Document:

Ex-10.3

 

Exhibit 10.3

STATE OF NORTH CAROLINA

	 	 	 
	

	 	RESTRICTED STOCK UNIT
	COUNTY OF MECKLENBURG

	 	AWARD AGREEMENT

     THIS RESTRICTED STOCK UNIT AWARD AGREEMENT, entered into this 11th day of May 2005 (the “Grant
Date”), by and between Lance, Inc., a North Carolina corporation (the “Company”), and David V.
Singer (the “Executive”);

STATEMENT OF PURPOSE

     Effective as of the date hereof, the Company is hiring Executive to serve as the Company’s
President and Chief Executive Officer. In order to attract and retain Executive, the Company is
making an award to Executive of a number of “Restricted Stock Units” in accordance with, and
subject to, the terms and conditions of this Agreement.

     NOW, THEREFORE, in consideration of the Statement of Purpose and of the mutual covenants and
agreements herein set forth and of other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Company and Executive do hereby agree as follows:

     1. Definitions. As used in this Agreement, unless the context expressly indicates
otherwise, the following terms have the following meanings:

     “Affiliates” shall be as defined in the Compensation and Benefits Assurance
Agreement.

     “Board” shall be as defined in the Compensation and Benefits Assurance
Agreement.

     “Cash-Settled Units” as defined in Section 2 below means the Restricted Stock
Units other than the Stock-Settled Units.

     “Cause” shall be as defined in the Employment Agreement.

     “Change in Control” shall be as defined in the Compensation and Benefits
Assurance Agreement.

     “Common Stock” means the $.83-1/3 par value Common Stock of the Company or any
security of the Company issued in substitution, exchange or lieu thereof pursuant to
Section 6 hereof.

     “Company” as defined in the introduction to this Agreement means Lance, Inc.,
a North Carolina corporation, and any successor thereto.

 

 

     “Compensation and Benefits Assurance Agreement” means the Compensation and
Benefits Assurance Agreement between the Company and Executive dated as of the date hereof,
as the same may be amended from time to time.

     “Compensation Committee” means the Compensation Committee of the Board.

     “Disability” shall be as defined in the Employment Agreement.

     “Dividend Units” as defined in Section 3(a) below means certain additional
Restricted Stock Units credited in connection with certain dividend equivalent rights.

     “Employment Agreement” means the Executive Employment Agreement between the
Company and Executive dated as of the date hereof, as the same may be amended from time to
time.

     “Fair Market Value” with respect to a share of the Common Stock at a
particular time, shall be that value as reasonably determined by the Compensation Committee
which shall be (i) if such Common Stock is listed on a national securities exchange or
traded on the NASDAQ Stock Market, Inc., the mean between the highest price and the lowest
price at which the Common Stock shall have been sold regular way on a national securities
exchange or the NASDAQ Stock Market, Inc. on said date, or, if no sales occur on said date,
then on the next preceding date on which there were such sales of Common Stock, (ii) if the
Common Stock shall not be listed on a national securities exchange or traded on the NASDAQ
Stock Market, Inc., the mean between the bid and asked prices last reported by the National
Association of Securities Dealers, Inc. for the over-the-counter market on said date or, if
no bid and asked prices are reported on said date, then on the next preceding date on which
there were such quotations, or (iii) if at any time quotations for the Common Stock shall
not be reported by the National Association of Securities Dealers, Inc. for the
over-the-counter market and the Common Stock shall not be listed on any national securities
exchange or traded on the NASDAQ Stock Market, Inc., the fair market value determined by
the Compensation Committee in such manner as it reasonably determines.

     “Grant Date” as defined in the introduction to this Agreement means the date
hereof.

     “Qualifying Termination” shall be as defined in the Compensation and Benefits
Assurance Agreement.

     “Restricted Stock Unit” means a right to receive one share of Common Stock, or
cash equal to the Fair Market Value of one share of Common Stock, at
such time, and in accordance with such terms and conditions, as set forth in this
Agreement. Restricted Stock Units include Dividend Units.

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     “Section 409A” means Section 409A of the Internal Revenue Code of 1986, as
amended.

     “Stock-Settled Units” as defined in Section 2 below means 150,000 of the
original 300,000 Restricted Stock Units awarded on the Grant Date.

     2. Award of Restricted Stock Units. Effective as of the Grant Date, Executive is
awarded 300,000 Restricted Stock Units. Of the total award, 150,000 Restricted Stock Units shall
be deemed a “Restricted Unit Grant” under the Lance, Inc. 2003 Key Employee Stock Plan, and shall
be referred to herein as the “Stock-Settled Units.” The remainder of the Restricted Stock Units,
including any Dividend Units credited pursuant to Section 3(a) below, shall be referred to herein
as the “Cash-Settled Units.” Notwithstanding any provision herein to the contrary, the Company in
its discretion may at any time re-designate all or any portion of the Cash-Settled Units as
Stock-Settled Units to the extent permitted under the Lance, Inc. 2003 Key Employee Stock Plan, as
amended from time to time after the date hereof. The Company shall provide written notice to
Executive of any such re-designation within a reasonable period of time prior thereto.

     3. Dividend Equivalents; No Voting Rights.

          (a) Dividend Equivalents. If a cash dividend is paid with respect to the Common
Stock, Executive shall be credited as of the applicable dividend payment date with an additional
number of whole and fractional Restricted Stock Units (the “Dividend Units”) equal to (A) the total
cash dividend Executive would have received had the Restricted Stock Units (and any previously
credited Dividend Units with respect thereto) been actual shares of Common Stock divided by (B) the
Fair Market Value of a share of Common Stock as of the applicable dividend payment date. All
Dividend Units shall be become part of the aggregate Restricted Stock Units award hereunder when
credited to Executive, and therefore shall be subject to all of the terms and conditions of this
Agreement, including without limitation the vesting and payment provisions set forth in Sections 4
and 5 below.

          (b) No Voting Rights. Executive shall have no voting rights with respect to the
Restricted Stock Units.

     4. Vesting.

          (a) General. Subject to the provisions of subparagraph (b) below, the Restricted
Stock Units shall become fully (100%) vested on May 11, 2010 (i.e., the fifth anniversary of the
Grant Date) if Executive remains employed with the Company and its Affiliates through that date.

          (b) Termination of Employment Prior To Vesting. If Executive’s employment with the
Company and its Affiliates terminates prior to the above vesting date, then the Restricted Stock
Units shall become vested or be forfeited as follows:

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	 	(i)  	Death or Disability. The Restricted Stock Units
shall become fully (100%) vested if Executive’s employment with the Company
and its Affiliates terminates due to Executive’s death or Disability.
	 
	 	(ii)  	Termination by the Company Without Cause. The
Restricted Stock Units shall become vested pursuant to the following schedule
if Executive’s employment with the Company and its Affiliates is terminated by
the Company without Cause (including a termination by the Company as a result
of a notice by the Company of its decision not to extend the Employment
Agreement):

	 	 	 	 	 	 	 	 
	 
	 	If termination of employment by the	 	 	 	 
	 	Company without Cause occurs...	 	 	The vested percentage is...	 
	 	Prior to the 1st anniversary of the Grant
Date

	 	 	 	16.67	%	 
	 	On or after the 1st anniversary of the
Grant Date but prior to the 2nd
anniversary of the Grant Date

	 	 	 	33.33	%	 
	 	On or after the 2nd anniversary of the
Grant Date but prior to the 3rd
anniversary of the Grant Date

	 	 	 	50.00	%	 
	 	On or after the 3rd anniversary of the
Grant Date but prior to the 4th
anniversary of the Grant Date

	 	 	 	66.67	%	 
	 	On or after the 4th anniversary of the
Grant Date but prior to the 5th
anniversary of the Grant Date

	 	 	 	83.33	%	 
	 	On or after the 5th anniversary of the
Grant Date

	 	 	 	100.00	%	 
	 

	 	   	To the extent the Restricted Stock Units are not vested as of the
date of such termination of employment, the unvested Restricted Stock
Units shall automatically be forfeited as of such date. The applicable
vested percentage above shall be applied separately to the portion of the
award constituting the Stock-Settled Units and the portion of the award
constituting the Cash-Settled Units.
	 
	 	(iii)  	Termination by the Company With Cause. The
Restricted Stock Units shall be forfeited in their entirety if Executive’s
employment with the Company and its Affiliates is terminated by the Company
with Cause. Forfeiture shall occur automatically as of the date of such
termination of employment.
	 
	 	(iv)  	Resignation by Executive. The Restricted Stock Units
shall be forfeited in their entirety if Executive resigns from employment
with the Company and its Affiliates (including a termination by the
Executive as a result of a notice by the Executive of his decision

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	 	   	not to extend the Employment Agreement). Forfeiture shall occur automatically as
of the date of such termination of employment.
	 
	 	(v)  	Qualifying Termination. Notwithstanding any

provision herein to the contrary, in the event of a Qualifying Termination
following a Change in Control, the Restricted Stock Units shall become fully
(100%) vested as of the date of such Qualifying Termination.

     5. Payment of Restricted Stock Units.

          (a) Time of Payment. If Executive remains employed with the Company and its
Affiliates until the fifth anniversary of the Grant Date, then the Restricted Stock Units shall be
payable as soon as administratively practicable on or after the fifth anniversary of the Grant
Date. If Executive’s employment with the Company and its Affiliates terminates prior to the fifth
anniversary of the Grant Date, then the Restricted Stock Units, to the extent vested, shall be
payable as soon as administratively practicable on or after the date of Executive’s termination of
employment (subject, to the extent applicable, any requirement under Section 409A, to delay payment
for six months after termination of employment). Notwithstanding the foregoing, Executive and the
Company, through action of the Compensation Committee, may mutually determine a deferred payment of
any vested Restricted Stock Units in accordance with a written deferral election executed by
Executive and the Company within 30 days after the date hereof that is otherwise consistent with
the requirements of Section 409A.

          (b) Form of Payment. Subject to any deferral election pursuant to Section 5(a) above,
as of the applicable payment date, of the vested Restricted Stock Units then payable: (i)
Stock-Settled Units shall be payable by delivery of one share of Common Stock for each such
Stock-Settled Unit and (ii) Cash-Settled Units shall be payable in cash based on the Fair Market
Value of the Common Stock as of the applicable date. The shares of Common Stock to be delivered in
payment of vested Stock-Settled Units shall be deemed issued pursuant to the Lance, Inc. 2003 Key
Employee Stock Plan (and shall therefore count against the shares otherwise available under such
plan). In connection with a payment to be made as soon as administratively practicable after the
fifth anniversary of the Grant Date pursuant to the first sentence of Section 3(a) above, the
percentage of the award then payable shall be applied separately to the portion of the award
constituting the Stock-Settled Units and the portion of the award constituting the Cash-Settled
Units.

          (c) Compliance With Securities Laws. The shares of Common Stock shall be delivered to
Executive, pursuant to subparagraphs 5(a) and 5(b) above, unless counsel for the Company reasonably
determines that such issuance will violate applicable federal or state securities laws and the
Company has taken all reasonable steps necessary to avoid any such violation. The Company agrees
to use commercially reasonable efforts to ensure that such shares are issued to Executive on a
timely basis as provided herein. The certificates for shares of Common Stock delivered under this
Agreement may be subject to such stop-transfer orders and other restrictions as the Compensation Committee may
reasonably determine are required under the rules, regulations, and other

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requirements of the Securities and Exchange Commission, any stock exchange upon which the Common Stock is then listed,
and any applicable federal or state securities law. The Compensation Committee may cause a legend
or legends to be put on any such certificates to make appropriate reference to such restrictions.

     6. Adjustments Upon Changes in Capitalization.

          (a) No Limitation on Company Rights. The existence of the Agreement shall not affect
or restrict in any way the right or power of the Board or the stockholders of the Company to make
or authorize any adjustment, recapitalization, reorganization or other change in the Company’s
capital structure or its business, any merger or consolidation of the Company, any issue of bonds,
other debentures, preferred or prior preference stocks, the dissolution or liquidation of the
Company or any sale or transfer of all or any part of its assets or business, or any other
corporate act or proceeding.

          (b) Adjustments. In the event that a dividend shall be declared upon the Common Stock
payable in shares of Common Stock, the number of Restricted Stock Units shall be adjusted by adding
to the award a number of Restricted Stock Units equal to the number of shares which would have been
distributable thereon if the Restricted Stock Units had been outstanding shares of Common Stock on
the date fixed for determining the stockholders entitled to receive such stock dividend. In the
event that the outstanding shares of Common Stock shall be changed into or exchanged for a
different number or kind of shares of stock or other securities of the Company or of another
corporation, or changed into or exchanged for cash or property or the right to receive cash or
property (but not including any dividend payable in cash or property other than a liquidating
distribution), whether through reorganization, recapitalization, stock split-up, combination of
shares, merger or consolidation, then each Restricted Stock Unit shall be adjusted to become a
right to receive the number and kind of shares of stock or other securities or cash or property or
right to receive cash or property into which each outstanding share of Common Stock shall be so
changed or for which each such share shall be exchanged. In the event there shall be any change
other than as specified above in this Section 6, in the number or kind of outstanding shares of
Common Stock or of any stock or other securities into which such Common Stock shall have been
changed or for which it shall have been exchanged, then if the Compensation Committee shall in its
reasonable discretion determine that such change equitably requires an adjustment in the Restricted
Stock Units, such adjustment shall be made by the Compensation Committee in a manner consistent
with adjustments made by the Compensation Committee under the Lance, Inc. 2003 Key Employee Stock
Plan with respect to such transaction.

     7. Assignment of This Agreement or Benefits Hereunder.

          (a) Successors. The Company will require any successor (whether via a Change in
Control, direct or indirect, by purchase, merger, consolidation, or otherwise) of the Company to
expressly assume and agree to perform the obligations under this Agreement in the same manner and to the same extent that the Company would be required to perform
it if no such succession had taken place.

