Document:

Exhibit
4.25

 

 

13 FEBRUARY 2003

 

 

AMENDMENT AGREEMENT IN RESPECT
OF A

€800,000,000 SENIOR FACILITY
AGREEMENT

DATED 8 AUGUST 2001 (AS
AMENDED)

 

 

CABLEUROPA,
S.A.U.

on
behalf of itself and as agent and representative of each other Obligor

 

 

and

 

 

BANC
OF AMERICA SECURITIES LIMITED

on
behalf of itself and as Agent for each of the Beneficiaries

 

 

Latham & Watkins

99 Bishopsgate

London  EC2M 3XF

 

 

THIS AGREEMENT is
made on 13 February 2003 between the following parties

 

(1)                                CABLEUROPA,
S.A.U. on behalf of itself and as agent and representative of
each Obligor (“Cableuropa”); and

 

(2)                                 BANC OF
AMERICA SECURITIES LIMITED on behalf of itself and as
Agent for each of the Beneficiaries (the “Agent”).

 

WHEREAS:

 

A.                                    The parties hereto, among others, have entered into the
Original Facility Agreement.

 

B.                                    The Agent and Cableuropa have agreed to amend and
restate the Original Facility Agreement on the terms set out below.

 

In the presence of a Madrid Notary Public (Notario), Mr. Fernando
Molina Stranz, whose intervention has been required by the parties hereto, IT IS AGREED
as follows

 

1                                         INTERPRETATION

 

1.1                               Definitions         In
this Agreement the following terms have the meanings given to them in this
Clause 1.1:

 

“Amended and Restated Facility Agreement”
means the Original Facility Agreement, as amended and restated by this
Agreement in the form set out in the Exhibit hereto.

 

“Original Facility Agreement” means the
€800,000,000 senior facility agreement dated 8 August 2001, as amended pursuant
to the terms of amendment agreements dated 5 November 2001, 21 December 2001
and 15 October 2002, and made between Cableuropa as agent and representative of
each Obligor, Cableuropa and each of the other parties named therein as a
Borrower, Cableuropa and each of the other parties named therein as a
Guarantor, the financial institutions named therein as Lead Arrangers, the
Agent, Banc of America Securities Limited as Security Agent and the persons
named therein as Lenders, and notarised in the presence of a Madrid Notary
Public (Notario), Mr. Fernando
Molina Stranz, on that date.

 

1.2                               Original
Facility Agreement Definitions         Unless
the context otherwise requires or unless otherwise defined in this Agreement,
words and expressions defined or construed in the Original Facility Agreement shall have the same meanings and
constructions when used in this Agreement.

 

1.3                               Third Party
Rights         A
person who is not a party to this Agreement has no right under the Contracts
(Rights of Third Parties) Act 1999 to enforce or enjoy the benefit of any term
of this Agreement.

 

1.4                               Agreements         Save
where the contrary is indicated, any reference in this Agreement to this
Agreement or any other agreement or document shall be construed as a reference
to this Agreement or, as the case may be, such other agreement or document as
the same may have been, or may from time to time be, amended, varied, novated
or supplemented in accordance with the terms thereof.

 

1.5                               Construction         In this Agreement, unless the
context otherwise requires, words importing the plural should include the
singular and vice versa.

 

1

 

2                                         AMENDMENT AND
RESTATEMENT OF THE ORIGINAL FACILITY AGREEMENT

 

With
effect from the date hereof the Original
Facility Agreement shall be amended and restated so that it shall be
read and construed for all purposes as set out in the Exhibit hereto and the
rights and obligations of the parties thereto shall be governed by, and
construed in accordance with, the terms of the Amended and Restated Facility
Agreement.

 

3                                         REPRESENTATIONS
AND WARRANTIES

 

On
the date of this Agreement, Cableuropa represents and warrants to the Agent the
representations and warranties set out in paragraphs (a), (b) and (d) to (g) of
Clause 17.1 (Legal Representations)
and paragraph (t) of Clause 17.2 (Factual
Representations) of the Amended and Restated Facility Agreement but
as if references therein to the Facility Documents were to this Agreement and
the Amended and Restated Facility Agreement.

 

4                                         FACILITY DOCUMENTS
AND SECURITY

 

4.1                               Facility
Document         Each
of Cableuropa and the Agent hereby agree that this Agreement shall constitute a
Facility Document.

