Document:

<PAGE>

                                                                   EXHIBIT 10.12

                                                                       EXECUTION
                                                                     COUNTERPART

                                                      EDC LOAN NO. 880-CHIL-7078
                                                         IDB LOAN NO. 1227/0C-CH

================================================================================

              AMENDED AND RESTATED TRANSFER RESTRICTIONS AGREEMENT

                          Dated as of December 22, 1999

                                      among

                                SR TELECOM INC.,

                           SR (BV) HOLDINGS LIMITED,

                              CTR HOLDINGS LIMITED,

                  SERVICIOS RURALES DE TELECOMUNICACIONES S.A.,

                      COMUNICACION Y TELEFONIA RURAL S.A.,

                         EXPORT DEVELOPMENT CORPORATION

                                       and

                         INTER-AMERICAN DEVELOPMENT BANK

================================================================================

<PAGE>

         AMENDED AND RESTATED TRANSFER RESTRICTIONS AGREEMENT (this
"Agreement"), dated as of December 22, 1999, among SR Telecom Inc., a
corporation incorporated under the laws of Canada; SR (BV) Holdings Limited, a
limited liability company incorporated under the laws of the British Virgin
Islands; CTR Holdings Limited, a limited liability company incorporated under
the laws of the British Virgin Islands; Servicios Rurales de Telecomunicaciones
S.A., a sociedad anonima incorporated under the laws of Chile and Comunicacion y
Telefonia Rural S.A., a sociedad anonima incorporated under the laws of Chile
(each an "SRT Party" and collectively the "SRT Parties"), EXPORT DEVELOPMENT
CORPORATION, a corporation established by an Act of the Parliament of Canada
("EDC") and INTER-AMERICAN DEVELOPMENT BANK, an international organization
established by the Articles of Agreement among its member countries ("IDB",
together with EDC, the "Senior Lenders").

                              W I T N E S S E T H :

WHEREAS, SRT owns all of the issued and outstanding shares in the capital stock
of SR (BV) Holdings Limited ("SR (BV) Holdings");

WHEREAS, SR (BV) Holdings owns all of the issued and outstanding shares in the
capital stock of CTR Holdings Limited ("BVI Holdco");

WHEREAS SR (BV) Holdings and BVI Holdco collectively own all of the issued and
outstanding shares in the capital stock of Servicios Rurales de
Telecomunicaciones S.A. ("Chilean Holdco");

WHEREAS Chilean Holdco and BVI Holdco collectively own all of the issued and
outstanding shares in the capital stock of Comunicacion y Telefonia Rural S.A.
(the "Borrower");

WHEREAS, the Borrower has undertaken to design, construct, install and operate a
rural telecommunications network in nine primary zones of Chile (the "Project");

WHEREAS, in order to finance a portion of the Project, the Borrower and EDC are
parties to an Amended and Restated Loan Agreement dated as of the date hereof
(the "EDC Loan Agreement"), providing, subject to the terms and conditions
thereof, for a loan to be made by EDC to the Borrower in an aggregate amount not
exceeding $25,000,000;

WHEREAS, in order to finance a portion of the Project, the Borrower and IDB are
parties to a Loan Agreement dated as of the date hereof ( the "IDB Loan
Agreement," together with the EDC Loan Agreement, the "Senior Loan Agreements"),
providing, subject to the terms and conditions thereof, for a loan to be made by
IDB to the Borrower in an aggregate amount not exceeding $25,000,000;

WHEREAS, the Borrower and the Senior Lenders are parties to a Common Agreement
dated as of the date hereof (the "Common Agreement");

                         TRANSFER RESTRICTIONS AGREEMENT

<PAGE>

                                      - 3 -

NOW, THEREFORE, to induce the Senior Lenders to enter into the Senior Loan
Agreements and extend credit thereunder, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
SRT Parties have, inter alia, entered into this Agreement with the Senior
Lenders to undertake certain obligations for the benefit of the Senior Lenders,
and accordingly, the parties hereto agree as follows:

                                    ARTICLE I

                                     GENERAL

         1.01     Definitions. Each capitalized term used herein (including in
the preamble and recitals hereto) and not otherwise defined herein shall have
the meaning assigned to that term in Appendix A to the Amended and Restated
Direct Agreement dated as of the date hereof (the "Direct Agreement") among the
Senior Lenders, the Borrower and SRT.

         1.02     Interpretation. The rules of interpretation set out in the
Direct Agreement shall apply mutatis mutandis to this Agreement as if set forth
in full in this Section 1.02.

                                   ARTICLE II

                             COVENANTS ON TRANSFERS

         2.01     Transfers of Interests. Except for the grant of security
interests in favor of the Senior Lenders under or pursuant to the Security
Documents, each SRT Party agrees not to effect or permit and agrees to cause any
of its Subsidiaries not to effect or permit, without the prior written consent
of the Senior Lenders (such consent not to be unreasonably withheld), any
transfer, assignment, pledge, sale or other disposition or encumbrance (whether
directly or indirectly, including but not limited to, with respect to an
intermediate holding company) of capital stock (or any other option, security or
other interest in any of the foregoing that may be converted into such an equity
interest) of any Transaction Party owned by it (save and except capital stock of
SRT itself), in one or more transactions (collectively, "Transfer"), unless,
immediately after giving effect to such Transfer (and any previous Transfers),
SRT shall own or hold indirectly at least 80% of the aggregate outstanding
capital stock (or any other option, security or other interest in any of the
foregoing that may be converted into such an equity interest) of the Borrower.

