Document:

THE SECURITIES REPRESENTED BY THIS NOTE AND THE PREFERRED STOCK ISSUABLE THEREBY
HAVE  NOT  BEEN  REGISTERED  UNDER  THE  SECURITIES ACT OF 1933, AS AMENDED (THE
"SECURITIES ACT"), OR ANY OTHER APPLICABLE SECURITIES LAWS AND, ACCORDINGLY, THE
     ----------
SECURITIES  REPRESENTED  BY  THIS  NOTE  MAY NOT BE RESOLD, PLEDGED OR OTHERWISE
TRANSFERRED, EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER, OR IN
A  TRANSACTION  EXEMPT  FROM  REGISTRATION  UNDER,  THE  SECURITIES  ACT  AND IN
ACCORDANCE  WITH  ANY  OTHER  APPLICABLE  SECURITIES  LAWS.

                          TELSCAPE INTERNATIONAL, INC.
                FIRST REPLACEMENT 12% CONVERTIBLE PROMISSORY NOTE

$10,000,000.00                  Houston,  Texas               February  7,  2000

     Telscape  International,  Inc.,  a  Texas  corporation (the "Company"), for
                                                                  -------
value  received,  hereby  promises  to pay to the order of Pointe Communications
Corporation,  a  Nevada  corporation  ("Holder"), the principal sum of up to Ten
                                        ------
Million  and  No/100  Dollars  ($10,000,000.00)  or  so  much  thereof as may be
advanced as provided herein, together with interest on the outstanding amount of
such  principal  sum,  payable  in  accordance  with  the terms set forth below.

ARTICLE  1
             DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

     1.1     Definitions.  For  all  purposes  of this Note, except as otherwise
             -----------
expressly  provided  or  unless  the  context  otherwise  requires:

     (1)     the  terms  defined  in  this Article have the meanings assigned to
             them in this  Article  and  include  the  plural  as  well  as  the
             singular;

     (2)     all accounting terms not otherwise defined herein have the meanings
             assigned  to them in accordance with generally accepted accounting
             principles as promulgated from time to time by the Association of
             Independent Certified Public Accountants;  and

     (3)     the  words  "herein,"  "hereof"  and "hereunder" and other words of
                          ------     ------        ---------
             similar  import refer to this Note  as  a  whole  and  not  to  any
             particular Article, Section,  or  other  subdivision.

     "Business  Day" means each Monday, Tuesday, Wednesday, Thursday, and Friday
      -------------
that  is  not  a  day  on  which  banking  institutions  in  Houston, Texas, are
authorized  or  obligated  by  law  or  executive  order  to  be  closed.

<PAGE>
     "Class  C  Preferred  Stock" means shares of the Class C Convertible Senior
      --------------------------
Preferred  Stock,  par  value  $0.001  per share, of the Company, with rights in
accordance  with the Certificate of Designation attached to the Merger Agreement
as  Exhibit  A.
    ----------

     "Common  Stock" means the common stock of the Company, par value $0.001 per
      -------------
share.

     "Escrow  Agreement"  means that certain Escrow Agreement dated December 31,
      -----------------
1999, as amended from time to time, by and among the Company, Holder and Gardere
&  Wynne, L.L.P. ("Escrow Agent"), pursuant to which the unfunded portion of the
                   ------------
proceed  of  this  Note  are  being  held  in  escrow  by  Escrow  Agent.

     "Event  of  Default"  has  the  meaning  specified  in  Section  3.1.
      ------------------                                     ------------

     "First  Note"  means  that certain Promissory Note dated November 24, 1999,
      -----------
issued  by the Company to Holder in the original principal amount of $1,500,000,
as  modified  by  that  certain  Modification  Agreement dated January 10, 2000,
increasing  the  principal  amount  to  $2,500,000.

     "Maturity  Date,"  when  used with respect to this Note means June 30, 2000
      --------------
(or  such  earlier  date  upon  which this Note is due and payable under Section
                                                                         -------
3.3).
----

     "Merger  Agreement"  means  that certain Agreement and Plan of Merger dated
      -----------------
December  31,  1999,  by  and among the Company, Holder, and Pointe Acquisition,
Corp.,  as  amended  from  time  to  time.

     "Note"  means  this  First  Replacement 12% Convertible Promissory Note, as
      ----
hereafter  amended,  modified,  substituted,  or  replaced.

     "Person"  means  any  individual,  corporation,  entity,  limited liability
      ------
partnership  or  company,  partnership,  joint venture, association, joint stock
company,  trust,  unincorporated  organization,  or  government or any agency or
political  subdivision  thereof.

     "Registration  Rights  Agreement"  means  that  certain Registration Rights
      -------------------------------
Agreement  attached  to  the  Merger  Agreement  as  Exhibit  C.
                                                     ----------

     "Second  Note"  means  that  certain  12% Convertible Promissory Note dated
December  31,  1999,  issued  by the Company to Holder in the original principal
amount  of  $10,000,000.

     "Warrant  Agreement"  means  that certain Warrant Agreement attached to the
      ------------------
Merger  Agreement  as  Exhibit  D.
                       ----------
 .
     "Warrants"  means  warrants  of the Company issuable upon conversion of the
      --------
Note  pursuant  to  Section  4.1  and  evidenced  by  the  Warrant  Agreement.
                    ------------

<PAGE>
ARTICLE  2
                         BALANCE, ADVANCES AND PAYMENTS

     2.1     Replacement  Note.  This  Note  is  given  in  full  payment  and
             -----------------
replacement  of the First Note and the Second Note having an aggregate principal
balance  of  $2,500,000  and  accrued  and  unpaid  interest  of  $46,500.

     2.2     Balance.  The  sum  of  $2,546,500  has  been  advanced  to pay the
             -------
outstanding  principal  and  interest due on the First Note and the Second Note.
An  additional $3,200,000 is being disbursed simultaneously upon the issuance of
this Note.  The unfunded principal sum of this Note is $4,253,500 as of the date
hereof.

     2.3     Advances.  Holder  agrees  to  advance in installments from time to
             --------
time  the  unfunded  portion of the principal sum of this Note upon receipt from
the  Company  of a written request for funds itemizing the use of such requested
funds  in  a manner satisfactory to Holder.  If Holder approves such request for
funds,  Holder  shall provide Escrow Agent with written instructions authorizing
the  disbursement  of  the  requested  funds to the Company.  Escrow Agent shall
disburse  such  requested  funds to the Company within three Business Days after
receipt  of  such  instructions.  The  Company will not use any proceeds of this
Note  for purposes other than those approved by Holder in the request for funds.
In  the  event  of  termination  of  the  Merger  Agreement, Holder will have no
obligation  to  advance  further  sums  to the Company, even if a portion of the
principal  remains  unfunded.

     2.4     Interest.  From  the  date  of this Note through the Maturity Date,
             --------
interest  shall accrue hereunder on the unpaid outstanding principal sum of this
Note  at  12%  per  annum,  calculated on the basis of a 365 day year.  Interest
shall be fully cumulative and shall be payable in kind (by issuance of shares of
stock)  upon  the  Conversion  of  the  Note  as  set  forth  in  Article  IV.
                                                                  -----------

     2.5     Payment  of  Principal and Interest.  The principal and accrued and
             -----------------------------------
unpaid  interest  of  this Note shall be due and payable in full on the Maturity
Date.

     2.6     No  Prepayments.  Subject  to  Holder's  right  to  convert  or the
             ---------------
Company's  right  to  require  the Holder to convert, the Company may not prepay
this  Note  in  whole  or  in  part.

     2.7     Manner of Payment.  Payments of principal and interest on this Note
             -----------------
will be made by delivery of Company checks to Holder at its address as set forth
in  this  Note or by wire transfers pursuant to instructions from Holder. If the
date  upon  which  the  payment  of principal or interest is required to be made
pursuant  to this Note occurs other than on a Business Day, then such payment of
principal  and  interest shall be due and payable and made on, and shall include
unpaid  interest accrued through, the next occurring Business Day following such
payment  date.

                                     Page 3
<PAGE>
ARTICLE  3
                                    REMEDIES

     3.1     Events  of Default.  An "Event of Default" shall be deemed to exist
             ------------------       ----------------
if  the  following  occurs  and  is  continuing:

     (1)     the Company defaults in the payment of the principal or interest on
this  Note  when  such  principal  or  interest becomes due and payable and such
default  remains uncured for a period of five Business Days after written notice
thereof  has  been  provided  to  the  Company;  or

     (1)     the Company defaults in the performance of any covenant made by the
Company  in  this  Note  (other  than  as set forth in Section 3.1(a)), and such
                                                       --------------
default  remains  uncured  for a period of thirty (30) days after written notice
thereof  has  been  provided  to  the  Company;  or

     (2)     a  court of competent jurisdiction enters (i) a decree or order for
relief  in respect of the Company in an involuntary case or proceeding under any
applicable  federal  or  state  bankruptcy,  insolvency, reorganization or other
similar  law  or  (ii)  a  decree  or  order adjudging the Company a bankrupt or
insolvent,  or  approving  as  properly filed a petition seeking reorganization,
arrangement,  adjustment,  or  composition of or in respect of the Company under
any  applicable  federal  or  state  law,  or  appointing a custodian, receiver,
liquidator,  assignee,  trustee,  sequestrator, or other similar official of the
Company  or  of  any substantial part of the property of the Company or ordering
the  winding up or liquidation of the affairs of the Company and any such decree
or  order  of  relief  or  any such other decree or order remains unstayed for a
period  of  ninety  (90)  days  from  its  date  of  entry;  or

     (4)     the  Company  commences  a  voluntary  case or proceeding under any
applicable  federal  or  state  bankruptcy, insolvency, reorganization, or other
similar  law  or  any  other  case or proceeding to be adjudicated a bankrupt or
insolvent,  or  the  Company  files  a  petition,  answer  or  consent  seeking
reorganization  or  relief  under  any  applicable  federal or state law, or the
Company  makes  an assignment for the benefit of creditors, or admits in writing
its  inability  to  pay  its  debts  generally  as  they  become  due;  or

     (3)     if  the  Merger  Agreement  is  terminated by either the Company or
Holder  for any reason other than pursuant to Section 11.3(f) or (h) thereof and
the  Company  does  not repay this Note within thirty (30) days after demand for
payment  is  made  by  the  Holder.

