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exhibit1015.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

	[seal:] 
	NIHIL PRIUS FIDE 
	COLLEGES OF NOTARIES OF SPAIN 
	                   [seal:] NOTARIAL OFFICE OF JOSE MIGUEL GARCIA LOMBARDIA MADRID 
	                                 NIHIL PRIUS FIDE 
	[stamp:] JOSE MIGUEL GARCIA LOMBARDÍA 
	NOTARY 
	Velazquez, 16 – 2nd floor, right 
	Telephone 91 426 42 40 
	28001 MADRID 

              MJ 

              NUMBER ONE THOUSAND FIVE HUNDRED EIGHTY-THREE. 

              INSTRUMENT RECORDING AS A PUBLIC DEED THE AGREEMENT CALLED “MASTER AGREEMENT FOR FINANCIAL TRANSACTIONS” (CMOF) IN CONNECTION WITH THE FINANZAS DOS, S.A. FINANCING AGREEMENT. 

              In Madrid, my city of residence, on this twenty first day of December in the year two thousand six. 

              Before me, JOSE-MIGUEL GARCIA LOMBARDIA, Notary of the Illustrious College of this Capital. 

THERE APPEARED: 

              MR. JUAN GALLARDO CRUCES, of legal age, domiciled for the purposes hereof at 28108-Alcobendas (Madrid), Av. de Europa, No. 18; and with Spanish Identity Card/Tax Identification Number 691950H. 

              MR. JOSÉ ANGEL TEJERO SANTOS, of legal age, domiciled for the purposes hereof at 28108-Alcobendas (Madrid), Av. de Europa, No. 18; and with Spanish Identity Card/Tax Identification Number 52570589H. 

MS. MARIA NOEMÍ DOCE DEIBE, of legal age, domiciled for the purposes hereof at 28660-Boadilla del Monte (Madrid), Av. Cantabria, no number - Ciudad Grupo Santander; and with Spanish Identity Card/Tax Identification Number 30671479J. 

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MR. MIGUEL ANGEL MARTINEZ VILLEGAS, of legal age, domiciled for the purposes hereof at 28660-Boadilla Del Monte (Madrid), Avda. Cantabria no number, Ciudad Grupo Santander; and with Spanish Identity Card/Tax Identification Number 5370886H. 

              MR. JOSE MARIA ARANA ARBIDE, of legal age, domiciled for the purposes hereof at 28006-Madrid, Calle José Ortega y Gasset No. 7; and with Spanish Identity Card/Tax Identification Number 15940550D. 

              MR. FRANCISCO JAVIER SIERRA SOPRANIA, of legal age, domiciled for the purposes hereof at 28006-Madrid, Calle Jose Ortega y Gasset No. 7; and with Spanish Identity Card/Tax Identification Number 42090468P. 

              MR. JUAN GORTAZAR SÁNCHEZ-TORRES, of legal age, domiciled for the purposes hereof at 48005-Bilbao (Vizcaya), Plaza de San Nicolas No. 4; and with Spanish Identity Card/Tax Identification Number 50838339J. 

              MR. FERNANDO VAZQUEZ DE LA PUERTA, of legal age, domiciled for the purposes hereof at 48005-Bilbao (Vizcaya), Plaza de San Nicolás No. 4; and with Spanish Identity Card/Tax Identification Number 401727D. 

              MR. JOSE SERRANO-SUÑER DE HOYOS, of legal age, domiciled for the purposes hereof at 28042-Madrid, Av. Ribera del Loira No. 28; and with Spanish Identity Card/Tax Identification Number 7240457B. 

              MR. JOSE GEFAELL CHAMOCHIN, of legal age, domiciled for the purposes hereof at 28042-Madrid, Av. Ribera del Loira No. 28; and with Spanish Identity Card/Tax Identification Number 36045004W. 

              MR. ROLANDO MENOR AGUILERA, of legal age, domiciled for the purposes hereof at 28046-Madrid, Paseo de la Castellana, 

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NIHIL PRIUS FIDE 

COLLEGES OF NOTARIES OF SPAIN

[seal:] NOTARIAL OFFICE OF JOSE MIGUEL GARCIA LOMBARDÍA MADRID NIHIL PRIUS FIDE 

No. 1; and with Spanish Identity Card/Tax Identification Number 50820688A. 

              MR. JAVIER ALVAREZ-RENDUELES VILLAR, of legal age, domiciled for the purposes hereof at 28046-Madrid, Paseo de la Castellana, No. 1; and with Spanish Identity Card/Tax Identification Number 7230899K. 

              MR. JOSÉ GUARDO GALDÓN, of legal age, domiciled for the purposes hereof at 28001-Madrid, CI. Hermosilla, No. 3; and with Spanish Identity Card/Tax Identification Number 18965349D. 

              MR. RICARDO TEISSIERE CARRIÓN, of legal age, domiciled for the purposes hereof at 28004-Madrid, Paseo de Recoletos No. 7-9; and with Spanish Identity Card/Tax Identification Number 698785E. 

              MR. JOSE LUIS SANCHEZ GARCIA, of legal age, domiciled for the purposes hereof at 28004-Madrid, Paseo de Recoletos No. 7-9; and with Spanish Identity Card/Tax Identification Number 46112737Z. 

THE PARTIES: 

              A). - Mr. Juan Gallardo Cruces and Mr. José Ángel Tejero Santos, jointly, on behalf of and representing the company named “FINANZAS DOS, S.A.,” a sole proprietorship, domiciled at 28104-Madrid, Calle Juan de Mena, No. 8, and with Tax Identification Number A80062755; organized for an indefinite life by an instrument executed before the Notary of Madrid, Mr. Rafael Ruiz Gallardón on May 29, 1991 under number 1,959 and registered in the 

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Commercial Register of Madrid, in volume 1529, folio 37, sheet number M-28200, 1st entry. 

              Their joint representation derives from the special power of attorney executed before the Notary of Alcobendas (Madrid) Mr. Manuel Rodríguez Marín dated December 20, 2006, bearing number 4,000, of which they showed me a notarized copy. In my opinion, and under my liability, the powers of representation evidenced are sufficient to carry out this act. 

              Hereinafter, “the Borrower.” 

              B).- Ms. María Noemí Doce Deibe and Mr. Miguel Angel Martínez Villegas, jointly, on behalf of and representing the company named “BANCO SANTANDER CENTRAL HISPANO, S.A.,” domiciled at 39004-Santander (Cantabria), Paseo de Pereda, No. 9 through 12, and with Tax Identification Number A39000013; founded for an indefinite life before the Notary Public of Santander, Mr. José Dou Martinez, on March 3, 1856, which was ratified and partially amended by another dated March 21, 1857 before the Notary Public of that capital Mr. José María Olarán. Transformed into a Credit Institution Stock Company by an instrument executed on January 14, 1875 before the Notary of Santander Mr. Ignacio Pérez, amended by subsequent instruments. By an instrument executed on June 8, 1992, before the Notary of Santander Mr. José María de Prada Díez, under the number 1,316 of his log, it adopted the

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	 	NIHIL PRIUS FIDE 

COLLEGES OF NOTARIES OF SPAIN

[seal:] NOTARIAL OFFICE OF JOSE MIGUEL GARCIA LOMBARDÍA MADRID NIHIL PRIUS FIDE 

name “Banco Santander S.A.,” which name it changed once again, to the current name, in an instrument [executed] before the Notary of Madrid, Mr. Antonio Fernández-Golfin Aparicio dated April 13, 1999, under the number 1212 of the log. The banking institutions “Banco Santander S.A.,” and “Banco Central Hispanoamericano, S.A.” shall be merged under this instrument, and Banco Central Hispanoamericano, S.A. shall be extinguished and its assets transferred as a whole to Banco Santander S.A. Banco Santander S.A. is registered in the Commercial Register of Cantabria, in volume 676, book 0, 8th section, sheet S-1960, folio 28, 596th entry. 

                   Their representation derives: 

              a). - With respect to Ms. Maria Noemi Doce Deibe, from the power of attorney executed before the Notary of Madrid Mr. José Maria de Prada Díez, on February 3, 2006 under number 321 (that in the Commercial Register of Madrid triggered the 1415th entry on the corporate sheet). 

              b). - And with respect to Mr. Miguel Angel Martínez Villegas, from the power of attorney executed before the Notary of Madrid Mr. José María de Prada Díez, on May 19, 2000 under number 1,491 (that in the Commercial Register of Madrid triggered the 772nd entry on the corporate sheet). 

              Ms. Doce Deibe and Mr. Martínez Villegas showed me notarized copies of the two

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above-described instruments. In my opinion, and under my liability, the powers of representation evidenced are sufficient to carry out this act. 

              C). - Mr. José María Arana Arbide and Mr. Francisco Javier Sierra Soprania, jointly, on behalf of and representing the Scottish institution named “THE ROYAL BANK OF SCOTLAND PLC,” a company duly established under the laws of Scotland with corporate domicile at EH2 2YB-Edinburg (United Kingdom), St. Andrew Square, 36, registered in the Register of Scotland under the number 90312. 

              Their joint powers as type “B” agents result from the power of attorney conferred by the Committee of the Board of Directors of the institution at its meeting dated August 2, 2006. The resolutions of this meeting were recorded in a public deed before the Notary of Madrid, Mr. Antonio de la Esperanza Rodríguez, on September 19, 2006, under the number 5,388 of his log, of which they showed me a notarized copy. In my opinion, and under my liability, the powers of representation evidenced by the appearing parties are sufficient to carry out this act. 

              D). - Mr. Juan Gortázar Sánchez-Torres and Mr. Fernando Vázquez de la Puerta, jointly, on behalf of and representing the company named “BANCO BILBAO VIZCAYA ARGENTARIA, S.A,” domiciled at 48005-Bilbao (Vizcaya), Plaza de San Nicolás, No. 4, and with Tax Identification Number A48265169; organized

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NIHIL PRIUS FIDE 

COLLEGES OF NOTARIES OF SPAIN

[seal:] NOTARIAL OFFICE OF JOSE MIGUEL GARCIA LOMBARDÍA MADRID NIHIL PRIUS FIDE 

under the name “Banco Bilbao Vizcaya, S.A.” pursuant to the instrument documenting the merger of the banks “Banco de Bilbao, S.A.” and “Banco de Vizcaya, S.A.” notarized by the Notary of Bilbao Mr. José Maria Arriola Arana, on October 1, 1988, under the number 4350. It adapted its Bylaws to the Stock Companies Law in an instrument notarized by the same Notary, Sr. Arriola Arana, on March 22, 1990, under the number 808 of his log, and these instruments triggered the 1st and 156th entries on sheet BI-17-A, formerly 14,741, on folios 183 and 49 of Books 1545 and 1657 of the 3rd Companies Section, volumes 2083 and 2227 of the Commercial Register of Vizcaya; and by another instrument documenting the merger of the institutions “Banco Bilbao Vizcaya, S.A.” and “Argentaria, Caja Postal y Banco Hipotecario, S.A.,” whereby Banco Bilbao Vizcaya, S.A. absorbed Argentaria, Caja Postal y Banco Hipotecario, S.A., notarized on January 25, 2000 by the aforesaid Notary, Mr. Arriola Arana, it adopted its current name “BANCO BILBAO VIZCAYA ARGENTARIA, S.A.” The first copy of that instrument triggered the 1035th entry on the aforesaid sheet of the Commercial Register of Vizcaya. 

     Their representation derives: 

     a). - With respect to Mr. Juan Gortázar Sánchez-Torres, from the power of attorney executed before the Notary of Bilbao Mr. José Ignacio

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Uranga Otaegui on June 6, 2000 under number 2,174 (which triggered the 1,124th entry on the corporate sheet of the Commercial Register of Vizcaya).

     b). - And with respect to Mr. Fernando Vázquez de la Puerta, from the power of attorney executed before the Notary of Bilbao Mr. José Maria Arriola Arana on March 17, 2003 under number 418 (which triggered the 1,511th entry on the corporate sheet of the Commercial Register of Vizcaya). 

     Messrs. Sanchez-Torres and Vázquez de la Puerta showed me notarized copies of the two above-described instruments. In my opinion, and under my liability, the powers of representation evidenced are sufficient to carry out this act. 

     E). - Mr. José Serrano-Suñer de Hoyos and Mr. José Gefaell Chamochin, jointly, on behalf of and representing the institution named “BNP PARIBAS BRANCH IN SPAIN,” domiciled at 28042-Madrid, Av. Ribera del Loira, No. 28, and with Tax Identification Number A0011117I; a branch of the French company “BNP PARIBAS SOCIETE ANONYME,” domiciled at Paris, 016 Boulevard des Italiens 75009, registered in the Business and Companies Registry of Paris, with number RCS Paris B662042449 (1966B04244). The Branch in Spain was established with the name “Banque Nationale de Paris, Branch in Spain,” and registered in the Commercial Register of Madrid in volume 5,121 general, 4,271 of the 3rd section of the Companies Book, folio 120, sheet

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NIHIL PRIUS FIDE 

COLLEGES OF NOTARIES OF SPAIN

[seal:] NOTARIAL OFFICE OF JOSE MIGUEL GARCIA LOMBARDÍA MADRID NIHIL PRIUS FIDE 

number 40,598, 1st entry. It changed its name to the name it currently uses pursuant to an instrument recording the merger of branches executed before the Notary of Madrid, Mr. Miguel Ruiz Gallardón García de la Rasilla, on December 29, 2000, under the number 7027 of his log. It changed its domicile to the current domicile in an instrument executed before the same Notary, Mr. Ruiz Gallardón García de la Rasilla, on May 8, 2003, under the number 3,636 of the log, which triggered the 66th entry on the corporate sheet of the Commercial Register. 

     Their representation derives: 

     a). - With respect to Mr. José Serrano-Suñer de Hoyos, from the power of attorney executed before the Notary of Madrid Mr. Miguel Ruiz Gallardón García de la Rasilla, on July 12, 2006 under number 5,797 (which triggered the 102nd entry on the corporate sheet in the Commercial Register of Madrid). 

     b). - And with respect to Mr. José Gefaell Chamochin, from the power of attorney executed before the Notary of Madrid Mr. Miguel Ruiz Gallardón García de la Rasilla on February 10, 2005 under number 963 (which triggered the 93rd entry on the corporate sheet in the Commercial Register of Madrid). 

     Messrs. Serrano-Suñer de Hoyos and Gefaell Chamochin showed me notarized copies of the two above-described instruments. In my opinion, and under my liability,

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the powers of representation evidenced are sufficient to carry out this act. 

     F). - Mr. Rolando Menor Aguilera and Mr. Javier Álvarez-Rendueles Villar, jointly, on behalf of and representing the Scottish institution named “CALYON, S.A. BRANCH IN SPAIN,” domiciled at 28046-Madrid, Paseo de la Castellana, No. 1, and with Tax Identification Number A0011043G; established under the original name “Banque de L’lndochine et de Suez, Branch in Spain” pursuant to the instrument executed before the Notary of Madrid, Mr. Enrique Giménez Arnau y Grau on September 14, 1979, under the number 4,644 of his log. Registered in the Commercial Register of Madrid in volume 5,208 general, 4,393 of the 3rd section of the Companies Book, folio 103, sheet number 41,727, 1st entry. 

     It changed its corporate name to “Banque Indosuez, Branch in Spain,” by an instrument executed in Madrid on August 25, 1982, before the Notary Mr. Ramón Fernández Purón under the number 2,353 of the log, supplemented by a subsequent instrument also executed before the same Notary under the number 3,333 of his log on November 16, 1982.      

     It changed its corporate name to “Credit Agricole Indosuez, Branch in Spain” pursuant to an instrument executed in Madrid on July 15, 1997, notarized by the Notary Mr. Jose Manuel Hernández Antolín, number 4,592 of the log. 

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NIHIL PRIUS FIDE 

COLLEGES OF NOTARIES OF SPAIN

[seal:] NOTARIAL OFFICE OF JOSE MIGUEL GARCIA LOMBARDÍA MADRID NIHIL PRIUS FIDE 

     And it subsequently changed its corporate name to “CALYON, BRANCH IN SPAIN,” by an instrument executed before the Notary of Madrid, Mr. Jose-Manuel García-Lozano Zulueta on July 12, 2004, under the number 867 of the log. It was registered in the Commercial Register of Madrid in volume 14,309, book 0, folio 58, section 8, sheet M-41727, 223rd entry. 

     Their representation derives: 

     a). - With respect to Mr. Rolando Menor Aguilera, from the power of attorney executed before the Notary de Madrid Mr. José Manuel García-Lozano Zulueta, on July 28, 2004 under number 951 (which triggered the 224th entry on the corporate sheet in the Commercial Register of Madrid). 

     b). - And with respect to Mr. Javier Álvarez-Rendueles Villar, from the power of attorney executed before the Notary of Madrid Mr. José Manuel García-Lozano Zulueta, on April 18, 2005 under number 359 (which triggered the 237th entry on the corporate sheet in the Commercial Register of Madrid). 

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     Messrs. Menor Aguilera and Álvarez-Rendueles Villar showed me notarized copies of the two above-described instruments. In my opinion, and under my liability, the powers of representation evidenced are sufficient to carry out this act. 

     G). - Mr. José Guardo Galdón on behalf of and representing the company named “BANCA IMI, S.p.A,” domiciled at Milán-ltalia, Corso Mateotti, 6, and registered in the Corporations Register under number 01988810154; established under the laws of Italy. 

     His representation and powers derive from the power of attorney executed before the Notary of Milan, Ms. Mónica de Paoli, on December 21, 2006; this power is pending an apostille, which I note. 

     H).- Mr. Ricardo Teissiere Carrión and Mr. José Luis Sánchez García, jointly, on behalf of and representing the institution named “NATEXIS BANQUES POPULAIRES, S.A. Branch in Spain,” domiciled at 28004-Madrid, Paseo de Recoletos, No. 7-9, and with Tax Identification Number N0013055I; a branch in Spain of the French company “Natexis Banques Populaires, Sociedad Anónima,” registered in the Business and Companies Registry of Paris with number B542 044 524, with corporate domicile at Calle Saint Dominique 45, 75007 Paris; the Branch in Spain started up its operations on May 25, 2001. It is registered in the Commercial Register of Madrid in volume 16,647, folio 97, sheet M-283933, 1st entry. 

     Their representation derives: 

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NIHIL PRIUS FIDE 

COLLEGES OF NOTARIES OF SPAIN

[seal:] NOTARIAL OFFICE OF JOSE MIGUEL GARCIA LOMBARDÍA MADRID NIHIL PRIUS FIDE 

     a). - With respect to Mr. Ricardo Teissiere Carrión, from the power of attorney executed before the Notary of Madrid Mr. Pablo de la Esperanza Rodríguez, on April 19, 2006 under number 1,693 (which triggered the 11th entry on the corporate sheet of the Commercial Register of Madrid). 

     b). - And with respect to Mr. José Luis Sánchez García, from the power of attorney executed before the Notary of Madrid Mr. Antonio de la Esperanza Rodríguez, on September 20, 2001 under number 4,060 (that triggered the 2nd entry on the corporate sheet of the Commercial Register of Madrid). 

     Messrs. Teissiere Carrión and Sánchez García showed me notarized copies of the two above-described instruments. In my opinion, and under my liability, the powers of representation evidenced are sufficient to carry out this act. 

     Hereinafter, BANCO SANTANDER CENTRAL HISPANO, S.A., THE ROYAL BANK OF SCOTLAND PLC, BANCO BILBAO VIZCAYA ARGENTARIA, S.A, BNP PARIBAS BRANCH IN SPAIN, CALYON, S.A. BRANCH IN SPAIN, BANCA IMI, S.p.A and NATEXIS BANQUES POPULAIRES, S.A. Branch in Spain, together called “Providers of the Interest Rate Hedging Agreements” and each one of them a “Provider of the

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Interest Rate Hedging Agreements.” 

     IDENTIFICATION, JUDGMENT OF CAPACITY AND DESCRIPTION. 

     I identify the appearing parties by their above-described identification documents. They swear to me that their representative capacity subsists and is unlimited. In the capacity in which they act, I deem them to have the capacity and standing necessary to execute this instrument described above, to which end 

     THEY STATE: 

     I. – That on this same date the Borrower and the Institutions “Providers of the Interest Rate Hedging Agreements” have executed a syndicated financing agreement for a sum of € 5,678,271,513.32 which has been recorded in a public deed before me today. 

     II. – That on this same date the appearing parties, for the same purpose as they are now pursuing, have executed a private instruments called a “MASTER AGREEMENT FOR FINANCIAL TRANSACTIONS” according to the model drafted by the Asociación Española de Banca Privada [Spanish Private Banking Association] (AEB).

     The Parties have likewise formalized some modifications to the Master Hedging Agreement by executing several Exhibits I thereto, hereinafter the “Exhibits to the Master Hedging Agreement.” 

     III. – They deliver to me a copy of that document and the exhibits thereto executed and signed by the appearing parties, in

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NIHIL PRIUS FIDE 

COLLEGES OF NOTARIES OF SPAIN

[seal:] NOTARIAL OFFICE OF JOSE MIGUEL GARCIA LOMBARDÍA MADRID NIHIL PRIUS FIDE 

the capacity in which they act, asking that I notarize it, as I so do. 

It is issued on 100 folios of standard paper, including the exhibits, all of them written on one side only. 

     IV. – The content of said document governs the business relationships between parties for the consideration of all the financial transactions executed as a result of the financing extended to the Borrower. 

     The Parties, in the capacity in which they act, represent that they are aware of its entire scope and significance. 

     V. – It is the intention of the Parties to record such document in a public deed so that it shall have the appropriate legal force and, in the capacity in which they act, 

THEY STIPULATE: 

     ONE. – The appearing parties, in the capacity in which they act, record in a public deed, for all pertinent legal purposes, the aforesaid private document that has been notarized in this original copy, as well as each one of the exhibits executed by each institution Provider of the Interest Rate Hedging Agreement, by the same token acknowledge as theirs and genuine the signatures affixed by them on such documents in which they accept, approve and ratify their total content. 

     TWO. – The Lending Institutions hereby ratify 

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the mandate and powers conferred upon Banco Santander Central Hispano, S.A. in its capacity as Agent Bank, which shall include the content referred to in the Financing Agreement, in Clause 25 thereof. 

     THREE. – Pursuant to Article 572.2 of the Civil Procedure Law, the Lending Institutions and the Borrower expressly set forth that the amount of the balance resulting for the enforcement certificate shall be that resulting from the calculation performed pursuant to the provisions set forth in Clause 28 of the Financing Agreement. 

     FOUR. – All the Providers of the Interest Rate Hedging Agreements agree that for the execution of this instrument as many bilateral relationships as the number of Providers of the Interest Rate Hedging Agreements that there are shall be established. The general terms set forth in the Master Hedging Agreement and the respective particular terms set forth in each one of the Exhibits referred to in Background Clause Two of this instrument shall apply to each one of them. 

     Notwithstanding the foregoing, Master Agreement for Financial Transactions Agreement executed by and between Banco Santander Central Hispano, S.A. and Finanzas Dos, S.A. is also recorded in a public deed. It shall serve as a single bilateral framework for the relationship between the Parties. Therefore, the generally applicable framework governing for the rest shall not apply. 

	[seal:] NIHIL PRIUS FIDE 

COLLEGES OF NOTARIES OF SPAIN

[seal:] NOTARIAL OFFICE OF JOSE MIGUEL GARCIA LOMBARDÍA MADRID NIHIL PRIUS FIDE 

     Thus, the Borrower and the Providers of the Interest Rate Hedging Agreements are contractually bound by the Master Hedging Agreement and the Exhibits executed by the Borrower with each of them. 

     FIVE. – All the expenses deriving from this recording in public deed shall be for account of the Borrower. 

EXECUTION: 

     They so state and execute after I, the Notary, made the legally required reserves and admonitions, particularly those related to taxes and to the reading of this original copy. They represent that they have read it themselves and find it in order, and they therefore consent and sign. 

NOTARIZATION: 

     I, the Notary, notarize this public deed pursuant to the record provided by the Parties on which they insist. It is issued on ten folios of notarial paper, numbers 7H3077602, 7H3077603, 7H3077604, 7H3077605, 7H3077606, 7H3077607, 7H3077608, 7H3077609 and 7H3077610. I ATTEST to its total content, and to the fact that it fully complies with prevailing law and the duly informed will of the appearing parties, who have freely consented, after the explanations of its meaning and 

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transcendence. It should therefore be deemed true, complete, legal and valid. 

     The signatures and initials pertaining to the execution and the notarizing Notary appear, along with the mark and stamp of the Notary. 

Unified Documentation Follows 

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NIHIL PRIUS FIDE 

COLLEGES OF NOTARIES OF SPAIN

[seal:] NOTARIAL OFFICE OF JOSE MIGUEL GARCIA LOMBARDÍA MADRID NIHIL PRIUS FIDE 

MASTER AGREEMENT FOR FINANCIAL TRANSACTIONS 

This Master Agreement for Financial Transactions has been drafted by the Asociación 

Española de Banca Privada [Spanish Private Banking Association] (AEB) and recorded 

in a Certificate authorized by the Notary of Madrid, Mr. Vicente Moreno Torres Carny on 

February 5, 1997, under number 206 of his Log. The Asociación Española de Banca 

Privada authorizes its use under the express condition that only the total reproduction 

hereof can be accompanied by the mention “Master Agreement for Financial 

Transactions.”© 

	In Madrid, on December 21, 2006

	THE PARTIES

	ON THE ONE HAND:

	Mr. Jose María Arana Arbide, of legal age, with Spanish Identity Card No. 15.940.550-D and Mr. Francisco Javier Sierra Sopranis, of legal age, with Spanish Identity Card No. 42.090.468-P, on behalf of and representing THE ROYAL BANK OF SCOTLAND, PLC (hereinafter, “RBS”), domiciled at 36 St. Andrew Square, Edinburg EH2 2YB, Scotland, duly inscribed in the Commercial Registry of Scotland under number 90312, duly empowered to enter into this agreement pursuant to the power of attorney executed before the Notary of Madrid, Mr. Antonio de la Esperanza Rodríguez on September 19, 2006, under number 5.388 of his log. 

	Mr. José Gefaell Chamochin, of legal age, with Spanish Identity Card No. 36.045.004-W and Mr. José Serrano-Suñer de Hoyos, of legal age, with Spanish Identity Card No. 7.240.457-B, on behalf of and representing BNP PARIBAS Branch in Spain (hereinafter, “BNP”), domiciled in Madrid, Calle Ribera del Loira, number 28 and Tax Identification Number A-0011117-l, duly empowered to enter into this agreement pursuant to the powers of attorney conferred, respectively, before the Notary of Madrid Mr. Miguel Ruiz Gallardón García de la Rasilla, on February 10, 2005, under number 963 of his log and before the same Notary on July 12, 2006, under number 5.797 of his log. 

	Mr. Rolando Menor Aguilera, of legal age, with Spanish Identity Card No. 50.820.688-A and Mr. Javier Álvarez-Rendueles Villar, of legal age, with Spanish Identity Card No. 7.230.899-K, on behalf of and representing CALYON, Branch in Spain (hereinafter, “CALYON”), domiciled in Madrid, Paseo de la Castellana, number 1 and Tax Identification Number A-0011043-G, duly empowered to enter into this agreement pursuant to the powers of attorney conferred, respectively, before the Notary of Madrid Mr. José Manuel García-Lozano Zulueta on July 28, 2004, under number 951 of his log and before the same Notary on April 18, 2005, under number 359 of his log. 

	Mr. Fernando Vázquez de la Puerta, of legal age, with Spanish Identity Card No. 401.727-D and Mr. Juan Gortázar Sánchez-Torres, of legal age, with Spanish Identity Card No. 50.838.339-J, on behalf of and representing BANCO BILBAO VIZCAYA ARGENTARIA, S.A. (hereinafter, “BBVA”), domiciled in Bilbao, Plaza de San Nicolas, number 4 and Tax Identification Number A- 

	1

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	- 2 -

48265169, duly empowered to enter into this agreement pursuant to the powers of attorney conferred, respectively, before the Notary of Bilbao Mr. José María Arriola Arana, on March 17, 2003, under number 418 of his log and before the Notary of Bilbao Mr. José Ignacio Uranga Otaegui, on June 6, 2000, under number 2.174 of his log.

	Mr. José Guardo Galdón, of legal age, with Spanish Identity Card No. 18.965.349-D, on behalf of and representing BANCA IMI S.P.A. (hereinafter, “IMI”), domiciled at Milan (Italy), calle Corso Matteotti, number 6, and inscribed in the corporations registry under number 01988810154, duly empowered to enter into this agreement pursuant to the power of attorney conferred before the Notary of Milan Ms. Mónica de Paoli, on December 21, 2006. 

	Mr. Ricardo Teissiere Carrión, of legal age, with Spanish Identity Card No. 00698785-E and Mr. Jose Luís Sánchez García, of legal age, with Spanish Identity Card No. 46112737-Z, on behalf of and representing NATEXIS BANQUES POPULAIRES, Branch in Spain (hereinafter, “NATEXIS”), domiciled at Paseo de Recoletos 7-9 and Tax Identification Number N-00130551, duly empowered to enter into this agreement pursuant to the powers of attorney conferred, respectively, before the Notary of Madrid Mr. Pablo de la Esperanza Rodríguez on April 19, 2006, under number 1.693 of his log, and before the Notary of Madrid Mr. Antonio de la Esperanza Rodríguez on September 20, 2001, under number 4.060 of his log. 

Hereinafter and without prejudice to the subsequent provisions of this agreement, SAN, RBS, BNP, CALYON, BBVA, IMI, and NATEXIS shall be referred to together as the “Lending Institutions”; and

	 	ON THE OTHER HAND:

Mr. Juan Gallardo Cruces, of legal age, with Spanish Identity Card/Tax Identification Number 691.950H and Mr. José Ángel Tejero Santos, of legal age, with Spanish Identity Card/Tax Identification Number 52.570.589H, on behalf of and representing FINANZAS DOS, S.A. (hereinafter, the “Borrower”), domiciled at Madrid, Calle Juan de Mena, No. 8, and with Tax Identification Number A-80062755, duly empowered to enter into this agreement pursuant to the power of attorney conferred before the Notary of Madrid Mr. Manuel Rodríguez Marín on December 20, 2006, under number 4,000 of his log. 

The two Parties acknowledge each other’s sufficient capacity to execute this agreement and, therefore 

	THEY STATE

     I. - That it is the will of the Parties to maintain a business relationship that will be manifested in the execution of certain financial transactions, that they will to establish a single business relationship that contemplates as a whole the various financial transactions executed. 

     II. - That to such end they formalize this MASTER AGREEMENT FOR FINANCIAL TRANSACTIONS (hereinafter, called Master Agreement) in order to govern the terms under 

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	[seal:] 

NIHIL PRIUS FIDE 

COLLEGES OF NOTARIES OF SPAIN

[seal:] NOTARIAL OFFICE OF JOSE MIGUEL GARCIA LOMBARDÍA MADRID NIHIL PRIUS FIDE 

which the specific financial transactions will be executed under such single business relationship, setting forth to such end the following 

	CLAUSES

     ONE.- NATURE, DEFINITIONS AND INTERPRETATION.

     1.1. - Nature. This document (which, together with its dispositions and Exhibits I and II forms a unit) is a Master Agreement (hereinafter, the Master Agreement). The financial transactions (hereinafter, the Transactions) agreed upon hereunder by means of the pertinent confirmation document (hereinafter, the Confirmation) shall be understood to be integrated into the subject of this Master Agreement, and the provisions hereof shall apply to them, without prejudice to the specific terms set forth in the Confirmations.

     This Master Agreement and the Transactions are part of a single business relationship between the Parties, governed by the Master Agreement, (all of them taken together, the Agreement). 

     1.2. - Definitions. The terms defined below shall have the meaning attributed to them in this Clause as follows: 

     “Calculation Agent” is the Party or Entity designated as such in Appendix I.

     “Amount Payable” means the amount stated in the Settlement Currency and calculated pursuant to the provisions of Clause Fourteen, in the event of accelerated maturity of transactions based on any of the grounds set forth in Clauses Nine and/or Ten. 

     “Grounds for Accelerated Maturity” includes the Grounds for Accelerated Maturity due to Circumstances Imputable to the Parties and Grounds for Accelerated Maturity of Transactions due to Objective Circumstances that Have Arisen set forth in Clauses Nine and Ten, respectively. 

     “Certain Financial Agreements” means the transactions of the same or similar nature as those governed by this Master Agreement that are not expressly covered hereby and whether or not they were entered into prior to the Master Agreement. 

     “Business Day” means any day on which banks are open to execute financial transactions (a) in connection with any payment or delivery obligation deriving from the Transactions, in the place or places specified in the Confirmation for the payment and/or delivery in question; or if none, in the place that the Parties specify by any other means and, in the event that none is specified, in the financial center of the currency in which such payment is denominated; (b) with respect to the communications and/or notices contemplated 

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in Clause Twenty, in the place of domicile indicated by the Parties in Appendix I for receipt thereof. For the purposes of the Master Agreement and the Confirmations, Saturday is considered a non-business day. Notwithstanding the provisions of Clause Twenty, in the event that the date(s) set pursuant to the provisions of the Agreement does (do) not fall on a Business Day, it shall be understood that the date(s) refer(s) to the next Business Day unless such next Business Day falls in the next calendar month, in which case it shall be understood to be the immediately preceding Business Day. 

     “Determined Debt,,” notwithstanding the provisions of Exhibit I, means any economic obligation deriving from borrowing operations, such as loans or credits received and deposits accepted, be they present or future obligations, whether they are principal or accessory obligations, guarantees or any other type of obligation. 

     “Specified Entity” means the entity (entities) designated as such in Exhibit E; if in said Exhibit subsidiaries are indicated, these shall be understood to be the entities defined in Article 4 of Law 24/1988 of July 28 on the Securities Market and in Article 42 of the Commercial Code. 

     “Benchmark Institutions” means five financial institutions, designated by the Party who is to determine the Market Value, notable for their trading volume on the pertinent market. 

     “Accelerated Maturity Date” means the date fixed as such pursuant to the provisions of Clause Eleven. 

     “Guarantor” means the entity (entities) designated as such in Exhibit I. 

     “Guarantee” means the duly documented guarantee specified as such in Exhibit I. 

     “Outstanding Amounts,” with respect to the Transactions whose maturity has been accelerated, means the sum of: (a) the amounts whose payment was due on or before the Accelerated Maturity Date that have not been paid, plus, with respect to the obligations to be settled by delivery that had not been [so settled] on or before the Accelerated Maturity Date, the equivalent in cash of the value the item to be delivered would have on the market, on the date delivery was to have taken place (when this is the consideration due) and (b) the interest due as from the date on which the payment was due or would have been due, pursuant to item (a) above, up to (but not including) the Accelerated Maturity Date at the Applicable Interest Rate. The interest shall be calculated based on daily capitalization and for the days actually elapsed and in the same currency as the amounts due and outstanding. 

     With respect to an obligation to deliver, the value it would have on the market shall be understood to mean the value prevailing on the date on which delivery would have taken place, obtained by the Party who is to determine it pursuant to the provisions of Clause Fourteen based on the quotes by entities notable for 

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COLLEGES OF NOTARIES OF SPAIN

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their trading volume on the pertinent market, whether they are credit institutions or intermediaries specializing in the mediation of such Transactions (brokers). In the event that both Parties are to determine it, the value it would have on the market to restore or replace the transaction(s) that should have been settled by delivery shall be the arithmetical average of the values set by the Parties. 

     “Settlement Amount” means the equivalent in the Settlement Currency of the amount resulting from applying the criterion of Market Value or, as appropriate, of Replacement Value, for Transaction(s) whose maturity has been accelerated. 

     The criterion of Replacement Value shall only be applicable to Transaction(s) for which no Market Value can be determined.

     “Maximum Amount,” for purposes of Cross Default, means the Maximum Amount specified as such in Exhibit I. 

     “Settlement Currency” means the peseta. 

     “Transactions’’ are those that are governed by this Master Agreement and that are expressly covered hereby. 

     “Affected Transactions” are the Transactions that are affected by any of the Grounds for Accelerated Maturity of Transactions due to Objective Circumstances that Have Arisen set forth in Clause Ten. 

     “Affected Parties” are the Parties that have triggered any of the Grounds for Accelerated Maturity of Transactions due to Objective Circumstances that Have Arisen set forth in Clause Ten. 

     “Applicable Interest Rate” means (a) with respect to the payment obligations assumed under Clause 3.1 of the Master Agreement that have not been honored by the Party in breach, the Late Interest Rate; (b) with respect to the payment obligation for the Amount Payable pursuant to Clause Fourteen and that, being due on the Payment Date determined pursuant to Clause 15.1, have not been honored, the Late Interest Rate; (c) with respect to any other payment or delivery obligation that should have been honored, the Ordinary Interest Rate and (d) in any other case, the Termination Interest Rate. 

     “Late Interest Rate” means the interest rate stated as an annual percentage rate, which shall be the sum of the 1-day interbank rate in the currency in which the payment should have been made which the Party owed such payment did not receive, plus the spread set forth in Exhibit I. Late interest shall be calculated by applying the Late Interest Rate to the amount that the Party owed has not received, it being due, based on the year applicable (360 or 365 [days]) to the currency in question. Such interest shall be calculated based on daily capitalization and the number of days actually elapsed. In the 

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event that the currency in which the payment should have been made is the peseta, the 1-day interbank rate shall be obtained from the average rate for 1-day non-transferable interbank deposits published by ACF of Spain in the Bulletin of the Book Entry Office or in any publication or media replacing it in the future. 

     “Ordinary Interest Rate” means the interest rate stated as an annual percentage rate equivalent to the cost the Party not in breach (which shall be who shall calculate it) would incur if it had to refinance its position. 

     “Termination Interest Rate” means the interest rate stated as an annual percentage rate equivalent to the arithmetic average of the cost that each of the Parties would incur if they had to refinance their position. 

     “Market Value” means, with respect to one or more Transactions whose maturity has been accelerated, an amount (in the Settlement Currency) fixed by the Party that pursuant to this Master Agreement has standing to determine it based on the valuations provided by the Benchmark Institutions. Each valuation shall express the amount that that Party would receive (in which case such amount shall be stated with a negative sign) or pay (in which case such amount shall be stated with a positive sign) to enter into a Transaction with the Benchmark Institution which would have the effect of maintaining the economic value that for that Party any payment or delivery that should have been made as from the Accelerated Maturity Date would have, by virtue of the Transaction or group of Transactions whose maturity has been accelerated. 

