Document:

SEVERANCE AGREEMENT

 

This Severance Agreement is entered into this 15th day of April, 2009 by and among Westell Technologies, Inc., a Delaware corporation and Westell, Inc., an Illinois corporation (collectively, “the Company”) and Amy T. Forster (“Executive”).

 

RECITALS

 

	
            A.
 	
            The Company desires to retain Executive and recognizes the valuable services the Executive has rendered and is expected to render in the future, and desires assurance the Executive will provide her active participation in the business of the Company; and
 

 

	
            B.
 	
            The Executive wishes to be continue to serve the Company but desires the assurances and benefits provided by this Agreement. 
 

 

NOW, THEREFORE, in consideration of the mutual agreements and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound, the Company and the Executive hereby agree as follows:

 

1.         Termination by Company with Severance Pay and Severance Benefits. The Company may at any time terminate Executive’s employment without Cause or reason, by delivery to Executive of a termination notice. Upon a termination of employment by the Company without Cause prior to the third anniversary of the date hereof that constitutes a separation from service (as defined in Section 409A of the Internal Revenue Code and the regulations and administrative guidance issued thereunder (collectively “Section 409A”)), Executive shall be entitled to Severance Pay and Severance Benefits upon execution (within 30 days from the date of such termination) and effectiveness of a general release of the Company and its affiliates in the form attached as Exhibit A hereto and the expiration of any revocation period
thereunder without revocation.

 

Such Severance Pay and Severance Benefits are in lieu of and not in addition to any post termination payments or benefits to which Executive may otherwise be entitled in accordance with Company policy, practice or any other agreement. 

 

2.         Termination without Severance Pay or Severance Benefits. The Company may at any time terminate the Executive for Cause, effective upon delivery to the Executive of a termination notice. Executive shall not be entitled to Severance Pay or Severance Benefits if the Executive dies or resigns her position , is terminated by the Company for Cause at any time, or is terminated on or after the third anniversary of the date hereof, regardless of reason. 

 

3.         Forfeiture of Severance Pay and Severance Benefits. If Executive shall breach (other than an immaterial and inadvertent breach) any obligation of confidentiality, nondisclosure or nonsolicitation under this or any other written agreement in effect 

 

between Executive and the Company or its affiliates, then in addition to any rights the Company has under those agreements to enjoin action and recover damages, the Company shall be released from any further obligation to pay Severance Pay or provide Severance Benefits to the Executive. 

 

4.         No Obligation to Seek Further Employment. Executive shall not be required to seek other employment, nor shall the amount of any Severance Payment provided hereunder be reduced by any compensation earned by the Executive by virtue of other employment after the date of termination of Executive’s employment with the Company.

 

5.         Effect on Other Contractual Rights. The provisions of this Agreement, and any payment provided hereunder, shall not reduce any amounts otherwise payable, or in any way diminish Executive’s existing rights to COBRA benefits or vested benefits under retirement plans of the Company, but except for stock option matters, are provided in lieu of any other termination benefits or severance payment obligations under any policy or practice of the Company now or hereafter in effect.. 

 

6.         Confidential Information. Executive acknowledges that the information, observations and data obtained by her during the course of her employment by the Company concerning the affairs of the Company and its affiliates (the “ Company Information”) are confidential and are the property of the Company or its affiliates.. Executive hereby agrees that she shall not disclose to any unauthorized person or use for her own account or for the account of any third party any Company Information without the Company’s written consent, unless and then only to the extent it becomes generally known to and available for use by the public other than as a result of Executive’s acts or failure to act. Executive shall use her best efforts to prevent the unauthorized misuse, espionage, loss or theft of the
Company Information. Executive further agrees to deliver to the Company at the termination of her employment, or at any other time the Company may request in writing, all memoranda, notes, plans, records, reports and other documents (and copies thereof) relating to Company that Executive may then possess or have under her control.

