Document:

ex-4_18.htm

    

    Exhibit
      4.18

    
      

    

    BRIDGE
      CREDIT AGREEMENT

     

    dated
      as of November 30, 2006

     

    among

     

    AXTEL,
      S.A.B. DE C.V.,

     

    as
      Borrower,

     

    AVANTEL,
      S. DE R.L. DE C.V. and

    THE
      OTHER SUBSIDIARIES OF THE BORROWER,

     

    as
      Guarantors,

     

    

     

    VARIOUS
      FINANCIAL INSTITUTIONS,

     

    as
      Lenders,

     

    

     

    and

     

    

     

    CREDIT
      SUISSE, ACTING THROUGH

     

    ITS
      CAYMAN ISLANDS BRANCH,

     

    as
      the Administrative Agent

     

    

     

    

     

    _____________________________________________________________________

    

    CREDIT
      SUISSE, ACTING THROUGH

    ITS
      CAYMAN ISLANDS BRANCH ,

    as
      Sole Lead Arranger and Bookrunner

    

    
      

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

     

     

    Table
      of Contents

    

      
        

        
          
            	
                    ARTICLE
                      I  DEFINITIONS

                  	
                    1

                  
	
                    SECTION
                      1.1 CERTAIN DEFINED TERMS

                  	
                    1

                  
	
                    SECTION
                      1.2 OTHER INTERPRETIVE PROVISIONS

                  	
                    20

                  
	
                    SECTION
                      1.3 ACCOUNTING PRINCIPLES

                  	
                    21

                  
	
                    ARTICLE
                      II  THE CREDIT

                  	
                    22

                  
	
                    SECTION
                      2.1 AMOUNTS AND TERMS OF COMMITMENTS

                  	
                    22

                  
	
                    SECTION
                      2.2 NOTES

                  	
                    22

                  
	
                    SECTION
                      2.3 PROCEDURE FOR BORROWING

                  	
                    22

                  
	
                    SECTION
                      2.4 PREPAYMENTS

                  	
                    23

                  
	
                    SECTION
                      2.5 REPAYMENT

                  	
                    24

                  
	
                    SECTION
                      2.6 INTEREST

                  	
                    24

                  
	
                    SECTION
                      2.7 FEES

                  	
                    25

                  
	
                    SECTION
                      2.8 COMPUTATION OF FEES AND INTEREST

                  	
                    25

                  
	
                    SECTION
                      2.9 PAYMENTS BY CREDIT PARTIES

                  	
                    26

                  
	
                    SECTION
                      2.11 SHARING OF PAYMENTS, ETC.

                  	
                    27

                  
	
                    ARTICLE
                      III  TAXES AND ILLEGALITY

                  	
                    27

                  
	
                    SECTION
                      3.1 TAXES

                  	
                    27

                  
	
                    SECTION
                      3.2 ILLEGALITY

                  	
                    29

                  
	
                    SECTION
                      3.3 INCREASED COSTS AND REDUCTION OF RETURN

                  	
                    30

                  
	
                    SECTION
                      3.4 FUNDING LOSSES

                  	
                    31

                  
	
                    SECTION
                      3.5 INABILITY TO DETERMINE RATES

                  	
                    31

                  
	
                    SECTION
                      3.6 CERTIFICATES OF THE LENDERS AND ADMINISTRATIVE AGENT

                  	
                    32

                  
	
                    SECTION
                      3.7 SUBSTITUTION OF LENDERS

                  	
                    32

                  
	
                    SECTION
                      3.8 SURVIVAL

                  	
                    32

                  
	
                    ARTICLE
                      IV  CONDITIONS PRECEDENT

                  	
                    32

                  
	
                    SECTION
                      4.1 CONDITIONS PRECEDENT TO MAKING LOANS

                  	
                    32

                  
	
                    SECTION
                      4.2 SATISFACTION OF CONDITIONS PRECEDENT

                  	
                    36

                  
	
                    ARTICLE
                      V  REPRESENTATIONS AND WARRANTIES

                  	
                    36

                  
	
                    SECTION
                      5.1 REPRESENTATIONS AND WARRANTIES

                  	
                    36

                  

          

        

        

        
          
            
               

            

            
              -i-

              
                

              

            

            
               

            

          

        

        

        Table
          of Contents

        (continued)

        
 

        
          
            	 	 Page
	 	 
	
                    ARTICLE
                      VI  COVENANTS

                  	
                    43

                  
	
                    SECTION
                      6.1 AFFIRMATIVE COVENANTS

                  	
                    43

                  
	
                    SECTION
                      6.2 NEGATIVE COVENANTS

                  	
                    49

                  
	
                    ARTICLE
                      VII  DEFAULT/REMEDIES

                  	
                    58

                  
	
                    SECTION
                      7.1 DEFAULT/REMEDIES

                  	
                    58

                  
	
                    SECTION
                      7.2 ACCELERATION

                  	
                    61

                  
	
                    SECTION
                      7.3 RIGHTS NOT EXCLUSIVE

                  	
                    61

                  
	
                    ARTICLE
                      VIII  THE ADMINISTRATIVE AGENT

                  	
                    62

                  
	
                    SECTION
                      8.1 APPOINTMENT AND AUTHORIZATION

                  	
                    62

                  
	
                    SECTION
                      8.2 DELEGATION OF DUTIES

                  	
                    62

                  
	
                    SECTION
                      8.3 NO LIABILITY OF AGENT-RELATED PERSONS

                  	
                    62

                  
	
                    SECTION
                      8.4 RELIANCE BY THE AGENT-RELATED PERSONS

                  	
                    62

                  
	
                    SECTION
                      8.5 NOTICE OF DEFAULT

                  	
                    63

                  
	
                    SECTION
                      8.6 CREDIT DECISION

                  	
                    63

                  
	
                    SECTION
                      8.7 INDEMNIFICATION OF AGENT-RELATED PERSONS

                  	
                    64

                  
	
                    SECTION
                      8.8 THE AGENT-RELATED PERSONS IN THEIR INDIVIDUAL CAPACITY

                  	
                    64

                  
	
                    SECTION
                      8.9 SUCCESSOR ADMINISTRATIVE AGENT

                  	
                    65

                  
	
                    ARTICLE
                      IX  GUARANTY

                  	
                    65

                  
	
                    SECTION
                      9.1 GUARANTY

                  	
                    65

                  
	
                    SECTION
                      9.2 GUARANTY UNCONDITIONAL

                  	
                    66

                  
	
                    SECTION
                      9.3 DISCHARGE ONLY UPON PAYMENT IN FULL; REINSTATEMENT IN CERTAIN
                      CIRCUMSTANCES

                  	
                    66

                  
	
                    SECTION
                      9.4 WAIVER BY THE GUARANTORS

                  	
                    66

                  
	
                    SECTION
                      9.5 SUBROGATION

                  	
                    67

                  
	
                    SECTION
                      9.6 STAY OF ACCELERATION

                  	
                    67

                  
	
                    ARTICLE
                      X  MISCELLANEOUS

                  	
                    67

                  
	
                    SECTION
                      10.1 AMENDMENTS AND WAIVERS

                  	
                    67

                  
	
                    SECTION
                      10.2 NOTICES

                  	
                    68

                  
	
                    SECTION
                      10.3 NO WAIVER; CUMULATIVE REMEDIES

                  	
                    70

                  

          

        

      

       

      
        

        
          
            
               

            

            
              -ii-

              
                

              

            

            
               

            

          

        

         

        
          Table
            of Contents

          (continued)

        

        
          
            	 	 Page
	 	 
	
                    SECTION
                      10.4 COSTS AND EXPENSE

                  	
                    70

                  
	
                    SECTION
                      10.5 BORROWER INDEMNIFICATION

                  	
                    71

                  
	
                    SECTION
                      10.6 PAYMENTS SET ASIDE

                  	
                    72

                  
	
                    SECTION
                      10.7 SUCCESSORS AND ASSIGNS

                  	
                    72

                  
	
                    SECTION
                      10.8 ASSIGNMENTS, PARTICIPATIONS, ETC

                  	
                    72

                  
	
                    SECTION
                      10.9 SET-OFF

                  	
                    74

                  
	
                    SECTION
                      10.10 NOTIFICATION OF ADDRESSES, LENDING OFFICES, ETC.

                  	
                    74

                  
	
                    SECTION
                      10.11 COUNTERPARTS

                  	
                    75

                  
	
                    SECTION
                      10.12 SEVERABILITY

                  	
                    75

                  
	
                    SECTION
                      10.13 THIRD PARTY BENEFICIARIES

                  	
                    75

                  
	
                    SECTION
                      10.14 GOVERNING LAW AND JURISDICTION

                  	
                    75

                  
	
                    SECTION
                      10.15 WAIVER OF JURY TRIAL

                  	
                    77

                  
	
                    SECTION
                      10.16 JUDGMENT

                  	
                    77

                  
	
                    SECTION
                      10.17 ENTIRE AGREEMENT

                  	
                    78

                  
	
                    SECTION
                      10.18 USE OF NAMES AND MARKS

                  	
                    78

                  
	
                    SECTION
                      10.19 USE OF ENGLISH LANGUAGE

                  	
                    78

                  
	
                    SECTION
                      10.20 NO PARTNERSHIP, ETC.

                  	
                    78

                  
	
                    SECTION
                      10.21 CONFIDENTIALITY.

                  	
                    79

                  

          

        

        

        

        
          
            
               

            

            
              -iii-

              
                

              

            

            
               

            

          

        

        
 

      

    

    SCHEDULES

     

    

      
        
          	
                  SCHEDULE
                    2.1

                	
                  Commitments
                    and Pro Rata Shares

                
	
                  SCHEDULE
                    4.1(l)

                	
                  Existing
                    Liens and Release Documentation

                
	
                  SCHEDULE
                    4.1(m)

                	
                  Acquisition
                    Documents

                
	
                  SCHEDULE
                    5.1(b)

                	
                  Governmental
                    Approvals Required for Financing

                
	
                  SCHEDULE
                    5.1(c)

                	
                  Indebtedness
                    and Contingent Obligations

                
	
                  SCHEDULE
                    5.1(f)

                	
                  Equity
                    Investments

                
	
                  SCHEDULE
                    5.1(i)

                	
                  Governmental
                    Approvals

                
	
                  SCHEDULE
                    5.1(l)

                	
                  Legal
                    Proceedings

                
	
                  SCHEDULE
                    6.1(k)

                	
                  Material
                    Concessions

                
	
                  SCHEDULE
                    6.2(a)(vii)

                	
                  Continuing
                    Existing Liens

                
	
                  SCHEDULE
                    10.2

                	
                  Lending
                    Offices; Addresses for
                    Notices

                

        

      

    EXHIBITS

     

    

      
        
          	
                  EXHIBIT
                    A-1

                	
                  Form
                    of Note for LIBOR Loans

                
	
                  EXHIBIT
                    A-2

                	
                  Form
                    of Note for Base Rate Loans

                
	
                  EXHIBIT
                    B

                	
                  Form
                    of Notice of Borrowing

                
	
                  EXHIBIT
                    C

                	
                  Form
                    of Assignment Agreement

                
	
                  EXHIBIT
                    D

                	
                  Form
                    of Subsidiary Joinder Agreement

                
	
                  EXHIBIT
                    E

                	
                  Forms
                    of Opinions

                

        

      

    

    

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    This
      CREDIT AGREEMENT is entered into as of November 30,
      2006 (this “Agreement”) among: (a) AXTEL, S.A.B. DE C.V., a
      Mexican sociedad anónima bursátil de capital variable (the
“Borrower”), (b) AVANTEL, S. DE R.L. DE C.V., a Mexican
sociedad de responsabilidad limitada de capital variable
      (“Avantel”), (c) OTHER SUBSIDIARIES OF THE BORROWER, as
      Guarantors, (d) VARIOUS FINANCIAL INSTITUTIONS, as lenders (the
“Lenders”), and (e) CREDIT SUISSE, ACTING THROUGH ITS CAYMAN
      ISLANDS BRANCH, as the Administrative Agent (in such capacity, the
“Administrative Agent”).

     

    WHEREAS,
      simultaneously with the funding under this Agreement, the Borrower is acquiring
      (the “Acquisition”) all of the Capital Stock (defined below) in Avantel
      and substantially all of the assets and all of the Capital Stock of Avantel
      Infraestructura, S. de R.L. de C.V., a Mexican sociedad de
      responsabilidad limitada de capital variable (“Avantel
      Infraestructura”), pursuant to the acquisition agreements described on
Schedule 4.1(m), and

     

    WHEREAS,
      the Borrower desires to finance in part the Acquisition by entering into the
      transactions provided for herein, and the other parties hereto desire to
      participate in such transactions in the manner described herein.

     

    NOW,
      THEREFORE, in consideration of the mutual agreements, provisions
      and covenants contained herein, the parties agree as follows:

     

     

    ARTICLE
      I

    DEFINITIONS

     

    SECTION
      1.1 Certain Defined Terms. As used in this
      Agreement, the following terms shall have the following meanings:

     

    “Acquisition”
      shall have the meaning set forth in the recitals.

     

    “Acquisition
      Documentation” shall have the meaning set forth in Section
      4.1(m).

     

    “Additional
      Amounts” shall have the meaning set forth in
Section 3.1(b)(i).

     

    “Administrative
      Agent” shall have the meaning set forth in the preamble.

     

    “Administrative
      Agent’s Payment Office” shall mean, with respect to payment in Dollars, the
      address for such payments to the Administrative Agent set forth on
Schedule 10.2 or such other address as the Administrative Agent may
      specify from time to time to the other parties hereto.

     

    “Affected
      Lender” shall have the meaning set forth in
Section 3.7.

     

    “Affiliate”
      shall mean, as to any Person, any other Person who is directly or indirectly
      Controlled by, under common Control with or Controls such Person.

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    

    “Agent-Related
      Persons” shall mean the Administrative Agent, any successor thereto in such
      capacity hereunder and the Lead Arranger, together with their respective
      Affiliates or in their other capacities, and the officers, directors, employees,
      counsel, agents and attorneys-in-fact of any such Person(s).

     

    “Agreement”
      shall have the meaning set forth in the preamble.

     

    “Applicable
      Base Rate Margin” shall mean: (a) for the period from and including the
      Closing Date to and including May 31, 2007, 0.25% per annum, (b) for
      the period from and including June 1, 2007 to and including November 30, 2007,
      0.75% per annum, and (c) thereafter, 1.75% per
      annum.

     

    “Applicable
      Law” shall mean any applicable statute, law, regulation, ordinance, rule,
      judgment, rule of common law, order, decree, approval (including any
      Governmental Approval), concession, grant, franchise, license, agreement,
      directive, guideline, policy, requirement or other governmental restriction
      or
      any similar form of decision of, or determination by (or any interpretation
      or
      administration of any of the foregoing by), any Governmental Authority, whether
      in effect as of the Closing Date or thereafter (including any Environmental
      Law).

     

    “Applicable
      Margin” shall mean: (a) for the period from and including the Closing Date
      to and including May 31, 2007, 1.25% per annum, (b) for the period from
      and including June 1, 2007 to and including November 30, 2007, 1.75% per
      annum, and (c) thereafter, 2.75% per annum.

     

    “Assignee”
      shall have the meaning set forth in Section 10.8(a).

     

    “Assignment
      Agreement” shall have the meaning set forth in
Section 10.8(a).

     

    “Attorney
      Costs” shall mean all fees and disbursements of any law firm or other
      external counsel (but of not more than one firm or other external counsel for
      all Financing Parties per jurisdiction at any time) or notarial
      fees.

     

    “Auditors”
      shall mean KPMG Cardenas Dosal, S.C. or a replacement thereof appointed by
      the
      Borrower and approved by the Required Lenders; it being agreed that no
      such approval shall be required if such replacement is a member company or
      Affiliate of any one of the “Big Four” accounting firms.

     

    “Authorized
      Officer” shall mean, with respect to any Person, its Chief Executive
      Officer (Director General), Chief Financial Officer (Director de
      Finanzas), Treasurer (Tesorero), Comptroller (Contralor)
      or any more senior officer.

     

    “Avantel”
      shall have the meaning set forth in the preamble.

     

    “Avantel
      Companies” shall mean Avantel, Avantel Infraestructura and their
      Subsidiaries as of the Closing Date.

     

    

    
      
        
          
          

        

        
          Bredie
            Credit Agreement 2

          
            

          

        

        
          
          

        

      

    

    

    

    “Avantel
      Infraestructura” shall mean Avantel Infraestructura, S. de R.L. de C.V., a
      Mexican sociedad de responsabilidad limitada de capital
      variable.

     

    “Avantel/Telmex
      IRU” shall mean the indefeasible right to use  certain
      telecommunications capacity pursuant to an agreement between Avantel and Telmex
      originally entered into on January 2, 2006.

     

    “Base
      Rate” shall mean, for any day, the higher of: (a) 0.50% per annum
      above the latest Federal Funds Rate and (b) the rate of interest in effect
      for
      such day as publicly announced from time to time by the Administrative Agent
      in
      the city in which the Administrative Agent’s Payment Office is located as its
“reference rate.” The “reference rate” is a rate set based upon various factors,
      including the Administrative Agent’s costs and desired return, general economic
      conditions and other factors, and is used as a reference point for pricing
      some
      loans, which may be priced at, above or below such announced rate. Any change
      in
      the “reference rate” (occasionally referred to as the “prime rate”) announced by
      the Administrative Agent shall take effect at the opening of business on the
      day
      specified in the public announcement of such change.

     

    “Base
      Rate Loan” shall mean a Loan that bears interest based upon the Base
      Rate.

     

    “Borrower”
      shall have the meaning set forth in the preamble.

     

    “Business”
      shall mean any business in which the Borrower or any of its Subsidiaries was
      engaged on the Closing Date and any business related, ancillary or complementary
      to such business.

     

    “Business
      Day” shall mean any day other than a Saturday or Sunday and: (a) other than
      any other day on which commercial banks in New York City, New York, the city
      in
      which the Administrative Agent’s Payment Office is located (only with respect to
      the determination of the Base Rate) or México City, México are authorized or
      required by law to close, and (b) if the applicable Business Day relates to
      the
      determination of LIBOR, shall mean a day on which dealings are carried on in
      the
      London interbank eurodollar market.

     

    “Capital
      Adequacy Regulation” shall mean any guideline, request or directive of any
      central bank or other Governmental Authority, or any other law, rule or
      regulation, whether or not having the force of law, in each case regarding
      capital adequacy of any bank (or similar entity) or of any Person controlling
      a
      bank (or similar entity).

     

    “Capitalized
      Lease Obligations” shall mean, with respect to any Person, all outstanding
      obligations of such Person in respect of Capital Leases, taken at the
      capitalized amount thereof accounted for as indebtedness in accordance with
      GAAP.

     

    “Capital
      Lease” shall mean any lease of any Property (whether real, personal or
      mixed) by any Person as lessee that, in conformity with GAAP, is required to
      be
      accounted for as a capital lease on the balance sheet of such
      Person.

     

    

    
      
        
          
          

        

        
          Bredie
            Credit Agreement 3

          
            

          

        

        
          
          

        

      

    

    

    

    “Capital
      Stock” shall mean any capital stock (including preferred stock) issued by a
      corporation or similar ownership interests (including partes sociales
      and partnership interests) in any Person.

     

    “Change
      of Control” shall mean the occurrence of any of the following
      events:

     

    (a)
      if
      any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange
      Act), other than one or more Permitted Holders, is or becomes the “beneficial
      owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that
      for purposes of this clause (a): (i) such person shall be deemed to have
“beneficial ownership” of all shares that such person has the right to acquire,
      whether such right is exercisable immediately or only after the passage of
      time,
      and (ii) such person shall not be deemed to have “beneficial ownership” of any
      shares solely as a result of a voting or similar agreement entered into in
      connection with a merger agreement or asset sale agreement), directly or
      indirectly, of more than 35% of the total voting power of the Voting Stock
      of
      the Borrower; provided, however, that Permitted Holders
      beneficially own (as defined in Rules 13d-3 and 13d-5 under the Exchange Act),
      directly or indirectly, in the aggregate a lesser percentage of the total voting
      power of the Voting Stock of the Borrower than such other person and do not
      have
      the right or ability by voting power, contract or otherwise to elect or
      designate for election a majority of the Board of Directors of the Borrower
      (for
      the purposes of this clause (a), such other person shall be deemed to
      beneficially own any Voting Stock of a specified person held by a parent entity,
      if such other person is the beneficial owner, directly or indirectly, of more
      than 35% of the voting power of the Voting Stock of such parent entity and
      the
      Permitted Holders beneficially own, directly or indirectly, in the aggregate
      a
      lesser percentage of the voting power of the Voting Stock of such parent entity
      and do not have the right or ability by voting power, contract or otherwise
      to
      elect or designate for election a majority of the board of directors of such
      parent entity),

     

    (b)
      individuals who on the Closing Date constituted the Board of Directors of the
      Borrower (together with any new directors whose election by such Board of
      Directors or whose appointment or nomination for election by the shareholders
      of
      the Borrower was approved by a vote of a majority of the directors of the
      Borrower then still in office who were either directors on the Closing Date
      or
      whose appointment, election or nomination for election was approved directly
      or
      indirectly by the Permitted Holders or by directors previously so approved)
      cease for any reason to constitute a majority of the Board of Directors of
      the
      Borrower then in office,

     

    (c)
      the
      adoption of a plan relating to the liquidation or dissolution of the Borrower;
      provided, however, that this clause (c) will not be
      applicable to: (i) a Guarantor consolidating with, merging into or transferring
      all or part of its Properties to the Borrower or (ii) the Borrower merging
      with
      an Affiliate of the Borrower solely for the purpose and with the sole effect
      of
      reincorporating the Borrower in another jurisdiction, or

     

    

    
      
        
          
          

        

        
          Bredie
            Credit Agreement 4

          
            

          

        

        
          
          

        

      

    

    

    

    (d)
      the
      merger or consolidation of the Borrower with or into another Person or the
      merger of another Person with or into the Borrower, or the sale of all or
      substantially all the Property of the Borrower (determined on a consolidated
      basis) to another Person other than a transaction in which holders of securities
      that directly or indirectly represented 100% of the Voting Stock of the Borrower
      immediately prior to such transaction (or other securities into which such
      securities are converted as part of such merger or consolidation transaction)
      own directly or indirectly at least a majority of the voting power of the Voting
      Stock of the transferee Person or the surviving Person in such merger or
      consolidation transaction immediately after such transaction.

     

    “Closing
      Date” shall mean December 4, 2006.

     

    “Code”
      shall mean the Internal Revenue Code of 1986 of the United States and the
      regulations promulgated and rulings issued thereunder.

     

    “COFETEL”
      shall mean the Comisión Federal de Telecomunicaciones, an agency of the
      SCT.

     

    “Commitments”
      shall mean, with respect to each Lender, the Dollar amount set forth opposite
      its name on Schedule 2.1 under the heading
“Commitments.”

     

    “Communications”
      shall have the meaning set forth in Section 10.2(d).

     

    “Consolidated
      Basis” shall mean, initially, the combined Financial Statements of the
      Borrower and its Subsidiaries (including the Avantel Companies) and for periods
      in which the Avantel Companies are consolidated with the Borrower, the
      consolidated Financial Statements of the Borrower and its Subsidiaries, in
      each
      case, where applicable, excluding the Unrestricted Subsidiaries but including
      Immaterial Subsidiaries, even if not Guarantors.

     

    “Consolidated
      EBITDA” shall mean, for any period (on a Consolidated Basis for the
      Borrower and its Subsidiaries determined in accordance with GAAP): (a) the
      income from operations for such period plus (b) depreciation of fixed
      or capital assets and amortization of intangibles and leasehold improvements
      for
      such period included in the calculation of income from operations.

     

    “Consolidated
      EBITDA to Interest Ratio” shall mean, at any date of determination, the
      ratio (expressed as a decimal) of: (a) Consolidated EBITDA (determined excluding
      the Unrestricted Subsidiaries but including the Immaterial Subsidiaries even
      if
      not Guarantors) divided by (b) the Consolidated Interest Expense, in
      each case determined for the four most recent fiscal quarters ending on or
      before such date (as applicable, determined on a pro forma basis as if
      the Acquisition had occurred at the beginning of such four fiscal quarter
      period).

     

    “Consolidated
      Indebtedness” shall mean, as of any date of determination, all Indebtedness
      (including the Loans) of the Borrower and its Restricted Subsidiaries determined
      on a Consolidated Basis.

     

    

    
      
        
          
          

        

        
          Bredie
            Credit Agreement 5

          
            

          

        

        
          
          

        

      

    

    

    

    “Consolidated
      Interest Expense” shall mean, for any period, all interest, fees, premia
      and similar payments payable by the Borrower and its Restricted Subsidiaries
      with respect to Indebtedness (including the Loans) and/or Contingent Obligations
      during such period, determined on a Consolidated Basis, in accordance with
      GAAP,
      and when determined for a future period, assuming no unscheduled reduction
      in
      principal, increase in Indebtedness or Contingent Obligations or change in
      applicable interest rates.

     

    “Consolidated
      Senior Indebtedness” shall mean Consolidated Indebtedness excluding
      Permitted Subordinated Indebtedness.

     

    “Consolidated
      Senior Indebtedness to EBITDA Ratio” shall mean, at any date of
      determination, the ratio (expressed as a decimal) of: (a) Consolidated Senior
      Indebtedness as at such date divided by (b) Consolidated EBITDA
      (determined excluding the Unrestricted Subsidiaries but including the Immaterial
      Subsidiaries even if not Guarantors) for the four most recent fiscal quarters
      ending on or before such date (as applicable, determined on a pro forma
      basis as if the Acquisition had occurred at the beginning of such four fiscal
      quarter period).

     

    “Consolidated
      Total Indebtedness to EBITDA Ratio” shall mean, at any date of
      determination, the ratio (expressed as a decimal) of: (a) Consolidated
      Indebtedness as at such date divided by (b) Consolidated EBITDA
      (determined excluding the Unrestricted Subsidiaries but including the Immaterial
      Subsidiaries even if not Guarantors) for the four most recent fiscal quarters
      ending on or before such date (as applicable, determined on a pro forma
      basis as if the Acquisition had occurred at the beginning of such four fiscal
      quarter period).

     

    “Contingent
      Obligation” shall mean (without duplication): (a) the face amount of all
      letters of credit, performance bonds and similar instruments, including
fianzas (excluding any such amounts for which a reimbursement
      obligation exists and any such instrument to the extent it secures the payment
      of Indebtedness), (b) a guarantee, an indemnity obligation in respect of a
      guarantee or performance bond (including a fianza), an endorsement or
      an aval, (c) all liabilities secured by any Lien on any Property of the
      applicable Person, whether or not such liabilities have been assumed by such
      Person, (d) a contingent agreement to purchase or to furnish funds for the
      payment or maintenance of, or otherwise to be or become contingently liable
      under or with respect to, any Indebtedness, other obligations, net worth,
      working capital or earnings of any Person, (e) a guarantee of the payment of
      dividends or other distributions upon the Capital Stock of any Person, (f)
      an
      agreement to purchase, sell or lease (as lessee or lessor) Property or services,
      primarily in each case for the purpose of enabling a debtor to make payment
      of
      its obligations, or (g) an agreement to assure a creditor against loss; in
      each case including causing a bank or other Person to issue a letter of
      credit or other similar instrument for the benefit of any Person, but excluding
      endorsement for collection or deposit in the ordinary course of business. The
      amount of any Contingent Obligation of any Person shall be deemed to be an
      amount equal to the stated or determinable amount of the primary obligation
      in
      respect of which such Contingent Obligation is made or, if not stated or
      determinable, the maximum reasonably anticipated liability in respect thereof
      (assuming such Person is required to perform thereunder) as determined in good
      faith.

     

    

    
      
        
          
          

        

        
          Bredie
            Credit Agreement 6

          
            

          

        

        
          
          

        

      

    

    

    

    “Control”
      of any Person shall mean possession, directly or indirectly, of the power to
      direct or cause the direction of the management and policies of such Person,
      whether through the ownership of Voting Stock, by contract or
      otherwise.

     

    “Covered
      Taxes” shall have the meaning set forth in
Section 3.1(a).

     

    “Credit
      Party” shall mean the Borrower or a Guarantor.

     

    “Credit
      Party Affiliate” shall mean an Affiliate of a Credit Party.

     

    “Customer
      Premises Equipment” shall mean equipment owned by the Borrower or a
      Restricted Subsidiary that is either leased or sold on an installment basis
      to a
      customer of the Borrower or such Restricted Subsidiary in connection with the
      provision of telecommunications services to such customer by the Borrower or
      a
      Restricted Subsidiary.

     

    “Default”
      shall have the meaning set forth in Section 7.1.

     

    “Default
      Rate” shall mean, at any time of determination: (a) with respect to Loans,
      the interest rate(s) then applicable to such Loans plus 2% per
      annum, and (b) with respect to other Obligations, the Base Rate
plus the Applicable Base Rate Margin plus 2% per
      annum.

     

    “Disqualified
      Stock” shall mean, with respect to the Borrower, any Capital Stock that by
      its terms (or by the terms of any security into which it is convertible or
      for
      which it is exchangeable at the option of the holder) or upon the happening
      of
      any event:

     

    (a)  matures
      or is mandatorily redeemable (other than redeemable only for Capital Stock
      of
      the Borrower that is not itself Disqualified Stock) pursuant to a sinking fund
      obligation or otherwise,

     

    (b)  is
      convertible or exchangeable at the option of the holder for Indebtedness or
      Disqualified Stock, or

     

    (c)  is
      mandatorily redeemable or must be purchased upon the occurrence of certain
      events or otherwise, in whole or in part,

     

    in
      each
      case on or prior to the first anniversary of the Maturity Date;
provided, however, that any Capital Stock that would not
      constitute Disqualified Stock but for provisions thereof giving holders thereof
      the right to require such Person to purchase or redeem such Capital Stock upon
      the occurrence of an “asset sale” or “change of control” occurring prior to the
      first anniversary of the Maturity Date shall not constitute Disqualified Stock
      if: (i) the “asset sale” or “change of control” provisions applicable to such
      Capital Stock are not more favorable to the holders of such Capital Stock than
      the Default provisions for the Lenders in respect of Section 2.4(b) and
Section 7.1(k) and (ii) any such requirement only becomes operative after
      the repayment in full of the Obligations.

     

    

    
      
        
          
          

        

        
          Bredie
            Credit Agreement 7

          
            

          

        

        
          
          

        

      

    

    

    

    The
      amount of any Disqualified Stock that does not have a fixed redemption,
      repayment or repurchase price shall be calculated in accordance with the terms
      of such Disqualified Stock as if such Disqualified Stock were redeemed, repaid
      or repurchased on any date on which the amount of such Disqualified Stock is
      to
      be determined pursuant to this Agreement; provided, however,
      that if such Disqualified Stock could not be required to be redeemed, repaid
      or
      repurchased at the time of such determination, then the redemption, repayment
      or
      repurchase price shall be the book value of such Disqualified Stock as reflected
      in the most recent Financial Statements of such Person.

     

    “Dollars”
      or “$” or “US$” shall mean the lawful currency of the United
      States of America.

     

    “Eligible
      Assignee” shall mean: (a) a Mexican Financial Institution, (b) an Export
      Credit Agency or (c) a Foreign Financial Institution resident in a jurisdiction
      that is party to a treaty with México for the avoidance of double taxation
      entitled to the benefits of such treaty and to the reduced rate established
      in
      such treaty for the type of interest granted therein; provided that no
      Credit Party or Subsidiary may be an Eligible Assignee.

     

    “Environmental
      Law” shall mean any federal, national, multilateral, state, local or other
      law, statute, common law duty, rule, regulation, ordinance or code, together
      with any administrative order, directed duty, request, license, authorization
      and permit of, and agreement with, any Governmental Authority, in each case
      relating to environmental, health, safety and/or land use matters.

     

    “ERISA”
      shall mean the Employee Retirement Income Security Act of 1974 of the United
      States and the regulations promulgated and rulings issued
      thereunder.

     

    “ERISA
      Affiliate” shall mean each person (as defined in Section 3(9) of
      ERISA) who together with the Borrower or any Subsidiary would be deemed to
      be a
“single employer:” (a) within the meaning of Section 414(b), (c), (m) or
      (o) of the Code or (b) as a result of the Borrower or any Subsidiary being
      or
      having been a general partner of such person.

     

    “ERISA
      Plan” shall mean: (a) any pension plan (as defined in Section 3(2) of
      ERISA), that is maintained or contributed to by (or to which there is an
      obligation to contribute of) any Credit Party or an ERISA Affiliate and (b)
      each
      such plan for the five year period after the latest date on which any Credit
      Party or an ERISA Affiliate maintained, contributed to or had an obligation
      to
      contribute to such plan.

     

    “Exchange
      Rate” shall mean, on any date of determination, the Peso/Dollar exchange
      rate published by Banco de México in the Federal Official Gazette
      (Diario Oficial de la Federación) as the rate “para solventar
      obligaciones denominadas en moneda extranjera pagaderas en la República
      Mexicana” on such date; provided that if Banco de México
ceases to publish such exchange rate or a substitute
      rate therefor, then
      the Exchange Rate shall be calculated by using the Peso/Dollar spot exchange
      rate (if any) published by Banamex as of the close of business on the preceding
      Mexican Business Day.

     

    

    
      
        
          
          

        

        
          Bredie
            Credit Agreement 8

          
            

          

        

        
          
          

        

      

    

    

    

    “Excluded
      Taxes” shall have the meaning set forth in Section
      3.1(a).

     

    “Existing
      Credit Agreement” shall mean the Credit Agreement, dated as of
      June 30, 2005, among the Avantel Companies, various lenders, ABN AMRO Bank
      N.V., as administrative agent, U.S. Bank National Association, as collateral
      agent, and certain other parties.

     

    “Existing
      Liens” shall mean the Liens on the Properties securing the Existing Credit
      Agreement, as described in Schedule 4.1(l).

     

    “Export
      Credit Agency” shall mean an official non-Mexican financial institution for
      the promotion of exports registered in Book I (Libro I) Section 5
      (Sección 5) of the Foreign Banks, Financial Entities, Pension and
      Retirement Funds and Investment Funds Registry (Registro de Bancos,
      Entidades de Financiamiento, Fondos de Pensiones y Jubilaciones y Fondos de
      Inversión del Extranjero) maintained by Hacienda for purposes of the Rule
      3.21.2 of the Resolución Miscelánea Fiscal for the year 2006 and
      Article 196-II of the Mexican Income Tax Law (or any successor
      provision).

     

    “Expropriation
      Event” shall mean: (a) any condemnation, nationalization, rescate,
      temporary seizure, seizure, expropriation or similar act by (or on behalf of)
      a
      Governmental Authority of all or a material part of the Network and/or the
      other
      Property of the Borrower or any Subsidiary and/or of its Capital Stock, (b)
      any
      assumption by (or on behalf of) a Governmental Authority of control of all
      or a
      material part of the Property or business operations of the Borrower or any
      Subsidiary and/or of its Capital Stock, (c) any taking of any action by (or
      on
      behalf of) a Governmental Authority for the dissolution or disestablishment
      of
      the Borrower or any Subsidiary, (d) any taking of any action by (or on behalf
      of) a Governmental Authority that would prevent the Borrower and its
      Subsidiaries from carrying on their business or operations or a substantial
      part
      thereof or (e) any other act or series of acts attributable to a Governmental
      Authority; that in respect of the foregoing clauses (a) through
(e) individually or in the aggregate, in the reasonable judgment
      of the
      Required Lenders, has resulted in, or could reasonably be expected to result
      in,
      a Material Adverse Change.

     

    “Federal
      Funds Rate” shall mean, for any day, the rate set forth in the weekly
      statistical release designated as H.15(519), or any successor publication,
      published by the Federal Reserve Bank of New York on the preceding New York
      Business Day opposite the caption “Federal Funds (Effective)”; or, if for any
      relevant day such rate is not so published on any such preceding New York
      Business Day, then the rate for such day shall be the arithmetic mean as
      determined by the Administrative Agent of the rates for the last transaction
      in
      overnight Federal funds arranged before 9:00 a.m. (New York City time) on
      that day by each of three leading brokers of Federal funds transactions in
      New
      York City selected by the Administrative Agent.

     

    “Federal
      Reserve Board” shall mean the Board of Governors of the Federal Reserve
      System of the United States and any Governmental Authority succeeding to any
      of
      its functions.

     

    “Federal
      Telecommunications Law” shall mean the Mexican Federal Telecommunications
      Law (Ley Federal de Telecomunicaciones), adopted in June
      1995.

     

    

    
      
        
          
          

        

        
          Bredie
            Credit Agreement 9

          
            

          

        

        
          
          

        

      

    

    

    

    “Financial
      Statements” shall mean, with respect to any Person, such Person’s quarterly
      or annual balance sheet and statements of income, stockholders’ equity and cash
      flows for such fiscal period and for the period from the beginning of the
      then-current Fiscal Year to the end of such period, together with all notes
      thereto and with comparable figures for the corresponding period of the previous
      Fiscal Year. In the Credit Parties’ case, unless otherwise specified, all such
      Financial Statements shall be prepared on a Consolidated Basis.

     

    “Financing
      Documents” shall mean this Agreement, the Notes and the fee letter
      described in Section 2.7; it being understood that such fee
      letter is confidential and shall not be distributed to any Person other than
      the
      parties thereto and their representatives or as otherwise permitted under such
      fee letter.

     

    “Financing
      Parties” shall mean the Administrative Agent and the Lenders.

     

    “Fiscal
      Year” shall mean a calendar year.

     

    “Foreign
      Financial Institution” shall mean a bank
      or
      financial institution which is (or its main office is, if lending through a
      branch or agency) registered in Book I (Libro I) Section 1 (Sección 1)
      of the Foreign Banks, Financial Entities, Pension and Retirement Funds and
      Investment Funds Registry (Registro de Bancos, Entidades de Financiamiento,
      Fondos de Pensiones y Jubilaciones y Fondos de Inversión del Extranjero)
      maintained by Hacienda for purposes of Rule 3.21.2 of the Resolución
      Miscelánea Fiscal for the year 2006 and Article 195-I of the Mexican Income
      Tax Law (or any successor provisions).

     

    “Foreign
      Investment Law” shall mean the Mexican Foreign Investment Law (Ley de
      Inversión Extranjera).

     

    “GAAP”
      shall mean generally accepted accounting principles in Mexico in effect from
      time to time, applied on a consistent basis both as to classification of items
      and amounts.

     

    “Governmental
      Approval” shall mean the Material Concessions and any other action, order,
      authorization, consent, approval, right, franchise, license, lease, ruling,
      permit, tariff, rate, certification, exemption, filing or registration by or
      with any Governmental Authority.

     

    “Governmental
      Authority” shall mean any government, governmental department, commission,
      board, bureau, agency, regulatory authority, instrumentality, judicial or
      administrative body, domestic, foreign or multilateral, federal, state, local
      or
      otherwise, having jurisdiction over the matter(s) in question.

     

    “Guarantors”
      shall mean the Subsidiaries of the Borrower (other than the Immaterial
      Subsidiaries and the Unrestricted Subsidiaries).

     

    “Hacienda”
      shall mean the Ministry of Finance and Public Credit (Secretaría de Hacienda
      y Crédito Público), a ministry of the Mexican government.

     

    “Hedging
      Agreement” shall mean any agreement, whether or not in writing, relating to
      any transaction that is a rate swap, basis swap, forward rate transaction,
      commodity swap,

     

    

    
      
        
          
          

        

        
          Bredie
            Credit Agreement 10

          
            

          

        

        
          
          

        

      

    

    

    commodity
      option, equity or equity index swap or option, bond, note or bill option,
      interest rate option, forward foreign exchange transaction, cap, collar or
      floor
      transaction, currency swap, cross-currency rate swap, swaption, currency option
      or any other, similar transaction (including any option to enter into any of
      the
      foregoing) or any combination of the foregoing, and, unless the context
      otherwise clearly requires, any master agreement relating to or governing any
      or
      all of the foregoing.

     

    “Immaterial
      Subsidiary” shall mean at any time any Subsidiary of the Borrower that
      meets the following criteria at such time: (a) such Subsidiary is Telecom
      Networks, Inc., Instalaciones y Contrataciones S.A. de C.V., Impulsora e
      Inmobiliaria Regional S.A. de C.V., Servicios Axtel S.A. de C.V., Conectividad
      Inalámbrica 7GHZ, S. de R.L., Avantel Recursos S.A. de C.V., Avantel
      Telecomunicaciones S.A. de C.V., Avantel Equipos S.A. de C.V., Avantel Servicios
      S.A. de C.V. or any other Subsidiary of the Borrower designated in writing
      by
      the Borrower to the Administrative Agent as an Immaterial Subsidiary, (b) at
      all
      times such Subsidiary’s portion of Consolidated EBITDA is less than 5% of the
      Consolidated EBITDA of the Borrower and its Subsidiaries for the four fiscal
      quarter period most recently ended, (c) such Subsidiary holds less than 5%
      of
      the consolidated assets of the Borrower and its Subsidiaries on a Consolidated
      Basis, (d) the loss of the Properties held by such Subsidiary, individually
      or
      in the aggregate, could not reasonably be expected to result in a Material
      Adverse Change, (e) such Subsidiary does not hold a Material Concession, and
      (f)
      the designation of such Subsidiary as an Immaterial Subsidiary has not been
      withdrawn by the Borrower in accordance with Section
      6.2(j)(iii).  The Immaterial Subsidiaries are Restricted
      Subsidiaries but not Guarantors.

     

    “Indebtedness”
      shall mean, for any Person (without duplication):

     

    (a)
      indebtedness for borrowed money,

     

    (b)
      obligations evidenced by bonds, debentures, notes, commercial paper, bills
      of
      exchange or other instruments (other than rental obligations under operating
      leases, whether or not evidenced by notes),

     

    (c)
      obligations to pay the deferred purchase price of Property or services
      (excluding trade accounts not in default and payable in the ordinary course
      of
      business within 180 days of the furnishing of the goods or
      services),

     

    (d)
      reimbursement obligations of such Person that are due and payable in respect
      of
      letters of credit, performance bonds or similar instruments, including
fianzas,

     

    (e)
      all
      liabilities secured by any Lien on any Property of such Person, whether or
      not
      such liabilities have been assumed by such Person,

     

    (f)
      Capitalized Lease Obligations (other than the Avantel/Telmex IRU),

     

    (g)
      net
      obligations in respect of any interest rate protection agreement or any currency
      swap, cap or collar agreement or similar arrangement entered into by such Person
      providing for the transfer or mitigation of interest rate, currency or other
      risks either generally or under specific contingencies (but without regard
      to
      any notional principal amount relating thereto), and

     

    

    
      
        
          
          

        

        
          Bredie
            Credit Agreement 11

          
            

          

        

        
          
          

        

      

    

    

    

    (h)
      Contingent Obligations relating to any of the foregoing
      Indebtedness.

     

    “Indemnified
      Liabilities” shall have the meaning set forth in
Section 10.5.

     

    “Indemnified
      Person” shall have the meaning set forth in
Section 10.5.

     

    “Information”
      shall have the meaning set forth in Section 10.21.

     

    “Information
      Memorandum” shall mean the Confidential Arranger Package, dated November
      2006, prepared by the Credit Parties in connection with the syndication of
      the
      Loans.

     

    “Interest
      Period” shall mean with respect to any Loan: (a) initially, the period from
      the Closing Date to December 21, 2006, and (b) thereafter,
      the period from the end of the preceding Interest Period to the corresponding
      Business Day of the month one or three months thereafter, as selected by the
      Borrower; provided that no Interest Period may end after the Maturity
      Date.

     

    “Investment”
      in any Person shall mean (without duplication): (a) the acquisition (whether
      for
      cash, securities, other Property, services or otherwise) or holding of Capital
      Stock or Indebtedness of such Person, or any agreement to make any such
      acquisition or to make any capital contribution to such Person, and (b) the
      making of any deposit with, or provision of Indebtedness to, such
      Person.

     

    “Judgment
      Currency” shall have the meaning set forth in
Section 10.16(a).

     

    “Judgment
      Currency Conversion Date” shall have the meaning set forth in
Section 10.16(a).

     

    “Lead
      Arranger” shall mean Credit Suisse, acting through its Cayman Islands
      Branch.

     

    “Lenders”
      shall have the meaning set forth in the preamble.

     

    “Lending
      Office” shall mean, as to any Lender, the office(s) of such Lender
      specified as its “Lending Office” on Schedule 10.2 or such other
      office(s) as such Lender from time to time may notify the Borrower and the
      Administrative Agent in writing.

     

    “LIBOR”
      applicable to any Interest Period shall mean the rate per annum
determined by the Administrative Agent at approximately 11:00 a.m.
      (London time) on the date that is two Business Days prior to the beginning
      of
      the relevant Interest Period by reference to the British Bankers’ Association
      Interest Settlement Rates for deposits in Dollars (as set forth by the Bloomberg
      Information Service or any successor thereto or any other service selected
      by
      the Administrative Agent which has been nominated by the British Bankers’
Association as an authorized information vendor for the purpose of displaying
      such rates) for a period equal to such Interest Period; provided that,
      to the extent that an interest rate is not ascertainable pursuant to the
      foregoing provisions of this definition, the “LIBOR” shall be the interest rate
per annum determined by the Administrative Agent to be the average of
      the rates per annum at which deposits in Dollars are offered for such
      relevant Interest Period to major banks in the London interbank market in
      London, England by the Administrative Agent at approximately 11:00 a.m.
(London
      time) on the date that is two Business Days prior to the beginning of such
      Interest Period.

     

    

    
      
        
          
          

        

        
          Bredie
            Credit Agreement 12

          
            

          

        

        
          
          

        

      

    

    

     

    “LIBOR
      (Reserve Adjusted)” shall mean, with respect to a LIBOR Loan for the
      relevant Interest Period, the quotient (rounded upwards, if necessary, to the
      nearest 1/100th of 1%) of: (a) LIBOR for such Interest Period divided
      by (b) one minus the Reserve Requirement applicable to such
      Interest Period.

     

    “LIBOR
      Loan” shall mean a Loan that bears interest based upon LIBOR (Reserve
      Adjusted).

     

    “Lien”
      shall mean, with respect to any Property of any Person, any mortgage, deed
      of
      trust, hypothecation, security trust, fiduciary transfer of title, assignment
      by
      way of security, lien, pledge, charge, sale and lease-back arrangement,
      easement, servitude, servidumbre, trust arrangement or security
      interest or encumbrance of any kind in respect of such Property, or any
      preferential arrangement having the practical and/or economic effect of
      constituting a security interest with respect to the payment of any obligation
      with, or from the proceeds of, any Property of any kind (and a Person shall
      be
      deemed to own subject to a Lien any Property that it has acquired or holds
      subject to the interest of a vendor or lessor under any conditional sale
      agreement, Capital Lease or other title retention agreement relating to such
      Property). For the purpose of clarification, a Lien shall include any sales
      (including “true sales”) of Property in connection with any securitization or
      similar transaction.

     

    “Loans”
      shall mean the loans made on the Closing Date by the Lenders to the Borrower
      pursuant to Article II.

     

    “Material
      Adverse Change” shall mean: (a) a material adverse change in the
      operations, business and/or condition (financial or otherwise) of the Credit
      Parties taken as a whole since December 31, 2005, or (b) an impairment of
      the ability of the Credit Parties to perform any of their respective material
      obligations under any Financing Document.  For purposes hereof, a
      Material Adverse Change shall not be deemed to have occurred to the extent
      that
      such change with respect to the Credit Parties taken as a whole is as a result
      of a condition or event related solely to the Avantel Companies and such
      condition or event was existing prior to or as of the time of the
      Acquisition.

     

    “Material
      Concession” shall mean the concessions of the Borrower and its Subsidiaries
      listed on Schedule 6.1(k).

     

    “Material
      Document” shall mean the Material Concessions and the Acquisition
      Documentation.

     

    “Material
      Obligations” shall have the meaning set forth in
Section 7.1(b).

     

    “Maturity
      Date” shall mean the Principal Payment Date in May 31, 2008.

     

    “Mexican
      Business Day” shall mean any day other than a Saturday or Sunday and other
      than any other day on which commercial banks in México City, México are
      authorized or required by law to close.

     

    

    
      
        
          
          

        

        
          Bredie
            Credit Agreement 13

          
            

          

        

        
          
          

        

      

    

    

    

    “Mexican
      Financial Institution” shall mean a commercial bank organized under the
      Credit Institutions Law (Ley de Instituciones de Crédito) of
      México.

     

    “México”
      shall mean the United Mexican States.

     

    “Moody’s”
      shall mean Moody’s Investors Service, Inc.

     

    “Net
      Cash Proceeds” shall mean, with respect to any sale, assignment, transfer,
      conveyance, lease or other disposition of any Property by any Person (or any
      issuance of Indebtedness or Capital Stock by any Person), the aggregate amount
      of cash or cash equivalents received by (or on behalf of) such Person in
      connection with such transaction after deducting therefrom: (a) reasonable
      and
      customary brokerage commissions, underwriting fees and discounts, legal fees,
      finder’s fees and other similar fees and commissions payable by such Person in
      connection therewith and (b) the amount of Taxes payable in cash by such Person
      in connection with or as a result of the closing of such
      transaction.

     

    “Net
      Worth” shall mean the consolidated net worth of the Credit Parties,
      determined on a Consolidated Basis.

     

    “Network”
      shall mean the public telecommunications network (red pública de
      telecomunicaciones) (including the fiber optic cable, cable border
      crossings, interconnection points, switching centers and operating and office
      support systems and facilities) of the Credit Parties for the provision of
      telecommunications services (including any special or value-added
      telecommunications services) that the Credit Parties may offer from time to
      time.

     

    “New
      York Business Day” shall mean any day other than a Saturday or Sunday and
      other than any other day on which commercial banks in New York City, New York
      are authorized or required by law to close.

     

    “Non-U.S.
      Pension Plan” shall mean any plan, fund (including any superannuation fund)
      or other similar program established or maintained outside the United States
      of
      America by the Borrower or any Restricted Subsidiary primarily for the benefit
      of employees of the Borrower or any Restricted Subsidiary residing outside
      the
      United States of America, which plan, fund or other similar program provides
      (or
      results in) retirement income, a deferral of income in contemplation of
      retirement or payments to be made upon termination of employment, and which
      plan
      is not subject to ERISA or the Code.

     

    “Note”
      shall mean a non-negotiable promissory note (pagaré no negociable)
      executed by the Borrower (and executed por aval by the Guarantors) in
      favor of a Lender pursuant to Section 2.2, substantially in the form
      of Exhibit A-1 (for LIBOR Loans) or Exhibit A-2 (for
      Base Rate Loans).

     

    “Notice
      of Borrowing” shall mean a notice to the Administrative Agent substantially
      in the form of Exhibit B.

     

    

    
      
        
          
          

        

        
          Bredie
            Credit Agreement 14

          
            

          

        

        
          
          

        

      

    

    

    

    “Notice
      Office” shall mean the office of the Administrative Agent identified on
Schedule 10.2 as its office for notices or such other office as the
      Administrative Agent may specify from time to time to the other parties
      hereto.

     

    “Obligations”
      shall mean all loans, advances, debts, liabilities and other payment obligations
      of every kind and description, howsoever arising, owed by a Credit Party under
      a
      Financing Document (whether or not evidenced by any note or other instrument
      and
      whether or not for the payment of money), direct or indirect, absolute or
      contingent, due or to become due, now existing or hereafter arising, including
      all interest, fees, charges, expenses, Indemnified Liabilities and Attorney
      Costs payable by a Credit Party.

     

    “Ordinary
      Course of Business” shall mean, with respect to any sale, assignment,
      transfer, conveyance, lease or other disposition of any Property
      of  the Borrower or any Restricted Subsidiary, any such transaction
      that is in the ordinary course of business of the Borrower or such Restricted
      Subsidiary and consistent with practices in the Mexican telecommunications
      industry, including: (a) any single transaction (or series of related
      transactions) relating to Property having a book value (under GAAP) of
      $25,000,000 (or its equivalent in any other currency) or less, (b) leases and/or
      sales of Customer Premises Equipment to customers, (c) divestitures of obsolete
      assets and (d) sales or other dispositions of assets for the purpose of
      upgrading or replacing such assets with assets of equal or greater value and
      utility (so long as the replacement of such assets shall be effected
      substantially contemporaneously with such sale or other disposition);
provided that, except for transactions described in
clause (b), any single such transaction (or series of related
      transactions) relating to Property having a book value under GAAP in excess
      of
      $25,000,000 (or its equivalent in any other currency) shall not be considered
      to
      be in the Ordinary Course of Business.

     

    “Organizational
      Documents” shall mean, with regard to any Person: (a) its articles of
      incorporation or other similar document, (b) its estatutos sociales,
      by-laws or other similar document, (c) any certificate of designation or
      instrument relating to the rights of preferred stockholders or other equity
      holders of such Person, and (d) any stockholder rights agreement, registration
      rights agreement or other similar agreement relating to such
      Person.

     

    “Other
      Taxes” shall mean any present or future stamp, court or documentary taxes
      or any other excise or property taxes or charges of a similar nature that are
      levied by any Governmental Authority and that arise from any payment of any
      Obligations or from the execution, delivery, performance, enforcement or
      registration of, or otherwise with respect to, any Financing
      Document.

     

    “Participant”
      shall have the meaning set forth in Section 10.8(c).

     

    “Payment
      Date” shall mean (a) with respect to Base Rate Loans, upon any repayment or
      prepayment, as well as the last Business Day of each March, June, September
      and
      December, commencing with the last Business Day of March 2007 and (b) with
      respect to LIBOR Loans, the last day of the Interest Period applicable
      thereto..

     

    “Payment
      Office” shall mean the Administrative Agent’s Payment Office.

     

    

    
      
        
          
          

        

        
          Bredie
            Credit Agreement 15

          
            

          

        

        
          
          

        

      

    

    

    

    “Permitted
      Acquisition” shall mean the purchase or acquisition by the Borrower or a
      Restricted Subsidiary of the Capital Stock or Properties of another Person
      or a
      business unit or other integrated operations of another Person, which in each
      such case shall engage in the Business; provided that: (a) after giving
      effect to such purchase or acquisition of Capital Stock, such Person shall
      be a
      wholly-owned Subsidiary of the Borrower, (b) immediately before and after giving
      effect thereto, no Unmatured Default or Default then exists or would result
      therefrom, and (c) the Borrower is in compliance with the financial covenants
      set forth in Section 6.2(g), calculated on a pro forma basis
      (for a period, in the case of the ratios, of the four fiscal quarters most
      recently ended for which Financial Statements have been prepared) as though
      such
      purchase or acquisition had occurred at the beginning of such period, as
      evidenced by a certificate of an Authorized Officer of the Borrower delivered
      to
      the Administrative Agent demonstrating such compliance.

     

    “Permitted
      Dollar Investments” shall mean any of the following, denominated and
      payable in Dollars: (a) securities issued or directly and fully guaranteed
      by
      the United States government or any agency or instrumentality thereof with
      a
      maturity of less than one year, (b) certificates of deposit and eurodollar
      time
      deposits with a maturity of not later than six months, bankers’ acceptances with
      a maturity of not later than six months and overnight bank deposits, in each
      case with any U.S. commercial bank of recognized stature having capital and
      surplus in excess of $500,000,000 and having a commercial paper rating (or
      the
      holding company thereof having a commercial paper rating) of “A-1” or better by
      S&P or “P-1” or better by Moody’s, and that is a member of the Federal
      Reserve System, (c) commercial paper rated “A-1” or better by S&P or “P-1”
or better by Moody’s with a maturity of less than one year, (d) guaranteed
      investment contracts with a maturity of less than one year and entered into
      with
      (or fully guaranteed by) financial institutions whose long-term unsecured
      non-credit enhanced indebtedness is rated “A-” or better by S&P or “A2” or
      better by Moody’s, and (e) investments in money market funds having a rating
      from each of S&P and Moody’s in the highest investment category granted
      thereby; provided that, notwithstanding the foregoing, no Permitted
      Dollar Investments shall be permitted with a maturity of later than the next
      Payment Date for any Loan unless, after giving effect to such later maturing
      Permitted Dollar Investments, other Permitted Dollar Investments having a
      maturity of not later than such next Payment Date remain in an amount equal
      to
      the aggregate amount of the principal, if any, and interest payment scheduled
      to
      be payable on such next Payment Date for any Loan (determined using the interest
      rate(s) applicable to the Loans on the date of determination as the interest
      rate(s) applicable until such next Payment Date).

     

    “Permitted
      Hedging Obligations” shall mean obligations of a Person under Hedging
      Agreements that are (or were) entered into by such Person in the ordinary course
      of business for the purpose of directly mitigating risks associated with:
      (a) raw materials purchases, (b) interest or currency exchange rates,
      (c) operating expenses or other anticipated obligations of such Person or
      (d) other liabilities, commitments or assets held or reasonably anticipated
      by such Person, but not for speculative purposes.

     

    “Permitted
      Holders” shall mean (a) any Person that is an Affiliate of the Borrower
      prior to an event giving rise to a Change of Control (and
      not established as an Affiliate in order to effect what would otherwise be
      a
      Change of Control) and (b) each of  the following
      shareholders

     

    

    
      
        
          
          

        

        
          Bredie
            Credit Agreement 16

          
            

          

        

        
          
          

        

      

    

    

    of
      the
      Borrower: Thomas Milmo Zambrano, Ma. Luisa Santos de Hoyos, Alberto Santos
      de
      Hoyos, Tomás Milmo Santos, Impra Café, S.A. de C.V., Alberto Garza Santos, David
      Garza Santos, Federico Garza Santos, Marcela Garza Santos, Yolanda Garza Santos,
      Blackstone Capital Partners III Merchant Banking Fund, L.P., Blackstone Family
      Investment Partnership III, L.P., Tapazeca sprl, New Hampshire Insurance
      Company, LAIF X sprl, WorldTel Mexico Telecom and Citigroup, Inc., and their
      respective Affiliates, heirs, legal representatives and successors.

     

    “Permitted
      Investments” shall mean:

     

    (a)
      with
      respect to Dollars, Permitted Dollar Investments, and

     

    (b)
      with
      respect to Pesos, Investments in any of the following, denominated and payable
      in Pesos:

     

    (i)
      obligations with a maturity of less than one year that are direct obligations
      of
      the Mexican government or of entities having the statutory guarantee of the
      Mexican government, or obligations that are expressly and unconditionally
      guaranteed by the Mexican government,

     

    (ii)
      obligations with a maturity of less than one year of Mexican commercial banks
      of
      recognized stature, supervised by the Mexican National Banking and Securities
      Commission, with a capital and surplus of at least $250,000,000 (or its
      equivalent in other currencies); provided that the aggregate
      Investments of the Credit Parties in Mexican commercial banks not having Mexican
      domestic ratings of AA+(mex) or above from Fitch and mxA+ or above from S&P
      shall not exceed $25,000,000 (or its equivalent in Pesos) at any
      time,

     

    (iii)
      commercial paper of Mexican corporations with a maturity of less than one year
      and rated at least “A3” by Standard & Poor’s, S.A. de C.V., and

     

    (iv)
      repurchase agreements with a maturity of less than one year, in each case
      related to any of the Investments described in clauses (i) through
(iii), and that are fully collateralized by such Investments, with
      any
      Mexican commercial bank that meets the criteria outlined in
clause (ii); provided that the aggregate amount invested in
      such repurchase agreements shall not exceed $25,000,000 (or its equivalent
      in
      Pesos) at any time.

     

    “Permitted
      Joint Venture/Partnership” shall mean a joint venture or partnership to
      which a Credit Party is party; provided that at the time of, and after
      giving effect to, any investment by such Credit Party in a joint venture or
      partnership, such joint venture or partnership is (a) a Guarantor or is an
      Unrestricted Subsidiary meeting the requirements of Section 6.2(j)(iv) or
      (b) if such joint venture or partnership is neither a Guarantor nor an
      Unrestricted Subsidiary, at least 80% of the Consolidated EBITDA of the Borrower
      and its Subsidiaries on a pro forma basis for the last four fiscal
      quarters is derived from Credit Parties.

     

    “Permitted
      Lien” shall have the meaning set forth in
Section 6.2(a).

     

    

    
      
        
          
          

        

        
          Bredie
            Credit Agreement 17

          
            

          

        

        
          
          

        

      

    

    

    

    “Permitted
      Refinancing” shall mean a refinancing, refunding, renewal or extension of
      any Indebtedness, provided that: (a) the principal amount of any such
      Indebtedness is not increased above the principal amount thereof outstanding
      immediately prior to such refinancing, refunding, renewal or extension, (b)
      the
      direct and contingent obligors with respect to such Indebtedness are not
      changed, (c) such Indebtedness shall not be secured by any Property other than
      the Property securing the Indebtedness being refinanced, refunded, renewed
      or
      extended and (d) if Permitted Subordinated Indebtedness is being refinanced,
      refunded, renewed or extended, then such Indebtedness shall be subordinated
      to
      the Obligations at least to the same extent as the Permitted Subordinated
      Indebtedness being refinanced, refunded, renewed or extended.

     

    “Permitted
      Subordinated Indebtedness” shall mean unsecured Indebtedness for borrowed
      money junior to and subordinate to the Obligations on terms and conditions
      satisfactory to the Required Lenders, including no principal payments thereon
      to
      be due prior to the later of the first anniversary of the Maturity Date and
      payment in full of the Obligations and no other payments to be made thereon
      if
      an Unmatured Default or Default exists or would result therefrom.

     

    “Person”
      shall mean an individual, partnership, joint venture, corporation, limited
      liability company, trust, unincorporated organization, Governmental Authority
      or
      other entity of whatever nature.

     

    “Pesos”
      or “P$” shall mean the lawful currency of the United Mexican
      States.

     

    “Platform”
      shall have the meaning set forth in Section 10.2(d).

     

    “Process
      Agent” shall have the meaning set forth in
Section 4.1(i).

     

    “Property”
      shall mean any right or interest in or to property, assets, rights or revenues
      of any kind whatsoever, whether real, personal or mixed, whether existing or
      future and whether tangible or intangible, including intellectual
      property.

     

    “Pro
      Rata Share” shall mean, as to any Lender at any time, the percentage
      equivalent (expressed as a decimal, rounded to the tenth decimal place, with
      .00000000005 rounded upward) at such time of such Lender’s Loans and unused
      Commitments then outstanding divided by the combined Loans and unused
      Commitments then outstanding of all Lenders.

     

    “Register”
      shall have the meaning set forth in Section 10.8(e).

     

    “Release
      Documentation” shall mean the documentation listed in Schedule
      4.1(l) providing for the termination and release of the Existing Liens, in
      form and substance satisfactory to the Administrative Agent.

     

    “Replacement
      Lender” shall have the meaning set forth in
Section 3.7.

     

    “Required
      Lenders” shall mean Lenders holding more than 50% of the aggregate
      principal amount of the Loans and unused Commitments then outstanding;
provided that any Loans held by any Credit Party or any Credit Party
      Affiliate shall not be considered in any such determination (i.e., the
      Required Lenders, including for the following proviso, shall be

     

    

    
      
        
          
          

        

        
          Bredie
            Credit Agreement 18

          
            

          

        

        
          
          

        

      

    

    

    determined
      as if such Loans and unused Commitments did not exist) and such holders shall
      not be entitled to vote thereon.

     

    “Reserve
      Requirement” shall mean, relative to an Interest Period for a LIBOR Loan,
      the reserve percentage (expressed as a decimal) equal to the maximum aggregate
      reserve requirement, if any (including all basic, emergency, supplemental,
      marginal and other reserves and taking into account any transitional adjustments
      or other scheduled changes in reserve requirements), specified under regulations
      issued from time to time by the Federal Reserve Board or other Governmental
      Authorities in any jurisdiction and then applicable to assets or liabilities
      consisting of and including “Eurocurrency liabilities,” as defined in
      Regulation D (or applicable to similar liabilities under any successor or
      similar regulation in any jurisdiction), having a term approximately equal
      to
      such Interest Period.

     

    “Restricted
      Payment” shall mean any payment or distribution by the Borrower or a
      Restricted Subsidiary, directly or indirectly, whether in cash or other Property
      or in obligations of the Borrower or such Restricted Subsidiary: (a) of any
      dividends on its Capital Stock, (b) in respect of the purchase, acquisition,
      redemption, deduction, retirement, defeasance or other
      acquisition for value of any of its Capital Stock or any warrants, rights or
      options to acquire such Capital Stock, now or hereafter outstanding, (c) in
      respect of the return of any capital to its stockholders as such, (d) in
      connection with any distribution or exchange of assets in respect of its Capital
      Stock, warrants, rights, options, obligations or securities to or with its
      stockholders as such, (e) in return of any irrevocable capital contributions,
      (f) other than the Obligations, in respect of any principal, interest, fees
      or
      expenses relating to any Investment by any Credit Party Affiliates (including
      Indebtedness of any Credit Party owing to any Credit Party Affiliate) or (g)
      in
      respect of any Permitted Subordinated Indebtedness.

     

    “Restricted
      Subsidiary” shall mean a Subsidiary that is not an Unrestricted
      Subsidiary.  For the purpose of clarification, a Restricted Subsidiary
      need not be a Guarantor if it is an Immaterial Subsidiary.

     

    “RPPC”
      shall mean the Public Registry of Property and Commerce (Registro Público de
      Propiedad y Comercio) of the corporate domicile of a Person organized under
      the laws of México or of the location of a Property, as the case may
      be.

     

    “S&P”
      shall mean Standard & Poor’s Ratings Services, a division of The McGraw-Hill
      Companies, Inc.

     

    “SCT”
      shall mean the Ministry of Communication and Transportation (Secretaría de
      Comunicaciones y Transportes), a ministry of the Mexican
      government.

     

    “SEC”
      shall mean the United States Securities and Exchange Commission.

     

    “Solvent”
shall
      mean,
      with respect to any Person as of any date of determination, that, as of such
      date, (a) the value of the assets of such Person (both at fair value and present
      fair saleable value) is greater than the total amount of liabilities (including
      contingent and unliquidated liabilities) of such Person, (b) such Person is
      able
      to pay all liabilities of such Person as such liabilities mature, (c) such
      Person does not have unreasonably small capital with which to conduct its
      business and (d) such Person may not be declared in concurso mercantíl
      in

     

    

    
      
        
          
          

        

        
          Bredie
            Credit Agreement 19

          
            

          

        

        
          
          

        

      

    

    

    accordance
      with Articles 9, 10 and 11 of the Mexican Bankruptcy Law (Ley de Concursos
      Mercantiles).  In computing the amount of contingent or
      unliquidated liabilities at any time, such liabilities shall be computed at
      the
      amount that, in light of all the facts and circumstances existing at such time,
      represents the amount that can reasonably be expected to become an actual or
      matured liability.

     

    “Subsidiary”
      shall mean, as to any Person: (a) any other Person who is directly or indirectly
      Controlled by such first Person or (b) any other Person at least 50% of the
      Voting Stock or the Capital Stock of which is owned by such first Person; but,
      with respect to the Borrower. For the purpose of the Financing Documents, any
      Person who is not the Borrower but would be consolidated with the Credit Parties
      on a Consolidated Basis shall be considered to be a Subsidiary of the Credit
      Party(ies) owning Capital Stock therein. Unless otherwise expressly indicated
      herein, reference herein to a Subsidiary refers to a Subsidiary of the Credit
      Parties.

     

    “Subsidiary
      Joinder Agreement” shall mean an agreement executed by a Guarantor in the
      form of Exhibit D.

     

    “Taxes”
      shall mean any present and future tax, assessment, levy, impost, duty,
      deduction, fee, withholding or other charge of whatever nature required by
      any
      Applicable Law (including any penalties or similar amounts with respect thereto
      or with respect to the non-payment thereof).

     

    “Telmex”
      shall mean Teléfonos de México, S.A. de C.V. and its Affiliates, including
      TelNor.

     

    “Telmex
      Network” shall mean the telecommunications network owned and operated by
      Telmex in México.

     

    “TelNor”
      shall mean Teléfonos del Noroeste, S.A. de C.V.

     

    “Term
      Credit Agreement” shall mean the Credit Agreement dated as of November 30,
      2006 among the Borrower, the Guarantors, the lenders party thereto and Citibank,
      N.A., as administrative agent.

     

    “Transaction
      Documents” shall mean the Financing Documents and the Material
      Documents.

     

    “Type”
      shall mean a LIBOR Loan or a Base Rate Loan.

     

    “United
      States” and “U.S.” shall each mean the United States of
      America.

     

    “Unmatured
      Default” shall mean any event or circumstance that, with the giving of
      notice, the expiration of any grace period or both, would (if not cured, waived
      or otherwise remedied during such time) constitute a Default.

     

    “Unrestricted
      Subsidiary” shall mean at any time any Subsidiary of the Borrower that
      meets the following criteria at such time: (a) such Subsidiary is a newly
      created or acquired Subsidiary of the Borrower designated in writing by the
      Borrower to the Administrative Agent as

     

    

    
      
        
          
          

        

        
          Bredie
            Credit Agreement 20

          
            

          

        

        
          
          

        

      

    

    

    an
      Unrestricted Subsidiary, provided that after giving effect to such
      designation the Borrower is in compliance with Section 6.2(j), (b) the
      loss of the Properties held by such Subsidiary, individually or in the
      aggregate, could not reasonably be expected to result in a Material Adverse
      Change, (c) such Subsidiary does not hold a Material Concession, and (d) the
      designation of such Subsidiary as an Unrestricted Subsidiary has not been
      withdrawn by the Borrower in accordance with Section
      6.2(j)(iv).

     

    “VAT
      Facility” shall mean a $93 million Peso equivalent unsecured loan to
      finance value added tax obligations in respect of the transactions contemplated
      by the Financing Documents, the Acquisition and ancillary
      transactions.

     

    “Voting
      Stock” shall mean Capital Stock in any Person, the holders of which are
      ordinarily, in the absence of contingencies, entitled to vote for the election
      of directors (or individuals performing similar functions) of such Person,
      even
      if the right so to vote has been suspended by the happening of such a
      contingency.

     

    SECTION
      1.2 Other Interpretive Provisions. (a) The
      meanings of defined terms are equally applicable to the singular and plural
      forms of the defined terms.

     

    (b)
      The
      words “hereof,” “herein,” “hereunder” and similar words refer to this Agreement
      as a whole and not to any particular provision of this Agreement; and any
      subsection, Section, Article, Schedule and Exhibit references are to this
      Agreement unless otherwise specified.

