Document:

<PAGE>

                                                                   EXHIBIT 10.25

             DATED                                           1999

                       PRIMUS TELECOMMUNICATIONS LIMITED
                                  as Borrower

                                    - and -

                                ERICSSON I.F.S.
                                   as Lender

                       ________________________________

                                 GBP 21,250,000
                             MULTI-CURRENCY CREDIT
                               FACILITY AGREEMENT
                       ________________________________

                                   EVERSHEDS
                              S O L I C I T O R S
                 International Banking and Finance Department
                    Senator House, 85 Queen Victoria Street
                                London EC4V 4JL
                  Tel: +44 20 7919 4500 Fax: +44 20 7919 4919
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     TABLE OF CONTENTS

CONTENTS

<TABLE>
<CAPTION>
Clause                                                                          Page
<S>                                                                             <C>
1.   DEFINITIONS AND INTERPRETATION...........................................     1
2.   THE FACILITY.............................................................     7
3.   PURPOSE..................................................................     7
4.   CONDITIONS PRECEDENT.....................................................     7
5.   AVAILABILITY OF THE FACILITY.............................................     7
6.   AVAILABILITY OF THE MULTI-CURRENCY OPTION................................     9
7.   AMOUNTS OF ADVANCES......................................................    10
8.   INTEREST PERIODS.........................................................    10
9.   INTEREST.................................................................    10
10.  ALTERNATIVE INTEREST RATES...............................................    11
11.  REPAYMENT................................................................    11
12.  PREPAYMENT...............................................................    12
13.  REPRESENTATIONS AND WARRANTIES...........................................    12
14.  COVENANTS................................................................    13
15.  EVENTS OF DEFAULT........................................................    17
16.  PAYMENTS.................................................................    20
17.  PAYMENT AND EXCHANGE RATE INDEMNITIES....................................    21
18.  CHANGES IN CIRCUMSTANCES, TERMINATION OF COMMITMENT AND INCREASED COSTS..    22
19.  SET-OFF..................................................................    23
20.  WAIVERS..................................................................    24
21.  COSTS AND EXPENSES.......................................................    24
22.  BENEFIT OF AGREEMENT AND TRANSFERS.......................................    24
23.  NOTICES..................................................................    25
24.  CONFIDENTIALITY..........................................................    25
25.  LAW......................................................................    26
THE FIRST SCHEDULE............................................................    27
THE SECOND SCHEDULE...........................................................    30
THE THIRD SCHEDULE............................................................    32
ANNEXURE A....................................................................    43
THE FOURTH SCHEDULE...........................................................    44
EXECUTION PAGE................................................................    46
</TABLE>
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MULTI-CURRENCY CREDIT FACILITY AGREEMENT

DATED:              1999

PARTIES:

(1)  PRIMUS TELECOMMUNICATIONS LIMITED as Borrower;

(2)  ERICSSON I.F.S. as Lender.

RECITALS:

(A)  Under the terms of the Supply Contract, the Borrower has agreed to
     purchase, and the Supplier has agreed to supply the Equipment, the Software
     and related services.

(B)  The Lender has agreed to provide finance to the Borrower in the maximum
     aggregate principal amount of the Facility Amount in order to assist the
     Borrower and the Primus Affiliates with certain of their respective payment
     obligations in relation to the Equipment and Software under Purchase Orders
     issued in accordance with the terms of the Supply Contract.

OPERATIVE TERMS:

1.   DEFINITIONS AND INTERPRETATION

1.1  Unless otherwise defined in this Agreement or the context otherwise
     requires, terms defined in the Supply Contract shall have the same meaning
     when used in this Agreement.

1.2  In this Agreement:

     "Advance" means an advance made by the Lender as referred to in Clause 5,
     being any amount up to the aggregate VAT exclusive amount due under all
     invoices specified in the Notice of Drawdown in respect of such Advance,
     (in each case as the same may from time to time be reduced by prepayment
     and/or repayment) made or to be made under this Agreement (together the
     "Advances");

     "Affiliate" of a company or corporate body means any company or corporate
     body:

     (i)    which is controlled, direct or indirectly, by the first mentioned
            company or corporate body; and/or

     (ii)   more than half the issued equity capital of which is beneficially
            owned, direct or indirectly, by the first mentioned company or
            corporate body; and/or

     (iii)  which is a Affiliate of another Affiliate of the first mentioned
            company or corporate body; and/or

     (iv)   unless the context otherwise requires, which is a subsidiary
            undertaking (within the meaning of section 21 of the Companies Act
            1989) of the first mentioned company or corporate body

     and, for these purposes, a company or corporate body will be treated as
     being controlled by another if that other company or corporate body is able
     to direct its affairs and/or to control the composition of its board of
     directors or equivalent body;

     "Affiliate Undertaking" means the guarantee indemnity and undertaking to be
     given by each Primus Affiliate in the form set out in the Third Schedule
     (or with such amendments to it as the Lender may agree);

     "Agreed Value" means, in relation to any Equipment, the full replacement
     value of such Equipment;

                                       1
<PAGE>

     "Agreement" means, at any point in time, this document as amended, varied,
     supplemented or novated up to that point in time;

     "Applicable Margin" means a rate of 5.8 per cent. per annum;

     "Applicable Schedule" means, in relation to each Advance, a schedule of
     payments in the form attached to the Notice of Drawdown for such Advance;

     "Available Facility"means, save as otherwise provided in this Agreement,
     the Commitment less (1) the Sterling Amount or the equivalent amount of an
     Optional Currency of each Advance which is then outstanding under this
     Agreement and (2) any amount which is due to be repaid on a Repayment Date;

     "Availability Period" means, subject to the terms of Clause 5.3, a period
     commencing on the date of this Agreement and terminating on the Termination
     Date;

     "Borrower" means Primus Telecommunications Limited, a company incorporated
     in England with registered number 02937312 and having its registered office
     at 4 Victoria Street, London SW1H 0NE (and includes its successors and
     permitted assigns and any person with whom it may amalgamate);

     "Charge" means:

     (i)    in respect of Equipment and Software to be purchased by the Borrower
            pursuant to a Purchase Order,  a fixed charge to be executed by the
            Borrower in relation to such Equipment and Software; and

     (ii)   in respect of Equipment and Software to be purchased by a Primus
            Affiliate pursuant to a Purchase Order, a security interest having
            the characteristics of a fixed charge (as that expression is
            understood under English law) in relation to such Equipment and
            Software,

     each to be in form and content satisfactory to the Lender (together the
     "Charges");

     "Commencement Date" means the 1 January, 1999, being the date for
     commencement of the third stage of EMU;

     "Commitment" means (Pounds)21,250,000 as such amount may be reduced,
     cancelled or terminated in accordance with the terms of this Agreement (or
     as otherwise may be agreed in writing between the Lender and the Borrower);

     "Disposition" means an assignment, novation or transfer of any or all of
     the Lender's rights or obligations or interest in, under and to this
     Agreement and/or any of the Documents;

     "Documents" means this Agreement, the Equipment Charge, the Charges, the
     Guarantee and any Affiliate Undertakings (each a "Document");

     "Drawdown Date" means, in relation to an Advance, the date upon which the
     Borrower has requested such Advance to be advanced to it pursuant to clause
     5 or (as the context requires) the date on which such Advance is actually
     advanced to the Borrower under this Agreement;

     "EMU" means economic and monetary union as contemplated by the Treaty;

     "EMU Legislation" means Council Regulation (EC) No 974/98 on the
     introduction of the euro and the other legislative measures of the Council
     of the European Union for the introduction and operation of the euro;

     "Equipment" means the items of Hardware and Software purchased by the
     Borrower pursuant to the Supply Contract;

     "Equipment Charge" means an equipment charge of even date with this
     Agreement and made between the Borrower and the Lender;

     "Ericsson Affiliate" means any Affiliate of Telefonaktiebolaget LM Ericsson
     from time to time;

                                       2
<PAGE>

     "Event of Default" means any of those events specified in Clause 15;

     "Facility" means the multi-currency credit facility granted to the Borrower
     in this Agreement;

     "Facility Amount" means the amount specified in Clause 2.2 (or the
     equivalent in an Optional Currency) (or as otherwise may be agreed in
     writing between the Lender and the Borrower);

     "Final Acceptance Date" means, in relation to each Purchase Order,  the
     date of Final Acceptance as calculated in accordance with the terms of
     Clause 21 of the Supply Contract;

     "Final Repayment Date" means, in relation to the Facility, the earlier of
     (i) the final Repayment Date in respect of the last Advance made in
     accordance with Clause 5.5 and (2) the date falling sixty months after the
     Termination Date;

     "Frame Agreement" means, the frame agreement dated on or about the date of
     this Agreement and made between the Supplier and the Borrower (as such
     frame agreement may be amended, varied, supplemented or novated from time
     to time);

     "Guarantee" means a guarantee of even date with this Agreement and made
     between the Guarantor and the Lender (in a form approved by the Lender);

     "Guarantor" means Primus Telecommunications Group Inc, a company
     incorporated in under the laws of the State of Delaware, USA, and having
     its principal place of business at 1700 Old Meadow Road, McLean, Virginia
     22102, U.S.A. (and includes its successors and permitted assigns and any
     person with whom it may amalgamate);

     "Hardware" means the Hardware as specified in the Purchase Order;

     "Interest Payment Date" means, in relation to an Advance, the date for
     payment of interest in respect of such Advance as referred to in Clause
     9.1;

     "Interest Period" means, save as otherwise provided in this Agreement, any
     of those periods mentioned in Clause 8.2;

     "Lender" means Ericsson I.F.S., a company incorporated in Ireland with
     registered number 150734 and having its registered office at International
     House, 3 Harbourmaster Place, IFSC, Dublin 1, Republic of Ireland (and
     includes its successors and permitted assigns and any person with whom it
     may amalgamate);

     "LIBOR" means the arithmetic mean (rounded up to the next higher one
     hundred thousandth of a percentage point) of the rate per annum of the
     offered quotations for deposits in the currency of the relevant Advance for
     a period equal or comparable to the relevant Interest Period in an amount
     comparable to the Advance:

     (i)   which appear on the page designated as page "LIBP" on the Reuters
           Monitor Money Rates Service as of 10.00 a.m. (London time) in the
           case of Sterling (or such other page as may be appropriate for the
           relevant Optional Currency) (or such other pages as may replace page
           LIBP or the relevant page for the relevant Optional Currency on that
           service); or

     (ii)  (in circumstances where fewer than two quotations appear on the LIBP
           page (or such other page as may be appropriate for the relevant
           Optional Currency) or there is no LIBP page (or such other page as
           may be appropriate for the relevant Optional Currency) for such date)
           which are offered by the Reference Banks (or, as the case may be,
           such of the Reference Banks as shall offer quotations) as of 10.00
           a.m. (London time);

     "Loan" means the aggregate principal amount for the time being outstanding
     under this Agreement;

     "Loss Date" shall have the meaning ascribed to it in Clause 14.4;

                                       3
<PAGE>

     "Maximum Amount" means the aggregate maximum amount to be advanced by the
     Lender in relation to each Purchase Order (being 85% of the Price
     (exclusive of VAT) payable under each such Purchase Order);

     "Notice of Drawdown" means a notice substantially in the form set out in
     the First Schedule or in such other form as may be acceptable to the Lender
     or as the Lender may require from time to time;

     "Optional Currency" means, subject to Clause 17, euros, Dollars and any
     other currency which is freely transferable and freely convertible into
     Sterling;

     "Original Sterling Amount" in relation to an Advance means:

     (i)    when such Advance came into existence as a result of a drawing under
            the Facility, the amount specified as such in the Notice of Drawdown
            relating thereto; and

     (ii)   when such Advance came into existence upon the consolidation of two
            or more Advances, the aggregate of the amounts specified as such in
            the Notices of Drawdown relating to each of the Advances so
            consolidated;

     "Participating Member State" means a state which adopts the euro in
     accordance with the Treaty;

     "Potential Event of Default" means any event which would become (with the
     passage of time, the giving of notice, the making of any determination
     under this Agreement or any combination thereof) an Event of Default;

     "Preliminary Payment" means the payment to be made by the Borrower (or, as
     appropriate, the relevant Primus Affiliate) of 15% of the Price under each
     Purchase Order in accordance with the terms of the Supply Contract;

     "Primus Affiliate" means any Affiliate of the Guarantor from time to time
     to whom the Borrower's rights and obligations under the Supply Contract or
     a Purchase Order have been novated, assigned or otherwise transferred;

     "Primus Notes" means the notes issued by the Guarantor (i) dated 30 July
     1997 in an amount up to $225 million due 2004 and bearing interest at the
     rate of 11 3/4%, (ii) dated 14 May 1998 in an amount up to $150 million due
     2008 and bearing interest at the rate of 9O%, and (iii) dated 29 January
     1999 in an amount up to $200 million due 2009 and bearing interest at the
     rate of 11 1/4% and all future notes and bonds issued by the Guarantor;

     "Purchase Order" means a Purchase Order entered into pursuant to the terms
     of the Supply Contract;

     "Quotation Date" in relation to any period for which an interest rate is to
     be determined under this Agreement means the day on which quotations would
     ordinarily be given by prime banks in the London Interbank Market for
     deposits in the currency in relation to which such rate is to be determined
     for delivery on the first day of that period provided that, if, for any
                                                  -------------
     such period, quotations would ordinarily be given on more than one date,
     the Quotation Date for that period shall be the last of those dates;

     "Reference Banks" means the principal London offices of Barclays Bank PLC,
     Lloyds Bank Plc and National Westminster Bank plc or such other bank or
     banks as may from time to time be agreed between the Lender and the
     Borrower;

     "Repayment Date" shall have the meaning ascribed to it in Clause 11.1;

     "Software" means the Software as specified in the Purchase Order;

     "Sterling Amount" means:

     (i)    in relation to an Advance, its Original Sterling Amount as reduced
            by the proportion (if any) of such Advance which has been prepaid
            and/or repaid; and

     (ii)   in relation to the Loan, the aggregate of the Sterling Amounts of
            the outstanding Advances;

                                       4
<PAGE>

     "Supplier" means Ericsson Limited, a company incorporated in England with
     company number 942215 and having its registered office at
     Telecommunications Centre, Ericsson Way, Burgess Hill, West Sussex RH15 9UB
     (and includes its successors and assigns and any person with whom it may
     amalgamate);

     "Supply Contract" means the supply contract dated 6 December 1996 and made
     between the Supplier and the Borrower, as amended and supplemented by the
     Frame Agreement (or otherwise as such supply contract may be amended,
     varied, supplemented or novated from time to time);

     "Termination Date" means the date falling two years after the date of this
     Agreement;

     "Total Loss" means, in relation to any Equipment, (i) its actual,
     constructive, compromised, arranged or agreed total loss; or (ii) its
     destruction, damage beyond repair or being rendered permanently unfit for
     normal use for any reason whatsoever;

     "Total Loss Date" means (i) in the case of an actual total loss or
     destruction, damage beyond repair, or being rendered permanently unfit, the
     date on which such loss, destruction, damage or rendition occurs; and (ii)
     in the case of a constructive, compromised, arranged or agreed total loss,
     whichever shall be the earlier of (a) the date being 30 days after the date
     on which notice claiming such total loss is issued to the insurers or
     brokers, and (b) the date on which such loss is agreed or compromised by
     the insurers,

     "Total Loss Proceeds" means the proceeds of any insurance, or any
     compensation or similar payment, arising in respect of a Total Loss.