     3.2     Past  Due  Rate.  Upon the occurrence and during the continuance of
             ---------------
an  Event  of  Default  described  in  Section 3.1(a), interest shall thereafter
                                       --------------
accrue  on  all such past due amounts at the rate of 14% per annum calculated on
the  basis  of  a  365  day  year.

     3.3     Acceleration  of  Maturity.  Upon  the  occurrence  and  during the
             --------------------------
continuance of an Event of Default, the entire principal balance and accrued but
unpaid  interest  thereof shall, at the option of Holder, upon written notice to
the  Company,  at  once  become  due  and  payable.

                                     Page 4
<PAGE>
ARTICLE  4
                               CONVERSION OF NOTE

     4.1     Conversion  Privilege and Conversion Price.    At the option of the
             ------------------------------------------
Holder,  this  Note shall be convertible at any time  into (i) 100,000 shares of
Class  C  Preferred Stock and (ii) 500,000 Warrants (plus such additional shares
equal to the accrued and unpaid interest on the Note), or the proportionate part
thereof  represented  by  the then outstanding principal amount of the Note as a
percentage  of  $10,000,000.

     4.2     Effect of Conversion.  Upon any conversion pursuant to this Article
             --------------------                                        -------
IV, this Note shall thereupon cease to be an obligation of the Company and shall
--
only represent the right to receive the Class C Preferred Stock and Warrants for
all  amounts  unpaid  on  the  Note.

     4.3     Mechanics  of  Conversion.  In order for the Holder of this Note to
convert  the  Note  into Class C Preferred Stock and Warrants, such Holder shall
give  the  Company  written  notice that such Holder elects to convert the Note.
The  date  of  receipt  of  such  notice by the Company shall be the "Conversion
                                                                      ----------
Date".  The  Company  shall, as soon as practicable after receipt of such notice
and  no  later  that  10  days  thereafter,  issue  and  deliver to the Holder a
certificate  for  the  number of shares of Class C Preferred Stock to which such
Holder  shall  be  entitled  as  aforesaid,  together  with  a  duly  executed
Registration  Rights  Agreement  and  Warrant  Agreement,  and  Warrants for the
appropriate  number  of  shares of Common Stock of the Company.  Such conversion
shall  be deemed to have been made immediately prior to close of business on the
Conversion  Date, and the Holder shall be regarded for all corporate purposes as
the  holder  of  the number of shares of Class C Preferred Stock and Warrants to
which  it  is  entitled  upon  the  Conversion  Date.

ARTICLE  5
                         ADJUSTMENT OF CONVERSION SHARES

     5.1     Stock  Dividends,  Stock Splits and Reverse Splits.  If the Company
             --------------------------------------------------
shall  at  any  time (a) subdivide its outstanding shares of Common Stock into a
greater  number  of  shares  or  (b)  declare  a  dividend  or  make  any  other
distribution  upon  any shares of the Company, payable in Common Stock, then the
number  of  shares  of  Class  C  Preferred  Stock  and  Warrants  shall  be
proportionately  increased.  If  the outstanding shares of Common Stock shall at
any  time  be combined into a smaller number of shares, the number of shares  of
Class  C  Preferred  Stock  and  Warrants  shall  be  proportionately  reduced.

     5.2     Reorganizations  and  Asset Sales. If any capital reorganization or
             ---------------------------------
reclassification  of  the  capital  stock  of the Company, or any consolidation,
merger,  or  share  exchange  of  the  Company with another Person, or the sale,
transfer,  or  other  disposition  of  all or substantially all of its assets to
another Person shall be effected in such a way that holders of Class C Preferred
Stock  and  Warrants  shall  be entitled to receive capital stock, securities or
assets  in  exchange  for  their shares of Class C Preferred Stock and Warrants,
then,  if  this  Note  shall  not  have  been  converted  into shares of Class C
Preferred  Stock  and  Warrants  prior  to  any  such transaction, the following
provisions  shall  apply:

     (1)     As  a  condition  of  such  reorganization,  reclassification,
consolidation,  merger,  share  exchange,  sale, transfer, or other disposition,
lawful  and  adequate  provisions  shall be made whereby the holder of this Note
shall  thereafter  have  the  right  to  purchase and receive upon the terms and
conditions  specified  in  this  Note  and  in  lieu  of  the shares immediately
theretofore  receivable upon the exercise of the rights represented hereby, such
shares  of capital stock, securities, or assets as may be issued or payable with
respect  to  or  in  exchange for a number of outstanding shares of such Class C
Preferred  Stock and Warrants equal to the number of shares of Class C Preferred
Stock  and  Warrants  immediately  theretofore  so  receivable  had  such
reorganization, reclassification, consolidation, merger, share exchange, or sale
not  taken  place, and in any such case appropriate provision shall be made with
respect  to  the  rights  and  interests  of  such  holder  to  the end that the
provisions  hereof (including, without limitation, provisions for adjustments of
the  number  of  shares  receivable  upon  the  exercise)  shall  thereafter  be
applicable,  as  nearly as possible, in relation to any shares of capital stock,
securities,  or  assets  thereafter  deliverable upon the exercise of this Note.

                                     Page 5
<PAGE>
     (1)     In  the  event of a merger, share exchange, or consolidation of the
Company  with  or into another Person as a result of which a number of shares of
Class C Preferred stock and Warrants or their equivalent of the successor Person
greater  or  lesser  than  the  number  of shares of Class C Preferred Stock and
Warrants  outstanding  immediately  prior  to  such  merger,  share  exchange or
consolidation  are  issuable  to  holders  of  Class C Preferred Stock, then the
number of shares of Class C Preferred Stock and Warrants into which this Note is
convertible  in  effect  immediately  prior  to  such  merger, share exchange or
consolidation  shall  be  adjusted  in  the  same  manner as though there were a
subdivision  or combination of the outstanding shares of Class C Preferred Stock
and  Warrants.

     5.3     De  Minimis  Adjustments.  No adjustment in the number of shares of
             ------------------------
Class  C  Preferred  Stock  and Warrants purchasable hereunder shall be required
unless  such  adjustment  would  require an increase or decrease of at least one
share  of  Class  C  Preferred  Stock  purchasable  upon conversion of the Note;
provided,  however, that any adjustments which by reason of this Section 5.3 are
     ---   -------                                               -----------
not  required  to be made shall be carried forward and taken into account in any
subsequent  adjustment.  All  calculations  shall  be  made  to the nearest full
share,  as applicable.  No fractional shares of Class C Preferred Stock or scrip
shall  be  issued  upon  conversion.

     5.4     Notice  of  Adjustment.  Whenever  the  number of shares of Class C
             ----------------------
Preferred  Stock and Warrants issuable upon the conversion of this Note shall be
adjusted  as herein provided, or the rights of the holder hereof shall change by
reason  of other events specified herein, the Company shall compute the adjusted
number  of shares of Class C Preferred Stock and Warrants in accordance with the
provisions  hereof  and  shall  prepare a certificate setting forth the adjusted
number of shares of Class C Preferred Stock and Warrants or specifying the other
shares  of stock, securities, or assets receivable as a result of such change in
rights,  and  showing in reasonable detail the facts and calculations upon which
such  adjustments  or  other  changes  are  based. The Company shall cause to be
mailed  to the Holder copies of such certificate, together with a notice stating
that  the  number  of  shares  of  Class C Preferred Stock and Warrants has been
adjusted,  and  setting forth the adjusted number of shares of Class C Preferred
Stock  and Warrants or other securities or assets purchasable upon conversion of
this  Note.

                                     Page 6
<PAGE>
     5.5     Notifications  to  Holder.  If  at  any  time the Company proposes:
             -------------------------

     (1)     to  declare  any  dividend  upon Class C Preferred Stock payable in
             capital  stock  to  the  holders  of  Class  C  Preferred  Stock;

     (2)     to  offer  for  subscription  pro rata to all of the holders of its
             Class  C  Preferred Stock any additional shares of capital stock of
             any class or other  rights;

     (3)     to  effect  any  capital reorganization, or reclassification of the
             capital stock of the Company, or consolidation,  merger,  or  share
             exchange of the Company  with another Person, or sale, transfer, or
             other disposition of all or substantially  all  of  its  assets; or

     (4)     to  effect  a voluntary or involuntary dissolution, liquidation, or
             winding  up  of  the  Company;

then,  in any one or more of such cases, the Company shall, if known at the time
of such notice, give Holder (i) written notice of the date on which the books of
the  Company  shall  close  or  a  record  shall  be  taken  for  such dividend,
distribution,  or  subscription  rights  or  for  determining  rights to vote in
respect  of  any such issuance, reorganization, reclassification, consolidation,
merger,  share  exchange, sale, transfer, disposition, dissolution, liquidation,
or  winding  up,  and  (ii)  in  the  case of any such issuance, reorganization,
reclassification,  consolidation,  merger,  share  exchange,  sale,  transfer,
disposition, dissolution, liquidation, or winding up, written notice of the date
when  the  same  shall take place.  Such notice in accordance with the foregoing
clause shall also, if known at the time of such notice, (i) specify, in the case
of  any  such  dividend, distribution, or subscription rights, the date on which
the  holders  of  Class  C  Preferred  Stock shall be entitled thereto, and such
notice  in  accordance  with the foregoing clause (ii) specify the date on which
the holders of Class C Preferred Stock shall be entitled to exchange their Class
C  Preferred  Stock  for  securities  or  other  property  deliverable upon such
reorganization,  reclassification,  consolidation, merger, share exchange, sale,
transfer,  disposition, dissolution, liquidation, or winding up, as the case may
be.

