Document:

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EXHIBIT 10.1

NETGURU, INC.

COMPENSATION APPROVED BY BOARD OF DIRECTORS AND COMPENSATION COMMITTEE ON AUGUST
31, 2005

Executive Officers/Key Employees:
---------------------------------

(payable contingent upon and within five business days following the closing of
the Proposed Asset Sale)

   Bruce Nelson, Chief Financial Officer                            $    25,000
   Clara Young, Secretary                                                 8,333

Non-Employee Directors/Special Committee Board Members
------------------------------------------------------

(payable in five equal consecutive monthly installments of $8,400 each,
beginning August 31, 2005)

   Dean McCormick                                                        42,000
   Stan Corbett                                                          42,000
   Ben Eazzetta                                                          42,000
                                                                     -----------
Total compensation:                                                  $  159,333
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Exhibit 10.13    
    

ASSIGNMENT  

        We hereby mutually agree to the assignment (the "Assignment") of the 2003 Incentive and Nonstatutory Stock Option Plan of China Hospitals, Inc., a Delaware
corporation, dated December 30, 2002 and all options granted under the Plan, from China Hospitals, Inc., a Delaware corporation to China Hospitals, Inc., a Cayman Islands
corporation. 

	Dated: December 23, 2004	 	 
	 	 	 
	China Hospitals, Inc.,

A Delaware corporation	 	 
	 	 	 
	/s/ Frank Hu
 BY: Frank Hu

ITS: CEO, Chairman	 	 
	 	 	 
	China Hospitals, Inc.,

A Cayman Islands corporation	 	 
	 	 	 
	/s/ Frank Hu
 BY: Frank Hu

ITS: CEO, Chairman	 	 

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Exhibit 10.13Exhibit 4.1

 

 

MULTICANAL S.A.,

 

Company,

 

LAW DEBENTURE TRUST COMPANY OF NEW YORK,

 

Trustee, Co-Registrar and

Principal Paying Agent,

 

and

 

HSBC Bank Argentina S.A.,

 

Registrar and Paying Agent

 

 

INDENTURE

 

Dated as of

 

Relating to

 

DEBT SECURITIES

(Issuable in Series)

 

 

 

CROSS REFERENCE SHEET(1)

 

 

Reconciliation and
tie between the Trust Indenture Act of 1939, as amended, and the Indenture,
dated as of                 .

 

	
  Section of the Act

  	
   

  	
  Section of Indenture

  
	
   

  	
   

  	
   

  
	
  310(a)(1) and
  (2)

  	
   

  	
  7.9

  
	
  310(a)(3) and
  (4)

  	
   

  	
  Inapplicable

  
	
  310(a)(5)

  	
   

  	
  7.8, 7.9

  
	
  310(b)

  	
   

  	
  7.8, 7.10(a), (b) and
  (d)

  
	
  310(c)

  	
   

  	
  Inapplicable

  
	
  311(a)

  	
   

  	
  7.13

  
	
  311(b)

  	
   

  	
  7.13

  
	
  311(c)

  	
   

  	
  Inapplicable

  
	
  312(a)

  	
   

  	
  5.1, 5.2(a)

  
	
  312(b)

  	
   

  	
  5.2(b)

  
	
  312(c)

  	
   

  	
  5.2(c)

  
	
  313(a)

  	
   

  	
  5.3(a)

  
	
  313(b)

  	
   

  	
  5.3(a)

  
	
  313(c)

  	
   

  	
  5.3(a)

  
	
  313(d)

  	
   

  	
  5.3(b)

  
	
  314(a)

  	
   

  	
  4.14, 5.3(c)

  
	
  314(b)

  	
   

  	
  Inapplicable

  
	
  314(c)(1) and
  (2)

  	
   

  	
  12.5

  
	
  314(c)(3)

  	
   

  	
  Inapplicable

  
	
  314(d)

  	
   

  	
  Inapplicable

  
	
  314(e)

  	
   

  	
  12.5

  
	
  314(f)

  	
   

  	
  Inapplicable

  
	
  315(a), (c) and
  (d)

  	
   

  	
  7.1

  
	
  315(b)

  	
   

  	
  6.11

  
	
  315(e)

  	
   

  	
  6.12

  
	
  316(a)(1)

  	
   

  	
  6.9

  
	
  316(a)(2)

  	
   

  	
  Not Required

  
	
  316(a)(last
  sentence)

  	
   

  	
  8.4

  
	
  316(b)

  	
   

  	
  6.3

  
	
  316(c)

  	
   

  	
  9.7

  
	
  317(a)

  	
   

  	
  6.3

  
	
  317(b)

  	
   

  	
  11.2, 11.4

  
	
  318(a)

  	
   

  	
  12.7

  

 

(1)                                  This
Cross Reference Sheet shall not, for any purpose, be deemed to be a part of the
Indenture.

 

 

TABLE OF CONTENTS

 

	
  RECITALS

  	
   

  
	
   

  	
   

  
	
  Recitals of the
  Company

  	
   

  
	
  Recitals of the
  Trustee

  	
   

  
	
  ARTICLE ONE

  DEFINITIONS

  	
   

  
	
   

  	
   

  
	
  SECTION 1.1
  Definitions

  	
   

  
	
  Acceleration Notice

  	
   

  
	
  Acquired Indebtedness

  	
   

  
	
  Additional Amounts

  	
   

  
	
  Affiliate

  	
   

  
	
  Annualized Pro Forma Consolidated Operating Cash Flow

  	
   

  
	
  Reference Period

  	
   

  
	
  Argentina

  	
   

  
	
  Argentine Government

  	
   

  
	
  Asset Acquisition

  	
   

  
	
  Asset
  Sale

  	
   

  
	
  Authenticating Agent

  	
   

  
	
  Authorized Newspaper

  	
   

  
	
  Authorized Officer

  	
   

  
	
  Average
  Life

  	
   

  
	
  Bearer Debt Security

  	
   

  
	
  Board of Directors

  	
   

  
	
  Board Resolution

  	
   

  
	
  Buenos
  Aires

  	
   

  
	
  Business
  Day

  	
   

  
	
  Cable/Telecommunications Business

  	
   

  
	
  Capital
  Stock

  	
   

  
	
  Capitalized Lease

  	
   

  
	
  Capitalized Lease Obligation

  	
   

  

 

 

	
  Cash Equivalents

  	
   

  
	
  Certificated Debt Security

  	
   

  
	
  Clearstream, Luxembourg

  	
   

  
	
  CNV

  	
   

  
	
  Co-Registrar

  	
   

  
	
  Commission

  	
   

  
	
  Common Depositary

  	
   

  
	
  Common
  Stock

  	
   

  
	
  Company

  	
   

  
	
  Company Request or Company Order

  	
   

  
	
  Consolidated Income Tax Expense

  	
   

  
	
  Consolidated Interest Expense

  	
   

  
	
  Consolidated Net Income

  	
   

  
	
  Consolidated Net Worth

  	
   

  
	
  Consolidated Operating Cash Flow

  	
   

  
	
  control

  	
   

  
	
  Corporate Trust Office

  	
   

  
	
  Corporation

  	
   

  
	
  coupon

  	
   

  
	
  Currency Agreement

  	
   

  
	
  Debt Security and Debt Securities

  	
   

  
	
  Debt Security Register

  	
   

  
	
  Default

  	
   

  
	
  Defaulted Interest

  	
   

  
	
  Depositary

  	
   

  
	
  Disqualified Stock

  	
   

  
	
  DTC

  	
   

  
	
  Euroclear

  	
   

  
	
  Event of Default

  	
   

  
	
  Exchange
  Act

  	
   

  
	
  Exchange
  Date

  	
   

  
	
  Exchange Rate Agent

  	
   

  
	
  Fair Market Value

  	
   

  

 

ii

 

	
  GAAP

  	
   

  
	
  Global Bearer Debt Security

  	
   

  
	
  Global Debt Security

  	
   

  
	
  Global Registered Debt Security

  	
   

  
	
  Governmental Agency

  	
   

  
	
  Government Obligations

  	
   

  
	
  Guarantee

  	
   

  
	
  Guaranteed Indebtedness

  	
   

  
	
  Guarantor

  	
   

  
	
  Holder, Holder of Debt Securities

  	
   

  
	
  Incur

  	
   

  
	
  Indebtedness

  	
   

  
	
  Indenture

  	
   

  
	
  Independent Financial Advisor

  	
   

  
	
  Institutional Accredited Investor

  	
   

  
	
  Interest Payment Date

  	
   

  
	
  Interest Rate Protection Obligations

  	
   

  
	
  Investment

  	
   

  
	
  Issue
  Date

  	
   

  
	
  Lien

  	
   

  
	
  Material Adverse Effect

  	
   

  
	
  Maturity

  	
   

  
	
  Member Organization

  	
   

  
	
  Negotiable Obligations Law

  	
   

  
	
  Officer

  	
   

  
	
  Officers’ Certificate

  	
   

  
	
  Opinion of Counsel

  	
   

  
	
  Outstanding

  	
   

  
	
  pari
  passu

  	
   

  
	
  Participant

  	
   

  
	
  Paying
  Agent

  	
   

  
	
  Permanent Global Bearer Debt Security

  	
   

  
	
  Permitted Indebtedness

  	
   

  

 

iii

 

	
  Permitted Lien

  	
   

  
	
  Permitted Subsidiary Indebtedness

  	
   

  
	
  Person

  	
   

  
	
  Pesos

  	
   

  
	
  Predecessor Debt Security

  	
   

  
	
  Principal Paying Agent

  	
   

  
	
  Private Note and Private Notes

  	
   

  
	
  Property

  	
   

  
	
  Public Debt Security

  	
   

  
	
  Redemption Date

  	
   

  
	
  Redemption Price

  	
   

  
	
  Registered Debt Security

  	
   

  
	
  Registrar

  	
   

  
	
  Regular Record Date

  	
   

  
	
  Regulation S Global Registered Debt Security

  	
   

  
	
  Related Person

  	
   

  
	
  Responsible Officer

  	
   

  
	
  Restricted Certificated Debt Security

  	
   

  
	
  Restricted Global Registered Debt Security

  	
   

  
	
  Sale and Leaseback Transaction

  	
   

  
	
  Securities Act

  	
   

  
	
  Significant Subsidiary

  	
   

  
	
  Special Record Date

  	
   

  
	
  Stated Maturity

  	
   

  
	
  Subordinated Indebtedness

  	
   

  
	
  Subsidiary

  	
   

  
	
  Subsidiary Guarantee

  	
   

  
	
  Supervisory Board

  	
   

  
	
  Taxes

  	
   

  
	
  Temporary Global Bearer Debt Security

  	
   

  
	
  Total Consolidated Indebtedness

  	
   

  
	
  Trade Payables

  	
   

  
	
  Transaction Date

  	
   

  

 

iv

 

	
  Transfer Agent

  	
   

  
	
  Trust Indenture Act or TIA

  	
   

  
	
  Trustee

  	
   

  
	
  United
  States

  	
   

  
	
  U.S. Dollars, United States Dollars, U.S.$ and the
  symbol $

  	
   

  
	
  U.S. Global Registered Debt Security

  	
   

  
	
  Voting Stock

  	
   

  
	
  Wholly-Owned

  	
   

  
	
   

  	
   

  
	
  ARTICLE TWO

  DEBT SECURITY FORMS

  	
   

  
	
   

  	
   

  
	
  SECTION 2.1
  Forms Generally

  	
   

  
	
  SECTION 2.2
  Denominations

  	
   

  
	
   

  	
   

  
	
  ARTICLE THREE

  THE DEBT SECURITIES

  	
   

  
	
   

  	
   

  
	
  SECTION 3.1 Aggregate Principal Amount; Title and
  Terms

  	
   

  
	
  SECTION 3.2 Authentication, Delivery and Dating
  of Debt Securities

  	
   

  
	
  SECTION 3.3 Execution of Debt Securities and Any
  Coupons Appertaining Thereto

  	
   

  
	
  SECTION 3.4 Certificate of Authentication

  	
   

  
	
  SECTION 3.5 Temporary Debt Securities

  	
   

  
	
  SECTION 3.6 Bearer Debt Securities; Global Registered
  Debt Securities; Book-Entry Provisions; Certificated Debt Securities

  	
   

  
	
  SECTION 3.7 Payment of Principal, Premium and
  Interest; Interest Rights Preserved

  	
   

  
	
  SECTION 3.8 Computation of Interest

  	
   

  
	
  SECTION 3.9 Registration of Transfer and Exchange

  	
   

  
	
  SECTION 3.10 Mutilated, Defaced, Destroyed, Lost
  and Stolen Debt Securities

  	
   

  
	
  SECTION 3.11 Cancellation of Debt Securities;
  Destruction Thereof

  	
   

  
	
  SECTION 3.12 Persons Deemed Owners

  	
   

  
	
  SECTION 3.13 CUSIP, CINS and Common Code Numbers

  	
   

  
	
   

  	
   

  
	
  ARTICLE FOUR

  COVENANTS

  	
   

  
	
   

  	
   

  
	
  SECTION 4.1 Payment of Principal, Premium, if
  any, and Interest

  	
   

  

 

v

 

	
  SECTION 4.2 Maintenance of Office or Agency;
  Money for Debt Security Payments to Be Held in Trust

  	
   

  
	
  SECTION 4.3 Maintenance of Existence and
  Properties

  	
   

  
	
  SECTION 4.4 Payment of Taxes and Other Claims

  	
   

  
	
  SECTION 4.5 Maintenance of Insurance

  	
   

  
	
  SECTION 4.6 Limitation on Indebtedness

  	
   

  
	
  SECTION 4.7 Limitation on Dividends and Other
  Payment Restrictions Affecting Significant Subsidiaries

  	
   

  
	
  SECTION 4.8 Limitation on the Issuance and Sale
  of Capital Stock of Significant Subsidiaries

  	
   

  
	
  SECTION 4.9 Limitation on Issuances of Guarantees
  by Subsidiaries

  	
   

  
	
  SECTION 4.10 Limitation on Transactions with
  Shareholders and Affiliates

  	
   

  
	
  SECTION 4.11
  Limitation on Liens

  	
   

  
	
  SECTION 4.12 Limitations on Sale and Leaseback
  Transactions

  	
   

  
	
  SECTION 4.13 Limitation on Asset Sales

  	
   

  
	
  SECTION 4.14
  Reports to Holders

  	
   

  
	
  SECTION 4.15 Compliance with Laws and Other
  Agreements

  	
   

  
	
  SECTION 4.16 Maintenance of Books and Records

  	
   

  
	
  SECTION 4.17 Consolidation, Merger and Sale of
  Assets

  	
   

  
	
   

  	
   

  
	
  ARTICLE FIVE

  HOLDERS’ LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE

  	
   

  
	
   

  	
   

  
	
  SECTION 5.1 Company to Furnish Trustee
  Information as to Names and Addresses of Holders

  	
   

  
	
  SECTION 5.2 Preservation of Information;
  Communications to Holders

  	
   

  
	
  SECTION 5.3 Reports by the Trustee

  	
   

  
	
   

  	
   

  
	
  ARTICLE SIX

  REMEDIES OF THE TRUSTEE AND HOLDERS IN EVENT OF DEFAULT

  	
   

  
	
   

  	
   

  
	
  SECTION 6.1 Event of Default Defined;
  Acceleration of Maturity

  	
   

  
	
  SECTION 6.2 Acceleration of Maturity; Rescission
  and Annulment

  	
   

  
	
  SECTION 6.3 Collection of Indebtedness and Suits
  for Enforcement by Trustee

  	
   

  
	
  SECTION 6.4 Application of Moneys Collected

  	
   

  
	
  SECTION 6.5 Restoration of Rights on Abandonment
  of Proceedings

  	
   

  
	
  SECTION 6.6 Limitations on Suits by Holders

  	
   

  

 

vi

 

	
  SECTION 6.7 Unconditional Right of Holders to
  Receive Principal, Premium, if any, Additional Amounts and Interest

  	
   

  
	
  SECTION 6.8 Powers and Remedies Cumulative; Delay
  or Omission Not Waiver of Default

  	
   

  
	
  SECTION 6.9
  Control by Holders

  	
   

  
	
  SECTION 6.10
  Waiver of Defaults

  	
   

  
	
  SECTION 6.11 Trustee to Give Notice of Default,
  But May Withhold in Certain Circumstances

  	
   

  
	
  SECTION 6.12 Undertaking for Costs

  	
   

  
	
  SECTION 6.13
  Currency Indemnity

  	
   

  
	
   

  	
   

  
	
  ARTICLE SEVEN

  CONCERNING THE TRUSTEE

  	
   

  
	
   

  	
   

  
	
  SECTION 7.1 Duties and Responsibilities of the
  Trustee; During Default; Prior to Default

  	
   

  
	
  SECTION 7.2 Certain Rights of the Trustee

  	
   

  
	
  SECTION 7.3 Trustee Not Responsible for Recitals,
  Disposition of Debt Securities or Application of Proceeds Thereof

  	
   

  
	
  SECTION 7.4 May Hold Debt Securities;
  Collections, Etc.

  	
   

  
	
  SECTION 7.5 Moneys Held by Trustee

  	
   

  
	
  SECTION 7.6 Compensation and Indemnification of
  Trustee and Its Prior Claim

  	
   

  
	
  SECTION 7.7 Right of Trustee to Rely on Officers’
  Certificate, Etc.

  	
   

  
	
  SECTION 7.8 Qualification of Trustee; Conflicting
  Interests

  	
   

  
	
  SECTION 7.9 Corporate Trustee Required;
  Eligibility

  	
   

  
	
  SECTION 7.10 Resignation and Removal; Appointment
  of Successor Trustee

  	
   

  
	
  SECTION 7.11 Acceptance of Appointment by
  Successor Trustee

  	
   

  
	
  SECTION 7.12 Merger, Conversion, Consolidation or
  Succession to Business of Trustee

  	
   

  
	
  SECTION 7.13 Preferential Collection of Claims
  Against Company

  	
   

  
	
  SECTION 7.14 Appointment of Authenticating Agent

  	
   

  
	
   

  	
   

  
	
  ARTICLE EIGHT

  CONCERNING THE HOLDERS

  	
   

  
	
   

  	
   

  
	
  SECTION 8.1 Evidence of Acts of Holders

  	
   

  
	
  SECTION 8.2 Proof of Execution of Instruments and
  of Holding of Debt Securities

  	
   

  
	
  SECTION 8.3 Holders to Be Treated as Owners

  	
   

  

 

vii

 

	
  SECTION 8.4 Debt Securities Owned by Company
  Deemed Not Outstanding

  	
   

  
	
  SECTION 8.5 Right of Revocation of Action Taken

  	
   

  
	
   

  	
   

  
	
  ARTICLE NINE

  SUPPLEMENTAL INDENTURES AND MEETINGS OF HOLDERS

  	
   

  
	
   

  	
   

  
	
  SECTION 9.1 Supplemental Indentures Without Vote
  of Holders

  	
   

  
	
  SECTION 9.2 Supplemental Indentures with Vote of
  Holders

  	
   

  
	
  SECTION 9.3 Execution of Supplemental Indentures

  	
   

  
	
  SECTION 9.4 Effect of Supplemental Indentures;
  Notice to Holders

  	
   

  
	
  SECTION 9.5 Conformity with Trust Indenture Act

  	
   

  
	
  SECTION 9.6 Reference in Debt Securities to
  Supplemental Indentures

  	
   

  
	
  SECTION 9.7 Meetings of Holders; Modification and
  Waiver

  	
   

  
	
   

  	
   

  
	
  ARTICLE TEN

  MERGER, CONSOLIDATION AND SALE OF ASSETS

  	
   

  
	
   

  	
   

  
	
  SECTION 10.1 Merger, Consolidation and Sale of
  Assets

  	
   

  
	
  SECTION 10.2 Successor Substituted

  	
   

  
	
   

  	
   

  
	
  ARTICLE ELEVEN

  SATISFACTION AND DISCHARGE OF INDENTURE; UNCLAIMED MONEYS

  	
   

  
	
   

  	
   

  
	
  SECTION 11.1 Satisfaction and Discharge of
  Indenture

  	
   

  
	
  SECTION 11.2 Application of Trust Money

  	
   

  
	
  SECTION 11.3 Repayment of Moneys Held by Paying
  Agent

  	
   

  
	
  SECTION 11.4 Return of Moneys Held by Trustee and
  Paying Agent Unclaimed for Two Years

  	
   

  
	
   

  	
   

  
	
  ARTICLE TWELVE

  MISCELLANEOUS PROVISIONS

  	
   

  
	
   

  	
   

  
	
  SECTION 12.1 Incorporators, Shareholders,
  Officers and Directors of Company Exempt from Individual Liability

  	
   

  
	
  SECTION 12.2 Provisions of Indenture for the Sole
  Benefit of Parties, Paying Agents and Holders

  	
   

  
	
  SECTION 12.3 Successors and Assigns of Company
  Bound by Indenture

  	
   

  
	
  SECTION 12.4 Notices, Etc., to Trustee,
  Co-Registrar, Principal Paying Agent, Company and Holders; Waiver

  	
   

  
	
  SECTION 12.5 Officers’ Certificates and Opinions
  of Counsel; Statements to Be Contained Therein

  	
   

  
	
  SECTION 12.6 Payments Due on Saturdays, Sundays
  and Holidays

  	
   

  

 

viii

 

	
  SECTION 12.7 Conflict with Trust Indenture Act

  	
   

  
	
  SECTION 12.8
  Governing Law

  	
   

  
	
  SECTION 12.9 Consent to Jurisdiction and Service
  of Process

  	
   

  
	
  SECTION 12.10
  Counterparts

  	
   

  
	
  SECTION 12.11
  Effect of Headings

  	
   

  
	
  SECTION 12.12
  Separability

  	
   

  
	
  SECTION 12.13 Purchase of Notes by the Company

  	
   

  
	
   

  	
   

  
	
  ARTICLE THIRTEEN

  REDEMPTION OF DEBT SECURITIES

  	
   

  
	
   

  	
   

  
	
  SECTION 13.1 Optional Redemption

  	
   

  
	
  SECTION 13.2 Deposit of Redemption Price

  	
   

  
	
  SECTION 13.3 Debt Securities Payable on
  Redemption Date

  	
   

  
	
  SECTION 13.4 Selection of Debt Securities to Be
  Redeemed

  	
   

  
	
   

  	
   

  
	
  ARTICLE FOURTEEN

  DEFEASANCE AND COVENANT DEFEASANCE

  	
   

  
	
   

  	
   

  
	
  SECTION 14.1 Company’s Option to Effect
  Defeasance or Covenant Defeasance

  	
   

  
	
  SECTION 14.2 Defeasance and Discharge

  	
   

  
	
  SECTION 14.3 Covenant Defeasance

  	
   

  
	
  SECTION 14.4 Conditions to Defeasance or Covenant
  Defeasance

  	
   

  
	
  SECTION 14.5 Deposited Money and Government
  Obligations to Be Held in Trust; Other Miscellaneous Provisions

  	
   

  
	
  SECTION 14.6
  Reinstatement

  	
   

  

 

ix

 

EXHIBITS

 

	
  EXHIBIT A

  	
   

  	
  FORM OF DEBT SECURITY

  
	
   

  	
   

  	
   

  
	
  EXHIBIT B

  	
   

  	
  FORM OF TRUSTEE’S CERTIFICATE OF AUTHENTICATION

  
	
   

  	
   

  	
   

  
	
  EXHIBIT C

  	
   

  	
  FORM OF TRANSFER CERTIFICATE FOR TRANSFER FROM
  RESTRICTED GLOBAL REGISTERED DEBT SECURITY OR RESTRICTED CERTIFICATED DEBT
  SECURITY TO REGULATION S GLOBAL REGISTERED DEBT SECURITY

  
	
   

  	
   

  	
   

  
	
  EXHIBIT D

  	
   

  	
  FORM OF TRANSFER CERTIFICATE FOR TRANSFER FROM
  REGULATION S GLOBAL REGISTERED DEBT SECURITY OR RESTRICTED CERTIFICATED DEBT
  SECURITY TO RESTRICTED GLOBAL REGISTERED DEBT SECURITY

  
	
   

  	
   

  	
   

  
	
  EXHIBIT E-I

  	
   

  	
  FORM OF TRANSFER CERTIFICATE FOR TRANSFER FROM
  RESTRICTED GLOBAL REGISTERED DEBT SECURITY, REGULATION S GLOBAL REGISTERED
  DEBT SECURITY OR RESTRICTED CERTIFICATED DEBT SECURITY TO RESTRICTED
  CERTIFICATED DEBT SECURITY (FROM HOLDER)

  
	
   

  	
   

  	
   

  
	
  EXHIBIT E-II

  	
   

  	
  FORM OF TRANSFER CERTIFICATE FOR TRANSFER FROM
  RESTRICTED GLOBAL REGISTERED DEBT SECURITY, REGULATION S GLOBAL REGISTERED
  DEBT SECURITY OR RESTRICTED CERTIFICATED DEBT SECURITY TO RESTRICTED
  CERTIFICATED DEBT SECURITY (FROM ACQUIROR)

  
	
   

  	
   

  	
   

  
	
  EXHIBIT F-I

  	
   

  	
  FORM OF CERTIFICATE TO BE GIVEN BY PERSON
  ENTITLED TO RECEIVE BEARER SECURITY OR TO OBTAIN INTEREST PAYABLE PRIOR TO
  THE EXCHANGE DATE

  
	
   

  	
   

  	
   

  
	
  EXHIBIT F-II

  	
   

  	
  FORM OF CERTIFICATE TO BE GIVEN BY EUROCLEAR
  AND CLEARSTREAM, LUXEMBOURG IN CONNECTION WITH THE EXCHANGE OF A PORTION OF A
  TEMPORARY GLOBAL BEARER DEBT SECURITY OR TO OBTAIN INTEREST PAYABLE PRIOR TO
  THE EXCHANGE DATE

  

 

x

 

THIS INDENTURE, dated as
of                            is among Multicanal
S.A., a sociedad anónima organized, existing and
incorporated in the City of Buenos Aires (“Buenos Aires”), Argentina
under the laws of Argentina on July 26, 1991, with a term of duration
expiring on July 27, 2090, and registered with the Public Registry of
Commerce on July 26, 1991, under number 5225, Book 109 of Volume “A”
of corporations, having its principal executive offices at Avalos 2057,
(C1431DPM) Buenos Aires, Argentina (the “Company”), Law Debenture Trust
Company of New York, as trustee (the “Trustee”), co-registrar (the “Co-Registrar”)
and principal paying agent (the “Principal Paying Agent”), and HSBC Bank
Argentina S.A., as registrar (the “Registrar”) and paying agent (the “Paying
Agent”).

 

RECITALS OF THE COMPANY:

 

WHEREAS, the Company has
duly authorized, by shareholders’ meeting dated January 22, 2003, the
creation and issue of up to U.S.$300,000,000, or its equivalent in another
currency or composite currency, in negotiable obligations to be issued in
accordance with the provisions of the Negotiable Obligations Law (as defined
herein) in one or more series to be approved by the CNV (as defined herein)
(the “Public Debt Securities” and each, a “Public Debt Security”),
each series in such minimum amount, if any, as may be set forth from time to
time;

 

WHEREAS, from time to
time the Company may duly authorize, by shareholders’ meeting, the creation and
issue of negotiable obligations to be issued in accordance with the provisions
of the Negotiable Obligations Law in one or more series but not approved by the
CNV (the “Private Notes” and each, a “Private Note”) (together
with the Public Debt Securities, the “Debt Securities” and each, a “Debt
Security”);

 

WHEREAS, the Company is
duly authorized to execute and deliver this Indenture in order to provide for
the creation and issuance of up to U.S.$300,000,000 of Public Debt Securities
and an unlimited principal amount of Private Notes under this Indenture;

 

WHEREAS, as of                       , the Company had a
total share capital issued and authorized of Pesos        and the Company’s net worth was
Pesos         ;

 

WHEREAS, the corporate
purpose of the Company consists of the provision of pay television services and
related activities; and

 

WHEREAS, all necessary
actions have been taken to ensure that the Debt Securities, when executed by
the Company and authenticated and delivered by the Trustee hereunder and duly
issued by the Company, will be the valid obligations of the Company and to make
this Indenture a valid Indenture and agreement of the Company, in accordance
with its terms.

 

RECITALS OF THE TRUSTEE:

 

WHEREAS, the Trustee has
agreed to act as Trustee, Co-Registrar and Principal Paying Agent under this
Indenture on the following terms and conditions;

 

 

NOW, THEREFORE, THIS
INDENTURE WITNESSETH that, for and in consideration of the premises and the
purchase of the Debt Securities by the Holders thereof, it is mutually
covenanted and agreed, for the equal and proportionate benefit of all Holders
from time to time of the Debt Securities, as follows:

 

ARTICLE ONE

 

DEFINITIONS

 

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

 

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

 

(2)                                  all
other terms used herein which are defined in the Trust Indenture Act, either
directly or by reference therein, have the meanings assigned to them therein;

 

(3)                                  all
accounting terms not otherwise defined herein have the meanings assigned to
them in accordance with GAAP (whether or not such is indicated herein);

 

(4)                                  the
words “herein”, “hereof” and “hereunder” and other words of similar import
refer to this Indenture as a whole and not to any particular Article, Section or
other subdivision;

 

(5)                                  the
word “or” is not exclusive;

 

(6)                                  provisions
apply to successive events and transactions; and

 

(7)                                  “including”
means including without limitation.

 

“Acceleration Notice” has the
meaning set forth in Section 6.2.

 

“Acquired Indebtedness”  means Indebtedness of a Person existing at
the time such Person became or was designated a Subsidiary of the Company and
not Incurred in connection with, or in contemplation of, such Person becoming a
Subsidiary of the Company.

 

“Additional Amounts” has the meaning
set forth in Section 3.1(g).

 

“Affiliate” means, as applied to any Person,
any other Person directly or indirectly controlling, controlled by, or under
direct or indirect common control with, such Person.

 

“Annualized Pro Forma
Consolidated Operating Cash Flow” means Consolidated Operating Cash Flow
for the latest fiscal quarter for which consolidated financial statements of
the Company are available multiplied by four. 
For purposes of calculating “Consolidated Operating Cash Flow”
for any fiscal quarter for purposes of this definition, (i) any Subsidiary
of the Company on the Transaction Date shall be deemed to have been a
Subsidiary at all times

 

2

 

during
such fiscal quarter and (ii) any Subsidiary of the Company that is not a
Subsidiary on the Transaction Date shall be deemed not to have been a
Subsidiary at any time during such fiscal quarter.  In addition to and without limitation of the
foregoing, for purposes of this definition, “Consolidated Operating Cash
Flow” shall be calculated after giving effect on a pro forma basis for the
applicable fiscal quarter to, without duplication, any Asset Sale or Asset
Acquisition (including, without limitation, any Asset Acquisition giving rise
to the need to make such calculation as a result of the Company or one of its
Subsidiaries (including any Person who becomes a Subsidiary as a result of the
Asset Acquisition) Incurring Acquired Indebtedness) occurring during the period
commencing on the first day of such fiscal quarter to and including the
Transaction Date (the “Reference Period”),
as if such Asset Sale or Asset Acquisition occurred on the first day of the
Reference Period.

 

“Argentina” means the Republic of Argentina.

 

“Argentine Government” means the
government of Argentina.

 

“Asset Acquisition” means (i) an
Investment or capital contribution (by means of transfers of cash or other
property to others or payments for property or services for the account or use
of others, or otherwise) by the Company or any of its Subsidiaries in any other
Person, or any acquisition or purchase of Capital Stock of another Person by
the Company or any of its Subsidiaries, in either case pursuant to which such
Person shall become a Subsidiary of the Company or shall be merged with or into
or consolidated with the Company or any of its Subsidiaries or (ii) an
acquisition by the Company or any of its Subsidiaries of the property and
assets of any Person other than the Company or any of its Subsidiaries which
constitute substantially all of a division, operating unit or line of business
of such Person or which is otherwise outside the ordinary course of business.

 

“Asset Sale” means, with respect to any
series of Debt Securities, any direct or indirect sale, transfer, conveyance or
lease (which has the effect of a disposition and is not for security purposes)
or other disposition (including by way of sale-leaseback transactions) in one
transaction or a series of related transactions by the Company or any
Subsidiary of the Company to any Person other than the Company or any
Subsidiary of the Company of (i) all or any of the Capital Stock of any
Subsidiary of the Company (other than directors’ qualifying shares or shares
owned by a Person, to the extent mandated by applicable law), (ii) any
material license or other authorization of the Company or any Subsidiary of the
Company pertaining to a Cable/Telecommunications Business, (iii) all or
substantially all of the property and assets of an operating unit or business
of the Company or any Subsidiary or (iv) any other property and assets of
the Company or any Subsidiary and, in each case, that is not governed by Section 4.17
hereof; provided, however that the term “Asset
Sale” shall in no case include any sale, transfer, conveyance, lease or
other disposition in one transaction or a series of related transactions (i) of
property or equipment that has become worn out, obsolete or damaged or
otherwise unsuitable for use in connection with the business of the Company or
any Subsidiary of the Company, as the case may be, (ii) involving assets
with a Fair Market Value not in excess of U.S.$500,000, (iii) of inventory
in the ordinary course of business, or (iv) involving the sale or other disposition
of cash or Cash Equivalents.

 

3

 

“Authenticating Agent” means any
Person authorized by the Trustee to act on behalf of the Trustee to
authenticate the Debt Securities.

 

“Authorized Newspaper” means a
newspaper, in the English language or in an official language of the country of
publication, customarily published on each Business Day, whether or not
published on Saturdays, Sundays or holidays, and of general circulation in each
place in connection with which the term is used or in the financial community
of each such place.  Where successive
publications are required to be made in Authorized Newspapers, the successive
publications may be made in the same or in different newspapers in the same
city meeting the foregoing requirements and in each case on any Business Day.

 

“Authorized Officer” means a member
of the Supervisory Board of the Company and a Director of the Company along
with such other officers of the Company as may be duly authorized to take
actions under this Indenture and the Debt Securities.

 

“Average Life” means, at any date of
determination with respect to any Indebtedness, the quotient obtained by
dividing (i) the sum of the products of (a) the number of years from
such date of determination to the dates of each successive scheduled principal
payment, redemption or similar payment with respect to such Indebtedness and (b) the
amount of such principal payment by (ii) the sum of all such principal
payments.

 

“Bearer Debt Security” means any
Debt Security except a Registered Debt Security.

 

“Board of Directors” means the board
of directors of the Company.

 

“Board Resolution” means a copy of a
resolution certified by a director of the Company to have been duly adopted by
the Board of Directors and to be in full force and effect on the date of such
certification, and delivered to the Trustee.

 

“Buenos Aires”  means the City of Buenos Aires.

 

“Business Day” means any day (other than a
Saturday or Sunday) on which DTC, Euroclear or Clearstream, Luxembourg and
banks in The City of New York and Buenos Aires are open for business.

 

“Cable/Telecommunications
Business” means any business operating a cable and/or telecommunications
services and/or communications services or programming business located in
South America, including, without limitation, any business conducted by the
Company on the Issue Date of the initial series of Debt Securities issued
hereunder.

 

“Capital Stock” means, with respect to any
Person, any and all shares, interests, participations, rights in or other
equivalents (however designated, whether voting or non-voting) in equity of
such Person, whether outstanding at the Issue Date of the initial series of
Debt Securities issued hereunder or issued thereafter, including, without limitation,
all Common Stock and Disqualified Stock, and any and all rights, warrants or
options exchangeable for or convertible into any thereof.

 

4

 

“Capitalized Lease” means, as applied
to any Person, any lease or license of, or other agreement conveying the right
to use, any property (whether real, personal or mixed, movable or immovable) of
which the present value of the obligations of such Person to pay rent or other
amounts is required, in conformity with GAAP, to be classified and accounted
for as a financial lease obligation; and “Capitalized Lease Obligation”
is defined to mean the capitalized present value of the obligations to pay rent
or other amounts under such lease or other agreement, determined in accordance
with GAAP.

 

“Cash Equivalents” means (i) any
evidence of Indebtedness with a maturity of 365 days or less issued or directly
and fully guaranteed or insured by Argentina or the United States or any agency
or instrumentality thereof (provided that
the full faith and credit of Argentina or the United States, as the case may
be, is pledged in support thereof or such Indebtedness constitutes a general
obligation of such country); (ii) deposits, certificates of deposit or
acceptances with a maturity of 180 days or less of, or Indebtedness with a
maturity of 365 days or less directly and fully secured by an irrevocable
standby letter of credit issued or confirmed by, (x) any financial
institution that is a member of the Federal Reserve System, and has combined
capital and surplus and undivided profits (or any similar capital concept) of
not less than U.S.$500 million or (y) Credit Suisse First Boston Corporation,
Fleet Bank, Banco Francés - BBVA, Banco Río de la Plata S.A., Banco de Galicia
y Buenos Aires S.A., Citibank, N.A. and any of the five largest banks (based on
assets as of the last December 31) organized under the laws of Argentina, provided that such bank is not under intervention,
receivership or any similar arrangement at the time of such deposit or the
acquisition of such certificate of deposit or acceptance; (iii) commercial
paper with a maturity of 180 days or less issued by a corporation (other than
an Affiliate of the Company) organized under the laws of Argentina or any part
thereof or the United States or any state thereof or the District of Columbia
and rated at least “A-1” by Standard & Poor’s Corporation or “P-1” by
Moody’s Investors Service; (iv) repurchase agreements and reverse
repurchase agreements relating to marketable direct obligations issued or
unconditionally guaranteed by the government of Argentina or the United States
government (in the case of any Argentine or United States government
obligations), in each case maturing within one year from the date of
acquisition and (v) investments in money market funds all of the assets of
which consist of securities of the type described in the foregoing
clauses (i) through (iii).

 

“Certificated Debt Security” means
any Debt Security (other than a Global Debt Security) in fully registered
definitive form.

 

“Clearstream, Luxembourg” means
Clearstream Banking, société anonyme (formerly known as Cedelbank), and its
successors.

 

“CNV” means the Argentine Comisión
Nacional de Valores.

 

“Co-Registrar” means Law Debenture Trust
Company of New York, until a successor Co-Registrar shall have become such
pursuant to the applicable provisions of this Indenture, and, thereafter, “Co-Registrar”
shall mean such successor Co-Registrar.

 

“Commission” means the U.S. Securities and
Exchange Commission, as from time to time constituted, created under the
Exchange Act, or, if at any time after the execution of

 

5

 

this instrument such
Commission is not existing and performing the duties now assigned to it under
the Trust Indenture Act, then the body performing such duties at such time.

 

“Common Depositary” means, with
respect to Global Debt Securities, the Person acting as Common Depositary for
the benefit of Euroclear and Clearstream, Luxembourg.

 

“Common Stock” means with respect to any
Person, any and all shares, interests or other participations in, and other
equivalents (however designated and whether voting or non-voting) of such
Person’s common stock or ordinary shares, whether or not outstanding at the Issue
Date of the initial series of Debt Securities issued hereunder or issued
thereafter, and includes, without limitation, all series and classes of such
common stock or ordinary shares.

 

“Company” means the Person named as the “Company”
in the first paragraph of this instrument until a successor Person shall have
become such pursuant to the applicable provisions of this Indenture and
thereafter “Company” shall mean such successor Person.

 

“Company Request” or “Company
Order” means a written request or order signed in the name of the Company
by any of its directors or alternate directors or its chief financial officer
and a director or alternate director and delivered to the Trustee.

 

“Consolidated Income Tax
Expense” means, for any period, the provision for local, foreign and all
other income taxes of the Company and its Subsidiaries for such period as
determined in accordance with GAAP.

 

“Consolidated Interest Expense”
means, for any period, the aggregate amount of interest expense in respect of
Indebtedness (including, without limitation, amortization of original issue
discount on any indebtedness and the interest portion of any deferred payment
obligation, all commissions, discounts and other fees and charges owed with
respect to letters of credit and bankers’ acceptance financing and the net
costs associated with Interest Rate Protection Obligations) and all but the
principal component of rent or other amounts in respect of Capitalized Lease
Obligations paid, accrued or scheduled to be paid or to be accrued by the
Company and its Subsidiaries during such period, but excluding, any premiums,
fees and expenses (and any amortization thereof) payable in connection with the
issuance of any series of Debt Securities or other Indebtedness, all as
determined on a consolidated basis in conformity with GAAP.

 

“Consolidated Net Income” means,
for any period, the consolidated net income (or loss) of the Company and its
Subsidiaries for such period determined in accordance with GAAP, adjusted, to
the extent included in calculating such consolidated net income, by excluding,
without duplication, (i) all extraordinary gains or losses of such Person
for such period, (ii) income of the Company and its Subsidiaries derived
from or in respect of all Investments in Persons other than any of its
Subsidiaries, (iii) the portion of net income (or loss) of such Person
allocable to minority interests in unconsolidated Persons for such period,
except to the extent actually received by the Company or any of its
Subsidiaries, (iv) net income (or loss) of any other Person combined with
such Person on a “pooling of interests” basis attributable to any period prior
to the date of combination, (v) any gain or loss, net of taxes, realized
by such Person upon the termination of any employee pension benefit plan during
such

 

6

 

period, (vi) gains
(but not losses) in respect of any Asset Sales during such period and (vii) the
net income of any Subsidiary of the Company for such period to the extent that
the declaration of dividends or similar distributions by such Subsidiary of
that income is not at the time permitted, directly or indirectly, by operation
of the terms of its constitutional documents or any agreement, instrument,
judgment, decree, order, statute, rule or governmental regulations
applicable to that Subsidiary or its stockholders.

 

“Consolidated Net Worth” means,
with respect to any Person as of any date, the total of the amounts shown on
the balance sheet of such Person and its consolidated subsidiaries, determined
on a consolidated basis in accordance with GAAP, as of the end of the most
recent fiscal quarter for which consolidated financial statements for such
Person and its consolidated subsidiaries have been prepared prior to the taking
of any action for the purpose of which the determination is being made, as (i) the
par or stated value of all outstanding Capital Stock of such Person plus (ii) paid-in
capital or capital surplus relating to such Capital Stock plus (iii) any
retained earnings or earned surplus less (iv)(A) any accumulated deficit
and (B) any amounts attributable to Disqualified Stock of such Person not
held by such Person or its Subsidiaries.

 

“Consolidated Operating Cash
Flow” means, with respect to any period, the Consolidated Net Income for
such period increased by the sum of (i) the Consolidated Income Tax
Expense of the Company and its Subsidiaries accrued according to GAAP for such
period (only to the extent the corresponding income was included in computing
Consolidated Net Income for such period and other than taxes attributable to
extraordinary, unusual or nonrecurring gains or losses); (ii) Consolidated
Interest Expense of the Company and its Subsidiaries for such period; (iii) consolidated
depreciation of the Company and its Subsidiaries for such period; (iv) consolidated
amortization of the Company and its Subsidiaries for such period, including,
without limitation, amortization of capitalized debt issuance costs for such
period; and (v) all other non-cash items of the Company and its
Subsidiaries reducing Consolidated Net Income (excluding any non-cash items to
the extent they represent an accrual of, or a reserve for, cash disbursements
for any subsequent period); and reduced by (vi) all non-cash items of the
Company and its Subsidiaries increasing Consolidated Net Income for such
period; in each case determined on a consolidated basis in accordance with
GAAP.

 

“control” (including, with correlative
meanings, the terms “controlling,” “controlled by” and “under
common control with”), as applied to any Person, means the possession by
another Person (whether directly or indirectly and whether by the ownership of
share capital, the possession of voting power, contract or otherwise) of the
power to appoint and/or remove the majority of the members of the board of
directors or other governing body of such Person or otherwise to direct or
cause the direction of the affairs and policies of such Person.

 

“Corporate Trust Office” means the
office of the Trustee located at 767 Third Avenue, 31st Floor, New
York, New York 10017.

 

“Corporation” means a sociedad
anónima, sociedad de responsibilidad limitada, corporation,
association, company or business trust.

 

“coupon” means any interest coupon appertaining
to a Bearer Debt Security.

 

7

 

“Currency Agreement” means any
foreign exchange contract, currency swap agreement or other similar agreement
or arrangement designed to protect the Company or any Subsidiary against
fluctuations in currency values.

 

“Debt Security” and “Debt
Securities” have the meaning set forth in the second recital of this
Indenture, or, as the case may be, Debt Securities that have been authenticated
and delivered under this Indenture.

 

“Debt Security Register” means the
books for the exchange, registration and registration of transfer of Registered
Debt Securities.

 

“Default” means any event that is, or after
notice or passage of time or both would be, an Event of Default.

 

“Defaulted Interest” has the meaning
set forth in section 3.7(h).

 

“Depositary” means, when used with respect
to the Debt Securities issuable or issued in whole or in part in the form of
one or more Global Debt Securities, DTC, its nominees, and their respective
successors, or such other depositary as may be designated with respect thereto.