     "Treaty" means the treaty establishing the European Community signed in
     Rome on 25th March 1957 as amended from time to time;

1.3  Any reference in this Agreement to:

     a "business day" shall be construed as a reference to a day (other than a
     Saturday or Sunday) on which banks are generally open for business in
     London and Dublin and, if such reference relates to the date for the
     payment or purchase of any amount denominated in:

     (a)  any Optional Currency (other than euros), in the principal financial
          centre of the country of such Optional Currency; or

     (b)  euros, in such other principal financial centre of any participating
          Member State as the Lender may nominate for the purpose and for the
          avoidance of doubt, in relation to a payment or rate fixing in euros,
          which is also a day on which the Trans European Automated Real-time
          Gross settlement Express Transfer System (TARGET) is operating;

     a "Clause" shall, subject to any contrary indication, be construed as a
     reference to a clause of this Agreement;

     a "currency" includes, without limitation, euros;

     an "encumbrance" shall be construed as a reference to any mortgage, pledge,
     lien, charge, equity, assignment by way of security, hypothecation,
     security interest and any other security arrangement and, if entered into
     for the purpose of raising borrowed money, any deferred purchase, title
     retention, financial lease, sale and repurchase or sale and lease-back
     arrangement and any royalty, over-riding royalty, net profits interest or
     production payment of any kind;

     "euro unit" means a euro as defined in the second sentence of Article 2 of
     Council Regulation (EC) No 974/98 on the introduction of the euro;

     "indebtedness" shall be construed so as to include any obligation (whether
     incurred as principal or as surety) for the payment or repayment of money,
     whether present or future, actual or contingent;

     "indebtedness for borrowed money" shall be construed so as to mean any
     indebtedness incurred in respect of:

     (a)  any moneys borrowed or raised under a credit or loan facility;

                                       5
<PAGE>

     (b)  any debenture, bond, note, loan stock or similar instrument (whether
          or not issued or raised for a cash consideration);

     (c)  amounts raised under any acceptance credit facility;

     (d)  amounts raised under any bill discounting or note purchase facility;

     (e)  any lease or hire purchase agreement entered into primarily as a
          method of raising finance or for financing the acquisition of the
          asset leased or hired;

     (f)  amounts raised under any other transaction having the commercial
          effect of a borrowing entered into by a person in order to enable such
          person (or, if such person is liable jointly or severally, with, or a
          surety for, any other person in respect of such indebtedness, such
          other person) to finance its operations or capital requirements but
          excluding any amounts owing for assets purchased or services obtained
          in the ordinary course of trading where the credit is provided on
          terms usual in the course of similar businesses and does not in any
          event exceed 60 days;

     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 calendar
     month save that, when any such period would otherwise end on a day which is
     not a business day, it shall end on the next business day, unless that day
     falls in the calendar month succeeding that in which it would otherwise
     have ended, in which case it shall end on the preceding business day
     provided that, if a period starts on the last business day in a calendar
     -------------
     month or if there is no numerically corresponding day in the month in which
     that period ends, that period shall end on the last business day in that
     later month (and references to "months" shall be construed accordingly);

     "national currency unit" means the unit of currency (other than the euro
     unit) of a Participating Member State;

     a "person" shall be construed as a reference to any person, firm, company,
     corporation, government, state or agency of a state or any association or
     partnership (whether or not having separate legal personality) of two or
     more of the foregoing;

     "repay" (or any derivative form thereof) shall, subject to any contrary
     indication, be construed to include "prepay" (or, as the case may be, the
     corresponding derivative form thereof);

     a "Schedule" shall, subject to any contrary indication, be construed as a
     reference to a schedule to this Agreement;

     a "subsidiary" means an entity from time to time of which a person has
     direct or indirect control, or owns directly or indirectly, more than fifty
     per cent. (50%) of the share capital or a similar right of ownership;

     "tax" or "taxes" shall be construed so as to include any tax, levy, impost,
     duty or other charge of a similar nature (including, without limitation,
     any penalty or interest payable in connection with any failure to pay or
     any delay in paying any of the same); and

     the "winding-up", "dissolution" or "administration" of a company shall be
     construed so as to include any equivalent or analogous proceedings under
     the law of the jurisdiction in which such company is incorporated or any
     jurisdiction in which such company carries on business.

1.4  "euro" and "euros" denotes the single currency of the Participating Member
     States introduced on the Commencement Date; "GBP", "Sterling" and
     "(Pounds)" denotes the lawful currency of the United Kingdom; "USD",
     "Dollars" and "$" denotes the lawful currency of the United States of
     America.

1.5  Any provision of this Agreement that is expressed to come into effect as
     from the Commencement Date shall, to the extent that it relates to the
     currency of a member state of the European Community which is not a
     Participating Member State on the Commencement Date, come into effect in
     relation to the currency as from the date on which that state becomes a
     Participating Member State.

1.6  The Lender and the Borrower may at any time agree so as to bind the
     Borrower and the Lender that any references in this Agreement to a business
     day, day-count fraction or other convention (whether for the

                                       6
<PAGE>

     calculation of interest, determination of payment dates or otherwise)
     shall, with effect from or after the Commencement Date, if different on
     account of implementation of EMU, be amended to comply with any generally
     accepted conventions and market practice from time to time applicable to
     euro denominated obligations in the London Interbank Market. The agreement
     of the Lender and the Borrower under this Clause 1.6 is not be unreasonably
     withheld or delayed.

1.7  Save where the contrary is indicated, any reference in this Agreement to:

     1.7.1  this Agreement or any other agreement or document shall be construed
            as a reference to this Agreement or, as the case may be, such other
            agreement or document as the same may have been, or may from time to
            time be, amended, varied, novated or supplemented;

     1.7.2  a statute shall be construed as a reference to such statute as the
            same may have been, or may from time to time be, amended or re-
            enacted; and

     1.7.3  a time of day shall be construed as a reference to London time.

1.8  Clause and Schedule headings are for ease of reference only.

2.   THE FACILITY

2.1  The Lender agrees to make available to the Borrower, upon the terms and
     subject to the conditions of this Agreement, a multi-currency credit
     facility of up to the Facility Amount or its equivalent from time to time
     in other Optional Currencies;

2.2  For the purpose of the definition of Facility Amount in Clause 1.2 the
     Sterling Amount is (Pounds)21,250,000.

3.   PURPOSE

3.1  The Facility is intended for the purpose of satisfying certain of the
     payment obligations of the Borrower (or, as appropriate, any Primus
     Affiliate) in respect of the Hardware and Software under Purchase Orders to
     be issued in accordance with the terms of the Supply Contract and,
     accordingly, the Borrower shall apply all amounts raised by it under this
     Agreement in or towards satisfaction of the respective payment obligations
     under each such Purchase Order.  In this connection, if a Primus Affiliate
     is obliged to make a payment under a Purchase Order then the Lender hereby
     consents to the Borrower making the proceeds of an Advance relating to such
     Purchase Order available to such Primus Affiliate so that such Primus
     Affiliate can comply with such payment obligation.

3.2  Without prejudice to the obligations of the Borrower under Clause 3.1, the
     Lender shall not be obliged to concern itself with the application of
     amounts raised by the Borrower under this Agreement.

4.   CONDITIONS PRECEDENT

4.1  The Lender will have no obligation under the Facility until it shall have
     received in form and content satisfactory to it (in its absolute
     discretion) all of the documents listed in Part A of the Second Schedule.

5.   AVAILABILITY OF THE FACILITY

5.1  Subject to the other terms of this Agreement, the Lender will make an
     Advance available to the Borrower in accordance with the following
     provisions of this Clause 5.

5.2  Once a Purchase Order has been executed by both the Supplier and the
     Borrower, the Borrower (or, as appropriate, the relevant Primus Affiliate
     if that Purchase Order has been novated by the Borrower to the relevant
     Primus Affiliate) will have an obligation to pay to the Supplier (or, as
     appropriate, the relevant Ericsson Affiliate if that Purchase Order has
     been novated by the Supplier to the relevant Ericsson Affiliate) the
     Preliminary Payment in accordance with the terms of the Supply Contract.

5.3  Once the Preliminary Payment has been paid to the Supplier (or, as
     appropriate, the relevant Ericsson Affiliate) the Borrower may request an
     Advance to be made by the Lender, provided that the following conditions
                                       -------------
     are fulfilled:

                                       7
<PAGE>

     5.3.1   by 10.00 a.m. (London time) on the seventh business day before the
             proposed date for the making of such Advance, the Lender has
             received from the Borrower a Notice of Drawdown (which shall be
             irrevocable) in relation to such Advance, receipt of which shall
             oblige the Borrower to borrow the amount requested in such Notice
             on the date stated in such Notice upon the terms and subject to the
             conditions contained in this Agreement;

     5.3.2   the proposed date for the making of such Advance is a business day
             during the Availability Period;

     5.3.3   the currency of the proposed Advance must be in Sterling or an
             Optional Currency;

     5.3.4   the proposed Original Sterling Amount of each Advance is (a) a
             minimum amount of (Pounds)250,000 or the equivalent amount of an
             Optional Currency and is less than the amount of the Available
             Facility or (b) equal to the amount of the Available Facility;

     5.3.5   the Advance cannot exceed the balance of the Price due under the
             Purchase Order in relation to which the Preliminary Payment has
             been made;

     5.3.6   the Lender has not determined that deposits in Sterling or in the
             applicable Optional Currency (after applying the provisions of
             Clause 6.2 as appropriate) of the amount of such Advance are not
             being offered to prime banks in the London Interbank Market (by
             reason of circumstances affecting the London Interbank Market
             generally) for the proposed duration of the first Interest Period
             of such Advance;

     5.3.7   either:

             5.3.7.1     no event has occurred which is an Event of Default or a
                         Potential Event of Default; and

             5.3.7.2     the representations set out in Clause 13 are true on
                         and as of the proposed date for the making of such
                         Advance

             or the Lender agrees (notwithstanding any matter mentioned at (a)
             or (b) above) to make such Advance available;

     5.3.8   the long term corporate credit rating of the Guarantor as published
             from time to time by Standard & Poors has not fallen below the
             level of CCC+;

     5.3.9   the Notice of Drawdown specifies the purpose to which the Advance
             is to be put and has attached to it copies of all relevant invoices
             issued to the Borrower or Primus Affiliates (as applicable) by the
             Supplier or Ericsson Affiliates (as appropriate) in respect of each
             Purchase Order specified in the Notice of Drawdown; and

     5.3.10  the Lender shall be satisfied that the Supplier (or, as
             appropriate, the relevant Ericsson Affiliate) has received the
             Preliminary Payment in respect of each Purchase Order specified in
             the Notice of Drawdown,

5.4  The Lender will have no obligation to make available an Advance unless and
     until:

     5.4.1   it shall have received from the Borrower the Applicable Schedule in
             respect of such Advance as duly accepted on behalf of the Borrower;
             and

     5.4.2   it shall have received in form and content satisfactory to it (in
             its absolute discretion):

             5.4.2.1     in the case of an Advance being made available in
                         connection with payment obligations of the Borrower
                         under a Purchase Order, all of the documents listed in
                         paragraph 1 of Part B of the Second Schedule; and

                                       8
<PAGE>

             5.4.2.2     in the case of an Advance being made available in
                         connection with payment obligations of a Primus
                         Affiliate under a Purchase Order, all of the documents
                         listed in paragraph 2 of Part B of the Second Schedule.

5.5  Subject to the terms of this Agreement (including, without limitation, the
     satisfaction of the Lender with the conditions set out in Clauses 5.3 and
     5.4), the Lender agrees that on the Drawdown Date in relation to each
     Advance, it will make available to the Borrower the amount of such Advance
     in the currency and in accordance with the Borrower's instructions as set
     out in the relevant Notice of Drawdown.

5.6  If and to the extent that the Facility has not been fully drawn by close of
     business on the Termination Date, the Available Facility shall then be
     immediately cancelled.

6.   AVAILABILITY OF THE MULTI-CURRENCY OPTION

6.1  The Borrower may in the Notice of Drawdown relating to any proposed Advance
     request that the relevant Advance be denominated in any Optional Currency
     provided that such Optional Currency is specified as the currency of
     -------------
     payment in the relevant Purchase Order.  Otherwise each Advance shall be
     denominated in Sterling.

6.2  If the Borrower requests that an Advance be denominated in an Optional
     Currency as provided in Clause 6.1 and:

     6.2.1  no later than 5.00 p.m. on the third business day preceding the
            first day of the first Interest Period in relation to such Advance,
            the Lender is notified that:

            6.2.1.1    (by reason of circumstances affecting the London
                       Interbank Market generally) such Optional Currency is not
                       available to it in the London Interbank Market; or

            6.2.1.2     (by reason of circumstances affecting the London
                        Interbank Market generally) that the rate at which such
                        deposits are available will not or does not accurately
                        reflect the cost to the Lender of making or funding such
                        Advance; or

            6.2.1.3     that it is contrary to any applicable law, regulation or
                        official directive (whether or not having the force of
                        law) for the Lender to fund such Advance in such
                        Optional Currency; or

     6.2.2  the Lender, no later than 11.00 a.m. on the Quotation Date for such
            Interest Period, notifies the Borrower that the Lender is of the
            opinion that, by reason of circumstances affecting the London
            Interbank Market generally, it is not feasible for such Advance to
            be made in such Optional Currency or, as the case may be,
            denominated in such Optional Currency during such Interest Period,

     then, the Lender will:

     6.2.3  (if possible) give the Borrower prior notice of the same; and

     6.2.4  use its reasonable endeavours to agree with the Borrower an
            alternative currency in which to make such Advance available and to
            obtain the agreement of the relevant Primus Affiliate to accept
            payment in such alternative currency,

     failing which such Advance shall be denominated in Sterling.

7.   AMOUNTS OF ADVANCES

7.1  The amount of an Advance during an Interest Period relating thereto (in
     determining which it shall be assumed that any part of such Advance falling
     to be repaid on or before the last day of the preceding Interest Period
     relating thereto is duly repaid) shall be the Sterling Amount of such
     Advance during such Interest Period or, if such Advance is to be
     denominated in an Optional Currency during such Interest Period, the amount
     of such Optional Currency which could be purchased with the Sterling Amount
     of such

                                       9
<PAGE>

      Advance at the spot rate of exchange quoted to the Lender at 11.00 a.m. on
      the Quotation Date for such Interest Period for the purchase of such
      Optional Currency with Sterling (in an amount equal to the original
      Sterling Amount of such Advance) for delivery two business days
      thereafter.

8.    INTEREST PERIODS

8.1   The period for which an Advance is outstanding will be divided into
      successive periods each of which (other than the first) will start on the
      day following the last day of the preceding such period.

8.2   The duration of each Interest Period shall, save as otherwise provided in
      this Agreement, be:

      8.2.1  in the case of the first Interest Period in relation to each
             Advance, the period commencing on the Drawdown Date in relation to
             such Advance and ending on the day before the Repayment Date next
             following the Drawdown Date in relation to such Advance; and

      8.2.2  in the case of each subsequent Interest Period in relation to each
             Advance, the period commencing on the preceding Repayment Date in
             relation to such Advance and ending on the day before the next
             Repayment Date in relation to such Advance,

      Provided that:
      -------------

             8.2.2.1   if such Advance to which such Interest Period relates is
                       denominated in a currency for which the Repayment Date is
                       not a business day, then the Repayment Date in relation
                       to such Advance shall be the immediately succeeding
                       business day for such currency; and

             8.2.2.2   the last Interest Period shall expire on the Final
                       Repayment Date in respect of such Advance.

9.    INTEREST

9.1   On each Interest Payment Date the Borrower shall pay accrued interest in
      arrears in respect of each Advance as calculated in accordance with the
      terms of Clause 9.2.  The first Interest Payment Date in relation to an
      Advance shall be the first Repayment Date next following the Drawdown Date
      in relation to such Advance and each subsequent Interest Payment Date in
      relation to such Advance shall be the next succeeding Repayment Date in
      relation to such Advance.

9.2   Subject to Clause 9.3, the rate of interest applicable to an Advance from
      time to time during an Interest Period relating to it shall be the rate
      per annum which is the sum of (a) the Applicable Margin and (b) LIBOR on
      the Quotation Date therefor.

9.3   If the Lender shall secure an export credit guarantee from EKN (the
      Swedish Export Credit Guarantee Board) in terms acceptable to the Lender
      (and the Lender shall use its reasonable endeavours to procure the same in
      respect of each Advance), then the rate per annum calculated in accordance
      with Clause 9.2 shall be reduced by 2.0 per cent. per annum provided that
                                                                  -------------
      such reduction shall only apply:

      9.3.1  for the duration of such EKN guarantee; and

      9.3.2  for that portion of the Loan the subject of such EKN guarantee.

9.4   The Lender shall notify the Borrower in writing as soon as reasonably
      practicable following the issue of a Notice of Drawdown as to whether an
      EKN guarantee shall apply to the proposed Advance.

10.   ALTERNATIVE INTEREST RATES

10.1  If, in relation to any Advance and any Interest Period relating thereto,:

      10.1.1  the Lender determines that at 11.00 a.m. on the Quotation Date for
              such Interest Period none of the Reference Banks was offering to
              prime banks in the London Interbank Market deposits

                                       10
<PAGE>

              in Sterling or in the applicable Optional Currency for the
              proposed duration of such Interest Period; and

      10.1.2  before the close of business in London on the Quotation Date for
              such Interest Period, the Lender, shall determine that by reason
              of circumstances affecting the London Interbank Market generally,
              adequate and reasonable means do not exist for ascertaining the
              interest rate applicable to such Interest Period

      then, notwithstanding the provisions of Clauses 8 and 9;

      10.1.3  the duration of that Interest Period shall be such period (being
              of a similar duration to the originally requested period as
              possible) as is selected by the Lender after consultation with the
              Borrower; and

      10.1.4  the rate of interest applicable to such Advance from time to time
              during such Interest Period shall be the rate per annum which is
              the sum of the Applicable Margin and the rate per annum notified
              to the Borrower on the Quotation Date for such Interest Period to
              be that which expresses as a percentage rate per annum the cost to
              the Lender of funding from whatever sources it may select such
              Advance during such Interest Period and the Lender agrees that it
              will ensure that such cost is the lowest cost of funding
              reasonably obtainable by it and not more than the cost to the
              Lender of funding at that time advances to other prime customers
              in the same currency and in the same amount as such Advance.

