Document:

Exhibit 4.1

                        WRITTEN CONSENT OF THE DIRECTORS
                                       OF
                       P.D.C. INNOVATIVE INDUSTRIES, INC.

         The undersigned, constituting all of the directors of P.D.C. Innovative
Industries, Inc., a Nevada corporation, (the "Corporation"), hereby adopts the
following resolutions pursuant to Section 78.315 of the Nevada General
Corporation Law:

         WHEREAS, in accordance with applicable Nevada corporate law, the Board
of Directors deems it to be in the best interests of the Corporation to
authorize: (i) the issuance of 160,000 shares of the Corporation's common stock
to a certain employee of the Corporation in lieu of salary for having provided
and continuing to provide services to the Corporation as an employee of a
non-capital raising nature; (ii) the issuance of 600,000 shares of the
Corporation's common stock to legal counsel to the Corporation for having
provided and continuing to provide legal consulting services to the Corporation
of a non-capital raising nature; and (iii) the issuance of 280,000 shares of the
Corporation's common stock to consultant for the Corporation who have provided,
and continue to provide, marketing and sales assistance to the Corporation
relating to its Hypo-Pro 2000 product (all of such shares, aggregating
1,040,000, are collectively referred to herein as the "Shares");

         NOW, THEREFORE, BE IT RESOLVED, that the Corporation cause the issuance
of the Shares to such persons pursuant to a Form S-8 Registration Statement to
be filed by the Corporation's legal counsel with the U.S. Securities and
Exchange Commission; and that each and every officer of the Corporation is
authorized to do and perform, or cause to be done and performed, any and all
actions and things which may be necessary, desirable or convenient to effectuate
the purposes and intents of the foregoing resolution.

Dated as of November 4, 2002

                                                      /s/ Sandra Sowers
                                                     -------------------------
                                                     Sandra Sowers, Director

                                                     /s/ Fern Marlene Kennedy
                                                     --------------------------
                                                     Fern Marlene Kennedy<PAGE>

                                                                    EXHIBIT 4.18

                              THOMAS J. MAZZARISI

August 15, 2002

JAG Media Holdings, Inc.
6965 S.W. 18th Street, Suite B13
Boca Raton, FL  33433

Re:      Promissory Note dated April 1, 2002 in the principal amount of $200,000
         between JAG Media Holdings, Inc. (f/k/a JagNotes.com Inc.), as
         borrower, and Thomas J. Mazzarisi, as lender, with a maturity date of
         August 15, 2002 ("Promissory Note")

Gentlemen:

This will serve to confirm that the "Maturity Date" of the Promissory Note is
hereby extended from August 15, 2002 to the earlier of (i) January 31, 2003 or
(ii) the effective date of a "Change in Control" as that term is defined in the
Company's Long-Term Incentive Plan, as amended.

Except for the foregoing changes, the Promissory Note remains unchanged and in
full force and effect.

Sincerely yours,

/s/ Thomas J. Mazzarisi
-----------------------
Thomas J. Mazzarisi<PAGE>

                                                                    EXHIBIT 4.19

                              STEPHEN J. SCHOEPFER

August 15, 2002

JAG Media Holdings, Inc.
6965 S.W. 18th Street, Suite B13
Boca Raton, FL  33433

Re:      Promissory Note dated April 1, 2002 in the principal amount of $200,000
         between JAG Media Holdings, Inc. (f/k/a JagNotes.com Inc.), as
         borrower, and Stephen J. Schoepfer, as lender, with a maturity date of
         August 15, 2002 ("Promissory Note")

Gentlemen:

This will serve to confirm that the "Maturity Date" of the Promissory Note is
hereby extended from August 15, 2002 to the earlier of (i) January 31, 2003 or
(ii) the effective date of a "Change in Control" as that term is defined in the
Company's Long-Term Incentive Plan, as amended.

Except for the foregoing changes, the Promissory Note remains unchanged and in
full force and effect.

Sincerely yours,

/s/ Stephen J. Schoepfer
------------------------
Stephen J. SchoepferEx-4.1

 

Exhibit 4.1

Operation Number 27720

LOAN AGREEMENT

between

MOBIFON S.A.

and

EUROPEAN BANK

FOR RECONSTRUCTION AND DEVELOPMENT

Dated 27 August 2002

 

LOAN AGREEMENT

AGREEMENT, dated 27 August 2002 between MOBIFON
S.A., a joint stock company organised and existing under the
laws of Romania (the “Borrower”), and EUROPEAN BANK
FOR RECONSTRUCTION AND DEVELOPMENT (the “Bank”).

ARTICLE I —
DEFINITIONS

 

Section 1.01  Definitions

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

	 	 	 
	
    “A Loan‘
    	 	
    means the aggregate of the Tranche I A
    Loan and the Tranche II A Loan.
    
	 
	
    “A Loan Interest Conversion Date‘
    	 	
    means an Interest Payment Date selected by the
    Borrower in accordance with Section 3.07(d)(2).
    
	 
	
    “A Loan Interest Conversion Period‘
    	 	
    means a period commencing on an Interest Payment
    Date or date of Disbursement, as applicable, and ending on an
    Interest Payment Date selected by the Borrower as such in
    accordance with Section 3.07(d)(2) or
    Section 3.07(e)(1).
    
	 
	
    “A Loan Interest Fixing Date‘
    	 	
    means a Business Day selected by the Borrower in
    accordance with Section 3.07(d)(2) and which shall be at least
    two Business Days prior to the A Loan Interest Conversion Date
    to which it relates.
    
	 
	
    “ABN Working Capital Agreement‘
    	 	
    means the Working Capital Agreement dated
    February 19, 1999 between the Borrower and ABN AMRO Bank
    Romania S.A. pursuant to which ABN AMRO Bank Romania S.A. has
    agreed to make available to the Borrower a credit facility of up
    to $10,000,000 on the terms and conditions thereof as
    subsequently modified from time to time.
    
	 
	
    “Acknowledgement and Non Disturbance
    Agreement‘
    	 	
    means the agreement between Avrig 35 S.A., HVB
    Bank Romania S.A., Rhombus Asset Management Inc., F&C
    International B.V., the Borrower and the Senior Lenders with
    respect to, inter alia, the Lease Agreement dated
    October 4, 1999 between Avrig 35 S.A. as lessor and the
    Borrower as lessee.
    
	 
	
    “Affiliate‘
    	 	
    means, with respect to any person, any other
    person directly or indirectly controlling, controlled by, or
    under common control with
    

 

	 	 	 
	
    
     
    

    	 	such person.
	 
	
    “Agency Agreement‘
    	 	
    means the agency agreement between the Bank, EDC,
    NIB, the Agent and the Borrower setting out, inter alia,
    the obligations of the Agent in respect of the Bank Loan, the
    EDC Loan and the NIB Loan.
    
	 
	
    “Agent‘
    	 	
    means ABN AMRO Bank N.V. or such other financial
    institution as the Bank, may notify to the Borrower from time to
    time as being the agent for EBRD, EDC and NIB under the Agency
    Agreement.
    
	 
	
    “Applicable Loan Currency‘
    	 	
    means, in respect of any portion of the Bank Loan
    other than a Euro Loan, Dollars, and in respect of each Euro
    Loan, Euro.
    
	 
	
    “Assignment of Receivables‘
    	 	
    means the instrument pursuant to which the
    Borrower assigns all of its right, title, interest and benefit
    in and claims relating to accounts receivable to the Secured
    Parties for the purpose of securing, inter alia, the
    obligations of the Borrower hereunder, in form and substance
    satisfactory to the Bank.
    
	 
	
    “Assignment of Subordinated Debt‘
    	 	
    means the instrument pursuant to which the right,
    title, interest and benefit of the holder of any Permitted High
    Yield Back to Back Debt in and to such Permitted High Yield Back
    to Back Debt is pledged and/or assigned to the Senior Lenders,
    for the purpose of securing, inter alia, the obligations
    of the Borrower hereunder, in accordance with
    Section 3.10(f) and Section 5.07(h), in form and
    substance satisfactory to the Bank.
    
	 
	
    “Auditors‘
    	 	
    means such firm of independent accountants as the
    Borrower may from time to time appoint as its auditors in
    accordance with Section 5.05(c).
    
	 
	
    “Authorised Signatory‘
    	 	
    means, in relation to the Borrower, any person
    who is duly authorised (in such manner as may be reasonably
    acceptable to the Bank) and in respect of whom the Bank has
    received a certificate signed by the Chief Executive Officer or
    another Authorised Signatory of the Borrower setting out the
    name and signature of such person and confirming such
    person’s authority to act.
    

2

 

	 	 	 
	
    “Available Cash Balance‘
    	 	
    means, at any time, the difference between (a)
    the USD Equivalent Amount of the aggregate balance at such time
    of all Cash and Cash Equivalents and (b) the Minimum Cash
    Balance.
    
	 
	
    “B Loan‘
    	 	
    means the aggregate of the Tranche I B Loan and
    the Tranche II B Loan.
    
	 
	
    “Bank Loan‘
    	 	
    means, collectively, the A Loan and the B Loan
    or, as the context may require, the aggregate principal amount
    thereof from time to time outstanding.
    
	 
	
    “Base Case Financial Forecast‘
    	 	
    means the financial projections of the Borrower
    approved by the Borrower by a certificate of an Authorised
    Signatory addressed to the Senior Lenders dated the date hereof.
    
	 
	
    “Borrower Accounts‘
    	 	
    means all bank accounts of the Borrower, other
    than the Employee Personal Guarantee Accounts.
    
	 
	
    “Borrower Power of Attorney‘
    	 	
    means the power of attorney granted by the
    Borrower to the Senior Lenders in respect of the Financing
    Agreements in form and substance satisfactory to the Senior
    Lenders.
    
	 
	
    “Business Day‘
    	 	
    means a day (other than a Saturday or Sunday) on
    which commercial banks and foreign exchange markets are open for
    the transaction of general business in the interbank market for
    Dollars in London, England, on which commercial banks and
    foreign exchange markets settle payments in Dollars in New York
    and on which the Trans-European Automated Real-Time Gross
    Settlement Express Transfer (TARGET) System is open.
    
	 
	
    “Capital Expenditure‘
    	 	
    means any expenditure which should be treated as
    a capital expenditure in the Financial Statements of the
    Borrower in accordance with Generally Accepted Accounting
    Principles.
    
	 
	
    “Cash and Cash Equivalents‘
    	 	
    means, at any time, the sum of:
    

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

3

 

	 	 	 
	
    “Charter‘
    	 	
    means, in respect of any company, corporation,
    partnership, enterprise, governmental agency or other entity,
    its founding act, articles of incorporation and bylaws,
    memorandum and articles of association, contract of association,
    constitutive act, statutes or similar instrument, as applicable,
    and in respect of the Borrower includes, without limitation, the
    Contract of Association and the Statutes.
    
	 
	
    “Citibank Working Capital Agreement‘
    	 	
    means the Working Capital Agreement between
    Citibank Romania S.A. and the Borrower dated March 25, 1999
    pursuant to which Citibank Romania S.A. has agreed to make
    available to the Borrower a credit facility of up to $10,000,000
    on the terms and conditions thereof, as subsequently modified
    from time to time.
    
	 
	
    “ClearWave‘
    	 	
    means ClearWave N.V., a corporation organized and
    existing under the laws of the Netherlands.
    
	 
	
    “ClearWave Holdings‘
    	 	
    means ClearWave Holdings BV, a corporation
    organized and existing under the laws of the Netherlands.
    
	 
	
    “ClearWave’s Majority Shareholder‘
    	 	
    means
    

	 	 	 	 	 
	 	 	
    (i)
    	 	
    Telesystem International Wireless Inc., a
    corporation organised and existing under the laws of Canada, and
    
	 	 	
    (ii)
    	 	
    any Recognised Telecommunications Operator which
    acquires pursuant to Section 4.02(b) of the Share Retention
    and Subordination Deed (either directly or indirectly) an
    Economic Interest or a Controlling Interest of more than 50% in
    ClearWave.
    

	 	 	 
	
    “Compliance Certificate‘
    	 	
    means a certificate substantially in the form of
    Schedule B.
    
	 
	
    “Conditional Discharge‘
    	 	
    has the meaning set out in Section 4.01(q).
    
	 
	
    “Conditional Discharge Escrow Agent‘
    	 	
    means counsel to the Senior Lenders, acting
    pursuant to the Conditional Discharge Escrow Instructions as
    agent on behalf of the Senior Lenders, the EKN Lenders and the
    other parties having the benefit of the Existing Security for
    the purpose of holding in escrow the Conditional Discharge
    delivered in accordance with Section 4.01(q) until receipt
    of the Existing Loans
    

4

 

	 	 	 
	
    
     
    

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

	 	 	 	 	 
	 	 	
    (1)
    	 	
    ClearWave,
    
	 	 	
    (2)
    	 	
    Vodafone,
    
	 	 	
    (3)
    	 	
    any Joint Affiliate, and
    
	 	 	
    (4)
    	 	
    any Recognised Telecommunications Operator which
    acquires pursuant to Section 

5

 

	 	 	 
	
    
     
    

    	 	4.01(c) of the Share Retention and Subordination
    Deed (either directly or indirectly) (i) an Economic
    Interest or a Controlling Interest of more than 50% in the
    Borrower or, (ii) in the case of a transfer, sale or
    assignment by Vodafone, Vodafone’s entire Economic Interest
    and Controlling Interest in the Borrower

	 	 	 
	
    “Cooperation Agreement‘
    	 	
    means the agreement dated November 29, 1996
    between TIWC and Vodafone Europe (formerly Airtouch Europe B.V.)
    entitled “Romanian GSM Co-operation Agreement” in
    respect of shareholdings in the Borrower.
    
	 
	
    “Curative Equity‘
    	 	
    has the meaning set out in Section 5.10(a).
    
	 
	
    “Current Assets‘
    	 	
    means the aggregate (as of the date of
    calculation) of the Borrower’s cash, marketable securities,
    trade and other receivables and inventories realisable within
    one year from such date of calculation and any other items which
    are “current assets” under Generally Accepted
    Accounting Principles.
    
	 
	
    “Current Liabilities‘
    	 	
    means the aggregate (as of the date of
    calculation) of all liabilities of the Borrower falling due on
    demand or within one year, including the portion of Long-term
    Debt falling due within one year.
    
	 
	
    “Debt‘
    	 	
    means, with respect to any person, all
    obligations or liabilities of such person, whether incurred as
    principal or surety and whether present, future, actual or
    contingent, for the payment or repayment of money including
    without limitation payables and accrued expenses and including,
    without limitation:
    

	 	 	 	 	 
	 	 	
    (a)
    	 	
    any amounts payable by such person under capital
    leases or similar arrangements over their respective periods;
    
	 	 	
    (b)
    	 	
    any credit to such person from a supplier of
    goods or under any installment purchase or other similar
    arrangement; and
    
	 	 	
    (c)
    	 	
    any liabilities and obligations of third parties
    to the extent that they are guaranteed by such person or such
    person
    

6

 

	 	 	 
	
    
     
    

    	 	has otherwise assumed or become liable for the
    payment of such liabilities or obligations or to the extent that
    they are secured by any Lien upon property owned by such person
    whether or not such person has assumed or become liable for the
    payment of such liabilities or obligations

	 	 	 
	
    “Declared Amount‘
    	 	
    has the meaning ascribed thereto in
    Section 7.02.
    
	 
	
    “Default Interest Period‘
    	 	
    means, with respect to any amount overdue under
    this Agreement, a period commencing on the day on which such
    payment becomes due or, as the case may be, on the last day of
    the previous Default Interest Period with respect to such
    overdue amount, and ending on a Business Day selected by the
    Bank, acting reasonably.
    
	 
	
    “Deferred Distribution Amount‘
    	 	
    means, in respect of each Financial Year, the
    positive amount, if any, by which
    

	 	 	 	 	 
	 	 	
    (i)
    	 	
    the aggregate of all Distributions which the
    Borrower is permitted to make in respect of such Financial Year
    in accordance with Sections 6.01(a)(3)(A) and
    6.01(a)(3)(B), exceeds
    
	 	 	
    (ii)
    	 	
    the amount of Distributions which the Borrower is
    permitted to make in accordance with Romanian law in such
    Financial Year as notified by the Borrower to the Bank pursuant
    to Section 5.13(l)
    

	 	 	 
	
    “Disbursement‘
    	 	
    means the disbursement of any portion of the Bank
    Loan from time to time pursuant to Section 3.03 or, as the
    context may require, the principal amount thereof from time to
    time outstanding in any Applicable Loan Currency.
    
	 
	
    “Distribution‘
    	 	
    has the meaning set out in Section 6.01.
    
	 
	
    “Distribution Test Period‘
    	 	
    has the meaning set out in Section 6.01(a)(3)(A).
    
	 
	
    “Dollars’ and “$’‘
    	 	
    means the lawful currency of the United States of
    America.
    
	 
	
    “EBITDA”
    	 	
    means, with respect to any period of calculation,
    earnings before interest, tax, depreciation and
    

7

 

	 	 	 
	
    
     
    

    	 	amortisation, calculated as (for such period of
    calculation) the sum of: (1) the net income (or deficit) of
    the Borrower (less extraordinary gains plus extraordinary
    losses) for such period; plus (2) translation losses less
    translation gains for such period; plus (3) income tax and
    provisions for income tax for such period; plus (4) Net
    Interest Expense for such period; plus (5) all amounts in
    respect of depreciation and amortisation for such period, all
    calculated in accordance with Generally Accepted Accounting
    Principles.
	 
	
    “Economic Interest‘
    	 	
    means a percentage legal and beneficial ownership
    interest held by a person in the aggregate of all classes of the
    issued and outstanding share capital of another person.
    
	 
	
    “EDC”
    	 	
    means Export Development Canada.
    
	 
	
    “EDC Loan‘
    	 	
    means the loan to be provided by EDC to the
    Borrower pursuant to the EDC Loan Agreement.
    
	 
	
    “EDC Loan Agreement‘
    	 	
    means the loan agreement dated on or about the
    date hereof between EDC and the Borrower.
    
	 
	
    “EKN Lenders‘
    	 	
    means, collectively, all financial institutions
    which are parties, as lenders, to the Existing EKN Loan
    Agreement on the date hereof.
    
	 
	
    “Electronic Archive‘
    	 	
    means the Romanian electronic registry of
    security interests in personal property established and
    organised pursuant to the Romanian Security Law.
    
	 
	
    “Employee Personal Guarantee Accounts‘
    	 	
    means the bank accounts of the Borrower which
    from time to time are required under Romanian law to be opened
    in connection with the granting of guarantees by employees of
    the Borrower which are involved in controlling inventory, which
    accounts are held with banks in Romania which are duly
    authorized under Romanian law to hold such accounts.
    
