Document:

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                                                                     EXHIBIT 4.9

                                                               EXECUTION VERSION

                                U.S.$ 150,000,000

                                CREDIT AGREEMENT

                           Dated as of March 22, 2005

                                      Among

                  CERVECERIA Y MALTERIA QUILMES S.A.I.C.A. Y G.

                                   as Borrower

                                       and

                           THE BRANCH OF CITIBANK N.A.

                    ESTABLISHED IN THE REPUBLIC OF ARGENTINA

                                    as Lender

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                                TABLE OF CONTENTS

                                    ARTICLE I

                        DEFINITIONS AND ACCOUNTING TERMS

<TABLE>
<S>                                                                                                                  <C>
SECTION 1.01. Certain Defined Terms..............................................................................     1
SECTION 1.02. Computation of Time Periods; Other Definitional Provisions.........................................    12
SECTION 1.03. Accounting Terms...................................................................................    12

                                                      ARTICLE II

                                             AMOUNTS AND TERMS OF THE LOAN

SECTION 2.01. The Loan...........................................................................................    12
SECTION 2.02. Notice of Borrowing................................................................................    12
SECTION 2.03. Repayment of Principal.............................................................................    13
SECTION 2.04. Optional Prepayment With Respect to Tax Matters....................................................    13
SECTION 2.05. Mandatory Prepayments..............................................................................    14
SECTION 2.06. Interest...........................................................................................    15
SECTION 2.07. Payments and Computations..........................................................................    15
SECTION 2.08. Additional Amounts.................................................................................    17
SECTION 2.09. Evidence of Indebtedness...........................................................................    20

                                                      ARTICLE III

SECTION 3.01. Conditions Precedent...............................................................................    21

                                                      ARTICLE IV

                                            REPRESENTATIONS AND WARRANTIES

SECTION 4.01. Representations and Warranties.....................................................................    21

                                                       ARTICLE V

                                               COVENANTS OF THE BORROWER

SECTION 5.01. Affirmative Covenants..............................................................................    27
SECTION 5.02. Negative Covenants.................................................................................    30

                                                      ARTICLE VI

                                                   EVENTS OF DEFAULT

SECTION 6.01. Events of Default..................................................................................    33
</TABLE>

                                        i
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                                   ARTICLE VII

                                  MISCELLANEOUS

<TABLE>
<S>                                                                                                                  <C>
SECTION 7.01. Amendments, Etc....................................................................................    36
SECTION 7.02. Notices, Etc.......................................................................................    36
SECTION 7.03. No Waiver; Remedies................................................................................    36
SECTION 7.04. Costs and Expenses.................................................................................    36
SECTION 7.05. Waiver of Set-off..................................................................................    38
SECTION 7.06. Binding Effect.....................................................................................    38
SECTION 7.07. Permitted Assignments..............................................................................    38
SECTION 7.08. Currency Rate Indemnity............................................................................    38
SECTION 7.09. Foreign Exchange Restrictions......................................................................    38
SECTION 7.10. Execution in Counterparts..........................................................................    39
SECTION 7.11. Jurisdiction, Etc..................................................................................    39
SECTION 7.12. Waiver of Immunities...............................................................................    40
SECTION 7.13. Governing Law......................................................................................    40
SECTION 7.14. Waiver of Jury Trial...............................................................................    40
SECTION 7.15. Payment for Consent................................................................................    40
</TABLE>

Exhibit A     -       Form of Notice of Borrowing

Exhibit B-1   -       Form of Promissory Note

Exhibit B-2   -       Form of Reconocimiento de Deuda

Exhibit C     -       Form of Assignment and Acceptance

                                       ii

<PAGE>

                                CREDIT AGREEMENT

            CREDIT AGREEMENT (this "AGREEMENT") dated as of March 22, 2005 among
Cerveceria y Malteria Quilmes S.A.I.C.A. y G., an Argentine sociedad anonima
(the "BORROWER"), and the Branch of Citibank N.A. established in the Republic of
Argentina, as lender (the "LENDER").

                             PRELIMINARY STATEMENTS

            (1) The Borrower has requested that the Lender extend a loan to the
Borrower in a principal amount not to exceed U.S.$ 150,000,000, the proceeds of
which will be used to prepay certain financial debt of the Borrower, for general
corporate purposes and fees, costs and expenses due pursuant to the Additional
Transaction Documents (as defined below);

            (2) On the Issue Date (as defined below) immediately after execution
of this Agreement, (a) the Argentine Beverages Financial Trust, a financial
trust (fideicomiso financiero) organized under the laws of Argentina (the
"TRUST") shall be established, and (ii) the Lender, as grantor of the Trust,
will assign all of its interests in respect of the Loan to ABN AMRO Trust
Company (Argentina) S.A., acting on behalf of the Trust (in such capacity, the
"FINANCIAL TRUSTEE"), pursuant to an Assignment Agreement between the Lender and
the Financial Trustee, substantially in the form of Exhibit C hereto (the
"ASSIGNMENT AGREEMENT"), and (b) the Financial Trustee (in that regard, the
"ISSUER") will issue the Trust Notes (as defined below) pursuant to the
Indenture (as defined below);

            (3) From and after the assignment of the Loan pursuant to the
Assignment Agreement, the Financial Trustee will be the Lender for all purposes
hereunder and under the Additional Transaction Documents and the Branch of
Citibank N.A. established in the Republic of Argentina will have no continuing
rights or obligations hereunder or thereunder;

            (4) After the assignment of the Loan as described in the Assignment
Agreement, the Financial Trustee will be treated as the Lender for all purposes
hereunder and the Branch of Citibank N.A. established in the Republic of
Argentina will have no continuing rights or obligations thereafter hereunder;

            NOW, THEREFORE, in consideration of the premises and the mutual
covenants and agreements contained herein, the parties hereto hereby agree as
follows:

                                   ARTICLE I

                        DEFINITIONS AND ACCOUNTING TERMS

            SECTION 1.01. Certain Defined Terms. As used in this Agreement, the
following terms shall have the following meanings (such meanings to be equally
applicable to both the singular and plural forms of the terms defined):

            "ADDITIONAL AMOUNTS" has the meaning specified in Section 2.08(a).

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            "ADDITIONAL TRANSACTION DOCUMENTS" means the Assignment Agreement,
      the Purchase Agreement, the Expense Agreement, and all documents entered
      into in connection therewith.

            "ADJUSTED EBITDA" means, in respect of any period, operating income
      (expense) plus depreciation and amortization determined on a consolidated
      basis.

            "AFFILIATE" of any specified Person means:

            (a) any other Person directly or indirectly controlling or
            controlled by or under direct or indirect common control with such
            specified Person, or

            (b) any other Person who is a director or officer of:

                  (1) such specified Person,

                  (2) any Subsidiary of such specified Person, or

                  (3) any Person described in clause (a) above.

            For the purposes of this definition, "control" when used with
      respect to any Person means the power to direct the management and
      policies of such Person, directly or indirectly, whether through the
      ownership of voting securities, by contract or otherwise; and the terms
      "controlling" and "controlled" have meanings correlative to the foregoing.
      For purposes of Section 4.02(g) only, "Affiliate" shall also mean any
      beneficial owner (as defined in Rule 13d-3 under the Exchange Act) of
      shares representing 25% or more of the total voting power of the voting
      stock of the Borrower and any Person who would be an Affiliate of any such
      beneficial owner pursuant to the first sentence hereof.

            "AFFILIATE TRANSACTION" has the meaning specified in Section
      5.02(e).

            "AMBEV" means the Companhia de Bebidas das Americas - AMBEV, a
      Brazilian corporation.

            "ARGENTINA" means the Republic of Argentina.

            "ARGENTINE GAAP" means generally accepted accounting principles in
      Argentina as in effect from time to time.

            "ASSIGNMENT AGREEMENT" has the meaning specified in the recital of
      parties to this Agreement.

            "AUTHORIZED AGENT" has the meaning set forth in Section 7.11(c).

            "BAC" means Beverage Associates (BAC) Corp., a corporation organized
      under the laws of the British Virgin Islands.

            "BOARD OF DIRECTORS" means the board of directors of the Borrower or
      any committee thereof, duly authorized to act on behalf of such board.

                                       2
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            "BORROWER" has the meaning specified in the recital of parties to
      this Agreement.

            "BORROWER'S ACCOUNT" means the account of the Borrower maintained by
      the Borrower with the Lender at Citibank Argentina, Bartolome Mitre 530,
      C1036AAJ, Buenos Aires, Argentina, Account No. 0/060379/025, CBU
      0168888-100000603790254, CUIT 33508358259, or such other account as the
      Borrower shall specify in writing to the Lender.

            "BUSINESS DAY" means a day other than a Saturday, Sunday or a day of
      the year on which banks are required or authorized by law to close in New
      York City or Buenos Aires, Argentina.

            "CAPITAL STOCK" means, with respect to any Person, any shares or
      other equivalents (however designated) of any class of corporate stock or
      partnership interests or any other participations, rights, warrants,
      options or other interests in the nature of an equity interest in such
      Person but excluding any debt security convertible or exchangeable into
      such equity interest.

            "CHANGE OF CONTROL" means the occurrence of any of the following
      events:

                  (a) if any "person" or "group" (as such terms are used in
            Sections 13(d) and 14(d) of the Exchange Act or any successor
            provisions to either of the foregoing), including any group acting
            for the purpose of acquiring, holding, voting or disposing of
            securities within the meaning of Rule 13d-5(b)(1) under the Exchange
            Act, other than any one or more of the Permitted Holders, becomes
            the "beneficial owner" (as defined in Rule 13d-3 under the Exchange
            Act), directly or indirectly, of a majority of the total voting
            power of the voting stock of the Borrower;

                  (b) the sale, transfer, assignment, lease, conveyance or other
            disposition (other than by way of merger or consolidation), directly
            or indirectly, of all or substantially all the assets of the
            Borrower;

                  (c) the approval by the shareholders of the Borrower of any
            plan of liquidation or dissolution of the Borrower;

                  (d) AmBev or any Person or Persons, directly or indirectly
            controlling AmBev ceases to hold, directly or indirectly, 39.50% of
            the total voting power of the voting stock of the Borrower; or

                  (e) at any time, the Permitted Holders, together or not with
            BAC, shall no longer have the direct or indirect right, whether
            through the ownership of capital stock, by means of contractual
            rights, or otherwise, to elect a majority of the Board of Directors.

            "CHANGE OF CONTROL OFFER" has the meaning set forth in Section
      2.05(b).

                                        3
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            "CHANGE OF CONTROL PURCHASE PRICE" has the meaning set forth in
      Section 2.05(b).

            "CONSOLIDATED NET ASSETS" means the total amount of assets of the
      Borrower and its consolidated Subsidiaries (less applicable depreciation,
      amortization and other valuation reserves), except to the extent resulting
      from the write-ups of capital assets, after deducting therefrom all
      current liabilities of the Borrower and its consolidated Subsidiaries
      (excluding intercompany items).

            "DEFAULT" means any event which is, or after notice or passage of
      time or both would be, an Event of Default.

            "ENVIRONMENTAL LAW" means any Federal, state, local or foreign
      statute, law, ordinance, rule, regulation, code, order, writ, judgment,
      injunction, decree or judicial or agency interpretation, policy or
      guidance relating to pollution or protection of the environment, health,
      safety or natural resources, including, without limitation, those relating
      to the use, handling, transportation, treatment, storage, disposal,
      release or discharge of hazardous materials.

            "ENVIRONMENTAL PERMIT" means any permit, approval, identification
      number, license or other authorization required under any Environmental
      Law.

            "EVENTS OF DEFAULT" has the meaning specified in Section 6.01.

            "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
      amended.

            "EXPENSE AGREEMENT" means the Expense Reimbursement and Indemnity
      Agreement dated as of the date hereof between the Borrower and the
      Financial Trustee.

            "FAIR MARKET VALUE" means, with respect to any assets or property,
      the price that could be negotiated in an arm's length free market
      transaction, for cash, between a willing seller and a willing buyer,
      neither of whom is under undue pressure or compulsion to complete the
      transaction. Fair Market Value shall be determined, except as otherwise
      provided, as follows:

                  (a) if such property has a Fair Market Value equal to or less
            than U.S.$10 million, by any Officer, or

                  (b) if such property has a Fair Market Value in excess of
            U.S.$10 million, by an Independent Financial Advisor and evidenced
            by a written opinion from such Independent Financial Advisor, dated
            within 30 days of the relevant transaction, delivered to the Lender.

            "FINANCIAL STATEMENTS" has the meaning set forth in Section 4.01(m).

            "FINANCIAL TRUSTEE" has the meaning specified in the recital of
      parties to this Agreement.

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<PAGE>

            "GOVERNMENT AUTHORITIES" has the meaning set forth in Section
      4.01(g).

            "GUARANTEE" of any Person means any obligation, contingent or
      otherwise, of such Person directly or indirectly guaranteeing any
      Indebtedness of any other Person and any obligation, direct or indirect,
      contingent or otherwise, of such Person:

                  (a) to purchase or pay (or advance or supply funds for the
            purchase or payment of) Indebtedness of such other Person (whether
            arising by virtue of partnership arrangements, or by agreements to
            keep-well, to purchase assets, goods, securities or services, to
            take-or-pay or to maintain financial statement conditions or
            otherwise), or

                  (b) entered into for the purpose of assuring in any other
            manner the obligee of such Indebtedness of the payment thereof or to
            protect such obligee against loss in respect thereof (in whole or in
            part);

            provided, however, that the term "Guarantee" shall not include:

                        (1) endorsements for collection or deposit in the
                  ordinary course of business, or purchaser and customer
                  arrangements in the ordinary course of business, or

                        (2) a contractual commitment by one Person to invest in
                  another Person.

            The term "Guarantee" used as a verb has a corresponding meaning. The
      term "Guarantor" shall mean any Person Guaranteeing any obligation.

            "HEDGE AGREEMENTS" means any interest rate protection agreements,
      interest rate swaps, cap or collar agreements, interest rate future or
      option contracts, currency swap agreements, currency future or option
      contracts and other similar agreements allowing the Borrower to hedge
      financial and operational risk.

            "INCUR" means, with respect to any Indebtedness or other obligation
      of any Person, to create, issue, incur (by merger, conversion, exchange or
      otherwise), extend, assume, Guarantee or become liable in respect of such
      Indebtedness or other obligation or the recording, as required pursuant to
      Argentine GAAP or otherwise, of any such Indebtedness or obligation on the
      balance sheet of such Person (and "Incurrence" and "Incurred" shall have
      meanings correlative to the foregoing); provided, however, that any
      Indebtedness or other obligations of a Person existing at the time such
      Person becomes a Subsidiary of another Person (whether by merger,
      consolidation, acquisition or otherwise) shall be deemed to be Incurred by
      such Subsidiary at the time it becomes such a Subsidiary.

            Solely for purposes of determining compliance with Section 5.02(b),
      the following will not be deemed to be the Incurrence of Indebtedness:

                                        5
<PAGE>

                  (1) amortization of debt discount or the accretion of
            principal with respect to a non-interest bearing or other discount
            security,

                  (2) the capitalization of interest that is due and payable at
            such time on existing Indebtedness,

                  (3) the payment of regularly scheduled interest in the form of
            additional Indebtedness of the same instrument or the payment of
            regularly scheduled dividends on Capital Stock in the form of
            additional Capital Stock of the same class and with the same terms,

                  (4) the obligation to pay a premium in respect of Indebtedness
            arising in connection with the issuance of a notice of redemption or
            the making of a mandatory offer to purchase such Indebtedness, and

                  (5) a change in Argentine GAAP that results in an obligation
            of such Person that exists at such time, and is not theretofore
            classified as Indebtedness, becoming Indebtedness.

            "INDEBTEDNESS" of any Person means, without duplication,

                  (a) all indebtedness of such Person for borrowed money;

                  (b) all obligations issued, undertaken or assumed as the
            deferred purchase price of property or services (other than trade
            accounts payable for which there is no interest due and payable
            (other than default interest) according to the terms of such
            obligations and which are incurred in the ordinary course of such
            Person's business but only if and for so long as the same remain
            payable on customary trade terms);

                  (c) all reimbursement or payment obligations of such Person
            with respect to letters of credit, bankers' acceptances, surety
            bonds and similar instruments, except for reimbursement or payment
            obligations with respect to letters of credit (including trade
            letters of credit) securing obligations (other than obligations
            described in clause (a) above or clauses (d), (g) or (h) below, but
            in the case of obligations under clause (g) or (h) below, solely to
            the extent that they are in respect of obligations of the type
            described in clause (a) or (d)) entered into in the ordinary course
            of business of such Person to the extent such letters of credit are
            not drawn upon or, if drawn upon, to the extent such drawing is
            reimbursed no later than the fifth business day following receipt by
            such Person of a demand for reimbursement;

                  (d) all obligations of such Person evidenced by notes, bonds,
            debentures or similar instruments, including obligations so
            evidenced incurred in connection with the acquisition of property,
            assets or businesses;

                  (e) all indebtedness of such Person created or arising under
            any conditional sale or other title retention agreement, or incurred
            as financing, in

                                        6
<PAGE>

            either case with respect to property acquired by such Person (even
            though the rights and remedies of the seller or lender under such
            agreement in the event of default are limited to repossession or
            sale of such property in which case the amount of such Indebtedness
            shall be the lesser of (i) the Fair Market Value of such property at
            such date of determination and (ii) the amount of the Indebtedness
            secured);

                  (f) the net amount of obligations of such Person with respect
            to Hedge Agreements;

                  (g) all direct or indirect guaranties in respect of, and all
            obligations (contingent or otherwise) of such Person to purchase or
            otherwise acquire, or otherwise assure a creditor against loss in
            respect of, any indebtedness referred to in clauses (a) through (f)
            above; and

                  (h) all indebtedness referred to in clauses (a) through (g)
            above secured by (or for which the holder of such Indebtedness has
            an existing right, contingent or otherwise, to be secured by) any
            Lien upon or in property (including accounts and contract rights)
            owned by such Person (even though such Person has not assumed or
            become liable for the payment of such indebtedness in which case the
            amount of such Indebtedness shall be the lesser of (i) the Fair
            Market Value of the property subject to the Lien at such date of
            determination and (ii) the amount of the Indebtedness secured).

            "INDEBTEDNESS TO ADJUSTED EBITDA RATIO" means, as of any date of
      determination, the ratio of (1) Indebtedness of the Borrower on a
      consolidated basis on that date, to (2) Adjusted EBITDA for the then most
      recently concluded period of four consecutive fiscal quarters.

            "INDEMNIFIED PARTY" has the meaning specified in Section 7.04(b).

            "INDENTURE" means the Indenture dated as of March 22, 2005 among the
      Issuer, The Bank of New York, as the Trust Notes Trustee, Note
      Co-Registrar, New York Paying Agent and Transfer Agent, Banco Rio de la
      Plata S.A., as Argentine Paying Agent, Registrar and the Trust Notes
      Trustee's Representative in Argentina, and The Bank of New York
      (Luxembourg) S.A., as Luxembourg Listing, Paying and Transfer Agent.

            "INDEPENDENT FINANCIAL ADVISOR" means an investment banking or
      consulting firm of international standing or any third party appraiser of
      international standing, provided that such firm or appraiser is not an
      Affiliate of the Borrower.

            "INTEREST PAYMENT DATE" has the meaning set forth in Section
      2.06(c).

            "INTEREST RATE" has the meaning set forth in Section 2.06(a).

            "ISSUE DATE" means the date on which the Loan is initially issued.

                                        7
<PAGE>

            "ISSUER" has the meaning specified in the recital of parties to this
      Agreement.

            "LENDER" has the meaning specified in the recital of parties to this
      Agreement.

            "LENDER'S ACCOUNT" means the account of the Lender as the Lender
      shall specify in writing to the Borrower.

            "LIEN" means any mortgage, pledge, security interest, aval,
      encumbrance, lien or charge of any kind (including, without limitation,
      any conditional sale or other title retention agreement or lease in the
      nature thereof or any agreement to give any security interest), other than
      a title retention agreement in connection with the purchase of goods in
      the ordinary course of business.

            "LOAN" has the meaning set forth in Section 2.01.

            "MATERIAL ADVERSE CHANGE" means any material adverse change on the
      business, condition (financial or otherwise), operations, performance,
      properties or earnings of the Borrower and its Subsidiaries taken as a
      whole.

            "MATERIAL ADVERSE EFFECT" means any material adverse effect on the
      business, condition (financial or otherwise), operations, performance,
      properties or earnings of the Borrower and its Subsidiaries taken as a
      whole.

            "MATURITY DATE" means March 22, 2012.

            "NOTEHOLDERS" means the holders of the Trust Notes.

            "OFFERING MEMORANDUM" means the offering memorandum dated March 15,
      2005 prepared in connection with the sale of the Trust Notes.

            "OFFICER" means any authorized signatory of the Borrower designated
      by the Board of Directors.

            "OFFICERS' CERTIFICATE" means a certificate signed by two Officers,
      at least one of whom shall be the principal executive officer or principal
      financial officer or principal legal officer of the Borrower, and
      delivered to the Lender.

            "OPINION OF COUNSEL" means a written opinion from legal counsel who
      is reasonably acceptable to the Lender. The counsel may be an employee of
      or counsel to the Borrower or the Lender.

            "OTHER TAXES" means any stamp, transfer, court or documentary Taxes,
      or any excise or property Taxes or similar Taxes imposed by a Taxing
      Jurisdiction. For the avoidance of doubt, "Other Taxes" shall not include
      any Taxes imposed with respect to income.

                                        8
<PAGE>

            "OUTSTANDING" means with respect to the Loan, as of the date of
      determination, the Loan made under this Agreement, except the reduced
      portion or portions of the Loan, as provided herein and, except:

         (i)  any portion of the Loan that was prepaid; and

         (ii) any portion of the Loan for which payment, prepayment or
              redemption money in the necessary amount has been deposited
              with the Financial Trustee, in its capacity as Lender under
              this Agreement; provided that notice of such prepayment or
              repurchase has been duly given pursuant to this Agreement;

            provided, however, that in determining whether the holders of the
      requisite principal amount of the Outstanding Loan have given any request,
      demand, authorization, direction, notice, consent or waiver hereunder, any
      portion of the Loan owned by the Borrower or any Subsidiary or Affiliate
      of the Borrower shall be disregarded and deemed not to be Outstanding,
      except that, in determining whether the Lender shall be protected in
      relying upon any such request, demand, authorization, direction, notice,
      consent or waiver, only the portion of the Loan which the Lender knows to
      be so borrowed shall be so disregarded. The portion of the Loan so owned
      which has been pledged in good faith may be regarded as Outstanding if the
      pledgee establishes to the satisfaction of the Lender the pledgee's right
      so to act with respect to such portion of the Loan and that the pledgee is
      not the Borrower or any Subsidiary or Affiliate of the Borrower.

            "PAYMENT ACCOUNT" means the special purpose non-interest bearing
      deposit account that the Trust Notes Trustee shall establish prior to or
      on the Issue Date and, until the Trust Notes and all accounts due in
      respect thereof have been paid in full, maintain into which all payments
      required to be made by the Issuer under or with respect to the Trust Notes
      shall be deposited.

            "PAYMENT DATE" means any Principal Payment Date, Interest Payment
      Date or any date of payment provided for hereunder.

            "PERMITTED ASSIGNMENTS" has the meaning specified in Section 7.07.

            "PERMITTED HOLDERS" means AmBev and any Person or Persons that,
      individually or collectively control, directly or indirectly, AmBev at any
      time.

            "PERMITTED LIENS" means:

                  (a) any Lien on any property acquired, constructed or improved
            by the Borrower or any of its Subsidiaries after the Issue Date
            which is created, incurred or assumed contemporaneously with, or
            within 12 months after, that acquisition (or in the case of any such
            property constructed or improved, after the completion or
            commencement of commercial operation of such property, whichever is
            later) to secure or provide for the payment of any part of the
            purchase price of such property or the costs of that construction or
            improvement (including costs such as escalation, interest during
            construction and finance costs); provided that in the case of any
            such construction or improvement the Lien shall not apply to any

                                        9
<PAGE>

            other property owned by the Borrower or any of its Subsidiaries,
            other than any unimproved real property on which the property so
            constructed, or the improvement, is located;

                  (b) any Lien on any property acquired from a corporation or
            any other Person which is merged with or into the Borrower or its
            Subsidiaries, or any Lien existing on property of a corporation or
            any other Person which existed at the time such corporation becomes
            a Subsidiary of the Borrower and, in either case, which is not
            created as a result of or in connection with or in anticipation of
            any such transaction (unless such Lien was created to secure or
            provide for the payment of any part of the purchase price of such
            corporation);

                  (c) Liens existing on the Issue Date not otherwise described
            in clauses (a) and (b) above;

                  (d) any Lien which secures only Indebtedness owing by a
            Subsidiary to the Borrower, to one or more Subsidiaries or to the
            Borrower and one or more Subsidiaries;

                  (e) any extension, renewal or replacement (or successive
            extensions, renewals or replacements), in whole or in part, of any
            Lien referred to in the foregoing clauses (a) through (d) inclusive;
            provided that the principal amount of Indebtedness secured thereby
            shall not exceed the principal amount of Indebtedness so secured at
            the time of such extension, renewal or replacement, and that such
            extension, renewal or replacement shall be limited to all or a part
            of the property which secured the Lien so extended, renewed or
            replaced (plus improvements on such property); and

                  (f) Liens not otherwise permitted by clauses (a) through (e)
            above securing Indebtedness in a principal amount not in excess of
            10% of Consolidated Net Assets, as determined based on the
            consolidated balance sheet of the Borrower as of the end of the most
            recent fiscal quarter for which financial statements have been
            provided to the Lender, prior to the date any such Lien shall be
            Incurred.

                  For purposes of this definition, the term "Indebtedness" shall
            be deemed to include interest on such Indebtedness.

            "PERSON" means an individual, partnership, corporation, limited
      liability company, business trust, joint stock company, trust,
      unincorporated association, joint venture or any nation or government, any
      state, province or other political subdivision thereof, any central bank
      (or similar monetary or regulatory authority) thereof, and any entity
      exercising executive, legislative, judicial, regulatory or administrative
      functions of or pertaining to government.

            "PERSONAL ASSETS TAX" means the tax established in Argentina
      pursuant to the Argentine Law of Tax on Personal Assets No.23,966 (as
      amended) and Decree No. 127/1996.

                                       10
<PAGE>

            "PRINCIPAL PAYMENT DATE" has the meaning set forth in Section 2.03.

            "PURCHASE AGREEMENT" means the Purchase Agreement dated March 15,
      2005 among the Borrower, the Financial Trustee and Citigroup Global
      Markets Inc., as the initial purchaser of the Trust Notes.

            "RESPONSIBLE OFFICER" means the chief executive officer, chief
      financial officer, general manager, associate general manager or
      equivalent senior executive officer of the Borrower.

            "SALE AND LEASE-BACK TRANSACTION" means any transaction or series of
      related transactions pursuant to which the Borrower or any of its
      Subsidiaries sells or transfers any property to any Person with the
      intention of taking back a lease of such property.

            "SPECIFIED PROPERTY" means (i) any manufacturing facility, including
      land and buildings and other improvements thereon and equipment located
      therein, (ii) any executive offices, administrative buildings, and
      research and development facilities, including land and buildings and
      other improvements thereon and equipment located therein, and (iii) any
      intangible assets, including, without limitation, any brand names,
      trademarks, copyrights, patents and similar rights and any income
      (licensing or otherwise), proceeds of sale or other revenue therefrom, in
      each case of the Borrower or any of its Subsidiaries. For the avoidance of
      doubt, "Specified Property" excludes any receivables or cash flow arising
      from the sales of goods and services by the Borrower or its Subsidiaries
      in the ordinary course of business.

            "SUBSIDIARY" of any Person means any corporation, partnership, joint
      venture, limited liability company, trust or estate of which (or in which)
      more than 50% of (a) the issued and outstanding Capital Stock having
      ordinary voting power to elect a majority of the board of directors of
      such corporation (irrespective of whether at the time Capital Stock of any
      other class or classes of such corporation shall or might have voting
      power upon the occurrence of any contingency), (b) the interest in the
      capital or profits of such partnership, joint venture or limited liability
      company or (c) the beneficial interest in such trust or estate, is at the
      time directly or indirectly owned or controlled by such Person, by such
      Person and one or more of its other Subsidiaries or by one or more of such
      Person's other Subsidiaries.

            "TAXES" means any taxes, levies, imports, duties, assessments, or
      other governmental charges of any nature (including penalties, interest
      and other liabilities related thereto).

            "TAXING JURISDICTION" means Argentina or any other jurisdiction in
      which the Borrower is organized or is a resident for tax purposes or from
      which payment is made or deemed to be made under or with respect to this
      Agreement, the Loan, the Trust Notes or the Indenture, as the case may be,
      in each case, any political subdivision or taxing authority or agency
      thereof or therein.

            "TRUST" has the meaning specified in the recital of parties to this
      Agreement.

                                       11
<PAGE>

            "TRUST NOTES" means the 7.375% Trust Notes due 2012 to be issued by
      the Issuer in an initial principal amount of U.S.$ 150,000,000.

            "TRUST NOTES TRUSTEE" means The Bank of New York, as the trustee
      under the Indenture.

            SECTION 1.02. Computation of Time Periods; Other Definitional
Provisions. In this Agreement and the Additional Transaction Documents in the
computation of periods of time from a specified date to a later specified date,
the word "FROM" means "from and including" and the words "TO" and "UNTIL" each
mean "to but excluding". References in this Agreement or the Additional
Transaction Documents to any agreement or contract "AS AMENDED" shall mean and
be a reference to such agreement or contract as amended, amended and restated,
supplemented or otherwise modified from time to time in accordance with its
terms.

            SECTION 1.03. Accounting Terms. All accounting terms not
specifically defined herein shall be construed in accordance with Argentine
GAAP.

                                   ARTICLE II

                          AMOUNTS AND TERMS OF THE LOAN

            SECTION 2.01. The Loan. (a) The Lender agrees, on the terms and
conditions hereinafter set forth, to make a single loan (the "LOAN") to the
Borrower on the Issue Date in an amount of U.S.$ 150,000,000 (the "LOAN
AMOUNT"). The Lender shall, on the Issue Date, credit the Borrower's Account
with the Loan Amount. In the case of Section 2.01(b), the Lender shall credit
the Borrower's Account with the amount in Argentine pesos equivalent to the Loan
Amount at the exchange rate agreed upon with the Borrower in a letter dated as
of the date hereof (the "EXCHANGE RATE"). In both cases, the Loan Amount
credited in the Borrower's Account shall be the Loan Amount minus the aggregate
amount of fees, commissions and expenses due on the Issue Date pursuant to the
Additional Transaction Documents. The Borrower acknowledges and agrees that,
notwithstanding anything herein to the contrary, the principal amount of the
Loan owed as of the Issue Date shall be the Loan Amount. The commitment of the
Lender to make the Loan hereunder shall terminate on the Issue Date immediately
upon the making of the Loan under this Section 2.01. Amounts borrowed under this
Section 2.01 and repaid or prepaid may not be reborrowed.

            (b) The Loan shall be denominated in U.S. dollars. Notwithstanding
anything herein to the contrary, if there is any regulatory or legal impediment
to the Loan being disbursed in U.S. dollars as determined by the Lender, the
Lender shall, on the Issue Date, credit the account designated by the Borrower
with an amount equivalent to the amount in Argentine pesos resulting from
converting the amount of the Loan in U.S. dollars to Argentine pesos at the
Exchange Rate.

            SECTION 2.02. Notice of Borrowing. The Borrower shall give the
Lender notice of the borrowing in the form attached hereto as Exhibit A. Not
later than 11:00 A.M. New York time on the date specified for the borrowing, the
Lender shall make available the amount of the Loan to such account as the Lender
and the Borrower may agree.

                                       12
<PAGE>

            SECTION 2.03. Repayment of Principal. Subject to adjustment pursuant
to Sections 2.04 and 2.05, if any, the Borrower shall repay the principal of the
Loan in five annual equal installments commencing on March 22, 2008 and ending
on the Maturity Date (or if such date is not a Business Day, the next succeeding
Business Day following such date) (each a "PRINCIPAL PAYMENT DATE").

            SECTION 2.04. Optional Prepayment With Respect to Tax Matters. (a)
The Borrower may at its option prepay at any time prior to maturity in whole but
not in part, upon the compliance with or waiver of the conditions set forth in
Section 2.04(b) below, not less than 30 nor more than 90 days' notice, the Loan
at a prepayment price equal to 100% of the then outstanding aggregate principal
amount thereof, plus accrued and unpaid interest, if any, to the prepayment date
(subject to the right of the Lender on the relevant record date to receive
interest due on the relevant Interest Payment Date) (the "PREPAYMENT PRICE") and
Additional Amounts, if any, to the prepayment date, if as a result of: (i) any
amendment to, or change in, the laws or treaties (or any regulations or rulings
promulgated thereunder) of a Taxing Jurisdiction , or (ii) any amendment to or
change in an official position regarding the application or interpretation of
such laws, treaties, regulations or rulings, which amendment or change becomes
effective on or after the Issue Date (the "RELEVANT DATE"), the Borrower has
become or would become obligated to pay any Additional Amounts or to indemnify
for Taxes imposed on the Lender, Financial Trustee or the Noteholders, as the
case may be, pursuant to Section 2.08(d), and the Borrower determines in its
reasonable business judgment that (a) such obligation cannot be avoided by the
use of reasonable measures available to the Borrower (including, without
limitation, by changing the jurisdiction from which or through which payment is
made, to the extent such change would be a reasonable measure under the given
circumstances and, (b) with respect to Taxes indemnified pursuant to Section
2.08(d), such Taxes are material); provided that:

            (1) no such notice of prepayment may be given earlier than 90 days
      prior to the earliest date on which the Borrower would be obligated to pay
      such Additional Amounts or to indemnify for Taxes pursuant to Section
      2.08(d) were a payment in respect of the Loan due and payable, and

            (2) at the time such notice is given, such obligation to pay such
      Additional Amounts or to indemnify for Taxes pursuant to Section 2.08(d)
      remains in effect.

            (b) In the event that the Borrower elects to prepay the Loan
      pursuant to this Section 2.04, the Borrower must deliver to the Lender:

            (i) an Officers' Certificate stating that: (A) the obligation to pay
      the Additional Amounts referred to in Section 2.04(a) or to indemnify for
      Taxes pursuant to Section 2.08(d) cannot be avoided by the Borrower taking
      commercially reasonable measures available to it (which shall not include
      changing its jurisdiction of organization or other measures that would
      result in material out-of-pocket costs to the Borrower), and (B) the
      Borrower is entitled to prepay the Loan pursuant to this Agreement;

            (ii) an Opinion of Counsel in the relevant Taxing Jurisdiction to
      the effect that: (A) the Borrower has or will become obligated to pay the
      Additional Amounts referred to in Section 2.04(a) or to indemnify for
      Taxes pursuant to Section 2.08(d) as a result of a change or amendment
      described above and (B) all government approvals

                                       13
<PAGE>

      necessary for the Borrower to effect such prepayment, if any, have been
      obtained and are in full force and effect; and

            (iii) give notice to the Lender, not less than 30 nor more than 90
      days prior to the date scheduled for the prepayment, which notice shall:
      (A) be signed by a Responsible Officer of the Borrower, (B) specify the
      date the Loan is to be prepaid, (C) state the circumstances giving rise to
      the Borrower's entitlement to effect the prepayment, and (D) be
      irrevocable.

            (c) After the notice described in clause (b)(iii) of this Section
      2.04 has been delivered, the Borrower shall be required to prepay the Loan
      in accordance with such notice.

            (d) No prepayment under this Section 2.04 shall be effective unless
      and until the Lender shall have received the prepaid amount payable in
      same day funds. Unless the Borrower defaults payment of the Prepayment
      Price, on or after the prepayment date for the Loan, interest will cease
      to accrue on the Loan called for prepayment.

            (e) The amount due under the Trust Notes will be reduced accordingly
      upon a prepayment under this Section 2.04.

            SECTION 2.05. Mandatory Prepayments. (a) Mandatory Prepayment Upon
Acceleration. Subject to Section 6.01 (including any rescission permitted
thereunder), upon any acceleration of the amounts due under the Loan during the
existence of an Event of Default pursuant to Section 6.01, the Borrower shall
immediately repay the then outstanding aggregate principal amount of the Loan,
together with all accrued and unpaid interest and all other amounts then due
thereon, or with respect thereto.