10.2  If (i) either of the events mentioned in Clauses 10.1.1 and 10.1.2 occurs
      or (ii) by reason of circumstances generally affecting the London
      Interbank Market during any period of three consecutive business days
      there are no deposits in Sterling or the applicable Optional Currency
      available to prime banks in the London Interbank Market, then:

      10.2.1  the Lender shall notify the Borrower of such event;

      10.2.2  if the Lender or the Borrower so require, within five business
              days of such notification, the Lender and the Borrower shall enter
              into negotiations with a view to agreeing a substitute basis (i)
              for determining the rates of interest from time to time applicable
              to the Advances and/or (ii) upon which the Advances may be
              maintained (whether in Sterling or some other currency) thereafter
              and any such substitute basis that is agreed shall take effect in
              accordance with its terms and be binding on each party to this
              Agreement; and

      10.2.3  if the Lender and the Borrower have failed to reach agreement in
              accordance with Clause 10.2.2 within fifteen business days from
              the date of the notice sent by the Lender to the Borrower pursuant
              to Clause 10.2.1 (or such longer period as the parties may agree
              in writing), then the rate of interest applicable to each Advance
              from time to time during an Interest Period relating thereto shall
              be the rate per annum which is the sum of the Applicable Margin at
              such time and the rate per annum which expresses as a percentage
              rate per annum the cost to the Lender of funding from whatever
              sources it may reasonably select such Advance during such Interest
              Period and the Lender agrees that it will ensure that such cost is
              the lowest cost of funding reasonably obtainable by it and not
              more than the cost to the Lender of funding at that time advances
              to other prime customers in the same currency and in the same
              amount as such Advance.

11.   REPAYMENT

11.1  The Borrower shall repay to the Lender the amount of each Advance by
      twenty equal consecutive quarterly instalments payable on 15 February, 15
      May, 15 August and 15 November in each year (each a "Repayment Date") as
      set out in the Applicable Schedule relating to such Advance, the first
      such instalment to be repayable on the first Repayment Date falling after
      the Drawdown Date in relation to such Advance. On the Final Repayment Date
      in respect of the last Advance outstanding under this Agreement, the
      Borrower shall additionally pay to the Lender all other amounts then
      outstanding or payable under this Agreement;

11.2  Amounts repaid under this Agreement may not be reborrowed.

                                       11
<PAGE>

12.   PREPAYMENT

12.1  The Borrower may prepay the whole or any part of any Advance on a
      Repayment Date provided that:
                     -------------

      12.1.1  the Lender shall have received from the Borrower not less than
              seven (7) days' irrevocable notice of its intention to make such
              prepayment and specifying the amount and date on which such
              prepayment is to be made;

      12.1.2  the amount of such partial prepayment shall not be less than
              (Pounds)100,000 or the balance of the Advance then outstanding (or
              the equivalent in an Optional Currency);

      12.1.3  each prepayment under this Agreement shall be made together with
              accrued interest on the amount prepaid and all other amounts
              payable on such repayment under the terms of this Agreement
              (including, without limitation, any sums due pursuant to the terms
              of Clause 18); and

      12.1.4  each partial prepayment under this Clause shall be applied (in
              inverse chronological order) against the repayment of the Advance
              or part thereof in accordance with Clause 11.

12.2  In circumstances where the rate of interest applicable to any Advance is
      being calculated in accordance with Clause 10.2.3, the Borrower may prepay
      the whole (but not part) of such Advance provided that:
                                               -------------

      12.2.1  the Lender shall have received from the Borrower irrevocable
              notice of its intention to make such prepayment within 15 business
              days from the date of the notice sent by the Lender to the
              Borrower pursuant to Clause 10.2.1 and specifying the amount and
              date on which such prepayment is to be made; and

      12.2.2  each such prepayment shall be made together with accrued interest
              on the amount prepaid and all other amounts payable on such
              repayment under the terms of this Agreement (including, without
              limitation, any sums due pursuant to the terms of Clause 17.2 or
              Clause 18).

12.3  The Borrower shall not prepay or repay all or any part of any Advance or
      the Loan except at the times and in the manner expressly provided for in
      this Agreement.

12.4  The Borrower shall prepay the Loan if all or any part of the Primus Notes
      are prepaid or redeemed prior to their scheduled maturity.

13.   REPRESENTATIONS AND WARRANTIES

13.1  The Borrower represents that:

      13.1.1  it is a company duly incorporated and validly existing under the
              laws of England and Wales and has the corporate power and
              authority to carry on its business as presently conducted and to
              perform its obligations under this Agreement and, so far as the
              Borrower is aware, is the holder of all necessary licences issued
              by all governmental authorities having jurisdiction to authorise
              or permit the Borrower to carry on its business as presently
              conducted and to operate the Equipment and to perform and comply
              with its obligations hereunder;

      13.1.2  neither the execution and delivery hereof nor the consummation of
              the transactions contemplated hereby nor compliance by the
              Borrower with any terms and provisions hereof will contravene any
              law applicable to the Borrower or result in any breach of, or
              constitute any default under, or result in the creation of any
              encumbrance upon any property or assets of the Borrower under any
              indenture, mortgage, chattel mortgage, conditional sales contract,
              bank loan or credit agreement, or other agreement or instrument to
              which the Borrower is a party or by which the Borrower or its
              property or assets may be bound or affected (other than the
              Charges and the Equipment Charge);

      13.1.3  the execution, performance and delivery by the Borrower of this
              Agreement have been duly authorised by all necessary corporate
              action on the part of the Borrower and, with respect to the
              execution and delivery of this Agreement the Borrower has obtained
              and complied with

                                       12
<PAGE>

             every necessary consent, licence, approval, order, or authorisation
             of, or registration with, or the giving of prior notice to, any
             government entity having jurisdiction all of which are valid and
             subsisting;

     13.1.4  this Agreement has been duly entered into and delivered by the
             Borrower and constitutes the valid, legal and binding obligation of
             the Borrower enforceable in accordance with its terms (except as
             limited to (a) equitable principles, and (b) bankruptcy,
             insolvency, reorganisation, moratorium or any laws affecting the
             rights of creditors generally), and the provisions hereof will not
             contravene any laws applicable to the Borrower which is in force or
             the memorandum or articles of association of the Borrower or result
             in any breach of, or constitute any default under or result in the
             creation of any encumbrance upon any property or assets of the
             Borrower under any indenture, mortgage, chattel mortgage,
             conditional sales contract, bank loan or credit agreement, or other
             agreement or instrument to which the Borrower is a party or by
             which the Borrower or its properties or assets may be bound or
             affected;

     13.1.5  the Borrower has taken all necessary action under the laws
             applicable to the Borrower in order to ensure the validity,
             effectiveness and enforceability of this Agreement;

     13.1.6  there are no suits or legal proceedings (including any
             administrative proceeding) instituted against the Borrower or, so
             far as the Borrower is aware, pending or threatened in writing
             before any court or administrative agency against the Borrower
             which, if adversely determined, would have a material adverse
             affect upon its financial condition or business or its ability to
             perform its obligations hereunder;

     13.1.7  the obligations of the Borrower under this Agreement are or will
             be, upon execution hereof by the Borrower, direct, general and
             unconditional obligations of the Borrower and rank or, as the case
             may be, will rank at least pari passu with all other present and
             future unsecured and unsubordinated external obligations (including
             contingent obligations) of the Borrower, with the exception of such
             obligations as are mandatorily preferred by law and not by reason
             of any encumbrance; and

     13.1.8  no Event of Default or Potential Event of Default has occurred and
             is continuing.

14.  COVENANTS

14.1 The Borrower hereby undertakes with the Lender that, from the date of this
     Agreement and for so long as the Loan or any other monies payable under
     this Agreement remain outstanding, it will:

     14.1.1  remain in and continue to operate substantially the same or similar
             business as presently engaged in (and so that the Borrower will not
             enter into any transaction or do anything which may result in a
             fundamental change in the nature or business of the Borrower),
             preserve its corporate existence and not make any change to its
             memorandum or articles of association which may have a material
             adverse effect on the Lender's rights or remedies hereunder;

     14.1.2  not without the prior written consent of the Lender (which may be
             withheld in the absolute discretion of the Lender) create or permit
             to subsist any encumbrance or any agreement to give an encumbrance
             in relation to the Equipment;

     14.1.3  notify the Lender immediately upon it becoming aware of the
             occurrence of any Event of Default or Potential Event of Default or
             of any occurrence or circumstance which gives rise to a breach of
             the Borrower's representations and warranties (whether or not
             constituting an Event of Default or Potential Event of Default) or
             the Borrower's undertakings under this Agreement;

     14.1.4  use all reasonable endeavours to obtain and maintain all necessary
             government and other consents, licences and permits in respect of
             which the Borrower is aware are necessary and take all action which
             the Borrower reasonably considers necessary for the continued due
             performance of the Borrower's obligations under this Agreement, or
             for the use and operation of the Equipment and in order for the
             Borrower (or as appropriate, each Primus Affiliate) to

                                       13
<PAGE>

             remain in and continue to operate substantially the same or similar
             business as presently engaged in;

     14.1.5  use all reasonable endeavours to avoid putting the Equipment, or
             procure that the Equipment is not put, into a position where the
             Borrower reasonably believes that it would be in material jeopardy
             provided that the Borrower shall not be in breach of the terms of
             -------- ----
             this Clause in relation to any action or matter carried out with
             the prior written consent of the Lender;

     14.1.6  take all necessary steps, or procure that all necessary steps are
             taken, to complete and file all registrations (of a regulatory
             nature) with relevant authorities in respect of the Equipment which
             the Borrower should reasonably be aware should be made in order to
             protect the interest of the Lender (including, without limitation,
             the execution and delivery by the Borrower (or, as appropriate,
             each Primus Affiliate) of a Charge in relation to such Equipment);

     14.1.7  not assign its rights or interests under any of the Documents to
             any person;

     14.1.8  keep accurate and complete records of the Equipment and permit the
             Lender and its authorised representatives to examine and take
             copies of such records at any time upon giving reasonable notice;

     14.1.9  not permit and procure that each Primus Affiliate does not permit
             the Equipment or any part thereof to be subject to penalty,
             forfeiture, seizure, arrest, impounding, detention, confiscations,
             taking in execution, appropriation or destruction nor abandon such
             Equipment or any part thereof;

     14.1.10 other than in the case of a dispute with a third party (except
             where such dispute poses a reasonable threat to the Lender's
             security), discharge and procure that each Primus Affiliate
             discharges all fees, charges and outgoings payable to any third
             party in relation to the use or operation of the Equipment or any
             premises where such Equipment is situated;

     14.1.11 not declare, pay or make any dividend or other distribution other
             than in the ordinary course of business;

     14.1.12 as soon as any notice is issued to prepay the Primus Notes (or if
             no notice is issued at the same time as any prepayment), notify the
             Lender of the amount of such prepayment;

14.2 Financial Information

     The Borrower shall:

     14.2.1  as soon as same become available but in any event within 30 days of
             the end of each quarterly accounting period to which they relate,
             deliver to the Lender copies of the quarterly management accounts
             (comprising profit and loss account, cashflow statement and balance
             sheet) of the Borrower;

     14.2.2  as soon as same become available but in any event within 120 days
             of the end of each of its financial years, deliver to the Lender
             copies of the audited financial statements (comprising profit and
             loss account, cashflow statement and balance sheet) of the
             Borrower;

14.3 Insurances

     From the date of this Agreement and for so long as the Loan or any other
     monies payable under any of the Documents remain outstanding, the Borrower
     shall (at its own expense) keep the Equipment or procure that the Equipment
     is kept fully insured in accordance with the terms of this Clause 14.3.
     Such insurances shall be as are normally maintained by prudent companies
     carrying on similar businesses and in form and substance reasonably
     satisfactory to the Lender through such brokers and with such prudent
     insurers as may be reasonably approved by the Lender and in a form of
     policy against all loss or damage to the Equipment (inclusive of fire,
     theft and accident) for the full replacement value of the Equipment and all
     liability to third parties, for bodily injury or damage to property arising
     in connection with the Equipment.

                                       14
<PAGE>

     14.3.1  The Borrower shall procure that:

             14.3.1.1  the Lender shall be a named additional assured and sole
                       loss payee in respect of each policy of insurance from
                       time to time effected pursuant to this Clause 14.3 in
                       respect of the amount of the loss relative to the
                       Equipment; and

             14.3.1.2  the amount equal to the full replacement value of the
                       Equipment shall be stated on the basis that the insurers
                       shall agree to waive any right of set-off in respect of
                       unpaid premiums and shall be adjusted by such amount as
                       the Borrower (after consultation with its insurance
                       advisers) considers appropriate if the insurers decline
                       to issue such a waiver.

     14.3.2  If any insurances or reinsurance required by this Clause 14.3 are
             effected by the Borrower directly with insurers or reinsurers and
             without the intermediary of brokers:

             14.3.2.1  the Borrower shall be entitled to satisfy its obligations
                       to supply evidence of such insurances or reinsurance to
                       the Lender by procuring the supply of such evidence from
                       the insurers or reinsurers, provided that such evidence
                                                   -------------
                       includes all the matters referred to in this Clause 14.3;
                       and

             14.3.2.2  references to brokers in this Clause 14.3 shall be
                       disregarded in relation to such insurances or
                       reinsurance.

     14.3.3  The Borrower shall comply (or procure the compliance) with all
             legal requirements as to insurance of the Equipment or any part
             thereof which may from time to time be imposed by the laws of the
             country in which any Equipment is installed and/or used insofar as
             they affect or concern the operation of the Equipment and, in
             particular, those requirements compliance with which is necessary
             to ensure that:

             14.3.3.1  the Equipment is not in danger of detention or
                       forfeiture;

             14.3.3.2  the insurances and reinsurances remain valid and in full
                       force and effect; and

             14.3.3.3  the interests of the Lender in the insurances and the
                       Equipment or any part thereof are not thereby prejudiced.

     14.3.4  If the Lender makes a Disposition to any other person or entity in
             accordance with the terms of Clause 22.1 hereof, then the Borrower
             shall (upon request and subject to the agreement of the insurers)
             procure that such person or entity shall be added as additional
             assured in any policy effected under this Clause 14.3, so as to
             enjoy the same rights and insurances enjoyed by the Lender under
             the insurance policy or policies and any amendments thereof.

     14.3.5  The Borrower shall not use the Equipment (and shall procure that
             the Equipment is not used) or cause or permit the same to be used
             for any purpose or in any manner not covered by any insurance, or
             for any purpose or in any manner which is contrary to any
             applicable law. The Borrower shall comply with the terms and
             conditions of each and every policy of insurance and shall not do,
             consent or agree to any act or omission which may invalidate or
             render unenforceable the whole or part of any such insurance.

     14.3.6  The Lender may from time to time require the Borrower (at the
             Borrower's expense) to effect such other insurances, or such
             variations to the terms of the existing insurances, as the Lender
             may by notice to the Borrower reasonably require in order fully to
             protect the interests of the Lender.

     14.3.7  The Borrower shall not without the prior written consent of the
             Lender maintain insurances or reinsurances with respect to the
             Equipment other than those required under this Clause 14.3.

                                       15
<PAGE>

     14.3.8  If the Lender wishes to revoke its approval of any insurer or
             insurers, then it shall consult with the Borrower and the Borrower
             and the Lender shall consider with the brokers to the Borrower for
             the time being approved by the Lender whether such insurance shall
             be changed to protect the interests of the parties insured. If the
             brokers consider that such insurance should be changed, the
             Borrower shall then arrange (with effect from the next annual
             renewal date of such insurances) alternative insurance cover
             reasonably satisfactory to the Lender and complying with this
             Clause 14.3.

     14.3.9  The Borrower shall provide the Lender with any information
             reasonably requested by the Lender from time to time (other than
             the amounts of premium paid or payable) concerning the insurances
             or reinsurance maintained with respect to the Equipment (and any
             part of it).

     14.3.10 If at any time the Borrower fails to maintain insurances in
             compliance with any provision of this Clause 14.3, the Lender shall
             be entitled but not bound (without prejudice to any other rights
             which it may have or acquire under this Agreement by reason of such
             failure) to pay any premiums due or to effect or maintain
             insurances satisfactory to the Lender or otherwise remedy such
             failure in such manner as the Lender considers appropriate (and the
             Borrower shall immediately reimburse the Lender in full for any
             amount so expended).