 

“Disqualified Stock” means, with
respect to any Person, any Capital Stock of such Person 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, matures or is mandatorily
redeemable, pursuant to a sinking fund obligation or otherwise, or is
exchangeable for Indebtedness, or is redeemable at the option of the holder
thereof, in whole or in part, on or prior to the final maturity date of the
relevant series of Debt Securities.

 

“DTC” means The
Depository Trust Company and its successors.

 

“Euroclear” means Euroclear Bank S.A./N.V.,
as operator of the Euroclear System, and its successors.

 

“Event of Default” means any of the
events specified in Section 6.1.

 

“Exchange Act” means the U.S. Securities
Exchange Act of 1934, as amended.

 

“Exchange Date” means, with respect to any
Bearer Debt Security of a series, the date which is the 40th day after the
later of the commencement of the offering of such series of Debt Securities to
purchasers thereof and the Issue Date for such series.

 

“Exchange Rate Agent” means an
exchange rate agent designated by the Company. 

 

“Fair Market Value” means, with respect
to any asset or property, the price that could be negotiated in an arms-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.  Unless otherwise specified
in this Indenture, Fair Market Value shall be determined

 

8

 

by the chief financial
officer of the Company and shall be evidenced by an Officers’ Certificate
delivered to the Trustee at its request.

 

“GAAP” means generally accepted accounting
principles in effect in Argentina as of the date of determination.

 

“Global Bearer Debt Security” means
a Temporary Global Bearer Debt Security or a Permanent Global Bearer Debt
Security.

 

“Global Debt Security” means a Debt
Security in definitive global form evidencing all or part of a series of Debt
Securities that is deposited with DTC or another Depositary, or a nominee
thereof, for credit to the respective accounts of the beneficial owners of the
Debt Securities represented thereby.

 

“Global Registered Debt
Securities” has the meaning set forth in Section 3.6(c).

 

“Governmental Agency” means any
public legal entity or public agency of Argentina or the United States, whether
created by any competent authority, federal, state or local government, or any
other legal entity now existing or hereafter created, or now or hereafter owned
or controlled, directly or indirectly, by any public legal entity or public
agency of Argentina or the United States.

 

“Government Obligations” means a
series of securities that are (x) direct obligations of the government
that issued the specified currency in which the Debt Securities are payable or
(y) obligations of a Person controlled or supervised by and acting as an
agency or instrumentality of the government that issued the specified currency
in which the Debt Securities are payable, the payment of which is
unconditionally guaranteed by such government, which, in either case, are full
faith and credit obligations of such government payable in the specified
currency and are not callable or redeemable at the option of the issuer
thereof, and shall also include a depositary receipt issued by a bank (as
defined in Section 3(a)(2) of the Securities Act) as custodian with
respect to any such Government Obligation or a specific payment of principal of
or interest on any such Government Obligation held by such custodian for the
account of the holder of such depositary receipt, provided
that (except as required by law) such custodian is not authorized to make any
deduction from the amount payable to the holder of such depositary receipt from
any amount received by the custodian in respect of the Government Obligation or
the specific payment of principal of or interest on the Government Obligation
evidenced by such depositary receipt.

 

“Guarantee” means any obligation, contingent
or otherwise, of any Person directly or indirectly guaranteeing any
Indebtedness or other obligation of any other Person and, without limiting the
generality of the foregoing, any obligation, direct or indirect, contingent or
otherwise, of such Person (i) to purchase or pay (or advance or supply
funds for the purchase or payment of) such Indebtedness or other obligation of
such other Person (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 purposes of assuring in any other manner the obligee of such Indebtedness
or other obligation of the payment thereof or to protect such obligee against
loss in respect

 

9

 

thereof (in whole or in
part); provided 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.

 

“Guaranteed Indebtedness” shall
have the meaning set forth in Section 4.9.

 

“Guarantor” means any Person obligated under
a Guarantee.

 

“Holder”, “Holder of
Debt Securities” or other similar terms means, in the case of a Registered
Debt Security, a Person in whose name a Debt Security is registered in the Debt
Security Register and, in the case of a Bearer Debt Security, means the bearer
thereof and, when used with respect to any coupon, shall mean the bearer
thereof.

 

“Incur” means, with respect to any Indebtedness,
to incur, create, issue, assume, Guarantee or otherwise, contingently or
otherwise, become liable, directly or indirectly, for or with respect to, or
become responsible for, the payment of such Indebtedness, including an
Incurrence of Acquired Indebtedness by reason of the acquisition of more than
50% of the Capital Stock of any Person; provided that
neither the accrual of interest nor the accretion of original issue discount
shall be considered an Incurrence of Indebtedness.  The term “Incurrence” used as a noun has a
corresponding meaning.

 

“Indebtedness” means, with respect to any
Person at any date of determination (without duplication), (i) any
liability, contingent or otherwise, of such Person for borrowed money, (ii) all
obligations of such Person evidenced by bonds, debentures, notes or other
similar instruments, (iii) all obligations of such Person in respect of
letters of credit or other similar instruments (including reimbursement
obligations with respect thereto), (iv) all obligations of such Person to
pay the deferred and unpaid purchase price of property or services, including
purchase money obligations, which purchase price is due more than 180 days
after the date of placing such property in service or taking delivery and title
thereto or the completion of such services, except Trade Payables, (v) all
obligations of such Person as lessee under Capitalized Leases, (vi) all
Indebtedness of other Persons secured by a Lien on any asset of such Person,
whether or not such Indebtedness is assumed by or is otherwise the legal
liability of such Person; provided that
the amount of such Indebtedness shall be the lesser of (A) the Fair Market
Value of such asset at such date of determination and (B) the amount of
such Indebtedness, (vii) all Indebtedness of other Persons Guaranteed by
such Person or which is otherwise the legal liability of such Person, to the
extent such Indebtedness is Guaranteed by or is otherwise the legal liability
of such Person, (viii) to the extent not otherwise included in this
definition, obligations under Currency Agreements and Interest Rate Protection
Obligations, (ix) any and all deferrals, renewals, extensions and
refundings of, or amendments of or supplements to, any liability or obligation
of the kind described in this definition, and (x) Disqualified Stock.  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, with respect to contingent obligations, the
maximum liability upon the occurrence of the contingency giving rise to the
obligation, provided that the amount outstanding at
any time of any Indebtedness issued with original issue discount is the face
amount of such Indebtedness less the remaining unamortized portion of the
original issue discount of such Indebtedness at such time as determined in
conformity with GAAP.

 

10

 

“Indenture” means this instrument as
originally executed (including all exhibits and schedules hereto) or as it may
from time to time be supplemented or amended by one or more indentures
supplemental hereto entered into pursuant to the applicable provisions hereof,
and such term shall include, unless the context otherwise requires, the forms
and terms of any series of Debt Securities established as contemplated
hereunder.

 

“Independent Financial Advisor”
means an investment banking firm of international standing (i) which does
not, and whose shareholders, members, directors, officers or Affiliates do not,
have a material direct or indirect financial interest in the Company or one or
more Significant Subsidiaries, and (ii) which is otherwise independent and
qualified to perform the task for which it is to be engaged.

 

“Institutional Accredited
Investor” means institutional “accredited investors” (as defined in Rule 501(a)(1),
(2), (3) or (7) under the Securities Act) who are not “qualified
institutional buyers” (as defined in Rule 144A under the Securities Act).

 

“Interest Payment Date” means, with
respect to any series of Debt Securities, the Stated Maturity of an installment
of interest on such series of Debt Securities.

 

“Interest Rate Protection
Obligations” means the obligations of any Person pursuant to any
arrangement with any other Person whereby, directly or indirectly, such Person
is entitled to receive from time to time periodic payments calculated by
applying either a floating or a fixed rate of interest on a stated notional
amount and shall include, without limitation, interest rate swaps, caps,
floors, collars, forward interest rate agreements and similar agreements.

 

“Investment” means, with respect to any
Person, any direct or indirect advance, loan, account receivable (other than an
account receivable arising in the ordinary course of business), or other
extension of credit (including, without limitation, by means of any Guarantee
or similar arrangement) or any capital contribution to (by means of transfers
of property to others, payments for property or services for the account or use
of others, or otherwise), or any purchase or ownership of any stocks, bonds,
notes, debentures or other securities of, any other Person.  Notwithstanding the foregoing, in no event
shall any issuance of Capital Stock (other than Disqualified Stock) of the
Company in exchange for Capital Stock, property or assets of another Person
constitute an Investment by the Company in such other Person.

 

“Issue Date” means, with respect to any
series of Debt Securities, the original date of issuance and purchase of such
series of Debt Securities as specified in or pursuant to the relevant Board
Resolution, Officers’ Certificate or indenture supplemental hereto with respect
thereto.

 

“Lien” means any mortgage, charge, pledge,
security interest, encumbrance, lien (statutory or other), hypothecation,
assignment for security, claim, or preference or priority or other encumbrance
of any kind upon or with respect to any property (including, without
limitation, any conditional sale or other title retention agreement or lease in
the nature thereof, any sale with recourse against the seller or any Affiliate
of the seller, or any agreement to give any security interest).

 

11

 

“Material Adverse Effect” means
any material adverse effect whatsoever on the property, financial condition,
business or operations of the Company and its Subsidiaries, taken as a whole.

 

“Maturity”, when used with respect to any Debt
Security, means the date on which the principal of such Debt Security becomes
due and payable as therein provided, whether at the Stated Maturity or by
declaration of acceleration, call for redemption or otherwise, as specified in
or pursuant to the relevant Board Resolution, the Officers’ Certificate or the
indenture supplemental hereto with respect thereto.

 

“Member Organization” means any
members of, or participants in, a Common Depositary.

 

“Negotiable Obligations Law” means
Argentine Law No. 23,576, as amended.

 

“Officer” means the chairman of the Board of
Directors, the chief executive officer, the chief financial officer, the
treasurer, the controller or any member of the Board of Directors of the
Company.

 

“Officers’ Certificate” means a
certificate signed by any two of the chief executive officer, chief operating
officer and chief financial officer of the Company.

 

“Opinion of Counsel” means a written
opinion from legal counsel who is reasonably acceptable to the Trustee, which
may include an individual employed as counsel to the Company or the Trustee.

 

“Outstanding”, when used with respect to
any series of Debt Securities, means, as of the date of determination, all Debt
Securities of such series theretofore authenticated and delivered under this
Indenture, except:

 

(i)                                     Debt
Securities of such series theretofore canceled by the Trustee or delivered to
the Trustee for cancellation;

 

(ii)                                  Debt
Securities of such series, or portions thereof, for whose payment or redemption
money in the necessary amount has been theretofore deposited with the Trustee
or any Paying Agent (other than the Company) in trust or set aside and
segregated in trust by the Company (if the Company shall act as its own Paying
Agent) for the Holders of such Debt Securities; provided
that, if such Debt Securities are to be redeemed, notice of such redemption has
been duly given pursuant to this Indenture or provision therefor satisfactory
to the Trustee has been made;

 

(iii)                               Debt
Securities of such series which have been duly defeased or as to which the
Company has effected covenant defeasance pursuant to Sections 14.2 and/or
14.3 hereof; and

 

(iv)                              Debt
Securities of such series which have been paid pursuant to Section 3.10 or
in exchange for or in lieu of which other Debt Securities of such series have
been authenticated and delivered pursuant to this Indenture, other than any
such Debt Securities in

 

12

 

respect of which there
shall have been presented to the Trustee proof satisfactory to it that such
Debt Securities are held by a good
faith purchaser in whose hands such Debt Securities are valid
obligations of the Company; provided, however,
that in determining whether the Holders of the requisite principal amount of
the Outstanding Debt Securities of a series have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, Debt Securities
of such series owned by the Company or any other obligor upon such Debt
Securities or any Subsidiary or Affiliate of the Company or of such other
obligor shall be disregarded and deemed not to be Outstanding, except that, in
determining whether the Trustee shall be protected in relying upon any such
request, demand, authorization, direction, notice, consent or waiver, only Debt
Securities of such series which a Responsible Officer of the Trustee actually
knows to be so owned shall be so disregarded. 
Debt Securities so owned which have been pledged in good faith may be
regarded as Outstanding if the pledgee establishes to the satisfaction of the
Trustee the pledgee’s right so to act with respect to such Debt Securities and
that the pledgee is not the Company or any other obligor upon such Debt
Securities or any Subsidiary or Affiliate of the Company or of such other
obligor.

 

“pari passu”
means, as applied to the ranking of any Indebtedness of a Person in relation to
other Indebtedness of such person, that each such Indebtedness either (i) is
not subordinate in right of payments to any Indebtedness or (ii) is
subordinate in right of payment to the same Indebtedness as is the other, and
so subordinate to the same extent, and is not subordinate in right of payment
to each other or to any Indebtedness as to which the other is not so
subordinate.

 

“Participant” means, with respect to DTC,
Euroclear or Clearstream, Luxembourg, Persons who have accounts with DTC,
Euroclear or Clearstream, Luxembourg, respectively (and, with respect to DTC,
shall include Euroclear and Clearstream, Luxembourg).

 

“Paying Agent” means initially the Persons
named as Paying Agent in the first paragraph of this Indenture, any successor
thereof, and any Person authorized by the Company to pay the principal of or
interest on any Debt Securities on behalf of the Company, including the
Principal Paying Agent.

 

“Permanent Global Bearer
Debt Security” means a single permanent global Debt Security in definitive
bearer form, without coupons, which is deposited with the Common Depositary for
credit on or after the relevant Exchange Date to the accounts of the beneficial
owners of Bearer Debt Securities of a series at Euroclear or Clearstream,
Luxembourg.

 

“Permitted Indebtedness” means,
with respect to any series of Debt Securities, the following indebtedness (each
of which shall be given independent effect) of the Company:

 

(a)                                  Indebtedness
under such Debt Securities and the Indenture with respect to such Debt
Securities;

 

(b)                                 Indebtedness
of the Company outstanding on the Issue Date;

 

(c)                                  Indebtedness
of the Company owed to and held by any Subsidiary; provided
that an Incurrence of Indebtedness shall be deemed to have occurred upon
(x) any sale or other disposition of any Indebtedness of the Company
referred to in this clause (c) to a Person

 

13

 

other than the Company or
a Subsidiary of the Company, or (y) any sale or other disposition of
Capital Stock of a Subsidiary of the Company which holds Indebtedness of the
Company to any person other than the Company or any other Subsidiary;

 

(d)                                 Interest
Rate Protection Obligations of the Company to the extent relating to
Indebtedness of the Company, as the case may be (which Indebtedness
(x) bears interest at fluctuating interest rates and (y) is otherwise
permitted to be incurred under Section 4.6);

 

(e)                                  Indebtedness
of the Company under Currency Agreements to the extent relating to (i) Indebtedness
of the Company and/or (ii) obligations to purchase assets, properties or
services incurred in the ordinary course of business of the Company; provided that such Currency Agreements do not increase the
Indebtedness or other obligations of the Company and its Subsidiaries
outstanding other than as a result of fluctuations in foreign currency exchange
rates or by reason of fees, indemnities or compensation payable thereunder;

 

(f)                                    Indebtedness
of the Company in respect of performance bonds of or surety or performance
bonds provided by the Company incurred in the ordinary course of business in
connection with the construction or operation of a Cable/Telecommunications
Business; or

 

(g)                                 Indebtedness
of the Company to the extent it represents a replacement, renewal, refinancing,
or extension of outstanding Indebtedness of the Company incurred or outstanding
pursuant to clause (a) or (b) or this clause (g) of this
definition or the proviso to the first sentence of Section 4.6; provided that (A) Indebtedness of the Company may not
be replaced, renewed, refinanced or extended under this clause (g) with
Indebtedness of any Subsidiary of the Company, (B) any such replacement,
renewal, refinancing or extension (x) shall not result in such
Indebtedness having a shorter Average Life as compared with the Indebtedness
being replaced, renewed, refinanced or extended and (y) shall not exceed
the sum of the principal amount (or, if such Indebtedness provides for a lesser
amount to be due and payable upon a declaration or acceleration thereof, an
amount no greater than such lesser amount) of the Indebtedness being replaced,
renewed, refinanced or extended plus the amount of accrued interest thereon and
the amount of any reasonably determined prepayment premium necessary to
accomplish such replacement, renewal, refinancing or extension and such
reasonable fees and expenses incurred in connection therewith, and (C) in
the case of any Indebtedness replacing, renewing, refinancing, or extending
Indebtedness which is pari passu to
such Debt Securities, any such replacing, renewing, refinancing or extending
Indebtedness is made pari passu to
such Debt Securities or subordinated to such Debt Securities, and, in the case
of any Indebtedness replacing, renewing, refinancing, or extending Subordinated
Indebtedness, any such replacing, renewing, refinancing or extending
Indebtedness is subordinated to such Debt Securities to the same extent as the
Indebtedness being replaced, renewed, refinanced or extended.

 

“Permitted Lien” means, with respect to
any series of Debt Securities, (i) Liens existing on the Issue Date; (ii) Liens
(including extensions and renewals thereof) upon real or personal property
acquired after the Issue Date; provided that (a) such
Lien is created solely for the purpose of securing Indebtedness Incurred in
accordance with Section 4.6, (1) to finance the cost (including the
cost of design, development, construction, improvement, installation or
integration) of the item of property or assets subject thereto and such Lien is
created prior to, at

 

14

 

the time of or within six
months after the later of the acquisition, the completion of construction or
the commencement of full operation of such property or (2) to refinance
any Indebtedness previously so secured, (b) the principal amount of the
Indebtedness secured by such Lien does not exceed 100% of such cost and (c) any
such Lien shall not extend to or cover any property or assets other than such
item of property or assets and any improvements on such item; (iii) any
interest or title of a lessor in the property subject to any Capitalized Lease
or operating lease; (iv) Liens on property of, or on shares of stock or
Indebtedness of, any Person existing at the time such Person becomes a
Subsidiary of the Company, or is merged into or consolidated with the Company
or any Subsidiary of the Company; provided that
such Liens were not granted in contemplation of such acquisition, merger or
consolidation and do not extend to or cover any property or assets of the
Company or any Subsidiary of the Company other than the property or assets
acquired; (v) Liens in favor of the Company or any Subsidiary of the
Company; (vi) Liens securing reimbursement obligations with respect to
letters of credit that encumber documents and other property relating to such
letters of credit and the products and proceeds thereof; (vii) Liens
securing Indebtedness of the Company permitted pursuant to clause (g) of
the definition of “Permitted Indebtedness” or clause (c) of the
definition of “Permitted Subsidiary Indebtedness”, provided that
any such Indebtedness being refinanced was previously secured by a Permitted
Lien and any such Lien shall not extend to or cover any property or assets
other than those encumbered by the Lien securing the Indebtedness being
refinanced; and (viii) Liens incurred in the ordinary course of business
securing Indebtedness under Interest Rate Protection Obligations and Currency
Agreements.

 

“Permitted Subsidiary
Indebtedness” means, with respect to any series of Debt Securities, the
following Indebtedness (each of which shall be given independent effect) of a
Subsidiary of the Company:

 

(a)                                  Indebtedness
of any Subsidiary of the Company outstanding on the Issue Date;

 

(b)                                 Indebtedness
of any Subsidiary of the Company owed to and held by the Company or a
Subsidiary of the Company; provided that
an Incurrence of Indebtedness shall be deemed to have occurred upon
(x) any sale or other disposition of any Indebtedness of a Subsidiary of
the Company referred to in this clause (b) to a Person other than the
Company or a Subsidiary of the Company, or (y) any sale or other
disposition of Capital Stock of a Subsidiary of the Company which holds
Indebtedness of another Subsidiary of the Company except to the extent
permitted under clause (v) of Section 4.8 herein; and

 

(c)                                  Indebtedness
of any Subsidiary of the Company to the extent it represents a replacement,
renewal, refinancing, or extension of outstanding Indebtedness of such
Subsidiary incurred or outstanding pursuant to clause (a) or this
clause (c) of this definition; provided that (A) any
such replacement, renewal, refinancing or extension (x) shall not result
in such Indebtedness having a shorter Average Life as compared with the
Indebtedness being replaced, renewed, refinanced or extended and (y) shall
not exceed the sum of the principal amount (or, if such Indebtedness provides
for a lesser amount to be due and payable upon a declaration or acceleration
thereof, an amount no greater than such lesser amount) of the Indebtedness
being replaced, renewed, refinanced or extended plus the amount of accrued
interest thereon and the amount of any reasonably determined prepayment premium
necessary to accomplish such

 

15

 

replacement, renewal,
refinancing or extension and such reasonable fees and expenses incurred in
connection therewith.

 

“Person” means any individual, Corporation,
partnership, joint venture, trust, unincorporated organization or government or
any agency or political subdivision thereof.

 

“Pesos” means pesos
of Argentina.

 

“Predecessor Debt Security” of
any particular Debt Security means every previous Debt Security evidencing all
or a portion of the same debt as that evidenced by such particular Debt
Security; and, for the purposes of this definition, any Debt Security
authenticated and delivered under Section 3.10 in exchange for or in lieu
of a mutilated, destroyed, lost or stolen Debt Security shall be deemed to
evidence the same debt as the mutilated, destroyed, lost or stolen Debt
Security.

 

“Principal Paying Agent” means
initially the Person named as the “Principal Paying Agent” in the first
paragraph of this Indenture, and any successor Principal Paying Agent.

 

“Private Note” and “Private
Notes” have the meaning set forth in the second recital of this Indenture.

 

“Property” means, with respect to any Person,
any asset, revenue or any other property, whether tangible or intangible, real
or personal (including, without limitation, any right to receive income), owned
directly by such Person.

 

“Public Debt Security”
and “Public Debt Securities” have the meaning set forth in the first
recital of this Indenture.

 

“Redemption Date” means, with respect to
any Debt Security, the fixed date, on which such Debt Security is to be
redeemed, in whole or in part, by the Company pursuant to the terms of the Debt
Security.

 

“Redemption Price”, when used with
respect to any Debt Security to be redeemed, means the price at which it is to
be redeemed pursuant to the terms of the Debt Security.

 

“Registered Debt Security” means
any Debt Security registered in the Debt Security Register.

 

“Registrar” means HSBC Bank Argentina S.A.,
until a successor Registrar shall have become such pursuant to the applicable
provisions of this Indenture, and, thereafter “Registrar” shall mean
such successor Registrar.

 

“Regular Record Date” for the
interest payable on any Interest Payment Date on the Debt Securities of or
within any series means the date specified for that purpose as contemplated by Section 3.1.

 

16

 

“Regulation S Global
Registered Debt Security” has the meaning set forth in Section 3.6(b).

 

“Related Person” has the meaning set
forth in Section 4.10.

 

“Responsible Officer” shall mean,
when used with respect to the Trustee, any officer of the Trustee who shall
have direct responsibility for the administration of this Indenture, or to whom
any corporate trust matter is referred because of such person’s knowledge of
and familiarity with the particular subject.

 

“Restricted Certificated
Debt Security” has the meaning set forth in Section 3.6(b).

 

“Restricted Global Registered
Debt Security” has the meaning set forth in Section 3.6(b).

 

“Sale and Leaseback Transaction”
means, with respect to any Person, any direct or indirect arrangement
(excluding, however, any such arrangement between such Person and a
Wholly-Owned Subsidiary of such Person or between one or more Wholly-Owned
Subsidiaries of such Person) pursuant to which property is sold or transferred
by such Person or a Subsidiary of such Person and is thereafter leased back
from the purchaser or transferee thereof by such Person or one of their
Subsidiaries.

 

“Securities Act” means the U.S.
Securities Act of 1933, as amended.

 

“Significant Subsidiary” means,
at any date of determination, any Subsidiary of the Company that, together with
its Subsidiaries, (i) for the most recent fiscal year of the Company,
accounted for more than ten percent (10%) of the consolidated revenues of the
Company and its Subsidiaries or (ii) as of the end of such fiscal year,
was the owner of more than ten percent (10%) of the consolidated assets of the
Company and its Subsidiaries, all as set forth on the most recently available
consolidated financial statements of the Company for such fiscal year.

 

“Special Record Date” has the meaning
set forth in Section 3.7(h)(i).

 

“Stated Maturity” means (i) with
respect to any security, the date specified in such security as the fixed date
on which the final installment of principal of such security is due and payable
and (ii) with respect to any scheduled installment of principal of or
interest on any security, the date specified in such security as the fixed date
on which such installment is due and payable.

 

“Subordinated Indebtedness” means
any Indebtedness of the Company which is expressly subordinated in right of
payment to the Debt Securities, including premium and accrued and unpaid
interest.

 

“Subsidiary” means, with respect to any
Person, any Corporation, association or other business entity (i) of which
outstanding Capital Stock having at least a majority of the votes entitled to
be cast in the election of directors is owned, directly or indirectly, by such

 

17

 

Person and one or more
other Subsidiaries of such Person, or (ii) of which at least a majority of
voting interest is owned, directly or indirectly, by such Person and one or
more other Subsidiaries of such Person.

 

“Subsidiary Guarantee” has the
meaning set forth in Section 4.9.

 

“Supervisory Board” means the
committee of statutory auditors appointed by the shareholders of the Company.

 

“Taxes” has the meaning set forth in Section 3.1(g).

 

“Temporary Global Bearer
Debt Security” means a single temporary global Debt Security in bearer
form, without coupons, which is deposited with the Common Depositary for credit
on the relevant Issue Date to the accounts of the beneficial owners of Bearer
Debt Securities of a series at Euroclear or Clearstream, Luxembourg.

 

“Total Consolidated
Indebtedness” means, at the time of determination, an amount equal to the
aggregate amount of all Indebtedness of the Company and its Subsidiaries
outstanding (without duplication) as of the date of determination.

 

“Trade Payables” means, with respect to
any Person, any accounts payable or any other Indebtedness or monetary
obligation to trade creditors created, assumed or Guaranteed by such Person or
any of its Subsidiaries arising in the ordinary course of business in
connection with the acquisition of goods or services.

 

“Transaction Date” means, with respect
to the Incurrence of any Indebtedness by the Company or any of its
Subsidiaries, the date such Indebtedness is to be Incurred.

 

“Transfer Agent” means any Person
authorized by the Company to effectuate the exchange or transfer of any Debt
Security on behalf of the Company hereunder.

 

“Trust Indenture Act” or “TIA”
means the U.S. Trust Indenture Act of 1939 as in force at the date as of which
this Indenture was executed; provided, however,
that in the event the U.S. Trust Indenture Act of 1939 is amended after such
date, “Trust Indenture Act” or “TIA” means, to the extent
required by any such amendment, the U.S. Trust Indenture Act of 1939 as so
amended.

 

“Trustee” means Law Debenture Trust Company of
New York, until a successor Trustee shall have become such pursuant to the
applicable provisions of this Indenture, and, thereafter “Trustee” shall
mean such successor Trustee.

 

“United States” has the meaning set forth
in Section 3.6(a).

 

“U.S. Dollars”, “United
States Dollars”, “U.S.$” and the symbol “$” each mean dollars
of the United States.

 

“U.S. Global Registered
Debt Security” has the meaning set forth in Section 3.6(b).

 

18

 

 

“Voting Stock” means, with respect to any
Person, Capital Stock of any class or kind ordinarily having the power to vote
for the election of Board of Directors members, managing directors, managers or
other voting members of the governing body of such Person.

 

“Wholly-Owned” is defined to mean, with
respect to any Subsidiary of any Person, such Subsidiary if all the outstanding
Capital Stock in such Subsidiary (other than any directors’ qualifying shares
or shares held by a Person, to the extent mandated by applicable law) is owned
by such Person, or one or more Wholly-Owned Subsidiaries of such Person.

 

ARTICLE TWO

DEBT SECURITY FORMS

 

SECTION 2.1  Forms
Generally.  Debt Securities and the
Trustee’s certificates of authentication thereon shall be in substantially the
forms set forth in Exhibit A and Exhibit B hereto, respectively,
except as otherwise established by or pursuant to a Board Resolution, an
Officers’ Certificate or in one or more indentures supplemental hereto, in each
case with such appropriate insertions, omissions, substitutions and other
variations as are required or permitted by this Indenture, and may have such
letters, numbers or other marks of identification and such legends or
endorsements placed thereon, not inconsistent with this Indenture, as may be
required to comply with any applicable law or rule or regulation, this
Indenture, any rule of any securities exchange on which the Debt Securities may
be listed, or of any Governmental Agency or any depositary thereof, and subject
to the prior approval of the CNV where applicable, or as may, consistently
herewith, be determined by the officers of the Company executing such Debt
Securities, as evidenced by their execution of the Debt Securities.  If the forms of Debt Securities of any series
are established by action taken pursuant to a Board Resolution, a copy of an
appropriate record of such action shall be certified by the secretary of the
Board of Directors of the Company and delivered to the Trustee at or prior to
the delivery of the Company Order contemplated by Section 3.2 for the
authentication and delivery of such Debt Securities.  Any portion of the text of any Debt Security
may be set forth on the reverse thereof, with an appropriate reference thereto
on the face of the Debt Security.

 

The Certificated Debt Securities and any coupons shall
be typewritten, printed, lithographed or engraved or produced by any
combination of these methods on steel engraved borders or may be produced in
any other manner permitted by any applicable law or rule or regulation, this
Indenture, any rule of any securities exchange on which the Debt Securities may
be listed, or of any Governmental Agency or any depositary thereof, and subject
to the prior approval of the CNV where applicable, or as may, consistently
herewith, be determined by the officers of the Company executing such Debt
Securities, as evidenced by their execution of the Debt Securities.

 

The Company agrees to cause the Public Debt Securities
to comply with Article 7 of the Negotiable Obligations Law.

 

Pursuant to Argentine Law No. 24,587, effective
November 22, 1995, and Decree No. 259/96, Argentine companies are no
longer allowed to issue debt securities in bearer form or

 

19

 

in registered endorsable
form, except if the same are authorized by the CNV to be publicly offered in
Argentina and are represented by global or individual certificates, registered
or deposited with Argentine or non-Argentine common depositary systems
authorized by the CNV.  By General
Resolution No. 283/96 of the CNV, as amended by General Resolution No.
290/97, Euroclear, Clearstream, Luxembourg, DTC and the Argentine Caja de
Valores S.A. have been authorized as such common depositary systems.  Accordingly, as long as the provisions of
such law, decree and regulations are applicable, the Company will only issue
Debt Securities under this Indenture in a form which complies with the same.

 

SECTION 2.2  Denominations.  All Debt Securities shall be issuable in such
denominations as shall be specified pursuant to Section 3.1.  With respect to Debt Securities of any series
denominated in Dollars, in the absence of any such provisions, the Registered
Debt Securities of such series, other than Registered Debt Securities issued in
global form, shall be issuable in denominations of U.S.$1,000 and any integral
multiple thereof and the Bearer Debt Securities of such series, other than the
Bearer Debt Securities issued in global form (which may be of any denomination
which is an integral multiple of U.S.$1,000), shall be issuable in a
denomination of U.S.$5,000; provided, however,
that Restricted Certificated Debt Securities originally purchased by or
transferred to Institutional Accredited Investors that are not “qualified
institutional buyers” (as defined under Rule 144A under the Securities
Act) other than in connection with a registered exchange or an effective shelf
registration statement shall be subject to minimum denominations of
U.S.$200,000 or an integral denomination of U.S.$1,000 in excess thereof.

 

ARTICLE THREE

 

THE DEBT SECURITIES

 

SECTION 3.1  Aggregate Principal Amount; Title and
Terms.  (a)  The Public
Debt Securities will constitute negotiable obligations (within the meaning of
the Negotiable Obligations Law) and each series thereof will be issued upon
approval by the CNV.  The Private Notes
will constitute negotiable obligations within the meaning of the Negotiable
Obligations Law but will not be approved by the CNV.

 

(b)           The
aggregate principal amount of Debt Securities that may be authenticated and
delivered under this Indenture is unlimited; provided,
however, that except for Public Debt Securities authenticated and
delivered upon registration of transfer of, or in exchange for, or in lieu of
other Public Debt Securities pursuant to Section 3.9, 3.10 or 9.6 hereof, the
maximum aggregate principal amount of Public Debt Securities that may be
authenticated and delivered at any time hereunder is U.S.$300,000,000 or its
equivalent in other currencies or composite currency.  The equivalent in Dollars of a currency or
composite currency in which a Debt Security is issued shall be determined by
the Company at the time of issuance of such Debt Security, and shall not be
affected by subsequent changes in exchange rates.

 

(c)           The
Indebtedness evidenced by the Debt Securities will constitute the direct,
unsecured and unconditional unsubordinated Indebtedness of the Company and will
rank pari passu in right of payment without
any preference among themselves.  The
payment

 

20

 

obligations of the
Company under the Debt Securities will at all times rank at least equally in
priority of payment with all other present and future unsecured and
unsubordinated Indebtedness of the Company and senior in priority of payment
with all other present and future Subordinated Indebtedness of the Company from
time to time outstanding.

 

(d)           The
Debt Securities may be issued in one or more series.  Prior to the issuance of Debt Securities of
any series, there shall be (i) established in one or more Board
Resolutions or pursuant to authority granted by one or more Board Resolutions,
(ii) subject to Section 3.2, set forth in, or determined in the
manner provided in, an Officers’ Certificate, or (iii) if the Debt
Securities to be issued are of a series not theretofore created, established in
one or more indentures supplemental hereto, any or all of the following, as
applicable (each of which, if so provided, may be determined from time to time
by the Company with respect to unissued Debt Securities of the series and set
forth in such Debt Securities of the series when issued from time to time):

 

(i)            the
form, if other than as determined pursuant to Section 2.1 hereof, and
title of the Debt Securities of the series (which shall distinguish the Debt
Securities of the series from all other series of Debt Securities);

 

(ii)           the
coin or currency (including composite currency) in which the Debt Securities of
any series shall be denominated and payable, and any limit upon the aggregate
principal amount of the Debt Securities of the series that may be authenticated
and delivered under this Indenture (except for Debt Securities authenticated
and delivered upon registration of transfer of, or in exchange for, or in lieu
of, other Debt Securities of the series pursuant to Section 3.5, 3.9 or
3.10);

 

(iii)          the
date or dates, or the method by which such date or dates will be determined or
extended, on which the principal of the Debt Securities of the series is
payable:

 

(iv)          the
rate or rates (which may be fixed or variable) at which the Debt Securities of
the series shall bear interest, if any, or the method by which such rate or
rates shall be determined, the date or dates from which such interest shall
accrue, or the method by which such date or dates shall be determined, the
Interest Payment Dates on which such interest shall be payable and the Regular
Record Date, if any, for the interest payable on any Registered Debt Security
on any Interest Payment Date, or the method by which such date or dates shall
be determined, and the basis upon which interest shall be calculated if other
than as determined in Section 3.8 hereof;

 

(v)           the
place or places, if any, other than the location specified in Section 3.7,
where the principal of (and premium, if any, on) and any interest on Debt
Securities of the series shall be payable or the method of such payment, if by
wire transfer, mail or other means (other than as specified in
Section 3.7), any Registered Debt Securities of the series may be
surrendered for registration of transfer, Debt Securities of the series may be
surrendered for conversion or exchange and, if different than the location
specified in Section 12.4, the place or places where notices or demands to
or upon the Company in respect of the Debt Securities of the series and this
Indenture may be served;

 

21

 

(vi)          the
period or periods within which, the price or prices at which, the currency in
which, and other terms and conditions upon which Debt Securities of the series
may be redeemed, in whole or in part, at the option of the Company, if the
Company is to have that option, pursuant to any sinking fund or otherwise;

 

(vii)         the
right, if any, of the Company to redeem the Debt Securities of any series and
the obligation, if any, of the Company to redeem, repurchase or repay the Debt
Securities of any series at the option of the Holder thereof and the price or
prices at which, the period or periods within which and other terms and conditions
upon which the Debt Securities of any series may or shall be redeemed,
repurchased or repaid, in whole or in part, pursuant to such right or
obligation, if other than as contemplated herein;

 

(viii)        if
applicable, whether the Debt Securities of the series will become convertible
into or exchangeable for other of the Company’s securities, and if so, the
terms of conversion or exchange;

 

(ix)           the
denominations in which any Debt Securities of the series shall be issuable;

 

(x)            the
identity of the Trustee for such Debt Securities and, if other than the
Trustee, the identity of each Debt Security Registrar and/or Paying Agent, any
qualifications of the Trustee or any co-trustee with respect to such Debt
Securities in addition to the qualifications otherwise specified in this
Indenture and any obligations or duties of the Trustee or any co-trustee with
respect to such Debt Securities in addition to the obligations and duties
otherwise specified in this Indenture;

 

(xi)           the
percentage of the principal amount at which such Debt Securities will be issued
and, if other than the principal amount thereof, the portion of the principal
amount of Debt Securities of the series that shall be payable upon declaration
of acceleration of the Maturity thereof pursuant to Section 6.2 or the
method by which such portion shall be determined;

 

(xii)          whether
the amount of payments of principal of (and premium, if any, on) or interest on
the Debt Securities of the series may be determined with reference to an index,
formula or other method, and the manner in which such amounts shall be
determined;

 

(xiii)         whether
Article Fourteen is inapplicable to the Debt Securities of the series and any
provisions in modification of, in addition to or in lieu of the provisions of
Article Fourteen that shall be applicable to the Debt Securities of the series;

 

(xiv)        provisions,
if any, granting special rights to the Holders of Debt Securities of the series
upon the occurrence of such events as may be specified;

 

(xv)         any
deletions from, modifications of or additions to the Events of Default or
covenants of the Company with respect to Debt Securities of the series, whether
or not such Events of Default or covenants are consistent with the Events of
Defaults or covenants set forth herein;

 

22

 

(xvi)        whether
Debt Securities of the series are to be issuable as Registered Debt Securities,
Bearer Debt Securities (to the extent permitted by Argentine regulations) or
both, any restrictions applicable to the offer, sale or delivery of Bearer Debt
Securities or Registered Debt Securities, whether any Debt Securities of the
series are to be issuable initially in temporary global form without interest
coupons and whether any Debt Securities of the series are to be issuable in
permanent global form (including a Regulation S Global Registered Debt Security,
a Restricted Global Debt Security or an Unrestricted Global Debt Security) and,
if so, whether beneficial owners of interests in any such permanent global Debt
Security may exchange such interests for Debt Securities of such series and of
like tenor of any authorized form and denomination and the circumstance under
which any such exchanges may occur, if other than in the manner provided in
Section 3.9, whether Bearer Debt Securities of the series may be exchanged
for Registered Debt Securities of the series, and the circumstances under which
and the place or places where such exchanges may be made, and if Debt
Securities of the series are to be issuable in global form, the identity of any
initial depositary therefor;

 

(xvii)       the
date as of which any Bearer Debt Securities of the series and any temporary
global Debt Security representing Outstanding Debt Securities of the series
shall be dated if other than the date of original issuance of the first Debt
Security of the series to be issued;

 

(xviii)      the
Person to whom any interest on any Registered Debt Security of the series shall
be payable, if other than the Person in whose name such Debt Security (or one
or more Predecessor Debt Securities) is registered at the close of business on
the Regular Record Date for such interest, the manner in which, or the Person
to whom, any interest on any Bearer Debt Security of the series shall be
payable, if otherwise than upon presentation and surrender of the coupons
appertaining thereto as they severally mature, and the extent to which, or the
manner in which, any interest payable on a temporary global Debt Security on an
Interest Payment Date will be paid if other than in the manner provided in
Section 3.7;

 

(xix)         whether
and under what circumstances the Company will pay Additional Amounts as
contemplated in clause (g) of this Section 3.1 on the Debt Securities of
the series to any Holder who is not a United States person (including any
modification to the definition of such term) in respect of any tax, assessment
or governmental charge and, if so, whether the Company will have the option to
redeem such Debt Securities rather than pay such Additional Amounts (and the
terms of any such option), in each case, other than in the manner provided in
clause (g) of this Section 3.1 and in Section 13.1; and

 

(xx)          any
other terms, conditions, rights and preferences (or limitations on such rights
and preferences) relating to the series (which terms shall not be inconsistent
with the requirements of the Trust Indenture Act or the provisions of this
Indenture).

 

All Debt Securities of any one series and the coupons
appertaining to any Bearer Debt Securities of such series shall be
substantially identical (provided
that no such temporary global Bearer Debt Security shall be issued with
interest coupons) except, in the case of Registered Debt Securities, as to
denomination and except as may otherwise be provided in or

 

23

 

pursuant to such
Board Resolution (subject to Section 3.2), set forth in such Officers’
Certificate or in any such indenture supplemental hereto.  Not all Debt Securities of any one series
need be issued at the same time, and, unless otherwise provided, a series may
be reopened for issuances of additional Debt Securities of such series; provided, however, that no series of
Public Debt Securities can be reopened for issuance of additional Debt
Securities without the prior approval of the CNV.

 

(e)           Unless
otherwise determined pursuant to clause (d)(xix) of this Section 3.1,
payments in respect of principal of, premium on, if any, or interest on the
Debt Securities of any series shall be made in accordance with
Section 3.7.

 

(f)            Whenever
in this Indenture there is a reference, in any context, to the payment of the
principal of, premium, if any, on or interest on, or in respect of, any Debt
Security or any other amount payable under or with respect to any Debt
Security, such payment shall be deemed to include the payment of Additional
Amounts provided for in this Section to the extent that, in such context,
Additional Amounts are, were or would be payable in respect of such payment
pursuant to the provisions of such Section, and the express mention of the
payment of Additional Amounts (if applicable) in any provision hereof shall not
be construed as excluding Additional Amounts in those provisions hereof where
such express mention is not made.

 

(g)           All
payments by the Company in respect of the Debt Securities will be made free and
clear of and without deduction or withholding for or on account of any present
or future taxes, duties, levies, imposts, assessments or other charges
(including penalties, interest and other additions thereto) that are imposed by
or on behalf of any political subdivision or territory or possession of
Argentina or any authority or agency therein or thereof having power to tax (“Taxes”)
unless such withholding or deduction is required by law.  If the Company is required by law to make any
such withholding or deduction, the Company will pay to any Holder such
additional amounts (“Additional Amounts”) as may be necessary in order
that every net payment made by the Company on the Holder’s Debt Security after
deduction or withholding for or on account of any such present or future Taxes
will not be less than the amount then due and payable on such Debt
Security.  The foregoing obligation to
pay Additional Amounts, however, will not apply to (i) any Taxes that would not
have been imposed but for the existence of any present or former connection
between such Holder and Argentina other than the mere receipt of such payment
or the ownership or holding of such Debt Security; (ii) any Taxes that would
not have been imposed but for the presentation by the Holder of such Debt
Security for payment on a date more than 15 days after the date on which such
payment became due and payable or the date on which payment thereof is duly
provided for, whichever occurs later; (iii) if the beneficial owner of such
Debt Security had been the Holder of the Debt Security and would not be
entitled to the payment of Additional Amounts; (iv) any Taxes required to be
deducted or withheld by any paying agent from a payment on a Debt Security, if
such payment can be made without such deduction or withholding by any other
paying agent; or (v) any Taxes that would not have been imposed but for the
failure of the Holder to comply with any applicable certification,
documentation, information or other reporting requirement concerning the
nationality, residence, identity or connection with the taxing jurisdiction of
the Holder or beneficial owner of such Debt Security.

 

24

 

(h)           The
Company agrees to pay any stamp, issue, registration, documentary or other
similar taxes and duties, including interest and penalties that may be imposed
by Argentina or the United States in connection with the creation, issue and
offering of the Debt Securities.

 

(i)            At
least ten Business Days prior to each Interest Payment Date, any Redemption
Date or the Maturity of any series of Debt Securities, the Company agrees to
furnish to the Principal Paying Agent and each other Paying Agent to whom the
Company has provided funds directly pursuant to Section 3.7 a certificate
of an Authorized Officer specifying the amount required to be deducted or
withheld on payments of principal of, premium, if any, on or interest on such
Debt Securities due on such date of payment for or on account of any Taxes and
certifying that such amount will be withheld and paid by the Company.  The Company covenants to indemnify the
Principal Paying Agent and the other Paying Agents for, and to hold each of
them harmless against, any loss, liability or expense reasonably incurred
without negligence, bad faith or willful misconduct on their respective part,
arising out of or in connection with actions taken or not taken by any of them
in reliance on any certificate furnished to them pursuant to this paragraph or
the failure to furnish any such certificate. 
The obligations of the Company under the preceding sentence shall
survive payment of all the Debt Securities, the satisfaction and discharge of
this Indenture and the resignation or removal of the Trustee, Registrar,
Co-Registrar or any Paying Agent.

 

Any certificate required by this Section to be
provided to the Principal Paying Agent and any other Paying Agent shall be
deemed to be duly provided if telecopied to the Principal Paying Agent and such
other Paying Agent.  Upon request, the
Company shall provide the Principal Paying Agent with documentation reasonably
satisfactory to the Principal Paying Agent evidencing the payment of Taxes in
respect of which the Company has paid any Additional Amounts.  Copies of such documentation shall be made
available to the Holders or the other Paying Agents, as applicable, upon
request therefor.

 

(j)            Unless
otherwise specified in the indenture supplement pursuant to which the Debt
Securities of any series are established, the Debt Securities shall be subject
to redemption for tax and other reasons as provided in Article Thirteen,
and shall be subject to defeasance at the option of the Company as provided in
Article Fourteen.

