Document:

Note Purchase Agreement

 Exhibit 4.15 
 Execution Copy 
 THIS NOTE PURCHASE AGREEMENT is made on July 26, 2006 
 BETWEEN 
  

	(1)	Alestra, S. de R.L. de C.V. (the “Issuer”); and 

  

	(2)	Deutsche Bank AG, London Branch (the “Bank”). 

 WHEREAS the Issuer has authorized the creation and issue of one or more promissory notes in an aggregate principal amount not exceeding U.S.$50,000,000. 
 IT IS AGREED as follows: 
  

	1.	INTERPRETATION 

  

	1.1	Definitions 

 In this Agreement the following
expressions have the following meanings: 
 “AT&T Notice and Consent” means the Notice and Consent dated
on or about the date hereof, by and among the Issuer and AT&T Corp.; 
 “Closing Date” means, subject to
Clause 8.2 (Postponed closing), July 27, 2006; 
 “Collateral” has the meaning specified in the
Security Agreement; 
 “Collateral Agent” means Deutsche Bank Trust Company Americas, as collateral agent
pursuant to the Security Agreement; 
 “Conditions” means the terms and conditions of the Note as the same
may be modified prior to the Closing Date, and any reference to a numbered “Condition” is to the correspondingly numbered provision thereof; 
 “Event of Default” means one of those circumstances described in Condition 6.1 (Events of Default) of the Note; 
 “Holder” means each person who is registered as the owner of a Note on the register maintained by the Issuer. 

“Issue Date” means each date on which one or more Notes may be issued; 
 “Loss” means any liability, damages, cost, loss or expense (including, without limitation, legal fees, costs and expenses
and any value added tax thereon) related to or arising from the inaccuracy or alleged inaccuracy of any representation and warranty made by the Issuer hereunder or under the Security Documents or any breach or alleged breach by the Issuer of any of
its undertakings in this Agreement, the Notes or the Security Documents; 
  

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 “Material Adverse Effect” means a material adverse effect after the date
hereof on (a) the economic or financial condition of the Issuer; (b) the ability of the Issuer to perform its obligations under this Agreement, the Security Documents or any Note; or (c) the validity or enforceability of this
Agreement, the Security Documents or the Note or the rights or remedies of the Bank or any Holder hereunder or thereunder; 
 “Note” means each promissory note of the Issuer, in form and substance set out in Schedule 1 hereto; 
 “Person” means any individual, company, corporation, firm, partnership, joint venture, association, organisation, state or agency of a state or other entity, whether or not having separate legal personality; 
 “Registered Financial Institution” shall mean any non-Mexican financing institution (a) registered with the
Secretaría de Hacienda y Crédito Público in Mexico for purposes of Article 195 or 196 of the Mexican Income Tax Law (Ley del Impuesto Sobre la Renta), the regulations thereunder (or any successor statute or
regulation) and any resoluciones misceláneas thereunder and (b) that is in material compliance with all such regulations. 
 “Related Party” means, in respect of any Person, any affiliate of that Person or any officer, director, employee or agent of that Person or any such affiliate or any Person by whom any of them is
controlled (where the terms “affiliate” and “controlled” have the meanings given to them by the Securities Act and the United States Securities Exchange Act of 1934, as amended, and the regulations thereunder); 
 “Securities Act” means the United States Securities Act of 1933; 
 “Security Agreement” means the Security Agreement dated on or about the date hereof, by and between the Issuer and the
Collateral Agent; 
 “Security Documents” means the Security Agreement, the AT&T Notice and Consent and
all other documents, instruments and filings to be executed and delivered by the Borrower in favor of the Bank in connection with such agreements and the transactions contemplated thereby; 
 “U.S.$” and “dollars” denote the lawful currency for the time being of the United States of America.

  

	2.	ISSUE OF THE NOTE 

 Issuer may issue
one or more Notes subject to and in accordance with this Agreement. The Bank undertakes to the Issuer that, subject to and in accordance with the provisions of this Agreement, it will subscribe for the Notes (if any) on the relevant Issue Date at a
subscription price payable in cash equal to the face amount of each Note; provided that the Bank shall not be required to subscribe for Notes in an aggregate principal amount exceeding U.S. $50,000,000. 
  

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	3.	REPRESENTATIONS AND WARRANTIES BY THE ISSUER 

  

	3.1	Issuer’s representations 

 The Issuer
represents and warrants to the Bank that: 
  

	 	3.1.1	 Authorization: the Issuer has taken all necessary action to approve and authorize the creation and issue of the Notes, the execution of this Agreement and
the Security Documents and the undertaking and performance of the obligations expressed to be assumed by it herein and therein; 

  

	 	3.1.2	 No breach: the creation, issue and sale of the Notes, the execution of this Agreement and the Security Documents and the undertaking and performance by
the Issuer of the obligations expressed to be assumed by it herein and therein will not conflict with, or result in a breach of or default under, any laws applicable to the Issuer or any agreement or instrument to which it is a party or by which it
is bound; 

  

	 	3.1.3	 Legal, valid, binding and enforceable: this Agreement and the Security Documents constitute and, upon due execution by or on behalf of the Issuer, the
Notes will constitute legal, valid, binding and enforceable obligations of the Issuer; 

  

	 	3.1.4	 Status: the payment obligations of the Issuer under the Notes will be a direct, general, unconditional and unsubordinated obligation of the Issuer and
will, except to the extent secured pursuant to the Security Documents, rank at least pari passu in priority of payment with all other existing and future unsecured and unsubordinated indebtedness of the Issuer; 

 

	 	3.1.5	 Approvals: no Government Approval is required to be taken, fulfilled or done for the issue of the Notes, the carrying out of the other transactions
contemplated by this Agreement or the Security Documents or the compliance by the Issuer with the terms of the Notes, this Agreement and the Security Documents as the case may be, except for those which have been (or will, prior to the Closing Date,
be) obtained and are (or will, on the Closing Date, be) in full force and effect. As used herein, the term “Government Approvals” means approvals, authorizations, permits, consents, exemptions and licenses of or by, and notices to
or filings or registrations with, any national, state or local government or any agency, department, ministry, authority, statutory corporation or other statutory body or juridical entity of any government or any political subdivision thereof or
therein, now existing or hereafter created (a “Governmental Authority”); 

  

	 	3.1.6	 Taxation: no stamp or other duty is assessable or payable in, and no withholding or deduction for any taxes, duties, assessments or governmental charges
of whatever nature is imposed or made for or on account of any income, registration, transfer or turnover taxes, customs or other duties or taxes of any kind, levied, collected, withheld or assessed by or within, Mexico or by any subdivision of or
authority therein or thereof having power to tax in connection with the authorization, execution or delivery of this Agreement or the Security Documents or with the authorization, execution, issue, sale or delivery of the Notes and the performance
of the Issuer’s obligations under this Agreement, the Security Documents and the Notes; 

  

	 	3.1.7	 No Event of Default: no event has occurred which is or would become (with the passage of time, the giving of notice or the making of any determination) an
Event of Default; 

  

	 	3.1.8	 No Material Adverse Effect: no event or circumstance exists which has had or could have a Material Adverse Effect; and 

  

	 	3.1.9	 Security Agreement Representations and Warranties: all representations and warranties of the Issuer set forth in the Security Agreement are true and
correct as of the date hereof. 

  

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	4.	UNDERTAKINGS BY THE ISSUER 

  

	4.1	Further Assurances 

 The Issuer
shall execute any and all further documents, agreements and instruments, and take all further action at its own expense that may be required under applicable law, or that the Bank may reasonably request, in order to effectuate the transaction
contemplated by this Agreement and the Security Documents. 
  

	4.2	Translation 

 Without limiting the
generality of Clause 4.1 (Further Assurances), the Issuer shall upon demand by the Bank in connection with any action to enforce, or potential action to enforce, this Agreement, the Security Documents or the Notes, or any exercise of rights
or remedies hereunder or thereunder, cause a certified translation of this Agreement, the Security Documents and the Notes in the Spanish language to be prepared promptly following such demand. 
  

	5.	SELLING RESTRICTIONS 

  

	5.1	Issuer Representations 

 The Issuer
hereby represents and warrants to the Bank on the date hereof: 
  

	 	5.1.1	 Registration of Notes not required: neither the Issuer, nor any of its agencies or affiliates nor any Person acting on behalf of any of them has made any
offers or sales of the Notes or any similar securities or otherwise approached or negotiated in respect thereof with any Person other than the Bank except pursuant to an exemption from, or in a transaction not subject to, the registration
requirements of the Securities Act. 

  

	 	5.1.2	 No directed selling efforts: neither the Issuer, its affiliates nor any Person acting on its or their behalf have engaged or will engage in any directed
selling efforts with respect to the Notes and each has complied with the offering restrictions of Regulation S under the Securities Act. Terms defined in this Clause 5.1.2 shall have the meanings given by Regulation S. 

 

	 	5.1.3	 POS Regulations: Neither the Issuer, nor any of its agencies or affiliates nor any Person acting on behalf of any of them has made any offers of the Notes
to the public in the United Kingdom within the meaning of the Public Offers of Securities Regulations 1995. 

  

	5.2	 Bank Representations 

 The Bank hereby represents and warrants to the Issuer on the date hereof: 
  

	 	5.2.1	 Regulation S: The Bank understands that the Notes have not been and will not be registered under the Securities Act, and may not be offered or sold within
the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. The Bank represents that it has not offered or sold, and agrees that it will not offer or sell, the
Notes, or any part thereof, within the United States except in accordance with Rule 903 of Regulation S under the Securities Act. Accordingly, the Bank represents and agrees that neither it, its affiliates nor any persons acting on its behalf have
engaged or will engage in any directed selling efforts with respect to the Notes. Terms used in this paragraph have the meanings given to them by Regulation S. 

  

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	 	5.2.2	 Financial Services and Markets Act: The Bank represents and agrees that is has complied and will comply with all applicable provisions of the Financial
Services and Markets Act 2000 with respect to anything done by it in relation to the Notes in, from or otherwise involving the United Kingdom. 

  

	6.	INDEMNIFICATION 

  

	6.1	Indemnity by Issuer 

 The Issuer
undertakes with the Bank that it will indemnify and hold harmless the Bank or any of the Bank’s Related Parties (each an “Indemnified Person”) from and against any and all Loss which any of them may incur or which may be made
against any of them, and will reimburse each Indemnified Person for all costs, charges and expenses which any Indemnified Person may pay or incur, in each case in connection with investigating, disputing or defending any action or claim as such
Loss, costs, charges and expenses are incurred. This indemnity will be in addition to any liability which the Issuer may otherwise have. The Bank shall not have any duty or other obligation, whether as fiduciary or trustee for any of its Related
Parties or otherwise, to recover any such payment or to account to any other Person for any amounts paid to it under this Clause. 
  

	7.	FEES AND EXPENSES 

  

	7.1	Issuer’s costs and expenses 

 The Issuer is responsible for paying: 
  

	 	7.1.1	 Structuring fee: a non-refundable structuring fee in respect of structuring services provided prior to the Closing Date by the Bank to the Issuer in
respect of the transactions contemplated hereby, such fee to be in an amount equal to 0.85% of the aggregate principal amount of the Notes, payable on the date such Notes are issued in full; 

  

	 	7.1.2	 Professional advisers: all reasonable fees and expenses of the legal, accountancy and other professional advisers in connection with the creation and
issue of the Notes; and 

  

	 	7.1.3	 Legal documentation: the costs incurred in connection with the preparation and execution of this Agreement, the Security Documents and the Notes.

  

	7.2	Taxes 

 Any and all payments in
respect of the obligations of the Issuer under this Agreement and the Security Documents shall be made free and clear of and without deduction for any present or future taxes, levies, imposts, deductions, charges or withholdings, and all interest,
penalties or other liabilities with respect thereto, imposed or levied at any time, excluding (i) taxes imposed or measured by the Bank’s income or capital by the jurisdiction (or any political subdivision or taxing authority of such
jurisdiction or any organization or federation of which such jurisdiction is at any time a member) under the laws of which the Bank is organized, (ii) taxes imposed on or measured by the Bank’s income or capital by the jurisdiction (or any
political subdivision or taxing authority of such jurisdiction or any organization or federation of which such jurisdiction is at any time a member) in which the principal place of business or residence (as the case may 

  

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be) of the Bank is located, (iii) all other taxes imposed by any jurisdiction (or any political subdivision or taxing authority of such jurisdiction or
any organization or federation of which such jurisdiction is at any time a member) outside Mexico except such taxes which arise as a result of the Bank holding the Note, receiving payments thereunder or enforcing payment thereunder or as a result of
action taken by the Issuer and (iv) any taxes, levies, imposts, deductions or withholdings to the extent the same arise by reason of the Bank’s failure to be a Registered Financial Institution, unless an Event of Default shall have
occurred and be continuing at the time of such payment (all such non-excluded taxes, levies, imposts, deductions, charges, withholdings and liabilities being herein called “Taxes”). In the event that the Issuer consolidates or
merges with or into, or conveys, leases or transfers all or substantially all of its assets to, a Person in a transaction or series of transactions, where the resulting, surviving or transferee person is a company organized and existing under the
laws of any jurisdiction (an “Additional Taxing Jurisdiction”) other than Mexico or any political subdivision thereof, in accordance with the terms of the Notes, and, as a result, is required by the law of such Additional Taxing
Jurisdiction to deduct or withhold any amount on account of taxes imposed by such Additional Taxing Jurisdiction from payments hereunder, as the case may be, which would not have been required to be so deducted or withheld but for such organization,
existence or conduct of business in such Additional Taxing Jurisdiction, then all references to Mexico under this section “—Taxes” will be deemed to also include such Additional Taxing Jurisdiction and any political subdivision
thereof. 
 If the Issuer shall be required by law to deduct any Taxes or any present or future taxes, levies, imposts,
deductions, charges or withholdings excluded above, including all interest, penalties or other liabilities with respect thereto, imposed or levied at any time, from or in respect of any sum payable under this Agreement or the Security Documents or
in respect thereof to the Bank, (a) with respect to Taxes, the Issuer shall pay such additional amounts (“Additional Amounts”) as may be necessary so that after making all required deductions for Taxes (including deductions
applicable to Additional Amounts payable under this Clause 7.2) the Bank receives an amount equal to the sum it would have received had no such deductions been made, (b) the Issuer will make such deductions, (c) the Issuer will pay the
full amount deducted to the relevant taxing authority or other authority in accordance with applicable law before penalties are payable or interest accrues thereon, and (d) if any such penalties are payable or interest accrues, the Issuer shall
make payment thereof when due to the appropriate governmental authority and, after each such payment of taxes (including any penalties or interest thereon), the Issuer shall promptly and in any event within 60 days of such payment deliver to the
Bank an official receipt or a certified copy thereof evidencing such payment. 
  

	7.3	Stamp duties 

 The Issuer shall pay
any stamp duty, issue, registration, documentary or other taxes and duties, including interest and penalties payable on or in connection with the creation, issue and offering of the Notes or the execution of this Agreement and the Security Documents
and imposed by Mexico, the United Kingdom or the United States of America or by any subdivision of or authority in any of the foregoing countries, and the Issuer shall indemnify the Bank against any claim, demand, action, liability, damages, cost,
loss or expense (including, without limitation, legal fees) which it may incur as a result or arising out of or in relation to any failure to pay or delay in paying any of the same. 
  

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	8.	CLOSING 

  

	8.1	Closing 

 Subject to Clause 8.3
(Conditions precedent), on or after the Closing Date, on each Issue Date, the Issuer shall deliver one or more Notes, duly executed on behalf of the Issuer, to the Bank. 
  

	8.2	Postponed closing 

 The Issuer and
the Bank may agree to postpone the Closing Date to another date not later than August 3, 2006, whereupon all references herein to the Closing Date shall be construed as being to that later date. 
  

	8.3	Conditions precedent 

 The Bank shall only be under
obligation to subscribe and pay for the Notes if: 
  

	 	8.3.1	 Closing documents: the Bank receives on (or, in the case of the evidence referred to in sub-paragraph (d), on or before) the Closing Date:

  

	 	(a)	 Legal opinions: with respect to each Note, a legal opinion dated each Issue Date and addressed to the Bank from external counsel to the Issuer,
substantially in the form set out in Schedule 2 hereto; 

  

	 	(b)	 Closing certificate: a closing certificate dated the Closing Date, addressed to the Bank and signed by a duly authorized signatory on behalf of the Issuer
in a form acceptable to the Bank; 

  

	 	(c)	 Incumbency certificate: a certificate of an authorized signatory of the Issuer setting out the full name, title and true signature of each representative
of the Issuer authorized to sign, on behalf of the Issuer, the Notes, this Agreement, the Security Documents and any documents to be delivered by the Issuer pursuant hereto; 

  

	 	(d)	 Process agent’s acceptance: evidence that the Person mentioned in Clause 12.3 (Service of Process) has agreed to receive process in the manner
specified therein; 

  

	 	(e)	 Organizational documents and resolutions: (i) copies of the certificate of incorporation (estatutos), organizational documents and by-laws of
the Issuer, and (ii) a notarized copy of resolutions of the governing body of the Issuer approving and authorizing the execution, delivery and performance of this Agreement, the Notes and the Security Documents, in each case certified as of the
Closing Date by the Issuer’s secretary or an assistant secretary as being in full force and effect without modification or amendment; 

  

	 	(f)	 Security documents: the Security Documents fully executed by the parties thereto, each of which shall be in full force and effect; and

  

	 	(g)	 Redemption notice: the Issuer shall have duly and validly given irrevocable notice of the redemption of the entire outstanding aggregate principal amount
of 

  

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its Senior Notes due 2009 (the “Redemption Notes”) and the Issuer shall have provided the Bank with evidence satisfactory to the Bank of the
giving of such notice. 

  

	 	8.3.2	 No Material Adverse Effect: on each Issue Date, no event or circumstance has occurred or is in existence which has had or could have a Material Adverse
Effect; 

  

	 	8.3.3	 Accuracy of representations: the representations and warranties by the Issuer in this Agreement and the Security Documents are true and correct on the
date of this Agreement and would be true and correct if they were repeated on the Closing Date and on each Issue Date with reference to the facts and circumstances then subsisting; and 

  

	 	8.3.4	 Collateral Account: the Issuer shall have taken all actions required to be taken pursuant to the Security Agreement on or prior to the date thereof.

  

	9.	SURVIVAL 

 This Agreement shall be
binding upon, and inure to the benefit of, the Issuer and the Bank and their respective transferees, successors and assigns; provided that this Agreement shall not be assignable by the Issuer without the prior written consent of the Bank. The
representations, warranties, agreements, undertakings and indemnities herein shall continue in full force and effect notwithstanding completion of the arrangements for the issue of the Notes or any investigation made by or on behalf of the Bank or
any Related Party. 
  

	10.	TIME 

 Any date or period specified
herein may be postponed or extended by mutual agreement between the parties but, as regards any date or period originally fixed or so postponed or extended, time shall be of the essence. 
  

	11.	NOTICES 

  

	11.1	Addresses for notices 

 All notices and other
communications hereunder shall be made in writing and in English (by letter or fax) and shall be sent as follows: 
  

	 	11.1.1	Issuer: if to the Issuer, to it at: 

 Alestra, S.
de R.L. de C.V. 
 Av. Lázaro Cárdenas No. 2321, 9th Floor 
 Col.
Residencial San Agustin 
 Garza García N.L. 66260, México 
 Fax.: +818 625-2303 
 Att: Mr. Patricio
de la Garza 
  

	 	11.1.2	Bank: if to the Bank, to it at: 

 Deutsche Bank AG,
London 
 Winchester House 
 1
Great Winchester Street 
 London EC2N 2DB 
 Fax: +44 20 7545 3872 
 Att: 
  

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	11.2	Effectiveness 

 Every notice or other communication
sent in accordance with Clause 11.1 (Addresses for notices) shall be effective upon receipt by a responsible party at the address or fax number specified therein. 
  

	12.	LAW AND JURISDICTION 

  

	12.1	Governing law 

 This Agreement shall be governed by
and construed in accordance with the laws of the State of New York. 
  

	12.2	Jurisdiction 

 The Issuer hereby
irrevocably consents to the jurisdiction of any court of the State of New York or any United States federal court sitting in the Borough of Manhattan, New York City, New York, United States, and any appellate court from any thereof in respect of any
actions or proceedings brought against it hereunder, and waives any immunity from the jurisdiction of such courts over any suit, action or proceeding that may be brought in connection with this Agreement, the Security Documents or the Notes. The
Issuer hereby irrevocably waives, to the fullest extent permitted by law, any objection to any suit, action, or proceeding that may be brought in connection with this Agreement, the Security Documents or the Notes in such courts whether on the
grounds of venue, residence or domicile or on the ground that any such suit, action or proceeding has been brought in an inconvenient forum. Additionally, the Issuer hereby waives the right to trial by jury and to assert counterclaims in any such
proceedings and agrees that final judgment in any such suit, action or proceeding brought in such court shall be conclusive and binding upon it and may be enforced in any court of the jurisdiction to which the Issuer is subject by a suit upon such
judgment. 
  

	12.3	Service of Process 

 The Issuer
agrees that service of all writs, process and summonses in any suit, action or proceeding brought in connection with this Agreement, the Security Documents or the Notes against the Issuer in any court of the State of New York or any United States
federal court sitting in the Borough of Manhattan, New York City, New York, United States, may be made upon CT Corporation System at 111 Eighth Avenue, 13th Floor, New York, New York 10011, whom the Issuer irrevocably appoints as its authorized
agent for service of process. The Issuer represents and warrants that CT Corporation System has agreed to act as the agent for service of process for the Issuer. The Issuer agrees that such appointment shall be irrevocable so long as any of the
Notes remain outstanding or until the irrevocable appointment by the Issuer of a successor in The City of New York as its authorized agent for such purpose and the acceptance of such appointment by such successor. The Issuer further agrees to take
any and all action, including the filing of any and all documents and instruments, that may be necessary to continue such appointment in full force and effect as aforesaid. If CT Corporation System shall cease to act as the agent for service of
process for the Issuer, the Issuer shall appoint without delay another such agent and provide prompt written notice to the Bank of such appointment. With respect to any 

  

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such action in any court of the State of New York or any United States federal court in the Borough of Manhattan, New York City, New York, United States,
service of process upon CT Corporation System, as the authorized agent of the Issuer for service of process, and written notice of such service to the Issuer shall be deemed, in every respect, effective service of process upon the Issuer. Nothing in
this Clause 12.3 shall affect the right of any party to serve legal process in any other manner permitted by law. 
  

	13.	COUNTERPARTS 

 This Agreement may be executed in any
number of counterparts, each of which shall be deemed an original. 
 AS WITNESS the hands of the duly authorized representatives of the parties to
this Agreement the day and year first before written. 
  

			
	ALESTRA, S. de R.L. de C.V.
		
	By:	 	 /s/ Sergio Bravo

	Name:	 	  Sergio Bravo
	Title:	 	  Treasurer
	
	DEUTSCHE BANK AG, LONDON BRANCH
		
	By:	 	 /s/ John Farrell

	Name:	 	  John Farrell
	Title:	 	  Vice President

  

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 SCHEDULE 1 
 FORM OF PROMISSORY NOTE 
 THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE U.S.
SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAW. THE HOLDER HEREOF, BY PURCHASING THIS NOTE, AGREES FOR THE BENEFIT OF THE ISSUER THAT THIS NOTE MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OF, A U.S.
PERSON, EXCEPT IN ACCORDANCE WITH REGULATION S OR UNDER, OR PURSUANT TO, AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. TERMS USED ABOVE HAVE THE MEANINGS GIVEN TO THEM IN REGULATION S. 
 THIS NOTE IS ISSUED UNDER, AND ENTITLED TO THE BENEFITS OF, A NOTE PURCHASE AGREEMENT DATED JULY 26, 2006 BETWEEN THE ISSUER AND THE BANK. THIS NOTE
AND ANY OTHER NOTES OUTSTANDING FROM TIME TO TIME UNDER THE NOTE PURCHASE AGREEMENT ARE COLLECTIVELY REFERRED TO AS THE “NOTES”. 
 ALESTRA, S. de R.L. de C.V. 
 Issue Date: July 27, 2006 
 Amount: $50,000,000.00 
 Number: 1 
  

	1.	PROMISE TO PAY; OPTIONAL REDEMPTION 

  

	1.1	 For value received, Alestra, S. de R.L. de C.V. (the “Issuer”) promises to pay to Deutsche Bank AG, London Branch (the
“Bank”), being the person registered in the register maintained by the Issuer (the “Holder”) each amount set forth in Annex A to this Note on the corresponding date set forth in such annex (or on such earlier date
as such amounts may become repayable in accordance with the terms hereof), and to pay interest in arrears on each such amount at the rate and on the dates specified herein, together with such additional amounts as may be payable in accordance with
the terms hereof, all subject to and in accordance with the terms of this Note. 