 

7.         No Solicitation. Whether or not Executive is entitled to Severance Pay or Severance Benefits, Executive shall not, for one year following termination: (a) induce or attempt to induce any person who is employed by the Company in any capacity to leave such person’s position, or in any way interfere with the relationship between the Company and such person, or (b) hire directly or through another entity, in any capacity, any person who was employed by the Company within 12 months prior to termination of Executive’s employment, unless and until such person has been separated from employment with the Company for at least six months.

 

	
            8.
 	
            Definitions:
 

 

	
             
 	
            “Severance Pay”
 	
            means an amount equal to nine months base salary at the base salary rate in effect for Executive as of the effective date of the termination, payable in regular installments at 
 

 

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the time salary would have been payable (with each payment being treated as a separate payment for purposes of Section 409A); provided, however, that such payments shall be deferred until the six-month anniversary of the date of Executive’s separation from service only to the extent that deferral to such anniversary date is required to comply with the provisions of Section 409A.

 

	
             
 	
            “Severance Benefits”
 	
            means continued benefits under COBRA for Executive and those of her dependents who were covered dependents as of the effective date of the termination, which the Company shall continue to pay for the Company portion of the required premium or contribution during the period in which the Executive is receiving severance payments from the Company in the amount which the Company was remitting on behalf of the Executive prior to her
termination. The Executive shall be required to continue to pay that portion of any premiums or contributions that the Executive was remitting prior to her termination to maintain such benefit (subject to any increases imposed by the benefit plan).
 

 

	
             
 	
            “Cause”
 	
            means “Cause” shall mean (i) the failure by Executive to comply with a particular directive or request from the Boards of the Company regarding a matter material to either company, and the failure thereafter by Executive to reasonably address and remedy such noncompliance within thirty (30) days (or such shorter period as shall be reasonable or necessary under the circumstances) following Executive’s receipt of written notice
from the Boards confirming Executive’s noncompliance; (ii) the taking of an action by Executive regarding a matter material to the Company, which action Executive knew at the time the action was taken to be specifically contrary to a particular directive or request from the Boards, (iii) the failure by Executive to comply with the written policies of the Company regarding a matter material to the Company, including expenditure authority, and the failure thereafter by Executive to reasonably address and remedy such noncompliance within thirty (30) days (or such shorter period as shall be reasonable or necessary under the circumstances) following Executive’s receipt of written notice from such Board confirming Executive’s noncompliance, but such opportunity to cure shall not apply if the failure is not curable; (iv) Executive’s engaging in willful, reckless or grossly negligent conduct or 
 

 

- 3 -

 

misconduct which, in the good faith determination of the Boards, is materially injurious to the Company or one or more of their subsidiaries, monetarily or otherwise; (v) the aiding or abetting or knowingly assisting any other person in aiding or betting a competitor or other breach by the Executive of her fiduciary duties to the Company or their subsidiaries for which she serves as officer or director; (vi) a material breach by Executive of her obligations of confidentiality or nondisclosure; (vii) the use or knowing possession by Executive of illegal drugs on the premises of the Company; or (viii) Executive is convicted of, or pleads guilty or no contest to, a felony or a crime involving moral turpitude.

 

9.         Notice. For purposes of this Agreement, notices and all other communications provided for in the Agreement shall be in writing and shall be deemed to have been duly given when delivered or mailed by United States registered mail, return receipt requested and postage prepaid, addressed, in the case of Executive, to her latest address in the Company records, and in the case of the Company, to the Company’s principal office, provided that all notice to the Company shall be directed to the attention of the Board of Directors with a copy to the Secretary of the Company, or to such other address as either party may have furnished to the other in writing in accordance herewith, except that notice of change of address shall be effective only upon receipt.

 

10.       Waiver, Amendment and Integration. No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing signed by the Executive and the Company. No waiver by either party at any time of any breach by the other party of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. No agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party which are not set forth expressly in this Agreement. This Agreement sets forth the complete agreement of the Company with regard to any post termination payment and benefits.

 

11.       Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Illinois, excluding conflicts of law principles.

 

12.       No Employment Contract. Nothing in this Agreement shall be deemed to constitute a contract or guaranty of employment or alter the at-will status of Executive’s employment.

 

13        Validity. The invalidity or unenforceability of any provisions of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect.