     14.3.11 The Borrower shall furnish to the Lender:

             14.3.11.1   on reasonable request and at subsequent renewals prior
                         to each of the renewal dates, executed copies of
                         endorsements evidencing the insurance required to be
                         maintained pursuant to this Clause 14.3;

             14.3.11.2   on request, evidence of any insurance required
                         hereunder; and

             14.3.11.3   on request, evidence of payment of premium or premium
                         instalment due in respect of such insurances.

14.4 Total Loss

     If in respect of Equipment a Total Loss occurs, then without prejudice to
     the continuing obligations of the Borrower under this Agreement the Lender
     and the Borrower shall proceed diligently and co-operate fully with each
     other in the recovery of the Total Loss Proceeds.

     14.4.1  On the date (the "Loss Date") which shall be the earlier of the
             following dates:

             14.4.1.1    the date on which the Total Loss Proceeds in respect of
                         such Equipment are received by the Lender; and

             14.4.1.2    45 days after the Total Loss Date,

             the Borrower shall pay to the Lender an amount (the "Total Loss
             Amount") notified by the Lender to the Borrower, being the amount
             equal to (a) the Agreed Value (calculated as at the Total Loss
             Date) less (b) an amount equal to any Total Loss Proceeds received
             by the Lender by the Loss Date.

     14.4.2  The Lender shall apply the Total Loss Proceeds and the Total Loss
             Amount pursuant to Clause 14.4 in discharge of any amounts accrued
             but unpaid under the Documents.

14.5 Other Loss or Damage

     If any Equipment or any part thereof suffers loss or damage not
     constituting a Total Loss of such Equipment, all the obligations of the
     Borrower under this Agreement shall continue in full force, and the
     Borrower shall at the Borrower's expense promptly procure the repair of
     such damaged Equipment.  So long as no Event of Default has occurred and is
     continuing, any insurance proceeds:

                                       16
<PAGE>

     14.5.1  received by the Lender which exceed (Pounds)100,000 or its
             equivalent in an Optional Currency shall, at the election of the
             Borrower, be applied by the Lender either in direct payment of the
             cost of such repair or in reimbursement of the Borrower for the
             cost of such repair; and

     14.5.2  equal to or less than (Pounds)100,000 or its equivalent shall be
             paid to the Borrower and the Borrower shall apply the same at its
             election as aforesaid.

15.  EVENTS OF DEFAULT

15.1 If:

     15.1.1  the Borrower fails to pay any amount due from it under this
             Agreement within three (3) business days of the due date (in the
             currency and in the manner specified in this Agreement) or the
             Guarantor fails to pay any amount due from it under the Guarantee
             at the time (in the manner and in the currency specified in the
             Guarantee); or

     15.1.2  the Borrower fails to perform any material obligation expressed to
             be assumed by it under Clause 14; or

     15.1.3  the Borrower fails duly to perform any other term or condition of
             this Agreement or the other Documents or the Guarantor fails duly
             to perform any term or condition of the Guarantee or any Primus
             Affiliate fails duly to perform any term or condition of an
             Affiliate Undertaking which breach, if (in the Lender's opinion)
             capable of remedy, has not been remedied within fourteen (14) days
             of the Lender's notification of such failure to the Borrower; or

     15.1.4  any representation or warranty made by the Borrower contained in
             this Agreement, or made by the Guarantor contained in the
             Guarantee, or made by any Primus Affiliate contained in any
             Affiliate Undertaking, is untrue or incorrect when made and which
             would have a material adverse effect on the ability of the Borrower
             or the Guarantor or any Primus Affiliate to perform its obligations
             under this Agreement or the Guarantee or any Affiliate Undertaking
             (as the case may be) in any material respect when such event
             occurs; or

     15.1.5  the Borrower is unable to or shall admit inability to pay its debts
             as they fall due or ceases or threatens to cease to carry on
             business; or

     15.1.6  dissolution or any similar proceeding shall be instituted by or
             against the Borrower or if a petition is presented and served for
             the liquidation of the Borrower (save for a petition for the
             liquidation of the Borrower which is discharged, withdrawn or
             compromised within ten (10) business days of its service or in
             respect of which an order is granted restraining advertisement
             within seven (7) business days of its service) or if the Borrower
             enters into compulsory or voluntary liquidation (not being
             voluntary liquidation for the purposes of reconstruction or
             amalgamation on terms which have been previously approved by the
             Lender in writing, such approval not to be unreasonably withheld or
             delayed); or

     15.1.7  a receiver, administrator, administrative receiver or receiver and
             manager or trustee or similar officer is appointed in respect of
             the Borrower or any part of its assets; or

     15.1.8  the Borrower has any distress for rent or other seizure under
             execution or other legal process made in respect of its assets and
             such distress, seizure or other legal process is not discharged or
             paid out within thirty (30) days; or

     15.1.9  the Borrower or an Primus Affiliate shall do, cause to be done or
             permit to suffer any act or thing whereby the Lender's rights in
             the Equipment are prejudiced or put in material risk of jeopardy,
             in either case, to an extent which materially affects the Lender's
             rights in the Equipment; or

     15.1.10 any indebtedness or obligations of the Borrower for the repayment
             of any borrowed monies in excess of (Pounds)100,000 becomes due and
             payable prior to the specified maturity date thereof and is not
             paid within fifteen (15) days of becoming due or otherwise resolved
             with such creditor and such default shall continue for fifteen (15)
             days after the Lender shall have given

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             the Borrower written notice specifying such default and demanding
             the same to be remedied; or

     15.1.11 any security created by any encumbrance created by the Borrower
             where the amount secured is (Pounds)100,000 or more becomes
             enforceable and either:

             15.1.11.1   the indebtedness is not paid or is not otherwise
                         resolved with the beneficiary of the encumbrance within
                         fifteen (15) days of such indebtedness becoming
                         enforceable (whether or not such beneficiary takes
                         steps to enforce the same) and such default continues
                         for fifteen (15) days after the Lender shall have given
                         the Borrower written notice specifying such default and
                         demanding the same to be remedied; or

             15.1.11.2   the beneficiary of such encumbrance takes steps to
                         enforce such encumbrance; or

     15.1.12 the Equipment shall become encumbered by any encumbrances (save for
             encumbrances created in favour of the Lender) or if the Equipment
             is distrained against or otherwise seized under execution or other
             legal process and not discharged or paid within 48 hours of the
             distress being levied;

     15.1.13 any other event should occur which would have a material adverse
             effect on the ability of the Borrower, the Guarantor or any Primus
             Affiliate to perform its obligations and such event shall continue
             for fourteen (14) days after the Lender has given the Borrower
             written notice specifying the event and demanding the same to be
             remedied;

     15.1.14 any event occurs under the laws of the country of incorporation of
             any Primus Affiliate which has an analogous or equivalent effect to
             any of the events specified in Clauses 15.1.5 to 15.1.12;

     15.1.15 either the Borrower or any Primus Affiliate which owns or uses any
             of the Equipment ceases to be a subsidiary of the Guarantor;

     15.1.16 in respect of the Guarantor, a Change of Control occurs. For the
             purpose of this Event of Default, the expression "Change of
             Control" shall mean such time as:

             15.1.16.1   a "person" or "group" (within the meaning of Sections
                         13(d) and 14(d)(2) of the US Exchange Act) becomes the
                         ultimate "beneficial owner" (as defined in Rule 13d-3
                         under the US Exchange Act) of more than 50% of the
                         total voting power of the then outstanding shares or
                         other securities of the Guarantor (on a fully diluted
                         basis) which ordinarily entitle the holders thereof to
                         voting rights;

             15.1.16.2   individuals who at the beginning of any period of two
                         consecutive calendar years constituted the board of
                         directors (together with any directors who are members
                         of the board of directors then still in office who
                         either were members of the board of directors at the
                         beginning of such period or whose election or
                         nomination for election was previously so approved)
                         cease for any reason to constitute a majority of the
                         members of such board of directors then in office;

             15.1.16.3   the sale, lease, transfer, conveyance or other
                         disposition (other than by way of merger or
                         consolidation), in one or a series of related
                         transactions, of all or substantially all of the assets
                         of the Guarantor and its subsidiaries taken as a whole
                         to any such "person" or "group" (other than to the
                         Guarantor, the Borrower or any Primus Affiliate);

             15.1.16.4   the merger or consolidation of the Guarantor with or
                         into any corporation or the merger of another
                         corporation with or into the Guarantor with the effect
                         that immediately after such transaction any such
                         "person" or "group" or persons or entities shall have
                         become the beneficial owner of securities of the
                         surviving corporation of such merger or consolidation
                         representing a majority of the total

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                         voting power of the then outstanding shares or other
                         securities of the surviving corporation which
                         ordinarily entitle the holders thereof to voting
                         rights; or

             15.1.16.5   the adoption of a plan relating to the liquidation or
                         dissolution of the Guarantor.

     15.1.17 the Borrower or any Primus Affiliate hereafter borrows monies or
             incurs any indebtedness (which shall exclude any indebtedness
             incurred in the ordinary course of business on arms length terms)
             from the Guarantor or any Affiliate of the Guarantor on terms that
             the principal sum borrowed or indebtedness incurred is repayable or
             payable or any interest is payable in priority to or is not
             subordinated to any amounts due to the Lender by the Borrower under
             this Agreement;

     15.1.18 payment demand is made for or the Borrower repays any moneys
             borrowed from or indebtedness due to or the Borrower pays any other
             moneys or liabilities (including interest on borrowings) to the
             Guarantor or any Affiliate of the Guarantor (other than payments or
             demands in the ordinary course of business on arms length terms);

     15.1.19 the Borrower or any Primus Affiliate declares or pays any dividend
             or makes any distribution to its members (including on a reduction
             of capital) other than in the ordinary course of business;

     15.1.20 any event shall occur which may reasonably be expected to be
             materially detrimental to the Lender's right or ability to enforce
             or recover or realise the security for the Borrower's obligations
             hereunder granted to the Lender under any of the Documents;

     15.1.21 any government or other consent, license or permit required for the
             Borrower (or as appropriate, any Primus Affiliate) to remain in and
             continue to operate substantially in the same business as it is
             presently engaged in is revoked or otherwise cancelled and which
             would materially adversely affect the ability of the Borrower (or,
             as appropriate, the relevant Primus Affiliate) to make payment of
             any amount due from any of them under any of the Documents to which
             they are a party;

     15.1.22 any of the Documents ceases to be in full force and effect or
             ceases to be legal, valid and binding in accordance with its terms;

     15.1.23 at any time it is or becomes unlawful for any of the Borrower, the
             Guarantor or any Primus Affiliate to perform or comply with any or
             all of its obligations under any of the Documents to which it is a
             party;

     15.1.24 the Borrower repudiates this Agreement or does or causes to be done
             any act or thing evidencing an intention to repudiate this
             Agreement;

     15.1.25 any circumstances arise which give reasonable grounds in the
             opinion of the Lender to the belief that any of the Borrower, the
             Guarantor or any Primus Affiliate may not (or may be unable to)
             perform or comply with its obligations under any Document to which
             it is a party;

     15.1.26 there shall, in the reasonable opinion of the Lender, occur any
             circumstance or any material adverse change in the business, assets
             or conditions of the Borrower or the Guarantor from that existing
             at the date of this Agreement which has, or is reasonably likely to
             have, a material adverse effect on the financial condition of the
             Borrower or, as the case may be, the Guarantor or imperil, delay or
             prevent fulfilment by the Borrower or, as the case may be, the
             Guarantor of their respective obligations under, or as contemplated
             by, the Documents to which either is a party;

     15.1.27 any amount under the Primus Notes is not paid when due or becomes
             (or would with the giving of notice or lapse of time become) due
             and payable prior to the date when it would otherwise have become
             due;

     then, and in any such case and at any time thereafter, the Lender may by
     written notice to the Borrower:

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<PAGE>

               15.1.27.1 declare the Advances to be immediately due and payable
                         (whereupon the same shall become so payable together
                         with accrued interest thereon and any other amounts
                         then owed by the Borrower hereunder) or declare the
                         Advances to be due and payable on demand of the Lender;
                         and/or

               15.1.27.2 declare that any undrawn portion of the Facility shall
                         be cancelled, whereupon the same shall be cancelled and
                         the Available Facility shall be reduced to zero.

15.2 If, pursuant to Clause 15.1, the Lender declares the Advances to be due and
     payable on demand of the Lender, then, and at any time thereafter, the
     Lender may by written notice to the Borrower:

     15.2.1    call for repayment of the Advances on such date as it may specify
               in such notice (whereupon the same shall become due and payable
               on such date together with accrued interest thereon and any other
               sums then owed by the Borrower under this Agreement) or withdraw
               its declaration with effect from such date as it may specify in
               such notice; and/or

     15.2.2    select as the duration of any Interest Period which begins whilst
               such declaration remains in effect a period of six months or
               less.

16.  PAYMENTS

16.1 All payments of whatsoever nature due to be made under or in connection
     with this Agreement shall be made to the Lender in the currency in which
     the funds were advanced or are due in immediately available funds by such
     time during normal banking hours in a financial centre of the country whose
     lawful currency that currency is (in the case of euros, in the principal
     financial centre of such of  the Participating Member States) or London or
     as the Lender may reasonably specify, on the due date, to such account in
     the name of the Lender as it shall previously have specified to the
     Borrower.

16.2 Subject to the other provisions of this Agreement, if any amount becomes
     due for payment under this Agreement on a day which is not a business day,
     such payment shall be made on the next succeeding business day and interest
     and other periodic payments shall be increased accordingly.

16.3 All interest under this Agreement shall accrue from day to day as well
     after as before any demand therefor, judgment or the winding up or similar
     process of the obligor, and shall be calculated by reference to the number
     of days elapsed and (i) in the case of Sterling, a year of 365 days or (ii)
     in the case of any other Optional Currency, 360 days (unless otherwise
     customary in the relevant Euro-currency market).

16.4 All payments due under this Agreement shall, unless the law or any
     regulation otherwise requires or in the case of manifest error, be paid in
     full without set-off or counter-claim and free and clear of and without any
     deduction or withholding or payment for or on account of any taxes (other
     than taxes on the overall net income of the payee).  If the Borrower is
     required by any law or regulation to make any deduction or withholding from
     any amount payable by it under this Agreement the Borrower shall promptly
     notify the Lender and (subject to Clause 18.3) the amount payable by the
     Borrower in respect of which such deduction or withholding is required to
     be made shall be increased to the extent necessary to ensure that, after
     the making of such deduction or withholding, the Lender to whom it is made
     receives and is beneficially entitled to, free from any such deduction or
     withholding, a net amount equal to the amount which it would have received
     and been so entitled to had no such deduction or withholding been made.

16.5 If the Lender has received a tax benefit by reason of any deduction or
     withholding in respect of which the Borrower has made an increased payment
     under Clause 16.4 and provided the Lender has received all amounts which
     are then due and payable by the Borrower under any of the provisions of
     this Agreement, the Lender shall pay to the Borrower upon utilisation of
     the tax benefit to secure a saving of tax that would otherwise have been
     payable (to the extent that the Lender can do so without prejudicing the
     amount of that tax benefit and the right of the Lender to obtain or utilise
     any other benefit relief or allowance which may be available to it) such
     amount, if any, as the Lender shall determine will leave the Lender in no
     better and no worse position than the Lender would have been if the
     deduction or withholding had been required.

16.6 The Lender shall maintain in its books a control account in which shall be
     recorded (i) the amount of any Advance made or arising under this
     Agreement, (ii) the amount of all principal, interest and other amounts

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      due or to become due under or in connection with this Agreement from the
      Borrower to the Lender and (iii) the amount received or recovered by the
      Lender under or in connection with this Agreement.

16.7  In any cause of action or proceedings arising out of or in connection with
      this Agreement the entries made in the account maintained pursuant to
      Clause 16.6 shall be prima facie evidence of the existence and amount of
      the obligations recorded in such accounts and a certificate as to any such
      entry of the Lender shall, in the absence of manifest error, be prima
      facie evidence in respect thereof.

16.8  If more than one currency or currency unit are at the same time recognised
      by any country as the lawful currency of that country (other than as a
      result of the introduction of the euro by a participating member state),
      then:

      16.8.1  any reference in this Agreement to, and any obligations arising
              under this Agreement in, the currency of that country shall be
              translated into, or paid in, the currency or currency unit of that
              country designated by the Lender; and

      16.8.2  any translation from one currency or currency unit to another
              shall be at the official rate of exchange recognised by the
              central bank for the conversion of that currency or currency unit
              into the other, rounded up or down by the Lender acting
              reasonably.

16.9  If a change in any currency of a country occurs (other than as a result of
      the introduction of the euro by a participating member state), this
      Agreement will be amended to the extent the Lender acting reasonably and
      in good faith determines is necessary to reflect the change in currency
      and to put the Borrower and the Lender in the same position, so far as
      possible, that they would have been in if no change in currency had
      occurred.