            (b) Mandatory Offer to Purchase Trust Notes Upon a Change of
Control. (i) Upon the occurrence of a Change of Control, the Borrower shall make
an offer to purchase all of the Trust Notes pursuant to the offer described
below (the "CHANGE OF CONTROL OFFER") at a price (the "CHANGE OF CONTROL
PURCHASE PRICE") equal to 101% of the principal amount thereof, plus accrued and
unpaid interest, if any, to the purchase date (subject to the right of
Noteholders of record on the relevant record date to receive interest due on the
relevant interest payment date).

            (ii) Within 30 days following any Change of Control, the Borrower
      shall send, by first-class mail, with a copy to the Financial Trustee and
      the Trust Notes Trustee, to each holder of Trust Notes pursuant to the
      terms of the Trust Notes Indenture, a notice stating:

                  (1) that a Change of Control has occurred and a Change of
            Control Offer is being made pursuant to this Section 2.05(b) and
            that all Trust Notes timely tendered will be accepted for payment;

                  (2) the Change of Control Purchase Price and the purchase
            date, which shall be, subject to any contrary requirements of
            applicable law, a Business Day no earlier than 30 days nor later
            than 60 days from the date such notice is mailed;

                                       14
<PAGE>

                  (3) the circumstances and relevant facts regarding the Change
            of Control; and

                  (4) the procedures that the Noteholders must follow in order
            to tender their Trust Notes (or portions thereof) for payment, and
            the procedures that the Noteholders must follow in order to withdraw
            an election to tender Trust Notes (or portions thereof) for payment.

            (iii) The Borrower will not be required to make a Change of Control
      Offer following a Change of Control if a third party makes the Change of
      Control Offer in the manner, at the times and otherwise in compliance with
      the requirements set forth in this Agreement applicable to a Change of
      Control Offer made by the Borrower and purchases all Trust Notes validly
      tendered and not withdrawn under such Change of Control Offer.

            (iv) The Borrower will comply, to the extent applicable, with the
      requirements of Section 14(e) of the Exchange Act and any other securities
      laws or regulations in connection with the repurchase of the Trust Notes
      pursuant to a Change of Control Offer. To the extent that the provisions
      of any securities laws or regulations conflict with the provisions of this
      Section 2.05, the Borrower will comply with the applicable securities laws
      and regulations and will not be deemed to have breached its obligations
      under this Section 2.05 by virtue of such compliance.

            (v) The Change of Control Purchase Price will be deposited by the
      Borrower directly into the Payment Account.

            (vi) Any Trust Notes purchased in a Change of Control Offer may be
      delivered to the Lender in satisfaction of an equal amount of Loan amount
      Outstanding.

            SECTION 2.06. Interest. (a) Scheduled Interest. The outstanding
principal amount of the Loan will bear interest at the rate of 7.375% per year
(the "INTEREST RATE").

            (b) Default on Principal or Interest. If the Borrower fails to make
any payment of principal or interest, or any other payment on or in respect of
the Loan, on or before its due date as specified in this Agreement or as
notified to the Borrower in accordance herewith, such overdue amount shall bear
interest at the rate of one percent (1%) per annum over and above the Interest
Rate from the date such payment became due until the date of actual payment (as
well after as before judgment).

            (c) Interest on the Loan will be payable in arrears on March 22 and
September 22 of each year, commencing on September 22, 2005 (each an "INTEREST
PAYMENT DATE"); provided (i) that interest accrued pursuant to Section 2.06(b)
shall be payable on demand and (ii) subject to Section 2.04(a), upon any
repayment or prepayment of principal of the Loan, interest accrued on the
principal amount repaid or prepaid shall be payable on the date of such
repayment or prepayment.

            SECTION 2.07. Payments and Computations. (a) The Borrower shall make
each payment hereunder, irrespective of any counterclaim, set-off defense or
other right that the Borrower may have against the Lender or any other Person,
whether in connection with a

                                       15
<PAGE>

transaction contemplated in this Agreement or any unrelated transaction, two
Business Days prior to the applicable Payment Date in same day funds in U.S.
dollars or such other coin or currency of the United States that as at such
Payment Date is legal tender for the payment of public and private debts.

            (b) Notwithstanding anything herein to the contrary, if, two
Business Days prior to any Payment Date there is any regulatory or legal
impediment for the Borrower to purchase U.S. dollars in the free exchange market
(Mercado Unico y Libre de Cambios) in Argentina to repay the Loan in U.S.
dollars, the Borrower shall, on such Payment Date, credit the Lender's Account
with an amount in Argentine pesos (or any other legal tender of Argentina on
such Payment Date) resulting from converting the amount of the relevant payment
in U.S. Dollars to Argentine pesos so that the amount resulting from such
conversion is sufficient to cover any and all amounts due in U.S. Dollars on
such Payment Date and simultaneously deliver to the Lender written instructions
for the Lender to exchange the Argentine pesos deposited by the Borrower into
U.S. dollars. In this event, the Borrower shall deposit the amounts due and
notify the Lender with sufficient time to allow the Lender to effect the
exchange of Argentine pesos into U.S. dollars on the same date.

            (c) All such payments shall be made to the Lender at the Lender's
Account. Any payments (i) received by the Lender after the time provided in this
Section 2.07 or (ii) delivered pursuant to Section 2.07(b) without sufficient
time to allow the Lender to effect the exchange of Argentine pesos into U.S.
dollars on the same date, may, in the discretion of the Lender, be deemed to
have been received on the next succeeding Business Day for purposes of
calculating interest thereon.

            (d) In the event the Lender determines on the date payment is made
by the Borrower pursuant to this Section 2.07, that the funds deposited in
Argentine pesos pursuant to Section 2.07(b) above do not satisfy all amounts
becoming due on such Payment Date, the Lender shall give prompt notice by
facsimile to the Borrower (i) stating that there are insufficient amounts to
satisfy payment hereunder and/or under the Trust Notes on the immediately
succeeding Payment Date, and (ii) specifying all amounts due and payable on such
Payment Date and the funds then available for the payment thereof.

            (e) Upon the receipt of notice from the Lender pursuant to Section
2.07(d), the Borrower shall immediately deposit directly in the Payment Account
not later than 3:00 P.M. (Buenos Aires time), at least one Business Day prior to
the related Payment Date, an amount in U.S. dollars, in immediately available
funds sufficient to cover the difference between the amounts due and payable on
such Payment Date and the funds then available for the payment thereof, as
detailed in the notice sent by the Lender to the Borrower pursuant to Section
2.07(d).

            (f) If, after notifying the Borrower pursuant to Section 2.07(d),
the Borrower does not make the payment in accordance with Section 2.07(e), the
Lender shall immediately notify the Trust Notes Trustee of the non-payment by
the Borrower of the amounts due hereunder.

            (g) All computations of interest shall be made by the Lender on the
basis of a 360-day year of twelve 30-day months, in each case for the actual
number of days (including the

                                       16
<PAGE>

first day but excluding the last day) occurring in the period for which such
interest is payable. Each determination by the Lender of an interest rate or fee
hereunder shall be conclusive and binding for all purposes, absent manifest
error.

            (h) Whenever any payment hereunder shall be stated to be due on a
day other than a Business Day, such payment shall be made on the next succeeding
Business Day, and such extension of time shall in such case be included in the
computation of payment of interest.

            (i) The Borrower's obligation to make any payment hereunder shall
not be discharged until the Financial Trustee shall have made the related
payment in U.S. dollars to the Trust Notes Trustee under the Indenture.

            SECTION 2.08. Additional Amounts. (a) Except as required by law or
by the official interpretation or administration thereof, the Borrower will make
any and all payments under this Agreement free and clear of and without
withholding or deduction for any and all present or future Taxes imposed or
levied by a Taxing Jurisdiction. If the Borrower is required by law to withhold
or deduct any such Taxes (including, without limitation, Personal Assets Taxes)
from any payment made under, or with respect to, the Loan, except as provided
below in Section 2.08(b), the sum payable by the Borrower shall be increased by
additional amounts ("ADDITIONAL AMOUNTS") as may be necessary so that after the
Borrower has made all required withholdings and deductions (including
withholdings and deductions applicable to additional sums payable under this
Section 2.08), (i) the Lender receives an amount not less than the sum it would
have received had no such withholdings and deductions been made, (ii) the
Borrower shall make all such withholdings and deductions and (iii) the Borrower
shall pay the full amount withheld or deducted to the relevant Taxing
Jurisdiction in accordance with applicable law. The Borrower further agrees
that, in the event the Financial Trustee is required by law to withhold or
deduct any such Taxes (including, without limitation, Personal Assets Taxes)
from any payment made under, or with respect to, the Trust Notes, it will pay
and/or reimburse, as the case may be, the Financial Trustee, as Lender, for such
Additional Amounts as may be necessary so that the net amount received by the
Noteholders (including Additional Amounts) after such withholding or deduction
will not be less than the amount the Noteholders would have received if such
Taxes had not been required to be withheld or deducted.

            (b) Notwithstanding Section 2.08(a), the Borrower will not be
obligated to make any payment pursuant to Section 2.08(a) or (d) in connection
with any Tax that is, or is imposed due to, any of the following (and for the
avoidance of doubt, the term "Additional Amounts" shall not include any such
amounts):

            (i) any Taxes that would not have been so imposed but for the
      existence of any present or former connection between the Lender or a
      Noteholder (or between a fiduciary, settlor, beneficiary, member or
      shareholder of such Noteholder, if such Noteholder is an estate, a trust,
      a partnership or limited liability company or a corporation), as the case
      may be, and the relevant Taxing Jurisdiction, including, without
      limitation, such Noteholder (or such fiduciary, settlor, beneficiary,
      member or shareholder) being or having been a citizen or resident of the
      Taxing Jurisdiction or having been engaged in a trade or business or
      present in a Taxing Jurisdiction or having, or having had a permanent
      establishment in a Taxing Jurisdiction other than the mere

                                       17
<PAGE>

      receipt of such payment or the ownership or holding of or the execution,
      delivery or enforcement of this Agreement or the Trust Notes, as the case
      may be;

            (ii) any estate, inheritance, gift, sales, transfer, capital gains,
      excise, personal property or similar Taxes (except the Personal Assets
      Tax);

            (iii) any Taxes that would not have been so imposed but for the
      presentation of this Agreement or any note or other debt instrument issued
      under this Agreement (where presentation is required) or the Trust Notes,
      as the case may be, for payment on a date more than 30 days after the date
      on which such payment became due and payable or the date on which payment
      thereof is duly provided for, whichever is later;

            (iv) any Taxes that would not have been so imposed but for the
      failure to file a declaration of non-residence or any other claim or
      filing for exemption to which it is entitled; provided that (A) such
      declaration of non-residence or other claim or filing for exemption is
      required by the applicable law of the Taxing Jurisdiction as a
      precondition to such exemption, (B) complying with such requirements would
      not be materially more onerous (in form, in procedure or in the substance
      of information disclosed) to the Lender or to such Noteholder than
      complying with the comparable information or other reporting requirements
      imposed under U.S. tax law, regulations and administrative practice, and
      (C) at least 30 days prior to the first payment date with respect to which
      such declaration of non-residence or other claim or filing for exemption
      is required under the applicable law of the Taxing Jurisdiction, notice
      has been given by the Borrower to the Lender or the Noteholders, as
      applicable, that a declaration of non-residence or other claim or filing
      for exemption is required to be made;

            (v) any withholding or deduction imposed on a payment that is
      required to be made pursuant to the European Union Directive on the
      taxation of savings income (the "DIRECTIVE") implementing the conclusions
      of the European Council of Economic and Finance Ministers (ECOFIN) meeting
      on June 3, 2003, or any law implementing or complying with, or introduced
      in order to conform to, such Directive;

            (vi) any Taxes required to be withheld by any paying agent from any
      payment of the principal of, or interest on any Trust Note, if such Tax
      results from the presentation of any Trust Note for payment in a Member
      State of the European Union and the payment can be made without such
      withholding or deduction by the presentation of the Trust Note to another
      paying agent in a Member State of the European Union;

            (vii) any Taxes payable otherwise than by withholding or deduction
      from payments on or in respect of any Trust Note; or

            (viii) in the case of any combination of the items listed above;

nor will Additional Amounts be paid with respect to any Taxes imposed on a
payment to a Noteholder, if such Noteholder is a fiduciary, a partnership, a
limited liability company or other than the sole beneficial owner of that
payment to the extent that payment would be required by the laws of a Taxing
Jurisdiction (or any political subdivision thereof) to be included in the
income, for tax purposes, of a beneficiary or settler with respect to the
fiduciary, a member of

                                       18
<PAGE>

that partnership, an interestholder in a limited liability company or a
beneficial owner and such Taxes would not have been imposed on such payment had
such person been the sole beneficial owner of the Trust Notes.

            (c) Notwithstanding Section 2.08(b)(ii), in addition, the Borrower
agrees to pay or reimburse, as applicable, any Other Taxes from the execution or
initial delivery of this Agreement, the Indenture or the Trust Notes or any
other document or instrument in relation thereto and the enforcement thereof
following the occurrence and during the continuance of any Default, and will
indemnify the Lender or the Financial Trustee, as the case may be, for any such
Taxes paid by the Lender, the Financial Trustee or the Noteholders,
respectively; provided, however, that such Other Taxes cannot be avoided by the
reasonable use of measures available to the Lender, Financial Trustee or
Noteholders, as the case may be.

            (d) Without duplication of any amounts paid under this Agreement
with respect to Additional Amounts, Other Taxes or otherwise, the Borrower will,
upon the written request of the Lender or the Financial Trustee, indemnify and
hold harmless and reimburse the Lender or the Financial Trustee, to the extent
the Borrower has not directly made the required payments pursuant to the terms
of this covenant, for the amount of any Taxes imposed by a Taxing Jurisdiction
(other than any such Taxes for which the Lender, the Financial Trustee or the
Noteholders would not have been entitled to receive Additional Amounts pursuant
to any of the conditions described in Section 2.08(b), with the exception of
Section 2.08(b)(vii)) so imposed on, and paid by, the Lender, the Financial
Trustee or the Noteholders, as a result of any payment made by the Borrower
under or with respect to this Agreement or by the Financial Trustee under or
with respect to the Trust Notes, as the case may be, so that the net amount
received by the Lender or by the Noteholders under the Indenture, as the case
may be, after such reimbursement would not be less than the net amount the
Lender or the Noteholders, as holders of the Trust Notes, would have received if
such Taxes would not have been imposed or levied and so paid. This
indemnification shall be made within 30 days from the date the Lender or the
Financial Trustee, as the case may be, makes written demand therefor; provided
that such written request must be made no later than 30 days after the date when
such Taxes are imposed or levied.

            (e) The Borrower will (1)(i) make such withholding or deduction and
(ii) remit the full amount deducted or withheld to the relevant Taxing
Jurisdiction in accordance with applicable law or (2) reimburse the Financial
Trustee, acting on behalf of the Trust. The Borrower will use all reasonable
efforts to obtain certified copies of tax receipts evidencing the payment of any
Taxes so deducted or withheld from each Taxing Jurisdiction imposing such Taxes
and will furnish such certified copies to the Financial Trustee, in its capacity
as Lender, within 30 days after the date the payment of any Taxes so deducted or
so withheld is due pursuant to applicable law or, if such tax receipts are not
reasonably available to the Borrower, furnish such other documentation that
provides reasonable evidence of such payment by the Borrower pursuant to this
Section 2.08. At least 30 days prior to each date on which any payment under or
with respect to this Agreement is due and payable (unless such obligation to pay
Additional Amounts arises shortly before or after the 30th day prior to such
date, in which case it shall be promptly thereafter), if the Borrower is
obligated to pay Additional Amounts with respect to such payment, the Borrower
will deliver to the Lender an Officers' Certificate stating that Additional
Amounts will be payable, the amounts so payable and setting forth such other
information necessary to pay such Additional Amounts to the Lender on the
payment date. Each

                                       19
<PAGE>

such Officers' Certificate shall be relied upon until receipt of a further
Officers' Certificate addressing such matters.

            (f) The Borrower undertakes that, if European Union Council
Directive 2003/48/EC or any other Directive implementing the conclusions of the
ECOFIN Council meeting of 26 and 27 November 2000 or any law implementing or
complying with, or introduced in order to conform to, such Directive is brought
into force, it will ensure that it maintains a paying agent in a European Union
Member State that will not be obliged to withhold or deduct Tax pursuant to the
Directive.

            (g) All references to principal, premium, interest, or other amounts
payable under this Agreement shall be deemed to include any Additional Amounts
(or other additional payments) payable by the Borrower under this Section 2.08
or otherwise with respect to this Agreement. The foregoing obligations in this
Section 2.08 shall survive any termination, defeasance or discharge of this
Agreement or the Trust Notes and shall apply equally to any Taxing Jurisdiction
with respect to any successor Person to the Borrower or to the Financial
Trustee, as the case may be.

            (i) In the event the Borrower pays any Personal Assets Tax in
respect of the Loan or the Trust Notes, the Borrower hereby waives any right it
may have under Argentine law to seek reimbursement (whether by way of
foreclosing the Loan, by deduction from payments of principal of or interest on
the Loan or otherwise) from the Lender or the Financial Trustee of any such
amounts paid.

            SECTION 2.09. Evidence of Indebtedness. The Lender shall maintain in
accordance with its usual practice an account or accounts evidencing the
Indebtedness of the Borrower to the Lender resulting from the Loan owing to the
Lender from time to time, including the amounts of principal and interest
payable and paid to the Lender from time to time hereunder. The accounts
maintained pursuant to this Section 2.09 shall be prima facie evidence of the
existence and amounts of the obligations recorded therein; provided that the
failure of the Lender to maintain such accounts or any error therein shall not
in any manner affect the obligation of the Borrower to repay the Loan in
accordance with the terms of this Agreement. The Borrower shall, at the date the
Loan is made, execute and deliver to the Lender, a promissory note in the form
attached hereto as Exhibit B-1, together with a reconocimiento de deuda, in the
form attached hereto as Exhibit B-2 or in forms otherwise acceptable to the
Lender, payable to the order of the Lender in a principal amount equal to the
amount owed to the Lender. The Lender agrees that, notwithstanding the
simultaneous existence of the Trust Notes and the Loan, it is not entitled to,
and shall not seek to, recover in the aggregate any amount in excess of the
unpaid amounts owing to it under this Agreement. The Lender agrees that if at
any time it should recover any amount in excess of the unpaid amount owing to it
under this Agreement, it shall promptly return such excess amount to the
Borrower. The Lender further agrees that, notwithstanding the execution of the
promissory note and the reconocimiento de deuda by the Borrower, the Lender
shall not maintain at any time simultaneous actions under both instruments.

                                       20
<PAGE>

                                  ARTICLE III

                              CONDITIONS PRECEDENT

            SECTION 3.01. Conditions Precedent. The obligation of the Lender to
make the Loan hereunder shall be subject to the following conditions precedent,
each of which shall have been satisfied or waived by the Lender:

            (a) As of the Issue Date, this Agreement shall have been duly
executed by each of the parties hereto.

            (b) The promissory note and the reconocimiento de deuda, in
accordance with Section 2.09 hereof, shall have been executed by a duly
authorized Officer and duly notarized by an Argentine public notary and
delivered to the Lender.

            (c) Anything in this Agreement to the contrary notwithstanding, the
Lender shall not have any obligation to make the Loan hereunder except to the
extent the Lender has actually received, or shall be simultaneously receiving,
at the place and in the manner provided therein, the proceeds from the sale of
the Trust Notes pursuant to the assignment transaction provided for in the
Assignment Agreement.

                                   ARTICLE IV

                         REPRESENTATIONS AND WARRANTIES

            SECTION 4.01. Representations and Warranties. The Borrower
represents and warrants to the Lender as of the Issue Date as follows:

            (a) The Borrower is duly incorporated and is validly existing as a
      sociedad anonima in good standing under the laws of the Republic of
      Argentina, and each of its Subsidiaries is duly organized and is validly
      existing in good standing (to the extent applicable) under the laws of the
      jurisdiction in which it is organized. The Borrower has the full corporate
      power and authority to own or lease, as the case may be, and to operate
      its properties and conduct its business as described in the Offering
      Memorandum and to enter into and perform its obligations, as applicable,
      under the Additional Transaction Documents to which it is a party, and (to
      the extent applicable) is duly qualified to do business as a foreign
      corporation under the laws of each jurisdiction which requires such
      qualification except where the failure to be so qualified could not
      reasonably be expected to have a Material Adverse Effect.

            (b) All of the outstanding shares of capital stock of the Borrower
      have been duly and validly authorized and issued and are fully paid and
      nonassessable and, except as disclosed in the Offering Memorandum or as
      could not reasonably be expected to have a Material Adverse Effect, all of
      the outstanding shares of capital stock, of the Borrower are free and
      clear of any security interest or any other security interests, claims,
      liens or encumbrances.

                                       21
<PAGE>

            (c) All of the outstanding shares of capital stock, if any, of each
      of the Borrower's Subsidiaries have been duly and validly authorized and
      issued and are fully paid and nonassessable and, except as disclosed in
      the Offering Memorandum, all outstanding shares of capital stock of the
      Subsidiaries are owned by the Borrower either directly or through
      majority-owned Subsidiaries, free and clear of any perfected security
      interest or any other security interests, claims, liens or encumbrances.

            (d) The capitalization of the Borrower is as set forth in the
      Offering Memorandum.

            (e) This Agreement has been duly authorized, executed and delivered
      by the Borrower, and, assuming due authorization, execution and delivery
      thereof by the Lender, constitutes a legal, valid and binding agreement of
      the Borrower, enforceable against the Borrower in accordance with its
      terms, subject to applicable bankruptcy, reorganization, insolvency,
      moratorium or other similar laws affecting creditors' rights generally
      from time to time in effect and to general principles of equity.

            (f) The Expense Agreement has been duly authorized, executed and
      delivered by the Borrower, and, assuming due authorization, execution and
      delivery thereof by the Financial Trustee, constitutes a legal, valid and
      binding agreement of the Borrower, enforceable against the Borrower in
      accordance with its terms, subject to applicable bankruptcy,
      reorganization, insolvency, moratorium or other similar laws affecting
      creditors' rights generally from time to time in effect and to general
      principles of equity.

            (g) No consent, approval, authorization, filing with or order of any
      court or governmental agency or other regulatory authority or body having
      jurisdiction over any of the Borrower or any of its properties or assets
      in Argentina or elsewhere ("GOVERNMENT AUTHORITIES") is required for the
      execution, delivery or performance by the Borrower of any of its
      obligations under any of this Agreement or the Additional Transaction
      Documents to which it is a party in the manner contemplated in the
      Offering Memorandum, including, without limitation, making any of the
      applicable payments required to be made after the date hereof under or in
      respect of this Agreement or such Additional Transaction Documents.

            (h) The Borrower is not in violation of its organizational
      documents, and none of the execution and delivery of any of the Additional
      Transaction Documents, the consummation of any of the transactions
      described or contemplated therein, or the fulfillment of the terms thereof
      will conflict with, or give rise to any right to accelerate the maturity
      or require the prepayment, repurchase or redemption of any indebtedness
      under, or result in a breach or violation or imposition of any Lien upon
      any property or assets of the Borrower pursuant to, (i) the charter,
      by-laws or comparable organizational documents of the Borrower, (ii) the
      terms of any material indenture, contract, lease, mortgage, deed of trust,
      note agreement, loan agreement or other material agreement, obligation,
      condition, covenant or instrument to which the Borrower is a party or
      bound or to which any of its property or assets is subject or (iii) any
      statute, law, rule, regulation, judgment, order or decree applicable to
      the Borrower.

                                       22
<PAGE>

            (i) The historical financial statements of the Borrower included in
      the Offering Memorandum, together with the related notes, have been
      prepared in accordance with the accounting policies and practices
      contained in Argentine GAAP applied on a consistent basis throughout the
      periods involved (except as otherwise noted therein) and present fairly in
      all material respects the financial condition, results of operations and
      cash flows of the Borrower as of the dates and for the periods indicated;
      the summary and selected financial data set forth under the captions
      "Summary Financial and Other Information," "Selected Financial and Other
      Information" and "Management's Discussion and Analysis of Financial
      Condition and Results of Operations" in the Offering Memorandum fairly
      present in all material respects, on the basis stated in the Offering
      Memorandum, the information included therein; and, except as set forth or
      contemplated in the Offering Memorandum, since the later of September 30,
      2004 and the respective dates as of which information is given in the
      Offering Memorandum, there has been no Material Adverse Change.

            (j) Except as set forth or contemplated in the Offering Memorandum,
      since the respective dates as of which information is given in the
      Offering Memorandum, the Borrower has not entered into any transaction or
      agreement (whether or not in the ordinary course of business) which could
      reasonably be expected to have a Material Adverse Effect.

            (k) Except as set forth or contemplated in the Offering Memorandum
      or as could not reasonably be expected, in the aggregate, to have a
      Material Adverse Effect, no action, suit or proceeding by or before any
      Government Authority involving the Borrower or any of its Subsidiaries or
      their property or assets is pending or, to the best knowledge of the
      Borrower, threatened, involving or in any way relating to any of the
      Additional Transaction Documents or the transactions contemplated therein.
      Except as set forth or contemplated in the Offering Memorandum, neither of
      the Borrower nor any of its Subsidiaries is in default with respect to any
      applicable statute, rule, writ, injunction, decree, order or regulation of
      any Government Authority having jurisdiction over such Person which could
      reasonably be expected to have a Material Adverse Effect.

            (l) The Borrower and its Subsidiaries have good and marketable title
      to all of their properties and assets, owns or leases all such properties
      and assets as are both described in the Offering Memorandum and are
      necessary to the conduct of their operations as presently conducted and
      all such properties and assets are free and clear of any Liens except, in
      the case of any of the foregoing, such as could not reasonably be expected
      to have a Material Adverse Effect. All leases and subleases material to
      the business of the Borrower under which the Borrower holds properties, as
      described in the Offering Memorandum, are in full force and effect; and
      the Borrower has not had any notice that any material claim of any sort
      has been asserted by anyone adverse to the Borrower's rights under any
      leases or subleases mentioned above, or affecting or questioning the
      rights thereof to the continued possession of the leased or subleased
      premises under any such lease or sublease.

            (m) Price Waterhouse & Co., who certified the financial statements
      of the Borrower and delivered their report with respect to the Borrower's
      audited consolidated

                                       23
<PAGE>

      financial statements as of June 30, 2003 and 2004 and for each of the
      three years ended June 30, 2002, 2003 and 2004 and the unaudited interim
      consolidated financial statements as of September 30, 2003 and 2004 and
      for the three months ended September 30, 2003 and 2004 (together, the
      "FINANCIAL STATEMENTS") included in the Offering Memorandum, are
      independent public accountants within the meaning of Rule 101 of the Code
      of Professional Conduct of the American Institute of Certified Public
      Accountants and are certified public accountants with respect to the
      Borrower under the standards established by the local authorities in
      Argentina.

            (n) No labor problem or dispute with the employees of the Borrower
      or any of its Subsidiaries exists or, to the knowledge of the Borrower, is
      threatened or imminent, in each case to the extent that such problem or
      dispute could reasonably be expected to have a Material Adverse Effect.

            (o) The Borrower and its Subsidiaries have filed or caused to be
      filed all material tax returns required to be filed, and have paid all
      material taxes shown to be due and payable on said returns or on any
      material assessments made against such Persons or any of their respective
      properties and all other material taxes, assessments, fees or other
      charges imposed on such Persons or any of their respective properties by,
      any Government Authority (other than those the amount or validity of which
      is currently being contested in good faith by appropriate proceedings and
      with respect to which reserves in conformity with generally accepted
      accounting principles have been provided on the books of such person); and
      no tax liens or liens with respect to any such assessments, fees or other
      charges have been filed and no claims are being asserted with respect to
      any such taxes, assessments, fees or other charges.

            (p) The Borrower and its Subsidiaries maintain insurance with
      financially sound and reputable insurance companies against such losses
      and risks and in such amounts as is customarily maintained by companies
      engaged in the same or similar businesses operating in the same or similar
      locations; and neither of the Borrower nor any of its Subsidiaries thereof
      has any reason to believe that it will not be able to renew its existing
      insurance coverage as and when such coverage expires or to obtain similar
      coverage from similar insurers as may be necessary to continue its
      business at a cost that would not have a Material Adverse Effect.

            (q) No Subsidiary of the Borrower is currently contractually
      prohibited, directly or indirectly, from paying any dividends to the
      Borrower, from making any other distribution on such Subsidiary's capital
      stock, from repaying to the Borrower any loans or advances to such
      Subsidiary from the Borrower or from transferring any of such Subsidiary's
      property or assets to the Borrower or any other Subsidiary of the
      Borrower, except in connection with the consummation of the transactions
      contemplated in the Offering Memorandum.

            (r) The Borrower and its Subsidiaries (i) have made all declarations
      and filings with and possess all licenses, certificates, permits,
      concessions and other authorizations issued by Government Authorities and
      (ii) neither the Borrower nor any of its Subsidiaries has received notice
      or has knowledge of any limitation, restriction,

                                       24
<PAGE>

      requirement, without limitation, any revocation or modification (actual,
      pending or threatened) of any such license, certificate, permit,
      concessions or authorization or has any reason to believe that any such
      license, certificate, permit, concessions or authorization will not be
      renewed, except, in respect of the matters contemplated in clauses (i) and
      (ii), to the extent that failure to do so could not reasonably be expected
      to have a Material Adverse Effect.

            (s) The Borrower and its Subsidiaries maintain a system of internal
      accounting controls sufficient to provide reasonable assurance that (i)
      transactions are executed in accordance with management's general or
      specific authorizations, (ii) transactions are recorded as necessary to
      permit preparation of financial statements in accordance with Argentine
      GAAP and to maintain asset accountability, (iii) access to assets is
      permitted only in accordance with management's general or specific
      authorization and (iv) the recorded accountability for assets is compared
      with the existing assets at reasonable intervals and appropriate action is
      taken with respect to any differences.

            (t) Except as set forth in the Offering Memorandum, the Borrower and
      its Subsidiaries (i) are in compliance with any and all applicable
      foreign, federal, state and local Environmental Laws, (ii) have received
      and are in compliance with all permits, licenses or other approvals
      required of them under the applicable Environmental Laws to conduct their
      respective businesses and (iii) have not received written notice of any
      actual or potential liability for the investigation or remediation of any
      disposal or release of hazardous or toxic substances or wastes, pollutants
      or contaminants, except for any aggregate noncompliance or actual or
      potential liabilities in respect of the matters contemplated in clauses
      (i), (ii) and (iii) above reasonably could not be expected to have a
      Material Adverse Effect.

            (u) In the ordinary course of its business, the Borrower reviews as
      necessary the effect of Environmental Laws on its business, operations and
      properties and its respective Subsidiaries, in the course of which it
      identifies and evaluates associated costs and liabilities (including,
      without limitation, any capital or operating expenditures required for
      clean-up, closure of properties or compliance with Environmental Laws, or
      any permit, license or approval, any related constraints on operating
      activities and any potential liabilities to third parties). On the basis
      of such review, the Borrower has reasonably concluded that such associated
      costs and liabilities could not, singly or in the aggregate, have a
      Material Adverse Effect.

            (v) The Borrower and its Subsidiaries own, possess, license or have
      other rights to use, on reasonable terms, all patents, patent
      applications, trade and service marks, trade and service mark
      registrations, trade names, copyrights, licenses, inventions, trade
      secrets, technology, know-how and other intellectual property necessary
      for the conduct of the business of the Borrower as now conducted or as
      described in the Offering Memorandum to be conducted by them and neither
      the Borrower nor any of its Subsidiaries has received any written notice
      of infringement or of conflict with asserted rights of others with respect
      to any of the foregoing which, singly or in the aggregate, if

                                       25
<PAGE>

      the subject of an unfavorable decision, ruling or funding, could
      reasonably be expected to result in any Material Adverse Effect.

            (w) To ensure the legality, validity, enforceability or
      admissibility into evidence of this Agreement, the Additional Transaction
      Documents or any other documents executed thereunder, it is not necessary
      that any such document be filed or recorded with any court or other
      authority in Argentina (other than such authorizations or filings that
      have already been obtained or made, as applicable), or that any stamp or
      similar tax be paid in Argentina on or in respect of any such document.

            (x) The Borrower is subject to civil and commercial law in respect
      of its obligations hereunder and under the Additional Transaction
      Documents and neither the Borrower, nor is any of its properties, assets
      or revenues is subject to any right of immunity under Argentine, United
      States federal law or New York law from (i) any legal action, suit or
      proceeding, (ii) the giving of any relief in any such legal action, suit
      or proceeding, (iii) set-off or counterclaim, (iv) the jurisdiction of any
      Argentine, State of New York or United States federal court, (v) service
      of process, attachment upon or prior to judgment, or attachment in aid of
      execution of judgment, or (vi) execution of a judgment, or other legal
      process or proceeding for the giving of any relief or for the enforcement
      of a judgment, in any such court with respect to its obligations,
      liabilities or any other matter under or arising out of or in connection
      herewith.

            (y) Both presently and immediately after giving effect to the
      transactions contemplated hereunder, the Borrower (i) is and will be able
      to pay any of its debts as they become due and (ii) is not insolvent as
      defined under applicable Argentine bankruptcy, insolvency or similar law.

            (z) There are no Argentine taxes on or by virtue of the execution or
      delivery of any of the Additional Transaction Documents by any of the
      parties thereto or any other document to be furnished hereunder or
      thereunder or the consummation of any of the transactions described
      therein. Except as described in the Offering Memorandum (or as may relate
      to payments due by the Borrower under any of the Additional Transaction
      Documents to which it is a party), payments to be made by the Borrower or
      any other party to any of the Additional Transaction Documents pursuant to
      such documents will not be subject to taxes (not including taxes imposed
      on net income) of the United States, Argentina, or any other jurisdiction
      from which payments are made by the Borrower or any other party to any of
      the Additional Transaction Documents. There are no stamp or other issuance
      or transfer taxes or duties or other similar fees or charges imposed by
      the United States or Argentina that are required to be paid in connection
      with the execution and delivery of any of the Additional Transaction
      Documents or the consummation of any of the other transactions described
      therein.

                                       26
<PAGE>

                                   ARTICLE V

                            COVENANTS OF THE BORROWER

            SECTION 5.01. Affirmative Covenants. (a) Provision of Financial
Statements. The Borrower shall furnish or cause to be furnished to the Lender
the following information:

            (i) an annual compliance statement as to the performance of the
      Borrower of its obligations under this Agreement and as to any Default in
      such performance;

            (ii) annual reports of the Borrower in Spanish, and a free
      translation to English thereof, which shall include audited fiscal
      year-end consolidated financial statements prepared in conformity with
      Argentine GAAP and substantially in the form prescribed by Argentine
      regulatory authorities (whether or not the Borrower is a public reporting
      company at the time), together with a report of Price Waterhouse & Co. or
      another independent public accounting firm of recognized international
      standing, not later than 120 days after the end of the most recently
      completed fiscal year;

            (iii) quarterly reports of the Borrower in Spanish, and a free
      translation to English thereof, which shall include unaudited interim
      consolidated financial statements prepared in conformity with Argentine
      GAAP and substantially in the form prescribed by Argentine regulatory
      authorities (whether or not the Borrower is a public reporting company at
      the time), together with a limited review report prepared by Price
      Waterhouse & Co. or another independent accounting firm of recognized
      international standing, not later than 70 days after the end of the most
      recently completed fiscal quarter (unless the end of such fiscal quarter
      is also the end of a fiscal year);

            (iv) notices in English of all shareholders' meetings and other
      material public reports and public communications, if any, that are
      distributed by the Borrower to its shareholders generally or required to
      be filed by the Borrower with any public stock exchange or securities
      regulatory authority in Argentina or elsewhere.

            (v) The Lender shall, not later than two (2) Business Days upon
receipt of any such information set forth in clauses (i) to (iv) above, send to
the Buenos Aires Stock Exchange any such documentation so that it may be
available to the Noteholders.

            (b) Performance of Obligations. The Borrower shall duly and
punctually pay all amounts owed by it and comply with all its other obligations
under the applicable terms of this Agreement and the Additional Transaction
Documents in accordance with the terms hereof and thereof.

