Document:

AMENDMENT TO RIGHTS AGREEMENT

      This AMENDMENT,  dated as of February 1, 2000, is between VIATEL,  INC., a
Delaware  corporation  (the  "Company"),  and THE BANK OF NEW  YORK,  a New York
banking corporation (the "Rights Agent").

                                    RECITALS

      A. The  Company  and the Rights  Agent are  parties to a Rights  Agreement
dated December 6, 1999 (the "Rights Agreement").

      B. HMTF Europe Acquisition Corp., a Delaware  corporation ("HMTF Europe"),
Chase Equity  Associates,  LLC, a Delaware  limited  liability  company  ("Chase
Equity") and the Company have  entered  into that  certain  Securities  Purchase
Agreement,  dated February 1, 2000 (the "Securities Purchase Agreement").  It is
contemplated  that HMTF  Europe  will  assign  its rights  under the  Securities
Purchase  Agreement to HMTF Bridge  Viatel,  LLC, HMEU Viatel I-EQ  Coinvestors,
LLC, HMEU Viatel I-SBS Coinvestors,  LLC, HM Viatel PG Europe,  LLC, HMEU Viatel
Qualified   Fund,  LLC  and  HMEU  Viatel  Private  Fund,  LLC  (each,  a  "HMTF
Purchaser").

      C. Pursuant to the Securities Purchase  Agreement,  the Company has agreed
to issue and sell,  and HMTF Europe and Chase  Equity  have agreed to  purchase,
shares of Series B Preferred  Stock and Series C Preferred Stock and Warrants to
purchase shares of Common Stock.

      D. Pursuant to Section 27 of the Rights Agreement,  the Board of Directors
of the Company has determined that the amendment to the Rights Agreement, as set
forth herein,  is necessary and  desirable to reflect the  Transactions  and the
Company and the Rights Agent desire to evidence such amendment in writing.

      E. Terms used but not defined  herein  have the  meaning  ascribed to such
terms in the Rights  Agreement  or, if not defined  therein,  in the  Securities
Purchase Agreement.

      NOW, THEREFORE, the parties agree as follows:

1.    AMENDMENT OF SECTION 1(A).  Section 1(a) of the Rights Agreement is hereby
      amended to add the following  clause  immediately  after the end of clause
      (iii) of Section 1(a) and immediately prior to the penultimate sentence of
      Section 1(a):

                  "; (iv)  notwithstanding  anything  contained  in this  Rights
            Agreement  (other  than the  following  clauses (v) and (vi) of this
            Section 1(a)) to the contrary,  no HMTF  Purchaser nor any Affiliate
            thereof,  and no Chase Purchaser nor any Affiliate  thereof,  shall,
            for purposes of this Rights Agreement, be deemed to Beneficially Own
            any  Common  Shares  by reason of its  Beneficial  Ownership  of any
            securities  acquired,  directly or indirectly,  upon consummation of
            the  Transactions  (including,  without  limitation,  the  Series  B
            Preferred  Stock,  the Series C Stock,  the Conversion  Shares,  the

<PAGE>

            Warrants,   the  Warrant  Shares  or  any  Common  Shares  or  other
            securities that may be received as a result of dividends or payments
            on, or the exercise of preemptive rights with respect to, the Series
            B Preferred Stock, the Series C Stock,  Warrant Shares or Conversion
            Shares; the foregoing securities are referred to collectively herein
            as the "Excluded Shares"); (v) notwithstanding anything contained in
            the Rights Agreement to the contrary,  (A) no HMTF Purchaser nor any
            Affiliate thereof shall be deemed to be an "ACQUIRING PERSON" unless
            and  until  the  Common  Shares   Beneficially  Owned  by  all  HMTF
            Purchasers  and their  Affiliates  exceed 7.5% of the Common  Shares
            then outstanding  (and, for purposes of any calculation with respect
            thereto,  the Excluded Shares (whether owned by an HMTF Purchaser or
            an Affiliate  or by a Chase  Purchaser  or an  Affiliate)  shall not
            otherwise be deemed to be Beneficially Owned for purposes hereof and
            thus shall not be included in any such calculation  unless and until
            the Common  Shares  Beneficially  Owned by all HMTF  Purchasers  and
            their  Affiliates  (other than the Excluded  Shares) exceeds 7.5% of
            the Common  Shares  then  outstanding,  at which  time all  Excluded
            Shares shall be deemed Beneficially Owned by such HMTF Purchaser and
            each of its Affiliates) and (B) no Chase Purchaser nor any Affiliate
            thereof shall be deemed to be an "ACQUIRING PERSON" unless and until
            the Common Shares  Beneficially  Owned by all Chase  Purchasers  and
            their  Affiliates  exceed 7.5% of the Common Shares then outstanding
            (and,  for purposes of any  calculation  with respect  thereto,  the
            Excluded  Shares (whether owned by an HMTF Purchaser or an Affiliate
            or by a Chase  Purchaser  or an  Affiliate)  shall not  otherwise be
            deemed to be  Beneficially  Owned for purposes hereof and thus shall
            not be included in any such calculation  unless and until the Common
            Shares   Beneficially  Owned  by  all  Chase  Purchasers  and  their
            Affiliates  (other  than the  Excluded  Shares)  exceed  7.5% of the
            Common Shares then  outstanding,  at which time all Excluded  Shares
            shall be deemed  Beneficially Owned by such Chase Purchaser and each
            of its Affiliates);  or (vi)  notwithstanding  anything contained in
            the Rights  Agreement to the  contrary,  no Purchaser nor any of its
            Affiliates shall be deemed to be an "ACQUIRING  PERSON" if it or its
            Affiliates or both shall acquire more than 7.5% of the Common Shares
            (other than the  Excluded  Shares) and it shall have  divested  such
            number of Common  Shares as shall be  required so that the number of
            Common  Shares   Beneficially   Owned  by  such  Purchaser  and  its
            Affiliates  (other than the Excluded  Shares) after giving effect to
            such  divestiture  is less  than  7.5%  of the  Common  Shares  then
            outstanding  within ten  business  days  following  delivery  of any
            written notice from the Company requesting such divestiture."

2.    AMENDMENT OF SECTION 1(C).  Section 1(c) of the Rights Agreement is hereby
      amended by inserting the following sentence at the end thereof.

                  "Notwithstanding  anything  contained in this Rights Agreement
            to the contrary,  the HMTF Purchasers and their  Affiliates,  on the
            one hand,  and the Chase  Purchasers  and their  Affiliates,  on the
            other  hand,  shall not  together be deemed to  constitute  a single
            person or group for any  purpose  hereunder  solely by reason of the
            Equity  Documents  and  the  Transactions,  their  ownership  of the
            Securities  (including  the  Warrants)  or any of  their  activities

                                       2
<PAGE>

            related thereto only, and the Common Shares  "BENEFICIALLY OWNED" by
            the HMTF Purchasers and their  Affiliates,  on the one hand, and the
            Chase Purchasers and their Affiliates,  on the other hand, shall not
            together be aggregated for any purpose hereunder solely by reason of
            the  Equity  Documents  and the  Transactions  or  their  activities
            related  thereto  (including,   without   limitation,   transactions
            involving the Excluded  Shares and any activities  pursuant to which
            the HMTF  Purchasers,  the Chase  Purchasers  and  their  respective
            Affiliates  vote  together  as a class on any  matter  or  otherwise
            cooperate in carrying out the Transactions)."