16.10 If and to the extent that any EMU Legislation provides that an amount
      denominated either in the euro or in the national currency unit of a given
      Participating Member State and payable within that Participating Member
      State by crediting an account of the creditor can be paid by the debtor
      either in the euro unit or in that national currency unit, the relevant
      person shall be entitled to pay that amount either in the euro unit or in
      the national currency unit.

17.  PAYMENT AND EXCHANGE RATE INDEMNITIES

17.1  Without prejudice to the other provisions of this Agreement, if the
      Borrower fails to pay when due any amount due or to become due under this
      Agreement (whether of principal, interest or otherwise and including any
      amounts which fall due under this Clause), it shall, from the date when
      such amount fell due, pay interest on the unpaid amount up to the date of
      actual receipt of payment by the payee, as well after as before judgment,
      or its winding-up or similar process, at the rate which is two per cent.
      per annum plus the arithmetic mean (rounded up, if necessary, to the
      nearest whole multiple of one-sixteenth per cent.) of the rates notified
      to the Borrower by the Lender to be that at which deposits of the amount
      of the unpaid amount, and for such period not exceeding three months as
      the Lender may select, are offered by prime banks to the Lender in the
      London Interbank Market at or about 11.00 a.m. (London time) on the second
      business day before the start of the period in question. Such interest
      shall be payable at the end of each period selected as aforesaid and so
      long as the amount remains unpaid the resultant interest shall be
      compounded at the end of such period and interest shall continue to be
      calculated on the same basis at the end of each succeeding period as
      aforesaid.

17.2  If any Advance or any part thereof is, for any reason whatsoever
      (including, without limitation, pursuant to Clause 12.1 but excluding a
      pre-payment pursuant to Clause 12.2 and a repayment pursuant to Clause
      18.1), paid to the Lender on a day which is not its original maturity or
      if, following receipt of a Notice of Drawdown under Clause 5.1, a proposed
      Advance is not made for whatever reason (except for the fault of
      Ericsson), the Borrower will pay the Lender on request such amounts as may
      be necessary to compensate the Lender (as certified by the Lender together
      with reasonable evidence of the calculation of such amount) for any loss
      or premium or penalty incurred by it in respect of the liquidation or re-
      employment of funds allocated or borrowed for the purpose of maintaining
      that Advance (including, if appropriate, such amounts as are necessary to
      compensate the Lender for closing out all or part of any related hedging
      arrangements).

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17.3   If under any applicable law and whether pursuant to a judgment being made
       or registered against any party to this Agreement or its liquidation,
       insolvency or analogous process or for any other reason, any payment due
       under or in connection with this Agreement is made or falls to be
       satisfied in a currency (an "alternative currency") different from that
       in which the payment due is expressed to be payable (the "required
       currency"), then to the extent that the payment actually received by the
       party entitled to it falls short of the amount expressed to be payable
       under the terms of this Agreement (when converted into the required
       currency at the rate of exchange ruling (i) on the date of payment or if
       that is not practicable, as soon thereafter as is practicable, or (ii) in
       the case of liquidation, insolvency or analogous process of a party to
       this Agreement at the rate of exchange on the latest date permitted by
       applicable law for the determination of liabilities in such liquidation,
       insolvency or analogous process), the payer shall indemnify and hold
       harmless the party entitled thereto against the amount of such shortfall.
       For these purposes "rate of exchange" means the rate at which the party
       entitled to the payment under this Agreement is able on the relevant date
       to purchase the required currency with the alternative currency, and
       shall take into account any premium and other costs of exchange.

17.4   The indemnity in Clause 17.3 shall constitute a separate and independent
       obligation of the party obliged to make the payment from its other
       obligations under this Agreement and shall give rise to a separate and
       independent cause of action against the party obliged to make the
       payment. Any such deficiency as aforesaid shall be deemed to constitute a
       loss suffered by the relevant party and the party claiming under this
       Agreement shall make available to the party obliged to make the payment
       calculations as to how such loss has been computed.

       17.5   If the Lender at any time determines that:

       17.5.1 for reasons affecting the market in euros generally, euros are not
              freely available in the international Interbank market;

       17.5.2 the euro has ceased to be utilised as the basic accounting unit of
              the European Economic Communities;

       17.5.3 the euro has ceased to be used in the European Monetary System; or

       17.5.4 it is illegal, impossible or impracticable for payments to be made
              under this Agreement in euros.

       then, the Lender may, in its discretion, but after consultation with the
       Borrower, declare (such declaration to be binding on all the parties
       hereto) that the repayment of any Advance denominated in euro and any
       payment of interest thereon that is due and unpaid at the time of, or
       becomes due after, such declaration shall be made in a specified
       component currency, in which case the amount so to be paid in such
       component currency shall be computed on the basis of the equivalent of
       the euro in such component currency determined in accordance with the
       provisions of Council Regulation (EC) no 3320/94 of the 22nd December,
       1994 (as amended from time to time) and the rates to be used shall be the
       Lender's rates for the purchase in the London foreign exchange market of
       the replacement currency with each of the components at or about 11.00
       a.m. two business days before the day the relevant payment in the
       replacement currency is due.

18.    CHANGES IN CIRCUMSTANCES, TERMINATION OF COMMITMENT AND INCREASED COSTS

18.1   If any change in applicable law or regulation or in the interpretation
       thereof makes it unlawful in any jurisdiction for the Borrower to perform
       its obligations under this Agreement with regard to the Lender or for the
       Lender to make or fund or maintain the Advances or otherwise to give
       effect to its obligations contemplated by this Agreement in respect of
       the Facility, then (i) the Lender shall be discharged from all
       obligations to make or maintain Advances and (ii) the Borrower shall
       (subject to Clause 18.3) as soon as possible but in any event within
       thirty business days of demand pay to the Lender without premium or
       penalty the outstanding principal amount of the Loan together with
       accrued interest and any other amount expressed to be payable to the
       Lender under or in accordance with the terms of this Agreement.

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<PAGE>

18.2 The Borrower shall (subject to Clause 18.3) from time to time immediately
     on demand pay to the Lender such amounts as the Lender may reasonably
     determine are sufficient to indemnify it against the cost to it, by reason
     of its continuing to perform its obligations under this Agreement, of
     complying with the provisions of any new or amended law or regulation or of
     any request from or requirement (whether or not having the force of law) of
     any central bank or other fiscal, monetary or other authority (including
     any relating to taxation, reserve asset, special deposit, cash ratio,
     liquidity or capital adequacy requirements or any other form of banking or
     monetary control) or any change in the interpretation or administration of
     such laws or regulations or request or requirement when taken in
     conjunction with the performance of its obligations to the Borrower under
     this Agreement provided that any such change applies generally to lending
                    -------------
     institutions and not solely to the Lender.  Any determination by the Lender
     of such cost shall, in the absence of manifest error, be conclusive and
     binding upon the Borrower for the purposes of this Agreement.

     For the purposes of this Clause, the word "cost" shall be deemed to include
     (but without limitation):

               18.2.1.1  the cost of making, funding or maintaining all or any
                         of a class of obligations which include the obligations
                         undertaken or to be undertaken by the Lender under this
                         Agreement;

               18.2.1.2  any payment (not being a payment on the Lender's
                         overall net income) on or calculated by reference to
                         obligations of a class or kind including the Lender's
                         obligations under this Agreement;

               18.2.1.3  any deposit or restriction on lending relating or
                         proportional to any class or kind of obligations which
                         include the obligations undertaken or to be undertaken
                         by the Lender under this Agreement;

               18.2.1.4  any reduction in the Lender's income by reason of any
                         of the foregoing to the extent that the same may be
                         attributable to or in proportion to the Lender's
                         obligations under this Agreement.

18.3 If any circumstances arise by reason of which the Borrower is obliged to
     make any increased payment or the Lender is entitled to make any claim
     under any of Clauses 16.4, 18.1 or 18.2 then, without in any way limiting,
     reducing or otherwise qualifying the Borrower's obligations or the rights
     of the Lender under any of those Clauses upon becoming aware of the same
     the Lender shall, in consultation with the Borrower and to the extent that
     it can do so without prejudice to its own position, take reasonable steps
     to mitigate such effects on the Borrower of such circumstances including
     the filing of any return, claim, declaration or similar document or the
     transfer of its rights and obligations to another financial institution in
     a manner which will avoid the circumstances in question or of its lending
     office to another jurisdiction in a manner which will avoid the
     circumstances in question and on terms mutually acceptable to the Borrower
     and the Lender, provided that the Lender shall not be under any obligation
                     -------------
     to take any such action, if, in the reasonable opinion of the Lender, to do
     so would or might have an adverse effect upon its business, operations or
     financial condition or be contrary to its policies.

19.  SET-OFF

19.1 The Borrower authorises the Lender to apply any credit balance to which the
     Borrower is then entitled on any account of the Borrower with the Lender at
     any of its offices in or towards satisfaction of any amount then due and
     payable on the occurrence of an Event of Default from the Borrower to the
     Lender under this Agreement.  For this purpose the Lender is authorised to
     purchase with the monies standing to the credit of any such account such
     other currencies as may be necessary to effect such application.  The
     Lender shall not be obliged to exercise any right given to it by this
     Clause.  The Lender shall notify the Borrower forthwith upon the exercise
     or purported exercise of any right of set-off giving full details in
     relation thereto.

20.  WAIVERS

20.1 No failure to exercise nor any delay in exercising on the part of the
     Lender of any right or remedy under this Agreement shall operate as a
     waiver thereof, nor shall any single or partial exercise of any such right

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     or remedy prevent any other exercise thereof or the exercise of any other
     such right or remedy.  The rights and remedies provided under or in
     connection with this Agreement are cumulative and not exclusive of any
     rights or remedies provided by law.

21.  COSTS AND EXPENSES

21.1 The Borrower shall:

     21.1.1  on demand reimburse the Lender for all out-of-pocket costs and
             expenses (including, without limitation, legal fees) reasonably
             incurred by it in the negotiation, preparation, execution and
             delivery of the Documents and any other documents to be delivered
             at any time pursuant to the Documents, provided that the Lender's
                                                    -------------
             out-of-pocket costs and expenses shall be capped at a maximum of
             (Pounds)30,000 (excluding VAT and disbursements) in respect of the
             Documents to be delivered at the date of this Agreement (subject to
             a proportionate increase in circumstances specified at the meeting
             between the Lender and the Borrower on 5 July 1999);

     21.1.2  pay to the Lender on demand an amount equal to all stamp and other
             duties and taxes to which the Documents and/or any other documents
             to be delivered at any time pursuant to the Documents are or at any
             time may be subject and shall indemnify the Lender against any
             liabilities, costs, claims and expenses resulting from any omission
             to pay or delay in paying any such duty or tax; and

     21.1.3  pay to the Lender on demand all reasonable costs, fees and expenses
             (including, but not limited to, legal fees and expenses) and taxes
             thereon incurred by the Lender in connection with:

             (a)  any variation of, or amendment or supplement to, any of the
                  terms of the Documents which has been requested by the
                  Borrower or any Primus Affiliate; and/or

             (b)  any consent or waiver required from the Lender in relation to
                  the Documents,

     and in each case, regardless of whether the same is actually implemented,
     completed or granted, as the case may be.

     21.1.4  if an Event of Default shall have occurred and be continuing and
             notice thereof shall have been given to the Borrower, pay to the
             Lender on demand all relevant expenses (including the costs of
             preparation of documents) payable or incurred by the Lender in
             contemplation of or otherwise in connection with the enforcement of
             or preservation of any rights under any of the Documents or
             otherwise in respect of money owing under any of the Documents or
             in respect of any breach of any representation, warranty, covenant
             or undertaking herein contained, provided that such expenses were
             reasonably incurred.

22.  BENEFIT OF AGREEMENT AND TRANSFERS

22.1 The Lender is entitled to make a Disposition to any other person or entity,
     provided that (i) the Lender shall not make a Disposition to a competitor
     -------------
     of the Borrower or to any person connected to such competitor (here, for
     the purposes of this Clause 22.1, "connected" shall have the meaning
     ascribed to it in Section 839A of the Income and Corporation Taxes Act
     1988) or (ii) as a result of any such Disposition the Borrower will not be
     liable to pay an additional amount pursuant to this Agreement which
     additional amount would not have been payable had no such Disposition
     occurred.

22.2 The Borrower shall not be entitled to assign or transfer this Agreement or
     all or any of its rights, benefits, obligations and liabilities under this
     Agreement to any other party.

23.  NOTICES

23.1 Any communication or notice to be made or given by one person to another in
     connection with this Agreement shall be made or given by letter or
     facsimile transmission and (unless that person has by fifteen days' written
     notice to the other specified another address or facsimile number) shall be
     made or given to that person at the address or facsimile number specified
     below, each communication or notice by letter being deemed to have been
     made or given upon hand delivery to such address or, as the case may be,
     two

                                       24
<PAGE>

     business days after being posted to it postage prepaid in an envelope
     addressed to it at that address and each communication or notice by
     facsimile transmission being deemed to have been made or given when sent
     provided that the sender has received a transmission receipt confirming
     -------------
     full transmission of the relevant facsimile, in each case.

     The parties' addresses for notices are as follows:

     The Lender:

     Address:      International House
                   3 Harbourmaster Place
                   IFSC
                   Dublin 1
                   Republic of Ireland

     Attention:    Operations Manager

     Facsimile No: +353 1 207 2770

     Each of the Borrower and the Guarantor (two copies of each):

     Address:      Primus Telecommunications Limited
                   4 Victoria Street
                   London SW1H ONE

     Attention:    Andrew Reid/Oliver Buckley

     Facsimile No: +44 207 669 0205

     Address:      Primus Telecommunications Group Inc.
                   1700 Old Meadow Road
                   McLean
                   Virginia 22102
                   United States of America

     Attention:    Neil Hazard/David Slotkin

     Facsimile No: +1 703 902 2814

23.2 Each communication or document made or delivered by one party to another
     pursuant to this Agreement shall be in the English language or accompanied
     by a true and accurate translation thereof in English.

23.3 This Agreement may be executed in any number of counterparts, each of which
     shall constitute an original document.

24.  CONFIDENTIALITY

     The terms and conditions of this Agreement and all disclosures made and
     material exchanged or provided under or in connection with this Agreement
     and all non-publicly available information about the Borrower and its
     Affiliates are confidential and shall neither be disclosed (in whole or in
     part) to any person nor published without the prior written consent of the
     parties hereto (save that disclosure can be made to any person to whom it
     is intended to make a Disposition and who has signed a confidentiality
     undertaking approved (such approval not to be unreasonably withheld or
     delayed) by the Borrower), provided that this Clause shall not prevent
                                -------------
     disclosure as required by law or ministerial or judicial or parliamentary
     or regulatory authority or to the legal or audit or taxation advisers or
     bankers or other professional advisers of any party to this Agreement.

25.  LAW

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

SIGNED and DELIVERED by each of the parties on the date specified at the
beginning.

                                       25
<PAGE>

                              THE FIRST SCHEDULE

     NOTICE OF DRAWDOWN

To:        Ericsson I.F.S.
           International House
           3 Harbourmaster Place
           IFSC
           Dublin 1
           Republic of Ireland

Attention: [    ]

Date:

Dear Sirs,

NOTICE OF DRAWDOWN

We refer to the loan agreement dated [    ] 1999 (the "Agreement") entered into
between yourselves as Lender and ourselves as Borrower pursuant to which a
credit facility of up to the Facility Amount has been made available to us.
Terms defined in the Agreement shall have the same meanings when used herein.

We refer to Clause 5.3 of the Agreement and hereby request the following
Advance:

(a)   the purpose of the proposed Advance is for the satisfaction of the
      obligations of [the Borrower/name of Primus Affiliate] under Purchase
      Orders in relation to the [purchase of Equipment/purchase of
      Software/combined purchase of items of Equipment/Software/installation of
      any of the above] and we attach hereto a schedule of the relevant invoices
      together with copies of such invoices (the "Invoices");

(b)   the amount of the proposed Advance is ____________, being the aggregate
      VAT exclusive amount due under the Invoices;

(c)   the currency of the proposed Advance is _____________;

(d)   the Drawdown Date of the proposed Advance is the date of payment of the
      Invoice; and

(e)   the payment instructions for the proposed Advance are [account details of
      Supplier]:

      Bank:
      Address:
      Sort code:
      Account name:
      Account number:

We confirm that:

(i)   we have paid 15% of the amount due under all relevant Purchase Orders and
      we attach a receipted invoice from [Supplier/Ericsson Affiliate];

(ii)  the representations and warranties made by us in Clause 13 of the
      Agreement are true and accurate on the date hereof as if made on such
      date;

(iii) the undertakings contained in Clause 14 have at all times been complied
      with; and

                                       26
<PAGE>

(iv) no Event of Default or Potential Event of Default has occurred and is
     continuing or would result from the making of the proposed Advance.