  

	1.2	 In addition to principal payments due pursuant to Section 1.1, the Issuer may, at its option, upon notice as provided in Section 1.2.1, redeem all (but
not less than all) of the outstanding Notes on any Payment Date (such Payment Date, the “Redemption Date”) at a redemption price equal to the sum of (a) the then outstanding principal amount of such Notes multiplied by the
percentage set forth in the following table plus (b) accrued interest thereon to the Redemption Date plus (c) any additional amounts as may be payable thereon. 

  

				
	 Twelve-Month Period
 From/To (but not including)
	  	Percentage	 
	 Issue Date to First Anniversary of Issue Date
	  	104	%
	 First Anniversary of Issue Date to Second Anniversary of Issue Date
	  	102	%
	 Second Anniversary of Issue Date to Maturity Date
	  	101	%

  

 S-1 

	 	1.2.1	With respect to any optional redemption of this Note pursuant to Section 1.2, the Issuer will give the Holder written notice thereof at least 10 and not more than 30 days prior
to the Redemption Date, specifying the Redemption Date and the premium payable in respect of such redemption. 

  

	2.	INTEREST 

  

	2.1	 Interest shall accrue on the outstanding principal amount of this Note at a rate of LIBOR plus 1.65% per annum during each applicable Interest
Period. Interest accrued for each Interest Period shall be paid in cash on the last day of the Interest Period during which it accrued (each such day, a “Payment Date”). Interest shall be calculated on the basis of a 360-day year
and actual days elapsed. 

  

	 	2.1.1	 As used herein, “Interest Period” means (i) in the case of the first Interest Period, the period commencing on the Issue Date and ending on
November 1, 2006; and (ii) thereafter each period commencing on the last day of the preceding Interest Period and ending on the date three months thereafter, provided, that: 

  

	 	(a)	 any Interest Period that would otherwise end on a day that is not a Business Day shall be extended to the next succeeding Business Day unless such Business Day
falls in another calendar month, in which case such Interest Period shall end on the next preceding Business Day; 

  

	 	(b)	 any Interest Period that begins on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar
month at the end of such Interest Period) shall end on the last Business Day of the calendar month at the end of such Interest Period; and 

  

	 	(c)	 no Interest Period shall extend beyond February 1, 2010 (the “Maturity Date”). 

  

	 	2.1.2	 On the second London Business Day prior to the commencement of each Interest Period (each, an “Interest Determination Date”), the Determination
Agent shall determine “LIBOR” to be applicable to such Interest Period as follows: 

  

	 	(a)	 LIBOR for such Interest Period shall equal the average of the rates per annum which appear on Telerate Page 3750 for deposits in dollars, for a period of three
months, as of 11:00 a.m. (London time) on the Interest Determination Date for such Interest Period, divided (and rounded, if necessary, upward to the next whole multiple of 1/16 of 1%) by a percentage equal to 100% minus the then stated maximum rate
of all reserve requirements, if any (including, without limitation, any marginal, emergency, supplemental, special or other reserves) applicable on the Interest Determination Date for such Interest Period to (i) any member bank of the United
States Federal Reserve System in respect of Eurocurrency liabilities (as defined in Regulation D) or (ii) any lender lending from a lending office in a member state participating in the European Monetary Union by virtue of regulations of the
European Central Bank; 

  

	 	(b)	 if on any Interest Determination Date, Telerate Page 3750 (or other comparable service reasonably selected by the Holder) is not displayed, the Determination

  

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Agent will request three principal banks in the London interbank market (the “Reference Banks”) to provide the Determination Agent with
their offered quotations for deposits in dollars, for a period of three months and in an amount substantially equal to the outstanding principal amount of all Notes outstanding, to prime lenders in the London interbank market at approximately 11:00
a.m., London time, on such Interest Determination Date. If at least two such quotations are provided, LIBOR shall be calculated using the average of such quotations, and divided (and rounded, if necessary, upward to the next whole multiple of 1/16
of 1%) by a percentage equal to 100% minus the then stated maximum rate of all reserve requirements, if any (including, without limitation, any marginal, emergency, supplemental, special or other reserves) applicable on such Interest Determination
Date to (i) any member bank of the United States Federal Reserve System in respect of Eurocurrency liabilities (as defined in Regulation D) or (ii) any lender lending from a lending office in a member state participating in the European
Monetary Union by virtue of regulations of the European Central Bank; 

  

	 	(c)	 If (A) fewer than two Reference Banks provide quotations to the Determination Agent to determine LIBOR, or (B) the Determination Agent is advised by
the Reference Banks that deposits in dollars are not offered to the Reference Banks in the London interbank market for such Interest Period, LIBOR for such Interest Period shall be LIBOR as determined for the immediately preceding Interest Period.

  

	 	2.1.3	 As used herein, “London Business Day” shall mean a day (other than a Saturday or Sunday) on which banks in London, England generally are open
for the conduct of substantially all of their commercial lending activities and on which dealings in dollars are carried on in the London interbank market. 

  

	 	2.1.4	 The Determination Agent shall, no later than the Business Day following the related Interest Determination Date, send a notice to the Issuer and the Collateral
Agent, in substantially the form of Annex B hereto, by fax or email. 

  

	2.2	 If any amount due on this Note is improperly withheld or refused or default is otherwise made in the payment thereof, interest shall accrue on such amount
(as well after as before any judgment) at the rate of two per cent (2%) per annum above the rate specified in Clause 2.1 until the date on which the relevant payment is made. 

  

	3.	 PAYMENTS 

  

	3.1	 All payments in respect of this Note shall be made in Dollars and in immediately available funds, without set-off or counterclaim, by transfer to such
Dollar account maintained by the Holder (either inside or outside Mexico) as the Holder may specify to the Issuer for such purpose from time to time; provided that, unless and until an Event of Default has occurred, such payments may be made
from the account maintained by the Issuer with the Collateral Agent pursuant to the Security Agreement, and the Holder shall from time to time specify to the Collateral Agent for such purpose a Dollar account maintained by the Holder (either inside
or outside Mexico). 

  

	3.2	 If a Payment Date (or the due date for payment of any amount in respect of this Note) falls on a date which is not a Business Day, the relevant Payment
Date (or due date for such amount) will be the first following day which is a Business Day unless that day falls in the next calendar month, in which case the relevant Payment Date (or due date for such amount) will be the first preceding day which
is a Business Day. 

  

 S-3 

	4.	TAXATION 

  

	4.1	 Any and all payments by the Issuer under this Note or in respect thereof shall be made free and clear of and without deduction for any present or future
taxes, levies, imposts, deductions, charges or withholdings, and all interest, penalties or other liabilities with respect thereto, imposed or levied at any time, excluding (i) in the case of the Holder, taxes imposed or measured by its income
or capital by the jurisdiction (or any political subdivision or taxing authority of such jurisdiction or any organization or federation of which such jurisdiction is at any time a member) under the laws of which the Holder is organized, (ii) in
the case of the Holder, taxes imposed on or measured by its income or capital by the jurisdiction (or any political subdivision or taxing authority of such jurisdiction or any organization or federation of which such jurisdiction is at any time a
member) in which the principal place of business or residence (as the case may be) of the Holder is located, (iii) all other taxes imposed by any jurisdiction (or any political subdivision or taxing authority of such jurisdiction or any
organization or federation of which such jurisdiction is at any time a member) outside Mexico except such taxes which arise as a result of the Holder holding the Note, receiving payments thereunder or enforcing payment thereunder or as a result of
action taken by the Issuer and (iv) any taxes, levies, imposts, deductions or withholdings to the extent the same arise by reason of the Holder’s failure to be a Registered Financial Institution, unless an Event of Default shall have
occurred and be continuing at the time of such payment (all such non-excluded taxes, levies, imposts, deductions, charges, withholdings and liabilities being herein called “Taxes”). In the event that a Successor Company (as defined
under Section 5.17.1) is organized and existing, or conducts business, under the laws of any jurisdiction (an “Additional Taxing Jurisdiction”) other than Mexico or any political subdivision thereof and, as a result, is
required by the law of such Additional Taxing Jurisdiction to deduct or withhold any amount on account of taxes imposed by such Additional Taxing Jurisdiction from payments hereunder, as the case may be, which would not have been required to be so
deducted or withheld but for such organization, existence or conduct of business in such Additional Taxing Jurisdiction, then all references to Mexico under this section “—Taxation” will be deemed to also include such Additional
Taxing Jurisdiction and any political subdivision thereof. 

  

	4.2	 If the Issuer shall be required by law to deduct any Taxes or any present or future taxes, levies, imposts, deductions, charges or withholdings excluded
above, including all interest, penalties or other liabilities with respect thereto, imposed or levied at any time, from or in respect of any sum payable under this Note or in respect thereof to the Holder, (a) with respect to Taxes, the Issuer
shall pay such additional amounts (“Additional Amounts”) as may be necessary so that after making all required deductions for Taxes (including deductions applicable to Additional Amounts payable under this Section (a)) the Holder
receives an amount equal to the sum it would have received had no such deductions been made, (b) the Issuer will make such deductions, (c) the Issuer will pay the full amount deducted to the relevant taxing authority or other authority in
accordance with applicable law before penalties are payable or interest accrues thereon, and (d) if any such penalties are payable or interest accrues, the Issuer shall make payment thereof when due to the appropriate governmental authority
and, after each such payment of taxes (including any penalties or interest thereon), the Issuer shall promptly and in any event within 60 days of such payment deliver to the Holder an official receipt or a certified copy thereof evidencing such
payment. 

  

 S-4 

	5.	COVENANTS 

  

	5.1	The Issuer covenants and agrees with the Holder that: 

  

	 	(a)	 the Issuer shall obtain, comply with the terms of and do all that is necessary to maintain in full force and effect all authorizations, approvals, licenses,
registrations and consents required in or by the laws and regulations of Mexico to enable it lawfully to enter into and perform its obligations under this Note or to ensure the legality, validity, enforceability or admissibility in evidence in
Mexico of this Note; 

  

	 	(b)	 the Issuer shall ensure that at all times the claims of the Holder against it under this Note rank at least pari passu with the claims of all its other
unsecured creditors; and 

  

	 	(c)	 the Issuer shall upon demand by the Holder in connection with any action to enforce, or potential action to enforce, this Note, or any exercise of rights or
remedies hereunder or thereunder, cause a certified translation of this Note in the Spanish language to be prepared promptly following such demand. 

  

	5.2	 Corporate Existence 

 The Issuer shall do or cause to be done all things necessary to preserve and keep in full force and effect the corporate existence, rights (charter and statutory), licenses and franchises of the Issuer and each Restricted Subsidiary;
provided, however, that the Issuer will not be required to preserve any such right, license or franchise if the Board shall determine that the preservation thereof is no longer desirable in the conduct of the business of the Issuer and
the Restricted Subsidiaries as a whole and that the loss thereof is not adverse in any material respect to the Holder; provided, further, that the foregoing will not prohibit a sale, transfer or conveyance of a Subsidiary of the Issuer
or any of its assets in compliance with the terms of this Note. 
  

	5.3	 Payment of Taxes and Other Claims 

 The Issuer shall pay or discharge or cause to be paid or discharged, before the same shall become delinquent, (a) all material taxes, assessments and governmental charges levied or imposed (i) upon the
Issuer or any of its Restricted Subsidiaries or (ii) upon the income, profits or property of the Issuer or any of the Restricted Subsidiaries and (b) all material lawful claims for labor, materials and supplies, which, if unpaid, could
reasonably be expected to become a Lien upon the property of the Issuer or any of the Restricted Subsidiaries; provided, however, that the Issuer will not be required to pay or discharge or cause to be paid or discharged any such tax,
assessment, charge or claim whose amount, applicability or validity is being contested in good faith by appropriate proceedings properly instituted and diligently conducted. 
  

	5.4	 Maintenance of Properties 

 The Issuer shall cause all material properties owned by the Issuer or any of the Restricted Subsidiaries or used or held for use in the conduct of their respective businesses to be maintained and kept in good
condition, repair and working order and supplied with all necessary equipment and will cause to be made all necessary repairs, renewals, replacements, betterments and improvements thereof, all as in the judgment of the Issuer may be necessary so
that the business carried on in connection therewith may be properly and advantageously conducted at all times; provided, however, that nothing in this Clause 5.4 will prevent the Issuer from discontinuing the maintenance of any of
such properties if such discontinuance is, in the judgment of the Issuer, desirable in the conduct of its business or the business of any of the Restricted Subsidiaries and is not disadvantageous in any material respect to the Holder. 
  

 S-5 

	5.5	Insurance 

 The Issuer shall at all
times keep all of its and the Restricted Subsidiaries’ properties which are of an insurable nature insured with insurers, believed by the Issuer in good faith to be financially sound and responsible, against loss or damage to the extent that
property of similar character is usually and customarily so insured by corporations in Mexico similarly situated and owning like properties. 
  

	5.6	Books and Records 

  

	 	5.6.1	 The Issuer shall keep proper books of record and account, in which full and correct entries will be made of all financial transactions and the assets and
business of the Issuer and each Restricted Subsidiary of the Issuer in material compliance with GAAP. 

  

	 	5.6.2	 The Issuer shall use its best efforts to file with the SEC (for so long as the SEC may require) and provide to the Holder (i) within 90 days after the end
of each fiscal year, (x) audited year-end consolidated financial statements of the Issuer and its Subsidiaries (including a balance sheet, statement of operations and statement of cash flows), (y) the information described in Item 303
of Regulation S-K under the Securities Act with respect to such period and (z) all pro forma and historical financial information in respect of any significant transaction consummated more than 75 days prior to the date such information is
furnished (and any other transaction for which such information is available at such time) for the time periods such financial information would be required in a filing on Form 20-F with the SEC at such time; and (ii) within 60 days after the
end of each of the first three fiscal quarters of each fiscal year, (x) unaudited quarterly consolidated financial statements (including a balance sheet, statement of operations and statement of cash flows), (y) the information described
in Item 303 of Regulation S K under the Securities Act with respect to such period and (z) all pro forma and historical financial information in respect of any significant transaction consummated more than 75 days prior to the date such
information is furnished (and any other transaction for which such information in available at such time) to the extent not previously provided and for the time periods such financial information would be required by SEC regulations at such time.
Financial statements of the Issuer contained in any such reports will be prepared in accordance with GAAP and each such report referred to in clause (i) above will contain a reconciliation to U.S. generally accepted accounting principles
consistently applied and will be prepared in accordance with the applicable rules and regulations of the SEC. 

  

	5.7	Change of Control 

 Upon the
occurrence of a Change of Control (the date of such occurrence being the “Change of Control Date”), the Holder shall have the right to require that the Issuer make an offer to purchase (the “Change of Control
Offer”), on a business day (the “Change of Control Payment Date”) not later than 90 days following the Change of Control Date, such Holder’s Notes at a purchase price in cash equal to 101% of the principal amount
thereof on the Change of Control Payment Date, plus accrued and unpaid interest, if any, to any Change of Control Payment Date. Notice of a Change of Control Offer shall be given by the Issuer to the Holder not less than 30 days before the Change of
Control Payment Date. The Change of Control Offer is required to remain open for at least 10 Business Days and until the close of business on the Change of Control Payment Date. 
  

 S-6 

	5.8	Limitation on Indebtedness 

  

	 	5.8.1	 The Issuer shall not, and shall not permit any Restricted Subsidiary to, Incur, directly or indirectly, any Indebtedness; provided, however, that
the Issuer may Incur Indebtedness if, on the date of such Incurrence and after giving effect thereto, the Consolidated Leverage Ratio would be less than or equal to 4.0 to 1.0. 

  

	 	5.8.2	 Notwithstanding the foregoing Clause 5.8.1, the Issuer or the Restricted Subsidiaries (to the extent specified and so long as each Restricted Subsidiary is in
compliance with Clause 5.14), may Incur any or all of the following Indebtedness: 

  

	 	(i)	 Indebtedness of the Issuer having an aggregate principal amount not to exceed $50 million at any time outstanding; 

  

	 	(ii)	 Indebtedness owed to and held by the Issuer or a Restricted Subsidiary; provided, however, that (i) any event which results in any such
Restricted Subsidiary ceasing to be a Restricted Subsidiary or any subsequent transfer of such Indebtedness (other than to the Issuer or a Restricted Subsidiary) shall be deemed, in each case, to constitute the Incurrence of such Indebtedness by the
obligor thereon and (ii) if the Issuer is the obligor on such Indebtedness, such Indebtedness is expressly subordinated to the prior payment in full in cash of all obligations with respect to the Notes; 

  

	 	(iii)	 the Notes and the Existing Notes; 

  

	 	(iv)	 Indebtedness outstanding on the Closing Date; 

  

	 	(v)	 Refinancing Indebtedness in respect of Indebtedness Incurred pursuant to Clause 5.8.1 or pursuant to paragraph (iii) or (iv) of this Clause 5.8.2 or
this clause (v); 

  

	 	(vi)	 Indebtedness of the Issuer not to exceed, at any one time outstanding, 2.0 times the sum of (i) the aggregate Net Cash Proceeds received by the Issuer from
the issuance and sale of, or capital contribution in respect of, its Capital Stock (other than Disqualified Stock and other than an issuance or sale to a Subsidiary of the Issuer or an issuance or sale to an employee stock ownership plan or to a
trust established by the Issuer or any of its Subsidiaries for the benefit of their employees) subsequent to May 17, 1999 (less the amount of such proceeds used to make Restricted Payments as provided in clause 5.9.1(B) or 5.9.2(i)) and
(ii) 80% of the Fair Market Value of property (other than cash or cash equivalents) received by the Issuer after May 17, 1999 from the issuance of Capital Stock (other than Disqualified Stock and other than an issuance to a Subsidiary of
the Issuer) issued in connection with any acquisition of a company primarily engaged in a telecommunications business; provided, however, that such Indebtedness does not mature prior to the Maturity Date of the Notes and the Average
Life of such Indebtedness is greater than that of the Notes; 

  

 S-7 

	 	(vii)	 Hedging Obligations consisting of (i) Currency Agreements and (ii) Interest Rate Agreements directly related to Indebtedness permitted to be Incurred
by the Issuer pursuant to this Note; provided that such agreements do not increase the Indebtedness of the obligor outstanding at any time other than as a result of fluctuations in foreign currency exchange rates or interest rates or by
reason of fees, indemnities and compensation thereunder; 

  

	 	(viii)	 Indebtedness of the Issuer, to the extent the net proceeds thereof are promptly used to purchase Notes pursuant to a Change of Control Offer;

  

	 	(ix)	 Indebtedness arising from agreements providing for indemnification, adjustment of purchase price or similar obligations, or from guarantees or letters of credit,
surety bonds or performance bonds securing such obligations if the Issuer or its Restricted Subsidiaries, in any case Incurred in connection with the disposition of any business, assets or Restricted Subsidiary (other than guarantees of Indebtedness
Incurred by any Person acquiring all or any portion of such business, assets or Restricted Subsidiary for the purpose of financing such acquisition), in a principal amount not to exceed the gross proceeds actually received by the Issuer or a
Restricted Subsidiary in connection with such disposition; 

  

	 	(x)	 Strategic Subordinated Indebtedness; 

  

	 	(xi)	 Indebtedness arising from the honoring by a bank or other financial institution of a check, or similar instrument inadvertently (except in the case of daily
overdrafts) drawn against insufficient funds in the ordinary course of business; provided that such Indebtedness is extinguished within three business days of Incurrence; 

  

	 	(xii)	 Indebtedness consisting of performance and other similar bonds and reimbursement obligations Incurred by the Issuer in the ordinary course of business securing
the performance of contractual, franchise or license obligations of the Issuer or a Restricted Subsidiary; and 

  

	 	(xiii)	 Indebtedness of the Issuer or any of its Restricted Subsidiaries constituting reimbursement obligations with respect to letters of credit issued in the ordinary
course of business in respect of workers’ compensation claims or self-insurance, or other Indebtedness with respect to reimbursement type obligations regarding workers’ compensation claims; provided, however, that obligations
arising upon the drawing of such letters of credit or the incurrence of such Indebtedness are reimbursed within 30 days following such drawing or incurrence. 

  

	 	5.8.3	 For purposes of determining compliance with this Clause 5.8, (i) in the event that an item of Indebtedness meets the criteria of more than one of the types
of Indebtedness described above, the Issuer, in its sole discretion, will classify such item of Indebtedness at the time of its Incurrence and only be required to include the amount and type of such Indebtedness in one of the above clauses and
(ii) an item of Indebtedness may be divided and classified in more than one of the types of Indebtedness described above. 

  

	 	5.8.4	 Restricted Subsidiaries that are Guarantors of the Notes may guarantee (subject to compliance with Clause 5.14) any Indebtedness incurred by the Issuer in
compliance with 

  

 S-8 

	 	 
Clause 5.8.2 or 5.8.3 above and, for purposes of determining any particular amount of Indebtedness incurred under this covenant, such guarantee shall not be
deemed to be the Incurrence of any Indebtedness. 

  

	5.9	Limitation on Restricted Payments 

  

	 	5.9.1	 The Issuer shall not, and shall not permit any Restricted Subsidiary, directly or indirectly, to make a Restricted Payment if at the time the Issuer or such
Restricted Subsidiary makes such Restricted Payment: (1) a Default shall have occurred and be continuing (or would result therefrom); (2) the Issuer is not able to Incur an additional $1.00 of Indebtedness pursuant to Clause 5.8.1 or
(3) the aggregate amount of such Restricted Payment and all other Restricted Payments since May 17, 1999 would exceed the sum of: 

  

	 	(A)	 25% of the aggregate amount of the Consolidated Net Income (or if Consolidated Net Income is a loss, minus 100% of the amount of such loss) (determined by
excluding income resulting from transfers of assets by the Issuer or a Restricted Subsidiary to an Unrestricted Subsidiary) accrued on a cumulative basis during the period (taken as one accounting period) beginning on the first day of the fiscal
quarter immediately following May 17, 1999 and ending on the last day of the last fiscal quarter preceding the date of the proposed Restricted Payment for which reports have been filed with the SEC or provided to the Holder pursuant to Clause
5.6.2; plus 

  

	 	(B)	 50% of the aggregate Net Cash Proceeds received by the Issuer from the issuance or sale of its Capital Stock (other than Disqualified Stock) and the aggregate
cash received by the Issuer as a capital contribution from its stockholders, in each case subsequent to May 17, 1999 (other than (i) from an issuance or sale to a Subsidiary of the Issuer, and (ii) to the extent such Net Cash Proceeds
or cash received are used to Incur new Indebtedness pursuant to subclause (vi) of Clause 5.8.2); plus 

  

	 	(C)	 the amount by which Indebtedness of the Issuer is reduced on the Issuer’s balance sheet upon the conversion or exchange (other than by a Subsidiary of the
Issuer) subsequent to May 17, 1999 of any Indebtedness of the Issuer convertible or exchangeable for Capital Stock (other than Disqualified Stock) of the Issuer (less the amount of any cash, or the Fair Market Value of any other property,
distributed by the Issuer upon such conversion or exchange); plus 

  

	 	(D)	 to the extent not included in Consolidated Net Income, an amount equal to the net reduction (received by the Issuer or any Restricted Subsidiary in cash or
Temporary Cash Investments) in Investments (other than Permitted Investments) since May 17, 1999 (including reductions resulting from return of equity capital, repayments of the principal of loans or advances or the redesignation of an
Unrestricted Subsidiary as a Restricted Subsidiary or other disposition of Investments), not to exceed, in the case of any Investment, the amount of Investments (other than Permitted Investments) made by the Issuer and its Restricted Subsidiaries in
such Person since May 17, 1999. 