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          (b) Assignment by Executive. This Agreement shall inure to the benefit of and be
enforceable by Executive’s personal or legal representatives, executors, administrators,
successors, heirs, distributees, devisees, and legatees. If Executive should die while any amount
is still payable to Executive hereunder had the Executive continued to live, all such amounts,
unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to
Executive’s estate. Executive’s rights hereunder shall not otherwise be assignable. In that
regard, no part of any amounts granted or payable hereunder shall, prior to actual payment, (i) be
subject to seizure, attachment, garnishment or sequestration for the payment of debts, judgments,
alimony or separate maintenance owed by Executive or any other person, (ii) be transferable by
operation of law in the event of Executive’s or any person’s bankruptcy or insolvency or (iii) be
transferable to a spouse as a result of a property settlement or otherwise.

     8. Notices. Any notice required to be delivered to the Company by Executive hereunder
shall be properly delivered to the Company when personally delivered to (including by a reputable
overnight courier), or actually received through the U.S. mail, postage prepaid, by:

	 	 	 
	

	 	Lance, Inc.
	

	 	P. O. Box 32368
	

	 	8600 South Boulevard
	

	 	Charlotte, NC 28232
	 
	 	 
	

	 	Attn: Vice President — Finance

     Any notice required to be delivered to Executive by the Company hereunder shall be properly
delivered to Executive when personally delivered to (including by a reputable overnight courier),
or actually received through the U.S. mail, postage prepaid, by, Executive at his last known
address as reflected on the books and records of the Company.

     9. Contractual Rights to Benefits. This Agreement establishes in Executive a right to
the benefits to which Executive is entitled hereunder. However, except as expressly stated herein,
nothing herein contained shall require or be deemed to require, or prohibit or be deemed to
prohibit, the Company to segregate, earmark or otherwise set aside any funds or other assets, in
trust or otherwise, to provide for any payments to be made or required hereunder. This Agreement
is intended to be an unfunded general asset promise for a select, highly compensated member of the
Company’s management and, therefore, is intended to be exempt from the substantive provisions of
the Employee Retirement Income Security Act of 1974, as amended.

     10. Entire Agreement. This Agreement represents the entire agreement between the
parties with respect to the subject matter hereof, and supersedes all prior
discussions, negotiations, and agreements concerning the subject matter hereof. This Agreement may
only be amended by a written instrument signed by both parties.

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     11. Tax Matters.

          (a) Executive’s Responsibility for Taxes. Regardless of any action the Company takes
with respect to any or all income tax, payroll tax or other tax-related withholding (“Tax-Related
Items”), Executive acknowledges that the ultimate liability for all Tax-Related Items owed by
Executive is and remains Executive’s responsibility and that the Company (i) makes no
representations or undertakings regarding the treatment of any Tax-Related Items in connection with
any aspect of the grant of Restricted Stock Units, including the grant and vesting the Restricted
Stock Units, the subsequent sale of shares of Common Stock acquired upon the vesting of the
Restricted Stock Units and the receipt of any dividends; and (ii) does not commit to structure the
terms of the grant or any aspect of the Restricted Stock Units to reduce or eliminate Executive’s
liability for Tax-Related Items.

          (b) Tax Withholding. In the event the Company reasonably determines that it must
withhold any Tax-Related Items as a result of the award hereunder, Executive agrees as a condition
of the grant of the Restricted Stock Units to make arrangements reasonably satisfactory to the
Company to enable it to satisfy all withholding requirements, including, but not limited to,
withholding any applicable Tax-Related Items from the payment of the Restricted Stock Units. If
Executive does not make such arrangements, Executive authorizes the Company to fulfill its
withholding obligations by all legal means, including, but not limited to: withholding Tax-Related
Items from Executive’s wages, salary or other cash compensation; withholding Tax-Related Items from
the cash proceeds, if any, received upon sale of any shares received in payment for the Restricted
Stock Units; and at the time of payment, withholding shares of Common Stock sufficient to meet
minimum withholding obligations for Tax-Related Items. The Company may refuse to issue and deliver
shares of Common Stock in payment of any vested Restricted Stock Units if Executive fails to comply
with his withholding obligations hereunder.

          (c) Compliance With Section 409A. To the extent applicable, this Agreement is
intended to comply with the requirements of Section 409A. Notwithstanding any provision of this
Agreement to the contrary, this Agreement shall be interpreted, operated and administered
consistent with this intent.

     12. Severability. In the event any provision of this Agreement shall be held illegal
or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of
this Agreement, and this Agreement shall be construed and enforced as if the illegal or invalid
provision had not been included.

     13. Applicable Law. To the extent not preempted by the laws of the United States, the
laws of the State of North Carolina shall be the controlling law in all matters relating to this
Agreement. Each party (i) consents to the personal jurisdiction of any state or federal court
located in Charlotte, North Carolina (and any corresponding appellate court) in any proceeding arising out of or relating to this Agreement or the Executive’s
employment by the Company, (ii) waives any venue or inconvenient forum defense to any proceeding
maintained in such courts and (iii) except as otherwise

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provided in this Agreement, agrees not to bring any proceeding arising out of or relating to this Agreement or the Executive’s employment by
the Company in any other court.

     14. Execution. This Agreement is hereby executed in duplicate originals, one of which
is being retained by each of the parties hereto.

     IN WITNESS WHEREOF, Lance, Inc. has caused this Agreement to be signed by its duly authorized
officer, and Executive has hereunto set his hand, all as of the day and year first above written.

	 	 	 	 	 	 	 
	 	 	“Company”	 	 
	 
	 	 	 	 	 	 
	 	 	Lance, Inc.	 	 
	 
	 	 	 	 	 	 
	

	 	By
	 	/s/ Earl D. Leake	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Earl D. Leake	 	 
	

	 	 	 	Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	“Executive”	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ David V. Singer	 	 
	 	 	 	 	 
	 	 	David V. Singer	 	 

9Equity Purchase Agreement

 

Exhibit 10.1

EQUITY PURCHASE AGREEMENT

BY AND AMONG

COMUNICACIONES NEXTEL DE MEXICO, S.A. DE C.V.

AND

SERVICIOS NII, S.A. DE C.V.

AND

AMERICA ONLINE LATIN AMERICA, INC.

AND

LATIN AMERICA QUOTAHOLDER, LLC

AND

AOL MEXICO, S. DE R.L. DE C.V.

Dated as of April 25, 2005

 

 

EQUITY PURCHASE AGREEMENT

     This
EQUITY PURCHASE AGREEMENT, dated as of April 25, 2005, is entered into by and among
AMERICA ONLINE LATIN AMERICA, INC. (“AOLA”), a Delaware corporation and LATIN AMERICA QUOTAHOLDER,
LLC (“AOLA Quotaholder”), a Delaware limited liability company (each, a “Seller” and collectively,
the “Sellers”); AOL MEXICO, S. DE R.L. DE C.V. (the “Company”), a sociedad de responsabilidad
limitada de capital variable organized and existing under the laws of Mexico; COMUNICACIONES NEXTEL
DE MéXICO, S.A. DE C.V. (“Comunicaciones Nextel”), a sociedad anónima de capital variable organized
and existing under the laws of Mexico; and SERVICIOS NII, S.A. DE C.V. (“Servicios”), a sociedad
anónima de capital variable organized and existing under the laws of Mexico (each, a “Purchaser”
and collectively, the “Purchasers”). Capitalized terms used and not otherwise defined herein have
the meanings set forth in Article 10.

RECITALS

     A. The Sellers own all of the outstanding equity interests of the Company.

     B. The Purchasers desire to purchase and acquire from each Seller, and each Seller desires to
sell and transfer to the Purchasers, the Company Equity Interests (as defined in Section 2.3(a))
owned by such Seller at the Closing (as defined in Section 1.2), which in the aggregate will
constitute all of the outstanding Company Equity Interests at such time, for the consideration, and
upon the terms and subject to the conditions set forth in this Agreement and the related documents
to be executed and delivered in connection herewith (the “Acquisition”).

     C. The Company, the Sellers and the Purchasers desire to make certain representations,
warranties, covenants and agreements in connection with the Acquisition.

     NOW, THEREFORE, in consideration of the covenants, representations and warranties set forth
herein, intending to be legally bound hereby, the parties agree as follows:

ARTICLE 1

THE ACQUISITION

     1.1 The Acquisition. Upon the terms and subject to the conditions set forth in this
Agreement and upon the representations and warranties made herein by each of the parties to the
other, on the Closing Date, the Purchasers shall purchase and acquire from the Sellers, and the
Sellers shall sell and transfer to the Purchasers, all of the Company Equity Interests outstanding
immediately prior to the Closing as set forth in Section 1.1 of the disclosure schedule of the
Company dated the date hereof and delivered herewith (the “Company Disclosure Schedule”) in
exchange for the Acquisition Consideration (as defined in Section 1.3). The Company Equity Interest
owned by AOLA shall be sold and transferred to Comunicaciones Nextel, and the Company Equity
Interest owned by AOL Quotaholder shall be sold and transferred to Servicios.

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Immediately following the Closing, the Purchasers shall own all of the outstanding Company
Equity Interests.

     1.2 Closing. The closing of the Acquisition (the “Closing”), shall take place on
April 25, 2005; provided, however, that in the event the satisfaction or waiver of conditions set
forth in Section 6.2 or Section 6.3 shall have not occurred by such date, the Closing shall take
place on the first business day thereafter following satisfaction or waiver of such conditions (the
date of Closing, the “Closing Date”). The Closing shall take place at the offices of
Comunicaciones Nextel de Mexico S.A. de C.V., Blvd. Manuel Avila Camacho No. 36 Piso 9, Colonia
Lomas de Chapultepec, C.P. 11000, Mexico, D.F., unless another place or time is agreed to by the
Purchasers and the Sellers.

     1.3 Acquisition Consideration. Upon the terms and subject to the conditions set forth
in this Agreement and upon the representations, warranties, covenants and agreements of the Company
and the Sellers contained herein, and in exchange for all of the Company Equity Interests
outstanding immediately prior to the Closing, the Purchasers shall at the Closing pay to the
Sellers, by wire transfer of immediately available funds to an account or accounts specified by the
Sellers to the Purchasers prior to the Closing, the amount (the “Acquisition Consideration”) of ONE
HUNDRED FIFTY FIVE MILLION EIGHT HUNDRED EIGHTEEN THOUSAND THREE HUNDRED FIFTY MEXICAN PESOS
(Mxp$155’818,350.00), free and clear of any withholding or other retention whatsoever, payable to
each Seller in the amount specified in Section 1.3 of the Company Disclosure Schedule.

ARTICLE 2

REPRESENTATIONS AND WARRANTIES

OF THE COMPANY AND SELLERS

     The Company and each Seller hereby jointly and severally represent and warrant to the
Purchasers as follows:

     2.1 Organization and Qualification. The Company is a sociedad de responsabilidad
limitada de capital variable (limited liability company with a variable legal capital) duly
organized and validly existing under the Laws of Mexico, and has full power and authority to
conduct its business as now conducted and to own, use, license and lease its Assets. The Company
is not required to be, and is not, qualified, licensed or admitted to do business in any
jurisdiction other than Mexico.

     2.2 Authority Relative to this Agreement. The Company has full power and authority to
execute and deliver this Agreement, to perform its obligations hereunder and to consummate the
transactions contemplated hereby. The execution and delivery by the Company of this Agreement and
the consummation by the Company of the transactions contemplated hereby, and the performance by the
Company of its obligations hereunder, have been duly and validly authorized by all necessary action
of the partners of the Company, and no other action on the part of the board of managers or the
partners of the Company is required to authorize the execution,

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delivery and performance of this Agreement and the consummation by the Company of the
transactions contemplated hereby. This Agreement has been duly and validly executed and delivered
by the Company and constitutes a legal, valid and binding obligation of the Company enforceable
against the Company in accordance with its terms, except as the enforceability thereof may be
limited by bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other
similar Laws relating to the enforcement of creditors’ rights generally and by general principles
of equity.

     2.3 Equity Interests.

          (a) As of the Closing, the equity of the Company will consist of two (2) equity interests with
a total value of Mxp$1’583,249,234.00 (the “Company Equity Interests”), all of which are
outstanding. The outstanding Company Equity Interests are fully paid, have been recorded in
compliance with all applicable Laws, and are owned beneficially and of record by the Sellers. The
Equity Interests are not assessable by the Company or any creditor of the Company.

          (b) Section 2.3(b) of the Company Disclosure Schedule lists the name and address of each
Seller, and the total value of outstanding Company Equity Interests owned of record and/or
beneficially by each such Seller as of the execution of this Agreement.

          (c) No Company Equity Interest has been acquired subject to a repurchase option or buy-back
agreement on the part of the Company.

          (d) There are no outstanding Equity Equivalents or agreements, arrangements or understandings
to which the Company is a party (written or oral) to issue any Company Options. There is no equity
plan of the Company pursuant to which Company Options have been issued or are available for
issuance.

          (e) Other than each Seller’s rights under the Company’s organizational documents and except
for rights provided by Law, which rights will be waived at or prior to the Closing, there are no
preemptive rights or agreements, arrangements or understandings to issue preemptive rights with
respect to the issuance or sale of Company Equity Interests created by statute, the certificate of
incorporation or bylaws (estatutos sociales) (or similar organizational documents) of the Company,
or any agreement or other arrangement to which the Company is a party (written or oral) or to which
it is bound and there are no agreements, arrangements or understandings to which the Company is a
party (written or oral) pursuant to which the Company has the right to elect to satisfy any
Liability by issuing Company Equity Interests or Equity Equivalents.

          (f) The Company is not a party or subject to any agreement or understanding, and there is no
agreement, arrangement or understanding between or among any Persons which affects, restricts or
relates to voting, giving of written consents, dividend rights or transferability with respect to
the Company Equity Interests, including any voting trust agreement or proxy other than any relating
to the Sellers’ directors, stockholders or debt holders. No debt securities of the Company are
outstanding as of the date hereof.

