Document:

Ex-4.2

 

Exhibit 4.2

LOAN AGREEMENT

between

MOBIFON S.A.

and

NORDIC INVESTMENT BANK

Dated 27 August 2002

 

LOAN AGREEMENT

AGREEMENT, dated 27 August 2002 between MOBIFON
S.A., a joint stock company organised and existing under the
laws of Romania (the “Borrower”), and NORDIC
INVESTMENT BANK (“NIB”).

ARTICLE I —
DEFINITIONS

Section 1.01  Definitions

Wherever used in this Agreement, including the
Schedules and Exhibits, unless the context otherwise requires,
the following terms have the following meanings:

 

			
	
    “ABN Working Capital Agreement”
    		
    means the Working Capital Agreement dated
    February 19, 1999 between the Borrower and ABN AMRO Bank
    Romania S.A. pursuant to which ABN AMRO Bank Romania S.A. has
    agreed to make available to the Borrower a credit facility of up
    to $10,000,000 on the terms and conditions thereof as
    subsequently modified from time to time.
    
	 
	
    “Acknowledgement and Non-Disturbance
    Agreement”
    		
    means the agreement between Avrig 35 S.A., HVB
    Bank Romania S.A., Rhombus Asset Management Inc., F & C
    International B.V., the Borrower and the Senior Lenders with
    respect to, inter alia, the Lease Agreement dated
    October 4, 1999 between Avrig 35 S.A. as lessor and the
    Borrower as lessee.
    
	 
	
    “Affiliate”
    		
    means, with respect to any person, any other
    person directly or indirectly controlling, controlled by, or
    under common control with such person.
    
	 
	
    “Agency Agreement”
    		
    means the agency agreement between NIB, EBRD,
    EDC, the Agent and the Borrower setting out, inter alia, the
    obligations of the Agent in respect of the NIB Loan, the EBRD
    Loan and the EDC Loan.
    
	 
	
    “Agent”
    		
    means ABN AMRO Bank N.V. or such other financial
    institution as EBRD may notify to the Borrower from time to time
    as being the agent for EDC, EBRD and NIB under the Agency
    Agreement.
    

 

 

			
	
    “Assignment of Receivables”
    		
    means the instrument pursuant to which the
    Borrower assigns all of its right, title, interest and benefit
    in and claims relating to accounts receivable to the Secured
    Parties for the purpose of securing, inter alia, the obligations
    of the Borrower hereunder, in form and substance satisfactory to
    NIB.
    
	 
	
    “Assignment of Subordinated Debt”
    		
    means the instrument pursuant to which the right,
    title, interest and benefit of the holder of any Permitted High
    Yield Back to Back Debt in and to such Permitted High Yield Back
    to Back Debt is pledged and/or assigned to the Senior Lenders,
    for the purpose of securing, inter alia, the obligations of the
    Borrower hereunder, in accordance with Section 3.09(f) and
    Section 5.07(h), in form and substance satisfactory to NIB.
    
	 
	
    “Auditors”
    		
    means such firm of independent accountants as the
    Borrower may from time to time appoint as its auditors in
    accordance with Section 5.05(c).
    
	 
	
    “Authorised Signatory”
    		
    means, in relation to the Borrower, any person
    who is duly authorised (in such manner as may be reasonably
    acceptable to NIB) and in respect of whom NIB has received a
    certificate signed by the Chief Executive Officer or another
    Authorised Signatory of the Borrower setting out the name and
    signature of such person and confirming such person’s
    authority to act.
    
	 
	
    “Available Cash Balance”
    		
    means, at any time, the difference between
    (a) the USD Equivalent Amount of the aggregate balance at
    such time of all Cash and Cash Equivalents and (b) the
    Minimum Cash Balance.
    
	 
	
    “Base Case Financial Forecast”
    		
    means the financial projections of the Borrower
    approved by the Borrower by a certificate of an Authorised
    Signatory addressed to the Senior Lenders dated the date hereof.
    
	 
	
    “Borrower Accounts”
    		
    means all bank accounts of the Borrower, other
    than the Employee Personal Guarantee Accounts.
    
	 
	
    “Borrower Power of Attorney”
    		
    means the power of attorney granted by the
    Borrower to the Senior Lenders in respect of the Financing
    Agreements in form and substance satisfactory to the Senior
    Lenders.
    

 

 

			
	
    “Business Day”
    		
    means a day (other than a Saturday or Sunday) on
    which commercial banks and foreign exchange markets are open for
    the transaction of general business in the interbank market for
    Dollars in London, England, on which commercial banks and
    foreign exchange markets settle payments in Dollars in New York
    and on which the Trans-European Automated Real-Time Gross
    Settlement Express Transfer (TARGET) System is open.
    
	 
	
    “Capital Expenditure”
    		
    means any expenditure which should be treated as
    a capital expenditure in the Financial Statements of the
    Borrower in accordance with Generally Accepted Accounting
    Principles.
    
	 
	
    “Cash and Cash Equivalents”
    		
    means, at any time, the sum of:
    
	 
	
		
    (a)                                            cash
    in the Borrower Accounts, including demand and term deposits
    with maturity of not more than 90 days;
    
	 
	
		
    (b)                                            cash
    in safe; and
    
	 
	
		
    (c)                                            Permitted
    Treasury Instruments.
    
	 
	
    “Charter”
    		
    means, in respect of any company, corporation,
    partnership, enterprise, governmental agency or other entity,
    its founding act, articles of incorporation and bylaws,
    memorandum and articles of association, contract of association,
    constitutive act, statutes or similar instrument, as applicable,
    and in respect of the Borrower includes, without limitation, the
    Contract of Association and the Statutes.
    
	 
	
    “Citibank Working Capital Agreement”
    		
    means the Working Capital Agreement between
    Citibank Romania S.A. and the Borrower dated March 25, 1999
    pursuant to which Citibank Romania S.A. has agreed to make
    available to the Borrower a credit facility of up to $10,000,000
    on the terms and conditions thereof, as subsequently modified
    from time to time.
    
	 
	
    “ClearWave”
    		
    means ClearWave N.V., a corporation organized and
    existing under the laws of the Netherlands.
    
	 
	
    “ClearWave Holdings”
    		
    means ClearWave Holdings BV, a corporation
    organized and existing under the laws of the Netherlands.
    

 

 

			
	
    “ClearWave’s Majority Shareholder”
    		
    means
    
	 
	
		
    (i)     Telesystem
    International Wireless Inc., a corporation organised and
    existing under the laws of Canada, and
    
	 
	
		
    (ii)     any
    Recognised Telecommunications Operator which acquires pursuant
    to Section 4.02(b) of the Share Retention and Subordination
    Deed (either directly or indirectly) an Economic Interest or a
    Controlling Interest of more than 50% in ClearWave.
    
	 
	
    “Compliance Certificate”
    		
    means a certificate substantially in the form of
    Schedule B.
    
	 
	
    “Conditional Discharge”
    		
    has the meaning set out in Section 4.01(p)
    
	 
	
    “Conditional Discharge Escrow Agent”
    		
    means counsel to the Senior Lenders, acting
    pursuant to the Conditional Discharge Escrow Instructions as
    agent on behalf of the Senior Lenders, the EKN Lenders and the
    other parties having the benefit of the Existing Security for
    the purpose of holding in escrow the Conditional Discharge
    delivered in accordance with Section 4.01(p) until receipt
    of the Existing Loans Repayment Confirmations.
    
	 
	
    “Conditional Discharge Escrow
    Instructions”
    		
    means the letter of instructions from, inter
    alia, the Senior Lenders and the EKN Lenders to the
    Conditional Discharge Escrow Agent instructing the Conditional
    Discharge Escrow Agent with respect to the holding and release
    of the Conditional Discharge, in form and substance satisfactory
    to NIB.
    
	 
	
    “Contract of Association”
    		
    means the contract of association of the Borrower
    dated November 22, 1996, as amended by additional acts
    approved prior to the date hereof and registered in the Trade
    Register in Bucharest, Romania, among the Shareholders regarding
    inter alia the establishment and shareholdings of the Borrower.
    
	 
	
    “Controlled Affiliate”
    		
    means, with respect to any person, any Affiliate
    of such person which meets each of the following conditions:
    (i) such person owns (directly or indirectly through a
    Subsidiary in which such person owns an Economic Interest and a
    Controlling Interest of not less than 75%) an
    

 

 

			
	
		
    Economic Interest in such Affiliate of not less
    than 75%, (ii) such person owns (directly or indirectly
    through a Subsidiary in which such person owns an Economic
    Interest and a Controlling Interest of not less than 75%) a
    Controlling Interest in such Affiliate of not less than 75%,
    (iii) such person at all times maintains and exercises
    Management Control over such Affiliate, and (iv) such
    Affiliate owns (directly or indirectly) an Economic Interest or
    a Controlling Interest in the Borrower.
    
	 
	
    “Controlling Interest”
    		
    means a percentage legal and beneficial ownership
    interest held by a person in the aggregate of all voting rights
    exercisable in respect of the share capital of another person.
    
	 
	
    “Controlling Shareholders”
    		
    means
    
	 
	
		
    (1)     ClearWave,
    
	 
	
		
    (2)     Vodafone,
    
	 
	
		
    (3)   any Joint Affiliate, and
    
	 
	
		
    (4)     any
    Recognised Telecommunications Operator which acquires pursuant
    to Section 4.01(c) of the Share Retention and Subordination
    Deed (either directly or indirectly) (i) an Economic
    Interest or a Controlling Interest of more than 50% in the
    Borrower or, (ii) in the case of a transfer, sale or
    assignment by Vodafone, Vodafone’s entire Economic Interest
    and Controlling Interest in the Borrower.
    
	 
	
    “Cooperation Agreement”
    		
    means the agreement dated November 29, 1996
    between TIWC and Vodafone Europe (formerly Airtouch Europe B.V.)
    entitled “Romanian GSM Co-operation Agreement” in
    respect of shareholdings in the Borrower.
    
	 
	
    “Curative Equity”
    		
    has the meaning set out in Section 5.10(a).
    
	 
	
    “Current Assets”
    		
    means the aggregate (as of the date of
    calculation) of the Borrower’s cash, marketable securities,
    trade and other receivables and inventories realisable within
    one year from such date of calculation and any other items which
    are “current assets” under Generally Accepted
    

 

Accounting Principles.

 

			
	
    “Current Liabilities”
    		
    means the aggregate (as of the date of
    calculation) of all liabilities of the Borrower falling due on
    demand or within one year, including the portion of Long-term
    Debt falling due within one year.
    
	 
	
    “Debt”
    		
    means, with respect to any person, all
    obligations or liabilities of such person, whether incurred as
    principal or surety and whether present, future, actual or
    contingent, for the payment or repayment of money including
    without limitation payables and accrued expenses and including,
    without limitation:
    
	 
	
		
    (a)     any
    amounts payable by such person under capital leases or similar
    arrangements over their respective periods;
    
	 
	
		
    (b)     any
    credit to such person from a supplier of goods or under any
    installment purchase or other similar arrangement; and
    
	 
	
		
    (c)     any
    liabilities and obligations of third parties to the extent that
    they are guaranteed by such person or such person has otherwise
    assumed or become liable for the payment of such liabilities or
    obligations or to the extent that they are secured by any Lien
    upon property owned by such person whether or not such person
    has assumed or become liable for the payment of such liabilities
    or obligations.
    
	 
	
    “Declared Amount”
    		
    has the meaning ascribed thereto in
    Section 7.02.
    
	 
	
    “Default Interest Period”
    		
    means, with respect to any amount overdue under
    this Agreement, a period commencing on the day on which such
    payment becomes due or, as the case may be, on the last day of
    the previous Default Interest Period with respect to such
    overdue amount, and ending on a Business Day selected by NIB,
    acting reasonably.
    
	 
	
    “Deferred Distribution Amount”
    		
    means, in respect of each Financial Year, the
    positive amount, if any, by which
    

 

 

			
	
		
    (i)     the
    aggregate of all Distributions which the Borrower is permitted
    to make in respect of such Financial Year in accordance with
    Sections 6.01(a)(3)(A) and 6.01(a)(3)(B),
    
	 
	
		
             exceeds
    
	 
	
		
    (ii)     the
    amount of Distributions which the Borrower is permitted to make
    in accordance with Romanian law in such Financial Year as
    notified by the Borrower to NIB pursuant to Section 5.13(l).
    
	 
	
    “Disbursement”
    		
    means the disbursement of any portion of the NIB
    Loan from time to time pursuant to Section 3.03 or, as the
    context may require, the principal amount thereof from time to
    time outstanding in the Loan Currency.
    
	 
	
    “Distribution”
    		
    has the meaning set out in Section 6.01.
    
	 
	
    “Distribution Test Period”
    		
    has the meaning set out in Section 6.01(a)(3)(A).
    
	 
	
    “Dollars’ and “$”’
    		
    means the lawful currency of the United States of
    America.
    
	 
	
    “EBITDA”
    		
    means, with respect to any period of calculation,
    earnings before interest, tax, depreciation and amortisation,
    calculated as (for such period of calculation) the sum of:
    (1) the net income (or deficit) of the Borrower (less
    extraordinary gains plus extraordinary losses) for such period;
    plus (2) translation losses less translation gains for such
    period; plus (3) income tax and provisions for income tax
    for such period; plus (4) Net Interest Expense for such
    period; plus (5) all amounts in respect of depreciation and
    amortisation for such period, all calculated in accordance with
    Generally Accepted Accounting Principles.
    
	 
	
    “EBRD”
    		
    means the European Bank for Reconstruction and
    Development.
    
	 
	
    “EBRD A Loan”
    		
    means the “A Loan” as defined in the
    EBRD Loan Agreement.
    
	 
	
    “EBRD B Loan”
    		
    means the “B Loan” as defined in the
    EBRD Loan Agreement.
    

 

 

			
	
    “EBRD Loan”
    		
    means the loan to be provided by EBRD to the
    Borrower pursuant to the EBRD Loan Agreement.
    
	 
	
    “EBRD Loan Agreement”
    		
    means the loan agreement date on or about the
    date hereof between EBRD and the Borrower.
    
	 
	
    “Economic Interest”
    		
    means a percentage legal and beneficial ownership
    interest held by a person in the aggregate of all classes of the
    issued and outstanding share capital of another person.
    
	 
	
    “EDC”
    		
    means Export Development Canada.
    
	 
	
    “EDC Loan”
    		
    means the loan to be provided by EDC to the
    Borrower pursuant to the EDC Loan Agreement.
    
	 
	
    “EDC Loan Agreement”
    		
    means the loan agreement dated on or about the
    date hereof between EDC and the Borrower.
    
	 
	
    “EKN Lenders”
    		
    means, collectively, all financial institutions
    which are parties, as lenders, to the Existing EKN Loan
    Agreement on the date hereof.
    
	 
	
    “Electronic Archive”
    		
    means the Romanian electronic registry of
    security interests in personal property established and
    organised pursuant to the Romanian Security Law.
    
	 
	
    “Employee Personal Guarantee Accounts”
    		
    means the bank accounts of the Borrower which
    from time to time are required under Romanian law to be opened
    in connection with the granting of guarantees by employees of
    the Borrower which are involved in controlling inventory, which
    accounts are held with banks in Romania which are duly
    authorized under Romanian law to hold such accounts.
    
	 
	
    “Euro”
    		
    means the lawful currency of the member states of
    the European Union that adopt the single currency in accordance
    with the Treaty Establishing the European Community, as amended
    by the Treaty on European Union.
    
	 
	
    “Event of Default”
    		
    means any one of the events or occurrences
    specified in Section 7.01.
    
	 
	
    “Excess Cash Flow”
    		
    means, with respect to any period of calculation,
    the greater of
    

 

 

			
	
		
    (i)     zero;
    and
    
	 
	
		
    (ii)     the
    Borrower’s EBITDA for such period:
    
	 
	
		
             (a)     less
    the aggregate, calculated as at the end of such period of
    calculation, of all Capital Expenditures and UMTS License Costs
    paid in such period of calculation (other than any Capital
    Expenditures and UMTS License Costs funded from proceeds of the
    Tranche II Loan) during such period of calculation;
    
	 
	
		

         (b)     less
    the increase (or plus the decrease) in Working Capital of the
    Borrower during such period of calculation;
    
	 
	
		

         (c)     less
    all income taxes paid by the Borrower during such period of
    calculation; and
    
	 
	
		

         (d)     less
    the Borrower’s Total Financial Debt Service (other than in
    respect of the Existing Loans) plus the interest received by the
    Borrower on its Current Assets, in each case during such period
    of calculation.
    
	 
	
    “Excess Cash Mandatory Repayment Date”
    		
    has the meaning set out in Section 3.09(d).
    
	 
	
    “Existing EBRD Loan Agreement”
    		
    means the amended and restated loan agreement
    dated January 20, 1999 between the Borrower and EBRD, as
    amended.
    
	 
	
    “Existing EDC Loan Agreement”
    		
    means the amended and restated loan agreement
    dated January 20, 1999 between the Borrower and EDC, as
    amended.
    
	 
	
    “Existing EKN Loan Agreement”
    		
    means the credit facility agreement dated
    January 20, 1999, as amended, between the EKN Lenders, ABN
    AMRO Bank N.V., as arranger, facility agent and security agent
    for the EKN Lenders and the Borrower pursuant to which the EKN
    Lenders have provided to the Borrower a credit facility in an
    aggregate principal amount of $65,000,000.
    

 

 

			
	
    “Existing Loan Agreements”
    		
    means, collectively, the Existing NIB Loan
    Agreement, the Existing EBRD Loan Agreement, the Existing EDC
    Loan Agreement, the Existing EKN Loan Agreement and the Existing
    Subordinated Loan Agreement.
    
	 
	
    “Existing Loans”
    		
    means the loans made to the Borrower under the
    Existing Loan Agreements.
    
	 
	
    “Existing Loans Indebtedness”
    		
    means the aggregate principal amount of the
    Existing Loans from time to time outstanding and all interest,
    expenses, fees and other amounts owing to the Senior Lenders and
    the EKN Lenders under the Existing Loan Agreements and the
    Financing Agreements (as defined in the Existing NIB Loan
    Agreement).
    
	 
	
    “Existing Loans Repayment
    		
    means the confirmations provided by UBS AG
    Confirmations” (London Branch) (as agent on behalf of the
    Senior Lenders) and ABN AMRO Bank N.V. (as agent on behalf of,
    inter alia, the EKN Lenders) to the Borrower and the Conditional
    Discharge Escrow Agent pursuant to which such agents confirm
    receipt of payment representing full repayment of the Existing
    Loans Indebtedness, which confirmations shall be in the form of
    Annexes A and B to the Conditional Discharge Escrow Instructions.
    
	 
	
    “Existing Loans Repayment Date”
    		
    means the date on which the “Payment
    Time” (as defined in the Conditional Discharge Escrow
    Instructions) occurs.
    
	 
	
    “Existing NIB Loan Agreement”
    		
    means the amended and restated loan agreement
    dated January 20, 1999, between the Borrower and NIB, as
    amended.
    
	 
	
    “Existing Security”
    		
    means the security created pursuant to the
    Security Documents (as defined in the Existing NIB Loan
    Agreement) to secure, inter alia, the Borrower’s
    obligations to the Senior Lenders under the Existing Loan
    Agreements and the other Financing Agreements (as defined in the
    Existing NIB Loan Agreement).
    
	 
	
    “Existing Security Discharge Date”
    		
    means the date on which the Existing Security has
    been fully discharged to the satisfaction of the Senior Lenders.
    
	 
	
    “Existing Subordinated Loan Agreement”
    		
    means the amended and restated subordinated loan
    agreement between the Borrower and EBRD
    

 

 

			
	
		
    dated January 28, 1999 pursuant to which
    EBRD made available to the Borrower, subject to the terms and
    conditions therein, $10 million in subordinated debt.
    
	 
	
    “Financial Debt”
    		
    means any Debt for, or in respect of:
    
	 
	
		
    (a)     moneys
    borrowed, including without limitation, in the case of the
    Borrower, any Permitted High Yield Back to Back Debt but
    excluding Permitted Quasi Equity;
    
	 
	
		
    (b)     any
    amount raised by acceptance under any acceptance credit facility;
    
	 
	
		
    (c)     any
    amount raised pursuant to any note purchase facility or the
    issue of bonds, notes, debentures, loan stock or any similar
    instrument;
    
	 
	
		
    (d)     any
    amount raised pursuant to any issue of shares which are
    expressed to be redeemable at the option of the holder;
    
	 
	
		
    (e)     the
    amount of any liability in respect of any lease or hire-purchase
    contract which would, in accordance with generally accepted
    accounting principles in the relevant jurisdiction be treated as
    a finance or capital lease or which otherwise is in substance a
    financing lease;
    
	 
	
		
    (f)     the
    amount of any liability in respect of any advance or deferred
    purchase agreement if one of the primary reasons for entering
    into such agreement is to raise finance;
    
	 
	
		
    (g)     any
    receivables sold or discounted (other than on a non-recourse
    basis);
    
	 
	
		
    (h)     any
    agreement or option to reacquire an asset if one of the primary
    reasons for entering into such agreement or option is to raise
    finance;
    
	 
	
		
    (i)     any
    Debt for or in respect of any credit facility or financial
    accommodation;
    

 

 

			
	
		
    (j)     any
    guarantee, indemnity, bond, standby letter of credit or any
    other instrument issued in connection with the performance of
    any contract or other obligation;
    
	 
	
		
    (k)     any
    amount raised under any other transaction (including any forward
    sale or purchase agreement) which, in accordance with generally
    accepted accounting principles in the relevant jurisdiction, has
    the commercial effect of a borrowing; and
    
	 
	
		
    (l)     the
    amount of any liability in respect of any guarantee or indemnity
    for any of the items referred to in paragraphs
    (a) - (k) above.
    
	 
	
    “Financial Statements”
    		
    means the financial statements (including a
    balance sheet, income statement, cash flow statement and
    statement of changes in equity, and notes thereon) of the
    Borrower prepared in accordance with Generally Accepted
    Accounting Principles if prepared in Dollars and in accordance
    with RAS if prepared in Lei.
    
	 
	
    “Financial Year”
    		
    means the period commencing each year on
    January 1, and ending on the following December 31, or
    such other period as the Borrower may, with NIB’s consent,
    from time to time designate as the accounting year of the
    Borrower.
    
	 
	
    “Financing Agreements”
    		
    means, collectively:
    
	 
	
		
    (a)     this
    Agreement;
    
	 
	
		
    (b)     the
    EBRD Loan Agreement;
    
	 
	
		
    (c)     the
    EDC Loan Agreement;
    
	 
	
		
    (d)     the
    Agency Agreement;
    
	 
	
		
    (e)     the
    Security Documents;
    
	 
	
		
    (f)     the
    Security Sharing and Intercreditor Agreement;
    
	 
	
		
    (g)     the
    Share Retention and Subordination Deed;
    
	 
	
		
    (h)     the
    Borrower Power of Attorney;
    

 

 

			
	
		
    (i)     each
    Shareholder Power of Attorney;
    
	 
	
		
    (j)     the
    Acknowledgement and Non Disturbance Agreement;
    
	 
	
		
    (k)     the
    Disbursement applications referred to in Section 3.03; and
    
	 
	
		
    (l)     any
    other agreements entered into between the Borrower or any other
    party, on the one hand, and any of the Senior Lenders or the
    Agent, on the other hand, and notices, certificates and
    applications issued by the Borrower or any other party to any of
    the Senior Lenders, in connection with this Agreement or any of
    the other Financing Agreements or the transactions contemplated
    by this Agreement or any of the other Financing Agreements.
    
	 
	
    “Free Cash Flow”
    		
    means, for any period of calculation, EBITDA
    minus income tax paid, minus increases (or plus decreases) in
    Working Capital during such period minus all Capital
    Expenditures and UMTS License Costs for such period.
    
	 
	
    “Generally Accepted Accounting
    		
    means accounting principles as generally
    Principles” accepted in the United States of America with
    respect to the preparation of financial statements, as
    consistently applied.
    
	 
	
    “GSM”
    		
    means the global system for wireless mobile
    communications as defined by the International
    Telecommunications Union.
    
	 
	
    “GSM License”
    		
    means the license for provision in Romania of GSM
    telecommunications services as granted on November 29, 1996
    to the Borrower by the Ministry as amended and restated on
    December 16, 1998, which license terminates no earlier than
    November 29, 2011, as such license may be further amended,
    supplemented, restated, novated or assigned from time to time.
    
	 
	
    “Hedge Provider”
    		
    means any financial institution which is a
    counterparty under any Hedging Agreement with the Borrower.
    

 

 

			
	
    “Hedging Agreements”
    		
    means any agreements entered into by the Borrower
    for the purpose of interest rate or currency hedging, which are
    permitted under Section 6.04, which comply with the Hedging
    Plan and which are based on ISDA documentation.
    
	 
	
    “Hedging Plan”
    		
    means the plan of the Borrower with respect to
    interest rate and currency hedging, which plan is agreed to by
    the Senior Lenders.
    
	 
	
    “High Yield Related Prepayment
    Proportion”
    		
    means, at any time, with respect to any Permitted
    High Yield Back to Back Debt, the proportion, expressed as a
    percentage, of (a) the aggregate amount of principal of any
    Senior Loan prepaid or required to be prepaid pursuant to
    Section 3.09(f) of this Agreement, Section 3.10(f) of
    the EBRD Loan Agreement or Section 3.09(f) of the EDC Loan
    Agreement in connection with the issuance of such Permitted High
    Yield Back to Back Debt, divided by (b) the aggregate
    principal amount of all Senior Loans outstanding immediately
    prior to such prepayment.
    
	 
	
    “Immovables Hypothec”
    		
    means an instrument, in form and substance
    acceptable to NIB, pursuant to which the Borrower grants to the
    Secured Parties a first ranking hypothec over immovable tangible
    assets of the Borrower as set forth in Section 5.07(c),
    together with the title deeds for such assets.
    
	 
	
    “Insurance Assignment”
    		
    means the instrument between the Borrower and the
    Secured Parties pursuant to which the Borrower’s rights,
    interests, and benefits in the insurance relating to the
    Borrower’s assets and business are assigned to the Secured
    Parties, for the purpose of securing, inter alia, the
    obligations of the Borrower hereunder, which instrument shall be
    in form and substance satisfactory to NIB.
    
	 
	
    “Interest Determination Date”
    		
    means, for any Interest Period, the date two
    Business Days prior to the first day of such Interest Period.
    
	 
	
    “Interest Payment Date”
    		
    means January 14, April 14,
    July 14 and October 14 in any year; provided, however,
    that, if any Interest Payment Date would otherwise fall on a day
    which is not a Business Day, such Interest Payment Date shall be
    changed to the
    

 

			
	
		
    next succeeding Business Day.
    
	 
	
    “Interest Period”
    		
    means, (i) for any Disbursement, the period
    commencing on the date of such Disbursement and ending on the
    next Interest Payment Date and each period of three months
    thereafter commencing on an Interest Payment Date and ending on
    the next Interest Payment Date, provided that, if such
    Disbursement takes place less than 15 Business Days prior to the
    next Interest Payment Date, the first Interest Period for such
    Disbursement shall commence on the date of such Disbursement and
    end on the Interest Payment Date following the next Interest
    Payment Date.
    
	 
	
    “Joint Affiliate”
    		
    means any person that owns (directly or
    indirectly) any Economic Interest or Controlling Interest in the
    Borrower and that meets each of the following conditions:
    
	 
	
		
    (a)     the
    Controlling Shareholders own (directly or indirectly through
    their Controlled Affiliates) an Economic Interest of not less
    than 75% in such person;
    
	 
	
		
    (b)     the
    Controlling Shareholders own (directly or indirectly through
    their Controlled Affiliates) a Controlling Interest of not less
    than 75% in such person; and
    
	 
	
		
    (c)     the
    Controlling Shareholders (directly or indirectly through their
    Controlled Affiliates) at all times maintain and exercise
    Management Control over such person.
    
	 
	
    “Law”
    		
    means any law, code, statute, treaty, ordinance,
    decree, order, rule, regulation, norms or other such
    governmental, legislative, or judicial determination.
    
	 
	
    “Lei”
    		
    means the lawful currency of Romania.
    
	 
	
    “LIBOR”
    		
    means, for each Interest Period, the offered rate
    per annum for deposits in Dollars which appears on Telerate Page
    3750 as of 11:00 a.m., London time, on the relevant
    Interest Determination Date for the period which is closest to
    the duration of
    

 

			
	
		
    such Interest Period (or, if two periods are
    equally close to the duration of such Interest Period, the
    average of the two relevant rates); provided that:
    
	 
	
		
    (a)     if,
    for any reason, LIBOR cannot be determined at such time by
    reference to Telerate Page 3750, LIBOR for such Interest Period
    shall be the rate per annum which NIB determines to be the
    arithmetic mean (rounded upward, if necessary, to the nearest
    1/16%) of the offered rates per annum for deposits in Dollars in
    an amount comparable to the portion of the NIB Loan made in
    Dollars scheduled to be outstanding during such Interest Period
    for a period equal to such Interest Period which are advised to
    NIB by the London offices of ABN AMRO Bank N.V., Deutsche Bank
    and Rabobank; and
    
	 
	
		
    (b)     if
    NIB determines that deposits in Dollars are not being offered in
    the London interbank market in such amounts or for such period,
    LIBOR for such Interest Period shall be the cost to NIB
    (expressed as a rate per annum) of funding the portion of the
    NIB Loan made in Dollars scheduled to be outstanding during such
    Interest Period from whatever sources it selects.
    
	 
	
    “Licenses”
    		
    means the GSM License and, at all times from and
    after the acquisition by the Borrower of the UMTS License, the
    UMTS License.
    
	 
	
    “Lien”
    		
    means any mortgage, pledge, charge, privilege,
    priority, hypothecation, encumbrance, assignment, lien,
    attachment, set-off or other security interest of any kind or
    any other agreement or arrangement having the effect of
    conferring security upon or with respect to, or any segregation
    of or other preferential arrangement with respect to, any
    present or future assets, revenues or rights, including, without
    limitation, any designation of loss payees or beneficiaries or
    any similar arrangement under any insurance policy.
    

 

 

			
	
    “Loan Currency”
    		
    means the currency in which the NIB Loan is made,
    being Dollars.
    
	 
	
    “Long-term Debt”
    		
    means, as of any date and with respect to any
    person, any Debt of such person all or part of which, or the
    final payment of which, is due more than one year after such
    date.
    
	 
	
    “Major Leases”
    		
    means the lease agreements listed in
    Schedule A hereto and any other lease agreements entered
    into by the Borrower pursuant to which the Borrower obtains and
    occupies land or premises other than any other Site Agreement.
    
	 
	
    “Management Control”
    		
    means the right or capacity, whether exercised or
    not, of a person to directly or indirectly exercise control or
    direction over the management, board of directors or assembly of
    shareholders (or similar such governing bodies) of another
    person by virtue of the person holding a Controlling Interest in
    the other person of more than 50% provided such Controlling
    Interest held by the person is sufficient, if exercised, to
    allow such direct or indirect control or direction of the other
    person.
    
	 
	
    “Margin”
    		
    means three and one-half percent (3.5%) per
    annum, as adjusted in accordance with Section 3.06(d).
    
	 
	
    “Margin Determination Date”
    		
    has the meaning set out in Section 3.06(d).
    
	 
	
    “Material Agreements”
    		
    means the agreements listed in Schedule A
    hereto and any other agreement entered into by the Borrower
    after the date hereof which satisfies the criteria specified in
    Section 2.02(g).
    
	 
	
    “Minimum Cash Balance”
    		
    means, at any time, the USD Equivalent Amount of
    the greater of (a) Total Financial Debt Service of the
    Borrower for the period commencing at such time and ending
    183 days thereafter; and (b) $10,000,000.
    
	 
	
    “Ministry”
    		
    means the Ministry of Communications and
    Information Technology of Romania and any successor thereto, and
    any other Romanian governmental or administrative authority that
    has the powers to regulate the telecommunications sector in
    Romania.
    

 

 

			
	
    “Net Interest Expense”
    		
    means (for the period of calculation) the
    interest charges accrued during such period on the Financial
    Debt of the Borrower (including imputed interest on any capital
    lease obligations), less the interest income accrued by the
    Borrower on its Current Assets.
    
	 
	
    “Network”
    		
    means the Borrower’s GSM network and (at all
    times from and after the date the Borrower acquires the UMTS
    License) the Borrower’s UMTS network.
    
	 
	
    “NIB”
    		
    means Nordic Investment Bank.
    
	 
	
    “NIB Loan”
    		
    means the aggregate of the Tranche I NIB Loan and
    the Tranche II NIB Loan.
    
	 
	
    “Offshore Accounts Charge”
    		
    means the instrument pursuant to which the
    Borrower grants to the Secured Parties and the Working Capital
    Lenders a charge over certain roaming revenues in offshore
    accounts, for the purpose of securing, inter alia, the
    obligations of the Borrower hereunder, which instrument shall be
    in form and substance satisfactory to NIB.
    
	 
	
    “Operating Shareholders”
    		
    means, collectively, (i) the Controlling
    Shareholders, (ii) any Controlled Affiliates of the
    Controlling Shareholders that own an Economic Interest or a
    Controlling Interest in the Borrower from time to time (directly
    or indirectly through Controlled Affiliates of such parties or
    through a Joint Affiliate) and (iii) ClearWave’s
    Majority Shareholder and any Controlled Affiliates of
    ClearWave’s Majority Shareholder that own an Economic
    Interest or a Controlling Interest in ClearWave from time to
    time.
    
	 
	
    “Orange Romania”
    		
    means Orange Romania S.A., a company organised
    and existing under the laws of Romania.
    
	 
	
    “Orange Romania Interconnection
    Agreement”
    		
    means the agreement between Orange Romania and
    the Borrower, dated 12 May 1999, as amended by additional acts
    dated 28 May 1999 and 9 October 2000.
    
	 
	
    “Permitted High Yield Back to Back Debt”
    		
    has the meaning set out in the Share Retention
    and Subordination Deed.
    
	 
	
    “Permitted Liens”
    		
    means the Liens referred to in Section 6.03(1)
    through (5).
    

 

 

			
	
    “Permitted Quasi Equity”
    		
    has the meaning set out in the Share Retention
    and Subordination Deed.
    
	 
	
    “Permitted Treasury Instruments”
    		
    means investments of the Borrower in:
    
	 
	
		
    (a)     investment
    grade debt securities; and
    
	 
	
		
    (b)     securities
    issued by central Romanian governmental or state issuers under
    the supervision of the National Bank of Romania (other than any
    local, municipal or district bodies or authorities);
    
	 
	
		
    in each case with residual maturity of 90 days or
    less, provided that such securities are held by the Borrower
    with reputable financial institutions solely for the purpose of
    giving temporary employment to the Borrower’s cash
    resources.
    
	 
	
    “Potential Event of Default”
    		
    means any event which, with the giving of notice,
    the passage of time or the making of any determination, or any
    combination thereof, would become an Event of Default.
    
	 
	
    “Project”
    		
    means the continued design, construction,
    equipping, operation (and placing into operation of), and the
    provision of working capital for, the Borrower’s Network
    located in Romania as contemplated under the terms of the
    Licenses and includes the acquisition of the UMTS License.
    
	 
	
    “Project Agreements”
    		
    means:
    
	 
	
		
    (a)     the
    Borrower’s Charter;
    
	 
	
		
    (b)     the
    Cooperation Agreement;
    
	 
	
		
    (c)     the
    Licenses;
    
	 
	
		
    (d)     the
    Orange Romania Interconnection Agreement;
    
	 
	
		
    (e)     the
    Romtelecom Interconnection Agreement;
    
	 
	
		
    (f)     each
    Working Capital Facility Agreement;
    
	 
	
		
    (g)     each
    Hedging Agreement;
    

 

 

			
	
		
    (h)     each
    agreement or instrument pursuant to which the Borrower incurs
    Subordinated Debt; and
    
	 
	
		
    (i)     any
    other agreement entered into by the Borrower after the date
    hereof identified by NIB (following consultation with the
    Borrower) as a Project Agreement from time to time.
    
	 
	
    “Public Offering”
    		
    means, in respect of any person, any offering of
    newly issued equity securities of such person where such equity
    securities are (i) listed, or to be listed following such
    offering, on any internationally recognised stock exchange,
    including (in case of the Borrower) the Bucharest stock
    exchange, or (ii) sold pursuant to a prospectus under
    Canadian securities laws or pursuant to a registration statement
    under the United States Securities Act of 1933.
    
	 
	
    “Public Secondary Sale”
    		
    means, in respect of any person, any offering and
    sale by holders of equity securities in such person of any such
    equity securities where such equity securities are
    (i) listed, or to be listed following such offering, on any
    internationally recognised stock exchange, including (in case of
    equity securities of the Borrower) the Bucharest stock exchange,
    or (ii) sold pursuant to a prospectus under Canadian
    securities laws or pursuant to a registration statement under
    the United States Securities Act of 1933.
    
	 
	
    “Quarter Dates”
    		
    means 31 March, 30 June, 30 September and 31
    December in any year.
    
	 
	
    “Quarterly Period”
    		
    means each successive period of three calendar
    months commencing on the day after a Quarter Date and ending on
    the next following Quarter Date.
    
	 
	
    “RAS”
    		
    means accounting standards generally accepted in
    Romania including the International Accounting Standards
    promulgated by the International Accounting Standards Committee
    as adjusted by Order No. 94 of 2001 of the Ministry of
    Finance of Romania, consistently applied.
    
	 
	
    “Recognised Telecommunications Operator”
    		
    has the meaning set out in the Share Retention
    and Subordination Deed.
    

 

 

			
	
    “Romanian Security Law”
    		
    means the law of Romania relating to security
    interests in personal property enacted under Title VI of Law
    Number 99/1999 as the same may be supplemented, amended,
    modified, republished or re-enacted from time to time.
    
	 
	
    “Romtelecom”
    		
    means S.N.T. Romtelecom S.A., the national
    telecommunications service provider in Romania.
    
	 
	
    “Romtelecom Interconnection Agreement”
    		
    means the interconnection agreement dated
    August 6, 1997 entered into between the Borrower and
    Romtelecom, in respect of the interconnection between the
    Borrower’s Network and Romtelecom’s network as amended
    by additional acts dated 12 March 1998, 2 May 1999 and 30 July
    1999, and any ministerial decrees, ordinances or orders issued
    after the date hereof, in respect of such interconnection in
    form and substance acceptable to NIB.
    
	 
	
    “Secured Parties”
    		
    means the Senior Lenders and each person which is
    a Hedge Provider from time to time.
    
	 
	
    “Security”
    		
    means the security created or agreed to be
    created pursuant to the Security Documents to secure, inter
    alia, all amounts owing to the Senior Lenders under the
    Financing Agreements.
    
	 
	
    “Security Agreement Over Accounts”
    		
    means the Security Agreement Over Accounts
    between the Secured Parties, the Borrower and such Working
    Capital Lenders, Collection Banks and Claims Agents (in each
    case as defined therein) as may be parties thereto in such
    capacity from time to time in respect of the Borrower Accounts
    held with banks in Romania, securing, inter alia, the
    obligations of the Borrower hereunder, which agreement shall be
    in form and substance satisfactory to NIB.
    
	 
	
    “Security Agreement Over Movables”
    		
    means the instrument pursuant to which the
    Borrower grants to the Secured Parties a security interest in
    all of the Borrower’s tangible and intangible movable
    assets including, without limitation, the Borrower’s
    enterprise and all of the Borrower’s present and future
    intangible assets and contractual rights and claims (including
    without limitation accounts receivable) and tangible movable
    assets (including without limitation all of the Borrower’s
    equipment, machinery, raw materials, inventory and work in
    progress) together with the annexes, notices and
    

 

			
	
		
    acknowledgements and consents in the forms
    attached thereto, which instrument shall be in form and
    substance satisfactory to NIB.
    
	 
	
    “Security Agreement Over Shares”
    		
    means the instrument pursuant to which the
    Shareholders grant a security interest in favour of the Secured
    Parties over issued and outstanding shares of the Borrower, and
    any supplements, amendments, or additional security instruments
    entered into pursuant thereto, together with the original share
    certificates representing all such shares, for the purpose of
    securing, inter alia, the obligations of the Borrower hereunder,
    which instrument shall be in form and substance satisfactory to
    NIB.
    
	 
	
    “Security Documents”
    		
    means:
    
	 
	
		
    (a)     the
    Security Agreement Over Movables;
    
	 
	
		
    (b)     the
    Insurance Assignment;
    
	 
	
		
    (c)     the
    Security Agreement Over Shares;
    
	 
	
		
    (d)     the
    Security Agreement Over Accounts and any other instrument
    pursuant to which the Borrower grants to the Secured Parties and
    Working Capital Lenders a security interest in the Borrower
    Accounts;
    
	 
	
		
    (e)     each
    Immovables Hypothec;
    
	 
	
		
    (f)     the
    Offshore Accounts Charge;
    
	 
	
		
    (g)     the
    Assignment of Receivables;
    
	 
	
		
    (h)     any
    Assignment of Subordinated Debt; and
    
	 
	
		
    (i)     any
    other present or future agreement or instrument to which the
    Borrower or any Shareholder is a party, confirming or evidencing
    any security interest, guarantee, covenant, indemnification or
    other assurance against financial loss in respect of all or any
    of the Borrower’s obligations hereunder or under any
    Financing Agreement whether now existing or arising in the
    future and whether fixed, prospective or contingent.
    

 

 

			
	
    “Security Sharing and Intercreditor
    Agreement”
    		
    means the security sharing and intercreditor
    agreement dated on or about the date hereof entered into between
    the Senior Lenders and any Hedge Provider and Working Capital
    Lender which may become party to it from time to time, and any
    other party thereto from time to time providing for, inter alia,
    sharing of the Security and any other security interest created
    in favour of the parties thereto (from time to time) to secure
    any amounts owing by the Borrower to such parties.
    
	 
	
    “Senior Debt to EBITDA Ratio”
    		
    means, for any period of calculation, the result
    of the aggregate principal amount of the Senior Loans
    outstanding as of the last day of such period divided by EBITDA
    for such period.
    
	 
	
    “Senior Debt Service”
    		
    means the aggregate, for any period of
    calculation, of all scheduled repayments of principal and all
    interest and fees (other than fees payable in connection with
    the entering into of the Senior Loan Agreements) paid or due and
    owing in such period under or in respect of the Senior Loans.
    
	 
	
    “Senior Debt Service Coverage Ratio”
    		
    means the result of Free Cash Flow in any period
    of calculation divided by Senior Debt Service for such period of
    calculation.
    
	 
	
    “Senior Lenders”
    		
    means, collectively, NIB, EBRD and EDC.
    
	 
	
    “Senior Loans”
    		
    means, collectively, the NIB Loan, the EBRD Loan
    and the EDC Loan or, as the context may require, the aggregate
    principal amount thereof from time to time outstanding.
    
	 
	
    “Senior Loan Agreements”
    		
    means, collectively, this Agreement, the EBRD
    Loan Agreement and the EDC Loan Agreement.
    
	 
	
    “Share Retention and Subordination Deed”
    		
    means the agreement between the Borrower, the
    Operating Shareholders and the Senior Lenders pursuant to which
    the Operating Shareholders agree, inter alia, (i) to
    certain restrictions on their ability to effect changes in their
    equity interest in, or transfer shares in the capital of, the
    Borrower without the prior written consent of the Senior
    Lenders, and (ii) to subordinate the payment of any amounts
    payable by the Borrower to them to all amounts payable by the
    Borrower to the Senior Lenders, which agreement shall be in form
    

 

 

			
	
		
    and substance satisfactory to NIB.
    
	 
	
    “Shareholders’ Equity”
    		
    means the aggregate of (i) the
    shareholders’ equity of the Borrower, calculated in
    accordance with Generally Accepted Accounting Principles,
    (excluding, for the purposes of such calculation comprehensive
    income adjustments to the shareholders’ equity of the
    Borrower made in accordance with Financial Accounting Standard
    133 and amendments thereto as issued from time to time by the
    Financial Accounting Standards Board of the United States), and
    (ii) the principal amount of all Permitted Quasi Equity.
    
	 
	
    “Shareholder Power of Attorney”
    		
    means the power of attorney granted by each
    Shareholder to the Senior Lenders in respect of the Financing
    Agreements, in form and substance satisfactory to the Senior
    Lenders.
    
	 
	
    “Shareholders”
    		
    means Vodafone Europe, ClearWave Holdings, Deraso
    Holding B.V., Dargate Limited, Devaynes Holdings Limited, Upson
    Enterprises Limited and Commercial Capital Emerging Markets
    Limited, their successors and permitted assigns and any other
    person at any time owning shares in the capital of the Borrower.
    
	 
	
    “Sites”
    		
    means all land or buildings in Romania over which
    the Borrower holds, as the case may be, an ownership interest,
    freehold interest, leasehold interest, easement, concession,
    right of use or other right or interest in connection with the
    operation of the Borrower’s Network.
    
	 
	
    “Site Agreement”
    		
    means each lease agreement, easement agreement,
    concession or use agreement, or other contract entered into by
    the Borrower creating the right of the Borrower to occupy and
    utilise a Site for the purpose of operation of the
    Borrower’s Network.
    
	 
	
    “Statutes”
    		
    means the statutes of the Borrower dated
    November 22, 1996, as amended by additional acts approved
    prior to the date hereof and registered in the Trade Register in
    Bucharest, Romania, among the Shareholders, regarding, inter
    alia, the establishment and shareholdings of the Borrower.
    
	 
	
    “Subordinated Debt”
    		
    means Permitted High Yield Back to Back Debt or
    Permitted Quasi Equity.
    

 

 

			
	
    “Subsidiary”
    		
    means, with respect to any entity, any other
    entity over 50% of whose capital is owned, directly or
    indirectly, by such entity or which is otherwise effectively
    controlled by such entity.
    
	 
	
    “Telerate Page 3750”
    		
    means the display of London Interbank offered
    rates of major banks for deposits in Dollars designated as page
    3750 on the Dow Jones Telerate Service (or such other page as
    may replace page 3750 on the Dow Jones Telerate Service for the
    purpose of displaying London Interbank offered rates for
    deposits in Dollars).
    
	 
	
    “TIWC”
    		
    means Telesystem International Wireless
    Corporation N.V., a corporation organised and existing under the
    laws of the Netherlands.
    
	 
	
    “Total Financial Debt”
    		
    means, at any time, the aggregate of all amounts
    of principal due and owing at such time under or in respect of
    (i) the Senior Loans, (ii) Permitted High Yield Back
    to Back Debt of the Borrower and (iii) any other Financial
    Debt of the Borrower other than the Existing Loans Indebtedness.
    
	 
	
    “Total Financial Debt Service”
    		
    means the aggregate (for any period of
    calculation) of all scheduled repayments of principal and all
    interest and fees (other than the fees payable in connection
    with the entering into of the Senior Loan Agreements) paid or
    due and owing in such period under or in respect of the
    Borrower’s Total Financial Debt.
    
	 
	
    “Total Financial Debt Service
    		
    means, for any period of calculation, the
    Coverage Ratio” result of Free Cash Flow for such period
    divided by Total Financial Debt Service for such period.
    
	 
	
    “Total Financial Debt to EBITDA Ratio”
    		
    means, for any period of calculation, the result
    of the aggregate principal amount of the Total Financial Debt
    outstanding as of the last day of such period divided by EBITDA
    for such period.
    
	 
	
    “Total Financial Debt to Equity Ratio”
    		
    means, at any time, the result of Total Financial
    Debt at such time, divided by Shareholders’ Equity at such
    time.
    
	 
	
    “Tranche I Commitment Period”
    		
    means the period commencing on the date of this
    Agreement and terminating on the earlier of (i) the date
    which is 90 days after the date of this Agreement and (ii)
    the date the obligation of NIB
    

 

 

			
	
		
    to make Disbursements hereunder terminates in
    accordance with the terms of this Agreement.
    
	 
	
    “Tranche I EBRD Loan”
    		
    means the maximum principal amount of the loan
    provided by EBRD to the Borrower pursuant to
    Section 3.01(1) of the EBRD Loan Agreement or, as the
    context may require, the principal amount thereof from time to
    time outstanding.
    
	 
	
    “Tranche I EDC Loan”
    		
    means the maximum principal amount of the loan
    provided by EDC to the Borrower pursuant to Section 3.01(1)
    of the EDC Loan Agreement or, as the context may require, the
    principal amount thereof from time to time outstanding.
    
	 
	
    “Tranche I Loan”
    		
    means the aggregate of the Tranche I NIB Loan,
    the Tranche I EBRD Loan and the Tranche I EDC Loan.
    
	 
	
    “Tranche I NIB Loan”
    		
    means the maximum principal amount of the loan
    provided for in Section 3.01(1) or, as the context may
    require, the principal amount thereof from time to time
    outstanding.
    
	 
	
    “Tranche II Commitment Period”
    		
    means the period commencing on the date of this
    Agreement and terminating on the earlier of
    (i) December 31, 2003 and (ii) the date the
    obligation of NIB to make Disbursements hereunder terminates in
    accordance with the terms of this Agreement.
    
	 
	
    “Tranche II EBRD Loan”
    		
    means the maximum principal amount of the loan
    provided by EBRD to the Borrower pursuant to
    Section 3.01(2) of the EBRD Loan Agreement or, as the
    context may require, the principal amount thereof from time to
    time outstanding.
    
	 
	
    “Tranche II EDC Loan”
    		
    means the maximum principal amount of the loan
    provided by EDC to the Borrower pursuant to Section 3.01(2)
    of the EDC Loan Agreement or, as the context may require, the
    principal amount thereof from time to time outstanding.
    
	 
	
    “Tranche II Loan”
    		
    means the aggregate of the Tranche II NIB Loan,
    the Tranche II EBRD Loan and the Tranche II EDC Loan.
    
	 
	
    “Tranche II NIB Loan”
    		
    means the maximum principal amount of the loan
    provided for in Section 3.01(2) or, as the context may
    require, the principal amount thereof from
    

 

 

			
	
		
    time to time outstanding.
    
	 
	
    “UMTS”
    		
    means the universal mobile telecommunications
    system known as International Telecommunications Union standard
    IMT-2000.
    
	 
	
    “UMTS License”
    		
    means the license for the provision in Romania of
    UMTS telecommunications services that may be granted to the
    Borrower by the Ministry, as such license may be amended,
    supplemented, restated, novated or assigned from time to time.
    
	 
	
    “UMTS License Compliance”
    		
    occurs upon achievement by the Borrower of all
    material terms and conditions of the UMTS License.
    
	 
	
    “UMTS License Costs”
    		
    means license fees and other expenses paid or
    payable by the Borrower in connection with the acquisition of
    the UMTS License.
    
	 
	
    “USD Equivalent Amount”
    		
    means, in respect of any amount denominated in
    any currency, the equivalent, in Dollars, of such amount
    calculated by reference to the rate of exchange available to NIB
    on the international foreign exchange market (and notified to
    the Borrower) two (2) Business Days prior to the date of
    determination.
    
	 
	
    “Vodafone”
    		
    means at any time
    
	 
	
		
    (i)     any
    Controlled Affiliate of Vodafone Group Plc that owns directly an
    Economic Interest or a Controlling Interest in the Borrower or
    in a Joint Affiliate, or
    
	 
	
		
    (ii)     if
    the combined Economic Interest or Controlling Interest in the
    Borrower owned (directly or indirectly) by Vodafone Group Plc or
    one or more Controlled Affiliates of Vodafone Group Plc or a
    Joint Affiliate is greater than the Economic Interest and
    Controlling Interest of ClearWave in the Borrower at such time,
    Vodafone Group Plc and any Controlled Affiliate of Vodafone
    Group Plc that owns directly an Economic Interest or a
    Controlling Interest in the Borrower or in a Joint Affiliate.
    
	 
	
    “Vodafone Europe”
    		
    means Vodafone Europe B.V., a corporation
    organized and existing under the laws of the
    

 

 

			
	
		
    Netherlands.
    
	 
	
    “Vodafone Technical”
    		
    means Vodafone Technical Services, a corporation
    organized and existing under the laws of the State of California
    in the United States of America, and an Affiliate of Vodafone.
    
	 
	
    “Working Capital”
    		
    means the amount by which Current Assets
    (excluding Cash and Cash Equivalents, deferred and future income
    tax assets, income tax receivables/recoverables and assets
    arising out of derivative financial instruments) exceed Current
    Liabilities (excluding Financial Debt, accrued income taxes
    payable, deferred or future income tax liabilities, accrued
    interest payable, accrued dividends payable, other accruals with
    respect to Distributions and liabilities arising out of
    derivative financial instruments).
    
	 
	
    “Working Capital Facility”
    		
    means any working capital facility provided by a
    Working Capital Lender to the Borrower on terms and conditions
    acceptable to NIB acting reasonably, including without
    limitation the facilities provided under (i) the ABN
    Working Capital Agreement and (ii) the Citibank Working
    Capital Agreement provided that the available limits under all
    such Working Capital Facilities shall not exceed in the
    aggregate $20 million.
    
	 
	
    “Working Capital Facility Agreement”
    		
    means any agreement entered into between the
    Borrower and a Working Capital Lender for provision of a Working
    Capital Facility.
    
	 
	
    “Working Capital Lender”
    		
    means any provider (which in each case shall be a
    financial institution that is not an Affiliate of the Borrower
    or any Shareholder) of a Working Capital Facility acceptable to
    NIB pursuant to documentation to be provided by the Borrower to
    NIB and containing terms and conditions consistent with this
    Agreement and the other Financing Agreements.
    

Section 1.02  Interpretation

		
	(a)	
    In this Agreement, unless the
context otherwise requires, words denoting the singular include
the plural and vice versa, words denoting persons include
corporations, partnerships, companies, firms and other legal
persons and references to a person includes its successors and
permitted assigns.
    

 

		
	(b)	
    In this Agreement, a reference to a specified
    Article, Section, Schedule or Exhibit shall be construed as a
    reference to that specified Article or Section of, or Schedule
    or Exhibit to, this Agreement.
    

		
	(c)	
    In this Agreement, a reference to an agreement
    shall be construed as a reference to such agreement as it may be
    amended, varied, supplemented, novated or assigned from time to
    time.
    

		
	(d)	
    In this Agreement, the headings and the Table of
    Contents are inserted for convenience of reference only and
    shall not affect the interpretation of this Agreement.
    

		
	(e)	
    In this Agreement, “control”
    (including, with correlative meanings, the terms
    “controlled by” and “under common control
    with”), as used with respect to any person, means the
    possession, directly or indirectly, of the power to direct or
    cause the direction of the management and policies of such
    person, whether through the ownership of voting shares, by
    contract or otherwise.
    

		
	(f)	
    In this Agreement, “continuing” in
    relation to an Event of Default, shall be construed as a
    reference to an Event of Default which has not been waived in
    accordance with the terms hereof and, in relation to a Potential
    Event of Default, one which has not been remedied within the
    relevant grace period or waived in accordance with the terms
    hereof.
    

		
	(g)	
    In this Agreement a “month” is a
    reference to a period starting on one day in a calendar month
    and ending on the numerically corresponding day in the next
    succeeding calendar month save that:
    

			
	 	(i)	
    if any such numerically corresponding day is not
    a Business Day, such period shall end on the immediately
    succeeding Business Day to occur in that next succeeding
    calendar month or, if none, it shall end on the immediately
    preceding Business Day; and
    

			
	 	(ii)	
    if there is no numerically corresponding day in
    that next succeeding calendar month, that period shall end on
    the last Business Day in that next succeeding calendar month;
    

		
	 	
    (and references to “months” shall be
    construed accordingly).
    

		
	(h)	
    In this Agreement, a “successor” shall
    be construed so as to include an assignee or successor in title
    of such party and any person who under the laws of its
    jurisdiction of incorporation or domicile has assumed the rights
    and obligations of such party under this Agreement or to which,
    under such laws, such rights and obligations have been
    transferred.
    

		
	(i)	
    In this Agreement, “tax” shall be
    construed so as to include any tax, levy, impost, duty or other
    charge of a similar nature (including any penalty or interest
    payable in connection with any failure to pay or any delay in
    paying any of the same).
    

 

		
	(j)	
    In this Agreement, “VAT” shall be
    construed as a reference to value added tax including any
    similar tax which may be imposed in place thereof from time to
    time.
    

		
	(k)	
    In this Agreement, “winding-up”,
    “dissolution” or “administration” of a
    company or corporation shall be construed so as to include any
    equivalent or analogous proceedings under the law of the
    jurisdiction in which such company or corporation is
    incorporated or any jurisdiction in which such company or
    corporation carries on business including the seeking of
    liquidation, winding-up, reorganization, dissolution,
    administration, arrangement, adjustment, protection or relief of
    debtors.
    

		
	(l)	
    In this Agreement, a “wholly-owned
    Subsidiary” of a company or corporation shall be construed
    as a reference to any company or corporation which has no other
    shareholders or members except that other company or corporation
    and that other company’s or corporation’s wholly-owned
    subsidiaries or persons acting on behalf of that other company
    or corporation or its wholly-owned subsidiaries.
    

		
	(m)	
    In this Agreement, a statute or treaty shall be
    construed as a reference to such statute or treaty as the same
    may have been, or may from time to time be, amended or, in the
    case of a statute, re-enacted.
    

		
	(n)	
    In this Agreement, a “holding company”
    of a company or a corporation shall be construed as a reference
    to any company or corporation of which the first-mentioned
    company or corporation is a subsidiary.
    

ARTICLE II — REPRESENTATIONS AND
WARRANTIES

 

Section 2.01  Representations
Regarding the Project

The Borrower represents and warrants as of the
date hereof that the forecasts, projections and calculations in
the Base Case Financial Forecast have been prepared by the
Borrower in good faith giving due and careful consideration to
all relevant factors and based on assumptions which were
reasonable at the time that such forecasts, projections and
calculations were prepared, up to and including the date of this
Agreement, and there has been nothing since the date such
forecasts, projections and calculations were prepared that would
make them or the information contained in the Base Case
Financial Forecast unreasonable or misleading.