         2.02     Assumption of Obligations. No Transfer under Section 2.01
shall be effective unless the transferee thereof assumes in writing all of the
obligations of the transferor under this Agreement and each other Transaction
Document to which such transferor is a party.

         2.03     Notice and Request for Consent. In the event that an SRT Party
wishes to effect a Transfer (whether or not the consent of the Senior Lenders is
required for such Transfer), the SRT Party proposing to effect such Transfer
shall notify each Senior Lender at least 60 days in advance of such proposed
Transfer, which notice shall state in reasonable detail the terms and conditions
of the proposed Transfer, including the identity of the proposed transferee and,
if applicable, of the ultimate beneficial owner thereof, the date upon which the
Transfer is proposed

                         TRANSFER RESTRICTIONS AGREEMENT

<PAGE>

                                      - 4 -

to be made, and any other information any Senior Lender may reasonably request.
With respect to any Transfer which requires the consent of the Senior Lenders,
if the Senior Lenders do not respond to such notice within such 60 days, the
Senior Lenders shall be deemed to have rejected such proposed Transfer. If the
Senior Lenders consent to such Transfer, the SRT Party proposing to effect such
Transfer shall promptly notify each Senior Lender upon the consummation of such
Transfer (and assumption of obligations required by Section 2.02 hereof).

         2.04     Involuntary Transfers. Transfers not permitted by or pursuant
to this Agreement and which result from any action by any Person, other than an
SRT Party or its successors and/or assigns, shall not constitute a breach of the
obligations of such SRT Party hereunder unless 90 days have passed from the date
of such Transfer and such Transfer has not been reversed. The relevant SRT Party
or, as the case may be, its successors and assigns, shall give prompt written
notice to each Senior Lender of any such involuntary Transfer.

         2.05     Effect on Security Interests. Notwithstanding the foregoing,
no Transfer shall be permitted, made or effective (a) if such Transfer would
reasonably be expected to have a material adverse effect upon (i) the security
interests created or purported to be created in favor of the Senior Lenders by
or pursuant to the Security Documents in any of the collateral described therein
held by the Senior Lenders, or (ii) the rights of the Senior Lenders of whatever
nature under any existing Transaction Document, (b) if such Transfer has not
been approved by the Senior Lenders and the consent of the Senior Lenders was
required for such Transfer, (c) unless the Senior Lenders have received from
appropriate legal representatives of the relevant SRT Party a certificate or
opinion relating to the absence of the material adverse effect referred to in
this Section 2.05(a), and (d) unless the proposed transferee first grants a
security interest to the Senior Lenders in the capital stock of the relevant SRT
Party's affiliate or other equity interest so transferred pursuant to the
security documents to be executed to that effect. The granting of the security
interests contemplated in this Section 2.05(d) shall be in form and substance
acceptable to the Senior Lenders, and shall be accompanied by a legal opinion of
counsel to the proposed transferee (in form and substance acceptable to the
Senior Lenders) to the effect that such security interests are valid and
perfected security interests.

                                   ARTICLE III

                   REPRESENTATIONS, WARRANTIES AND COVENANTS

         3.01     Representations and Warranties of SRT. SRT confirms to the
Senior Lenders as of the date hereof each of the representations and warranties
made by SRT in Section 4 of the Direct Agreement, which representations and
warranties are incorporated herein by reference as if fully set forth in this
Agreement.

         3.02     Representations and Warranties of each SRT Party other than
SRT. Each SRT Party, other than SRT, represents and warrants to the Senior
Lenders that, as of the date hereof:

(a)      Organization. It is duly incorporated and validly existing in good
         standing in its jurisdiction of incorporation and is qualified to do
         business in all jurisdictions where such qualification is required
         except where the failure to be so qualified would not reasonably

                         TRANSFER RESTRICTIONS AGREEMENT

<PAGE>

                                      - 5 -

         be expected to have a material adverse effect on its ability to perform
         its obligations hereunder;

(b)      Authority. It has full power and authority to execute and deliver, and
         to incur and perform its obligations under, this Agreement and each
         other Transaction Document to which it is a party;

(c)      Enforceability. Each Transaction Document to which it is a party has
         been duly authorized, executed and delivered by it and constitutes its
         valid and legally binding obligation enforceable against it in
         accordance with its respective terms, except to the extent specified in
         the relevant legal opinions to be delivered on the first disbursement
         of the loans contemplated in the IDB Loan Agreement;

(d)      Governmental Approvals. It has received or has the benefit of all
         authorizations, consents or approvals from governmental authorities
         which are necessary for it to execute and deliver, and to incur and
         perform its obligations under, this Agreement and each other
         Transaction Document to which it is a party, and such authorizations,
         consents or approvals are in full force and effect;