            (c) Maintenance of Corporate Existence. The Borrower shall, and
shall cause each of its Subsidiaries to, maintain in effect its corporate
existence and all registrations necessary therefor and take all reasonable
actions to maintain all rights, privileges, titles to property, franchises,
concessions and the like necessary or desirable in the normal conduct of its
business, activities or operations; provided, however, that this Section 5.01(c)
shall not require the Borrower or any of its Subsidiaries to maintain any such
right, privilege, title to property or franchise or the like or require the
Borrower to preserve the corporate existence of any

                                       27
<PAGE>

Subsidiary, if (i) such action is permitted under Section 5.02(e) or (ii) the
failure to do so does not, and could not reasonably be expected to, have a
Material Adverse Effect or have a material adverse effect on the rights of the
Lender hereunder or under any Additional Transaction Document to which the
Borrower is a party; provided further that any actions taken in connection with
the compliance by the Borrower, or any of its Subsidiaries, with any resolution
adopted by Argentina's antitrust authorities in connection with the approval of
the alliance between AmBev and the Borrower that would result in the sale,
conveyance, transfer or disposition of any rights, privileges, titles to
property, franchises, concessions and the like that would affect the corporate
existence of any entity, shall not contravene the terms of this Section 5.01(c).

            (d) Maintenance of Properties. The Borrower shall, and shall cause
each of its Subsidiaries to, keep all its property used or useful in the conduct
of its business in good working order and condition, ordinary wear and tear
excepted; provided, however, that this Section 5.01(d) shall not require the
Borrower or any of its Subsidiaries to maintain any such right, privilege, title
to property or franchise if the failure to do so does not, and could not
reasonably be expected, to have a Material Adverse Effect or have a material
adverse effect on the rights of the Lender or under any Additional Transaction
Document to which the Borrower is a party; provided further that any actions
taken in connection with the compliance by the Borrower, or any of its
Subsidiaries, of any resolution adopted by Argentina's antitrust authorities in
connection with the approval of the alliance between AmBev and the Borrower and
that would result in the sale, conveyance, transfer or disposition of any such
property, shall not contravene the terms of this Section 5.01(d).

            (e) Compliance with Laws. The Borrower shall comply, and shall cause
each of its Subsidiaries to comply, with all applicable laws, rules,
regulations, orders and directives of any Government Authority having
jurisdiction over the Borrower, the Borrower's businesses or any of the
transactions contemplated herein, except where the failure so to comply could
not reasonably be expected to have a Material Adverse Effect or have a material
adverse effect on the rights of the Lender hereunder.

            (f) Maintenance of Government Approvals. The Borrower shall, and
shall cause each of its Subsidiaries to, duly obtain and maintain in full force
and effect all governmental approvals, consents or licenses of any Government
Authority under the laws of Argentina or any other jurisdiction having
jurisdiction over the Borrower necessary in all cases for the Borrower or its
Subsidiaries to perform its obligations under the Additional Transaction
Documents to which it is a party (including, without limitation, any
authorization required to obtain and transfer U.S. dollars or any other currency
which at that time is legal tender in the United States, out of Argentina in
connection with this Agreement) or for the validity or enforceability thereof,
except where the failure to do so could not reasonably be expected to have a
Material Adverse Effect or have a material adverse effect on the rights of the
Lender hereunder.

            (g) Payments of Taxes and Other Claims. The Borrower shall, and
shall cause each of its Subsidiaries to, pay or discharge or cause to be paid or
discharged, before the same shall become delinquent, (i) all Taxes levied or
imposed upon the Borrower or such Subsidiary, as the case may be, and (ii) all
lawful claims for labor, materials and supplies which, if unpaid,

                                       28
<PAGE>

might by law become a Lien upon the property of the Borrower or such Subsidiary,
as the case may be; provided, however, that neither the Borrower nor any
Subsidiary shall be required to pay or discharge or cause to be paid or
discharged any such Tax or claim (x) the amount, applicability or validity of
which is being contested in good faith and, if appropriate, by appropriate legal
proceedings, and for which adequate reserves, if applicable, have been
established on the financial statements of the Borrower or such Subsidiary, as
applicable, or (y) where the failure to do so does not and could not reasonably
be expected to have a Material Adverse Effect or a material adverse effect on
the rights of the Lender under this Agreement or any Additional Transaction
Document.

            (h) Maintenance of Insurance. The Borrower shall, and shall cause
each of its Subsidiaries to, maintain insurance with financially sound and
reputable insurance companies in such amounts and covering such risks as is
customarily maintained by companies engaged in the same or similar businesses
operating in the same or similar locations.

            (i) Maintenance of Books and Records. The Borrower shall, and shall
cause each of its Subsidiaries to, maintain books, accounts and records in
accordance with Argentine GAAP, unless (i) it is otherwise doing so under U.S.
generally accepted accounting principles in accordance with its status as a
foreign private issuer under U.S. law or otherwise or (ii) in the case of such
Subsidiaries, under generally accepted accounting principles in the jurisdiction
where each such Subsidiary is organized.

            (j) Maintenance of Office or Agency. The Borrower shall maintain an
office or agency in the Borough of Manhattan, The City of New York, where
notices to and demands upon the Borrower in respect of this Agreement may be
served.

            (k) Ranking. The Borrower shall ensure that the Loan shall
constitute general unsecured and unsubordinated Indebtedness of the Borrower and
shall rank pari passu with all other present and future unsecured and
unsubordinated Indebtedness of the Borrower (other than obligations preferred by
statute, by operation of law or pursuant to arrangements among holders of such
Indebtedness Outstanding on the Issue Date) that are not, by their terms,
expressly subordinated in right of payment to the obligations of the Borrower
under this Agreement.

            (l) Notice of Certain Events. The Borrower shall give notice to the
Lender, as soon as is practicable and in any event within ten days after a
Responsible Officer becomes aware or should reasonably become aware, of the
occurrence of any Default, accompanied by a certificate of a Responsible Officer
setting forth the details of such Default and stating what action that the
Borrower has taken or proposes to take with respect thereto. Any notice given by
the Borrower to the Lender pursuant to this paragraph (l) shall, not later than
two (2) Business Days after receipt thereof, be sent by the Lender to the Buenos
Aires Stock Exchange so that it may be available to the Noteholders.

            (m) Further Actions. The Borrower shall, at its own cost and
expense, and shall cause its Subsidiaries to, at their own cost and expense,
satisfy any condition or take any action (including the obtaining or effecting
of any necessary consent, approval, authorization, exemption, filing, license,
order, recording or registration) at any time required, as may be necessary or
as the Lender may reasonably request, in accordance with applicable laws and/or

                                       29
<PAGE>

regulations, to be taken, fulfilled or done in order (i) to enable the Borrower
to lawfully enter into, exercise its rights and perform and comply with its
obligations under this Agreement and each of the Additional Transaction
Documents to which it is a party, (ii) to ensure that the Borrower's obligations
under this Agreement and each of the Additional Transaction Documents to which
it is a party are legally binding and enforceable, (iii) to make this Agreement
and each of the Additional Transaction Documents to which it is a party
admissible in evidence in the courts of the State of New York or Argentina, (iv)
to enable the Lender to exercise and enforce its rights under and carry out the
terms, provisions and purposes of this Agreement and each of the Additional
Transaction Documents to which it is a party, (v) to take any and all action
necessary to preserve the enforceability of, and maintain the Lender's rights
under this Agreement and each of the Additional Transaction Documents to which
it is a party and (vi) to assist the Lender in its performance of its
obligations under this Agreement and each of the Additional Transaction
Documents to which it is a party. The Borrower acknowledges that the Financial
Trustee will pledge all of its right, title and interest in the Credit Agreement
and the Loan, including any promissory note or reconocimiento de deuda delivered
by the Borrower thereunder to the Trust Notes Trustee for the benefit of the
Noteholders and the Borrower hereby agrees to take all actions reasonably
requested by the Lender to perfect such Lien.

            SECTION 5.02. Negative Covenants. (a) Liens. The Borrower shall not,
nor shall it cause or permit any of its Subsidiaries, to Incur any Indebtedness
secured by a Lien upon any Specified Property now owned or hereafter acquired,
without making effective provision for all amounts due under the this Agreement
to be directly secured equally and ratably pursuant to a perfected Lien with
(or, if the obligation or liability to be secured by such Lien is subordinated
in right of payment to the Loan, prior to) the obligation or liability secured
by such Lien, except for Permitted Liens.

            (b) Indebtedness. The Borrower shall not, nor shall it permit any of
its Subsidiaries to, directly or indirectly, Incur any Indebtedness unless, on
the date of such Incurrence and after giving effect thereto, (A) no Default
shall have occurred and be continuing and (b) the Indebtedness to Adjusted
EBITDA Ratio at the date of such Incurrence, calculated on a pro forma basis to
take into account the Incurrence of the Indebtedness proposed to be Incurred, is
no more than 3.0 to 1.0.

            (c) Consolidations, Merger, Sale or Conveyance. The Borrower shall
not, nor shall it permit any of its Subsidiaries, in one or a series of
transactions, to consolidate or amalgamate with or merge with or into or sell,
convey, lease or transfer all or substantially all of its respective properties
or assets to any Person (other than a Subsidiary of the Borrower) permit any
Person (other than a Subsidiary of the Borrower) to merge with or into it
unless:

            (i) if the Borrower is a party to such transaction, either the
      Borrower is the continuing entity or the Person formed by such
      consolidation or into which the Borrower is merged or that acquired or
      leased such property or assets of the Borrower will be a company organized
      and validly existing under the laws of Argentina or the United States;

            (ii) the successor company (jointly and severally with the Borrower
      unless the Borrower shall have ceased to exist as part of such merger,
      consolidation or amalgamation) agrees to indemnify the Lender against any
      Tax thereafter imposed on the

                                       30
<PAGE>

      Lender solely as a consequence of such consolidation, merger, conveyance,
      transfer or lease with respect to the payment of principal of, or interest
      on, the Loan;

            (iii) immediately after giving effect to the transaction, no Default
      shall have occurred and be continuing;

            (iv) the Borrower shall have delivered to the Lender an Officers'
      Certificate and an Opinion of Counsel, each stating that the transaction
      and the acknowledgment or amendment agreement, if applicable, comply with
      the terms of this Agreement and that all conditions precedent provided for
      in this Agreement and relating to such transaction have been complied with
      (or waived in accordance with Section 7.01);

            (v) immediately after giving effect to the transaction or series of
      transactions on a pro forma basis, the Borrower or its Subsidiary, as
      applicable, or the surviving entity, as the case may be, shall be able to
      Incur at least U.S.$1.00 of additional Indebtedness without violating
      Section 5.02(b).

            (vi) Notwithstanding anything to the contrary in the foregoing, so
      long as no Default shall have occurred and be continuing at the time of
      such proposed transaction or would result therefrom:

                  (A) the Borrower may merge or consolidate with or into, or
            convey, transfer, lease or otherwise dispose of assets to a
            Subsidiary of the Borrower in cases when the Borrower is the
            surviving entity in such transaction and such transaction would not
            have a Material Adverse Effect on the Borrower and its Subsidiaries
            taken as a whole, it being understood that if the Borrower is not
            the surviving entity, the Borrower shall be required to comply with
            the requirements set forth in the previous paragraph; or

                  (B) any Subsidiary of the Borrower may merge or consolidate
            with or into, or convey, transfer, lease or otherwise dispose of
            assets to, any Person (other than the Borrower or any of its
            Subsidiaries or Affiliates) in cases when such transaction would not
            have a Material Adverse Effect on the Borrower and its Subsidiaries
            taken as a whole; or

                  (C) any Subsidiary of the Borrower may merge or consolidate
            with or into, or convey, transfer, lease or otherwise dispose of
            assets to, any other direct or indirect Subsidiary of the Borrower;
            or

                  (D) any Subsidiary of the Borrower may liquidate or dissolve
            if the Borrower determines in good faith that such liquidation or
            dissolution is in the best interests of the Borrower, and would not
            result in a Material Adverse Effect on the Borrower and its
            Subsidiaries taken as a whole and if such liquidation or dissolution
            is part of a corporate reorganization of the Borrower.

            (vii) Notwithstanding the foregoing, neither this Section nor any
      other provision in this Agreement shall restrict or prohibit any
      transactions relating to the compliance by the Borrower, its Affiliates or
      any of its Subsidiaries of any resolution

                                       31
<PAGE>

      adopted by Argentina's antitrust authorities in connection with the
      approval of the alliance between AmBev and the Borrower as described in
      the Offering Memorandum.

            (d) Sale and Lease-Back Transactions. The Borrower shall not, and
shall not permit any of its Subsidiaries to, enter into any Sale and Lease-Back
Transaction with respect to any Specified Property (other than (i) transactions
providing for a lease term, including any renewal, of not more than three years
and (ii) transactions between the Borrower and any of its Subsidiaries or
between the Borrower's Subsidiaries), unless the Borrower or that Subsidiary
shall apply or cause to be applied, in the case of a sale or transfer for cash,
an amount equal to the net proceeds thereof and, in the case of a sale or
transfer otherwise than for cash, an amount equal to the Fair Market Value of
the Specified Property so leased, to the retirement, within 12 months after the
effective date of the Sale and Lease-Back Transaction, of Indebtedness of the
Borrower ranking at least pari passu with the Loan and owing to a person other
than the Borrower or any of its Subsidiaries or to the construction or
improvement of real property or personal property used by the Borrower or any of
its Subsidiaries in the ordinary course of business or Indebtedness of a
Subsidiary of the Borrower.

            (e) Transactions with Affiliates. (i) The Borrower shall not, nor
shall it permit any of its Subsidiaries to, enter into or carry out (or agree to
enter into or carry out) any transaction, including, without limitation, any
purchase, sale, lease or exchange of property or the rendering of any service,
with any Affiliate (an "AFFILIATE TRANSACTION") unless such transaction:

            (A) is otherwise not prohibited under this Agreement; and

            (B) is upon terms no less favorable to the Borrower or such
      Subsidiary than would be obtained in a comparable arm's length transaction
      with a Person or entity that is not an Affiliate.

            (ii) The foregoing restrictions will not limit and shall not apply
to: (A) any transaction solely between or among the Borrower or any Subsidiary
thereof so long as the consummation of any such transaction could not reasonably
be expected to have a Material Adverse Effect or a material adverse effect on
the rights of the Lender; and (B) any transaction arising under any agreement,
contract, instrument or arrangement in existence on the Issue Date and any
modifications, extension or renewals thereto that are not materially less
favorable, taken as a whole, to the Lender in any material respect than such
agreement, contract or instrument or arrangement as in effect on the Issue Date.

            (f) Use of Proceeds. The Borrower shall use the net proceeds from
the Loan solely to refinance its Indebtedness as described in the "Use of
Proceeds" and "Capitalization" sections in the Offering Memorandum.

                                       32
<PAGE>

                                   ARTICLE VI

                                EVENTS OF DEFAULT

            SECTION 6.01. Events of Default. Each of the following constitutes
an Event of Default:

            (a) (i) the Borrower shall fail to pay all or any portion of the
      principal amount of, or premium, if any, on the Loan when the same becomes
      due and payable, or the Financial Trustee shall fail to pay any or any
      portion of the principal amount of, or premium, if any, on the Trust Notes
      when the same becomes due and payable, in each case whether at a scheduled
      Principal Payment Date, at maturity or upon acceleration, prepayment,
      optional prepayment, required prepayment or otherwise, when the same shall
      become due and in the place of payment and currency of payment originally
      agreed;

            (b) (i) the Borrower shall fail to pay any interest or other amount
      (including Additional Amounts) on or with respect to the Loan or (ii) the
      Financial Trustee shall fail to pay any interest or other amount
      (including Additional Amounts) on or with respect to the Trust Notes when
      the same becomes due and payable, in each case within 30 days after the
      due date thereof and in the place of payment and currency of payment
      originally agreed (excluding any premium or other amount payable in
      respect of the principal amount of the Loan or the Trust Notes, as the
      case may be, upon any prepayment, which shall be subject to clause (a) of
      this Section 6.01);

            (c) failure by the Borrower to comply, or to ensure that its
      Subsidiaries comply, or any of such Subsidiaries shall fail to comply, to
      the extent applicable, as if they were direct parties thereto (whether or
      not the Borrower is able to ensure such compliance) with Section 5.02(c);

            (d) the Borrower shall fail to comply (or to cause its Subsidiaries
      to comply), to the extent applicable, as if they were direct parties
      thereto (whether or not either of the Borrower is able to ensure such
      compliance) with any of the covenants or agreements set forth in this
      Agreement or the Additional Transaction Documents to which it is a party
      (other than as contemplated in clauses (a), (b) and (c) of this Section
      6.01) and such failure continues for 60 days after receipt by the Borrower
      from the Lender of written notice thereof (which notice shall specify the
      Default, demand that it be remedied and state that it is a "Notice of
      Default");

            (e) the Borrower shall (i) default in the payment of principal of,
      premium or interest on, any note, bond, coupon or other instrument
      evidencing Indebtedness for money borrowed in an amount equal to or in
      excess of U.S.$25 million (or its foreign currency equivalent at the
      time), when and as the same shall become due and payable, if such default
      shall continue for more than the period of grace, if any, originally
      applicable thereto and the time for payment of such amount has not been
      effectively extended, or (ii) default in the observance of any other terms
      and conditions relating to any such Indebtedness for money borrowed or
      raised, if the effect of such default is to cause such Indebtedness to
      become due prior to its maturity;

                                       33
<PAGE>

            (f) one or more final and non-appealable judgments or orders for the
      payment of money in excess of U.S.$25 million (or its equivalent in any
      other currency), either individually or in the aggregate for all such
      final judgments or orders, shall be rendered against the Borrower or any
      of its respective properties and shall not be paid or discharged, and
      there shall have been a period of 45 days following entry of such final
      judgment or order;

            (g) the Borrower shall fail to make an offer to repurchase the Trust
      Notes pursuant to Section 2.05(b);

            (h) (i) the Borrower shall commence any case, proceeding or other
      action (x) under any existing or future law of any jurisdiction, domestic
      or foreign, relating to bankruptcy, insolvency, reorganization or relief
      of debtors, seeking to have an order for relief entered with respect to
      it, or seeking to adjudicate it bankrupt or insolvent, or seeking
      reorganization, arrangement, adjustment, winding-up, liquidation,
      dissolution, composition or other relief with respect to it or its debts,
      or (y) seeking appointment of a receiver, trustee, sindico, custodian,
      conservator or other similar official for it or for all or any substantial
      part of its assets, or the Borrower shall make a general assignment for
      the benefit of its creditors; or (ii) there shall be commenced against the
      Borrower, any case, proceeding or other action of a nature referred to in
      clause (i) above which (A) results in the entry of an order for relief or
      any such adjudication or appointment or (B) remains undismissed,
      undischarged or unbonded for a period of sixty days; or (iii) there shall
      be commenced against the Borrower, any case, proceeding or other action
      seeking issuance of a warrant of attachment, execution, distraint or
      similar process against all or any substantial part of its assets which
      results in the entry of an order for any such relief in excess of U.S.$25
      million (or its equivalent in any other currency) which shall not have
      been vacated, discharged, or stayed or bonded pending appeal within sixty
      days from the entry thereof; or (iv) the Borrower shall take any action in
      furtherance of, or indicating its consent to, approval of, or acquiescence
      in, any of the acts set forth in clause (i), (ii), or (iii) above; or (v)
      the Borrower shall generally not, or shall be unable to, or shall admit in
      writing its inability to, pay its debts as they become due;

            (i) all or a material portion of the property of the Borrower and
      its Subsidiaries taken as a whole shall be condemned, seized or otherwise
      appropriated, or custody of such property shall be assumed by any
      Government Authority, or the Borrower and its Subsidiaries taken as a
      whole shall be prevented from exercising normal control over all or a
      material part of their collective property and such default is not
      remedied in the 30 days after it occurs;

            (j) any document executed in connection with the Loan (including,
      without limitation, this Agreement and the Additional Transaction
      Documents) shall be challenged by (x) any of the parties thereto (or any
      such party shall deny or disaffirm any of its obligations thereunder) or
      (y) any other Person, by means of judicial or administrative action
      seeking to invalidate or declare unenforceable the agreements listed above
      or any Lien relating thereto granted in favor of the Lender at any time or
      any of the rights of the Lender thereunder or the Borrower, and any
      government authority shall have taken any injunctive relief or any other
      action in response thereto which in the case of

                                       34
<PAGE>

      challenge by any Person (other than the Borrower) is materially adverse to
      the rights of the Lender or other parties to, or beneficiaries of, the
      Additional Transaction Documents; provided, however, that the Borrower or
      any other party to the Additional Transaction Documents shall be unable to
      obtain a reversal on such injunctive relief or shall be unable to achieve
      the discontinuation of any other actions described above 90 days after the
      granting of such injunctive relief or the commencement of such actions;

            (k) this Agreement or any Additional Transaction Document shall be
      invalidated or declared unenforceable , to the extent it is materially
      adverse to the rights of the Lender or other parties to, or beneficiaries
      of, the Additional Transaction Documents; or

            (l) any provision of the documents executed in connection with the
      Loan (including, without limitation, this Agreement and the Additional
      Transaction Documents) shall for any reason cease to be valid and binding
      on or enforceable against any party thereto in accordance with its terms,
      or the assets subject thereto or any Liens created in favor of the Lender
      shall become unperfected or no longer constitute a security interest in
      the assets covered thereby, or any judicial action shall prevent or delay
      the performance or observance by the Borrower of any of their respective
      material obligations under such documents, in any such case, which shall
      have a Material Adverse Effect or a material adverse effect on the rights
      of the Lender or the other parties to the Additional Transaction
      Documents.

            Upon the occurrence and during the continuance of any Event of
Default, other than an Event of Default as described in (h) or (i) above, if the
Trust Notes have been accelerated in accordance with their terms, the Lender
shall, by notice to the Borrower, declare the principal of the Loan, all
interest thereon and all other amounts payable hereunder and thereunder to be
forthwith due and payable, whereupon the principal of the Loan, all such
interest and all such amounts shall become and be forthwith due and payable,
without presentment, demand, protest or further notice of any kind, all of which
are expressly waived by the Borrower; provided, however, that any time after a
declaration of acceleration has occurred and before a judgment for payment of
the money due has been obtained by the Lender, the Lender may, by written notice
to the Borrower, rescind and annul such declaration and its consequences if the
rescission would not conflict with any judgment or decree of a court of
competent jurisdiction; provided, however, that in the case of an Event of
Default described in (h) or (i) above, the principal of the Loan, all such
interest and all such other amounts shall automatically become and be due and
payable, without presentment, demand, protest or any notice of any kind, all of
which are expressly waived by the Borrower.

            A Default under clause (d) is not an Event of Default until the
Lender notifies the Borrower in writing of the Default and the Borrower does not
cure such Default within the time specified after receipt of such notice. Such
notice must specify the Default, demand that it be remedied and state that such
notice is a "Notice of Default".

            The Borrower shall deliver to the Lender, within 30 days after the
occurrence thereof, written notice in the form of an Officers' Certificate of
any event that on the date of such

                                       35
<PAGE>

notice with the giving of notice or the lapse of time or both would become an
Event of Default, its status and what action the Borrower is taking or proposes
to take with respect thereto.

                                   ARTICLE VII

                                  MISCELLANEOUS

            SECTION 7.01. Amendments, Etc. No amendment or waiver of any
provision of this Agreement, nor consent to any departure by the Borrower
therefrom, shall in any event be effective unless the same shall be in writing
and signed by the Lender (and, in the case of an amendment, the Borrower), and
then such waiver or consent shall be effective only in the specific instance and
for the specific purpose for which given.

            SECTION 7.02. Notices, Etc. All notices and other communications
provided for hereunder shall be in writing (including telegraphic, telecopy or
telex communication) and telegraphed, telecopied, telexed or delivered, if to
the Borrower, at its address at 12 de Octubre y Gran Canaria 1878, B1878AAB,
Quilmes, Buenos Aires, Argentina, Attention: Francisco Cressall (telefax: +54 11
4349-1858); if to the Branch of Citibank N.A. established in the Republic of
Argentina, as the initial Lender, at its address at Bartolome Mitre 530,
C1036AAJ, Buenos Aires, Argentina, Attention: Adrian Scosceria (telefax: +54 11
4329-1029); if to the Financial Trustee, in its capacity as the Lender, at its
address at Victoria Ocampo 360, Piso 8(0), C1107BGA, Buenos Aires, Argentina,
Attention: Florencia Regueiro (telefax: +54 11 4320-0576); or, as to any party,
at such other address as shall be designated by such party in a written notice
to the other parties. All such notices and other communications shall, when
delivered by reputable courier service, telegraphed, telecopied or telexed, be
effective when deposited with a reputable courier service, delivered to the
telegraph company, transmitted by telecopier or confirmed by telex answerback,
respectively. Delivery by telecopier of an executed counterpart of any amendment
or waiver of any provision of this Agreement or of any Exhibit hereto to be
executed and delivered hereunder shall be effective as delivery of an original
executed counterpart thereof.

            SECTION 7.03. No Waiver; Remedies. No failure on the part of the
Lender to exercise, and no delay in exercising, any right hereunder shall
operate as a waiver thereof; nor shall any single or partial exercise of any
such right preclude any other or further exercise thereof or the exercise of any
other right. The remedies herein provided are cumulative and not exclusive of
any remedies provided by law.

            SECTION 7.04. Costs and Expenses. (a) The Borrower agrees to pay on
demand (i) all costs and expenses of the Lender in connection with the
preparation, execution, delivery, administration, modification and amendment of
this Agreement and the Additional Transaction Documents (including, without
limitation, (A) all due diligence, collateral review, syndication,
transportation, computer, duplication, appraisal, audit, insurance, consultant,
search, filing and recording fees and expenses and (B) the reasonable fees and
expenses of counsel for the Lender with respect thereto, with respect to
advising the Lender as to their rights and responsibilities, or the perfection,
protection or preservation of rights or interests, under this Agreement and the
Additional Transaction Documents, with respect to negotiations with the

                                       36
<PAGE>

Borrower or any of its Subsidiaries or with other creditors of the Borrower or
any of its Subsidiaries arising out of any Event of Default or any events or
circumstances that may give rise to an Event of Default and with respect to
presenting claims in or otherwise participating in or monitoring any bankruptcy,
insolvency or other similar proceeding involving creditors' rights generally and
any proceeding ancillary thereto) and (ii) all costs and expenses of the Lender
in connection with the enforcement of this Agreement and the Additional
Transaction Documents, whether in any action, suit or litigation, or any
bankruptcy, insolvency or other similar proceeding affecting creditors' rights
generally (including, without limitation, the reasonable fees and expenses of
counsel with respect thereto). The total aggregate amount of cost and expenses
payable by the Borrower under this Section 7.04 shall be limited to the amount
agreed upon between the Borrower and the Lender.

            (b) The Borrower agrees to indemnify, defend and save and hold
harmless the Lender and each of its Affiliates and their respective officers,
directors, employees, agents and advisors (each, an "INDEMNIFIED PARTY") from
and against, and shall pay on demand, any and all claims, damages, losses,
liabilities and expenses (including, without limitation, reasonable fees and
expenses of counsel) that may be incurred by or asserted or awarded against any
Indemnified Party, in each case arising out of or in connection with or by
reason of (including, without limitation, in connection with any investigation,
litigation or proceeding or preparation of a defense in connection therewith)
the actual or proposed use of the proceeds of the Loan, this Agreement and the
Additional Transaction Documents or any of the transactions contemplated
thereby, except to the extent such claim, damage, loss, liability or expense is
found in a final, non-appealable judgment by a court of competent jurisdiction
to have resulted from such Indemnified Party's gross negligence or willful
misconduct. In the case of an investigation, litigation or other proceeding to
which the indemnity in this Section 7.04(b) applies, such indemnity shall be
effective whether or not such investigation, litigation or proceeding is brought
by the Lender, its directors, shareholders or creditors or an Indemnified Party,
whether or not any Indemnified Party is otherwise a party thereto and whether or
not the Transaction is consummated. The Borrower also agrees not to assert any
claim against the Lender or any of its Affiliates, or any of their respective
officers, directors, employees, agents and advisors, on any theory of liability,
for special, indirect, consequential or punitive damages arising out of or
otherwise relating to the actual or proposed use of the proceeds of the Loan,
this Agreement and the Additional Transaction Documents or any of the
transactions contemplated thereby.

            (c) If the Borrower fails to pay when due any costs, expenses or
other amounts payable by it under this Agreement and the Additional Transaction
Documents, including, without limitation, fees and expenses of counsel and
indemnities, such amount may be paid on behalf of the Borrower by the Lender, in
its sole discretion.

            (d) Without duplication of any amount required to be paid by the
Borrower under Section 2.08, the Borrower hereby agrees to indemnify the
Financial Trustee (i) in its capacity as Lender hereunder for all Taxes (other
than those described in Section 2.08(b)(iii) or (iv)); and (ii) in its capacity
as Issuer, under the Trust Notes Indenture, for all Taxes (other than those
described in Section 2.08(b)), in each case regardless of whether such Taxes are
imposed on or owing by (x) the Trust or (y) the Financial Trustee.

                                       37
<PAGE>

            (e) Without prejudice to the survival of any other agreement of the
Borrower hereunder or any Additional Transaction Documents to which it is a
party, the agreements and obligations of the Borrower contained in Section 2.08
and this Section 7.04 shall survive the payment in full of principal, interest
and all other amounts payable hereunder or under any Additional Transaction
Document.

            SECTION 7.05. Waiver of Set-off. The Lender waives any right of
setoff, counterclaim, deduction, diminution or abatement based upon any claim it
may have against the Borrower under this Agreement or under any Additional
Transaction Document.

            SECTION 7.06. Binding Effect. This Agreement shall become effective
when it shall have been executed by the Borrower and the Lender and thereafter
shall be binding upon and inure to the benefit of the Borrower, the Lender and
their respective successors and permitted assigns, except that the Borrower
shall not have the right to assign its rights hereunder or any interest herein
without the prior written consent of the Lender.

            SECTION 7.07. Permitted Assignments. The Lender may not assign its
rights and obligations under this Agreement, the Expense Agreement or any other
Additional Transaction Document to any Person, except that (a) the Branch of
Citibank N.A. established in the Republic of Argentina, as the initial Lender,
shall, on the Issue Date immediately after execution hereof, assign its rights
and obligations hereunder the other Additional Transaction Documents to the
Financial Trustee as provided under the Assignment Agreement; provided, however,
that such assignment shall comply with the terms of Section 72 of Argentine Law
No. 24,441 and (b) upon the occurrence and during the continuance of an Event of
Default, the Financial Trustee may assign its rights and obligations hereunder
and under the Expense Agreement and the other Additional Transaction Documents,
in each case in its capacity as the Lender, to the Trust Notes Trustee on behalf
of the Noteholders.

            SECTION 7.08. Currency Rate Indemnity. The Borrower agrees that, if
a judgment or order made by any court for the payment of any amount in respect
of any of its obligations under, or with respect to, this Agreement or the Loan
is expressed in a currency other than U.S. dollars, the Borrower will indemnify
the Lender against any deficiency arising from any variation in rates of
exchange between the date as of which the denomination currency is notionally
converted into the judgment currency for the purposes of the judgment or order
and the date of actual payment. This indemnity will constitute a separate and
independent obligation from the Lender's other obligations under this Agreement,
will give rise to a separate and independent cause of action, will apply
irrespective of any waiver of any other provision hereunder granted from time to
time and will continue in full force and effect notwithstanding any judgment or
order for a liquidated sum or sums in respect of amounts due in respect of the
Loan or under any such judgment or order.

            SECTION 7.09. Foreign Exchange Restrictions. In the event of any
foreign exchange restriction or prohibition in Argentina, the Borrower shall
make any and all payments in respect of interest on or principal of the Loan, to
the extent permitted by applicable law, in U.S. dollars by:

                                       38
<PAGE>

            (i) purchasing, with pesos (or other legal currency of Argentina),
      "Bonos Externos Globales de la Republica Argentina" or other public
      securities issued by Argentina and payable in U.S. dollars, and selling
      such instruments outside of Argentina for U.S. dollars; or

            (ii) any other legal mechanism for the acquisition of U.S. dollars
      in any exchange market.

            All costs and Taxes in connection with the transactions described
above shall be borne by the Borrower. The Borrower's payment obligations under
the Loan may only be deemed satisfied and discharged upon receipt by the
Borrower of the U.S. dollar amounts obtained through the transactions specified
in Clause (i) or (ii) above necessary to satisfy the relevant amount owing on
the Loan.

            SECTION 7.10. Execution in Counterparts. This Agreement may be
executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same
agreement. Delivery of an executed counterpart of a signature page to this
Agreement by telecopier shall be effective as delivery of an original executed
counterpart of this Agreement.

            SECTION 7.11. Jurisdiction, Etc. (a) Each of the parties hereto
hereby irrevocably and unconditionally submits, for itself and its property, to
the nonexclusive jurisdiction of any New York State court or Federal court of
the United States sitting in the Borough of Manhattan in The City of New York,
New York, United States, and any appellate court from any thereof, in any action
or proceeding arising out of or relating to this Agreement or any of the
Additional Transaction Documents to which it is a party, or for recognition or
enforcement of any judgment, and each of the parties hereto hereby irrevocably
and unconditionally agrees that all claims in respect of any such action or
proceeding may be heard and determined in any such New York State court or, to
the fullest extent permitted by law, in such Federal court. Each of the parties
hereto agrees that a final judgment in any such action or proceeding shall be
conclusive and may be enforced in other jurisdictions by suit on the judgment or
in any other manner provided by law. Nothing in this Agreement shall affect any
right that any party may otherwise have to bring any action or proceeding
relating to this Agreement or the Additional Transaction Documents in the courts
of any jurisdiction.

            (b) Each of the parties hereto irrevocably and unconditionally
waives, to the fullest extent it may legally and effectively do so, any
objection that it may now or hereafter have to the laying of venue of any suit,
action or proceeding arising out of or relating to this Agreement or the
Additional Transaction Documents to which it is a party in any New York State or
Federal court. Each of the parties hereto hereby irrevocably waives, to the
fullest extent permitted by law, the defense of an inconvenient forum to the
maintenance of such action or proceeding in any such court.

            (c) The Borrower has appointed CT Corporation System, 111 Eighth
Avenue, New York, New York 10011 as its authorized agent (the "AUTHORIZED
AGENT") upon whom process may be served in any suit, action or proceeding
arising out of or based upon this

                                       39
<PAGE>

Agreement or the transactions contemplated herein which may be instituted in any
state or federal court in The City of New York, New York, by the Lender, the
directors, officers, employees and agents of the Lender, or by any person who
controls any of the Lender, and expressly accepts the jurisdiction of any such
court in respect of any such suit, action or proceeding. The Borrower hereby
represents and warrants that the Authorized Agent has accepted such appointment
and has agreed to act as said agent for service of process, and the Borrower
agrees to take any and all action, including the filing of any and all documents
that may be necessary to continue such appointment in full force and effect as
aforesaid. Subject to applicable law, service of process upon the Authorized
Agent shall be deemed, in every respect, effective service of process upon the
Borrower.

            SECTION 7.12. Waiver of Immunities. To the extent that the Borrower
may in any jurisdiction claim for itself or its assets immunity from a suit,
execution, attachment, whether in aid of execution, before judgment or
otherwise, or other legal process in connection with this Agreement or the
Additional Transaction Documents and to the extent that in any jurisdiction
there may be immunity attributed to the Borrower or its assets, whether or not
claimed, the Borrower irrevocably agrees with the Lender, not to claim, and
irrevocably waives, the immunity to the full extent permitted by law.

            SECTION 7.13. Governing Law. This Agreement shall be governed by,
and construed in accordance with, the laws of the State of New York.

            SECTION 7.14. Waiver of Jury Trial. Each of the Borrower and the
Lender irrevocably waives all right to trial by jury in any action, proceeding
or counterclaim (whether based on contract, tort or otherwise) arising out of or
relating to any of this Agreement, the Additional Transaction Documents, the
Loan, or the actions of the Lender in the negotiation, administration,
performance or enforcement hereof or thereof.

            SECTION 7.15. Payment for Consent. If the Borrower or any of its
Subsidiaries shall, directly or indirectly, pay or cause to be paid any
consideration, whether by way of interest, fee or otherwise, to the Lender for
or as an inducement to any consent, waiver or amendment of any of the terms or
provisions of this Agreement, such consideration shall be offered to be paid to
the Lender and to each holder of the Trust Notes that so consents, waives or
agrees to amend such terms or provisions in the time frame set forth in
solicitation documents relating to such consent, waiver or amendment.

                  [Remainder of Page Intentionally Left Blank]

                                       40
<PAGE>

            IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be executed by their respective officers thereunto duly authorized, as of the
date first above written.