 

SECTION 3.2  Authentication, Delivery and Dating of
Debt Securities.  At any time and
from time to time after the execution and delivery of this Indenture, the
Company may deliver Debt Securities of any series, together with any coupon
appertaining thereto, executed by the Company pursuant to Section 3.3 to the
Trustee for authentication, together with the applicable documents referred to
below in this Section 3.2, and the Trustee shall thereafter authenticate and
deliver such Debt Securities to or upon the order of the Company (specified in
the Company Order referred to below in this Section 3.2) or pursuant to such
procedures acceptable to the Trustee as may be specified from time to time by a
Company Order; provided, however, that in
connection with its sale during the restricted period (within the meaning of
U.S. Treasury Regulation Section 1.163-5(c)(2)(i)(D)(7)), no Bearer Debt
Security shall be mailed or otherwise delivered to any location in the United
States; and provided, further, that, a Bearer Debt
Security (other than a Temporary Global Bearer Debt Security) shall not be
delivered to any person entitled to delivery thereof except upon delivery by
such person to the Company or its agent of a certificate as to non-U.S.
beneficial ownership of such Debt Security in the form set

 

25

 

forth in Exhibit
F-II of this Indenture.  The Company
Order (and any related Officers’ Certificate and/or Opinion of Counsel) to be
delivered by the Company may be transmitted via facsimile (with the original to
be subsequently delivered by mail) and may provide instructions or provide for
further instructions from the Company, as to the form and terms of such Debt
Securities.  In authenticating such Debt
Securities and accepting the additional responsibilities under this Indenture
in relation to such Debt Securities, the Trustee shall be entitled to receive
and (subject to TIA Sections 315(a) through 315(d)) shall be fully protected in
relying upon:

 

(1)           a
Company Order requesting such authentication setting forth instructions as to
delivery (if the Debt Securities are not to be delivered to the Company) and
completion of any terms not set forth in such Debt Securities as executed by
the Company or setting forth procedures acceptable to the Trustee as to such
completion and delivery;

 

(2)           any
Board Resolution or executed supplemental indenture referred to in Sections 2.1
and 3.1 by or pursuant to which the forms and terms of such Debt Securities
were established;

 

(3)           to
the extent the forms and terms of such Debt Securities are determined pursuant
to (and are not set forth in) a Board Resolution or supplemental indenture
pursuant to Sections 2.1 and 3.1, an Officers’ Certificate, prepared in
accordance with Section 12.5, either setting forth the form or forms and terms
of the Debt Securities and related coupons, if any, and describing the actions
taken to establish such form or forms and terms or showing the authority to
establish such form or forms and terms by Company Order or procedures specified
therein; and

 

(4)           an
Opinion of Counsel or Opinions of Counsel, prepared in accordance with Section
12.5, which shall state (a) that the form or forms and terms of such Debt
Securities and related coupons, if any, have been or will, when established in
compliance with procedures therein described, be duly authorized and
established in conformity with the provisions of this Indenture; and (b) that
such Debt Securities together with any coupons appertaining thereto, when
authenticated and delivered by the Trustee and issued by the Company in the manner
and subject to any conditions specified in such Opinion of Counsel, will
constitute the valid and binding obligations of the Company, enforceable
against the Company in accordance with their terms, subject to such matters as
counsel may therein specify.

 

Notwithstanding the provisions of Section 2.1 and of
this Section 3.2, if not all the Debt Securities of any series are to be issued
at one time, it shall not be necessary to deliver the Officers’ Certificate
otherwise required pursuant to (3) above or the Company Order and Opinion of
Counsel otherwise required pursuant to this Section 3.2 prior to or at the time
of issuance of each Debt Security, but such documents shall be delivered prior
to or at the time of issuance of the first Debt Security of such series.

 

The Trustee shall have the right to decline to
authenticate and deliver any Debt Securities under this Section if the Trustee,
(x) being advised by counsel, and after having consulted with counsel to the
Company, determines that such action may not lawfully be taken

 

26

 

by the Company,
(y) acting in good faith through its Board of Directors or a committee of its
directors or a Responsible Officer shall determine that such action would
expose the Trustee to personal liability to existing Holders or (z) determines
that such action will affect its rights, duties, obligations or immunities
hereunder in a manner not reasonably acceptable to it.

 

All payments made in respect of Bearer Debt Securities
represented by a Temporary Global Debt Security and all payments made in
connection with an original issuance of a Bearer Debt Security represented by a
Permanent Global Bearer Debt Security will be made to Euroclear or Clearstream,
Luxembourg only with respect to that portion of the Temporary Global Bearer
Debt Security or originally issued Permanent Global Bearer Debt Security, as
the case may be, in respect of which (i) Euroclear or Clearstream,
Luxembourg shall have delivered to the Trustee a certificate or certificates
substantially in the form of Exhibit F-II and (ii) the member
organizations through which such beneficial ownership in such Debt Securities
is held has delivered to Euroclear or Clearstream, Luxembourg, as the case may
be, a certificate substantially in the form of Exhibit F-I
hereto.  Furthermore, no such Bearer Debt
Security may be delivered in connection with its sale during the restricted
period (within the meaning of U.S. Treasury Regulation Section
1.163-5(c)(2)(i)(D)(7)) unless such certification by both (i) Euroclear or
Clearstream, Luxembourg and (ii) such member organization shall have been
complied with.  If any Debt Security
shall be represented by a Permanent Global Bearer Debt Security, then, for
purposes of this Section and Section 3.5, the notation of a beneficial
owner’s interest therein upon original issuance of such Debt Security or upon
exchange of a portion of a Temporary Global Bearer Debt Security shall be
deemed to be delivery in connection with its original issuance of such
beneficial owner’s interest in such Permanent Global Bearer Debt Security.  No exchange of an interest in a Temporary
Global Bearer Debt Security to either (i) an interest in a Permanent
Global Bearer Debt Security or (ii) a Bearer Debt Security in definitive
form, may be effected until and unless such certification of non-U.S.
beneficial ownership as described above shall have been received by
(i) Euroclear or Clearstream, Luxembourg and (ii) the Trustee.  Delivery of such certificate by a Member
Organization shall constitute an irrevocable instruction by such Member
Organization to Euroclear or Clearstream, Luxembourg, as the case may be, to
exchange, on the applicable Exchange Date, the beneficial interest covered by
such certificate for such Bearer Debt Securities as such Member Organization
may specify.  Except as permitted by
Section 3.10, the Trustee shall not authenticate and deliver any Bearer
Debt Security unless all appurtenant coupons for interest then matured have
been detached and canceled.

 

Except as otherwise provided herein, each Debt
Security and any coupons appertaining thereto shall be dated the date of its
authentication.

 

SECTION 3.3  Execution of Debt Securities and Any
Coupons Appertaining Thereto.  The
Debt Securities shall be executed on behalf of the Company by each of (a) a
member of its Board of Directors and (b) a member of its Supervisory
Board.  Typographical and other minor
errors or defects in any such signature shall not affect the validity or
enforceability of any Debt Security that has been duly authenticated and
delivered by the Trustee.

 

27

 

In case any member of the Board of Directors or the
Supervisory Board who shall have signed any of the Notes shall cease to be such
member before the Note so signed shall be authenticated and delivered by the
Trustee or disposed of by or on behalf of the Company, such Debt Security
nevertheless may be authenticated and delivered or disposed of as though the
Person who signed such Debt Security had not ceased to be such member.

 

SECTION 3.4  Certificate of Authentication.  Only such Debt Securities as shall bear
thereon a certificate of authentication substantially in the form of
Exhibit B hereto, executed by the Trustee by the manual signature of one
of its authorized signatories, shall be entitled to any benefits under this
Indenture or be valid or obligatory for any purpose.  Such certificate by the Trustee upon any Debt
Security executed by the Company shall be conclusive evidence that the Debt
Security so authenticated has been duly authenticated and delivered hereunder
and that the Holder is entitled to the benefits of this Indenture.

 

The Trustee may appoint an Authenticating Agent
reasonably acceptable to the Company to authenticate the Debt Securities.  Unless limited by the terms of such
appointment, an Authenticating Agent may authenticate Debt Securities whenever
the Trustee may do so.  Each reference in
this Indenture to authentication by the Trustee includes authentication by such
agent.  An Authenticating Agent has the
same rights as any Registrar, Paying Agent or agent for service of notices and
demands.

 

SECTION 3.5  Temporary Debt Securities.  Pending the preparation of definitive Debt
Securities of any series, the Company may execute, and upon Company Order the
Trustee shall authenticate and deliver, temporary Debt Securities which are
printed, lithographed, typewritten, mimeographed or otherwise produced, in any
authorized denomination, substantially of the tenor of the definitive Debt
Securities of any series in lieu of which they are issued, in registered form
or, if authorized, in bearer form without interest coupons and with such
appropriate insertions, omissions, substitutions and other variations as the
officers executing such Debt Securities may determine, as conclusively
evidenced by their execution of such Debt Securities.

 

If temporary Debt Securities of such series are
issued, the Company shall cause definitive Debt Securities of such series to be
prepared without unreasonable delay. 
After the preparation of such definitive Debt Securities, the temporary
Debt Securities of such series shall be exchangeable for such definitive Debt
Securities upon surrender of the temporary Debt Securities of such series to
the Trustee, without charge to the Holder. 
Upon surrender for cancellation of any one or more temporary Debt
Securities of any series (accompanied by any unmatured coupons appertaining
thereto), the Company shall execute and the Trustee shall authenticate and
deliver in exchange therefor a like principal amount of definitive Debt
Securities of the same series of authorized denominations; provided,
however, that no definitive Bearer Debt Security shall be delivered
in exchange for a temporary Registered Debt Security; and provided,
further, that a definitive Bearer Debt Security shall be delivered
in exchange for a temporary Bearer Debt Security only after compliance with the
certification requirements set forth in Section 3.2.  Until so exchanged, temporary Debt Securities
of any series will evidence the same debt and will be entitled to the same
benefits under this Indenture as the definitive Debt Securities of such series
in lieu of which they have been issued.

 

28

 

SECTION 3.6  Bearer Debt Securities; Global Registered
Debt Securities; Book-Entry Provisions; Certificated Debt Securities.

 

(a)           Bearer
Debt Securities.  Unless otherwise
specified pursuant to Section 3.1, this Section 3.6(a) shall apply to
all Bearer Debt Securities, which, to the extent permitted under Argentine law,
may be issued hereunder pursuant to Section 3.1.

 

Each Bearer Debt Security shall initially be issued
only in the form of one or more Temporary Global Bearer Debt Securities, which
shall be deposited with or on behalf of a Common Depositary, for credit to the
respective accounts of the beneficial owners of the Debt Securities represented
thereby (or to such other accounts as they may direct), provided
that all such accounts shall be maintained at or through Euroclear or
Clearstream, Luxembourg.  Until the
Exchange Date, no Bearer Debt Security shall be mailed or otherwise delivered
in connection with its sale to any location in the United States of America (including
the States thereof and the District of Columbia), its territories, its
possessions and other areas subject to its jurisdiction (the “United States”).  On or after the Exchange Date, a Temporary
Global Bearer Debt Security shall be exchanged for a Permanent Global Bearer
Debt Security or for Bearer Debt Securities in definitive form, as specified
pursuant to Section 3.1, provided, however,
that no Temporary Global Bearer Debt Security or portion thereof may be
exchanged for any Bearer Debt Security in certified form until (A) on or
after the applicable Exchange Date and (B) with respect to each beneficial
interest in the portion of such Temporary Global Bearer Debt Security to be so
exchanged, the beneficial owner has delivered to Euroclear and Clearstream,
Luxembourg, as the case may be, a certificate in substantially the form of F-I,
and Euroclear or Clearstream, Luxembourg, as the case may be, has delivered to
the Trustee a certificate in substantially the form of Exhibit F-II.  Each such certificate shall be dated no
earlier than 15 days prior to the earlier of the date on which such Bearer
Debt Security is delivered and the applicable Exchange Date.

 

Upon the exchange of any Temporary Global Bearer Debt
Security or portion thereof for Bearer Debt Securities in certificated form or
for interests in a Permanent Global Bearer Debt Security, such Temporary Global
Bearer Debt Security shall be endorsed to reflect the reduction of the
principal amount evidenced thereby, whereupon its remaining principal amount
shall be reduced for all purposes by the amount so exchanged.  Until so exchanged in full, such Temporary
Global Bearer Debt Security shall in all respects be entitled to the same
benefits under this Indenture as the Bearer Debt Securities in certificated
form that may be authenticated and delivered hereunder in exchange therefor,
except with respect to the payment of interest as described in Section 3.7.

 

Beneficial interests in a Permanent Global Bearer Debt
Security of any series shall be exchangeable for Bearer Debt Securities in certificated
form of such series, in whole but not in part, only if (i) Euroclear or
Clearstream, Luxembourg is closed for business for a continuous period of 14
days (other than by reason of legal holidays), or either Euroclear or
Clearstream, Luxembourg announces an intention to do so, or to cease to hold
through a Common Depositary, or to act as a clearing agency for, such Permanent
Global Bearer Debt Security, or (ii) an Event of Default with respect to such
series of Debt Securities has occurred and is continuing.  Any Permanent Global Bearer Debt Security to
be so exchanged shall be surrendered to the Trustee for exchange.

 

29

 

(b)           Global
Registered Debt Securities; Restricted Certificated Debt Securities.  Unless otherwise provided herein or pursuant
to Section 3.1 hereof, Registered Debt Securities of any series shall be
issued initially in the form of one or more Regulation S Global Registered Debt
Securities, U.S. Global Registered Debt Securities or Restricted Global
Registered Debt Securities as described below.

 

Registered Debt Securities of any series offered and
sold in “offshore transactions” in reliance on Regulation S under the
Securities Act shall be issued initially in the form of one or more permanent
Global Registered Debt Securities without interest coupons, substantially in
the form of Exhibit A hereto, with such applicable legends as are provided
in Exhibit A hereto, except as otherwise permitted herein (each a “Regulation S
Global Registered Debt Security”), which shall be deposited on the Issue
Date on behalf of the purchasers of the Debt Securities represented thereby
with the Trustee, at its New York City office, as custodian for the Depositary,
and registered in the name of a nominee of the Depositary, for credit to their
respective accounts (or to such accounts as they may direct) at Euroclear or
Clearstream, Luxembourg, duly executed by the Company and authenticated by the
Trustee as provided herein.  Until the
40th day after the later of the commencement of the offering of such Debt
Securities and the Issue Date, a beneficial interest in a Regulation S
Global Registered Debt Security of such series may be held only through
Euroclear or Clearstream, Luxembourg. 
Beginning 40 days after the later of the commencement of the
offering of such Debt Securities and the Issue Date (but not earlier),
investors may also hold such interest through organizations other than
Euroclear or Clearstream, Luxembourg that are Participants.  The aggregate principal amount of each
Regulation S Global Registered Debt Security of such series may from time
to time be increased or decreased by adjustments made by the Co-Registrar on
Schedule A thereto, as provided herein.

 

Debt Securities of any series offered and sold to “qualified
institutional buyers” in reliance on Rule 144A under the Securities Act
shall be issued initially in the form of one or more permanent Global
Registered Debt Securities, without interest coupons, substantially in the form
of Exhibit A hereto, with such applicable legends as are provided in
Exhibit A hereto, except as otherwise permitted herein (each a “Restricted
Global Registered Debt Security”), which shall be deposited on the Issue
Date on behalf of the purchasers of the Debt Securities represented thereby
with the Trustee, at its New York office, as custodian for the Depositary, and
registered in the name of the Depositary, duly executed by the Company and
authenticated by the Trustee as provided herein.  The aggregate principal amount of each
Restricted Global Registered Debt Security of such series may from time to time
be increased or decreased by adjustments made by the Registrar on Schedule A
thereto, as provided herein.

 

Debt Securities of any series offered and sold to
Institutional Accredited Investors who are not “qualified institutional buyers”
(as defined in Rule 144A under the Securities Act) shall be issued in the
form of a Debt Security in certificated, fully registered form, without
interest coupons, substantially in the form set forth in Exhibit A hereto,
with such applicable legends as are provided in Exhibit A hereto, except
as otherwise permitted herein (each such Debt Security, as well as interests in
any Global Registered Debt Security of such series that are subsequently
exchanged for such a Debt Security pursuant to Section 3.9(b)(iv), (v)
or (viii), a “Restricted Certificated Debt Security” of such
series).  Upon issuance, any such
Restricted

 

30

 

Certificated Debt
Security shall be duly executed by the Company and authenticated by the Trustee
as hereinafter provided.

 

Debt Securities of any series offered and sold upon
registration with the U.S. Securities and Exchange Commission shall be issued
as, and any Restricted Global Registered Debt Security or a Regulation S
Global Registered Debt Security or interest therein tendered in a registered
exchange offer and presented to the Co-Registrar for exchange, shall be
exchanged for, a single, permanent Global Registered Debt Security without
interest coupons substantially in the form set forth in Exhibit A hereto,
with the legends provided in Exhibit A hereto (each, a “U.S. Global
Registered Debt Security”) which shall be deposited on behalf of the
beneficial owners of the Registered Debt Securities represented thereby with
the Trustee, at its New York office, as custodian for the Depositary and
registered in the name of the Depositary, duly executed by the Company and
authenticated by the Trustee as provided herein.  If Restricted Certificated Debt Securities
are tendered in a registered exchange offer and presented to the Co-Registrar
for exchange, they will be exchanged for interests in a U.S. Global Registered
Debt Security.  Any Debt Securities or
interests in a Restricted Global Registered Debt Security or a
Regulation S Global Registered Debt Security so tendered shall be
exchanged for U.S. Global Registered Debt Securities or interests in a U.S.
Global Registered Debt Security, in each case of equal principal amount, upon
surrender to the Co-Registrar of the Debt Securities or interests in a
Restricted Global Registered Debt Security or a Regulation S Global
Registered Debt Security to be exchanged in accordance with the terms of the
registered exchange offer; provided that
the Company has delivered to the Trustee an Officers’ Certificate pursuant to
Section 3.9 hereof and provided further
that that Debt Securities or interests in a Restricted Global Registered Debt
Security or a Regulation S Global Registered Debt Security so surrendered
for exchange are accompanied by a letter of transmittal and duly endorsed or
accompanied by a written instrument of transfer in form satisfactory to the
Company, the Trustee and the Co-Registrar and duly executed by the Holder
thereof or such Holder’s attorney who shall be duly authorized in writing to
execute such document on behalf of such Holder.

 

Owners of beneficial interests in Global Registered
Debt Securities of any series shall be entitled or required, as the case may
be, under the circumstances described below in this Section 3.6(b), to
receive physical delivery of Certificated Debt Securities of such series.

 

Except as provided in Section 3.9(b)(iv), beneficial
interests in a Restricted Global Registered Debt Security or a U.S. Global
Registered Debt Security of any series shall be exchangeable or transferable,
as the case may be, for Certificated Debt Securities of such series only if
(i) the Depositary notifies the Company or the Trustee that it is
unwilling or unable to continue as depositary for such Restricted Global
Registered Debt Security, or the Depositary ceases to be a “Clearing Agency”
registered under the Exchange Act at a time when it is required to be, and a
successor depositary registered as a “Clearing Agency” under the Exchange Act
is not appointed by the Company within ninety (90) days after receiving
such notice or becoming aware that the Depositary is no longer so registered,
(ii) the Company executes and delivers to the Trustee a notice that such
Restricted Global Registered Debt Security or a U.S. Global Registered Debt
Security shall be so transferable and exchangeable, or (iii) an Event of
Default with respect to such series of Debt Securities has occurred and is
continuing.

 

31

 

Except as provided in Section 3.9(b)(iv), beneficial
interests in a Regulation S Global Registered Debt Security of any series shall
be exchangeable or transferable, as the case may be, for Certificated Debt
Securities of such series only if (i) Euroclear or Clearstream, Luxembourg is
closed for business for a continuous period of 14 days (other than by reason of
legal holidays), or either Euroclear or Clearstream, Luxembourg announces an
intention to do so, or to cease to hold through a Common Depositary, or to act
as a clearing agency for, such Regulation S Global Registered Debt Security,
(ii) the Company executes and delivers to the Trustee a notice that such
Regulation S Global Registered Debt Security shall be so transferable and exchangeable,
or (iii) an Event of Default with respect to such series of Debt Securities has
occurred and is continuing.  Any
Regulation S Global Registered Debt Security to be so exchanged shall be
surrendered to the Trustee for exchange.

 

Upon the occurrence of any of the events described in
the two preceding paragraphs, the Company shall cause the appropriate
Certificated Debt Securities (with the appropriate legends) to be delivered to
the owners of beneficial interests in such Global Registered Debt Security.  Restricted Certificated Debt Securities shall
be exchangeable or transferable for interests in other Restricted Certificated
Debt Securities as described in Section 3.9(b)(v) hereof.

 

(c)           Book-Entry
Provisions.  This Section 3.6(c)
shall apply to any Restricted Global Registered Debt Security,
Regulation S Global Registered Debt Security or U.S. Global Registered
Debt Security (collectively, the “Global Registered Debt Securities”)
deposited with or on behalf of the Depositary.

 

The Company shall execute and the Trustee shall, in
accordance with this Section 3.6(c), authenticate and deliver to the
Depositary, for any series, one or more Global Registered Debt Securities that
shall (i) represent an aggregate amount equal to the aggregate principal
amount of Outstanding Debt Securities of such series as the Company shall have
directed the Trustee to authenticate in the form of one or more Global
Registered Debt Securities of such series and (ii) bear the relevant
legend or legends substantially to the effect set forth in Exhibit A
hereto, as the case may be.

 

Participants shall have no rights under this Indenture
or under any Global Registered Debt Security held on their behalf by the
Depositary or by the Trustee as the custodian of the Depositary with respect to
such Global Registered Debt Security, and the Depositary may be treated by the
Company, the Trustee and any agent of the Company or the Trustee as the
absolute owner of such Global Registered Debt Security for all purposes
whatsoever.  Notwithstanding the
foregoing, nothing herein shall prevent the Company, the Trustee or any agent
of the Company or the Trustee from giving effect to any written certification,
proxy or other authorization furnished by the Depositary or impair, as between
the Depositary and its Participants, the operation of customary practices of
such Depositary governing the exercise of the rights of a Holder of a
beneficial interest in any Global Registered Debt Security.

 

(d)           Restricted
Certificated Debt Securities.  Except
as provided in Section 3.6(b), owners of beneficial interests in
Restricted Global Registered Debt Securities, Regulation S Global
Registered Debt Securities or U.S. Global Registered Debt Securities will

 

32

 

not be entitled to
receive physical delivery of Certificated Debt Securities.  Institutional Accredited Investors who
purchased Debt Securities other than Debt Securities sold in reliance on
Regulation S under the Securities Act will receive Restricted Certificated
Debt Securities substantially in the form of Exhibit A hereto, with such
applicable legends as are provided in Exhibit A hereto.

 

(e)           Cessation
of Restrictions.  After a transfer of
any interests in any Restricted Global Registered Debt Securities or Regulation S
Global Registered Debt Securities during the period of the effectiveness of a
shelf registration statement with respect to such Debt Securities, all
requirements pertaining to legends on such Debt Securities will cease to apply,
and a U.S. Global Registered Debt Security or interests in a U.S. Global
Registered Debt Security, in each case without legends, will be available to
the Holder of the Debt Securities so transferred.

 

SECTION 3.7  Payment of Principal, Premium and
Interest; Interest Rights Preserved. 
All payments of principal of, premium, if any, on and interest on the
Debt Securities of any series shall be allocated on a pro rata basis among all
Debt Securities of such series outstanding, without preference or priority of
any kind among the Debt Securities of such series.  Unless otherwise specified pursuant to
Section 3.1(d)(xx), the following provisions shall apply:

 

(a)           Payment
of principal of, premium, if any, on and interest on any Interest Payment Date
(except for payment at Maturity) with respect to any Registered Debt Security
of each series shall be made to the Person in whose name such Debt Security is
registered at the close of business on the Regular Record Date immediately
preceding such Interest Payment Date. 
Premium, if any, and interest payable at Maturity shall be paid to the
Person to whom principal is payable. 
Payment of principal at Maturity shall be paid to the registered Holder
of a Debt Security against presentation or surrender of such Debt Security.

 

Holders of Registered Debt Securities will receive
payments of principal, premium, if any, and interest at Maturity in U.S.
Dollars, unless such Registered Debt Securities are denominated in a specified
currency other than U.S. Dollars and such Holder has elected to receive payment
in such specified currency.  Payments of
principal, premium, if any, and interest will be received by such Holder by
check (mailed to the Holder of such Debt Security at such Holder’s address
appearing in the Debt Security Register maintained by the Registrar and the
Co-Registrar) drawn on, or by wire transfer to an account maintained by the
Holder with, a bank in the principal financial center of the country issuing
the relevant currency.  All payments on a
Global Registered Debt Security will be made to the Depositary or its nominee,
as the case may be, as the registered owner and holder of such Global
Registered Debt Security and the Company will be fully discharged by payment to
the Depositary from any responsibility or liability in respect of each amount
so paid.  Upon receipt of any such
payment of principal, interest, premium or Additional Amounts, if any, in
respect of a Global Registered Debt Security, the Depositary will immediately
credit Participants’ accounts with payments in amounts proportionate to their
respective beneficial interests in the principal amount of such Global
Registered Debt Security as shown on the records of the Depositary.  Payments of principal, premium, if any, and
interest at Maturity by wire transfer will only be made to a Holder of at least
U.S.$1,000,000 aggregate principal amount of Registered Debt Securities (or in
the case of Debt Securities not denominated in U.S. Dollars, the U.S. Dollar
equivalent thereof), upon written application by such Holder to the Corporate
Trust Office of the Trustee accompanied by

 

33

 

appropriate wire
transfer instructions not later than the fifteenth (15th) day immediately
preceding the Maturity.  The Company
shall pay any reasonable administrative costs in connection with making any
such payments.  Except as otherwise
provided in clause (h) of this Section 3.7, payments of interest in respect of
any Registered Debt Security (other than at Maturity) will be made on each
applicable Interest Payment Date in U.S. Dollars, unless such Registered Debt
Security is denominated in a specified currency other than U.S. Dollars and the
Holder of such Registered Debt Security has elected to receive payment in such
specified currency, to the persons shown on the Debt Security Register at the
close of business on the relevant Regular Record Date by check (mailed to the
Holder of such Debt Security at such Holder’s address appearing in the Debt
Security Register maintained by the Registrar and the Co-Registrar) drawn on,
or by wire transfer to an account maintained by the Holder with a bank in the
principal financial center of the country issuing the relevant currency.  Payments of interest (other than at Maturity)
by wire transfer will only be made to a Holder of at least U.S.$1,000,000
aggregate principal amount of Registered Debt Securities (or in the case of
Debt Securities not denominated in U.S. Dollars, the U.S. Dollar equivalent
thereof) upon written application by such Holder to the Corporate Trust Office
of the Trustee accompanied by appropriate wire transfer instructions not later
than the relevant Regular Record Date immediately preceding the Interest
Payment Date.  Unless revoked in writing,
any such designation made by such Holder with respect to such Debt Securities
shall remain in effect with respect to any future payments with respect to such
Debt Securities payable to such Holder. 
The Company shall pay any reasonable administrative costs in connection
with making any such payments.

 

With respect to Debt Securities denominated in a
specified currency other than U.S. Dollars, on or before 12:00 noon, Buenos
Aires time, two Business Days prior to the Interest Payment Date in respect of
any such Registered Debt Securities, the Company will deposit in such specified
currency in a bank account designated by the Trustee the aggregate amount of
principal and interest due on such date with respect to the relevant Registered
Debt Securities.  The U.S. Dollar amount
to be received by Holders not electing to receive payment in such specified
currency will be the amount of such specified currency received by the Trustee
with respect to such Debt Securities from the Company converted by the Exchange
Rate Agent to U.S. Dollars, after the deduction of applicable taxes and
expenses.

 

On or before 12:00 noon, Buenos Aires time, two
Business Days prior to an Interest Payment Date in respect of any Global
Registered Debt Security denominated in a specified currency other than U.S.
Dollars, the Company will deposit in a bank account designated by the Trustee
in the relevant specified currency the aggregate amount of principal and
interest due on such Interest Payment Date on the Debt Securities represented
by such Global Registered Debt Security. 
Thereafter, the Trustee will arrange with the Exchange Rate Agent for
the conversion into U.S. Dollars of such aggregate amount after the deduction
of applicable taxes and expenses and any portion of the amount as to which the
beneficial owners of Debt Securities represented by such Global Registered Debt
Security have elected to receive payment in the specified currency thereof in
accordance with the procedures provided below. 
The Trustee, as Paying Agent, will deliver to DTC such U.S. Dollar
amount in same day funds for payment through DTC’s settlement system.

 

34

 

With respect to Debt Securities held in the book-entry
settlement system of DTC and denominated in a specified currency other than
U.S. Dollars, a Holder of such Debt Securities electing to receive payments of
principal or interest in such specified currency must notify the DTC
Participant through which its interest is held on or prior to the applicable
Regular Record Date, in the case of the payment of interest (other than at
Maturity), and by the date established by the relevant Participant, in the case
of payment of principal, premium, if any, and interest at Maturity, of such
Holder’s election to receive all or a portion of such payment in such currency.
 Such Participant must notify DTC thereof
on or prior to the date which is the third Business Day after the Regular
Record Date for any payment of interest (other than at Maturity) and on or
prior to a date which is twelve days prior to the payment of principal,
premium, if any, and interest at Maturity. 
If complete instructions are received by a DTC Participant from the
relevant Holder and forwarded by the DTC Participant to DTC on or prior to such
dates, and, if DTC subsequently notifies the Trustee by facsimile transmission
(promptly confirmed in writing) of such instructions with appropriate wire
transfer instructions on the Business Day immediately succeeding any such date,
the Holder will receive payments in such specified currency.

 

(b)           Subject
to applicable laws and regulations, any payment of principal of, premium, if
any, on and interest on a Permanent Global Bearer Debt Security of each series
or Bearer Debt Securities in definitive form will be made on each Interest
Payment Date (except for payment at Maturity) against presentation to and
endorsement of such Permanent Global Bearer Debt Security by the Common
Depositary or presentation and surrender of the relevant coupons and, in the
case of final interest and principal payments (whether upon redemption,
acceleration or at Maturity), the surrender of the Permanent Global Bearer Debt
Security or the Bearer Debt Securities in certificated form, at the office of a
Paying Agent located outside the United States as the Company may appoint for
the purpose.  A record of each payment
made on a Permanent Global Bearer Debt Security of a series, distinguishing
between any payment of principal, premium, if any, and any payment of interest,
will be made on such Permanent Global Bearer Debt Security by the Paying Agent
to which such Permanent Global Bearer Debt Security is presented for the
purpose of making such payment, and such record shall be prima facie
evidence that the payment in question has been made.

 

(c)           Any
payment in respect of a Bearer Debt Security will be made by check (or, if such
Bearer Debt Security is a Global Bearer Debt Security, by transfer to an
account maintained by the Holder thereof). 
No payment will be made in respect of the Bearer Debt Securities at an
office or agency of the Company in the United States and no check in payment
thereof which is mailed shall be mailed to an address in the United States, nor
shall any transfer made in lieu of payment by check be made to an account
maintained by the payee with a bank in the United States.  Notwithstanding the foregoing, such payments
may be made at an office or agency located in the United States if (but only
if) payment of the full amount so payable at each office of each Paying Agent
and each other office outside the United States appointed and maintained for
the purpose pursuant to the Indenture is illegal or is effectively precluded
because of the imposition of exchange controls or similar restrictions on the
full payment or receipt of such amounts in U.S. Dollars.

 

If an Interest Payment Date for any Bearer Debt
Security occurs while such Bearer Debt Securities are represented by a
Temporary Global Bearer Debt Security or by an

 

35

 

originally issued
Permanent Global Bearer Debt Security, the related interest payment will be
made only to the extent that certification of non-U.S. beneficial ownership in
the form set out in Section 3.2 has been received by Euroclear or Clearstream,
Luxembourg, and provided by Euroclear or Clearstream, Luxembourg to the
Trustee.

 

The following legend will appear on all Temporary
Global Bearer Debt Securities, Permanent Global Bearer Debt Securities and any
other Bearer Debt Securities (except for certain Bearer Debt Securities having
a maturity of not more than one year) and on any coupons:  “Any United States person who holds this
obligation will be subject to the limitations under the United States income
tax laws including the limitations provided in Sections 165(j) and 1287(a) of
the Internal Revenue Code.”

 

(d)           Unless
otherwise specified pursuant to Section 3.1, in the event that on any Interest
Payment Date in respect of any series of Debt Securities denominated in a
specified currency other than the Peso, any restrictions or prohibition of
access to the Argentine foreign exchange market exists, the Company agrees to
pay all amounts payable under such Debt Securities either (i) by purchasing,
with Pesos, any series of “Bonos Externos de la República Argentina” or any
other securities or public or private bonds issued in Argentina and denominated
in U.S. Dollars, and transferring and selling such instruments outside
Argentina for the currency of such Debt Securities, or (ii) by means of any
other legal procedure existing in Argentina on any due date for payment under
such series of Debt Securities for the purchase of the specified currency of
such Debt Securities.  All costs and
taxes payable in connection with the procedures referred to in (i) and (ii)
above shall be borne by the Company.  The
Trustee shall have no obligation under this paragraph to acquire U.S. Dollars
in the event of any foreign exchange restriction or prohibition in Argentina.

 

(e)           Unless
otherwise specified pursuant to Section 3.1, if the date for payment of any
amount in respect of any Debt Security is not a Business Day, the Holder
thereof shall not be entitled to payment until the next following Business Day
and shall not be entitled to further interest or other payment in respect of
such delay.

 

(f)            All
reductions in the principal amount of a Debt Security (or one or more
Predecessor Debt Securities) effected by partial payments or installments of
principal made on any Interest Payment Date shall be binding upon all Holders
of such Debt Security and of any Debt Security issued upon the registration of
transfer thereof or in exchange therefor or in lieu thereof, whether or not
such payment is noted on such Debt Security.

 

(g)           In
case a Bearer Debt Security of any series is surrendered in exchange for a
Registered Debt Security of such series after the close of business (at an
office or agency of one of the Paying Agents for such series) on any Regular
Record Date and before the opening of business (at such office or agency) on
the next succeeding Interest Payment Date, such Bearer Debt Security shall be
surrendered without the coupon relating to such Interest Payment Date and
interest will not be payable on such Interest Payment Date in respect of the
Registered Debt Security issued in exchange for such Bearer Debt Security, but
will be payable only to the Holder of such coupon when due in accordance with
the provisions of this Indenture.

 

36

 

(h)           Any
interest on any Debt Security of any series that is payable but is not
punctually paid or duly provided for on any Interest Payment Date for such
series (herein called “Defaulted Interest”) shall, if such Debt Security
is a Registered Debt Security, forthwith cease to be payable to the registered
Holder on the relevant Regular Record Date by virtue of his having been such a
registered Holder, and such Defaulted Interest may be paid by the Company at
its election in each case, as provided in clause (i) or (ii) below:

 

(i)            The Company may elect to make
payment of any Defaulted Interest to the Persons in whose names such Registered
Notes are registered at the close of business on a Special Record Date (the “Special
Record Date”) for the payment of such Defaulted Interest, which shall be
fixed in the following manner.  The
Company shall notify the Trustee in writing of the amount of Defaulted Interest
proposed to be paid on each such Registered Debt Security and the date of the
proposed payment, and at the same time the Company shall deposit with the
Trustee an amount of money equal to the aggregate amount proposed to be paid in
respect of such Defaulted Interest or shall make arrangements satisfactory to
the Trustee for such deposit prior to the date of the proposed payment, such
money when deposited to be held in trust for the benefit of the Persons entitled
to such Defaulted Interest as in this clause provided.  Thereupon the Trustee shall fix a Special
Record Date for the payment of such Defaulted Interest which shall be not more
than 15 days and not less than ten days prior to the date of the proposed payment
and not less than ten days after the receipt by the Trustee of the notice of
the proposed payment.  The Trustee shall
promptly notify the Company of such Special Record Date and, in the name and at
the expense of the Company, shall cause notice of the proposed payment of such
Defaulted Interest and the Special Record Date therefor to be mailed,
first-class postage prepaid, to the Holders of such Registered Debt Securities
at their addresses as they appear in the Debt Security Register, not less than 10
days prior to such Special Record Date. 
Notice of the proposed payment of such Defaulted Interest and the
Special Record Date therefor having been mailed as aforesaid, such Defaulted
Interest shall be paid to the Persons in whose names such Registered Debt
Securities are registered at the close of business on such Special Record Date
and shall no longer be payable pursuant to the following clause (ii).

 

(ii)           The Company may make payment of any
Defaulted Interest on any Registered Debt Security in any other lawful manner
not inconsistent with the requirements of any securities exchange on which such
Registered Debt Securities may be listed, and upon such notice as may be
required by such exchange, if, after notice given by the Company to the Trustee
of the proposed payment pursuant to this clause, such manner of payment shall
be deemed practicable by the Trustee in its sole discretion.

 

(i)            Any
Defaulted Interest payable in respect of Bearer Debt Securities shall be
payable pursuant to such procedures as may be satisfactory to the Trustee in
its sole discretion and notice of the payment date therefor shall be given by
the Trustee, in the name and at the expense of the Company, in the manner
provided in Section 12.4 not more than 25 days and not less than 20 days prior
to the date of the proposed payment.

 

37

 

(j)            Subject
to the foregoing provisions of this Section 3.7, each Debt Security delivered
under this Indenture upon transfer of or in exchange for or in lieu of any
other Debt Security shall carry the rights to interest accrued and unpaid, and
to accrue, that were carried by such other Debt Security.

 

SECTION 3.8  Computation of Interest.  Interest on the Debt Securities of each
series shall be computed on the basis of a 360-day year consisting of
12 months of 30 days each and, in the case of an incomplete month,
the number of days actually elapsed.

 

SECTION 3.9  Registration of Transfer and Exchange.  (a) 
The transfer of any Registered Debt Securities will be registrable at
the Corporate Trust Office of the Trustee in The City of New York, at the main
office of the paying agent in Buenos Aires, Argentina and, subject to any
fiscal or other laws and regulations applicable thereto, at the specified
offices of any other Transfer Agent appointed by the Company for such
purposes.  Subject to any applicable laws
and such reasonable regulations as it may prescribe, the Registrar shall keep
the Debt Security Register for each series of Registered Debt Securities at its
registered offices in Buenos Aires, Argentina, currently located at the address
set forth in Section 12.4(b) hereof, for the registration of ownership,
exchange, and transfer of the Registered Debt Securities of such series.  The Co-Registrar shall also maintain a record
of all registrations of ownership, exchange and transfer of Registered Debt
Securities of each series.  The
Co-Registrar shall give prompt notice to the Registrar and the Registrar shall
likewise give prompt notice to the Co-Registrar of any registration of
ownership, exchange or transfer of Registered Debt Securities.  Included in the books and records for the
Registered Debt Securities shall be notations as to whether such Registered
Debt Securities have been paid, exchanged or transferred and canceled or lost,
stolen, mutilated or destroyed and whether such Registered Debt Securities have
been replaced.  In the case of the
replacement of any of the Registered Debt Securities, the Registrar and the
Co-Registrar shall keep a record of the Registered Debt Security so replaced
and the Registered Debt Security issued in replacement thereof.  In the case of the cancellation of any of the
Registered Debt Securities, the Registrar and the Co-Registrar shall keep a
record of the Registered Debt Security so canceled and the date on which such
Debt Security was canceled.  The costs
and expenses of effecting any exchange or registration of transfer except for
the expense of delivery by other than regular mail (if any) and (except for the
payment of a sum sufficient to cover any tax or other governmental charges or
insurance charges that may be imposed with respect thereto, which may be
required by the Trustee) shall be borne by the Company.

 

When Registered Debt Securities of any series are
presented to the Registrar or the Co-Registrar with a request to register a
transfer or to exchange them for an equal principal amount of Registered Debt
Securities of the same series of other denominations, the Registrar shall
register the transfer or make the exchange if its requirements for such
transactions are met.  To permit
registrations of transfers and exchanges, the Company shall execute and the
Trustee shall authenticate and deliver, in the name of the designated transferee
or transferees, one or more new Registered Debt Securities of the same series,
of any authorized denominations and of a like aggregate principal amount, at
the Registrar’s request.  No service
charge shall be made for any registration of transfer or exchange of Registered
Debt Securities (except as otherwise expressly permitted herein), but the
Trustee may require payment of a sum sufficient to cover any transfer tax or
similar governmental charge payable in connection with any such registration of
transfer or exchange of Registered Debt Securities (other than any such
transfer tax or similar

 

38

 

governmental
charge payable upon exchanges pursuant to Sections 3.6(a), 9.6 or 13.4
hereof) not involving a transfer.

 

All Bearer Debt Securities of a series (other than
Global Bearer Debt Securities) surrendered for exchange for other Debt
Securities of such series shall have attached thereto all unmatured coupons
appertaining thereto.  Unless otherwise
provided pursuant to Section 3.1, Bearer Debt Securities shall be dated the
date of initial issuance of Debt Securities of such series.

 

Each Debt Security authenticated and delivered upon
any transfer or exchange for or in lieu of the whole or any part of any Debt
Security shall carry all the rights, if any, to interest accrued and unpaid and
to accrue which were carried by the whole or such part of such Debt
Security.  Each new Debt Security, if a
Registered Debt Security, shall be so dated, and, if a Bearer Debt Security not
in global form, shall have attached thereto such coupons, so that neither gain
nor loss of interest shall result from such transfer or exchange.

 

Bearer Debt Securities may not be issued in exchange
for Registered Debt Securities.

 

If (but only if) expressly permitted in or pursuant to
the applicable Board Resolution (subject to Section 3.2), set forth in the
applicable Officers’ Certificate, or in any indenture supplemental hereto,
delivered as contemplated by Section 3.1, at the option of the Holder,
Bearer Debt Securities of any series may be exchanged for Registered Debt
Securities of the same series of any authorized denomination and of a like
aggregate principal amount and tenor, upon surrender of the Bearer Debt
Securities to be exchanged at an office or agency located outside the United
States specified in the applicable Board Resolution, Officers’ Certificate or
indenture supplemental hereto, with all unmatured coupons and all matured
coupons in default thereto appertaining. 
If the Holder of a Bearer Debt Security is unable to produce any such
unmatured coupon or coupons or matured coupon or coupons in default, any such
permitted exchange may be effected if the Bearer Debt Securities are
accompanied by payment in funds acceptable to the Company in an amount equal to
the face amount of such missing coupon or coupons, or the surrender of such
missing coupon or coupons may be waived by the Company and the Trustee if there
is furnished to them such security or indemnity as they may require to save
each of them and any Paying Agent harmless. 
If thereafter the Holder of such Debt Security shall surrender to any
Paying Agent any such missing coupon in respect of which such a payment shall
have been made, such Holder shall be entitled to receive the amount of such
payment; provided, however, that, except as
otherwise provided in Section 4.2, interest represented by coupons shall
be payable only upon presentation and surrender of those coupons at an office
or agency located outside the United States specified in the applicable Board Resolution,
Officers’ Certificate or indenture supplemental hereto.  Notwithstanding the foregoing, in case a
Bearer Debt Security of any series is surrendered at any such office or agency
in a permitted exchange for a Registered Debt Security of the same series and
like tenor after the close of business at such office or agency on any Regular
Record Date and before the opening of business at such office or agency on the
relevant Interest Payment Date, payment of interest on such Interest Payment
Date will be subject to compliance with Section 3.7(g).

 

39

 

Whenever any Debt Securities are so surrendered for
exchange, the Company shall execute, and the Trustee shall authenticate and
deliver, the Debt Securities which the Holder making the exchange is entitled
to receive.

 

All Debt Securities issued upon any registration or
transfer or exchange of Debt Securities shall be the valid obligations of the
Company evidencing the same indebtedness, and entitled to the same benefits
under this Indenture, as the Debt Securities surrendered upon such registration
of transfer or exchange.

 

In the event that the Company delivers to the Trustee
a copy of an Officers’ Certificate certifying that a registration statement
under the Securities Act with respect to a registered exchange offer has been
declared effective by the Commission and that the Company has offered
Registered Debt Securities to the Holders in accordance with any registered
exchange offer, the Trustee shall exchange, subject to Section 3.6(b) and
upon request of any Holder, such Holder’s Debt Securities for Registered Debt
Securities upon the terms set forth in the registered exchange offer.