  

 S-9 

	 	5.9.2	The provisions of the foregoing Clause 5.9.1 shall not prohibit: 

  

	 	(i)	 so long as no Default shall have occurred and be continuing, any Restricted Payment made out of the proceeds of the substantially concurrent sale of, or capital
contribution in respect of, or made by exchange for, Capital Stock of the Issuer (other than Disqualified Stock and other than Capital Stock issued or sold to a Subsidiary of the Issuer or an employee stock ownership plan or to a trust established
by the Issuer or any of its Subsidiaries for the benefit of their employees); provided, however, that (A) the proceeds of any such substantially concurrent sale of, or capital contribution in respect of, Capital Stock are not used
to Incur new Indebtedness pursuant to clause (b)(vi) of Section 10.11, (B) such Restricted Payment shall be excluded in the calculation of the amount of Restricted Payments made since May 17, 1999 and (C) the Net Cash Proceeds
from such sale shall be excluded from the calculation of amounts under Clause 5.9.1(B) above; 

  

	 	(ii)	 so long as no Default shall have occurred and be continuing, any purchase, repurchase, redemption, defeasance or other acquisition or retirement for value of
Subordinated Obligations made by exchange for, or out of the proceeds of the substantially concurrent sale of, Subordinated Obligations of the Issuer which is permitted to be Incurred pursuant to Section 10.11 and having an Average Life that is
equal to or greater than the Average Life of the Subordinated Obligations being purchased, redeemed, defeased or otherwise acquired or retired; provided, however, that such purchase, repurchase, redemption, defeasance or other
acquisition or retirement for value shall be excluded in the calculation of the amount of Restricted Payments made since May 17, 1999; 

  

	 	(iii)	 dividends paid within 60 days after the date of declaration thereof if at such date of declaration such dividend would have complied with this covenant;
provided further, however, that such dividend shall be included in the calculation of the amount of Restricted Payments made since May 17, 1999; 

  

	 	(iv)	 so long as no Default shall have occurred and be continuing, the repurchase or other acquisition of shares of, or options to purchase shares of, Capital Stock
(other than Disqualified Stock) of the Issuer or any of its Subsidiaries from employees, former employees, directors or former directors of the Issuer or any of its Subsidiaries (or permitted transferees of such employees, former employees,
directors or former directors), pursuant to the terms of the agreements (including employment agreements) or plans (or amendments thereto) approved by the Board of Directors under which such individuals purchase or sell or are granted the option to
purchase or sell, shares of such Capital Stock (other than Disqualified Stock); provided, however, that the aggregate amount of such repurchases and other acquisitions shall not exceed $1,000,000 in any calendar year and $2,500,000 in
the aggregate since May 17, 1999; provided further, however, that such repurchases and other acquisitions shall be excluded in the calculation of the amount of Restricted Payments; 

  

	 	(v)	 payments or distributions to dissenting stockholders pursuant to applicable law, pursuant to or in connection with a consolidation, merger or transfer of assets
that complies with Article 8; 

  

	 	(vi)	 any Refinancing by the Issuer or its Restricted Subsidiaries of any Indebtedness otherwise permitted to be so Refinanced by Clause 5.8.2 (vii); and

  

 S-10 

	 	(vii)	 so long as no Default shall have occurred and be continuing, Restricted Payments made by the Issuer or its Restricted Subsidiaries in an amount not to exceed $5
million in the aggregate at any time outstanding. 

 In no event shall a Restricted Payment made on the basis of
consolidated financial statements prepared in good faith in accordance with GAAP be subject to rescission or constitute a Default by reason of any requisite subsequent restatement of such financial statements which would have made such Restricted
Payment prohibited at the time that it was made. 
  

	5.10	 Limitation on Affiliate Transactions 

  

	 	5.10.1	 The Issuer shall not, and shall not permit any Restricted Subsidiary to, enter into or permit to exist any transaction (including the purchase, sale, lease or
exchange of any property, employee compensation arrangements or the rendering of any service) with any Affiliate of the Issuer (an “Affiliate Transaction”) unless the terms thereof, taken as a whole, (1) are no less favorable
to the Issuer or such Restricted Subsidiary than those that could be obtained at the time of such transaction in arm’s-length dealings with a Person who is not such an Affiliate, (2) if such Affiliate Transaction involves an amount in
excess of $1.0 million, are set forth in writing in an Officers’ Certificate delivered to the Holder, (3) if such Affiliate Transaction involves an amount in excess of $5.0 million, have been approved by a majority of the members of the
Board of Directors having no personal stake in such Affiliate Transaction and who are not employees or officers of, or appointed by, the Affiliate in question and (4) if such Affiliate Transaction involves an amount in excess of $25.0 million,
have been determined by a U.S. investment banking firm nationally recognized in the United States or by a nationally recognized expert in the U.S. telecommunications industry with experience in evaluating similar transactions to be fair, from a
financial standpoint, to the Issuer and its Restricted Subsidiaries. 

  

	 	5.10.2	 The provisions of the foregoing Clause 5.10.1 shall not apply to (i) any Restricted Payment permitted to be paid pursuant to Clause 5.9, (ii) any
issuance of securities, or other payments, awards or grants in cash, securities or otherwise pursuant to, or the funding of, employment benefit or compensation arrangements, stock options and stock ownership plans approved by the Board of Directors,
(iii) the grant of stock options or similar rights to employees and directors of the Issuer pursuant to plans approved by the Board of Directors, (iv) loans or advances to employees of the Issuer who are Affiliates in the ordinary course
of business, but in any event not to exceed $250,000 in the aggregate outstanding at any one time, (v) the payment of reasonable fees to directors of the Issuer and its Restricted Subsidiaries who are not employees of the Issuer or its
Restricted Subsidiaries, (vi) any Affiliate Transaction between the Issuer and a Restricted Subsidiary or between Restricted Subsidiaries, (vii) the issuance or sale of any Capital Stock (other than Disqualified Stock) or Strategic
Subordinated Indebtedness of the Issuer, (viii) any agreement as in effect as of May 17, 1999 or any amendment thereto or any transaction contemplated thereby (including pursuant to any amendment thereto) or in any replacement agreement
thereto so long as any such amendment or replacement agreement is not more disadvantageous to the Holders in any material respect than the original agreement as in effect on May 17, 1999, (ix) any employment agreement entered into by the
Issuer or any of its Restricted Subsidiaries in the ordinary course of business; (x) transactions pursuant to finance agreements or other banking, finance or insurance arrangements with Bancomer S.A. Institución de Banca Múltiple,
Grupo Financiero or its Affiliates, if the terms thereof are no less favorable to the Issuer than those that could be obtained at the time of such transaction in arm’s-length dealings with a Person who is not 

  

 S-11 

	 	 
an Affiliate and (xi) transactions pursuant to any agreement with any Permitted Holder or any Affiliate of a Permitted Holder relating to the provision
of telecommunications services or equipment so long as (A) the terms thereof are no less favorable to the Issuer than those that could be obtained at the time of such transaction in arm’s-length dealings with a Person who is not an
Affiliate and (B) if such Affiliate Transaction (other than the determination of settlement rates) involves an amount in excess of $15.0 million, have been approved by a majority of the members of the Board of Directors who are not employees or
officers of, or appointed by, the Affiliate in question. 

  

	5.11	 Limitation on Sales of Assets and Subsidiary Stock 

  

	 	5.11.1	 The Issuer shall not, and shall not permit any Restricted Subsidiary to, directly or indirectly, consummate any Asset Disposition unless (i) the Issuer or
such Restricted Subsidiary, as the case may be, receives consideration at the time of such Asset Disposition at least equal to the Fair Market Value (including as to the value of all non-cash consideration), as determined in good faith by the Board
of Directors, of the shares and assets subject to such Asset Disposition and (ii) at least 75% of the consideration thereof received by the Issuer or such Restricted Subsidiary, as the case may be, is in the form of cash or cash equivalents. In
the event and to the extent that the Net Available Cash received by the Issuer and its Restricted Subsidiaries from one or more Asset Dispositions occurring on or after May 17, 1999 in any period of 12 consecutive calendar months exceeds 10% of
Adjusted Consolidated Net Tangible Assets (determined as of the date closest to the commencement of such 12-month period for which a consolidated balance sheet has been filed with the SEC or provided to the Holder pursuant to Clause 5.6.2), then the
Issuer shall or shall cause the relevant Restricted Subsidiary: 

  

	 	(A)	 first, to the extent the Issuer elects (or is required by the terms of any Indebtedness), to prepay, repay, redeem or purchase Senior Indebtedness of the
Issuer or Indebtedness (other than any Disqualified Stock) of a Restricted Subsidiary (in each case other than Indebtedness owed to the Issuer or an Affiliate of the Issuer) within 360 days from the later of the date of such Asset Disposition or the
receipt of such Net Available Cash; 

  

	 	(B)	 second, to the extent of the balance of such Net Available Cash after application, if any, in accordance with clause (A), to the extent the Issuer elects,
to acquire Additional Assets within 360 days from the later of the date of such Asset Disposition or the receipt of such Net Available Cash; and 

  

	 	(C)	 third, to the extent of the balance of such Net Available Cash after application, if any, in accordance with clauses (A) and (B) (the
“Offer Excess Proceeds”), and subject to clause 5.11.2 below, to make an offer to the holders of the Notes (and to holders of other Senior Indebtedness designated by the Issuer) to purchase Notes (and such other Senior
Indebtedness) pursuant to and subject to the conditions set forth in clause 5.11.2 below; 

 provided,
however, that in connection with any prepayment, repayment or purchase of Indebtedness pursuant to clause (A) or (C) above, the Issuer or such Restricted Subsidiary shall permanently retire such Indebtedness and shall cause the
related loan commitment (if any) to be permanently reduced in an amount equal to the principal amount so prepaid, repaid or purchased. Notwithstanding the foregoing provisions of this paragraph, the Issuer and the Restricted Subsidiaries shall not
be required to apply any Net Available Cash in accordance with this paragraph to the extent that the aggregate Net Available Cash 

  

 S-12 

 
from all Asset Dispositions which are not so applied would be US$10 million or less. Pending application of Net Available Cash pursuant to this covenant,
such Net Available Cash shall be invested in Permitted Investments. 
 For the purposes of this covenant, the following are deemed to be cash
or cash equivalents: (x) the assumption of Indebtedness (other than Subordinated Obligations) of the Issuer or any Restricted Subsidiary and the release of the Issuer or such Restricted Subsidiary from all liability on such Indebtedness in
connection with such Asset Disposition and (y) securities received by the Issuer or any Restricted Subsidiary from the transferee that are promptly converted by the Issuer or such Restricted Subsidiary into cash. 
  

	 	5.11.2	 In the event of an Asset Disposition that requires an offer to purchase the Notes (and other Senior Indebtedness) pursuant to clause 5.11.1(C)
above, the Issuer will be required to purchase (an “Asset Sale Offer”), from all Holders of Notes issued under the Note Purchase Agreement, that aggregate principal amount of Notes as can be purchased by application of such
Offer Excess Proceeds at a price in cash equal to 100% of the principal amount thereof plus, in each case, accrued and unpaid interest, if any, to the purchase date. To the extent that the Offer Excess Proceeds are more than the aggregate purchase
price for the Notes tendered pursuant to an Asset Sale Offer, the Issuer or any Restricted Subsidiary may use such excess for general corporate purposes. If the aggregate purchase price for the Notes validly tendered and not withdrawn by holders
thereof exceeds the amount of Notes which can be purchased with the Offer Excess Proceeds, Notes to be purchased will be selected on a pro rata basis. Upon completion of such Asset Sale Offer, the amount of Offer Excess Proceeds shall be reset to
zero. 

 Notice of an Asset Sale Offer shall be given by the Issuer to the Holder not more than 20 Business Days after the
obligation to make such Asset Sale Offer arises. The Asset Sale Offer shall remain open from the time of mailing for at least 20 Business Days and until 5:00 p.m., New York City time, on the date fixed for Purchase of Notes validly tendered and not
withdrawn, which date shall be not later than the 30th Business Day following the notice of such Asset Sale Offer. 
  

	5.12	Limitation on Liens 

 The Issuer
shall not, and shall not permit any Restricted Subsidiary to directly or indirectly Incur or permit to exist any Lien of any nature whatsoever on any of its properties (including Capital Stock of a Restricted Subsidiary), whether owned at the
Closing Date or thereafter acquired, other than Permitted Liens, without effectively providing that the Notes shall be secured equally and ratably with (in the case of Senior Indebtedness) or prior to (in the case of Subordinated Obligations) the
obligations so secured for so long as such obligations are so secured. 
  

	5.13	Limitation on Lines of Business 

 The Issuer will not, and will not permit any Restricted Subsidiary to, engage in any business other than the telecommunications business. 
  

	5.14	Limitation of Guarantees by Restricted Subsidiaries 

 The Issuer will not permit any of its Restricted Subsidiaries, directly or indirectly, by way of the pledge of any intercompany note or otherwise, to assume, Guarantee or in any other manner become liable with respect
to any Indebtedness of the Issuer or any other Restricted Subsidiary of the Issuer (other than Indebtedness under Hedging Obligations in reliance on Clause 5.8.2 (vii) of 

  

 S-13 

 
Section 10.11), or to Incur any Indebtedness unless, in any such case (a) such Restricted Subsidiary executes and delivers a Guarantee (a
“Subsidiary Guarantee”) of payment of the Notes by such Restricted Subsidiary, (b) (x) if any such assumption, guarantee, incurrence or other liability of such Restricted Subsidiary is provided in respect of Senior
Indebtedness, the Subsidiary Guarantee shall be pari passu with such Senior Indebtedness and (y) if such assumption, guarantee, incurrence or other liability of such Restricted Subsidiary is provided in respect of any other Indebtedness, the
Subsidiary Guarantee shall be senior to such Subordinated Obligations, and (c) such Restricted Subsidiary waives and will not in any manner whatsoever claim or take the benefit or advantage of, any rights of reimbursement, indemnity or
subrogation or any other rights against the Issuer or any other Restricted Subsidiary as a result of any payment by such Restricted Subsidiary under its Subsidiary Guarantee; provided that this clause shall not be applicable to any Guarantee
of any Restricted Subsidiary that existed at the time such Person became a Restricted Subsidiary and was not incurred in connection with, or in contemplation of, such Person becoming a Restricted Subsidiary. 
  

	5.15	Limitation on the Sales or Issuance of Capital Stock of Restricted Subsidiaries 

 The Issuer shall not sell or otherwise dispose of any Capital Stock of a Restricted Subsidiary, and shall not permit any Restricted Subsidiary, directly or indirectly, to issue or sell or
otherwise dispose of any of its Capital Stock except (i) to the Issuer or a Restricted Subsidiary, (ii) if, immediately after giving effect to such issuance, sale or other disposition, neither the Issuer nor any of its Subsidiaries owns
any Capital Stock of such Restricted Subsidiary, (iii) if required, the issuance, transfer, conveyance, sale or other disposition of directors’ qualifying shares, (iv) in a transaction in which, or in connection with which, the Issuer
or a Restricted Subsidiary acquires at the same time sufficient Capital Stock of such Restricted Subsidiary to at least maintain the same percentage ownership interest it had prior to such transaction, (v) Disqualified Stock of a Restricted
Subsidiary Incurred to Refinance Disqualified Stock of such Restricted Subsidiary; provided, however, that the amounts of the redemption obligations of such Disqualified Stock shall not exceed the amounts of the redemption obligations
of, and such Disqualified Stock shall have redemption obligations no earlier than those required by, the Disqualified Stock being Refinanced or (vi) if, immediately after giving effect to such issuance, sale or other disposition, such
Restricted Subsidiary would no longer constitute a Restricted Subsidiary and any Investment in such Person remaining after giving effect thereto would have been permitted to be made under Section 10.13 if made on the date of such issuance, sale
or other disposition. 
 5.16 Limitation on Restrictions on Distributions from Restricted Subsidiaries 
 The Issuer shall not, and shall not permit any Restricted Subsidiary to, create or otherwise cause or permit to exist or become effective
any consensual encumbrance or restriction on the ability of any Restricted Subsidiary to (a) pay dividends or make any other distributions on its Capital Stock to the Issuer or a Restricted Subsidiary or pay any Indebtedness owed to the Issuer,
(b) make any loans or advances to the Issuer or (c) transfer any of its property or assets to the Issuer, except: 
  

	 	(i)	 any encumbrance or restriction pursuant to an agreement in effect at or entered into on May 17, 1999 and any amendments, modifications, restatements,
renewals or supplements thereof so long as the terms thereof are not materially less favorable to the Holders of the Notes than those in effect on May 17, 1999; 

  

	 	(ii)	 any encumbrance or restriction with respect to a Restricted Subsidiary pursuant to an agreement relating to any Indebtedness Incurred by such Restricted
Subsidiary on or prior 

  

 S-14 

	 	 
to the date on which such Restricted Subsidiary was acquired by the Issuer (other than Indebtedness Incurred as consideration in, or to provide all or any
portion of the funds or credit support utilized to consummate, the transaction or series of related transactions pursuant to which such Restricted Subsidiary became a Restricted Subsidiary or was acquired by the Issuer) and outstanding on such date;

  

	 	(iii)	 any encumbrance or restriction pursuant to an agreement effecting a Refinancing of Indebtedness Incurred pursuant to an agreement referred to in clause
(i) or (ii) of this covenant or this clause (iii) or contained in any amendment to an agreement referred to in clause (i) or (ii) of this covenant or this clause (iii); provided, however, that the encumbrances
and restrictions with respect to such Restricted Subsidiary contained in any such refinancing agreement or amendment are not materially less favorable to the Holders than encumbrances and restrictions with respect to such Restricted Subsidiary
contained in such predecessor agreements; 

  

	 	(iv)	 any such encumbrance or restriction consisting of customary non-assignment provisions in licensing agreements or leases governing leasehold interests to the
extent such provisions restrict the transfer of the license, lease or the property leased thereunder; 

  

	 	(v)	 in the case of clause (c) above, restrictions contained in security agreements or mortgages securing Indebtedness of a Restricted Subsidiary
to the extent such restrictions restrict the transfer of the property subject to such security agreements or mortgages; 

  

	 	(vi)	 any such encumbrance or restriction consisting of any restriction on the sale or other disposition of assets or property securing Indebtedness as a result of a
Permitted Lien on such assets or property; 

  

	 	(vii)	 any restriction with respect to a Restricted Subsidiary imposed pursuant to an agreement entered into for the sale or disposition of all or substantially all the
Capital Stock or assets of such Restricted Subsidiary pending the closing of such sale or disposition; 

  

	 	(viii)	 any encumbrance or restriction contained in security agreements or mortgages securing Indebtedness, or under any documents providing for Capital Lease
Obligations, of a Restricted Subsidiary which are not prohibited by Clause 5.12 to the extent such encumbrances or restrictions restrict the assignment or transfer of the property or assets subject to such security agreements or mortgages, or
subject to such Capital Lease Obligations; 

  

	 	(ix)	 any encumbrance or restriction existing under or by reason of applicable law or regulations; 

  

	 	(x)	 any encumbrance or restriction contained in contracts for sales of assets otherwise permitted by this Note; 

  

	 	(xi)	 any encumbrance or restriction pursuant to purchase money obligations for property acquired in the ordinary course of business that impose restrictions of the
nature described in clause (c) above in the property so acquired; 

  

	 	(xii)	 any encumbrance or restriction contained in any agreement pursuant to which Indebtedness is issued if (A) the encumbrance or restriction either
(1) applies only in the event of a payment default or (2) is contained in one or more credit agreements and (B) 

  

 S-15 

	 	 
the encumbrance or restriction is not materially more disadvantageous to the holders of the Notes than is customary in comparable financings (as determined
in good faith by the Issuer) based on market conditions in effect at the time such encumbrance or restriction is created; 

  

	 	(xiii)	 any encumbrance or restriction, with respect to a Restricted Subsidiary that is not a Restricted Subsidiary on the Closing Date, in existence at the time such
Person becomes a Restricted Subsidiary and not incurred in connection with, or in contemplation of, such Person becoming a Restricted Subsidiary; or 

  

	 	(xiv)	 customary provisions with respect to the disposition or distribution of assets or property in joint venture agreements and other similar agreements.

  

	5.17	 CONSOLIDATION, MERGER, SALE OF ASSETS 

  

	 	5.17.1	 The Issuer will not consolidate or merge with or into or convey, lease or transfer all or substantially all of its assets to, any Person in a single transaction
or through a series of transactions, unless: (a) the resulting, surviving or transferee person (the “Successor Company”) shall be a company organized and existing under the laws of Mexico, the United States or any State thereof
or the District of Columbia; (b) the Successor Company (if not the Issuer) shall expressly assume all of the obligations of the Issuer under the Notes, the Security Documents and the Note Purchase Agreement; (c) immediately after giving
effect to such transaction on a pro forma basis the Successor Company would be able to Incur an additional $1.00 of Indebtedness pursuant to Clause 5.8.1; (d) immediately after giving effect to such transaction on a pro forma basis (and
treating any Indebtedness which becomes an obligation of the Successor Company or any Subsidiary as a result of such transaction as having been incurred by such Successor Company or such Subsidiary at the time of such transaction), no Default shall
have occurred and be continuing; and (e) the Issuer or the surviving entity, as the case may be, shall have delivered to the Holders an Officers’ Certificate and Opinion of Counsel each stating that such consolidation, merger or transfer,
and such supplemental indenture (if any) complies with this covenant. 

  

	 	5.17.2	 Upon any consolidation or merger or any sale, assignment, conveyance, lease, transfer or other disposition of all or substantially all of the assets of the
Issuer in accordance with the foregoing, the Successor Company will succeed to, and be substituted for, and may exercise every right and power of, the Issuer under the Notes with the same effect as if such successor corporation had been named as the
Issuer therein and thereafter, the Issuer shall be discharged from all obligations and covenants under the Notes. 

  

	6.	 EVENTS OF DEFAULT 

  

	6.1	 If any of the following events (each, an “Event of Default”) shall occur and be continuing: 

  

	 	(a)	 the Issuer fails to pay any amount due under this Note when due and such failure continues for a period of 5 days from the date on which such payment is due; or

  

	 	(b)	 the Issuer fails duly to perform or observe any term of Clause 5.2, 5.7 or 5.11 hereof or Section 3 or 5 of the Security Agreement; or

  

 S-16 

	 	(c)	 the Issuer fails duly to perform or observe any other term or obligation contained in this Note or the Security Documents and such failure shall continue
unremedied for 30 days after written notice thereof shall have been given from the Holder to the Issuer; or 

  

	 	(d)	 any representation, warranty, certification or statement made or deemed to be made by the Issuer in the Note Purchase Agreement, the Security Documents, this
Note or any certificate, financial statement or other document delivered pursuant to or in connection with the issuance of this Note shall prove to have been incorrect in any material respect when made or repeated (or deemed made or repeated); or

  

	 	(e)	 Indebtedness of the Issuer or any Significant Subsidiary is not paid within any applicable grace period after final maturity or is accelerated by the holders
thereof because of a default and the total amount of such Indebtedness unpaid and accelerated exceeds $10 million and such defaulted payment is not made, waived or extended or such acceleration has not been rescinded or annulled, in each case within
30 days of such payment default or such acceleration, as the case may be; or 

  

	 	(f)	 the rights granted by the Concession shall for any reason be terminated and such termination shall not have been discharged, waived or stayed for a period of 60
days from such termination; or 

  

	 	(g)	 any final judgment or decree by a court or other adjudicatory authority of competent jurisdiction (not subject to appeal) for the payment of money in excess of
$10 million (which is not covered by third party insurance as to which the insurer has not disclaimed coverage) is entered against the Issuer or a Significant Subsidiary, remains outstanding for a period of 60 days following such judgment and is not
discharged, waived or stayed; 

  

	 	(h)	 the Issuer or any Significant Subsidiary of the Issuer pursuant to or under or within the meaning of any Bankruptcy Law: 

  

	 	(i)	 commences a voluntary case or proceeding; 

  

	 	(ii)	 consents to the making of a Bankruptcy Order in an involuntary case or proceeding or the commencement of any case against it; 

  

	 	(iii)	 consents to the appointment of a Custodian of it or for substantially all of its property; 

  

	 	(iv)	 makes a general assignment for the benefit of its creditors; 

  

	 	(v)	 files an answer or consent seeking reorganization or relief; 

  

	 	(vi)	 shall admit in writing its inability to pay its debts generally; or 

  

	 	(vii)	 consents to the filing of a petition in bankruptcy; 

  

	 	(i)	 a court of competent jurisdiction in any involuntary case or proceeding enters a Bankruptcy Order against the Issuer or any Significant Subsidiary and such
Bankruptcy Order remains unstayed and in effect for 60 consecutive days; or 

  

 S-17 

	 	(j)	 a custodian is appointed out of court with respect to the Issuer or any Significant Subsidiary or with respect to all or any substantial part of the assets or
properties of the Issuer or any Material Restricted Subsidiary; 

 then, and in every such event, and at any
time thereafter during the continuance of such event, the Holder of this Note may, by notice in writing given to the Issuer, declare this Note immediately due and payable whereupon the entire unpaid principal amount of this Note and all other
amounts payable in respect of this Note shall become and be forthwith due and payable, without presentation, demand, protest or further notice of any kind, all of which are hereby expressly waived by the Issuer. 
  