     

    (c)
      The
      term “documents” includes any and all instruments, documents, agreements,
      certificates, indentures, notices and other writings, however
      evidenced.

     

    (d)
      The
      term “including” is not limiting and shall mean “including without
      limitation.”

     

    (e)
      Unless otherwise specified, in the computation of periods of time from a
      specified date to a later specified date, the word “from” shall mean “from and
      including,” the words “to” and “until” each shall mean “to but excluding,” and
      the word “through” shall mean “to and including.”

     

    (f)
      Unless otherwise expressly provided herein: (i) references to agreements
      (including this Agreement) and other documents shall be deemed to include all
      subsequent amendments and other modifications thereto, but only to the extent
      such amendments and other modifications are not prohibited by any Financing
      Document, and (ii) references to any Applicable Law are to be construed as
      including all statutory and regulatory provisions or rules consolidating,
      amending, replacing, supplementing, interpreting or implementing such Applicable
      Law.

     

    (g)
      The
      Table of Contents, captions and headings of this Agreement are for convenience
      of reference only and shall not affect the interpretation of this
      Agreement.

     

    (h)
      The
      Financing Documents may use several different limitations, tests or measurements
      to regulate the same or similar matters. All such limitations, tests and
      measurements are cumulative and shall be performed in accordance with their
      terms. Unless otherwise expressly provided herein, any reference to any action
      of the Administrative Agent,

     

    

    
      
        
          
          

        

        
          Bredie
            Credit Agreement 21

          
            

          

        

        
          
          

        

      

    

    

    the
      Lenders or the Required Lenders by way of consent, approval or waiver shall
      be
      deemed modified by the phrase “in its/their sole good faith
      discretion.”

     

    (i)
      The
      Financing Documents are the result of negotiations among and have been reviewed
      by counsel to the Administrative Agent, the Lead Arranger, the Credit Parties
      and the Lenders, and are the products of all such Persons. Accordingly, they
      shall not be construed against the Lenders, the Lead Arranger or the
      Administrative Agent merely because of any such Person’s involvement in their
      preparation.

     

    (j)
      Except as specifically provided herein, any financial covenant or other
      provision hereof that requires the combination of Dollars and/or Pesos shall
      be
      determined in Dollars applying the Exchange Rate; provided that the
      exchange rate used in connection with the preparation of any income statement
      or
      other Financial Statement that, unlike a balance sheet, is based upon events
      that occur throughout the reporting period shall be calculated in accordance
      with GAAP using the Exchange Rates so published throughout the applicable
      period.

     

    SECTION
      1.3 Accounting Principles. Unless the context
      otherwise clearly requires, all accounting terms not expressly defined herein
      shall be construed, and all financial computations required under this Agreement
      shall be made, in accordance with GAAP.

     

     

    ARTICLE
      II

    THE
      CREDIT

     

    SECTION
      2.1 Amounts and Terms of Commitments. (a) Each
      Lender severally agrees, on the terms and conditions set forth herein, to make
      Loans to the Borrower on the Closing Date in an aggregate principal amount
      not
      to exceed such Lender’s Commitment.

     

    (b)
      The
      parties hereto hereby acknowledge and agree that if the Loans are not funded
      on
      the Closing Date as a result of any failure to satisfy the requirements in
      Sections 4.1 and 4.2, then this Agreement (and the other
      Financing Documents) shall immediately and automatically terminate except for
      such provisions hereof and thereof that (by their terms) survive
      termination.

     

    (c)
      Within the limits of each Lender’s Commitments, and subject to the other terms
      and conditions hereof, the Borrower may request Loans hereunder pursuant to
      Section 2.3(a) and make prepayments under Section 2.4. Loans
      borrowed, once repaid, may not be reborrowed except to the extent provided
      in
Section 3.2(b). Upon the making of the Loans on the Closing Date,
      all unfunded Commitments (if any) shall immediately and automatically
      terminate.

     

    SECTION
      2.2 Notes. (a) The Loans made by each Lender shall
      be evidenced by one Note for each Lender, subscribed by the Borrower and
      executed in guaranty (por aval) by each of the Guarantors. Each Lender
      shall record in its records the date, Type and amount of each Loan made by
      it
      and the amount of each payment of principal made by (or on behalf of) the
      Borrower with respect thereto. Each Lender’s record shall

     

    

    
      
        
          
          

        

        
          Bredie
            Credit Agreement 22

          
            

          

        

        
          
          

        

      

    

    

    constitute
      prima facie evidence of the accuracy of the information so recorded;
provided that the failure of a Lender to make, or an error in making,
      a
      notation thereon with respect to any Loan shall not limit or otherwise affect
      the Obligations of any Credit Party hereunder or under any such Note to such
      Lender.

     

    (b)
      Promptly upon: (i) a conversion of Loans from LIBOR Loans to Base Rate Loans
      or
vice versa in accordance with Section 2.6(g), (ii) the
      election of the Borrower in accordance with Section 2.6(e) to change
      the duration of the Interest Period, (iii) the addition of a new Guarantor,
      (iv)
      any change in organizational structure pursuant to Section 6.2(i)
      and/or (v) any assignment of Loans pursuant to Section 10.8, the Borrower
      and each Guarantor (por aval) shall, upon the request of the
      Administrative Agent, at the expense of the Borrower, promptly execute and
      deliver to the Administrative Agent for the account of each of the relevant
      Lenders, in exchange for the Note evidencing the relevant Loans of such Lender
      theretofore delivered to such Lender, a new Note or Notes payable to such Lender
      and/or such Lender’s assignee, as applicable, dated the Closing Date, in a
      principal amount equal to the principal amount then outstanding of such Note
      and
      otherwise duly completed.

     

    SECTION
      2.3 Procedure for Borrowing. (a) The Borrower
      shall deliver to the Administrative Agent (by no later than 9:00 a.m. (New
      York City time) on the Closing Date) an irrevocable written notice in the form
      of a Notice of Borrowing, requesting that the Loans be made on the Closing
      Date.
      Such Notice of Borrowing: (i) shall be delivered in accordance with the last
      paragraph of Section 4.1 and (ii) shall specify: (A) the requested
      amounts of the Loans to be borrowed by the Borrower, and (B) for the Loans,
      the
      Type of Loans requested and if the Loans are LIBOR Loans, the Interest Period
      therefor. The Administrative Agent will notify each Lender on or before the
      Closing Date of the borrowing request.

     

    (b)
      Subject to the conditions precedent set forth in Article IV, each
      Lender severally agrees to make the amount of its Pro Rata Share of the
      requested Loan available to the Administrative Agent for the account of the
      Borrower at the Administrative Agent’s applicable Payment Office by
      10:00 a.m. (New York City time) on the Closing Date in funds immediately
      available to the Administrative Agent.  Upon fulfillment of the
      conditions precedent to disbursing the Loans in Article IV, the
      Administrative Agent shall deliver the proceeds of the Loans to (or on behalf
      of) the Borrower as provided in the Notice of Borrowing.

     

    SECTION
      2.4 Prepayments:

     

    (a)
      Optional Prepayments. The Borrower shall have the right to prepay the
      Loans, in whole or in part, without premium or penalty, from time to time on
      the
      following terms and conditions: (i) the Borrower shall give the Administrative
      Agent irrevocable written notice at its Notice Office (of which the
      Administrative Agent shall promptly notify each of the Lenders) of its intent
      to
      prepay the Loans and the amount of such prepayment, which notice shall be given
      by the Borrower at or prior to 10:00 a.m. (New York City time) at least
      three Business Days (but no more than 30 days) before the date of such
      prepayment, (ii) each partial prepayment of Loans shall be in an aggregate
      principal amount of at least $10,000,000 and, if greater, in an integral
      multiple of $1,000,000, (iii) each prepayment of Loans pursuant to this
      paragraph shall be applied to the Loans of each Lender in accordance with its
      Pro Rata Share and (to the extent that

     

    

    
      
        
          
          

        

        
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            Credit Agreement 23

          
            

          

        

        
          
          

        

      

    

    

    such
      prepayment does not prepay all of the Loans) shall be applied to reduce the
      remaining scheduled principal repayments of the Loans on a pro rata
      basis and (iv) each prepayment of Loans pursuant to this paragraph shall be
      applied as provided in Section 2.9(d); it being understood
      that the Borrower shall deliver to the Administrative Agent such additional
      amounts (if any) necessary so that the amount allocated to the principal
      prepayment of the Loans is the amount indicated to be prepaid on the notice
      of
      prepayment. If such notice is given by the Borrower, then the Borrower shall
      make such prepayment (and the payment amount specified in such notice shall
      be
      due and payable) on the date specified therein, together with accrued interest
      to such date on the amount prepaid and any amounts required pursuant to
Section 3.4.

     

    (b)
      Mandatory Prepayments. The Borrower shall make mandatory prepayments of
      the Loans as follows:

     

    (i)
      Asset Sales. Other than with respect to the sale, assignment, transfer,
      conveyance, lease or other disposition of Property in the Ordinary Course of
      Business or to another Credit Party so long as such transaction is in compliance
      with Section 6.2(e), the Borrower shall prepay the outstanding Loans
      in an aggregate principal amount equal to 100% of the Net Cash Proceeds of
      any
      sale, assignment, transfer, conveyance, lease or other disposition of Property
      by any Credit Party (including of any Capital Stock of any Person, including
      a
      Credit Party, except to the extent that such Credit Party is issuing or selling
      its own Capital Stock; it being understood that such is covered in
clause (iii)) to the extent that such Net Cash Proceeds are not
      reinvested within 180 days of receipt thereof in Property related to the
      Business, such prepayment to be made no later than the first Payment Date for
      LIBOR Loans (or, if no LIBOR Loans are outstanding, then the first Payment
      Date
      for Base Rate Loans) that occurs on or after the date that is the earlier of:
      (A) 180 days after the receipt by any Credit Party of such Net Cash Proceeds
      and
      (B) the decision of the applicable Credit Party not to so reinvest such
      proceeds.

     

    (ii)
      New Debt. The Borrower shall prepay the outstanding Loans in an
      aggregate principal amount equal to 100% of the Net Cash Proceeds of the
      issuance after the Closing Date by any of the Credit Parties of any Indebtedness
      of the types described in clauses (a) and (b) of the definition of
“Indebtedness” (other than under the VAT Facility), such prepayment to be made
      promptly (and, in any event, within one Business Day) after any Credit Party’s
      receipt of such Net Cash Proceeds,

     

    (iii)
      Equity Proceeds. Other than with respect to sales by a Credit Party of
      Capital Stock issued by a different Person (which is covered in
clause (i)), the Borrower shall prepay the outstanding Loans in an
      aggregate principal amount equal to 100% of the Net Cash Proceeds of any
      issuance or sale of Capital Stock by any Credit Party, such prepayment to be
      made promptly (and, in any event, within one Business Day) after any Credit
      Party’s receipt of such Net Cash Proceeds; provided that such shall not
      apply to: (A) issuances and sales of Capital Stock by one Credit Party to
      another Credit Party and (B) the sale by the Borrower of Capital Stock to
      Citigroup in connection with the Acquisition.

     

    (iv)
      Change of Control. The Borrower shall prepay the outstanding Loans in
      full immediately upon the occurrence of a Change of Control, such prepayment
      to
      be made

     

    

    
      
        
          
          

        

        
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            Credit Agreement 24

          
            

          

        

        
          
          

        

      

    

    

    together
      with: (A) all accrued interest, fees and other amounts payable to any of the
      Financing Parties under the Financing Documents (including any amounts required
      pursuant to Section 3.4) plus (B) a premium equal to 1% of
      the outstanding principal amount of the Loans, which premium shall be allocated
      to each Lender in accordance with its Pro Rata Share.

     

    (v)
      Application. Each prepayment of Loans made pursuant to this
clause (b) shall be applied to the Loans of each Lender in
      accordance with such Lender’s Pro Rata Share.

     

    SECTION
      2.5 Repayment. The Borrower shall repay the
      principal of all Loans in full, plus all accrued and unpaid interest
      thereon, on the Maturity Date.  Except to the extent otherwise
      specifically provided in the Financing Documents, all other Obligations shall
      be
      paid on the Maturity Date.

     

    SECTION
      2.6 Interest. (a) Each Loan shall bear interest on
      the outstanding principal amount thereof from the Closing Date at a rate per
      annum equal to: (i) LIBOR (Reserve Adjusted) plus the Applicable
      Margin or (ii) the Base Rate plus the Applicable Base Rate Margin, as
      selected by the Borrower.

     

    (b)
      Interest on each Loan shall be paid in arrears on each Payment Date. Accrued
      interest also shall be paid on the date of any prepayment of Loans under
Section 2.4 for the portion of the Loans so prepaid.

     

    (c)
      Notwithstanding clauses (a) and (b), while any Default
      exists: (i) the Borrower shall pay interest (after as well as before entry
      of
      judgment thereon to the extent permitted by Applicable Law) on the principal
      amount of all outstanding Loans and, to the extent permitted by Applicable
      Law,
      on any other due but unpaid Obligations, at a rate per annum equal to
      the applicable Default Rate, and (ii) all such interest shall be payable on
      demand of the Administrative Agent (with respect to interest on the Loans)
      or
      the Person to whom such payment is due.

     

    (d)
      Anything herein to the contrary notwithstanding, the Obligations shall be
      subject to the limitation that payments of interest shall not be required for
      any period for which interest is computed hereunder to the extent (but only
      to
      the extent) that contracting for or receiving such payment by such Lender would
      be contrary to any law applicable to such Lender that limits the highest rate
      of
      interest that lawfully may be contracted for, charged or received by such
      Lender, and in such event the Credit Parties shall pay such Lender interest
      at
      the highest rate permitted by Applicable Law.

     

    (e)
      With
      respect to any Interest Period of shorter duration than three months pursuant
      to
      the definition of “Interest Period,” the Borrower shall notify the
      Administrative Agent, which notice must be received by the Administrative Agent
      not later than 11:00 a.m. (New York City time) at least three Business Days
      before the commencement of such Interest Period, of the desired duration of
      such
      Interest Period.

     

    (f)
      The
      Administrative Agent promptly (and, in any event, on the day such notice is
      received) shall notify each Lender of its receipt of each notice pursuant to
      clause (e).

     

    

    
      
        
          
          

        

        
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            Credit Agreement 25

          
            

          

        

        
          
          

        

      

    

    

    

    (g)
      The
      Borrower may, upon irrevocable written notice given to the Administrative Agent
      not later than 11:00 a.m. (New York City time) on the third Business Day
      before the date of the proposed conversion, convert all outstanding Loans from
      LIBOR Loans into Base Rate Loans or from Base Rate Loans into LIBOR Loans;
      provided that any conversion of a LIBOR Loan into a Base Rate Loan only
      shall be made on the last day of the Interest Period for such LIBOR Loan. Such
      notice shall specify the date of such conversion (which shall be a Business
      Day). The Administrative Agent promptly shall notify each Lender of its receipt
      of each such notice.

     

    SECTION
      2.7 Fees.  The Borrower shall pay to the
      Administrative Agent, for its own account, the fees set forth in the separate
      fee letter(s) between the Borrower and the Administrative Agent pursuant to
      the
      terms thereof.

     

    SECTION
      2.8 Computation of Fees and Interest. (a) All
      computations of interest for Base Rate Loans shall be made on the basis of
      the
      actual number of days in the applicable year and actual days elapsed. All other
      computations of interest and fees shall be made on the basis of a 360-day year
      and actual days elapsed. Interest and fees shall accrue during each period
      during which such interest or fees are computed from the first day thereof
      to
      the last day thereof.

     

    (b)
      Each
      determination of an interest rate (and the related amount of interest payable
      on
      the Loans) by the Administrative Agent shall be conclusive and binding upon
      the
      Credit Parties and the Lenders in the absence of manifest error. The
      Administrative Agent shall, at the written request of the Borrower or any
      Lender, deliver to the Borrower or such Lender, as the case may be, a written
      statement showing the quotations used by the Administrative Agent in determining
      any interest rate and the resulting interest rate.

     

    SECTION
      2.9 Payments by Credit Parties. (a) All payments
      to be made by any Credit Party under the Financing Documents shall be made
      without set-off, defense, recoupment or counterclaim or other reduction. Except
      as otherwise expressly provided herein, all payments by (or on behalf of) any
      Credit Party under the Financing Documents shall be made to the Administrative
      Agent for the account of the Lenders (or other applicable recipient) at the
      Payment Office, and shall be made in Dollars, and in immediately available
      funds, no later than 12:00 noon (New York City time) on the specified payment
      date. The Administrative Agent promptly (and, in any event, on the date
      received) shall distribute to each Lender (or other applicable recipient) its
      Pro Rata Share (or other applicable share as expressly provided in the Financing
      Documents) of such payment in like funds as received. Any payment received
      by
      the Administrative Agent later than 12:00 noon (New York City time) on a payment
      date shall be deemed to have been received on the following Business Day, and
      any applicable interest or fee shall continue to accrue; provided that
      such shall not be considered to be a Default and no Default Rate shall be
      applicable as a result thereof.

     

    (b)
      Whenever any payment is due on a day other than a Business Day, such payment
      shall be made on the preceding Business Day, and such reduction of time shall
      in
      such event be included in the computation of interest or fees, as the case
      may
      be.

     

    

    
      
        
          
          

        

        
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            Credit Agreement 26

          
            

          

        

        
          
          

        

      

    

    

    

    (c)
      Unless the Administrative Agent receives notice from the Borrower before the
      date on which any payment is due to the Lenders that the Borrower (or the
      Guarantors on its behalf) shall not make such payment in full as and when
      required, the Administrative Agent may assume that the Credit Parties have
      made
      such payment in full to the Administrative Agent on such date in immediately
      available funds and the Administrative Agent may (but shall not be so required),
      in reliance upon such assumption, distribute to each Lender on such due date
      an
      amount equal to the amount then due such Lender. If and to the extent the Credit
      Parties have not made such payment in full to the Administrative Agent, then
      each Lender shall repay to the Administrative Agent on demand such amount so
      distributed to such Lender by the Administrative Agent, together with interest
      thereon at the Federal Funds Rate for each day from the date such amount is
      distributed to such Lender to the date repaid to the Administrative Agent.
      The
      giving of notice by the Borrower to the Administrative Agent that the Borrower
      shall not make (or cause the Guarantors to make) any payment in full as and
      when
      required shall not be construed in any manner whatsoever as: (x) a consent
      by
      the Financing Parties to such failure to pay or (y) a waiver to any of the
      rights that the Financing Parties may have.

     

    (d)
      Payments received by the Administrative Agent from (or on behalf of) the
      Borrower in respect of Loans shall be applied as follows: first, to any
      fees (on a pro rata basis) due pursuant to Section 2.7;
second, to any interest (including, if applicable, at
      the Default Rate)
      due and payable pursuant to Section 2.6 (including, pursuant to
Section 2.6(b), on any amount of the Loans that is prepaid), such
      interest to be paid pro rata to each Lender; third, to
      principal due and payable pursuant to Sections 2.4 and 2.5,
      such principal to be paid pro rata to each Lender; and fourth,
      to all other Obligations payable in connection with the Financing Documents
      in
      such order as shall be determined by the Required Lenders; it being
      understood that the Payment Dates for interest for the Loans may not be
      concurrent and any payment of interest with respect to a Loan shall be applied
      only to interest then due and payable on the Loans. 

     

    SECTION
      2.10 [RESERVED]

     

    SECTION
      2.11 Sharing of Payments, Etc. If, other than as
      expressly provided elsewhere herein, any Lender shall obtain on account of
      the
      Loans held by it any payment (whether voluntary, involuntary, through the
      exercise of any right of set-off or otherwise) in excess of its Pro Rata Share
      (or other share contemplated hereunder), then such Lender shall promptly: (a)
      notify the Administrative Agent of such fact and (b) purchase from the other
      Lenders such participations in the Loans made by them as shall be necessary
      to
      cause such purchasing Lender to share the excess payment pro rata with
      each of the other Lenders in accordance with such Lender’s Pro Rata Share;
provided that if all or any portion of such excess payment is
      thereafter recovered from the purchasing Lender, then such purchase shall to
      that extent be rescinded and each other Lender shall repay to the purchasing
      Lender the purchase price paid therefor, together with an amount equal to such
      paying Lender’s ratable share (according to the proportion of: (i) the amount of
      such paying Lender’s required repayment to (ii) the total amount so recovered
      from the purchasing Lender) of any interest or other amount paid or payable
      by
      the purchasing Lender in respect of the total amount so recovered. The Credit
      Parties agree that any Lender so purchasing a participation from another Lender
      may, to the fullest extent permitted by Applicable Law, exercise all its rights
      to receive payment (including the right of set-off, but subject to
Section 10.9) with respect

     

    

    
      
        
          
          

        

        
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    to
      such
      participation as fully as if such Lender were the direct creditor of the Credit
      Parties in the amount of such participation and not subject to the restrictions
      on Participant voting rights under Section 10.8(c). The Administrative
      Agent shall keep records (which shall be conclusive and binding in the absence
      of manifest error) of participations purchased under this Section and in each
      case shall notify the Lenders following any such purchases or
      repayments.

     

     

    ARTICLE
      III

    TAXES
      AND ILLEGALITY

     

    SECTION
      3.1 Taxes. (a) Any and all payments by the Credit
      Parties to the Financing Parties under the Financing Documents shall be made
      free and clear of and without deduction or withholding for any and all present
      and future Taxes, excluding: (i) in the case of each such Financing Party,
      taxes
      imposed upon or measured by its net income or net profits and franchise or
      similar taxes and branch profits or similar taxes imposed upon it, by any
      jurisdiction as a result of any current or former connection between such
      Financing Party and such jurisdiction or any political subdivision or taxing
      authority thereof or therein (other than any such connection arising solely
      from
      such Financing Party having executed, delivered or performed its obligations
      or
      received a payment under, or having been a party to, or having enforced this
      Agreement or any other Financing Document) and (ii) taxes imposed by any
      jurisdiction outside México other than any taxes that arise as a result of any
      Credit Party causing payment to be made from or through a jurisdiction other
      than México (all such excluded Taxes are herein referred to as “Excluded
      Taxes” and all Taxes that are not Excluded Taxes are herein referred to as
“Covered Taxes”).

     

    (b)
      If
      any Credit Party shall be required by Applicable Law to deduct or withhold
      any
      Covered Taxes from or in respect of any sum payable under any Financing Document
      to any Financing Party, then:

     

    (i)
      the
      sum payable shall be increased by such additional amounts (the “Additional
      Amounts”) as necessary so that, after making all required deductions and
      withholdings of Covered Taxes, such Financing Party receives an amount equal
      to
      the sum it would have received had no such deductions or withholdings of Covered
      Taxes been made,

     

    (ii)
      such
      Credit Party shall make such deductions and withholdings, and

     

    (iii)
      such Credit Party promptly shall pay the full amount deducted or withheld to
      the
      relevant taxing authority or other authority in accordance with Applicable
      Law;

     

    provided
      that notwithstanding any contrary provisions and excluding any Person organized
      under the laws of México and any Export Credit Agency from the applicability of
      this proviso, the Credit Parties shall not be obligated to pay to any Financing
      Party any amounts described in this Section 3.1 in respect of any
      portion of Covered Taxes (including any Additional Amounts) that would not
      have
      been imposed but for the failure of such Financing Party: (A) to be registered
      with Hacienda as a Foreign Financial Institution, or (B) to be a resident (or
      to
      have the principal offices of such Financing Party be a resident, if such
      Financing Party lends through a branch or

     

    

    
      
        
          
          

        

        
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    agency)
      for tax purposes, of a country with which México has entered into a treaty that
      is in effect for the avoidance of double taxation, entitled to the benefits
      of
      such treaty and to the reduced rate established in such treaty for the type
      of
      interest provided therein, or (C) to comply with any certification,
      identification, information, declaration or other reporting requirements or
      to
      deliver to the Credit Parties information, documentation or other evidence
      concerning the nationality, residence, identity or registration with Hacienda
      of
      such Financing Party, in each case if compliance is required by a statute,
      treaty or regulation of México or any political subdivision thereof or any
      taxing authority therein or general administrative practice of a Mexican
      Governmental Authority as a precondition or requirement to the exemption from,
      or the reduction in the rate of, deduction or withholding of Taxes;
provided that any such Financing Party may cure any such failure in
      order to receive such Additional Amounts if such cure is sufficiently timely
      to
      effect or obtain the exemption from or reduction in the rate of deduction or
      withholding of Taxes.

     

    (c)
      Each
      Financing Party (other than a Person that is organized under the laws of México
      or an Export Credit Agency) represents and warrants to the Credit Parties that
      such Financing Party is registered as a Foreign Financial Institution with
      Hacienda and resident of a country that is a party to a treaty with México for
      the avoidance of double taxation entitled to the benefits of such treaty and
      to
      the reduced rate established in such treaty for the type of interest provided
      therein.

     

    (d)
      Each
      Credit Party agrees to indemnify and hold harmless each Financing Party for
      any
      Covered Taxes and Other Taxes paid by such Financing Party in connection with
      the execution, delivery and performance of this Agreement, including penalties
      and interest arising therefrom or with respect thereto, whether or not such
      Covered Taxes and Other Taxes were correctly or legally asserted. Payment under
      this indemnification shall be made within 30 days after the date on which such
      Financing Party makes written demand therefor.

     

    (e)
      Within 30 days after the date of any payment by any Credit Party of any Covered
      Taxes in connection with any payment by any Credit Party under the Financing
      Documents, such Credit Party shall furnish to the Administrative Agent (for
      distribution to the applicable Financing Party(ies)) the original or a certified
      copy of a receipt evidencing payment thereof, or other evidence of payment
      reasonably satisfactory to the Administrative Agent.

     

    (f)
      Each
      Financing Party (other than any Person organized under the laws of México or an
      Export Credit Agency) shall use reasonable efforts (consistent with legal and
      regulatory restrictions): (i) to file any certificate or document or to furnish
      any information as reasonably requested by a Credit Party pursuant to any
      applicable treaty, law or regulation or (ii) to designate a different Lending
      Office, if the making of such a filing, the furnishing of such information
      or
      the designation of such other Lending Office would avoid the need for or reduce
      the amount of any Additional Amounts payable by the Credit Parties pursuant
      to
      this Section and would not, in the sole judgment of such Financing Party, be
      illegal or otherwise disadvantageous to such Financing Party. It is understood
      and agreed that nothing in this Section shall interfere with the rights of
      any
      Financing Party to conduct its fiscal and tax affairs in such manner as it
      deems
      fit.

     

    

    
      
        
          
          

        

        
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            Credit Agreement 29

          
            

          

        

        
          
          

        

      

    

    

    

    (g)           (i)           If
      any additional amounts or indemnity payments are made by the Credit Parties
      to
      any Financing Party with respect to any Covered Taxes or Other Taxes pursuant
      to
      this Section 3.1 and such Financing Party in its reasonable discretion is
      entitled to a refund of such Covered Taxes or Other Taxes from the taxing
      jurisdiction to which the Covered Taxes or Other Taxes were paid, then such
      Financing Party shall, to the extent that it can do it so without prejudice
      to
      the retention of the amount of such refund, make reasonable efforts that would
      not materially prejudice such Financing Party or otherwise be detrimental to
      such Financing Party to apply for such refund and reimburse to the Credit
      Parties such amount of any refund received (net out-of-pocket expenses
      incurred).

     

    (ii)           If
      any payment is made by the Credit Parties to or for the account of any Financing
      Party after deduction for or on account of any Covered Taxes or Other Taxes,
      and
      increased payments are made by the Credit Parties pursuant to this Section
      3.1, then, if such Financing Party at its reasonable discretion determines
      that it has received or been granted a refund or credit for such Covered Taxes
      or Other Taxes, such Financing Party shall, to the extent that it can do so
      without prejudice to the retention of the amount of such refund or credit,
      reimburse to the Credit Parties such amount as such Financing Party shall
      determine in its reasonable discretion to be attributable to the relevant
      Covered Taxes, Other Taxes, or deduction, or withholding.  Nothing
      herein contained shall oblige any Financing Party to disclose its tax returns
      or
      any other information it deems confidential taking into account the other
      provisions of this Section 3.1(g).

     

    (h)
      The
      Credit Parties shall be responsible for the payment of any and all Other Taxes
      and any interest and penalties related thereto.

     

    SECTION
      3.2 Illegality. (a) If, on or after the Closing
      Date, any Lender determines that the introduction of any Applicable Law, any
      change in any Applicable Law or in the interpretation or administration of
      any
      Applicable Law, or any other reason whatsoever has made it unlawful, or that
      any
      Governmental Authority has asserted that it is unlawful, for any Lender or
      its
      applicable Lending Office to make or maintain LIBOR Loans, then, on written
      notice thereof by such Lender to the Borrower through the Administrative Agent,
      any obligation of such Lender to continue (or convert Base Rate Loans into)
      LIBOR Loans shall be suspended until such Lender notifies the Administrative
      Agent and the Borrower in writing that the circumstances giving rise to such
      determination no longer exist.

     

    (b)
      If a
      Lender determines that it is unlawful to maintain any outstanding LIBOR Loan,
      then the Borrower shall, upon its receipt of written notice of such fact and
      demand from such Lender (with a copy to the Administrative Agent), prepay in
      full any LIBOR Loan of such Lender then outstanding, together with interest
      accrued thereon, either on the last day of the Interest Period thereof or,
      if
      earlier, on the date on which such Lender may no longer lawfully continue to
      maintain such LIBOR Loan. If the Borrower is required so to prepay any LIBOR
      Loan, then, concurrently with such prepayment, the Borrower shall borrow from
      the affected Lender, in the amount of such repayment, a Base Rate Loan having
      the same principal amount; it being understood that any such repayment
      by the Borrower shall not constitute a repayment of the Loan hereunder pursuant
      to Section 2.5.

     

    

    
      
        
          
          

        

        
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            Credit Agreement 30

          
            

          

        

        
          
          

        

      

    

    

    

    (c)
      If
      the obligation of any Lender to continue (or convert Base Rate Loans into)
      LIBOR
      Loans has been so terminated or suspended, then all Loans that otherwise would
      be continued (or converted) by such Lender as LIBOR Loans shall be maintained
      as
      Base Rate Loans instead.

     

    (d)
      Before giving any notice to the Administrative Agent or demand upon the Borrower
      under this Section, an affected Lender shall designate a different Lending
      Office with respect to its LIBOR Loans if such designation shall avoid the
      need
      for giving such notice or making such demand and shall not, in the sole judgment
      of such Lender, be illegal or otherwise disadvantageous to such
      Lender.

     

    SECTION
      3.3 Increased Costs and Reduction of Return. (a)
      If any Lender determines that, due to either: (i) the introduction of or any
      change in or in the interpretation of any Applicable Law or (ii) the compliance
      by such Lender with any guideline or request from any Governmental Authority
      (whether or not having the force of law), there shall be any increase in the
      cost to such Lender of agreeing to make or making, funding or maintaining any
      Loan, then the Borrower shall be liable for, and from time to time, promptly
      upon demand (with a copy of such demand to be sent to the Administrative Agent),
      shall pay to the Administrative Agent for the account of such Lender, additional
      amounts as are sufficient to compensate such Lender for such increased costs
      (calculated in accordance with Section 3.4).  For the
      avoidance of doubt, this Section 3.3 does not apply to Taxes which are
      covered solely by Section 3.1.

     

    (b)
      If
      any Lender shall determine that: (i) the introduction of any Capital Adequacy
      Regulation, (ii) any change in any Capital Adequacy Regulation, (iii) any change
      in the interpretation or administration of any Capital Adequacy Regulation
      by
      any Governmental Authority charged with the interpretation or administration
      thereof or (iv) compliance by such Lender (or its Lending Office) or any Person
      controlling such Lender with any Capital Adequacy Regulation, affects or would
      affect the amount of capital required or expected to be maintained by such
      Lender, its Lending Office or such Person and (taking into consideration such
      Lender’s, such Lending Office’s or such Person’s policies with respect to
      capital adequacy and such Lender’s or such Person’s desired return on capital)
      determines that the amount of such capital is increased as a consequence of
      its
      Commitment, Loans, credits or obligations under this Agreement, then, upon
      written demand of such Lender to the Borrower through the Administrative Agent,
      the Borrower promptly shall pay to the Administrative Agent for the account
      of
      such Lender, from time to time as specified by the Lender, additional amounts
      sufficient to compensate such Lender for such increase.

     

    SECTION
      3.4 Funding Losses. Within fifteen days after
      demand, the Borrower shall reimburse each Lender and hold each Lender harmless
      from any loss or expense that such Lender has sustained or incurred as a
      consequence of:

     

    (a)
      the
      failure of the Borrower to make on a timely basis any payment of principal
      or
      interest of any LIBOR Loan,

     

    (b)
      the
      failure of the Borrower to borrow a Loan on the Closing Date,

     

    

    
      
        
          
          

        

        
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            Credit Agreement 31

          
            

          

        

        
          
          

        

      

    

    

    

    (c)
      the
      failure of the Borrower to make any prepayment of any LIBOR Loan in accordance
      with Section 2.4, and

     

    (d)
      the
      prepayment or other payment (including after acceleration thereof for any
      reason) of a LIBOR Loan on a day that is not the last day of the relevant
      Interest Period, in each case other than a prepayment required pursuant to
      Section 3.2(b),

     

    including
      any such loss or expense arising from the liquidation or reemployment of funds
      obtained by such Lender to maintain its LIBOR Loans (but excluding loss of
      the
      Applicable Margin for the period after any such payment or failure to borrow
      or
      prepay), or from fees payable to terminate the deposits from which such funds
      were obtained. For purposes of calculating amounts payable by the Borrower
      to
      the Lenders under this Section and under Section 3.3(a), each LIBOR
      Loan made by a Lender (and each related reserve, special deposit or similar
      requirement) conclusively shall be deemed to have been funded at LIBOR (Reserve
      Adjusted) applicable to such Loan by a matching deposit or other borrowing
      for a
      comparable amount and for a comparable period, whether or not such Loan is
      in
      fact so funded.

     

    SECTION
      3.5 Inability to Determine Rates. (a) If the
      Administrative Agent determines that for any reason adequate and reasonable
      means do not exist for determining LIBOR for any Interest Period with respect
      to
      a proposed LIBOR Loan, then the Administrative Agent promptly shall so notify
      the Borrower and each Lender. Thereafter, the obligation of the Lenders to
      make
      or maintain LIBOR Loans hereunder shall be suspended until the Administrative
      Agent revokes such notice in writing, which revocation shall be promptly given
      upon such adequate and reasonable means of determining LIBOR becoming available.
      If LIBOR Loans are then outstanding, then such Lenders shall continue such
      Loans
      as Base Rate Loans during each following Interest Period for such Loan until
      the
      Administrative Agent revokes such notice in writing.

     

    (b)
      If
      any Lender determines that LIBOR applicable to any Interest Period with respect
      to a LIBOR Loan would not adequately and fairly reflect the cost to such Lender
      of funding such LIBOR Loan, then such Lender promptly so shall notify the
      Administrative Agent and the Borrower. Thereafter, the obligation of such Lender
      (but not the other Lenders) to make or maintain LIBOR Loans hereunder shall
      be
      suspended until such Lender revokes such notice in writing, which revocation
      shall be promptly given as soon as such Lender determines that the applicable
      LIBOR would adequately and fairly reflect its cost of funding such LIBOR Loan.
      If LIBOR Loans are then outstanding, then such Lender shall continue such Loans
      as Base Rate Loans during each following Interest Period for such Loan until
      such Lender revokes such notice in writing.

     

    SECTION
      3.6 Certificates of the Lenders and Administrative
      Agent. Any Lender or Agent claiming reimbursement or compensation under
      this Article shall deliver to the Borrower (with a copy to the Administrative
      Agent) a certificate setting forth in reasonable detail the reason for such
      reimbursement or compensation and the amount payable to such Lender or the
      Administrative Agent hereunder, which certificate shall constitute prima
      facie evidence of the accuracy of the information so detailed.

     

    

    
      
        
          
          

        

        
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    SECTION
      3.7 Substitution of Lenders. If any Lender (an
“Affected Lender”) fails to meet the status referenced
      in Section
      3.1(b) or is entitled to additional amounts or indemnity payments under
Section 3.3 of this Agreement, the Borrower may: (i) request the Affected
      Lender to use reasonable efforts to obtain a replacement bank or financial
      institution satisfactory to the Borrower (a “Replacement Lender”) to
      acquire and assume all or a portion of all of such Affected Lender’s Loans and
      Commitment, (ii) request one or more of the other Lenders to acquire and assume
      all or part of such Affected Lender’s Loans and Commitment; it being
      understood that no such other Lender shall be so required to acquire and
      assume any of such Loans and/or Commitments, or (iii) designate a Replacement
      Lender. Any designation of a Replacement Lender under clause (i) or
(iii) shall be subject to the prior written consent of the Administrative
      Agent (which consent shall not be unreasonably withheld or delayed and shall
      be
      deemed to have been given if no negative response shall have been received
      from
      the Administrative Agent within five Business Days of the Administrative Agent’s
      receipt of a request for such consent) and the other provisions relating to
      the
      assignment set forth in Section 10.8.

     

    SECTION
      3.8 Survival. With the exception of the
      obligations of the Credit Parties under Section 3.1 (which
      obligations shall survive indefinitely), the agreements and obligations of
      the
      Credit Parties in this Article shall survive until the irrevocable payment
      in
      full of all Obligations in Dollars and Pesos, as applicable, and the
      cancellation of all the Commitments.

     

     

    ARTICLE
      IV

    CONDITIONS
      PRECEDENT

     

    SECTION
      4.1 Conditions Precedent to Making Loans. The
      obligation of each Lender to make its Loans is subject to the conditions that
      on
      the Closing Date:

     

    (a)
      Transaction Documents.

     

    (i)
      Each
      of the Financing Documents shall have been duly authorized, executed and
      delivered by each party thereto. Each Financing Party shall have received an
      original of each Financing Document to which it is a party executed by all
      parties thereto.

     

    (ii)
      The
      Borrower shall have duly authorized and executed a Note for the account of
      each
      applicable Lender duly executed in guaranty (por aval) by
      each Guarantor. Each Note shall be appropriately completed with the name and
      address of the Lender, the principal amount of the Loans made by the applicable
      Lender and the date of issuance (which shall be the Closing Date) inserted
      therein. Each Note shall be delivered by the Borrower to the Administrative
      Agent. As soon as practicable after the Closing Date, the Administrative Agent
      shall deliver the Notes received by it pursuant to the preceding sentence to
      the
      respective Lenders.

     

    

    
      
        
          
          

        

        
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            Credit Agreement 33

          
            

          

        

        
          
          

        

      

    

    

    

    (b)
      Financial Statements. Each Financing Party shall have received: (i)
      copies of year-end 2004 and 2005 audited consolidated Financial Statements
      prepared in accordance with GAAP of each of: (A) the Borrower (on a consolidated
      basis), and (B) the Avantel Companies (on a combined basis), (ii) copies of
      third quarter 2006 unaudited consolidated Financial Statements for the Borrower,
      to the extent available before the Closing Date, (iii) certificates dated the
      Closing Date and signed by an Authorized Officer of the Borrower stating that:
      (A) such Financial Statements are true, complete and correct in all material
      respects and (B) no Material Adverse Change has occurred, and (iv) consolidated
      Financial Statements of the Credit Parties for the 2004 and 2005 Fiscal Years
      and the nine-month period ending September 30, 2006 prepared on a pro
      forma basis as if the Acquisition had occurred.

     

    (c)
      Evidence of Authority. The Administrative Agent shall have received the
      names, specimen signatures and evidences of authority of the Persons signing
      the
      Financing Documents on behalf of the Credit Parties.

     

    (d)
      Corporate Proceedings. The Administrative Agent shall have received a
      copy of the Organizational Documents and resolutions of the board of directors
      (or other appropriate authorizing actions (including any necessary equityholder
      or similar approval) or documents) of each Credit Party authorizing the
      execution, delivery and performance by each such Credit Party of each Financing
      Document to which it is a party, in each case certified by the Secretary or
      an
      Assistant Secretary (or other appropriate officer) of such Credit Party as
      of
      the Closing Date; and each such certificate shall be in form and substance
      satisfactory to each Financing Party and shall state that the resolutions (or
      other authorizing actions or documents) thereby certified have not been amended,
      modified, revoked or rescinded and are in full force and effect on and as of
      the
      Closing Date.

     

    (e)
      Legal Opinions. The Lead Arranger and each of the Financing Parties shall
      have received the following legal opinions, which legal opinions shall be dated
      the Closing Date, addressed to the Lead Arranger and each Financing Party and
      in
      the forms attached hereto as Exhibit E:

     

    (i)
      the
      opinion of Cahill Gordon & Reindel LLP, special New York counsel to the
      Credit Parties,

     

    (ii)
      the
      opinion of Mayer, Brown, Rowe & Maw LLP, special New York counsel to the
      Administrative Agent and the Lenders,

     

    (iii)
      the
      opinion of D&A Morales & Asociados, S.C., special Mexican counsel to the
      Credit Parties,

     

    (iv)
      the
      opinion of internal Mexican counsel of the Borrower,

     

    (v)
      the
      opinion of internal Mexican counsel of the Avantel Companies, and

     

    

    
      
        
          
          

        

        
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            Credit Agreement 34

          
            

          

        

        
          
          

        

      

    

    

    

    (vi)
      the
      opinion of Ritch Mueller, S.C., special Mexican counsel to the Administrative
      Agent and the Lenders.

     

    (f)
      Approvals and Other Consents. The Administrative Agent shall have
      received a certificate of an Authorized Officer of the Borrower certifying
      that
      all: (i) Governmental Approvals set forth in Schedule 5.1(i) with
      respect to the Financing Documents and the Acquisition and the conduct of the
      business of the Borrower and its Subsidiaries, except for such Government
      Approvals relating to but not material to the conduct of the business of the
      Borrower and its Subsidiaries, are in full force and effect and, except as
      disclosed in such Schedule, not currently being appealed, and (ii) other
      consents, if any, necessary for the Credit Parties’ execution, delivery and
      performance of the Financing Documents and all Credit Parties’ participation in
      the Acquisition have been obtained and are in full force and
      effect.

     

    (g)  [RESERVED]

     

    (h)
      Fees and Expenses. All fees and expenses (including Attorney Costs) due
      and payable by the Credit Parties to the Lead Arranger or any Financing Party
      pursuant to a Financing Document (or otherwise pursuant to
Sections 2.7 and/or 10.4 and/or otherwise) on or before the
      Closing Date shall have been paid or the Credit Parties shall have made
      arrangements satisfactory to the applicable recipient(s) for the payment
      thereof. The Administrative Agent shall have received evidence of payment by
      the
      Credit Parties of all such accrued and unpaid fees and expenses to the extent
      then due and payable on the Closing Date, together with Attorney Costs of the
      Lead Arranger and the Administrative Agent to the extent invoiced on or before
      the Closing Date, plus such additional amounts of Attorney Costs as
      shall constitute the Lead Arranger’s and Agent’s reasonable estimate of Attorney
      Costs incurred or to be incurred by it through the closing proceeding
      (provided that such estimate shall not thereafter preclude final
      settling of accounts between the Credit Parties and the Lead Arranger or Agent,
      as applicable), including any such costs, fees and expenses arising under or
      referenced in Sections 2.7 and/or 10.4.

     

    (i)
      Process Agent. The Administrative Agent shall have received from each
      Credit Party evidence that: (i) such Person has irrevocably appointed as its
      agent for service of process (with respect to all of the Financing Documents
      and
      all other related agreements to which they are a party) CT Corporation System,
      111 Eighth Avenue, New York, New York 10011 (the “Process Agent”), (ii)
      a notarized power of attorney has been granted to such agent by all such Persons
      organized in México and (iii) the Process Agent has accepted such appointment
      and has agreed to forward promptly to such Person all legal process addressed
      to
      such Person received by such agent.

     

    (j)
      [RESERVED]

     

    (k)
      Borrower’s Certificate. The Administrative Agent shall have received a
      certificate signed by an Authorized Officer of the Borrower, dated the Closing
      Date, to the effect that: (i) no Default or Unmatured Default exists or will
      exist immediately after

     

    

    
      
        
          
          

        

        
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            Credit Agreement 35

          
            

          

        

        
          
          

        

      

    

    

    the
      funding of the Loans and (ii) all representations and warranties of the Borrower
      and each other Credit Party contained herein and/or in the other Financing
      Documents are true and correct on and as of such date, except to the extent
      that
      any such representation or warranty is expressed to be made only as of an
      earlier date, in which case such representation or warranty was true and correct
      on and as of such earlier date.

     

    (l)
      Termination of Existing Credit Agreement. The Administrative Agent shall
      have received the agreement of the administrative agent and collateral agent
      under the Existing Credit Agreement that all Existing Liens shall be immediately
      released upon such administrative agent’s receipt of an amount identified in a
“pay-out” letter delivered to the Administrative Agent on or before the Closing
      Date; provided that the formalization, filing and registration of the
      Release Documentation shall be conducted as provided in Section 6.1(j);
it being understood that the Administrative Agent shall deliver (and
      the Borrower has irrevocably instructed the Administrative Agent to deliver)
      such amounts in Dollars and Pesos to (or upon the instructions of) the
      administrative agent under the Existing Credit Agreement on the Closing Date
      in
      the manner provided in Section 2.3(b).

     

    (m)
      Acquisition. The Acquisition shall be consummated simultaneously with the
      funding hereunder in accordance with Applicable Law and on the terms described
      in the agreements listed on Schedule 4.1(m) (the “Acquisition
      Documentation”); the Acquisition Documentation and all other related
      documentation shall be reasonably satisfactory to the Lead Arranger and the
      Administrative Agent; and the Administrative Agent shall be reasonably satisfied
      with any change proposed to the capitalization, structure and equity ownership
      of each of the Borrower and the Avantel Companies after giving effect to the
      Acquisition, from such capitalization, structure and equity ownership as
      heretofore described to the Administrative Agent.

     

    (n)
      Solvency. The Administrative Agent shall have received a certificate of
      the Borrower signed by the chief financial officer of the Borrower certifying
      that the Borrower and its Subsidiaries, on a Consolidated Basis after giving
      effect to the Acquisition and the other transactions contemplated hereby, are
      Solvent.

     

    (o)
      Know Your Customer.  The Administrative Agent shall have
      received, at least five Business Days prior to the Closing Date, all
      documentation and other information required by regulatory authorities under
      applicable “know your customer” and anti-money laundering rules and regulations,
      including without limitation the PATRIOT Act.

     

    (p)
      Ratings. The Borrower shall have corporate ratings from S&P of at
      least “B+” and from Moody’s of at least “B1”.

     

    (q)
      Term Credit Agreement. The Lead Arranger and each Financing Party shall
      have received confirmation satisfactory to it with respect to the closing and
      funding under the Term Credit Agreement occurring simultaneously with the
      funding hereunder.

     

    (r)
      Additional Matters. Each Financing Party shall have received such other
      documents relating to the Acquisition, this Agreement or any other
      Transaction

     

    

    
      
        
          
          

        

        
          Bredie
            Credit Agreement 36

          
            

          

        

        
          
          

        

      

    

    

    Document
      or the transactions contemplated hereby or thereby as it shall have reasonably
      requested, in each case in form and substance satisfactory to it.

     

    (s)
      Notice of Borrowing. The Borrower shall have delivered a Notice of
      Borrowing in accordance with Section 2.3.

     

    (t)
No
      Default; Representations and Warranties. Immediately before and after giving
      effect to such Loans: (i) no Default or Unmatured Default shall exist and (ii)
      all representations and warranties made by any Credit Party contained herein
      or
      in the other Financing Documents shall be true and correct, except to the extent
      that any such representation or warranty is expressed to be made only as of
      an
      earlier date, in which case such representation or warranty shall have been
      true
      and correct on and as of such earlier date.

     

    (u)  Schedules.
      The informational schedules to this Agreement (Schedules 4.1(l),
4.1(m), 5.1(b), 5.1(c), 5.1(f), 5.1(i),
5.1(l), 6.1(k) and 6.2(a)(vii)) shall
      be provided by the
      Borrower on or before the Closing Date, in form and substance satisfactory
      to
      the Administrative Agent and upon the Borrower’s delivery of such Schedules to
      the Administrative Agent, the Administrative Agent shall include such Schedules
      in this Agreement as if such Schedules had been included on the date
      hereof.

     

    The
      Notice of Borrowing submitted by the Borrower hereunder shall constitute a
      representation and warranty by the Borrower that, as of the date of such notice
      or request and as of the Closing Date, the conditions in this Section shall
      be
      satisfied on or before (in which event, they shall continue to be satisfied
      on)
      the Closing Date.

     

    SECTION
      4.2 Satisfaction of Conditions Precedent. Each
      Lender shall be deemed to have agreed to and accepted each document and opinion,
      and to have approved or accepted each other matter, delivered in connection
      with
Section 4.1 unless such Lender notifies the Administrative Agent in
      writing that it does not so agree with or accept such document, opinion or
      other
      matter before making the amount of its Loan available to the Administrative
      Agent.

     

     

    ARTICLE
      V

    REPRESENTATIONS
      AND WARRANTIES

     

    SECTION
      5.1 Representations and Warranties. Each Credit
      Party (with respect to itself and each of its Subsidiaries) makes all of the
      representations and warranties in this Article to and in favor of the Financing
      Parties as of the Closing Date, except to the extent any of such representations
      or warranties specifically relate to an earlier date (in which case they shall
      have been true and correct on and as of such earlier date); it being
      understood that the following representations and warranties are made as if
      the Existing Credit Agreement (which is to be fully repaid on the Closing Date
      from the proceeds of the Loans and otherwise terminated as provided in
Section 2.3) and any security document and other related document
      into entered in connection therewith did not exist.

     

    

    
      
        
          
          

        

        
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            Credit Agreement 37

          
            

          

        

        
          
          

        

      

    

    

    

    (a)
      Organization. Each Credit Party is a corporation or other entity duly
      organized and validly existing under the laws of its jurisdiction of
      organization. Each Credit Party is duly authorized and qualified to do business
      in each jurisdiction in which it owns or leases Property or in which the conduct
      of its business requires it so to qualify, except where the failure so to
      qualify, individually or in the aggregate, could not reasonably be expected
      to
      result in a Material Adverse Change. Each Credit Party has the requisite power
      and authority to own or lease and operate its Properties, to carry on its
      business, to borrow money and to execute, deliver and perform each Transaction
      Document to which it is or will be a party.

     

    (b)
      Authority and Consents.

     

    (i)
      The
      execution, delivery and performance by each Credit Party of each Financing
      Document to which it is or will be a party, and the transactions contemplated
      thereby, and the Acquisition: (A) have been duly authorized by all necessary
      corporate action (including any necessary equityholder or similar action),
      (B)
      will not breach, contravene, violate, conflict with or constitute a default
      under: (1) any of its Organizational Documents, (2) any Applicable Law or (3)
      any material contract, loan, agreement, indenture, mortgage, lease or other
      document or requirement to which it is a party or by which it or any of its
      Properties may be bound or affected, including all material Governmental
      Approvals and the Transaction Documents, and (C) will not result in or require
      the creation or imposition of any Lien upon or with respect to any of the
      Properties or Capital Stock of any Credit Party.

     

    (ii)
      Each
      Financing Document: (A) has been duly executed and delivered by the applicable
      Credit Parties and (B) when executed and delivered by each of the other parties
      thereto will be the legal, valid and binding obligation of each applicable
      Credit Party, enforceable against such Credit Party in accordance with its
      terms
      (including with respect to any submission to jurisdiction and the choice of
      law
      specified therein), except as enforceability may be limited by applicable
concurso mercantil, quiebra, bankruptcy, insolvency,
      reorganization, moratorium or similar laws affecting creditors’ rights with
      respect to such Credit Party.

     

    (iii)
      No
      authorization, consent or approval of, or notice to or filing with, the SCT,
      the
      COFETEL, any other Governmental Authority or any other Person has been, is
      or
      will be required to be obtained or made: (A) for the Acquisition, (B) for the
      due execution, delivery, recordation, filing or performance by any Credit Party
      of any of the Financing Documents to which it is a party or any transaction
      contemplated by the Financing Documents or (C) for the exercise by any Financing
      Party of any of its rights under any Financing Document, except for: (1) the
      authorizations, consents, approvals, notices and filings listed on
Schedule 5.1(b), all of which have been duly obtained, taken, given
      or made and are in full force and effect, and (2) any authorization, approval,
      consent, notices or filings the failure of which to obtain, individually or
      in
      the aggregate, could not reasonably be expected to result in a Material Adverse
      Change.

     

    (iv)
      This
      Agreement and each of the other Transaction Documents are in proper legal form
      under the Applicable Law of México and New York for the enforcement

     

    

    
      
        
          
          

        

        
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            Credit Agreement 38

          
            

          

        

        
          
          

        

      

    

    

    thereof
      in each such jurisdiction and no related filings, registrations, recordings
      or
      Other Taxes are required to be made or paid in connection therewith other than
      any such filings, registrations, recordings or payments the failure of which
      to
      make, individually or in the aggregate, could not reasonably be expected to
      result in a Material Adverse Change.

     

    (v)
      To
      the knowledge of each Credit Party, there is no requirement for the Lead
      Arranger or any Financing Party to be licensed or qualified with any
      Governmental Authority of México or the United States of America solely by
      reason of the execution and performance of the Financing Documents.

     

    (c)
      Financial Condition.

     

    (i)
      The
      Financial Statements for the Borrower and its Subsidiaries delivered in
      accordance with Section 4.1(b) have been prepared in accordance with
      GAAP, are complete and correct in all material respects and fairly present
      the
      financial condition of the Borrower and its Subsidiaries as at the applicable
      dates and the results of their operations for the periods ended on such dates,
      subject, in the case of interim statements, to normal year-end audit
      adjustments.

     

    (ii)
      Except for Indebtedness disclosed in the Financial Statements for the Borrower
      and its Subsidiaries delivered in accordance with Section 4.1(b) and
      Indebtedness specifically identified in Schedule 5.1(c), as of the
      Closing Date no Credit Party has any Contingent Obligation, liability for Taxes,
      long-term commitment or outstanding Indebtedness of any kind, in the aggregate
      in excess of $1,000,000 (or its equivalent in any other currency).

     

    (iii)
      No
      event has occurred since December 31, 2005 and no condition exists that,
      individually or in the aggregate, has resulted in, or could reasonably be
      expected to result in, a Material Adverse Change (other than in respect of
      the
      Avantel Companies and their Subsidiaries).

     

    (d)
      Business of the Credit Parties. No Credit Party has conducted any
      business other than the Business.

     

    (e)
      Taxes and Reports. All Tax returns, reports and statements of each Credit
      Party required by any Applicable Law to be filed with any Governmental Authority
      have been duly and properly filed except to the extent the failure to file,
      individually or in the aggregate, could not reasonably be expected to result
      in
      a Material Adverse Change.  All such returns, reports and statements
      are complete and accurate in all material respects. All Taxes due or anticipated
      to become due in respect of each Credit Party, or any of their respective
      Properties, incomes or franchises, have been duly paid by, or have been
      adequately provided for in accordance with GAAP on the books of, such Credit
      Party other than those which, individually or in the aggregate, could not
      reasonably be expected to result in a Material Adverse Change. In addition,
      except as may be permitted by Section 6.1(e) or
6.2(a)(ii)(A), no Liens have been filed or registered, and no claims are
      being asserted (or, to the Credit Parties’ knowledge, threatened),

     

    

    
      
        
          
          

        

        
          Bredie
            Credit Agreement 39

          
            

          

        

        
          
          

        

      

    

    

    with
      respect to any such Taxes which, individually or in the aggregate, could
      reasonably be expected to result in a Material Adverse Change.

     

    (f)
      Ownership of Capital Stock. Except as set forth on
Schedule 5.1(f), no Credit Party owns or otherwise Controls any
      Capital Stock of, or has any other (legal or beneficial) interest in, any
      Capital Stock of any other Person, other than Capital Stock of public companies
      acquired in the ordinary course of business.

     

    (g)
      Investments. No Credit Party holds any Investment other than Investments
      permitted by Section 6.2(i).

     

    (h)
      Title to Assets; Liens. Each Credit Party has good and marketable title
      to all of the material Property purported to be owned by it, free and clear
      of
      all Liens, other than Permitted Liens, and holds such title and all of such
      Property in its own name and not in the name of any nominee or other Person.
      Each Credit Party is lawfully possessed of a valid and subsisting leasehold
      estate in and to all Property that it purports to lease, free and clear of
      all
      Liens, other than Permitted Liens, and holds such leaseholds in its own name
      and
      not in the name of any nominee or other Person (it being understood
      that Avantel Infraestructura subleases one floor of its office at Paseo de
      la
      Reforma No. 265). No Credit Party has created or is contractually bound to
      create any Lien on or with respect to any of its Properties, except for
      Permitted Liens, and no Credit Party is restricted by Applicable Law or its
      Organizational Documents from creating Liens on any of its
      Properties.

     

    (i)
      Governmental Approvals.

     

    (i)
      Schedule 5.1(i) contains a complete and accurate list of all
      Governmental Approvals necessary for the Acquisition, the conduct of the
      business of each Credit Party and the transactions effected by the Financing
      Documents (including right-of-way agreements). Each Credit Party has obtained
      all other necessary Governmental Approvals from, and has filed all required
      registrations, applications, tariffs, reports and other documents with, the
      SCT,
      the COFETEL and all other Governmental Authorities in accordance with the
      Material Concessions and all other Applicable Laws, except for such approvals
      or
      filings the failure of which to obtain or make, individually or in the
      aggregate, could not reasonably be expected to result in a Material Adverse
      Change. Each Material Concession and each such other Governmental Approval
      is
      valid and in full force and effect, is not subject to any conditions for
      effectiveness and is not subject to appeal or judicial challenge; and no event
      has occurred that, individually or in the aggregate, could reasonably be
      expected to: (A) result in the revocation, termination or adverse modification
      of the Material Concessions or the revocation, termination or material adverse
      modification of any such other Governmental Approval or (B) adversely affect
      any
      rights of any Credit Party under any Governmental Approval, and, in either
      case
      (of clause (A) and/or (B)) result in a Material Adverse Change.

     

    (ii)
      There is no proceeding pending or, to any Credit Party’s knowledge, threatened
      against the Borrower or any Subsidiary that, individually or in the aggregate,
      if determined adversely to the Borrower or such Subsidiary, could reasonably
      be
      expected to result in the rescission, termination or suspension of any
      Governmental

     

    

    
      
        
          
          

        

        
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    Approval
      set out in Schedule 5.1(i) other than any such proceeding that could
      not reasonably be expected to result in a Material Adverse Change.

     

    (j)
      Condition of Systems. All of the material Properties and systems of the
      Borrower and its Subsidiaries are in good repair, working order and condition,
      ordinary wear and tear excepted, and are in material compliance with all
      Applicable Laws and all Governmental Approvals (including the Material
      Concessions) except as could not, individually or in the aggregate, reasonably
      be expected to result in a Material Adverse Change.

     

    (k)
No
      Defaults; Adverse Restrictions. No Default or Unmatured Default exists or
      will exist immediately after the funding of the Loans. No default exists under
      or with respect to any of the Credit Parties’ contractual or other obligations
      in any respect that, individually or in the aggregate, has resulted in, or
      could
      reasonably be expected to result in, a Material Adverse Change.

     

    (l)
      Legal Proceedings. Except as set forth in Schedule 5.1(l),
      there is no: (i) injunction, writ, preliminary restraining order or any order
      of
      any nature issued by an arbitrator, court or other Governmental Authority in
      connection with the Acquisition or the transactions provided for herein or
      in
      any other Transaction Document or (ii) action, suit, other legal proceeding,
      arbitral proceeding, inquiry or investigation of or before any arbitrator,
      court
      or other Governmental Authority pending or, to any Credit Party’s knowledge,
      threatened, that, individually or in the aggregate, has resulted in, or could
      reasonably be expected to result in, a Material Adverse
      Change.  Notwithstanding anything herein to the contrary, the
      information contained in Schedule 5.1(l) is for informational
      purposes only and nothing herein shall be deemed to constitute an agreement
      or
      waiver by any of the Financing Parties to any consequences of the proceedings
      described therein (including any consequence that may result in a
      Default).

     

    (m)
      Compliance with Laws. The Borrower and each Subsidiary is in compliance
      in all material respects with the Federal Telecommunications Law, all other
      Applicable Laws, all Governmental Approvals (including the Material Concessions)
      and its Organizational Documents other than any such failure to comply that,
      individually or in the aggregate, could not reasonably be expected to result
      in
      a Material Adverse Change.

     

    (n)
      Environmental Matters. The Borrower and each Subsidiary has duly complied
      in all material respects with, and its business, operations, Property,
      leaseholds and other facilities are in all material respects in compliance
      with,
      all applicable Environmental Laws other than any such failure to comply that,
      individually or in the aggregate, could not reasonably be expected to result
      in
      a Material Adverse Change. The Borrower and each Subsidiary: (i) has received
      and will maintain all Governmental Approvals relating to, and (ii) has received
      no complaint, order, directive, claim, citation or notice by any Governmental
      Authority or any other Person alleging non-compliance with, any Environmental
      Law other than any such failure to maintain or to comply that, individually
      or
      in the aggregate, could not reasonably be expected to result in a Material
      Adverse Change.

     

    (o)
      Intellectual Property. Each Credit Party owns or has the right to use all
      patents, trademarks, permits, service marks, trade names, copyrights,
      franchises, formulas, licenses, 

     

    

    
      
        
          
          

        

        
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    other
      intellectual property rights and other rights with respect thereto, and has
      obtained assignment of all leases and other rights of whatsoever nature,
      necessary for the Network and the operation of its business as currently
      contemplated without any conflict with the rights of other Persons other than
      as, individually or in the aggregate, could not reasonably be expected to result
      in a Material Adverse Change. No product, process, method, substance, part
      or
      other material sold or employed or presently contemplated to be sold by or
      employed by any Credit Party infringes (or will infringe) upon any patent,
      trademark, permit, service mark, trade name, copyright, franchise, formula,
      license or other intellectual property right of any other Person other than
      as,
      individually or in the aggregate, could not reasonably be expected to result
      in
      a Material Adverse Change.

     

    (p)
      Solvency. Each Credit Party is Solvent and, after giving effect to the
      consummation of the transactions contemplated in the Financing Documents and
      the
      Term Credit Agreement, on a Consolidated Basis, will be and will continue to
      be
      Solvent.

     

    (q)
      Disclosure. All documents, reports or other information pertaining to any
      Credit Party, any Credit Party Affiliate or the Business that have been
      furnished in writing to the Lead Arranger and/or Financing Party by (or on
      behalf of) the Credit Parties (including: (i) the Information Memorandum, (ii)
      any application for the extensions of credit or guarantees provided for in
      the
      Financing Documents and (iii) the Financing Documents, including the Exhibits
      and Schedules attached thereto, but excluding any forecasts and projections),
      taken as a whole, are true and correct in all material respects and do not
      contain any material misstatement of fact or taken as a whole omit to state
      any
      fact necessary to make the statements contained therein not materially
      misleading. The projections delivered to the Administrative Agent and any other
      such written forecasts and projections were as of the time delivered based
      upon
      assumptions reasonably believed to be reasonable at the time made (it being
      understood that such projections are subject to significant uncertainties
      and contingencies, many of which are beyond the control of the Credit Parties,
      and that no assurance can be given that the projections will be
      realized).

     

    (r)
      Immunity. Each Credit Party is subject to civil and commercial law with
      respect to its Obligations, and the execution, delivery and performance of
      the
      Financing Documents by each Credit Party constitute private and commercial
      acts
      rather than public or governmental acts. No Credit Party nor any of their
      respective Properties have any immunity from suit, court jurisdiction,
      attachment prior to judgment, attachment in aid of execution of a judgment,
      set-off, execution of a judgment or from any other legal process with respect
      to
      the Obligations or any of their other respective agreements under the Financing
      Documents.

     

    (s)
      Pension Plans; Labor Matters.

     

    (i)
      No
      Credit Party nor any ERISA Affiliate has ever maintained or contributed to
      (or
      had an obligation to contribute to) any ERISA Plan. Each Non-U.S. Pension Plan,
      if any, has been maintained in substantial compliance with its terms and with
      the requirements of Applicable Law, and has been maintained, where required,
      in
      good standing with applicable Governmental Authorities. No Credit Party has
      incurred any obligation in connection with the termination of or withdrawal
      from
      any Non-U.S. Pension Plan. The present value of the accrued benefit liabilities
      (whether or not vested) under each Non-U.S. Pension Plan, if any, determined
      as
      of the end of the Credit Parties’ most recently-

     

    

    
      
        
          
          

        

        
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    ended
      Fiscal Year on the basis of actuarial assumptions, each of which is reasonable,
      did not exceed the current value of the assets of such Non-U.S. Pension Plan
      allocable to such benefit liabilities.

     

    (ii)
      All
      obligations of the Borrower and its Subsidiaries for payments with respect
      to
      any mandatory and additional employee benefit plans (including to the
Instituto Mexicano del Seguro Social (Mexican Social Security
      Institute) and Instituto del Fondo Nacional para la Vivienda de los
      Trabajadores (National Worker’s Housing Fund Institute)) and accrued
      payroll tax payments for their respective employees have been timely paid and
      properly reported in the Financial Statements required to be delivered hereunder
      except where the failure to make such payments, individually or in the
      aggregate, has not resulted in, and could not reasonably be expected to result
      in, a Material Adverse Change or create any Lien (other than Permitted
      Liens).

     

    (iii)
      The
      Borrower and its Subsidiaries have complied in all material respects with all
      Applicable Laws with respect to employment practices, including applicable
      health and safety regulations, and there is no charge or complaint alleging
      any
      material violation of any such Applicable Law against the Borrower or any
      Subsidiary pending or, to the Credit Parties’ knowledge, threatened (including
      by or before any federal or local labor board, any tribunal or the Comisión
      Nacional del Sistema de Ahorro para el Retiro (National Savings and
      Retirement System Commission)) other than non-compliance or violation that,
      individually or in the aggregate, could not reasonably be expected to result
      in
      a Material Adverse Change.

     

    (iv)
      There is no labor strike, request for representation, slowdown or stoppage
      actually pending or, to the Credit Parties’ knowledge, threatened against or
      affecting any of the Borrower and its Subsidiaries that, individually or in
      the
      aggregate, has resulted in, or could reasonably be expected to result in, a
      Material Adverse Change.

     

    (v)
      The
      Borrower and each Subsidiary has filed all forms, reports, statements, provider
      agreements, benefit plan descriptions, payor agreements, beneficiary materials
      and other documents (including those related to employee benefit plans) required
      to be filed by it with any Governmental Authority, including state and federal
      insurance and health regulatory authorities, except where the failure to file,
      individually or in the aggregate, has not resulted in, and could not reasonably
      be expected to result in, a Material Adverse Change.

     

    (t)
      Use of Proceeds; Margin Stock. The proceeds of the Loans shall be
      utilized to finance in part the Acquisition. No proceeds of any Loan shall
      be
      used to acquire any equity security of a class that is registered pursuant
      to
      Section 12 of the Securities Exchange Act of 1934. No Credit Party is
      engaged in the business of extending credit for the purpose of purchasing or
      carrying margin stock (within the meaning of Regulation U issued by the
      Board of Governors of the U.S. Federal Reserve System), and no proceeds of
      any
      Loan shall be used to purchase or carry any margin stock or to extend credit
      to
      others for the purpose of purchasing or carrying margin stock.

     

    

    
      
        
          
          

        

        
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    (u)
      Investment Company Act. No Credit Party is an “investment company,” or an
“affiliated person” of, or “promoter” or “principal underwriter” for, an
“investment company,” as such terms are defined in the Investment Company Act of
      1940. Neither the making of any Loan, nor the application of the proceeds or
      repayment thereof by any Credit Party, nor the consummation of the other
      transactions contemplated hereby will violate any provisions of such Act or
      any
      rule, regulation or order of the U.S. Securities and Exchange Commission
      thereunder.

     

    (v)
      Pari Passu. The Obligations of each Credit Party are and will be direct,
      unconditional, unsecured and unsubordinated obligations, and do rank and will
      rank at least pari passu with all other present and future senior
      unsecured and unsubordinated Indebtedness (including under the Term Credit
      Agreement), of such Credit Party.

     

     

    ARTICLE
      VI

    COVENANTS

     

    SECTION
      6.1 Affirmative Covenants. Each Credit Party
      hereby agrees that it shall (and shall cause each of its Subsidiaries to)
      perform and comply with each of the following:

     

    (a)
      Corporate Existence. Except as may be permitted by
Section 6.2(f)(ii), each Credit Party shall (and shall cause each of
      its Subsidiaries that are Restricted Subsidiaries to) preserve and maintain
      its
      corporate existence and obtain and maintain all Governmental Approvals necessary
      for the maintenance of its corporate existence and good standing, if applicable;
      provided that no Credit Party (other than the Borrower with respect to
      existence) or any of its Subsidiaries shall be required to preserve any such
      existence or Governmental Approvals if such Credit Party shall determine that
      the preservation thereof is no longer desirable in the conduct of the business
      of such Person, and that the loss thereof, individually or in the aggregate,
      could not reasonably be expected to result in a Material Adverse
      Change.

     

    (b)
      Governmental Approvals. The Credit Parties shall (and shall cause their
      Subsidiaries) at all times maintain in full force and effect the Material
      Concessions and each Credit Party shall obtain and maintain (and cause each
      of
      its Subsidiaries to obtain and maintain) all other Governmental Approvals
      necessary for: (i) the conduct of its business (except for such Governmental
      Approvals the failure to obtain and maintain, individually or in the aggregate,
      could not reasonably be expected to result in a Material Adverse Change) and
      (ii) the authorization, execution and delivery by each Credit Party of the
      Financing Documents to which it is a party, and the due performance of all
      of
      its obligations thereunder and the validity and enforceability thereof. Each
      Credit Party shall acquire, maintain and renew all rights, contracts, powers,
      exemptions, privileges, leases, lands and franchises and obtain and maintain
      all
      registrations, filings and declarations necessary for the performance of its
      obligations under the Financing Documents and material to the conduct of its
      business.