 

The Company shall not be required:  (i) to issue, register the transfer of
or exchange any Debt Security during a period beginning at the opening of
business 15 days before the day of the mailing of a notice of redemption
of Debt Securities selected for redemption under Section 13.4 and ending
at the close of business on (A) if Debt Securities of the series are
issuable only as Registered Debt Securities, the day of the mailing of the
relevant notice of redemption, (B) if Debt Securities of the series are
issuable as Bearer Debt Securities, the day of the first publication of the
relevant notice of redemption, or (C) if Debt Securities of the series are also
issuable as Registered Debt Securities and there is no publication, the mailing
of the relevant notice of redemption; or (ii) to register the transfer of
or exchange any Debt Security so selected for redemption in whole or in part,
except the unredeemed portion of any Debt Security being redeemed in part; or
(iii) to exchange any Bearer Debt Security so selected for redemption
except that such a Bearer Debt Security may be exchanged for a Registered Debt
Security of the same series and of like tenor and principal amount; provided that such Registered Debt Security shall be
simultaneously surrendered for redemption, or to issue, register the transfer
of or exchange any Debt Security which has been surrendered for repayment at
the option of the Holder, except the portion, if any, of such Debt Security not
to be so repaid.

 

(b)           Notwithstanding
any provision to the contrary herein, so long as a Global Registered Debt
Security remains outstanding and is held by or on behalf of the Depositary,
transfers of a Global Registered Debt Security, in whole or in part, or of any
beneficial interest therein, shall only be made in accordance with
Section 3.6(b) and this Section 3.9; provided,
however, that beneficial interest in a Global Registered Debt
Security may be transferred to persons who take delivery thereof in the form of
a beneficial interest in the same Global Registered Debt Security in accordance
with the transfer restrictions set forth in the restricted securities legend on
such Debt Security.

 

(i)            Except
for transfers or exchanges of Restricted Global Registered Debt Securities and
Regulation S Global Registered Debt Securities made in accordance with any of
clauses (ii), (iii) and (iv) of this Section 3.9(b), transfers of any
such Global Registered Debt Security shall be limited to transfers of such
Global Registered Debt

 

40

 

Security in whole, but not in part, to nominees of the
Depositary or to a successor of the Depositary or such successor’s nominee.

 

(ii)           Restricted
Global Registered Debt Security to Regulation S Global Registered Debt Security.  If an owner of a beneficial interest in a
Restricted Global Registered Debt Security deposited with the Depositary or the
Trustee as custodian for the Depositary wishes at any time to transfer its
interest in such Restricted Global Registered Debt Security to a person who is
required to take delivery thereof in the form of an interest in a Regulation S
Global Registered Debt Security, such owner may, subject to the rules and
procedures of the Depositary, exchange or cause the exchange of such interest
for an equivalent beneficial interest in the Regulation S Global Registered
Debt Security.  Upon receipt by the
Trustee, as Co-Registrar, at its office in The City of New York of
(1) instructions given in accordance with the Depositary’s procedures from
a Participant directing the Trustee, as Co-Registrar, to credit or cause to be
credited a beneficial interest in the Regulation S Global Registered Debt
Security in an amount equal to the beneficial interest in the Restricted Global
Registered Debt Security to be exchanged, (2) a written order given in
accordance with the Depositary’s procedures containing information regarding
the participant account of the Depositary and the Euroclear or Clearstream,
Luxembourg account to be credited with such increase and (3) a certificate
in the form of Exhibit C attached hereto given by the Holder of such beneficial
interest stating that the transfer of such interest has been made in compliance
with the transfer restrictions applicable to the Global Debt Securities and
(A) pursuant to and in accordance with Regulation S under the
Securities Act or (B) that the Debt Security being transferred is not a “restricted
security” as defined in Rule 144 under the Securities Act, then the
Trustee, as Co-Registrar, shall instruct the Depositary to reduce or cause to
be reduced the principal amount at maturity of the Restricted Global Registered
Debt Security and to increase or cause to be increased the principal amount at
maturity of the Regulation S Global Registered Debt Security by the aggregate
principal amount at maturity of the beneficial interest in the Restricted Global
Registered Debt Security to be exchanged, to credit or cause to be credited to
the account of the person specified in such instructions (who shall be an agent
member of Euroclear or Clearstream, Luxembourg, or both, as the case may be) a
beneficial interest in the Regulation S Global Registered Debt Security equal
to the reduction in the principal amount at maturity of the Restricted Global
Registered Debt Security, and to debit or cause to be debited from the account
of the person making such exchange or transfer the beneficial interest in the
Restricted Global Registered Debt Security that is being exchanged or
transferred.

 

(iii)          Regulation
S Global Registered Debt Security to Restricted Global Registered Debt Security.  If an owner of a beneficial interest in a
Regulation S Global Registered Debt Security deposited with the Depositary or
the Trustee as custodian for the Depositary wishes at any time to transfer its
interest in such Regulation S Global Registered Debt Security to a person who
is required to take delivery thereof in the form of an interest in a Restricted
Global Registered Debt Security, such owner may, subject to the rules and
procedures of the Depositary, exchange or cause the exchange of such interest
for an equivalent beneficial interest in the Restricted Global Registered Debt
Security.  Upon receipt by the Trustee,
as Co-Registrar, at its office in The City of New York

 

41

 

of (1) instructions given in accordance with the
Depositary’s procedures from a Participant, directing the Trustee, as
Co-Registrar, to credit or cause to be credited a beneficial interest in the
Restricted Global Registered Debt Security in an amount equal to the beneficial
interest in the Regulation S Global Registered Debt Security to be exchanged,
(2) a written order given in accordance with the Depositary’s procedures
containing information regarding the participant account of the Depositary and
the Euroclear or Clearstream, Luxembourg accounts to be debited and (3) a
certificate in the form of Exhibit D attached hereto given by the Holder
of such beneficial interest stating that the person transferring such interest
in the Regulation S Global Registered Debt Security reasonably believes that
the person acquiring such interest in the Restricted Global Registered Debt
Security is a qualified institutional buyer (as defined in Rule 144A under
the Securities Act) and is obtaining such beneficial interest in a transaction
meeting the requirements of Rule 144A under the Securities Act, the
Trustee, as Co-Registrar, shall instruct the Depositary to reduce or cause to
be reduced such Regulation S Global Registered Debt Security by the aggregate
principal amount of the beneficial interest in Regulation S Global Registered
Debt Security to be transferred, and the Trustee, as Co-Registrar, shall
instruct the Depositary concurrently with such reduction, to increase or
reflect on its records an increase of the principal amount of the Restricted
Global Registered Debt Security by the aggregate principal amount of the
beneficial interest in the Regulation S Global Registered Debt Security to be
so transferred, and to credit or cause to be credited to the account of the
person specified in such instructions a beneficial interest in the Restricted
Global Registered Debt Security equal to the reduction in the principal amount
of the Regulation S Global Registered Debt Security.

 

(iv)          Restricted
Global Registered Debt Security or Regulation S Global Registered Debt Security
to Restricted Certificated Debt Security. 
If an owner of a beneficial interest in a Restricted Global Registered
Debt Security or Regulation S Global Registered Debt Security deposited with
the Depositary or the Trustee as custodian for the Depositary wishes at any
time to transfer its interest in such Restricted Global Registered Debt
Security or Regulation S Global Registered Debt Security to an Institutional
Accredited Investor, such owner may, subject to the rules and procedures of
Euroclear or Clearstream, Luxembourg, if applicable, and the Depositary, cause
the exchange of such interest for one or more Restricted Certificated Debt
Securities of any authorized denomination or denominations and of the same
aggregate principal amount at maturity. 
Upon receipt by the Trustee, as Co-Registrar, at its office in The City
of New York of (1) instructions from (x) the Company directing the
Trustee, as Co-Registrar, to authenticate and (y) Euroclear or
Clearstream, Luxembourg, if applicable, and the Depositary directing the
Trustee, as Co-Registrar, to deliver, one or more Restricted Certificated Debt
Securities of the same aggregate principal amount at maturity as the beneficial
interest in the Restricted Global Registered Debt Security or Regulation S
Global Registered Debt Security to be exchanged, such instructions to contain
the name or names of the designated transferee or transferees, the authorized
denomination or denominations of the Restricted Certificated Debt Securities to
be so issued and appropriate delivery instructions, (2) a certificate in
the form of Exhibit E-I attached hereto given by the Holder of such
beneficial interest and stating that the person transferring such interest in
such Restricted Global Registered Debt Security or

 

42

 

Regulation S Global Registered Debt Security
reasonably believes that the person acquiring the Restricted Certificated Debt
Securities for which such interest is being exchanged is an Institutional
Accredited Investor and is acquiring such Restricted Certificated Debt
Securities having an aggregate principal amount of not less than U.S.$200,000
for its own account or for one or more accounts as to which the transferee
exercises sole investment discretion, (3) a certificate in the form of
Exhibit E-II attached hereto given by the person acquiring the
Restricted Certificated Debt Securities for which such interest is being
exchanged, to the effect set forth therein, and (4) such other
certifications, legal opinions or other information as the Company or the
Trustee may reasonably require to confirm that such transfer is being made
pursuant to an exemption from, or in a transaction not subject to, the
registration requirements of the Securities Act, then Euroclear or Clearstream,
Luxembourg, if applicable, or the Trustee, as Co-Registrar, as the case may be,
will instruct the Depositary to reduce or cause to be reduced the principal
amount of such Restricted Global Registered Debt Security or Regulation S
Global Registered Debt Security by the aggregate principal amount at maturity
of the beneficial interest therein to be exchanged and to debit or cause to be
debited from the account of the person making such transfer the beneficial
interest in the Restricted Global Registered Debt Security or Regulation S
Global Registered Debt Security that is being transferred, and concurrently
with such reduction and debit the Company shall execute, and the Trustee, as
Co-Registrar, shall authenticate and deliver, one or more Restricted Certificated
Debt Securities of the same aggregate principal amount at maturity in
accordance with the instructions referred to above.

 

(v)           Restricted
Certificated Debt Securities to Restricted Certificated Debt Securities.  If a Holder of a Restricted Certificated Debt
Security wishes at any time to transfer such Restricted Certificated Debt
Security to a person who is required to take delivery thereof in the form of a
Restricted Certificated Debt Security, such Holder may, subject to the
restrictions on transfer set forth herein and in such Restricted Certificated
Debt Security, cause the exchange of such Restricted Certificated Debt Security
for one or more Restricted Certificated Debt Securities of any authorized
denomination or denominations and of the same aggregate principal amount at
maturity.  Upon receipt by the Trustee,
as Co-Registrar, at its office in The City of New York of (1) such
Restricted Certificated Debt Security, duly endorsed as provided herein, (2) instructions
from such Holder directing the Trustee, as Co-Registrar, to authenticate and
deliver one or more Restricted Certificated Debt Securities of the same
aggregate principal amount at maturity as the Restricted Certificated Debt
Security to be exchanged, such instructions to contain the name or names of the
designated transferee or transferees, the authorized denomination or
denominations of the Restricted Certificated Debt Securities to be so issued
and appropriate delivery instructions, (3) a certificate in the form of
Exhibit E-I attached hereto from the Holder of the Restricted
Certificated Debt Security to be exchanged, (4) a certificate in the form
of Exhibit E-II attached hereto given by the person acquiring the
Restricted Certificated Debt Securities for which such interest is being
exchanged, to the effect set forth therein, and (5) such other
certifications, legal opinions or other information as the Company may
reasonably require to confirm that such transfer is being made pursuant to an
exemption from, or in a transaction not subject to, the registration
requirements of the Securities Act, then the Trustee, as Co-Registrar, shall
cancel or cause to be cancelled such Restricted Certificated Debt Security and

 

43

 

concurrently therewith, the Company shall execute, and
the Trustee shall authenticate and deliver, one or more Restricted Certificated
Debt Securities of the same aggregate principal amount at maturity, in
accordance with the instructions referred to above.

 

(vi)          Restricted
Certificated Debt Security to Restricted Global Registered Debt Security.  If the Holder of a Restricted Certificated
Debt Security wishes at any time to transfer such Restricted Certificated Debt
Security to a qualified institutional buyer pursuant to Rule 144A under
the Securities Act who is required to take delivery thereof in the form of an
interest in a Restricted Global Registered Debt Security, such Holder may,
subject to the rules and procedures of the Depositary, exchange or cause the
exchange of such Restricted Certificated Debt Security for an equivalent
beneficial interest in the Restricted Global Registered Debt Security.  Upon receipt by the Trustee, as Co-Registrar,
at its office in The City of New York of (1) such Restricted Certificated
Debt Security, duly endorsed as provided herein, (2) instructions from
such Holder directing the Trustee, as Co-Registrar, to credit or cause to be
credited a beneficial interest in the Restricted Global Registered Debt
Security in an amount equal to the principal amount of the Restricted
Certificated Debt Security to be exchanged, (3) a written order given in
accordance with the Depositary’s procedures containing information regarding
the Participant account with the Depositary to be credited with such increase
and (4) a certificate in the form of Exhibit D attached hereto given
by the Holder of such Restricted Certificated Debt Security stating that the
person transferring such Restricted Certificated Debt Security reasonably
believes that the person acquiring such interest in the Restricted Global
Registered Debt Security is a qualified institutional buyer (as defined in
Rule 144A under the Securities Act) and is obtaining such beneficial
interest in a transaction meeting the requirements of Rule 144A under the
Securities Act, the Trustee, as Co-Registrar, shall cancel or cause to be
canceled such Restricted Certificated Debt Security and shall instruct the
Depositary concurrently to increase or reflect on its records an increase of
the principal amount of the Restricted Global Registered Debt Security by the
principal amount of the Restricted Certificated Debt Security to be exchanged
and to credit or cause to be credited to the account of the person specified in
such instructions a beneficial interest in the Restricted Global Registered
Debt Security equal to the principal amount of the Restricted Certificated Debt
Security so canceled.

 

(vii)         Restricted
Certificated Debt Security to Regulation S Global Registered Debt Security.  If a Holder of a Restricted Certificated Debt
Security wishes at any time to transfer such Restricted Certificated Debt
Security to a person who is required to take delivery thereof in the form of an
interest in the Regulation S Global Registered Debt Security, such Holder may,
subject to the rules and procedures of the Depositary exchange or cause the
exchange of such interest for an equivalent beneficial interest in the
Regulation S Global Registered Debt Security. 
Upon receipt by the Trustee, as Co-Registrar, at its office in The City
of New York of (1) such Restricted Certificated Debt Security, duly
endorsed as provided herein, (2) instructions given in accordance with the
Depositary’s procedures from a Participant directing the Trustee to credit or
cause to be credited a beneficial interest in the Regulation S Global
Registered Debt Security in an amount equal to the aggregate principal amount
of the Debt Security to be exchanged, (3) a written order given in
accordance with the Depositary’s procedures containing

 

44

 

information regarding the Participant account of the
Depositary and, in the case of transfer pursuant to and in accordance with
Regulation S under the Securities Act, the Euroclear or Clearstream,
Luxembourg account, as the case may be, to be credited with such increase and
the name of such account and (4) a certificate in the form of
Exhibit C attached hereto given by the Holder of such Restricted
Certificated Debt Security stating that the transfer of such Debt Security has
been made in compliance with the transfer restrictions applicable to the Debt
Securities and (A) pursuant to and in accordance with Regulation S
under the Securities Act or (B) that the Debt Security being transferred
is not a “restricted security” as defined in Rule 144 under the Securities
Act, then the Trustee, as Co-Registrar, shall, upon surrender of such Debt
Security for transfer, record such transfer on its records, instruct the
Depositary, concurrently with such transfer, to increase or reflect on its records
an increase of the principal amount of the Regulation S Global Registered Debt
Security by the aggregate principal amount of the Restricted Certificated Debt
Security to be so transferred, and to credit or cause to be credited to the
account of the person specified in such instructions (who shall be an agent
member of Euroclear or Clearstream, Luxembourg, or both, as the case may be) a
beneficial interest in the Regulation S Global Registered Debt Security equal
to the aggregate principal amount of the Restricted Certificated Debt Security
so transferred and, if applicable, authenticate and deliver a new Restricted
Certificated Debt Security to the transferor equal to the aggregate principal
amount of the Restricted Certificated Debt Security retained by such
transferor.

 

(viii)        Other
Exchanges.  In the event that a
Restricted Global Registered Debt Security or a Regulation S Global
Registered Debt Security is exchanged for Certificated Debt Securities pursuant
to Section 3.6(b), prior to the consummation of a registered exchange
offer or the effectiveness of a shelf registration statement with respect to
such Debt Securities, such Debt Securities may be exchanged only in accordance
with such procedures as are substantially consistent with the provisions of
clauses (ii) through (vii) above (including the certification
requirements intended to ensure that such transfers comply with Rule 144A
or Regulation S under the Securities Act, as the case may be) and such
other procedures as may from time to time be adopted by the Company.

 

(c)           Except
in connection with a transfer of Restricted Global Registered Debt Securities
or Regulation S Global Registered Debt Securities pursuant to an effective
shelf registration statement, in which case the restricted securities legend
shall be removed from such Restricted Global Registered Debt Securities or
Regulation S Global Registered Debt Securities so transferred at the request of
the Holder, if Restricted Global Registered Debt Securities or Regulation S
Global Registered Debt Securities are issued upon the transfer, exchange or
replacement of Restricted Global Registered Debt Securities or Regulation S
Global Registered Debt Securities bearing the restricted securities legend set
for in Exhibit A hereto, or if a request is made to remove such restricted
securities legend on Restricted Global Registered Debt Securities or Regulation
S Global Registered Debt Securities, the Restricted Global Registered Debt
Securities or Regulation S Global Registered Debt Securities so issued shall
bear the restricted securities legend, or the restricted securities legend
shall not be removed, as the case may be, unless there is delivered to the
Company such satisfactory evidence, which may include an opinion of counsel
licensed to practice law in the State of New York, as may be reasonably
required by the Company, that neither the legend nor the restrictions on
transfer set forth therein

 

45

 

are required to ensure
that transfers thereof will not violate the registration and prospectus
delivery requirements of the Securities Act. 
Upon provision of such satisfactory evidence, the Trustee, at the
direction of the Company, shall authenticate and deliver Restricted Global
Registered Debt Securities or Regulation S Global Registered Debt Securities
that do not bear the legend.

 

(d)           The
Trustee shall have no responsibility for any actions taken or not taken by the
Depositary.

 

SECTION 3.10  Mutilated, Defaced, Destroyed, Lost and
Stolen Debt Securities.  If any
mutilated or defaced Debt Security or any Debt Security with a mutilated or
defaced coupon appertaining to it is surrendered to the Trustee, the Company
shall execute and the Trustee shall authenticate and deliver in exchange
therefor a new Debt Security of the same series and of like tenor (including
the same date of issuance) and equal principal amount, registered in the same
manner, dated the date of its authentication and bearing interest from the date
to which interest has been paid on such Debt Security, and bearing a number not
contemporaneously outstanding, with coupons corresponding to the coupons, if
any, appertaining to the surrendered Debt Security, in exchange and
substitution for such Debt Security (upon surrender and cancellation thereof)
or in lieu of and substitution for such Debt Security.

 

If there shall be delivered to the Company and the
Trustee (i) evidence to their satisfaction of the destruction, loss or
theft of any Debt Security and (ii) such security or indemnity as may be
required by them to save each of them and any agent of either of them harmless,
then, in the absence of notice to the Company or the Trustee that such Debt
Security has been acquired by a protected purchaser, the Company shall execute and upon its request
the Trustee shall authenticate and deliver, in lieu of any such destroyed, lost
or stolen Debt Security or in exchange for the Debt Security for which a
destroyed, lost or stolen coupon appertains, a new Debt Security of the same
series and like tenor and principal amount and bearing a number not
contemporaneously outstanding.

 

If any Bearer Debt Security or coupon shall at any
time be lost, stolen or destroyed in such a way as to become unidentifiable,
the applicant seeking replacement of the Bearer Debt Security or coupon must
execute a notarized certificate providing, among other things, the identity of
the applicant, a description of the Bearer Debt Security or coupon, the manner
in which the Bearer Debt Security or coupon was acquired and, if possible, the
date of acquisition, the date when the last payment was collected and, if lost
or stolen, how such loss or theft took place. 
The applicant must provide such certificate to the Company within 24
hours of its execution.  The Company
shall promptly (within one Business Day of receipt thereof) provide notice
thereof to the Trustee.  Such
notification to the Company shall serve to suspend any rights under the
original Bearer Debt Security or coupon by any other claimant.  The Company shall publicize notice of such
certification in two widely circulated newspapers in Buenos Aires for two
consecutive days.  Any payments due on
such Bearer Debt Security or coupon shall be deposited in an account maintained
for the purpose by the Company in a bank located in the jurisdiction where the
Company is domiciled as designated by the Company and will be made available to
the applicant (net of any expenses associated with publication of notice of
such Bearer Debt Security or coupon) on the first Payment Date in respect of
such Bearer Debt Security or coupon occurring after the expiration of one year
from the date of the certification;

 

46

 

provided that,
if no Debt Securities of the same series as such Bearer Debt Security are
Outstanding, such payments may be made on a date other than a Payment Date.

 

In case any such mutilated, defaced, destroyed, lost
or stolen Debt Security or coupon has become or is about to become due and
payable, the Company in its discretion may, instead of issuing a new Debt
Security, with coupons corresponding to the coupons, if any, appertaining to
such destroyed, lost or stolen Debt Security or to the Debt Security to which
such destroyed, lost or stolen coupon appertains, pay such Debt Security or
coupon, as the case may be.

 

Upon the issuance of any new Debt Security under this
Section, the Company may require the payment of a sum sufficient to cover any
tax or other governmental charge that may be imposed in relation thereto and
any other fees and expenses (including the fees and expenses of the Trustee)
connected therewith.

 

Every new Debt Security of any series with its
coupons, if any, issued pursuant to this Section in lieu of any mutilated,
defaced, destroyed, lost or stolen Debt Security or in exchange for a Debt
Security to which such destroyed, lost or stolen coupon appertains, shall
constitute an original additional contractual obligation of the Company,
whether or not the mutilated, defaced, destroyed, lost or stolen Debt Security
and its coupons, if any, or the destroyed, lost or stolen coupon shall be at
any time enforceable by anyone, and shall be entitled to all the benefits of
this Indenture equally and proportionately with any and all other Debt
Securities of that series and their coupons, if any, duly issued hereunder.

 

The provisions of this Section are exclusive and shall
preclude (to the extent lawful) all other rights and remedies with respect to
the replacement or payment of mutilated, destroyed, lost or stolen Debt
Securities or coupons.

 

SECTION 3.11  Cancellation of Debt Securities;
Destruction Thereof.  All Debt
Securities and coupons surrendered for payment, redemption, registration of
transfer, conversion or exchange if surrendered to the Company or any agent of
the Company shall be delivered to the Trustee for cancellation or, if
surrendered to the Trustee, shall be canceled by it.  No Debt Securities shall be issued in lieu of
or in exchange for any Debt Securities canceled as provided in this Section
except as expressly permitted by any of the provisions of this Indenture.  The Trustee shall deliver canceled Debt
Securities to the Company.  If the
Company shall acquire any of the Debt Securities, such acquisition shall not
operate as a redemption or satisfaction of the indebtedness represented by such
Debt Securities unless and until the same are delivered to the Trustee for
cancellation.  The Company may at any
time surrender to the Trustee for cancellation any Debt Security purchased or
otherwise acquired by the Company in the open market and Debt Securities so
delivered shall be promptly canceled by the Trustee.  All cancelled Debt Securities held by the
Trustee shall be disposed of by the Trustee in accordance with its customary procedures
and upon the Company’s written request certification of their disposal shall be
delivered to the Company unless by Company Order the Company shall direct that
canceled Debt Securities be returned to it.

 

SECTION 3.12  Persons Deemed Owners.  Prior to due presentment of a Registered Debt
Security for registration of transfer, the Company, the Trustee and any agent
of

 

47

 

the Company or the
Trustee may treat the Person in whose name such Registered Debt Security is
registered as the owner of such Debt Security for the purpose of receiving
payment of principal of, premium, if any, and interest and Additional Amounts,
if any, on such Registered Debt Security and for all other purposes whatsoever,
whether or not such Registered Debt Security be overdue, and none of the
Company, the Trustee nor any agent of the Company or the Trustee shall be
affected by notice to the contrary.

 

Title to any Bearer Debt Security and any coupons
appertaining thereto shall pass by delivery. 
The Company, the Trustee and any agent of the Company or the Trustee may
treat the bearer of any Bearer Debt Security and the bearer of any coupon as
the absolute owner of such Bearer Debt Security or coupon for the purpose of
receiving payment thereof or on account thereof and for all other purposes
whatsoever, whether or not such Bearer Debt Security or coupons be overdue, and
none of the Company, the Trustee or any agent of the Company or the Trustee
shall be affected by notice to the contrary.

 

SECTION 3.13  CUSIP, CINS and Common Code Numbers.  The Company in issuing the Debt Securities of
any series may use “CUSIP”, “CINS” or “Common Code” numbers (if then generally
in use), and, if so, the Trustee shall use “CUSIP”, “CINS” or “Common Code”
numbers in notices of redemption as a convenience to Holders; provided that any such notice may state that no
representation is made as to the correctness of such numbers either as printed
on the Debt Securities of such series or as contained in any notice of a
redemption and that reliance may be placed only on the other identification
numbers printed on the Debt Securities of such series, and any such redemption
shall not be affected by any defect in or omission of such numbers.  The Company shall promptly notify the Trustee
in writing of any change in the “CUSIP”, “CINS” or “Common Code” numbers.

 

ARTICLE FOUR

 

COVENANTS

 

SECTION 4.1  Payment of Principal, Premium, if any, and
Interest.  The Company shall duly and
punctually pay the principal of, and interest and premium, if any, on the Debt
Securities of any series, in accordance with the terms of the Debt Securities
of such series and this Indenture. 
Unless otherwise specified as contemplated by Section 3.1 with respect
to any series of Debt Securities, any interest installments due on Bearer Debt
Securities on or before Maturity shall be payable only upon presentation and
surrender of the several coupons for such interest installments as are
evidenced thereby as they severally mature.

 

SECTION 4.2  Maintenance of Office or Agency; Money for
Debt Security Payments to Be Held in Trust. 
If the Debt Securities of a series are issuable only as Registered Debt
Securities, the Company shall maintain in each of Buenos Aires, Argentina and
the Borough of Manhattan, The City of New York an office or agency where any
Registered Debt Securities of such series may be presented or surrendered for
payment, where any Registered Debt Securities of such series may be surrendered
for registration of transfer or exchange and where notices and demands to or upon
the Company in respect of the Registered Debt Securities of such series and
this Indenture may be served.  The
Company shall give prompt written notice

 

48

 

to the Trustee of the
location, and any change in the location, of such office or agency.  If at any time the Company shall fail to
maintain any such required office or agency or shall fail to furnish the
Trustee with the address thereof, such presentations, surrenders, notices and
demands may be made or served at the Corporate Trust Office of the Trustee, and
the Company hereby appoints the Trustee as its agent to receive all such
presentations, surrenders, notices and demands.

 

The Company may also from
time to time designate one or more other offices or agencies (in or outside the
Borough of Manhattan, The City of New York) where the Registered Debt
Securities of one or more series may be presented or surrendered for any or all
such purposes and may from time to time rescind such designations; provided,
however, that no such designation or rescission shall in any manner relieve the
Company of its obligation to maintain an office or agency in each of Buenos
Aires, Argentina and the Borough of Manhattan, The City of New York.  The Company shall give prompt written notice
to the Trustee of any such designation or rescission and of any change in the
location of any such other office or agency.

 

If Debt Securities of a
series are also issuable as Bearer Debt Securities, the Company will maintain (A) in
each of Buenos Aires, Argentina and the Borough of Manhattan, The City of New
York, an office or agency where any Registered Debt Securities of such series
may be presented or surrendered for payment, where any Registered Debt
Securities of such series may be surrendered for registration of transfer,
where Debt Securities of such series may be surrendered for exchange, where
notices and demands to or upon the Company in respect of the Debt Securities of
such series and this Indenture may be served and where Bearer Debt Securities
of such series and related coupons may be presented or surrendered for payment
in the circumstances described in the following paragraph (and not otherwise); (B) subject
to any laws or regulations applicable thereto, in a place of payment specified
for such series which is located outside the United States, an office or agency
where Debt Securities of such series and related coupons may be presented and
surrendered for payment; provided, however, that, if the Debt Securities of
such series are listed on any stock exchange located outside the United States
and such stock exchange shall so require, the Company will maintain a Paying
Agent for the Debt Securities of such series in any required city located
outside the United States so long as the Debt Securities of such series are
listed on such exchange, and (C) subject to any laws or regulations
applicable thereto, in a place of payment specified for such series located
outside the United States an office or agency where any Registered Debt
Securities of such series may be surrendered for registration of transfer,
where Debt Securities of such series may be surrendered for exchange and where
notices and demands to or upon the Company in respect of the Debt Securities of
such series and this Indenture may be served.

 

If the Company shall at
any time act as its own Paying Agent with respect to any series of Debt
Securities, it will, on or before each due date of the principal of (or
premium, if any, on) or interest on any of the Debt Securities of such series,
segregate and hold in trust for the benefit of the Persons entitled thereto a
sum sufficient to pay the principal (or premium, if any) or interest so
becoming due until such sums shall be paid to such Persons or otherwise
disposed of as herein provided and will promptly notify the Trustee of its
action or failure so to act.

 

Whenever the Company
shall have one or more Paying Agents for any series of Debt Securities, it
will, on or before each due date of the principal of (or premium, if any, on)
or

 

49

 

interest on any Debt
Securities of such series, deposit with a Paying Agent a sum sufficient to pay
the principal, premium, if any, or interest so becoming due, such sum to be
held in trust for the benefit of the Persons entitled to such principal,
premium, if any, or interest, and (unless such Paying Agent is the Trustee) the
Company will promptly notify the Trustee of such action or any failure so to
act.

 

The Company will cause
each Paying Agent not appointed hereunder to execute and deliver to the Trustee
an instrument in which such Paying Agent shall agree with the Trustee, subject
to the provisions of this Section, that such Paying Agent will:

 

(1)                                  hold
all sums held by it for the payment of the principal of (and premium, if any,
on) or interest or Additional Amounts, if any, on Debt Securities of one or
more series in trust for the benefit of the Persons entitled thereto until such
sums shall be paid to such Persons or otherwise disposed of as herein provided;

 

(2)                                  give
the Trustee notice of any default by the Company (or any other obligor upon the
Debt Securities of any series) in the making of any payment of principal (and
premium, if any) or interest or Additional Amounts, if any, with respect to the
Debt Securities of any series; and

 

(3)                                  at
any time during the continuance of any such default, upon the written request
of the Trustee, forthwith pay to the Trustee all sums so held in trust by such
Paying Agent with respect to Debt Securities of such series.

 

The Company may at any
time, for the purpose of obtaining the satisfaction and discharge of this
Indenture or for any other purpose, pay, or by Company Order direct any Paying
Agent to pay, to the Trustee all sums held in trust by the Company or such
Paying Agent, such sums to be held by the Trustee upon the same trusts as those
upon which such sums were held by the Company or such Paying Agent; and, upon
such payment by any Paying Agent to the Trustee, such Paying Agent shall be
released from all further liability with respect to such sums.

 

SECTION 4.3  Maintenance of Existence and Properties.  The Company shall, and shall cause each of
its Significant Subsidiaries to, (a) maintain in effect its corporate
existence and all registrations necessary therefor (except as otherwise
permitted by Section 4.17 hereof) and (b) take all actions to
maintain all rights, privileges, titles to property, franchises and the like
necessary in the normal conduct of its business, activities or operations and (c) keep
all its property in good working order or condition with due regard to the age
and condition of such property; provided, however, that this Section 4.3
shall not require the Company or any Significant Subsidiary to maintain any
such right, privilege, title to property or franchise or to preserve the
corporate existence of any Significant Subsidiary, if the Board of Directors or
a shareholders’ meeting, as the case may be, of the Company shall determine
that the maintenance or preservation thereof is no longer necessary in the
conduct of business of the Company and the Subsidiaries, taken as a whole, and
that the non-maintenance or non-preservation thereof is not, and will not be,
adverse in any material respect to the Holders.

 

SECTION 4.4  Payment of Taxes and Other Claims.  The Company shall pay or discharge or cause
to be paid or discharged, before the same shall become delinquent, (a) all

 

50

 

taxes, assessments and
governmental charges levied or imposed upon the Company or any of its
Subsidiaries, and (b) all lawful claims for labor, materials and supplies
which, if unpaid, might by law become a lien upon the Property of the Company
or any of its Subsidiaries; provided, however, that the Company shall 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.

 

SECTION 4.5  Maintenance of Insurance.  The Company shall, and shall cause each of
its Significant Subsidiaries to, maintain insurance in such amounts and
covering such risks as is usually carried by major companies engaged in similar
business and owning and/or operating Properties in the same general areas of
business in which the Company or any such Significant Subsidiary owns and/or
operates its Properties, subject to any applicable laws and regulations of
Argentina.

 

SECTION 4.6  Limitation on Indebtedness.  So long as any of the Debt Securities of any
series are outstanding, the Company will not, and will not permit any of its
Subsidiaries to directly or indirectly Incur any Indebtedness (including
Acquired Indebtedness); provided
that the Company (but not any Subsidiary of the Company) may Incur Indebtedness
(including Acquired Indebtedness) and a Subsidiary of the Company may Incur
Acquired Indebtedness if, after giving effect to the application of the
Incurrence of any such Indebtedness and the receipt and application of the
proceeds therefrom, the ratio of Total Consolidated Indebtedness to Annualized
Pro Forma Consolidated Operating Cash Flow would be less than or equal to 6.5
to 1.0.

 

The foregoing limitations
on the Incurrence of Indebtedness will not apply to:

 

(i)                                     the
Incurrence by the Company of Permitted Indebtedness;

 

(ii)                                  the
Incurrence by any Subsidiary of the Company of Permitted Subsidiary
Indebtedness;

 

(iii)                               the
Incurrence of Indebtedness by the Company (but not any Subsidiary of the
Company) other than Indebtedness described in the foregoing clause (i), which
Indebtedness when added to the then outstanding Indebtedness previously
Incurred under this clause (iii) and the outstanding Indebtedness of
Subsidiaries of the Company previously Incurred under clause (iv) below,
does not exceed, as of the date of determination, U.S.$25 million in aggregate
principal amount; and

 

(iv)                              the
Incurrence of Indebtedness by Subsidiaries of the Company which Indebtedness, (A) when
added to the outstanding Indebtedness of Subsidiaries of the Company previously
Incurred under this clause (iv), does not exceed, as of the date of
determination, U.S.$10 million in aggregate principal amount, and (B) when
added to the outstanding Indebtedness of the Company previously Incurred under
clause (iii) above and the outstanding Indebtedness of Subsidiaries of the
Company previously Incurred under this clause (iv), does not exceed, as of the
date of determination, U.S.$25 million in aggregate principal amount.

 

SECTION 4.7  Limitation on Dividends and Other Payment
Restrictions Affecting Significant Subsidiaries.  So long as any of the Debt Securities of any
series are

 

51

 

outstanding, the Company
will not, and will not permit any Significant Subsidiary to, create or
otherwise cause or suffer to exist or become effective any consensual
encumbrance or consensual restriction of any kind on the ability of any
Significant Subsidiary to (i) pay dividends or make any other
distributions permitted by applicable law to the Company or any Significant
Subsidiary on its Capital Stock or with respect to any other interest or
participation in, or measured by, its profits, (ii) pay any Indebtedness
or other obligation owed to the Company or any other Significant Subsidiary, (iii) make
loans or advances to the Company or any other Significant Subsidiary or (iv) sell,
lease or transfer any of its property or assets to the Company or any other
Significant Subsidiary.

 

The foregoing provisions
shall not restrict (A) in the case of clause (i), (ii), (iii) or
(iv), any such encumbrance or restriction (I) existing under this Indenture and
the initial series of Debt Securities issued under this Indenture; (II)
existing under or by reason of applicable law; (III) existing under any
instrument governing Acquired Indebtedness or Capital Stock of any Person or
the property or assets of such Person acquired by the Company or any
Significant Subsidiary and existing at the time of such acquisition (except to
the extent such Acquired Indebtedness was Incurred in connection with or in
contemplation of such acquisition), which encumbrance or restriction is not
applicable to any Person or the property or assets of any Person other than
such Person or the property or assets of such Person so acquired; (IV) existing
under any agreement or instrument that refinances an Indebtedness or replaces,
renews or amends an agreement or instrument containing an encumbrance or
restriction that is permitted by clauses (I) and (III) above, provided that the terms and conditions of
any such restrictions taken as a whole are not less favorable to the Holders
than those under or pursuant to the Indebtedness being refinanced or the
agreements or instruments being replaced, renewed or amended; or (V) with
respect to a Significant Subsidiary and imposed pursuant to an agreement that
has been entered into for the sale or disposition of all or substantially all
of the Capital Stock of, or property and assets of, such Significant
Subsidiary; or (B), in the case of clause (iv) only, any such encumbrance
or restriction (I) that restricts in a customary manner the subletting,
assignment or transfer of any property or asset subject to a lease or license,
or (II) existing by virtue of any transfer of, agreement to transfer, option or
right with respect to, or Lien on, any property or assets of the Company or any
Significant Subsidiary not otherwise prohibited by this Indenture.  Nothing contained in this Section 4.7
shall prevent the Company or any Significant Subsidiary from (1) creating,
incurring, assuming or suffering to exist any Liens otherwise permitted under Section 4.11
or (2) restricting the sale or other disposition of property or assets of
the Company or any of its Significant Subsidiaries that secure Indebtedness of
the Company or any Significant Subsidiary, subject to compliance with Section 4.13.

 

SECTION 4.8  Limitation on the Issuance and Sale of
Capital Stock of Significant Subsidiaries. 
The Company will not sell, and will not permit any Significant
Subsidiary, directly or indirectly, to issue or sell, any shares of Capital
Stock of a Significant Subsidiary (including options, warrants or other rights
to purchase shares of such Capital Stock) except (i) to the Company or a
Wholly-Owned Subsidiary that, at the time of such sale, is a Significant
Subsidiary, (ii) if, immediately after giving effect to such issuance or
sale, such Significant Subsidiary would no longer constitute a Significant
Subsidiary, (iii) in the case of issuances of Capital Stock by a
Significant Subsidiary if, after giving effect to such issuance, the Company
maintains its percentage ownership of such Significant Subsidiary, (iv) the
issuance to or ownership by directors of directors’ qualifying shares or the
issuance to or ownership by a

 

52

 

Person of Capital Stock
of any Significant Subsidiary, to the extent mandated by applicable law, or (v) the
issuance or transfer of Capital Stock of a Significant Subsidiary to the seller
or transferor of a Cable/Telecommunications Business, provided that after giving effect to any
such issuance or transfer, the Company holds at least 51% of the Capital Stock
(including 51% of the Voting Stock) of any such Significant Subsidiary, and provided further that in the case of
clauses (ii), (iii) and (v) of this Section 4.8, any such
issuance or sale shall comply with Section 4.13

 

SECTION 4.9  Limitation on Issuances of Guarantees by
Subsidiaries.  The Company will not
permit any Subsidiary of the Company, directly or indirectly, to Guarantee any
Indebtedness of the Company (“Guaranteed Indebtedness”), unless (i) such
Subsidiary simultaneously executes and delivers a supplemental indenture to
this Indenture providing for a Guarantee by such Subsidiary (a “Subsidiary
Guarantee”) of payment of the Debt Securities and (ii) such 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 Company or any other Subsidiary of the Company as a
result of any payment by such Subsidiary under its Subsidiary Guarantee; provided that this paragraph shall not be
applicable to any Guarantee of any Subsidiary of the Company that (x) exists at
the time such Person becomes a Subsidiary of the Company and (y) was not
Incurred in connection with, or in contemplation of, such Person becoming a
Subsidiary of the Company.  If the
Guaranteed Indebtedness is pari passu with
the Debt Securities, then the Guarantee of such Guaranteed Indebtedness shall
be pari passu with, or
subordinated to, the Subsidiary Guarantee. 
If the Guaranteed Indebtedness is subordinated to the Debt Securities,
then the Guarantee of such Guaranteed Indebtedness shall be subordinated to the
Subsidiary Guarantee at least to the extent that the Guaranteed Indebtedness is
subordinated to the Debt Securities.

 

Notwithstanding the
foregoing, any Subsidiary Guarantee by a Subsidiary of the Company shall
provide by its terms that it shall be automatically and unconditionally
released and discharged upon (i) any sale, exchange or transfer, to any
Person not an Affiliate of the Company, of all of the Company’s and each of its
Subsidiary’s Capital Stock in, or all or substantially all the assets of, such
Subsidiary (which sale, exchange or transfer is not in contravention of Section 4.13
and is not otherwise prohibited hereby) or (ii) the release or discharge
of the Guarantee which resulted in the creation of such Subsidiary Guarantee,
except a discharge or release by or as a result of payment under such
Guarantee.

 

SECTION 4.10  Limitation on Transactions with
Shareholders and Affiliates.  The
Company will not, and will not permit any Significant Subsidiary to, directly
or indirectly, conduct any business, enter into, renew or extend any
transaction (including, without limitation, the purchase, sale, lease, exchange
or transfer of property or assets, the rendering of any service, or the making
of any payment, loan, advance or guarantee) with, or for the benefit of, any
holder (or any Affiliate of such holder) of 10% or more of the Capital Stock of
the Company or with any Affiliate of the Company or of any Significant
Subsidiary (together, “Related Persons” and each, a “Related Person”),
unless the terms to the Company or such Significant Subsidiary (i) are at
least as favorable to the Company or such Significant Subsidiary as those that
could be obtained at the time of such transaction in arm’s length dealings with
a Person who is not a Related Person, and (ii) in the case of any
transaction (or series of transactions) with a Related Person involving
aggregate payments made on or after the Issue Date in excess of U.S.$10 million
in any fiscal year, shall be approved by a majority of the disinterested
members of the

 

53

 

Board of Directors of the
Company, or if no such disinterested directors exist with respect to such
transaction (or series of transactions), shall be confirmed by an opinion of an
Independent Financial Advisor to be fair, from a financial point of view, to
the Company or such Significant Subsidiary.

 

The foregoing limitation
does not limit, and shall not apply to (i) any transaction between the
Company and any of its Significant Subsidiaries or between Significant
Subsidiaries, (ii) payment of reasonable and customary compensation and
fees to directors of the Company and the Significant Subsidiaries who are not
employees of the Company or any Significant Subsidiary, or (iii) the grant
of stock options or similar rights to acquire Capital Stock (other than
Disqualified Stock) to employees and directors of the Company pursuant to plans
approved by the Board of Directors, provided
that, in the aggregate, the shares of Capital Stock underlying such options or
similar rights issued since the Issue Date (exclusive of any shares of Capital
Stock or similar rights required to be issued by law) shall not exceed 5% of
the outstanding Common Stock of the Company on a fully diluted basis at the
date of determination.

 

SECTION 4.11  Limitation on Liens.  The Company will not, and will not permit any
Subsidiary of the Company to create, incur, assume or suffer to exist any Liens
of any kind (other than Permitted Liens) against or upon any of its property or
assets (including any shares of Capital Stock), now owned or hereafter
acquired, or any proceeds therefrom securing any Indebtedness unless provision
is made directly to secure the Debt Securities equally and ratably by a Lien on
such property, assets or proceeds with (or, if the obligation or liability to
be secured by such Lien is Subordinated Indebtedness, prior to) the obligation
or liability secured by such Lien.

 

SECTION 4.12  Limitations on Sale and Leaseback
Transactions.  The Company will not,
and will not permit any of its Subsidiaries to, directly or indirectly, enter
into, assume, guarantee or otherwise become liable with respect to any Sale and
Leaseback Transaction, unless:  (i) the
net proceeds from such transaction are at least equal to the Fair Market Value
of the property being transferred and (ii) such transaction shall comply
with Section 4.13.

 

SECTION 4.13  Limitation on Asset Sales.  The Company will not, and will not permit any
of its Subsidiaries to make any Asset Sale that would result in a Material
Adverse Effect occurring.

 

SECTION 4.14  Reports to Holders.  The Company covenants to deliver to the
Trustee:

 

(a)                                  (i) annual
consolidated financial statements with a report from a major internationally
recognized independent public accountant with respect to such year within 180
days after the end of the fiscal year and (ii) quarterly consolidated
financial statements within 60 days after the end of each of the first three
fiscal quarters;

 

(b)                                 such
additional information as the Company has filed with any regulatory authority
with jurisdiction over the Company;

 

(c)                                  written
notice of the occurrence of any Default or Event of Default within ten Business
Days of the Company becoming aware of any such Default or Event of Default; and

 

54

 

(d)                                 written
certification, on or before a date not more than 90 days after the end of
each fiscal year, that a review has been conducted of the activities of the
Company and its Subsidiaries, and of the Company’s and its Subsidiaries’
performance under this Indenture, and that the Company has, to the best of
their knowledge, fulfilled all obligations under this Indenture, or, if there
has been a default in the fulfillment of any such obligation, specifying each
such default and the nature and status thereof.