     The Outstanding Amounts of the Transaction or group of Transactions whose maturity has been accelerated shall not be included, but the payments or deliveries due after the Accelerated Maturity Date that were not made because such Accelerated Maturity Date had been set shall be included. 

     The Party that determines the amount shall ask the Benchmark Institutions to provide their valuations, to the extent possible, on the same date and at the same time, on the Accelerated Maturity Date or, as appropriate, as soon as possible after that date. If more than three valuations are obtained, the arithmetic average of all of them shall be calculated, discarding the highest and lowest valuations. If only three valuations were provided, the Market Value shall be the mean value after having discarded the highest and lowest values. If only three valuations were provided and two of them were identical, the Market Value shall be the arithmetic average of the three valuations. If less than three valuations are obtained, it shall be deemed that the determination of the Market Value is not possible. 

     “Replacement Valuation” means the amount (in the Settlement Currency) that one Party calculates as its losses of any type (stated with a positive sign) or gains (stated with a negative sign) in connection with this Master Agreement or with a Transaction or group of Transactions whose maturity has been accelerated, as the case may be, including any loss of profits deriving from the Agreement, financing costs, or, at the option of such Party, but without any possibility of duplication, the losses and/or costs deriving from the accelerated maturity, settlement, obtaining or reestablishing any hedge or position related thereto (or any gain obtained in such cases). 

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	[seal:] 

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COLLEGES OF NOTARIES OF SPAIN

[seal:] NOTARIAL OFFICE OF JOSE MIGUEL GARCIA LOMBARDÍA MADRID NIHIL PRIUS FIDE 

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     The Replacement Valuation includes the losses, interest and costs (or gains) in connection with any payment or delivery that should have been made on or before the pertinent Accelerated Maturity Date but was not made. 

     The Replacement Valuation does not include the expenses in connection with Clause Nineteen of this Master Agreement. 

     The determination of the Replacement Valuation shall be made on the Accelerated Maturity Date or as soon as possible thereafter. The determination of the Replacement Valuation may be made by using as a benchmark quotes for market rates or prices from one or more Benchmark Institutions in the market in question. 

     1.3. - Interpretation. For purposes of the interpretation of the Master Agreement, in the event of any discrepancy between the provisions of the Master Agreement and Exhibit I thereto, the provisions of Exhibit I shall govern. In the event of any discrepancy between the Master Agreement and the provisions of any Confirmation, the provisions of the Confirmation shall govern. 

	 	TWO.- PURPOSE OF THE AGREEMENT.

     The purpose of this Master Agreement is to govern the business relationship arising between the Parties as a result of executing the Transaction listed below by way of illustration rather than limitation: 

	2.1.      	- Swaps (SWAPS) of: 
			
	 	
	

	Interest rates (IRS); 
	 	
	

	Floating interest rates (BASIS SWAPS) ; 
	 	
	

	Currencies (CURRENCY SWAPS); 
	 	
	

	Mixed currencies and interest rates (CROSS-CURRENCY RATE SWAPS); 
	 	
	

	Commodities (COMMODITY SWAPS); 
	 	
	

	Shares or equity indexes (EQUITY SWAPS/EQUITY INDEX SWAPS); 
	 	
	

	Any type traded on the financial markets. 
	 
	2.2.      	- Forward rate transactions (FRA) 
	 
	2.3.      	- Futures and options transactions on over-the-counter markets on: 
	 
	 	
	

	Interest rates (CAPS, COLLARS and FLOORS); 
	 	
	

	Currencies; 
	 	
	

	Commodities; 
	 	
	

	Bonds; 
	 	
	

	Shares or equity indexes; 
	 	
	

	Any type traded on the financial markets. 
	 

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       2.4. - Foreign exchange trading (FX), spot (SPOT), and forward (FORWARD) transactions. 

     2.5. - Any combination of the foregoing, similar transaction or any analogous transaction specified in the pertinent Confirmation. 

     THIRD. – CARRYING OUT THE PURPOSE OF THE AGREEMENT. 

     3.1 . - Payment or Delivery Obligations. The Parties shall make such payments or deliveries as they are obligated to make for each Transaction as set forth in the pertinent Confirmation and in this Master Agreement. 

     3.2. - Term. The term shall be essential for all purposes of the Agreement. 

     3.3. - How the Payments are to Be Made. The payments shall be made on the date, at the place and in the currency set forth in the pertinent Confirmation for each Transaction. 

     3.4. - How the Deliveries are to Be Made. Any deliveries the Parties are obligated to make shall be made on the date in the form and/or through the Clearing House or System that the Parties agree upon and that is specified in the pertinent Confirmation. 

     3.5 . - Reciprocal Nature of the Obligations. Performance of the payment or delivery obligations of each of the Parties under each Transaction shall not be enforceable when any of the following circumstances apply:

          3.5.1. - The other Party has incurred, or with respect to such other Party there exist, Grounds for Accelerated Maturity, whether or not an Accelerated Maturity Date has been declared with respect to the other Party;

          3.5.2. - Any condition subsequent whatsoever exists that affects the performance of the obligation(s)

     FOUR. - CHANGE OF ACCOUNT. 

     Either of the Parties may change the account(s) designated for the receipt of payment(s) or delivery (deliveries), upon notice in writing to the other Party, giving notice of at least five (5) Business Days prior to the value date of the pertinent payment or delivery, such notice being binding, absent a reasonable objection by the other Party. 

     FIVE. -SETTLEMENT BY NETTING. 

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     The amounts payable on the same date and in the same currency pursuant to the same Transaction, shall be settled by netting, unless the Parties agree to a different system in Exhibit I or in the pertinent Confirmations, so that, if both Parties are to make payments to each other, the Party whose amount payable is greater shall be obligated to make a payment for the amount in excess. Likewise, the Parties, if they so set forth in Exhibit I and/or in the pertinent Confirmations, may settle by netting the amounts payable pursuant to two or more Transactions maturing on the same date and denominated in the same or different currencies.      

     SIX.- LATE INTEREST. OTHER AMOUNTS.

     6.1. - Late Interest. Any delay in the payments with respect to the value date set forth in the Confirmation pertaining to the Transaction in question, or with respect to the value date that is a Payment Date for purposes of Clause Fifteen, shall accrue late interest at the Late Interest Rate on the amount due and payable and outstanding from the value date (inclusive) through the date on which the payment is actually made (exclusive). Late interest shall be paid in the same currency as the amount owed and shall accrue and be capitalized daily at the Late Interest Rate indicated for the purposes set forth in Article 317 of the Commercial Code. 

     6.2. - Other Amounts. Any delay in the obligation to deliver securities and/or commodities, shall give rise to compensation for damages in favor of the Party that is prejudiced, by calculation of the financial cost and/or the substitution cost for the securities and/or commodities not delivered, from the value date of the delivery through the date on which the delivery is actually made. 

     SEVEN.- CONFIRMATIONS.

     7.1. - Obligation to Confirm. The Transactions that the Parties agree to shall be confirmed in writing, by mail, or by means of telex, fax, or other electronic messaging system at the addresses that are set forth to such end in Exhibit I. The Parties expressly represent that the Transactions shall be binding from the very moment at which the essential terms thereof have been agreed to either orally or otherwise. The Parties shall be responsible for sending and verifying the receipt and content of the Confirmations and, in the event that there are any discrepancies or errors, such discrepancies or errors shall be communicated immediately to the other Party and Confirmations shall be exchanged once corrected. 

     7.2. - Content of the Confirmations. The Confirmations shall include the essential elements for each type of Transaction, as well as a reference to the Master Agreement on which they are based. 

     7.3. - Confirmations by Electronic Systems. Confirmations issued by electronic systems shall adhere to the formats that such systems have established or, as appropriate, to the format that the Parties have agreed upon. Without prejudice to the provisions of Clause 7.2, for this type of Confirmation, and in the event that the electronic system does not permit making reference to the Master Agreement, it shall be understood that, for all intents and purposes, such Transactions shall be executed under such Master Agreement. 

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     EIGHT. - TRANSACTION CURRENCY. 

     8.1. - Transaction Currency. Any payments to be made pursuant to a Transaction shall be made in the currency specified in each one of the Confirmations (hereinafter, “the Transaction Currency”). 

     8.2. - Change of Transaction Currency. On an exception basis, the Party that is the beneficiary of the payment may accept a currency other than the Transaction Currency under the terms agreed upon by the Parties. 

     NINE. - GROUNDS FOR ACCELERATED MATURITY DUE TO CIRCUMSTANCES IMPUTABLE TO THE PARTIES. 

     Either of the Parties can accelerate the maturity of all the Transactions and therefore the Agreement pursuant to the provisions of Clauses Eleven through Fourteen when the other Party, any of its Guarantors or any of its Specified Institutions incurs any of the following Grounds for Accelerated Maturity: 

     9.1. - Breach of Payment and/or Delivery Obligations. 

     Breach of payment and/or delivery obligations pursuant to the provisions set forth in Clause Three, provided that such breach has not been cured within three (3) Business Days from the date on which notification of the default by the Party not in breach is effective, pursuant to the provisions set forth in Clause Twenty. 

     9.2. - Breach of the Agreement. The breach of any obligation deriving from the Agreement other than payment and/or delivery obligations, provided that such breach has not been cured within thirty (30) calendar days from the date of notification of the breach by the Party not in breach takes effect pursuant to the provisions set forth in Clause Twenty. 

     9.3. - Breach with Respect to the Guarantee. 

     9.3.1. - Breach by the Guarantor(s) of the payment and/or delivery obligation deriving from the Guarantee. 

     9.3.2. - Breach by the Guarantor(s) of any obligation other than the payment and/or delivery obligation deriving from the Guarantee, provided that such breach has not been cured by the deadline set forth in the pertinent Guarantee document, or, in the absence thereof, within fifteen (15) calendar days from the notification by the Party not in breach, pursuant to the provisions set forth in Clause Twenty. 

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[seal:] NOTARIAL OFFICE OF JOSE MIGUEL GARCIA LOMBARDÍA MADRID NIHIL PRIUS FIDE 

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     9.3.3. - The extinction or suspension of the Guarantee for any reason prior to the performance or extinction of the obligations secured by such Guarantee without the prior written consent of the other Party. 

     9.3.4. - The challenge of the enforceability or validity of the Guarantee by either of the Parties, by the Guarantor(s) itself (themselves) or by a third party. 

     9.4. - Falsity of the Representations. Falsity, misstatement or inaccuracy of the representations made by either of the Parties or any of their Guarantors with respect to the Agreement or to any Guarantee Document. 

     9.5. - Default on Certain Financial Agreements. Default by either of the Parties, by any of their Guarantors or by any of their Specified Institutions, on any of the Certain Financial Agreements when such default, once the pertinent notifications are given, gives rise to the termination or accelerated maturity of the obligations undertaken pursuant to the Certain Financial Agreement. 

     9.6. - Cross Default. Default by either of the Parties, by any of their Guarantors or by any of their Specified Institutions, on any of the agreements establishing the Certain Debt when:

 

          9.6.1 .- The Certain Debt that is or that could be declared a liquid, due and payable debt prior to the maturity originally set forth in such agreements as a result of the breach of the obligations assumed pursuant to said agreements that when taken either individually or together is equal to or greater than the Maximum Amount specified in Exhibit I. 

          9.6.2. - The payment obligations undertaken pursuant to such agreements are breached upon their maturity in amounts that when taken individually or together are equal to or greater than the Maximum Amount specified in Exhibit I. 

     9.7. - Situations of Insolvency. If either of the Parties, any of their Guarantors or any of their Specified Institutions: 

          9.7.1. - Should request or a third party should request with respect to it, as the case may be, the declaration of suspension of payments or bankruptcy or a proceeding for reduction of amount or extension of time, or a meeting of creditors, or it appeals to its creditors to in some fashion restructure its debt. 

          9.7.2. - Should default on the payment of obligations or any in- or out-of-court proceedings that could trigger the seizure or auctioning of its assets for a sum exceeding that set forth in Exhibit I be filed against it. 

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     9.7.3. - Should default in general on its obligations or should admit in writing its inability to perform them when due. 

     9.7.4. - Should adopt any resolution or take any measure with the intention of triggering any of the foregoing situations. 

     9.7.5. - If a legal proceeding should be filed or any pleading or complaint should be filed before a Tribunal or Court or against either of the Parties whose final result: 

          a) should be intended to or could affect its assets for a sum exceeding that set forth in Exhibit I; and/or 

          b) should be intended to cause the appointment of one or more inspectors, depositories, auditors, administrators, receivers or the like for the assets of either of the Parties for a sum exceeding that set forth in Exhibit I. 

     9.7.6. - Should be the subject of intervention and or replacement measures by the competent authorities when the entity in question is subject to administrative supervision. 

     9.8. - Decrease in Economic Solvency. When the solvency of either of the Parties and/or of any of their Guarantors and/or any of their Specified Institutions is substantially diminished as a result of their participation in any fashion in a merger or spin-off transaction or sale of assets and/or liabilities. 

     9.9. - Extinction of the Legal Personality or Change in the Legally-Mandated Bylaws. The extinction of the legal personality, change of the legal nature or legally-mandated bylaws of either of the Parties, of any of their Guarantors, or of any of their Specified Institutions. 

     9.10. - Dissolution of Company. When a resolution for dissolution is requested or adopted with respect to either of the Parties and/or its Guarantors or of any of their Specified Institutions. 

     9.11. - Other Grounds for Accelerated Maturity due to Circumstances Imputable to the Parties. The Parties may agree in Exhibit I upon other Grounds for Accelerated Maturity due to Circumstances Imputable to the Parties with the effects set forth in Clause 11.1. 

     TEN. - GROUNDS FOR ACCELERATED MATURITY OF TRANSACTIONS DUE TO THE OCCURRENCE OF OBJECTIVE CIRCUMSTANCES. 

     10.1. - Occurrence of Prohibition or Impossibility. When, after the date on which a Transaction was entered into, legal or regulatory provisions applicable thereto are modified or new legal or regulatory provisions applicable thereto are established or the legal or administrative interpretation 

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of such provisions is modified such that it is prohibited or impossible for either of the Parties and/or for their Guarantors (hereinafter, the Affected Party), to make or receive the payments or deliveries due pursuant to such Transaction, perform other obligations deriving therefrom or perform the obligations deriving from the Guarantee. 

     The foregoing shall not apply when the prohibition or impossibility is triggered as a result of the breach by either of the Parties and/or by their Guarantors of the obligation to maintain in force all the authorizations necessary for the successful performance of this Agreement, in which case, the provisions set forth in Clause 9.2 shall apply. 

     10.2. - Change in Tax Law. When, after the date on which a Transaction was executed, legal or regulatory provisions with respect to taxes are modified or new legal or regulatory provisions with respect to taxes are established, and as a result thereof the Party and/or its Guarantor(s) (the Affected Party) that is to make the payments must apply carry-backs, deductions or withholdings for or as payment on account for a tax or that in any other way substantially affects the Transaction. 

     10.3. - Other Grounds for Accelerated Maturity due to the Occurrence of Objective Circumstances. The Parties may agree in Exhibit I upon other Grounds for Accelerated Maturity due to the Occurrence of Objective Circumstances with the effects set forth in Clause 11.2. 

     ELEVEN. -CONSEQUENCES OF THE GROUNDS FOR ACCELERATED MATURITY. 

     11.1. - With Respect to the Grounds for Accelerated Maturity due to Circumstances Imputable to the Parties. In the event that any of the Parties, Guarantors and/or Specified Institutions should incur one or more of the Grounds for Accelerated Maturity due to Circumstances Imputable to the Parties set forth in Clause Nine, the Party not in breach can notify the Party in breach of the accelerated maturity of all the Transactions that at that time are in force between the Parties pursuant to this Master Agreement, setting to such end an Accelerated Maturity Date. 

     11.2. - With Respect to the Grounds for Accelerated Maturity of Transactions due to Objective Circumstances that Have Arisen. 

          11.2.1. - In the event that one or more of the circumstances specified in Clause Ten should occur, the Parties shall seek in good faith to reach an agreement within thirty (30) calendar days from the date that the notification sent by the Unaffected Party to the Affected Party, or vice versa, takes effect, proposing the initiation of negotiations in order to avoid the accelerated maturity of the Affected Transactions. 

          11.2.2. - If within the period of thirty (30) calendar days set forth in Clause 11.2.1. the Parties should fail to reach an agreement, either of the Parties may notify the other Party of the accelerated maturity of all the Affected Transactions that at that time are in force between the Parties pursuant to this Master Agreement, setting to such end an Accelerated Maturity Date. 

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     11.3. - The Accelerated Maturity Date may not be earlier than the date that the notification sent for purposes of this Clause takes effect pursuant to the provisions set forth in Clause Twenty. 

     TWELVE. - EFFECTS OF THE SETTING OF AN ACCELERATED MATURITY DATE. 

     12.1. - With the effects set forth in this Clause and whether or not any of the Grounds for Accelerated Maturity persist, on the Accelerated Maturity Date set: 

          a) the maturity of all the Transactions that at that time are in force between the Parties shall be accelerated because any of the Grounds for Accelerated Maturity due to Circumstances Imputable to the Parties set forth in Clause Nine has occurred, or 

          b) the maturity of the Affected Transactions shall be accelerated because any of the Grounds for Accelerated Maturity of Transactions due to Objective Circumstances that Have Arisen has occurred. 

     12.2. Upon the setting of the Accelerated Maturity Date the payment and/or delivery obligations set forth in Clause 3.1 shall be suspended with respect to the Transactions whose maturity has been accelerated, without prejudice to the provisions of other Clauses of this Agreement. 

     12.3. Once the Accelerated Maturity Date takes effect, the Amount Payable deriving from the accelerated maturity of the Transactions shall be calculated pursuant to the provisions set forth in the following Clauses. 

     THIRTEEN. STATEMENT OF ACCOUNT. 

     Once the Accelerated Maturity Date takes effect, the pertinent Party (Parties) shall perform the calculations set forth in Clause Fourteen and shall provide to the other Party a statement of account including the following information: 

          a) a breakdown of the calculations performed, including those pertaining to valuations, specifying as appropriate the Amount Payable pursuant to Clause Fourteen. 

          b) data on the account(s) to which the payment of the Amount Payable are to be made. 

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     FOURTEEN. CALCULATION OF THE AMOUNT PAYABLE.

     14.1. Amount Payable due to the Accelerated Maturity of Transactions Triggered by Grounds for Accelerated Maturity due to Circumstances Imputable to the Parties. 

                    14.1.1. Applying the Criterion of Market Value. The Amount Payable, shall be equal to: 

          a) the sum of the Settlement Amount (calculated by the Party not in breach) for all the Transactions whose maturity has been accelerated (with a positive sign if the Settlement Amount is receivable by the Party not in breach and with a negative sign in the event that the Party not in breach should have to pay the Party in breach such Settlement Amount) and the equivalent in the Settlement Currency of the Outstanding Amounts due to the Party in breach, less 

          b) the equivalent in the Settlement Currency of the Outstanding Amounts due to the Party in breach. 

               14.1.2. Applying the Criterion of Replacement Valuation. In the event that it is not possible to determine a Market Value, or even if it were possible, the result would not be commercially acceptable, the Amount Payable shall be an amount equivalent to the Replacement Valuation of the Transactions whose maturity has been accelerated and with respect to which it is not possible to determine a Market Value. 

              14.1.3. Common Standards. The outstanding amounts payable by the Party in breach shall be added, as applicable, to the Amount Payable resulting from applying the provisions set forth in paragraphs 14.1.1. and 14.1.2. above (including the interest accrued at the Applicable Interest Rate), and the outstanding amounts payable by the Party not in breach shall be subtracted from such amount (including interest accrued at the Applicable Interest Rate) for Transactions covered by the Master Agreement that, having matured for reasons other than grounds for Accelerated Maturity, are outstanding as of the Accelerated Maturity Date. 

               If the Amount Payable should be positive, the Party in breach shall pay the Party not in breach; on the other hand, if the Amount Payable should be negative, the Party in breach shall pay the absolute value of such amount to the Party in breach. 

     14.2. Amount Payable due to the Accelerated Maturity of Transactions Triggered by Grounds for Accelerated Maturity due to the Occurrence of Objective Circumstances. 

In the event that the maturities of Transactions are accelerated as a result of the Grounds for Accelerated Maturity set forth in Clause Ten and there is:

     14.2.1. One Affected Party: The Amount Payable shall be determined pursuant to the provisions of Clause 14.1. References to Party in breach and to Party not in breach shall be understood to be references to Affected Party and Unaffected Party. 

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	 	14.2.2. Two Affected Parties:

	I. Applying the Criterion of Market Value.

a) Each of the Parties shall calculate the Settlement Amount resulting from the accelerated maturity of the Affected Transactions.

b) The lower of the Settlement Amounts, which we call Y, obtained (with the pertinent sign) by the other Party (Party Y) shall be subtracted from the higher of the Settlement Amounts, which we call X, obtained by one Party (Party X), with the pertinent sign, dividing the result by two. To the above result (X-Y)/2, the amount resulting from subtracting the Outstanding Amounts payable to Party Y from the Outstanding Amounts payable to Party X shall be added.

c) If the Amount Payable resulting from sub-paragraph b) above is a positive number, Party Y shall pay Party X, and if it is a negative number, Party X shall pay the absolute value of such amount to Party Y. 

II. Applying the Criterion of Replacement Valuation. 

Each of the Parties shall determine the Replacement Value of the Transaction(s) whose maturity has been accelerated. From the higher of the Replacement Values, which we call X, obtained by one Party (Party X), with the pertinent sign, the lower of the Replacement Values, which we call Y, obtained by the other Party (Party Y) (with the pertinent sign) shall be subtracted, dividing the result by two (X-Y)/2. 

If the Amount Payable resulting from the foregoing sub-paragraph is a positive number, Party Y shall pay Party X, if it is a negative number, Party X shall pay the absolute value of such amount to Party Y. 

14.3. Conversion of Currencies for the Calculation of the Amount Payable. 

14.3.1. The calculation of the Amount Payable shall be performed in the Settlement Currency. 

14.3.2. In the event that an amount that should be included in the Amount Payable is not denominated in the Settlement Currency, such amount shall be calculated by the Party with standing to do so, pursuant to the provisions set forth in this Clause, based on the exchange rate for that other currency against the Settlement Currency, on the Accelerated Maturity Date (or, as appropriate, on a subsequent date if the Market Value or the Replacement Value is determined on a subsequent date). The exchange rate for the Settlement Currency shall be the spot rate provided by a credit institution or an FX market broker notable for its trading volume on the market for the currency in question for the purchase of that other currency against the Settlement Currency 

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          at approximately 11:00 a.m. in the city where the entity providing the quote is located and on the date on which the buy rate for that other currency is customarily determined, with value date on the Accelerated Maturity Date (or later). The entity providing the quote shall be selected in good faith by the Party that pursuant to the Agreement has standing to calculate the pertinent amount, and in the event that both Parties have standing, it shall be selected by agreement between them. 

	 	FIFTEEN.- PAYMENTS.

     15.1. Payment Date. The Party (Parties) shall notify the other Party of the amount of the Amount Payable calculated as set forth in Clause Fourteen, as well as the Payment Date, which cannot be earlier than the effective date of the notification pursuant to the provisions set forth in Clause Twenty. The pertinent payment shall be made with value date on the Payment Date. The Amount Payable thus calculated shall accrue interest at the Ordinary Interest Rate from the Accelerated Maturity Date through the Payment Date. 

     15.2. Netting of the Amount Payable. The Party owed the amount of the Amount Payable may net such amount against any amount it owes to the other Party pursuant to any agreement other than the Agreement. 

     15.3. Application for payment of the Amount Payable. The Parties mutually and expressly authorize each other to apply for the payment of the Amount Payable owed by the other Party, as appropriate, before the netting referred to in the foregoing paragraph that has not been paid within five (5) Business Days following the Payment Date, any balances, deposits [or other] type of account in any currency that the debtor Party has on the books of the creditor Party, or on the books of any of their agencies, branches, representative offices or establishments, expressly and irrevocably empowering the creditor Party to, without prior notice, reduce or cancel the balances to pay the debt, paying and transferring the amount necessary to the creditor Party and liquidating securities or other types of securities or rights or deposits, including time deposits that the debtor Party has or may have with the creditor Party. The creditor Party shall inform the debtor Party of the breakdown of the netting performed.

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	 	SIXTEEN.- GENERAL.

     16.1. Absence of Legal Proceedings or Arbitration. The Parties represent that neither they nor their Guarantors are party to any legal proceeding or arbitration whatsoever and they are not aware of the existence of any lawsuits or arbitration pending or expected against them that might affect their capacity to perform their respective obligations pursuant to the Agreement. 

     16.2. Waiver. The delay by the Parties in exercising the rights and actions deriving from the Agreement shall not in any way whatsoever imply a waiver of such rights and actions. The one-off or partial exercise of any right or power shall not prejudice the existence and subsequent exercise of such right or power, nor any other set forth in the Agreement. 

     The aforesaid rights or powers deriving from this Agreement do not exclude any rights or actions that prevailing law may recognize in favor of the Parties, which shall not be altered. 

     16.3. Void or Voidable Clauses. If a Clause of the Agreement becomes void or voidable pursuant to applicable law, such Clause shall be understood not to have been included or shall be modified, and the rest of the Agreement shall be valid and enforceable unless the nature or purpose of the Agreement is frustrated by such Clause. 

     16.4. Delivery of Documentation. The Parties undertake to provide any document set forth in Exhibit I and/or in the pertinent Confirmation on the date specified for such delivery. 

     16.5. Obligation to Obtain Authorizations. The Parties undertake to obtain and maintain in force such authorizations as may be necessary for the validity and full enforceability of the Agreement. 

     16.6. Awareness of the Risks Associated with the Transactions. The Parties state they are aware of and accept the risks inherent in or that may derive from the Transactions governed by this Master Agreement. Each of the Parties states that it has not been advised by the other Party regarding the benefits or advisability of executing any of the Transactions, and such Transactions are executed based on the estimates and calculations of risks performed by the Parties themselves. 

	 	SEVENTEEN. ASSIGNMENT.

     The Parties may not assign all or any portion of this Agreement without the written consent of the other Party. 

     Notwithstanding the foregoing, the rights to receive payments and/or deliveries that either of the Parties has pursuant to the Agreement may be assigned without requiring the consent of the other Party provided that this does not imply any prejudice for the other Party.

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	[seal:] 

NIHIL PRIUS FIDE 

COLLEGES OF NOTARIES OF SPAIN

[seal:] NOTARIAL OFFICE OF JOSE MIGUEL GARCIA LOMBARDÍA MADRID NIHIL PRIUS FIDE 

	 	EIGHTEEN. RECORDINGS.

          The Parties authorize each other to record telephone conversations that they have with each other with respect to the Agreement or to the Transactions, and to use such recordings as means of proof for any incidence or arbitration and/or legal proceeding that may arise directly or indirectly between the Parties. 

	 	NINETEEN. EXPENSES.

          All expenses, including valuation and tax expenses, incurred by the other Party as a result of the defense and/or enforcement of its rights pursuant to the Agreement, of the Guarantee or of the accelerated maturity of any Transaction, expressly including the professional fees of attorneys, legal representatives, experts and, as appropriate, notaries, or any other expense that may be incurred, shall be for account of the Party that has breached its obligations deriving from the Agreement. 

	 	TWENTY. NOTIFICATIONS.

          For purposes of the notifications to be sent pursuant to the Agreement, the Parties agree that any means providing evidence of receipt may be used, with the notification obligation deemed to have been performed by sending a letter or telegram with acknowledgement of receipt, telex or fax sent to the respective domiciles or indications set forth in Exhibit I, with the acknowledgement of receipt of the letter or telegram or the original of the telex evidencing its receipt by means of the pertinent indications constituting reliable proof of the notification. 

          In any case, with respect to the effective date of the notifications, notifications made by fax shall be followed by the sending of the original text by telegram or letter with acknowledgement of receipt and shall be deemed effective as of the date shown on said acknowledgement of receipt pursuant to the foregoing paragraph. 

          For purposes of the Agreement, the Parties indicate as their domicile and telex and fax numbers valid for any notification those that they indicate in Exhibit I. 

          Any change or modification to the domiciles or indications set forth in Exhibit I shall be reported to the other Party by any of the means indicated above, and such change or modification shall not take effect until the acknowledgement of receipt of the change or modification has been received. 

     If the day the notification is received is not a business day, the notification shall be understood to take effect the next Business Day. 

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	 	TWENTY ONE. VALIDITY.

               21.1. Entry into Force and Retroactive Effects. This Master Agreement shall enter into force and take effect as of the date set forth in the heading. Notwithstanding the foregoing, the effects of the Agreement may be applied retroactively if the Parties so expressly agree in Exhibit I as of the date indicated therein, and thus all the Transactions executed by the Parties between the date set forth in Exhibit I and that of the heading of this Master Agreement are covered by this Master Agreement, or those that the Parties expressly specify in Exhibit I are covered by this Master Agreement. 

               21.2. Termination. This Master Agreement shall be in force and shall have full effect until such time as either of the Parties notifies the other Party of its desire to terminate it at least thirty (30) calendar days prior to the termination date indicated by the notifying Party. The termination of this Master Agreement shall not affect the Transactions executed hereunder, which shall continue to be governed by the Clauses of this Agreement and the specific terms hereof. 

	 	TWENTY TWO. APPLICABLE LAW.

               The Agreement shall be subject to and interpreted pursuant to Spanish law.

	 	TWENTY THREE. JURISDICTION.

               23.1. Arbitration Agreement. The Parties, if they so set forth in Exhibit I, may submit any conflicts or disputes that may arise with respect to the Agreement, or the interpretation, performance or enforcement thereof, to Arbitration pursuant to the provisions set forth in said Arbitration Agreement. 

               23.2. Jurisdiction. In the event that they do not stipulate an Arbitration Agreement, the Parties, waiving their own jurisdiction, submit to the jurisdiction and competence of the Courts and Tribunals set forth in Exhibit I. 

               In witness whereof, the Parties execute this Master Agreement in two copies, in the place and on the date indicated in the heading. 

	For FINANZAS DOS, S.A.U.: 	  	  
	  
	/s/ Juan Gallardo Cruces 	  	/s/ José Ángel Tejero Santos 
	

		

	Signed: Mr. Juan Gallardo Cruces 	  	Signed: Mr. José Ángel Tejero Santos 

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	NIHIL PRIUS FIDE 	  	  
	COLLEGES OF NOTARIES OF SPAIN 	  	  
	          [seal:] NOTARIAL OFFICE OF JOSE MIGUEL GARCIA LOMBARDÍA MADRID NIHIL PRIUS FIDE 
		  	  
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	The Lending Institutions: 	  	  
	For BNP PARIBAS, Branch in Spain 	  	  
	/s/ José Gefaell Chamochin 	  	/s/ Jose Serrano-Suñer de Hoyos 
	

		

	Signed: Mr. José Gefaell Chamochin 	  	Signed: Mr. Jose Serrano-Suñer de Hoyos 
	  
	For THE ROYAL BANK OF SCOTLAND, PLC 	  	  
	/s/ Jose María Arana Arbide 	  	/s/ Francisco Javier Sierra Sopranis 
	

		

	Signed: Mr. Jose María Arana Arbide 	  	Signed: Mr. Francisco Javier Sierra Sopranis 
	  
	For CALYON, Branch in Spain 	  	  
	/s/ Rolando Menor Aguilera 	  	/s/ Javier Álvarez-Rendueles Villar 
	

		

	Signed: Mr. Rolando Menor Aguilera 	  	Signed: Mr. Javier Álvarez-Rendueles Villar 
	  
	  
	For BANCO BILBAO VIZCAYA ARGENTARIA, S.A.: 

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	/s/ Fernando Vázquez de la Puerta 	  	/s/ Juan Gortazar Sánchez-Torres
	

		

	Signed: Mr. Fernando Vázquez de la Puerta 	  	Signed: Mr. Juan Gortazar Sánchez-Torres 
	  
	For BANCA IMI S.P.A.: 	  	  
	/s/ José Guardo Galdón 	  	  
	

		
	Signed: Mr. José Guardo Galdón 	  	  
	  
	For NATEXIS BANQUES POPULAIRES, Branch in Spain 
	/s/ Ricardo Teissiere Carrión 	  	/s/ José Luís Sánchez García 
	

		

	Signed: Mr. Ricardo Teissiere Carrión 	  	Signed: Mr. José Luís Sánchez García 

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[seal:] 

NIHIL PRIUS FIDE 

COLLEGES OF NOTARIES OF SPAIN 

     [seal:] NOTARIAL OFFICE OF JOSE MIGUEL GARCIA LOMBARDÍA MADRID NIHIL PRIUS FIDE 

EXHIBIT I 

TO THE 

MASTER AGREEMENT FOR FINANCIAL TRANSACTIONS 

between 

BNP PARIBAS BRANCH IN SPAIN (hereinafter, “PROVIDER OF THE DERIVATIVE”) 

and FINANZAS DOS, S.A. (hereinafter, the “Client”) 

December 21, 2006 

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1.           Late Interest Rate. For purposes of the determination of the Late Interest Rate defined in Clause 1.2., the applicable spread shall be 2%. 

2.           Settlement by Netting. For the purposes of Clause Five, the Parties set forth that settlement by netting shall not be applicable to two or more Transactions, except as expressly agreed upon by the Parties. 

3.           Domicile for Confirmations and Notifications. 

BNP PARIBAS Branch in Spain sets forth as its domicile for Confirmations and notifications: 

	Name of the Institution 	  	BNP Paribas Branch in Spain 
	To the attention of: 	  	Back - Office 
	Domicile: 	  	Ribera del Loira 28, 28042 Madrid 
	Telephone: 	  	34-913888159 
	Fax: 	  	34--913888110 
	

		

	  
	  
	The Client sets forth as its domicile for Confirmations and notifications: 
	
	Name of the Institution 	  	FINANZAS DOS, S.A. 
	To the attention of: 	  	Juan Gallardo/José Ángel Tejero 
	Domicile: 	  	Avda. Europa, 18 
	  	  	Parque Empresarial La Moraleja 
	  	  	28108 Alcobendas 
	  	  	Madrid 
	Telephone: 	  	91 663 2355 
	Fax: 	  	91 663 2929 

4.           Guarantee. The Parties expressly acknowledge that the obligations that derive for the Client from this Agreement shall be guaranteed pursuant to the provisions set forth in the Coordination Agreement and Guarantees dated December 21, 2006 (the “Guarantees Agreement”) entered into in connection with the Commercial Loan Agreement by and between the Client and the Lending Institutions on December 21, 2006 (the “Loan Agreement”), regardless of whether such guarantees were granted by the Client or by third parties. For greater 

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clarity, the Guarantees Agreement is incorporated by reference into this agreement, and it shall be part of this Master Agreement with respect to the Guarantees granted by the Client and by third parties in favor of BNP PARIBAS Branch in Spain to secure the obligations deriving therefrom. 

5.           Guarantor. Those that pertain in each case pursuant to the provisions set forth in paragraph 4 above. 

6.           Calculation Agent. The Calculation Agent shall be BNP PARIBAS Branch in Spain. Breach of the Calculation Agent’s obligations shall not in any case be deemed Grounds for Accelerated Maturity due to Circumstances Imputable to the Parties among those set forth in Clause 9, nor Grounds for Accelerated Maturity due to the Occurrence of Objective Circumstances among those set forth in Clause 10 of this Master Agreement. 

7.           Maximum Amount. For the purposes of Clause 9.6.1. and/or 9.6.2., Maximum Amount is set forth as an amount equal to or greater than ONE HUNDRED MILLION euros (€ 100,000,000) or the equivalent thereof in any other currency for BNP PARIBAS Branch in Spain and ONE HUNDRED MILLION euros (€ 100,000,000) or the equivalent thereof in any other currency for the Client. 

8.           Documents to be Delivered. For the purposes of Clause 16.4., the Parties undertake to deliver the following documentation: 

	       Copies of the instruments conferring powers 	  	Yes 
	     upon the signatories, duly recorded in the 	  	  
	     Commercial Registry. 	  	  
	  
	Signature acknowledgement pages or cards or 	  	Yes 
	       photocopies of the identity documents of the 	  	  
	       signatories showing their signatures clearly. 	  	  

9.           Situations of Insolvency. For purposes of the provisions set forth in Clauses 9.7.2. and 9.7.5., an amount equal to or greater than ONE HUNDRED MILLION euros (€ 100,000,000) or the equivalent thereof in any other currency for BNP PARIBAS Branch in Spain and ONE HUNDRED MILLION euros (€ 100,000,000) or the equivalent thereof in any other currency for the Client is set forth. 

10.        Other Grounds for Accelerated Maturity due to Circumstances Imputable to the Parties.  Pursuant to the provisions set forth in Clause 9.11. , the Parties set forth the following additional Grounds for Accelerated Maturity due to Circumstances Imputable to the Parties: 

10.1 In the event that any of the Grounds for Accelerated Maturity set forth in Clause 27 of the Loan Agreement should occur and such grounds have not been cured by the deadline set forth therein. Thus, the Grounds for Accelerated Maturity described in Clause 27 of the Loan Agreement shall be deemed additional Grounds for Accelerated Maturity of the Master Agreement. The Client expressly acknowledges that consideration as grounds for accelerated maturity for purposes of this clause shall not be altered by the circumstance resulting in the grounds for accelerated maturity in question also occurring for any other third parties other than the Client,

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and, therefore, that all the circumstances and breaches described in the Loan Agreement as constituting Grounds for Accelerated Maturity shall imply the application of this agreement, regardless of whether or not these circumstances or breaches affect or are due to any other third parties other than the Client. For these purposes and for greater clarity, the references made in said Clause 27 of the Loan Agreement to the Borrower and to the Agent or to the Lending Institutions shall be understood to be made to the Master Agreement, to the Client and to BNP PARIBAS Branch in Spain, respectively, when this is applicable. Specifically, the references made therein to the Agent or to the Majority of Lending Institutions shall be understood to be made to BNP PARIBAS Branch in Spain for the purposes set forth herein. 

