| (1) | Alfredo      Javier Aleix Argüelles and Carlos David Maroto Sobrado representing TELFISA GLOBAL BV., a      company incorporated under the law of the Netherlands, having its      statutory seat in Amsterdam and registered office at Strawinskylaan 665,      1077 XX Amsterdam, The Netherlands, and who has authority to execute this      Agreement; |
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|   | and |
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| (2) | Juan      Cristóbal D’Ambrosio and Alejandro Pinedo representing TELEFÓNICA DE ARGENTINA      S.A., whose head office is registered at Avda, Ingeniero Huergo      723, Planta Baja, Ciudad de Buenos Aires, Argentina, and who has authority      to execute this Agreement; |
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|   |  RECITALS |
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| I.      - | TELFISA GLOBAL B.V. and      TELEFÓNICA DE ARGENTINA      S.A. are subsidiaries of TELEFÓNICA, S.A., whose      head office is registered at Gran Via 28, Madrid, Spain and who holds      directly or indirectly the majority stake of these    companies. |
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| II.      - | In      order to optimise the use of its economic resources and within an      integrated management of the treasury and finance of TELEFÓNICA S.A.’s group      of subsidiaries (hereinafter the Group or the Group Companies,      each separately      the Group Company), the parties agree to sign this Agreement      through which the aforementioned integrated management is      structured. |
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| III.      - | In      accordance with the above and without prejudice that another more      appropriate agreement for the management of the Group’s treasury and      finance may be entered into in the future, the parties sign this Agreement      and agree to the following: |
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| 1. | PURPOSE      OF THE AGREEMENT |
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| 1.1 | TELFISA GLOBAL BV and      TELEFÓNICA DE ARGENTINA      S.A. agree to set up an account system (the "Account") in which all      money placed by TELFISA      GLOBAL B.V. to TELEFÓNICA DE ARGENTINA S.A.      and vice versa (the "Placements") will be      recorded. |
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| 1.3. | Additionally,      TELFISA GLOBAL,      B.V. and TELEFÓNICA DE ARGENTINA      S.A. agree that TELFISA GLOBAL, B.V.      will manage the following selected areas of TELEFÓNICA DE ARGENTINA      S.A.’s and any other Group Companies      treasury activities. For that purpose, TELFISA GLOBAL B.V.      shall be entitled, and is authorized by TELEFÓNICA DE ARGENTINA      S.A., to, inter alia: |
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|   | - | Redistribute      any balance recorded against and in favour of TELEFÓNICA DE ARGENTINA      S.A. |
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|   | - | Obtain      capital to finance TELEFÓNICA DE ARGENTINA      S.A.’s working capital from parties within or outside the      Group. |
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|   | - | Decide      on the method to be applied to the management of the balance recorded in      the Account against or in favour of TELEFÓNICA DE ARGENTINA S.A.      to the extent such method is in compliance with the terms and the      spirit of this Agreement. |
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|   | - | Take      any other actions considered necessary to achieve the fulfilment of this      Agreement. |
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|   | - | Use      any balance recorded in favour of TELEFÓNICA DE ARGENTINA      S.A. in short terminvestments. |
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|   | Any      Placements made by TELFISA GLOBAL B.V. to      TELEFÓNICA DE ARGENTINA      S.A. or by TELEFÓNICA DE ARGENTINA      S.A. to TELFISA      GLOBAL B.V. will be recorded in the Account made pursuant to Clause      1.2 above. Balances in the account will be made available on the drawdown      date provided that TELEFÓNICA DE ARGENTINA S.A. has received one (1)      Business Day prior the proposed drawdown date a duly completed and signed      “Advance Notice Form” from TELFISA GLOBAL B.V., or TELFISA GLOBAL B.V. has      received one (1) Business Days prior the proposed repayment date a duly      completed and signed   “Repayment Notice Form” from      TELEFÓNICA DE ARGENTINA S.A. |
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| 3.1 | The      daily debit balance recorded against TELEFÓNICA DE ARGENTINA      S.A. in the Account shall not exceed USD 1,000 (US Dollars One      Thousand). |
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| 3.2 | An      extract of the balance of the Account will be obtained daily to ensure      that TELEFÓNICA DE      ARGENTINA S.A. complies with Clause 3.1  above. |
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| 3.3 | The      limit set out in Clause 3.1 may be amended if both parties agree to such      amendment in writing. |
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| 3.4 | Should      TELEFÓNICA DE ARGENTINA      S.A. exceed the limit imposed on the Account pursuant to Clause 3.1      or 3.3 above, TELEFÓNICA      DE ARGENTINA S.A. authorises TELFISA GLOBAL B.V. to      apply all payments which according to clause 1.3 TELEFÓNICA DE ARGENTINA      S.A. receives from other companies in the Group to reduce the amount daily      owed by TELEFÓNICA DE      ARGENTINA S.A. to TELFISA GLOBAL      B.V. |
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| 3.5. | TELFISA GLOBAL B.V.      hereby agrees that any amount collected from TELEFÓNICA DE ARGENTINA      S.A. shall be placed in TELEFÓNICA, S.A., or in      any other subsidiary, or any holding thereto, with respect to which TELFISA GLOBAL B.V. has      a deposit for the same amount or higher which can be set off. In case      TELFISA GLOBAL      B.V. decides to make any other placement, it shall so notify TELEFÓNICA DE ARGENTINA      S.A. 2 (two) business days in advance so that TELEFÓNICA DE ARGENTINA      S.A. can decide to recover any balance of the account on its      favour. TELFISA GLOBAL      B.V. undertakes to furnish TELEFÓNICA DE ARGENTINA      S.A. with a copy of any financial statement within 10 (ten)      business days as from each issuancedate. |
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| 4.1 | The      Account, until it is closed or this Agreement is terminated in accordance      with Clauses 8 and 9 hereof, will accrue interest for each corresponding      Interest Period (as defined in Clause 6 below in accordance with the      following rate: |
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|   | a) | Balances      in favour of TELFISA      GLOBAL B.V.: the interest rate applicable (the "Applicable Interest      Rate") shall be the Reference Interest Rate (as defined in Clause 5      below) plus a margin of 4 bp (according to the usual market practice), in      accordance with arms lengthprinciple. |
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|   | b) | Balances      in favour of TELEFÓNICA      DE ARGENTINA S.A.: the Applicable Interest Rate shall be the      Reference Interest Rate plus a margin of 4 bp (according to the usual      market practice), in accordance with arms length  principle. |
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| 4.2 | For      each Interest Period the Applicable Interest Rate will be applied to the      balance recorded in the Account counting all natural days elapsed, and      using, as basis, a year of 360days. |
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| 4.3 | The      Applicable Interest Rate to be applied for each Interest Period will be      established by TELFISA      GLOBAL B.V. on the business day prior to the beginning of the      corresponding Interest Period, in accordance with Clauses 4 and 5 of this      Agreement. |
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| 5. | REFERENCE INTEREST      RATE |
|----|------------------------------|