	 
	
    “EURIBOR”
    	 	
    means, for each Interest Period, the offered rate
    per annum for deposits in Euro which appears on the Euro
    Reference Page as of 11:00 a.m. Brussels time, on the
    relevant Interest Determination Date for the period which is
    closest to the duration of such Interest Period (or,
    

8

 

	 	 	 
	
    
     
    

    	 	if two periods are equally close to the duration
    of such Interest Period, the average of the two relevant rates);
    provided that:

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

	 	 	 
	
    
    “Euro‘
    

    	 	
    means the lawful currency of the member states of
    the European Union that adopt the single currency in accordance
    with the Treaty Establishing the European Community, as amended
    by the Treaty on European Union.
    
	 
	
    
    “Euro Exchange Rate‘
    

    	 	
    means, in respect of any portion of the A Loan
    converted into a Euro Loan pursuant to Section 3.06, the
    rate of exchange of Euro to Dollars available to the Bank on the
    international foreign exchange market (and notified to the
    Borrower) two (2) Business Days prior to the applicable Euro
    Loan Conversion Date.
    
	 
	
    
    “Euro Loan‘
    

    	 	
    has the meaning set out in Section 3.06.
    
	 
	
    
    “Euro Loan Conversion Date‘
    

    	 	
    has the meaning set out in Section 3.06(2).
    
	 
	
    
    “Euro Reference Page‘
    

    	 	
    means the display of Euro-zone interbank offered
    rates for deposits in Euro designated as page 248 on Telerate
    (or such other page as may replace
    

9

 

	 	 	 
	
    
     
    

    	 	page 248 on Telerate for the purpose of
    displaying Euro-zone interbank offered rates for deposits in
    Euro).
	 
	
    “Event of Default‘
    	 	
    means any one of the events or occurrences
    specified in Section 7.01.
    
	 
	
    “Excess Cash Flow‘
    	 	
    means, with respect to any period of calculation,
    the greater of
    

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

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

	 	 	 
	
    “Excess Cash Mandatory Repayment Date‘
    	 	
    has the meaning set out in Section 3.10(d).
    
	 
	
    “Existing Bank Loan Agreement‘
    	 	
    means the amended and restated loan agreement
    dated January 20, 1999 between the Borrower and the Bank,
    as amended.
    
	 
	
    “Existing EDC Loan Agreement‘
    	 	
    means the amended and restated loan agreement
    dated January 20, 1999 between the Borrower and EDC, as
    amended.
    

10

 

	 	 	 
	
    
    “Existing EKN Loan Agreement‘
    

    	 	
    means the credit facility agreement dated
    January 20, 1999, as amended, between the EKN Lenders, ABN
    AMRO Bank N.V., as arranger, facility agent and security agent
    for the EKN Lenders and the Borrower pursuant to which the EKN
    Lenders have provided to the Borrower a credit facility in an
    aggregate principal amount of $65,000,000.
    
	 
	
    
    “Existing Loan Agreements‘
    

    	 	
    means, collectively, the Existing Bank Loan
    Agreement, the Existing EDC Loan Agreement, the Existing NIB
    Loan Agreement, the Existing EKN Loan Agreement and the Existing
    Subordinated Loan Agreement.
    
	 
	
    
    “Existing Loans‘
    

    	 	
    means the loans made to the Borrower under the
    Existing Loan Agreements.
    
	 
	
    
    “Existing Loans Indebtedness‘
    

    	 	
    means the aggregate principal amount of the
    Existing Loans from time to time outstanding and all interest,
    expenses, fees and other amounts owing to the Senior Lenders and
    the EKN Lenders under the Existing Loan Agreements and the
    Financing Agreements (as defined in the Existing Bank Loan
    Agreement).
    
	 
	
    
    “Existing Loans Repayment Confirmations‘
    

    	 	
    means the confirmations provided by UBS AG
    (London Branch) (as agent on behalf of the Senior Lenders) and
    ABN AMRO Bank N.V. (as agent on behalf of, inter alia,
    the EKN Lenders) to the Borrower and the Conditional Discharge
    Escrow Agent pursuant to which such agents confirm receipt of
    payment representing full repayment of the Existing Loans
    Indebtedness, which confirmations shall be in the form of
    Annexes A and B to the Conditional Discharge Escrow Instructions.
    
	 
	
    
    “Existing Loans Repayment Date‘
    

    	 	
    means the date on which the “Payment
    Time‘ (as defined in the Conditional Discharge Escrow
    Instructions) occurs.
    
	 
	
    
    “Existing NIB Loan Agreement‘
    

    	 	
    means the amended and restated loan agreement
    dated January 20, 1999, between the Borrower and NIB, as
    amended.
    
	 
	
    
    “Existing Security‘
    

    	 	
    means the security created pursuant to the
    Security Documents (as defined in the Existing Bank Loan
    Agreement) to secure, inter alia, the Borrower’s
    obligations to the Senior Lenders under the Existing Loan
    Agreements and the
    

11

 

	 	 	 
	
    
     
    

    	 	other Financing Agreements (as defined in the
    Existing Bank Loan Agreement).
	 
	
    
    “Existing Security Discharge Date‘
    

    	 	
    means the date on which the Existing Security has
    been fully discharged to the satisfaction of the Senior Lenders.
    
	 
	
    
    “Existing Subordinated Loan Agreement‘
    

    	 	
    means the amended and restated subordinated loan
    agreement between the Borrower and the Bank dated
    January 28, 1999 pursuant to which the Bank made available
    to the Borrower, subject to the terms and conditions therein,
    $10 million in subordinated debt.
    
	 
	
    
    “Financial Debt‘
    

    	 	
    means any Debt for, or in respect of:
    

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

12

 

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

	 	 	 
	
    
    “Financial Statements‘
    

    	 	
    means the financial statements (including a
    balance sheet, income statement, cash flow statement and
    statement of changes in equity, and notes thereon) of the
    Borrower prepared in accordance with Generally Accepted
    Accounting Principles if prepared in Dollars and in accordance
    with RAS if prepared in Lei.
    
	 
	
    
    “Financial Year‘
    

    	 	
    means the period commencing each year on
    January 1, and ending on the following December 31, or
    such other period as the Borrower may, with the Bank’s
    consent, from time to time designate as the accounting year of
    the Borrower.
    
	 
	
    
    “Financing Agreements‘
    

    	 	
    means, collectively:
    

	 	 	 	 	 
	 	 	
    (a)
    	 	
    this Agreement;
    
	 	 	
    (b)
    	 	
    the EDC Loan Agreement;
    
	 	 	
    (c)
    	 	
    the NIB Loan Agreement;
    
	 	 	
    (d)
    	 	
    the Agency Agreement;
    

13

 

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

	 	 	 
	
    
    “Free Cash Flow‘
    

    	 	
    means, for any period of calculation, EBITDA
    minus income tax paid, minus increases (or plus decreases) in
    Working Capital during such period minus all Capital
    Expenditures and UMTS License Costs for such period.
    
	 
	
    
    “Generally Accepted Accounting
    Principles‘
    

    	 	
    means accounting principles as generally accepted
    in the United States of America with respect to the preparation
    of financial statements, as consistently applied.
    
	 
	
    
    “GSM”
    

    	 	
    means the global system for wireless mobile
    communications as defined by the International
    Telecommunications Union.
    
	 
	
    
    “GSM License‘
    

    	 	
    means the license for provision in Romania of GSM
    telecommunications services as granted on November 29, 1996
    to the Borrower by the Ministry as amended and restated on
    

14

 

	 	 	 
	
    
     
    

    	 	December 16, 1998, which license terminates
    no earlier than November 29, 2011, as such license may be
    further amended, supplemented, restated, novated or assigned
    from time to time.
	 
	
    
    “Hedge Provider‘
    

    	 	
    means any financial institution which is a
    counterparty under any Hedging Agreement with the Borrower.
    
	 
	
    
    “Hedging Agreements‘
    

    	 	
    means any agreements entered into by the Borrower
    for the purpose of interest rate or currency hedging, which are
    permitted under Section 6.04, which comply with the Hedging
    Plan and which are based on ISDA documentation.
    
	 
	
    
    “Hedging Plan‘
    

    	 	
    means the plan of the Borrower with respect to
    interest rate and currency hedging, which plan is agreed to by
    the Senior Lenders.
    
	 
	
    
    “High Yield Related Prepayment
    Proportion‘
    

    	 	
    means, at any time, with respect to any Permitted
    High Yield Back to Back Debt, the proportion, expressed as a
    percentage, of (a) the aggregate amount of principal of any
    Senior Loan prepaid or required to be prepaid pursuant to
    Section 3.10(f) of this Agreement, Section 3.09(f) of
    the EDC Loan Agreement or Section 3.09(f) of the NIB Loan
    Agreement in connection with the issuance of such Permitted High
    Yield Back to Back Debt, divided by (b) the aggregate
    principal amount of all Senior Loans outstanding immediately
    prior to such prepayment.
    
	 
	
    
    “Immovables Hypothec‘
    

    	 	
    means an instrument, in form and substance
    acceptable to the Bank, pursuant to which the Borrower grants to
    the Secured Parties a first ranking hypothec over immovable
    tangible assets of the Borrower as set forth in
    Section 5.07(c), together with the title deeds for such
    assets.
    
	 
	
    
    “Insurance Assignment‘
    

    	 	
    means the instrument between the Borrower and the
    Secured Parties pursuant to which the Borrower’s rights,
    interests, and benefits in the insurance relating to the
    Borrower’s assets and business are assigned to the Secured
    Parties, for the purpose of securing, inter alia, the
    obligations of the Borrower hereunder, which instrument shall be
    in form and substance satisfactory to the Bank.
    

15

 

	 	 	 
	
    
    “Interest Determination Date‘
    

    	 	
    means, for any Interest Period, the date two
    Business Days prior to the first day of such Interest Period.
    
	 
	
    
    “Interest Payment Date‘
    

    	 	
    means January 14, April 14,
    July 14 and October 14 in any year; provided, however,
    that, if any Interest Payment Date would otherwise fall on a day
    which is not a Business Day, such Interest Payment Date shall be
    changed to the next succeeding Business Day.
    
	 
	
    
    “Interest Period‘
    

    	 	
    means, (i) for any Disbursement, the period
    commencing on the date of such Disbursement and ending on the
    next Interest Payment Date and each period of three months
    thereafter commencing on an Interest Payment Date and ending on
    the next Interest Payment Date; and (ii) for any Euro Loan,
    the period commencing on the Euro Loan Conversion Date
    applicable to such Euro Loan and ending on the next Interest
    Payment Date and each period of three months thereafter
    commencing on an Interest Payment Date, provided that, in each
    case, if such Disbursement or Euro Loan Conversion Date, as
    applicable, takes place less than 15 Business Days prior to the
    next Interest Payment Date, the first Interest Period for such
    Disbursement or Euro Loan, as applicable, shall commence on the
    date of such Disbursement or on such Euro Loan Conversion Date,
    as applicable, and end on the Interest Payment Date following
    the next Interest Payment Date.
    
	 
	
    
    “Joint Affiliate‘
    

    	 	
    means any person that owns (directly or
    indirectly) any Economic Interest or Controlling Interest in the
    Borrower and that meets each of the following conditions:
    

	 	 	 	 	 
	 	 	
    (a)
    	 	
    the Controlling Shareholders own (directly or
    indirectly through their Controlled Affiliates) an Economic
    Interest of not less than 75% in such person;
    
	 	 	
    (b)
    	 	
    the Controlling Shareholders own (directly or
    indirectly through their Controlled Affiliates) a Controlling
    Interest of not less than 75% in such person; and
    

16

 

	 	 	 	 	 
	 	 	
    (c)
    	 	
    the Controlling Shareholders (directly or
    indirectly through their Controlled Affiliates) at all times
    maintain and exercise Management Control over such person
    

	 	 	 
	
    
    “Law‘
    

    	 	
    means any law, code, statute, treaty, ordinance,
    decree, order, rule, regulation, norms or other such
    governmental, legislative, or judicial determination.
    
	 
	
    
    “Lei‘
    

    	 	
    means the lawful currency of Romania.
    
	 
	
    
    “LIBOR”
    

    	 	
    means, for each Interest Period, the offered rate
    per annum for deposits in Dollars which appears on Telerate Page
    3750 as of 11:00 a.m., London time, on the relevant
    Interest Determination Date for the period which is closest to
    the duration of such Interest Period (or, if two periods are
    equally close to the duration of such Interest Period, the
    average of the two relevant rates); provided that:
    

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

17

 

	 	 	 
	
    
    “Licenses‘
    

    	 	
    means the GSM License and, at all times from and
    after the acquisition by the Borrower of the UMTS License, the
    UMTS License.
    
	 
	
    
    “Lien‘
    

    	 	
    means any mortgage, pledge, charge, privilege,
    priority, hypothecation, encumbrance, assignment, lien,
    attachment, set-off or other security interest of any kind or
    any other agreement or arrangement having the effect of
    conferring security upon or with respect to, or any segregation
    of or other preferential arrangement with respect to, any
    present or future assets, revenues or rights, including, without
    limitation, any designation of loss payees or beneficiaries or
    any similar arrangement under any insurance policy.
    
	 
	
    
    “Loan Currency‘
    

    	 	
    means the currency in which any portion of the
    Bank Loan is made, being Dollars or Euro.
    
	 
	
    
    “Long-term Debt‘
    

    	 	
    means, as of any date and with respect to any
    person, any Debt of such person all or part of which, or the
    final payment of which, is due more than one year after such
    date.
    
	 
	
    
    “Major Leases‘
    

    	 	
    means the lease agreements listed in
    Schedule A hereto and any other lease agreements entered
    into by the Borrower pursuant to which the Borrower obtains and
    occupies land or premises other than any other Site Agreement.
    
	 
	
    
    “Management Control‘
    

    	 	
    means the right or capacity, whether exercised or
    not, of a person to directly or indirectly exercise control or
    direction over the management, board of directors or assembly of
    shareholders (or similar such governing bodies) of another
    person by virtue of the person holding a Controlling Interest in
    the other person of more than 50% provided such Controlling
    Interest held by the person is sufficient, if exercised, to
    allow such direct or indirect control or direction of the other
    person.
    
	 
	
    
    “Margin‘
    

    	 	
    means three and one-half percent (3.5%) per
    annum, as adjusted in accordance with Section 3.07(g).
    
	 
	
    
    “Margin Determination Date‘
    

    	 	
    has the meaning set out in Section 3.07(g).
    
	 
	
    
    “Material Agreements‘
    

    	 	
    means the agreements listed in Schedule A
    hereto and any other agreement entered into by the
    

18

 

	 	 	 
	
    
     
    

    	 	Borrower after the date hereof which satisfies
    the criteria specified in Section 2.02(g).
	 
	
    
    “Minimum Cash Balance‘
    

    	 	
    means, at any time, the USD Equivalent Amount of
    the greater of (a) Total Financial Debt Service of the
    Borrower for the period commencing at such time and ending
    183 days thereafter; and (b) $10,000,000.
    
	 
	
    
    “Ministry‘
    

    	 	
    means the Ministry of Communications and
    Information Technology of Romania and any successor thereto, and
    any other Romanian governmental or administrative authority that
    has the powers to regulate the telecommunications sector in
    Romania.
    
	 
	
    
    “Net Interest Expense‘
    

    	 	
    means (for the period of calculation) the
    interest charges accrued during such period on the Financial
    Debt of the Borrower (including imputed interest on any capital
    lease obligations), less the interest income accrued by the
    Borrower on its Current Assets.
    
	 
	
    
    “Network‘
    

    	 	
    means the Borrower’s GSM network and (at all
    times from and after the date the Borrower acquires the UMTS
    License) the Borrower’s UMTS network.
    
	 
	
    
    “NIB”
    

    	 	
    means Nordic Investment Bank.
    
	
    
    “NIB Loan‘
    

    	 	
    means the loan to be provided by NIB to the
    Borrower pursuant to the NIB Loan Agreement.
    
	 
	
    
    “NIB Loan Agreement‘
    

    	 	
    means the loan agreement dated on or about the
    date hereof between NIB and the Borrower.
    
	 
	
    
    “Offshore Accounts Charge‘
    

    	 	
    means the instrument pursuant to which the
    Borrower grants to the Secured Parties and the Working Capital
    Lenders a charge over certain roaming revenues in offshore
    accounts, for the purpose of securing, inter alia, the
    obligations of the Borrower hereunder, which instrument shall be
    in form and substance satisfactory to the Bank.
    
	 
	
    
    “Operating Shareholders‘
    

    	 	
    means, collectively, (i) the Controlling
    Shareholders, (ii) any Controlled Affiliates of the
    Controlling Shareholders that own an Economic Interest or a
    Controlling Interest in the Borrower from time to time (directly
    or indirectly through Controlled Affiliates of such parties or
    through a Joint Affiliate) and (iii) ClearWave’s Majority
    

19

 

	 	 	 
	
    
     
    

    	 	Shareholder and any Controlled Affiliates of
    ClearWave’s Majority Shareholder that own an Economic
    Interest or a Controlling Interest in ClearWave from time to
    time.
	 
	
    
    “Orange Romania‘
    

    	 	
    means Orange Romania S.A., a company organised
    and existing under the laws of Romania.
    
	 
	
    
    “Orange Romania Interconnection
    Agreement‘
    

    	 	
    means the agreement between Orange Romania and
    the Borrower, dated 12 May 1999, as amended by additional acts
    dated 28 May 1999 and 9 October 2000.
    
	 
	
    
    “Participant‘
    

    	 	
    means a person from whom the Bank receives a
    formal commitment to acquire a Participation in the B Loan.
    
	 
	
    
    “Participation‘
    

    	 	
    means a participation in the B Loan, or as the
    context may require, in a Disbursement of the B Loan.
    
	 
	
    
    “Participation Agreement‘
    

    	 	
    means an agreement between the Bank and a
    Participant pursuant to which the Participant acquires a
    Participation in the B Loan.
    
	 
	
    
    “Permitted High Yield Back to Back Debt‘
    

    	 	
    has the meaning set out in the Share Retention
    and Subordination Deed.
    
	 
	
    
    “Permitted Liens‘
    

    	 	
    means the Liens referred to in Section 6.03(1)
    through (5).
    
	 
	
    
    “Permitted Quasi Equity‘
    

    	 	
    has the meaning set out in the Share Retention
    and Subordination Deed.
    
	 
	
    
    “Permitted Treasury Instruments‘
    

    	 	
    means investments of the Borrower in:
    

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

	 	 	 
	 	 	
    in each case with residual maturity of 90 days or
    less, provided that such securities are held by the Borrower
    with reputable financial institutions solely for the purpose of
    giving temporary employment to the Borrower’s cash
    resources.
    

20

 

	 	 	 
	
    “Potential Event of Default‘
    	 	
    means any event which, with the giving of notice,
    the passage of time or the making of any determination, or any
    combination thereof, would become an Event of Default.
    
	 
	
    “Project‘
    	 	
    means the continued design, construction,
    equipping, operation (and placing into operation of), and the
    provision of working capital for, the Borrower’s Network
    located in Romania as contemplated under the terms of the
    Licenses and includes the acquisition of the UMTS License.
    