 

- 4 -

 

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

 

15.       Tax Effect. All payments and benefits provided hereunder shall be provided net of applicable withholding.

 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date.

 

Westell Technologies, Inc..

 

By: /s/ Richard Gilbert

Title:  Chief Executive Officer

 

Westell, Inc.

 

By: /s/ Richard Gilbert

Title:  Chief Executive Officer

 

/s/ Amy T. Forster

Amy T. Forster

 

- 5 -

 

EXHIBIT A

GENERAL RELEASE AGREEMENT

 

This General Release (“Agreement”) is entered into by and between Westell Technologies, Inc. (the “Company”) and Amy T. Forster (the “Executive”) on ______________. 

 

In consideration of the mutual promises set forth below, the Company and Executive agree and covenant as follows:

 

1.         Executive, hereby resigns from all board seats and officer positions with the Company, its parent and any other and any entity for which she has been so serving at the Company’s request.

 

2.         Executive hereby on behalf of herself and her heirs, executors, administrators, attorneys, successors and assigns, hereby remises, releases, forever discharges and covenants not to sue the Company, its subsidiaries, and their current and former shareholders, directors, officers, attorneys, agents, employees, successors and assigns (the “Released Parties”), with respect to all claims, suits, demands, actions or causes of action of any kind or nature whatsoever, whether the underlying facts are known or unknown, which Executive has had or now claims, pertaining to or arising out of Executive’s employment by the Company or Executive’s separation from employment with the Company, whether under any local, state or federal common law, statute, regulation or ordinance, including, without limitation, Title VII of the Civil Rights Act of 1964, as
amended, the Age Discrimination in Employment Act, as amended (including the Older Workers Benefit Protection Act), 42 U.S.C. § 1981, the Civil Rights Act of 1991, the Family and Medical Leave Act, the Americans with Disabilities Act, the Employee Retirement Income Security Act, the Equal Pay Act, and the Illinois Human Rights Act, and any tort, contract or quasi-contract claims, except as hereinafter stated, or to any Workers’ Compensation Act claim Executive may have.

 

Nothing herein shall however constitute a release by Executive of her rights under the Severance Agreement dated March ___, 2009 that arise in connection with termination without Cause, nor shall it release the Company from any indemnification obligations it may have under Delaware law or the Company’s certificate of incorporation or bylaws with respect to Executive’s role as an officer or director of the Company from any indemnification obligations it may have under Delaware law or its certificate of incorporation or bylaws with respect to Executive’s role as an officer or director of the Company, or any vested benefits under the Company’s qualified benefit plans.

 

3.         Subject to the such time constraints and other limitations as may be imposed on Executive by her business and personal commitments and obligations, Executive agrees to cooperate fully in any investigation or other legal proceeding relating to the Company, its subsidiaries or any of their parents or former parents with respect to any matter that arose during her employment with the Company, or that may involve matters within her knowledge. If any claims are asserted by the Company or any of the Released Parties against a third party (or by a third party against the Company or any of the Released 

 

Parties) regarding such a matter, Executive agrees to cooperate fully in the prosecution or defense of such claim by the Company and any of the Released Parties without additional charge other than reimbursement for out of pocket expenses.

 

4.         Executive represents that Executive has not filed any charges, suits, claims or complaints against the Released Parties and agrees not to do so in the future with respect to any such claims. 

 

5.         Executive understands and expressly acknowledges that she is not releasing or waiving any rights or claims that may arise after the date this Agreement is executed. Executive understands and expressly acknowledges that, in exchange for Executive’s entry into this Agreement, Executive is receiving consideration in addition to anything of value to which Executive is already entitled.

 

6.         Executive acknowledges that the Company has advised Executive to consult an attorney, at Executive’s expense, with respect to this Agreement. Executive further acknowledges that Executive has twenty-one (21) days from receipt of this Agreement to accept and sign this Agreement and that Executive has seven (7) days to revoke acceptance of this Agreement, including its waiver and release provisions after signing it. Notice of such revocation shall be provided to the attention of the vice president of Human Resources of the Company. Executive further acknowledges that Executive may waive the twenty-one day consideration period by requesting and executing a form for that purpose. The form may be requested from the vice president of Human Resources. This Agreement shall not become effective until the revocation period has expired.