	7.	 NOTICES 

  

	7.1	 All notices and communications hereunder shall be made in writing and in English and, in the case of the Issuer or the Collateral Agent, shall be sent to
the Issuer or the Collateral Agent respectively at the address specified below or to such other address as the Issuer or the Collateral Agent has by prior notice specified to the Holders and, in the case of the Holder, shall be sent to the Holder at
the address specified on the register maintained by the Issuer: 

 Notice details of the Issuer: 
 Alestra, S. de R.L. de C.V. 
 Av. Lázaro Cárdenas No. 2321, 9th Floor 
 Col. Residencial San Agustin 

Garza García N.L. 66260, México 
 Attention: Mr. Patricio de la Garza 
 Fax: +818 625-2303 
 Notice details of the Collateral Agent: 
 Deutsche Bank Trust Company Americas 
 60 Wall Street 
 New York, New York 10005, U.S.A. 
 Attention: Trust and Securities Services – Project Finance

 Fax Number: 732-578-4636 
  

	7.2	 Every notice or other communication sent in accordance with Section 7.1 shall be effective upon receipt by a responsible party at the address or fax
number specified therein. 

  

	8.	 INDEMNITY 

  

	8.1	 The Issuer undertakes with the Holder that it will indemnify and hold harmless the Holder or any of the Holder’s Related Parties (each an
“Indemnified Person”) from and against any and all Loss which any of them may incur or which may be made against any of them, and will reimburse each Indemnified Person for all costs, charges and expenses which any Indemnified
Person may pay or incur in connection with investigating, disputing or defending any action or claim as such costs, charges and expenses are incurred. This indemnity will be in addition to any liability which the Issuer may otherwise have. The
Holder shall not have any duty or other obligation, whether as fiduciary or trustee for any of its Related Parties or otherwise, to recover any such payment or to account to any other Person for any amounts paid to it under this Clause 8.1.

  

 S-18 

	8.2	 The currency in which this Note is denominated (the “Contractual Currency”) is the sole currency of account and payment for all sums
payable by the Issuer in respect of this Note, including damages. Any amount received or recovered in a currency other than the Contractual Currency (whether as a result of, or of the enforcement of, a judgment, order of a court of any jurisdiction
or otherwise) by the Holder in respect of any sum expressed to be due to it from the Issuer under this Note shall only constitute a discharge to the Issuer to the extent of the amount in the Contractual Currency which the Holder is able to purchase
in accordance with normal banking procedures with the amount so received or recovered in that other currency on the date of that receipt or recovery (or, if it is not practicable to make that purchase on that date, on the first date on which it is
practicable to do so). If that amount is less than the amount in the Contractual Currency expressed to be due to the Holder in respect of this Note, the Issuer shall indemnify the Holder against any loss sustained by the Holder as a result, and if
that amount exceeds the amount in the Contractual Currency expressed to be due to the Holder in respect of this Note, the Holder shall indemnify the Issuer against any loss sustained by the Issuer as a result. In any event, the Issuer shall
indemnify the Holder against any cost of making such purchase. These indemnities constitute a separate and independent obligation from the Issuer’s other obligations, shall give rise to a separate and independent cause of action, shall apply
irrespective of any indulgence granted by the Holder and shall continue in full force and effect despite any other judgment, order, claim or proof for a liquidated amount in respect of any sum due in respect of this Note or any other judgment or
order. Any such loss aforesaid shall be deemed to constitute a loss suffered by the Holder and no proof or evidence of any actual loss will be required by the Issuer. 

  

	9.	 WAIVER AND INDEMNITIES 

 No
failure to exercise, and no delay in exercising, on the part of the Holder, any right hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or future exercise thereof or the exercise of any
other right. Rights hereunder shall be in addition to all other rights provided by law. No notice or demand given in any case shall constitute a waiver of rights to take other action in the same, similar or other instances without such notice or
demand. 
  

 S-19 

	10.	ASSIGNMENT AND TRANSFER 

  

	10.1	 The Issuer may not assign its rights or transfer its obligations under this Note, in whole or in part, without the prior written consent of the Holders of
all Notes, and any purported assignment or transfer without such consent shall be void. 

  

	10.2	 The Holder may transfer this Note to any Person, in whole or in part, without the consent of the Issuer. Any such transfer shall be recorded on the
register maintained by the Issuer. Upon due surrender for registration of transfer of this Note, duly endorsed in favor of the transferee, the Issuer will issue a new note for a like principal amount to the transferee, upon payment of any tax or
other governmental charge payable in connection with such issuance. Upon any such transfer, the transferee shall notify the Issuer and the Collateral Agent of the principal amount transferred and provide to the Collateral Agent the account
information described in Section 3.1. The Issuer and the Collateral Agent may treat the Holder as the owner hereof for all purposes. A Holder may exchange this Note for Notes in denominations of U.S.$ 100,000 or any multiple thereof upon
surrender of this Note to the Issuer. 

  

	11.	 PARTIAL INVALIDITY 

 If at
any time any provision of this Note is or becomes invalid, illegal or unenforceable in any respect in any jurisdiction, neither the validity, legality or enforceability of the remaining provisions hereof nor the validity, legality or enforceability
of such provision under the laws of any other jurisdiction shall in any way be affected or impaired thereby. 
  

	12.	 THE COLLATERAL AGENT 

  

	12.1	 The Holder hereby irrevocably authorizes the Collateral Agent, on behalf of and for the benefit of all Holders of the Notes, to be the agent for and
representative of the Holders with respect to the Security Documents, and to take such action on such Holder’s behalf and to exercise such powers, rights and remedies hereunder and under the Security Documents as are specifically delegated or
granted to the Collateral Agent by the terms hereof and thereof, together with such powers, rights and remedies as are reasonably incidental thereto. The Collateral Agent shall have only those duties and responsibilities that are expressly specified
herein and the Security Documents. The Collateral Agent may exercise such powers, rights and remedies and perform such duties by or through its agents or employees. The Collateral Agent hereby agrees to act upon the express conditions contained
herein and in the Security Documents, as applicable. The Collateral Agent shall not have, by reason hereof or any of the Security Documents, a fiduciary relationship in respect of any Holder; and nothing herein or any of the Security Documents,
expressed or implied, is intended to or shall be so construed as to impose upon the Collateral Agent any obligations in respect hereof or any of the Security Documents except as expressly set forth herein or therein. 

  

	12.2	 The provisions of this Section 12 are solely for the benefit of the Collateral Agent and the Holders and none of the Issuer or any of its affiliates
or related parties shall have any rights as a third party beneficiary of any of the provisions thereof. In performing its functions and duties hereunder, the Collateral Agent shall act solely as an agent of the Holders and does not assume and shall
not be deemed to have assumed any obligation towards or relationship of agency or trust with or for the Issuer or any of its affiliates or related parties. 

  

	12.3	 Anything contained in any of the Security Documents to the contrary notwithstanding, the Holder hereby agrees that (i) no Holder shall have any right
individually to realize upon any of the 

  

 S-20 

 
Collateral, it being understood and agreed that all powers, rights and remedies under the Security Documents may be exercised solely by the Collateral Agent,
and (ii) in the event of a foreclosure by Collateral Agent on any of the Collateral pursuant to a public or private sale, the Collateral Agent or any Holder may be the purchaser of any or all of such Collateral at any such sale and the
Collateral Agent, as agent for and representative of the Holders collectively as secured parties (but not any Holder or Holders in its or their respective individual capacities unless Requisite Holders (as defined in the Security Agreement) shall
otherwise agree in writing) shall be entitled, for the purpose of bidding and making settlement or payment of the purchase price for all or any portion of the Collateral sold at any such public sale, to use and apply any of the Obligations as a
credit on account of the purchase price for any collateral payable by Collateral Agent at such sale. The Holder, by accepting this Note, shall be deemed to have acknowledged receipt of, and consented to and approved, each Security Document and each
other document required to be approved by the Collateral Agent or any Requisite Holders or Holders, as applicable. Without limiting the foregoing, the Holder agrees (i) to the limitations regarding the Collateral Agent’s liabilities set
forth in the Security Agreement, and (ii) to indemnify and hold harmless the Collateral Agent pursuant to the terms of the Security Agreement. 
  

	12.4	 The Holder represents and warrants that it has made its own independent investigation of the financial condition and affairs of the Issuer and its
affiliates in connection herewith and that it has made and shall continue to make its own appraisal of the creditworthiness of the Issuer and its affiliates. The Collateral Agent shall not have any duty or responsibility, either initially or on a
continuing basis, to make any such investigation or any such appraisal on behalf of the Holders or to provide any Holder with any credit or other information with respect thereto, whether coming into its possession before the issuance of the Notes
or at any time or times thereafter, and the Collateral Agent shall not have any responsibility with respect to the accuracy of or the completeness of any information provided to the Holders. 

  

	13.	 LAW AND JURISDICTION 

  

	13.1	 This Note is governed by, and shall be construed in accordance with, the law of the State of New York. 

  

	13.2	 The Issuer hereby irrevocably consents to the jurisdiction of any court of the State of New York or any United States federal court sitting in the Borough
of Manhattan, New York City, New York, United States, and any appellate court from any thereof in respect of any actions or proceedings brought against it hereunder, and waives any immunity from the jurisdiction of such courts over any suit, action
or proceeding that may be brought in connection with the Note Purchase Agreement, the Security Documents or the Notes. The Issuer hereby irrevocably waives, to the fullest extent permitted by law, any objection to any suit, action, or proceeding
that may be brought in connection with the Note Purchase Agreement, the Security Documents or the Notes in such courts whether on the grounds of venue, residence or domicile or on the ground that any such suit, action or proceeding has been brought
in an inconvenient forum. Additionally, the Issuer hereby waives the right to trial by jury and to assert counterclaims in any such proceedings and agrees that final judgment in any such suit, action or proceeding brought in such court shall be
conclusive and binding upon it and may be enforced in any court of the jurisdiction to which the Issuer is subject by a suit upon such judgment. 

  

	13.3	 The Issuer agrees that service of all writs, process and summonses in any suit, action or proceeding brought in connection with the Note Purchase
Agreement, the Security Documents or the Notes against the Issuer in any court of the State of New York or any United States federal court sitting in the Borough of Manhattan, New York City, New York, United States, may be 

  

 S-21 

	 	 
made upon CT Corporation System at 111 Eighth Avenue, 13th Floor, New York, New York 10011, whom the Issuer irrevocably appoints as its authorized agent for
service of process. The Issuer represents and warrants that CT Corporation System has agreed to act as the agent for service of process for the Issuer. The Issuer agrees that such appointment shall be irrevocable so long as any of the Notes remain
outstanding or until the irrevocable appointment by the Issuer of a successor in The City of New York as its authorized agent for such purpose and the acceptance of such appointment by such successor. The Issuer further agrees to take any and all
action, including the filing of any and all documents and instruments, that may be necessary to continue such appointment in full force and effect as aforesaid. If CT Corporation System shall cease to act as the agent for service of process for the
Issuer, the Issuer shall appoint without delay another such agent and provide prompt written notice to the Holder of such appointment. With respect to any such action in any court of the State of New York or any United States federal court in the
Borough of Manhattan, New York City, New York, United States, service of process upon CT Corporation System, as the authorized agent of the Issuer for service of process, and written notice of such service to the Issuer shall be deemed, in every
respect, effective service of process upon the Issuer. Nothing in this Clause 13.3 shall affect the right of any party to serve legal process in any other manner permitted by law. 

  

	14.	 CERTAIN DEFINED TERMS. 

 “Additional Assets” means (i) telecommunications assets (other than Indebtedness and Capital Stock); (ii) the Capital Stock of a Person that becomes a Restricted Subsidiary as a result of the acquisition of such
Capital Stock by the Issuer or another Restricted Subsidiary or (iii) Capital Stock constituting a minority interest in any Person that at such time is a Restricted Subsidiary; provided, however, that any such Restricted Subsidiary described in
clauses (ii) or (iii) above is primarily engaged in a telecommunications business. 
 “Adjusted Consolidated Net Tangible
Assets” means the total amount of assets of the Issuer and its Restricted Subsidiaries (less applicable depreciation, amortization and other valuation reserves), except to the extent resulting from write-ups of capital assets (excluding
write-ups in connection with accounting for acquisitions in conformity with GAAP), after deducting therefrom (i) all current liabilities of the Issuer and its Restricted Subsidiaries (excluding intercompany items) and (ii) all goodwill,
trade names, trademarks, patents, unamortized debt discount and expense and other like intangibles, all as set forth in the most recent quarterly or annual consolidated balance sheet of the Issuer and its Restricted Subsidiaries, prepared in
conformity with GAAP and filed with the SEC or provided to the Holder pursuant to Clause 5.6.2. 
 “Affiliate” of any
specified Person means any other Person, directly or indirectly, controlling or controlled by or under direct or indirect common control with such specified Person. For the purposes of this definition, “control” when used with respect to
any Person means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled”
have meanings correlative to the foregoing. For purposes of Clauses 5.9, 5.10 and 5.11 only, “Affiliate” shall also mean any beneficial owner of Capital Stock representing 10% or more of the total voting power of the Voting Stock (on a
fully diluted basis) of the Issuer or of rights or warrants to purchase such Capital Stock (whether or not currently exercisable) and any Person 
 “Asset Disposition” means any sale, lease, transfer or other disposition (or series of related sales, leases, transfers or dispositions) by the Issuer or any Restricted Subsidiary, including any disposition by means of a
merger, consolidation or similar transaction (each referred to for the purposes of this definition as a “disposition”), of (i) any shares of Capital Stock of a Restricted Subsidiary (other than directors’ 

  

 S-22 

 
qualifying shares or shares required by applicable law to be held by a Person other than the Issuer or a Restricted Subsidiary), (ii) all or
substantially all the assets of any division or line of business of the Issuer or any Restricted Subsidiary or (iii) any other assets of the Issuer or any Restricted Subsidiary outside of the ordinary course of business of the Issuer or such
Restricted Subsidiary; provided, however, that the following shall not constitute Asset Dispositions: (A) a disposition by a Restricted Subsidiary to the Issuer or by the Issuer or a Restricted Subsidiary to another Restricted Subsidiary,
(B) for purposes of Section 10.15 only, a disposition that constitutes a Restricted Payment permitted by Section 10.13, (C) exchanges of telecommunications assets for other telecommunications assets where the Fair Market Value
(as determined by the Issuer’s Board of Directors) of the telecommunications assets received is at least equal to the Fair Market Value of the telecommunications assets disposed of or, if less, the difference is received in cash and such cash
is Net Available Cash, (D) a disposition that is governed by the provisions under Clause 5.17, (E) a disposition of obsolete, worn-out, damaged or otherwise unsuitable or unnecessary equipment or other obsolete assets,
(F) dispositions with respect to sales of capacity and rights of use in the Issuer’s network, (G) disposition resulting from the foreclosure of a Permitted Lien; (H) dispositions in connection with the surrender or waiver of
contract rights or the settlement, release or surrender of contract, tort or other claims of any kind, (I) a sale-leaseback of assets within one year of the acquisition of such assets, (J) the grant of any license of patents, trademarks,
registration therefor and other similar intellectual property, (K) the designation of a Restricted Subsidiary as an Unrestricted Subsidiary, (L) any Equity Offering by the Issuer, (M) a transaction or series of transactions that
results in a Change of Control, (N) the sale or other disposition of Temporary Cash Investments, (O) a Restricted Payment permitted by or a Permitted Investment that is not prohibited by Clause 5.9, or (P) dispositions of assets with
a fair value of less than $1,000,000 in any fiscal year. 
 “AT&T Notice and Consent” means the Notice and Consent dated
on or about the date hereof, by and among the Issuer and AT&T Corp. 
 “Average Life” means, as of the date of
determination, with respect to any Indebtedness or Preferred Stock, the quotient obtained by dividing (i) the sum of the products of numbers of years from the date of determination to the dates of each successive scheduled principal payment of
such Indebtedness or redemption or similar payment with respect to such Preferred Stock multiplied by the amount of such payment by (ii) the sum of all such payments. 
 “Bankruptcy Law” means Title 11, United States Code, the Mexican Law of Commercial Reorganizations (Ley de Concursos Mercantiles) or any similar federal or state
law relating to bankruptcy, insolvency, receivership, winding-up, suspension of payments, liquidation, reorganization or relief of debtors or the law of any other jurisdiction relating to bankruptcy, insolvency, receivership, winding-up, suspension
of payments, liquidation, reorganization or relief of debtors or any amendment to, succession to or change in any such law. 
 “Bankruptcy Order” means any court order made in a proceeding pursuant to or within the meaning of any Bankruptcy Law, containing an adjudication of bankruptcy or insolvency, or providing for liquidation, receivership,
winding-up, dissolution, “concordate” or reorganization, or appointing a Custodian of a debtor or of all or any substantial part of a debtor’s property, or providing for the staying, arrangement, adjustment or composition of
indebtedness or other relief of a debtor. 
 “Board” or “Board of Directors” means the Board of Directors
of the Issuer or any committee thereof duly authorized to act on behalf of such Board. 
 “Business Day” means each day
other than Saturday or Sunday which is not a legal holiday in the city of New York, the United States or Mexico. 
  

 S-23 

 “Capital Lease Obligations” means an obligation that is required to be classified and
accounted for as a capital lease for financial reporting purposes in accordance with GAAP, and the amount of Indebtedness represented by such obligation shall be the capitalized amount of such obligation determined in accordance with GAAP; and the
Stated Maturity thereof shall be the date of the last payment of rent or any other amount due under such lease prior to the first date upon which such lease may be terminated by the lessee without payment of a penalty. 
 “Capital Stock” of any Person means any and all shares, interests, rights to purchase, warrants, options, participations, partes
sociales, or other equivalents of or interests in (however designated) equity of such Person, including any Preferred Stock, but excluding any debt securities convertible into such equity. 
 “Change of Control” means the occurrence of any of the following events: 
 (i) at any time, other than as a result of a Permitted Merger, (a) any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act), other than one or more Permitted Holders, shall
become the “beneficial owner” (as defined in Rules l3d-3 and l3d-5 under the Exchange Act), directly or indirectly, of more than 35% of the total voting power of the Voting Stock of the Issuer and (b) the Permitted Holders
beneficially shall own, directly or indirectly, in the aggregate a lesser percentage of the total voting power of the Voting Stock of the Issuer than such other person and do not have the right or ability by voting power, contract or otherwise to
elect or designate for election a majority of the Board of Directors (for the purposes of this clause (i), such other person shall be deemed to beneficially own any Voting Stock of a specified corporation held by a parent corporation, if such other
person is the beneficial owner, directly or indirectly, of more than 35% of the voting power of the Voting Stock of such parent corporation and the Permitted Holders beneficially own, directly or indirectly, in the aggregate a lesser percentage of
the voting power of the Voting Stock of such parent corporation and do not have the right or ability by voting power, contract or otherwise to elect or designate for election a majority of the board of directors of such parent corporation);

 (ii) whether as a result of a Permitted Merger or not, during any period of two consecutive years, individuals who at the
beginning of such period constituted the Board of Directors (together with any new directors whose election or whose nomination for election by the shareholders of the Issuer was approved by a vote of 66-2/3% of the directors of the Issuer then
still in office who were either directors at the beginning of such period or whose election or nomination for election was previously so approved or who are designees of the Permitted Holders) cease for any reason to constitute a majority of the
Board of Directors then in office; 
 (iii) whether as a result of a Permitted Merger or not, AT&T ceases to be the
“beneficial owner” (as defined in clause (i) above), directly or indirectly, of 24.5% or more in the aggregate of the total voting power of the Voting Stock of the Issuer, whether as a result of issuance of securities of the Issuer,
any merger, consolidation, liquidation or dissolution of the Issuer, any direct or indirect transfer of securities by the Issuer or otherwise; provided however, that the Series N Limited Voting Rights Stock shall not be included in any calculation
of total voting power of the voting equity interests of the Issuer or any Successor Company for the purposes of this clause (iii) regardless of whether the Permitted Holders hold a number of shares of the Capital Stock of the Issuer sufficient
to allow the Permitted Holders to elect a majority of the directors of the Board of Directors; 
 (iv) other than, in each
case, as a result of a Permitted Merger, the merger or consolidation of the Issuer with or into another Person or the merger of another Person with or into the Issuer, or the sale of all or substantially all the assets of the Issuer and its
Subsidiaries taken as a whole to another Person (in each case other than a Person that is controlled by the Permitted Holders), and, in the case of any such merger or consolidation, the securities of the Issuer that are outstanding immediately

  

 S-24 

 
prior to such transaction and which represent 100% of the aggregate voting power of the Voting Stock of the Issuer are changed into or exchanged for cash,
securities or property, unless pursuant to such transaction such securities are changed into or exchanged for, in addition to any other consideration, securities of the surviving corporation that represent immediately after such transaction, at
least a majority of the aggregate voting power of the Voting Stock of the surviving corporation; or 
 (v) any transaction or
series of transactions, (i) where Onexa directly or Onexa’s Parent(s) or any Affiliate of Onexa indirectly transfers 50% or more of its Equity Interests to one or more Third Parties, regardless of whether such Transaction includes
AT&T’s Equity Interest or (ii) resulting in any Material Equity Interest in the Partnership being held by a Global Competitor. Except where defined in this Note or where modified by this Note, the capitalized terms used in this clause
(v) shall have the meaning given them in the Second Amended and Restated Joint Venture Agreement dated as of October 17, 1996, establishing Alestra for the purpose of providing telecommunications services in the United Mexican States
(including any amendment, addendum or supplement thereto prior to the date hereof). 
 “Collateral” has the meaning
specified in the Security Agreement. 
 “Collateral Agent” means Deutsche Bank Trust Company Americas, as collateral agent
under the Security Agreement. 
 “Concession” means the long distance telecommunications concession and the local service
concession granted to the Issuer by the Secretaria de Communicaciones y Transportes. 
 “Consolidated Interest
Expense” means, for any period, the consolidated interest expense of the Issuer and its consolidated Restricted Subsidiaries, plus, to the extent not included in such total interest expense, and to the extent incurred by the Issuer or its
Restricted Subsidiaries, without duplication, (i) interest expense attributable to capital leases, (ii) amortization of debt discount, (iii) capitalized interest, (iv) non-cash interest expenses, (v) commissions, discounts
and other fees and charges owed with respect to letters of credit and bankers’ acceptance financing, (vi) net costs associated with Hedging Obligations (including amortization of fees), (vii) Preferred Stock dividends in respect of
all Preferred Stock held by Persons other than the Issuer or a Wholly Owned Subsidiary, (viii) interest incurred in connection with Investments in discontinued operations, (ix) interest accruing on any Indebtedness of any other Person to
the extent such Indebtedness is Guaranteed by (or secured by the assets of) the Issuer or any Restricted Subsidiary and (x) the cash contributions to any employee stock ownership plan or similar trust to the extent such contributions are used
by such plan or trust to pay interest or fees to any Person (other than the Issuer) in connection with Indebtedness Incurred by such plan or trust. Consolidated Interest Expense shall not include amortization of debt issuance cost. 
 “Consolidated Leverage Ratio” as of any date of determination means the ratio of (i) the aggregate amount of Indebtedness of the
Issuer and its Restricted Subsidiaries calculated on a consolidated basis as of the end of the most recent fiscal quarter ending at least 45 days prior to the date of such determination (such fiscal quarter being herein called the “most
recent fiscal quarter”) to (ii) EBITDA for the most recent fiscal quarter (the “Reference Period”) for which financial statements of the Issuer have been filed with the SEC or provided to the Holder pursuant to clause
5.6.2 multiplied by four; provided, however, that 
 (1) if the Issuer or any Restricted Subsidiary has Incurred any
Indebtedness since the end of the Reference Period that remains outstanding or if the transaction giving rise to the need to calculate the Consolidated Leverage Ratio is an Incurrence of Indebtedness, the amount of such Indebtedness shall be
calculated after giving effect on a pro forma basis to such Indebtedness as if such Indebtedness had been outstanding as of the end of the most recent fiscal quarter and to the discharge of 