     

    (c)
      Compliance with Laws. Each Credit Party shall (and shall cause its
      Subsidiaries to) conduct its business in compliance with all Applicable Laws,
      including all relevant Governmental Approvals and Environmental Laws, except
      where any failure to comply, individually or in the aggregate, could not
      reasonably be expected to result in a Material Adverse 

     

    

    
      
        
          
          

        

        
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    Change,
      and except that any Credit Party or Subsidiary may, at its expense, contest
      by
      appropriate proceedings conducted in good faith the validity or application
      of
      any such Applicable Law so long as: (i) none of the Financing Parties or any
      Credit Party would be subject to any criminal liability for failure to comply
      therewith, (ii) all proceedings to enforce such Applicable Law against the
      Credit Parties and, if applicable, the Financing Parties shall have been duly
      stayed and (iii) the loss of such contest is not reasonably likely to result
      in
      the sale, forfeiture or loss of any of the Credit Parties’ Property (including
      the Material Concessions).

     

    (d)
      Maintenance of Properties, Etc. Each Credit Party shall maintain and
      preserve all of its material Properties that are necessary to the conduct of
      its
      business in good working order and condition, ordinary wear and tear excepted,
      and, from time to time, make or cause to be made all appropriate and proper
      repairs, renewals and replacements thereto in accordance with its prior
      practices, and keep all systems and equipment in compliance with any and all
      standards or rules (including compliance with technical standards and
      construction requirements and deadlines) imposed pursuant to any Applicable
      Law
      or the terms of any Material Document (including the Material Concessions),
      except where the failure to do so, individually or in the aggregate, would
      not
      result in a Material Adverse Change.

     

    (e)
      Payment of Taxes, Etc. Each Credit Party shall (and shall cause its
      Subsidiaries to) duly pay and discharge before they become overdue: (i) all
      material Taxes levied or imposed upon its Property, earnings or business, (ii)
      all material utility and governmental charges incurred in the ownership,
      operation, maintenance, use, occupancy and upkeep of its business and (iii)
      all
      material lawful claims and obligations that, if unpaid, might result in the
      imposition of a Lien upon its Property except, in each case, where the failure
      to pay or discharge, individually or in the aggregate, could not reasonably
      be
      expected to result in a Material Adverse Change and provided that any
      Credit Party may contest in good faith any such Taxes, charges, claims or
      obligations and, in such event, may permit the Taxes, charges, claims or
      obligations to remain unpaid during any period, including appeals, when any
      Credit Party is in good faith contesting the same and so long as: (A) adequate
      reserves shall have been established with respect to any such Taxes, charges,
      claims or obligations, accrued interest thereon and potential penalties or
      other
      costs relating thereto in accordance with applicable GAAP, or other adequate
      provision for payment thereof shall have been made, (B) such contest does not
      involve any risk of the sale, forfeiture or loss of any of the Credit Parties’
Property (including the Material Concessions) and (C) enforcement of the
      contested item shall be effectively stayed.

     

    (f)
      Maintenance of Insurance.  Each Credit Party shall procure and
      maintain in full force and effect at all times insurance policies with
      financially sound, responsible and reputable insurance companies in such amounts
      and covering such risks as is prudent in the good faith judgment of the officers
      of the Borrower, except where failure to obtain and maintain such insurance,
      individually or in the aggregate, could not reasonably be expected to result
      in
      a Material Adverse Change.

     

    (g)
      Financial Statements and Other Information. The Credit Parties shall at
      their sole cost furnish to the Administrative Agent (for further delivery to
      each Lender) each of the documents provided for below at the times specified
      below (all Financial Statements to be prepared on a Consolidated Basis except
      to
      the extent specifically provided otherwise below):

     

    

    
      
        
          
          

        

        
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    (i)
      Quarterly Statements. As soon as available and in any event within 45
      days after the end of each fiscal quarter (other than the last fiscal quarter
      of
      each Fiscal Year), the unaudited Financial Statements for the Borrower and
      its
      Subsidiaries prepared in accordance with GAAP.

     

    (ii)
      Annual Statements. Within 120 days after the end of each Fiscal Year,
      the audited consolidated annual Financial Statements for the Borrower and its
      Subsidiaries prepared in accordance with GAAP together with an unqualified
      opinion of the Auditors reporting thereon to the effect that such Financial
      Statements fairly present the financial condition of the Borrower and its
      Subsidiaries in accordance with GAAP.

     

    (iii)
      Officer’s Certificate. Each time the Financial Statements are required
      to be delivered under clause (i) or (ii), a certificate of an
      Authorized Officer of the Borrower: (A) certifying that: (1) such officer has
      made or caused to be made a review of the transactions and financial condition
      of the Credit Parties during the relevant period, (2) the Financial Statements
      fairly present the financial condition of the Credit Parties as at the end
      of,
      and for, the relevant period in accordance with GAAP, subject to normal year-end
      audit adjustments, and (3) his/her review has not disclosed the existence of
      a
      Default or Unmatured Default at any time during the applicable fiscal period
      or,
      if any Default or Unmatured Default then exists or existed at any time during
      the applicable fiscal period, specifying the nature and period of existence
      thereof and what action the Credit Parties have taken and/or propose to take
      with respect thereto, and (B) setting out in reasonable detail the computations
      necessary to determine whether the Borrower is in compliance with
Sections 6.2(a), (b), (d), (e), (g),
(h), (i) and (o) as at the
      end of the relevant fiscal
      period.

     

    (iv)
      Communications with Governmental Authorities. Promptly (and in any
      event within ten Business Days) after receipt thereof, a copy of: (A) any notice
      from the SCT, the COFETEL or any other Governmental Authority of the imposition
      of any material fine, penalty or forfeiture (either individually or when taken
      together with other fines, penalties or forfeitures incurred), including any
      fine pursuant to Article 38 of the Federal Telecommunications Law, (B) any
      notice from the SCT or the COFETEL pursuant to Article 63 of the Federal
      Telecommunications Law and (C) any notice or request from the SCT, the COFETEL
      or any other Governmental Authority threatening any of the foregoing; and
      promptly (but in any event within 10 Business Days) after the delivery thereof,
      a copy of each material notice, report or other communication sent by a Credit
      Party to the SCT, the COFETEL or any other Governmental Authority.

     

    (v)
      Other information. Copies of all other annual or interim audit reports
      submitted to a Credit Party by the Auditors, copies of all financial reports
      and
      material notices sent by the Borrower or any other Credit Party to the lenders
      under the Term Credit Agreement (or any refinancing thereof) or to holders
      of
      notes issued by a Credit Party, copies of any Financial Statements and reports
      that the Borrower or any other Credit Party files with the Comisión Nacional
      Bancaria y de Valores or the SEC, when any Unrestricted Subsidiary exists,
      internally prepared reconciliations or adjustments to the financials for the
      Borrower and its Subsidiaries to show whether there is compliance with respect
      to the covenants of this Agreement relating to the Borrower and its Restricted
      Subsidiaries (excluding the Unrestricted Subsidiaries), and such other
      information and 

     

    

    
      
        
          
          

        

        
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    data
      with
      respect to the business, Properties, operations or condition of any Credit
      Party
      as either Agent may reasonably request.

     

    (h)
      Access to Records: Inspection. Each Credit Party shall, at all reasonable
      times (and upon at least 10 Business Days’ prior notice, unless a Default or
      Unmatured Default exists), give, or cause to be given, to any and all
      representatives of any Financing Party access during normal business hours
      to,
      and permit them to examine, copy and make extracts from, any and all records
      and
      documents in the possession or subject to the control of the Credit Parties
      relating to their respective Properties, operations and financial affairs,
      and
      to inspect any of their respective facilities or Properties, and to discuss
      the
      affairs, finances and accounts of the Credit Parties with any of their
      respective officers or directors and with the Auditors; provided that
      the Credit Parties shall not be obligated to: (i) permit the Administrative
      Agent (or such other Financing Party or Financing Parties as the Administrative
      Agent may specify) to perform any such examination more than once in any
      calendar year unless a Default or Unmatured Default exists, or (ii) make
      available any such records and documents (other than enforceable agreements
      to
      which any Credit Party is a party) to the extent that they: (A) are subject
      to
      confidentiality agreements with parties that are not Affiliate(s) of the Credit
      Parties and (B) are of a type of communication that is generally considered
      confidential by similar Persons in the ordinary course of business. The expenses
      of any such examination shall be borne by the examining Financing Parties unless
      a Default or Unmatured Default exists, in which event such expenses shall be
      borne by the Borrower.

     

    (i)
      Notice of Default and Other Matters. The Credit Parties shall promptly
      (but in any event within or five Business Days upon obtaining knowledge thereof)
      provide to the Administrative Agent (for further delivery to each Lender)
      written notice of:

     

    (i)
      any
      Default or Unmatured Default, describing such Default or Unmatured Default
      and
      any action being taken and/or proposed to be taken with respect to such Default
      or Unmatured Default,

     

    (ii)
      any
      litigation, arbitration, claim, investigation, proceeding or controversy pending
      or, to any Credit Parties’ knowledge, threatened in writing involving or
      affecting the Credit Parties: (A) involving an amount in excess of $10,000,000
      (or its equivalent in any other currency) individually or in the aggregate,
      (B)
      seeking any injunctive, declaratory or other equitable relief that, if granted,
      could reasonably be expected to result in a Material Adverse Change, (C) that
      could give rise to a Lien on any of their respective Properties, other than
      Permitted Liens or (D) that, individually or in the aggregate, has resulted
      in,
      or (if adversely determined) could reasonably be expected to result in, a
      Material Adverse Change,

     

    (iii)
      with respect to the Material Concessions or any other material Governmental
      Approval: (A) any material citation or order relating thereto, (B) any material
      suspension, revocation, rescission, materially adverse modification or
      termination thereof, (C) any alleged material breach or violation thereof by
      the
      Credit Parties or any other Person, (D) any material proceeding (including
      any
      material development in connection with the events described in
Schedule 5.1(l)) relating thereto and (E) any refusal of any Person
      to grant, renew or extend the same,

     

    

    
      
        
          
          

        

        
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    (iv)
      any
      casualty, damage or loss to the Property of the Credit Parties, whether or
      not
      insured, through fire, theft, other hazard or casualty in excess of $10,000,000
      (or its equivalent in any other currency) for any one casualty or loss or
      $10,000,000 (or its equivalent in any other currency) in the aggregate in any
      Fiscal Year,

     

    (v)
      the
      occurrence of any: (i) fire, explosion, flood, earthquake or “Act of God,” (ii)
      war, civil war, blockade or act of the public enemy or (iii) riot, strike,
      lockout or other labor dispute or industrial action, in each case that,
      individually or in the aggregate, has resulted in, or could reasonably be
      expected to result in, a Material Adverse Change,

     

    (vi)
      any
      proposed material change in the nature or scope of the business or operations
      of
      the Credit Parties taken as a whole other than any that constitutes part of
      the
      Business, and

     

    (vii)
      any
      other event or development that, individually or in the aggregate, has resulted
      in, or could reasonably be expected to result in, a Material Adverse
      Change.

     

    (j)
      Release Documentation

     

    (i)
      Within ten Business Days after the Closing Date, the Credit Parties shall
      provide evidence to the Administrative Agent of the execution by the
      administrative agent and/or the collateral agent under the Existing Credit
      Agreement of the Release Documentation whether notarized or otherwise required
      in order to effect the release of the Existing Liens (including the cancellation
      of any endorsements of any insurance policies in favor of the administrative
      agent and/or collateral agent under the Existing Credit Agreement).

     

    (ii)
      Each
      Credit Party shall make (or cause the collateral agent under the Existing Credit
      Agreement to make) all filings regarding the Release Documentation with the
      applicable registration office (including without limitation, to the extent
      applicable, the RPPC, the Telecommunications Registry (Registro de
      Telecomunicaciones) maintained by COFETEL and the Mexican Institute of
      Industrial Property (Instituto Mexicano de Propiedad Industrial) as may
      be required to release the  Existing Liens no later than January 15,
      2007 (or such later date as the Administrative Agent may approve), and provide
      evidence of registration of such release through the delivery of a no-lien
      certificate or similar certificate, issued by the relevant registration office
      within 120 days from the filing of such Release Documentation with such
      registration office.

     

    (k)
      Material Documents; Etc.  Each Credit Party shall
      (and shall cause its Subsidiaries to): (A) perform and observe in all material
      respects all of its covenants and obligations contained in each of the Material
      Documents to which it is a party and (B) except to the extent considered
      imprudent in the reasonable judgment of the applicable Credit Party or
      Subsidiary, enforce against the relevant Person each material covenant or
      obligation under any Material Document to which it is a party in accordance
      with
      its terms.

     

    (l)
      Use of Proceeds. All proceeds of the Loans shall be used as provided in
Section 5.1(t).

     

    

    
      
        
          
          

        

        
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    (m)
      Insurance Proceeds. If any Credit Party receives any amount in respect of
      any proceeds of insurance in excess of $100,000 as a result of any loss or
      damage to any of the Credit Parties’ Property, then unless such Credit Party
      applies such proceeds to the payment of the costs of repairing, restoring or
      rebuilding the portion of such Property that was the subject of such loss or
      damage or otherwise invests such proceeds in the Business within six months
      after the receipt of such proceeds, then such Credit Party shall apply such
      proceeds to the payment of its Indebtedness (including Indebtedness hereunder
      and under the Term Credit Agreement).

     

    (n)
      Expropriation Event. If an Expropriation Event shall occur with respect
      to the Borrower’s or any Restricted Subsidiary’s Property, then the Borrower or
      such Restricted Subsidiary, as the case may be, shall: (i) promptly (but in
      any
      event within five Business Days) upon discovery or receipt of notice of any
      occurrence thereof provide written notice to the Agents, (ii) diligently pursue
      all of its rights to compensation against the relevant Governmental Authority
      in
      respect of such Expropriation Event, and (iii) not, without the written consent
      of the Required Lenders, compromise or settle any claim with or against such
      Governmental Authority.  Nothing in this paragraph shall be deemed to
      impair any rights any Financing Party may have with respect to any such
      Expropriation Event.

     

    (o)
      Pension Plans. Each Non-U.S. Pension Plan (if any) shall be maintained in
      substantial compliance with its terms and with the requirements of all
      Applicable Laws. All contributions required to be made with respect to a
      Non-U.S. Pension Plan shall be timely made. No Credit Party shall incur any
      obligation in connection with the termination of or withdrawal from any Non-U.S.
      Pension Plan. The present value of the accrued benefit liabilities (whether
      or
      not vested) under each Non-U.S. Pension Plan (if any) determined as of the
      end
      of each Fiscal Year, on the basis of reasonable actuarial assumptions, shall
      not
      exceed the current value of the assets of such Non-U.S. Pension Plan allocable
      to such benefit liabilities. The Borrower and its Subsidiaries shall comply
      with
      all Applicable Laws relating to social security.

     

    (p)
      License Marks. Each Credit Party shall preserve or renew all of its
      registered patents, trademarks, permits, service marks, trade names, copyrights,
      franchises, formulas, licenses and other intellectual property, and rights
      to
      use the foregoing, the non-preservation or non-renewal of which, individually
      or
      in the aggregate, could reasonably be expected to result in a Material Adverse
      Change.

     

    (q)
      Pari Passu. Each Credit Party shall take all actions to ensure that at
      all times the Obligations constitute unconditional general obligations ranking
      at least pari passu in all respects with all present and future other
      senior unsecured and unsubordinated obligations of such Credit
      Party.

     

    (r)
      Further Assurances. Each Credit Party shall do and perform, from time to
      time, any and all acts (and execute any and all documents) as may be necessary
      or as reasonably requested by any Financing Party in order to effect the
      purposes of the Financing Documents.

     

    (s)
      Ratings.  The Borrower shall use commercially reasonable
      efforts to maintain a corporate rating from at least two of S&P, Moody’s and
      Fitch.

     

    

    
      
        
          
          

        

        
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            Credit Agreement 49

          
            

          

        

        
          
          

        

      

    

    

    SECTION
      6.2 Negative Covenants. Each Credit Party hereby
      agrees that it shall (and shall cause each of its Subsidiaries to) perform
      and
      comply with each of the following:

     

    (a)
      Liens. No Credit Party shall, or shall permit any of its Subsidiaries
      that are Restricted Subsidiaries to, create, incur, assume or otherwise permit
      to exist any Lien on any of its Properties of any character (including accounts
      receivable and bank accounts), whether now owned or hereafter acquired, or
      on
      any proceeds or income therefrom, or sign any security agreement authorizing
      any
      secured party thereunder to file any financing statement, record any Lien or
      take any similar action, or assign for security any accounts receivable or
      any
      other right to receive income, except for the following (each a “Permitted
      Lien”):

     

    (i)
      any
      Liens to secure the Obligations,

     

    (ii)
      such
      of the following as to which no enforcement, collection, execution, levy or
      foreclosure proceeding shall have been commenced: (A) Liens for Taxes to the
      extent not required to be paid under Section 6.1(e), (B)
      materialmen’s, mechanics’, carriers’, workmen’s and repairmen’s Liens and other
      similar Liens arising in the ordinary course of business securing obligations
      that are not overdue for a period of more than 90 days or are being contested
      in
      good faith, (C) pledges or deposits to secure obligations under workers’
compensation laws or similar legislation, (D) easements, rights-of-way and
      other
      encumbrances on title to real property that do not render title to the real
      property encumbered thereby unmarketable or materially adversely affect the
      use
      of such real property for its present purposes, (E) the interests of parties
      other than the Borrower and the Restricted Subsidiaries under certain
      right-of-way agreements and (F) setoff rights of deposit banks with respect
      to
      amounts on deposit in accounts of the Borrower and the Restricted Subsidiaries
      permitted under the Financing Documents,

     

    (iii)
      Liens on Property subject to Capital Leases or other equipment financing
      transactions entered into by the Borrower and the Restricted Subsidiaries after
      the Closing Date or Liens on Property acquired after the Closing Date by the
      Borrower and the Restricted Subsidiaries in favor of the vendor thereof to
      secure the Borrower’s or applicable Restricted Subsidiary’s, as the case may be,
      obligation to pay the balance of the purchase price thereof; provided
      that: (A) no such Lien may extend to any Property other than the Property (and
      any improvements thereon or thereto) held subject to such Capital Lease or
      other
      equipment financing transaction or acquired for such purchase price, as the
      case
      may be, (B) the aggregate principal amount of Indebtedness in respect of Capital
      Leases or the deferred purchase price of Property or services payable more
      than
      120 days after the furnishing of such Property or services secured by such
      Liens
      shall not exceed $30,000,000 (or its equivalent in any other currency) at any
      time outstanding, (C) after giving effect to such Indebtedness, the Borrower
      and
      the Restricted Subsidiaries are still in compliance with
clause (g)(iii), and (D) any such Indebtedness shall not otherwise
      be prohibited hereby (including by clause (b)),

     

    (iv)
      Liens on Customer Premises Equipment arising from the interests of the lessees
      of such equipment (including the right to acquire the leased property at the
      end
      of the lease term and the right of possession and quiet enjoyment),

     

    

    
      
        
          
          

        

        
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            Credit Agreement 50

          
            

          

        

        
          
          

        

      

    

    

    (v)
      the
      replacement, extension or renewal of any Lien permitted by any clause of this
      Section 6.2(a) upon or in the same Property theretofore subject thereto
      or the replacement, extension or renewal (without increase in the amount) of
      the
      Indebtedness secured thereby,

     

    (vi)
      Liens granted by a Credit Party to another Credit Party pursuant to any joint
      venture agreements,

     

    (vii)
      the
      Existing Liens (to be released as provided herein) and Liens granted by the
      Borrower or any Restricted Subsidiary (other than the Avantel Companies and
      the
      Subsidiaries of the Avantel Companies) in effect on the Closing Date and listed
      on Schedule 6.2(a)(vii),

     

    (viii)
      good faith deposits in connection with bids, tenders, contracts (other than
      for
      the payment of Indebtedness) or leases to which the Borrower or such Restricted
      Subsidiary is a party, or deposits to secure public or statutory obligations
      of
      the Borrower or such Restricted Subsidiary or deposits of cash or United States
      government bonds to secure surety or appeal bonds to which the Borrower or
      such
      Restricted Subsidiary is a party, or deposits as security for contested taxes
      or
      import duties or for the payment of rent, in each case incurred in the ordinary
      course of business,

     

    (ix)
      Liens in favor of issuers of surety bonds or letters of credit issued pursuant
      to the request of and for the account of the Borrower or such Restricted
      Subsidiary in the ordinary course of its business; provided,
however, that such letters of credit do not constitute
      Indebtedness,

     

    (x)
      minor
      survey exceptions, minor encumbrances, easements or reservations of, or rights
      of others for, licenses, rights-of-way, sewers, electric lines, telegraph and
      telephone lines and other similar purposes, or zoning or other restrictions
      as
      to the use of real property or Liens incidental to the conduct of the business
      of the Borrower or such Restricted Subsidiary or to the ownership of its
      Properties that were not Incurred in connection with Indebtedness and that
      do
      not in the aggregate materially adversely affect the value of such Properties
      or
      materially impair their use in the operation of the business of the Borrower
      or
      such Restricted Subsidiary,

     

    (xi)
      Liens on Property or shares of Capital Stock of any Person at the time such
      other Person becomes a Subsidiary of a Credit Party; provided,
however, that the Liens may not extend to any other Property owned
      by
      the Borrower or any Restricted Subsidiary (other than Property affixed or
      appurtenant thereto),

     

    (xii)
      Liens on Property at the time such Credit Party or any of its Subsidiaries
      acquires the Property, including any acquisition by means of a merger or
      consolidation with or into such Credit Party or a Subsidiary of such Credit
      Party; provided, however, that the Liens may not extend to any
      other Property owned by any Credit Party or any of its Subsidiaries (other
      than
      Property affixed or appurtenant thereto),

     

    

    
      
        
          
          

        

        
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            Credit Agreement 51

          
            

          

        

        
          
          

        

      

    

    

    (xiii)
      Liens securing Indebtedness or other obligations of a Subsidiary of such Credit
      Party owing to such Credit Party or a wholly-owned Subsidiary of the Borrower
      that is also a Guarantor,

     

    (xiv)
      Liens securing Permitted Hedging Obligations so long as: (A) such Permitted
      Hedging Obligations relate to Indebtedness that is secured by a Lien on the
      same
      Property securing such Permitted Hedging Obligations or (B) such Lien is with
      respect to the posting of cash or cash equivalents as collateral so long as
      such
      collateral is not required under the related Hedging Agreement unless such
      Permitted Hedging Obligations exceed 10% of the notional amount of the related
      hedging transaction,

     

    (xv)
      Liens in favor of customs and revenue authorities arising as a matter of law
      to
      secure payment of customs duties in connection with the importation of
      goods,

     

    (xvi)
      licenses of patents, trademarks and other intellectual property rights granted
      by the Borrower or any Restricted Subsidiary in the ordinary course of business
      and not interfering in any material respect with the ordinary conduct of the
      business of the Borrower or any Restricted Subsidiary,

     

    (xvii)
      pledges or deposits of cash and cash equivalents securing deductibles,
      self-insurance, co-payment, co-insurance, retentions or similar obligations
      to
      providers of property, casualty or liability insurance in the ordinary course
      of
      business,

     

    (xviii)
      Liens on insurance policies and the proceeds thereof securing the financing
      of
      the premiums with respect thereto,

     

    (xix)
      licenses, leases or subleases granted to third Persons or to the Borrower or
      its
      Subsidiaries by the Borrower and/or its Subsidiaries in the ordinary course
      of
      business and not interfering in any material respect with the business of any
      Credit Party or any of its Subsidiaries,

     

    (xx)
      other Liens securing, in the aggregate, less than $20,000,000 (or its equivalent
      in another currency) of Indebtedness, and

     

    (xxi)
      any
      Lien on any Property securing other Indebtedness permitted under clause
      (b); provided that the Obligations are also secured by a Lien on
      such Property on a senior or pari passu basis with respect to such
      other Indebtedness, in a manner satisfactory to the Administrative
      Agent.

     

    (b)
      Indebtedness. No Credit Party shall, or shall permit any of its
      Subsidiaries that are Restricted Subsidiaries to, incur, assume, guarantee,
      permit to exist or otherwise become liable for any Indebtedness;
provided that Indebtedness shall be permitted if: (i) the Borrower is
      and remains in compliance with the financial covenant set forth in
clause (g)(iii) (calculated, as applicable, on a pro forma
      basis for the four fiscal quarters most recently ended for which Financial
      Statements have been prepared as though such Indebtedness had been incurred
      at
      the beginning of such period), and (ii) the Consolidated Total Indebtedness
      to
      EBITDA Ratio does not and continues not to exceed 4.0x (calculated, as
      applicable, on a pro forma basis for the four

     

    

    
      
        
          
          

        

        
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            Credit Agreement 52

          
            

          

        

        
          
          

        

      

    

    

    fiscal
      quarters most recently ended for which Financial Statements have been prepared
      as though such Indebtedness had been incurred at the beginning of such
      period).

     

    (c)
No
      Alteration of Agreements or Organizational Documents. No Credit Party shall,
      or shall permit any of its Subsidiaries that are Restricted Subsidiaries to,
      cancel, terminate, permit the cancellation or termination of, amend, modify
      or
      change any material terms or conditions of, or grant (or receive) any material
      consent, waiver or approval under, or waive any default or any breach of any
      material term or condition of, or take or fail to take any other action that
      would impair the value of the interest or impair the rights of any Credit Party,
      any Restricted Subsidiary, the Administrative Agent or any other Financing
      Party
      under: (i) any of its Organizational Documents, or (ii) any Financing
      Document.

     

    (d)
      Restricted Payments. No Credit Party shall, or shall permit any of its
      Subsidiaries that are Restricted Subsidiaries to, make any Restricted Payment
      at
      any time; provided that:

     

    (i)
      the
      Borrower and any Restricted Subsidiary may make Restricted Payments to the
      Borrower or another Credit Party that is a wholly-owned Subsidiary of the
      Borrower or is wholly-owned by the Credit Party who is the recipient of such
      payment,

     

    (ii)
      the
      Borrower and any Restricted Subsidiary may pay dividends on its Capital Stock
      in
      the form of shares of additional Capital Stock so long as no Change of Control
      shall result from the payment of such share dividend,

     

    (iii)
      the
      Borrower may make Restricted Payments in respect of dividends or other payments
      on Capital Stock, repurchase of Capital Stock and payments on Permitted
      Subordinated Indebtedness in any Fiscal Year not in excess of its net income
      for
      the previous fiscal year so long as no Unmatured Default or Default then exists
      or would result therefrom,

     

    (iv)
      so
      long as no Default exists, the repurchase or other acquisition of Capital Stock
      of the Borrower or any Restricted Subsidiary from employees, former employees,
      directors or former directors of the Borrower or any Restricted Subsidiary
      (or
      permitted transferees of such employees, former employees, directors or former
      directors), pursuant to the terms of the agreements (including employment
      agreements) or plans (or amendments thereto) approved by the Board of Directors
      of the Borrower under which such individuals purchase or sell, or are granted
      the option to purchase or sell, shares of such Capital Stock; provided,
however, that the aggregate amount of such repurchases and other
      acquisitions (excluding amounts representing cancellation of Indebtedness)
      shall
      not exceed $5,000,000 (or its equivalent in any other currency) in any calendar
      year,

     

    (v)
      repurchases of Capital Stock may occur upon exercise of stock options if such
      Capital Stock represents a portion of the exercise price of such
      options,

     

    (vi)
      cash
      payments may be made in lieu of the issuance of fractional shares in connection
      with the exercise of warrants, options or other securities convertible into
      or
      exchangeable for Capital Stock of the Borrower, and

     

    

    
      
        
          
          

        

        
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            Credit Agreement 53

          
            

          

        

        
          
          

        

      

    

    

    (vii)
      other Restricted Payments may be made not to exceed $20,000,000 (or its
      equivalent in any other currency) in the aggregate.

     

    (e)
      Conduct of Business with Affiliates. No Credit Party shall, or shall
      permit any of its Subsidiaries that are Restricted Subsidiaries to, conduct
      any
      business with, or enter into any business transaction involving, any Affiliate
      thereof (other than among the Borrower and/or one or more wholly-owned
      Subsidiaries of the Borrower or between a Credit Party and another Credit Party
      that is a wholly-owned Subsidiary thereof, including pursuant to
clause (f)(i)) unless:

     

    (i)
      such
      business or transaction is: (A) in the ordinary course of such Credit Party’s
      (and such Affiliate’s) business and (B) upon fair and commercially reasonable
      terms no less favorable to such Credit Party than it could obtain in a
      comparable arm’s length transaction with a Person who is not an Affiliate,
      or

     

    (ii)
      such
      business or transaction constitutes: (A) an Investment permitted to be made
      pursuant to Section 6.2(i) or a Restricted Payment permitted to be made
      pursuant to Section 6.2(d), (B) an issuance of securities, or other
      payments, awards or grants in cash, securities or otherwise pursuant to, or
      the
      funding of, employment arrangements, stock options and stock ownership plans
      approved by the Board of Directors, (C) loans or advances to employees in the
      ordinary course of business in accordance with the past practices of the Credit
      Parties, but in any event not to exceed $2,000,000 (or its equivalent in any
      other currency) in the aggregate outstanding at any one time, (D) the payment
      of
      reasonable fees to directors of the Credit Parties who are not employees of
      the
      Credit Parties, (E) the issuance or sale of any Capital Stock (other than
      Disqualified Stock) of the Borrower, or (F) a transaction entered into in the
      ordinary course of business, consistent with past practices.

     

    (f)
      Sale of Assets; Mergers.

     

    (i)
      No
      Credit Party shall, or shall permit any of its Subsidiaries that are Restricted
      Subsidiaries to, sell, assign, transfer, convey, lease or otherwise dispose
      of
      any Property, or grant an option or any other right to purchase or otherwise
      acquire any Property, whether now owned or hereafter acquired, except that
      the
      Borrower and each Restricted Subsidiary may sell, assign, transfer, convey,
      lease or otherwise dispose of any Property: (x) in the Ordinary Course of
      Business; provided that no Material Adverse Change could reasonably be
      expected to occur as a result thereof, (y) to another Credit Party so long
      as
      such transaction is in compliance with clause (e), or (z) the net
      proceeds of which sale are applied to repay Indebtedness or are reinvested
      in
      the Borrower’s and Restricted Subsidiaries’ business within 180 days of receipt
      thereof.

     

    (ii)
      No
      Credit Party shall, or shall permit any of its Subsidiaries that are Restricted
      Subsidiaries to: (A) dissolve, liquidate or otherwise cease to do business
      (except as permitted in the proviso to Section 6.1(a)) or (B) merge into
      or consolidate with any Person or permit any Person to merge into or consolidate
      with it; provided that the Borrower or any Restricted Subsidiary may
      merge into or consolidate with the Borrower or another Restricted Subsidiary
      so
      long as such transactions are in compliance with

     

    

    
      
        
          
          

        

        
          Bredie
            Credit Agreement 54

          
            

          

        

        
          
          

        

      

    

    

    clause (e)
      and any Restricted Subsidiary may (so long as all of the Properties thereof
      are
      transferred to the Borrower or another Restricted Subsidiary in accordance
      with
clause (e)) be dissolved.

     

    (g)
      Financial Covenants. In each case calculated in accordance with GAAP, the
      Credit Parties shall not permit:

     

    (i)
      the
      Net Worth to be less than 80% of the Net Worth on the Closing Date after giving
      effect to the Acquisition as of the end of any fiscal quarter,

     

    (ii)
      the
      Consolidated EBITDA to Interest Ratio to be less than 3.0x as of the end of
      any
      fiscal quarter, commencing with the fiscal quarter ending September 30,
      2006, and

     

    (iii)
      the
      Consolidated Senior Indebtedness to EBITDA Ratio to be more than 3.0x as of
      the
      end of any fiscal quarter, commencing with the fiscal quarter ending
      September 30, 2006.

     

    (h)
      Accounts Receivable. No Credit Party shall, or shall permit any of its
      Subsidiaries that are Restricted Subsidiaries to, directly or indirectly, sell
      or factor any account receivable or other payment right, including in connection
      with any securitization or similar transaction, in an aggregate amount
      outstanding at any time in excess of $25,000,000. Each of the Borrower and
      the
      Restricted Subsidiaries shall keep accurate and complete records of the accounts
      receivable and other payment rights of the Borrower or such Restricted
      Subsidiary and deliver to the Administrative Agent such information about such
      accounts receivable and other payment rights as the Administrative Agent may
      reasonably request from time to time.

     

    (i)
      Investments. No Credit Party shall, or shall permit any of its
      Subsidiaries that are Restricted Subsidiaries to, make any Investment in any
      Person except:

     

    (i)
      extensions of trade credit to customers in the ordinary course of
      business,

     

    (ii)
      Permitted Investments,

     

    (iii)
      Investments in other Credit Parties,

     

    (iv)
      extensions of trade credit in the ordinary course of business,

     

    (v)
      Contingent Obligations permitted by clause (b),

     

    (vi)
      loans and advances to employees of the Borrower and the Restricted Subsidiaries
      pursuant to the ordinary course of business (including for travel, entertainment
      and relocation expenses) in an aggregate amount not to exceed $2,000,000 (or
      its
      equivalent in any other currency) at any one time outstanding,

     

    (vii)
      the
      Acquisition,

     

    (viii)
      Investments of the Borrower and the Restricted Subsidiaries existing on the
      Closing Date and any renewal or extension thereof, provided that the
      amount of the

     

    

    
      
        
          
          

        

        
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            Credit Agreement 55

          
            

          

        

        
          
          

        

      

    

    

    original
      Investment is not increased except by the terms of such Investment as in effect
      on the Closing Date or as otherwise permitted under this clause
      (i),

     

    (ix)
      Investments received in satisfaction or partial satisfaction of accounts
      receivable from financially troubled account debtors,

     

    (x)
      Investments in the ordinary course of business consisting of endorsements for
      collection or deposit,

     

    (xi)
      promissory notes and other non-cash consideration received in connection with
      asset sales,

     

    (xii)
      Investments of a Subsidiary acquired after the Closing Date or of a corporation
      merged into the Borrower or merged into or consolidated with a Subsidiary after
      the Closing Date to the extent that such Investments: (A) were not made in
      contemplation of or in connection with such acquisition, merger or consolidation
      and (B) were in existence on the date of such acquisition, merger or
      consolidation,

     

    (xiii)                      Permitted
      Acquisitions,

     

    (xiv)
      Investments in other Persons; provided that (with respect to this
clause (xiv)): (1) no Default or Unmatured Default shall exist at
      the time in which such Investment is made or would have existed if such
      Investment had been made as of the last day of the previous fiscal quarter,
      and
      (2) the aggregate amount of such Investments (calculated using the amount of
      the
      initial Investment in any such Person) shall not exceed $25,000,000 (or its
      equivalent in any other currency) plus the aggregate amount of cash
      dividends (excluding return of capital) received by the Credit Parties in
      connection with such Investments, and

     

    (xv)
      Investments in Permitted Joint Ventures/Partnerships.

     

    No
      Credit
      Party shall, or shall permit any of its Subsidiaries that are Restricted
      Subsidiaries to, become a partner in any general or limited partnership or,
      except with each other, otherwise enter into any partnership or joint venture
      arrangements, except for Permitted Joint Ventures/Partnerships.

     

    (j)
      Subsidiaries.

     

    (i)
      Neither the Borrower nor any Restricted Subsidiary shall establish, create
      or
      acquire any Subsidiary unless: (A) such new Subsidiary becomes a party to this
      Agreement as a Guarantor by executing a Subsidiary Joinder Agreement, or such
      new Subsidiary is designated by the Borrower in a writing delivered to the
      Administrative Agent and qualifies as an Immaterial Subsidiary or an
      Unrestricted Subsidiary under this clause (j), and (B) if applicable,
      replacement Notes are provided to each Lender in the manner required by
Section 2.2(b)(iv).

     

    (ii)
      Each
      Subsidiary that has been designated an Immaterial Subsidiary or an Unrestricted
      Subsidiary by the Borrower but at any time no longer qualifies as
      an

     

    

    
      
        
          
          

        

        
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            Credit Agreement 56

          
            

          

        

        
          
          

        

      

    

    

    Immaterial
      Subsidiary or an Unrestricted Subsidiary or has had its designation as an
      Immaterial Subsidiary or Unrestricted Subsidiary withdrawn by the Borrower
      pursuant to this clause (j) shall become a party to this Agreement as a
      Guarantor by executing a Subsidiary Joinder Agreement with and replacement
      Notes
      shall be provided to each Lender in the manner required by
Section 2.2(b)(iv).  A Subsidiary whose designation as an
      Immaterial Subsidiary or an Unrestricted Subsidiary has been withdrawn by the
      Borrower may not subsequently be redesignated an Immaterial Subsidiary or
      Unrestricted Subsidiary.

     

    (iii)
      The
      Credit Parties shall not permit at any time (A) the portion of Consolidated
      EBITDA of all Immaterial Subsidiaries to exceed 5% of the Consolidated EBITDA
      of
      the Borrower and its Subsidiaries for the four fiscal quarters most recently
      ended at the time of determination or (B) the aggregate assets held by all
      Immaterial Subsidiaries to exceed 5% of the consolidated assets of the Borrower
      and its Subsidiaries on a Consolidated Basis.  To comply with the
      foregoing, the Borrower may from time to time, by notice to the Administrative
      Agent, withdraw the designation of Immaterial Subsidiary from a formerly
      Immaterial Subsidiary such that the requirements of the preceding sentence
      are
      met at all times and in connection therewith shall cause such Subsidiary to
      become party to this Agreement as a Guarantor by executing a Subsidiary Joinder
      Agreement and cause replacement Notes to be provided to each Lender in the
      manner required by Section 2.2(b)(iv), provided that such
      redesignation shall not cause or result in an Unmatured Default or
      Default.

     

    (iv)
      The
      Credit Parties shall not permit at any time the portion of Consolidated EBITDA
      of all Unrestricted Subsidiaries to exceed 20% of the Consolidated EBITDA of
      the
      Borrower and its Subsidiaries on a Consolidated Basis for the four fiscal
      quarters most recently ended at the time of determination.  To comply
      with the foregoing, the Borrower may from time to time, by notice to the
      Administrative Agent, withdraw the designation of Unrestricted Subsidiary from
      a
      formerly Unrestricted Subsidiary such that the requirements of the preceding
      sentence are met at all times and in connection therewith shall cause such
      Subsidiary to become party to this Agreement as a Guarantor by executing a
      Subsidiary Joinder Agreement and cause replacement Notes to be provided to
      each
      Lender in the manner required by Section 2.2(b)(iv), provided
      that such redesignation shall not cause or result in an Unmatured Default or
      Default.

     

    (k)
      Ordinary Conduct of Business. No Credit Party shall, or shall permit any
      of its Subsidiaries that are Restricted Subsidiaries to: (i) engage in any
      business other than the Business, (ii) change its Fiscal Year or its method
      of
      determining its fiscal quarters or (iii) make or permit any material change
      in
      its accounting policies or reporting practices, except as required by a change
      in applicable accounting principles; provided that in the case of any
      such change, the Credit Parties shall promptly notify the Administrative Agent
      thereof and enter into such amendments of the financial ratios, definitions
      and/or related tests contained herein as the Required Lenders may reasonably
      request as a result of such change so as to preserve the intent of such
      provisions.

     

    (l)
      Sales and Transfers of Equity Interests. No Credit Party shall, or shall
      permit any of its Subsidiaries that are Restricted Subsidiaries to: (i) issue
      or
      sell any of its Capital Stock or

     

    

    
      
        
          
          

        

        
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    securities
      convertible into, or exercisable for, any of its Capital Stock or (ii) permit
      the transfer of its Capital Stock or securities convertible into, or exercisable
      for, any of its Capital Stock, except: (A) for such issuances, sales or
      transfers that would not result in a Change of Control and (B) as may be
      permitted by clause (d).

     

    (m)
      Limitation on Restrictions on Distributions from
      Subsidiaries.  No Credit Party shall, or shall permit any of its
      Subsidiaries to, create or otherwise cause or permit to exist or become
      effective any consensual encumbrance or restriction on the ability of any
      Subsidiary to: (i) pay dividends or make any other distributions on its Capital
      Stock to any Credit Party or pay any Indebtedness owed to any Credit Party,
      (ii)
      make any loans or advances to any Credit Party or (iii) transfer any of its
      Property to any Credit Party, except:

     

    (A)
      with respect to clauses (i),
(ii) and (iii)

     

    (1)
      any
      encumbrance or restriction pursuant to an agreement in effect at or entered
      into
      on the Closing Date,

     

    (2)
      any
      encumbrance or restriction with respect to a Subsidiary pursuant to an agreement
      relating to any Indebtedness incurred by such Subsidiary on or prior to the
      date
      on which such Subsidiary was acquired by the Borrower (other than Indebtedness
      incurred as consideration in, or to provide all or any portion of the funds
      or
      credit support utilized to consummate, the transaction or series of related
      transactions pursuant to which such Subsidiary became a Subsidiary or was
      acquired by the Borrower) and outstanding on such
      date,

     

    (3)
      any
      encumbrance or restriction pursuant to an agreement effecting a Permitted
      Refinancing of Indebtedness incurred pursuant to an agreement referred to in
      clause (1) or (2) or this clause (3) or contained in any
      amendment to an agreement referred to in clause (1) or (2) or this
clause (3); provided, however, that the encumbrances
      and restrictions with respect to such Subsidiary contained in any such
      refinancing agreement or amendment are no less favorable to the Lenders than
      encumbrances and restrictions with respect to such Subsidiary contained in
      such
      predecessor agreements, and

     

    (4)
      any
      encumbrance or restriction with respect to a Subsidiary imposed pursuant to
      an
      agreement entered into for the sale or disposition of all or substantially
      all
      the Capital Stock or Property of such Subsidiary pending the closing of such
      sale or disposition, and

     

    (B)  with
      respect to
clause (iii) only,

     

    (1)
      any
      encumbrance or restriction consisting of customary nonassignment provisions
      in
      leases governing leasehold interests to the extent such provisions restrict
      the
      transfer of the lease or the Property leased thereunder, and

     

    (2)
      any
      encumbrance or restriction contained in security agreements or mortgages
      securing Indebtedness of a Subsidiary to the extent such
      encumbrance

     

    

    
      
        
          
          

        

        
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    or
      restriction restricts the transfer of the Property subject to such security
      agreements or mortgages.

     

    (n)
      Permitted Hedging. No Credit Party shall, or shall permit any Subsidiary
      to, enter into any Hedging Agreement, except with respect to Permitting Hedging
      Obligations.

     

    (o)
      Permitted Fianzas and Letters of Credit.  No Credit Party
      shall, or shall permit any Subsidiary to, create, incur, assume or suffer to
      exist any Contingent Obligation in respect of fianzas or letters of
      credit in excess of $100,000,000 (or its equivalent in any other currency)
      at
      any one time outstanding.

     

    (p)
No
      Optional Repayment of Other Indebtedness for Borrowed Money.  No
      Credit Party shall, or shall permit any Subsidiary to, make any prepayment,
      payment, purchase, repurchase, defeasance or other acquisition or retirement
      for
      value, prior to maturity or required scheduled repayment, of any other
      Indebtedness for borrowed money (including under the Term Credit Agreement)
      of
      such Credit Party (other than in respect of the VAT Facility).

     

     

    ARTICLE
      VII

    DEFAULT/REMEDIES

     

    SECTION
      7.1 Default/Remedies. The occurrence of any of the
      following events or circumstances shall constitute a “Default”
hereunder:

     

    (a)
      (i)
      any Credit Party shall have failed to pay when due any principal payable
      pursuant to any Note or any other Obligation payable pursuant to this Agreement
      or any other Financing Document, in each case when the same becomes or shall
      be
      declared due and payable (whether at stated maturity, by acceleration or
      otherwise), or (ii) any Credit Party shall have failed to pay when due any
      interest payable pursuant to any Note or any other Obligation payable pursuant
      to this Agreement or any other Financing Document, in each case when the same
      becomes or shall be declared due and payable (whether at stated maturity, by
      acceleration or otherwise), which failure (in the case of clause (ii)) shall
      have continued unremedied for at least three Business Days after the date on
      which such payment is required to be made,

     

    (b)
      other
      than with respect to payments under the Financing Documents: (i) the Borrower
      or
      any Restricted Subsidiary shall default (as principal, guarantor or other
      surety) in the payment of any principal of, interest on, or premium, guaranty
      fees or other fees payable with respect to any credit-enhancement for, any
      Indebtedness or Contingent Obligation, which Indebtedness or Contingent
      Obligation is for a principal amount of at least $10,000,000 in the aggregate
      (or its equivalent in any other currency) (“Material Obligations”), and
      such default shall have continued for more than any applicable period of grace,
      (ii) any other event shall occur or condition shall exist in respect of any
      Material Obligation that results in (or permits the applicable creditor to
      cause) the acceleration of the Borrower’s or any Restricted Subsidiary’s
      obligation to pay all or any portion of such Material Obligations or (iii)
      any
      Material Obligation shall be required to be redeemed, purchased or defeased
      (or
      similarly satisfied) before its otherwise

     

    

    
      
        
          
          

        

        
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    scheduled
      payment date (or an offer to redeem, purchase or defease (or similarly satisfy)
      such Material Obligations shall be required to be made), in each case before
      the
      otherwise scheduled payment date,

     

    (c)
      any
      representation or warranty made by or on behalf of any Credit Party or any
      Credit Party Affiliate in this Agreement, any other Financing Document or any
      notice or other certificate, document, Financial Statement or other statement
      delivered pursuant hereto or thereto shall have been untrue or incorrect in
      any
      respect when made or deemed made,

     

    (d)
      any
      Credit Party shall have failed to observe or perform any term or covenant set
      forth in Section 6.1(a), (g),
(h),(i),(j),
(l)
      or (p) or in Section 6.2,

     

    (e)
      except as specifically provided in clauses (a), (b) and
(d), any Credit Party shall have failed to observe or
      perform any other
      agreement, covenant or provision contained in this Agreement, any other
      Financing Document or any document delivered pursuant hereto or thereto, and
      such failure (unless not capable of remedy in the reasonable opinion of the
      Required Lenders) shall have continued unremedied for at least 30 days after
      the
      earlier of: (i) such Credit Party’s receipt of written notice of the occurrence
      thereof or (ii) the date on which such Credit Party shall (or should) have
      obtained knowledge of such failure),

     

    (f)
      any
      Governmental Approval required: (i) to enable any Credit Party lawfully to
      enter
      into and perform its obligations under the Financing Documents to which it
      is a
      party, (ii) to enable any Credit Party to operate its business, (iii) to enable
      any Financing Party to exercise any of the rights expressed to be granted to
      it
      in the Financing Documents and/or (iv) to ensure the legality, validity,
      enforceability and/or admissibility in evidence in México and/or New York of any
      of the Financing Documents shall not be obtained or shall cease to be in full
      force and effect in any respect,

     

    (g)
      (i)
      any Transaction Document at any time and for any reason terminates or otherwise
      ceases to be in full force and effect (other than any scheduled expiration
      thereof), or any Transaction Document is declared to be void, or any Person
      shall issue a notice of termination under any Material Document;
provided that the termination of any Material Document or other failure
      of any such document to remain in full force and effect (or any such issuance
      of
      a notice thereof) shall not constitute a Default unless such event, individually
      or in the aggregate, has resulted in or could reasonably be expected to result
      in a Material Adverse Change; or (ii) any Credit Party or any other Person
      repudiates, or contests the validity or enforceability of, any Transaction
      Document to which it is a party,

     

    (h)
      any
      Expropriation Event shall occur,

     

    (i)
      with
      respect to the Borrower or any Restricted Subsidiary, either: (i) it shall
      commence a voluntary case, proceeding or other action: (A) under any Applicable
      Law of any jurisdiction, domestic or foreign, relating to bankruptcy,
      insolvency, reorganization, suspension of payments, concurso mercantil
      or relief of debtors seeking

     

    

    
      
        
          
          

        

        
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    to
      have
      an order for relief entered with respect to it or seeking to adjudicate it
      a
      bankrupt or insolvent or seeking reorganization, arrangement, adjustment,
      winding-up, liquidation, dissolution, composition or other relief with respect
      to it or its debts, or (B) seeking appointment of a receiver, trustee,
      liquidator, custodian, conservator, síndico, conciliador or other
      similar official of it or for any part of its Property, (ii) an involuntary
      case, proceeding or other action of a nature referred to in
clause (i) shall be commenced against it that shall: (A) result in
      the entry of an order for relief of any such adjudication or appointment or
      (B)
      not have been discharged within 60 days from the commencement thereof, (iii)
      an
      involuntary case, proceeding or other action shall be commenced against it
      that
      seeks issuance of a warrant of attachment, execution, distraint or similar
      process (excluding precautionary attachment) against any substantial part of
      its
      Property that shall result in the entry of an order for any such relief and
      shall not have been vacated, discharged, stayed or bonded pending appeal within
      60 days from the entry thereof, (iv) there shall be commenced against it any
      extra-judicial liquidation proceedings under any Applicable Law of any
      jurisdiction, which proceedings could reasonably be expected to result in its
      liquidation, (v) it shall admit in writing its inability to pay its debts as
      they become due, (vi) it shall make a general assignment for the benefit of
      its
      creditors or (vii) it shall take any corporate (or similar) action in
      furtherance of, or indicating its consent to, approval of or acquiescence in,
      any of the foregoing acts,

     

    (j)
      any
      court, other Governmental Authority or arbitrator shall enter against the
      Borrower or any Restricted Subsidiary: (i) a final non-payment judgment, decree
      or order that, individually or in the aggregate, has resulted in, or could
      reasonably be expected to result in, a Material Adverse Change or (ii) a final
      judgment, decree or order for the payment of money in an amount that, when
      aggregated with the amount of all other unsatisfied final judgments, decrees
      or
      orders against the Borrower and the Restricted Subsidiaries (collectively),
      exceeds $10,000,000 (or its equivalent in any other currency), and (in case
      of
      both clause (i) and (ii)) either: (A) such judgment, decree
      or order is not stayed or discharged within 45 days after entry thereof or
      (B)
      there shall be any period of at least 45 consecutive days during which a stay
      of
      enforcement of such judgment or order shall not be in effect,

     

    (k)
      a
      Change of Control shall occur,

     

    (l)
      the
      ownership or possession of Capital Stock of any Credit Party by any Person
      shall
      contravene the Foreign Investment Law,

     

    (m)
      the
      government of México, the SCT, the COFETEL or any other Governmental Authority
      shall: (i) commence a proceeding to revoke, terminate, withdraw or fail to
      renew
      a Material Concession or any other material Governmental Approval, (ii) issue
      an
      administrative resolution to revoke, terminate, materially suspend, materially
      and adversely modify, withdraw or fail to renew a Material Concession or any
      other material Governmental Approval or (iii) issue any other rule or decree
      resulting in the revocation, the termination, any suspension that is not
      partial, temporary and non-material, any material and adverse modification
      or
      the withdrawal of a Material Concession or any other material Governmental
      Approval; provided that, without limiting the generality of the
      foregoing, the issuance by the SCT of any or several

     

    

    
      
        
          
          

        

        
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    administrative
      notices, sanctions or actions pursuant to Article 38 of the Federal
      Telecommunications Law relating to any event described in paragraphs I, V,
      VI and VII thereof shall not constitute a Default under clauses (i),
(ii) or (iii) unless and until any such notice, action or sanction
      results in any of the events described in such clauses,

     

    (n)
      any
      change in or the withdrawal or modification of any Applicable Law occurs,
      including the imposition of applicable foreign exchange control regulations,
      that, individually or in the aggregate, in the reasonable opinion of the
      Required Lenders has resulted in, or could reasonably be expected to result
      in,
      a Material Adverse Change,

     

    (o)
      the
      Obligations shall cease to rank at least pari passu with the present
      and future senior unsecured and unsubordinated Indebtedness and Contingent
      Obligations of any Credit Party, or

     

    (p)
      there
      shall occur any governmental action: (i) asserting a general moratorium or
      (ii)
      changing or restricting the currency (or the conversion thereof) in which any
      Credit Party may pay its obligations.

     

    SECTION
      7.2 Acceleration. (a) If a Default specified in
Section 7.1(i) shall occur, automatically all Commitments
      shall
      immediately terminate and all Loans (with accrued interest thereon) and all
      other Obligations owing under the Financing Documents shall immediately become
      due and payable.

     

    (b)
      If
      any Default (other than a Default referred to in clause (a)) shall
      occur, then the Administrative Agent (acting at the direction of the Required
      Lenders) may by notice to the Borrower either: (i) declare the Lenders’
Commitments to be terminated, whereupon all Commitments of the Lenders shall
      immediately terminate, and/or (ii) declare any or all of the Loans, all accrued
      and unpaid interest thereon and all other Obligations owing under the Financing
      Documents to be due and payable, whereupon the same shall become immediately
      due
      and payable.

     

    (c)
      Except as expressly provided in this Section, presentment, demand, protest
      and
      all other notices of any kind are hereby expressly waived by each Credit Party
      with respect to the events and actions described in this Section.

     

    SECTION
      7.3 Rights Not Exclusive. The rights provided to
      the Financing Parties by the Financing Documents are cumulative and are not
      exclusive of any other rights, powers, privileges or remedies provided by law
      or
      in equity, or under any other document now existing or hereafter
      arising.

     

     

    ARTICLE
      VIII

    THE
      ADMINISTRATIVE AGENT

     

    SECTION
      8.1 Appointment and Authorization. Each Lender
      hereby irrevocably (subject to Section 8.9) appoints, designates and
      authorizes the Administrative Agent to take such action on its behalf under
      the
      Financing Documents and to exercise such powers and perform such

     

    

    
      
        
          
          

        

        
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    duties
      as
      expressly are delegated to it by the Financing Documents, together with such
      powers as are reasonably incidental thereto. Notwithstanding any provision
      to
      the contrary contained in any Financing Document: (a) the Administrative Agent
      shall not have any duties or responsibilities except those expressly set forth
      therein, (b) the Administrative Agent shall not have or be deemed to have any
      fiduciary relationship with any other Financing Party, (c) no implied covenants,
      functions, responsibilities, duties, obligations or liabilities shall be read
      into any Financing Document or otherwise exist against the Administrative Agent
      and (d) the Administrative Agent shall not be required to take any action that
      is contrary to any Applicable Law. Without limiting the generality of the
      foregoing sentence, the use of the term “agent” in this Agreement or any other
      Financing Document with reference to the Administrative Agent is not intended
      to
      connote any fiduciary or other implied (or express) obligations arising under
      agency doctrine of any Applicable Law. Instead, such term is used merely as
      a
      matter of market custom and is intended to create or reflect only an
      administrative relationship between independent contracting
      parties.

     

    SECTION
      8.2 Delegation of Duties.  The
      Administrative Agent may execute any of its respective duties under any
      Financing Document by or through agents, employees or attorneys-in-fact, and
      shall be entitled to advice of counsel concerning all matters pertaining to
      such
      duties. The Administrative Agent shall not be responsible for any degree of
      negligence or misconduct of any agent or attorney-in-fact that the
      Administrative Agent selects with reasonable care.

     

    SECTION
      8.3 No Liability of Agent-Related Persons. None of
      the Agent-Related Persons shall: (a) be liable for any action taken or omitted
      to be taken by any of them under or in connection with any Financing Document
      or
      the transactions contemplated thereby (except for such Person’s own gross
      negligence, bad faith, willful misconduct or breach of such Financing Agreement)
      or (b) be responsible in any manner to any of the Financing Parties or Credit
      Parties for: (i) any recital, statement, representation or warranty made by
      any
      of the Credit Parties or Credit Party Affiliates, or any officer thereof,
      contained in any Financing Document or in any certificate, report, statement
      or
      other document referred to or provided for in, or received by any Agent-Related
      Person under or in connection with, any Financing Document, (ii) the validity,
      effectiveness, genuineness, enforceability or sufficiency of any Financing
      Document (except as to such Agent-Related Person’s execution thereof) or (iii)
      any failure of any of the Credit Parties or any other party to any Financing
      Document to perform its obligations hereunder or thereunder. No Agent-Related
      Person shall be under any obligation to any Financing Party or Credit Party
      to
      ascertain or to inquire as to the observance or performance of any of the
      agreements contained in, or conditions of, any Financing Document, or to inspect
      the Properties, books or records of any of the Credit Parties or Credit Party
      Affiliates.

     

    SECTION
      8.4 Reliance by the Agent-Related Persons. Each
      Agent-Related Person shall be entitled to rely, and shall be fully protected
      in
      relying, upon any writing, resolution, notice, consent, certificate, affidavit,
      letter, facsimile or telephone message, statement or other document or
      conversation believed by it to be genuine and correct and to have been signed,
      sent or made by the proper Person(s), and upon advice and statements of legal
      counsel (including counsel to any of the Credit Parties), independent
      accountants and other experts selected by any Agent-Related Person. Each
      Agent-Related Person shall be fully justified in failing or refusing to take
      any
      action under any Financing Document unless it shall first receive such advice
      or
      concurrence of

     

    

    
      
        
          
          

        

        
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    the
      Required Lenders as it deems appropriate and, if it so requests, it shall first
      be indemnified to its satisfaction by the Lenders against any and all liability
      and expense that may be incurred by it by reason of taking or continuing to
      take
      any such action. Each Agent-Related Person in all cases shall be fully protected
      in acting, or in refraining from acting, under any Financing Document in
      accordance with a request or consent of the Required Lenders and such request
      and any action taken or failure to act under any Financing Document pursuant
      thereto shall be binding upon all of the Financing Parties.

     

    SECTION
      8.5 Notice of Default. (a) No Agent-Related Person
      shall be deemed to have knowledge or notice of the occurrence of any Default
      or
      Unmatured Default (except the Administrative Agent with respect to defaults
      in
      the payment of principal, interest and fees required to be paid to the
      Administrative Agent for the account of the applicable Lenders and/or the
      Administrative Agent) unless such Agent-Related Person shall have received
      written notice from a Financing Party or any of the Credit Parties referring
      to
      this Agreement, describing such Default or Unmatured Default and stating that
      such notice is a “notice of default” or similar statement. Such Agent-Related
      Person promptly shall notify each Lender of its receipt of any such notice
      and
      (in the case of the Administrative Agent) of the occurrence of any default
      in
      the payment of principal, interest or fees required to be paid to the
      Administrative Agent for the account of the applicable Lenders and/or the
      Administrative Agent. The Administrative Agent shall take such action with
      respect to such Default or Unmatured Default as may be requested by the Required
      Lenders in accordance with Article VII; provided that
      unless and until the Administrative Agent has received any such request and
      so
      notified the Lenders, the Administrative Agent may (but shall not be obligated
      to) take such action, or refrain from taking such action, with respect to such
      Default or Unmatured Default as it shall deem advisable or in the best interest
      of the Financing Parties.

     

    (b)
      Notwithstanding clause (a), each Agent-Related Person and each
      Lender shall use its best efforts to notify each Agent upon obtaining knowledge
      of any Default or Unmatured Default.

     

    SECTION
      8.6 Credit Decision. Each Lender acknowledges that
      none of the Agent-Related Persons has made any representation or warranty to
      it,
      and that no act by any Agent-Related Person hereinafter taken, including any
      review of the affairs of the Credit Parties and the Credit Party Affiliates,
      shall be deemed to constitute any representation or warranty by any
      Agent-Related Person to any Lender or other Agent-Related Person. Each Lender
      represents to the Administrative Agent and the Lead Arranger that it has,
      independently and without reliance upon any Agent-Related Person and based
      upon
      such documents and information as it has deemed appropriate, made its own
      appraisal of and investigation into the business, prospects, operations,
      Property, financial and other condition and creditworthiness of the Credit
      Parties, and all applicable bank regulatory laws relating to the transactions
      contemplated hereby, and made its own decision to enter into the Financing
      Documents to which it is a party and to extend credit to the Borrower
      thereunder. Each Lender also represents that it shall, independently and without
      reliance upon any Agent-Related Person and based upon such documents and
      information as it shall deem appropriate at the time, continue to make its
      own
      credit analysis, appraisals and decisions in taking or not taking action under
      the Financing Documents, and to make such investigations as it deems necessary
      to inform itself as to the business, prospects, operations, Property, financial
      and other condition and creditworthiness of the Credit Parties. Except
      for

     

    

    
      
        
          
          

        

        
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    notices,
      reports and other documents expressly herein or in the other Financing Documents
      required to be furnished to the Lenders by the Administrative Agent, no
      Agent-Related Person shall have any duty or responsibility to provide any Lender
      with any credit or other information concerning the business, prospects,
      operations, Property, financial and other condition or creditworthiness of
      the
      Credit Parties that may come into the possession of any of the Agent-Related
      Persons.

     

    SECTION
      8.7 Indemnification of Agent-Related Persons.
      Whether or not the transactions contemplated hereby are consummated, each Lender
      agrees to indemnify upon demand the Agent-Related Persons (to the extent not
      reimbursed by or on behalf of the Credit Parties and without limiting the
      obligation of the Credit Parties to do so), on the basis of such Lender’s
      ratable share from and against any and all Indemnified Liabilities; provided
that no Lender shall be liable for the payment to any Agent-Related
      Person
      of any portion of the Indemnified Liabilities to the extent a court of proper
      jurisdiction has delivered a final determination that such Indemnified
      Liabilities resulted from such Agent-Related Person’s gross negligence or
      willful misconduct. Without limitation of the foregoing, each Lender shall
      reimburse each Agent-Related Person upon demand for its ratable share of any
      costs or out-of-pocket expenses (including Attorney Costs) incurred by such
      Agent-Related Person in connection with the preparation, execution, delivery,
      administration, modification, amendment or enforcement (whether through
      negotiations, legal proceedings or otherwise) of, or legal advice in respect
      of
      rights or responsibilities under, any Financing Document or any document
      contemplated by or referred to therein to the extent that such Agent-Related
      Person is not reimbursed for such expenses by or on behalf of the Credit
      Parties. A Lender’s ratable share with respect to the Administrative Agent or
      the Lead Arranger or any Agent-Related Person related to the Administrative
      Agent or the Lead Arranger shall be such Lender’s Pro Rata Share. The
      undertaking in this Section shall survive the payment of all Obligations
      hereunder, the cancellation of all the Commitments and, as to any Agent-Related
      Person, the resignation or replacement of such Agent-Related
      Person.

     

    SECTION
      8.8 The Agent-Related Persons in Their Individual Capacity. Each
      Agent-Related Person may make loans to, issue letters of credit for the account
      of, accept deposits from, acquire equity interests in and generally engage
      in
      any kind of banking, trust, financial advisory, underwriting or other business
      with the Credit Parties and their Affiliates as though the Administrative Agent
      did not act in such capacity under the Financing Documents, without notice
      to or
      consent of the Lenders. The Lenders acknowledge that, pursuant to such
      activities, the Agent-Related Persons may receive information regarding the
      Credit Parties or their Affiliates (including information that may be subject
      to
      confidentiality obligations in favor of such Person) and acknowledge that no
      Agent-Related Person shall be under any obligation to provide such information
      to any Lender. With respect to its Loans, each Lender that also acts as the
      Administrative Agent under the Financing Documents shall have the same rights
      and powers under the Financing Documents as any other Lender and may exercise
      the same as though it were not the Administrative Agent thereunder.

     

    SECTION
      8.9 Successor Administrative Agent.

     

    (a)
      The
      Administrative Agent may, and at the request of the Required Lenders shall,
      resign as the Administrative Agent upon at least 30 days’ prior written notice
      to the Lenders. If

     

    

    
      
        
          
          

        

        
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    the
      Administrative Agent resigns under this Agreement, then the Required Lenders
      shall appoint from among the Lenders a successor agent who, unless a Default
      then exists, shall be reasonably acceptable to the Borrower. If no such
      successor agent is appointed before the date on which a retiring Administrative
      Agent’s resignation is to become effective in accordance with its notice of
      resignation, then such Administrative Agent may appoint, after consulting with
      the Lenders and the Borrower, a successor agent from among the Lenders who,
      unless a Default then exists, shall be reasonably acceptable to the Borrower.
      Upon the acceptance of its appointment as successor agent hereunder: (i) such
      successor agent shall succeed to all the rights (including as to the same fees),
      powers and duties of such retiring Administrative Agent, (ii) the term
“Administrative Agent” shall mean such successor agent and (iii) such retiring
      Administrative Agent’s appointment, powers and duties as such Administrative
      Agent shall be terminated. After any such retiring Administrative Agent’s
      resignation hereunder, this Article and Sections 10.4 and
10.5 shall inure to its benefit as to any actions taken or omitted
      to be
      taken by it while it was such Administrative Agent under the Financing
      Documents.

     

    (b)
      Any
      Person: (i) into which the Administrative Agent may be merged or consolidated,
      (ii) that may result from any merger, conversion or consolidation to which
      an
      Administrative Agent shall be a party or (iii) that may succeed to all or
      substantially all of the corporate trust business of the Administrative Agent
      shall be the successor of the Administrative Agent without the execution or
      filing of any instrument or any further act on the part of any of the parties
      hereto.

     

     

    ARTICLE
      IX

    GUARANTY

     

    SECTION
      9.1 Guaranty. (a) For good and valuable
      consideration, the receipt and sufficiency of which are hereby acknowledged,
      each Guarantor hereby, jointly and severally, as primary obligor and not merely
      as surety, unconditionally guarantees the full and punctual payment (whether
      at
      stated maturity, upon acceleration or otherwise) of the payment Obligations
      (howsoever created, arising or evidenced, whether direct or indirect, absolute
      or contingent, now or hereafter existing, or due or to become due) under the
      Financing Documents. Upon the failure by the Borrower to pay punctually any
      of
      its Obligations, the Guarantors (jointly and severally) shall immediately pay
      the amount not so paid. The obligations of the Guarantors under this Article
      shall constitute a guaranty of payment and not merely a guaranty of
      collection.

     

    (b)
      All
      payments by any Guarantor under this Article shall be payable in the manner
      required for payments by the Borrower hereunder, including: (i) the obligation
      to make all such payments free and clear of, and without deduction for, any
      Covered Taxes (including withholding taxes) in the manner provided in
Section 3.1 and (ii) the obligation to pay interest at the Default
      Rate.

     

    SECTION
      9.2 Guaranty Unconditional. The
      obligations of the Guarantors under this Article shall be unconditional and
      absolute and, without limiting the generality of the foregoing, shall not be
      released, discharged or otherwise affected by any reason,
      including:

     

    

    
      
        
          
          

        

        
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    (a)
      any
      extension, renewal, settlement, compromise, waiver or release in respect of
      any
      Obligation(s) and/or any Commitment(s) under the Financing Documents, by
      operation of law or otherwise,

     

    (b)
      any
      modification or amendment of or supplement to this Agreement or any other
      Financing Document,

     

    (c)
      any
      change in the existence, structure or ownership of the Borrower or any other
      Credit Party, or any event described in Section 7.1(i) with respect
      to any Person,

     

    (d)
      the
      existence of any claim, set-off or other rights that a Guarantor may have at
      any
      time against the Borrower, any other Credit Party, the Administrative Agent,
      any
      other Financing Party or any other Person, whether in connection herewith or
      any
      unrelated transactions,

     

    (e)
      any
      invalidity, irregularity or unenforceability relating to or against the Borrower
      or any other Credit Party for any reason of any Financing Document, or any
      provision of Applicable Law purporting to prohibit the payment by the Borrower
      or any other Credit Party of any of the Obligations, or

     

    (f)
      any
      other act or omission to act or delay of any kind by the Borrower and/or any
      other Credit Party, the Administrative Agent, any other Financing Party or
      any
      other Person or any other circumstance whatsoever that might, but for the
      provisions of this paragraph, constitute a legal or equitable discharge of
      (or
      defense against) the Obligations and the Guarantors’ obligations under this
      Article other than prior payment of the Obligations.

     

    SECTION
      9.3 Discharge only upon Payment in Full; Reinstatement in
      Certain Circumstances. The Guarantors’ obligations hereunder shall
      remain in full force and effect until all of the payment Obligations shall
      have
      been paid in full and all of the Commitments shall have terminated. If at any
      time any payment made under this Agreement or any other Financing Document
      is
      rescinded or must otherwise be restored or returned upon the insolvency,
      bankruptcy or reorganization of a Credit Party or any other Person or otherwise,
      then the Guarantors’ obligations hereunder with respect to such payment shall be
      reinstated at such time as though such payment had been due but not made at
      such
      time.

     

    SECTION
      9.4 Waiver by the Guarantors. (a) Each Guarantor
      hereby irrevocably and unconditionally waives, to the fullest extent permitted
      by Applicable Law: (i) notice of acceptance of the guaranty provided in this
      Article and notice of any liability to which this guaranty may apply, (ii)
      all
      notices that may be required by Applicable Law or otherwise to preserve intact
      any rights of any Financing Party against the Borrower and/or any other Credit
      Party, including any demand, presentment, protest, proof of notice of
      non-payment, notice of any failure on the part of the Borrower and/or any other
      Credit Party to perform and comply with any covenant, agreement, term, condition
      or provision of any agreement and any other notice to any other party that
      may
      be liable in respect of the Obligations guaranteed hereby (including the
      Borrower, any other Credit Party and any other guarantor thereof from time
      to
      time) except any of the foregoing as may be expressly required hereunder, (iii)
      any right to the enforcement,

     

    

    
      
        
          
          

        

        
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    assertion
      or exercise by any Financing Party of any right, power, privilege or remedy
      conferred upon such Person under the Financing Documents or otherwise, (iv)
      any
      requirement that any Financing Party exhaust any right, power, privilege or
      remedy, or mitigate any damages resulting from a default, under any Financing
      Document, or proceed to take any action against a Credit Party or any other
      Person under or in respect of any Financing Document or otherwise, or protect,
      secure, perfect or ensure any Lien on any collateral, and (v) the benefit of
      any
      statute of limitations affecting the Guarantors’ or any other Credit Party’s
      liability in respect of any of the payment Obligations, and each Guarantor
      agrees that any payment of any Obligation to the applicable Person and any
      other
      act that shall toll any statute of limitations applicable to the Obligations
      shall also operate to toll such statute of limitations applicable to such
      Guarantor’s liability under this Article.