 

Delivery of such reports,
information and documents to the Trustee is for informational purposes only and
the Trustee’s receipt of such shall not constitute constructive notice of any
information contained therein or determinable from information contained
therein, including the Company’s compliance with any of its covenants hereunder
(as to which the Trustee is entitled to rely exclusively on Officers’
Certificates).

 

SECTION 4.15  Compliance with Laws and Other Agreements.  The Company shall, and shall cause each of
its Significant Subsidiaries to, comply with all applicable laws, rules,
regulations, orders and directions of any Governmental Agency having
jurisdiction over it or its business and all covenants and other obligations
contained in any material agreements to which the Company or any Subsidiary is
a party, except where the failure to so comply would not be adverse in any
material respect to the Holders.

 

SECTION 4.16  Maintenance of Books and Records.  The Company shall, and shall cause each of
its Subsidiaries to, maintain books, accounts and records in accordance with
GAAP or generally accepted accounting principles in the jurisdiction where such
Subsidiary is organized.

 

SECTION 4.17  Consolidation, Merger and Sale of Assets.  The Company shall not consolidate with, merge
with or into, or sell, convey, transfer, lease or otherwise dispose of all or
substantially all of its property and assets (as an entirety or substantially
an entirety in one transaction or a series of related transactions) to, any
Person (other than a consolidation or merger with or into a Wholly-Owned
Subsidiary which, at the time of such consolidation or merger, is a Significant
Subsidiary with a positive net worth; provided
that, in connection with any such merger or consolidation, no
consideration (other than Common Stock in the surviving Person or the Company)
shall be issued or distributed to the stockholders of the Company) or permit
any Person to merge with or into the Company unless:  (i) the Company shall be the continuing
Person, or the Person (if other than the Company) formed by such consolidation
or into which the Company is merged or that acquired or leased such property
and assets of the Company shall expressly assume, by a supplemental indenture,
executed and delivered to a Responsible Officer of the Trustee, all of the
obligations of the Company under this Indenture; (ii) immediately after
giving effect to such transaction, no Default or Event of Default shall have
occurred and be continuing; (iii) (A) immediately after giving effect
to such transaction will have Consolidated Net Worth immediately after the
transaction equal to or greater than the Consolidated Net Worth of the Company
immediately preceding the transaction or (B) such transaction will involve
another Person engaged in substantially the same line of business in Argentina;
and (iv) the Company delivers to the Trustee an Officers’ Certificate
(attaching the arithmetic computations to demonstrate compliance with clause
(iii)) and an opinion of Argentine counsel, in each case stating that such
consolidation, merger or transfer and such

 

55

 

supplemental indenture
complies with clause (i) of this provision and that all conditions
precedent provided for herein relating to such transaction have been complied
with.

 

ARTICLE FIVE

 

HOLDERS’ LISTS AND REPORTS

BY THE COMPANY AND THE TRUSTEE

 

SECTION 5.1  Company to Furnish Trustee Information as
to Names and Addresses of Holders. 
The Company covenants and agrees that it shall furnish or cause to be
furnished to the Trustee a list in such form as the Trustee may reasonably
require of the names and addresses of the Holders of any series of Debt Securities:

 

(a)                                  semiannually
and not more than 15 days after each Regular Record Date, as of such
Regular Record Date, and

 

(b)                                 at
such other time as the Trustee may request in writing, within 30 days
after receipt by the Company of any such request as of a date not more than
15 days prior to the time such information is furnished;

 

provided that, if and so long as
the Trustee shall be the Co-Registrar, such list shall not be required to be
furnished.

 

SECTION 5.2  Preservation of Information;
Communications to Holders.  (a)  The
Trustee shall preserve, in as current a form as is reasonably practicable, the
names and addresses of Holders contained in the most recent list furnished to
the Trustee as provided in Section 5.1 and the names and addresses of
Holders received by the Trustee in its capacity as Co-Registrar.  The Trustee may destroy any list furnished to
it as provided in Section 5.1 upon receipt of a new list so furnished.

 

(b)                                 The
rights of Holders of any series of Debt Securities to communicate with other
Holders of such series of Debt Securities with respect to their rights under
this Indenture or under the Debt Securities of such series, and the
corresponding rights and duties of the Trustee, shall be as provided by the
Trust Indenture Act.

 

(c)                                  Every
Holder of Debt Securities or coupons, by receiving and holding the same, agrees
with the Company and the Trustee that neither the Company nor the Trustee nor
any agent of any of them shall be held accountable by reason of any disclosure
of information as to names and addresses of Holders made pursuant to the Trust
Indenture Act.

 

SECTION 5.3  Reports by the Trustee.  (a)  Within 60 days after May 15
of each year commencing with the first May 15 after the first issuance of
Debt Securities of any series, the Trustee shall transmit by mail to all
Holders of Debt Securities of such series (as their names and addresses appear
in the Debt Security Register), as provided in Section 313(c) of the
Trust Indenture Act, a brief report dated as of each such May 15 containing
such information, documents and reports, and such summaries thereof, as
required by Section 313(a) of the Trust Indenture Act.

 

56

 

(b)                                 A
copy of each such report shall, at the time of such transmission to Holders, be
filed by the Trustee with each stock exchange upon which the Debt Securities of
such series are listed, with the Commission and with the Company.  The Company shall promptly notify the Trustee
when any Debt Securities of such series are listed on any stock exchange or
delisted therefrom.

 

(c)                                  Within
30 days after the delivery thereof to the Trustee, the Trustee shall
transmit by mail to all Holders of Debt Securities of such series (as their
names and addresses appear in the Register) copies of all summaries of
information, documents and reports described in Section 4.14.

 

ARTICLE SIX

 

REMEDIES OF THE TRUSTEE

AND HOLDERS IN EVENT OF DEFAULT

 

SECTION 6.1  Event of Default Defined; Acceleration of
Maturity.  “Event of Default”,
wherever used herein with respect to Debt Securities of any series, means any
one of the following events which shall have occurred and be continuing
(whatever the reason for such Event of Default and whether it shall be
voluntary or involuntary or be effected by operation of law or pursuant to any
judgment, decree or order of any court or any order, rule or regulation of
any administrative or governmental body):

 

(a)                                  the
Company shall fail to pay the principal of or premium, if any, on any Debt
Securities of such series when the same shall become due and payable at
maturity, upon acceleration, redemption or otherwise; or

 

(b)                                 the
Company shall fail to pay interest or Additional Amounts, if any, on any of the
Debt Securities of such series when the same shall become due and payable, and
such failure continues for a period of 30 days; or

 

(c)                                  the
Company shall fail to perform or comply with the provisions contained in Section 4.17
of this Indenture; or

 

(d)                                 the
Company shall fail to perform or breach any other covenant or agreement in this
Indenture or under the Debt Securities of such series (other than those
referred to in clauses (a), (b), and (c) above) and such failure
or breach continues for a period of 30 consecutive days after written
notice shall have been given to the Company by the Trustee or to the Company
and the Trustee by the Holders of at least 25% in aggregate principal amount of
the Debt Securities of such series then Outstanding; or

 

(e)                                  there
occurs with respect to any issue or issues of Indebtedness of the Company or
any Significant Subsidiary having an outstanding principal amount of U.S.$5
million or more (or its equivalent in other currencies) in the aggregate for
all such issues of all such Persons, whether such Indebtedness now exists or
shall hereafter be created, of (I) an event of default that has caused
such Indebtedness to become, or the holders thereof to declare such

 

57

 

Indebtedness to be, due
and payable prior to its Stated Maturity and/or (II) the failure to make a
payment of principal when such payment is due and payable; or

 

(f)                                    one
or more final judgments or orders, for the payment of money in excess of U.S.$5
million, either individually or in the aggregate for all such final judgments
or orders, shall be rendered against the Company or any Significant Subsidiary
or any of their respective properties and shall not be paid or discharged, and
there shall have been a period of 60 consecutive days following entry of
the final judgment or order that causes the aggregate amount for all such final
judgments or orders outstanding and not paid or discharged against all such
Persons to exceed U.S.$5 million during which a stay of enforcement of such
final judgments or orders, by reason of a pending appeal or otherwise, shall
not be in effect; or

 

(g)                                 any
government or governmental authority shall have condemned, nationalized,
seized, or otherwise expropriated all or any substantial portion of the assets
or property of the Company or any Significant Subsidiary or the share capital
of the Company or any Significant Subsidiary, or shall have assumed custody or
control of such assets or property or of the business or operations of the
Company or any Significant Subsidiary or of the share capital of the Company or
any Significant Subsidiary, or shall have taken any action that would prevent
the Company or any Significant Subsidiary or its officers from carrying on its
business or operations or a substantial part thereof for a period of longer
than 60 consecutive days and the result of any such action shall
materially prejudice the ability of the Company to perform its obligations
under the Debt Securities of such series and, in each case, the Company shall
have received written notice thereof from the Trustee at the request of any
Holder of a Debt Security of such series as to which such event shall, upon
such notice, constitute an Event of Default; or

 

(h)                                 the
Argentine Government shall declare a general suspension of payment or a
moratorium on the payment of debt of the Company (which does not expressly
exclude the Debt Securities of such series); or

 

(i)                                     the
Company or any Significant Subsidiary (I) is declared by a court of
competent jurisdiction to be insolvent or bankrupt or unable to pay its debts,
(II) commences or consents to the commencement of a case under any applicable
bankruptcy, insolvency or other similar law now or hereafter in effect, (III)
makes a general assignment or an arrangement or composition with or for the
benefit of creditors, (IV) admits in writing its inability to pay its debt
generally as they become due, or (V) takes corporate action in furtherance of
any of the foregoing; or

 

(j)                                     an
order or decree is made or an effective resolution passed for relief against
the Company or a Significant Subsidiary under any applicable bankruptcy law, or
for the winding-up or dissolution of the Company or any Significant Subsidiary
or adjudging the Company or any Significant Subsidiary bankrupt or insolvent
under any applicable bankruptcy law and in each case such order or decree
remains unstayed and in effect for a period of 60 consecutive days, or the
Company or any Significant Subsidiary ceases or threatens to cease to carry on
all or a material part of its business or operations, except for the purpose of
and followed by a reconstruction, amalgamation, reorganization (“concurso preventivo” or “concordato”), merger or consolidation in
the case of a Significant Subsidiary, whereby the undertaking and the assets of
such Significant Subsidiary, or all of the undertaking and assets

 

58

 

relating to the Company’s
direct or indirect shareholding in such Significant Subsidiary, as the case may
be, are transferred to or otherwise vested in the Company or any other
Significant Subsidiary or Subsidiary which as a result of such transfer would
become a Significant Subsidiary; or

 

(k)                                  it
becomes unlawful for the Company to perform or comply with any one or more of
its obligations under any of the Debt Securities of such series or this
Indenture, and such unlawfulness continues for a period of 60 consecutive
days after written notice shall have been given to the Company by the Trustee
or to the Company and the Trustee by the Holders of at least 25% in aggregate
principal amount of the Debt Securities of such series then Outstanding.

 

SECTION 6.2  Acceleration of Maturity; Rescission and
Annulment.  If an Event of Default
(other than an Event of Default specified in paragraph (i) or
paragraph (j) in Section 6.1 hereof that occurs with respect to the
Company) occurs and is continuing, then and in every such case the Trustee or
the Holders of at least 25% in aggregate principal amount of the Debt
Securities of such series at the time Outstanding may, and the Trustee at the
request of such Holders shall, declare the Debt Securities of such series to be
immediately due and payable, by a notice in writing to the Company (and to the
Trustee if given by the Holders (the “Acceleration Notice”)), and upon
any such declaration 100% of the principal amount thereof and any accrued and
unpaid interest thereon shall become immediately due and payable.  In the event of a declaration of acceleration
because an Event of Default set forth in paragraph (e) in Section 6.1
has occurred and is continuing, such declaration of acceleration shall be
automatically rescinded and annulled if the event of default triggering such
Event of Default pursuant to paragraph (e) in Section 6.1 shall
be remedied or cured by the Company and/or the relevant Subsidiaries or waived
by the holders of the relevant Indebtedness within 30 days after the
declaration of acceleration with respect thereto.  If an Event of Default specified in
paragraphs (i) or (j) in Section 6.1 occurs with respect to
the Company, the Debt Securities of such series then Outstanding shall ipso
facto become and be immediately due and payable at 100% of the outstanding
principal amount thereof, plus premium, if any, thereon and accrued and unpaid
interest thereon to the date of such Event of Default, in each case without any
declaration or other act on the part of the Trustee or any Holder.

 

At any time after a
declaration of acceleration with respect to Debt Securities of any series has
been made and before a judgment or decree for payment of the money due has been
obtained by the Trustee as hereinafter in this Section 6.2 provided, a
decision made by the affirmative vote of the Holders of at least a majority in
aggregate principal amount of the Debt Securities of that series at the time
Outstanding may, by written notice to the Company and to the Trustee, rescind
and annul such declaration and its consequences if:

 

(a)                                  the
Company has paid or deposited with the Trustee a sum sufficient to pay:

 

(i)                                     all
overdue interest on all Outstanding Debt Securities of that series (or of all
series, as the case may be) and any related coupons,

 

59

 

(ii)                                  the
principal of, premium, if any, on or Additional Amounts, if any, on any Debt
Securities of that series (or of all series as the case may be) which have
become due otherwise than by such declaration of acceleration and, to the
extent that payment of such interest is lawful, interest thereon at the rate
provided by such Debt Securities,

 

(iii)                               interest upon overdue
interest at the rate provided by such Debt Securities, and

 

(iv)                              all
sums paid or advanced by the Trustee hereunder and the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel and
any other amounts due to the Trustee under Section 7.6 hereof have been
paid in full; and

 

(b)                                 all
existing Events of Default with respect to Debt Securities of that series (or
of all series, as the case may be), other than the non-payment of the principal
of or premium, if any, interest and Additional Amounts, if any, on Debt
Securities of that series (or of all series as the case may be) which have
become due solely by such declaration of acceleration, have been cured or
waived as provided in Section 6.10 hereof; and

 

(c)                                  the
rescission would not conflict with any judgment, decree or order of a court of
competent jurisdiction.

 

No such rescission shall affect any subsequent default
or impair any right consequent thereon.

 

The foregoing provisions
shall be without prejudice to the rights of each individual Holder to initiate
an action against the Company for the payment of any principal, premium, if
any, Additional Amounts and/or interest past due on any Debt Security, as the
case may be.  The right of any individual
Holder to initiate such action against the Company in connection with the Debt
Securities of any series complies with Article 29 of the Negotiable
Obligations Law.

 

SECTION 6.3  Collection of Indebtedness and Suits for
Enforcement by Trustee.  The Company
covenants that if:

 

(a)                                  default
is made in the payment of any interest on any Debt Security and any related
coupon when such interest becomes due and payable and such default continues
for a period of 15 Business Days, or

 

(b)                                 default
is made in the payment of the principal of, premium, if any, on or Additional
Amounts, if any, on any Debt Security at the Maturity thereof,

 

the Company shall, upon demand of the Trustee, pay to
it, for the benefit of the Holders of such Debt Securities and coupons, the
whole amount then due and payable on such Debt Securities and coupons for
principal, premium, if any, and interest and Additional Amounts, if any, and,
to the extent that payment of such interest shall be legally enforceable,
interest on any overdue principal and overdue interest and Additional Amounts,
if any, at the rate provided by the terms of the Debt Securities, and, in
addition thereto, such further amount as shall be sufficient to cover the costs
and expenses of collection, including the reasonable compensation, expenses,

 

60

 

disbursements and advances of the Trustee, its agents
and counsel and any other amounts due to the Trustee under Section 7.6
hereof.

 

If the Company fails to
pay such amounts forthwith upon such demand, the Trustee, in its own name and
as trustee of an express trust, may institute a judicial proceeding for the
collection of the sums so due and unpaid, may prosecute such proceeding to
judgment or final decree and may enforce the same against the Company or any
other obligor upon such Debt Securities and collect the moneys adjudged or
decreed to be payable in the manner provided by law out of the Property of the
Company or any other obligor upon such Debt Securities, wherever situated.

 

No Debt Security which
has been the subject of proceedings by the Holder thereof may be presented to a
Paying Agent or Registrar and Co-Registrar for payment or replacement but in
such circumstances the Company shall make separate arrangements for payment
directly to the Holder of each such Debt Security.  If any Holder, having instituted proceedings
directly against the Company, subsequently disposes of the Debt Securities
forming the subject matter of such proceedings, the cessation of the rights
under the trust occurring upon the institution of such proceedings shall inure
in relation to the purchaser of such Debt Security.  Upon notification by the Company of any such
proceedings, the Trustee shall give notice to the Paying Agents and the
Registrar and Co-Registrar of the serial numbers of those Debt Securities
forming the subject matter of such proceedings and the Paying Agents and
Registrar and Co-Registrar shall make such serial numbers available to any
Holder or potential Holder upon its request.

 

If an Event of Default
with respect to Debt Securities of any series (or all series, as the case may
be) occurs and is continuing, the Trustee may in its discretion proceed to
protect and enforce its rights and the rights of the Holders by such
appropriate judicial proceedings as the Trustee shall deem most effectual to
protect and enforce any such rights, whether for the specific enforcement of
any covenant or agreement in this Indenture or in aid of the exercise of any
power granted herein, or to enforce any other proper remedy.

 

In case of the pendency
of any receivership, insolvency, liquidation, bankruptcy, reorganization,
arrangement, adjustment, composition or other judicial proceeding relative to
the Company or any other obligor upon the Debt Securities or the Property of
the Company or of such other obligor or their creditors, the Trustee
(irrespective of whether the principal of the Debt Securities shall then be due
and payable as therein expressed or by declaration or otherwise and
irrespective of whether the Trustee shall have made any demand on the Company
for the payment of overdue principal, premium, if any, or interest) shall be
entitled and empowered, by intervention in such proceeding or otherwise,

 

(i)                                     to
file and prove a claim for the whole amount of principal, premium, if any, and
interest owing and unpaid in respect of the Debt Securities and to file such
other papers or documents as may be necessary or advisable in order to have the
claims of the Trustee (including any claim for the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel)
and of the Holders allowed in such judicial proceeding, and

 

(ii)                                  to
collect and receive any moneys or other Property payable or deliverable on any
such claims and to distribute the same;

 

61

 

and any custodian, receiver, assignee, trustee,
liquidator, sequestrator or other similar official in any such judicial
proceeding is hereby authorized by each Holder to make such payments to the
Trustee and, in the event that the Trustee shall consent to the making of such
payments directly to the Holders, to pay to the Trustee any amount due it for
the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.6
hereof.

 

Nothing herein contained
shall be deemed to authorize the Trustee to authorize or consent to or accept
or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment
or composition affecting the Debt Securities or the rights of any Holder
thereof or to authorize the Trustee to vote in respect of the claim of any
Holder in any such proceeding.

 

To the extent permitted
by applicable law, all rights of action and claims under this Indenture or the
Debt Securities or coupons may be prosecuted and enforced by the Trustee
without the possession of any of the Debt Securities or coupons or the
production thereof in any proceeding relating thereto, and any such proceeding
instituted by the Trustee shall be brought in its own name and as trustee of an
express trust, and any recovery of judgment shall, after provision for the
payment of the reasonable compensation, expenses, disbursements and advances of
the Trustee, its agents and counsel, be for the ratable benefit of the holders
of the Debt Securities and coupons in respect of which such judgment has been
recovered.

 

SECTION 6.4  Application of Moneys Collected.  Any money collected by the Trustee pursuant
to this Article shall be applied in the following order, at the date or
dates fixed by the Trustee and, in case of the distribution of such money on
account of principal or premium, if any, or interest, upon presentation of the
Debt Securities or coupons, or both, as the case may be, and the notation
thereon of the payment if only partially paid and upon surrender thereof if
fully paid:

 

FIRST:  To the payment of all amounts due the Trustee
under Section 7.6 hereof;

 

SECOND:  To the payment of the amounts then due and
unpaid for principal of, premium, if any, on, interest on and Additional
Amounts, if any, on the Debt Securities and coupons in respect of which or for
the benefit of which such money has been collected, ratably, without preference
or priority of any kind, according to the amounts due and payable on such Debt
Securities and coupons for principal, premium, if any, interest and Additional
Amounts, if any, respectively; and

 

THIRD:  The balance, if any, to the Person or Persons
entitled thereto as instructed by the Company.

 

SECTION 6.5  Restoration of Rights on Abandonment of
Proceedings.  In case the Trustee or
any Holder shall have proceeded to enforce any right under this Indenture and
such proceedings shall have been discontinued or abandoned for any reason, or
shall have been determined adversely to the Trustee or such Holder, then and in
every such case, subject to any determination in such proceeding, the Company,
the Trustee and the Holders of Debt Securities and coupons shall be restored
respectively to their former positions and rights hereunder, and all

 

62

 

rights, remedies and
powers of the Company, the Trustee and the Holders shall continue as though no
such proceedings had been taken.

 

SECTION 6.6  Limitations on Suits by Holders.  Except as provided in Section 6.2
hereof, no Holder of any Debt Security of any series or any related coupons
shall have any right to institute any proceeding, judicial or otherwise, with
respect to this Indenture, or for the appointment of a receiver or trustee, or
for any other remedy hereunder, unless:

 

(a)                                  such
Holder has previously given written notice to the Trustee of a continuing Event
of Default with respect to the Debt Securities of such series;

 

(b)                                 the
Holders of at least 25% in aggregate principal amount at maturity of the Debt
Securities of such series at the time Outstanding shall have made written
request to the Trustee to institute proceedings in respect of such Event of
Default in its own name as Trustee hereunder;

 

(c)                                  such
Holder or Holders have offered to the Trustee indemnity satisfactory to such
Trustee against the costs, expenses and liabilities to be incurred in
compliance with such request;

 

(d)                                 the
Trustee for 60 days after its receipt of such notice, request and offer of
indemnity has failed to institute any such proceeding; and

 

(e)                                  no
direction inconsistent with such written request has been given to the Trustee
during such 60-day period by the Holders of a majority in aggregate principal
amount of the Debt Securities of such series at the time Outstanding;

 

it being understood and intended that no one or more
Holders shall have any right in any manner whatever by virtue of, or by
availing of, any provision of this Indenture to affect, disturb or prejudice
the rights of any other Holders of Debt Securities of the same series, or to
obtain or to seek to obtain priority or preference over any other Holders of
Debt Securities of the same series or to enforce any right under this
Indenture, except in the manner herein provided and for the equal and ratable
benefit of all the Holders of Debt Securities of the same series.

 

SECTION 6.7  Unconditional Right of Holders to Receive
Principal, Premium, if any, Additional Amounts and Interest.  Notwithstanding any other provision to the
contrary in this Indenture (in particular in relation to a Bearer Security),
the Holder of any Debt Security shall have the right, which is absolute and
unconditional, to receive payment of the principal of, premium, if any, on, interest
(subject to Section 3.7) on and Additional Amounts, if any, on such Debt
Security or payment of such coupon on or after the respective Stated Maturities
expressed in such Debt Security or coupon (or, in the case of redemption, on
the Redemption Date) and to institute suit for the enforcement of any such
payment, and such rights shall not be impaired or affected without the consent
of such Holder.

 

SECTION 6.8  Powers and Remedies Cumulative; Delay or
Omission Not Waiver of Default. 
Except as provided in Section 3.10 hereof, no right or remedy
herein conferred upon or reserved to the Trustee or to the Holders is intended
to be exclusive of any other right or remedy, and every right and remedy shall,
to the extent permitted by law, be cumulative and in

 

63

 

addition to every other
right and remedy given hereunder or now or hereafter existing at law or in
equity or otherwise.  The assertion or
employment of any right or remedy hereunder, or otherwise, shall not prevent
the concurrent assertion or employment of any other appropriate right or
remedy.

 

No delay or omission of
the Trustee or of any Holder of any Debt Security or coupon to exercise any
right or remedy accruing upon any Event of Default shall impair any such right
or remedy or shall be construed to be a waiver of any such Event of Default or
an acquiescence therein; and every power and remedy given by this Indenture or
by law to the Trustee or to the Holders may be exercised from time to time, and
as often as shall be deemed expedient, by the Trustee or by the Holders.

 

SECTION 6.9 
Control by Holders.  The
Holders of at least a majority in aggregate principal amount of the Debt
Securities of any series at the time Outstanding may, on behalf of the Holders
of all the Debt Securities of such series, direct the time, method, and place
of conducting any proceeding for any remedy available to the Trustee, or
exercising any trust or power conferred on the Trustee with respect to the Debt
Securities of such series by this Indenture; provided
that such direction shall not be otherwise than in accordance with law and the
provisions of this Indenture and provided further
that (subject to the provisions of Section 7.1 hereof) the Trustee shall
have the right to decline to follow any such direction if (i) the Trustee,
being advised by counsel, shall determine that the action or proceeding so
directed may not lawfully be taken or (ii) the Trustee in good faith by a
Responsible Officer of the Trustee shall determine that the action or
proceeding so directed would involve the Trustee in personal liability or (iii) the
Trustee in good faith by a Responsible Officer of the Trustee shall determine
that the actions or forbearances specified in or pursuant to such direction would
be unduly prejudicial to the interests of Holders so affected not joining in
the giving of said direction, it being understood that (subject to Section 7.1
hereof) the Trustee shall have no duty to ascertain whether or not such actions
or forbearances are unduly prejudicial to such Holders.

 

Nothing in this Indenture
shall impair the right of the Trustee in its discretion to take any action
deemed proper by the Trustee and which is not inconsistent with such direction
or directions by Holders of Debt Securities or coupons.

 

SECTION 6.10  Waiver of Defaults.  Except as specified in Section 6.2
hereof, the Holders of at least a majority in aggregate principal amount of the
Debt Securities of any series at the time Outstanding may, by written notice to
the Company and to the Trustee, on behalf of the Holders of all the Debt
Securities of such series, waive any past or existing Default or Event of
Default hereunder and its consequences if, in addition to certain other
covenants, (i) all existing Events of Default, other than the nonpayment
of the principal of, premium, if any, on, interest on or Additional Amounts, if
any, on Debt Securities of such series that have become due solely by such
declaration of acceleration, have been cured or waived and (ii) the
rescission would not conflict with any judgment, decree or order of a court of
competent jurisdiction; provided, however,
that the unanimous affirmative vote of each Holder of an Outstanding Debt
Security of such series affected thereby shall be required to adopt a valid
decision on:

 

(a)                                  changing
the Stated Maturity of, or failing to pay, the principal of, premium, if any,
on or any installment of interest on any Debt Security of such series, or

 

64

 

reducing the principal
amount thereof or the rate of interest thereon or changing the requirement to
pay Additional Amounts thereon;

 

(b)                                 changing
the place of payment where, or the coin or currency in which, the principal of
or interest or Additional Amounts (if any) on any Debt Security of such series
is payable;

 

(c)                                  impairing
the right to institute suit for the enforcement of any such payment on or after
the Stated Maturity thereof (or, in the case of redemption, on or after the
Redemption Date);

 

(d)                                 reducing
the percentage in principal amount of the Outstanding Debt Securities of such
series, the consent of the Holders of which is required for the adoption of a
resolution or the quorum required to constitute a meeting of Holders at which a
resolution is adopted or the percentage in principal amount of Outstanding Debt
Securities of such series the Holders of which are entitled to request the
calling of a meeting of Holders; or

 

(e)                                  modifying
the percentage in principal amount of the Outstanding Debt Securities of such
series, the consent of the Holders of which is required to waive a past Default
or Event of Default.

 

Except as provided above,
any modifications, amendments or waivers to the terms and conditions of the
Debt Securities of any series shall be conclusive and binding on all Holders of
Debt Securities of such series, whether or not they were present at any
meeting, and whether or not notation of such modifications, amendments or
waivers is made upon the Debt Securities of such series, provided
that any such modification, amendment or waiver was duly passed at a meeting
convened and held in accordance with the Negotiable Obligations Law.

 

Upon any such waiver,
such Default shall cease to exist, and any Event of Default arising therefrom
shall be deemed to have been cured, for every purpose of this Indenture; but no
such waiver shall extend to any subsequent or other default or impair any right
consequent thereon.

 

SECTION 6.11  Trustee to Give Notice of Default, But May Withhold
in Certain Circumstances.  Within
90 days after the occurrence of any Default hereunder with respect to the
Debt Securities of any series (or of all series, as the case may be), the
Trustee shall transmit by mail to all Holders of such series (or of all series,
as the case may be) as their names shall appear on the Debt Security Register,
in the manner and to the extent provided in the Trust Indenture Act Section 313(c),
notice of such Default hereunder known to a Responsible Officer of the Trustee,
unless such Default shall have been cured or waived; provided,
however, that, except in the case of a Default in the payment of the
principal of or premium, if any, interest or Additional Amounts, if any, on any
Debt Security, the Trustee shall be protected in withholding such notice if and
so long as the board of directors, the executive committee or a trust committee
of directors or Responsible Officers of the Trustee in good faith determine
that the withholding of such notice is in the interest of the Holders.

 

SECTION 6.12  Undertaking for Costs.  All parties to this Indenture agree, and each
Holder of any Debt Security by such Holder’s acceptance thereof shall be deemed
to have

 

65

 

agreed, that any court
may in its discretion require, in any suit for the enforcement of any right or
remedy under this Indenture, or in any suit against the Trustee for any action
taken, suffered or omitted by it as Trustee, the filing by any party litigant
in such suit of an undertaking to pay the costs of such suit and that such
court may in its discretion assess reasonable costs, including reasonable
attorneys’ fees and expenses, against any party litigant in such suit, having
due regard to the merits and good faith of the claims or defenses made by such
party litigant; but the provisions of this Section 6.12 shall not apply to
any suit instituted by the Trustee, to any suit instituted by any Holder, or
group of Holders, holding in the aggregate more than 10% in principal amount of
the outstanding Debt Securities of any series, or to any suit instituted by any
Holder for the enforcement of the payment of the principal of or premium, if
any, interest or Additional Amounts, if any, on any Debt Security of any series
on or after its Stated Maturity.

 

SECTION 6.13  Currency Indemnity.  U.S. Dollars is the sole currency of account
and payment for all sums payable by the Company under or in connection with the
Debt Securities of any series.  Any
amount received or recovered in a currency other than U.S. Dollars (whether as
a result of, or of the enforcement of, a judgment or order of a court of any
jurisdiction, in the winding up or dissolution of the Company or otherwise) by
any Holder of Debt Securities of such series in respect of any sum expressed to
be due to it from the Company shall only constitute a discharge of the Company
to the extent of the U.S. Dollar amount which the recipient is able to purchase
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 U.S. Dollar amount is less than the
U.S. Dollar amount expressed to be due to the recipient under any Debt
Security, the Company shall indemnify such recipient against any loss sustained
by it as a result.  In any event, the
Company shall indemnify the recipient against the cost of making any such
purchase.  For the purposes of this Section 6.13,
it will be sufficient for the Holder to certify (indicating the sources of
information used) that it would have suffered a loss had an actual purchase of
U.S. Dollars been made with the amount so received in that other currency on
the date of receipt or recovery (or, if a purchase of U.S. Dollars on such date
had not been practicable, or the first date on which it would have
practicable).  These indemnities
constitute a separate and independent obligation from the Company’s other
obligations, shall give rise to a separate and independent cause of action,
shall apply irrespective of any waiver granted by any 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 under any Debt Security or any
other judgment or order.

 

ARTICLE SEVEN

 

CONCERNING THE TRUSTEE

 

SECTION 7.1  Duties and Responsibilities of the
Trustee; During Default; Prior to Default. 
With respect to the Holders of Debt Securities issued hereunder, the
Trustee, prior to the occurrence of an Event of Default with respect to the
Debt Securities of such series and after the curing or waiving of all Events of
Default which may have occurred with respect to the Debt Securities of such
series, undertakes to perform such duties and only such duties as are
specifically set forth in this Indenture. 
In case an Event of Default with respect to the Debt Securities of such
series has occurred (which has not been cured or waived), the Trustee shall

 

66

 

exercise such of the
rights and powers vested in it by this Indenture, and use the same degree of
care and skill in their exercise, as a prudent person would exercise or use
under the circumstances in the conduct of such person’s own affairs.

 

No provision of this
Indenture shall be construed to relieve the Trustee from liability for its own
negligent action, its own negligent failure to act or its own willful
misconduct, except that:

 

(a)                                  prior
to the occurrence of an Event of Default with respect to the Debt Securities of
any series and after the curing or waiving of all such Events of Default with
respect to the Debt Securities of such series which may have occurred:

 

(i)                                     the
duties and obligations of the Trustee with respect to the Debt Securities of
such series shall be determined solely by the express provisions of this
Indenture, and the Trustee shall not be liable except for the performance of
such duties and obligations as are specifically set forth in this Indenture,
and no implied covenants or obligations shall be read into this Indenture
against the Trustee;

 

(ii)                                  in
the absence of bad faith on the part of the Trustee, the Trustee may
conclusively rely, as to the truth of the statements and the correctness of the
opinions expressed therein, upon any statements, certificates or opinions
furnished to the Trustee and conforming to the requirements of this Indenture;
but in the case of any such statements, certificates or opinions which by any
provision hereof are specifically required to be furnished to the Trustee, the
Trustee shall be under a duty to examine the same to determine whether or not
they conform to the requirements of this Indenture; and

 

(iii)                               the Trustee shall not
exercise any rights that it may otherwise have under subparagraph (2) of
Section 345 of the Argentine Companies Law;

 

(b)                                 without
limiting the effect of paragraph (a) of this Section 7.1, the Trustee
shall not be liable for any error of judgment made in good faith by a
Responsible Officer or Responsible Officers of the Trustee, unless it shall be
proved that the Trustee was negligent in ascertaining the pertinent facts; and

 

(c)                                  the
Trustee shall not be liable with respect to any action taken or omitted to be
taken by it in good faith in accordance with the direction of the Holders pursuant
to Section 6.9 hereof relating to the time, method and place of conducting
any proceeding for any remedy available to the Trustee, or exercising any trust
or power conferred upon the Trustee, under this Indenture.

 

None of the provisions
contained in this Indenture shall require the Trustee to expend or risk its own
funds or otherwise incur personal financial liability in the performance of any
of its duties or in the exercise of any of its rights or powers, if there shall
be reasonable ground for believing that the repayment of such funds or adequate
indemnity against such liability is not reasonably assured to it.

 

Every provision of this
Indenture that in any way relates to the Trustee is subject to this Section 7.1.

 

67

 

SECTION 7.2  Certain Rights of the Trustee.  Subject to Section 7.1 hereof:

 

(a)                                  the
Trustee may conclusively rely and shall be protected in acting or refraining
from acting upon any resolution, Officers’ Certificate or any other certificate,
statement, instrument, opinion, report, notice, request, consent, order, bond,
debenture, note, coupon, security or other paper or document whether in its
original or facsimile form believed by it to be genuine and to have been signed
or presented by the proper party or parties;

 

(b)                                 any
request, direction, order or demand of the Company mentioned herein shall be
sufficiently evidenced by a Company Request or Company Order (unless other
evidence in respect thereof be herein specifically prescribed); and any
resolution of the Board of Directors of the Company may be evidenced to the
Trustee by a Board Resolution;

 

(c)                                  the
Trustee may consult with counsel of its selection and any advice or Opinion of
Counsel shall be full and complete authorization and protection in respect of
any action taken, suffered or omitted to be taken by it hereunder in good faith
and in accordance with such advice or Opinion of Counsel;

 

(d)                                 the
Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by this Indenture at the request, order or direction of any of the
Holders of Debt Securities of any series pursuant to the provisions of this
Indenture, unless such Holders shall have offered to the Trustee reasonable
security or indemnity against the costs, expenses and liabilities which might
be incurred therein or thereby;

 

(e)                                  the
Trustee shall not be liable for any action taken or omitted by it in good faith
and believed by it to be authorized or within the discretion, rights or powers
conferred upon it by this Indenture;

 

(f)                                    the
Trustee shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument, opinion, report,
notice, request, consent, order, approval, appraisal, bond, debenture, note,
coupon, security, or other paper or document unless requested in writing to do
so by the Holders of not less than 51% in aggregate principal amount of the
Debt Securities of any series affected at the time Outstanding present or
represented at a meeting of such Holders at which a quorum is present; provided that, if the payment within a reasonable time to
the Trustee of the costs, expenses or liabilities likely to be incurred by it
in the making of such investigation is, in the opinion of the Trustee, not
reasonably assured to the Trustee by the security afforded to it by the terms
of this Indenture, the Trustee may require reasonable indemnity against such
expenses or liabilities as a condition to proceeding; the reasonable expenses
of every such investigation shall be paid by the Company or, if paid by the
Trustee or any predecessor trustee, shall be repaid by the Company upon demand;

 

(g)                                 the
Trustee may execute any of the rights or powers hereunder or perform any duties
hereunder either directly or by or through agents or attorneys not regularly in
its employ and the Trustee shall not be responsible for any misconduct or
negligence on the part of any such agent or attorney appointed with due care by
it hereunder;

 

68

 

(h)                                 the
Trustee is not assuming any obligation, and the Holders hereby waive any right
they might have, to require the Trustee to attend meetings of the Board of
Directors or shareholders of the Company;

 

(i)                                     the
Trustee shall not be deemed to have notice of any Default or Event of Default
unless a Responsible Officer of the Trustee has actual knowledge thereof or
unless written notice of any event which is in fact such a default is received
by the Trustee at the Corporate Trust Office of the Trustee, and such notice
references the Debt Securities and this Indenture; and

 

(j)                                     the
permissive rights of the Trustee enumerated herein shall not be construed as
duties of the Trustee.

 

SECTION 7.3  Trustee Not Responsible for Recitals, Disposition
of Debt Securities or Application of Proceeds Thereof.  Other than as specifically provided in the
Trustee recitals to this Indenture, the recitals contained herein and in the
Debt Securities, except the Trustee’s certificates of authentication, and in
any coupons shall be taken as the statements of the Company, and the Trustee
assumes no responsibility for the correctness of the same.  The Trustee makes no representation to any
Holder as to the validity or sufficiency of this Indenture or of the Debt
Securities or coupons, except that the Trustee represents that it is duly
authorized to execute and deliver this Indenture, authenticate the Debt
Securities and perform its obligations hereunder and that the statements made
by it in any Statement of Eligibility on Form T-1 supplied to the Company
are true and accurate, subject to any qualifications set forth therein.  The Trustee shall not be accountable for the
use or application by the Company of any of the Debt Securities or of the
proceeds thereof.

 

SECTION 7.4  May Hold Debt Securities;
Collections, Etc.  The Trustee or any
Authenticating Agent, any Paying Agent, any Registrar or Co-Registrar or any
other agent of the Company or the Trustee, in its individual or any other
capacity, may become the owner or pledgee of Debt Securities and coupons with
the same rights it would have if it were not the Trustee or any Authenticating
Agent, any Paying Agent, any Registrar or Co-Registrar or any other agent of
the Company or such agent and, subject to Sections 7.8 and 7.13 hereof, if
operative, may otherwise deal with the Company and receive, collect, hold and
retain collections from the Company with the same rights it would have if it
were not the Trustee or any Authenticating Agent, any Paying Agent, any Registrar
or Co-Registrar or any other agent of the Company.

 

SECTION 7.5  Moneys Held by Trustee.  Subject to the provisions of Section 11.4
hereof, all moneys received by the Trustee shall, until used or applied as
herein provided, be held in trust for the purposes for which they were
received, but need not be segregated from other funds, except to the extent
required by mandatory provisions of law. 
Neither the Trustee nor any agent of the Company shall be under any
liability for interest on any moneys received by it hereunder, except as
otherwise agreed in writing with the Company. 
So long as no Default or Event of Default shall have occurred and be
continuing, all interest allowed on any such moneys shall be paid from time to
time to the Company upon Company order.

 

69

 

SECTION 7.6  Compensation and Indemnification of
Trustee and Its Prior Claim.  The
Company covenants and agrees to pay to the Trustee from time to time, and the
Trustee shall be entitled to, such compensation as shall be agreed to in
writing (which shall not be limited by any provision of law in regard to the
compensation of a trustee of an express trust) and the Company covenants and
agrees to pay or reimburse the Trustee and each predecessor Trustee upon its
request for all reasonable expenses, disbursements and advances incurred or
made by or on behalf of it in accordance with any of the provisions of this
Indenture (including the reasonable compensation, expenses and disbursements of
its counsel and of all agents and other persons not regularly in its employ)
except any such expense, disbursement or advance as may arise from its
negligence or bad faith.  The Company
also covenants to indemnify the Trustee, the Registrar, their agents, officers
and directors, and each predecessor Trustee for, and to hold them harmless
against, any and all loss, liability, damage, claim or expense, including taxes
(other than taxes based on the income of the Trustee) incurred without
negligence or bad faith on their part, arising out of or in connection with the
acceptance or administration of this Indenture or the trusts hereunder and its
duties hereunder and the costs and expenses of defending itself against or
investigating any claim of liability in the premises.  The obligations of the Company under this Section to
compensate and indemnify the Trustee, the Registrar, their agents, officers and
employees and each predecessor Trustee and to pay or reimburse the Trustee, its
agents, officers and employees and each predecessor Trustee for expenses,
disbursements and advances with respect to any series of Debt Securities shall
constitute additional indebtedness hereunder and shall survive the satisfaction
and discharge of this Indenture and the resignation or removal of the
Trustee.  Such additional indebtedness
shall be a senior claim to that of the Debt Securities of any series upon all
property and funds held or collected by the Trustee as such, except funds held
in trust for the benefit of the holders of particular Debt Securities of such
series.

 

SECTION 7.7  Right of Trustee to Rely on Officers’
Certificate, Etc.  Subject to
Sections 7.1 and 7.2, whenever in the administration of the trusts of this
Indenture the Trustee shall deem it necessary or desirable that a matter be
proved or established prior to taking or suffering or omitting any action
hereunder, such matter (unless other evidence in respect thereof be herein
specifically prescribed) may, in the absence of negligence or bad faith on the
part of the Trustee, be deemed to be conclusively proved and established by an
Officers’ Certificate delivered to the Trustee, and such certificate, in the
absence of negligence or bad faith on the part of the Trustee, shall be full
warrant to the Trustee for any action taken, suffered or omitted by it under
the provisions of this Indenture upon the faith thereof.

 

SECTION 7.8  Qualification of Trustee; Conflicting
Interests.  If the Trustee has or
shall acquire any conflicting interest within the meaning of the Trust Indenture
Act, the Trustee shall either eliminate such conflicting interest or resign, to
the extent and in the manner provided by, and subject to the provisions of, the
Trust Indenture Act and this Indenture.

 

SECTION 7.9  Corporate Trustee Required; Eligibility.  There shall at all times be a Trustee
hereunder which (a) shall be a corporation eligible to act as Trustee
under Section 310(a)(1) of the Trust Indenture Act and Article 13
of the Negotiable Obligations Law, (b) shall have a combined capital and surplus
of at least U.S.$50,000,000, and (c) shall at all times maintain a Paying
Agent, Transfer Agent and Registrar in the Borough of Manhattan, The City of
New York, and a Co-Registrar and a Paying Agent in Buenos Aires,
Argentina.  If such corporation publishes
reports of condition at least annually, pursuant to law or to the

 

70

 

requirements of Federal,
State, Territorial or District of Columbia supervising or examining authority,
then for the purposes of this Section, the combined capital and surplus of such
corporation shall be deemed to be its combined capital and surplus as set forth
in its most recent report of condition so published.  If at any time the Trustee shall cease to be
eligible in accordance with the provisions of this Section, it shall resign
immediately in the manner and with the effect hereinafter specified in this
Article.

 

SECTION 7.10  Resignation and Removal; Appointment of
Successor Trustee.  (a)  The
Trustee, or any trustee or trustees hereafter appointed, may at any time resign
with respect to the Debt Securities of one or more series by giving written
notice of resignation to the Company and by mailing written notice thereof by
first-class mail, postage prepaid, to all Holders at their last addresses as
they shall appear on the Debt Security Register.  Upon receiving such notice of resignation,
the Company shall promptly appoint a successor trustee or trustees by written
instrument in duplicate, executed by authority of the Board of Directors of the
Company, one copy of which instrument shall be delivered to the resigning
Trustee and one copy to the successor trustee or trustees.  If no successor trustee shall have been so
appointed and have accepted appointment within 30 days after the mailing
of such notice of resignation, the resigning trustee may at the expense of the
Company petition any court of competent jurisdiction for the appointment of a
successor trustee, or any Holder who has been a bona fide
holder of a Debt Security or Debt Securities for at least six months may,
subject to the provisions of Section 6.12 hereof, on behalf of himself and
all others similarly situated, petition any such court for the appointment of a
successor trustee.  Such court may
thereupon, after such notice, if any, as it may deem proper and prescribe,
appoint a successor trustee.