ARTICLE  6
                                  MISCELLANEOUS

     6.1     Collection;  Fees.  If  this  Note  is  placed  in  the hands of an
             -----------------
attorney for collection, and if it is collected through any legal proceedings at
law or in equity or in bankruptcy, receivership, or other court proceedings, the
Company hereby undertakes to pay all costs and expenses of collection including,
but  not  limited  to, court costs and the reasonable attorneys' fees of Holder.

     6.2     Benefits  of  Note. Nothing in this Note, express or implied, shall
             ------------------
give  to  any  Person,  other  than the Company, Holder and their successors any
benefit  or any legal or equitable right, remedy or claim under or in respect of
this  Note.

     6.3     Successors  and  Assigns. All covenants and agreements in this Note
             ------------------------
contained  by or on behalf of the Company and Holder shall bind and inure to the
benefit  of  the  respective successors and permitted assigns of the Company and
Holder.

                                     Page 7
<PAGE>
     6.4     Restrictions  on Transfer. Notwithstanding anything to the contrary
             -------------------------
contained  herein, neither this Note, nor the rights of Holder hereunder, may be
transferred,  assigned  or  pledged  by  Holder  other  than pursuant to written
agreement  between  the  Company  and  Holder.

     6.5     Notice;  Address  of  Parties.  All  notices,  requests,  consents,
             -----------------------------
directions, and other instruments and communications required or permitted to be
given  under this Agreement shall be in writing and shall be deemed to have been
duly  given if delivered personally, if sent by third party courier or overnight
delivery  service,  if  mailed  first-class,  postage  prepaid,  registered  or
certified  mail, or if sent by telecopy, telecommunication or other similar form
of  communication  (with  receipt  confirmed),  as  follows:

(1)     If  to  the  Company,  addressed  to  it  as  follows:

                    Telscape  International,  Inc.
                    2700  Post  Oak  Boulevard
                    Suite  100
                    Houston,  Texas
                    Attn:  Todd  M.  Binet
                    Facsimile:(713)  968-0930

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

                    Swidler  Berlin  Shereff  Friedman,  LLP
                    3000  K  St.,  NW
                    Suite  300
                    Washington,  D.C.  20007
                    Attn:  John  J.  Klusaritz
                    Facsimile:  (202)  424-7647

(2)     If  to  Holder,  addressed  to  it  as  follows:

                    Pointe  Communications  Corporation
                    1325  Northmeadow  Parkway,  Suite  110
                    Roswell,  Georgia  30076
                    Attn:  Patrick  E.  Delaney
                    Facsimile:  (770)  319-2834

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

                    Gardere  &  Wynne,  L.L.P.
                    1601  Elm  Street,  Suite  3000
                    Dallas,  Texas  75201
                    Attn:  W.  Robert  Dyer,  Jr.,  Esq.
                    Facsimile:  (214)  999-3574

or  such other address as the Company or Holder hereto shall specify pursuant to
this  Section  6.5  from  time  to  time.
      ------------

     6.6     Severability  Clause.  In  case any provision in this Note shall be
             --------------------
invalid,  illegal, or unenforceable in any jurisdiction, the validity, legality,
and enforceability of the remaining provisions in such jurisdiction shall not in
any  way  be  affected or impaired thereby; provided, however, such construction
                                            --------  -------
does  not  destroy  the  essence  of  the  bargain  provided  for  hereunder.

                                     Page 8
<PAGE>
     6.7     Governing  Law.  This  Note  shall be governed by, and construed in
             --------------
accordance  with,  the  internal  laws  of the State of Texas (without regard to
principles  of  choice  of  law).

     6.8     Usury.  It  is  the  intention  of  the  parties  hereto to conform
             -----
strictly  to  the applicable laws of the State of Texas and the United States of
America,  and  judicial  or  administrative  interpretations  or  determinations
thereof  regarding  the  contracting for, charging and receiving of interest for
the  use,  forbearance,  and detention of money (hereinafter referred to in this
Section  6.8  as  "Applicable  Law").  Holder  shall  have no right to claim, to
------------       ---------------
charge, or to receive any interest in excess of the maximum rate of interest, if
any,  permitted  to  be  charged  on  that  portion  of  the amount representing
principal  which  is outstanding and unpaid from time to time by Applicable Law.
Determination  of  the  rate  of interest for the purpose of determining whether
this  Note  is  usurious  under  Applicable  Law  shall  be  made by amortizing,
prorating,  allocating,  and  spreading  in equal parts during the period of the
actual  time  of  this  Note,  all  interest or other sums deemed to be interest
(hereinafter  referred  to  in  this  Section  6.8  as  "Interest")  at any time
                                      ------------       --------
contracted  for,  charged,  or received from the Company in connection with this
Note.  Any Interest contracted for, charged or received in excess of the maximum
rate  allowed by Applicable Law shall be deemed a result of a mathematical error
and a mistake.  If this Note is paid in part prior to the end of the full stated
term  of  this Note and the Interest received for the actual period of existence
of  this  Note  exceeds the maximum rate allowed by Applicable Law, Holder shall
credit  the amount of the excess against any amount owing under this Note or, if
this  Note  has  been  paid  in  full,  or  if  it has been accelerated prior to
maturity,  Holder  shall  refund  to  the Company the amount of such excess, and
shall  not  be  subject  to  any of the penalties provided by Applicable Law for
contracting  for,  charging, or receiving Interest in excess of the maximum rate
allowed  by  Applicable Law.  Any such excess which is unpaid shall be canceled.

     6.9     Stock Legends.  Certificates for shares of Class C Preferred Stock,
             -------------
Warrants  or other securities issued upon conversion of this Note shall bear the
following  legend:

     THE  SECURITIES  REPRESENTED  BY  THIS  CERTIFICATE  WERE  NOT  ISSUED IN A
     TRANSACTION  REGISTERED  UNDER  THE  SECURITIES  ACT  OF  1933,  AS AMENDED
     ("SECURITIES  ACT"),  OR  ANY  APPLICABLE  STATE  SECURITIES  LAWS.  THE
     SECURITIES REPRESENTED HEREBY HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT
     BE  SOLD  OR  TRANSFERRED  UNLESS  SUCH  SALE  OR TRANSFER IS COVERED BY AN
     EFFECTIVE  REGISTRATION  STATEMENT  UNDER THE SECURITIES ACT AND APPLICABLE
     STATE  SECURITIES LAWS OR, IN THE WRITTEN OPINION OF COUNSEL TO THE ISSUER,
     IS  EXEMPT  FROM  THE  REGISTRATION  REQUIREMENTS OF THE SECURITIES ACT AND
     SUCH  LAWS.

                                     Page 9
<PAGE>
     IN  WITNESS  WHEREOF,  the  Company  has  caused this instrument to be duly
executed  on  the  date  first  above  written.

                         TELSCAPE  INTERNATIONAL,  INC.,
                         a  Texas  corporation

                         By:
                              Todd  M.  Binet,  President

                                    Page 10
<PAGE>CERTIFICATE OF DESIGNATION OF
                          TELSCAPE INTERNATIONAL, INC.

     Telscape  International,  Inc. (the "Corporation"), a corporation organized
and  existing  under  the laws of the State of Texas, certifies that pursuant to
the  authority  contained  in  Article  IV  of its Articles of Incorporation, as
amended  (the "Articles of Incorporation") and in accordance with the provisions
of Article 2.13 of the Texas Business Corporation Act (the "TBCA"), the Board of
Directors  of  the  Corporation  (the  "Board  of  Directors")  has  adopted the
following  resolution  which  resolution remains in full force and effect on the
date  hereof.

     RESOLVED,  that  pursuant to the authority vested in the Board of Directors
by  the Articles of Incorporation, the Board of Directors does hereby designate,
create,  authorize  and  provide  for the issuance of Class C Convertible Senior
Preferred  Stock  (the  "Class  C  Preferred Stock"), par value $0.001 per share
consisting  of 200,000 shares, no shares of which have heretofore been issued by
the  Corporation,  having the following voting powers, preferences and relative,
participating,  optional  and  other  special  rights,  and  qualifications,
limitations  and  restrictions  thereof  as  follows:

     Section  1.     Dividends.
                     ---------

          (1)     Priority  of Dividends.  No dividends shall be declared or set
                  ----------------------
aside  for  the  Common  Stock or any other class or series of the Corporation's
capital  stock  that  ranks junior to the Class C Preferred Stock (collectively,
the "Junior Stock") unless prior thereto all accumulated and unpaid dividends on
the  Class  C Preferred Stock shall be declared, set aside and paid.  So long as
any  Class  C  Preferred  Stock  remains  outstanding, without the prior written
consent  of  the  holders  of  a  sixty-six  and two-thirds percent (66 2/3%) (a
"Supermajority")  of  the  outstanding  shares  of  Class C Preferred Stock, the
Corporation  shall  not, nor shall it permit any of its subsidiaries to, redeem,
purchase or otherwise acquire directly or indirectly any Junior Stock, nor shall
the  Corporation  directly or indirectly pay or declare any dividend or make any
distribution  upon  any  Junior  Stock,  if  at the time of any such redemption,
purchase,  acquisition,  dividend  or distribution the Corporation has failed to
pay  the  full  amount  of  all  accumulated and unpaid dividends on the Class C
Preferred  Stock  or  the  Corporation  has failed to make any redemption of the
Class  C  Preferred  Stock  required  hereunder.