  

 S-25 

 
any other Indebtedness repaid, repurchased, defeased or otherwise discharged with the proceeds of such new Indebtedness as if such new Indebtedness had been
Incurred and such other Indebtedness had been discharged as of the end of such fiscal quarter, 
 (2) if the Issuer or any
Restricted Subsidiary has repaid, repurchased, defeased or otherwise discharged any Indebtedness that was outstanding as of the end of such fiscal quarter or if any Indebtedness that was outstanding as of the end of such fiscal quarter is to be
repaid, repurchased, defeased or otherwise discharged on the date of the transaction giving rise to the need to calculate the Consolidated Leverage Ratio (other than, in each case, Indebtedness Incurred under any revolving credit agreement), the
aggregate amount of Indebtedness shall be calculated on a pro forma basis as if such discharge has occurred as of the end of such fiscal quarter and EBITDA shall be calculated as if the Issuer or such Restricted Subsidiary had not earned the
interest income, if any, actually earned during the Reference Period in respect of cash or Temporary Cash Investments used to repay, repurchase, defease or otherwise discharge such Indebtedness; 
 (3) if since the beginning of the Reference Period the Issuer or any Restricted Subsidiary shall have made any Asset Disposition, the
EBITDA for the Reference Period shall be reduced by an amount equal to the EBITDA (if positive) directly attributable to the assets which are the subject of such Asset Disposition for the Reference Period or increased by an amount equal to the
EBITDA (if negative) directly attributable thereto for the Reference Period; 
 (4) if since the beginning of the Reference
Period the Issuer or any Restricted Subsidiary (by merger or otherwise) shall have made an Investment in any Restricted Subsidiary (or any Person which becomes a Restricted Subsidiary) or an acquisition of assets (including by way of merger or
consolidation), EBITDA for the Reference Period shall be calculated after giving pro forma effect thereto (including the Incurrence of any Indebtedness) as if such Investment or acquisition occurred on the first day of the Reference Period; and

 (5) if since the beginning of the Reference Period any Person that subsequently became a Restricted Subsidiary or was
merged with or into the Issuer or any Restricted Subsidiary since the beginning of such Reference Period shall have made any Asset Disposition, any Investment or acquisition of assets that would have required an adjustment pursuant to clause
(3) or (4) above if made by the Issuer or a Restricted Subsidiary during the Reference Period, EBITDA for the Reference Period shall be calculated after giving pro forma effect thereto as if such Asset Disposition, Investment or
acquisition occurred on the first day of the Reference Period. 
 “Consolidated Net Income” means, for any period, the net
income of the Issuer and its consolidated Subsidiaries for such period determined in accordance with GAAP; provided, however, that there shall not be included in such Consolidated Net Income (to the extent included in calculating
consolidated net income): 
 (i) any net income of any Person (other than the Issuer) if such Person is not a Restricted
Subsidiary, except that (A) subject to the exclusion contained in clause (iv) below, the Issuer’s equity in the net income of any such Person for such period shall be included in such Consolidated Net Income up to the aggregate amount
of cash actually distributed by such Person during such period to the Issuer or a Restricted Subsidiary as a dividend or other distribution (subject, in the case of a dividend or other distribution paid to a Restricted Subsidiary, to the limitations
contained in clause (iii) below) and (B) the Issuer’s equity in a net loss of any such Person for such period shall be included in determining such Consolidated Net Income; 
  

 S-26 

 (ii) any net income (or loss) of any Person acquired by the Issuer or a Subsidiary in a
pooling of interests transaction for any period prior to the date of such acquisition; 
 (iii) any net income of any
Restricted Subsidiary if such Restricted Subsidiary is subject to restrictions, directly or indirectly, on the payment of dividends or the making of distributions by such Restricted Subsidiary, directly or indirectly, to the Issuer, except that
(A) subject to the exclusion contained in clause (iv) below, the Issuer’s equity in the net income of any such Restricted Subsidiary for such period shall be included in such Consolidated Net Income up to the aggregate amount of cash
actually distributed by such Restricted Subsidiary during such period to the Issuer or another Restricted Subsidiary as a dividend or other distribution (subject, in the case of a dividend or other distribution paid to another Restricted Subsidiary,
to the limitation contained in this clause) and (B) the Issuer’s equity in a net loss of any such Restricted Subsidiary for such period shall be included in determining such Consolidated Net Income; 
 (iv) any gain (but not loss) realized upon the sale or other disposition of any assets of the Issuer, its consolidated Subsidiaries or
any other Person (including pursuant to any sale-and-leaseback arrangement) which is not sold or otherwise disposed of in the ordinary course of business and any gain (but not loss) realized upon the sale or other disposition of any Capital Stock of
any Person; 
 (v) extraordinary gains (but not losses); 
 (vi) any net income to the extent attributable to a Telecommunications Capital Asset Disposition; and 
 (vii) the cumulative effect of a change in accounting principles. 
 “Cumulative Interest Expense” means, at any date of determination, the aggregate amount of Consolidated Interest Expense Incurred by the Issuer from and after the first day of
the fiscal quarter of the Issuer following the end of the most recent fiscal quarter of the Issuer preceding the Closing Date to the end of the most recent fiscal quarter of the Issuer ending at least 45 days prior to the taking of any action for
the purpose of which the determination is being made. 
 “Currency Agreement” means in respect of a Person any foreign
exchange contract, currency swap agreement or other similar agreement designed solely to protect such Person against fluctuations in currency values. 
 “Custodian” means any receiver, interim receiver, receiver and manager, receiver-manager, trustee, assignee, liquidator, sequestrator, síndico or similar official under any Bankruptcy
Law or any other law respecting secured creditors and the enforcement of their security or any other person with like powers whether appointed judicially or out of court and whether pursuant to an interim or final appointment. 
 “Default” means any event that is, or after notice or passage of time or both would be, an Event of Default. 
 “Determination Agent” means the Bank, so long as the Bank is a Holder of any Note, and otherwise such Holder of a Note as is designated
by the Bank by a notice in writing to the Collateral Agent and the Issuer. 
 “Disqualified Stock” means, with respect to
any Person, any Capital Stock which by its terms (or by the terms of any security into which it is convertible or for which it is exchangeable) or upon the happening of any event (i) matures or is mandatorily redeemable pursuant to a sinking
fund obligation or otherwise, 

  

 S-27 

 
(ii) is convertible or exchangeable for Indebtedness or Disqualified Stock or (iii) is redeemable or must be purchased, upon the occurrence of certain
events or otherwise, by such Person at the option of the holder thereof, in whole or in part, in each case on or prior to the first anniversary of the earlier of the Maturity Date of this Note and the date on which this Note has been repaid in full.

 “EBITDA” for any period means the (i) sum of Consolidated Net Income, plus Consolidated Interest Expense (to the
extent such amount was deducted in calculating Consolidated Net Income) plus the following to the extent deducted in calculating such Consolidated Net Income: (a) all income and asset tax expense of the Issuer and its consolidated Restricted
Subsidiaries, (b) depreciation expense of the Issuer and its consolidated Restricted Subsidiaries, (c) amortization expense of the Issuer and its consolidated Restricted Subsidiaries (excluding amortization expense attributable to a
prepaid cash item that was paid in a prior period), (d) foreign exchange losses that are reported below the “operating loss (profit)” (or equivalent) line on the Issuer’s statement of results of operations, (e) all other
non-cash charges of the Issuer and its consolidated Restricted Subsidiaries (including monetary losses and equity in losses of Persons that are not Restricted Subsidiaries but excluding any such non-cash charge to the extent that it represents an
accrual of or reserve for cash expenditures in any future period) and (f) other expenses, in each case for such period minus (ii) the sum of the following to the extent increasing Consolidated Net Income: (a) foreign exchange gains
that are reported below the “operating loss (profit)” (or equivalent) line on the Issuer’s statement of results of operations, (b) other income and (c) all other non-cash items of the Issuer and its consolidated Restricted
Subsidiaries (including monetary gains and equity in earnings of Persons that are not Restricted Subsidiaries but excluding any such non-cash item to the extent that it results in the receipt of cash payments in any future period). Notwithstanding
the foregoing, the provision for taxes based on the income or profits of, and the depreciation and amortization and non-cash charges of, a Restricted Subsidiary shall be added to Consolidated Net Income to compute EBITDA only to the extent (and in
the same proportion) that the net income of such Restricted Subsidiary was included in calculating Consolidated Net Income and only if a corresponding amount would be permitted at the date of determination to be dividended to the Issuer by such
Restricted Subsidiary without prior approval (that has not been obtained), pursuant to the terms of its charter and all agreements, instruments, judgments, decrees, orders, statutes, rules and governmental regulations applicable to such Restricted
Subsidiary or its stockholders. 
 “Equity Offering” means any public or private offering by the Issuer for cash of Capital
Stock (other than Disqualified Stock). 
 “Existing Notes” means (i) all Indebtedness incurred by the Issuer under the
indentures dated May 17, 1999 and (ii) the Senior Notes due 2010 issued under the indenture dated as of •, 2003. 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 “Fair Market Value”
means, with respect to any asset or property (including Capital Stock), the price that could be negotiated in an arm’s-length free market transaction, for cash, between a willing seller and a willing buyer, neither of whom is under pressure or
compulsion to complete the transaction. Fair Market Value shall be determined by the Board of Directors of the Issuer acting in good faith and shall be evidenced by a resolution of the Board of Directors of the Issuer delivered to the Holder.

 “GAAP” means generally accepted accounting principles in Mexico as in effect on the Closing Date. All ratios and
computations shall be computed in conformity with GAAP applied on a consistent basis and using constant peso calculations. 
 “Guarantee” means any obligation, contingent or otherwise, of any Person directly or indirectly guaranteeing any Indebtedness of any other Person and any obligation, direct or indirect, contingent or 
  

 S-28 

 
otherwise, of such other Person (i) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness (whether arising by
virtue of partnership arrangements, or by agreements to keep-well, to purchase assets, goods, securities or services, to take-or-pay or to maintain financial statement conditions or otherwise) or (ii) entered into for the purpose of assuring in
any other manner the obligee of such Indebtedness of the payment thereof or to protect such obligee against loss in respect thereof (in whole or in part); provided, however, that the term “Guarantee” shall not include endorsements for
collection or deposit in the ordinary course of business. The term “Guarantee” used as a verb has a corresponding meaning. The term “Guarantor” shall mean any Person Guaranteeing any obligation. 
 “Hedging Obligations” of any Person means the obligations of such Person pursuant to any Interest Rate Agreement or Currency Agreement.

 “Incur” means issue, assume, Guarantee, incur or otherwise become liable for, provided, however, that any Indebtedness or
Capital Stock of a Person existing at the time such Person becomes a Subsidiary (whether by merger, consolidation, acquisition or otherwise) shall be deemed to be Incurred by such Subsidiary at the time it becomes a Subsidiary. The term
“Incurrence” when used as a noun shall have a correlative meaning. The accretion of principal of a non-interest bearing or other discount security, the payment of interest on any Indebtedness in the form of additional Indebtedness
with the same terms and the payment of dividends on Disqualified Stock or Preferred Stock in the form of additional shares of the same class of Disqualified Stock or Preferred Stock shall not be deemed the Incurrence of Indebtedness. 
 “Indebtedness” means, with respect to any Person on any date of determination (without duplication): 
 (i) the principal in respect of (A) indebtedness of such Person for money borrowed and (B) indebtedness evidenced by notes,
debentures, bonds or other similar instruments for the payment of which such Person is responsible or liable, including, in each case, any premium on such indebtedness to the extent such premium has become due and payable; 
 (ii) all Capital Lease Obligations of such Person; 
 (iii) all obligations of such Person issued or assumed as the deferred purchase price of property, all conditional sale obligations of such Person and all obligations of such Person under any
title retention agreement (but excluding trade accounts payable arising in the ordinary course of business and other monetary obligations to trade creditors existing on the Closing Date); 
 (iv) all obligations of such Person for the reimbursement of any obligor on any letter of credit, banker’s acceptance or similar
credit transaction (other than obligations with respect to letters of credit securing obligations (other than obligations described in clauses (i) through (iii) above) entered into in the ordinary course of business of such Person to the
extent such letters of credit are not drawn upon or, if and to the extent drawn upon, such drawing is reimbursed no later than the 20th Business Day following payment on the letter of credit); 
 (v) the amount of all obligations of such Person with respect to the redemption, repayment or other repurchase of any Disqualified Stock
or, with respect to any Subsidiary of such Person, the liquidation preference with respect to, any Preferred Stock (but excluding, in each case, any accrued dividends); 
 (vi) all obligations of the type referred to in clauses (i) through (v) of other Persons and all dividends of other Persons for the payment of which, in either case, such Person is
responsible or liable, directly or indirectly, as obligor, guarantor or otherwise, including by means of any Guarantee; 
  

 S-29 

 (vii) all obligations of the type referred to in clauses (i) through (vi) of
other Persons secured by any Lien on any property or asset of such Person (whether or not such obligation is assumed by such Person), the amount of such obligation being deemed to be the lesser of the value of such property or assets or the amount
of the obligation so secured; and 
 (viii) to the extent not otherwise included in this definition, Hedging Obligations of
such Person. 
 The amount of Indebtedness of any Person at any date shall be the outstanding balance at such date of all unconditional
obligations as described above and the maximum liability, upon the occurrence of the contingency giving rise to the obligation, of any contingent obligations at such date; provided, however, that (A) the amount outstanding at any time of any
Indebtedness issued with original issue discount is the amount of the liability in respect thereof determined in accordance with GAAP and (B) Indebtedness shall not include any liability for foreign, Federal, state, local or other taxes. For
purposes of calculating the Consolidated Leverage Ratio, the amount of Indebtedness outstanding at any time of determination for Hedging Obligations shall not exceed the amount of net payments due thereunder. 
 “Interest Rate Agreement” means in respect of a Person any interest rate swap agreement, interest rate floor or cap agreement or other
financial agreement or arrangement designed solely to protect such Person against fluctuations in interest rates. 
 “Investment” in any Person means any direct or indirect advance, loan (other than advances to customers in the ordinary course of business that are recorded as accounts receivable on the balance sheet of such Person) or
other extensions of credit (including by way of Guarantee or similar arrangement or other commercially reasonable extension of trade credit) or capital contribution to (by means of any transfer of cash or other property to others or any payment for
property or services for the account or use of others), or any purchase or acquisition of Capital Stock, Indebtedness or other similar instruments issued by such Person. For purposes of the definition of “Unrestricted Subsidiary”, the
definition of “Restricted Payment” and Clause 5.9, (i) “Investment” shall include the portion (proportionate to the Issuer’s equity interest in such Subsidiary) of the fair value of the net assets of any
Subsidiary of the Issuer at the time that such Subsidiary is designated an Unrestricted Subsidiary; provided, however, that upon a redesignation of such Subsidiary as a Restricted Subsidiary, the Issuer shall be deemed to continue to have a
permanent “Investment” in an Unrestricted Subsidiary equal to an amount (if positive) equal to (x) the Issuer’s “Investment” in such Subsidiary at the time of such redesignation less (y) the portion (proportionate
to the Issuer’s equity interest in such Subsidiary) of the fair value of the net assets of such Subsidiary at the time of such redesignation; and (ii) any property transferred to or from an Unrestricted Subsidiary shall be valued at its
Fair Market Value at the time of such transfer, in each case as determined in good faith by the Board of Directors. 
 “Lien” means any mortgage, pledge, security interest, encumbrance, lien or charge of any kind (including any conditional sale or other title retention agreement or lease in the nature thereof). 
 “Loss” means any liability, damages, cost, loss or expense (including, without limitation, legal fees, costs and expenses and any value
added tax thereon) related to or arising from the inaccuracy or alleged inaccuracy of any representation and warranty made by the Issuer in connection with this Note, the Note Purchase Agreement or the Security Documents or any breach or alleged
breach by the Issuer of any of its undertakings in this Note, the Note Purchase Agreement or the Security Documents. 
 “Material
Adverse Effect” means a material adverse change, or any development that could reasonably be expected to result in a material adverse change, in the condition, financial or otherwise, or in the earnings, business, operations or prospects,
whether or not arising from transactions in the ordinary course of business, of the Issuer and its subsidiaries, considered as one entity. 
  

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 “Mexico” means the United Mexican States. 
 “Net Available Cash” from an Asset Disposition means payments in cash or cash equivalents received therefrom (including any cash
payments received by way of deferred payment of principal pursuant to a note or installment receivable or otherwise and proceeds from the sale or other disposition of any securities received as consideration, but only as and when received, but
excluding any other consideration received in the form of assumption by the acquiring Person of Indebtedness or other obligations relating to such properties or assets or received in any other non-cash form), in each case net of (i) all legal,
title and recording tax expenses, commissions and other fees and expenses incurred, and all Federal, state, provincial, foreign and local taxes required to be accrued as a liability under GAAP, as a consequence of such Asset Disposition,
(ii) all payments made on any Indebtedness which is secured by any assets subject to such Asset Disposition, in accordance with the terms of any Lien upon or other security agreement of any kind with respect to such assets, or which must by its
terms, or in order to obtain a necessary consent to such Asset Disposition, or by applicable law, be repaid out of the proceeds from such Asset Disposition, (iii) all distributions and other payments required to be made to minority interest
holders in Restricted Subsidiaries as a result of such Asset Disposition, (iv) the deduction of appropriate amounts provided by the seller as a reserve, in accordance with GAAP, against any liabilities associated with the property or other
assets disposed of in such Asset Disposition and retained by the Issuer or any Restricted Subsidiary after such Asset Disposition and (v) appropriate amounts to be provided by such Person or any Restricted Subsidiary thereof, as the case may
be, as a reserve in accordance with GAAP against any liabilities associated with such assets and retained by such Person or any Restricted Subsidiary thereof, as the case may be, after such Asset Disposition, including, without limitation,
liabilities under any indemnification obligations and severance and other employee termination costs associated with such Asset Disposition, in each case as determined by the Board of Directors, in its reasonable good faith judgment evidenced by an
Officers’ Certificate; provided, however, that any reduction in such reserve within twelve months following the consummation of such Asset Disposition will be treated for all purposes of this Note as a new Asset Disposition at the
time of such reduction with Net Available Cash equal to the amount of such reduction. 
 “Net Cash Proceeds” means, with
respect to any issuance or sale of Capital Stock, the cash proceeds of such issuance or sale net of attorneys’ fees, accountants’ fees, underwriters’ or placement agents’ fees, discounts or commissions and brokerage, consultant
and other fees actually incurred in connection with such issuance or sale and net of taxes paid or payable as a result thereof. 
 “Note Purchase Agreement” means the note purchase agreement dated July 26, 2006 between the Issuer and Deutsche Bank AG, London Branch relating thereto. 
 “Officers’ Certificate” means a certificate signed by the Chairman of the Board, a Vice Chairman, the President or a Vice President, and by the Secretary, an Assistant
Secretary, the Treasurer or an Assistant Treasurer, of the Issuer and delivered to the Holder. 
 “Payment Date” has the
meaning specified in Section 2.1. 
 “Permitted Holders” means AT&T Corp., AT&T Telecom Mexico Inc., Onexa,
S.A. de C.V., Alfa, S.A. de C.V. and Bancomer, S.A., Institución de Banca Múltiple, Grupo Financiero BBVA Bancomer and their respective Affiliates. 
  

 S-31 

 “Permitted Investment” means an Investment by the Issuer or any Restricted Subsidiary in
(i) the Issuer, a Restricted Subsidiary or a Person that will, upon the making of such Investment, become a Restricted Subsidiary; provided, however, that the primary business of such Restricted Subsidiary is a telecommunications
business; (ii) another Person if as a result of such Investment such other Person is merged or consolidated with or into, or transfers or conveys all or substantially all its assets to, the Issuer or a Restricted Subsidiary; provided,
however, that such Person’s primary business is a telecommunications business; (iii) Temporary Cash Investments; (iv) receivables owing to the Issuer or any Restricted Subsidiary if created or acquired in the ordinary course of
business and payable or dischargeable in accordance with customary trade terms; provided, however, that such trade terms may include such concessionary trade terms as the Issuer or any such Restricted Subsidiary deems reasonable under
the circumstances; (v) payroll, travel and similar advances to cover matters that are expected at the time of such advances ultimately to be treated as expenses for accounting purposes and that are made in the ordinary course of business;
(vi) loans or advances to employees made in the ordinary course of business in an aggregate amount not to exceed $1,000,000 at any time outstanding; (vii) stock, obligations or securities received in settlement of debts created in the
ordinary course of business and owing to the Issuer or any Restricted Subsidiary or in satisfaction of judgments; (viii) any Person to the extent such Investment represents the noncash portion of the consideration received for an Asset
Disposition as permitted pursuant to Section 10.15; (ix) Hedging Obligations permitted to be incurred under Section 10.11; and (x) any Person principally engaged in a telecommunications business; provided, however,
that the aggregate amount of Investments made pursuant to this clause (x) shall not exceed $10.0 million at any one time outstanding. 
 “Permitted Liens” means, with respect to any Person, (a) pledges or deposits by such Person under worker’s compensation laws, unemployment insurance laws or similar legislation, or good faith deposits in
connection with bids, tenders, contracts (other than for the payment of Indebtedness) or leases to which such Person is a party, or deposits to secure public or statutory obligations of such Person or deposits of cash or United States government
bonds to secure surety or appeal bonds to which such Person is a party, or deposits as security for contested taxes or import duties or for the payment of rent, in each case Incurred in the ordinary course of business; (b) Liens imposed by law,
such as carriers’, warehousemen’s and mechanics’ Liens, in each case for sums not yet due or being contested in good faith by appropriate proceedings or other Liens arising out of judgments or awards against such Person with respect
to which such Person shall then be proceeding with an appeal or other proceedings for review; (c) Liens for property taxes not yet subject to penalties for non-payment or which are being contested in good faith and by appropriate proceedings;
(d) Liens in favor of issuers of surety bonds or letters of credit issued pursuant to the request of and for the account of such Person in the ordinary course of its business; provided, however, that such letters of credit do not
constitute Indebtedness; (e) minor survey exceptions, minor encumbrances, easements or reservations of, or rights of others for, licenses, rights-of-way, sewers, electric lines, telegraph and telephone lines and other similar purposes, or
zoning or other restrictions as to the use of real property or Liens incidental to the conduct of the business of such Person or to the ownership of its properties which were not Incurred in connection with Indebtedness and which do not in the
aggregate materially adversely affect the value of said properties or materially impair their use in the operation of the business of such Person; (f) Liens securing Indebtedness permitted to be Incurred pursuant to Clause 5.8.2(i);
provided, however, that all liens permitted pursuant to clauses (f), (i) and (j) of this definition of Permitted Liens shall be limited in the aggregate to $50.0 

  

 S-32 

 
million at any one time outstanding; (g) Liens in favor of the Issuer; (h) Liens existing on May 17, 1999; (i) Liens on property or
shares of Capital Stock of another Person (the “Acquired Person” ) at the time the Acquired Person becomes a Subsidiary of such Person (the “Acquiror”) ; provided, however, that such Liens are not
created, incurred or assumed in connection with, or in contemplation of, such Acquired Person becoming such a Subsidiary; provided further, however, that such Lien may not extend to any other property owned by the Acquiror or
any of its Subsidiaries; and provided further, however, that all liens permitted pursuant to clauses (f), (i) and (j) of this definition of Permitted Liens shall be limited in the aggregate to $50.0
(k) Liens securing Indebtedness or other obligations of a Subsidiary of such Person owing to such Person or a wholly owned Subsidiary of such Person; (1) Liens securing Hedging Obligations so long as such Hedging Obligations relate to
Indebtedness that is, and is permitted to be, Incurred under Clause 5.8, secured by a Lien on the same property as secures such Hedging Obligations; (m) Liens to secure any Refinancing (or successive Refinancings) as a whole, or in part, of any
Indebtedness secured by any Lien referred to in the foregoing clauses (f), (h), (i) and (j); provided, however, that (x) such new Lien shall be limited to all or part of the same property that secured the original Lien (plus
improvements to or on such property) and (y) the Indebtedness secured by such Lien at such time is not increased to any amount greater than the sum of (A) the outstanding principal amount or, if greater, committed amount of the
Indebtedness described under clauses (f), (h), (i) or (j) at the time the original Lien became a Permitted Lien and (B) an amount necessary to pay any fees and expenses, including premiums, related to such refinancing, refunding,
extension, renewal or replacement; and (n) Liens incurred in the ordinary course of business of the Issuer and its Subsidiaries with respect to obligations that do not exceed $2 million at any one time outstanding; (o) rights of financial
institutions to set off and chargeback arising by operation of law; or (p) the Liens created pursuant to the Security Agreement. Notwithstanding the foregoing, “Permitted Liens” will not include any Lien described in clauses
(f), (i) or (j) above to the extent such Lien applies to any Additional Assets acquired directly or indirectly from Net Available Cash pursuant to Clause 5.11. For purposes of this definition, the term “Indebtedness” shall
be deemed to include interest on such Indebtedness. 
 “Permitted Merger” means any merger of the Issuer with another
company whose principal business is to provide telecommunications services in Mexico; provided that any consideration, other than the assumption of indebtedness, provided by the Issuer in connection with such merger is solely in the form of stock or
other equity securities, and any such consideration received by the Issuer’s shareholders from the Issuer, any acquired company or any surviving company for the shareholders’ equity securities in connection with such merger is solely in
the form of stock or other equity securities of the company with which the Issuer is merged, any surviving company or any acquiring company. 
 “Person” means any individual, corporation, partnership, limited liability company, joint venture, association, joint-stock company, trust, unincorporated organization, government or any agency or political subdivision
thereof or any other entity. 
 “Peso” denotes the lawful currency of Mexico. 
 “Preferred Stock”, as applied to the Capital Stock of any Person, means Capital Stock of any class or classes (however designated) which
is preferred as to the payment of dividends or distributions, or as to the distribution of assets upon any voluntary or involuntary liquidation or dissolution of such Person, over shares of Capital Stock of any other class of such Person.