 

4.2                               Security       Cableuropa
(on behalf of itself and each other Obligor) hereby confirms that the obligations
of the Obligors under the Security Documents to which they are a party as at
the date hereof (a list of which is attached hereto as Schedule 1 (Security Documents)), and the obligations
of the Guarantors under the guarantee in the Facility Agreement, remain in full
force and effect notwithstanding the amendment and restatement of the Original
Facility Agreement as set out herein.

 

5                                         CURRENT
OUTSTANDING AMOUNTS

 

Each of Cableuropa and the Agent hereby confirm that as at the date
hereof the principal amount and accrued but unpaid interest thereon outstanding
under each Facility is:

 

(a)                                  Facility A:
€65,000,000 plus accrued but unpaid interest of €1,391,406.25;

 

(b)                                 Facility B:
€205,000,000 plus accrued but unpaid interest of  €2,033,090.00;

 

(c)                                  Facility C:
€45,000,000 plus accrued but unpaid interest of  €593,280.00;

 

(d)                                 Facility D: €0; and

 

(e)                                  Facility E: €0,

 

and in each case the relevant Borrower was Cableuropa.

 

6                                         CONTINUITY AND
FURTHER ASSURANCE

 

6.1                               Continuing
Obligations     The
provisions of the Original Facility Agreement shall, save as amended in this
Agreement, continue in full force and effect. 
References in the Original
Facility Agreement to “this Agreement”, “herein”, “hereunder” and similar terms
and to any provision or Schedule of the Original Facility Agreement shall be
construed as a reference thereto as amended and restated by this Agreement.

 

2

 

6.2                               Further
Assurance         Cableuropa
shall at the request of the Agent, and at its own expense, do all such acts and
things necessary or desirable to give effect to the amendments to be effected
pursuant to this Agreement.

 

7                                         COSTS AND
EXPENSES

 

7.1                               Transaction
Expenses         Without
double counting under Clause 39.2 (Amendment
Costs) of the Original Facility
Agreement, Cableuropa shall, on demand of the Agent, reimburse the Agent for
all reasonable costs and expenses (including legal and notarial fees) together
with any VAT incurred by it in connection with the negotiation, preparation,
execution and translation of this Agreement and the completion of the
transactions contemplated herein.

 

7.2                               Stamp Taxes         Without
double counting under Clause 34.3 (Stamp
Taxes) of the Original Facility
Agreement, Cableuropa shall pay all stamp, registration and other taxes to
which this Agreement is or at any time may be subject and Cableuropa shall,
from time to time on demand from the Agent, indemnify the Agent against any
liabilities, costs, claims and expenses resulting from any failure to pay or
any delay in paying any such tax.

 

8                                         REMEDIES AND
WAIVERS

 

No failure to exercise, nor any delay in exercising, on the part of the
Agent, any right or remedy hereunder shall operate as a waiver thereof, nor
shall any single or partial exercise of any right or remedy prevent any further
or other exercise thereof or the exercise of any other right or remedy.  The rights and remedies herein provided are
cumulative and not exclusive of any rights or remedies provided by law.

 

9                                         ENGLISH LANGUAGE

 

Each communication and document made or delivered by one party to
another pursuant to this Agreement shall be in the English language or
accompanied by a translation thereof into English certified (by an officer of
the person making or delivering the same) as being a true and accurate
translation thereof.

 

10                                  PARTIAL
INVALIDITY

 

If, at any time, any provision of this Agreement is or becomes illegal,
invalid or unenforceable in any respect under the law of any jurisdiction,
neither the legality, validity or enforceability of the remaining provisions
hereof nor the legality, validity or enforceability of such provision under the
law of any other jurisdiction shall in any way be affected or impaired thereby.

 

11                                  GOVERNING LAW

 

This Agreement is governed by, and shall be construed in accordance
with, English law.

 

12                                  JURISDICTION

 

12.1                        English
Courts     Cableuropa
irrevocably agrees for the benefit of the Agent that the courts of England
shall have jurisdiction to hear and determine any Proceedings, and to settle
any Disputes, which may arise out of or in connection with this Agreement and,
for such purposes, irrevocably submits to the jurisdiction of such courts.