(e)      No Immunity. Neither it nor any of its assets are entitled to any
         immunity from jurisdiction of any court or from legal process (whether
         through service, notice, attachment prior to judgment, attachment in
         aid of execution, execution or otherwise);

(f)      No Legal Proceedings. Except as disclosed to the Senior Lenders, there
         are no actions, suits or proceedings pending or, to the best of its
         knowledge, threatened against or affecting any of its properties in any
         court, before or by any governmental department, board, agency,
         administration or instrumentality or before any arbitrator, and no
         existing default by it under any applicable order, writ, injunction,
         decree or other decision of any court, governmental department, board
         agency, administrator or instrumentality or any arbitrator, in each
         case (i) which could reasonably be expected to have a material adverse
         effect on its ability to perform its obligations under this Agreement,
         or (ii) which could reasonably be expected to render this Agreement
         unenforceable (except to the extent specified in paragraph (c) above);

(g)      No Conflicts. There is no provision of any law, statute, regulation,
         rule, order, injunction, decree, writ or judgment, no provision of its
         certificate of incorporation, bylaws or other constituent document and
         no provision of any mortgage, indenture contract or other agreement to
         which it is a party or affecting its properties which would prohibit,
         conflict with or in any way prevent the execution and delivery of, or
         performance of its obligation under, this Agreement, including, without
         limitation, Sections 4.04 and 4.05, or each other Transaction Document
         to which it is a party; and

(h)      Subordinated Indebtedness. No Subordinated Indebtedness of the Borrower
         is held by it.

         3.03     Representations and Warranties of each SRT Party. Each SRT
Party represents and warrants to the Senior Lenders, that, as of the date
hereof, the chain of ownership described in the first four recitals to this
Agreement is true and accurate in all respects and, subject to the security
interests purported to be created by or under the Security Documents, it has
good

                         TRANSFER RESTRICTIONS AGREEMENT

<PAGE>

                                      - 6 -

marketable title to all of the shares of capital stock of its directly-held
Subsidiaries which it purports to hold, free of any liens other than the ones
permitted under the Common Agreement. The Security Documents create in favor of
the Senior Lenders each security interest purported to be created thereunder,
and except as noted in the legal opinions to be delivered on the first
disbursement of the loans contemplated in the IDB Loan Agreement, each such
security interest is valid and legally binding and will constitute, under
applicable law, fully perfected first and prior security interests enforceable
against the grantor of such security interest, any trustee in any bankruptcy and
any attaching creditor or third party.

                                   ARTICLE IV

                                 MISCELLANEOUS

         4.01     Termination. This Agreement shall terminate on the date on
which (i) all of the Commitments have been reduced to zero or have expired; and
(ii) all of the Borrower's obligations under the Senior Loan Agreements are
indefeasibly paid in full. Upon the termination of this Agreement, the
obligations of the parties hereto shall terminate.

         4.02     Severability. If any provision of this Agreement shall be
invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby.
If any provisions of this Agreement shall be invalid, illegal or unenforceable
in any jurisdiction, the validity, legality and enforceability of such provision
shall not in any way be affected or impaired in any other jurisdiction thereby.

         4.03     Notices. Any notice, claim, request, demand, consent
designation, direction, instruction, certificate, report or other communication
to be given hereunder shall be given in writing in the English language (or
accompanied by an accurate English language translation upon which the recipient
shall have the right to rely for all purposes) and will be deemed duly given
when (i) personally delivered, (ii) sent by facsimile transmission (but only if,
immediately after the transmission, the sender's facsimile machine records in
writing the correct answer back) or (iii) ten days have elapsed after mailing by
certified or registered mail, postage prepaid, in each case addressed to a party
at its address or facsimile transmission number as set forth below or to another
address or facsimile number of which that party has given notice. Notice of
address or facsimile number change shall be effective only upon receipt.

                  If to ANY SRT PARTY:

                  8150 Trans Canada Highway
                  St. Laurent, Quebec
                  Canada H4S 1M5
                  Attention:  President & CEO
                  Telecopier: 514-335-2035

                         TRANSFER RESTRICTIONS AGREEMENT

<PAGE>

                                      - 7 -

                  If to SENIOR LENDERS:

                  EDC
                  151 O'Connor Street
                  Ottawa, Ontario
                  Canada KlA 1K3
                  Attention:  Loans Operations
                  Telecopier: 613-598-2514

                  and

                  Private Sector Department
                  Inter-American Development Bank
                  1300 New York Avenue, N.W., Washington, D.C. 20577
                  Attention: Loan Administration Unit
                  Telecopier: 202-623-3639

         4.04     GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

         4.05     Jurisdiction, Service of Process and Venue.

(a)      Submission to Jurisdiction. Each SRT Party hereby agrees that any suit,
         action or proceeding with respect to this Agreement or any judgment
         entered by any court in respect thereof may be brought by the Senior
         Lenders in the courts of the Province of Ontario, Canada or in the
         United States District Court for the Southern District of New York, in
         the Supreme Court of the State of New York sitting in New York County
         (including its Appellate Division) or in any other appellate court in
         the State of New York, as the party commencing such suit, action or
         proceeding may elect in its sole discretion; and each SRT Party hereby
         irrevocably submits to the jurisdiction of such courts for the purpose
         of any such suit, action, proceeding or judgment. Each SRT Party
         further submits, for the purpose of any such suit, action, proceeding
         or judgment brought or rendered against it, to the appropriate courts
         of the jurisdiction of its domicile.