                                               CERVECERIA Y MALTERIA QUILMES
                                                   S.A.I.C.A. Y G.,
                                                   as Borrower

                                               By /s/ Francis Cressall
                                                  ----------------------------
                                                  Name:  Francis Cressall
                                                  Title: Attorney-in-fact

                                               By /s/ Norberto Berdayes
                                                  ----------------------------
                                                  Name:  Norberto Berdayes
                                                  Title: Attorney-in-fact

                                               BRANCH OF CITIBANK N.A.
                                                 ESTABLISHED IN THE REPUBLIC
                                                 OF ARGENTINA,
                                                 as Lender

                                               By /s/ Ronaldo Strazzolini
                                                  ----------------------------
                                                  Name:  Ronaldo Strazzolini
                                                  Title:
<PAGE>

                                                                       EXHIBIT A

                                                                         FORM OF
                                                             NOTICE OF BORROWING

                                                                          [Date]

Branch of Citibank N.A.
    established in the Republic of Argentina,
Bartolome Mitre 530
C1036AAJ, Buenos Aires, Argentina
Attention:  Adrian Scosceria

            Ladies and Gentlemen:

            The undersigned, Cerveceria y Malteria Quilmes S.A.I.C.A. y G., an
Argentine corporation (the "Borrower"), refers to the Credit Agreement, dated as
of [ ], 2005 (as amended from time to time, the "Credit Agreement," the terms
defined therein being used herein as therein defined), among the Borrower and
the Lender, we hereby give notice, irrevocably, pursuant to Section 2.02 of the
Credit Agreement, that we request the borrowing of the Loan under the Credit
Agreement, and in that connection we set forth below the information relating to
the borrowing (the "Proposed Borrowing") as required by Section 2.02 of the
Credit Agreement:

      (i)   The Issue Date of the Proposed Borrowing is ___________, 2005.

      (ii)  The aggregate principal amount of the Proposed Borrowing is
            U.S.$_______________.

      We hereby certify that the following statements are true on the date
hereof, and shall be true on the Issue Date:

            (A) The representations and warranties of the Borrower contained in
the Credit Agreement and in the Additional Transaction Documents to which it is
a party are correct in all material respects on and as of the date of the
Proposed Borrowing before and after giving effect to such Proposed Borrowing and
to the application of the proceeds therefrom, as though made on and as of such
date (other than any such representations and warranties that, by their terms,
refer to a specific date other than the date of such Proposed Borrowing, in
which case as of such specific date); and

            (B) no Default or Event of Default has occurred and is continuing,
or would result from such Proposed Borrowing or from the application of the
proceeds thereof.

                                      A-1
<PAGE>

                                       Very truly yours,

                                       CERVECERIA Y MALTERIA QUILMES
                                          S.A.I.C.A. Y G., as the Borrower under
                                          the Credit Agreement

                                       By _____________________________
                                          Name:
                                          Title:

<PAGE>

                                                                     EXHIBIT B-1

                                                                         FORM OF
                                                                 PROMISSORY NOTE

U.S.$_______________                                  Dated:  _________ __, ____

            FOR VALUE RECEIVED, the undersigned, Cerveceria y Malteria Quilmes
S.A.I.C.A. y G., an Argentine corporation (the "BORROWER"), HEREBY PROMISES TO
PAY to the order of _________________________ (the "LENDER") the principal
amount of the Advance (as defined below) owing to the Lender by the Borrower
pursuant to the Credit Agreement dated as of ________ (as amended, amended and
restated, supplemented or otherwise modified from time to time, the "CREDIT
AGREEMENT"; terms defined therein, unless otherwise defined herein, being used
herein as therein defined) between the Borrower and the Lender, on the dates and
in the amounts specified in the Credit Agreement.

            The Borrower also promises to pay to the Lender interest on the
unpaid principal amount the Advance from the date such Advance is made to the
Borrower until such principal amount is paid in full, at such interest rates,
and payable at such times, as are specified in the Credit Agreement.

            Both principal and interest are payable to the Lender at the
Lender's Account in same day funds in U.S. dollars or such other coin or
currency of the United States that as at such date of payment is legal tender
for the payment of public and private debts. The Advance owing to the Lender by
the Borrower and the maturity thereof, and all payments made on account of
principal thereof, shall be recorded by the Lender and, prior to any transfer
hereof, endorsed on the grid attached hereto, which is part of this Promissory
Note; provided, however, that the failure of the Lender to make any such
recordation or endorsement shall not affect the obligations of the Borrower
under this Promissory Note.

            This Promissory Note is one of the notes referred to in, and is
entitled to the benefits of, the Credit Agreement. The Credit Agreement, among
other things, (i) provides for the making of a single advance (the "ADVANCE") by
the Lender to the Borrower in an amount not to exceed the U.S. dollar amount
first above mentioned, the indebtedness of the Borrower resulting from such
Advance being evidenced by this Promissory Note, and (ii) contains provisions
permitting the acceleration of the maturity of the Advance upon occurrence and
during the continuance of an Event of Default and also for prepayments of the
Advance prior to the maturity thereof upon the terms and conditions therein
specified.

                                       CERVECERIA y MALTERIA QUILMES
                                          S.A.I.C.A. y G.

                                       By ______________________________
                                          Name:
                                          Title:

                                      B-1
<PAGE>

                       ADVANCES AND PAYMENTS OF PRINCIPAL

<TABLE>
<CAPTION>
                                AMOUNT OF         UNPAID        NOTATION
                AMOUNT OF     PRINCIPAL PAID     PRINCIPAL        MADE
   DATE          ADVANCE        OR PREPAID        BALANCE          BY
------------  -------------  ----------------  -------------  -------------
<S>           <C>            <C>               <C>            <C>
____________  _____________  ________________  _____________  _____________
____________  _____________  ________________  _____________  _____________
____________  _____________  ________________  _____________  _____________
____________  _____________  ________________  _____________  _____________
____________  _____________  ________________  _____________  _____________
____________  _____________  ________________  _____________  _____________
____________  _____________  ________________  _____________  _____________
____________  _____________  ________________  _____________  _____________
____________  _____________  ________________  _____________  _____________
____________  _____________  ________________  _____________  _____________
____________  _____________  ________________  _____________  _____________
____________  _____________  ________________  _____________  _____________
____________  _____________  ________________  _____________  _____________
____________  _____________  ________________  _____________  _____________
____________  _____________  ________________  _____________  _____________
____________  _____________  ________________  _____________  _____________
____________  _____________  ________________  _____________  _____________
____________  _____________  ________________  _____________  _____________
____________  _____________  ________________  _____________  _____________
____________  _____________  ________________  _____________  _____________
</TABLE>

                                      B-2

<PAGE>

                                                                     EXHIBIT B-2

                                                 FORM OF RECONOCIMIENTO DE DEUDA

                        Ciudad Autonoma de Buenos Aires, [__] de [____] de 2005.

            Por el presente CERVECERIA Y MALTERIA QUILMES S.A.I.C.A. Y G. (la
"Deudora") RECONOCE ADEUDAR a [_____], con domicilio en la calle [_____], (el
"Acreedor"), en virtud del [Contrato de Prestamo en Dolares] suscripto por la
Deudora y el Acreedor con fecha [__] de [____] de 2005 (el "Contrato de
Prestamo") el monto en Dolares Estadounidenses de [US$ __________ (dolares
estadounidenses [____])] (el "Capital"), el cual devengara intereses
compensatorios y punitorios y resultara pagadero, de conformidad a los terminos
y condiciones que se indican a continuacion:

            1. El Capital sera amortizado en 5 (cinco) cuotas anuales, iguales y
consecutivas comenzando dichos pagos el [____] de [____] de [____] y terminando
los mismos el [___] de [___] de [____] (las "Fechas de Pago de Capital").

            2. Asimismo, el Capital devengara intereses a una tasa nominal anual
equivalente al [__]% desde la fecha de suscripcion del presente Reconocimiento
de Deuda (los "Intereses Compensatorios").

                  2.1 Los Intereses Compensatorios seran abonados los dias
      [____] de [____] y [____] de [____] de cada ano comenzando dichos pagos el
      [______] de [______] de [______] y concluyendo los mismos el [______] de
      [____] de [____] (las "Fechas de Pago de Intereses" y junto con las Fechas
      de Pago de Capital, las "Fechas de Pago").

                  2.2 Los Intereses Compensatorios seran calculados y computados
      sobre la base de un ano de 360 (trescientos sesenta) dias con 12 (doce)
      meses de 30 (treinta) dias cada uno.

            3. En el supuesto en que la Deudora no concretase cualquier pago de
capital y/o intereses segun lo dispuesto en el presente Reconocimiento de Deuda,
se aplicara respecto de dichos montos debidos e impagos y por sobre el Interes
Compensatorio, desde la fecha en que dicho pago debiera de haber sido realizado
hasta la fecha del efectivo pago, un interes punitorio equivalente al [1%] (uno
por ciento) anual (el "Interes Punitorio"). Dicho Interes Punitorio, se
devengara y sera pagadero en cada Fecha de Pago posterior al incumplimiento
salvo que el mismo haya sido previamente cancelado.

            4. Todas las sumas adeudadas por la Deudora en virtud del presente
Reconocimiento de Deuda deberan ser abonadas exclusivamente en Dolares
Estadounidenses billete. Si en una Fecha de Pago existiere cualquier restriccion
o prohibicion para acceder al Mercado Unico y Libre de Cambios de la Republica
Argentina para abonar las sumas debidas bajo el presente en Dolares
Estadounidenses, la Deudora podra, en tal Fecha de Pago, abonar cualquier suma
adeudada en tal fecha en Pesos (o la moneda que sea en ese momento de curso

                                      B-3
<PAGE>

legal en la Republica Argentina) mediante la conversion del monto relevante
adeudado en Dolares Estadounidenses a Pesos de modo tal que la suma resultante
sea suficiente para cubrir cualquier monto adeudado en Dolares Estadounidenses
en tal Fecha de Pago.

            Todos los impuestos, costos, comisiones y gastos relacionados con la
conversion descripta mas arriba deberan ser soportados exclusivamente y en su
totalidad por la Deudora. Las obligaciones de pago de la Deudora establecidas en
el presente Reconocimiento de Deuda solo se tendran por canceladas con la
recepcion por parte del Acreedor de Dolares Estadounidenses necesarios para
satisfacer los montos debidos segun lo dispuesto en el presente Reconocimiento
de Deuda obtenidos a traves de la operacion descripta.

5. La firma del presente Reconocimiento de Deuda no importa quita, espera,
novacion ni cualquier otra situacion que permita presumir por parte del
Acreedor, renuncia o menoscabo, total o parcial, de sus derechos y/o garantias y
cualquier otro derecho que surja del Contrato de Prestamo.

6. Los pagos aqui detallados seran efectuados, en las fechas previstas, mediante
transferencia bancaria a la cuenta bancaria [_____] a nombre de [______], o la
que en el futuro indique [______] a la Deudora por escrito.

7. La falta de pago de cualquier suma que deba ser abonada por la Deudora,
colocara a esta automaticamente en mora, dando derecho al Acreedor sin necesidad
de interpelacion judicial o extrajudicial alguna, a considerar la deuda total
detallada en el encabezamiento del presente Reconocimiento de Deuda como de
plazo vencido, haciendose exigible el total de la misma con mas los Intereses
Compensatorios e Intereses Punitorios que correspondan hasta la fecha de la
cancelacion definitiva, con mas los honorarios legales, costos, costas y demas
gastos resultantes, como asi tambien el pago de cualquier otra suma que, por
cualquier causa o concepto, corresponda ser abonada o entregada al Acreedor en
virtud del presente Reconocimiento de Deuda, pudiendose en consecuencia ejecutar
el presente Reconocimiento de Deuda a partir del momento en que la Deudora se
encuentre en mora.

8. Los plazos establecidos para la amortizacion del Capital segun se detallan en
el presente se consideraran caducos y de plazo vencido y seran acelerados, con
los efectos descriptos en el punto 8 precedente, en el supuesto en que ocurriera
algun supuesto de incumplimiento de los previstos en la Clausula [5.01] del
Contrato de Prestamo.

9. Todos los montos adeudados bajo el presente, seran pagados libres de
deducciones por impuestos, tasas, gastos, derechos o retenciones, presentes o
futuros, de cualquier naturaleza o tipo, e impuestos por cualquier autoridad
impositiva de la Republica Argentina o de cualquier otra jurisdiccion en la cual
la Deudora se encuentre constituida a los efectos impositivos o donde los pagos
bajo el presente deban de ser realizados. Dichos impuestos, tasas, gastos,
derechos o retenciones, en caso de ser aplicables, deberan ser pagados
exclusivamente por, y seran a cargo de, la Deudora.

10. La Deudora constituye domicilio en [________________].

                                      B-4
<PAGE>

11. A todo evento se reconoce que este Reconocimiento de Deuda confiere al
Acreedor la accion procesal ejecutiva en los terminos y con el alcance de los
arts. 520, 523 y concordantes del Codigo Procesal Civil y Comercial de la
Nacion.

12. La ley aplicable al presente titulo sera la de la Republica Argentina. A
todos los efectos legales derivados del mismo, la Deudora se somete irrevocable,
firme e incondicionalmente a la jurisdiccion y competente de los Tribunales
Ordinarios en lo Comercial de la Ciudad de Buenos Aires, renunciando a cualquier
otro fuero o jurisdiccion que le pudiera corresponder.

13. Todas las notificaciones que se deban cursar a la Deudora, sean judiciales o
extrajudiciales, seran remitidas al domicilio constituida por la misma en el
presente, sin poder modificarlo fuera de la circunscripcion de la Capital
Federal, destacandose que cualquier cambio de domicilio debera ser notificado al
Acredor en forma fehaciente y en tiempo oportuno, bajo apercibimiento de tenerlo
por notificado en el aqui constituido.

14. La presente declaracion y compromiso por parte de la Deudora se formula de
modo irrevocable y se considera aceptada por el Acreedor.

15. El presente titulo es suscripto por la Deudora ante un escribano publico
debidamente matriculado, el cual (i) certifica la firma del firmante del
presente, como asi tambien sus facultades para otorgar el presente, y (ii)
registra dicha certificacion en su protocolo notarial, a los efectos de dotar al
presente del caracter de titulo ejecutivo en los terminos del articulo 523,
inciso 2do. del Codigo Procesal Civil y Comercial de la Nacion.

            CERVECERIA Y MALTERIA QUILMES S.A.I.C.A. Y G.

            POR____________________
            TITULO:
            NOMBRE:
            DOCUMENTO:
            DOMICILIO:

                                      B-5
<PAGE>

                                                                       EXHIBIT C

                                                                         FORM OF
                                                       ASSIGNMENT AND ACCEPTANCE

            Reference is made to the Credit Agreement dated as of March 22, 2005
(as amended, amended and restated, supplemented or otherwise modified from time
to time, the "CREDIT AGREEMENT"; the terms defined therein, unless otherwise
defined herein, being used herein as therein defined) between Cerveceria y
Malteria Quilmes S.A.I.C.A. y G., an Argentine corporation (the "BORROWER") and
The Branch of Citibank N.A. established in the Republic of Argentina (the
"LENDER"). Terms used herein and not otherwise defined shall have the meanings
assigned to them in the Credit Agreement.

            The "Assignor" referred to on Schedule 1 hereto (the "ASSIGNOR") and
the "Assignee" referred to on Schedule 1 hereto (each, an "ASSIGNEE") agree with
respect to all information relating to it and its assignment hereunder and on
Schedule 1 hereto as follows:

            (1) Such Assignor hereby sells and assigns, without recourse except
as to the representations and warranties made by it herein, to such Assignee,
and such Assignee hereby purchases and assumes from such Assignor, a 100%
interest in and to such Assignor's rights and obligations under the Credit
Agreement and any Additional Transaction Document as of the date hereof of all
outstanding rights and obligations under the Credit Agreement. After giving
effect to such sale and assignment, the amount of the Loan owing to such
Assignee will be as set forth on Schedule 1 hereto.

            (2) Such Assignor (i) represents and warrants that its name set
forth on Schedule 1 hereto is its legal name, that it is the legal and
beneficial owner of the interest or interests being assigned by it hereunder and
that such interest or interests are free and clear of any adverse claim; (ii)
makes no representation or warranty and assumes no responsibility with respect
to any statements, warranties or representations made in or in connection with
the Credit Agreement or any Additional Transaction Documents or the execution,
legality, validity, enforceability, genuineness, sufficiency or value of, or the
perfection or priority of any lien or security interest created or purported to
be created under or in connection with, the Credit Agreement or any Additional
Transaction Documents or any other instrument or document furnished pursuant
thereto, except for the representations and warranties given by the Assignor
under Section 8.2 of the Financial Trust Agreement, dated March 15, 2005, by and
between ABN AMRO Trust Company (Argentina) S.A., as financial trustee and the
Assignor, as trustor; and (iii) makes no representation or warranty and assumes
no responsibility with respect to the financial condition of the Borrower or the
performance or observance by the Borrower of any of its obligations under the
Credit Agreement or any Additional Transaction Documents or any other instrument
or document furnished pursuant thereto.

            (3) Such Assignee (i) confirms that it has received a copy of the
Credit Agreement, together with copies of the financial statements referred to
in Section 4.01(a) thereof and such other documents and information as it has
deemed appropriate to make its own credit analysis and decision to enter into
this Assignment and Acceptance; (ii) agrees that it will,

                                      C-1
<PAGE>

independently and without reliance upon the Assignor and based on such documents
and information as it shall deem appropriate at the time, continue to make its
own credit decisions in taking or not taking action under the Credit Agreement;
(iii) represents and warrants that its name set forth on Schedule 1 hereto is
its legal name; and (iv) agrees that it will perform in accordance with their
terms all of the obligations that by the terms of the Credit Agreement are
required to be performed by it as a Lender.

            (4) The effective date for this Assignment and Acceptance (the
"EFFECTIVE DATE") shall be the date of acceptance hereof by the Lender, unless
otherwise specified on Schedule 1 hereto.

            (5) As of the Effective Date, (i) such Assignee shall be a party to
the Credit Agreement and have all the rights and obligations of the Lender
thereunder and (ii) such Assignor shall relinquish its rights and be fully
released from its obligations under the Credit Agreement shall cease to be a
party to the Credit Agreement.

            (6) This Assignment and Acceptance shall be governed by, and
construed in accordance with, the laws of the State of New York.

            (7) This Assignment and Acceptance may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement. Delivery of an executed
counterpart of this Assignment and Acceptance by telecopier shall be effective
as delivery of an original executed counterpart of this Assignment and
Acceptance.

            IN WITNESS WHEREOF, each Assignor and each Assignee have caused
Schedule 1 to this Assignment and Acceptance to be executed by their officers
thereunto duly authorized as of the date specified thereon.

                                       C-2
<PAGE>

                                   SCHEDULE 1
                                       TO
                            ASSIGNMENT AND ACCEPTANCE

<TABLE>
<CAPTION>
<S>                                      <C>
ASSIGNOR:

      Percentage interest assigned                 100 %
      Outstanding principal amount of
          Advance assigned               $ 150,000,000

ASSIGNEE:

      Percentage interest assumed                  100 %
      Outstanding principal amount of
          Advance assumed                $ 150,000,000
</TABLE>

Effective Date:

__________ ___, _____

                                  ASSIGNOR

                                         _________________________, as Assignor
                                         [Type or print legal name of Assignor]

                                         By ______________________________
                                            Title:

                                         Dated:  _________ __, ____

                                  ASSIGNEE

                                         _________________________, as Assignee
                                         [Type or print legal name of Assignee]

                                         By ______________________________
                                            Title:

                                         Dated:  _________ __, ____

<PAGE>

                ENGLISH TRANSLATION OF ORIGINAL SPANISH VERSION

                                                                     EXHIBIT B-2

                                                     ACKNOWLEDGMENT OF DEBT FORM

                                           City of Buenos Aires, [__] [__], 2005

With this document, CERVECERIA Y MALTERIA QUILMES S.A.I.C.A. Y G. (the "Debtor")
ACKNOWLEDGES ITS DEBT to [_____], whose address is [_______] (the " Creditor"),
on the basis of the [Loan Agreement in Dollars] executed by the Debtor and the
Creditor dated [__] [____], 2005 ( the "Loan Agreement") in the amount in United
States dollars of [USD__________ (United States dollars[_____])] (the
"Capital"), which will accrue compensatory interest and penalties, and will be
payable according to the terms and conditions below:

1.    The Capital will be amortized in 5 (five) annual payments that are equal
and consecutive, with payments beginning on [___] [___], [____] and ending on
[___] [___], [____] (the "Capital Payment Dates").

2.    In addition, the Capital will accrue interest at a nominal annual rate
equivalent to [__]% starting from the date of the execution of this
Acknowledgement of Debt (the "Compensatory Interest").

            2.1   The Compensatory Interest will be paid on the [___], [___] and
      [____] days of each year, with the payments beginning on [___] [___],
      [____] and ending on [___] [___], [____] (the "Interest Payment Dates,"
      and, together with the Capital Payment Dates, the "Payment Dates").

            2.2   The Compensatory Interest will be calculated and computed on
      the basis of a year of 360 (three hundred sixty) days, with 12 (twelve)
      months of 30 (thirty) days each.

3.    In the event that the Debtor fails to make any single payment of capital
and/or interest as provided in this Acknowledgment of Debt, starting from the
date upon which the payment should have been made to the actual payment date,
those due and unpaid amounts will be subject to a penalty interest, in addition
to the Compensatory Interest, equivalent to [1%] (one percent) annually (the
"Penalty Interest"). Such Penalty Interest will be due and payable on each
Payment Date subsequent to the default unless the latter has been discharged
previously.

4.    All the amounts owed by the Debtor on the basis of this Acknowledgment of
Debt must be paid exclusively in United States dollar currency. If, at the
Payment Date, there exists any restriction or prohibition of access to the
Exchange Market of the Republic of Argentina for payment of the amounts owed
pursuant to this document in United States

<PAGE>

dollars, the Debtor may, on that Payment Date, pay any amount owed on that date
in pesos (or the currency that is current legal tender in the Republic of
Argentina at that time) by means of converting the particular amount owed in
United States dollars into pesos so that the resulting amount is sufficient to
cover any amount owed in United States dollars on that Payment Date.

All taxes, costs, commissions and expenses related to the conversion described
above must be the sole and exclusive responsibility of the Debtor. The payment
obligations of the Debtor established in this Acknowledgment of Debt will be
deemed discharged only upon the receipt by the Creditor of United States dollars
sufficient to pay the amounts owed according to the provisions of this
Acknowledgment of Debt, obtained by means of the transaction described.

5.    The execution of this Acknowledgment of Debt does not represent release,
grace period, novation or any other condition that makes it possible to assume
that there is any waiver or reduction, total or partial, on the part of the
Creditor of its rights and/or guarantees and any other right that arises from
the Loan Agreement.

6.    The payments detailed herein will be made on the dates specified, by means
of a bank transfer to bank account [________] in the name of [______], or to the
account that [______] may indicate in writing to the Debtor in the future.

7.    The Debtor's failure to pay any amount is an automatic event of default,
giving the Creditor, without the need of any judicial or extrajudicial
intervention, the right to consider the total debt described in the heading of
this Debt Acknowledgment as due, making it possible to demand the total of the
debt plus the Compensatory Interest and the Penalty Interest that may apply up
to the date of the final payment, in addition to legal fees, costs, court costs
and other expenses that arise, as well as the payment of any other amount that,
for any cause or reason, should be paid or delivered to the Creditor on the
basis of this Acknowledgment of Debt, and, as a result, may execute this
Acknowledgment of Debt starting at the time of the Debtor's default.

8.    The terms established for the amortization of the Capital, as described in
this document, will be considered to have expired and terminated and will be
accelerated, with the results described in paragraph 8 above, in the event of
any breach of the provisions of Clause [5.01] of the Loan Agreement.

9.    All amounts owed under this Agreement will be paid free of any deductions
for taxes, assessments, expenses, duties or withholding, present or future, of
any nature or type, and taxes for any tax collection authority of the Republic
of Argentina or any other jurisdiction in which the Debtor is established for
tax purposes or where the payments under this Agreement must be made. Such
taxes, assessments, expenses, duties or withholding, if applicable, must be paid
exclusively by, and will be the sole responsibility of, the Debtor.

10.   The Debtor declares that its legal address is [___________].

<PAGE>

11.   This Acknowledgment of Debt is considered to grant the Creditor, in any
event, the right to executory action as provided in Articles 520, 523 and
corresponding articles of the Civil and Commercial Procedural Code of Argentina.

12.   This Agreement will be governed by the laws of the Republic of Argentina.
The Debtor, for all legal purposes relating to this document, submits itself
irrevocably, in a binding manner and unconditionally, to the jurisdiction and
authority of the Ordinary Commercial Courts of the City of Buenos Aires, waiving
any other forum or jurisdiction to which it may be entitled.

13.   All notices that must be sent to the Debtor, whether judicial or
extrajudicial, will be sent to the legal address provided by it herein, which
may not be modified outside of the jurisdiction of the Federal Capital. It
should be noted that any change of address must be communicated to the Creditor
promptly and in a reliable form, and it is deemed notified at the address
established herein.

14.   This declaration and commitment by the Debtor is irrevocable and is
considered accepted by the Creditor.

15.   This document is signed by the Debtor before a duly registered public
notary, who (i) certifies the signature of the signatory to this document, as
well as his legal power to execute it; and (ii) records this certificate in his
notarial record book, for the purposes of constituting this document as
executable pursuant to Article 523, paragraph 2 of the Civil and Commercial
Procedural Code of Argentina.

CERVECERIA Y MALTERIA QUILMES S.A.I.C.A. Y G.

BY: _____________________
TITLE:
NAME:
DOCUMENT:
ADDRESS:<PAGE>
                                                                    Exhibit 4.10

                                CREDIT AGREEMENT

                                   L67,000,000

                            DATED 16th December 2003

                          RIVERBANK HOTEL HOLDING B.V.
                                   as Borrower

                                     - and -

                               BANK HAPOALIM B.M.
                       (acting through its London branch)
                                     as Bank

                               HERZOG FOX & NEEMAN
                          ASIA HOUSE, 4 WEIZMANN STREET
                                TEL-AVIV, ISRAEL
                                TEL: 03 692 2020
                                FAX: 03 696 6464

<PAGE>

THIS CREDIT AGREEMENT is made on the 16th day of December 2003,

BETWEEN:

(1)  RIVERBANK HOTEL HOLDING B.V., a limited liability company organised and
     existing under the laws of The Netherlands, with registered office at
     Dufaystraat 5-hs, 1075GR Amsterdam, The Netherlands (the "BORROWER"); and

(2)  BANK HAPOALIM B.M., a banking corporation incorporated in the State of
     Israel, acting for the time being through its London branch at 8/12
     Brook Street, London, W1Y 1AA, as bank (the "BANK").

RECITALS:

(A)  The Borrower and the Bank entered into a term loan agreement on 1 April,
     2003 and, thereafter, the Bank has extended additional financing by way of
     amendment of that agreement. This agreement amends and restates the terms
     of that agreement in their entirety.

(B)  The Bank have agreed to make available to the Borrower a credit facility
     for the purposes set out in Section 3 (Purpose) upon and subject to the
     terms and conditions contained in this Agreement; and

(C)  The Borrower wishes to accept the credit facility upon and subject to the
     terms and conditions contained in this Agreement.

(D)  This Agreement is deemed to constitute an amendment within the meaning of
     paragraph 3 of Chapter 2 of the Charge over Shares dated 1 April 2002 which
     the parties acknowledge serves as security for this Agreement. Furthermore,
     the Debenture (in accordance with its terms) continues to serve as security
     for this Agreement.

IT IS AGREED as follows:

1.   DEFINITIONS AND INTERPRETATION

1.1  DEFINITIONS

     In this Agreement, the following terms shall have the following meanings:

      ACCOUNTS           Each of the bank accounts required to be opened and
                         maintained by the Borrower pursuant to Section 19
                         (Accounts).

      ADDITIONAL COSTS   In relation to any period, the rate calculated for such
      RATE               period by application of the formula set out in
                         Schedule 2.

      ADVANCE            The principal amount of each borrowing under this
                         Agreement.

      ADVANCE REQUEST    A request for the making of an Advance in
                         accordance with Section

                                        1
<PAGE>
                         5.2 (Advance Requests and Drawdown).

      AGREEMENT          This Credit Agreement.

      A LOAN             The loan having a principal maximum amount of up
                         to L62,000,000 (sixty two million pounds sterling) plus
                         the aggregate principal amount of all Deferred Interest
                         Advances made during the A Loan Availability Period.

      A LOAN             The period commencing on the date of Financial Close
      AVAILABILITY       and ending on the earlier of:
      PERIOD

                         (a)   the date of Project Completion;

                         (b)   the fourth (4th) anniversary of the Term Sheet
                               Date; and

                         (c)   the date on which the A Loan is fully drawn,
                               cancelled or terminated pursuant to the terms of
                               this agreement.

      A LOAN INTEREST    The rate of interest payable on the A Loan from time
      RATE               to time in accordance with Section 8 (Interest).

      A LOAN MARGIN      One and four-tenths of one percent (1.4%).

      A LOAN REPAYMENT   The earlier of:

      DATE

                         (a)    the fifth (5th) anniversary of the Term Sheet
                                Date; and

                         (b)    the Economic Completion Date.

      APPLICABLE LAW     Any applicable:

                         (a)    national (or state) constitution, treaty,
                                statute, code, law, by-law, legislation,
                                regulation, ordinance, rule, judgement, rule of
                                law, official order, judicial order, writ,
                                decree, request, approval, concession, grant,
                                franchise, licence, directive, guideline,
                                policy, standard, plan requirement or
                                restriction of any legally constituted public
                                authority; and

                         (b)    decision of, or determination by, or any
                                interpretation or administration of any of the
                                foregoing (whether or not having the force of
                                law) of any governmental authority;

                         whether in effect as of the date hereof or thereafter
                         and in each case as amended, re-enacted or replaced.

      APPROVED COSTS     These costs to be incurred by the Borrower in
                         connection with the Project and authorised by the Bank
                         in accordance with the terms of this Agreement.

                                       2
<PAGE>
      ARCHES             Arches numbered 122 to 128A Black Prince Road, Vauxhall
                         the subject of a lease dated 31 March 2000 between
                         Railtrack Plc and MC Parking Limited (as varied by a
                         deed of variation of the Lease dated 8 May 2003) which
                         has been assigned to the Borrower.

      AUDITORS           Mazars PaardeKooper Hoffman of Mazars Tower,
                         Delflandlaand, Amsterdam, The Netherlands

      B LOAN             The Loan having a principal maximum amount of up
                         to sixty seven million pounds L67,000,000, equal to the
                         outstanding amount of the A Loan on the date of the
                         Advance of the B Loan.

      B LOAN INTEREST    The rate of interest payable on the B Loan from time to
      RATE               time in accordance with Section 8 (Interest).

      B LOAN MARGIN      One and one-tenth of one percent (1.1%)

      BANK'S INSURANCE   Risk Management Consultants Ltd., or such other
      CONSULTANT         replacement insurance consultant as may be appointed by
                         the Bank.

      BANK'S PROJECT     Gardiner & Theobold, or such other replacement
      MONITOR            technical adviser as may be appointed by the Bank.

      BORROWER CHARGE    The charge over each of the Accounts of the Borrower in
      OVER ACCOUNTS      favour of the Bank dated the date hereof, in the form
                         of Schedule 4 hereto.

      BUSINESS DAY       A day (other than a Saturday or Sunday) on which
                         banks are open for business in London.

      CHARGES OVER       (a)   the Borrower Charge over Accounts; and
      ACCOUNTS

                         (b)   the Operator Charge over Accounts.

      CHARGES OVER       (a)   The charges over shares dated 1 April 2002
      SHARES                   granted by the Shareholders in favour of the Bank
                               in respect of their shares in the Borrower, and

                         (b)   the charges over shares dated the date of this
                               agreement granted by the Borrower in favour of
                               the Bank in respect of its shares in the
                               Operator, in the form of Schedule 3 hereto.

      COLLATERAL         The assets subject to the Security Interests created by
                         the Security Documents.

      COLLATERAL         The duty of care warranties in favour of the Bank from:
      WARRANTIES

                         (a)   the Contractor;

                                       3
<PAGE>
                         (b)   such sub-contractors of the Contractor as the
                               Bank may require; and

                         (c)   each member of the Professional Team as the Bank
                               may require,

                         in each case in form and substance acceptable to the
                         Bank.

      COMPLETION AND     The guarantee dated the date of this agreement executed
      COST OVERRUN       by the Guarantors in favour of the Bank, in the form of
      GUARANTEE          Schedule 8 hereto.

      CONSTRUCTION       The agreement dated [               ] between the
      AGREEMENT          Borrower and the Contractor.

      CONSTRUCTION       The period from the date of the Initial Advance until
      PERIOD             Project Completion Date.

      CONSTRUCTION       The budget for the Construction Period submitted to the
      PERIOD BUDGET      Bank by the Borrower, as amended from time to time by
                         the Borrower with the consent of the Bank.

      CONSTRUCTION       The works to be performed pursuant to the Construction
      WORKS              Agreement.

      CONTRACTOR         Gear Construction Management Ltd., a company organized
                         and existing under the laws of England and Wales, with
                         registered office at 10 Albert Embankment, London, SE1
                         7SP.

      DEBENTURE          The debenture dated 1 April,2003 granted by the
                         Borrower in favour of the Bank, in the form of
                         Schedule 6.

      DEBT SERVICE       In respect of a period, the aggregate amount of:

                         (a)  all Financing Costs accrued or to be accrued
                              during that period; and

                         (b)  all repayments and/or prepayments of Financing
                              Principal that fall due during that period.

      DEBT SERVICE       In respect of any period, the ratio of A:B where:
      COVER RATIO

                         A    Operating Profit for that period; and

                         B    Debt Service for that period.

      DEBT SERVICE       The bank account required to be opened and maintained
      RESERVE ACCOUNT    by the Borrower pursuant to Section 19 (Accounts).

                                       4
<PAGE>
      DEFAULT            An Event of Default or a Potential Default.

      DEFAULT RATE       As defined in Section 8.4 (Default Interest).

      DEFERRED INTEREST  The Advances provided for the purposes of
      ADVANCES           capitalisation of interest in accordance with Section
                         8.6(a) (Capitalisation of Interest).

      DIRECT AGREEMENT   The direct agreement to be entered into between the
                         Operator, the Borrower, the Bank and the Management
                         Company.

      DRAWDOWN DATE      In relation to any Advance, the date on which the
                         Advance is actually made.

      ECONOMIC           The Bank being satisfied that:
      COMPLETION

                         (a)  for the previous 12 months (or such other period
                              as the Bank may determine) preceding the date of
                              calculation, the RevPar at the Hotel averaged at
                              least L74.50 (seventy four pounds and fifty pence
                              only); and

                         (b)  the Debt Service Cover Ratio for the previous 12
                              months (or such other period as the Bank may
                              determine) preceding the date of calculation, was
                              at least 1.2:1.

      ECONOMIC           The date of the notice of the Auditor's addressed to
      COMPLETION DATE    the Bank, confirming that Economic Completion has taken
                         place.

      ECONOMIC           The fifth (5th) anniversary of the Term Sheet Date.
      COMPLETION
      DEADLINE

      ELSCINT            Elscint Limited, a company incorporated in the State of
                         Israel with registered number 52-003883-7 with
                         registered office at 13 Moses Street, Tel Aviv, 67442,
                         Israel.

      ENVIRONMENTAL      Any administrative, regulatory or judicial action,
      CLAIM              suit, demand letter, claim, Security Interest, notice
                         of non-compliance or violation or investigation or
                         proceeding conducted or initiated by any Person as a
                         result of, under or in connection with any violation of
                         Environmental Law.

      ENVIRONMENTAL LAW  All Applicable Laws concerning health, safety,
                         bio-diversity, dangerous substances or matters related
                         to pollution or protection of the environment.

      ENVIRONMENTAL      All licences and approvals required under any
      LICENCE            Environmental Law.

      EQUITY             Each of:

                                       5
<PAGE>
                         (a)  the share capital of the Borrower; and

                         (b)  the Shareholders Loans.

      EQUITY DOCUMENT    Each of:

                         (a)  the Shareholders Loan Agreements; and

                         (b)  the Subordination Agreement.

      EVENT OF DEFAULT   As defined in Section 20 (Defaults).