 

7.         This Agreement is not, and shall not in any way be construed as, an admission by the Company that it has acted wrongfully with respect to Executive.

 

8.         Executive acknowledges that she has carefully read and fully understands all of the provisions of this Agreement, and that she is knowingly, voluntarily and willfully entering into this Agreement. 

 

9.         Executive acknowledges that in executing this Agreement, Executive has not relied upon any representation by the Company that is not set forth in this Agreement or in the Severance Agreement.

 

10.       This Agreement shall be construed and enforced pursuant to the substantive laws of the State of Illinois without regard to any state’s conflicts of laws principles.

 

IN WITNESS WHEREOF, the parties have executed this Agreement on the date set forth above.

 

	
            Westell Technologies, Inc
 	
            Executive
 

 

	
            ______________________________
 	
            ____________________________
 

By:

Title:

 

- 2 -Exhibit
4.13

       

      
        
          	
                  

                	
                                           
      

                    Telefónica
      de Argentina S.A.

                  

                

        

      

      
        

        PROSPECTUS FOR THE MERGER OF
TELEFONICA DATA ARGENTINA S.A. INTO TELEFONICA DE ARGENTINA S.
A.

        

        This prospectus
dated February 16th, 2009,
(hereinafter referred to as “the PROSPECTUS”) has been drawn up by the Board of
Directors of Telefónica de Argentina S.A. (hereinafter referred to as TASA)
pursuant to the provisions of Resolution No. 368/01 of the Comisión Nacional de Valores
(Argentine SEC), Law 19,550 as amended, sections 77 and 78 of Income Tax Law,
Section 105 and subsequent sections of its regulatory decree, and other rules
applicable thereto.

        

        The Boards of
Directors of TASA and TELEFONICA DATA ARGENTINA S.A. (hereinafter referred to as
DATA), in the meetings they held on February 16th, 2009,
approved the relevant Prior Merger Commitment, also dated February 16th, 2009;
the financial statements of TASA as of December 31st, 2008;
the financial statements of DATA as of December 31st, 2008;
the Special Consolidated Balance Sheet of the Merger as of December 31st, 2008;
and resolved to submit to the shareholders a proposal for approval of the merger
of DATA into TASA, as per the method suggested by the relevant Boards of
Directors, by convening the relevant Special Shareholders’ Meetings for April
20th, 2009,
in order to transact the following items, without limitation, on the
Agenda:

        

        
          	
                   
      

                	
                  1.

                	
                   Consideration of
      the merger of Telefónica Data Argentina S.A. into Telefónica de Argentina
      S.A.

                

        

        

        
          	
                   
      

                	
                  2.

                	
                  Consideration
      of the Financial Statements of Telefónica de Argentina S.A. as of December
      31st,
      2008.

                

        

        

        
          	
                   
      

                	
                  3.

                	
                  Consideration
      of the Financial Statements of Telefónica Data Argentina S.A. as of
      December 31st,
      2008.

                

        

        

        
          	
                   
      

                	
                  4.

                	
                  Consideration
      of the Special Consolidated Balance Sheet of the Merger as of December
      31st,
      2008.

                

        

        

        
          	
                   
      

                	
                  5.

                	
                  Consideration
      of the Prior Merger Commitment and authorization to sign the Final Merger
      Agreement.

                

        

        

        The date of this
Prospectus is February 16th,
2009.

         

         

        
 

        
          
            
            

          

          
            Merger
Prospectus - 1 of 10

            
              

            

          

          
            
            

          

        

        

        
          	
                  

                	
                                           
      

                    Telefónica
      de Argentina S.A.

                  

                

        

        
 

        1.
MAIN FEATURES OF THE
MERGER

        

        There follows a
summary of the main features of the merger suggested by the Directors of TASA
and DATA to the shareholders.

        

        Reorganization
Type:

        Merger

         

        Amalgamation Successor
Company:

        Telefónica de
Argentina S.A. (TASA).