(b)      Service of Process. Each SRT Party, other than SRT and the Borrower,
         hereby agrees that service of all writs, process and summonses in any
         such suit, action or proceeding brought in (i) the Province of Ontario
         may be made upon SRT, presently located at the address noted in Section
         4.03 (the "Canadian Process Agent") or (ii) the State of New York may
         be made upon CT Corporation, presently located at 111 Eighth Avenue,
         13th Floor, New York. New York 10011. USA. (the "US Process Agent" and,
         together with the Canadian Process Agent, the "Process Agents"), and
         each SRT Party, other than SRT and the Borrower, hereby confirms and
         agrees that the Process Agents have been duly and irrevocably appointed
         as its agent and true and lawful attorney-in-fact in its name, place
         and stead to accept such service of any and all such writs, process and
         summonses, and agrees that the failure of the Process Agents to give
         any notice of any such service of process to such SRT Party shall not
         impair or affect the validity of such service or of any judgment based
         thereon. Each SRT Party, other than the Borrower and Chilean Holdco,

                         TRANSFER RESTRICTIONS AGREEMENT

<PAGE>

                                      - 8 -

         hereby further irrevocably consents to the service of process in any
         suit, action or proceeding in said courts by the mailing thereof by the
         Senior Lenders by registered or certified mail, postage prepaid, at its
         address set forth beneath its signature hereto.

(c)      No Limitation on Service of Process. Nothing herein shall in any way be
         deemed to limit the ability of the Senior Lenders to serve any such
         writs, process or summonses in any other manner permitted by applicable
         law or to obtain jurisdiction over any SRT Party in such other
         jurisdictions, and in such manner, as may be permitted by applicable
         law.

(d)      Venue and Forum. Each SRT Party, hereby irrevocably waives any
         objection that it may now or hereafter have to the laying of the venue
         of any suit, action or proceeding arising out of or relating to this
         Agreement or any other Transaction Document brought in the courts of
         the Province of Ontario, Canada or in the Supreme Court of the State of
         New York, County of New York or in the United States District Court for
         the Southern District of New York, and hereby further irrevocably
         waives any claim that any such suit, action or proceeding brought in
         any such court has been brought in an inconvenient forum.

(e)      Acceptance by Process Agent. Each SRT Party other than SRT and the
         Borrower, hereby agrees to cause each Process Agent to execute and
         deliver to the Senior Lenders a letter from each Process Agent in form
         and content acceptable to the Senior Lenders, acting reasonably.

         4.06     WAIVER OF JURY TRIAL, (a) EACH PARTY HERETO HEREBY IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO
TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

         (b) Each SRT Party hereby acknowledges that IDB shall be entitled under
applicable law, including the provisions of the International Organizations
Immunities Act, to immunity from a trial by jury in any action, suit or
proceeding arising out of or relating to this Agreement, any other Transaction
Document or the transactions contemplated hereby or any other agreement to which
any SRT Party is a party, brought against IDB in any court of the United States
of America. To the maximum extent not prohibited by law, each of the SRT
Parties, EDC and IDB hereby irrevocably and unconditionally waives trial by jury
in any legal action or proceeding relating to this Agreement or any Transaction
Document to which such person is a party and for any counterclaim therein in any
forum in which IDB is not entitled to immunity from a trial by jury. To the
extent that any SRT Party has or hereafter may acquire any immunity (sovereign
or otherwise) from any legal action, suit or proceeding, from jurisdiction of
any court or from set-off or any legal process (whether service or notice,
attachment prior to judgment, attachment in aid of execution of judgment,
execution of judgment or otherwise) with respect to itself or any of its
property, each SRT Party hereby irrevocably waives and agrees not to plead or
claim such immunity in respect of its obligations under this Agreement and the
other Transaction Documents. Each SRT Party agrees that the waivers set forth
above shall have the fullest extent permitted under the Foreign Sovereign
Immunities Act of 1976 of the United States of America and are intended to be
irrevocable and not subject to withdrawal for purposes of such Act.

                         TRANSFER RESTRICTIONS AGREEMENT

<PAGE>

                                      - 9 -

         4.07     Amendments. This Agreement may be amended only by an agreement
in writing executed by each of the parties hereto.

         4.08     Expenses. The SRT Parties are jointly and severally liable for
all out-of-pocket expenses of the Senior Lenders (including the reasonable fees
and expenses of counsel for the Senior Lenders) incurred in connection with the
enforcement of this Agreement.

         4.09     Benefits of Agreement. Nothing in this Agreement, express or
implied, shall give to any Person, other than the parties hereto and their
successors and permitted assigns hereunder and under Financing Document, any
benefit or any legal or equitable right or remedy under this Agreement.

         4.10     Remedies. No remedy herein conferred upon the Senior Lenders
is intended to be exclusive of any other remedy and each and every such other
remedy shall be cumulative and shall be in addition to every other remedy given
hereunder or now or hereafter existing at law or in equity or by statute or
otherwise.