     

    (b)
      Each
      Guarantor hereby further waives any right to which it may be entitled under
      Articles 2836, 2846, 2848 and 2849 of the Federal Civil Code (Código
      Civil Federal) of México and similar articles contained in the Civil Codes
      of the States of México and the Federal District. Each Guarantor further
      expressly waives the benefits of order, excusión and división
      contained in Articles 2814, 2815, 2817, 2818, 2820, 2821, 2822, 2823, 2839,
      2840, 2841 and other similar articles of the Federal Civil Code of México and
      similar articles contained in the Civil Codes of the States of México and the
      Federal District.

     

    SECTION
      9.5 Subrogation. Upon a Guarantor’s
      making payment with respect to any obligation under this Article, such Guarantor
      shall be subrogated to the rights of the payee against the Borrower (or the
      other obligor) with respect to such obligation; provided that such
      Guarantor shall not be a Financing Party and shall not enforce any payment
      by
      way of subrogation, indemnity or otherwise, or exercise any other right, against
      the Borrower (or such other obligor) so long as any Obligations (other than
      on-going but not yet incurred indemnity obligations) remain unpaid and/or any
      Commitments remain outstanding.

     

    SECTION
      9.6 Stay of Acceleration. If acceleration
      of the time for payment of any Obligations is stayed due to any event described
      in Section 7.1(i), then all such amounts otherwise subject to
      acceleration under this Agreement shall nonetheless be payable by the Guarantors
      hereunder.

     

     

    ARTICLE
      X

    MISCELLANEOUS

     

    SECTION
      10.1 Amendments and Waivers. No amendment or
      waiver of any provision of any Financing Document, and no consent with respect
      to any departure by any Credit Party therefrom, shall be effective unless the
      same shall be in writing and consented to by the Required Lenders and the other
      parties thereto, and then any such waiver or consent shall be effective only
      in
      the specific instance and for the specific purpose for which given;
provided that no such amendment, waiver or consent shall do any of the
      following unless approved by the indicated Lenders in writing (it being
      understood that no approval from any Lenders other than those indicated
      below shall be required):

     

    

    
      
        
          
          

        

        
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    (a)
      unless approved by each Lender, amend, modify or waive the definition of
“Required Lenders” or any provision of this Section,

     

    (b)
      unless approved by the applicable Lender, increase or extend the Commitment
      of
      such Lender,

     

    (c)
      unless approved by each Lender, postpone or reduce any scheduled payment of
      principal of, or any payment of interest on, the Loans (other than interest
      that
      accrues at the Default Rate pursuant to Section 2.6(c)) or any fees
      or other amounts payable in connection therewith,

     

    (d)
      unless approved by the applicable Lender, change the currency of payment of
      any
      Obligations to such Lender, or

     

    (e)
      unless approved by each Lender, reduce any Guarantor’s obligations under
Article IX with respect to the Lenders;

     

    and
      provided further that:

     

    (i)
      no
      amendment, waiver or consent shall, unless in writing and signed by the
      Administrative Agent in addition to the applicable Lender(s), affect the rights
      or duties of the Administrative Agent under any Financing Document,
      and

     

    (ii)
      the
      fee letter described in Section 2.7, may be amended, or rights or
      privileges thereunder waived, in a writing executed solely by the parties
      thereto.

     

    No
      Credit
      Party shall directly or indirectly pay or cause to be paid any remuneration
      in
      any manner whatsoever to any Lender as consideration for or as an inducement
      to
      the entering into by such Lender of any waiver or amendment of any of the
      Financing Documents unless such remuneration is concurrently paid ratably to
      each Lender even if any such Lender is not required to or did not consent to
      such waiver or amendment.

     

    SECTION
      10.2 Notices.

     

    (a)
      All
      notices, requests and other communications shall be in writing (including,
      unless the context expressly otherwise provides, by facsimile or other
      electronic transmission; provided that any document transmitted by any
      Credit Party by facsimile or other electronic transmission shall be followed
      promptly by delivery of a hard copy original thereof) and couriered, faxed
      or
      delivered to the address or facsimile number specified for notices on
Schedule 10.2, or, if directed to: (A) any Credit Party or the
      Administrative Agent, to such other address as shall be designated by such
      Credit Party or the Administrative Agent, as the case may be, in a written
      notice to the other parties hereto, and (B) any other Person, at such other
      address as shall be designated by such Person in a written notice to the
      Borrower and the Administrative Agent.

     

    (b)
      All
      such notices, requests and communications shall be effective: (i) if transmitted
      by facsimile, when transmitted by facsimile machine upon confirmation of
      receipt; provided that notices pursuant to Article II or
VIII to the Administrative Agent shall not be effective
      until

     

    

    
      
        
          
          

        

        
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    actually
      received by the Administrative Agent (including by electronic communication),
      or
      (ii) if delivered by courier (including by overnight courier), upon
      receipt.

     

    (c)
      Any
      agreement of the Financing Parties herein to receive certain notices by
      telephone or facsimile or other electronic transmission is solely for the
      convenience and at the request of the Credit Parties. The Financing Parties
      shall be entitled to rely upon the authority of any Person purporting to be
      a
      Person authorized by a Credit Party to give such notice and the Financing
      Parties shall not have any liability to any Credit Party or any other Person
      on
      account of any action taken or not taken by the Financing Parties in reliance
      upon such notice. The obligation of the Credit Parties to repay the Obligations
      shall not be affected in any way or to any extent by any failure by the
      Financing Parties to receive written confirmation of any telephonic or facsimile
      notice or the receipt by the Financing Parties of a confirmation that is at
      variance with the terms understood by the Financing Parties to be contained
      in
      the notice.

     

    (d)
      Notwithstanding the foregoing: (i) a Credit Party may, at its option, provide
      to
      the Administrative Agent all information, documents and other materials that
      it
      is obligated to furnish pursuant to the Financing Documents, including all
      notices, requests, financial statements, financial and other reports,
      certificates and other information materials, but excluding any such
      communication that: (A) relates to a request for a new, or a conversion of
      an
      existing, borrowing (including any election of an interest rate or interest
      period relating thereto), (B) relates to the payment of any principal or other
      amount due under the Financing Documents before the scheduled date therefor,
      (C)
      provides notice of any Default or Unmatured Default or (D) is required to be
      delivered to satisfy any condition precedent to the effectiveness of the
      Financing Documents and/or any borrowing thereunder (all such non-excluded
      communications being referred to herein collectively as
“Communications”), by transmitting the Communications in an
      electronic/soft medium to the Administrative Agent’s e-mail address specified by
      the Administrative Agent by written notice to such Credit Party (with respect
      to
      Communications to the Administrative Agent), and (ii) the Administrative Agent
      may, at its option, make the Communications or other information available
      to
      the Lenders by posting them on Intralinks or a substantially similar electronic
      transmission system (the “Platform”).

     

    (e)
      ANY
      PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE.” THE AGENT-RELATED PERSONS DO
      NOT WARRANT THE ACCURACY OR COMPLETENESS OF ANY NOTICES OR OTHER COMMUNICATIONS
      MADE AVAILABLE BY THE ADMINISTRATIVE AGENT, OR THE ADEQUACY OF THE PLATFORM,
      AND
      EXPRESSLY DISCLAIM LIABILITY FOR ERRORS OR OMISSIONS IN SUCH NOTICES AND
      COMMUNICATIONS. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY,
      INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE,
      NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE
      DEFECTS, IS MADE BY THE AGENT-RELATED PERSONS IN CONNECTION WITH THE PLATFORM
      OR
      THE NOTICES OR OTHER COMMUNICATIONS MADE AVAILABLE THEREBY. IN NO EVENT SHALL
      ANY AGENT-RELATED PERSON HAVE ANY LIABILITY TO THE CREDIT PARTIES, THE FINANCING
      PARTIES OR ANY OTHER PERSON FOR DAMAGES OF ANY KIND, INCLUDING DIRECT OR
      INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES, LOSSES OR EXPENSES
      (WHETHER IN TORT, CONTRACT OR OTHERWISE), ARISING OUT OF THE CREDIT

     

    

    
      
        
          
          

        

        
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    PARTIES’
      OR THE ADMINISTRATIVE AGENT’S TRANSMISSION OF NOTICES OR OTHER COMMUNICATIONS
      THROUGH THE PLATFORM, EXCEPT TO THE EXTENT THE LIABILITY OF ANY AGENT-RELATED
      PERSON IS FOUND IN A FINAL NON-APPEALABLE JUDGMENT BY A COURT OF COMPETENT
      JURISDICTION TO HAVE RESULTED FROM SUCH AGENT-RELATED PERSON’S GROSS NEGLIGENCE
      OR WILLFUL MISCONDUCT.

     

    (f)
      The
      Administrative Agent agrees that the receipt of the Communications by it at
      its
      e-mail address described above shall constitute effective delivery of the
      Communications to the Administrative Agent for purposes of the Financing
      Documents. Each Lender agrees that notice to it (as provided in the next
      sentence) specifying that the Communications and/or other notices have been
      made
      available to it on the Platform shall constitute effective delivery thereof
      to
      such Lender for purposes of the Financing Documents. Each Lender agrees: (i)
      to
      notify the Administrative Agent in writing (including by electronic
      communication) from time to time of such Lender’s e-mail address to which the
      foregoing notice may be sent by electronic transmission and (ii) that the
      foregoing notice may be sent to such e-mail address.

     

    SECTION
      10.3 No Waiver; Cumulative Remedies. No failure to
      exercise and no delay in exercising, on the part of the Administrative Agent,
      any Lender or any other Financing Party, any right, remedy, power or privilege
      under (or referred to in) any Financing Document shall operate as a waiver
      thereof; nor shall any single or partial exercise of any right, remedy, power
      or
      privilege under any Financing Document preclude any other or further exercise
      thereof or the exercise of any other right, remedy, power or
      privilege.

     

    SECTION
      10.4 Costs and Expense. The Borrower shall:

     

    (a)
      whether or not the transactions contemplated hereby are consummated, pay or
      reimburse any Agent-Related Person(s), promptly upon demand by such Person, for
      all reasonable and reasonably documented out-of-pocket fees, costs and expenses
      (including Attorney Costs) incurred by or charged to any such Person in
      connection with the preparation, execution, delivery, negotiation and
      syndication of the Financing Documents,

     

    (b)
      pay
      or reimburse the Administrative Agent, promptly upon demand by the
      Administrative Agent, for all reasonable and reasonably documented out-of-pocket
      fees, costs and expenses (including reasonable Attorney Costs) incurred by
      or
      charged to the Administrative Agent in connection with the modification,
      administration, waiver or amendment (in each case, whether or not consummated)
      of the Financing Documents (including in connection with any potential
      restructuring, renegotiations or workouts), and

     

    (c)
      pay
      or reimburse each Agent-Related Person and each Lender, promptly upon demand
      by
      any such Person, for all reasonably documented out-of-pocket fees, costs and
      expenses (including Attorney Costs) incurred by them in connection with: (i)
      the
      enforcement or preservation of any rights or remedies under any Financing
      Document and (ii) the protection or preservation of any right or claim of any
      such Person against the Credit Parties or any of their Affiliates arising out
      of
      any Financing Document.

     

    

    
      
        
          
          

        

        
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    SECTION
      10.5 Borrower Indemnification.

     

    (a)
      The
      Borrower shall, whether or not the transactions herein contemplated are
      consummated, indemnify each of the Financing Parties, the Lead Arranger and
      their respective Affiliates (and each of such Person’s officers, directors,
      employees, representatives and agents) (each an “Indemnified Person”)
      from and hold each of them harmless against any and all liabilities,
      obligations, losses, damages, penalties, claims, actions, judgments and suits
      and all documented costs (including reasonable and reasonably documented
      Attorney Costs), expenses and disbursements of any kind or nature whatsoever
      (the “Indemnified Liabilities”) incurred by any of them as a result of,
      or arising out of, or in any way related to, or by reason of, any investigation,
      litigation or other proceeding (whether or not any such Indemnified Person
      is a
      party thereto) related to the entering into and/or performance of any Financing
      Document or the use of the proceeds of any Loans or the consummation of any
      transactions contemplated in any Financing Document (including the reasonable
      and reasonably documented out-of-pocket Attorney Costs incurred in connection
      with any such investigation, litigation or other proceeding or in connection
      with enforcing this Section but excluding any such Indemnified Liabilities
      to
      the extent resulting directly and primarily by reason of the gross negligence,
      bad faith, willful misconduct or breach of a Financing Document of the
      Indemnified Person to be indemnified (or its officers, directors, employees,
      representatives, attorneys or agents) as found in a final, non-appealable
      judgment by a court of competent jurisdiction. Each Indemnified Party shall:
      (i)
      upon its becoming aware of any event that might result in the Borrower being
      required to perform any of its indemnity obligations hereunder, use reasonable
      efforts to promptly notify the Borrower (provided that failure so to
      notify the Borrower shall not mitigate the obligations of the Borrower
      hereunder), (ii) upon the Borrower’s request, consult with the Borrower
      regarding any step (including any step that may mitigate the effect of such
      event) it proposes to take in respect of such event and (iii) (unless an
      Unmatured Default or Default in respect of payment then exists) obtain the
      Borrower’s consent before entering into any settlement or compromise in relation
      to any such claims, actions or suits.

     

    (b)
      To
      the extent that any undertaking in clause (a) may be unenforceable
      because it is violative of any Applicable Law or public policy, the Borrower
      shall contribute the maximum portion that it is permitted to pay and satisfy
      under Applicable Law to the payment and satisfaction of such
      undertaking.

     

    (c)
      All
      such amounts and costs payable or indemnified under this Section shall be
      included in the Obligations and shall be immediately due and payable on
      demand.

     

    (d)
      The
      Borrower’s obligations hereunder and under Sections 3.1 and
10.4 shall survive the execution and delivery of the Financing
      Documents,
      the making and repayment of the Loans and (with respect to any applicable
      Indemnified Person) its resignation and/or removal.

     

    (e)
      To
      the fullest extent permitted by Applicable Law, each Credit Party agrees that
      it
      shall not assert, and hereby waives, any claim against any Indemnified Party
      on
      any theory of liability, for special, indirect, consequential or punitive
      damages (as opposed to direct or actual damages) arising out of, in connection
      with, or as a result of, this Agreement, any other Financing Document or any
      agreement or document contemplated hereby, the transactions contemplated hereby
      or thereby, any Loan and/or the use of the proceeds thereof.

     

    

    
      
        
          
          

        

        
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    SECTION
      10.6 Payments Set Aside. If any Credit Party (or
      any Person on its behalf) makes a payment to any Financing Party, or any
      Financing Party exercises its right of set-off, and such payment or the proceeds
      of such set-off or any part thereof subsequently are invalidated, declared
      to be
      fraudulent or preferential, set aside or required (including pursuant to any
      settlement entered into by such Financing Party in its discretion) to be repaid
      to such Credit Party (or such Person), a trustee, síndico, receiver or
      any other Person in connection with any insolvency proceeding or otherwise,
      then: (a) to the extent of such recovery, the obligation or part thereof
      originally intended to be satisfied shall be revived and continued in full
      force
      and effect as if such payment had not been made or such set-off had not
      occurred, and (b) each Lender severally agrees to pay to the Administrative
      Agent upon demand its Pro Rata Share of any amount so recovered from or repaid
      by the Administrative Agent.

     

    SECTION
      10.7 Successors and Assigns. This Agreement shall
      be binding upon and inure to the benefit of the parties hereto and their
      respective authorized successors and assigns, except that no Credit Party may
      assign or transfer any of its rights or obligations under this Agreement or
      any
      other Financing Document without the prior written consent of the Administrative
      Agent and the Required Lenders, any attempt to do so being null and void ab
      initio.

     

    SECTION
      10.8 Assignments, Participations, etc.

     

    (a)
      Assignments. Any Lender may, with the prior written consent of the
      Administrative Agent and (except during the existence of a Default) the
      Borrower, which consent(s) shall not be unreasonably withheld or delayed, at
      any
      time assign to one or more Persons that (unless a Default exists) are Eligible
      Assignees (provided that no written consent of the Borrower or the
      Administrative Agent shall be required in connection with any assignment by
      a
      Lender to an Eligible Assignee that is a Lender or an Affiliate of any Lender
      and that the Borrower will be deemed to have consented to an assignment if
      it
      fails to respond negatively to a written request for consent within ten Business
      Days of delivery of such request and provided, further, that
      it is acknowledged that it is reasonable for the Borrower to withhold its
      consent to an assignment to a competitor of the Borrower or to an Affiliate
      of a
      competitor of the Borrower) (each an “Assignee”) all, or any portion,
      of the Loans, the Commitment and the other rights and obligations of such Lender
      hereunder, in a minimum amount (or together with concurrent assignments to
      affiliated Eligible Assignees in an aggregate minimum amount ) of $5,000,000
      or
      a higher integral multiple of $1,000,000 (or, if less, all of such Lender’s
      remaining rights and obligations hereunder); provided that the Credit
      Parties and the Administrative Agent may continue to deal solely and directly
      with such Lender in connection with the interest so assigned to an Assignee
      until: (i) written notice of such assignment, together with payment
      instructions, addresses and related information with respect to the Assignee,
      shall have been given to the Borrower and the Administrative Agent by such
      Lender and/or its Assignee, (ii) such Lender and its Assignee shall have
      delivered via an electronic settlement system (or, if previously agreed with
      the
      Administrative Agent, manually) to the Administrative Agent a duly executed
      Assignment Agreement substantially in the form of Exhibit C (an
“Assignment Agreement”) together with the Note(s) subject to such
      assignment and (iii) such Lender or its Assignee shall have paid to the
      Administrative Agent a processing and recordation fee relating to such
      assignment in the amount of $3,500 (which fee may be waived or reduced in the
      sole discretion of the Administrative Agent). Notwithstanding the foregoing,
      no
      such assignment shall be allowed if it would require securities registration
      under any Applicable Law or if the assigner

     

    

    
      
        
          
          

        

        
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    thereof
      (if it is assigning less than all of its Loans and Commitments) would, after
      such assignment, have less than $5,000,000 in Loans and remaining
      Commitments.

     

    (b)
      Assignee as Lender. From and after the date that the Administrative Agent
      notifies the assignor Lender that it has received and provided its consent,
      and
      received (if such consent is applicable) the consent of the Borrower, with
      respect to an executed Assignment Agreement (and has received payment of the
      above-referenced processing fee): (i) the Assignee thereunder shall be a party
      hereto and, to the extent that rights and obligations hereunder have been
      assigned to it pursuant to such Assignment Agreement, shall have the rights
      and
      obligations of a Lender under the Financing Documents, and (ii) the assignor
      Lender shall, to the extent that rights and obligations under the Financing
      Documents have been assigned by it pursuant to such Assignment Agreement, be
      considered to have relinquished its rights and be released from its obligations
      under the Financing Documents.

     

    (c)
      Participations. Any Lender may at any time sell to one or more financial
      institution(s) or other Person(s) (each a “Participant”) participating
      interests in any Loans, the Commitment of such Lender and the other interests
      of
      such Lender (the “originating Lender”) under the Financing Documents;
provided that: (i) the originating Lender’s obligations under the
      Financing Documents shall remain unchanged, (ii) the originating Lender shall
      remain solely responsible for the performance of such obligations, (iii) the
      Credit Parties and the Administrative Agent shall continue to deal solely and
      directly with the originating Lender in connection with the originating Lender’s
      rights and obligations under the Financing Documents, (iv) no Lender shall
      transfer or grant any participating interest under which the Participant has
      rights to approve any amendment to, or any consent or waiver with respect to,
      any Financing Document, except to the extent such amendment, consent or waiver
      would require unanimous consent of the applicable Lenders as described in
Section 10.1, and (v) if such Participant does not satisfy the
      definition of an Eligible Assignee, the Borrower shall be liable for Taxes
      and
      Other Taxes to such Participant (or to the originating Lender on behalf of
      such
      Participant) in an amount no greater than the amount that it otherwise would
      have been so liable to the originating Lender (who for purposes hereof, will
      have been assumed to be in compliance with Section 3.1(c)). In the case
      of any such participation, the Participant shall be entitled to the benefit
      (subject to the requirements and limitations of such Sections) of
Sections 3.1 (except as set forth in clause (v) above),
3.3, 3.4 and 10.5 as though it were also a Lender
      hereunder, and if amounts outstanding under the Financing Documents are due
      and
      unpaid, or shall have been declared or shall have become due and payable upon
      the occurrence of a Default, each Participant shall be deemed to have the right
      of set-off in respect of its participating interest in amounts owing under
      the
      Financing Documents to the same extent as if the amount of its participating
      interest were owing directly to it as a Lender under this Agreement (including
      such rights under Section 10.10).  So long as no Default
      exists, an originating Lender shall provide at least ten Business Days’ prior
      notice to the Borrower (or such shorter notice period as the Borrower may
      approve) of any proposed participation to a proposed Participant that is not
      already a Lender, a Participant or an Affiliate of a Lender or a
      Participant.  So long as no Default exists, such originating Lender
      shall not enter into such proposed participation if the Borrower provides to
      such originating Lender, within ten Business Days after the Borrower’s receipt
      of the notice of such proposed participation, notice of the Borrower’s objection
      to the proposed participation to such proposed Participant on the basis that
      such proposed Participant is a competitor or an Affiliate of a competitor of
      the
      Borrower.

     

    

    
      
        
          
          

        

        
          Bredie
            Credit Agreement 74

          
            

          

        

        
          
          

        

      

    

    

    (d)
      Pledge to Federal Reserve Bank. Notwithstanding any other provision in
      this Agreement, any Lender may (without the consent of the Borrower or the
      Administrative Agent or prior notice to either) at any time create a security
      interest in, or pledge, all or any portion of its rights under and interest
      in
      this Agreement and any Note held by it in favor of any Federal Reserve Bank
      in
      accordance with Regulation A of the Federal Reserve Board or U.S. Treasury
      Regulation 31 CFR §203.14, and such Federal Reserve Bank may enforce
      such pledge or security interest in any manner permitted under Applicable Law;
      it being understood that no such security interest or pledge shall
      release any Lender from any of its obligations hereunder or shall substitute
      such Federal Reserve Bank as a party hereto.

     

    (e)
      Register.  The Administrative Agent, acting solely for this
      purpose as an agent of the Borrower, shall maintain at the Administrative
      Agent’s Payment Office a copy of each Assignment Agreement delivered to it and a
      register for the recordation of the names and addresses of the Lenders, and
      the
      Commitments of, and principal amounts of the Loans owing to, each Lender
      pursuant to the terms hereof from time to time (the
“Register”).  The entries in the Register shall be
      conclusive, and the Borrower, the Administrative Agent and the Lenders may
      treat
      each Person whose name is recorded in the Register pursuant to the terms hereof
      as a Lender hereunder for all purposes of this Agreement, notwithstanding notice
      to the contrary.  The Register shall be available for inspection by
      the Borrower and any Lender, at any reasonable time and from time to time upon
      reasonable prior notice.

     

    SECTION
      10.9 Set-off. In addition to any rights now or
      hereafter granted under Applicable Law or otherwise, and not by way of
      limitation of any such rights, if the Loans have been accelerated, each
      Financing Party is authorized at any time and from time to time, without
      presentment, demand, protest or other notice of any kind to any Credit Party
      or
      to any other Person (any such notice being waived to the fullest extent
      permitted by Applicable Law), to set off and appropriate and apply any and
      all
      deposits (general or special, time or demand, provisional or final) at any
      time
      held by, and other Indebtedness at any time owing by, such Financing Party
      (including by branches and agencies of any Financing Party) to or for the credit
      or the account of a Credit Party against and on account of any and all
      Obligations owing to such Financing Party, now or hereafter existing,
      irrespective of whether or not such Financing Party shall have made demand
      under
      any Financing Document and although such Obligations may be contingent or
      unmatured. Each Financing Party agrees promptly to notify the applicable Credit
      Party and the Administrative Agent after any such set-off and application made
      by such Financing Party; provided that the failure to give such notice
      shall not affect the validity of such set-off and application.

     

    SECTION
      10.10 Notification of Addresses, Lending Offices,
      Etc. Each Lender shall notify the Administrative Agent in
      writing of any change in: (a) the address to which notices to the Administrative
      Agent or such Lender should be directed, (b) addresses of any Lending Office,
      (c) payment instructions in respect of all payments to be made to it hereunder
      and (d) such other administrative information as the Administrative Agent
      reasonably requests.

     

    SECTION
      10.11 Counterparts. This Agreement may be executed
      in any number of separate counterparts, each of which, when so executed, shall
      be deemed an original, and all of which taken together shall be deemed to
      constitute but one and the same instrument.

     

    

    
      
        
          
          

        

        
          Bredie
            Credit Agreement 75

          
            

          

        

        
          
          

        

      

    

    

    SECTION
      10.12 Severability. The illegality or
      unenforceability in any jurisdiction of any provision of this Agreement or
      any
      document required hereunder shall not in any way affect or impair the legality
      or enforceability of the remaining provisions of this Agreement or such other
      document in such jurisdiction or such provision in any other jurisdiction.
      With
      respect to any such illegal or unenforceable provision in any jurisdiction,
      the
      parties hereto agree to as promptly as possible amend this Agreement (or such
      other document) in such a manner as to ensure that the substance of such
      provision shall be replaced (at least with respect to such jurisdiction) with
      alternative language having substantially equivalent effect that is legal and
      enforceable in such jurisdiction.

     

    SECTION
      10.13 Third Party Beneficiaries. This Agreement is
      made and entered into for the sole protection and legal benefit of the parties
      hereto, the other Agent-Related Persons, the Indemnified Persons and their
      permitted successors and assigns (all of which, if not parties hereto, are
      third-party beneficiaries hereof for purposes of enforcing their respective
      rights hereunder), and no other Person shall be a direct or indirect legal
      beneficiary of, or have any direct or indirect cause of action or claim in
      connection with, this Agreement.

     

    SECTION
      10.14 Governing Law and Jurisdiction. (a) THIS
      AGREEMENT AND THE NOTES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
      THE LAW OF NEW YORK (NOT INCLUDING SUCH STATE’S CONFLICT OF LAWS PROVISIONS
      OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW);
PROVIDED THAT THE FINANCING PARTIES SHALL RETAIN ALL RIGHTS ARISING
      UNDER U.S. FEDERAL LAW.

     

    (b)
      EACH
      PARTY HERETO HEREBY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE
      U.S. DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK AND ANY APPELLATE
      COURT WITH RESPECT THERETO (COLLECTIVELY, THE “FEDERAL COURTS”) (OR, IN
      THE EVENT THE FEDERAL COURTS ARE UNAVAILABLE, THE SUPREME COURT OF THE STATE
      OF
      NEW YORK, COUNTY OF NEW YORK AND ANY APPELLATE COURT WITH RESPECT THERETO (SUCH
      COURTS, TOGETHER WITH THE FEDERAL COURTS, THE “NEW YORK COURTS”)) AND
      TO THE COURTS OF ITS OWN CORPORATE DOMICILE IN RESPECT OF ACTIONS BROUGHT
      AGAINST IT AS A DEFENDANT OVER ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF
      OR
      RELATING TO THE FINANCING DOCUMENTS. EACH PARTY HERETO IRREVOCABLY WAIVES,
      TO
      THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW
      OR
      HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING
      BROUGHT IN ANY SUCH COURT, ANY CLAIM THAT ANY SUCH SUIT, ACTION OR PROCEEDING
      BROUGHT IN SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM AND ANY RIGHT
      TO
      WHICH IT MAY BE ENTITLED ON ACCOUNT OF PLACE OF RESIDENCE OR DOMICILE PURSUANT
      TO APPLICABLE LAW, AND FURTHER AGREES THAT A FINAL JUDGMENT IN ANY SUCH SUIT,
      ACTION OR PROCEEDING BROUGHT IN SUCH COURT WILL BE CONCLUSIVE AND BINDING UPON
      SUCH PARTY. EACH CREDIT PARTY IRREVOCABLY CONSENTS TO THE
      APPOINTMENT OF THE PROCESS AGENT AS ITS AGENT TO RECEIVE SERVICE OF PROCESS
      (WITH RESPECT TO ALL OF THE FINANCING DOCUMENTS AND ALL OTHER RELATED AGREEMENTS
      TO WHICH IT

     

    

    
      
        
          
          

        

        
          Bredie
            Credit Agreement 76

          
            

          

        

        
          
          

        

      

    

    

    IS
      A
      PARTY) IN NEW YORK, NEW YORK. EACH PARTY AGREES THAT A JUDGMENT IN ANY SUCH
      ACTION, SUIT OR PROCEEDING MAY BE ENFORCED IN ANY OTHER APPLICABLE JURISDICTION
      BY SUIT UPON JUDGMENT, A CERTIFIED COPY OF WHICH SHALL BE CONCLUSIVE EVIDENCE
      OF
      THE JUDGMENT. Each of the parties hereto further agrees that service of process
      may be made personally or (with respect to a Credit Party) by mailing or
      delivering a copy of the summons and complaint or other legal process in any
      such legal suit, action or proceeding to a Credit Party in care of the Process
      Agent and such agent is hereby authorized to accept, receive and acknowledge
      the
      same for and on behalf of each Credit Party and to admit service with respect
      thereto. Service upon the Process Agent shall be deemed to be personal service
      on the applicable Credit Party and shall be legal and binding upon the
      applicable Credit Party for all purposes notwithstanding any failure to mail
      copies of such legal process to the applicable Credit Party, or any failure
      on
      the part of the applicable Credit Party to receive the same. Nothing herein
      shall affect the right to serve process in any other manner permitted by
      Applicable Law or any right to bring legal action or proceedings in any other
      competent jurisdiction. Each party further agrees that the aforesaid courts
      shall have exclusive jurisdiction with respect to any claim or counterclaim
      of
      any party based upon the assertion that the rate of interest charged by or
      under
      this Agreement or under the other Financing Documents is usurious. Each party
      hereby waives any right to stay or dismiss any action or proceeding under or
      in
      connection with this Agreement or any other Financing Document brought before
      the foregoing courts on the basis of forum non conveniens and any
      rights that it may be entitled to on account of place of residence or domicile.
      The foregoing provisions constitute, among other things, a special arrangement
      for service among the parties to this Agreement for the purposes of 28 U.S.C.
      §1608.

     

    (c)
      Each
      Credit Party irrevocably waives, to the fullest extent permitted by Applicable
      Law, any claim that any action or proceeding commenced against it relating
      in
      any way to this Agreement and/or any of the other Financing Document(s) should
      be dismissed or stayed by reason, or pending the resolution, of any action
      or
      proceeding commenced by such Credit Party relating in any way to this Agreement
      and/or the other Financing Documents, whether or not commenced earlier. To
      the
      fullest extent permitted by Applicable Law, each Credit Party shall take all
      measures necessary for any such action or proceeding commenced against it to
      proceed to judgment before the entry of judgment in any such action or
      proceeding commenced by such Credit Party.

     

    (d)
      To
      the extent that any party hereto may, in any suit, action or proceeding brought
      in México or in any other jurisdiction arising out of or in connection with this
      Agreement and/or any of the other Financing Document(s), be entitled to the
      benefit of any provisions of Applicable Law requiring any other Person in such
      suit, action or proceeding to post security for costs or to post a bond to
      take
      such action, each party hereto hereby irrevocably waives any such benefit to
      the
      fullest extent now or hereafter permitted under Applicable Law.

     

    (e)
      To
      the extent that any Credit Party has or hereafter may acquire any immunity
      from
      jurisdiction of any court or from any legal process (whether through service
      or
      notice, attachment prior to judgment, attachment in aid of execution or
      otherwise) with respect to itself or its Property, it hereby waives or will
      irrevocably waive such immunity in respect of its obligations under the
      Financing Documents to the extent permitted by Applicable Law and, without
      limiting the generality of the foregoing, the waivers set forth in this
      paragraph shall have effect to the

     

    

    
      
        
          
          

        

        
          Bredie
            Credit Agreement 77

          
            

          

        

        
          
          

        

      

    

    

    fullest
      extent permitted under the Foreign Sovereign Immunities Act of 1976 of the
      United States and are intended to be irrevocable for purposes of such
      Act.

     

    SECTION
      10.15 Waiver of Jury Trial. EACH OF THE PARTIES
      HERETO KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ITS RESPECTIVE RIGHTS
      TO
      A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED UPON, ARISING OUT OF
      OR
      RELATED TO THE FINANCING DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED THEREBY,
      IN
      ANY ACTION, LITIGATION OR OTHER PROCEEDING OF ANY TYPE BROUGHT BY ANY SUCH
      PERSON AGAINST ANY OTHER SUCH PERSON OR ANY AGENT-RELATED PERSON OR PARTICIPANT,
      WHETHER WITH RESPECT TO CONTRACT CLAIMS, TORT CLAIMS OR OTHERWISE. EACH OF
      THE
      PARTIES HERETO AGREES THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE TRIED
      BY A
      COURT TRIAL WITHOUT A JURY. WITHOUT LIMITING THE FOREGOING, THE PARTIES FURTHER
      AGREE THAT THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY IS WAIVED BY OPERATION
      OF
      THIS SECTION AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING THAT SEEKS,
      IN
      WHOLE OR IN PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY OF THE FINANCING
      DOCUMENTS OR ANY PROVISION THEREOF. THE AGREEMENT OF EACH PARTY HERETO TO THIS
      PROVISION IS A MATERIAL INDUCEMENT FOR EACH OF THE OTHER PARTIES HERETO TO
      ENTER
      INTO THIS AGREEMENT AND THE OTHER FINANCING DOCUMENTS TO WHICH IT IS A
      PARTY.

     

    SECTION
      10.16 Judgment. (a) Each Credit Party’s
      obligations hereunder and under the other Financing Documents to make payments
      in Dollars shall not be discharged or satisfied by any tender or recovery
      pursuant to any judgment expressed in or converted into any currency other
      than
      Dollars. If, for the purpose of obtaining or enforcing judgment against any
      Credit Party in any court or in any jurisdiction, it becomes necessary to
      convert into or from any currency other than Dollars (such other currency,
      the
“Judgment Currency”), the conversion shall be made at the rate of
      exchange as quoted by the Administrative Agent or, if the Administrative Agent
      does not quote a rate of exchange on such currency, by a known dealer in such
      currency designated by the Required Lenders. Each such conversion shall be
      determined as of the Business Day preceding the Business Day on which the
      judgment is given (such preceding Business Day, the “Judgment Currency
      Conversion Date”).

     

    (b)
      If
      there is a change in the rate of exchange prevailing between the Judgment
      Currency Conversion Date and the date of actual payment of the amount due,
      then
      the Borrower covenants to pay (or cause to be paid) such additional amounts
      (if
      any) as may be necessary to ensure that the amount paid in the Judgment
      Currency, when converted at the rate of exchange prevailing on the date of
      payment, will produce the amount of Dollars that could have been purchased
      with
      the amount of Judgment Currency stipulated in the judgment or judicial award
      at
      the rate of exchange prevailing on the Judgment Currency Conversion
      Date.

     

    (c)
      For
      purposes of determining the rate of exchange under this Section, such amounts
      shall include any premium and costs payable in connection with the purchase
      of
      the Dollars.

     

    

    
      
        
          
          

        

        
          Bredie
            Credit Agreement 78

          
            

          

        

        
          
          

        

      

    

    

    SECTION
      10.17 Entire Agreement. The Financing Documents
      embody the entire agreement and understanding among the parties hereto, and
      supersede all prior or contemporaneous agreements and understandings of such
      Persons, verbal or written, relating to the subject matter hereof and
      thereof.

     

    SECTION
      10.18 Use of Names and Marks. No use of the Lead
      Arranger’s or Financing Party’s (or any of their respective Affiliates’) name,
      trademarks, service marks or symbols may be made by any Credit Party or any
      of
      their Affiliates in any advertisements or public announcements (including press
      releases) without such Lead Arranger’s or Financing Party’s (or such
      Affiliate’s) prior written approval. No Credit Party shall disclose or divulge
      (and shall prohibit its Affiliates from disclosing or divulging) any written
      opinions or advice rendered by the Lead Arranger, any Financing Party, any
      of
      their respective Affiliates or any of their agents, counsel or representatives
      in connection with the transaction contemplated hereby without the prior written
      consent of the Lead Arranger, such Financing Party, such Affiliate or such
      agent, counsel or representative; provided that a Credit Party may make
      such disclosure to its stockholders, its counsel and, as required by Applicable
      Law, Governmental Authorities. The Lead Arranger, any Financing Party and their
      respective Affiliates may use each Credit Party’s name, trademarks or service
      marks for the purpose of tombstone advertising. Neither the Lead Arranger,
      any
      Financing Party nor any of their respective Affiliates shall otherwise use
      a
      Credit Party’s or any Credit Party Affiliates’ name, trademarks, service marks
      or symbols in any advertisements or public announcements (including press
      releases) without the prior written consent of the applicable Credit Party
      or
      Credit Party Affiliate.

     

    SECTION
      10.19 Use of English Language. All certificates,
      reports, notices, documents and other communications (excluding estatutos
      sociales and powers-of-attorney) given or delivered pursuant to the
      Financing Documents shall be in the English language, except as required by
      Mexican law. If any Financing Document, certificate, reports, notices, documents
      or other communications is not originally executed in English, then the Borrower
      shall (at their own expense), concurrently with (or as promptly as possible
      after) the delivery thereof, provide the recipients thereof of a certified
      English translation thereof, upon which translation all Financing Parties shall
      have the right to rely for all purposes of the Financing Documents.

     

    SECTION
      10.20 No Partnership, Etc. The Financing Parties
      and the Credit Parties intend that the relationship between them shall be solely
      that of creditor and debtor. Nothing contained in this Agreement, the Notes
      or
      any other Financing Document shall be deemed or construed to create a
      partnership, tenancy-in-common, joint tenancy, joint venture or co-ownership
      by
      or between any Financing Party, on the one hand, and any other Financing Party,
      Credit Party or any other Person, on the other hand. The Financing Parties
      shall
      not in any way be responsible or liable for the debts, losses, obligations
      or
      duties of the Credit Parties or any other Person with respect to the Network
      or
      otherwise. All obligations to pay real property or other taxes, assessments,
      insurance premiums and all other fees and charges arising from the ownership,
      operation or occupancy of the Network (and to perform all obligations under
      the
      agreements and contracts relating thereto) shall be the sole responsibility
      of
      the Credit Parties

     

    SECTION
      10.21 Confidentiality. Each of the Administrative
      Agent and the Lenders agrees to maintain the confidentiality of the Information
      (as defined below), except that Information may be disclosed (a) to its
      Affiliates and to its and its Affiliates’ respective partners, directors,
      officers, employees, agents, advisors and other representatives (it being

     

    

    
      
        
          
          

        

        
          Bredie
            Credit Agreement 79

          
            

          

        

        
          
          

        

      

    

     

     

    understood
      that the Persons to whom such disclosure is made will be informed of the
      confidential nature of such Information and instructed to keep such Information
      confidential), (b) to the extent requested by any regulatory authority
      purporting to have jurisdiction over it, (c) to the extent required by
      applicable laws or regulations or by any subpoena or similar legal process,
      (d) to any other party hereto, (e) in connection with the exercise of
      any remedies hereunder or under any other Financing Document, any action or
      proceeding relating to this Agreement or any other Financing Document, the
      enforcement of rights hereunder or thereunder or any litigation or proceeding
      to
      which the Administrative Agent or any Lender or any of its Affiliates may be
      a
      party, (f) subject to an agreement containing provisions substantially the
      same as those of this Section, to (i) any assignee of or Participant in, or
      any prospective assignee of or Participant in, any of its rights or obligations
      under this Agreement (in the case of a Participant or prospective Participant,
      only if such Person is a Lender or an Affiliate of a Lender or has been approved
      by the Borrower to receive non-public Information), (ii) any actual or
      prospective counterparty, surety, reinsurer, guarantor or credit liquidity
      enhancer (or their advisors) to or in connection with any swap, derivative
      or
      other protective transaction relating to the Borrower and its obligations or
      (iii) to any rating agency when required by it, (g) with the consent of the
      Borrower or (h) to the extent such Information (x) becomes publicly
      available other than as a result of a breach of this Section or (y) becomes
      available to the Administrative Agent, any Lender or any of their respective
      Affiliates on a nonconfidential basis from a source other than the
      Borrower.

     

    “Information”
      means all information received from the Borrower or any of its Subsidiaries
      relating to the Borrower or any of its Subsidiaries or any of its respective
      businesses, other than any such information that is available to the
      Administrative Agent or any other Lender on a nonconfidential basis prior to
      disclosure by the Borrower or any of its Subsidiaries; provided that,
      in the case of information received from the Borrower or any of its Subsidiaries
      after the date hereof, such information is clearly identified at the time of
      delivery as confidential.  Any Person required to maintain the
      confidentiality of Information as provided in this Section shall be considered
      to have complied with its obligation to do so if such Person has exercised
      the
      same degree of care to maintain the confidentiality of such Information as
      such
      Person would accord to its own confidential information.

     

    

    

    

    
      
        
          
          

        

        
          Bredie
            Credit Agreement 80

          
            

          

        

        
          
          

        

      

    

    

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

     

    

    AXTEL,
      S.A.B. DE C.V.,

      as
      Borrower

    

    

    By: 
      _______________________________________

      Name: 
      ____________________________________

      Title:  
      ____________________________________

    
      

      By: 
        _______________________________________

        Name: 
        ____________________________________

        Title:  
        ____________________________________

    

    

    AVANTEL,
      S. DE R.L. DE C.V., as a Guarantor

    

    
      

      By: 
        _______________________________________

        Name: 
        ____________________________________

        Title:  
        ____________________________________

    

    
      

      By: 
        _______________________________________

        Name: 
        ____________________________________

        Title:  
        ____________________________________

    

    

    AVANTEL
      INFRAESTRUCTURA, S. DE R.L. DE C.V., as a Guarantor

    

    
      

      By: 
        _______________________________________

        Name: 
        ____________________________________

        Title:  
        ____________________________________

    

    
      

      By: 
        _______________________________________

        Name: 
        ____________________________________

        Title:  
        ____________________________________

    

     

     

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    

    ADEQUIP,
      S.A.,

      as
      a Guarantor

    

    
      

      By: 
        _______________________________________

        Name: 
        ____________________________________

        Title:  
        ____________________________________

    

    
      

      By: 
        _______________________________________

        Name: 
        ____________________________________

        Title:  
        ____________________________________

    

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    CREDIT
      SUISSE, acting through its Cayman 
Islands Branch, as the Administrative
      Agent

    

    
      

      By: 
        _______________________________________

        Name: 
        ____________________________________

        Title:  
        ____________________________________

      
        

        By: 
          _______________________________________

          Name: 
          ____________________________________

          Title:  
          ____________________________________

      

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    CREDIT
      SUISSE, acting through its Cayman 
Islands Branch,  as a
      Lender

    

    
      

      By: 
        _______________________________________

        Name: 
        ____________________________________

        Title:  
        ____________________________________

      
        

        By: 
          _______________________________________

          Name: 
          ____________________________________

          Title:  
          ____________________________________

      

    

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

     

    

    SCHEDULE
      2.1

    to
      Credit Agreement

     

    COMMITMENTS

    AND
      PRO RATA SHARES

    

    

    
      
        	
                Commitments

              
	 	 
	
                Lender

              	
                Dollar
                  Commitment

              
	
                Credit
                  Suisse, acting through its Cayman Islands Branch

              	
                $315,000,000.00

              
	
                Total  Commitments

              	
                $315,000,000.00

              
	 	 

      

    

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    SCHEDULE
      5.1(b)

    to
      Credit Agreement

     

    CONSENTS
      AND GOVERNMENTAL APPROVALS REQUIRED FOR FINANCING

    

    

    
      
        	
                Authorization,
                  Consent, Approval

                Notice
                  or Filing

              	
                Governmental
                  Authority

                or
                  other Person

              

      

    

    

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    SCHEDULE
      5.1(c)

    to
      Credit Agreement

     

    INDEBTEDNESS
      AND CONTINGENT OBLIGATIONS

     

    

    

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    SCHEDULE
      5.1(f)

    to
      Credit Agreement

     

    EQUITY
      INVESTMENTS

     

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    SCHEDULE
      5.1(i)

    to
      Credit Agreement

     

    GOVERNMENTAL
      APPROVALS

     

    
      	 

    

    

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    SCHEDULE
      5.1(l)

    to
      Credit Agreement

     

    LEGAL
      PROCEEDINGS

     

    

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    SCHEDULE
      10.2

    to
      Credit Agreement

     

    LENDING
      OFFICES;

                     ADDRESSES
      FOR
      NOTICES            

     

    

     

    CREDIT
      PARTIES

     

    

    Axtel,
      S.A.B. de C.V.

    Boulevard
      Díaz Ordaz Km 3.33, Lote 1

    Colonia
      Unidad San Pedro

    San
      Pedro
      Garza García, N.L.

    MEXICO
      66215

    Attention:
      Chief Financial Officer

    Tel.
      +52
      (81) 8114.1250

    Fax.
      +52
      (81) 8114.1771

    

    With
      copy
      in all cases to:

    

    Cahill
      Gordon & Reindell LLP

    Eighty
      Pine Street

    New
      York,
      N.Y. 10005-1702

    U.S.A.

    Attention:
      Roger Andrus, Esq.

    Tel.
      (212) 701.3000

    Fax.
      (212) 269.5420

    

    and

    

    D&A
      Morales y Asociados, S.C.

    Torre
      ING
      Comercial América

    Batallón
      de San Patricio 111-501

    Colonia
      Valle Oriente

    San
      Pedro
      Garza García, N.L.

    MEXICO
      66269

    Attention:
      Guillermo Robles-Portilla

    Tel.
      +52
      (81) 8129.9200

    Fax.
      +52
      (81) 8129.9220

    

    

    ADMINISTRATIVE
      AGENT AND SOLE INITIAL LENDER:

     

    Notice
      Office and Administrative Agent’s Payment Office:

    

    Credit
      Suisse

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    One
      Madison Ave

    Suite
      200

    New
      York,
      N.Y. 10010

    Attention:
      Agency Group/Fay Rollins

      Telephone:
      (212) 325-9041

      Facsimile:  (212)
      325-8304

    

    

    Payment
      Instructions:

     

    The
      Bank
      of New York

    1
      Wall
      Street, New York, NY 10015

    In
      the
      Name of: Credit Suisse, Cayman Islands Branch

    ABA:
      021
      000 018

    Account
      Name: Agency Cayman

    Account
      Number: 8900492627

    Reference:
      Axtel

    

     

    

     

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    EXHIBIT
      A

    to
      Credit Agreement

     

    FORMS
      OF NOTE

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    EXHIBIT
      B

    to
      Credit Agreement

     

    FORM
      OF

    NOTICE
      OF BORROWING

     

    

     

    Date:                                 [____________],
      200[__]

     

    
      	
              To:

            	
              Credit
                Suisse, acting through its Cayman Islands Branch, as the Administrative
                Agent under the Credit Agreement, dated as of November 30, 2006 (as
                amended from time to time, the “Credit Agreement”), among Axtel,
                S.A.B. de C.V. (the “Borrower”), Avantel, S. de R.L. de C.V.,
                their subsidiaries as Guarantors, various financial institutions
                from time
                to time party thereto as lenders, and such Administrative
                Agent.

            

    

     

    Ladies
      and Gentlemen:

     

    The
      undersigned refer to the Credit Agreement (terms defined therein being used
      herein as therein defined) and hereby gives you notice irrevocably, pursuant
      to
      Section 2.3 of the current draft of the Credit Agreement, of the borrowings
      specified below:

     

    (a)
      The
      proposed Loan borrowings shall be for $[________].

     

    (b)
      The
      Business Day of the proposed borrowing is [____________], 2006.

     

    (c)
      The
      Type of such Loans is a [LIBOR][Base Rate] Loan.

     

    (d)
      Proceeds of the Loans shall be delivered in the manner specified in

     

    Section
      2.3(b) of the Credit Agreement, and any remaining proceeds (if any) shall be
      delivered to the following account: [___________________]

     

    Each
      of
      the undersigned certifies that the following statements are true on the date
      hereof (assuming that the Financing Documents were in effect as of the date
      hereof), and will be true on the Closing Date, both before and after giving
      effect thereto and to the application of the proceeds of the Loans on such
      date:

     

    (a)
      its
      representations and warranties contained in the Financing Documents (including
      Article V of the Credit Agreement) are true and correct as though made on
      and as of such date (except to the extent such representations and warranties
      expressly relate to an earlier date, in which case they are true and correct
      as
      of such date), and

     

    (b)
      no
      Default or Unmatured Default exists or will result from such
      borrowing.

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

     

    

                                                                                                   
      AXTEL, S.A.B. DE C.V.

     

    

    

    By: 
      _____________________________________

      Name: __________________________________

      Title: 
      ___________________________________

    
      

      By: 
        _____________________________________

        Name: __________________________________

        Title: 
        ___________________________________

    

     

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    
 

    

                                                                                                                                              EXHIBIT
      C

    to
      Credit Agreement

     

    FORM
      OF

    ASSIGNMENT
      AGREEMENT

     

    Assignment
      and Assumption

     

    This
      Assignment and Assumption (the “Assignment and Assumption”) is dated as
      of the Effective Date set forth below and is entered into by and between
      [the][each]1 Assignor identified in item
      1 below ([the][each, an] “Assignor”) and [the][each]2 Assignee identified in item
      2 below
      ([the][each, an] “Assignee”).  [It is understood and agreed
      that the rights and obligations of [the Assignors][the Assignees]3 hereunder are several and not joint.]4  Capitalized
      terms used but not
      defined herein shall have the meanings given to them in the Credit Agreement
      identified below (as amended, the “Credit Agreement”), receipt of a copy
      of which is hereby acknowledged by [the][each] Assignee.  The Standard
      Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed
      to
      and incorporated herein by reference and made a part of this Assignment and
      Assumption as if set forth herein in full.

     

    For
      an
      agreed consideration, [the][each] Assignor hereby irrevocably sells and assigns
      to [the Assignee][the respective Assignees], and [the][each] Assignee hereby
      irrevocably purchases and assumes from [the Assignor][the respective Assignors],
      subject to and in accordance with the Standard Terms and Conditions and the
      Credit Agreement, as of the Effective Date inserted by the Administrative Agent
      as contemplated below (i) all of [the Assignor’s][the respective Assignors’]
      rights and obligations in [its capacity as a Lender][their respective capacities
      as Lenders] under the Credit Agreement and any other documents or instruments
      delivered pursuant thereto to the extent related to the amount and percentage
      interest identified below of all of such outstanding rights and obligations
      of
      [the Assignor][the respective Assignors] under the respective facilities
      identified below (including without limitation any letters of credit,
      guarantees, and swingline loans included in such facilities) and (ii) to the
      extent permitted to be assigned under applicable law, all claims, suits, causes
      of action and any other right of [the Assignor (in its capacity as a
      Lender)][the respective Assignors (in their respective capacities as Lenders)]
      against any Person, whether known or unknown, arising under or in connection
      with the Credit Agreement, any other documents or instruments delivered pursuant
      thereto or the loan transactions governed thereby or in any way based on or
      related to any of the foregoing, including, but not limited to, contract claims,
      tort claims, malpractice claims, statutory claims and all other claims at law
      or
      in equity related to the rights and obligations sold and assigned pursuant
      to
      clause (i) above (the rights and obligations sold and assigned by [the][any]
      Assignor to [the][any] Assignee pursuant to clauses (i) and (ii) above being
      referred to herein collectively as [the][an] “Assigned
      Interest”).  Each such

     

    

      

    

      
      1
        For bracketed
        language here and elsewhere in this form relating to the Assignor(s), if
        the
        assignment is from a single Assignor, choose the first bracketed
        language.  If the assignment is from multiple Assignors, choose the
        second bracketed language.

    

      
      2
        For bracketed
        language here and elsewhere in this form relating to the Assignee(s), if
        the
        assignment is to a single Assignee, choose the first bracketed
        language.  If the assignment is to multiple Assignees, choose the
        second bracketed language.

    

      
      3
        Select as
        appropriate.

    

      
      4
        Include bracketed
        language if there are either multiple Assignors or multiple
        Assignees.

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    sale
      and
      assignment is without recourse to [the][any] Assignor and, except as expressly
      provided in this Assignment and Assumption, without representation or warranty
      by [the][any] Assignor.

     

    1.           Assignor[s]:      ________________________________

     

                                             
      ________________________________

     

    2.           Assignee[s]:      ________________________________

     

    

    
      	
               

            	
              ______________________________

            

    

    
      	
               

            	
              [for
                each Assignee, indicate [Affiliate][Approved Fund] of [identify
                Lender]

            

    

    

    3.           Borrower(s):                                           Axtel,
      S.A.B. de C.V.

     

    
      	
              4.

            	
              Administrative
                Agent:

            	
              Credit
                Suisse, acting through its Cayman Islands Branch, as the administrative
                agent under the Credit Agreement

            

    

     

    
      	
              5.

            	
              Credit
                Agreement:

            	
              The
                Bridge Credit Agreement dated as of November 30, 2006 among Axtel,
                S.A.B.
                de C.V., certain of its subsidiaries, the Lenders parties thereto,
                and
                Credit Suisse, acting through its Cayman Islands Branch, as Administrative
                Agent

            

    

     

    6.           
      Assigned Interest[s]:

     

    
      	
              Assignor[s]5

            	
              Assignee[s]6

            	
              Facility
                Assigned7

            	
              Aggregate
                Amount of Commitment/Loans for all Lenders8

            	
              Amount
                of Commitment/Loans Assigned8

            	
              Percentage
                Assigned of Commitment/Loans9

            	
              CUSIP
                Number

            
	 	 	 	
              $

            	
              $

            	
              %

            	 
	 	 	 	
              $

            	
              $

            	
              %

            	 
	 	 	 	
              $

            	
              $

            	
              %

            	 

    

    

    [7.           Trade
      Date:                                           ______________]10

     

    Effective
      Date:   _____________ ___, 20___ [TO BE INSERTED BY
      ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF
      TRANSFER IN THE REGISTER THEREFOR.]

     

    

      

    

      
      5
        List each Assignor,
        as appropriate.

    

      
      6
        List each Assignee,
        as appropriate.

    

      
      7
        Fill in the
        appropriate terminology for the types of facilities under the Credit Agreement
        that are being assigned under this Assignment (e.g. “Revolving Credit
        Commitment,” “Term Loan Commitment,” etc.)

    

      
      8
        Amount to be
        adjusted by the counterparties to take into account any payments or prepayments
        made between the Trade Date and the Effective Date.

    

      
      9
        Set forth, to at
        least 9 decimals, as a percentage of the Commitment/Loans of all Lenders
        thereunder.

    

      
      10
        To be completed if
        the Assignor(s) and the Assignee(s) intend that the minimum assignment amount
        is
        to be determined as of the Trade Date.

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    The
      terms
      set forth in this Assignment and Assumption are hereby agreed to:

     

    

    ASSIGNOR[S]11

    
      	
            	
               

            	
              [NAME
                OF ASSIGNOR]

            

    

    

    

    By:______________________________

       Title:

    

    
      	
            	
               

            	
              [NAME
                OF ASSIGNOR]

            

    

    

    

    By:______________________________

       Title:

    

    ASSIGNEE[S]12

    [NAME
      OF
      ASSIGNEE]

    

    

    By:______________________________

       Title:

    

    [NAME
      OF
      ASSIGNEE]

    

    

    By:______________________________

       Title:

    

      

    

      
      11
        Add additional
        signature blocks as needed.

    

      
      12
        Add additional
        signature blocks as needed.

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    

    [Consented
      to and]13 Accepted:

    

    CREDIT
      SUISSE, acting through its Cayman Islands Branch, as

      Administrative
      Agent

    

    By_________________________________

      Title:

    

    By_________________________________

      Title:

    

    

     [Consented
      to:]14

    

    AXTEL,
      S.A.B. DE C.V.

    

    By________________________________

      Title:

    

    

      

    

      
      13
        To be added only
        if the consent of the Administrative Agent is required by the terms of the
        Credit Agreement.

    

      
      14
        To be added only
        if the consent of the Borrower and/or other parties (e.g. Swingline Lender,
        Issuing Bank) is required by the terms of the Credit
        Agreement.

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    ANNEX
      1

    

    [__________________]15

    

    STANDARD
      TERMS AND CONDITIONS FOR

     

    ASSIGNMENT
      AND ASSUMPTION

     

    1.  Representations
      and Warranties.

     

    1.1  Assignor[s].  [The][Each]
      Assignor (a) represents and warrants that (i) it is the legal and beneficial
      owner of [the][the relevant] Assigned Interest, (ii) [the][such] Assigned
      Interest is free and clear of any lien, encumbrance or other adverse claim
      and
      (iii) it has full power and authority, and has taken all action necessary,
      to
      execute and deliver this Assignment and Assumption and to consummate the
      transactions contemplated hereby; and (b) assumes no responsibility with respect
      to (i) any statements, warranties or representations made in or in connection
      with the Credit Agreement or any other Credit Document16, (ii) the execution, legality, validity,
      enforceability, genuineness, sufficiency or value of the Credit Documents or
      any
      collateral thereunder, (iii) the financial condition of the Borrower, any of
      its
      Subsidiaries or Affiliates or any other Person obligated in respect of any
      Credit Document or (iv) the performance or observance by the Borrower, any
      of
      its Subsidiaries or Affiliates or any other Person of any of their respective
      obligations under any Credit Document.

     

    1.2.  Assignee[s].  [The][Each]
      Assignee (a) represents and warrants that (i) it has full power and authority,
      and has taken all action necessary, to execute and deliver this Assignment
      and
      Assumption and to consummate the transactions contemplated hereby and to become
      a Lender under the Credit Agreement, (ii) it meets all the requirements to
      be an
      assignee under Section __(b)(iii), (v) and (vi) of the Credit Agreement (subject
      to such consents, if any, as may be required under Section __(b)(iii) of the
      Credit Agreement), (iii) from and after the Effective Date, it shall be bound
      by
      the provisions of the Credit Agreement as a Lender thereunder and, to the extent
      of [the][the relevant] Assigned Interest, shall have the obligations of a Lender
      thereunder, (iv) it is sophisticated with respect to decisions to acquire assets
      of the type represented by the Assigned Interest and either it, or the person
      exercising discretion in making its decision to acquire the Assigned Interest,
      is experienced in acquiring assets of such type, (v) it has received a copy
      of
      the Credit Agreement, and has received or has been accorded the opportunity
      to
      receive copies of the most recent financial statements delivered pursuant to
      Section ___ thereof, as applicable, and such other documents and information
      as
      it deems appropriate to make its own credit analysis and decision to enter
      into
      this Assignment and Assumption and to purchase [the][such] Assigned Interest,
      (vi) it has, independently and without reliance upon the Administrative Agent
      or
      any other Lender and based on such documents and information as it has deemed
      appropriate, made its own credit analysis and decision to enter into this
      Assignment and Assumption and to purchase [the][such] Assigned Interest, and
      (vii) if it is a Foreign Lender17,
      attached to the Assignment and Assumption is any documentation required
      to

     

    

      

    

      
      15
        Describe Credit
        Agreement at option of Administrative Agent.

    

      
      16
        The term “Credit
        Document” should be conformed to that used in the Credit
        Agreement.

    

      
      17
        The concept
        of  “Foreign Lender” should be conformed to the section in the Credit
        Agreement governing withholding taxes and gross-up.

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    be
      delivered by it pursuant to the terms of the Credit Agreement, duly completed
      and executed by [the][such] Assignee; and (b) agrees that (i) it will,
      independently and without reliance on the Administrative Agent, [the][any]
      Assignor or any other Lender, and based on such documents and information as
      it
      shall deem appropriate at the time, continue to make its own credit decisions
      in
      taking or not taking action under the Credit Documents, and (ii) it will perform
      in accordance with their terms all of the obligations which by the terms of
      the
      Credit Documents are required to be performed by it as a Lender.

     

    2.  Payments.  From
      and after the Effective Date, the Administrative Agent shall make all payments
      in respect of [the][each] Assigned Interest (including payments of principal,
      interest, fees and other amounts) to [the][the relevant] Assignor for amounts
      which have accrued to but excluding the Effective Date and to [the][the
      relevant] Assignee for amounts which have accrued from and after the Effective
      Date.18

     

    3.  General
      Provisions.  This Assignment and Assumption shall be binding upon,
      and inure to the benefit of, the parties hereto and their respective successors
      and assigns.  This Assignment and Assumption may be executed in any
      number of counterparts, which together shall constitute one
      instrument.  Delivery of an executed counterpart of a signature page
      of this Assignment and Assumption by telecopy shall be effective as delivery
      of
      a manually executed counterpart of this Assignment and
      Assumption.  This Assignment and Assumption shall be governed by, and
      construed in accordance with, the law of the State of New York.

     

    

     

    

      

    

      
      18
        The Administrative
        Agent should consider whether this method conforms to its systems.  In
        some circumstances, the following alternative language may be
        appropriate:  “From and after the Effective Date, the Administrative
        Agent shall make all payments in respect of [the][each] Assigned Interest
        (including payments of principal, interest, fees and other amounts) to [the][the
        relevant] Assignee whether such amounts have accrued prior to, on or after
        the
        Effective Date.  The Assignor[s] and the Assignee[s] shall make all
        appropriate adjustments in payments by the Administrative Agent for periods
        prior to the Effective Date or with respect to the making of this assignment
        directly between themselves.”

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    EXHIBIT
      D

    to
      Credit Agreement

     

    FORM
      OF

    SUBSIDIARY
      JOINDER AGREEMENT

     

    SUBSIDIARY
      JOINDER AGREEMENT (this “Agreement”) dated as of ________,
      ___, by ______________, a __________ [corporation] (the “New
      Subsidiary”), in favor of Credit Suisse, acting through its Cayman Islands
      Branch, as Administrative Agent (the “Administrative Agent”), for the
      benefit of the Financing Parties. Unless otherwise defined herein, capitalized
      terms used herein and defined in the Credit Agreement, dated as of
[___________], 2006 (as amended or otherwise modified from time
      to time, the “Credit Agreement”), among Axtel, S.A.B. de C.V. (the
“Borrower”), Avantel, S. de R.L. de C.V., their subsidiaries, various
      financial institutions from time to time party thereto as lenders, and the
      Administrative Agent (as amended, modified or supplemented from time to time,
      the “Credit Agreement”), are used herein as therein defined and the
      rules of interpretation set forth in Section 1.2 thereof shall apply
      hereto.

     

    WHEREAS,
      the Borrower has entered into the Credit Agreement and certain other Financing
      Documents providing for the making of Loans,

     

    WHEREAS,
      in connection with the Financing Documents, certain of the Borrower’s
      Subsidiaries have entered into (or are required to enter into) the Credit
      Agreement as Guarantors thereunder,

     

    WHEREAS,
      on ________, ___, the New Subsidiary was [newly formed/acquired] as a ___%
      [directly/indirectly] owned Subsidiary of the Borrower,

     

    WHEREAS,
      pursuant to Section 6.2(j) of the Credit Agreement, the New Subsidiary is
      required to become a party to the Credit Agreement as a Guarantor,
      and

     

    WHEREAS,
      the New Subsidiary desires to execute and deliver this Agreement in order to
      become a party to the Credit Agreement pursuant to Section 6.2(j) of the
      Credit Agreement,

     

    NOW,
      THEREFORE, IT IS AGREED as follows:

     

    SECTION
      1. Joinder. By executing and delivering this Agreement, the New
      Subsidiary hereby becomes a party to the Credit Agreement as a “Guarantor”
thereunder, and hereby expressly assumes all obligations and liabilities of
      a
“Guarantor” thereunder. The New Subsidiary hereby makes each of the
      representations and warranties contained in Section 5.1 of the Credit
      Agreement on the date hereof as if such representations and warranties were
      made
      as of the date hereof, after giving effect to this Agreement.

     

    SECTION
      2. Counterparts. This Agreement may be signed in any number of
      counterparts, each of which shall be an original, with the same effect as if
      the
      signatures were upon the same agreement.

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    SECTION
      3. Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND
      CONSTRUED IN ACCORDANCE WITH, THE LAW OF NEW YORK (NOT INCLUDING SUCH STATE’S
      CONFLICT OF LAWS PROVISIONS OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL
      OBLIGATIONS LAW).

     

    IN
      WITNESS WHEREOF, the undersigned has caused this Agreement to be
      duly executed and delivered as of the date first above written.

     

    [NEW
      SUBSIDIARY]

     

    Address:                                                                                
      By: ____________________________

                                                                                                         Name:_________________________

                                                                                                      
        Title: _________________________

    ACKNOWLEDGED:

    

     

    CREDIT
      SUISSE, ACTING THROUGH ITS CAYMAN ISLANDS BRANCH,

     

     as
      the Administrative Agent

     

    By: _________________________________

      Name:______________________________

      Title:_______________________________

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    EXHIBIT
      E

    to
      Credit Agreement

     

    FORMS
      OF OPINIONSex4_19.htm

    Exhibit
      4.19

    
      

    

    CREDIT
      AGREEMENT

     

    dated
      as of November 30, 2006

     

    among

     

    AXTEL,
      S.A.B. DE C.V.,

     

    as
      Borrower,

     

    AVANTEL,
      S. DE R.L. DE C.V. and

    THE
      OTHER SUBSIDIARIES OF THE BORROWER,

     

    as
      Guarantors,

     

    

     

    VARIOUS
      FINANCIAL INSTITUTIONS,

     

    as
      Lenders,

     

    

     

    CITIBANK,
      N.A.,

     

    as
      the Administrative Agent,

     

    

     

    and

     

    

     

    BANCO
      NACIONAL DE MEXICO, S.A.

     

    INTEGRANTE
      DEL GRUPO FINANCIERO BANAMEX,

     

    as
      the Peso Agent

     

    _____________________________________________________________________

    

    CITIGROUP
      GLOBAL MARKETS INC.,

    as
      Sole Lead Arranger and Bookrunner

    

    
      

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    TABLE
      OF CONTENTS

    

    
      
        	 	Page
	 	 
	
                ARTICLE
                  I  DEFINITIONS

              	
                1

              
	
                SECTION
                  1.1 Certain Defined Terms

              	
                1

              
	
                SECTION
                  1.2 Other Interpretive Provisions

              	
                22

              
	
                SECTION
                  1.3 Accounting Principles

              	
                23

              
	
                ARTICLE
                  II  THE CREDITS

              	
                23

              
	
                SECTION
                  2.1 Amounts and Terms of Commitments

              	
                23

              
	
                SECTION
                  2.2 Notes

              	
                24

              
	
                SECTION
                  2.3 Procedure for Borrowing

              	
                24

              
	
                SECTION
                  2.4 Prepayments

              	
                25

              
	
                SECTION
                  2.5 Repayment

              	
                25

              
	
                SECTION
                  2.6 Interest

              	
                26

              
	
                SECTION
                  2.7 Fees

              	
                27

              
	
                SECTION
                  2.8 Computation of Fees and Interest

              	
                27

              
	
                SECTION
                  2.9 Payments by Credit Parties

              	
                27

              
	
                SECTION
                  2.11 Sharing of Payments, Etc.

              	
                28

              
	
                ARTICLE
                  III  TAXES AND ILLEGALITY

              	
                29

              
	
                SECTION
                  3.1 Taxes

              	
                29

              
	
                SECTION
                  3.2 Illegality

              	
                31

              
	
                SECTION
                  3.3 Increased Costs and Reduction of Return

              	
                32

              
	
                SECTION
                  3.4 Funding Losses

              	
                32

              
	
                SECTION
                  3.5 Inability to Determine Rates

              	
                33

              
	
                SECTION
                  3.6 Certificates of the Lenders and Agents

              	
                34

              
	
                SECTION
                  3.7 Substitution of Lenders

              	
                34

              
	
                SECTION
                  3.8 Survival

              	
                34

              
	
                ARTICLE
                  IV  CONDITIONS PRECEDENT

              	
                35

              
	
                SECTION
                  4.1 Conditions Precedent to Making Loans

              	
                35

              
	
                SECTION
                  4.2 Satisfaction of Conditions Precedent

              	
                39

              
	
                ARTICLE
                  V  REPRESENTATIONS AND WARRANTIES

              	
                39

              
	
                SECTION
                  5.1 Representations and Warranties

              	
                39

              
	
                ARTICLE
                  VI  COVENANTS

              	
                46

              

      

    

    

    
      
        
           

        

        
          Credit
            Agreement
            i

          
            

          

        

        
           

        

      

    

    TABLE
      OF CONTENTS

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        	 	Page
	 	 
	
                SECTION
                  6.1 AFFIRMATIVE COVENANTS

              	
                46

              
	
                SECTION
                  6.2 Negative Covenants

              	
                51

              
	
                ARTICLE
                  VII  DEFAULT/REMEDIES

              	
                61

              
	
                SECTION
                  7.1 Default/Remedies

              	
                61

              
	
                SECTION
                  7.2 Acceleration

              	
                64

              
	
                SECTION
                  7.3 Rights Not Exclusive

              	
                64

              
	
                ARTICLE
                  VIII  THE AGENTS

              	
                64

              
	
                SECTION
                  8.1 Appointment and Authorization

              	
                64

              
	
                SECTION
                  8.2 Delegation of Duties

              	
                65

              
	
                SECTION
                  8.3 No Liability of Agent-Related Persons

              	
                65

              
	
                SECTION
                  8.4 Reliance by the Agent-Related Persons

              	
                65

              
	
                SECTION
                  8.5 Notice of Default

              	
                65

              
	
                SECTION
                  8.6 Credit Decision

              	
                66

              
	
                SECTION
                  8.7 Indemnification of Agent-Related Persons

              	
                66

              
	
                SECTION
                  8.8 The Agent-Related Persons in Their Individual Capacity

              	
                67

              
	
                SECTION
                  8.9 Successor Agent

              	
                67

              
	
                ARTICLE
                  IX  GUARANTY

              	
                68

              
	
                SECTION
                  9.1 Guaranty

              	
                68

              
	
                SECTION
                  9.2 Guaranty Unconditional

              	
                68

              
	
                SECTION
                  9.3 Discharge only upon Payment in Full; Reinstatement in Certain
                  Circumstances

              	
                69

              
	
                SECTION
                  9.4 Waiver by the Guarantors

              	
                69

              
	
                SECTION
                  9.5 Subrogation

              	
                69

              
	
                SECTION
                  9.6 Stay of Acceleration

              	
                70

              
	
                ARTICLE
                  X  MISCELLANEOUS

              	
                70

              
	
                SECTION
                  10.1 Amendments and Waivers

              	
                70

              
	
                SECTION
                  10.2 Notices

              	
                71

              
	
                SECTION
                  10.3 No Waiver; Cumulative Remedies

              	
                73

              
	
                SECTION
                  10.4 Costs and Expense

              	
                73

              
	
                SECTION
                  10.5 Borrower Indemnification

              	
                73

              

      

    

    

    
      
        
           

        

        
          Credit
            Agreement
            ii

          
            

          

        

        
           

        

      

    

     

    
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        OF CONTENTS

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        	 	Page
	 	 
	
                SECTION
                  10.6 Payments Set Aside

              	
                74

              
	
                SECTION
                  10.7 Successors and Assigns

              	
                74

              
	
                SECTION
                  10.8 Assignments, Participations, etc

              	
                75

              
	
                SECTION
                  10.9 Set-off

              	
                77

              
	
                SECTION
                  10.10 Notification of Addresses, Lending Offices, Etc.