3.    ADDITION OF SECTION 1 (AA)(1). Section 1(aa)(1) shall be inserted into the
      Rights Agreement as follows:

                  "Securities  Purchase  Agreement"  shall  mean the  Securities
            Purchase  Agreement,  dated as of February 1, 2000, by and among the
            Company and each of the purchasers listed on Schedule I thereto."

4.    AMENDMENT  OF SECTION  27.  Section 27 of the Rights  Agreement  is hereby
      amended by inserting the following sentence at the end thereof.

                  "The  Company  shall not amend this Rights  Agreement in a way
            which would  materially  adversely  affect the rights granted to any
            HMTF  Purchaser or any Chase  Purchaser  or any of their  respective
            Affiliates  under the  terms of the  Amendment  to Rights  Agreement
            dated as of February 1, 2000,  unless such  amendment is approved in
            writing  by  such  HMTF  Purchaser,  such  Chase  Purchaser  or such
            Affiliate, as the case may be."

5.    ADDITION  OF  SECTION  35.  Section 35 shall be  inserted  into the Rights
      Agreement as follows:

                  "Section 35. CERTAIN  CAPITALIZED  TERMS.  All terms which are
            capitalized  and used herein (which are not  otherwise  specifically
            defined  herein)  and which are defined in the  Securities  Purchase
            Agreement  shall be used in the Rights  Agreement  as defined in the
            Securities Purchase Agreement."

6.    No Distribution  Date or Share Acquisition Date shall occur as a result of
      the Equity Documents and the Transactions.

7.    GOVERNING LAW. This Amendment shall be governed by, interpreted under, and
      construed in accordance with the laws of the State of New York, regardless
      of the laws that might  otherwise  govern under  applicable  principles of
      conflicts of law.

8.    COUNTERPARTS.  This Amendment may executed in counterparts,  each of which
      shall be  deemed  an  original,  but all of  which  taken  together  shall
      constitute one and the same instrument.

9.    THIRD-PARTY  BENEFICIARIES.  Each HMTF Purchaser, each Chase Purchaser and
      each of their respective  Affiliates shall be third party beneficiaries of
      this Amendment to the extent specifically set forth herein.

                                       3
<PAGE>

10.   TERMINATION.  This Amendment shall automatically terminate and be null and
      void upon  termination of the Securities  Purchase  Agreement  pursuant to
      Section 8.4(a) thereof.

                     [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

                                       4
<PAGE>

            IN WITNESS  WHEREOF,  the parties have executed this Amendment as of
the date first set forth above.

VIATEL, INC.

BY:   /s/ James P. Prenetta
   --------------------------------------------
      Name:  James P. Prenetta, Jr.
      Title: Vice President and General Counsel

THE BANK OF NEW YORK

BY:    /s/ Diane Ajjan
   --------------------------------------------
      Name:    Diane Ajjan
      Title:   Vice President

               [SIGNATURE PAGE FOR AMENDMENT TO RIGHTS AGREEMENT]

                                      5*The redacted portions of this contract have been omitted pending the outcome of
a  confidential  treatment  request  filed  with  the  Securities  and  Exchange
Commission.*

                            FIBER PURCHASE AGREEMENT

      THIS FIBER PURCHASE  AGREEMENT (the  "Agreement') is made and entered into
as of the 11th day of April 2000 (the "Effective  Date"), by and between LEVEL 3
LANDING STATION INC., a corporation organized and existing under the laws of the
State of  Delaware,  LEVEL 3 (BERMUDA)  LIMITED,  a  corporation  organized  and
existing  under the laws of  Bermuda,  and  LEVEL 3  COMMUNICATIONS  LIMITED,  a
corporation  organized  and  existing  under the laws of England,  (collectively
"Level 3"), and VIATEL,  INC., a corporation  organized  and existing  under the
laws of the State of Delaware ("Viatel").

                                    RECITALS

      WHEREAS,  Level  3  has  entered  into  certain  agreements  (the  "System
Agreements")   whereby   Level  3  owns  or  will  own  certain   Trans-Atlantic
telecommunications fiber on the Yellow submarine cable system between USA and UK
(the "Yellow System").

      WHEREAS,    Viatel    desires    to   acquire    certain    Trans-Atlantic
telecommunications fiber.

      NOW,  THEREFORE,  the  parties  hereto,  in  consideration  of the  mutual
covenants contained herein, covenant and agree with each other as follows:

1.    DEFINITIONS.  Capitalized  terms  used  herein  shall  have the  following
      meanings:

      A. "ACII" shall mean Atlantic  Crossing Ltd., a corporation  organized and
existing under the laws of Bermuda, and its successors and assigns.

      B. "AO&M Payments" shall have the meaning set forth in Section 4.

      C. "AO&M Plan" shall have the meaning set forth in Section 4.

      D. "Capacity" shall mean the Gbps of telecommunications capacity available
on the Purchased Fibers from time to time.

      E.  "Capacity  and Dark  Fiber IRU  Agreement"  shall  mean  that  certain
Capacity and Dark Fiber IRU Purchase  Agreement entered into between Level 3 and
Viatel simultaneously herewith.

      F.  "Colocation  Agreement" shall mean that certain  Colocation  Agreement
entered into between Level 3 and Viatel simultaneously herewith.

      G. "Dollars" or "$" shall mean United States dollars.

      H. "Indigo Project" shall have the meaning set forth in Section 13.

      I. "First  Upgrade"  shall mean the addition of 80 Gbps of Capacity to the
Purchased Fiber, bringing the total Capacity of the Purchased Fiber to 160 Gbps.

      J.  "Payment Due Date" shall mean the due date for  payments  hereunder by
Viatel.

                                       1
<PAGE>

      K. "Permits" shall have the meaning set forth in Section 9.

      L. "Purchase Price" shall mean the amount payable by Viatel to Level 3 for
the Purchased Fiber and Upgrades, all as set forth in this Agreement.

      M.  "Purchased  Fiber" shall mean two (2) lit fibers on the Yellow System,
initially equipped to 80 Gbps,  connecting Bellport,  Long Island, New York, USA
and Bude, Cornwall, UK.

      N.  "RFS  Date"  shall  mean the date on which all of the  following  have
occurred:

          1)        the Purchased Fiber has been accepted by Level 3 pursuant to
                    Section 2.D.;

          2)        the Backhaul  Fibers,  AC-I Capacity and Interlink  Capacity
                    (as such terms are  defined in the  Capacity  and Dark Fiber
                    IRU  Agreement)  have  been  completed  and are  ready to be
                    provided to Viatel; and

          3)        the   Colocation   Space  (as  defined  in  the   Colocation
                    Agreement) has been completed and is ready to be provided to
                    Viatel.

      O.  "Second Upgrade" shall mean the addition of 160 Gbps of Capacity to
the Purchased  Fiber,  bringing the total Capacity of the Purchased Fiber to 320
Gbps.

      P.  "Supplier"  shall refer to any party which has contracted with Level 3
or its affiliates to supply, construct, install, manage, operate or maintain the
Yellow System.

      Q.  "System  Agreements"  shall have the meaning set forth in the Recitals
hereto.

      R. "Taxes" shall have the meaning set forth in Section 3.F.

      S. "Technical  Specifications" shall refer to the technical specifications
for the Yellow System attached hereto as Exhibit "B".

      T. "Upgrades" shall mean the First Upgrade and the Second Upgrade.

      U. "Useful Life" shall mean the economic  useful life of the Yellow System
as determined in accordance with Section 8.

      V. "Yellow System" shall have the meaning set forth in the Recitals hereto
and as further generally described on Exhibit "A" attached hereto.