          (2)     If  the Board of Directors determines to pay dividends due and
payable  pursuant to this Section 1 in cash, and in the event that funds legally
available  for  distribution  of such dividends on any Dividend Payment Date (as
defined  in  paragraph  (c) of this Section 1) are insufficient to fully pay the
cash  dividend  due  and payable on such Dividend Payment Date to all holders of
outstanding  Class  C  Preferred  Stock,  then  all  funds legally available for
distribution  shall  be  paid  in  cash to holders of Class C Preferred Stock in
accordance  with  the  number  of shares of Class C Preferred Stock held by each
such  holder.  Any  remaining  dividend  amount  owed  to holders of the Class C
Preferred  Stock  shall  be  accrued  in  accordance  with paragraph (c) of this
Section  1.  The  holders  of  the  Class  C  Preferred  Stock shall have senior
preference and priority to the dividends of the Corporation on any Junior Stock.

<PAGE>
          (3)     Stock  Dividend  Rate; Dividend Payment Dates.  Each holder of
                  ---------------------------------------------
Class C Preferred Stock shall be entitled to receive when and as declared by the
Board,  out  of  funds  legally  available  therefor,  cumulative  dividends, in
preference  and  priority  to  dividends  on any Junior Stock, that shall accrue
daily,  and  compound  annually, on each share of the Class C Preferred Stock at
the  rate  of twelve percent (12%) per annum on the sum of the Liquidation Price
(as defined) thereof plus all accumulated and unpaid dividends thereon, from and
including  the  date  on  which such stock was first issued (the "Original Issue
Date")  to  and including the date on which such share ceases to be outstanding.
The  accrued  dividends  will  be appropriately adjusted for stock splits, stock
dividends,  combinations,  recapitalizations,  reclassifications,  mergers,
consolidations  and  other  similar events (each, a "Recapitalization Event" and
collectively,  "Recapitalization Events") which affect the number of outstanding
shares  of  the  Class  C  Preferred  Stock.  Accrued  dividends  on the Class C
Preferred  Stock  shall  be  payable  out  of  funds  legally available therefor
quarterly  on March 31, June 30, September 30 and December 31 of each year (each
a  "Dividend  Payment  Date"), to the holders of record of the Class C Preferred
Stock as of the close of business on the applicable record date.  Such dividends
shall accrue whether or not they have been declared and whether or not there are
profits,  surplus  or  other  funds of the Corporation legally available for the
payment  of  dividends,  and  such dividends shall be fully cumulative and shall
accrue  on a daily basis based on a 365-day or 366-day year, as the case may be,
without  regard  to the occurrence of a Dividend Payment Date and whether or not
such  dividends have been declared and whether or not there are any unrestricted
funds  of  the  Corporation legally available for the payment of dividends.  The
amount  of  dividends  "accrued"  with respect to any share of Class C Preferred
Stock as of the first Dividend Payment Date after the Original Issue Date, or as
of  any  other date after the Original Issue Date that is not a Dividend Payment
Date, shall be calculated on the basis of the actual number of days elapsed from
and including the Original Issue Date, in the case of the first Dividend Payment
Date  and any date of determination prior to the first Dividend Payment Date, or
from  and including the last preceding Dividend Payment Date, in the case of any
other  date  of determination, to and including such date of determination which
is  to be made, in each case based on a year of 365 or 366 days, as the case may
be.  Whenever the Board declares any dividend pursuant to this Section 1, notice
of  the  applicable record date and related Dividend Payment Date shall be given
in  accordance  with  Section  4(k)  hereof.

          (4)     Pro  Rata Declaration and Payment of Dividends.  All dividends
                  ----------------------------------------------
paid  with  respect  to  shares  of the Class C Preferred Stock pursuant to this
Section  1  shall be declared and paid pro rata to all the holders of the shares
                                       --- ----
of  Class  C  Preferred  Stock  outstanding  as  of  the applicable record date.

                                      -2-
<PAGE>
          (5)     Payment  of Dividends with Additional Shares.  Notwithstanding
                  --------------------------------------------
any  other  provision  of  this  Section  1,  in  the  sole  discretion  of  the
Corporation's  Board  of  Directors,  any  dividends  accruing  on  the  Class C
Preferred  Stock  may  be  paid in lieu of cash dividends by the issuance on the
applicable  Dividend  Payment  Date,  ratably  among  the  holders  of  Class  C
Preferred,  of  that  number  of  additional  shares  of Class C Preferred Stock
(including fractional shares) ("Additional Shares") in an aggregate number equal
to  (i)  the  aggregate  amount  of  the dividend to be paid divided by (ii) the
Stated  Value then existing as of such applicable Dividend Payment Date.  If and
when any Additional Shares are issued under this Section 1(e) for the payment of
accrued  dividends,  such Additional Shares shall be deemed to be validly issued
and  outstanding  and  fully-paid  and  nonassessable.

     Section  2.     Liquidation,  Dissolution  or  Winding  Up.
                     ------------------------------------------

          (1)     In  the  event  of  any  voluntary or involuntary liquidation,
dissolution  or  winding  up of the Corporation, any merger as a result of which
the  stockholders  of the Corporation do not have a majority of the voting power
of the stockholders of the surviving entity, or consolidation of the Corporation
with  another entity (whether or not the Corporation is the surviving entity) or
the  sale of substantially all of its assets (each such event, a "Liquidation"),
except  as provided in paragraph (b) of this Section 2, the holders of shares of
Class  C  Preferred  Stock  then  outstanding  shall  be  entitled,  ratably  in
proportion  to  the  number  of  shares  of Class C Preferred Stock held by such
holders,  to  be  paid  out  of  the  assets  of  the  Corporation available for
distribution  to  its stockholders before payment to the holders of Junior Stock
by  reason  of  their ownership thereof, an amount equal to $100.00 per share of
Class  C  Preferred  Stock  (subject  to  appropriate  adjustment  for  any
Recapitalization  Events)  (the  "Stated  Value"),  plus  an amount equal to all
accumulated  and unpaid dividends on such share of Class C Preferred Stock since
the  Original Issue Date thereof as of such time of determination (collectively,
the  "Liquidation  Price"  per share).  Upon such payment, the Class C Preferred
Stock  will  be  retired.

          (2)     If  upon  any  such  Liquidation  the  remaining assets of the
Corporation available for distribution to its shareholders shall be insufficient
to pay the holders of shares of Class C Preferred Stock the full amount to which
they  shall  be  entitled,  then  the  entire assets of the Corporation shall be
distributed  among  the holders of shares of Class C Preferred Stock, ratably in
proportion  to  the  full  amount  to  which  such  holders  are  entitled.

          (3)     After  the  payment of all preferential amounts required to be
paid  to the holders of Class C Preferred Stock, upon a Liquidation, the holders
of  shares of the Junior Stock then outstanding shall be entitled to receive the
remaining  assets and funds of the Corporation available for distribution to its
shareholders.

          (4)     In  the  event  of  a distribution pursuant to this Section 2,
such  distribution  shall be paid in cash or in the event and to the extent that
cash  is  not  available  for distribution, in securities or property.  Whenever
such  distribution shall be in securities or property other than cash, the value
of such securities or property other than cash shall be the fair market value of
such  securities  or  other  property as determined by the Board of Directors in
good  faith.

     Section  3.     Voting  Rights.
                     --------------

                                      -3-
<PAGE>
          (1)     Each  holder  of  shares  of  Class C Preferred Stock shall be
entitled  to  votes  equal  in the aggregate to the number of votes to which the
number  of  whole  shares  of  Common  Stock  into  which such shares of Class C
Preferred  Stock  held  by  such  holder  are  convertible would be entitled (as
adjusted from time to time pursuant to Section 4 hereof), at each meeting of the
shareholders  of  the  Corporation  (and  for  purposes  of  written  actions of
shareholders  in lieu of meetings) with respect to any and all matters presented
to  the  shareholders  of the Corporation for their action or consideration, and
shall  be entitled to notice of any shareholders' meeting in accordance with the
Bylaws  of  the Corporation.  Except as otherwise provided herein or required by
law, holders of shares of Class C Preferred Stock shall vote with the holders of
shares  of Common Stock and any other class of stock of the Corporation entitled
to vote and not as a separate class.  Holders of shares of the Class C Preferred
Stock  shall  have  the  right to vote as a class on all matters requiring their
vote or approval under, and in the manner set forth in, the TBCA and as provided
herein.  Except  as  otherwise  provided herein, any class vote pursuant to this
Section  3  or  required  by  law  shall  be  determined  by  the  holders  of a
Supermajority  of the shares of capital stock of such class voting as a class as
of  the  applicable  record  date.