 

12.2                        Appropriate
Forum     Cableuropa
irrevocably waives any objection which it might now or hereafter have to the
courts referred to in Clause 12.1 (English Courts) being nominated as the 

 

3

 

forum to hear and determine any Proceedings and to
settle any Disputes and agrees not to claim that any such court is not a
convenient or appropriate forum.

 

12.3                        Service of
Process     Cableuropa
agrees that the process by which any Proceedings are begun may be served on it
by being delivered to such person in England as is appointed by Cableuropa for
the purposes of accepting service of process on their behalf in England and as
is notified to the Agent from time to time. 
If the appointment of such person ceases to be effective in respect of
Cableuropa, Cableuropa shall immediately appoint a further person in England to
accept service of process on its behalf in England and, failing such
appointment within 15 days, the Agent shall be entitled to appoint such a
person by notice to Cableuropa.  Nothing
contained herein shall affect the right to serve process in any other manner
permitted by law.

 

12.4                        Non-exclusive
Submissions     The submission to the jurisdiction of the courts referred to
in Clause 12.1 (English Courts) shall not (and shall not be construed so as
to) limit the right of the Agent to take Proceedings against Cableuropa in any
other court of competent jurisdiction nor shall the taking of Proceedings in
any one or more jurisdictions preclude the taking of Proceedings in any other
jurisdiction (whether concurrently or not) if and to the extent permitted by
applicable law.

 

12.5                        Consent to
Enforcement     Cableuropa hereby consents generally in respect of any
Proceedings to the giving of any relief or the issue of any process in
connection with such Proceedings including the making, enforcement or execution
against any property whatsoever (irrespective of its use or intended use) of
any order or judgment which may be made or given in such Proceedings.

 

12.6                        Waiver of
Immunity     To the
extent that Cableuropa may in any jurisdiction claim for itself or its assets
immunity from suit, execution, attachment (whether in aid of execution, before
judgment or otherwise) or other legal process and to the extent that in any
such jurisdiction there may be attributed to itself or its assets such immunity
(whether or not claimed), Cableuropa hereby irrevocably agrees not to claim and
hereby irrevocably waives such immunity to the full extent permitted by the
laws of such jurisdiction.

 

4

 

SCHEDULE
1

 

SECURITY DOCUMENTS

 

1.                                       Deed
of pledge of shares (póliza de pignoración de acciones) in
Región de Murcia de Cable, S.A. dated August 8, 2001, between the Security
Agent and Cableuropa as intervened by Mr. Fernando Molina Stranz.

 

2.                                       Deed
of pledge of shares (póliza de pignoración de acciones) in
Valencia de Cable, S.A. dated August 8, 2001, between the Security Agent and
Cableuropa as intervened by Mr. Fernando Molina Stranz.

 

3.                                       Deed
of pledge of shares (póliza de pignoración de acciones) in
Mediterránea Sur Sistemas de Cable, S.A. dated August 8, 2001, between the
Security Agent and Cableuropa as intervened by Mr. Fernando Molina Stranz.

 

4.                                       Deed
of pledge of shares (póliza de pignoración de acciones) in
Mediterránea Norte Sistemas de Cable, S.A. dated August 8, 2001, between the
Security Agent and Cableuropa as intervened by Mr. Fernando Molina Stranz.

 

5.                                       Deed
of pledge of shares (póliza de pignoración de acciones) in
ONONet Comunicaciones, S.A. dated August 8, 2001, between the Security Agent
and Cableuropa as intervened by Mr. Fernando Molina Stranz.

 

6.                                       Deed
of pledge of credit rights over bank accounts (póliza de pignoración de derechos de
crédito sobre cuentas bancarias) dated August 8, 2001, between the
Security Agent and Cableuropa as intervened by Mr. Fernando Molina Stranz.

 

7.                                       Deed
of pledge of credit rights over bank accounts (póliza de pignoración de derechos de
crédito sobre cuentas bancarias) dated August 8, 2001, between the
Security Agent and Región de Murcia de Cable, S.A. as intervened by Mr.
Fernando Molina Stranz.

 

8.                                       Deed
of pledge of credit rights over bank accounts (póliza de pignoración de derechos de
crédito sobre cuentas bancarias) dated August 8, 2001, between the
Security Agent and Valencia de Cable, S.A. as intervened by Mr. Fernando Molina
Stranz.