	 
	
    “Project Agreements‘
    	 	
    means:
    

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

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

21

 

	 	 	 
	
    “Public Secondary Sale‘
    	 	
    means, in respect of any person, any offering and
    sale by holders of equity securities in such person of any such
    equity securities where such equity securities are
    (i) listed, or to be listed following such offering, on any
    internationally recognised stock exchange, including (in case of
    equity securities of the Borrower) the Bucharest stock exchange,
    or (ii) sold pursuant to a prospectus under Canadian
    securities laws or pursuant to a registration statement under
    the United States Securities Act of 1933.
    
	 
	
    “Quarter Dates‘
    	 	
    means 31 March, 30 June, 30 September and 31
    December in any year.
    
	 
	
    “Quarterly Period‘
    	 	
    means each successive period of three calendar
    months commencing on the day after a Quarter Date and ending on
    the next following Quarter Date.
    
	 
	
    “RAS”
    	 	
    means accounting standards generally accepted in
    Romania including the International Accounting Standards
    promulgated by the International Accounting Standards Committee
    as adjusted by Order No. 94 of 2001 of the Ministry of
    Finance of Romania, consistently applied.
    
	 
	
    “Recognised Telecommunications Operator‘
    	 	
    has the meaning set out in the Share Retention
    and Subordination Deed.
    
	 
	
    “Romanian Security Law‘
    	 	
    means the law of Romania relating to security
    interests in personal property enacted under Title VI of Law
    Number 99/1999 as the same may be supplemented, amended,
    modified, republished or re-enacted from time to time.
    
	 
	
    “Romtelecom‘
    	 	
    means S.N.T. Romtelecom S.A., the national
    telecommunications service provider in Romania.
    
	 
	
    “Romtelecom Interconnection Agreement‘
    	 	
    means the interconnection agreement dated
    August 6, 1997 entered into between the Borrower and
    Romtelecom, in respect of the interconnection between the
    Borrower’s Network and Romtelecom’s network as amended
    by additional acts dated 12 March 1998, 2 May 1999 and 30 July
    1999, and any ministerial decrees, ordinances or orders issued
    after the date hereof, in respect of such interconnection in
    form and substance acceptable to the Bank.
    

22

 

	 	 	 
	
    “Secured Parties‘
    	 	
    means the Senior Lenders and each person which is
    a Hedge Provider from time to time.
    
	 
	
    “Security‘
    	 	
    means the security created or agreed to be
    created pursuant to the Security Documents to secure, inter
    alia, all amounts owing to the Senior Lenders under the
    Financing Agreements.
    
	 
	
    “Security Agreement Over Accounts‘
    	 	
    means the Security Agreement Over Accounts
    between the Secured Parties, the Borrower and such Working
    Capital Lenders, Collection Banks and Claims Agents (in each
    case as defined therein) as may be parties thereto in such
    capacity from time to time in respect of the Borrower Accounts
    held with banks in Romania, securing, inter alia, the
    obligations of the Borrower hereunder, which agreement shall be
    in form and substance satisfactory to the Bank.
    
	 
	
    “Security Agreement Over Movables‘
    	 	
    means the instrument pursuant to which the
    Borrower grants to the Secured Parties a security interest in
    all of the Borrower’s tangible and intangible movable
    assets including, without limitation, the Borrower’s
    enterprise and all of the Borrower’s present and future
    intangible assets and contractual rights and claims (including
    without limitation accounts receivable) and tangible movable
    assets (including without limitation all of the Borrower’s
    equipment, machinery, raw materials, inventory and work in
    progress) together with the annexes, notices and
    acknowledgements and consents in the forms attached thereto,
    which instrument shall be in form and substance satisfactory to
    the Bank.
    
	 
	
    “Security Agreement Over Shares‘
    	 	
    means the instrument pursuant to which the
    Shareholders grant a security interest in favour of the Secured
    Parties over issued and outstanding shares of the Borrower, and
    any supplements, amendments, or additional security instruments
    entered into pursuant thereto, together with the original share
    certificates representing all such shares, for the purpose of
    securing, inter alia, the obligations of the Borrower
    hereunder, which instrument shall be in form and substance
    satisfactory to the Bank.
    
	 
	
    “Security Documents‘
    	 	
    means:
    

	 	 	 	 	 
	 	 	
    (a)
    	 	
    the Security Agreement Over Movables;
    

23

 

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

	 	 	 
	
    “Security Sharing and Intercreditor
    Agreement‘
    	 	
    means the security sharing and intercreditor
    agreement dated on or about the date hereof entered into between
    the Senior Lenders and any Hedge Provider and Working Capital
    Lender which may become party to it from time to time, and any
    other party thereto from time to time providing for, inter
    alia, sharing of the Security and any other security
    interest created in favour of the parties thereto (from time to
    time) to secure any amounts owing by the Borrower to such
    parties.
    
	 
	
    “Senior Debt to EBITDA Ratio‘
    	 	
    means, for any period of calculation, the result
    of the aggregate principal amount of the Senior Loans
    outstanding as of the last day of such period divided by EBITDA
    for such period.
    
	 
	
    “Senior Debt Service‘
    	 	
    means the aggregate, for any period of
    calculation, of all scheduled repayments of
    

24

 

	 	 	 
	
    
     
    

    	 	principal and all interest and fees (other than
    fees payable in connection with the entering into of the Senior
    Loan Agreements) paid or due and owing in such period under or
    in respect of the Senior Loans.
	 
	
    “Senior Debt Service Coverage Ratio‘
    	 	
    means the result of Free Cash Flow in any period
    of calculation divided by Senior Debt Service for such period of
    calculation.
    
	 
	
    “Senior Lenders‘
    	 	
    means, collectively, the Bank, EDC and NIB.
    
	 
	
    “Senior Loans‘
    	 	
    means, collectively, the Bank Loan, the EDC Loan
    and the NIB Loan or, as the context may require, the aggregate
    principal amount thereof from time to time outstanding.
    
	 
	
    “Senior Loan Agreements‘
    	 	
    means, collectively, this Agreement, the EDC Loan
    Agreement and the NIB Loan Agreement.
    
	 
	
    “Share Retention and Subordination Deed‘
    	 	
    means the agreement between the Borrower, the
    Operating Shareholders and the Senior Lenders pursuant to which
    the Operating Shareholders agree, inter alia, (i) to
    certain restrictions on their ability to effect changes in their
    equity interest in, or transfer shares in the capital of, the
    Borrower without the prior written consent of the Senior
    Lenders, and (ii) to subordinate the payment of any amounts
    payable by the Borrower to them to all amounts payable by the
    Borrower to the Senior Lenders, which agreement shall be in form
    and substance satisfactory to the Bank.
    
	 
	
    “Shareholders’ Equity‘
    	 	
    means the aggregate of (i) the
    shareholders’ equity of the Borrower, calculated in
    accordance with Generally Accepted Accounting Principles
    (excluding, for the purposes of such calculation comprehensive
    income adjustments to the shareholders’ equity of the
    Borrower made in accordance with Financial Accounting Standard
    133 and amendments thereto as issued from time to time by the
    Financial Accounting Standards Board of the United States), and
    (ii) the principal amount of all Permitted Quasi Equity.
    
	 
	
    “Shareholder Power of Attorney‘
    	 	
    means the power of attorney granted by each
    Shareholder to the Senior Lenders in respect of the Financing
    Agreements, in form and substance satisfactory to the Senior
    Lenders.
    

25

 

	 	 	 
	
    “Shareholders‘
    	 	
    means Vodafone Europe, ClearWave Holdings, Deraso
    Holding B.V., Dargate Limited, Devaynes Holdings Limited, Upson
    Enterprises Limited and Commercial Capital Emerging Markets
    Limited, their successors and permitted assigns and any other
    person at any time owning shares in the capital of the Borrower.
    
	 
	
    “Sites‘
    	 	
    means all land or buildings in Romania over which
    the Borrower holds, as the case may be, an ownership interest,
    freehold interest, leasehold interest, easement, concession,
    right of use or other right or interest in connection with the
    operation of the Borrower’s Network.
    
	 
	
    “Site Agreement‘
    	 	
    means each lease agreement, easement agreement,
    concession or use agreement, or other contract entered into by
    the Borrower creating the right of the Borrower to occupy and
    utilise a Site for the purpose of operation of the
    Borrower’s Network.
    
	 
	
    “Statutes‘
    	 	
    means the statutes of the Borrower dated
    November 22, 1996, as amended by additional acts approved
    prior to the date hereof and registered in the Trade Register in
    Bucharest, Romania, among the Shareholders, regarding, inter
    alia, the establishment and shareholdings of the Borrower.
    
	 
	
    “Subordinated Debt‘
    	 	
    means Permitted High Yield Back to Back Debt or
    Permitted Quasi Equity.
    
	 
	
    “Subsidiary‘
    	 	
    means, with respect to any entity, any other
    entity over 50% of whose capital is owned, directly or
    indirectly, by such entity or which is otherwise effectively
    controlled by such entity.
    
	 
	
    “Telerate Page 3750‘
    	 	
    means the display of London Interbank offered
    rates of major banks for deposits in Dollars designated as page
    3750 on the Dow Jones Telerate Service (or such other page as
    may replace page 3750 on the Dow Jones Telerate Service for the
    purpose of displaying London Interbank offered rates for
    deposits in Dollars).
    
	 
	
    “TIWC”
    	 	
    means Telesystem International Wireless
    Corporation N.V., a corporation organised and existing under the
    laws of the Netherlands.
    

26

 

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

27

 

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

28

 

	 	 	 
	
    “UMTS”
    	 	
    means the universal mobile telecommunications
    system known as International Telecommunications Union standard
    IMT-2000.
    
	 
	
    “UMTS License‘
    	 	
    means the license for the provision in Romania of
    UMTS telecommunications services that may be granted to the
    Borrower by the Ministry, as such license may be amended,
    supplemented, restated, novated or assigned from time to time.
    
	 
	
    “UMTS License Compliance‘
    	 	
    occurs upon achievement by the Borrower of all
    material terms and conditions of the UMTS License.
    
	 
	
    “UMTS License Costs‘
    	 	
    means license fees and other expenses paid or
    payable by the Borrower in connection with the acquisition of
    the UMTS License.
    
	 
	
    “USD Equivalent Amount‘
    	 	
    means, in respect of any amount denominated in
    any currency, the equivalent, in Dollars, of such amount
    calculated by reference to the rate of exchange available to the
    Bank on the international foreign exchange market (and notified
    to the Borrower) two (2) Business Days prior to the date of
    determination.
    
	 
	
    “Vodafone‘
    	 	
    means at any time
    

	 	 	 	 	 
	 	 	
    (i)
    	 	
    any Controlled Affiliate of Vodafone Group Plc
    that owns directly an Economic Interest or a Controlling
    Interest in the Borrower or in a Joint Affiliate, or
    
	 	 	
    (ii)
    	 	
    if the combined Economic Interest or Controlling
    Interest in the Borrower owned (directly or indirectly) by
    Vodafone Group Plc or one or more Controlled Affiliates of
    Vodafone Group Plc or a Joint Affiliate is greater than the
    Economic Interest and Controlling Interest of ClearWave in the
    Borrower at such time, Vodafone Group Plc and any Controlled
    Affiliate of Vodafone Group Plc that owns directly an Economic
    Interest or a Controlling Interest in the Borrower or in a Joint
    Affiliate
    

	 	 	 
	
    “Vodafone Europe‘
    	 	
    means Vodafone Europe B.V., a corporation
    organized and existing under the laws of the Netherlands.
    
	 
	
    “Vodafone Technical‘
    	 	
    means Vodafone Technical Services, a corporation
    organized and existing under the laws
    

29

 

	 	 	 
	
    
     
    

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

Section 1.02  Interpretation

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

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

30

 

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

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

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

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

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

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

31

 

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

ARTICLE II — REPRESENTATIONS AND
WARRANTIES

Section 2.01  Representations
Regarding the Project

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

Section 2.02  Representations
Regarding the Borrower

The Borrower represents and warrants as follows:

		
	(a)	
    Incorporation. The
    Borrower is a joint stock company duly organized and validly
    existing under the laws of Romania and registered with all
    relevant registration bodies in Romania and has full power to
    own the properties which it owns or will own for the purposes of
    the Project and to carry out the businesses which it carries out
    or will carry out for the purposes of the Project.
    
	 
	(b)	
    Conduct of Business and Subsidiaries.
    The Borrower conducts no business
    other than the implementation and operation of the Project and
    has no Subsidiaries.
    

		
	(c)	
    Share Capital. The
    Borrower has an authorised and issued capital of 200,279,767
    shares with a nominal value of 10,000 Lei each. The following is
    a list of all shareholders in the Borrower, with their
    respective shareholdings, as of the date of this Agreement:
    

32

 

Borrower’s Shareholding
Structure

	 	 	 	 	 	 	 	 	 
			Percentage of Shareholding		Number of Shares
			
		

	
    
    ClearWave Holdings
    

    	 	 	63.541%	 	 	 	127,260,860	 
	
    
    Vodafone Europe
    

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

    	 	 	14.4%	 	 	 	28,840,286	 
	
    
    Dargate Limited
    

    	 	 	0.9%	 	 	 	1,802,516	 
	
    
    Devaynes Holdings Limited
    

    	 	 	0.526%	 	 	 	1,052,631	 
	
    
    Upson Enterprises Limited
    

    	 	 	0.276%	 	 	 	552,632	 
	
    
    Commercial Capital Emerging Markets Limited
    

    	 	 	0.257%	 	 	 	514,609	 
	 	 	 	
	 	 	 	
	 
	
    
    Total
    

    	 	 	100.0%	 	 	 	200,279,767	 
	 	 	 	
	 	 	 	
	 

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

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

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

		
	(f)	
    Title to Assets. The
    Borrower has good and marketable legal title to all moveable
    property of every kind whatsoever to which the Security
    Agreement Over Movables applies. The Borrower does not own any
    immovable property. The Borrower’s assets are not subject
    to any Lien and the Borrower is not subject to any contract,
    

33

 

		
	 	
     arrangement or law, whether conditional or
    unconditional, pursuant to which any Lien on its assets may be
    created, except for Permitted Liens.
    

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

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

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

		
	(i)	
    No Default. The
    Borrower is not in default under any Material Agreement or other
    material obligation or duty by which it or any of its properties
    or assets is bound, and there exists no Event of Default and no
    Potential Event of Default.
    
	 
	(j)	
    Environmental Compliance.
    The Borrower and its businesses,
    operations, assets, equipment, property, leaseholds and other
    facilities are in compliance with the provisions of all
    applicable material environmental, health and safety laws. The
    Borrower has been issued with, or has applied for, all material
    required permits, licenses, certificates and approvals relating
    to, and has received no material complaint, order, directive,
    claim, citation or notice from any governmental authority or
    other person with respect to, air emissions, discharges to
    surface water or ground water, noise emissions, solid or liquid
    waste disposal, the use, generation, storage, transportation or
    disposal of toxic or hazardous substances or wastes or other
    environmental, health or safety matters. To the knowledge of the
    Borrower (having made all reasonable enquiries), there is no
    contamination on any Site and each is suitable for the
    implementation of the Project.
    

		
	(k)	
    Litigation. The
    Borrower is not engaged in, or, to the best of its knowledge,
    threatened by, any litigation, arbitration or administrative
    proceeding, the outcome of
    

34

 

which might have a material adverse effect on the
Project, the Borrower’s business, operations or financial
condition or the ability of the Borrower to perform any of its
obligations under any Financing Agreement or Project Agreement.

		
	(l)	
    Project. The
    Borrower has obtained all material governmental or regulatory
    licenses, approvals, consents, notarizations, permits, rulings,
    filings or registrations at any local, regional, municipal,
    republic or other levels of government required for the
    implementation and completion of the Project and the carrying on
    of the business of the Borrower as presently conducted or as
    contemplated thereby, and all such licenses, approvals,
    consents, filings, permits, rulings, notarizations and
    registrations were made or obtained and remain valid as at the
    date hereof and the Borrower has no reason to believe at the
    date hereof that such licenses, approvals, consents, permits,
    rulings, notarizations, filings or registrations will be
    rescinded, cancelled or suspended.
    
	 
	(m)	
    Head Office. The
    Borrower’s head office and the office at which it keeps its
    records concerning the Financing Agreements, Project Agreements
    and other Material Agreements is at Bucharest, Romania.
    
	 
	(n)	
    Insurance. The
    factual information contained in all written information
    supplied by or at the direction of the Borrower to its insurers
    (or otherwise made available to such insurers) in connection
    with the Borrower’s business and the Project, as updated
    from time to time, to the best of the Borrower’s knowledge
    after due inquiry, is true and accurate in all material respects
    as of the date hereof and the Borrower is not aware of any facts
    or circumstances that have not been disclosed to those insurers
    that might reasonably be expected, if so disclosed, to adversely
    affect the nature or extent of the coverage to be provided under
    the insurance.
    

Section 2.03  Representations
Regarding the Agreements

The Borrower represents and warrants as follows:

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

			
	 	(1)	
    will not result in the violation of the
    Borrower’s Charter or any provision contained in any Law
    applicable to the Borrower;
    
	 
	 	(2)	
    will not conflict with or result in the breach of
    any provision of, or require any consent under, or result in the
    imposition of any Lien under, any agreement or
    

35

 

		
	 	
     instrument to which the Borrower is a party or
    by which the Borrower or any of its assets is bound; and
    

			
	 	(3)	
    will not constitute a default or an event which,
    with the giving of notice, the passage of time or the making of
    any determination, or any combination thereof, would constitute
    a default under any such agreement or instrument.
    

		
	(c)	
    Governmental Approvals.
    No governmental licenses, approvals,
    consents, rulings, permits, filings or registrations are
    required for the due execution, delivery or performance by the
    Borrower of any Financing Agreement, Project Agreement, or the
    validity or enforceability thereof other than (i) any
    licenses, approvals, consents, filings and registrations which
    have been made or obtained and remain valid as of the date
    hereof, (ii) any licenses, authorizations, consents or
    approvals of the National Bank of Romania which the Borrower is
    in the process of obtaining and (iii) any immaterial
    licenses, approvals, consents, filings and registrations which
    the Borrower is in the process of obtaining and which have been
    identified by the Borrower to the Bank in writing prior to the
    date hereof, and the Borrower has no reason to believe that such
    licenses, approvals, consents, filings or registrations will be
    rescinded, cancelled or suspended or, in the case of paragraph
    (ii) or (iii), not obtained.
    
	 
	(d)	
    Ranking. This
    Agreement constitutes a direct, unconditional and secured
    obligation of the Borrower and the Debt incurred by the Borrower
    hereunder ranks and will rank in priority of payment senior to
    all other present and future indebtedness of the Borrower other
    than (i) the EDC Loan, the NIB Loan, any Working Capital
    Facility and any Debt owed to a Hedge Provider with respect to
    which the Debt incurred by the Borrower hereunder ranks at least
    pari passu and (ii) at any time prior to the
    Existing Loans Repayment Date, the Existing Loans Indebtedness.
    