Section 2.02  Representations
Regarding the Borrower

The Borrower represents and warrants as follows:

		
	(a)	
    Incorporation. The
    Borrower is a joint stock company duly organized and validly
    existing under the laws of Romania and registered with all
    relevant registration bodies in Romania and has full power to
    own the properties which it owns or will own for the purposes of
    the Project and to carry out the businesses which it carries out
    or will carry out for the purposes of the Project.
    

		
	(b)	
    Conduct of Business and Subsidiaries.
    The Borrower conducts no business
    other than the implementation and operation of the Project and
    has no Subsidiaries.
    

		
	(c)	
    Share Capital. The
    Borrower has an authorised and issued capital of 200,279,767
    shares with a nominal value of 10,000 Lei each. The following is
    a list of all
    

 

		
		
    shareholders in the Borrower, with their
    respective shareholdings, as of the date of this Agreement:
    

	 	 	 	 	 	 	 	 	 
			
			Borrower’s Shareholding Structure
			

			Percentage of		
			Shareholding		Number of Shares
			
		

	
    
    ClearWave Holdings
    

    	 	 	63.541	%	 	 	127,260,860	 
	
    
    Vodafone Europe
    

    	 	 	20.1	%	 	 	40,256,233	 
	
    
    Deraso Holding B.V
    

    	 	 	14.4	%	 	 	28,840,286	 
	
    
    Dargate Limited
    

    	 	 	0.9	%	 	 	1,802,516	 
	
    
    Devaynes Holdings Limited
    

    	 	 	0.526	%	 	 	1,052,631	 
	
    
    Upson Enterprises Limited
    

    	 	 	0.276	%	 	 	552,632	 
	
    
    Commercial Capital Emerging Markets Limited
    

    	 	 	0.257	%	 	 	514,609	 
	 	 	 	
	 	 	 	
	 
	
    
    Total
    

    	 	 	100.0	%	 	 	200,279,767	 
	 	 	 	
	 	 	 	
	 

		
	 	
    All of the shares listed above have been validly
    issued and are fully paid. The only issued shares of the
    Borrower are registered shares. There are no options, warrants
    or instruments convertible into shares or other agreements
    relating to the existing shares of the Borrower or for the
    issuance of additional shares of any class or description of the
    Borrower, except for any stock option plan identified in
    Section 6.06. No person has any right (other than as a
    shareholder) to share in the profits of the Borrower.
    

		
	(d)	
    Officers. As of the
    date of this Agreement, the Chairman of the Board and Chief
    Executive Officer of the Borrower is Alexander Tolstoy, the
    President and Chief Operating Officer of the Borrower is Edward
    Murray Lattimore, the Senior Vice President and Chief Financial
    Officer of the Borrower is James J. Jackson and the Vice
    President of Finance and Logistics of the Borrower is Terry
    Lobraico.
    

		
	(e)	
    Financial Statements.
    The balance sheet of the Borrower as
    at December 31, 2001 and the related income statement, cash flow
    statement and statement of changes in equity of the Borrower for
    the Financial Year ending on that date, and the management
    report thereon, certified by the Auditors, present a true and
    fair view of the financial condition of the Borrower as of the
    date of such balance sheet and for the period covered by such
    income statement, cash flow statement and statement of
    shareholders’ equity and were prepared in accordance with
    Generally Accepted Accounting Principles. The Borrower had, as
    of the date of such balance sheet, no material contingent
    obligations, liabilities for taxes or unusual forward or long
    term commitments not disclosed by, or reserved against, in such
    balance sheet. Since the date of such balance sheet, the
    Borrower has not suffered any material adverse change in its
    business, operations or financial condition, incurred any
    substantial or unusual loss or liability or undertaken or agreed
    to undertake any substantial or unusual obligation except under
    the Financing Agreements, Project Agreements and other Material
    Agreements.
    

		
	(f)	
    Title to Assets. The
    Borrower has good and marketable legal title to all moveable
    property of every kind whatsoever to which the Security
    Agreement Over Movables
    

 

		
		
    applies. The Borrower does not own any immovable
    property. The Borrower’s assets are not subject to any Lien
    and the Borrower is not subject to any contract, arrangement or
    law, whether conditional or unconditional, pursuant to which any
    Lien on its assets may be created, except for Permitted Liens.
    

		
	(g)	
    Material Agreements.
    As of the date hereof, the Borrower is
    not a party to, or committed to enter into, any agreement, other
    than the Financing Agreements, the Project Agreements, the
    Existing Loan Agreements or any other of the Material Agreements:
    

			
	 	(1)	
    that involves the payment of more than $2,500,000
    (or the equivalent thereof in other currencies) per year or in
    the aggregate more than $5,000,000 (or the equivalent thereof in
    other currencies) over the term of such agreement; or
    
	 
	 	(2)	
    that is material to the Borrower’s ability
    to carry on its business as presently conducted, to carry out
    the Project or to satisfy its obligations under this Agreement.
    

		
	(h)	
    Compliance with Law.
    The Borrower is not materially in
    violation of any Law presently in effect. To the best of the
    Borrower’s knowledge, and except as already disclosed in
    writing to NIB, no Law has been proposed or is expected which
    may have a material adverse effect on the Project, the
    Borrower’s business, operations or financial condition or
    the ability of the Borrower to perform any of its obligations
    under any Financing Agreement or Project Agreement. All tax
    returns and reports of the Borrower required by law to be filed
    have been duly filed and all tax assessments, fees and other
    governmental charges upon the Borrower, its properties and its
    income, which are due and payable, have been paid, other than
    those currently payable without penalty or interest. Neither the
    Borrower nor any of its officers, directors or authorised
    employees, agents or representatives has paid, promised to pay
    or offered to pay, or authorised the payment of, any commission,
    bribe, pay-off or kickback related to the Project or the
    Borrower’s business that violates any applicable Law or
    entered into any agreement pursuant to which any such
    commission, bribe, pay-off or kickback may or will at any time
    be paid.
    

		
	(i)	
    No Default. The
    Borrower is not in default under any Material Agreement or other
    material obligation or duty by which it or any of its properties
    or assets is bound, and there exists no Event of Default and no
    Potential Event of Default.
    

		
	(j)	
    Environmental Compliance.
    The Borrower and its businesses,
    operations, assets, equipment, property, leaseholds and other
    facilities are in compliance with the provisions of all
    applicable material environmental, health and safety laws. The
    Borrower has been issued with, or has applied for, all material
    required permits, licenses, certificates and approvals relating
    to, and has received no material complaint, order, directive,
    claim, citation or notice from any governmental authority or
    other person with respect to, air emissions, discharges to
    surface water or ground water, noise emissions, solid or liquid
    waste disposal, the use, generation, storage, transportation or
    disposal of toxic or hazardous substances or wastes or other
    environmental, health or safety matters. To the knowledge of the
    Borrower (having made all reasonable enquiries), there is no
    contamination on any Site and each is suitable for the
    implementation of the Project.
    

 

		
	(k)	
    Litigation. The
    Borrower is not engaged in, or, to the best of its knowledge,
    threatened by, any litigation, arbitration or administrative
    proceeding, the outcome of which might have a material adverse
    effect on the Project, the Borrower’s business, operations
    or financial condition or the ability of the Borrower to perform
    any of its obligations under any Financing Agreement or Project
    Agreement.
    

		
	(l)	
    Project. The
    Borrower has obtained all material governmental or regulatory
    licenses, approvals, consents, notarizations, permits, rulings,
    filings or registrations at any local, regional, municipal,
    republic or other levels of government required for the
    implementation and completion of the Project and the carrying on
    of the business of the Borrower as presently conducted or as
    contemplated thereby, and all such licenses, approvals,
    consents, filings, permits, rulings, notarizations and
    registrations were made or obtained and remain valid as at the
    date hereof and the Borrower has no reason to believe at the
    date hereof that such licenses, approvals, consents, permits,
    rulings, notarizations, filings or registrations will be
    rescinded, cancelled or suspended.
    

		
	(m)	
    Head Office. The
    Borrower’s head office and the office at which it keeps its
    records concerning the Financing Agreements, Project Agreements
    and other Material Agreements is at Bucharest, Romania.
    

		
	(n)	
    Insurance. The
    factual information contained in all written information
    supplied by or at the direction of the Borrower to its insurers
    (or otherwise made available to such insurers) in connection
    with the Borrower’s business and the Project, as updated
    from time to time, to the best of the Borrower’s knowledge
    after due inquiry, is true and accurate in all material respects
    as of the date hereof and the Borrower is not aware of any facts
    or circumstances that have not been disclosed to those insurers
    that might reasonably be expected, if so disclosed, to adversely
    affect the nature or extent of the coverage to be provided under
    the insurance.
    

Section 2.03  Representations
Regarding the Agreements

The Borrower represents and warrants as follows:

		
	(a)	
    Corporate Power. The
    Borrower has the corporate power to carry on its business, own
    its property and assets and to enter into and perform the
    Financing Agreements, Project Agreements and other Material
    Agreements to which it is a party.
    

		
	(b)	
    Due Authorization; Enforceability; No
    Conflict. The Financing Agreements and
    Project Agreements to which the Borrower is a party have been
    duly authorised by the Borrower. This Agreement has been duly
    executed by the Borrower and this Agreement constitutes, and the
    other Financing Agreements and Project Agreements to which the
    Borrower is a party, as or when executed and delivered,
    constitute or will constitute valid and legally binding
    obligations of the Borrower, enforceable in accordance with
    their respective terms. The making of the Financing Agreements,
    Project Agreements and other Material Agreements and the
    compliance with the terms thereof:
    

			
	 	(1)	
    will not result in the violation of the
    Borrower’s Charter or any provision contained in any Law
    applicable to the Borrower;
    

 

			
	 	(2)	
    will not conflict with or result in the breach of
    any provision of, or require any consent under, or result in the
    imposition of any Lien under, any agreement or instrument to
    which the Borrower is a party or by which the Borrower or any of
    its assets is bound; and
    
	 
	 	(3)	
    will not constitute a default or an event which,
    with the giving of notice, the passage of time or the making of
    any determination, or any combination thereof, would constitute
    a default under any such agreement or instrument.
    

		
	(c)	
    Governmental Approvals.
    No governmental licenses, approvals,
    consents, rulings, permits, filings or registrations are
    required for the due execution, delivery or performance by the
    Borrower of any Financing Agreement, Project Agreement, or the
    validity or enforceability thereof other than (i) any
    licenses, approvals, consents, filings and registrations which
    have been made or obtained and remain valid as of the date
    hereof, (ii) any licenses, authorizations, consents or
    approvals of the National Bank of Romania which the Borrower is
    in the process of obtaining, and (iii) any immaterial
    licenses, approvals, consents, filings and registrations which
    the Borrower is in the process of obtaining and which have been
    identified by the Borrower to NIB in writing prior to the date
    hereof, and the Borrower has no reason to believe that such
    licenses, approvals, consents, filings or registrations will be
    rescinded, cancelled or suspended or, in the case of paragraph
    (ii) or (iii), not obtained.
    

		
	(d)	
    Ranking. This
    Agreement constitutes a direct, unconditional and secured
    obligation of the Borrower and the Debt incurred by the Borrower
    hereunder ranks and will rank in priority of payment senior to
    all other present and future indebtedness of the Borrower other
    than (i) the EBRD Loan, the EDC Loan, any Working Capital
    Facility and any Debt owed to a Hedge Provider with respect to
    which the Debt incurred by the Borrower hereunder ranks at least
    pari passu and (ii) at any time prior to the
    Existing Loans Repayment Date, the Existing Loans Indebtedness.
    

		
	(e)	
    Security. Each
    Security Document will, when executed and delivered, constitute
    a valid security interest in and Lien on the collateral covered
    by such Security Document, securing payment of all principal,
    interest and other amounts payable to the Senior Lenders under
    the Financing Agreements and upon registration with the relevant
    registries as required under applicable law shall be perfected
    and shall rank senior to all other Liens on such collateral
    other than Permitted Liens. The Borrower is not a party to any
    other security agreement or instrument creating or purporting to
    create a Lien on such collateral other than Permitted Liens. The
    Security is not subject to avoidance or loss of priority on
    liquidation of the Borrower or in bankruptcy, composition or
    other insolvency proceedings relating to the Borrower.
    

		
	(f)	
    Project and Material Agreements.
    Each of the Project Agreements and
    Material Agreements is in full force and effect without
    modification from the description thereof set forth in
    Section 1.01 (without the application of
    Section 1.02(c)). There has occurred no breach, and no
    event which with the giving of notice, the passage of time or
    the making of any determination, or any combination thereof,
    would constitute a breach of any of the Project Agreements or
    Material Agreements.
    

		
	(g)	
    Taxes. There is no
    stamp or other tax or charge of Romania or any political
    subdivision or taxing authority thereof or of any taxing
    authority, federation or
    

 

		
		
    association of which Romania is a member to be
    imposed on or by virtue of the execution, delivery or
    performance of any Financing Agreement or necessary to ensure
    the legality, validity, enforceability or admissibility in
    evidence thereof in Romania other than:
    

			
	 	(1)	
    A registration charge payable in respect of the
    security interest granted in the Borrower’s enterprise
    under the Security Agreement Over Movables in the Trade Register
    in Bucharest;
    
	 
	 	(2)	
    Registration charges payable in respect of
    registrations of the Security in the Electronic Archive;
    
	 
	 	(3)	
    A legalisation fee payable in respect of the
    legalisation of the Financing Agreements;
    
	 
	 	(4)	
    Fees payable in respect of certification of
    translations into Romanian or English of Financing Agreements;
    
	 
	 	(5)	
    A registration fee payable in respect of
    registration of any Immovables Hypothecs in the relevant
    immovable registry;
    
	 
	 	(6)	
    registration charges payable in respect of the
    registration of the Security with the Romanian State Office for
    Patents and Trade Marks; and
    
	 
	 	(7)	
    A registration charge payable on each updating of
    the Schedules and Annexes to the Security Agreement Over
    Movables, the Security Agreement Over Shares, and the Security
    Agreement Over Accounts .
    

Section 2.04  Acknowledgement
and Warranty

The Borrower acknowledges that it has made the
representations and warranties contained in Sections 2.01,
2.02 and 2.03 with the intention of inducing NIB to enter into
this Agreement, that the repetition of such representations and
warranties will induce NIB to make Disbursements hereunder, and
that NIB has entered into this Agreement on the basis of, and in
full reliance on, each of such representations and warranties.
The Borrower warrants that it has no knowledge of any additional
facts or matters the omission of which makes any of such
representations and warranties misleading or which would or
might reasonably be expected to affect the judgement of a
prospective lender regarding lending to the Borrower.

ARTICLE III — BANK
LOAN

 

Section 3.01  Amount and
Currency

Subject to the terms and conditions of this
Agreement, NIB agrees to lend to the Borrower an amount, in
Dollars, not to exceed in the aggregate $35,000,000, consisting
of:

			
	 	(1)	
    the Tranche I NIB Loan in an amount not to exceed
    $27,766,666; and
    
	 
	 	(2)	
    the Tranche II NIB Loan in an amount not to
    exceed $7,233,334.
    

 

Section 3.02  Purpose

		
	(a)	
    The Borrower shall utilize all proceeds from the
    Tranche I NIB Loan towards prepayment of the Existing Loans
    Indebtedness, and to pay the fees payable by the Borrower in
    connection with the Senior Loan Agreements and the
    Borrower’s and the Senior Lenders’ costs incurred in
    connection with the Senior Loan Agreements and the other
    Financing Agreements.
    

		
	(b)	
    The Borrower shall use all proceeds from the
    Tranche II NIB Loan towards Capital Expenditures associated with
    the Project, (other than in connection with the Borrower’s
    UMTS Network) or for the payment of the UMTS License Costs by
    the Borrower.
    

		
	(c)	
    As of the date hereof, the total amount of
    principal owing under the Existing Loan Agreements is
    $211,196,367.47 and the amount of principal owing under each of
    the Existing Loan Agreements is:
    

	 	 	 	 	 
	Existing Loan Agreement		Amount
	
		

	
    
    Existing NIB Loan Agreement
    

    	 	$	22,676,978.00	 
	
    
    Existing EBRD Loan Agreement
    

    	 	$	114,996,138.01	 
	
    
    Existing EDC Loan Agreement
    

    	 	$	26,777,699.00	 
	
    
    Existing EKN Loan Agreement
    

    	 	$	36,745,551.46	 
	
    
    Existing Subordinated Loan Agreement
    

    	 	$	10,000,000.00	 

Section 3.03  Disbursements

		
	(a)	
    Subject to Section 3.04 and Article IV,
    the Tranche I NIB Loan shall be disbursed by NIB in one
    Disbursement on a Business Day during the Tranche I Commitment
    Period upon request of the Borrower. The Borrower may request
    the Disbursement of the Tranche I NIB Loan by submitting to NIB
    an original application for such Disbursement, in the form of
    Exhibit A and in substance satisfactory to NIB, at least
    five (5) Business Days prior to the proposed date of such
    Disbursement. Such application shall, unless NIB otherwise
    agrees, be irrevocable and binding on the Borrower.
    

		
	(b)	
    Subject to Section 3.04 and Article IV,
    the Tranche II NIB Loan shall be disbursed by NIB from time to
    time on any Business Day during the Tranche II Commitment Period
    in one or more Disbursements upon request of the Borrower. The
    Borrower may request a Disbursement of the Tranche II NIB Loan
    by submitting to NIB an original application for such
    Disbursement, in the form of Exhibit A and in substance
    satisfactory to NIB, at least eight (8) Business Days prior
    to the proposed date of such Disbursement. Such application
    shall, unless NIB otherwise agrees, be irrevocable and binding
    on the Borrower.
    

 

		
	(c)	
    Disbursements (other than a Disbursement of the
    entire undisbursed amount of the Tranche I NIB Loan or of the
    Tranche II NIB Loan) shall be made in amounts of no less than
    $1,000,000 and integral multiples of $200,000.
    

		
	(d)	
    Disbursements shall be made in compliance with
    Section 4.01, Section 4.02 and Section 4.03.
    

Section 3.04  Suspension and
Cancellation

		
	(a)	
    From time to time, NIB may, by notice to the
    Borrower, suspend or cancel the right of the Borrower to further
    Disbursements:
    

			
	 	(1)	
    if no disbursements under the Senior Loan
    Agreements have been made by the date which is 90 days
    after the date hereof, or such other date as may be agreed by
    the parties hereto;
    
	 
	 	(2)	
    if an Event of Default (or for the purposes of
    suspension only, a Potential Event of Default) has occurred and
    is continuing; or
    
	 
	 	(3)	
    if EBRD has suspended or cancelled the right of
    the Borrower to further Disbursements (as defined in the EBRD
    Loan Agreement) or EDC has suspended or cancelled the right of
    the Borrower to further Disbursements (as defined in the EDC
    Loan Agreement).
    

		
	 	
    Upon the giving of such notice, the right of the
    Borrower to further Disbursements shall be suspended or
    cancelled as indicated in the notice. The exercise by NIB of the
    right of suspension shall not preclude NIB from exercising its
    right of cancellation as provided in this Section 3.04, either
    for the same or another reason, and shall not limit any other
    rights of NIB under the Financing Agreements.
    

		
	(b)	
    The Borrower shall have the right at any time, on
    not less than 30 days’ prior notice to NIB, to cancel
    in whole or in part any undisbursed portion of the Tranche II
    NIB Loan, provided that:
    

			
	 	(1)	
    the Borrower shall cancel at the same time pro
    rata undisbursed amounts under the Tranche II EBRD Loan and
    Tranche II EDC Loan on the basis of initially applicable amounts
    available under the Tranche II EBRD Loan and Tranche II EDC Loan
    less any amounts previously cancelled of the initially
    applicable Tranche II NIB Loan, Tranche II EBRD Loan and Tranche
    II EDC Loan;
    
	 
	 	(2)	
    the Borrower shall pay to NIB at the same time
    all accrued commitment charges on the portion of the Tranche II
    NIB Loan to be cancelled and all other amounts due hereunder;
    
	 
	 	(3)	
    NIB is satisfied, acting reasonably, that
    adequate financing will remain available to the Borrower
    following such cancellation to enable the Borrower to complete
    the Project; and
    
	 
	 	(4)	
    in the case of partial cancellations of
    undisbursed portions of the Tranche II NIB Loan, the Tranche II
    EBRD Loan and the Tranche II
    

 

			
	 		
    EDC Loan such cancellations shall be in an
    aggregate amount of $2,000,000, and integral multiples of
    $1,000,000 thereafter.
    

		
	 	
    Any such notice of cancellation by the Borrower
    shall be irrevocable and binding on the Borrower. Amounts of the
    Tranche II NIB Loan which are cancelled by the Borrower may not
    be reinstated.
    

		
	(c)	
    The Borrower shall pay to NIB on the date of
    cancellation a cancellation fee of one eighth of one per cent
    (0.125%) of the principal amount of the NIB Loan to be
    cancelled. On termination of the Tranche I Commitment Period,
    the Borrower shall be deemed to have cancelled any then
    undisbursed portion of the NIB Loan and shall pay to NIB on the
    date of such termination the cancellation fee specified above.
    On termination of the Tranche II Commitment Period, the Borrower
    shall be deemed to have cancelled any then undisbursed portion
    of the Tranche II NIB Loan and shall pay to NIB on the date of
    such termination the cancellation fee specified above.
    

Section 3.05  Charges and
Commissions

		
	(a)	
    The Borrower shall pay to NIB during the Tranche
    I Commitment Period a commitment charge at the rate of one-half
    of one percent (0.5%) per annum on so much of the Tranche I NIB
    Loan as has not, from time to time, been disbursed to the
    Borrower or cancelled. The Borrower shall pay to NIB during the
    Tranche II Commitment Period a commitment charge at the rate of
    one percent (1%) per annum on so much of the Tranche II NIB Loan
    as has not, from time to time, been disbursed to the Borrower or
    cancelled. The commitment charges on the Tranche I NIB Loan and
    the Tranche II NIB Loan shall accrue from day to day, from the
    date of this Agreement. The commitment charges shall be
    calculated on the basis of the actual number of days elapsed in
    the relevant period and a 360-day year and shall be due and
    payable in arrears on each Interest Payment Date (even though no
    interest may be payable on such date), or such earlier date of
    cancellation as may be requested by NIB or the Borrower pursuant
    to Section 3.04.
    

		
	(b)	
    The charges and commissions referred to in this
    Section 3.05 are exclusive of any value added or other tax
    which might be chargeable in connection with such charges or
    commissions. If any such value added or other tax becomes
    chargeable, the Borrower shall pay such value added or other tax
    to NIB at the same time that the relevant charge or commission
    becomes due and payable.
    

Section 3.06  Interest

		
	(a)	
    Except as provided in this Section 3.06 the
    Borrower shall pay interest on the principal amount of each
    Disbursement of the NIB Loan from time to time outstanding
    during each Interest Period for such Disbursement at a rate
    equal to the sum of the Margin and LIBOR for such Interest
    Period.
    

		
	(b)	
    Interest shall:
    

			
	 	(1)	
    accrue from and including the first day of an
    Interest Period to but excluding the last day of such Interest
    Period;
    

 

			
	 	(2)	
    be calculated on the basis of the actual number
    of days elapsed and a 360-day year; and
    
	 
	 	(3)	
    be due and payable on the Interest Payment Date
    which is the last day of the relevant Interest Period.
    

		
	(c)	
    On each Interest Determination Date, NIB shall
    determine the interest rate(s) applicable during the relevant
    Interest Period and promptly give notice thereof to the
    Borrower. Each determination by NIB of the interest rate
    applicable to any portion of the NIB Loan shall be final,
    conclusive and binding upon the Borrower unless shown by the
    Borrower to the satisfaction of NIB that any such determination
    has involved clerical error.
    

		
	(d)	
    On December 31, 2003 and on each Quarter
    Date thereafter (each such date, the “Margin Determination
    Date”) the Margin under this Section 3.06 for the
    Interest Period following such Margin Determination Date shall
    be adjusted such that it equals the “Adjusted Margin”
    identified in the table below if the Total Financial Debt to
    EBITDA Ratio, calculated as of the Margin Determination Date by
    reference to the Quarterly Period ending on the Margin
    Determination Date and the preceding 3 Quarterly Periods, is the
    ratio identified next to such Adjusted Margin in the table below:
    

	 	 	 	 	 
	Total Financial Debt to EBITDA Ratio		Adjusted Margin
	
		

	
    
    greater than 2.00
    

    	 	 	3.50	%
	
    
    greater than 1.50 but less than or equal to 2.00
    

    	 	 	3.25	%
	
    
    greater than 1.00 but less than or equal to 1.50
    

    	 	 	3.00	%
	
    
    equal to or less than 1.00
    

    	 	 	2.50	%

		
	 	
    provided that if the Total Financial Debt Service
    Coverage Ratio of the Borrower calculated by reference to the
    Quarterly Period ending on the Margin Determination Date and the
    preceding 3 Quarterly Periods:
    

			
	 	(i)	
    falls below 1.40, the Margin for the Interest
    Period next following the Margin Determination Date shall be the
    greater of the Margin calculated in accordance with the
    preceding paragraph and 3.25%; and
    

			
	 	(ii)	
    falls below 1.25, the Margin for the Interest
    Period next following the Margin Determination Date shall be the
    greater of the Margin calculated in accordance with the
    preceding paragraph and 4.00%.
    

Section 3.07  Default
Interest

		
	(a)	
    If the Borrower fails to pay when due any amount
    payable by it under this Agreement, the overdue amount shall
    bear interest at a rate equal to the sum of:
    

			
	 	(1)	
    2.0% per annum;
    
	 
	 	(2)	
    the Margin applicable on the first day of the
    Default Interest Period; and
    

 

			
	 	(3)	
    the interest rate per annum offered in the London
    interbank market on the date two Business Days prior to the
    first day of the relevant Default Interest Period (or, at
    NIB’s option, on the first day of such Default Interest
    Period) for a deposit in Dollars of an amount comparable to the
    overdue amount for a period equal to the relevant Default
    Interest Period or, if NIB determines that deposits in the Loan
    Currency are not being offered in the London interbank market,
    in such amounts or for such period, the cost to NIB (expressed
    as a rate per annum) of funding the overdue amount from whatever
    sources it selects.
    

		
	(b)	
    Default interest shall:
    

			
	 	(1)	
    accrue from day to day from the due date to the
    date of actual payment, after as well as before judgement, if
    any;
    
	 
	 	(2)	
    be calculated on the basis of the actual number
    of days elapsed and a 360-day year;
    
	 
	 	(3)	
    be compounded at the end of each Default Interest
    Period; and
    
	 
	 	(4)	
    be due and payable forthwith upon demand.
    

		
	(c)	
    Each determination by NIB of the interest rates
    applicable to overdue amounts and of Default Interest Periods
    shall be final, conclusive and binding upon the Borrower unless
    shown by the Borrower to the satisfaction of NIB that any such
    determination has involved clerical error.
    

Section 3.08  Repayment

		
	(a)	
    The Borrower shall repay the NIB Loan on the
    following dates and in the following amounts (and the percentage
    to be repaid identified in the table below in each case shall be
    the percentage of the maximum amount of the NIB Loan disbursed
    to the Borrower hereunder):
    

 

	 	 	 	 	 
			Percentage of
			NIB Loan
	Date Payment Due		to be repaid
	
		

	
    
    14 January 2004
    

    	 	 	2.5	%
	
    
    14 April 2004
    

    	 	 	2.5	%
	
    
    14 July 2004
    

    	 	 	2.5	%
	
    
    14 October 2004
    

    	 	 	2.5	%
	
    
    14 January 2005
    

    	 	 	3.75	%
	
    
    14 April 2005
    

    	 	 	3.75	%
	
    
    14 July 2005
    

    	 	 	3.75	%
	
    
    14 October 2005
    

    	 	 	3.75	%
	
    
    14 January 2006
    

    	 	 	5	%
	
    
    14 April 2006
    

    	 	 	5	%
	
    
    14 July 2006
    

    	 	 	5	%
	
    
    14 October 2006
    

    	 	 	5	%
	
    
    14 January 2007
    

    	 	 	6.25	%
	
    
    14 April 2007
    

    	 	 	6.25	%
	
    
    14 July 2007
    

    	 	 	6.25	%
	
    
    14 October 2007
    

    	 	 	6.25	%
	
    
    14 January 2008
    

    	 	 	7.5	%
	
    
    14 April 2008
    

    	 	 	7.5	%
	
    
    14 July 2008
    

    	 	 	7.5	%
	
    
    14 October 2008
    

    	 	 	7.5	%
	 	 	 	
	 
	
    
               Total
    

    	 	 	100.0	%
	 	 	 	
	 

		
	(b)	
    From time to time while the NIB Loan is being
    disbursed, Disbursements shall be allocated by NIB for repayment
    on each of the dates set forth above in amounts which are pro
    rata to the amounts of the respective installments of the
    NIB Loan set forth above opposite those dates (with NIB
    adjusting those allocations as necessary so as to achieve whole
    numbers in each case).
    

		
	(c)	
    The dates for payment of principal of the NIB
    Loan are intended to coincide with Interest Payment Dates. If
    any Interest Payment Date is affected by the proviso to the
    definition of “Interest Payment Date”, then the
    corresponding date for payment of principal shall be changed to
    coincide with such Interest Payment Date.
    

Section 3.09  Mandatory
Prepayment

		
	(a)	
    Proceeds of Permitted High Yield Back to Back
    Debt. The Borrower shall forthwith
    make the following prepayments of the Senior Loans out of the
    net proceeds received by the Borrower from the issuance of any
    Permitted High Yield Back to Back Debt (in each case, on a
    pro rata basis and in the manner contemplated by
    Section 3.09(e)):
    

			
	 	(i)	
    in the event that, following such issuance, the
    aggregate amount of Permitted High Yield Back to Back Debt is
    equal to or less than $100,000,000, 25% of such Permitted High
    Yield Back to Back Debt;
    

			
	 	(ii)	
    in the event that, following such issuance, the
    aggregate amount of Permitted High Yield Back to Back Debt is
    greater than $100,000,000 and equal to or
    

 

		
	 	
    less than $200,000,000, the sum of (x)
    $25,000,000 and (y) 50% of the Permitted High Yield Back to
    Back Debt that exceeds $100,000,000; and
    

			
	 	(iii)	
    in the event that, following such issuance, the
    aggregate amount of Permitted High Yield Back to Back Debt is
    greater than $200,000,000, the sum of (x) $75,000,000, and
    (y) 100% of such Permitted High Yield Back to Back Debt in
    excess of $200,000,000;
    

		
	 	
    provided that in the event that,
    contemporaneously with the prepayment required under this
    Section 3.09(a), the Borrower makes or is required to make
    a prepayment under Section 3.09(f) of this Agreement or
    Section 3.10(f) of the EBRD Loan Agreement or
    Section 3.09(f) of the EDC Loan Agreement, the amount that
    the Borrower is required to prepay under this
    Section 3.09(a) shall be equal to the amount calculated in
    accordance with paragraphs (i), (ii) and (iii) above,
    as applicable, less the High Yield Related Prepayment Proportion
    of such amount.
    

(b)  Proceeds of Public Offering;
Public Secondary Sale.

			
	 	(i)	
    Public Offering. If,
    following a Public Offering by the Borrower, there is a change
    in the percentage of the share capital of the Borrower in
    respect of which NIB holds a security interest under the
    Security Agreement Over Shares, the Borrower shall apply all
    proceeds obtained by the Borrower from such Public Offering to
    immediately prepay that percentage of the principal amount
    outstanding under the Senior Loans as is identified in the table
    below under the heading “Percentage of Senior Loans to be
    Prepaid” next to the applicable percentage of the
    Borrower’s aggregate share capital in respect of which NIB
    holds a security interest under the Security Agreement Over
    Shares (provided that such percentage shall be of the aggregate
    amount of share capital of the Borrower issued and outstanding
    after such Public Offering takes place), which is identified in
    the table below under “Percentage of Share Capital
    Secured”, on a pro rata basis (in the manner
    contemplated in Section 3.09(e)):
    

	 	 	 	 	 
			Percentage of Senior Loans
	Percentage of Share Capital Secured		to be Prepaid
	
		

	
    
    Greater than 75%
    

    	 	 	0	%
	
    
    65% to 75%
    

    	 	 	25	%
	
    
    55% to 64.9%
    

    	 	 	50	%
	
    
    50.1% to 54.9%
    

    	 	 	70	%

			
	 	(ii)	
    Public Secondary
    Sale. If (1) any Shareholder
    proposes to sell, transfer, convey or assign any shares in the
    capital of the Borrower which are subject to the Security
    pursuant to a Public Secondary Sale, and (2) such
    Shareholder requires a release of the Security in respect of any
    or all of such shares in compliance with the terms of the Share
    Retention and Subordination Deed (if applicable) and the
    Security Agreement Over Shares, then the Borrower shall provide
    to NIB notice of such proposed transfer which notice shall
    include a
    

 

		
	 	
    request for such a release, and shall prepay that
    percentage of the principal amount outstanding under the Senior
    Loans as is identified in the table in Section 3.09(b)(i)
    under the heading “Percentage of Senior Loans to be
    Prepaid” next to the applicable percentage of the
    Borrower’s aggregate issued and outstanding share capital
    in respect of which NIB holds a security interest under the
    Security which is identified in the table in
    Section 3.09(b)(i) under “Percentage of Share Capital
    Secured” (provided that such percentage shall be determined
    after giving effect to such release of Security under
    Section 4.05 of the Share Retention and Subordination Deed
    and Section 4.4 of the Security Agreement Over Shares), on
    a pro rata basis (in the manner contemplated in
    Section 3.09(e)), provided that notwithstanding anything to
    the contrary in the Financing Agreements, NIB shall not be
    obligated to release or discharge any Security in respect of
    shares in the capital of the Borrower pursuant to
    Section 4.05 of the Share Retention and Subordination Deed
    or Section 4.4 of the Security Agreement Over Shares unless
    the Borrower has made the prepayment required under this
    Section 3.09(b)(ii) in respect of the transfer of such
    shares.
    

			
	 	(iii)	
    Stock Option Plan.
    For the purposes of Section 3.09(i) and (ii), any issuance
    of shares to employees of the Borrower pursuant to stock option
    plans permitted under Section 6.06(a) shall be deemed to
    constitute a Public Offering or a Public Secondary Sale, as
    applicable.
    

		
	(c)	
    Long Term Debt Repayment.
The Borrower shall prepay the principal amount outstanding
under the Senior Loans immediately upon and in an amount pro
rata (based on then outstanding amounts under the Senior
Loans and any other Long-term Debt referred to in this
Section 3.09(c)) to any prepayment, repurchase, or early
redemption by the Borrower of any other Long-term Debt (which
has been consented to by NIB pursuant to Section 6.02) of the
Borrower (other than in respect of any Working Capital Facility
or the Existing Loans) or any repayment of any such Long-term
Debt pursuant to any provision of any agreement or note which
provides directly or indirectly for acceleration of repayment in
time or amount, in the manner contemplated in
Section 3.09(e).
    

		
	(d)	
    Excess Cash. On the
fourteenth (14th) day after the end of each Quarterly Period
(the “Excess Cash Mandatory Prepayment Date”), the
Borrower shall prepay the principal amount outstanding of the
Senior Loans on a pro rata basis (in the manner
contemplated in Section 3.09(e)),
    

			
	 	(i)	
    if the Senior Debt Service Coverage Ratio
    calculated by reference to such Quarterly Period and the 3
    preceding Quarterly Periods is less than 1.40, in an amount
    equal to the lesser of
    

		
	 	
    (A)  100% of the Excess Cash Flow
    calculated by reference to such Quarterly Period and the three
    preceding Quarterly Periods; and
    
	 
	 	
    (B)  the Available Cash Balance,
    calculated at the end of such Quarterly Period; and
    

			
	 	(ii)	
    if the Senior Debt Service Coverage Ratio
    calculated by reference to such Quarterly Period and the 3
    preceding Quarterly Periods is equal to
    

 

		
	 	
    or greater than 1.40 but less than 1.70, in an
    amount equal to the lesser of
    

		
	 	
    (C)  50% of the Excess Cash Flow
    calculated by reference to such Quarterly Period and the three
    preceding Quarterly Periods; and
    
	 
	 	
    (D)  the Available Cash Balance,
    calculated at the end of such Quarterly Period;
    

		
	 	
    provided, for greater certainty, that for
    purposes of this Section 3.09(d) Curative Equity shall not be
    taken into account in calculating EBITDA for purposes of
    determining Excess Cash Flow and Senior Debt Service Coverage
    Ratio.
    

		
	(e)	
    Pro Rata. Any prepayment
under this Section 3.09 shall be made and applied on
(i) a pro rata basis between the Senior Lenders in
proportion to their respective principal amounts of Senior Loans
outstanding under the Senior Loan Agreements immediately prior
to such prepayment, and (ii) with respect to the NIB Loan, on a
pro rata basis between the Tranche I NIB Loan and
the Tranche II NIB Loan then outstanding in proportion to the
respective principal amounts thereof outstanding immediately
prior to such prepayment and (iii) shall be applied to the
outstanding repayment instalments of the NIB Loan in inverse
order of maturity.
    

		
	(f)	
    Assignment of Subordinated
Financial debt. The Borrower shall provide notice to NIB at
least 30 days prior to incurring any Permitted High Yield
Back to Back Debt, identifying in such notice (i) the
anticipated principal amount of such Permitted High Yield Back
to Back Debt and (ii) if the aggregate principal amount of all
Permitted High Yield Back to Back Debt (including the Permitted
High Yield Back to Back Debt identified in such notice) exceeds
$150,000,000, whether or not an Assignment of Subordinated Debt
will be provided in respect of all Permitted High Yield Back to
Back Debt. If such notice does not specify that such Assignment
of Subordinated Debt will be provided, then NIB will notify the
Borrower within 15 days of receipt of the Borrower’s
notice hereunder whether it requires the Borrower to prepay the
NIB Loan at the time of incurring such Permitted High Yield Back
to Back Debt. If NIB specifies in such notice that it requires
the Borrower to prepay the NIB Loan at the time of incurring
such Permitted High Yield Back to Back Debt, then, unless an
Assignment of Subordinated Debt in respect of all Permitted High
Yield Back to Back Debt, is provided to NIB contemporaneously
with the Borrower incurring such Permitted High Yield Back to
Back Debt, the Borrower shall prepay, contemporaneously with
incurring such Permitted High Yield Back to Back Debt, the
entire principal amount outstanding under the NIB Loan and will
pay at such time all accrued interest and other amounts in
respect thereof.
    

		
	(g)	
    Other Amounts; No Reduction.
The Borrower shall pay to NIB, at the same time as any
mandatory prepayment is made under this Section 3.09, all
accrued interest and other amounts payable on the principal
amount of the NIB Loan to be so prepaid and all other amounts
due hereunder in respect of such mandatory prepayment, including
without limitation any unwinding costs, which may arise as
provided under Section 3.14. Amounts of the NIB Loan
prepaid by the Borrower under this Section 3.09 may not be
reborrowed and the commitment of NIB to make the Tranche I NIB
Loan and the Tranche II NIB Loan available hereunder, and
the amount of the Tranche I NIB
    

 

		
	 	
    Loan and the Tranche II NIB Loan respectively,
    shall be permanently reduced by such prepaid amounts.
    

		
	(h)	
    Prepayment Fee. The
Borrower shall pay NIB on the prepayment date an administration
charge equal to one eighth of one percent (0.125%) of the
principal amount of the NIB Loan to be prepaid under this
Section 3.09.
    

Section 3.10  Voluntary
Prepayment

		
	(a)	
    The Borrower shall have the right
at any time, on not less than 20 Business Days’ prior
notice to NIB to prepay on any Interest Payment Date all or any
part of the principal amount of the Senior Loans then
outstanding; provided that:
    

			
	 	(1)	
    the Borrower shall pay to
    NIB at the same time all accrued interest and other amounts
    payable on the principal amount of the NIB Loan to be prepaid
    and all other amounts due hereunder in respect of such
    prepayment, including without limitation any unwinding costs,
    which may arise as provided under Section 3.14; and
    

			
	 	(2)	
    in the case of a partial prepayment:
    

			
	 	(i)	
    the USD Equivalent Amount of such prepayment
    shall be not less than $10,000,000 (and integral multiples of
    $5,000,000);
    
	 
	 	(ii)	
    the amount of such prepayment shall be applied
    and allocated as follows:
    

		
	 	
    (A)  first to outstanding repayment
    instalments of the EBRD B Loan, in inverse order of
    maturity, until such time as the outstanding principal amount of
    the EBRD B Loan is reduced to zero (0), and
    
	 
	 	
    (B)  second, to the outstanding
    repayment instalments of the EBRD A Loan, NIB Loan and the EDC
    Loan, on a pro rata basis in proportion to the respective
    principal amounts outstanding immediately prior to such
    prepayments under the EBRD A Loan, the NIB Loan and the EDC
    Loan, in inverse order of maturity,
    

		
	 	
    provided that NIB at its sole discretion upon
    10 Business Days’ written notice to the Borrower may
    require that such prepayment be allocated and applied instead
    between the NIB Loan and the Senior Loans provided by any other
    Senior Lender(s) that delivered a similar notice to the Borrower
    with a copy to NIB within such 10 Business Day period, such
    allocation to be made on a pro rata basis based on the
    principal amounts outstanding under the NIB Loan and such other
    Senior Loans immediately prior to such prepayment, in each case
    in inverse order of maturity. If NIB delivers such notice to the
    Borrower, the prepayment charge payable pursuant to
    Section 3.10(b) in respect of such prepayment shall be
    payable at the
    

 

		
	 	
    rate identified in Section 3.10(b)(ii) of
    the EBRD Loan Agreement.
    

			
	 	(3)	
    Any such notice of prepayment by the Borrower
    shall be irrevocable and binding on the Borrower and, upon
    delivery of such notice, the Borrower shall be obligated to
    prepay the NIB Loan in accordance with the terms thereof.
    

		
	(b)	
    The Borrower shall pay to NIB on
the date of prepayment of the NIB Loan under this
Section 3.10 an administration charge equal to,
    

			
	 	(A)	
    one per cent (1.0%) of the
    principal amount of the NIB Loan to be prepaid, if the
    prepayment occurs on or before 31 December 2004, or
    

			
	 	(B)	
    one half of one percent (0.5%) of
    the principal amount of the NIB Loan to be prepaid, if the
    prepayment occurs after 31 December 2004 but on or before
    31 December 2005; or
    

			
	 	(C)	
    one eighth of one percent (0.125%)
    of the principal amount of the NIB Loan to be prepaid if the
    prepayment occurs at any time after 31 December 2005.
    

		
	(c)	
    The Borrower shall not prepay all
or any part of the NIB Loan except at the times and the manner
expressly provided for in this Agreement.
    

		
	(d)	
    Amounts of the NIB Loan prepaid by
the Borrower under this Section 3.10 may not be reborrowed
and the commitment of NIB to make the NIB Loan available
hereunder shall be permanently reduced by such prepaid amounts.
    

		
	(e)	
    Any prepayment under this
Section 3.10 shall be made on a pro rata basis
between the Tranche I NIB Loan and the Tranche II NIB Loan.
    

Section 3.11  Payments

		
	(a)	
    Subject to Section 3.11(b)
all payments of principal, interest, charges, commissions, fees,
expenses and any other amounts due to NIB under this Agreement
shall be made, without set-off or counterclaim, in Dollars.
    

		
	(b)	
    All payments in respect of costs
and expenses of NIB due to NIB under this Agreement shall be
made in the currency in which such costs and expenses were
invoiced. All payments of charges payable under Section 3.05
shall be made, without set-off or counterclaim, in Dollars.
    

		
	(c)	
    All payment of principal,
interest, charges, commissions, fees, expenses and any other
amounts due to NIB under this Agreement shall be made for value
on the due date, to such account and in such place as NIB may
from time to time designate by not less than four
(4) Business Days’ notice to the Borrower.
    

		
	(d)	
    The sums to be disbursed by NIB to
the Borrower hereunder shall be payable in Dollars, for value,
unless otherwise agreed by the Borrower and NIB, on the value
date requested by the Borrower in its Disbursement application
and to such
    

 

		
	 	
    correspondent account in New York City as the
    Borrower may designate in its Disbursement application (with
    instructions to transfer such sums, at the Borrower’s risk
    and expense, to such account as the Borrower may designate in
    its Disbursement application).
    

		
	(e)	
    If the due date for any payment
under this Agreement would otherwise fall on a day which is not
a Business Day, then such payment shall instead be due on the
next succeeding Business Day.
    

		
	(f)	
    NIB shall have the right, to the
fullest extent permitted by law, to set off any amount owed by
NIB to the Borrower, whether or not matured, against any amount
then due and payable by the Borrower under any Financing
Agreement, whether or not NIB has demanded payment by the
Borrower of such amount and regardless of the currency or place
of payment of either such amount. NIB shall have the right, to
the fullest extent permitted by law, to deduct from the proceeds
of any Disbursement any charges, commissions, fees, expenses and
other amounts then due and payable by the Borrower to NIB under
any Financing Agreement and the credit advice of NIB shall
reflect such deduction.
    

Section 3.12  Insufficient
Payments

		
	(a)	
    If NIB at any time receives less
than the full amount then due and payable to it under this
Agreement, NIB shall have the right to allocate and apply such
payment in any way or manner and for such purpose or purposes
under this Agreement as NIB in its sole discretion determines,
notwithstanding any instruction that the Borrower may give to
the contrary.
    

		
	(b)	
    The Borrower shall indemnify NIB
against any losses resulting from a payment being received, or a
claim being filed or an order or judgement being given,
hereunder in a currency or place other than the currency and
place specified in Section 3.11(a), (b) and (c). The
Borrower shall pay such additional amount as is necessary to
enable NIB to receive, after conversion to such currency at a
market rate and transfer to such place, the full amount due to
NIB hereunder in the currency and at the place specified in
Section 3.11(a),(b) and (c).
    

Section 3.13  Taxes

		
	(a)	
    The Borrower shall pay or cause to
be paid all present and future taxes, duties, fees, royalties,
deductions, imposts and other charges of whatsoever nature,
together with any interest thereon and penalties with respect
thereto, now or at any time hereafter levied or imposed by
Romania or the Government of Romania, or by any department,
agency, political subdivision or taxing or other authority
thereof or therein, or by any organization of which Romania is a
member, or by any jurisdiction out of which or through which
payments hereunder are made, on or in connection with the
payment of any amounts due to NIB under this Agreement.
    

		
	(b)	
    All payments of principal,
interest and other amounts due to NIB under this Agreement shall
be made free and clear of, and without deduction or withholding
for or on account of, any taxes, duties, fees, royalties,
deductions, imposts, or charges, provided, however, that, in the
event that the Borrower is prevented by operation of law or
otherwise from making such payments free and clear of such
deductions or
    

 

		
	 	
    withholdings, the principal, interest or other
    amount (as the case may be) due under this Agreement shall be
    increased to such amount as may be necessary to remit to NIB the
    full amount it would have received had such payment been made
    without such deductions or withholdings.
    

Section 3.14  Unwinding
Costs

		
	(a)	
    If, for any reason (including,
without limitation, an acceleration pursuant to
Section 7.02, 7.03 or 7.04), any portion of the NIB Loan
which is subject to a variable interest rate in accordance with
Section 3.06(a) becomes due and payable on a date other
than the last day of an Interest Period, the Borrower shall pay
to NIB on demand the amount, if any, by which:
    

			
	 	(1)	
    the interest which would
    have accrued on such portion of the NIB Loan from the date on
    which such portion of the NIB Loan has become due and payable to
    the last day of the then current Interest Period applicable to
    such portion of the NIB Loan at a rate equal to LIBOR, in each
    case for such Interest Period;
    

		
	 	
    exceeds:
    

			
	 	(2)	
    the interest which NIB would
    be able to obtain if it were to place an amount equal to such
    portion of the NIB Loan on deposit with a leading bank in the
    London interbank market, for the period commencing on the date
    on which such portion of the NIB Loan has become due and payable
    and ending on the last day of the then current Interest Period.
    

		
	(b)	
    If any overdue amount is paid on a
date other than the last day of a Default Interest Period, the
Borrower shall pay to NIB on demand the amount, if any, by which:
    

			
	 	(1)	
    the interest which would
    have accrued on such overdue amount from the date of receipt of
    such overdue amount to the last day of the then current Default
    Interest Period at a rate equal to the rate specified in
    Section 3.07(a)(3) for such Default Interest Period;
    

		
	 	
    exceeds:
    

			
	 	(2)	
    the interest which NIB would be able to obtain if
    it were to place an amount equal to such overdue amount on
    deposit with a leading bank in the London interbank market, for
    the period commencing on the date of receipt of such overdue
    amount and ending on the last day of the then current Default
    Interest Period.
    

		
	(c)	
    A certificate of NIB as to any
amount payable under this Section 3.14 shall be final,
conclusive and binding on the Borrower unless shown by the
Borrower to the satisfaction of NIB to contain clerical error.
    

Section 3.15  Increased
Costs

The Borrower shall, from time to time on demand
of NIB, reimburse NIB for any net incremental costs to NIB of
making or maintaining, or committing to make, the NIB Loan which
result from the introduction of, or any change in, any
applicable law or any applicable guideline or policy (including
guidelines or policies which, if not having the force of law, are

 

customarily complied with by banks or
international financial institutions), or any change in the
interpretation or application thereof by any governmental or
regulatory authority charged with the administration thereof
subsequent to the date of this Agreement. A certificate of NIB
as to the amount of such net incremental costs shall be final,
conclusive and binding on the Borrower unless shown by the
Borrower to the satisfaction of NIB to contain clerical error.

Section 3.16  Illegality

Notwithstanding anything in this Agreement, if it
is or becomes unlawful in any applicable jurisdiction for NIB to
make, maintain or fund the NIB Loan, then:

		
	(1)	
    upon request by NIB, the Borrower shall, on the
    next Interest Payment Date or such earlier date as NIB may
    specify, prepay that portion of the principal amount of the NIB
    Loan which NIB notifies to the Borrower as being affected by
    such change, together with all accrued interest and other
    amounts payable thereon; and
    
	 
	(2)	
    upon notice from NIB, the right of the Borrower
    to Disbursement of any portion of the NIB Loan which NIB
    notifies to the Borrower as being affected by such change and
    which has not theretofore been disbursed shall terminate
    immediately.
    

Section 3.17  Loan
Account

NIB shall open and maintain on its books a Dollar
account in the Borrower’s name showing the Disbursements
and repayments thereof and the computation and payment of
interest, charges, commissions, fees and other amounts due and
sums paid hereunder in respect of the NIB Loan. In the absence
of manifest error, such accounts shall be final, conclusive and
binding on the Borrower as to the amount at any time due from
the Borrower.

ARTICLE IV — CONDITIONS
PRECEDENT

Section 4.01  Tranche I NIB
Loan Disbursement

The obligation of NIB to make the Disbursement of
the Tranche I NIB Loan shall be subject to the prior
fulfillment, in form and substance satisfactory to NIB, of the
following conditions precedent:

		
	(a)	
    Financing Agreements. NIB
shall have received duly executed and (where appropriate)
legalized originals of the following agreements:
    

			
	 	(1)	
    this Agreement;
    
	 
	 	(2)	
    the EBRD Loan Agreement;
    
	 
	 	(3)	
    the EDC Loan Agreement;
    
	 
	 	(4)	
    the Agency Agreement;
    
	 
	 	(5)	
    the Share Retention and Subordination Deed;
    
	 
	 	(6)	
    the Borrower Power of Attorney;
    

 

			
	 	(7)	
    the Shareholder Power of Attorney, executed by
    each Shareholder; and
    
	 
	 	(8)	
    the Security Sharing and Intercreditor Agreement.
    

		
	(b)	
    Other Agreements. NIB shall
have received copies, certified by an officer of the Borrower,
of the following agreements:
    

			
	 	(1)	
    the Licenses;
    
	 
	 	(2)	
    the Romtelecom Interconnection Agreement;
    
	 
	 	(3)	
    the Cooperation Agreement;
    
	 
	 	(4)	
    any Working Capital Facility Agreement currently
    in effect;
    
	 
	 	(5)	
    the Contract of Association;
    
	 
	 	(6)	
    the Orange Romania Interconnection Agreement;
    
	 
	 	(7)	
    the Hedging Agreements, if any; and
    
	 
	 	(8)	
    other agreements identified by NIB from the
    agreements listed on Schedule A hereto.
    

		
	(c)	
    Security. The Security
shall have been validly created and constitute a first ranking
security interest (subject only, where applicable, to the
Existing Security) in a manner satisfactory to NIB and NIB shall
have received duly executed originals of the following Security
Documents, together with any document, recording, filing,
notification, registration, notarization or other evidence
required, in the opinion of NIB, for the creation, validity,
perfection or priority of the Liens of NIB in or under such
Security Documents:
    

			
	 	(1)	
    the Security Agreement Over Movables;
    
	 
	 	(2)	
    the Insurance Assignment;
    
	 
	 	(3)	
    the Security Agreement Over Shares;
    
	 
	 	(4)	
    the Security Agreement Over Accounts;
    
	 
	 	(5)	
    the Assignment of Receivables; and
    
	 
	 	(6)	
    the Offshore Accounts Charge.
    

		
	(d)	
    Charters. NIB shall have
received certified copies of the Charters (and, if relevant,
certificates of registration and good standing) of the Borrower
and, at the request of NIB, any other parties to the Financing
Agreements, each as amended to date.
    

		
	(e)	
    Corporate Authorizations.
NIB shall have received certified copies of all corporate
(including, if required, shareholder) authorizations and
approvals necessary for the due execution, delivery and
performance of the Financing Agreements, and any other documents
in implementation thereof, by the Borrower, the Shareholders
and, at the request of NIB, any other parties thereto and for
the transactions contemplated
    

 

		
	 	
    thereby, including the authorizations of the
    persons signing the Financing Agreements to sign such documents
    and to bind the respective parties thereby.
    

		
	(f)	
    Specimen Signatures. NIB
shall have received:
    

			
	 	(1)	
    a certificate of incumbency and authority of the
    Borrower substantially in the form of Exhibit B; and
    
	 
	 	(2)	
    a certificate of an appropriate officer of each
    Shareholder and, at the request of NIB, any other party to the
    Financing Agreements, certifying the specimen signature of each
    person authorised to sign, on behalf of such party, the
    Financing Agreements to be entered into and performed by such
    party or, if agreed by NIB, in place of such certificate, a copy
    of the power of attorney authorising each person to sign, on
    behalf of such Shareholder or other party, the Financing
    Agreements to be entered into and performed by such party.
    

		
	(g)	
    Governmental and Other
Approvals. NIB shall have received copies, certified by an
officer of the Borrower, of all governmental, creditors’
and other licenses, approvals, consents, filings and
registrations necessary for the execution, delivery and
performance of the Financing Agreements by the Borrower, the
Shareholders and, at the request of NIB, any other parties
thereto and for the transactions contemplated thereby,
including, without limitation:
    

			
	 	(1)	
    the borrowing by the Borrower under the Senior
    Loan Agreements;
    
	 
	 	(2)	
    the creation of the Security;
    
	 
	 	(3)	
    the carrying out of the Project;
    
	 
	 	(4)	
    the remittance to NIB in the Loan Currency of all
    monies payable in respect of the Financing Agreements; and
    
	 
	 	(5)	
    the carrying on of the business of the Borrower
    as it is presently carried on and as it is contemplated to be
    carried on.
    

		
	(h)	
    Insurance. NIB shall have
received original insurance certificates from the
Borrower’s insurer or insurance broker showing that all
insurance policies and endorsements required pursuant to
Section 5.04 are in full force and effect.
    

		
	(i)	
    Auditors Letter. NIB shall
have received a copy of a letter to the Auditors from the
Borrower substantially in the form of Exhibit C.
    

		
	(j)	
    Process Agent Appointments.
NIB shall have received written confirmation from the agents
for service of process appointed by the Borrower, each of the
Shareholders, TIWC, ClearWave’s Majority Shareholder,
ClearWave and Vodafone Technical pursuant to the Financing
Agreements of their acceptances of such appointments.
    

		
	(k)	
    Legal Opinions. NIB shall
have received the following legal opinions, addressed to NIB and
regarding such matters incident to the transactions contemplated
by the Financing Agreements and Project Agreements as NIB
reasonably requests:
    

 

			
	 	(1)	
    the opinion of Nestor Nestor Diculescu Kingston
    Petersen, special Romanian counsel to the Borrower;
    
	 
	 	(2)	
    the opinion of Loyens & Loeff, special Dutch
    counsel to TIWC, ClearWave, ClearWave Holdings and Vodafone
    Europe;
    
	 
	 	(3)	
    the opinion of Fasken, Martineau DuMoulin LLP,
    special Canadian counsel to ClearWave’s Majority
    Shareholder;
    
	 
	 	(4)	
    the opinion of Stoica & Associates, special
    Romanian counsel to the Senior Lenders;
    
	 
	 	(5)	
    the opinion of McCarthy Tétrault, special
    English counsel to the Senior Lenders;
    
	 
	 	(6)	
    the opinion of Antis Triantafyllides & Sons,
    special Cyprus counsel to the Borrower;
    
	 
	 	(7)	
    the opinion of Baker McKenzie, special Dutch
    counsel to Deraso Holding B.V.
    

		
	(l)	
    Fee Letter. EBRD and NIB
shall have entered into a letter agreement with respect to the
fees payable to NIB in connection with the NIB Loan.
    

		
	(m)	
    Financial Plan. NIB shall have
received the Base Case Financial Forecast and a certificate of
an Authorised Signatory of the Borrower approving such Base Case
Financial Forecast in form and substance satisfactory to NIB.
    

		
	(n)	
    Use of Proceeds. The
proceeds of such Disbursement shall be needed and used by the
Borrower solely for the purposes identified in
Section 3.02(a) and NIB shall have received such evidence
as to the proposed utilization of the proceeds of such
Disbursement as NIB reasonably requests.
    