         4.11     Effectiveness. This Agreement shall come into full force and
effect, and amend and restate, the Transfer Restrictions Agreement dated as of
April 13, 1999 among the SRT Parties and EDC as of the date on which the EDC
Loan Agreement becomes effective in accordance with Section 6 thereof.

         4.12     Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed to be an original but all of which
together shall constitute one and the same instrument.

         4.13     Headings. The headings in this Agreement are for convenience
of reference only and shall not limit or otherwise affect any of the terms
hereof.

         4.14     Use of English Language. This Agreement has been negotiated
and executed in the English language. All certificates, reports, notices and
other documents and communications given or delivered pursuant to this Agreement
(including, without limitation, any modifications or supplements hereto) shall
be in the English language, or accompanied by a certified English translation
thereof. Except in the case of laws or official communications of Chile, in the
case of any document originally issued in a language other than English, the
English language version of any such document shall for purposes of this
Agreement, and absent manifest error, control the meaning of the matters set
forth therein.

                        TRANSFER RESTRICTIONS AGREEMENT

<PAGE>

                                     - 10 -

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

                                    SR TELECOM INC.

                                    By: /s/ W. Ronald Couchman
                                        ----------------------------
                                    Name:  W. Ronald Couchman
                                    Title: Chief Executive Officer

                                    BY: /s/ David L. Adams
                                        ----------------------------
                                    Name:  David L. Adams
                                    Title: Chief Financial Officer

                        TRANSFER RESTRICTIONS AGREEMENT

<PAGE>

                                     - 11 -

                                    SR (BV) HOLDINGS LIMITED

                                    By: /s/ W. Ronald Couchman
                                        -----------------------------
                                    Name:  W. Ronald Couchman
                                    Title: Director

                                    By:______________________________
                                    Name:
                                    Title:

                        TRANSFER RESTRICTIONS AGREEMENT

<PAGE>

                                     - 12 -

                              CTR HOLDINGS LIMITED

                              By: /s/ W. Ronald Couchman
                                  -----------------------------
                              Name:  W. Ronald Couchman
                              Title: Director

                              By:_____________________________
                              Name:
                              Title:

                         TRANSFER RESTRICTIONS AGREEMENT

<PAGE>

                                     - 13 -

                              SERVICIOS RURALES DE
                              TELECOMUNICACIONES S.A.

                              By: /s/ W. Ronald Couchman
                                  ------------------------------
                              Name:  W. Ronald Couchman
                              Title: Director

                              By:________________________________
                              Name:
                              Title:

                        TRANSFER RESTRICTIONS AGREEMENT

<PAGE>

                                     - 14 -

                              COMUNICACION Y TELEFONIA RURAL S.A.

                              By: /s/ D'Arcy J. Leddy
                                  -------------------------------
                              Name:  D'Arcy J. Leddy
                              Title: Director

                        TRANSFER RESTRICTIONS AGREEMENT

<PAGE>

                                     - 15 -

                              EXPORT DEVELOPMENT CORPORATION

                              By: /s/ Bruce Dunlop
                                  --------------------------------
                              Name:  Bruce Dunlop
                              Title: Financial Services Manager

                              By: /s/ Brian Craig
                                  --------------------------------
                              Name:  Brian Craig
                              Title: Financial Services Manager

                         TRANSFER RESTRICTIONS AGREEMENT

<PAGE>

                                     - 16 -

                              INTER-AMERICAN DEVELOPMENT BANK

                              By: /s/ Bernardo Frydman
                                  -------------------------------
                              Name:  Bernardo Frydman
                              Title: Deputy Manager, Private Sector Department

                        TRANSFER RESTRICTIONS AGREEMENT<PAGE>

                                                                   EXHIBIT 10.13

                                                                       EXECUTION
                                                                     COUNTERPART

                                                      EDC LOAN NO. 880-CHIL-7078
                                                         IDB LOAN NO. 1227/0C-CH

================================================================================

                  AMENDED AND RESTATED PERFORMANCE UNDERTAKING

                          Dated as of December 22, 1999

                                      among

                                SR TELECOM INC.,

                         EXPORT DEVELOPMENT CORPORATION

                                       and

                         INTER-AMERICAN DEVELOPMENT BANK

================================================================================

<PAGE>

                  AMENDED AND RESTATED PERFORMANCE UNDERTAKING (this
"Agreement"), dated as of December 22, 1999. among SR TELECOM INC., a
corporation duly organized and validly existing under the laws of Canada
("SRT"), EXPORT DEVELOPMENT CORPORATION, a corporation established by an Act of
the Parliament of Canada ("EDC"), and INTER-AMERICAN DEVELOPMENT BANK, an
international organization established by the Articles of Agreement among its
member countries ("IDB", together with EDC, the "Senior Lenders").