2.    PURCHASED FIBER AND UPGRADES.

      A.  Purchased  Fiber.  Viatel  hereby agrees to purchase from Level 3, and
Level 3 hereby agrees to sell to Viatel,  the Purchased  Fiber, on the terms and
conditions set forth herein.  Title to the Purchased  Fiber shall pass to Viatel
upon full and complete  payment of the portion of the Purchase Price relating to
the Purchased  Fiber (i.e.,  excluding the portion of the Purchase Price due for
the First Upgrade and Second Upgrade).

                                       2
<PAGE>

      B.  Upgrades.  Level 3 hereby agrees to perform,  and Viatel agrees to pay
Level 3 for,  the First  Upgrade  and,  if Level 3 elects to perform  the Second
Upgrade, the Second Upgrade, on the terms and conditions set forth herein.

      C.  Additional  Upgrades.  In the event Level 3 shall  determine  that the
Capacity of the Yellow System can be  increased,  and Level 3 elects to increase
such capacity, above 1.28 Tbps, Level 3 shall offer Viatel the right to purchase
additional  Capacity in like  proportion  to its  initial  interest in the total
Capacity of the Yellow System.  Such  additional  Capacity shall be offered on a
basis no less  favorable  than that offered by Level 3 to any other  participant
(cable station to cable station basis) in the Yellow System.

      D.  Acceptance.  The  Purchased  Fibers  shall be  accepted by Viatel when
accepted by Level 3 under and in accordance with the relevant  System  Agreement
between  Level 3 and Tyco  Submarine  Systems Ltd. (a Supplier to Level 3) dated
June 15, 1999. Viatel shall have the right to observe in all testing procedures,
results and analysis  respecting  the acceptance of the Yellow System as relates
to the Purchased Fibers and Capacity.  Level 3 shall accept the Purchased Fibers
from  the  Suppliers  when  such  testing  results  are in  accordance  with the
Technical Specifications.

3.    PAYMENT FOR PURCHASED FIBER AND UPGRADES.

      A. Purchase Price for Purchased Fibers.  The portion of the Purchase Price
payable by Viatel for the Purchased  Fiber shall be [REDACTED]  (less a pro-rata
portion of any liquidated damages Level 3 may receive from any Suppliers related
thereto).

      B. Purchase Price for Upgrades.  The portion of the Purchase Price payable
by Viatel for the Upgrades shall be:

          1)      [REDACTED]  for the First Upgrade (less a pro-rata  portion of
                  any liquidated  damages Level 3 may receive from any suppliers
                  related thereto).

          2)      [REDACTED] for the Second Upgrade (less a pro-rata  portion of
                  any liquidated  damages Level 3 may receive from any suppliers
                  related thereto).

      C. Payment Due Dates.  The Payment Due Dates for the Purchase  Price shall
be as follows:

<TABLE>
<S>                                <C>                          <C>
-------------------------------------------------------------------------------

Item                               Payment Due Date             Amount Due**
-------------------------------------------------------------------------------

Purchased Fiber 1st Installment    [REDACTED]                   [REDACTED]
-------------------------------------------------------------------------------

Purchased Fiber 2nd Installment    [REDACTED]                   [REDACTED]
-------------------------------------------------------------------------------

                                       3
<PAGE>

Purchased Fiber 3rd Installment    [REDACTED]                   [REDACTED]
-------------------------------------------------------------------------------

Purchased Fiber Final Installment  [REDACTED]                   [REDACTED]
-------------------------------------------------------------------------------

First Upgrade                      [REDACTED]                   [REDACTED]
-------------------------------------------------------------------------------

Second Upgrade                     [REDACTED]                   [REDACTED]
-------------------------------------------------------------------------------
</TABLE>

      [REDACTED]

      **Amount Due figures  comprise the costs of the Yellow  System  (including
      costs  incurred in the  design,  manufacture,  acquisition,  construction,
      installation and delivery) plus a management fee of [REDACTED].

      D. Payment.  Viatel shall,  on or before the respective  Payment Due Date,
pay to Level 3, in immediately  available  Dollars,  the portion of the Purchase
Price then due (provided, Level 3 shall give five (5) business days prior notice
of such  Payment Due Date to Viatel for any  Payment  Due Date not  specifically
ascertainable in the above schedule).

      E. Pricing Principles.  [REDACTED]

                                       4
<PAGE>

      F. Taxes.  All payments made by Viatel shall be made without any deduction
or  withholding  for or on account of any tax, duty or other charges of whatever
nature imposed by any taxing or governmental authority  (collectively  "Taxes").
If Viatel is or was required by law to make any  deduction or  withholding  from
any payment due hereunder to Level 3, or if Level 3 is required to pay any Taxes
(other than net income taxes) upon,  measured by, or reasonably  attributable to
the Purchase  Price or the cost or value of Purchased  Fiber or Capacity,  then,
notwithstanding  anything to the contrary contained in this Agreement, the gross
amount  payable by Viatel to Level 3 will be increased  so that,  after any such
deduction,  withholding  or other payment of Taxes,  the net amount  received by
Level 3 will not be less than Level 3 would have received had no such deduction,
withholding  or  other  payment  been  required.  If any  taxing  or  government
authority  asserts that Viatel should have made a deduction or  withholding,  or
Level 3 should  have made any  payment,  for or on  account  of any  Taxes  with
respect to all or a portion of any payment made hereunder,  Viatel hereby agrees
to  indemnify  Level 3 for such Taxes and hold Level 3 harmless on an  after-tax
basis from and against any Taxes,  interest or  penalties  levied or asserted in
connection therewith. Viatel shall not be responsible for any Taxes payable with
respect to any other portions of the Yellow System.

4.    ADMINISTRATION, OPERATION AND MAINTENANCE OF YELLOW SYSTEM.

      A. Plan.  Level 3 shall,  within ninety (90) days of the  Effective  Date,
establish  a plan  (the  "AO&M  Plan")  for the  administration,  operation  and
maintenance  of the Yellow System in accordance  with industry  standards and in
accordance with the standards set forth in the System Agreements.  The AO&M Plan
shall include those components described in Exhibit "C" attached hereto. Level 3
shall consult with, review and discuss the AO&M Plan with Viatel.  The AO&M Plan
shall be  subject  to the  approval  of  Viatel,  which  approval  shall  not be
unreasonably withheld or delayed.

      B.  Performance.  Level 3 shall perform or provide for the  performance of
the AO&M Plan.

          1)        Should  any  condition  exist in any  segment  of the Yellow
                    System that may impair the  integrity of the Yellow  System,
                    Level 3 shall initiate and coordinate planned maintenance on
                    such relevant segment, which may include the deactivation of
                    such  segment.  Level  3  shall,  to the  extent  reasonably
                    practicable  (and to the maximum extent  allowable under any
                    agreements respecting such action), advise Viatel in writing
                    prior to the initiation of a planned maintenance  operation,
                    of the timing,  scope and costs of such planned  maintenance
                    operation and shall use its  reasonable  efforts to minimize
                    any disruption of the Yellow System.

                                       5
<PAGE>

          2)        In the  event of  disruption  of  service  of the  Purchased
                    Fiber, Level 3 shall cause service to be restored as quickly
                    as reasonably possible, and Level 3 shall take such measures
                    as are reasonably necessary to obtain such objective.