We ask that you complete and return to us the schedule of payment instalments
(as referred to in Clause 11.1 of the Agreement) which will apply in respect of
the Advance hereby requested (in the form of the Schedule set out below).  After
receiving such completed schedule of payment instalments from you and subject to
being satisfied with it, we agree to sign and return it to you prior to the
Drawdown Date specified above.

Signed by:

_________________________________
Authorised Signatory
for and on behalf of
PRIMUS TELECOMMUNICATIONS LIMITED

                 Schedule of payments relating to the Advance
              requested by the Notice of Drawdown dated ________

   1.                            2.                          3.
--------------------------------------------------------------------------------
Payment                        Payment        Principal element of each Payment*
  Type                          Dates
--------------------------------------------------------------------------------
   1.
--------------------------------------------------------------------------------
   2.
--------------------------------------------------------------------------------
   3.
--------------------------------------------------------------------------------
   4.
--------------------------------------------------------------------------------
   5.
--------------------------------------------------------------------------------
   6.
--------------------------------------------------------------------------------
   7.
--------------------------------------------------------------------------------
   8.
--------------------------------------------------------------------------------
   9.
--------------------------------------------------------------------------------
   10.
--------------------------------------------------------------------------------
   11.
--------------------------------------------------------------------------------
   12.
--------------------------------------------------------------------------------
   13.
--------------------------------------------------------------------------------
   14.
--------------------------------------------------------------------------------
   15.
--------------------------------------------------------------------------------
   16.
--------------------------------------------------------------------------------
   17.
--------------------------------------------------------------------------------

                                       27
<PAGE>

--------------------------------------------------------------------------------
   18.
--------------------------------------------------------------------------------
   19.
--------------------------------------------------------------------------------
   20.
--------------------------------------------------------------------------------

*NB 1.  The amount of each Payment will be the sum of (a) the principal element
        set out above and (b) an amount for accrued interest .

     2. The Lender shall complete columns 2 and 3 in relation to the payment
        dates and the principal element of each Payment prior the Drawdown Date
        for the applicable Advance.

     3. Interest will be payable on each Repayment Date calculated at the rate
        set out in Clause 9.2 of the Loan Agreement.

Signed by:

____________________________
Authorised Signatory
for and on behalf of
ERICSSON I.F.S.

Dated:

Accepted:

____________________________
Authorised Signatory
for and on behalf of
PRIMUS TELECOMMUNICATIONS LIMITED

Dated:

                                       28
<PAGE>

                              THE SECOND SCHEDULE

                         CONDITION PRECEDENT DOCUMENTS

                     Part A (General Conditions Precedent)

1.   In relation to the Borrower:

     (a)  a copy, certified to be a true and up-to-date copy by a duly
          authorised officer of the Borrower, of the memorandum and articles of
          association of the Borrower;

     (b)  a copy, certified to be a true copy by a duly authorised officer of
          the Borrower, of a resolution of the board of directors of the
          Borrower approving the terms of, and the transactions contemplated by,
          this Agreement and resolving that it execute the Documents to which it
          is a party, and authorising a specified person or persons to execute
          on its behalf each of such Documents and to sign and/or despatch all
          other documents and notices to be signed and/or despatched by it under
          or in connection with such Documents;

     (c)  a certificate of a duly authorised officer of the Borrower setting out
          the names and signatures of the persons authorised to sign, on behalf
          of the Borrower, each of the Documents to which it is a party and any
          documents to be delivered by the Borrower pursuant hereto or thereto.

2.   In relation to the Guarantor:

     (a)  a copy, certified to be a true and up-to-date copy by a duly
          authorised officer of the Guarantor, of the memorandum and articles of
          association of the Guarantor;

     (b)  a copy, certified to be a true copy by a duly authorised officer of
          the Guarantor, of a resolution of the board of directors of the
          Guarantor approving the terms of, and the transactions contemplated
          by, this Agreement and resolving that it execute the Documents to
          which it is a party, and authorising a specified person or persons to
          execute on its behalf each of such Documents and to sign and/or
          despatch all other documents and notices to be signed and/or
          despatched by it under or in connection with such Documents;

     (c)  a certificate of a duly authorised officer of the Guarantor setting
          out the names and signatures of the persons authorised to sign, on
          behalf of the Guarantor, each of the Documents to which it is a party
          and any documents to be delivered by the Guarantor pursuant hereto or
          thereto.

3.   This Agreement duly executed by the Borrower and the Lender.

4.   The Equipment Charge duly executed by the Borrower and the Lender.

5.   The Guarantee executed by the Guarantor.

6.   A copy of any other authorisation or other document, opinion or assurance
     which the Lender considers to be necessary in connection with the entry
     into and performance of, and the transactions contemplated by or for the
     validity and enforceability of any of the Documents.

7.   An opinion of Pepper Hamilton, US legal counsel, acceptable to the Lender
     in respect of the Guarantor.

                 Part B (Conditions Precedent to each Advance)

In respect of each Advance:

1.   When the Equipment is to be purchased by the Borrower pursuant to any
     Purchase Orders specified in the Drawdown Notice for such Advance:

                                       29
<PAGE>

1.1  a Charge duly executed by the Borrower;

1.2  if called upon to do so by the Lender, a letter addressed to the Lender
     from the landlord of the premises at which the relevant Equipment is to be
     installed or located whereby such Landlord waives all rights it may
     otherwise have in such Equipment;

1.3  in relation to the Borrower:

     (a)  a copy, certified to be a true copy by a duly authorised officer of
          the Borrower, of a resolution of the board of directors of the
          Borrower approving the terms of, and the transaction contemplated by,
          the Charge and resolving that it execute the Charge, and authorising a
          specified person or persons to execute on its behalf the Charge and to
          sign and/or despatch all other documents and notices to be signed
          and/or despatched by it under or in connection with the Charge;

     (b)  a certificate of a duly authorised officer of the Borrower confirming
          the memorandum and articles of association of the Borrower remain
          unchanged since the last certified copy thereof was delivered to the
          Lender under this Agreement and setting out the names and signatures
          of the persons authorised to execute on its behalf the Charge and any
          documents be delivered by the Borrower pursuant thereto;

2.   When the Equipment is to be purchased by any Primus Affiliate pursuant to
     any Purchase Orders specified in the Drawdown Notice for such Advance:

2.1  an Affiliate Undertaking duly executed by the relevant Primus Affiliate and
     any documents to be delivered by such Primus Affiliate pursuant thereto;

2.2  a Charge duly executed by the relevant Primus Affiliate;

2.3  if called upon to do so by the Lender, a letter addressed to the Lender
     from the Landlord of the premises at which the relevant equipment is to be
     installed or located whereby such Landlord waives all rights it may
     otherwise have in such Equipment;

2.4  in relation to the relevant Primus Affiliate:

     (a)  a copy, certified to be a true and up-to-date copy by a duly
          authorised officer of such Primus Affiliate, of the constitutional
          documents of such Primus Affiliate;

     (b)  a copy, certified to be a true copy by a duly authorised officer of
          such Primus Affiliate, of a resolution of the board of directors of
          such Primus Affiliate approving the terms of, and the transactions
          contemplated by, the Documents to which it is a party and resolving
          that it execute such Documents, and authorising a specified person or
          persons to execute on its behalf such Documents and to sign and/or
          despatch all other documents and notices to be signed and/or
          despatched by it under or in connection with such Documents;

     (c)  a certificate of a duly authorised officer of such Primus Affiliate
          setting out the names and signatures of the persons authorised to
          execute on its behalf each of the Documents to which it is a party and
          any documents to be delivered by such Primus Affiliate pursuant hereto
          or thereto;

2.5  an opinion of the local legal counsel to the relevant Primus Affiliate
     addressed to the Lender substantially in the form of the Fourth Schedule.

                                       30
<PAGE>

                              THE THIRD SCHEDULE

                             AFFILIATE UNDERTAKING

                                     DATED

                               [PRIMUS AFFILIATE]
                                  as Affiliate

                                      and

                                ERICSSON I.F.S.
                                   as Lender

                                      and

                       PRIMUS TELECOMMUNICATIONS LIMITED
                                   as Company

                       _________________________________

                             GUARANTEE UNDERTAKING
                                 AND INDEMNITY
                       _________________________________

                                   EVERSHEDS
                              S O L I C I T O R S
                 International Banking and Finance Department
                    Senator House, 85 Queen Victoria Street
                                London EC4V 4JL
                  Tel: +44 20 7919 4500 Fax: +44 20 7919 4919

                                       31
<PAGE>

     CONTENTS

<TABLE>
<S>                                                        <C>
1.  DEFINITIONS AND INTERPRETATION.......................  34

2.  GUARANTEE............................................  35

3.  INDEMNITY............................................  35

4.  CONTINUING SECURITY..................................  36

5.  ADDITIONAL SECURITY..................................  36

6.  OBLIGATION AS PRIMARY OBLIGOR........................  36

7.  DEEMED EFFECTIVENESS.................................  36

8.  AFFILIATE'S REPRESENTATIONS AND WARRANTIES...........  37

9.  RIGHTS OF THE LENDER.................................  37

10. RESTRICTION OF AFFILIATE'S RIGHTS AGAINST THE COMPANY  38

11. ENFORCEMENT..........................................  39

12. COSTS & EXPENSES.....................................  40

13. NOTICES..............................................  40

14. MISCELLANEOUS PROVISIONS.............................  40

15. LAW AND JURISDICTION.................................  41

EXECUTION PAGE...........................................  42
ANNEXURE A...............................................  43

THE FOURTH SCHEDULE......................................  44

EXECUTION PAGE...........................................  46
</TABLE>

                                       32
<PAGE>

GUARANTEE UNDERTAKING AND INDEMNITY

DATED:

BETWEEN:

(1)  [PRIMUS AFFILIATE] as Affiliate;

(2)  ERICSSON I.F.S. as Lender; and

(3)  PRIMUS TELECOMMUNICATIONS LIMITED as Company.

RECITALS

(A)  Under the terms of the Facility Agreement, the Lender has agreed to provide
     a loan facility to the Company for the purpose of satisfying certain of the
     payment obligations of the Company (or, as appropriate, any Primus
     Affiliate) under Purchase Orders to be issued in accordance the terms of
     the Supply Contract.

(B)  The Company has requested that an Advance be made available by the Lender
     so that the proceeds thereof (or part of them) can be advanced by the
     Company to the Affiliate and applied towards the Affiliate's purchase of
     the System which the Lender has agreed to do on condition that the
     Affiliate enters into this Guarantee.

OPERATIVE TERMS

1.   DEFINITIONS AND INTERPRETATION

1.1  Unless otherwise defined in this Guarantee or the context otherwise
     requires, terms defined in or by reference in the Facility Agreement shall
     have the same meaning when used in this Guarantee.

1.2  In this Guarantee:

     "Affiliate" means [insert name and details of the relevant Primus
     Affiliate] (and includes its successors and permitted assigns and any
     person with whom it may amalgamate);

     "Company" means Primus Telecommunications Limited, a company incorporated
     in England with registered number 02937312 and having its registered office
     at 4 Victoria Street, London SW1H 0NE (and includes its successors and
     permitted assigns and any person with whom it may amalgamate);

     "Facility Agreement" means an agreement of even date between the Company
     (as borrower) and the Lender (as lender) in respect of multi-currency loan
     facility of up to GBP 21,250,000;

     "Guaranteed Amounts" means all the sums referred to in Clause 2.1.1;

     "Lender" means Ericsson I.F.S., a company incorporated in Ireland with
     registered number 150734 and having its registered office at International
     House, 3 Harbourmaster Place, IFSC, Dublin 1, Republic of Ireland (and
     includes its successors and permitted assigns in accordance with Clause 14
     and any person with whom it may amalgamate);

     "Outstanding Amount" means such part of the Guaranteed Amounts as shall
     from time to time be due and payable from the Company to the Lender;

     "Outstanding Obligations" means any obligation on the part of the Company
     assumed under the Facility Agreement in relation to the System which has
     fallen due for performance in accordance with its terms;

     "Parent" means Primus Telecommunications Group Inc., a company incorporated
     in under the laws of the State of Delaware, USA, and having its principal
     place of business at 1700 Old Meadow Road, McLean, Virginia 22102, U.S.A.
     (and includes its successors and permitted assigns and any person with whom
     it may amalgamate);

                                       33
<PAGE>

      "System" means those items of Equipment, Software, Services, Training,
      Installation and otherwise specified in an invoice issued by [the
      Lender/Ericsson Affiliate] to the Affiliate pursuant to the Supply
      Contract, a copy of which invoice is attached hereto as Annexure A.

1.3   In this Guarantee, unless the context otherwise requires:

      1.3.1 any references to "person" or "persons" shall include, without
            limitation, individuals, partnerships, corporations, government
            agencies, committees, departments, authorities and other bodies,
            corporate or unincorporated, whether having distinct legal
            personality or not;

     1.3.2  words (including words and expressions defined) denoting the
            singular shall include the plural and vice; words importing neuter
            gender shall include the masculine or feminine gender;

     1.3.3  any reference to this "Guarantee" or any other agreement or document
            shall be construed as a reference to this Guarantee Undertaking and
            Indemnity or, as the case may be, such other agreement or document
            as the same may have been, or may from time to time be, amended,
            varied, novated, supplemented or extended;

     1.3.4  "business day" means a day (excluding Saturday or Sunday) on which
            banks are open for business in London;

     1.3.5  an "en cumbrance" shall be construed as a reference to any mortgage,
            pledge, lien, charge, equity, assignment by way of security,
            hypothecation, security interest, title retention and any other
            security arrangement and, if entered into for the purpose of raising
            borrowed money, any deferred purchase, title retention, financial
            lease, sale and repurchase or sale and lease-back arrangement and
            any royalty, over-riding royalty, net profits interest or production
            payment of any kind;

     1.3.6  any reference to a statute shall be construed as a reference to such
            statute as the same may have been, or may from time to time be,
            amended or re-enacted; and

     1.3.7  any reference to a "Clause" or "Annexure" shall be construed as a
            reference to a Clause of or an Annexure to this Guarantee.

1.4  Clause headings are for ease of reference only.

2.   GUARANTEE

2.1  In consideration of the Lender agreeing to make the relevant Advance (or
     part of it) available for the purpose described in Recital (B) above, the
     Affiliate hereby unconditionally guarantees to the Lender:

     2.1.1  the due and prompt payment by the Company of all monies which are
            now or shall for the time being be due owing or incurred by the
            Company under the Facility Agreement in relation to the Advance
            referred to in Recital (B) or that portion of it which was applied
            towards the Affiliate's purchase of the System, together with all
            interest and other charges due under the Facility Agreement in
            relation to such amount (as well after as before any judgment)
            obtained in respect thereof;

     2.1.2  the due performance and observance by the Company of the obligations
            on the part of the Company assumed under the Facility Agreement in
            relation to the System.

3.   INDEMNITY

3.1  In addition to its obligations under Clause 2 and as a separate, continuing
     and independent obligation, the Affiliate hereby irrevocably agrees to
     indemnify and keep the Lender fully and effectively indemnified from and
     against all actions and proceedings, costs, damages, expenses, claims,
     demands and losses whatsoever arising as a result of any one or more of the
     following:

                                       34
<PAGE>

      3.1.1 any failure by the Company to make any payment of any Outstanding
            Amounts;

      3.1.2 the guarantee in Clause 2 being or becoming unenforceable or it
            being or becoming unlawful for the Affiliate to give the guarantee
            set out in Clause 2;

      3.1.3 the obligations of the Company under the Facility Agreement in
            respect of the System becoming illegal or unenforceable;

      3.1.4 the rights of the Lender under the Facility Agreement in respect of
            the System being unenforceable or in any way being incapable of
            being enforced in accordance with their terms or otherwise.

4.    CONTINUING SECURITY

4.1   The Affiliate hereby acknowledges that:

      4.1.1 the guarantee, undertaking and indemnity contained in this Guarantee
            shall continue in full force and effect until all the Guaranteed
            Amounts have been paid in full and all other obligations of the
            Company under the Facility Agreement in respect of the System have
            been performed or discharged; and

      4.1.2 it shall not be released from its obligations or liabilities under
            this Guarantee by any intermediate payment or performance or
            satisfaction of any Outstanding Amounts or Outstanding Obligations,

      but rather that this Guarantee shall continue and be binding as a
      continuing security of the Affiliate.