 

9.                                       Deed
of pledge of credit rights over bank accounts (póliza de pignoración de derechos de
crédito sobre cuentas bancarias) dated August 8, 2001, between the
Security Agent and Mediterránea Sur Sistemas de Cable, S.A. as intervened by
Mr. Fernando Molina Stranz.

 

10.                                 Deed
of pledge of credit rights over bank accounts (póliza de pignoración de derechos de
crédito sobre cuentas bancarias) dated August 8, 2001, between the
Security Agent and Mediterránea Norte Sistemas de Cable, S.A. as intervened by
Mr. Fernando Molina Stranz.

 

11.                                 Deed
of pledge of credit rights over bank accounts (póliza de pignoración de derechos de
crédito sobre cuentas bancarias) dated August 8, 2001, between the
Security Agent and ONONet Comunicaciones, S.A. as intervened by Mr. Fernando
Molina Stranz.

 

12.                                 Deed
of pledge of credit rights (póliza de pignoración de derechos de crédito)
dated August 8, 2001, between the Security Agent and Cableuropa as intervened
by Mr. Fernando Molina Stranz.

 

5

 

13.                                 Deed
of pledge of credit rights (póliza de pignoración de derechos de crédito)
dated August 8, 2001, between the Security Agent and Región de Murcia de Cable,
S.A. as intervened by Mr. Fernando Molina Stranz.

 

14.                                 Deed
of pledge of credit rights (póliza de pignoración de derechos de crédito)
dated August 8, 2001, between the Security Agent and Valencia de Cable, S.A. as
intervened by Mr. Fernando Molina Stranz.

 

15.                                 Deed
of pledge of credit rights (póliza de pignoración de derechos de crédito)
dated August 8, 2001, between the Security Agent and Mediterránea Sur Sistemas
de Cable, S.A. as intervened by Mr. Fernando Molina Stranz.

 

16.                                 Deed
of pledge of credit rights (póliza de pignoración de derechos de crédito)
dated August 8, 2001, between the Security Agent and Mediterránea Norte
Sistemas de Cable, S.A. as intervened by Mr. Fernando Molina Stranz.

 

17.                                 Public
Deed of mortgage of trademarks (escritura pública de hipoteca de marcas)
dated August 8, 2001, between Cableuropa and the Security Agent, executed
before the Notary Public of Madrid, Mr. Fernando Molina Stranz.

 

18.                                 Notice
from Cableuropa to the insurance companies (carta a las compañías aseguradoras) dated
August 8, 2001.

 

19.                                 Deed
of pledge of credit rights (póliza de pignoración de derechos de crédito)
dated November 5, 2001, between the Security Agent and Cableuropa as intervened
by Mr. Fernando Molina Stranz.

 

20.                                 Deed
of pledge of shares (póliza de pignoración de acciones) in
Cableuropa dated January 2, 2002, between the Security Agent and Holdco as
intervened by Mr. Francisco Javier Cedrón López-Guerrero.

 

21.                                 Deed
of pledge of credit rights over bank accounts (póliza de pignoración de derechos de
crédito sobre cuentas bancarias) dated January 2, 2002, between the
Security Agent and Holdco as intervened by Mr. Francisco Javier Cedrón
López-Guerrero.

 

22.                                 Deed
of pledge of credit rights (póliza de pignoración de derechos de crédito)
dated February 4, 2002, between the Security Agent and Holdco as intervened by
Mr. Fernando Molina Stranz.

 

23.                                 Deed
of pledge of credit rights (póliza de pignoración de derechos de crédito)
dated April 4, 2002, between the Security Agent and Holdco as intervened by Mr.
Fernando Molina Stranz.

 

6

 

SIGNATORIES

 

 

CABLEUROPA, S.A.U.

(on behalf of itself and as agent and representative of each Obligor)

 

 

By:

 

 

BANC OF AMERICA SECURITIES
LIMITED

(on behalf of itself and as Agent of each Beneficiary)

By:

 

7

 

With my intervention, stating that this Agreement of 8 pages executed in
3 original copies for one sole purpose through the signature by all parties of
the respective signature pages only, has been witnessed by myself by sealing
and signing on each page.  (Con mi
intervención, haciendo constar que el presente contrato consta de 8 páginas, ha
sido celebrado en 3 ejemplares originales a un solo efecto mediante la firma
por todas las partes de las páginas respectivas de firmas exclusivamente, e
intervenido por mí mediante su sellado y firma en cada una de sus páginas.)