         

        Amalgamation
Taken-over Company:

        Telefónica Data
Argentina S.A. (DATA).

         

        Date of Prior Merger
Commitment:

        February 16th,
2009.

        
Date of Financial Statements
of TASA and DATA:

        December 31st,
2008.

        

        Date of Special Consolidated
Balance Sheet of the Merger:

        December 31st,
2008.

        

        Peso (AR$)-denominated
Shareholders’ Equity as of December 31st, 2008:

        DATA:
236,168,082

        TASA:
2,538,505,777

        

        

        

        

        
          
            
            

          

          
            Merger
Prospectus - 2 of 10

            
              

            

          

          
            
            

          

        

         

        
          	
                  

                	
                                           
      

                    Telefónica
      de Argentina S.A.

                  

                

        Exchange
Relationship:

        Considering that
TASA’s controlling interest in DATA is 100%, no share exchange relationship is
to be established on account of the merger, and, therefore, there will be no
capital stock increase for TASA due to the merger.

        

        Date of Corporate
Reorganization:

        The reorganization
will be effective as from January 1st,
2009.

        

        Date of TASA’s Special
Shareholders’ Meeting:

        April 20th,
2009.

        

        Date of DATA’s Special
Shareholders’ Meeting:

        April 20th,
2009.

         

         

        
          
            
            

          

          
            Merger
Prospectus - 3 of 10

            
              

            

          

          
            
            

          

        

         

        
          	
                  

                	
                                           
      

                    Telefónica
      de Argentina S.A.

                  

                

        2.
COMPANIES TAKING PART
IN THE MERGER

        

        TASA and DATA are
companies duly organized under the Argentine laws, validly existing and
registered with the Inspección
General de Justicia (National Corporation Office) of the City of Buenos
Aires.

        

        DATA was organized
in Argentina as a Corporation (Sociedad Anónima under the
Argentine legislation) for a term of 99 years under the name of TX-DX Argentina
Comunicaciones S.A., and was registered with the Inspección General de
Justicia on May 12, 1997, under No. 4771, Book 121, Volume “A” of
Corporations. The change of the corporate name to ADVANCE TELECOMUNICACIONES
S.A. was registered with the Inspección General de
Justicia, under No. 11,011 of Book 122, Volume “A” of Stock Company, on
September 29th,
1997.  Furthermore, the current corporate name TELEFONICA DATA
ARGENTINA S.A. was registered with the Inspección General de
Justicia on April 11th,
2002.

        

        TASA was organized
in Argentina as a Corporation (Sociedad Anónima under the
Argentine legislation) for a term of 99 years, and was registered with the Inspección General de
Justicia, under No. 4535, Book 108, Volume “A” of Stock Companies, on
July 13th,
1990.

        

        DATA is a company
under the control of TASA, which owns 100% of the block of shares.

         

         

        
          
            
            

          

          
            Merger
Prospectus - 4 of 10

            
              

            

          

          
            
            

          

        

         

        
          	
                  

                	
                                           
      

                    Telefónica
      de Argentina S.A.

                  

                

        3.
- EXPLANATION OF THE
REASONS BEHIND THE MERGER

        

        After having
reviewed the possible advantages of the merger, the Directors of the companies
taking part in the merger resolved to suggest the merger of DATA into TASA to
their shareholders.

        In the meeting held
thereby on February 16th, 2009,
the Board of Directors of DATA unanimously resolved to convene a Special
Shareholders’ Meeting for April 20th, 2009,
so as to consider the merger of DATA into TASA, as per the terms of the Prior
Merger Commitment, passed that February 16th, 2009,
and attached hereto in the form of EXHIBIT A.  In turn, TASA, by means
of Minutes of Board of Directors’ Meeting dated February 16th, 2009,
has set forth that the items on the Agenda to be transacted on the Special
Shareholders’ Meeting convened for April 20th, 2009,
shall include, without limitation, consideration of the aforementioned
merger.

        

        Note that the fact
that TASA has a 100% controlling interest in DATA was one of the circumstances
taken into account.