 “Refinance” means, in respect of any Indebtedness, to refinance, extend, renew, replace, substitute, refund, repay,
prepay, redeem, defease or retire, or to issue other Indebtedness in exchange or replacement for, such, indebtedness. “Refinanced” and “Refinancing” shall have correlative meanings. 
  

 S-33 

 “Refinancing Indebtedness” means Indebtedness that Refinances any Indebtedness of the
Issuer or any Restricted Subsidiary existing on May 17, 1999 or Incurred in compliance with this Note, including Indebtedness that Refinances Refinancing Indebtedness; provided, however, that (i) such Refinancing Indebtedness
has a Stated Maturity no earlier than the Stated Maturity of the Indebtedness being Refinanced, (ii) such Refinancing Indebtedness has an Average Life at the time such Refinancing Indebtedness is Incurred that is equal to or greater than the
Average Life of the Indebtedness being Refinanced; (iii) such Refinancing Indebtedness has an aggregate principal amount (or if Incurred with original issue discount, an aggregate issue price) that is equal to or less than the aggregate
principal amount (or if Incurred with original issue discount, the aggregate accreted value) then outstanding or committed (plus fees and expenses, including any premium and defeasance costs) under the Indebtedness being Refinanced; and (iv) if
the Indebtedness being refinanced is subordinate or junior to the Notes, such Refinancing Indebtedness shall be subordinate to the Notes at least to the same extent and in the same manner as the Indebtedness being Refinanced; provided further,
however, that Refinancing Indebtedness shall not include (x) Indebtedness of a Subsidiary that Refinances Indebtedness of the Issuer or (y) Indebtedness of the Issuer or a Restricted Subsidiary that Refinances Indebtedness of an
Unrestricted Subsidiary. 
 “Registered Financial Institution” shall mean any non-Mexican financing institution
(a) registered with the Secretaría de Hacienda y Crédito Público in Mexico for purposes of Article 195 or 196 of the Mexican Income Tax Law (Ley del Impuesto Sobre la Renta), the regulations thereunder (or any
successor statute or regulation) and any resoluciones misceláneas thereunder [and (b) that is in material compliance with all such regulations]. 
 “Restricted Payment” with respect to any Person means (i) the declaration or payment of any dividends or any other distributions of any sort in respect of its Capital Stock (including any payment
in connection with any merger or consolidation involving such Person) or similar payment to the direct or indirect holders of its Capital Stock (other than dividends or distributions payable solely in its Capital Stock (other than Disqualified
Stock) and dividends or distributions payable solely to the Issuer or a Restricted Subsidiary, and other than pro rata (or on a basis that results in the receipt by the Issuer or a Restricted Subsidiary of dividends or distributions of equal or
greater value) dividends or other distributions made by a Subsidiary that is not a Wholly Owned Subsidiary to minority stockholders (or owners of an equivalent interest in the case of a Subsidiary that is an entity other than a corporation)),
(ii) the purchase, redemption or other acquisition or retirement for value of any Capital Stock of the Issuer held by any Person or of any Capital Stock of a Restricted Subsidiary held by any Affiliate of the Issuer (other than a Restricted
Subsidiary), including the exercise of any option to exchange any Capital Stock (other than into Capital Stock of the Issuer that is not Disqualified Stock), (iii) the voluntary purchase, repurchase, redemption, defeasance or other acquisition
or retirement for value, prior to scheduled maturity, scheduled repayment or scheduled sinking fund payment of any Subordinated Obligations (other than the purchase, repurchase or other acquisition of Subordinated Obligations purchased in
anticipation of satisfying a sinking fund obligation, principal installment or final maturity, in each case due within one year of the date of acquisition or any purchase, repurchase, redemption or other acquisition or prepayment thereof in
connection with any Refinancing thereof permitted by this Note) or (iv) the making of any Investment in any Person (other than a Permitted Investment). 
 “Restricted Subsidiary” means any Subsidiary of the Issuer that is not an Unrestricted Subsidiary. 
 “SEC” means the Securities and Exchange Commission, as from time to time constituted, or if at any time after the execution of this Indenture such Commission is not existing and performing the applicable duties now assigned
to it, then the body or bodies performing such duties at such time. 
  

 S-34 

 “Securities Act” means the Securities Act of 1933, as amended, and the rules and
regulations promulgated by the SEC thereunder. 
 “Security Agreement” means the Security Agreement dated on or about the
date hereof, by and among the Issuer and the Collateral Agent. 
 “Security Documents” means the Security Agreement, the
AT&T Notice and Consent and all other documents, instruments and filings to be executed and delivered by the Borrower in connection with such agreements and the transactions contemplated thereby. 
 “Senior Indebtedness” means with respect to any Person (i) Indebtedness of such Person, whether outstanding on May 17, 1999 or
thereafter Incurred, and (ii) accrued and unpaid interest (including interest accruing on or after the filing of any petition in bankruptcy or for reorganization relating to such Person to the extent post-filing interest is allowed in such
proceeding) in respect of (A) indebtedness of such Person for money borrowed and (B) indebtedness evidenced by notes, debentures, bonds or other similar instruments for the payment of which such Person is responsible or liable unless, in
the case of (i) and (ii), in the instrument creating or evidencing the same or pursuant to which the same is outstanding, it is provided that such obligations are subordinate in right of payment to the Notes or the applicable Subsidiary
Guaranty; provided, however, that Senior Indebtedness shall not include (1) any obligation of such Person to any Subsidiary, (2) any liability for foreign, Federal, state, local or other taxes owed or owing by such Person,
(3) any accounts payable or other liability to trade creditors arising in the ordinary course of business (including guarantees thereof or instruments evidencing such liabilities), (4) any Indebtedness of such Person (and any accrued and
unpaid interest in respect thereof) which is subordinate or junior in any respect to any other Indebtedness or other obligation of such Person or (5) that portion of any Indebtedness which at the time of Incurrence is Incurred in violation of
this Note. 
 “Series N Limited Voting Rights Stock” means any stock of the Issuer (a) issued pursuant to Article 6 of
the bylaws of the Issuer that is non-ordinary stock with full economic rights and limited voting rights that include only extensions of the duration of the Issuer, anticipated dissolutions of the Issuer, changes of corporate purpose of the Issuer,
changes of nationality of the Issuer, transformation and merger of the Issuer and (b) which is not used to determine the percentage of foreign ownership for the purposes of the Foreign Investment Law of Mexico. 
 “Significant Subsidiary” means any Restricted Subsidiary that would be a “Significant Subsidiary” of the Issuer within
the meaning of Rule 1-02 under Regulation S-X promulgated by the SEC. 
 “Stated Maturity” means, with respect to any
security, the date specified in such security as the fixed date on which the final payment of principal of such security is due and payable, including pursuant to any mandatory redemption provision (but excluding any provision providing for the
redemption or repurchase of such security at the option of the holder thereof upon the happening of any contingency unless such contingency has occurred). 
 “Strategic Subordinated Indebtedness” means Indebtedness of the Issuer which by its terms, or by the terms of any agreement or instrument pursuant to which such Indebtedness is Incurred, is expressly
made subordinate in right of payment to the Notes. 
 “Subordinated Obligation” means any Indebtedness of the Issuer
(whether outstanding on May 17, 1999 or thereafter Incurred) which is subordinate or junior in right of payment to the Notes pursuant to a written agreement to that effect. 
  

 S-35 

 “Subsidiary” means, in respect of any Person, any corporation, association, partnership
or other business entity of which more than 50% of the total voting power of shares of Capital Stock or other interests (including partnership interests) entitled (without regard to the occurrence of any contingency) to vote in the election of
directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by (i) such Person, (ii) such Person and one or more Subsidiaries of such Person or (iii) one or more Subsidiaries of such Person.

 “Telecommunications Capital Asset Disposition” means the transfer, conveyance, sale, lease or other disposition of
feasibility studies, dark fiber and/or conduit and components of the conduit system, the proceeds of which are treated as revenues by the Issuer in accordance with GAAP. 
 “Temporary Cash Investments” means any of the following: 
 (i) any
investment in direct obligations of the United States of America or any agency thereof or obligations guaranteed by the United States of America or any agency thereof, 
 (ii) investments in time deposit accounts, certificates of deposit and money market deposits maturing within 270 days of the date of acquisition thereof issued by a bank or trust company which is
organized under the laws of the United States of America, any state thereof or any foreign country recognized by the United States, and which bank or trust Issuer has capital, surplus and undivided profits, aggregating in excess of $500,000,000 (or
the foreign currency equivalent thereof) and has outstanding debt which is rated “A” (or such similar equivalent rating) or higher by at least one nationally recognized statistical rating organization (as defined in Rule 436 under the
Securities Act) or any money-market fund sponsored by a registered broker-dealer or mutual fund distributor, 
 (iii)
repurchase obligations with a term of not more than 30 days for underlying securities of the types described in clause (i) above entered into with a bank meeting the qualifications described in clause (ii) above, 
 (iv) investments in commercial paper, maturing not more than 270 days after the date of acquisition, issued by a corporation (other than
an Affiliate of the Issuer) organized and in existence under the laws of the United States of America or any foreign country recognized by the United States of America with a rating at the time as of which any investment therein is made of
“P-1” (or higher) according to Moody’s Investors Service, Inc. or “A-l” (or higher) according to Standard and Poor’s Ratings Group, 
 (v) investments in securities with maturities of six months or less from the date of acquisition issued or fully guaranteed by any state, commonwealth or territory of the United States of
America, or by any political subdivision or taxing authority thereof, and rated at least “A” by Standard & Poor’s Ratings Group or “A” by Moody’s Investors Service, Inc., 
 (vi) Certificados de la Tesorería de la Federación (Cetes) or Bonos de Desarrollo del Gobierno Federal
(Bondes) or Bonos Ajustables del Gobierno Federal (Ajustabonos) issued by the Mexican government and maturing not more than 180 days after the acquisition thereof, 
 (vii) Investments in money market funds substantially all of whose assets are comprised of securities of the types described in clauses (i) through (vi) above, 
 (viii) demand deposit accounts with U.S. banks (or Mexican banks specified in clause (ix) of this definition) maintained in the
ordinary course of business, and 
  

 S-36 

 (ix) certificates of deposit, bank promissory notes and bankers’ acceptances denominated in Pesos,
maturing not more than 180 days after the acquisition thereof and issued or Guaranteed by any one of the five largest banks (based on assets as of the immediately preceding December 31) organized under the laws of Mexico and which are not under
intervention or controlled by the Instituto de la Protección al Ahorro Bancario or any successor thereto. 
 “Unrestricted
Subsidiary” means (i) any Subsidiary of the Issuer that at the time of determination shall be designated an Unrestricted Subsidiary by the Board of Directors in the manner provided below and (ii) any Subsidiary of an Unrestricted
Subsidiary. The Board of Directors may designate any Subsidiary of the Issuer (including any newly acquired or newly formed Subsidiary) to be an Unrestricted Subsidiary unless such Subsidiary or any of its Subsidiaries owns any Capital Stock or
Indebtedness of, or holds any Lien on any property of, the Issuer or any other Subsidiary of the Issuer that is not a Subsidiary of the Subsidiary to be so designated; provided, however, that either (A) the Subsidiary to be so
designated has total assets of $1,000 or less or (B) if such Subsidiary has assets greater than $1,000, the Issuer could make a Restricted Payment in an amount equal to the greater of the Fair Market Value and the book value of such Subsidiary
under Clause 5.9. The Board of Directors may designate any Unrestricted Subsidiary to be a Restricted Subsidiary; provided, however, that immediately after giving effect to such designation (x) the Issuer could Incur $1.00 of
additional Indebtedness under Clause 5.8.1 and (y) no Default shall have occurred and be continuing. Any such designation by the Board of Directors shall be evidenced to the Holder by promptly delivering to the Holder a copy of the resolution
of the Board of Directors giving effect to such designation and an Officers’ Certificate certifying that such designation complied with the foregoing provisions. 
 “U.S.$” or “Dollars” means the lawful currency of the United States of America. 
 “Voting Stock” of a Person means all classes of Capital Stock or other interests (including partnership interests) of such Person then outstanding and normally entitled (without regard to the occurrence of any contingency)
to vote in the election of directors, managers or trustees thereof. For purposes of the definition of Change of Control only, so long as the Permitted Holders hold a number of shares of Capital Stock of the Issuer sufficient to allow the Permitted
Holders to elect a majority of the directors on the Board of Directors, shares of common stock that are treated as “neutral investment” under Mexican law and provide for voting rights only with respect to a limited number of directors on
the Board of Directors, including the Series N Limited Voting Rights Stock, shall be deemed not to constitute Voting Stock. 
 “Wholly Owned
Subsidiary” means a Restricted Subsidiary all the Capital Stock of which (other than directors’ qualifying shares or equivalent shares) is owned by the Issuer or one or more Wholly Owned Subsidiaries. 
 Issued in •, Mexico on July 27, 2006 
 Signed in facsimile for and
on behalf of 
  

			
	ALESTRA, S. de R.L. de C.V.
		
	By:	 	  

	Name:	 	
	Title:	 	

  

 S-37 

 Annex A to the Note 
  

				
	 Payment Date in
	  	Principal Amount Due
	 February 2007
	  	$	3,846,153.85
	 May 2007
	  	$	3,846,153.85
	 August 2007
	  	$	3,846,153.85
	 November 2007
	  	$	3,846,153.85
	 February 2008
	  	$	3,846,153.85
	 May 2008
	  	$	3,846,153.85
	 August 2008
	  	$	3,846,153.85
	 November 2008
	  	$	3,846,153.85
	 February 2009
	  	$	3,846,153.85
	 May 2009
	  	$	3,846,153.85
	 August 2009
	  	$	3,846,153.85
	 November 2009
	  	$	3,846,153.85
	 February 2010
	  	$	3,846,153.85
		  	 	 
	 TOTAL
	  	$	50,000,000.00

  

 S-38 

 Annex B to the Note 
 Notice of LIBOR And Reserve Determination 
 Interest Determination Date:
                                        

 Related Payment Date:
                                        

 First Day of Applicable Interest Period:
                             
 LIBOR for Such Interest
Period:                                       
      % 
 Required Coverage Amount (as defined in the Security Agreement) 
   in Effect for such Interest Period: $
                                        

 Withdrawal Threshold (as defined in the Security Agreement) 
   in Effect for such Interest Period: $
                                        

  

 S-39 

 SCHEDULE 2 
 OPINION OF LEGAL COUNSEL FOR THE ISSUER 
 [TO COME] 
  

 S-1Security Agreement

 Exhibit 4.16 
 Execution Copy 
 SECURITY AGREEMENT 
 This SECURITY AGREEMENT (this “Agreement”) is made and entered into as of July 26, 2006 by and among Alestra, S. de R.L. de C.V., a
sociedad de responsabilidad limitada de capital variable organized under the laws of the United Mexican States, as debtor (“Pledgor”) and Deutsche Bank Trust Company Americas, as collateral agent for the benefit of the
Holders and, for purposes of establishing and maintaining the Account (as defined below), in its individual capacity as a securities intermediary (the “Collateral Agent”). Capitalized terms used herein and not otherwise defined
herein shall have the meanings given to such terms in that certain Note Purchase Agreement dated as of the date hereof between Pledgor and Deutsche Bank AG, London Branch (the “Initial Holder”), a copy of which is attached as
Exhibit A hereto (the “Note Purchase Agreement”) and in the Notes issued pursuant thereto. 
 W I T N E S S E T H 

WHEREAS, Pledgor and the Initial Holder have entered into the Note Purchase Agreement, pursuant to which the Initial Holder intends to purchase from
Pledgor on the date hereof one or several Note(s) in an aggregate amount of $50,000,000, which Note(s) (and the Initial Holder’s rights under the Note Purchase Agreement) may be transferred in whole or in part by the Initial Holder from time to
time to one or several Holders; and 
 WHEREAS, Pledgor is owed and will be owed from time to time by AT&T Corp. (together with all
affiliates of AT&T Corp. to which Pledgor provides or will provide services from time to time, the “Account Debtor”) amounts pursuant to (i) that certain Second Amended and Restated Joint Venture Agreement, dated as of
October 17, 1996 (the “JVA”), by and among Alfa, S.A. de C.V. (“Alfa”), the Account Debtor, AT&T Telecom Mexico Inc. (“AT&T Mexico”), Bancomer, S.A., Institución de Banca
Multiple, Grupo Financiero, Onexa, S.A. de C.V., Valores Industriales S.A. and Pledgor, as amended and supplemented from time to time, including without limitation by that certain Addendum to Second Amended and Restated Joint Venture Agreement,
dated as of November 30, 2005, by and among Alfa, the Account Debtor, AT&T Mexico, BBVA Bancomer S.A., Institución de Banca Multiple, Grupo Financiero BBVA Bancomer, Onexa, S.A. de C.V. and Pledgor, and Appendix 5 thereto (such
Appendix 5, the “Margin Contribution Commitment”), (ii) that certain Agreement for Services Provided through the IP Network, dated as of December 14, 1998, between Pledgor and the Account Debtor, as amended and
supplemented from time to time, (iii) that certain International Telecommunications Services Agreement for the provision of International Switched Voice Services dated as of January 10, 1997, between Pledgor and the Account Debtor, as
reassigned to the Account Debtor on April 1, 2002 and as further amended and supplemented from time to time, (iv) that certain AT&T Global Network Cooperation Agreement between the Account Debtor and Pledgor, executed on August 6,
2004, and (v) any amendments or supplements to the agreements referred to in the foregoing clauses (i) through (iv) and any agreements hereafter entered into by the Account Debtor and Pledgor whereby Pledgor provides services to
Account Debtor substantially similar to those provided under the agreements referred to in the foregoing clauses (i) through (iv) ((i) through (v) collectively, the “Service Agreements” and all amounts owed or to be
owed by the Account Debtor to Pledgor pursuant to any of the Service Agreements, including without limitation all amounts owed or to be owed pursuant to Section 3.09 of the JVA and the Margin Contribution Commitment, the
“Receivables”); and 
  

 1 

 WHEREAS, the Collateral Agent, as securities intermediary, has established a securities account (the
“Account”) designated as Account No. 53819, in the name of “Alestra, S. de R.L. de C.V. – DBTCA as Collateral Agent”; and 
 WHEREAS, to secure the obligations of Pledgor to pay in full each of the scheduled interest and principal payments on the Notes and all other amounts owed by Pledgor under the Note Purchase Agreement and the Notes
(collectively, the “Obligations”), Pledgor has agreed to execute and deliver this Agreement in order to (i) grant to the Collateral Agent, for the benefit of the Holders, a security interest in the Receivables, the Account and
all cash and other Collateral (as hereinafter defined) from time to time deposited in or credited to the Account, to secure the payment and performance by Pledgor of all the Obligations, and (ii) perfect the Collateral Agent’s security
interest in the Account and Collateral held therein from time to time, and provide for maintenance of the Account by the Collateral Agent pursuant to the terms hereof; and 
 WHEREAS, Pledgor has agreed to (i) irrevocably instruct the Account Debtor to make all payments in respect of the Receivables directly to the
Account, and (ii) maintain at all times Collateral in the Account in the amount specified herein; and 
 WHEREAS, it is a condition
precedent to the purchase of the Note(s) by the Initial Holder that Pledgor shall have granted the security interest and entered into the covenants and undertakings contemplated by this Agreement; and 
 WHEREAS, unless otherwise defined herein or in the Note Purchase Agreement or the Notes, terms used herein that are defined in Article 8 and 9 of the
Uniform Commercial Code as in effect from time to time in the State of New York (the “UCC”) are used herein as therein defined; 
 NOW, THEREFORE, in consideration of the mutual promises herein contained, and in order to induce the Initial Holder to purchase the initial Note(s), Pledgor hereby agrees with Collateral Agent as follows: 
 Section 1. Grant of Security Interest. Pledgor hereby grants to Collateral Agent, for the benefit of the Holders of the Notes, a security
interest in and to all of Pledgor’s right, title and interest in, to and under the following, in each case whether now owned or hereafter acquired, wherever located and whether now or hereafter existing (hereinafter collectively referred to as
the “Collateral”): 
 (a) the Receivables; 
 (b) the Account; 
 (c) all cash or credit balances from time to time deposited in or credited to the
Account; 
 (d) all financial assets (including certificated and uncertificated securities) and security entitlements from time to time
deposited in, credited to, or created or otherwise carried in the Account; 
  