          3)        Level 3 and Viatel  acknowledge that defects or deficiencies
                    in the Fibers or other  components  of the Yellow System may
                    occur from time to time,  whether  covered  by any  Supplier
                    warranty  or the  AO&M  Plan.  In such  event,  pending  the
                    resolution  of such defect or  deficiency,  the parties will
                    act in good faith to try to equitably equalize the impact of
                    such event on each of the parties.

          4)        Level 3 and  Viatel  shall  meet  periodically  at  mutually
                    agreeable   times  to  review  the  AO&M  Plan  and  related
                    procedures.

      C. AO&M Payments.  For  performance of the  administration,  operation and
maintenance  of the Yellow  System,  in addition to the Purchase  Price,  Viatel
shall pay to Level 3 "AO&M Payments" for the Useful Life of the Purchased Fiber.
The AO&M  Payments  shall be equal to a pro rata share of the costs  incurred by
Level 3 to  obtain  such  services,  whether  performed  by Level 3 with its own
employees or third parties, based on the ratio which the amount of Capacity then
available to Viatel bears to the total Capacity of Level 3 in the Yellow System,
plus  [REDACTED] of such costs,  for each year of the Useful Life,  adjusted for
any  partial  years.  Viatel's  pro  rata  share of costs  shall be  subject  to
adjustment in accordance with Section 8.

      D. Payment of AO&M Payments. The AO&M Payments shall be paid as such costs
are incurred by Level 3, net of any  reimbursements  payments credits or setoffs
which Level 3 may have received under any Supplier  warranty.  Viatel shall have
the right to audit the books and  records  of Level 3  reasonably  necessary  to
verify the costs on which the AO&M Payments are based.

      E. Certain Beneficial Rights.  Viatel  acknowledges that it is not a third
party  beneficiary of any agreement  entered into by Level 3 including,  but not
limited to, the System Agreements. Notwithstanding the foregoing, Level 3 agrees
to use  reasonable  good faith  efforts to provide  that Viatel shall be a third
party  beneficiary  of  the  contract  for  the  administration,  operation  and
maintenance of the marine portion of the Yellow System.

5.    INVOICES; DEFAULT INTEREST.

      A. Invoices.  Excluding  scheduled  payments of the Purchase Price for the
Purchased  Fiber,  Level 3 or its authorized  agent shall render  invoices under
this Agreement in Dollars, and Viatel shall pay such invoiced amounts in Dollars
within  [REDACTED] after invoice.  Level 3 shall endeavor to issue such invoices
at least  [REDACTED] in advance of each Payment Due Date.  Viatel shall make all
payments  by means of a wire  transfer to an account or  accounts  specified  by
Level 3.  Level 3 reserves  the right to direct,  in  writing,  that  payment be
apportioned  among the  entities  comprising  Level 3 as Level 3 directs,  or to
separate subsidiaries or affiliates of Level 3.

                                       6
<PAGE>

      B. Default  Interest.  Any amounts  payable under this Agreement which are
not paid within  fifteen (15) days of the Payment Due Date (within five (5) days
after notice given  pursuant to 3D) shall accrue  interest (from the Payment Due
Date) at an annual rate equal to [REDACTED] above the rate for U.S. dollar LIBOR
for one (1) month as published in The Wall Street  Journal on the first business
day of the month in which such payment is due. Such  interest  shall accrue from
the day  following  the date  payment  was due until it is paid in full.  In the
event that applicable law does not allow the imposition of "default interest" at
the rate  established  in  accordance  with  this  Section  5.B,  such  "default
interest"  shall be at the lower of the rate provided in this  subsection or the
highest rate permitted by applicable  law. For purposes of this Section,  "paid"
shall mean payment in funds that are  available  for  immediate  use by Level 3.
Viatel may avoid the incurrence of default  interest or a payment default in the
case of a bona fide  dispute by (i)  giving  written  notice of such  dispute to
Level 3 prior to the Payment Due Date (after  giving  effect to Section 3D), and
(ii) paying the  non-disputed  amount to Level 3 and retaining,  in a segregated
Viatel  account,  the disputed  amount.  Viatel  shall,  upon Level 3's request,
deliver  evidence of the retention of such sums in such account.  The resolution
of such  dispute  shall be  governed  by  Section  14. In the  event  Level 3 is
determined  to be  entitled  to all or any part of such  disputed  amount,  such
amount shall be paid by Viatel to Level 3 together with default interest thereon
from the original Payment Due Date.

6.    DEFAULT.

      A. Viatel Default.

         1)       If  Viatel  fails  to pay any  undisputed  installment  of the
                  Purchase  Price  relating  to the  Purchased  Fibers  when due
                  (after   giving  effect  to  Section  3D),  and  such  failure
                  continues for a period of [REDACTED] after written notice from
                  Level 3 to Viatel,  Level 3 shall have the option to terminate
                  this Agreement and all  previously  paid  installments  of the
                  Purchase Price relating to the Purchased  Fibers and any other
                  sums paid by Viatel  shall be  non-refundable  and the  Useful
                  Life  shall be  deemed  to have  ended,  In the  event of such
                  termination  of this  Agreement  by Level  3,  the  Colocation
                  Agreement  and  Capacity  and Dark Fiber IRU  Agreement  shall
                  automatically  terminate.  Notwithstanding  anything contained
                  herein to the contrary,  Viatel  acknowledges  and agrees that
                  this  Agreement  and  the  Useful  Life  shall   automatically
                  terminate  and expire upon the  occurrence  of certain  events
                  specified  in the  Colocation  Agreement  and the Capacity and
                  Dark Fiber IRU Agreement.

         2)       If  Viatel  fails  to pay any  undisputed  installment  of the
                  Purchase Price relating to the Upgrades when due (after giving
                  effect to Section 3D) and such failure  continues for a period
                  of  [REDACTED]  after  written  notice from Level 3 to Viatel,
                  Level 3 shall  have  the  option,  at its  discretion,  to (a)
                  exercise any and all rights and legal and equitable  remedies,
                  including  its rights and  remedies  to  specifically  enforce
                  Viatel's obligations to pay the Purchase Price relating to the
                  Upgrades, or (b) cause Viatel to transfer,  assign and/or make
                  available  to Level 3 during  the  remaining  Useful  Life the
                  additional Capacity provided by such Upgrade.

                                       7
<PAGE>

         3)       Except as set forth in subsection Al) and A2), if Viatel fails
                  to make a payment required by this Agreement,  or if Viatel is
                  otherwise in material  breach of this  Agreement,  and if such
                  payment  failure or other breach is not fully remedied  within
                  [REDACTED] of such  notification  (provided,  in the case of a
                  material  non-monetary breach, such [REDACTED] period shall be
                  extended if the nature of the remedy reasonably  requires more
                  than  [REDACTED] to complete as long as Viatel  commences such
                  remedy within the [REDACTED] period and thereafter  diligently
                  and in good faith pursues such remedy to completion),  Level 3
                  shall be  entitled  to pursue any and all rights and legal and
                  equitable  remedies  including  its  rights  and  remedies  to
                  specifically   enforce   Viatel's   obligations   under   this
                  Agreement.

      B. Level 3 Default.  If Level 3 is in material  breach of this  Agreement,
Viatel may notify  Level 3 in writing of such  breach and if such  breach is not
fully remedied within [REDACTED] of such notification,  Viatel shall be entitled
to  withhold  payment for any  obligations  owed to Level 3, and may offset such
payments  against  any  obligations  owed  by  Level  3 to  Viatel,  under  this
Agreement,  the  Capacity  and  Dark  Fiber  IRU  Agreement  and the  Colocation
Agreement,  and  pursue any and all  rights  and legal and  equitable  remedies,
including its rights and remedies to specifically  enforce Level 3's obligations
under this Agreement.