      EXISTING LOAN      The loan made by the Bank to the Borrower pursuant
                         to the Original Loan Agreement in an aggregate amount
                         (including capitalized interest) of L35,415,319.26
                         (thirty five million four hundred and fifteen three
                         hundred and nineteen pounds and twenty six pence).

      FACILITY           The credit facility denominated in pounds Sterling to
                         be made available to the Borrower in accordance with
                         the terms of this Agreement.

      FACILITY GUARANTEE a facility guarantee issued by the Bank to a
                         third party pursuant to Section 10 (LCS and Facility
                         Guarantees), in a form and substance satisfactory to
                         the Bank.

      FACILITY OFFICE    The London branch of the Bank or such other
                         office as the Bank may designate by written notice to
                         the Borrower as being the office through which the Bank
                         will perform any or all of its obligations under this
                         Agreement.

      FINAL MATURITY     The date falling ten (10) years after the Economic
      DATE               Completion Date.

      FINANCE DOCUMENTS  Each of:

                         (a)  this Agreement;

                         (b)  each Security Document;

                         (c)  each Equity Document; and

                         (d)  any other document designated as such by the Bank.

      FINANCIAL CLOSE    The date on which all of the conditions precedent
                         to the Initial Advance (as set out in Section 4
                         (Conditions Precedent) have been fulfilled or waived by
                         the Bank in writing, which shall be no later

                                       6
<PAGE>
                         than 31 December, 2003.

      FINANCIAL          Any indebtedness in respect of:
      INDEBTEDNESS

                         (a)  moneys borrowed or debit balances at banks and
                              other financial institutions;

                         (b)  any debenture, bond, note, loan stock or other
                              security;

                         (c)  any acceptance or documentary credit;

                         (d)  receivables sold or discounted (otherwise than on
                              a non-recourse basis);

                         (e)  the acquisition cost of any asset to the extent
                              payable before or after the time of acquisition or
                              possession by the party liable where the advance
                              or deferred payment is arranged primarily as a
                              method of raising finance or financing the
                              acquisition of that asset;

                         (f)  any lease entered into primarily as a method of
                              raising finance or financing the acquisition of
                              the asset leased;

                         (g)  any currency swap or interest swap, cap or collar
                              arrangement or any other derivative instrument;

                         (h)  any amount raised under any other transaction
                              having the commercial effect of a borrowing or
                              raising of money; or

                         (i)  any guarantee, indemnity or similar assurance
                              against financial loss of any person.

      FINANCING COSTS    (a)  interest, fees, commissions and costs payable by
                              the Borrower under this Agreement;

                         (b)  amounts ascertained as being payable by the
                              Borrower under Section 12 (Taxes), Section 13
                              (Market Disruption), Section 14 (Increased Costs),
                              Section 23 (Stamp Duties) and Section 24
                              (Indemnities) of this Agreement; and

                         (c)  any Taxes payable by the Borrower in respect of
                              the above,

                         but excluding Financing Principal.

      FINANCING          Principal amounts outstanding under this Agreement.
      PRINCIPAL

      FIRST INTEREST     The earlier of the first Quarter Date falling after the
      PAYMENT DATE       three (3) month anniversary of

                                       7
<PAGE>
                         (a)   the date of Practical Completion; or

                         (b)   the third anniversary of the Term Sheet Date.

      FURTHER            The further conditions precedent specified in Section
      CONDITIONS         4.2 (Further Conditions Precedent).
      PRECEDENT

      GOOD INDUSTRY      The exercise of that degree of skill, diligence,
      PRACTICE           prudence and foresight which would reasonably and
                         ordinarily be expected from a skilled and experienced
                         person engaged in the same type of undertaking under
                         the same or similar circumstances.

      GOVERNMENTAL       Any government, governmental department, ministry,
      AUTHORITY          cabinet, commission, board, bureau, agency, tribunal,
                         regulatory authority, instrumentality, judicial,
                         legislative or administrative body or entity, domestic
                         or foreign, federal, national, state, regional,
                         provincial or local, having or exercising jurisdiction
                         over the matter or matters in question.

      GUARANTEE          The several guarantees dated the date of this agreement
                         executed by:

                         (a)   the Red Sea Guarantors, jointly and severally;
                               and

                         (b)   Elscint,

                         each, in favour of the Bank, in respect of seven and
                         one-tenth of one per cent (7.1%) of the total
                         outstanding amounts (whether Financing Principal or
                         Financing Costs) pursuant to this Agreement.

      GUARANTORS         Each of the Red Sea Guarantors and Elscint.

      HOTEL              All that property and building known, or to be known,
                         as the Riverbank Park Plaza Hotel

      HOTEL MANAGEMENT   The undertaking given by Park Plaza Europe Limited to
      UNDERTAKING        the Borrower, dated the date hereof.

      INITIAL ADVANCE    The first Advance to be made by the Bank.

      INSURANCE PROCEEDS All proceeds of Insurances or Additional Insurances
                         including proceeds in respect of liabilities
                         arising under any of the Project Documents whether by
                         way of claims, adjustments thereof, return of premiums
                         or otherwise.

      INSURANCE          The account to be opened by the Borrower and maintained
      PROCEEDS ACCOUNT   in accordance with Section 19 (Accounts).

                                       8
<PAGE>
      INSURANCE          A letter to be entered into by the Borrower and the
      PROCEEDS LETTER    Bank, to the satisfaction of the Bank, setting out the
                         procedure for distribution of Insurance Proceeds.

      INSURANCES         All contracts and policies of insurance and
                         re-insurance of any kind which are required to be taken
                         out by, or on behalf of or for the benefit of the
                         Borrower in accordance with the Project Documents and
                         the Finance Documents or in which the Borrower has an
                         interest.

      INTELLECTUAL       All intellectual property rights, whether or not
      PROPERTY RIGHTS    patentable, including without limitation, rights in
                         algorithms, binary code, brands, business methods,
                         computer programs, computer software, concepts,
                         confidential information, firmware, composition of
                         matter or materials, certification marks, collective
                         marks, copyright, customer lists, data, databases,
                         designs (whether registered or unregistered),
                         derivative works, discoveries, distributor lists,
                         documents, domain names, file layouts, formulae,
                         goodwill, ideas, improvements, industrial designs,
                         information, innovations, inventions, integrated
                         circuits, know-how, logos, manufacturing information,
                         mask works, materials, methods, moral rights, object
                         code, original works of authorship, patents, patent
                         applications, patent rights, including but not limited
                         to any and all continuations, divisions, reissues,
                         re-examinations or extensions, plans, processes,
                         proprietary technology, reputation, research results,
                         research records, semiconductor chips, service marks,
                         software, source code, specifications, statistical
                         models, supplier lists, systems, techniques,
                         technology, trade secrets, trademarks, trade dress,
                         trade names, trade styles, and technical information,
                         and any rights analogous to the foregoing.

      INTEREST DUE DATE  The last day of any Interest Period on which
                         date interest is payable by the Borrower to the Bank
                         pursuant to Section 9 (Interest Periods).

      INTEREST PERIOD    As determined in accordance with Section 9
                         (Interest Periods).

      LC                 Any letter of credit issued or to be issued by the Bank
                         to a third party pursuant to Section 10 (LCS and
                         Facility Guarantees), such letter of credit to be in a
                         form satisfactory to the Bank.

      LEASE              The lease agreement over the site to be entered into
                         between the Borrower and the Operator, in form and
                         substance acceptable to the Bank.

                                       9
<PAGE>
      LIBOR              In respect of any Interest Period means the rate
                         displayed as of 11 a.m. London time on the second
                         Business Day before the first day of that Interest
                         Period on the FRBD page of the Reuter Monitor Money
                         Rates Service (or such other page or service as may
                         replace it) as being the interest rate offered in the
                         Inter-bank Market for Sterling deposits for the same
                         period as the relevant Interest Period (or if the
                         periods are not the same, such period, if any, as the
                         Lender determines to be substantially the same) but if
                         no such offered quotation appears, the relevant rate
                         shall be determined on the basis of the respective
                         rates (as quoted to the Lender at its request) at which
                         each Reference Bank is offering Sterling deposits for
                         the relevant currency for the relevant Interest Period
                         to prime banks in the Inter-bank Market at or about 11
                         a.m., on the second Business Day before the first day
                         of the relevant Interest Period.

      LOAN ACCOUNT       The bank account required to be opened and
                         maintained by the Borrower pursuant to Section 19
                         (Accounts).

      MANAGEMENT COMPANY Park Plaza Hotel Europe Limited or such other
                         hotel management company as shall be approved by the
                         Bank in accordance with Section 20.20.

      MATERIAL ADVERSE   Any effect which in the opinion of the Bank:
      EFFECT

                         (a)  is or is likely to be materially adverse to the
                              ability of the Borrower or any other Obligor to
                              perform or comply with any of its material
                              obligations under the Transaction Documents in a
                              timely manner; or

                         (b)  is or is likely to be materially prejudicial to:

                              (i)    the interests of the Finance Parties under
                                     the Finance Documents;

                              (ii)   the business, operations or financial
                                     condition of the Borrower or any other
                                     Obligor;

                              (iii)  the validity or enforceability of any of
                                     the Transaction Documents; or

                              (iv)   the implementation or operation of the
                                     Project or the consummation of the
                                     transactions contemplated by the
                                     Transaction Documents.

      OBLIGOR            (a)  the Borrower;

                         (b)  each Shareholder (other than Park Plaza Hotels
                              Europe Limited)

                                       10
<PAGE>
                         (c)  each Guarantor; and

                         (d)  the Operator.

      OPERATING ACCOUNT  Means the account to be opened by the Operator
                         and maintained in accordance with Section 19
                         (Accounts).

      OPERATING BUDGET   The budget for the Operating Period submitted to
                         the Bank by the Borrower, as amended from time to time
                         by the Borrower with the consent of the Bank.

      OPERATING PERIOD   The period from the date of commencement of
                         commercial operation of the Hotel until the Final
                         Maturity Date.

      OPERATING PROFIT   The combined gross operating profit of the
                         Operator (or such other party as shall operate the
                         Hotel) before tax, plus:

                         (a) amortisation and depreciation; and

                         (b) rent paid by the Operator to the Borrower pursuant
                             to the lease of the Hotel,

                         calculated, in each case, in accordance with GAAP and:

                         1.  in the case of a calculation with respect to a year
                             ending on 30 June in any year, as shown in the two
                             sets of half yearly financial statements relating
                             to that year delivered to the Bank pursuant to this
                             Agreement and with reference to the hotel operating
                             accounts of the Operator for such period supplied
                             pursuant to this Agreement.

                         2.  in the case of a calculation with respect to a year
                             ending on 31 December in any year, as shown in the
                             financial statements relating to that year
                             delivered to the Bank pursuant to and with
                             reference to the hotel operating accounts of the
                             Operator for such period supplied pursuant to this
                             Agreement.

      OPERATOR           Almaren Limited, a company organised and existing under
                         the laws of England and Wales, with company number
                         4974811 to be known as Riverbank Hotel Operator
                         Limited.

      OPERATOR CHARGE    The charge over the Operating Account to be granted by
      OVER ACCOUNTS      the Operator in favour of the Bank, in the form of
                         Schedule 5 hereto.

      ORIGINAL LOAN      The term loan agreement entered into by the Borrower
      AGREEMENT          and the Bank on 1 April, 2003, as amended from time to
                         time.

      OUTSTANDING        In relation to any LC or Facility Guarantee, the amount
                         stated in

                                       11
<PAGE>
      LIABILITY AMOUNT   such documents to be the maximum amount for which the
                         Bank could be actually or contingently liable
                         thereunder which, if not denominated in Sterling, shall
                         be (for the purposes of this definition) converted into
                         Sterling on the basis of the Bank's Spot Rate of
                         Exchange two (2) days prior to issuance of such LC or
                         Facility Guarantee.

      PARTY              A party to this Agreement.

      PERMITTED          (a)   any indebtedness arising under the Shareholder
      INDEBTEDNESS             Loan Agreements provided such indebtedness is
                               subject to the terms of the Subordinated Loan
                               Agreements;

                         (b)   indebtedness not exceeding one million pounds
                               Sterling (L1,000,000) in the aggregate at any
                               time, incurred by the Borrower or the Operator in
                               respect of its obligations under finance leases
                               entered into in relation to the acquisition of
                               furniture, fittings or other equipment for the
                               Hotel;

                         (c)   indebtedness incurred by the Operator to
                               suppliers in the ordinary course of operation of
                               the Hotel; and

                         (d)   any other indebtedness of the Borrower or the
                               Operator which is disclosed in writing to the
                               Bank by the Borrower, and so approved in writing
                               by the Bank.

      PERSON             Any individual, company, firm, trust, organisation,
                         corporation, state, political sub-division of a state,
                         local, municipal or other Governmental Authority,
                         association, joint venture or partnership (whether or
                         not having separate legal personality) and any
                         international organisation.

      PERMITTED          Any Security Interest over assets of the Borrower
      SECURITY INTERESTS arising solely by operation of law.

      POTENTIAL DEFAULT  Any event, act or condition which, with the giving of
                         any notice or the lapse of time or the satisfaction of
                         any other condition would constitute an Event of
                         Default.

      PRACTICAL          The earlier of:
      COMPLETION

                         (a)   six (6) months from the date of the first paying
                               guest utilising the Hotel; or

                         (b)   seventy five percent (75%) of rooms being
                               certified by the Bank's Project Monitor as being
                               available for commercial use.

      PROCEEDS ACCOUNT   The account to be opened by the Operator and
                         maintained in

                                       12
<PAGE>
                         accordance with Section 19 (Accounts).

      PROFESSIONAL       The letters of appointment by the Borrower of members
      APPOINTMENTS       of the Professional Team, in form and substance
                         satisfactory to the Bank.

      PROFESSIONAL TEAM  Those contractors, sub-contractors, consultants
                         and advisers set out in Schedule 13 hereto.

      PROJECT            The project for the design, construction, operation and
                         maintenance of the Hotel at 12-18 Albert Embankment,
                         London SE1, in accordance with the Project Documents.

      PROJECT ACCOUNT    The account to be opened by the Borrower and
                         maintained in accordance with Section 19 (Accounts).

      PROJECT COMPLETION (a)   The completion of the Project such
                               that the Bank's Project Monitor shall be
                               satisfied that:

                               (i)   the Project has been completed in all
                                     material respects in accordance with the
                                     Project Documents; and

                               (ii)  the Hotel comprises 396 "first class" rooms
                                     and 66 serviced apartments; and

                               (iii) the Bank is satisfied on the basis of the
                                     monthly operating reports that the rooms
                                     are available for use.

      PROJECT COSTS      All costs and expenses paid and to be paid by the
                         Borrower, including without limitation:

                         (a)  capital costs (including, purchase of all rights
                              in relation to the Site);

                         (b)  operating costs and expenses;

                         (c)  maintenance costs;

                         (d)  insurance premiums and other insurance related
                              payments;

                         (e)  administrative, management, legal, accounting and
                              employee costs;

                         (f)  Taxes required to be paid by the Borrower; and

                         (g)  fees and commissions payable to the Bank.

                                       13
<PAGE>
      PROJECT DOCUMENTS  Each of:

                         (a) the Construction Agreement;

                         (b)  the Operation and Maintenance Agreement;

                         (c)  the Professional Appointments;

                         (d)  the Collateral Warranties; and

                         (e)  any other document designated as such by the Bank.

      PROJECT PERMIT     All authorizations, consents, approvals, resolutions,
                         licences, exemptions, filings or registrations required
                         contractually, under any Applicable Law or otherwise to
                         enable the Borrower or any other Person to perform its
                         obligations under, or for the validity or
                         enforceability of, or in connection with the
                         consummation of the transactions contemplated by any
                         Transaction Document or otherwise necessary in order
                         for the Project to be implemented in accordance with
                         the terms of the Transaction Documents.

      QUARTER DATE       31 March, 30 June, 30 September and 31 December (as
                         applicable).

      RED SEA GUARANTORS (a)   Red Sea Club Limited, a company incorporated in
                               the State of Israel with registered number
                               51-073654-9 whose address is 8 Hasadnot Street,
                               Herzlyia Pituach 46728, Israel;

                         (b)   Atlantic Pacific Enterprises B.V., a company
                               incorporated in The Netherlands with registered
                               office at De Entree 11-13, 1101 BH Amsterdam
                               Zuidoost; and

                         (c)   Zilver-Berk B.V., a company incorporated in The
                               Netherlands with registered office at De Entree
                               11-13, 1101 BH Amsterdam Zuidoost,

                         jointly and severally.

      REPAYMENT          Each instalment for repayment of the Advances referred
      INSTALMENT         to in Section 6 (Repayment).

      REV PAR            The total of revenue from room income per total
                         available rooms for any given period, calculated by
                         multiplying average room rate achieved in the Hotel for
                         a given period by the average room occupancy rate at
                         the Hotel for that period.

      SECURITY           Each of:

                                       14
<PAGE>
      DOCUMENTS
                         (a)  the Charges over Shares;

                         (b)  the Charges over Accounts;

                         (c)  the Debenture;

                         (d)  the Guarantees;

                         (e)  the Completion and Cost Overrun Guarantee;

                         (f)  the Direct Agreement;

                         (g)  the Supplemental Debenture; and

                         (h)  any other document or instrument including,
                              without limitation, any document or instrument
                              evidencing, creating or perfecting or continuing
                              the perfection of any Security Interest over any
                              asset of the Borrower or any other Obligor to
                              secure any of the obligations of such Person under
                              any of the Transaction Documents including,
                              without limitation, the document to be entered
                              into creating a Security Interest in favour of the
                              Bank over the Lease.

      SECURITY INTEREST  Any mortgage, pledge, lien, charge, assignment,
                         hypothecation or security interest or any other
                         agreement or arrangement having the effect of
                         conferring security.

      SHAREHOLDERS       (a)   Euro Sea Hotels N.V. of De Entree 11-13 Toren A,
                               1101 BH Amsterdam Zuidoost, The Netherlands;

                         (b)   BEA Hotels N.V. Keizersgracht 239, 1016 EA
                               Amsterdam, The Netherlands; and

                         (c)   Park Plaza Hotels Europe Limited Tropic Isle
                               Building, Post Office Box 438, Road Town,
                               Tortola, British Virgin Islands.

      SHAREHOLDERS LOAN  The shareholders loans pursuant to the agreements
                         of 1 April 2003, between the Borrower and all further
                         loans to be provided by the Shareholders to the
                         Borrower.

      SHAREHOLDERS LOANS The shareholders loans provided to the Borrower
                         by the Shareholders pursuant to the Shareholders Loan
                         Agreements and in accordance with the Subordinated Loan
                         Agreements.

      SITE               (a)   All of that leasehold property known as
                               Queensborough House, Albert Embankment, SE1 as
                               registered at HM Land Registry under title number
                               TGL175396;

                                       15
<PAGE>
                         (b)   All of that leasehold property known as land at
                               Embankment Gardens in front of Queensborough
                               House, London, SE1 more particularly comprised in
                               a lease dated 14 February 2002 between The Mayor
                               and Burgess of the London Borough of Lambeth and
                               Albert Hotel Limited currently registered under
                               title number TGL200395; and

                         (c)   the Arches.

      STERLING, POUNDS   The lawful currency of the United Kingdom.
      STERLING or L

      SUBORDINATION      The subordination agreement dated 1 April 2003 between
      AGREEMENT          the Bank, the Borrower and each Shareholder, in the
                         form of Schedule 7 hereto.

      SUPPLEMENTAL       The debenture to be entered into by the Borrower
      DEBENTURE          pledging:

                         (a)   the Arches;

                         (b)   the Insurance Proceeds Account; and

                         (c)   the Debt Service Reserve Account,

                         in favour of the Bank.

      TERM SHEET DATE    27 August, 2002.

      TAX                All present and future income, value added and other
                         taxes, levies, imposts, deductions, charges and
                         withholdings in the nature of taxes (other than taxes
                         on the profits of the Bank) whatsoever together with
                         interest thereon and penalties with respect thereto, if
                         any, and any payments made on or in respect thereof.

      TRANSACTION        The Finance Documents and the Project Documents.
      DOCUMENTS

      WHOLESALE          The rate per annum, as determined from time to time by
      INTEREST RATE      the Bank, to be the basic rate - before the application
                         of any margin - at which the Bank is willing to grant
                         loans in Sterling for a similar term as the A Loan and
                         the B Loan (as appropriate).

1.2  INTERPRETATION

     In this Agreement, unless the contrary intention appears, a reference to:

     (a)    "AMENDMENT" includes a supplement, notation or re-enactment and
            "AMENDED" is to be construed accordingly;

                                       16
<PAGE>
            "ASSETS" includes every kind of property, asset, interest, revenue
            or right of every description, including any present, future or
            contingent right to any revenues;

            "MONTH" or a period of one or more "MONTHS" means a period beginning
            in one calendar month and ending in the relevant calendar month on
            the day numerically corresponding to the day of the calendar month
            in which such period started, provided that:

            (i)    if such period started on the last Business Day in a calendar
                   month, or if there is no such numerically corresponding day,
                   such period shall end on the last Business Day in the
                   relevant calendar month; and

            (ii)   if such numerically corresponding day is not a Business Day,
                   such period shall end on the next following Business Day in
                   the same calendar month or if there is no such Business Day,
                   such period shall end on the preceding Business Day;

            (and "MONTHLY" shall be construed accordingly); and

            a "REGULATION" includes any regulation, rule, requirement, official
            directive, request or guideline (whether general or specific) and
            whether or not having the force of law of or issued by any authority
            of any kind.

     (b)    a provision of law is a reference to that provision as amended or
            re-enacted;

     (c)    the Table of Contents to and the headings in this Agreement shall
            not affect the interpretation of this Agreement and all references
            to Sections, sub-Sections, Schedules, Appendices or Exhibits are to
            Sections and sub-Sections of, and Schedules, Appendices or Exhibits
            to, this Agreement;

     (d)    words and defined terms denoting the singular number include the
            plural and vice versa;

     (e)    references to, or to a provision of, a document are references to it
            as amended or supplemented before or after the date of this
            Agreement but where this Agreement requires the prior consent of the
            Bank or the Borrower in connection with any such amendment or
            supplement, this sub-Section shall not affect such requirement;

     (f)    subject to the terms of this Agreement, any reference in this
            Agreement to the Bank or the Borrower shall include their respective
            successors and assigns;

     (g)    a time of day is a reference to London time; and

     (h)    the Schedules and Exhibits form an integral part of this
            Agreement.

2.   FACILITY

                                       17
<PAGE>
2.1  FACILITY

     Subject to the terms of this Agreement, the Bank agree to make the Facility
     available to the Borrower in an aggregate amount of up to sixty seven
     million pounds sterling (L67,000,000), which shall, at no time, exceed
     seventy per cent (70%) of the total Project Cost.

2.2  AVAILABILITY

     The Facility shall be made available by way of:

     (a)    financing principal, including the issuance of LCS and Facility
            Guarantees (not exceeding L62,000,000 (sixty two million pounds
            sterling); and

     (b)    Deferred Interest Advances.

3.   PURPOSE

3.1  A LOAN

     The Borrower shall use the A Loan wholly and exclusively for the following
     purposes:

     (a)    first, towards full and final discharge of the Existing Loan and
            payment of fees pursuant to Section 21 (Fees); and

     (b)    thereafter, for financing Approved Costs incurred in connection
            with the Project.

3.2  B LOAN

     The Borrower shall use the B Loan for the sole purpose of repayment of the
     A Loan.

3.3  NO DUTY TO MONITOR

     Without affecting the obligations of the Borrower in any way, the Bank has
     no duty to verify or monitor the purpose for which, or the person to whom,
     sums so advanced are actually paid.

4.   CONDITIONS PRECEDENT AND CONDITIONS SUBSEQUENT

4.1  DOCUMENTARY CONDITIONS PRECEDENT

     The obligations of the Bank to the Borrower under this Agreement are
     subject to the condition precedent that the Bank has received originals, or
     where appropriate, certified copies of all of the documents set out in
     Schedule 1 (Condition Precedent Documents) in form and substance
     satisfactory to the Bank.

4.2  FURTHER CONDITIONS PRECEDENT

                                       18
<PAGE>
     The obligations of the Bank to make each Advance to the Borrower are
     subject to the fulfilment, at the time of the making of (and after giving
     effect to) each such Advance, of each of the following further conditions
     precedent to the satisfaction of the Bank unless waived in writing by the
     Bank:

     (a)    no Event of Default or Potential Default shall have occurred and
            be continuing or may result from the making of the requested
            Advance;

     (b)    the representations and warranties of the Borrower hereunder shall
            be true and correct as if each such representation and warranty was
            made as of the date of the requested Advance except where expressed
            to be made as of an earlier date;

     (c)    the requested Advance would not cause the total of the Facility
            to be exceeded; and

     (d)    evidence satisfactory to the Bank that sufficient equity funding has
            been provided by the Shareholders such that, following the provision
            of the Advance to the Borrower, the total amount outstanding under
            the Facility shall not exceed seventy per cent (70%) of the Project
            Costs incurred by that date;

     (e)    in connection with the requested Advance, the Bank shall have
            received an Advance Request from the Borrower in the form of
            Schedule 11 (Form of Advance Request) (together with all
            certificates and attachments thereto) by no later than five (5)
            Business Days prior to the date of the requested Advance;

     (f)    the Bank shall have received Collateral Warranties signed by all
            sub-contractors who:

            (i)   have undertaken Construction Works prior to the date of
                  the Advance Request; and

            (ii)  will be undertaking Construction Works which will be
                  funded (in whole or in part) by the requested Advance; and

     (g)    in respect of the Advance of the B Loan, the Economic Completion
            Date shall have occurred.

4.3  CONDITIONS SUBSEQUENT

     The Borrower shall ensure that the conditions subsequent set out in
     Schedule 1 Part 2 (Conditions Subsequent) are fulfilled to the satisfaction
     of the Bank within sixty (60) days of the date of this Agreement.

5.   DRAWDOWN

5.1  AVAILABILITY PERIOD

                                       19
<PAGE>
     Subject to the terms of this Agreement:

     (a)    A Loan Advances will be made to the Borrower on any Business Day
            during the A Loan Availability Period, provided that:

            (i)    on Financial Close the Initial Advance shall be drawn in an
                   amount equal, at least, to the Existing Loan plus fees due
                   and payable in accordance with Section 21 (Fees); and

            (ii)   the aggregate amount of all Advances of the A Loan shall
                   not exceed L62,000,000 (sixty two million pounds
                   sterling); and

     (b)    the B Loan Advance will be made to the Borrower only on the Economic
            Completion Date in an amount equal to the outstanding A Loan
            Advances on such date, provided that the Borrower shall have
            complied with the procedure set out in section 5.2 (Advance Requests
            and Drawdown).

5.2  ADVANCE REQUESTS AND DRAWDOWN

     (a)    The Borrower shall submit a duly completed Advance Request to the
            Bank in the form of Schedule 11 (Form of Advance Request) (together
            with all certificates and attachments thereto) by no later than 11
            am, at least five (5) Business Days prior to the requested date for
            the Advance, specifying, inter alia:

            (i)    the requested date for the Advance, being a Business Day
                   during the Availability Period;

            (ii)   the purpose of such borrowing (which must be permitted by
                   Section 3 (Purpose)) and, if more than one, the relative
                   amounts to be applied for each purpose;

            (iii)  the amount of the requested Advance which shall be a
                   minimum of L500,000;

            (iv)   that all conditions precedent to the making of the Advance,
                   as set out in Sections 4.1 (Documentary Conditions Precedent)
                   and/or 4.2 (Further Conditions Precedent), as applicable,
                   shall be fully satisfied or waived, as of the relevant date;

            (v)    that the Bank's Project Monitor has confirmed:

                  (i)     that the Project Costs to be funded by the
                          requested Advance are supported by invoices and
                          that the Advance is required in order to meet these
                          costs;

                  (ii)    subject to Section 10.6 (Cancellation) on the basis of
                          Project Costs incurred to date and falling due in the
                          forthcoming

                                       20
<PAGE>
                          month according to the Construction Period
                          Budget, the total amount of all Advances (including
                          Deferred Interest Advances and the requested Advance)
                          does not exceed seventy per cent (70%) of such Project
                          Costs; and

                  (iii)   in the case of the requested issuance of an LC or
                          Facility Guarantee, that the liabilities to be secured
                          by such LC or Facility Guarantee have been properly
                          incurred by the Borrower in connection with the
                          Project.

     (b)    The Borrower may in an Advance Request, request the Bank to issue an
            LC or Facility Guarantee as part of the A Loan and the Bank will
            issue such LC or Facility Guarantee by delivering the same to, or to
            the order of, the beneficiary stated therein, provided that:

            (i)    the Bank will be under no obligation to issue an LC or
                   Facility Guarantee unless it approves the form and substance
                   of the relevant LC or Facility Guarantee and, for the
                   avoidance of doubt, no LC or Facility Guarantee will be
                   approved unless it has an expiry date which is on or before
                   the date which falls eighteen (18) months after the date of
                   this agreement;

            (ii)   the issue of each LC and Facility Guarantee shall, for so
                   long as they remain valid and outstanding, reduce the amount
                   available to be borrowed under the A Loan by the Outstanding
                   Liability Amount of such LC or Facility Guarantee; and

            (iii)  each issue of an LC or Facility Guarantee shall be subject to
                   payment by the Borrower to the Bank of commission standard at
                   the Bank for such LC or Facility Guarantee, which may be paid
                   by the Borrower by utilizing an Advance under the A Loan.

     (c)    Each Advance Request shall be irrevocable.

6.   REPAYMENT

6.1  A LOAN REPAYMENT

     The Borrower shall repay the full amount of the outstanding A Loan
     (together will all Financing Costs), in one payment on the A Loan Repayment
     Date.

6.2  B LOAN REPAYMENT

     The Borrower shall repay the B Loan in accordance with the repayment
     schedule attached as Schedule 9. This Schedule shall be updated by the Bank
     and delivered to the Borrower on the date of the Advance of the B Loan to
     reflect the repayments of the precise amount of such Advance.

                                       21
<PAGE>
6.3  LCS AND FACILITY GUARANTEES

     Any LC or Facility Guarantee in relation to which the Bank has made a
     payment, shall be repaid as part of the A Loan, in accordance with Section
     6.1 (A Loan Repayment).

7.   PREPAYMENT AND CANCELLATION

7.1  VOLUNTARY PREPAYMENT

     The Borrower may not prepay the Facility or any part thereof on or before
     the third anniversary of the date of Practical Completion (the "EARLIEST
     PREPAYMENT DATE") without obtaining the prior written consent of the Bank.
     Thereafter, the Borrower may prepay all or part of the A Loan or the B Loan
     on any Interest Payment Date, provided that:

     (a)    the Borrower shall have given to the Bank not less than thirty
            (30) days' prior written notice;

     (b)    the amount of any partial prepayment shall be at least one
            million pounds sterling (L1,000,000);

     (c)    all other sums then due and payable under this agreement shall
            have been paid; and

     (d)    the Bank shall otherwise be satisfied as to the terms on which
            the prepayment is made.

7.2  PREPAYMENT FEE

     In the event that the Borrower wishes to prepay all or any part of the A
     Loan or B Loan prior to the Earliest Prepayment Date, other than in
     accordance with Section 7.1 (Voluntary Prepayment) the Borrower will be
     required to pay the Bank an amount equal to three quarters of one percent
     (0.75%) per annum (or pro-rata for a part thereof) of the prepaid amount
     for the period from the date of prepayment until the third anniversary of
     the date of Practical Completion.

7.3  MANDATORY PREPAYMENT

     (a)    Upon the occurrence of a Prepayment Event, the Borrower shall, upon
            the last day of the Interest Period during which the Prepayment
            Event occurs, prepay the Advances.

     (b)    For the purposes of this Section 7.3 (Mandatory Prepayment) the term
            "PREPAYMENT EVENT" shall mean the occurrence of any of the
            circumstances requiring the Borrower to prepay any amounts in
            accordance with Section 15 (Illegality).

     (c)    Section 7.2 (Prepayment Fee) shall not apply to prepayments in
            accordance with this Section 7.3 (Mandatory Prepayment).

                                       22
<PAGE>
7.4  MISCELLANEOUS PROVISIONS

     (a)    Any prepayments under this Agreement shall be made together with
            accrued interest and all other amounts accrued and payable hereunder
            (including, without limitation, pursuant to Section 24
            (Indemnities)).

     (b)    Any notice of prepayment provided by the Borrower shall be
            irrevocable and shall specify the date fixed for prepayment, the
            aggregate principal amount of the Advances and the interest thereon
            and the Borrower's calculation of accrued interest and all other
            amounts (including, without limitation, pursuant to Section 24
            (Indemnities)) to be paid on the prepayment date.

     (c)    No prepayment or repayment is permitted except in accordance with
            the express terms of this Agreement.

     (d)    No amount prepaid under this Agreement may subsequently be
            re-borrowed.

     (e)    Any prepayment shall be applied against the Repayment Instalments in
            inverse order of maturity.

     (f)    The provisions of this Section 7.4 (Miscellaneous Provisions) shall
            apply to all prepayments under this Agreement, including pursuant to
            Sections 14 (Increased Costs) and 15 (Illegality).

8.   INTEREST

8.1  RATE OF INTEREST ON A LOAN

     The rate of interest on each Advance in respect of the A Loan, for each
     Interest Period, will be calculated as:

     (a)    the Wholesale Interest Rate;

     (b)    the A Loan Margin; and

     (c)    the Additional Cost Rate applicable to such Advance,

     provided that, the rate of interest on each Advance in respect of the A
     Loan shall in no event be less than the interest rate equal to LIBOR plus
     two and two-tenths of one per cent (2.2%).

8.2  RATE OF INTEREST ON B LOAN

     The rate of interest on the Advance in respect of the B Loan, for each
     Interest Period, will be calculated as:

     (a)    the Wholesale Interest Rate,

                                       23
<PAGE>
     (b)    the B Loan Margin; and

     (c)    the Additional Cost Rate applicable to such Advance,

     provided that, the rate of interest on the Advance in respect of the B Loan
     shall in no event be less than the interest rate equal to LIBOR plus one
     and eighty-five hundredths on one per cent (1.85%).

8.3  CALCULATIONS AND DUE DATES

     (a)    The Borrower shall pay interest on each Advance in arrears on each
            Interest Due Date in respect of such Advance.

     (b)    Interest shall accrue from day to day and shall be calculated on the
            basis of the actual number of days elapsed and a year of 360 days.

8.4  DEFAULT INTEREST

     (a)    If the Borrower fails to pay when due any amount payable by it
            hereunder, it shall forthwith on demand by the Bank pay interest on
            the overdue amount from the due date up to the date of actual
            payment (after as well as before judgment) at the rate determined by
            the Bank to be two (2) % per annum above the interest rate specified
            in Section 8.1 (Rate of Interest on A Loan) or Section 8.2 (Rate of
            Interest or B Loan), as applicable.

     (b)    The default rate will be determined by the Bank on each Business Day
            of the period in respect of which the default interest is payable.

     (c)    Interest payable under this Section 8.4 (Default interest) shall be
            calculated on the basis of the actual number of days elapsed and a
            360 day year and shall accrue from day to day. Such interest shall
            be capitalised on a weekly basis.

8.5  NOTIFICATION

     The Bank shall promptly notify the Borrower of the determination of each
     rate of interest under this Agreement.

8.6  CAPITALISATION OF INTEREST

     (a)    Notwithstanding Section 8.3 (Calculations and Due dates), prior to
            the First Interest Payment Date, interest on each Advance shall be
            capitalised on the relevant Interest Due Dates and shall be advanced
            on such Interest Due Date in the form of a Deferred Interest
            Advance.

     (b)    Each Deferred Interest Advance shall accrue interest at the Interest
            Rate applicable to such Advance calculated in accordance with
            Section 8.1 (Rate of Interest on A Loan).

9.   INTEREST PERIODS

                                       24
<PAGE>
9.1  DURATION

     (a)    The duration of each Interest Period of an Advance shall be three
            (3) months.

     (b)    If an Interest Period would otherwise end on a day which is not a
            Business Day, that Interest Period shall instead end on the next
            Business Day in that calendar month (if there is one) or the
            preceding Business Day (if there is not).

9.2  COMMENCEMENT

     The first Interest Period for each Advance shall commence on its Drawdown
     Date and each subsequent Interest Period relating to such Advance shall
     commence on the expiry of the preceding Interest Period for such Advance.