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     2.4 Subsidiaries. The Company does not (and prior to the Closing will not) hold any
equity, membership, partnership, joint venture or other ownership interest in any Person.

     2.5 Managers and Officers. The name of each member of the Board of Managers and the
office or offices with the Company held by each such member, in each case as of the date hereof,
are listed on Section 2.5 of the Company Disclosure Schedule.

     2.6 No Conflicts. The execution and delivery by the Company of this Agreement does
not, and the performance by the Company of its obligations under this Agreement and the
consummation of the transactions contemplated hereby do not and will not:

          (a) conflict with or result in a violation or breach of any of the terms, conditions or
provisions of the certificate of incorporation or bylaws (estatutos sociales) (or similar
organizational documents) of the Company;

          (b) conflict with or result in a violation or breach of any Law or Order applicable to the
Company or any of the Acquired Assets, except where such violation or breach would not have a
Material Adverse Effect on the Company; or

          (c) require the Company to obtain any consent, approval or action of, make any filing with or
give any notice to any Person (except for such consents, approvals, orders, authorizations,
registrations, declarations and filings as may be required under applicable Mexican state or
federal securities laws).

     2.7 Company Financial Statements. Section 2.7 of the Company Disclosure Schedule sets
forth (i) the audited consolidated balance sheets of the Company as of December 31, 2003, 2002,
2001 and 2000; (ii) the related audited consolidated statements of operations and statements of
cash flows for such fiscal years ended December 31, 2003, 2002 and 2001, and for the period from
inception to December 31, 2000; (iii) the unaudited consolidated balance sheet of the Company as of
December 31, 2004; and (iv) the related unaudited consolidated statement of operations and
statement of cash flows for the fiscal year ended December 31, 2004 (collectively, the “Company
Financials”). All of the Company Financials (i) have been prepared in accordance with GAAP,
applied on a consistent basis, (ii) are complete, (iii) are in accordance with the Books and
Records of the Company and (iv) present fairly, in all material respects, the financial condition
and operating results of the Company as of the dates and for the periods indicated therein.

     2.8 Partners Registry, Minute Books and Capital Variations Books; Organizational
Documents. Copies of or access to the partners registry, minute books and capital variations
books of the Company, including evidence of the creation of the Company Equity Interests, (a) have
been provided to the Purchasers or their counsel prior to the execution of this Agreement, and (b)
are complete and correct in all material respects. Such minute books contain a true and complete
record of all meetings and all written consents in lieu of meetings that should be recorded in the
corresponding minute books of the Company pursuant to applicable Laws and the

4

 

Company’s organizational documents, including all meetings and written consents of the
managers, partners or members and committees of the board of managers of the Company, as the case
may be, from the applicable date of the incorporation until the date hereof. The Company has,
prior to the execution of this Agreement, made available to the Purchasers or their counsel true
and complete copies of the certificate of incorporation and bylaws (estatutos sociales) (or similar
organizational documents) of the Company each as amended through the date hereof. The Company is
not in violation of any provisions of its certificate of incorporation or bylaws (estatutos
sociales) (or similar organizational documents).

     2.9 Absence of Changes. Since December 31, 2004 (the “Company Financials Date”),
there has not been any occurrence or event which, individually or in the aggregate, has had or is
reasonably expected to have any Material Adverse Effect on the Company.

     2.10 No Undisclosed Liabilities. Except (i) as reflected or reserved against in the
Company Financials (including, without limitation, the notes thereto), or (ii) as disclosed in
Section 2.10 of the Company Disclosure Schedule, there are no Liabilities of the Company affecting
any of the Acquired Assets (other than Liabilities incurred in the ordinary course of business
consistent with past practice since the Company Financials Date which are not the result of willful
misconduct (dolo) or breach of contract).

     2.11 Taxes.

          (a) The Company has filed all Tax Returns required to be filed through the date hereof. All
such Tax Returns were true, correct and complete in all respects. All Taxes owed by the Company
(whether or not shown on any Tax Return) have been paid except for Taxes not yet due. The Company
is not currently the beneficiary of any extension of time within which to file any Tax Return. No
claim has ever been made in writing by any Governmental or Regulatory Authority in any jurisdiction
where the Company does not file Tax Returns that the Company is or may be subject to taxation by
that jurisdiction. There are no security interests on any of the Assets of the Company that arose
in connection with any failure (or alleged failure) to pay any Tax.

          (b) There is no dispute or claim concerning any Tax Liability of the Company either (i)
claimed or raised by any Governmental or Regulatory Authority in writing or (ii) as to which the
Company has knowledge based upon contact with any agent of any such Governmental or Regulatory
Authority. The Company has made available to the Purchasers true, correct and complete copies of
all Mexican federal income Tax Returns filed, formal Tax opinions and examination reports received,
and statements of deficiencies assessed against or agreed to, by or on behalf of the Company since
inception.

          (c) The Company has never waived any statute of limitations in respect of Taxes or agreed to
any extension of time with respect to a Tax assessment or deficiency, other than an extension of
time resulting from the filing of a supplementary tax return.

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          (d) The Company is not a party to or bound by (nor will it prior to the Closing become a party
to or be bound by) any Tax indemnity, Tax allocation, Tax sharing or gain recognition agreement
(whether written, unwritten or arising under operation of any applicable Law as a result of being a
member of a group filing consolidated Tax Returns or other unitary group (other than a group the
common parent of which was the Company or a Seller), or under comparable Laws of other states or
foreign jurisdictions).

          (e) The Company does not have any Liability for the Taxes of any Person, other than the
Company, and other than as a result of being a member of a group filing consolidated Tax Returns or
other unitary group the common parent of which is AOLA. All moneys required to be withheld by the
Company from its employees for income Taxes and other payroll Taxes have been collected or
withheld, and either paid to the respective Governmental or Regulatory Authorities, set aside in
accounts for such purpose, or accrued, reserved against and entered upon the books of the Company.
The charges, accruals and reserves with respect to Taxes on the books of the Company are adequate
or are at least equal to the Tax liability of the Company.

          (f) As of the date hereof the Company has, and as of the Closing Date the Company will have,
Tax Credits in an amount not less than Mxp$1,700’000,000, based on current Tax rates and current
Tax law. Documentation evidencing such Tax Credits as of the date hereof (including evidence of
any arrangements between the Company and any Seller or any Affiliate of any Seller that resulted in
payments or transfers giving rise to any Tax Credits) has been delivered or made available to the
Purchasers. As of the date hereof, there are no Actions or Proceedings pending or, to the
knowledge of the Sellers and/or the Company, threatened against or affecting the Company with
respect to the determination of such Tax Credits. Neither the Company nor any Seller has, at any
time prior to the Closing Date, entered into any corporate reorganization, corporate restructuring
or any other transaction with the primary purpose of improving or increasing the Company’s Tax
Credits. Neither the Company nor any Seller has entered into any agreements, understandings or
arrangements with any Person that would result in or give to such Person any right of termination,
cancellation, acceleration or modification in or with respect to, or result in the loss of any
material benefit under or with respect to, any of the Tax Credits. Notwithstanding the
representation in this Section 2.11(f), neither the Company nor the Sellers make any representation
or warranty to the Purchasers regarding the ability of the Company or any Purchaser to utilize, or
the circumstances under which the Company or any Purchaser will be able to utilize, the Tax
Credits.

     2.12 Legal Proceedings. Section 2.12 of the Company Disclosure Schedule sets forth
all Actions or Proceedings against or affecting, or, to the knowledge of the Company, threatened
against, the Company or any of its Assets as of the date hereof, except those which individually or
in the aggregate are not material. As of the Closing, the Company will not have any Liability for
Actions or Proceedings previously settled by the Company. Except as set forth in Section 2.12 of
the Company Disclosure Schedule, as of the date of this Agreement:

          (a) there are no Actions or Proceedings pending or, to the knowledge of the Company,
threatened against or adversely affecting the Company or any of the Acquired Assets;

6

 

          (b) there are no facts or circumstances known to the Company that could reasonably be expected
to give rise to any Action or Proceeding against or adversely affecting the Company or any of its
Assets;

          (c) the Company has not received notice, and does not otherwise have knowledge of, any Orders
outstanding against the Company; and

          (d) to the knowledge of the Sellers and the Company, no event has occurred or circumstance
exists that may give rise to or serve as a basis for the commencement of any Action or Proceeding
against the Company.

     2.13 Compliance with Laws and Orders. The Company is not currently in default or
violation in any material respect under any Law or Order applicable to the Company or any of its
Assets.

     2.14 Reserved.

     2.15 Real Property. The Company does not own, lease, utilize or operate any real
property.

     2.16 Company Assets. The Company owns only the Assets described on Section 2.16 of
the Company Disclosure Schedule (the “Acquired Assets”). All such Acquired Assets (including
equipment) are free and clear of all Liens. The Sellers make no representation or warranty with
respect to the condition or suitability of the Acquired Assets. The Purchasers accept the Acquired
Assets in an “as is, where is” condition.

     2.17 Contracts. The Company is not a party to any Contract (including any collective
bargaining or comparable agreement) other than the Contracts listed on Section 2.17 of the Company
Disclosure Schedule.

     2.18 Customer Information. The Acquired Assets will include, to the extent in the
Company’s records, the names, billing addresses, e-mail addresses, tenure of membership and
standing of all of the Company’s customers as of January 31, 2005 (the “Customer Information”). To
the knowledge of the Company, such information will be correct and complete in all material
respects as of January 31, 2005. The Purchasers acknowledge that the Company does not own the
Customer Information. After the Closing, the Company and the Purchasers will have only the limited
rights to use the Customer Information as described in Section 5.13.

     2.19 Accounts Receivable. The Acquired Assets will include the accounts receivable of
the Company that were ten months or more past due as of January 31, 2005 as contained on the
compact disc delivered herewith at the Closing (the “Accounts Receivable”). To the Company’s
knowledge, such accounts receivable have arisen from bona fide sales transactions

7

 

and are not subject to any valid set-off or counterclaim. The Sellers make no representation
or warranty as to collectability of any of such accounts receivable.

     2.20 Other Negotiations; Brokers; Third-Party Expenses. Neither the Company nor any
investment banker, financial advisor, attorney, accountant or other Person retained by or acting
for or on behalf of the Company (a) has entered into any Contract that conflicts with any of the
transactions contemplated by this Agreement or (b) has entered into any Contract or arrangement
with any Person regarding any transaction involving the Company which is likely to result in the
Purchasers, the Company, or any general partner, limited partner, manager, officer, director,
employee, agent or Affiliate of any of them being subject to any claim for liability to said Person
as a result of entering into this Agreement or consummating the transactions contemplated hereby.
No broker, investment banker, financial advisor or other Person is or will be entitled to any
broker’s, finder’s, financial advisor’s or similar fee or commission in connection with this
Agreement and the transactions contemplated hereby based on arrangements made by or on behalf of
the Company.

     2.21 Banks and Brokerage Accounts. If the Company possesses any bank or brokerage
accounts as of the Closing, the Sellers will provide the Purchasers at the Closing with (a) a true
and complete list of the names and locations of each related bank, trust company, securities broker
and other financial institution at which such account is maintained, (b) a true and complete list
and description of each such account, indicating in each case the account number and the names of
the respective officers, employees, agents or other similar representatives of the Company having
signatory power with respect thereto and (c) a list of each related Investment Asset, the name of
the record and beneficial owner thereof, the location of the certificates, if any, therefor, and
any stock or bond powers or other authority for transfer granted with respect thereto.

     2.22 Corrupt Practices. Neither the Company, nor any agent, employee or other Person
acting on behalf of the Company, has, directly or indirectly, used any corporate funds for unlawful
contributions, gifts, entertainment or other unlawful expenses relating to political activity, made
any unlawful payment to foreign or domestic government officials or employees or to foreign or
domestic political parties or campaigns from corporate funds, violated any provision of any
applicable Law regarding corrupt practices, as amended, or made any bribe, rebate, payoff,
influence payment, kickback or other similar unlawful payment.

     2.23 Approvals.

          (a) There are no material Approvals of Governmental or Regulatory Authorities known to the
Company relating to the business conducted by the Company which are required to be given to or
obtained by the Company from any and all Governmental or Regulatory Authorities in connection with
the consummation of the transactions contemplated by this Agreement.

          (b) Section 2.23(b) of the Company Disclosure Schedule contains a list of all material
Approvals which are required to be given to or obtained by the Company from any and

8

 

all Persons other than Governmental or Regulatory Authorities in connection with the
consummation of the transactions contemplated by this Agreement.

          (c) Except as set forth in Section 2.23(c) of the Company Disclosure Schedule, the Company has
obtained all Approvals from Governmental or Regulatory Authorities necessary to own the Acquired
Assets prior to Closing. All material Approvals from Governmental or Regulatory Authorities
necessary to own the Acquired Assets prior to the Closing are set forth in Section 2.23(c) of the
Company Disclosure Schedule.

          (d) No event has occurred or circumstance exists which (with or without notice or lapse of
time) (i) may reasonably be expected to constitute or result in a violation by the Company of, or a
failure on the part of the Company to comply with, any Approval, or (ii) may reasonably be expected
to give rise to any obligation on the part of the Company to undertake, or to bear all or any
portion of the cost of, any remedial action of any nature.

          (e) The Company has not received any notice or other communication (whether oral or written)
from any Governmental or Regulatory Authority or any other Person regarding (i) any actual,
alleged, possible, or potential violation of, or failure to comply with, any material Approval, or
(ii) any actual, alleged, possible, or potential material obligation on the part of the Company to
undertake, or to bear all or any portion of the cost of, any remedial action of any nature. The
Company has not been notified of any cancellation of the terms and requirements of any material
Approval.

     2.24 Employees. The Company does not have any employees and is not a party to any
collective bargaining agreement or other labor agreements. The Company does not owe any current,
future or contingent amounts to any former employee by reason of the labor relationship or its
termination by any reason whatsoever, except as otherwise provided under applicable labor law in
Mexico. The Company does not have any Plans or any current, future or contingent Liabilities to
any Person arising out of any Plan.