                                   WITNESSETH

                  WHEREAS, Comunicacion y Telefonia Rural S.A., a sociedad
anonima duly organized and validly existing under the laws of Chile and the
indirectly, wholly-owned Subsidiary of SRT (the "Borrower"), has undertaken to
design, construct, install and operate a rural telecommunications network in
nine primary zones of Chile (the "Project");

                  WHEREAS, in order to finance the development and construction
of the Project, the Borrower has requested that EDC and IDB separately make
loans to it in an aggregate principal amount not exceeding $50,000,000;

                  WHEREAS, in order to finance a portion of the Project, the
Borrower and EDC are parties to an Amended and Restated Loan Agreement dated as
of the date hereof (the "EDC Loan Agreement"), providing, subject to the terms
and conditions thereof, for a loan to be made by EDC to the Borrower in an
aggregate amount not exceeding $25,000,000;

                  WHEREAS, in order to finance a portion of the Project, the
Borrower and IDB are parties to a Loan Agreement dated as of the date hereof
(the "IDB Loan Agreement" together with the EDC Loan Agreement, the "Senior Loan
Agreements"), providing, subject to the terms and conditions thereof, for a loan
to be made by IDB to the Borrower in an aggregate amount not exceeding
$25,000,000;

                  WHEREAS, to induce the Senior Lenders to enter into their
respective Senior Loan Agreements and as a condition precedent under the Common
Agreement, SRT has, inter alia, entered into this Agreement with the Senior
Lenders to undertake certain obligations for the benefit of the Senior Lenders;

                  NOW, THEREFORE, in consideration of the premises and of the
execution of the Senior Loan Agreements and for the making of the loans
thereunder, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, SRT agrees with the Senior Lenders
as follows:

                                    SECTION 1

                         DEFINITIONS AND INTERPRETATION

                  Section 1.01 Definitions. Each capitalized term used herein
(including the preamble and recitals hereto) and not otherwise defined herein
shall have the meaning assigned

                             Performance Undertaking

<PAGE>

                                      - 2 -

to that term in Appendix A to the Amended and Restated Direct Agreement dated as
of the date hereof (the "Direct Agreement") among SRT, the Borrower and the
Senior Lenders. For purposes of Section 2.01 (a), the following terms shall have
the following meanings:

                  "Installed Lines" means, collectively, (a) Public Telephone
Lines and (b) Private Telephone Lines for which the Borrower has collected from
the subscriber thereto a minimum deposit of 44,700 Chilean Pesos.

                  "Force Majeure Event" means any act, event or condition that
causes delay in or failure of performance of obligations under this Agreement,
to the extent that such act, event or condition (a) is beyond the reasonable
control of SRT or the Borrower, (b) is not the result of any acts, omissions or
delays of SRT or the Borrower (or any third Person over whom SRT or the Borrower
has control, including any subcontractor), (c) is not an act, event or
condition, the risks or consequences of which SRT or the Borrower has expressly
agreed to assume hereunder and (d) cannot be cured, remedied, avoided, offset,
negotiated or otherwise overcome by the prompt exercise of due diligence of SRT
or the Borrower (or any third Person over whom SRT or the Borrower has control,
including any subcontractor). Force Majeure Events shall include the following
(if the requirements described in clauses (a) through (d) of the above sentence
are satisfied): hurricane, fire, tornado, landslide, earthquakes, acts of a
public enemy, plague or other epidemics, war, insurrection, riot or civil
disturbance, strikes (but excluding strikes limited to the activities of the
Project), an unreasonable failure to obtain any necessary Governmental Approval
from any Governmental Body provided that proper and timely application was made
therefor, payment of all necessary fees and charges was made and diligent and
continuous pursuit of such authorization or approval has been made, all in light
of the schedule for Completion of Network Construction (as defined in Section
2.01(a)) and the effect of delays thereon. Notwithstanding the foregoing, Force
Majeure Events shall not include (i) weather conditions which could reasonably
be anticipated by experienced contractors in Chile, (ii) any site conditions or
event arising therefrom, (iii) the occurrence of any manpower or material
shortages or (iv) any delay or failure (direct or indirect) in obtaining
materials, or any other delay, default or failure (financial or otherwise) of a
subcontractor, vendor or supplier except if such delay, default or failure
results from any act, event or condition which would, with respect to such
subcontractor, supplier or vendor, as the case may be, constitute a Force
Majeure Event if this definition were applicable to such subcontractor, supplier
or vendor.

                  "Private Telephone Line" means any installed and in-service
telephone line with dial tone of the Borrower which is not a Public Telephone
Line.

                  "Public Telephone Line" means any installed and in-service
coin operated telephone line with dial tone of the Borrower.

                  Section 1.02 Interpretation. The rules of interpretation set
out in the Direct Agreement shall apply mutatis mutandis to this Agreement as if
set out in full herein.

                             Performance Undertaking

<PAGE>

                                      - 3 -

                                    SECTION 2

                             PERFORMANCE UNDERTAKING

                  Section 2.01 Undertakings.