7.    USE OF THE PURCHASED FIBER.

      A.  Non-interference.  The  operation  of  the  Purchased  Fiber  and  any
equipment  associated  therewith  shall be such as not to  interrupt,  interfere
with, or impair service over any of the facilities comprising the Yellow System,
or impair privacy of any  communications  over such facilities,  cause damage to
plant or create  hazards to employees,  affiliates  or  connecting  companies of
Level 3, Viatel,  or any other user,  owner or operator of the Yellow  System or
the public.

      B. Availability for Testing and Maintenance.  The Purchased Fiber shall be
made  available  to Level 3 (or its  contractors),  at such times  agreeable  to
Viatel and Level 3, to permit Level 3 to conduct such tests and  adjustments  as
may be necessary for the Purchased  Fiber to be maintained in efficient  working
order.  Level 3 agrees to provide at least seven (7) days (or such longer period
as allowed under any agreements respecting such action) written notice to Viatel
prior to  conducting  scheduled  maintenance  tests or  adjustments  which might
affect  Viatel's use of the  Purchased  Fiber and to use  reasonable  efforts to
minimize disruption to the Yellow System.

      C. Cooperation.  In the event either party  experiences a degradation  or
significant  interruption in the performance of its fibers on the Yellow System,
the parties shall  cooperate to the extent  reasonable  possible to minimize the
impact of such occurrence.

      D. Name. Level 3 will specify a name for the Yellow System for purposes of
maintenance, mapping and legal identification. Viatel shall be bound by the name
so specified by Level 3 for the purposes of marketing or branding the  Purchased
Fibers and shall not refer to it by any other name.

                                       8
<PAGE>

      E. Status.  Level 3 shall keep Viatel apprised of the status of completion
of the Yellow System. Level 3 shall submit monthly, or as otherwise agreed upon,
progress  reports to Viatel  detailing the progress of  development/construction
scheduled dates and anticipated delivery or other delays and such other relevant
information  as Viatel may  reasonably  request.  If Level 3 believes there is a
possibility of delay in the delivery of the Yellow System,  Level 3 shall advise
Viatel of same and an explanation  of the reasons for such delay.  Following the
RFS Date,  Level 3 and Viatel  shall  continue to meet on agreed upon  regularly
scheduled dates for technical operation and review purposes.

8.    USEFUL LIFE.

      A. Determination.  The Yellow System shall be retired when it has reached
the end of its Useful Life. The  determination  of the end of the Useful Life of
the Yellow System shall be made by Viatel as follows:

         1)       In the event that Viatel shall  determine that the Useful Life
                  shall have  ended,  and Level 3 agrees,  then the Useful  Life
                  shall be deemed  ended and (a) Viatel  shall be deemed to have
                  abandoned the Purchased  Fiber and any and all of its interest
                  in the Yellow  System,  (b) Viatel shall have no further right
                  to utilize the Purchased  Fiber or any Capacity in any manner,
                  and (c) Viatel  shall be  relieved of its  obligation  to make
                  further AO&M Payments to Level 3.  Notwithstanding that Viatel
                  shall have no further right to utilize the Purchased  Fiber or
                  Capacity  under this  subsection  I),  Level 3 may not use the
                  Purchased  Fiber or  Capacity  without  the prior  consent  of
                  Viatel.

         2)       In the event that Viatel shall  determine that the Useful Life
                  shall have ended, but Level 3 shall disagree,  then the Useful
                  Life shall be deemed  ended and (a) Viatel  shall be deemed to
                  have  abandoned  the  Purchased  Fiber  and any and all of its
                  interest  in the  Yellow  System,  (b)  Viatel  shall  have no
                  further right to utilize the  Purchased  Fiber or any Capacity
                  in any  manner,  and  (c)  Viatel  shall  be  relieved  of its
                  obligation   to  make  further  AO&M   Payments  to  Level  3.
                  Notwithstanding  that  Viatel  shall have no further  right to
                  utilize the Purchased  Fiber or Capacity under this subsection
                  2),  Level  3 may  not use the  Purchased  Fiber  or  Capacity
                  without the prior consent of Viatel.

         3)       In the event Level 3 and ACII shall  determine that the Useful
                  Life shall have ended,  but Viatel  shall  disagree,  then the
                  Useful  Life  shall be deemed  to  continue  and until  Viatel
                  determines  that the Useful  Life has  ended,  (a) Level 3 and
                  ACII  shall have no  further  right to  utilize  any fibers or
                  capacity  on  the  Yellow  System,  (b)  Viatel  shall  assume
                  responsibility for all further  administration,  operation and
                  maintenance of the Yellow System and shall  indemnify and hold
                  harmless Level 3 and ACII from any cost or expense  associated
                  therewith,  (c)  Viatel  shall  be  relieved  of  any  further
                  obligation  to make further AO&M  Payments to Level 3, and (d)
                  Viatel shall lease from Level 3, and Viatel shall commence the
                  payment  to  Level 3 of fair  market  value  rent and pro rata
                  operating  expenses  (including  utilities)  associated  with,
                  those  portions  of the cable  landing  stations  included  as
                  components of the Yellow System.  Notwithstanding that Level 3
                  and ACII shall have no further  right to utilize any fibers or
                  capacity on the Yellow System under this subsection 3), Viatel
                  may not use those fibers or capacity  previously used by Level
                  3 and ACII without their prior consent.

                                       9
<PAGE>

         4)       In the event  Level 3 shall  determine  that the  Useful  Life
                  shall have ended, but Viatel and ACII shall disagree, then the
                  Useful Life shall be deemed to continue and Level 3 shall have
                  no further  right to utilize  any  fibers or  capacity  on the
                  Yellow System.  In such event,  Level 3 may, at its option and
                  with Viatel's approval,  elect to assign all of its rights and
                  interests in the Yellow System (exclusive of those portions of
                  the cable landing stations  included within the Yellow System)
                  to Viatel,  which assignment may be subject to the approval of
                  ACII. If Level 3 elects, and Viatel approves,  such option and
                  ACII  consents  to such  assignment,  then  (a)  Level 3 shall
                  assign all of its rights and  interests  in the Yellow  System
                  (exclusive  of those  portions of the cable  landing  stations
                  included within the Yellow System) to Viatel, (b) Viatel shall
                  assume all of Level 3's duties,  obligations  and  liabilities
                  with respect to the Yellow System (exclusive of those portions
                  of the cable landing  stations  included in the Yellow System)
                  and  indemnify  and  hold  harmless   Level  3  in  connection
                  therewith, and (c) Viatel shall lease from Level 3, and Viatel
                  shall  commence  the payment to Level 3 of fair  market  value
                  rent and pro rata  operating  expenses  (including  utilities)
                  associated  with, those portions of the cable landing stations
                  included as components of the Yellow System. If Level 3 elects
                  not to assign its rights and interests or, if so elected, ACII
                  shall  refuse to give its  consent  to such  assignment,  then
                  until  such time as either  Viatel  shall  determine  that the
                  Useful  Life has  ended  (in which  case  subsection  1) shall
                  apply) or ACII shall  determine that the Useful Life has ended
                  (in  which  case  subsection  3)  shall  apply),  (i) the AO&M
                  Payments  payable by Viatel shall be increased to reflect both
                  Viatel's  and Level 3's pro rata share of the AO&M costs,  and
                  (ii)  Viatel  shall  lease  from  Level  3, and  Viatel  shall
                  commence  the payment to Level 3 of fair market value rent and
                  pro rata operating expenses (including  utilities)  associated
                  with, those portions of the cable landing stations included as
                  components of the Yellow System.  Notwithstanding that Level 3
                  shall have no further  right to utilize any fibers or capacity
                  on the Yellow System under this  subsection 4), Viatel may not
                  use  those  fibers  or  capacity  previously  used by  Level 3
                  without the prior consent of Level 3.