5.    ADDITIONAL SECURITY

5.1   The Affiliate acknowledges that this Guarantee shall be in addition to and
      shall not be in any way affected or prejudiced by any collateral or other
      security (whether merely personal or involving an encumbrance on any
      property and whether from the Company or any other person whatsoever) now
      or hereafter held by the Lender (or any person on behalf of the Lender) in
      respect of all or any part of the monies hereby secured or obligations
      hereby guaranteed nor shall such collateral or other security or any lien
      to which the Lender may be otherwise entitled or the liability of any
      person or persons not parties hereto for all or any part of such monies be
      in any way prejudiced or affected by this Guarantee and the Lender may at
      its discretion give time for payment or make any other arrangement with
      any other person or persons without prejudice to this Guarantee or any
      liability of the Affiliate hereunder.

6.    OBLIGATION AS PRIMARY OBLIGOR

6.1   The Affiliate acknowledges that its liability under this Guarantee shall
      be as a sole or primary obligor and not merely as surety and shall not be
      impaired or discharged by reason of any matter, act or omission whereby
      the liability of the Affiliate would have been discharged if it had been a
      principal debtor.

6.2   The Affiliate hereby waives all and any of its rights as surety which may
      at any time be inconsistent with any of the provisions of this Guarantee.

7.    DEEMED EFFECTIVENESS

7.1   The Affiliate acknowledges that its obligations in the Guarantee shall be
      deemed to be effective whether or not the Company shall have incurred any
      obligations to the Lender under the Facility Agreement before or upon or
      after the date hereof.

8.    AFFILIATE'S REPRESENTATIONS AND WARRANTIES

8.1   The Affiliate hereby represents and warrants to the Lender as follows:

                                       35
<PAGE>

     8.1.1  it is a corporation duly organised and validly existing under the
            laws of [country of incorporation] and has all requisite corporate
            power and authority to execute and deliver this Guarantee and to
            perform its obligations hereunder;

     8.1.2  the execution and delivery of this Guarantee and performance of its
            obligations hereunder has been duly authorised by appropriate
            corporate action and does not cause it to be in breach of any
            agreement or undertaking;

     8.1.3  this Guarantee constitutes legal and valid obligations binding on it
            and enforceable against it;

     8.1.4  all governmental and other organisations' approvals, licences and
            consents and declarations to any applicable governmental or other
            authorities and agencies in respect of the execution by the
            Affiliate of this Guarantee and for the performance and observance
            by it of its obligations hereunder or to render the guarantee,
            undertakings and indemnity contained herein legal, valid binding,
            enforceable and admissible in evidence have been obtained and remain
            in full force and effect.

9.   RIGHTS OF THE LENDER

9.1  Indulgence and giving of Time

     The Lender may at any time, without in any case affecting the guarantee,
     undertakings and indemnity contained in this Guarantee in its absolute
     discretion and with or without the assent or knowledge of the Affiliate:

     9.1.1  give time to the Company and/or of any other person contingently or
            otherwise liable for the monies hereby secured or the obligations
            hereby assumed for payment of any or all monies hereby secured or
            performance or observance of obligations hereby assumed or compound
            with, accept compositions from or make any other arrangement with
            the Company or any such other person or persons liable in respect of
            such monies or obligations;

     9.1.2  neglect or forbear to enforce payment of any or all monies hereby
            secured or performance or observance of obligations hereby assumed
            and (without prejudice to the generality of the foregoing) grant any
            indulgence or forbearance to or fail to assert or delay in asserting
            any right or remedy against the Company and/or any other person
            liable (whether contingently or otherwise) in respect of such monies
            or obligations or fail or delay in pursuing any rights or remedies
            against the Company or such other person;

     9.1.3  deal with, accept, vary, exchange, renew, abstain from perfecting or
            release any security or other guarantees, indemnities or rights now
            held or to be held by the Lender for or on account of all or any of
            the monies hereby secured or obligations hereby assumed; or

     9.1.4  amend, add to or vary the terms of the Facility Agreement and/or any
            other arrangement with any person or persons contingently or
            otherwise liable for the monies hereby secured or obligations hereby
            assumed.

9.2  Other means of Payment

     The Lender may:

     9.2.1  (but shall not be obliged to) resort for its benefit to any other
            means of payment or performance or observance of obligations under
            the Facility Agreement at any time in any other way it thinks fit
            without thereby diminishing the liability of the Affiliate under
            this Guarantee; and

     9.2.2  enforce this Guarantee either for:

                                       36
<PAGE>

          9.2.2.1  the payment of the balance of any Outstanding Amount after
                   resorting to other means of payment; or

          9.2.2.2  the due performance or observance of certain Outstanding
                   Obligations after resorting to enforcement of some
                   Outstanding Obligations only; or

          9.2.2.3  the payment of any Outstanding Amount notwithstanding that
                   other means of payment of money have not been resorted to and
                   without entitling the Affiliate to any benefit from such
                   other means of payment.

9.3  Suspense Account

     For the purpose of enabling the Lender to sue the Company or prove in its
     liquidation, receivership, insolvency or administration for all monies
     hereby secured or all obligations hereby undertaken to be performed by the
     Affiliate or to preserve intact the liability of any person (including the
     Affiliate), the Lender may at any time place and keep for such time as it
     may think prudent any money received, recovered or realised under this
     Guarantee in one or more separate or suspense accounts to the credit of the
     Affiliate (or such other person as it shall think fit) without any
     intermediate obligation on the Lender's part to apply the same or any part
     thereof in or towards the discharge of the monies owing or obligations to
     be observed or performed and without any intermediate right on the
     Affiliate's part to sue the Company or prove in the liquidation,
     receivership or insolvency of the Company in competition with the Lender or
     so as to diminish any dividend or other advantage that would or might
     accrue to the Lender or so as to treat the liability of the Company as
     diminished.

9.4  Foreign Currency

     The Lender may apply monies received recovered or realised by the Lender
     under this Guarantee in or towards payment of the purchase of any currency
     required in the discharge of any obligations hereby secured which under the
     terms of the Facility Agreement fall to be discharged in a different
     currency from the respective payment by the Affiliate (whether or not such
     purchase price includes a premium over any official or any other rate of
     exchange) and in or towards payment of any costs, charges and expenses
     incurred by the Lender in connection with the acquisition by the Lender of
     such currency.

10.  RESTRICTION ON AFFILIATE'S RIGHTS AGAINST THE COMPANY

10.1 No counter-security without the Lender's consent

     The Affiliate hereby warrants that it has not and covenants that it will
     not in respect of all or any part of the monies hereby secured take from
     the Company (or from any subsidiary or holding company of the Company or
     subsidiary of the Company's holding company), whether directly or
     indirectly, without the prior written consent of the Lender any promissory
     note, bill of exchange, mortgage, charge, assignment by way of security or
     any other counter-security, whether merely personal or involving a charge
     on any property whatsoever of the Company (or any subsidiary or holding
     company thereof) and whether it (or any person claiming through it by
     endorsement, assignment or otherwise) would or might on the liquidation of
     the Company and to the prejudice of the Lender increase the proofs in such
     liquidation or diminish the assets distributable amongst the creditors of
     the Company.

10.2 Hold counter-security in Trust

     The Affiliate hereby covenants to hold any such counter-security which the
     Affiliate may have taken or may take with such consent upon trust for the
     Lender as a security to the Lender for the fulfilment of the obligations of
     the Affiliate under this Guarantee and forthwith to deposit such counter-
     security with the Lender (or any agent nominated by the Lender for such
     purpose) and the Affiliate shall account to the Lender or such agent (as
     the case may be) for all monies at any time received by it in respect
     thereof.

10.3 Competition and Set-Off

                                       37
<PAGE>

     Unless and until all the monies hereby secured shall have been discharged
     and satisfied in full and the Affiliate shall have been discharged, the
     Affiliate shall not be entitled as against the Lender by paying off part
     only of the Guaranteed Amounts or performance in part of the obligations
     hereby assumed or by any other means or on any other ground to claim in the
     liquidation of the Company any set-off or counterclaim against the Company
     or claim or prove in competition with the Lender in respect of any payment
     by it under this Guarantee or be entitled to claim or have the benefit of
     any set-off, counterclaim or proof against or dividend, composition or
     payment by the Company or the benefit of any other security which the
     Lender may now or hereafter hold for the monies hereby secured or to have
     any share therein.

10.4 Insolvent Company

     10.4.1  The liquidation, receivership or insolvency of the Company shall
             not affect or terminate the liability of the Affiliate under this
             Guarantee.

     10.4.2  All dividends, compositions and payments received by the Lender or
             any trustee or agent of the Lender from the Company or any person
             or persons or company liable or his or their estates and the
             proceeds of any securities realised shall be taken and applied as
             payments in gross without any right on the part of the Affiliate to
             stand in the place of the Lender in respect of or to claim the
             benefit of any such dividends, compositions or payments or security
             released, received or held by the Lender until such time as the
             Lender shall have received the full amount of its claim against the
             Company in respect of all monies hereby secured.

11.  ENFORCEMENT

11.1 Payment or Performance on Demand

     Forthwith on the occurrence of any breach by the Company of any term or
     provision on its part contained in the Facility Agreement in respect of the
     System or upon any part of the Guaranteed Amounts having become due and
     payable by the Company to the Lender, the Affiliate shall (without
     prejudice to the generality of any provision of this Guarantee) on demand
     of the Lender pay to the Lender such Outstanding Amounts or perform such
     Outstanding Obligations.

11.2 Demand for Payment or Performance

     The demand referred to in Clause 11.1 shall mean a demand for payment of an
     Outstanding Amount or performance or observance of an Outstanding
     Obligation made by the Lender (or on behalf of the Lender by any agent,
     solicitor, secretary, manager, director or alternate director or other
     officer or servant of the Lender) on the Affiliate by notice in writing and
     such demand may be made when or at any time after the Lender becomes
     entitled to call for payment of the Outstanding Amount or performance of
     the Outstanding Obligation and separate demands may be made in respect of
     separate amounts or obligations at different times.

11.3 No Withholding

     Subject to Clause 11.4:

     11.3.1  the Affiliate shall pay all monies due under this Guarantee in full
             without any deduction, set-off, counterclaim or withholding
             whatsoever; and

     11.3.2  if the Affiliate shall be required by law to make any deduction or
             withholding from any payment, then the Affiliate shall ensure that
             such deduction or withholding will not exceed the minimum legal
             liability therefor and shall forthwith pay to the Lender such
             additional amount as will result in the receipt by the Lender of a
             net amount equal to the amount it would have received had no such
             deduction or withholding been required to be made.

11.4 If the Lender has received a tax benefit by reason of any deduction or
     withholding in respect of which the Affiliate has made an increased payment
     under Clause 11.3 and provided the Lender has received all amounts which
     are then due and payable by the Affiliate under any of the provisions of
     this Guarantee, the

                                       38
<PAGE>

     Lender shall pay to the Affiliate upon utilisation of the tax benefit to
     secure a saving of tax that would otherwise have been payable (to the
     extent that the Lender can do so without prejudicing the amount of that tax
     benefit and the right of the Lender to obtain or utilise any other benefit
     relief or allowance which may be available to it) such amount, if any, as
     the Lender shall determine will leave the Lender in no better and no worse
     position than the Lender would have been if the deduction or withholding
     had been required.

12.  COSTS AND EXPENSES

12.1 The Affiliate hereby covenants to pay to the Lender on demand the legal and
     other costs, charges and expenses from time to time reasonably incurred by
     the Lender in any way in connection with the enforcement or discharge of
     this Guarantee.

13.  NOTICES

13.1 Any communication or notice to be made or given by the Lender to the
     Affiliate in connection with this Guarantee shall be made or given by
     letter or facsimile transmission and (unless the Affiliate has by fifteen
     days' written notice to the Lender specified another address or facsimile
     number) shall be made or given to the Affiliate at the address or facsimile
     number specified below, each communication or notice by letter being deemed
     to have been made or given upon hand delivery to such address or, as the
     case may be, five business days after being posted to it postage prepaid in
     an envelope addressed to it at that address and each communication or
     notice by facsimile transmission being deemed to have been made or given
     when sent provided that the sender has received a transmission receipt
     confirming full transmission of the relevant facsimile, in each case.

     The Affiliate's address and facsimile number for communications and notices
     are as follows:

     Address:    [        ]

     Attention:  [        ]

     Fax number: [        ]

14.  MISCELLANEOUS PROVISIONS

14.1 Successors

     This Guarantee shall enure to the benefit of and be binding upon the
     respective parties hereto and any person to whom the Lender has made a
     Disposition in accordance with Clause 22 of the Facility Agreement

14.2 Severability

     14.2.1  If at any time any one or more of the provisions of this Guarantee
             is or becomes invalid, illegal or unenforceable in any respect or
             under any applicable law, then the validity, legality and
             enforceability of the remaining provisions hereof shall not in any
             way be affected or impaired thereby.

     14.2.2  If at any time the guarantee and/or indemnity contained in this
             Guarantee is or becomes invalid or unenforceable in whole or in
             part against the Affiliate, then the guarantee and/or the indemnity
             (as the case may be) shall be deemed to continue in full force and
             effect save to the extent that such guarantee and/or the indemnity
             has become invalid or unenforceable.

14.3 Waivers

     No delays by the Lender in exercising or the omission by the Lender to
     exercise any right, power or privilege under this Guarantee shall impair
     such right, power or privilege or be construed as a waiver of such right,
     power or privilege, nor shall any singular or partial exercise of any
     right, power or privilege preclude any further exercise thereof or the
     exercise of any other right, power or privilege.

                                       39
<PAGE>

14.4 Exercise of Rights

     The rights and remedies provided in this Guarantee are cumulative and not
     exclusive of any rights and remedies provided by law or otherwise.

14.5 Amendments

     No modification of any provision of this Guarantee shall be binding unless
     the same shall be evidenced in writing duly executed by the Affiliate, the
     Lender and the Company.

15.  LAW AND JURISDICTION

15.1 Governing Law

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

15.2 Submission to jurisdiction

     For the benefit of the Lender, the Affiliate agrees that the courts of
     England are to have jurisdiction to settle any disputes which may anise in
     connection with the legal relationships established by this Guarantee
     (including, without limitation, claims for set-off or counterclaim) or
     otherwise arising in connection with this Guarantee.

15.3 The Affiliate irrevocably waives any objections on the ground of venue or
     forum non conveniens or any similar grounds.

15.4 The submission to jurisdiction of the courts contained in Clause 15.2 shall
     not (and shall not be construed so as to) limit the right of the Lender to
     take any proceedings against the Affiliate in any other court of competent
     jurisdiction nor shall the taking of the proceedings in any one or more
     jurisdictions preclude the taking of proceedings in any other jurisdiction,
     whether concurrently or not.

15.5 Process Agent

     The Affiliate shall at all times maintain an agent for service of process
     in England.  Such agent shall be the Company and any writ, judgment or
     other notice of legal process shall be sufficiently served on the Affiliate
     if delivered to the Company at its address above.

15.6 The Company hereby acknowledges and consents to such appointment.

IN WITNESS WHEREOF this Guarantee Undertaking and Indemnity has been executed
and delivered as a deed by the Affiliate and executed under hand by the Lender
on the date stated at the beginning.

                                       40
<PAGE>

                                EXECUTION PAGE

AFFILIATE

EXECUTED for                       )
[PRIMUS AFFILIATE]                 )
by:                                )

 ......................
Director

 ......................
Director

LENDER

SIGNED for and on behalf of        )
ERICSSON I.F.S. by:                )

 ......................
Authorised Signatory

COMPANY

SIGNED for and on behalf of        )
PRIMUS TELECOMMUNICATIONS LIMITED  )
by:                                )

 ......................
Authorised Signatory

                                       41
<PAGE>

     ANNEXURE A

     [A copy of the relevant invoice is to be attached]

                                       42
<PAGE>

                              THE FOURTH SCHEDULE

                     FORM OF LEGAL OPINION TO BE GIVEN BY
                    LOCAL LEGAL COUNSEL TO PRIMUS AFFILIATE

         [TO BE TYPED ON LOCAL LEGAL COUNSEL'S LETTERHEADED NOTEPAPER]

To:       Ericsson I.F.S.
          International House
          3 Harbourmaster Place
          IFSC
          Dublin 1
          Republic of Ireland

Dear Sirs

1.    Introduction

1.1   We give this opinion as special counsel on behalf of Ericsson IFS in
      connection with a facility agreement dated _______ 1999 (the "Facility
      Agreement") between Primus Telecommunications Limited (as borrower) and
      Ericsson IFS (as lender) relating to a multi-currency credit facility of
      up to an aggregate amount of (Pounds)21,250,000. Terms defined in or by
      reference in the Facility Agreement shall have the same meanings herein.

2.    DOCUMENTS EXAMINED

2.1   For the purpose of this opinion, we have examined and rely on:

      2.1.1 an executed copy of [describe the applicable Affiliate
            Undertaking];

      2.1.2 an executed copy of [describe the applicable Charge];

      2.1.3 [list any other documents that local counsel examined in order to
            give this opinion].