              	
                77

              
	
                SECTION
                  10.11 Counterparts

              	
                77

              
	
                SECTION
                  10.12 Severability

              	
                77

              
	
                SECTION
                  10.13 Third Party Beneficiaries

              	
                77

              
	
                SECTION
                  10.14 Governing Law and Jurisdiction

              	
                78

              
	
                SECTION
                  10.15 Waiver of Jury Trial

              	
                79

              
	
                SECTION
                  10.16 Judgment

              	
                80

              
	
                SECTION
                  10.17 Entire Agreement

              	
                80

              
	
                SECTION
                  10.18 Use of Names and Marks

              	
                80

              
	
                SECTION
                  10.19 Use of English Language

              	
                81

              
	
                SECTION
                  10.20 No Partnership, Etc.

              	
                81

              
	
                SECTION
                  10.21 Confidentiality.

              	
                81

              

      

    

    

    

    
      
        
           

        

        
          Credit
            Agreement
            iii

          
            

          

        

        
           

        

      

    

    

    SCHEDULES

     

    
      
        	
                SCHEDULE
                  2.1

              	
                Commitments
                  and Pro Rata Shares

              
	
                SCHEDULE
                  4.1(l)

              	
                Existing
                  Liens and Release Documentation

              
	
                SCHEDULE
                  4.1(m)

              	
                Acquisition
                  Documents

              
	
                SCHEDULE
                  5.1(b)

              	
                Governmental
                  Approvals Required for Financing

              
	
                SCHEDULE
                  5.1(c)

              	
                Indebtedness
                  and Contingent Obligations

              
	
                SCHEDULE
                  5.1(f)

              	
                Equity
                  Investments

              
	
                SCHEDULE
                  5.1(i)

              	
                Governmental
                  Approvals

              
	
                SCHEDULE
                  5.1(l)

              	
                Legal
                  Proceedings

              
	
                SCHEDULE
                  6.1(k)

              	
                Material
                  Concessions

              
	
                SCHEDULE
                  6.2(a)(vii)

              	
                Continuing
                  Existing Liens

              
	
                SCHEDULE
                  10.2

              	
                Lending
                  Offices; Addresses for
                  Notices

              

      

    

    

    

    EXHIBITS

     

    
      
        	
                EXHIBIT
                  A-1

              	
                Form
                  of Note for Dollar Loans

              
	
                EXHIBIT
                  A-2

              	
                Form
                  of Note for Peso Loans

              
	
                EXHIBIT
                  B

              	
                Form
                  of Notice of Borrowing

              
	
                EXHIBIT
                  C

              	
                Form
                  of Assignment Agreement

              
	
                EXHIBIT
                  D

              	
                Form
                  of Subsidiary Joinder Agreement

              
	
                EXHIBIT
                  E

              	
                Forms
                  of Opinions

              

      

    

    

    
      
        
           

        

        
          Credit
            Agreement iv

          
            

          

        

        
           

        

      

    

    

    SCHEDULES

     

    SCHEDULE
      2.1                                                      
Commitments and Pro Rata Shares

    SCHEDULE
      4.1(l)                                                   Existing
      Liens and Release Documentation

    SCHEDULE
      4.1(m)                                                 Acquisition
      Documents

    SCHEDULE
      5.1(b)                                                  Governmental
      Approvals Required for Financing

    SCHEDULE
      5.1(c)                                                   Indebtedness
      and Contingent Obligations

    SCHEDULE
      5.1(f)                                                   Equity
      Investments

    SCHEDULE
      5.1(i)                                                   
Governmental Approvals

    SCHEDULE
      5.1(l)                                                    Legal
      Proceedings

    SCHEDULE
      6.1(k)                                                   Material
      Concessions

    SCHEDULE
      6.2(a)(vii)                                            Continuing
      Existing Liens

    SCHEDULE
      10.2                                                      Lending
      Offices; Addresses for Notices

    

    

    EXHIBITS

     

    EXHIBIT
      A-1                                           Form
      of Note for Dollar Loans

    EXHIBIT
      A-2                                           Form
      of Note for Peso Loans

    EXHIBIT
      B                                              
Form of Notice of Borrowing

    EXHIBIT
      C                                              
Form of Assignment Agreement

    EXHIBIT
      D               Form
      of Subsidiary Joinder
      Agreement

    EXHIBIT
      E                                              
Forms of Opinions

    

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    This
      CREDIT AGREEMENT is entered into as of November 30,
      2006 (this “Agreement”) among: (a) AXTEL, S.A.B. DE C.V., a
      Mexican sociedad anónima bursátil de capital variable (the
“Borrower”), (b) AVANTEL, S. DE R.L. DE C.V., a Mexican
sociedad de responsabilidad limitada de capital variable
      (“Avantel”), (c) OTHER SUBSIDIARIES OF THE BORROWER, as
      Guarantors, (d) VARIOUS FINANCIAL INSTITUTIONS, as lenders (the
“Lenders”), (e) CITIBANK, N.A., as the Administrative Agent (in
      such capacity, the “Administrative Agent”), and (f) BANCO NACIONAL DE
      MEXICO, S.A., INTEGRANTE DEL GRUPO FINANCIERO BANAMEX, as the Peso Agent (in
      such capacity, the “Peso Agent”).

     

    WHEREAS,
      the Avantel Companies are party to the Credit Agreement, dated as of
      June 30, 2005 (as heretofore amended, the “Existing Credit
      Agreement”), with various lenders, ABN AMRO Bank N.V., as administrative
      agent, U.S. Bank National Association, as collateral agent, and certain other
      parties,

     

    WHEREAS,
      simultaneously with the funding under this Agreement, the Borrower is acquiring
      (the “Acquisition”) all of the Capital Stock (defined below) in Avantel
      and substantially all of the assets and all of the Capital Stock of Avantel
      Infraestructura, S. de R.L. de C.V., a Mexican sociedad de
      responsabilidad limitada de capital variable (“Avantel
      Infraestructura”), pursuant to the acquisition agreements described on
Schedule 4.1(m), and

     

    WHEREAS,
      the Borrower desires to refinance the obligations under the Existing Credit
      Agreement and to obtain additional funding for its general corporate purposes
      by
      entering into the transactions provided for herein, and the other parties hereto
      desire to participate in such transactions in the manner described
      herein.

     

    NOW,
      THEREFORE, in consideration of the mutual agreements, provisions
      and covenants contained herein, the parties agree as follows:

     

     

    ARTICLE
      I

    DEFINITIONS

     

    SECTION
      1.1 Certain Defined Terms. As used in this
      Agreement, the following terms shall have the following meanings:

     

    “Acquisition”
      shall have the meaning set forth in the recitals.

     

    “Acquisition
      Documentation” shall have the meaning set forth in Section
      4.1(m).

     

    “Additional
      Amounts” shall have the meaning set forth in
Section 3.1(b)(i).

     

    “Administrative
      Agent” shall have the meaning set forth in the preamble.

     

    “Administrative
      Agent’s Payment Office” shall mean, with respect to payment in Dollars, the
      address for such payments to the Administrative Agent set forth on
Schedule 10.2

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 1

          
            

          

        

        
          
          

        

      

    

     

    or
      such
      other address as the Administrative Agent may specify from time to time to
      the
      other parties hereto.

     

    “Affected
      Lender” shall have the meaning set forth in
Section 3.7.

     

    “Affiliate”
      shall mean, as to any Person, any other Person who is directly or indirectly
      Controlled by, under common Control with or Controls such Person.

     

    “Agent”
      shall mean each of the Administrative Agent and the Peso Agent.

     

    “Agent-Related
      Persons” shall mean the Agents, any successor thereto in such capacity
      hereunder and the Lead Arranger, together with their respective Affiliates
      or in
      their other capacities, and the officers, directors, employees, counsel, agents
      and attorneys-in-fact of any such Person(s).

     

    “Agreement”
      shall have the meaning set forth in the preamble.

     

    “Applicable
      Base Rate Margin” shall mean 0.875% per annum.

     

    “Applicable
      Law” shall mean any applicable statute, law, regulation, ordinance, rule,
      judgment, rule of common law, order, decree, approval (including any
      Governmental Approval), concession, grant, franchise, license, agreement,
      directive, guideline, policy, requirement or other governmental restriction
      or
      any similar form of decision of, or determination by (or any interpretation
      or
      administration of any of the foregoing by), any Governmental Authority, whether
      in effect as of the Closing Date or thereafter (including any Environmental
      Law).

     

    “Applicable
      Margin” shall mean 1.875% per annum.

     

    “Assignee”
      shall have the meaning set forth in Section 10.8(a).

     

    “Assignment
      Agreement” shall have the meaning set forth in
Section 10.8(a).

     

    “Attorney
      Costs” shall mean all fees and disbursements of any law firm or other
      external counsel (but of not more than one firm or other external counsel for
      all Financing Parties per jurisdiction at any time) or notarial
      fees.

     

    “Auditors”
      shall mean KPMG Cardenas Dosal, S.C. or a replacement thereof appointed by
      the
      Borrower and approved by the Required Lenders; it being agreed that no
      such approval shall be required if such replacement is a member company or
      Affiliate of any one of the “Big Four” accounting firms.

     

    “Authorized
      Officer” shall mean, with respect to any Person, its Chief Executive
      Officer (Director General), Chief Financial Officer (Director de
      Finanzas), Treasurer (Tesorero), Comptroller (Contralor)
      or any more senior officer.

     

    “Avantel”
      shall have the meaning set forth in the preamble.

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 2

          
            

          

        

        
          
          

        

      

    

    

    “Avantel
      Companies” shall mean Avantel, Avantel Infraestructura and their
      Subsidiaries as of the Closing Date.

     

    “Avantel
      Infraestructura” shall mean Avantel Infraestructura, S. de R.L. de C.V., a
      Mexican sociedad de responsabilidad limitada de capital
      variable.

     

    “Avantel/Telmex
      IRU” shall mean the indefeasible right to use  certain
      telecommunications capacity pursuant to an agreement between Avantel and Telmex
      originally entered into on January 2, 2006.

     

    “Banco
      de MéxicoReplacement Rate” shall have the meaning set forth in
Section 3.5(c).

     

    “Banamex”
      shall mean Banco Nacional de México, S.A., integrante del Grupo Financiero
      Banamex, a sociedad anónima organized under the laws of México and
      authorized to provide banking services in México.

     

    “Base
      Rate” shall mean, for any day, the higher of: (a) 0.50% per annum
      above the latest Federal Funds Rate and (b) the rate of interest in effect
      for
      such day as publicly announced from time to time by the Administrative Agent
      in
      the city in which the Administrative Agent’s Payment Office is located as its
“reference rate.” The “reference rate” is a rate set based upon various factors,
      including the Administrative Agent’s costs and desired return, general economic
      conditions and other factors, and is used as a reference point for pricing
      some
      loans, which may be priced at, above or below such announced rate. Any change
      in
      the “reference rate” (occasionally referred to as the “prime rate”) announced by
      the Administrative Agent shall take effect at the opening of business on the
      day
      specified in the public announcement of such change.

     

    “Base
      Rate Loan” shall mean a Dollar Loan that bears interest based upon the Base
      Rate.

     

    “Borrower”
      shall have the meaning set forth in the preamble.

     

    “Bridge
      Credit Agreement” shall mean the Credit Agreement dated as of November
      30, 2006 among the Borrower, the Guarantors, the lenders party thereto and
      Credit Suisse, acting through its Cayman Islands Branch, as administrative
      agent.

     

    “Business”
      shall mean any business in which the Borrower or any of its Subsidiaries was
      engaged on the Closing Date and any business related, ancillary or complementary
      to such business.

     

    “Business
      Day” shall mean any day other than a Saturday or Sunday and: (a) other than
      any other day on which commercial banks in New York City, New York, the city
      in
      which the Administrative Agent’s Payment Office is located (only with respect to
      the determination of the Base Rate) or México City, México are authorized or
      required by law to close, and (b) if the applicable Business Day relates to
      the
      determination of LIBOR, shall mean a day on which dealings are carried on in
      the
      London interbank eurodollar market.

     

    “Capital
      Adequacy Regulation” shall mean any guideline, request or directive of any
      central bank or other Governmental Authority, or any other law, rule or
      regulation, whether or not having the force of law, in each case regarding
      capital adequacy of any bank (or similar entity) or of any Person controlling
      a
      bank (or similar entity).

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 3

          
            

          

        

        
          
          

        

      

    

    

     

     

    “Capitalized
      Lease Obligations” shall mean, with respect to any Person, all outstanding
      obligations of such Person in respect of Capital Leases, taken at the
      capitalized amount thereof accounted for as indebtedness in accordance with
      GAAP.

     

    “Capital
      Lease” shall mean any lease of any Property (whether real, personal or
      mixed) by any Person as lessee that, in conformity with GAAP, is required to
      be
      accounted for as a capital lease on the balance sheet of such
      Person.

     

    “Capital
      Stock” shall mean any capital stock (including preferred stock) issued by a
      corporation or similar ownership interests (including partes sociales
      and partnership interests) in any Person.

     

    “Change
      of Control” shall mean the occurrence of any of the following
      events:

     

    (a)
      if
      any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange
      Act), other than one or more Permitted Holders, is or becomes the “beneficial
      owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that
      for purposes of this clause (a): (i) such person shall be deemed to have
“beneficial ownership” of all shares that such person has the right to acquire,
      whether such right is exercisable immediately or only after the passage of
      time,
      and (ii) such person shall not be deemed to have “beneficial ownership” of any
      shares solely as a result of a voting or similar agreement entered into in
      connection with a merger agreement or asset sale agreement), directly or
      indirectly, of more than 35% of the total voting power of the Voting Stock
      of
      the Borrower; provided, however, that Permitted Holders
      beneficially own (as defined in Rules 13d-3 and 13d-5 under the Exchange Act),
      directly or indirectly, in the aggregate a lesser percentage of the total voting
      power of the Voting Stock of the Borrower than such other person and do not
      have
      the right or ability by voting power, contract or otherwise to elect or
      designate for election a majority of the Board of Directors of the Borrower
      (for
      the purposes of this clause (a), such other person shall be deemed to
      beneficially own any Voting Stock of a specified person held by a parent entity,
      if such other person is the beneficial owner, directly or indirectly, of more
      than 35% of the voting power of the Voting Stock of such parent entity and
      the
      Permitted Holders beneficially own, directly or indirectly, in the aggregate
      a
      lesser percentage of the voting power of the Voting Stock of such parent entity
      and do not have the right or ability by voting power, contract or otherwise
      to
      elect or designate for election a majority of the board of directors of such
      parent entity),

     

    (b)
      individuals who on the Closing Date constituted the Board of Directors of the
      Borrower (together with any new directors whose election by such Board of
      Directors or whose appointment or nomination for election by the shareholders
      of
      the Borrower was approved by a vote of a majority of the directors of the
      Borrower then still in office who were either directors on the Closing Date
      or
      whose appointment, election or nomination for election was approved directly
      or
      indirectly by the Permitted Holders or by directors

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 4

          
            

          

        

        
          
          

        

      

    

    

    previously
      so approved) cease for any reason to constitute a majority of the Board of
      Directors of the Borrower then in office,

     

    (c)
      the
      adoption of a plan relating to the liquidation or dissolution of the Borrower;
      provided, however, that this clause (c) will not be
      applicable to: (i) a Guarantor consolidating with, merging into or transferring
      all or part of its Properties to the Borrower or (ii) the Borrower merging
      with
      an Affiliate of the Borrower solely for the purpose and with the sole effect
      of
      reincorporating the Borrower in another jurisdiction, or

     

    (d)
      the
      merger or consolidation of the Borrower with or into another Person or the
      merger of another Person with or into the Borrower, or the sale of all or
      substantially all the Property of the Borrower (determined on a consolidated
      basis) to another Person other than a transaction in which holders of securities
      that directly or indirectly represented 100% of the Voting Stock of the Borrower
      immediately prior to such transaction (or other securities into which such
      securities are converted as part of such merger or consolidation transaction)
      own directly or indirectly at least a majority of the voting power of the Voting
      Stock of the transferee Person or the surviving Person in such merger or
      consolidation transaction immediately after such transaction.

     

    “Closing
      Date” shall mean December 4, 2006.

     

    “Code”
      shall mean the Internal Revenue Code of 1986 of the United States and the
      regulations promulgated and rulings issued thereunder.

     

    “COFETEL”
      shall mean the Comisión Federal de Telecomunicaciones, an agency of the
      SCT.

     

    “Commitments”
      shall mean the Dollar Commitments and the Peso Commitments.

     

    “Communications”
      shall have the meaning set forth in Section 10.2(d).

     

    “Consolidated
      Basis” shall mean, initially, the combined Financial Statements of the
      Borrower and its Subsidiaries (including the Avantel Companies) and for periods
      in which the Avantel Companies are consolidated with the Borrower, the
      consolidated Financial Statements of the Borrower and its Subsidiaries, in
      each
      case, where applicable, excluding the Unrestricted Subsidiaries but including
      Immaterial Subsidiaries, even if not Guarantors.

     

    “Consolidated
      EBITDA” shall mean, for any period (on a Consolidated Basis for the
      Borrower and its Subsidiaries determined in accordance with GAAP): (a) the
      income from operations for such period plus (b) depreciation of fixed
      or capital assets and amortization of intangibles and leasehold improvements
      for
      such period included in the calculation of income from operations.

     

    “Consolidated
      EBITDA to Interest Ratio” shall mean, at any date of determination, the
      ratio (expressed as a decimal) of: (a) Consolidated EBITDA (determined excluding
      the Unrestricted Subsidiaries but including the Immaterial Subsidiaries even
      if
      not Guarantors) divided by (b) the Consolidated Interest Expense, in
      each case determined for the four most

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 5

          
            

          

        

        
          
          

        

      

    

     

    recent
      fiscal quarters ending on or before such date (as applicable, determined on
      a
pro forma basis as if the Acquisition had occurred at the beginning of
      such four fiscal quarter period).

     

    “Consolidated
      Indebtedness” shall mean, as of any date of determination, all Indebtedness
      (including the Loans) of the Borrower and its Restricted Subsidiaries determined
      on a Consolidated Basis.

     

    “Consolidated
      Interest Expense” shall mean, for any period, all interest, fees, premia
      and similar payments payable by the Borrower and its Restricted Subsidiaries
      with respect to Indebtedness (including the Loans) and/or Contingent Obligations
      during such period, determined on a Consolidated Basis, in accordance with
      GAAP,
      and when determined for a future period, assuming no unscheduled reduction
      in
      principal, increase in Indebtedness or Contingent Obligations or change in
      applicable interest rates.

     

    “Consolidated
      Senior Indebtedness” shall mean Consolidated Indebtedness excluding
      Permitted Subordinated Indebtedness.

     

    “Consolidated
      Senior Indebtedness to EBITDA Ratio” shall mean, at any date of
      determination, the ratio (expressed as a decimal) of: (a) Consolidated Senior
      Indebtedness as at such date divided by (b) Consolidated EBITDA
      (determined excluding the Unrestricted Subsidiaries but including the Immaterial
      Subsidiaries even if not Guarantors) for the four most recent fiscal quarters
      ending on or before such date (as applicable, determined on a pro forma
      basis as if the Acquisition had occurred at the beginning of such four fiscal
      quarter period).

     

    “Consolidated
      Total Indebtedness to EBITDA Ratio” shall mean, at any date of
      determination, the ratio (expressed as a decimal) of: (a) Consolidated
      Indebtedness as at such date divided by (b) Consolidated EBITDA
      (determined excluding the Unrestricted Subsidiaries but including the Immaterial
      Subsidiaries even if not Guarantors) for the four most recent fiscal quarters
      ending on or before such date (as applicable, determined on a pro forma
      basis as if the Acquisition had occurred at the beginning of such four fiscal
      quarter period).

     

    “Contingent
      Obligation” shall mean (without duplication): (a) the face amount of all
      letters of credit, performance bonds and similar instruments, including
fianzas (excluding any such amounts for which a reimbursement
      obligation exists and any such instrument to the extent it secures the payment
      of Indebtedness), (b) a guarantee, an indemnity obligation in respect of a
      guarantee or performance bond (including a fianza), an endorsement or
      an aval, (c) all liabilities secured by any Lien on any Property of the
      applicable Person, whether or not such liabilities have been assumed by such
      Person, (d) a contingent agreement to purchase or to furnish funds for the
      payment or maintenance of, or otherwise to be or become contingently liable
      under or with respect to, any Indebtedness, other obligations, net worth,
      working capital or earnings of any Person, (e) a guarantee of the payment of
      dividends or other distributions upon the Capital Stock of any Person, (f)
      an
      agreement to purchase, sell or lease (as lessee or lessor) Property or services,
      primarily in each case for the purpose of enabling a debtor to make payment
      of
      its obligations, or (g) an agreement to assure a creditor against loss; in
      each case including causing a bank or other Person to issue a letter of
      credit or other similar instrument for the benefit of any Person, but excluding
      endorsement for collection or deposit in the ordinary course of
      business.

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 6

          
            

          

        

        
          
          

        

      

    

    

    The
      amount of any Contingent Obligation of any Person shall be deemed to be an
      amount equal to the stated or determinable amount of the primary obligation
      in
      respect of which such Contingent Obligation is made or, if not stated or
      determinable, the maximum reasonably anticipated liability in respect thereof
      (assuming such Person is required to perform thereunder) as determined in good
      faith.

     

    “Control”
      of any Person shall mean possession, directly or indirectly, of the power to
      direct or cause the direction of the management and policies of such Person,
      whether through the ownership of Voting Stock, by contract or
      otherwise.

     

    “Covered
      Taxes” shall have the meaning set forth in
Section 3.1(a).

     

    “Credit
      Party” shall mean the Borrower or a Guarantor.

     

    “Credit
      Party Affiliate” shall mean an Affiliate of a Credit Party.

     

    “Customer
      Premises Equipment” shall mean equipment owned by the Borrower or a
      Restricted Subsidiary that is either leased or sold on an installment basis
      to a
      customer of the Borrower or such Restricted Subsidiary in connection with the
      provision of telecommunications services to such customer by the Borrower or
      a
      Restricted Subsidiary.

     

    “Default”
      shall have the meaning set forth in Section 7.1.

     

    “Default
      Rate” shall mean, at any time of determination: (a) with respect to Dollar
      Loans, the interest rate(s) then applicable to such Dollar Loans plus
      2% per annum, and (b) with respect to Peso Loans: (i) two
multiplied by (ii) the Peso Rate, and (c) with respect to other
      Obligations, the Base Rate plus the Applicable Base Rate Margin
plus 2% per annum.

     

    “Disqualified
      Stock” shall mean, with respect to the Borrower, any Capital Stock that by
      its terms (or by the terms of any security into which it is convertible or
      for
      which it is exchangeable at the option of the holder) or upon the happening
      of
      any event:

     

    (a)  matures
      or is mandatorily redeemable (other than redeemable only for Capital Stock
      of
      the Borrower that is not itself Disqualified Stock) pursuant to a sinking fund
      obligation or otherwise,

     

    (b)  is
      convertible or exchangeable at the option of the holder for Indebtedness or
      Disqualified Stock, or

     

    (c)  is
      mandatorily redeemable or must be purchased upon the occurrence of certain
      events or otherwise, in whole or in part,

     

    in
      each
      case on or prior to the first anniversary of the Maturity Date;
provided, however, that any Capital Stock that would not
      constitute Disqualified Stock but for provisions thereof giving holders thereof
      the right to require such Person to purchase or redeem such Capital Stock upon
      the occurrence of an “asset sale” or “change of control” occurring prior to the
      first anniversary of the Maturity Date shall not constitute Disqualified Stock
      if any such requirement only becomes operative after the repayment in full
      of
      the Obligations.

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 7

          
            

          

        

        
          
          

        

      

    

    

    The
      amount of any Disqualified Stock
      that does not have a fixed redemption, repayment or repurchase price shall
      be
      calculated in accordance with the terms of such Disqualified Stock as if such
      Disqualified Stock were redeemed, repaid or repurchased on any date on which
      the
      amount of such Disqualified Stock is to be determined pursuant to this
      Agreement; provided, however, that if such Disqualified Stock
      could not be required to be redeemed, repaid or repurchased at the time of
      such
      determination, then the redemption, repayment or repurchase price shall be
      the
      book value of such Disqualified Stock as reflected in the most recent Financial
      Statements of such Person.

     

    “Dollar
      Commitment” shall mean, with respect to each Lender providing such a
      commitment, the Dollar amount set forth opposite its name on
Schedule 2.1 under the heading “Dollar Commitments.”

     

    “Dollar
      Lender” shall mean a Lender with a Dollar Commitment or Dollar
      Loan.

     

    “Dollar
      Loans” shall mean the Loans in Dollars provided to the Borrower by the
      Lenders with Dollar Commitments.

     

    “Dollar/Peso
      Equivalent” shall mean, with respect to any monetary amount in Dollars or
      Pesos, at any time of determination thereof, the amount of Pesos or Dollars
      (as
      applicable) determined by the Administrative Agent by converting either such
      currency into the other currency at the Exchange Rate.

     

    “Dollars”
      or “$” or “US$” shall mean the lawful currency of the United
      States of America.

     

    “Dollar
      Tranche” shall mean the portion of the funding provided pursuant to the
      Commitments denominated in Dollars.

     

    “Eligible
      Assignee” shall mean: (a) a Mexican Financial Institution, (b) an Export
      Credit Agency or (c) a Foreign Financial Institution resident in a jurisdiction
      that is party to a treaty with México for the avoidance of double taxation
      entitled to the benefits of such treaty and to the reduced rate established
      in
      such treaty for the type of interest granted therein; provided that no
      Credit Party or Subsidiary may be an Eligible Assignee.

     

    “Environmental
      Law” shall mean any federal, national, multilateral, state, local or other
      law, statute, common law duty, rule, regulation, ordinance or code, together
      with any administrative order, directed duty, request, license, authorization
      and permit of, and agreement with, any Governmental Authority, in each case
      relating to environmental, health, safety and/or land use matters.

     

    “ERISA”
      shall mean the Employee Retirement Income Security Act of 1974 of the United
      States and the regulations promulgated and rulings issued
      thereunder.

     

    “ERISA
      Affiliate” shall mean each person (as defined in Section 3(9) of
      ERISA) who together with the Borrower or any Subsidiary would be deemed to
      be a
“single employer:” (a) within the meaning of Section 414(b), (c), (m) or
      (o) of the Code or (b) as a result of the Borrower or any Subsidiary being
      or
      having been a general partner of such person.

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 8

          
            

          

        

        
          
          

        

      

    

    

    “ERISA
      Plan” shall mean: (a) any pension plan (as defined in Section 3(2) of
      ERISA), that is maintained or contributed to by (or to which there is an
      obligation to contribute of) any Credit Party or an ERISA Affiliate and (b)
      each
      such plan for the five year period after the latest date on which any Credit
      Party or an ERISA Affiliate maintained, contributed to or had an obligation
      to
      contribute to such plan.

     

    “Exchange
      Rate” shall mean, on any date of determination, the Peso/Dollar exchange
      rate published by Banco de México in the Federal Official Gazette
      (Diario Oficial de la Federación) as the rate “para solventar
      obligaciones denominadas en moneda extranjera pagaderas en la República
      Mexicana” on such date; provided that if Banco de México
ceases to publish such exchange rate or a substitute
      rate therefor, then
      the Exchange Rate shall be calculated by using the Peso/Dollar spot exchange
      rate (if any) published by Banamex as of the close of business on the preceding
      Mexican Business Day.

     

    “Excluded
      Taxes” shall have the meaning set forth in Section
      3.1(a).

     

    “Existing
      Credit Agreement” shall have the meaning set forth in the
      recitals.

     

    “Existing
      Liens” shall mean the Liens on the Properties securing the Existing Credit
      Agreement, as described in Schedule 4.1(l).

     

    “Export
      Credit Agency” shall mean an official non-Mexican financial institution for
      the promotion of exports registered in Book I (Libro I) Section 5
      (Sección 5) of the Foreign Banks, Financial Entities, Pension and
      Retirement Funds and Investment Funds Registry (Registro de Bancos,
      Entidades de Financiamiento, Fondos de Pensiones y Jubilaciones y Fondos de
      Inversión del Extranjero) maintained by Hacienda for purposes of the Rule
      3.21.2 of the Resolución Miscelánea Fiscal for the year 2006 and
      Article 196-II of the Mexican Income Tax Law (or any successor
      provision).

     

    “Expropriation
      Event” shall mean: (a) any condemnation, nationalization, rescate,
      temporary seizure, seizure, expropriation or similar act by (or on behalf of)
      a
      Governmental Authority of all or a material part of the Network and/or the
      other
      Property of the Borrower or any Subsidiary and/or of its Capital Stock, (b)
      any
      assumption by (or on behalf of) a Governmental Authority of control of all
      or a
      material part of the Property or business operations of the Borrower or any
      Subsidiary and/or of its Capital Stock, (c) any taking of any action by (or
      on
      behalf of) a Governmental Authority for the dissolution or disestablishment
      of
      the Borrower or any Subsidiary, (d) any taking of any action by (or on behalf
      of) a Governmental Authority that would prevent the Borrower and its
      Subsidiaries from carrying on their business or operations or a substantial
      part
      thereof or (e) any other act or series of acts attributable to a Governmental
      Authority; that in respect of the foregoing clauses (a) through
(e) individually or in the aggregate, in the reasonable judgment
      of the
      Required Lenders, has resulted in, or could reasonably be expected to result
      in,
      a Material Adverse Change.

     

    “Federal
      Funds Rate” shall mean, for any day, the rate set forth in the weekly
      statistical release designated as H.15(519), or any successor publication,
      published by the Federal Reserve Bank of New York on the preceding New York
      Business Day opposite the caption “Federal Funds (Effective)”; or, if for any
      relevant day such rate is not so published on any such preceding New York
      Business Day, then the rate for such day shall be the arithmetic mean as
      determined by the Administrative Agent of the rates for the last transaction
      in  

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 9

          
            

          

        

        
          
          

        

      

    

     

    overnight
      Federal funds arranged before 9:00 a.m. (New York City time) on that day by
      each of three leading brokers of Federal funds transactions in New York City
      selected by the Administrative Agent.

     

    “Federal
      Reserve Board” shall mean the Board of Governors of the Federal Reserve
      System of the United States and any Governmental Authority succeeding to any
      of
      its functions.

     

    “Federal
      Telecommunications Law” shall mean the Mexican Federal Telecommunications
      Law (Ley Federal de Telecomunicaciones), adopted in June
      1995.

     

    “Financial
      Statements” shall mean, with respect to any Person, such Person’s quarterly
      or annual balance sheet and statements of income, stockholders’ equity and cash
      flows for such fiscal period and for the period from the beginning of the
      then-current Fiscal Year to the end of such period, together with all notes
      thereto and with comparable figures for the corresponding period of the previous
      Fiscal Year. In the Credit Parties’ case, unless otherwise specified, all such
      Financial Statements shall be prepared on a Consolidated Basis.

     

    “Financing
      Documents” shall mean this Agreement, the Notes and the fee letter
      described in Section 2.7; it being understood that such fee
      letter is confidential and shall not be distributed to any Person other than
      the
      parties thereto and their representatives or as otherwise permitted under such
      fee letter.

     

    “Financing
      Parties” shall mean the Agents and the Lenders.

     

    “Fiscal
      Year” shall mean a calendar year.

     

    “Foreign
      Financial Institution” shall mean a bank
      or
      financial institution which is (or its main office is, if lending through a
      branch or agency) registered in Book I (Libro I) Section 1 (Sección
      1) of the Foreign Banks, Financial Entities, Pension and Retirement Funds
      and Investment Funds Registry (Registro de Bancos, Entidades de
      Financiamiento, Fondos de Pensiones y Jubilaciones y Fondos de Inversión del
      Extranjero) maintained by Hacienda for purposes of Rule 3.21.2 of the
Resolución Miscelánea Fiscal for the year 2006 and Article 195-I of the
      Mexican Income Tax Law (or any successor provisions).

     

    “Foreign
      Investment Law” shall mean the Mexican Foreign Investment Law (Ley de
      Inversión Extranjera).

     

    “GAAP”
      shall mean generally accepted accounting principles in Mexico in effect from
      time to time, applied on a consistent basis both as to classification of items
      and amounts.

     

    “Governmental
      Approval” shall mean the Material Concessions and any other action, order,
      authorization, consent, approval, right, franchise, license, lease, ruling,
      permit, tariff, rate, certification, exemption, filing or registration by or
      with any Governmental Authority.

     

    “Governmental
      Authority” shall mean any government, governmental department, commission,
      board, bureau, agency, regulatory authority, instrumentality, judicial
      or

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 10

          
            

          

        

        
          
          

        

      

    

    

     

    administrative
      body, domestic, foreign or multilateral, federal, state, local or otherwise,
      having jurisdiction over the matter(s) in question.

     

    “Guarantors”
      shall mean the Subsidiaries of the Borrower (other than the Immaterial
      Subsidiaries and the Unrestricted Subsidiaries).

     

    “Hacienda”
      shall mean the Ministry of Finance and Public Credit (Secretaría de Hacienda
      y Crédito Público), a ministry of the Mexican government.

     

    “Hedging
      Agreement” shall mean any agreement, whether or not in writing, relating to
      any transaction that is a rate swap, basis swap, forward rate transaction,
      commodity swap, commodity option, equity or equity index swap or option, bond,
      note or bill option, interest rate option, forward foreign exchange transaction,
      cap, collar or floor transaction, currency swap, cross-currency rate swap,
      swaption, currency option or any other, similar transaction (including any
      option to enter into any of the foregoing) or any combination of the foregoing,
      and, unless the context otherwise clearly requires, any master agreement
      relating to or governing any or all of the foregoing.

     

    “Immaterial
      Subsidiary” shall mean at any time any Subsidiary of the Borrower that
      meets the following criteria at such time: (a) such Subsidiary is Telecom
      Networks, Inc., Instalaciones y Contrataciones S.A. de C.V., Impulsora e
      Inmobiliaria Regional S.A. de C.V., Servicios Axtel S.A. de C.V., Conectividad
      Inalámbrica 7GHZ, S. de R.L., Avantel Recursos S.A. de C.V., Avantel
      Telecomunicaciones S.A. de C.V., Avantel Equipos S.A. de C.V., Avantel Servicios
      S.A. de C.V. or any other Subsidiary of the Borrower designated in writing
      by
      the Borrower to the Administrative Agent as an Immaterial Subsidiary, (b) at
      all
      times such Subsidiary’s portion of Consolidated EBITDA is less than 5% of the
      Consolidated EBITDA of the Borrower and its Subsidiaries for the four fiscal
      quarter period most recently ended, (c) such Subsidiary holds less than 5%
      of
      the consolidated assets of the Borrower and its Subsidiaries on a Consolidated
      Basis, (d) the loss of the Properties held by such Subsidiary, individually
      or
      in the aggregate, could not reasonably be expected to result in a Material
      Adverse Change, (e) such Subsidiary does not hold a Material Concession, and
      (f)
      the designation of such Subsidiary as an Immaterial Subsidiary has not been
      withdrawn by the Borrower in accordance with Section
      6.2(j)(iii).  The Immaterial Subsidiaries are Restricted
      Subsidiaries but not Guarantors.

     

    “Indebtedness”
      shall mean, for any Person (without duplication):

     

    (a)
      indebtedness for borrowed money,

     

    (b)
      obligations evidenced by bonds, debentures, notes, commercial paper, bills
      of
      exchange or other instruments (other than rental obligations under operating
      leases, whether or not evidenced by notes),

     

    (c)
      obligations to pay the deferred purchase price of Property or services
      (excluding trade accounts not in default and payable in the ordinary course
      of
      business within 180 days of the furnishing of the goods or
      services),

     

    (d)
      reimbursement obligations of such Person that are due and payable in respect
      of
      letters of credit, performance bonds or similar instruments, including
fianzas,

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 11

          
            

          

        

        
          
          

        

      

    

    

    (e)
      all
      liabilities secured by any Lien on any Property of such Person, whether or
      not
      such liabilities have been assumed by such Person,

     

    (f)
      Capitalized Lease Obligations (other than the Avantel/Telmex IRU),

     

    (g)
      net
      obligations in respect of any interest rate protection agreement or any currency
      swap, cap or collar agreement or similar arrangement entered into by such Person
      providing for the transfer or mitigation of interest rate, currency or other
      risks either generally or under specific contingencies (but without regard
      to
      any notional principal amount relating thereto), and

     

    (h)
      Contingent Obligations relating to any of the foregoing
      Indebtedness.

     

    “Indemnified
      Liabilities” shall have the meaning set forth in
Section 10.5.

     

    “Indemnified
      Person”shall have the meaning set forth in
Section 10.5.

     

    “Information”
      shall have the meaning set forth in Section 10.21.

     

    “Information
      Memorandum” shall mean the Confidential Arranger Package, dated November
      2006, prepared by the Credit Parties in connection with the syndication of
      the
      Loans.

     

    “Interest
      Period” shall mean with respect to any Loan: (a) initially, the period from
      the Closing Date to: (i) with respect to Dollar Loans, the last Business Day
      of
      December 2006, and (ii) with respect to Peso Loans, the date approximately
      30
      days thereafter, and (b) thereafter: (i) with respect to Dollar Loans, the
      period from the end of the preceding Interest Period to the last Business Day
      of
      the month one or three months thereafter, as selected by the Borrower, and
      (ii)
      with respect to Peso Loans, each 30 day period thereafter; provided
      that no Interest Period may end after the Maturity Date or after the first
      Principal Payment Date after the commencement of such Interest
      Period.

     

    “Investment”
      in any Person shall mean (without duplication): (a) the acquisition (whether
      for
      cash, securities, other Property, services or otherwise) or holding of Capital
      Stock or Indebtedness of such Person, or any agreement to make any such
      acquisition or to make any capital contribution to such Person, and (b) the
      making of any deposit with, or provision of Indebtedness to, such
      Person.

     

    “Judgment
      Currency” shall have the meaning set forth in
Section 10.16(a).

     

    “Judgment
      Currency Conversion Date” shall have the meaning set forth in
Section 10.16(a).

     

    “Lead
      Arranger” shall mean Citigroup Global Markets Inc.

     

    “Lenders”
      shall have the meaning set forth in the preamble.

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 12

          
            

          

        

        
          
          

        

      

    

    

    “Lending
      Office” shall mean, as to any Lender, the office(s) of such Lender
      specified as its “Lending Office” on Schedule 10.2 or such other
      office(s) as such Lender from time to time may notify the Borrower and the
      Administrative Agent in writing.

     

    “LIBOR”
      applicable to any Interest Period shall mean:

     

    (a)
      the
      rate for deposits in Dollars for a period equal (or substantially equal) to
      such
      Interest Period quoted on the second Business Day before the first day of such
      Interest Period, as such rate appears on the display designated as page “3750”
on the Telerate Service (or such other page as may replace page “3750” on the
      Telerate Service or such other service as may be nominated by the British
      Bankers’ Association as the information vendor for the purpose of displaying the
      British Bankers’ Association Interest Settlement Rates for Dollar deposits) (the
“Telerate Page”) as of 11:00 a.m. (London time) on such
      date,

     

    (b)
      if,
      as of 11:00 a.m. (London time) on any such date, such rate does not appear
      on the Telerate Page, then the arithmetic mean (rounded upwards, if necessary,
      to the next 1/100th of 1%) of the offered rates for deposits in Dollars for
      a
      period equal (or substantially equal) to such Interest Period quoted on the
      second Business Day before the first day of such Interest Period, as such rates
      appear on the display designated as page “LIBO” on the Reuters Monitor Money
      Rates Service (or such other page as may replace the “LIBO” page on that service
      for the purpose of displaying the London interbank offered rates of major banks)
      (the “Reuters Screen LIBO Page”) as of 11:00 a.m. (London time) on
      such date, if at least two such offered rates appear on the Reuters Screen
      LIBO
      Page, or

     

    (c)
      if,
      as of 11:00 a.m. (London time) on any such date, such rate does not appear
      on either the Reuters Screen LIBO Page or the Telerate Page, then the arithmetic
      mean (rounded upwards, if necessary, to the next 1/100th of 1%) of the rate
      for
      deposits in Dollars for a period equal (or substantially equal) to such Interest
      Period that are offered to the Administrative Agent by two or more leading
      banks
      in the London interbank market;

     

    in
      each
      case as determined by the Administrative Agent and notified to the Dollar
      Lenders and the Borrower on such second prior Business Day (or, with respect
      to
      any LIBOR Loans commencing on the Closing Date, on the Closing
      Date).

     

    “LIBOR
      (Reserve Adjusted)” shall mean, with respect to a LIBOR Loan for the
      relevant Interest Period, the quotient (rounded upwards, if necessary, to the
      nearest 1/100th of 1%) of: (a) LIBOR for such Interest Period divided
      by (b) one minus the Reserve Requirement applicable to such
      Interest Period.

     

    “LIBOR
      Loan” shall mean a Dollar Loan that bears interest based upon LIBOR
      (Reserve Adjusted).

     

    “Lien”
      shall mean, with respect to any Property of any Person, any mortgage, deed
      of
      trust, hypothecation, security trust, fiduciary transfer of title, assignment
      by
      way of security, lien, pledge, charge, sale and lease-back arrangement,
      easement, servitude, servidumbre, trust arrangement or security
      interest or encumbrance of any kind in respect of such 

    

    
      
        
          
          

        

        
          Credit
            Agreement 13

          
            

          

        

        
          
          

        

      

    

     

    Property, or
      any preferential arrangement having the practical and/or economic effect of
      constituting a security interest with respect to the payment of any obligation
      with, or from the proceeds of, any Property of any kind (and a Person shall
      be
      deemed to own subject to a Lien any Property that it has acquired or holds
      subject to the interest of a vendor or lessor under any conditional sale
      agreement, Capital Lease or other title retention agreement relating to such
      Property). For the purpose of clarification, a Lien shall include any sales
      (including “true sales”) of Property in connection with any securitization or
      similar transaction.

     

    “Loans”
      shall mean the Dollar Loans and the Peso Loans.

     

    “Material
      Adverse Change” shall mean: (a) a material adverse change in the
      operations, business and/or condition (financial or otherwise) of the Credit
      Parties taken as a whole since December 31, 2005, or (b) an impairment of
      the ability of the Credit Parties to perform any of their respective material
      obligations under any Financing Document.  For purposes hereof, a
      Material Adverse Change shall not be deemed to have occurred to the extent
      that
      such change with respect to the Credit Parties taken as a whole is as a result
      of a condition or event related solely to the Avantel Companies and such
      condition or event was existing prior to or as of the time of the
      Acquisition.

     

    “Material
      Concession” shall mean the concessions of the Borrower and its Subsidiaries
      listed on Schedule 6.1(k).

     

    “Material
      Document” shall mean the Material Concessions and the Acquisition
      Documentation.

     

    “Material
      Obligations” shall have the meaning set forth in
Section 7.1(b).

     

    “Maturity
      Date” shall mean the Principal Payment Date in November 2011.

     

    “Mexican
      Business Day” shall mean any day other than a Saturday or Sunday and other
      than any other day on which commercial banks in México City, México are
      authorized or required by law to close.

     

    “Mexican
      Financial Institution” shall mean a commercial bank organized under the
      Credit Institutions Law (Ley de Instituciones de Crédito) of
      México.

     

    “México”
      shall mean the United Mexican States.

     

    “Moody’s”
      shall mean Moody’s Investors Service, Inc.

     

    “Net
      Worth” shall mean the consolidated net worth of the Credit Parties,
      determined on a Consolidated Basis.

     

    “Network”
      shall mean the public telecommunications network (red pública de
      telecomunicaciones) (including the fiber optic cable, cable border
      crossings, interconnection points, switching centers and operating and office
      support systems and facilities) of the Credit Parties for the provision of
      telecommunications services (including any special or value-

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 14

          
            

          

        

        
          
          

        

      

    

    

     

    added
      telecommunications services) that the Credit Parties may offer from time to
      time.

     

    “New
      York Business Day” shall mean any day other than a Saturday or Sunday and
      other than any other day on which commercial banks in New York City, New York
      are authorized or required by law to close.

     

    “Non-U.S.
      Pension Plan” shall mean any plan, fund (including any superannuation fund)
      or other similar program established or maintained outside the United States
      of
      America by the Borrower or any Restricted Subsidiary primarily for the benefit
      of employees of the Borrower or any Restricted Subsidiary residing outside
      the
      United States of America, which plan, fund or other similar program provides
      (or
      results in) retirement income, a deferral of income in contemplation of
      retirement or payments to be made upon termination of employment, and which
      plan
      is not subject to ERISA or the Code.

     

    “Note”
      shall mean a non-negotiable promissory note (pagaré no negociable)
      executed by the Borrower (and executed por aval by the Guarantors) in
      favor of a Lender pursuant to Section 2.2, substantially in the form
      of Exhibit A-1 (for Dollar Loans) or Exhibit A-2 (for
      Peso Loans).

     

    “Notice
      of Borrowing” shall mean a notice to the Administrative Agent substantially
      in the form of Exhibit B.

     

    “Notice
      Office” shall mean the office of the Administrative Agent identified on
Schedule 10.2 as its office for notices or such other office as the
      Administrative Agent may specify from time to time to the other parties
      hereto.

     

    “Obligations”
      shall mean all loans, advances, debts, liabilities and other payment obligations
      of every kind and description, howsoever arising, owed by a Credit Party under
      a
      Financing Document (whether or not evidenced by any note or other instrument
      and
      whether or not for the payment of money), direct or indirect, absolute or
      contingent, due or to become due, now existing or hereafter arising, including
      all interest, fees, charges, expenses, Indemnified Liabilities and Attorney
      Costs payable by a Credit Party.

     

    “Ordinary
      Course of Business” shall mean, with respect to any sale, assignment,
      transfer, conveyance, lease or other disposition of any Property of the Borrower
      or any Restricted Subsidiary, any such transaction that is in the ordinary
      course of business of the Borrower or such Restricted Subsidiary and consistent
      with practices in the Mexican telecommunications industry, including: (a) any
      single transaction (or series of related transactions) relating to Property
      having a book value (under GAAP) of $25,000,000 (or its equivalent in any other
      currency) or less, (b) leases and/or sales of Customer Premises Equipment to
      customers, (c) divestitures of obsolete assets and (d) sales or other
      dispositions of assets for the purpose of upgrading or replacing such assets
      with assets of equal or greater value and utility (so long as the replacement
      of
      such assets shall be effected substantially contemporaneously with such sale
      or
      other disposition); provided that, except for transactions described in
clause (b), any single such transaction (or series of related
      transactions) relating to Property having a book value under GAAP in excess
      of
      $25,000,000 (or its equivalent in any other currency) shall not be considered
      to
      be in the Ordinary Course of Business.

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 15

          
            

          

        

        
          
          

        

      

    

    

     

     

    “Organizational
      Documents” shall mean, with regard to any Person: (a) its articles of
      incorporation or other similar document, (b) its estatutos sociales,
      by-laws or other similar document, (c) any certificate of designation or
      instrument relating to the rights of preferred stockholders or other equity
      holders of such Person, and (d) any stockholder rights agreement, registration
      rights agreement or other similar agreement relating to such
      Person.

     

    “Other
      Taxes” shall mean any present or future stamp, court or documentary taxes
      or any other excise or property taxes or charges of a similar nature that are
      levied by any Governmental Authority and that arise from any payment of any
      Obligations or from the execution, delivery, performance, enforcement or
      registration of, or otherwise with respect to, any Financing
      Document.

     

    “Participant”
      shall have the meaning set forth in Section 10.8(c).

     

    “Payment
      Date” shall mean, as to any Loan, the Business Day at the end of each
      Interest Period applicable thereto (i.e., the Business Day to which an
      Interest Period runs even though such Business Day is not within such Interest
      Period).

     

    “Payment
      Office” shall mean, with respect to payments in Dollars, the Administrative
      Agent’s Payment Office, and with respect to payments in Pesos, the Peso Agent’s
      Payment Office.

     

    “Permitted
      Acquisition” shall mean the purchase or acquisition by the Borrower or a
      Restricted Subsidiary of the Capital Stock or Properties of another Person
      or a
      business unit or other integrated operations of another Person, which in each
      such case shall engage in the Business; provided that: (a) after giving
      effect to such purchase or acquisition of Capital Stock, such Person shall
      be a
      wholly-owned Subsidiary of the Borrower, (b) immediately before and after giving
      effect thereto, no Unmatured Default or Default then exists or would result
      therefrom, and (c) the Borrower is in compliance with the financial covenants
      set forth in Section 6.2(g), calculated on a pro forma basis
      (for a period, in the case of the ratios, of the four fiscal quarters most
      recently ended for which Financial Statements have been prepared) as though
      such
      purchase or acquisition had occurred at the beginning of such period, as
      evidenced by a certificate of an Authorized Officer of the Borrower delivered
      to
      the Administrative Agent demonstrating such compliance.

     

    “Permitted
      Dollar Investments” shall mean any of the following, denominated and
      payable in Dollars: (a) securities issued or directly and fully guaranteed
      by
      the United States government or any agency or instrumentality thereof with
      a
      maturity of less than one year, (b) certificates of deposit and eurodollar
      time
      deposits with a maturity of not later than six months, bankers’ acceptances with
      a maturity of not later than six months and overnight bank deposits, in each
      case with any U.S. commercial bank of recognized stature having capital and
      surplus in excess of $500,000,000 and having a commercial paper rating (or
      the
      holding company thereof having a commercial paper rating) of “A-1” or better by
      S&P or “P-1” or better by Moody’s, and that is a member of the Federal
      Reserve System, (c) commercial paper rated “A-1” or better by S&P or “P-1”
or better by Moody’s with a maturity of less than 

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 16

          
            

          

        

        
          
          

        

      

    

    

     

    one
      year,
      (d) guaranteed investment contracts with a maturity of less than one year and
      entered into with (or fully guaranteed by) financial institutions whose
      long-term unsecured non-credit enhanced indebtedness is rated “A-” or better by
      S&P or “A2” or better by Moody’s, and (e) investments in money market funds
      having a rating from each of S&P and Moody’s in the highest investment
      category granted thereby; provided that, notwithstanding the foregoing,
      no Permitted Dollar Investments shall be permitted with a maturity of later
      than
      the next Payment Date for any Loan unless, after giving effect to such later
      maturing Permitted Dollar Investments, other Permitted Dollar Investments having
      a maturity of not later than such next Payment Date remain in an amount equal
      to
      the aggregate amount of the principal, if any, and interest payment scheduled
      to
      be payable on such next Payment Date for any Loan (determined using the interest
      rate(s) applicable to the Loans on the date of determination as the interest
      rate(s) applicable until such next Payment Date).

     

    “Permitted
      Hedging Obligations” shall mean obligations of a Person under Hedging
      Agreements that are (or were) entered into by such Person in the ordinary course
      of business for the purpose of directly mitigating risks associated with:
      (a) raw materials purchases, (b) interest or currency exchange rates,
      (c) operating expenses or other anticipated obligations of such Person or
      (d) other liabilities, commitments or assets held or reasonably anticipated
      by such Person, but not for speculative purposes.

     

    “Permitted
      Holders” shall mean (a) any Person that is an Affiliate of the Borrower
      prior to an event giving rise to a Change of Control (and not established as
      an
      Affiliate in order to effect what would otherwise be a Change of Control) and (b) each
      of  the following
      shareholders of the Borrower: Thomas Milmo Zambrano, Ma. Luisa Santos de Hoyos,
      Alberto Santos de Hoyos, Tomás Milmo Santos, Impra Café, S.A. de C.V., Alberto
      Garza Santos, David Garza Santos, Federico Garza Santos, Marcela Garza Santos,
      Yolanda Garza Santos, Blackstone Capital Partners III Merchant Banking Fund,
      L.P., Blackstone Family Investment Partnership III, L.P., Tapazeca sprl, New
      Hampshire Insurance Company, LAIF X sprl, WorldTel Mexico Telecom and Citigroup,
      Inc., and their respective Affiliates, heirs, legal representatives and
      successors.

     

    “Permitted
      Investments” shall mean:

     

    (a)
      with
      respect to Dollars, Permitted Dollar Investments, and

     

    (b)
      with
      respect to Pesos, Investments in any of the following, denominated and payable
      in Pesos:

     

    (i)
      obligations with a maturity of less than one year that are direct obligations
      of
      the Mexican government or of entities having the statutory guarantee of the
      Mexican government, or obligations that are expressly and unconditionally
      guaranteed by the Mexican government,

     

    (ii)
      obligations with a maturity of less than one year of Mexican commercial banks
      of
      recognized stature, supervised by the Mexican National Banking and Securities
      Commission, with a capital and surplus of at least $250,000,000 (or its
      equivalent in other currencies); provided that the aggregate
      Investments of the 

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 17

          
            

          

        

        
          
          

        

      

    

     

     

    Credit
      Parties in Mexican commercial banks not having Mexican domestic ratings of
      AA+(mex) or above from Fitch and mxA+ or above from S&P shall not exceed
      $25,000,000 (or its equivalent in Pesos) at any time,

     

    (iii)
      commercial paper of Mexican corporations with a maturity of less than one year
      and rated at least “A3” by Standard & Poor’s, S.A. de C.V., and

     

    (iv)
      repurchase agreements with a maturity of less than one year, in each case
      related to any of the Investments described in clauses (i) through
(iii), and that are fully collateralized by such Investments, with
      any
      Mexican commercial bank that meets the criteria outlined in
clause (ii); provided that the aggregate amount invested in
      such repurchase agreements shall not exceed $25,000,000 (or its equivalent
      in
      Pesos) at any time.

     

    “Permitted
      Joint Venture/Partnership” shall mean a joint venture or partnership to
      which a Credit Party is party; provided that at the time of, and after
      giving effect to, any investment by such Credit Party in a joint venture or
      partnership, such joint venture or partnership is (a) a Guarantor or is an
      Unrestricted Subsidiary meeting the requirements of Section 6.2(j)(iv) or
      (b) if such joint venture or partnership is neither a Guarantor nor an
      Unrestricted Subsidiary, at least 80% of the Consolidated EBITDA of the Borrower
      and its Subsidiaries on a pro forma basis for the last four fiscal
      quarters is derived from Credit Parties.

     

    “Permitted
      Lien” shall have the meaning set forth in
Section 6.2(a).

     

    “Permitted
      Refinancing” shall mean a refinancing, refunding, renewal or extension of
      any Indebtedness, provided that: (a) the principal amount of any such
      Indebtedness is not increased above the principal amount thereof outstanding
      immediately prior to such refinancing, refunding, renewal or extension, (b)
      the
      direct and contingent obligors with respect to such Indebtedness are not
      changed, (c) such Indebtedness shall not be secured by any Property other than
      the Property securing the Indebtedness being refinanced, refunded, renewed
      or
      extended and (d) if Permitted Subordinated Indebtedness is being refinanced,
      refunded, renewed or extended, then such Indebtedness shall be subordinated
      to
      the Obligations at least to the same extent as the Permitted Subordinated
      Indebtedness being refinanced, refunded, renewed or extended.

     

    “Permitted
      Subordinated Indebtedness” shall mean unsecured Indebtedness for borrowed
      money junior to and subordinate to the Obligations on terms and conditions
      satisfactory to the Required Lenders, including no principal payments thereon
      to
      be due prior to the later of the first anniversary of the Maturity Date and
      payment in full of the Obligations and no other payments to be made thereon
      if
      an Unmatured Default or Default exists or would result therefrom.

     

    “Person”
      shall mean an individual, partnership, joint venture, corporation, limited
      liability company, trust, unincorporated organization, Governmental Authority
      or
      other entity of whatever nature.

     

    “Peso
      Agent” shall mean Banamex.

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 18

          
            

          

        

        
          
          

        

      

    

    

    “Peso
      Agent’s Payment Office” shall mean, with respect to payments in Pesos, the
      address for such payments to the Peso Agent set forth on
Schedule 10.2 or such other address as the Peso Agent may specify
      from time to time to the other parties hereto.

     

    “Peso
      Commitment” shall mean, with respect to each Lender providing such a
      commitment, the Peso amount set forth opposite its name on
Schedule 2.1 under the heading “Peso Commitments.”

     

    “Peso
      Lender” shall mean a Lender with a Peso Commitment or a Peso
      Loan.

     

    “Peso
      Loans” shall mean the Loans in Pesos provided to the Borrower by the
      Lenders with Peso Commitments.

     

    “Peso
      Rate” applicable to any Interest Period with respect to Peso Loans shall
      mean the Interbank Interest Equilibrium Rate (Tasa de Interés Interbancaria
      de Equilibrio) (the “TIIE”) for a designated maturity of 28 days,
      as most recently calculated and published in the Federal Official Gazette
      (Diario Oficial de la Federación) by Banco de México on the
      commencement of such Interest Period (and, if such date shall not be a Mexican
      Business Day, the immediately preceding Mexican Business Day).

     

    “Pesos”
      or “P$” shall mean the lawful currency of the United Mexican
      States.

     

    “Peso
      Tranche” shall mean the portion of the funding provided pursuant to the
      Commitments denominated in Pesos.

     

    “Platform”
      shall have the meaning set forth in Section 10.2(d).

     

    “Principal
      Payment Date” shall mean the last Business Day of each February, May,
      August and November, beginning with November 2009, until the Maturity
      Date.

     

    “Process
      Agent” shall have the meaning set forth in
Section 4.1(i).

     

    “Property”
      shall mean any right or interest in or to property, assets, rights or revenues
      of any kind whatsoever, whether real, personal or mixed, whether existing or
      future and whether tangible or intangible, including intellectual
      property.

     

    “Pro
      Rata Share” shall mean, as to any Lender at any time, the percentage
      equivalent (expressed as a decimal, rounded to the tenth decimal place, with
      .00000000005 rounded upward) at such time of such Lender’s Loans and unused
      Commitments then outstanding divided by the combined Loans and unused
      Commitments then outstanding of all Lenders; provided that if any such
      determination is made with respect to a particular Tranche or type of
      Commitment, then only the Loans and unused Commitments of the Lenders of such
      Tranche or type of Commitment shall be considered; and provided further
      that, for the purpose of such determination where both Tranches are combined,
      the Peso Loans shall be calculated as if they were converted into Dollars at
      the
      Exchange Rate as of the date of determination.

     

    “Register”
      shall have the meaning set forth in Section 10.8(e).

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 19

          
            

          

        

        
          
          

        

      

    

    

    “Release
      Documentation” shall mean the documentation listed in Schedule 4.1(l)
      providing for the termination and release of the Existing Liens, in form and
      substance satisfactory to the Administrative Agent.

     

    “Replacement
      Lender” shall have the meaning set forth in
Section 3.7.

     

    “Required
      Lenders” shall mean Lenders holding more than 50% of the aggregate
      principal amount of the Loans and unused Commitments then outstanding (or with
      respect to a single Tranche or type of Commitment, more than 50% of the
      aggregate principal amount of the Loans and unused Commitments outstanding
      under
      such Tranche or type of Commitment); provided that any Loans held by
      any Credit Party or any Credit Party Affiliate shall not be considered in any
      such determination (i.e., the Required Lenders, including for the
      following proviso, shall be determined as if such Loans and unused Commitments
      did not exist) and such holders shall not be entitled to vote thereon; and
      provided further that, for the purpose of such determination with respect
      to all Loans under this Agreement, the Peso Loans shall be calculated as if
      they
      were converted into Dollars at the Exchange Rate as of the date of
      determination.

     

    “Reserve
      Requirement” shall mean, relative to an Interest Period for a LIBOR Loan,
      the reserve percentage (expressed as a decimal) equal to the maximum aggregate
      reserve requirement, if any (including all basic, emergency, supplemental,
      marginal and other reserves and taking into account any transitional adjustments
      or other scheduled changes in reserve requirements), specified under regulations
      issued from time to time by the Federal Reserve Board or other Governmental
      Authorities in any jurisdiction and then applicable to assets or liabilities
      consisting of and including “Eurocurrency liabilities,” as defined in
      Regulation D (or applicable to similar liabilities under any successor or
      similar regulation in any jurisdiction), having a term approximately equal
      to
      such Interest Period.

     

    “Restricted
      Payment” shall mean any payment or distribution by the Borrower or a
      Restricted Subsidiary, directly or indirectly, whether in cash or other Property
      or in obligations of the Borrower or such Restricted Subsidiary: (a) of any
      dividends on its Capital Stock, (b) in respect of the purchase, acquisition,
      redemption, deduction, retirement, defeasance or other
      acquisition for value of any of its Capital Stock or any warrants, rights or
      options to acquire such Capital Stock, now or hereafter outstanding, (c) in
      respect of the return of any capital to its stockholders as such, (d) in
      connection with any distribution or exchange of assets in respect of its Capital
      Stock, warrants, rights, options, obligations or securities to or with its
      stockholders as such, (e) in return of any irrevocable capital contributions,
      (f) other than the Obligations, in respect of any principal, interest, fees
      or
      expenses relating to any Investment by any Credit Party Affiliates (including
      Indebtedness of any Credit Party owing to any Credit Party Affiliate) or (g)
      in
      respect of any Permitted Subordinated Indebtedness.

     

    “Restricted
      Subsidiary” shall mean a Subsidiary that is not an Unrestricted
      Subsidiary.  For the purpose of clarification, a Restricted Subsidiary
      need not be a Guarantor if it is an Immaterial Subsidiary.

     

    “RPPC”
      shall mean the Public Registry of Property and Commerce (Registro Público de
      Propiedad y Comercio) of the corporate domicile of a Person organized under
      the laws of México or of the location of a Property, as the case may
      be.

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 20

          
            

          

        

        
          
          

        

      

    

    

    “S&P”
      shall mean Standard & Poor’s Ratings Services, a division of The McGraw-Hill
      Companies, Inc.

     

    “SCT”
      shall mean the Ministry of Communication and Transportation (Secretaría de
      Comunicaciones y Transportes), a ministry of the Mexican
      government.

     

    “SEC”
      shall mean the United States Securities and Exchange Commission.

     

    “Solvent”
shall
      mean,
      with respect to any Person as of any date of determination, that, as of such
      date, (a) the value of the assets of such Person (both at fair value and present
      fair saleable value) is greater than the total amount of liabilities (including
      contingent and unliquidated liabilities) of such Person, (b) such Person is
      able
      to pay all liabilities of such Person as such liabilities mature, (c) such
      Person does not have unreasonably small capital with which to conduct its
      business and (d) such Person may not be declared in concurso mercantíl
      in accordance with Articles 9, 10 and 11 of the Mexican Bankruptcy Law (Ley
      de Concursos Mercantiles).  In computing the amount of contingent
      or unliquidated liabilities at any time, such liabilities shall be computed
      at
      the amount that, in light of all the facts and circumstances existing at such
      time, represents the amount that can reasonably be expected to become an actual
      or matured liability.

     

    “Subsidiary”
      shall mean, as to any Person: (a) any other Person who is directly or indirectly
      Controlled by such first Person or (b) any other Person at least 50% of the
      Voting Stock or the Capital Stock of which is owned by such first Person; but,
      with respect to the Borrower. For the purpose of the Financing Documents, any
      Person who is not the Borrower but would be consolidated with the Credit Parties
      on a Consolidated Basis shall be considered to be a Subsidiary of the Credit
      Party(ies) owning Capital Stock therein. Unless otherwise expressly indicated
      herein, reference herein to a Subsidiary refers to a Subsidiary of the Credit
      Parties.

     

    “Subsidiary
      Joinder Agreement” shall mean an agreement executed by a Guarantor in the
      form of Exhibit D.

     

    “Substitute
      Rate” shall have the meaning set forth in Section
      3.5(c).

     

    “Taxes”
      shall mean any present and future tax, assessment, levy, impost, duty,
      deduction, fee, withholding or other charge of whatever nature required by
      any
      Applicable Law (including any penalties or similar amounts with respect thereto
      or with respect to the non-payment thereof).

     

    “Telmex”
      shall mean Teléfonos de México, S.A. de C.V. and its Affiliates, including
      TelNor.

     

    “Telmex
      Network” shall mean the telecommunications network owned and operated by
      Telmex in México.

     

    “TelNor”
      shall mean Teléfonos del Noroeste, S.A. de C.V.

     

    “TIIE”
      shall have the meaning assigned thereto in the definition of “Peso
      Rate.”

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 21

          
            

          

        

        
          
          

        

      

    

    

    “Tranche”
      shall mean each of the Dollar Tranche and the Peso Tranche.

     

    “Transaction
      Documents” shall mean the Financing Documents and the Material
      Documents.

     

    “Type”
      shall mean a LIBOR Loan or a Base Rate Loan.

     

    “United
      States” and “U.S.” shall each mean the United States of
      America.

     

    “Unmatured
      Default” shall mean any event or circumstance that, with the giving of
      notice, the expiration of any grace period or both, would (if not cured, waived
      or otherwise remedied during such time) constitute a Default.

     

     

    “Unrestricted
      Subsidiary” shall mean at any time any Subsidiary of the Borrower that
      meets the following criteria at such time: (a) such Subsidiary is a newly
      created or acquired Subsidiary of the Borrower designated in writing by the
      Borrower to the Administrative Agent as an Unrestricted Subsidiary,
provided that after giving effect to such designation the Borrower is
      in compliance with Section 6.2(j), (b) the loss of the Properties held by
      such Subsidiary, individually or in the aggregate, could not reasonably be
      expected to result in a Material Adverse Change, (c) such Subsidiary does not
      hold a Material Concession, and (d) the designation of such Subsidiary as an
      Unrestricted Subsidiary has not been withdrawn by the Borrower in accordance
      with Section 6.2(j)(iv).

     

    “Voting
      Stock” shall mean Capital Stock in any Person, the holders of which are
      ordinarily, in the absence of contingencies, entitled to vote for the election
      of directors (or individuals performing similar functions) of such Person,
      even
      if the right so to vote has been suspended by the happening of such a
      contingency.

     

    SECTION
      1.2 Other Interpretive Provisions. (a) The
      meanings of defined terms are equally applicable to the singular and plural
      forms of the defined terms.

     

    (b)
      The
      words “hereof,” “herein,” “hereunder” and similar words refer to this Agreement
      as a whole and not to any particular provision of this Agreement; and any
      subsection, Section, Article, Schedule and Exhibit references are to this
      Agreement unless otherwise specified.

     

    (c)
      The
      term “documents” includes any and all instruments, documents, agreements,
      certificates, indentures, notices and other writings, however
      evidenced.

     

    (d)
      The
      term “including” is not limiting and shall mean “including without
      limitation.”

     

    (e)
      Unless otherwise specified, in the computation of periods of time from a
      specified date to a later specified date, the word “from” shall mean “from and
      including,” the words “to” and “until” each shall mean “to but excluding,” and
      the word “through” shall mean “to and including.”

     

    (f)
      Unless otherwise expressly provided herein: (i) references to agreements
      (including this Agreement) and other documents shall be deemed to include all
      subsequent amendments and other modifications thereto, but only to the extent
      such amendments and other modifications are not prohibited by any Financing
      Document, and (ii) references to any 

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 22

          
            

          

        

        
          
          

        

      

    

    

    Applicable
      Law are to be construed as including all statutory and regulatory provisions
      or
      rules consolidating, amending, replacing, supplementing, interpreting or
      implementing such Applicable Law.

     

    (g)
      The
      Table of Contents, captions and headings of this Agreement are for convenience
      of reference only and shall not affect the interpretation of this
      Agreement.

     

    (h)
      The
      Financing Documents may use several different limitations, tests or measurements
      to regulate the same or similar matters. All such limitations, tests and
      measurements are cumulative and shall be performed in accordance with their
      terms. Unless otherwise expressly provided herein, any reference to any action
      of any Agent, the Lenders or the Required Lenders by way of consent, approval
      or
      waiver shall be deemed modified by the phrase “in its/their sole good faith
      discretion.”

     

    (i)
      The
      Financing Documents are the result of negotiations among and have been reviewed
      by counsel to the Agents, the Lead Arranger, the Credit Parties and the Lenders,
      and are the products of all such Persons. Accordingly, they shall not be
      construed against the Lenders, the Lead Arranger or any Agent merely because
      of
      any such Person’s involvement in their preparation.

     

    (j)
      Except as specifically provided herein, any financial covenant or other
      provision hereof that requires the combination of Dollars and/or Pesos shall
      be
      determined in Dollars applying the Exchange Rate; provided that the
      exchange rate used in connection with the preparation of any income statement
      or
      other Financial Statement that, unlike a balance sheet, is based upon events
      that occur throughout the reporting period shall be calculated in accordance
      with GAAP using the Exchange Rates so published throughout the applicable
      period.

     

    SECTION
      1.3 Accounting Principles. Unless the context
      otherwise clearly requires, all accounting terms not expressly defined herein
      shall be construed, and all financial computations required under this Agreement
      shall be made, in accordance with GAAP.

     

     

    ARTICLE
      II

    THE
      CREDITS

     

    SECTION
      2.1 Amounts and Terms of Commitments. (a) Each
      Dollar Lender severally agrees, on the terms and conditions set forth herein,
      to
      make Dollar Loans to the Borrower on the Closing Date in an aggregate principal
      amount not to exceed such Lender’s Dollar Commitment.

     

    (b)
      Each
      Peso Lender severally agrees, on the terms and conditions set forth herein,
      to
      make Peso Loans to the Borrower on the Closing Date, in an aggregate principal
      amount not to exceed such Lender’s Peso Commitment.

     

    (c)
      The
      parties hereto hereby acknowledge and agree that if the Loans are not funded
      on
      the Closing Date as a result of any failure to satisfy the requirements in
      Sections 4.1 and 4.2, then this Agreement (and the other
      Financing Documents) shall immediately and automatically terminate except for
      such provisions hereof and thereof  that (by their terms) survive
      termination.