ARTICLE 2A

REPRESENTATIONS AND WARRANTIES OF THE SELLERS

     Each Seller hereby represents and warrants to the Purchasers as follows:

     2A.1 Ownership of Company Equity Interests. Such Seller owns of record and
beneficially one outstanding Company Equity Interest set forth opposite its name on Sections 1.1
and 2.3(b) of the Company Disclosure Schedule. Such Equity Interest is, and when transferred by
such Seller to the Purchasers pursuant to this Agreement will be, duly authorized, fully paid, and
free and clear of any and all Liens.

     2A.2 Authority Relative to this Agreement. Such Seller has full power and authority
to execute and deliver this Agreement, to perform its obligations hereunder and to consummate the
transactions contemplated hereby. This Agreement has been duly and validly authorized, executed
and delivered by such Seller and, assuming the due authorization, execution and

9

 

delivery hereof by, and enforceability against, the Purchasers, constitutes a legal, valid and
binding obligation of such Seller enforceable against such Seller in accordance with its terms,
except as the enforceability thereof may be limited by bankruptcy, insolvency, fraudulent
conveyance, reorganization, moratorium or other similar Laws relating to the enforcement of
creditors’ rights generally and by general principles of equity. No Approvals are required to be
obtained by such Seller from any Governmental or Regulatory Authorities or any other Person in
connection with the consummation of the transactions contemplated by this Agreement other than any
that have been obtained by the Sellers or the Company prior to their consummation.

     2A.3 No Conflicts. The execution and delivery by such Seller of this Agreement does
not, and the performance by such Seller of its obligations under this Agreement and the
consummation of the transactions contemplated hereby do not:

          (a) conflict with or result in a violation or breach of any Law or Order applicable to such
Seller; or

          (b) (i) conflict with or result in a violation or breach of, (ii) constitute a default (or an
event that, with or without notice or lapse of time or both, would constitute a default) under,
(iii) require such Seller to obtain any consent, approval or action of, make any filing with or
give any notice to any Person as a result or under the terms of, (iv) result in or give to any
Person any right of termination, cancellation, acceleration or modification in or with respect to,
(v) result in or give to any Person any additional rights or entitlement to increased, additional,
accelerated or guaranteed payments or performance under, (vi) result in the creation or imposition
of (or the obligation to create or impose) any Lien upon any of such Seller’s Assets under or (vii)
result in the loss of any material benefit under, any of the terms, conditions or provisions of any
material Contract to which such Seller is a party or by which any of such Seller’s Assets is bound.

     2A.4 Finder’s Fee. Such Seller has not incurred or become liable for, nor will incur
or become liable for, any broker’s commission or finder’s fee relating to or in connection with the
transactions contemplated by this Agreement.

     2A.5 Agreements. There are no agreements or arrangements not contained herein or
disclosed in the Company Disclosure Schedule, to which such Seller is a party relating to the
business of the Company or to such Seller’s rights and obligations as an equity holder of the
Company other than the organizational documents relating to the Company or the Sellers, agreements
among the Sellers and their respective shareholders and “regional” agreements to which a Seller is
a party relating to the business of the Company and other Seller Affiliates.

     2A.6 No Fraudulent Conveyance. To the best of each Seller’s knowledge after due
inquiry, the Acquisition Consideration to be received by each Seller in exchange for its Company
Equity Interest represents reasonably equivalent value for such Company Equity Interest being sold.
The Acquisition Consideration was determined through arm’s length negotiations between the
parties. The transfer of such Seller’s Company Equity Interest to the Purchasers will not
constitute a transfer of property in connection with any preexisting indebtedness owed by such

10

 

Seller to either of the Purchasers. Such Seller is not transferring its Company Equity Interest to
the Purchasers with the actual intent to hinder, delay or defraud any of its creditors. Such
Seller’s transfer of its Company Equity Interest to the Purchasers constitutes a practical and
reasonable course of action designed to improve the financial condition of such Seller without
impairing the rights of its creditors.

ARTICLE 3

REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS

     Each Purchaser represents and warrants to the Company and the Sellers, as follows:

     3.1 Organization and Qualification. Such Purchaser is duly organized and validly
existing under the Laws of Mexico. Such Purchaser has full corporate power and authority to conduct
its business as now conducted and as currently proposed to be conducted and to own, use and lease
its Assets. Such Purchaser is duly qualified, licensed or admitted to do business and is in good
standing in each jurisdiction in which the ownership, use, licensing or leasing of its Assets, or
the conduct or nature of its business, makes such qualification, licensing or admission necessary,
except for such failures to be so duly qualified, licensed or admitted and in good standing that
could not reasonably be expected to have a Material Adverse Effect on such Purchaser.

     3.2 Authority Relative to this Agreement. Such Purchaser has full corporate power and
authority to execute and deliver this Agreement, to perform its obligations hereunder and to
consummate the transactions contemplated hereby. The execution and delivery by such Purchaser of
this Agreement and the consummation by such Purchaser of the transactions contemplated hereby have
been duly and validly authorized by all necessary corporate action of such Purchaser, and no other
corporate action on the part of such Purchaser is required to authorize the execution, delivery and
performance of this Agreement and the consummation by such Purchaser of the transactions
contemplated hereby. This Agreement has been duly and validly executed and delivered by such
Purchaser and, assuming the due authorization, execution and delivery hereof by the Company and the
Sellers, constitutes a legal, valid and binding obligation of such Purchaser, enforceable against
such Purchaser in accordance with its terms, except as the enforceability thereof may be limited by
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other similar Laws
relating to the enforcement of creditors’ rights generally and by general principles of equity.

     3.3 No Conflicts. The execution and delivery by such Purchaser of this Agreement does
not, and the performance by such Purchaser of its obligations under this Agreement and the
consummation of the transactions contemplated hereby do not conflict with or result in a violation
or breach of any Law or Order applicable to such Purchaser, except where such violation or breach
would not have a Material Adverse Effect on such Purchaser.

     3.4 Brokers. No broker, investment banker, financial advisor or other Person is or
will be entitled to any broker’s, finder’s, financial advisor’s or similar fee or commission in

11

 

connection with this Agreement and the transactions contemplated hereby based on arrangements made
by or on behalf of any Purchaser.

     3.5 Approvals. There are no material Approvals of Governmental or Regulatory
Authorities known to the Purchasers which are required to be given to or obtained by the Purchaser
from any and all Governmental or Regulatory Authorities in connection with the consummation of the
transactions contemplated by this Agreement.

     3.6 Financial Condition of AOLA and its Subsidiaries. Sellers and the Company make no
representation or warranty as to the financial condition of AOLA and its Subsidiaries except as
provided in this Agreement, and such Purchaser acknowledges the disclosures concerning the
financial condition of AOLA and its Subsidiaries contained in AOLA’s Annual Report on Form 10-K for
the fiscal year ended December 31, 2004 filed with the Securities and Exchange Commission on March
31, 2005.

ARTICLE 4

CONDUCT PRIOR TO THE CLOSING

     4.1 Conduct of Business of the Company. During the period from the date hereof
through the Closing Date, the Sellers shall cause the Company to engage only in those activities
(a) that constitute operations in the ordinary course of business or (b) that are otherwise
permitted or contemplated by this Agreement. Neither the Company nor any Seller shall, without the
prior written consent of the Purchasers, take or agree in writing or otherwise to take, any action
that would prevent the Company or any Seller from performing, or cause the Company or any Seller
not to perform, its agreements and covenants hereunder or knowingly cause any condition to the
closing obligations of the Purchasers in Section 6.1 or Section 6.3 not to be satisfied.

ARTICLE 5

ADDITIONAL AGREEMENTS

     5.1 Access to Information. Between the date of this Agreement and the earlier of the
Closing or the termination of this Agreement, upon reasonable notice, the Company shall (i) give
the Purchasers and its officers, appropriate employees, accountants, and counsel full access, upon
reasonable prior notice during normal business hours, to all Books and Records of the Company,
whether located on the premises of the Company or at another location; and (ii) furnish the
Purchasers such financial data and other information with respect to the Acquired Assets as the
Purchasers from time to time may reasonably request, including financial statements and schedules;
provided, however, that no investigation made prior to the date of this Agreement or made pursuant
to this Section 5.1 shall affect or be deemed to modify any representation or warranty made by the
Company herein.

     5.2 Confidentiality. Each party (the “Receiving Party”) acknowledges that the
Confidential Information of the other party (the “Disclosing Party”) constitutes valuable assets

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and trade secrets of the Disclosing Party and its Affiliates, has not been published and is
protected by civil and criminal law, and that the use and disclosure thereof must be carefully and
continuously controlled. Accordingly, during the term of this Agreement and at all times
thereafter, Receiving Party, agrees that it will: (i) use the Confidential Information only for the
purpose(s) permitted under this Agreement; (ii) hold the Confidential Information in strict
confidence and will use commercially reasonable best efforts to protect the Confidential
Information and/or Proprietary Information from any use, reproduction, publication, disclosure, or
distribution except as specifically authorized by this Agreement; (iii) not sell, lease, assign,
transfer, distribute, license, disclose or otherwise make available any Confidential Information of
Disclosing Party to third parties, except as authorized by this Agreement; (iv) honor, reproduce
and include the copyright notice, trademark notice, and other proprietary notices (in the form
specified by the Disclosing Party) on all copies, in any form, including partial copies and
excerpts, of the Confidential Information. Notwithstanding the foregoing, the Receiving Party may
disclose Confidential Information pursuant to a requirement of a Governmental or Regulatory
Authority or in connection with judicial proceedings between the parties, provided,
however, that prior to any such disclosure, the Receiving Party shall have given to the
Disclosing Party prior notice of any proposed disclosure and a reasonable opportunity to interpose
an objection or obtain a protective order, unless such notice is forbidden by law. In addition,
each Seller may disclose the terms and conditions, and provide a copy, of this Agreement to
potential purchasers of the business of such Seller or one or more of its Subsidiaries provided
such potential purchasers have executed an agreement not to disclose the information provided
except as necessary to evaluate and consummate a purchase of the business of such Seller or one or
more of its Subsidiaries. Upon termination of this Agreement, the Receiving Party shall promptly
return to the Disclosing Party all Confidential Information of the Disclosing Party or shall
promptly deliver a certificate of the Receiving Party certifying that all such Confidential
Information has been destroyed. The Receiving Party’s obligations with respect to the Confidential
Information shall survive for three (3) years following the date of termination of this Agreement.

     5.3 Expenses. All fees and expenses incurred by the Company prior to the Closing and
all fees and expenses incurred by any of the Sellers in connection with the negotiation and
effectuation of the terms and conditions of this Agreement and the transactions contemplated
hereby, including all legal, accounting, financial advisory, consulting, success and all other fees
and expenses of third parties (the “Company Expenses”) shall be the joint and several obligation of
the Sellers (and not of the Company). All fees and expenses incurred by the Company after the
Closing, if not paid by the Company, and the Purchasers in connection with the negotiation and
effectuation of the terms and conditions of this Agreement and the transactions contemplated
hereby, including all legal, accounting, financial advisory, consulting and all other fees and
expenses of third parties, shall be the joint and several obligation of the Purchasers.

     5.4 Public Disclosure. Unless otherwise required by applicable Law, no party to this
Agreement shall issue any press release or announcement relating to the subject matter of this
Agreement without the prior written approval of the other parties hereto; provided, however, that
(i) the parties hereto may make any public disclosure they believe, in good faith, is required
under the rules and regulations of the Securities and Exchange Commission and Form 8-K

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promulgated pursuant thereto, and (ii) if the Closing occurs as provided herein on or prior to April 28, 2005,
the Purchasers shall be permitted to publicly announce the completion of the Acquisition and the
terms thereof in conjunction with the quarterly earnings announcement of NII Holdings, Inc. on or
about April 29, 2005.

     5.5 Notices and Approvals. The Company, the Sellers and the Purchasers will use all
reasonable efforts to obtain all Approvals from Governmental or Regulatory Authorities or in
connection with the termination of any of the Contracts or other agreements as may be required in
connection with the transactions contemplated hereby, and each party shall provide the other with
such assistance and information as is reasonably required to obtain such Approvals.

     5.6 Notification of Certain Matters. The Company, each Seller, or each Purchaser, as
applicable, shall give prompt notice to the other parties to this Agreement of (a) the occurrence
or non-occurrence of any event, the occurrence or non-occurrence of which is likely to cause any
representation or warranty of such notifying party contained in this Agreement to be untrue or
inaccurate in any material respect at or prior to the Closing and (b) any failure of such notifying
party to comply in any material respect with or satisfy any covenant, condition or agreement to be
complied with or satisfied by it hereunder; provided, however, that the delivery of any notice
pursuant to this Section 5.6 shall not limit or otherwise affect any remedies available to the
parties to this Agreement.

     5.7 Further Assurances; Cooperation. Each party hereto, at the request of the other
party hereto, shall execute and deliver such other instruments and do and perform such other acts
and things as may be necessary or desirable for effecting completely the consummation of this
Agreement and the transactions contemplated hereby. Each party agrees to use reasonable efforts to
cause the conditions set forth in Article 6 to be satisfied, where the satisfaction of such
conditions depends on action or forbearance from action by such party.

     5.8 Resignation of Managers and Officers. The Company and the Sellers shall obtain
and deliver to the Purchasers at the Closing the resignation of each board member and officer of
the Company listed in Section 2.5 of the Company Disclosure Schedule from their positions as
officers or members of the board of managers of the Company.

     5.9 Audited Financial Statements; Company’s Auditors. Between the date hereof and the
Closing, the Company shall cause its management and shall use all reasonable efforts to cause its
independent accountants to facilitate on a timely basis the review of any Company audit or review
work papers, including the examination of selected interim financial statements and data as may be
reasonably requested by the Purchasers.