          (2)     For  so  long  as any shares of Class C Preferred Stock remain
outstanding,  the  Corporation  shall  not  amend,  alter or repeal or otherwise
change  any provision of these Articles of Incorporation, as amended (whether by
merger,  consolidation  or  otherwise), the resolutions of its Board authorizing
and  designating the Class C Preferred Stock, or the preferences, special rights
or  other  powers  of  the Class C Preferred Stock, in each case so as to affect
adversely  any  of  the rights, powers, preferences or privileges of the Class C
Preferred  Stock, without the written consent or affirmative vote of the holders
of  at least a Supermajority of the then outstanding shares of Class C Preferred
Stock,  given  in  writing or by vote at a meeting, consenting or voting (as the
case  may  be) separately as a class, in person or by proxy.   For this purpose,
without  limiting  the  generality  of  the  foregoing, amendments, alterations,
repeals or other changes to any provision of these Articles of Incorporation, as
amended  (whether  by  merger, consolidation or otherwise), considered to affect
adversely  any  of  the rights, powers, preferences or privileges of the Class C
Preferred  Stock  shall  include,  but  are  not  limited  to: (i) the creation,
authorization,  issuance, or increase in the authorized amount of, any preferred
stock  (except  for increases in the authorized amount of and issuance of shares
of  Class  C Preferred Stock solely for the purpose of paying dividends pursuant
to  Section  1(e) hereof) or any other class or series of any equity securities,
or  any  warrants,  options or other rights convertible or exchangeable into any
class or series of any equity securities of the Corporation, having a preference
or  priority  over  or ranking pari passu with the Class C Preferred Stock as to
                               ---- -----
the  right to receive dividends or amounts distributable upon Liquidation of the
Corporation;  (ii) those that reduce the dividend rates on the Class C Preferred
Stock  or  cancel  accumulated and unpaid dividends; (iii) those that change the
relative  seniority  rights  of the holders of the Class C Preferred Stock as to
the  payment  of dividends in relation to the holders of any other capital stock
of  the Corporation; or (iv) those that reduce the amount payable to the holders
of the Class C Preferred Stock upon a Liquidation or change the seniority of the
liquidation  preferences  of the holders of the Class C Preferred Stock relative
to  the  rights  upon a Liquidation of the holders of any other capital stock of
the  Corporation.

                                      -4-
<PAGE>
     Section  4.     Conversion  at  the  Option  of  a  Holder.
                     ------------------------------------------

     The  holders of the Class C Preferred Stock shall have conversion rights as
follows  (the  "Conversion  Rights"):

          (1)     Right to Convert.  Each share of Class C Preferred Stock shall
                  ----------------
be  convertible  at  the  option  of  the holder thereof, at any time, into such
number  of  fully-paid and nonassessable shares of Common Stock as determined by
dividing  the Conversion Value (as defined) by the Conversion Price (as defined)
then  in  effect  (as appropriately adjusted in accordance with this Section 4).
No additional consideration shall be paid by a holder of Class C Preferred Stock
upon  exercise  of  its  respective Conversion Rights pursuant to this paragraph
(a).

               (1)     Conversion  Value.  The "Conversion Value" for each share
                       -----------------
of  Class  C Preferred Stock shall be the Liquidation Price per share of Class C
Preferred  Stock.

               (2)     Conversion  Price.  The  conversion price at which shares
                       -----------------
of  Common Stock shall be deliverable upon conversion of Class C Preferred Stock
without  the  payment  of  additional  consideration by the holder thereof shall
initially be $8.20 per share of Common Stock (the "Conversion Price"), provided,
however,  that  if: (a) that certain Agreement and Plan of Merger dated December
31,  1999,  by  and among the Corporation, Pointe Communications Corporation and
Pointe Acquisition, Corp. (as amended from time to time, the "Merger Agreement")
is  terminated  pursuant  to  Section  11.3(b)  or  (d) thereof, (b) an event of
default  set  forth in Section 3.1(a) of that certain 12% Convertible Promissory
Note  issued  December  31, 1999 in the original principal amount of $10,000,000
(the  "Note"), occurs and is continuing, and (c) during the continuation of such
event  of  default,  the  Note  is converted into, inter alia, shares of Class C
Preferred  Stock  ("Default Series C") the Conversion Price for Default Series C
shall  be $5.00 per share of Common Stock.  Such Conversion Price (and therefore
the  corresponding  rate  at  which  shares  of  Class  C Preferred Stock may be
converted  into  shares  of  Common  Stock),  shall  be subject to adjustment as
provided  in  this  Section  4.
                    ----------

          (2)     Fractional Shares.  No fractional shares of Common Stock shall
                  -----------------
be  issued  upon  conversion  of  the  Class  C Preferred Stock.  In lieu of any
fractional  shares  to which a holder of Class C Preferred Stock would otherwise
be entitled, the Corporation shall pay cash equal to such fraction multiplied by
the  then  effective  Conversion  Price.

          (3)     Mechanics  of  Conversion.
                  -------------------------

                                      -5-
<PAGE>
               (1)     In  order  for  a  holder  of  Class C Preferred Stock to
convert  shares  of  Class  C  Preferred Stock into shares of Common Stock, such
holder  shall surrender the certificate or certificates for such shares of Class
C  Preferred Stock at the office of the transfer agent for the Class C Preferred
Stock  (or  at the principal office of the Corporation if the Corporation serves
as its own transfer agent), together with written notice that such holder elects
to  convert  all  or  any  number  of  the  shares  of  Class  C Preferred Stock
represented  by such certificate or certificates and stating therein the name or
names  in which the holder desires the certificate or certificates for shares of
the  Common  Stock  to  be issued.  If required by the Corporation, certificates
surrendered  for  conversion  shall  be  endorsed  or  accompanied  by a written
instrument  or instruments of transfer, in form satisfactory to the Corporation,
duly executed by the registered holder or his or its attorney duly authorized in
writing.  Each  date  of  receipt  of  such  certificates  and  notice  by  the
transferring  agent  (or by the Corporation if the Corporation serves as its own
transfer  agent)  shall  be  a conversion date (each, a "Conversion Date").  The
Corporation  shall,  as  soon  as  practicable after each Conversion Date and no
later  than  ten  (10)  days after the Conversion Date, (i) issue and deliver at
such  office  to  such  holder  of  Class  C  Preferred  Stock, a certificate or
certificates for the number of shares of Common Stock to which such holder shall
be  entitled as aforesaid, together with cash in lieu of any fraction of a share
in  accordance  with paragraph (b) above, or (ii) in lieu of delivering physical
certificates representing the shares of Common Stock, provided the Corporation's
transfer  agent  is  participating in the Depositary Trust Issuer Fast Automated
Securities  Transfer  ("FAST")  program,  upon  request  of  the  holder,  the
Corporation  shall  use  its  best  efforts  to  cause  its  transfer  agent  to
electronically  transmit  the shares of Common Stock issuable upon conversion of
the  Class  C  Preferred  Stock  to  the  holder by crediting the account of the
holder's  prime  broker  with  Depositary  Trust  Company  through  its  Deposit
Withdrawal  Agent  Commission  system.  Such  conversion shall be deemed to have
been  made  immediately  prior  to  the  close  of  business  on  the applicable
Conversion Date, and the person entitled to receive certificates of Common Stock
on  such  date shall be regarded for all corporate purposes as the holder of the
number  of shares of Common Stock to which it is entitled upon the conversion on
such  Conversion  Date.

               (2)     The Corporation shall, at all times when any of the Class
C  Preferred  Stock  shall remain outstanding, reserve and keep available out of
its  authorized  but unissued stock, for the purpose of effecting the conversion
of  the  Class  C  Preferred Stock, such number of its duly authorized shares of
Common  Stock  as shall from time to time be sufficient to effect the conversion
of  all  outstanding  Class  C  Preferred  Stock.

               (3)     All  shares  of  Class C Preferred Stock which shall have
been  surrendered for conversion as herein provided shall no longer be deemed to
be  outstanding  and  all  rights  with respect to such shares shall immediately
cease and terminate on the Conversion Date, except only the right of the holders
thereof  to receive shares of Common Stock and cash in lieu of fractional shares
in  exchange therefor.  Any shares of Class C Preferred Stock so converted shall
be  retired and canceled and shall not be reissued, and the Corporation may from
time  to  time  take  such  appropriate action as may be necessary to reduce the
authorized  Class  C  Preferred  Stock,  accordingly.

          (4)     Adjustments  to  Conversion  Price  for  Diluting  Issues.
                  ---------------------------------------------------------

               (1)     Special  Definitions.  For purposes of this Section 4(d),
                       --------------------                        -----------
the  following  definitions  shall  apply:

                    (1)     "Option"  shall  mean rights, options or warrants to
subscribe  for,  purchase  or  otherwise  acquire  Common  Stock  or Convertible
Securities  (as  defined), excluding (1) options granted to employees, officers,
directors  or  consultants  of  the  Corporation  or its subsidiaries or rights,
warrants,  or  other convertible securities which, in each case, are outstanding
as  of  the  First Issue Date (as defined), (2) any warrants issued on the First
Issue  Date  or  in  connection  with  the conversion of the Note (as defined in
Section  4(a)(ii)),  or (3) options granted to employees, officers, directors or
     ------------
consultants  pursuant  to stock option plans existing on the First Issue Date or
adopted  by the Board of Directors and approved by the Compensation Committee of
the  Board  of Directors and by the holders of Class C Preferred Stock after the
First  Issue  Date.
                    (1)

                                      -6-
<PAGE>
                    (2)     "First  Issue  Date"  shall  mean the Original Issue
Date  (as  defined  in  Section  1(c).

                    (3)     "Convertible Securities" shall mean any evidences of
indebtedness, shares or other securities directly or indirectly convertible into
or  exchangeable  for  Common Stock, other than (1) securities excluded from the
definition  of  "Option"  in  subparagraph  (A)  of this Section 4(d)(i), or (2)
outstanding  on  the  First  Issue  Date.