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 23

          
            

          

        

        
          
          

        

      

    

    

     

     

    (d)
      Within the limits of each Lender’s Commitments, and subject to the other terms
      and conditions hereof, the Borrower may request Loans hereunder pursuant to
      Section 2.3(a) and make prepayments under Section 2.4. Loans
      borrowed, once repaid, may not be reborrowed except to the extent provided
      in
Section 3.2(b). Upon the making of the Loans on the Closing Date,
      all unfunded Commitments (if any) shall immediately and automatically
      terminate.

     

    SECTION
      2.2 Notes. (a) The Loans made by each Lender shall
      be evidenced by one Note for each Lender per Tranche, subscribed by the Borrower
      and executed in guaranty (por aval) by each of the Guarantors. Each
      Lender shall record in its records the date, Type (for Dollar Loans) and amount
      of each Loan made by it and the amount of each payment of principal made by
      (or
      on behalf of) the Borrower with respect thereto. Each Lender’s record shall
      constitute prima facie evidence of the accuracy of the information so
      recorded; provided that the failure of a Lender to make, or an error in
      making, a notation thereon with respect to any Loan shall not limit or otherwise
      affect the Obligations of any Credit Party hereunder or under any such Note
      to
      such Lender.

     

    (b)
      Promptly upon: (i) a conversion of Dollar Loans from LIBOR Loans to Base Rate
      Loans or vice versa in accordance with Section 2.6(g), (ii)
      the election of the Borrower in accordance with Section 2.6(e) to
      change the duration of the Interest Period, (iii) the addition of a new
      Guarantor, (iv) any change in organizational structure pursuant to
Section 6.2(i) and/or (v) any assignment of Loans pursuant to
Section 10.8, the Borrower and each Guarantor (por aval) shall,
      upon the request of the Administrative Agent, at the expense of the Borrower,
      promptly execute and deliver to the Administrative Agent for the account of
      each
      of the relevant Lenders, in exchange for the Note evidencing the relevant Loans
      of such Lender theretofore delivered to such Lender, a new Note or Notes payable
      to such Lender and/or such Lender’s assignee, as applicable, dated the Closing
      Date, in a principal amount equal to the principal amount then outstanding
      of
      such Note and otherwise duly completed.

     

    SECTION
      2.3 Procedure for Borrowing. (a) The Borrower
      shall deliver to the Administrative Agent (by no later than 9:00 a.m. (New
      York City time) on the Closing Date) an irrevocable written notice in the form
      of a Notice of Borrowing, requesting that the Loans be made on the Closing
      Date.
      Such Notice of Borrowing: (i) shall be delivered in accordance with the last
      paragraph of Section 4.1 and (ii) shall specify: (A) the requested
      amounts of the Loans for each Tranche (which were requested on a pro
      rata basis) to be borrowed by the Borrower, and (B) for the Dollar Loans,
      the Type of Loans requested and, if the Dollar Loans are LIBOR Loans, the
      Interest Period therefor. The Administrative Agent will notify each Lender
      on or
      before the Closing Date of the borrowing request.

     

    (b)
      Subject to the conditions precedent set forth in Article IV, each
      Lender severally agrees to make the amount of its Pro Rata Share of the
      requested Loan of the applicable Tranche available to the Administrative Agent
      for the account of the Borrower (in the case of Dollar Loans) at the
      Administrative Agent’s applicable Payment Office and (in the case Peso Loans) at
      the Peso Agent’s Payment Office, in each case by 10:00 a.m. (New York City
      time) on the Closing Date in funds immediately available to the Administrative
      Agent.  Upon

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 24

          
            

          

        

        
          
          

        

      

    

    

    fulfillment
      of the conditions precedent to disbursing the Loans in Article IV, the
      Administrative Agent shall deliver the proceeds of the Loans to (or on behalf
      of) the Borrower as provided in the Notice of Borrowing.

     

    SECTION
      2.4 Prepayments: The Borrower shall have the right
      to prepay the Loans of either or both Tranches, in whole or in part, without
      premium or penalty, from time to time on the following terms and conditions:
      (i)
      the Borrower shall give the Administrative Agent irrevocable written notice
      at
      its Notice Office (of which the Administrative Agent shall promptly notify
      each
      of the Lenders) of its intent to prepay the Loans of one or both Tranches and
      the amount of such prepayment, which notice shall be given by the Borrower
      at or
      prior to 10:00 a.m. (New York City time) at least three Business Days (but
      no more than 30 days) before the date of such prepayment, (ii) each partial
      prepayment of Loans shall be in an aggregate principal amount of at least
      $10,000,000 (or, for the Peso Loans, the Dollar/Peso Equivalent thereof) and,
      if
      greater, in an integral multiple of $1,000,000 (or, for the Peso Loans, the
      Dollar/Peso Equivalent thereof), (iii) each prepayment of Loans pursuant to
      this
      paragraph shall be applied to the Loans of each Lender under the applicable
      Tranche in accordance with such Lender’s pro rata share of Loans under
      such Tranche and shall be applied within such Tranche to reduce the remaining
      scheduled principal repayments of such Tranche on a pro rata basis and
      (iv) each prepayment of Loans pursuant to this paragraph shall be applied as
      provided in Section 2.9(d); it being understood that the
      Borrower shall deliver to the Administrative Agent such additional amounts
      (if
      any) necessary so that the amount allocated to the principal prepayment of
      the
      Loans is the amount indicated to be prepaid on the notice of prepayment. If
      such
      notice is given by the Borrower, then the Borrower shall make such prepayment
      (and the payment amount specified in such notice shall be due and payable)
      on
      the date specified therein, together with accrued interest to such date on
      the
      amount prepaid and any amounts required pursuant to
Section 3.4.

     

    SECTION
      2.5 Repayment. The Borrower shall repay the
      principal of all Loans in full, plus all accrued and unpaid interest
      thereon, on each Principal Payment Date as follows:

     

    
      	
              Principal
                Payment Date

            	
              Principal
                Payment on Dollar Loans

            	
              Principal
                Payment on Peso Loans

            
	
              November
                2009

            	
              $11,022,513.33

            	
              P$104,236,241.67

            
	
              February
                2010

            	
              $11,022,513.33

            	
              P$104,236,241.67

            
	
              May
                2010

            	
              $11,022,513.33

            	
              P$104,236,241.67

            
	
              August
                2010

            	
              $11,022,513.33

            	
              P$104,236,241.67

            
	
              November
                2010

            	
              $11,022,513.33

            	
              P$104,236,241.67

            
	
              February
                2011

            	
              $11,022,513.33

            	
              P$104,236,241.67

            
	
              May
                2011

            	
              $11,022,513.33

            	
              P$104,236,241.67

            
	
              August
                2011

            	
              $11,022,513.33

            	
              P$104,236,241.67

            
	
              Maturity
                Date

            	
              $22,045,026.64

            	
              P$208,472,483.31

            

    

    

    Except
      to
      the extent otherwise specifically provided in the Financing Documents, all
      other
      Obligations shall be paid on the Maturity Date. Should the Dollar Commitments
      or
      the Peso Commitments not be fully drawn on the Closing Date, then the repayment
      schedule for such

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 25

          
            

          

        

        
          
          

        

      

    

    

    Tranche
      shall be revised to reduce the scheduled repayments on a pro rata basis
      by an aggregate amount equal to the undrawn amount.

     

    SECTION
      2.6 Interest. (a) Each Dollar Loan shall bear
      interest on the outstanding principal amount thereof from the Closing Date
      at a
      rate per annum equal to: (i) LIBOR (Reserve Adjusted) plus the
      Applicable Margin or (ii) the Base Rate plus the Applicable Base Rate
      Margin, as selected by the Borrower. Each Peso Loan shall bear interest on
      the
      outstanding principal amount thereof from the Closing Date at a rate per
      annum equal to the Peso Rate plus the Applicable
      Margin.

     

    (b)
      Interest on each Loan shall be paid in arrears on each applicable Payment Date.
      Accrued interest also shall be paid on the date of any prepayment of Loans
      under
Section 2.4 for the portion of the Loans so prepaid.

     

    (c)
      Notwithstanding clauses (a) and (b), while any Default
      exists: (i) the Borrower shall pay interest (after as well as before entry
      of
      judgment thereon to the extent permitted by Applicable Law) on the principal
      amount of all outstanding Loans and, to the extent permitted by Applicable
      Law,
      on any other due but unpaid Obligations, at a rate per annum equal to
      the applicable Default Rate, and (ii) all such interest shall be payable on
      demand of the Administrative Agent (with respect to interest on the Loans)
      or
      the Person to whom such payment is due.

     

    (d)
      Anything herein to the contrary notwithstanding, the Obligations shall be
      subject to the limitation that payments of interest shall not be required for
      any period for which interest is computed hereunder to the extent (but only
      to
      the extent) that contracting for or receiving such payment by such Lender would
      be contrary to any law applicable to such Lender that limits the highest rate
      of
      interest that lawfully may be contracted for, charged or received by such
      Lender, and in such event the Credit Parties shall pay such Lender interest
      at
      the highest rate permitted by Applicable Law.

     

    (e)
      With
      respect to any Interest Period for a Dollar Loan of shorter duration than three
      months pursuant to the definition of “Interest Period,” the Borrower shall
      notify the Administrative Agent, which notice must be received by the
      Administrative Agent not later than 11:00 a.m. (New York City time) at
      least three Business Days before the commencement of such Interest Period,
      of
      the desired duration of such Interest Period.

     

    (f)
      The
      Administrative Agent promptly (and, in any event, on the day such notice is
      received) shall notify each Dollar Lender of its receipt of each notice pursuant
      to clause (e).

     

    (g)
      The
      Borrower may, upon irrevocable written notice given to the Administrative Agent
      not later than 11:00 a.m. (New York City time) on the third Business Day
      before the date of the proposed conversion, convert all outstanding Dollar
      Loans
      from LIBOR Loans into Base Rate Loans or from Base Rate Loans into LIBOR Loans;
      provided that any conversion of a LIBOR Loan into a Base Rate Loan only
      shall be made on the last day of the Interest Period for such LIBOR Loan. Such
      notice shall specify: (i) the date of such conversion (which shall be a Business
      Day) and (ii) the Dollar Loans to be so converted. The Administrative Agent
      promptly shall notify each Dollar Lender of its receipt of each such
      notice.

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 26

          
            

          

        

        
          
          

        

      

    

    

    SECTION
      2.7 Fees.  The Borrower shall pay to each Agent, for
      its own account, the fees set forth in the separate fee letter(s) between the
      Borrower and such Agent pursuant to the terms thereof.

     

    SECTION
      2.8 Computation of Fees and Interest. (a) All
      computations of interest for Base Rate Loans shall be made on the basis of
      the
      actual number of days in the applicable year and actual days elapsed. All other
      computations of interest and fees shall be made on the basis of a 360-day year
      and actual days elapsed. Interest and fees shall accrue during each period
      during which such interest or fees are computed from the first day thereof
      to
      the last day thereof.

     

    (b)
      Each
      determination of an interest rate (and the related amount of interest payable
      on
      the Loans) by the Administrative Agent or the Peso Agent, as the case may be,
      shall be conclusive and binding upon the Credit Parties and the Lenders in
      the
      absence of manifest error. The Administrative Agent and the Peso Agent shall,
      at
      the written request of the Borrower or any Lender, deliver to the Borrower
      or
      such Lender, as the case may be, a written statement showing the quotations
      used
      by the Administrative Agent or the Peso Agent, as the case may be, in
      determining any interest rate and the resulting interest rate.

     

    SECTION
      2.9 Payments by Credit Parties. (a) All payments
      to be made by any Credit Party under the Financing Documents shall be made
      without set-off, defense, recoupment or counterclaim or other reduction. Except
      as otherwise expressly provided herein, all payments by (or on behalf of) any
      Credit Party under the Financing Documents shall be made to the Administrative
      Agent (in the case of Dollars) or to the Peso Agent (in the case of Pesos),
      in
      each case for the account of the Lenders (or other applicable recipient) at
      the
      applicable Payment Office, and shall be made in Dollars or Pesos (as
      applicable), and in immediately available funds, no later than 12:00 noon (New
      York City time) on the specified payment date. The Administrative Agent or
      the
      Peso Agent, as the case may be, promptly (and, in any event, on the date
      received) shall distribute to each Lender (or other applicable recipient) its
      Pro Rata Share (or other applicable share as expressly provided in the Financing
      Documents) of such payment in like funds as received. Any payment received
      by
      the Administrative Agent or the Peso Agent later than 12:00 noon (New York
      City
      time) on a payment date shall be deemed to have been received on the following
      Business Day, and any applicable interest or fee shall continue to accrue;
      provided that such shall not be considered to be a Default and no
      Default Rate shall be applicable as a result thereof. The Peso Agent (unless
      it
      is the same institution as the Administrative Agent) shall provide the
      Administrative Agent written notice of each payment received by the Peso Agent
      from (or on behalf of) the Credit Parties.

     

    (b)
      Whenever any payment is due on a day other than a Business Day, such payment
      shall be made on the preceding Business Day, and such reduction of time shall
      in
      such event be included in the computation of interest or fees, as the case
      may
      be.

     

    (c)
      Unless the Administrative Agent or the Peso Agent, as the case may be, receives
      notice from the Borrower before the date on which any payment is due to the
      Lenders that the Borrower (or the Guarantors on its behalf) shall not make
      such
      payment in full as and when required, such Agent may assume that the Credit
      Parties have made such payment in full to such Agent on such date in immediately
      available funds and such Agent may (but shall not be so required), in reliance
      upon such assumption, distribute to each Lender on such due 

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 27

          
            

          

        

        
          
          

        

      

    

    

    date
      an
      amount equal to the amount then due such Lender. If and to the extent the Credit
      Parties have not made such payment in full to such Agent, then each Lender
      shall
      repay to such Agent on demand such amount so distributed to such Lender by
      such
      Agent, together: (i) with respect to the Dollar Loans, with interest thereon
      at
      the Federal Funds Rate, and (ii) with respect to the Peso Loans, with interest
      thereon at the customary rate charged by the Peso Agent for Peso overdrafts,
      for
      each day from the date such amount is distributed to such Lender to the date
      repaid to such Agent. The giving of notice by the Borrower to any Agent that
      the
      Borrower shall not make (or cause the Guarantors to make) any payment in full
      as
      and when required shall not be construed in any manner whatsoever as: (x) a
      consent by the Financing Parties to such failure to pay or (y) a waiver to
      any
      of the rights that the Financing Parties may have.

     

    (d)
      Payments received by any Agent from (or on behalf of) the Borrower in respect
      of
      Loans shall be applied as follows: first, to any fees (on a pro
      rata basis) due pursuant to Section 2.7; second, to
      any interest (including, if applicable, at the Default Rate) due and payable
      pursuant to Section 2.6 (including, pursuant to
Section 2.6(b), on any amount of the Loans that is prepaid), such
      interest to be paid pro rata to each Lender under the applicable
      Tranche; third, to principal due and payable pursuant to
Sections 2.4 and 2.5, such principal to be paid pro
      rata to each Lender under the applicable Tranche; and fourth, to
      all other Obligations payable in connection with the Financing Documents in
      such
      order as shall be determined by the Required Lenders; it being
      understood that the Payment Dates for interest for the Loans may not be
      concurrent and any payment of interest with respect to a Loan shall be applied
      only to interest then due and payable on the Loans. 

     

    SECTION
      2.10 [RESERVED]

     

    SECTION
      2.11 Sharing of Payments, Etc. If, other than as
      expressly provided elsewhere herein, any Lender shall obtain on account of
      the
      Loans held by it any payment (whether voluntary, involuntary, through the
      exercise of any right of set-off or otherwise) in excess of its Pro Rata Share
      (or other share contemplated hereunder), then such Lender shall promptly: (a)
      notify the Administrative Agent of such fact and (b) purchase from the other
      Lenders such participations in the Loans made by them as shall be necessary
      to
      cause such purchasing Lender to share the excess payment pro rata with
      each of the other Lenders in accordance with such Lender’s Pro Rata Share;
provided that if all or any portion of such excess payment is
      thereafter recovered from the purchasing Lender, then such purchase shall to
      that extent be rescinded and each other Lender shall repay to the purchasing
      Lender the purchase price paid therefor, together with an amount equal to such
      paying Lender’s ratable share (according to the proportion of: (i) the amount of
      such paying Lender’s required repayment to (ii) the total amount so recovered
      from the purchasing Lender) of any interest or other amount paid or payable
      by
      the purchasing Lender in respect of the total amount so recovered; and
      provided further that if such participations would be in a Loan in a
      currency other than such Lender’s Loans, then such Lender may deliver the
      applicable portion of such amounts to the other applicable Lender(s) for
      application as a payment of such Loans and such amounts shall be considered
      as
      having been repaid to such other Lender(s) instead of such first Lender. The
      Credit Parties agree that any Lender so purchasing a participation from another
      Lender may, to the fullest extent permitted by Applicable Law, exercise all
      its
      rights to receive payment (including the right of set-off, but subject to
Section 10.9) with respect to such participation as fully as if such
      Lender were the direct creditor of the Credit Parties in the amount of such
      participation and not subject to the restrictions on Participant voting rights
      under Section 10.8(c). The Administrative Agent shall keep records (which
      shall be conclusive and binding in the absence of manifest error) of
      participations purchased under this Section and in each case shall notify the
      Lenders following any such purchases or repayments.

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 28

          
            

          

        

        
          
          

        

      

    

    

     

     

    ARTICLE
      III

    TAXES
      AND ILLEGALITY

     

    SECTION
      3.1 Taxes. (a) Any and all payments by the Credit
      Parties to the Financing Parties under the Financing Documents shall be made
      free and clear of and without deduction or withholding for any and all present
      and future Taxes, excluding: (i) in the case of each such Financing Party,
      taxes
      imposed upon or measured by its net income or net profits, and franchise or
      similar taxes and branch profits or similar taxes imposed upon it, by any
      jurisdiction as a result of any current or former connection between such
      Financing Party and such jurisdiction or any political subdivision or taxing
      authority thereof or therein (other than any such connection arising solely
      from
      such Financing Party having executed, delivered or performed its obligations
      or
      received a payment under, or having been a party to, or having enforced this
      Agreement or any other Financing Document) and (ii) taxes imposed by any
      jurisdiction outside México other than any taxes that arise as a result of any
      Credit Party causing payment to be made from or through a jurisdiction other
      than México (all such excluded Taxes are herein referred to as “Excluded
      Taxes” and all Taxes that are not Excluded Taxes are herein referred to as
“Covered Taxes”).

     

    (b)
      If
      any Credit Party shall be required by Applicable Law to deduct or withhold
      any
      Covered Taxes from or in respect of any sum payable under any Financing Document
      to any Financing Party, then:

     

    (i)
      the
      sum payable shall be increased by such additional amounts (the “Additional
      Amounts”) as necessary so that, after making all required deductions and
      withholdings of Covered Taxes, such Financing Party receives an amount equal
      to
      the sum it would have received had no such deductions or withholdings of Covered
      Taxes been made,

     

    (ii)
      such
      Credit Party shall make such deductions and withholdings, and

     

    (iii)
      such Credit Party promptly shall pay the full amount deducted or withheld to
      the
      relevant taxing authority or other authority in accordance with Applicable
      Law;

     

    provided
      that notwithstanding any contrary provisions and excluding any Person organized
      under the laws of México and any Export Credit Agency from the applicability of
      this proviso, the Credit Parties shall not be obligated to pay to any Financing
      Party any amounts described in this Section 3.1 in respect of any
      portion of Covered Taxes (including any Additional Amounts) that would not
      have
      been imposed but for the failure of such Financing Party: (A) to be registered
      with Hacienda as a Foreign Financial Institution, or (B) to be a resident (or
      to
      have the principal offices of such Financing Party be a resident, if such
      Financing Party lends through a branch or agency) for tax purposes, of a country
      with which México has entered into a treaty that is in effect for the avoidance
      of double taxation, entitled to the benefits of such treaty and to the reduced
      rate established in such treaty for the type 

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 29

          
            

          

        

        
          
          

        

      

    

    

    of
      interest provided therein, or (C) to comply with any certification,
      identification, information, declaration or other reporting requirements or
      to
      deliver to the Credit Parties information, documentation or other evidence
      concerning the nationality, residence, identity or registration with Hacienda
      of
      such Financing Party, in each case if compliance is required by a statute,
      treaty or regulation of México or any political subdivision thereof or any
      taxing authority therein or general administrative practice of a Mexican
      Governmental Authority as a precondition or requirement to the exemption from,
      or the reduction in the rate of, deduction or withholding of Taxes;
provided that any such Financing Party may cure any such failure in
      order to receive such Additional Amounts if such cure is sufficiently timely
      to
      effect or obtain the exemption from or reduction in the rate of deduction or
      withholding of Taxes.

     

    (c)
      Each Financing Party (other than a
      Person that is organized under the laws of México or an Export Credit Agency)
      represents and warrants to the Credit Parties that such Financing Party is
      registered as a Foreign Financial Institution with Hacienda and resident of
      a
      country that is a party to a treaty with México for the avoidance of double
      taxation entitled to the benefits of such treaty and to the reduced rate
      established in such treaty for the type of interest provided
      therein.

     

    (d)
      Each
      Credit Party agrees to indemnify and hold harmless each Financing Party for
      any
      Covered Taxes and Other Taxes paid by such Financing Party in connection with
      the execution, delivery and performance of this Agreement, including penalties
      and interest arising therefrom or with respect thereto, whether or not such
      Covered Taxes and Other Taxes were correctly or legally asserted. Payment under
      this indemnification shall be made within 30 days after the date on which such
      Financing Party makes written demand therefor.

     

    (e)
      Within 30 days after the date of any payment by any Credit Party of any Covered
      Taxes in connection with any payment by any Credit Party under the Financing
      Documents, such Credit Party shall furnish to the Administrative Agent (for
      distribution to the applicable Financing Party(ies)) the original or a certified
      copy of a receipt evidencing payment thereof, or other evidence of payment
      reasonably satisfactory to the Administrative Agent.

     

    (f)
      Each
      Financing Party (other than any Person organized under the laws of México or an
      Export Credit Agency) shall use reasonable efforts (consistent with legal and
      regulatory restrictions): (i) to file any certificate or document or to furnish
      any information as reasonably requested by a Credit Party pursuant to any
      applicable treaty, law or regulation or (ii) to designate a different Lending
      Office, if the making of such a filing, the furnishing of such information
      or
      the designation of such other Lending Office would avoid the need for or reduce
      the amount of any Additional Amounts payable by the Credit Parties pursuant
      to
      this Section and would not, in the sole judgment of such Financing Party, be
      illegal or otherwise disadvantageous to such Financing Party. It is understood
      and agreed that nothing in this Section shall interfere with the rights of
      any
      Financing Party to conduct its fiscal and tax affairs in such manner as it
      deems
      fit.

     

    (g)           (i)           If
      any additional amounts or indemnity payments are made by the Credit Parties
      to
      any Financing Party with respect to any Covered Taxes or Other Taxes pursuant
      to
      this Section 3.1 and such Financing Party in its reasonable discretion is
      entitled to a refund of such Covered Taxes or Other Taxes from the taxing
      jurisdiction to which the 

    

    
      
        
          
          

        

        
          Credit
            Agreement 30

          
            

          

        

        
          
          

        

      

    

    

    Covered
      Taxes or Other Taxes were paid, then such Financing Party shall, to the extent
      that it can do it so without prejudice to the retention of the amount of such
      refund, make reasonable efforts that would not materially prejudice such
      Financing Party or otherwise be detrimental to such Financing Party to apply
      for
      such refund and reimburse to the Credit Parties such amount of any refund
      received (net out-of-pocket expenses incurred).

     

    (ii)           If
      any payment is made by the Credit Parties to or for the account of any Financing
      Party after deduction for or on account of any Covered Taxes or Other Taxes,
      and
      increased payments are made by the Credit Parties pursuant to this Section
      3.1, then, if such Financing Party at its reasonable discretion determines
      that it has received or been granted a refund or credit for such Covered Taxes
      or Other Taxes, such Financing Party shall, to the extent that it can do so
      without prejudice to the retention of the amount of such refund or credit,
      reimburse to the Credit Parties such amount as such Financing Party shall
      determine in its reasonable discretion to be attributable to the relevant
      Covered Taxes, Other Taxes, or deduction, or withholding.  Nothing
      herein contained shall oblige any Financing Party to disclose its tax returns
      or
      any other information it deems confidential taking into account the other
      provisions of this Section 3.1(g).

     

    (h)
      The
      Credit Parties shall be responsible for the payment of any and all Other Taxes
      and any interest and penalties related thereto.

     

    SECTION
      3.2 Illegality. (a) If, on or after the Closing
      Date, any Lender determines that the introduction of any Applicable Law, any
      change in any Applicable Law or in the interpretation or administration of
      any
      Applicable Law, or any other reason whatsoever has made it unlawful, or that
      any
      Governmental Authority has asserted that it is unlawful, for any Lender under
      the Dollar Tranche or its applicable Lending Office to make or maintain LIBOR
      Loans, then, on written notice thereof by such Lender to the Borrower through
      the Administrative Agent, any obligation of such Lender to continue (or convert
      Base Rate Loans into) LIBOR Loans shall be suspended until such Lender notifies
      the Administrative Agent and the Borrower in writing that the circumstances
      giving rise to such determination no longer exist.

     

    (b)
      If a
      Lender under the Dollar Tranche determines that it is unlawful to maintain
      any
      outstanding LIBOR Loan, then the Borrower shall, upon its receipt of written
      notice of such fact and demand from such Lender (with a copy to the
      Administrative Agent), prepay in full any LIBOR Loan of such Lender then
      outstanding, together with interest accrued thereon, either on the last day
      of
      the Interest Period thereof or, if earlier, on the date on which such Lender
      may
      no longer lawfully continue to maintain such LIBOR Loan. If the Borrower is
      required so to prepay any LIBOR Loan, then, concurrently with such prepayment,
      the Borrower shall borrow from the affected Lender, in the amount of such
      repayment, a Base Rate Loan having the same principal amount; it being
      understood that any such repayment by the Borrower shall not constitute a
      repayment of the Loan hereunder pursuant to
Section 2.5.

     

    (c)
      If
      the obligation of any Lender under the Dollar Tranche to continue (or convert
      Base Rate Loans into) LIBOR Loans has been so terminated or suspended, then
      all
      Loans that otherwise would be continued (or converted) by such Lender as LIBOR
      Loans shall be maintained as Base Rate Loans instead.

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 31

          
            

          

        

        
          
          

        

      

    

    

    (d)
      Before giving any notice to the Administrative Agent or demand upon the Borrower
      under this Section, an affected Lender shall designate a different Lending
      Office with respect to its LIBOR Loans if such designation shall avoid the
      need
      for giving such notice or making such demand and shall not, in the sole judgment
      of such Lender, be illegal or otherwise disadvantageous to such
      Lender.

     

    SECTION
      3.3 Increased Costs and Reduction of Return. (a)
      If any Lender determines that, due to either: (i) the introduction of or any
      change in or in the interpretation of any Applicable Law or (ii) the compliance
      by such Lender with any guideline or request from any Governmental Authority
      (whether or not having the force of law), there shall be any increase in the
      cost to such Lender of agreeing to make or making, funding or maintaining any
      Loan, then the Borrower shall be liable for, and from time to time, promptly
      upon demand (with a copy of such demand to be sent to the Administrative Agent),
      shall pay to the Administrative Agent (or, in the case of a payment in Pesos,
      to
      the Peso Agent) for the account of such Lender, additional amounts as are
      sufficient to compensate such Lender for such increased costs (calculated in
      accordance with Section 3.4).  For the avoidance of doubt,
      this Section 3.3 does not apply to Taxes which are covered solely by
Section 3.1.

     

    (b)
      If
      any Lender shall determine that: (i) the introduction of any Capital Adequacy
      Regulation, (ii) any change in any Capital Adequacy Regulation, (iii) any change
      in the interpretation or administration of any Capital Adequacy Regulation
      by
      any Governmental Authority charged with the interpretation or administration
      thereof or (iv) compliance by such Lender (or its Lending Office) or any Person
      controlling such Lender with any Capital Adequacy Regulation, affects or would
      affect the amount of capital required or expected to be maintained by such
      Lender, its Lending Office or such Person and (taking into consideration such
      Lender’s, such Lending Office’s or such Person’s policies with respect to
      capital adequacy and such Lender’s or such Person’s desired return on capital)
      determines that the amount of such capital is increased as a consequence of
      its
      Commitment, Loans, credits or obligations under this Agreement, then, upon
      written demand of such Lender to the Borrower through the Administrative Agent,
      the Borrower promptly shall pay to the Administrative Agent (or, in the case
      of
      a payment in Pesos, to the Peso Agent) for the account of such Lender, from
      time
      to time as specified by the Lender, additional amounts sufficient to compensate
      such Lender for such increase.

     

    SECTION
      3.4 Funding Losses. Within fifteen days after
      demand, the Borrower shall reimburse each Lender and hold each Lender harmless
      from any loss or expense that such Lender has sustained or incurred as a
      consequence of:

     

    (a)
      the
      failure of the Borrower to make on a timely basis any payment of principal
      or
      interest of any LIBOR Loan or Peso Loan,

     

    (b)
      the
      failure of the Borrower to borrow a Loan on the Closing Date,

     

    (c)
      the
      failure of the Borrower to make any prepayment of any LIBOR Loan or Peso Loan
      in
      accordance with Section 2.4, and

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 32

          
            

          

        

        
          
          

        

      

    

    

    (d)
      the
      prepayment or other payment (including after acceleration thereof for any
      reason) of a LIBOR Loan or a Peso Loan on a day that is not the last day of
      the
      relevant Interest Period, in each case other than a prepayment required pursuant
      to Section 3.2(b),

     

    including
      any such loss or expense arising from the liquidation or reemployment of funds
      obtained by such Lender to maintain its LIBOR Loans or Peso Loans, as the case
      may be (but excluding loss of the Applicable Margin for the period after any
      such payment or failure to borrow or prepay), or from fees payable to terminate
      the deposits from which such funds were obtained. For purposes of calculating
      amounts payable by the Borrower to the Lenders under this Section and under
      Section 3.3(a), each LIBOR Loan and Peso Loan made by a Lender (and
      each related reserve, special deposit or similar requirement) conclusively
      shall
      be deemed to have been funded at LIBOR (Reserve Adjusted) or the Peso Rate
      (as
      applicable) applicable to such Loan by a matching deposit or other borrowing
      for
      a comparable amount and for a comparable period, whether or not such Loan is
      in
      fact so funded.

     

    SECTION
      3.5 Inability to Determine Rates. (a) If the
      Administrative Agent determines that for any reason adequate and reasonable
      means do not exist for determining LIBOR for any Interest Period with respect
      to
      a proposed LIBOR Loan, then the Administrative Agent promptly shall so notify
      the Borrower and each Dollar Lender. Thereafter, the obligation of the Dollar
      Lenders to make or maintain LIBOR Loans hereunder shall be suspended until
      the
      Administrative Agent revokes such notice in writing, which revocation shall
      be
      promptly given upon such adequate and reasonable means of determining LIBOR
      becoming available. If LIBOR Loans are then outstanding, then such Lenders
      shall
      continue such Loans as Base Rate Loans during each following Interest Period
      for
      such Loan until the Administrative Agent revokes such notice in
      writing.

     

    (b)
      If
      any Dollar Lender determines that LIBOR applicable to any Interest Period with
      respect to a LIBOR Loan would not adequately and fairly reflect the cost to
      such
      Lender of funding such LIBOR Loan, then such Lender promptly so shall notify
      the
      Administrative Agent and the Borrower. Thereafter, the obligation of such Lender
      (but not the other Dollar Lenders) to make or maintain LIBOR Loans hereunder
      shall be suspended until such Lender revokes such notice in writing, which
      revocation shall be promptly given as soon as such Dollar Lender determines
      that
      the applicable LIBOR would adequately and fairly reflect its cost of funding
      such LIBOR Loan. If LIBOR Loans are then outstanding, then such Dollar Lender
      shall continue such Loans as Base Rate Loans during each following Interest
      Period for such Loan until such Dollar Lender revokes such notice in
      writing.

     

    (c)
      If
Banco de México for any reason is not publishing the TIIE as
      contemplated by the definition of “Peso Rate”, whether permanently or
      temporarily, then the Peso Rate shall instead be calculated based upon the
      rate
      that Banco de México has published in substitution for such published
      rate (a “Banco de MéxicoReplacement Rate”), and the term “Peso
      Rate” shall be deemed to be amended to refer to the Banco de México Replacement
      Rate. In the event that Banco de México does not publish a Banco de
      México Replacement Rate, if a substitute rate has been agreed by
      the Borrower and each of the Peso Lenders (a “Substitute Rate”) then
      all references in this Agreement to Peso Rate shall thereafter be deemed to
      be
      amended to refer to such Substitute Rate. Notwithstanding the foregoing, the
      following provisions shall apply:

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 33

          
            

          

        

        
          
          

        

      

    

    

    (i)
      at
      any time when this Section 3.5(c) is operative, any Peso Loan that
      was made prior to the date on which Banco de México ceased to publish
      the TIIE as contemplated by the definition of “Peso Rate” shall continue to bear
      interest until the next Payment Date at the rate of interest applicable to
      such
      Peso Loan at the time when it was made,

     

    (ii)
      if
      the TIIE ceases to be published by Banco de México, and after a period
      of 30 consecutive days Banco de México has not published a Banco de
      México Replacement Rate and the Peso Lenders and the Borrower have not agreed
      upon a Substitute Rate, then: (A) the Peso Rate shall be the rate for
Certificados de la Tesorería de la Federación for
      28 days, published by Banco de México and (B) if Banco de
      México fails to publish such rate, the market rate determined jointly by
      the Peso Lenders, in their reasonable discretion, as reflecting their cost
      of
      funding in a manner similar to that which would have applied had such published
      rate been in effect, and such market rate shall be notified from time to time
      by
      the Peso Lenders to the Administrative Agent and the Borrower, and

     

    (iii)
      any
      Substitute Rate or other rate that becomes effective pursuant to this
Section 3.5(c) shall cease to be applicable if at any time (and as
      of such time as) Banco de México again publishes the TIIE as
      contemplated by the definition of “Peso Rate” or a Banco de México Replacement
      Rate.

     

    SECTION
      3.6 Certificates of the Lenders and Agents. Any
      Lender or Agent claiming reimbursement or compensation under this Article shall
      deliver to the Borrower (with a copy to the Administrative Agent and (for Peso
      Loans) the Peso Agent) a certificate setting forth in reasonable detail the
      reason for such reimbursement or compensation and the amount payable to such
      Lender or Agent hereunder, which certificate shall constitute prima
      facie evidence of the accuracy of the information so detailed.

     

    SECTION
      3.7 Substitution of Lenders. If any Lender (an
“Affected Lender”) fails to meet the status referenced
      in Section
      3.1(b) or is entitled to additional amounts or indemnity payments under
Section 3.3 of this Agreement, the Borrower may: (i) request the Affected
      Lender to use reasonable efforts to obtain a replacement bank or financial
      institution satisfactory to the Borrower (a “Replacement Lender”) to
      acquire and assume all or a portion of all of such Affected Lender’s Loans and
      Commitment, (ii) request one or more of the other Lenders to acquire and assume
      all or part of such Affected Lender’s Loans and Commitment; it being
      understood that no such other Lender shall be so required to acquire and
      assume any of such Loans and/or Commitments, or (iii) designate a Replacement
      Lender. Any designation of a Replacement Lender under clause (i) or
(iii) shall be subject to the prior written consent of the Administrative
      Agent (which consent shall not be unreasonably withheld or delayed and shall
      be
      deemed to have been given if no negative response shall have been received
      from
      the Administrative Agent within five Business Days of the Administrative Agent’s
      receipt of a request for such consent) and the other provisions relating to
      the
      assignment set forth in Section 10.8.

     

    SECTION
      3.8 Survival. With the exception of the
      obligations of the Credit Parties under Section 3.1 (which
      obligations shall survive indefinitely), the agreements and obligations of
      the
      Credit Parties in this Article shall survive until the irrevocable payment
      in
      full of all Obligations in Dollars and Pesos, as applicable, and the
      cancellation of all the Commitments.

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 34

          
            

          

        

        
          
          

        

      

    

    

    ARTICLE
      IV

    CONDITIONS
      PRECEDENT

     

    SECTION
      4.1 Conditions Precedent to Making Loans. The
      obligation of each Lender to make its Loans is subject to the conditions that
      on
      the Closing Date:

     

    (a)
      Transaction Documents.

     

    (i)
      Each
      of the Financing Documents shall have been duly authorized, executed and
      delivered by each party thereto. Each Financing Party shall have received an
      original of each Financing Document to which it is a party executed by all
      parties thereto.

     

    (ii)
      The
      Borrower shall have duly authorized and executed a Note for each Tranche (and,
      if the Borrower have requested both LIBOR Loans and Base Rate Loans for the
      Dollar Loans, for each such Type) for the account of each applicable Lender
      duly
      executed in guaranty (por aval) by each Guarantor. Each
      Note shall be appropriately completed with the name and address of the Lender,
      the principal amount of the Loans of the applicable Tranche made by the
      applicable Lender and the date of issuance (which shall be the Closing Date)
      inserted therein. Each Note shall be delivered by the Borrower to the
      Administrative Agent. As soon as practicable after the Closing Date, the
      Administrative Agent shall deliver the Notes received by it pursuant to the
      preceding sentence to the respective Lenders.

     

    (b)
      Financial Statements. Each Financing Party shall have received: (i)
      copies of year-end 2004 and 2005 audited consolidated Financial Statements
      prepared in accordance with GAAP of each of: (A) the Borrower (on a consolidated
      basis), and (B) the Avantel Companies (on a combined basis), (ii) copies of
      third quarter 2006 unaudited consolidated Financial Statements for the Borrower,
      to the extent available before the Closing Date, (iii) certificates dated the
      Closing Date and signed by an Authorized Officer of the Borrower stating that:
      (A) such Financial Statements are true, complete and correct in all material
      respects and (B) no Material Adverse Change has occurred, and (iv) consolidated
      Financial Statements of the Credit Parties for the 2004 and 2005 Fiscal Years
      and the nine-month period ending September 30, 2006 prepared on a pro
      forma basis as if the Acquisition had occurred.

     

    (c)
      Evidence of Authority. The Administrative Agent shall have received the
      names, specimen signatures and evidences of authority of the Persons signing
      the
      Financing Documents on behalf of the Credit Parties.

     

    (d)
      Corporate Proceedings. The Administrative Agent shall have received a
      copy of the Organizational Documents and resolutions of the board of directors
      (or other appropriate authorizing actions (including any necessary equityholder
      or similar approval) or documents) of each Credit Party authorizing the
      execution, delivery and performance by each such Credit Party of each Financing
      Document to which it is a party, in each case certified by the Secretary or
      an
      Assistant Secretary (or other

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 35

          
            

          

        

        
          
          

        

      

    

    

    appropriate
      officer) of such Credit Party as of the Closing Date; and each such certificate
      shall be in form and substance satisfactory to each Financing Party and shall
      state that the resolutions (or other authorizing actions or documents) thereby
      certified have not been amended, modified, revoked or rescinded and are in
      full
      force and effect on and as of the Closing Date.

     

    (e)
      Legal Opinions. The Lead Arranger and each of the Financing Parties shall
      have received the following legal opinions, which legal opinions shall be dated
      the Closing Date, addressed to the Lead Arranger and each Financing Party and
      in
      the forms attached hereto as Exhibit E:

     

    (i)
      the
      opinion of Cahill Gordon & Reindel LLP, special New York counsel to the
      Credit Parties,

     

    (ii)
      the
      opinion of Mayer, Brown, Rowe & Maw LLP, special New York counsel to the
      Agents and the Lenders,

     

    (iii)
      the
      opinion of D&A Morales & Asociados, S.C., special Mexican counsel to the
      Credit Parties,

     

    (iv)
      the
      opinion of internal Mexican counsel of the Borrower,

     

    (v)
      the
      opinion of internal Mexican counsel of the Avantel Companies, and

     

    (vi)
      the
      opinion of Ritch Mueller, S.C., special Mexican counsel to the Agents and the
      Lenders.

     

    (f)
      Approvals and Other Consents. The Administrative Agent shall have
      received a certificate of an Authorized Officer of the Borrower certifying
      that
      all: (i) Governmental Approvals set forth in Schedule 5.1(i) with
      respect to the Financing Documents and the Acquisition and the conduct of the
      business of the Borrower and its Subsidiaries, except for such Government
      Approvals relating to but not material to the conduct of the business of the
      Borrower and its Subsidiaries, are in full force and effect and, except as
      disclosed in such Schedule, not currently being appealed, and (ii) other
      consents, if any, necessary for the Credit Parties’ execution, delivery and
      performance of the Financing Documents and all Credit Parties’ participation in
      the Acquisition have been obtained and are in full force and
      effect.

     

    (g)  [RESERVED]

     

    (h)
      Fees and Expenses. All fees and expenses (including Attorney Costs) due
      and payable by the Credit Parties to the Lead Arranger or any Financing Party
      pursuant to a Financing Document (or otherwise pursuant to
Sections 2.7 and/or 10.4 and/or otherwise) on or before the
      Closing Date shall have been paid or the Credit Parties shall have made
      arrangements satisfactory to the applicable recipient(s) for the payment
      thereof. The Administrative Agent shall have received evidence of payment by
      the
      Credit Parties of all such accrued and unpaid fees and expenses to the extent
      then due and payable on the Closing Date, together with Attorney Costs of the
      Lead 

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 36

          
            

          

        

        
          
          

        

      

    

    

    Arranger
      and the Agents to the extent invoiced on or before the Closing Date,
plus such additional amounts of Attorney Costs as shall constitute the
      Lead Arranger’s and Agent’s reasonable estimate of Attorney Costs incurred or to
      be incurred by it through the closing proceeding (provided that such
      estimate shall not thereafter preclude final settling of accounts between the
      Credit Parties and the Lead Arranger or Agent, as applicable), including any
      such costs, fees and expenses arising under or referenced in
Sections 2.7 and/or 10.4.

     

    (i)
      Process Agent. The Administrative Agent shall have received from each
      Credit Party evidence that: (i) such Person has irrevocably appointed as its
      agent for service of process (with respect to all of the Financing Documents
      and
      all other related agreements to which they are a party) CT Corporation System,
      111 Eighth Avenue, New York, New York 10011 (the “Process Agent”), (ii)
      a notarized power of attorney has been granted to such agent by all such Persons
      organized in México and (iii) the Process Agent has accepted such appointment
      and has agreed to forward promptly to such Person all legal process addressed
      to
      such Person received by such agent.

     

    (j)
      [RESERVED]

     

    (k)
      Borrower’s Certificate. The Administrative Agent shall have received a
      certificate signed by an Authorized Officer of the Borrower, dated the Closing
      Date, to the effect that: (i) no Default or Unmatured Default exists or will
      exist immediately after the funding of the Loans and (ii) all representations
      and warranties of the Borrower and each other Credit Party contained herein
      and/or in the other Financing Documents are true and correct on and as of such
      date, except to the extent that any such representation or warranty is expressed
      to be made only as of an earlier date, in which case such representation or
      warranty was true and correct on and as of such earlier date.

     

    (l)
      Termination of Existing Credit Agreement. The Administrative Agent shall
      have received the agreement of the administrative agent and collateral agent
      under the Existing Credit Agreement that all Existing Liens shall be immediately
      released upon such administrative agent’s receipt of an amount identified in a
“pay-out” letter delivered to the Administrative Agent on or before the Closing
      Date; provided that the formalization, filing and registration of the
      Release Documentation shall be conducted as provided in Section 6.1(j);
it being understood that the Administrative Agent shall deliver (and
      the Borrower has irrevocably instructed the Administrative Agent to deliver)
      such amounts in Dollars and Pesos to (or upon the instructions of) the
      administrative agent under the Existing Credit Agreement on the Closing Date
      in
      the manner provided in Section 2.3(b).

     

    (m)
      Acquisition. The Acquisition shall be consummated simultaneously with the
      funding hereunder in accordance with Applicable Law and on the terms described
      in the agreements listed on Schedule 4.1(m) (the “Acquisition
      Documentation”); the Acquisition Documentation and all other related
      documentation shall be reasonably satisfactory to the Lead Arranger and the
      Administrative Agent; and the Administrative Agent shall be reasonably satisfied
      with any change proposed to the capitalization,

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 37

          
            

          

        

        
          
          

        

      

    

    

    structure
      and equity ownership of each of the Borrower and the Avantel Companies after
      giving effect to the Acquisition, from such capitalization, structure and equity
      ownership as heretofore described to the Administrative Agent.

     

    (n)
      Solvency. The Administrative Agent shall have received a certificate of
      the Borrower signed by the chief financial officer of the Borrower certifying
      that the Borrower and its Subsidiaries, on a Consolidated Basis after giving
      effect to the Acquisition and the other transactions contemplated hereby, are
      Solvent.

     

    (o)
      Know Your Customer.  The Administrative Agent shall have
      received, at least five Business Days prior to the Closing Date, all
      documentation and other information required by regulatory authorities under
      applicable “know your customer” and anti-money laundering rules and regulations,
      including without limitation the PATRIOT Act.

     

    (p)
      Ratings. The Borrower shall have corporate ratings from S&P of at
      least “B+” and from Moody’s of at least “B1”.

     

    (q)
      Bridge Credit Agreement. The Lead Arranger and each Financing Party shall
      have received confirmation satisfactory to it with respect to the closing and
      funding under the Bridge Credit Agreement occurring simultaneously with the
      funding hereunder.

     

    (r)
      Additional Matters. Each Financing Party shall have received such other
      documents relating to the Acquisition, this Agreement or any other Transaction
      Document or the transactions contemplated hereby or thereby as it shall have
      reasonably requested, in each case in form and substance satisfactory to
      it.

     

    (s)
      Notice of Borrowing. The Borrower shall have delivered a Notice of
      Borrowing in accordance with Section 2.3.

     

    (t)
No
      Default; Representations and Warranties. Immediately before and after giving
      effect to such Loans: (i) no Default or Unmatured Default shall exist and (ii)
      all representations and warranties made by any Credit Party contained herein
      or
      in the other Financing Documents shall be true and correct, except to the extent
      that any such representation or warranty is expressed to be made only as of
      an
      earlier date, in which case such representation or warranty shall have been
      true
      and correct on and as of such earlier date.

     

    (u)
      Schedules. The informational schedules to this Agreement (Schedules
      4.1(l), 4.1(m), 5.1(b), 5.1(c), 5.1(f),
5.1(i), 5.1(l), 6.1(k) and 6.2(a)(vii)) shall
      be
      provided by the Borrower on or before the Closing Date, in form and substance
      satisfactory to the Administrative Agent and upon the Borrower’s delivery of
      such Schedules to the Administrative Agent, the Administrative Agent shall
      include such Schedules in this Agreement as if such Schedules had been included
      on the date hereof.

     

    The
      Notice of Borrowing submitted by the Borrower hereunder shall constitute a
      representation and warranty by the Borrower that, as of the date of such notice
      or request and as of the Closing Date, the conditions in this Section shall
      be
      satisfied on or before (in which event, they shall continue to be satisfied
      on)
      the Closing Date.

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 38

          
            

          

        

        
          
          

        

      

    

    

     

     

    SECTION
      4.2 Satisfaction of Conditions Precedent. Each
      Lender shall be deemed to have agreed to and accepted each document and opinion,
      and to have approved or accepted each other matter, delivered in connection
      with
Section 4.1 unless such Lender notifies the Administrative Agent in
      writing that it does not so agree with or accept such document, opinion or
      other
      matter before making the amount of its Loan available to the Administrative
      Agent or the Peso Agent.

     

     

    ARTICLE
      V

    REPRESENTATIONS
      AND WARRANTIES

     

    SECTION
      5.1 Representations and Warranties. Each Credit
      Party (with respect to itself and each of its Subsidiaries) makes all of the
      representations and warranties in this Article to and in favor of the Financing
      Parties as of the Closing Date, except to the extent any of such representations
      or warranties specifically relate to an earlier date (in which case they shall
      have been true and correct on and as of such earlier date); it being
      understood that the following representations and warranties are made as if
      the Existing Credit Agreement (which is to be fully repaid on the Closing Date
      from the proceeds of the Loans and otherwise terminated as provided in
Section 2.3) and any security document and other related document
      into entered in connection therewith did not exist.

     

    (a)
      Organization. Each Credit Party is a corporation or other entity duly
      organized and validly existing under the laws of its jurisdiction of
      organization. Each Credit Party is duly authorized and qualified to do business
      in each jurisdiction in which it owns or leases Property or in which the conduct
      of its business requires it so to qualify, except where the failure so to
      qualify, individually or in the aggregate, could not reasonably be expected
      to
      result in a Material Adverse Change. Each Credit Party has the requisite power
      and authority to own or lease and operate its Properties, to carry on its
      business, to borrow money and to execute, deliver and perform each Transaction
      Document to which it is or will be a party.

     

    (b)
      Authority and Consents.

     

    (i)
      The
      execution, delivery and performance by each Credit Party of each Financing
      Document to which it is or will be a party, and the transactions contemplated
      thereby, and the Acquisition: (A) have been duly authorized by all necessary
      corporate action (including any necessary equityholder or similar action),
      (B)
      will not breach, contravene, violate, conflict with or constitute a default
      under: (1) any of its Organizational Documents, (2) any Applicable Law or (3)
      any material contract, loan, agreement, indenture, mortgage, lease or other
      document or requirement to which it is a party or by which it or any of its
      Properties may be bound or affected, including all material Governmental
      Approvals and the Transaction Documents, and (C) will not result in or require
      the creation or imposition of any Lien upon or with respect to any of the
      Properties or Capital Stock of any Credit Party.

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 39

          
            

          

        

        
          
          

        

      

    

    

    (ii)
      Each
      Financing Document: (A) has been duly executed and delivered by the applicable
      Credit Parties and (B) when executed and delivered by each of the other parties
      thereto will be the legal, valid and binding obligation of each applicable
      Credit Party, enforceable against such Credit Party in accordance with its
      terms
      (including with respect to any submission to jurisdiction and the choice of
      law
      specified therein), except as enforceability may be limited by applicable
concurso mercantil, quiebra, bankruptcy, insolvency,
      reorganization, moratorium or similar laws affecting creditors’ rights with
      respect to such Credit Party.

     

    (iii)
      No
      authorization, consent or approval of, or notice to or filing with, the SCT,
      the
      COFETEL, any other Governmental Authority or any other Person has been, is
      or
      will be required to be obtained or made: (A) for the Acquisition, (B) for the
      due execution, delivery, recordation, filing or performance by any Credit Party
      of any of the Financing Documents to which it is a party or any transaction
      contemplated by the Financing Documents or (C) for the exercise by any Financing
      Party of any of its rights under any Financing Document, except for: (1) the
      authorizations, consents, approvals, notices and filings listed on
Schedule 5.1(b), all of which have been duly obtained, taken, given
      or made and are in full force and effect, and (2) any authorization, approval,
      consent, notices or filings the failure of which to obtain, individually or
      in
      the aggregate, could not reasonably be expected to result in a Material Adverse
      Change.

     

    (iv)
      This
      Agreement and each of the other Transaction Documents are in proper legal form
      under the Applicable Law of México and New York for the enforcement thereof in
      each such jurisdiction and no related filings, registrations, recordings or
      Other Taxes are required to be made or paid in connection therewith other than
      any such filings, registrations, recordings or payments the failure of which
      to
      make, individually or in the aggregate, could not reasonably be expected to
      result in a Material Adverse Change.

     

    (v)
      To
      the knowledge of each Credit Party, there is no requirement for the Lead
      Arranger or any Financing Party to be licensed or qualified with any
      Governmental Authority of México or the United States of America solely by
      reason of the execution and performance of the Financing Documents.

     

    (c)
      Financial Condition.

     

    (i)
      The
      Financial Statements for the Borrower and its Subsidiaries delivered in
      accordance with Section 4.1(b) have been prepared in accordance with
      GAAP, are complete and correct in all material respects and fairly present
      the
      financial condition of the Borrower and its Subsidiaries as at the applicable
      dates and the results of their operations for the periods ended on such dates,
      subject, in the case of interim statements, to normal year-end audit
      adjustments.

     

    (ii)
      Except for Indebtedness disclosed in the Financial Statements for the Borrower
      and its Subsidiaries delivered in accordance with Section 4.1(b) and
      Indebtedness specifically identified in Schedule 5.1(c), as of the
      Closing Date no Credit Party has any Contingent Obligation, liability for Taxes,
      long-term commitment or outstanding 

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 40

          
            

          

        

        
          
          

        

      

    

    

    Indebtedness
      of any kind, in the aggregate in excess of $1,000,000 (or its equivalent in
      any
      other currency).

     

    (iii)
      No
      event has occurred since December 31, 2005 and no condition exists that,
      individually or in the aggregate, has resulted in, or could reasonably be
      expected to result in, a Material Adverse Change (other than in respect of
      the
      Avantel Companies and their Subsidiaries).

     

    (d)
      Business of the Credit Parties. No Credit Party has conducted any
      business other than the Business.

     

    (e)
      Taxes and Reports. All Tax returns, reports and statements of each Credit
      Party required by any Applicable Law to be filed with any Governmental Authority
      have been duly and properly filed except to the extent the failure to file,
      individually or in the aggregate, could not reasonably be expected to result
      in
      a Material Adverse Change. All such returns, reports and statements are complete
      and accurate in all material respects. All Taxes due or anticipated to become
      due in respect of each Credit Party, or any of their respective Properties,
      incomes or franchises, have been duly paid by, or have been
      adequately provided for in accordance with GAAP on the books of, such Credit
      Party other than those which, individually or in the aggregate, could not
      reasonably be expected to result in a Material Adverse Change. In addition,
      except as may be permitted by Section 6.1(e) or
6.2(a)(ii)(A), no Liens have been filed or registered, and no claims are
      being asserted (or, to the Credit Parties’ knowledge, threatened), with respect
      to any such Taxes which, individually or in the aggregate, could reasonably
      be
      expected to result in a Material Adverse Change.

     

    (f)
      Ownership of Capital Stock. Except as set forth on
Schedule 5.1(f), no Credit Party owns or otherwise Controls any
      Capital Stock of, or has any other (legal or beneficial) interest in, any
      Capital Stock of any other Person, other than Capital Stock of public companies
      acquired in the ordinary course of business.

     

    (g)
      Investments. No Credit Party holds any Investment other than Investments
      permitted by Section 6.2(i).

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 41

          
            

          

        

        
          
          

        

      

    

    

    (h)
      Title to Assets; Liens. Each Credit Party has good and marketable title
      to all of the material Property purported to be owned by it, free and clear
      of
      all Liens, other than Permitted Liens, and holds such title and all of such
      Property in its own name and not in the name of any nominee or other Person.
      Each Credit Party is lawfully possessed of a valid and subsisting leasehold
      estate in and to all Property that it purports to lease, free and clear of
      all
      Liens, other than Permitted Liens, and holds such leaseholds in its own name
      and
      not in the name of any nominee or other Person (it being understood
      that Avantel Infraestructura subleases one floor of its office at Paseo de
      la
      Reforma No. 265). No Credit Party has created or is contractually bound to
      create any Lien on or with respect to any of its Properties, except for
      Permitted Liens, and no Credit Party is restricted by Applicable Law or its
      Organizational Documents from creating Liens on any of its
      Properties.

     

    (i)
      Governmental Approvals.

     

    (i)
      Schedule 5.1(i) contains a complete and accurate list of all
      Governmental Approvals necessary for the Acquisition, the conduct of the
      business of each Credit Party and the transactions effected by the Financing
      Documents (including right-of-way agreements). Each Credit Party has obtained
      all other necessary Governmental Approvals from, and has filed all required
      registrations, applications, tariffs, reports and other documents with, the
      SCT,
      the COFETEL and all other Governmental Authorities in accordance with the
      Material Concessions and all other Applicable Laws, except for such approvals
      or
      filings the failure of which to obtain or make, individually or in the
      aggregate, could not reasonably be expected to result in a Material Adverse
      Change. Each Material Concession and each such other Governmental Approval
      is
      valid and in full force and effect, is not subject to any conditions for
      effectiveness and is not subject to appeal or judicial challenge; and no event
      has occurred that, individually or in the aggregate, could reasonably be
      expected to: (A) result in the revocation, termination or adverse modification
      of the Material Concessions or the revocation, termination or material adverse
      modification of any such other Governmental Approval or (B) adversely affect
      any
      rights of any Credit Party under any Governmental Approval, and, in either
      case
      (of clause (A) and/or (B)) result in a Material Adverse Change.

     

    (ii)
      There is no proceeding pending or, to any Credit Party’s knowledge, threatened
      against the Borrower or any Subsidiary that, individually or in the aggregate,
      if determined adversely to the Borrower or such Subsidiary, could reasonably
      be
      expected to result in the rescission, termination or suspension of any
      Governmental Approval set out in Schedule 5.1(i) other than any such
      proceeding that could not reasonably be expected to result in a Material Adverse
      Change.

     

    (j)
      Condition of Systems. All of the material Properties and systems of the
      Borrower and its Subsidiaries are in good repair, working order and condition,
      ordinary wear and tear excepted, and are in material compliance with all
      Applicable Laws and all Governmental Approvals (including the Material
      Concessions) except as could not, individually or in the aggregate, reasonably
      be expected to result in a Material Adverse Change.

     

    (k)
No
      Defaults; Adverse Restrictions. No Default or Unmatured Default exists or
      will exist immediately after the funding of the Loans. No default exists under
      or with respect to any of the Credit Parties’ contractual or other obligations
      in any respect that, individually or in the aggregate, has resulted in, or
      could
      reasonably be expected to result in, a Material 

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 42

          
            

          

        

        
          
          

        

      

    

    

    Adverse
      Change.

     

    (l)
Legal
      Proceedings. Except as set forth in
Schedule 5.1(l), there is no: (i) injunction, writ, preliminary
      restraining order or any order of any nature issued by an arbitrator, court
      or
      other Governmental Authority in connection with the Acquisition or the
      transactions provided for herein or in any other Transaction Document or (ii)
      action, suit, other legal proceeding, arbitral proceeding, inquiry or
      investigation of or before any arbitrator, court or other Governmental Authority
      pending or, to any Credit Party’s knowledge, threatened, that, individually or
      in the aggregate, has resulted in, or could reasonably be expected to result
      in,
      a Material Adverse Change.  Notwithstanding anything herein to the
      contrary, the information contained in Schedule 5.1(l) is for
      informational purposes only and nothing herein shall be deemed to constitute
      an
      agreement or waiver by any of the Financing Parties to any consequences of
      the
      proceedings described therein (including any consequence that may result in
      a
      Default).

     

    (m)
      Compliance with Laws. The Borrower and each Subsidiary is in compliance
      in all material respects with the Federal Telecommunications Law, all other
      Applicable Laws, all Governmental Approvals (including the Material Concessions)
      and its Organizational Documents other than any such failure to comply that,
      individually or in the aggregate, could not reasonably be expected to result
      in
      a Material Adverse Change.

     

    (n)
      Environmental Matters. The Borrower and each Subsidiary has duly complied
      in all material respects with, and its business, operations, Property,
      leaseholds and other facilities are in all material respects in compliance
      with,
      all applicable Environmental Laws other than any such failure to comply that,
      individually or in the aggregate, could not reasonably be expected to result
      in
      a Material Adverse Change. The Borrower and each Subsidiary: (i) has received
      and will maintain all Governmental Approvals relating to, and (ii) has received
      no complaint, order, directive, claim, citation or notice by any Governmental
      Authority or any other Person alleging non-compliance with, any Environmental
      Law other than any such failure to maintain or to comply that, individually
      or
      in the aggregate, could not reasonably be expected to result in a Material
      Adverse Change.

     

    (o)
      Intellectual Property. Each Credit Party owns or has the right to use all
      patents, trademarks, permits, service marks, trade names, copyrights,
      franchises, formulas, licenses, other intellectual property rights and other
      rights with respect thereto, and has obtained assignment of all leases and
      other
      rights of whatsoever nature, necessary for the Network and the operation of
      its
      business as currently contemplated without any conflict with the rights of
      other
      Persons other than as, individually or in the aggregate, could not reasonably
      be
      expected to result in a Material Adverse Change. No product, process, method,
      substance, part or other material sold or employed or presently contemplated
      to
      be sold by or employed by any Credit Party infringes (or will infringe) upon
      any
      patent, trademark, permit, service mark, trade name, copyright, franchise,
      formula, license or other intellectual property right of any other Person other
      than as, individually or in the aggregate, could not reasonably be expected
      to
      result in a Material Adverse Change.

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 43

          
            

          

        

        
          
          

        

      

    

    

    (p)
      Solvency. Each Credit Party is Solvent and, after giving effect to the
      consummation of the transactions contemplated in the Financing Documents and
      the
      Bridge Credit Agreement, on a Consolidated Basis, will be and will continue
      to
      be Solvent.

     

    (q)
      Disclosure. All documents, reports or other information pertaining to any
      Credit Party, any Credit Party Affiliate or the Business that have been
      furnished in writing to the Lead Arranger and/or Financing Party by (or on
      behalf of) the Credit Parties (including: (i) the Information Memorandum, (ii)
      any application for the extensions of credit or guarantees provided for in
      the
      Financing Documents and (iii) the Financing Documents, including the Exhibits
      and Schedules attached thereto, but excluding any forecasts and projections),
      taken as a whole, are true and correct in all material respects and do not
      contain any material misstatement of fact or taken as a whole omit to state
      any
      fact necessary to make the statements contained therein not materially
      misleading. The projections delivered to the Administrative Agent and any other
      such written forecasts and projections were as of the time delivered based
      upon
      assumptions reasonably believed to be reasonable at the time made (it being
      understood that such projections are subject to significant uncertainties
      and contingencies, many of which are beyond the control of the Credit Parties,
      and that no assurance can be given that the projections will be
      realized).

     

    (r)
      Immunity. Each Credit Party is subject to civil and commercial law with
      respect to its Obligations, and the execution, delivery and performance of
      the
      Financing Documents by each Credit Party constitute private and commercial
      acts
      rather than public or governmental acts. No Credit Party nor any of their
      respective Properties have any immunity from suit, court jurisdiction,
      attachment prior to judgment, attachment in aid of execution of a judgment,
      set-off, execution of a judgment or from any other legal process with respect
      to
      the Obligations or any of their other respective agreements under the Financing
      Documents.

     

    (s)
      Pension Plans; Labor Matters.

     

    (i)
      No
      Credit Party nor any ERISA Affiliate has ever maintained or contributed to
      (or
      had an obligation to contribute to) any ERISA Plan. Each Non-U.S. Pension Plan,
      if any, has been maintained in substantial compliance with its terms and with
      the requirements of Applicable Law, and has been maintained, where required,
      in
      good standing with applicable Governmental Authorities. No Credit Party has
      incurred any obligation in connection with the termination of or withdrawal
      from
      any Non-U.S. Pension Plan. The present value of the accrued benefit liabilities
      (whether or not vested) under each Non-U.S. Pension Plan, if any, determined
      as
      of the end of the Credit Parties’ most recently-ended Fiscal Year on the basis
      of actuarial assumptions, each of which is reasonable, did not exceed the
      current value of the assets of such Non-U.S. Pension Plan allocable to such
      benefit liabilities.

     

    (ii)
      All
      obligations of the Borrower and its Subsidiaries for payments with respect
      to
      any mandatory and additional employee benefit plans (including to the
Instituto Mexicano del Seguro Social (Mexican Social Security
      Institute) and Instituto del Fondo Nacional para la Vivienda de los
      Trabajadores (National Worker’s Housing Fund Institute)) and accrued
      payroll tax payments for their respective employees have been timely paid and
      properly reported in the Financial Statements required to be
      delivered

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 44

          
            

          

        

        
          
          

        

      

    

    

    hereunder
      except where the failure to make such payments, individually or in the
      aggregate, has not resulted in, and could not reasonably be expected to result
      in, a Material Adverse Change or create any Lien (other than Permitted
      Liens).

     

    (iii)
      The
      Borrower and its Subsidiaries have complied in all material respects with all
      Applicable Laws with respect to employment practices, including applicable
      health and safety regulations, and there is no charge or complaint alleging
      any
      material violation of any such Applicable Law against the Borrower or any
      Subsidiary pending or, to the Credit Parties’ knowledge, threatened (including
      by or before any federal or local labor board, any tribunal or the Comisión
      Nacional del Sistema de Ahorro para el Retiro (National Savings and
      Retirement System Commission)) other than non-compliance or violation that,
      individually or in the aggregate, could not reasonably be expected to result
      in
      a Material Adverse Change.

     

    (iv)
      There is no labor strike, request for representation, slowdown or stoppage
      actually pending or, to the Credit Parties’ knowledge, threatened against or
      affecting any of the Borrower and its Subsidiaries that, individually or in
      the
      aggregate, has resulted in, or could reasonably be expected to result in, a
      Material Adverse Change.

     

    (v)
      The
      Borrower and each Subsidiary has filed all forms, reports, statements, provider
      agreements, benefit plan descriptions, payor agreements, beneficiary materials
      and other documents (including those related to employee benefit plans) required
      to be filed by it with any Governmental Authority, including state and federal
      insurance and health regulatory authorities, except where the failure to file,
      individually or in the aggregate, has not resulted in, and could not reasonably
      be expected to result in, a Material Adverse Change.

     

    (t)
      Use of Proceeds; Margin Stock. The proceeds of the Loans shall be
      utilized directly or indirectly for the refinancing of all outstanding amounts
      owed under the Existing Credit Agreement, by means of funding the purchase
      of
      assets from Avantel Infraestructura, which shall use such proceeds to refinance
      outstanding amounts owed under the Existing Credit
      Agreement.  No proceeds of any Loan shall be used to
      acquire any equity security of a class that is registered pursuant to
      Section 12 of the Securities Exchange Act of 1934. No Credit Party is
      engaged in the business of extending credit for the purpose of purchasing or
      carrying margin stock (within the meaning of Regulation U issued by the
      Board of Governors of the U.S. Federal Reserve System), and no proceeds of
      any
      Loan shall be used to purchase or carry any margin stock or to extend credit
      to
      others for the purpose of purchasing or carrying margin stock.

     

    (u)
      Investment Company Act. No Credit Party is an “investment company,” or an
“affiliated person” of, or “promoter” or “principal underwriter” for, an
“investment company,” as such terms are defined in the Investment Company Act of
      1940. Neither the making of any Loan, nor the application of the proceeds or
      repayment thereof by any Credit Party, nor the consummation of the other
      transactions contemplated hereby will violate any provisions of such Act or
      any
      rule, regulation or order of the U.S. Securities and Exchange Commission
      thereunder.

     

    (v)
      Pari Passu. The Obligations of each Credit Party are and will be direct,
      unconditional, unsecured and unsubordinated obligations, and do rank and will
      rank at least pari passu with all other present and future senior
      unsecured and unsubordinated Indebtedness (including under the Bridge Credit
      Agreement), of such Credit Party.

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 45

          
            

          

        

        
          
          

        

      

    

    

     

     

     

    ARTICLE
      VI

    COVENANTS

     

    SECTION
      6.1 Affirmative Covenants. Each Credit Party
      hereby agrees that it shall (and shall cause each of its Subsidiaries to)
      perform and comply with each of the following:

     

    (a)
      Corporate Existence. Except as may be permitted by
Section 6.2(f)(ii), each Credit Party shall (and shall cause each of
      its Subsidiaries that are Restricted Subsidiaries to) preserve and maintain
      its
      corporate existence and obtain and maintain all Governmental Approvals necessary
      for the maintenance of its corporate existence and good standing, if applicable;
      provided that no Credit Party (other than the Borrower with respect to
      existence) or any of its Subsidiaries shall be required to preserve any such
      existence or Governmental Approvals if such Credit Party shall determine that
      the preservation thereof is no longer desirable in the conduct of the business
      of such Person, and that the loss thereof, individually or in the aggregate,
      could not reasonably be expected to result in a Material Adverse
      Change.

     

    (b)
      Governmental Approvals. The Credit Parties shall (and shall cause their
      Subsidiaries) at all times maintain in full force and effect the Material
      Concessions and each Credit Party shall obtain and maintain (and cause each
      of
      its Subsidiaries to obtain and maintain) all other Governmental Approvals
      necessary for: (i) the conduct of its business (except for such Governmental
      Approvals the failure to obtain and maintain, individually or in the aggregate,
      could not reasonably be expected to result in a Material Adverse Change) and
      (ii) the authorization, execution and delivery by each Credit Party of the
      Financing Documents to which it is a party, and the due performance of all
      of
      its obligations thereunder and the validity and enforceability thereof. Each
      Credit Party shall acquire, maintain and renew all rights, contracts, powers,
      exemptions, privileges, leases, lands and franchises and obtain and maintain
      all
      registrations, filings and declarations necessary for the performance of its
      obligations under the Financing Documents and material to the conduct of its
      business.

     

    (c)
      Compliance with Laws. Each Credit Party shall (and shall cause its
      Subsidiaries to) conduct its business in compliance with all Applicable Laws,
      including all relevant Governmental Approvals and Environmental Laws, except
      where any failure to comply, individually or in the aggregate, could not
      reasonably be expected to result in a Material Adverse Change, and except that
      any Credit Party or Subsidiary may, at its expense, contest by appropriate
      proceedings conducted in good faith the validity or application of any such
      Applicable Law so long as: (i) none of the Financing Parties or any Credit
      Party
      would be subject to any criminal liability for failure to comply therewith,
      (ii)
      all proceedings to enforce such Applicable Law against the Credit Parties and,
      if applicable, the Financing Parties shall have been duly stayed and (iii)
      the
      loss of such contest is not reasonably likely to result in the sale, forfeiture
      or loss of any of the Credit Parties’ Property (including the Material
      Concessions).

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 46

          
            

          

        

        
          
          

        

      

    

    

    (d)
      Maintenance of Properties, Etc. Each Credit Party shall maintain and
      preserve all of its material Properties that are necessary to the conduct of
      its
      business in good working order and condition, ordinary wear and tear excepted,
      and, from time to time, make or cause to be made all appropriate and proper
      repairs, renewals and replacements thereto in accordance with its prior
      practices, and keep all systems and equipment in compliance with any and all
      standards or rules (including compliance with technical standards and
      construction requirements and deadlines) imposed pursuant to any Applicable
      Law
      or the terms of any Material Document (including the Material Concessions),
      except where the failure to do so, individually or in the aggregate, would
      not
      result in a Material Adverse Change.