 

Signature and seal of Fernando Molina Stranz Notario de Madrid.

 

8Exhibit 4.26

 

Translation-

For information purposes only

 

 

SUBORDINATED LOAN AGREEMENT

 

In Madrid, on 13 February 2003

 

 

BETWEEN

 

OF THE ONE PART, GRUPO CORPORATIVO ONO, S.A., with registered address at calle Basauri 7-9, edificio Belagua,

urbanización La Florida, in Madrid and holding Fiscal Identification Number

A.82688904 (hereinafter, GRUPO CORPORATIVO ONO), represented by Mr. Eugenio

Galdón in his capacity as representative of MULTITEL HOLDINGS, S.L., President

of the Board of Directors and Mr. Richard D. Alden, in his capacity as Managing

Director.

 

OF THE OTHER PART, CABLEUROPA, S.A.U., with registered address at calle Basauri 7-9, edificio Belagua,

urbanización La Florida, in Madrid and holding Fiscal Identification Number

A.48514343 (hereinafter, CABLEUROPA), represented by Mr. Eugenio Galdón in his

capacity as representative of MULTITEL HOLDINGS, S.L., President of the Board

of Directors and Mr. Richard D. Alden, in his capacity as Managing Director.

 

THEY HEREBY DECLARE

 

I.                                      That Ono Finance, Plc has made the following high-yield bond issues

(hereinafter to be jointly referred to as the “High-Yield Bond Issues”):

 

(i)                                      on 6 May 1999, an issue of 125,000 high-yield bonds denominated in

euros and 275,000 high-yield bonds denominated in U.S. dollars, with a face

value of 1,000 euros and 1,000 U.S. dollars each, respectively;

 

(ii)                                   on 30 June 2000, an issue of 200,000 high-yield bonds denominated in

euros, with a face value of 1,000 euros each; and

 

(iii)                                on 9 February 2001, an issue of 150,000 high-yield bonds denominated

in euros and 200,000 high-yield bonds denominated in U.S. dollars, with a face

value of 1,000 euros and 1,000 U.S. dollars each, respectively

 

(hereinafter, the high-yield bonds issued by virtue of

the High-Yield Bond Issues shall be jointly referred to as the “High-Yield

Bonds”).

 

II.                                    That GRUPO CORPORATIVO ONO, by virtue of a sale and purchase

agreement executed today between it and CABLEUROPA (hereinafter, the “Sale and

Purchase Agreement”), has transferred to CABLEUROPA a number of High-Yield

Bonds which it held (hereinafter, said transfer of High-Yield Bonds shall be

referred to as the “Sale and Purchase of High-Yield  Bonds”).

The price to be paid by CABLEUROPA to GRUPO CORPORATIVO ONO for the purchase of

said High-Yield Bonds is Euro 163,992,600 (hereinafter, the “Price”).

 

 

III.                                That, in order to partly finance the Sale and Purchase of High-Yield

Bonds, GRUPO CORPORATIVO ONO has agreed to defer collection of part of the

Price, NINETY-EIGHT MILLION FOUR HUNDRED AND SIXTY-FOUR THOUSAND TWO HUNDRED

AND TEN euros (EUR 98,464,210) (the “Payment Deferral”), as provided in the Sale

and Purchase Agreement, and consequently the parties (who declare that their

powers to act herein remain in force) have decided to regulate the conditions

of said Payment Deferral by converting the same into a loan, for which purpose,

they agree to execute the present agreement (hereinafter, the “Agreement”)

which shall be governed by the following

 

CLAUSES

 

ONE.- OBJECT OF THE

AGREEMENT

 

Pursuant to the terms and conditions set

forth in this Agreement, GRUPO CORPORATIVO ONO grants to CABLEUROPA, which

accepts, a loan (hereinafter, the “Loan”) for the amount of NINETY-EIGHT

MILLION FOUR HUNDRED AND SIXTY-FOUR THOUSAND TWO HUNDRED AND TEN euros (EUR

98.464.210) (hereinafter, the “Loan Amount”).

 

The parties declare that CABLEUROPA is

currently in possession of the Loan Amount as a result of  the conversion of the

Payment Deferral agreed with GRUPO CORPORATIVO ONO and referred to in

Declaration III herein, into the Loan regulated by the present Agreement.