	 
	(e)	
    Security. Each
    Security Document will, when executed and delivered, constitute
    a valid security interest in and Lien on the collateral covered
    by such Security Document, securing payment of all principal,
    interest and other amounts payable to the Senior Lenders under
    the Financing Agreements and upon registration with the relevant
    registries as required under applicable law shall be perfected
    and shall rank senior to all other Liens on such collateral
    other than Permitted Liens. The Borrower is not a party to any
    other security agreement or instrument creating or purporting to
    create a Lien on such collateral other than Permitted Liens. The
    Security is not subject to avoidance or loss of priority on
    liquidation of the Borrower or in bankruptcy, composition or
    other insolvency proceedings relating to the Borrower.
    
	 
	(f)	
    Project and Material Agreements.
    Each of the Project Agreements and
    Material Agreements is in full force and effect without
    modification from the description thereof set forth in
    Section 1.01 (without the application of
    Section 1.02(c)). There has occurred no breach, and no
    event which with the giving of notice, the passage of time or
    the making of any determination, or any combination thereof,
    would constitute a breach of any of the Project Agreements or
    Material Agreements.
    
	 
	(g)	
    Taxes. There is no
    stamp or other tax or charge of Romania or any political
    subdivision or taxing authority thereof or of any taxing
    authority, federation or association of which Romania is a
    member to be imposed on or by virtue of the execution, delivery
    or performance of any Financing Agreement or necessary to
    

36

 

		
	 	
     ensure the legality, validity, enforceability or
    admissibility in evidence thereof in Romania other than:
    

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

Section 2.04  Acknowledgement
and Warranty

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

ARTICLE III — BANK LOAN

Section 3.01  Amount and
Currency

Subject to the terms and conditions of this
Agreement, the Bank agrees to lend to the Borrower an amount, in
Dollars, not to exceed in the aggregate $230,000,000, consisting
of:

			
	 	(1)	
    the A Loan in an amount not to exceed
    $110,000,000, consisting of (a) the Tranche I A Loan in an
    amount not to exceed $87,266,666 and (b) the Tranche II A
    Loan in an amount not to exceed $22,733,334; and
    
	 
	 	(2)	
    the B Loan in an amount of $120,000,000
    consisting of (a) the Tranche I B Loan in an amount of
    $95,200,000 and (b) the Tranche II B Loan in the amount of
    $24,800,000.
    

37

 

Section 3.02  Purpose

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

	 	 	 	 	 
	Existing Loan Agreement		Amount
	
		

	
    
    Existing Bank Loan Agreement
    

    	 	$	114,996,138.01	 
	
    
    Existing EDC Loan Agreement
    

    	 	$	26,777,699.00	 
	
    
    Existing NIB Loan Agreement
    

    	 	$	22,676,978.00	 
	
    
    Existing EKN Loan Agreement
    

    	 	$	36,745,551.46	 
	
    
    Existing Subordinated Loan Agreement
    

    	 	$	10,000,000.00	 

Section 3.03  Disbursements

		
	(a)	
    Subject to Section 3.04 and Article IV,
    the Tranche I Bank Loan shall be disbursed by the Bank in one
    Disbursement on a Business Day during the Tranche I Commitment
    Period upon request of the Borrower. The Borrower may request
    the Disbursement of the Tranche I Bank Loan by submitting to the
    Bank an original application for such Disbursement, in the form
    of Exhibit A and in substance satisfactory to the Bank, at least
    five (5) Business Days prior to the proposed date of such
    Disbursement. Such application shall, unless the Bank otherwise
    agrees, be irrevocable and binding on the Borrower.
    
	 
	(b)	
    Subject to Section 3.04 and Article IV,
    the Tranche II Bank Loan shall be disbursed by the Bank from
    time to time on any Business Day during the Tranche II
    Commitment Period in one or more Disbursements upon request of
    the Borrower. The Borrower may request a Disbursement of the
    Tranche II Bank Loan by submitting to the Bank an original
    application for such Disbursement, in the form of Exhibit A
    and in substance satisfactory to the Bank, at least eight
    (8) Business Days prior to the proposed date of such
    Disbursement. Such application shall, unless the Bank otherwise
    agrees, be irrevocable and binding on the Borrower.
    
	 
	(c)	
    Disbursements (other than a Disbursement of the
    entire undisbursed amount of the Tranche I Bank Loan or of the
    Tranche II Bank Loan) shall be made in amounts of no less than
    $5,000,000 and integral multiples of $1,000,000 thereafter.
    

38

 

		
	(d)	
    Disbursements shall be made in compliance with
    Section 4.01, Section 4.02, Section 4.03 and
    Section 4.04.
    

Section 3.04  Suspension and
Cancellation

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

			
	 	(1)	
    if no disbursements under the Senior Loan
    Agreements have been made by the date which is 90 days
    after the date hereof, or such other date as may be agreed by
    the parties hereto;
    
	 
	 	(2)	
    if an Event of Default (or for the purposes of
    suspension only, a Potential Event of Default) has occurred and
    is continuing;
    
	 
	 	(3)	
    if EDC has suspended or cancelled the right of
    the Borrower to further Disbursements (as defined in the EDC
    Loan Agreement) or NIB has suspended or cancelled the right of
    the Borrower to further Disbursements (as defined in the NIB
    Loan Agreement); or
    
	 
	 	(4)	
    if the Board of Governors of the Bank has decided
    in accordance with Article 8, paragraph 3, of the Agreement
    Establishing the Bank that access by Romania to Bank resources
    should be suspended or otherwise modified.
    

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

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

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

39

 

		
	 	
     cancellations shall be in an aggregate amount of
    $10,000,000, and integral multiples of $5,000,000 thereafter.
    

		
	 	
     Any such notice of cancellation by the Borrower
    shall be irrevocable and binding on the Borrower. Amounts of the
    Tranche II Bank Loan which are cancelled by the Borrower may not
    be reinstated. Any such cancellation of the Tranche II Bank Loan
    shall be made on a pro rata basis as amongst the Tranche
    II A Loan and the Tranche II B Loan.
    

		
	(c)	
    The Borrower shall pay to the Bank on the date of
    cancellation (other than in respect of a cancellation under
    Section 3.04(a)(4)) a cancellation fee of one eighth of one
    per cent (0.125%) of the principal amount of the Bank Loan to be
    cancelled. On termination of the Tranche I Commitment Period,
    the Borrower shall be deemed to have cancelled any then
    undisbursed portion of the Bank Loan and shall pay to the Bank
    on the date of such termination the cancellation fee specified
    above. On termination of the Tranche II Commitment Period, the
    Borrower shall be deemed to have cancelled any then undisbursed
    portion of the Tranche II Bank Loan and shall pay to the Bank on
    the date of such termination the cancellation fee specified
    above.
    

Section 3.05  Charges,
Commissions and Fees

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

		
	(b)	
    The Borrower shall pay to the Bank a loan
    administration fee of $75,000 per annum. The loan administration
    fee shall be calculated on the basis of the actual number of
    days elapsed in the relevant period and a 365-day year and shall
    be due and payable in arrears on each Interest Payment Date
    (even though no interest may be payable on such date), or such
    earlier date of cancellation of the entire amount of the Bank
    Loan as may be requested by Bank or the Borrower pursuant to
    Section 3.04.
    

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

40

 

Section 3.06  Loan Currency
Conversion

The Borrower may elect to convert any portion of
the A Loan (subject to the restrictions below and other than any
portion of the A Loan in an amount not to exceed $10,000,000
notified by the Bank to the Borrower) from Dollars to Euro at
the Euro Exchange Rate (any portion of the A Loan so converted
referred to as a “Euro Loan”), as follows:

			
	 	(1)	
    the Borrower may only exercise such option if:
    

			
	 	(A)	
    at the time of exercise no Event of Default and
    no Potential Event of Default has occurred and is continuing; and
    
	 
	 	(B)	
    the principal amount of the portion of the A Loan
    which is being converted from Dollars to Euro is not less than
    twenty million Dollars ($20,000,000);
    

			
	 	(2)	
    the Borrower shall exercise such option by notice
    to the Bank no less than five (5) Business Days prior to
    the conversion date for such Euro Loan (the “Euro Loan
    Conversion Date”). Such notice shall, unless the Bank
    otherwise agrees, be irrevocable, shall specify the Euro Loan
    Conversion Date selected by the Borrower and the principal
    amount of the A Loan to be converted into a Euro Loan and shall
    be accompanied by such documents as may be necessary to satisfy
    the Bank that all necessary governmental and other approvals
    (including any exchange control approvals) have been obtained or
    will be available for conversion of such portion of the A Loan
    to a Euro Loan, and that the rights of the Bank under the
    Security Documents and any other rights of the Bank will not be
    prejudiced thereby.
    
	 
	 	(3)	
    If the Bank is satisfied with the matters
    referred to in Section 3.06(2):
    

			
	 	(A)	
    the Bank shall, on such Euro Loan Conversion
    Date, promptly give notice of the principal amount of the Euro
    Loan to the Borrower; and
    
	 
	 	(B)	
    subject to Section 3.07(d), commencing on
    such Euro Loan Conversion Date and ending on the day such Euro
    Loan is repaid, interest shall accrue on the principal amounts
    outstanding from time to time of the Euro Loan at rates equal to
    the sum of the Margin and EURIBOR.
    

			
	 	(4)	
    If the Bank is not satisfied with the matters
    referred to in Section 3.06(2), such portion of the A Loan
    shall not be converted into a Euro Loan.
    

Section 3.07  Interest

		
	(a)	
    Except as provided in sub-clauses (d) and
    (e) of this Section 3.07 and except as provided in
    Section 3.08:
    

			
	 	(1)	
    subject to Section 3.07(a)(2), the Borrower
    shall pay interest on the principal amount of each Disbursement
    of the Bank Loan from time to time outstanding during each
    Interest Period for such Disbursement at a rate equal to the sum
    of the Margin and LIBOR for such Interest Period; and
    

41

 

			
	 	(2)	
    The Borrower shall pay interest on the principal
    amount of each Euro Loan from time to time outstanding during
    each Interest Period applicable to such Euro Loan at a rate
    equal to the sum of the Margin and EURIBOR for such Interest
    Period.
    

		
	(b)	
    Interest shall:
    

			
	 	(1)	
    accrue from and including the first day of an
    Interest Period to but excluding the last day of such Interest
    Period;
    
	 
	 	(2)	
    be calculated on the basis of the actual number
    of days elapsed and a 360-day year, except under sub-clauses
    (d) and (e) below, when it shall be calculated on the basis
    of the actual number of days elapsed and a 365-day year; and
    

			
	 	(3)	
    be due and payable on the Interest Payment Date
    which is the last day of the relevant Interest Period.
    

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

		
	(d)	
    Notwithstanding the foregoing, the Borrower may,
    as an alternative to paying interest at a variable rate on all
    or any portion of the A Loan then outstanding (other than any
    portion of the A Loan in an amount not to exceed $10,000,000
    notified by the Bank to the Borrower), elect, from time to time,
    to pay interest at a fixed interest rate on such portion of the
    A Loan, as follows:
    

			
	 	(1)	
    The Borrower may only exercise such option if:
    

			
	 	(A)	
    at the time of exercise no Event of Default and
    no Potential Event of Default has occurred and is continuing;
    
	 
	 	(B)	
    the USD Equivalent Amount of the principal amount
    of the A Loan which is being converted from a variable interest
    rate to a fixed interest rate is not less than twenty million
    Dollars ($20,000,000); and
    
	 
	 	(C)	
    the Applicable Loan Currency of the principal
    amount of the A Loan which is being converted from a variable
    interest rate to a fixed interest rate is the same.
    

			
	 	(2)	
    The Borrower shall exercise such option by notice
    to the Bank no less than five (5) Business Days prior to
    the proposed A Loan Interest Fixing Date. Such notice shall,
    unless the Bank otherwise agrees, be irrevocable, shall specify
    the A Loan Interest Fixing Date, the A Loan Interest Conversion
    Date, the A Loan Interest Conversion Period selected by the
    Borrower and the principal amount of the A Loan to be converted
    to a fixed interest rate and shall be accompanied by such
    documents as may be necessary to satisfy the Bank that all
    necessary governmental and other approvals (including any
    

42

 

		
	 	
     exchange control approvals) have been obtained
    or will be available for conversion of such portion of the A
    Loan to a fixed interest rate and for its conversion back to a
    variable rate at the end of the A Loan Interest Conversion
    Period, and that the rights of the Bank under all the Security
    Documents and any other rights of the Bank will not be
    prejudiced thereby.
    

			
	 	(3)	
    If the Bank is satisfied with the matters
    referred to in Section 3.07(d)(2):
    

			
	 	(A)	
    the Bank shall, on such A Loan Interest Fixing
    Date, determine, in accordance with section 3.07(d)(3)(B), the
    fixed interest rate applicable to the portion of the A Loan
    being converted and promptly give notice thereof to the Borrower;
    
	 
	 	(B)	
    commencing on such A Loan Interest Conversion
    Date and ending on the last day of the A Loan Interest
    Conversion Period, interest shall accrue on the principal
    amounts outstanding from time to time of the portion of the A
    Loan being converted at rates equal to the sum of the Margin and
    the fixed interest rate for the Applicable Loan Currency of the
    portion of the A Loan being converted which is available to the
    Bank in the interest rate swap market on such A Loan Interest
    Fixing Date for the period commencing on such A Loan Interest
    Conversion Date and ending on the last day of the A Loan
    Interest Conversion Period, taking into account the principal
    repayment and interest payment schedules for the A Loan; and
    
	 
	 	(C)	
    at the end of the applicable A Loan Interest
    Conversion Period, interest on the applicable portion of the A
    Loan shall again accrue at the variable rate determined in
    accordance with Section 3.07(a) through 3.07(c), unless a
    new election is made under this Section 3.07(d) for a fixed
    interest rate to be applicable to the following period.
    

			
	 	(4)	
    If the Bank is not satisfied with the matters
    referred to in Section 3.07(d)(2), interest on the portion
    of the A Loan specified in the Borrower’s notice shall
    continue to accrue at the rate determined in accordance with
    Section 3.07(a) through 3.07(c).
    

		
	(e)	
    In addition, and notwithstanding the foregoing,
    the Borrower may elect to pay interest at a fixed rate on the
    principal amount of any Disbursement of the A Loan (other than
    any portion of the A Loan in an amount not to exceed $10,000,000
    notified by the Bank to the Borrower) in an amount equal to or
    greater than $20,000,000, with effect as of the date of such
    Disbursement and continuing for the applicable A Loan Interest
    Rate Conversion Period, as follows:
    

			
	 	(1)	
    The Borrower shall make such election that a
    fixed interest rate apply to a Disbursement of the A Loan by
    indicating as such on its application for such Disbursement (as
    set forth in Exhibit A) and indicating thereon the A Loan
    Interest Conversion Period that the Borrower wishes to apply to
    such Disbursement, which application shall be accompanied by
    such documents as may be necessary to satisfy the Bank that all
    necessary governmental and other approvals (including any
    exchange control approvals) have been obtained or will be
    available for conversion of such Disbursement of the A
    

43

 

		
	 	
     Loan to a fixed interest rate, and for its
    conversion back to a variable rate at the end of the applicable
    A Loan Interest Conversion Period, and that the rights of the
    Bank under all the Security Documents and any other rights of
    the Bank will not be prejudiced thereby.
    

			
	 	(2)	
    If the Bank is satisfied with the matters
    referred to in Section 3.07(e)(1):
    

			
	 	(A)	
    the Bank shall determine in accordance with
    Section 3.07(e)(2)(B), the fixed interest rate applicable
    to the principal amount of the applicable Disbursement of the A
    Loan and promptly give notice thereof to the Borrower;
    
	 
	 	(B)	
    commencing on the date of the applicable
    Disbursement, interest shall accrue on the principal amount
    outstanding of such Disbursement at a rate equal to the sum of
    the Margin and the fixed interest rate for Dollars which is
    available to the Bank in the interest rate swap market two (2)
    Business Days prior to the date of such Disbursement for the
    period commencing on such date of Disbursement and ending on the
    last day of the A Loan Interest Conversion Period specified by
    the Borrower in its application for Disbursement, taking into
    account the principal repayment and interest payment schedules
    for the A Loan; and
    
	 
	 	(C)	
    at the end of the A Loan Interest Conversion
    Period applicable to such Disbursement, interest on such
    Disbursement shall again accrue at the variable rate determined
    in accordance with Section 3.07(a) through 3.07(c), unless
    a new election is made under Section 3.07(d) for a fixed
    interest rate to be applicable to the following period.
    

			
	 	(3)	
    If the Bank is not satisfied with the matters
    referred to in Section 3.07(e)(1), interest on the
    principal amount of the applicable Disbursement of the A Loan
    shall continue to accrue at the rate determined in accordance
    with Section 3.07(a) through 3.07(c).
    

		
	(f)	
    To the extent the Bank determines that it is both
    desirable and practicable to do so, the Bank may at any time
    elect to consolidate all fixed interest rates then applicable to
    portions of the A Loan made in the same Loan Currency into one
    or more fixed interest rates based on the weighted average or,
    as applicable, averages, of the fixed interest rates then
    applicable to the relevant portions of the A Loan made in such
    Loan Currency. The Bank shall determine such consolidated fixed
    interest rate or rates and give notice thereof to the Borrower.
    Such consolidated fixed interest rate or rates shall be
    applicable to the relevant portions of the A Loan made in such
    Applicable Loan Currency then bearing interest at fixed rates
    commencing on the Interest Payment Date immediately following
    the notice from the Bank to the Borrower.
    

		
	(g)	
    On December 31, 2003 and on each Quarter
    Date thereafter (each such date, the “Margin Determination
    Date”) the Margin under this Section 3.07 (including
    for purposes of Sections 3.07(d)(3)(B) and 3.07(e)(2)(B))
    for the Interest Period following such Margin Determination Date
    shall be adjusted such that it equals the “Adjusted
    Margin” identified in the table below if the Total
    Financial Debt to EBITDA Ratio, calculated as of the Margin
    Determination Date by reference to the
    

44

 

		
	 	
     Quarterly Period ending on the Margin
    Determination Date and the preceding 3 Quarterly Periods, is the
    ratio identified next to such Adjusted Margin in the table below:
    

	 	 	 	 	 
	Total Financial Debt to EBITDA Ratio		Adjusted Margin
	
		

	
    
    greater than 2.00
    

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

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

    	 	 	3.00	%
	
    
    equal to or less than 1.00
    

    	 	 	2.50	%

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

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

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

Section 3.08  Default
Interest

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

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

		
	(b)	
    Default interest shall:
    

45

 

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

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

Section 3.09  Repayment

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

	 	 	 	 	 	 
			Percentage of
			Bank Loan
	Date Payment Due		to be repaid
	
		

	
    
    14 January 2004
    

    	 	 	2.5	%
	
    
    14 April 2004
    

    	 	 	2.5	%
	
    
    14 July 2004
    

    	 	 	2.5	%
	
    
    14 October 2004
    

    	 	 	2.5	%
	
    
    14 January 2005
    

    	 	 	3.75	%
	
    
    14 April 2005
    

    	 	 	3.75	%
	
    
    14 July 2005
    

    	 	 	3.75	%
	
    
    14 October 2005
    

    	 	 	3.75	%
	
    
    14 January 2006
    

    	 	 	5	%
	
    
    14 April 2006
    

    	 	 	5	%
	
    
    14 July 2006
    

    	 	 	5	%
	
    
    14 October 2006
    

    	 	 	5	%
	
    
    14 January 2007
    

    	 	 	6.25	%
	
    
    14 April 2007
    

    	 	 	6.25	%
	
    
    14 July 2007
    

    	 	 	6.25	%
	
    
    14 October 2007
    

    	 	 	6.25	%
	
    
    14 January 2008
    

    	 	 	7.5	%
	
    
    14 April 2008
    

    	 	 	7.5	%
	
    
    14 July 2008
    

    	 	 	7.5	%
	
    
    14 October 2008
    

    	 	 	7.5	%
	 	 	 	
	 
	 	
    
    Total

    	 	 	100.0	%
	 	 	 	
	 

		
	(b)	
    From time to time while the Bank Loan is being
    disbursed, Disbursements shall be allocated by the Bank for
    repayment on each of the dates set forth above in amounts which
    are pro rata to the amounts of the respective installments of
    the Bank Loan set
    

46

 

		
	 	
     forth above opposite those dates (with the Bank
    adjusting those allocations as necessary so as to achieve whole
    numbers in each case).
    