		
	(o)	
    Disbursement Pro Rata. NIB
shall not be obligated to make the Tranche I NIB Loan
Disbursement in any amount other than an amount such that on the
date of such Disbursement the respective aggregate amounts
disbursed or to be disbursed on such date under the Tranche I
EBRD Loan, the Tranche I EDC Loan and the Tranche I NIB Loan,
shall be in the following proportions: 230:35:35.
    

		
	(p)	
    Conditional Discharges. The
Conditional Discharge Escrow Agent shall have received the
Conditional Discharge Escrow Instructions and the following
conditional discharge instrument (the “Conditional
Discharge”) duly executed by all parties thereto (other
than by EBRD, which will execute the Conditional Discharge at
the time and in the manner specified in the Conditional
Discharge Escrow Instructions), to be held by the Conditional
Discharge Escrow Agent and to be irrevocably released from
escrow immediately upon delivery to the Conditional Discharge
Escrow Agent of the Existing Loans Repayment Confirmations and
the dating of the Conditional Discharge by the Conditional
Discharge Escrow Agent:
    

		
	 	
    a discharge and release in respect of the
    Existing Security under, inter alia, the following
    instruments (each as defined in the Existing NIB Loan Agreement):
    

 

			
	 	(A)	
    Enterprise Mortgage;
    
	 
	 	(B)	
    Share Pledge (including without
    limitation the Guarantee and Share Pledge Agreement dated
    January 28, 1999, July 24, 2000 and September 28,
    2001);
    
	 
	 	(C)	
    Accounts Agreement;
    
	 
	 	(D)	
    Borrower’s Negative Covenant
    Agreement; and
    
	 
	 	(E)	
    All Shareholder Negative
    Covenant Agreements,
    
	 
	 	(F)	
    Insurance Assignment; and
    
	 
	 	(G)	
    Offshore Accounts Pledge
    

		
	 	
    executed by, inter alia, the Borrower, the
    Senior Lenders and the EKN Lenders, all in form and substance
    satisfactory to NIB.
    

Section 4.02  First Tranche
II NIB Loan Disbursement

The obligation of NIB to make the first
Disbursement of the Tranche II NIB Loan shall be subject to the
prior fulfilment, in form and substance satisfactory to NIB, of
the following conditions precedent:

		
	(a)	
    Tranche I NIB Loan. NIB
shall have made the Disbursement of the entire Tranche I NIB
Loan and all conditions precedent set forth in Section 4.01
shall be satisfied.
    

		
	(b)	
    Existing Loans Indebtedness and
Existing Security.
    

			
	 	(1)	
    The Existing Loans Indebtedness shall have been
    repaid in full and NIB shall have received the Existing Loans
    Repayment Confirmations.
    
	 
	 	(2)	
    The Conditional Discharge shall have become fully
    effective and unconditional and shall have been released from
    escrow and delivered to NIB, and the Existing Security shall
    have been fully released and discharged, and all registrations
    and other steps required to be made in connection with such
    release and discharge (including without limitation all
    applicable registrations in the Electronic Archive, the Trade
    Register, the Shareholders Register of the Borrower and any
    other applicable registries) shall have been made in a manner
    satisfactory to NIB such that the Security granted to secure the
    Senior Loan Agreements shall have become first ranking in all
    respects in a manner satisfactory to NIB.
    

		
	(c)	
    Legal Opinions. NIB shall
have received the following legal opinions, addressed to NIB and
regarding such matters with respect to the discharge of the
Existing Security, and the ranking of the Security, as NIB
reasonably requests:
    

			
	 	(1)	
    the opinion of Nestor Nestor Diculescu Kingston
    Petersen, special Romanian counsel to the Borrower; and
    

 

			
	 	(2)	
    the opinion of Stoica & Associates, special
    Romanian counsel to the Senior Lenders.
    

Section 4.03  All
Disbursements

The obligation of NIB to make any Disbursement
shall also be subject to the fulfillment, in form and substance
satisfactory to NIB, of the conditions that, on the date of the
Borrower’s application for such Disbursement and on the
date of such Disbursement:

		
	(a)	
    Continuing Validity of
Documents. All agreements, documents and instruments
delivered to NIB pursuant to Section 4.01 and/or
Section 4.02, as applicable, shall be in full force and
effect and unconditional (except for this Agreement having
become unconditional, if that is a condition of any such
agreement, and except to any extent that such agreements,
documents and instruments have been amended or replaced by other
agreements, documents or instruments, in each case acceptable to
NIB).
    
	 
	(b)	
    Representations and Warranties.
The representations and warranties made or confirmed by the
Borrower in the Financing Agreements and Project Agreements
shall be true on and as of such dates with the same effect as
though such representations and warranties had been made on and
as of such dates. To any extent that such representations and
warranties cannot be confirmed by the Borrower as being true as
of such dates, the Borrower shall provide the further
information necessary to make the representations and warranties
true as of such dates in light of such further information, and
such further information shall be in form and content acceptable
to NIB.
    
	 
	(c)	
    No Default. No Event of
Default or Potential Event of Default shall have occurred and be
continuing or shall, in the reasonable opinion of NIB, result
from such Disbursement or be imminent and the Borrower shall
not, as a result of such Disbursement, be in violation of its
Charter or any provision contained in any material agreement or
instrument to which the Borrower is a party (including this
Agreement) or by which the Borrower is bound, or any law
applicable to the Borrower.
    
	 
	(d)	
    No Material Adverse Change.
Nothing shall have occurred which, in the reasonable opinion
of NIB, might have a material adverse effect on the Project, the
Borrower’s business, operations or financial condition or
the ability of the Borrower to perform any of its obligations
under any Financing Agreement or Project Agreement.
    
	 
	(e)	
    Use of Proceeds. In respect
of any Disbursement of the Tranche II NIB Loan, the proceeds of
such Disbursement shall be needed and used by the Borrower
solely for the purposes of Capital Expenditures incurred or paid
for after the date of this Agreement or for payment of the UMTS
License Costs in connection with the Project and NIB shall have
received such evidence as to the proposed utilisation of the
proceeds of such Disbursement and the utilisation of the
proceeds of any prior Disbursement as NIB reasonably requests.
    
	 
	(f)	
    Disbursement Application.
NIB shall have received an original of the Borrower’s
timely application for such disbursement substantially in the
form of Exhibit A.
    
	 
	(g)	
    Disbursements Pro Rata. NIB
shall not be obligated to make a Disbursement under the Tranche
II NIB Loan other than in an amount such that on the date of such
    

 

		
	 	
    Disbursement the respective aggregate amounts
    disbursed and to be disbursed on such date under the Tranche II
    EBRD Loan, the Tranche II EDC Loan and the Tranche II NIB Loan
    shall be in the following proportions: 230:35:35.
    

		
	(h)	
    Failure of EBRD/ EDC
Disbursement. In the event that any Disbursement is made by
NIB and corresponding pro rata amounts are not so
disbursed pursuant to subsection 4.03(g) by EBRD or EDC, then
the Borrower shall be obligated to remit to NIB the amount of
such Disbursement immediately upon being notified by NIB in such
regard, along with any interest accruing thereon during the
period that the Borrower held such amount.
    
	 
	(i)	
    Fees and Expenses. All fees
and expenses due and payable pursuant to Sections 3.05 and
5.12 and the fee letter agreement identified in Section 4.01(l)
at the time of the Disbursement shall have been paid in full.
    
	 
	(j)	
    No Objection Letter. With
respect to any Disbursement, if the aggregate amount of such
Disbursement and all prior Disbursements exceeds $30,000,000,
NIB shall have received a “no objection letter” from
the Ministry of Finance of Romania.
    

ARTICLE V — AFFIRMATIVE
COVENANTS

Unless NIB otherwise agrees in writing:

Section 5.01  Project
Implementation and Use of Proceeds

The Borrower shall carry out the Project in
accordance with the Licenses and cause the proceeds of the
Senior Loans to be applied exclusively in the manner provided in
Sections 3.02, 4.01(n) and 4.03(e).

Section 5.02  Maintenance
and Continuity of Business and Compliance with
Obligations

The Borrower shall maintain its corporate
existence in compliance with all applicable laws. The Borrower
shall conduct its business with due diligence and efficiency, in
accordance with sound engineering, financial and business
practices and in compliance with all applicable laws, and shall
comply with all agreements to which it is a party or by which it
or any of its properties or assets is bound.

Section 5.03  Environment,
Health and Safety

The Borrower shall conduct its business with due
regard to the environment, health and safety. The Borrower shall
carry out the Project in accordance with environmental standards
in effect from time to time in Romania and with environmental
standards existing in the European Union on the date hereof (or,
in the event that such standards do not exist in the European
Union, as set forth in the World Bank’s Environmental
Guidelines or any publication of the World Bank replacing its
Environmental Guidelines).

Section 5.04  Insurance

The Borrower shall maintain, at a minimum,
liability, property damage, business interruption,
contractor’s all-risks and public liability insurance
against loss, damage and third party liability in a manner and
with insurers satisfactory to NIB. NIB shall be named, in

 

accordance with the Insurance Assignment, as loss
payee (except with respect to third party liability insurance)
and additional insured under the relevant insurance policies and
the interests of NIB shall be noted thereon.

Section 5.05  Accounting

		
	(a)	
    The Borrower shall maintain an
accounting and cost control system and management information
system satisfactory to NIB.
    
	 
	(b)	
    The Borrower shall maintain books
of account and other records adequate to present a true and fair
view of the financial condition of the Borrower and the results
of its operations in conformity with Generally Accepted
Accounting Principles and RAS.
    
	 
	(c)	
    
The Borrower shall maintain as its
auditors a firm of independent accountants acceptable to NIB.
The Borrower shall authorise, by a letter substantially in the
form of Exhibit C, the Auditors to communicate directly
with NIB at any time regarding the Borrower’s accounts and
operations.
    

Section 5.06  Continuing
Governmental and Other Approvals

The Borrower shall obtain and maintain in force
(or, where appropriate, renew) all governmental, corporate,
creditors’, shareholders’ and other necessary
licenses, approvals, consents, filings, permits, rulings and
registrations required for the purposes described in
Sections 4.01(e) and 4.01(g). The Borrower shall perform
and observe all the conditions and restrictions contained in, or
imposed on the Borrower by, such licenses, approvals, consents,
filings and registrations.

Section 5.07  Security

		
	(a)	
    General. The Borrower shall
create, perfect, maintain and, as appropriate, renew the
Security in a manner satisfactory to NIB.
    
	 
	(b)	
    
Existing Security. The
Borrower shall, immediately upon receipt of the Existing Loans
Repayment Confirmations and a copy of the executed Conditional
Discharge, cooperate with, and assist, NIB and its counsel in
discharging and releasing the Existing Security in a manner
satisfactory to NIB, such that the Security shall become first
ranking in priority and the Borrower shall take such other steps
and actions as may be necessary or advisable to ensure that the
Security becomes first ranking in a manner satisfactory to NIB.
    
	 
	(c)	
    
Immovables. Each time that
the Borrower acquires immovable tangible assets, in one or in a
series of related transactions, having an aggregate value in
excess of $3,000,000, the Borrower shall immediately notify NIB
and shall (i) as soon as possible but in any event within
thirty days, provide to NIB an Immovables Hypothec with respect
to such immovable tangible assets shall apply for registration
of such Immovables Hypothec in the appropriate registers (and
deliver to NIB such register’s acknowledgment of such
application being made) and (ii) shall take all steps to
ensure such registration takes place as soon as possible, all in
order to provide in favour of the Secured Parties a first
priority security interest with respect to such immovable
tangible assets.
    

 

		
	(d)	
    Movables. Each six months
after the date hereof, the Borrower shall provide to NIB an
updated current list of all of the Borrower’s movable
assets, tangible and intangible, including lists of Material
Agreements in compliance with Section 4.1(e) of the
Security Agreement Over Movables, and shall forthwith take any
other steps and actions necessary or advisable to ensure that
the Secured Parties have a first ranking security interest
(subject only to Permitted Liens) in respect of all of the
Borrower’s movable assets, tangible and intangible present
and future, under the Security Agreement Over Movables in
accordance with all requirements of Romanian law.
    
	 
	(e)	
    
Shares. The Borrower shall
take any action required of it in order that at all times 100%
of the shares (and votes associated therewith) of the Borrower
shall be effectively subject to the Security Agreement Over
Shares, subject to Section 4.05 of the Share Retention and
Subordination Deed and Section 4.4 of the Security
Agreement Over Shares. The Borrower shall sign and register such
documents and take such other steps as are necessary including
without limitation complying with its obligations under the
Security Agreement Over Shares to update the list of shares in
respect of which a security interest is granted pursuant to the
Security Agreement Over Shares and to ensure that the Security
Agreement Over Shares applies in respect of any shares of the
Borrower held by the Shareholders from time to time as necessary
to comply with the foregoing requirement that at all times 100%
of the total shares (and votes associated therewith) of the
Borrower remain subject to the Security Agreement Over Shares
subject to Section 4.05 of the Share Retention and
Subordination Deed and Section 4.4 of the Security
Agreement Over Shares.
    
	 
	(f)	
    
Accounts. The Borrower
shall ensure that at all times all payments made to the Borrower
(including under any Project Agreement) are deposited in
Borrower Accounts in respect of which the Secured Parties and
Working Capital Lenders have a pledge or other security interest
pursuant to the Security Agreement Over Accounts or, in respect
of Borrower Accounts held in banks outside of Romania, such
other Security Document as may be in form and substance
satisfactory to NIB.
    
	 
	(g)	
    Roaming Revenues. To the
extent the Borrower has any Lien in respect of any Deposit (as
defined in the Offshore Accounts Charge), whether pursuant to
the Cibernet Financial Net Settlement Regulations dated
March 14, 1997 or otherwise, such Lien in favour of the
Borrower shall in all respects be subordinate and postponed to
the Security and the Borrower will take no action in respect of
such Lien except any action specifically requested by the Senior
Lenders.
    
	 
	(h)	
    
Assignment of Subordinated
Debt. If the Borrower delivers a notice to NIB pursuant to
Section 3.09(f) in respect of any Permitted High Yield Back
to Back Debt, and if the aggregate principal amount of all
Permitted High Yield Back to Back Debt (including the Permitted
High Yield Back to Back Debt identified in such notice) exceeds
$150,000,000, and if
    

			
	 	(i)	
    the Borrower specifies in such notice that an
    Assignment of Subordinated Debt will be provided to NIB in
    respect of all of the Borrower’s Permitted High Yield Back
    to Back Debt, or
    
	 
	 	(ii)	
    the Borrower specifies in such notice that such
    Assignment of Subordinated Debt will not be provided to NIB or
    does not specify in such notice whether
    

 

		
	 	
    such Assignment of Subordinated Debt will be
    provided to NIB, NIB requires in a notice delivered under
    Section 3.09(f) that the Borrower prepay in full the NIB Loan
    and the Borrower fails to make such prepayment contemporaneously
    with incurring the Permitted High Yield Back to Back Debt,
    

		
	 	
    then the Borrower shall ensure that NIB is
    provided with an Assignment of Subordinated Debt in respect of
    all of the Borrower’s Permitted High Yield Back to Back
    Debt prior to or contemporaneously with, and as a condition to,
    the Borrower incurring the Permitted High Yield Back to Back
    Debt identified in the notice delivered by the Borrower under
    Section 3.09(f).
    

		
	(i)	
    Acknowledgement and Non-disturbance Agreement.
    The Borrower shall ensure that the
    Acknowledgement and Non-disturbance Agreement is entered into
    and a fully executed original thereof is delivered to NIB as
    soon as practicable and in any event within 30 days of the
    date hereof.
    

Section 5.08  Taxes

		
	(a)	
    The Borrower shall pay when due all of its taxes,
    rates, charges and assessments, including without limitation any
    taxes, rates, charges and assessments against any of its
    properties, other than taxes, rates, charges or assessments
    which are being contested in good faith and by proper
    proceedings and as to which adequate reserves have been set
    aside for the payment thereof. The Borrower shall make timely
    filings of all tax returns and governmental reports required to
    be filed or submitted under any applicable law.
    

		
	(b)	
    The Borrower shall pay all taxes (including stamp
    taxes), duties, fees or other charges payable on, or in
    connection with, the execution, issue, delivery, registration,
    legalisation or notarization of any Financing Agreement, any
    Project Agreement or any other document related to this
    Agreement. Upon notice from NIB, the Borrower shall pay to NIB,
    or reimburse NIB for, an amount equal to any such taxes, duties,
    fees or other charges levied on or paid by NIB.
    

Section 5.09  Project
Agreements

The Borrower shall maintain all Project
Agreements to which the Borrower is a party in full force and
effect without material modification and perform its obligations
under, and not commit any breach of or default under, any such
Project Agreement. The Borrower shall promptly upon any proposed
amendment of a Project Agreement, provide a copy of such
amendment to NIB.

Section 5.10  Financial
Ratios

		
	(a)	
    The Borrower shall ensure that its financial
    condition shall be such that:
    

			
	 	(i)	
    Total Financial Debt to EBITDA
    Ratio Subject to Section 5.10(b), the
    Total Financial Debt to EBITDA Ratio shall be less than or equal
    to 2.00.
    

			
	 	(ii)	
    Senior Debt to EBITDA
    Ratio Subject to Section 5.10(b),
    from the date hereof up to and including 31 December 2004, the
    Senior Debt to EBITDA
    

 

		
	 	
    Ratio shall be less than or equal to 1.50 and on
    each Quarter Date, after 31 December 2004 the Senior Debt to
    EBITDA Ratio shall be less than or equal to 1.25;
    

			
	 	(iii)	
    Total Financial Debt Service Coverage
    Ratio Subject to Section 5.10(b),
    the Total Financial Debt Service Coverage Ratio shall be equal
    to or greater than 1.25;
    
	 
	 	(iv)	
    Senior Debt Service Coverage
    Ratio Subject to Section 5.10(b), the
    Senior Debt Service Coverage Ratio shall be equal to or greater
    than 1.40; and
    

			
	 	(v)	
    Total Financial Debt to Equity
    Ratio Subject to Section 5.10(b), from
    the date hereof to and including 31 December 2003, the Total
    Financial Debt to Equity Ratio shall be equal to or less than
    2.00 and on each Quarter Date after 31 December 2003, the Total
    Financial Debt to Equity Ratio shall be equal to or less than
    1.75;
    

		
	 	
    provided that the Borrower may cure any actual or
    anticipated breach of its covenants under this
    Section 5.10(a) by providing additional shareholder funding
    in the form of equity or Permitted Quasi Equity (such funding
    referred to as “Curative Equity”), which Curative
    Equity must be contributed prior to or within 30 days after
    the date of the breach, provided that such cure shall be used:
    

			
	 	(A)	
    in aggregate, not more than four times;
    
	 
	 	(B)	
    not more than two times in any calendar year; and
    
	 
	 	(C)	
    not in each of any two consecutive Quarterly
    Periods.
    

		
	 	
    For purposes of determining compliance with this
    Section 5.10(a), the amount of any Curative Equity
    permitted hereunder shall be included as a positive number in
    the determination of EBITDA as of the date on which such
    Curative Equity is contributed.
    

		
	(b)	
    Financial Testing

		
	 	
    The financial covenants set out in this
    Section 5.10 shall be tested on each Quarter Date by
    reference to the Financial Statements as of such date and each
    Compliance Certificate delivered pursuant to Section 5.13.
    The period of calculation in respect of which each of the ratios
    identified in paragraphs (a)(i) to (iv) above is to be
    calculated shall be each Quarterly Period and the immediately
    preceding three Quarterly Periods.
    

		
	(c)	
    Accounting Terms

		
	 	
    All accounting expressions which are not
    otherwise defined herein shall be construed in accordance with
    Generally Accepted Accounting Principles.
    

Section 5.11  Further
Documents

The Borrower shall execute all such other
documents and instruments and do all such other acts and things
as NIB may reasonably determine are necessary or desirable to
give effect to the provisions of the Financing Agreements and
the Project Agreements and to cause the

 

Financing Agreements to be duly registered,
legalised, notarised and stamped in any applicable jurisdiction.
Without limiting the generality of the foregoing, the Borrower
shall promptly provide to NIB certified translations into
Romanian or into English, as applicable, of any such documents
and instruments, or of any of the Financing Agreements, as
requested by NIB from time to time. The Borrower hereby
irrevocably appoints and constitutes NIB as the Borrower’s
true and lawful attorney with right of substitution (in the name
of the Borrower or otherwise) to execute such documents and
instruments and to do such acts and things (if the Borrower
fails to do so within such reasonable period of time as may be
specified by NIB) in the name of and on behalf of the Borrower
in order to carry out the provisions hereof.

Section 5.12  Costs and
Expenses

		
	(a)	
    The Borrower shall, whether or not any
    Disbursement is made, pay to NIB or as NIB may direct, within
    30 days of NIB furnishing to the Borrower the invoice
    therefor, all reasonable out-of-pocket costs and expenses
    (including, without limitation, travel expenses and the fees and
    expenses of outside counsel to the Senior Lenders and the Agent
    and all other financial, accounting, engineering, environmental,
    insurance and other consulting fees and expenses) incurred by
    the Senior Lenders and the Agent in connection with the
    following three matters:
    

			
	 	(1)	
    the assessment, preparation, negotiation and
    arrangement of the NIB Loan by NIB;
    
	 
	 	(2)	
    the preparation, review, negotiation, execution
    and, where appropriate, registration, legalization and
    notarization, as applicable, of the Financing Agreements, the
    Project Agreements, the other Material Agreements, and the
    Security and any other documents related thereto; and
    
	 
	 	(3)	
    the giving of any legal opinions hereunder.
    

		
	(b)	
    In addition, the Borrower shall pay to NIB or as
    NIB may direct, on demand, all further fees, costs and expenses
    (including, without limitation, legal fees and expenses)
    incurred by NIB (in each case as may be set forth in an invoice
    along with any supporting documentation):
    

			
	 	(1)	
    in the administration of the Financing Agreements;
    
	 
	 	(2)	
    in the determination of whether there has
    occurred an Event of Default or Potential Event of Default;
    
	 
	 	(3)	
    in respect of the preservation or enforcement of
    any of its rights under any Financing Agreement and the
    collection of any amount owing to NIB; and
    
	 
	 	(4)	
    in connection with the assessment, preparation,
    review, negotiation, execution and, where appropriate,
    registration and notarization of any amendment to or waiver of
    any Financing Agreement, any Project Agreement, any other
    Material Agreement, or any other document related thereto.
    

 

Section 5.13  Furnishing of
Information

		
	(a)	
    As soon as available but, in any event, within
    45 days after the end of each Quarterly Period of each
    Financial Year, the Borrower shall furnish to NIB:
    

			
	 	(1)	
    two copies of the Borrower’s complete
    unaudited Financial Statements for such Quarterly Period
    prepared in Dollars in accordance with Generally Accepted
    Accounting Principles and in Lei in accordance with RAS and in
    each case in a form satisfactory to NIB and, if requested by
    NIB, certified by an Authorized Signatory of the Borrower;
    
	 
	 	(2)	
    a management discussion and analysis of results
    for such Quarterly Period, including a report on any factors
    materially and adversely affecting or which might materially and
    adversely affect the Borrower’s business, operations or
    financial condition or a statement that there are no such
    factors;
    
	 
	 	(3)	
    a report, in a form satisfactory to NIB, acting
    reasonably, on the implementation and progress of the Project,
    including;
    

			
	 	(i)	
    at all times from and after the date on which the
    Borrower obtains the UMTS License and until such time as the
    Borrower achieves UMTS License Compliance, a statement regarding
    the progress of the Borrower in meeting the conditions of the
    UMTS License (including without limitation, the coverage of the
    services provided by the Borrower’s UMTS Network and the
    coverage requirements imposed by the Ministry, if any), and
    identifying any cases of non-compliance with the UMTS License
    and any fines or penalties paid or imposed in respect thereof;
    

			
	 	(ii)	
    the mark-to-market valuation of all hedging and
    similar derivative transactions outstanding on the last day of
    such Quarterly Period;
    

			
	 	(iii)	
    a list of all hedging and similar derivative
    transactions outstanding as of the last day of such Quarterly
    Period with a notional amount whose USD Equivalent Amount is at
    least $20,000,000 entered into by the Borrower in such Quarterly
    Period;
    

			
	 	(4)	
    a statement of all transactions, including
    without limitation in respect of any Subordinated Debt, and
    transfers between the Borrower and each of its Affiliates or
    Shareholders (or Affiliates thereof) during such Quarterly
    Period with a value in excess of $100,000 or the equivalent
    thereof in other currencies at then current rates of exchange or
    a statement that there were no such transactions; and
    
	 
	 	(5)	
    a Compliance Certificate, signed by an Authorized
    Signatory of the Borrower, certifying that the Borrower was in
    compliance with the
    

 

			
	 		
    financial covenants contained in Section 5.10 as
    of the end of such Quarterly Period or, as the case may be,
    detailing any non-compliance.
    

		
	(b)	
    As soon as available but, in any event, within
    120 days after the end of each Financial Year, the Borrower
    shall furnish to NIB:
    

			
	 	(1)	
    two copies of the Borrower’s complete
    Financial Statements for such Financial Year, together with a
    report of the Auditors thereon, as prepared in Dollars in
    accordance with Generally Accepted Accounting Principles in a
    form satisfactory to NIB;
    
	 
	 	(2)	
    two copies of the Financial Statements for such
    Financial Year prepared in Lei in accordance with RAS, with the
    censors report thereon, in a form satisfactory to NIB;
    
	 
	 	(3)	
    a management letter from the Auditors commenting
    on, among other matters, the adequacy of the Borrower’s
    financial control procedures and accounting systems;
    
	 
	 	(4)	
    a Compliance Certificate, signed by the Auditors,
    certifying that the Borrower was in compliance with the
    financial covenants contained in Section 5.10 as of the end
    of such Financial Year or, as the case may be, detailing any
    non-compliance; and
    
	 
	 	(5)	
    a report, in form and scope satisfactory to NIB,
    on environmental, health and safety issues arising in relation
    to the Borrower and the Project during such Financial Year.
    

		
	(c)	
    Within 30 days after the effective date of
    any new or renewed liability, property damage, business
    interruption, contractor’s all-risks and public liability
    insurance policy, the Borrower shall furnish to NIB an original
    certificate from the Borrower’s insurer or insurance broker
    indicating the properties insured, amounts and risks covered,
    names of the loss payees (including NIB), beneficiaries and
    assignees, name of the insurer and any special features of the
    new or renewed insurance policy.
    

		
	(d)	
    Within 9 days after the end of each calendar
    month, the Borrower shall furnish to NIB monthly management
    accounts of the Borrower in the form to be agreed between the
    Borrower and NIB, which shall include Financial Statements and
    information regarding number of subscribers to the services
    provided by the Borrower’s Network minutes of use thereof
    and average revenue per user.
    

		
	(e)	
    The Borrower shall provide to NIB at least
    30 days prior to incurring any Subordinated Debt notice of
    such Subordinated Debt, identifying the person providing such
    Subordinated Debt, the principal amount of such Subordinated
    Debt and the principal terms thereof.
    

		
	(f)	
    The Borrower shall promptly inform NIB of:
    

			
	 	(1)	
    any proposed material change in the nature or
    scope of the Project or the business or operations of the
    Borrower;
    

 

			
	 	(2)	
    any claim made by the Borrower under any
    insurance policy in an amount in excess of $1 million;
    
	 
	 	(3)	
    any event or condition (including, without
    limitation, any pending or threatened litigation, arbitration or
    administrative proceeding and any damage to or destruction of
    Project facilities) which might have a material adverse effect
    on the Project, the Borrower’s business, operations or
    financial condition or the ability of the Borrower to perform
    any of its obligations under any Financing Agreement or Project
    Agreement; and
    
	 
	 	(4)	
    any communication by or with the Borrower or any
    Controlling Shareholder with or from the Ministry that is
    material in respect of each License, UMTS License Compliance and
    other compliance with the conditions of each License.
    

		
	(g)	
    Within 15 days of receipt of any
    communication from the Ministry that is material and adverse in
    respect of UMTS License Compliance, the Borrower shall provide
    to NIB a detailed compliance remediation plan for the resolution
    of any compliance related issues identified in such
    communication, which plans shall include, inter alia, an
    identification of the UMTS License Compliance deficiencies, and
    a description of actions required to remedy the same, including
    detailed geographical and financial breakdowns; such compliance
    remediation plans shall be updated on a monthly basis within
    15 days after the end of each month.
    
	 
	(h)	
    Immediately upon receipt by the Borrower of a
    certificate or other communication from the Ministry evidencing
    UMTS License Compliance, the Borrower shall furnish a copy of
    such certificate or communication to NIB.
    

		
	(i)	
    Immediately upon the occurrence of any Event of
    Default or Potential Event of Default, the Borrower shall give
    NIB notice thereof specifying the nature of such Event of
    Default or Potential Event of Default and any steps the Borrower
    is taking to remedy the same.
    
	 
	(j)	
    Immediately upon the occurrence of any incident
    or accident relating to the Borrower or the Project likely to
    have a material adverse effect on the environment, health or
    safety, the Borrower shall give NIB notice thereof specifying
    the nature of such incident or accident and any steps the
    Borrower is taking to remedy the same. Without limiting the
    generality of the foregoing, an incident or accident is likely
    to have a material adverse effect on the environment, health or
    safety if any applicable law requires notification of such
    incident or accident to any governmental authority, such
    incident or accident involves fatality or multiple serious
    injuries requiring hospitalization or such incident or accident
    has become public knowledge whether through media coverage or
    otherwise.
    

		
	(k)	
    The Borrower shall furnish to NIB with respect to
    each Financial Year the Borrower’s proposed one-year budget
    including capital expenditure plan within 30 days of its
    approval by the board of directors of the Borrower and in any
    event within 30 days after the end of each Financial Year.
    

		
	(l)	
    The Borrower shall,
    

 

			
	 	(1)	
    within 90 days after the end of each
    Financial Year, provide to NIB a certificate of an Authorised
    Signatory confirming (A) the amount of Distributions which
    the Borrower was permitted to make in accordance with Romanian
    law in respect of such Financial Year and (B) the Deferred
    Distribution Amount applicable in respect of the next Financial
    Year; and
    
	 
	 	(2)	
    within 9 days of each Quarter Date, provide
    to NIB a statement confirming the calculation of the amount
    calculated pursuant to Section 6.01(a)(3)(C) in respect of
    the Distribution Test Period ending on such Quarter Date.
    

		
	(m)	
    As soon as available but, in any event, within
    9 days of each Quarter Date, the Borrower shall provide to
    NIB a statement of its Cash and Cash Equivalents and calculation
    of Excess Cash Flow and Available Cash Balance as at such
    Quarter Date and the proposed distribution thereof in accordance
    with the terms of this Agreement.
    

		
	(n)	
    The Borrower shall furnish promptly to NIB such
    other information as NIB may from time to time reasonably
    request. The Borrower shall permit representatives of NIB
    (including, without limitation, any consultants engaged by NIB)
    to visit the head office of the Borrower during normal business
    hours, with prior notice, or any of the other premises where the
    business of the Borrower is conducted or where the
    Borrower’s Network is located and to have access to the
    books of account and records of the Borrower.
    

Section 5.14  Procurement

The Borrower shall use procurement methods which
ensure a sound selection of goods and services at fair market
value and which ensure that the Borrower is making its capital
investments in a cost effective manner.

Section 5.15  License
Compliance

		
	(a)	
    The Borrower shall be at all times in full
    compliance with all terms and conditions of the GSM License.
    

		
	(b)	
    The Borrower shall, at all times after obtaining
    the UMTS License, achieve and maintain UMTS License Compliance.
    

Section 5.16  Repayment of
Existing Loans Indebtedness; Conditional
Discharges

The Borrower shall take all steps and actions to
ensure that the Existing Loans Indebtedness is repaid on the
date of first Disbursement of the Tranche I NIB Loan hereunder,
and that simultaneously with such repayment, the Existing Loans
Repayment Confirmations are delivered to the Conditional
Discharge Escrow Agent and the Conditional Discharge is released
from escrow.

ARTICLE VI — NEGATIVE
COVENANTS

Unless NIB otherwise agrees in writing:

 

Section 6.01  Distributions

		
	(a)	
    Except as expressly provided herein, the Borrower
    shall not pay any dividend, or make any distribution on its
    share capital, or purchase, redeem or otherwise acquire any
    shares of capital of the Borrower or any option over the same,
    or make any payment of principal or interest on any Permitted
    Quasi Equity (any such action referred to as a
    “Distribution”). Notwithstanding the foregoing, the
    Borrower may make a Distribution (other than a principal payment
    on Permitted Quasi Equity) but only provided that:
    

			
	 	(1)	
    at the time of making such Distribution no Event
    of Default or Potential Event of Default has occurred and is
    continuing, and no Event of Default or Potential Event of
    Default shall occur immediately following such Distribution;
    
	 
	 	(2)	
    on the date of such Distribution and immediately
    thereafter the Borrower shall be in full compliance with the
    covenants set out in Section 5.10(a), provided that
    notwithstanding the proviso to Section 5.10(a), for
    purposes of this Section 6.01(a)(2) Curative Equity shall
    not be taken into account in determining compliance with
    Section 5.10(a);
    
	 
	 	(3)	
    Distributions shall not, at any time, exceed in
    aggregate the sum of:
    

			
	 	(A)	
    the lesser of
    

			
	 	(x)	
    Excess Cash Flow (calculated by reference to the
    four consecutive and complete Quarterly Periods ending on the
    last day of the Quarterly Period immediately preceding the date
    on which the Distribution is to take place, (such period is
    referred to as the “Distribution Test Period”)), less
    

			
	 	(i)	
    the aggregate amount of all mandatory prepayments
    paid or payable pursuant to Section 3.09(d) on the four
    (4)Excess Cash Mandatory Prepayment Dates occurring on or prior
    to the date on which the Distribution is to take place, and
    

			
	 	(ii)	
    the aggregate amount of Distributions out of
    Excess Cash Flow made within the 3 consecutive and complete
    Quarterly Periods ending on the last day of the Quarterly Period
    immediately preceding the date on which the Distribution is to
    take place; or
    

			
	 	(y)	
    the Available Cash Balance, calculated at the end
    of such Quarterly Period, less the aggregate amount of all
    mandatory prepayments payable pursuant to Section 3.09(d)
    out of such Available Cash Balance;
    

			
	 	(B)	
    the amount of net proceeds received by the
    Borrower in the Distribution Test Period from the issuance of
    Permitted High Yield Back to Back Debt less (i) the amount
    of the mandatory prepayments payable or paid to the Senior
    Lenders in respect of
    

 

			
	 		
    such net proceeds under Section 3.09(a) and
    (ii) the aggregate amount of Distributions made in respect
    of such net proceeds during the Distribution Test Period; and
    
	 
	 	(C)	
    in respect of each Quarterly Period of each
    Financial Year, from and after the Quarterly Period ending on 31
    March 2003, the positive amount, if any, by which
    

			
	 	(i)	
    the Deferred Distribution Amount calculated by
    reference to the end of the previous Financial Year,
    

           
exceeds

			
	 	(ii)	
    the aggregate amount, if any, paid as
    Distributions under this Section 6.01(a)(3)(C) in respect
    of such Deferred Distribution Amount;
    

     
provided that

			
	 	(x)	
    Distributions made in respect of any Distribution
    Test Period shall be deemed to be made (1) first, out of
    the applicable Deferred Distribution Amount, if any,
    (2) second, out of the proceeds of Permitted High Yield
    Back to Back Debt pursuant to Section 6.01(a)(3)(B), if
    any, and (3) third, out of Excess Cash Flow pursuant to Section
    6.01(a)(3)(A), if any, and
    
	 
	 	(y)	
    the amount calculated pursuant to
    Section 6.01(a)(3)(C) in respect of any Quarterly Period
    shall be included in Distributions only to the extent the
    Borrower is in compliance with Romanian law requirements with
    respect to permitted Distributions in the Financial Year in
    which such Quarterly Period occurs.
    

			
	 	(4)	
    Distributions shall occur not earlier than
    fifteen (15) days after the end of each Quarterly Period
    and not later than thirty (30) days after the end of each
    Quarterly Period, provided that
    

			
	 	(A)	
    the first Distribution after the date hereof may,
    at the option of the Borrower take place (subject to the other
    terms of this Section 6.01) either on or after 15 September
    2002 but prior to 30 September 2002 or on or after 15 October
    2002 but prior to 30 October 2002, and
    
	 
	 	(B)	
    the second Distribution after the date hereof
    may, at the option of the Borrower take place (subject to the
    other terms of this Section 6.01) on or after 15 December
    2002 but prior to 30 December 2002 or on or after 15 January
    2003 but prior to 30 January 2003;
    

			
	 	(5)	
    on the date of such Distribution and immediately
    thereafter the USD Equivalent Amount of the Cash and Cash
    Equivalents less the USD Equivalent Amount of the amounts paid
    or payable to the Senior
    

 

			
	 		
    Lenders on such date in connection with the
    Senior Loans, if any, shall be greater than or equal to the
    Minimum Cash Balance;
    
	 
	 	(6)	
    neither of the following events has occurred on
    or prior to the date of such Distribution:
    

			
	 	(A)	
    the creditors of any Operating Shareholder have
    exercised any pledge or other security interest they may have in
    or over any of the share capital, cash or accounts receivable of
    such Operating Shareholder, or
    
	 
	 	(B)	
    any Operating Shareholder has ceased to
    constitute a going concern or an Event of Default under
    Section 7.01(f) has occurred and is continuing with respect
    to any Operating Shareholder provided that for purposes of this
    Section 6.01(6)(B), Section 7.01(f) hereof shall be
    read to include all Operating Shareholders irrespective of
    whether they are also Shareholders;
    

			
	 	(7)	
    no Distributions may occur in a Quarterly Period
    in which (a) the amount of Senior Loans to be prepaid under
    Section 3.09(d)(i) is less than the amount identified in
    Section 3.09(d)(i)(A) or (b) the amount of Senior
    Loans to be prepaid under Section 3.09(d)(ii) is less than
    the amount identified in Section 3.09(d)(ii)(A).
    

		
	(b)	
    The Borrower shall not make any payments to any
    Operating Shareholder, or any Affiliate of any Operating
    Shareholder, other than (i) Distributions permitted under
    Section 6.01(a), and (ii) payments made to an
    Operating Shareholder in the ordinary course of business, on
    ordinary commercial terms, on the basis of arm’s length
    arrangements and involving an ordinary commercial price, whether
    under the Technical Services Agreements (as defined in the Share
    Retention and Subordination Deed) or otherwise, provided such
    payments do not exceed in the aggregate for all such persons
    $3,500,000 in any Financial Year.
    

Section 6.02  Financial
Debt

		
	(a)	
    The Borrower shall not incur, assume or permit to
    exist any Financial Debt except:
    

			
	 	(1)	
    prior to the Existing Loans Repayment Date, the
    Existing Loans;
    
	 
	 	(2)	
    the Senior Loans;
    
	 
	 	(3)	
    any Working Capital Facilities (but only in an
    aggregate available amount not to exceed $20,000,000) (or the
    equivalent thereof in other currencies at then current rates of
    exchange);
    
	 
	 	(4)	
    subject to compliance with Section 3.09(f)
    and Section 5.07(h), Permitted High Yield Back to Back Debt;
    
	 
	 	(5)	
    Financial Debt incurred under guarantees of loans
    of employees of the Borrower, which guarantees are issued
    pursuant to and in accordance with an employee loan guarantee
    plan, which plan (i) shall not permit
    

 

		
	 	
    the aggregate obligations of the Borrower under
    guarantees issued pursuant to such plan to exceed $2,000,000 and
    (ii) the incurrence of such Financial Debt shall otherwise
    be on terms satisfactory to NIB, acting reasonably;
    

			
	 	(6)	
    any interest rate or currency hedging or similar
    derivative transaction permitted under Section 6.04;
    
	 
	 	(7)	
    any indebtedness in connection with a conditional
    sales contract, hire purchase agreement or other instrument
    pursuant to which financing of the purchase price of equipment
    or another tangible asset is provided by a supplier to the
    Borrower, provided that such financing has a maturity of no
    longer than 180 days; and
    
	 
	 	(8)	
    any indebtedness to the Government of Romania or
    any governmental authority, arising in connection with deferred
    payment arrangements in respect of the acquisition of the UMTS
    License.
    

		
	(b)	
    The Borrower shall not enter into
any agreement or arrangement to guarantee or, in any way or
under any condition, to become obligated for all or any part of
any financial or other obligation of another person, except in
the ordinary course of business and only up to an aggregate
amount of $2,000,000.
    
	 
	(c)	
    The Borrower shall not pay any
principal, interest or any other amount in respect of Permitted
High Yield Back to Back Debt, other than interest payments
permitted pursuant to Section 2.01(b)(iv) of the Share
Retention and Subordination Deed provided that:
    

			
	 	(1)	
    at the time of such payment, no Event of Default
    or Potential Event of Default has occurred and is continuing,
    and no Event of Default or Potential Event of Default shall
    occur immediately following such payment; and
    
	 
	 	(2)	
    at the time of such payment and immediately
    thereafter the Borrower shall be in full compliance with the
    covenants set out in Section 5.10(a).
    

Section 6.03  Liens

The Borrower shall not create or permit to exist
any Lien on any property, revenues or other assets, present or
future, of the Borrower, except:

			
	 	(1)	
    at any time prior to the Existing Security
    Discharge Date, the Existing Security;
    
	 
	 	(2)	
    the Security;
    
	 
	 	(3)	
    any tax or other non-consensual Lien arising by
    operation of law or other statutory Lien arising in the ordinary
    course of business, provided that such Lien (other than a Lien
    for a sum which is not yet delinquent) is discharged within
    60 days after the date it is created or, if the validity or
    amount of such Lien or the sum secured by such Lien
    

 

		
	 	
    is being contested in good faith and by proper
    proceedings and adequate reserves have been set aside for the
    payment of such sum, within 60 days after final
    adjudication;
    

			
	 	(4)	
    any Lien on the Borrower Accounts and offshore
    roaming revenues to the extent required to secure the Working
    Capital Facilities; and
    
	 
	 	(5)	
    rights of any Hedge Provider providing hedging
    facilities pursuant to a Hedging Agreement in relation to the
    NIB Loan, the EBRD Loan or the EDC Loan, to share in the
    Security on a pari passu basis with the Senior Lenders,
    such sharing to be on terms and conditions otherwise acceptable
    to NIB, provided that such Hedge Provider shall become a party
    to the Security Sharing and Intercreditor Agreement and the
    Security Documents provided that the amount of such proceeds
    cannot exceed in the aggregate for all such Hedge Providers and
    hedging facilities $30 million.
    

provided, however, that the aggregate of the debt
secured by the Liens securing indebtedness to Working Capital
Lenders shall only be permissible to the extent necessary to
secure on a first priority basis (subject to the Existing
Security) such debt up to an amount not exceeding in aggregate
$20 million and provided further that such Working Capital
Lenders shall have no further entitlement to security, including
under the Security, and that the Working Capital Lenders become
parties to the Security Sharing and Intercreditor Agreement on
terms satisfactory to the Senior Lenders.

Section 6.04  Derivative
Transactions

The Borrower shall not enter into any interest
rate or currency swap, interest rate cap or collar, forward rate
agreement or other interest rate, currency or commodity hedge or
similar derivative transaction, other than any interest rate or
currency hedging against interest rate or currency risks
directly arising out of the Senior Loans or in connection with
vendor invoices of the Borrower in the ordinary course of
business on terms consistent with the Hedging Plan and with
counterparts which have a Standard & Poor’s Rating
Services credit rating of their long-term unsecured debt of at
least “A”, or is otherwise of credit quality
acceptable to NIB. The Borrower shall promptly inform NIB of any
hedging transaction entered into with respect to the Senior
Loans when entered into and shall promptly furnish to NIB a copy
of the Hedging Agreement related thereto.

Section 6.05  Arm’s
Length Transactions

The Borrower shall not enter into any transaction
with any person except in the ordinary course of business, on
ordinary commercial terms and on the basis of arm’s-length
arrangements, or enter into any transaction whereby the Borrower
would pay more than the ordinary commercial price for any
purchase or would receive less than the full ex-works commercial
price (subject to normal trade discounts) for its products or
services.

Section 6.06  Profit-sharing
and Management Arrangements

		
	(a)	
    The Borrower shall not enter into
any partnership, profit-sharing or royalty agreement or other
similar arrangement whereby the Borrower’s income or
profits are, or might be, shared with any other person, other
than Shareholders under conditions expressly
    

 

		
	 	
    set forth in the Project Agreements or Financing
    Agreements, and other than (1) any stock option plan of the
    Borrower, which (i) only permits the purchase of shares or
    exercise of options in conjunction with or after a Public
    Offering or a Public Secondary Sale of the Borrower,
    (ii) caps the number of shares to be issued under such plan
    at no greater than 5% of the total issued and outstanding share
    capital of the Borrower at the relevant time, (iii) applies only
    to employees of the Borrower at specified seniority levels and
    specified consultants of the Borrower and (iv) is otherwise
    acceptable to NIB, or (2) any compensation arrangement
    applicable to persons identified in paragraph (1)(iii) above,
    and acceptable to NIB that has, in substance, the same effect
    and restrictions as to value as a stock option plan identified
    in paragraph (1) above.
    

		
	(b)	
    The Borrower shall not enter into
any management contract or similar arrangement whereby its
business or operations are managed by any other person, other
than with Shareholders under the conditions detailed in the
Project Agreements.
    

Section 6.07  Investments

			
	 	(1)	
    The Borrower shall not form or have any
    Subsidiary.
    
	 
	 	(2)	
    The Borrower shall not make or permit to exist
    loans or advances to, or deposits (other than bank deposits in
    Dollars, Euro or Lei with maturity of less than 90 days
    made in the ordinary course of business with reputable banks)
    with, other persons or investments in any person or enterprise;
    provided, however, that the Borrower may invest cash balances in
    the Borrower Accounts in excess of the Minimum Cash Balance in
    Permitted Treasury Investments.
    
	 
	 	(3)	
    The Borrower shall ensure that at all times the
    representation and warranty contained in Section 2.02(b) is
    true and correct.
    

Section 6.08  Project
Agreements

The Borrower shall not terminate, amend or grant
any waiver in respect of any material provision of any Project
Agreement to which it is a party or consent to any assignment of
any Project Agreement by any other party thereto.

Section 6.09  Changes in
Business and Capital

		
	(a)	
    The Borrower shall not make
changes, or permit changes to be made, to the nature of its
present and presently contemplated business or operations or
change the nature or scope of the Project. The Borrower shall
not carry out any business or activity other than businesses or
activities substantially related to the Project.
    
	 
	(b)	
    
The Borrower shall not make
changes, or permit changes to be made, to its capital other than
(i) pursuant to Distributions permitted under Section 6.01,
(ii) contributions of equity or Permitted Quasi Equity and
(iii) share repurchases permitted under Section 4.04 of the
Share Retention and Subordination Deed, subject in the case of
(iii) to Section 4.05 of the Share Retention and
Subordination Deed and Section 4.4 of the Security
Agreement Over Shares.
    

 

Section 6.10  Prepayment of
Long-term Debt

The Borrower shall not (whether voluntarily or
involuntarily) make any prepayment, repurchase or early
redemption of any Long-term Debt or make any repayment of any
Long-term Debt pursuant to any provision of any agreement or
note which provides directly or indirectly for acceleration of
repayment in time or amount, unless in any such case it shall
contemporaneously make a proportionate prepayment of the
principal amount then outstanding of the NIB Loan in accordance
with the provisions of Section 3.09 (except that there
shall be no minimum amount or notice period for such prepayment).

Section 6.11  Sale of
Assets; Merger

		
	(a)	
    The Borrower shall not sell,
transfer, lease or otherwise dispose of all or a substantial
part (as determined by NIB in its reasonable discretion) of its
assets (whether in a single transaction or in a series of
transactions, related or otherwise).
    
	 
	(b)	
    
The Borrower shall not undertake
or permit any merger, consolidation or reorganization.
    

Section 6.12  Shareholders
Register

The Borrower shall not record any entry in the
shareholders register of the Borrower of any kind whatsoever
including, without limitation, in respect of any security
interest in any of the share capital of the Borrower, transfer
of shares or issuance of shares (a) without providing to
NIB at least five (5) Business Days prior notice in respect of
such entry and within five (5) Business Days after such entry is
made a copy of the shareholders register of the Borrower
reflecting such entry, and (b) without certifying to NIB in
such notice that after such entry is made, 100% of the share
capital of the Borrower, subject to Section 4.05 of the
Share Retention and Subordination Deed and Section 4.4 of
the Security Agreement Over Shares, shall be subject to the
Security Agreement Over Shares.

Section 6.13  Public
Offering or Public Secondary Sale

No shares in the share capital of the Borrower
shall be sold in a Public Offering or Public Secondary Sale
unless:

		
	(a)	
    if no prepayment is made under
Section 3.09(b), more than 75% of the share capital of the
Borrower is subject to the Security after giving effect to such
Public Offering or Public Secondary Sale; and
    
	 
	(b)	
    
if a prepayment as required under
Section 3.09(b) is made, such percentage of shares in the
capital of the Borrower as is required under
Section 3.09(b) is subject to the Security.
    

ARTICLE VII — EVENTS OF
DEFAULT

Section 7.01  Events of
Default

Each of the following events and occurrences
shall constitute an Event of Default under this Agreement:

 

		
	(a)	
    Payments. The Borrower
fails to pay when due any principal of or interest on, the NIB
Loan as required by this Agreement.
    
	 
	(b)	
    
Covenants. The Borrower or
any other party (other than the Senior Lenders, or the Agent)
repudiates or fails to perform in a timely manner any of its
obligations under any Financing Agreement (other than the
Security Sharing and Intercreditor Agreement), such repudiation
or such failure to perform any such obligation is not referred
to elsewhere in this Section 7.01 and, if capable of
remedy, such repudiation or such failure to perform has
continued for (1) a period of 30 days in respect of a
breach of Section 5.10(a) of any of the Senior Loan
Agreements, or (2) a period of 15 days in respect of
all other breaches, in each case after the earlier of the date
upon which (i) the Borrower has become aware of the same or
(ii) notice thereof has been given to the Borrower by NIB.
    
	 
	(c)	
    
Project Agreements. Any
party (other than the Senior Lenders) fails to perform in a
timely manner any of its obligations under any Project
Agreement, the failure to perform such obligation is not
referred to elsewhere in this Section 7.01 and, if capable
of remedy, such failure to perform has continued for a period of
30 days after the earlier of the date upon which
(i) the Borrower has become aware of the same, and (ii)
notice thereof has been given to the Borrower by NIB, and, in
either case, such failure to perform has a material adverse
effect on the ability of the Borrower to perform any of its
obligations under this Agreement.
    
	 
	(d)	
    
Representations. Any
representation or warranty made or confirmed by the Borrower or
any Shareholders or Operating Shareholders in any Financing
Agreement or Project Agreement was false or misleading when made
or confirmed.
    
	 
	(e)	
    
Nationalisation. Any
government or governmental authority condemns, nationalises,
seizes or otherwise expropriates all or any substantial or
significant part of the property or other assets of the Borrower
or of its share capital, or assumes custody or control of such
property or other assets or of the business or operations of the
Borrower or of its share capital, or acquires majority ownership
of the Borrower, or takes any action for the dissolution or
disestablishment of the Borrower or any action that would
prevent the Borrower or its officers from carrying on the
Borrower’s business or operations or a substantial part
thereof.
    
	 
	(f)	
    
Bankruptcy. A decree or
order by a court is entered against (i) the Borrower,
(ii) ClearWave, or (iii) any Operating Shareholder
which is a Shareholder or which is a holder of Permitted High
Yield Back to Back Debt (any such party referred to in
Subparagraph (i), (ii) or (iii), a “Relevant
Person”) adjudging any Relevant Person bankrupt or
insolvent or ordering the winding up or liquidation of its
affairs; or a petition is filed seeking reorganization,
administration, arrangement, adjustment, composition or
liquidation of or in respect of any Relevant Person under any
applicable law (unless, if such petition is filed by a party
other than the Borrower or any Operating Shareholder, is not
consented to by the Borrower or any Operating Shareholder, and
is, in the opinion of NIB acting reasonably, frivolous or
vexatious, such petition is vacated or discharged within
90 days (in case of a petition filed in Romania) or 30 days
(in case of a petition filed in any jurisdiction other than
Romania) of such filing); or a receiver, administrator,
liquidator, assignee, trustee, sequestrator, secured creditor or
other similar official is appointed over or in respect of any
Relevant Person or any substantial part of its property or
assets or any Relevant
    

 

		
	 	
    Person institutes proceedings to be adjudicated
    bankrupt or insolvent, or consents to the institution of
    bankruptcy or insolvency proceedings against it, or files a
    petition or answer or consent seeking reorganization,
    administration, relief or liquidation under any applicable law,
    or consents to the filing of any such petition or to the
    appointment of a receiver, administrator, liquidator, assignee,
    trustee, sequestrator, secured creditor or other similar
    official of any Relevant Person or of any substantial part of
    its property, or makes an assignment for the benefit of
    creditors, or admits in writing its inability to pay its debts
    generally as they become due; or any other event occurs which
    under any applicable law would have an effect analogous to any
    of the events listed in this Section.
    

		
	(g)	
    Financial Debt. Any
Financial Debt of the Borrower (other than the NIB Loan) which
exceeds $1,000,000 or any Financial Debt of any holder of
Permitted High Yield Back to Back Debt in excess of $50,000,000
is not paid when due; or a default of any nature occurs under
any agreement pursuant to which there is outstanding any such
Financial Debt, such default continues beyond any original
applicable period of grace and the holder of such Financial Debt
is entitled to accelerate such Financial Debt; or any such
Financial Debt becomes prematurely due and payable or is placed
on demand.
    
	 
	(h)	
    
Adverse Change. Any
circumstance or event occurs which, in the reasonable opinion of
NIB, is likely to have a material adverse effect on the Project,
the business, operations or financial condition of the Borrower,
or the ability of the Borrower to perform any of its obligations
under any Financing Agreement.
    
	 
	(i)	
    
Termination or Adverse
Amendment of the Licenses. Either License is terminated or
amended by the Ministry in a manner which, in NIB’s sole
discretion, has a material adverse effect on the ability of the
Borrower to perform any of its obligations under this Agreement,
or, if the Ministry gives notice of its intention to so
terminate or amend either License, the earlier to occur of
(i) such termination or amendment or (ii) the date which is
90 days from the date on which the Ministry gives notice of
such intention..
    
	 
	(j)	
    
Interconnection Agreements.
The Romtelecom Interconnection Agreement or the Orange Romania
Interconnection Agreement terminates or expires and is not
renewed, or is amended or renewed in a manner that has a
material adverse effect on the ability of the Borrower to
perform any of its obligations under this Agreement, unless
prior to such termination or non-renewal alternative
arrangements in respect of the matters to which the Romtelecom
Interconnection Agreement or the Orange Romania Interconnection
Agreement, as applicable, relates have been made which are
satisfactory to NIB acting reasonably.
    
	 
	(k)	
    
Judgement. A final
judgement or order for the payment of money in excess of
$5,000,000 (or its equivalent in other currencies at then
current rates of exchange) is rendered against the Borrower or
its properties and such judgement or order shall continue
unsatisfied or unstayed for a period of 15 consecutive days.
    
	 
	(l)	
    
Security Agreement Over
Shares. Subject to Section 4.05 of the Share Retention
and Subordination Deed and Section 4.4 of the Security
Agreement Over Shares, at any time the following condition fails
to be met, and such failure has continued for a period of
30 days after notice thereof has been given to the Borrower
by NIB: 100%
    

 

		
	 	
    of the shares in the capital of the Borrower
    shall remain effectively subject to the security interest in
    favour of the Senior Lenders pursuant to the Security Agreement
    Over Shares.
    

		
	(m)	
    Illegality. At any time it is or
becomes unlawful for the Borrower to perform or comply with any
or all of its obligations under any of the Project Agreements or
any of the obligations of the Borrower under any of the Project
Agreements are not or cease to be legal, valid, binding and
enforceable.
    
	 
	(n)	
    
Change in Control. At any time
ClearWave’s Majority Shareholder or any Controlling
Shareholder is in breach of Section 4.01, 4.02 or 4.03 of
the Share Retention and Subordination Deed.
    

Section 7.02  Acceleration
and Cancellation

Upon the occurrence of an Event of Default, at
any time thereafter, NIB may by notice to the Borrower:

		
	(a)	
    declare all or any portion of the
principal of and accrued interest on, the NIB Loan (together
with any other amounts accrued or payable under this Agreement
the “Declared Amount”) to be immediately due and
payable whereupon the same shall become so due and payable, or
declare all or any part of the Declared Amount to be due and
payable on demand by NIB without any presentment, demand or
protest of any kind, all of which are hereby expressly waived by
the Borrower; and/or
    
	 
	(b)	
    
declare that any undrawn portion
of the NIB Loan shall be cancelled, whereupon the same shall be
cancelled.
    

Section 7.03  Disbursements
Due on Demand

If, pursuant to Section 7.02 NIB declares
all or any part of the Declared Amount to be due and payable on
demand of NIB then, and at any time thereafter, NIB may by
notice to the Borrower:

		
	(a)	
    require repayment of all or such
part of the Declared Amount on such date as it may specify in
such notice (whereupon the same shall become due and payable on
the date specified together with accrued interest thereon and
any other sums then owed by the Borrower hereunder) or withdraw
its declaration with effect from such date as it may specify;
and/or
    
	 
	(b)	
    
select as the duration of any
Interest Period which begins whilst such declaration remains in
effect a period of six months or less.
    