                  (a)      Completion. SRT hereby irrevocably and
unconditionally undertakes to cause the "Completion of Network Construction",
which, for the purposes hereof, means that:

                           (i)      the Borrower shall have at least 22,500
                  Installed Lines, of which (A) 19,500 must be Private Telephone
                  Lines and (B) 3,000 must be Public Telephone Lines, in each
                  case, by December 31, 2000, which date may be extended with
                  the written consent of the Senior Lenders if a Force Majeure
                  Event has occurred in the sole determination of the Senior
                  Lenders;

                           (ii)     the Borrower shall be in full compliance
                  with the terms and conditions, including, without limitation,
                  the timing requirements, of each of the Concessions,
                  (including, without limitation, as such Concessions have been
                  modified by Acta de Notificacion No. 31,208-98 dated September
                  29, 1998 given and signed by the Minister of Transport and
                  Telecommunications for Chile);

                           (iii)    all the insurance policies required by
                  Section 8.04 of the Common Agreement are in place and
                  effective;

                           (iv)     all Governmental Approvals required for the
                  operation of the Project have been obtained and remain fully
                  effective;

                           (v)      the Independent Engineer shall have provided
                  a certificate substantially in the form of Exhibit A; and

                           (vi)     the Borrower shall certify to the Senior
                  Lenders that all aspects of the EHSM Plan have been fully
                  implemented.

                  (b)      Assistance. In addition to any other assistance
(monetary or otherwise) which SRT is obliged to provide to the Borrower pursuant
to the terms of the Transaction Documents (including, without limitation, the
provision of any necessary funding pursuant to the Project Funds Agreement), in
order to satisfy the undertaking set forth in Section 2.01 (a), SRT agrees:

                           (i)      to provide to the Borrower certain of its
                  employees to perform necessary tasks;

                           (ii)     to provide to the Borrower any necessary
                  advice and managerial, technical, engineering, accounting and
                  operational systems and assistance;

                           (iii)    to sell or otherwise make available to the
                  Borrower sufficient equipment, including without limitation,
                  SR500 microwave transmission systems and wireless local loop
                  equipment;

                             Performance Undertaking

<PAGE>

                                      - 4 -

                           (iv)     to pay to the Borrower (which the Borrower
                  shall pay to SUBTEL) any fines, penalties or other levies
                  imposed on the Borrower by SUBTEL to the extent that the
                  Borrower has insufficient funds to pay any such fines,
                  penalties or other levies, (A) for delays or non-completion in
                  the Completion of Network Construction and for failure to
                  operate the Project in compliance with the Concessions and (B)
                  pursuant to terms and in amounts that mirror the fines,
                  penalties or other levies for the breaches noted in clause (A)
                  to be paid by the Borrower to SUBTEL under each of the
                  Concessions;

                           (v)      to ensure that no Concession is terminated
                  prior to the stated term thereof due to a failure of the
                  Borrower to comply with the Borrower's obligations under such
                  Concession; and

                           (vi)     to take any other action necessary.

                  Section 2.02 Waiver of Acceptance. SRT expressly waives notice
of acceptance of this Agreement and notice of any liability to which it may
apply. SRT also expressly waives any requirement that the Senior Lenders exhaust
any right, power or remedy, or proceed, against the Borrower under any
Transaction Document or any other agreement or instrument referred to therein,
or against any other Person under any other guarantee or security of the Senior
Lenders.

                  Section 2.03 Unconditional Undertakings. SRT's obligations
under this Agreement are absolute, unconditional and irrevocable and shall
remain in full force and effect without regard to, and SRT's obligations herein
will not be affected by:

                           (a) any actual or asserted lack of value,
         genuineness, validity, regularity or enforceability of the obligations
         of the Borrower under any of the Transaction Documents or any other
         agreement or instrument referred to herein or therein;

                           (b) any amendment of this Agreement or any of the
         other Transaction Documents, or waiver of, or consent to or departure
         from, any provision of this Agreement or any of the other Transaction
         Documents;

                           (c) the occurrence of any event or circumstance
         (including Borrower default) which could excuse SRT from performing its
         obligations under the Technical Services Agreement; or

                           (d) any breach, failure to perform or other action or
         inaction by either the Borrower or SRT under any of the Transaction
         Documents to which it is a party, or any breach, failure to perform or
         other action or inaction by any Governmental Body or by SUBTEL pursuant
         to the Concessions.

                             Performance Undertaking

<PAGE>

                                      - 5 -

                                    SECTION 3

                         REPRESENTATION AND WARRANTIES

                  SRT confirms the representations and warranties contained in
Section 4 of the Direct Agreement, which representations and warranties are
incorporated herein by reference as if fully set forth in this Agreement.

                                    SECTION 4

                                 MISCELLANEOUS

                  Section 4.01. Termination. This Agreement shall terminate on
the earlier of (a) the date on which Completion of Network Construction has
occurred to the satisfaction of the Senior Lenders; and (b) the date on which
(i) all of the Commitments have been reduced to zero or have expired and (ii)
all of the Borrower's obligations under the Senior Loan Agreements are
indefeasibly paid in full. Upon the termination of this Agreement, the
obligations of the parties hereto shall terminate.

                  Section 4.02. Severability. If any provision of this Agreement
shall be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or
impaired thereby. If any provisions of this Agreement shall be invalid, illegal
or unenforceable in any jurisdiction, the validity, legality and enforceability
of such provision shall not in any way be affected or impaired in any other
jurisdiction thereby.