11.           Other Grounds for Accelerated Maturity of Transactions due to Objective Circumstances that Have Arisen. Pursuant to the provisions set forth in Clause 10.3. , the Parties set forth the following additional Grounds for Accelerated Maturity of Transactions due to Objective Circumstances that Have Arisen: Not Applicable. 

12.           Specified Institutions. For all purposes set forth in the Agreement: 

BNP PARIBAS Branch in Spain designates as Specified Institutions: None. 

The Client designates as Specified Institutions: None 

13.           Certain Financial Agreements. For the purposes of Clause 9.5., “Certain Financial Agreements” shall be understood to be the Loan Agreement and the Coordination Agreement and Guarantees identified in paragraph 4 above and all such agreements as are directly related to the financing extended under such loan. 

14.           Retroactive Effects. For purposes of the provisions set forth in Clause 21.1., the effects of this Master Agreement take effect as from the date set forth in the heading, and no prior Transaction entered into by and between the Client and BNP PARIBAS Branch in Spain is covered hereunder. 

15.           Jurisdiction. For any issues and disputes that may arise with respect to the validity, interpretation or performance of this agreement, or of the confirmations of the transactions that may be executed hereunder, the Parties, expressly waiving their own jurisdiction and any other jurisdiction to which they may be entitled, submit to the jurisdiction and competence of the Courts and Tribunals of Madrid. 

	16.      	Additional Provisions. 
	 
	16.1      	The Parties state that certain spelling errors have occurred in Exhibit II DEFINITIONS FOR THE INTERPRETATION OF THE CONFIRMATIONS DOCUMENTED PURSUANT TO THE MASTER AGREEMENT FOR FINANCIAL TRANSACTIONS and agree to the correction thereof as set forth below: 
	 
		
	 	(i)      	In the definition of “Floor Amount Payable,” the formula for the calculation thereof set forth in 
	 	Exhibit II is deemed replaced by the following formula: 
	 	CPF = IT x (TPF - TR) x PR 
	 	 	       100 x N 
	 

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(ii) The definition of Floor Amount Payable that is set forth in Exhibit II to this Agreement is modified by the Parties as follows: 

The last sentence of said definition shall read as follows: 

“The resulting amount shall only be enforced in the event that the Benchmark Rate is lower than the Floor Rate” 

	16.2      	Negative Interest Rates. 
	 
	 	The Parties agree that, if in a given Calculation Period for a Transaction, either of the two Parties should be bound to pay a Floating Amount and such amount turns out to be a negative amount (the “Negative Rate Payer”), and that is because of any of the following circumstances: (i) due to a quoted negative Floating Rate or (ii) due to the application of a Spread to the Floating Rate, then the Floating Amount payable by the Negative Rate Payer for that Calculation Period shall be deemed to be zero. And, in turn, the Party that, in principle, will receive such negative Floating Amount (the “Receiver of Negative Rate”) will have to pay the Negative Rate Payer the absolute value of the negative Floating Amount according to its calculation, in addition to any other amount owed for that Calculation Period with respect to that Transaction on the Settlement Date on which the Floating Amount would have been due if it had been a positive number. 
	 
	 	Any other amount payable by the Receiver of Negative Rate with respect to the absolute value of the negative Floating Amount shall be made in the currency in which the Floating Amount would have been paid if it had been an Amount with a positive sign, without taking into account the currency in which the Receiver of Negative Rate would have been bound to make its payments and into the amount designated by the institution receiving such payment. 
	 
	16.3      	Voluntary Accelerated Maturity of the Loan Agreement. 
	 
	 	(a)      If, pursuant to the terms and conditions set forth in the Loan Agreement, the accelerated maturity of the entire loan should be triggered, the Client undertakes, if BNP PARIBAS Branch in Spain should so request, to cancel the Transactions subject to this Master Agreement at the time or once such accelerated maturity is triggered. For such purposes, the Parties agree that the provisions set forth in Clause 14 of the Master Agreement shall apply, and BNP PARIBAS Branch in Spain shall be deemed the Party not in breach. Any costs incurred as a result of the cancellation or accelerated maturity of all the open Transactions shall be for account of the Client. 
	 
	 	(b)      If, pursuant to the terms and conditions set forth in the Loan Agreement, any partial accelerated maturity thereof should be triggered, the Client undertakes, if BNP PARIBAS Branch in Spain should so request, to modify the terms of the Transactions executed pursuant to this Master Agreement to whatever extent should be necessary, and in particular reducing the notional amount thereof proportionally to the repayment made, such that the financial equivalence for the two Parties is maintained at all times. Any costs incurred as a result of the partial cancellation or accelerated maturity of such Transactions shall be for account of the Client. 
	 
	 
	16.4      	Incorporation by Reference. 
	 

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The provisions set forth in the Payments Clause, in the Representations and Warranties Clause, in the Obligations Clause, in the Change of Circumstances Clause and in the Taxes Clause of the Loan Agreement shall apply to this Master Agreement mutatis mutandis and are incorporated by reference. Nonetheless, in these cases as well as in any other incorporations by reference to the Clauses of the Loan Agreement mentioned in this Master Agreement, the references made in such Clauses to the Agreement to the Borrower and to the Agent or to the Lending Institutions shall be understood to be made to the Master Agreement, to the Client and to BNP PARIBAS Branch in Spain, respectively, when this is applicable. The guarantees and promises of guarantees executed pursuant to the Guarantees Agreement on this same date before the Notary of Madrid Mr. José Miguel García Lombardía (“Guarantees”) secure or shall secure, as appropriate, the performance of the obligations that for the Client and in favor of BNP PARIBAS Branch in Spain derive from this Master Agreement and from the Transactions formalized hereunder, pursuant to the terms agreed upon by the Parties. 

16.5 Additional Obligations of the Parties. 

(a) Maintain this Master Agreement and the rights deriving therefrom for BNP PARIBAS Branch in Spain with at least the same preferences, privileges and seniority as those deriving or that could derive for the Lending Institutions pursuant to the Loan Agreement. 

(b) Extend to BNP PARIBAS Branch in Spain, in its capacity as counterparty under this Master Agreement, any Guarantee that the Client may grant in connection with the Loan Agreement. 

(c) The Parties undertake not to disclose to third parties any information whatsoever with respect to this Agreement, except in response to a court or administrative order or to comply with applicable law. Such prohibition shall not apply to third parties interested in acquiring a participation in this Agreement who are eligible to do so pursuant to the provision set forth herein, provided that such third parties have executed the pertinent confidentiality agreement. 

17. Awareness of the Risks Associated with the Transactions. The Parties agree to replace paragraph 16.6 of Clause Sixteen of the Master Agreement with the following: 

“The Parties state they are fully aware of the risk of volatility inherent in the execution of Transactions whose market value may fluctuate rapidly as a result of fluctuations in interest rates, exchange rates or other parameters relevant to the financial markets. They further state that they are aware that the obligations deriving from the Transactions require appropriate actions and constant monitoring of the trend of the financial markets and of the positions that the Parties take thereon, for which sufficient means and knowledge regarding the operation of such markets are necessary. 

Each of the Parties represents that it is acting on its own behalf, and that in order to enter into the Transactions it has made its own decisions and performed its own estimates and calculations of risks, as well as the pertinent analysis to determine if the Transaction is appropriate for it according to its own judgment and that of its advisors, when it has deemed appropriate the intervention of such advisors. Each of the Parties represents that it is not based on any communication whatsoever (either verbal or written) from the other party in the form of financial advice nor has it been advised by the other Party regarding the benefits or advisability of executing any of the Transactions. In this regard, the

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information about and explanation of the terms and conditions of a Transaction shall not be deemed financial advice or a recommendation to execute the Transaction. No communication (either verbal or written) received from the other Party shall be deemed a guarantee or commitment regarding the expected results of the Transaction. 

The Parties represent that they are capable of assessing the risks of each Transaction (either on their own or with the help of financial advisors) and they represent that they are aware of and accept the risks that they assume and that they have the capacity to assume such risks. 

Finally, the Parties represent that they are familiar with the recommendation of the Basel Committee of the Bank for International Settlements with respect to the advisability of entering into the financial Transactions that are the purpose of this Agreement under master agreements that set forth the existence of a single business relationship for purposes of termination and settlement, as appropriate, of the contractual positions of the Parties, notwithstanding the coexistence within such single business relationship of several financial transactions.” 

18. Enforcement procedures. 

(a) Loan account and evidentiary value of the balance due and payable. 

For purposes of this Master Agreement, BNP PARIBAS Branch in Spain will open a special account to record accruals and payments pursuant to this Master Agreement and monitor the balance thereof at all times. 

Notations pertaining to amounts accrued but not yet due may be posted each day or all at once for any period of time. 

The Client acknowledges and expressly accepts that the balances resulting from the aforementioned credit account, duly certified by BNP PARIBAS Branch in Spain shall be valid as evidence in court, barring any error, pursuant to the express agreement set forth in the following paragraph. 

(b) Calculation of the balance due and payable and court enforcement. 

The Parties expressly agree that the calculation to determine the liquid, due and payable amount owed by the Client to BNP PARIBAS Branch in Spain pursuant to this Master Agreement (pursuant to articles 571 and 572 of Law 1/2000, of January 7, on Civil Procedure), for purposes of the payment and of the enforcement action or for purposes of in- or out-of-court claims, shall be performed by BNP PARIBAS Branch in Spain. To such end, BNP PARIBAS Branch in Spain shall issue the pertinent certification, including the balance owed by the Client to BNP PARIBAS Branch in Spain, pursuant to a calculation of the loan account referred to in the foregoing paragraph. The amount due and payable resulting from such calculation shall be notified to the Client pursuant to the provisions set forth in Article 572.2, end, of said law. 

The certificate or first copy of the instrument including the confirmation or, as appropriate, this Master Agreement, issued including the formalities set forth in Law 1/2000, of January 7, on Civil Procedure shall be an enforceable instrument, and it shall be accompanied by the following documents: 

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a.           Certification issued by the Notary that has issued the certificate or notarized the instrument evidencing that such certificate or instrument agrees with the entries in his/her Log Book and the date of such entries. 

b.           The certification referred to in the first paragraph of this section stating the balance of the account resulting from the calculation made by BNP PARIBAS Branch in Spain. The Notary acting at the request of BNP PARIBAS Branch in Spain shall evidence in said certification that the calculation of the Client’s debt was performed in the fashion agreed upon by the Parties set forth in this Master Agreement. 

c.           The statement of the debit and credit entries and those pertaining to the application of interest that determine the specific balance for which enforcement is sought. 

d.           The document evidencing having notified the Client the amount due and payable pursuant to the provisions set forth in the first paragraph of this section. 

All taxes, expenses and customs duties that may accrue or may be incurred in connection with the notarial instruments referred to in the foregoing paragraph shall be for account of the Client. 

	In witness whereof, the Parties execute this Exhibit, which, for all pertinent intents and purposes, shall be 
	deemed an integral part of the Master Agreement, in two copies, in the place and on the date indicated at 
	the beginning. 	  	  
	  
	  
	FINANZAS DOS S.A. 	  	BNP PARIBAS Branch in Spain 
	  
	/s/ Juan Gallardo Cruces 	  	/s/ José Gefaell Chamocin 
	

		

	Mr. Juan Gallardo Cruces 	  	Mr. José Gefaell Chamocin 
	  
	  	  	/s/ José Serrano Suñer 
	  	  	Mr. José Serrano Suñer 
	/s/ José Ángel Tejero Santos 	  	  
	

		
	Mr. José Ángel Tejero Santos 	  	  

30

[seal:] 

NIHIL PRIUS FIDE 

COLLEGES OF NOTARIES OF SPAIN 

     [seal:] NOTARIAL OFFICE OF JOSE MIGUEL GARCIA LOMBARDÍA MADRID NIHIL PRIUS FIDE 

EXHIBIT I 

TO THE 

MASTER AGREEMENT FOR FINANCIAL TRANSACTIONS 

between 

THE ROYAL BANK OF SCOTLAND PLC (hereinafter, “RBS”) 

and FINANZAS DOS, S.A. (hereinafter, the “Client”) 

December 21, 2006 

	[initials]

	31

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	- 2 -

1. Late Interest Rate. For purposes of the determination of the Late Interest Rate defined in Clause 1.2., the applicable spread shall be 2%. 

With respect to the definition of “Late Interest Rate,” the Parties expressly agree to delete the wording of the phrase “that shall be the sum of the 1-day interbank rate in the currency in which the payment should have been made that the creditor Party thereof has not received, plus the spread set forth in Exhibit I ” and replace it with the following wording: “that shall be the sum of the 1-day EONIA in the currency in which the payment should have been made that the creditor Party thereof has not received, plus the spread set forth in Exhibit I. For purposes of this Master Agreement, EONIA shall be understood to be the Euro Overnight Index Average calculated by the European Central Bank and published by BRIDGE. ” 

2. Settlement by Netting. For the purposes of Clause Five, the Parties set forth that settlement by netting shall not be applicable to two or more Transactions, except as expressly agreed upon by the Parties. 

3. Domicile for Confirmations and Notifications. 

RBS sets forth as its domicile for Confirmations and notifications: 

	Name of the Institution 	  	The Royal Bank of Scotland plc 
	To the attention of: 	  	C/O RBS Financial Markets, Derivatives’ Confirmations Department 
	Domicile: 	  	Level 4, 135 Bishopsgate, London EC 2M 3UR 
	Telephone: 	  	+ 44 20 7375 5000 
	Fax: 	  	+ 44 20 7375 5050 
	  
	  
	The Client sets forth as its domicile for Confirmations and notifications: 
	Name of the Institution 	  	FINANZAS DOS, S.A. 
	To the attention of: 	  	Juan Gallardo/José Ángel Tejero 
	Domicile: 	  	Avda. Europa, 18 
			Parque Empresarial La Moraleja
	  	  	28108 Alcobendas 

	[initials]

32

	 	[seal:] 

NIHIL PRIUS FIDE 

COLLEGES OF NOTARIES OF SPAIN

[seal:] NOTARIAL OFFICE OF JOSE MIGUEL GARCIA LOMBARDÍA MADRID NIHIL PRIUS FIDE 

	  	  	Madrid 
	Telephone: 	  	91 663 2355 
	Fax: 	  	91 663 2929 

4. Guarantee. The Parties expressly acknowledge that the obligations that derive for the Client from this Agreement shall be guaranteed pursuant to the provisions set forth in the Coordination Agreement and Guarantees dated December 21, 2006 (the “Guarantees Agreement”) entered into in connection with the Commercial Loan Agreement by and between the Client and the Lending Institutions on December 21, 2006 (the “Loan Agreement”), regardless of whether such guarantees were granted by the Client or by third parties. For greater clarity, the Guarantees Agreement is incorporated by reference into this agreement, and it shall be part of this Master Agreement with respect to the Guarantees granted by the Client and by third parties in favor of RBS to secure the obligations deriving therefrom. 

5. Guarantor. Those that pertain in each case pursuant to the provisions set forth in paragraph 4 above. 

6. Calculation Agent. The Calculation Agent shall be RBS. Breach of the Calculation Agent’s obligations shall not in any case be deemed Grounds for Accelerated Maturity due to Circumstances Imputable to the Parties among those set forth in Clause 9, nor Grounds for Accelerated Maturity due to the Occurrence of Objective Circumstances among those set forth in Clause 10 of this Master Agreement. 

7. Maximum Amount. For the purposes of Clause 9.6.1. and/or 9.6.2., Maximum Amount is set forth as any amount for the Client. Clause 9.6 shall apply exclusively to the Client. 

8. Documents to be Delivered. For the purposes of Clause 16.4., the Parties undertake to deliver the following documentation: 

	         Copies of the instruments conferring powers 	  	Yes 
	     upon the signatories, duly recorded in the 	  	  
	     Commercial Registry. 	  	  
	  
	Signature acknowledgement pages or cards or 	  	Yes 
	     photocopies of the identity documents of the 	  	  
	     signatories showing their signatures clearly. 	  	  

9. Situations of Insolvency. For purposes of the provisions set forth in Clauses 9.7.2. and 9.7.5., an amount equal to or greater than any amount for the Client is set forth. 

10. Other Grounds for Accelerated Maturity due to Circumstances Imputable to the Parties. 

Pursuant to the provisions set forth in Clause 9.11., the Parties set forth the

	[initials]

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following additional Grounds for Accelerated Maturity due to Circumstances Imputable to the Parties: 

10.1 In the event that any of the Grounds for Accelerated Maturity set forth in Clause 27 of the Loan Agreement should occur and such grounds have not been cured by the deadline set forth therein. Thus, the Grounds for Accelerated Maturity described in Clause 27 of the Loan Agreement shall be deemed additional Grounds for Accelerated Maturity of the Master Agreement. The Client expressly acknowledges that consideration as grounds for accelerated maturity for purposes of this clause shall not be altered by the circumstance resulting in the grounds for accelerated maturity in question also occurring for any other third parties other than the Client, and, therefore, that all the circumstances and breaches described in the Loan Agreement as constituting Grounds for Accelerated Maturity shall imply the application of this agreement, regardless of whether or not these circumstances or breaches affect or are due to any other third parties other than the Client. For these purposes and for greater clarity, the references made in said Clause 27 of the Loan Agreement to the Borrower and to the Agent or to the Lending Institutions shall be understood to be made to the Master Agreement, to the Client and to RBS, respectively, when this is applicable. Specifically, the references made therein to the Agent or to the Majority of Lending Institutions shall be understood to be made to RBS for the purposes set forth herein. 

11. Other Grounds for Accelerated Maturity of Transactions due to Objective Circumstances that Have Arisen. Pursuant to the provisions set forth in Clause 10.3., the Parties set forth the following additional Grounds for Accelerated Maturity of Transactions due to Objective Circumstances that Have Arisen: 

	Illegality that has arisen, when, subsequent to the execution date of a Transaction, new legal or regulatory provisions applicable thereto are adopted or the legal or administrative interpretation of such provisions is modified so that it becomes illegal for either of the Parties (hereinafter, the “Affected Party”) to make or receive the payment or delivery due pursuant to such Financial Transaction, or to perform any other obligation deriving therefrom.

	The foregoing shall not apply when the illegality is triggered as a result of the breach by either of the Parties of the obligation to keep all the authorizations necessary pursuant to this Agreement in force. 

12. Specified Institutions. For all purposes set forth in the Agreement:

	RBS designates as Specified Institutions: None. 

The Client designates as Specified Institutions: None

13. Certain Financial Agreements. For the purposes of Clause 9.5., “Certain Financial Agreements” shall be understood to be the Loan Agreement and the Coordination Agreement and Guarantees identified in paragraph 4 above and all such agreements as are directly related to the financing extended under such loan. 

14. Retroactive Effects. For purposes of the provisions set forth in Clause 21.1., the effects of this Master Agreement take effect as from the date set forth in the heading, and no prior Transaction entered into by and between the Client and RBS is covered hereunder. 

	[initials]

34

	 	[seal:] 

NIHIL PRIUS FIDE 

COLLEGES OF NOTARIES OF SPAIN

[seal:] NOTARIAL OFFICE OF JOSE MIGUEL GARCIA LOMBARDÍA MADRID NIHIL PRIUS FIDE 

15.          Jurisdiction. For any issues and disputes that may arise with respect to the validity, interpretation or performance of this agreement, or of the confirmations of the transactions that may be executed hereunder, the Parties, expressly waiving their own jurisdiction and any other jurisdiction to which they may be entitled, submit to the jurisdiction and competence of the Courts and Tribunals of Madrid. 

	16.      	Additional Provisions. 
	 
	16.1      	The Parties state that certain spelling errors have occurred in Exhibit II DEFINITIONS FOR THE INTERPRETATION OF THE CONFIRMATIONS DOCUMENTED PURSUANT TO THE MASTER AGREEMENT FOR FINANCIAL TRANSACTIONS and agree to the correction thereof as set forth below: 
	 
	 
	 	(i)      In the definition of “Floor Amount Payable,” the formula for the calculation thereof set forth in Exhibit II is deemed replaced by the following formula:
	 
	 	CPF = IT x (TPF - TR) x PR 
	 	 	100 x N 
	 
	 	(ii)      The definition of Floor Amount Payable that is set forth in Exhibit II to this Agreement is modified by the Parties as follows: 
	 
	 	The last sentence of said definition shall read as follows: 
	 
	 	“The resulting amount shall only be enforced in the event that the Benchmark Rate is lower than the Floor Rate.” 
	 
	16.2      	Voluntary Accelerated Maturity of the Loan Agreement. 
	 
	 	(a)      If, pursuant to the terms and conditions set forth in the Loan Agreement, the accelerated maturity of the entire loan should be triggered, the Client undertakes, if RBS should so request, to cancel the Transactions subject to this Master Agreement at the time or once such accelerated maturity is triggered. For such purposes, the Parties agree that the provisions set forth in Clause 14 of the Master Agreement shall apply, and RBS shall be deemed the Party not in breach. Any costs incurred as a result of the cancellation or accelerated maturity of all the open Transactions shall be for account of the Client. 
	 
	 	(b)      If, pursuant to the terms and conditions set forth in the Loan Agreement, any partial accelerated maturity thereof should be triggered, the Client undertakes, if RBS should so request, to modify the terms of the Transactions executed pursuant to this Master Agreement to whatever extent should be necessary, and in particular reducing the notional amount thereof proportionally to the repayment made, such that the financial equivalence for the two Parties is maintained at all times. Any costs incurred as a result of the partial cancellation or accelerated maturity of such Transactions shall be for account of the Client. 
	 
	 
	16.4      	Incorporation by Reference. 
	 
	 	The provisions set forth in the Payments Clause, in the Representations and Warranties Clause, in the Obligations Clause, in the Change of 
	 

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Circumstances Clause and in the Taxes Clause of the Loan Agreement shall apply to this Master Agreement mutatis mutandis and are incorporated by reference. Nonetheless, in these cases as well as in any other incorporations by reference to the Clauses of the Loan Agreement mentioned in this Master Agreement, the references made in such Clauses to the Agreement to the Borrower and to the Agent or to the Lending Institutions shall be understood to be made to the Master Agreement, to the Client and to RBS, respectively, when this is applicable. The guarantees and promises of guarantees executed pursuant to the Guarantees’ Agreement on this same date before the Notary of Madrid Mr. José Miguel García Lombardía (“Guarantees”) secure or shall secure, as appropriate, the performance of the obligations that for the Client and in favor of RBS derive from this Master Agreement and from the Transactions formalized hereunder, pursuant to the terms agreed upon by the Parties. 

16.5 Additional Obligations of the Parties. 

(a) Maintain this Master Agreement and the rights deriving therefrom for RBS with at least the same preferences, privileges and seniority as those deriving or that could derive for the Lending Institutions pursuant to the Loan Agreement. 

(b) Extend to RBS, in its capacity as counterparty under this Master Agreement, any Guarantee that the Client may grant in connection with the Loan Agreement. 

(c) The Parties undertake not to disclose to third parties any information whatsoever with respect to this Agreement, except in response to a court or administrative order or to comply with applicable law. Such prohibition shall not apply to third parties interested in acquiring a participation in this Agreement who are eligible to do so pursuant to the provision set forth herein, provided that such third parties have executed the pertinent confidentiality agreement. 

16.6 “Settlement Currency” means the euro. 

16.7 Taxes. Any payments to be made pursuant to this Agreement shall be made with no prior deductions or withholdings for or on account of any Tax, unless such deduction or withholding is required by law. In the event that either of the Parties should be required by law to deduct or withhold, it shall so notify the other Party immediately, providing notice at least fifteen (15) Business Days prior to the next payment date. Moreover, the Party that is required by law to deduct or withhold shall send to the other Party a certificate or similar document evidencing the payment of the Tax to the appropriate tax authorities. 

In the event that the Party that is required by law to deduct or withhold should fail to notify the other Party of its obligation at least fifteen (15) Business Days prior to the next payment date, the Party that must make the deduction or withholding shall pay the other Party, together with the amounts owed under this Agreement, the additional amounts necessary for the other Party to receive a net amount equivalent to the total amount it would have received had there been no deduction or withholding. 

17. Awareness of the Risks Associated with the Transactions. The Parties agree to replace paragraph 16.6 of Clause Sixteen of the Master Agreement with the following: 

“The Parties state they are fully aware of the risk of volatility inherent in the execution of Transactions whose market value may fluctuate rapidly as a result of fluctuations in interest rates, exchange rates or other parameters relevant to the financial markets. They further state that they are aware that the obligations

	[initials]

36

	 	[seal:] 

NIHIL PRIUS FIDE 

COLLEGES OF NOTARIES OF SPAIN

[seal:] NOTARIAL OFFICE OF JOSE MIGUEL GARCIA LOMBARDÍA MADRID NIHIL PRIUS FIDE 

deriving from the Transactions require appropriate actions and constant monitoring of the trend of the financial markets and of the positions that the Parties take thereon, for which sufficient means and knowledge regarding the operation of such markets are necessary. 

Each of the Parties represents that it is acting on its own behalf, and that in order to enter into the Transactions it has made its own decisions and performed its own estimates and calculations of risks, as well as the pertinent analysis to determine if the Transaction is appropriate for it according to its own judgment and that of its advisors, when it has deemed appropriate the intervention of such advisors. Each of the Parties represents that it is not based on any communication whatsoever (either verbal or written) from the other party in the form of financial advice nor has it been advised by the other Party regarding the benefits or advisability of executing any of the Transactions. In this regard, the information about and explanation of the terms and conditions of a Transaction shall not be deemed financial advice or a recommendation to execute the Transaction. No communication (either verbal or written) received from the other Party shall be deemed a guarantee or commitment regarding the expected results of the Transaction. 

The Parties represent that they are capable of assessing the risks of each Transaction (either on their own or with the help of financial advisors) and they represent that they are aware of and accept the risks that they assume and that they have the capacity to assume such risks. 

Finally, the Parties represent that they are familiar with the recommendation of the Basel Committee of the Bank for International Settlements with respect to the advisability of entering into the financial Transactions that are the purpose of this Agreement under master agreements that set forth the existence of a single business relationship for purposes of termination and settlement, as appropriate, of the contractual positions of the Parties, notwithstanding the coexistence within such single business relationship of several financial transactions.” 

18. Enforcement procedures. 

(a) Loan account and evidentiary value of the balance due and payable. 

For purposes of this Master Agreement, RBS will open a special account to record accruals and payments pursuant to this Master Agreement and monitor the balance thereof at all times. 

Notations pertaining to amounts accrued but not yet due may be posted each day or all at once for any period of time. 

The Client acknowledges and expressly accepts that the balances resulting from the aforementioned credit account, duly certified by RBS shall be valid as evidence in court, barring any error, pursuant to the express agreement set forth in the following paragraph. 

(b) Calculation of the balance due and payable and court enforcement. 

The Parties expressly agree that the calculation to determine the liquid, due and payable amount owed by the Client to RBS pursuant to this Master Agreement (pursuant to articles 571 and 572 of Law 1/2000, of January 7, on Civil Procedure), for purposes of the payment and of the enforcement action or for purposes of in- or out-of-court claims, shall be performed by RBS. To such end, RBS shall issue the pertinent certification, including the balance owed by the Client to RBS, pursuant to a

	37

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	- 8 -

calculation of the loan account referred to in the foregoing paragraph. The amount due and payable resulting from such calculation shall be notified to the Client pursuant to the provisions set forth in Article 572.2, end, of said law. 

The certificate or first copy of the instrument including the confirmation or, as appropriate, this Master Agreement, issued including the formalities set forth in Law 1/2000, of January 7, on Civil Procedure shall be an enforceable instrument, and it shall be accompanied by the following documents:

a. Certification issued by the Notary that has issued the certificate or notarized the instrument evidencing that such certificate or instrument agrees with the entries in his/her Log Book and the date of such entries. 

b. The certification referred to in the first paragraph of this section stating the balance of the account resulting from the calculation made by RBS. The Notary acting at the request of RBS shall evidence in said certification that the calculation of the Client’s debt was performed in the fashion agreed upon by the Parties set forth in this Master Agreement. 

c. The statement of the debit and credit entries and those pertaining to the application of interest that determine the specific balance for which enforcement is sought. 

d. The document evidencing having notified the Client the amount due and payable pursuant to the provisions set forth in the first paragraph of this section. 

All taxes, expenses and customs duties that may accrue or may be incurred in connection with the notarial instruments referred to in the foregoing paragraph shall be for account of the Client. 

In witness whereof, the Parties execute this Exhibit, which, for all pertinent intents and purposes, shall be deemed an integral part of the Master Agreement, in two copies, in the place and on the date indicated at the beginning. 

	FINANZAS DOS S.A. 	  	THE ROYAL BANK OF SCOTLAND PLC 
	  
	/s/ Juan Gallardo Cruces 	  	[signature] 	  	[signature] 
	

		

		

	Mr. Juan Gallardo Cruces 	  	  	  	  

38

	[seal:] 
	NIHIL PRIUS FIDE 
	COLLEGES OF NOTARIES OF SPAIN 
	  
	                   [seal:] NOTARIAL OFFICE OF JOSE MIGUEL GARCIA LOMBARDÍA MADRID 
	                                   NIHIL PRIUS FIDE 
	  
	/s/ José Ángel Tejero Santos 
	

	Mr. José Ángel Tejero Santos 

	39

PD1450395

EXHIBIT I 

TO THE 

MASTER AGREEMENT FOR FINANCIAL TRANSACTIONS

 between

 CALYON, BRANCH IN SPAIN (hereinafter, “CALYON”) 

and 

FINANZAS DOS, S.A. (hereinafter, the “Client”) 

December 21, 2006 

	[initials]

40

	 	[seal:] 

NIHIL PRIUS FIDE 

COLLEGES OF NOTARIES OF SPAIN

[seal:] NOTARIAL OFFICE OF JOSE MIGUEL GARCIA LOMBARDÍA MADRID NIHIL PRIUS FIDE 

	- 2 -

1. Late Interest Rate. For purposes of the determination of the Late Interest Rate defined in Clause 1.2., the applicable spread shall be 2%. 

2. Settlement by Netting. For the purposes of Clause Five, the Parties set forth that settlement by netting shall not be applicable to two or more Transactions, except as expressly agreed upon by the Parties. 

3. Domicile for Confirmations and Notifications. 

CALYON sets forth as its domicile for Confirmations and notifications: 

	Name of the Institution 	  	CALYON 
	To the attention of: 	  	Timothy Bermejo/Jesús Alocén 
	Domicile: 	  	Paseo de la Castellana, 1 (28046 MADRID) 
	Telephone: 	  	91.432.73.95 
	Fax: 	  	91.432.75.02 
			
	  
	The Client sets forth as its domicile for Confirmations and notifications: 
	Name of the Institution 	  	FINANZAS DOS, S.A. 
	To the attention of: 	  	Mr. Juan Gallardo/Mr. José Ángel Tejero 
	Domicile: 	  	Avda. Europa, 18, –28108 MADRID 
	Telephone: 	  	91.663.23.55 
	Fax: 	  	91.663.29.29 

4. Guarantee. The Parties expressly acknowledge that the obligations that derive for the Client from this Agreement shall be guaranteed pursuant to the provisions set forth in the Coordination Agreement and Guarantees dated December 21, 2006 (the “Guarantees Agreement”) entered into in connection with the Commercial Loan Agreement by and between the Client and the Lending Institutions on December 21, 2006 (the “Loan Agreement”), regardless of whether such guarantees were granted by the Client or by third parties. For greater clarity, the Guarantees Agreement is incorporated by reference into this agreement, and it shall be part of this Master Agreement with respect to the Guarantees granted by the Client and by third parties in favor of CALYON to secure the obligations deriving therefrom. 

5. Guarantor. Those that pertain in each case pursuant to the provisions set forth in paragraph 4 above. 

			
	[initials] 	  	41 
	  	  	PD1450394 

	- 3 -

6. Calculation Agent. The Calculation Agent shall be CALYON. Breach of the Calculation Agent’s obligations shall not in any case be deemed Grounds for Accelerated Maturity due to Circumstances Imputable to the Parties among those set forth in Clause 9, nor Grounds for Accelerated Maturity due to the Occurrence of Objective Circumstances among those set forth in Clause 10 of this Master Agreement. 

7. Maximum Amount. Not applicable. 

8. Documents to be Delivered. For the purposes of Clause 16.4., the Parties undertake to deliver the following documentation: 

	     Copies of the instruments conferring powers 	  	Yes 
	     upon the signatories, duly recorded in the 	  	  
	     Commercial Registry. 	  	  
		  	  
	     Signature acknowledgement pages or cards or 	  	Yes 
	     photocopies of the identity documents of the 	  	  
	     signatories showing their signatures clearly. 	  	  

9. Situations of Insolvency. For purposes of the provisions set forth in Clauses 9.7.2. and 9.7.5. , an amount pursuant to the provisions set forth in the Financing Agreement executed on this same date or the equivalent thereof in any other currency for CALYON and any amount fo the Client is set forth. 

10. Other Grounds for Accelerated Maturity due to Circumstances Imputable to the Parties. Pursuant to the provisions set forth in Clause 9.11., the Parties set forth the following additional Grounds for Accelerated Maturity due to Circumstances Imputable to the Parties: 

In the event that any of the Grounds for Accelerated Maturity set forth in Clause 27 of the Loan Agreement should occur and such grounds have not been cured by the deadline set forth therein. Thus, the Grounds for Accelerated Maturity described in Clause 27 of the Loan Agreement shall be deemed additional Grounds for Accelerated Maturity of the Master Agreement. The Client expressly acknowledges that consideration as grounds for accelerated maturity for purposes of this clause shall not be altered by the circumstance resulting in the grounds for accelerated maturity in question also occurring for any other third parties other than the Client, and, therefore, that all the circumstances and breaches described in the Loan Agreement as constituting Grounds for Accelerated Maturity shall imply the application of this agreement, regardless of whether or not these circumstances or breaches affect or are due to any other third parties other than the Client. For these purposes and for greater clarity, the references made in said Clause 27 of the Loan Agreement to the Borrower and to the Agent or to the Lending Institutions shall be understood to be made to the Master Agreement, to the Client and to CALYON, respectively, when this is applicable. Specifically, the references made therein to the Agent or to the Majority of Lending Institutions shall be understood to be made to CALYON for the purposes set forth herein. 

11. Other Grounds for Accelerated Maturity of Transactions due to Objective Circumstances that Have Arisen. Pursuant to the provisions set forth in Clause 10.3., the Parties set forth the following additional Grounds for Accelerated Maturity of Transactions due to Objective Circumstances that Have Arisen: Not Applicable. 

	[initials]

42

	 	[seal:] 

NIHIL PRIUS FIDE 

COLLEGES OF NOTARIES OF SPAIN

[seal:] NOTARIAL OFFICE OF JOSE MIGUEL GARCIA LOMBARDÍA MADRID NIHIL PRIUS FIDE 

	- 4 -

Increase in Costs or Decrease in the Amounts Receivable as a Result of a Regulatory Change 

In the event that subsequent to the date that the Master Agreement takes effect there is a regulatory change as a result of which the cost that either of the Parties must bear (such Party being the Affected Party) to maintain the Transaction entered into, or to maintain or renew its deposits directly related to such Transaction, is increased due to expenses, taxes (including any credit, exemption or non-application no longer applying), required return of currency, coefficients, reserves or deposits, or any other cause. 

Force Majeur 

In the event that subsequent to the date that the Master Agreement takes effect a natural disaster or other cause of Force Majeur occurs that prevents one Party (which shall be the Affected Party) from: 

(a) performing any obligation, making a payment or delivery, or receiving a payment or delivery with respect to a Transaction, or complying with any other substantial Clause of the Master Agreement with respect to such Transaction; or 

(b) performing any contingent or other type of obligation that such Party may have with respect to any document in connection with a Transaction. 

12. Specified Institutions. For all purposes set forth in the Agreement: 

CALYON designates as Specified Institutions: None. 

The Client designates as Specified Institutions: None 

13. Certain Financial Agreements. For the purposes of Clause 9.5., “Certain Financial Agreements” shall be understood to be the Loan Agreement and the Coordination Agreement and Guarantees identified in paragraph 4 above and all such agreements as are directly related to the financing extended under such loan. 

14. Retroactive Effects. For purposes of the provisions set forth in Clause 21.1., the effects of this Master Agreement take effect as from the date set forth in the heading, and no prior Transaction entered into by and between the Client and CALYON is covered hereunder. 

15. Jurisdiction. For any issues and disputes that may arise with respect to the validity, interpretation or performance of this agreement, or of the confirmations of the transactions that may be executed hereunder, the Parties, expressly waiving their own jurisdiction and any other jurisdiction to which they may be entitled, submit to the jurisdiction and competence of the Courts and Tribunals of Madrid. 

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	16.      	Additional Provisions. 
	 
	16.1      	The Parties state that certain spelling errors have occurred in Exhibit II DEFINITIONS FOR THE INTERPRETATION OF THE CONFIRMATIONS DOCUMENTED PURSUANT TO THE 
	 
	 	MASTER AGREEMENT FOR FINANCIAL TRANSACTIONS and agree to the correction thereof as set forth below: 
	 
	 	(i)      In the definition of “Floor Amount Payable,” the formula for the calculation thereof set forth in Exhibit II is deemed replaced by the following formula: 
	
	 	CPF = IT x (TPF - TR) x PR 
	 	 	100 x N 
	 
	 	(ii)      The definition of “Floor Amount Payable” that is set forth in Exhibit II to this Agreement is modified by the Parties as follows: 
	 
	 	The last sentence of said definition shall read as follows: 
	 
	 	“The resulting amount shall only be enforced in the event that the Benchmark Rate is lower than the Floor Rate.” 
	 
	16.2      	Negative Interest Rates. 
	 
	 	The Parties agree that, if in a given Calculation Period for a Transaction, either of the two Parties should be bound to pay a Floating Amount and such amount turns out to be a negative amount (the “Negative Rate Payer”), and that is because of any of the following circumstances: (i) due to a quoted negative Floating Rate or (ii) due to the application of a Spread to the Floating Rate, then the Floating Amount payable by the Negative Rate Payer for that Calculation Period shall be deemed to be zero. And, in turn, the Party that, in principle, will receive such negative Floating Amount (the “Receiver of Negative Rate”) will have to pay the Negative Rate Payer the absolute value of the negative Floating Amount according to its calculation, in addition to any other amount owed for that Calculation Period with respect to that Transaction on the Settlement Date on which the Floating Amount would have been due if it had been a positive number. 
	 