Section 7.04  Automatic
Acceleration

If the Borrower becomes voluntarily or
involuntarily dissolved or bankrupt (however such bankruptcy may
be evidenced), the principal of, and all accrued interest on,
the NIB Loan (together with any other amounts accrued or payable
under this Agreement) shall thereupon become immediately due and
payable (anything in this Agreement to the contrary
notwithstanding) without any presentment, demand, protest or
notice of any kind, all of which are hereby expressly waived by
the Borrower.

 

ARTICLE VIII —
MISCELLANEOUS

Section 8.01  Term of
Agreement

This Agreement shall continue in force until the
date that the obligation of NIB to make Disbursements hereunder
has terminated in accordance with the terms hereof or, if later,
until all moneys payable hereunder have been fully paid in
accordance with the provisions hereof; provided that the
indemnities and warranties of the Borrower shall survive
repayment of the NIB Loan and termination of this Agreement.

Section 8.02  Entire
Agreement; Amendment and Waiver

This Agreement and the documents referred to
herein constitute the entire obligation of the parties hereto
with respect to the subject matter hereof and shall supersede
any prior expressions of intent or understandings with respect
to this transaction. Any amendment to, waiver by NIB of any of
the terms or conditions of or consent given by NIB under, this
Agreement (including, without limitation, this
Section 8.02) shall be in writing, signed by NIB and, in
the case of an amendment, by the Borrower. In the event that NIB
waives a condition to any Disbursement, the Borrower shall, by
receiving the proceeds of such Disbursement, be deemed to have
agreed to all of the terms and conditions of such waiver.

Section 8.03  Notices

		
	(a)	
    Communications in writing.
Any communication to be made under or in connection with this
Agreement shall be made in writing and unless otherwise stated,
may be made by fax, letter or, subject to Section 8.03(d),
electronic mail.
    
	 
	(b)	
    
Addresses. The address, fax
number or e-mail address (and the department or officer, if any,
for whose attention the communication is to be made) of each
party for any communication or document to be made or delivered
under or in connection with this Agreement is:
    

		
	 	
    For the Borrower:
    
	 
	 	
    MobiFon S.A.

City Business Centre

3 Nerva Traian Street

Complex M l01, Sector 3

Bucharest, Romania
    
	 
	 	
    Attention: Chief Financial Officer

Fax:     (40)
(21) 302-1455

E-mail:  To be notified by the Borrower
    
	 
	 	
    For NIB:
    
	 
	 	
    Nordic Investment Bank

P.O. Box 249

FIN-00171 Helsinki

Finland

    

 

		
	 	
     Attention: Tarja Kylanpaa/ Eva Sandstrom

Fax:     358 9 622 1504

E-mail:  To be notified by NIB

    

		
	 	
    or any substitute address, fax number or e-mail
    address or department or officer as the Borrower may notify to
    NIB (or NIB may notify to the Borrower if a change is made by
    NIB) by not less than five Business Days’ notice.
    

		
	(c)	
    Delivery. Any communication
or document made or delivered by one person to another under or
in connection with this Agreement will only be effective:
    

			
	 	(i)	
    if by way of fax, when received in legible form;
    or
    
	 
	 	(ii)	
    if by way of letter, when it has been left at the
    relevant address or five Business Days after being deposited in
    the post postage prepaid in an envelope addressed to it at that
    address; or
    
	 
	 	(iii)	
    if by way of e-mail, when a delivery receipt is
    received by the sender confirming that the e-mail has been
    delivered to the recipient’s correct e-mail address;
    

		
	 	
    and, if a particular department or officer is
    specified as part of its address details provided under
    Section 8.03(b), if addressed to that department or officer.
    
	 
	 	
    Any notice delivered in accordance with this
    Section 8.03 after 4:00 p.m. on a Business Day, or on a day
    which is not a Business Day, will be deemed to have been
    delivered at 10:00 a.m. on the next Business Day.
    

		
	(d)	
    Limitation on use of electronic
    mail. Electronic mail may only be used
    for communications to be made under or in connection with the
    following Sections of this Agreement:
    

			
	 	(i)	
    Section 5.13(a)(1), (2), (3) and (4);
    
	 
	 	(ii)	
    Section 5.13(d);
    
	 
	 	(iii)	
    Section 5.13(e);
    

		
	 	
    (iv)  Section 5.13(k);
    
	 
	 	
    (v)   Section 5.13(l)(2); and
    
	 
	 	
    (vi)  Section 5.13(m).
    

		
	 	
    If the Borrower supplies NIB with Financial
    Statements pursuant to Section 5.13 by e-mail, the Borrower
    shall supply a hard copy of those Financial Statements within 5
    Business Days to NIB if NIB notifies the Borrower that it
    requires a hard copy of those Financial Statements.
    

		
	(e)	
    Use of websites.
    

 

			
	 	(1)	
    Except as provided below, the Borrower may
    deliver any information identified in Section 8.03(d) to
    NIB by posting it on to an electronic website if:
    

			
	 	(i)	
    NIB and the Borrower agree;
    
	 
	 	(ii)	
    NIB designates an electronic website for this
    purpose;
    
	 
	 	(iii)	
    both the Borrower and NIB are aware of the
    address of and any relevant password specifications for the
    website; and
    

		
	 	
    (iv)  the information posted is in a
    format agreed between the Borrower and NIB.
    

			
	 	(2)	
    Notwithstanding the above, the Borrower must
    supply to NIB in paper form a copy of any information posted on
    the website:
    

			
	 	(i)	
    if so requested to do so by NIB; and
    
	 
	 	(ii)	
    if so required by a governmental requirement.
    

		
	 	
    In both cases within ten (10) Business Days
    of receipt of the request.
    

			
	 	(3)	
    The Borrower must promptly upon becoming aware of
    its occurrence, notify NIB if:
    

			
	 	(i)	
    the website cannot be accessed;
    
	 
	 	(ii)	
    the website or any information on the website is
    infected by any electronic virus or similar software;
    
	 
	 	(iii)	
    the relevant password specification for the
    website is changed; or
    

		
	 	
    (iv)  any information is posted on the
    website or amended after being posted.
    

		
	 	
    In the circumstances in paragraphs (i) or
    (ii) above occur, the Borrower must supply any information
    required under this Agreement in paper form.
    

Section 8.04  English
Language

All documents to be furnished or communications
to be given or made under this Agreement shall be in the English
language or, if in another language, shall be accompanied by a
translation into English certified by the Borrower, which
translation shall be the governing version between the Borrower
and NIB.

Section 8.05  Financial
Calculations

All financial calculations to be made under, or
for the purposes of this Agreement shall be made in accordance
with Generally Accepted Accounting Principles and, except as
otherwise required to conform to the definitions contained in
Article I or any other provisions of this

 

		
	 	
    Agreement, shall be made using the then most
    recently issued quarterly Financial Statements which the
    Borrower is required to furnish to NIB from time to time under
    Section 5.13(a); provided, however, that:
    

			
	 	(1)	
    if the relevant quarterly Financial Statements
    should be in respect of the last quarter of a Financial Year
    then, at NIB’s option, such calculations may instead be
    made from the audited Financial Statements for the relevant
    Financial Year; and
    
	 
	 	(2)	
    if there should occur any material adverse change
    in the financial condition of the Borrower after the end of the
    period covered by the relevant Financial Statements, then such
    material adverse change shall also be taken into account in
    calculating the relevant figures.
    

Section 8.06  Rights,
Remedies and Waivers

		
	(a)	
    The rights and remedies of NIB in
relation to any misrepresentations or breach of warranty on the
part of the Borrower shall not be prejudiced by any
investigation by or on behalf of NIB into the affairs of the
Borrower, by the execution or the performance of this Agreement
or by any other act or thing which may be done by or on behalf
of NIB in connection with this Agreement and which might, apart
from this Section, prejudice such rights or remedies.
    
	 
	(b)	
    
No course of dealing or waiver by
NIB in connection with any condition of disbursement under this
Agreement shall impair any right, power or remedy of NIB with
respect to any other condition of disbursement or be construed
to be a waiver thereof.
    
	 
	(c)	
    
No action of NIB in respect of any
Disbursement shall affect or impair any right, power or remedy
of NIB in respect of any other Disbursement. Without limiting
the foregoing, the right of NIB to require compliance with any
condition under this Agreement which may be waived by NIB in
respect of any Disbursement is, unless otherwise notified to the
Borrower by NIB, expressly preserved for the purposes of any
subsequent Disbursement.
    
	 
	(d)	
    
No course of dealing and no delay
in exercising, or omission to exercise, any right, power or
remedy accruing to NIB upon any default under this Agreement or
any other agreement shall impair any such right, power or remedy
or be construed to be a waiver thereof or an acquiescence
therein. No single or partial exercise of any such right, power
or remedy shall preclude any other or further exercise thereof
or the exercise of any other right, power or remedy. No action
of NIB in respect of any such default, or acquiescence by it
therein, shall affect or impair any right, power or remedy of
NIB in respect of any other default.
    
	 
	(e)	
    
The rights and remedies provided
in this Agreement and the other Financing Agreements are
cumulative and not exclusive of any other rights or remedies,
whether provided by applicable law or otherwise.
    

 

Section 8.07  Indemnification

		
	(a)	
    The Borrower assumes full liability for, and
    agrees to and shall indemnify and hold harmless NIB and its
    officers, directors, employees, agents and servants against and
    from any and all liabilities, obligations, losses, damages
    (compensatory, punitive or otherwise), penalties, claims,
    actions, taxes, duties, suits, costs and expenses (including,
    without limitation, reasonable legal counsel’s fees and
    expenses and costs of investigation including, where applicable,
    VAT) of whatsoever kind and nature (as the same is described in
    a notice provided by NIB to the Borrower in respect thereof)
    including, without prejudice to the generality of the foregoing,
    those arising in contract or tort (including, without
    limitation, negligence) or by strict liability or otherwise,
    which are imposed on, incurred by or asserted against NIB or any
    of its officers, directors, employees, agents or servants
    (whether or not also indemnified by any other person under any
    other document) and which in any way relate to or arise out of,
    whether directly or indirectly:
    

			
	 	(1)	
    any of the transactions contemplated by any
    Financing Agreement, Project Agreement, or other Material
    Agreement or the execution, delivery or performance thereof;
    
	 
	 	(2)	
    the operation or maintenance of the
    Borrower’s facilities or the ownership, control or
    possession thereof by the Borrower; or
    
	 
	 	(3)	
    the exercise by NIB of any of its rights and
    remedies under any of the Financing Agreements;
    

		
	 	
    provided that NIB shall not have any right to be
    indemnified hereunder for its own recklessness or wilful
    misconduct.
    

		
	(b)	
    The Borrower acknowledges that NIB is entering
    into this Agreement and has acted solely as a lender, and not as
    an advisor, to the Borrower. The Borrower represents and
    warrants that, in entering into the Financing Agreements, it has
    engaged, and relied upon advice given to it by, its own legal,
    financial and other professional advisors and it has not relied
    on and will not hereafter rely on any advice given to it by NIB.
    
	 
	(c)	
    If any sum (a “Sum”) due from the
    Borrower under this Agreement or any order, judgment or award
    given or made in relation hereto has to be converted from the
    currency (the “First Currency”) in which such Sum is
    payable into another currency (the “Second Currency”)
    for the purpose of:
    

			
	 	(i)	
    making or filing a claim or proof against the
    Borrower;
    
	 
	 	(ii)	
    obtaining an order, judgment, award or decision
    in any court, arbitral proceedings or other tribunal; or
    
	 
	 	(iii)	
    enforcing any order, judgment, award or decision
    given or made in relation hereto,
    

		
	 	
    the Borrower shall indemnify NIB for any Sum
    which is due to NIB from and against any loss suffered or
    incurred as a result of any discrepancy between (a) the
    rate of
    

 

		
	 	
    exchange used for such purpose to convert such
    Sum from the First Currency into the Second Currency and
    (b) the rates of exchange available to NIB at the time of
    receipt of such Sum.
    

(d)  Set-off:

			
	 	(i)	
    Contractual Set-off.
    The Borrower authorizes NIB to apply any amounts owed by NIB to
    the Borrower in satisfaction of any sum due and payable from the
    Borrower to NIB hereunder but unpaid. For this purpose, NIB is
    authorized to purchase with the moneys standing to the credit of
    any such account such other currencies as may be necessary to
    effect such application;
    
	 
	 	(ii)	
    Set-off not
    Mandatory. NIB shall not be obliged to
    exercise any right given to it by Section 8.07(d)(i).
    

Section 8.08  Governing
Law

This Agreement shall be governed by and construed
in accordance with the laws of England.

Section 8.09  Arbitration
and Jurisdiction

		
	(a)	
    Any dispute, controversy or claim arising out of
    or relating to this Agreement, or the breach, termination or
    invalidity hereof, shall be settled by arbitration in accordance
    with the UNCITRAL Arbitration Rules as at present in force.
    There shall be one arbitrator and the appointing authority shall
    be the London Court of International Arbitration. The seat and
    place of arbitration shall be London, England and the English
    language shall be used throughout the arbitral proceedings. The
    parties hereby waive any rights under the Arbitration Act 1996
    to appeal any arbitration award to, or to seek determination of
    a preliminary point of law by, the Courts of England. The
    arbitral tribunal shall not be authorised to take or provide,
    and the Borrower agrees that it shall not seek from any judicial
    authority, any interim measures of protection or pre-award
    relief against NIB, any provisions of UNCITRAL Arbitration Rules
    notwithstanding. The arbitral tribunal shall have authority to
    consider and include in any proceeding, decision or award any
    further dispute properly brought before it by NIB or the
    Borrower insofar as such dispute arises out of any Financing
    Agreement, but, subject to the foregoing, no other parties or
    other disputes shall be included in, or consolidated with, the
    arbitral proceedings. In any arbitral proceeding, the
    certificate of NIB as to any amount due to NIB under any
    Financing Agreement shall be prima facie evidence of such amount.
    
	 
	(b)	
    Notwithstanding Section 8.09(a), this
    Agreement and the other Financing Agreements, and any rights of
    NIB arising out of or relating to this Agreement or any other
    Financing Agreement, may, at the option of NIB, be enforced by
    NIB in the courts of Romania or in any other courts having
    jurisdiction. For the benefit of NIB, the Borrower hereby
    irrevocably submits to the non-exclusive jurisdiction of the
    courts of England with respect to any dispute, controversy or
    claim arising out of or relating to this Agreement or any other
    Financing Agreement, or the breach, termination or invalidity
    hereof or thereof. The Borrower hereby irrevocably designates,
    appoints and empowers The Law Debenture Corporate Services
    Limited at its registered office (being, on the date hereof, at
    100 Wood Street, 5th Floor,
    

 

		
	 	
    London EC2V 7EX, England) to act as its
    authorised agent to receive service of process and any other
    legal summons in England for purposes of any such action or
    proceeding. The Borrower hereby irrevocably consents to the
    service of process or any other legal summons out of such courts
    by mailing copies thereof by registered airmail postage prepaid
    to its address specified herein. The Borrower covenants and
    agrees that, so long as it has any obligations under this
    Agreement, it shall maintain a duly appointed agent to receive
    service of process and any other legal summons in any legal
    action or proceeding brought by NIB in England in respect of any
    Financing Agreement and shall keep NIB advised of the identity
    and location of such agent. Nothing herein shall affect the
    right of NIB to commence legal actions or proceedings against
    the Borrower in any manner authorised by the laws of any
    relevant jurisdiction. The commencement by NIB of legal actions
    or proceedings in one or more jurisdictions shall not preclude
    NIB from commencing legal actions or proceedings in any other
    jurisdiction, whether concurrently or not. The Borrower
    irrevocably waives any objection it may now or hereafter have on
    any grounds whatsoever to the laying of venue of any legal
    action or proceeding and any claim it may now or hereafter have
    that any such legal action or proceeding has been brought in an
    inconvenient forum.
    

Section 8.10  Privileges and
Immunities of NIB

Nothing in this Agreement shall be construed as a
waiver, renunciation or other modification of any immunities,
privileges or exemptions of NIB accorded under the Agreement
among Denmark, Finland, Iceland, Norway and Sweden regarding
Nordic Investment Bank dated October 23, 1998 and the
Agreement for Financial Cooperation between the Romanian
Government and NIB dated August 26, 1998, international
convention or any applicable law.

Section 8.11  Waiver of
Sovereign Immunity

The Borrower represents and warrants that this
Agreement and the incurring by the Borrower of NIB Loan are
commercial rather than public or governmental acts and that the
Borrower is not entitled to claim immunity from legal
proceedings with respect to itself or any of its assets on the
grounds of sovereignty or otherwise under any law or in any
jurisdiction where an action may be brought for the enforcement
of any of the obligations arising under or relating to this
Agreement. To the extent that the Borrower or any of its assets
has or hereafter may acquire any right to immunity from set-off,
legal proceedings, attachment prior to judgement, other
attachment or execution of judgement on the grounds of
sovereignty or otherwise, the Borrower hereby irrevocably waives
such rights to immunity in respect of its obligations arising
under or relating to this Agreement.

Section 8.12  Successors and
Assigns; Third Party Rights.

		
	(a)	
    Binding Agreement.
    This Agreement shall be binding upon
    and enure to the benefit of each party hereto and its or any
    subsequent successors and transferees.
    
	 
	(b)	
    No Assignments and Transfers by the Borrower.
    The Borrower shall not be entitled to
    assign or transfer all or any of its rights, benefits and
    obligations hereunder.
    
	 
	(c)	
    
Assignments and Transfers.
    NIB may, at any time, (i) assign
    any of its rights and benefits hereunder, or (ii) transfer
    by novation any of its rights, benefits and obligations
    hereunder, provided that in respect of transfers (save in the
    case of any
    

 

		
	 	
    transfer (a) to any subsidiary or holding
    company of NIB, (b) after the occurrence of the final
    Disbursement hereunder, the suspension or cancellation of the
    NIB Loan, or an Event of Default or Potential Event of Default,
    or (c) which occurs after the end of the Tranche II
    Commitment Period) and subject as provided in
    Section 8.12(d), no such assignment or transfer may be made
    without the prior written consent of the Borrower, such consent
    not to be unreasonably withheld or delayed.
    

		
	(d)	
    Deemed Consent. Any
    consent required to be given by a party under
    Section 8.12(c) shall be deemed to have been given unless
    such party shall have notified the requesting party to the
    contrary within five (5) Business Days of the request for such
    consent.
    

		
	(e)	
    Third Party Rights.
    Except as provided in
    Section 8.12(a) or 8.12(b), a person who is not a party to
    this Agreement may not enforce any of its terms under the
    Contracts (Rights of Third Parties) Act 1999.
    Notwithstanding any term of this Agreement, the consent of any
    third party is not required for any variation (including any
    release or compromise of any liability under) or termination of
    this Agreement.
    

Section 8.13  Disclosure

NIB may disclose such documents, information and
records regarding the Borrower and this transaction (including,
without limitation, copies of any Financing Agreements and
Project Agreements) as NIB deems appropriate in connection with
any dispute involving the Borrower or any other party to a
Financing Agreement, for the purpose of preserving or enforcing
any of NIB’s rights under any Financing Agreement or
collecting any amount owing to NIB or in connection with any
proposed sale, transfer, assignment, novation or other disposal
contemplated by Section 8.12.

 

Section 8.14  Counterparts

This Agreement may be executed in several
counterparts, each of which shall be deemed an original, but all
of which together shall constitute one and the same agreement.

IN WITNESS WHEREOF,
the parties hereto, acting through their duly authorised
representatives, have caused this Agreement to be signed in
their respective names as of the date first above written.

MOBIFON S.A.

	 	 	 
	
    
    By:
    

    	 	
    

Name: James J. Jackson

Title:   Senior Vice President

and Chief Financial Officer
    

NORDIC INVESTMENT BANK

	 	 	 
	
    
    By:
    

    	 	
    

Name: Tarja Kylanpaa

Title:   Vice President
    

	 	 	 
	
    
    By:
    

    	 	
    

Name: Ebbe Thalin

Title:   Vice President
    

 

Exhibit A — Form of Disbursement
Application — NIB Loan

[To Be Typed on Letterhead of the Borrower]

[Date]

Nordic Investment Bank

P.O. Box 249

FIN-00171 Helsinki

Finland

Attention: Tarja Kylanpaa/ Eva Sandstrom

Fax: 358 9 622 1504

Subject:

                    Disbursement
Application
No.                               1

Sir/ Madam:

		
	2.	
    Please refer to the loan agreement dated 27
    August 2002 (the “Loan Agreement”) between MobiFon
    S.A. (the “Borrower”) and Nordic Investment Bank
    (“NIB”).
    
	 
	3.	
    Expressions defined in the Loan Agreement shall
    bear the same meanings herein.
    
	 
	4.	
    We hereby request the following Disbursement of
    the [Tranche I NIB Loan]/[Tranche II NIB Loan] in accordance
    with the provisions of the Loan Agreement:
    

	 	 	 	 	 
	
    
    Amount (in figures and words):
    

    	 	 	
	 
	 	 	 	
	 
	
    
    Value Date:
    

    	 	[As soon as possible, on a date selected
	
    
    by
    

    	 	NIB in its discretion, but not later than]2
	 	 	 	               3	 

	 	 	 	 	 
	
    
    Payment Instructions (Borrower’s Banking
    Details):

    	 	 	 	 
	
    
    Borrower’s Account Name:
    

    	 	
	 	 
	
    
    Borrower’s Account Number:
    

    	 	
	 	 
	
    
    Borrower’s Bank Name:
    

    	 	
	 	 
	
    
    Borrower’s Bank Address:
    

    	 	
	 	 
	 
	
    
    Borrower’s Bank Correspondent
    Details:

    	 	 	 	 
	
    
    Correspondent’s Name:4
    

    	 	
	 	 
	
    
    Correspondent’s Address:
    

    	 	
	 	 
	 	 	
	 	 
	
    
    Borrower’s Bank’s Account Name:
    

    	 	
	 	 

		
	1	
    Each application must be numbered in series.
    
	 
	2	
    If the disbursement is required for a specific
    value date, this bracketed language may be deleted.
    
	 
	3	
    This date must not be earlier than 8 Business
    Days (except in respect of the Disbursement of the Tranche I NIB
    Loan, in which case 5 Business Days) after the date the
    disbursement application is delivered to NIB.
    
	 
	4	
    Name of bank in country of Loan Currency.
    

 

	 	 	 	 	 
	
    
    Borrower’s Bank’s Account Name:
    

    	 	
	 	 
	
    
    Reference:
    

    	 	
	 	 

		
	5.	
    For the purposes of Section 4.03(b) of the
    Loan Agreement, we hereby represent and warrant that:
    

			
	 	(a)	
    all agreements, documents and instruments
    delivered to NIB pursuant to Section 4.01 of the Loan
    Agreement are in full force and effect and unconditional (except
    for the Loan Agreement having become unconditional, if that is a
    condition of any such agreement);
    

			
	 	(b)	
    the representations and warranties made by the
    Borrower in the Financing Agreements and Project Agreements are
    true on and as of the date hereof with the same effect as though
    such representations and warranties had been made on and as of
    the date hereof;
    

			
	 	(c)	
    no Event of Default or Potential Event of Default
    has occurred and is continuing or is imminent;
    

			
	 	(d)	
    the Borrower will not, as a result of such
    Disbursement, be in violation of its Charter, any provision
    contained in any material agreement or instrument to which the
    Borrower is a party (including the Loan Agreement) or by which
    the Borrower is bound or any law applicable to the Borrower;
    

			
	 	(e)	
    nothing has occurred which might have a material
    adverse effect on the Project, the Borrower’s business,
    operations or financial condition or the ability of the Borrower
    to perform any of its obligations under any Financing Agreement
    or Project Agreement; and
    

			
	 	(f)	
    the proceeds of such Disbursement are needed by
    the Borrower for the purposes set out in [Section 4.01(n).]
    [In case of a Tranche I NIB Loan Disbursement]
    [Section 4.03(e)] [In case of a Tranche II NIB Loan
    Disbursement].
    

		
	6.	
    For the purpose of Section 4.03(g) we hereby
    represent and warrant that, upon giving effect to such
    Disbursement, and any concurrent disbursements under the EBRD
    Loan and the EDC Loan, the total Disbursements under the NIB
    Loan shall remain pro rata as among the NIB Loan,
    the EBRD Loan, and the EDC Loan.
    
	 
	7.	
    The representations and warranties made in
    paragraphs 4 and 5 above on this date will continue to be true
    on and as of the date of such Disbursement with the same effect
    as though such representations and warranties had been made on
    and as of the date of such Disbursement. If any such
    representation or warranty is no longer true on or prior to or
    as of the date of such Disbursement, we shall immediately notify
    NIB and shall, upon demand by NIB, repay any amount which has
    been or is disbursed by NIB in respect of such Disbursement.
    

 

Yours faithfully,

MOBIFON S.A.

By:

Authorised Representative5

		
	5	
    As named in the Certificate of Incumbency and
    Authority.
    

 

Exhibit B — Form of Certificate of
Incumbency and Authority

[To Be Typed on Letterhead of the Borrower]

[Date]

Nordic Investment Bank

P.O. Box 249

FIN-00171 Helsinki

Finland

Attention:  Tarja Kylanpaa/ Eva
Sandstrom

Fax:              358 9 622 1504

Subject:

                    Certificate
of Incumbency and Authority6

Sir/ Madam:

With reference to the loan agreement dated 27
August 2002 (the “Loan Agreement”) between MobiFon
S.A. (the “Borrower”) and Nordic Investment Bank
(“NIB”), I, the undersigned [President] [Chairman of
the Board of Directors] [Chief Executive Officer] of the
Borrower, duly authorised by its Board of Directors, hereby
certify that the following are the names, offices and true
specimen signatures of the persons, any one of whom is and will
continue to be (until NIB has received actual written notice
from the Borrower that they or any of them no longer continue to
be) authorised, on behalf of the Borrower, individually:

		
	1.	
    to sign the Loan Agreement, any Disbursement
    applications, certifications, letters or other documents to be
    provided under the Loan Agreement and any other agreements to
    which NIB and the Borrower may be party in connection therewith;
    and
    
	 
	2.	
    to take any other action required or permitted to
    be taken by the Borrower under the Loan Agreement or any other
    agreement to which NIB and the Borrower may be party in
    connection therewith:
    

	 	 	 	 	 
	
    
    NAME

    	 	
    OFFICE	 	
    SPECIMEN SIGNATURE
	
	 	
	 	

	
	 	
	 	

	
	 	
	 	

	
	 	
	 	

		
	6	
    Designation may be changed by the Borrower at any
    time by providing a new Certificate of Incumbency and Authority
    to NIB.
    

 

IN WITNESS WHEREOF,
I have signed my name on the date first above written.

Yours faithfully,

MOBIFON S.A.

	 	 	 
	
    
    By:
    

    	 	
    

Name:

Title:   [President]

[Chairman of the Board of Directors]

[Chief Executive Officer]
    

 

Exhibit C — Form of Letter to
Auditors

[To Be Typed on Letterhead of the Borrower]

[Date]

[Name of Auditors] [Address]

Sir/ Madam:

We hereby authorise and request you to give to
Nordic Investment Bank (“NIB”) all such information as
it may reasonably request with regard to our Financial
Statements, both audited and unaudited, which we have agreed to
furnish to NIB under the terms of the loan agreement dated 27
August, 2002 (the “Loan Agreement”) between ourselves
and NIB. For your information, we enclose a copy of the Loan
Agreement.

We authorise you to send our audited accounts to
NIB to enable us to satisfy the reporting requirements set forth
in Section 5.13 of the Loan Agreement. When submitting the
same to NIB, you are also requested to send, at the same time, a
copy of your full report on such accounts in a form acceptable
to NIB.

For our records, please ensure that you send to
us a copy of every letter which you receive from NIB immediately
upon receipt and a copy of each reply made by you immediately
upon the issue thereof.

Yours faithfully,

MOBIFON S.A.

	 	 	 
	
    
    By:
    

    	 	
    

Authorised
    Representative
    

Enclosure: Loan Agreement

cc: Nordic Investment Bank

P.O. Box 249

FIN-00171 Helsinki

Finland

Attention:  Tarja Kylanpaa/ Eva
Sandstrom

Fax:           358
9 622 1504

Subject:

 

SCHEDULE A — LIST OF MATERIAL
AGREEMENTS

Agreements

		
	1.	
    The Financing Agreements.
    
	 
	2.	
    The Project Agreements.
    
	 
	3.	
    Any Site Agreements.
    
	 
	4.	
    Any Handset Agreements.
    
	 
	5.	
    The SIM Card Agreements.
    
	 
	6.	
    Any Roaming Agreements.
    
	 
	7.	
    Lease Agreements with all lessors and in respect
    of all Major Leases identified in Annex A-1 to this
    Schedule A.
    
	 
	8.	
    The following Interconnection Agreements:
    

          Interconnection
Agreements & Amendments

	 	 	 	 	 
	Operator		Dated
	
		

	
    
    Romtelecom
    

    	 	 	6-Aug-97	 
	
    
    Additional Act no.1
    

    	 	 	12-Mar-98	 
	
    
    Additional Act no.2
    

    	 	 	2-May-99	 
	
    
    Additional Act no.3
    

    	 	 	30-Jul-99	 
	
    
    Orange (Mobil Rom)
    

    	 	 	12-May-99	 
	
    
    Additional Act no.1
    

    	 	 	28-May-99	 
	
    
    Additional Act no.2
    

    	 	 	9-Oct-00	 
	
    
    TELEMOBIL SA
    

    	 	 	31-Mar-01	 
	
    
    Additional Act no.1
    

    	 	 	20-Mar-02	 
	
    
    Additional Act no.2
    

    	 	 	9-Aug-02	 
	
    
    Cosmorom SA
    

    	 	 	20-Mar-00	 
	
    
    Additional Act no.1
    

    	 	 	12-Apr-01	 

		
	9.	
    All agreements identified in Annex A-2 to this
    Schedule A;
    

 

		
	10.	
    Amendments to the License Regarding Installation
    and Operation of Public GSM Communication Network in Romania
    dated June 4, 1998 and September 17, 1998 (Romanian
    original and English translation);
    
	 
	11.	
    Certificate of investor dated May 19, 1998
    issued to MobiFon S.A. by the Ministry of
    Privatization — Department of Foreign Investment
    Promotion;
    
	 
	12.	
    Other agreements identified as Material
    Agreements by NIB from time to time after the date of this
    Agreement in consultation with the Borrower.
    

Corporate Documents

		
	1.	
    Additional Act to the Contract of Association of
    MobiFon S.A. — authenticated by public notary on
    February 20, 1997 — authentication minutes
    no.106/1997;
    
	 
	2.	
    Additional Act to the Contract of Association of
    MobiFon S.A. — authenticated by public notary on
    August 29, 1997 — authentication minutes
    no.81/1997;
    
	 
	3.	
    Additional Act to the Contract of Association and
    Statutes of MobiFon S.A. — authenticated by public
    notary on September 16, 1997 — authentication
    minutes no.980/1997;
    
	 
	4.	
    Additional Act to the Contract of Association and
    Statutes of MobiFon S.A. — authenticated by public
    notary on October 09, 1997 — authentication
    minutes no.5089/1997;
    
	 
	5.	
    Additional Act to the Contract of Association and
    Statutes of MobiFon S.A. — authenticated by public
    notary on January 22, 1998 — authentication
    minutes no.359/1998;
    
	 
	6.	
    Additional Act to the Contract of Association and
    Statutes of MobiFon S.A. — authenticated by public
    notary on February 26, 1998 — authentication
    minutes no.1091/1998;
    
	 
	7.	
    Additional Act to the Contract of Association and
    Statutes of MobiFon S.A. — authenticated by public
    notary on April 7, 1998 — authentication minutes
    no.1975/1998;
    
	 
	8.	
    Additional Act to the Contract of Association and
    Statutes of MobiFon S.A. — authenticated by public
    notary on May 11, 1998 — authentication minutes
    no.2619/1998;
    
	 
	9.	
    Additional Act to the Contract of Association and
    Statutes of MobiFon S.A. — authenticated by public
    notary on May 11, 1998 — authentication minutes
    no.2620/1998;
    
	 
	10.	
    Additional Act to the Contract of Association and
    Statutes of MobiFon S.A. — authenticated by public
    notary on May 11, 1998 — authentication minutes
    no.2621/1998;
    

 

		
	11.	
    Additional Act to the Contract of Association and
    Statutes of MobiFon S.A. — authenticated by public
    notary on September 11, 1998 — authentication
    minutes no.6110/1998;
    
	 
	12.	
    Additional Act to the Contract of Association and
    Statutes of MobiFon S.A. — authenticated by public
    notary on October 15, 1998 — authentication
    minutes no.6748/1998;
    
	 
	13.	
    Additional Act to the Contract of Association and
    Statutes of MobiFon S.A. — authenticated by public
    notary on December 15, 1998 — authentication
    minutes no.7779/1998;
    
	 
	14.	
    Additional Act to the Contract of Association and
    Statutes of MobiFon S.A. — authenticated by public
    notary on October 16, 1998 — authentication
    minutes no.6776/1998;
    
	 
	15.	
    Additional Act to the Contract of Association and
    Statutes of MobiFon S.A. — authenticated by public
    notary on December 10, 1998 — authentication minutes
    no.7703/1998;
    
	 
	16.	
    Additional Act to the Contract of Association and
    Statutes of MobiFon S.A. — authenticated by public
    notary on December 15, 1998 — authentication
    minutes no.7778/1998;
    
	 
	17.	
    Additional Act to the Contract of Association and
    Statutes of MobiFon S.A. — authenticated by public
    notary on March 9, 1999 — authentication minutes
    no.1180/1999;
    
	 
	18.	
    Additional Act to the Contract of Association and
    Statutes of MobiFon S.A. — authenticated by public
    notary on June 11, 1999 — authentication minutes
    no.2978/1999;
    
	 
	19.	
    Additional Act to the Contract of Association and
    Statutes of MobiFon S.A. — authenticated by public
    notary on June 11, 1999 — authentication minutes
    no.2977/1999;
    
	 
	20.	
    Additional Act to the Contract of Association and
    Statutes of MobiFon S.A. — authenticated by public
    notary on August 24, 1999 — authentication
    minutes no.4393/1999;
    
	 
	21.	
    Additional Act to the Contract of Association and
    Statutes of MobiFon S.A. — authenticated by public
    notary on November 19, 1999 — authentication
    minutes no.5863/1999;
    
	 
	22.	
    Additional Act to the Contract of Association and
    Statutes of MobiFon S.A. — authenticated by public
    notary on June 11, 1999 — authentication minutes
    no.2977/1999;
    
	 
	23.	
    Additional Act to the Contract of Association and
    Statutes of MobiFon S.A. — authenticated by public
    notary on August 24, 1999 — authentication
    minutes no.4393/1999;
    

 

		
	24.	
    Additional Act to the Contract of Association and
    Statutes of MobiFon S.A. — authenticated by public
    notary on December 08, 1999 — authentication
    minutes no.6174/1999;
    
	 
	25.	
    Additional Act to the Contract of Association and
    Statutes of MobiFon S.A. — authenticated by public
    notary on December 08, 1999 — authentication
    minutes no.6173/1999;
    
	 
	26.	
    Additional Act to the Contract of Association and
    Statutes of MobiFon S.A. — authenticated by public
    notary on December 08, 1999 — authentication
    minutes no.6172/1999;
    
	 
	27.	
    Additional Act to the Contract of Association and
    Statutes of MobiFon S.A. — authenticated by public
    notary on December 08, 1999 — authentication
    minutes no.6175/1999;
    
	 
	28.	
    Additional Act to the Contract of Association of
    MobiFon S.A. — authenticated by public notary on
    June 8, 2000 — authentication minutes
    no.2701/2000;
    
	 
	29.	
    Additional Act to the Contract of Association of
    MobiFon S.A. — authenticated by public notary on
    June 8, 2000 — authentication minutes
    no.2702/2000;
    
	 
	30.	
    Additional Act to the Contract of Association and
    Statutes of MobiFon S.A. — authenticated by public
    notary on April 05, 2001 — authentication minutes
    no.1413/2001;
    
	 
	31.	
    Additional Act to the Contract of Association and
    Statutes of MobiFon S.A. — authenticated by public
    notary on April 05, 2001 — authentication minutes
    no.1414/2001;
    
	 
	32.	
    Additional Act to the Contract of Association and
    Statutes of MobiFon S.A. — authenticated by public
    notary on February 12, 2001 — authentication
    minutes no.488/2001;
    
	 
	33.	
    Additional Act to the Contract of Association and
    Statutes of MobiFon S.A. — authenticated by public
    notary on February 12, 2001 — authentication
    minutes no.489/2001;
    
	 
	34.	
    Additional Act to the Contract of Association and
    Statutes of MobiFon S.A. — authenticated by public
    notary on April 05, 2001 — authentication minutes
    no.1412/2001;
    
	 
	35.	
    Additional Act to the Contract of Association and
    Statutes of MobiFon S.A. — authenticated by public
    notary on July 27, 2001 — authentication minutes
    no.4254/2001
    
	 
	36.	
    Additional Act to the Contract of Association and
    Statutes of MobiFon S.A. — authenticated by public
    notary on July 27, 2001 — authentication minutes
    no.4255/2001;
    

 

		
	37.	
    Additional Act to the Contract of Association and
    Statutes of MobiFon S.A. — authenticated by public
    notary on November 8, 2001 — authentication
    minutes no.6248/2001;
    
	 
	38.	
    Additional Act to the Contract of Association and
    Statutes of MobiFon S.A. — authenticated by public
    notary on November 8, 2001 — authentication
    minutes no.6249/2001;
    
	 
	39.	
    Additional Act to the Contract of Association and
    Statutes of MobiFon S.A. — authenticated by public
    notary on January 23, 2002 — authentication
    minutes no.236/2002;
    
	 
	40.	
    Additional Act to the Contract of Association of
    MobiFon S.A. — authenticated by public notary on
    March 5, 2002 — authentication minutes
    no.875/2002;
    
	 
	41.	
    Additional Act to the Contract of Association and
    Statutes of MobiFon S.A. — authenticated by public
    notary on April 24, 2002 — authentication minutes
    no.1803/2002;
    
	 
	42.	
    Additional Act to the Contract of Association and
    Statutes of MobiFon S.A. — authenticated by public
    notary on July 25, 2002 — authentication minutes
    no.3420/2002;
    
	 
	43.	
    Additional Act to the Contract of Association and
    Statutes of MobiFon S.A. — authenticated by public
    notary on July 25, 2002 — authentication minutes
    no.3421/2002.
    

 

ANNEX A-1 TO SCHEDULE A — MAJOR
LEASES

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
															Rent/month as per		
			Loc.						Date of		Termination		Option		Contract		Total
	Town		Name		Landlord		Duration (years)		contract		date		(years)		w/o VAT		(entire duration)
	
		
		
		
		
		
		
		
		

	
    
    Bacau
    

    	 	 	MSC nou	 	 	 	Delta Intensive Trade	 	 	 	10	 	 	 	1-Jul-02	 	 	 	1-Jul-12	 	 	 	5	 	 	$	9,600	 	 	 	1,152,000	 
	
    
    Cluj
    

    	 	 	MSC #4	 	 	 	Compania de Informatica Aplicata SA	 	 	 	20	 	 	 	1-Jan-98	 	 	 	31-Dec-18	 	 	 	 	 	 	$	7,850	 	 	 	1,554,300	 
	
    
    Timisoara
    

    	 	 	MSC #3	 	 	 	Inst. Chimie	 	 	 	25	 	 	 	8-Sep-97	 	 	 	7-Sep-22	 	 	 	 	 	 	$	2,500	 	 	 	607,500	 
	
    
    Brasov
    

    	 	 	RSO	 	 	 	SIF Transilvania Brasov	 	 	 	5	 	 	 	19-Jul-99	 	 	 	18-Jul-04	 	 	 	 	 	 	$	6,887	 	 	 	168,732	 
	
    
    Brasov
    

    	 	 	MSC Brasov	 	 	 	Delta Intensive Trade	 	 	 	10 years and 5  months	 	 	 	1-Jul-01	 	 	 	26-Nov-11	 	 	 	 	 	 	$	11,820	 	 	 	1,539,844	 
	
    
    Brasov
    

    	 	 	Call Center	 	 	 	Delta Intensive Trade	 	 	 	10 years and 4  months	 	 	 	1-Aug-01	 	 	 	26-Nov-11	 	 	 	 	 	 	$	15,000	 	 	 	1,984,500	 
	
    
    Constanta
    

    	 	 	RSO	 	 	 	Com Auto srl	 	 	 	5	 	 	 	1-Jan-99	 	 	 	31-Dec-04	 	 	 	 	 	 	$	9,432	 	 	 	282,960	 
	
    
    Craiova
    

    	 	 	RSO	 	 	 	Marex srl	 	 	 	5	 	 	 	1-May-99	 	 	 	30-Apr-04	 	 	 	 	 	 	$	4,950	 	 	 	108,900	 
	
    
    Bucharest
    

    	 	 	Connex Center	 	 	 	Avrig 35 SA	 	 	 	7	 	 	 	5-Dec-01	 	 	 	1-Dec-10	 	 	 	2	 	 	$	173,200	 	 	 	14,029,000	 
	
    
    Bucharest
    

    	 	 	MSC	 	 	 	DBC - Delta Trade Intensive	 	 	 	 	 	 	 	 	 	 	 	30-Oct-07	 	 	 	 	 	 	$	80,912	 	 	 	5,865,152	 
	
    
    Bucharest
    

    	 	 	Wareh	 	 	 	DBC 2	 	 	 	 	 	 	 	 	 	 	 	30-Oct-07	 	 	 	 	 	 	$	82,400	 	 	 	5,928,172	 
	
    
    Bucharest
    

    	 	 	CS	 	 	 	Paneuro International	 	 	 	2	 	 	 	15-Mar-00	 	 	 	15-Mar-04	 	 	 	1	 	 	$	14,000	 	 	 	287,000	 
	
    
    Bucharest
    

    	 	 	MSC	 	 	 	Avrig 35 SA	 	 	 	10	 	 	 	5-Oct-99	 	 	 	4-Oct-09	 	 	 	 	 	 	$	342,052	 	 	 	32,634,945	 
	
    
    Bucharest
    

    	 	 	Wareh	 	 	 	Comautosport SA	 	 	 	3	 	 	 	16-Apr-01	 	 	 	15-Apr-04	 	 	 	 	 	 	$	16,952	 	 	 	364,468	 
	
    
    Bucharest
    

    	 	 	CS	 	 	 	Piaston Romania	 	 	 	3 years 6 months	 	 	 	25-Apr-01	 	 	 	25-Oct-04	 	 	 	 	 	 	$	9,000	 	 	 	252,000	 
	
    
    Bucharest
    

    	 	 	AO	 	 	 	CBC - NOVA TRADE	 	 	 	 	 	 	 	1-Jun-02	 	 	 	31-Dec-03	 	 	 	 	 	 	$	181,208	 	 	 	3,261,744	 

 

ANNEX A-2 TO SCHEDULE A — MATERIAL
AGREEMENTS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
													Value		
	No.		Contract No.		Supplier		Contract Date		Contract Description		Period		(USD)		Comments
	
		
		
		
		
		
		
		

	 	1	 	 	
    Contract — signed only in Romanian
    	 	 	ADVANTAGE SOFTWARE FACTORY	 	 	 	21-Dec-02	 	 	Implementation contract for Collection System	 	 	02.09.2003	 	 	 	550,000	 	 	 	Fixed value in contract	 
	 	2	 	 	
    Supply contract FN00-207 & Amendament
    	 	 	Breezecom / ALVARION	 	 	 	8-Apr-00	 	 	 	Frame contract	 	 	 	5/8/2003	 	 	 	4,100,000	 	 	 	Payments value -ytd	 
	 	 	 	 	 	 	 	Contract Implementare	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	3	 	 	 	 	 	AMDOCS	 	 	 	9-Jul-02	 	 	 	Billing System+Licente	 	 	 	4,600,000	 	 	Fixed value in contract	 	 	 	 
	 	4	 	 	
    Telecommunication Service Provider Agreement
    	 	 	CISCO SYSTEMS	 	 	 	5-Jun-01	 	 	 	Frame contract	 	 	 	12-Oct-06	 	 	 	4,079,360	 	 	 	Payments value -ytd	 
	 	 	 	 	
    Supply and Installation Contract of CMG
    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	5	 	 	
    Products
    	 	 	CMG	 	 	 	25-Jul-97	 	 	 	Frame contract	 	 	 	2,981,298	 	 	Payments value -ytd	 	 	 	 
	 	 	 	 	
    Voice Messaging System Purchase Order &
    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	6	 	 	
    License Agreement
    	 	 	COMVERSE (ex EFRAT	)	 	 	16-Apr-97	 	 	 	Frame contract	 	 	 	8,402,014	 	 	Payments value -ytd	 	 	 	 
	 	7	 	 	
    GSM System Service Contract
    	 	 	ERICSSON Radio System AB	 	 	 	1-Feb-97	 	 	 	Frame contract	 	 	 	Dec-06	 	 	 	266,018,723	 	 	 	Payments value -ytd	 
	 	 	 	 	
    Amendament nr.3/06.08.2001 to the GSM
    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	8	 	 	
    System Service Contract
    	 	 	ERICSSON Radio System AB	 	 	 	2-Mar-97	 	 	 	Support contract	 	 	 	2,070,268	 	 	 	 	 	 	 	 	 
	 	9	 	 	
    Implementation Contract
    	 	 	ERICSSON ROMANIA SRL	 	 	 	12-Oct-01	 	 	 	One time order	 	 	 	20-Jul-02	 	 	 	1,787,392	 	 	 	Payments value ytd	 
	 	10	 	 	
    Act Adit No 5 to the Agreement no.0906/2000
    	 	 	GTS ROMANIA SRL	 	 	 	9-Apr-02	 	 	 	Frame contract	 	 	 	9-Nov-02	 	 	 	2,496,000	 	 	 	Payments value ytd	 
	 	 	 	 	
    Supply contract (Hard & soft) - signed only
    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	11	 	 	
    in Romanian
    	 	 	HEWLETT PACKARD ROMANIA SRL	 	 	 	9-Jul-01	 	 	 	Frame contract	 	 	 	2,278,702	 	 	Payments value ytd	 	 	 	 
	 	12	 	 	
    Country Transaction Document for Romania
    	 	 	IBM ROMANIA	 	 	 	29-Mar-01	 	 	 	Frame contract	 	 	 	1,265,151	 	 	Payments value ytd	 	 	 	 
	 	 	 	 	
    Framework contractor agreement no.CS99005 -
    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	13	 	 	
    signed only in Romanian
    	 	 	IMSAT Bucuresti	 	 	 	8-Feb-99	 	 	 	Frame Contract	 	 	 	1,277,707	 	 	Payments value ytd	 	 	 	 
	 	14	 	 	
    Supply contract E-0 5/98 & Amendament 1,2
    	 	 	BOSCH TELECOM GmbH	 	 	 	26-May-98	 	 	 	Frame contract	 	 	 	31-Dec-02	 	 	 	1,300,000	 	 	 	Payments value -ytd	 
	 	15	 	 	
    Supply contract no. M42417
    	 	 	MITSUI & CO ltd	 	 	 	9-Nov-01	 	 	 	Frame contract	 	 	 	31-Dec-02	 	 	 	2,264,360	 	 	 	Payments value -ytd	 
	 	16	 	 	
    Supply contract FN00-205
    	 	 	NERA NETWORKS	 	 	 	4-Aug-00	 	 	 	Frame contract	 	 	 	11-Jun-02	 	 	 	2,157,114	 	 	 	Payments value -ytd	 
	 	17	 	 	
    Supply contract FN01-238
    	 	 	NETRO CORPORATION	 	 	 	11-Jun-01	 	 	 	Frame contract	 	 	 	31-Dec-02	 	 	 	2,197,285	 	 	 	Payments value -ytd	 
	 	 	 	 	
    MULTISERVICE Network Equipment
    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	
    Purchase Agreement and thereof the
    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	18	 	 	
    amendments from no. 1-7
    	 	 	NORTEL NETWORKS IRELAND	 	 	 	28-Nov-00	 	 	 	Frame contract	 	 	 	31-Dec-02	 	 	 	25,935,272	 	 	 	Payments value ytd	 
	 	19	 	 	
    Agreement
    	 	 	SAS INSTITUTE GMBH	 	 	 	12-Jul-01	 	 	 	DW Contract	 	 	 	 	 	 	 	787,850	 	 	 	Fixed value in contract	 
	 	20	 	 	
    Supply Agreement
    	 	 	SEMA UK LTD	 	 	 	18-Jul-01	 	 	 	CRM Contract	 	 	 	 	 	 	 	2,124,987	 	 	 	Fixed value in contract	 
	 	21	 	 	
    Agreement for the Supply of Systems
    	 	 	SCHLUMBERGER SEMA	 	 	 	11-Jun-02	 	 	 	One Order Contract	 	 	 	 	 	 	 	941,440	 	 	 	Fixed value in contract	 
	 	 	 	 	
    Agreement for the supply of CABS 2000
    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	22	 	 	
    1802/CG/RC/CW
    	 	 	SEMA GROUP UK LTD	 	 	 	4-Apr-97	 	 	 	CABS 2000 Billing System	 	 	 	 	 	 	 	15,713,551	 	 	 	Payments value ytd	 
	 	 	 	 	
    CABS 2000 Support Agreement & Business
    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	23	 	 	
    Support Services Agreement
    	 	 	SEMA GROUP UK LTD	 	 	 	4-Apr-97	 	 	 	Support Contract	 	 	 	 	 	 	 	903,768	 	 	 	Payments value ytd	 
	 	24	 	 	
    IN System Equipment and Services Contract
    	 	 	SIEMENS	 	 	 	25-Oct-00	 	 	 	Frame contract	 	 	 	 	 	 	 	13,915,662	 	 	 	Payments value ytd	 
	 	 	 	 	
    Ammendment 1 of IN System Equipment and
    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	
    Services Contract
    	 	 	SIEMENS	 	 	 	25-Oct-01	 	 	 	GPRS Frame Contract	 	 	 	 	 	 	 	2,208,054	 	 	 	Payments value ytd	 
	 	 	 	 	
    Amend. no 2
    	 	 	SIEMENS	 	 	 	23-Oct-01	 	 	 	Frame contract	 	 	 	 	 	 	 	834,855	 	 	 	Payments value ytd	 
	 	 	 	 	
    Addendum, Continuation to Maintenance and
    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	25	 	 	
    Support Contract from 07.12.2000
    	 	 	SICAP LTD	 	 	 	27-Jun-02	 	 	 	Contract suport tehnic	 	 	 	01.01.2004	 	 	 	380,600	 	 	 	Payments value ytd	 
	 	26	 	 	
    SICAP Addendum
    	 	 	SICAP LTD	 	 	 	11-Jan-02	 	 	 	One Order Contract	 	 	 	 	 	 	 	638,000	 	 	 	Fixed value in contract	 
	 	27	 	 	
    Contract (International signalling)
    	 	 	SWISSCOM	 	 	 	21-May-99	 	 	 	Frame contract	 	 	 	not specified	 	 	 	1,408,691	 	 	 	 	 
	 	 	 	 	
    Maintenance & Support Contract for SICAP
    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	28	 	 	
    Modules
    	 	 	SICAP LTD	 	 	 	26-Apr-01	 	 	 	Frame contract	 	 	 	 	 	 	 	4,912,214	 	 	 	Payments value ytd	 
	 	 	 	 	
    VODAFONNE GLOBAL PLATFORM and
    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	29	 	 	
    Internet Portal Services Agreement
    	 	 	INTERNET SERVICES	 	 	 	26-Jul-01	 	 	 	Frame contract	 	 	 	 	 	 	 	1,152,848	 	 	 	Payments value ytd	 
	 	30	 	 	
    Amendment to Supply Agreement of 06.05.1999
    	 	 	Nokia Corporation	 	 	 	19-Jun-02	 	 	 	Frame contract	 	 	 	1 year	 	 	 	10,424,973	 	 	 	 	 
	 	31	 	 	
    Distributorship Agreement
    	 	 	Ericsson Mobile Communications	 	 	 	16-Dec-97	 	 	 	Frame contract	 	 	 	no	 	 	 	5,637,435	 	 	 	 	 
	 	32	 	 	
    GSM Mobile Telephone Supply Agreement
    	 	 	Siemens AE	 	 	 	7-Aug-01	 	 	 	Frame contract	 	 	 	1 year	 	 	 	8,190,222	 	 	 	 	 
	 	 	 	 	
    Amendment to Purchase Agreement of
    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	33	 	 	
    01.01.2000
    	 	 	Schlumberger Systems	 	 	 	19-Feb-02	 	 	 	Frame contract	 	 	 	1 year	 	 	 	6,941,450	 	 	 	 	 
	 	 	 	 	
    contract for media services - Agency of
    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	34	 	 	
    Record - signed only in Romanian
    	 	 	BV McCANN Advertising	 	 	 	25-Feb-02	 	 	 	Frame contract	 	 	 	1 year	 	 	 	3,411,471	 	 	 	 	 
	1,11,
13,35	 	
    Contracts that must be translated in English
    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

SCHEDULE B

FORM OF COMPLIANCE CERTIFICATE

To:  Nordic Investment Bank

Date:

Dear Sirs,

We refer to the loan agreement dated, 27 August
2002 (the “Loan Agreement”) between Mobifon S.A. (the
“Borrower”) and Nordic Investment Bank
(“NIB”) as lender.

Terms defined in the Loan Agreement shall bear
the same meaning herein.

We confirm that:

[Insert details of financial conditions to be
certified.]

	 	 	 	 	 
	
    
    [Signed:
    

    	 	
    
Director
    	 	
    

    Director
    

or

for and on behalf of

[name of Auditors of the Borrower]Ex-4.3

 

Exhibit 4.3

Execution Copy

LOAN AGREEMENT

between

MOBIFON S.A.

and

EXPORT DEVELOPMENT CANADA

Dated 27 August 2002

 

LOAN AGREEMENT

     AGREEMENT, dated 27 August 2002 between MOBIFON S.A., a joint stock company
organised and existing under the laws of Romania (the “Borrower”), and EXPORT
DEVELOPMENT CANADA (“EDC”).

ARTICLE I —  DEFINITIONS

Section 1.01 Definitions

Wherever used in this Agreement, including the Schedules and Exhibits, unless
the context otherwise requires, the following terms have the following
meanings:

	 	 	 
	“ABN Working Capital Agreement”	 	
means the Working Capital Agreement dated
February 19, 1999 between the Borrower and
ABN AMRO Bank Romania S.A. pursuant to
which ABN AMRO Bank Romania S.A. has
agreed to make available to the Borrower a
credit facility of up to $10,000,000 on
the terms and conditions thereof as
subsequently modified from time to time.
	 
	“Acknowledgement and
Non-Disturbance Agreement”	 	
means the agreement between Avrig 35 S.A.,
HVB Bank Romania S.A., Rhombus Asset
Management Inc., F&C International B.V.,
the Borrower and the Senior Lenders with
respect to, inter alia, the Lease
Agreement dated October 4, 1999 between
Avrig 35 S.A. as lessor and the Borrower
as lessee.
	 
	“Affiliate”	 	
means, with respect to any person, any
other person directly or indirectly
controlling, controlled by, or under
common control with such person.
	 
	“Agency Agreement”	 	
means the agency agreement between EDC,
EBRD, NIB, the Agent and the Borrower
setting out, inter alia, the obligations
of the Agent in respect of the EDC Loan,
the EBRD Loan and the NIB Loan.
	 
	“Agent”	 	
means ABN AMRO Bank N.V. or such other
financial institution as EBRD may notify
to the Borrower from time to time as being
the agent for EDC, EBRD and NIB under the
Agency Agreement.

 

 

	 	 	 
	“Assignment of Receivables”	 	
means the instrument pursuant to which the
Borrower assigns all of its right, title,
interest and benefit in and claims
relating to accounts receivable to the
Secured Parties for the purpose of
securing, inter alia, the obligations of
the Borrower hereunder, in form and
substance satisfactory to EDC.
	 
	“Assignment of Subordinated Debt”	 	
means the instrument pursuant to which the
right, title, interest and benefit of the
holder of any Permitted High Yield Back to
Back Debt in and to such Permitted High
Yield Back to Back Debt is pledged and/or
assigned to the Senior Lenders, for the
purpose of securing, inter alia, the
obligations of the Borrower hereunder, in
accordance with Section 3.09(f) and
5.07(h), in form and substance
satisfactory to EDC.
	 
	“Auditors”	 	
means such firm of independent accountants
as the Borrower may from time to time
appoint as its auditors in accordance with
Section 5.05(c)
	 
	“Authorised Signatory”	 	
means, in relation to the Borrower, any
person who is duly authorised (in such
manner as may be reasonably acceptable to
EDC) and in respect of whom EDC has
received a certificate signed by the Chief
Executive Officer or another Authorised
Signatory of the Borrower setting out the
name and signature of such person and
confirming such person’s authority to act.
	 
	“Available Cash Balance”	 	
means, at any time, the difference between
(a) the USD Equivalent Amount of the
aggregate balance at such time of all Cash
and Cash Equivalents and (b) the Minimum
Cash Balance.
	 
	“Base Case Financial Forecast”	 	
means the financial projections of the
Borrower approved by the Borrower by a
certificate of an Authorised Signatory
addressed to the Senior Lenders dated the
date hereof.
	 
	“Borrower Accounts”	 	
means all bank accounts of the Borrower,
other than the Employee Personal Guarantee
Accounts.

- 2 -

 

	 	 	 
	“Borrower Power of Attorney”	 	
means the power of attorney granted by the
Borrower to the Senior Lenders in respect
of the Financing Agreements in form and
substance satisfactory to the Senior
Lenders.
	 
	“Business Day”	 	
means a day (other than a Saturday or
Sunday) on which commercial banks and
foreign exchange markets are open for the
transaction of general business in the
interbank market for Dollars in London,
England, on which commercial banks and
foreign exchange markets settle payments
in Dollars in New York and on which the
Trans-European Automated Real-Time Gross
Settlement Express Transfer (TARGET)
System is open.
	 