     

    (e)
      Payment of Taxes, Etc. Each Credit Party shall (and shall cause its
      Subsidiaries to) duly pay and discharge before they become overdue: (i) all
      material Taxes levied or imposed upon its Property, earnings or business, (ii)
      all material utility and governmental charges incurred in the ownership,
      operation, maintenance, use, occupancy and upkeep of its business and (iii)
      all
      material lawful claims and obligations that, if unpaid, might result in the
      imposition of a Lien upon its Property except, in each case, where the failure
      to pay or discharge, individually or in the aggregate, could not reasonably
      be
      expected to result in a Material Adverse Change and provided that any
      Credit Party may contest in good faith any such Taxes, charges, claims or
      obligations and, in such event, may permit the Taxes, charges, claims or
      obligations to remain unpaid during any period, including appeals, when any
      Credit Party is in good faith contesting the same and so long as: (A) adequate
      reserves shall have been established with respect to any such Taxes, charges,
      claims or obligations, accrued interest thereon and potential penalties or
      other
      costs relating thereto in accordance with applicable GAAP, or other adequate
      provision for payment thereof shall have been made, (B) such contest does not
      involve any risk of the sale, forfeiture or loss of any of the Credit Parties’
Property (including the Material Concessions) and (C) enforcement of the
      contested item shall be effectively stayed.

     

    (f)
      Maintenance of Insurance.  Each Credit Party shall procure and
      maintain in full force and effect at all times insurance policies with
      financially sound, responsible and reputable insurance companies in such amounts
      and covering such risks as is prudent in the good faith judgment of the officers
      of the Borrower, except where failure to obtain and maintain such insurance,
      individually or in the aggregate, could not reasonably be expected to result
      in
      a Material Adverse Change.

     

    (g)
      Financial Statements and Other Information. The Credit Parties shall at
      their sole cost furnish to the Administrative Agent (for further delivery to
      each Lender) each of the documents provided for below at the times specified
      below (all Financial Statements to be prepared on a Consolidated Basis except
      to
      the extent specifically provided otherwise below):

     

    (i)
      Quarterly Statements. As soon as available and in any event within 45
      days after the end of each fiscal quarter (other than the last fiscal quarter
      of
      each Fiscal Year), the unaudited Financial Statements for the Borrower and
      its
      Subsidiaries prepared in accordance with GAAP.

     

    (ii)
      Annual Statements. Within 120 days after the end of each Fiscal Year,
      the audited consolidated annual Financial Statements for the Borrower and its
      Subsidiaries prepared in accordance with GAAP together with an unqualified
      opinion of the Auditors reporting thereon to the effect that such Financial
      Statements fairly present the 

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 47

          
            

          

        

        
          
          

        

      

    

    

    financial
      condition of the Borrower and its Subsidiaries in accordance with
      GAAP.

     

    (iii)
      Officer’s Certificate. Each time the Financial Statements are required
      to be delivered under clause (i) or (ii), a certificate of an
      Authorized Officer of the Borrower: (A) certifying that: (1) such officer has
      made or caused to be made a review of the transactions and financial condition
      of the Credit Parties during the relevant period, (2) the Financial Statements
      fairly present the financial condition of the Credit Parties as at the end
      of,
      and for, the relevant period in accordance with GAAP, subject to normal year-end
      audit adjustments, and (3) his/her review has not disclosed the existence of
      a
      Default or Unmatured Default at any time during the applicable fiscal period
      or,
      if any Default or Unmatured Default then exists or existed at any time during
      the applicable fiscal period, specifying the nature and period of existence
      thereof and what action the Credit Parties have taken and/or propose to take
      with respect thereto, and (B) setting out in reasonable detail the computations
      necessary to determine whether the Borrower is in compliance with
Sections 6.2(a), (b), (d), (e), (g),
(h), (i) and (o) as at the
      end of the relevant fiscal
      period.

     

    (iv)
      Communications with Governmental Authorities. Promptly (and in any
      event within ten Business Days) after receipt thereof, a copy of: (A) any notice
      from the SCT, the COFETEL or any other Governmental Authority of the imposition
      of any material fine, penalty or forfeiture (either individually or when taken
      together with other fines, penalties or forfeitures incurred), including any
      fine pursuant to Article 38 of the Federal Telecommunications Law, (B) any
      notice from the SCT or the COFETEL pursuant to Article 63 of the Federal
      Telecommunications Law and (C) any notice or request from the SCT, the COFETEL
      or any other Governmental Authority threatening any of the foregoing; and
      promptly (but in any event within 10 Business Days) after the delivery thereof,
      a copy of each material notice, report or other communication sent by a Credit
      Party to the SCT, the COFETEL or any other Governmental Authority.

     

    (v)
      Other information. Copies of all other annual or interim audit reports
      submitted to a Credit Party by the Auditors, copies of all financial reports
      and
      material notices sent by the Borrower or any other Credit Party to the lenders
      under the Bridge Credit Agreement (or any refinancing thereof) or to holders
      of
      notes issued by a Credit Party, copies of any Financial Statements and reports
      that the Borrower or any other Credit Party files with the Comisión Nacional
      Bancaria y de Valores or the SEC, when any Unrestricted Subsidiary exists,
      internally prepared reconciliations or adjustments to the financials for the
      Borrower and its Subsidiaries to show whether there is compliance with respect
      to the covenants of this Agreement relating to the Borrower and its Restricted
      Subsidiaries (excluding the Unrestricted Subsidiaries), and such other
      information and data with respect to the business, Properties, operations or
      condition of any Credit Party as either Agent may reasonably
      request.

     

    (h)
      Access to Records: Inspection. Each Credit Party shall, at all reasonable
      times (and upon at least 10 Business Days’ prior notice, unless a Default or
      Unmatured Default exists), give, or cause to be given, to any and all
      representatives of any Financing Party access during normal business hours
      to,
      and permit them to examine, copy and make extracts from, any and all records
      and
      documents in the possession or subject to the control of the Credit Parties
      relating to their respective Properties, operations and financial affairs,
      and
      to 

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 48

          
            

          

        

        
          
          

        

      

    

    

    inspect
      any of their respective facilities or Properties, and to discuss the affairs,
      finances and accounts of the Credit Parties with any of their respective
      officers or directors and with the Auditors; provided that the Credit
      Parties shall not be obligated to: (i) permit the Administrative Agent (or
      such
      other Financing Party or Financing Parties as the Administrative Agent may
      specify) to perform any such examination more than once in any calendar year
      unless a Default or Unmatured Default exists, or (ii) make available any such
      records and documents (other than enforceable agreements to which any Credit
      Party is a party) to the extent that they: (A) are subject to confidentiality
      agreements with parties that are not Affiliate(s) of the Credit Parties and
      (B)
      are of a type of communication that is generally considered confidential by
      similar Persons in the ordinary course of business. The expenses of any such
      examination shall be borne by the examining Financing Parties unless a Default
      or Unmatured Default exists, in which event such expenses shall be borne by
      the
      Borrower.

     

    (i)
      Notice of Default and Other Matters. The Credit Parties shall promptly
      (but in any event within or five Business Days upon obtaining knowledge thereof)
      provide to the Administrative Agent (for further delivery to each Lender and
      the
      Peso Agent) written notice of:

     

    (i)
      any
      Default or Unmatured Default, describing such Default or Unmatured Default
      and
      any action being taken and/or proposed to be taken with respect to such Default
      or Unmatured Default,

     

    (ii)
      any
      litigation, arbitration, claim, investigation, proceeding or controversy pending
      or, to any Credit Parties’ knowledge, threatened in writing involving or
      affecting the Credit Parties: (A) involving an amount in excess of $10,000,000
      (or its equivalent in any other currency) individually or in the aggregate,
      (B)
      seeking any injunctive, declaratory or other equitable relief that, if granted,
      could reasonably be expected to result in a Material Adverse Change, (C) that
      could give rise to a Lien on any of their respective Properties, other than
      Permitted Liens or (D) that, individually or in the aggregate, has resulted
      in,
      or (if adversely determined) could reasonably be expected to result in, a
      Material Adverse Change,

     

    (iii)
      with respect to the Material Concessions or any other material Governmental
      Approval: (A) any material citation or order relating thereto, (B) any material
      suspension, revocation, rescission, materially adverse modification or
      termination thereof, (C) any alleged material breach or violation thereof by
      the
      Credit Parties or any other Person, (D) any material proceeding (including
      any
      material development in connection with the events described in
Schedule 5.1(l)) relating thereto and (E) any refusal of any Person
      to grant, renew or extend the same,

     

    (iv)
      any
      casualty, damage or loss to the Property of the Credit Parties, whether or
      not
      insured, through fire, theft, other hazard or casualty in excess of $10,000,000
      (or its equivalent in any other currency) for any one casualty or loss or
      $10,000,000 (or its equivalent in any other currency) in the aggregate in any
      Fiscal Year,

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 49

          
            

          

        

        
          
          

        

      

    

    

    (v)
      the
      occurrence of any: (i) fire, explosion, flood, earthquake or “Act of God,” (ii)
      war, civil war, blockade or act of the public enemy or (iii) riot, strike,
      lockout or other labor dispute or industrial action, in each case that,
      individually or in the aggregate, has resulted in, or could reasonably be
      expected to result in, a Material Adverse Change,

     

    (vi)
      any
      proposed material change in the nature or scope of the business or operations
      of
      the Credit Parties taken as a whole other than any that constitutes part of
      the
      Business, and

     

    (vii)
      any
      other event or development that, individually or in the aggregate, has resulted
      in, or could reasonably be expected to result in, a Material Adverse
      Change.

     

    (j)
      Release Documentation

     

    (i)
      Within ten Business Days after the Closing Date, the Credit Parties shall
      provide evidence to the Administrative Agent of the execution by the
      administrative agent and/or the collateral agent under the Existing Credit
      Agreement of the Release Documentation whether notarized or otherwise required
      in order to effect the release of the Existing Liens (including the cancellation
      of any endorsements of any insurance policies in favor of the administrative
      agent and/or collateral agent under the Existing Credit Agreement).

     

    (ii)
      Each
      Credit Party shall make (or cause the collateral agent under the Existing Credit
      Agreement to make) all filings regarding the Release Documentation with the
      applicable registration office (including without limitation, to the extent
      applicable, the RPPC, the Telecommunications Registry (Registro de
      Telecomunicaciones) maintained by COFETEL and the Mexican Institute of
      Industrial Property (Instituto Mexicano de Propiedad Industrial) as may
      be required to release the  Existing Liens no later than January 15,
      2007 (or such later date as the Administrative Agent may approve), and provide
      evidence of registration of such release through the delivery of a no-lien
      certificate or similar certificate, issued by the relevant registration office
      within 120 days from the filing of such Release Documentation with such
      registration office.

     

    (k)
      Material Documents; Etc.  Each Credit Party shall
      (and shall cause its Subsidiaries to): (A) perform and observe in all material
      respects all of its covenants and obligations contained in each of the Material
      Documents to which it is a party and (B) except to the extent considered
      imprudent in the reasonable judgment of the applicable Credit Party or
      Subsidiary, enforce against the relevant Person each material covenant or
      obligation under any Material Document to which it is a party in accordance
      with
      its terms.

     

    (l)
      Use of Proceeds. All proceeds of the Loans shall be used as provided in
Section 5.1(t).

     

    (m)
      Insurance Proceeds. If any Credit Party receives any amount in respect of
      any proceeds of insurance in excess of $100,000 as a result of any loss or
      damage to any of the Credit Parties’ Property, then unless such Credit Party
      applies such proceeds to the payment of the costs of repairing, restoring or
      rebuilding the portion of such Property that was the subject of such loss or
      damage or otherwise invests such proceeds in the Business within six months
      after the receipt of such proceeds, then such Credit Party shall apply such
      proceeds to the payment of its Indebtedness (including Indebtedness hereunder
      and under the Bridge Credit Agreement).

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 50

          
            

          

        

        
          
          

        

      

    

    

     

     

    (n)
      Expropriation Event. If an Expropriation Event shall occur with respect
      to the Borrower’s or any Restricted Subsidiary’s Property, then the Borrower or
      such Restricted Subsidiary, as the case may be, shall: (i) promptly (but in
      any
      event within five Business Days) upon discovery or receipt of notice of any
      occurrence thereof provide written notice to the Agents, (ii) diligently pursue
      all of its rights to compensation against the relevant Governmental Authority
      in
      respect of such Expropriation Event, and (iii) not, without the written consent
      of the Required Lenders, compromise or settle any claim with or against such
      Governmental Authority.  Nothing in this paragraph shall be deemed to
      impair any rights any Financing Party may have with respect to any such
      Expropriation Event.

     

    (o)
      Pension Plans. Each Non-U.S. Pension Plan (if any) shall be maintained in
      substantial compliance with its terms and with the requirements of all
      Applicable Laws. All contributions required to be made with respect to a
      Non-U.S. Pension Plan shall be timely made. No Credit Party shall incur any
      obligation in connection with the termination of or withdrawal from any Non-U.S.
      Pension Plan. The present value of the accrued benefit liabilities (whether
      or
      not vested) under each Non-U.S. Pension Plan (if any) determined as of the
      end
      of each Fiscal Year, on the basis of reasonable actuarial assumptions, shall
      not
      exceed the current value of the assets of such Non-U.S. Pension Plan allocable
      to such benefit liabilities. The Borrower and its Subsidiaries shall comply
      with
      all Applicable Laws relating to social security.

     

    (p)
      License Marks. Each Credit Party shall preserve or renew all of its
      registered patents, trademarks, permits, service marks, trade names, copyrights,
      franchises, formulas, licenses and other intellectual property, and rights
      to
      use the foregoing, the non-preservation or non-renewal of which, individually
      or
      in the aggregate, could reasonably be expected to result in a Material Adverse
      Change.

     

    (q)
      Pari Passu. Each Credit Party shall take all actions to ensure that at
      all times the Obligations constitute unconditional general obligations ranking
      at least pari passu in all respects with all present and future other
      senior unsecured and unsubordinated obligations of such Credit
      Party.

     

    (r)
      Further Assurances. Each Credit Party shall do and perform, from time to
      time, any and all acts (and execute any and all documents) as may be necessary
      or as reasonably requested by any Financing Party in order to effect the
      purposes of the Financing Documents.

     

    (s)
      Ratings.  The Borrower shall use commercially reasonable
      efforts to maintain a corporate rating from at least two of S&P, Moody’s and
      Fitch.

     

    SECTION
      6.2 Negative Covenants. Each Credit Party hereby
      agrees that it shall (and shall cause each of its Subsidiaries to) perform
      and
      comply with each of the following:

     

    (a)
      Liens. No Credit Party shall, or shall permit any of its Subsidiaries
      that are Restricted Subsidiaries to, create, incur, assume or otherwise permit
      to exist any Lien on any of its Properties of any character (including accounts
      receivable and bank accounts), whether now owned or hereafter acquired, or
      on
      any proceeds or income therefrom, or sign any security

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 51

          
            

          

        

        
          
          

        

      

    

    

    agreement
      authorizing any secured party thereunder to file any financing statement, record
      any Lien or take any similar action, or assign for security any accounts
      receivable or any other right to receive income, except for the following (each
      a “Permitted Lien”):

     

    (i)
      any
      Liens to secure the Obligations,

     

    (ii)
      such
      of the following as to which no enforcement, collection, execution, levy or
      foreclosure proceeding shall have been commenced: (A) Liens for Taxes to the
      extent not required to be paid under Section 6.1(e), (B)
      materialmen’s, mechanics’, carriers’, workmen’s and repairmen’s Liens and other
      similar Liens arising in the ordinary course of business securing obligations
      that are not overdue for a period of more than 90 days or are being contested
      in
      good faith, (C) pledges or deposits to secure obligations under workers’
compensation laws or similar legislation, (D) easements, rights-of-way and
      other
      encumbrances on title to real property that do not render title to the real
      property encumbered thereby unmarketable or materially adversely affect the
      use
      of such real property for its present purposes, (E) the interests of parties
      other than the Borrower and the Restricted Subsidiaries under certain
      right-of-way agreements and (F) setoff rights of deposit banks with respect
      to
      amounts on deposit in accounts of the Borrower and the Restricted Subsidiaries
      permitted under the Financing Documents,

     

    (iii)
      Liens on Property subject to Capital Leases or other equipment financing
      transactions entered into by the Borrower and the Restricted Subsidiaries after
      the Closing Date or Liens on Property acquired after the Closing Date by the
      Borrower and the Restricted Subsidiaries in favor of the vendor thereof to
      secure the Borrower’s or applicable Restricted Subsidiary’s, as the case may be,
      obligation to pay the balance of the purchase price thereof; provided
      that: (A) no such Lien may extend to any Property other than the Property (and
      any improvements thereon or thereto) held subject to such Capital Lease or
      other
      equipment financing transaction or acquired for such purchase price, as the
      case
      may be, (B) the aggregate principal amount of Indebtedness in respect of Capital
      Leases or the deferred purchase price of Property or services payable more
      than
      120 days after the furnishing of such Property or services secured by such
      Liens
      shall not exceed $30,000,000 (or its equivalent in any other currency) at any
      time outstanding, (C) after giving effect to such Indebtedness, the Borrower
      and
      the Restricted Subsidiaries are still in compliance with
clause (g)(iii), and (D) any such Indebtedness shall not otherwise
      be prohibited hereby (including by clause (b)),

     

    (iv)
      Liens on Customer Premises Equipment arising from the interests of the lessees
      of such equipment (including the right to acquire the leased property at the
      end
      of the lease term and the right of possession and quiet enjoyment),

     

    (v)
      the
      replacement, extension or renewal of any Lien permitted by any clause of this
      Section 6.2(a) upon or in the same Property theretofore subject thereto
      or the replacement, extension or renewal (without increase in the amount) of
      the
      Indebtedness secured thereby,

     

    (vi)
      Liens granted by a Credit Party to another Credit Party pursuant to any joint
      venture agreements,

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 52

          
            

          

        

        
          
          

        

      

    

    

    (vii)
      the
      Existing Liens (to be released as provided herein) and Liens granted by the
      Borrower or any Restricted Subsidiary (other than the Avantel Companies and
      the
      Subsidiaries of the Avantel Companies) in effect on the Closing Date and listed
      on Schedule 6.2(a)(vii),

     

    (viii)
      good faith deposits in connection with bids, tenders, contracts (other than
      for
      the payment of Indebtedness) or leases to which the Borrower or such Restricted
      Subsidiary is a party, or deposits to secure public or statutory obligations
      of
      the Borrower or such Restricted Subsidiary or deposits of cash or United States
      government bonds to secure surety or appeal bonds to which the Borrower or
      such
      Restricted Subsidiary is a party, or deposits as security for contested taxes
      or
      import duties or for the payment of rent, in each case incurred in the ordinary
      course of business,

     

    (ix)
      Liens in favor of issuers of surety bonds or letters of credit issued pursuant
      to the request of and for the account of the Borrower or such Restricted
      Subsidiary in the ordinary course of its business; provided,
however, that such letters of credit do not constitute
      Indebtedness,

     

    (x)
      minor
      survey exceptions, minor encumbrances, easements or reservations of, or rights
      of others for, licenses, rights-of-way, sewers, electric lines, telegraph and
      telephone lines and other similar purposes, or zoning or other restrictions
      as
      to the use of real property or Liens incidental to the conduct of the business
      of the Borrower or such Restricted Subsidiary or to the ownership of its
      Properties that were not Incurred in connection with Indebtedness and that
      do
      not in the aggregate materially adversely affect the value of such Properties
      or
      materially impair their use in the operation of the business of the Borrower
      or
      such Restricted Subsidiary,

     

    (xi)
      Liens on Property or shares of Capital Stock of any Person at the time such
      other Person becomes a Subsidiary of a Credit Party; provided,
however, that the Liens may not extend to any other Property owned
      by
      the Borrower or any Restricted Subsidiary (other than Property affixed or
      appurtenant thereto),

     

    (xii)
      Liens on Property at the time such Credit Party or any of its Subsidiaries
      acquires the Property, including any acquisition by means of a merger or
      consolidation with or into such Credit Party or a Subsidiary of such Credit
      Party; provided, however, that the Liens may not extend to any
      other Property owned by any Credit Party or any of its Subsidiaries (other
      than
      Property affixed or appurtenant thereto),

     

    (xiii)
      Liens securing Indebtedness or other obligations of a Subsidiary of such Credit
      Party owing to such Credit Party or a wholly-owned Subsidiary of the Borrower
      that is also a Guarantor,

     

    (xiv)
      Liens securing Permitted Hedging Obligations so long as: (A) such Permitted
      Hedging Obligations relate to Indebtedness that is secured by a Lien on the
      same
      Property securing such Permitted Hedging Obligations or (B) such Lien is with
      respect to the posting of cash or cash equivalents as collateral so long as
      such
      collateral is

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 53

          
            

          

        

        
          
          

        

      

    

    

    not
      required under the related Hedging Agreement unless such Permitted Hedging
      Obligations exceed 10% of the notional amount of the related hedging
      transaction,

     

    (xv)
      Liens in favor of customs and revenue authorities arising as a matter of law
      to
      secure payment of customs duties in connection with the importation of
      goods,

     

    (xvi)
      licenses of patents, trademarks and other intellectual property rights granted
      by the Borrower or any Restricted Subsidiary in the ordinary course of business
      and not interfering in any material respect with the ordinary conduct of the
      business of the Borrower or any Restricted Subsidiary,

     

    (xvii)
      pledges or deposits of cash and cash equivalents securing deductibles,
      self-insurance, co-payment, co-insurance, retentions or similar obligations
      to
      providers of property, casualty or liability insurance in the ordinary course
      of
      business,

     

    (xviii)
      Liens on insurance policies and the proceeds thereof securing the financing
      of
      the premiums with respect thereto,

     

    (xix)
      licenses, leases or subleases granted to third Persons or to the Borrower or
      its
      Subsidiaries by the Borrower and/or its Subsidiaries in the ordinary course
      of
      business and not interfering in any material respect with the business of any
      Credit Party or any of its Subsidiaries,

     

    (xx)
      other Liens securing, in the aggregate, less than $20,000,000 (or its equivalent
      in another currency) of Indebtedness, and

     

    (xxi)
      any
      Lien on any Property securing other Indebtedness permitted under clause
      (b); provided that the Obligations are also secured by a Lien on
      such Property on a senior or pari passu basis with respect to such
      other Indebtedness, in a manner satisfactory to the Administrative
      Agent.

     

    (b)
      Indebtedness. No Credit Party shall, or shall permit any of its
      Subsidiaries that are Restricted Subsidiaries to, incur, assume, guarantee,
      permit to exist or otherwise become liable for any Indebtedness;
provided that Indebtedness shall be permitted if: (i) the Borrower is
      and remains in compliance with the financial covenant set forth in
clause (g)(iii) (calculated, as applicable, on a pro forma
      basis for the four fiscal quarters most recently ended for which Financial
      Statements have been prepared as though such Indebtedness had been incurred
      at
      the beginning of such period), and (ii) the Consolidated Total Indebtedness
      to
      EBITDA Ratio does not and continues not to exceed 4.0x (calculated, as
      applicable, on a pro forma basis for the four fiscal quarters most
      recently ended for which Financial Statements have been prepared as though
      such
      Indebtedness had been incurred at the beginning of such period).

     

    (c)
No
      Alteration of Agreements or Organizational Documents. No Credit Party shall,
      or shall permit any of its Subsidiaries that are Restricted Subsidiaries to,
      cancel, terminate, permit the cancellation or termination of, amend, modify
      or
      change any material terms or conditions of, or grant (or receive) any material
      consent, waiver or approval under, or waive any default or any breach of any
      material term or condition of, or take or fail to take any other action that
      would impair the value of the interest or impair the rights of any Credit Party,
      any Restricted Subsidiary,
      the Administrative Agent or any other Financing Party under: (i) any of its
      Organizational Documents, or (ii) any Financing Document.

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 54

          
            

          

        

        
          
          

        

      

    

    

     

    (d)
      Restricted Payments. No Credit Party shall, or shall permit any of its
      Subsidiaries that are Restricted Subsidiaries to, make any Restricted Payment
      at
      any time; provided that:

     

    (i)
      the
      Borrower and any Restricted Subsidiary may make Restricted Payments to the
      Borrower or another Credit Party that is a wholly-owned Subsidiary of the
      Borrower or is wholly-owned by the Credit Party who is the recipient of such
      payment,

     

    (ii)
      the
      Borrower and any Restricted Subsidiary may pay dividends on its Capital Stock
      in
      the form of shares of additional Capital Stock so long as no Change of Control
      shall result from the payment of such share dividend,

     

    (iii)
      the
      Borrower may make Restricted Payments in respect of dividends or other payments
      on Capital Stock, repurchase of Capital Stock and payments on Permitted
      Subordinated Indebtedness in any Fiscal Year not in excess of its net income
      for
      the previous fiscal year so long as no Unmatured Default or Default then exists
      or would result therefrom,

     

    (iv)
      so
      long as no Default exists, the repurchase or other acquisition of Capital Stock
      of the Borrower or any Restricted Subsidiary from employees, former employees,
      directors or former directors of the Borrower or any Restricted Subsidiary
      (or
      permitted transferees of such employees, former employees, directors or former
      directors), pursuant to the terms of the agreements (including employment
      agreements) or plans (or amendments thereto) approved by the Board of Directors
      of the Borrower under which such individuals purchase or sell, or are granted
      the option to purchase or sell, shares of such Capital Stock; provided,
however, that the aggregate amount of such repurchases and other
      acquisitions (excluding amounts representing cancellation of Indebtedness)
      shall
      not exceed $5,000,000 (or its equivalent in any other currency) in any calendar
      year,

     

    (v)
      repurchases of Capital Stock may occur upon exercise of stock options if such
      Capital Stock represents a portion of the exercise price of such
      options,

     

    (vi)
      cash
      payments may be made in lieu of the issuance of fractional shares in connection
      with the exercise of warrants, options or other securities convertible into
      or
      exchangeable for Capital Stock of the Borrower,

     

    (vii)
      Restricted Payments may be made from the proceeds, not required to be applied
      to
      pay other Indebtedness, of the issuance of new Capital Stock to a Person that
      is
      not the Borrower or a Subsidiary, and

     

    (viii)
      other Restricted Payments may be made not to exceed $20,000,000 (or its
      equivalent in any other currency) in the aggregate.

     

    (e)
      Conduct of Business with Affiliates. No Credit Party shall, or shall
      permit any of its Subsidiaries that are Restricted Subsidiaries to, conduct
      any
      business with, or enter into any business transaction involving, any Affiliate
      thereof (other than among the Borrower and/or one or more wholly-owned
      Subsidiaries of the Borrower or between a Credit Party and 

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 55

          
            

          

        

        
          
          

        

      

    

    

    another
      Credit Party that is a wholly-owned Subsidiary thereof, including pursuant
      to
clause (f)(i)) unless:

     

    (i)
      such business or transaction is: (A) in the ordinary course of
      such Credit Party’s (and such Affiliate’s) business and (B) upon fair and
      commercially reasonable terms no less favorable to such Credit Party than it
      could obtain in a comparable arm’s length transaction with a Person who is not
      an Affiliate, or

     

    (ii)
      such
      business or transaction constitutes: (A) an Investment permitted to be made
      pursuant to Section 6.2(i) or a Restricted Payment permitted to be made
      pursuant to Section 6.2(d), (B) an issuance of securities, or other
      payments, awards or grants in cash, securities or otherwise pursuant to, or
      the
      funding of, employment arrangements, stock options and stock ownership plans
      approved by the Board of Directors, (C) loans or advances to employees in the
      ordinary course of business in accordance with the past practices of the Credit
      Parties, but in any event not to exceed $2,000,000 (or its equivalent in any
      other currency) in the aggregate outstanding at any one time, (D) the payment
      of
      reasonable fees to directors of the Credit Parties who are not employees of
      the
      Credit Parties, (E) the issuance or sale of any Capital Stock (other than
      Disqualified Stock) of the Borrower, or (F) a transaction entered into in the
      ordinary course of business, consistent with past practices.

     

    (f)
      Sale of Assets; Mergers.

     

    (i)
      No
      Credit Party shall, or shall permit any of its Subsidiaries that are Restricted
      Subsidiaries to, sell, assign, transfer, convey, lease or otherwise dispose
      of
      any Property, or grant an option or any other right to purchase or otherwise
      acquire any Property, whether now owned or hereafter acquired, except that
      the
      Borrower and each Restricted Subsidiary may sell, assign, transfer, convey,
      lease or otherwise dispose of any Property: (x) in the Ordinary Course of
      Business; provided that no Material Adverse Change could reasonably be
      expected to occur as a result thereof, (y) to another Credit Party so long
      as
      such transaction is in compliance with clause (e), or (z) the net
      proceeds of which sale are applied to repay Indebtedness or are reinvested
      in
      the Borrower’s and Restricted Subsidiaries’ business within 180 days of receipt
      thereof.

     

    (ii)
      No
      Credit Party shall, or shall permit any of its Subsidiaries that are Restricted
      Subsidiaries to: (A) dissolve, liquidate or otherwise cease to do business
      (except as permitted in the proviso to Section 6.1(a)) or (B) merge into
      or consolidate with any Person or permit any Person to merge into or consolidate
      with it; provided that the Borrower or any Restricted Subsidiary may
      merge into or consolidate with the Borrower or another Restricted Subsidiary
      so
      long as such transactions are in compliance with clause (e) and any
      Restricted Subsidiary may (so long as all of the Properties thereof are
      transferred to the Borrower or another Restricted Subsidiary in accordance
      with
clause (e)) be dissolved.

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 56

          
            

          

        

        
          
          

        

      

    

    

    (g)
      Financial Covenants. In each case calculated in accordance with GAAP, the
      Credit Parties shall not permit:

     

    (i)
      the
      Net Worth to be less than 80% of the Net Worth on the Closing Date after giving
      effect to the Acquisition as of the end of any fiscal quarter,

     

    (ii)
      the
      Consolidated EBITDA to Interest Ratio to be less than 3.0x as of the end of
      any
      fiscal quarter, commencing with the fiscal quarter ending September 30,
      2006, and

     

    (iii)
      the
      Consolidated Senior Indebtedness to EBITDA Ratio to be more than 3.0x as of
      the
      end of any fiscal quarter, commencing with the fiscal quarter ending
      September 30, 2006.

     

    (h)
      Accounts Receivable. No Credit Party shall, or shall permit any of its
      Subsidiaries that are Restricted Subsidiaries to, directly or indirectly, sell
      or factor any account receivable or other payment right, including in connection
      with any securitization or similar transaction, in an aggregate amount
      outstanding at any time in excess of $25,000,000. Each of the Borrower and
      the
      Restricted Subsidiaries shall keep accurate and complete records of the accounts
      receivable and other payment rights of the Borrower or such Restricted
      Subsidiary and deliver to the Agents such information about such accounts
      receivable and other payment rights as the Administrative Agent may reasonably
      request from time to time.

     

    (i)
      Investments. No Credit Party shall, or shall permit any of its
      Subsidiaries that are Restricted Subsidiaries to, make any Investment in any
      Person except:

     

    (i)
      extensions of trade credit to customers in the ordinary course of
      business,

     

    (ii)
      Permitted Investments,

     

    (iii)
      Investments in other Credit Parties,

     

    (iv)
      extensions of trade credit in the ordinary course of business,

     

    (v)
      Contingent Obligations permitted by clause (b),

     

    (vi)
      loans and advances to employees of the Borrower and the Restricted Subsidiaries
      pursuant to the ordinary course of business (including for travel, entertainment
      and relocation expenses) in an aggregate amount not to exceed $2,000,000 (or
      its
      equivalent in any other currency) at any one time outstanding,

     

    (vii)
      the
      Acquisition,

     

    (viii)
      Investments of the Borrower and the Restricted Subsidiaries existing on the
      Closing Date and any renewal or extension thereof, provided that the
      amount of the original Investment is not increased except by the terms of such
      Investment as in effect on the Closing Date or as otherwise permitted under
      this
clause (i),

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 57

          
            

          

        

        
          
          

        

      

    

    

    (ix)
      Investments received in satisfaction or partial satisfaction of accounts
      receivable from financially troubled account debtors,

     

    (x)
      Investments in the ordinary course of business consisting of endorsements for
      collection or deposit,

     

    (xi)
      promissory notes and other non-cash consideration received in connection with
      asset sales,

     

    (xii)
      Investments of a Subsidiary acquired after the Closing Date or of a corporation
      merged into the Borrower or merged into or consolidated with a Subsidiary after
      the Closing Date to the extent that such Investments: (A) were not made in
      contemplation of or in connection with such acquisition, merger or consolidation
      and (B) were in existence on the date of such acquisition, merger or
      consolidation,

     

    (xiii)
      Permitted Acquisitions,

     

    (xiv)
      Investments in other Persons; provided that (with respect to this
clause (xiv)): (1) no Default or Unmatured Default shall exist at
      the time in which such Investment is made or would have existed if such
      Investment had been made as of the last day of the previous fiscal quarter,
      and
      (2) the aggregate amount of such Investments (calculated using the amount of
      the
      initial Investment in any such Person) shall not exceed $25,000,000 (or its
      equivalent in any other currency) plus the aggregate amount of cash
      dividends (excluding return of capital) received by the Credit Parties in
      connection with such Investments,

     

    (xv)
      Investments in Permitted Joint Ventures/Partnerships, and

     

    (xvi)
      other Investments made from the proceeds of the issuance of new Capital Stock
      not required to be applied to pay other Indebtedness.

     

    No
      Credit
      Party shall, or shall permit any of its Subsidiaries that are Restricted
      Subsidiaries to, become a partner in any general or limited partnership or,
      except with each other, otherwise enter into any partnership or joint venture
      arrangements, except for Permitted Joint Ventures/Partnerships.

     

    (j)
      Subsidiaries.

     

    (i)
      Neither the Borrower nor any Restricted Subsidiary shall establish, create
      or
      acquire any Subsidiary unless: (A) such new Subsidiary becomes a party to this
      Agreement as a Guarantor by executing a Subsidiary Joinder Agreement, or such
      new Subsidiary is designated by the Borrower in a writing delivered to the
      Administrative Agent and qualifies as an Immaterial Subsidiary or an
      Unrestricted Subsidiary under this clause (j), and (B) if applicable,
      replacement Notes are provided to each Lender in the manner required by
Section 2.2(b)(iv).

     

    (ii)
      Each
      Subsidiary that has been designated an Immaterial Subsidiary or an Unrestricted
      Subsidiary by the Borrower but at any time no longer qualifies as
      an

     

    

    
      
        
          
          

        

        
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            Agreement 58

          
            

          

        

        
          
          

        

      

    

    

    Immaterial
      Subsidiary or an Unrestricted Subsidiary or has had its designation as an
      Immaterial Subsidiary or Unrestricted Subsidiary withdrawn by the Borrower
      pursuant to this clause (j) shall become a party to this Agreement as a
      Guarantor by executing a Subsidiary Joinder Agreement with and replacement
      Notes
      shall be provided to each Lender in the manner required by
Section 2.2(b)(iv).  A Subsidiary whose designation as an
      Immaterial Subsidiary or an Unrestricted Subsidiary has been withdrawn by the
      Borrower may not subsequently be redesignated an Immaterial Subsidiary or
      Unrestricted Subsidiary.

     

    (iii)
      The
      Credit Parties shall not permit at any time (A) the portion of Consolidated
      EBITDA of all Immaterial Subsidiaries to exceed 5% of the Consolidated EBITDA
      of
      the Borrower and its Subsidiaries for the four fiscal quarters most recently
      ended at the time of determination or (B) the aggregate assets held by all
      Immaterial Subsidiaries to exceed 5% of the consolidated assets of the Borrower
      and its Subsidiaries on a Consolidated Basis.  To comply with the
      foregoing, the Borrower may from time to time, by notice to the Administrative
      Agent, withdraw the designation of Immaterial Subsidiary from a formerly
      Immaterial Subsidiary such that the requirements of the preceding sentence
      are
      met at all times and in connection therewith shall cause such Subsidiary to
      become party to this Agreement as a Guarantor by executing a Subsidiary Joinder
      Agreement and cause replacement Notes to be provided to each Lender in the
      manner required by Section 2.2(b)(iv), provided that such
      redesignation shall not cause or result in an Unmatured Default or
      Default.

     

    (iv)
      The
      Credit Parties shall not permit at any time the portion of Consolidated EBITDA
      of all Unrestricted Subsidiaries to exceed 20% of the Consolidated EBITDA of
      the
      Borrower and its Subsidiaries on a Consolidated Basis for the four fiscal
      quarters most recently ended at the time of determination.  To comply
      with the foregoing, the Borrower may from time to time, by notice to the
      Administrative Agent, withdraw the designation of Unrestricted Subsidiary from
      a
      formerly Unrestricted Subsidiary such that the requirements of the preceding
      sentence are met at all times and in connection therewith shall cause such
      Subsidiary to become party to this Agreement as a Guarantor by executing a
      Subsidiary Joinder Agreement and cause replacement Notes to be provided to
      each
      Lender in the manner required by Section 2.2(b)(iv), provided
      that such redesignation shall not cause or result in an Unmatured Default or
      Default.

     

    (k)
      Ordinary Conduct of Business. No Credit Party shall, or shall permit any
      of its Subsidiaries that are Restricted Subsidiaries to: (i) engage in any
      business other than the Business, (ii) change its Fiscal Year or its method
      of
      determining its fiscal quarters or (iii) make or permit any material change
      in
      its accounting policies or reporting practices, except as required by a change
      in applicable accounting principles; provided that in the case of any
      such change, the Credit Parties shall promptly notify the Administrative Agent
      thereof and enter into such amendments of the financial ratios, definitions
      and/or related tests contained herein as the Required Lenders may reasonably
      request as a result of such change so as to preserve the intent of such
      provisions.

     

    (l)
      Sales and Transfers of Equity Interests. No Credit Party shall, or shall
      permit any of its Subsidiaries that are Restricted Subsidiaries to: (i) issue
      or
      sell any of its Capital Stock or securities convertible into, or exercisable
      for, any of its Capital Stock or (ii) permit the transfer of its Capital Stock
      or securities convertible into, or exercisable for, any of its Capital

    

    
      
        
          
          

        

        
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            Agreement 59

          
            

          

        

        
          
          

        

      

    

     

     

     

    Stock, except:
      (A) for such issuances, sales or transfers that would not result in a Change
      of
      Control and (B) as may be permitted by clause (d).

     

    (m)
      Limitation on Restrictions on Distributions from
      Subsidiaries.  No Credit Party shall, or shall permit any of its
      Subsidiaries to, create or otherwise cause or permit to exist or become
      effective any consensual encumbrance or restriction on the ability of any
      Subsidiary to: (i) pay dividends or make any other distributions on its Capital
      Stock to any Credit Party or pay any Indebtedness owed to any Credit Party,
      (ii)
      make any loans or advances to any Credit Party or (iii) transfer any of its
      Property to any Credit Party, except:

     

    (A)           with
      respect to clauses (i), (ii) and (iii)

     

    (1)  any
      encumbrance or restriction pursuant to an agreement in effect at or entered
      into
      on the Closing Date,

     

    (2)  any
      encumbrance or restriction with respect to a Subsidiary pursuant to an agreement
      relating to any Indebtedness incurred by such Subsidiary on or prior to the
      date
      on which such Subsidiary was acquired by the Borrower (other than Indebtedness
      incurred as consideration in, or to provide all or any portion of the funds
      or
      credit support utilized to consummate, the transaction or series of related
      transactions pursuant to which such Subsidiary became a Subsidiary or was
      acquired by the Borrower) and outstanding on such date,

     

    (3)  any
      encumbrance or restriction pursuant to an agreement effecting a Permitted
      Refinancing of Indebtedness incurred pursuant to an agreement referred to in
      clause (1) or (2) or this clause (3) or contained in any
      amendment to an agreement referred to in clause (1) or (2) or this
clause (3); provided, however, that the encumbrances
      and restrictions with respect to such Subsidiary contained in any such
      refinancing agreement or amendment are no less favorable to the Lenders than
      encumbrances and restrictions with respect to such Subsidiary contained in
      such
      predecessor agreements, and

     

    (4)  any
      encumbrance or restriction with respect to a Subsidiary imposed pursuant to
      an
      agreement entered into for the sale or disposition of all or substantially
      all
      the Capital Stock or Property of such Subsidiary pending the closing of such
      sale or disposition, and

     

    (B)  with
      respect to
clause (iii) only,

     

    (1)  any
      encumbrance or restriction consisting of customary nonassignment provisions
      in
      leases governing leasehold interests to the extent such provisions restrict
      the
      transfer of the lease or the Property leased thereunder, and

     

    (2)  any
      encumbrance or restriction contained in security agreements or mortgages
      securing Indebtedness of a Subsidiary to the extent such encumbrance or
      restriction restricts the transfer of the Property subject to such security
      agreements or mortgages.

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 60

          
            

          

        

        
          
          

        

      

    

    

     

     

    (n)
      Permitted Hedging. No Credit Party shall, or shall permit any Subsidiary
      to, enter into any Hedging Agreement, except with respect to Permitting Hedging
      Obligations.

     

    (o)
      Permitted Fianzas and Letters of Credit.  No Credit Party
      shall, or shall permit any Subsidiary to, create, incur, assume or suffer to
      exist any Contingent Obligation in respect of fianzas or letters of
      credit in excess of $100,000,000 (or its equivalent in any other currency)
      at
      any one time outstanding.

     

     

    ARTICLE
      VII

    DEFAULT/REMEDIES

     

    SECTION
      7.1 Default/Remedies. The occurrence of any of the
      following events or circumstances shall constitute a “Default”
hereunder:

     

    (a)
      (i)
      any Credit Party shall have failed to pay when due any principal payable
      pursuant to any Note or any other Obligation payable pursuant to this Agreement
      or any other Financing Document, in each case when the same becomes or shall
      be
      declared due and payable (whether at stated maturity, by acceleration or
      otherwise), or (ii) any Credit Party shall have failed to pay when due any
      interest payable pursuant to any Note or any other Obligation payable pursuant
      to this Agreement or any other Financing Document, in each case when the same
      becomes or shall be declared due and payable (whether at stated maturity, by
      acceleration or otherwise), which failure (in the case of clause (ii)) shall
      have continued unremedied for at least three Business Days after the date on
      which such payment is required to be made,

     

    (b)
      other
      than with respect to payments under the Financing Documents: (i) the Borrower
      or
      any Restricted Subsidiary shall default (as principal, guarantor or other
      surety) in the payment of any principal of, interest on, or premium, guaranty
      fees or other fees payable with respect to any credit-enhancement for, any
      Indebtedness or Contingent Obligation, which Indebtedness or Contingent
      Obligation is for a principal amount of at least $10,000,000 in the aggregate
      (or its equivalent in any other currency) (“Material Obligations”), and
      such default shall have continued for more than any applicable period of grace,
      (ii) any other event shall occur or condition shall exist in respect of any
      Material Obligation that results in (or permits the applicable creditor to
      cause) the acceleration of the Borrower’s or any Restricted Subsidiary’s
      obligation to pay all or any portion of such Material Obligations or (iii)
      any
      Material Obligation shall be required to be redeemed, purchased or defeased
      (or
      similarly satisfied) before its otherwise scheduled payment date (or an offer
      to
      redeem, purchase or defease (or similarly satisfy) such Material Obligations
      shall be required to be made), in each case before the otherwise scheduled
      payment date,

     

    (c)
      any
      representation or warranty made by or on behalf of any Credit Party or any
      Credit Party Affiliate in this Agreement, any other Financing Document or
      any

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 61

          
            

          

        

        
          
          

        

      

    

    

    notice
      or
      other certificate, document, Financial Statement or other statement delivered
      pursuant hereto or thereto shall have been untrue or incorrect in any respect
      when made or deemed made,

     

    (d)
      any
      Credit Party shall have failed to observe or perform any term or covenant set
      forth in Section 6.1(a), (g),
(h),(i), (j),
(l)
      or
(p) or in Section 6.2,

     

    (e)
      except as specifically provided in clauses (a), (b) and
(d), any Credit Party shall have failed to observe or
      perform any other
      agreement, covenant or provision contained in this Agreement, any other
      Financing Document or any document delivered pursuant hereto or thereto, and
      such failure (unless not capable of remedy in the reasonable opinion of the
      Required Lenders) shall have continued unremedied for at least 30 days after
      the
      earlier of: (i) such Credit Party’s receipt of written notice of the occurrence
      thereof or (ii) the date on which such Credit Party shall (or should) have
      obtained knowledge of such failure),

     

    (f)
      any
      Governmental Approval required: (i) to enable any Credit Party lawfully to
      enter
      into and perform its obligations under the Financing Documents to which it
      is a
      party, (ii) to enable any Credit Party to operate its business, (iii) to enable
      any Financing Party to exercise any of the rights expressed to be granted to
      it
      in the Financing Documents and/or (iv) to ensure the legality, validity,
      enforceability and/or admissibility in evidence in México and/or New York of any
      of the Financing Documents shall not be obtained or shall cease to be in full
      force and effect in any respect,

     

    (g)
      (i)
      any Transaction Document at any time and for any reason terminates or otherwise
      ceases to be in full force and effect (other than any scheduled expiration
      thereof), or any Transaction Document is declared to be void, or any Person
      shall issue a notice of termination under any Material Document;
provided that the termination of any Material Document or other failure
      of any such document to remain in full force and effect (or any such issuance
      of
      a notice thereof) shall not constitute a Default unless such event, individually
      or in the aggregate, has resulted in or could reasonably be expected to result
      in a Material Adverse Change; or (ii) any Credit Party or any other Person
      repudiates, or contests the validity or enforceability of, any Transaction
      Document to which it is a party,

     

    (h)
      any
      Expropriation Event shall occur,

     

    (i)
      with
      respect to the Borrower or any Restricted Subsidiary, either: (i) it shall
      commence a voluntary case, proceeding or other action: (A) under any Applicable
      Law of any jurisdiction, domestic or foreign, relating to bankruptcy,
      insolvency, reorganization, suspension of payments, concurso mercantil
      or relief of debtors seeking to have an order for relief entered with respect
      to
      it or seeking to adjudicate it a bankrupt or insolvent or seeking
      reorganization, arrangement, adjustment, winding-up, liquidation, dissolution,
      composition or other relief with respect to it or its debts, or (B) seeking
      appointment of a receiver, trustee, liquidator, custodian, conservator,
      síndico, conciliador or other similar official of it or for any part of its
      Property, (ii) an involuntary case, proceeding or other action of a nature
      referred to in clause (i) shall be commenced against 

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 62

          
            

          

        

        
          
          

        

      

    

     

     

    it
      that
      shall: (A) result in the entry of an order for relief of any such adjudication
      or appointment or (B) not have been discharged within 60 days from the
      commencement thereof, (iii) an involuntary case, proceeding or other action
      shall be commenced against it that seeks issuance of a warrant of attachment,
      execution, distraint or similar process (excluding precautionary attachment)
      against any substantial part of its Property that shall result in the entry
      of
      an order for any such relief and shall not have been vacated, discharged, stayed
      or bonded pending appeal within 60 days from the entry thereof, (iv) there
      shall
      be commenced against it any extra-judicial liquidation proceedings under any
      Applicable Law of any jurisdiction, which proceedings could reasonably be
      expected to result in its liquidation, (v) it shall admit in writing its
      inability to pay its debts as they become due, (vi) it shall make a general
      assignment for the benefit of its creditors or (vii) it shall take any corporate
      (or similar) action in furtherance of, or indicating its consent to, approval
      of
      or acquiescence in, any of the foregoing acts,

     

    (j)
      any
      court, other Governmental Authority or arbitrator shall enter against the
      Borrower or any Restricted Subsidiary: (i) a final non-payment judgment, decree
      or order that, individually or in the aggregate, has resulted in, or could
      reasonably be expected to result in, a Material Adverse Change or (ii) a final
      judgment, decree or order for the payment of money in an amount that, when
      aggregated with the amount of all other unsatisfied final judgments, decrees
      or
      orders against the Borrower and the Restricted Subsidiaries (collectively),
      exceeds $10,000,000 (or its equivalent in any other currency), and (in case
      of
      both clause (i) and (ii)) either: (A) such judgment, decree
      or order is not stayed or discharged within 45 days after entry thereof or
      (B)
      there shall be any period of at least 45 consecutive days during which a stay
      of
      enforcement of such judgment or order shall not be in effect,

     

    (k)
      a
      Change of Control shall occur,

     

    (l)
      the
      ownership or possession of Capital Stock of any Credit Party by any Person
      shall
      contravene the Foreign Investment Law,

     

    (m)
      the
      government of México, the SCT, the COFETEL or any other Governmental Authority
      shall: (i) commence a proceeding to revoke, terminate, withdraw or fail to
      renew
      a Material Concession or any other material Governmental Approval, (ii) issue
      an
      administrative resolution to revoke, terminate, materially suspend, materially
      and adversely modify, withdraw or fail to renew a Material Concession or any
      other material Governmental Approval or (iii) issue any other rule or decree
      resulting in the revocation, the termination, any suspension that is not
      partial, temporary and non-material, any material and adverse modification
      or
      the withdrawal of a Material Concession or any other material Governmental
      Approval; provided that, without limiting the generality of the
      foregoing, the issuance by the SCT of any or several administrative notices,
      sanctions or actions pursuant to Article 38 of the Federal
      Telecommunications Law relating to any event described in paragraphs I, V,
      VI and VII thereof shall not constitute a Default under clauses (i),
(ii) or (iii) unless and until any such notice, action or sanction
      results in any of the events described in such clauses,

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 63

          
            

          

        

        
          
          

        

      

    

    

    (n)
      any
      change in or the withdrawal or modification of any Applicable Law occurs,
      including the imposition of applicable foreign exchange control regulations,
      that, individually or in the aggregate, in the reasonable opinion of the
      Required Lenders has resulted in, or could reasonably be expected to result
      in,
      a Material Adverse Change,

     

    (o)
      the
      Obligations shall cease to rank at least pari passu with the present
      and future senior unsecured and unsubordinated Indebtedness and Contingent
      Obligations of any Credit Party, or

     

    (p)
      there
      shall occur any governmental action: (i) asserting a general moratorium or
      (ii)
      changing or restricting the currency (or the conversion thereof) in which any
      Credit Party may pay its obligations.

     

    SECTION
      7.2 Acceleration. (a) If a Default specified in
Section 7.1(i) shall occur, automatically all Commitments
      shall
      immediately terminate and all Loans (with accrued interest thereon) and all
      other Obligations owing under the Financing Documents shall immediately become
      due and payable.

     

    (b)
      If
      any Default (other than a Default referred to in clause (a)) shall
      occur, then the Administrative Agent (acting at the direction of the Required
      Lenders) may by notice to the Borrower either: (i) declare the Lenders’
Commitments to be terminated, whereupon all Commitments of the Lenders shall
      immediately terminate, and/or (ii) declare any or all of the Loans, all accrued
      and unpaid interest thereon and all other Obligations owing under the Financing
      Documents to be due and payable, whereupon the same shall become immediately
      due
      and payable; it being understood that any such acceleration shall,
      unless consented by the Required Lenders of the unpaid Tranche, apply to both
      Tranches on a pro rata basis.

     

    (c)
      Except as expressly provided in this Section, presentment, demand, protest
      and
      all other notices of any kind are hereby expressly waived by each Credit Party
      with respect to the events and actions described in this Section.

     

    SECTION
      7.3 Rights Not Exclusive. The rights provided to
      the Financing Parties by the Financing Documents are cumulative and are not
      exclusive of any other rights, powers, privileges or remedies provided by law
      or
      in equity, or under any other document now existing or hereafter
      arising.

     

     

    ARTICLE
      VIII

    THE
      AGENTS

     

    SECTION
      8.1 Appointment and Authorization. Each Lender
      hereby irrevocably (subject to Section 8.9) appoints, designates and
      authorizes each Agent to take such action on its behalf under the Financing
      Documents and to exercise such powers and perform such duties as expressly
      are
      delegated to it by the Financing Documents, together with such powers as are
      reasonably incidental thereto. Notwithstanding any provision to the contrary
      contained in any Financing Document: (a) no Agent shall have any duties or
      responsibilities except those expressly set forth therein, (b) no Agent shall
      have or be deemed to have any fiduciary relationship with any other Financing
      Party, (c) no implied covenants, functions, 

    

    
      
        
          
          

        

        
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            Agreement 64

          
            

          

        

        
          
          

        

      

    

    

    responsibilities,
      duties, obligations or liabilities shall be read into any Financing Document
      or
      otherwise exist against either Agent and (d) no Agent shall be required to
      take
      any action that is contrary to any Applicable Law. Without limiting the
      generality of the foregoing sentence, the use of the term “agent” in this
      Agreement or any other Financing Document with reference to the Agents is not
      intended to connote any fiduciary or other implied (or express) obligations
      arising under agency doctrine of any Applicable Law. Instead, such term is
      used
      merely as a matter of market custom and is intended to create or reflect only
      an
      administrative relationship between independent contracting
      parties.

     

    SECTION
      8.2 Delegation of Duties. Each Agent may execute
      any of its respective duties under any Financing Document by or through agents,
      employees or attorneys-in-fact, and shall be entitled to advice of counsel
      concerning all matters pertaining to such duties. No Agent shall be responsible
      for any degree of negligence or misconduct of any agent or attorney-in-fact
      that
      such Agent selects with reasonable care.

     

    SECTION
      8.3 No Liability of Agent-Related Persons. None of
      the Agent-Related Persons shall: (a) be liable for any action taken or omitted
      to be taken by any of them under or in connection with any Financing Document
      or
      the transactions contemplated thereby (except for such Person’s own gross
      negligence, bad faith, willful misconduct or breach of such Financing Agreement)
      or (b) be responsible in any manner to any of the Financing Parties or Credit
      Parties for: (i) any recital, statement, representation or warranty made by
      any
      of the Credit Parties or Credit Party Affiliates, or any officer thereof,
      contained in any Financing Document or in any certificate, report, statement
      or
      other document referred to or provided for in, or received by any Agent-Related
      Person under or in connection with, any Financing Document, (ii) the validity,
      effectiveness, genuineness, enforceability or sufficiency of any Financing
      Document (except as to such Agent-Related Person’s execution thereof) or (iii)
      any failure of any of the Credit Parties or any other party to any Financing
      Document to perform its obligations hereunder or thereunder. No Agent-Related
      Person shall be under any obligation to any Financing Party or Credit Party
      to
      ascertain or to inquire as to the observance or performance of any of the
      agreements contained in, or conditions of, any Financing Document, or to inspect
      the Properties, books or records of any of the Credit Parties or Credit Party
      Affiliates.

     

    SECTION
      8.4 Reliance by the Agent-Related Persons. Each
      Agent-Related Person shall be entitled to rely, and shall be fully protected
      in
      relying, upon any writing, resolution, notice, consent, certificate, affidavit,
      letter, facsimile or telephone message, statement or other document or
      conversation believed by it to be genuine and correct and to have been signed,
      sent or made by the proper Person(s), and upon advice and statements of legal
      counsel (including counsel to any of the Credit Parties), independent
      accountants and other experts selected by any Agent-Related Person. Each
      Agent-Related Person shall be fully justified in failing or refusing to take
      any
      action under any Financing Document unless it shall first receive such advice
      or
      concurrence of the Required Lenders as it deems appropriate and, if it so
      requests, it shall first be indemnified to its satisfaction by the Lenders
      (or,
      with respect to the Peso Agent, the Peso Lenders) against any and all liability
      and expense that may be incurred by it by reason of taking or continuing to
      take
      any such action. Each Agent-Related Person in all cases shall be fully protected
      in acting, or in refraining from acting, under any Financing Document in
      accordance with a request or consent of the Required Lenders and such request
      and any action taken or failure to act under any Financing Document pursuant
      thereto shall be binding upon all of the Financing Parties.

     

    

    
      
        
          
          

        

        
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    SECTION
      8.5 Notice of Default. (a) No Agent-Related Person
      shall be deemed to have knowledge or notice of the occurrence of any Default
      or
      Unmatured Default (except an Agent with respect to defaults in the payment
      of
      principal, interest and fees required to be paid to such Agent for the account
      of the applicable Lenders and/or the Agents) unless such Agent-Related Person
      shall have received written notice from a Financing Party or any of the Credit
      Parties referring to this Agreement, describing such Default or Unmatured
      Default and stating that such notice is a “notice of default” or similar
      statement. Such Agent-Related Person promptly shall notify each Agent and each
      Lender of its receipt of any such notice and (in the case of an Agent) of the
      occurrence of any default in the payment of principal, interest or fees required
      to be paid to such Agent for the account of the applicable Lenders and/or the
      Agents. The Agents shall take such action with respect to such Default or
      Unmatured Default as may be requested by the Required Lenders in accordance
      with
Article VII; provided that unless and until the
      Administrative Agent has received any such request and so notified the other
      Agent and the Lenders, each Agent may (but shall not be obligated to) take
      such
      action, or refrain from taking such action, with respect to such Default or
      Unmatured Default as it shall deem advisable or in the best interest of the
      Financing Parties.

     

    (b)
      Notwithstanding clause (a), each Agent-Related Person and each
      Lender shall use its best efforts to notify each Agent upon obtaining knowledge
      of any Default or Unmatured Default.

     

    SECTION
      8.6 Credit Decision. Each Lender acknowledges that
      none of the Agent-Related Persons has made any representation or warranty to
      it,
      and that no act by any Agent-Related Person hereinafter taken, including any
      review of the affairs of the Credit Parties and the Credit Party Affiliates,
      shall be deemed to constitute any representation or warranty by any
      Agent-Related Person to any Lender or other Agent-Related Person. Each Lender
      represents to the Agents and the Lead Arranger that it has, independently and
      without reliance upon any Agent-Related Person and based upon such documents
      and
      information as it has deemed appropriate, made its own appraisal of and
      investigation into the business, prospects, operations, Property, financial
      and
      other condition and creditworthiness of the Credit Parties, and all applicable
      bank regulatory laws relating to the transactions contemplated hereby, and
      made
      its own decision to enter into the Financing Documents to which it is a party
      and to extend credit to the Borrower thereunder. Each Lender also represents
      that it shall, independently and without reliance upon any Agent-Related Person
      and based upon such documents and information as it shall deem appropriate
      at
      the time, continue to make its own credit analysis, appraisals and decisions
      in
      taking or not taking action under the Financing Documents, and to make such
      investigations as it deems necessary to inform itself as to the business,
      prospects, operations, Property, financial and other condition and
      creditworthiness of the Credit Parties. Except for notices, reports and other
      documents expressly herein or in the other Financing Documents required to
      be
      furnished to the Lenders by any Agent, no Agent-Related Person shall have any
      duty or responsibility to provide any Lender with any credit or other
      information concerning the business, prospects, operations, Property, financial
      and other condition or creditworthiness of the Credit Parties that may come
      into
      the possession of any of the Agent-Related Persons.

     

    

    
      
        
          
          

        

        
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    SECTION
      8.7 Indemnification of Agent-Related Persons.
      Whether or not the transactions contemplated hereby are consummated, each Lender
      agrees to indemnify upon demand the Agent-Related Persons (to the extent not
      reimbursed by or on behalf of the Credit Parties and without limiting the
      obligation of the Credit Parties to do so), on the basis of such Lender’s
      ratable share from and against any and all Indemnified Liabilities; provided
that no Lender shall be liable for the payment to any Agent-Related
      Person
      of any portion of the Indemnified Liabilities to the extent a court of proper
      jurisdiction has delivered a final determination that such Indemnified
      Liabilities resulted from such Agent-Related Person’s gross negligence or
      willful misconduct. Without limitation of the foregoing, each Lender shall
      reimburse each Agent-Related Person upon demand for its ratable share of any
      costs or out-of-pocket expenses (including Attorney Costs) incurred by such
      Agent-Related Person in connection with the preparation, execution, delivery,
      administration, modification, amendment or enforcement (whether through
      negotiations, legal proceedings or otherwise) of, or legal advice in respect
      of
      rights or responsibilities under, any Financing Document or any document
      contemplated by or referred to therein to the extent that such Agent-Related
      Person is not reimbursed for such expenses by or on behalf of the Credit
      Parties. A Lender’s ratable share with respect to the Agents or the Lead
      Arranger or any Agent-Related Person related to the Agents or the Lead Arranger
      shall be such Lender’s Pro Rata Share. The undertaking in this Section shall
      survive the payment of all Obligations hereunder, the cancellation of all the
      Commitments and, as to any Agent-Related Person, the resignation or replacement
      of such Agent-Related Person.

     

    SECTION
      8.8 The Agent-Related Persons in Their Individual Capacity. Each
      Agent-Related Person may make loans to, issue letters of credit for the account
      of, accept deposits from, acquire equity interests in and generally engage
      in
      any kind of banking, trust, financial advisory, underwriting or other business
      with the Credit Parties and their Affiliates as though the Agents did not act
      in
      such capacity under the Financing Documents, without notice to or consent of
      the
      Lenders. The Lenders acknowledge that, pursuant to such activities, the
      Agent-Related Persons may receive information regarding the Credit Parties
      or
      their Affiliates (including information that may be subject to confidentiality
      obligations in favor of such Person) and acknowledge that no Agent-Related
      Person shall be under any obligation to provide such information to any Lender.
      With respect to its Loans, each Lender that also acts as an Agent under the
      Financing Documents shall have the same rights and powers under the Financing
      Documents as any other Lender and may exercise the same as though it were not
      such Agent thereunder.

     

    SECTION
      8.9 Successor Agent.

     

    (a)
      Any
      Agent may, and at the request of the Required Lenders shall, resign as such
      Agent upon at least 30 days’ prior written notice to the Lenders. If such Agent
      resigns under this Agreement, then the Required Lenders shall appoint from
      among
      the Lenders a successor agent who, unless a Default then exists, shall be
      reasonably acceptable to the Borrower. If no such successor agent is appointed
      before the date on which a retiring Agent’s resignation is to become effective
      in accordance with its notice of resignation, then such Agent may appoint,
      after
      consulting with the Lenders and the Borrower, a successor agent from among
      the
      Lenders who, unless a Default then exists, shall be reasonably acceptable to
      the
      Borrower. Upon the acceptance of its appointment as successor agent hereunder:
      (i) such successor agent shall succeed to all the rights (including as to the
      same fees), powers and 

     

    

    
      
        
          
          

        

        
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    duties
      of
      such retiring Agent, (ii) the term “Administrative Agent” or “Peso Agent”, as
      the case may be, shall mean such successor agent and (iii) such retiring Agent’s
      appointment, powers and duties as such Agent shall be terminated. After any
      such
      retiring Agent’s resignation hereunder, this Article and
Sections 10.4 and 10.5 shall inure to its benefit as to any
      actions taken or omitted to be taken by it while it was such Agent under the
      Financing Documents.

     

    (b)
      Any
      Person: (i) into which an Agent may be merged or consolidated, (ii) that may
      result from any merger, conversion or consolidation to which an Agent shall
      be a
      party or (iii) that may succeed to all or substantially all of the corporate
      trust business of an Agent shall be the successor of such Agent without the
      execution or filing of any instrument or any further act on the part of any
      of
      the parties hereto.

     

     

    ARTICLE
      IX

    GUARANTY

     

    SECTION
      9.1 Guaranty. (a) For good and valuable
      consideration, the receipt and sufficiency of which are hereby acknowledged,
      each Guarantor hereby, jointly and severally, as primary obligor and not merely
      as surety, unconditionally guarantees the full and punctual payment (whether
      at
      stated maturity, upon acceleration or otherwise) of the payment Obligations
      (howsoever created, arising or evidenced, whether direct or indirect, absolute
      or contingent, now or hereafter existing, or due or to become due) under the
      Financing Documents. Upon the failure by the Borrower to pay punctually any
      of
      its Obligations, the Guarantors (jointly and severally) shall immediately pay
      the amount not so paid. The obligations of the Guarantors under this Article
      shall constitute a guaranty of payment and not merely a guaranty of
      collection.

     

    (b)
      All
      payments by any Guarantor under this Article shall be payable in the manner
      required for payments by the Borrower hereunder, including: (i) the obligation
      to make all such payments free and clear of, and without deduction for, any
      Covered Taxes (including withholding taxes) in the manner provided in
Section 3.1 and (ii) the obligation to pay interest at the Default
      Rate.

     

    SECTION
      9.2 Guaranty Unconditional. The
      obligations of the Guarantors under this Article shall be unconditional and
      absolute and, without limiting the generality of the foregoing, shall not be
      released, discharged or otherwise affected by any reason,
      including:

     

    (a)
      any
      extension, renewal, settlement, compromise, waiver or release in respect of
      any
      Obligation(s) and/or any Commitment(s) under the Financing Documents, by
      operation of law or otherwise,

     

    (b)
      any
      modification or amendment of or supplement to this Agreement or any other
      Financing Document,

     

    (c)
      any
      change in the existence, structure or ownership of the Borrower or any other
      Credit Party, or any event described in Section 7.1(i) with respect
      to any Person,

     

    

    
      
        
          
          

        

        
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            Agreement 68

          
            

          

        

        
          
          

        

      

    

    

    (d)
      the
      existence of any claim, set-off or other rights that a Guarantor may have at
      any
      time against the Borrower, any other Credit Party, any Agent, any other
      Financing Party or any other Person, whether in connection herewith or any
      unrelated transactions,

     

    (e)
      any
      invalidity, irregularity or unenforceability relating to or against the Borrower
      or any other Credit Party for any reason of any Financing Document, or any
      provision of Applicable Law purporting to prohibit the payment by the Borrower
      or any other Credit Party of any of the Obligations, or

     

    (f)
      any
      other act or omission to act or delay of any kind by the Borrower and/or any
      other Credit Party, any Agent, any other Financing Party or any other Person
      or
      any other circumstance whatsoever that might, but for the provisions of this
      paragraph, constitute a legal or equitable discharge of (or defense against)
      the
      Obligations and the Guarantors’ obligations under this Article other than prior
      payment of the Obligations.

     

    SECTION
      9.3 Discharge only upon Payment in Full; Reinstatement in
      Certain Circumstances. The Guarantors’ obligations hereunder shall
      remain in full force and effect until all of the payment Obligations shall
      have
      been paid in full and all of the Commitments shall have terminated. If at any
      time any payment made under this Agreement or any other Financing Document
      is
      rescinded or must otherwise be restored or returned upon the insolvency,
      bankruptcy or reorganization of a Credit Party or any other Person or otherwise,
      then the Guarantors’ obligations hereunder with respect to such payment shall be
      reinstated at such time as though such payment had been due but not made at
      such
      time.

     

    SECTION
      9.4 Waiver by the Guarantors. (a) Each Guarantor
      hereby irrevocably and unconditionally waives, to the fullest extent permitted
      by Applicable Law: (i) notice of acceptance of the guaranty provided in this
      Article and notice of any liability to which this guaranty may apply, (ii)
      all
      notices that may be required by Applicable Law or otherwise to preserve intact
      any rights of any Financing Party against the Borrower and/or any other Credit
      Party, including any demand, presentment, protest, proof of notice of
      non-payment, notice of any failure on the part of the Borrower and/or any other
      Credit Party to perform and comply with any covenant, agreement, term, condition
      or provision of any agreement and any other notice to any other party that
      may
      be liable in respect of the Obligations guaranteed hereby (including the
      Borrower, any other Credit Party and any other guarantor thereof from time
      to
      time) except any of the foregoing as may be expressly required hereunder, (iii)
      any right to the enforcement, assertion or exercise by any Financing Party
      of
      any right, power, privilege or remedy conferred upon such Person under the
      Financing Documents or otherwise, (iv) any requirement that any Financing Party
      exhaust any right, power, privilege or remedy, or mitigate any damages resulting
      from a default, under any Financing Document, or proceed to take any action
      against a Credit Party or any other Person under or in respect of any Financing
      Document or otherwise, or protect, secure, perfect or ensure any Lien on any
      collateral, and (v) the benefit of any statute of limitations affecting the
      Guarantors’ or any other Credit Party’s liability in respect of any of the
      payment Obligations, and each Guarantor agrees that any payment of any
      Obligation to the applicable Person and any other act that shall toll any
      statute of limitations applicable to the Obligations shall also operate to
      toll
      such statute of limitations applicable to such Guarantor’s liability under this
      Article.

     

    

    
      
        
          
          

        

        
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            Agreement 69

          
            

          

        

        
          
          

        

      

    

    

    (b)
      Each
      Guarantor hereby further waives any right to which it may be entitled under
      Articles 2836, 2846, 2848 and 2849 of the Federal Civil Code (Código
      Civil Federal) of México and similar articles contained in the Civil Codes
      of the States of México and the Federal District. Each Guarantor further
      expressly waives the benefits of order, excusión and división
      contained in Articles 2814, 2815, 2817, 2818, 2820, 2821, 2822, 2823, 2839,
      2840, 2841 and other similar articles of the Federal Civil Code of México and
      similar articles contained in the Civil Codes of the States of México and the
      Federal District.

     

    SECTION
      9.5 Subrogation. Upon a Guarantor’s
      making payment with respect to any obligation under this Article, such Guarantor
      shall be subrogated to the rights of the payee against the Borrower (or the
      other obligor) with respect to such obligation; provided that such
      Guarantor shall not be a Financing Party and shall not enforce any payment
      by
      way of subrogation, indemnity or otherwise, or exercise any other right, against
      the Borrower (or such other obligor) so long as any Obligations (other than
      on-going but not yet incurred indemnity obligations) remain unpaid and/or any
      Commitments remain outstanding.

     

    SECTION
      9.6 Stay of Acceleration. If acceleration
      of the time for payment of any Obligations is stayed due to any event described
      in Section 7.1(i), then all such amounts otherwise subject to
      acceleration under this Agreement shall nonetheless be payable by the Guarantors
      hereunder.