         5)       Notwithstanding   anything  to  the   contrary   contained  in
                  subsections 3) and 4) above,  Viatel's lease of those portions
                  of the cable  landing  stations  included as components of the
                  Yellow System shall terminate and expire at (a) the end of the
                  Useful  Life of the Yellow  System,  as  determined  by Viatel
                  pursuant  to  the  above,   or  (b)  the   expiration  of  the

                                       10
<PAGE>

                  twenty-five  year useful life for which the Yellow  System was
                  initially designed by the Suppliers, whichever occurs first.

      B.  Decommissioning  Costs.   Notwithstanding  anything  to  the  contrary
contained herein,  the determination by either Viatel or Level 3 that the Useful
Life has ended shall not relieve such party from the obligation to pay, and such
party  shall  remain  liable  for the  payment  of,  its pro  rata  share of the
reasonable  costs of  decommissioning,  retrieval  and/or  recovery costs of the
Yellow  System which may be required by  applicable  laws,  prevailing  industry
standards,  or as mutually  agreed by the parties  (net of such party's pro rata
share  of  any  salvage  proceeds  received  in  connection  therewith),   which
obligation  and  liability  shall  survive any  termination  of this  Agreement;
provided,  and  notwithstanding  the  foregoing,  Viatel shall have no liability
under this Section 8B if this Agreement  terminates  pursuant to Sections l2D or
12E.

9.    APPROVALS; LICENSES.

      A.  Permits.  The  performance  of this  Agreement by each party hereto is
contingent  upon the  obtaining and  continuance  of such  approvals,  consents,
governmental  authorizations,  licenses  and permits (the  "Permits")  as may be
required or reasonably deemed necessary by such party for performance by a party
hereunder  and as may be  satisfactory  to it. Viatel shall be  responsible  for
obtaining or modifying any Permit necessary to authorize or allow Viatel to land
and/or operate the Purchased Fiber in the cable landing stations. Level 3 agrees
to cooperate  with any such  modification,  without cost to Level 3. Level 3 and
Viatel each covenant and agree to use commercially reasonable efforts to acquire
or otherwise obtain,  upon commercially  reasonable terms, all necessary Permits
on or before the RFS Date.

      B. Contingency. The performance of this Agreement by Level 3 is contingent
upon  obtaining,  and the  continuance  of,  such  Permits as may be required or
reasonably  deemed  necessary by Level 3 for  performance by all Suppliers.  The
parties  shall use  reasonable  efforts  to  obtain  and  continue,  and to have
continued,  such Permits. No license under patent is granted by Level 3 or shall
be implied or arise by estoppel in Viatel's favor with respect to any apparatus,
system or method  used by Viatel  in  connection  with the use of the  Purchased
Fiber sold hereunder.

10.    DISCLAIMER.

      A. No Warranties.  Level 3 has entered into the System Agreements to cause
the Yellow System to be placed into operation on the scheduled RFS Date. Neither
Level 3, nor any of its  subsidiaries,  warrants or guarantees that the RFS Date
for the Yellow  System  will occur,  nor that the  Upgrades  will occur.  VIATEL
ACKNOWLEDGES  AND AGREES THAT LEVEL 3 AND ITS  SUBSIDIARIES ARE NOT LIABLE FOR A
SUPPLIER'S FAILURE TO PERFORM; PROVIDED, THE FOREGOING SHALL NOT LIMIT OR IMPAIR
VIATEL'S  RIGHTS AND REMEDIES UNDER SECTIONS 3A, 3B, 4D, 10B AND 12D, AND UNLESS
SPECIFICALLY SET FORTH IN THIS AGREEMENT, ALL WARRANTIES,  EXPRESSED OR IMPLIED,
INCLUDING BUT NOT LIMITED TO, THE WARRANTIES OF MERCHANTABILITY  AND FITNESS FOR
A PARTICULAR PURPOSE ARE SPECIFICALLY DISCLAIMED. Nothing contained herein shall
limit or impair Viatel's acceptance rights under Section 2D above.

                                       11
<PAGE>

      B. Enforcement of Supplier  Obligations.  Level 3 shall diligently enforce
any  obligations  and  warranties  of  Suppliers,  and any  benefits or payments
received in respect thereof shall be shared proportionately with Viatel.

11.    LIMITATIONS OF LIABILITY.

      A. Damages. In no event shall Viatel or Level 3 be liable to the other for
consequential,  incidental,  indirect  or special  damages,  including,  but not
limited  to,  loss  of  revenue,  loss of  business  opportunity,  or the  costs
associated with the use of external restoration facilities,  including,  without
limitation,  for any loss or damage  sustained  by reason of any  failure  in or
breakdown  of the Yellow  System or the  facilities  associated  with the Yellow
System, whatever the cause and however long it shall last.

      B. Force  Majeure.  Neither  party hereto shall be liable to the other for
any delay,  loss or damage which may be suffered by reason of any  circumstances
beyond the  reasonable  control of, and not due to the fault or  negligence  of,
such party.

12.    CONSTRUCTION OF THE YELLOW SYSTEM.

      A. Suppliers.  Level 3 agrees that it shall not suspend the work under the
System  Agreements  without the approval of Viatel,  which approval shall not be
unreasonably  withheld.  Level 3 further  agrees  that it shall not  modify  any
System Agreement without the approval of Viatel (which shall not be unreasonably
withheld)  if the  effect of such  modification  would  result in a delay in the
delivery of the Yellow System beyond the date  referenced in Section 12D, change
the location of either cable landing station, or change the technical aspects of
the Yellow System.

      B. RFS Date.  Level 3 shall use  reasonable  efforts to cause the RFS Date
for the Purchased Fiber to occur no later than [REDACTED].

      C.  Upgrades.  Level 3 shall  use  reasonable  efforts  to cause the First
Upgrade to be completed by  [REDACTED].  The Second  Upgrade and any  subsequent
upgrades shall be initiated as and when Level 3 deems appropriate.

      D.  Termination  For Late Delivery.  In the event  Suppliers shall fail to
deliver the Yellow System to Level 3 in accordance with the System Agreements on
or before [REDACTED] (as extended by any events of force majeure as described in
the System Agreements) and the RFS Date has therefore not occurred,  then Viatel
shall have the right to terminate this Agreement  whereupon Level 3 shall refund
to Viatel  that  portion  of the  Purchase  Price  theretofore  paid by  Viatel,
together with a proportionate  share of any liquidated  damages Level 3 may have
received from any Suppliers.  Any  termination of this Agreement by Viatel under
this Section 12D shall also result in the automatic  termination of the Capacity
and Dark Fiber IRU  Agreement  and the  Colocation  Agreement  and in such event
Level 3 shall refund to Viatel that portion of the Purchase Price (as defined in
the  Capacity  and Dark Fiber IRU  Agreement)  and that  portion of the  License
Payment (as  defined in the  Colocation  Agreement)  which may have been paid by
Viatel to Level 3 thereunder prior to such termination.