     5.10 Delivery of Partners Registry, Minute Books and Capital Variations Books of the
Company. The Company shall deliver its partners registry, minute books and capital variations
books to the Purchasers at the Closing. The Company shall have the right to retain copies of its
partners registry, minute books and capital variations books.

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     5.11 Certain Tax Matters. The following provisions shall govern the allocation of
responsibility as between the Purchasers and the Sellers for certain tax matters following the
Closing:

          (a) Cooperation on Tax Matters.

               (i) The Purchasers, the Company and each Seller shall cooperate and make commercially
reasonable efforts, as and to the extent reasonably requested by the other party, in connection
with the filing of Tax Returns for all periods that begin before the Closing and any audit,
litigation or other Action or Proceeding with respect to Taxes. Such cooperation shall include the
retention and (upon the other party’s request) the provision of records and information which are
reasonably relevant to any such audit, litigation or other Action or Proceeding and making
employees available on a mutually convenient basis to provide additional information and
explanation of any material provided hereunder. Each Purchaser shall cause the Company to (A)
retain all Books and Records with respect to Tax matters pertinent to the Company relating to any
taxable period beginning before the Closing until the expiration of the statute of limitations
(and, to the extent notified by the Purchasers or any Seller, any extensions thereof) of the
respective taxable periods, and to abide by all record retention agreements entered into with any
taxing authority, and (B) give the Sellers reasonable written notice prior to transferring,
destroying or discarding any such Books and Records and, if the Sellers so request, the Company and
each of the Purchasers, as the case may be, shall allow the Sellers to take possession of such
Books and Records.

               (ii) For a period ending on the fifth anniversary of the Closing Date, the Purchasers and each
Seller shall, upon request, use commercially reasonable efforts to obtain any certificate or other
document from any Governmental or Regulatory Authority or any other Person as may be necessary to
mitigate, reduce or eliminate any Tax that could be imposed (including without limitation any Tax
with respect to the transactions contemplated hereby).

               (iii) The Purchasers and each Seller shall, upon request, provide the other party with all
information that either party may be required to report pursuant to applicable law.

          (b) Tax Period Ending on or before Closing. The Sellers shall prepare or cause to be
prepared, and file or cause to be filed, all income Tax Returns for the Company for all periods
ending on or prior to the Closing that are scheduled to be filed after the Closing. Upon Seller’s
reasonable request detailing the documentation needed, the Purchasers shall provide the Sellers
with access during normal business hours to the Company’s specific Books and Records to permit
Sellers to prepare such Tax Returns.

          (c) Certain Taxes. All transfer, documentary, sales, use, stamp, registration and
other such Taxes and fees (including any penalties and interest) incurred in connection with this
Agreement, shall be paid by the party legally responsible therefor when due, and such party will,
at its own expense, file all necessary Tax Returns and other documentation with respect to
all such transfer, documentary, sales, use, stamp, registration and other such Taxes and fees,
and,

15

 

if required by applicable Law, each of the Purchasers and the Company will, and will cause its
Affiliates to, join in the execution of any such Tax Returns and other documentation.

     5.12 Releases. At Closing, each of the Sellers covenants and agrees to deliver to the
Company, and shall cause each of the persons identified on Section 2.5 of the Company Disclosure
Schedule to deliver, a release (each a “Release”) in the form of Exhibit A hereto.

     5.13 Use of Customer Information. The Purchasers covenant and agree, for and on behalf
of themselves and the Company, that the Customer Information shall be used by the Purchasers and
their respective Affiliates exclusively to market, solicit and offer their integrated wireless
telecommunications services, including “Push to Talk” and Nextel Online services. Without limiting
the foregoing, the Purchasers and the Company (after the Closing) shall not use the Customer
Information, either alone or with third parties, in connection with the marketing or sale of any
one or more of the following: (i) online or Internet connectivity services (e.g., services
typically performed by an online or Internet service provider); or (ii) an interactive site or
service providing interactive content (or navigation thereto). The Purchasers and the Company
covenant and agree that they shall not disclose or transfer to any Person the Customer Information,
nor the source of the Customer Information, or otherwise refer to any of the Sellers or their
Affiliates in relation to the Customer Information.

     5.14 Company Name Change. If not completed prior to the Closing, within thirty (30)
days after the Closing, the Purchasers shall take all such action as may be necessary to cause the
name of the Company to be changed to “NEXTEL MEXICO, S. DE R.L. DE C.V.” or any other name
approved by the Mexican Ministry of Foreign Affairs (Secretaría de Relaciones Exteriores). Neither
such name nor any other names used by the Company or the Purchasers at any time after the Closing
shall include any proprietary trade names or legal names (or names similar thereto) of Time Warner
Inc. or its Subsidiaries. The Company shall provide the Sellers with evidence of such name change
as soon as practicable following the effectiveness thereof. From and after the effective date of
such name change, the Purchasers shall take all such action as may be reasonably necessary,
appropriate or advisable to ensure that the Company is identified only by its new name.

     5.15 Remittance of Payments. The Purchasers and the Company (after the Closing) shall
be jointly and severally obligated to promptly pay to the Sellers any amounts received by the
Company or the Purchasers or any of their respective Affiliates after the Closing for any services
provided by the Company prior to the Closing, except for any amounts received by the Company or the
Purchasers under the Accounts Receivable.

     5.16 Remaining Litigation. The parties agree that the parties’ rights, liabilities
and obligations pertaining to the Remaining Litigation shall be governed by the Agency Agreement
attached hereto as Exhibit B (the “Agency Agreement”). Pursuant to the Agency Agreement, all
amounts, if any, received by the Company or the Purchasers or any of their respective Affiliates in
respect of the Remaining Litigation (including the tax appeals listed in Section 5.16 of the
Company Disclosure Schedule) shall be held in trust by the Company for the benefit of the
Sellers and, subject in all respects to Section 7.6, promptly remitted to the Sellers pursuant
to the

16

 

written instructions of the Sellers to that effect. Any payment remitted to the Sellers
pursuant to this Section 5.16 shall be treated by the parties as an adjustment to the Acquisition
Consideration for all Tax purposes. At the Closing, the Company shall enter into the Agency
Agreement and a related Power of Attorney with the Sellers pursuant to which the Company shall
irrevocably appoint the Sellers or the Sellers’ designee as its representative to appear before any
Governmental or Regulatory Authorities or third parties and effect any and all actions that may be
deemed required, at the Sellers’ sole discretion, with respect to the Remaining Litigation.
Notwithstanding anything to the contrary in this Agreement or in the Agency Agreement, the Sellers
shall be jointly and severally liable for any and all Losses arising out of, in connection with or
in any way related to the Remaining Litigation.

     5.17 Post-Closing Access to the Sellers. After the Closing and upon the Sellers’
reasonable request, the Purchasers and the Company shall provide the Sellers reasonable access to
the Books and Records of the Company during business hours and will provide the Sellers with thirty
days reasonable advance notice before destroying any such Books and Records.

ARTICLE 6

CONDITIONS TO CLOSING

     6.1 Conditions to Obligations of Each Party to Effect the Acquisition. The respective
obligations of each party to this Agreement to effect the Acquisition shall be subject to the
satisfaction at or prior to the Closing of the following conditions:

          (a) Governmental and Regulatory Approvals. The Approvals from any Governmental or
Regulatory Authority listed in Section 2.23(b) of the Company Disclosure Schedule necessary for
consummation of the transactions contemplated hereby shall have been obtained.

          (b) No Injunctions or Regulatory Restraints; Illegality. No temporary restraining
order, preliminary or permanent injunction or other Order issued by any court of competent
jurisdiction or Governmental or Regulatory Authority or other legal or regulatory restraint or
prohibition preventing the consummation of the Acquisition shall be in effect.

     6.2 Additional Conditions to Obligations of the Sellers. The obligations of the
Sellers to consummate the Acquisition and the other transactions contemplated by this Agreement
shall be subject to the satisfaction at or prior to the Closing of each of the following
conditions, any of which may be waived, in writing, exclusively by such Seller:

          (a) Representations and Warranties. The representations and warranties of the
Purchasers contained in this Agreement shall be accurate in all respects as of the date of this
Agreement and as of the Closing as if made on and as of the Closing (other than any such
representations and warranties which by their express terms are made solely as of a specified
earlier date, which shall be accurate as of such specified earlier date), except where the

17

 

inaccuracy of one or more of such representations and warranties, individually or in the
aggregate, would not have a Material Adverse Effect on the Purchasers.

          (b) Performance. The Purchasers shall have performed and complied with, in all
material respects, each agreement, covenant and obligation required by this Agreement to be so
performed or complied with by the Purchaser at or before the Closing, including delivery of the
Acquisition Consideration pursuant to Section 1.3, in the amount and form specified in Section 1.3
of the Company Disclosure Schedule, to each Seller.

          (c) Closing Certificate. The Purchasers shall have delivered to the Sellers a
certificate, dated the date of the Closing and executed by a duly authorized officer, to the effect
that each of the conditions specified in Sections 6.2(a) and (b) above has been satisfied.

     6.3 Additional Conditions to the Obligations of the Purchasers. The obligations of
the Purchasers to consummate the Acquisition and the other transactions contemplated by this
Agreement shall be subject to the satisfaction at or prior to the Closing of each of the following
conditions, any of which may be waived, in writing, exclusively by the Purchasers:

          (a) Representations and Warranties. The representations and warranties of the Company
and each Seller contained in this Agreement shall be accurate in all respects as of the date of
this Agreement and as of the Closing as if made on and as of the Closing (other than
representations and warranties which by their express terms are made as of a specified earlier
date, which shall be accurate as of such specified earlier date), except where the inaccuracy of
one or more of such representations and warranties, individually or in the aggregate, would not
have a Material Adverse Effect on the Company.

          (b) Performance. The Company and each Seller shall have performed and complied with,
in all material respects, each agreement, covenant or obligation required by this Agreement to be
so performed or complied with by the Company or any Seller, as the case may be, at or before the
Closing.

          (c) Closing Certificate. The Sellers shall have delivered to the Purchaser a
certificate, dated the date of the Closing, to the effect that each of the conditions specified in
Sections 6.3(a) and (b) above has been satisfied.

          (d) Recordation of Transfer. The transfer by the Sellers to the Purchasers of the
Company Equity Interests shall have been properly recorded in the Books and Records of the Company.

          (e) Releases. Each of the Sellers and each of the persons listed on Section 2.5 of
the Company Disclosure Schedule shall have executed and delivered a Release to the Company in
accordance with Section 5.12.

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ARTICLE 7

SURVIVAL OF REPRESENTATIONS, WARRANTIES, COVENANTS AND

AGREEMENTS; INDEMNIFICATION

     7.1 Survival of Representations, Warranties, Covenants and Agreements.
Notwithstanding any right of the Purchasers (whether or not exercised) to investigate the affairs
of the Sellers or the Company (whether pursuant to Section 5.1 or otherwise) or a waiver by the
Purchasers of any condition to Closing set forth in Article 6, the Purchasers shall have the right
to rely fully upon the representations, warranties, covenants and agreements of the other party
contained in this Agreement or in any instrument delivered pursuant to this Agreement. The
indemnification obligations of the Sellers in Section 7.2 insofar as such indemnification
obligations relate to tax or labor matters shall survive the Closing and continue until the fifth
(5th) anniversary of the Closing, and all of the other indemnification obligations of
the Sellers in Section 7.2 and of the Purchasers and the Company in Section 7.3 shall survive the
Closing and continue until the third (3rd) anniversary of the Closing (the “Expiration
Date”); provided, however, that all of the representations and warranties made by the Company
contained in this Agreement or in any instrument delivered pursuant to this Agreement shall expire
upon the Closing. For the avoidance of doubt, each provision of Article 1 and all corresponding
sections of the Company Disclosure Schedule shall survive until the satisfaction of all obligations
described therein, and each provision of Article 9 and Article 10 shall survive so long as it is
relevant to any other surviving provision. No Action or Proceeding may be instituted to enforce, or
seek damages or other remedies with respect to the breach of any representation or warranty after
the expiration of the period of survival for such representation or warranty as described above.

     7.2 Indemnification by the Sellers. After the Closing, the Purchasers, their
Affiliates (including, after the Closing, the Company), and their respective officers, managers,
directors, shareholders, employees, agents, successors and assigns (each a “Purchaser Indemnified
Party” and collectively, the “Purchaser Indemnified Parties”) shall be indemnified and held
harmless by each of the Sellers, jointly and severally, for any and all Liabilities, losses,
damages of any kind, claims, costs, expenses, fines, fees, deficiencies, interest, awards,
judgments, amounts paid in settlement and penalties (including, without limitation, attorneys’,
consultants’ and experts’ fees and expenses and other costs of defending, investigating or settling
claims) actually suffered or incurred by them (including, without limitation, in connection with
any action brought or otherwise initiated by any of them) (hereinafter, “Loss(es)”), arising out of
or resulting from:

          (i) any breach of the Seller’s representations and warranties hereunder or any material
misrepresentations in any instrument delivered pursuant to this Agreement at the Closing;

          (ii) any breach of any covenant or agreement required to be performed prior to the Closing by
the Company or any covenant or agreement made by any of the Sellers, in each case in this Agreement
or in any other instrument delivered pursuant to this Agreement at the Closing;

19

 

          (iii) breach of contract or other claims made by any party alleging to have had a contractual
or other right to acquire Company Equity Interests or any of the Acquired Assets;

          (iv) any Company Expenses required to be paid by the Sellers pursuant to Section 5.3;

          (v) the Remaining Litigation;

          (vi) any and all civil (including contractual), commercial, Tax (other than income tax), labor
and employment, legal and/or administrative liabilities of the Company (including any liabilities
with any Affiliates of the Sellers prior to the Closing Date), and of any of its predecessors to
the extent that they arise, are caused or are incurred prior to the Closing Date; or

          (vii) the diminution, impairment or reduction of the amount of the Tax Credits to an amount
less than the Acquisition Consideration, in which case the extent of any such Losses shall be
limited to the deficiency below the Acquisition Consideration; provided, however, that if such
Losses result from knowing fraud on the part of any Seller, any such Seller shall fully indemnify
the Purchasers for the entire diminution, impairment or reduction of the amount of the Tax Credits.