 

TWO.- MATURITY

 

2.1                              The Loan shall mature on 1 March 2011 or on any prior date on which:

 

(a)                                   all obligations arising from the following agreements have been

fulfilled and all amounts owed by virtue of such agreements have been paid:

 

(i)                                      the Senior Facility Agreement (hereinafter, as amended from time to time, the “Facility

Agreement”), dated 8 August 2001, executed by, among others,

CABLEUROPA and a syndicate of credit entities and formalised in an agreement

dated 8 August 2001, executed before Mr Fernando Molina Stranz, Public Notary

in Madrid, including the complete cancellation of the Lender’s

Commitments (as such terms are defined in the Facility Agreement);

 

(ii)                                   the foreign exchange risk hedging

agreement executed on 18 May 2000 between Ononet Comunicaciones, S.A. and BANK

OF AMERICA, N.A. (hereinafter, as amended from time to time, “Hedging Agreement A”);

 

(iii)                                the foreign exchange risk hedging

agreement executed on 18 May 2000 between Ononet Comunicaciones, S.A. and THE

TORONTO-DOMINION BANK (hereinafter, as amended from time to time, “Hedging

Agreement B”); and

 

2

 

(iv)                               the foreign exchange risk hedging

agreement executed on 8 July 2002 between CABLEUROPA and DEUTSCHE BANK AG

LONDON (hereinafter,

as amended from time to time, “ Hedging Agreement C”);

 

(v)                                  the Indentures dated 6 May, 1999, 30

June, 2000 and 9 February, 2001, entered into between, inter alia, CABLEUROPA and

Ono Finance, Plc., stating the terms and conditions of the High-Yield Bond

Issues.

 

(hereinafter, the Facility Agreement, Hedging Agreement A,

Hedging Agreement B, and Hedging Agreement  C shall be jointly referred to as the “Financing

Agreements”).

 

(b)                                  The Board of Directors of CABLEUROPA agrees to call a General

Shareholders’ Meeting, which agenda shall include a proposal to increase share

capital by offsetting credits, provided that the credits to be offset are

derived, in whole or in part, from the present Loan.

 

On such date, subject to Clause 4 below, GRUPO

CORPORATIVO ONO shall claim from CABLEUROPA the return of the principal as well

as any interest accrued.

 

2.2                                In the event that, due to reasons not attributable to CABLEUROPA,

the increase in share capital referred to in section (b) above is agreed for an

amount which would be insufficient to repay the entire Loan, CABLEUROPA

undertakes to act as necessary in order for subsequent increases in share

capital for which approval is requested from the General Shareholders’ Meeting

to be carried out by offsetting credits, until the full amount of the Loan is

repaid.

 

GRUPO CORPORATIVO ONO undertakes to vote at the

General Shareholders’ Meeting in favour of any proposal by the Board of

Directors of CABLEUROPA regarding the increase in share capital of the latter

company by offsetting credits derived from the Loan and to create a pledge over

the shares issued as a result of such share capital increase by means of a

Security Document (as such term is defined under the Facility Agreement).

 

THREE.- INTEREST

 

The

Loan Amount pending amortisation shall accrue interest daily in favour of GRUPO

CORPORATIVO ONO, from the date of the present Agreement until such date as the

Loan is fully and definitively amortised. Said interest shall be calculated on

the basis of a year of three hundred and sixty (360) days and according to the

number of calendar days that have actually passed.

 

The

annual interest rate applicable to the Loan Amount pending amortisation shall

be 7.5%. Annual interests accrued shall be settled and paid on the anniversary

of the execution of the present Agreement.

 

No interest whatsoever shall be paid if:

(i) an Event of Default or a Potential Event of Default has occurred (as

defined in the Facility Agreement) within the framework of the Facility

 

3

 

Agreement, or if it is reasonably probable

that the payment of interest agreed will give rise to an Event of Default or a

Potential Event of Default (as defined in the Facility Agreement) within the

frame of the Facility Agreement; or (ii) if the conditions provided for in

Clause 20.2(e) of the Facility Agreement are not met.

 

Should the provisions expressed above be

applicable, unpaid interest accrued would be capitalised periodically and added

to the principal. In no event, default interest will be accrued.