	 	Any other amount payable by the Receiver of Negative Rate with respect to the absolute value of the negative Floating Amount shall be made in the currency in which the Floating Amount would have been paid if it had been an Amount with a positive sign, without taking into account the currency in which the Receiver of Negative Rate would have been bound to make its payments and into the amount designated by the institution receiving such payment. 
	 
	16.3      	Voluntary Accelerated Maturity of the Loan Agreement. 
	 
	 	(a)      If, pursuant to the terms and conditions set forth in the Loan Agreement, the accelerated maturity of the entire loan should be triggered, the Client undertakes, if CALYON should so request, to cancel the Transactions subject to this Master Agreement at the time or once such accelerated maturity is triggered. For such purposes, the Parties agree that the provisions set forth in Clause 14 of the Master Agreement shall apply, and CALYON shall be deemed the Party not in breach. Any costs incurred as a result of the cancellation 
	 
	 

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44

	 	[seal:] 

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COLLEGES OF NOTARIES OF SPAIN

[seal:] NOTARIAL OFFICE OF JOSE MIGUEL GARCIA LOMBARDÍA MADRID NIHIL PRIUS FIDE 

	- 6 -

or accelerated maturity of all the open Transactions shall be for account of the Client. 

(b) If, pursuant to the terms and conditions set forth in the Loan Agreement, any partial accelerated maturity thereof should be triggered, the Client undertakes, if CALYON should so request, to modify the terms of the Transactions executed pursuant to this Master Agreement to whatever extent should be necessary, and in particular reducing the notional amount thereof proportionally to the repayment made, such that the financial equivalence for the two Parties is maintained at all times. Any costs incurred as a result of the partial cancellation or accelerated maturity of such Transactions shall be for account of the Client. 

16.4 Incorporation by Reference. 

The provisions set forth in the Payments Clause, in the Representations and Warranties Clause, in the Obligations Clause, in the Change of Circumstances Clause and in the Taxes Clause of the Loan Agreement shall apply to this Master Agreement mutatis mutandis and are incorporated by reference. Nonetheless, in these cases as well as in any other incorporations by reference to the Clauses of the Loan Agreement mentioned in this Master Agreement, the references made in such Clauses to the Agreement to the Borrower and to the Agent or to the Lending Institutions shall be understood to be made to the Master Agreement, to the Client and to CALYON, respectively, when this is applicable. The guarantees and promises of guarantees executed pursuant to the Guarantees Agreement on this same date before the Notary of Madrid Mr. José Miguel García Lombardía (“Guarantees”) secure or shall secure, as appropriate, the performance of the obligations that for the Client and in favor of CALYON derive from this Master Agreement and from the Transactions formalized hereunder, pursuant to the terms agreed upon by the Parties. 

16.5 Additional Obligations of the Parties. 

(a) Maintain this Master Agreement and the rights deriving therefrom for CALYON with at least the same preferences, privileges and seniority as those deriving or that could derive for the Lending Institutions pursuant to the Loan Agreement. 

(b) Extend to CALYON, in its capacity as counterparty under this Master Agreement, any Guarantee that the Client may grant in connection with the Loan Agreement. 

(c) The Parties undertake not to disclose to third parties any information whatsoever with respect to this Agreement, except in response to a court or administrative order or to comply with applicable law. Such prohibition shall not apply to third parties interested in acquiring a participation in this Agreement who are eligible to do so pursuant to the provision set forth herein, provided that such third parties have executed the pertinent confidentiality agreement. 

17. Awareness of the Risks Associated with the Transactions. The Parties agree to replace paragraph 16.6 of Clause Sixteen of the Master Agreement with the following: 

“The Parties state they are fully aware of the risk of volatility inherent in the execution of Transactions whose market value may fluctuate rapidly as a result of fluctuations in interest rates, exchange rates or other parameters

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relevant to the financial markets. They further state that they are aware that the obligations deriving from the Transactions require appropriate actions and constant monitoring of the trend of the financial markets and of the positions that the Parties take thereon, for which sufficient means and knowledge regarding the operation of such markets are necessary. 

Each of the Parties represents that it is acting on its own behalf, and that in order to enter into the Transactions it has made its own decisions and performed its own estimates and calculations of risks, as well as the pertinent analysis to determine if the Transaction is appropriate for it according to its own judgment and that of its advisors, when it has deemed appropriate the intervention of such advisors. Each of the Parties represents that it is not based on any communication whatsoever (either verbal or written) from the other party in the form of financial advice nor has it been advised by the other Party regarding the benefits or advisability of executing any of the Transactions. In this regard, the information about and explanation of the terms and conditions of a Transaction shall not be deemed financial advice or a recommendation to execute the Transaction. No communication (either verbal or written) received from the other Party shall be deemed a guarantee or commitment regarding the expected results of the Transaction. 

The Parties represent that they are capable of assessing the risks of each Transaction (either on their own or with the help of financial advisors) and they represent that they are aware of and accept the risks that they assume and that they have the capacity to assume such risks. 

Finally, the Parties represent that they are familiar with the recommendation of the Basel Committee of the Bank for International Settlements with respect to the advisability of entering into the financial Transactions that are the purpose of this Agreement under master agreements that set forth the existence of a single business relationship for purposes of termination and settlement, as appropriate, of the contractual positions of the Parties, notwithstanding the coexistence within such single business relationship of several financial transactions.” 

	18.      	Modifications to the Master Agreement. 
	 
	18.1      	Modifications to Clause 1.2. 
	 
	 	The definition of “Settlement Currency” included in Clause 1.2 of the Master Agreement shall read as follows: 
	 	“‘Settlement Currency’ means the euro.” 
	 
	18.2      	Modifications to Clause 9.7 
	 
	 	All references in Clause 9.7 to the declaration of suspension of payments or bankruptcy or a proceeding for reduction of amount or extension of time shall be understood to be made pursuant to the provisions of Law 22/2003 of July 9 on the declaration of concurso [Spanish bankruptcy proceedings]. 
	 

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	18.3      	Modifications to Clause 17 (“Assignment”). 
	 
	 	The parties agree to new wording for Clause SEVENTEEN, which as of now shall read as follows: 
	 
	 	“ACCIONA [sic] expressly consents to the total or partial assignment of this agreement of CALYON, BRANCH IN SPAIN in favor of its head office, CALYON, and, as appropriate, in favor of any other third party that is part of the Group.” 
	 
	19.      	Representations. 
	 
	 	For the purposes set forth in Clause 9.4 of the Master Agreement, each of the Parties represents that: 
	 
	 	(i)      	It is a company duly established and operating validly pursuant to the laws of the countries in which it was established. 
	 
	 	(ii)      	It has full capacity to execute the Master Agreement and any other document related thereto, as well as to perform the obligations deriving therefrom, having adopted all the resolutions and taken all the actions necessary for the proper execution and performance thereof. 
	 
	 	(iii)      	Neither the aforementioned execution or performance violate any law that is applicable to it, any Clause of its articles of incorporation or any Clause of its Bylaws, any court or administrative ruling that is applicable to it, or any contractual limitation to which it is subject. 
	 
	 	(iv)      	The obligations undertaken by it pursuant to the Master Agreement are legal, valid and binding pursuant to the terms thereof (subject to bankruptcy law and any other similar applicable laws that may affect the rights of creditors in general). 
	 
	 	(v)      	No Grounds for Accelerated Maturity due to Circumstances Imputable to the Parties or, to the best of its knowledge and belief, no Grounds for Accelerated Maturity due to the Occurrence of Objective Circumstances, have been triggered or persist with respect to it and no such grounds shall be triggered as a result of the execution and performance of the Master Agreement. 
	 
	 	(vi)      	All the information provided to the other Party pursuant to the provisions set forth in paragraph 8 of this Exhibit is true and complete in all its substantial aspects. 
	 

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	20. Enforcement procedures.

	(a)      	Loan account and evidentiary value of the balance due and payable. 
	 
	 	For purposes of this Master Agreement, CALYON will open a special account to record accruals and payments pursuant to this Master Agreement and monitor the balance thereof at all times. 
	 
	 	Notations pertaining to amounts accrued but not yet due may be posted each day or all at once for any period of time. 
	 
	 	The Client acknowledges and expressly accepts that the balances resulting from the aforementioned credit account, duly certified by CALYON shall be valid as evidence in court, barring any error, pursuant to the express agreement set forth in the following paragraph. 
	 
	(b)      	Calculation of the balance due and payable and court enforcement. 
	 
	 	The Parties expressly agree that the calculation to determine the liquid, due and payable amount owed by the Client to CALYON pursuant to this Master Agreement (pursuant to articles 571 and 572 of Law 1/2000, of January 7, on Civil Procedure), for purposes of the payment and of the enforcement action or for purposes of in- or out-of-court claims, shall be performed by CALYON. To such end, CALYON shall issue the pertinent certification, including the balance owed by the Client to CALYON, pursuant to a calculation of the loan account referred to in the foregoing paragraph. The amount due and payable resulting from such calculation shall be notified to the Client pursuant to the provisions set forth in Article 572.2, end, of said law. 
	 
	 
	 
	 	The certificate or first copy of the instrument including the confirmation or, as appropriate, this Master Agreement, issued including the formalities set forth in Law 1/2000, of January 7, on Civil Procedure shall be an enforceable instrument, and it shall be accompanied by the following documents: 
	 
	 	a. The certification referred to in the first paragraph of this section stating the balance of the account resulting from the calculation made by CALYON. The Notary acting at the request of CALYON shall evidence in said certification that the calculation of the Client’s debt was performed in the fashion agreed upon by the Parties set forth in this Master Agreement. 
	 
	 
	 	b. The statement of the debit and credit entries and those pertaining to the application of interest that determines the specific balance for which enforcement is sought. 
	 
	 	c. The document evidencing having notified the Client the amount due and payable pursuant to the provisions set forth in the first paragraph of this section. 
	 
	 	All taxes, expenses and customs duties that may accrue or may be incurred in connection with the notarial instruments referred to in the foregoing paragraph shall be for account of the Client. 
	 

	21. Intervention by a Notary

Either of the Parties may ask the other, once or several times, to proceed to have recorded in a public deed the Confirmations pertaining to the Transactions

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entered into pursuant to this Master Agreement (which is recorded in a public deed on the date of its execution). Each Party undertakes, once the request from the other Party is received, to proceed to such recording in a public deed within five (5) Business Days from the date the other Party makes the request. The taxes, expenses and customs duties incurred as a result of such recording in a public deed shall in any case be for account of the BORROWER.

The content of this Financing Agreement having been found in order and approved by the Parties as it reads, it is issued for a single purpose in a single copy for recording in a public deed comprising 29 folios (including the exhibits) written only on the front, they agree to sign only below their pertinent signature clarifications.

	FINANZAS DOS S.A.	CALYON, BRANCH IN SPAIN
	 
	/s/ Juan Gallardo 	/s/ Rolando Menor
	Mr. Juan Gallardo	Mr. Rolando Menor
	 
	/s/ José Ángel Tejero Santos	/s/ Javier Álvarez-Rendueles
	Mr. José Ángel Tejero Santos	Mr. Javier Álvarez-Rendueles

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EXHIBIT I 

TO THE 

     MASTER AGREEMENT FOR FINANCIAL TRANSACTIONS 

between 

BANCO BILBAO VIZCAYA ARGENTARIA, S.A. (hereinafter, “BBVA”) 

and 

FINANZAS DOS, S.A. (hereinafter, the “Client”) 

December 21, 2006 

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1. Late Interest Rate. For purposes of the determination of the Late Interest Rate defined in Clause 1.2., the applicable spread shall be 2%. 

2. Settlement by Netting. For the purposes of Clause Five, the Parties set forth that settlement by netting shall not be applicable to two or more Transactions, except as expressly agreed upon by the Parties. 

3. Domicile for Confirmations and Notifications. 

BBVA sets forth as its domicile for Confirmations and notifications: 

	Name of the Institution 	  	BANCO BILBAO VIZCAYA ARGENTARIA, S.A. 
	To the attention of: 	  	Alicia García Alejano/Celina Carvajal 
	Domicile: 	  	Vía de los Poblados no number 28033 Madrid 
	Telephone: 	  	91 374 84 65/91 537 83 14 
	Fax: 	  	91 374 09 55/91 537 05 66 
			
			
	The Client sets forth as its domicile for Confirmations and notifications: 
	Name of the Institution 	  	FINANZAS DOS, S.A. 
	To the attention of: 	  	Juan Gallardo/José Ángel Tejero 
	Domicile: 	  	Avda. Europa, 18 
	  	  	Parque Empresarial La Moraleja 
			28108 Alcobendas
	Telephone: 	  	91 663 2355 
	Fax: 	  	91 663 2929 

4. Guarantee. The Parties expressly acknowledge that the obligations that derive for the Client from this Agreement shall be guaranteed pursuant to the provisions set forth in the Coordination Agreement and Guarantees dated December 21, 2006 (the “Guarantees Agreement”) entered into in connection with the Commercial Loan Agreement by and between the Client and the Lending Institutions on December 21, 2006 (the “Loan Agreement”), regardless of whether such guarantees were granted by the Client or by third parties. For greater clarity, the Guarantees Agreement is incorporated by reference into this agreement, 

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and it shall be part of this Master Agreement with respect to the Guarantees granted by the Client and by third parties in favor of BBVA to secure the obligations deriving therefrom. 

5. Guarantor. Those that pertain in each case pursuant to the provisions set forth in paragraph 4 above. 

6. Calculation Agent. The Calculation Agent shall be BBVA. Breach of the Calculation Agent’s obligations shall not in any case be deemed Grounds for Accelerated Maturity due to Circumstances Imputable to the Parties among those set forth in Clause 9, nor Grounds for Accelerated Maturity due to the Occurrence of Objective Circumstances among those set forth in Clause 10 of this Master Agreement. 

7. Maximum Amount. For the purposes of Clause 9.6.1. and/or 9.6.2., Maximum Amount is set forth as an amount equal to or greater than one hundred million euros (€ 100,000,000) or the equivalent thereof in any other currency for BBVA and any amount for the Client. 

	8. 	  	Documents to be Delivered. For the purposes of Clause 16.4., the Parties undertake to deliver the following documentation: 
		  	  
	       Copies of the instruments conferring powers 	  	Yes 
	  	  	upon the signatories, duly recorded in the 	  	  
	  	  	Commercial Registry. 	  	  
	  
	       Signature acknowledgement pages or cards or 	  	Yes 
	  	  	photocopies of the identity documents of the 	  	  
	  	  	signatories showing their signatures clearly. 	  	  

9. Situations of Insolvency. For purposes of the provisions set forth in Clauses 9.7.2. and 9.7.5., an amount equal to or greater than one hundred million euros (€ 100,000,000) or the equivalent thereof in any other currency for BBVA and any amount for the Client. 

10. Other Grounds for Accelerated Maturity due to Circumstances Imputable to the Parties. Pursuant to the provisions set forth in Clause 9.11. , the Parties set forth the following additional Grounds for Accelerated Maturity due to Circumstances Imputable to the Parties: 

10.1 In the event that any of the Grounds for Accelerated Maturity set forth in Clause 27 of the Loan Agreement should occur and such grounds have not been cured by the deadline set forth therein. Thus, the Grounds for Accelerated Maturity described in Clause 27 of the Loan Agreement shall be deemed additional Grounds for Accelerated Maturity of the Master Agreement. The Client expressly acknowledges that consideration as grounds for accelerated maturity for purposes of this clause shall not be altered by the circumstance resulting in the grounds for accelerated maturity in question also occurring for any other third parties other than the Client, and, therefore, that all the circumstances and breaches described in the Loan Agreement as constituting Grounds for Accelerated Maturity shall imply the application of this agreement, regardless of whether or not these

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circumstances or breaches affect or are due to any other third parties other than the Client. For these purposes and for greater clarity, the references made in said Clause 27 of the Loan Agreement to the Borrower and to the Agent or to the Lending Institutions shall be understood to be made to the Master Agreement, to the Client and to BBVA, respectively, when this is applicable. Specifically, the references made therein to the Agent or to the Majority of Lending Institutions shall be understood to be made to BBVA for the purposes set forth herein. 

11. Other Grounds for Accelerated Maturity of Transactions due to Objective Circumstances that Have Arisen. Pursuant to the provisions set forth in Clause 10.3., the Parties set forth the following additional Grounds for Accelerated Maturity of Transactions due to Objective Circumstances that Have Arisen: Not Applicable. 

12. Specified Institutions. For all purposes set forth in the Agreement: 

BBVA designates as Specified Institutions: None.

The Client designates as Specified Institutions: None 

13. Certain Financial Agreements. For the purposes of Clause 9.5., “Certain Financial Agreements” shall be understood to be the Loan Agreement and the Coordination Agreement and Guarantees identified in paragraph 4 above and all such agreements as are directly related to the financing extended under such loan. 

14. Retroactive Effects. For purposes of the provisions set forth in Clause 21.1. , the effects of this Master Agreement take effect as from the date set forth in the heading, and no prior Transaction entered into by and between the Client and BBVA is covered hereunder. 

15. Jurisdiction. For any issues and disputes that may arise with respect to the validity, interpretation or performance of this agreement, or of the confirmations of the transactions that may be executed hereunder, the Parties, expressly waiving their own jurisdiction and any other jurisdiction to which they may be entitled, submit to the jurisdiction and competence of the Courts and Tribunals of Madrid. 

16. Additional Provisions. 

16.1 The Parties state that certain spelling errors have occurred in Exhibit II DEFINITIONS FOR THE INTERPRETATION OF THE CONFIRMATIONS DOCUMENTED PURSUANT TO THE MASTER AGREEMENT FOR FINANCIAL TRANSACTIONS and agree to the correction thereof as set forth below: 

(i) In the definition of “Floor Amount Payable,” the formula for the calculation thereof set forth in Exhibit II is deemed replaced by the following formula:

CPF = IT x (TPF - TR) x PR 

                100 x N

(ii) The definition of “Floor Amount Payable” that is set forth in Exhibit II to this Agreement is modified by the Parties as follows: 

The last sentence of said definition shall read as follows: 

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	 	“The resulting amount shall only be enforced in the event that the Benchmark Rate is lower than the Floor Rate.” 
	 
	16.2      	Negative Interest Rates. 
	 
	 	The Parties agree that, if in a given Calculation Period for a Transaction, either of the two Parties should be bound to pay a Floating Amount and such amount turns out to be a negative amount (the “Negative Rate Payer”), and that is because of any of the following circumstances: (i) due to a quoted negative Floating Rate or (ii) due to the application of a Spread to the Floating Rate, then the Floating Amount payable by the Negative Rate Payer for that Calculation Period shall be deemed to be zero. And, in turn, the Party that, in principle, will receive such negative Floating Amount (the “Receiver of Negative Rate”) will have to pay the Negative Rate Payer the absolute value of the negative Floating Amount according to its calculation, in addition to any other amount owed for that Calculation Period with respect to that Transaction on the Settlement Date on which the Floating Amount would have been due if it had been a positive number. 
	 
	 	Any other amount payable by the Receiver of Negative Rate with respect to the absolute value of the negative Floating Amount shall be made in the currency in which the Floating Amount would have been paid if it had been an Amount with a positive sign, without taking into account the currency in which the Receiver of Negative Rate would have been bound to make its payments and into the amount designated by the institution receiving such payment. 
	 
	16.3      	Voluntary Accelerated Maturity of the Loan Agreement. 
	 
	 	(a)      If, pursuant to the terms and conditions set forth in the Loan Agreement, the accelerated maturity of the entire loan should be triggered, the Client undertakes, if BBVA should so request, to cancel the Transactions subject to this Master Agreement at the time or once such accelerated maturity is triggered. For such purposes, the Parties agree that the provisions set forth in Clause 14 of the Master Agreement shall apply, and BBVA shall be deemed the Party not in breach. Any costs incurred as a result of the cancellation or accelerated maturity of all the open Transactions shall be for account of the Client. 
	 
	 	(b)      If, pursuant to the terms and conditions set forth in the Loan Agreement, any partial accelerated maturity thereof should be triggered, the Client undertakes, if BBVA should so request, to modify the terms of the Transactions executed pursuant to this Master Agreement to whatever extent should be necessary, and in particular reducing the notional amount thereof proportionally to the repayment made, such that the financial equivalence for the two Parties is maintained at all times. Any costs incurred as a result of the partial cancellation or accelerated maturity of such Transactions shall be for account of the Client. 
	 
	 
	16.4      	Incorporation by Reference. 
	 
	 	The provisions set forth in the Payments Clause, in the Representations and Warranties Clause, in the Obligations Clause, in the Change of Circumstances Clause and in the Taxes Clause of the Loan Agreement shall apply to this Master Agreement mutatis mutandis and are incorporated by reference. Nonetheless, in these cases as well as in any other incorporations by reference to the Clauses of the Loan Agreement mentioned in this Master Agreement, the references made in such Clauses to the Agreement to the Borrower and to the Agent or to the 
	 

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	 	Lending Institutions shall be understood to be made to the Master Agreement, to the Client and to BBVA, respectively, when this is applicable. The guarantees and promises of guarantees executed pursuant to the Guarantees Agreement on this same date before the Notary of Madrid Mr. José Miguel García Lombardía (“Guarantees”) secure or shall secure, as appropriate, the performance of the obligations that for the Client and in favor of BBVA derive from this Master Agreement and from the Transactions formalized hereunder, pursuant to the terms agreed upon by the Parties. 
	 
	16.5      	Additional Obligations of the Parties. 
	 
	 	(a) Maintain this Master Agreement and the rights deriving therefrom for BBVA with at least the same preferences, privileges and seniority as those deriving or that could derive for the Lending Institutions pursuant to the Loan Agreement. 
	 
	 	(b) Extend to BBVA, in its capacity as counterparty under this Master Agreement, any Guarantee that the Client may grant in connection with the Loan Agreement. 
	 
	 	(c) The Parties undertake not to disclose to third parties any information whatsoever with respect to this Agreement, except in response to a court or administrative order or to comply with applicable law. Such prohibition shall not apply to third parties interested in acquiring a participation in this Agreement who are eligible to do so pursuant to the provision set forth herein, provided that such third parties have executed the pertinent confidentiality agreement. 
	 
	17.      	Awareness of the Risks Associated with the Transactions. The Parties agree to replace paragraph 16.6 of Clause Sixteen of the Master Agreement with the following: 
	 

“The Parties state they are fully aware of the risk of volatility inherent in the execution of Transactions whose market value may fluctuate rapidly as a result of fluctuations in interest rates, exchange rates or other parameters relevant to the financial markets. They further state that they are aware that the obligations deriving from the Transactions require appropriate actions and constant monitoring of the trend of the financial markets and of the positions that the Parties take thereon, for which sufficient means and knowledge regarding the operation of such markets are necessary. 

Each of the Parties represents that it is acting on its own behalf, and that in order to enter into the Transactions it has made its own decisions and performed its own estimates and calculations of risks, as well as the pertinent analysis to determine if the Transaction is appropriate for it according to its own judgment and that of its advisors, when it has deemed appropriate the intervention of such advisors. Each of the Parties represents that it is not based on any communication whatsoever (either verbal or written) from the other party in the form of financial advice nor has it been advised by the other Party regarding the benefits or advisability of executing any of the Transactions. In this regard, the information about and explanation of the terms and conditions of a Transaction shall not be deemed financial advice or a recommendation to execute the Transaction. No communication (either verbal or written) received from the other Party shall be deemed a guarantee or commitment regarding the expected results of the Transaction. 

The Parties represent that they are capable of assessing the risks of each Transaction (either on their own or with the help of financial advisors) and they represent that they are aware of and accept the risks that they assume and that they have the capacity to assume such risks. 

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Finally, the Parties represent that they are familiar with the recommendation of the Basel Committee of the Bank for International Settlements with respect to the advisability of entering into the financial Transactions that are the purpose of this Agreement under master agreements that set forth the existence of a single business relationship for purposes of termination and settlement, as appropriate, of the contractual positions of the Parties, notwithstanding the coexistence within such single business relationship of several financial transactions.” 

18. Enforcement procedures. 

(a) Loan account and evidentiary value of the balance due and payable. 

For purposes of this Master Agreement, BBVA will open a special account to record accruals and payments pursuant to this Master Agreement and monitor the balance thereof at all times. 

Notations pertaining to amounts accrued but not yet due may be posted each day or all at once for any period of time. 

The Client acknowledges and expressly accepts that the balances resulting from the aforementioned credit account, duly certified by BBVA shall be valid as evidence in court, barring any error, pursuant to the express agreement set forth in the following paragraph. 

(b) Calculation of the balance due and payable and court enforcement. 

The Parties expressly agree that the calculation to determine the liquid, due and payable amount owed by the Client to BBVA pursuant to this Master Agreement (pursuant to articles 571 and 572 of Law 1/2000, of January 7, on Civil Procedure), for purposes of the payment and of the enforcement action or for purposes of in- or out-of-court claims, shall be performed by BBVA. To such end, BBVA shall issue the pertinent certification, including the balance owed by the Client to BBVA, pursuant to a calculation of the loan account referred to in the foregoing paragraph. The amount due and payable resulting from such calculation shall be notified to the Client pursuant to the provisions set forth in Article 572.2, end, of said law. 

The certificate or first copy of the instrument including the confirmation or, as appropriate, this Master Agreement, issued including the formalities set forth in Law 1/2000, of January 7, on Civil Procedure shall be an enforceable instrument, and it shall be accompanied by the following documents:

a. Certification issued by the Notary that has issued the certificate or notarized the instrument evidencing that such certificate or instrument agrees with the entries in his/her Log Book and the date of such entries. 

b. The certification referred to in the first paragraph of this section stating the balance of the account resulting from the calculation made by BBVA. The Notary acting at the request of RBS shall evidence in said certification that the calculation of the Client’s debt was performed in the fashion agreed upon by the Parties set forth in this Master Agreement. 

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c. The statement of the debit and credit entries and those pertaining to the application of interest that determine the specific balance for which enforcement is sought.

d. The document evidencing having notified the Client the amount due and payable pursuant to the provisions set forth in the first paragraph of this section.

All taxes, expenses and customs duties that may accrue or may be incurred in connection with the notarial instruments referred to in the foregoing paragraph shall be for account of the Client.

In witness whereof, the Parties execute this Exhibit, which, for all pertinent intents and purposes, shall be deemed an integral part of the Master Agreement, in two copies, in the place and on the date indicated at the beginning.

	FINANZAS DOS S.A.	 	                   BBVA
	 
	/s/ Juan Gallardo Cruces 	 	/s/ Juan Gortázar Sánchez-Torres 
	

		

	Mr. Juan Gallardo Cruces	 	Mr. Juan Gortázar Sánchez-Torres
	 
	/s/ Juan Gortázar Sánchez-Torres 	 	/s/ Fernando Vázquez de la Puerta
	

		

	Mr. José Ángel Tejero Santos	 	Mr. Fernando Vázquez de la Puerta
	 	 	 

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EXHIBIT I 

TO THE 

MASTER AGREEMENT FOR FINANCIAL TRANSACTIONS 

between 

BANCA IMI S.P.A. (hereinafter, "IMI") 

and 

FINANZAS DOS, S.A. (hereinafter, the "Client") 

December 21, 2006 

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1. Late Interest Rate. For purposes of the determination of the Late Interest Rate defined in Clause 1.2., the applicable spread shall be 2%. 

2. Settlement by Netting. For the purposes of Clause Five, the Parties set forth that settlement by netting shall not be applicable to two or more Transactions, except as expressly agreed upon by the Parties. 

3. Domicile for Confirmations and Notifications. 

IMI sets forth as its domicile for Confirmations and notifications: 

	Name of the Institution 	  	BANCA IMI S.P.A. 
	To the attention of: 	  	Riccardo Lamanna 
	Domicile: 	  	Corso Matteotti, 6 20121 Milan 
	Telephone: 	  	+39 02 7751 2413 
	Fax: 	  	+39 02 7751 92413 
			
	The Client sets forth as its domicile for Confirmations and notifications: 
	Name of the Institution 	  	FINANZAS DOS, S.A. 
	To the attention of: 	  	Juan Gallardo / José Ángel Tejero 
	Domicile: 	  	Avda. Europa, 18 
	  	  	Parque Empresarial La Moraleja 
	  	  	28108 Alcobendas 
	  	  	Madrid 
	Telephone: 	  	91 663 2355 
	Fax: 	  	91 663 2929 

4. Guarantee. The Parties expressly acknowledge that the obligations that derive for the Client from this Agreement shall be guaranteed pursuant to the provisions set forth in the Coordination Agreement and Guarantees dated December 21, 2006 [the "Guarantees Agreement") entered into in connection with the Commercial Loan Agreement by and between the Client and the Lending Institutions on December 21, 2006 [the "Loan Agreement"), regardless of whether such guarantees were granted by the Client or by third parties. For greater clarity, the Guarantees Agreement is incorporated by reference into this agreement, and

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it shall be part of this Master Agreement with respect to the Guarantees granted by the Client and by third parties in favor of IMI to secure the obligations deriving therefrom. 

5. Guarantor. Those that pertain in each case pursuant to the provisions set forth in paragraph 4 above. 

6. Calculation Agent. The Calculation Agent shall be IMI. Breach of the Calculation Agent’s obligations shall not in any case be deemed Grounds for Accelerated Maturity due to Circumstances Imputable to the Parties among those set forth in Clause 9, nor Grounds for Accelerated Maturity due to the Occurrence of Objective Circumstances among those set forth in Clause 10 of this Master Agreement. 

7. Maximum Amount. For the purposes of Clause 9.6.1. and/or 9.6.2. , Maximum Amount is set forth as an amount equal to or greater than one hundred million euros (€ 100,000,000) or the equivalent thereof in any other currency for IMI and any amount for the Client. 

	8. 	  	         Documents to be Delivered. For the purposes of Clause 16.4., the Parties undertake to deliver the 
	following documentation: 	  	  
	  
	 Copies of the instruments conferring powers 	  	Yes 
	  	  	upon the signatories, duly recorded in the 	  	  
	  	  	Commercial Registry. 	  	  
	 Signature acknowledgement pages or cards or 	  	Yes 
	  	  	photocopies of the identity documents of the 	  	  
	  	  	signatories showing their signatures clearly. 	  	  

9. Situations of Insolvency. For purposes of the provisions set forth in Clauses 9.7.2. and 9.7.5., an amount equal to or greater than one hundred million euros (€ 100,000,000) or the equivalent thereof in any other currency for IMI and any amount for the Client is set forth. 

10. Other Grounds for Accelerated Maturity due to Circumstances Imputable to the Parties.

Pursuant to the provisions set forth in Clause 9.11., the Parties set forth the following additional Grounds for Accelerated Maturity due to Circumstances Imputable to the Parties: 

10.1 In the event that any of the Grounds for Accelerated Maturity set forth in Clause 27 of the Loan Agreement should occur and such grounds have not been cured by the deadline set forth therein. Thus, the Grounds for Accelerated Maturity described in Clause 27 of the Loan Agreement shall be deemed additional Grounds for Accelerated Maturity of the Master Agreement. The Client expressly acknowledges that consideration as grounds for accelerated maturity for purposes of this clause shall not be altered by the circumstance resulting in the grounds for accelerated maturity in question also occurring for any other third parties other than the Client, and, therefore, that all the circumstances and breaches described in the Loan Agreement as constituting Grounds for Accelerated Maturity shall imply the application of this agreement, regardless of whether or not these

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circumstances or breaches affect or are due to any other third parties other than the Client. For these purposes and for greater clarity, the references made in said Clause 27 of the Loan Agreement to the Borrower and to the Agent or to the Lending Institutions shall be understood to be made to the Master Agreement, to the Client and to IMI, respectively, when this is applicable. Specifically, the references made therein to the Agent or to the Majority of Lending Institutions shall be understood to be made to IMI for the purposes set forth herein. 

11. Other Grounds for Accelerated Maturity of Transactions due to Objective Circumstances that Have Arisen. Pursuant to the provisions set forth in Clause 10.3., the Parties set forth the following additional Grounds for Accelerated Maturity of Transactions due to Objective Circumstances that Have Arisen: Not Applicable. 

12. Specified Institutions. For all purposes set forth in the Agreement: 

IMI designates as Specified Institutions: None. 

The Client designates as Specified Institutions: None 

13. Certain Financial Agreements. For the purposes of Clause 9.5., “Certain Financial Agreements” shall be understood to be the Loan Agreement and the Coordination Agreement and Guarantees identified in paragraph 4 above and all such agreements as are directly related to the financing extended under such loan. 

14. Retroactive Effects. For purposes of the provisions set forth in Clause 21.1., the effects of this Master Agreement take effect as from the date set forth in the heading, and no prior Transaction entered into by and between the Client and IMI is covered hereunder. 

15. Jurisdiction. For any issues and disputes that may arise with respect to the validity, interpretation or performance of this agreement, or of the confirmations of the transactions that may be executed hereunder, the Parties, expressly waiving their own jurisdiction and any other jurisdiction to which they may be entitled, submit to the jurisdiction and competence of the Courts and Tribunals of Madrid. 

	16.      	Additional Provisions. 
	 
	16.1      	The Parties state that certain spelling errors have occurred in Exhibit II DEFINITIONS FOR THE INTERPRETATION OF THE CONFIRMATIONS DOCUMENTED PURSUANT TO THE MASTER AGREEMENT FOR FINANCIAL TRANSACTIONS and agree to the correction thereof as set forth below: 
	 
	 	(i)  In the definition of “Floor Amount Payable,” the formula for the calculation thereof set forth in Exhibit II is deemed replaced by the following formula: 
	 
	 	CPF = IT x (TPF - TR) x PR 
	 	 	100 x N 
	 
	 	(ii)  The definition of “Floor Amount Payable” that is set forth in Exhibit II to this Agreement is modified by the Parties as follows: 
	 
	 	The last sentence of said definition shall read as follows: 
	 

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	 	“The resulting amount shall only be enforced in the event that the Benchmark Rate is lower than the Floor Rate.” 
	 
	16.2.      	Negative Interest Rates. 
	 
	 	The Parties agree that, if in a given Calculation Period for a Transaction, either of the two Parties should be bound to pay a Floating Amount and such amount turns out to be a negative amount (the “Negative Rate Payer"), and that is because of any of the following circumstances: (i) due to a quoted negative Floating Rate or (ii) due to the application of a Spread to the Floating Rate, then the Floating Amount payable by the Negative Rate Payer for that Calculation Period shall be deemed to be zero. And, in turn, the Party that, in principle, will receive such negative Floating Amount (the "Receiver of Negative Rate") will have to pay the Negative Rate Payer the absolute value of the negative Floating Amount according to its calculation, in addition to any other amount owed for that Calculation Period with respect to that Transaction on the Settlement Date on which the Floating Amount would have been due if it had been a positive number. 
	 
	 	Any other amount payable by the Receiver of Negative Rate with respect to the absolute value of the negative Floating Amount shall be made in the currency in which the Floating Amount would have been paid if it had been an Amount with a positive sign, without taking into account the currency in which the Receiver of Negative Rate would have been bound to make its payments and into the amount designated by the institution receiving such payment. 
	 
	16.3.      	Voluntary Accelerated Maturity of the Loan Agreement. 
	 
	 	(a)      If, pursuant to the terms and conditions set forth in the Loan Agreement, the accelerated maturity of the entire loan should be triggered, the Client undertakes, if IMI should so request, to cancel the Transactions subject to this Master Agreement at the time or once such accelerated maturity is triggered. For such purposes, the Parties agree that the provisions set forth in Clause 14 of the Master Agreement shall apply, and IMI shall be deemed the Party not in breach. Any costs incurred as a result of the cancellation or accelerated maturity of all the open Transactions shall be for account of the Client. 
	 
	 	(b)      If, pursuant to the terms and conditions set forth in the Loan Agreement, any partial ccelerated maturity thereof should be triggered, the Client undertakes, if IMI should so request, to modify the terms of the Transactions executed pursuant to this Master Agreement to whatever extent should be necessary, and in particular reducing the notional amount thereof proportionally to the repayment made, such that the financial equivalence for the two Parties is maintained at all times. Any costs incurred as a result of the partial cancellation or accelerated maturity of such Transactions shall be for account of the Client. 
	 
	16.4.      	Incorporation by Reference. 
	 
	 	The provisions set forth in the Payments Clause, in the Representations and Warranties Clause, in the Obligations Clause, in the Change of Circumstances Clause and in the Taxes Clause of the Loan Agreement shall apply to this Master Agreement mutatis mutandis and are incorporated by reference. Nonetheless, in these cases as well as in any other incorporations by reference to the Clauses of the Loan Agreement mentioned in this Master Agreement, the references made in such Clauses to the Agreement to the Borrower and to the Agent or to the 
	 

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Lending Institutions shall be understood to be made to the Master Agreement, to the Client and to IMI, respectively, when this is applicable. The guarantees and promises of guarantees executed pursuant to the Guarantees Agreement on this same date before the Notary of Madrid Mr. José Miguel García Lombardía (“Guarantees”) secure or shall secure, as appropriate, the performance of the obligations that for the Client and in favor of IMI derive from this Master Agreement and from the Transactions formalized hereunder, pursuant to the terms agreed upon by the Parties. 

16.5. Additional Obligations of the Parties. 

          (a) Maintain this Master Agreement and the rights deriving therefrom for IMI with at least the same preferences, privileges and seniority as those deriving or that could derive for the Lending Institutions pursuant to the Loan Agreement. 

(b) Extend to IMI, in its capacity as counterparty under this Master Agreement, any Guarantee that the Client may grant in connection with the Loan Agreement. 

(c) The Parties undertake not to disclose to third parties any information whatsoever with respect to this Agreement, except in response to a court or administrative order or to comply with applicable law. Such prohibition shall not apply to third parties interested in acquiring a participation in this Agreement who are eligible to do so pursuant to the provision set forth herein, provided that such third parties have executed the pertinent confidentiality agreement. 

17. Awareness of the Risks Associated with the Transactions. The Parties agree to replace paragraph 16.6 of Clause Sixteen of the Master Agreement with the following: 

"The Parties state they are fully aware of the risk of volatility inherent in the execution of Transactions whose market value may fluctuate rapidly as a result of fluctuations in interest rates, exchange rates or other parameters relevant to the financial markets. They further state that they are aware that the obligations deriving from the Transactions require appropriate actions and constant monitoring of the trend of the financial markets and of the positions that the Parties take thereon, for which sufficient means and knowledge regarding the operation of such markets are necessary. 