9.3  CONSOLIDATION

     Notwithstanding Section 9.1 (Duration):

     (a)    the first Interest Period relative to the Initial Advance shall
            commence on the Drawdown Date of such Advance and shall end on the
            first Quarter Date thereafter; and

     (b)    the first Interest Period relative to each Advance other than the
            Initial Advance shall commence on the Drawdown Date of such Advance
            and end on the last day of the Interest Period for the outstanding
            Advances, during which the Advance occurs.

9.4  COINCIDENCE WITH A LOAN REPAYMENT DATE AND FINAL MATURITY DATE

     (a)    If an Interest Period in relation to an Advance of the A Loan would
            otherwise overrun the A Loan Repayment Date, it shall be shortened
            so that it ends on the A Loan Repayment Date.

     (b)    If an Interest Period in relation to an Advance of the B Loan would
            otherwise overrun the Final Maturity Date, it shall be shortened so
            that it ends on the Final Maturity Date.

10.  LCS AND FACILITY GUARANTEES

10.1 PAYMENT UNDER LCS AND FACILITY GUARANTEES

     (a)    In the event that the Bank meets a claim or demand made under an LC
            or Facility Guarantee, the amount paid by it shall be treated, for
            all purposes hereunder, as being an Advance of the A Loan of an
            amount equivalent to the sum so paid by the Bank on the date of
            payment by the Bank.

     (b)    If the LC or Facility Guarantee is denominated in a currency other
            than Sterling, the amount actually paid by the Bank pursuant to such
            LC or Facility

                                       25
<PAGE>
            Guarantee shall be converted into Sterling on the basis of the
            Bank's Spot Rate of Exchange on the date of payment and the Advance
            of the A Loan pursuant to (a) above shall be equal to such amount.

10.2 INDEMNITY

     The Borrower will indemnify the Bank on demand and hold it harmless from
     and against all liabilities, losses, damages, costs, demands, claims and
     actions which the Bank may suffer or incur in connection with the issue or
     performance of any LC or Facility Guarantee and any claim or demand made
     thereunder or dispute or other matter relating thereto.

10.3 DIRECTION TO PAY

     The Borrower irrevocably directs the Bank to pay, without further
     confirmation or investigation from or by it, any demand appearing or
     purporting to be validly made pursuant to any LC or Facility Guarantee
     issued pursuant to this agreement. Where any LC or Facility Guarantee calls
     for the production of certificates or other documents, the Bank may assume,
     without investigation, that the certificates or documents tendered are
     fully signed by the person by whom they appear to be signed and are genuine
     and correct. The Bank shall be under no duty to check the identity, good
     standing or creditworthiness of any beneficiary of any LC or Facility
     Guarantee or to enforce any provision of any LC or Facility Guarantee, each
     of which will be issued without any representation or warranty on the part
     of the Bank and the Borrower agrees that it will at no time make any claim
     against the Bank or issue any proceedings against it in connection with the
     issue of, or any payment made under, an LC or Facility Guarantee.

10.4 NO IMPAIRMENT

     The Borrower's obligations under this Section 10 (LCS and Facility
     Guarantees) shall not be impaired by any waiver or time granted to or by
     the Bank in connection with any LC or Facility Guarantee, any defect in, or
     invalidity of, any LC or Facility Guarantee or any other circumstance which
     might otherwise impair such obligations.

10.5 SUBROGATION

     So long as any amount is or is capable of becoming outstanding by the
     Borrower under any Financing Document, the Borrower will not, by virtue of
     any Advance being made under Section 10.1 (Payment under LCS and Facility
     Guarantees) claim, exercise or become entitled to any right of subrogation,
     contribution or indemnity against any person in competition with the Bank
     in relation to any LC or Facility Guarantee.

10.6 MATURITY

     (a)    The Bank shall not issue any LC or Facility Guarantee pursuant to
            this Agreement which has a maturity or termination date which occurs
            later than the last day of the A Loan Availability Period.

                                       26
<PAGE>
     (b)    Upon the A Loan Repayment Date, any outstanding LC or Facility
            Guarantee shall be automatically cancelled and the provisions of
            Section 10.7 (Cancellation) shall apply.

10.7 CANCELLATION

     If an issued LC or Facility Guarantee is no longer required in relation to
     the Project and is cancelled and the original returned to the Bank, or if
     other evidence is provided to the Bank (such evidence to be in form and
     substance satisfactory to the Bank), that no liability exists a no
     circumstance can occur which may cause any liability to arise under the
     relevant LC or Facility Guarantee, then such LC or Facility Guarantee shall
     be treated as null and void and the amount of the A Loan then available
     shall be adjusted accordingly by the Bank.

11.  PAYMENTS

11.1 PLACE

     All payments by the Borrower to the Bank under this Agreement shall be made
     to the Facility Office, or at such office or bank as it may notify the
     Borrower for this purpose.

11.2 FUNDS

     Payments under this Agreement to the Bank shall be made for same day value
     by no later than 11.00 am on the due date, or at such times as the Bank may
     otherwise specify to the Borrower concerned as being customary at the time
     for the settlement of transactions in Sterling.

11.3 CURRENCY

     All amounts payable under this Agreement shall be paid in Sterling.

11.4 NO SET-OFF OR COUNTERCLAIM

     All payments made by the Borrower under this Agreement shall be made
     without set-off or counterclaim.

11.5 NON-BUSINESS DAYS

     (a)    If a payment under this Agreement is due on a day which is not a
            Business Day, the due date for that payment shall instead be the
            next Business Day in the same calendar month (if there is one) or
            the preceding Business Day (if there is not).

     (b)    During any extension of the due date for payment of any principal
            under this Section 11.5 (Non-Business Days) interest is payable on
            that principal at the rate payable on the original due date.

11.6 PARTIAL PAYMENTS

                                       27
<PAGE>
     (a)    If the Bank receives a payment insufficient to discharge all the
            amounts then due and payable by the Borrower under this Agreement,
            the Bank shall apply that payment towards the obligations of the
            Borrower under this Agreement in the following order:

            (i)    FIRST, in or towards payment pro rata of any unpaid fees,
                   costs and expenses of the Bank (or any receiver appointed
                   pursuant to the Security Documents on the application of the
                   Bank);

            (ii)   SECONDLY, in or towards payment pro rata of any Financing
                   Costs due but unpaid under this Agreement;

            (iii)  THIRDLY, in or towards payment pro rata of any Financing
                   Principal due but unpaid under this Agreement; and

            (iv)   FOURTHLY, in or towards payment pro rata of any other sum
                   due but unpaid hereunder.

     (b)    Section 11.6(a) above shall override any appropriation made by
            the Borrower.

12.  TAXES

12.1 GROSS-UP

     All payments by the Borrower hereunder shall be made without any deduction
     and free and clear of and without any deduction for or on account of any
     Taxes, except to the extent that the Borrower is required by law to make
     payment subject to any deduction or withholding of any Taxes. If any Tax or
     amounts in respect of Tax must be deducted, or any other deductions must be
     made, from any amounts payable or paid by the Borrower, the Borrower shall
     pay such additional amounts as may be necessary to ensure that the Bank
     receives a net amount equal to the full amount which it would have received
     had payment not been made subject to Tax or other deduction.

12.2 NOTIFICATION

     If, at any time, the Borrower becomes aware that any deduction or
     withholding is or will be required, it shall promptly notify the Bank and
     supply details of such requirements.

13.  MARKET DISRUPTION

13.1 MARKET DISRUPTION

     If:

     (a)    there shall be no objective possibility for the Bank to finance
            itself in Sterling in respect of any Advance about to be made or in
            a forthcoming Interest Period; or

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<PAGE>
     (b)    by reason of circumstances affecting the London interbank market,
            adequate and fair means do not exist for ascertaining LIBOR for that
            Advance or Interest Period.

     then the Bank shall promptly notify the Borrower that this Section 13
     (Market Disruption) is in operation.

13.2 SUSPENSION OF ADVANCES

     If a notification under Section 13.1 (Market Disruption) applies to an
     Advance which has not been made, that Advance shall not be made. However,
     on receipt of the notification, the Borrower and the Bank shall enter into
     negotiations for a period of not more than thirty (30) days with a view to
     agreeing an alternative basis for the borrowing of that Advance.

13.3 ALTERNATIVE BASIS FOR OUTSTANDING ADVANCES

     (a)    If a notification under Section 13.1 (Market Disruption) applies to
            an Advance which is outstanding, then on receipt of the
            notification, the Borrower and the Bank shall enter into
            negotiations for a period of not more than thirty (30) days with a
            view to agreeing an alternative basis for determining the rate of
            interest or funding or both applicable to that Advance.

     (b)    If no alternative basis is agreed (and the relevant circumstances
            are continuing at the end of the thirty day negotiation period),
            the Bank shall, on or before the last day of the Interest Period
            to which the notification relates, certify an alternative
            interest rate and interest period for that Advance representing
            the Bank's costs of funds for its Participation in the Advance
            plus the Margin or require prepayment of such Advance together
            with interest thereon on the next Interest Due Date. The
            prepayment fee provided in clause 7.2 shall not apply to such
            prepayment.

     (c)    Each alternative basis determined in accordance with this Section
            13.3 (Alternative basis for outstanding Advances) shall be binding
            on the Borrower and the Bank and treated as part of this Agreement.

13.4 REVIEW

     So long as any alternative basis for the ascertaining of the interest rate
     or funding is in force, the Bank and the Borrower shall from time to time,
     but not less than monthly, review whether or not the circumstances referred
     to in Section 13.1 (Market Disruption) still prevail with a view to
     returning to the original provisions of this Agreement. Upon any return to
     the normal provisions of this Agreement, the Advances shall be continued
     for an Interest Period expiring on the next Interest Due Date that would
     have applied pursuant to Section 9 (Interest Periods) if the provisions of
     this Section 13 (Market Disruption) had not been operating.

14.  INCREASED COSTS

                                       29
<PAGE>
14.1 INCREASED COSTS

     (a)    Subject to Section 14.2 (Exceptions), the Borrower shall forthwith
            on demand by the Bank pay to the Bank the amount of any increased
            cost incurred by it as a result of:

            (i)    the introduction of, or any change in, or any change in
                   the interpretation or application of, any Applicable Law;
                   or

            (ii)   compliance with any Applicable Law made after the date of
                   this Agreement,

            (including any Applicable Law relating to taxation, or reserve
            asset, special deposit, cash ratio, liquidity or capital adequacy
            requirements or any other form of banking or monetary control).

     (b)    Any demand made by the Bank under this Section 14.1(Increased Costs)
            shall be contained in a certificate which shall be conclusive and
            which shall include a computation of the relevant amount in
            reasonable detail.

            In this Agreement "INCREASED COST" means:

            (i)    an additional cost incurred by the Bank or any of its
                   Affiliates as a result of it having entered into, or
                   performing, maintaining or funding its obligations under, any
                   Finance Document; or

            (ii)   that portion of any additional cost incurred by the Bank or
                   any of its Affiliates in making, funding or maintaining all
                   or any advances comprised in a class of advances formed by or
                   including the Bank's participations in any Advance made or to
                   be made under this Agreement as is attributable to the Bank
                   making, funding or maintaining those participations; or

            (iii)
                   the amount of any payment made by the Bank or any of its
                   Affiliates, or the amount of any interest or other return
                   foregone by the Bank or any of its Affiliates, calculated by
                   reference to any amount received or receivable by the Bank or
                   any of its Affiliates from any other Party under this
                   Agreement.

14.2 EXCEPTIONS

     Section 14.1 (Increased costs) does not apply to any increased cost:

     (a)    compensated for under Section 12 (Taxes); or

     (b)    attributable to any change in the rate of, or change in the basis of
            calculating Tax on the overall net income of Bank the Bank (or the
            overall net income of

                                       30
<PAGE>
            a division or branch of the Bank) imposed in the jurisdiction in
            which its principal office or Facility Office is situated.

15.  ILLEGALITY

     If it is or becomes unlawful for the Bank to give effect to any of its
     obligations as contemplated by this Agreement or to exercise its rights
     under this Agreement, then the Bank may notify the Borrower accordingly;
     and

     (a)    the Borrower shall forthwith prepay the Advances together with all
            accrued interest and other amounts payable by it to the Bank under
            this Agreement (including, without limitation, pursuant to Section
            24 (Indemnities) subject to the Borrower having the benefit of any
            transitional period that may be provided by applicable law; and

     (b)    the unfunded portion of the Facility will forthwith be cancelled.

16.  REPRESENTATIONS AND WARRANTIES

     The Borrower represents and warrants to the Bank that:

16.1 STATUS

     The Borrower and each Obligor is duly incorporated with limited liability
     and validly existing under the laws of its jurisdiction of incorporation,
     with power and authority to own assets and to carry on its business as now
     being conducted.

16.2 POWER AND AUTHORITY

     (a)    The Borrower and each Obligor has all requisite corporate power and
            authority to execute and deliver the Transaction Documents to which
            it is or will be a party and to carry out and perform its
            obligations under such Transaction Documents and to consummate the
            transactions contemplated hereby and thereby.

     (b)    All corporate action on the part of the Borrower and each Obligor,
            their respective directors, and shareholders necessary for the
            authorisation, execution and delivery of the Transaction Documents
            to which they are or will be a party and the performance of all of
            their respective obligations thereunder have been taken.

16.3 LEGAL VALIDITY

     Each Transaction Document to which the Borrower and each Obligor is or will
     be a party constitutes, or when executed in accordance with its terms will
     constitute, its legal, valid and binding obligation enforceable in
     accordance with its terms.

16.4 NON-CONFLICT

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<PAGE>
     The Borrower and each Obligor's entry into the Transaction Documents to
     which it is or will be a party and the performance of the transactions
     contemplated thereby do not and will not:

     (a)    conflict in any respect with any law or regulation or judicial or
            official order; or

     (b)    conflict with its constitutional documents;

     (c)    conflict with any document which is binding upon it; or

     (d)    result in the creation or enforcement of any Security Interest
            upon any of its properties or assets.

16.5 NO DEFAULT

     (a)    No Default is outstanding or might result from the making of any
            Advance;

     (b)    No other event or circumstance is outstanding which constitutes (or
            with the giving of notice, lapse of time, determination of
            materiality or the fulfilment of any other applicable condition or
            any combination of the foregoing, might constitute) a default under
            any document which is binding on it which could reasonably be
            expected to have a Material Adverse Effect.

     (c)    No Obligor is in breach of the terms of any Transaction Document in
            a manner which could reasonably be expected to have a Material
            Adverse Effect.

16.6 PROJECT PERMITS

     (a)    All Project Permits (other than those set out in Schedule 10)
            required in connection with the entry into, performance, validity
            and enforceability of the Transaction Documents and the
            transactions contemplated by the Transaction Documents or
            otherwise in connection with the operation of the Borrower's
            business have been obtained or effected and are in full force and
            effect and no steps have been taken to revoke or cancel any
            Project Permit obtained or effected.

     (b)    The Borrower has not received any notice of, and is not aware of any
            other reason why, any Project Permit not yet required but that may
            be required in accordance with the provisions of the Transaction
            Documents or otherwise in connection with its business will not be
            obtained or effected.

16.7 LITIGATION

     (a)    No litigation, arbitration or administrative proceedings are
            current, pending or, to the best of the Borrower's knowledge,
            threatened against or affecting the Borrower or, to the best of
            the Borrower's knowledge, current, pending or threatened against
            any other party to any Transaction Document, or any of the
            Borrower's or their respective properties, revenues or assets or
            the Project or

                                       32
<PAGE>
            the Site which in any single case or taken together, could have a
            Material Adverse Effect.

     (b)    There is no injunction, writ, preliminary restraining order or any
            order of any nature issued by an arbitrator, court or other
            Governmental Authority directing that any of the material
            transactions provided for in any of the Transaction Documents or not
            be consummated as herein or therein provided.

     (c)    Neither the Borrower nor any Obligor is in default with respect to
            any writ, order, decree, injunction or other decision of any
            Governmental Authority which in any single case or taken together,
            could have a Material Adverse Effect.

16.8 FINANCIAL STATEMENTS

     The audited financial statements of the Borrower and each Obligor most
     recently furnished to the Bank:

     (a)    have been prepared in accordance with generally accepted
            accounting principles, save as specified therein;

     (b)    have been audited by the Auditors; and

     (c)    fully and fairly represent the financial condition and state of
            affairs of the Borrower and each Obligor as at the date to which
            they were drawn up and for the periods specified therein and the
            results of their respective financial operations during such period,
            and there has been no change in the financial condition of:

            (i)    the Borrower; or

            (ii)   any Obligor that has had or is reasonably likely to have a
                   Material Adverse Effect, since the date to which those
                   financial statements were drawn up.

16.9 TAXES

     (a)    The Borrower and each Obligor has filed or caused to be filed all
            Tax returns which are required to be filed by the Borrower and
            has paid all Taxes due and payable with respect to such returns
            or on any assessments made against it or any of its property
            (other than any Taxes the amount or validity of which are
            currently being contested by the Borrower or any Obligor (as
            applicable) in good faith and by appropriate proceedings and in
            respect of which an adequate reserve has been established).

     (b)    No claim is being asserted with respect to any Tax, and there are no
            material questions or disputes pending or, to the Borrower's or each
            Obligor's best knowledge, threatened by any Governmental Authority
            with respect to any Tax.

                                       33
<PAGE>
     (c)    The Borrower and each Obligor has paid, or has provided adequate
            reserves (in the good faith judgement of the management of the
            Borrower and each Obligor) for the payment of all Taxes applicable
            for all prior fiscal years and for the current fiscal year.

     (d)    Any breach of (a) - (c) above in relation to an Obligor shall only
            constitute a breach where in a single case or in the aggregate, such
            breach constitutes a Material Adverse Effect.

16.10 WINDING -UP

     To the best knowledge of the Borrower (after due enquiry with each
     Obligor), no proceedings for the bankruptcy, winding up, insolvency, or
     reorganisation of or for any moratorium or scheme of arrangement or any
     other similar proceedings relating to the Borrower or any Obligor are
     pending before a court in a competent jurisdiction and, if made final by
     court order, may have a Material Adverse Effect.

16.11 TITLE AND OWNERSHIP

     The Borrower has good and marketable title to the Hotel and all its other
     rights and assets free and clear of all Security Interests (other than
     Permitted Security Interests) and does not own any assets or property other
     than those used in connection with the Project and the operation of the
     Hotel.

16.12 NO OTHER BUSINESS

     (a)    The Borrower has not:

            (i)    engaged in any business or activities, either alone or in
                   partnership or joint venture other than the design,
                   development, construction, financing, ownership (to the
                   extent relevant), use, operation and maintenance of the
                   Project; or

            (ii)   incurred any liabilities other than in connection with its
                   participation in the transactions contemplated by the
                   Transaction Documents.

     (b)    The Borrower has no subsidiaries (other than the Operator, Albert
            Hotel Holding Ltd. and Albert Hotel Ltd.) and owns no equity
            interest in any other Person.

16.13 CAPITALISATION

     (a)    The Borrower has an authorised share capital of E90,000 divided into
            90,000 ordinary shares of E1 each, none of which is subject to any
            Security Interest other than those created by the Security
            Documents.

     (b)    The Borrower has issued 18,000 ordinary shares, which are owned
            as follows:

                                       34
<PAGE>
            (i)    BEA Hotels N.V. owns 8,100 ordinary shares;

            (ii)   EuroSea Hotels N.V. owns 8,100 ordinary shares;_and

            (iii) Park Plaza Hotel Europe Limited owns 800 ordinary shares.

     (c)    The Borrower does not have outstanding any securities convertible
            into or exchangeable for its share capital or any rights to
            subscribe for or to purchase, or any options, warrants or other
            rights to acquire share capital or securities convertible into or
            exchangeable or exercisable for share capital, or any agreements,
            arrangements or understandings providing for the issuance
            (contingent or otherwise) of, or any calls, commitments or claims
            of any character relating to, its share capital.

16.14 TRANSACTION DOCUMENTS

     (a)    The copies of the Transaction Documents which the Borrower and each
            other relevant Person has delivered to the Bank are true, correct
            and complete copies of those documents which include all amendments,
            exhibits, schedules, attachments and disclosure letters referred to
            therein or delivered pursuant thereto, if any.

     (b)    Other than the Transaction Documents, there are no other material
            agreements concerning the Project to which the Borrower is a party.

     (c)    No event has occurred or circumstances arisen whereby any
            Transaction Document could be terminated or a party to a Transaction
            Document could be subject to any penalty.

16.15 NO FORCE MAJEURE

     The Borrower is not aware of any continuing event of force majeure as
     defined in or contemplated by any of the Transaction Documents.

16.16 PROJECT BUDGETS

     (a)    Each of the the Construction Period Budget, Operating Budget and
            each other projection or budget furnished to the Bank by or on
            behalf of the Borrower:

            (i)    is based on reasonable assumptions and projections as to
                   all legal and factual matters material to any estimates
                   included therein;

            (ii)   is consistent with the provisions of the Transaction
                   Documents in all material respects;

            (iii)  has been prepared in good faith and with due care after
                   careful and proper consideration and enquiry;

                                       35
<PAGE>
            (iv)   fairly represents the Borrower's expectations as to the
                   matters covered therein;

            (v)    takes due account of all Applicable Laws as they apply for
                   the time being, where such Applicable Laws are material to
                   any estimates included therein; and

            (vi)   takes into account all other facts and circumstances
                   affecting the Project, where such facts and circumstances are
                   material to any estimates included therein.

     (b)    The Construction Period Budget and each other cash flow and other
            projection or budget provided prepared by or on behalf of the
            Borrower accurately specifies all costs and expenses incurred by
            the Borrower and the Borrower's best estimate of all costs and
            expenses anticipated by it to be incurred by it prior to the
            Economic Completion Date (in the case of the Construction Period
            Budget) and during the relevant period (in the case of each other
            relevant cash flow or other projection or budget) to construct,
            operate and finance the construction and operation of the Project
            in the manner contemplated by the Transaction Documents.

     (c)    The arithmetic and methodology of all calculations contained in the
            the Construction Period Budget, the Operating Budget or any other
            projection or budget prepared by or on behalf of the Borrower are
            correct and in keeping with best professional practice in all
            material respects.

16.17 INTELLECTUAL PROPERTY

     The Borrower owns or has the right to use or will, before the Economic
     Completion Date, have the right to use by no later than the date upon which
     it is required for the Project pursuant to the Transaction Documents or
     otherwise, all Intellectual Property Rights and has obtained assignments of
     all leases and other rights of whatever nature necessary for the conduct of
     its business and the development, commencement, execution, construction,
     completion and operation and maintenance of the Project.

16.18 SECURITY AND COLLATERAL

     (a)    Each Security Document confers the Security Interests it purports
            to confer over all of the Collateral referred to in such Security
            Document and those Security Interests are first ranking, not
            subject to any prior or pari passu Security Interests (other than
            Permitted Security Interests) and are not liable to avoidance due
            to any (i) bankruptcy, winding-up, composition or any other
            similar insolvency proceedings for the reorganisation of the
            affairs of the Borrower; or (ii) any other similar act or
            circumstance of the Borrower on the date of execution of the
            relevant Security Document.

     (b)    Other than the Security Interests created or purported to be created
            under the Security Documents and Permitted Security Interests, there
            are no other

                                       36
<PAGE>
            Security Interests covering the Project, the Site or the Collateral
            and no obligations to create any such Security Interests.

     (c)    The Security Documents have been duly filed, recorded and/or
            registered in each office and in each jurisdiction where required to
            create, perfect and maintain in full force and effect all Security
            Interests under the Security Documents.

     (d)    Except as expressly stated in the Finance Documents:

            (i)    the Borrower is the sole legal and beneficial owner of the
                   Collateral;

            (ii)   there subsists no breach or failure to comply with the
                   requirements of any Applicable Law which affects or which
                   could reasonably be expected to affect materially the value
                   of the Collateral or the rights of the Finance Parties with
                   respect to the Security Interests therein;

            (iii)  there are no covenants, agreements, stipulations,
                   reservations, conditions, interests, rights or other matters
                   whatsoever which adversely affect the Collateral or its
                   assignability;

            (iv)   the Borrower has received no notice of any adverse claim
                   by any Person in respect of the ownership of the
                   Collateral or any interest in it; and

            (v)    all the buildings and other immovable property located on the
                   Site are in all material respects in good and substantial
                   repair.

16.19 PARI PASSU RANKING

     The Borrower's obligations (to the extent, if any, they are not secured)
     under the Finance Documents rank and will rank at least pari passu with all
     its unsecured obligations, except for obligations mandatorily preferred by
     applicable law.

16.20 ENVIRONMENT

     (a)    The Borrower is in full compliance with all applicable Environmental
            Laws and Environmental Licences.

     (b)    Neither the Site nor the Project (nor any other property with
            respect to which the Borrower has retained or assumed liability
            either contractually or by operation of Applicable Law) contains
            or has been affected by any dangerous substance and there are no
            other circumstances that are likely to prevent or interfere with
            the Borrower's and the Project's compliance with all applicable
            Environmental Laws and Environmental Licences or give rise to an
            Environmental Claim, which circumstances, have had or are
            reasonably likely to have a Material Adverse Effect.

16.21 INSURANCE

                                       37
<PAGE>
     All Insurances are or, at the time they are required to be maintained or
     effected, will be, in full force and effect and no event or circumstance
     has occurred, nor has there been any omission to disclose a fact, which
     would in either case entitle any insurer to avoid or otherwise reduce its
     liability under any policy relating to the Insurances.

16.22 ACCURACY OF REPRESENTATIONS

     (a)    Each of the representations and warranties herein is true and
            correct and none of them omits any matter necessary to make such
            representation not misleading in any material respect.

     (b)    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, delivery or performance of any other Transaction
            Document or by any other act or thing which may be done by or on
            behalf of the Bank or any of them in connection with any
            Transaction Document.

16.23 REPETITION

     The representations and warranties set out in this Section 16
     (Representations and Warranties):

     (a)    are made on the date hereof;

     (b)    shall survive the execution hereof, the date of Financial Close,
            the cancellation of any Commitments and the making and repayment
            of each Advance; and

     (c)    will be deemed to be repeated on the date of the giving of each
            Advance Request, on each Drawdown Date and on the first day of each
            Interest Period,

     as if each such representation and warranty was made as of such time with
     reference to the facts and circumstances then subsisting, except where any
     such representation or warranty is expressed to be made as of an earlier
     date, it shall be deemed to be repeated with reference to the facts and
     circumstances existing at such earlier date.

17.  COVENANTS AND UNDERTAKINGS

     The Borrower hereby makes the following covenants and undertakings to the
     Bank.

17.1 FINANCIAL STATEMENTS AND INFORMATION

     (a)    The Borrower shall provide to the Bank (each, in two (2) copies):

            (i)    as soon as available but, in any event, by no later than
                   120 days from the end of the relevant financial year
                   (other than in the case of Guarantors, which shall be 180
                   days from the end of each relevant financial year),
                   audited annual financial statements of the Borrower,

                                       38
<PAGE>
                   each Guarantor and the Operator, including a balance sheet
                   and the related statements of operating income, retained
                   earnings, cash flow and profit and loss, together with the
                   auditors report thereon, all of which shall be in form and
                   substance satisfactory to the Bank.

            (ii)   as soon as available but, in any event, by no later than
                   90 days from the end of each half-year (i.e. 30 June and
                   31 December each year) - other than in the case of the
                   Guarantors, which shall be 120 days from the end of each
                   half year - , reviewed, but not audited, financial
                   statements of the Borrower, each Guarantor and the
                   Operator for such six-month period including a balance
                   sheet and related statements of income, retained earnings,
                   cash flow and profit and loss, all of which shall be in
                   form and substance satisfactory to the Bank, all of which
                   shall be in form and substance satisfactory to the Bank.

     (b)    The Borrower shall provide to the Bank, promptly after the
            Borrower's receipt thereof, a copy of any "management letter" or
            other similar communication received by the Borrower from the
            Borrower's Auditors in relation to the Borrower's financial,
            accounting or other systems, management or accounts.

     (c)    Together with the financial statements referred to in (a) above, a
            certificate signed by a director of the Borrower certifying that, as
            at the date of such certificate, no Event of Default or Potential
            Default has occurred and is continuing.

17.2 PROJECT BUDGETS

     (a)    The Borrower shall supply to the Bank as soon as practicable (and
            in any event, at least 30 days prior to the end of each financial
            year), a Construction Period Budget or Operating Budget, as
            appropriate, for the Borrower for the forthcoming financial year,
            including the assumptions made in preparing such budget and,
            where such budget contains any adverse variation from any
            previous forecast, an explanation of such variation.  The
            Construction Period Budget shall be supplied to the Bank's
            Project Monitor at the same time as the Bank.

     (b)    Each Construction Period Budget or Operating Budget shall contain
            complete, fair and accurate estimates (by principal components)
            of operating costs, Debt Service and the status of each of the
            Accounts for each month covered by such Budget based on the
            Borrower's best projections at such time. From time to time, the
            Borrower may propose amendments to the current Budget, and the
            Bank may reject such proposal within thirty (30) Business Days
            from the date the Borrower submits such proposal if in the
            opinion of the Bank, such amendment is not beneficial for the
            operation of the Project and, if no such rejection is made, such
            amendments shall become effective.  An increase in the Budget
            solely in order to meet increased costs proportionate to
            increased room occupancy shall not be deemed an amendment for the
            purposes of this Section 17.2(b).

                                       39
<PAGE>
17.3 CONSTRUCTION REPORTS

     During the Construction Period, the Borrower shall supply to the Bank and
     the Bank's Project Monitor as soon as practicable (and in any event, at
     least 15 days after the end of each month), for each month prior to Project
     Completion, a progress report on the Project in form and substance
     satisfactory to the Bank and including:

     (a)    details of the progress of the Construction Works;

     (b)    comparison of the progress of the Construction Works against the
            timetable represented to the Bank by the Borrower ;

     (c)    review of the forecast Construction Works for the following month;

     (d)    review of any changes to the Construction Works requested or
            carried out;

     (e)    any information indicating that the timetable for the
            Construction Works will not be met; and

     (f)    details of any anticipated cost overruns.

17.4 OPERATION REPORTS

     (a)    During the Operating Period, the Operator shall supply to the Bank
            as soon as practicable (and in any event, at least 15 days after the
            end of each month), for each month, a copy of the monthly hotel
            operating accounts of the Borrower and/or Operator (as applicable).

     (b)    As soon as they are available, copies of all documents and
            information provided by Park Plaza Hotels Europe Limited to the
            Operator pursuant to the hotel management agreement.

17.5 PROJECT NOTICES

     Immediately upon receipt or despatch thereof, the Borrower shall and shall
     procure that the Operator shall provide the Bank with copies of all
     notices, filings, reports, demands, claims, amendments or waivers provided
     under or in connection with any Transaction Document or any Project Permit.

17.6 OTHER INFORMATION

     (a)    The Borrower shall provide the Bank, forthwith upon receipt thereof,
            with details of any Security Interest becoming enforceable over any
            of the Collateral and any information which is required to create,
            maintain, perfect and protect the Security Interests under the
            Security Documents in favour of the Bank .

     (b)    At the request of the Bank, the Borrower shall provide the Bank with
            copies of all Project Permits required at the relevant time under
            any Applicable Law to

                                       40
<PAGE>
            enable it to perform its obligations under, or required at the
            relevant time for the validity or enforceability of, the Transaction
            Documents.

     (c)    The Borrower shall notify the Bank in writing, promptly upon but in
            any event within seven (7) days of becoming aware of them, of
            details of any proposed material change in the nature or scope of
            the Project or the Site or the business or operations of the
            Borrower.

     (d)    Upon becoming aware that, as of the date that any written
            information was supplied by or on behalf of the Borrower or any
            Obligor to the Bank, such written information:

            (i)   was misleading or incorrect in any material respect; or

            (ii)  might have had the effect of varying any of the Transaction
                  Documents, the Borrower shall promptly notify the Bank
                  thereof.

17.7 LITIGATION

     (a)    Immediately upon becoming aware thereof, the Borrower shall and
            shall procure that each Obligor shall notify the Bank and shall
            provide copies of documents or items relating to details of any
            arbitration, claim, suit, litigation, demand, proceeding,
            complaint, assessment, lien, injunction, order, judgement, notice
            of non-compliance or violation, investigation or other action by
            the Contractor, each Obligor, any Governmental Authority or third
            party which is pending or, to the Borrower's knowledge,
            threatened against the Borrower or any Obligor which may affect
            the Project (a "CLAIM") and, together, in the case of litigation
            to which the Borrower is party, with details of how the Borrower
            proposes to conduct the litigation, arbitration or proceedings or
            otherwise resolve the dispute in question provided that this
            clause shall only apply:

            (i)    in relation to the Borrower, in respect of a Claim or
                   series of Claims in excess of GBP 500,000;

            (ii)   in relation to the Operator, in respect of a Claim or
                   series of Claims in excess of GBP 100,000; and

            (iii)  in relation to an Obligor, in respect of a Claim or series of
                   Claims which may have a Material Adverse Effect.

     (b)    The Borrower will and shall procure that each Obligor and the
            Contractor will make all filings and responses to any Claim in a
            timely manner and will pursue all remedies and appeals, defend its
            rights and properties with diligence and take all lawful action to
            avoid anything which, in the judgement of the Bank, has had or is
            reasonably likely to have a Material Adverse Effect.

17.8 DEFAULT

                                       41
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     Immediately upon becoming aware thereof, the Borrower shall and shall
     procure that the Operator shall notify the Bank of details of any actual or
     alleged Default.

17.9 INSURANCE

     Immediately upon becoming aware thereof, the Borrower shall and shall
     procure that the Operator shall notify the Bank and the Bank's Insurance
     Adviser of details of any claims, renewals or reports made under or in
     connection with any of the Insurances.

17.10 DAMAGE

     Immediately upon becoming aware thereof, the Borrower shall and shall
     procure that the Operator shall notify the Bank of details of any damage to
     or destruction of property relevant to the Project.

17.11 ENVIRONMENTAL MATTERS

     (a)    Immediately upon becoming aware thereof, the Borrower shall and
            shall procure that the Operator shall notify the Bank of details
            of any non-compliance with any Environmental Law or Environmental
            Licence of which it is aware, of any Environmental Claim or of
            any material safety hazard or risk (or any event, condition or
            circumstance that could form the basis of an Environmental Claim
            or safety risk or hazard) with respect to the Borrower, the
            Project or the Site or any portion thereof or any Person party to
            any Project Document, or any suspension, revocation or
            modification of any Environmental Licence.

     (b)    The Borrower shall comply fully, and will cause all other Persons
            occupying, using or present at the Project to comply fully with:

            (i)    all applicable Environmental Laws; and

            (ii)   the terms and conditions of all Environmental Licences
                   applicable to the Borrower or such Person,

            and for this purpose will implement procedures to monitor compliance
            and contain liability in accordance with its obligations under the
            Transaction Documents.

     (c)    The Borrower will promptly take all actions and pay or cause to be
            paid all costs necessary to comply with all Environmental Laws and
            eliminate any material risk to human health or property or the
            environment.

     (d)    At the request of the Bank, the Borrower shall cause an
            environmental assessment and audit of the Project and the Site to be
            conducted to confirm the Borrower's compliance with this Section
            17.11 (Environmental Matters). The Borrower agrees to cooperate
            fully with the Bank and its agents in connection with any such
            assessment or audit and to pay the cost thereof.

                                       42
<PAGE>
17.12 GENERAL

     The Borrower shall and shall procure that the Operator shall provide to the
     Bank such other information or documents (financial or otherwise) as the
     Bank may request.

17.13 FORM OF INFORMATION

     All financial statements, reports and projections required shall be
     prepared in accordance with generally accepted accounting principles and
     shall fairly and accurately represent the financial condition of the
     Borrower.

17.14 ACCESS TO PROJECT

     The Borrower shall procure that the Bank and the Banks' Project Monitor
     shall be allowed, upon reasonable notice, to visit any of the properties of
     the Borrower and to view the Project, the technical and statistical data,
     financial statements, records and other data in the possession or control
     of the Borrower with respect to the Project, to discuss the affairs,
     finances and the financial statements of the Borrower with and to be
     advised as to the same by the officers of the Borrower, and to take copies
     of any documents inspected.

17.15 RECORDS

     (a)    The Borrower shall and shall procure that the Operator shall, at
            its expense, keep and maintain in a manner adequate to reflect
            truly and fairly the financial condition and results of
            operations of the Borrower (including the progress of the
            Project) and in accordance with generally accepted accounting
            principles and all Applicable Laws, up to date statutory books,
            books of account, bank statements and other records of the
            Borrower. The Borrower shall maintain adequate management
            information and cost control systems.

