Article 4
Cyprus shall ensure that the capital increase to the extent of CYP 14 million (EUR 24,3 million) in Cyprus Airways Public Ltd foreseen for mid-2007 respects the following conditions: a) the capital increase will not take place until a formal unconditional commitment to underwrite the successful outcome of the operation has been signed by the appointed underwriting commercial bank with the exception of the usual conditions concerning cases of force majeure, acts of war, terrorism and other similar cases; b) the State can only subscribe in the capital increase up to a maximum of 70 % thereof, c) the State subscribes the new shares issued on the basis of the same rights and under the same conditions, at the same price as the private investors, without prejudice to the proposed timetable for the underwriting by the bank of the successful completion; d) the operation must not be accompanied by any collateral agreement or implicit agreement whereby the State would exonerate the bank from its obligation if the recapitalisation offer was insufficiently subscribed or grant the bank any special discount on the issue price.