 2 

 (e) all interest, dividends, cash, instruments and other property from time to time received, receivable
or otherwise distributed in respect of or in exchange for any or all of the Collateral; 
 (f) all securities (whether certificated or
uncertificated) or other financial assets, security entitlements, securities accounts, accounts, general intangibles, instruments, documents, cash or deposit accounts representing or evidencing any or all of the Collateral; and 
 (g) to the extent not covered by clauses (a) through (f) above, all proceeds (within the meaning of the UCC) of any and all of the foregoing
Collateral (including, without limitation, proceeds that constitute property of the types described in clauses (a) through (f) above). 
 Section 2. Secured Obligations. This Agreement and the grant of a security interest in the Collateral secure the prompt and complete payment and performance when due (whether at stated maturity, by acceleration, upon redemption
or otherwise) of all Obligations now or hereafter existing, whether for principal, premium, interest, fees, indemnities or otherwise, and all obligations of Pledgor now or hereafter existing under this Agreement (all such Obligations and such other
obligations being, collectively, the “Secured Obligations”). Without limiting the generality of the foregoing, this Agreement and the grant of a security interest in the Collateral hereunder secure, to the fullest extent permitted
by applicable law, the payment of all amounts that constitute part of the Secured Obligations and that would be owed by Pledgor to the Holders but for the fact that they are unenforceable or not allowable due to the existence of a bankruptcy,
reorganization or similar proceeding involving Pledgor. 
 Section 3. Establishing and Maintaining the Account. 
 (a) The Collateral Agent, as securities intermediary, has established and, for so long as any Secured Obligation shall remain outstanding, shall maintain
the Account. All parties agree that (i) the Account is a “securities account” within the meaning of Article 8 of the UCC, (ii) the Collateral Agent is acting as a “securities intermediary” within the meaning of §
8-102 of the UCC and New York is the “securities intermediary’s jurisdiction” under § 8-110 of the UCC, and (iii) all property held by the Collateral Agent, as securities intermediary, and credited to the Account (whether
investment property, financial asset, security, instrument or cash) will be treated as “financial assets” under § 8-102(a)(9) of the UCC. Except for the claims and interest of Pledgor and the Collateral Agent (for the benefit of the
Holders) in the Account, and subject to any claim in favor of the Collateral Agent permitted under Section 12 hereof, the Collateral Agent does not know of any claim to or interest in the Account. The Account shall be under the sole dominion
and control (within the meaning of § 8-106 of the UCC) of the Collateral Agent and (except as otherwise set forth herein) Pledgor shall have no right to close, make withdrawals from, or give disbursement directions with respect to the Account.
The Collateral Agent shall maintain the Account and all cash and property credited thereto free of any lien, charge or claim of any kind in favor of the Collateral Agent or any person claiming through the Collateral Agent, and it will not assert any
lien, encumbrance, claim or right of set-off against the Account or any cash or property credited to the Account, in each case other than (i) the security interest granted by Pledgor to the Collateral Agent for the benefit of the Holders
pursuant to this Agreement, and (ii) as otherwise provided in Section 12 hereof. The Collateral Agent has not agreed and will not agree with any third party to comply with entitlement orders or other directions concerning the 

  

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Account originated by such third party without the prior written consent of Pledgor and each Holder. The Collateral Agent represents that no such agreement
with any third party is now in effect. 
 (b) Prior to or concurrently with the execution and delivery hereof, Pledgor shall irrevocably
instruct the Account Debtor, by a notice and consent substantially in the form set forth in Exhibit B hereto (the “AT&T Notice and Consent”), to make all payments in respect of the Receivables when due by wire transfer of
immediately available funds in U.S. dollars to the Account, and shall obtain execution and delivery by the Account Debtor of the AT&T Notice and Consent and deliver a counterpart of such notice to Pledgor. Pledgor acknowledges and agrees that
delivery of the executed AT&T Notice and Consent is a condition precedent to the Initial Holder’s purchase of the initial Note(s). For so long as any Secured Obligation shall remain outstanding, Pledgor shall not provide Account Debtor any
instruction or notice or otherwise take any action in respect of the Receivables inconsistent with the terms of this Agreement. 
 (c) Except
as provided in Sections 3(f) and 3(g) of this Agreement, the Collateral Agent shall neither accept nor comply with any entitlement orders or other directions from Pledgor concerning the Account nor deliver or dispose of any cash or property held in
the Account to or on instruction of Pledgor. The Collateral Agent shall maintain and manage the Account in accordance with the terms of this Agreement until such time as (i) the Collateral Agent becomes entitled to exercise remedies against the
Account pursuant to this Agreement or (ii) the Collateral Agent is instructed to release the Collateral pursuant to Section 3(g). 
 (d) The Collateral Agent shall, to the extent of funds held in the Account and to the extent not stayed or precluded by any applicable law or court order, on each Payment Date, transfer from the Account to such U.S. dollar account of each
Holder as such Holder may specify to the Collateral Agent for such purpose from time to time in writing, an amount equal to the sum of the interest and principal amortization payments due from Pledgor to such Holder on such Payment Date (or, if
funds held in the Account are insufficient to fully pay such amounts, the Collateral Agent shall make payments pro rata to the extent of available funds in the Account). 
 (e) At all times after the first day following the date hereof on which the funds held in the Account exceed the Required Coverage Amount, and for so long as any Secured Obligation shall remain outstanding, Pledgor
shall maintain funds in the Account in an amount at least equal to the Required Coverage Amount. Upon receipt of a notice delivered by the Determination Agent pursuant to Section 2.1.4 of the Notes (a “LIBOR and Reserve
Notice”), the Collateral Agent shall compare (i) the amount on deposit in the Account as of the close of business on such day with (ii) the sum of (A) the Required Coverage Amount indicated in such notice as applicable to the
following Interest Period plus (B) the amount of principal and interest on all Notes to be paid on the Payment Date immediately following such date of determination. If the amount described in (i) is less than the amount described in (ii),
the Collateral Agent shall notify the Pledgor and the Determination Agent of such deficiency no later than the close of business in New York City on such Payment Date. Upon such notice, Pledgor shall, no later than the close of business in New York
City on the following Business Day, by wire transfer of immediately available funds in U.S. dollars to the Account, deposit to the Account an amount sufficient so 

  

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that, after giving effect to such transfer, the amount of funds in the Account is at least equal to the Required Coverage Amount. “Required Coverage
Amount” with respect to any Interest Period shall mean the aggregate amount of the interest and principal payments to be made by Pledgor to all Holders under the Notes on the Payment Date that is the last day of such Interest Period and on
the next following Payment Date. For purposes of determining the Withdrawal Threshold and the Required Coverage Amount as of any date, (i) the aggregate amount of the interest payments to be made on any Payment Date if, as of the date of
determination, LIBOR has not been determined for the Interest Period in which such Payment Date occurs, shall be determined based on LIBOR as in effect on such date of determination, and (ii) the Collateral Agent shall at all times be entitled
to rely on the most recent notices delivered by the Determination Agent pursuant to Section 2.1.4 of the Notes. 
 (f) On (i) each
date on which it receives a LIBOR and Reserve Notice and (ii) the last Business Day of each calendar month in which no Payment Date occurs (each an “Excess Determination Date”), the Collateral Agent shall compare (I) the
amount on deposit in the Account as of the close of business on such day with (II) the Withdrawal Threshold indicated in the LIBOR and Reserve Notice received on or most recently prior to such day, as the case may be. If on any Excess Determination
Date the Collateral Agent determines that the amount of funds held in the Account is in excess of such Withdrawal Threshold then, no later than the close of business in New York City on the Business Day following such Excess Determination Date, the
Collateral Agent shall transfer the amount of such excess from the Account to such U.S. dollar account of Pledgor as Pledgor may have previously specified in writing; provided that, immediately following such transfer, the amount of cash
credited to the Account will be greater than or equal to the Withdrawal Threshold and provided further that the Collateral Agent shall make no such transfers during any period in which it has been notified by the Requisite Holders that an
Event of Default has occurred and is continuing. “Withdrawal Threshold” as of any date of determination shall mean the sum of (A) the aggregate amount of the interest and principal amortization payments to be made by Pledgor to
all Holders under the Notes on the Payment Date following such date of determination plus (B) the Required Coverage Amount indicated in the LIBOR and Reserve Notice received on or most recently prior to such date of determination, as the case
may be. 
 (g) In addition to Section 3(f), upon written confirmation to the Collateral Agent from the Determination Agent that no
Secured Obligations remain outstanding, the Collateral Agent shall return all funds and other property in the Account and any other Collateral held by the Collateral Agent to Pledgor, in accordance with instructions from Pledgor. Any such delivery
shall constitute a complete discharge of the Collateral Agent from any and all further liability for the Collateral. Upon the release of any Collateral from the Account in accordance with the terms of this Section 3(g) or of Section 3(f),
the security interest evidenced by this Agreement in such released Collateral will automatically terminate and be of no further force and effect. 
 (h) The Collateral Agent shall supply to Pledgor and to each Holder a separate written report for each preceding month indicating the amount held in the Account. Pledgor shall promptly review all such reports and shall promptly advise the
Collateral Agent of any error, omission or inaccuracy in the same. 
  

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 (i) Unless otherwise jointly instructed in writing by Pledgor and the Determination Agent, the Collateral
Agent shall invest all amounts in the Account from time to time in the JPMorgan Funds US Dollar Liquidity Reserves Class – Fund #776 and shall credit all income received on such investment to the Account. Any loss incurred on funds invested in
accordance herewith shall be for Pledgor’s account. The Collateral Agent shall not be liable for any loss incurred on any funds invested in accordance with the provisions of this Section. In no event shall the Collateral Agent be liable for the
selection of investments or for losses incurred as a result of the liquidation of any investment prior to its stated maturity or for the failure of any appropriate person to provide timely written investment direction. The Collateral Agent shall
have no obligation to invest or reinvest the Collateral if deposited with the Collateral Agent after 11:00 a.m. (E.S.T.) on such day of deposit. Instructions received after 11:00 a.m.(E.S.T.) will be treated as if received on the following Business
Day. Any interest or other income received on such investment and reinvestment of the Collateral shall become part of the Collateral and any losses incurred on such investment and reinvestment of the Collateral shall be debited against the
Collateral. It is agreed and understood that the entity serving as Collateral Agent may earn fees associated with the investments outlined above in accordance with the terms of such investments. Notwithstanding the foregoing, the Collateral Agent
shall have the power to sell or liquidate the foregoing investments whenever the Collateral Agent shall be required to release all or any portion of the Collateral pursuant to Section 10 hereof. In no event shall the Collateral Agent be deemed
an investment manager or adviser in respect of any selection of investments hereunder. It is understood and agreed that the Collateral Agent or its affiliates are permitted to receive additional compensation that could be deemed to be in the
Collateral Agent’s economic self-interest for (1) serving as investment adviser, administrator, shareholder servicing agent, custodian or sub-custodian with respect to certain of the investments, (2) using affiliates to effect
transactions in certain investments and (3) effecting transactions in investments. 
 Section 4. Representations and
Warranties. Pledgor hereby represents and warrants to the Collateral Agent that: 
 (a) (i) it is duly incorporated or organized and
is validly existing in good standing in its jurisdiction of incorporation or organization, (ii) the execution, delivery and performance of this Agreement and all documents and instruments to be delivered hereunder have been duly authorized,
(iii) the person executing this Agreement on its behalf has been duly authorized to act on its behalf, (iv) this Agreement has been duly executed and delivered by Pledgor and constitutes its legal, valid and binding agreement, enforceable
against Pledgor in accordance with its terms, subject to the effect of bankruptcy, insolvency or similar laws affecting the rights of debtors and creditors generally, and (v) all representations and warranties of the Pledgor in the Note
Purchase Agreement are true and correct as of the date hereof; 
 (b) the compliance by Pledgor with all of the provisions of this Agreement
and the consummation of the transactions herein contemplated will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, any indenture, mortgage, collateral document, deed of trust,
loan agreement or other agreement or instrument to which Pledgor or any of its subsidiaries is a party or by which Pledgor or any of its subsidiaries is bound or to which any of the property or assets of Pledgor or any of its subsidiaries is
subject, nor will such action result in the creation or imposition of any lien on any assets of Pledgor, except for the security interests granted under this Agreement, nor will such action result in any 

  

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violation of the organizational documents of Pledgor or any of its subsidiaries or any statute or any order, rule or regulation of any court or regulatory or
governmental agency or body or any stock exchange authorities (each hereinafter referred to as a “Governmental Agency”), or any court, having jurisdiction over Pledgor or any of its subsidiaries or any of their properties;

 (c) no consent of any other Person and no approval, authorization, order, registration or qualification of or with any such Governmental
Agency or other third party having jurisdiction over Pledgor or any of its subsidiaries or any of its properties (hereinafter referred to as “Governmental Authorizations”) is or will be required for (i) the execution and
delivery by Pledgor of this Agreement, (ii) the consummation by Pledgor of the transactions contemplated by this Agreement or (iii) for the grant by Pledgor of the security interests created by this Agreement. No consent of any other
Person and no approval, authorization or order of, action by or qualification with, any governmental authority, regulatory body, agency or other third party is required for the exercise by Collateral Agent, on behalf of the Holders, of the rights
provided for in this Agreement or the remedies in respect of the Collateral pursuant to this Agreement; 
 (d) Pledgor is the beneficial
owner of the Collateral, free and clear of any lien or claim of any Person (except for the security interests created by this Agreement). Pledgor has not at any time transferred any of the Collateral to any Person other than the Collateral Agent and
the Holders or encumbered any of the Collateral with a lien in favor of any other Person (or any such encumbrance or lien has been validly released prior to the date hereof). No effective financing statement or instrument similar in effect covering
all or any part of Pledgor’s interest in any of the Collateral is on file in any public or recording office, other than the financing statements filed pursuant to this Agreement. Pledgor has no trade names; 
 (e) (i) each Receivable constitutes a valid, binding and enforceable obligation of the Account Debtor, enforceable in accordance with its terms,
except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general equitable principles (whether enforcement is sought by proceedings
in equity or at law); (ii) there is no waiver, amendment or modification of the terms of the Receivables in effect; (iii) no right of rescission, setoff, counterclaim or defense has been asserted and no contractual basis for the same
exists with respect to the Receivables; (iv) currently there is no outstanding notice from AT&T Corp. to Pledgor stating that Pledgor is in material breach of any obligation under any Service Agreement, and Pledgor is not in material breach
of any obligation under any Service Agreement; (v) there are no material past due amounts outstanding in respect of the Receivables on the date hereof; (vi) Pledgor’s interest in the Receivables has not been satisfied, subordinated or
rescinded in whole or in part; (vii) the Receivables constitute either “accounts” or “payment intangibles” under the UCC; and (viii) none of the Receivables is represented by “chattel paper” or
“instruments” under the UCC; 
 (f) upon the execution and delivery of this Agreement by all of the parties hereto, the filing of a
UCC-1 financing statement naming Pledgor as debtor and Collateral Agent as secured party in the District of Columbia in respect of the Collateral and the execution and delivery of the AT&T Notice and Consent by Pledgor and the Account Debtor,
the grant of a security interest in the Collateral pursuant to this Agreement to the Collateral Agent for the benefit of the Holders will create a valid and perfected first priority security interest in such Collateral securing the payment of the
Secured Obligations; 
  

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 (g) there are no legal or governmental proceedings pending to which Pledgor or any of its subsidiaries is
a party or of which any property of Pledgor or any of its subsidiaries is the subject, which, if determined adversely to Pledgor or any of its subsidiaries, would individually or in the aggregate adversely affect in any material respect the power or
ability of Pledgor to perform its obligations under this Agreement or to consummate the transactions contemplated hereby; and 
 (h)
Pledgor’s exact legal name is that indicated on the signature page hereof. Pledgor’s place of business or, if more than one, its chief executive office as well as Pledgor’s mailing address is as is set forth in the Note Purchase
Agreement. 
 Section 5. Covenants. Pledgor covenants and agrees with the Collateral Agent, for the benefit of the Holders, that
from and after the date of this Agreement and for so long as any Secured Obligation shall remain outstanding: 
 (a) (i) other than in
the ordinary course of business, Pledgor shall not adjust, settle or compromise the amount or payment of any Receivable, or release wholly or partly the Account Debtor, or allow any credit or discount thereon; (ii) Pledgor shall perform in all
material respects all of its obligations with respect to the Receivables, and neither the Collateral Agent nor any Holder of a Note shall be required or obligated in any manner to perform or fulfill any obligations of Pledgor with respect to the
Receivables, or to make any payment to the Account Debtor or any person in connection therewith; (iii) in the event Pledgor or any of its affiliates receives directly any funds that are required by the terms hereof to be deposited in the
Account, it shall hold such funds in trust for the Collateral Agent and shall promptly (a) notify the Collateral Agent in writing of same and (b) remit such funds to the Collateral Agent for deposit into the Account; (iv) Pledgor
shall not directly or indirectly terminate, amend, modify, waive or consent to any departure from any provision of the AT&T Notice and Consent or any of the Service Agreements or substantially reduce its business under the Service Agreements, in
any case without first obtaining the prior written consent of the Collateral Agent and each Holder; (v) Pledgor shall instruct any affiliate of AT&T Corp. that owes Receivables to Pledgor from time to time and is not a signatory to the
AT&T Notice and Consent to make all payments to Pledgor in respect of the Receivables in accordance with Section 3(b) hereto, and shall use its best efforts to promptly obtain from any such affiliate of AT&T Corp. a duly executed and
delivered consent in form and substance identical to the AT&T Notice and Consent; and (vi) Pledgor shall promptly provide to the Collateral Agent a copy of any notice from AT&T Corp. stating that Pledgor is in material breach of any
obligation under any Service Agreement. 
 (b) Pledgor will not (and will not purport to) sell or otherwise dispose of, or grant any option,
right or warrant with respect to, any of the Collateral or its beneficial interest therein, and it will not create or permit to exist any lien or other adverse interest in or with respect to its beneficial interest in any of the Collateral, other
than the security interest granted under this Agreement, or otherwise deal with the Collateral in contravention of the rights of the Holder, and shall at all time warrant and defend the Collateral Agent’s security interest to the Collateral
against the claims and demands of all Persons; 
  

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 (c) Pledgor will not (i) enter into any agreement or understanding that restricts or inhibits or
purports to restrict or inhibit the Collateral Agent’s rights or remedies hereunder, including without limitation the Collateral Agent’s right to sell or otherwise dispose of the Collateral, or (ii) fail to pay or discharge when due
any tax, assessment or levy of any nature with respect to its beneficial interest in the Collateral any later than five days prior to the date of any proposed sale under any judgment, writ or warrant of attachment with respect to such beneficial
interest; and 
 (d) Pledgor will not, without providing at least 30 days prior written notice to the Collateral Agent and each Holder,
change its name, its place of business or, if more than one, chief executive office, or its mailing address or organizational identification number, or change its type of organization, jurisdiction of organization or other legal structure.

 Section 6. Further Assurances. 
 (a) Pledgor agrees that from time to time, it will, at its own expense, promptly upon reasonable request by the Collateral Agent, execute and deliver or cause to be executed and delivered, all assignments, instruments
and other documents, all in form and substance reasonably satisfactory to the Collateral Agent, deliver any instruments to the Collateral Agent and take any other actions that may be necessary or, in the reasonable opinion of the Collateral Agent,
desirable to perfect, continue the perfection of, or protect the first priority of the Collateral Agent’s security interest in and to the Collateral, to protect the Collateral against the rights, claims, or interests of third Persons (other
than any such rights, claims or interests created by or arising through the Collateral Agent) or to effect the purposes of this Agreement. 
 (b) Pledgor hereby authorizes the Collateral Agent to file any financing or continuation statements with respect to the Collateral without the signature of Pledgor (to the extent permitted by applicable law). The Collateral Agent shall
notify Pledgor promptly following any such filing. 
 (c) Pledgor will furnish to the Collateral Agent from time to time statements and
schedules further identifying and describing the Collateral and such other reports in connection with the Collateral as the Collateral Agent may reasonably request, all in reasonable detail. 
 (d) Pledgor will promptly pay all costs and expenses reasonably incurred in connection with any of the foregoing within 30 days of receipt of an invoice
therefor. Pledgor also agrees, whether or not requested by the Collateral Agent, to take all actions that are necessary to perfect and to continue the perfection of, and to protect the first priority of, the Collateral Agent’s security interest
in and to the Collateral, including the filing of all necessary financing and continuation statements, and to protect the Collateral against the rights, claims or interests of third Persons (other than any such rights, claims or interests created by
or arising through the Collateral Agent). 
 (e) If Pledgor fails to perform any agreement contained herein, the Collateral Agent may but
shall not be required to perform, or cause performance of, such agreement, and the reasonable expenses of the Collateral Agent incurred in connection therewith shall be payable by Pledgor under Section 12 hereof. The Collateral Agent shall
notify Pledgor promptly upon taking any such action. 
  

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 Section 7. Power of Attorney. Pledgor hereby appoints and constitutes the Collateral Agent as
Pledgor’s attorney-in-fact (with full power of substitution), with full authority in the place and stead of Pledgor and in the name of Pledgor or otherwise, from time to time in the Collateral Agent’s reasonable discretion to take any
action and to execute any instrument that the Collateral Agent may deem necessary or advisable to accomplish the purposes of this Agreement, including, without limitation: 
 (a) to ask for, demand, collect, sue for, recover, compromise, receive and give acquittance and receipt for moneys due and to become due under or in
respect of any of the Collateral, 
 (b) to receive, endorse and collect any drafts or other instruments, documents and chattel paper,

 (c) to file any claims or take any action or institute any proceedings that the Collateral Agent may reasonably deem necessary or
desirable for the collection of any of the Collateral or otherwise to enforce the rights of the Collateral Agent with respect to any of the Collateral, and 
 (d) to pay or discharge any taxes or liens levied or placed upon the Collateral, the legality or validity thereof and the amounts necessary to discharge the same all as determined by the Collateral Agent in its sole
discretion, it being understood that any such payments (including any penalties relating to such payments) made by the Collateral Agent shall become part of the Secured Obligations of Pledgor to the Collateral Agent, and shall be due and payable
immediately upon demand; 
 provided, however, that the Collateral Agent shall notify Pledgor promptly upon taking any such action, and shall
have no obligation to perform any of the foregoing actions. The Collateral Agent’s authority under this Section 7 shall include, without limitation, the authority to endorse and negotiate any checks or instruments representing proceeds of
Collateral in the name of Pledgor, execute and give receipt for any certificate of ownership or any document constituting Collateral, transfer title to any item of Collateral, authorize the filing of any financing statements (to the extent permitted
by applicable law) or any other documents reasonably deemed necessary or appropriate by the Collateral Agent to preserve, protect or perfect the security interest in the Collateral and to file the same, prepare, file and sign Pledgor’s name on
any notice of lien, and to take any other actions arising from or incident to the powers granted to the Collateral Agent in this Agreement. This power of attorney is coupled with an interest and is irrevocable by Pledgor. 
 Section 8. Standard of Care; Force Majeure. 
 (a) The rights and powers conferred on the Collateral Agent hereunder are solely to preserve and protect the security interest of the Collateral Agent for the benefit of the Holders in and to the Collateral granted
hereby and shall not be interpreted to, and shall not, impose any duties on the Collateral Agent in connection therewith other than such duties as are set forth herein or contained in instructions given to the Collateral Agent which are not contrary
to the provisions of this Agreement, or imposed under applicable law. 
  

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 (b) Except as provided herein or by applicable law, the Collateral Agent shall be deemed to have
exercised reasonable care in the custody and preservation of any Collateral in its possession if the Collateral is accorded treatment substantially equal to that which the Collateral Agent accords similar property held by itself for its own account,
it being understood that the Collateral Agent, in its capacity as such, shall not have any responsibility for (a) ascertaining or taking action with respect to any matters relative to any Collateral, whether or not the Collateral Agent has or
is deemed to have knowledge of such matters, (b) taking any necessary steps to preserve rights against any parties with respect to any Collateral or (c) investing or reinvesting any of the Collateral or any loss on any investment.
Notwithstanding any other provisions of this agreement, the Collateral Agent shall have no duty, obligation or liability to ensure compliance with any regulation or statute applicable to Pledgor or any Holder. 
 (c) The Collateral Agent shall not be responsible or liable for any failure or delay in performance of its obligations under this Agreement arising out
of or caused, directly or indirectly, by circumstances beyond its reasonable control, including without limitation, acts of God, earthquakes, fires, floods, wars, civil or military disturbance, sabotage, epidemics, riots, acts of terrorism, loss or
malfunctions of utilities or of computer (hardware or software) or communications services, labor disputes, acts of civil or military authority, or governmental, judicial or regulatory actions; provided, however, that the Collateral Agent
shall use its best efforts to resume performance as soon as reasonably possible. 
 Section 9. Limitation of Liability;
Indemnity. 
 (a) The Collateral Agent’s responsibility hereunder is limited to any loss occasioned directly by the gross negligence
or willful misconduct of an employee of the Collateral Agent. In no event, however, shall the Collateral Agent have any responsibility for consequential, indirect, special or exemplary damages, whether or not it has notice thereof. 
 (b) Pledgor shall indemnify, hold harmless and defend the Collateral Agent and each of its directors, officers, agents and employees, from and against
any and all third party claims, actions, obligations, liabilities and expenses, including defense costs, investigative fees and costs, and legal fees and damages arising from their execution of or performance under this Agreement, except to the
extent that such claim, action, obligation, liability or expense is directly attributable to the bad faith, gross negligence or willful misconduct of such indemnified person. This indemnification shall survive the termination of this Agreement.