	“Capital Expenditure”	 	
means any expenditure which should be
treated as a capital expenditure in the
Financial Statements of the Borrower in
accordance with Generally Accepted
Accounting Principles.
	 
	“Cash and Cash Equivalents”	 	
means, at any time, the sum of:

	 	 	 	 	 
	 	 	
(a)
	 	cash in the Borrower Accounts,
including demand and term deposits with
maturity of not more than 90 days;
	 
	 	 	
(b)
	 	cash in safe; and
	 
	 	 	
(c)
	 	Permitted Treasury Instruments.

	 	 	 
	“Charter”	 	
means, in respect of any company,
corporation, partnership, enterprise,
governmental agency or other entity, its
founding act, articles of incorporation
and bylaws, memorandum and articles of
association, contract of association,
constitutive act, statutes or similar
instrument, as applicable, and in respect
of the Borrower includes, without
limitation, the Contract of Association
and the Statutes.

- 3 -

 

	 	 	 
	“Citibank Working Capital
Agreement”	 	
means the Working Capital Agreement
between Citibank Romania S.A. and the
Borrower dated March 25, 1999 pursuant to
which Citibank Romania S.A. has agreed to
make available to the Borrower a credit
facility of up to $10,000,000 on the terms
and conditions thereof, as subsequently
modified from time to time.
	 
	“ClearWave”	 	
means ClearWave N.V., a corporation
organized and existing under the laws of
the Netherlands.
	 
	“ClearWave Holdings”	 	
means ClearWave Holdings BV, a corporation
organized and existing under the laws of
the Netherlands.
	 
	“ClearWave’s Majority Shareholder”	 	
means
	 
	 	 	
(i) Telesystem International Wireless
Inc., a corporation organised and existing
under the laws of Canada, and
	 
	 	 	
(ii) any Recognised Telecommunications
Operator which acquires pursuant to
Section 4.02(b) of the Share Retention and
Subordination Deed (either directly or
indirectly) an Economic Interest or a
Controlling Interest of more than 50% in
ClearWave.
	 
	“Compliance Certificate”	 	
means a certificate substantially in the
form of Schedule B.
	 
	“Conditional Discharge”	 	
has the meaning set out in Section 4.01(p)
	 
	“Conditional Discharge Escrow
Agent”	 	
means counsel to the Senior Lenders,
acting pursuant to the Conditional
Discharge Escrow Instructions as agent on
behalf of the Senior Lenders, the EKN
Lenders and the other parties having the
benefit of the Existing Security for the
purpose of holding in escrow the
Conditional Discharge delivered in
accordance with Section 4.01(p) until
receipt of the Existing Loans Repayment
Confirmations.

- 4 -

 

	 	 	 
	“Conditional Discharge Escrow
Instructions”	 	
means the letter of instructions from,
inter alia, the Senior Lenders and the EKN
Lenders to the Conditional Discharge
Escrow Agent instructing the Conditional
Discharge Escrow Agent with respect to the
holding and release of the Conditional
Discharge, in form and substance
satisfactory to EDC.
	 
	“Contract of Association”	 	
means the contract of association of the
Borrower dated November 22, 1996, as
amended by additional acts approved prior
to the date hereof and registered in the
Trade Register in Bucharest, Romania,
among the Shareholders regarding inter
alia the establishment and shareholdings
of the Borrower.
	 
	“Controlled Affiliate”	 	
means, with respect to any person, any
Affiliate of such person which meets each
of the following conditions: (i) such
person owns (directly or indirectly
through a Subsidiary in which such person
owns an Economic Interest and a
Controlling Interest of not less than 75%)
an Economic Interest in such Affiliate of
not less than 75%, (ii) such person owns
(directly or indirectly through a
Subsidiary in which such person owns an
Economic Interest and a Controlling
Interest of not less than 75%) a
Controlling Interest in such Affiliate of
not less than 75%, (iii) such person at
all times maintains and exercises
Management Control over such Affiliate,
and (iv) such Affiliate owns (directly or
indirectly) an Economic Interest or a
Controlling Interest in the Borrower.
	 
	“Controlling Interest”	 	
means a percentage legal and beneficial
ownership interest held by a person in the
aggregate of all voting rights exercisable
in respect of the share capital of another
person.

- 5 -

 

	 	 	 
	“Controlling Shareholders”	 	
means
	 
	 	 	
(1)  ClearWave,
	 
	 	 	
(2)  Vodafone,
	 
	 	 	
(3)  any Joint Affiliate, and
	 
	 	 	
(4)  any Recognised Telecommunications
Operator which acquires pursuant to
Section 4.01(c) of the Share Retention and
Subordination Deed (either directly or
indirectly) (i) an Economic Interest or a
Controlling Interest of more than 50% in
the Borrower or, (ii) in the case of a
transfer, sale or assignment by Vodafone,
Vodafone’s entire Economic Interest and
Controlling Interest in the Borrower.
	 
	“Cooperation Agreement”	 	
means the agreement dated November 29,
1996 between TIWC and Vodafone Europe
(formerly Airtouch Europe B.V.) entitled
“Romanian GSM Co-operation Agreement” in
respect of shareholdings in the Borrower.
	 
	“Curative Equity”	 	
has the meaning set out in Section 5.10(a)
	 
	“Current Assets”	 	
means the aggregate (as of the date of
calculation) of the Borrower’s cash,
marketable securities, trade and other
receivables and inventories realisable
within one year from such date of
calculation and any other items which are
“current assets” under Generally Accepted
Accounting Principles.
	 
	“Current Liabilities”	 	
means the aggregate (as of the date of
calculation) of all liabilities of the
Borrower falling due on demand or within
one year, including the portion of
Long-term Debt falling due within one
year.
	 
	“Debt”	 	
means, with respect to any person, all
obligations or liabilities of such person,
whether incurred as principal or surety
and whether present, future, actual or
contingent, for the payment or repayment
of money including without limitation
payables and accrued expenses and
including, without limitation:

- 6 -

 

	 	 	 	 	 
	 	 	
(a)
	 	any amounts payable by such person
under capital leases or similar
arrangements over their respective
periods;
	 
	 	 	
(b)
	 	any credit to such person from a
supplier of goods or under any installment
purchase or other similar arrangement; and
	 
	 	 	
(c)
	 	any liabilities and obligations of
third parties to the extent that they are
guaranteed by such person or such person
has otherwise assumed or become liable for
the payment of such liabilities or
obligations or to the extent that they are
secured by any Lien upon property owned by
such person whether or not such person has
assumed or become liable for the payment
of such liabilities or obligations.

	 	 	 
	“Declared Amount”	 	
has the meaning ascribed thereto in
Section 7.02.
	 
	“Default Interest Period”	 	
means, with respect to any amount overdue
under this Agreement, a period commencing
on the day on which such payment becomes
due or, as the case may be, on the last
day of the previous Default Interest
Period with respect to such overdue
amount, and ending on a Business Day
selected by EDC, acting reasonably.
	 
	“Deferred Distribution Amount”	 	
means, in respect of each Financial Year,
the positive amount, if any, by which
	 
	 	 	
(i) the aggregate of all Distributions
which the Borrower is permitted to make in
respect of such Financial Year in
accordance with Sections 6.01(a)(3)(A) and
6.01(a)(3)(B),
	 
	 	 	
exceeds
	 
	 	 	
(ii) the amount of Distributions which the
Borrower is permitted to make in
accordance with Romanian law in such
Financial Year as notified by the Borrower
to EDC pursuant to Section 5.13(l).

- 7 -

 

	 	 	 
	“Disbursement”	 	
means the disbursement of any portion of
the EDC Loan from time to time pursuant to
Section 3.03 or, as the context may
require, the principal amount thereof from
time to time outstanding.
	 
	“Distribution”	 	
has the meaning set out in Section 6.01.
	 
	“Distribution Test Period”	 	
has the meaning set out in Section
6.01(a)(3)(A).
	 
	“Dollars” and “$”	 	
means the lawful currency of the United
States of America.
	 
	“EBITDA”	 	
means, with respect to any period of
calculation, earnings before interest,
tax, depreciation and amortisation,
calculated as (for such period of
calculation) the sum of: (1) the net
income (or deficit) of the Borrower (less
extraordinary gains plus extraordinary
losses) for such period; plus (2)
translation losses less translation gains
for such period; plus (3) income tax and
provisions for income tax for such period;
plus (4) Net Interest Expense for such
period; plus (5) all amounts in respect of
depreciation and amortisation for such
period, all calculated in accordance with
Generally Accepted Accounting Principles.
	 
	“EBRD”	 	
means the European Bank for Reconstruction
and Development.
	 
	“EBRD A Loan”	 	
means the “A Loan” as defined in the EBRD
Loan Agreement.
	 
	“EBRD B Loan”	 	
means the “B Loan” as defined in the EBRD
Loan Agreement.
	 
	“EBRD Loan”	 	
means the loan to be provided by EBRD to
the Borrower pursuant to the EBRD Loan
Agreement.
	 
	“EBRD Loan Agreement”	 	
means the loan agreement date on or about
the date hereof between EBRD and the
Borrower.
	 
	“Economic Interest”	 	
means a percentage legal and beneficial
ownership interest held by a person in the
aggregate of all classes of the issued and
outstanding share capital of another
person.

- 8 -

 

	 	 	 
	“EDC”	 	
means Export Development Canada.
	 
	“EDC Loan”	 	
means the aggregate of the Tranche I EDC
Loan and the Tranche II EDC Loan.
	 
	“EKN Lenders”	 	
means, collectively, all financial
institutions which are parties, as
lenders, to the Existing EKN Loan
Agreement on the date hereof.
	 
	“Electronic Archive”	 	
means the Romanian electronic registry of
security interests in personal property
established and organised pursuant to the
Romanian Security Law.
	 
	“Employee Personal Guarantee
Accounts”	 	
means the bank accounts of the Borrower
which from time to time are required under
Romanian law to be opened in connection
with the granting of guarantees by
employees of the Borrower which are
involved in controlling inventory, which
accounts are held with banks in Romania
which are duly authorized under Romanian
law to hold such accounts.
	 
	“Euro”	 	
means the lawful currency of the member
states of the European Union that adopt
the single currency in accordance with the
Treaty Establishing the European
Community, as amended by the Treaty on
European Union.
	 
	“Event of Default”	 	
means any one of the events or occurrences
specified in Section 7.01.
	 
	“Excess Cash Flow”	 	
means, with respect to any period of
calculation, the greater of

	 	 	 	 	 
	 	 	
(i)
	 	zero; and
	 
	 	 	
(ii)
	 	the Borrower’s EBITDA for such period:

	 	 	 	 	 

- 9 -

 

	 	 	 	 	 
	 	 	
(a)
	 	less the aggregate, calculated as at
the end of such period of calculation, of
all Capital Expenditures and UMTS License
Costs paid in such period of calculation
(other than any Capital Expenditures and
UMTS License Costs funded from proceeds of
the Tranche II Loan) during such period of
calculation;
	 
	 	 	
(b)
	 	less the increase (or plus the
decrease) in Working Capital of the
Borrower during such period of
calculation;
	 
	 	 	
(c)
	 	less all income taxes paid by the
Borrower during such period of
calculation; and
	 
	 	 	
(d)
	 	less the Borrower’s Total Financial
Debt Service (other than in respect of the
Existing Loans) plus the interest received
by the Borrower on its Current Assets, in
each case during such period of
calculation.

	 	 	 
	“Excess Cash Mandatory Repayment
Date”	 	
has the meaning set out in Section 3.09(d)
	 
	“Existing EBRD Loan Agreement”	 	
means the amended and restated loan
agreement dated January 20, 1999 between
the Borrower and EBRD, as amended.
	 
	“Existing EDC Loan Agreement”	 	
means the amended and restated loan
agreement dated January 20, 1999 between
the Borrower and EDC, as amended.
	 
	“Existing EKN Loan Agreement”	 	
means the credit facility agreement dated
January 20, 1999, as amended, between the
EKN Lenders, ABN AMRO Bank N.V., as
arranger, facility agent and security
agent for the EKN Lenders and the Borrower
pursuant to which the EKN Lenders have
provided to the Borrower a credit facility
in an aggregate principal amount of
$65,000,000.

- 10 -

 

	 	 	 
	“Existing Loan Agreements”	 	
means, collectively, the Existing EDC Loan
Agreement, the Existing EBRD Loan
Agreement, the Existing NIB Loan
Agreement, the Existing EKN Loan Agreement
and the Existing Subordinated Loan
Agreement.
	 
	“Existing Loans”	 	
means the loans made to the Borrower under
the Existing Loan Agreements.
	 
	“Existing Loans Indebtedness”	 	
means the aggregate principal amount of
the Existing Loans from time to time
outstanding and all interest, expenses,
fees and other amounts owing to the Senior
Lenders and the EKN Lenders under the
Existing Loan Agreements and the Financing
Agreements (as defined in the Existing EDC
Loan Agreement)
	 
	“Existing Loans Repayment
Confirmations”	 	
means the confirmations provided by UBS AG
(as agent on behalf of the Senior
Lenders) and ABN AMRO Bank N.V. (as agent
on behalf of, inter alia, the EKN Lenders)
to the Borrower and the Conditional
Discharge Escrow Agent pursuant to which
such agents confirm receipt of payment
representing full repayment of the
Existing Loans Indebtedness, which
confirmations shall be in the form of
Annexes A and B to the Conditional
Discharge Escrow Instructions.
	 
	“Existing Loans Repayment Date”	 	
means the date on which the “Payment Time”
(as defined in the Conditional Discharge
Escrow Instructions) occurs.
	 
	“Existing NIB Loan Agreement”	 	
means the amended and restated loan
agreement dated January 20, 1999, between
the Borrower and NIB, as amended.
	 
	“Existing Security”	 	
means the security created pursuant to the
Security Documents (as defined in the
Existing EDC Loan Agreement) to secure,
inter alia, the Borrower’s obligations to
the Senior Lenders under the Existing Loan
Agreements and the other Financing
Agreements (as defined in the Existing EDC
Loan Agreement)

- 11 -

 

	 	 	 
	“Existing Security Discharge Date”	 	
means the date on which the Existing
Security has been fully discharged to the
satisfaction of the Senior Lenders.
	 
	“Existing Subordinated Loan
Agreement”	 	
means the amended and restated
subordinated loan agreement between the
Borrower and EBRD dated January 28, 1999
pursuant to which EBRD made available to
the Borrower, subject to the terms and
conditions therein, $10 million in
subordinated debt.
	 
	“Financial Debt”	 	
means any Debt for, or in respect of:

	 	 	 	 	 
	 	 	
(a)
	 	moneys borrowed, including without
limitation, in the case of the Borrower,
any Permitted High Yield Back to Back Debt
but excluding Permitted Quasi Equity;
	 
	 	 	
(b)
	 	any amount raised by acceptance under
any acceptance credit facility;
	 
	 	 	
(c)
	 	any amount raised pursuant to any note
purchase facility or the issue of bonds,
notes, debentures, loan stock or any
similar instrument;
	 
	 	 	
(d)
	 	any amount raised pursuant to any
issue of shares which are expressed to be
redeemable at the option of the holder;
	 
	 	 	
(e)
	 	the amount of any liability in respect
of any lease or hire-purchase contract
which would, in accordance with generally
accepted accounting principles in the
relevant jurisdiction be treated as a
finance or capital lease or which
otherwise is in substance a financing
lease;
	 
	 	 	
(f)
	 	the amount of any liability in respect
of any advance or deferred purchase
agreement if one of the primary reasons
for entering into such agreement is to
raise finance;

- 12 -

 

	 	 	 	 	 
	 	 	
(g)
	 	any receivables sold or discounted
(other than on a non-recourse basis);
	 
	 	 	
(h)
	 	any agreement or option to reacquire
an asset if one of the primary reasons for
entering into such agreement or option is
to raise finance;
	 
	 	 	
(i)
	 	any Debt for or in respect of any
credit facility or financial
accommodation;
	 
	 	 	
(j)
	 	any guarantee, indemnity, bond,
standby letter of credit or any other
instrument issued in connection with the
performance of any contract or other
obligation;
	 
	 	 	
(k)
	 	any amount raised under any other
transaction (including any forward sale or
purchase agreement) which, in accordance
with generally accepted accounting
principles in the relevant jurisdiction,
has the commercial effect of a borrowing;
and
	 
	 	 	
(l)
	 	the amount of any liability in respect
of any guarantee or indemnity for any of
the items referred to in paragraphs (a) –
(k) above.

	 	 	 
	“Financial Statements”	 	
means the financial statements (including
a balance sheet, income statement, cash
flow statement and statement of changes in
equity, and notes thereon) of the Borrower
prepared in accordance with Generally
Accepted Accounting Principles if prepared
in Dollars and in accordance with RAS if
prepared in Lei.
	 
	“Financial Year”	 	
means the period commencing each year on
January 1, and ending on the following
December 31, or such other period as the
Borrower may, with EDC’s consent, from
time to time designate as the accounting
year of the Borrower.
	 
	“Financing Agreements”	 	
means, collectively:

	 	 	 	 	 
	 	 	(a)	 	
this Agreement;

- 13 -

 

	 	 	 	 	 
	 	 	(b)	 	
the EBRD Loan Agreement;
	 
	 	 	(c)	 	
the NIB Loan Agreement;
	 
	 	 	(d)	 	
the Agency Agreement;
	 
	 	 	(e)	 	
the Security Documents;
	 
	 	 	(f)	 	
the Security Sharing and Intercreditor
Agreement;
	 
	 	 	(g)	 	
the Share Retention and Subordination
Deed;
	 
	 	 	(h)	 	
the Borrower Power of Attorney;
	 
	 	 	(i)	 	
each Shareholder Power of Attorney;
	 
	 	 	(j)	 	
the Acknowledgement and Non
Disturbance Agreement;
	 
	 	 	(k)	 	
the Disbursement applications referred
to in Section 3.03; and
	 
	 	 	(l)	 	
any other agreements entered into
between the Borrower or any other party,
on the one hand, and any of the Senior
Lenders or the Agent, on the other hand,
and notices, certificates and applications
issued by the Borrower or any other party
to any of the Senior Lenders, in
connection with this Agreement or any of
the other Financing Agreements or the
transactions contemplated by this
Agreement or any of the other Financing
Agreements.

	 	 	 
	“Free Cash Flow”	 	
means, for any period of calculation,
EBITDA minus income tax paid, minus
increases (or plus decreases) in Working
Capital during such period minus all
Capital Expenditures and UMTS License
Costs for such period.
	 
	“Generally Accepted Accounting
Principles”	 	
means accounting principles as generally
accepted in the United States of America
with respect to the preparation of
financial statements, as consistently
applied.

- 14 -

 

	 	 	 
	“GSM”	 	
means the global system for wireless
mobile communications as defined by the
International Telecommunications Union.
	 
	“GSM License”	 	
means the license for provision in Romania
of GSM telecommunications services as
granted on November 29, 1996 to the
Borrower by the Ministry as amended and
restated on December 16, 1998, which
license terminates no earlier than
November 29, 2011, as such license may be
further amended, supplemented, restated,
novated or assigned from time to time.
	 
	“Hedge Provider”	 	
means any financial institution which is a
counterparty under any Hedging Agreement
with the Borrower.
	 
	“Hedging Agreements”	 	
means, any agreements entered into by the
Borrower for the purpose of interest rate
or currency hedging, which are permitted
under Section 6.04, which comply with the
Hedging Plan and which are based on ISDA
documentation.
	 
	“Hedging Plan”	 	
means the plan of the Borrower with
respect to interest rate and currency
hedging, which plan is agreed to by the
Senior Lenders.
	 
	“High Yield Related Prepayment
Proportion”	 	
means, at any time, with respect to any
Permitted High Yield Back to Back Debt,
the proportion expressed as a percentage,
of (a) the aggregate amount of principal
of any Senior Loan prepaid or required to
be prepaid pursuant to Section 3.09(f) of
this Agreement, Section 3.10(f) of the
EBRD Loan Agreement or Section 3.09(f) of
the NIB Loan Agreement in connection with
the issuance of such Permitted High Yield
Back to Back Debt, divided by (b) the
aggregate principal amount of all Senior
Loans outstanding immediately prior to
such prepayment.

- 15 -

 

	 	 	 
	“Immovables Hypothec”	 	
means an instrument, in form and substance
acceptable to EDC, pursuant to which the
Borrower grants to the Secured Parties a
first ranking hypothec over immovable
tangible assets of the Borrower as set
forth in Section 5.07(c), together with
the title deeds for such assets.
	 
	“Insurance Assignment”	 	
means the instrument between the Borrower
and the Secured Parties pursuant to which
the Borrower’s rights, interests, and
benefits in the insurance relating to the
Borrower’s assets and business are
assigned to the Secured Parties, for the
purpose of securing, inter alia, the
obligations of the Borrower hereunder,
which instrument shall be in form and
substance satisfactory to EDC.
	 
	“Interest Determination Date”	 	
means, for any Interest Period, the date
two Business Days prior to the first day
of such Interest Period.
	 
	“Interest Payment Date”	 	
means January 14, April 14, July 14 and
October 14 in any year; provided, however,
that, if any Interest Payment Date would
otherwise fall on a day which is not a
Business Day, such Interest Payment Date
shall be changed to the next succeeding
Business Day.
	 
	“Interest Period”	 	
means, (i) for any Disbursement, the
period commencing on the date of such
Disbursement and ending on the next
Interest Payment Date and each period of
three months thereafter commencing on an
Interest Payment Date and ending on the
next Interest Payment Date, provided that,
if such Disbursement takes place less than
15 Business Days prior to the next
Interest Payment Date, the first Interest
Period for such Disbursement shall
commence on the date of such Disbursement
and end on the Interest Payment Date
following the next Interest Payment Date.
	 
	“Joint Affiliate”	 	
means any person that owns (directly or
indirectly) any Economic Interest or
Controlling Interest in the Borrower and
that meets each of the following
conditions:

- 16 -

 

	 	 	 	 	 
	 	 	
(a)
	 	the Controlling Shareholders own
(directly or indirectly through their
Controlled Affiliates) an Economic
Interest of not less than 75% in such
person;
	 
	 	 	
(b)
	 	the Controlling Shareholders own
(directly or indirectly through their
Controlled Affiliates) a Controlling
Interest of not less than 75% in such
person; and
	 
	 	 	
(c)
	 	the Controlling Shareholders (directly
or indirectly through their Controlled
Affiliates) at all times maintain and
exercise Management Control over such
person.

	 	 	 
	“Law”	 	
means any law, code, statute, treaty,
ordinance, decree, order, rule,
regulation, norms or other such
governmental, legislative, or judicial
determination.
	 
	“Lei”	 	
means the lawful currency of Romania.
	 
	“LIBOR”	 	
means, for each Interest Period, the
offered rate per annum for deposits in
Dollars which appears on Telerate Page
3750 as of 11:00 a.m., London time, on the
relevant Interest Determination Date for
the period which is closest to the
duration of such Interest Period (or, if
two periods are equally close to the
duration of such Interest Period, the
average of the two relevant rates);
provided that:

- 17 -

 

	 	 	 	 	 
	 	 	
(a)
	 	if, for any reason, LIBOR cannot be
determined at such time by reference to
Telerate Page 3750, LIBOR for such
Interest Period shall be the rate per
annum which EDC determines to be the
arithmetic mean (rounded upward, if
necessary, to the nearest 1/16%) of the
offered rates per annum for deposits in
Dollars in an amount comparable to the
portion of the EDC Loan made in Dollars
scheduled to be outstanding during such
Interest Period for a period equal to such
Interest Period which are advised to EDC
by the London offices of ABN AMRO Bank
N.V., Deutsche Bank and Rabobank; and
	 
	 	 	
(b)
	 	if EDC determines that deposits in
Dollars are not being offered in the
London interbank market in such amounts or
for such period, LIBOR for such Interest
Period shall be the cost to EDC (expressed
as a rate per annum) of funding the
portion of the EDC Loan made in Dollars
scheduled to be outstanding during such
Interest Period from whatever sources it
selects.

	 	 	 
	“Licenses”	 	
means the GSM License and, at all times
from and after the acquisition by the
Borrower of the UMTS License, the UMTS
License.
	 
	“Lien”	 	
means any mortgage, pledge, charge,
privilege, priority, hypothecation,
encumbrance, assignment, lien, attachment,
set-off or other security interest of any
kind or any other agreement or arrangement
having the effect of conferring security
upon or with respect to, or any
segregation of or other preferential
arrangement with respect to, any present
or future assets, revenues or rights,
including, without limitation, any
designation of loss payees or
beneficiaries or any similar arrangement
under any insurance policy.

- 18 -

 

	 	 	 
	“Loan Currency”	 	
means the currency in which the EDC Loan
is made, being Dollars.
	 
	“Long-term Debt”	 	
means, as of any date and with respect to
any person, any Debt of such person all or
part of which, or the final payment of
which, is due more than one year after
such date.
	 
	“Major Leases”	 	
means the lease agreements listed in
Schedule A hereto and any other lease
agreements entered into by the Borrower
pursuant to which the Borrower obtains and
occupies land or premises other than any
other Site Agreement.
	 
	“Management Control”	 	
means the right or capacity, whether
exercised or not, of a person to directly
or indirectly exercise control or
direction over the management, board of
directors or assembly of shareholders (or
similar such governing bodies) of another
person by virtue of the person holding a
Controlling Interest in the other person
of more than 50% provided such Controlling
Interest held by the person is sufficient,
if exercised, to allow such direct or
indirect control or direction of the other
person.
	 
	“Margin”	 	
means three and one-half percent (3.5%)
per annum, as adjusted in accordance with
Section 3.06(d)
	 
	“Margin Determination Date”	 	
has the meaning set out in Section 3.06(d)
	 
	“Material Agreements”	 	
means the agreements listed in Schedule A
hereto and any other agreement entered
into by the Borrower after the date hereof
which satisfies the criteria specified in
Section 2.02(g)
	 
	“Minimum Cash Balance”	 	
means, at any time, the USD Equivalent
Amount of the greater of (a) Total
Financial Debt Service of the Borrower for
the period commencing at such time and
ending 183 days thereafter; and (b)
$10,000,000.

- 19 -

 

	 	 	 
	“Ministry”	 	
means the Ministry of Communications and
Information Technology of Romania and any
successor thereto, and any other Romanian
governmental or administrative authority
that has the powers to regulate the
telecommunications sector in Romania.
	 
	“Net Interest Expense”	 	
means (for the period of calculation) the
interest charges accrued during such
period on the Financial Debt of the
Borrower (including imputed interest on
any capital lease obligations), less the
interest income accrued by the Borrower on
its Current Assets.
	 
	“Network”	 	
means the Borrower’s GSM network and (at
all times from and after the date the
Borrower acquires the UMTS License) the
Borrower’s UMTS network.
	 
	“NIB”	 	
means Nordic Investment Bank.
	 
	“NIB Loan”	 	
means the loan to be provided by NIB to
the Borrower pursuant to the NIB Loan
Agreement.
	 
	“NIB Loan Agreement”	 	
means the loan agreement dated on or about
the date hereof between NIB and the
Borrower.
	 
	“Offshore Accounts Charge”	 	
means the instrument pursuant to which the
Borrower grants to the Secured Parties and
the Working Capital Lenders a charge over
certain roaming revenues in offshore
accounts, for the purpose of securing,
inter alia, the obligations of the
Borrower hereunder, which instrument shall
be in form and substance satisfactory to
EDC.
	 
	“Operating Shareholders”	 	
means, collectively, (i) the Controlling
Shareholders, (ii) any Controlled
Affiliates of the Controlling Shareholders
that own an Economic Interest or a
Controlling Interest in the Borrower from
time to time (directly or indirectly
through Controlled Affiliates of such
parties or through a Joint Affiliate) and
(iii) ClearWave’s Majority Shareholder and
any Controlled Affiliates of ClearWave’s
Majority Shareholder that own an Economic
Interest or a Controlling Interest in
ClearWave from time to time.

- 20 -

 

	 	 	 
	“Orange Romania”	 	
means Orange Romania S.A., a company
organised and existing under the laws of
Romania.
	 
	“Orange Romania Interconnection
Agreement”	 	
means the agreement between Orange Romania
and the Borrower, dated 12 May 1999, as
amended by additional acts dated 28 May
1999 and 9 October 2000.
	 
	“Permitted High Yield Back to Back Debt”	 	
has the meaning set out in the Share Retention and Subordination Deed.
	 
	“Permitted Liens”	 	
means the Liens referred to in Section
6.03(1) through (5)
	 
	“Permitted Quasi Equity”	 	
has the meaning set out in the Share
Retention and Subordination Deed.
	 
	“Permitted Treasury Instruments”	 	
means investments of the Borrower in:

	 	 	 	 	 
	 	 	
(a)
	 	investment grade debt securities; and
	 
	 	 	
(b)
	 	securities issued by central Romanian
governmental or state issuers under the
supervision of the National Bank of
Romania (other than any local, municipal
or district bodies or authorities);

	 	 	 
	 	 	
in each case with residual maturity of 90
days or less, provided that such
securities are held by the Borrower with
reputable financial institutions solely
for the purpose of giving temporary
employment to the Borrower’s cash
resources.
	 
	“Potential Event of Default”	 	
means any event which, with the giving of
notice, the passage of time or the making
of any determination, or any combination
thereof, would become an Event of Default.
	 
	“Project”	 	
means the continued design, construction,
equipping, operation (and placing into
operation of), and the provision of
working capital for, the Borrower’s
Network located in Romania as contemplated
under the terms of the Licenses and
includes the acquisition of the UMTS
License.
	 
	“Project Agreements”	 	
means:

- 21 -

 

	 	 	 	 	 
	 	 	
(a)
	 	the Borrower’s Charter;
	 
	 	 	
(b)
	 	the Cooperation Agreement;
	 
	 	 	
(c)
	 	the Licenses;
	 
	 	 	
(d)
	 	the Orange Romania Interconnection
Agreement;
	 
	 	 	
(e)
	 	the Romtelecom Interconnection
Agreement;
	 
	 	 	
(f)
	 	each Working Capital Facility
Agreement;
	 
	 	 	
(g)
	 	each Hedging Agreement;
	 
	 	 	
(h)
	 	each agreement or instrument pursuant
to which the Borrower incurs Subordinated
Debt; and
	 
	 	 	
(i)
	 	any other agreement entered into by
the Borrower after the date hereof
identified by EDC (following consultation
with the Borrower) as a Project Agreement
from time to time.

	 	 	 
	“Public Offering”	 	
means, in respect of any person, any
offering of newly issued equity securities
of such person where such equity
securities are (i) listed, or to be listed
following such offering, on any
internationally recognised stock exchange,
including (in case of the Borrower) the
Bucharest stock exchange, or (ii) sold
pursuant to a prospectus under Canadian
securities laws or pursuant to a
registration statement under the United
States Securities Act of 1933.

- 22 -

 

	 	 	 
	“Public Secondary Sale”	 	
means, in respect of any person, any
offering and sale by holders of equity
securities in such person of any such
equity securities where such equity
securities are (i) listed, or to be listed
following such offering, on any
internationally recognised stock exchange,
including (in case of equity securities of
the Borrower) the Bucharest stock
exchange, or (ii) sold pursuant to a
prospectus under Canadian securities laws
or pursuant to a registration statement
under the United States Securities Act of
1933.
	 
	“Quarter Dates”	 	
means 31 March, 30 June, 30 September and
31 December in any year.
	 
	“Quarterly Period”	 	
means each successive period of three
calendar months commencing on the day
after a Quarter Date and ending on the
next following Quarter Date.
	 
	“RAS”	 	
means accounting standards generally
accepted in Romania including the
International Accounting Standards
promulgated by the International
Accounting Standards Committee as adjusted
by Order No. 94 of 2001 of the Ministry of
Finance of Romania, consistently applied.
	 
	“Recognised Telecommunications
Operator”	 	
has the meaning set out in the Share
Retention and Subordination Deed.
	 
	“Romanian Security Law”	 	
means the law of Romania relating to
security interests in personal property
enacted under Title VI of Law Number
99/1999 as the same may be supplemented,
amended, modified, republished or
re-enacted from time to time.
	 
	“Romtelecom”	 	
means S.N.T. Romtelecom S.A., the national
telecommunications service provider in
Romania.

- 23 -

 

	 	 	 
	“Romtelecom Interconnection
Agreement”	 	
means the interconnection agreement dated
August 6, 1997 entered into between the
Borrower and Romtelecom, in respect of the
interconnection between the Borrower’s
Network and Romtelecom’s network as
amended by additional acts dated 12 March
1998, 2 May 1999 and 30 July 1999, and any
ministerial decrees, ordinances or orders
issued after the date hereof, in respect
of such interconnection in form and
substance acceptable to EDC.
	 
	“Secured Parties”	 	
means the Senior Lenders and each person
which is a Hedge Provider from time to
time.
	 
	“Security”	 	
means the security created or agreed to be
created pursuant to the Security Documents
to secure, inter alia, all amounts owing
to the Senior Lenders under the Financing
Agreements.
	 
	“Security Agreement Over Accounts”	 	
means the Security Agreement Over Accounts
between the Secured Parties, the Borrower
and such Working Capital Lenders,
Collection Banks and Claims Agents (in
each case as defined therein) as may be
parties thereto in such capacity from time
to time in respect of the Borrower
Accounts held with banks in Romania,
securing, inter alia, the obligations of
the Borrower hereunder, which agreement
shall be in form and substance
satisfactory to EDC.
	 
	“Security Agreement Over Movables”	 	
means the instrument pursuant to which the
Borrower grants to the Secured Parties a
security interest in all of the Borrower’s
tangible and intangible movable assets
including, without limitation, the
Borrower’s enterprise and all of the
Borrower’s present and future intangible
assets and contractual rights and claims
(including without limitation accounts
receivable) and tangible movable assets
(including without limitation all of the
Borrower’s equipment, machinery, raw
materials, inventory and work in progress)
together with the annexes, notices and
acknowledgements and consents in the forms
attached thereto, which instrument shall
be in form and substance satisfactory to
EDC.

- 24 -

 

	 	 	 
	“Security Agreement Over Shares”	 	
means the instrument pursuant to which the
Shareholders grant a security interest in
favour of the Secured Parties over issued
and outstanding shares of the Borrower,
and any supplements, amendments, or
additional security instruments entered
into pursuant thereto, together with the
original share certificates representing
all such shares, for the purpose of
securing, inter alia, the obligations of
the Borrower hereunder, which instrument
shall be in form and substance
satisfactory to EDC.
	 
	“Security Documents”	 	
means:

	 	 	 	 	 
	 	 	
(a)
	 	the Security Agreement Over Movables;
	 
	 	 	
(b)
	 	the Insurance Assignment;
	 
	 	 	
(c)
	 	the Security Agreement Over Shares;
	 
	 	 	
(d)
	 	the Security Agreement Over Accounts
and any other instrument pursuant to which
the Borrower grants to the Secured Parties
and Working Capital Lenders a security
interest in the Borrower Accounts;
	 
	 	 	
(e)
	 	each Immovables Hypothec;
	 
	 	 	
(f)
	 	the Offshore Accounts Charge;
	 
	 	 	
(g)
	 	the Assignment of Receivables;
	 
	 	 	
(h)
	 	any Assignment of Subordinated Debt;
and
	 
	 	 	
(i)
	 	any other present or future agreement
or instrument to which the Borrower or any
Shareholder is a party, confirming or
evidencing any security interest,
guarantee, covenant, indemnification or
other assurance against financial loss in
respect of all or any of the Borrower’s
obligations hereunder or under any
Financing Agreement whether now existing
or arising in the future and whether
fixed, prospective or contingent.

- 25 -

 

	 	 	 
	“Security Sharing and Intercreditor
Agreement”	 	
means the security sharing and
intercreditor agreement dated on or about
the date hereof entered into between the
Senior Lenders and any Hedge Provider and
Working Capital Lender which may become
party to it from time to time, and any
other party thereto from time to time
providing for, inter alia, sharing of the
Security and any other security interest
created in favour of the parties thereto
(from time to time) to secure any amounts
owing by the Borrower to such parties.
	 	 	 
	“Senior Debt to EBITDA Ratio” 	 	
means, for any period of calculation, the
result of the aggregate principal amount
of the Senior Loans outstanding as of the
last day of such period divided by EBITDA
for such period.
	 	 	 
	“Senior Debt Service” 	 	
means the aggregate, for any period of
calculation, of all scheduled repayments
of principal and all interest and fees
(other than fees payable in connection
with the entering into of the Senior Loan
Agreements) paid or due and owing in such
period under or in respect of the Senior
Loans.
	 	 	 
	“Senior Debt Service Coverage Ratio” 	 	
means the result of Free Cash Flow in any
period of calculation divided by Senior
Debt Service for such period of
calculation.
	 	 	 
	“Senior Lenders”	 	
means, collectively, EDC, EBRD and NIB.
	 	 	 
	“Senior Loans”	 	
means, collectively, the EDC Loan, the
EBRD Loan and the NIB Loan or, as the
context may require, the aggregate
principal amount thereof from time to time
outstanding.
	 	 	 
	“Senior Loan Agreements”	 	
means, collectively, this Agreement, the
EBRD Loan Agreement and the NIB Loan
Agreement.

- 26 -

 

	 	 	 
	“Share Retention and Subordination
Deed”	 	
means the agreement between the Borrower,
the Operating Shareholders and the Senior
Lenders pursuant to which the Operating
Shareholders agree, inter alia, (i) to
certain restrictions on their ability to
effect changes in their equity interest
in, or transfer shares in the capital of,
the Borrower without the prior written
consent of the Senior Lenders, and (ii) to
subordinate the payment of any amounts
payable by the Borrower to them to all
amounts payable by the Borrower to the
Senior Lenders, which agreement shall be
in form and substance satisfactory to EDC.
	 	 	 
	“Shareholders’ Equity”	 	
means the aggregate of (i) the
shareholders’ equity of the Borrower,
calculated in accordance with Generally
Accepted Accounting Principles (excluding,
for the purposes of such calculation
comprehensive income adjustments to the
shareholders’ equity of the Borrower made
in accordance with Financial Accounting
Standard 133 and amendments thereto as
issued from time to time by the Financial
Accounting Standards Board of the United
States) and (ii) the principal amount of
all Permitted Quasi Equity.
	 	 	 
	“Shareholder Power of Attorney”	 	
means the power of attorney granted by
each Shareholder to the Senior Lenders in
respect of the Financing Agreements, in
form and substance satisfactory to the
Senior Lenders.
	 	 	 
	“Shareholders”	 	
means Vodafone Europe, ClearWave Holdings,
Deraso Holding B.V., Dargate Limited,
Devaynes Holdings Limited, Upson
Enterprises Limited and Commercial Capital
Emerging Markets Limited, their successors
and permitted assigns and any other person
at any time owning shares in the capital
of the Borrower.
	 	 	 
	“Sites”	 	
means all land or buildings in Romania
over which the Borrower holds, as the case
may be, an ownership interest, freehold
interest, leasehold interest, easement,
concession, right of use or other right or
interest in connection with the operation
of the Borrower’s Network.

- 27 -

 

	 	 	 
	“Site Agreement”	 	
means each lease agreement, easement
agreement, concession or use agreement, or
other contract entered into by the
Borrower creating the right of the
Borrower to occupy and utilise a Site for
the purpose of operation of the Borrower’s
Network.
	 	 	 
	“Statutes”	 	
means the statutes of the Borrower dated
November 22, 1996, as amended by
additional acts approved prior to the date
hereof and registered in the Trade
Register in Bucharest, Romania, among the
Shareholders, regarding, inter alia, the
establishment and shareholdings of the
Borrower.
	 	 	 
	“Subordinated Debt”	 	
means Permitted High Yield Back to Back
Debt or Permitted Quasi Equity.
	 	 	 
	“Subsidiary”	 	
means, with respect to any entity, any
other entity over 50% of whose capital is
owned, directly or indirectly, by such
entity or which is otherwise effectively
controlled by such entity.
	 	 	 
	“Telerate Page 3750”	 	
means the display of London Interbank
offered rates of major banks for deposits
in Dollars designated as page 3750 on the
Dow Jones Telerate Service (or such other
page as may replace page 3750 on the Dow
Jones Telerate Service for the purpose of
displaying London Interbank offered rates
for deposits in Dollars).
	 	 	 
	“TIWC”	 	
means Telesystem International Wireless
Corporation N.V., a corporation organised
and existing under the laws of the
Netherlands.
	 	 	 
	“Total Financial Debt”	 	
means, at any time, the aggregate of all
amounts of principal due and owing at such
time under or in respect of (i) the Senior
Loans, (ii) Permitted High Yield Back to
Back Debt of the Borrower and (iii) any
other Financial Debt of the Borrower other
than the Existing Loans Indebtedness.

- 28 -

 

	 	 	 
	“Total Financial Debt Service”	 	
means the aggregate (for any period of
calculation) of all scheduled repayments
of principal and all interest and fees
(other than the fees payable in connection
with the entering into of the Senior Loan
Agreements) paid or due and owing in such
period under or in respect of the
Borrower’s Total Financial Debt.
	 	 	 
	“Total Financial Debt Service
Coverage Ratio”	 	
means, for any period of calculation, the
result of Free Cash Flow for such period
divided by Total Financial Debt Service
for such period.
	 	 	 
	“Total Financial Debt to EBITDA Ratio”	 	
means, for any period of calculation, the
result of the aggregate principal amount
of the Total Financial Debt outstanding as
of the last day of such period divided by
EBITDA for such period.
	 	 	 
	“Total Financial Debt to Equity Ratio”	 	
means, at any time, the result of Total
Financial Debt at such time, divided by
Shareholders’ Equity at such time.
	 	 	 
	“Tranche I EDC Loan”	 	
means the maximum principal amount of the
loan provided for in Section 3.01(1) or,
as the context may require, the principal
amount thereof from time to time
outstanding.
	 	 	 
	“Tranche II EDC Loan”	 	
means the maximum principal amount of the
loan provided for in Section 3.01(2) or,
as the context may require, the principal
amount thereof from time to time
outstanding.
	 	 	 
	“Tranche I Commitment Period”	 	
means the period commencing on the date of
this Agreement and terminating on the
earlier of (i) the date which is 90 days
after the date of this Agreement and (ii)
the date the obligation of EDC to make
Disbursements hereunder terminates in
accordance with the terms of this
Agreement.
	 	 	 
	“Tranche I EBRD Loan”	 	
means the maximum principal amount of the
loan provided by EBRD to the Borrower
pursuant to Section 3.01(1) of the EBRD
Loan Agreement or, as the context may
require, the principal amount thereof from
time to time outstanding.

- 29 -

 

	 	 	 
	“Tranche I Loan”	 	
means the aggregate of the Tranche I EDC
Loan, the Tranche I EBRD Loan and the
Tranche I NIB Loan.
	 	 	 
	“Tranche I NIB Loan”	 	
means the maximum principal amount of the
loan provided by NIB to the Borrower
pursuant to Section 3.01(1) of the NIB
Loan Agreement or, as the context may
require, the principal amount thereof from
time to time outstanding.
	 	 	 
	“Tranche II Commitment Period”	 	
means the period commencing on the date of
this Agreement and terminating on the
earlier of (i) December 31, 2003 and (ii)
the date the obligation of EDC to make
Disbursements hereunder terminates in
accordance with the terms of this
Agreement.
	 	 	 
	“Tranche II EBRD Loan”	 	
means the maximum principal amount of the
loan provided by EBRD to the Borrower
pursuant to Section 3.01(2) of the EBRD
Loan Agreement or, as the context may
require, the principal amount thereof from
time to time outstanding.
	 	 	 
	“Tranche II Loan”	 	
means the aggregate of the Tranche II EDC
Loan, the Tranche II EBRD Loan and the
Tranche II NIB Loan.
	 	 	 
	“Tranche II NIB Loan”	 	
means the maximum principal amount of the
loan provided by NIB to the Borrower
pursuant to Section 3.01(2) of the NIB
Loan Agreement or, as the context may
require, the principal amount thereof from
time to time outstanding.
	 	 	 
	“UMTS”	 	
means the universal mobile
telecommunications system known as
International Telecommunications Union
standard IMT-2000.
	 	 	 
	“UMTS License”	 	
means the license for the provision in
Romania of UMTS telecommunications
services that may be granted to the
Borrower by the Ministry, as such license
may be amended, supplemented, restated,
novated or assigned from time to time.
	 	 	 
	“UMTS License Compliance”	 	
occurs upon achievement by the Borrower of
all material terms and conditions of the
UMTS License.

- 30 -

 

	 	 	 
	“UMTS License Costs”	 	
means license fees and other expenses paid
or payable by the Borrower in connection
with the acquisition of the UMTS License.
	 	 	 
	“USD Equivalent Amount”	 	
means, in respect of any amount
denominated in any currency, the
equivalent, in Dollars, of such amount
calculated by reference to the rate of
exchange available to EDC on the
international foreign exchange market (and
notified to the Borrower) two (2) Business
Days prior to the date of determination.
	 	 	 
	“Vodafone”	 	
means at any time
	 	 	 
	 	 	
(i)   any Controlled Affiliate of Vodafone
Group Plc that owns directly an Economic
Interest or a Controlling Interest in the
Borrower or in a Joint Affiliate, or
	 	 	 
	 	 	
(ii)   if the combined Economic Interest or
Controlling Interest in the Borrower owned
(directly or indirectly) by Vodafone Group
Plc or one or more Controlled Affiliates
of Vodafone Group Plc or a Joint Affiliate
is greater than the Economic Interest and
Controlling Interest of ClearWave in the
Borrower at such time, Vodafone Group Plc
and any Controlled Affiliate of Vodafone
Group Plc that owns directly an Economic
Interest or a Controlling Interest in the
Borrower or in a Joint Affiliate.
	 	 	 
	“Vodafone Europe”	 	
means Vodafone Europe B.V., a corporation
organized and existing under the laws of
the Netherlands.
	 	 	 
	“Vodafone Technical”	 	
means Vodafone Technical Services, a
corporation organized and existing under
the laws of the State of California in the
United States of America, and an Affiliate
of Vodafone.

- 31 -

 

	 	 	 
	“Working Capital”	 	
means the amount by which Current Assets
(excluding Cash and Cash Equivalents,
deferred and future income tax assets,
income tax receivables/recoverables and
assets arising out of derivative financial
instruments) exceed Current Liabilities
(excluding Financial Debt, accrued income
taxes payable, deferred or future income
tax liabilities, accrued interest payable,
accrued dividends payable, other accruals
with respect to Distributions and
liabilities arising out of derivative
financial instruments)
	 	 	 
	“Working Capital Facility”	 	
means any working capital facility
provided by a Working Capital Lender to
the Borrower on terms and conditions
acceptable to EDC acting reasonably,
including without limitation the
facilities provided under (i) the ABN
Working Capital Agreement and (ii) the
Citibank Working Capital Agreement
provided that the available limits under
all such Working Capital Facilities shall
not exceed in the aggregate $20 million.
	 	 	 
	“Working Capital Facility Agreement”	 	
means any agreement entered into between
the Borrower and a Working Capital Lender
for provision of a Working Capital
Facility.
	 	 	 
	“Working Capital Lender”	 	
means any provider (which in each case
shall be a financial institution that is
not an Affiliate of the Borrower or any
Shareholder) of a Working Capital Facility
acceptable to EDC pursuant to
documentation to be provided by the
Borrower to EDC and containing terms and
conditions consistent with this Agreement
and the other Financing Agreements.

Section 1.02   Interpretation

	(a)	 	In this Agreement, unless the context otherwise requires, words denoting
the singular include the plural and vice versa, words denoting persons
include corporations, partnerships, companies, firms and other legal
persons and references to a person includes its successors and permitted
assigns.
	 
	(b)	 	In this Agreement, a reference to a specified Article, Section, Schedule
or Exhibit shall be construed as a reference to that specified Article or
Section of, or Schedule or Exhibit to, this Agreement.

- 32 -

 

	(c)	 	In this Agreement, a reference to an agreement shall be construed as a
reference to such agreement as it may be amended, varied, supplemented,
novated or assigned from time to time.
	 
	(d)	 	In this Agreement, the headings and the Table of Contents are inserted
for convenience of reference only and shall not affect the interpretation
of this Agreement.
	 
	(e)	 	In this Agreement, “control” (including, with correlative meanings, the
terms “controlled by” and “under common control with”), as used with
respect to any person, means the possession, directly or indirectly, of
the power to direct or cause the direction of the management and policies
of such person, whether through the ownership of voting shares, by
contract or otherwise.
	 
	(f)	 	In this Agreement, “continuing” in relation to an Event of Default, shall
be construed as a reference to an Event of Default which has not been
waived in accordance with the terms hereof and, in relation to a Potential
Event of Default, one which has not been remedied within the relevant
grace period or waived in accordance with the terms hereof.
	 
	(g)	 	In this Agreement a “month” is a reference to a period starting on one
day in a calendar month and ending on the numerically corresponding day in
the next succeeding calendar month save that:

			
	 	(i)	if any such numerically corresponding day is not
a Business Day, such period shall end on the immediately
succeeding Business Day to occur in that next succeeding
calendar month or, if none, it shall end on the immediately
preceding Business Day; and
	 
	 	(ii)	if there is no numerically corresponding day in
that next succeeding calendar month, that period shall end on
the last Business Day in that next succeeding calendar month;

	 	 	(and references to “months” shall be construed accordingly).

	(h)	 	In this Agreement, a “successor” shall be construed so as to include an
assignee or successor in title of such party and any person who under the
laws of its jurisdiction of incorporation or domicile has assumed the
rights and obligations of such party under this Agreement or to which,
under such laws, such rights and obligations have been transferred.
	 
	(i)	 	In this Agreement, “tax” shall be construed so as to include any tax,
levy, impost, duty or other charge of a similar nature (including any
penalty or interest payable in connection with any failure to pay or any
delay in paying any of the same).
	 
	(j)	 	In this Agreement, “VAT” shall be construed as a reference to value added
tax including any similar tax which may be imposed in place thereof from
time to time.
	 
	(k)	 	In this Agreement, “winding-up”, “dissolution” or “administration” of a
company or corporation shall be construed so as to include any equivalent
or analogous proceedings

- 33 -

 

	 	 	under the law of the jurisdiction in which such company or corporation is
incorporated or any jurisdiction in which such company or corporation
carries on business including the seeking of liquidation, winding-up,
reorganization, dissolution, administration, arrangement, adjustment,
protection or relief of debtors.
	 
	(l)	 	In this Agreement, a “wholly-owned Subsidiary” of a company or
corporation shall be construed as a reference to any company or
corporation which has no other shareholders or members except that other
company or corporation and that other company’s or corporation’s
wholly-owned subsidiaries or persons acting on behalf of that other
company or corporation or its wholly-owned subsidiaries.
	 
	(m)	 	In this Agreement, a statute or treaty shall be construed as a reference
to such statute or treaty as the same may have been, or may from time to
time be, amended or, in the case of a statute, re-enacted.
	 
	(n)	 	In this Agreement, a “holding company” of a company or a corporation
shall be construed as a reference to any company or corporation of which
the first-mentioned company or corporation is a subsidiary.

ARTICLE II — REPRESENTATIONS AND WARRANTIES

Section 2.01   Representations Regarding the Project

The Borrower represents and warrants as of the date hereof that the forecasts,
projections and calculations in the Base Case Financial Forecast have been
prepared by the Borrower in good faith giving due and careful consideration to
all relevant factors and based on assumptions which were reasonable at the time
that such forecasts, projections and calculations were prepared, up to and
including the date of this Agreement, and there has been nothing since the date
such forecasts, projections and calculations were prepared that would make them
or the information contained in the Base Case Financial Forecast unreasonable
or misleading.

Section 2.02   Representations Regarding the Borrower

The Borrower represents and warrants as follows:

	(a)	 	Incorporation. The Borrower is a joint stock company duly organized and
validly existing under the laws of Romania and registered with all
relevant registration bodies in Romania and has full power to own the
properties which it owns or will own for the purposes of the Project and
to carry out the businesses which it carries out or will carry out for the
purposes of the Project.
	 
	(b)	 	Conduct of Business and Subsidiaries. The Borrower conducts no business
other than the implementation and operation of the Project and has no
Subsidiaries.
	 
	(c)	 	Share Capital. The Borrower has an authorised and issued capital of
200,279,767 shares with a nominal value of 10,000 Lei each. The following
is a list of all shareholders in the Borrower, with their respective
shareholdings, as of the date of this Agreement:

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	Borrower's Shareholding Structure
	

	 	 	Percentage of Shareholding	Number of Shares	 
	ClearWave Holdings
	 	 	63.541	%	 	 	127,260,860	 
	Vodafone Europe
	 	 	20.1	%	 	 	40,256,233	 
	Deraso Holding B.V
	 	 	14.4	%	 	 	28,840,286	 
	Dargate Limited
	 	 	0.9	%	 	 	1,802,516	 
	Devaynes Holdings Limited
	 	 	0.526	%	 	 	1,052,631	 
	Upson Enterprises Limited
	 	 	0.276	%	 	 	552,632	 
	Commercial Capital
Emerging Markets Limited
	 	 	0.257	%	 	 	514,609	 
	 
	 	 	
	 	 	 	
	 
	Total
	 	 	100.0	%	 	 	200,279,767	 
	 
	 	 	
	 	 	 	
	 

	 	 	All of the shares listed above have been validly issued and are fully
paid. The only issued shares of the Borrower are registered shares. There
are no options, warrants or instruments convertible into shares or other
agreements relating to the existing shares of the Borrower or for the
issuance of additional shares of any class or description of the
Borrower, except for any stock option plan identified in Section 6.06. No
person has any right (other than as a shareholder) to share in the
profits of the Borrower.
	 
	(d)	 	Officers. As of the date of this Agreement, the Chairman of the Board
and Chief Executive Officer of the Borrower is Alexander Tolstoy, the
President and Chief Operating Officer of the Borrower is Edward Murray
Lattimore, the Senior Vice President and Chief Financial Officer of the
Borrower is James J. Jackson and the Vice President of Finance and
Logistics of the Borrower is Terry Lobraico.
	 
	(e)	 	Financial Statements. The balance sheet of the Borrower as at December
31, 2001 and the related income statement, cash flow statement and
statement of changes in equity of the Borrower for the Financial Year
ending on that date, and the management report thereon, certified by the
Auditors, present a true and fair view of the financial condition of the
Borrower as of the date of such balance sheet and for the period covered
by such income statement, cash flow statement and statement of
shareholders’ equity and were prepared in accordance with Generally
Accepted Accounting Principles. The Borrower had, as of the date of such
balance sheet, no material contingent obligations, liabilities for taxes
or unusual forward or long term commitments not disclosed by, or reserved
against, in such balance sheet. Since the date of such balance sheet, the
Borrower has not suffered any material adverse change in its business,
operations or financial condition, incurred any substantial or unusual
loss or liability or undertaken or agreed to undertake any substantial or
unusual obligation except under the Financing Agreements, Project
Agreements and other Material Agreements.

- 35 -

 

	(f)	 	Title to Assets. The Borrower has good and marketable legal title to all
moveable property of every kind whatsoever to which the Security Agreement
Over Movables applies. The Borrower does not own any immovable property.
The Borrower’s assets are not subject to any Lien and the Borrower is not
subject to any contract, arrangement or law, whether conditional or
unconditional, pursuant to which any Lien on its assets may be created,
except for Permitted Liens.
	 
	(g)	 	Material Agreements. As of the date hereof, the Borrower is not a party
to, or committed to enter into, any agreement, other than the Financing
Agreements, the Project Agreements, the Existing Loan Agreements or any
other of the Material Agreements:

	 	(1)	 	that involves the payment of more than $2,500,000 (or the
equivalent thereof in other currencies) per year or in the aggregate
more than $5,000,000 (or the equivalent thereof in other currencies)
over the term of such agreement; or
	 
	 	(2)	 	that is material to the Borrower’s ability to carry on its
business as presently conducted, to carry out the Project or to
satisfy its obligations under this Agreement.

	(h)	 	Compliance with Law. The Borrower is not materially in violation of any
Law presently in effect. To the best of the Borrower’s knowledge, and
except as already disclosed in writing to EDC, no Law has been proposed or
is expected which may have a material adverse effect on the Project, the
Borrower’s business, operations or financial condition or the ability of
the Borrower to perform any of its obligations under any Financing
Agreement or Project Agreement. All tax returns and reports of the
Borrower required by law to be filed have been duly filed and all tax
assessments, fees and other governmental charges upon the Borrower, its
properties and its income, which are due and payable, have been paid,
other than those currently payable without penalty or interest. Neither
the Borrower nor any of its officers, directors or authorised employees,
agents or representatives has paid, promised to pay or offered to pay, or
authorised the payment of, any commission, bribe, pay-off or kickback
related to the Project or the Borrower’s business that violates any
applicable Law or entered into any agreement pursuant to which any such
commission, bribe, pay-off or kickback may or will at any time be paid.
	 
	(i)	 	No Default. The Borrower is not in default under any Material Agreement
or other material obligation or duty by which it or any of its properties
or assets is bound, and there exists no Event of Default and no Potential
Event of Default.
	 
	(j)	 	Environmental Compliance. The Borrower and its businesses, operations,
assets, equipment, property, leaseholds and other facilities are in
compliance with the provisions of all applicable material environmental,
health and safety laws. The Borrower has been issued with, or has applied
for, all material required permits, licenses, certificates and approvals
relating to, and has received no material complaint, order, directive,
claim, citation or notice from any governmental authority or other person
with respect to, air emissions, discharges to surface water or ground
water, noise emissions, solid or liquid waste disposal, the use,
generation, storage, transportation or disposal of toxic or

- 36 -

 

	 	 	hazardous substances or wastes or other environmental, health or safety
matters. To the knowledge of the Borrower (having made all reasonable
enquiries), there is no contamination on any Site and each is suitable
for the implementation of the Project.
	 