 

(b)                                 In
case at any time any of the following shall occur:

 

(i)                                     the
Trustee shall fail to comply with the provisions of Section 7.8 hereof or Section 310(b) of
the Trust Indenture Act after written request therefor by the Company or by any
Holder who has been a bona fide
Holder for at least six months; or

 

(ii)                                  the
Trustee shall cease to be eligible in accordance with the provisions of Section 7.9
hereof and shall fail to resign after written request therefor by the Company
or by any Holder; or

 

(iii)                               the
Trustee shall become incapable of acting or shall be adjudged to be bankrupt or
insolvent, or a receiver or liquidator of the Trustee or of its property shall
be appointed, or any public officer shall take charge or control of the Trustee
or of its property or affairs for the purpose of rehabilitation, conservation
or liquidation;

 

then, in any such case, the Company may vary or
terminate the appointment of the Trustee with respect to all Debt Securities
and appoint a successor trustee by written instrument, in duplicate, executed
by order of the Board of Directors of the Company, one copy of which instrument
shall be delivered to the Trustee so removed and one copy to the successor
trustee, or, subject to the provisions of Section 7.11 hereof, unless the
Trustee’s duty to resign is stayed as provided herein, any Holder who has been
a bona fide Holder for at least six months
may on behalf of himself and all others similarly situated, petition any court
of competent jurisdiction for the removal of the Trustee with respect to all
Debt Securities and the appointment of a successor

 

71

 

trustee.  If the
Trustee has been removed and no successor trustee with respect to the Debt
Securities of any series shall have been so appointed within 30 days after
delivery of such instrument to the Trustee so removed, the Trustee so removed
may at the expense of the Company petition any court of competent jurisdiction
for the appointment of a successor trustee. 
Such court may thereupon, after such notice, if any, as it may deem
proper and prescribe, remove the Trustee and appoint a successor trustee with
respect to the Debt Securities of such series.

 

(c)                                  The
Holders of a majority in aggregate principal amount of Outstanding Debt
Securities of any series may at any time remove the Trustee and appoint a
successor trustee with respect to such series by delivering to the Trustee so
removed, to the successor trustee so appointed and to the Company the evidence
provided for in Section 8.1 hereof of the action in that regard taken by
the Holders.

 

(d)                                 No
resignation or removal of the Trustee and no appointment of a successor trustee
pursuant to any of the provisions of this Section 7.10 shall become
effective until the acceptance of appointment by the successor trustee as
provided in Section 7.11 hereof.

 

(e)                                  The
Company or the Trustee, as the case may be, shall give notice of each
resignation and each removal of the Trustee with respect to the Debt Securities
of any series and each appointment of a successor Trustee to the Holders of
Debt Securities of such series in the manner provided herein and in Section 12.4.  Each notice shall include the name of the successor
Trustee and the address of its Corporate Trust Office.  Each of the parties hereto shall provide to
the CNV copies of all notices under this Section 7.10 addressed to, or
sent by, such party with respect to the reorganization, removal or replacement
of the Trustee.

 

SECTION 7.11  Acceptance of Appointment by Successor
Trustee.  Every successor trustee
appointed as provided in Section 7.10 shall execute, acknowledge and
deliver to the Company and to its predecessor trustee an instrument accepting
such appointment hereunder, and thereupon the resignation or removal of the
predecessor trustee shall become effective and such successor trustee, without
any further act, deed or conveyance, shall become vested with all rights,
powers, trusts, duties and obligations of its predecessor hereunder, with like
effect as if originally named as trustee; but, nevertheless, on the written
request of the Company or of the successor trustee, upon payment of all of its
charges then unpaid, the trustee ceasing to act shall, subject to Section 11.4
hereof, duly assign, transfer and deliver to the successor trustee all Property
and moneys at the time held by it hereunder and shall execute and deliver an
instrument transferring to such successor trustee all such rights, powers,
trusts, duties and obligations.  Upon
request of any such successor trustee, the Company shall execute any and all
instruments in writing for more fully and certainly vesting in and confirming
to such successor trustee all such rights and powers and trusts.  Any trustee ceasing to act shall,
nevertheless, retain a prior claim upon all property or funds held or collected
by such trustee to secure any amounts then due it pursuant to the provisions of
Section 7.6 hereof.

 

If a successor trustee is
appointed with respect to the Debt Securities of any series, the Company, the
predecessor Trustee and each successor trustee with respect to the Debt
Securities of such series shall execute and deliver an indenture supplemental
hereto which shall contain such provisions as shall be deemed necessary or
desirable to confirm that all the rights, powers, trusts and duties of the
predecessor Trustee with respect to the Debt Securities of such

 

72

 

series as to which the
predecessor Trustee is not retiring shall continue to be vested in the
predecessor Trustee, and shall add to or change any of the provisions of this
Indenture as shall be necessary to provide for or facilitate the administration
of the trusts hereunder by more than one trustee, it being understood that
nothing herein or in such supplemental indenture shall constitute such trustees
or co-trustees of the same trust and that each such trustee shall be trustee of
a trust or trusts under separate indentures.

 

No successor trustee
shall accept appointment as provided in this Section 7.11 unless at the
time of such acceptance such successor trustee shall be qualified under the
provisions of Section 7.8 hereof and eligible under the provisions of Section 7.9
hereof.

 

Upon acceptance of
appointment by any successor trustee as provided in this Section 7.11, the
Company shall mail written notice thereof by first-class mail, postage prepaid,
to all Holders of Debt Securities of such series for which such successor
trustee is acting as trustee at their last addresses as they shall appear in
the Debt Security Register.  If the
acceptance of appointment is substantially contemporaneous with the
resignation, then the notice called for by the preceding sentence may be
combined with the notice called for by Section 7.10 hereof.  If the Company fails to mail such notice
within ten days after acceptance of appointment by the successor trustee, the
successor trustee shall cause such notice to be filed at the expense of the
Company.

 

SECTION 7.12  Merger, Conversion, Consolidation or
Succession to Business of Trustee. 
Any corporation into which the Trustee may be merged or converted or
with which it may be consolidated, or any corporation resulting from any
merger, conversion or consolidation to which the Trustee shall be a party, or
any corporation succeeding to all or substantially all of the corporate trust
business of the Trustee, shall be the successor of the Trustee hereunder; provided that such corporation shall be otherwise qualified
under the provisions of Section 7.8 hereof and eligible under the
provisions of Section 7.9 hereof, without the execution or filing of any
paper or any further act on the part of any of the parties hereto, anything
herein to the contrary notwithstanding.

 

In case, at the time such
successor to the Trustee shall succeed to the trusts created by this Indenture,
any Debt Securities shall have been authenticated but not delivered, any such
successor to the Trustee may adopt the certificate of authentication of any
predecessor Trustee and deliver such Debt Securities so authenticated with
the same effect as if such successor Trustee had itself authenticated such Debt
Securities, and, in case at that time any Debt Securities shall not have been
authenticated, any successor to the Trustee may authenticate such Debt
Securities either in the name of any predecessor hereunder or in the name of
the successor Trustee; and in all such cases such certificate shall have the
full force which it is anywhere in the Debt Securities or in this Indenture
provided that the certificate of the Trustee shall have; provided
that the right to adopt the certificate of authentication of any predecessor
Trustee or to authenticate Debt Securities in the name of any predecessor
Trustee shall apply only to its successor or successors by merger, conversion
or consolidation.

 

SECTION 7.13  Preferential Collection of Claims Against
Company.  If and when the Trustee
shall be or become a creditor of the Company (or any other obligor under the
Debt

 

73

 

Securities), the Trustee
shall be subject to the provisions of the Trust Indenture Act regarding the
collection of claims against the Company (or any such other obligor).

 

SECTION 7.14  Appointment of Authenticating Agent.  At any time when any of the Debt Securities
of any series remain Outstanding, the Trustee may appoint an Authenticating
Agent or Agents which shall be authorized to act on behalf of the Trustee to
authenticate Debt Securities of such series issued upon original issue and upon
exchange, registration of transfer or pursuant to Section 3.9 hereof, and
Debt Securities so authenticated shall be entitled to the benefits of this
Indenture and shall be valid and obligatory for all purposes as if
authenticated by the Trustee hereunder. 
Wherever reference is made in this Indenture to the authentication and
delivery of Debt Securities by the Trustee or the Trustee’s certificate of
authentication, such reference shall be deemed to include authentication and
delivery on behalf of the Trustee by an Authenticating Agent and a certificate
of authentication executed on behalf of the Trustee by an Authenticating
Agent.  Each Authenticating Agent shall
be acceptable to the Company and shall at all times be a corporation organized
and doing business under the laws of the United States of America, any State
thereof or the District of Columbia, authorized under such laws to act as
Authenticating Agent, having a combined capital and surplus of not less than
U.S.$50,000,000 and subject to supervision or examination by Federal or State
authority.  If such Authenticating Agent
publishes reports of condition at least annually, pursuant to law or to the
requirements of said supervising or examining authority, then for the purposes
of this Section, the combined capital and surplus of such Authenticating Agent
shall be deemed to be its combined capital and surplus as set forth in its most
recent report of condition so published. 
If at any time an Authenticating Agent shall cease to be eligible in
accordance with the provisions of this Section, such Authenticating Agent shall
resign immediately in the manner and with the effect specified in this Section.

 

Any corporation into
which an Authenticating Agent may be merged or converted or with which it may
be consolidated, or any corporation resulting from any merger, conversion or
consolidation to which such Authenticating Agent shall be a party, or any
corporation succeeding to the corporate agency or corporate trust business of
an Authenticating Agent, shall continue to be an Authenticating Agent, provided
such corporation shall be otherwise eligible under this Section, without the
execution or filing of any paper or any further act on the part of the Trustee
or the Authenticating Agent.

 

An Authenticating Agent
may resign at any time by giving written notice thereof to the Trustee and to
the Company.  The Trustee may at any
time, and upon the request of the Company, terminate the agency of an Authenticating
Agent by giving written notice thereof to such Authenticating Agent and to the
Company.  Upon receiving such a notice of
resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the provisions
of this Section, the Trustee may appoint a successor Authenticating Agent which
shall be acceptable to the Company and shall mail written notice of such
appointment by first-class mail, postage prepaid, to all Holders of Debt
Securities of the series with respect to which such Authenticating Agent will
serve, as their names and addresses appear in the Debt Security Register.  Any successor Authenticating Agent upon
acceptance of its appointment hereunder shall become vested with all the
rights, powers and duties of its predecessor hereunder, with like effect as if
originally named as an Authenticating Agent. 
No

 

74

 

successor Authenticating
Agent shall be appointed unless eligible under the provisions of this Section.

 

The Company, whenever
necessary to avoid or fill a vacancy in the office of the Authenticating Agent,
will appoint, in the manner provided in this Section 7.14, an
Authenticating Agent, so that there shall at all times be an Authenticating Agent
with respect to the Debt Securities.

 

The Company agrees to pay
to each Authenticating Agent from time to time reasonable compensation for its
services under this Section 7.14.

 

If an appointment is made
pursuant to this Section, the Debt Securities of such series may have endorsed
thereon, in addition to the Trustee’s certificate of authentication, an
alternate certificate of authentication in the following form:

 

This is one of the Debt
Securities of Multicanal S.A. described in the within-mentioned Indenture.

 

Dated:

 

	
   

  	
  LAW DEBENTURE TRUST COMPANY OF

  NEW YORK,

  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  As
  Authenticating Agent

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  As Authorized
  Signatory

  

 

 

ARTICLE EIGHT

 

CONCERNING THE HOLDERS

 

SECTION 8.1  Evidence of Acts of Holders.  Any request, demand, authorization,
direction, notice, consent, waiver or other action provided by this Indenture
to be given or taken by a specified percentage in principal amount of the
Holders of all series or one or more series, as the case may be, that is not required
under Argentine law to be taken at a meeting of Holders may be embodied in and
evidenced by one or more instruments of substantially similar tenor signed by
such specified percentage of Holders in person or by agents duly appointed in
writing; and, except as herein otherwise expressly provided, such action shall
become effective when such instrument or instruments are delivered to the
Trustee and, where it is hereby expressly required, to the Company.  Proof of execution of any such instrument or
of a writing appointing any such agent shall be sufficient for any purpose of
this Indenture and (subject to Sections 7.1

 

75

 

and 7.2 hereof)
conclusive in favor of the Trustee and the Company, if made in the manner
provided in this Article.

 

Without limiting the
generality of the foregoing, unless otherwise established in or pursuant to a
resolution or established in one or more indentures supplemental hereto,
pursuant to Article Nine, a Holder, including a Depositary that is a
Holder of a Global Registered Debt Security, may make, give or take, by a
proxy, or proxies, duly appointed in writing, any request, demand,
authorization, direction, notice, consent, waiver or other action provided in
this Indenture to be made, given or taken by Holders, and a Depositary that is
a Holder of a Global Registered Debt Security may provide its proxy or proxies
to the beneficial owners of interests in any such Global Registered Debt
Security through such Depositary’s standing instructions and customary
practices.

 

The principal amount and
serial numbers of Registered Debt Securities held by any Person, and the date
of holding the same, shall be proved by the Debt Security Register.

 

The principal amount and
serial numbers of Bearer Debt Securities held by any Person, and the date of
holding the same, may be proved by the production of such Bearer Debt
Securities or by a certificate executed, as depositary, by any trust company,
bank, banker or other depositary, wherever situated, if such certificate shall
be deemed by the Trustee to be satisfactory, showing that at the date therein
mentioned such Person had on deposit with such depositary, or exhibited to it,
the Bearer Debt Securities therein described; or such facts may be proved by
the certificate or affidavit of the Person holding such Bearer Debt Securities,
if such certificate or affidavit is deemed by the Trustee to be
satisfactory.  The Trustee and the
Company may assume that such ownership of any Bearer Debt Security continues
until (1) another certificate or affidavit bearing a later date issued in
respect of the same Bearer Debt Security is produced, or (2) such Bearer
Debt Security is produced to the Trustee by some other Person, or (3) such
Bearer Debt Security is surrendered in exchange for a Registered Debt Security,
or (4) such Bearer Debt Security is no longer Outstanding.  The principal amount and serial numbers of
Bearer Debt Securities held by any Person, and the date of holding the same,
may also be proved in any other manner which the Trustee deems sufficient.

 

If the Company shall
solicit from Holders of Registered Debt Securities any request, demand,
authorization, direction, notice, consent, waiver or other act, the Company
may, at its option, by or pursuant to a Board Resolution, fix in advance a
record date for the determination of Holders entitled to give such request,
demand, authorization, direction, notice, consent, waiver or other Act, but the
Company shall have no obligation to do so. 
Notwithstanding Section 316(c) of the Trust Indenture Act,
such record date shall be the record date specified in or pursuant to such
Board Resolution, which shall be a date not earlier than the date 30 days
prior to the first solicitation of Holders generally in connection therewith
and not later than the date such solicitation is completed.  If such a record date is fixed, such request,
demand, authorization, direction, notice, consent, waiver or other Act may be
given before or after such record date, but only the Holders of record at the
close of business on such record date shall be deemed to be Holders for the
purposes of determining whether Holders of the requisite proportion of
Outstanding Debt Securities have authorized or agreed or consented to such
request, demand, authorization, direction, notice, consent, waiver or other
Act, and for that purpose the Outstanding Debt Securities shall be computed as
of such record date; provided that

 

76

 

no such authorization,
agreement or consent by the Holders on such record date shall be deemed
effective unless it shall become effective pursuant to the provisions of this
Indenture not later than eleven months after the record date.

 

Any request, demand,
authorization, direction, notice, consent, waiver or other Act of the Holder of
any Debt Security shall bind every future Holder of the same Debt Security and
the Holder of every Debt Security issued upon the registration of transfer
thereof or in exchange therefor or in lieu thereof in respect of anything done,
omitted or suffered to be done by the Trustee or the Company in reliance
thereon, whether or not notation of such action is made upon such Debt
Security.

 

SECTION 8.2  Proof of Execution of Instruments and of
Holding of Debt Securities.  Subject
to Sections 7.1 and 7.2 hereof, the execution of any instrument by a
Holder or his agent or proxy may be proved in accordance with such reasonable rules and
regulations as may be prescribed by the Trustee or in such manner as shall be satisfactory
to the Trustee.  The holding of Debt
Securities shall be proved by the Debt Security Register or by a certificate of
the Registrar.

 

SECTION 8.3  Holders to Be Treated as Owners.  The Company, the Trustee and any agent of the
Company or the Trustee may deem and treat the person in whose name any Debt
Security shall be registered upon the Debt Security Register as the absolute
owner of such Debt Security (whether or not such Debt Security shall be overdue
and notwithstanding any notation of ownership or other writing thereon) for the
purpose of receiving payment of or on account of the principal of and, subject
to the provisions of this Indenture, interest on such Debt Security and for all
other purposes and to the extent permitted by law neither the Company or the
Trustee nor any agent of the Company or the Trustee shall be affected by any
notice to the contrary.  All such
payments so made to any such person, or upon his order, shall be valid, and, to
the extent of the sum or sums so paid, effectual to satisfy and discharge the
liability for moneys payable upon any such Debt Security.

 

Title to any Bearer Debt
Security and any coupons appertaining thereto shall pass by delivery.  The Company, the Trustee, each Paying Agent
and any agent of any of them may treat the bearer of any Bearer Debt Security
and the bearer of any coupon as the absolute owner of such Debt Security or
coupon for the purpose of receiving payment thereof or on account thereof and
for all other purposes whatsoever, whether or not such Debt Security or coupons
be overdue, and none of the Company, the Trustee, any Paying Agent or any agent
of any of them shall be affected by notice to the contrary.

 

No holder of any
beneficial interest in any Global Registered Debt Security held on its behalf
by a Depositary shall have any rights under this Indenture with respect to such
Global Registered Debt Security, and such Depositary may be treated by the
Company, the Trustee, and any agent of the Company or the Trustee as the owner
of such Global Registered Debt Security for all purposes whatsoever.  Notwithstanding the foregoing, nothing herein
shall impair, as between a Depositary and such holders of beneficial interests,
the operation of customary practices governing the exercise of the rights of
the Depositary as Holder of any Debt Security.

 

77

 

SECTION 8.4  Debt Securities Owned by Company Deemed
Not Outstanding.  In determining
whether the holders of the requisite aggregate principal amount of Outstanding
Debt Securities of any series have given any request, demand, authorization,
direction, consent or waiver under this Indenture, Debt Securities owned by the
Company or any other obligor upon the Debt Securities or any Subsidiary or
Affiliate of the Company or such obligor shall be disregarded and deemed not to
be Outstanding for the purpose of any such determination, except that, for the
purpose of determining whether the Trustee shall be protected in relying on any
such request, demand, authorization, direction, consent or waiver, only Debt
Securities which the Trustee actually knows to be so owned shall be so
disregarded.  Debt Securities so owned
which have been pledged in good faith may be regarded as Outstanding if the
pledgee establishes to the satisfaction of the Trustee the pledgee’s right so
to act with respect to such Debt Securities and that the pledgee is not the
Company or any other obligor upon the Debt Securities or any Subsidiary or
Affiliate of the Company or any such obligor.  In case of a dispute as to such right, the
advice of counsel shall be full protection in respect of any decision made by
the Trustee in accordance with such advice. 
Upon request of the Trustee, the Company shall furnish to the Trustee
promptly an Officers’ Certificate listing and identifying all Debt Securities,
if any, known by the Company to be owned or held by or for the account of any
of the above-described persons and, subject to Sections 7.1 and 7.2
hereof, the Trustee shall be entitled to accept such Officers’ Certificate as
conclusive evidence of the facts therein set forth and of the fact that all
Debt Securities not listed therein are Outstanding for the purpose of any such
determination.

 

SECTION 8.5  Right of Revocation of Action Taken.  At any time prior to (but not after) the
evidencing to the Trustee, as provided in Section 8.1 hereof, of the
taking of any action by the Holders of the requisite percentage in aggregate
principal amount of Debt Securities specified in this Indenture in connection
with such action, any Holder of a Debt Security, the serial number of which is
shown by the evidence to be included among the serial numbers of the Debt
Securities the Holders of which have consented to such action, may, by filing
written notice at the Corporate Trust Office and upon proof of holding as
provided in this Article, revoke such action so far as concerns such Debt
Security.  Except as aforesaid, any such
action taken by the Holder of any Debt Security shall be conclusive and binding
upon such Holder and upon all future Holders and owners of such Debt Security
and of any Debt Securities issued in exchange or substitution therefor,
irrespective of whether or not any notation in regard thereto is made upon any
such Debt Security.  Any action taken by
the Holders of the requisite percentage in aggregate principal amount of the
Debt Securities specified in this Indenture in connection with such action
shall be conclusively binding upon the Company, the Trustee and the Holders of
all Debt Securities affected by such action.

 

ARTICLE NINE

 

SUPPLEMENTAL INDENTURES
AND MEETINGS OF HOLDERS

 

SECTION 9.1  Supplemental Indentures Without Vote of
Holders.  Without the vote of any
Holders, the Company, when authorized by a Board Resolution, and the Trustee,
at any time and from time to time, may enter into one or more indentures
supplemental hereto, in form satisfactory to the Trustee, for any of the
following purposes:

 

78

 

 

(a)                                  to
evidence the succession of another Person to the Company and the assumption by
any such successor of the covenants of the Company herein and in the Debt
Securities; or

 

(b)                                 to
add to the covenants of the Company for the benefit of the Holders of all or
any series of Debt Securities and any related coupons (and if such covenants
are to be for the benefit of less than all series of Debt Securities stating
that such covenants are being included solely for the benefit of such series),
or to surrender any right or power herein conferred upon the Company; or

 

(c)                                  to
secure the Debt Securities; or

 

(d)                                 to
comply with any requirements of the Commission in order to effect and maintain
the qualification of this Indenture under the Trust Indenture Act; or

 

(e)                                  to
add to or change any of the provisions of this Indenture to provide that Bearer
Debt Securities may be registrable as to principal, to change or eliminate any
restrictions on the payment of principal of or any premium or interest on
Bearer Debt Securities, to permit Bearer Debt Securities to be issued in
exchange for Registered Debt Securities, to permit Bearer Debt Securities to be
issued in exchange for Bearer Debt Securities of other authorized denominations
or to permit or facilitate the issuance of Debt Securities in uncertificated
form; provided that any such action shall not
adversely affect the interests of the Holders of Debt Securities of any series
or any related coupons in any material respect; or

 

(f)                                    to
evidence and provide for acceptance of appointment hereunder by successor
Trustees with respect to the Debt Securities of one or more series pursuant to
the provisions herein; or

 

(g)                                 to
cure any ambiguity, to correct or supplement any provision herein which may be
inconsistent with any other provision herein, or to make any other provisions
with respect to matters or questions arising under this Indenture which shall
not be inconsistent with the provisions of this Indenture, provided
that such action pursuant to this clause (g) shall not adversely
affect the interests of the Holders in any material respect; or

 

(h)                                 to
increase the aggregate principal amount of Public Debt Securities at any time
outstanding under this Indenture.

 

SECTION 9.2  Supplemental Indentures with Vote of
Holders.  With the affirmative vote
of the Holders of not less than 51% in aggregate principal amount of the
Outstanding Debt Securities of any series present or represented at a meeting
of such Holders of Debt Securities of such series at which a quorum is present,
the Company, when authorized by a Board Resolution, and the Trustee may enter
into an indenture or indentures supplemental hereto for the purpose of adding
any provisions to or changing in any manner or eliminating any of the
provisions of this Indenture which affect such series of Debt Securities or of
modifying in any manner the rights of the Holders of Debt Securities of such
series under this Indenture; provided, however,
that no such supplemental indenture shall, without the unanimous affirmative
vote of the Holders of the Debt Securities of such series affected thereby:

 

79

 

(a)                                  change
the Stated Maturity of the principal of, or any installment of interest on, any
Debt Security of such series, or reduce the principal amount thereof, premium,
if any, thereon or the rate of interest thereon or the requirement to pay
Additional Amounts thereon;

 

(b)                                 change
the place of payment where, or the coin or currency in which, the principal of
or premium, if any, or interest or Additional Amounts (if any) on any Debt
Security of such series is payable;

 

(c)                                  impair
the right to institute suit for the enforcement of any such payment on or after
the Stated Maturity thereof (or, in the case of redemption, on or after the Redemption
Date);

 

(d)                                 reduce
the percentage in principal amount of the Outstanding Debt Securities of such
series, the consent of the Holders of which is required for the adoption of a
resolution or the quorum required to constitute a meeting of Holders at which a
resolution is adopted or the percentage in principal amount of Outstanding Debt
Securities of such series, the Holders of which are entitled to request the
calling of a meeting of Holders; or

 

(e)                                  modifying
the percentage in principal amount of the Outstanding Debt Securities of such
series the consent of the Holders of which is required to waive a past Default
or Event of Default.

 

A supplemental indenture
which changes or eliminates any covenant or other provision of this Indenture
which has expressly been included solely for the benefit of one or more
particular series of Debt Securities, or which modifies the rights of the
Holders of Debt Securities of such series with respect to such covenant or
other provision, shall be deemed not to affect the rights under this Indenture
of the Holders of Debt Securities of any other series.

 

It shall not be necessary
for the Holders under this Section to approve the particular form of any
proposed supplemental indenture, but it shall be sufficient if such Holders
shall approve the substance thereof.

 

SECTION 9.3  Execution of Supplemental Indentures.  In executing, or accepting the additional
trusts created by, any supplemental indenture permitted by this Article or
the modifications thereby of the trusts created by this Indenture, the Trustee
shall be entitled to receive, and (subject to Section 7.1 hereof) shall be
fully protected in relying upon, in addition to the documents required by Section 12.5,
an Opinion of Counsel stating that the execution of such supplemental indenture
is authorized or permitted by this Indenture. 
The Trustee may, but shall not be obligated to, enter into any such
supplemental indenture which affects the Trustee’s own rights, duties or
immunities under this Indenture or otherwise.

 

SECTION 9.4  Effect of Supplemental Indentures; Notice
to Holders.  (a)  Upon the
execution of any supplemental indenture under this Article, this Indenture
shall be modified in accordance therewith, and such supplemental indenture
shall form a part of this Indenture for all purposes; and every Holder of Debt
Securities theretofore or thereafter authenticated and delivered hereunder
shall be bound thereby.

 

80

 

(b)                                 The
Company shall, promptly after the execution of any supplemental indenture that
has been authorized by a vote of Holders pursuant to Section 9.2 hereof,
cause the Trustee to notify each Holder of the execution thereof.  Such notice to the Holders shall set forth
the substance of such supplemental indenture. 
Copies of all such supplemental indentures shall be available for
inspection at the Corporate Trust Office and at the offices of the
Registrar.  Failure to provide such
notice shall not affect the validity of such supplemental indenture.

 

SECTION 9.5  Conformity with Trust Indenture Act.  Every supplemental indenture executed
pursuant to this Article shall conform to the requirements of the Trust
Indenture Act as then in effect.

 

SECTION 9.6  Reference in Debt Securities to
Supplemental Indentures.  Debt
Securities authenticated and delivered after the execution of any supplemental
indenture pursuant to this Article may, and shall, if required by the
Trustee, bear a notation in form approved by the Trustee as to any matter
provided for in such supplemental indenture. 
If the Company shall so determine, new Debt Securities of any series so
modified as to conform, in the opinion of the Trustee and the Company, to any
such supplemental indenture may be prepared and executed by the Company and
authenticated and delivered by the Trustee in exchange for Outstanding Debt
Securities of such series.  Failure to
make the appropriate notation or to issue a new Debt Security of such series
shall not affect the validity of the supplemental indenture.

 

SECTION 9.7  Meetings of Holders; Modification and
Waiver.  (a)  The Trustee
or the Company shall, upon the request of the Holders of at least five percent
in aggregate principal amount of the Debt Securities of any series at the time
Outstanding, or the Company or the Trustee at its discretion, may, call a
meeting of the Holders of Debt Securities of such series at any time and from
time to time, to make, give or take any request, demand, authorization,
direction, notice, consent, waiver or other action provided by the Debt
Securities of such series to be made, given or taken by such Holders.  With respect to all matters not contemplated
in this Indenture, meetings of Holders will be held in Buenos Aires in
accordance with the Negotiable Obligations Law; provided, however,
that the Company or the Trustee may determine to hold any such meetings
simultaneously in Buenos Aires and in The City of New York by any means of
telecommunication.  Meetings shall be
held at such time and at such place as the Company or the Trustee shall
determine in such cities.  If a meeting
is being held pursuant to a request of Holders, the agenda for the meeting
shall be as determined in the request and such meeting shall be convened within
40 days from the date such request is received by the Trustee or the
Company, as the case may be.  Notice of
any meeting of Holders (which shall include the date, place and time of the
meeting, the agenda therefor and the requirements to attend) shall be published
not less than ten days nor more than 30 days prior to the date fixed for
the meeting in the Boletín Oficial de la
República (the Official Gazette of Argentina) and, while there are
Holders domiciled in Argentina, in a newspaper having major circulation in
Argentina and in accordance with Section 12.4 hereof and any publication
of such notice shall be for five consecutive Business Days in each place of
publication.

 

(b)                                 Any
Holder may attend the meeting in person or by proxy.  Directors, officers, managers, members of the
Supervisory Committee and employees of the Company may not be appointed as
proxies.  Holders of Debt Securities of
any series who intend to attend a

 

81

 

meeting of Holders of
Debt Securities of such series must notify the Registrar of their intention to
do so at least three days prior to the date of such meeting.

 

(c)                                  Except
as specified in Section 6.2 hereof, decisions shall be made by the
affirmative vote of the Holders of at least 51% in aggregate principal amount
of the Debt Securities of any series at the time Outstanding present or
represented at a meeting of such Holders at which a quorum is present; provided, however, that the affirmative vote of the Holders
of the applicable percentage in aggregate principal amount of the Debt Securities
of such series at the time Outstanding specified under Section 6.1 shall
be required to take the actions specified in such Section; provided
further, however, that the unanimous affirmative vote of the Holders
of the Debt Securities of such series shall be required to adopt a valid
decision on:

 

(i)                                     changing
the Stated Maturity of the principal of, or any installment of interest on any
Debt Security of such series, or reducing the principal amount thereof or
premium, if any, or the rate of interest thereon or changing the requirement to
pay Additional Amounts thereon;

 

(ii)                                  changing
the place of payment where, or the coin or currency in which, the principal of,
premium, if any, on or interest or Additional Amounts (if any) on any Debt
Security of such series is payable;

 

(iii)                               impairing
the right to institute suit for the enforcement of any such payment on or after
the Stated Maturity thereof (or, in the case of redemption, on or after the
Redemption Date);

 

(iv)                              reducing
the percentage in principal amount of the Outstanding Debt Securities of any
series, the consent of the Holders of which is required for the adoption of a
resolution or the quorum required to constitute a meeting of Holders at which a
resolution is adopted or the percentage in principal amount of Outstanding Debt
Securities of such series the Holders of which are entitled to request the
calling of a meeting of Holders; or

 

(v)                                 modifying
the percentage in principal amount of the Outstanding Debt Securities of any
series, the consent of the Holders of which is required to waive a past Default
or Event of Default.

 

Except as provided above,
any modifications, amendments or waivers to the terms and conditions of the
Debt Securities of any series will be conclusive and binding on all Holders of
Debt Securities of such series, whether or not present at any meeting, and
whether or not notation of such modifications, amendments or waivers is made
upon the Debt Securities of such series, provided that
any such modification, amendment or waiver was duly passed at a meeting
convened and held in accordance with the provisions of the Negotiable
Obligations Law.

 

(d)                                 Meetings
of the Holders of Debt Securities of any series shall be either “first call”
meetings (“primera convocatoria”) or “second call”
meetings (“segunda convocatoria”).  All meetings of the Holders of Debt
Securities of any series shall be deemed to be a first call meeting; provided, however, that
any reconvened meeting adjourned for lack of a

 

82

 

requisite quorum shall be
deemed a second call meeting.  The quorum
applicable at a meeting of the Holders of Debt Securities of any series shall
be as follows:

 

(i)                                     the
quorum for meetings called to adopt a resolution by which Holders of Debt Securities
of any series shall make any request, demand or direction or give any notice
(other than a resolution specified in paragraph (ii) below) shall, (A) in
the case of first call meetings, be such Persons holding or representing a
majority in aggregate principal amount of the Debt Securities of such series at
the time Outstanding and (B) in the case of second call meetings, be such
Persons present at such meeting holding or representing Debt Securities of such
series at the time Outstanding; and

 

(ii)                                  the
quorum for meetings called to adopt a resolution by which Holders consent to
any waiver under the of Debt Securities of any series or hereunder, agree to
any amendment to this Indenture or the terms and conditions of the Debt
Securities of any series, or specify the time, method and place of conducting
any proceeding for any remedy available to the Trustee, or exercising any trust
or power conferred upon the Trustee with respect to the Debt Securities of any
series by this Indenture, shall (A) in the case of first call meetings, be
Persons holding or representing at least 60% in aggregate principal amount of
the Debt Securities of any series at the time Outstanding and (B) in the
case of second call meetings, be Persons holding or representing at least 30%
in aggregate principal amount of the Debt Securities of any series at the time
Outstanding.

 

No reference herein and
no provision of the Debt Security or of this Indenture shall alter or impair
the obligation of the Company, which is absolute and unconditional, to pay the
principal of, premium, if any, on and interest on the Debt Security at the
times, place and rate, and in the coin or currency, herein prescribed.

 

ARTICLE TEN

 

MERGER, CONSOLIDATION AND
SALE OF ASSETS

 

SECTION 10.1  Merger, Consolidation and Sale of Assets.  The Company shall not consolidate with, merge
with or into, or sell, convey, transfer, lease or otherwise dispose of all or
substantially all of its property and assets (as an entirety or substantially
an entirety in one transaction or a series of related transactions) to, any
Person, except in accordance with Section 4.17 hereof.

 

SECTION 10.2  Successor Substituted.  Upon any consolidation of the Company with,
or merger of the Company into, any other Person or any transfer, conveyance,
sale, lease or other disposition of all or substantially all of the Properties
and assets of the Company as an entirety in accordance with Section 10.1
hereof, the Company’s successor corporation shall succeed to, and be
substituted for, and may exercise every right and power of, the Company under
this Indenture with the same effect as if such successor Person had been named
as the Company herein, and thereafter, except in the case of a lease, the
predecessor Person shall be relieved of all obligations and covenants under
this Indenture and the Debt Securities.

 

83

 

ARTICLE ELEVEN

 

SATISFACTION AND DISCHARGE

OF INDENTURE; UNCLAIMED MONEYS

 

SECTION 11.1  Satisfaction and Discharge of Indenture.  This Indenture shall, upon the Company’s
request, cease to be of further effect with respect to any series of Debt
Securities (except as to any surviving rights of registration of transfer or
exchange of Debt Securities herein expressly provided for and except as otherwise
specifically provided in this Indenture) and the Trustee, on demand of and at
the expense of the Company, shall execute proper instruments acknowledging
satisfaction and discharge of this Indenture, when

 

(1)                                  either

 

(A)                              all
Debt Securities of such series theretofore authenticated and delivered and all
coupons, if any, appertaining thereto (other than (i) coupons appertaining
to Bearer Debt Securities surrendered for exchange for Registered Debt
Securities and maturing after such exchange, whose surrender is not required or
has been waived as provided in Section 3.9 hereof, (ii) Debt
Securities and coupons of such series which have been destroyed, lost or stolen
and which have been replaced or paid as provided in Section 3.10 hereof,
or (iii) coupons appertaining to Debt Securities called for redemption and
maturing after the relevant Redemption Date, whose surrender has been waived as
provided in Section 13.3 (other than (i) Debt Securities of such
series which have been destroyed, lost or stolen and which have been replaced
or paid as provided in Section 3.10 hereof and (ii) Debt Securities
and coupons of such series for whose payment money has theretofore been
deposited in trust and thereafter repaid to the Company as provided in Section 11.4
hereof)) have been delivered to the Trustee for cancellation; or

 

(B)                                all
Debt Securities of such series, and any coupons appertaining thereto, not
theretofore delivered to the Trustee for cancellation have become due and
payable and the Company has (x) paid the entire indebtedness for
principal, premium, if any, interest and Additional Amounts, if any, due on the
Debt Securities of such series delivered to the Trustee for cancellation and
(y) irrevocably deposited or caused to be irrevocably deposited with the
Trustee as trust funds in trust for such purpose an amount, in the specified
currency of such Debt Securities, sufficient to pay and discharge the entire
indebtedness on such Debt Securities not theretofore delivered to the Trustee
for cancellation, for principal, premium, if any, interest and Additional
Amounts, if any, to the date of such deposit;

 

(2)                                  the
Company has paid or caused to be paid all other sums payable hereunder by the
Company with respect to such series of Debt Securities; and

 

(3)                                  the
Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent herein provided for
relating to the satisfaction and discharge of this Indenture with respect to
such series of Debt Securities have been complied with.

 

84

 

Notwithstanding the satisfaction and discharge of this
Indenture pursuant to this Article with respect to such series of Debt
Securities, the obligations of the Company to the Trustee under Section 7.6
hereof, the obligations of the Company to the Principal Paying Agent and any
other Paying Agent under Section 3.1 hereof, the obligations of the
Company to any Authenticating Agent under Section 7.14 hereof and, if
money shall have been deposited with the Trustee pursuant to subclause (ii) of
clause (A) of this Section 11.1, the obligations of the Trustee
under Sections 11.2 and 11.4 hereof shall survive.

 

SECTION 11.2  Application of Trust Money.  Subject to the provisions of Section 11.4
hereof, all money deposited with the Trustee pursuant to Section 11.1
hereof shall be held in trust and applied by it, in accordance with the
provisions of the Debt Securities and this Indenture, to the payment, either
directly or through any Paying Agent (including the Company acting as its own
Paying Agent) as the Trustee may determine, to the Persons entitled thereto, of
the principal, premium, if any, interest and Additional Amounts, if any, for
whose payment such money has been deposited with the Trustee, but such money
need not be segregated from other funds except to the extent required by law.

 

SECTION 11.3  Repayment of Moneys Held by Paying Agent.  The Company may at any time, for the purpose
of obtaining the satisfaction and discharge of this Indenture or for any other
purpose, pay, or by Company Order direct any Paying Agent to pay, to the
Trustee all sums held in trust by such Paying Agent, such sums to be held by
the Trustee upon the same trusts as those upon which such sums were held by such
Paying Agent; and, upon such payment by any Paying Agent to the Trustee, such
Paying Agent shall be released from all further liability with respect to such
money.

 

SECTION 11.4  Return of Moneys Held by Trustee and
Paying Agent Unclaimed for Two Years. 
Any money deposited with the Trustee or any Paying Agent in trust for
the payment of the principal of or premium, if any, interest or Additional
Amounts, if any, on any Debt Security and remaining unclaimed for
two years after such principal, premium, interest or Additional Amounts,
as the case may be, has become due and payable shall be repaid to the Company
on Company Request; and the Holder of such Debt Security shall thereafter, as
an unsecured general creditor, look only to the Company for payment thereof,
and all liability of the Trustee or such Paying Agent with respect to such
trust money shall thereupon cease; provided, however,
that the Trustee or such Paying Agent, before being required to make any such
repayment, may at the expense of the Company cause to be published once, (i) in
a newspaper published in the English language, customarily published on each
Business Day and of general circulation in The City of New York, and (ii) in
a newspaper published in the Spanish language and of general circulation in
Argentina, notice that such money remains unclaimed and that, after a date
specified therein, which shall not be less than 30 days from the date of
such publication, any unclaimed balance of such money then remaining shall be
repaid to the Company.

 

85

 

ARTICLE TWELVE

 

MISCELLANEOUS PROVISIONS

 

SECTION 12.1  Incorporators, Shareholders, Officers and
Directors of Company Exempt from Individual Liability.  Notwithstanding the provisions of Article 34
of the Negotiable Obligations Law or otherwise, no recourse for the payment of
the principal of, premium, if any, on or interest on any of the Debt Securities
or for any claim based thereon or otherwise in respect thereof, and no recourse
under or upon any obligation, covenant or agreement of the Company contained in
this Indenture, or in any Debt Security, or because of the creation of any
Indebtedness represented thereby, shall be had against any incorporator, as
such, or against any past, present or future shareholder, officer, director,
employee, Board of Directors member or controlling person, as such, of the
Company or of any successor, either directly or through the Company or any
successor, under any rule of law, statute or constitutional provision or
by the enforcement of any assessment or by any legal or equitable proceeding or
otherwise, all such liability being expressly waived and released by the
acceptance of the Debt Securities by the Holders thereof and as part of the
consideration for the issuance of the Debt Securities.

 

SECTION 12.2  Provisions of Indenture for the Sole
Benefit of Parties, Paying Agents and Holders.  Nothing in this Indenture or in the Debt
Securities, expressed or implied, shall give or be construed to give to any
Person, other than the parties hereto, any Paying Agent hereunder and their
successors hereunder and the Holders of the Debt Securities, any benefit or any
legal or equitable right, remedy or claim under this Indenture or under any
covenant or provision herein contained, all such covenants and provisions being
for the sole benefit of the parties hereto, any Paying Agent hereunder and
their successors hereunder and of the Holders of the Debt Securities.

 

SECTION 12.3  Successors and Assigns of Company Bound by
Indenture.  All covenants,
stipulations, promises and agreements in this Indenture contained by or on
behalf of the Company shall bind its successors and assigns, whether so
expressed or not.

 

SECTION 12.4  Notices, Etc., to Trustee, Co-Registrar,
Principal Paying Agent, Company and Holders; Waiver.  Any request, demand, authorization,
direction, notice, consent, waiver or act of Holders or other document provided
or permitted by this Indenture to be made upon, given or furnished to, or filed
with,

 

(a)                                  the
Trustee or Co-Registrar by any Holder or by the Company shall be sufficient for
every purpose hereunder if made, given, furnished or filed in writing to or
with the Trustee or Co-Registrar at its Corporate Trust Office, Attention:  Institutional Trust Services, or

 

(b)                                 the
Registrar shall be sufficient for every purpose hereunder if made, given,
furnished or filed in writing to or with the Registrar at its principal office,
currently located at Av. de Mayo 701, Capital Federal, Argentina, or

 

(c)                                  the
Company by the Trustee or by any Holder shall be sufficient for every purpose
hereunder (unless otherwise herein expressly provided) upon receipt if in
writing and mailed, first-class postage prepaid, to the Company addressed to it
at its principal office currently

 

86

 

located at Avalos 2057
(C1431DPM) Buenos Aires, Argentina, or at any other address previously
furnished in writing to the Trustee by the Company.

 

Where this Indenture
provides for notice to Holders of Registered Debt Securities of any event, such
notice shall be sufficiently given (unless otherwise herein expressly provided)
if in writing and mailed, first-class postage prepaid, to each Holder affected
by such event, at his address as it appears in the Debt Security Register, in
each case not later than the latest date and not earlier than the earliest date
prescribed hereunder for the giving of such notice and, shall be published as
may be required by applicable law or, to the extent there are Holders domiciled
in Argentina, (i) in a leading newspaper having general circulation in
Argentina, (ii) for so long as any series of Debt Securities is listed on
the Buenos Aires Stock Exchange, in the Bulletin of the Buenos Aires Stock
Exchange, and (iii) in the Official Gazette of
Argentina.  Any notice so mailed shall be deemed to have
been given on the date of such mailing. 
In any case where notice to Holders of Registered Debt Securities is
given by mail, neither the failure to mail such notice, nor any defect in any
notice so mailed, to any particular Holder shall affect the sufficiency of such
notice with respect to other Holders of Registered Debt Securities or the
sufficiency of any notice to Holders of Bearer Debt Securities given as
provided.  Any notice mailed to a Holder
in the manner herein prescribed shall be deemed to have been received by (i) a
Holder domiciled in Argentina when actually received and (ii) a Holder
domiciled outside of Argentina when so mailed. 
Where this Indenture provides for notice in any manner, such notice may
be waived in writing by the Person entitled to receive such notice, either
before or after the event, and such waiver shall be the equivalent of such
notice.  Waivers of notice by Holders
shall be filed with the Trustee, but such filing shall not be a condition
precedent to the validity of any action taken in reliance upon such waiver.

 

In case by reason of the
suspension of regular mail service or by reason of any other cause it shall be
impracticable to give such notice to Holders of Registered Debt Securities by
mail, then such notification as shall be made with the approval of the Trustee
shall constitute sufficient notification for every purpose hereunder.

 

Except as otherwise
expressly provided herein or otherwise specified with respect to any Debt
Securities pursuant to Section 3.1, where this Indenture provides for
notice to Holders of Bearer Debt Securities of any event, such notice shall be
sufficiently given to Holders of Bearer Debt Securities if published in an Authorized
Newspaper and in such other city or cities as may be specified in such Debt
Securities on a Business Day at least twice, the first such publication to be
not earlier than the earliest date, and not later than the latest date,
prescribed for the giving of such notice. 
Any such notice shall be deemed to have been given on the date of the
first such publication.

 

In case, by reason of the
suspension of publication of any Authorized Newspaper or Authorized Newspapers
or by reason of any other cause it shall be impracticable to publish any notice
to Holders of Bearer Debt Securities as provided above, then such notification
to Holders of Bearer Debt Securities as shall be given in a manner satisfactory
to the Trustee shall constitute sufficient notice to such Holders for every
purpose hereunder.  Neither the failure
to give notice by publication to Holders of Bearer Debt Securities as provided
above, nor any defect in any notice so published, shall affect the sufficiency
of such notice with respect to the other

 

87

 

Holders of Bearer Debt
Securities or the sufficiency of any notice to Holders of Registered Debt
Securities given as provided herein.