                  Section 4.03. Notices. Any notice, claim, request, demand,
consent designation, direction, instruction, certificate, report or other
communication to be given hereunder shall be given in writing in the English
language (or accompanied by an accurate English language translation upon which
the recipient shall have the right to rely for all purposes) and will be deemed
duly given when (a) personally delivered, (b) sent by facsimile transmission
(but only if, immediately after the transmission, the sender's facsimile machine
records in writing the correct answerback) or (c) ten days have elapsed after
mailing by certified or registered mail, postage prepaid, in each case addressed
to a party at its address or facsimile transmission number as set forth below or
to another address or facsimile number of which that party has given notice.
Notice of address or facsimile number change shall be effective only upon
receipt.

                  If to SRT:

                  8150 Trans Canada Highway
                  St. Laurent, Quebec, H4S 1M5
                  Attention: President & CEO
                  Telecopier: 514-335-2035

                             Performance Undertaking

<PAGE>

                                      - 6 -

                  If to EDC:

                  151 O'Connor Street
                  Ottawa, Ontario
                  Canada, KlA 1K3
                  Attention: Loans Operations
                  Telecopier: 613-598-2514

                  If to IDB:

                  Private Sector Department
                  Inter-American Development Bank
                  1300 New York Avenue, N.W.
                  Washington, DC 20577
                  Attention:  Loan Administration Unit
                  Telecopier: 202-623-3639

                  Section 4.03 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

                  Section 4.04 Jurisdiction, Service of Process and Venue. The
provisions of Section 9(i), (j), (k) and (l) of the Direct Agreement are
incorporated herein by reference as if fully set forth in this Section 4.04.

                  Section 4.05 WAIVER OF JURY TRIAL. EACH PARTY HERETO
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND
ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO
THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

                  Section 4.06 Amendments. This Agreement may be amended only by
an agreement in writing executed by each of the parties hereto.

                  Section 4.07 Expenses. SRT shall be liable for all
out-of-pocket expenses of the Senior Lenders (including the reasonable fees and
expenses of counsel for the Senior Lenders) incurred in connection with the
enforcement of this Agreement.

                  Section 4.08 Benefit of Agreement. Nothing in this Agreement,
express or implied, shall give to any Person, other than the parties hereto and
their successors and permitted assigns hereunder and under any Transaction
Document, any benefit or any legal or equitable right or remedy under this
Agreement.

                  Section 4.09 Remedies. No remedy herein conferred upon the
Senior Lender is intended to be exclusive of any other remedy and each and every
such other remedy shall be cumulative and shall be in addition to every other
remedy given hereunder or now or hereafter existing at law or in equity or by
statute or otherwise.

                             Performance Undertaking

<PAGE>

                                      - 7 -

                  Section 4.10 Effectiveness. This Agreement shall come into
full force and effect, and amend and restate, the Performance Undertaking dated
as of April 13, 1999 between SRT and EDC as of the date on which the EDC Loan
Agreement becomes effective in accordance with Section 6 thereof.

                  Section 4.11 Counterparts. This Agreement may be executed in
two or more counterparts, each of which shall be deemed to be an original but
all of which together shall constitute one and the same instrument.

                  Section 4.12 Headings. The headings in this Agreement are for
convenience of reference only and shall not limit or otherwise affect any of the
terms hereof.

                  Section 4.13 No Waiver. No failure on the part of the Senior
Lenders to exercise, and no course of dealing with respect to, and no delay in
exercising, any right, power or remedy hereunder shall operate as a waiver
thereof; nor shall any single or partial exercise by the Senior Lenders of any
right, power or remedy hereunder preclude any other or further exercise thereof
or the exercise of any other right, power or remedy.

                  Section 4.14. Successors and Assigns. This Agreement shall be
binding upon and enure to the benefit of the parties hereto and their respective
successors and assigns. SRT shall not assign or transfer any of its rights or
obligations hereunder.

                             Performance Undertaking

<PAGE>

                                      - 8 -

                  IN WITNESS WHEREOF, the parties hereto, by their officers duly
authorized, have caused this Performance Undertaking to be duly executed and
delivered as of the date first above written.

                                       SR TELECOM INC.

                                       By: /s/ W. Ronald Couchman
                                           ------------------------------
                                           Name:  W. Ronald Couchman
                                           Title: Chief Executive Officer

                                       By: /s/ David L. Adams
                                           -----------------------------
                                           Name:  David L. Adams
                                           Title: Chief Financial officer

                            Performance Undertaking

<PAGE>

                                      - 9 -

                                       EXPORT DEVELOPMENT CORPORATION

                                       By: /s/ Bruce Dunlop
                                           -------------------------------
                                           Name:  Bruce Dunlop
                                           Title: Financial Services Manager

                                       BY: /s/ Brian Craig
                                           -------------------------------
                                           Name:  Brian Craig
                                           TITLE: Financial Services Manager

                            Performance Undertaking

<PAGE>

                                     - 10 -

                                       INTER-AMERICAN DEVELOPMENT BANK

                                       By: /s/ Bernardo Frydman
                                           -------------------------------
                                           Name: Bernardo Frydman
                                           Title: Deputy Manager, Private Sector
                                           Department

                            Performance Undertaking

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