        

        Furthermore, it is
worth mentioning that the merger will help centralize the companies’ business
management within a single corporate organization, that is, standardize and
coordinate management of merged activities, allowing due planning and preventing
duplication of expenses with a lesser impact of fixed costs. Furthermore, this
also will help improve business management, technical operations, customer care
services, streamline sales actions and develop synergy between:

        

        
          	
                   
      

                	
                  Ø

                	
                  Economies of
      scale resulting from the integration of the telecommunications networks of
      the companies being merged;

                

        

        
          	 	 	 
	
                   
      

                	
                  Ø

                	
                  Improvement
      of supplier engagement conditions;

                

        

        
          	 	 	 
	
                   
      

                	
                  Ø

                	
                  Saving of
      costs related to business activity
amalgamation;

                

        

        
          	 	 	 
	
                   
      

                	
                  Ø

                	
                  Reduction of
      time required to develop a market for new goods and services which would
      translate to greater customer
satisfaction;

                

        

        
          	 	 	 
	
                   
      

                	
                  Ø

                	
                  An increase
      in strategic, operational and financial flexibility of corporate business;
      and

                

        

        
          	 	 	 
	
                   
      

                	
                  Ø

                	
                  Creation of a
      more convenient business structure for tax
  purposes.

                

        

         

         

        
          
            
            

          

          
            Merger
Prospectus - 5 of 10

            
              

            

          

          
            
            

          

        

        

          	
                  

                	
                                           
      

                    Telefónica
      de Argentina S.A.

                  

                

        

        

        
           

          4.
EQUITY, ECONOMIC AND
FINANCIAL IMPACT ON THE AMALGAMATION SUCCESSOR COMPANY

        

        

        Accounting
Information:

        

        In compliance with
the provisions of the Business Company Law and other rules applicable to this
matter, TASA and DATA prepared the following financial statements: i) Financial
Statements of DATA as of December 31st, 2008;
ii) Financial Statements of TASA as of December 31st, 2008;
and iii) Special Consolidated Balance Sheet of the Merger as of December 31st,
2008.  The financial statements have been prepared by the relevant
business managers of the companies taking part in the merger, as per the
statutory and regulatory rules applicable thereto, and are accompanied, in each
case, by the relevant report issued by the Statutory Committee.

        Such financial
statements and Special Consolidated Balance Sheet of the Merger are intended to
show the financial position of DATA and TASA as of December 31st, 2008,
before and after the merger.

        

        Capital
Stock:

        

        As a result of the
merger of the entire shareholders’ equity of DATA into TASA, and considering
that TASA holds 100% of the shares of DATA, no increase will apply to TASA’s
capital stock. Hence, TASA will not issue any share in order to increase or
decrease capital stock pursuant to the provisions of Sections 220 and 221 of Law
19,550.

        

         

         

        
          
            
            

          

          
            Merger
Prospectus - 6 of 10

            
              

            

          

          
            
            

          

        

         

        
          	
                  

                	
                                           
      

                    Telefónica
      de Argentina S.A.

                  

                

        5.
MERGER
PROPOSAL

        

        5.1.
Prior Merger
Commitment

        

        Structure:

        

        Pursuant to the
resolution adopted by the Directors of DATA and TASA in the relevant meetings
they held on February 16th, 2009,
the companies taking part in the merger have decided to submit to their
shareholders a proposal for approval of the merger of DATA into
TASA.

        

        The merger will
embrace every DATA’s activity, credit, brand, right, and
obligation.

        

        DATA’s capital
stock amounts to AR$ 325,689,362, represented by 3,256,893 registered common
shares of stock, AR$ 100 par value each and entitled to 1 vote per share. Given
that the amalgamation successor company has a controlling interest of 100% in
DATA, TASA does not increase its capital stock.

        

        The aforementioned
merger will be implemented pursuant to the terms of the Prior Merger Commitment
entered into by DATA and TASA on February 16th, 2009,
identified as Exhibit A to this Prospectus.