Each of the Parties represents that it is acting on its own behalf, and that in order to enter into the Transactions it has made its own decisions and performed its own estimates and calculations of risks, as well as the pertinent analysis to determine if the Transaction is appropriate for it according to its own judgment and that of its advisors, when it has deemed appropriate the intervention of such advisors. Each of the Parties represents that it is not based on any communication whatsoever (either verbal or written) from the other party in the form of financial advice nor has it been advised by the other Party regarding the benefits or advisability of executing any of the Transactions. In this regard, the information about and explanation of the terms and conditions of a Transaction shall not be deemed financial advice or a recommendation to execute the Transaction. No communication (either verbal or written) received from the other Party shall be deemed a guarantee or commitment regarding the expected results of the Transaction. 

The Parties represent that they are capable of assessing the risks of each Transaction (either on their own or with the help of financial advisors) and they represent that they are aware of and accept the risks that they assume and that they have the capacity to assume such risks. 

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Finally, the Parties represent that they are familiar with the recommendation of the Basel Committee of the Bank for International Settlements with respect to the advisability of entering into the financial Transactions that are the purpose of this Agreement under master agreements that set forth the existence of a single business relationship for purposes of termination and settlement, as appropriate, of the contractual positions of the Parties, notwithstanding the coexistence within such single business relationship of several financial transactions." 

	18. Enforcement procedures.

	(a)      	Loan account and evidentiary value of the balance due and payable. 
	 
	 	For purposes of this Master Agreement, IMI will open a special account to record accruals and payments pursuant to this Master Agreement and monitor the balance thereof at all times. 
	 
	 	Notations pertaining to amounts accrued but not yet due may be posted each day or all at once for any period of time. 
	 
	 	The Client acknowledges and expressly accepts that the balances resulting from the aforementioned credit account, duly certified by IMI shall be valid as evidence in court, barring any error, pursuant to the express agreement set forth in the following paragraph. 
	 
	(b)      	Calculation of the balance due and payable and court enforcement. 
	 
	 	The Parties expressly agree that the calculation to determine the liquid, due and payable amount owed by the Client to IMI pursuant to this Master Agreement (pursuant to articles 571 and 572 of Law 1/2000, of January 7, on Civil Procedure), for purposes of the payment and of the enforcement action or for purposes of in- or out-of-court claims, shall be performed by IMI. To such end, IMI shall issue the pertinent certification, including the balance owed by the Client to IMI, pursuant to a calculation of the loan account referred to in the foregoing paragraph. The amount due and payable resulting from such calculation shall be notified to the Client pursuant to the provisions set forth in Article 572.2, end, of said law. 
	 
	 	The certificate or first copy of the instrument including the confirmation or, as appropriate, this Master Agreement, issued including the formalities set forth in Law 1/2000, of January 7, on Civil Procedure shall be an enforceable instrument, and it shall be accompanied by the following documents: 
	 
	 	a.      	Certification issued by the Notary that has issued the certificate or notarized the instrument evidencing that such certificate or instrument agrees with the entries in his/her Log Book and the date of such entries. 
	 
	 	b.      	The certification referred to in the first paragraph of this section stating the balance of the account resulting from the calculation made by IMI. The Notary acting at the request of IMI shall evidence in said certification that the calculation of the Client’s debt was performed in the fashion agreed upon by the Parties set forth in this Master Agreement. 
	 
	 	c.      	The statement of the debit and credit entries and those pertaining to the application of interest that determine the specific balance for which enforcement is sought. 
	 

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          d. The document evidencing having notified the Client the amount due and payable pursuant to the provisions set forth in the first paragraph of this section. 

          All taxes, expenses and customs duties that may accrue or may be incurred in connection with the notarial instruments referred to in the foregoing paragraph shall be for account of the Client. 

In witness whereof, the Parties execute this Exhibit, which, for all pertinent intents and purposes, shall be deemed an integral part of the Master Agreement, in two copies, in the place and on the date indicated at the beginning. 

	FINANZAS DOS S.A. 	                   BANCA IMI S.P.A. 
	  
	/s/ Juan Gallardo Cruces 	/s/ José Guardo Galdón 
	Mr. Juan Gallardo Cruces 	Mr. José Guardo Galdón 
	  
	/s/ José Ángel Tejero Santos 	  
	Mr. José Ángel Tejero Santos 	  

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EXHIBIT I 

TO THE 

MASTER AGREEMENT FOR FINANCIAL TRANSACTIONS 

between 

NATEXIS BANQUES POPULAIRES, BRANCH IN SPAIN (hereinafter, "NATEXIS") 

and 

FINANZAS DOS, S.A. (hereinafter, the "Client") 

December 21, 2006 

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1. Late Interest Rate. For purposes of the determination of the Late Interest Rate defined in Clause 1.2. , the applicable spread shall be 2%. 

2. Settlement by Netting. For the purposes of Clause Five, the Parties set forth that settlement by netting shall not be applicable to two or more Transactions, except as expressly agreed upon by the Parties. 

3. Domicile for Confirmations and Notifications. 

NATEXIS BANQUES POPULAIRES, BRANCH IN SPAIN sets forth as its domicile for Confirmations and notifications: 

	Name of the Institution 	  	NAT[E]XIS 
	To the attention of: 	  	Mr. Delobel/Mrs. André 
	Domicile: 	  	115 rue Montmartre - 75002 Paris 
	Telephone: 	  	33 1 58 32 64 80 
	Fax: 	  	33 1 58 32 55 33 
			
			
	The Client sets forth as its domicile for Confirmations and notifications: 
	Name of the Institution 	  	FINANZAS DOS, S.A. 
	To the attention of: 	  	Juan Gallardo / José Ángel Tejero 
	Domicile: 	  	Avda. Europa, 18 
	  	  	Parque Empresarial La Moraleja 
	  	  	28108 Alcobendas 
	  	  	Madrid 
	Telephone: 	  	91 663 2355 
	Fax: 	  	91 663 2929 

4. Guarantee. The Parties expressly acknowledge that the obligations that derive for the Client from this Agreement shall be guaranteed pursuant to the provisions set forth in the Coordination Agreement and Guarantees dated December 21, 2006 [the "Guarantees Agreement") entered into in connection with the Commercial Loan Agreement by and between the Client and the Lending Institutions on December 21, 2006 [the "Loan Agreement"), regardless of whether such guarantees were granted by the Client or by third parties. For greater clarity, the Guarantees Agreement is incorporated by reference into this agreement, and it shall be part of this Master Agreement with respect to the Guarantees granted by the Client and by third parties in favor of NAT[E]XIS to secure the obligations deriving therefrom. 

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5. Guarantor. Those that pertain in each case pursuant to the provisions set forth in paragraph 4 above. 

6. Calculation Agent. The Calculation Agent shall be NATEXIS BANQUES POPULAIRES, BRANCH IN SPAIN. Breach of the Calculation Agent’s obligations shall not in any case be deemed Grounds for Accelerated Maturity due to Circumstances Imputable to the Parties among those set forth in Clause 9, nor Grounds for Accelerated Maturity due to the Occurrence of Objective Circumstances among those set forth in Clause 10 of this Master Agreement. 

7. Maximum Amount. For the purposes of Clause 9.6.1. and/or 9.6.2., Maximum Amount is set forth as an amount equal to or greater than one hundred million euros (€ 100,000,000) or the equivalent thereof in any other currency for NATEXIS BANQUES POPULAIRES, BRANCH IN SPAIN and any amount for the Client. 

8. Documents to be Delivered. For the purposes of Clause 16.4., the Parties undertake to deliver the following documentation: 

	       Copies of the instruments conferring powers 	  	Yes 
	       upon the signatories, duly recorded in the 	  	  
	       Commercial Registry. 	  	  
	  
	Signature acknowledgement pages or cards or 	  	Yes 
	       photocopies of the identity documents of the 	  	  
	       signatories showing their signatures clearly. 	  	  

9. Situations of Insolvency. For purposes of the provisions set forth in Clauses 9.7.2. and 9.7.5., an amount equal to or greater than one hundred million euros (€ 100,000,000) or the equivalent thereof in any other currency for NATEXIS BANQUES POPULAIRES, BRANCH IN SPAIN and any amount for the Client is set forth. 

10. Other Grounds for Accelerated Maturity due to Circumstances Imputable to the Parties. Pursuant to the provisions set forth in Clause 9.11. , the Parties set forth the following additional Grounds for Accelerated Maturity due to Circumstances Imputable to the Parties: 

10.1 In the event that any of the Grounds for Accelerated Maturity set forth in Clause 27 of the Loan Agreement should occur and such grounds have not been cured by the deadline set forth therein. Thus, the Grounds for Accelerated Maturity described in Clause 27 of the Loan Agreement shall be deemed additional Grounds for Accelerated Maturity of the Master Agreement. The Client expressly acknowledges that consideration as grounds for accelerated maturity for purposes of this clause shall not be altered by the circumstance resulting in the grounds for accelerated maturity in question also occurring for any other third parties other than the Client, and, therefore, that all the circumstances and breaches described in the Loan Agreement as constituting Grounds for Accelerated Maturity shall imply the application of this agreement, regardless of whether or not these circumstances or breaches affect or are due to any other third parties other than the Client. For these purposes and for greater clarity, the references made in said Clause 27 of the Loan Agreement to the Borrower and to the Agent or to the Lending Institutions shall be understood to be made to the Master Agreement, to the Client and to NATEXIS BANQUES POPULAIRES, BRANCH IN SPAIN, respectively, when this is applicable. Specifically, the references made therein to the Agent or to the Majority of Lending Institutions shall be understood 

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to be made to NATEXIS BANQUES POPULAIRES, BRANCH IN SPAIN for the purposes set forth herein. 

11. Other Grounds for Accelerated Maturity of Transactions due to Objective Circumstances that Have Arisen. Pursuant to the provisions set forth in Clause 10.3., the Parties set forth the following additional Grounds for Accelerated Maturity of Transactions due to Objective Circumstances that Have Arisen: Not Applicable. 

12. Specified Institutions. For all purposes set forth in the Agreement: 

NATEXIS BANQUES POPULAIRES, BRANCH IN SPAIN designates as Specified Institutions: None. 

The Client designates as Specified Institutions: None 

13. Certain Financial Agreements. For the purposes of Clause 9.5., “Certain Financial Agreements” shall be understood to be the Loan Agreement and the Coordination Agreement and Guarantees identified in paragraph 4 above and all such agreements as are directly related to the financing extended under such loan. 

14. Retroactive Effects. For purposes of the provisions set forth in Clause 21.1., the effects of this Master Agreement take effect as from the date set forth in the heading, and no prior Transaction entered into by and between the Client and NATEXIS BANQUES POPULAIRES, BRANCH IN SPAIN is covered hereunder. 

15. Jurisdiction. For any issues and disputes that may arise with respect to the validity, interpretation or performance of this agreement, or of the confirmations of the transactions that may be executed hereunder, the Parties, expressly waiving their own jurisdiction and any other jurisdiction to which they may be entitled, submit to the jurisdiction and competence of the Courts and Tribunals of Madrid. 

16. Additional Provisions. 

16.1. The Parties state that certain spelling errors have occurred in Exhibit II DEFINITIONS FOR THE INTERPRETATION OF THE CONFIRMATIONS DOCUMENTED PURSUANT TO THE MASTER AGREEMENT FOR FINANCIAL TRANSACTIONS and agree to the correction thereof as set forth below: 

(i) In the definition of “Floor Amount Payable,” the formula for the calculation thereof set forth in Exhibit II is deemed replaced by the following formula:

CPF = IT x (TPF - TR) x PR 

                100 x N

(ii) The definition of “Floor Amount Payable” that is set forth in Exhibit II to this Agreement is modified by the Parties as follows: 

The last sentence of said definition shall read as follows: 

“The resulting amount shall only be enforced in the event that the Benchmark Rate is lower than the Floor Rate. ” 

16.2. Negative Interest Rates. 

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	 	The Parties agree that, if in a given Calculation Period for a Transaction, either of the two Parties should be bound to pay a Floating Amount and such amount turns out to be a negative amount (the “Negative Rate Payer"), and that is because of any of the following circumstances: (i) due to a quoted negative Floating Rate or (ii) due to the application of a Spread to the Floating Rate, then the Floating Amount payable by the Negative Rate Payer for that Calculation Period shall be deemed to be zero. And, in turn, the Party that, in principle, will receive such negative Floating Amount (the "Receiver of Negative Rate") will have to pay the Negative Rate Payer the absolute value of the negative Floating Amount according to its calculation, in addition to any other amount owed for that Calculation Period with respect to that Transaction on the Settlement Date on which the Floating Amount would have been due if it had been a positive number. 
	 
	 	Any other amount payable by the Receiver of Negative Rate with respect to the absolute value of the negative Floating Amount shall be made in the currency in which the Floating Amount would have been paid if it had been an Amount with a positive sign, without taking into account the currency in which the Receiver of Negative Rate would have been bound to make its payments and into the amount designated by the institution receiving such payment. 
	 
	16.3.      	Voluntary Accelerated Maturity of the Loan Agreement. 
	 
	 	(a)      	If, pursuant to the terms and conditions set forth in the Loan Agreement, the accelerated maturity of the entire loan should be triggered, the Client undertakes, if NATEXIS BANQUES POPULAIRES, BRANCH IN SPAIN should so request, to cancel the Transactions subject to this Master Agreement at the time or once such accelerated maturity is triggered. For such purposes, the Parties agree that the provisions set forth in Clause 14 of the Master Agreement shall apply, and NATEXIS BANQUES POPULAIRES, BRANCH IN SPAIN shall be deemed the Party not in breach. Any costs incurred as a result of the cancellation or accelerated maturity of all the open Transactions shall be for account of the Client. 
	 
	 	(b)      	If, pursuant to the terms and conditions set forth in the Loan Agreement, any partial accelerated maturity thereof should be triggered, the Client undertakes, if NATEXIS BANQUES POPULAIRES, BRANCH IN SPAIN should so request, to modify the terms of the Transactions executed pursuant to this Master Agreement to whatever extent should be necessary, and in particular reducing the notional amount thereof proportionally to the repayment made, such that the financial equivalence for the two Parties is maintained at all times. Any costs incurred as a result of the partial cancellation or accelerated maturity of such Transactions shall be for account of the Client. 
	 
	 	
	 
	16.4.      	Incorporation by Reference. 
	 
	 	The provisions set forth in the Payments Clause, in the Representations and Warranties Clause, in the Obligations Clause, in the Change of Circumstances Clause and in the Taxes Clause of the Loan Agreement shall apply to this Master Agreement mutatis mutandis and are incorporated by reference. Nonetheless, in these cases as well as in any other incorporations by reference to the Clauses of the Loan Agreement mentioned in this Master Agreement, the references made in such Clauses to the Agreement to the Borrower and to the Agent or to the Lending Institutions shall be understood to be made to the Master Agreement, to the Client and to NATEXIS 
	 

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BANQUES POPULAIRES, BRANCH IN SPAIN, respectively, when this is applicable. The guarantees and promises of guarantees executed pursuant to the Guarantees Agreement on this same date before the Notary of Madrid Mr. José Miguel García Lombardía (“Guarantees”) secure or shall secure, as appropriate, the performance of the obligations that for the Client and in favor of NATEXIS BANQUES POPULAIRES, BRANCH IN SPAIN derive from this Master Agreement and from the Transactions formalized hereunder, pursuant to the terms agreed upon by the Parties. 

16.5. Additional Obligations of the Parties. 

(a) Maintain this Master Agreement and the rights deriving therefrom for NATEXIS BANQUES POPULAIRES, BRANCH IN SPAIN with at least the same preferences, privileges and seniority as those deriving or that could derive for the Lending Institutions pursuant to the Loan Agreement. 

(b) Extend to NATEXIS BANQUES POPULAIRES, BRANCH IN SPAIN, in its capacity as counterparty under this Master Agreement, any Guarantee that the Client may grant in connection with the Loan Agreement. 

(c) The Parties undertake not to disclose to third parties any information whatsoever with respect to this Agreement, except in response to a court or administrative order or to comply with applicable law. Such prohibition shall not apply to third parties interested in acquiring a participation in this Agreement who are eligible to do so pursuant to the provision set forth herein, provided that such third parties have executed the pertinent confidentiality agreement. 

16. [sic] Awareness of the Risks Associated with the Transactions. The Parties agree to replace paragraph 16.6 of Clause Sixteen of the Master Agreement with the following: 

"The Parties state they are fully aware of the risk of volatility inherent in the execution of Transactions whose market value may fluctuate rapidly as a result of fluctuations in interest rates, exchange rates or other parameters relevant to the financial markets. They further state that they are aware that the obligations deriving from the Transactions require appropriate actions and constant monitoring of the trend of the financial markets and of the positions that the Parties take thereon, for which sufficient means and knowledge regarding the operation of such markets are necessary. 

Each of the Parties represents that it is acting on its own behalf, and that in order to enter into the Transactions it has made its own decisions and performed its own estimates and calculations of risks, as well as the pertinent analysis to determine if the Transaction is appropriate for it according to its own judgment and that of its advisors, when it has deemed appropriate the intervention of such advisors. Each of the Parties represents that it is not based on any communication whatsoever (either verbal or written) from the other party in the form of financial advice nor has it been advised by the other Party regarding the benefits or advisability of executing any of the Transactions. In this regard, the information about and explanation of the terms and conditions of a Transaction shall not be deemed financial advice or a recommendation to execute the Transaction. No communication (either verbal or written) received from the other Party shall be deemed a guarantee or commitment regarding the expected results of the Transaction. 

The Parties represent that they are capable of assessing the risks of each Transaction (either on their own or with the help of financial advisors) and they represent that they are aware of and accept the risks that they assume and that they have the capacity to assume such risks. 

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Finally, the Parties represent that they are familiar with the recommendation of the Basel Committee of the Bank for International Settlements with respect to the advisability of entering into the financial Transactions that are the purpose of this Agreement under master agreements that set forth the existence of a single business relationship for purposes of termination and settlement, as appropriate, of the contractual positions of the Parties, notwithstanding the coexistence within such single business relationship of several financial transactions." 

17. Enforcement procedures. 

(a) Loan account and evidentiary value of the balance due and payable. 

For purposes of this Master Agreement, NATEXIS BANQUES POPULAIRES, BRANCH IN SPAIN will open a special account to record accruals and payments pursuant to this Master Agreement and monitor the balance thereof at all times. 

Notations pertaining to amounts accrued but not yet due may be posted each day or all at once for any period of time. 

The Client acknowledges and expressly accepts that the balances resulting from the aforementioned credit account, duly certified by NATEXIS BANQUES POPULAIRES, BRANCH IN SPAIN shall be valid as evidence in court, barring any error, pursuant to the express agreement set forth in the following paragraph. 

(b) Calculation of the balance due and payable and court enforcement. 

The Parties expressly agree that the calculation to determine the liquid, due and payable amount owed by the Client to NATEXIS BANQUES POPULAIRES, BRANCH IN SPAIN pursuant to this Master Agreement (pursuant to articles 571 and 572 of Law 1/2000, of January 7, on Civil Procedure), for purposes of the payment and of the enforcement action or for purposes of in- or out-of-court claims, shall be performed by NATEXIS BANQUES POPULAIRES, BRANCH IN SPAIN. To such end, NATEXIS BANQUES POPULAIRES, BRANCH IN SPAIN shall issue the pertinent certification, including the balance owed by the Client to NATEXIS BANQUES POPULAIRES, BRANCH IN SPAIN, pursuant to a calculation of the loan account referred to in the foregoing paragraph. The amount due and payable resulting from such calculation shall be notified to the Client pursuant to the provisions set forth in Article 572.2, end, of said law. 

The certificate or first copy of the instrument including the confirmation or, as appropriate, this Master Agreement, issued including the formalities set forth in Law 1/2000, of January 7, on Civil Procedure shall be an enforceable instrument, and it shall be accompanied by the following documents:

a. Certification issued by the Notary that has issued the certificate or notarized the instrument evidencing that such certificate or instrument agrees with the entries in his/her Log Book and the date of such entries. 

b. The certification referred to in the first paragraph of this section stating the balance of the account resulting from the calculation made by NATEXIS BANQUES POPULAIRES, BRANCH IN SPAIN. The Notary acting at the request of NATEXIS BANQUES

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POPULAIRES, BRANCH IN SPAIN shall evidence in said certification that the calculation of the Client’s debt was performed in the fashion agreed upon by the Parties set forth in this Master Agreement. 

c. The statement of the debit and credit entries and those pertaining to the application of interest that determine the specific balance for which enforcement is sought. 

d. The document evidencing having notified the Client the amount due and payable pursuant to the provisions set forth in the first paragraph of this section. 

All taxes, expenses and customs duties that may accrue or may be incurred in connection with the notarial instruments referred to in the foregoing paragraph shall be for account of the Client. 

In witness whereof, the Parties execute this Exhibit, which, for all pertinent intents and purposes, shall be deemed an integral part of the Master Agreement, in two copies, in the place and on the date indicated at the beginning. 

	FINANZAS DOS, S.A. 	  	NATEXIS BANQUES POPULAIRES, BRANCH 
	  	  	IN SPAIN 
	  
	/s/ Juan Gallardo Cruces 	  	/s/ José Luis Sánchez García 
	

		

	Mr. Juan Gallardo Cruces 	  	Mr. José Luis Sánchez García 
	  
	/s/ José Ángel Tejero Santos 	  	/s/ Ricardo Teissiere Carrión 
	

		

	Mr. José Ángel Tejero Santos 	  	Mr. Ricardo Teissiere Carrión 

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MASTER AGREEMENT FOR FINANCIAL TRANSACTIONS 

This Master Agreement for Financial Transactions has been drafted by the Asociación Española de Banca Privada [Spanish Private Banking Association] (AEB) and recorded in a Certificate authorized by the Notary of Madrid, Mr. Vicente Moreno Torres Camy on February 5, 1997, under number 206 of his Log. The Asociación Española de Banca Privada authorizes its use under the express condition that only the total reproduction hereof can be accompanied by the mention “Master Agreement for Financial Transactions.”© 

	 	In Madrid, on December 21, 2006.

	THE PARTIES

ON THE ONE HAND: 

BANCO SANTANDER CENTRAL HISPANO, S.A. (hereinafter, “BBVA”), domiciled in Santander, Paseo Pereda, 9-12, with Tax Identification Number A-39000013, represented hereat by the undersigned agents, who have sufficient powers to formalize this agreement; and 

ON THE OTHER HAND: 

FINANZAS DOS, S.A., domiciled at Avenida de Europa, 18, Parque Empresarial La Moraleja, Alcobendas, Madrid 28108, represented hereat by the undersigned agents, who have sufficient powers to formalize this agreement.

The two Parties acknowledge each other’s sufficient capacity to execute this agreement and, therefore 

	THEY STATE

     I. - That it is the will of the Parties to maintain a business relationship that will be manifested in the execution of certain financial transactions, that they will to establish a single business relationship that contemplates as a whole the various financial transactions executed. 

     II.- That to such end they formalize this MASTER AGREEMENT FOR FINANCIAL TRANSACTIONS (hereinafter, called Master Agreement) in order to govern the terms under which the specific financial transactions will be executed under such single business relationship, setting forth to such end the following 

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	CLAUSES

          ONE.- NATURE, DEFINITIONS AND INTERPRETATION.

          1.1. - Nature. This document (which, together with its dispositions and Exhibits I and II forms a unit) is a Master Agreement (hereinafter, the Master Agreement). The financial transactions (hereinafter, the Transactions) agreed upon hereunder by means of the pertinent confirmation document (hereinafter, the Confirmation) shall be understood to be integrated into the subject of this Master Agreement, and the provisions hereof shall apply to them, without prejudice to the specific terms set forth in the Confirmations.

          This Master Agreement and the Transactions are part of a single business relationship between the Parties, governed by the Master Agreement, (all of them taken together, the Agreement). 

          1.2. - Definitions. The terms defined below shall have the meaning attributed to them in this Clause as follows: 

          “Calculation Agent” is the Party or Entity designated as such in Appendix I. 

          “Amount Payable” means the amount stated in the Settlement Currency and calculated pursuant to the provisions of Clause Fourteen, in the event of accelerated maturity of transactions based on any of the grounds set forth in Clauses Nine and/or Ten. 

          “Grounds for Accelerated Maturity” includes the Grounds for Accelerated Maturity due to Circumstances Imputable to the Parties and Grounds for Accelerated Maturity of Transactions due to Objective Circumstances that Have Arisen set forth in Clauses Nine and Ten, respectively. 

          “Certain Financial Agreements” means the transactions of the same or similar nature as those governed by this Master Agreement that are not expressly covered hereby and whether or not they were entered into prior to the Master Agreement. 

          “Business Day” means any day on which banks are open to execute financial transactions (a) in connection with any payment or delivery obligation deriving from the Transactions, in the place or places specified in the Confirmation for the payment and/or delivery in question; or if none, in the place that the Parties specify by any other means and, in the event that none is specified, in the financial center of the currency in which such payment is denominated; (b) with respect to the communications and/or notices contemplated

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in Clause Twenty, in the place of domicile indicated by the Parties in Appendix I for receipt thereof. For the purposes of the Master Agreement and the Confirmations, Saturday is considered a non-business day. Notwithstanding the provisions of Clause Twenty, in the event that the date(s) set pursuant to the provisions of the Agreement does (do) not fall on a Business Day, it shall be understood that the date(s) refer(s) to the next Business Day unless such next Business Day falls in the next calendar month, in which case it shall be understood to be the immediately preceding Business Day. 

          “Determined Debt,” notwithstanding the provisions of Exhibit I, means any economic obligation deriving from borrowing operations, such as loans or credits received and deposits accepted, be they present or future obligations, whether they are principal or accessory obligations, guarantees or any other type of obligation. 

          “Specified Entity” means the entity (entities) designated as such in Exhibit I; if in said Exhibit subsidiaries are indicated, these shall be understood to be the entities defined in Article 4 of Law 24/1988 of July 28 on the Securities Market and in Article 42 of the Commercial Code. 

          “Benchmark Institutions” means five financial institutions, designated by the Party who is to determine the Market Value, notable for their trading volume on the pertinent market. 

          “Accelerated Maturity Date” means the date fixed as such pursuant to the provisions of Clause Eleven. 

          “Guarantor” means the entity (entities) designated as such in Exhibit I. 

          “Guarantee” means the duly documented guarantee specified as such in Exhibit I. 

          “Outstanding Amounts,” with respect to the Transactions whose maturity has been accelerated, means the sum of: (a) the amounts whose payment was due on or before the Accelerated Maturity Date that have not been paid, plus, with respect to the obligations to be settled by delivery that had not been [so settled] on or before the Accelerated Maturity Date, the equivalent in cash of the value the item to be delivered would have on the market, on the date delivery was to have taken place (when this is the consideration due) and (b) the interest due as from the date on which the payment was due or would have been due, pursuant to item (a) above, up to (but not including) the Accelerated Maturity Date at the Applicable Interest Rate. The interest shall be calculated based on daily capitalization and for the days actually elapsed and in the same currency as the amounts due and outstanding. 

With respect to an obligation to deliver, the value it would have on the market shall be understood to mean the value prevailing on the date on which delivery would have taken place, obtained by the Party who is to determine it pursuant to the provisions of Clause Fourteen based on the quotes by entities notable for

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their trading volume on the pertinent market, whether they are credit institutions or intermediaries specializing in the mediation of such Transactions (brokers). In the event that both Parties are to determine it, the
value it would have on the market to restore or replace the transaction(s) that should have been settled by delivery shall be the arithmetical average of the values set by the Parties. 

 “Settlement Amount” means the equivalent in the Settlement Currency of the amount resulting from applying the criterion of Market
Value or, as appropriate, of Replacement Value, for Transaction(s) whose maturity has been accelerated. 

 The criterion of Replacement Value shall only be applicable to Transaction(s) for which no Market Value can be determined.

 “Maximum Amount,” for purposes of Cross Default, means the Maximum Amount specified as such in Exhibit I. 

 “Settlement Currency” means the peseta. 

 “Transactions'' are those that are governed by this Master Agreement and that are expressly covered hereby. 

 “Affected Transactions” are the Transactions that are affected by any of the Grounds for Accelerated Maturity of Transactions due to
Objective Circumstances that Have Arisen set forth in Clause Ten. 

 “Affected Parties” are the Parties that have triggered any of the Grounds for Accelerated Maturity of Transactions due to Objective
Circumstances that Have Arisen set forth in Clause Ten. 

 “Applicable Interest Rate” means (a) with respect to the payment obligations assumed under Clause 3.1 of the Master Agreement that
have not been honored by the Party in breach, the Late Interest Rate; (b) with respect to the payment obligation for the Amount Payable pursuant to Clause Fourteen and that, being due on the Payment Date determined pursuant to Clause 15.1, have not
been honored, the Late Interest Rate; (c) with respect to any other payment or delivery obligation that should have been honored, the Ordinary Interest Rate and (d) in any other case, the Termination Interest Rate. 

 “Late Interest Rate” means the interest rate stated as an annual percentage rate, which shall be the sum of the 1-day interbank rate
in the currency in which the payment should have been made which the Party owed such payment did not receive, plus the spread set forth in Exhibit I. Late interest shall be calculated by applying the Late Interest Rate to the amount that the Party
owed has not received, it being due, based on the year applicable (360 or 365 [days]) to the currency in question. Such interest shall be calculated based on daily capitalization and the number of days actually elapsed. In the  

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event that the currency in which the payment should have been made is the peseta, the 1-day interbank rate shall be obtained from the average rate for 1-day non-transferable interbank deposits published by ACF of Spain in the Bulletin of the Book Entry Office or in any publication or media replacing it in the future. 

     “Ordinary Interest Rate” means the interest rate stated as an annual percentage rate equivalent to the cost the Party not in breach (which shall be who shall calculate it) would incur if it had to refinance its position. 

     “Termination Interest Rate” means the interest rate stated as an annual percentage rate equivalent to the arithmetic average of the cost that each of the Parties would incur if they had to refinance their position. 

     “Market Value” means, with respect to one or more Transactions whose maturity has been accelerated, an amount (in the Settlement Currency) fixed by the Party that pursuant to this Master Agreement has standing to determine it based on the valuations provided by the Benchmark Institutions. Each valuation shall express the amount that that Party would receive (in which case such amount shall be stated with a negative sign) or pay (in which case such amount shall be stated with a positive sign) to enter into a Transaction with the Benchmark Institution which would have the effect of maintaining the economic value that for that Party any payment or delivery that should have been made as from the Accelerated Maturity Date would have, by virtue of the Transaction or group of Transactions whose maturity has been accelerated. 

     The Outstanding Amounts of the Transaction or group of Transactions whose maturity has been accelerated shall not be included, but the payments or deliveries due after the Accelerated Maturity Date that were not made because such Accelerated Maturity Date had been set shall be included. 

     The Party that determines the amount shall ask the Benchmark Institutions to provide their valuations, to the extent possible, on the same date and at the same time, on the Accelerated Maturity Date or, as appropriate, as soon as possible after that date. If more than three valuations are obtained, the arithmetic average of all of them shall be calculated, discarding the highest and lowest valuations. If only three valuations were provided, the Market Value shall be the mean value after having discarded the highest and lowest values. If only three valuations were provided and two of them were identical, the Market Value shall be the arithmetic average of the three valuations. If fewer than three valuations are obtained, it shall be deemed that the determination of the Market Value is not possible. 

     “Replacement Valuation” means the amount (in the Settlement Currency) that one Party calculates as its losses of any type (stated with a positive sign) or gains (stated with a negative sign) in connection with this Master Agreement or with a Transaction or group of Transactions whose maturity has been accelerated, as the case may be, including any loss of profits deriving from the Agreement, financing costs, or, at the option of such Party, but without any possibility of duplication, the losses and/or costs deriving from the accelerated maturity, settlement, obtaining or reestablishing any hedge or position related thereto (or any gain obtained in such cases). 

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The Replacement Valuation includes the losses, interest and costs (or gains) in connection with any payment or delivery that should have been made on or before the pertinent Accelerated Maturity Date but was not made. 

The Replacement Valuation does not include the expenses in connection with Clause Nineteen of this Master Agreement. 

The determination of the Replacement Valuation shall be made on the Accelerated Maturity Date or as soon as possible thereafter. The determination of the Replacement Valuation may be made by using as a benchmark quotes for market rates or prices from one or more Benchmark Institutions in the market in question. 

     1.3. - Interpretation. For purposes of the interpretation of the Master Agreement, in the event of any discrepancy between the provisions of the Master Agreement and Exhibit I thereto, the provisions of Exhibit I shall govern. In the event of any discrepancy between the Master Agreement and the provisions of any Confirmation, the provisions of the Confirmation shall govern. 

     TWO.- PURPOSE OF THE AGREEMENT. 

     The purpose of this Master Agreement is to govern the business relationship arising between the Parties as a result of executing the Transaction listed below by way of illustration rather than limitation: 

	2.1.      	- Swaps (SWAPS) of: 
		
	 	
	

	Interest rates (IRS); 
	 	
	

	Floating interest rates (BASIS SWAPS); 
	 	
	

	Currencies (CURRENCY SWAPS); 
	 	
	

	Mixed currencies and interest rates (CROSS-CURRENCY RATE SWAPS); 
	 	
	

	Commodities (COMMODITY SWAPS); 
	 	
	

	Shares or equity indexes (EQUITY SWAPS/EQUITY INDEX SWAPS); 
	 	
	

	Any type traded on the financial markets. 
	 
	2.2.      	- Forward rate transactions (FRA) 
	 
	2.3.      	- Futures and options transactions on over-the-counter markets on: 
	 
	 	
	

	Interest rates (CAPS, COLLARS and FLOORS); 
	 	
	

	Currencies; 
	 	
	

	Commodities; 
	 	
	

	Bonds; 
	 	
	

	Shares or equity indexes; 
	 	
	

	Any type traded on the financial markets. 
	 

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     2.4. - Foreign exchange trading (FX), spot (SPOT), and forward (FORWARD) transactions. 

     2.5. - Any combination of the foregoing, similar transaction or any analogous transaction specified in the pertinent Confirmation. 

     THIRD. – CARRYING OUT THE PURPOSE OF THE AGREEMENT. 

     3.1 . - Payment or Delivery Obligations. The Parties shall make such payments or deliveries as they are obligated to make for each Transaction as set forth in the pertinent Confirmation and in this Master Agreement. 

     3.2. - Term. The term shall be essential for all purposes of the Agreement. 

     3.3. - How the Payments are to Be Made. The payments shall be made on the date, at the place and in the currency set forth in the pertinent Confirmation for each Transaction. 

     3.4. - How the Deliveries are to Be Made. Any deliveries the Parties are obligated to make shall be made on the date in the form and/or through the Clearing House or System that the Parties agree upon and that is specified in the pertinent Confirmation. 

     3.5 . - Reciprocal Nature of the Obligations. Performance of the payment or delivery obligations of each of the Parties under each Transaction shall not be enforceable when any of the following circumstances apply:

     3.5.1. - The other Party has incurred, or with respect to such other Party there exist, Grounds for Accelerated Maturity, whether or not an Accelerated Maturity Date has been declared with respect to the other Party;

     3.5.2. - Any condition subsequent whatsoever exists that affects the performance of the obligation(s)

     FOUR. - CHANGE OF ACCOUNT. 

     Either of the Parties may change the account(s) designated for the receipt of payment(s) or delivery (deliveries), upon notice in writing to the other Party, giving notice of at least five (5) Business Days prior to the value date of the pertinent payment or delivery, such notice being binding, absent a reasonable objection by the other Party. 

     FIVE. -SETTLEMENT BY NETTING. 

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     The amounts payable on the same date and in the same currency pursuant to the same Transaction, shall be settled by netting, unless the Parties agree to a different system in Exhibit I or in the pertinent Confirmations, so that, if both Parties are to make payments to each other, the Party whose amount payable is greater shall be obligated to make a payment for the amount in excess. Likewise, the Parties, if they so set forth in Exhibit I and/or in the pertinent Confirmations, may settle by netting the amounts payable pursuant to two or more Transactions maturing on the same date and denominated in the same or different currencies. 

     SIX.- LATE INTEREST. OTHER AMOUNTS. 

     6.1. - Late Interest. Any delay in the payments with respect to the value date set forth in the Confirmation pertaining to the Transaction in question, or with respect to the value date that is a Payment Date for purposes of Clause Fifteen, shall accrue late interest at the Late Interest Rate on the amount due and payable and outstanding from the value date (inclusive) through the date on which the payment is actually made (exclusive). Late interest shall be paid in the same currency as the amount owed and shall accrue and be capitalized daily at the Late Interest Rate indicated for the purposes set forth in Article 317 of the Commercial Code. 

     6.2. - Other Amounts. Any delay in the obligation to deliver securities and/or commodities, shall give rise to compensation for damages in favor of the Party that is prejudiced, by calculation of the financial cost and/or the substitution cost for the securities and/or commodities not delivered, from the value date of the delivery through the date on which the delivery is actually made. 

     SEVEN.- CONFIRMATIONS. 

     7.1. - Obligation to Confirm. The Transactions that the Parties agree to shall be confirmed in writing, by mail, or by means of telex, fax, or other electronic messaging system at the addresses that are set forth to such end in Exhibit I. The Parties expressly represent that the Transactions shall be binding from the very moment at which the essential terms thereof have been agreed to either orally or otherwise. The Parties shall be responsible for sending and verifying the receipt and content of the Confirmations and, in the event that there are any discrepancies or errors, such discrepancies or errors shall be communicated immediately to the other Party and Confirmations shall be exchanged once corrected. 

     7.2. - Content of the Confirmations. The Confirmations shall include the essential elements for each type of Transaction, as well as a reference to the Master Agreement on which they are based. 

     7.3. - Confirmations by Electronic Systems. Confirmations issued by electronic systems shall adhere to the formats that such systems have established or, as appropriate, to the format that the Parties have agreed upon. Without prejudice to the provisions of Clause 7.2, for this type of Confirmation, and in the event that the electronic system does not permit making reference to the Master Agreement, it shall be understood that, for all intents and purposes, such Transactions shall be executed under such Master Agreement. 