 Section 10. Remedies Upon Event of Default. If any Event of Default shall have occurred and be continuing: 
 (a) The Collateral Agent may (at the written direction of the Requisite Holders) exercise, in addition to all other rights given by law or by this
Agreement, all of the rights and remedies with respect to the Collateral of a secured party under the Uniform Commercial Code as in effect from time to time in any relevant jurisdiction and also may, without notice except as specified below,
(i) sell, redeem or liquidate any of the Collateral, (ii) transfer any or all of the 

  

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Collateral to any account designated by the Collateral Agent, including an account or accounts established in the Collateral Agent’s name, or issue
entitlement orders or instructions to the Collateral Agent in respect of the Account, (iii) register title to any Collateral in any name specified by the Collateral Agent, including the name of the Collateral Agent or any of its nominees or
agents, without reference to any interest of Pledgor, (iv) continue to collect any and all amount payable in respect of any and all Collateral, or (v) sell the Collateral or any part thereof in one or more parcels at public or private
sale, in one or more sales or lots, at any of the Collateral Agent’s offices or elsewhere, for cash, on credit or for future delivery, and upon such other terms as the Collateral Agent may deem commercially reasonable. To the extent notice of
any such sale shall be required by law, Pledgor agrees that at least ten days’ notice to Pledgor of the time and place of any public sale or the time after which any private sale is to be made shall constitute reasonable notification. The
Collateral Agent shall not be obligated to make any sale of Collateral regardless of notice of sale having been given. The Collateral Agent may adjourn any public or private sale from time to time by announcement at the time and place fixed
therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned. The purchaser of any or all Collateral so sold shall thereafter hold the same absolutely free from any claim, encumbrance or right of
any kind whatsoever created by or through Pledgor. Any sale of the Collateral conducted in conformity with reasonable commercial practices of banks, insurance companies, commercial finance companies, or other financial institutions disposing of
property similar to the Collateral shall be deemed to be commercially reasonable. The Collateral Agent may, in its own name or in the name of a designee or nominee, buy any of the Collateral at any public sale and, if permitted by applicable law, at
any private sale. All expenses (including court costs and reasonable attorneys’ fees, expenses and disbursements) of, or incident to, the enforcement of any of the provisions hereof shall be recoverable from the proceeds of the sale or other
disposition of the Collateral. If there are insufficient proceeds of Collateral to make any required payment on the Secured Obligations, Pledgor shall be liable to the Collateral Agent and the Holders for any deficiency. 
 (b) Pledgor further agrees to use its commercially reasonable efforts to do or cause to be done all such other acts as may be necessary to make such sale
or sales of all or any portion of the Collateral pursuant to this Section 10 valid and binding and in compliance with any and all other applicable requirements of law. Pledgor further agrees that a breach of any of the covenants contained in
this Section 10 will cause irreparable injury to the Collateral Agent and the Holders, that the Collateral Agent and the Holders have no adequate remedy at law in respect of such breach and, as a consequence, that each and every covenant
contained in this Section 10 shall be specifically enforceable against Pledgor and, to the fullest extent permitted by law, Pledgor hereby waives and agrees not to assert any defenses against an action for specific performance of such covenants
except for a defense that no Event of Default has occurred and is continuing. 
 (c) Except as expressly provided elsewhere in this
Agreement, all proceeds received by the Collateral Agent in respect of any sale, any collection from, or other realization upon all or any part of the Collateral shall be applied in full or in part by the Collateral Agent against, the Secured
Obligations in the following order of priority: first, to the payment of all costs and expenses of such sale, collection or other realization, including reasonable compensation to the Collateral Agent and its agents and counsel, and all other
expenses, liabilities and advances made or incurred by the Collateral Agent in connection therewith, and all amounts for which the 
  

 12 

 
Collateral Agent is entitled to indemnification hereunder (in its capacity as the Collateral Agent and not as a Holder) and all advances made by the
Collateral Agent hereunder for the account of the Pledgor, and to the payment of all costs and expenses paid or incurred by the Collateral Agent in connection with the exercise of any right or remedy hereunder or under the Notes, all in accordance
with the terms hereof or thereof; second, to the extent of any excess of such proceeds, to the payment of all other Secured Obligations (first to interest, then to principal, and then to any remaining Secured Obligations) for the ratable
benefit of the Holders; and third, to the extent of any excess of such proceeds, to the payment to or upon the order of the Pledgor or to whosoever may be lawfully entitled to receive the same or as a court of competent jurisdiction may
direct. 
 Section 11. The Collateral Agent. The Collateral Agent has been appointed to act as Collateral Agent hereunder by the
Holders. The Collateral Agent shall be obligated, and shall have the right hereunder, to make demands, to give notices, to exercise or refrain from exercising any rights, and to take or refrain from taking any action (including, without limitation,
the release or substitution of Collateral), solely in accordance with this Agreement and the Notes and the Note Purchase Agreement. In exercising or refraining from exercising any rights or taking or refraining from taking any discretionary action
hereunder, including the exercise of remedies pursuant to Section 10, the Collateral Agent shall act in accordance with instructions provided in writing by Holders holding more than 50% of the outstanding aggregate principal amount of the Notes
(“Requisite Holders”), and shall not be obligated to exercise any such rights or take any such action absent such instructions. In furtherance of the foregoing provisions of this Section, each Holder, by its acceptance of the
benefits hereof, agrees that it shall have no right individually to realize upon any of the Collateral hereunder, it being understood and agreed by each Holder that all rights and remedies hereunder may be exercised solely by the Collateral Agent
for the benefit of the Holders in accordance with the terms of this Section. The Collateral Agent may be removed at any time with or without cause by an instrument or concurrent instruments in writing delivered to Pledgor and the Collateral Agent
signed by Requisite Holders, and may resign at any time by an instrument in writing delivered to Pledgor and each Holder by the Collateral Agent. No such removal or resignation shall become effective until a successor Collateral Agent has been
appointed pursuant to this paragraph and has accepted such appointment. Upon any such removal or resignation, Requisite Holders shall have the right, upon five (5) Business Days’ notice to the Collateral Agent, following receipt of the
Pledgor’s consent (which shall not be unreasonably withheld or delayed and which shall not be required while an Event of Default exists), to appoint a successor Collateral Agent. If an instrument of acceptance by a successor Collateral Agent
shall not have been delivered to the resigning Collateral Agent within thirty (30) days after the giving of such notice of resignation, the resigning Collateral Agent may petition any court of competent jurisdiction for the appointment of a
successor Collateral Agent. Upon the acceptance of any appointment as Collateral Agent under the terms of the Notes by a successor Collateral Agent, such successor Collateral Agent shall thereupon succeed to and become vested with all the rights,
powers, privileges and duties of the removed or resigning Collateral Agent under this Agreement, and the removed or resigning Collateral Agent under this Agreement shall promptly (i) transfer to such successor Collateral Agent all sums held in
the Account and all other items of Collateral held hereunder, together with all records and other documents necessary or appropriate in connection with the performance of the duties of the successor Collateral Agent under this Agreement, and
(ii) execute and deliver to such successor Collateral Agent such amendments to financing 

  

 13 

 
statements, and take such other actions, as may be necessary or appropriate in connection with the assignment to such successor Collateral Agent of the
security interests created hereunder, whereupon such removed or resigning Collateral Agent shall be discharged from its duties and obligations under this Agreement. On or prior to such acceptance, Pledgor shall use its best efforts to secure
execution by the Account Debtor of an AT&T Notice and Consent substantially in the form of Exhibit B hereto in favor of such successor Collateral Agent. After any removed or resigning Collateral Agent’s resignation or removal hereunder as
the Collateral Agent, the provisions of this Agreement shall inure to its benefit as to any actions taken or omitted to be taken by it under this Agreement while it was the Collateral Agent hereunder. By their acceptance of the benefits hereof, each
Holder hereby authorizes the Collateral Agent to release any security interest created under this Agreement upon any item of Collateral pursuant to Section 3 hereof. 
 Section 12. Fees; Expenses. 
 (a) Pledgor shall pay to the Collateral Agent the fees specified in
the fee schedule attached as Exhibit C hereto (the “Fee Schedule”) at the times and in the manner provided therein in respect of each such fee. For the avoidance of doubt, Pledgor shall pay at closing (i) the “Acceptance
Fee,” (ii) the “Registrar and Paying Agent Fees” and “Collateral Agent” fee in advance in respect of the first year of this Agreement, and (iii) the “Legal Expenses” (in each case as described in the Fee
Schedule). For purposes of the Fee Schedule, “Legal Expenses” shall include the amount of any and all reasonable fees and expenses, including, without limitation, the reasonable fees, expenses and disbursements of counsel, experts and
agents retained by the Collateral Agent, that the Collateral Agent may incur in connection with the preparation, review and negotiation of this Agreement. By executing and delivering this Agreement, Pledgor agrees that it shall be deemed to have
executed and delivered the Fee Schedule and shall be bound thereby in all respects. 
 (b) Pledgor will promptly upon demand pay to the
Collateral Agent the amount of any and all reasonable fees and expenses, including, without limitation, the reasonable fees, expenses and disbursements of counsel, experts and agents retained by the Collateral Agent, that the Collateral Agent may
incur in connection with (a) the custody or preservation of, or the sale of, collection from, or other realization upon, any of the Collateral, (b) the exercise or enforcement of any of the rights of the Collateral Agent hereunder or
(c) the failure by Pledgor to perform or observe any of the provisions hereof. 
 (c) All payments of fees, expenses or other amounts
made by Pledgor to the Collateral Agent in respect of any liabilities outstanding under this Agreement (excluding principal, interest and premium on the Note) shall be made free and clear of, and without any deduction or withholding for or on
account of, any present or future income or other taxes, levies, imposts, duties, charges, assessments, fees or withholdings (collectively, “Taxes”) now or hereafter imposed, levied or assessed by any governmental authority,
excluding only income taxes imposed on the Collateral Agent by the United States of America or any jurisdiction located therein based on the Collateral Agent’s income connected to operations in such jurisdiction generally. If any such
non-excluded Taxes (“Non-Excluded Taxes”) are required to be withheld from any amounts payable to the Collateral Agent by Pledgor hereunder, the amounts so payable to the Collateral Agent shall be increased to the extent necessary
to yield to 

  

 14 

 
the Collateral Agent (after payment of all Non-Excluded Taxes) an amount equal to the sum it would have received had no such deductions for Non-Excluded
Taxes been made. Whenever any Non-Excluded Taxes are payable by Pledgor as herein provided, Pledgor shall promptly and in any event within 60 days of such payment send to the Collateral Agent a certified copy of an original official receipt received
by Pledgor or other evidence reasonably acceptable to the Collateral Agent showing the payment thereof. If Pledgor fails to pay any Non-Excluded Taxes when due to the appropriate taxing authority or if Pledgor fails to remit to the Collateral Agent
the required receipts or other required evidence as indicated, Pledgor shall indemnify the Collateral Agent for any incremental Taxes, interest or penalties that many become payable by the Collateral Agent as a result of any such failure on
Pledgor’s part. 
 (d) To the extent of funds available in the Account, the Collateral Agent may pay out of the Account, any and all
Taxes or levies in the nature of Taxes imposed by any governmental authority on income or any other property in the Account. In the event there are insufficient funds available in the Account to pay such Taxes, the Collateral Agent will notify
Pledgor of the amount of the shortfall and Pledgor shall furnish to the Collateral Agent funds in the amount of such shortfall. Pledgor will furnish to the Collateral Agent such information and execute such documents as the Collateral Agent may
request in connection with the payment of any such Taxes or levies. Pledgor shall deliver to the Collateral Agent either (i) an accurate and complete original signed copy of Internal Revenue Service (“IRS”) Form W-8BEN (or any
successor form or forms) either certifying that it is entitled to benefits under an income tax treaty to which the United States is a party that reduces the rate of withholding tax on payments of interest to zero, or together with a statement
certifying that such Pledgor is not a bank described in Section 881(c)(3)(A) of the Code, or (ii) an accurate and complete original signed copy of IRS Form W-8ECI (or any successor form or forms) certifying that the income (on which such
Taxes are being paid pursuant to this Section 12(d)) is effectively connected with the conduct of a trade or business in the United States, and such other related forms as the Collateral Agent may reasonably request, dated the date hereof or
each such subsequent date, as appropriate. In addition, Pledgor shall deliver to the Collateral Agent (i) an accurate and complete signed copy of Form W-8BEN (or any successor form or forms) either claiming relief from U.S. withholding tax in
respect of amounts payable hereunder under an income tax treaty or accompanied by a statement certifying that such Pledgor is not a bank described in Section 881(c)(3)(A) of the Code or an accurate and complete signed copy of Form W-8ECI (or
any successor form or forms), as the case may be, at any time that a change in circumstances renders the previous form inaccurate in any respect and (ii) upon request of the Collateral Agent, such other forms or similar documentation as may be
required from time to time by any applicable law, treaty, rule or regulation in order to establish Pledgor’s tax status and to secure an exemption from or reduction in the rate of U.S. withholding tax. In addition, Pledgor shall deliver such
applicable form to the Collateral Agent promptly upon the obsolescence or invalidity of any form previously delivered by Pledgor. Pledgor shall promptly notify the Collateral Agent at any time it determines that any facts deemed to be represented to
the Collateral Agent pursuant to this subsection are no longer applicable. In the absence of such exemption being available, if required by law, the Collateral Agent may withhold and withdraw from the Account the amount of any such Taxes properly
payable to the applicable governmental authority and cause the amount so withheld to be remitted to the appropriate taxing authority in the manner and at the times required by law. 
  

 15 

 (e) Notwithstanding the occurrence of an Event of Default, the provisions of this Section 12 shall
continue to apply for the benefit of the Collateral Agent. 
 Section 13. Miscellaneous Provisions. 
 Section 13.1 Notices. Any notice or other communication given hereunder shall be sufficiently given if in writing and delivered in person or
mailed by first class mail, commercial courier service or fax communication, addressed as follows: 
  

			
	to Pledgor:	  	Alestra, S. de R.L. de C.V.
		  	Av. Lázaro Cárdenas No. 2321, 9th
Floor
		  	Col. Residencial San Agustin
		  	Garza Garcia N.L. 66260, México
		  	Tel.:
		  	Attention: Mr. Patricio de la Garza
		  	Fax Number: +818 625-2303
		
	to the Collateral Agent:	  	
		
		  	Deutsche Bank Trust Company Americas
		  	60 Wall Street
		  	New York, New York 10005, U.S.A.
		  	Attention: Trust & Securities Services – Project Finance
		  	Tel.: 908-608-3137
		  	Fax Number: 732-578-4636

 All such notices and other communications sent in accordance with this Section 13.1 shall be effective upon
receipt by a responsible party at the address or fax number specified above. 
 Section 13.2 Severability. The provisions of this
Agreement are severable, and if any clause or provision shall be held invalid, illegal or unenforceable in whole or in part in any jurisdiction, then, to the fullest extent permitted by law, such invalidity or unenforceability shall affect in that
jurisdiction only such clause or provision, or part hereof, and shall not in any manner affect such clause or provision in any other jurisdiction or any other clause or provision of this Agreement in any jurisdiction. 
 Section 13.3 Headings. The headings in this Agreement have been inserted for convenience of reference only, are not to be considered a part
hereof and shall in no way modify or restrict any of the terms or provisions hereof. 
 Section 13.4 Counterparts. This Agreement
may be signed in two or more counterparts, each of which shall be deemed an original, but all of which shall together constitute one and the same agreement. 
 Section 13.5 Benefits of Agreement. Nothing in this Agreement, express or implied, shall give to any Person, other than the Holders, the parties hereto and their successors hereunder, any benefit or any
legal or equitable right, remedy or claim under this Agreement. 
  

 16 

 Section 13.6 Amendments, Waivers and Consents. This Agreement may not be modified or amended
except by written agreement executed by Pledgor, the Collateral Agent and each Holder. Neither the Collateral Agent nor any Holder shall be deemed, by any act, delay, indulgence, omission or otherwise, to have waived any right or remedy hereunder or
to have acquiesced in any Event of Default or in any breach of any of the terms and conditions hereof. Failure of the Collateral Agent or the Holders to exercise, or delay in exercising, any right, power or privilege hereunder shall not preclude any
other or further exercise thereof or the exercise of any other right, power or privilege. A waiver by the Collateral Agent or the Holders of any right or remedy hereunder on any one occasion shall not be construed as a bar to any right or remedy
that the Collateral Agent or the Holders would otherwise have on any future occasion. The rights and remedies herein provided are cumulative, may be exercised singly or concurrently and are not exclusive of any rights or remedies provided by law.

 Section 13.7 Signatures. Pledgor agrees to provide the Collateral Agent with specimen signatures of those persons authorized,
from time to time, to give instructions to the Collateral Agent under this Agreement and the Collateral Agent shall not incur any liability with respect to any action taken in reliance upon any written instructions which the Collateral Agent in good
faith believes to be genuine and to have been signed by a duly authorized person. 
 Section 13.8 Instructions. The Collateral
Agent shall be fully protected in acting on written instructions from Pledgor and/or any Holder as herein provided. All such instructions shall be delivered to the Collateral Agent sufficiently in advance to accord to the Collateral Agent reasonable
time to act thereon. The Collateral Agent shall not be liable for any expenses, losses or damages Pledgor, any Holder or any third person may suffer or incur by reason of any signature by an unauthorized person on, or forgery or wrongful alteration
of, a written instrument or inaccuracy, incompleteness or falsity of data transmitted by computer tape or terminal or in a written instrument if the Collateral Agent believes in good faith that such instrument, instruction or data was for the
account or benefit of Pledgor or such Holder, as applicable, or that the writing was signed by, or the data or computer tape was transmitted by, an appropriately authorized person. 
 Section 13.9 Interpretation of Agreement. To the fullest extent permitted by applicable law, acceptance of or acquiescence in a course of
performance rendered under this Agreement shall not be relevant to determine the meaning of this Agreement even though the accepting or acquiescing party had knowledge of the nature of the performance and opportunity for objection. 
 Section 13.10 Continuing Security Interest; Termination. 
 (a) This Agreement shall be binding upon Pledgor, its transferees, successors and assigns, and shall inure, together with the rights and remedies of the Collateral Agent and the Holders hereunder, to the benefit of
the Collateral Agent, each Holder and their respective successors, transferees and assigns; provided that this Agreement shall not be assignable by Pledgor or the Collateral Agent without the prior written consent of the other party and each
Holder. 
 (b) This Agreement shall create a continuing security interest in and to the Collateral and shall, unless otherwise provided in
this Agreement, remain in full force and effect until the 

  

 17 

 
payment in full in cash of the Secured Obligations. At such time, this Agreement (other than Pledgor’s obligations under Sections 9 and 11 hereof) shall
terminate and the Collateral Agent shall promptly transfer to Pledgor all of the Collateral hereunder that has not been sold, disposed of, retained or applied by or on behalf of the Holders in accordance with the terms of this Agreement and take all
other actions that are necessary to release the security interest created by this Agreement in and to the Collateral, including the execution and delivery of all termination statements necessary to terminate any financing or continuation statements
filed with respect to the Collateral. Such transfer shall be without warranty by or recourse to the Collateral Agent in its capacity as such, except as to the absence of any liens on the Collateral created by or arising through the Collateral Agent,
and shall be at the expense of Pledgor. 
 Section 13.11 Survival. All representations, warranties and covenants of Pledgor
contained herein shall survive the execution and delivery of this Agreement, and Sections 4, 6, 12 and 13 hereof shall survive the termination of this Agreement. 
 Section 13.12 Waivers. Pledgor, to the fullest extent permitted by applicable law, waives presentment and demand for payment of any of the Obligations, protest and notice of dishonor or default with
respect to any of the Obligations, and all other notices to which Pledgor might otherwise be entitled, except as otherwise expressly provided herein. 
 Section 13.13 Final Expression. This Agreement, together with any other agreement executed in connection herewith, is intended by the parties as a final expression of this Agreement and is intended as a
complete and exclusive statement of the terms and conditions thereof. 
 Section 13.14 Waiver of Immunity. To the extent, if any,
to which Pledgor or any of its respective properties may be deemed to have or hereafter to acquire immunity, on the ground of sovereignty or otherwise, from any judicial process or proceeding to enforce this Agreement or to collect amounts due
hereunder (including, without limitation, attachment proceedings prior to judgment or in aid of execution) in any jurisdiction, Pledgor hereby waives such immunity and agrees not to claim the same. 
 Section 13.15 Confidentiality. The Collateral Agent agrees to maintain the confidentiality of the Information (as defined below), except that
the Information may be disclosed (i) to its and its Affiliates’ directors, officers, employees and agents, including accountants, legal counsel and other advisors (it being understood that the Persons to whom such disclosure is made will
be informed of the confidential nature of such Information and instructed to keep such Information confidential), (ii) to the extent requested by any governmental entity or regulatory authority, (iii) to the extent required by applicable
laws or regulations or by any subpoena or similar legal process, (iv) to any other party to this Agreement, (v) in connection with the exercise of any remedies hereunder or any suit, action or proceeding relating to this Agreement, the
Service Agreements or related documents or the enforcement of rights hereunder, (vi) with the consent of the Pledgor or (vii) to the extent such Information (A) becomes publicly available other than as a result of a breach of this
paragraph or (B) becomes available to the Collateral Agent on a nonconfidential basis from a source other than the Pledgor. For purposes of this paragraph, “Information” means all written or oral information received by the
Collateral Agent from the Pledgor or AT&T Corp. relating to the Service Agreements, other than any such information that is available to the Collateral Agent on a nonconfidential basis prior to its disclosure by the Pledgor or AT&T Corp.

  

 18 

 Section 13.16 Governing Law; Submission to Jurisdiction; Waiver of Jury Trial. 
 (a) THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED ACCORDING TO THE INTERNAL LAWS OF THE STATE OF NEW YORK (EXCLUDING ANY CONFLICT OF LAWS PRINCIPLES
THEREOF OTHER THAN SECTION 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATION LAW). 
 (b) ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF
THIS AGREEMENT MAY BE INSTITUTED IN ANY STATE OR FEDERAL COURT SITTING IN THE CITY OF NEW YORK, STATE OF NEW YORK, UNITED STATES OF AMERICA, AND PLEDGOR IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF ANY SUCH COURT IN ANY SUCH SUIT, ACTION
OR PROCEEDING AND WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH A COURT AND ANY CLAIM THAT SUCH SUIT, ACTION OR
PROCEEDING WAS BROUGHT IN AN INCONVENIENT FORUM. 
 (c) TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, PLEDGOR WAIVES THE POSTING OF ANY
BOND OTHERWISE REQUIRED OF THE COLLATERAL AGENT OR ANY HOLDER OF NOTES IN CONNECTION WITH ANY JUDICIAL PROCESS OR PROCEEDING TO ENFORCE ANY JUDGMENT OR OTHER COURT ORDER PERTAINING TO THIS AGREEMENT OR ANY RELATED AGREEMENT OR DOCUMENT ENTERED IN
FAVOR OF THE COLLATERAL AGENT OR ANY HOLDER OF NOTES, OR TO ENFORCE BY SPECIFIC PERFORMANCE, TEMPORARY RESTRAINING ORDER OR PRELIMINARY OR PERMANENT INJUNCTION, THIS AGREEMENT OR ANY RELATED AGREEMENT OR DOCUMENT BETWEEN PLEDGOR AND THE COLLATERAL
AGENT. 
  

 19 

 IN WITNESS WHEREOF, Pledgor and the Collateral Agent have each caused this Agreement to be duly executed and delivered as
of the date first above written. 
  

			
	Pledgor:
	
	ALESTRA, S. de R.L. de C.V.
		
	By:	 	 /s/ Sergio Bravo

	Name:	 	Sergio Bravo
	Title:	 	Treasurer
	
	Collateral Agent:
	
	DEUTSCHE BANK TRUST COMPANY
	AMERICAS, as Collateral Agent
		
	By:	 	 /s/ Richard L. Buckwalter

	Name:	 	Richard L. Buckwalter
	Title:	 	Vice President
		
	By:	 	 /s/ Annie Jaghatspanyan

	Name:	 	Annie Jaghatspanyan
	Title:	 	Assistant Vice President

 EXHIBIT A 
 NOTE PURCHASE AGREEMENT 
  

 1 

 EXHIBIT B 
 FORM OF AT&T NOTICE AND CONSENT 
  

 1 

 EXHIBIT C 
 FEE SCHEDULE 
  

 1

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