                                       12
<PAGE>

      E. Termination For  Convenience.  In the event Level 3 shall terminate any
material System  Agreement "For  Convenience"  (to the extent  permitted by such
System  Agreement),  this Agreement  shall terminate and Level 3 shall refund to
Viatel that portion of the Purchase Price  theretofore paid by Viatel.  Any such
termination  by Level 3 shall also  terminate  the  Capacity  and Dark Fiber IRU
Agreement and the Colocation Agreement and in such event Level 3 shall refund to
Viatel that portion of the  Purchase  Price (as defined in the Capacity and Dark
Fiber IRU Agreement) and that portion of the License  Payment (as defined in the
Colocation  Agreement)  which may have been paid by Viatel to Level 3 thereunder
prior to such termination.

13.    [REDACTED]

14.    SETTLEMENT OF DISPUTES.

      A. Amicable  Resolution.  The parties shall endeavor to settle amicably by
mutual  discussions any disputes,  differences,  or claims whatsoever related to
this  Agreement.  In the event that any dispute cannot be resolved  through such
efforts,  then  either  party  shall have the right to  declare a  deadlock  (by
delivery of written notice to the other party) and thereby invoke the escalation
procedures set forth below. After delivery of a notice of deadlock,  the parties
shall,  within  fourteen  (14) days after  delivery of the notice,  escalate the
dispute in the following  manner:  first, to the senior vice president or senior
management personnel for each party's submarine network development/construction
group;  second, to the executive vice president or senior  management  personnel
within the office of and reporting  directly to the Chief Executive  Officers of
the public company parent of each party (the "Executive  Level");  and,  finally
(failing  resolution at either level  above),  to the Chief  Executive  Officers
("CEO") of the public  company  parent of each party.  Each party  agrees to use
reasonable  efforts  to make  necessary  management-level  personnel  reasonably
available for the timely  resolution of same,  and any potential  impacts on the
operation or construction of the Yellow System.

      B.  Remedies.  In  the  event  that  the  dispute  is not  resolved  after
presentation  to the CEOs of the  parties,  then either  party may  exercise any
remedy  legally  available.  The  parties  agree that any  action or  proceeding
relating  to this  Agreement  shall be held in the U.S.  District  Court for the
Southern  District of New York or state courts located in the State of New York.
The parties further agree that such courts shall have exclusive  jurisdiction in
any such action or proceeding.

15.   GOVERNING LAW.

      THIS AGREEMENT  SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE  WITH THE
LAWS OF THE STATE OF NEW YORK, UNITED STATES OF AMERICA.

                                       13
<PAGE>

16.   WAIVER OF IMMUNITY.

      The parties  hereto  acknowledge  that this  Agreement  is  commercial  in
nature,  and each party hereto  expressly  and  irrevocably  waives any claim or
right which it may have to immunity (whether sovereign immunity, act of state or
otherwise) for itself or with respect to any of its assets in connection with an
arbitration,  arbitral  award or other  proceeding  to enforce  this  Agreement,
including, without limitation, immunity from service of process, immunity of any
of it s assets from pre or post  judgement  attachment or execution and immunity
from the jurisdiction of any court or arbitral tribunal.

17.   EXPORT CONTROL.

      The parties hereto  acknowledge that to the extent any products,  software
or technical  information provided under this Agreement are or may be subject to
any applicable  export laws and regulations,  the parties hereto agree that they
will not use,  distribute,  transfer  or  transmit  the  products,  software  or
technical  information  (even if  incorporated  into other  products)  except in
compliance  with such export laws and  regulations (or licenses or orders issued
pursuant thereto). If requested by either party hereto the other party agrees to
sign all  necessary  export  related  documents  as may be  required  to  comply
therewith.

18.   REPRESENTATIONS; INDEMNITY.

      A. Level 3. Level 3 hereby represents and warrants to Viatel that (i) each
Level 3 entity is a corporation  duly  organized,  validly  existing and in good
standing under the laws of the  jurisdiction of its origin;  (ii) the execution,
delivery and  performance of this Agreement by Level 3 has been duly  authorized
by all necessary corporate action on the part of Level 3 and this Agreement is a
valid,  binding and enforceable  obligation of Level 3 enforceable in accordance
with its  terms;  and (iii) the  execution,  delivery  and  performance  of this
Agreement by Level 3 does not violate,  conflict with or constitute a breach of,
the  organizational  documents  or any order,  decree or  judgment of any court,
tribunal or governmental authority binding on Level 3.

      B.  Viatel.  Viatel  hereby  represents  and  warrants to Level 3 that (i)
Viatel is a corporation  duly organized,  validly  existing and in good standing
under the laws of its jurisdiction of organization; (ii) the execution, delivery
and  performance  of this  Agreement by Viatel has been duly  authorized  by all
necessary  corporate action on the part of Viatel and this Agreement is a valid,
binding and enforceable  obligation of Viatel enforceable in accordance with its
terms;  and (iii) the execution,  delivery and  performance of this Agreement by
Viatel  does  not  violate,  conflict  with  or  constitute  a  breach  of,  the
organizational documents or any order, decree or judgment of any court, tribunal
or governmental authority binding on Viatel.

      C. Governmental Requirements and Compliance.  Each party hereby represents
and  warrants  to the  other  party  that it has  obtained  or will  obtain  all
approvals, consents, governmental authorizations, licenses and permits as may be
required to enter into this Agreement, and sell or purchase, as the case may be,
the  Purchased  Fiber.  Each  party  covenants  and  agrees to  comply  with all
applicable laws, rules and regulations  respecting its execution and performance
of this Agreement, including the use and operation of its respective interest in
the Yellow System.

                                       14
<PAGE>

      D. Survival.  The  representations  and warranties in this Agreement shall
survive the execution and delivery of this Agreement.

      E. Violations by Viatel. Subject to the limitations of liability set forth
in this  Agreement,  Viatel agrees to indemnify  and hold  harmless  Level 3 and
their respective officers, directors, employees, agents and representatives from
and against any loss,  damage,  expense or cost arising out of or in  connection
with:  (i) any breach or violation by Viatel of applicable  law or  governmental
regulation  or  nonpayment  of taxes  payable by Viatel;  and (ii) any claims of
whatever  nature by third  parties  with  respect to the  services  provided  by
Viatel.

      F.  Violations  by Level 3. Subject to the  limitations  of liability  set
forth in this  Agreement,  Level 3 agrees to indemnify and hold harmless  Viatel
and its officers,  directors,  employees,  agents and  representatives  from and
against any loss, damage,  expense or cost arising out of or in connection with:
(i) any  breach  or  violation  by  Level 3 of  applicable  law or  governmental
regulation  or  nonpayment  of taxes  payable by Level 3; and (ii) any claims of
whatever nature by third parties with respect to the services  provided by Level
3.

19.   RELATIONSHIP OF THE PARTIES.

      This  Agreement  shall not form a joint venture or  partnership or similar
business  arrangement  between the parties hereto,  and nothing contained herein
shall be deemed to constitute a partnership or joint venture or similar business
arrangement.

20.   NO THIRD PARTY BENEFICIARIES.

      This  Agreement  does not  provide and is not  intended  to provide  third
parties  (including,  but not limited to,  customers of Viatel) with any remedy,
claim, liability, reimbursement, cause of action, or any other right.