| 6. | INTEREST PERIOD, ACCRUAL AND      SETTLEMENT OF INTEREST |
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| 6.1 | Solely      in order to establish the Applicable Interest Rate, the duration period of      the Agreement will be divided into interest periods (each an "Interest Period") of one      month each, which shall begin on the first day of each month and end on      the last day of each month except for the first of such Interest Periods      which will start on the date of this Agreement and end on the last day of      the corresponding month. |
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| 6.2 | The      balances in favour of TELEFÓNICA DE ARGENTINA S.A.      or TELFISA GLOBAL      B.V. recorded in the Account will accrue interest on a daily basis      at the Applicable Interest Rate. |
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| 6.3 | On      a monthly basis, and coinciding with the closing of each month, the      Account will be settled and the accrued interest for the month will be      calculated, in accordance with Clauses 4 and 5. The resulting amount will      be then registered in the Account as the starting item of the new Interest      Period. |
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| 7. | DURATION AND      MATURITY |
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| 8. | ACCELERATION AND      CANCELLATION |
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|   | a) | TELEFÓNICA DE ARGENTINA S.A.      or TELFISA GLOBAL      B.V. fails to pay any sum when due hereunder or to comply promptly      with any other term hereof; provided however, that the party breaching      this obligation does not remedy the breach after the written request of      the other party to do so within 20 (twenty) business days upon such      request; |
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|   | b) | TELEFÓNICA DE ARGENTINA S.A.      or TELFISA GLOBAL      B.V. announce or admit in writing its inability to pay its debts as      the mature, and/or; |
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|   | c) | Any      liquidator, trustee in bankruptcy, judicial custodian, complulsory manager      receiver, administrative receiver or the like is appointed in respect of      TELEFÓNICA DE ARGENTINA      S.A.or TELFISA      GLOBAL, B.V. |
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| 9. | PENALTY      INTERESTS |
|----|------------------------|

| 10. | ALLOCATION OF      PAYMENTS |
|-----|-----------------------------|

|   | Any      payment made by TELFISA      GLOBAL B.V. or TELEFÓNICA DE ARGENTINA S.A.      in compliance with this Agreement will be allocated in the      following order: |
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|   | 1. | Expenses      and commissions (should theseexist). |
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|   | 2. | Penalty      Interest Rate (should any beoutstanding). |
|--------|----|--------------------------------------------------------|

|   | 3. | Accrued      interest. |
|--------|----|------------------------|

|   | 4. | Principal. |
|--------|----|------------|

| 11. | CALCULATION AND SETTLEMENT OF      DEBT |
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| 12. | SET  OFF |
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| 14.1 | Any      taxes that may arise as a result of the execution or resolution of this      Agreement will be covered by the parties as stated by the relevant      law. |
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|   | 15. | ASSIGNMENT |
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| 16. | LAW      AND JURISDICTION |
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| 17. | ADJUSTMENT      AND SEVERABILITY |
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|   | 17.1 | The      parties are aware that jurisprudence on cash-management systems is      continuously evolving. The parties shall, whenever and as often as      reasonably requested by either party, negotiate in good faith any      adjustments and execute all further acts as are necessary or appropriate      in order to ensure the purpose of this  Agreement. |
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|   | 17.2 | Should      any provision of this Agreement be deemed or held to be wholly or partly      invalid, ineffective or unenforceable, this shall not affect the validity,      effectiveness or enforceability of the remainder hereof. The parties      hereby agree to replace any invalid, ineffective, or unenforceable      provision by a provision, negotiated in good faith, that achieves as      closely as possible the original commercial intention of the parties. The      same shall apply to omissions. |
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