	(k)	 	Litigation. The Borrower is not engaged in, or, to the best of its
knowledge, threatened by, any litigation, arbitration or administrative
proceeding, the outcome of which might have a material adverse effect on
the Project, the Borrower’s business, operations or financial condition or
the ability of the Borrower to perform any of its obligations under any
Financing Agreement or Project Agreement.
	 
	(l)	 	Project. The Borrower has obtained all material governmental or
regulatory licenses, approvals, consents, notarizations, permits, rulings,
filings or registrations at any local, regional, municipal, republic or
other levels of government required for the implementation and completion
of the Project and the carrying on of the business of the Borrower as
presently conducted or as contemplated thereby, and all such licenses,
approvals, consents, filings, permits, rulings, notarizations and
registrations were made or obtained and remain valid as at the date hereof
and the Borrower has no reason to believe at the date hereof that such
licenses, approvals, consents, permits, rulings, notarizations, filings or
registrations will be rescinded, cancelled or suspended.
	 
	(m)	 	Head Office. The Borrower’s head office and the office at which it keeps
its records concerning the Financing Agreements, Project Agreements and
other Material Agreements is at Bucharest, Romania.
	 
	(n)	 	Insurance. The factual information contained in all written information
supplied by or at the direction of the Borrower to its insurers (or
otherwise made available to such insurers) in connection with the
Borrower’s business and the Project, as updated from time to time, to the
best of the Borrower’s knowledge after due inquiry, is true and accurate
in all material respects as of the date hereof and the Borrower is not
aware of any facts or circumstances that have not been disclosed to those
insurers that might reasonably be expected, if so disclosed, to adversely
affect the nature or extent of the coverage to be provided under the
insurance.

Section 2.03   Representations Regarding the Agreements

The Borrower represents and warrants as follows:

	(a)	 	Corporate Power. The Borrower has the corporate power to carry on its
business, own its property and assets and to enter into and perform the
Financing Agreements, Project Agreements and other Material Agreements to
which it is a party.
	 
	(b)	 	Due Authorization; Enforceability; No Conflict. The Financing Agreements
and Project Agreements to which the Borrower is a party have been duly
authorised by the Borrower. This Agreement has been duly executed by the
Borrower and this Agreement constitutes, and the other Financing
Agreements and Project Agreements to which the Borrower is a party, as or
when executed and delivered, constitute or will constitute valid and
legally binding obligations of the Borrower, enforceable in accordance
with their

- 37 -

 

	 	 	respective terms. The making of the Financing Agreements, Project
Agreements and other Material Agreements and the compliance with the
terms thereof:

	 	(1)	 	will not result in the violation of the Borrower’s Charter or
any provision contained in any Law applicable to the Borrower;
	 
	 	(2)	 	will not conflict with or result in the breach of any
provision of, or require any consent under, or result in the
imposition of any Lien under, any agreement or instrument to which
the Borrower is a party or by which the Borrower or any of its
assets is bound; and
	 
	 	(3)	 	will not constitute a default or an event which, with the
giving of notice, the passage of time or the making of any
determination, or any combination thereof, would constitute a
default under any such agreement or instrument.

	(c)	 	Governmental Approvals. No governmental licenses, approvals, consents,
rulings, permits, filings or registrations are required for the due
execution, delivery or performance by the Borrower of any Financing
Agreement, Project Agreement, or the validity or enforceability thereof
other than (i) any licenses, approvals, consents, filings and
registrations which have been made or obtained and remain valid as of the
date hereof, (ii) any licenses, authorizations, consents or approvals of
the National Bank of Romania which the Borrower is in the process of
obtaining and (iii) any immaterial licenses, approvals, consents, filings
and registrations which the Borrower is in the process of obtaining and
which have been identified by the Borrower to EDC in writing prior to the
date hereof, and the Borrower has no reason to believe that such licenses,
approvals, consents, filings or registrations will be rescinded, cancelled
or suspended or, in the case of paragraph (ii) or (iii), not obtained.
	 
	(d)	 	Ranking. This Agreement constitutes a direct, unconditional and secured
obligation of the Borrower and the Debt incurred by the Borrower hereunder
ranks and will rank in priority of payment senior to all other present and
future indebtedness of the Borrower other than (i) the EBRD Loan, the NIB
Loan, any Working Capital Facility and any Debt owed to a Hedge Provider
with respect to which the Debt incurred by the Borrower hereunder ranks at
least pari passu and (ii) at any time prior to the Existing Loans
Repayment Date, the Existing Loans Indebtedness.
	 
	(e)	 	Security. Each Security Document will, when executed and delivered,
constitute a valid security interest in and Lien on the collateral covered
by such Security Document, securing payment of all principal, interest and
other amounts payable to the Senior Lenders under the Financing Agreements
and upon registration with the relevant registries as required under
applicable law shall be perfected and shall rank senior to all other Liens
on such collateral other than Permitted Liens. The Borrower is not a party
to any other security agreement or instrument creating or purporting to
create a Lien on such collateral other than Permitted Liens. The Security
is not subject to avoidance or loss of priority on liquidation of the
Borrower or in bankruptcy, composition or other insolvency proceedings
relating to the Borrower.

- 38 -

 

	(f)	 	Project and Material Agreements. Each of the Project Agreements and
Material Agreements is in full force and effect without modification from
the description thereof set forth in Section 1.01 (without the application
of Section 1.02(c)). There has occurred no breach, and no event which with
the giving of notice, the passage of time or the making of any
determination, or any combination thereof, would constitute a breach of
any of the Project Agreements or Material Agreements.
	 
	(g)	 	Taxes. There is no stamp or other tax or charge of Romania or any
political subdivision or taxing authority thereof or of any taxing
authority, federation or association of which Romania is a member to be
imposed on or by virtue of the execution, delivery or performance of any
Financing Agreement or necessary to ensure the legality, validity,
enforceability or admissibility in evidence thereof in Romania other than:

	 	(1)	 	A registration charge payable in respect of the security
interest granted in the Borrower’s enterprise under the Security
Agreement Over Movables in the Trade Register in Bucharest;
	 
	 	(2)	 	Registration charges payable in respect of registrations of
the Security in the Electronic Archive;
	 
	 	(3)	 	A legalisation fee payable in respect of the legalisation of
the Financing Agreements;
	 
	 	(4)	 	Fees payable in respect of certification of translations into
Romanian or English of Financing Agreements;
	 
	 	(5)	 	A registration fee payable in respect of registration of any
Immovables Hypothecs in the relevant immovable registry;
	 
	 	(6)	 	registration charges payable in respect of the registration
of the Security with the Romanian State Office for Patents and Trade
Marks; and
	 
	 	(7)	 	A registration charge payable on each updating of the
Schedules and Annexes to the Security Agreement Over Movables, the
Security Agreement Over Shares, and the Security Agreement Over
Accounts .

Section 2.04   Acknowledgement and Warranty

The Borrower acknowledges that it has made the representations and warranties
contained in Sections 2.01, 2.02 and 2.03 with the intention of inducing EDC to
enter into this Agreement, that the repetition of such representations and
warranties will induce EDC to make Disbursements hereunder, and that EDC has
entered into this Agreement on the basis of, and in full reliance on, each of
such representations and warranties. The Borrower warrants that it has no
knowledge of any additional facts or matters the omission of which makes any of
such representations and warranties misleading or which would or might
reasonably be expected to affect the judgement of a prospective lender
regarding lending to the Borrower.

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ARTICLE III — BANK LOAN

Section 3.01   Amount and Currency

Subject to the terms and conditions of this Agreement, EDC agrees to lend to
the Borrower an amount, in Dollars, not to exceed in the aggregate $35,000,000,
consisting of:

	 	(1)	 	the Tranche I EDC Loan in an amount not to exceed
$27,766,666; and
	 
	 	(2)	 	the Tranche II EDC Loan in an amount not to exceed
$7,233,334.

Section 3.02   Purpose

	(a)	 	The Borrower shall utilize all proceeds from the Tranche I EDC Loan
towards prepayment of the Existing Loans Indebtedness, and to pay the fees
payable by the Borrower in connection with the Senior Loan Agreements and
the Borrower’s and the Senior Lenders’ costs incurred in connection with
the Senior Loan Agreements and the other Financing Agreements.
	 
	(b)	 	The Borrower shall use all proceeds from the Tranche II EDC Loan towards
Capital Expenditures associated with the Project, (other than in
connection with the Borrower’s UMTS Network) or for the payment of the
UMTS License Costs by the Borrower.
	 
	(c)	 	As of the date hereof, the total amount of principal owing under the
Existing Loan Agreements is $211,196,367.47 and the amount of principal
owing under each of the Existing Loan Agreements is:

	 	 	 	 	 
	Existing Loan Agreement	 	Amount
	
	 	

	Existing EDC Loan Agreement
	 	$	26,777,699.00	 
	Existing EBRD Loan Agreement
	 	$	114,996,138.01	 
	Existing NIB Loan Agreement
	 	$	22,676,978.00	 
	Existing EKN Loan Agreement
	 	$	36,745,551.46	 
	Existing Subordinated Loan Agreement
	 	$	10,000,000.00	 

Section 3.03   Disbursements

	(a)	 	Subject to Section 3.04 and Article IV, the Tranche I EDC Loan shall be
disbursed by EDC in one Disbursement on a Business Day during the Tranche
I Commitment Period upon request of the Borrower. The Borrower may request
the Disbursement of the Tranche I EDC Loan by submitting to EDC an
original application for such Disbursement, in the form of Exhibit A and
in substance satisfactory to EDC, at least five (5) Business Days prior to
the proposed date of such Disbursement. Such application shall, unless EDC
otherwise agrees, be irrevocable and binding on the Borrower.

- 40 -

 

	(b)	 	Subject to Section 3.04 and Article IV, the Tranche II EDC Loan shall be
disbursed by EDC from time to time on any Business Day during the Tranche
II Commitment Period in one or more Disbursements upon request of the
Borrower. The Borrower may request a Disbursement of the Tranche II EDC
Loan by submitting to EDC an original application for such Disbursement,
in the form of Exhibit A and in substance satisfactory to EDC, at least
eight (8) Business Days prior to the proposed date of such Disbursement.
Such application shall, unless EDC otherwise agrees, be irrevocable and
binding on the Borrower.
	 
	(c)	 	Disbursements (other than a Disbursement of the entire undisbursed amount
of the Tranche I EDC Loan or of the Tranche II EDC Loan) shall be made in
amounts of no less than $1,000,000 and integral multiples of $200,000
thereafter.
	 
	(d)	 	Disbursements shall be made in compliance with Section 4.01, Section 4.02
and Section 4.03.

Section 3.04   Suspension and Cancellation

	(a)	 	From time to time, EDC may, by notice to the Borrower, suspend or cancel
the right of the Borrower to further Disbursements:

	 	(1)	 	if no disbursements under the Senior Loan Agreements have
been made by the date which is 90 days after the date hereof, or
such other date as may be agreed by the parties hereto;
	 
	 	(2)	 	if an Event of Default (or for the purposes of suspension
only, a Potential Event of Default) has occurred and is continuing;
or
	 
	 	(3)	 	if EBRD has suspended or cancelled the right of the Borrower
to further Disbursements (as defined in the EBRD Loan Agreement) or
NIB has suspended or cancelled the right of the Borrower to further
Disbursements (as defined in the NIB Loan Agreement).

	 	 	Upon the giving of such notice, the right of the Borrower to further
Disbursements shall be suspended or cancelled as indicated in the notice.
The exercise by EDC of the right of suspension shall not preclude EDC
from exercising its right of cancellation as provided in this Section
3.04, either for the same or another reason, and shall not limit any
other rights of EDC under the Financing Agreements.
	 
	(b)	 	The Borrower shall have the right at any time, on not less than 30 days’
prior notice to EDC, to cancel in whole or in part any undisbursed portion
of the Tranche II EDC Loan, provided that:

	 	(1)	 	the Borrower shall cancel at the same time pro rata
undisbursed amounts under the Tranche II EBRD Loan and Tranche II
NIB Loan on the basis of initially applicable amounts available
under the Tranche II EBRD Loan and Tranche II NIB Loan less any
amounts previously cancelled of the initially applicable Tranche II
EDC Loan, Tranche II EBRD Loan and Tranche II NIB Loan;

- 41 -

 

	 	(2)	 	the Borrower shall pay to EDC at the same time all accrued
commitment charges on the portion of the Tranche II EDC Loan to be
cancelled and all other amounts due hereunder;
	 
	 	(3)	 	EDC is satisfied, acting reasonably, that adequate financing
will remain available to the Borrower following such cancellation to
enable the Borrower to complete the Project; and
	 
	 	(4)	 	in the case of partial cancellations of undisbursed portions
of the Tranche II EDC Loan, the Tranche II EBRD Loan and the Tranche
II NIB Loan such cancellations shall be in an aggregate amount of
$2,000,000, and integral multiples of $1,000,000 thereafter.

	 	 	Any such notice of cancellation by the Borrower shall be irrevocable and
binding on the Borrower. Amounts of the Tranche II EDC Loan which are
cancelled by the Borrower may not be reinstated.
	 
	(c)	 	The Borrower shall pay to EDC on the date of cancellation a cancellation
fee of one eighth of one per cent (0.125%) of the principal amount of the
EDC Loan to be cancelled. On termination of the Tranche I Commitment
Period, the Borrower shall be deemed to have cancelled any then
undisbursed portion of the EDC Loan and shall pay to EDC on the date of
such termination the cancellation fee specified above. On termination of
the Tranche II Commitment Period, the Borrower shall be deemed to have
cancelled any then undisbursed portion of the Tranche II EDC Loan and
shall pay to EDC on the date of such termination the cancellation fee
specified above.

Section 3.05   Charges and Commissions

	(a)	 	The Borrower shall pay to EDC during the Tranche I Commitment Period a
commitment charge at the rate of one-half of one percent (0.5%) per annum
on so much of the Tranche I EDC Loan as has not, from time to time, been
disbursed to the Borrower or cancelled. The Borrower shall pay to EDC
during the Tranche II Commitment Period a commitment charge at the rate of
one percent (1%) per annum on so much of the Tranche II EDC Loan as has
not, from time to time, been disbursed to the Borrower or cancelled. The
commitment charges on the Tranche I EDC Loan and the Tranche II EDC Loan
shall accrue from day to day, from the date of this Agreement. The
commitment charges shall be calculated on the basis of the actual number
of days elapsed in the relevant period and a 360-day year and shall be due
and payable in arrears on each Interest Payment Date (even though no
interest may be payable on such date), or such earlier date of
cancellation as may be requested by EDC or the Borrower pursuant to
Section 3.04.
	 
	(b)	 	The charges and commissions referred to in this Section 3.05 are
exclusive of any value added or other tax which might be chargeable in
connection with such charges or commissions. If any such value added or
other tax becomes chargeable, the Borrower shall pay such value added or
other tax to EDC at the same time that the relevant charge or commission
becomes due and payable.

- 42 -

 

Section 3.06   Interest

	(a)	 	Except as provided in this Section 3.06 the Borrower shall pay interest
on the principal amount of each Disbursement of the EDC Loan from time to
time outstanding during each Interest Period for such Disbursement at a
rate equal to the sum of the Margin and LIBOR for such Interest Period.
	 
	(b)	 	Interest shall:

	 	(1)	 	accrue from and including the first day of an Interest Period
to but excluding the last day of such Interest Period;
	 
	 	(2)	 	be calculated on the basis of the actual number of days
elapsed and a 360-day year; and
	 
	 	(3)	 	be due and payable on the Interest Payment Date which is the
last day of the relevant Interest Period.

	(c)	 	On each Interest Determination Date, EDC shall determine the interest
rate(s) applicable during the relevant Interest Period and promptly give
notice thereof to the Borrower. Each determination by EDC of the interest
rate applicable to any portion of the EDC Loan shall be final, conclusive
and binding upon the Borrower unless shown by the Borrower to the
satisfaction of EDC that any such determination has involved clerical
error.
	 
	(d)	 	On December 31, 2003 and on each Quarter Date thereafter (each such date,
the “Margin Determination Date”) the Margin under this Section 3.06 for
the Interest Period following such Margin Determination Date shall be
adjusted such that it equals the “Adjusted Margin” identified in the table
below if the Total Financial Debt to EBITDA Ratio, calculated as of the
Margin Determination Date by reference to the Quarterly Period ending on
the Margin Determination Date and the preceding 3 Quarterly Periods, is
the ratio identified next to such Adjusted Margin in the table below:

	 	 	 	 	 
	Total Financial Debt to EBITDA Ratio	 	Adjusted Margin
	
	 	

	greater than 2.00
	 	 	3.50	%
	greater than 1.50 but less than or equal to 2.00
	 	 	3.25	%
	greater than 1.00 but less than or equal to 1.50
	 	 	3.00	%
	equal to or less than 1.00
	 	 	2.50	%

	 	 	provided that if the Total Financial Debt Service Coverage Ratio of the
Borrower calculated by reference to the Quarterly Period ending on the
Margin Determination Date and the preceding 3 Quarterly Periods:

- 43 -

 

				
	 	(i)	 	falls below 1.40, the Margin for the Interest
Period next following the Margin Determination Date shall be
the greater of the Margin calculated in accordance with the
preceding paragraph and 3.25%; and
	 
	 	(ii)	 	falls below 1.25, the Margin for the Interest
Period next following the Margin Determination Date shall be
the greater of the Margin calculated in accordance with the
preceding paragraph and 4.00%.

Section 3.07   Default Interest

	(a)	 	If the Borrower fails to pay when due any amount payable by it under this
Agreement, the overdue amount shall bear interest at a rate equal to the
sum of:

	 	(1)	 	2.0% per annum;
	 
	 	(2)	 	the Margin applicable on the first day of the Default Interest Period; and
	 
	 	(3)	 	the interest rate per annum offered in the London interbank
market on the date two Business Days prior to the first day of the
relevant Default Interest Period (or, at EDC’s option, on the first
day of such Default Interest Period) for a deposit in Dollars of an
amount comparable to the overdue amount for a period equal to the
relevant Default Interest Period or, if EDC determines that deposits
in the Loan Currency are not being offered in the London interbank
market in such amounts or for such period, the cost to EDC
(expressed as a rate per annum) of funding the overdue amount from
whatever sources it selects.

	(b)	 	Default interest shall:

	 	(1)	 	accrue from day to day from the due date to the date of
actual payment, after as well as before judgement, if any;
	 
	 	(2)	 	be calculated on the basis of the actual number of days
elapsed and a 360-day year;
	 
	 	(3)	 	be compounded at the end of each Default Interest Period; and
	 
	 	(4)	 	be due and payable forthwith upon demand.

	(c)	 	Each determination by EDC of the interest rates applicable to overdue
amounts and of Default Interest Periods shall be final, conclusive and
binding upon the Borrower unless shown by the Borrower to the satisfaction
of EDC that any such determination has involved clerical error.

- 44 -

 

Section 3.08   Repayment

	(a)	 	The Borrower shall repay the EDC Loan on the following dates and in the
following amounts (and the percentage to be repaid identified in the table
below in each case shall be the percentage of the maximum amount of the
EDC Loan disbursed to the Borrower hereunder):

	 	 	 	 	 	 
	Date Payment Due	 	 	Percentage of EDC Loan to be repaid
	
	 	

	14 January 2004
	 	 	 	2.5	%
	14 April 2004
	 	 	 	2.5	%
	14 July 2004
	 	 	 	2.5	%
	14 October 2004
	 	 	 	2.5	%
	14 January 2005
	 	 	 	3.75	%
	14 April 2005
	 	 	 	3.75	%
	14 July 2005
	 	 	 	3.75	%
	14 October 2005
	 	 	 	3.75	%
	14 January 2006
	 	 	 	5	%
	14 April 2006
	 	 	 	5	%
	14 July 2006
	 	 	 	5	%
	14 October 2006
	 	 	 	5	%
	14 January 2007
	 	 	 	6.25	%
	14 April 2007
	 	 	 	6.25	%
	14 July 2007
	 	 	 	6.25	%
	14 October 2007
	 	 	 	6.25	%
	14 January 2008
	 	 	 	7.5	%
	14 April 2008
	 	 	 	7.5	%
	14 July 2008
	 	 	 	7.5	%
	14 October 2008
	 	 	 	7.5	%
	 
	 	 	
	 
	Total
	 	 	 	100.0	%
	 
	 	 	
	 

	(b)	 	From time to time while the EDC Loan is being disbursed, Disbursements
shall be allocated by EDC for repayment on each of the dates set forth
above in amounts which are pro rata to the amounts of the respective
installments of the EDC Loan set forth above opposite those dates (with
EDC adjusting those allocations as necessary so as to achieve whole
numbers in each case).
	 
	(c)	 	The dates for payment of principal of the EDC Loan are intended to
coincide with Interest Payment Dates. If any Interest Payment Date is
affected by the proviso to the definition of “Interest Payment Date”, then
the corresponding date for payment of principal shall be changed to
coincide with such Interest Payment Date.

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Section 3.09   Mandatory Prepayment

	(a)	 	Proceeds of Permitted High Yield Back to Back Debt. The Borrower shall
forthwith make the following prepayments of the Senior Loans out of the
net proceeds received by the Borrower from the issuance of any Permitted
High Yield Back to Back Debt (in each case, on a pro rata basis and in the
manner contemplated by Section 3.09(e)):

	 	(i)	 	in the event that, following such issuance, the aggregate
amount of Permitted High Yield Back to Back Debt is equal to or less
than $100,000,000, 25% of such Permitted High Yield Back to Back
Debt;
	 
	 	(ii)	 	in the event that, following such issuance, the aggregate
amount of Permitted High Yield Back to Back Debt is greater than
$100,000,000 and equal to or less than $200,000,000, the sum of (x)
$25,000,000 and (y) 50% of the Permitted High Yield Back to Back
Debt that exceeds $100,000,000; and
	 
	 	(iii)	 	in the event that, following such issuance, the aggregate
amount of Permitted High Yield Back to Back Debt is greater than
$200,000,000, the sum of (x) $75,000,000, and (y) 100% of such
Permitted High Yield Back to Back Debt in excess of $200,000,000,

	 	 	provided that in the event that, contemporaneously with the prepayment
required under this Section 3.09(a), the Borrower makes or is required to
make a prepayment under Section 3.09(f) of this Agreement or Section
3.10(f) of the EBRD Loan Agreement or Section 3.09(f) of the NIB Loan
Agreement, the amount that the Borrower is required to prepay under this
Section 3.09(a) shall be equal to the amount calculated in accordance
with paragraphs (i), (ii) and (iii) above, as applicable, less the High
Yield Related Prepayment Proportion of such amount.
	 
	(b)	 	Proceeds of Public Offering; Public Secondary Sale.

	 	(i)	 	Public Offering. If, following a Public Offering by the
Borrower, there is a change in the percentage of the share capital
of the Borrower in respect of which EDC holds a security interest
under the Security Agreement Over Shares, the Borrower shall apply
all proceeds obtained by the Borrower from such Public Offering to
immediately prepay that percentage of the principal amount
outstanding under the Senior Loans as is identified in the table
below under the heading “Percentage of Senior Loans to be Prepaid”
next to the applicable percentage of the Borrower’s aggregate share
capital in respect of which EDC holds a security interest under the
Security Agreement Over Shares (provided that such percentage shall
be of the aggregate amount of share capital of the Borrower issued
and outstanding after such Public Offering takes place), which is
identified in the table below under “Percentage of Share Capital
Secured”, on a pro rata basis (in the manner contemplated in Section
3.09(e)):

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	 	 	Percentage of Senior Loans
	Percentage of Share Capital Secured	 	to be Prepaid
	
	 	

	Greater than 75%
	 	 	0	%
	65% to 75%
	 	 	25	%
	55% to 64.9%
	 	 	50	%
	50.1% to 54.9%
	 	 	70	%

	 	(ii)	 	Public Secondary Sale. If (1) any Shareholder proposes to
sell, transfer, convey or assign any shares in the capital of the
Borrower which are subject to the Security pursuant to a Public
Secondary Sale, and (2) such Shareholder requires a release of the
Security in respect of any or all of such shares in compliance with
the terms of the Share Retention and Subordination Deed (if
applicable) and the Security Agreement Over Shares, then the
Borrower shall provide to EDC notice of such proposed transfer which
notice shall include a request for such a release, and shall prepay
that percentage of the principal amount outstanding under the Senior
Loans as is identified in the table in Section 3.09(b)(i) under the
heading “Percentage of Senior Loans to be Prepaid” next to the
applicable percentage of the Borrower’s aggregate issued and
outstanding share capital in respect of which EDC holds a security
interest under the Security which is identified in the table in
Section 3.09(b)(i) under “Percentage of Share Capital Secured”
(provided that such percentage shall be determined after giving
effect to such release of Security under Section 4.05 of the Share
Retention and Subordination Deed and Section 4.4 of the Security
Agreement Over Shares), on a pro rata basis (in the manner
contemplated in Section 3.09(e)), provided that notwithstanding
anything to the contrary in the Financing Agreements, EDC shall not
be obligated to release or discharge any Security in respect of
shares in the capital of the Borrower pursuant to Section 4.05 of
the Share Retention and Subordination Deed or Section 4.4 of the
Security Agreement Over Shares unless the Borrower has made the
prepayment required under this Section 3.09(b)(ii) in respect of the
transfer of such shares.
	 
	 	(iii)	 	Stock Option Plan. For the purposes of Section 3.09(i) and
(ii), any issuance of shares to employees of the Borrower pursuant
to stock option plans permitted under Section 6.06(a) shall be
deemed to constitute a Public Offering or a Public Secondary Sale,
as applicable.

	(c)	 	Long Term Debt Repayment. The Borrower shall prepay the principal amount
outstanding under the Senior Loans immediately upon and in an amount pro
rata (based on then outstanding amounts under the Senior Loans and any
other Long-term Debt referred to in this Section 3.09(c)) to any
prepayment, repurchase, or early redemption by the Borrower of any other
Long-term Debt (which has been consented to by EDC pursuant to Section
6.02) of the Borrower (other than in respect of any Working Capital
Facility or the Existing Loans) or any repayment of any such Long-term
Debt pursuant to

- 47 -

 

	 	 	any provision of any agreement or note which provides directly or
indirectly for acceleration of repayment in time or amount, in the manner
contemplated in Section 3.09(e).
	 
	(d)	 	Excess Cash. On the fourteenth (14th) day after the end of each
Quarterly Period (the “Excess Cash Mandatory Prepayment Date”), the
Borrower shall prepay the principal amount outstanding of the Senior Loans
on a pro rata basis (in the manner contemplated in Section 3.09(e)),

	 	(i)	 	if the Senior Debt Service Coverage Ratio
calculated by reference to such Quarterly

Period and the 3 preceding Quarterly Periods is less than
1.40, in an amount equal to the lesser of
	 

				
	 	(A)	 	100% of the Excess Cash Flow
calculated by reference to such Quarterly Period and the
three preceding Quarterly Periods; and
	 
	 	(B)	 	the Available Cash Balance,
calculated at the end of such Quarterly Period; and

	 	(ii)	 	if the Senior Debt Service Coverage Ratio
calculated by reference to such Quarterly

Period and the 3 preceding Quarterly Periods is equal to or
greater than 1.40 but less than 1.70, in an amount equal to
the lesser of
	 

				
	 	(A)	 	50% of the Excess Cash Flow
calculated by reference to such Quarterly Period and the
three preceding Quarterly Periods; and
	 
	 	(B)	 	the Available Cash Balance,
calculated at the end of such Quarterly Period;

	 	 	provided, for greater certainty, that for purposes of this Section
3.09(d) Curative Equity shall not be taken into account in calculating
EBITDA for purposes of determining Excess Cash Flow and Senior Debt
Service Coverage Ratio.
	 
	(e)	 	Pro Rata. Any prepayment under this Section 3.09 shall be made and
applied on (i) a pro rata basis between the Senior Lenders in proportion
to their respective principal amounts of Senior Loans outstanding under
the Senior Loan Agreements immediately prior to such prepayment, and (ii)
with respect to the EDC Loan, on a pro rata basis between the Tranche I
EDC Loan and the Tranche II EDC Loan then outstanding in proportion to the
respective principal amounts thereof outstanding immediately prior to such
prepayment and (iii) shall be applied to the outstanding repayment
instalments of the EDC Loan in inverse order of maturity.
	 
	(f)	 	Assignment of Subordinated Financial debt. The Borrower shall provide
notice to EDC at least 30 days prior to incurring any Permitted High Yield
Back to Back Debt, identifying in such notice (i) the anticipated
principal amount of such Permitted High Yield Back to Back Debt and (ii)
if the aggregate principal amount of all Permitted High

- 48 -

 

	 	 	Yield Back to Back Debt (including the Permitted High Yield Back to Back
Debt identified in such notice) exceeds $150,000,000, whether or not an
Assignment of Subordinated Debt will be provided in respect of all
Permitted High Yield Back to Back Debt. If such notice does not specify
that such Assignment of Subordinated Debt will be provided, then EDC will
notify the Borrower within 15 days of receipt of the Borrower’s notice
hereunder whether it requires the Borrower to prepay the EDC Loan at the
time of incurring such Permitted High Yield Back to Back Debt. If EDC
specifies in such notice that it requires the Borrower to prepay the EDC
Loan at the time of incurring such Permitted High Yield Back to Back
Debt, then, unless an Assignment of Subordinated Debt in respect of all
Permitted High Yield Back to Back Debt, is provided to EDC
contemporaneously with the Borrower incurring such Permitted High Yield
Back to Back Debt, the Borrower shall prepay, contemporaneously with
incurring such Permitted High Yield Back to Back Debt, the entire
principal amount outstanding under the EDC Loan and will pay at such time
all accrued interest and other amounts in respect thereof.
	 
	(g)	 	Other Amounts; No Reduction. The Borrower shall pay to EDC, at the same
time as any mandatory prepayment is made under this Section 3.09, all
accrued interest and other amounts payable on the principal amount of the
EDC Loan to be so prepaid and all other amounts due hereunder in respect
of such mandatory prepayment, including without limitation any unwinding
costs, which may arise as provided under Section 3.14. Amounts of the EDC
Loan prepaid by the Borrower under this Section 3.09 may not be reborrowed
and the commitment of EDC to make the Tranche I EDC Loan and the Tranche
II EDC Loan available hereunder, and the amount of the Tranche I EDC Loan
and the Tranche II EDC Loan respectively, shall be permanently reduced by
such prepaid amounts.
	 
	(h)	 	Prepayment Fee. The Borrower shall pay EDC on the prepayment date an
administration charge equal to one eighth of one percent (0.125%) of the
principal amount of the EDC Loan to be prepaid under this Section 3.09.

Section 3.10   Voluntary Prepayment

	(a)	 	The Borrower shall have the right at any time, on not less than 20
Business Days’ prior notice to EDC to prepay on any Interest Payment Date
all or any part of the principal amount of the Senior Loans then
outstanding; provided that:

	 	(1)	 	the Borrower shall pay to EDC at the same time all accrued
interest and other amounts payable on the principal amount of the
EDC Loan to be prepaid and all other amounts due hereunder in
respect of such prepayment, including without limitation any
unwinding costs, which may arise as provided under Section 3.14; and
	 
	 	(2)	 	in the case of a partial prepayment:

				
	 	(i)	 	the USD Equivalent Amount of such prepayment
shall be not less than $10,000,000 (and integral multiples of
$5,000,000);

- 49 -

 

				
	 	(ii)	 	the amount of such prepayment shall be applied
and allocated as follows:

				
	 	(A)	 	first to outstanding repayment
instalments of the EBRD B Loan, in inverse order of
maturity, until such time as the outstanding principal
amount of the EBRD B Loan is reduced to zero (0), and
	 
	 	(B)	 	second, to the outstanding repayment
instalments of the EBRD A Loan, EDC Loan and the NIB
Loan on a pro rata basis in proportion to the respective
principal amounts outstanding immediately prior to such
prepayments under the EBRD A Loan, the EDC Loan and the
NIB Loan, in inverse order of maturity,

		
	 	provided that EDC at its sole discretion upon 10 Business
Days’ written notice to the Borrower may require that such
prepayment be allocated and applied instead between the EDC
Loan and the Senior Loans provided by any other Senior
Lender(s) that delivered a similar notice to the Borrower
with a copy to EDC within such 10 Business Day period, such
allocation to be made on a pro rata basis based on the
principal amounts outstanding under the EDC Loan and such
other Senior Loans immediately prior to such prepayment, in
each case in inverse order of maturity. If EDC delivers such
notice to the Borrower, the prepayment charge payable
pursuant to Section 3.10(b) in respect of such prepayment
shall be payable at the rate identified in Section
3.10(b)(ii) of the EBRD Loan Agreement.

	 	(3)	 	Any such notice of prepayment by the Borrower shall be
irrevocable and binding on the Borrower and, upon delivery of such
notice, the Borrower shall be obligated to prepay the EDC Loan in
accordance with the terms thereof.

	(b)	 	The Borrower shall pay to EDC on the date of prepayment of the EDC Loan
under this Section 3.10 an administration charge equal to,

				
	 	(A)	 	one per cent (1.0%) of the principal amount of
the EDC Loan to be prepaid, if the prepayment occurs on or
before 31 December 2004, or
	 
	 	(B)	 	one half of one percent (0.5%) of the principal
amount of the EDC Loan to be prepaid, if the prepayment occurs
after 31 December 2004 but on or before 31 December 2005; or
	 
	 	(C)	 	one eighth of one percent (0.125%) of the
principal amount of the EDC Loan to be prepaid if the
prepayment occurs at any time after 31 December 2005.

	(c)	 	The Borrower shall not prepay all or any part of the EDC Loan except at
the times and the manner expressly provided for in this Agreement.
	 
	(d)	 	Amounts of the EDC Loan prepaid by the Borrower under this Section 3.10
may not be reborrowed and the commitment of EDC to make the EDC Loan
available hereunder shall be permanently reduced by such prepaid amounts.

- 50 -

 

	(e)	 	Any prepayment under this Section 3.10 shall be made on a pro rata basis
between the Tranche I EDC Loan and the Tranche II EDC Loan.

Section 3.11   Payments

	(a)	 	Subject to Section 3.11(b) all payments of principal, interest, charges,
commissions, fees, expenses and any other amounts due to EDC under this
Agreement shall be made, without set-off or counterclaim, in Dollars.
	 
	(b)	 	All payments in respect of costs and expenses of EDC due to EDC under
this Agreement shall be made in the currency in which such costs and
expenses were invoiced. All payments of charges payable under Section
3.05 shall be made, without set-off or counterclaim, in Dollars.
	 
	(c)	 	All payment of principal, interest, charges, commissions, fees, expenses
and any other amounts due to EDC under this Agreement shall be made for
value on the due date, to such account and in such place as EDC may from
time to time designate by not less than four (4) Business Days’ notice to
the Borrower.
	 
	(d)	 	The sums to be disbursed by EDC to the Borrower hereunder shall be
payable in Dollars, for value, unless otherwise agreed by the Borrower and
EDC, on the value date requested by the Borrower in its Disbursement
application and to such correspondent account in New York City as the
Borrower may designate in its Disbursement application (with instructions
to transfer such sums, at the Borrower’s risk and expense, to such account
as the Borrower may designate in its Disbursement application).
	 
	(e)	 	If the due date for any payment under this Agreement would otherwise fall
on a day which is not a Business Day, then such payment shall instead be
due on the next succeeding Business Day.
	 
	(f)	 	EDC shall have the right, to the fullest extent permitted by law, to set
off any amount owed by EDC to the Borrower, whether or not matured,
against any amount then due and payable by the Borrower under any
Financing Agreement, whether or not EDC has demanded payment by the
Borrower of such amount and regardless of the currency or place of payment
of either such amount. EDC shall have the right, to the fullest extent
permitted by law, to deduct from the proceeds of any Disbursement any
charges, commissions, fees, expenses and other amounts then due and
payable by the Borrower to EDC under any Financing Agreement and the
credit advice of EDC shall reflect such deduction.

Section 3.12   Insufficient Payments

	(a)	 	If EDC at any time receives less than the full amount then due and
payable to it under this Agreement, EDC shall have the right to allocate
and apply such payment in any way or manner and for such purpose or
purposes under this Agreement as EDC in its sole discretion determines,
notwithstanding any instruction that the Borrower may give to the
contrary.

- 51 -

 

	(b)	 	The Borrower shall indemnify EDC against any losses resulting from a
payment being received, or a claim being filed or an order or judgement
being given, hereunder in a currency or place other than the currency and
place specified in Section 3.11(a), (b) and (c). The Borrower shall pay
such additional amount as is necessary to enable EDC to receive, after
conversion to such currency at a market rate and transfer to such place,
the full amount due to EDC hereunder in the currency and at the place
specified in Section 3.11(a),(b) and (c).

Section 3.13   Taxes

	(a)	 	The Borrower shall pay or cause to be paid all present and future taxes,
duties, fees, royalties, deductions, imposts and other charges of
whatsoever nature, together with any interest thereon and penalties with
respect thereto, now or at any time hereafter levied or imposed by Romania
or the Government of Romania, or by any department, agency, political
subdivision or taxing or other authority thereof or therein, or by any
organization of which Romania is a member, or by any jurisdiction out of
which or through which payments hereunder are made, on or in connection
with the payment of any amounts due to EDC under this Agreement.
	 
	(b)	 	All payments of principal, interest and other amounts due to EDC under
this Agreement shall be made free and clear of, and without deduction or
withholding for or on account of, any taxes, duties, fees, royalties,
deductions, imposts, or charges, provided, however, that, in the event
that the Borrower is prevented by operation of law or otherwise from
making such payments free and clear of such deductions or withholdings,
the principal, interest or other amount (as the case may be) due under
this Agreement shall be increased to such amount as may be necessary to
remit to EDC the full amount it would have received had such payment been
made without such deductions or withholdings.

Section 3.14   Unwinding Costs

	(a)	 	If, for any reason (including, without limitation, an acceleration
pursuant to Section 7.02, 7.03 or 7.04), any portion of the EDC Loan which
is subject to a variable interest rate in accordance with Section 3.06(a)
becomes due and payable on a date other than the last day of an Interest
Period, the Borrower shall pay to EDC on demand the amount, if any, by
which:

	 	(1)	 	the interest which would have accrued on such portion of the
EDC Loan from the date on which such portion of the EDC Loan has
become due and payable to the last day of the then current Interest
Period applicable to such portion of the EDC Loan at a rate equal to
LIBOR, in each case for such Interest Period;

	 	 	exceeds:

	 	(2)	 	the interest which EDC would be able to obtain if it were to
place an amount equal to such portion of the EDC Loan on deposit
with a leading bank in the London interbank market, for the period
commencing on the date on which such portion of the EDC Loan has
become due and payable and ending on the last day of the then
current Interest Period.

- 52 -

 

	(b)	 	If any overdue amount is paid on a date other than the last day of a
Default Interest Period, the Borrower shall pay to EDC on demand the
amount, if any, by which:

	 	(1)	 	the interest which would have accrued on such overdue amount
from the date of receipt of such overdue amount to the last day of
the then current Default Interest Period at a rate equal to the rate
specified in Section 3.07(a)(3) for such Default Interest Period;

	 	 	exceeds:

	 	(2)	 	the interest which EDC would be able to obtain if it were to
place an amount equal to such overdue amount on deposit with a
leading bank in the London interbank market, for the period
commencing on the date of receipt of such overdue amount and ending
on the last day of the then current Default Interest Period.

	(c)	 	A certificate of EDC as to any amount payable under this Section 3.14
shall be final, conclusive and binding on the Borrower unless shown by the
Borrower to the satisfaction of EDC to contain clerical error.

Section 3.15   Increased Costs

The Borrower shall, from time to time on demand of EDC, reimburse EDC for any
net incremental costs to EDC of making or maintaining, or committing to make,
the EDC Loan which result from the introduction of, or any change in, any
applicable law or any applicable guideline or policy (including guidelines or
policies which, if not having the force of law, are customarily complied with
by banks or international financial institutions), or any change in the
interpretation or application thereof by any governmental or regulatory
authority charged with the administration thereof subsequent to the date of
this Agreement. A certificate of EDC as to the amount of such net incremental
costs shall be final, conclusive and binding on the Borrower unless shown by
the Borrower to the satisfaction of EDC to contain clerical error.

Section 3.16   Illegality

Notwithstanding anything in this Agreement, if it is or becomes unlawful in any
applicable jurisdiction for EDC to make, maintain or fund the EDC Loan, then:

	 	(1)	 	upon request by EDC, the Borrower shall, on the next Interest
Payment Date or such earlier date as EDC may specify, prepay that
portion of the principal amount of the EDC Loan which EDC notifies
to the Borrower as being affected by such change, together with all
accrued interest and other amounts payable thereon; and
	 
	 	(2)	 	upon notice from EDC, the right of the Borrower to
Disbursement of any portion of the EDC Loan which EDC notifies to
the Borrower as being affected by such change and which has not
theretofore been disbursed shall terminate immediately.

- 53 -

 

Section 3.17   Loan Account

EDC shall open and maintain on its books a Dollar account in the Borrower’s
name showing the Disbursements and repayments thereof and the computation and
payment of interest, charges, commissions, fees and other amounts due and sums
paid hereunder in respect of the EDC Loan. In the absence of manifest error,
such accounts shall be final, conclusive and binding on the Borrower as to the
amount at any time due from the Borrower.

ARTICLE IV — CONDITIONS PRECEDENT

Section 4.01   Tranche I EDC Loan Disbursement

The obligation of EDC to make the Disbursement of the Tranche I EDC Loan shall
be subject to the prior fulfillment, in form and substance satisfactory to EDC,
of the following conditions precedent:

	(a)	 	Financing Agreements. EDC shall have received duly executed and (where
appropriate) legalized originals of the following agreements:

	 	(1)	 	this Agreement;
	 
	 	(2)	 	the EBRD Loan Agreement;
	 
	 	(3)	 	the NIB Loan Agreement;
	 
	 	(4)	 	the Agency Agreement;
	 
	 	(5)	 	the Share Retention and Subordination Deed;
	 
	 	(6)	 	the Borrower Power of Attorney;
	 
	 	(7)	 	the Shareholder Power of Attorney, executed by each
Shareholder; and
	 
	 	(8)	 	the Security Sharing and Intercreditor Agreement.

	(b)	 	Other Agreements. EDC shall have received copies, certified by an
officer of the Borrower, of the following agreements:

	 	(1)	 	the Licenses;
	 
	 	(2)	 	the Romtelecom Interconnection Agreement;
	 
	 	(3)	 	the Cooperation Agreement;
	 
	 	(4)	 	any Working Capital Facility Agreement currently in effect;
	 
	 	(5)	 	the Contract of Association;
	 
	 	(6)	 	the Orange Romania Interconnection Agreement;

- 54 -

 

	 	(7)	 	the Hedging Agreements, if any; and
	 
	 	(8)	 	other agreements identified by EDC from the agreements listed
on Schedule A hereto.

	(c)	 	Security. The Security shall have been validly created and constitute a
first ranking security interest (subject only, where applicable, to the
Existing Security) in a manner satisfactory to EDC and EDC shall have
received duly executed originals of the following Security Documents,
together with any document, recording, filing, notification, registration,
notarization or other evidence required, in the opinion of EDC, for the
creation, validity, perfection or priority of the Liens of EDC in or under
such Security Documents:

	 	(1)	 	the Security Agreement Over Movables;
	 
	 	(2)	 	the Insurance Assignment;
	 
	 	(3)	 	the Security Agreement Over Shares;
	 
	 	(4)	 	the Security Agreement Over Accounts;
	 
	 	(5)	 	the Assignment of Receivables; and
	 
	 	(6)	 	the Offshore Accounts Charge.

	(d)	 	Charters. EDC shall have received certified copies of the Charters (and,
if relevant, certificates of registration and good standing) of the
Borrower and, at the request of EDC, any other parties to the Financing
Agreements, each as amended to date.
	 
	(e)	 	Corporate Authorizations. EDC shall have received certified copies of
all corporate (including, if required, shareholder) authorizations and
approvals necessary for the due execution, delivery and performance of the
Financing Agreements, and any other documents in implementation thereof,
by the Borrower, the Shareholders and, at the request of EDC, any other
parties thereto and for the transactions contemplated thereby, including
the authorizations of the persons signing the Financing Agreements to sign
such documents and to bind the respective parties thereby.
	 
	(f)	 	Specimen Signatures. EDC shall have received:

	 	(1)	 	a certificate of incumbency and authority of the Borrower
substantially in the form of Exhibit B; and
	 
	 	(2)	 	a certificate of an appropriate officer of each Shareholder
and, at the request of EDC, any other party to the Financing
Agreements, certifying the specimen signature of each person
authorised to sign, on behalf of such party, the Financing
Agreements to be entered into and performed by such party or, if
agreed by EDC, in place of such certificate, a copy of the power of
attorney authorising each

- 55 -

 

	 	 	 	person to sign, on behalf of such Shareholder or other party, the
Financing Agreements to be entered into and performed by such
party.

	(g)	 	Governmental and Other Approvals. EDC shall have received copies,
certified by an officer of the Borrower, of all governmental, creditors’
and other licenses, approvals, consents, filings and registrations
necessary for the execution, delivery and performance of the Financing
Agreements by the Borrower, the Shareholders and, at the request of EDC,
any other parties thereto and for the transactions contemplated thereby,
including, without limitation:

	 	(1)	 	the borrowing by the Borrower under the Senior Loan
Agreements;
	 
	 	(2)	 	the creation of the Security;
	 
	 	(3)	 	the carrying out of the Project;
	 
	 	(4)	 	the remittance to EDC in the Loan Currency of all monies
payable in respect of the Financing Agreements; and
	 
	 	(5)	 	the carrying on of the business of the Borrower as it is
presently carried on and as it is contemplated to be carried on.

	(h)	 	Insurance. EDC shall have received original insurance certificates from
the Borrower’s insurer or insurance broker showing that all insurance
policies and endorsements required pursuant to Section 5.04 are in full
force and effect.
	 
	(i)	 	Auditors Letter. EDC shall have received a copy of a letter to the
Auditors from the Borrower substantially in the form of Exhibit C.
	 
	(j)	 	Process Agent Appointments. EDC shall have received written confirmation
from the agents for service of process appointed by the Borrower, each of
the Shareholders, TIWC, ClearWave’s Majority Shareholder, ClearWave and
Vodafone Technical pursuant to the Financing Agreements of their
acceptances of such appointments.
	 
	(k)	 	Legal Opinions. EDC shall have received the following legal opinions,
addressed to EDC and regarding such matters incident to the transactions
contemplated by the Financing Agreements and Project Agreements as EDC
reasonably requests:

	 	(1)	 	the opinion of Nestor Nestor Diculescu Kingston Petersen,
special Romanian counsel to the Borrower;
	 
	 	(2)	 	the opinion of Loyens & Loeff, special Dutch counsel to TIWC,
ClearWave, ClearWave Holdings and Vodafone Europe;
	 
	 	(3)	 	the opinion of Fasken, Martineau, DuMoulin LLP, special
Canadian counsel to ClearWave’s Majority Shareholder;

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	 	(4)	 	the opinion of Stoica & Associates, special Romanian counsel
to the Senior Lenders;
	 
	 	(5)	 	the opinion of McCarthy Tétrault, special English counsel to
the Senior Lenders;
	 
	 	(6)	 	the opinion of Antis Triantafyllides & Sons, special Cyprus
counsel to the Borrower;
	 
	 	(7)	 	the opinion of Baker McKenzie, special Dutch counsel to
Deraso Holding B.V.

	(l)	 	Fee Letter. EBRD and EDC shall have entered into a letter agreement with
respect to the fees payable to EDC in connection with the EDC Loan.
	 
	(m)	 	Financial Plan. EDC shall have received the Base Case Financial Forecast
and a certificate of an Authorised Signatory of the Borrower approving
such Base Case Financial Forecast in form and substance satisfactory to
EDC.
	 
	(n)	 	Use of Proceeds. The proceeds of such Disbursement shall be needed and
used by the Borrower solely for the purposes identified in Section 3.02(a)
and EDC shall have received such evidence as to the proposed utilization
of the proceeds of such Disbursement as EDC reasonably requests.
	 
	(o)	 	Disbursement Pro Rata. EDC shall not be obligated to make the Tranche I
EDC Loan Disbursement in any amount other than an amount such that on the
date of such Disbursement the respective aggregate amounts disbursed or to
be disbursed on such date under the Tranche I EBRD Loan, the Tranche I EDC
Loan and the Tranche I NIB Loan, shall be in the following proportions:
230:35:35.
	 
	(p)	 	Conditional Discharges. The Conditional Discharge Escrow Agent shall
have received the Conditional Discharge Escrow Instructions and the
following conditional discharge instrument (the “Conditional Discharge”)
duly executed by all parties thereto (other than by EBRD, which will
execute the Conditional Discharge at the time and in the manner specified
in the Conditional Discharge Escrow Instructions), to be held by the
Conditional Discharge Escrow Agent and to be irrevocably released from
escrow immediately upon delivery to the Conditional Discharge Escrow Agent
of the Existing Loans Repayment Confirmations and the dating of the
Conditional Discharge by the Conditional Discharge Escrow Agent:

		
	 	a discharge and release in respect of the Existing Security under, inter
alia, the following instruments (each as defined in the Existing EDC Loan
Agreement):

	 	(A)	 	Enterprise Mortgage;
	 
	 	(B)	 	Share Pledge (including without limitation the
Guarantee and Share Pledge Agreement dated January 28, 1999,
July 24, 2000 and September 28, 2001);
	 
	 	(C)	 	Accounts Agreement;

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	 	(D)	 	Borrower’s Negative Covenant Agreement; and
	 
	 	(E)	 	All Shareholder Negative Covenant Agreements,
	 
	 	(F)	 	Insurance Assignment; and
	 
	 	(G)	 	Offshore Accounts Pledge

		
	 	executed by, inter alia, the Borrower, the Senior Lenders and the EKN
Lenders, all in form and substance satisfactory to EDC.

Section 4.02 First Tranche II EDC Loan Disbursement

The obligation of EDC to make the first Disbursement of the Tranche II EDC Loan
shall be subject to the prior fulfilment, in form and substance satisfactory to
EDC, of the following conditions precedent:

	(a)	 	Tranche I EDC Loan. EDC shall have made the Disbursement of the entire
Tranche I EDC Loan and all conditions precedent set forth in Section 4.01
shall be satisfied.
	 
	(b)	 	Existing Loans Indebtedness and Existing Security.

	 	(1)	 	The Existing Loans Indebtedness shall have been repaid in
full and EDC shall have received the Existing Loans Repayment
Confirmations.
	 
	 	(2)	 	The Conditional Discharge shall have become fully effective
and unconditional and shall have been released from escrow and
delivered to EDC, and the Existing Security shall have been fully
released and discharged, and all registrations and other steps
required to be made in connection with such release and discharge
(including without limitation all applicable registrations in the
Electronic Archive, the Trade Register, the Shareholders Register of
the Borrower and any other applicable registries) shall have been
made in a manner satisfactory to EDC such that the Security granted
to secure the Senior Loan Agreements shall have become first ranking
in all respects in a manner satisfactory to EDC.

	(c)	 	Legal Opinions. EDC shall have received the following legal opinions,
addressed to EDC and regarding such matters with respect to the discharge
of the Existing Security, and the ranking of the Security, as EDC
reasonably requests:

	 	(1)	 	the opinion of Nestor Nestor Diculescu Kingston Petersen,
special Romanian counsel to the Borrower; and
	 
	 	(2)	 	the opinion of Stoica & Associates, special Romanian counsel
to the Senior Lenders.

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Section 4.03 All Disbursements

The obligation of EDC to make any Disbursement shall also be subject to the
fulfillment, in form and substance satisfactory to EDC, of the conditions that,
on the date of the Borrower’s application for such Disbursement and on the date
of such Disbursement:

	(a)	 	Continuing Validity of Documents. All agreements, documents and
instruments delivered to EDC pursuant to Section 4.01 and/or Section 4.02,
as applicable, shall be in full force and effect and unconditional (except
for this Agreement having become unconditional, if that is a condition of
any such agreement, and except to any extent that such agreements,
documents and instruments have been amended or replaced by other
agreements, documents or instruments, in each case acceptable to EDC).
	 
	(b)	 	Representations and Warranties. The representations and warranties made
or confirmed by the Borrower in the Financing Agreements and Project
Agreements shall be true on and as of such dates with the same effect as
though such representations and warranties had been made on and as of such
dates. To any extent that such representations and warranties cannot be
confirmed by the Borrower as being true as of such dates, the Borrower
shall provide the further information necessary to make the
representations and warranties true as of such dates in light of such
further information, and such further information shall be in form and
content acceptable to EDC.
	 
	(c)	 	No Default. No Event of Default or Potential Event of Default shall have
occurred and be continuing or shall, in the reasonable opinion of EDC,
result from such Disbursement or be imminent and the Borrower shall not,
as a result of such Disbursement, be in violation of its Charter or any
provision contained in any material agreement or instrument to which the
Borrower is a party (including this Agreement) or by which the Borrower is
bound, or any law applicable to the Borrower.
	 
	(d)	 	No Material Adverse Change. Nothing shall have occurred which, in the
reasonable opinion of EDC, might have a material adverse effect on the
Project, the Borrower’s business, operations or financial condition or the
ability of the Borrower to perform any of its obligations under any
Financing Agreement or Project Agreement.
	 
	(e)	 	Use of Proceeds. In respect of any Disbursement of the Tranche II EDC
Loan, the proceeds of such Disbursement shall be needed and used by the
Borrower solely for the purposes of Capital Expenditures incurred or paid
for after the date of this Agreement or for payment of the UMTS License
Costs in connection with the Project and EDC shall have received such
evidence as to the proposed utilisation of the proceeds of such
Disbursement and the utilisation of the proceeds of any prior Disbursement
as EDC reasonably requests.
	 
	(f)	 	Disbursement Application. EDC shall have received an original of the
Borrower’s timely application for such disbursement substantially in the
form of Exhibit A.

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	(g)	 	Disbursements Pro Rata. EDC shall not be obligated to make a
Disbursement under the Tranche II EDC Loan other than in an amount such
that on the date of such Disbursement the respective aggregate amounts
disbursed and to be disbursed on such date under the Tranche II EBRD Loan,
the Tranche II EDC Loan and the Tranche II NIB Loan shall be in the
following proportions: 230:35:35.
	 
	(h)	 	Failure of EBRD/NIB Disbursement. In the event that any Disbursement is
made by EDC and corresponding pro rata amounts are not so disbursed
pursuant to subsection 4.03(g) by EBRD or NIB, then the Borrower shall be
obligated to remit to EDC the amount of such Disbursement immediately upon
being notified by EDC in such regard, along with any interest accruing
thereon during the period that the Borrower held such amount.
	 
	(i)	 	Fees and Expenses. All fees and expenses due and payable pursuant to
Sections 3.05 and 5.12 and the fee letter agreement identified in Section
4.01(l) at the time of the Disbursement shall have been paid in full.

ARTICLE V —  AFFIRMATIVE COVENANTS

Unless EDC otherwise agrees in writing:

Section 5.01 Project Implementation and Use of Proceeds

The Borrower shall carry out the Project in accordance with the Licenses and
cause the proceeds of the Senior Loans to be applied exclusively in the manner
provided in Sections 3.02, 4.01(n) and 4.03(e).

Section 5.02 Maintenance and Continuity of Business and Compliance with Obligations

The Borrower shall maintain its corporate existence in compliance with all
applicable laws. The Borrower shall conduct its business with due diligence
and efficiency, in accordance with sound engineering, financial and business
practices and in compliance with all applicable laws, and shall comply with all
agreements to which it is a party or by which it or any of its properties or
assets is bound.

Section 5.03 Environment, Health and Safety

The Borrower shall conduct its business with due regard to the environment,
health and safety. The Borrower shall carry out the Project in accordance with
environmental standards in effect from time to time in Romania and with
environmental standards existing in the European Union on the date hereof (or,
in the event that such standards do not exist in the European Union, as set
forth in the World Bank’s Environmental Guidelines or any publication of the
World Bank replacing its Environmental Guidelines).

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Section 5.04 Insurance

The Borrower shall maintain, at a minimum, liability, property damage, business
interruption, contractor’s all-risks and public liability insurance against
loss, damage and third party liability in a manner and with insurers
satisfactory to EDC. EDC shall be named, in accordance with the Insurance
Assignment, as loss payee (except with respect to third party liability
insurance) and additional insured under the relevant insurance policies and the
interests of EDC shall be noted thereon.

Section 5.05 Accounting

	(a)	 	The Borrower shall maintain an accounting and cost control system and
management information system satisfactory to EDC.
	 
	(b)	 	The Borrower shall maintain books of account and other records adequate
to present a true and fair view of the financial condition of the Borrower
and the results of its operations in conformity with Generally Accepted
Accounting Principles and RAS.
	 
	(c)	 	The Borrower shall maintain as its auditors a firm of independent
accountants acceptable to EDC. The Borrower shall authorise, by a letter
substantially in the form of Exhibit C, the Auditors to communicate
directly with EDC at any time regarding the Borrower’s accounts and
operations.

Section 5.06 Continuing Governmental and Other Approvals

     The Borrower shall obtain and maintain in force (or, where appropriate, renew)
all governmental, corporate, creditors’, shareholders’ and other necessary
licenses, approvals, consents, filings, permits, rulings and registrations
required for the purposes described in Sections 4.01(e) and 4.01(g). The
Borrower shall perform and observe all the conditions and restrictions
contained in, or imposed on the Borrower by, such licenses, approvals,
consents, filings and registrations.

Section 5.07 Security

	(a)	 	General. The Borrower shall create, perfect, maintain and, as
appropriate, renew the Security in a manner satisfactory to EDC.
	 
	(b)	 	Existing Security. The Borrower shall, immediately upon receipt of the
Existing Loans Repayment Confirmations and a copy of the executed
Conditional Discharge, cooperate with, and assist, EDC and its counsel in
discharging and releasing the Existing Security in a manner satisfactory
to EDC, such that the Security shall become first ranking in priority and
the Borrower shall take such other steps and actions as may be necessary
or advisable to ensure that the Security becomes first ranking in a manner
satisfactory to EDC.
	 