 

SECTION 12.5  Officers’ Certificates and Opinions of
Counsel; Statements to Be Contained Therein.  Upon any application or demand by the Company
to the Trustee to take any action under any provision of this Indenture, the
Company shall furnish to the Trustee an Officers’ Certificate stating that all
conditions precedent, if any, provided for in this Indenture relating to the
proposed action have been complied with and an Opinion of Counsel stating that
in the opinion of such counsel all such conditions precedent, if any, have been
complied with, except that in the case of any such application or demand as to
which the furnishing of such documents is specifically required by any
provision of this Indenture relating to such particular application or demand,
no additional certificate or opinion need be furnished.

 

Each certificate or
opinion provided for in this Indenture and delivered to the Trustee with
respect to compliance with a condition or covenant provided for in this
Indenture (other than the Officers’ Certificate provided pursuant to Section 4.14)
shall include (a) a statement that the person making such certificate or
opinion has read such covenant or condition and the definitions herein relating
thereto, (b) a brief statement as to the nature and scope of the
examination or investigation upon which the statements or opinions contained in
such certificate or opinion are based, (c) a statement that, in the
opinion of such person, he has made such examination or investigation as is
necessary to enable him to express an informed opinion as to whether or not
such covenant or condition has been complied with, and (d) a statement as
to whether or not, in the opinion of such person, such condition or covenant
has been complied with.

 

Any certificate,
statement or opinion of an officer of the Company may be based, insofar as it
relates to legal matters, upon a certificate or opinion of or representations
by counsel, unless such officer knows that the certificate or opinion or
representations with respect to the matters upon which his certificate,
statement or opinion may be based as aforesaid are erroneous, or in the
exercise of reasonable care should know that the same are erroneous.  Any certificate, statement or opinion of
counsel may be based, insofar as it relates to factual matters, information
with respect to which is in the possession of the Company, upon the
certificate, statement or opinion of or representations by an officer or
officers of the Company, unless such counsel knows that the certificate,
statement or opinion or representations with respect to the matters upon which
his certificate, statement or opinion may be based as aforesaid are erroneous,
or in the exercise of reasonable care should know that the same are erroneous.

 

Any certificate,
statement or opinion of an officer of the Company or of counsel may be based,
insofar as it relates to accounting matters, upon a certificate or opinion of
or representations by an accountant or firm of accountants in the employ of the
Company unless such officer or counsel, as the case may be, knows that the
certificate or opinion or representations with respect to the accounting
matters upon which his certificate, statement or opinion may be based as
aforesaid are erroneous, or in the exercise of reasonable care should know that
the same are erroneous.

 

Any certificate or
opinion of any independent firm of public accountants filed with the Trustee
shall contain a statement that such firm is independent.

 

88

 

In any case where several
matters are required to be certified by, or covered by an opinion of, any
specified Person, it is not necessary that all such matters be certified by, or
covered by the opinion of, only one such Person, or that they be so certified
or covered by only one document, but one such Person may certify or give an
opinion with respect to some matters and one or more other such Persons as to
other matters, and any such Person may certify or give an opinion as to such
matters in one or several documents.

 

Where any Person is
required to make, give or execute two or more applications, requests, consents,
certificates, statements, opinions or other instruments under this Indenture,
they may, but need not, be consolidated and form one instrument.

 

SECTION 12.6  Payments Due on Saturdays, Sundays and
Holidays.  In any case where any
Interest Payment Date, Redemption Date or Stated Maturity of any Debt Security
shall not be a Business Day, then (notwithstanding any other provision of this
Indenture or of the Debt Securities) payment of principal, premium, if any, interest
or Additional Amounts, if any, need not be made on such date, but may be made
on the next succeeding Business Day with the same force and effect as if made
on the Interest Payment Date, Redemption Date or at the Stated Maturity, provided that no interest shall accrue for the period from
and after such Interest Payment Date, Redemption Date or Stated Maturity, as
the case may be.

 

SECTION 12.7  Conflict with Trust Indenture Act.  If any provision hereof limits, qualifies or
conflicts with a provision of the Trust Indenture Act that is required under
such Act to be a part of and govern this Indenture, the latter provision shall
control.  If any provision of this
Indenture modifies or excludes any provision of the Trust Indenture Act that
may be so modified or excluded, the latter provision shall be deemed to apply
to this Indenture as so modified or to be excluded, as the case may be.

 

SECTION 12.8 
Governing Law.  The
Negotiable Obligations Law governs the requirements for the Debt Securities to
qualify as Obligaciones Negociables thereunder
while such law, together with the Argentine Business Companies Law No. 19,550,
as amended, and other applicable Argentine laws, govern the capacity and
corporate authority of the Company to execute and deliver the Debt Securities
and the authorization of the public offering of the Public Debt Securities by
the CNV.  All other matters in respect of
the Debt Securities and this Indenture, including but not limited to the
statute of limitations applicable thereto, are governed by and shall be
construed in accordance with, the law of the State of New York, United States.

 

SECTION 12.9  Consent to Jurisdiction and Service of
Process.  (a)  The Company
consents to the non-exclusive jurisdiction of the federal and state courts
sitting in the Borough of Manhattan, The City of New York, United States, and
any appellate court from any such court, and waives any immunity from the
jurisdiction of such courts over any suit, action or proceeding that may be
brought in connection with this Indenture or the Debt Securities.  The Company 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 Indenture or the Debt
Securities 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.  The
Company agrees that final judgment in any such suit, action or proceeding
brought in such court shall be conclusive and binding upon the Company and may
be enforced in any

 

89

 

court to the jurisdiction
of which the Company is subject by a suit upon such judgment; provided that service of process is effected upon the
Company in the manner provided by this Indenture.  Notwithstanding the foregoing, any suit,
action or proceeding brought in connection with this Indenture or the Debt
Securities may be instituted in any competent court in Argentina.

 

(b)                                 The
Company agrees that service of all writs, process and summonses in any suit,
action or proceeding brought in connection with this Indenture or the Debt
Securities against the Company 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, New York, New York 10011, whom the Company irrevocably appoints as its
authorized agent for service of process. 
The Company represents and warrants that CT Corporation System has
agreed to act as the Company’s agent for service of process.  The Company agrees that such appointment
shall be irrevocable so long as any of the Debt Securities remain Outstanding
or until the irrevocable appointment by the Company 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
Company 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 Company’s agent for service of process, the Company shall appoint without
delay another such agent and provide prompt written notice to the Trustee 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, service of process upon CT
Corporation System, as the authorized agent of the Company for service of
process, and written notice of such service to the Company, shall be deemed, in
every respect, effective service of process upon the Company.

 

(c)                                  Nothing
in this Section shall affect the right of any party to serve legal process
in any other manner permitted by law or affect the right of any party to bring
any action or proceeding against any other party or its property in the courts
of other jurisdictions.

 

SECTION 12.10 
Counterparts.  This
Indenture may be executed in any number of counterparts, each of which shall be
deemed an original; but all such counterparts shall together constitute but one
and the same instrument.

 

SECTION 12.11  Effect of Headings.  The Article and Section headings
herein and the Table of Contents are for convenience only and shall not affect
the construction hereof.

 

SECTION 12.12 
Separability.  In case any
provision in this Indenture or in the Debt Securities shall be invalid, illegal
or unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.

 

SECTION 12.13  Purchase of Notes by the Company.  The Company may at any time purchase Debt
Securities in the open market, or by tender or private agreement at any
price.  All Debt Securities so purchased
may be held for the account of the Company or may be resold by the Company or
may be delivered by the Company to the Trustee for cancellation.

 

90

 

ARTICLE THIRTEEN

 

REDEMPTION OF DEBT
SECURITIES

 

SECTION 13.1  Optional Redemption.  (a)  If at any time subsequent to
the issuance of Debt Securities of any series, as a result of any change in or
amendment to the laws, regulations or governmental policy having the force of
law or in the official interpretation or application thereof of Argentina (or
of any political subdivision or taxing authority thereof or therein) or any
execution of or amendment to, any treaty or treaties affecting taxation to
which Argentina (or such political subdivision or taxing authority) is a party,
which change or amendment becomes effective after the date of this Indenture,
the Company is required, or would be required on the next succeeding interest
payment date, to pay Additional Amounts in respect of payments on the Debt
Securities of such series and the payment of such Additional Amounts cannot be
avoided by the use of any reasonable measures available to the Company (which
shall not include any adverse modification of the terms of this Indenture or
the Debt Securities of such series), then the Debt Securities of such series
may be redeemed as a whole (but not in part), at the option of the Company, at
any time upon not less than 30 nor more than 90 days’ notice given to
the Holders of the Debt Securities of such series at any time at an amount
equal to 100% of their principal amount together with accrued and unpaid
interest thereon to the date fixed for redemption.

 

(b)                                 In
order to effect a redemption of Debt Securities of any series pursuant to
clause (a) above, the Company shall deliver to the Trustee, at least
45 days prior to the Redemption Date, (i) a certificate signed by two
directors of the Company stating that the obligation to pay such Additional
Amounts cannot be avoided by the Company taking reasonable measures available
to it and (ii) an opinion of independent legal counsel of recognized
standing to the effect that the Company has or will become obligated to pay
such Additional Amounts as a result of such change, amendment or executed or
amended treaty.  Such certificate, once
delivered by the Company to the Trustee, will be irrevocable and upon its
delivery the Company shall be obligated to make the payment or payments
referred to therein.  No notice of
redemption may be given earlier than 90 days prior to the earliest date on
which the Company would be obligated to pay such Additional Amounts were a
payment in respect of the Debt Securities of such series then due.  The certificate shall additionally specify
the Redemption Date and all other information necessary for the publication and
mailing by the Trustee of notices of such redemption.  The Trustee shall be entitled to rely
conclusively upon the information so furnished by the Company in such
certificate and shall be under no duty to check the accuracy or completeness
thereof.

 

(c)                                  The
Company may redeem all or any portion of the Debt Securities of any series,
upon the terms and at the redemption prices set forth therein.  Any redemption of the Debt Securities of any
series at the election of the Company or otherwise shall be made pursuant to
the provisions of Sections 13.2 through 13.4 hereof.

 

SECTION 13.2  Deposit of Redemption Price.  On the Business Day prior to any Redemption
Date, the Company shall deposit with the Trustee or with a Paying Agent (or, if
the Company is acting as its own Paying Agent, segregate and hold in trust as
provided in Section 11.2) an amount of money sufficient to pay the
Redemption Price of, any applicable

 

91

 

Additional Amounts, and
(except if the Redemption Date shall be an Interest Payment Date) any accrued
and unpaid interest on, all the Debt Securities which are to be redeemed on
that date.

 

SECTION 13.3  Debt Securities Payable on Redemption Date.  Notice of redemption having been given as
aforesaid, the Debt Securities so to be redeemed shall, on the Redemption Date,
become due and payable at the Redemption Price therein specified (together with
accrued interest, if any, to the Redemption Date), and from and after such date
(unless the Company shall default in the payment of the Redemption Price and
accrued interest) such Debt Securities shall cease to bear interest and the
coupons for such interest appertaining to any Bearer Debt Securities so to be
redeemed, except to the extent provided below, shall be void.  Upon surrender of any such Debt Security for
redemption in accordance with said notice, such Debt Security shall be paid by
the Company at the Redemption Price, together with accrued and unpaid interest,
if any, to the Redemption Date; provided, however,
that installments of interest on Bearer Debt Securities whose Stated Maturity
is on or prior to the Redemption Date shall be payable only at an office or
agency located outside the United States (except as otherwise provided in Section 4.2)
and, unless otherwise specified as contemplated by Section 3.1, only upon
presentation and surrender of coupons for such interest; provided,
further, however, that installments of interest on Registered Debt
Securities whose Stated Maturity is on or prior to the Redemption Date shall be
payable to the Holders of such Debt Securities, or one or more Predecessor Debt
Securities, registered as such at the close of business on the relevant Record
Dates according to their terms and the provisions of Section 3.7.

 

If any Bearer Debt
Security surrendered for redemption shall not be accompanied by all appurtenant
coupons maturing after the Redemption Date, such Debt Security may be paid
after deducting from the Redemption Price an amount equal to the face amount of
all such missing coupons, or the surrender of such missing coupon or coupons
may be waived by the Company and the Trustee if there be furnished to them such
security or indemnity as they may require to save each of them and any Paying
Agent harmless.  If thereafter the Holder
of such Debt Security shall surrender to the Trustee or any Paying Agent any
such missing coupon in respect of which a deduction shall have been made from
the Redemption Price, such Holder shall be entitled to receive the amount so
deducted; provided, however, that interest
represented by coupons shall be payable only at an office or agency located
outside the United States (except as otherwise provided in Section 4.2)
and, unless otherwise specified as contemplated by Section 3.1, only upon
presentation and surrender of those coupons.

 

If any Debt Security
called for redemption shall not be so paid upon surrender thereof for
redemption, the principal (and premium, if any) shall, until paid, bear
interest from the Redemption Date at the rate provided by the Debt Security.

 

SECTION 13.4  Selection of Debt Securities to Be
Redeemed.  If fewer than all the Debt
Securities of any series are to be redeemed at any time, the Trustee shall
select the particular Debt Securities to be redeemed pro rata or by lot or by
such other method that the Trustee in its sole discretion shall deem to be fair
and appropriate; provided that no Debt Security of
less than U.S.$1,000 in principal amount at maturity shall be redeemed in
part.  The Trustee shall make the
selection from outstanding Debt Securities of such series not previously called
for redemption.  The Trustee may select
for redemption portions of the principal of Debt Securities of such series that
have denominations larger than U.S.$1,000. 
Debt Securities and

 

92

 

portions of them the
Trustee selects shall be in amounts of U.S.$1,000 or an integral multiple of
U.S.$1,000.  Provisions of this Indenture
that apply to Debt Securities called for redemption also apply to portions of
Debt Securities called for redemption. 
The Trustee shall notify the Company promptly of the Debt Securities or
portions of Debt Securities to be redeemed. 
A new Debt Security of the same series in principal amount equal to the
unredeemed portion thereof will be issued in the name of the Holder thereof
upon cancellation of the original Debt Security.

 

ARTICLE FOURTEEN

 

DEFEASANCE AND COVENANT
DEFEASANCE

 

SECTION 14.1  Company’s Option to Effect Defeasance or
Covenant Defeasance.  The Company may
at its option by a resolution of the Board of Directors, at any time, elect to
have either Section 14.2 or Section 14.3 applied to the Outstanding
Debt Securities of any series upon compliance with the conditions set forth
below in this Article Fourteen.

 

SECTION 14.2  Defeasance and Discharge.  Upon the Company’s exercise of the option
provided in Section 14.1 applicable to this Section with respect to
any Debt Securities of or within a series, the Company shall be deemed to have
been discharged from its obligations with respect to such Outstanding Debt
Securities and any related coupons on the date the conditions set forth below
are satisfied (hereinafter, “defeasance”).  For this purpose, such defeasance means that
the Company shall be deemed to have paid and discharged the entire indebtedness
represented by such Outstanding Debt Securities and any related coupons and to
have satisfied all its other obligations under such Debt Securities and any
related coupons and this Indenture insofar as such Debt Securities and any
related coupons are concerned (and the Trustee, at the expense of the Company,
shall execute proper instruments acknowledging the same), except for the
following which shall survive until otherwise terminated or discharged
hereunder:  (a) the rights of
Holders of such Debt Securities and any related coupons to receive, solely from
the trust fund described in Section 14.4 hereof and as more fully set
forth in such Section, payments in respect of the principal of, premium, if
any, on and interest on such Debt Securities and any related coupons when such
payments are due, (b) the Company’s obligations with respect to such Debt
Securities and any related coupons under Sections 3.5, 3.9, 3.10, 4.2
and 11.4 hereof, (c) the Company’s obligations to effect a registered
exchange offer or a private exchange offer, (d) the rights, powers,
trusts, duties and immunities of the Trustee hereunder and (e) this Article Fourteen.  Subject to compliance with this Article Fourteen,
the Company may exercise its option under this Section 14.2
notwithstanding the prior exercise of its option under Section 14.3.

 

SECTION 14.3  Covenant Defeasance.  Upon the Company’s exercise of the option
provided in Section 14.1 applicable to this Section 14.3 with respect
to any Debt Securities of or within a series, the Company shall be released
from its obligations under any covenant contained in Sections 4.5 through
4.17 hereof, inclusive, with respect to such Debt Securities on and after the
date the conditions set forth below are satisfied (hereinafter, “covenant
defeasance”), and such Debt Securities and any related coupons shall
thereafter be deemed not to be “Outstanding” for the purposes of any direction,
waiver, consent or declaration or act of Holders (and the consequences of any
thereof) in connection with such covenants, but

 

93

 

shall continue to be
deemed “Outstanding” for all other purposes hereunder.  For this purpose, such covenant defeasance
means that the Company may omit to comply with and shall have no liability in
respect of any term, condition or limitation set forth in any such Section or
clause, whether directly or indirectly by reason of any reference elsewhere
herein to any such Section or clause or by reason of any reference in any
such Section or clause to any other provision herein or in any other
document and the occurrence of an event specified in subsections 6.1(c) (with
respect to clause (iii) of Section 4.17) and (d) (with
respect to any covenant contained in Sections 4.5 through 4.17,
inclusive) shall not be deemed to be an Event of Default, but the remainder of
this Indenture and such Debt Securities and any related coupons shall be
unaffected thereby.

 

SECTION 14.4  Conditions to Defeasance or Covenant
Defeasance.  The following shall be
the conditions to application of either Section 14.2 or Section 14.3
to the Debt Securities of or within any series then Outstanding and any related
coupons:

 

(a)                                  The
Company shall have irrevocably deposited or caused to be deposited with the
Trustee (or another trustee satisfying the requirements of Section 7.9
hereof who shall agree to comply with the provisions of this Article Fourteen
applicable to it) funds in trust for the purpose of making the following
payments, specifically pledged as security for, and dedicated solely to, the
benefit of the Holders of such Debt Securities and any related coupons, (i) money
in the specified currency of such series in an amount, or (ii) Government
Obligations payable in the specified currency of such series which through the
scheduled payment of principal of and premium, if any, and interest in respect
thereon in accordance with their terms will provide, not later than one day
before the due date of any payment, money in an amount, or (iii) a
combination thereof, sufficient, in the opinion of an internationally
recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee, to pay and discharge, and which
shall be applied by the Trustee (or other qualifying trustee) to pay and
discharge, the principal of, premium, if any, on and each installment of
interest on such outstanding Debt Securities and any related coupons on the
Stated Maturity or on the applicable Redemption Date, as the case may be, of
such principal, premium, if any, or installment of interest in accordance with
the terms of this Indenture and of such Debt Securities and any related
coupons, and such amounts will be applied for such purpose, and the Company
must specify whether such Debt Securities and any related coupons are being
defeased to maturity or to a particular Redemption Date.

 

(b)                                 In
the case of an election under Section 14.2 hereof, the Company shall have
delivered to the Trustee an Opinion of Counsel stating that (i) the
Company has received from, or there has been published by, the Internal Revenue
Service a ruling, or (ii) since the date of this Indenture there has been
a change in the applicable federal income tax law or the interpretation
thereof, in either case to the effect that, and based thereon such opinion
shall confirm that, the holders of the Outstanding Debt Securities of such series
and any related coupons will not recognize income, gain or loss for federal
income tax purposes as a result of such deposit, defeasance and discharge and
will be subject to federal income tax on the same amount, in the same manner
and at the same times as would have been the case if such deposit, defeasance
and discharge had not occurred.

 

94

 

(c)                                  In
the case of an election under Section 14.3 hereof, the Company shall have
delivered to the Trustee an Opinion of Counsel (which may be based on an
Internal Revenue Service ruling), reasonably acceptable to the Trustee, to the
effect that the Holders of the Outstanding Debt Securities of such series and
any related coupons will not recognize income, gain or loss for federal income
tax purposes as a result of such deposit and covenant defeasance and will be
subject to federal income tax on the same amount, in the same manner and at the
same times as would have been the case if such deposit and covenant defeasance
had not occurred.

 

(d)                                 The
Company shall have delivered to the Trustee an Officers’ Certificate to the
effect that the Debt Securities of such series and any related coupons, if then
listed on any securities exchange, will not be delisted as a result of such
deposit.

 

(e)                                  No
Event of Default or event which with notice or lapse of time or both would
become an Event of Default with respect to such Debt Securities and any related
coupons shall have occurred and be continuing on the date of such deposit
(other than a Default or Event of Default resulting from the borrowing of funds
to be applied to such deposit) after giving effect thereto or, with respect to
a Default or Event of Default specified in clauses (i) or (j) of
the first paragraph of Section 6.1, at any time during the period ending
on the 121st day after the date of such deposit (it being understood that this
condition shall not be deemed satisfied until the expiration of such period).

 

(f)                                    Such
defeasance or covenant defeasance shall not cause the Trustee to have a
conflicting interest as defined in Section 7.8 hereof and for purposes of
the Trust Indenture Act with respect to any securities of the Company.

 

(g)                                 Such
defeasance or covenant defeasance shall not result in a breach or violation of,
or constitute a default under, any other material agreement or instrument to
which the Company is a party or by which it is bound.

 

(h)                                 The
Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that all conditions precedent relating to
either the defeasance under Section 14.2 or the covenant defeasance under Section 14.3
(as the case may be) have been complied with.

 

(i)                                     Such
defeasance or covenant defeasance shall not result in the trust arising from
such deposit constituting an investment company as defined in the Investment
Company Act of 1940, as amended, or such trust shall be qualified under such
act or exempt from regulation thereunder.

 

SECTION 14.5  Deposited Money and Government Obligations
to Be Held in Trust; Other Miscellaneous Provisions.  Subject to the provisions of Section 11.4,
all money and Government Obligations (including the proceeds thereof) deposited
with the Trustee (or other qualifying trustee, collectively, for purposes of
this Section 14.5, the “Trustee”) pursuant to Section 14.4 in
respect of Debt Securities of any series and any related coupons shall be held
in trust and applied by the Trustee, in accordance with the provisions of such
Debt Securities and any related coupons and this Indenture, to the payment,
either directly or through any Paying

 

95

 

Agent (including the
Company acting as its own Paying Agent) as the Trustee may determine, to the
Holders of such Debt Securities and any related coupons, of all sums due and to
become due thereon in respect of principal and interest, but such money need
not be segregated from other funds except to the extent required by law.

 

The Company shall pay and
indemnify the Trustee against any tax, fee or other charge imposed on or
assessed against the Government Obligations deposited pursuant to Section 14.4
hereof or the principal and interest received in respect thereof other than any
such tax, fee or other charge which by law is for the account of the Holders of
the Outstanding Debt Securities of such series and any related coupons.

 

Anything in this Article Fourteen
to the contrary notwithstanding, the Trustee shall deliver or pay to the
Company from time to time upon Company Request any money or Government
Obligations held by it as provided in Section 14.4 hereof which, in the
opinion of an internationally recognized firm of independent public accountants
expressed in a written certification thereof delivered to the Trustee, are in
excess of the amount thereof which would then be required to be deposited to
effect an equivalent defeasance or covenant defeasance.

 

SECTION 14.6 
Reinstatement.  If the
Trustee or the Paying Agent is unable to apply any money in accordance with
this Article Fourteen by reason of any order or judgment of any court or
governmental authority enjoining, restraining or otherwise prohibiting such
application, then the Company’s obligations under this Indenture and Debt
Securities of any series and any related coupons shall be revived and
reinstated as though no deposit had occurred pursuant to this Article Fourteen
until such time as the Trustee or Paying Agent is permitted to apply all such
money held in trust pursuant to Section 14.5 in accordance with Section 14.2
or 14.3 hereof; provided, however, that, if the
Company makes any payment of principal of, premium, if any, on or interest on
the Debt Security of any series and any related coupons following the
reinstatement of its obligations, the Company shall be subrogated to the rights
of the Holders of the Debt Securities of such series and any related coupons to
receive such payment from the money held by the Trustee or the Paying Agent.

 

96

 

This Indenture may be signed in any number of
counterparts, each of which so executed shall be deemed to be an original, but
all such counterparts together shall constitute but one and the same
instrument.

 

IN WITNESS WHEREOF, the
parties hereto have caused this Indenture to be duly executed as of the day and
year first above written.

 

	
   

  	
  MULTICANAL S.
  A.,

  
	
   

  	
  Company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  LAW DEBENTURE
  TRUST COMPANY OF

  
	
   

  	
   

  	
  NEW YORK,

  
	
   

  	
   

  	
  Trustee,
  Principal Paying Agent and

  
	
   

  	
   

  	
  Co-Registrar

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  HSBC Bank
  Argentina S.A.,

  
	
   

  	
   

  	
  Registrar and
  Paying Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

97

 

EXHIBIT A

 

[FORM OF FACE OF DEBT SECURITY]

 

[If Regulation S Global Registered Debt Security -
CINS Number                 ]

[If Restricted Global Registered Debt Security - CUSIP Number                   ]

[If Restricted Certificated Debt Security - CUSIP Number                ]

 

No.

 

[Include if Global
Registered Debt Security — UNLESS THIS CERTIFICATE IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK
CORPORATION (“DTC”), EUROCLEAR BANK S.A./N.V. (“EUROCLEAR”) OR CLEARSTREAM
BANKING, SOCIÉTÉ ANONYME (“CLEARSTREAM, BANKING”), TO ISSUER OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC, EUROCLEAR OR CLEARSTREAM,
BANKING (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY
AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC, EUROCLEAR OR
CLEARSTREAM, BANKING), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNERS
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

TRANSFERS OF THIS GLOBAL
REGISTERED DEBT SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN
PART, TO NOMINEES OF CEDE & CO. OR TO A SUCCESSOR THEREOF OR SUCH
SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL REGISTERED DEBT
SECURITY SHALL BE MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN SECTION 3.9(b) OF
THE INDENTURE REFERRED TO ON THE REVERSE HEREOF.]

 

[Include if Debt Security
is a Restricted Global Registered Debt Security — THIS DEBT SECURITY HAS NOT BEEN
REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”) OR ANY STATE SECURITIES LAW, AND MAY NOT BE OFFERED, SOLD, PLEDGED
OR OTHERWISE TRANSFERRED EXCEPT (A) (1) TO A PERSON WHOM THE SELLER
REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF
RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”) PURCHASING FOR ITS OWN ACCOUNT
OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION MEETING
THE REQUIREMENTS OF RULE 144A, (2) IN AN OFFSHORE TRANSACTION MEETING THE
REQUIREMENTS OF RULE 903 OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, (3) TO
AN INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(A)(1),
(2), (3) OR (7) UNDER THE SECURITIES ACT THAT IS ACQUIRING THIS
CERTIFICATE FOR INVESTMENT PURPOSES AND NOT FOR DISTRIBUTION, AND A CERTIFICATE
(THE FORM OF WHICH CAN BE OBTAINED FROM THE TRUSTEE) IS DELIVERED BY THE

 

 

TRANSFEREE TO THE COMPANY
AND THE TRUSTEE, OR (4) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER
THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE) AND (B) IN
ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES OF THE UNITED
STATES.

 

BY ACCEPTANCE OF THESE
DEBT SECURITIES BEARING THE ABOVE LEGEND, WHETHER UPON ORIGINAL ISSUANCE OR
SUBSEQUENT TRANSFER, EACH HOLDER OF THESE DEBT SECURITIES ACKNOWLEDGES THE
RESTRICTIONS ON THE TRANSFER OF THESE DEBT SECURITIES SET FORTH ABOVE AND
AGREES THAT IT SHALL TRANSFER THESE SECURITIES ONLY AS PROVIDED HEREIN AND IN
THE INDENTURE.

 

THE FOREGOING LEGEND MAY BE
REMOVED FROM THESE DEBT SECURITIES ON SATISFACTION OF THE CONDITIONS SPECIFIED
IN THE INDENTURE.]

 

[Include if Debt Security
is a Regulation S Global Registered Debt Security — THIS DEBT SECURITY HAS NOT
BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”).  UNTIL 40 DAYS AFTER THE COMMENCEMENT OF THE OFFERING, AN OFFER OR SALE OF
DEBT SECURITIES WITHIN THE UNITED STATES BY A DEALER (AS DEFINED IN THE
SECURITIES ACT) MAY VIOLATE THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT IF SUCH OFFER OR SALE IS MADE OTHERWISE THAN IN ACCORDANCE WITH
RULE 144A UNDER THE SECURITIES ACT.]

 

[Include if Debt Security
is a Restricted Certificated Debt Security — THIS DEBT SECURITY HAS NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”).  THE HOLDER HEREOF, BY PURCHASING THIS DEBT
SECURITY, AGREES FOR THE BENEFIT OF THE COMPANY THAT THIS SECURITY MAY NOT
BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED (X) PRIOR TO THE THIRD ANNIVERSARY
OF THE ISSUANCE HEREOF (OR ANY PREDECESSOR DEBT SECURITY HERETO) OR (Y) BY ANY
HOLDER THAT WAS AN AFFILIATE OF THE COMPANY AT ANY TIME DURING THE THREE MONTHS
PRECEDING THE DATE OF SUCH TRANSFER, IN EITHER CASE OTHER THAN (1) TO THE
COMPANY, (2) SO LONG AS THIS DEBT SECURITY IS ELIGIBLE FOR RESALE PURSUANT
TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”) TO A PERSON WHOM THE SELLER
REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF
RULE 144A PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE RESALE PLEDGE OR OTHER
TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A (AS INDICATED BY THE BOX
CHECKED BY THE TRANSFEROR ON THE CERTIFICATE OF TRANSFER ON THE REVERSE OF THIS
DEBT SECURITY), (3) IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH
REGULATION S UNDER THE SECURITIES ACT (AS INDICATED BY THE BOX CHECKED BY THE
TRANSFEROR ON THE CERTIFICATE OF TRANSFER ON THE REVERSE OF THIS DEBT
SECURITY), (4) TO AN INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS
DEFINED IN

 

A-2

 

RULE 501(A) (1),
(2), (3) OR (7) UNDER THE SECURITIES ACT (AS INDICATED BY THE BOX
CHECKED BY THE TRANSFEROR ON THE CERTIFICATE OF TRANSFER ON THE REVERSE OF THIS
DEBT SECURITY) THAT IS ACQUIRING THIS DEBT SECURITY FOR INVESTMENT PURPOSES AND
NOT FOR DISTRIBUTION, AND A CERTIFICATE IN THE FORM ATTACHED TO THIS
SECURITY IS DELIVERED BY THE TRANSFEREE TO THE COMPANY AND) THE TRUSTEE, (5) PURSUANT
TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144
(IF APPLICABLE) UNDER THE SECURITIES ACT, OR (6) PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE
WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES.  AN INSTITUTIONAL ACCREDITED INVESTOR HOLDING
THIS DEBT SECURITY AGREES IT WILL FURNISH TO THE COMPANY AND THE TRUSTEE SUCH
CERTIFICATES AND OTHER INFORMATION AS THEY MAY REASONABLY REQUIRE TO
CONFIRM THAT ANY TRANSFER BY IT OF THIS DEBT SECURITY COMPLIES WITH THE
FOREGOING RESTRICTIONS.  THE HOLDER
HEREOF, BY PURCHASING THIS DEBT SECURITY, REPRESENTS AND AGREES FOR THE BENEFIT
OF THE COMPANY THAT IT IS (1) A QUALIFIED INSTITUTIONAL BUYER WITHIN THE
MEANING OF RULE 144A OR (2) AN INSTITUTION THAT IS AN “ACCREDITED INVESTOR”
AS DEFINED IN RULE 501(a) (1), (2), (3) OR (7) UNDER THE
SECURITIES ACT AND THAT IT IS HOLDING THIS DEBT SECURITY FOR INVESTMENT
PURPOSES AND NOT FOR DISTRIBUTION OR (3) A NON-U.S. PERSON OUTSIDE THE UNITED
STATES WITHIN THE MEANING OF (OR AN ACCOUNT SATISFYING THE REQUIREMENTS OF
PARAGRAPH (O) (2) OF RULE 902 UNDER) REGULATION S UNDER THE SECURITIES
ACT.)

 

BY ACCEPTANCE OF THESE
DEBT SECURITIES BEARING THE ABOVE LEGEND, WHETHER UPON ORIGINAL ISSUANCE OR
SUBSEQUENT TRANSFER, EACH HOLDER OF THESE DEBT SECURITIES ACKNOWLEDGES THE
RESTRICTIONS ON THE TRANSFER OF THESE DEBT SECURITIES SET FORTH ABOVE AND
AGREES THAT IT SHALL TRANSFER THESE DEBT SECURITIES ONLY AS PROVIDED IN THE
ABOVE-REFERENCED LETTER AND IN THE INDENTURE.

 

THE FOREGOING LEGEND MAY BE
REMOVED FROM THESE DEBT SECURITIES ON SATISFACTION OF THE CONDITIONS SPECIFIED
IN THE INDENTURE.]

 

[Include if Debt Security
is a Certificated Debt Security — THIS DEBT SECURITY IS A CERTIFICATED DEBT
SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO.]

 

[Include if Debt Security
is a Temporary Global Bearer Debt Security — THIS DEBT SECURITY IS A TEMPORARY
GLOBAL BEARER DEBT SECURITY, WITHOUT COUPONS, EXCHANGEABLE FOR DEFINITIVE
BEARER DEBT SECURITIES WITH COUPONS OR AN INTEREST IN A PERMANENT GLOBAL BEARER
DEBT SECURITY (AS DEFINED IN THE INDENTURE REFERRED TO HEREINAFTER).  THE RIGHTS ATTACHING TO THIS TEMPORARY GLOBAL
BEARER DEBT SECURITY, AND THE CONDITIONS AND PROCEDURES GOVERNING ITS EXCHANGE
FOR DEFINITIVE

 

A-3

 

BEARER DEBT SECURITIES OR
AN INTEREST IN THE PERMANENT GLOBAL BEARER DEBT SECURITY, ARE AS SPECIFIED IN
THE INDENTURE.]

 

[Include in Debt Security
is a Bearer Debt Security — ANY UNITED STATES PERSON WHO HOLDS THIS DEBT
SECURITY WILL BE SUBJECT TO THE LIMITATIONS UNDER THE UNITED STATES INCOME TAX
LAWS, INCLUDING THE LIMITATIONS PROVIDED IN SECTION 165(j) AND 1287(A) OF
THE INTERNAL REVENUE CODE.]

 

A-4

 

MULTICANAL S.A. (INCORPORATED IN BUENOS AIRES,
ARGENTINA, WITH LIMITED LIABILITY (“SOCIEDAD ANÓNIMA”) UNDER THE LAWS OF THE
REPUBLIC OF ARGENTINA ON JULY 26, 1991, WITH A TERM OF DURATION EXPIRING
ON JULY 27, 2090, AND REGISTERED WITH THE PUBLIC REGISTRY OF COMMERCE ON JULY 26,
1991 UNDER NUMBER 5225, BOOK 109 OF VOLUME “A” OF CORPORATIONS, AND WITH
DOMICILE AT AVALOS 2057 (C1431DPM) BUENOS AIRES, ARGENTINA)

 

DEBT SECURITIES ISSUABLE
IN SERIES

 

	
  No.

  	
   

  	
   

  	
  $

  	
   

  

[CUSIP] [CINS] No.

 

[Include if Debt Security
is a Registered Debt Security — Multicanal S.A., a sociedad
anónima duly organized and existing under the laws of Argentina (the
“Company”), for value received, hereby promises to pay to
[     ], or registered assigns, the nominal principal
sum [indicated on Schedule A hereof](2) [of
[       ] U.S. Dollars(3) on
[              ] (or on such earlier date
as the principal sum may become repayable in accordance with the terms and
conditions set forth in the Indenture), and to pay interest thereon from [                   ] or from the most recent
Interest Payment Date to which interest has been paid or duly provided for,
semiannually in arrears on [                  
] and [                   ] of
each year, commencing [                           ] at the rate of
[         ]% per annum, until the
principal hereof is paid or duly provided for, all subject to and in accordance
with the terms and conditions of the Indenture. 
The interest so payable and punctually paid or duly provided for on any
Interest Payment Date will, as provided in such Indenture, be paid to the
Person in whose name this Debt Security (or one or more Predecessor Debt
Securities) is registered at the close of business on [                  ] or [                  ] (whether or not a Business
Day), as the case may be, immediately preceding such Interest Payment Date.

 

Any such interest not so
punctually paid or duly provided for shall forthwith cease to be payable to the
Holder on such Regular Record Date, and such defaulted interest, and (to the
extent lawful) interest on such defaulted interest at the rate borne by the
Debt Securities, may be paid to the Person in whose name this Debt Security (or
one or more Predecessor Debt Securities) is registered at the close of business
on a Special Record Date for the payment of such defaulted interest to be fixed
by the Trustee, notice whereof shall be given to Holders of Debt Securities not
less than 15 days prior to such Special Record Date, or may be paid at any time
in any other lawful manner not inconsistent with the requirements of any
exchange on which the Debt Securities may be listed, and upon such notice as
may be required by such exchange, all as more fully provided in the Indenture.

 

The principal of,
premium, if any, on and interest on this Debt Security shall be payable, and
the transfer of this Debt Security shall be registrable, at the Corporate Trust
Office of Law Debenture Trust Company of New York, as Trustee, Co-Registrar and
Principal Paying

 

(2)                                  Applicable
to Global Debt Securities only.

 

(3)                                  Applicable
to Restricted Certificated Debt Securities only.

 

A-5

 

Agent, in The City of New
York, at the main office of HSBC Bank Argentina S.A., as Registrar and Paying
Agent, in Buenos Aires, Argentina or at the option of the Holder and subject to
any fiscal or other laws and regulations applicable thereto, at the office of
any other Paying Agent appointed by the Company.  The Company shall provide to the Principal
Paying Agent, in funds available on or prior to the Business Day prior to each
date on which a payment of principal of, premium, if any, or any interest on
the Debt Securities shall become due, as set forth herein, such amount in U.S.
dollars as is necessary to make such payment, and the Company hereby authorizes
and directs the Principal Paying Agent from funds so provided to it to make or
cause to be made payment of the principal of and any interest, as the case may
be, on the Debt Securities as set forth herein and in the Indenture; provided that payment with respect to principal of and
premium, if any, interest and Additional Amounts, if any, on any Debt Security
may, at the Company’s option, be made, subject to applicable laws and
regulations, by U.S. dollar check drawn on a bank in The City of New York
mailed to the Holders of the Debt Securities at their respective addresses set
forth in the register of Holders of Debt Securities; provided
further that all payments with respect to Global Debt Securities and
Restricted Certificated Debt Securities the Holders of which have given wire
transfer instructions to the Company will be required to be made by wire
transfer of immediately available funds to the accounts specified by the
Holders thereof.  Unless such designation
is revoked, any such designation made by such Person with respect to such Debt
Security will remain in effect with respect to any future payments with respect
to such Debt Security payable to such Person.]

 

[Include if Debt Security
is a Bearer Debt Security — Multicanal S.A., a sociedad
anónima duly organized and existing under the laws of Argentina (the
“Company”), for value received, hereby promises to pay to
[     ], or registered assigns, the nominal principal
sum [indicated on Schedule A hereof](4) [of
[       ] U.S. Dollars](5) on
[              ] (or on such earlier date
as the principal sum may become repayable in accordance with the terms and
conditions set forth in the Indenture), and to pay interest thereon, against
[presentation of this Debt Security to and endorsement of this Debt Security by
the Depositary(6)] [presentation of the relevant coupons(7)],
from [                   ] or from the
most recent Interest Payment Date to which interest has been paid or duly
provided for, semiannually in arrears on [                  ] and [               ] of each year, commencing
[            ] at the rate of [         ]% per annum, until the principal
hereof is paid or duly provided for, all subject to and in accordance with the
terms and conditions of the Indenture.

 

No payment of principal
of, premium, if any, on and interest on this Debt Security shall be made at any
office of the Company in the United States and no check in payment thereof
which is mailed shall be mailed to an address in the United States, nor shall
any transfer made in lieu of payment by check be made to an account maintained
by the payee with a bank in the United States. 
Notwithstanding the foregoing, such payments may be made at an office or

 

(4)                                  Applicable
to Global Debt Securities only.

 

(5)                                  Applicable
to Restricted Certificated Debt Securities only.

 

(6)                                  Include
in Global Bearer Debt Securities.

 

(7)                                  Include
in certificated Bearer Debt Securities.

 

A-6

 

agency located in the
Unites States if payment of the full amount so payable at each office of each
Paying Agent and each other office outside the United States appointed and
maintained for the purpose pursuant to the Indenture is illegal or effectively
precluded because of the imposition of exchange controls or other similar
restrictions on the full payment or receipt of such amount in Dollars.

 

[Include if Debt Security
is a Certificated Bearer Debt Security — The principal of, premium, if any, on
and interest on this Debt Security shall be payable by check upon presentation
and surrender of this Debt Security or the applicable coupon, as the case may
be, at the office of a Paying Agent located outside the United States as the
Company shall have appointed for the purpose pursuant to the Indenture.  Such offices of the Paying Agent shall
initially be [                                      ],
located on the date hereof at [                            
], and [                                     ], located
on the date hereof at [                                    ].]

 

[Include if Debt Security
is a Permanent Global Bearer Debt Security — The principal of, premium, if any,
on and interest on this Debt Security shall be payable by check or by transfer
to an account maintained by the Holder hereof against presentation and
endorsement of this Debt Security and, in the case of final payment in respect
of this Debt Security, the surrender hereof at the office of a Paying Agent
located outside the United States as the Company shall have appointed for the
purpose pursuant to the Indenture.  A
record of each payment made on this Debt Security, distinguishing between any
payment of principal and any payment of interest, shall be made on this Debt
Security by or on behalf of the Paying Agent to which this Debt Security is
presented for the purpose of making such payment, and such record shall be prima facie evidence that the payment in question has been
made.  Such offices of the Paying Agent
shall initially be [                                      ], located
on the date hereof at [             ],
and [                                    
], located on the date hereof at [                                    ].]

 

[Include if Debt Security
is a Temporary Global Bearer Debt Security — This Temporary Global Bearer Debt
Security is exchangeable only in whole and not in part for [definitive
certificated Bearer Debt Securities with coupons attached] [one or more
permanent Global Bearer Debt Securities] upon request of Euroclear or
Clearstream, Luxembourg, to the Trustee, only (i) on or after the Exchange
Date, and (ii) upon compliance with the procedures set forth in Section 3.9
of the Indenture.  Upon exchange of any
portion of this Temporary Global Bearer Debt Security, the Trustee shall cause
the grid attached hereto to be endorsed to reflect the reduction of its
principal amount by an amount equal to the aggregate principal amount of such
definitive Bearer Debt Securities or of the aggregate principal amount of the
permanent Global Bearer Debt Security, whereupon the principal amount hereof
shall be reduced for all purposes by the amount so exchanged and noted.  Except with respect to the payment of
interest as described in the Indenture, until exchanged in full for definitive
certificated Bearer Debt Securities or interests in a permanent Global Bearer
Debt Security, this Temporary Global Bearer Debt Security shall in all respects
be entitled to the same benefits under the Indenture as duly authenticated and
delivered definitive certificated Bearer Debt Securities or interests in a
permanent Global Bearer Debt Security.]]

 

Interest on the Debt
Securities shall be computed on the basis of a 360-day year consisting of 12
months of 30 days each and, in the case of an incomplete month, the number of
days actually elapsed.

 

A-7

 

All payments of principal
and interest hereunder shall be made exclusively in U.S. dollars or in such
coin or currency of the United States as at the time of payment shall be legal
tender for the payment of public and private debts.

 

This Debt Security has
been issued pursuant to resolutions of an ordinary meeting of shareholders of
the Company adopted on January 22, 2003 and resolutions of the Board of
Directors of the Company adopted at its meetings on [                   ], [                 ], and [               ].

 

This Debt Security is
issued in the English language and contains a Spanish translation of its
original English text.  The text of this
Debt Security has been translated into Spanish by an Argentine certified
translator.

 

Reference is hereby made
to the further provisions of this Debt Security set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as
if set forth at this place.

 

Unless the certificate of
authentication hereon has been executed by the Trustee referred to on the
reverse hereof by manual signature, this Debt Security shall not be valid or
obligatory for any purpose.

 

IN WITNESS WHEREOF, the
Company has caused this instrument to be duly executed.