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

Section 3.10  Mandatory
Prepayment

		
	(a)	
    Proceeds of Permitted High Yield Back to Back
    Debt. The Borrower shall forthwith
    make the following prepayments of the Senior Loans out of the
    net proceeds received by the Borrower from the issuance of any
    Permitted High Yield Back to Back Debt (in each case, on a
    pro rata basis and in the manner contemplated by
    Section 3.10(e)):
    

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

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

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

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

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

			
	 	(i)	
    Public Offering. If, following a Public Offering
    by the Borrower, there is a change in the percentage of the
    share capital of the Borrower in respect of which the Bank holds
    a security interest under the Security Agreement Over Shares,
    the Borrower shall apply all proceeds obtained by the Borrower
    from such Public Offering to immediately prepay that percentage
    of the principal amount outstanding under the Senior Loans as is
    identified in the table below under the heading “Percentage
    of Senior Loans to be Prepaid” next to the applicable
    percentage of the Borrower’s aggregate share capital in
    respect of which the Bank holds a security interest under the
    Security Agreement Over Shares (provided that such percentage
    shall be of the aggregate amount of share capital of the
    Borrower issued and outstanding after such Public
    

47

 

		
	 	
     Offering takes place), which is identified in
    the table below under “Percentage of Share Capital
    Secured”, on a pro rata basis (in the manner
    contemplated in Section 3.10(e)):
    

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

	
    
    Greater than 75%
    

    	 	 	0	%
	
    
    65% to 75%
    

    	 	 	25	%
	
    
    55% to 64.9%
    

    	 	 	50	%
	
    
    50.1% to 54.9%
    

    	 	 	70	%

			
	 	(ii)	
    Public Secondary Sale. If (1) any
    Shareholder proposes to sell, transfer, convey or assign any
    shares in the capital of the Borrower which are subject to the
    Security pursuant to a Public Secondary Sale, and (2) such
    Shareholder requires a release of the Security in respect of any
    or all of such shares in compliance with the terms of the Share
    Retention and Subordination Deed (if applicable) and the
    Security Agreement Over Shares, then the Borrower shall provide
    to the Bank notice of such proposed transfer which notice shall
    include a request for such a release, and shall prepay that
    percentage of the principal amount outstanding under the Senior
    Loans as is identified in the table in Section 3.10(b)(i)
    under the heading “Percentage of Senior Loans to be
    Prepaid” next to the applicable percentage of the
    Borrower’s aggregate issued and outstanding share capital
    in respect of which the Bank holds a security interest under the
    Security which is identified in the table in
    Section 3.10(b)(i) under “Percentage of Share Capital
    Secured” (provided that such percentage shall be determined
    after giving effect to such release of Security under
    Section 4.05 of the Share Retention and Subordination Deed
    and Section 4.4 of the Security Agreement Over Shares), on
    a pro rata basis (in the manner contemplated in
    Section 3.10(e)), provided that notwithstanding anything to
    the contrary in the Financing Agreements, the Bank shall not be
    obligated to release or discharge any Security in respect of
    shares in the capital of the Borrower pursuant to
    Section 4.05 of the Share Retention and Subordination Deed
    or Section 4.4 of the Security Agreement Over Shares unless
    the Borrower has made the prepayment required under this
    Section 3.10(b)(ii) in respect of the transfer of such
    shares.
    

			
	 	(iii)	
    Stock Option Plan. For the purposes of
    Section 3.10(b)(i) and (ii), any issuance of shares to
    employees of the Borrower pursuant to stock option plans
    permitted under Section 6.06(a) shall be deemed to
    constitute a Public Offering or a Public Secondary Sale, as
    applicable.
    

		
	(c)	
    Long Term Debt Repayment.
    The Borrower shall prepay the
    principal amount outstanding under the Senior Loans immediately
    upon and in an amount pro rata (based on then outstanding
    amounts under the Senior Loans and any other Long-term Debt
    referred to in this Section 3.10(c)) to any prepayment,
    repurchase, or early redemption by the Borrower of any other
    Long-term Debt (which has been consented to by the Bank pursuant
    to Section 6.02) of the Borrower (other than in respect of
    any
    

48

 

		
	 	
     Working Capital Facility or the Existing Loans)
    or any repayment of any such Long-term Debt pursuant to any
    provision of any agreement or note which provides directly or
    indirectly for acceleration of repayment in time or amount, in
    the manner contemplated in Section 3.10(e).
    

		
	(d)	
    Excess Cash. On the
    fourteenth (14th) day after the end of each Quarterly Period
    (the “Excess Cash Mandatory Prepayment Date”), the
    Borrower shall prepay the principal amount outstanding of the
    Senior Loans on a pro rata basis (in the manner contemplated in
    Section 3.10(e)),
    

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

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

			
	 	(ii)	
    if the Senior Debt Service Coverage Ratio
    calculated by reference to such Quarterly Period and the 3
    preceding Quarterly Periods is equal to or greater than 1.40 but
    less than 1.70, in an amount equal to the lesser of
    

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

		
	 	
    provided, for greater certainty, that for
    purposes of this Section 3.10(d) Curative Equity shall not be
    taken into account in calculating EBITDA for purposes of
    determining Excess Cash Flow and Senior Debt Service Coverage
    Ratio.
    

		
	(e)	
    Pro Rata. Any
    prepayment under this Section 3.10 shall be made and
    applied on (i) a pro rata basis between the Senior
    Lenders in proportion to their respective principal amounts of
    Senior Loans outstanding under the Senior Loan Agreements
    immediately prior to such prepayment, and (ii) with respect to
    the Bank Loan, on a pro rata basis between the Tranche I
    A Loan, the Tranche II A Loan, the Tranche I B Loan and the
    Tranche II B Loan then outstanding in proportion to the
    respective principal amounts thereof outstanding immediately
    prior to such prepayment and (iii) shall be applied to the
    outstanding repayment instalments of the Bank Loan in inverse
    order of maturity.
    

		
	(f)	
    Assignment of Subordinated Financial debt.
    The Borrower shall provide notice to
    the Bank at least 30 days prior to incurring any Permitted
    High Yield Back to Back Debt, identifying in such notice
    (i) the anticipated principal amount of such Permitted High
    Yield Back to Back Debt and (ii) if the aggregate principal
    amount of all Permitted High Yield Back to Back Debt (including
    the Permitted High Yield Back to Back Debt identified in such
    notice) exceeds $150,000,000, whether or not an Assignment of
    Subordinated Debt will be provided in respect of all Permitted
    High Yield Back to Back Debt. If such notice does not specify
    that such Assignment of
    

49

 

		
	 	
     Subordinated Debt will be provided, then Bank
    will notify the Borrower within 15 days of receipt of the
    Borrower’s notice hereunder whether it requires the
    Borrower to prepay the Bank Loan at the time of incurring such
    Permitted High Yield Back to Back Debt. If the Bank specifies in
    such notice that it requires the Borrower to prepay the Bank
    Loan at the time of incurring such Permitted High Yield Back to
    Back Debt, then, unless an Assignment of Subordinated Debt in
    respect of all Permitted High Yield Back to Back Debt, is
    provided to the Bank contemporaneously with the Borrower
    incurring such Permitted High Yield Back to Back Debt, the
    Borrower shall prepay, contemporaneously with incurring such
    Permitted High Yield Back to Back Debt, the entire principal
    amount outstanding under the Bank Loan and will pay at such time
    all accrued interest and other amounts in respect thereof.
    

		
	(g)	
    Other Amounts; No Reduction.
    The Borrower shall pay to the Bank, at
    the same time as any mandatory prepayment is made under this
    Section 3.10, all accrued interest and other amounts
    payable on the principal amount of the Bank Loan to be so
    prepaid and all other amounts due hereunder in respect of such
    mandatory prepayment, including without limitation any unwinding
    costs, which may arise as provided under Section 3.15.
    Amounts of the Bank Loan prepaid by the Borrower under this
    Section 3.10 may not be reborrowed and the commitment of
    the Bank to make the Tranche I A Loan, the Tranche II A Loan,
    the Tranche I B Loan and the Tranche II B Loan available
    hereunder, and the amount of the Tranche I A Loan, the Tranche
    II A Loan, the Tranche I B Loan and the Tranche II B Loan
    respectively, shall be permanently reduced by such prepaid
    amounts.
    
	 
	(h)	
    Prepayment Fee. The
    Borrower shall pay the Bank on the prepayment date an
    administration charge equal to one eighth of one percent
    (0.125%) of the principal amount of the Bank Loan to be prepaid
    under this Section 3.10.
    

Section 3.11  Voluntary
Prepayment

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

			
	 	(1)	
    the Borrower shall pay to the Bank at the same
    time all accrued interest and other amounts payable on the
    principal amount of the Bank Loan to be prepaid and all other
    amounts due hereunder in respect of such prepayment, including
    without limitation any unwinding costs, which may arise as
    provided under Section 3.15; and
    
	 
	 	(2)	
    in the case of a partial prepayment:
    

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

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

			
	 	(A)	
    first to outstanding repayment instalments of the
    B Loan, in inverse order of maturity, until such time as the
    outstanding principal amount of the B Loan is reduced to zero
    (0), and
    

50

 

			
	 	(B)	
    second, to the outstanding repayment instalments
    of the A Loan, the NIB Loan and the EDC Loan, on a pro rata
    basis in proportion to the respective principal amounts
    outstanding immediately prior to such prepayments under the A
    Loan, the NIB Loan and the EDC Loan, in inverse order of
    maturity,
    

		
	 	
     provided that the Bank at its sole discretion
    upon 10 Business Days’ written notice to the Borrower may
    require that such prepayment be allocated and applied instead
    between the A Loan, the B Loan and the Senior Loans provided by
    any other Senior Lender(s) that delivered a similar notice to
    the Borrower with a copy to the Bank within such 10 Business Day
    period, such allocation to be made on a pro rata basis
    based on the principal amounts outstanding under the A Loan, the
    B Loan and such other Senior Loans immediately prior to such
    prepayment, in each case in inverse order of maturity. If the
    Bank delivers such notice to the Borrower, the prepayment charge
    payable pursuant to Section 3.11(b) in respect of such
    prepayment shall be payable at the rate identified in
    Section 3.11(b)(ii).
    

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

		
	(b)	
    (i)   The Borrower shall pay to
    the Bank on the date of prepayment of the A Loan under this
    Section 3.11 an administration charge equal to,
    

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

		
	 	
     (ii)   The Borrower shall pay to
    the Bank on the date of prepayment of the B Loan under this
    Section 3.11 (and in case the proviso to Section
    3.11(a)(2)(ii) is applicable, on the date of prepayment of the
    Bank Loan) an administration charge equal to,
    

			
	 	(A)	
    one quarter of one percent (0.25%) of the
    principal amount of the B Loan, or, in case the proviso to
    Section 3.11(a)(2)(ii) is applicable, the Bank Loan, to be
    prepaid, if prepayment occurs on or before 31 December 2004, or
    
	 
	 	(B)	
    one eighth of one percent (0.125%) of the
    principal amount of the B Loan, or, in case the proviso to
    Section 3.11(a)(2)(ii) is applicable, the Bank Loan, to be
    prepaid, if prepayment occurs at any time after 31 December 2004.
    

51

 

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

		
	(d)	
    Amounts of the Bank Loan prepaid by the Borrower
    under this Section 3.11 may not be reborrowed and the
    commitment of the Bank to make the Bank Loan available hereunder
    shall be permanently reduced by such prepaid amounts.
    

		
	(e)	
    Any prepayment under this Section 3.11 shall
    be made on a pro rata basis between the Tranche I Loan
    and the Tranche II Loan.
    

Section 3.12  Payments

		
	(a)	
    Subject to Section 3.12(b) and 3.12(c) all
    payments of principal, interest, charges, commissions, fees,
    expenses and any other amounts due to the Bank under this
    Agreement shall be made, without set-off or counterclaim, in
    Dollars.
    

		
	(b)	
    Subject to Section 3.12(c), all payments of
    principal, interest, charges, commissions, fees, expenses and
    any other amounts due to the Bank under this Agreement in
    connection with Euro Loans shall be made, without set-off or
    counterclaim, in Euro.
    

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

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

		
	(e)	
    The sums to be disbursed by the Bank to the
    Borrower hereunder shall be payable in Dollars, for value,
    unless otherwise agreed by the Borrower and the Bank, on the
    value date requested by the Borrower in its Disbursement
    application and to such correspondent account in New York City
    as the Borrower may designate in its Disbursement application
    (with instructions to transfer such sums, at the Borrower’s
    risk and expense, to such account as the Borrower may designate
    in its Disbursement application).
    

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

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

52

 

Section 3.13  Insufficient
Payments

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

		
	(b)	
    The Borrower shall indemnify the Bank against any
    losses resulting from a payment being received, or a claim being
    filed or an order or judgement being given, hereunder in a
    currency or place other than the currency and place specified in
    Section 3.12(a),(b),(c) and (d). The Borrower shall pay
    such additional amount as is necessary to enable the Bank to
    receive, after conversion to such currency at a market rate and
    transfer to such place, the full amount due to the Bank
    hereunder in the currency and at the place specified in
    Section 3.12(a),(b),(c) and (d).
    

Section 3.14  Taxes

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

		
	(b)	
    All payments of principal, interest and other
    amounts due to the Bank under this Agreement shall be made free
    and clear of, and without deduction or withholding for or on
    account of, any taxes, duties, fees, royalties, deductions,
    imposts, or charges, provided, however, that, in the event that
    the Borrower is prevented by operation of law or otherwise from
    making such payments free and clear of such deductions or
    withholdings, the principal, interest or other amount (as the
    case may be) due under this Agreement shall be increased to such
    amount as may be necessary to remit to the Bank the full amount
    it would have received had such payment been made without such
    deductions or withholdings.
    

		
	(c)	
    The provisions of Sections 3.14(a) and
    3.14(b) shall not apply to taxes, duties, fees, royalties,
    deductions, imposts or other charges to the extent that such
    taxes, duties, fees, royalties, deductions, imposts or other
    charges arise as a direct consequence of a Participation having
    been acquired by a Participant whose principal office is located
    in Romania or by the permanent office or establishment in
    Romania of a Participant.
    

Section 3.15  Unwinding
Costs

		
	(a)	
    If, for any reason (including, without
    limitation, an acceleration pursuant to Section 7.02, 7.03
    or 7.04), any portion of the Bank Loan which is subject to a
    variable interest rate in accordance with Section 3.07(a)
    becomes due and payable on a date other than the last day of an
    Interest Period, the Borrower shall pay to the Bank on demand
    the amount, if any, by which:
    

53

 

			
	 	(1)	
    the interest which would have accrued on such
    portion of the Bank Loan from the date on which such portion of
    the Bank Loan has become due and payable to the last day of the
    then current Interest Period applicable to such portion of the
    Bank Loan at a rate equal to (i) EURIBOR if such portion of
    the Bank Loan is a Euro Loan or (ii) LIBOR in all other
    cases, in each case for such Interest Period;
    

		
	 	
     exceeds:
    

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

		
	(b)	
    If, at any time:
    

			
	 	(1)	
    the Borrower gives a notice, pursuant to
    Section 3.10 and 3.11, of prepayment of any portion of the
    Bank Loan which is subject to a fixed interest rate in
    accordance with Section 3.07(d) or (e), the Borrower is
    required, pursuant to Section 3.10 or 3.17, to prepay any
    such portion of the Bank Loan or the Borrower otherwise prepays
    any such portion of the Bank Loan;
    
	 
	 	(2)	
    any portion of the Bank Loan which is subject to
    a fixed interest rate in accordance with Section 3.07(d) or
    (e) is accelerated pursuant to Section 7.02, 7.03 or
    7.04 or otherwise becomes due prior to its stated maturity; or
    
	 
	 	(3)	
    any portion of the Bank Loan which is subject to
    a fixed interest rate in accordance with Section 3.07(d) or
    (e) is cancelled pursuant to Section 3.04 or 3.17 or
    is otherwise cancelled;
    

		
	 	
    the Borrower shall, in addition to any prepayment
    fee, cancellation fee or other amounts payable in connection
    therewith, pay to the Bank on demand the amount, if any, by
    which the Original Income Stream (as defined below) exceeds the
    Substitute Income Stream (as defined below); provided that, if
    the Substitute Income Stream exceeds the Original Income Stream,
    the Bank shall, on the next Interest Payment Date, credit to the
    Borrower, in the applicable Loan Currency, the amount by which
    the Substitute Income Stream exceeds the Original Income Stream.
    

		
	(c)	
    For purposes of Section 3.15(b):
    

			
	 	(1)	
    “Original Income Stream” means the
    aggregate of the present values of the payments of principal and
    interest which would have become due to the Bank during the
    Calculation Period (as defined below) on the portion of the Bank
    Loan which is subject to a fixed interest rate in accordance
    with Section 3.07(d) and (e) if such prepayment,
    acceleration or cancellation had not occurred and if interest
    accrued on such portion of the Bank Loan at the Fixed Rate (as
    defined below).
    