        

        The financial
statements prepared for the purposes of this merger, that is: i) Financial
Statements of DATA as of December 31st, 2008;
ii) Financial Statements of TASA as of December 31st, 2008;
and iii) Special Consolidated Balance Sheet of the Merger as of December 31st, 2008,
have been prepared on standardized bases and identical appraisal criteria
approved by the relevant Boards of Directors.

        

        Exchange
Relationship:

        

        Considering that
TASA’s controlling interest in DATA is 100%, no share exchange relationship is
to be established on account of the merger, and, therefore, there will be no
capital stock increase for TASA due to the merger.

        

        

        5.2
Merger
Impacts

        

        Effective
Date of Corporate Reorganization:

         

         

        
          
            
            

          

          
            Merger
Prospectus - 7 of 10

            
              

            

          

          
            
            

          

        

        

          	
                  

                	
                                           
      

                    Telefónica
      de Argentina S.A.

                  

                

        

        

        The reorganization
will be effective as from January 1st,
2009.  Any transaction carried out by DATA thereafter and prior to
corporate reorganization completion will be deemed to be carried out on account
and by order of TASA.

        

        Date
Merger Becomes Enforceable:

        

        This merger will
become enforceable upon approval thereof by the shareholders of the companies
taking part in the merger and the pertinent regulatory agencies (Comisión Nacional de
Valores, Inspección
General de Justicia and Buenos Aires Stock Exchange) and registration
thereof with the relevant registries.

        

        TASA’s
By-laws:

        

        TASA will not
change its corporate purpose and will be the legal-economic successor as to the
assets to be transferred by virtue of this merger process.

        

        Value
of DATA’s Assets:

        

        DATA’s assets will
be transferred as per the book value thereof.

        

        Taxes:

        

        This merger process
is executed free of taxes and pursuant to the terms and conditions of Sections
77 and 78 of Income Tax Law, and Section 105 and subsequent sections of its
regulatory decree, being then entitled to the benefits foreseen in the
aforementioned rules.

        

        Merger-related
Expenses:

        

        The parties have
agreed that any expenses incurred thereby and any payment commitments undertaken
thereby prior to the execution of the Prior Merger Commitment, which
expenses/payment commitments they are to bear until merger completion, will be
fully borne by TASA.

        

        6.
- INFORMATION MADE AVAILABLE
TO THE SHAREHOLDERS

        

        Any amendment to
the information contained in this Prospectus will be immediately posted on the
Buenos Aires Stock Exchange Bulletin.

         

         

         

        
          
            
            

          

          
            Merger
Prospectus - 8 of 10

            
              

            

          

          
            
            

          

        

        

          	
                  

                	
                                           
      

                    Telefónica
      de Argentina S.A.

                  

                

        

         

         

        Copies of this
Prospectus, Prior Merger Commitment and Attached Balance Sheets will be made
available to the shareholders of Telefónica de Argentina S.A. and Telefónica
Data Argentina S.A., 10 calendar days in advance of the date of Shareholders’
Meetings that will transact the merger (convened for April 20th, 2009)
at Ingeniero Butty 240, 15th floor,
attention of Pablo Luis Llauró (54 11 5321-1834), Belén Wagener (5411 5321-1837)
and Mariano Rodríguez (54 11 5321-1835); and at Avenida Ingeniero Huergo 723,
5th
floor, attention of Irene Bertuzzi (5411 4332-3857).

        

         

        
 

        
          
            
            

          

          
            Merger
Prospectus - 9 of 10

            
              

            

          

          
            
            

          

        

         

        
          	
                  

                	
                                           
      

                    Telefónica
      de Argentina S.A.

                  

                

        

        EXHIBITS:

        

        EXHIBIT
A:

        Prior Merger
Commitment passed on February 16th,
2009.  (The prior commitment also includes the financial statements
attached hereto in the form of Exhibits B, C, and D.)

        

        EXHIBIT
B:

        Financial
Statements of DATA as of December 31st,
2008.

        

        EXHIBIT
C:

        Financial
Statements of TASA as of December 31st,
2008.

        

        EXHIBIT D: Special
Consolidated Balance Sheet of the Merger as of December 31st,
2008.

         

         

        Merger
Prospectus - 10 of 10

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