EXHIBIT 10.7 UNIVERSAL INDEPENDENT HOLDINGS LIMITED PO BOX 438 TROPIC ISLE BUILDING WICKHAMS CORY ROAD TOWN TORTOLA BRITISH VIRGIN ISLANDS Capital Media (UK) Limited 31 October 1996 25 Jane Street London WIM 5HY Dear Sirs FINANCINGS ARRANGEMENTS BY OURSELVES ("UNIVERSAL INDEPENDENT HOLDINGS LIMITED") IN RESPECT OF THE LEASE OF A TRANSPONDER FROM PTT TELECOM BV TO YOURSELVES CAPITAL MEDIA (UK) LIMITED (THE "LEASE"). We refer to the financing arrangements in respect of the Lease and in particular the Security Assignment, the Debenture and the Counter Indemnity (the "Documents") which you granted in our favour as security in respect of such financing. We confirm that it is our intention if circumstances remain as they are at the date hereof that although the Documents refer to all monies owing from yourselves to ourselves that such all monies provision will secure only the monies outstanding to us under the Counter Indemnity which you entered into in favour of ourselves (including all costs and expenses) as there are no other obligations outstanding between us as far as we are aware at the date hereof. This letter is governed and shall be construed in accordance with the laws of England. Signed for and on behalf of /s/ -------------------------------------- UNIVERSAL INDEPENDENT HOLDINGS LIMITED Accepted and Agreed /s/ CHARLES KOPPEL -------------------------------------- CAPITAL MEDIA (UK) Limited