                    (4)     "Additional  Shares  of Common Stock" shall mean all
shares  of Common Stock issued (or, pursuant to subparagraph (iii) below, deemed
to  be  issued) by the Corporation after the First Issue Date, other than shares
of  Common  Stock  issued  or  issuable:

                         (1)     upon  the  conversion  of  shares  of  Class  C
Preferred  Stock  outstanding;

                         (2)     as  a  dividend  or  distribution  on  Class  C
Preferred  Stock;

                         (3)     by  reason of a dividend, stock split, split-up
or  other distribution on shares of the Class C Preferred Stock or Common Stock;

                         (4)     upon  the  exercise of securities excluded from
the  definition  of  "Option"  in  subparagraph  (A) of this Section 4(d)(i) and
"Convertible  Securities"  under  subparagraph (c) of this Section 4 (d) (i); or

                         (5)     in  connection  with  an  acquisition  or other
transaction  by  the  Corporation,  in either case approved by the holders of at
least  a  Supermajority  of the then outstanding shares of the Class C Preferred
Stock,  unless the Corporation agrees to include such issuance in the definition
of "Additional Shares of Common Stock" in connection with obtaining the approval
of the holders of at least a Supermajority of the then outstanding shares of the
Class  C  Preferred  Stock  to  such  acquisition  or  other  transaction;  or

                         (6)     by  reason of a dividend, stock split, split-up
or  other distribution on shares of Common Stock excluded from the definition of
"Additional  Shares of Common Stock" by the foregoing clauses (1), (2), (3), (4)
and  (5)  or  this  clause  (6).

                                      -7-
<PAGE>
               (2)     No  Adjustment of Conversion Price.  No adjustment in the
                       ----------------------------------
number  of  shares  of  Common  Stock  into which the Class C Preferred Stock is
convertible  shall  be made, by adjustment in the Conversion Price thereof:  (A)
unless  the  consideration  per  share  (determined pursuant to subparagraph (v)
below)  for  an  Additional  Share of Common Stock issued or deemed to be issued
pursuant  to  subparagraph  (iii)  below  by  the  Corporation  is less than the
Conversion Price in effect immediately prior to, the issuance of such Additional
Share  of  Common  Stock,  or  (B)  if  prior  to such issuance, the Corporation
receives written notice from the holders of at least a Supermajority of the then
outstanding  shares  of Class C Preferred Stock agreeing that no such adjustment
shall  be made as the result of the issuance of such Additional Shares of Common
Stock.

               (3)     Issue  of Securities Deemed Issue of Additional Shares of
                       ---------------------------------------------------------
Common  Stock.  If  the  Corporation  at any time or from time to time after the
-------------
First  Issue  Date  shall  issue any Options or Convertible Securities, then the
maximum  number  of  shares  of  Common  Stock  (as  set forth in the instrument
relating  thereto  without  regard  to  any  provision  contained  therein for a
subsequent adjustment of such number) issuable upon the exercise of such Options
or,  in  the case of Convertible Securities and Options therefor, the conversion
or  exchange  of  such  Convertible Securities, shall be deemed to be Additional
Shares  of  Common  Stock  issued as of the time of such issuance, provided that
Additional Shares of Common Stock shall not be deemed to have been issued unless
the  consideration  per share (determined pursuant to subparagraph (v) below) of
such  Additional  Shares of Common Stock would be less than the Conversion Price
in  effect  immediately prior to such issuance, and provided further that in any
such  case  in  which Additional Shares of Common Stock are deemed to be issued:

                    (1)     No  further adjustment in the Conversion Price shall
be  made  upon  the  subsequent  issuance of Convertible Securities or shares of
Common Stock upon the exercise of such Options or conversion or exchange of such
Convertible  Securities;

                    (2)     If  such  Options or Convertible Securities by their
terms  provide,  with  the passage of time or otherwise, for any increase in the
consideration payable to the Corporation, or decrease in the number of shares of
Common  Stock  issuable,  upon the exercise, conversion or exchange thereof, the
conversion price computed upon the original issuance thereof, and any subsequent
adjustments  based  thereon,  shall, upon any such increase or decrease becoming
effective,  be  recomputed  to  reflect  such increase or decrease insofar as it
affects  such  Options  or  the  rights  of  conversion  or  exchange under such
Convertible  Securities;

                    (3)     No  readjustment  pursuant to clause (B) above shall
have  the  effect  of increasing the Conversion Price to an amount which exceeds
the  Conversion  Price  on  the  original  adjustment  date;  and

                    (4)     In  the  event of any change in the number of shares
of Common Stock issuable upon the exercise, conversion or exchange of any Option
or  Convertible Security, including, but not limited to, a change resulting from
the  anti-dilution provisions thereof, the Conversion Price then in effect shall
forthwith  be readjusted to such Conversion Price as would have obtained had the
adjustment  which  was  made upon the issuance of any such Option or Convertible
Security  which  had  not  been exercised or converted prior to such change been
made  upon the basis of such change in the number of shares of Common Stock, but
no further adjustment shall be made for the actual issuance of Common Stock upon
the  exercise  or  conversion  of  any  such  Option  or  Convertible  Security.

                                      -8-
<PAGE>
                    (5)     Upon  the  expiration  of  any  such  Options or any
rights  of  conversion or exchange under such Convertible Securities which shall
not  have  been exercised, the Conversion Price computed upon the original issue
date  thereof,  and  any  subsequent adjustments based thereon, shall, upon such
expiration,  be  recomputed  as  if:

                         (1)     in  the  case  of  Convertible  Securities  or
Options for Common Stock, the only Additional Shares of Common Stock issued were
the  shares  of  Common Stock, if any, actually issued upon the exercise of such
Options  or  the  conversion  or exchange of such Convertible Securities and the
consideration  received  therefor was the consideration actually received by the
Company  upon such exercise; or for the issue of all such Convertible Securities
which  were  actually converted or exchanged, plus the additional consideration,
if  any,  actually received by the Company upon such conversion or exchange; and

                         (2)     in  the  case  of  Options  for  Convertible
Securities,  only  the  Convertible Securities, if any, actually issued upon the
exercise  thereof  were  issued  at  the  time of issue of such Options, and the
consideration  received by the Company for the Additional Shares of Common Stock
deemed  to  have been then issued was the consideration actually received by the
Company  for  the  issue of all such Options, whether or not exercised, plus the
consideration  deemed to have been received by the Company upon the issue of the
Convertible  Securities  with  respect  to  which  such  Options  were  actually
exercised.

               (4)     Adjustment  of  Conversion  Price  Upon  Issuance  of
                       -----------------------------------------------------
Additional  Shares  of  Common Stock.  In the event the Corporation shall at any
------------------------------------
time  after  the  First  Issue  Date  issue  Additional  Shares  of Common Stock
(including  Additional  Shares  of  Common Stock deemed to be issued pursuant to
subparagraph  (iii)  above,  but  excluding  shares  issued  as  a  dividend  or
distribution  as  provided  in  paragraph  (f)  below  or  upon a stock split or
combination  as  provided in paragraph (e) below), for a consideration per share
(determined  pursuant  to subparagraph (v) below) less than the Conversion Price
in  effect  immediately prior to such issuance, then and in each such case, such
Conversion  Price  shall  be  reduced,  concurrently  with  such  issuance, to a
Conversion  Price  equal  to the price determined by dividing (a) the sum of (1)
the  product  derived  by multiplying the Conversion Price in effect immediately
prior  to  such  issuance  by  the  number of shares of Common Stock outstanding
immediately prior to such issuance (together with the number of shares of Common
Stock  then  issuable  upon  conversion  of  the  outstanding  shares of Class C
Preferred  Stock and the conversion or exercise of any Convertible Securities or
Options  (including  for  this  purpose  any securities of the Corporation which
would  be  excluded  from  the definitions of Options and Convertible Securities
pursuant  to Sections 4(d)(i)(A) and (C))), plus (2) the aggregate consideration
             ---------------------------
received  by  the Corporation (as determined pursuant to subparagraph (v) below)
upon  such  issuance,  by  (b)  the number of shares of Common Stock outstanding
immediately  after  such  issuance (together with the number of shares of Common
Stock  then  issuable  upon  conversion  of  the  outstanding  shares of Class C
Preferred  Stock and the conversion or exercise of any Convertible Securities or
Options  (including  for  this  purpose  any securities of the Corporation which
would  be  excluded  from  the definitions of Options and Convertible Securities
pursuant  to  Sections  4(d)(i)(A)  and  (C))).
              ------------------------------

                                      -9-
<PAGE>
               No  adjustment of the Conversion Price, however, shall be made in
an  amount  less  than  $.01  per share, and any such lesser adjustment shall be
carried  forward  and  shall  be  made  at  the  time and together with the next
subsequent  adjustment  which  together  with any adjustments so carried forward
shall amount to $.01 per share or more.  Any adjustments to the Conversion Price
shall  be  rounded  to  the  nearest  $.01  per  share.

               (5)     Determination  of  Consideration.  For  purposes  of this
                       --------------------------------
Section  4(d), the consideration received by the Corporation for the issuance of
any  Additional  Shares  of  Common  Stock  shall  be  computed  as  follows:

                    (1)     Cash  and  Property.  Such  consideration  shall:
                            -------------------

                         (1)     insofar  as it consists of cash, be computed at
the  aggregate  of  cash  received by the Corporation, excluding amounts paid or
payable  for  accrued  interest  or  accrued  dividends;

                         (2)     insofar  as  it consists of property other than
cash, be computed at the fair market value thereof at the time of such issuance,
as  is  reasonably  determined  in  good  faith  by  the Board of Directors; and

                         (3)     in  the event Additional Shares of Common Stock
are  issued  together  with  other  shares  of securities or other assets of the
Corporation  for  consideration  which  covers  both,  be the proportion of such
consideration so received, computed as provided in clauses (1) and (2) above, as
is  reasonably  determined  in  good  faith  by  the  Board  of  Directors.