 

FOUR.- SUBORDINATE NATURE

OF THE LOAN

 

4.1                               The present Loan, according to the seniority of credits, shall be

subordinated to the payment in full of any amounts owed by CABLEUROPA or by

companies in its group under the Financing Agreements and the complete

cancellation of the Lender’s Commitments (as such terms are defined in the

Facility Agreement) under the Facility Agreement.

 

Consequently, until such time as all amounts owed

under each of the Financing Agreements have been fully paid:

 

(a)                                  CABLEUROPA may not amortise nor repay in advance any amount under

the present Loan, unless said amortisation or early repayment is made against

an increase in share capital in CABLEUROPA and the shares issued are pledged

pursuant to a Security Document (as defined in the Facility Agreement);

 

(b)                                 GRUPO CORPORATIVO ONO: (i) shall not demand payment or the repayment

of the principal or any other amount; (ii) shall not sue for the principal or

any other amount; (iii) shall not exercise any enforcement rights which may

assist it (whether under any Encumbrance (as defined in the Facility Agreement)

or otherwise) or initiate proceedings to wind up CABLEUROPA; (iv) shall not

exercise any right of set-off or combination of accounts in respect of amounts

owed under the Loan (including the Loan Amount, any cash interests (provided

that, for the avoidance of doubt, interest may accrue and be capitalised),

fees, costs or expenses thereon), except for set-off against a share capital

increase; and (v) shall not prove in respect of this Loan in any liquidation of

CABLEUROPA.

 

4.2                                 GRUPO

CORPORATIVO ONO undertakes, provided that it is not obliged to do so, to vote

against any proposal in a winding up, dissolution, administration or bankruptcy

of CABLEUROPA or any analogous proceedings which may have the effect of causing

or allowing any the amounts owing under the Loan to be fully or partially paid

before the amounts owed under the Financing Agreements, or which result in a failure

to comply with the provisions set forth herein.

 

FIVE.- GUARANTEES AND RAISING TO

PUBLIC DOCUMENT STATUS

 

5.1                                GRUPO CORPORATIVO ONO and CABLEUROPA agree that the granting of the

Loan does not entail the creation of an Encumbrance (as defined in the Facility

Agreement) or any guarantee whatsoever. Consequently, GRUPO CORPORATIVO ONO

undertakes to discharge or release any guarantee, charge or Encumbrance (as

 

4

 

defined in the Facility Agreement) that may be created

or granted in its favour with regard to the Loan.

 

5.2                                GRUPO CORPORATIVO ONO and CABLEUROPA accept the obligation to not

raise the present Loan to public document status unless required to do so by

any applicable law (for example, a law on foreign exchange and foreign

investment), in which case, the parties shall do so, waiving the seniority

attributed to public documents.

 

SIX.- CONVERSION OF THE

LOAN INTO A PARTICIPATION LOAN

 

GRUPO CORPORATIVO ONO and CABLEUROPA may,

at any time during the live of the Loan, modify its terms in order to convert

the same into a participation loan under the terms established in legislation

applicable at the time.

 

Notwithstanding any such conversion into a

participation loan, the other terms, including the subordinated nature of this

Loan, will remain unchanged.

 

SEVEN.- APPLICABLE LAW

 

The present Agreement shall be governed by

Spanish law.

 

EIGHT.- ARBITRATION AND

JURISDICTION

 

Any dispute that may arise regarding the

validity and/or resolution and/or interpretation and/or execution of the

present Agreement shall be resolved by means of arbitration-in-law to be

carried out in the city of Madrid, by a single arbitrator, and in accordance

with the rules of the International Chamber of Commerce, with both parties being

obliged to comply with the award handed down at said proceedings.

 

For any other matters which for legal

reasons cannot be submitted to arbitration, the parties submit themselves to

the Courts and Tribunals of the city of Madrid, waiving any other Judge or

Tribunal which might otherwise correspond thereto.

 

In witness whereof, the parties sign two

copies of the present Agreement for a single purpose, at the place and on the

date indicated ut supra.

 

Por Grupo Corporativo ONO, S.A.

 

 

 

	

  D. Eugenio

  Galdón

  	

  D. Richard D.

  Alden

  

 

5

 

Por Cableuropa, S.A.U.

 

 

 

	

  D. Eugenio

  Galdón

  	

  D. Richard D.

  Alden

  

 

6

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