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     EIGHT.- TRANSACTION CURRENCY.

     8.1. - Transaction Currency. Any payments to be made pursuant to a Transaction shall be made in the currency specified in each one of the Confirmations (hereinafter, “the Transaction Currency”). 

     8.2. - Change of Transaction Currency. On an exception basis, the Party that is the beneficiary of the payment may accept a currency other than the Transaction Currency under the terms agreed upon by the Parties. 

     NOVENA. - GROUNDS FOR ACCELERATED MATURITY DUE TO CIRCUMSTANCES IMPUTABLE TO THE PARTIES. 

     Either of the Parties can accelerate the maturity of all the Transactions and therefore the Agreement pursuant to the provisions of Clauses Eleven through Fourteen when the other Party, any of its Guarantors or any of its Specified Institutions incurs any of the following Grounds for Accelerated Maturity: 

     9.1. - Breach of Payment and/or Delivery Obligations. Breach of payment and/or delivery obligations pursuant to the provisions set forth in Clause Three, provided that such breach has not been cured within three (3) Business Days from the date on which notification of the default by the Party not in breach is effective, pursuant to the provisions set forth in Clause Twenty. 

     9.2. - Breach of the Agreement. The breach of any obligation deriving from the Agreement other than payment and/or delivery obligations, provided that such breach has not been cured within thirty (30) calendar days from the date of notification of the breach by the Party not in breach takes effect pursuant to the provisions set forth in Clause Twenty. 

          9.3. - Breach with Respect to the Guarantee. 

          9.3.1. - Breach by the Guarantor(s) of the payment and/or delivery obligation deriving from the Guarantee. 

          9.3.2. - Breach by the Guarantor(s) of any obligation other than the payment and/or delivery obligation deriving from the Guarantee, provided that such breach has not been cured by the deadline set forth in the pertinent Guarantee document, or, in the absence thereof, within fifteen (15) calendar days from the notification by the Party not in breach, pursuant to the provisions set forth in Clause Twenty. 

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          9.3.3. - The extinction or suspension of the Guarantee for any reason prior to the performance or extinction of the obligations secured by such Guarantee without the prior written consent of the other Party. 

          9.3.4. - The challenge of the enforceability or validity of the Guarantee by either of the Parties, by the Guarantor(s) itself (themselves) or by a third party. 

     9.4. - Falsity of the Representations. Falsity, misstatement or inaccuracy of the representations made by either of the Parties or any of their Guarantors with respect to the Agreement or to any Guarantee Document. 

     9.5. - Default on Certain Financial Agreements. Default by either of the Parties, by any of their Guarantors or by any of their Specified Institutions, on any of the Certain Financial Agreements when such default, once the pertinent notifications are given, gives rise to the termination or accelerated maturity of the obligations undertaken pursuant to the Certain Financial Agreement. 

     9.6. - Cross Default. Default by either of the Parties, by any of their Guarantors or by any of their Specified Institutions, on any of the agreements establishing the Certain Debt when: 

          9.6.1. - The Certain Debt that is or that could be declared a liquid, due and payable debt prior to the maturity originally set forth in such agreements as a result of the breach of the obligations assumed pursuant to said agreements that when taken either individually or together is equal to or greater than the Maximum Amount specified in Exhibit I. 

          9.6.2. - The payment obligations undertaken pursuant to such agreements are breached upon their maturity in amounts that when taken individually or together are equal to or greater than the Maximum Amount specified in Exhibit I. 

     9.7. - Situations of Insolvency. If either of the Parties, any of their Guarantors or any of their Specified Institutions:

          9.7.1. - Should request or a third party should request with respect to it, as the case may be, the declaration of suspension of payments or bankruptcy or a proceeding for reduction of amount or extension of time, or a meeting of creditors, or it appeals to its creditors to in some fashion restructure its debt. 

          9.7.2. - Should default on the payment of obligations or any in- or out-of-court proceedings that could trigger the seizure or auctioning of its assets for a sum exceeding that set forth in Exhibit I be filed against it. 

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          9.7.3. - Should default in general on its obligations or should admit in writing its inability to perform them when due. 

          9.7.4. - Should adopt any resolution or take any measure with the intention of triggering any of the foregoing situations. 

          9.7.5. - If a legal proceeding should be filed or any pleading or complaint should be filed before a Tribunal or Court or against either of the Parties whose final result: 

               a) should be intended to or could affect its assets for a sum exceeding that set forth in Exhibit I; and/or 

               b) should be intended to cause the appointment of one or more inspectors, depositories, auditors, administrators, receivers or the like for the assets of either of the Parties for a sum exceeding that set forth in Exhibit I. 

               9.7.6. - Should be the subject of intervention and or replacement measures by the competent authorities when the entity in question is subject to administrative supervision. 

          9.8. - Decrease in Economic Solvency. When the solvency of either of the Parties and/or of any of their Guarantors and/or any of their Specified Institutions is substantially diminished as a result of their participation in any fashion in a merger or spin-off transaction or sale of assets and/or liabilities. 

          9.9. - Extinction of the Legal Personality or Change in the Legally-Mandated Bylaws. The extinction of the legal personality, change of the legal nature or legally-mandated bylaws of either of the Parties, of any of their Guarantors, or of any of their Specified Institutions. 

          9.10. - Dissolution of Company. When a resolution for dissolution is requested or adopted with respect to either of the Parties and/or its Guarantors or of any of their Specified Institutions. 

          9.11. - Other Grounds for Accelerated Maturity due to Circumstances Imputable to the Parties.

The Parties may agree in Exhibit I upon other Grounds for Accelerated Maturity due to Circumstances Imputable to the Parties with the effects set forth in Clause 11.1. 

          TEN. - GROUNDS FOR ACCELERATED MATURITY OF TRANSACTIONS DUE TO THE OCCURRENCE OF OBJECTIVE CIRCUMSTANCES. 

          10.1. - Occurrence of Prohibition or Impossibility. When, after the date on which a Transaction was entered into, legal or regulatory provisions applicable thereto are modified or new legal or regulatory provisions applicable thereto are established or the legal or administrative interpretation

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of such provisions is modified such that it is prohibited or impossible for either of the Parties and/or for their Guarantors (hereinafter, the Affected Party), to make or receive the payments or deliveries due pursuant to such Transaction, perform other obligations deriving therefrom or perform the obligations deriving from the Guarantee. 

     The foregoing shall not apply when the prohibition or impossibility is triggered as a result of the breach by either of the Parties and/or by their Guarantors of the obligation to maintain in force all the authorizations necessary for the successful performance of this Agreement, in which case, the provisions set forth in Clause 9.2 shall apply. 

     10.2. - Change in Tax Law. When, after the date on which a Transaction was executed, legal or regulatory provisions with respect to taxes are modified or new legal or regulatory provisions with respect to taxes are established, and as a result thereof the Party and/or its Guarantor(s) (the Affected Party) that is to make the payments must apply carry-backs, deductions or withholdings for or as payment on account for a tax or that in any other way substantially affects the Transaction. 

     10.3. - Other Grounds for Accelerated Maturity due to the Occurrence of Objective Circumstances. The Parties may agree in Exhibit I upon other Grounds for Accelerated Maturity due to the Occurrence of Objective Circumstances with the effects set forth in Clause 11.2. 

     ELEVEN. -CONSEQUENCES OF THE GROUNDS FOR ACCELERATED MATURITY. 

     11.1. - With Respect to the Grounds for Accelerated Maturity due to Circumstances Imputable to the Parties. In the event that any of the Parties, Guarantors and/or Specified Institutions should incur one or more of the Grounds for Accelerated Maturity due to Circumstances Imputable to the Parties set forth in Clause Nine, the Party not in breach can notify the Party in breach of the accelerated maturity of all the Transactions that at that time are in force between the Parties pursuant to this Master Agreement, setting to such end an Accelerated Maturity Date. 

     11.2. - With Respect to the Grounds for Accelerated Maturity of Transactions due to Objective Circumstances that Have Arisen. 

     11.2.1. - In the event that one or more of the circumstances specified in Clause Ten should occur, the Parties shall seek in good faith to reach an agreement within thirty (30) calendar days from the date that the notification sent by the Unaffected Party to the Affected Party, or vice versa, takes effect, proposing the initiation of negotiations in order to avoid the accelerated maturity of the Affected Transactions. 

     11.2.2. - If within the period of thirty (30) calendar days set forth in Clause 11.2.1. the Parties should fail to reach an agreement, either of the Parties may notify the other Party of the accelerated maturity of all the Affected Transactions that at that time are in force between the Parties pursuant to this Master Agreement, setting to such end an Accelerated Maturity Date. 

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     11.3. - The Accelerated Maturity Date may not be earlier than the date that the notification sent for purposes of this Clause takes effect pursuant to the provisions set forth in Clause Twenty. 

     TWELVE. - EFFECTS OF THE SETTING OF AN ACCELERATED MATURITY DATE. 

     12.1. - With the effects set forth in this Clause and whether or not any of the Grounds for Accelerated Maturity persist, on the Accelerated Maturity Date set:

     a) the maturity of all the Transactions that at that time are in force between the Parties shall be accelerated because any of the Grounds for Accelerated Maturity due to Circumstances Imputable to the Parties set forth in Clause Nine has occurred, or

     b) the maturity of the Affected Transactions shall be accelerated because any of the Grounds for Accelerated Maturity of Transactions due to Objective Circumstances that Have Arisen has occurred. 

     12.2. Upon the setting of the Accelerated Maturity Date the payment and/or delivery obligations set forth in Clause 3.1 shall be suspended with respect to the Transactions whose maturity has been accelerated, without prejudice to the provisions of other Clauses of this Agreement. 

     12.3. Once the Accelerated Maturity Date takes effect, the Amount Payable deriving from the accelerated maturity of the Transactions shall be calculated pursuant to the provisions set forth in the following Clauses. 

     THIRTEEN. STATEMENT OF ACCOUNT. 

     Once the Accelerated Maturity Date takes effect, the pertinent Party (Parties) shall perform the calculations set forth in Clause Fourteen and shall provide to the other Party a statement of account including the following information: 

     a) a breakdown of the calculations performed, including those pertaining to valuations, specifying as appropriate the Amount Payable pursuant to Clause Fourteen. 

     b) data on the account(s) to which the payment of the Amount Payable are to be made. 

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FOURTEEN. CALCULATION OF THE AMOUNT PAYABLE. 

     14.1. Amount Payable due to the Accelerated Maturity of Transactions Triggered by Grounds for Accelerated Maturity due to Circumstances Imputable to the Parties. 

     14.1.1. Applying the Criterion of Market Value. The Amount Payable, shall be equal to:

     a) the sum of the Settlement Amount (calculated by the Party not in breach) for all the Transactions whose maturity has been accelerated (with a positive sign if the Settlement Amount is receivable by the Party not in breach and with a negative sign in the event that the Party not in breach should have to pay the Party in breach such Settlement Amount) and the equivalent in the Settlement Currency of the Outstanding Amounts due to the Party in breach, less

     b) the equivalent in the Settlement Currency of the Outstanding Amounts due to the Party in breach. 

     14.1.2. Applying the Criterion of Replacement Valuation. In the event that it is not possible to determine a Market Value, or even if it were possible, the result would not be commercially acceptable, the Amount Payable shall be an amount equivalent to the Replacement Valuation of the Transactions whose maturity has been accelerated and with respect to which it is not possible to determine a Market Value. 

     14.1.3. Common Standards. The outstanding amounts payable by the Party in breach shall be added, as applicable, to the Amount Payable resulting from applying the provisions set forth in paragraphs 14.1.1. and 14.1.2. above (including the interest accrued at the Applicable Interest Rate), and the outstanding amounts payable by the Party not in breach shall be subtracted from such amount (including interest accrued at the Applicable Interest Rate) for Transactions covered by the Master Agreement that, having matured for reasons other than grounds for Accelerated Maturity, are outstanding as of the Accelerated Maturity Date. 

     If the Amount Payable should be positive, the Party in breach shall pay the Party not in breach; on the other hand, if the Amount Payable should be negative, the Party in breach shall pay the absolute value of such amount to the Party in breach. 

     14.2. Amount Payable due to the Accelerated Maturity of Transactions Triggered by Grounds for Accelerated Maturity due to the Occurrence of Objective Circumstances. In the event that the maturities of Transactions are accelerated as a result of the Grounds for Accelerated Maturity set forth in Clause Ten and there is:

     14.2.1. One Affected Party: The Amount Payable shall be determined pursuant to the provisions of Clause 14.1. References to Party in breach and to Party not in breach shall be understood to be references to Affected Party and Unaffected Party. 

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          14.2.2. Two Affected Parties: 

     I. Applying the Criterion of Market Value. 

     a) Each of the Parties shall calculate the Settlement Amount resulting from the accelerated maturity of the Affected Transactions. 

     b) The lower of the Settlement Amounts, which we call X, obtained (with the pertinent sign) by the other Party (Party X) shall be subtracted from the higher of the Settlement Amounts, which we call Y, obtained by one Party (Party Y), with the pertinent sign, dividing the result by two. To the above result (X-Y)/2, the amount resulting from subtracting the Outstanding Amounts payable to Party X from the Outstanding Amounts payable to Party Y shall be added. 

     c) If the Amount Payable resulting from sub-paragraph b) above is a positive number, Party Y shall pay Party X, and if it is a negative number, Party X shall pay the absolute value of such amount to Party Y. 

     II. Applying the Criterion of Replacement Valuation. 

     Each of the Parties shall determine the Replacement Value of the Transaction(s) whose maturity has been accelerated. From the higher of the Replacement Values, which we call X, obtained by one Party (Party X), with the pertinent sign, the lower of the Replacement Values, which we call Y, obtained by the other Party (Party Y) (with the pertinent sign) shall be subtracted, dividing the result by two (X-Y)/2. 

     If the Amount Payable resulting from the foregoing sub-paragraph is a positive number, Party Y shall pay Party X, if it is a negative number, Party X shall pay the absolute value of such amount to Party Y. 

     14.3. Conversion of Currencies for the Calculation of the Amount Payable. 

     14.3.1. The calculation of the Amount Payable shall be performed in the Settlement Currency. 

     14.3.2. In the event that an amount that should be included in the Amount Payable is not denominated in the Settlement Currency, such amount shall be calculated by the Party with standing to do so, pursuant to the provisions set forth in this Clause, based on the exchange rate for that other currency against the Settlement Currency, on the Accelerated Maturity Date (or, as appropriate, on a subsequent date if the Market Value or the Replacement Value is determined on a subsequent date). The exchange rate for the Settlement Currency shall be the spot rate provided by a credit institution or an FX market broker notable for its trading volume on the market for the currency in question for the purchase of that other currency against the Settlement Currency

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     at approximately 11:00 a.m. in the city where the entity providing the quote is located and on the date on which the buy rate for that other currency is customarily determined, with value date on the Accelerated Maturity Date (or later). The entity providing the quote shall be selected in good faith by the Party that pursuant to the Agreement has standing to calculate the pertinent amount, and in the event that both Parties have standing, it shall be selected by agreement between them. 

     FIFTEEN.- PAYMENTS. 

     15.1. Payment Date. The Party (Parties) shall notify the other Party of the amount of the Amount Payable calculated as set forth in Clause Fourteen, as well as the Payment Date, which cannot be earlier than the effective date of the notification pursuant to the provisions set forth in Clause Twenty. The pertinent payment shall be made with value date on the Payment Date. The Amount Payable thus calculated shall accrue interest at the Ordinary Interest Rate from the Accelerated Maturity Date through the Payment Date. 

     15.2. Netting of the Amount Payable. The Party owed the amount of the Amount Payable may net such amount against any amount it owes to the other Party pursuant to any agreement other than the Agreement. 

     15.3. Application for payment of the Amount Payable. The Parties mutually and expressly authorize each other to apply for the payment of the Amount Payable owed by the other Party, as appropriate, before the netting referred to in the foregoing paragraph that has not been paid within five (5) Business Days following the Payment Date, any balances, deposits [or other] type of account in any currency that the debtor Party has on the books of the creditor Party, or on the books of any of their agencies, branches, representative offices or establishments, expressly and irrevocably empowering the creditor Party to, without prior notice, reduce or cancel the balances to pay the debt, paying and transferring the amount necessary to the creditor Party and liquidating securities or other types of securities or rights or deposits, including time deposits that the debtor Party has or may have with the creditor Party. The creditor Party shall inform the debtor Party of the breakdown of the netting performed. 

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     SIXTEEN.- GENERAL.

     16.1. Absence of Legal Proceedings or Arbitration. The Parties represent that neither they nor their Guarantors are party to any legal proceeding or arbitration whatsoever and they are not aware of the existence of any lawsuits or arbitration pending or expected against them that might affect their capacity to perform their respective obligations pursuant to the Agreement. 

     16.2. Waiver. The delay by the Parties in exercising the rights and actions deriving from the Agreement shall not in any way whatsoever imply a waiver of such rights and actions. The one-off or partial exercise of any right or power shall not prejudice the existence and subsequent exercise of such right or power, nor any other set forth in the Agreement. 

     The aforesaid rights or powers deriving from this Agreement do not exclude any rights or actions that prevailing law may recognize in favor of the Parties, which shall not be altered. 

     16.3. Void or Voidable Clauses. If a Clause of the Agreement becomes void or voidable pursuant to applicable law, such Clause shall be understood not to have been included or shall be modified, and the rest of the Agreement shall be valid and enforceable unless the nature or purpose of the Agreement is frustrated by such Clause. 

     16.4. Delivery of Documentation. The Parties undertake to provide any document set forth in Exhibit I and/or in the pertinent Confirmation on the date specified for such delivery. 

     16.5. Obligation to Obtain Authorizations. The Parties undertake to obtain and maintain in force such authorizations as may be necessary for the validity and full enforceability of the Agreement. 

     16.6. Awareness of the Risks Associated with the Transactions. The Parties state they are aware of and accept the risks inherent in or that may derive from the Transactions governed by this Master Agreement. Each of the Parties states that it has not been advised by the other Party regarding the benefits or advisability of executing any of the Transactions, and such Transactions are executed based on the estimates and calculations of risks performed by the Parties themselves. 

     SEVENTEEN. ASSIGNMENT.

     The Parties may not assign all or any portion of this Agreement without the written consent of the other Party. 

     Notwithstanding the foregoing, the rights to receive payments and/or deliveries that either of the Parties has pursuant to the Agreement may be assigned without requiring the consent of the other Party provided that this does not imply any prejudice for the other Party.

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     EIGHTEEN. RECORDINGS.

     The Parties authorize each other to record telephone conversations that they have with each other with respect to the Agreement or to the Transactions, and to use such recordings as means of proof for any incidence or arbitration and/or legal proceeding that may arise directly or indirectly between the Parties. 

     NINETEEN. EXPENSES.

     All expenses, including valuation and tax expenses, incurred by the other Party as a result of the defense and/or enforcement of its rights pursuant to the Agreement, of the Guarantee or of the accelerated maturity of any Transaction, expressly including the professional fees of attorneys, legal representatives, experts and, as appropriate, notaries, or any other expense that may be incurred, shall be for account of the Party that has breached its obligations deriving from the Agreement. 

     TWENTY. NOTIFICATIONS.

     For purposes of the notifications to be sent pursuant to the Agreement, the Parties agree that any means providing evidence of receipt may be used, with the notification obligation deemed to have been performed by sending a letter or telegram with acknowledgement of receipt, telex or fax sent to the respective domiciles or indications set forth in Exhibit I, with the acknowledgement of receipt of the letter or telegram or the original of the telex evidencing its receipt by means of the pertinent indications constituting reliable proof of the notification. 

     In any case, with respect to the effective date of the notifications, notifications made by fax shall be followed by the sending of the original text by telegram or letter with acknowledgement of receipt and shall be deemed effective as of the date shown on said acknowledgement of receipt pursuant to the foregoing paragraph. 

     For purposes of the Agreement, the Parties indicate as their domicile and telex and fax numbers valid for any notification those that they indicate in Exhibit I. 

     Any change or modification to the domiciles or indications set forth in Exhibit I shall be reported to the other Party by any of the means indicated above, and such change or modification shall not take effect until the acknowledgement of receipt of the change or modification has been received. 

     If the day the notification is received is not a business day, the notification shall be understood to take effect the next Business Day. 

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     TWENTY-ONE. VALIDITY.

     21.1. Entry into Force and Retroactive Effects. This Master Agreement shall enter into force and take effect as of the date set forth in the heading. Notwithstanding the foregoing, the effects of the Agreement may be applied retroactively if the Parties so expressly agree in Exhibit I as of the date indicated therein, and thus all the Transactions executed by the Parties between the date set forth in Exhibit I and that of the heading of this Master Agreement are covered by this Master Agreement, or those that the Parties expressly specify in Exhibit I are covered by this Master Agreement.

     21.2. Termination. This Master Agreement shall be in force and shall have full effect until such time as either of the Parties notifies the other Party of its desire to terminate it at least thirty (30) calendar days prior to the termination date indicated by the notifying Party. The termination of this Master Agreement shall not affect the Transactions executed hereunder, which shall continue to be governed by the Clauses of this Agreement and the specific terms hereof.

     TWENTY-TWO. APPLICABLE LAW.

     The Agreement shall be subject to and interpreted pursuant to Spanish law.

     TWENTY-THREE. JURISDICTION.

     23.1. Arbitration Agreement. The Parties, if they so set forth in Exhibit I, may submit any conflicts or disputes that may arise with respect to the Agreement, or the interpretation, performance or enforcement thereof, to Arbitration pursuant to the provisions set forth in said Arbitration Agreement.

     23.2. Jurisdiction. In the event that they do not stipulate an Arbitration Agreement, the Parties, waiving their own jurisdiction, submit to the jurisdiction and competence of the Courts and Tribunals set forth in Exhibit I.

     In witness whereof, the Parties execute this Master Agreement in two copies, in the place and on the date indicated in the heading.

	BANCO SANTANDER	 	FINANZAS DOS, S.A.:
	CENTRAL HISPANO, S.A.	 	 
	 
	/s/ Noemi Doce 	 	/s/ Juan Gallardo Cruces
	

		

	Ms. Noemi Doce	 	Mr. Juan Gallardo Cruces
			
	/s/ Miguel Angel Martinez Villegas	 	 /s/ Jose Angel Tejero
	

		

	Mr. Miguel Angel Martinez Villegas		Mr. Jose Angel Tejero

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EXHIBIT I

TO THE 

MASTER AGREEMENT FOR FINANCIAL TRANSACTIONS 

between 

BANCO SANTANDER CENTRAL HISPANO, S.A. (hereinafter, "THE BANK") 

and 

Finanzas Dos, S.A. (hereinafter, “THE CLIENT") 

December 21, 2006 

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1. Late Interest Rate. For purposes of the determination of the Late Interest Rate defined in Clause 1.2., the applicable spread shall be 2%. 

2. Settlement by Netting. For the purposes of Clause Five, the Parties set forth that settlement by netting shall not be applicable to two or more Transactions, except as expressly agreed upon by the Parties. 

3. Domicile for Confirmations and Notifications. 

The Bank sets forth as its domicile for Confirmations and notifications: 

	Name of the Institution 	  	Banco Santander Central Hispano, S.A. 
	To the attention of: 	  	Back-Office Department 
	Domicile: 	  	Ciudad Grupo Santander, Marisma Building 
	  	  	Ground Floor, 28660 Boadilla del Monte 
	Telephone: 	  	91 2893116 
	Fax: 	  	91 2571228 
			
			
	The Client sets forth as its domicile for Confirmations and notifications: 
	Name of the Institution 	  	Finanzas Dos, S.A. 
	To the attention of: 	  	Mr. José Ángel Tejero 
	Domicile: 	  	Avda. de Europa, 18, Parque Empresarial La 
	  	  	Moraleja, 28108 Alcobendas, Madrid 
	Telephone: 	  	91-663 23 55 
	Fax: 	  	91-663 29 29 

4. Guarantee. The Parties expressly acknowledge that the obligations that derive for the Client from this Agreement shall be guaranteed pursuant to the provisions set forth in the Coordination Agreement and Guarantees dated December 21, 2006 [the "Guarantees Agreement") entered into in connection with the Commercial Loan Agreement by and between the Client and the Lending Institutions on December 21, 2006 [the "Loan Agreement"), regardless of whether such guarantees were granted by the Client or by third parties. For greater clarity, the Guarantees Agreement is incorporated by reference into this agreement, and it shall be part of this Master Agreement with respect to the Guarantees granted by Finanzas Dos S.A. and by third parties in favor of Santander to secure the obligations deriving therefrom. 

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1. [redacted] ONE HUNDRED

2. ONE HUNDRED 

5. Guarantor. Those that pertain in each case pursuant to the provisions set forth in paragraph 4 above. 

6. Calculation Agent. The Calculation Agent shall be the Bank. 

7. Maximum Amount. For the purposes of Clause 9.6.1. and/or 9.6.2. , Maximum Amount is set forth as an amount equal to or greater than [redacted] MILLION (€ 15,000,000) euros or the equivalent thereof in any other currency for the Santander and TWO HUNDRED THOUSAND (€ 200,000) euros or the equivalent thereof in any other currency for the Client. 

[signatures]

8. Documents to be Delivered. For the purposes of Clause 16.4., the Parties undertake to deliver the following documentation: 

	y Copies of the instruments conferring powers 	  	Yes 
	     upon the signatories, duly recorded in the 	  	  
	     Commercial Registry. 	  	  
	  
	y Signature acknowledgement pages or cards or 	  	Yes 
	     photocopies of the identity documents of the 	  	  
	     signatories showing their signatures clearly. 	  	  

9. Situations of Insolvency. For purposes of the provisions set forth in Clauses 9.7.2. and 9.7.5., an amount equal to or greater than [redacted] MILLION (€ 15,000,000) euros or the equivalent thereof in any other currency for the Santander and TWO HUNDRED THOUSAND (€ 200,000) euros or the equivalent thereof in any other currency for the Client. 

[signatures]

10. Other Grounds for Accelerated Maturity due to Circumstances Imputable to the Parties.

Pursuant to the provisions set forth in Clause 9.11., the Parties set forth the following additional Grounds for Accelerated Maturity due to Circumstances Imputable to the Parties: Not Applicable. 

10.1 In the event that any of the Grounds for Accelerated Maturity set forth in Clause 27 of the Loan Agreement should occur and such grounds have not been cured by the deadline set forth therein. Thus, the Grounds for Accelerated Maturity described in Clause 27 of the Loan Agreement shall be deemed additional Grounds for Accelerated Maturity of the Master Agreement. The Client expressly acknowledges that consideration as grounds for accelerated maturity for purposes of this clause shall not be altered by the circumstance resulting in the grounds for accelerated maturity in question also occurring for any other third parties other than the Client, and, therefore, that all the circumstances and breaches described in the Loan Agreement as constituting Grounds for Accelerated Maturity shall imply the application of this agreement, regardless of whether or not these circumstances or breaches affect or are due to any other third parties other than the Client. For these purposes and for greater clarity, the references made in said Clause 27 of the Loan Agreement to the Borrower and to the Agent or to the Lending Institutions shall be understood to be made to the Master Agreement, to the Client and to Santander,

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respectively, when this is applicable. Specifically, the references made therein to the Agent or to the Majority of Lending Institutions shall be understood to be made to Santander for the purposes set forth herein. 

11. Other Grounds for Accelerated Maturity of Transactions due to Objective Circumstances that Have Arisen. Pursuant to the provisions set forth in Clause 10.3., the Parties set forth the following additional Grounds for Accelerated Maturity of Transactions due to Objective Circumstances that Have Arisen: Not Applicable. 

12. Specified Institutions. For all purposes set forth in the Agreement: 

	 	The Bank designates as Specified Institutions: None.

The Client designates as Specified Institutions: None

13. Certain Financial Agreements. For the purposes of Clause 9.5., “Certain Financial Agreements” shall be understood to be the Loan Agreement and the Coordination Agreement and Guarantees identified in paragraph 4 above and all such agreements as are directly related to the financing extended under such loan. 

14. Retroactive Effects. For purposes of the provisions set forth in Clause 21.1., the effects of this Master Agreement take effect as from the date set forth in the heading, and no prior Transaction entered into by and between Finanzas Dos, S.A. and Santander is covered hereunder. 

15. Jurisdiction. For any issues and disputes that may arise with respect to the validity, interpretation or performance of this agreement, or of the confirmations of the transactions that may be executed hereunder, the Parties, expressly waiving their own jurisdiction and any other jurisdiction to which they may be entitled, submit to the jurisdiction and competence of the Courts and Tribunals of Madrid. 

16. Additional Provisions. 

16.1 The Parties state that certain spelling errors have occurred in Exhibit II DEFINITIONS FOR THE INTERPRETATION OF THE CONFIRMATIONS DOCUMENTED PURSUANT TO THE MASTER AGREEMENT FOR FINANCIAL TRANSACTIONS and agree to the correction thereof as set forth below: 

(i) In the definition of “Floor Amount Payable,” the formula for the calculation thereof set forth in Exhibit II is deemed replaced by the following formula: 

CPF = IT x (TPF - TR) x PR 

                100 x N

(ii) The definition of “Floor Amount Payable” that is set forth in Exhibit II to this Agreement is modified by the Parties as follows: 

The last sentence of said definition shall read as follows: 

“The resulting amount shall only be enforced in the event that the Benchmark Rate is lower than the Floor Rate.” 

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(iii) The definition of “Settlement Currency” included in Clause One of the Agreement shall read as follows: “‘Settlement Currency’ means the euro. ” 

	16.2      	Negative Interest Rates. 
	 
	 	The Parties agree that, if in a given Calculation Period for a Transaction, either of the two Parties should be bound to pay a Floating Amount and such amount turns out to be a negative amount (the “Negative Rate Payer"), and that is because of any of the following circumstances: (i) due to a quoted negative Floating Rate or (ii) due to the application of a Spread to the Floating Rate, then the Floating Amount payable by the Negative Rate Payer for that Calculation Period shall be deemed to be zero. And, in turn, the Party that, in principle, will receive such negative Floating Amount (the "Receiver of Negative Rate") will have to pay the Negative Rate Payer the absolute value of the negative Floating Amount according to its calculation, in addition to any other amount owed for that Calculation Period with respect to that Transaction on the Settlement Date on which the Floating Amount would have been due if it had been a positive number. 
	 
	 	Any other amount payable by the Receiver of Negative Rate with respect to the absolute value of the negative Floating Amount shall be made in the currency in which the Floating Amount would have been paid if it had been an Amount with a positive sign, without taking into account the currency in which the Receiver of Negative Rate would have been bound to make its payments and into the amount designated by the institution receiving such payment. 
	 
	16.3      	Voluntary Accelerated Maturity of the Loan Agreement. 
	 
	 	(a)      	If, pursuant to the terms and conditions set forth in the Loan Agreement, the accelerated maturity of the entire loan should be triggered, the Client undertakes, if Santander should so request, to cancel the Transactions subject to this Master Agreement at the time or once such accelerated maturity is triggered. For such purposes, the Parties agree that the provisions set forth in Clause 14 of the Master Agreement shall apply, and Santander shall be deemed the Party not in breach. Any costs incurred as a result of the cancellation or accelerated maturity of all the open Transactions shall be for account of the Client.
	 	 
	 	(b)      	If, pursuant to the terms and conditions set forth in the Loan Agreement, any partial accelerated maturity thereof should be triggered, the Client undertakes, if Santander should so request, to modify the terms of the Transactions executed pursuant to this Master Agreement to whatever extent should be necessary, and in particular reducing the notional amount thereof proportionally to the repayment made, such that the financial equivalence for the two Parties is maintained at all times. Any costs incurred as a result of the partial cancellation or accelerated maturity of such Transactions shall be for account of the Client. 
	 
	16.4      	Incorporation by Reference. 
		

		The provisions set forth in the Payments Clause, in the Representations and Warranties Clause, in the Obligations Clause, in the Change of Circumstances Clause and in the Taxes Clause of the Loan Agreement shall apply to this Master Agreement mutatis mutandis and are incorporated by reference. Nonetheless, in these cases as well as in any other incorporations by reference to the Clauses
	 

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of the Loan Agreement mentioned in this Master Agreement, the references made in such Clauses to the Agreement to the Borrower and to the Agent or to the Lending Institutions shall be understood to be made to the Master Agreement, to the Client and to Santander, respectively, when this is applicable. The guarantees and promises of guarantees executed pursuant to the Guarantees’ Agreement on this same date before the Notary of Madrid Mr. José Miguel García Lombardía (“Guarantees”) secure or shall secure, as appropriate, the performance of the obligations that for the Client and in favor of Santander derive from this Master Agreement and from the Transactions formalized hereunder, pursuant to the terms agreed upon by the Parties. 

16.5 Additional Obligations of the Parties. 

(a) Maintain this Master Agreement and the rights deriving therefrom for Santander with at least the same preferences, privileges and seniority as those deriving or that could derive for the Lending Institutions pursuant to the Loan Agreement. 

(b) Extend to Santander, in its capacity as counterparty under this Master Agreement, any Guarantee that the Client may grant in connection with the Loan Agreement. 

(c) The Parties undertake not to disclose to third parties any information whatsoever with respect to this Agreement, except in response to a court or administrative order or to comply with applicable law. Such prohibition shall not apply to third parties interested in acquiring a participation in this Agreement who are eligible to do so pursuant to the provision set forth herein, provided that such third parties have executed the pertinent confidentiality agreement. 

17. Awareness of the Risks Associated with the Transactions. The Parties agree to replace paragraph 16.6 of Clause Sixteen of the Master Agreement with the following: 

"The Parties state they are fully aware of the risk of volatility inherent in the execution of Transactions whose market value may fluctuate rapidly as a result of fluctuations in interest rates, exchange rates or other parameters relevant to the financial markets. They further state that they are aware that the obligations deriving from the Transactions require appropriate actions and constant monitoring of the trend of the financial markets and of the positions that the Parties take thereon, for which sufficient means and knowledge regarding the operation of such markets are necessary. 

Each of the Parties represents that it is acting on its own behalf, and that in order to enter into the Transactions it has made its own decisions and performed its own estimates and calculations of risks, as well as the pertinent analysis to determine if the Transaction is appropriate for it according to its own judgment and that of its advisors, when it has deemed appropriate the intervention of such advisors. Each of the Parties represents that it is not based on any communication whatsoever (either verbal or written) from the other party in the form of financial advice nor has it been advised by the other Party regarding the benefits or advisability of executing any of the Transactions. In this regard, the information about and explanation of the terms and conditions of a Transaction shall not be deemed financial advice or a recommendation to execute the Transaction. No communication (either verbal or written) received from the other Party shall be deemed a guarantee or commitment regarding the expected results of the Transaction. 

The Parties represent that they are capable of assessing the risks of each Transaction (either on their own or with the help of financial advisors) and they represent that they are aware of and accept the risks that

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they assume and that they have the capacity to assume such risks.

Finally, the Parties represent that they are familiar with the recommendation of the Basel Committee of the Bank for International Settlements with respect to the advisability of entering into the financial Transactions that are the purpose of this Agreement under master agreements that set forth the existence of a single business relationship for purposes of termination and settlement, as appropriate, of the contractual positions of the Parties, notwithstanding the coexistence within such single business relationship of several financial transactions."

	18. Enforcement procedures.

	(a)     	Loan account and evidentiary value of the balance due and payable.
	 
	 	For purposes of this Master Agreement, Santander will open a special account to record accruals and payments pursuant to this Master Agreement and monitor the balance thereof at all times.
	 
	 	Notations pertaining to amounts accrued but not yet due may be posted each day or all at once for any period of time.
	 
	 	The Client acknowledges and expressly accepts that the balances resulting from the aforementioned credit account, duly certified by Santander shall be valid as evidence in court, barring any error, pursuant to the express agreement set forth in the following paragraph.
	 
	(b)     	Calculation of the balance due and payable and court enforcement.
	 
	 	The Parties expressly agree that the calculation to determine the liquid, due and payable amount owed by the Client to Santander pursuant to this Master Agreement (pursuant to articles 571 and 572 of Law 1/2000, of January 7, on Civil Procedure), for purposes of the payment and of the enforcement action or for purposes of in- or out-of-court claims, shall be performed by Santander. To such end, Santander shall issue the pertinent certification, including the balance owed by the Client to Santander, pursuant to a calculation of the loan account referred to in the foregoing paragraph. The amount due and payable resulting from such calculation shall be notified to the Client pursuant to the provisions set forth in Article 572.2, end, of said law.
	 
	 
	 
	 	The certificate or first copy of the instrument including the confirmation or, as appropriate, this Master Agreement, issued including the formalities set forth in Law 1/2000, of January 7, on Civil Procedure shall be an enforceable instrument, and it shall be accompanied by the following documents:
	 
	 	a. Certification issued by the Notary that has issued the certificate or notarized the instrument evidencing that such certificate or instrument agrees with the entries in his/her Log Book and the date of such entries.
	 
	 	b. The certification referred to in the first paragraph of this section stating the balance of the account resulting from the calculation made by Santander. The Notary acting at the request of Santander shall evidence in said certification that the calculation of the Client’s debt was performed in the fashion agreed upon by the Parties set forth in this Master Agreement.
	 

	99

PD1450365

	- 27 -

          c. The statement of the debit and credit entries and those pertaining to the application of interest that determine the specific balance for which enforcement is sought.

          d. The document evidencing having notified Finanzas Dos, S.A. the amount due and payable pursuant to the provisions set forth in the first paragraph of this section.

          All taxes, expenses and customs duties that may accrue or may be incurred in connection with the notarial instruments referred to in the foregoing paragraph shall be for account of Finanzas Dos, S.A..

In witness whereof, the Parties execute this Exhibit, which, for all pertinent intents and purposes, shall be deemed an integral part of the Master Agreement, in two copies, in the place and on the date indicated at the beginning.

	FINANZAS DOS, S.A.	 	BANCO SANTANDER CENTRAL HISPANO, S.A.
	 