                    (2)     Options  and  Convertible  Securities.  The
                            -------------------------------------
consideration  per  share  received  by the Corporation for Additional Shares of
Common  Stock  deemed  to have been issued pursuant to subparagraph (iii) above,
relating to Options and Convertible Securities, shall be determined by dividing:

                         (1)     the  total  amount,  if  any,  received  or
receivable  by the Corporation as consideration for the issuance of such Options
or  Convertible  Securities,  plus  the  minimum  aggregate amount of additional
consideration  (as set forth in the instruments relating thereto, without regard
to  any  provision  contained  therein  for  a  subsequent  adjustment  of  such
consideration)  payable  to the Corporation upon the exercise of such Options or
the  conversion  or  exchange  of such Convertible Securities, or in the case of
Options for Convertible Securities, the exercise of such Options for Convertible
Securities  and  the  conversion  or exchange of such Convertible Securities, by

                         (2)     the  maximum  number  of shares of Common Stock
(as  set  forth  in  the  instruments  relating  thereto,  without regard to any
provision contained therein for a subsequent adjustment of such number) issuable
upon  the  exercise  of  such  Options  or  the  conversion  or exchange of such
Convertible  Securities.

                                      -10-
<PAGE>
          (5)     Adjustment  for  Stock  Splits  and  Combinations.  If  the
                  -------------------------------------------------
Corporation  shall  at  any time or from time to time after the First Issue Date
effect  a subdivision of the outstanding Common Stock, the Conversion Price then
in effect immediately before that subdivision shall be proportionately decreased
and  the  number  of  shares of Common Stock issuable upon the conversion of the
Class  C Preferred Stock shall be proportionately increased.  If the Corporation
shall  at  any  time or from time to time after the First Issue Date combine the
outstanding  shares  of  Common  Stock,  the  Conversion  Price  then  in effect
immediately  before  the combination shall be proportionately increased  and the
number  of  shares  of  Common Stock issuable upon the conversion of the Class C
Preferred  Stock  shall be proportionately decreased.  Any adjustment under this
paragraph  shall  become  effective  at  the  close  of business on the date the
subdivision  or  combination  becomes  effective.

          (6)     Adjustment  for  Certain  Dividends  and Distributions. In the
                  ------------------------------------------------------
event  the  Corporation  at any time, or from time to time after the First Issue
Date, shall make or issue a dividend or other distribution payable in additional
shares of Common Stock, then and in each such event the Conversion Price then in
effect  shall  be  decreased as of the time of such issuance, by multiplying the
Conversion  Price  then  in  effect  by  a  fraction:

                    (1)     the  numerator of which shall be the total number of
shares  of  Common Stock issued and outstanding immediately prior to the time of
such  issuance  or  the  close  of  business  on  such  record  date,  and

                    (2)     the  denominator  of which shall be the total number
of  shares  of Common Stock issued and outstanding immediately prior to the time
of such issuance or the close of business on such record date plus the number of
shares  of  Common  Stock  issuable in payment of such dividend or distribution;
provided,  however,  if such record date shall have been fixed and such dividend
is  not  fully  paid or if such distribution is not fully made on the date fixed
therefor,  the  Conversion Price shall be recomputed accordingly as of the close
of  business  on  such  record date and thereafter the Conversion Price shall be
adjusted  pursuant  to  this  paragraph as of the time of actual payment of such
dividends  or  distributions.

     (7)     Adjustments for Other Dividends and Distributions. In the event the
             -------------------------------------------------
Corporation  at  any  time or from time to time after the First Issue Date shall
make  or  issue  a  dividend  or other distribution payable in securities of the
Corporation  other  than  shares  of  Common  Stock, then and in each such event
provision shall be made so that the holders of the Class C Preferred Stock shall
receive  upon  conversion  thereof in addition to the number of shares of Common
Stock  receivable  thereupon,  the  amount of securities of the Corporation that
they  would  have received had their Class C Preferred Stock been converted into
Common  Stock  on  the  date of such event and had thereafter, during the period
from  the date of such event to and including the conversion date, retained such
securities receivable by them as aforesaid during such period giving application
to  all  adjustments  called  for  during  such period under this paragraph with
respect  to  the  rights  of  the  holders  of  the  Class  C  Preferred  Stock.

                                      -11-
<PAGE>
          (8)     Adjustment  for  Reclassification,  Exchange, or Substitution.
                  -------------------------------------------------------------
If  the Common Stock issuable upon the conversion of the Class C Preferred Stock
shall  be  changed into the same or a different number of shares of any class or
classes  of  stock,  whether  by  capital  reorganization,  reclassification  or
otherwise  (other  than a subdivision or combination of shares or stock dividend
provided  for  above,  or  a  reorganization,  merger, consolidation, or sale of
assets  provided for below), then and in each such event the holder of each such
share of Class C Preferred Stock shall have the right thereafter to convert such
share  into  the  kind  and  amount  of shares of stock and other securities and
property receivable upon such reorganization, reclassification, or other change,
by  holders  of  the  number of shares of Common Stock into which such shares of
Class  C  Preferred  Stock  might  have been converted immediately prior to such
reorganization,  reclassification,  or change, all subject to further adjustment
as  provided  herein.

          (9)     Adjustment  for  Merger  or  Reorganization.  In  case  of any
                  -------------------------------------------
consolidation  or  merger  of  the Corporation with or into another corporation,
each  share  of Class C Preferred Stock shall thereafter be convertible into the
kind  and  amount  of shares of stock or other securities or property to which a
holder  of  the  number of shares of Common Stock of the Corporation deliverable
upon  conversion  of such Class C Preferred Stock would have been entitled if it
had converted its shares immediately prior to such consolidation or merger; and,
in  such  case, appropriate adjustment (as determined in good faith by the Board
of Directors) shall be made in the application of the provisions in this Section
4 set forth with respect to the rights and interest thereafter of the holders of
the  Class  C  Preferred Stock, to the end that the provisions set forth in this
Section 4 (including provisions with respect to changes in and other adjustments
of the Conversion Price) shall thereafter be applicable, as nearly as reasonably
may  be  practicable,  in  relation  to  any  shares  of stock or other property
thereafter  deliverable  upon  the  conversion  of  the Class C Preferred Stock.

          (10)     No  Impairment.  The  Corporation  will  not, by amendment of
                   --------------
these  Articles  of  Incorporation  or  through  any reorganization, transfer of
assets,  consolidation,  merger, dissolution, issue or sale of securities or any
other  voluntary action, avoid or seek to avoid the observance or performance of
any  of  the terms to be observed or performed hereunder by the Corporation, but
will at all times in good faith assist in the carrying out of all the provisions
of  this  Section  4 and in the taking of all such action as may be necessary or
appropriate  in  order  to  protect  the Conversion Rights of the holders of the
Class  C  Preferred  Stock.

          (11)     Notice  of  Record  Date.  In  the  event:
                   ------------------------

               (1)     that  the Corporation shall propose to declare a dividend
(or  any  other  distribution)  on  its  Common  Stock, whether payable in cash,
property,  Common Stock or other securities of the Corporation, whether or not a
regular  cash  dividend  and  whether  or not out of earnings or earned surplus;

               (2)     that  the  Corporation  shall  propose  to  subdivide  or
combine  its  outstanding  shares  of  Common  Stock;

               (3)     that  the  Corporation  shall  propose  to  effect  any
reclassification  or  recapitalization  of  the  Common Stock of the Corporation
outstanding  (other  than a subdivision or combination of its outstanding shares
of  Common  Stock  or  a  stock  dividend or stock distribution thereon), or any
consolidation  or merger of the Corporation into or with another corporation; or

                                      -12-
<PAGE>
               (4)     that  the  Corporation  shall  propose  to  effect  the
Liquidation  of  the  Corporation;

then in connection with each such event, the Corporation shall cause to be filed
at  its  principal  office or at the office of the transfer agent of the Class C
Preferred Stock and shall cause to be mailed to each of the holders of the Class
C  Preferred  Stock  at  their  last  addresses  as  shown on the records of the
Corporation  or  such transfer agent, at least ten (10) days prior to the record
date  specified  in  (A)  below  or  at  least  twenty (20) days before the date
specified  in  (B)  below,  a  notice  stating:

                    (1)     the  record  date  of  such  dividend, distribution,
subdivision  or  combination, or, if a record is not to be taken, the date as of
which  the  holders  of  Common Stock of record to be entitled to such dividend,
distribution,  subdivision  or  combination  are  to  be  determined,  or

                    (2)     the  date  on  which  such  reclassification,
consolidation,  merger,  or Liquidation is expected to become effective, and the
date  as of which it is expected that holders of Common Stock of record shall be
entitled  to  exchange  their  shares  of  Common  Stock for securities or other
property  deliverable  upon  such  reclassification,  consolidation,  merger, or
Liquidation.

          (12)     Certificate  as  to Adjustments.  Upon the occurrence of each
                   -------------------------------
adjustment  or  readjustment  pursuant to this Section 4, the Corporation at its
expense  shall  promptly  compute  such adjustment or readjustment in accordance
with  the  terms  hereof and furnish to each holder of Class C Preferred Stock a
certificate  setting forth such adjustment or readjustment and showing in detail
the  facts upon which such adjustment or readjustment is based.  The Corporation
shall,  upon  the written request at any time of any holder of Class C Preferred
Stock  furnish  or  cause  to  be furnished to such holder a similar certificate
setting  forth (i) such adjustments and readjustments; (ii) the Conversion Price
then  in  effect; and (iii) the number of shares of Common Stock and the amount,
if  any,  of  other property which then would be received upon the conversion of
Class  C  Preferred  Stock.