3.    OPINION

3.1   Based on and subject to the documents we have examined and the
      assumptions, exceptions, qualifications and reservations set out
      herein/1/, we are of the opinion that:

      3.1.1 the Company is duly constituted and validly existing under the laws
            of its state of incorporation;

      3.1.2 the Company has full power, capacity and authority to own its
            assets, to carry on its business as is now being carried on and to
            discharge liabilities and perform obligations of the nature
            specified in the Affiliate Undertaking and the Charge;

     3.1.3  the Affiliate Undertaking and the Charge constitutes the Company's
            legal, valid and binding obligations enforceable against it;

     3.1.4  the persons who execute the Affiliate Undertaking and the Charge on
            behalf of the Company are duly authorised to do so and to bind the
            Company to its obligations under the Affiliate Undertaking and the
            Charge;

_______________
     /1/    Local counsel should include such assumptions, exceptions,
            qualifications and reservations as are necessary to take account of
            local law.

                                       43
<PAGE>

     3.1.5  the execution and delivery of the Affiliate Undertaking and the
            Charge and the performance of the obligations and discharge of the
            liabilities, contemplated therein do not and will not violate any
            law or regulation in the [insert applicable jurisdiction] and are
            not in conflict or inconsistent with the terms of any [insert
            applicable jurisdiction] law;

     3.1.6  all actions, conditions, consents and other requirements of [insert
            applicable jurisdiction] law and of the Company's constitutional
            documentation have been taken, fulfilled and observed so as to
            enable the Company to incur and perform the obligations and
            discharge the liabilities created by the Affiliate Undertaking and
            the Charge;

     3.1.7  it is not necessary for the legality, validity and enforceability or
            admissibility in evidence of the Affiliate Undertaking and the
            Charge that either of the documents be filed and recorded or
            registered with any court or authority in or of [insert applicable
            jurisdiction] and that no stamp duty, registration or other similar
            tax is payable in [insert applicable jurisdiction];

     3.1.8  the choice of English law to govern the Affiliate Undertaking and
            the Charge is a valid choice under the laws of [insert applicable
            jurisdiction] and will be enforced by a court in [insert applicable
            jurisdiction] and that the Company's submission to the jurisdiction
            of the English courts and its appointment of an agent to service of
            process in England is valid;

     3.1.9  it is not a requirement under [insert applicable jurisdiction] law
            that the Lender be licenced, qualified or entitled to carry on
            business in [insert applicable jurisdiction] in order to be able to
            enter into, execute, deliver and enforce its rights under either of
            the Affiliate Undertaking and the Charge;

     3.1.10 the Lender will not become subject to taxation in [insert applicable
            jurisdiction] solely by virtue of entering into the Affiliate
            Undertaking and the Charge; and

     3.1.11 no further action whatsoever (whether on the part of the Lender, the
            Borrower, the Company or any other party) is required to ensure
            that, following the occurrence of an Event of Default, the Lender
            can recover actual physical possession of the equipment to which the
            Charge relates;

     3.1.12 [any other aspects which Counsel considers relevant].

NB  Counsel is also required to advise as to whether any priority or
subordination arrangements will be required to be entered into with creditors of
the Company in order to ensure that the Lender has a first ranking security
interest created in its favour over the equipment to which the Charge relates.

                                       44
<PAGE>

                                EXECUTION PAGE

BORROWER

PRIMUS TELECOMMUNICATIONS LIMITED

By: ___________________________

Name:

Title:

LENDER

ERICSSON I.F.S.

By: ___________________________

Name:

Title:

                                       45<PAGE>

                                                                   Exhibit 10.17

                         COOPERATIVE MARKETING AGREEMENT

     This Agreement is made and entered into by and between Oracle Corporation
("Oracle"), with offices at 500 Oracle Parkway, Redwood City, CA 94065 and
thinWEB.com Corporation ("thinWeb"), 6 Antares Drive, Suite 101, Phase III,
Ottawa, Ontario Canada K2E 8A9.

     Whereas, thinWeb is developing and marketing a product called ThinAccess;
and

     Whereas, Oracle is developing and marketing the Oracle JDeveloper product
for its Internet platform (the "Oracle Program"); and

     Whereas, Oracle and thinWEB wish to enter into a cooperative marketing
agreement to demonstrate to customers and potential customers the benefits of
using ThinAccess in conjunction with the Oracle Program (referred to
collectively as "the Products").

     Now, Therefore, in consideration of the mutual promises set forth below,
Oracle and thinWeb agree as follows:

1.   Cooperative Relationship and Licenses.

     1.1 In General. Oracle and thinWeb agree to cooperate and coordinate in
     good faith relating to the marketing of the Oracle Program and ThinAccess.

     1.2 License of the ThinAccess to Oracle. thinWEB hereby grants to Oracle
     and its subsidiaries a nontransferable, nonexclusive, royalty-free,
     worldwide license to use object code versions of ThinAccess and related
     documentation and marketing collateral solely for Oracle's use for the
     marketing effort under this Agreement. thinWEB shall provide Oracle with
     one (1) beta version of each new release and thereafter a mutually agreed
     upon number of production versions of ThinAccess for that purpose.

     1.3 License of Oracle Program to thinWEB. Oracle hereby grants to thinWEB
     and its subsidiaries a nontransferable, nonexclusive, royalty-free,
     worldwide license to use object code versions of Oracle Program and related
     documentation solely for thinWEB's use for the marketing effort under this
     Agreement. Oracle shall provide thinWEB with one (1) beta version of each
     new release and thereafter a mutually agreed upon number of production
     versions of Oracle Program for that purpose.

     1.4 License Restrictions. The licenses described in this Section 1 are
     limited to use under this Agreement only for the following purposes:
     marketing and demonstraton to customers and potential customers; internal
     training; providing technical support to customers solely in conjunction
     with the party's own Product; product compatibility testing as set forth in
     Section 1.5 herein; and to copy the Products for archival or backup
     purposes. No other copies shall be made without the licensor's prior
     written consent. All titles,

                                     Page 1
<PAGE>

     trademarks and copyright and restricted rights notices shall be reproduced
     in such copies. All archival and backup copies of the Products are subject
     to the terms of this Agreement. Neither party may:

     A.   License, sublicense, distribute (electronically or otherwise), use in
          any manner not specified in this Agreement, duplicate, or make the
          other party's Product available to unauthorized third parties;

     B.   Market the other party's Product other than as specified in this
          Agreement, unless first obtaining written approval from the other
          party;

     C.   Modify the other party's Product; or

     D.   Cause or permit the reverse engineering, disassembly, or decompilation
          of the other party's Product.

     Each party shall retain all title, copyright, and other proprietary rights
     in its respective Product, and any modifications or translations thereof.
     Neither party acquires any rights in the other Party's Product other than
     those specified in this Agreement.

     1.5 Compatibility Testing. thinWEB shall verify to Oracle that every
     version and update of ThinAccess is compatible with the latest version of
     the Oracle Program, specifically, that ThinAccess can be used for access to
     Oracle [?] on the web through a firewall. Should either party discover a
     compatibility issue during the verification process, the parties agree to
     promptly make reasonable commercial efforts to resolve the issue. However,
     neither party is obligated to alter its product in any way.

     1.6 Technical Support. Each party is responsible for providing technical
     support of its own product. However, the parties agree to use reasonable
     commercial efforts to cooperate with each other when a support issue arises
     during the course of activities undertaken pursuant to this Agreement.

2.   Cooperative Marketing Responsibilities.

     2.1 Marketing Cooperation. Each party will create a link to the other
     party's web site as follows:

     A.   Oracle will create a link to thinWEB's web site from the Oracle
          JDeveloper Partner page located at
          http://www.oracle.com/tools/jdeveloper; and

     B.   Consistent with Oracle's policies on web site linking thinWEB will
          create a link on its web site to the Oracle JDeveloper web site to
          promote the Oracle Program.

     2.2 Marketing Options. Oracle and thinWEB shall use reasonable commercial
     efforts to cooperate in other joint marketing activities, which may include
     the following:

                                     Page 2
<PAGE>

     A. Oracle may:

          (i)  Make available to thinWEB an early access version of the Oracle
               Program via the Oracle Technology Network program;

          (ii) Make available to Oracle sales representatives and consultants
               marketing collateral provided by thinWEB, via the Oracle
               JDeveloper internal web site; and

         (iii) Provide to thinWEB a list of additional marketing activities in
               which thinWEB has the option to participate.

     B.   thinWEB may:

          (i)  Make available to Oracle marketing collateral, in digital form,
               including, but not limited to, FAQs, white papers, customer
               success stories, reference sites and/or integrated demos, that
               Oracle can distribute on its internal JDeveloper web site; and

          (ii) In addition to any authorized statements subsequently agreed to
               by the parties, state in marketing collateral that ThinAccess is
               compatible with the Oracle Program, provided that such
               compatibility has been verified pursuant to Section 1.5.

     The parties may participate jointly in public relations activities
     subsequently agreed to by the parties.

3.   Costs and Expenses. Except as otherwise set forth in this Agreement, each
     party hereto shall bear all costs, risks and liabilities by it arising out
     of its performance under this Agreement. No party shall have a right to any
     reimbursement, payment or compensation from the other party for products,
     resources supplied, or services performed by a party in furtherance of this
     Agreement, except as otherwise expressly provided under this Agreement.

4.   Cooperative Marketing Manager. Each party agrees to appoint a manager to
     coordinate its respective activities under this Agreement and to act as the
     primary point of contact for all activities hereunder. The Cooperative
     Marketing Managers for each party are as follows:

         For thinWEB:                 For Oracle:
         ------------                 -----------

           Gary T. Hannah                  Pei Wong
           President and CEO               Principal Product Manager, Java Tools
           6 Antares Drive, Suite 101      200 Oracle Pkwy, Suite 1274
           Ottawa,  Ontario                Redwood Shores, California
           Canada,  K2E 8A9                USA 94065
           (877)844-6932                   (650)506-2681

                                     Page 3
<PAGE>

     The two Cooperative Marketing Managers will be the individuals responsible
     for planning and implementing this relationship, working to resolve any
     disputes which may arise, and for focusing priorities and resources
     necessary to facilitate the success of this relationship. Oracle and
     thinWEB may each change their appointed Cooperative Marketing Manager by
     written notification to the other party.

5.   Term of Agreement.

     5.1 Term. This Agreement shall become effective on the Effective Date set
     forth below and shall remain in effect for one (1) year from the Effective
     Date, unless the Agreement is terminated previously as provided below. The
     initial term of this Agreement will be renewed automatically upon each
     anniversary date.

     5.2 Termination. Either party may terminate this Agreement on thirty (30)
     days written notice without cause.

     5.3 Effect of Termination. Upon termination, the licenses granted hereunder
     shall terminate, and each party shall discontinue the web site
     cross-linking activities set forth in Sectoin 2.1 and cease using the other
     party's marketing materials. Sections 6,7,8,9 and 10 shall survive
     termination of this Agreement.

6.   Publicity and Trademarks

     6.1 Publicity. No information regarding the existence of this Agreement, or
     the activities covered under this Agreement, will be publicly released
     without the prior written authorization of the other party.

     6.2 Trademarks. This Agreement grants neither party any rights to use the
     other party's trademarks.

7.   Warranties.

     7.1 WARRANTY. Each party warrants that it has the right to enter into this
     Agreement and to perform its obligations hereunder. NEITHER PARTY WARRANTS
     THAT ITS PRODUCTS WILL MEET ITS CUSTOMERS' REQUIREMENTS OR OPERATE IN THE
     COMBINATION WHICH MAY BE SELECTED FOR USE BY ITS CUSTOMERS. ORACLE PROVIDES
     NO WARRANTY AS TO THE OPERATION OF THE ORACLE PROGRAM.

     7.2 EXCLUSION. THE WARRANTIES STATED HEREIN ARE EXCLUSIVE AND IN LIEU OF
     ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO
     IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

                                     Page 4
<PAGE>

8.   Confidential Information. By virtue of this Agreement, the parties may have
     access to information that is confidential to one another ("Confidential
     Information"). Confidential Information shall include: (a) confidential
     information which is disclosed by either party in writing and is marked as
     confidential at the time of disclosure; or (b) confidential information
     which is disclosed by either party in any other manner and is clearly
     marked as confidential at the time of disclosure and is also summaried and
     designated as confidential in a written memorandum and delivered to the
     receiving party writing 30 days of disclosure.

     A party's Confidential Information shall no include information which: (a)
     is or becomes a part of the public domain through no act or omission of the
     other party; or (b) was in the other party's lawful possession prior to the
     disclosure and had not been obtained by the other party either directly or
     indirectly from the disclosing party; or (c) is lawfully disclosed to the
     other party by a third party without restriction on disclosure; or (d) is
     independently developed by the other party. thinWEB shall not disclose the
     results of benchmark tests or other evaluations of the Program to any third
     party unless Oracle grants thinWEB prior written consent to such
     disclosure.

     The parties agree, both during the term of this Agreement and for a period
     of five (5) years after termination of this Agreement, to hold each other's
     Confidential Information in confidence and to protect the disclosed
     confidential information by using the same degree of care, but not less
     than a reasonable degree of care, to prevent the unauthorized use,
     dissemination or publication of the confidential information as they use to
     protect their own confidential information of a like nature. The parties
     agree not to make each other's Confidential Information available in any
     form to any third party or to use each other's Confidential Information for
     any purpose other than the implementation of this Agreement. Each party
     agrees to take all reasonable steps to ensure that Confidential Information
     is not disclosed or distributed by its employees or agents in violation of
     the provisions of this Agreement.

9.   LIMITATION OF LIABILITY, EXCEPT FOR LIABILITY FOR VIOLATION OF A PARTY'S
     INTELLECTUAL PROPERTY RIGHTS, (A) NEITHER PARTY SHALL BE LIABLE FOR ANY
     INDIRECT, INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES, INCLUDING LOSS OF
     PROFITS, REVENUE, DATA, OR USE, INCURRED BY EITHER PARTY OR ANY THIRD
     PARTY, WHETHER IN AN ACTION IN CONTRACT OR TORT, IN ANY WAY ARISING FROM
     EITHER PARTY'S PERFORMANCE OR NONPERFORMANCE OF THIS AGREEMENT, EVEN IF THE
     OTHER PARTY OR ANY OTHER PERSON HAS BEEN ADVISED OF THE POSSIBLITY OF SUCH
     DAMAGES, AND (B) NEITHER PARTY'S LIABILITY FOR DAMAGES HEREUNDER SHALL
     EXCEED $25,000.

10.  Assignment. The rights granted in this Agreement may not be assigned or
     transferred by either party without the prior written approval of the other
     party. Neither party shall be

                                     Page 5
<PAGE>

     permitted to delegate its responsibilities or obligations hereunder without
     the prior written approval of the other party.

11.  Controlling Law; Jurisdiction. This Agreement shall be governed by the laws
     of the State of California, U.S.A., without regard for its conflict of laws
     provisions. This Agreement shall be deemed to be executed in Redwood City,
     California.

     In any legal action relating to this Agreement, thinWeb agrees: (a) to the
     exercise of jurisdiction ever it by a state or federal court in San
     Francisco or San Mateo County, California, U.S.A. and (b) that if thinWeb
     brings the action, it shall be instituted in one of the courts specified in
     Subparagraph (a) above. Oracle may institute legal aciton in any
     appropriate jurisdiction.

12.  Relationship Between Parties. In all matters relating to this Agreement,
     each party will act as an independent contactor. Neither party will
     represent that it has any authority to assume or create any obligation,
     express or implied, on behalf of the other party, nor to represent the
     other party as agent, employee, or in any other capacity.

     Nothing in this Agreement shall preclude either party from entering into
     relationships with any other companies which are similar to the
     relationship between the parties, nor shall this Agreement preclude either
     party from independently developing or marketing any products that are
     similar to or compete with the other party's products provided however,
     that neither party shall use the other's Confidential Information to
     develop, promote or market such similar or competing products.

13.  Notice. All notices including notices of address changes, required to be
     sent hereunder shall be in writing to the Cooperative Marketing Manager
     identified in Section 4 above. Notice shall be deemed to have been given
     upon addressee's receipt.

                                     Page 6
<PAGE>

14.  Entire Agreement. This Agreement sets forth the entire Agreement between
     the parties and supersedes prior proposals, agreements, and representations
     between them, whether written or oral relating to the cooperative marketing
     of Oracle products and thinWEB products and services. This Agreement may be
     changed only if agreed to in writing signed by an authorized signatory of
     each party.

The Effective Date of this Cooperative Marketing Agreement is October 18, 1999.

ThinWEB.com Corporation                     Oracle Corporation

By: /s/ Gary Hannah                                  By:  /s/ [ILLEGIBLE]
    --------------------                                  ------------------
Name: Gary Hannah                                    Name: [ILLEGIBLE]

Title: President & CEO                               Title: Sr. Vice President

                                    Page 7

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