21.   ASSIGNMENT.

      A.  Limitations.  This Agreement and all of the provisions hereof shall be
binding upon and inure to the benefit of the parties hereto and their respective
successors  and  permitted  assigns;   provided  that,  except  as  provided  in
paragraphs  B and C of  this  Section,  neither  this  Agreement  nor any of the
rights,  interests or obligations  hereunder  shall be assigned,  transferred or
otherwise  disposed of or delegated  by either  party  hereto  without the prior
written  consent of the other party,  which  consent  shall not be  unreasonably
withheld.

      B.  Permitted  Assignments.  Each party  shall be  permitted,  without the
consent of the other party, to assign,  transfer or otherwise  dispose of any or
all of their  rights  hereunder  and  delegate  any or all of their  obligations
hereunder to any present or future affiliated entity of the transferring  party,
or to an entity  controlled by, under the same control as, or  controlling,  the
transferring  party, or to an entity  purchasing all or substantially all of the
assets of such party, or to an entity into which the  transferring  party may be
merged or  consolidated.  The  transferring  party shall give the other  parties
hereto notice of any such assignment,  transfer or other disposition or any such
delegation.  No such transfer by a party shall  release or discharge  such party
from its duties and obligations hereunder.

                                       15
<PAGE>

      C. Permitted  Transferees.  Nothing contained herein shall prohibit either
party  from  leasing,  licensing,  or  otherwise  granting  rights  in fibers or
capacity to third  parties,  provided  no such lease,  license or other grant of
rights  shall  release  or  discharge  a party  from its  duties or  obligations
thereof.

      D. Breach.  Any assignment,  transfer or disposition of this Agreement not
in compliance with this Agreement shall be a material breach hereof.

22.   NOTICES.

      A. Service.  Whenever  under the  provisions of this Agreement it shall be
necessary  or  desirable  for one party to serve any  notice,  request,  demand,
report or other communication on another party, the same shall be in writing and
shall be  served  (i)  personally;  (ii) by  independent,  reputable,  overnight
commercial   carrier;   or  (iii)  by  facsimile   transmission  (A)  where  the
transmitting  party includes a cover sheet  identifying  the name,  location and
identity of the transmitting party, the phone number of transmitting device, the
date of transmission  and the number of pages  transmitted  (including the cover
page),   (B)  where  the   transmitting   device  or  receiving  device  records
verification  of receipt and the date and time of  transmission  receipt and the
phone number of the other device,  and (C) where the facsimile  transmission  is
immediately  followed  by service of the  original  of the  subject  item in the
manner provided in clause (i), or (ii) hereof; addressed as follows:

          1)      If to Level 3:
                  Level 3 International, Inc.
                  66 Prescot Street
                  London El 8HG
                  England
                  Attn:  Legal Department
                  Fax No. 44-171-864-0391

                  With a copy to:
                  Level 3 International, Inc.
                  1025 Eldorado Blvd.
                  Broomfield, Colorado 80021
                  Attn:  General Counsel
                  Fax No.  720-888-5127

          2)      If to Viatel:
                  Viatel, Inc.
                  685 Third Avenue
                  New York, New York 10017
                  Attn: General Counsel
                  Fax No.  212-350-9245

      B. Change/Delivery. Any party may, from time to time, by notice in writing
served upon the other  party as  aforesaid,  designate  an  additional  and/or a
different mailing address or an additional and/or a different person to whom all

                                       16
<PAGE>

such notices, requests, demands, reports and communications are thereafter to be
addressed.  Any notice,  request,  demand,  report or other communication served
personally  shall be deemed  delivered upon receipt,  if received by independent
courier  shall  be  deemed  delivered  on the  date of  receipt  as shown by the
addressee's  registry  or  certification  receipt or on the date  receipt at the
appropriate  address,  as shown on the records or  manifest  of the  independent
courier,  and if served by facsimile  transmission  shall be deemed delivered on
the date of receipt as shown on the received facsimile (provided the original is
thereafter delivered as aforesaid).

22.   WAIVER.

      A.  Non-waiver.  No waiver by any party of any right or remedy  under this
Agreement  shall be deemed to be a waiver  of any other or  subsequent  right or
remedy  under this  Agreement.  The consent by one party to any act by the other
party  requiring  such  consent  shall not be deemed to render  unnecessary  the
obtaining  of  consent to any  subsequent  act for which  consent  is  required,
regardless of whether similar to the act for which consent is given.

      B. Writing. No waiver of any term, covenant or condition of this Agreement
shall be valid unless in writing and signed by the obligee party.

      C.  Limited.  The  acceptance of any payment or  reimbursement  by a party
shall not waive any  preceding or  then-existing  breach or default by the other
party of any term, covenant or condition of this Agreement, other than the other
party's prior failure to pay the particular  amount or part thereof so accepted,
regardless  of the paid  party's  knowledge of such  preceding or  then-existing
breach or default at the time of acceptance of such payment or reimbursement.

24.   SEVERABILITY.

      If any  provision of this  Agreement is found by an arbitral,  judicial or
regulatory  authority  having  jurisdiction  to be void or  unenforceable,  such
provision  shall be deemed to be deleted from this  Agreement  and the remaining
provisions shall continue in full force and effect.

25.   HEADINGS.

      The Section  headings of this  Agreement are for  convenience of reference
only and are not intended to restrict, affect or influence the interpretation or
construction of provisions of such Section.

26.   COUNTERPARTS.

      This  Agreement  may be  executed  in  counterparts,  each of  which  when
executed and  delivered  shall be deemed an original.  Such  counterparts  shall
together (as well as separately) constitute one and the same instrument.

27.   ENTIRE AGREEMENT.

      This Agreement  together with all attachments  hereto supersedes all prior
oral or written  understandings  between the parties hereto and  constitutes the

                                       17
<PAGE>

entire agreement with respect to the subject matter herein. This Agreement shall
not  be  modified  or  amended   except  by  a  writing   signed  by  authorized
representatives of the parties hereto.

28.   PUBLICITY AND CONFIDENTIALITY.

      The parties agree to be bound be the terms of a  Non-Disclosure  Agreement
between their  respective  affiliates  dated 17th November  1999, the continuing
efficacy of which,  its terms being  unmodified  herein,  is hereby ratified and
confirmed by the parties.

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

                                       LEVEL 3 LANDING STATION INC.

                                       By /s/ Thomas C. Stortz
                                          --------------------
                                          Name:  Thomas C. Stortz
                                          Title: Vice President and Secretary

                                       LEVEL 3 COMMUNICATIONS LIMITED

                                       By /s/ Thomas C. Stortz
                                          --------------------
                                          Name:  Thomas C. Stortz
                                          Title: Director

                                       LEVEL 3 (BERMUDA) LIMITED

                                       By /s/ Thomas C. Stortz
                                          --------------------
                                          Name:  Thomas C. Stortz
                                          Title: Vice President

                                       VIATEL, INC.

                                       By /s/ Michael J. Mahoney
                                          ----------------------
                                          Name:  Michael J. Mahoney
                                          Title: Chief Executive Officer

Exhibits
A - General System Description
------------------------------
B - Technical Specifications
----------------------------
C - AO&M Plan Components
------------------------

                                       18
<PAGE>

                                  EXHIBIT "A"

                               SYSTEM DESCRIPTION

                                   [REDACTED]

<PAGE>

                                  EXHIBIT "B"

                            TECHNICAL SPECIFICATIONS

                                   [REDACTED]

<PAGE>

                                  EXHIBIT "C"

              OPERATIONS, ADMINISTRATION & MAINTENANCE COMPONENTS

                                   [REDACTED]

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