	 
	 	(2)	
    “Substitute Income Stream” means the
    sum of:
    

54

 

			
	 	(A)	
    the aggregate of the present values of any
    remaining payments of principal and interest which, after taking
    into account such prepayment, cancellation or acceleration,
    would become due to the Bank during the Calculation Period on
    the portion of the Bank Loan which is subject to a fixed
    interest rate in accordance with Section 3.07(d) and (e) if
    interest accrued on such portion of the Bank Loan at the Fixed
    Rate; and
    
	 
	 	(B)	
    as applicable:
    

			
	 	(i)	
    in the case of a prepayment pursuant to
    Section 3.10, 3.11 or 3.17, the present value of the amount
    of the Bank Loan which is subject to a fixed interest rate in
    accordance with Section 3.07(d) and (e) and which is to be
    prepaid, determined by discounting such amount from the date
    such prepayment becomes due to the Calculation Date (as defined
    below) at the Discount Rate (as defined below); and/or
    

			
	 	(ii)	
    in the case of any other prepayment, the amount
    of the Bank Loan which is subject to a fixed interest rate in
    accordance with Section 3.07(d) and (e) and which has
    been prepaid; and/or
    

			
	 	(iii)	
    in the case of an acceleration, the present value
    of the amount of the Bank Loan which is subject to a fixed
    interest rate in accordance with Section 3.07(d) and
    (e) and which has been accelerated, determined by
    discounting such amount from the date such acceleration becomes
    effective to the Calculation Date at the Discount Rate; and/or
    
	 
	 	(iv)	
    in the case of a cancellation, the present value
    of the amount of the Bank Loan which is subject to a fixed
    interest rate in accordance with Section 3.07(d) and
    (e) and which has been cancelled, determined by discounting
    such amount from the last day of the Commitment Period to the
    Calculation Date at the Discount Rate.
    

			
	 	(3)	
    “Fixed Rate” means the fixed interest
    rate applicable to the relevant portion of the Bank Loan, as
    specified in Section 3.07(d) and (e), less the Margin.
    
	 
	 	(4)	
    For purposes of Sections 3.15(c)(1) and
    3.15(c)(2)(A), the present value of each payment of principal
    and interest shall be determined by discounting the amount of
    such payment from its due date to the Calculation Date using the
    Discount Rate.
    
	 
	 	(5)	
    “Calculation Date” means:
    

			
	 	(A)	
    in the case of a prepayment pursuant to Section
    3.10, 3.11 or 3.17, the date two Business Days prior to the date
    such prepayment becomes due or, at the Bank’s option, the
    date such prepayment becomes due;
    

55

 

			
	 	(B)	
    in the case of any other prepayment, the date
    such prepayment is made or such later date as the Bank may
    select in its discretion; and
    

			
	 	(C)	
    in the case of an acceleration or cancellation,
    the date two Business Days prior to the date such acceleration
    or cancellation becomes effective or, at the Bank’s option,
    the date such acceleration or cancellation becomes effective.
    

			
	 	(6)	
    “Calculation Period” means:
    

			
	 	(A)	
    in the case of a prepayment pursuant to Section
    3.10, 3.11 or 3.17, the period commencing on the date such
    prepayment becomes due and ending on the last day of the A Loan
    Interest Conversion Period;
    
	 
	 	(B)	
    in the case of any other prepayment, the period
    commencing on the date such prepayment is made, or such later
    date as the Bank may select in its discretion, and ending on the
    last day of the A Loan Interest Conversion Period; and
    
	 
	 	(C)	
    in the case of an acceleration or cancellation,
    the period commencing on the date such acceleration or
    cancellation becomes effective and ending on the last day of the
    A Loan Interest Conversion Period.
    

			
	 	(7)	
    “Discount Rate” means the discount
    factor for the relevant maturity derived from the par swap curve
    for the applicable Loan Currency which is available to the Bank
    in the interest rate swap and options market on the Calculation
    Date.
    

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

			
	 	(1)	
    the interest which would have accrued on such
    overdue amount from the date of receipt of such overdue amount
    to the last day of the then current Default Interest Period at a
    rate equal to the rate specified in Section 3.08(a)(3) for
    such Default Interest Period;
    

		
	 	
     exceeds:
    

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

		
	(e)	
    A certificate of the Bank as to any amount
    payable under this Section 3.15 shall be final, conclusive and
    binding on the Borrower unless shown by the Borrower to the
    satisfaction of the Bank to contain clerical error.
    

Section 3.16  Increased
Costs

The Borrower shall, from time to time on demand
of the Bank, reimburse the Bank for any net incremental costs to
the Bank of making or maintaining, or committing to make, the
Bank

56

 

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

Notwithstanding the foregoing, the Borrower shall
not be obligated to reimburse the Bank for any such net
incremental cost which is (a) a direct consequence of a
Participation having been acquired by a Participant whose
principal office is located in Romania or by the permanent
office or establishment in Romania of a Participant, or
(b) attributable to the implementation by the applicable
authorities having jurisdiction over a Participant of the
matters set out in the Statement by the Committee of Banking
Regulations and Supervisory Practices dated July 1988 (as
amended or supplemented prior to the date of this Agreement) and
entitled “International Convergence of Capital Measurement
and Capital Standards”, or (c) in respect of which a
Participant is entitled to be compensated under any other
provision of this Agreement.

Section 3.17  Illegality

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

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

Section 3.18  Loan
Account

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

57

 

ARTICLE IV — CONDITIONS
PRECEDENT

Section 4.01  Tranche I Bank
Loan Disbursement

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

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

			
	 	(1)	
    this Agreement;
    
	 
	 	(2)	
    the EDC Loan Agreement;
    
	 
	 	(3)	
    the NIB Loan Agreement;
    
	 
	 	(4)	
    the Agency Agreement;
    
	 
	 	(5)	
    the Share Retention and Subordination Deed;
    
	 
	 	(6)	
    the Borrower Power of Attorney;
    
	 
	 	(7)	
    the Shareholder Power of Attorney, executed by
    each Shareholder;
    
	 
	 	(8)	
    the Security Sharing and Intercreditor Agreement;
    and
    
	 
	 	(9)	
    the Participation Agreement.
    

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

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

		
	(c)	
    Security. The
    Security shall have been validly created and constitute a first
    ranking security interest (subject only, where applicable, to
    the Existing Security) in a manner satisfactory to the Bank and
    the Bank shall have received duly executed originals of the
    following Security Documents, together with any document,
    recording, filing,
    

58

 

		
	 	
     notification, registration, notarization or
    other evidence required, in the opinion of the Bank, for the
    creation, validity, perfection or priority of the Liens of the
    Bank in or under such Security Documents:
    

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

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

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

		
	(f)	
    Specimen Signatures.
    The Bank shall have received:
    

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

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

			
	 	(1)	
    the borrowing by the Borrower under the Senior
    Loan Agreements;
    

59

 

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

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

		
	(i)	
    Auditors Letter. The
    Bank shall have received a copy of a letter to the Auditors from
    the Borrower substantially in the form of Exhibit C.
    
	 
	(j)	
    Participations. The
    Bank shall have received from Participants, upon terms
    satisfactory to the Bank, formal commitments by such
    Participants to acquire Participations in the B Loan in an
    aggregate amount equal to at least $120,000,000.
    

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

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

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

60

 

		
	(m)	
    Fee Letter. The
    Borrower and the Bank shall have entered into a letter agreement
    with respect to the fees payable by the Borrower to the Bank.
    

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

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

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

			
	 	(E)	
    All Shareholder Negative Covenant Agreements,
    
	 
	 	(F)	
    Insurance Assignment; and
    

			
	 	(G)	
    Offshore Accounts Pledge
    

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

61

 

Section 4.02  First
Tranche II Bank Loan Disbursement

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

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

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

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

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

Section 4.03  All
Disbursements

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

		
	(a)	
    Continuing Validity of
    Documents. All agreements,
    documents and instruments delivered to the Bank pursuant to
    Section 4.01 and/or Section 4.02, as applicable, shall
    be in full force and effect and unconditional (except for this
    Agreement having become unconditional, if that is a
    condition of any such agreement, and except to any extent that
    such agreements, documents and instruments have been amended or
    replaced by other agreements, documents or instruments, in each
    case acceptable to the Bank).
    
	 
	(b)	
    Representations and
    Warranties. The representations
    and warranties made or confirmed by the Borrower in the
    Financing Agreements and Project Agreements
    

62

 

shall be true on and as of such dates with the
same effect as though such representations and warranties had
been made on and as of such dates. To any extent that such
representations and warranties cannot be confirmed by the
Borrower as being true as of such dates, the Borrower shall
provide the further information necessary to make the
representations and warranties true as of such dates in light of
such further information, and such further information shall be
in form and content acceptable to the Bank.

		
	(c)	
    No Default.
    No Event of Default or Potential
    Event of Default shall have occurred and be continuing or shall,
    in the reasonable opinion of the Bank, result from such
    Disbursement or be imminent and the Borrower shall not, as a
    result of such Disbursement, be in violation of its Charter or
    any provision contained in any material agreement or instrument
    to which the Borrower is a party (including this Agreement) or
    by which the Borrower is bound, or any law applicable to
    the Borrower.
    
	 
	(d)	
    No Material Adverse
    Change. Nothing shall have occurred
    which, in the reasonable opinion of the Bank, might have a
    material adverse effect on the Project, the Borrower’s
    business, operations or financial condition or the ability of
    the Borrower to perform any of its obligations under any
    Financing Agreement or Project Agreement.
    
	 
	(e)	
    Use of Proceeds.
    In respect of any Disbursement of the Tranche II Bank
    Loan, the proceeds of such Disbursement shall be needed and used
    by the Borrower solely for the purposes of Capital Expenditures
    incurred or paid for after the date of this Agreement or for
    payment of the UMTS License Costs in connection with the
    Project and the Bank shall have received such evidence as to the
    proposed utilisation of the proceeds of such Disbursement and
    the utilisation of the proceeds of any prior Disbursement as the
    Bank reasonably requests.
    
	 
	(f)	
    Disbursement
    Application. The Bank shall have
    received an original of the Borrower’s timely application
    for such disbursement substantially in the form of
    Exhibit A.
    
	 
	(g)	
    Disbursements Pro
    Rata. The Bank shall not be
    obligated to make a Disbursement under the Tranche II Bank
    Loan other than in an amount such that on the date of such
    Disbursement the respective aggregate amounts disbursed and to
    be disbursed on such date under the Tranche II Bank Loan,
    the Tranche II EDC Loan and the Tranche II
    NIB Loan shall be in the following
    proportions: 230:35:35.
    
	 
	(h)	
    Failure of EDC/NIB
    Disbursement. In the event that
    any Disbursement is made by the Bank and corresponding
    pro rata amounts are not so disbursed pursuant to
    subsection 4.03(g) by EDC or NIB, then the Borrower shall
    be obligated to remit to the Bank the amount of such
    Disbursement immediately upon being notified by the Bank in such
    regard, along with any interest accruing thereon during the
    period that the Borrower held such amount.
    
	 
	(i)	
    Fees and Expenses.
    All fees and expenses due and payable pursuant to
    Sections 3.05 and 5.12 and the fee letter agreement
    identified in Section 4.01(m) at the time of the
    Disbursement shall have been paid in full.
    

63

 

Section 4.04  Participations

Notwithstanding anything in this Agreement to the
contrary, the obligation of the Bank to make any Disbursement
shall also be subject to the conditions that the Bank shall not
in any event be obligated to make any Disbursement of the B Loan
except to the extent that corresponding funds are provided to
the Bank by Participants pursuant to Participations.

ARTICLE V — AFFIRMATIVE
COVENANTS

Unless the Bank otherwise agrees in writing:

Section 5.01  Project
Implementation and Use of Proceeds

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

Section 5.02  Maintenance
and Continuity of Business and Compliance
with Obligations

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

Section 5.03  Environment,
Health and Safety

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

Section 5.04  Insurance

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

Section 5.05  Accounting

		
	(a)	
    The Borrower shall maintain an accounting and
    cost control system and management information system
    satisfactory to the Bank
    
	 
	(b)	
    The Borrower shall maintain books of account and
    other records adequate to present a true and fair view of the
    financial condition of the Borrower and the results of its
    operations in conformity with Generally Accepted Accounting
    Principles and RAS.
    

64

 

		
	(c)	
    The Borrower shall maintain as its auditors a
    firm of independent accountants acceptable to the Bank.
    The Borrower shall authorise, by a letter
    substantially in the form of Exhibit C, the Auditors to
    communicate directly with the Bank at any time regarding the
    Borrower’s accounts and operations.
    

Section 5.06  Continuing
Governmental and Other Approvals

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

Section 5.07  Security

		
	(a)	
    General.
    The Borrower shall create,
    perfect, maintain and, as appropriate, renew the Security in a
    manner satisfactory to the Bank.
    
	 
	(b)	
    Existing Security.
    The Borrower shall, immediately upon
    receipt of the Existing Loans Repayment Confirmations and a copy
    of the executed Conditional Discharge, cooperate with, and
    assist, the Bank and its counsel in discharging and releasing
    the Existing Security in a manner satisfactory to the Bank, such
    that the Security shall become first ranking in priority and the
    Borrower shall take such other steps and actions as may be
    necessary or advisable to ensure that the Security becomes first
    ranking in a manner satisfactory to the Bank.
    
	 
	(c)	
    Immovables. Each
    time that the Borrower acquires immovable tangible assets, in
    one or in a series of related transactions, having an aggregate
    value in excess of $3,000,000, the Borrower shall immediately
    notify the Bank and shall (i) as soon as possible but
    in any event within thirty days, provide to the Bank an
    Immovables Hypothec with respect to such immovable tangible
    assets, shall apply for registration of such Immovables Hypothec
    in the appropriate registers (and deliver to the Bank such
    register’s acknowledgment of such application being made)
    and (ii) shall take all steps to ensure such registration
    takes place as soon as possible, all in order to provide in
    favour of the Secured Parties a first priority security
    interest with respect to such immovable tangible assets.
    
	 
	(d)	
    Movables. Each
    six months after the date hereof, the Borrower shall
    provide to the Bank an updated current list of all of the
    Borrower’s movable assets, tangible and intangible,
    including lists of Material Agreements in compliance with
    Section 4.1(e) of the Security Agreement Over Movables, and
    shall forthwith take any other steps and actions necessary or
    advisable to ensure that the Secured Parties have a first
    ranking security interest (subject only to Permitted Liens) in
    respect of all of the Borrower’s movable assets, tangible
    and intangible, present and future, under the Security Agreement
    Over Movables in accordance with all requirements of
    Romanian law.
    
	 
	(e)	
    Shares.
    The Borrower shall take any
    action required of it in order that at all times 100% of the
    shares (and votes associated therewith) of the Borrower
    shall be effectively subject to the Security Agreement Over
    Shares, subject to Section 4.05 of
    

65

 

the Share Retention and Subordination Deed and
Section 4.4 of the Security Agreement Over Shares.
The Borrower shall sign and register such documents and
take such other steps as are necessary including without
limitation complying with its obligations under the Security
Agreement Over Shares to update the list of shares in respect of
which a security interest is granted pursuant to the Security
Agreement Over Shares and to ensure that the Security Agreement
Over Shares applies in respect of any shares of the Borrower
held by the Shareholders from time to time as necessary to
comply with the foregoing requirement that at all times 100% of
the total shares (and votes associated therewith) of the
Borrower remain subject to the Security Agreement Over Shares
subject to Section 4.05 of the Share Retention and
Subordination Deed and Section 4.4 of the Security
Agreement Over Shares.

		
	(f)	
    Accounts.
    The Borrower shall ensure that at
    all times all payments made to the Borrower (including under any
    Project Agreement) are deposited in Borrower Accounts in respect
    of which the Secured Parties and Working Capital Lenders have a
    pledge or other security interest pursuant to the Security
    Agreement Over Accounts or, in respect of Borrower Accounts held
    in banks outside of Romania, such other Security Document as may
    be in form and substance satisfactory to the Bank.
    
	 
	(g)	
    Roaming Revenues.
    To the extent the Borrower has
    any Lien in respect of any Deposit (as defined in the
    Offshore Accounts Charge), whether pursuant to the Cibernet
    Financial Net Settlement Regulations dated March 14, 1997
    or otherwise, such Lien in favour of the Borrower shall in all
    respects be subordinate and postponed to the Security and the
    Borrower will take no action in respect of such Lien except any
    action specifically requested by the Senior Lenders.
    
	 
	(h)	
    Assignment of Subordinated Debt.
    If the Borrower delivers a notice
    to the Bank pursuant to Section 3.10(f) in respect of any
    Permitted High Yield Back to Back Debt, and if the aggregate
    principal amount of all Permitted High Yield Back to Back Debt
    (including the Permitted High Yield Back to Back Debt identified
    in such notice) exceeds $150,000,000, and if
    

			
	 	(i)	
    the Borrower specifies in such notice that an
    Assignment of Subordinated Debt will be provided to the Bank in
    respect of all of the Borrower’s Permitted High Yield Back
    to Back Debt, or
    
	 
	 	(ii)	
    the Borrower specifies in such notice that such
    Assignment of Subordinated Debt will not be provided to the Bank
    or does not specify in such notice whether such Assignment of
    Subordinated Debt will be provided to the Bank, the Bank
    requires in a notice delivered under Section 3.10(f) that
    the Borrower prepay in full the Bank Loan and the Borrower fails
    to make such prepayment contemporaneously with incurring the
    Permitted High Yield Back to Back Debt,
    

		
	 	
     then the Borrower shall ensure that the Bank is
    provided with an Assignment of Subordinated Debt in respect of
    all of the Borrower’s Permitted High Yield Back to Back
    Debt prior to or contemporaneously with, and as a condition
    to, the Borrower incurring the Permitted High Yield Back to Back
    Debt identified in the notice delivered by the Borrower under
    Section 3.10(f).
    

66

 

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

Section 5.08  Taxes

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

Section 5.09  Project
Agreements

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

Section 5.10  Financial
Ratios

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

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

67

 

		
	 	
     Ratio shall be equal to or less than 2.00 and on
    each Quarter Date after 31 December 2003, the Total
    Financial Debt to Equity Ratio shall be equal to or less
    than 1.75;
    

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

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

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

		
	(b)	
    Financial Testing

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

		
	(c)	
    Accounting Terms

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

Section 5.11  Further
Documents

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

68

 

Section 5.12  Costs and
Expenses

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

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

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

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

Section 5.13  Furnishing of
Information

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

			
	 	(1)	
    two copies of the Borrower’s complete
    unaudited Financial Statements for such Quarterly Period
    prepared in Dollars in accordance with Generally Accepted
    Accounting Principles and in Lei in accordance with RAS and in
    each case in a form satisfactory to the Bank and, if requested
    by the Bank, certified by an Authorized Signatory of the
    Borrower;
    
	 
	 	(2)	
    a management discussion and analysis of results
    for such Quarterly Period, including a report on any factors
    materially and adversely affecting or which
    

69

 

		
	 	
     might materially and adversely affect the
    Borrower’s business, operations or financial condition or a
    statement that there are no such factors;
    

			
	 	(3)	
    a report, in a form satisfactory to the Bank,
    acting reasonably, on the implementation and progress of the
    Project, including;
    

			
	 	(i)	
    at all times from and after the date on which the
    Borrower obtains the UMTS License and until such time as the
    Borrower achieves UMTS License Compliance, a statement regarding
    the progress of the Borrower in meeting the conditions of the
    UMTS License (including without limitation, the coverage of the
    services provided by the Borrower’s UMTS Network and the
    coverage requirements imposed by the Ministry, if any), and
    identifying any cases of non-compliance with the UMTS License
    and any fines or penalties paid or imposed in respect thereof;
    
	 
	 	(ii)	
    the mark-to-market valuation of all hedging and
    similar derivative transactions outstanding on the last day of
    such Quarterly Period;
    
	 
	 	(iii)	
    a list of all hedging and similar derivative
    transactions outstanding as of the last day of such Quarterly
    Period with a notional amount whose USD Equivalent Amount is at
    least $20,000,000 entered into by the Borrower in such Quarterly
    Period;
    

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

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

			
	 	(1)	
    two copies of the Borrower’s complete
    Financial Statements for such Financial Year, together with a
    report of the Auditors thereon, as prepared in Dollars in
    accordance with Generally Accepted Accounting Principles in a
    form satisfactory to the Bank;
    
	 
	 	(2)	
    two copies of the Financial Statements for such
    Financial Year prepared in Lei in accordance with RAS, with the
    censors report thereon, in a form satisfactory to the Bank;
    
	 
	 	(3)	
    a management letter from the Auditors commenting
    on, among other matters, the adequacy of the Borrower’s
    financial control procedures and accounting systems;
    

70

 

			
	 	(4)	
    a Compliance Certificate, signed by the Auditors,
    certifying that the Borrower was in compliance with the
    financial covenants contained in Section 5.10 as of the end
    of such Financial Year or, as the case may be, detailing any
    non-compliance; and
    
	 
	 	(5)	
    a report, in form and scope satisfactory to the
    Bank, on environmental, health and safety issues arising in
    relation to the Borrower and the Project during such Financial
    Year.
    