     7.3 Indemnification by the Purchasers and the Company. After the Closing, the Sellers,
their Affiliates, and their respective officers, managers, directors, shareholders, employees,
agents, successors and assigns (each a “Seller Indemnified Party” and collectively, the “Seller
Indemnified Parties”) shall be indemnified and held harmless by each of the Purchasers and the
Company, jointly and severally, for any and all Losses, arising out of or resulting from:

          (i) any and all civil (including contractual), commercial, Tax, labor and employment, legal
and/or administrative liabilities of the Company, and of any of its successors to the extent that
they arise, are caused or are incurred on or after the Closing Date and are not attributable to
willfully negligent acts or omissions of the Sellers or the Company prior to the Closing Date;

          (ii) any breach of the Purchasers’ representations and warranties hereunder or any material
misrepresentations in any instrument delivered pursuant to this Agreement at the Closing; or

          (iii) any breach of any covenant or agreement made by any of the Purchasers and any breach of
any covenant or agreement of the Company required to be performed after the Closing, in each case
in this Agreement or in any other instrument delivered pursuant to this Agreement at the Closing.

20

 

     7.4 Limitations on Liability.

          (a) Neither the Sellers, on the one hand, nor the Purchasers or the Company, on the
other hand, shall have any obligation to indemnify any Purchaser Indemnified Party or any
Seller Indemnified Party, respectively, pursuant to Section 7.2 or Section 7.3, respectively,
unless and until the aggregate of all Losses suffered or incurred by all Purchaser Indemnified
Parties or Seller Indemnified Parties, as applicable, which would otherwise be subject to
indemnification hereunder exceeds US$100,000 (the “Threshold”), at which time such
Purchaser Indemnified Parties or Seller Indemnified Parties shall be entitled to be indemnified
against all Losses in excess of such amount. This limitation shall not apply to the obligation of
the Sellers to indemnify the Purchasers and the Company for, and hold them harmless from, any
Losses arising out of or in connection with the Remaining Litigation. Notwithstanding the
foregoing, the Sellers shall have no obligation to the Purchasers or the Company with respect to
Losses relating to the Tax Credits or their impairment arising from a breach of the Sellers’ or the
Company’s representations, warranties or covenants, or otherwise, unless and until the value of
such Tax Credits is impaired to a value of less than the Acquisition Consideration (and then only
to the extent of the amount below the Acquisition Consideration), except when such impairment or
diminution results from the knowing fraud of the Sellers or the Company prior to the Closing, in
which case, the Sellers shall fully indemnify the Purchasers and the Company for any impairment or
diminution attributable to such knowing fraud without any deduction, subject to Section 7.4(b). In
addition, the Sellers shall have no indemnification obligation to the Purchasers or the Company for
(i) any impairment or diminution in the value of the Tax Credits caused by any change in Tax rates
or Tax Law after the Closing or any action taken by the Purchasers or the Company after the
Closing, (ii) any labor claims or Liabilities of the Company arising after the Closing Date,
including, without limitation, any claims for payment of amounts due for profit sharing to
employees or former employees except for claims or Liabilities arising from or related to labor or
employment obligations of the Company existing prior to the Closing Date or (iii) any breach of the
representation contained in Section 2A.6 unless a third party attempts to unwind the transactions
consummated pursuant to this Agreement based on such transactions resulting in a fraudulent
conveyance or preference transaction.

          (b) Neither the Sellers, on the one hand, nor the Purchasers or the Company, on the other
hand, shall have any obligation to indemnify the Purchaser Indemnified Parties or Seller
Indemnified Parties, as applicable, pursuant to Section 7.2 or Section 7.3, respectively, for
aggregate Losses exceeding the Acquisition Consideration; provided, however, that this limitation
shall not apply to the obligation of the Sellers to indemnify the Purchasers and the Company for,
and hold them harmless from, any Losses arising out of or in connection with the Remaining
Litigation.

          (c) The rights of the parties for indemnification relating to this Agreement or the
transactions contemplated hereby shall be strictly limited to those contained in this Article 7,
and such indemnification rights shall be the exclusive remedies of the parties subsequent to the
Closing Date with respect to any matter arising under or in connection with this Agreement;
provided, however, that such limitation shall not apply to any damages arising from or related to
any acts of fraud committed by either party. To the maximum extent permitted by applicable Law and
except as set forth in this Article 7, the parties hereto hereby waive all other rights and
remedies with respect to any matter arising under or in connection with this Agreement, whether
under any Law, at common law or otherwise. Except as provided in this Article 7, no claim,

21

 

action or remedy shall be brought or maintained by any party hereto, or its Affiliates,
successors or permitted assigns against any other party hereto, and no recourse shall be sought or
granted against any of them, by virtue of or based upon any alleged misstatement or omission
respecting an inaccuracy in or breach of any of the representations, warranties or covenants of any
of the parties hereto set forth or contained in this Agreement.

          (d) In addition, Losses shall not under any circumstances include any consequential, punitive
or exemplary damages or lost profits; provided, however, that this limitation shall not apply to
consequential, punitive or exemplary damages or lost profits awarded to a third party against the
Company under any of the Remaining Litigation. Any party entitled to indemnification hereunder
shall take all reasonable steps to mitigate Losses upon and after becoming aware of any event that
could reasonably be expected to give rise to such Losses.

     7.5 Notice; Payment of Losses; Defense of Claims. For purposes of this Section 7.5,
the term “Indemnifying Party” shall include any Seller with respect to matters arising under
Section 7.2 or any Purchaser or the Company (post-closing) with respect to matters arising under
Section 7.3, and the term “Indemnified Party” shall include any Purchaser Indemnified Party with
respect to matters arising under Section 7.2 or any Seller Indemnified Party with respect to
matters arising under Section 7.3.

          (a) An Indemnified Party shall give written notice to the appropriate Indemnifying Party
promptly, and in any event not later than sixty (60) Business Days after assertion of any written
claim by any third party (for purposes of this Section, including claims or notices by any
Governmental or Regulatory Authority), specifying in reasonable detail the amount, nature and
source of the claim, and including therewith copies of any notices or other documents received from
third parties with respect to such claim; provided, however, that failure to give
such notice shall not limit the right of an Indemnified Party to recover indemnity or reimbursement
except to the extent that the Indemnifying Party is materially prejudiced thereby. The Indemnified
Party shall also provide the Indemnifying Party with such further information concerning any such
claims as the Indemnifying Party may reasonably request by written notice.

          (b) Within thirty (30) days after receiving notice of a claim for indemnification or
reimbursement, the Indemnifying Party shall, by written notice to the Indemnified Party, either (1)
concede or deny liability for the claim in whole or in part, or (2) in the case of a claim asserted
by a third party, advise that the matters set forth in the notice are, or will be, subject to
contest or legal proceedings not yet finally resolved. If the Indemnifying Party concedes
liability in whole or in part, the Indemnifying Party shall, within twenty (20) days of such
concession, pay the amount of the claim to the Indemnified Party to the extent of the liability
conceded. Any such payment shall be made in immediately available funds equal to the amount of
such claim so payable. As to any dispute which is not resolved in the ordinary course of business,
the Parties shall first attempt in good faith to promptly resolve such dispute by negotiations
between executives. Either of the Parties may initiate this procedure by delivery of written
notice of the dispute (the “Dispute Notice”) to the other. Not later than 20 days after delivery
of the Dispute Notice, one executive of one of the Parties shall meet with one executive of the
other party at a reasonably acceptable time and place, and thereafter as such executives shall deem
reasonably

22

 

necessary. The executives shall exchange relevant information and endeavor to resolve the dispute.
Prior to any such meeting, each Party’s executive shall advise the other as to any individuals who
will attend such meeting with the executive. All negotiations pursuant to this Section 7.5(b)
shall be confidential and shall be treated as compromise negotiations.

          (c) In the case of any third party claim, if within twenty (20) days after receiving the
notice described in the preceding paragraph (a) the Indemnifying Party (i) gives written notice to
the Indemnified Party stating that it disputes and intends to defend against such claim, liability
or expense at its own cost and expense and (ii) provides reasonable assurance to such Indemnified
Party that such indemnification will be paid fully and promptly if required, then counsel for the
defense shall be selected by the Indemnifying Party (subject to the consent of all Indemnified
Parties which consent shall not be unreasonably withheld) and all Indemnifying Parties shall not be
required to make any payment with respect to such claim, liability or expense as long as the
Indemnifying Party or Parties are conducting a good faith and diligent defense at their own
expense; provided, however, that the assumption of defense of any such matters by
the Indemnifying Party or Parties shall relate solely to the claim, liability or expense that is
subject or potentially subject to indemnification. If the Indemnifying Party or Parties assume
such defense in accordance with the preceding sentence, they shall have the right, with the consent
of such Indemnified Party or Parties, which consent shall not be unreasonably withheld, to settle
all indemnifiable matters related to claims by third parties which are susceptible to being settled
provided the Indemnifying Party or Parties’ obligation to indemnify such Indemnified Party or
Parties therefore will be fully satisfied by payment of money by the Indemnifying Party pursuant to
a settlement which includes a complete release of such Indemnified Party or Parties. The
Indemnifying Party or Parties shall keep such Indemnified Party or Parties apprised of the status
of the claim, liability or expense and any resulting suit, proceeding or enforcement action, shall
furnish such Indemnified Party or Parties with all documents and information that such Indemnified
Party or Parties shall reasonably request and shall consult with such Indemnified Party or Parties
prior to acting on major matters, including settlement discussions. Notwithstanding anything
herein stated, such Indemnified Party or Parties shall at all times have the right to participate
in such defense at its own expense directly or through counsel; provided, however,
if the named parties to the action or proceeding include both the Indemnifying Party or Parties and
the Indemnified Party or Parties and representation of both parties by the same counsel would be
inappropriate under applicable standards of professional conduct, the reasonable expense of
separate counsel for such Indemnified Party or Parties shall be paid by the Indemnifying Party or
Parties. If no such notice of intent to dispute and defend is given within the applicable term as
referred to above by the Indemnifying Party or Parties, or if such diligent good faith defense is
not being or ceases to be conducted, such Indemnified Party or Parties shall, at the expense of the
Indemnifying Party or Parties, undertake the defense of (with counsel selected by such Indemnified
Party or Parties), and shall have the right to compromise or settle, such claim, liability or
expense. If such claim, liability or expense is one that by its nature cannot be defended solely
by the Indemnifying Party or Parties, then such Indemnified Party or Parties shall make available
all information and assistance that the Indemnifying Party or Parties may reasonably request and
shall cooperate with the Indemnifying Party or Parties in such defense.

     7.6. Right of Offset. In the event the Purchasers notify the Sellers of a good faith
specific indemnifiable claim pursuant to this Article 7, the Purchasers may set-off and retain
until

23

 

final resolution of such claim the reasonable amount of such claim against amounts received in
respect of the Remaining Litigation that would otherwise be remitted to the Sellers as provided in
Section 5.16. If the Sellers indemnify the Purchasers with respect to such claim prior to its
final resolution, the Purchasers shall immediately following receipt of such indemnification remit
to the Sellers from the amount set-off an amount equal to the indemnification payment. If upon
final resolution of such claim, the final amount payable to the Purchasers with respect to such
claim (net of any prior indemnification payments) is greater than or equal to the amount set-off
pursuant to this Section 7.6, the Purchasers shall be entitled to retain the entire amount set-off
pursuant to this Section 7.6. If upon final resolution of such claim, the final amount payable to
the Purchasers with respect to such claim (net of any prior indemnification payments) is less than
the amount set-off pursuant to this Section 7.6, the Purchasers shall remit to the Sellers pursuant
to the written instructions of the Sellers the difference between the amount set-off and the amount
of such claim as finally determined. Any amounts set-off as herein provided shall be deemed to
have been remitted to the Sellers for all purposes of this Agreement. The right of the Purchasers
to set-off and recoup amounts payable by the Sellers is in addition to, and not in lieu of, any
other rights the Purchasers may have at law, in equity, under the terms of this Agreement or
otherwise with respect to recovering such amounts from the Sellers.

     7.7 Adjustment to Acquisition Consideration. Any payment made pursuant to this Article 7
shall be treated by the parties as an adjustment to the Acquisition Consideration for all Tax
purposes.

ARTICLE 8

TERMINATION, AMENDMENT AND WAIVER

     8.1 Termination. Except as provided in Section 8.2, this Agreement may be terminated
and the Acquisition abandoned at any time prior to the Closing:

          (a) by mutual agreement of all of the Sellers and the Purchasers;

          (b) by the Purchasers or all of the Sellers if: (i) the Closing has not occurred before 5:00
p.m. (Eastern Time) on April 28, 2005 (provided, however, that the right to terminate this
Agreement under this Section 8.1(b)(i) shall not be available to any party whose failure, or the
failure of any of such party’s Subsidiaries or Affiliates, to fulfill any obligation hereunder has
been the cause of, or resulted in the failure of the Closing to occur on or before such date); (ii)
there shall be a final nonappealable Order of a federal or state court in effect preventing
consummation of the Acquisition; or (iii) there shall be any Law or Order enacted, promulgated or
issued by any Governmental or Regulatory Authority that would make consummation of the Acquisition
illegal;

          (c) by the Purchasers if there shall be any Law or Order enacted, promulgated or issued or
deemed applicable to the Acquisition, by any Governmental or Regulatory Authority, which would: (i)
prohibit the Purchasers’ ownership of the Company, (ii) compel the Purchasers

24

 

to dispose of or hold separate all or any portion of the Acquired Assets of the Company as a
result of the Acquisition or (iii) deny the Purchasers the benefit of any portion of the Tax
Credits;

          (d) by the Purchasers if neither of them is in material breach of its respective
representations, warranties, covenants and agreements under this Agreement and there has been a
breach of any representation, warranty, covenant or agreement contained in this Agreement on the
part of the Company that results in a Material Adverse Effect on the Company and (i) the Company is
not using its commercially reasonable efforts to cure such breach, or has not cured such breach
within fifteen (15) days, after notice of such breach to the Company (provided, however, that, no
cure period shall be available for a breach which by its nature cannot be cured) and (ii) as a
result of such breach any of the conditions set forth in Section 6.1 or Section 6.3, as the case
may be, would not be satisfied as of the date specified in Section 8.1(b)(i); and

          (e) by the Sellers if neither of them is in material breach of its representations,
warranties, covenants and agreements under this Agreement and there has been a breach of any
representation, warranty, covenant or agreement contained in this Agreement on the part of either
Purchaser that results in a Material Adverse Effect on either Purchaser and (i) the Purchasers are
not using their commercially reasonable efforts to cure such breach, or have not cured such breach
within fifteen (15) days, after notice of such breach to the Purchasers (provided, however, that no
cure period shall be available for a breach which by its nature cannot be cured), and (ii) as a
result of such breach any of the conditions set forth in Section 6.1 or Section 6.2, as the case
may be, would not be satisfied as of the date specified in Section 8.1(b)(i).