	(c)	 	Immovables. Each time that the Borrower acquires immovable tangible
assets, in one or in a series of related transactions, having an aggregate
value in excess of $3,000,000, the Borrower shall immediately notify EDC
and shall (i) as soon as possible but in any event within thirty days,
provide to EDC an Immovables Hypothec with respect to such immovable
tangible assets shall apply for registration of such Immovables Hypothec
in

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	 	 	the appropriate registers (and deliver to EDC such register’s
acknowledgment of such application being made) and (ii) shall take all
steps to ensure such registration takes place as soon as possible, all in
order to provide in favour of the Secured Parties a first priority
security interest with respect to such immovable tangible assets.
	 
	(d)	 	Movables. Each six months after the date hereof, the Borrower shall
provide to EDC an updated current list of all of the Borrower’s movable
assets, tangible and intangible, including lists of Material Agreements in
compliance with Section 4.1(e) of the Security Agreement Over Movables,
and shall forthwith take any other steps and actions necessary or
advisable to ensure that the Secured Parties have a first ranking security
interest (subject only to Permitted Liens) in respect of all of the
Borrower’s movable assets, tangible and intangible present and future,
under the Security Agreement Over Movables in accordance with all
requirements of Romanian law.
	 
	(e)	 	Shares. The Borrower shall take any action required of it in order that
at all times 100% of the shares (and votes associated therewith) of the
Borrower shall be effectively subject to the Security Agreement Over
Shares, subject to Section 4.05 of the Share Retention and Subordination
Deed and Section 4.4 of the Security Agreement Over Shares. The Borrower
shall sign and register such documents and take such other steps as are
necessary including without limitation complying with its obligations
under the Security Agreement Over Shares to update the list of shares in
respect of which a security interest is granted pursuant to the Security
Agreement Over Shares and to ensure that the Security Agreement Over
Shares applies in respect of any shares of the Borrower held by the
Shareholders from time to time as necessary to comply with the foregoing
requirement that at all times 100% of the total shares (and votes
associated therewith) of the Borrower remain subject to the Security
Agreement Over Shares subject to Section 4.05 of the Share Retention and
Subordination Deed and Section 4.4 of the Security Agreement Over Shares.
	 
	(f)	 	Accounts. The Borrower shall ensure that at all times payments made to
the Borrower (including under any Project Agreement) are deposited in
Borrower Accounts in respect of which the Secured Parties and Working
Capital Lenders have a pledge or other security interest pursuant to the
Security Agreement Over Accounts or, in respect of Borrower Accounts held
in banks outside of Romania, such other Security Document as may be in
form and substance satisfactory to EDC.
	 
	(g)	 	Roaming Revenues. To the extent the Borrower has any Lien in respect of
any Deposit (as defined in the Offshore Accounts Charge), whether pursuant
to the Cibernet Financial Net Settlement Regulations dated March 14, 1997
or otherwise, such Lien in favour of the Borrower shall in all respects be
subordinate and postponed to the Security and the Borrower will take no
action in respect of such Lien except any action specifically requested by
the Senior Lenders.

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	(h)	 	Assignment of Subordinated Debt. If the Borrower delivers a notice to
EDC pursuant to Section 3.09(f) in respect of any Permitted High Yield
Back to Back Debt, and if the aggregate principal amount of all Permitted
High Yield Back to Back Debt (including the Permitted High Yield Back to
Back Debt identified in such notice) exceeds $150,000,000, and if

	 	(i)	 	the Borrower specifies in such notice that an
Assignment of Subordinated Debt will be provided to EDC in
respect of all of the Borrower’s Permitted High Yield Back to
Back Debt, or
	 
	 	(ii)	 	the Borrower specifies in such notice that such
Assignment of Subordinated Debt will not be provided to EDC or
does not specify in such notice whether such Assignment of
Subordinated Debt will be provided to EDC, EDC requires in a
notice delivered under Section 3.09(f) that the Borrower
prepay in full the EDC Loan and the Borrower fails to make
such prepayment contemporaneously with incurring the Permitted
High Yield Back to Back Debt,

		
	 	then the Borrower shall ensure that EDC is provided with an Assignment of
Subordinated Debt in respect of all of the Borrower’s Permitted High
Yield Back to Back Debt prior to or contemporaneously with, and as a
condition to, the Borrower incurring the Permitted High Yield Back to
Back Debt identified in the notice delivered by the Borrower under
Section 3.09(f).

	(i)	 	Acknowledgement and Non-disturbance Agreement. The Borrower shall ensure
that the Acknowledgement and Non-disturbance Agreement is entered into and
a fully executed original thereof is delivered to EDC as soon as
practicable and in any event within 30 days of the date hereof.

Section 5.08 Taxes

	(a)	 	The Borrower shall pay when due all of its taxes, rates, charges and
assessments, including without limitation any taxes, rates, charges and
assessments against any of its properties, other than taxes, rates,
charges or assessments which are being contested in good faith and by
proper proceedings and as to which adequate reserves have been set aside
for the payment thereof. The Borrower shall make timely filings of all
tax returns and governmental reports required to be filed or submitted
under any applicable law.
	 
	(b)	 	The Borrower shall pay all taxes (including stamp taxes), duties, fees or
other charges payable on, or in connection with, the execution, issue,
delivery, registration, legalisation or notarization of any Financing
Agreement, any Project Agreement or any other document related to this
Agreement. Upon notice from EDC, the Borrower shall pay to EDC, or
reimburse EDC for, an amount equal to any such taxes, duties, fees or
other charges levied on or paid by EDC.

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Section 5.09 Project Agreements

The Borrower shall maintain all Project Agreements to which the Borrower is a
party in full force and effect without material modification and perform its
obligations under, and not commit any breach of or default under, any such
Project Agreement. The Borrower shall promptly upon any proposed amendment of
a Project Agreement, provide a copy of such amendment to EDC.

Section 5.10 Financial Ratios

	(a)	 	The Borrower shall ensure that its financial condition shall be such
that:

	 	(i)	 	Total Financial Debt to EBITDA Ratio Subject to Section
5.10(b), the Total Financial Debt to EBITDA Ratio shall be less than
or equal to 2.00.
	 
	 	(ii)	 	Senior Debt to EBITDA Ratio Subject to Section 5.10(b), from
the date hereof up to and including 31 December 2004, the Senior
Debt to EBITDA Ratio shall be less than or equal to 1.50 and on each
Quarter Date after 31 December 2004 the Senior Debt to EBITDA Ratio
shall be less than or equal to 1.25;
	 
	 	(iii)	 	Total Financial Debt Service Coverage Ratio Subject to
Section 5.10(b), the Total Financial Debt Service Coverage Ratio
shall be equal to or greater than 1.25;
	 
	 	(iv)	 	Senior Debt Service Coverage Ratio Subject to Section
5.10(b), the Senior Debt Service Coverage Ratio shall be equal to or
greater than 1.40; and
	 
	 	(v)	 	Total Financial Debt to Equity Ratio Subject to Section
5.10(b), from the date hereof to and including 31 December 2003, the
Total Financial Debt to Equity Ratio shall be equal to or less than
2.00 and on each Quarter Date after 31 December 2003, the Total
Financial Debt to Equity Ratio shall be equal to or less than 1.75;

		
	 	provided that the Borrower may cure any actual or anticipated breach of
its covenants under this Section 5.10(a) by providing additional
shareholder funding in the form of equity or Permitted Quasi Equity (such
funding referred to as “Curative Equity”), which Curative Equity must be
contributed prior to or within 30 days after the date of the breach,
provided that such cure shall be used:

	 	(A)	 	in aggregate, not more than four times;
	 
	 	(B)	 	not more than two times in any calendar year; and
	 
	 	(C)	 	not in each of any two consecutive Quarterly
Periods.

		
	 	For purposes of determining compliance with this Section 5.10(a), the
amount of any Curative Equity permitted hereunder shall be included as a
positive number in the determination of EBITDA as of the date on which
such Curative Equity is contributed.

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	(b)	 	Financial Testing

		
	 	The financial covenants set out in this Section 5.10 shall be tested on
each Quarter Date by reference to the Financial Statements as of such
date and each Compliance Certificate delivered pursuant to Section 5.13.
The period of calculation in respect of which each of the ratios
identified in paragraphs (a)(i) to (iv) above is to be calculated shall
be each Quarterly Period and the immediately preceding three Quarterly
Periods.

	(c)	 	Accounting Terms

		
	 	All accounting expressions which are not otherwise defined herein shall
be construed in accordance with Generally Accepted Accounting Principles.

Section 5.11 Further Documents

The Borrower shall execute all such other documents and instruments and do all
such other acts and things as EDC may reasonably determine are necessary or
desirable to give effect to the provisions of the Financing Agreements and the
Project Agreements and to cause the Financing Agreements to be duly registered,
legalised, notarised and stamped in any applicable jurisdiction. Without
limiting the generality of the foregoing, the Borrower shall promptly provide
to EDC certified translations into Romanian or into English, as applicable, of
any such documents and instruments, or of any of the Financing Agreements, as
requested by EDC from time to time. The Borrower hereby irrevocably appoints
and constitutes EDC as the Borrower’s true and lawful attorney with right of
substitution (in the name of the Borrower or otherwise) to execute such
documents and instruments and to do such acts and things (if the Borrower fails
to do so within such reasonable period of time as may be specified by EDC) in
the name of and on behalf of the Borrower in order to carry out the provisions
hereof.

Section 5.12 Costs and Expenses

	(a)	 	The Borrower shall, whether or not any Disbursement is made, pay to EDC
or as EDC may direct, within 30 days of EDC furnishing to the Borrower the
invoice therefor, all reasonable out-of-pocket costs and expenses
(including, without limitation, travel expenses and the fees and expenses
of outside counsel to the Senior Lenders and the Agent and all other
financial, accounting, engineering, environmental, insurance and other
consulting fees and expenses) incurred by the Senior Lenders and the Agent
in connection with the following three matters:

	 	(1)	 	the assessment, preparation, negotiation and arrangement of
the EDC Loan by EDC;
	 
	 	(2)	 	the preparation, review, negotiation, execution and, where
appropriate, registration, legalization and notarization, as
applicable, of the Financing Agreements, the Project Agreements, the
other Material Agreements, and the Security and any other documents
related thereto; and
	 
	 	(3)	 	the giving of any legal opinions hereunder.

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	(b)	 	In addition, the Borrower shall pay to EDC or as EDC may direct, on
demand, all further fees, costs and expenses (including, without
limitation, legal fees and expenses) incurred by EDC (in each case as may
be set forth in an invoice along with any supporting documentation):

	 	(1)	 	in the administration of the Financing Agreements;
	 
	 	(2)	 	in the determination of whether there has occurred an Event
of Default or Potential Event of Default;
	 
	 	(3)	 	in respect of the preservation or enforcement of any of its
rights under any Financing Agreement and the collection of any
amount owing to EDC; and
	 
	 	(4)	 	in connection with the assessment, preparation, review,
negotiation, execution and, where appropriate, registration and
notarization of any amendment to or waiver of any Financing
Agreement, any Project Agreement, any other Material Agreement, or
any other document related thereto.

Section 5.13 Furnishing of Information

	(a)	 	As soon as available but, in any event, within 45 days after the end of
each Quarterly Period of each Financial Year, the Borrower shall furnish
to EDC:

	 	(1)	 	two copies of the Borrower’s complete unaudited Financial
Statements for such Quarterly Period prepared in Dollars in
accordance with Generally Accepted Accounting Principles and in Lei
in accordance with RAS and in each case in a form satisfactory to
EDC and, if requested by EDC, certified by an Authorized Signatory
of the Borrower;
	 
	 	(2)	 	a management discussion and analysis of results for such
Quarterly Period, including a report on any factors materially and
adversely affecting or which might materially and adversely affect
the Borrower’s business, operations or financial condition or a
statement that there are no such factors;
	 
	 	(3)	 	a report, in a form satisfactory to EDC, acting reasonably,
on the implementation and progress of the Project, including;

	 	(i)	 	at all times from and after the date on which the
Borrower obtains the UMTS License and until such time as the
Borrower achieves UMTS License Compliance, a statement
regarding the progress of the Borrower in meeting the
conditions of the UMTS License (including without limitation,
the coverage of the services provided by the Borrower’s UMTS
Network and the coverage requirements imposed by the Ministry,
if any), and identifying any cases of non-compliance with the
UMTS License and any fines or penalties paid or imposed in
respect thereof;
	 
	 	(ii)	 	the mark-to-market valuation of all hedging and
similar derivative transactions outstanding on the last day of
such Quarterly Period;

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	 	(iii)	 	a list of all hedging and similar derivative
transactions outstanding as of the last day of such Quarterly
Period with a notional amount whose USD Equivalent Amount is
at least $20,000,000 entered into by the Borrower in such
Quarterly Period;

	 	(4)	 	a statement of all transactions, including without limitation
in respect of any Subordinated Debt, and transfers between the
Borrower and each of its Affiliates or Shareholders (or Affiliates
thereof) during such Quarterly Period with a value in excess of
$100,000 or the equivalent thereof in other currencies at then
current rates of exchange or a statement that there were no such
transactions; and
	 
	 	(5)	 	a Compliance Certificate, signed by an Authorized Signatory
of the Borrower, certifying that the Borrower was in compliance with
the financial covenants contained in Section 5.10 as of the end of
such Quarterly Period or, as the case may be, detailing any
non-compliance.

	(b)	 	As soon as available but, in any event, within 120 days after the end of
each Financial Year, the Borrower shall furnish to EDC:

	 	(1)	 	two copies of the Borrower’s complete Financial Statements
for such Financial Year, together with a report of the Auditors
thereon, as prepared in Dollars in accordance with Generally
Accepted Accounting Principles in a form satisfactory to EDC;
	 
	 	(2)	 	two copies of the Financial Statements for such Financial
Year prepared in Lei in accordance with RAS, with the censors report
thereon, in a form satisfactory to EDC;
	 
	 	(3)	 	a management letter from the Auditors commenting on, among
other matters, the adequacy of the Borrower’s financial control
procedures and accounting systems;
	 
	 	(4)	 	a Compliance Certificate, signed by the Auditors, certifying
that the Borrower was in compliance with the financial covenants
contained in Section 5.10 as of the end of such Financial Year or,
as the case may be, detailing any non-compliance; and
	 
	 	(5)	 	a report, in form and scope satisfactory to EDC, on
environmental, health and safety issues arising in relation to the
Borrower and the Project during such Financial Year.

	(c)	 	Within 30 days after the effective date of any new or renewed liability,
property damage, business interruption, contractor’s all-risks and public
liability insurance policy, the Borrower shall furnish to EDC an original
certificate from the Borrower’s insurer or insurance broker indicating the
properties insured, amounts and risks covered, names of the loss payees
(including EDC), beneficiaries and assignees, name of the insurer and any
special features of the new or renewed insurance policy.

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	(d)	 	Within 9 days after the end of each calendar month, the Borrower shall
furnish to EDC monthly management accounts of the Borrower in the form to
be agreed between the Borrower and EDC, which shall include Financial
Statements and information regarding number of subscribers to the services
provided by the Borrower’s Network minutes of use thereof and average
revenue per user.
	 
	(e)	 	The Borrower shall provide to EDC at least 30 days prior to incurring any
Subordinated Debt notice of such Subordinated Debt, identifying the person
providing such Subordinated Debt, the principal amount of such
Subordinated Debt and the principal terms thereof.
	 
	(f)	 	The Borrower shall promptly inform EDC of:

	 	(1)	 	any proposed material change in the nature or scope of the
Project or the business or operations of the Borrower;
	 
	 	(2)	 	any claim made by the Borrower under any insurance policy in
an amount in excess of $1 million;
	 
	 	(3)	 	any event or condition (including, without limitation, any
pending or threatened litigation, arbitration or administrative
proceeding and any damage to or destruction of Project facilities)
which might have a material adverse effect on the Project, the
Borrower’s business, operations or financial condition or the
ability of the Borrower to perform any of its obligations under any
Financing Agreement or Project Agreement; and
	 
	 	(4)	 	any communication by or with the Borrower or any Controlling
Shareholder with or from the Ministry that is material in respect of
each License, UMTS License Compliance and other compliance with the
conditions of each License.

	(g)	 	Within 15 days of receipt of any communication from the Ministry that is
material and adverse in respect of UMTS License Compliance, the Borrower
shall provide to EDC a detailed compliance remediation plan for the
resolution of any compliance related issues identified in such
communication, which plans shall include, inter alia, an identification of
the UMTS License Compliance deficiencies, and a description of actions
required to remedy the same, including detailed geographical and financial
breakdowns; such compliance remediation plans shall be updated on a
monthly basis within 15 days after the end of each month.
	 
	(h)	 	Immediately upon receipt by the Borrower of a certificate or other
communication from the Ministry evidencing UMTS License Compliance, the
Borrower shall furnish a copy of such certificate or communication to EDC.
	 
	(i)	 	Immediately upon the occurrence of any Event of Default or Potential
Event of Default, the Borrower shall give EDC notice thereof specifying
the nature of such Event of Default or Potential Event of Default and any
steps the Borrower is taking to remedy the same.

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	(j)	 	Immediately upon the occurrence of any incident or accident relating to
the Borrower or the Project likely to have a material adverse effect on
the environment, health or safety, the Borrower shall give EDC notice
thereof specifying the nature of such incident or accident and any steps
the Borrower is taking to remedy the same. Without limiting the
generality of the foregoing, an incident or accident is likely to have a
material adverse effect on the environment, health or safety if any
applicable law requires notification of such incident or accident to any
governmental authority, such incident or accident involves fatality or
multiple serious injuries requiring hospitalization or such incident or
accident has become public knowledge whether through media coverage or
otherwise.
	 
	(k)	 	The Borrower shall furnish to EDC with respect to each Financial Year the
Borrower’s proposed one-year budget including capital expenditure plan
within 30 days of its approval by the board of directors of the Borrower
and in any event within 30 days after the end of each Financial Year.
	 
	(l)	 	The Borrower shall,

	 	(1)	 	within 90 days after the end of each Financial Year, provide
to EDC a certificate of an Authorised Signatory confirming (A) the
amount of Distributions which the Borrower was permitted to make in
accordance with Romanian law in respect of such Financial Year and
(B) the Deferred Distribution Amount applicable in respect of the
next Financial Year; and
	 
	 	(2)	 	within 9 days of each Quarter Date, provide to EDC a
statement confirming the calculation of the amount calculated
pursuant to Section 6.01(a)(3)(C) in respect of the Distribution
Test Period ending on such Quarter Date.

	(m)	 	As soon as available but, in any event, within 9 days of each Quarter
Date, the Borrower shall provide to EDC a statement of its Cash and Cash
Equivalents and calculation of Excess Cash Flow and Available Cash Balance
as at such Quarter Date and the proposed distribution thereof in
accordance with the terms of this Agreement.
	 
	(n)	 	The Borrower shall furnish promptly to EDC such other information as EDC
may from time to time reasonably request. The Borrower shall permit
representatives of EDC (including, without limitation, any consultants
engaged by EDC) to visit the head office of the Borrower during normal
business hours, with prior notice, or any of the other premises where the
business of the Borrower is conducted or where the Borrower’s Network is
located and to have access to the books of account and records of the
Borrower.

Section 5.14 Procurement

The Borrower shall use procurement methods which ensure a sound selection of
goods and services at fair market value and which ensure that the Borrower is
making its capital investments in a cost effective manner.

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Section 5.15 License Compliance

	(a)	 	The Borrower shall be at all times in full compliance with all terms and
conditions of the GSM License.
	 
	(b)	 	The Borrower shall, at all times after obtaining the UMTS License,
achieve and maintain UMTS License Compliance.

Section 5.16 Repayment of Existing Loans Indebtedness; Conditional Discharges

The Borrower shall take all steps and actions to ensure that the Existing Loans
Indebtedness is repaid on the date of first Disbursement of the Tranche I EDC
Loan hereunder, and that simultaneously with such repayment, the Existing Loans
Repayment Confirmations are delivered to the Conditional Discharge Escrow Agent
and the Conditional Discharge is released from escrow.

ARTICLE VI —  NEGATIVE COVENANTS

Unless EDC otherwise agrees in writing:

Section 6.01 Distributions

	(a)	 	Except as expressly provided herein, the Borrower shall not pay any
dividend, or make any distribution on its share capital, or purchase,
redeem or otherwise acquire any shares of capital of the Borrower or any
option over the same, or make any payment of principal or interest on any
Permitted Quasi Equity (any such action referred to as a “Distribution”).
Notwithstanding the foregoing, the Borrower may make a Distribution (other
than a principal payment on Permitted Quasi Equity) but only provided
that:

	 	(1)	 	at the time of making such Distribution no Event of Default
or Potential Event of Default has occurred and is continuing, and no
Event of Default or Potential Event of Default shall occur
immediately following such Distribution;
	 
	 	(2)	 	on the date of such Distribution and immediately thereafter
the Borrower shall be in full compliance with the covenants set out
in Section 5.10(a), provided that notwithstanding the proviso to
Section 5.10(a), for purposes of this Section 6.01(a)(2) Curative
Equity shall not be taken into account in determining compliance
with Section 5.10(a);
	 
	 	(3)	 	Distributions shall not, at any time, exceed in aggregate the
sum of:

	 	(A)	 	the lesser of

		
	 	(x) Excess Cash Flow (calculated by reference to the four
consecutive and complete Quarterly Periods ending on the last
day of the Quarterly Period immediately preceding the date on
which the Distribution is to take place, (such period is
referred to as the “Distribution Test Period”)), less

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	 	(i)	 	the aggregate amount of all mandatory
prepayments paid or payable pursuant to Section 3.09(d)
on the four (4)Excess Cash Mandatory Prepayment Dates
occurring on or prior to the date on which the
Distribution is to take place, and
	 
	 	(ii)	 	the aggregate amount of Distributions
out of Excess Cash Flow made within the 3 consecutive
and complete Quarterly Periods ending on the last day of
the Quarterly Period immediately preceding the date on
which the Distribution is to take place; or

		
	 	(y) the Available Cash Balance, calculated at the end of such
Quarterly Period, less the aggregate amount of all mandatory
prepayments payable pursuant to Section 3.09(d) out of such
Available Cash Balance;

	 	(B)	 	the amount of net proceeds received by the
Borrower in the Distribution Test Period from the issuance of
Permitted High Yield Back to Back Debt less (i) the amount of
the mandatory prepayments payable or paid to the Senior
Lenders in respect of such net proceeds under Section 3.09(a)
and (ii) the aggregate amount of Distributions made in respect
of such net proceeds during the Distribution Test Period; and
	 
	 	(C)	 	in respect of each Quarterly Period of each
Financial Year, from and after the Quarterly Period ending on
31 March 2003, the positive amount, if any, by which

	 	(i)	 	the Deferred Distribution Amount
calculated by reference to the end of the previous
Financial Year,

		
	 	     exceeds

	 	(ii)	 	the aggregate amount, if any, paid as
Distributions under this Section 6.01(a)(3)(C) in
respect of such Deferred Distribution Amount;

		
	 	provided that

		
	 	(x) Distributions made in respect of any Distribution Test
Period shall be deemed to be made (1) first, out of the
applicable Deferred Distribution Amount, if any, (2) second,
out of the proceeds of Permitted High Yield Back to Back Debt
pursuant to Section 6.01(a)(3)(B), if any, and (3) third, out
of Excess Cash Flow pursuant to Section 6.01(a)(3)(A), if
any, and

		
	 	(y) the amount calculated pursuant to Section 6.01(a)(3)(C)
in respect of any Quarterly Period shall be included in
Distributions only to the extent the Borrower is in
compliance with Romanian law requirements with respect to
permitted Distributions in the Financial Year in which such
Quarterly Period occurs.

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	 	(4)	 	Distributions shall occur not earlier than fifteen (15) days
after the end of each Quarterly Period and not later than thirty
(30) days after the end of each Quarterly Period, provided that

	 	(A)	 	the first Distribution after the date hereof may,
at the option of the Borrower take place (subject to the other
terms of this Section 6.01) either on or after 15 September
2002 but prior to 30 September 2002 or on or after 15 October
2002 but prior to 30 October 2002, and
	 
	 	(B)	 	the second Distribution after the date hereof may
at the option of the Borrower take place (subject to the other
terms of this Section 6.01) on or after 15 December 2002 but
prior to 30 December 2002 or on or after 15 January 2003 but
prior to 30 January 2003;

	 	(5)	 	on the date of such Distribution and immediately thereafter
the USD Equivalent Amount of the Cash and Cash Equivalents less the
USD Equivalent Amount of the amounts paid or payable to the Senior
Lenders on such date in connection with the Senior Loans, if any,
shall be greater than or equal to the Minimum Cash Balance;
	 
	 	(6)	 	neither of the following events has occurred on or prior to
the date of such Distribution:

	 	(A)	 	the creditors of any Operating Shareholder have
exercised any pledge or other security interest they may have
in or over any of the share capital, cash or accounts
receivable of such Operating Shareholder, or
	 
	 	(B)	 	any Operating Shareholder has ceased to
constitute a going concern or an Event of Default under
Section 7.01(f) has occurred and is continuing with respect to
any Operating Shareholder provided that for purposes of this
Section 6.01(6)(B), Section 7.01(f) hereof shall be read to
include all Operating Shareholders irrespective of whether
they are also Shareholders;

	 	(7)	 	no Distributions may occur in a Quarterly Period in which (a)
the amount of Senior Loans to be prepaid under Section 3.09(d)(i) is
less than the amount identified in Section 3.09(d)(i)(A) or (b) the
amount of Senior Loans to be prepaid under Section 3.09(d)(ii) is
less than the amount identified in Section 3.09(d)(ii)(A).

	(b)	 	The Borrower shall not make any payments to any Operating Shareholder, or
any Affiliate of any Operating Shareholder, other than (i) Distributions
permitted under Section 6.01(a), and (ii) payments made to an Operating
Shareholder in the ordinary course of business, on ordinary commercial
terms, on the basis of arm’s length arrangements and involving an ordinary
commercial price, whether under the Technical Services Agreements (as
defined in the Share Retention and Subordination Deed) or otherwise,
provided such payments do not exceed in the aggregate for all such persons
$3,500,000 in any Financial Year.

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Section 6.02   Financial Debt

	(a)	 	The Borrower shall not incur, assume or permit to exist any Financial
Debt except:

	 	(1)	 	prior to the Existing Loans Repayment Date, the Existing
Loans;
	 
	 	(2)	 	the Senior Loans;
	 
	 	(3)	 	any Working Capital Facilities (but only in an aggregate
available amount not to exceed $20,000,000) (or the equivalent
thereof in other currencies at then current rates of exchange);
	 
	 	(4)	 	subject to compliance with Section 3.09(f) and Section
5.07(h), Permitted High Yield Back to Back Debt;
	 
	 	(5)	 	Financial Debt incurred under guarantees of loans of
employees of the Borrower, which guarantees are issued pursuant to
and in accordance with an employee loan guarantee plan, which plan
(i) shall not permit the aggregate obligations of the Borrower under
guarantees issued pursuant to such plan to exceed $2,000,000 and
(ii) the incurrence of such Financial Debt shall otherwise be on
terms satisfactory to EDC, acting reasonably;
	 
	 	(6)	 	any interest rate or currency hedging or similar derivative
transaction permitted under Section 6.04;
	 
	 	(7)	 	any indebtedness in connection with a conditional sales
contract, hire purchase agreement or other instrument pursuant to
which financing of the purchase price of equipment or another
tangible asset is provided by a supplier to the Borrower, provided
that such financing has a maturity of no longer than 180 days; and
	 
	 	(8)	 	any indebtedness to the Government of Romania or any
governmental authority arising in connection with deferred payment
arrangements in respect of the acquisition of the UMTS License.

	(b)	 	The Borrower shall not enter into any agreement or arrangement to
guarantee or, in any way or under any condition, to become obligated for
all or any part of any financial or other obligation of another person,
except in the ordinary course of business and only up to an aggregate
amount of $2,000,000.
	 
	(c)	 	The Borrower shall not pay any principal, interest or any other amount in
respect of Permitted High Yield Back to Back Debt, other than interest
payments permitted pursuant to Section 2.01(b)(iv) of the Share Retention
and Subordination Deed provided that:

	 	(1)	 	at the time of such payment, no Event of Default or Potential
Event of Default has occurred and is continuing, and no Event of
Default or Potential Event of Default shall occur immediately
following such payment; and

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	 	(2)	 	at the time of such payment and immediately thereafter the
Borrower shall be in full compliance with the covenants set out in
Section 5.10(a).

Section 6.03   Liens

The Borrower shall not create or permit to exist any Lien on any property,
revenues or other assets, present or future, of the Borrower, except:

	 	(1)	 	at any time prior to the Existing Security Discharge Date,
the Existing Security;
	 
	 	(2)	 	the Security;
	 
	 	(3)	 	any tax or other non-consensual Lien arising by operation of
law or other statutory Lien arising in the ordinary course of
business, provided that such Lien (other than a Lien for a sum which
is not yet delinquent) is discharged within 60 days after the date
it is created or, if the validity or amount of such Lien or the sum
secured by such Lien is being contested in good faith and by proper
proceedings and adequate reserves have been set aside for the
payment of such sum, within 60 days after final adjudication;
	 
	 	(4)	 	any Lien on the Borrower Accounts and offshore roaming
revenues to the extent required to secure the Working Capital
Facilities; and
	 
	 	(5)	 	rights of any Hedge Provider providing hedging facilities
pursuant to a Hedging Agreement in relation to the EDC Loan, the
EBRD Loan or the NIB Loan, to share in the Security on a pari passu
basis with the Senior Lenders, such sharing to be on terms and
conditions otherwise acceptable to EDC, provided that such Hedge
Provider shall become a party to the Security Sharing and
Intercreditor Agreement and the Security Documents provided that the
amount of such proceeds cannot exceed in the aggregate for all such
Hedge Providers and hedging facilities $30 million.

	 	 	provided, however, that the aggregate of the debt secured by the Liens
securing indebtedness to Working Capital Lenders shall only be
permissible to the extent necessary to secure on a first priority basis
(subject to the Existing Security) such debt up to an amount not
exceeding in aggregate $20 million and provided further that such Working
Capital Lenders shall have no further entitlement to security, including
under the Security, and that the Working Capital Lenders become parties
to the Security Sharing and Intercreditor Agreement on terms satisfactory
to the Senior Lenders.

Section 6.04   Derivative Transactions

The Borrower shall not enter into any interest rate or currency swap, interest
rate cap or collar, forward rate agreement or other interest rate, currency or
commodity hedge or similar derivative transaction, other than any interest rate
or currency hedging against interest rate or currency risks directly arising
out of the Senior Loans or in connection with vendor invoices of the Borrower
in the ordinary course of business on terms consistent with the Hedging Plan
and with counterparts which have a Standard & Poor’s Rating Services credit
rating of their long-term unsecured debt

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of at least “A”, or is otherwise of credit quality acceptable to EDC. The
Borrower shall promptly inform EDC of any hedging transaction entered into with
respect to the Senior Loans when entered into and shall promptly furnish to EDC
a copy of the Hedging Agreement related thereto.

Section 6.05   Arm’s Length Transactions

The Borrower shall not enter into any transaction with any person except in the
ordinary course of business, on ordinary commercial terms and on the basis of
arm’s-length arrangements, or enter into any transaction whereby the Borrower
would pay more than the ordinary commercial price for any purchase or would
receive less than the full ex-works commercial price (subject to normal trade
discounts) for its products or services.

Section 6.06   Profit-sharing and Management Arrangements

	(a)	 	The Borrower shall not enter into any partnership, profit-sharing or
royalty agreement or other similar arrangement whereby the Borrower’s
income or profits are, or might be, shared with any other person, other
than Shareholders under conditions expressly set forth in the Project
Agreements or Financing Agreements, and other than (1) any stock option
plan of the Borrower, which (i) only permits the purchase of shares or
exercise of options in conjunction with or after a Public Offering or a
Public Secondary Sale of the Borrower, (ii) caps the number of shares to
be issued under such plan at no greater than 5% of the total issued and
outstanding share capital of the Borrower at the relevant time, (iii)
applies only to employees of the Borrower at specified seniority levels
and specified consultants of the Borrower and (iv) is otherwise acceptable
to EDC, or (2) any compensation arrangement applicable to persons
identified in paragraph (1)(iii) above, and acceptable to EDC that has, in
substance, the same effect and restrictions as to value as a stock option
plan identified in paragraph (1) above.
	 
	(b)	 	The Borrower shall not enter into any management contract or similar
arrangement whereby its business or operations are managed by any other
person, other than with Shareholders under the conditions detailed in the
Project Agreements.

Section 6.07   Investments

	 	(1)	 	The Borrower shall not form or have any Subsidiary.
	 
	 	(2)	 	The Borrower shall not make or permit to exist loans or
advances to, or deposits (other than bank deposits in Dollars, Euro
or Lei with maturity of less than 90 days made in the ordinary
course of business with reputable banks) with, other persons or
investments in any person or enterprise; provided, however, that the
Borrower may invest cash balances in the Borrower Accounts in excess
of the Minimum Cash Balance in Permitted Treasury Investments.
	 
	 	(3)	 	The Borrower shall ensure that at all times the
representation and warranty contained in Section 2.02(b) is true and
correct.

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Section 6.08   Project Agreements

The Borrower shall not terminate, amend or grant any waiver in respect of any
material provision of any Project Agreement to which it is a party or consent
to any assignment of any Project Agreement by any other party thereto.

Section 6.09   Changes in Business and Capital

	(a)	 	The Borrower shall not make changes, or permit changes to be made, to the
nature of its present and presently contemplated business or operations or
change the nature or scope of the Project. The Borrower shall not carry
out any business or activity other than businesses or activities
substantially related to the Project.
	 
	(b)	 	The Borrower shall not make changes, or permit changes to be made, to its
capital other than (i) pursuant to Distributions permitted under Section
6.01, (ii) contributions of equity or Permitted Quasi Equity and (iii)
share repurchases permitted under Section 4.04 of the Share Retention and
Subordination Deed, subject in the case of (iii) to Section 4.05 of the
Share Retention and Subordination Deed and Section 4.4 of the Security
Agreement Over Shares.

Section 6.10   Prepayment of Long-term Debt

The Borrower shall not (whether voluntarily or involuntarily) make any
prepayment, repurchase or early redemption of any Long-term Debt or make any
repayment of any Long-term Debt pursuant to any provision of any agreement or
note which provides directly or indirectly for acceleration of repayment in
time or amount, unless in any such case it shall contemporaneously make a
proportionate prepayment of the principal amount then outstanding of the EDC
Loan in accordance with the provisions of Section 3.09 (except that there shall
be no minimum amount or notice period for such prepayment).

Section 6.11   Sale of Assets; Merger

	(a)	 	The Borrower shall not sell, transfer, lease or otherwise dispose of all
or a substantial part (as determined by EDC in its reasonable discretion)
of its assets (whether in a single transaction or in a series of
transactions, related or otherwise).
	 
	(b)	 	The Borrower shall not undertake or permit any merger, consolidation or
reorganization.

Section 6.12   Shareholders Register

The Borrower shall not record any entry in the shareholders register of the
Borrower of any kind whatsoever including, without limitation, in respect of
any security interest in any of the share capital of the Borrower, transfer of
shares or issuance of shares (a) without providing to EDC at least five (5)
Business Days prior notice in respect of such entry and within five (5)
Business Days after such entry is made a copy of the shareholders register of
the Borrower reflecting such entry, and (b) without certifying to EDC in such
notice that after such entry is made, 100% of the share capital of the
Borrower, subject to Section 4.05 of the Share Retention and Subordination

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Deed and Section 4.4 of the Security Agreement Over Shares, shall be subject to
the Security Agreement Over Shares.

Section 6.13   Public Offering or Public Secondary Sale

No shares in the share capital of the Borrower shall be sold in a Public
Offering or Public Secondary Sale unless:

	(a)	 	if no prepayment is made under Section 3.09(b), more than 75% of the
share capital of the Borrower is subject to the Security after giving
effect to such Public Offering or Public Secondary Sale; and
	 
	(b)	 	if a prepayment as required under Section 3.09(b) is made, such
percentage of shares in the capital of the Borrower as is required under
Section 3.09(b) is subject to the Security.

ARTICLE VII — EVENTS OF DEFAULT

Section 7.01   Events of Default

Each of the following events and occurrences shall constitute an Event of
Default under this Agreement:

	(a)	 	Payments. The Borrower fails to pay when due any principal of or
interest on, the EDC Loan as required by this Agreement.
	 
	(b)	 	Covenants. The Borrower or any other party (other than the Senior
Lenders, or the Agent) repudiates or fails to perform in a timely manner
any of its obligations under any Financing Agreement (other than the
Security Sharing and Intercreditor Agreement), such repudiation or such
failure to perform any such obligation is not referred to elsewhere in
this Section 7.01 and, if capable of remedy, such repudiation or such
failure to perform has continued for (1) a period of 30 days in respect of
a breach of Section 5.10(a) of any of the Senior Loan Agreements, or (2) a
period of 15 days in respect of all other breaches, in each case after the
earlier of the date upon which (i) the Borrower has become aware of the
same or (ii) notice thereof has been given to the Borrower by EDC.
	 
	(c)	 	Project Agreements. Any party (other than the Senior Lenders) fails to
perform in a timely manner any of its obligations under any Project
Agreement, the failure to perform such obligation is not referred to
elsewhere in this Section 7.01 and, if capable of remedy, such failure to
perform has continued for a period of 30 days after the earlier of the
date upon which (i) the Borrower has become aware of the same, and (ii)
notice thereof has been given to the Borrower by EDC, and, in either case,
such failure to perform has a material adverse effect on the ability of
the Borrower to perform any of its obligations under this Agreement.
	 
	(d)	 	Representations. Any representation or warranty made or confirmed by the
Borrower or any Shareholders or Operating Shareholders in any Financing
Agreement or Project Agreement was false or misleading when made or
confirmed.

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	(e)	 	Nationalisation. Any government or governmental authority condemns,
nationalises, seizes or otherwise expropriates all or any substantial or
significant part of the property or other assets of the Borrower or of its
share capital, or assumes custody or control of such property or other
assets or of the business or operations of the Borrower or of its share
capital, or acquires majority ownership of the Borrower, or takes any
action for the dissolution or disestablishment of the Borrower or any
action that would prevent the Borrower or its officers from carrying on
the Borrower’s business or operations or a substantial part thereof.
	 
	(f)	 	Bankruptcy. A decree or order by a court is entered against (i) the
Borrower, (ii) ClearWave, or (iii) any Operating Shareholder which is a
Shareholder or which is a holder of Permitted High Yield Back to Back Debt
(any such party referred to in Subparagraph (i), (ii) or (iii), a
“Relevant Person”) adjudging any Relevant Person bankrupt or insolvent or
ordering the winding up or liquidation of its affairs; or a petition is
filed seeking reorganization, administration, arrangement, adjustment,
composition or liquidation of or in respect of any Relevant Person under
any applicable law (unless, if such petition is filed by a party other
than the Borrower or any Operating Shareholder, is not consented to by the
Borrower or any Operating Shareholder, and is, in the opinion of EDC
acting reasonably, frivolous or vexatious, such petition is vacated or
discharged within 90 days (in case of a petition filed in Romania) or 30
days (in case of a petition filed in any jurisdiction other than Romania)
of such filing); or a receiver, administrator, liquidator, assignee,
trustee, sequestrator, secured creditor or other similar official is
appointed over or in respect of any Relevant Person or any substantial
part of its property or assets or any Relevant Person institutes
proceedings to be adjudicated bankrupt or insolvent, or consents to the
institution of bankruptcy or insolvency proceedings against it, or files a
petition or answer or consent seeking reorganization, administration,
relief or liquidation under any applicable law, or consents to the filing
of any such petition or to the appointment of a receiver, administrator,
liquidator, assignee, trustee, sequestrator, secured creditor or other
similar official of any Relevant Person or of any substantial part of its
property, or makes an assignment for the benefit of creditors, or admits
in writing its inability to pay its debts generally as they become due; or
any other event occurs which under any applicable law would have an effect
analogous to any of the events listed in this Section.
	 
	(g)	 	Financial Debt. Any Financial Debt of the Borrower (other than the EDC
Loan) which exceeds $1,000,000 or any Financial Debt of any holder of
Permitted High Yield Back to Back Debt in excess of $50,000,000 is not
paid when due; or a default of any nature occurs under any agreement
pursuant to which there is outstanding any such Financial Debt such
default continues beyond any original applicable period of grace and the
holder of such Financial Debt is entitled to accelerate such Financial
Debt; or any such Financial Debt becomes prematurely due and payable or is
placed on demand.
	 
	(h)	 	Adverse Change. Any circumstance or event occurs which, in the
reasonable opinion of EDC, is likely to have a material adverse effect on
the Project, the business, operations or financial condition of the
Borrower, or the ability of the Borrower to perform any of its obligations
under any Financing Agreement.

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	(i)	 	Termination or Adverse Amendment of the Licenses. Either License is
terminated or amended by the Ministry in a manner which, in EDC’s sole
discretion, has a material adverse effect on the ability of the Borrower
to perform any of its obligations under this Agreement, or, if the
Ministry gives notice of its intention to so terminate or amend either
License, the earlier to occur of (i) such termination or amendment or (ii)
the date which is 90 days from the date on which the Ministry gives notice
of such intention.
	 
	(j)	 	Interconnection Agreements. The Romtelecom Interconnection Agreement or
the Orange Romania Interconnection Agreement terminates or expires and is
not renewed, or is amended or renewed in a manner that has a material
adverse effect on the ability of the Borrower to perform any of its
obligations under this Agreement, unless prior to such termination or
non-renewal alternative arrangements in respect of the matters to which
the Romtelecom Interconnection Agreement or the Orange Romania
Interconnection Agreement, as applicable, relates have been made which are
satisfactory to EDC acting reasonably.
	 
	(k)	 	Judgement. A final judgement or order for the payment of money in excess
of $5,000,000 (or its equivalent in other currencies at then current rates
of exchange) is rendered against the Borrower or its properties and such
judgement or order shall continue unsatisfied or unstayed for a period of
15 consecutive days.
	 
	(l)	 	Security Agreement Over Shares. Subject to Section 4.05 of the Share
Retention and Subordination Deed and Section 4.4 of the Security Agreement
Over Shares, at any time the following condition fails to be met, and such
failure has continued for a period of 30 days after notice thereof has
been given to the Borrower by EDC: 100% of the shares in the capital of
the Borrower shall remain effectively subject to the security interest in
favour of the Senior Lenders pursuant to the Security Agreement Over
Shares.
	 
	(m)	 	Illegality. At any time it is or becomes unlawful for the Borrower to
perform or comply with any or all of its obligations under any of the
Project Agreements or any of the obligations of the Borrower under any of
the Project Agreements are not or cease to be legal, valid, binding and
enforceable.
	 
	(n)	 	Change in Control. At any time ClearWave’s Majority Shareholder or any
Controlling Shareholder is in breach of Section 4.01, 4.02 or 4.03 of the
Share Retention and Subordination Deed.

Section 7.02   Acceleration and Cancellation

Upon the occurrence of an Event of Default, at any time thereafter, EDC may by
notice to the Borrower:

	(a)	 	declare all or any portion of the principal of and accrued interest on,
the EDC Loan (together with any other amounts accrued or payable under
this Agreement the “Declared Amount”) to be immediately due and payable
whereupon the same shall become so due and payable, or declare all or any
part of the Declared Amount to be due and payable on demand by EDC without
any presentment, demand or protest of any kind, all of which are hereby
expressly waived by the Borrower; and/or

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	(b)	 	declare that any undrawn portion of the EDC Loan shall be cancelled,
whereupon the same shall be cancelled.

Section 7.03   Disbursements Due on Demand

If, pursuant to Section 7.02 EDC declares all or any part of the Declared
Amount to be due and payable on demand of EDC then, and at any time thereafter,
EDC may by notice to the Borrower:

	(a)	 	require repayment of all or such part of the Declared Amount on such date
as it may specify in such notice (whereupon the same shall become due and
payable on the date specified together with accrued interest thereon and
any other sums then owed by the Borrower hereunder) or withdraw its
declaration with effect from such date as it may specify; and/or
	 
	(b)	 	select as the duration of any Interest Period which begins whilst such
declaration remains in effect a period of six months or less.

Section 7.04   Automatic Acceleration

If the Borrower becomes voluntarily or involuntarily dissolved or bankrupt
(however such bankruptcy may be evidenced), the principal of, and all accrued
interest on, the EDC Loan (together with any other amounts accrued or payable
under this Agreement) shall thereupon become immediately due and payable
(anything in this Agreement to the contrary notwithstanding) without any
presentment, demand, protest or notice of any kind, all of which are hereby
expressly waived by the Borrower.

ARTICLE VIII — MISCELLANEOUS

Section 8.01   Term of Agreement

This Agreement shall continue in force until the date that the obligation of
EDC to make Disbursements hereunder has terminated in accordance with the terms
hereof or, if later, until all moneys payable hereunder have been fully paid in
accordance with the provisions hereof; provided that the indemnities and
warranties of the Borrower shall survive repayment of the EDC Loan and
termination of this Agreement.

Section 8.02   Entire Agreement; Amendment and Waiver

This Agreement and the documents referred to herein constitute the entire
obligation of the parties hereto with respect to the subject matter hereof and
shall supersede any prior expressions of intent or understandings with respect
to this transaction. Any amendment to, waiver by EDC of any of the terms or
conditions of or consent given by EDC under, this Agreement (including, without
limitation, this Section 8.02) shall be in writing, signed by EDC and, in the
case of an amendment, by the Borrower. In the event that EDC waives a
condition to any Disbursement, the Borrower shall, by receiving the proceeds of
such Disbursement, be deemed to have agreed to all of the terms and conditions
of such waiver.

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Section 8.03   Notices

	(a)	 	Communications in writing. Any communication to be made under or in
connection with this Agreement shall be made in writing and, unless
otherwise stated, may be made by fax, letter or, subject to Section
8.03(d), electronic mail.
	 
	(b)	 	Addresses. The address, fax number or e-mail address (and the department
or officer, if any, for whose attention the communication is to be made)
of each party for any communication or document to be made or delivered
under or in connection with this Agreement is:
	 

	 	 	For the Borrower:

MobiFon S.A.

City Business Centre

3 Nerva Traian Street

Complex Ml01, Sector 3

Bucharest, Romania

	 	 	Attention:	 	Chief Financial Officer
	 	 	Fax:	 	(40) (21) 302-1455
	 	 	Email:	 	To be notified by the Borrower

	 	 	For EDC:

Export Development Canada

151 O’Connor Street

Ottawa, Canada K1A 1K3

	 	 	Attention:	 	Loans Operation Team
	 	 	Fax:	 	(613) 598-2514
	 	 	Email:	 	To be notified by EDC

	 	 	or any substitute address, fax number or e-mail address or department or
officer as the Borrower may notify to EDC (or EDC may notify to the
Borrower if a change is made by EDC) by not less than five Business Days’
notice.
	 
	(c)	 	Delivery. Any communication or document made or delivered by one person
to another under or in connection with this Agreement will only be
effective:

	 	(i)	 	if by way of fax, when received in legible form;
or
	 
	 	(ii)	 	if by way of letter, when it has been left at the
relevant address or five Business Days after being deposited
in the post postage prepaid in an envelope addressed to it at
that address; or

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	 	(iii)	 	if by way of e-mail, when a delivery receipt is
received by the sender confirming that the e-mail has been
delivered to the recipient’s correct e-mail address;

	 	 	and, if a particular department or officer is specified as part of its
address details provided under Section 8.03(b), if addressed to that
department or officer.
	 
	 	 	Any notice delivered in accordance with this Section 8.03 after 4:00 p.m.
on a Business Day, or on a day which is not a Business Day, will be
deemed to have been delivered at 10:00 a.m. on the next Business Day.
	 
	(d)	 	Limitation on use of electronic mail. Electronic mail may only be used
for communications to be made under or in connection with the following
Sections of this Agreement:

	 	(i)	 	Section 5.13(a)(1), (2), (3) and (4);
	 
	 	(ii)	 	Section 5.13(d);
	 
	 	(iii)	 	Section 5.13(e);
	 
	 	(iv)	 	Section 5.13(k);
	 
	 	(v)	 	Section 5.13(l)(2); and
	 
	 	(vi)	 	Section 5.13(m).

	 	 	If the Borrower supplies EDC with Financial Statements pursuant to
Section 5.13 by e-mail, the Borrower shall supply a hard copy of those
Financial Statements within 5 Business Days to EDC if EDC notifies the
Borrower that it requires a hard copy of those Financial Statements.
	 
	(e)	 	Use of websites.

	 	(1)	 	Except as provided below, the Borrower may deliver any
information identified in Section 8.03(d) to EDC by posting it on to
an electronic website if:

	 	(i)	 	EDC and the Borrower agree;
	 
	 	(ii)	 	EDC designates an electronic website for this
purpose;
	 
	 	(iii)	 	both the Borrower and EDC are aware of the
address of and any relevant password specifications for the
website; and
	 
	 	(iv)	 	the information posted is in a format agreed
between the Borrower and EDC.

	 	(2)	 	Notwithstanding the above, the Borrower must supply to EDC in
paper form a copy of any information posted on the website:

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	 	(i)	 	if so requested to do so by EDC; and
	 
	 	(ii)	 	if so required by a governmental requirement.

	 	In both cases within ten (10) Business Days of receipt of the
request.

	 	(3)	 	The Borrower must promptly upon becoming aware of its
occurrence, notify EDC if:

	 	(i)	 	the website cannot be accessed;
	 
	 	(ii)	 	the website or any information on the website is
infected by any electronic virus or similar software;
	 
	 	(iii)	 	the relevant password specification for the
website is changed; or
	 
	 	(iv)	 	any information is posted on the website or
amended after being posted.

	 	 	In the circumstances in paragraphs (i) or (ii) above occur, the Borrower
must supply any information required under this Agreement in paper form.

Section 8.04   English Language

All documents to be furnished or communications to be given or made under this
Agreement shall be in the English language or, if in another language, shall be
accompanied by a translation into English certified by the Borrower, which
translation shall be the governing version between the Borrower and EDC.

Section 8.05   Financial Calculations

All financial calculations to be made under, or for the purposes of this
Agreement shall be made in accordance with Generally Accepted Accounting
Principles and, except as otherwise required to conform to the definitions
contained in Article I or any other provisions of this Agreement, shall be made
using the then most recently issued quarterly Financial Statements which the
Borrower is required to furnish to EDC from time to time under Section 5.13(a);
provided, however, that:

	 	(1)	 	if the relevant quarterly Financial Statements should be in
respect of the last quarter of a Financial Year then, at EDC’s
option, such calculations may instead be made from the audited
Financial Statements for the relevant Financial Year; and
	 
	 	(2)	 	if there should occur any material adverse change in the
financial condition of the Borrower after the end of the period
covered by the relevant Financial Statements, then such material
adverse change shall also be taken into account in calculating the
relevant figures.

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Section 8.06   Rights, Remedies and Waivers

	(a)	 	The rights and remedies of EDC in relation to any misrepresentations or
breach of warranty on the part of the Borrower shall not be prejudiced by
any investigation by or on behalf of EDC into the affairs of the Borrower,
by the execution or the performance of this Agreement or by any other act
or thing which may be done by or on behalf of EDC in connection with this
Agreement and which might, apart from this Section, prejudice such rights
or remedies.
	 
	(b)	 	No course of dealing or waiver by EDC in connection with any condition of
disbursement under this Agreement shall impair any right, power or remedy
of EDC with respect to any other condition of disbursement or be construed
to be a waiver thereof.
	 
	(c)	 	No action of EDC in respect of any Disbursement shall affect or impair
any right, power or remedy of EDC in respect of any other Disbursement.
Without limiting the foregoing, the right of EDC to require compliance
with any condition under this Agreement which may be waived by EDC in
respect of any Disbursement is, unless otherwise notified to the Borrower
by EDC, expressly preserved for the purposes of any subsequent
Disbursement.
	 
	(d)	 	No course of dealing and no delay in exercising, or omission to exercise,
any right, power or remedy accruing to EDC upon any default under this
Agreement or any other agreement shall impair any such right, power or
remedy or be construed to be a waiver thereof or an acquiescence therein.
No single or partial exercise of any such right, power or remedy shall
preclude any other or further exercise thereof or the exercise of any
other right, power or remedy. No action of EDC in respect of any such
default, or acquiescence by it therein, shall affect or impair any right,
power or remedy of EDC in respect of any other default.
	 
	(e)	 	The rights and remedies provided in this Agreement and the other
Financing Agreements are cumulative and not exclusive of any other rights
or remedies, whether provided by applicable law or otherwise.

Section 8.07   Indemnification

	(a)	 	The Borrower assumes full liability for, and agrees to and shall
indemnify and hold harmless EDC and its officers, directors, employees,
agents and servants against and from any and all liabilities, obligations,
losses, damages (compensatory, punitive or otherwise), penalties, claims,
actions, taxes, duties, suits, costs and expenses (including, without
limitation, reasonable legal counsel’s fees and expenses and costs of
investigation including, where applicable, VAT) of whatsoever kind and
nature (as the same is described in a notice provided by EDC to the
Borrower in respect thereof) including, without prejudice to the
generality of the foregoing, those arising in contract or tort (including,
without limitation, negligence) or by strict liability or otherwise, which
are imposed on, incurred by or asserted against EDC or any of its
officers, directors, employees, agents or servants (whether or not also
indemnified by any other person under

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	 	 	any other document) and which in any way relate to or arise out of,
whether directly or indirectly:

	 	(1)	 	any of the transactions contemplated by any Financing
Agreement, Project Agreement, or other Material Agreement or the
execution, delivery or performance thereof;
	 
	 	(2)	 	the operation or maintenance of the Borrower’s facilities or
the ownership, control or possession thereof by the Borrower; or
	 
	 	(3)	 	the exercise by EDC of any of its rights and remedies under
any of the Financing Agreements;

	 	 	provided that EDC shall not have any right to be indemnified hereunder
for its own recklessness or wilful misconduct.
	 
	(b)	 	The Borrower acknowledges that EDC is entering into this Agreement and
has acted solely as a lender, and not as an advisor, to the Borrower. The
Borrower represents and warrants that, in entering into the Financing
Agreements, it has engaged, and relied upon advice given to it by, its own
legal, financial and other professional advisors and it has not relied on
and will not hereafter rely on any advice given to it by EDC.
	 
	(c)	 	If any sum (a “Sum”) due from the Borrower under this Agreement or any
order, judgment, or award given or made in relation hereto has to be
converted from the currency (the “First Currency”) in which such Sum is
payable into another currency (the “Second Currency”) for the purpose of:

	 	(i)	 	making or filing a claim or proof against the
Borrower;
	 
	 	(ii)	 	obtaining an order, judgment, award or decision
in any court, arbitral proceedings or other tribunal; or
	 
	 	(iii)	 	enforcing any order, judgment, award or decision
given or made in relation hereto,

	 	 	the Borrower shall indemnify EDC for any Sum which is due to EDC from and
against any loss suffered or incurred as a result of any discrepancy
between (a) the rate of exchange used for such purpose to convert such
Sum from the First Currency into the Second Currency and (b) the rates of
exchange available to EDC at the time of receipt of such Sum.
	 
	(d)	 	Set-off:

	 	(i)	 	Contractual Set-off. The Borrower authorizes EDC
to apply any amounts owed by EDC to the Borrower in
satisfaction of any sum due and payable from the Borrower to
EDC hereunder but unpaid. For this purpose, EDC is authorized
to purchase with the moneys standing to the credit of any

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	 	 	 	such account such other currencies as may be necessary to
effect such application;
	 
	 	(ii)	 	Set-off not Mandatory. EDC shall not be obliged
to exercise any right given to it by Section 8.07(d)(i).

Section 8.08   Governing Law

This Agreement shall be governed by and construed in accordance with the laws of England.

Section 8.09   Arbitration and Jurisdiction

	(a)	 	Any dispute, controversy or claim arising out of or relating to this
Agreement, or the breach, termination or invalidity hereof, shall be
settled by arbitration in accordance with the UNCITRAL Arbitration Rules
as at present in force. There shall be one arbitrator and the appointing
authority shall be the London Court of International Arbitration. The
seat and place of arbitration shall be London, England and the English
language shall be used throughout the arbitral proceedings. The parties
hereby waive any rights under the Arbitration Act 1996 to appeal any
arbitration award to, or to seek determination of a preliminary point of
law by, the Courts of England. The arbitral tribunal shall not be
authorised to take or provide, and the Borrower agrees that it shall not
seek from any judicial authority, any interim measures of protection or
pre-award relief against EDC, any provisions of UNCITRAL Arbitration Rules
notwithstanding. The arbitral tribunal shall have authority to consider
and include in any proceeding, decision or award any further dispute
properly brought before it by EDC or the Borrower insofar as such dispute
arises out of any Financing Agreement, but, subject to the foregoing, no
other parties or other disputes shall be included in, or consolidated
with, the arbitral proceedings. In any arbitral proceeding, the
certificate of EDC as to any amount due to EDC under any Financing
Agreement shall be prima facie evidence of such amount.
	 