		
	(c)	
    Within 30 days after the effective date of
    any new or renewed liability, property damage, business
    interruption, contractor’s all-risks and public liability
    insurance policy, the Borrower shall furnish to the Bank an
    original certificate from the Borrower’s insurer or
    insurance broker indicating the properties insured, amounts and
    risks covered, names of the loss payees (including the Bank),
    beneficiaries and assignees, name of the insurer and any special
    features of the new or renewed insurance policy.
    
	 
	(d)	
    Within 9 days after the end of each calendar
    month, the Borrower shall furnish to the Bank monthly management
    accounts of the Borrower in the form to be agreed between the
    Borrower and the Bank, which shall include Financial Statements
    and information regarding number of subscribers to the services
    provided by the Borrower’s Network, minutes of use thereof
    and average revenue per user.
    
	 
	(e)	
    The Borrower shall provide to the Bank at least
    30 days prior to incurring any Subordinated Debt notice of
    such Subordinated Debt, identifying the person providing such
    Subordinated Debt, the principal amount of such Subordinated
    Debt and the principal terms thereof.
    
	 
	(f)	
    The Borrower shall promptly inform the Bank of:
    

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

		
	(g)	
    Within 15 days of receipt of any
    communication from the Ministry that is material and adverse in
    respect of UMTS License Compliance, the Borrower shall provide
    to the Bank a detailed compliance remediation plan for the
    resolution of any compliance
    

71

 

		
	 	
     related issues identified in such communication,
    which plans shall include, inter alia, an identification
    of the UMTS License Compliance deficiencies, and a description
    of actions required to remedy the same, including detailed
    geographical and financial breakdowns; such compliance
    remediation plans shall be updated on a monthly basis within
    15 days after the end of each month.
    

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

		
	(l)	
    The Borrower shall,
    

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

		
	(m)	
    As soon as available but, in any event, within
    9 days of each Quarter Date, the Borrower shall provide to
    the Bank a statement of its Cash and Cash Equivalents and
    calculation of Excess Cash Flow and Available Cash Balance as at
    such Quarter Date and the proposed distribution thereof in
    accordance with the terms of this Agreement.
    
	 
	(n)	
    The Borrower shall furnish promptly to the Bank
    such other information as the Bank may from time to time
    reasonably request. The Borrower shall permit representatives of
    the Bank (including, without limitation, any consultants engaged
    by the Bank) to
    

72

 

		
	 	
     visit the head office of the Borrower during
    normal business hours, with prior notice, or any of the other
    premises where the business of the Borrower is conducted or
    where the Borrower’s Network is located and to have access
    to the books of account and records of the Borrower.
    

Section 5.14  Procurement

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

Section 5.15  License
Compliance

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

Section 5.16  Repayment of
Existing Loans Indebtedness; Conditional
Discharges

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

ARTICLE VI — NEGATIVE
COVENANTS

Unless the Bank otherwise agrees in writing:

Section 6.01  Distributions

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

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

73

 

			
	 	(A)	
    the lesser of
    

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

			
	 	(i)	
    the aggregate amount of all mandatory prepayments
    paid or payable pursuant to Section 3.10(d) on the four (4)
    Excess Cash Mandatory Prepayment Dates occurring on or prior to
    the date on which the Distribution is to take place, and
    
	 
	 	(ii)	
    the aggregate amount of Distributions out of
    Excess Cash Flow made within the 3 consecutive and complete
    Quarterly Periods ending on the last day of the Quarterly Period
    immediately preceding the date on which the Distribution is to
    take place; or
    

		
	 	
    (y)  the Available Cash Balance,
    calculated at the end of such Quarterly Period, less the
    aggregate amount of all mandatory prepayments payable pursuant
    to Section 3.10(d) out of such Available Cash Balance;
    

			
	 	(B)	
    the amount of net proceeds received by the
    Borrower in the Distribution Test Period from the issuance of
    Permitted High Yield Back to Back Debt less (i) the amount of
    the mandatory prepayments payable or paid to the Senior Lenders
    in respect of such net proceeds under Section 3.10(a) and
    (ii) the aggregate amount of Distributions made in respect of
    such net proceeds during the Distribution Test Period; and
    
	 
	 	(C)	
    in respect of each Quarterly Period of each
    Financial Year, from and after the Quarterly Period ending on 31
    March 2003, the positive amount, if any, by which
    

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

		
	 	
     exceeds
    

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

provided that

		
	 	
    (x)  Distributions made in respect of
    any Distribution Test Period shall be deemed to be made (1)
    first, out of the applicable Deferred Distribution Amount, if
    any, (2) second, out of the proceeds of Permitted High Yield
    Back to Back Debt pursuant to Section
    

74

 

		
	 	
     6.01(a)(3)(B), if any, and (3) third, out of
    Excess Cash Flow pursuant to Section 6.01(a)(3)(A), if any, and
    
	 
	 	
    (y)  the amount calculated pursuant to
    Section 6.01(a)(3)(C) in respect of any Quarterly Period
    shall be included in Distributions only to the extent the
    Borrower is in compliance with Romanian law requirements with
    respect to permitted Distributions in the Financial Year in
    which such Quarterly Period occurs.
    

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

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

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

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

			
	 	(7)	
    no Distributions may occur in a Quarterly Period
    in which (a) the amount of Senior Loans to be prepaid under
    Section 3.10(d)(i) is less than the amount identified in
    Section 3.10(d)(i)(A) or (b) the amount of Senior Loans to
    be prepaid under Section 3.10(d)(ii) is less than the
    amount identified in Section 3.10(d)(ii)(A).
    

		
	(b)	
    The Borrower shall not make any payments to any
    Operating Shareholder, or any Affiliate of any Operating
    Shareholder, other than (i) Distributions permitted under
    

75

 

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

Section 6.02  Financial
Debt

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

			
	 	(1)	
    prior to the Existing Loans Repayment Date, the
    Existing Loans;
    
	 
	 	(2)	
    the Senior Loans;
    
	 
	 	(3)	
    any Working Capital Facilities (but only in an
    aggregate available amount not to exceed $20,000,000) (or the
    equivalent thereof in other currencies at then current rates of
    exchange);
    
	 
	 	(4)	
    subject to compliance with Section 3.10(f)
    and Section 5.07(h), Permitted High Yield Back to Back Debt;
    
	 
	 	(5)	
    Financial Debt incurred under guarantees of loans
    of employees of the Borrower, which guarantees are issued
    pursuant to and in accordance with an employee loan guarantee
    plan, which plan (i) shall not permit the aggregate
    obligations of the Borrower under guarantees issued pursuant to
    such plan to exceed $2,000,000 and (ii) the incurrence of
    such Financial Debt shall otherwise be on terms satisfactory to
    the Bank, acting reasonably;
    
	 
	 	(6)	
    any interest rate or currency hedging or similar
    derivative transaction permitted under Section 6.04;
    
	 
	 	(7)	
    any indebtedness in connection with a conditional
    sales contract, hire purchase agreement or other instrument
    pursuant to which financing of the purchase price of equipment
    or another tangible asset is provided by a supplier to the
    Borrower, provided that such financing has a maturity of no
    longer than 180 days; and
    
	 
	 	(8)	
    any indebtedness to the Government of Romania or
    any governmental authority, arising in connection with deferred
    payment arrangements in respect of the acquisition of the UMTS
    License.
    

		
	(b)	
    The Borrower shall not enter into any agreement
    or arrangement to guarantee or, in any way or under any
    condition, to become obligated for all or any part of any
    financial or other obligation of another person, except in the
    ordinary course of business and only up to an aggregate amount
    of $2,000,000.
    

		
	(c)	
    The Borrower shall not pay any principal,
    interest or any other amount in respect of Permitted High Yield
    Back to Back Debt, other than interest payments permitted
    pursuant to Section 2.01(b)(iv) of the Share Retention and
    Subordination Deed provided that:
    

76

 

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

Section 6.03  Liens

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

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

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

Section 6.04  Derivative
Transactions

The Borrower shall not enter into any interest
rate or currency swap, interest rate cap or collar, forward rate
agreement or other interest rate, currency or commodity hedge or
similar derivative transaction, other than any interest rate or
currency hedging against interest rate or currency risks
directly arising out of the Senior Loans or in connection with
vendor invoices

77

 

of the Borrower in the ordinary course of
business on terms consistent with the Hedging Plan and with
counterparts which have a Standard & Poor’s Rating
Services credit rating of their long-term unsecured debt of at
least “A”, or is otherwise of credit quality
acceptable to the Bank. The Borrower shall promptly inform the
Bank of any hedging transaction entered into with respect to the
Senior Loans when entered into and shall promptly furnish to the
Bank a copy of the Hedging Agreement related thereto.

Section 6.05  Arm’s
Length Transactions

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

Section 6.06  Profit-sharing
and Management Arrangements

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

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

Section 6.07  Investments

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

78

 

Section 6.08  Project
Agreements

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

Section 6.09  Changes in
Business and Capital

		
	(a)	
    The Borrower shall not make changes, or permit
    changes to be made, to the nature of its present and presently
    contemplated business or operations or change the nature or
    scope of the Project. The Borrower shall not carry out any
    business or activity other than businesses or activities
    substantially related to the Project.
    

		
	(b)	
    The Borrower shall not make changes, or permit
    changes to be made, to its capital other than (i) pursuant
    to Distributions permitted under Section 6.01,
    (ii) contributions of equity or Permitted Quasi Equity and
    (iii) share repurchases permitted under Section 4.04 of the
    Share Retention and Subordination Deed, subject in the case of
    (iii) to Section 4.05 of the Share Retention and
    Subordination Deed and Section 4.4 of the Security
    Agreement Over Shares.
    

Section 6.10  Prepayment of
Long-term Debt

The Borrower shall not (whether voluntarily or
involuntarily) make any prepayment, repurchase or early
redemption of any Long-term Debt or make any repayment of any
Long-term Debt pursuant to any provision of any agreement or
note which provides directly or indirectly for acceleration of
repayment in time or amount, unless in any such case it shall
contemporaneously make a proportionate prepayment of the
principal amount then outstanding of the Bank Loan in accordance
with the provisions of Section 3.10 (except that there
shall be no minimum amount or notice period for such prepayment).

Section 6.11  Sale of
Assets; Merger

		
	(a)	
    The Borrower shall not sell, transfer, lease or
    otherwise dispose of all or a substantial part (as determined by
    the Bank in its reasonable discretion) of its assets (whether in
    a single transaction or in a series of transactions, related or
    otherwise).
    

		
	(b)	
    The Borrower shall not undertake or permit any
    merger, consolidation or reorganization.
    

Section 6.12  Shareholders
Register

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

79

 

Section 6.13  Public
Offering or Public Secondary Sale

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

		
	(a)	
    if no prepayment is made under
    Section 3.10(b), more than 75% of the share capital of the
    Borrower is subject to the Security after giving effect to such
    Public Offering or Public Secondary Sale; and
    

		
	(b)	
    if a prepayment as required under
    Section 3.10(b) is made, such percentage of shares in the
    capital of the Borrower as is required under
    Section 3.10(b) is subject to the Security.
    

ARTICLE VII — EVENTS OF
DEFAULT

Section 7.01  Events of
Default

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

		
	(a)	
    Payments. The
    Borrower fails to pay when due any principal of or interest on,
    the Bank Loan as required by this Agreement.
    

		
	(b)	
    Covenants. The
    Borrower or any other party (other than the Senior Lenders, or
    the Agent) repudiates or fails to perform in a timely manner any
    of its obligations under any Financing Agreement (other than the
    Security Sharing and Intercreditor Agreement), such repudiation
    or such failure to perform any such obligation is not referred
    to elsewhere in this Section 7.01 and, if capable of
    remedy, such repudiation or such failure to perform has
    continued for (1) a period of 30 days in respect of a
    breach of Section 5.10(a) of any of the Senior Loan
    Agreements, or (2) a period of 15 days in respect of
    all other breaches, in each case after the earlier of the date
    upon which (i) the Borrower has become aware of the same or
    (ii) notice thereof has been given to the Borrower by the
    Bank.
    

		
	(c)	
    Project Agreements.
    Any party (other than the Senior Lenders) fails to perform in a
    timely manner any of its obligations under any Project
    Agreement, the failure to perform such obligation is not
    referred to elsewhere in this Section 7.01 and, if capable
    of remedy, such failure to perform has continued for a period of
    30 days after the earlier of the date upon which
    (i) the Borrower has become aware of the same, and (ii)
    notice thereof has been given to the Borrower by the Bank, and,
    in either case, such failure to perform has a material adverse
    effect on the ability of the Borrower to perform any of its
    obligations under this Agreement.
    

		
	(d)	
    Representations. Any
    representation or warranty made or confirmed by the Borrower or
    any Shareholders or Operating Shareholders in any Financing
    Agreement or Project Agreement was false or misleading when made
    or confirmed.
    

		
	(e)	
    Nationalisation. Any
    government or governmental authority condemns, nationalises,
    seizes or otherwise expropriates all or any substantial or
    significant part of the property or other assets of the Borrower
    or of its share capital, or assumes custody or control of such
    property or other assets or of the business or operations of the
    

80

 

		
	 	
    Borrower or of its share capital, or acquires
    majority ownership of the Borrower, or takes any action for the
    dissolution or disestablishment of the Borrower or any action
    that would prevent the Borrower or its officers from carrying on
    the Borrower’s business or operations or a substantial part
    thereof.
    

		
	(f)	
    Bankruptcy. A decree
    or order by a court is entered against (i) the Borrower,
    (ii) ClearWave, or (iii) any Operating Shareholder
    which is a Shareholder or which is a holder of Permitted High
    Yield Back to Back Debt (any such party referred to in
    Subparagraph (i), (ii) or (iii), a “Relevant
    Person”) adjudging any Relevant Person bankrupt or
    insolvent or ordering the winding up or liquidation of its
    affairs; or a petition is filed seeking reorganization,
    administration, arrangement, adjustment, composition or
    liquidation of or in respect of any Relevant Person under any
    applicable law (unless, if such petition is filed by a party
    other than the Borrower or any Operating Shareholder, is not
    consented to by the Borrower or any Operating Shareholder, and
    is, in the opinion of the Bank acting reasonably, frivolous or
    vexatious, such petition is vacated or discharged within
    90 days (in case of a petition filed in Romania) or 30 days
    (in case of a petition filed in any jurisdiction other than
    Romania) of such filing); or a receiver, administrator,
    liquidator, assignee, trustee, sequestrator, secured creditor or
    other similar official is appointed over or in respect of any
    Relevant Person or any substantial part of its property or
    assets or any Relevant Person institutes proceedings to be
    adjudicated bankrupt or insolvent, or consents to the
    institution of bankruptcy or insolvency proceedings against it,
    or files a petition or answer or consent seeking reorganization,
    administration, relief or liquidation under any applicable law,
    or consents to the filing of any such petition or to the
    appointment of a receiver, administrator, liquidator, assignee,
    trustee, sequestrator, secured creditor or other similar
    official of any Relevant Person or of any substantial part of
    its property, or makes an assignment for the benefit of
    creditors, or admits in writing its inability to pay its debts
    generally as they become due; or any other event occurs which
    under any applicable law would have an effect analogous to any
    of the events listed in this Section.
    

		
	(g)	
    Financial Debt. Any
    Financial Debt of the Borrower (other than the Bank Loan) which
    exceeds $1,000,000 or any Financial Debt of any holder of
    Permitted High Yield Back to Back Debt in excess of $50,000,000
    is not paid when due; or a default of any nature occurs under
    any agreement pursuant to which there is outstanding any such
    Financial Debt, such default continues beyond any original
    applicable period of grace and the holder of such Financial Debt
    is entitled to accelerate such Financial Debt; or any such
    Financial Debt becomes prematurely due and payable or is placed
    on demand.
    
	 
	(h)	
    Adverse Change. Any
    circumstance or event occurs which, in the reasonable opinion of
    the Bank, is likely to have a material adverse effect on the
    Project, the business, operations or financial condition of the
    Borrower, or the ability of the Borrower to perform any of its
    obligations under any Financing Agreement.
    

		
	(i)	
    Termination or Adverse Amendment of the
    Licenses. Either License is terminated
    or amended by the Ministry in a manner which, in the Bank
    ’s sole discretion, has a material adverse effect on the
    ability of the Borrower to perform any of its obligations under
    this Agreement, or, if the Ministry gives notice of its
    intention to so terminate or amend either License, the earlier
    to occur of (i) such termination or amendment or
    

81

 

		
	 	
    (ii) the date which is 90 days from the
    date on which the Ministry gives notice of such intention.
    

		
	(j)	
    Interconnection
    Agreements. The Romtelecom
    Interconnection Agreement or the Orange Romania Interconnection
    Agreement terminates or expires and is not renewed, or is
    amended or renewed in a manner that has a material adverse
    effect on the ability of the Borrower to perform any of its
    obligations under this Agreement, unless prior to such
    termination or non-renewal alternative arrangements in respect
    of the matters to which the Romtelecom Interconnection Agreement
    or the Orange Romania Interconnection Agreement, as applicable,
    relates have been made which are satisfactory to the Bank acting
    reasonably.
    

		
	(k)	
    Judgement. A final
    judgement or order for the payment of money in excess of
    $5,000,000 (or its equivalent in other currencies at then
    current rates of exchange) is rendered against the Borrower or
    its properties and such judgement or order shall continue
    unsatisfied or unstayed for a period of 15 consecutive days.
    