     

     

    ARTICLE
      X

    MISCELLANEOUS

     

    SECTION
      10.1 Amendments and Waivers. No amendment or
      waiver of any provision of any Financing Document, and no consent with respect
      to any departure by any Credit Party therefrom, shall be effective unless the
      same shall be in writing and consented to by the Required Lenders and the other
      parties thereto, and then any such waiver or consent shall be effective only
      in
      the specific instance and for the specific purpose for which given;
provided that no such amendment, waiver or consent shall do any of the
      following unless approved by the indicated Lenders in writing (it being
      understood that no approval from any Lenders other than those indicated
      below shall be required):

     

    (a)
      unless approved by each Lender, amend, modify or waive the definition of
“Required Lenders” or any provision of this Section,

     

    (b)
      unless approved by the applicable Lender, increase or extend the Commitment
      of
      such Lender,

     

    (c)
      unless approved by each Lender of the applicable Tranche, postpone or reduce
      any
      scheduled payment of principal of, or any payment of interest on, the Loans
      of
      such Tranche (other than interest that accrues at the Default Rate pursuant
      to
Section 2.6(c)) or any fees or other amounts payable in connection
      therewith,

     

    (d)
      except as provided in Article VII, unless approved by the Required
      Lenders of the amended Tranche and each Lender of the other Tranche, accelerate
      any scheduled payment of principal of any Loans or increase the Applicable
      Margin or Applicable Base Rate Margin payable with respect to a
      Tranche,

     

    

    
      
        
          
          

        

        
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            Agreement 70

          
            

          

        

        
          
          

        

      

    

    

     

     

    (e)
      unless approved by the applicable Lender, change the currency of payment of
      any
      Obligations to such Lender, or

     

    (f)
      unless approved by each Lender of a Tranche, reduce any Guarantor’s obligations
      under Article IX with respect to such Tranche and the applicable
      Lenders;

     

    and
      provided further that:

     

    (i)
      no
      amendment, waiver or consent shall, unless in writing and signed by the
      applicable Agent in addition to the applicable Lender(s), affect the rights
      or
      duties of such Agent under any Financing Document, and

     

    (ii)
      the
      fee letter described in Section 2.7, may be amended, or rights or
      privileges thereunder waived, in a writing executed solely by the parties
      thereto.

     

    No
      Credit
      Party shall directly or indirectly pay or cause to be paid any remuneration
      in
      any manner whatsoever to any Lender as consideration for or as an inducement
      to
      the entering into by such Lender of any waiver or amendment of any of the
      Financing Documents unless such remuneration is concurrently paid ratably to
      each Lender (or with respect to amendments with respect to one Tranche only,
      to
      each Lender of such Tranche) even if any such Lender is not required to or
      did
      not consent to such waiver or amendment.

     

    SECTION
      10.2 Notices.

     

    (a)
      All
      notices, requests and other communications shall be in writing (including,
      unless the context expressly otherwise provides, by facsimile or other
      electronic transmission; provided that any document transmitted by any
      Credit Party by facsimile or other electronic transmission shall be followed
      promptly by delivery of a hard copy original thereof) and couriered, faxed
      or
      delivered to the address or facsimile number specified for notices on
Schedule 10.2, or, if directed to: (A) any Credit Party or either
      Agent, to such other address as shall be designated by such Credit Party or
      such
      Agent, as the case may be, in a written notice to the other parties hereto,
      and
      (B) any other Person, at such other address as shall be designated by such
      Person in a written notice to the Borrower and the Administrative
      Agent.

     

    (b)
      All
      such notices, requests and communications shall be effective: (i) if transmitted
      by facsimile, when transmitted by facsimile machine upon confirmation of
      receipt; provided that notices pursuant to Article II or
VIII to an Agent shall not be effective until actually
      received by such
      Agent (including by electronic communication), or (ii) if delivered by courier
      (including by overnight courier), upon receipt.

     

    (c)
      Any
      agreement of the Financing Parties herein to receive certain notices by
      telephone or facsimile or other electronic transmission is solely for the
      convenience and at the request of the Credit Parties. The Financing Parties
      shall be entitled to rely upon the authority of any Person purporting to be
      a
      Person authorized by a Credit Party to give such notice and the Financing
      Parties shall not have any liability to any Credit Party or any other Person
      on
      account of any action taken or not taken by the Financing Parties in reliance
      upon such 

    

    
      
        
          
          

        

        
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            Agreement 71

          
            

          

        

        
          
          

        

      

    

    

    notice.
      The obligation of the Credit Parties to repay the Obligations shall not be
      affected in any way or to any extent by any failure by the Financing Parties
      to
      receive written confirmation of any telephonic or facsimile notice or the
      receipt by the Financing Parties of a confirmation that is at variance with
      the
      terms understood by the Financing Parties to be contained in the
      notice.

     

    (d)
      Notwithstanding the foregoing: (i) a Credit Party may, at its option, provide
      to
      the Agents all information, documents and other materials that it is obligated
      to furnish pursuant to the Financing Documents, including all notices, requests,
      financial statements, financial and other reports, certificates and other
      information materials, but excluding any such communication that: (A) relates
      to
      a request for a new, or a conversion of an existing, borrowing (including any
      election of an interest rate or interest period relating thereto), (B) relates
      to the payment of any principal or other amount due under the Financing
      Documents before the scheduled date therefor, (C) provides notice of any Default
      or Unmatured Default or (D) is required to be delivered to satisfy any condition
      precedent to the effectiveness of the Financing Documents and/or any borrowing
      thereunder (all such non-excluded communications being referred to herein
      collectively as “Communications”), by transmitting the Communications
      in an electronic/soft medium to the Administrative Agent’s e-mail address
      specified by the Administrative Agent by written notice to such Credit Party
      (with respect to Communications to the Administrative Agent) and the Peso
      Agent’s e-mail address specified by the Peso Agent by written notice to such
      Credit Party (with respect to Communications to the Peso Agent), and (ii) each
      Agent may, at its option, make the Communications or other information available
      to the Lenders by posting them on Intralinks or a substantially similar
      electronic transmission system (the “Platform”).

     

    (e)
      ANY
      PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE.” THE AGENT-RELATED PERSONS DO
      NOT WARRANT THE ACCURACY OR COMPLETENESS OF ANY NOTICES OR OTHER COMMUNICATIONS
      MADE AVAILABLE BY AN AGENT, OR THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY
      DISCLAIM LIABILITY FOR ERRORS OR OMISSIONS IN SUCH NOTICES AND COMMUNICATIONS.
      NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY
      OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD
      PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY THE
      AGENT-RELATED PERSONS IN CONNECTION WITH THE PLATFORM OR THE NOTICES OR OTHER
      COMMUNICATIONS MADE AVAILABLE THEREBY. IN NO EVENT SHALL ANY AGENT-RELATED
      PERSON HAVE ANY LIABILITY TO THE CREDIT PARTIES, THE FINANCING PARTIES OR ANY
      OTHER PERSON FOR DAMAGES OF ANY KIND, INCLUDING DIRECT OR INDIRECT, SPECIAL,
      INCIDENTAL OR CONSEQUENTIAL DAMAGES, LOSSES OR EXPENSES (WHETHER IN TORT,
      CONTRACT OR OTHERWISE), ARISING OUT OF THE CREDIT PARTIES’ OR THE AGENTS’
TRANSMISSION OF NOTICES OR OTHER COMMUNICATIONS THROUGH THE PLATFORM, EXCEPT
      TO
      THE EXTENT THE LIABILITY OF ANY AGENT-RELATED PERSON IS FOUND IN A FINAL
      NON-APPEALABLE JUDGMENT BY A COURT OF COMPETENT JURISDICTION TO HAVE RESULTED
      FROM SUCH AGENT-RELATED PERSON'S GROSS NEGLIGENCE OR WILLFUL
      MISCONDUCT.

     

    

    
      
        
          
          

        

        
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    (f)
      Each
      Agent agrees that the receipt of the Communications by it at its e-mail address
      described above shall constitute effective delivery of the Communications to
      the
      Administrative Agent for purposes of the Financing Documents. Each Lender agrees
      that notice to it (as provided in the next sentence) specifying that the
      Communications and/or other notices have been made available to it on the
      Platform shall constitute effective delivery thereof to such Lender for purposes
      of the Financing Documents. Each Lender agrees: (i) to notify the Agents in
      writing (including by electronic communication) from time to time of such
      Lender’s e-mail address to which the foregoing notice may be sent by electronic
      transmission and (ii) that the foregoing notice may be sent to such e-mail
      address.

     

    SECTION
      10.3 No Waiver; Cumulative Remedies. No failure to
      exercise and no delay in exercising, on the part of any Agent, any Lender or
      any
      other Financing Party, any right, remedy, power or privilege under (or referred
      to in) any Financing Document shall operate as a waiver thereof; nor shall
      any
      single or partial exercise of any right, remedy, power or privilege under any
      Financing Document preclude any other or further exercise thereof or the
      exercise of any other right, remedy, power or privilege.

     

    SECTION
      10.4 Costs and Expense. The Borrower shall:

     

    (a)
      whether or not the transactions contemplated hereby are consummated, pay or
      reimburse any Agent-Related Person(s), promptly upon demand by such Person,
      for
      all reasonable and reasonably documented out-of-pocket fees, costs and expenses
      (including Attorney Costs) incurred by or charged to any such Person in
      connection with the preparation, execution, delivery, negotiation and
      syndication of the Financing Documents,

     

    (b)
      pay
      or reimburse any Agent, promptly upon demand by such Agent, for all reasonable
      and reasonably documented out-of-pocket fees, costs and expenses (including
      reasonable Attorney Costs) incurred by or charged to any such Agent in
      connection with the modification, administration, waiver or amendment (in each
      case, whether or not consummated) of the Financing Documents (including in
      connection with any potential restructuring, renegotiations or workouts),
      and

     

    (c)
      pay
      or reimburse each Agent-Related Person and each Lender, promptly upon demand
      by
      any such Person, for all reasonably documented out-of-pocket fees, costs and
      expenses (including Attorney Costs) incurred by them in connection with: (i)
      the
      enforcement or preservation of any rights or remedies under any Financing
      Document and (ii) the protection or preservation of any right or claim of any
      such Person against the Credit Parties or any of their Affiliates arising out
      of
      any Financing Document.

     

    SECTION
      10.5 Borrower Indemnification.

     

    (a)
      The
      Borrower shall, whether or not the transactions herein contemplated are
      consummated, indemnify each of the Financing Parties, the Lead Arranger and
      their respective Affiliates (and each of such Person’s officers, directors,
      employees, representatives and agents) (each an “Indemnified Person”)
      from and hold each of them harmless against any and all liabilities,
      obligations, losses, damages, penalties, claims, actions, judgments and suits
      and all documented costs (including reasonable and reasonably documented
      Attorney Costs), 

     

    

    
      
        
          
          

        

        
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    expenses
      and disbursements of any kind or nature whatsoever (the “Indemnified
      Liabilities”) incurred by any of them as a result of, or arising out of, or
      in any way related to, or by reason of, any investigation, litigation or other
      proceeding (whether or not any such Indemnified Person is a party thereto)
      related to the entering into and/or performance of any Financing Document or
      the
      use of the proceeds of any Loans or the consummation of any transactions
      contemplated in any Financing Document (including the reasonable and reasonably
      documented out-of-pocket Attorney Costs incurred in connection with any such
      investigation, litigation or other proceeding or in connection with enforcing
      this Section but excluding any such Indemnified Liabilities to the extent
      resulting directly and primarily by reason of the gross negligence, bad faith,
      willful misconduct or breach of a Financing Document of the Indemnified Person
      to be indemnified (or its officers, directors, employees, representatives,
      attorneys or agents) as found in a final, non-appealable judgment by a court
      of
      competent jurisdiction. Each Indemnified Party shall: (i) upon its becoming
      aware of any event that might result in the Borrower being required to perform
      any of its indemnity obligations hereunder, use reasonable efforts to promptly
      notify the Borrower (provided that failure so to notify the Borrower
      shall not mitigate the obligations of the Borrower hereunder), (ii) upon the
      Borrower’s request, consult with the Borrower regarding any step (including any
      step that may mitigate the effect of such event) it proposes to take in respect
      of such event and (iii) (unless an Unmatured Default or Default in respect
      of
      payment then exists) obtain the Borrower’s consent before entering into any
      settlement or compromise in relation to any such claims, actions or
      suits.

     

    (b)
      To
      the extent that any undertaking in clause (a) may be unenforceable
      because it is violative of any Applicable Law or public policy, the Borrower
      shall contribute the maximum portion that it is permitted to pay and satisfy
      under Applicable Law to the payment and satisfaction of such
      undertaking.

     

    (c)
      All
      such amounts and costs payable or indemnified under this Section shall be
      included in the Obligations and shall be immediately due and payable on
      demand.

     

    (d)
      The
      Borrower’s obligations hereunder and under Sections 3.1 and
10.4 shall survive the execution and delivery of the Financing
      Documents,
      the making and repayment of the Loans and (with respect to any applicable
      Indemnified Person) its resignation and/or removal.

     

    (e)
      To
      the fullest extent permitted by Applicable Law, each Credit Party agrees that
      it
      shall not assert, and hereby waives, any claim against any Indemnified Party
      on
      any theory of liability, for special, indirect, consequential or punitive
      damages (as opposed to direct or actual damages) arising out of, in connection
      with, or as a result of, this Agreement, any other Financing Document or any
      agreement or document contemplated hereby, the transactions contemplated hereby
      or thereby, any Loan and/or the use of the proceeds thereof.

     

    SECTION
      10.6 Payments Set Aside. If any Credit Party (or
      any Person on its behalf) makes a payment to any Financing Party, or any
      Financing Party exercises its right of set-off, and such payment or the proceeds
      of such set-off or any part thereof subsequently are invalidated, declared
      to be
      fraudulent or preferential, set aside or required (including pursuant to any
      settlement entered into by such Financing Party in its discretion) to be repaid
      to such Credit Party (or such Person), a trustee, síndico, receiver or
      any other Person in connection with any insolvency proceeding or otherwise,
      then: (a) to the extent of such recovery, the obligation or part thereof
      originally intended to be satisfied shall be revived and continued in

     

    

    
      
        
          
          

        

        
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    full
      force and effect as if such payment had not been made or such set-off had not
      occurred, and (b) each Lender severally agrees to pay to each Agent from whom
      it
      received any such amounts upon demand its Pro Rata Share of any amount so
      recovered from or repaid by such Agent.

     

    SECTION
      10.7 Successors and Assigns. This Agreement shall
      be binding upon and inure to the benefit of the parties hereto and their
      respective authorized successors and assigns, except that no Credit Party may
      assign or transfer any of its rights or obligations under this Agreement or
      any
      other Financing Document without the prior written consent of the Administrative
      Agent and the Required Lenders, any attempt to do so being null and void ab
      initio.

     

    SECTION
      10.8 Assignments, Participations, etc.

     

    (a)
      Assignments. Any Lender may, with the prior written consent of the
      Administrative Agent and (except during the existence of a Default) the
      Borrower, which consent(s) shall not be unreasonably withheld or delayed, at
      any
      time assign to one or more Persons that (unless a Default exists) are Eligible
      Assignees (provided that no written consent of the Borrower or the
      Administrative Agent shall be required in connection with any assignment by
      a
      Lender to an Eligible Assignee that is a Lender or an Affiliate of any Lender
      and that the Borrower will be deemed to have consented to an assignment if
      it
      fails to respond negatively to a written request for consent within ten Business
      Days of delivery of such request and provided, further, that
      it is acknowledged that it is reasonable for the Borrower to withhold its
      consent to an assignment to a competitor of the Borrower or to an Affiliate
      of a
      competitor of the Borrower) (each an “Assignee”) all, or any portion,
      of the Loans, the Commitment and the other rights and obligations of such Lender
      hereunder, in a minimum Dollar/Peso Equivalent amount of $5,000,000 or a higher
      integral multiple of $1,000,000 (or, if less, all of such Lender’s remaining
      rights and obligations hereunder); provided that the Credit Parties and
      the Agents may continue to deal solely and directly with such Lender in
      connection with the interest so assigned to an Assignee until: (i) written
      notice of such assignment, together with payment instructions, addresses and
      related information with respect to the Assignee, shall have been given to
      the
      Borrower and the Administrative Agent by such Lender and/or its Assignee, (ii)
      such Lender and its Assignee shall have delivered to the Borrower and the
      Administrative Agent a duly executed Assignment Agreement substantially in
      the
      form of Exhibit C (an “Assignment Agreement”) together with
      the Note(s) subject to such assignment and (iii) except to the extent waived
      by
      the Administrative Agent, such Lender or its Assignee shall have paid to the
      Administrative Agent a processing fee relating to such assignment in the amount
      of $3,500. Notwithstanding the foregoing, no such assignment shall be allowed
      if
      it would require securities registration under any Applicable Law or if the
      assigner thereof (if it is assigning less than all of its Loans and Commitments)
      would, after such assignment, have less than $5,000,000 (or its Dollar/Peso
      Equivalent) in Loans and remaining Commitments.

     

    (b)
      Assignee as Lender. From and after the date that the Administrative Agent
      notifies the assignor Lender that it has received and provided its consent,
      and
      received (if such consent is applicable) the consent of the Borrower, with
      respect to an executed Assignment Agreement (and has received payment of the
      above-referenced processing fee): (i) the Assignee thereunder shall be a party
      hereto and, to the extent that rights and obligations hereunder have been
      assigned to it pursuant to such Assignment Agreement, shall have the

     

    

    
      
        
          
          

        

        
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    rights
      and obligations of a Lender under the Financing Documents, and (ii) the assignor
      Lender shall, to the extent that rights and obligations under the Financing
      Documents have been assigned by it pursuant to such Assignment Agreement, be
      considered to have relinquished its rights and be released from its obligations
      under the Financing Documents.

     

    (c)
      Participations. Any Lender may at any time sell to one or more financial
      institution(s) or other Person(s) (each a “Participant”) participating
      interests in any Loans, the Commitment of such Lender and the other interests
      of
      such Lender (the “originating Lender”) under the Financing Documents;
provided that: (i) the originating Lender’s obligations under the
      Financing Documents shall remain unchanged, (ii) the originating Lender shall
      remain solely responsible for the performance of such obligations, (iii) the
      Credit Parties and the Agents shall continue to deal solely and directly with
      the originating Lender in connection with the originating Lender’s rights and
      obligations under the Financing Documents, (iv) no Lender shall transfer or
      grant any participating interest under which the Participant has rights to
      approve any amendment to, or any consent or waiver with respect to, any
      Financing Document, except to the extent such amendment, consent or waiver
      would
      require unanimous consent of the applicable Lenders as described in
Section 10.1, and (v) if such Participant does not satisfy the
      definition of an Eligible Assignee, the Borrower shall be liable for Taxes
      and
      Other Taxes to such Participant (or to the originating Lender on behalf of
      such
      Participant) in an amount no greater than the amount that it otherwise would
      have been so liable to the originating Lender (who for purposes hereof, will
      have been assumed to be in compliance with Section 3.1(c)). In the case
      of any such participation, the Participant shall be entitled to the benefit
      (subject to the requirements and limitations of such Sections) of
Sections 3.1 (except as set forth in clause (v) above),
3.3, 3.4 and 10.5 as though it were also a Lender
      hereunder, and if amounts outstanding under the Financing Documents are due
      and
      unpaid, or shall have been declared or shall have become due and payable upon
      the occurrence of a Default, each Participant shall be deemed to have the right
      of set-off in respect of its participating interest in amounts owing under
      the
      Financing Documents to the same extent as if the amount of its participating
      interest were owing directly to it as a Lender under this Agreement (including
      such rights under Section 10.10).  So long as no Default
      exists, an originating Lender shall provide at least ten Business Days’ prior
      notice to the Borrower (or such shorter notice period as the Borrower may
      approve) of any proposed participation to a proposed Participant that is not
      already a Lender, a Participant or an Affiliate of a Lender or a
      Participant.  So long as no Default exists, such originating Lender
      shall not enter into such proposed participation if the Borrower provides to
      such originating Lender, within ten Business Days after the Borrower’s receipt
      of the notice of such proposed participation, notice of the Borrower’s objection
      to the proposed participation to such proposed Participant on the basis that
      such proposed Participant is a competitor or an Affiliate of a competitor of
      the
      Borrower.

     

    (d)
      Pledge to Federal Reserve Bank. Notwithstanding any other provision in
      this Agreement, any Lender may (without the consent of the Borrower or the
      Administrative Agent or prior notice to either) at any time create a security
      interest in, or pledge, all or any portion of its rights under and interest
      in
      this Agreement and any Note held by it in favor of any Federal Reserve Bank
      in
      accordance with Regulation A of the Federal Reserve Board or U.S. Treasury
      Regulation 31 CFR §203.14, and such Federal Reserve Bank may enforce
      such pledge or security interest in any manner permitted under Applicable Law;
      it being understood that no such security interest or pledge shall
      release any Lender from any of its obligations hereunder or shall substitute
      such Federal Reserve Bank as a party hereto.

     

    

    
      
        
          
          

        

        
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    (e)
      Register.  The Administrative Agent, acting solely for this
      purpose as an agent of the Borrower, shall maintain at the Administrative
      Agent’s Payment Office a copy of each Assignment Agreement delivered to it and a
      register for the recordation of the names and addresses of the Lenders, and
      the
      Commitments of, and principal amounts of the Loans owing to, each Lender
      pursuant to the terms hereof from time to time (the
“Register”).  The entries in the Register shall be
      conclusive, and the Borrower, the Administrative Agent and the Lenders may
      treat
      each Person whose name is recorded in the Register pursuant to the terms hereof
      as a Lender hereunder for all purposes of this Agreement, notwithstanding notice
      to the contrary.  The Register shall be available for inspection by
      the Borrower and any Lender, at any reasonable time and from time to time upon
      reasonable prior notice.

     

    SECTION
      10.9 Set-off. In addition to any rights now or
      hereafter granted under Applicable Law or otherwise, and not by way of
      limitation of any such rights, if the Loans have been accelerated, each
      Financing Party is authorized at any time and from time to time, without
      presentment, demand, protest or other notice of any kind to any Credit Party
      or
      to any other Person (any such notice being waived to the fullest extent
      permitted by Applicable Law), to set off and appropriate and apply any and
      all
      deposits (general or special, time or demand, provisional or final) at any
      time
      held by, and other Indebtedness at any time owing by, such Financing Party
      (including by branches and agencies of any Financing Party) to or for the credit
      or the account of a Credit Party against and on account of any and all
      Obligations owing to such Financing Party, now or hereafter existing,
      irrespective of whether or not such Financing Party shall have made demand
      under
      any Financing Document and although such Obligations may be contingent or
      unmatured. Each Financing Party agrees promptly to notify the applicable Credit
      Party and the Administrative Agent after any such set-off and application made
      by such Financing Party; provided that the failure to give such notice
      shall not affect the validity of such set-off and application.

     

    SECTION
      10.10 Notification of Addresses, Lending Offices,
      Etc. Each Agent and Lender shall notify the Administrative
      Agent in writing of any change in: (a) the address to which notices to such
      Agent or such Lender should be directed, (b) addresses of any Lending Office,
      (c) payment instructions in respect of all payments to be made to it hereunder
      and (d) such other administrative information as the Administrative Agent
      reasonably requests.

     

    SECTION
      10.11 Counterparts. This Agreement may be executed
      in any number of separate counterparts, each of which, when so executed, shall
      be deemed an original, and all of which taken together shall be deemed to
      constitute but one and the same instrument.

     

    SECTION
      10.12 Severability. The illegality or
      unenforceability in any jurisdiction of any provision of this Agreement or
      any
      document required hereunder shall not in any way affect or impair the legality
      or enforceability of the remaining provisions of this Agreement or such other
      document in such jurisdiction or such provision in any other jurisdiction.
      With
      respect to any such illegal or unenforceable provision in any jurisdiction,
      the
      parties hereto agree to as promptly as possible amend this Agreement (or such
      other document) in such a manner as to ensure that the substance of such
      provision shall be replaced (at least with respect to such jurisdiction) with
      alternative language having substantially equivalent effect that is legal and
      enforceable in such jurisdiction.

     

    

    
      
        
          
          

        

        
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    SECTION
      10.13 Third Party Beneficiaries. This Agreement is
      made and entered into for the sole protection and legal benefit of the parties
      hereto, the other Agent-Related Persons, the Indemnified Persons and their
      permitted successors and assigns (all of which, if not parties hereto, are
      third-party beneficiaries hereof for purposes of enforcing their respective
      rights hereunder), and no other Person shall be a direct or indirect legal
      beneficiary of, or have any direct or indirect cause of action or claim in
      connection with, this Agreement.

     

    SECTION
      10.14 Governing Law and Jurisdiction. (a) THIS
      AGREEMENT AND THE NOTES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
      THE LAW OF NEW YORK (NOT INCLUDING SUCH STATE’S CONFLICT OF LAWS PROVISIONS
      OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW);
PROVIDED THAT THE FINANCING PARTIES SHALL RETAIN ALL RIGHTS ARISING
      UNDER U.S. FEDERAL LAW.

     

    (b)
      EACH
      PARTY HERETO HEREBY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE
      U.S. DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK AND ANY APPELLATE
      COURT WITH RESPECT THERETO (COLLECTIVELY, THE “FEDERAL COURTS”) (OR, IN
      THE EVENT THE FEDERAL COURTS ARE UNAVAILABLE, THE SUPREME COURT OF THE STATE
      OF
      NEW YORK, COUNTY OF NEW YORK AND ANY APPELLATE COURT WITH RESPECT THERETO (SUCH
      COURTS, TOGETHER WITH THE FEDERAL COURTS, THE “NEW YORK COURTS”)) AND
      TO THE COURTS OF ITS OWN CORPORATE DOMICILE IN RESPECT OF ACTIONS BROUGHT
      AGAINST IT AS A DEFENDANT OVER ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF
      OR
      RELATING TO THE FINANCING DOCUMENTS. EACH PARTY HERETO IRREVOCABLY WAIVES,
      TO
      THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW
      OR
      HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING
      BROUGHT IN ANY SUCH COURT, ANY CLAIM THAT ANY SUCH SUIT, ACTION OR PROCEEDING
      BROUGHT IN SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM AND ANY RIGHT
      TO
      WHICH IT MAY BE ENTITLED ON ACCOUNT OF PLACE OF RESIDENCE OR DOMICILE PURSUANT
      TO APPLICABLE LAW, AND FURTHER AGREES THAT A FINAL JUDGMENT IN ANY SUCH SUIT,
      ACTION OR PROCEEDING BROUGHT IN SUCH COURT WILL BE CONCLUSIVE AND BINDING UPON
      SUCH PARTY. EACH CREDIT PARTY IRREVOCABLY CONSENTS TO THE
      APPOINTMENT OF THE PROCESS AGENT AS ITS AGENT TO RECEIVE SERVICE OF PROCESS
      (WITH RESPECT TO ALL OF THE FINANCING DOCUMENTS AND ALL OTHER RELATED AGREEMENTS
      TO WHICH IT IS A PARTY) IN NEW YORK, NEW YORK. EACH PARTY AGREES THAT A JUDGMENT
      IN ANY SUCH ACTION, SUIT OR PROCEEDING MAY BE ENFORCED IN ANY OTHER APPLICABLE
      JURISDICTION BY SUIT UPON JUDGMENT, A CERTIFIED COPY OF WHICH SHALL BE
      CONCLUSIVE EVIDENCE OF THE JUDGMENT. Each of the parties hereto further agrees
      that service of process may be made personally or (with respect to a Credit
      Party) by mailing or delivering a copy of the summons and complaint or other
      legal process in any such legal suit, action or proceeding to a Credit Party
      in
      care of the Process Agent and such agent is hereby authorized to accept, receive
      and acknowledge the same for and on 

     

    

    
      
        
          
          

        

        
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    behalf
      of
      each Credit Party and to admit service with respect thereto. Service upon the
      Process Agent shall be deemed to be personal service on the applicable Credit
      Party and shall be legal and binding upon the applicable Credit Party for all
      purposes notwithstanding any failure to mail copies of such legal process to
      the
      applicable Credit Party, or any failure on the part of the applicable Credit
      Party to receive the same. Nothing herein shall affect the right to serve
      process in any other manner permitted by Applicable Law or any right to bring
      legal action or proceedings in any other competent jurisdiction. Each party
      further agrees that the aforesaid courts shall have exclusive jurisdiction
      with
      respect to any claim or counterclaim of any party based upon the assertion
      that
      the rate of interest charged by or under this Agreement or under the other
      Financing Documents is usurious. Each party hereby waives any right to stay
      or
      dismiss any action or proceeding under or in connection with this Agreement
      or
      any other Financing Document brought before the foregoing courts on the basis
      of
forum non conveniens and any rights that it may be entitled to on
      account of place of residence or domicile. The foregoing provisions constitute,
      among other things, a special arrangement for service among the parties to
      this
      Agreement for the purposes of 28 U.S.C. §1608.

     

    (c)
      Each
      Credit Party irrevocably waives, to the fullest extent permitted by Applicable
      Law, any claim that any action or proceeding commenced against it relating
      in
      any way to this Agreement and/or any of the other Financing Document(s) should
      be dismissed or stayed by reason, or pending the resolution, of any action
      or
      proceeding commenced by such Credit Party relating in any way to this Agreement
      and/or the other Financing Documents, whether or not commenced earlier. To
      the
      fullest extent permitted by Applicable Law, each Credit Party shall take all
      measures necessary for any such action or proceeding commenced against it to
      proceed to judgment before the entry of judgment in any such action or
      proceeding commenced by such Credit Party.

     

    (d)
      To
      the extent that any party hereto may, in any suit, action or proceeding brought
      in México or in any other jurisdiction arising out of or in connection with this
      Agreement and/or any of the other Financing Document(s), be entitled to the
      benefit of any provisions of Applicable Law requiring any other Person in such
      suit, action or proceeding to post security for costs or to post a bond to
      take
      such action, each party hereto hereby irrevocably waives any such benefit to
      the
      fullest extent now or hereafter permitted under Applicable Law.

     

    (e)
      To
      the extent that any Credit Party has or hereafter may acquire any immunity
      from
      jurisdiction of any court or from any legal process (whether through service
      or
      notice, attachment prior to judgment, attachment in aid of execution or
      otherwise) with respect to itself or its Property, it hereby waives or will
      irrevocably waive such immunity in respect of its obligations under the
      Financing Documents to the extent permitted by Applicable Law and, without
      limiting the generality of the foregoing, the waivers set forth in this
      paragraph shall have effect to the fullest extent permitted under the Foreign
      Sovereign Immunities Act of 1976 of the United States and are intended to be
      irrevocable for purposes of such Act.

     

    SECTION
      10.15 Waiver of Jury Trial. EACH OF THE PARTIES
      HERETO KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ITS RESPECTIVE RIGHTS
      TO
      A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED UPON, ARISING OUT OF
      OR
      RELATED TO THE FINANCING DOCUMENTS OR THE TRANSACTIONS 

    

    
      
        
          
          

        

        
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    CONTEMPLATED
      THEREBY, IN ANY ACTION, LITIGATION OR OTHER PROCEEDING OF ANY TYPE BROUGHT
      BY
      ANY SUCH PERSON AGAINST ANY OTHER SUCH PERSON OR ANY AGENT-RELATED PERSON OR
      PARTICIPANT, WHETHER WITH RESPECT TO CONTRACT CLAIMS, TORT CLAIMS OR OTHERWISE.
      EACH OF THE PARTIES HERETO AGREES THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL
      BE TRIED BY A COURT TRIAL WITHOUT A JURY. WITHOUT LIMITING THE FOREGOING, THE
      PARTIES FURTHER AGREE THAT THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY IS WAIVED
      BY OPERATION OF THIS SECTION AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING
      THAT SEEKS, IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY
      OF
      THE FINANCING DOCUMENTS OR ANY PROVISION THEREOF. THE AGREEMENT OF EACH PARTY
      HERETO TO THIS PROVISION IS A MATERIAL INDUCEMENT FOR EACH OF THE OTHER PARTIES
      HERETO TO ENTER INTO THIS AGREEMENT AND THE OTHER FINANCING DOCUMENTS TO WHICH
      IT IS A PARTY.

     

    SECTION
      10.16 Judgment. (a) Each Credit Party’s
      obligations hereunder and under the other Financing Documents to make payments
      in Dollars or Pesos (as applicable) shall not be discharged or satisfied by
      any
      tender or recovery pursuant to any judgment expressed in or converted into
      any
      currency other than Dollars or Pesos (as applicable). If, for the purpose of
      obtaining or enforcing judgment against any Credit Party in any court or in
      any
      jurisdiction, it becomes necessary to convert into or from any currency other
      than Dollars or Pesos (as applicable) (such other currency, the “Judgment
      Currency”), the conversion shall be made at the Dollar/Peso Equivalent in
      the case of Dollars and Pesos and, in the case of other currencies, the rate
      of
      exchange as quoted by the Administrative Agent or, if the Administrative Agent
      does not quote a rate of exchange on such currency, by a known dealer in such
      currency designated by the Required Lenders of the applicable Tranche. Each
      such
      conversion shall be determined as of the Business Day preceding the Business
      Day
      on which the judgment is given (such preceding Business Day, the “Judgment
      Currency Conversion Date”).

     

    (b)
      If
      there is a change in the rate of exchange prevailing between the Judgment
      Currency Conversion Date and the date of actual payment of the amount due,
      then
      the Borrower covenants to pay (or cause to be paid) such additional amounts
      (if
      any) as may be necessary to ensure that the amount paid in the Judgment
      Currency, when converted at the rate of exchange prevailing on the date of
      payment, will produce the amount of Dollars or Pesos (as applicable) that could
      have been purchased with the amount of Judgment Currency stipulated in the
      judgment or judicial award at the rate of exchange prevailing on the Judgment
      Currency Conversion Date.

     

    (c)
      For
      purposes of determining the Dollar/Peso Equivalent or rate of exchange under
      this Section, such amounts shall include any premium and costs payable in
      connection with the purchase of the Dollars or Pesos (as
      applicable).

     

    SECTION
      10.17 Entire Agreement. The Financing Documents
      embody the entire agreement and understanding among the parties hereto, and
      supersede all prior or contemporaneous agreements and understandings of such
      Persons, verbal or written, relating to the subject matter hereof and
      thereof.

     

    

    
      
        
          
          

        

        
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    SECTION
      10.18 Use of Names and Marks. No use of the Lead
      Arranger’s or Financing Party’s (or any of their respective Affiliates’) name,
      trademarks, service marks or symbols may be made by any Credit Party or any
      of
      their Affiliates in any advertisements or public announcements (including press
      releases) without such Lead Arranger’s or Financing Party’s (or such
      Affiliate’s) prior written approval. No Credit Party shall disclose or divulge
      (and shall prohibit its Affiliates from disclosing or divulging) any written
      opinions or advice rendered by the Lead Arranger, any Financing Party, any
      of
      their respective Affiliates or any of their agents, counsel or representatives
      in connection with the transaction contemplated hereby without the prior written
      consent of the Lead Arranger, such Financing Party, such Affiliate or such
      agent, counsel or representative; provided that a Credit Party may make
      such disclosure to its stockholders, its counsel and, as required by Applicable
      Law, Governmental Authorities. The Lead Arranger, any Financing Party and their
      respective Affiliates may use each Credit Party’s name, trademarks or service
      marks for the purpose of tombstone advertising. Neither the Lead Arranger,
      any
      Financing Party nor any of their respective Affiliates shall otherwise use
      a
      Credit Party’s or any Credit Party Affiliates’ name, trademarks, service marks
      or symbols in any advertisements or public announcements (including press
      releases) without the prior written consent of the applicable Credit Party
      or
      Credit Party Affiliate.

     

    SECTION
      10.19 Use of English Language. All certificates,
      reports, notices, documents and other communications (excluding estatutos
      sociales and powers-of-attorney) given or delivered pursuant to the
      Financing Documents shall be in the English language, except as required by
      Mexican law. If any Financing Document, certificate, reports, notices, documents
      or other communications is not originally executed in English, then the Borrower
      shall (at their own expense), concurrently with (or as promptly as possible
      after) the delivery thereof, provide the recipients thereof of a certified
      English translation thereof, upon which translation all Financing Parties shall
      have the right to rely for all purposes of the Financing Documents.

     

    SECTION
      10.20 No Partnership, Etc. The Financing Parties
      and the Credit Parties intend that the relationship between them shall be solely
      that of creditor and debtor. Nothing contained in this Agreement, the Notes
      or
      any other Financing Document shall be deemed or construed to create a
      partnership, tenancy-in-common, joint tenancy, joint venture or co-ownership
      by
      or between any Financing Party, on the one hand, and any other Financing Party,
      Credit Party or any other Person, on the other hand. The Financing Parties
      shall
      not in any way be responsible or liable for the debts, losses, obligations
      or
      duties of the Credit Parties or any other Person with respect to the Network
      or
      otherwise. All obligations to pay real property or other taxes, assessments,
      insurance premiums and all other fees and charges arising from the ownership,
      operation or occupancy of the Network (and to perform all obligations under
      the
      agreements and contracts relating thereto) shall be the sole responsibility
      of
      the Credit Parties.

     

    SECTION
      10.21 Confidentiality. Each of the Administrative
      Agent, the Peso Agent and the Lenders agrees to maintain the confidentiality
      of
      the Information (as defined below), except that Information may be disclosed
      (a) to its Affiliates and to its and its Affiliates’ respective partners,
      directors, officers, employees, agents, advisors and other representatives
      (it
      being understood that the Persons to whom such disclosure is made will be
      informed of the confidential nature of such Information and instructed to keep
      such Information confidential), (b) to the extent requested by any
      regulatory authority purporting to have jurisdiction over it, (c) to the
      extent required by applicable laws or regulations or by any subpoena or similar
      

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 81

          
            

          

        

        
          
          

        

      

    

    

    legal
      process, (d) to any other party hereto, (e) in connection with the
      exercise of any remedies hereunder or under any other Financing Document, any
      action or proceeding relating to this Agreement or any other Financing Document,
      the enforcement of rights hereunder or thereunder or any litigation or
      proceeding to which the Administrative Agent, the Peso Agent or any Lender
      or
      any of its Affiliates may be a party, (f) subject to an agreement
      containing provisions substantially the same as those of this Section, to
      (i) any assignee of or Participant in, or any prospective assignee of or
      Participant in, any of its rights or obligations under this Agreement (in the
      case of a Participant or prospective Participant, only if such Person is a
      Lender or an Affiliate of a Lender or has been approved by the Borrower to
      receive non-public Information), (ii) any actual or prospective
      counterparty, surety, reinsurer, guarantor or credit liquidity enhancer (or
      their advisors) to or in connection with any swap, derivative or other
      protective transaction relating to the Borrower and its obligations or (iii)
      to
      any rating agency when required by it, (g) with the consent of the Borrower
      or (h) to the extent such Information (x) becomes publicly available
      other than as a result of a breach of this Section or (y) becomes available
      to the Administrative Agent, the Peso Agent, any Lender or any of their
      respective Affiliates on a nonconfidential basis from a source other than the
      Borrower.

     

    “Information”
      means all information received from the Borrower or any of its Subsidiaries
      relating to the Borrower or any of its Subsidiaries or any of its respective
      businesses, other than any such information that is available to the
      Administrative Agent, the Peso Agent or any other Lender on a nonconfidential
      basis prior to disclosure by the Borrower or any of its Subsidiaries;
provided that, in the case of information received from the Borrower or
      any of its Subsidiaries after the date hereof, such information is clearly
      identified at the time of delivery as confidential.  Any Person
      required to maintain the confidentiality of Information as provided in this
      Section shall be considered to have complied with its obligation to do so if
      such Person has exercised the same degree of care to maintain the
      confidentiality of such Information as such Person would accord to its own
      confidential information.

     

    

    
      
        
          
          

        

        
          Credit
            Agreement 82

          
            

          

        

        
          
          

        

      

    

    

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

     

    AXTEL,
      S.A.B. DE C.V.,

      as
      Borrower

    

    
      

      By: ________________________________

        Name:_____________________________

        Title:______________________________

    

    
      

      By: ________________________________

        Name:_____________________________

        Title:______________________________

    

    

    AVANTEL,
      S. DE R.L. DE C.V., as a Guarantor

    

    
      

      By: ________________________________

        Name:_____________________________

        Title:______________________________

    

    
      

      By: ________________________________

        Name:_____________________________

        Title:______________________________

    

    

    AVANTEL
      INFRAESTRUCTURA, S. DE R.L. DE C.V., as a Guarantor

    

    
      

      By: ________________________________

        Name:_____________________________

        Title:______________________________

    

    
      

      By: ________________________________

        Name:_____________________________

        Title:______________________________

    

     

     

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    

    

    

    ADEQUIP,
      S.A.,

      as
      a Guarantor

    

    
      

      By: ________________________________

        Name:_____________________________

        Title:______________________________

    

    
      

      By: ________________________________

        Name:_____________________________

        Title:______________________________

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    CITIBANK,
      N.A.,

      as
      the Administrative Agent

    

    

    By: ________________________________

      Name:_____________________________

      Title:______________________________

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    BANCO
      NACIONAL DE MEXICO, S.A.

      INTEGRANTE
      DEL GRUPO FINANCIERO

      BANAMEX,

      as
      the Peso Agent

    

    
      

      By: ________________________________

        Name:_____________________________

        Title:______________________________

    

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    BANCO
      NACIONAL DE MEXICO, S.A.

      INTEGRANTE
      DEL GRUPO FINANCIERO

      BANAMEX,

      as
      a Lender

    

    
      

      By: ________________________________

        Name:_____________________________

        Title:______________________________

    

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    CITICORP
      NORTH AMERICA INC., as a Lender

    

    
      

      By: ________________________________

        Name:_____________________________

        Title:______________________________

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    SCHEDULE
      2.1

    to
      Credit Agreement

     

    COMMITMENTS

    AND
      PRO RATA SHARES

    

    

    
      	
              Dollar
                Commitments

            
	 	 
	
              Lender

            	
              Dollar
                Commitment

            
	
              Citicorp
                North America Inc.

            	
              $110,
                225,133.28

            
	
              Total
                Dollar Commitments

            	
              $110,
                225,133.28

            
	 	 
	
              Peso
                Commitments

            
	 	 
	
              Lender

            	
              Peso
                Commitment

            
	
              Banco
                Nacional de México, S.A. Integrante del Grupo Financiero
                Banamex

            	
               

              P$1,042,362,416.67

            
	
              Total
                Peso Commitments

            	
              P$1,042,362,416.67

            

    

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    SCHEDULE
      5.1(b)

    to
      Credit Agreement

     

    CONSENTS
      AND GOVERNMENTAL APPROVALS REQUIRED FOR FINANCING

    

    

    
      	
              Authorization,
                Consent, Approval

              Notice
                or Filing

            	
              Governmental
                Authority

              or
                other Person

            

    

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    SCHEDULE
      5.1(c)

    to
      Credit Agreement

     

    INDEBTEDNESS
      AND CONTINGENT OBLIGATIONS

     

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    SCHEDULE
      5.1(f)

    to
      Credit Agreement

     

    EQUITY
      INVESTMENTS

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    SCHEDULE
      5.1(i)

    to
      Credit Agreement

     

    GOVERNMENTAL
      APPROVALS

     

    
      	 	 	 
	 	 	 
	 	 	 
	 

    

    

     

    

    SCHEDULE
      5.1(l)

    to
      Credit Agreement

     

    LEGAL
      PROCEEDINGS

     

    

    

     

    

     

    

    

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    SCHEDULE
      6.1(k)

     

    to
      Credit Agreement

     

    

     

                     MATERIAL
      CONCESSIONS            

     

    

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    SCHEDULE
      6.2(a)(vii)

    to
      Credit Agreement

     

    

     

                     CONTINUING
      EXISTING
      LIENS            

     

    

     

    

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    SCHEDULE
      10.2

    to
      Credit Agreement

     

    LENDING
      OFFICES;

     

                     ADDRESSES
      FOR
      NOTICES            

     

    

     

    CREDIT
      PARTIES

     

    Axtel,
      S.A.B. de C.V.

    Boulevard
      Díaz Ordaz Km 3.33, Lote 1

    Colonia
      Unidad San Pedro

    San
      Pedro
      Garza García, N.L.

    MEXICO
      66215

    Attention:
      Chief Financial Officer

    Tel.
      +52
      (81) 8114.1250

    Fax.
      +52
      (81) 8114.1771

    

    With
      copy
      in all cases to:

    

    Cahill
      Gordon & Reindell LLP

    Eighty
      Pine Street

    New
      York,
      N.Y. 10005-1702

    U.S.A.

    Attention:
      Roger Andrus, Esq.

    Tel.
      (212) 701.3000

    Fax.
      (212) 269.5420

    

    and

    

    D&A
      Morales y Asociados, S.C.

    Torre
      ING
      Comercial América

    Batallón
      de San Patricio 111-501

    Colonia
      Valle Oriente

    San
      Pedro
      Garza García, N.L.

    MEXICO
      66269

    Attention:
      Guillermo Robles-Portilla

    Tel.
      +52
      (81) 8129.9200

    Fax.
      +52
      (81) 8129.9220

    

    

    ADMINISTRATIVE
      AGENT

     

    Notice
      Office and Administrative Agent’s Payment Office:

    

    Citibank,
      N.A.

    2
      Penns
      Way

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    Suite
      200

    New
      Castle, DE 19720

    Attention:
      Lisa Rodriguez

      Telephone:
      (302) 894-6070

      Facsimile:  (212)
      994-0961

    

    Payment
      Instructions:

    

    The
      account of the Administrative Agent maintained by the Administrative Agent
      at
      399 Park Avenue, New York, NY 10043, Tel: (302) 894-6070, Fax: (212) 994-0961,
      Attn. Lisa Rodriguez, E-mail: lisa.m1.rodriguez@citigroup.com and with
      payment instructions of Citibank, N.A., ABA No. 021000089, Acct. No. 36852248,
      Reference: Medium Term Finance/Agency.

    

    PESO
      AGENT

     

    Notice
      Office:

    

    Banco
      Nacional de México, S.A. integrante del Grupo Financiero Banamex

    Av.
      Batallón de San Patricio # 109, Piso 5

    Col.
      Valle Oriente

    Garza
      García, N.L.

    México
      66269

    Attention:  Jesús
      Cantú / María Antonieta Zertuche

     Telephone:  (81)
      1226-8526 / 8505

     Facsimile:   (81)
      1226-8560

    

    Peso
      Agent’s Payment Office (Pesos):

    Banco
      Nacional de México, S.A. integrante del Grupo Financiero Banamex

    Isabel
      la
      Católica #165

    México
      D.F.

    Account
      No. 56028-8, Branch 870, at the name of the Peso Agent

    Attention:
      Juan Carlos Pérez Rocha/Ma. de la Luz Cruz

      Telephone:
      (011) 5255 2262 3787

      Facsimile:
      (011) 5255 2262 2912

    

    

    

    LENDERS:

     

    On
      record
      with the Administrative Agent

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    EXHIBIT
      A

     

    to
      Credit Agreement

     

    FORM
      OF NOTE

     

    [RM
      TO PROVIDE FORM PAGARE FOR EACH OF DOLLAR LOANS (EXHIBIT A-1), WITH
      DIFFERENT VARIATIONS FOR LIBOR LOAN AND BASE RATE LOANS, AND PESO LOANS
      (EXHIBIT A-2)]

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    EXHIBIT
      B

    to
      Credit Agreement

     

    FORM
      OF

    NOTICE
      OF BORROWING

     

    

     

    Date:                                 [____________],
      200[__]

     

    
      	
              To:

            	
              Citibank,
                N.A., as the Administrative Agent under the Credit Agreement, dated
                as of
                November 30, 2006 (as amended from time to time, the “Credit
                Agreement”), among Axtel, S.A.B. de C.V. (the “Borrower”),
                Avantel, S. de R.L. de C.V., certain of their subsidiaries as Guarantors,
                various financial institutions from time to time party thereto as
                lenders,
                such Administrative Agent, and Banco Nacional de Mexico, S.A. Integrante
                del Grupo Financiero Banamex, as Peso
                Agent.

            

    

     

    Ladies
      and Gentlemen:

     

    The
      undersigned refer to the Credit Agreement (terms defined therein being used
      herein as therein defined) and hereby gives you notice irrevocably, pursuant
      to
      Section 2.3 of the current draft of the Credit Agreement, of the borrowings
      specified below:

     

    (a)
      The
      proposed Dollar Loan borrowings shall be as follows:  $[________] of
      Loans in Dollars.  The proposed Peso Loan borrowings shall be as
      follows:  P$[________] of Loans in Pesos.

     

    (b)
      The
      Business Day of the proposed borrowing is [____________], 2006.

     

    (c)
      For
      the Dollar Loans, the Type of such Loans is a [LIBOR][Base Rate] Loan and the
      initial Interest Period for such Loans is [one][three] months.

     

    (d)
      Proceeds of the Loans shall be delivered by the Lenders in the manner specified
      in Section 2.3(b) of the Credit Agreement, and the Administrative Agent shall
      delivered such proceeds to the Borrower to the following account(s):
      [___________________]

     

    The
      undersigned certifies that the following statements are true on the date hereof
      (assuming that the Financing Documents were in effect as of the date hereof),
      and will be true on the Closing Date, both before and after giving effect
      thereto and to the application of the proceeds of the Loans on such
      date:

     

    (a)
      its
      representations and warranties contained in the Financing Documents (including
      Article V of the Credit Agreement) are true and correct as though made on
      and as of such date (except to the extent such representations and warranties
      expressly relate to an earlier date, in which case they are true and correct
      as
      of such date), and

     

    (b)
      no
      Default or Unmatured Default exists or will result from such
      borrowing.

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

                                                                   
      AXTEL, S.A.B. DE C.V.

     

    

    
      

      By: ________________________________

        Name:_____________________________

        Title:______________________________

    

    
      

      By: ________________________________

        Name:_____________________________

        Title:______________________________

    

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

                                                                                                                                              EXHIBIT
      C

    to
      Credit Agreement

     

    FORM
      OF

    ASSIGNMENT
      AGREEMENT

     

    This
      ASSIGNMENT AND ACCEPTANCE AGREEMENT (the
“Agreement”) dated as of ___________, 20__ is made
      between ____________
      (the “Assignor”) and ____________ (the
“Assignee”).

     

    RECITALS

     

    The
      Assignor is a party to the Credit Agreement, dated as of
[___________], 2006 (as amended or otherwise modified from time
      to time, the “Credit Agreement”), among Axtel, S.A.B. de C.V. (the
“Borrower”), Avantel, S. de R.L. de C.V., their subsidiaries, various
      financial institutions from time to time party thereto (including the Assignor,
      the “Lenders”), Citibank, N.A., as the Administrative Agent, and Banco
      Nacional de Mexico, S.A. Integrante del Grupo Financiero Banamex, as Peso Agent.
      Capitalized terms used but not otherwise defined herein shall have the
      respective meanings set forth in the Credit Agreement.

     

    The
      Assignor wishes to assign to the Assignee [a portion][all] of the rights and
      obligations of the Assignor as a Lender under the Credit Agreement in respect
      of
      the Loans, its Commitment and the other rights and obligations of the Assignor
      in connection therewith, and the Assignee wishes to accept assignment of such
      rights and to assume such obligations from the Assignor, in each case on the
      terms and subject to the conditions of this Agreement.

     

    NOW,
      THEREFORE, in consideration of the foregoing and the mutual
      agreements contained herein, the parties hereto agree as follows:

     

    SECTION
      1. Assignment and Acceptance. (a) Subject to the terms and
      conditions of this Agreement: (i) the Assignor hereby sells, transfers and
      assigns to the Assignee and (ii) the Assignee hereby purchases, assumes and
      undertakes from the Assignor, without recourse and without representation or
      warranty (except as provided in this Agreement), [P]$______ of the Assignor’s
      [Dollar] [Peso] Commitment, together with a corresponding portion of the
      Assignor’s outstanding [Dollar] [Peso] Loans, and all related rights, benefits,
      obligations, liabilities and indemnities of the Assignor under and in connection
      with the Credit Agreement (all of the foregoing being herein called the
“Assigned Rights and Obligations”). [For the purpose of clarification,
      if this assignment is for less than all of the Assignor’s Dollar Loans and both
      LIBOR Loans and Base Rate Loans are outstanding, then this assignment is an
      assignment of the Assignor’s LIBOR Loans and Base Rate Loans on a pro
      rata basis.]

     

    (b)
      With
      effect on and after the Effective Date (as defined in Section 5),
      the Assignee shall be a party to the Credit Agreement and succeed to all of
      the
      rights and be obligated to perform all of the obligations of a Lender under
      the
      Credit Agreement, including the requirements concerning confidentiality and
      the
      payment of indemnification. The Assignee agrees that it shall perform in
      accordance with their terms all of the obligations that by the
      terms

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    of
      the
      Credit Agreement are required to be performed by it as a Lender. It is the
      intent of the parties hereto that the Assignor shall relinquish its rights
      and
      be released from its obligations under the Credit Agreement to the extent such
      rights and obligations have been assumed by the Assignee; provided that
      the Assignor shall not relinquish its rights under Article III or
      Section 10.4 or 10.5 of the Credit Agreement in respect of the Assigned
      Rights and Obligations to the extent such rights relate to the time before
      the
      Effective Date.

     

    (c)
      After
      giving effect to the assignment and assumption set forth herein, on the
      Effective Date the Assignee’s [Dollar] [Peso] Commitment will be [P]$__________
      and the Assignor’s [Dollar] [Peso] Commitment will be
      [P]$__________.

     

    (d)
      After
      giving effect to the assignment and assumption set forth herein, on the
      Effective Date the Assignee’s outstanding Dollar Loans will be $__________, the
      Assignee’s outstanding Peso Loans will be P$__________, the Assignor’s
      outstanding Dollar Loans will be $__________, and the Assignor’s outstanding
      Peso Loans will be P$__________.

     

    SECTION
      2. Payments. (a) As consideration for the sale, transfer and
      assignment contemplated in Section 1, the Assignee shall pay to the
      Assignor on the Effective Date in immediately available funds an amount equal
      to
      [P]$__________, representing the principal amount of all outstanding and funded
      Loans and participations included within the Assigned Rights and Obligations.
      Such payment shall be made to the Assignor by wiring such amounts to [account
      information].

     

    (b)
      The
      [Assignor][Assignee] further agrees to pay to the Administrative Agent a
      processing fee in the amount specified in Section 10.8(a) of the Credit
      Agreement.

     

    SECTION
      3. Reallocation of Payments. Any interest, fees and other
      payments accrued with respect to the Assigned Rights and Obligations: (a) to
      the
      Effective Date, shall be for the account of the Assignor, and (b) on and after
      the Effective Date, shall be for the account of the Assignee. Each of the
      Assignor and the Assignee agrees that it shall hold in trust for the other
      party
      any interest, fees and other amounts that it may receive to which the other
      party is entitled pursuant to the preceding sentence and shall pay to the other
      party any such amounts that it may receive promptly upon receipt (including,
      for
      example, interest paid by the Credit Parties on the Assigned Rights and
      Obligations on the first applicable Payment Date after the Effective
      Date).

     

    SECTION
      4. Independent Credit Decision. The Assignee: (a) acknowledges
      that it has received a copy of the Credit Agreement, the Schedules and Exhibits
      thereto and the other Financing Documents (other than the engagement letter
      described in the definition of “Financing Documents” and the fee letter(s)
      described in Section 2.7 of the Credit Agreement), together with copies of
      the most recent Financial Statements of the Credit Parties as described in
      Section 6.1(h) (or Section 4.1(c)) of the Credit Agreement, and such
      other documents and information as it has deemed appropriate to make its own
      credit and legal analysis and decision to enter into this Agreement, and (b)
      agrees that it shall, independently and without reliance upon the Assignor,
      any
      Agent or any other Lender and based upon such documents and information as
      it
      shall deem appropriate at the time, continue to make its own credit and legal
      decisions in taking or not taking action under the Financing
      Documents.

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    SECTION
      5. Effective Date; Notices. (a) As between the Assignor and the
      Assignee, the effective date for this Agreement shall be __________, ____ (the
      “Effective Date”); provided that the following conditions
      precedent have been satisfied on or before the Effective Date:

     

    (i)
      this
      Agreement shall be duly executed and delivered by the Assignor and the
      Assignee,

     

    (ii)
      the
      consent of the Borrower and the Administrative Agent, if required for an
      effective assignment of the Assigned Rights and Obligations by the Assignor
      to
      the Assignee under Section 10.8(a) of the Credit Agreement, shall have been
      duly obtained and shall be in full force and effect as of the Effective
      Date,

     

    (iii)
      the
      Assignee shall pay to the Assignor all amounts due to the Assignor under this
      Agreement, and

     

    (iv)
      the
      processing fee referred to in Section 2(b) shall have been paid to
      the Administrative Agent.

     

    (b)
      Promptly after the execution of this Agreement, the Assignor shall deliver
      to
      the Borrower and the Administrative Agent (if applicable, for acknowledgment
      by
      the Administrative Agent and the Borrower) a Notice of Assignment substantially
      in the form attached hereto as Schedule 1.

     

    [SECTION
      6. Agent. [INCLUDE ONLY IF THE ASSIGNOR IS AN AGENT] (a) The
      Assignee hereby appoints and authorizes the Assignor to take such action as
      [________] Agent (in the Assignor’s role as such) on its behalf and to exercise
      such powers under the Financing Documents as are delegated to the Assignor
      as
      such Agent by the Lenders pursuant to the Credit Agreement.

     

    (b)
      The
      Assignee shall assume no duties or obligations held by the Assignor in its
      capacity as an Agent under the Financing Documents.]

     

    SECTION
      7. Representations and Warranties. (a) The Assignor represents
      and warrants that: (i) it is the legal and beneficial owner of the interest
      being assigned by it hereunder and that such interest is free and clear of
      any
      Lien or other adverse claim, (ii) it is duly organized and existing and has
      the
      full power and authority to take, and has taken, all action necessary to execute
      and deliver this Agreement and any other documents required or permitted to
      be
      executed or delivered by it in connection with this Agreement, and to fulfill
      its obligations hereunder, (iii) no notices to, or consents, authorizations
      or
      approvals of, any Person are required (other than any already given or obtained)
      for its due execution, delivery and performance of this Agreement, and apart
      from any agreements or undertakings required by the Credit Agreement, no further
      action by, notice to, or filing with any Person is required of it for such
      execution, delivery or performance, and (iv) this Agreement has been duly
      executed and delivered by it and constitutes the legal, valid and binding
      obligation of the Assignor, enforceable against the Assignor in accordance
      with
      the terms hereof, subject, as to enforcement, to bankruptcy, insolvency,
      moratorium, reorganization and other laws of general application relating to
      or
      affecting creditors’ rights and to general equitable principles.

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    (b)
      The
      Assignor makes no representation or warranty and assumes no responsibility
      with
      respect to any statements, warranties or representations made in or in
      connection with the Credit Agreement or the other Transaction Documents or
      the
      execution, legality, validity, enforceability, genuineness, sufficiency or
      value
      of the Credit Agreement, the other Transaction Documents or any other instrument
      or document furnished pursuant thereto. The Assignor makes no representation
      or
      warranty in connection with, and assumes no responsibility with respect to,
      the
      solvency, financial condition or statements of the Credit Parties or any
      Affiliate thereof, or the performance or observance by the Credit Parties or
      any
      Affiliate thereof of any of its obligations under the Credit Agreement, any
      other Transaction Document or any other document furnished in connection
      therewith.

     

    (c)
      The
      Assignee represents and warrants that: (i) it is duly organized and existing
      and
      has the full power and authority to take, and has taken, all action necessary
      to
      execute and deliver this Agreement and any other documents required or permitted
      to be executed or delivered by it in connection with this Agreement, and to
      fulfill its obligations hereunder, (ii) no notices to, or consents,
      authorizations or approvals of, any Person are required (other than any already
      given or obtained) for its due execution, delivery and performance of this
      Agreement, and apart from any agreements or undertakings required by the Credit
      Agreement, no further action by, notice to, or filing with any Person is
      required of it for such execution, delivery or performance, (iii) this Agreement
      has been duly executed and delivered by it and constitutes the legal, valid
      and
      binding obligation of the Assignee, enforceable against the Assignee in
      accordance with the terms hereof, subject, as to enforcement, to bankruptcy,
      insolvency, moratorium, reorganization and other laws of general application
      relating to or affecting creditors’ rights and to general equitable principles,
      and (iv) it is an Eligible Assignee.

     

    SECTION
      8. Further Assurances. The Assignor and the Assignee each hereby
      agree to execute and deliver such other documents, and take such other action,
      as either party or the Administrative Agent reasonably may request in connection
      with the transactions contemplated by this Agreement, including the delivery
      of
      any notices or other documents to the Borrower or the Administrative Agent
      that
      may be required in connection with the assignment and assumption contemplated
      hereby.

     

    SECTION
      9. Miscellaneous. (a) Any amendment or waiver of any provision
      of this Agreement shall be in writing and signed by the parties hereto (an
      executed copy of which shall be delivered to the Administrative Agent). No
      failure or delay by either party hereto in exercising any right, power or
      privilege hereunder shall operate as a waiver thereof and any waiver of any
      breach of the provisions of this Agreement shall be without prejudice to any
      rights with respect to any other or further breach thereof.

     

    (b)
      All
      payments made hereunder shall be made without any set-off or
      counterclaim.

     

    (c)
      The
      Assignor and the Assignee each shall pay its own costs and expenses (including
      Attorney Costs) incurred in connection with the negotiation, preparation,
      execution and performance of this Agreement and related documents.

     

    (d)
      This
      Agreement may be executed in any number of counterparts and all of such
      counterparts taken together shall be deemed to constitute one and the same
      instrument.

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    (e)
      THIS
      AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF
      NEW
      YORK (NOT INCLUDING SUCH STATE’S CONFLICT OF LAWS PROVISIONS OTHER THAN SECTION
      5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW). The Assignor and the Assignee
      each irrevocably submits to the non-exclusive jurisdiction of any state or
      Federal court sitting in the Borough of Manhattan, New York City, New York
      over
      any suit, action or proceeding arising out of or relating to this Agreement,
      and
      irrevocably agrees that all claims in respect of such action or proceeding
      may
      be heard and determined in such New York state or Federal court. Each party
      to
      this Agreement hereby irrevocably waives any objection, including any objection
      to the laying of venue or based upon the grounds of forum non
      conveniens, that it may now or hereafter have to the bringing of any action
      or proceeding in such jurisdiction in respect of this Agreement.

     

    (f)
      THE
      ASSIGNOR AND THE ASSIGNEE EACH HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY
      WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION
      BASED HEREON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT
      OR
      ANY COURSE OF CONDUCT, COURSE OF DEALING OR STATEMENT (WHETHER ORAL OR
      WRITTEN).  THE AGREEMENT OF EACH PARTY HERETO TO THIS PROVISION IS A
      MATERIAL INDUCEMENT FOR EACH OF THE OTHER PARTIES HERETO TO ENTER INTO THIS
      AGREEMENT.

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

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

     

    [ASSIGNOR]

    

    
      

      By: ________________________________

        Name:_____________________________

        Title:______________________________

    

    

    [ASSIGNEE]

    

    
      

      By: ________________________________

        Name:_____________________________

        Title:______________________________

    

    Address:                                                                           

     

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    SCHEDULE
      1

    to
      Agreement

     

    NOTICE
      OF ASSIGNMENT AND ACCEPTANCE

     

    _______________,
      ____

    

    Citibank,
      N.A.,

      as
      the Administrative Agent

    [_____________]

    

    

    Axtel,
      S.A.B. de C.V.

    [_____________]

    

    Ladies
      and Gentlemen:

     

    We
      refer
      to the Credit Agreement, dated as of [____________], 2006 (as
      amended or otherwise modified from time to time, the “Credit
      Agreement”), among Axtel, S.A.B. de C.V. (the “Borrower”),
      Avantel, S. de R.L. de C.V., their subsidiaries, various financial institutions
      from time to time party thereto as lenders, Citibank, N.A., as the
      Administrative Agent, and Banco Nacional de Mexico, S.A. Integrante del Grupo
      Financiero Banamex, as Peso Agent. Capitalized terms used but not otherwise
      defined herein shall have the respective meanings set forth in the Credit
      Agreement.

     

    (a)
      We
      hereby give you notice of[, and request your consent to,] the assignment by
      __________________ (the “Assignor”) to _______________ (the
“Assignee”) of [all][a portion] of the right, title and interest
      of the
      Assignor as a Lender in and to the Credit Agreement (including [all][a portion]
      of the right, title and interest of the Assignor in and to the Assignor’s
      [Dollar] [Peso] Commitment and all outstanding [Dollar] [Peso] Loans of the
      Assignor pursuant to the Assignment and Acceptance Agreement attached hereto
      (the “Assignment Agreement”)). Before giving effect to such assignment
      (assuming no repayments, new fundings or new issuances after ________, ____),
      the outstanding principal amount of the Assignor’s Dollar Loans is $___________,
      the outstanding principal amount of the Assignor’s Peso Loans is P$___________.
      After giving effect to such assignment (assuming no repayments, new fundings
      or
      new issuances after ________, ____), the outstanding principal amount of the
      Assignor’s Dollar Loans is $___________, and the outstanding principal amount of
      the Assignor’s Peso Loans is P$___________.

     

    (b)
      The
      Assignee agrees that it shall be bound by the terms of the Credit Agreement
      as
      fully and to the same extent as if it were the Lender originally holding such
      interest in the Credit Agreement.

     

    (c)
      The
      following administrative details apply to the Assignee:

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    (i)           Notice
      Address:

     

    Assignee
      name:                                                                                     

    Address:                      

    Attention:                                

    Telephone:                                (___)
      ___-____

    Telecopier:                                (___)
      ___-____

     

    (ii)           Lending
      Office:

     

    

    

    

     

    (iii)           Payment
      Instructions:

     

    
      	
               

            	
              Account
                No.:

            	 	 

    

    At:           

    Reference:                                

    Attention:                                

     

    (d)
      You
      are entitled to rely upon the representations, warranties and covenants of
      each
      of the Assignor and the Assignee contained in the Assignment
      Agreement.

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    IN
      WITNESS WHEREOF, the Assignor and the Assignee have caused this
      Notice of Assignment and Acceptance to be executed by their respective duly
      authorized officials, officers or agents as of the date first above
      mentioned.

     

    Very
      truly yours,

     

    [ASSIGNOR]

    
       

      
 

      By: ________________________________

        Name:_____________________________

        Title:______________________________

    

         

     

    [ASSIGNEE]

    

    
      

      By: ________________________________

        Name:_____________________________

        Title:______________________________

    

    ASSIGNMENT
      AND ACCEPTANCE

    CONSENTED
      TO:

    

    CITIBANK,
      N.A.,

      as
      the Administrative Agent

     

    
      

      By: ________________________________

        Name:_____________________________

        Title:______________________________

    

    
      By: ________________________________

        Name:_____________________________

        Title:______________________________

    

     

    [AXTEL,
      S.A.B. DE C.V.]

     

    
      By: ________________________________

        Name:_____________________________

        Title:______________________________

    

     

    
      By: ________________________________

        Name:_____________________________

        Title:______________________________

    

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    EXHIBIT
      D

    to
      Credit Agreement

     

    FORM
      OF

     

    SUBSIDIARY
      JOINDER AGREEMENT

     

    SUBSIDIARY
      JOINDER AGREEMENT (this “Agreement”) dated as of ________,
      ___, by ______________, a __________ [corporation] (the “New
      Subsidiary”), in favor of Citibank, N.A., as Administrative Agent (the
“Administrative Agent”), for the benefit of the Financing Parties.
      Unless otherwise defined herein, capitalized terms used herein and defined
      in
      the Credit Agreement, dated as of [___________], 2006 (as
      amended or otherwise modified from time to time, the “Credit
      Agreement”), among Axtel, S.A.B. de C.V. (the “Borrower”),
      Avantel, S. de R.L. de C.V., their subsidiaries, various financial institutions
      from time to time party thereto as lenders, the Administrative Agent and Banco
      Nacional de Mexico, S.A. Integrante del Grupo Financiero Banamex, as Peso Agent
      (as amended, modified or supplemented from time to time, the “Credit
      Agreement”), are used herein as therein defined and the rules of
      interpretation set forth in Section 1.2 thereof shall apply
      hereto.

     

    WHEREAS,
      the Borrower has entered into the Credit Agreement and certain other Financing
      Documents providing for the making of Loans,

     

    WHEREAS,
      in connection with the Financing Documents, certain of the Borrower’s
      Subsidiaries have entered into (or are required to enter into) the Credit
      Agreement as Guarantors thereunder,

     

    WHEREAS,
      on ________, ___, the New Subsidiary was [newly formed/acquired] as a ___%
      [directly/indirectly] owned Subsidiary of the Borrower,

     

    WHEREAS,
      pursuant to Section 6.2(j) of the Credit Agreement, the New Subsidiary is
      required to become a party to the Credit Agreement as a Guarantor,
      and

     

    WHEREAS,
      the New Subsidiary desires to execute and deliver this Agreement in order to
      become a party to the Credit Agreement pursuant to Section 6.2(j) of the
      Credit Agreement,

     

    NOW,
      THEREFORE, IT IS AGREED as follows:

     

    SECTION
      1. Joinder. By executing and delivering this Agreement, the New
      Subsidiary hereby becomes a party to the Credit Agreement as a “Guarantor”
thereunder, and hereby expressly assumes all obligations and liabilities of
      a
“Guarantor” thereunder. The New Subsidiary hereby makes each of the
      representations and warranties contained in Section 5.1 of the Credit
      Agreement on the date hereof as if such representations and warranties were
      made
      as of the date hereof, after giving effect to this Agreement.

     

    SECTION
      2. Counterparts. This Agreement may be signed in any number of
      counterparts, each of which shall be an original, with the same effect as if
      the
      signatures were upon the same agreement.

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    SECTION
      3. Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND
      CONSTRUED IN ACCORDANCE WITH, THE LAW OF NEW YORK (NOT INCLUDING SUCH STATE’S
      CONFLICT OF LAWS PROVISIONS OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL
      OBLIGATIONS LAW).

     

    IN
      WITNESS WHEREOF, the undersigned has caused this Agreement to be
      duly executed and delivered as of the date first above written.

     

    [NEW
      SUBSIDIARY]

     

    Address:                                                                By:  __________________________

                                                                                        
        Name: ______________________

                                                                                        
        Title:________________________

    ACKNOWLEDGED:

     

    

      CITIBANK,
        N.A., as the Administrative Agent

       

      
        By: ________________________________

          Name:_____________________________

          Title:______________________________

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    EXHIBIT
      E

    to
      Credit Agreement

     

    FORMS
      OF OPINIONS

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