	(b)	 	Notwithstanding Section 8.09(a), this Agreement and the other Financing
Agreements, and any rights of EDC arising out of or relating to this
Agreement or any other Financing Agreement, may, at the option of EDC, be
enforced by EDC in the courts of Romania or in any other courts having
jurisdiction. For the benefit of EDC, the Borrower hereby irrevocably
submits to the non-exclusive jurisdiction of the courts of England with
respect to any dispute, controversy or claim arising out of or relating to
this Agreement or any other Financing Agreement, or the breach,
termination or invalidity hereof or thereof. The Borrower hereby
irrevocably designates, appoints and empowers The Law Debenture Corporate
Services Limited at its registered office (being, on the date hereof, at
100 Wood Street, 5th Floor, London EC2V 7EX, England) to act as its
authorised agent to receive service of process and any other legal summons
in England for purposes of any such action or proceeding. The Borrower
hereby irrevocably consents to the service of process or any other legal
summons out of such courts by mailing copies thereof by registered airmail
postage prepaid to its address specified herein. The Borrower covenants
and agrees that, so long as it has any obligations under this Agreement,
it shall maintain a duly appointed agent to receive service of process and
any other legal summons in any legal action or proceeding brought by EDC
in England in respect of any

     

     

- 86 -

 

	 	 	Financing Agreement and shall keep EDC advised of the
identity and location of such agent. Nothing herein
shall affect the right of EDC to commence legal actions
or proceedings against the Borrower in any manner
authorised by the laws of any relevant jurisdiction. The
commencement by EDC of legal actions or proceedings in
one or more jurisdictions shall not preclude EDC from
commencing legal actions or proceedings in any other
jurisdiction, whether concurrently or not. The Borrower
irrevocably waives any objection it may now or hereafter
have on any grounds whatsoever to the laying of venue of
any legal action or proceeding and any claim it may now
or hereafter have that any such legal action or
proceeding has been brought in an inconvenient forum.

Section 8.10   Privileges and Immunities of EDC

Nothing in this Agreement shall be construed as a waiver, renunciation or other
modification of any immunities, privileges or exemptions of EDC accorded under
the Canadian-Romanian Income Tax Convention, international convention or any
applicable law.

Section 8.11   Waiver of Sovereign Immunity

The Borrower represents and warrants that this Agreement and the incurring by
the Borrower of EDC Loan are commercial rather than public or governmental acts
and that the Borrower is not entitled to claim immunity from legal proceedings
with respect to itself or any of its assets on the grounds of sovereignty or
otherwise under any law or in any jurisdiction where an action may be brought
for the enforcement of any of the obligations arising under or relating to this
Agreement. To the extent that the Borrower or any of its assets has or
hereafter may acquire any right to immunity from set-off, legal proceedings,
attachment prior to judgement, other attachment or execution of judgement on
the grounds of sovereignty or otherwise, the Borrower hereby irrevocably waives
such rights to immunity in respect of its obligations arising under or relating
to this Agreement.

Section 8.12   Successors and Assigns; Third Party Rights.

	(a)	 	Binding Agreement. This Agreement shall be binding upon and enure to the
benefit of each party hereto and its or any subsequent successors and
transferees.
	 
	(b)	 	No Assignments and Transfers by the Borrower. The Borrower shall not be
entitled to assign or transfer all or any of its rights, benefits and
obligations hereunder.
	 
	(c)	 	Assignments and Transfers. EDC may, at any time, (i) assign any of its
rights and benefits hereunder, or (ii) transfer by novation any of its
rights, benefits and obligations hereunder, provided that in respect of
transfers (save in the case of any transfer (a) to any subsidiary of EDC,
(b) after the occurrence of the final Disbursement hereunder, the
suspension or cancellation of the EDC Loan, or an Event of Default or
Potential Event of Default, or (c) which occurs after the end of the
Tranche II Commitment Period) and subject as provided in Section 8.12(d),
no such assignment or transfer may be made without the prior written
consent of the Borrower, such consent not to be unreasonably withheld or
delayed.

     

     

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	(d)	 	Deemed Consent. Any consent required to be given by a party under
Section 8.12(c) shall be deemed to have been given unless such party shall
have notified the requesting party to the contrary within five (5)
Business Days of the request for such consent.
	 
	(e)	 	Third Party Rights. Except as provided in Section 8.12(a) or 8.12(b), a
person who is not a party to this Agreement may not enforce any of its
terms under the Contracts (Rights of Third Parties) Act 1999.
Notwithstanding any term of this Agreement, the consent of any third party
is not required for any variation (including any release or compromise of
any liability under) or termination of this Agreement.

Section 8.13   Disclosure

	(a)	 	EDC may disclose such documents, information and records regarding the
Borrower and this transaction (including, without limitation, copies of
any Financing Agreements and Project Agreements) as EDC deems appropriate
in connection with any dispute involving the Borrower or any other party
to a Financing Agreement, for the purpose of preserving or enforcing any
of EDC’s rights under any Financing Agreement or collecting any amount
owing to EDC or in connection with any proposed sale, transfer,
assignment, novation or other disposal contemplated by Section 8.12.
	 
	(b)	 	Nothing in this Agreement shall prohibit EDC’s disclosure, following the
date of this Agreement, of the following information: the name of the
Borrower, the EDC financial service provided, a general description of the
commercial transaction and the amount of the EDC Loan and the name of any
Canadian suppliers to the Borrower.

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Section 8.14   Counterparts

This Agreement may be executed in several counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same
agreement.

IN WITNESS WHEREOF, the parties hereto, acting through their duly authorised
representatives, have caused this Agreement to be signed in their respective
names as of the date first above written.

MOBIFON S.A.

	 	 	 	 
	By:	 	 	 
	 	 	
	 
	 	 	Name:  James J. Jackson	 
	 	 	Title:    Senior Vice
President
	 	 	            and Chief Financial Officer
	 
	 
	 
	EXPORT DEVELOPMENT CANADA	 
	 
	 
	By:	 	 	 
	 	 	
	 
	 	 	Name:  Roman Chomyn	 
	 	 	Title:    Financial Services Manager
	 
	 
	By:	 	 	 
	 	 	
	 
	 	 	Name:  Andrea Tunney	 
	 	 	Title:    Financial Services Manager

 

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Exhibit A – Form of Disbursement Application – EDC Loan

[To Be Typed on Letterhead of the Borrower]

[Date]

Export Development Canada

151 O’Connor Street

Ottawa, Canada K1A 1K3

	 	 	 
	Attention:	 	
Loans Operation Team
	 	 	 
	Subject:	 	
Disbursement Application No.1

Sir/Madam:

	1.	 	Please refer to the loan agreement dated 27 August 2002 (the “Loan
Agreement”) between MobiFon S.A. (the “Borrower”) and Export Development
Canada (“EDC”).
	 
	2.	 	Expressions defined in the Loan Agreement shall bear the same meanings
herein.
	 
	3.	 	We hereby request the following Disbursement of the [Tranche I EDC
Loan]/[Tranche II EDC Loan] in accordance with the provisions of the Loan
Agreement:

	 	 	 
	 	Amount (in figures and words):	

	 	 	

	 	 	
     
	 	Value Date:	[As soon as possible, on a date selected by

EDC in its discretion, but not later than]2

	 	 	                                      3

Payment Instructions (Borrower’s Banking Details):

	 	 	 
	Borrower’s Account Name:	 	

	Borrower’s Account Number:	 	

	Borrower’s Bank Name:	 	

	Borrower’s Bank Address:	 	

	 	 	1 Each application must be numbered in series.
	 
	 	 	2 If the disbursement is required for a specific value date, this bracketed
language may be deleted.
	 
	 	 	3 This date must not be earlier than 10 Business Days (except in respect of the
Disbursement of the Tranche I EDC Loan, in which case 5 Business Days) after
the date the disbursement application is delivered to EDC.

A-1

 

Borrower’s Bank Correspondent Details:

	 	 	 
	Correspondent’s Name:4	 	

	Correspondent’s Address:	 	

	 	 	

	 	 	

	Borrower’s Bank’s Account Name:	 	

	Borrower’s Bank’s Account Number:	 	

	Reference:	 	

	4.	 	For the purposes of Section 4.03(b) of the Loan Agreement, we hereby
represent and warrant that:

	 	(a)	 	all agreements, documents and instruments delivered to EDC
pursuant to Section 4.01 of the Loan Agreement are in full force and
effect and unconditional (except for the Loan Agreement having
become unconditional, if that is a condition of any such agreement);
	 
	 	(b)	 	the representations and warranties made by the Borrower in
the Financing Agreements and Project Agreements are true on and as
of the date hereof with the same effect as though such
representations and warranties had been made on and as of the date
hereof;
	 
	 	(c)	 	no Event of Default or Potential Event of Default has
occurred and is continuing or is imminent;
	 
	 	(d)	 	the Borrower will not, as a result of such Disbursement, be
in violation of its Charter, any provision contained in any material
agreement or instrument to which the Borrower is a party (including
the Loan Agreement) or by which the Borrower is bound or any law
applicable to the Borrower;
	 
	 	(e)	 	nothing has occurred which might have a material adverse
effect on the Project, the Borrower’s business, operations or
financial condition or the ability of the Borrower to perform any of
its obligations under any Financing Agreement or Project Agreement;
and
	 
	 	(f)	 	the proceeds of such Disbursement are needed by the Borrower
for the purposes set out in [Section 4.01(n).] [In case of a
Tranche I EDC Loan Disbursement] [Section 4.03(e)] [In case of a
Tranche II EDC Loan Disbursement].

	5.	 	For the purpose of Section 4.03(g) we hereby represent and warrant that,
upon giving effect to such Disbursement, and any concurrent disbursements
under the EBRD Loan and the NIB Loan, the total Disbursements under the
EDC Loan shall remain pro rata as among the EDC Loan, the EBRD Loan, and
the NIB Loan.

	 	 	4 Name of bank in country of Loan Currency.

A-2

 

	6.	 	The representations and warranties made in paragraphs 4 and 5 above on
this date will continue to be true on and as of the date of such
Disbursement with the same effect as though such representations and
warranties had been made on and as of the date of such Disbursement. If
any such representation or warranty is no longer true on or prior to or as
of the date of such Disbursement, we shall immediately notify EDC and
shall, upon demand by EDC, repay any amount which has been or is disbursed
by EDC in respect of such Disbursement.

Yours faithfully,

MOBIFON S.A.

By:

Authorised Representative5

	 	 	5 As named in the Certificate of Incumbency and Authority.

A-3

 

Exhibit B – Form of Certificate of Incumbency and Authority

[To Be Typed on Letterhead of the Borrower]

[Date]

Export Development Canada

151 O’Connor Street

Ottawa, Canada K1A 1K3

	 	 	 
	Attention:	 	
Loans Operation Team
	Subject:	 	
Certificate of Incumbency and Authority6

Sir/Madam:

With reference to the loan agreement dated 27 August 2002 (the “Loan
Agreement”) between MobiFon S.A. (the “Borrower”) and Export Development Canada
(“EDC”), I, the undersigned [President] [Chairman of the Board of Directors]
[Chief Executive Officer] of the Borrower, duly authorised by its Board of
Directors, hereby certify that the following are the names, offices and true
specimen signatures of the persons, any one of whom is and will continue to be
(until EDC has received actual written notice from the Borrower that they or
any of them no longer continue to be) authorised, on behalf of the Borrower,
individually:

	1.	 	to sign the Loan Agreement, any Disbursement applications,
certifications, letters or other documents to be provided under the Loan
Agreement and any other agreements to which EDC and the Borrower may be
party in connection therewith; and
	 
	2.	 	to take any other action required or permitted to be taken by the
Borrower under the Loan Agreement or any other agreement to which EDC and
the Borrower may be party in connection therewith:

	 	 	 	 	 
	NAME	 	
OFFICE
	 	SPECIMEN SIGNATURE
	
	 	

	 	

	
	 	

	 	

	
	 	

	 	

	
	 	

	 	

	 	 	6 Designation may be changed by the Borrower at any time by providing a new
Certificate of Incumbency and Authority to EDC.

B-1

 

IN WITNESS WHEREOF, I have signed my name on the date first above written.

Yours faithfully,

MOBIFON S.A.

	 	 
	By:	

	 	Name:

Title:  [President]

          [Chairman of the Board of Directors]

          [Chief Executive Officer]

B-2

 

Exhibit C – Form of Letter to Auditors

[To Be Typed on Letterhead of the Borrower]

[Date]

[Name of Auditors]

[Address]

Sir/Madam:

We hereby authorise and request you to give to Export Development Canada
(“EDC”) all such information as it may reasonably request with regard to our
Financial Statements, both audited and unaudited, which we have agreed to
furnish to EDC under the terms of the loan agreement dated 27 August 2002 (the
“Loan Agreement”) between ourselves and EDC. For your information, we enclose
a copy of the Loan Agreement.

We authorise you to send our audited accounts to EDC to enable us to satisfy
the reporting requirements set forth in Section 5.13 of the Loan Agreement.
When submitting the same to EDC, you are also requested to send, at the same
time, a copy of your full report on such accounts in a form acceptable to EDC.

For our records, please ensure that you send to us a copy of every letter which
you receive from EDC immediately upon receipt and a copy of each reply made by
you immediately upon the issue thereof.

Yours faithfully,

MOBIFON S.A.

	 	 
	By:
	 	

	 	Authorised Representative

	 	 

	Enclosure: Loan Agreement
	 	 

	cc:	Export Development Canada

151 O’Connor Street

Ottawa, Canada  K1A 1K3

Attention:   Loans Operation Team

Subject:

C-1

 

SCHEDULE A – LIST OF MATERIAL AGREEMENTS

Agreements

	1.	 	The Financing Agreements.
	 
	2.	 	The Project Agreements.
	 
	3.	 	Any Site Agreements.
	 
	4.	 	Any Handset Agreements.
	 
	5.	 	The SIM Card Agreements.
	 
	6.	 	Any Roaming Agreements.
	 
	7.	 	Lease Agreements with all lessors and in respect of all Major Leases
identified in Annex A-1 to this Schedule A.
	 
	8.	 	The following Interconnection Agreements:

Interconnection Agreements & Amendments

	 	 	 
	Operator	 	Dated
	
	 	

	Romtelecom	 	
6-Aug-97
	Additional Act no.1	 	
12-Mar-98
	Additional Act no.2	 	
2-May-99
	Additional Act no.3	 	
30-Jul-99
	Orange (Mobil Rom)	 	
12-May-99
	Additional Act no.1	 	
28-May-99
	Additional Act no.2	 	
9-Oct-00
	TELEMOBIL SA	 	
31-Mar-01
	Additional Act no.1	 	
20-Mar-02
	Additional Act no.2	 	
9-Aug-02
	Cosmorom SA	 	
20-Mar-00
	Additional Act no.1	 	
12-Apr-01

Sched A-1

 

	9.	 	All agreements identified in Annex A-2 to this Schedule A;
	 
	10.	 	Amendments to the License Regarding Installation and Operation of Public
GSM Communication Network in Romania dated June 4, 1998 and September 17,
1998 (Romanian original and English translation);
	 
	11.	 	Certificate of investor dated May 19, 1998 issued to MobiFon S.A. by the
Ministry of Privatization — Department of Foreign Investment Promotion;
	 
	12.	 	Other agreements identified as Material Agreements by EDC from time to
time after the date of this Agreement in consultation with the Borrower.

Corporate Documents

	1.	 	Additional Act to the Contract of
Association of MobiFon S.A. —
authenticated by public notary on February 20, 1997 — authentication
minutes no.106/1997;
	 
	2.	 	Additional Act to the Contract of
Association of MobiFon S.A. —
authenticated by public notary on August 29, 1997 — authentication minutes
no.81/1997;
	 
	3.	 	Additional Act to the Contract of Association and Statutes of MobiFon
S.A. — authenticated by public notary on September 16, 1997 -
authentication minutes no.980/1997;
	 
	4.	 	Additional Act to the Contract of Association and Statutes of MobiFon
S.A. — authenticated by public notary on October 09, 1997 — authentication
minutes no.5089/1997;
	 
	5.	 	Additional Act to the Contract of Association and Statutes of MobiFon
S.A. — authenticated by public notary on January 22, 1998 — authentication
minutes no.359/1998;
	 
	6.	 	Additional Act to the Contract of Association and Statutes of MobiFon
S.A. — authenticated by public notary on February 26, 1998
—
authentication minutes no.1091/1998;
	 
	7.	 	Additional Act to the Contract of Association and Statutes of MobiFon
S.A. — authenticated by public notary on April 7, 1998 — authentication
minutes no.1975/1998;
	 
	8.	 	Additional Act to the Contract of Association and Statutes of MobiFon
S.A. — authenticated by public notary on May 11, 1998 — authentication
minutes no.2619/1998;
	 
	9.	 	Additional Act to the Contract of Association and Statutes of MobiFon
S.A. — authenticated by public notary on May 11, 1998 — authentication
minutes no.2620/1998;
	 
	10.	 	Additional Act to the Contract of Association and Statutes of MobiFon
S.A. — authenticated by public notary on May 11, 1998 — authentication
minutes no.2621/1998;

Sched A-2

 

	11.	 	Additional Act to the Contract of Association and Statutes of MobiFon
S.A. — authenticated by public notary on September 11, 1998
—
authentication minutes no.6110/1998;
	 
	12.	 	Additional Act to the Contract of Association and Statutes of MobiFon
S.A. — authenticated by public notary on October 15, 1998 — authentication
minutes no.6748/1998;
	 
	13.	 	Additional Act to the Contract of Association and Statutes of MobiFon
S.A. — authenticated by public notary on December 15, 1998
—
authentication minutes no.7779/1998;
	 
	14.	 	Additional Act to the Contract of Association and Statutes of MobiFon
S.A. — authenticated by public notary on October 16, 1998 — authentication
minutes no.6776/1998;
	 
	15.	 	Additional Act to the Contract of Association and Statutes of MobiFon
S.A. — authenticated by public notary on December 10, 1998
—
authentication minutes no.7703/1998;
	 
	16.	 	Additional Act to the Contract of Association and Statutes of MobiFon
S.A. — authenticated by public notary on December 15, 1998
—
authentication minutes no.7778/1998;
	 
	17.	 	Additional Act to the Contract of Association and Statutes of MobiFon
S.A. — authenticated by public notary on March 9, 1999 — authentication
minutes no.1180/1999;
	 
	18.	 	Additional Act to the Contract of Association and Statutes of MobiFon
S.A. — authenticated by public notary on June 11, 1999 — authentication
minutes no.2978/1999;
	 
	19.	 	Additional Act to the Contract of Association and Statutes of MobiFon
S.A. — authenticated by public notary on June 11, 1999 — authentication
minutes no.2977/1999;
	 
	20.	 	Additional Act to the Contract of Association and Statutes of MobiFon
S.A. — authenticated by public notary on August 24, 1999 — authentication
minutes no.4393/1999;
	 
	21.	 	Additional Act to the Contract of Association and Statutes of MobiFon
S.A. — authenticated by public notary on November 19, 1999
—
authentication minutes no.5863/1999;
	 
	22.	 	Additional Act to the Contract of Association and Statutes of MobiFon
S.A. — authenticated by public notary on June 11, 1999 — authentication
minutes no.2977/1999;
	 
	23.	 	Additional Act to the Contract of Association and Statutes of MobiFon
S.A. — authenticated by public notary on August 24, 1999 — authentication
minutes no.4393/1999;

Sched A-3

 

	24.	 	Additional Act to the Contract of Association and Statutes of MobiFon
S.A. — authenticated by public notary on December 08, 1999
—
authentication minutes no.6174/1999;
	 
	25.	 	Additional Act to the Contract of Association and Statutes of MobiFon
S.A. — authenticated by public notary on December 08, 1999
—
authentication minutes no.6173/1999;
	 
	26.	 	Additional Act to the Contract of Association and Statutes of MobiFon
S.A. — authenticated by public notary on December 08, 1999
—
authentication minutes no.6172/1999;
	 
	27.	 	Additional Act to the Contract of Association and Statutes of MobiFon
S.A. — authenticated by public notary on December 08, 1999
—
authentication minutes no.6175/1999;
	 
	28.	 	Additional Act to the Contract of
Association of MobiFon S.A. —
authenticated by public notary on June 8, 2000 — authentication minutes
no.2701/2000;
	 
	29.	 	Additional Act to the Contract of
Association of MobiFon S.A. —
authenticated by public notary on June 8, 2000 — authentication minutes
no.2702/2000;
	 
	30.	 	Additional Act to the Contract of Association and Statutes of MobiFon
S.A. — authenticated by public notary on April 05, 2001 — authentication
minutes no.1413/2001;
	 
	31.	 	Additional Act to the Contract of Association and Statutes of MobiFon
S.A. — authenticated by public notary on April 05, 2001 — authentication
minutes no.1414/2001;
	 
	32.	 	Additional Act to the Contract of Association and Statutes of MobiFon
S.A. — authenticated by public notary on February 12, 2001
—
authentication minutes no.488/2001;
	 
	33.	 	Additional Act to the Contract of Association and Statutes of MobiFon
S.A. — authenticated by public notary on February 12, 2001
—
authentication minutes no.489/2001;
	 
	34.	 	Additional Act to the Contract of Association and Statutes of MobiFon
S.A. — authenticated by public notary on April 05, 2001 — authentication
minutes no.1412/2001;
	 
	35.	 	Additional Act to the Contract of Association and Statutes of MobiFon
S.A. — authenticated by public notary on July 27, 2001 — authentication
minutes no.4254/2001
	 
	36.	 	Additional Act to the Contract of Association and Statutes of MobiFon
S.A. — authenticated by public notary on July 27, 2001 — authentication
minutes no.4255/2001;
	 
	37.	 	Additional Act to the Contract of Association and Statutes of MobiFon
S.A. — authenticated by public notary on November 8, 2001 — authentication
minutes no.6248/2001;

Sched A-4

 

	38.	 	Additional Act to the Contract of Association and Statutes of MobiFon
S.A. — authenticated by public notary on November 8, 2001 — authentication
minutes no.6249/2001;
	 
	39.	 	Additional Act to the Contract of Association and Statutes of MobiFon
S.A. — authenticated by public notary on January 23, 2002 — authentication
minutes no.236/2002;
	 
	40.	 	Additional Act to the Contract of
Association of MobiFon S.A. —
authenticated by public notary on March 5, 2002 — authentication minutes
no.875/2002;
	 
	41.	 	Additional Act to the Contract of Association and Statutes of MobiFon
S.A. — authenticated by public notary on April 24, 2002 — authentication
minutes no.1803/2002;
	 
	42.	 	Additional Act to the Contract of Association and Statutes of MobiFon
S.A. — authenticated by public notary on July 25, 2002 — authentication
minutes no.3420/2002;
	 
	43.	 	Additional Act to the Contract of Association and Statutes of MobiFon
S.A. — authenticated by public notary on July 25, 2002 — authentication
minutes no.3421/2002.

Sched A-5

 

ANNEX A-1 TO SCHEDULE A — MAJOR LEASES

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Rent/month as per	 	 	 	 
	 	 	Loc.	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Option	 	Contract	 	Total
	Town	 	Name	 	Landlord	 	Duration (years)	 	Date of contract	 	Termination date	 	(years)	 	w/o VAT	 	(entire duration)
	
	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 	

	Bacau
	 	MSC nou	 	Delta Intensive Trade	 	10	 	 	1-Jul-02	 	1-Jul-12	 	 	5	 	 	$	9,600	 	 	 	1,152,000	 
	Cluj
	 	MSC #4	 	Compania de Informatica Aplicata SA	 	20	 	 	1-Jan-98	 	31-Dec-18	 	 	 	 	 	$	7,850	 	 	 	1,554,300	 
	Timisoara
	 	MSC #3	 	Inst. Chimie	 	25	 	 	8-Sep-97	 	7-Sep-22	 	 	 	 	 	$	2,500	 	 	 	607,500	 
	Brasov
	 	RSO	 	SIF Transilvania Brasov	 	5	 	 	19-Jul-99	 	18-Jul-04	 	 	 	 	 	$	6,887	 	 	 	168,732	 
	Brasov
	 	MSC Brasov	 	Delta Intensive Trade	 	10 years and 5 months	 	1-Jul-01	 	26-Nov-11	 	 	 	 	 	$	11,820	 	 	 	1,539,844	 
	Brasov
	 	Call Center	 	Delta Intensive Trade	 	10 years and 4 months	 	1-Aug-01	 	26-Nov-11	 	 	 	 	 	$	15,000	 	 	 	1,984,500	 
	Constanta
	 	RSO	 	Com Auto srl	 	5	 	 	1-Jan-99	 	31-Dec-04	 	 	 	 	 	$	9,432	 	 	 	282,960	 
	Craiova
	 	RSO	 	Marex srl	 	5	 	 	1-May-99	 	30-Apr-04	 	 	 	 	 	$	4,950	 	 	 	108,900	 
	Bucharest
	 	Connex Center	 	Avrig 35 SA	 	7	 	 	5-Dec-01	 	1-Dec-10	 	 	2	 	 	$	173,200	 	 	 	14,029,000	 
	Bucharest
	 	MSC	 	DBC - Delta Trade Intensive	 	 	 	 	 	 	 	 	 	30-Oct-07	 	 	 	 	 	$	80,912	 	 	 	5,865,152	 
	Bucharest
	 	Wareh	 	DBC 2	 	 	 	 	 	 	 	 	 	30-Oct-07	 	 	 	 	 	$	82,400	 	 	 	5,928,172	 
	Bucharest
	 	CS	 	Paneuro International	 	2	 	 	15-Mar-00	 	15-Mar-04	 	 	1	 	 	$	14,000	 	 	 	287,000	 
	Bucharest
	 	MSC	 	Avrig 35 SA	 	10	 	 	5-Oct-99	 	4-Oct-09	 	 	 	 	 	$	342,052	 	 	 	32,634,945	 
	Bucharest
	 	Wareh	 	Comautosport SA	 	3	 	 	16-Apr-01	 	15-Apr-04	 	 	 	 	 	$	16,952	 	 	 	364,468	 
	Bucharest
	 	CS	 	Piaston Romania	 	3 years 6 months	 	25-Apr-01	 	25-Oct-04	 	 	 	 	 	$	9,000	 	 	 	252,000	 
	Bucharest
	 	AO	 	CBC - NOVA TRADE	 	 	 	 	 	1-Jun-02	 	31-Dec-03	 	 	 	 	 	$	181,208	 	 	 	3,261,744	 

Annex A-1-1

 

ANNEX A-2 TO SCHEDULE A — MATERIAL AGREEMENTS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	No.	 	Contract No.	 	Supplier	 	Contract Date	 	Contract Description	 	Period	 	Value (USD)	 	Comments
	
	 	
	 	
	 	
	 	
	 	
	 	
	 	

	 	1
	 	Contract - signed only in Romanian	 	ADVANTAGE SOFTWARE FACTORY	 	21-Dec-02	 	Implementation contract for Collection System	 	 	02.09.2003	 	 	 	550,000	 	 	Fixed value in contract
	 	2
	 	Supply contract FN00-207 & Amendament	 	Breezecom / ALVARION	 	8-Apr-00	 	Frame contract	 	 	5/8/2003	 	 	 	4,100,000	 	 	Payments value -ytd
	 	3
	 	 	 	 	 	AMDOCS	 	9-Jul-02	 	Contract Implementare Billing System+Licente	 	 	 	 	 	 	4,600,000	 	 	Fixed value in contract
	 	4
	 	Telecommunication Service Provider Agreement	 	CISCO SYSTEMS	 	5-Jun-01	 	Frame contract	 	12-Oct-06	 	 	4,079,360	 	 	Payments value -ytd
	 	5
	 	Supply and Installation Contract of CMG Products	 	CMG	 	25-Jul-97	 	Frame contract	 	 	 	 	 	 	2,981,298	 	 	Payments value -ytd
	 	6
	 	Voice Messaging System Purchase Order & License Agreement	 	COMVERSE (ex  EFRAT)	 	16-Apr-97	 	Frame contract	 	 	 	 	 	 	8,402,014	 	 	Payments value -ytd
	 
	 	7
	 	GSM System Service Contract	 	ERICSSON Radio System AB	 	1-Feb-97	 	Frame contract	 	Dec-06	 	 	266,018,723	 	 	Payments value -ytd
	 	8
	 	Amendament nr.3/06.08.2001 to the GSM System Service Contract	 	ERICSSON Radio System AB	 	2-Mar-97	 	Support contract	 	 	 	 	 	 	2,070,268	 	 	 	 	 
	 
	 	9
	 	Implementation Contract	 	ERICSSON ROMANIA SRL	 	12-Oct-01	 	One time order	 	20-Jul-02	 	 	1,787,392	 	 	Payments value ytd
	 	10
	 	Act Adit No 5 to the Agreement no.0906/2000	 	GTS ROMANIA SRL	 	9-Apr-02	 	Frame contract	 	9-Nov-02	 	 	2,496,000	 	 	Payments value ytd
	 	11
	 	Supply contract (Hard & soft) - signed only in Romanian	 	HEWLETT PACKARD ROMANIA SRL	 	9-Jul-01	 	Frame contract	 	 	 	 	 	 	2,278,702	 	 	Payments value ytd
	 	12
	 	Country Transaction Document for Romania	 	IBM ROMANIA	 	29-Mar-01	 	Frame contract	 	 	 	 	 	 	1,265,151	 	 	Payments value ytd
	 	13
	 	Framework contractor agreement no.CS99005 - signed only in Romanian	 	IMSAT Bucuresti	 	8-Feb-99	 	Frame Contract	 	 	 	 	 	 	1,277,707	 	 	Payments value ytd
	 
	 	14
	 	Supply contract E-05/98 & Amendament 1,2	 	BOSCH TELECOM GmbH	 	26-May-98	 	Frame contract	 	31-Dec-02	 	 	1,300,000	 	 	Payments value -ytd
	 	15
	 	Supply contract no. M42417	 	MITSUI & CO ltd	 	9-Nov-01	 	Frame contract	 	31-Dec-02	 	 	2,264,360	 	 	Payments value -ytd
	 	16
	 	Supply contract FN00-205	 	NERA NETWORKS	 	4-Aug-00	 	Frame contract	 	11-Jun-02	 	 	2,157,114	 	 	Payments value -ytd
	 	17
	 	Supply contract FN01-238	 	NETRO CORPORATION	 	11-Jun-01	 	Frame contract	 	31-Dec-02	 	 	2,197,285	 	 	Payments value -ytd
	 	18
	 	MULTISERVICE Network Equipment Purchase Agreement and thereof the amendments from no.  1-7	 	NORTEL NETWORKS IRELAND	 	28-Nov-00	 	Frame contract	 	31-Dec-02	 	 	25,935,272	 	 	Payments value ytd
	 
	 	19
	 	Agreement	 	SAS INSTITUTE GMBH	 	12-Jul-01	 	DW Contract	 	 	 	 	 	 	787,850	 	 	Fixed value in contract
	 	20
	 	Supply Agreement	 	SEMA UK LTD	 	18-Jul-01	 	CRM Contract	 	 	 	 	 	 	2,124,987	 	 	Fixed value in contract
	 	21
	 	Agreement for the Supply of Systems	 	SCHLUMBERGER SEMA	 	11-Jun-02	 	One Order Contract	 	 	 	 	 	 	941,440	 	 	Fixed value in contract
	 	22
	 	Agreement for the supply of CABS 2000 1802/CG/RC/CW	 	SEMA GROUP UK LTD	 	4-Apr-97	 	CABS 2000 Billing System	 	 	 	 	 	 	15,713,551	 	 	Payments value ytd
	 
	 	23
	 	CABS 2000 Support Agreement & Business Support Services Agreement	 	SEMA GROUP UK LTD	 	4-Apr-97	 	Support Contract	 	 	 	 	 	 	903,768	 	 	Payments value ytd
	 
	 	24
	 	IN System Equipment and Services Contract	 	SIEMENS	 	25-Oct-00	 	Frame contract	 	 	 	 	 	 	13,915,662	 	 	Payments value ytd
	 
	 	Ammendment 1 of IN System Equipment and Services Contract	 	SIEMENS	 	25-Oct-01	 	GPRS Frame Contract	 	 	 	 	 	 	2,208,054	 	 	Payments value ytd
	 
	 	Amend. no 2	 	SIEMENS	 	23-Oct-01	 	Frame contract	 	 	 	 	 	 	834,855	 	 	Payments value ytd
	 	25
	 	Addendum, Continuation to Maintenance and Support Contract from 07.12.2000	 	SICAP LTD	 	27-Jun-02	 	Contract suport tehnic	 	 	01.01.2004	 	 	 	380,600	 	 	Payments value ytd
	 
	 	26
	 	SICAP Addendum	 	SICAP LTD	 	11-Jan-02	 	One Order Contract	 	 	 	 	 	 	638,000	 	 	Fixed value in contract
	 	27
	 	Contract (International signalling)	 	SWISSCOM	 	21-May-99	 	Frame contract	 	not specified	 	 	1,408,691	 	 	 	 	 
	 
	 	28
	 	Maintenance & Support Contract for SICAP Modules	 	SICAP LTD	 	26-Apr-01	 	Frame contract	 	 	 	 	 	 	4,912,214	 	 	Payments value ytd

Annex A-2-1

 

Annex A-2-2

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	No.	 	Contract No.	 	Supplier	 	Contract Date	 	Contract Description	 	Period	 	Value (USD)	 	Comments
	
	 	
	 	
	 	
	 	
	 	
	 	
	 	

	 	29
	 	Internet Portal Services Agreement	 	VODAFONNE GLOBAL PLATFORM and INTERNET SERVICES	 	26-Jul-01	 	Frame contract	 	 	 	 	 	 	1,152,848	 	 	Payments value ytd
	 	30
	 	Amendment to Supply Agreement of 06.05.1999	 	Nokia Corporation	 	19-Jun-02	 	Frame contract	 	1 year	 	 	10,424,973	 	 	 	 	 
	 	31
	 	Distributorship Agreement	 	Ericsson Mobile Communications	 	16-Dec-97	 	Frame contract	 	no	 	 	5,637,435	 	 	 	 	 
	 	32
	 	GSM Mobile Telephone Supply Agreement	 	Siemens AE	 	7-Aug-01	 	Frame contract	 	1 year	 	 	8,190,222	 	 	 	 	 
	 	33
	 	Amendment to Purchase Agreement of 01.01.2000	 	Schlumberger Systems	 	19-Feb-02	 	Frame contract	 	1 year	 	 	6,941,450	 	 	 	 	 
	 	34
	 	contract for media services - Agency of Record - signed only in Romanian	 	BV McCANN Advertising	 	25-Feb-02	 	Frame contract	 	1 year	 	 	3,411,471	 	 	 	 	 
	1,11,13, 35
	 	Contracts that must be translated in English	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

SCHEDULE B

FORM OF COMPLIANCE CERTIFICATE

To: Export Development Canada

Date:

 

Dear Sirs,

We refer to the loan agreement (the “Loan Agreement”) dated, 27 August 2002
between Mobifon S.A. (the “Borrower”) and Export Development Canada (“EDC”) as
lender.

Terms defined in the Loan Agreement shall bear the same meaning herein.

We confirm that:

[Insert details of financial conditions to be certified.]

[Signed:

	 	 	 
	
	 	

	Director	 	Director
	 
	or	 	 
	 
	 
	
	 	 
	for and on behalf of	 	 
	[name of Auditors of the Borrower]	 	 

 

Sched B-1

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	
    ARTICLE I — DEFINITIONS
    	 	 	1	 
	
    
    Section 1.01
    

    	 	
    Definitions
    	 	 	1	 
	
    
    Section 1.02
    

    	 	
    Interpretation
    	 	 	30	 
	 
	
    ARTICLE II — REPRESENTATIONS AND
    WARRANTIES
    	 	 	32	 
	
    
    Section 2.01
    

    	 	
    Representations Regarding the Project
    	 	 	32	 
	
    
    Section 2.02
    

    	 	
    Representations Regarding the Borrower
    	 	 	32	 
	
    
    Section 2.03
    

    	 	
    Representations Regarding the Agreements
    	 	 	35	 
	
    
    Section 2.04
    

    	 	
    Acknowledgement and Warranty
    	 	 	37	 
	 
	
    ARTICLE III — BANK LOAN
    	 	 	37	 
	
    
    Section 3.01
    

    	 	
    Amount and Currency
    	 	 	37	 
	
    
    Section 3.02
    

    	 	
    Purpose
    	 	 	38	 
	
    
    Section 3.03
    

    	 	
    Disbursements
    	 	 	38	 
	
    
    Section 3.04
    

    	 	
    Suspension and Cancellation
    	 	 	39	 
	
    
    Section 3.05
    

    	 	
    Charges, Commissions and Fees
    	 	 	40	 
	
    
    Section 3.06
    

    	 	
    Loan Currency Conversion
    	 	 	41	 
	
    
    Section 3.07
    

    	 	
    Interest
    	 	 	41	 
	
    
    Section 3.08
    

    	 	
    Default Interest
    	 	 	45	 
	
    
    Section 3.09
    

    	 	
    Repayment
    	 	 	46	 
	
    
    Section 3.10
    

    	 	
    Mandatory Prepayment
    	 	 	47	 
	
    
    Section 3.11
    

    	 	
    Voluntary Prepayment
    	 	 	50	 
	
    
    Section 3.12
    

    	 	
    Payments
    	 	 	52	 
	
    
    Section 3.13
    

    	 	
    Insufficient Payments
    	 	 	53	 
	
    
    Section 3.14
    

    	 	
    Taxes
    	 	 	53	 
	
    
    Section 3.15
    

    	 	
    Unwinding Costs
    	 	 	53	 
	
    
    Section 3.16
    

    	 	
    Increased Costs
    	 	 	56	 
	
    
    Section 3.17
    

    	 	
    Illegality
    	 	 	57	 
	
    
    Section 3.18
    

    	 	
    Loan Account
    	 	 	57	 
	 
	
    ARTICLE IV — CONDITIONS PRECEDENT
    	 	 	58	 
	
    
    Section 4.01
    

    	 	
    Tranche I Bank Loan Disbursement
    	 	 	58	 
	
    
    Section 4.02
    

    	 	
    First Tranche II Bank Loan Disbursement
    	 	 	62	 
	
    
    Section 4.03
    

    	 	
    All Disbursements
    	 	 	62	 
	
    
    Section 4.04
    

    	 	
    Participations
    	 	 	64	 
	 
	
    ARTICLE V — AFFIRMATIVE COVENANTS
    	 	 	64	 
	
    
    Section 5.01
    

    	 	
    Project Implementation and Use of Proceeds
    	 	 	64	 
	
    
    Section 5.02
    

    	 	
    Maintenance and Continuity of Business and
    Compliance with Obligations
    	 	 	64	 
	
    
    Section 5.03
    

    	 	
    Environment, Health and Safety
    	 	 	64	 
	
    
    Section 5.04
    

    	 	
    Insurance
    	 	 	64	 
	
    
    Section 5.05
    

    	 	
    Accounting
    	 	 	64	 
	
    
    Section 5.06
    

    	 	
    Continuing Governmental and Other Approvals
    	 	 	65	 

 

	 	 	 	 	 	 	 
	
    
    Section 5.07
    

    	 	
    Security
    	 	 	65	 
	
    
    Section 5.08
    

    	 	
    Taxes
    	 	 	67	 
	
    
    Section 5.09
    

    	 	
    Project Agreements
    	 	 	67	 
	
    
    Section 5.10
    

    	 	
    Financial Ratios
    	 	 	67	 
	
    
    Section 5.11
    

    	 	
    Further Documents
    	 	 	68	 
	
    
    Section 5.12
    

    	 	
    Costs and Expenses
    	 	 	69	 
	
    
    Section 5.13
    

    	 	
    Furnishing of Information
    	 	 	69	 
	
    
    Section 5.14
    

    	 	
    Procurement
    	 	 	73	 
	
    
    Section 5.15
    

    	 	
    License Compliance
    	 	 	73	 
	
    
    Section 5.16
    

    	 	
    Repayment of Existing Loans Indebtedness;
    Conditional Discharges
    	 	 	73	 
	 
	
    ARTICLE VI — NEGATIVE COVENANTS
    	 	 	73	 
	
    
    Section 6.01
    

    	 	
    Distributions
    	 	 	73	 
	
    
    Section 6.02
    

    	 	
    Financial Debt
    	 	 	76	 
	
    
    Section 6.03
    

    	 	
    Liens
    	 	 	77	 
	
    
    Section 6.04
    

    	 	
    Derivative Transactions
    	 	 	77	 
	
    
    Section 6.05
    

    	 	
    Arm’s Length Transactions
    	 	 	78	 
	
    
    Section 6.06
    

    	 	
    Profit-sharing and Management Arrangements
    	 	 	78	 
	
    
    Section 6.07
    

    	 	
    Investments
    	 	 	78	 
	
    
    Section 6.08
    

    	 	
    Project Agreements
    	 	 	79	 
	
    
    Section 6.09
    

    	 	
    Changes in Business and Capital
    	 	 	79	 
	
    
    Section 6.10
    

    	 	
    Prepayment of Long-term Debt
    	 	 	79	 
	
    
    Section 6.11
    

    	 	
    Sale of Assets; Merger
    	 	 	79	 
	
    
    Section 6.12
    

    	 	
    Shareholders Register
    	 	 	79	 
	
    
    Section 6.13
    

    	 	
    Public Offering or Public Secondary Sale
    	 	 	80	 
	 
	
    ARTICLE VII — EVENTS OF DEFAULT
    	 	 	80	 
	
    
    Section 7.01
    

    	 	
    Events of Default
    	 	 	80	 
	
    
    Section 7.02
    

    	 	
    Acceleration and Cancellation
    	 	 	82	 
	
    
    Section 7.03
    

    	 	
    Disbursements Due on Demand
    	 	 	83	 
	
    
    Section 7.04
    

    	 	
    Automatic Acceleration
    	 	 	83	 
	 
	
    ARTICLE VIII — MISCELLANEOUS
    	 	 	83	 
	
    
    Section 8.01
    

    	 	
    Term of Agreement
    	 	 	83	 
	
    
    Section 8.02
    

    	 	
    Entire Agreement; Amendment and Waiver
    	 	 	83	 
	
    
    Section 8.03
    

    	 	
    Notices
    	 	 	83	 
	
    
    Section 8.04
    

    	 	
    English Language
    	 	 	86	 
	
    
    Section 8.05
    

    	 	
    Financial Calculations
    	 	 	86	 
	
    
    Section 8.06
    

    	 	
    Rights, Remedies and Waivers
    	 	 	86	 
	
    
    Section 8.07
    

    	 	
    Indemnification
    	 	 	87	 
	
    
    Section 8.08
    

    	 	
    Governing Law
    	 	 	88	 
	
    
    Section 8.09
    

    	 	
    Arbitration and Jurisdiction
    	 	 	88	 
	
    
    Section 8.10
    

    	 	
    Privileges and Immunities of the Bank
    	 	 	89	 
	
    
    Section 8.11
    

    	 	
    Waiver of Sovereign Immunity
    	 	 	89	 
	
    
    Section 8.12
    

    	 	
    Successors and Assigns; Third Party Rights
    	 	 	90	 
	
    
    Section 8.13
    

    	 	
    Disclosure
    	 	 	90	 
	
    
    Section 8.14
    

    	 	
    Counterparts
    	 	 	91	 

 

	 	 	 	 	 	 	 
	
    Exhibit A — Form of Disbursement
    Application — Bank Loan
    	 	 	 	 
	 
	
    Exhibit B — Form of Certificate of
    Incumbency and Authority
    	 	 	 	 
	 
	
    Exhibit C — Form of Letter to
    Auditors
    	 	 	 	 
	 
	
    Schedule A — List of Material
    Agreements
    	 	 	 	 
	 
	
    Schedule B — Form of Compliance
    Certificate
    	 	 	 	 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	
    ARTICLE I — DEFINITIONS
    	 	 	1	 
	
    
    Section 1.01
    

    	 	
    Definitions
    	 	 	1	 
	
    
    Section 1.02
    

    	 	
    Interpretation
    	 	 	28	 
	 
	
    ARTICLE II — REPRESENTATIONS AND
    WARRANTIES
    	 	 	30	 
	
    
    Section 2.01
    

    	 	
    Representations Regarding the Project
    	 	 	30	 
	
    
    Section 2.02
    

    	 	
    Representations Regarding the Borrower
    	 	 	30	 
	
    
    Section 2.03
    

    	 	
    Representations Regarding the Agreements
    	 	 	33	 
	
    
    Section 2.04
    

    	 	
    Acknowledgement and Warranty
    	 	 	35	 
	 
	
    ARTICLE III — BANK LOAN
    	 	 	35	 
	
    
    Section 3.01
    

    	 	
    Amount and Currency
    	 	 	35	 
	
    
    Section 3.02
    

    	 	
    Purpose
    	 	 	36	 
	
    
    Section 3.03
    

    	 	
    Disbursements
    	 	 	36	 
	
    
    Section 3.04
    

    	 	
    Suspension and Cancellation
    	 	 	37	 
	
    
    Section 3.05
    

    	 	
    Charges and Commissions
    	 	 	38	 
	
    
    Section 3.06
    

    	 	
    Interest
    	 	 	38	 
	
    
    Section 3.07
    

    	 	
    Default Interest
    	 	 	39	 
	
    
    Section 3.08
    

    	 	
    Repayment
    	 	 	40	 
	
    
    Section 3.09
    

    	 	
    Mandatory Prepayment
    	 	 	41	 
	
    
    Section 3.10
    

    	 	
    Voluntary Prepayment
    	 	 	45	 
	
    
    Section 3.11
    

    	 	
    Payments
    	 	 	46	 
	
    
    Section 3.12
    

    	 	
    Insufficient Payments
    	 	 	47	 
	
    
    Section 3.13
    

    	 	
    Taxes
    	 	 	47	 
	
    
    Section 3.14
    

    	 	
    Unwinding Costs
    	 	 	48	 
	
    
    Section 3.15
    

    	 	
    Increased Costs
    	 	 	48	 
	
    
    Section 3.16
    

    	 	
    Illegality
    	 	 	49	 
	
    
    Section 3.17
    

    	 	
    Loan Account
    	 	 	49	 
	 
	
    ARTICLE IV — CONDITIONS PRECEDENT
    	 	 	49	 
	
    
    Section 4.01
    

    	 	
    Tranche I NIB Loan Disbursement
    	 	 	49	 
	
    
    Section 4.02
    

    	 	
    First Tranche II NIB Loan Disbursement
    	 	 	53	 
	
    
    Section 4.03
    

    	 	
    All Disbursements
    	 	 	54	 
	 
	
    ARTICLE V — AFFIRMATIVE COVENANTS
    	 	 	55	 
	
    
    Section 5.01
    

    	 	
    Project Implementation and Use of Proceeds
    	 	 	55	 
	
    
    Section 5.02
    

    	 	
    Maintenance and Continuity of Business and
    Compliance with Obligations
    	 	 	55	 
	
    
    Section 5.03
    

    	 	
    Environment, Health and Safety
    	 	 	55	 
	
    
    Section 5.04
    

    	 	
    Insurance
    	 	 	55	 
	
    
    Section 5.05
    

    	 	
    Accounting
    	 	 	56	 
	
    
    Section 5.06
    

    	 	
    Continuing Governmental and Other Approvals
    	 	 	56	 
	
    
    Section 5.07
    

    	 	
    Security
    	 	 	56	 
	
    
    Section 5.08
    

    	 	
    Taxes
    	 	 	58	 

 

	 	 	 	 	 	 	 
	
    
    Section 5.09
    

    	 	
    Project Agreements
    	 	 	58	 
	
    
    Section 5.10
    

    	 	
    Financial Ratios
    	 	 	58	 
	
    
    Section 5.11
    

    	 	
    Further Documents
    	 	 	59	 
	
    
    Section 5.12
    

    	 	
    Costs and Expenses
    	 	 	60	 
	
    
    Section 5.13
    

    	 	
    Furnishing of Information
    	 	 	61	 
	
    
    Section 5.14
    

    	 	
    Procurement
    	 	 	64	 
	
    
    Section 5.15
    

    	 	
    License Compliance
    	 	 	64	 
	
    
    Section 5.16
    

    	 	
    Repayment of Existing Loans Indebtedness;
    Conditional Discharges
    	 	 	64	 
	 
	
    ARTICLE VI — NEGATIVE COVENANTS
    	 	 	64	 
	
    
    Section 6.01
    

    	 	
    Distributions
    	 	 	65	 
	
    
    Section 6.02
    

    	 	
    Financial Debt
    	 	 	67	 
	
    
    Section 6.03
    

    	 	
    Liens
    	 	 	68	 
	
    
    Section 6.04
    

    	 	
    Derivative Transactions
    	 	 	69	 
	
    
    Section 6.05
    

    	 	
    Arm’s Length Transactions
    	 	 	69	 
	
    
    Section 6.06
    

    	 	
    Profit-sharing and Management Arrangements
    	 	 	69	 
	
    
    Section 6.07
    

    	 	
    Investments
    	 	 	70	 
	
    
    Section 6.08
    

    	 	
    Project Agreements
    	 	 	70	 
	
    
    Section 6.09
    

    	 	
    Changes in Business and Capital
    	 	 	70	 
	
    
    Section 6.10
    

    	 	
    Prepayment of Long-term Debt
    	 	 	71	 
	
    
    Section 6.11
    

    	 	
    Sale of Assets; Merger
    	 	 	71	 
	
    
    Section 6.12
    

    	 	
    Shareholders Register
    	 	 	71	 
	
    
    Section 6.13
    

    	 	
    Public Offering or Public Secondary Sale
    	 	 	71	 
	 
	
    ARTICLE VII — EVENTS OF DEFAULT
    	 	 	71	 
	
    
    Section 7.01
    

    	 	
    Events of Default
    	 	 	71	 
	
    
    Section 7.02
    

    	 	
    Acceleration and Cancellation
    	 	 	74	 
	
    
    Section 7.03
    

    	 	
    Disbursements Due on Demand
    	 	 	74	 
	
    
    Section 7.04
    

    	 	
    Automatic Acceleration
    	 	 	74	 
	 
	
    ARTICLE VIII — MISCELLANEOUS
    	 	 	75	 
	
    
    Section 8.01
    

    	 	
    Term of Agreement
    	 	 	75	 
	
    
    Section 8.02
    

    	 	
    Entire Agreement; Amendment and Waiver
    	 	 	75	 
	
    
    Section 8.03
    

    	 	
    Notices
    	 	 	75	 
	
    
    Section 8.04
    

    	 	
    English Language
    	 	 	77	 
	
    
    Section 8.05
    

    	 	
    Financial Calculations
    	 	 	77	 
	
    
    Section 8.06
    

    	 	
    Rights, Remedies and Waivers
    	 	 	78	 
	
    
    Section 8.07
    

    	 	
    Indemnification
    	 	 	79	 
	
    
    Section 8.08
    

    	 	
    Governing Law
    	 	 	80	 
	
    
    Section 8.09
    

    	 	
    Arbitration and Jurisdiction
    	 	 	80	 
	
    
    Section 8.10
    

    	 	
    Privileges and Immunities of NIB
    	 	 	81	 
	
    
    Section 8.11
    

    	 	
    Waiver of Sovereign Immunity
    	 	 	81	 
	
    
    Section 8.12
    

    	 	
    Successors and Assigns; Third Party Rights
    	 	 	81	 
	
    
    Section 8.13
    

    	 	
    Disclosure
    	 	 	82	 
	
    
    Section 8.14
    

    	 	
    Counterparts
    	 	 	83	 
	 
	
    Exhibit A — Form of Disbursement
    Application —Bank Loan
    	 	 	 	 

 

	 	 	 	 	 	 	 
	
    Exhibit B — Form of Certificate of
    Incumbency and Authority
    	 	 	 	 
	 
	
    Exhibit C — Form of Letter to
    Auditors
    	 	 	 	 
	 
	
    Schedule A — List of Material
    Agreements
    	 	 	 	 
	 
	
    Schedule B — Form of Compliance
    Certificate
    	 	 	 	 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	ARTICLE I — DEFINITIONS
	 	 	1	 
	 
	 	 	 	 	 	 	 	 
	Section 1.01
	 	Definitions	 	 	1	 
	Section 1.02
	 	Interpretation	 	 	32	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE II — REPRESENTATIONS AND WARRANTIES
	 	 	34	 
	 
	 	 	 	 	 	 	 	 
	Section 2.01
	 	Representations Regarding the Project	 	 	34	 
	Section 2.02
	 	Representations Regarding the Borrower	 	 	34	 
	Section 2.03
	 	Representations Regarding the Agreements	 	 	37	 
	Section 2.04
	 	Acknowledgement and Warranty	 	 	39	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE III — BANK LOAN
	 	 	40	 
	 
	 	 	 	 	 	 	 	 
	Section 3.01
	 	Amount and Currency	 	 	40	 
	Section 3.02
	 	Purpose	 	 	40	 
	Section 3.03
	 	Disbursements	 	 	40	 
	Section 3.04
	 	Suspension and Cancellation	 	 	41	 
	Section 3.05
	 	Charges and Commissions	 	 	42	 
	Section 3.06
	 	Interest	 	 	43	 
	Section 3.07
	 	Default Interest	 	 	44	 
	Section 3.08
	 	Repayment	 	 	45	 
	Section 3.09
	 	Mandatory Prepayment	 	 	46	 
	Section 3.10
	 	Voluntary Prepayment	 	 	49	 
	Section 3.11
	 	Payments	 	 	51	 
	Section 3.12
	 	Insufficient Payments	 	 	51	 
	Section 3.13
	 	Taxes	 	 	52	 
	Section 3.14
	 	Unwinding Costs	 	 	52	 
	Section 3.15
	 	Increased Costs	 	 	53	 
	Section 3.16
	 	Illegality	 	 	53	 
	Section 3.17
	 	Loan Account	 	 	54	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE IV — CONDITIONS PRECEDENT
	 	 	54	 
	 
	 	 	 	 	 	 	 	 
	Section 4.01
	 	Tranche I EDC Loan Disbursement	 	 	54	 
	Section 4.02
	 	First Tranche II EDC Loan Disbursement	 	 	58	 
	Section 4.03
	 	All Disbursements	 	 	59	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE V — AFFIRMATIVE COVENANTS
	 	 	60	 
	 
	 	 	 	 	 	 	 	 
	Section 5.01
	 	Project Implementation and Use of Proceeds	 	 	60	 
	Section 5.02
	 	Maintenance and Continuity of Business and Compliance with Obligations	 	 	60	 
	Section 5.03
	 	Environment, Health and Safety	 	 	60	 
	Section 5.04
	 	Insurance	 	 	61	 
	Section 5.05
	 	Accounting	 	 	61	 
	Section 5.06
	 	Continuing Governmental and Other Approvals	 	 	61	 

 

	 	 	 	 	 	 	 	 	 
	Section 5.07
	 	Security	 	 	61	 
	Section 5.08
	 	Taxes	 	 	63	 
	Section 5.09
	 	Project Agreements	 	 	64	 
	Section 5.10
	 	Financial Ratios	 	 	64	 
	Section 5.11
	 	Further Documents	 	 	65	 
	Section 5.12
	 	Costs and Expenses	 	 	65	 
	Section 5.13
	 	Furnishing of Information	 	 	66	 
	Section 5.14
	 	Procurement	 	 	69	 
	Section 5.15
	 	License Compliance	 	 	70	 
	Section 5.16
	 	Repayment of Existing Loans Indebtedness; Conditional Discharges	 	 	70	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE VI — NEGATIVE COVENANTS
	 	 	70	 
	 
	 	 	 	 	 	 	 	 
	Section 6.01
	 	Distributions	 	 	70	 
	Section 6.02
	 	Financial Debt	 	 	73	 
	Section 6.03
	 	Liens	 	 	74	 
	Section 6.04
	 	Derivative Transactions	 	 	74	 
	Section 6.05
	 	Arm's Length Transactions	 	 	75	 
	Section 6.06
	 	Profit-sharing and Management Arrangements	 	 	75	 
	Section 6.07
	 	Investments	 	 	75	 
	Section 6.08
	 	Project Agreements	 	 	76	 
	Section 6.09
	 	Changes in Business and Capital	 	 	76	 
	Section 6.10
	 	Prepayment of Long-term Debt	 	 	76	 
	Section 6.11
	 	Sale of Assets; Merger	 	 	76	 
	Section 6.12
	 	Shareholders Register	 	 	76	 
	Section 6.13
	 	Public Offering or Public Secondary Sale	 	 	77	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE VII — EVENTS OF DEFAULT
	 	 	77	 
	 
	 	 	 	 	 	 	 	 
	Section 7.01
	 	Events of Default	 	 	77	 
	Section 7.02
	 	Acceleration and Cancellation	 	 	79	 
	Section 7.03
	 	Disbursements Due on Demand	 	 	80	 
	Section 7.04
	 	Automatic Acceleration	 	 	80	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE VIII — MISCELLANEOUS
	 	 	80	 
	 
	 	 	 	 	 	 	 	 
	Section 8.01
	 	Term of Agreement	 	 	80	 
	Section 8.02
	 	Entire Agreement; Amendment and Waiver	 	 	80	 
	Section 8.03
	 	Notices	 	 	81	 
	Section 8.04
	 	English Language	 	 	83	 
	Section 8.05
	 	Financial Calculations	 	 	83	 
	Section 8.06
	 	Rights, Remedies and Waivers	 	 	84	 
	Section 8.07
	 	Indemnification	 	 	84	 
	Section 8.08
	 	Governing Law	 	 	86	 
	Section 8.09
	 	Arbitration and Jurisdiction	 	 	86	 
	Section 8.10
	 	Privileges and Immunities of EDC	 	 	87	 
	Section 8.11
	 	Waiver of Sovereign Immunity	 	 	87	 

ii

 

	 	 	 	 	 	 	 	 	 
	Section 8.12
	 	Successors and Assigns; Third Party Rights	 	 	87	 
	Section 8.13
	 	Disclosure	 	 	88	 
	Section 8.14
	 	Counterparts	 	 	89	 
	 
	 	 	 	 	 	 	 	 
	Exhibit A — Form of Disbursement Application -Bank Loan

	 
	 	 	 	 	 	 	 	 
	Exhibit B — Form of Certificate of Incumbency and Authority

	 
	 	 	 	 	 	 	 	 
	Exhibit C — Form of Letter to Auditors

	 
	 	 	 	 	 	 	 	 
	Schedule A — List of Material Agreements

	 
	 	 	 	 	 	 	 	 
	Schedule B — Form of Compliance Certificate

 

iii

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