     (b)    The Borrower will at all times cause a complete set of the current
            and (when available) as-built plans (and all supplements thereto)
            relating to the Project to be maintained at the Borrower's main
            office for inspection by the Bank and any employees or advisors of
            the Bank.

17.16 MAINTENANCE OF EXISTENCE

     (a)    The Borrower shall at all times preserve and maintain in full
            force and effect:

            (i)    its existence as a special purpose company with limited
                   liability under the Applicable Laws of the Netherlands;

            (ii)   all powers, rights, privileges and franchises necessary
                   for the development, construction, maintenance and
                   operation of the Project and the maintenance of its
                   existence; and

            (iii)  good and marketable title to its properties and assets
                   (including the Collateral).

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<PAGE>
     (b)    The Borrower shall not engage in any other business or activities
            (either alone or with any other Person) other than those directly
            related to the Project.

17.17 PROJECT PERMITS

     (a)    The Borrower shall, and shall procure that the Contractor and
            Operator shall, obtain or cause to be obtained (at the relevant
            time) all Project Permits required to commence, construct,
            execute, finance, operate and maintain the Project in accordance
            with the provisions of the Transaction Documents and all
            Applicable Laws and to perform its obligations under the
            Transaction Documents, and will comply with all such Project
            Permits and all Applicable Laws relating thereto.

     (b)    Each such Project Permit shall be duly obtained, validly issued, in
            full force and effect and not subject to appeal and free from
            conditions or requirements which are not reasonably expected to be
            satisfied by the date they are required to be satisfied pursuant to
            the terms of such Project Permit.

     (c)    The Borrower shall ensure that each of the Borrower, the Contractor
            and the Operator has or at the relevant time will have all rights
            necessary to commence, execute, implement, design, build, finance,
            operate, complete and maintain the Project (including, without
            limitation, all Intellectual Property Rights and all necessary
            rights of access, entry, and exit to and from the Site).

17.18 PARI PASSU RANKING

     The Borrower shall procure that its obligations under the Finance Documents
     do and will rank, at least pari passu as to priority of payment with all
     its other present and future obligations, except for obligations
     mandatorily preferred by law applying to companies generally.

17.19 NEGATIVE PLEDGE

     The Borrower shall not, and shall procure that the Operator shall not
     create, or permit to subsist, any Security Interest over any of its present
     or future assets, other than Permitted Security Interests.

17.20 SECURITY

     (a)    The Borrower shall, and shall procure that the Operator shall,
            defend the Collateral or cause the Collateral to be defended
            against, and shall take, at its expense, any action necessary to
            remove any Security Interest (other than Permitted Security
            Interests) over any of its present or future assets or the
            Collateral, and shall defend the right, title and interest of the
            Bank in and to any such asset or Collateral against the claims
            and demands of all other Persons.

                                       44
<PAGE>
     (b)    The Borrower will perfect and maintain all Security Interests
            created under the Security Documents in favour of the Bank and will
            effect all registrations or notifications relating thereto that are
            required or advisable in order to perfect or maintain such Security
            Interests.

17.21 TRANSACTIONS SIMILAR TO SECURITY

     Neither the Borrower nor the Operator shall:

     (a)    sell, transfer or otherwise dispose of any of its assets on terms
            whereby it is or may be leased to or re-acquired or acquired by
            it or any of its related entities; or

     (b)    sell, transfer or otherwise dispose of any of its receivables on
            recourse terms, except for the discounting of bills or notes in the
            ordinary course of trading,

     in circumstances where the transaction (if in excess of seventy thousand
     pounds sterling) is entered into primarily as a method of raising finance
     or of financing the acquisition of an asset otherwise than pursuant to the
     Security Documents.

17.22 DISPOSALS

     (a)    The Borrower shall not and shall procure that the Operator shall
            not either in a single transaction or in a series of
            transactions, whether related or not and whether voluntarily or
            involuntarily, sell, convey, transfer, grant or lease or
            otherwise dispose of (or agree to do any of the foregoing at any
            future time) its interest in the Site or the Project, the benefit
            of any of the Transaction Documents, the Collateral, any material
            asset or substantial part of its assets.

     (b)    This restriction shall not apply to disposals of the part of the
            Collateral subject only to the floating charge created under the
            Debenture in the ordinary course of business or the creation of
            Permitted Security Interests.

17.23 BORROWINGS AND GUARANTEES

     (a)    The Borrower shall not and shall procure that the Operator shall not
            create, incur, assume or suffer to exist any loans, credit, debt,
            guarantee or other Financial Indebtedness other than Permitted
            Indebtedness or as expressly contemplated under the Transaction
            Documents.

     (b)    The Borrower shall not and shall procure that the Operator shall not
            make any payment of principal, interest or any other amount in
            connection with any Financial Indebtedness (other than Permitted
            Indebtedness) without the prior written consent of the Bank.

     (c)    The Borrower shall not, directly or indirectly, make or have
            outstanding any loans or provide credit to any third party.

17.24 CAPITAL EXPENDITURE AND BUDGETS

                                       45
<PAGE>
     (a)    The Borrower shall not incur any expenditure other than those
            construction related costs provided for in the Construction Period
            Budget and operating costs provided for in the Operating Budget.

     (b)    The Borrower shall not, directly or indirectly, amend, modify,
            allocate, re-allocate or supplement or permit or consent to the
            amendment, modification, allocation, re-allocation or supplement of,
            any of the provisions of any Operating Budget or Construction Period
            Budget, except with the prior consent of the Bank.

17.25 MATERIAL CONTRACTS

     (a)    The Borrower shall not become a party to any oral or written
            agreement, contract or commitment other than in the ordinary course
            of business and on an arm's-length basis, without the prior written
            consent of the Bank.

     (b)    The Borrower shall not enter into any transaction or series of
            related transactions with any Person other than in the ordinary
            course of business and on an arm's-length basis or establish any
            sole and exclusive purchasing or sales agency, or enter into any
            transaction whereby the Borrower might receive less than the full
            fair market value for its services or pay more than fair market
            value for products or services of others.

     (c)    The Borrower shall not enter into any agreement or arrangement to
            acquire by lease the use of any property or equipment of any kind
            without the prior consent of the Bank, except leases of operating
            equipment and premises which give rise to rental payments that are
            included in the current Construction Period Budget or Operating
            Budget.

17.26 MERGERS AND ACQUISITIONS

     (a)    The Borrower, shall not and shall procure that the Operator and each
            Obligor shall not enter into any voluntary liquidation, bankruptcy,
            winding up, dissolution, merger, demerger, amalgamation or
            reorganisation.

     (b)    The Borrower shall not acquire any assets (other than purchases and
            acquisitions of inventory and materials, each relating to the
            Project and in the ordinary course of business).

17.27 INVESTMENTS, ACCOUNTS

     The Borrower shall not and shall procure that the Operator shall not:

     (a)    invest in the share capital of any corporate body or other entity or
            purchase or acquire any shares, obligations or securities of, or any
            interest in or make any capital contribution to any Person or make
            any other investments;

     (b)    form or acquire or otherwise have any subsidiary; or

                                       46
<PAGE>
     (c)    open or maintain any accounts other than the Accounts.

17.28 SHARE CAPITAL

     (a)    The Borrower shall not and shall procure that the Operator shall
            not:

            (i)    purchase, cancel, redeem or take steps to reduce any of
                   its share capital;

            (ii)   issue any shares or any options, warrants or other rights to
                   subscribe, purchase or acquire any shares of the Borrower or
                   the Operator or securities convertible into or exchangeable
                   for its share capital to any Person or rights to share in
                   profits, except for the issuance of shares pro rata to the
                   Shareholders.

     (b)    The Borrower shall not and shall procure that the Operator shall not
            grant or create any rights or options to participate directly or
            indirectly in the revenues or profits of the Borrower.

     (c)    The Borrower shall not permit or consent to:

            (i)    any transfer of shares of the Borrower or the Operator; or

            (ii)   any transfer of any interests in or rights arising in
                   respect of Subordinated Loans provided to the Borrower

            except as is expressly permitted under the terms of the Finance
            Documents.

17.29 DISTRIBUTIONS

     (a)    The Borrower shall not declare, pay or make any distribution or
            dividend (in cash, property or otherwise) on any shares of any
            class of its capital, or on any warrants, options or other rights
            with respect to any such shares provided that the Borrower may,
            after the Economic Completion Date, declare and pay dividends if
            the Borrower gives the Bank at least 20 days' prior written
            notice of its intention to make such a payment and the following
            conditions are satisfied:

            (i)    no Event of Default or Potential Default shall have occurred
                   and be continuing at the time of making such declaration or
                   payment or would result from any such payment being made;

            (ii)   such payment is permitted to be made pursuant to the
                   provisions of this agreement and the Subordination
                   Agreement;

            (iii)  no dividend or distributions have been made by the Borrower
                   and no repayments of principal or interest arising under the
                   Shareholder Loan

                                       47
<PAGE>
                   Agreements have been made by the Borrower during the
                   preceding 12 calendar months;

            (iv)   the Bank has notified the Borrower that it is satisfied
                   that:

                   (A)    the Debt Service Cover Ratio for the period comprising
                          the 12 months immediately preceding the date of the
                          proposed payment was at least 1.4:1;

                   (B)    the Debt Service Cover Ratio for the 12 months
                          immediately preceding the date of the calculation
                          would be not less than 1.3:1 if calculated on the
                          basis that the dividends or distributions in question
                          had been paid and on the assumption that interest
                          rates remain constant; and

                   (C)    the amount required pursuant to Section 19.5 (Debt
                          Service Reserve Account) has been deposited in the
                          Debt Service Reserve Account; and

            (v)    the Bank, acting reasonably, otherwise approves the making of
                   such payment which shall be approved should the Bank
                   determine that the Borrower is able to continue to meet all
                   of its obligations as they fall due.

17.30 SHAREHOLDER LOANS

     (a)    The Borrower shall not make any payment of interest or repayment of
            principal in respect of monies lent to it under any of the
            Shareholder Loan Agreements provided that the Borrower may, after
            the Economic Completion Date, make such payments in each case on the
            scheduled dates therefore under the relevant Shareholder Agreement
            if the following conditions are satisfied:

            (i)    where no Event of Default or Potential Default has occurred
                   and be continuing at the time of making the payment and will
                   not result from any such payment being made;

            (ii)   such payment is permitted to be made pursuant to the
                   provisions of this agreement and the Subordination
                   Agreement;

            (iii)  the Bank has notified the Borrower that it is satisfied
                   that:

                   (A)    the Debt Service Cover Ratio for the period comprising
                          the 12 months immediately preceding the date of the
                          proposed payment was at least 1.4:1; and

                   (B)    the Debt Service Cover Ratio for the 12 months
                          immediately preceding the date of calculation would be
                          not less than 1.3:1 if calculated on the basis that
                          the payment in question had been paid and on the
                          assumption that interest rates remain constant; and

                                       48
<PAGE>

                   (C)    the amount required pursuant to Section 19.5 (Debt
                          Service Resource Account) has been deposited in the
                          Debit Service Reserve Account; and

            (iv)   the Bank, acting reasonably, otherwise approves the making of
                   such payment which shall be approved should the Bank
                   determine that the Borrower is able to continue to meet all
                   of its obligations as they fall due.

17.31 AMENDMENTS

     (a)    The Borrower shall not and shall procure that the Operator shall
            not, without the prior written consent of the Bank:

            (i)    amend or modify its Articles of Association; or

            (ii)   change its fiscal year.

     (b)    The Borrower shall not, directly or indirectly, terminate, cancel or
            suspend, or permit or consent to any termination, cancellation or
            suspension of, or enter into or consent to or permit the assignment
            of the rights or obligations of any party to, any of the Project
            Documents other than as expressly required by the terms of the
            Finance Documents.

17.32 PROJECT DOCUMENTS

     (a)    The Borrower shall not and shall procure that the Operator shall not
            take any of the following actions without the prior written consent
            of the Bank:

            (i)    propose, allow or agree to any material amendment to a
                   Project Document;

            (ii)   propose, allow or agree to the termination of any Project
                   Document;

            (iii)  waive compliance with any material provision of a Project
                   Document; or

            (iv)   assign or transfer any or all of its rights under a Project
                   Document or agree to any assignment or transfer of such
                   rights.

17.33 CONSTRUCTION

     (a)    The Borrower shall procure that the Project is constructed,
            completed, tested, commissioned, equipped and maintained in
            accordance with:

            (i)    Good Industry Practice;

            (ii)   the requirements relating to the Project the Project
                   Documents using materials of good quality;

                                       49
<PAGE>
            (iii)  the Construction Period Budget ; and

            (iv)   all Project Permits and Applicable Laws.

     (b)    The Borrower shall not:

            (i)    make or permit any change in the structure or identity of
                   the Contractor;

            (ii)   issue, agree to or agree to any change order in respect of
                   the Construction Works or the designs, technical
                   specifications or plans for the Construction Works,

            without the prior written consent of the Bank.

     (c)    The Borrower shall not abandon the Project.

17.34 OPERATION

     (a)    The Borrower shall procure that the Hotel is operated and maintained
            by the Operator in accordance with:

            (i)    Good Industry Practice;

            (ii)   the requirements relating to the operation in the Project
                   Documents;

            (iii)  the Operating Budget; and

            (iv)   all Project Consents and Applicable Laws.

     (b)    The Borrower shall not replace or allow any change to the identity
            of the Operator without the prior written consent of the Bank.

     (c)    The Borrower shall perform or cause the Operator to perform on a
            timely basis any obligations with respect to the operation,
            maintenance and repair of the Project.

     (d)    The Borrower shall not transfer any shares in the Operator and shall
            procure that the Operator does not issue any further shares to any
            party.

17.35 TIMETABLE

     The Borrower shall procure that:

     (a)    Practical Completion is achieved by the third (3rd) anniversary
            of the Term Sheet Date;

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<PAGE>
     (b)    Project Completion is achieved by the fourth (4th) anniversary of
            the Term Sheet Date; and

     (c)    the Economic Completion Date occurs on or prior to the Economic
            Completion Deadline.

17.36 MAINTENANCE OF PROPERTY

     (a)    The Borrower shall and shall procure that the Operator shall keep
            all of its property and assets useful and necessary in its business
            in good working order and condition (normal wear and tear excepted).

     (b)    The Borrower shall not and shall procure that no other party shall
            use, maintain, operate or occupy or allow the use, maintenance,
            operation or occupancy of any portion of the Site or the Project in
            any manner:

            (i)    which constitutes or may constitute a public or private
                   nuisance;

            (ii)   which may make void, voidable, liable to cancellation or
                   increase the premium of any of the Insurances or Additional
                   Insurances then in force with respect to the Site or the
                   Project or any part thereof; or

            (iii)  otherwise than for the intended purpose thereof in the
                   construction, operation, maintenance and use of the Project.

17.37 COMPLIANCE WITH APPLICABLE LAWS

     The Borrower shall and shall procure that the Operator shall comply with
     all Applicable Laws in respect of the conduct of its business and the
     construction, ownership, operation, maintenance and use of the Project and
     its assets.

17.38 TAXES

     The Borrower shall and shall procure that the Operator shall:

     (a)    file, or procure the filing of, all Tax and informational returns
            that are required to be filed by it in any jurisdiction;

     (b)    pay and discharge, when due, all Taxes and other governmental
            charges imposed on it or its income, property, actions or profits,
            except for Taxes being contested in good faith by the Borrower by
            proper proceedings timely instituted, and for which the Borrower
            sets aside on its books adequate reserves with respect to the
            contested taxes;

     (c)    to the fullest extent it is able to do so, apply any and all Tax
            credits, losses, reliefs or allowances in the manner and to the
            extent that they were so taken into account and promptly inform
            the Bank to the extent that it is not able to do so unless it
            demonstrates to the satisfaction of the Bank that doing

                                       51
<PAGE>
            otherwise would result in a material advantage to the Project and
            could not adversely affect the respective interest of the Bank in
            any way; and

     (d)    not surrender or dispose of any Tax credit, loss, relief or
            allowance.

17.39 BANK'S ADVISORS

     (a)    The Borrower agrees to the Bank's Project Monitor and the Bank's
            Insurance Consultant carrying out their respective roles described
            in the Finance Documents, the relevant Project Documents and their
            respective engagement letters.

     (b)    The Borrower shall cooperate with the Bank's Project Monitor and
            the Bank's Insurance Consultant and any other adviser which the
            Bank may appoint, and to ensure that each such Person will be
            provided with all information reasonably required by such Person
            and will exercise due care to ensure that any information which
            it may supply to such Person is materially accurate and not, by
            omission of information or otherwise, misleading in any material
            respect.

17.40 FURTHER ACTIONS

     The Borrower shall take all further actions and execute and deliver, from
     time to time as reasonably requested by the Bank, at the Borrower's
     expense, such other documents as shall be necessary or advisable or that
     the Bank may reasonably request, in connection with the rights and remedies
     of the Bank granted or provided for by the Transaction Documents, as
     applicable, and to consummate the transactions contemplated therein
     (including, without limitation, actions which are necessary to establish,
     maintain, protect, perfect and continue the Security Interests created
     under the Security Documents).

17.41 FINANCIAL COVENANTS

     On and from the Economic Completion Date:

     (a)    The Borrower shall procure that on the last day of each Interest
            Period (including the last day of the Interest Period immediately
            preceding the Economic Completion Date), the actual Debt Service
            Cover Ratio for the preceding twelve (12) month period ending on the
            previous 30 June or 31 December is no less than 1.2:1;

     (b)    The Borrower shall procure that the RevPar will be not less than
            L74.50 (seventy four pounds and fifty pence).

17.42 DURATION

     The undertakings in Section 17 (Covenants and Undertakings) shall remain in
     force for as long as any amount is or may be outstanding under this
     Agreement or any Commitment is in force.

                                       52
<PAGE>
18.  INSURANCES

18.1 REQUIRED INSURANCES

     (a)    The Borrower shall and shall procure that the Operator shall procure
            and maintain insurance in the sums and on the terms set out in
            Schedule 12 Part 1 (Insurances) (the "INSURANCES") and shall not
            amend any of the Insurances without the prior written consent of the
            Bank.

     (b)    The Borrower shall procure that the amendments to the existing
            Insurances set out in Schedule 12 Part 2 (Insurances - Required
            Amendments) shall be made to the satisfaction of the Bank and the
            Bank's Insurance Consultant within sixty (60) days of the date of
            this Agreement.

18.2 ADDITIONAL INSURANCES

     The Borrower shall and shall procure that the Operator shall procure and
     maintain such additional insurance ("ADDITIONAL INSURANCE") as may
     otherwise be required by the Bank to cover new, materially different or
     increased risks or contingencies arising or occurring after the date of the
     Initial Advance that would be insured by a reasonable and prudent hotel
     business (taking into account the availability of such Additional Insurance
     in the international insurance market on reasonable commercial terms),
     which are not covered to the reasonable satisfaction of the Bank by the
     existing Insurances.

18.3 INSURANCE PREMIUMS

     The Insurances and any Additional Insurances above shall be procured and
     maintained at the expense of the Borrower.

18.4 SUBMISSION OF POLICIES

     (a)    Upon the request of the Bank, the Borrower shall promptly provide a
            schedule indicating the insurance policies maintained or caused to
            be maintained by the Borrower, coverage limits of liability,
            effective dates of coverage, insurance carrier names and policy
            numbers.

     (b)    Each of the policies regarding the Insurances and the Additional
            Insurances shall be submitted to the Bank upon receipt. Upon the
            request of the Bank, the Borrower shall promptly provide the Bank
            and with copies of the insurance contracts relating to the
            Insurances by at least forty (40) days prior to the dates such
            policies are required to come into effect in accordance with such
            Schedule 12 (Insurances). Such policies to be in the English
            language, in form and substance, and issued by companies,
            satisfactory to the Bank.  The Borrower undertakes, at its own
            cost and expense, to procure any reasonable amendments to the
            Insurances and Additional Insurances requested by the Bank or the
            Bank's Insurance Consultant.

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<PAGE>
     (c)    Each of the Insurances and Additional Insurances shall contain
            provisions specifying that any insurance proceeds shall be deposited
            directly into the Insurance Proceeds Account.

18.5 COVENANTS RELATING TO INSURANCE

     (a)    The Borrower shall ensure that the Bank shall be named as additional
            beneficiary under the Insurances and Additional Insurances without
            the right of subrogation.

     (b)    The underwriter of each of the policies of the Insurances and
            Additional Insurances shall undertake in the above-mentioned
            policies to provide the Bank with at least thirty (30) days written
            notice prior to the expiry or cancellation of any of the said
            insurance policies or of any proposed alteration to such policies.

     (c)    The list of Insurances shall not prevent the Borrower, at its own
            cost, from taking out such additional insurances which it deems
            appropriate at its discretion, nor shall it relieve the Borrower of
            the responsibility to take out such additional insurances which may
            become accepted practice in the future.

     (d)    Without prejudice to the preceding provisions, the Borrower shall,
            at its own cost, from time to time take out and maintain all other
            insurances which the Borrower is required to effect by any
            Applicable Law.

     (e)    If the Borrower fails to take out or maintain in force any of the
            insurances required by this Section 18 (Insurances), the Bank
            shall be entitled (without prejudice to its other rights and
            remedies for the breach) to take out and maintain such part of
            all of those policies as it considers (in its complete
            discretion) appropriate and to recover the cost of doing so
            (including payment of premiums, reasonable administration and
            other expenses and charges) from the Borrower as a debt due on
            demand.

     (f)    The Borrower shall comply with the conditions stipulated in each of
            the policies for the Insurances and Additional Insurances.

     (g)    The Borrower shall not make any material alteration to the terms of
            any of the insurance policies for the Insurances and Additional
            Insurances or do or permit to be done any act or omission the effect
            of which would be to void such policies, without the prior approval
            of the Bank.

     (h)    The provisions of this Section 18 (Insurances) shall be deemed
            supplemental to, the provisions of the Transaction Documents that
            require the maintenance of insurances. In the event that any
            insurance whatsoever is purchased, taken or otherwise obtained by
            the Borrower with respect to the Project otherwise than as
            required hereunder or if not properly endorsed to the Bank as the
            sole loss payee or beneficiary or otherwise made upon the terms
            required in this Section 18 (Insurances), such insurance shall be
            considered assigned by the

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            Borrower hereunder to the Bank with the right of the Bank to make,
            settle, compromise and liquidate any and all claims thereunder,
            without prejudice to the exercise of any other rights and remedies
            that the Bank may have under any of the Transaction Documents, or
            under any Applicable Law.

18.6 INSURANCE PROCEEDS

     (a)    The Bank shall be the first loss payee of all Insurance Proceeds.

     (b)    The Insurance Proceeds shall be applied (unless the Bank otherwise
            specifies) in accordance with the Insurance Proceeds Letter. In the
            event that Insurance Proceeds are received prior to the execution of
            the Insurance Proceeds Letter, such Insurance proceeds shall be paid
            into the Insurance Proceeds Account until such time as the Insurance
            Proceeds Letter is completed.

19.  ACCOUNTS

19.1 OPERATION OF ACCOUNTS

     (a)    The Borrower shall procure that the following accounts shall be
            opened and maintained at the Facility Office or such other bank or
            branch as the Bank may approve:

            (i)    a Project Account, in the name of the Borrower;

            (ii)   a Loan Account, in the name of the Borrower;

            (iii)  a Debt Service Reserve Account, in the name of the
                   Borrower;

            (iv)   an Insurance Proceeds Account in the name of the Borrower;
                   and

            (v)    an Operating Account, in the name of the Operator,

            and such other accounts as the Bank may from time to time require
            (the "ACCOUNTS").

     (b)    The provisions of this Section 19 (Accounts) shall govern the
            operation of the Accounts provided that:

            (i)    the Borrower shall all complete the Bank's standard
                   account opening forms for each of the Accounts; and

            (ii)   subject to the terms of this Agreement, the Bank's standard
                   terms and conditions applicable from time to time shall apply
                   to the Accounts.

     (c)    The Bank may require the Borrower to open and maintain additional
            accounts in order to deal with any category of payment not
            contemplated in this Section 19 (Accounts). In such case, the Bank
            and the Borrower shall agree upon the

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            procedures and rules to govern such account in a supplement to this
            Section 19 (Accounts). Any such account shall be deemed an Account.

     (d)    The Borrower undertakes to ensure that no Account is closed without
            the prior written consent of the Bank. The Borrower further
            undertakes to ensure that it does not establish or maintain any
            other account at any other bank or financial institution without the
            prior written consent of the Bank.

19.2 GENERAL INSTRUCTIONS

     (a)    No amounts may be withdrawn or transferred from any of the Accounts,
            and the Borrower may not give any instructions in relation to any of
            the Accounts, except in accordance with the express terms of this
            Agreement.

     (b)    No Account may go into overdraft and the Borrower shall not issue an
            instruction with respect to an Account, and the Bank shall not
            comply with an instruction, to the extent that it would cause the
            relevant Account to go into overdraft.

     (c)    At any time a Default has occurred or is continuing, the Borrower
            shall not make any withdrawals from the Accounts.

     (d)    All amounts withdrawn from an Account for a specific purpose or for
            payment or satisfaction of a specific liability may be used solely
            for such purpose or payment.

     (e)    Each Account shall earn interest at such rate(s) as may be agreed
            from time to time by the Borrower and Bank, which shall in any event
            be the most favourable given to similar customers for similar
            deposit over similar periods. All interest earned on the balance
            standing to the credit of an Account shall be credited to the
            Account in question and the Bank is irrevocably authorised and
            instructed so to credit such interest.

     (f)    The Borrower may require that sums standing to the credit of any
            Account be invested in short term deposits, in currencies and
            maturities that match the then current liabilities of the Borrower.

     (g)    The Borrower shall not create or permit to subsist any Security
            Interest on all or any part of the Accounts, other than any Security
            Interests created by the Security Documents, nor assign, transfer or
            otherwise dispose of all or any part of its right or title to or
            interest in the Accounts.

     (h)    The Borrower acknowledges that neither any insufficiency of funds in
            the Accounts, (or any of them), nor any inability to apply any funds
            in the Accounts (or any of them) against any or all amounts owing
            under this Agreement, shall at any time limit, reduce or otherwise
            affect the Borrower's payment obligations under this Agreement.

19.3 LOAN ACCOUNT

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     (a)    The Bank shall provide that all Advances are paid into the Loan
            Account and made available for withdrawal by the Borrower through
            the Project Account subject to the conditions set forth in Section
            19.3 (Project Account).

19.4 PROJECT ACCOUNT

     (a)    The Borrower shall procure that the following will be paid into the
            Project Account:

            (i)    the proceeds of each Advance;

            (ii)   all amounts advanced to the Borrower under the Shareholder
                   Loan Agreements;

            (iii)  all amounts advanced to the Borrower as Equity
                   contributions;

            (iv)   all Insurance Proceeds;

            (v)    all proceeds of any warranty, indemnify or other claims,
                   damages, refunds or other settlements received by the
                   Borrower from any Project Party in relation to the Project.

     (b)    Amounts paid into the credit of the Project Account may only be
            withdrawn by the Borrower for the following purposes:

            (i)    repaying any amounts due to the Bank pursuant to the
                   Finance Documents;

            (ii)   funding the Debt Service Reserve Account in the accordance
                   with Clause 19.6 (Debt Service Reserve Account); and

            (iii)  making payments to the Shareholders as permitted in
                   accordance with Clause 17.29 (Distributions) and Clause 17.30
                   (Shareholder Loans); and

            (iv)   paying fees to the Project Parties in accordance with the
                   provisions of the Project Documents and this Agreement;
                   and

            (v)    paying rent to the lessors pursant to the lease agreements
                   pertaining to the Site; and

            (vi)   as the Bank may otherwise permit in writing.

19.5 OPERATING ACCOUNT

     (a)    The Borrower will procure that the Operator will establish and
            maintain an Operating Account denominated in Sterling in the name of
            Operator at a bank

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            acceptable to the Bank within six (6) months of the date of this
            Agreement which account shall be charged by way of a first ranking
            charge to the Bank.

     (b)    The Borrower will procure that the Operator promptly deposit in such
            account all trading receipts and other revenues arising to the
            Operator or on its behalf in connection with the Hotel.

     (c)    Amounts standing to the credit of the Operating Account may be
            withdrawn by the operator or on behalf of the Borrower only for the
            purpose of:

            (i)    repaying any amounts due to the Bank pursuant to the
                   Finance Documents;

            (ii)   paying any costs and expenses properly incurred in the day
                   to day operation of the Hotel; or

            (iii)  paying fees due to the Management Company in accordance with
                   the provisions of the Hotel management undertaking or such
                   other management company as shall be appointed in accordance
                   with the terms of this Agreement or otherwise with the prior
                   written consent of the Bank; or

            (ii)  paying rent to the Borrower pursuant to the Lease; and

            (v)    as the Lender may otherwise permit.

     (d)    The Borrower shall procure that any amount in excess of the amount
            necessary to pay budgeted costs and expenses for the day to day
            operation of the Hotel for the following three month period are
            transferred on a monthly basis to the Project Account.

19.6 DEBT SERVICE RESERVE ACCOUNT

     (a)    The Borrower shall, following Advance of the B Loan and until
            receipt of written confirmation from the Bank that all amounts
            due hereunder have been paid, deposit in the Debt Service Reserve
            Account all of its Operating Profits until such time as there
            shall be standing to the credit of the Debt Service Reserve
            Account shall be an amount equal to all payments of principal and
            interest due pursuant to this Agreement for the forthcoming
            twelve (12) month period are deposited in the Debt Service
            Reserve Account.

     (b)    No amount maybe withdrawn from the Debt Service Reserve Account
            without the prior written consent of the Bank.

     (c)    The Bank shall be entitled to apply any amounts standing to the
            credit of the Debt Service Reserve Account in repayment of amounts
            outstanding hereunder upon an Event of Default.

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19.7 INSURANCE PROCEEDS ACCOUNT

     (a)    The Borrower shall deposit Insurance Proceeds in the Insurance
            Proceeds Account in accordance with Section 18.6(b)(ii) and (iii)
            and such Insurance Proceeds shall be applied in accordance with the
            provisions set out therein.

     (b)    The Insurance Proceeds Account shall be pledged in favour of the
            Bank by way of first ranking fixed charge within sixty (60) days of
            the date of this Agreement.

20.  DEFAULT

20.1 EVENTS OF DEFAULT

     Each of the events set out in Section 20.1 to 20.21 (inclusive) of this
     Section 20 is an Event of Default (whether or not caused by any reason
     whatsoever outside the control of the Borrower or any other person).

20.2. NON-PAYMENT

     The Borrower does not, for whatever reason, within three (3) Business Days
     of the due date pay any amount payable by it under this Agreement or any
     other Finance Document at the place and in the currency in which it is
     expressed to be payable.

20.3 BREACH OF OTHER OBLIGATIONS

     (a)    The Borrower does not comply with any of the following provisions
            of Section 4.3 (Conditions Subsequent), 17.18 (Pari passu
            ranking), 17.19 (Negative pledge), 17.21 (Transactions similar to
            security), 17.22 (Disposals), 17.23 (Borrowings and Guarantees),
            17.26 (Mergers and Acquisitions), 17.28 (Share capital), 17.29
            (Distributions), 17.30 (Shareholder Loans), 17.32 (Project
            Documents), 17.33 (Construction), 17.34 (Operation), 17.35
            (Timetable), 17.41 (Financial covenants) or Section 18
            (Insurances) of this Agreement.

     (b)    The Borrower does not comply with any provision of any Finance
            Document (other than those referred to in Sections 20.2
            (Non-Payment) and 20.3(a) (Breach of other obligations) above and,
            if capable of remedy in the opinion of the Bank, that breach is not
            remedied within fifteen (15) days.

20.4 MISREPRESENTATION

     A representation, warranty or statement made or repeated by the Borrower or
     any Obligor under any Finance Document is incorrect in any material respect
     when made or deemed to be made or repeated.

20.5 CROSS DEFAULT

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     (a)    Any Financial Indebtedness of the Borrower or any Obligor is not
            paid when due after giving effect to any grace period applicable
            thereto;

     (b)    An event of default howsoever described (or any event which with the
            giving of notice, lapse of time, determination of materiality or
            fulfilment of any other applicable condition or any combination of
            the foregoing would constitute such an event of default) occurs
            under any document relating to Financial Indebtedness of the
            Borrower or any Obligor;

     (c)    Any Financial Indebtedness of the Borrower or any Obligor becomes
            prematurely due and payable and is placed on demand as a result of
            an event of default (howsoever described) under the document
            relating to that Financial Indebtedness;

     (d)    Any commitment for, or underwriting of, any Financial Indebtedness
            of the Borrower or any Obligor is cancelled or suspended as a result
            of an event of default (howsoever described) under the document
            relating to that Financial Indebtedness; or

     (e)    Any Security Interest securing Financial Indebtedness over any
            asset of the Borrower or any Obligor becomes enforceable,

     provided that it shall not be an Event of Default under this Clause 20.5
     (Cross Default) where any of the foregoing has occurred with respect to any
     party other than the Borrower and such event, in the judgment of the Bank,
     has not had and is not reasonably likely to have a Material Adverse Effect.

20.6 INSOLVENCY

     The Borrower or any Obligor:

     (a)    commits an act of bankruptcy, is, or is deemed for the purposes of
            any law to be, unable to pay its debts as they fall due or to be
            insolvent, or admits inability to pay its debts as they fall due; or

     (b)    suspends making payments on all or any class of its debts or
            announces an intention to do so, or a moratorium is declared in
            respect of any of its indebtedness,

      provided that it shall not be an Event of Default under this Clause 20.6
      (Insolvency) where any of the foregoing has occurred with respect to any
      party other than the Borrower and such event, in the judgment of the Bank,
      has not had and is not reasonably likely to have a Material Adverse
      Effect.

20.7  INSOLVENCY PROCEEDINGS

     (a)    A resolution for the winding-up, entry into receivership or
            administration of the Borrower or any Obligor is passed at a meeting
            of the Borrower or any Obligor.

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     (b)    Any person presents a petition which is not withdrawn or set aside
            within ninety (90) days for the winding-up, bankruptcy,
            receivership, reorganisation or for the administration of the
            Borrower or any Obligor.

     (c)    An order (provisional or otherwise) for the winding-up or
            administration of the Borrower or any Obligor is made.

            provided that it shall not be an Event of Default under this Clause
            20.7 (Insolvency proceedings) where any of the foregoing has
            occurred with respect to any party other than the Borrower and such
            event, in the judgment of the Bank, has not had and is not
            reasonably likely to have a Material Adverse Effect.

20.8 APPOINTMENT OF RECEIVERS AND MANAGERS

     (a)    Any liquidator, trustee in bankruptcy, judicial custodian,
            compulsory manager, permanent or interim receiver, administrator or
            the like is appointed in respect of the Borrower or any Obligor or
            any material part of their respective assets.

     (b)    The directors of the Borrower or any Obligor request the appointment
            of a permanent or interim liquidator, trustee in bankruptcy,
            judicial custodian, compulsory manager, interim or permanent
            receiver, administrator or the like.

            provided that it shall not be an Event of Default under this Clause
            20.8 (Appointment of receivers and manager) where any of the
            foregoing has occurred with respect to any party other than the
            Borrower and such event, in the judgment of the Bank, has not had
            and is not reasonably likely to have a Material Adverse Effect.

20.9 CREDITORS' PROCESS

     Any execution, attachment, sequestration, or other process affecting any
     material asset of the Borrower or any Obligor, provided that in the event
     such process is being contested in good faith by appropriate proceedings
     such process shall constitute an Event of Default only ninety (90) days
     after its initiation if it has yet to be discharged.

     provided that it shall not be an Event of Default under this Clause 20.9
     (Creditor's process) where any of the foregoing has occurred with respect
     to any party other than the Borrower and such event, in the judgment of the
     Bank, has not had and is not reasonably likely to have a Material Adverse
     Effect.

20.10 ILLEGALITY

     (a)    It is or becomes unlawful for any member of the Borrower or any
            Obligor to perform any of its their respective obligations under the
            Transaction Documents.

     (b)    It is or becomes unlawful for any person (other than the Bank) to
            perform any of its obligations under the Transaction Documents.

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     (c)    Any authorisation required in relation to the performance, validity
            or enforceability of any Transaction Document is revoked or amended
            in a manner or to an extent that has a Material Adverse Effect.

20.11 EFFECTIVENESS OF SECURITY

     (a)    Any Security Document entered into by an Obligor is not effective or
            is alleged by such Obligor to be ineffective for any reason.