     8.2 Effect of Termination. In the event of a valid termination of this Agreement as
provided in Section 8.1, this Agreement shall forthwith become void and there shall be no liability
or obligation on the part of the Purchasers, the Sellers or the Company, or their respective
officers, managers or partners or members or Affiliates or Associates; provided, however, that each
party shall remain liable for any breaches of this Agreement prior to its termination; and provided
further that, the provisions of Sections 5.2, 5.3, 5.4 and 8.2, Article 9 (exclusive of Section
9.3) and the applicable definitions set forth in Article 10 shall remain in full force and effect
and survive any termination of this Agreement.

     8.3 Amendment. This Agreement may be amended by the parties hereto at any time by
execution of an instrument in writing signed on behalf of each of the parties hereto.

     8.4 Extension; Waiver. At any time prior to the Closing, the Purchasers and the
Sellers may (but shall not be obligated to), to the extent legally allowed, (a) extend the time for
the performance of any of the obligations of the other party hereto, (b) waive any inaccuracies in
the representations and warranties made to such party contained herein or in any document delivered
pursuant hereto, and (c) waive compliance with any of the agreements, covenants or conditions for
the benefit of such party contained herein. Any agreement on the part of a party hereto to any
such extension or waiver shall be valid only if set forth in an instrument in writing signed on
behalf of such party.

25

 

ARTICLE 9

MISCELLANEOUS PROVISIONS

     9.1 Notices. All notices, requests and other communications hereunder must be in
writing and will be deemed to have been duly given only if delivered personally or by facsimile
transmission against facsimile confirmation or mailed by a nationally recognized overnight courier
prepaid, to the parties at the following addresses or facsimile numbers:

If to the Purchasers to:

Comunicaciones Nextel de Mexico, S.A. de C. V.

Blvd. Manuel Avila Camacho No. 36 Piso 9

Colonia Lomas de Chapultepec, C.P. 11000

México, D.F.

Facsimile No.: 10184010 Ext. 3619

Attn: Antonio Garza Cánovas

Vice President and General Counsel

Servicios NII, S.A. de C.V.

Blvd. Manuel Avila Camacho No. 36 Piso 9

Colonia Lomas de Chapultepec, C.P. 11000

México, D.F.

Facsimile No.: 10.18.40.10 Ext. 3619

Attn: Antonio Garza Cánovas

Vice President and General Counsel

with a copy (which shall not constitute notice) to:

Williams Mullen

1666 K Street, N.W.

Suite 1200

Washington, D.C. 20006

Facsimile No.: 202.293.5939

Attn: James A. Blalock III, Esq.

If to the Company:

AOL Mexico, S. de R.L. de C.V.

Torre Esmeralda II

Blvd. Manuel Avila Camacho 36

Lomas de Chapultepec

11000 Mexico, DF Mexico

Facsimile No.: 525.284.6895

Attn: General Manager

26

 

with a copy, if prior to the Closing, to the Sellers (which shall not constitute notice)

If to the Sellers:

American Online Latin America, Inc.

6600 N. Andrew Ave., Suite 400

Fort Lauderdale, FL 33309 USA

Facsimile No.: (954) 233-1811

Attn: General Counsel

Latin America QuotaHolder, LLC

6600 N. Andrew Ave., Suite 400

Fort Lauderdale, FL 33309 USA

Facsimile No.: (954) 233-1811

Attn: General Counsel

with a copy (which shall not constitute notice) to:

Baker & Hostetler LLP

3200 National City Center

1900 East 9th Street

Cleveland, Ohio 44114-3485 USA

Facsimile No.: (216) 696-0740

Attn: John M. Gherlein, Esq.

All such notices, requests and other communications under this Agreement shall be in English and
will (a) if delivered personally to the address as provided in this Section 9.1, be deemed given
upon delivery, (b) if delivered by facsimile transmission to the facsimile number as provided for
in this Section 9.1, be deemed given upon facsimile confirmation, and (c) if delivered by overnight
courier to the address as provided in this Section 9.1, be deemed given on the earlier of the
second Business Day following the date sent by such overnight courier or upon receipt (in each case
regardless of whether such notice, request or other communication is received by any other Person
to whom a copy of such notice is to be delivered pursuant to this Section 9.1). Any party from
time to time may change its address, facsimile number or other information for the purpose of
notices to that party by giving notice specifying such change to the other party hereto.

     9.2 Entire Agreement. This Agreement (including the Exhibits hereto and the Company
Disclosure Schedule) constitutes the entire Agreement among the parties with respect to the subject
matter hereof and supersedes all prior agreements and understandings, both written and oral, among
the parties with respect to the subject matter hereof (including specifically, without limitation,
the Summary of Indicative Terms and Conditions dated October 22, 2004 by and between the Sellers
and the Purchasers), except for the Confidentiality Agreement (which shall continue in full force
and effect and shall survive any termination of this Agreement or the

27

 

Closing in accordance with their terms, and shall be deemed to have the same effect on
construction or interpretation of this Agreement as if set forth herein).

     9.3 Waiver. Any term or condition of this Agreement may be waived at any time by the
party that is entitled to the benefit thereof, but no such waiver shall be effective unless set
forth in a written instrument duly executed by or on behalf of the party waiving such term or
condition. No waiver by any party of any term or condition of this Agreement, in any one or more
instances, shall be deemed to be or construed as a waiver of the same or any other term or
condition of this Agreement on any future occasion. All remedies, either under this Agreement or
by Law or otherwise afforded, will be cumulative and not alternative.

     9.4 Third-Party Beneficiaries. The terms and provisions of this Agreement are
intended solely for the benefit of each party hereto and their respective successors or permitted
assigns, and it is not the intention of the parties to confer third-party beneficiary rights, and
this Agreement does not confer any such rights, upon any other Person other than any Person
entitled to indemnity under Article 7. Notwithstanding the foregoing, the restrictions on use,
transfer and disclosure of the Customer Information set forth in Section 5.13 are intended to
benefit any Person who purchases the business of AOL S. DE R.L. DE C.V., and such Person shall have
the right to enforce the restrictions set forth in that Section.

     9.5 No Assignment; Binding Effect. Neither this Agreement nor any right, interest or
obligation hereunder may be assigned (by operation of law or otherwise) by any party without the
prior written consent of the other party and any attempt to do so will be void; provided, however, that each Seller shall be
permitted to assign this Agreement and its rights, interests and
obligations hereunder to any purchaser of its business as long as such Seller remains jointly and
severally liable with such Purchaser under this Agreement. Subject to the preceding sentence, this Agreement is binding upon,
inures to the benefit of and is enforceable by the parties hereto and their respective successors
and assigns.

     9.6 Headings. The headings and table of contents used in this Agreement have been
inserted for convenience of reference only and do not define or limit the provisions hereof.

     9.7 Invalid Provisions. If any provision of this Agreement is held to be illegal,
invalid or unenforceable under any present or future Law, and if the rights or obligations of any
party hereto under this Agreement will not be materially and adversely affected thereby, (a) such
provision will be fully severable, (b) this Agreement will be construed and enforced as if such
illegal, invalid or unenforceable provision had never comprised a part hereof, (c) the remaining
provisions of this Agreement will remain in full force and effect and will not be affected by the
illegal, invalid or unenforceable provision or by its severance herefrom and (d) in lieu of such
illegal, invalid or unenforceable provision, there will be added automatically as a part of this

28

 

Agreement a legal, valid and enforceable provision as similar in terms to such illegal,
invalid or unenforceable provision as may be possible.

     9.8 Governing Law, Submission to Jurisdiction. This Agreement and any other closing
documents shall be governed by and construed in accordance with the laws of Mexico, without giving
effect to its principles or rules regarding conflicts of laws, other than such principles directing
application of the laws of Mexico. Each party hereto irrevocably agrees that any legal action or
proceeding with respect to this Agreement or for recognition and enforcement of any judgment in
respect hereof brought by another party hereto or its successors or assigns shall be brought and
determined by either a state court or federal court sitting in the State of New York and each party
hereto hereby irrevocably submits with regard to any such action or proceeding for itself and in
respect to its property, generally and unconditionally, to the nonexclusive jurisdiction of the
aforesaid courts. Each party hereto hereby irrevocably waives, and agrees not to assert, by way of
motion, as a defense, counter claim or otherwise, in any action or proceeding with respect to this
Agreement, (a) any claim that it is not personally subject to the jurisdiction of the above-named
courts for any reason other than the failure to serve process in accordance with this Section 9.8,
(b) that it or its property is exempt or immune from jurisdiction of any such court or from any
legal process commenced in such courts (whether through service of notice, attachment prior to
judgment, attachment in aid of execution of judgment, execution of judgment or otherwise), and (c)
to the fullest extent permitted by applicable law, that (i) the suit, action or proceeding in any
such court is brought in an inconvenient forum, (ii) the venue of such suit, action or proceeding
is improper and (iii) this Agreement, or the subject matter hereof, may not be enforced in or by
such courts.

     9.9 WAIVER OF TRIAL BY JURY. IN ANY ACTION OR PROCEEDING ARISING HEREFROM, THE
PARTIES HERETO CONSENT TO TRIAL WITHOUT A JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY
ANY PARTY HERETO AGAINST THE OTHER OR THEIR SUCCESSORS IN RESPECT OF ANY MATTER ARISING OUT OF OR
IN CONNECTION WITH THIS AGREEMENT, REGARDLESS OF THE FORM OF ACTION OR PROCEEDING.

     9.10 Construction. The parties hereto agree that this Agreement is the product of
negotiation between sophisticated parties and individuals, all of whom were represented by counsel,
and each of whom had an opportunity to participate in and did participate in, the drafting of each
provision hereof. Accordingly, ambiguities in this Agreement, if any, shall not be construed
strictly or in favor of or against any party hereto but rather shall be given a fair and reasonable
construction without regard to the rule of contra proferentem.

     9.11 Counterparts. This Agreement may be executed in any number of counterparts, each
of which will be deemed an original, but all of which together will constitute one and the same
instrument.

     9.12 Specific Performance. The parties hereto agree that irreparable damage would
occur in the event that any of the provisions of this Agreement were not performed in accordance
with their specific terms or were otherwise breached. Notwithstanding Section 9.8, it is agreed

29

 

that the parties shall be entitled to an injunction or injunctions to prevent breaches of this
Agreement and to enforce specifically the terms and provisions hereof in any court of the United
States or any state having jurisdiction or Mexico (as applicable), this being in addition to any
other remedy to which they are entitled at law or in equity. Nothing in Article 7 shall be
construed or interpreted to limit this Section 9.12.

ARTICLE 10

DEFINITIONS

     10.1 Definitions. As used in this Agreement, the following defined terms shall have
the meanings indicated below:

          “Accounts Receivable” is defined in Section 2.19 hereof.

          “Acquired Assets” is defined in Section 2.16 hereof.

          “Acquisition” is defined in Section of the Recitals to this Agreement.

          “Acquisition Consideration” is defined in Section 1.3 hereof.

          “Actions or Proceedings” means any action, suit, complaint, subpoena, petition, investigation,
proceeding, arbitration, mediation, litigation or Governmental or Regulatory Authority
investigation, audit, document request or other proceeding, whether civil or criminal, in law or in
equity, or before any arbitrator or Governmental or Regulatory Authority.

          “Affiliate” means, as applied to any Person, any other Person directly or indirectly
controlling, controlled by or under common control with, that Person. For the purposes of this
definition, “control” (including with correlative meanings, the terms “controlling”, “controlled
by”, and “under common control with”) as applied to any Person, means the possession, directly or
indirectly, of the power to direct or cause the direction of the management and policies of that
Person, whether through ownership of voting securities or by contract or otherwise.

          “Agreement” means this Equity Purchase Agreement, including (unless the context otherwise
requires) the Exhibits, the Company Disclosure Schedule and the certificates and instruments
delivered in connection herewith, or incorporated by reference, as the same may be amended or
supplemented from time to time in accordance with the terms hereof.

          “Approval” means any approval, authorization, consent, novation, permit, qualification or
registration, or any waiver of any of the foregoing, required to be obtained from or made with, or
any notice, statement or other communication required to be filed with or delivered to, any
Governmental or Regulatory Authority or any other Person.

          “Assets” of any Person means all assets and properties of every kind, nature, character and
description (whether real, personal or mixed, whether tangible or intangible,

30

 

whether absolute, accrued, contingent, fixed or otherwise and wherever situated), including
the goodwill related thereto, operated, owned, licensed or leased by such Person, including cash,
cash equivalents, Investment Assets, accounts and notes receivable, chattel paper, documents,
instruments, general intangibles (including rights under Contracts), real estate, equipment,
inventory, goods and intellectual property.