	/s/ Juan Gallardo Cruces  	 	/s/ Noemí Doce Deibe
	

 		

	Mr. Juan Gallardo Cruces	 	Ms. Noemí Doce Deibe
	 
	/s/ Valentín Montoya	 	/s/ Miguel Angel Martínez Villegas
	

		

	Name: Valentín Montoya	 	Mr. Miguel Angel Martínez Villegas

	100

	[seal:] 

NIHIL PRIUS FIDE 

COLLEGES OF NOTARIES OF SPAIN

[seal:] NOTARIAL OFFICE OF JOSE MIGUEL GARCIA LOMBARDÍA MADRID NIHIL PRIUS FIDE 

	THIS IS A SIMPLE COPY

[seal:] NOTARIAL OFFICE OF JOSE MIGUEL GARCIA LOMBARDIA MADRID

NIHIL PRIUS FIDE 

PD1450364Securities Purchase Agreement

    Exhibit
      10.1

     

    

     

    EXECUTION
      COPY

     

    

     

    

     

     

     

    

     

    SECURITIES
      PURCHASE AGREEMENT

     

    BY
      AND AMONG

     

    TONTINE
      CAPITAL PARTNERS, L.P.,

     

    TONTINE
      CAPITAL OVERSEAS MASTER FUND, L.P.

     

    AND

     

    MISCOR
      GROUP, LTD.

     

    

     

    

     

    

     

    JANUARY
      18, 2007

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    TABLE
      OF CONTENTS

     

    
      	 	 	
              Page

            
	 	 	 
	
              ARTICLE
                1

            	
              Definitions

            	
              1

            
	 	 	 
	
              ARTICLE
                2

            	
              Purchase
                and Sale of Shares

            	
              3

            
	 	
              2.1

            	
              Purchase
                of Shares

            	
              3

            
	 	
              2.2

            	
              Purchase
                Price and Form of Payment; Delivery

            	
              3

            
	 	
              2.3

            	
              Closing
                Date

            	
              3

            
	 	 	 
	
              ARTICLE
                3

            	
              Buyers’
                Representations and Warranties

            	
              3

            
	 	
              3.1

            	
              Organization
                and Qualification

            	
              3

            
	 	
              3.2

            	
              Authorization;
                Enforcement

            	
              3

            
	 	
              3.3

            	
              Securities
                Matters

            	
              4

            
	 	
              3.4

            	
              Information

            	
              4

            
	 	
              3.5

            	
              Restrictions
                on Transfer

            	
              5

            
	 	 	 
	
              ARTICLE
                4

            	
              Representations
                and Warranties of the Company

            	
              5

            
	 	
              4.1

            	
              Organization
                and Qualification

            	
              5

            
	 	
              4.2

            	
              Authorization;
                Enforcement

            	
              5

            
	 	
              4.3

            	
              Capitalization;
                Valid Issuance of Shares

            	
              6

            
	 	
              4.4

            	
              No
                Conflicts

            	
              6

            
	 	
              4.5

            	
              SEC
                Documents; Financial Statements.

            	
              7

            
	 	
              4.6

            	
              Absence
                of Certain Changes

            	
              8

            
	 	
              4.7

            	
              Absence
                of Litigation

            	
              8

            
	 	
              4.8

            	
              Patents,
                Copyrights

            	
              8

            
	 	
              4.9

            	
              Tax
                Status

            	
              8

            
	 	
              4.10

            	
              Permits;
                Compliance.

            	
              9

            
	 	
              4.11

            	
              Environmental
                Matters

            	
              9

            
	 	
              4.12

            	
              Title
                to Property

            	
              10

            
	 	
              4.13

            	
              No
                Investment Company or Real Property Holding Company

            	
              10

            
	 	
              4.14

            	
              No
                Brokers

            	
              10

            
	 	
              4.15

            	
              Registration
                Rights

            	
              10

            
	 	
              4.16

            	
              Exchange
                Act Registration

            	
              11

            
	 	
              4.17

            	
              Labor
                Relations

            	
              11

            
	 	
              4.18

            	
              Transactions
                with Affiliates and Employees

            	
              11

            
	 	
              4.19

            	
              Insurance

            	
              11

            
	 	
              4.20

            	
              Approved
                Acquisitions of Shares; No Anti-Takeover Provisions

            	
              11

            
	 	
              4.21

            	
              ERISA

            	
              11

            
	 	
              4.22

            	
              Company
                Shareholders of Record

            	
              12

            
	 	
              4.23

            	
              Disclosure

            	
              12

            
	 	 	 
	
              ARTICLE
                5

            	
              Covenants

            	
              12

            
	 	
              5.1

            	
              Form
                D; Blue Sky Laws

            	
              12

            
	 	
              5.2

            	
              Use
                of Proceeds

            	
              12

            
	 	
              5.3

            	
              Expenses

            	
              12

            
	 	
              5.4

            	
              Intentionally
                Omitted.

            	
              12

            
	 	
              5.5

            	
              No
                Integration

            	
              13

            

    

    

     

    
      
        
        

      

      
        i

        
          

        

      

      
        
        

      

    

    

     

    
      	 	
              5.6

            	
              Board
                Designee(s)

            	
              13

            
	 	
              5.7

            	
              Observation
                Rights

            	
              13

            
	 	
              5.8

            	
              Participation
                in Future Issuances

            	
              13

            
	 	
              5.9

            	
              Future
                Acquisitions

            	
              14

            
	 	 	 
	
              ARTICLE
                6

            	
              Conditions
                To The Company’s Obligation

            	
              14

            
	 	
              6.1

            	
              Delivery
                of Transaction Documents

            	
              14

            
	 	
              6.2

            	
              Payment
                of Purchase Price

            	
              14

            
	 	
              6.3

            	
              Representations
                and Warranties

            	
              14

            
	 	
              6.4

            	
              Litigation

            	
              15

            
	 	 	 
	
              ARTICLE
                7

            	
              Conditions
                to The Buyers’ Obligation

            	
              15

            
	 	
              7.1

            	
              Delivery
                of Transaction Documents; Issuance of Shares

            	
              15

            
	 	
              7.2

            	
              Representations
                and Warranties

            	
              15

            
	 	
              7.3

            	
              Consents

            	
              15

            
	 	
              7.4

            	
              Litigation

            	
              15

            
	 	
              7.5

            	
              Opinion

            	
              15

            
	 	
              7.6

            	
              No
                Material Adverse Change

            	
              15

            
	 	
              7.7

            	
              Board
                Approval

            	
              16

            
	 	
              7.8

            	
              Irrevocable
                Proxy

            	
              16

            
	 	 	 
	
              ARTICLE
                8

            	
              Indemnification

            	
              16

            
	 	
              8.1

            	
              Indemnification
                by the Company

            	
              16

            
	 	
              8.2

            	
              Notification

            	
              16

            
	 	 	 
	
              ARTICLE
                9

            	
              Governing
                Law; Miscellaneous

            	
              17

            
	 	
              9.1

            	
              Governing
                Law

            	
              17

            
	 	
              9.2

            	
              Counterparts;
                Electronic Signatures

            	
              17

            
	 	
              9.3

            	
              Headings

            	
              17

            
	 	
              9.4

            	
              Severability

            	
              17

            
	 	
              9.5

            	
              Entire
                Agreement; Amendments

            	
              17

            
	 	
              9.6

            	
              Notices

            	
              17

            
	 	
              9.7

            	
              Successors
                and Assigns

            	
              18

            
	 	
              9.8

            	
              Third
                Party Beneficiaries

            	
              19

            
	 	
              9.9

            	
              Publicity

            	
              19

            
	 	
              9.10

            	
              Further
                Assurances

            	
              19

            
	 	
              9.11

            	
              No
                Strict Construction

            	
              19

            
	 	
              9.12

            	
              Rights
                Cumulative

            	
              19

            
	 	
              9.13

            	
              Survival

            	
              19

            
	 	
              9.14

            	
              Knowledge

            	
              20

            

    

    

     

    

     

    
      
        
        

      

      
        ii

        
          

        

      

      
        
        

      

    

    Securities
      Purchase Agreement

     

    This
      SECURITIES PURCHASE AGREEMENT, dated as of January 18, 2007, is entered into
      by
      and among MISCOR
      GROUP, LTD.,
      an
      Indiana corporation (the “Company”),
      and
      the investors identified on the signature page hereto (each a “Buyer”
and
      collectively, the “Buyers”).
      

     

    RECITALS:

     

    A. The
      Company and the Buyers are executing and delivering this Agreement in reliance
      upon the exemptions from securities registration afforded by Section 4(2) of
      the
      1933 Act and Rule 506; 

     

    B. The
      Buyers desire to purchase and the Company desires to issue and sell, upon the
      terms and conditions set forth in this Agreement, 62,500,000 shares of common
      stock, no par value per share of the Company; and

     

    C. Contemporaneous
      with the execution and delivery of this Agreement, the parties hereto are
      executing and delivering a Registration Rights Agreement, in the form attached
      hereto as Exhibit
      A,
      pursuant to which the Company has agreed under certain circumstances to register
      the resale of the Shares under the 1933 Act and the rules and regulations
      promulgated thereunder, and applicable state securities laws.

     

    AGREEMENT

     

    NOW
      THEREFORE, the Company and the Buyers hereby agree as follows:

     

     

    ARTICLE
      1

    DEFINITIONS

     

    “1933
      Act” means
      the
      Securities Act of 1933, as amended.

     

    “1934
      Act” means
      the
      Securities Exchange Act of 1934, as amended.

     

    “2006
      SEC Documents”
has
      the
      meaning set forth in Section
      3.4.

     

    “Action” means
      any
      action, suit claim, inquiry, notice of violation, proceeding (including any
      partial proceeding such as a deposition) or investigation against or affecting
      the Company, any of its Subsidiaries or any of their respective properties
      before or by any court, arbitrator, governmental or administrative agency,
      regulatory authority (federal, state, county, local or foreign), public board,
      stock market, stock exchange or trading facility.

     

    “Agreement” means
      this Securities Purchase Agreement.

     

    “Buyer”
and
      “Buyers”
have
      the meaning set forth in the preamble.

     

    “Closing”
has
      the
      meaning set forth in Section
      2.3.

     

    “Closing
      Date”
has
      the
      meaning set forth in Section
      2.3.

     

    “Common
      Stock” means
      the
      Company’s common stock, no par value per share.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    “Company”
has
      the
      meaning set forth in the preamble.

     

    “Environmental
      Laws”
has
      the
      meaning set forth in Section
      4.11.

     

    “ERISA”
has
      the
      meaning set forth in Section
      4.21.

     

    “Future
      Offering”
has
      the
      meaning set forth in Section
      5.8.

     

    “Hazardous
      Materials”
has
      the
      meaning set forth in Section
      4.11.

     

    “Intellectual
      Property” has
      the
      meaning set forth in Section
      4.8.

     

    “Investment
      Company” has
      the
      meaning set forth in Section
      4.13.

     

    “Laurus”
means
      Laurus Master Fund, Ltd.

     

    “Laurus
      Obligations”
has
      the
      meaning set forth in Section
      5.2.

     

    “Legal
      Requirement”
means
      any federal, state, local, municipal, foreign, international, multinational
      or
      other law, rule, regulation, order, judgment, decree, ordinance, policy or
      directive, including those entered, issued, made, rendered or required by any
      court, administrative or other governmental body, agency or authority, or any
      arbitrator.

     

    “Material
      Adverse Effect”
means
      any material adverse effect on the business, operations, assets, financial
      condition or prospects of the Company. 

     

    “Observation
      Rights”
has
      the
      meaning set forth in Section 5.7.
      

     

    “Observer”
has
      the
      meaning set forth in Section 5.7.
      

     

    “Offering
      Notice”
has
      the
      meaning set forth in Section
      5.8.

     

    “Permits”
has
      the
      meaning set forth in Section 4.10.

     

    “Purchase
      Price” means
      a
      price of $0.20 per share for the Shares to be issued and sold to the Buyers
      at
      the Closing.

     

    “Registration
      Rights Agreement” means
      the
      Registration Rights Agreement executed
      and delivered contemporaneously with this Agreement pursuant
      to which the Company has agreed under certain circumstances to register the
      resale of the Shares under the 1933 Act and the rules and regulations
      promulgated thereunder, and applicable state securities laws.

     

    “Rule
      506”
means
      Rule 506 of Regulation D promulgated under the 1933 Act.

     

    “SEC”
means
      the United States Securities and Exchange Commission.

     

    “SEC
      Documents” has
      the
      meaning set forth in Section
      4.5.

     

    “Shares”
means
      the 62,500,000 shares of Common Stock being issued and sold under this
      Agreement.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    “Subsidiaries”
means
      with respect to the Company, Magnetech
      Industrial Services, Inc., an Indiana corporation, Martell Electric, LLC, an
      Indiana limited liability company, HK Engine Components, LLC, an Indiana limited
      liability company, Magnetech Industrial Services of Alabama, LLC, an Indiana
      limited liability company, and Magnetech Power Services, LLC, an Indiana limited
      liability company.

     

    “Transaction
      Documents”
means
      this Agreement, the Registration Rights Agreement, and any other documents
      contemplated by this Agreement.

     

    “Transfer
      Instructions”
has
      the
      meaning set forth in Section
      2.2.

     

     

    ARTICLE
      2

    PURCHASE
      AND SALE OF SHARES

     

    2.1 Purchase
      of Shares.
      Subject
      to the terms and conditions of this Agreement, on the Closing Date, the Company
      shall issue and sell the Shares and each Buyer shall purchase from the Company
      the number of Shares as is set forth below such Buyer’s name on the signature
      page hereto.

     

    2.2 Purchase
      Price and Form of Payment; Delivery.
      On the
      Closing Date each Buyer shall pay $0.20 per share for the Shares to be issued
      and sold to it at the Closing, for a total price of $12,500,000. The Purchase
      Price shall be paid by wire transfer of immediately available funds in
      accordance with the Company’s written instructions. At the Closing, upon payment
      of the Purchase Price therefore by the Buyers, the Company will deliver
      irrevocable written instructions (“Transfer
      Instructions”)
      to the
      transfer agent for the Company’s Common Stock to issue certificates representing
      the Shares registered in the name of each Buyer and to deliver such certificates
      to or at the direction of each Buyer. The Company shall not have the power
      to
      revoke or amend the Transfer Instructions without the written consent of the
      Buyers.

     

    2.3 Closing
      Date.
      Subject
      to the satisfaction (or written waiver) of the conditions set forth in
Article 6
      and
Article 7
      below,
      the closing of the transactions contemplated by this Agreement shall be held
      on
      January 18, 2007, or such other time as may be mutually agreed upon by the
      parties to this Agreement (the “Closing
      Date”),
      at
      the offices of Barack Ferrazzano Kirschbaum Perlman & Nagelberg LLP, 333
      West Wacker Drive, Suite 2700, Chicago, Illinois 60606 or
      at
      such other location or by such other method (including exchange of signed
      documents) as may be mutually agreed upon by the parties to this Agreement
      (“Closing”).

     

     

    ARTICLE
      3

    BUYERS’
      REPRESENTATIONS AND WARRANTIES

     

    Each
      Buyer represents and warrants to the Company that:

     

    3.1 Organization
      and Qualification.
      Each of
      the Buyers is an entity of the type identified on the signature page hereto,
      duly organized, validly existing and in good standing under the laws of the
      jurisdiction of its organization, with full power and authority to purchase
      the
      Shares and otherwise perform its obligations under this Agreement and the other
      Transaction Documents.

     

    3.2 Authorization;
      Enforcement.
      This
      Agreement and each of the other Transaction Documents and the consummation
      of
      the transactions contemplated hereby and thereby have been duly and validly
      authorized by, and duly executed and delivered on behalf of, such Buyer. This
      Agreement and each of the other Transaction Documents constitutes the valid
      and
      binding agreement of such Buyer enforceable in accordance with its terms, except
      as such enforceability may be limited by: (i) applicable

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    bankruptcy,
      insolvency, reorganization, moratorium or other similar laws in effect that
      limit creditors’ rights generally; (ii) equitable limitations on the
      availability of specific remedies; and (iii) principles of equity.

     

    3.3 Securities
      Matters.
      In
      connection with the Company’s compliance with applicable securities
      laws:

     

    a. Such
      Buyer understands that the Shares are being offered and sold to it in reliance
      upon specific exemptions from the registration requirements of United States
      and
      state securities laws and that the Company is relying upon the truth and
      accuracy of, and such Buyer’s compliance with, the representations, warranties,
      agreements, acknowledgments and understandings of such Buyer set forth herein
      in
      order to determine the availability of such exemption and the eligibility of
      such Buyer to acquire the Shares.

     

    b. Such
      Buyer is purchasing the Shares for its own account, not as a nominee or agent,
      for investment purposes and not with a present view towards resale, except
      pursuant to sales exempted from registration under the 1933 Act, or registered
      under the 1933 Act as contemplated by the Registration Rights
      Agreement.

     

    c. Such
      Buyer is an “accredited investor” as that term is defined in Rule 501(a) of
      Regulation D under the 1933 Act, and has such knowledge and experience in
      financial and business matters as to be capable of evaluating the merits and
      risks of an investment in the Shares. Such Buyer understands that its investment
      in the Shares involves a significant degree of risk. Such Buyer understands
      that
      no United States federal or state agency or any other government or governmental
      agency has passed upon or made any recommendation or endorsement of the
      Shares.

     

    d. Such
      Buyer
      is not acting as an underwriter for the sale of the Shares to the public or
      to
      others. Such Buyer is not a member of the National Association of Securities
      Dealers, Inc. (“NASD”) and for a period of 12 months prior to the date of this
      Agreement, has not been affiliated or associated with any company, firm, or
      other entity that is a member of the NASD.

     

    e. Such
      Buyer is not executing this Agreement and purchasing the Shares as a result
      of
      (i) any advertisement, article, notice or other communication published in
      any
      newspaper, magazine or similar media or broadcast over television or radio,
      or
      (ii) any seminar or meeting whose attendees have been invited by any general
      solicitation or general advertising.

     

    3.4 Information.
      Such
      Buyer has conducted its own due diligence examination of the Company’s business,
      financial condition, results of operations, and prospects. In connection with
      such investigation, such Buyer and its representatives (i) have reviewed the
      Company’s quarterly reports on Form 10-Q for the three most recently concluded
      interim periods, the Company’s Registration Statements on Form S-1 and Form
      S-1/A filed on November 1, 2005, May 4, 2006, October 11, 2006 and November
      2,
      2006 and the Company’s Current Reports on Form 8-K or Form 8-K/A filed in 2006
      (and all exhibits included therein and financial statements and schedules
      thereto and documents (other than exhibits to such documents) incorporated
      by
      reference therein, being hereinafter referred to herein as the the “2006
      SEC Documents”),
      and
      (ii) have been given an opportunity to ask questions, to the extent such Buyer
      considered necessary, and have received answers from, officers of the Company
      concerning the business, finances and operations of the Company and information
      relating to the offer and sale of the Shares, and (iii) have received or had
      an
      opportunity to obtain such additional information as they deem necessary to
      make
      an informed investment decision with respect to the purchase of the
      Shares.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    3.5 Restrictions
      on Transfer.
      Such
      Buyer understands that except as provided in the Registration Rights
      Agreement, the issuance of the Shares has not been and is not being registered
      under the 1933 Act or any applicable state securities laws. Such Buyer may
      be
      required to hold the Shares indefinitely and the Shares may not be transferred
      unless (i) the Shares are sold pursuant to an effective registration statement
      under the 1933 Act, or (ii) such Buyer shall have delivered to the Company
      an
      opinion of counsel to the effect that the Shares to be sold or transferred
      may
      be sold or transferred pursuant to an exemption from such registration, which
      opinion shall be reasonably acceptable to the Company. Such Buyer understands
      that until such time as the resale of the Shares has been registered under
      the
      1933 Act as contemplated by the Registration Rights Agreement or otherwise
      may
      be sold pursuant to an exemption from registration, certificates evidencing
      the
      Shares may bear a restrictive legend in substantially the following form (and
      a
      stop-transfer order may be placed against transfer of the certificates
      evidencing such Shares): 

     

    “THE
      SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      FEDERAL SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAW OF ANY STATE.
      THE SHARES MAY NOT BE SOLD OR OFFERED FOR SALE UNLESS THEY HAVE FIRST BEEN
      SO
      REGISTERED OR UNLESS THE COMPANY RECEIVES A WRITTEN OPINION FROM LEGAL COUNSEL
      ACCEPTABLE TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.”

     

     

    ARTICLE
      4

    REPRESENTATIONS
      AND WARRANTIES OF THE COMPANY

     

    Except
      as
      set forth in the Company’s Disclosure Schedule attached hereto, and subject to
      any information contained in the 2006 SEC Documents, the Company represents
      and
      warrants to the Buyers that:

     

    4.1 Organization
      and Qualification.
      The
      Company has no subsidiaries other than the Subsidiaries. The Company and each
      of
      its Subsidiaries is a corporation or limited liability company, as applicable,
      duly organized, validly existing and in good standing under the laws of the
      jurisdiction in which it is incorporated or organized, with corporate or limited
      liability company power and authority to own, lease, use and operate its
      properties and to carry on its business as now operated and conducted. The
      Company and each of its Subsidiaries is duly qualified as a foreign corporation
      or limited liability company to do business and is in good standing in each
      jurisdiction in which its ownership or use of property or the nature of the
      business conducted by it makes such qualification necessary, except where the
      failure to be so qualified or in good standing would not have a Material Adverse
      Effect. Neither the Company nor any Subsidiary is in violation of any provision
      of its respective certificate or articles of incorporation, partnership
      agreement, bylaws or other organizational or charter documents, as the same
      may
      have been amended. 

     

    4.2 Authorization;
      Enforcement.
      The
      Company has all requisite corporate power and authority to enter into and
      perform this Agreement and each of the other Transaction Documents and to
      consummate the transactions contemplated hereby and thereby and to issue the
      Shares, in accordance with the terms hereof and thereof. The execution and
      delivery of this Agreement and each of the other Transaction Documents by the
      Company and the consummation by it of the transactions contemplated hereby
      and
      thereby (including without limitation, the issuance of the Shares) have been
      duly authorized by the Company’s Board of Directors and no further consent or
      authorization of the Company, its Board of Directors, or its shareholders is
      required. This Agreement and each of the other Transaction Documents have been
      duly executed and delivered by the Company. This Agreement and each of
      the

     

    
      
        
        

      

      
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    other
      Transaction Documents will constitute upon execution and delivery by the
      Company, a legal, valid and binding obligation of the Company enforceable
      against the Company in accordance with its terms, except as such enforceability
      may be limited by: (i) applicable bankruptcy, insolvency, reorganization,
      moratorium or other similar laws in effect that limit creditors’ rights
      generally; (ii) equitable limitations on the availability of specific remedies;
      (iii) principles of equity (regardless of whether such enforcement is considered
      in a proceeding in law or in equity); and (iv) to the extent rights to
      indemnification and contribution may be limited by federal securities laws
      or
      the public policy underlying such laws.

     

    4.3 Capitalization;
      Valid Issuance of Shares.
      As of
      the date hereof, the authorized capital stock of the Company consists of
      300,000,000 shares of Common Stock, of which 117,285,272
      shares
      are issued and outstanding, and no shares are held by the Company as treasury
      shares, and 20,000,000 shares of preferred stock, of which no shares are issued
      and outstanding. All of such outstanding shares of Common Stock are duly
      authorized, validly issued, fully paid and nonassessable. The Shares have been
      duly authorized and when issued pursuant to the terms hereof will be validly
      issued, fully paid and nonassessable and will not be subject to any
      encumbrances, preemptive rights or any other similar contractual rights of
      the
      shareholders of the Company or any other person. No shares of capital stock
      of
      the Company are subject to preemptive rights or any other similar rights of
      the
      shareholders of the Company or any liens or encumbrances imposed through the
      actions or failure to act of the Company. As of the date hereof, the Company
      had
      outstanding warrants to purchase 13,761,269 shares of Common Stock, options
      to
      purchase 1,185,000 shares
      of
      Common Stock issued under its 2005 Stock Option Plan, as well as 300,000 shares
      of restricted Common Stock issued under its 2005 Restricted Stock Plan. As
      of
      the date of this Agreement, except to the extent described in the preceding
      sentence and Schedule
      4.3
      attached
      hereto, (i) there are no outstanding options, warrants, scrip, rights to
      subscribe for, puts, calls, rights of first refusal, agreements, understandings,
      claims or other commitments or rights of any character whatsoever relating
      to,
      or securities or rights convertible into or exchangeable for any shares of
      capital stock of the Company or any of its Subsidiaries, or arrangements by
      which the Company or any of its Subsidiaries is or may become bound to issue
      additional shares of capital stock, (ii) there are no agreements or arrangements
      under which the Company or any of its Subsidiaries is obligated to register
      the
      sale of any of its or their securities under the 1933 Act (except the
      Registration Rights Agreement) and (iii) there are no anti-dilution or price
      adjustment provisions contained in any security issued by the Company (or in
      any
      agreement providing rights to security holders) that will be triggered by the
      issuance of the Shares. Except as may be described in any documents which have
      been publicly filed by any of the Company's shareholders, to the Company’s
      knowledge, there are no agreements between the Company’s shareholders with
      respect to the voting or transfer of the Company’s capital stock or with respect
      to any other aspect of the Company’s affairs. 

     

    4.4 No
      Conflicts.
      The
      execution, delivery and performance of this Agreement and each of the other
      Transaction Documents by the Company and the consummation by the Company of
      the
      transactions contemplated hereby and thereby (including, without limitation,
      the
      issuance of Shares) will not (i) conflict with or result in a violation of
      any
      provision of the Amended and Restated Articles of Incorporation, as amended,
      of
      the Company or the Amended and Restated Code of By-Laws, as amended, of the
      Company, (ii) violate or conflict with, or result in a breach of any provision
      of, or constitute a default (or an event which with notice or lapse of time
      or
      both could become a default) under, or give to others any rights of termination,
      amendment, acceleration or cancellation of, any material agreement, indenture,
      patent, patent license or instrument to which the Company or any of its
      Subsidiaries is a party, or (iii) result in a violation of any Legal Requirement
      (including federal and state securities laws and regulations and regulations
      of
      any self-regulatory organizations to which the Company or its securities are
      subject) applicable to the Company or any of its Subsidiaries or by which any
      property or asset of the Company or any of its Subsidiaries is bound or affected
      (except for such conflicts, defaults, terminations, amendments, accelerations,
      cancellations and violations as would not, individually or in the aggregate,
      have a Material Adverse Effect). Neither the Company nor any of its Subsidiaries
      is in violation of its

     

    
      
        
        

      

      
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    Certificate
      or Articles of Incorporation, bylaws or other organizational documents and
      neither the Company nor any of its Subsidiaries is in default (and no event
      has
      occurred which with notice or lapse of time would result in a default) under,
      and neither the Company nor any of its Subsidiaries has taken any action or
      failed to take any action that would give to others any rights of termination,
      amendment, acceleration or cancellation of, any agreement or instrument to
      which
      the Company or any of its Subsidiaries is a party or by which any property
      or
      assets of the Company or any of its Subsidiaries is bound or affected, except
      for possible defaults as would not, individually or in the aggregate, have
      a
      Material Adverse Effect. Except with respect to any filings or notices related
      to the issuance of the Shares to be filed with the OTC Bulletin Board, if any,
      and as required under the 1933 Act and any applicable state securities laws,
      the
      Company is not required to obtain any consent, authorization or order of, or
      make any filing or registration with, any court, governmental agency, regulatory
      agency, self regulatory organization or stock market or any third party in
      order
      for it to execute, deliver or perform any of its obligations under the
      Transaction Documents. All consents, authorizations, orders, filings and
      registrations that the Company is required to effect or obtain pursuant to
      the
      preceding sentence have been obtained or effected on or prior to the date
      hereof. 

     

    4.5 SEC
      Documents; Financial Statements. 

     

    a. Since
      December 31, 2004, the Company has timely filed all reports, schedules, forms,
      statements and other documents required to be filed by it with the SEC pursuant
      to the reporting requirements of the 1933 Act and the 1934 Act (all of the
      foregoing filed prior to the date hereof and all exhibits included therein
      and
      financial statements and schedules thereto and documents (other than exhibits
      to
      such documents) incorporated by reference therein, being hereinafter referred
      to
      herein as the “SEC
      Documents”),
      or
      has timely filed for a valid extension of such time of filing and has filed
      any
      such SEC Documents prior to the expiration of any such extension. As of their
      respective dates, the SEC Documents complied in all material respects with
      the
      requirements of the Securities Act and the Exchange Act and the rules and
      regulations of the SEC promulgated thereunder applicable to the SEC Documents,
      and none of the SEC Documents, at the time they were filed with the SEC,
      contained any untrue statement of a material fact or omitted to state a material
      fact required to be stated therein or necessary in order to make the statements
      therein, in light of the circumstances under which they were made, not
      misleading.

     

    b. As
      of
      their respective dates, the financial statements of the Company included in
      the
      SEC Documents complied as to form in all material respects with applicable
      accounting requirements and the published rules and regulations of the SEC
      with
      respect thereto. Such financial statements have been prepared in accordance
      with
      United States generally accepted accounting principles, consistently applied,
      during the periods involved (except (i) as may be otherwise indicated in such
      financial statements or the notes thereto, or (ii) in the case of unaudited
      interim statements, to the extent they may not include footnotes, year end
      adjustments or may be condensed or summary statements) and fairly present in
      all
      material respects the consolidated financial position of the Company and its
      consolidated Subsidiaries as of the dates thereof and the consolidated results
      of their operations and cash flows for the periods then ended (subject, in
      the
      case of unaudited statements, to normal year-end audit adjustments). Except
      as
      set forth in the financial statements of the Company included in the SEC
      Documents, the Company has no liabilities, contingent or otherwise, other than
      (i) liabilities incurred in the ordinary course of business subsequent to
      September 30, 2006, and (ii) obligations under contracts and commitments
      incurred in the ordinary course of business and not required under generally
      accepted accounting principles to be reflected in such financial statements,
      which, individually or taken in the aggregate would not reasonably be expected
      to have a Material Adverse Effect.

     

    c. The
      Company has established and maintains disclosure controls and procedures (as
      such term is defined in Rule 13a-15(e) under the 1934 Act). Such disclosure
      controls and procedures:

     

    
      
        
        

      

      
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    (A)
      are
      designed to ensure that material information relating to the Company and its
      Subsidiaries is made known to the Company’s chief executive officer and its
      chief financial officer by others within those entities, particularly during
      the
      periods in which the Company’s reports and filings under the 1934 Act are being
      prepared, (B) have been evaluated for effectiveness as of the end of the most
      recent annual period reported to the SEC, and (C) are effective to perform
      the
      functions for which they were established. Neither the auditors of the Company
      nor the Board of Directors of the Company has been advised of: (x) any
      significant deficiencies or material weaknesses in the design or operation
      of
      the internal controls over financial reporting (as such term is defined in
      Rule
      13a-15(f) under the 1934 Act) of the Company that have materially affected
      the
      Company’s internal control over financial reporting; or (y) any fraud, whether
      or not material, that involves management or other employees who have a role
      in
      the internal controls over financial reporting of the Company

     

    4.6 Absence
      of Certain Changes.
      Except
      that on May 31, 2006, Magnetech Industrial Services of Alabama, LLC, acquired
      substantially all of the assets of E. T. Smith Services of Alabama, Inc., and
      except with respect to the transactions contemplated hereby and by each of
      the
      other Transaction Documents, since December 31, 2005, (i) the Company and each
      of its Subsidiaries has conducted its business only in the ordinary course,
      consistent with past practice, and since that date, no changes have occurred
      which would reasonably be expected to have a Material Adverse Effect; and (ii)
      the Company has not incurred any liabilities (contingent or otherwise) other
      than (A) trade payables, accrued expenses and other liabilities incurred in
      the
      ordinary course of business consistent with past practice and (B) liabilities
      not required to be reflected on the Company’s financial statements pursuant to
      GAAP or required to be disclosed in filings made with the SEC.

     

    4.7 Absence
      of Litigation.
      Except
      as
      set forth in Schedule
      4.7,
      there
      is no Action pending or, to the knowledge of the Company or any of its
      Subsidiaries, threatened against or affecting the Company or any of its
      Subsidiaries that (i) adversely affects or challenges the legality, validity
      or
      enforceability of this Agreement, or (ii) would, if there were an unfavorable
      decision, have or reasonably be expected to have a Material Adverse Effect.
      Neither the Company nor any of its Subsidiaries, nor any director or officer
      thereof (in his or her capacity as such), is or has been the subject of any
      Action involving a claim of violation of or liability under federal or state
      securities laws or a claim of breach of fiduciary duty. There has not been,
      and
      to the knowledge of the Company, there is not pending any investigation by
      the
      SEC involving the Company or any current or former director or officer of the
      Company (in his or her capacity as such). The SEC has not issued any stop order
      or other order suspending the effectiveness of any registration statement filed
      by the Company under the 1934 Act or the 1933 Act.

     

    4.8 Patents,
      Copyrights.
      The
      Company and each of its Subsidiaries owns or possesses the requisite licenses
      or
      rights to use all patents, patent applications, patent rights, inventions,
      know-how, trade secrets, copyrights, trademarks, trademark applications, service
      marks, service names, trade names and copyrights (“Intellectual
      Property”)
      necessary to enable it to conduct its business as now operated (and, to the
      Company’s knowledge, as presently contemplated to be operated in the future);
      there is no claim or Action by any person pertaining to, or proceeding pending,
      or to the Company’s knowledge threatened, which challenges the right of the
      Company or of a Subsidiary with respect to any Intellectual Property necessary
      to enable it to conduct its business as now operated and to the Company’s
      knowledge, the Company’s or its Subsidiaries’ current products and processes do
      not infringe on any Intellectual Property or other rights held by any person,
      except where any such infringement would not reasonably be expected to have
      a
      Material Adverse Effect.

     

    4.9 Tax
      Status.
      The
      Company and each of its Subsidiaries has made or filed all federal, state and
      foreign income and all other material tax returns, reports and declarations
      required by any jurisdiction to which it is subject (unless and only to the
      extent that the Company and each of its Subsidiaries has set aside on its books
      provisions reasonably adequate for the payment of all unpaid and unreported
      taxes) and

     

    
      
        
        

      

      
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    has
      paid
      all taxes and other governmental assessments and charges that are material
      in
      amount, shown or determined to be due on such returns, reports and declarations,
      except those being contested in good faith and has set aside on its books
      provisions reasonably adequate for the payment of all taxes for periods
      subsequent to the periods to which such returns, reports or declarations apply.
      There are no unpaid taxes in any material amount claimed to be due by the taxing
      authority of any jurisdiction, and the officers of the Company know of no basis
      for any such claim. The Company has not executed a waiver with respect to the
      statute of limitations relating to the assessment or collection of any foreign,
      federal, state or local tax. 

     

    4.10 Permits;
      Compliance. 

     

    a. The
      Company and each of its Subsidiaries is in possession of all franchises, grants,
      authorizations, licenses, permits, easements, variances, exemptions, consents,
      certificates, approvals and orders necessary to own, lease and operate its
      properties and to carry on its business as it is now being conducted
      (collectively, “Permits”),
      and
      there is no Action pending or, to the knowledge of the Company, threatened
      regarding suspension or cancellation of any of the Permits. Neither the Company
      nor any of its Subsidiaries is in conflict with, or in default or violation
      of,
      any of the Permits, except for any such conflicts, defaults or violations which,
      individually or in the aggregate, would not reasonably be expected to have
      a
      Material Adverse Effect.

     

    b. Since
      December 31, 2005, no event has occurred or, to the knowledge of the Company,
      circumstance exists that (with or without notice or lapse of time): (a) would
      reasonably be expected to constitute or result in a violation by the Company
      or
      any of its Subsidiaries, or a failure on the part of the Company or its
      Subsidiaries to comply with, any Legal Requirement; or (b) would reasonably
      be
      expected to give rise to any obligation on the part of the Company or any of
      its
      Subsidiaries to undertake, or to bear all or any portion of the cost of, any
      remedial action of any nature in connection with a failure to comply with any
      Legal Requirement, except in either case that would not reasonably be expected
      to have a Material Adverse Effect. Neither the Company nor any of its
      Subsidiaries has received any notice or other communication from any regulatory
      authority or any other person, nor does the Company have any knowledge
      regarding: (x) any actual, alleged, possible or potential violation of, or
      failure to comply with, any Legal Requirement, or (y) any actual, alleged,
      possible or potential obligation on the part of the Company or any of its
      Subsidiaries to undertake, or to bear all or any portion of the cost of, any
      remedial action of any nature in connection with a failure to comply with any
      Legal Requirement, except in either case that would not reasonably be expected
      to have a Material Adverse Effect.

     

    c. The
      Company is in compliance in all material respects with the provisions of the
      Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated thereunder
      that are applicable to it and has taken reasonable steps such that the Company
      expects to be in a position to comply with the requirements of Section 404
      of
      the Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated
      thereunder at such time as Section 404 becomes applicable to the
      Company.

     

    d. The
      Company is, and has reason to believe that for the foreseeable future it will
      continue to be, in compliance with all applicable rules of the OTC Bulletin
      Board. The Company has not received notice from the OTC Bulletin Board that
      the
      Company is not in compliance with the rules or requirements thereof. The
      issuance and sale of the Shares under this Agreement does not contravene the
      rules and regulations of the OTC Bulletin Board, and no approval of the
      shareholders of the Company is required for the Company to issue the Shares
      as
      contemplated by this Agreement.