		
	(l)	
    Security Agreement Over
    Shares. Subject to Section 4.05
    of the Share Retention and Subordination Deed and
    Section 4.4 of the Security Agreement Over Shares, at any
    time the following condition fails to be met, and such failure
    has continued for a period of 30 days after notice thereof
    has been given to the Borrower by the Bank: 100% of the shares
    in the capital of the Borrower shall remain effectively subject
    to the security interest in favour of the Senior Lenders
    pursuant to the Security Agreement Over Shares.
    

		
	(m)	
    Illegality. At any
    time it is or becomes unlawful for the Borrower to perform or
    comply with any or all of its obligations under any of the
    Project Agreements or any of the obligations of the Borrower
    under any of the Project Agreements are not or cease to be
    legal, valid, binding and enforceable.
    

		
	(n)	
    Change in Control.
    At any time ClearWave’s Majority Shareholder or any
    Controlling Shareholder is in breach of Section 4.01, 4.02
    or 4.03 of the Share Retention and Subordination Deed.
    

Section 7.02  Acceleration
and Cancellation

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

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

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

82

 

Section 7.03  Disbursements
Due on Demand

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

		
	(a)	
    require repayment of all or such part of the
    Declared Amount on such date as it may specify in such notice
    (whereupon the same shall become due and payable on the date
    specified together with accrued interest thereon and any other
    sums then owed by the Borrower hereunder) or withdraw its
    declaration with effect from such date as it may specify; and/or
    

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

Section 7.04  Automatic
Acceleration

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

ARTICLE VIII —
MISCELLANEOUS

Section 8.01  Term of
Agreement

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

Section 8.02  Entire
Agreement; Amendment and Waiver

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

Section 8.03  Notices

		
	(a)	
    Communications in writing. Any communication to
    be made under or in connection with this Agreement shall be made
    in writing and, unless otherwise stated, may be made by fax,
    letter or, subject to Section 8.03(d), electronic mail.
    

83

 

		
	(b)	
    Addresses. The
    address, fax number or e-mail address (and the department or
    officer, if any, for whose attention the communication is to be
    made) of each party for any communication or document to be made
    or delivered under or in connection with this Agreement is:
    

		
	 	
     For the Borrower:
    

		
	 	
     MobiFon S.A.

City Business Centre

3 Nerva Traian Street

Complex M l01, Sector 3

Bucharest, Romania

Attention: Chief Financial Officer

Fax:     (40)
(21) 302-1455

E-mail:  To be notified by the Borrower

    

		
	 	
     For the Bank:
    

		
	 	
     European Bank for Reconstruction and Development

One Exchange Square

London, EC2A 2JN

Attention:   Operation
Administration Unit

Telex:      8812161

Answerback: EBRDLG

Fax:        (44) (020) 7338-6100

Email:      To be
notified by the Bank

    

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

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

			
	 	(i)	
    if by way of fax, when received in legible form;
    or
    

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

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

		
	 	
    and, if a particular department or officer is
    specified as part of its address details provided under
    Section 8.03(b), if addressed to that department or officer.
    

84

 

		
	 	
    Any notice delivered in accordance with this
    Section 8.03 after 4:00 p.m. on a Business Day, or on a day
    which is not a Business Day, will be deemed to have been
    delivered at 10:00 a.m. on the next Business Day.
    

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

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

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

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

(e)  Use of websites.

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

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

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

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

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

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

85

 

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

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

Section 8.04  English
Language

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

Section 8.05  Financial
Calculations

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

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

Section 8.06  Rights,
Remedies and Waivers

		
	(a)	
    The rights and remedies of the Bank in relation
    to any misrepresentations or breach of warranty on the part of
    the Borrower shall not be prejudiced by any investigation by or
    on behalf of the Bank into the affairs of the Borrower, by the
    execution or the performance of this Agreement or by any other
    act or thing which may be done by or on behalf of the Bank in
    connection with this Agreement and which might, apart from this
    Section, prejudice such rights or remedies.
    
	 
	(b)	
    No course of dealing or waiver by the Bank in
    connection with any condition of disbursement under this
    Agreement shall impair any right, power or remedy of the Bank
    with respect to any other condition of disbursement or be
    construed to be a waiver thereof.
    

86

 

		
	(c)	
    No action of the Bank in respect of any
    Disbursement shall affect or impair any right, power or remedy
    of the Bank in respect of any other Disbursement. Without
    limiting the foregoing, the right of the Bank to require
    compliance with any condition under this Agreement which may be
    waived by the Bank in respect of any Disbursement is, unless
    otherwise notified to the Borrower by the Bank, expressly
    preserved for the purposes of any subsequent Disbursement.
    
	 
	(d)	
    No course of dealing and no delay in exercising,
    or omission to exercise, any right, power or remedy accruing to
    the Bank upon any default under this Agreement or any other
    agreement shall impair any such right, power or remedy or be
    construed to be a waiver thereof or an acquiescence therein. No
    single or partial exercise of any such right, power or remedy
    shall preclude any other or further exercise thereof or the
    exercise of any other right, power or remedy. No action of the
    Bank in respect of any such default, or acquiescence by it
    therein, shall affect or impair any right, power or remedy of
    the Bank in respect of any other default.
    
	 
	(e)	
    The rights and remedies provided in this
    Agreement and the other Financing Agreements are cumulative and
    not exclusive of any other rights or remedies, whether provided
    by applicable law or otherwise.
    

Section 8.07  Indemnification

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

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

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

		
	(b)	
    The Borrower acknowledges that the Bank is
    entering into this Agreement and has acted solely as a lender,
    and not as an advisor, to the Borrower. The Borrower
    

87

 

		
	 	
     represents and warrants that, in entering into
    the Financing Agreements, it has engaged, and relied upon advice
    given to it by, its own legal, financial and other professional
    advisors and it has not relied on and will not hereafter rely on
    any advice given to it by the Bank.
    

		
	(c)	
    If any sum (a “Sum”) due from the
    Borrower under this Agreement or any order, judgment, or award
    given or made in relation hereto has to be converted from the
    currency (the “First Currency”) in which such Sum is
    payable into another currency (the “Second Currency”)
    for the purpose of:
    

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

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

		
	(d)	
    Set-off:
    

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

Section 8.08  Governing
Law

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

Section 8.09  Arbitration
and Jurisdiction

		
	(a)	
    Any dispute, controversy or claim arising out of
    or relating to this Agreement, or the breach, termination or
    invalidity hereof, shall be settled by arbitration in accordance
    with the UNCITRAL Arbitration Rules as at present in force.
    There shall be one arbitrator and the appointing authority shall
    be the London Court of International Arbitration. The seat and
    place of arbitration shall be London, England and the English
    language shall be used throughout the arbitral proceedings. The
    parties hereby waive any rights under the Arbitration Act 1996
    to appeal any arbitration award to, or to seek determination of
    a preliminary point of law by, the Courts of England. The
    arbitral tribunal shall not be authorised to take or provide,
    and the Borrower agrees that it shall not seek from any judicial
    authority, any interim
    

88

 

		
	 	
     measures of protection or pre-award relief
    against the Bank, any provisions of UNCITRAL Arbitration Rules
    notwithstanding. The arbitral tribunal shall have authority to
    consider and include in any proceeding, decision or award any
    further dispute properly brought before it by the Bank or the
    Borrower insofar as such dispute arises out of any Financing
    Agreement, but, subject to the foregoing, no other parties or
    other disputes shall be included in, or consolidated with, the
    arbitral proceedings. In any arbitral proceeding, the
    certificate of the Bank as to any amount due to the Bank under
    any Financing Agreement shall be prima facie evidence of such
    amount.
    

		
	(b)	
    Notwithstanding Section 8.09(a), this
    Agreement and the other Financing Agreements, and any rights of
    the Bank arising out of or relating to this Agreement or any
    other Financing Agreement, may, at the option of the Bank, be
    enforced by the Bank in the courts of Romania or in any other
    courts having jurisdiction. For the benefit of the Bank, the
    Borrower hereby irrevocably submits to the non-exclusive
    jurisdiction of the courts of England with respect to any
    dispute, controversy or claim arising out of or relating to this
    Agreement or any other Financing Agreement, or the breach,
    termination or invalidity hereof or thereof. The Borrower hereby
    irrevocably designates, appoints and empowers The Law Debenture
    Corporate Services Limited at its registered office (being, on
    the date hereof, at 100 Wood Street, 5th Floor, London EC2V 7EX,
    England) to act as its authorised agent to receive service of
    process and any other legal summons in England for purposes of
    any such action or proceeding. The Borrower hereby irrevocably
    consents to the service of process or any other legal summons
    out of such courts by mailing copies thereof by registered
    airmail postage prepaid to its address specified herein. The
    Borrower covenants and agrees that, so long as it has any
    obligations under this Agreement, it shall maintain a duly
    appointed agent to receive service of process and any other
    legal summons in any legal action or proceeding brought by the
    Bank in England in respect of any Financing Agreement and shall
    keep the Bank advised of the identity and location of such
    agent. Nothing herein shall affect the right of the Bank to
    commence legal actions or proceedings against the Borrower in
    any manner authorised by the laws of any relevant jurisdiction.
    The commencement by the Bank of legal actions or proceedings in
    one or more jurisdictions shall not preclude the Bank from
    commencing legal actions or proceedings in any other
    jurisdiction, whether concurrently or not. The Borrower
    irrevocably waives any objection it may now or hereafter have on
    any grounds whatsoever to the laying of venue of any legal
    action or proceeding and any claim it may now or hereafter have
    that any such legal action or proceeding has been brought in an
    inconvenient forum.
    

Section 8.10  Privileges and
Immunities of the Bank

Nothing in this Agreement shall be construed as a
waiver, renunciation or other modification of any immunities,
privileges or exemptions of the Bank accorded under the
Agreement Establishing the European Bank for Reconstruction and
Development, international convention or any applicable law.

Section 8.11  Waiver of
Sovereign Immunity

The Borrower represents and warrants that this
Agreement and the incurring by the Borrower of the Bank Loan are
commercial rather than public or governmental acts and that the
Borrower is not entitled to claim immunity from legal
proceedings with respect to itself or any of its assets on the
grounds of sovereignty or otherwise under any law or in any

89

 

jurisdiction where an action may be brought for
the enforcement of any of the obligations arising under or
relating to this Agreement. To the extent that the Borrower or
any of its assets has or hereafter may acquire any right to
immunity from set-off, legal proceedings, attachment prior to
judgement, other attachment or execution of judgement on the
grounds of sovereignty or otherwise, the Borrower hereby
irrevocably waives such rights to immunity in respect of its
obligations arising under or relating to this Agreement.

Section 8.12  Successors and
Assigns; Third Party Rights.

		
	(a)	
    Binding Agreement.
    This Agreement shall be binding upon
    and enure to the benefit of each party hereto and its or any
    subsequent successors and transferees.
    

		
	(b)	
    No Assignments and Transfers by the Borrower.
    The Borrower shall not be entitled to
    assign or transfer all or any of its rights, benefits and
    obligations hereunder.
    

		
	(c)	
    Assignments and Transfers.
    The Bank may, at any time,
    (i) assign any of its rights and benefits hereunder, or
    (ii) grant Participations in all or any of its rights and
    benefits hereunder or (iii) transfer by novation any of its
    rights, benefits and obligations hereunder, provided that in
    respect of transfers (save in the case of any transfer
    (a) to any subsidiary or holding company of the Bank,
    (b) after the occurrence of the final Disbursement
    hereunder, the suspension or cancellation of the Bank Loan, or
    an Event of Default or Potential Event of Default, or
    (c) which occurs after the end of the Tranche II Commitment
    Period) and subject as provided in Section 8.12(d), no such
    assignment or transfer may be made without the prior written
    consent of the Borrower, such consent not to be unreasonably
    withheld or delayed and provided further for avoidance of doubt,
    that in no case shall the Borrower’s consent be required in
    respect of assigning or granting any Participation.
    

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

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

Section 8.13  Disclosure

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

90

 

Section 8.14  Counterparts

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

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

MOBIFON S.A.

	 	 	 
	
    
    By:
    

    	 	
    

Name:  James  J. Jackson

    Title:   Senior Vice President

    and Chief Financial Officer
    

EUROPEAN BANK FOR RECONSTRUCTION

AND DEVELOPMENT

	 	 	 
	
    
    By:
    

    	 	
    

Andrei Savelev

    Title:   Principal Banker
    

91

 

Exhibit A — Form of Disbursement
Application — Bank Loan

[To Be Typed on Letterhead of the Borrower]

[Date]

European Bank for Reconstruction and Development

One Exchange Square

London EC2A 2JN

United Kingdom

Attention: Operation Administration Unit

		
	Subject:	
    Operation No. 27720
    

Disbursement Application
No.                               1

Sir/ Madam:

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

	 	 	 	 	 
	
    
    Amount (in figures and words):
    

    	 	
	 	 
	 	 	
	 	 
	
    
    Value Date:
    

    	 	[As soon as possible, on a date selected
by the Bank in its discretion, but not later
than]2                3

	 	 	 	 	 
	
    
    Payment Instructions (Borrower’s Banking
    Details):

    	 	 	 	 
	
    
    Borrower’s Account Name:
    

    	
	 
	
    
    Borrower’s Account Number:
    

    	

	
    
    Borrower’s Bank Name:
    

    	

	
    
    Borrower’s Bank Address:
    

    	

	
    
    Borrower’s Bank Correspondent
    Details:

    	 	 	 	 
	
    
    Correspondent’s Name:4
    

    	

	
    
    Correspondent’s Address:
    

    	

	
    
     
    

    	

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

A-1

 

	 	 	 	 	 
	
    
    Borrower’s Bank’s Account Name:
    

    	 	

	
    
    Borrower’s Bank’s Account Number:
    

    	 	

	
    
    Reference:
    

    	 	

		
	4.	
    For the purposes of Section 3.07(e) of the
    Loan Agreement, [select one of the following alternatives][we do
    not elect that the above-requested Disbursement be subject to a
    fixed interest rate and acknowledge that therefore the
    Disbursement shall remain subject to a variable interest rate
    determined in accordance with Section 3.07(a) through
    (c).][or][we hereby elect that the A Loan portion of the
    above-requested Disbursement be subject to a fixed interest
    rate, with effect as of the date of Disbursement, and that the
    applicable A Loan Interest Conversion Period for such
    Disbursement be from the date of Disbursement up to and
    including [specify chosen Interest Payment Date].][Identify any
    documents the Borrower is providing in satisfaction of the
    requirements of Section 3.07(e)(1)].
    
	 
	5.	
    For the purposes of Section 4.03(b) of the
    Loan Agreement, we hereby represent and warrant that:
    

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

		
	6.	
    For the purpose of Section 4.03(g) we hereby
    represent and warrant that, upon giving effect to such
    Disbursement, and any concurrent disbursements under the EDC
    Loan and the NIB Loan, the total Disbursements under the Bank
    Loan shall remain pro rata as among the Bank Loan, the
    EDC Loan, and the NIB Loan.
    

A-2

 

		
	7.	
    The representations and warranties made in
    paragraphs 5 and 6 above on this date will continue to be true
    on and as of the date of such Disbursement with the same effect
    as though such representations and warranties had been made on
    and as of the date of such Disbursement. If any such
    representation or warranty is no longer true on or prior to or
    as of the date of such Disbursement, we shall immediately notify
    the Bank and shall, upon demand by the Bank, repay any amount
    which has been or is disbursed by the Bank in respect of such
    Disbursement.
    

Yours faithfully,

MOBIFON S.A.

By:

Authorised Representative5

		
	5	
    As named in the Certificate of Incumbency and
    Authority.
    

A-3

 

Exhibit B — Form of Certificate of
Incumbency and Authority

[To Be Typed on Letterhead of the Borrower]

[Date]

European Bank for Reconstruction and Development

One Exchange Square

London EC2A 2JN

United Kingdom

Attention:  Operation Administration
Unit

		
	Subject:	
    Operation No. 27720
    

Certificate of Incumbency and
Authority6

Sir/ Madam:

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

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

	 	 	 	 	 
	
    
    NAME

    	 	
    OFFICE	 	
    SPECIMEN SIGNATURE
	
	 	
	 	

	
	 	
	 	

	
	 	
	 	

	
	 	
	 	

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

B-1

 

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

Yours faithfully,

MOBIFON S.A.

	 	 	 
	
    
    By:
    

    	 	
    

Name:

    Title:   [President]

    [Chairman of the Board of Directors]

    [Chief Executive Officer]
    

B-2

 

Exhibit C — Form of Letter to
Auditors

[To Be Typed on Letterhead of the Borrower]

[Date]

[Name of Auditors]

[Address]

Sir/ Madam:

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

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

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

Yours faithfully,

MOBIFON S.A.

	 	 	 
	
    
    By:
    

    	 	
    

Authorised Representative
    

Enclosure: Loan Agreement

		
	cc:	
    European Bank for Reconstruction and Development

One Exchange Square

London EC2A 2JN

United Kingdom

Attention:  Operation Administration
Unit

Subject:   Operation No. 27720
    

C-1

 

SCHEDULE A — LIST OF MATERIAL
AGREEMENTS

Agreements

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

          Interconnection
Agreements & Amendments

	 	 	 	 	 
	Operator		Dated
	
		

	
    
    Romtelecom

    	 	 	6-Aug-97	 
	
    
    Additional Act no.1
    

    	 	 	12-Mar-98	 
	
    
    Additional Act no.2
    

    	 	 	2-May-99	 
	
    
    Additional Act no.3
    

    	 	 	30-Jul-99	 
	
    
    Orange (Mobil Rom)

    	 	 	12-May-99	 
	
    
    Additional Act no.1
    

    	 	 	28-May-99	 
	
    
    Additional Act no.2
    

    	 	 	9-Oct-00	 
	
    
    TELEMOBIL SA

    	 	 	31-Mar-01	 
	
    
    Additional Act no.1
    

    	 	 	20-Mar-02	 
	
    
    Additional Act no.2
    

    	 	 	9-Aug-02	 
	
    
    Cosmorom SA

    	 	 	20-Mar-00	 
	
    
    Additional Act no.1
    

    	 	 	12-Apr-01	 

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

Sched A-1

 

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

Corporate Documents

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

Sched A-2

 

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

Sched A-3

 

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

Sched A-4

 

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

Sched A-5

 

ANNEX A-1 TO SCHEDULE A — MAJOR
LEASES

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

	
    
    Bacau
    

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Annex A-1

 

ANNEX A-2 TO SCHEDULE A — MATERIAL
AGREEMENTS

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

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

Annex A-2-1

 

SCHEDULE B

FORM OF COMPLIANCE CERTIFICATE

 

		
	To:	
    European Bank for Reconstruction and Development
    

One Exchange Square

London, EC2A 2JN

Attention: Operation Administration Unit

Date:

Dear Sirs,

We refer to the loan agreement dated,
27 August 2002 (the “Loan Agreement”)
between Mobifon S.A. (the “Borrower”) and
European Bank for Reconstruction and Development
(the “Bank”).

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

We confirm that

[Insert details of financial conditions to be
certified.

	 	 	 	 	 
	
    
    [Signed:
    

    	 	
    
Director
    	 	
    
Director
    

or

for and on behalf of

[name of Auditors of the Borrower]

Sched B-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}]]