          “Associate” means, with respect to any Person, any corporation or other business organization
of which such Person is an officer or partner or is the beneficial owner, directly or indirectly,
of ten percent (10%) or more of any class of equity securities, any trust or estate in which such
Person has a substantial beneficial interest or as to which such Person serves as a trustee or in a
similar capacity and any relative or spouse of such Person, or any relative of such spouse, who has
the same home as such Person.

          “Books and Records” means files, documents, instruments, papers, books and records relating to
the Business or Condition of the Company, including, without limitation, financial statements, Tax
Returns and related work papers and letters from accountants, general ledgers, minute books,
partners registry, capital variations books, equity transfer ledgers, equity certificates and
books, Contracts, and licenses, excluding, however, in all cases any materials that contain any
confidential information of any third party (other than the Company) that is restricted by
agreement or applicable law from being disclosed to the Purchaser and/or Persons.

          “Business Day” means a day other than Saturday, Sunday or any day on which banks located in
the Federal District of Mexico are authorized or obligated to close.

          “Business or Condition of the Company” means the business, condition (financial or otherwise),
results of operations or Assets of the Company, considered in the aggregate.

          “Closing” is defined in Section 1.2 hereof.

          “Closing Date” is defined in Section 1.2 hereof.

          “Company” is defined in the opening paragraph of this Agreement.

          “Company Equity Interests” is defined in Section 2.3(a) hereof.

          “Company Disclosure Schedule” means the schedules delivered to the Purchaser by or on behalf
of the Company in connection with the execution of this Agreement, containing all lists,
descriptions, exceptions and other information and materials as are required to be included therein
in connection with the representations and warranties made by the Company in Article 2 or
otherwise.

          “Company Financials” is defined in Section 2.7 hereof.

          “Company Financials Date” is defined in Section 2.9 hereof.

31

 

          “Company Options” means any Option to purchase or otherwise acquire a participation in the
equity capital of the Company.

          “Confidential Information” means all information, whether provided before or after the date
hereof, relating to the business or affairs of a Disclosing Party and its Affiliates and its
suppliers, in any form whatsoever whether in writing, oral, machine readable form, or through
access to the Disclosing Party’s premises, including without limitation technical or non-technical
data, software (whether in object or source code form), formulae, tools, patterns, plans,
compilations, programs, devices, methods, techniques, drawings, processes, financial data, lists of
actual or potential end customers or suppliers, marketing plans and business strategies, and also
means and includes the terms and conditions of this Agreement. Information disclosed by the
Disclosing Party need not be marked “Confidential” to be considered Confidential Information.
Notwithstanding the foregoing, Confidential Information shall not include (i) information that
becomes generally available to the public other than as a result of unauthorized disclosure by the
receiving party (“Receiving Party”) or persons to whom the Receiving Party has made such
information available and (ii) information that was available to the Receiving Party on a
non-confidential basis prior to receipt from the Disclosing Party or is received thereafter from a
third party lawfully entitled to such information without continuing restrictions on use.

          “Contract” means any note, bond, mortgage, contract, license, lease, sublease, agreement,
covenant, indenture or other binding commitment, oral or written.

          “Customer Information” is defined in Section 2.18 hereof.

          “Disclosing Party” is defined in Section 5.2 hereof.

          “Dispute Notice” is defined in Section 7.5(b) hereof.

          “Equity Equivalents” means securities (including Options to purchase any Company Equity
Interest) which, by their terms, are or may be exercisable, convertible or exchangeable for or into
an equity participation or other securities at the election of the holder thereof.

          “Expiration Date” is defined in Section 7.1 hereof.

          “GAAP” means, with respect to the preparation, determination or calculation of any financial
information, generally accepted accounting principles in Mexico, as in effect at the time of such
preparation, determination or calculation.

          “Governmental or Regulatory Authority” means any court, tribunal, authority, agency, bureau,
board, commission, department, official or other instrumentality of Mexico, the United States, any
foreign country or any domestic or foreign state, county, city or other political subdivision.

32

 

          “Indebtedness” of any Person means all obligations of such Person (a) for borrowed money, (b)
evidenced by notes, bonds, debentures or similar instruments, (c) for the deferred purchase price
of goods or services (other than trade payables or accruals incurred in the ordinary course of
business), (d) under capital leases classified as such under GAAP and (e) in the nature of
guarantees of the obligations described in clauses (a) through (d) above of any other Person.

          “Indemnified Party” is defined in Section 7.5 hereof.

          “Indemnifying Party” is defined in Section 7.5 hereof.

          “Investment Assets” means all debentures, notes and other evidences of Indebtedness, stocks,
securities (including rights to purchase and securities convertible into or exchangeable for other
securities), interests in joint ventures and general and limited partnerships, mortgage loans and
other investment or portfolio assets.

          “Law” or “Laws” means any law, statute, order, decree, consent decree, judgment, rule,
regulation, ordinance or other pronouncement having the effect of law whether in Mexico, the United
States, any foreign country, or any domestic or foreign state, county, city or other political
subdivision or of any Governmental or Regulatory Authority.

          “Liabilities” means all Indebtedness, obligations and other liabilities of a Person, whether
absolute, accrued, contingent (or based upon any contingency), known or unknown, fixed or
otherwise, or whether due or to become due.

          “Liens” means any mortgage, pledge, assessment, security interest, lease, lien, easement,
license, covenant, condition, restriction, adverse claim, levy, charge, option, equity, adverse
claim or restriction or other encumbrance of any kind, or any conditional sale Contract, title
retention Contract or other Contract to give any of the foregoing, except for (i) any restrictions
on transfer generally arising under any applicable federal or state securities law and (ii)
preemptive rights of the Sellers pursuant to the bylaws of the Company and applicable Laws in
Mexico.

          “Losses” is defined in Section 7.2.

          “Material Adverse Effect” means, with respect to the Company, a material adverse effect on the
Tax Credits or the Acquired Assets and means, with respect to the Sellers or the Purchasers, a
material adverse effect on the ability of such party to consummate the transactions contemplated
hereby.

          “Option” with respect to any Person means any security, right, subscription, warrant, option,
“phantom” stock right or other Contract that gives the right to (a) purchase or otherwise receive
or be issued any shares of capital stock or other equity interests of such Person or any security
of any kind convertible into or exchangeable or exercisable for any shares of capital stock or
other equity interests of such Person or (b) receive any benefits or rights similar

33

 

to any rights enjoyed by or accruing to the holder of shares of capital stock or other equity
interests of such Person, including any rights to participate in the equity, income or election of
directors or managers, as applicable, of such Person.

          “Order” means any writ, judgment, decree, injunction or similar order of any Governmental or
Regulatory Authority (in each such case whether preliminary or final).

          “Person” means any natural person, corporation, general partnership, limited partnership,
limited liability company or partnership, proprietorship, other business organization, trust,
union, association or Governmental or Regulatory Authority.

          “Plan” means (a) each of the employee benefit plans of the Company and (b) any employment,
severance or other arrangement or policy of the Company or any of its Affiliates (whether written
or oral) providing for health, life, vision or dental insurance coverage (including self-insured
arrangements), workers’ compensation, disability benefits, supplemental unemployment benefits,
vacation benefits or retirement benefits, fringe benefits, or for profit sharing, deferred
compensation, bonuses, stock options, stock appreciation or other forms of incentive compensation
or post-retirement insurance, compensation or benefits to the Company’s employees.

          “Purchaser” and “Purchasers” are defined in the opening paragraph to this Agreement.

          “Purchaser Indemnified Party” and “Purchaser Indemnified Parties” are defined in Section 7.2
hereof.

          “Receiving Party” is defined in Section 5.2 hereof.

          “Release” is defined in Section 5.12 hereof.

          “Remaining Litigation” shall mean the judicial or administrative procedures initiated by or
against the Company and described in Section 5.16 of the Company Disclosure Schedule.

          “Seller” and “Sellers” are defined in the opening paragraph to this Agreement.

          “Seller Indemnified Party” and “Seller Indemnified Parties” are defined in Section 7.3 hereof.

          “Subsidiary” means, with respect to any Person, any other Person in which such Person,
directly or indirectly, through third parties or otherwise, beneficially owns at least fifty
percent (50%) of either the equity interest in, or the voting control of, or otherwise the faculty
to control, such other Person, whether or not existing on the date hereof.

34

 

          “Tax” or “Taxes” means (a) any federal, state, local, or foreign income, gross receipts,
license, payroll, employment, excise, severance, stamp, occupation, premium, windfall profits,
environmental, customs duties, capital stock, franchise, profits, withholding, social security (or
similar), unemployment, disability, real property, personal property, sales, use, transfer,
registration, value added, alternative or add-on minimum, estimated, or other tax of any kind
whatsoever, including any interest, penalty, or addition thereto, whether disputed or not, (b) any
Liability for the payment of any amounts of the type described in clause (a) as a result of being a
member of an affiliated, consolidated, combined or unitary group for any taxable period, and (c)
any Liability for the payment of any amounts of the type described in clause (a) or (b) as a result
of any express or implied obligation to indemnify any other Person.

          “Tax Credits” means all accumulated past and present tax credits and/or benefits accrued for
any period prior to the Closing Date to which the Company is entitled under or pursuant to any tax
statute, regulation or ruling applicable to the Company, which are specified in the Company
Financials with respect to periods ending on or prior to December 31, 2004.

          “Tax Returns” means any return, declaration, report, claim for refund, or information return
or statement relating to Taxes, including any schedule or attachment thereto, and including any
amendment thereof.

          “Threshold” is defined in Section 7.4(a) hereof.

     10.2 Construction.

          (a) Unless the context of this Agreement otherwise requires, (i) words of any gender include
each other gender and the neuter, (ii) words using the singular or plural number also include the
plural or singular number, respectively, (iii) the terms “hereof,” “herein,” “hereby” and
derivative or similar words refer to this entire Agreement as a whole and not to any particular
Article, Section or other subdivision, (iv) the terms “Article” or “Section” or other subdivision
refer to the specified Article, Section or other subdivision of the body of this Agreement, (v) the
phrases “ordinary course of business” and “ordinary course of business consistent with past
practice” refer to the business and practice of the Company, (vi) the words “include,” “includes”
and “including” shall be deemed to be followed by the phrase “without limitation,” and (vii) when a
reference is made in this Agreement to Exhibits, such reference shall be to an Exhibit to this
Agreement unless otherwise indicated. When used herein, the terms “party” or “parties” refer to
the Purchaser, on the one hand, and the Company (prior to the Closing) and the Sellers, on the
other, and the terms “third party” or “third parties” refers to Persons other than the Purchasers,
the Company or the Sellers.

          (b) When used herein, the phrase “to the knowledge of” any Person or “known to” any Person,
means (i) with respect to any Person who is an individual, the actual knowledge of such Person and
(ii) with respect to any other Person, the actual knowledge of the directors and officers of such
Person and other individuals that have a similar position or have similar powers and duties as the
officers and senior management of such Person.

35

 

     IN WITNESS WHEREOF, the Purchasers, the Company and the Sellers, have caused this Agreement
to be signed by their duly authorized representatives, all as of the date first written above.

	 	 	 	 	 
	 	COMUNICACIONES NEXTEL DE MEXICO, S.A. DE C.V.

 	 
	 	By:  	/s/ Maria Cristina Pena Tellez
 	 
	 	 	Name:  	Maria Cristina Pena Tellez 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	                                              /s/
 Antonio Garza Canovas	 
	 	 	Name:  	Antonio Garza Canovas 	 
	 	 	Title:  	Vice President and General Counsel 	 
	 

	 	 	 	 	 
	 	SERVICIOS NII, S.A. DE C.V.

 	 
	 	By:  	/s/
 Maria Cristina Pena Tellez 	 
	 	 	Name:  	Maria Cristina Pena Tellez 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	                                              /s/
 Antonio Garza Canovas	 
	 	 	Name:  	Antonio Garza Canovas 	 
	 	 	Title:  	Vice President and General Counsel 	 
	 

	 	 	 	 	 
	 	AOL MEXICO, S. DE R.L. DE C.V.

 	 
	 	By:  	/s/
 Eduardo Escalante	 
	 	 	Name:  	Eduardo Escalante 	 
	 	 	Title:  	President 	 
	 

	 	 	 	 	 
	 	AMERICA ONLINE LATIN AMERICA, INC.

 	 
	 	By:  	/s/
 Paulo Moledo	 
	 	 	Name:  	Paulo Moledo 	 
	 	 	Title:  	Controller and Treasurer 	 
	 

	 	 	 	 	 
	 	LATIN AMERICA QUOTAHOLDER, LLC

 	 
	 	By:  	/s/
 Paulo Moledo	 
	 	 	Name:  	Paulo Moledo 	 
	 	 	Title:  	Manager 	 

36

 

	 	 	 	 	 

EXHIBITS AND COMPANY DISCLOSURE SCHEDULE

Exhibits

	 	 	 
	Exhibit A

	 	Form of Release for Company and Sellers
	Exhibit B

	 	Form of Agency Agreement

Company Disclosure Schedule

	 	 	 
	Section 1.1

	 	Outstanding Company Equity Interests
	Section 1.3

	 	Acquisition Consideration
	Section 2.3(b)

	 	Sellers
	Section 2.5

	 	Managers and Officers
	Section 2.7

	 	Company Financials
	Section 2.10

	 	Material Liabilities
	Section 2.12

	 	Legal Proceedings
	Section 2.16

	 	Acquired Assets
	Section 2.17

	 	Contracts
	Section 2.23(b)

	 	Other Approvals
	Section 2.23(c)

	 	Approvals of Company Ownership of the Acquired Assets by
	

	 	Governmental and Regulatory Authorities
	Section 5.16

	 	Remaining Litigation

 

EXHIBIT A

Form of Release for Company and Sellers

 

EXHIBIT B

Form of Agency Agreement

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