                                      -13-
<PAGE>
          (13)     Stock  to  be  Reserved.  The  Corporation  will at all times
                   -----------------------
reserve  and  keep  available out of its authorized Common Stock, solely for the
purpose  of  issuance  upon  the conversion of Class C Preferred Stock as herein
provided,  such  number of shares of Common Stock as shall then be issuable upon
the  conversion  of  all  outstanding  shares  of  Class C Preferred Stock.  The
Corporation  covenants  that all shares of Common Stock which shall be so issued
shall  be duly and validly issued and fully-paid and nonassessable and free from
all  taxes,  liens  and  charges with respect to the issue thereof, and, without
limiting the generality of the foregoing, the Corporation covenants that it will
from  time  to  time take all such action as may be requisite to assure that the
par  value  per  share of the Common Stock is at all times equal to or less than
the  Conversion Price in effect at the time.  The Corporation will take all such
action as may be necessary to assure that all such shares of Common Stock may be
so  issued  without  violation  of  any  applicable law or regulation, or of any
requirement  of any national securities exchange or market upon which the Common
Stock  may be listed.  The Corporation will not take any action which results in
any  adjustment  of the Conversion Price if the total number of shares of Common
Stock  issued  and  issuable  after  such  action upon conversion of the Class C
Preferred  Stock  would  exceed  the total number of shares of Common Stock then
authorized  by  these  Articles  of  Incorporation,  as  amended.

          (14)     Issue Tax.  The issuance of certificates for shares of Common
                   ---------
Stock  upon  conversion  of  the  Class C Preferred Stock, shall be made without
charge  to the holders thereof for any issuance tax in respect thereof, provided
that  the  Corporation shall not be required to pay any tax which may be payable
in  respect  of  any  transfer  involved  in  the  issuance  and delivery of any
certificate  in  a  name  other than that of the holder of the Class C Preferred
Stock  which  is  being  converted.

     Section  5.     Mandatory  Conversion.
                     ---------------------

          (1)     The  Corporation  may  require  the  conversion  of all of the
outstanding Class C Preferred Stock (i) in conjunction with a Qualified Offering
(as  defined)  or (ii) at any time after the first year anniversary of the First
Issue  Date  if:  (1) the Common Stock shall have been listed for trading on the
New York Stock Exchange, the NASDAQ National Market System or the American Stock
Exchange  (each,  an "Exchange"); (2) the Common Stock shall have traded on such
Exchange  for  a  period  of at least 20 consecutive trading days at a price per
share of at least $15.00 (subject to appropriate adjustment for Recapitalization
Events); and (3) the cumulative average daily trading volume of the Common Stock
during  such  20  consecutive  trading  day period shall be at least $3,000,000;
provided,  that,  the shares of Common Stock issuable upon such conversion shall
--------   ----
have  been  Registered  (as  defined)  and  listed  on each securities exchange,
over-the-counter  market  or  on  the  NASDAQ  National  Market on which similar
securities  issued by the Corporation are then listed.  "Registered" shall refer
to  a  registration  effected  by  preparing  and filing with the Securities and
Exchange  Commission  (the  "Commission") a registration statement in compliance
with  the Securities Act of 1933, as amended, and the declaration or ordering by
the Commission of the effectiveness of such registration statement.  A mandatory
conversion  pursuant  to a Qualified Offering shall only be effected at the time
of  and subject to the closing of the Qualified Offering and upon written notice
of  such  mandatory  conver-sion  delivered  to all holders of Class C Preferred
Stock  at  least  seven  (7)  days prior to such closing.  The Corporation shall
deliver written notice of a mandatory conversion pursuant to clause (ii) of this
paragraph  (a) to all holders of Class C Preferred Stock at least seven (7) days
prior  to  such  conversion.  For  purposes  of  this  paragraph  (a),  the term
"Qualified  Offering" shall mean the sale by the Corporation of its Common Stock
or  other equity interests in a public offering at a purchase price per share in
excess  of  $15.00  per  share  (subject  to  appropriate  adjustment  for
Recapitalization  Events)  yielding  gross  proceeds to the Corporation not less
than  $30,000,000.

          In  addition, the Class C Preferred Stock shall automatically convert,
based  upon the Conversion Price of $8.20 per share of Common Stock as set forth
in  Section  4(a)(ii)  above,  if issued upon conversion of the Note pursuant to
Section  11.3(b) of the Merger Agreement prior to any event of default under the
Note.

                                      -14-
<PAGE>
          (2)     On  the  date fixed for conversion, all rights with respect to
the  Class C Preferred Stock so converted will terminate upon conversion.  If so
required  by  the  Corporation, certificates surrendered for conversion shall be
endorsed  or  accompanied  by  written instrument or instruments of transfer, in
form  satisfactory to the Corporation, duly executed by the registered holder or
by his or its attorney duly authorized in writing.  As soon as practicable after
the date of such conversion and the surrender of the certificate or certificates
for  Class  C  Preferred  Stock,  the  Corporation  shall cause to be issued and
delivered  to  such  holder,  or  on  his or its written order, a certificate or
certificates  for  the  number  of  full shares of Common Stock issuable on such
conversion  in  accordance  with  the  provisions hereof and cash as provided in
Section  4(c)  in  respect  of any fraction of a share of Common Stock otherwise
issuable  upon  such  conversion.

          (3)     All  certificates evidencing shares of Class C Preferred Stock
which  are  required  to  be  surrendered  for conversion in accordance with the
provisions  hereof  shall,  from  and  after  the  date such certificates are so
required  to be surrendered, be deemed to have been retired and canceled and the
shares  of  Class  C  Preferred  Stock represented thereby converted into Common
Stock  for  all purposes as of the date of conversion set forth in paragraph (a)
above, notwithstanding the failure of the holder or holders thereof to surrender
such  certificates.

     Section  6.     Events  of  Noncompliance.
                     -------------------------

          (1)     Definition.  An Event of Noncompliance shall have occurred if:
                  ----------

               (1)     the Corporation fails to pay on any Dividend Payment Date
the  full  amount  of  dividends  then  accrued  on the Class C Preferred Stock,
whether  or  not  such payments are legally permissible or are prohibited by any
agreement  to  which  the  Corporation  is  subject;

               (2)     the  Corporation  fails to exchange the Class C Preferred
Stock  as  required  hereunder,  whether  or  not  such  redemption  is  legally
permissible  or  is  prohibited  by  any  agreement  to which the Corporation is
subject;

               (3)     subject  to  subparagraph  (iv)  below,  the  Corporation
breaches any provision of that certain Registration Rights Agreement dated as of
December  31,  1999,  by  and between the Corporation and  Pointe Communications
Corporation  (the "Registration Rights Agreement") and fails to cure such breach
within  45  days  of  notice  thereof (in which case, the Event of Noncompliance
shall  be  deemed  to  have  occurred  on  the original date of such breach); or

               (4)     the  Corporation  breaches  Section  2.1(a)  of  the
Registration  Rights  Agreement.

               (2)     Consequences  of  Events  of  Noncompliance.
                       -------------------------------------------

                                      -15-
<PAGE>
               (1)     If  an  Event  of  Noncompliance  has  occurred,  (1) the
dividend  rate on the Class C Preferred Stock set forth in Section 1(a) shall be
deemed  to increase immediately by an increment of twelve (12) percentage points
and (2) all dividends on the Class C Preferred Stock thereafter shall be paid by
the issuance of Additional Shares as set forth in Section 1(e).  Any increase of
the  dividend  rate  resulting  from  the  operation  of this subparagraph shall
terminate  as  of  the  close  of  business  on  the  date  on which no Event of
Noncompliance  exists.

               (2)     If  any  Event  of Noncompliance of the type described in
subparagraph  6(a)(i)  has  occurred, for each such occurrence of the failure to
pay  on  any  Dividend Payment Date the full amount of dividends then accrued on
the  Class  C Preferred, whether or not such payments are legally permissible or
are  prohibited  by  any  agreement  to  which  the Corporation is subject,  the
Conver-sion  Price  shall be reduced immediately by fifty percent (50%) from the
Conversion  Price  in  effect immediately prior to such adjustment.  In no event
shall  any  Conversion  Price  adjustment  be  rescinded.

               (3)     If  any  Event  of  Noncompliance  exists, each holder of
Class  C  Preferred  Stock shall also have any other rights which such holder is
entitled  to  under  the  Securities Purchase Agreement or any other contract or
agreement  with  such  holder at any time and any other rights which such holder
may  have  pursuant  to  applicable  law.

     Section  7.          Transfer.  Prior  to  termination  of  the  Merger
                          --------
Agreement, or consummation of the transactions provided for therein, a holder of
Class C Preferred Stock shall not transfer such shares without the prior written
consent  of  the  Corporation.

     The foregoing was duly adopted by the Board of Directors as of December 22,
1999,  pursuant  to  the  provisions  of  the  Texas  Business  Corporation Act.

     The  foregoing  resolution  was duly adopted by all necessary action on the
part  of  the  corporation.

     IN  WITNESS  WHEREOF,  the  Corporation  has  caused  this  Certificate  of
Designations  to  be  signed  by  the  undersigned  as  of  January  19,  2000.

                              TELSCAPE  INTERNATIONAL,  INC.

                              By:_____________________________
                              Name:___________________________
                              Title:  ________________________

                                      -16-
<PAGE>

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