     

    4.11 Environmental
      Matters.
      “Environmental
      Laws”
shall
      mean, collectively, all Legal Requirements, including any federal, state, local
      or foreign statute, laws, rule, regulation, ordinance, code, policy or rule
      of
      common law or any judicial or administrative interpretation thereof, including
      any

     

    
      
        
        

      

      
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    judicial
      or administrative order, consent, decree or judgment, relating to pollution
      or
      protection of human health, the environment (including, without limitation,
      ambient air, surface water, groundwater, land surface or subsurface strata)
      or
      wildlife, including, without limitation, laws and regulations relating to the
      release or threatened release of chemicals, pollutants, contaminants, wastes,
      toxic substances, hazardous substances, petroleum or petroleum products
      (collectively, “Hazardous
      Materials”)
      or to
      the manufacture, processing, distribution, use, treatment, storage, disposal,
      transport or handling of Hazardous Materials. Except
      for such matters as could not, singly or in the aggregate, reasonably be
      expected to result in a Material Adverse Effect or as set forth on Schedule
      4.11:
      (i) the
      Company and its Subsidiaries have complied and are in compliance with all
      applicable Environmental Laws;
      (ii)
      without limiting the generality of the foregoing, the Company and its
      Subsidiaries have obtained, have complied, and are in compliance with all
      Permits that are required pursuant to Environmental Laws for the occupation
      of
      their respective facilities and the operation of their respective
      businesses;
      (iii)
none
      of
      the Company or its Subsidiaries has received any written notice, report or
      other
      information regarding any actual or alleged violation of Environmental Laws,
      or
      any liabilities or potential liabilities (including fines, penalties, costs
      and
      expenses), including any investigatory, remedial or corrective obligations,
      relating to any of them or their respective facilities arising under
      Environmental Laws, nor, to the knowledge of the Company is there any factual
      basis therefore; (iv)
      there
      are no underground storage tanks, polychlorinated biphenyls, urea formaldehyde
      or other hazardous substances (other than small quantities of hazardous
      substances for use in the ordinary course of the operation of the Company’s and
      its Subsidiaries’ respective businesses, which are stored and maintained in
      accordance and in compliance with all applicable Environmental Laws), in, on,
      over, under or at any real property
      owned or
      operated by the Company and/or its Subsidiaries; (v)
      there
      are no conditions existing at any real property or with respect to the Company
      or any of its Subsidiaries that require remedial or corrective action, removal,
      monitoring or closure pursuant to the Environmental Laws
      and (vi)
      to the knowledge of the Company, neither the Company nor any of its Subsidiaries
      has contractually, by operation of law, or otherwise amended or succeeded to
      any
      liabilities arising under any Environmental Laws of any predecessors or any
      other Person.

     

    4.12 Title
      to Property.
      Except
      for any lien for current taxes not yet delinquent or which are being contested
      in good faith and by appropriate proceedings, the Company and its Subsidiaries
      have good and marketable title to all real property and all personal property
      owned by them which is material to the business of the Company and its
      Subsidiaries. Any leases of real property and facilities of the Company and
      its
      Subsidiaries are valid and effective in accordance with their respective terms,
      except as would not have a Material Adverse Effect.

     

    4.13 No
      Investment Company or Real Property Holding Company.
      The
      Company is not, and upon the issuance and sale of the Shares as contemplated
      by
      this Agreement will not be, an “investment company” as defined under the
      Investment Company Act of 1940 (“Investment
      Company”).
      The
      Company is not controlled by an Investment Company.
      The
      Company is not a United States real property holding company, as defined under
      the Internal Revenue Code of 1986, as amended.

     

    4.14 No
      Brokers.
      The
      Company has taken no action which would give rise to any claim by any person
      for
      brokerage commissions, transaction fees or similar payments relating to this
      Agreement or the transactions contemplated hereby.

     

    4.15 Registration
      Rights.
      Except
      pursuant to the Registration Rights Agreement, and as otherwise set forth in
      Schedule
      4.15
      effective upon the Closing, neither the Company nor any Subsidiary is currently
      subject to any agreement providing any person or entity any rights (including
      piggyback registration rights) to have any securities of the Company or any
      Subsidiary registered with the SEC or registered or qualified with any other
      governmental authority.

     

    
      
        
        

      

      
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    4.16 Exchange
      Act Registration.
      The
      Common Stock is registered pursuant the 1934 Act, and the Company has taken
      no
      action designed to, or which, to the knowledge of the Company, is likely to
      have
      the effect of, terminating the registration of the Common Stock.

     

    4.17 Labor
      Relations.
      No
      labor or employment dispute exists or, to the knowledge of the Company, is
      imminent or threatened, with respect to any of the employees of the Company
      that
      has, or could reasonably be expected to have, individually or in the aggregate,
      a Material Adverse Effect.

     

    4.18 Transactions
      with Affiliates and Employees.
      Except
      as set forth in the SEC Documents, and Schedule
      4.18,
      none of
      the officers or directors of the Company, and to the knowledge of the Company,
      none of the employees of the Company, is presently a party to any transaction
      or
      agreement with the Company (other than for services as employees, officers
      and
      directors) exceeding $60,000, including any contract, agreement or other
      arrangement providing for the furnishing of services to or by, providing for
      rental of real or personal property to or from, or otherwise requiring payments
      to or from any officer, director or such employee or, to the knowledge of the
      Company, any entity in which any officer, director, or any such employee has
      a
      substantial interest or is an officer, director, trustee or
      partner.

     

    4.19 Insurance.
      The
      Company and its Subsidiaries have insurance policies in full force and effect
      of
      a type, covering such risks and in such amounts, and having such deductibles
      and
      exclusions as are customary for conducting businesses and owning assets similar
      in nature and scope to those of the Company and its Subsidiaries. The amounts
      of
      all such insurance policies and the risks covered thereby are in accordance
      in
      all material respects with all material contracts and agreements to which the
      Company and/or its Subsidiaries is a party and with all applicable Legal
      Requirements. With respect to each such insurance policy: (i) the policy is
      valid, outstanding and enforceable in accordance with its terms, except as
      such
      enforceability may be limited by applicable bankruptcy, insolvency,
      reorganization, moratorium or other similar laws in effect that limit creditors’
rights generally, equitable limitations on the availability of specific remedies
      and principles of equity (regardless of whether such enforcement is considered
      in a proceeding in law or in equity); (ii) neither the Company nor any of its
      Subsidiaries is in breach or default with respect to its obligations thereunder
      in any material respect; and (iii) no party to the policy has repudiated, or
      given notice of an intent to repudiate, any provision thereof.

     

    4.20 Approved
      Acquisitions of Shares; No Anti-Takeover Provisions.
      The
      Board of Directors of the Company has unanimously approved this Agreement and
      taken all other requisite action such that the provisions of any anti-takeover
      laws and regulations of any governmental authority, including without
      limitation, the applicable provisions of the IBCL, and that any provisions
      of an
      anti-takeover nature adopted by the Company or any of its Subsidiaries or
      contained in the Company’s Amended and Restated Articles of Incorporation,
      Amended and Restated Code of Bylaws or the organizational documents of any
      of
      its Subsidiaries, will not apply to the Buyers, this Agreement or any of the
      other Transaction Documents.

     

    4.21 ERISA.
      Based
      upon the Employee Retirement Income Security Act of 1974 (“ERISA”),
      and
      the regulations and published interpretations thereunder: (i) neither the
      Company nor any of its Subsidiaries has engaged in any Prohibited Transactions
      (as defined in Section 406 of ERISA and Section 4975 of the Code); (ii) the
      Company and each of its Subsidiaries has met all applicable minimum funding
      requirements under Section 302 of ERISA in respect to its plans; (iii) neither
      the Company nor any of its Subsidiaries has any knowledge of any event or
      occurrence which would cause the Pension Benefit Guaranty Corporation to
      institute proceedings under Title IV of ERISA to terminate any employee benefit
      plan(s); neither the Company nor any of its Subsidiaries has any fiduciary
      responsibility for investments with respect to any plan existing for the benefit
      of persons other than its or such Subsidiary’s employees; and (v) neither the
      Company nor any of its Subsidiaries has withdrawn, completely or partially,
      from
      any

     

    
      
        
        

      

      
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    multi-employer
      pension plan so as to incur liability under the Multiemployer Pension Plan
      Amendments Act of 1980.

     

    4.22 Company
      Shareholders of Record.
      As of
      December 31, 2006, the Company had 62 “shareholders” as defined in
      Section 4 of Chapter 42 of the IBCL, and is not considered an “Issuing
      Public Corporation” for purposes of Chapter 42 of the IBCL. 

     

    4.23 Disclosure.
      The
      Company understands and confirms that the Buyers will rely on the
      representations and covenants contained herein in effecting the transactions
      contemplated by this Agreement and the other Transaction Documents. All
      representations and warranties provided to the Buyers including the disclosures
      in the Company’s disclosure schedules attached hereto furnished by or on behalf
      of the Company, taken as a whole are true and correct and do not contain any
      untrue statement of material fact or omit to state any material fact necessary
      in order to make the statements made therein, in the light of the circumstances
      under which they were made, not misleading. No event or circumstance has
      occurred or information exists with respect to the Company or its Subsidiaries
      or its or their businesses, properties, prospects, operations or financial
      conditions, which, under applicable law, rule or regulation, requires public
      disclosure or announcement by the Company but which has not been so publicly
      announced or disclosed. 

     

     

    ARTICLE
      5

    COVENANTS

     

    5.1 Form
      D; Blue Sky Laws.
      Upon
      completion of the Closing, the Company shall file with the SEC a Form D with
      respect to the Shares as required under Regulation D and each applicable state
      securities commission and will provide a copy thereof to the Buyers promptly
      after such filing. 

     

    5.2 Use
      of
      Proceeds.
      The
      Company shall use the proceeds from the sale of the Shares (i) first to
      repay in full, all the obligations of the Company and its Subsidiaries to
      Laurus, including all obligations pursuant to the Secured Revolving Note for
      the
      benefit of Laurus, dated August 24, 2005; the Secured Convertible Minimum
      Borrowing Note for the benefit of Laurus, dated August 24, 2005; the Secured
      Convertible Term Note for the benefit of Laurus, dated August 24, 2005; the
      Secured Non-Convertible Revolving Note for the benefit of Laurus, dated May
      31,
      2006; and the Secured Term Note for the benefit of Laurus, dated May 31, 2006
      (the “Laurus
      Obligations”),
      and
      then use any remaining proceeds (ii) to pay $1,500,000 of outstanding accounts
      payable within sixty (60) days after the date of this Agreement, provided that
      if Laurus shall exercise its option to convert a portion of the Laurus
      Obligations to shares of Common Stock, the Company shall pay an additional
      $400,000 of outstanding accounts payable, for payment in total of $1,900,000
      of
      accounts payable; and (iv) for general corporate purposes.
      Notwithstanding the foregoing, if necessary during the renegotiation of the
      Company’s general credit facility, the Company may use the portion of the
      proceeds designated for the payment of outstanding accounts payable for general
      corporate purposes prior to paying any outstanding accounts payable, provided
      that the accounts payable are paid within sixty (60) days after the date of
      this
      Agreement as provided in this Section
      5.2. 

     

    5.3 Expenses.
      At the
      Closing, the Company shall reimburse the Buyers for all reasonable expenses
      incurred by them in connection with the negotiation, preparation, execution,
      delivery and performance of this Agreement and the other Transaction Documents
      and its due diligence review of the Company, including, without limitation,
      reasonable attorneys’ fees and expenses, and out-of-pocket travel costs and
      expenses.

     

    5.4 Intentionally
      Omitted.

     

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    5.5 No
      Integration.
      The
      Company shall not make any offers or sales of any security (other than the
      Shares) under circumstances that would require registration of the Shares being
      offered or sold hereunder under the 1933 Act or cause the offering of the Shares
      to be integrated with any other offering of securities by the Company in such
      a
      manner as would require the Company to seek the approval of its stockholders
      for
      the issuance of the Shares under any stockholder approval provision applicable
      to the Company or its securities.

     

    5.6 Board
      Designee(s).
      For as
      long as the Buyers or their affiliates hold (i) at least 10% of the then issued
      and outstanding Common Stock, the Buyers shall have the right to appoint one
      member of the Company’s Board of Directors; and (ii) at least 20% of the then
      issued and outstanding Common Stock, the Buyers shall have the right to appoint
      (a) one member of the Company’s Board of Directors if the Company’s Board of
      Directors consists of five or fewer directors; and (b) two members of the
      Company’s Board of Directors if the Company’s Board of Directors consists of six
      or more directors. Notwithstanding anything to the contrary contained in this
      Agreement, the Amended and Restated Articles of Incorporation, as amended,
      of
      the Company, or the Amended and Restated Code of By-Laws of the Company, as
      amended, for as long as the Buyers have the right to appoint directors pursuant
      to this Section 5.6,
      the
      Company’s Board of Directors shall be comprised of no more than seven
      directors.

     

    5.7 Observation
      Rights.
      In
      addition to the rights to nominate one or more directors provided in
Section 5.6,
      for
      such time as the Buyers or their affiliates continue to hold at least 10% of
      the
      total issued and outstanding Common Stock, the Company and its Subsidiaries
      shall extend Observation Rights (as defined below) to Buyers or their
      affiliates. For purposes of this Section, the term “Observation
      Rights”
shall
      mean the right of Buyers or their affiliates to have a representative (an
“Observer”)
      attend
      as an observer all meetings (including telephonic meetings) of the Boards of
      Directors of the Company and its Subsidiaries and their respective committees.
      The Observer shall receive prior written notice of all meetings of the Boards
      of
      Directors of the Company and its Subsidiaries and their respective committees
      at
      the same time that notice of such meetings is given to the directors and shall
      receive all materials and information provided from time to time to the members
      of the Boards of Directors of the Company and its Subsidiaries and their
      respective committees. Subject to ordinary and reasonable procedural rules,
      the
      Observer may participate in a meaningful manner in discussions of matters
      brought to the Board of Directors, and shall be permitted to pose questions
      and
      the Board of Directors shall provide complete responses to the questions posed.
      For the avoidance of doubt, the Observer shall not be deemed to be a member
      of
      the Board of Directors or any committee of the Company and its Subsidiaries.
      The
      Company shall reimburse the Observer for the out-of-pocket expenses of the
      Observer in attending such meetings on the same basis that the directors are
      reimbursed for their out-of-pocket expenses. Notwithstanding anything to the
      contrary contained herein, the Observation Rights shall be conditioned on the
      Observer maintaining the confidentiality of all material non-public material
      and
      information provided to the Observer and the Boards of Directors and committees
      of the Company and its Subsidiaries in accordance with procedures and policies
      established from time to time in writing by the Company and its Subsidiaries
      and
      provided to the Observer; however, notwithstanding any such procedures, the
      Observer shall be permitted to (A) provide, on a confidential basis, such
      material and information to the Buyers and their affiliates and their respective
      managers, partners, directors, officers, representatives, advisers, auditors,
      examiners and counsel who have agreed in writing to observe the confidentiality
      provisions of this Section 5.7,
      and (B)
      provided the Observer gives prior written notice to the Company, disclose such
      material and information in accordance with applicable laws or legal process,
      in
      any litigation or other proceedings under this Agreement or in accordance with
      regulatory requirements. 

     

    5.8 Participation
      in Future Issuances.
      The
      Buyers shall have the right to participate in any future offerings, sales or
      exchanges by the Company of Common Stock or securities convertible into or
      exercisable for Common Stock (each, a “Future
      Offering”)
      so as
      to maintain each Buyer’s percentage 

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    ownership,
      on a fully diluted basis, of the Common Stock immediately prior to such
      offerings. For purposes of this Section
      5.8,
      however, a Future Offering shall not include the issuance of options, restricted
      stock or similar securities by the Company in accordance with the terms of
      any
      employee benefit or compensation plan adopted by the Company’s Board of
      Directors. Each Buyer shall be entitled to receive written notice of any Future
      Offering (an “Offering
      Notice”)
      at
      least 15 days prior to the proposed closing date of such Future Offering, which
      Offering Notice must include a description of the securities to be offered,
      sold
      or exchanged, including the price and other terms upon which they are to be
      issued, sold or exchanged, the parties to whom such securities are being
      offered, sold or exchanged and the number or amount of the offered securities
      to
      be issued, sold or exchanged. If either or both of the Buyers elect to
      participate in a Future Offering, such Buyer or Buyers must give written notice
      of such election to the Company within 7 days following the receipt by such
      Buyer or Buyers of the Offering Notice. Such participation by such Buyer or
      Buyers in any Future Offering shall be at the same price and otherwise on the
      same terms as those described in the Offering Notice. 

     

    5.9 Future
      Acquisitions.
      The
      Company shall not revoke its approval of the acquisition of up to 30% of the
      Common Stock on a fully diluted basis by the Buyers. The Company shall use
      its
      best efforts to ensure that any future acquisitions of the Common Stock by
      the
      Buyers (up to 30% of the of the outstanding Common Stock on a fully diluted
      basis) shall not be made subject to the provisions of any anti-takeover laws
      and
      regulations of any governmental authority, including without limitation, the
      applicable provisions of the IBCL, and any provisions of an anti-takeover nature
      adopted by the Company or any of its Subsidiaries or contained in the Company’s
      Amended and Restated Articles of Incorporation, Amended and Restated Code of
      Bylaws or the organizational documents of any of its Subsidiaries. The Buyers
      acknowledge and agree that they will obtain written approval from the Company’s
      Board of Directors before the Buyer and their affiliates acquire in excess
      of
      thirty percent (30%) of the Common Stock computed on a fully-diluted basis,
      provided, however that this covenant shall not apply to (a) any increase in
      the
      percentage ownership of Common Stock of the Buyers and their affiliates due
      to a
      redemption or repurchase by the Company of any of its Common Stock, or (b)
      any
      instances where the Buyers and their affiliates inadvertently acquires in excess
      of 30% of the Common Stock on a fully-diluted basis, provided that in such
      case
      the Buyers shall notify the Company in writing promptly upon discovery of such
      inadvertent acquisition, and the Buyers and their affiliates shall promptly
      take
      all such actions as are necessary to cure such circumstance within thirty (30)
      days of providing such notice unless the Company’s Board of Directors approves
      such inadvertent acquisition. 

     

    

     

     

    ARTICLE
      6

    CONDITIONS
      TO THE COMPANY’S OBLIGATION

     

    The
      obligation of the Company hereunder to issue and sell the Shares to the Buyers
      at the Closing is subject to the satisfaction, at or before the Closing Date,
      of
      each of the following conditions thereto, provided that these conditions are
      for
      the Company’s sole benefit and may be waived by the Company at any time in its
      sole discretion:

     

    6.1 Delivery
      of Transaction Documents.
      The
      Buyers shall have executed and delivered the Transaction Documents to the
      Company.

     

    6.2 Payment
      of Purchase Price.
      The
      Buyers shall have delivered the Purchase Price in accordance with Section
      2.2
      above.

     

    6.3 Representations
      and Warranties.
      The
      representations and warranties of the Buyers shall be true and correct in all
      material respects (provided, however, that such qualification shall only apply
      to 

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    representations
      or warranties not otherwise qualified by materiality) as of the date when made
      and as of the Closing Date as though made at that time (except for
      representations and warranties that speak as of a specific date), and the
      applicable Buyer shall have performed, satisfied and complied in all material
      respects with the covenants, agreements and conditions required by this
      Agreement to be performed, satisfied or complied with by the applicable Buyer
      at
      or prior to the Closing Date. 

     

    6.4 Litigation.
      No
      litigation, statute, rule, regulation, executive order, decree, ruling or
      injunction shall have been enacted, entered, promulgated or endorsed by or
      in
      any court or governmental authority of competent jurisdiction or any
      self-regulatory organization having authority over the matters contemplated
      hereby which prohibits the consummation of any of the transactions contemplated
      by this Agreement.

     

     

    ARTICLE
      7

    CONDITIONS
      TO THE BUYERS’ OBLIGATION

     

    The
      obligation of the Buyers hereunder to purchase the Shares at the Closing is
      subject to the satisfaction, at or before the Closing Date, of each of the
      following conditions, provided that these conditions are for the Buyers’ sole
      benefit and may be waived by the Buyers at any time in its sole
      discretion:

     

    7.1 Delivery
      of Transaction Documents; Issuance of Shares.
      The
      Company shall have executed and delivered the Transaction Documents to the
      Buyers, and shall deliver the Transfer Instructions to the transfer agent for
      the Company’s Common Stock to issue certificates in the name of each Buyer
      representing the Shares being purchased by such Buyer. The Company shall deliver
      a copy of the Transfer Instructions to the Buyers at the Closing.

     

    7.2 Representations
      and Warranties.
      The
      representations and warranties of the Company shall be true and correct in
      all
      material respects (provided, however, that such qualification shall only apply
      to representations or warranties not otherwise qualified by materiality) as
      of
      the date when made and as of the Closing Date as though made at such time
      (except for representations and warranties that speak as of a specific date)
      and
      the Company shall have performed, satisfied and complied in all material
      respects with the covenants, agreements and conditions required by this
      Agreement to be performed, satisfied or complied with by the Company at or
      prior
      to the Closing Date.

     

    7.3 Consents.
      Any
      consents or approvals required to be secured by the Company for the consummation
      of the transactions contemplated by the Transaction Documents shall have been
      obtained and shall be reasonably satisfactory to the Buyers. 

     

    7.4 Litigation.
      No
      Action shall have been enacted, entered, promulgated or endorsed by or in any
      court or governmental authority of competent jurisdiction or any self-regulatory
      organization having authority over the matters contemplated hereby which
      prohibits the consummation of any of the transactions contemplated by this
      Agreement.

     

    7.5 Opinion.
      The
      Buyers shall have received an opinion of the Company’s counsel, dated as of the
      Closing Date, in form, scope and substance reasonably satisfactory to the Buyers
      with respect to the matters set forth in Exhibit
      B
      attached
      hereto.

     

    7.6 No
      Material Adverse Change.
      There
      shall have been no material adverse change in the assets, liabilities
      (contingent or otherwise), affairs, business, operations, prospects or condition
      (financial or otherwise) of the Company prior to the Closing Date.

     

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    7.7 Board
      Approval.
      The
      Board of Directors of the Company shall have adopted irrevocable resolutions
      approving on or prior to the Closing Date the acquisition by the Buyers and
      their affiliates of up to 30% of the Common Stock, on a fully diluted basis,
      including the acquisition of the Shares so that the Buyers and their affiliates
      are not subject to the restrictions to Section 18 or Section 19 of Chapter
      43 of
      the Indiana Business Corporation Law, as the same may be amended.

     

    7.8 Irrevocable
      Proxy.
      The
      Buyers shall receive an irrevocable proxy from John A. Martell in the form
      attached hereto as Exhibit
      C.

     

     

    ARTICLE
      8

    INDEMNIFICATION

     

    8.1 Indemnification
      by the Company.
      The
      Company agrees to indemnify each Buyer and its affiliates and hold each Buyer
      and its affiliates harmless from and against any and all liabilities, losses,
      damages, costs and expenses of any kind (including, without limitation, the
      reasonable fees and disbursements of such Buyer’s counsel in connection with any
      investigative, administrative or judicial proceeding), which may be incurred
      by
      such Buyer or such affiliates as a result of any claims made against such Buyer
      or such affiliates by any person that relate to or arise out of (i) any breach
      by the Company of any of its representations, warranties or covenants contained
      in this Agreement or in the Transaction Documents (other than the Registration
      Rights Agreement, which contains separate indemnification provisions), or (ii)
      any litigation, investigation or proceeding instituted by any person with
      respect to this Agreement or the Shares (excluding, however, any such
      litigation, investigation or proceeding which arises solely from the acts or
      omissions of such Buyer or its affiliates).

     

    8.2 Notification.
      Any
      person entitled to indemnification hereunder (“Indemnified
      Party”)
      will
      (i) give prompt notice to the Company, of any third party claim, action or
      suit
      with respect to which it seeks indemnification (the “Claim”)
      (but
      omission of such notice shall not relieve the Company from liability hereunder
      except to the extent it is actually prejudiced by such failure to give notice),
      specifying
      in reasonable detail the factual basis for the Claim, the amount thereof,
      estimated in good faith, and the method of computation of the Claim, all with
      reasonable particularity and containing a reference to the provisions of this
      Agreement in respect of which such indemnification is sought with respect to
      the
      Claim,
      and (ii)
      unless in such Indemnified Party’s reasonable judgment a conflict of interest
      may exist between such Indemnified Party and the Company with respect to such
      claim, permit the Company to assume the defense of the Claim with counsel
      reasonably satisfactory to the Indemnified Party. The Indemnified Party shall
      cooperate
      fully with the Company
      with
      respect to the defense of the Claim and, if
      the Company elects to assume control of the defense of the Claim, the
      Indemnified Party shall have the right to participate in the defense of the
      Claim at its own expense. If the Company does not elect to assume control or
      otherwise participate in the defense of the Claim, then the Indemnified Party
      may defend through counsel of its own choosing. If
      such
      defense is not assumed by the Company, the Company will not be subject to any
      liability under this Agreement or otherwise for any settlement made without
      its
      consent (but such consent will not be unreasonably withheld or delayed). If
      the
      Company elects not to or is not entitled to assume the defense of a Claim,
      it
      will not be obligated to pay the fees and expenses of more than one counsel
      for
      all Indemnified Parties with respect to the Claim, unless an actual conflict
      of
      interest exists between such Indemnified Party and any other of such Indemnified
      Parties with respect to the Claim, in which event the Company will be obligated
      to pay the fees and expenses of such additional counsel or counsels. 

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      9

    GOVERNING
      LAW; MISCELLANEOUS

     

    9.1 Governing
      Law.
      This
      Agreement shall be enforced, governed by and construed in accordance with the
      laws of the State of Indiana applicable to agreements made and to be performed
      entirely within such state, without regard to the principles of conflict of
      laws. The parties hereto hereby submit to the exclusive jurisdiction of the
      United States Federal Courts located in the Northern District of Indiana with
      respect to any dispute arising under this Agreement, the agreements entered
      into
      in connection herewith or the transactions contemplated hereby or thereby.
      All
      parties irrevocably waive the defense of an inconvenient forum to the
      maintenance of such suit or proceeding. All parties further agree that service
      of process upon a party mailed by first class mail shall be deemed in every
      respect effective service of process upon the party in any such suit or
      proceeding. Nothing herein shall affect any party’s right to serve process in
      any other manner permitted by law. All parties agree that a final non-appealable
      judgment in any such suit or proceeding shall be conclusive and may be enforced
      in other jurisdictions by suit on such judgment or in any other lawful manner.
      The party which does not prevail in any dispute arising under this Agreement
      shall be responsible for all reasonable fees and expenses, including reasonable
      attorneys’ fees, incurred by the prevailing party in connection with such
      dispute.

     

    9.2 Counterparts;
      Electronic Signatures.
      This
      Agreement may be executed in one or more counterparts, each of which shall
      be
      deemed an original but all of which shall constitute one and the same agreement
      and shall become effective when counterparts have been signed by each party
      and
      delivered to the other party. This Agreement, once executed by a party, may
      be
      delivered to the other party hereto by electronic transmission of a copy of
      this
      Agreement bearing the signature of the party so delivering this
      Agreement.

     

    9.3 Headings.
      The
      headings of this Agreement are for convenience of reference only and shall
      not
      form part of, or affect the interpretation of, this Agreement. 

     

    9.4 Severability.
      In the
      event that any provision of this Agreement is invalid or unenforceable under
      any
      applicable statute or rule of law, then such provision shall be deemed
      inoperative to the extent that it may conflict therewith and shall be deemed
      modified to conform to such statute or rule of law. Any provision hereof which
      may prove invalid or unenforceable under any law shall not affect the validity
      or enforceability of any other provision hereof.

     

    9.5 Entire
      Agreement; Amendments.
      This
      Agreement and the instruments referenced herein contain the entire understanding
      of the parties with respect to the matters covered herein and therein and
      supersede all previous understandings or agreements between the parties with
      respect to such matters. No provision of this Agreement may be waived other
      than
      by an instrument in writing signed by the party to be charged with enforcement.
      The provisions of this Agreement may be amended only by a written instrument
      signed by the Company and the Buyers.

     

    9.6 Notices.
      Any
      notices required or permitted to be given under the terms of this Agreement
      shall be sent by certified or registered mail (return receipt requested) or
      delivered personally or by courier (including a recognized overnight delivery
      service) or by facsimile and shall be effective five days after being placed
      in
      the mail, if mailed by regular United States mail, or upon receipt, if delivered
      personally or by courier (including a recognized overnight delivery service)
      or
      by facsimile, in each case addressed to a party. The addresses for such
      communications shall be:

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    

     

    
      	
              If
                to the Company:

               

            	 
	 	
              MISCOR
                Group, Ltd.

            
	 	
              1125
                South Walnut Street

            
	 	
              South
                Bend, Indiana 46619

            
	 	
              Attention:

            	
              John
                A. Martell and 

            
	 	 	
              James
                M. Lewis, Esq.

            
	 	
              Telephone:

            	
              (574)
                234-8131

            
	 	
              Facsimile:

            	
              (574)
                232-7648

            
	 	 	 
	
              With
                copy to:

               

            	 
	 	
              Barnes
                & Thornburg LLP

            
	 	
              100
                N. Michigan, Suite 600

            
	 	
              South
                Bend, Indiana 46601

            
	 	
              Attention:
                Richard L. Mintz, Esq.

            
	 	
              Telephone:
                (574) 234-1171

            
	 	
              Facsimile:
                (574) 237-1125

            
	 	 	 
	
              If
                to the Buyers:

               

            	 
	 	
              Tontine
                Capital Partners, L.P.

            
	 	
              55
                Railroad Avenue, 1st Floor

            
	 	
              Greenwich,
                Connecticut 06830

            
	 	
              Attention:
                Mr. Jeffrey L. Gendell

            
	 	
              Telephone:
                (203) 769-2000

            
	 	
              Facsimile:
                (203) 769-2010

            
	 	 	 
	
              With
                copy to:

               

            	 
	 	
              Barack
                Ferrazzano Kirschbaum Perlman & Nagelberg LLP

            
	 	 	 
	 	
              Until
                June 30, 2007:

            
	 	
              333
                W. Wacker Drive, Suite 2700

            
	 	
              Chicago,
                Illinois 60606

            
	 	 	 
	 	
              After
                June 30, 2007:

            
	 	
              200
                W. Madison Street, Suite 3900

            
	 	
              Chicago,
                Illinois 60606

            
	 	 	 
	 	
              Attention:
                John E. Freechack, Esq.

            
	 	
              Telephone:

            	
              (312)
                984-3100

            
	 	
              Facsimile:
                

            	
              (312)
                984-3150

            

    

    

     

    Each
      party shall provide notice to the other party of any change in
      address.

     

    9.7 Successors
      and Assigns.
      This
      Agreement shall be binding upon and inure to the benefit of the parties and
      their successors and assigns. Neither the Company nor any Buyer shall assign
      this 

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    Agreement
      or any rights or obligations hereunder without the prior written consent of
      the
      other parties hereto. 

     

    9.8 Third
      Party Beneficiaries.
      This
      Agreement is intended for the benefit of the parties hereto and their respective
      permitted successors and assigns, and is not for the benefit of, nor may any
      provision hereof be enforced by, any other person.

     

    9.9 Publicity.
      The
      Company and the Buyers shall have the right to review a reasonable period of
      time before issuing any press releases or any other public statements with
      respect to the transactions contemplated hereby; provided, however, that the
      Company shall be entitled, without the prior approval of the Buyers, to make
      any
      press release with respect to such transactions as is required by applicable
      law
      and regulations (although the Buyers shall be consulted by the Company in
      connection with any such press release prior to its release and shall be
      provided with a copy thereof and be given an opportunity to comment thereon).
      Notwithstanding the foregoing, the Company shall file with the SEC a Form 8-K
      disclosing the transactions herein within four (4) business days of the Closing
      Date and attach the relevant agreements and instruments to either such Form
      8-K
      or the Company’s Annual Report on Form 10-K for the year ended December 31,
      2006, and the Buyers may make such filings as may be required under Section
      13
      and Section 16 of the 1934 Act.

     

    9.10 Further
      Assurances.
      Each
      party shall do and perform, or cause to be done and performed, all such further
      acts and things, and shall execute and deliver all such other agreements,
      certificates, instruments and documents, as the other party may reasonably
      request in order to carry out the intent and accomplish the purposes of this
      Agreement and the consummation of the transactions contemplated
      hereby.

     

    9.11 No
      Strict Construction.
      The
      language used in this Agreement will be deemed to be the language chosen by
      the
      parties to express their mutual intent, and no rules of strict construction
      will
      be applied against any party.

     

    9.12 Rights
      Cumulative.
      Each
      and all of the various rights, powers and remedies of the parties shall be
      considered cumulative with and in addition to any other rights, powers and
      remedies which such parties may have at law or in equity in the event of the
      breach of any of the terms of this Agreement. The exercise or partial exercise
      of any right, power or remedy shall neither constitute the exclusive election
      thereof nor the waiver of any other right, power or remedy available to such
      party.

     

    9.13 Survival.
      Any
      covenant or agreement in this Agreement required to be performed following
      the
      Closing Date, shall survive the Closing Date. Without limitation of the
      foregoing, the respective representations and warranties given by the parties
      hereto shall survive the Closing Date and the consummation of the transactions
      contemplated herein, but only for a period of the earlier of (i) eighteen (18)
      months following the Closing Date and (ii) the applicable statute of limitations
      with respect to each representation and warranty, and thereafter shall expire
      and have no further force and effect; provided, however, that (a) the
      representations and warranties of the Company made in Sections 4.1,
      4.2,
      4.3
      and
4.9
      shall
      survive the Closing Date and the consummation of the transactions contemplated
      herein for a period of the earlier of (x) five (5) years following the Closing
      Date and (y) the applicable statute of limitations with respect to each such
      representation and warranty and (b) the representations and warranties of the
      Company made in Sections 4.5,
      4.6
      and
4.23
      shall
      survive the Closing Date and the consummation of the transactions contemplated
      herein for a period of the earlier of (x) four (4) years following the Closing
      Date and (y) the applicable statute of limitations with respect to each such
      representation and warranty.

     

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    9.14 Knowledge.
      The
      term "knowledge of the Company" or any similar formulation of knowledge shall
      mean, the actual knowledge of any of John A. Martell, Richard J. Mullin and
      James M. Lewis after reasonable inquiry made by them of the appropriate
      personnel or representatives of the Company or any of its
      Subsidiaries. 

     

    [Signature
      Page Follows]

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the undersigned have caused this Agreement to be duly executed
      as of the date first above written.

     

    
      	 	
              COMPANY:

            
	 	 	 
	 	
              MISCOR
                GROUP, LTD.

            
	 	 	 
	 	
              By:
                

            	 
	 	
              Name:

            	 
	 	
              Title:
                

            	 
	 	 	 
	 	 	 
	 	
              BUYERS:

            
	 	 	 
	 	
              TONTINE
                CAPITAL PARTNERS, L.P.

            
	 	 	 
	 	
              By:

            	
              Tontine
                Capital Management, LLC, its general partner

            
	 	 	 
	 	 	 
	 	
              By:

            	 
	 	 	
              Jeffrey
                L. Gendell, as managing member

               

            
	 	 	 
	 	
              Total
                Number of Shares: 50,000,000

               

            
	 	
              Total
                Purchase Price: $10,000,000

               

            
	 	
              Form
                of Entity and Jurisdiction of Organization:

               

            
	 	
              Delaware
                Limited Partnership

               

            
	 	 	 
	 	
              TONTINE
                CAPITAL OVERSEAS MASTER FUND, L.P.

            
	 	 	 
	 	
              By:

            	
              Tontine
                Capital Overseas GP, L.L.C., its general partner

            
	 	 	 
	 	 	 
	 	
              By:

            	 
	 	 	
              Jeffrey
                L. Gendell, as managing member

               

            
	 	 	 
	 	
              Total
                Number of Shares: 12,500,000

               

            
	 	
              Total
                Purchase Price: 2,500,000

               

            
	 	
              Form
                of Entity and Jurisdiction of Organization:

               

            
	 	
              Cayman
                Islands Limited Partnership

               

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      A

     

    Form
      of Registration Rights Agreement

     

     

     

     

     

     

     

     

     

    
      
        A-1

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      B

     

    Form
      of Legal Opinion

     

    1.
      The
      Company and each of its Subsidiaries is a corporation, validly existing and
      in
      good standing under the laws of the state of the jurisdiction in which it is
      incorporated. The Company and each of its Subsidiaries is duly qualified as
      a
      foreign corporation to do business and is in good standing in each jurisdiction
      in which its ownership or use of property or the nature of the business
      conducted by it makes such qualification necessary.

     

    2.
      The
      Company has all necessary corporate power and authority to execute, deliver
      and
      perform its obligations under each of the Transaction Documents. The execution,
      delivery and performance of each of the Transaction Documents has been duly
      authorized by all necessary corporate action on the part of the
      Company.

     

    3.
      The
      Company has all requisite corporate power and authority to own and operate
      its
      property and to conduct the business in which it is currently
      engaged.

     

    4.
      Each
      of the Transaction Documents has been duly executed and delivered by the Company
      and constitutes the legal, valid and binding obligation of the Company,
      enforceable against the Company in accordance with its terms.

     

    5.
      The
      issuance, sale and delivery of the Shares and the execution, delivery and
      performance by the Company of the Transaction Documents and the consummation
      by
      the Company of the transactions contemplated thereby do not (i) violate or
      result in a breach of or default under the Amended and Restated Articles of
      Incorporation, as amended, Amended and Restated Code of By-laws or other
      governing documents of the Company or any applicable requirement of law; or
      (ii)
      to our knowledge, result in the creation or imposition of any lien upon any
      of
      the assets of the Company pursuant to the terms of any contractual
      obligation.

     

    6.
      To our
      knowledge, there are no actions, suits, proceedings, claims or disputes pending
      or threatened against, or affecting, the Company, at law, in equity, in
      arbitration or before any governmental authority that contest or affect the
      execution, validity or performance of the Transaction Documents or are likely
      to
      have a Material Adverse Effect.

     

    7.
      Except
      for filings, authorizations or approvals contemplated by the Agreement, to
      our
      knowledge no authorizations or approvals of, and no filings with, any
      governmental authority are necessary or required for the execution, delivery
      or
      performance by, or enforcement against, the Company of any of the Transaction
      Documents.

     

    8.
      The
      Shares are duly authorized and, when issued and sold to the Purchasers after
      payment therefor in accordance with the terms of the Transaction Documents,
      will
      be validly issued, fully paid and non-assessable. 

     

    9.
      There
      are no statutory, or to our knowledge, contractual preemptive, rights of first
      refusal or similar rights with respect to the issuance and sale of the Common
      Stock.

     

    10.
      Assuming that the representations made by the Purchasers in the Agreement are
      true and correct and that any required filings are made pursuant to Rule 503
      of
      Regulation D as promulgated under the Securities Act of 1933, the offering,
      sale
      and issuance of the shares pursuant to the Agreement do not require registration
      under the Securities Act of 1933 and the rules promulgated thereunder as they
      currently exist or registration or qualification under any state securities
      laws.

     

    
      
        B-1

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      C

     

    Form
      of Irrevocable Proxy

     

     

     

     

     

     

     

     

    C-1

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