     (b)    If the Bank shall be of the opinion that any Collateral has become
            or is likely to become damaged or has lost or is likely to lose a
            material portion of its value.

20.12 PROJECT DOCUMENTS

     (a)    Any party to a Project Document does not comply with any provision
            of that Project Document, in a manner or to an extent that has a
            Material Adverse Effect.

     (b)    Any Project Document is repudiated by a party thereto or is or
            becomes void or unenforceable.

     (c)    Any obligation assumed by a party under a Project Document ceases to
            be a valid and binding obligation of, or is repudiated by, that
            party or becomes void or unenforceable.

     (d)    Any Project Document terminates in each case otherwise than by
            reason of full performance of the Project Document or expiry of its
            term.

20.13 ABANDONMENT

     The Borrower abandons all or a material part of the Project.

20.14 NATIONALISATION

     Any step is taken by a government body with a view to the seizure,
     expropriation or nationalisation of all or a material part of the Project.

20.15 EVENT OF LOSS

     (a)    There is a loss of any substantial part of the Project or the use
            thereof due to destruction or substantial loss or damage, which is
            uninsured or which available proceeds of insurance including
            government insurance are inadequate to repair; or

     (b)    An event, circumstance or condition occurs which results in an
            insurance settlement with respect to any substantial part of the
            Project on the basis of a total loss or constructive total loss.

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20.16 PROJECT PERMITS

     Any Project Permit required in relation to the Project or the entry into
     performance, validity or enforceability of any Project Document is amended,
     suspended or revoked and has not been restored within a period of thirty
     (30) days thereof.

20.17 OWNERSHIP OF THE BORROWER

     (a)    Any change in the ownership of the Borrower or the Operator, except
            with the prior consent of the Bank.

     (b)    Elscint shall cease to own at least 51% of BEA Hotels N.V.

     (c)    The Papouchado family shall cease to beneficially own at least
            51% of Euro Sea Hotels. N.V.

20.18 FORCE MAJEURE

     Upon the occurrence and continuance of an event of Force Majeure for a
     period which would allow any person (other than the Borrower) to exercise a
     right of termination under any Project Document.

20.19 INSURANCE

     Any Insurance required in accordance with the Transaction Documents:

     (a)    is not or ceases to be in full force and effect and has not been
            replaced in accordance with the Transaction Documents prior
            thereto; or

     (b)    is avoided or any insurer is or will be entitled to avoid or
            otherwise materially reduce its liability under any policy relating
            thereto or any insurer repudiates or will be entitled to repudiate
            any Insurance or any Security Interests of the Bank therein (unless
            before such avoidance, reduction, or repudiation, the Borrower
            replaces such insurer with the result that such avoidance,
            reduction, or repudiation is prevented).

20.20 LEASE AND APPOINTMENT OF MANAGEMENT COMPANY

     At least nine (9) months prior to Practical Completion:

     (a)    the Borrower or the Operator shall have entered into an agreement
            with a third party acceptable to the Bank on terms satisfactory to
            the Bank for the management of the Hotel;

     (b)    simultaneously within the execution of the management agreement
            pursuant to (a) above, the Borrower shall procure that the
            management company enters into a direct agreement with the Bank, on
            terms and in a form satisfactory to the Bank; and

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            (c)   the Borrower and the Operator shall have entered into the
                  Lease which shall be charged in favour of the Bank in form and
                  substance satisfactory to the Bank.

20.21 MATERIAL ADVERSE EFFECT

     Any event, condition or circumstance or series of events, conditions or
     circumstances occurs which, in the opinion of the Bank, has had or could
     reasonably be expected to have a Material Adverse Effect.

20.22 ACCELERATION; OTHER REMEDIES

     On and at any time after the occurrence of an Event of Default (which is
     continuing, unremedied and unwaived) the Bank may by notice to the
     Borrower:

     (a)    cancel the undrawn part of the Facility; and/or

     (b)    demand that all or part of the Advances, together with accrued
            interest and all other amounts accrued under the Finance Documents
            be immediately due and payable, whereupon they shall become
            immediately due and payable; and/or

     (c)    demand that all or part of the Advances together with accrued
            interest and all other amounts accrued under the Finance Documents
            be payable on demand, whereupon they shall immediately become
            payable on demand by the Bank; and/or

     (d)    give any notice regarding the payment of Insurance Proceeds in
            accordance with Section 18.6 (insurance Proceeds);

     (e)    proceed to enforce or exercise any or all of the rights, remedies
            and powers available to it under all or any of the Transaction
            Documents and to enforce all or any remedies thereunder in
            accordance with Applicable Law.

21.  FEES

21.1 PREPARATION FEE

     The Borrower shall pay the Bank a preparation fee equal to 0.25% of the
     Facility upon the drawdown of the Initial Advance.

21.2 COMMITMENT FEE

     The Borrower shall:

     (a)    as regards the A Loan, pay to the Bank a commitment fee at the rate
            of 0.25% per annum for the period from the date of this Agreement,
            up to and including the last Day of the A Loan Availability Period.

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     (b)    The fee shall accrue from day to day and be calculated on the daily
            undrawn balance of the A Loan.

     (c)    The calculation shall, in each case, be made on the basis of the
            actual number of days elapsed on a 360 day year.

     (d)    The fees shall be payable in arrears on each Interest Due Date with
            the accrued fee up to the date of this agreement payable upon the
            drawdown of the Initial Advance.

21.3 ADVISERS' FEES

     The Borrower shall pay the costs and expenses of all third party advisers
     appointed by the Bank (including, without limitation, Bank's Project
     Monitor, the Bank's Insurance Consultant and legal advisers).

21.4 VAT

     Any fee referred to in this Section 21 (Fees) is exclusive of any value
     added tax or any other Tax which might be chargeable in connection with
     that fee. If any value added tax or other Tax is so chargeable, it shall be
     paid by the Borrower at the same time as it pays the relevant fee.

22.  COSTS AND EXPENSES

22.1 INITIAL AND SPECIAL COSTS

     The Borrower shall forthwith on demand pay the Bank the amount of all costs
     and expenses (including legal fees) incurred by the Bank for the services
     of external advisers, in connection with:

     (a)    the review of the Transaction Documents and any other agreements
            to which the Borrower is or becomes a party;

     (b)    the negotiation, preparation, printing and execution of:

            (i)    this Agreement and any other documents referred to in this
                   Agreement; and

            (ii)   any other Finance Document executed after the date of this
                   Agreement; and

     (c)    any amendment, waiver, consent or suspension of rights (or any
            proposal for any of the foregoing) requested by or on behalf of the
            Borrower and relating to a Transaction Document or a document
            referred to in any Transaction Document;

     (d)    any refinancing which the Borrower may seek to enter into.

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22.2 ENFORCEMENT COSTS

     The Borrower shall forthwith on demand pay to the Bank the amount of all
     costs and expenses (including legal fees) incurred by the Bank for the
     services of external advisers, in connection with:

     (a)    the enforcement of, or the preservation of any rights under, any
            Finance Document; or

     (b)    in investigating any possible Default.

22.3 RETENTION

     The Bank may:

     (a)    retain sums from any Advance; or

     (b)    apply amounts held in the Accounts;

     toward payment in full of any costs and expenses referred to in this
     Section 22 (Costs and Expenses) and Section 23 (Stamp Duties).

23.  STAMP DUTIES

     The Borrower shall pay, and forthwith on demand indemnify the Bank against
     any liability it incurs in respect of, any stamp, registration and similar
     tax which is or becomes payable in connection with the entry into,
     registration, recording performance or enforcement of any Finance Document.

24.  INDEMNITIES

24.1 CURRENCY INDEMNITY

     (a)    If the Bank receives an amount in respect of the Borrower's
            liability under the Finance Documents or if that liability is
            converted into a claim, proof, judgment or order in a currency other
            than the currency (the "CONTRACTUAL CURRENCY") in which the amount
            is expressed to be payable under the relevant Finance Document:

            (i)    the Borrower shall indemnify the Bank as an independent
                   obligation against any loss or liability arising out of
                   or as a result of the conversion;

            (ii)   if the amount received by the Bank, when converted into the
                   contractual currency at a market rate in the usual course of
                   its business is less than the amount owed in the contractual
                   currency, the Borrower shall forthwith on demand pay to the
                   Bank an amount in the contractual currency equal to the
                   deficit; and

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            (iii)  the Borrower shall forthwith on demand pay to the Bank
                   concerned any exchange costs and taxes payable in connection
                   with any such conversion.

     (b)    The Borrower waives any right it may have in any jurisdiction to pay
            any amount under the Finance Documents in a currency other than that
            in which it is expressed to be payable.

24.2 PAYMENT INDEMNITIES

     (a)    In the event that any payment of principal is received by the
            Bank from any source otherwise than on the relevant Payment Date
            or any payment of interest or any other overdue amount is
            received by the Bank from any source otherwise than on the
            relevant Interest Due Date relative to the amount so received,
            the Borrower shall forthwith on demand (which shall include
            details of the loss or liability incurred) indemnify the Bank
            against the loss or liability by the Bank due to such payment
            being made other than on the relevant Payment Date or Interest
            Due Date.

     (b)    The Borrower's liability includes any loss of margin or other loss
            or expense on account of funds borrowed, contracted for or utilised
            to fund or maintain the contribution of the Bank to any amount
            payable under any Finance Document, any amount repaid or prepaid or
            any or all of the Advances.

24.3 OTHER INDEMNITIES

     (a)    The Borrower shall forthwith on demand (which shall include details
            of the loss or liability incurred) indemnify the Bank against any
            loss or liability properly incurred that the Bank incurs as a
            consequence of:

            (i)    the occurrence of any Event of Default or Potential
                   Default;

            (ii)   the operation of Section 20.21 (Acceleration; Other
                   Remedies);

            (iii)  an Advance not being made after the Borrower has delivered an
                   Advance Request for the Advance, or any Advance (or part
                   thereof) not being prepaid in accordance with a notice of
                   prepayment; or

            (iv)   any Environmental Claim or any actual or alleged breach of
                   any Environmental Law or Environmental Licence to the extent
                   that the loss or liability incurred by the Bank would not
                   have arisen if this Agreement or any of the other Finance
                   Document had not been executed.

     (b)    The Borrower's liability in each case includes any loss of margin,
            profit or other loss or expense on account of funds borrowed,
            contracted for or utilised to fund or maintain the contribution of
            the Bank to any amount payable under any Finance Document, any
            amount repaid or prepaid or any or all of the Advances.

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25.  EVIDENCE AND CALCULATIONS

25.1 ACCOUNTS

     Accounts maintained by the Bank in connection with the Agreement are prima
     facie evidence of the matters to which they relate.

25.2 CERTIFICATES AND DETERMINATIONS

     Any certification or determination by the Bank of a rate or amount under
     the Finance Documents is, in the absence of manifest error, prima facie
     evidence of the matters to which it relates.

26.  AMENDMENTS AND WAIVERS

26.1 AMENDMENTS

     Any term of the Finance Documents may be amended or waived with the
     prior written consent of the Borrower and the Bank. Bank

26.2 WAIVERS AND REMEDIES CUMULATIVE

     The rights of the Bank under the Finance Documents:

     (a)    may be exercised as often as necessary;

     (b)    are cumulative and not exclusive of their rights under the
            general law; and

     (c)    may be waived only in writing and specifically.

     Delay in exercising or non-exercise of any such right is not a waiver of
     that right.

27.  CHANGES TO THE PARTIES

27.1 TRANSFERS BY BORROWER

     The Borrower may not assign, transfer or dispose of any interest, rights or
     obligations under the Finance Documents except with the prior written
     consent of the Bank.

27.2 ASSIGNMENTS AND TRANSFERS BY BANK

     (a)    The Bank may, subject to Section 27.2(b) below, at any time assign
            and transfer any part of the Facility and/or any of its rights
            and/or obligations under this Agreement to another bank or financial
            institution.

     (b)    If, as a result of any such assignment, transfer or novation, the
            Bank will no longer remain responsible under this Agreement, the
            Borrower shall be

                                       68
<PAGE>
            entitled, notwithstanding the provisions of Section 7.2, to prepay
            all Advances on the last day of any Interest Period without
            incurring any prepayment fee.

     (c)    The Borrower shall execute and do all such transfers,
            assignments, novations, assurances, acts and things as the Bank
            may require for perfecting and completing any such assignment,
            transfer or novation, and releasing the Bank from and imposing on
            the Assignee Lender the Bank's obligations under this Agreement
            to the extent the same are transferred, assigned or novated.  All
            agreements, representations and warranties made in this agreement
            shall survive any assignment made pursuant to this clause and
            shall also inure to the benefit of all Assignee Lenders.

      (d)   The Borrower shall not be under greater liability under Clause 12.1
            (Gross Up) or Clause 14 (Increased Costs) in the case of an
            assignment or transfer by the Bank than it would have been in the
            absence of the assignment or transfer. The greater liability should
            be tested only at the time of the assignment or transfer, so that,
            if subsequent thereto, taxes are imposed or increased costs arise,
            the assignee or transferee is not limited.

28.  DISCLOSURE OF INFORMATION

28.1 DISCLOSURE

     The Bank may disclose to any one of its Affiliates or any person with whom
     it is proposing to enter, or has entered into, any kind of transfer,
     participation or other agreement in relation to this Agreement:

     (a)    a copy of any Transaction Document; and

     (b)    any information which such person has acquired under, in connection
            with or in relation to any Transaction Document or any interest of
            such person therein.

29.  SET-OFF

     (a)    The Bank shall have the right of possession, lien and set-off
            over any amounts, assets and rights including gold, securities,
            coins, bank notes, documents in respect of goods, insurance
            policies, bills, assignments of rights, deposits, collaterals and
            their countervalue held at the Bank at any time for the Borrower
            or on the Borrower's behalf including such as have been delivered
            to the bank for collection, security, safe-keeping or otherwise.
            The Bank shall be entitled to retain the said assets until
            payment in full of the above sums or to realize the by selling
            them and applying the countervalue thereof in whole or in part to
            the payment of the above sums.

     (b)    Without derogating from the Bank's right of lien in accordance with
            sub-section (a) above, the Bank may at any time, but shall not be
            obliged:

            (i)    to apply to any amounts owed by the Borrower, any amounts
                   owed to the Borrower by the Bank in any account or manner or
                   for any reason

                                       69
<PAGE>
                   (even before the maturity of the amounts owed to the Borrower
                   by the Bank as aforesaid).

            (ii)   to purchase for the Borrower's account, any amount in foreign
                   currency which may be required for payment of any of the
                   amounts owed by the Borrower, or to sell any foreign currency
                   standing to the Borrower's credit at the Bank and to apply
                   the proceeds to the payments of any of the amounts owed by
                   the Borrower.

            (iii)  to debit any of the Borrower's accounts with any of the
                   amounts owed by the Borrower, irrespective of whether the
                   Borrower has been called upon to effect payment thereof
                   pursuant hereto or not.

            (iv)   In any event the Bank may effect set-off without any prior
                   notice. However, in the following cases, the Bank may effect
                   such set-off by giving the Borrower 10 (ten) days' notice
                   prior to effecting such set-off:

                   (1)    in case of applying any amounts prior to their
                          maturity.

                   (2)    in case of applying any time deposit which but for
                          such application would have been automatically
                          extended or renewed, so that certain rights or benefit
                          would have accrued to me.

                   (3)    notwithstanding sub-section (b)(v)(1) above, if the
                          delay in effecting such application might be
                          detrimental to the Bank or affect any of its rights,
                          such application may be made immediately. Moreover,
                          where notice has been sent to the Borrower and in the
                          course of the 10 day period an attachment order or a
                          receivership notice affecting the Borrower is received
                          or a similar event occurs, such application may be
                          made immediately.

            (v)    Any purchase or sale under sub-section (b)(ii) above, shall
                   be effected at the rate of exchange prevailing at the Bank,
                   out of the amounts in Israeli currency or foreign currency,
                   as the case may be, standing to the Borrower's credit at the
                   Bank, or which may be obtained by realizing collaterals given
                   or which may have been given by the Borrower to the Bank.

                   The term "the rate prevailing at the Bank" shall mean, with
                   respect to any purchase of foreign currency for the
                   Borrower's account, the highest rate for cheques and
                   transfers at which the Bank at any relevant time generally
                   sells to its customers the relevant foreign currency against
                   Israeli currency, in addition to any conversion charge, tax,
                   levy, compulsory payments or any other similar payments; and
                   with respect to any sale of foreign currency from the
                   Borrower's account, the lowest rate for cheques and transfers
                   at

                                       70
<PAGE>
                   which the Bank at any relevant time generally purchases from
                   its customers the relevant foreign currency against pounds
                   sterling, after deducting any conversion charge, tax, levy,
                   compulsory payments or any other similar payments.

     (c)    The Borrower hereby instructs and authorizes the Bank to debit from
            time to time the Loan Account and the Revenue Account with the
            amount required to pay the above sums.

            These instructions and authorization do not derogate from the Bank's
            right to debit the Loan Account and the Revenue Account as provided
            in this Section 28. If the state of the Loan Account and the Revenue
            Account does not allow it to be debited by the Bank in order to
            effect final payment of any amount on account of the above sums, the
            Bank may disregard the Borrower's instructions and authorization and
            if the Bank has acted accordingly, the Bank may reverse any such
            debit and treat any amount the debit of which was reversed as an
            unpaid amount on account of the above sums and accordingly to take
            whatever action it sees fit pursuant to the provisions hereof.

     (d)    The Bank shall be entitled at any time to debit any of the
            Borrower's accounts (including such accounts held by the Borrower
            jointly and severally with other parties) with any sum due or which
            shall be due from the Borrower in any way and apply any sums
            received from or for the Borrower, to whichever account it may see
            fit and to pass any amount standing to my credit to any other
            account, as it may see fit.

30.  SEVERABILITY

     If a provision of any Finance Document is or becomes illegal, invalid or
     unenforceable in any jurisdiction, that shall not affect:

     (a)    the validity or enforceability in that jurisdiction of any other
            provision of the Finance Documents; or

     (b)    the validity or enforceability in other jurisdictions of that or
            any other provision of the Finance Documents.

     Where provisions of any Applicable Law resulting in such illegality,
     invalidity or unenforceability may be waived, they are hereby waived by
     Borrower and the Bank to the full extent permitted by Applicable Law so
     that the Finance Documents shall be deemed valid and binding agreements, in
     each case enforceable in accordance with their respective terms.

31.  COUNTERPARTS

     Each Finance Document may be executed in any number of counterparts, and
     this has the same effect as if the signatures on the counterparts were on a
     single copy of the Finance Document.

                                       71
<PAGE>
32.  NOTICES

32.1 GIVING OF NOTICES

     All notices or other communications under or in connection with the Finance
     Documents shall be given in writing and, unless otherwise stated may be
     made by letter or facsimile. Any such notice will be deemed to be given as
     follows:

     (a)    if by letter, when delivered personally or on actual receipt;

     (b)    if by facsimile, when received in legible form.

     However, a notice given in accordance with the above but received on a
     non-working day or after business hours in the place of receipt will only
     be deemed to be given on the next working day in that place.

32.2 ADDRESSES FOR NOTICES

     (a)    The address and facsimile number of each Party (other than the
            Borrower and the Bank) for all notices under or in connection with
            the Finance Documents are:

            (i)    Bank those notified by that Party for this purpose to the
                   Bank on or before the date it becomes a Party; or

            (ii)   any other notified by that Party for this purpose to the Bank
                   by not less than five Business Days' notice.

     (b)    The address and facsimile number of the Borrower are:

            Riverbank Hotel Holding B.V.
             Dufaystraat 5-hs
            1075 GR AmsterdamThe Netherlands

            Attention:  Mr. Chen Moravsky
            Facsimile:  +31-20-305 8355

            or such other as the Borrower may notify to the Bank by not less
            than five Business Days' notice.

     (c)    The address and facsimile number of the Bank are:

            Bank Hapoalim B.M.
            8/12 Brook Street
            London W1Y 1AA
            Attention:
            Facsimile:

                                       72
<PAGE>
            with a copy to:

            Herzog, Fox & Neeman
            Asia House
            4 Weizmann Street
            Tel Aviv, Israel

            Attention:  Alan Sacks
            Facsimile:  +972 3 696 6464

            or such other as the Bank may notify to the other Parties by not
            less than 5 Business Days' notice.

33.  LANGUAGE

     All documents to be furnished, delivered or provided and all other
     communications to be given or made under or in connection with the Finance
     Documents shall be in English.

34.  SURVIVAL

     All indemnities set forth in any of the Finance Documents or Equity
     Documents shall survive the execution and delivery of each such Finance
     Document and Equity Document, any cancellation or termination of any of the
     Commitments, the termination of any Finance Document or Equity Document,
     the making and repayment of the Advances and the Notes and any transfer of
     the Notes or the rights and obligations of the Bank under any Finance
     Document or Equity Document.

35.  BORROWER IN CONTROL

     In no event shall the rights and interests of any Finance Party under the
     Transaction Documents be construed to give any such party, or be deemed to
     indicate that any such party has, control of the business, management or
     properties of the Borrower or power over the daily management functions and
     operating decisions made by Borrower.

36.  GOVERNING LAW AND JURISDICTION

36.1 LAW

     This Agreement and all disputes and matters relating hereto shall be
     governed by and construed in accordance with the laws of England.

36.2 JURISDICTION

     The Borrower irrevocably agrees for the benefit of the Bank that any legal
     action arising out of or relating to this agreement may be brought in the
     Royal Courts of Justice, England and irrevocably submits to the
     non-exclusive jurisdiction of such

                                       73
<PAGE>
     courts and, without prejudice to the foregoing, further submits to the
     non-exclusive jurisdiction of such other courts as shall be designated by
     the Bank as being an appropriate forum.

36.3 PROCESS AGENT

     The Borrower irrevocably appoints Mr. Ron Mehditache of 10 Albert
     Embankment, London, SE1 7SP, United Kingdom as its agent to receive and
     acknowledge on its behalf service of any writ, summons, order, judgment or
     other notice of legal process in England. If for any reason the agent named
     above (or its successor) no longer serves as agent of the Borrower for this
     purpose, the Borrower shall promptly appoint a successor agent and notify
     the Bank of the same. Until the Bank receives such notification, it shall
     be entitled to treat the agent named above (or its said successor) as the
     agent of the Borrower for the purposes of this Section. The Borrower agrees
     that any such legal process shall be sufficiently served on it if delivered
     to such agent for service at its address for the time being in England
     whether or not such agent gives notice of the same to the Borrower.

36.4 NO LIMITATION ON RIGHT OF ACTION

     Nothing in this agreement shall limit the right of the Bank to commence any
     legal action against the Borrower and/or its assets in any other
     jurisdiction or to serve process in any manner permitted by law and the
     taking of proceedings in any jurisdiction shall not preclude the Bank from
     taking proceedings in any other jurisdiction whether concurrently or not.

36.5 WAIVER - FINAL JUDGMENT CONCLUSIVE

     The Borrower irrevocably and unconditionally waives any objection which it
     may now or hereafter have to the choice of England (or the choice of any
     other jurisdiction made pursuant to Section 36.2 (Jurisdiction)) as the
     venue of any legal action arising out of or relating to this agreement and
     agrees not to claim that any court in that venue is not a convenient or
     proper forum. The Borrower also agrees that a final judgment against it in
     any such legal action shall be final and conclusive and may be enforced in
     any other jurisdiction and that a certified or otherwise duly authenticated
     copy of the judgment shall be conclusive evidence of the fact and amount of
     its indebtedness.

37.  WAIVER OF IMMUNITY

     The Borrower irrevocably and unconditionally:

     (a)    agrees that if the Bank brings proceedings against it or its assets
            in relation to a Finance Document, no immunity from those
            proceedings (including, without limitation, suit, attachment prior
            to judgment, other attachment, the obtaining or judgement, execution
            or other enforcement) will be claimed by or on behalf of itself with
            respect to its assets;

     (b)    waives any such right of immunity which it or its assets now has
            or may subsequently acquire; and

                                       74
<PAGE>
     (c)    consents generally in respect of any such proceedings to the giving
            of any relief or the issue of any process in connection with those
            proceedings, including, without limitation, the making, enforcement
            or execution against any assets whatsoever (irrespective of its use
            or intended use) of any order or judgment which may be made or given
            in those proceedings.

                THIS SPACE HAS BEEN LEFT INTENTIONALLY BLANK.

                                       75
<PAGE>
THIS AGREEMENT HAS BEEN ENTERED INTO ON THE DATE STATED AT THE BEGINNING OF THIS
AGREEMENT.

SIGNATORIES

BY:   /S/                                    BY:  /S/
      ----------------------------                ------------------------
      BORROWER                                    BANK

      NAME:                                       NAME:
      TITLE:                                      TITLE:

                                       76
<PAGE>
                                   SCHEDULE 1

                                     PART 1

                         CONDITIONS PRECEDENT DOCUMENTS

                             (CONDITIONS PRECEDENT)

1.   LOAN AGREEMENT

     This Agreement duly executed by the Borrower.

2.   OTHER DOCUMENTS

     Security Documents

     Each of the following items duly executed by each party thereto (other than
     the Bank):

     2.1    the Debenture;

     2.2    the Charges over Shares;

     2.3    the Guarantees; and

     2.4    the Charge over Accounts.

3.   CONSTITUTIONAL DOCUMENTS

     In relation to the Borrower and each Obligor, a certificate signed by a
     Director of such Party attaching true and complete copies of each of the
     following:

            3.1    its certificate of incorporation, all certificates on change
                   of name, memorandum and articles of association, by-laws (if
                   any) and other constitutional documents;

            3.2    resolutions of its board of directors:

                   (a)    approving the execution, delivery and performance
                          by such Party of each Finance Document to which it
                          is to be a party; and

                   (b)    authorising a person or persons to sign and, if
                          required, to affix its corporate seal to each such
                          Finance Document, and all other documents, notices and
                          requests required in connection with the Facility or
                          the Project; and

            3.3    the specimen signature(s) of the person(s) referred to in
                   Section 3.2 of this Schedule;

                                       77
<PAGE>
4.   CORPORATE STRUCTURE

     A copy of a company structure chart identifying each of the shareholders in
     the Borrower and each Obligor, their place of incorporation, the class and
     number of shares held by them and the percentage ownership of share capital
     which that shareholding represents.

5.   EQUITY

     Evidence that the greater of not less than 30 per cent of the Project Costs
     to date have been contributed in Equity to the Borrower.

6.   FINANCIAL AND BUSINESS

     A copy of each of the following:

     6.1    the audited annual accounts of the Borrower and each Obligor (other
            than Atlantic Pacific Enterprises B.V.) for its financial year
            ending 31 December 2002, together with the auditors report in
            respect of each such set of accounts; and

     6.2    the current Construction Period Budget and Operating Budget, in form
            and substance satisfactory to the Bank.

7.   AUTHORISATIONS

     Receipt of a copy of all authorisations, permits, licences, approvals and
     consents required for the consummation of the transactions contemplated
     under the Transaction Documents.

8.   ADVISERS' REPORTS

     Receipt of an:

     (a)    Initial report from the Bank's Technical Advisor; and

     (b)    an insurance report from the Bank's Insurance Advisor,

     in form and substance satisfactory to the Agent.

9.   INTELLECTUAL PROPERTY

     A schedule of all logos, trade marks, patents, design rights and other
     intellectual property owned or licensed by any Obligor in relation to the
     Hotel (including as regards the name "Riverbank Hotel") and copies of all
     agreements or licences thereto.

10.  LICENSING AND PERMITS

                                       78
<PAGE>
     10.1   A copy of each of the Project Permits, to the extent obtained prior
            to the date of the first drawdown under this agreement, and a report
            addressed by the Borrower to the Lender giving details of each of
            those Project Permits and setting out a projected timescale for
            acquiring each outstanding Project Permit.

     10.2   Evidence that all other approvals, authorizations, licences,
            exemptions, filings and notarizations required in relation to the
            Financing Documents or the Project have been obtained and are in
            full force and effect.

11.  INSURANCES

     12.1   Evidence, in form and substance satisfactory to the Bank, that all
            Insurances required to be in effect at the Drawdown Date of the
            Initial Advance pursuant to Schedule 12 (Insurances) are in full
            force and effect and all premiums in relation to those insurances
            have been paid.

     12.2   Copies of all policies of the Insurances.

12.  SECURITY MATTERS

     (a)    Evidence, in form and substance satisfactory to the Bank, that the
            Security Interests created by the Security Documents have been duly
            perfected and registered at any relevant companies' or other
            register.

     (b)    Evidence, in form and substance satisfactory to the Bank, that each
            relevant Person has provided the Bank with consents and such other
            forms as may be necessary for the Bank (without any further action
            on the part of any other person) to register and perfect each
            Security Interest created by each Security Document.

13.  ACCOUNTS

     Evidence that each of the Accounts have been opened in accordance with the
     Account Bank's standard account mandate forms.

14.  LEGAL OPINIONS

     Legal opinions, in form and substance satisfactory to the Bank from:

     (a)    Bird & Bird, Dutch legal adviser to the Borrower, Atlantic
            Pacific Enterprises B.V. and Zilver-Berk B.V. addressed to the
            Bank.

     (b)    Kanter Jules, English legal adviser to the Borrower, addressed to
            the Bank.

     (c)    Offer Vargon Avnon & Co., Israeli legal adviser to Red Sea Club
            Ltd., addressed to the Bank.

     (d)    Adv. Marc Lavine, in-house counsel to Elscint Ltd., addressed to
            the Bank.

                                       79
<PAGE>
16.  MISCELLANEOUS

     16.1   Written confirmation from the person appointed by the Borrower as
            its process agent pursuant to Section 36.3 (Process agent) of this
            Agreement that such appointment is accepted.

     16.2   Written confirmation from the persons appointed by each other
            Obligor as process agent in connection with each other Financing
            Document to which such Obligor is party that such appointment is
            accepted.

     16.3   An undertaking from Park Plaza Hotels Europe Limited in favour of
            the Bank, that they will agree to manage the Hotel and shall enter
            into a management agreement for such purpose upon request by the
            Borrower.

                                       80
<PAGE>
                                   SCHEDULE 1

                                     PART 2

                              CONDITIONS SUBSEQUENT

1.   The Borrower shall procure that the Insurances be amended in accordance
     with Schedule 12 Part 2 (Insurances - Required Amendments).

2.   The Borrower shall provide those Collateral Warranties  as set out in
     Part 3 of this Schedule 1.

3.   The Borrower shall provide copies of the letters of appointment of the
     Professional Team to the Bank.

4.   The Borrower shall procure that the Supplemental Debenture is executed.

5.   A legal opinion from Kanter Jules, English legal adviser to the Borrower,
     in form and substance satisfactory to the Bank, addressed to the Bank
     regarding the Supplemental Debenture.

6.   The Borrower shall procure that the consent of The Mayor and Burgess of the
     London Borough of Lambeth to the assignment of the lease dated 14 February
     2002 from Albert Hotel Limited to the Borrower be received.

7.   The Borrower shall have provided an updated valuation in form and substance
     satisfactory to the Bank from Knight Frank certifying the total value of
     the Project to be L110,000,000 (one hundred and ten million pounds).

8.   The Borrower provide to the Bank a copy of the executed Insurance Proceeds
     Letter, in form and substance satisfactory to the Bank.

                                       81
<PAGE>
                                   SCHEDULE 1

                                     PART 3

                              COLLATERAL WARRANTIES

1.   Amended Collateral Warranties (to the extent possible), in form and
     substance satisfactory to the Bank, from:

     (a)    Skanska Cementation Foundations

     (b)    McGee & Company Limited

2.   Amended Collateral Warranties, in form and substance satisfactory to
     the Bank, from:

     (a)    Bourne Steel Limited

     (b)    EJ Bedekabiner A/s

     (c)    RTT Engineering Services Limited

     (d)    Alu-Glass UK Limited

3.   Collateral Warranties, in form and substance satisfactory to the Bank,
     from:

     (a)    Gear Construction Management Limited (as Planning Supervisor,
            Quantity Surveyor and Management Contractor)

     (b)    Applied Geotechnical Engineering (to the extent possible)

     (c)    Isometrix (to the extent possible)

     (d)    Shachak Communication Engineering

                                       82
<PAGE>
                                   SCHEDULE 2

                          ADDITIONAL COSTS RATE FORMULA

1.   The Additional Costs Rate applicable to an Advance denominated in Sterling
     for each Interest Period shall, subject to paragraph 4 and 5 below, be
     determined according to the following formula:

                           A (D - E) + BD + C (D - F)
                           --------------------------
                                  100 - (B + C)

     where on the day on which the calculation falls to be made:

     A      is the level of secured loans which the Bank is required by the Bank
            of England to maintain in the money market, expressed as a
            percentage of Eligible Liabilities;

     B      is the level of interest free cash balances which the Bank is
            required to maintain with the Bank of England, expressed as a
            percentage of Eligible Liabilities;

     C      is the level of interest-bearing Special Deposits which the Bank is
            required to maintain with the Bank of England, expressed as a
            percentage of Eligible Liabilities;

     D      is the interest rate at which Sterling deposits for the Relevant
            Period are offered to the Bank in the London Interbank Market at or
            about 11.00 am on the requested date of drawdown relating to the
            Advance concerned;

     E      is the lower of D% and the interest rate offered by discount houses
            to the Bank for secured callable fixtures at or about 11.00am on the
            requested date of drawdown relating to the Advance concerned; and

     F      is the lower of D% and the interest rate payable by the Bank of
            England to the Bank on interest-bearing Special Deposits.

2.   For the purposes of this schedule 2:

     2.1    ELIGIBLE LIABILITIES and SPECIAL DEPOSITS shall bear the meaning
            given to them from time to time by the Bank of England; and

     2.2    RELEVANT PERIOD means the duration of the relevant Interest Period.

                                       83
<PAGE>
3.   The Additional Costs Rate shall be calculated at or about 11.00 am on the
     first day of each Relevant Period and shall be payable on the date on which
     interest is payable in respect of the relevant Advance in accordance with
     the terms of this agreement.

4.   The Bank shall determine the Additional Costs Rate by application of the
     formula set out in paragraph 11 above on the first day of each Relevant
     Period (rounding up or down to the nearest whole multiple of 1/32nd of one
     per cent.).

5.   In the event that there is any change in applicable law or regulation,
     or the interpretation thereof, by any governmental authority charged
     with the administration thereof, or in the nature of any request or
     requirement by the Bank of England, or other applicable banking
     authority, the effect of which is to impose, modify or deem applicable
     any reserve, special similar requirements against assets held by, or
     deposits in, or for the deposit, liquidity or account of, or advances by
     the Bank, or in any other respect whatsoever, the Bank shall be entitled
     to vary the formula set out in paragraph 1 above so as (but only so as)
     to restore the Bank's position - in terms of overall return to the Bank
     - to that which prevailed before such change became necessary.  The Bank
     shall notify the Borrower of any such necessary variation to the formula
     and the formula, as so varied, shall be the formula for the purposes of
     this agreement with effect from the date of notification.

                                       84
<PAGE>
                                   SCHEDULE 3

                               CHARGES OVER SHARES
<PAGE>
                                   SCHEDULE 4

                          BORROWER CHARGE OVER ACCOUNTS
<PAGE>
                                   SCHEDULE 5

                          OPERATOR CHARGE OVER ACCOUNTS
<PAGE>
                                   SCHEDULE 6

                                    DEBENTURE
<PAGE>
                                   SCHEDULE 7

                             SUBORDINATION AGREEMENT
<PAGE>
                                   SCHEDULE 8

                    COMPLETION AND COSTS OVERRUN GUARANTEE
<PAGE>
                                   SCHEDULE 9

                               REPAYMENT SCHEDULE
<PAGE>
                                   SCHEDULE 10

                              OTHER PROJECT PERMITS
<PAGE>
                                   SCHEDULE 11

                            FORM OF ADVANCE REQUESTS
<PAGE>
                                   SCHEDULE 12

                                     PART 1

                                   INSURANCES

1.    Contracts Works Insurance

2.    Third Party Liability Insurance

3.    Public and Products Liability Insurance

4.    Business Interruption Insurance
<PAGE>
                                   SCHEDULE 12

                                     PART 2

                        INSURANCES - REQUIRED AMENDMENTS

1.   The amendments set out in the letters of the Bank's Insurance Consultant to
     the Bank dated 7 December 2003 and 11 December 2003 (based upon the Bank's
     Insurance Consultant's review of the cover notes of the Insurances) which
     shall be made to the satisfaction of the Bank:
<PAGE>
                                   SCHEDULE 13

                                PROFESSIONAL TEAM

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