 

	
   

  	
  MULTICANAL S.A.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

A-8

 

FORM OF
REVERSE OF DEBT SECURITY

 

Debt Securities
Issuable in Series

 

This Debt Security is a
negotiable obligation under the Negotiable Obligations Law and is one of a duly
authorized issue of Debt Securities of the Company designated as its [         ]% Debt Securities due [          ], [limited in aggregate principal
amount with respect to all outstanding Public Debt Securities to
U.S.$300,000,000, or its equivalent in another currency or composite currency](8) (the
“Debt Securities” and each, a “Debt Security”), as may be set
forth from time to time, issued and to be issued under an indenture, dated as
of [         ], [2005] (herein
called the “Indenture”), among the Company, Law Debenture Trust Company
of New York, as Trustee, Co-Registrar and Principal Paying Agent, and HSBC Bank
Argentina S.A. as Registrar and Paying Agent, to which the Indenture and all
indentures supplemental thereto reference is hereby made for a statement of the
respective rights, limitations of rights, duties and immunities thereunder of
the Company, the Trustee and the Holders of the Debt Securities and of the
terms upon which the Debt Securities are, and are to be, authenticated and
delivered.  The terms of the Debt
Securities include those stated in the Indenture and those made part of the
Indenture by reference to the Trust Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb)
as in effect on the date of the Indenture (the “Trust Indenture Act”).  The Debt Securities are subject to all such
terms, and Holders are referred to the Indenture and the Trust Indenture Act
for a statement of those terms.

 

[Include if Debt Security
is a Registered Debt Security — The Debt Securities of this series shall be
issuable only in registered form (“Registered Debt Securities”) without
coupons and, if issued other than as a Global Debt Security, only in minimum
denominations of U.S.$[            ] and integral multiples thereof, if
issued in exchange for beneficial interests in a Regulation S Global Debt
Security, and only in denominations of U.S.$[           ] and integral multiples of
U.S.$[           ] in excess thereof, if
issued in exchange for beneficial interests in a Restricted Global Debt
Security.]

 

[Include if Debt Security
is a Certificated Bearer Debt Security — The Debt Securities of this series
shall be issuable only in bearer form (“Bearer Debt Securities”) with coupons
at the time of issue attached thereto for the amount of interest due on each
Payment Date, in authorized denominations of U.S.$[              ].  Title to Bearer Debt Securities and coupons
shall pass by delivery.]

 

The Indebtedness
evidenced by the Debt Securities will constitute the direct, unsecured and
unconditional unsubordinated Indebtedness of the Company and will rank pari passu in right of payment without any preference among
themselves.  The payment obligations of
the Company under the Debt Securities will at all times rank at least equally
in priority of payment with all other present and future unsecured and
unsubordinated Indebtedness of the

 

(8)                                  Applicable
to Public Debt Securities only.

 

A-9

 

Company and senior in
priority of payment with all other present and future Subordinated Indebtedness
of the Company from time to time outstanding.

 

Form, Denomination and
Registration

 

All Debt Securities shall
be issuable in such denominations as shall be specified as contemplated by Section 3.1
of the Indenture.  With respect to Debt
Securities denominated in Dollars, in the absence of any such provisions, the
Registered Debt Securities, other than Registered Debt Securities issued in
global form (which may be of any denomination), shall be issuable in
denominations of U.S.$1,000 and any integral multiple thereof and the Bearer
Debt Securities, other than the Bearer Debt Securities issued in global form
(which may be of any denomination which is an integral multiple of U.S.$1,000),
shall be issuable in a denomination of U.S.$5,000, provided,
however, that Restricted Certificated Debt Securities originally
purchased by or transferred to Institutional Accredited Investors that are not “qualified
institutional buyers” (as defined under Rule 144A under the Securities
Act) other than in connection with a registered exchange or an effective shelf
registration statement shall be subject to minimum denominations of
U.S.$200,000 or an integral denomination of U.S.$1,000 in excess thereof.  No service charge shall be made for any
registration of transfer or exchange of Debt Securities, but the Trustee may
require payment of a sum sufficient to cover any tax or other governmental
charge payable in connection therewith.

 

Payment; Paying Agents
and Transfer Agent

 

The principal of,
premium, if any, on and interest on the Registered Debt Securities shall be
payable, and the transfer of such Registered Debt Securities will be
registrable, at the corporate trust office of the Trustee in the Borough of
Manhattan, The City of New York, at the main office of the Paying Agent in
:Luxembourg, at the main office of the Paying Agent in Argentina and, at the
option of the Holder of such Registered Debt Securities and subject to any
fiscal or other laws and regulations applicable thereto, at the office of any
other Paying Agents appointed by the Company. 
Payments with respect to principal of the Debt Securities will be made
only against surrender of such Debt Securities at the office of the Trustee in
The City of New York or at the main office of the Paying Agent in
Argentina.  Payment with respect to
principal, premium, if any, and interest with respect to any Debt Security may,
at the Company’s option, be made, subject to applicable laws and regulations,
by U.S. dollar check drawn on a bank in The City of New York mailed to the
Holders of the Debt Securities at their respective addresses set forth in the
Debt Securities Register provided that
all payments with respect to Global Debt Securities and Restricted Certificated
Debt Securities the Holders of which have given wire transfer instructions to
the Company will be required to be made by wire transfer of immediately
available funds to the accounts specified by the Holders thereof.  Unless such designation is revoked, any such
designation made by such Person with respect to such Debt Security will remain
in effect with respect to any future payments with respect to such Debt
Security payable to such Person.

 

The principal of,
premium, if any, on and interest on the Bearer Debt Securities shall be payable
at the specified offices of any Paying Agent located outside the United States

 

A-10

 

appointed by the Company
for such purpose.  Payment in respect of
interest on each Interest Payment Date on Bearer Debt Securities and certain
Additional Amounts will be made only against surrender of the coupon relating
to such Interest Payment Date.  Unless
otherwise specified with respect to any Debt Securities, pursuant to Section 3.1,
no payment with respect to any Bearer Debt Securities will be made at any
office or agency of the Company in the United States or by check mailed to any
address in the United States or by transfer to an account maintained with a bank
located in the United States. 
Notwithstanding the foregoing, payments of principal, premium, if any,
and interest in respect of Bearer Debt Securities payable in Dollars will be
made at the office of the Principal Paying Agent in The City of New York, New
York, if (but only if) payment of the full amount thereof in Dollars at all
offices or agencies located outside the United States is illegal or effectively
precluded by exchange controls or other similar restrictions.

 

Any money deposited with
the Trustee or any Paying Agent in trust for the payment of the principal of,
or premium, if any, interest or Additional Amounts, if any, on any Debt
Security and remaining unclaimed for two years after such principal, premium,
if any, interest or Additional Amounts, if any, has become due and payable
shall be repaid to the Company on Company Request; and the Holder of such Debt
Security shall thereafter, as an unsecured general creditor, look only to the
Company for payment thereof, and all liability of the Trustee or such Paying
Agent with respect to such trust money shall thereupon cease; provided, however, that the Trustee or such Paying Agent,
before being required to make any such repayment, may at the expense of the
Company cause to be published once, (i) in a newspaper published in the
English language, customarily published on each Business Day and of general
circulation in The City of New York, and (ii) in the Official
Gazette of Argentina and in a newspaper published in the Spanish
language and of general circulation in Argentina, notice that such money
remains unclaimed and that, after a date specified therein, which shall not be
less than 30 days from the date of such publication, any unclaimed balance of
such money then remaining shall be repaid to the Company.

 

If any payment on a Debt
Security is due on a day that is, at any place of payment, a day on which
banking institutions are authorized or obligated by law or executive order to
close, then, at each such place of payment, such payment need not be made on
such day but may be made on the next succeeding day that is not, at such place
of payment, a day on which banking institutions are authorized or obligated by
law or executive order to close, with the same force and effect as if made on
the date for such payment, and no interest will accrue for the period from and
after such due date to such next succeeding day that is not, at such place of
payment, a day on which banking institutions are authorized or obligated by law
or executive order to close.

 

Payments of Additional
Amounts

 

All payments by the
Company in respect of the Debt Securities will be made free and clear of and
without deduction or withholding for or on account of any present or future
taxes, duties, levies, imposts, assessments or other charges (including
penalties, interest and other additions thereto) that are imposed by or on
behalf of any political subdivision or territory or possession of Argentina or
any authority or agency therein or thereof having power to tax

 

A-11

 

 

(“Taxes”)
unless such withholding or deduction is required by law.  If the Company is required by law to make any
such withholding or deduction, the Company will pay to any Holder such
additional amounts (“Additional Amounts”) as may be necessary in order
that every net payment made by the Company on the Holder’s Debt Security after
deduction or withholding for or on account of any such present or future Taxes
will not be less than the amount then due and payable on such Debt
Security.  The foregoing obligation to
pay Additional Amounts, however, will not apply to (i) any Taxes that
would not have been imposed but for the existence of any present or former
connection between such Holder and Argentina other than the mere receipt of
such payment or the ownership or holding of such Debt Security; (ii) any
Taxes that would not have been imposed but for the presentation by the Holder
of such Debt Security for payment on a date more than 15 days after the date on
which such payment became due and payable or the date on which payment thereof
is duly provided for, whichever occurs later; (iii) if the beneficial
owner of such Debt Security had been the Holder of the Debt Security and would
not be entitled to the payment of Additional Amounts; (iv) any Taxes
required to be deducted or withheld by any paying agent from a payment on a
Debt Security, if such payment can be made without such deduction or
withholding by any other paying agent; or (v) any Taxes that would not
have been imposed but for the failure of the Holder to comply with any
applicable certification, documentation, information or other reporting
requirement concerning the nationality, residence, identity or connection with
the taxing jurisdiction of the Holder or beneficial owner of such Debt
Security.

 

Any reference herein to
principal and/or interest shall be deemed also to refer to any Additional
Amounts which may be payable under the undertakings described in this
paragraph, and express reference to the payment of Additional Amounts (if
applicable) in any provisions hereof shall not be construed as excluding
Additional Amounts in those provisions hereof where such express reference is
not made.

 

In addition, the Company
agrees to pay any stamp, issue, registration, documentary or other similar
taxes and duties, including interest and penalties that may be imposed by
Argentina or the United States in connection with the creation, issue and
offering of this Debt Security.

 

Redemption for Tax
Reasons

 

If at any time subsequent
to the issuance of Debt Securities of any series, as a result of any change in
or amendment to the laws, regulations or governmental policy having the force
of law or in the official interpretation or application thereof of Argentina
(or of any political subdivision or taxing authority thereof or therein) or any
execution of or amendment to, any treaty or treaties affecting taxation to
which Argentina (or such political subdivision or taxing authority) is a party,
which change or amendment becomes effective after the date of the Indenture,
the Company is required, or would be required on the next succeeding interest
payment date, to pay Additional Amounts in respect of payments on the Debt
Securities of such series and the payment of such Additional Amounts cannot be
avoided by the use of any reasonable measures available to the Company (which
shall not include any adverse modification of the terms of the Indenture or the
Debt Securities of such series), then the Debt Securities of such series may be
redeemed as a whole (but not in part), at the option of the Company, at any

 

A-12

 

time
upon not less than 30 nor more than 90 days’ notice given to the Holders of the
Debt Securities of such series at any time at an amount equal to 100% of their
principal amount together with accrued and unpaid interest thereon to the date
fixed for redemption.

 

In order to effect a
redemption of Debt Securities of any series pursuant to clause (a) above,
the Company shall deliver to the Trustee, at least 45 days prior to the
Redemption Date, (i) a certificate signed by two directors of the Company
stating that the obligation to pay such Additional Amounts cannot be avoided by
the Company taking reasonable measures available to it and (ii) an opinion
of independent legal counsel of recognized standing to the effect that the
Company has or will become obligated to pay such Additional Amounts as a result
of such change, amendment or executed or amended treaty.  Such certificate, once delivered by the
Company to the Trustee, will be irrevocable and upon its delivery the Company
shall be obligated to make the payment or payments referred to therein.  No notice of redemption may be given earlier
than 90 days prior to the earliest date on which the Company would be obligated
to pay such Additional Amounts were a payment in respect of the Debt Securities
of such series then due.  The certificate
shall additionally specify the Redemption Date and all other information
necessary for the publication and mailing by the Trustee of notices of such
redemption.  The Trustee shall be
entitled to rely conclusively upon the information so furnished by the Company
in such certificate and shall be under no duty to check the accuracy or
completeness thereof.

 

Purchase by the Company

 

The Company may at any
time purchase Debt Securities in the open market or by tender or private
agreement at any price.  All Debt
Securities so purchased may be held for the account of the Company or may be
resold by the Company or may be delivered by the Company to the Trustee for
cancellation.

 

Certain Covenants

 

1.             Limitation
on Indebtedness.

 

Under the terms of the
Indenture, so long as any of the Debt Securities of any series are outstanding,
the Company will not, and will not permit any of its Subsidiaries to directly
or indirectly Incur any Indebtedness (including Acquired Indebtedness); provided that the Company (but not any
Subsidiary of the Company) may Incur Indebtedness (including Acquired
Indebtedness) and a Subsidiary of the Company may Incur Acquired Indebtedness
if, after giving effect to the application of the Incurrence of any such
Indebtedness and the receipt and application of the proceeds therefrom, the
ratio of Total Consolidated Indebtedness to Annualized Pro Forma Consolidated
Operating Cash Flow would be less than or equal to [    ]
to 1.0.

 

The foregoing limitations
on the Incurrence of Indebtedness will not apply to:

 

(i)            the Incurrence by the Company of Permitted Indebtedness;

 

A-13

 

(ii)           the Incurrence by any Subsidiary of the Company of Permitted
Subsidiary Indebtedness;

 

(iii)          the
Incurrence of Indebtedness by the Company (but not any Subsidiary of the
Company) other than Indebtedness described in the foregoing clause (i), which
Indebtedness when added to the then outstanding Indebtedness previously
Incurred under this clause (iii) and the outstanding Indebtedness of
Subsidiaries of the Company previously Incurred under clause (iv) below,
does not exceed, as of the date of determination, U.S.$25
million in aggregate principal amount; and

 

(iv)          the
Incurrence of Indebtedness by Subsidiaries of the Company which Indebtedness, (A) when
added to the outstanding Indebtedness of Subsidiaries of the Company previously
Incurred under this clause (iv), does not exceed, as of the date of
determination, U.S.$10 million in aggregate principal amount, and (B) when
added to the outstanding Indebtedness of the Company previously Incurred under
clause (iii) above and the outstanding Indebtedness of Subsidiaries of the
Company previously Incurred under this clause (iv), does not exceed, as of the
date of determination, U.S.$25 million in aggregate principal amount.

 

2.             Limitation
on Dividends and Other Payment Restrictions Affecting Significant Subsidiaries

 

Under the terms of the
Indenture, so long as any of the Debt Securities of any series are outstanding,
the Company will not, and will not permit any Significant Subsidiary to, create
or otherwise cause or suffer to exist or become effective any consensual
encumbrance or consensual restriction of any kind on the ability of any
Significant Subsidiary to (i) pay dividends or make any other
distributions permitted by applicable law to the Company or any Significant
Subsidiary on its Capital Stock or with respect to any other interest or
participation in, or measured by, its profits, (ii) pay any Indebtedness
or other obligation owed to the Company or any other Significant Subsidiary, (iii) make
loans or advances to the Company or any other Significant Subsidiary or (iv) sell,
lease or transfer any of its property or assets to the Company or any other
Significant Subsidiary.

 

The foregoing provisions
shall not restrict (A) in the case of clause (i), (ii), (iii) or
(iv), any such encumbrance or restriction (I) existing under the Indenture and
the initial series of Debt Securities issued under the Indenture; (II) existing
under or by reason of applicable law; (III) existing under any instrument
governing Acquired Indebtedness or Capital Stock of any Person or the property
or assets of such Person acquired by the Company or any Significant Subsidiary
and existing at the time of such acquisition (except to the extent such
Acquired Indebtedness was Incurred in connection with or in contemplation of
such acquisition), which encumbrance or restriction is not applicable to any
Person or the property or assets of any Person other than such Person or the
property or assets of such Person so acquired; (IV) existing under any
agreement or instrument that refinances an Indebtedness or replaces, renews or
amends an agreement or instrument containing an encumbrance or restriction that
is permitted by clauses (I) and (III) above, provided
that the terms and conditions of any such restrictions taken as a whole are not
less favorable to the Holders than those under or pursuant to the Indebtedness
being refinanced or the agreements or instruments being replaced, renewed or
amended; or (V) with

 

A-14

 

respect to a Significant
Subsidiary and imposed pursuant to an agreement that has been entered into for
the sale or disposition of all or substantially all of the Capital Stock of, or
property and assets of, such Significant Subsidiary; or (B), in the case of
clause (iv) only, any such encumbrance or restriction (I) that restricts
in a customary manner the subletting, assignment or transfer of any property or
asset subject to a lease or license, or (II) existing by virtue of any transfer
of, agreement to transfer, option or right with respect to, or Lien on, any
property or assets of the Company or any Significant Subsidiary not otherwise
prohibited by the Indenture.  Nothing
contained in this paragraph shall prevent the Company or any Significant Subsidiary
from (1) creating, incurring, assuming or suffering to exist any Liens
otherwise permitted under the “Limitation on Liens” covenant or (2) restricting
the sale or other disposition of property or assets of the Company or any of
its Significant Subsidiaries that secure Indebtedness of the Company or any
Significant Subsidiary, subject to compliance with the “Limitation on Asset
Sales” covenant.

 

3.             Limitation
on the Issuance and Sale of Capital Stock of Significant Subsidiaries

 

Under the terms of the
Indenture, the Company will not sell, and will not permit any Significant
Subsidiary, directly or indirectly, to issue or sell, any shares of Capital
Stock of a Significant Subsidiary (including options, warrants or other rights
to purchase shares of such Capital Stock) except (i) to the Company or a
Wholly-Owned Subsidiary that, at the time of such sale, is a Significant
Subsidiary, (ii) if, immediately after giving effect to such issuance or
sale, such Significant Subsidiary would no longer constitute a Significant
Subsidiary, (iii) in the case of issuances of Capital Stock by a
Significant Subsidiary if, after giving effect to such issuance, the Company
maintains its percentage ownership of such Significant Subsidiary, (iv) the
issuance to or ownership by directors of directors’ qualifying shares or the
issuance to or ownership by a Person of Capital Stock of any Significant
Subsidiary, to the extent mandated by applicable law, or (v) the issuance
or transfer of Capital Stock of a Significant Subsidiary to the seller or
transferor of a Cable/Telecommunications Business, provided that after giving effect to any such issuance or
transfer, the Company holds at least 51% of the Capital Stock (including 51% of
the Voting Stock) of any such Significant Subsidiary, and provided further that in the case of
clauses (ii), (iii) and (v) above, any such issuance or sale shall
comply with the “Limitation on Asset Sales” covenant.

 

4.             Limitation
on Issuances of Guarantees by Subsidiaries

 

Under the terms of the
Indenture, the Company will not permit any Subsidiary of the Company, directly
or indirectly, to Guarantee any Indebtedness of the Company (“Guaranteed
Indebtedness”), unless (i) such Subsidiary simultaneously executes and
delivers a supplemental indenture to the Indenture providing for a Guarantee by
such Subsidiary (a “Subsidiary Guarantee”) of payment of the Debt
Securities and (ii) such 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 Company
or any other Subsidiary of the Company as a result of any payment by such
Subsidiary under its Subsidiary Guarantee; provided
that this paragraph shall not be applicable to any Guarantee of any Subsidiary
of the Company that (x) exists at the time such Person becomes a Subsidiary of
the Company and (y) was not Incurred in connection with, or in contemplation
of, such Person

 

A-15

 

becoming
a Subsidiary of the Company.  If the
Guaranteed Indebtedness is pari passu with
the Debt Securities, then the Guarantee of such Guaranteed Indebtedness shall
be pari passu with, or
subordinated to, the Subsidiary Guarantee. 
If the Guaranteed Indebtedness is subordinated to the Debt Securities,
then the Guarantee of such Guaranteed Indebtedness shall be subordinated to the
Subsidiary Guarantee at least to the extent that the Guaranteed Indebtedness is
subordinated to the Debt Securities.

 

Notwithstanding the
foregoing, any Subsidiary Guarantee by a Subsidiary of the Company shall
provide by its terms that it shall be automatically and unconditionally
released and discharged upon (i) any sale, exchange or transfer, to any
Person not an Affiliate of the Company, of all of the Company’s and each of its
Subsidiary’s Capital Stock in, or all or substantially all the assets of, such
Subsidiary (which sale, exchange or transfer is not in contravention of the “Limitation
on Asset Sales” covenant and is not otherwise prohibited hereby) or (ii) the
release or discharge of the Guarantee which resulted in the creation of such
Subsidiary Guarantee, except a discharge or release by or as a result of
payment under such Guarantee.

 

5.             Limitation
on Transactions with Shareholders and Affiliates

 

Under the terms of the
Indenture, the Company will not, and will not permit any Significant Subsidiary
to, directly or indirectly, conduct any business, enter into, renew or extend
any transaction (including, without limitation, the purchase, sale, lease,
exchange or transfer of property or assets, the rendering of any service, or
the making of any payment, loan, advance or guarantee) with, or for the benefit
of, any holder (or any Affiliate of such holder) of 10% or more of the Capital
Stock of the Company or with any Affiliate of the Company or of any Significant
Subsidiary (together, “Related Persons” and each, a “Related Person”),
unless the terms to the Company or such Significant Subsidiary (i) are at
least as favorable to the Company or such Significant Subsidiary as those that
could be obtained at the time of such transaction in arm’s length dealings with
a Person who is not a Related Person, and (ii) in the case of any
transaction (or series of transactions) with a Related Person involving
aggregate payments made on or after the Issue Date in excess of U.S.$10 million
in any fiscal year, shall be approved by a majority of the disinterested
members of the Board of Directors of the Company, or if no such disinterested
directors exist with respect to such transaction (or series of transactions),
shall be confirmed by an opinion of an Independent Financial Advisor to be
fair, from a financial point of view, to the Company or such Significant
Subsidiary.

 

The foregoing limitation
does not limit, and shall not apply to (i) any transaction between the
Company and any of its Significant Subsidiaries or between Significant
Subsidiaries, (ii) payment of reasonable and customary compensation and
fees to directors of the Company and the Significant Subsidiaries who are not
employees of the Company or any Significant Subsidiary, or (iii) the grant
of stock options or similar rights to acquire Capital Stock (other than
Disqualified Stock) to employees and directors of the Company pursuant to plans
approved by the Board of Directors, provided
that, in the aggregate, the shares of Capital Stock underlying such options or
similar rights issued since the Issue Date (exclusive of any shares of Capital
Stock or similar rights required to be issued by law) shall not exceed 5% of
the outstanding Common Stock of the Company on a fully diluted basis at the
date of determination.

 

A-16

 

6.             Limitation
on Liens

 

Under the terms of the
Indenture, the Company will not, and will not permit any Subsidiary of the Company
to create, incur, assume or suffer to exist any Liens of any kind (other than
Permitted Liens) against or upon any of its property or assets (including any
shares of Capital Stock), now owned or hereafter acquired, or any proceeds
therefrom securing any Indebtedness unless provision is made directly to secure
the Debt Securities equally and ratably by a Lien on such property, assets or
proceeds with (or, if the obligation or liability to be secured by such Lien is
Subordinated Indebtedness, prior to) the obligation or liability secured by
such Lien.

 

7.             Limitations
on Sale and Leaseback Transactions

 

Under the terms of the
Indenture, the Company will not, and will not permit any of its Subsidiaries
to, directly or indirectly, enter into, assume, guarantee or otherwise become
liable with respect to any Sale and Leaseback Transaction, unless:  (i) the net proceeds from such
transaction are at least equal to the Fair Market Value of the property being
transferred and (ii) such transaction shall comply with the “Limitation on
Asset Sales” covenant.

 

8.             Limitation
on Asset Sales

 

Under the terms of the
Indenture, the Company will not, and will not permit any of its Subsidiaries to
make any Asset Sale that would result in a Material Adverse Effect occurring.

 

9.             Reports
to Holders

 

Under the terms of the
Indenture, the Company covenants to deliver to the Trustee:

 

(a)           (i) annual
consolidated financial statements with a report from a major internationally
recognized independent public accountant with respect to such year within 180
days after the end of the fiscal year and (ii) quarterly consolidated
financial statements within 60 days after the end of each of the first three
fiscal quarters;

 

(b)           such additional information as the Company has filed with
any regulatory authority with jurisdiction over the Company;

 

(c)           written
notice of the occurrence of any Default or Event of Default within ten Business
Days of the Company becoming aware of any such Default or Event of Default; and

 

(d)           written
certification, on or before a date not more than 90 days after the end of each
fiscal year, that a review has been conducted of the activities of the Company
and its Subsidiaries, and of the Company’s and its Subsidiaries’ performance
under the Indenture, and that the Company has, to the best of their knowledge,
fulfilled all obligations under the Indenture, or, if there has been a default
in the fulfillment of any such obligation, specifying each such default and the
nature and status thereof.

 

A-17

 

Delivery of such reports,
information and documents to the Trustee is for informational purposes only and
the Trustee’s receipt of such shall not constitute constructive notice of any
information contained therein or determinable from information contained
therein, including the Company’s compliance with any of its covenants hereunder
(as to which the Trustee is entitled to rely exclusively on Officers’
Certificates).

 

10.           Consolidation,
Merger and Sale of Assets

 

Under the terms of the
Indenture, the Company shall not consolidate with, merge with or into, or sell,
convey, transfer, lease or otherwise dispose of all or substantially all of its
property and assets (as an entirety or substantially an entirety in one
transaction or a series of related transactions) to, any Person (other than a
consolidation or merger with or into a Wholly-Owned Subsidiary which, at the
time of such consolidation or merger, is a Significant Subsidiary with a
positive net worth; provided that,
in connection with any such merger or consolidation, no consideration (other
than Common Stock in the surviving Person or the Company) shall be issued or
distributed to the stockholders of the Company) or permit any Person to merge
with or into the Company unless:  (i) the
Company shall be the continuing Person, or the Person (if other than the
Company) formed by such consolidation or into which the Company is merged or
that acquired or leased such property and assets of the Company shall expressly
assume, by a supplemental indenture, executed and delivered to a Responsible
Officer of the Trustee, all of the obligations of the Company under the
Indenture; (ii) immediately after giving effect to such transaction, no
Default or Event of Default shall have occurred and be continuing; (iii) (A) immediately
after giving effect to such transaction will have Consolidated Net Worth
immediately after the transaction equal to or greater than the Consolidated Net
Worth of the Company immediately preceding the transaction or (B) such
transaction will involve another Person engaged in substantially the same line
of business in Argentina; and (iv) the Company delivers to the Trustee an
Officers’ Certificate (attaching the arithmetic computations to demonstrate
compliance with clause (iii)) and an opinion of Argentine counsel, in each case
stating that such consolidation, merger or transfer and such supplemental
indenture complies with clause (i) of this provision and that all
conditions precedent provided for herein relating to such transaction have been
complied with.

 

Events of Default

 

The following events will be defined as “Events of
Default” for the Indenture:

 

(a)           failure to pay principal of or premium, if any, on any of
the Debt Securities when the same shall become due and payable at maturity,
upon acceleration, redemption or otherwise;

 

(b)           failure to pay interest, or Additional Amounts, if any, on
any of the Debt Securities when the same shall become due and payable, and such
failure continues for a period of 30 days;

 

(c)           failure to perform or comply with the “Consolidation, Merger
and Sale of Assets” covenant;

 

A-18

 

(d)           failure to
perform or breach of any other covenant or agreement in the Indenture or under
this Debt Security (other than those referred to in clauses (a), (b) and (c) above)
and such failure or breach continues for a period of 30 consecutive days after
written notice shall have been given to the Company by the Trustee or to the
Company and the Trustee by the Holders of at least 25% in aggregate principal
amount of the Debt Securities then outstanding;

 

(e)           the
occurrence with respect to any issue or issues of Indebtedness of the Company
or any Significant Subsidiary having an outstanding principal amount of U.S.$5 million
or more (or its equivalent in other currencies) in the aggregate for all such
issues of all such Persons, whether such Indebtedness now exists or shall
hereafter be created, of (I) an event of default that has caused such
Indebtedness to become, or the holders thereof to declare such Indebtedness to
be, due and payable prior to its Stated Maturity and/or (II) the failure to
make a payment of principal when such payment is due and payable;

 

(f)            one or
more final judgments or orders, for the payment of money in excess of U.S.$5
million, either individually or in the aggregate for all such final judgments
or orders, shall be rendered against the Company or any Significant Subsidiary
or any of their respective properties and shall not be paid or discharged, and
there shall have been a period of 60 consecutive days following entry of the
final judgment or order that causes the aggregate amount for all such final
judgments or orders outstanding and not paid or discharged against all such
Persons to exceed U.S.$5 million during which a stay of enforcement of such
final judgments or orders, by reason of a pending appeal or otherwise, shall
not be in effect;

 

(g)           any
government or governmental authority shall have condemned, nationalized,
seized, or otherwise expropriated all or any substantial portion of the assets
or property of the Company or any Significant Subsidiary or the share capital
of the Company or any Significant Subsidiary, or shall have assumed custody or
control of such assets or property or of the business or operations of the
Company or any Significant Subsidiary or of the share capital of the Company or
any Significant Subsidiary, or shall have taken any action that would prevent
the Company or any Significant Subsidiary or its officers from carrying on its
business or operations or a substantial part thereof for a period of longer
than 60 consecutive days and the result of any such action shall materially
prejudice the ability of the Company to perform its obligations under the Debt
Securities and, in each case, the Company shall have received written notice
thereof from the Trustee at the request of any Holder of a Debt Security as to
which such event shall, upon such notice, constitute an Event of Default;

 

(h)           the Argentine Government shall declare a general suspension
of payment or a moratorium on the payment of debt of the Company (which does
not expressly exclude the Debt Securities);

 

(i)            the
Company or any Significant Subsidiary (I) is declared by a court of competent
jurisdiction to be insolvent or bankrupt or unable to pay its debts, (II)
commences or consents to the commencement of a case under any applicable
bankruptcy, insolvency or other similar law now or hereafter in effect, (III)
makes a general assignment or an arrangement or composition with or for the
benefit of creditors, or (IV) admits in writing its inability to pay its

 

A-19

 

debts
generally as they become due, or (V) takes corporate action in furtherance of
any of the foregoing;

 

(j)            an order
or decree is made or an effective resolution passed for relief against the
Company or a Significant Subsidiary under any applicable bankruptcy law, or for
the winding-up or dissolution of the Company or any Significant Subsidiary or
adjudging the Company or any Significant Subsidiary bankrupt or insolvent under
any applicable bankruptcy law and in each case such order or decree remains
unstayed and in effect for a period of 60 consecutive days, or the Company or
any Significant Subsidiary ceases or threatens to cease to carry on all or a
material part of its business or operations, except for the purpose of and
followed by a reconstruction, amalgamation, reorganization (“concurso preventivo” or “concordato”), merger or consolidation in
the case of a Significant Subsidiary, whereby the undertaking and the assets of
such Subsidiary, or all of the undertaking and assets relating to the Company’s
direct or indirect shareholding in such Subsidiary, as the case may be, are
transferred to or otherwise vested in the Company or any other Significant
Subsidiary or Subsidiary which as a result of such transfer would become a
Significant Subsidiary; or

 

(k)           it becomes
unlawful for the Company to perform or comply with any one or more of its
obligations under any of the Debt Securities or the Indenture, and such
unlawfulness continues for a period of 60 consecutive days after written notice
shall have been given to the Company by the Trustee or to the Company and the
Trustee by the Holders of at least 25% in aggregate principal amount of the
Debt Securities then outstanding.

 

If an Event of Default
(other than an Event of Default specified in clause (i) or (j) above that
occurs with respect to the Company) occurs and is continuing under the
Indenture, the Trustee thereunder or the Holders of at least 25% in aggregate
principal amount then outstanding of the Debt Securities, by written notice to
the Company (and to the Trustee if such notice is given by the Holders), may,
and the Trustee at the request of such Holders shall, declare the Debt
Securities to be immediately due and payable at 100% of the principal amount
thereof, plus accrued and unpaid interest thereon, if any, to the date of such
declaration.  Upon a declaration of
acceleration, such principal, premium if any, and accrued interest shall be
immediately due and payable.  In the
event of a declaration of acceleration because an Event of Default set forth in
clause (e) above has occurred and is continuing, such declaration of
acceleration shall be automatically rescinded and annulled if the event of
default triggering such Event of Default pursuant to clause (e) shall be
remedied or cured by the Company and/or the relevant Subsidiaries or waived by
the holders of the relevant Indebtedness within 30 days after the declaration
of acceleration with respect thereto.  If
an Event of Default specified in clause (i) or (j) above occurs with
respect to the Company, the Debt Securities then outstanding shall ipso facto
become and be immediately due and payable at 100% of the outstanding principal
amount thereof, plus premium, if any, thereon and accrued and unpaid interest
thereon in each case without any declaration or other act on the part of the
Trustee or any Holder.  The Holders of at
least a majority in principal amount of the outstanding Debt Securities, by
written notice to the Company and to the Trustee, may rescind and annul a
declaration of acceleration and its consequences if, in addition to certain
other covenants, (i) all existing Events of Default, other than the
nonpayment of the principal of and premium, if any, interest and Additional
Amounts, if any, on such Debt Securities that have become due solely by such
declaration of acceleration, have been cured or waived and (ii) the
rescission would not conflict with any judgment, decree

 

A-20

 

or
order of a court of competent jurisdiction. 
The Holders of at least a majority in aggregate principal amount of the
outstanding Debt Securities, by written notice to the Trustee, may waive an
existing Default or Event of Default and the consequences under the Indenture,
except a Default in the payment of principal of, premium, if any, on or
interest on the Debt Securities or in respect of a covenant or provision of the
Indenture that cannot be modified or amended without the consent of the Holder
of each outstanding Debt Security affected.

 

The Holders of at least a
majority in aggregate principal amount of the outstanding Debt Securities may
on behalf of the Holders of all of the Debt Securities, direct the time, method
and place of conducting any proceeding for any remedy available to the Trustee
or exercising any trust or power conferred on the Trustee with respect to the
Debt Securities by the Indenture.  However,
the Trustee under the Indenture may refuse to follow any direction that
conflicts with law or the Indenture, that may involve the Trustee in personal
liability, or that the Trustee determines in good faith may be unduly
prejudicial to the rights of Holders of Debt Securities not joining in the
giving of such direction and may take any other action it deems proper that is
not inconsistent with any such direction received from Holders of Debt
Securities.  A Holder may not pursue any
remedy with respect to the Indenture or this Debt Security unless:  (i) the Holder gives the Trustee written
notice of a continuing Event of Default; (ii) the Holders of at least 25%
in aggregate principal amount at maturity of outstanding Debt Securities make a
written request to the Trustee to pursue the remedy; (iii) such Holder or
Holders offer the Trustee indemnity satisfactory to the Trustee against any
costs, liability or expense; (iv) the Trustee does not comply with the
request within 60 days after receipt of the request and the offer of indemnity;
and (v) during such 60-day period, the Holders of a majority in aggregate
principal amount of the outstanding Debt Securities do not give the Trustee a
direction that is inconsistent with the request.  However, such limitations do not apply to the
right of any Holder of a Debt Security to receive payment of the principal of,
premium, if any, on or interest on such Debt Security or to bring suit for the
enforcement of any such payment, on or after the due date expressed in the Debt
Securities, which right shall not be impaired or affected without the consent
of such Holder.

 

Meetings of Holders;
Modification and Waiver

 

(a)           The
Trustee or the Company shall, upon the request of the Holders of at least five
percent in aggregate principal amount of the Debt Securities of any series at
the time Outstanding, or the Company or the Trustee at its discretion, may,
call a meeting of the Holders at any time and from time to time, to make, give
or take any request, demand, authorization, direction, notice, consent, waiver
or other action provided by this Debt Security to be made, given or taken by
such Holders.  With respect to all
matters not contemplated in the Indenture, meetings of Holders will be held in
Buenos Aires in accordance with the Negotiable Obligations Law; provided, however, that the Company or the Trustee may
determine to hold any such meetings simultaneously in Buenos Aires and in The
City of New York by any means of telecommunication.  Meetings shall be held at such time and at
such place as the Company or the Trustee shall determine in such cities.  If a meeting is being held pursuant to a
request of Holders, the agenda for the meeting shall be as determined in the
request and such meeting shall be convened within 40 days from the date such
request is received by the Trustee or the Company, as the case may be.  Notice of any meeting of Holders (which shall
include the date,

 

A-21

 

place and time of the
meeting, the agenda therefor and the requirements to attend) shall be published
not less than ten days nor more than 30 days prior to the date fixed for the
meeting in the Boletín Oficial de la República
(the Official Gazette of Argentina) and, while there are Holders domiciled in Argentina,
in a newspaper having major circulation in Argentina and any publication of
such notice shall be for five consecutive Business Days in each place of
publication.

 

(b)           Any
Holder may attend the meeting in person or by proxy.  Directors, officers, managers, members of the
Supervisory Committee and employees of the Company may not be appointed as
proxies.  Holders of Debt Securities who
intend to attend a meeting of Holders must notify the Registrar of their intention
to do so at least three days prior to the date of such meeting.

 

(c)           Decisions
shall be made by the affirmative vote of the Holders of at least 51% in
aggregate principal amount of the Debt Securities of any series at the time
outstanding present or represented at a meeting of such Holders at which a
quorum is present; provided, however,
that the affirmative vote of the Holders of the applicable percentage in
aggregate principal amount of the Debt Securities at the time Outstanding
specified under “Events of Default” shall be required to take the actions
specified under such heading; provided further, however,
that the unanimous affirmative vote of the Holders of the Debt Securities shall
be required to adopt a valid decision on:

 

(i)            changing
the Stated Maturity of, or failing to pay, the principal of, premium, if any,
on or any installment of interest on any Debt Security, or reducing the
principal amount thereof, premium, if any, thereon or the rate of interest
thereon or changing the requirement to pay Additional Amounts thereon;

 

(ii)           changing the place of payment where, or the coin or currency
in which, the principal of, premium, if any, on or interest or Additional
Amounts (if any) on any Debt Security is payable;

 

(iii)          impairing the right to institute suit for the enforcement of
any such payment on or after the Stated Maturity thereof (or, in the case of
redemption, on or after the Redemption Date);

 

(iv)          reducing
the percentage in principal amount of the outstanding Debt Securities, the
consent of the Holders of which is required for the adoption of a resolution or
the quorum required to constitute a meeting of Holders at which a resolution is
adopted or the percentage in principal amount of outstanding Debt Securities
the Holders of which are entitled to request the calling of a meeting of
Holders; or

 

(v)           modifying the percentage in principal amount of the Debt
Securities of any series, the consent of Holders which is required to waive a
past Default or Event of Default.

 

Except as provided above,
any modifications, amendments or waivers to the terms and conditions of the
Debt Securities of any series will be conclusive and binding on all Holders of

 

A-22

 

Debt Securities of such
series, whether or not they were present at any meeting, and whether or not
notation of such modifications, amendments or waivers is made upon the Debt
Securities, provided that any such modification,
amendment or waiver was duly passed at a meeting convened and held in
accordance with the provisions of the Negotiable Obligations Law.

 

(d)           Meetings
of the Holders of Debt Securities of any series shall be either “first call”
meetings (“primera convocatoria”) or “second call”
meetings (“segunda convocatoria”).  All meetings of the Holders of Debt
Securities of any series shall be deemed to be a first call meeting; provided, however, that
any reconvened meeting adjourned for lack of a requisite quorum shall be deemed
a second call meeting.  The quorum
applicable at a meeting of the Holders of Debt Securities of any series shall
be as follows:

 

(i)            the
quorum for meetings called to adopt a resolution by which Holders of Debt
Securities of any series shall make any request, demand or direction or give
any notice (other than a resolution specified in paragraph (ii) below)
shall, (A) in the case of first call meetings, be such Persons holding or
representing a majority in aggregate principal amount of the Debt Securities at
the time outstanding and (B) in the case of second call meetings, be such
Persons present at such meeting holding or representing Debt Securities at the
time outstanding; and

 

(ii)           the quorum
for meetings called to adopt a resolution by which Holders of Debt Securities
of any series consent to any waiver under the Debt Securities of any series or
the Indenture, agree to any amendment to the Indenture or the terms and
conditions of the Debt Securities of any series, or specify the time, method
and place of conducting any proceeding for any remedy available to the Trustee
or exercising any trust or power conferred upon the Trustee with respect to the
Debt Securities of any series by the Indenture shall (A) in the case of
first call meetings, be Persons holding or representing at least 60% in
aggregate principal amount of the Debt Securities of any series at the time
outstanding and (B) in the case of second call meetings, be Persons
holding or representing at least 30% in aggregate principal amount of the Debt
Securities of any series at the time outstanding.

 

(e)           Without
the vote of any Holders of Debt Securities of any series, the Company, when
authorized by a Board Resolution, and the Trustee, at any time and from time to
time, may enter into one or more indentures supplemental to the Indenture in
form satisfactory to the Trustee, for any of the following purposes:

 

(i)            to evidence the succession of another Person to the Company
and the assumption by any such successor of the covenants of the Company in the
Indenture and in the Debt Securities of any series; or

 

(ii)           to add to the covenants of the Company for the benefit of
the Holders or to surrender any right or power herein conferred upon the
Company; or

 

(iii)          to secure the Debt Securities of any series; or

 

A-23

 

(iv)          to comply with any requirements of the Commission in order
to effect and maintain the qualification of the Indenture under the Trust
Indenture Act; or

 

(v)           to
add to or change any of the provisions of the Indenture to provide that Bearer
Debt Securities may be registrable as to principal, to change or eliminate any
restrictions on the payment of principal of or any premium or interest on
Bearer Debt Securities, to permit Bearer Debt Securities to be issued in
exchange for Registered Debt Securities, to permit Bearer Debt Securities to be
issued in exchange for Bearer Debt Securities of other authorized denominations
or to permit or facilitate the issuance of Debt Securities in uncertificated
form; provided that any such action shall not
adversely affect the interests of the Holders of Debt Securities of any series
or any related coupons in any material respect; or

 

(vi)          to evidence and provide for acceptance of appointment
hereunder by a successor Trustee pursuant to the provisions of the Indenture;
or

 

(vii)         to
cure any ambiguity, to correct or supplement any provision herein which may be
inconsistent with any other provision herein, or to make any other provisions
with respect to matters or questions arising under the Indenture which shall
not be inconsistent with the provisions of the Indenture, provided
that such action pursuant to this clause (vii) shall not adversely affect
the interests of the Holders in any material respect; or

 

(viii)        to increase the aggregate principal amount of Public Debt
Securities at any time outstanding under the Indenture.

 

No reference herein to
the Indenture and no provision of this Debt Security or of the Indenture shall
alter or impair the obligation of the Company, which is absolute and
unconditional, to pay the principal of, premium, if any, on and interest and Additional
Amounts, if any, on this Debt Security at the times, place and rate, and in the
coin or currency, herein prescribed.

 

Notices

 

Notices to Holders of
Registered Debt Securities will be mailed to them at their respective addresses
as they appear in the register maintained by the Registrar and shall be
published as may be required by applicable law or, to the extent there are
Holders domiciled in Argentina (i) in a leading newspaper having general
circulation in Argentina, (ii) for so long as any series of Debt
Securities is listed on the Buenos Aires Stock Exchange, in the Bulletin of the
Buenos Aires Stock Exchange, and (iii) in the Official
Gazette of Argentina.  Any
notice so mailed shall be deemed to have been given on the date of such
mailing.  In any case where notice to
Holders is given by mail, neither the failure to mail such notice, nor any
defect in any notice so mailed, to any particular Holder shall affect the
sufficiency of such notice with respect to other Holders of Registered Debt Securities
or the sufficiency of any notice to Holders of Bearer Debt Securities given as
provided.  Any notice mailed to a Holder
in the manner herein

 

A-24

 

prescribed shall be
deemed to have been received by (i) a Holder domiciled in Argentina when
actually received and (ii) a Holder domiciled outside of Argentina when so
mailed.

 

Where the Indenture
provides for notice to Holders of Bearer Debt Securities of any event, such
notice shall be sufficiently given to Holders of Bearer Debt Securities if
published in an Authorized Newspaper and in such other city or cities as may be
specified in such Debt Securities on a Business Day at least twice, the first
such publication to be not earlier than the earliest date, and not later than
the latest date, prescribed for the giving of such notice.  Any such notice shall be deemed to have been
given on the date of the first such publication.

 

In case, by reason of the
suspension of publication of any Authorized Newspaper or Authorized Newspapers
or by reason of any other cause it shall be impracticable to publish any notice
to Holders of Bearer Debt Securities as provided above, then such notification
to Holders of Bearer Debt Securities as shall be given in a manner satisfactory
to the Trustee shall constitute sufficient notice to such Holders for every
purpose hereunder.  Neither
the failure to give notice by publication to Holders of Bearer Debt Securities
as provided above, nor any defect in any notice so published, shall affect the
sufficiency of such notice with respect to the other Holders of Bearer Debt
Securities or the sufficiency of any notice to Holders of Registered
Debt Securities given as provided herein.

 

Discharge and Defeasance

 

Under the terms of the
Indenture, the Company may at its option by a resolution of the Board of
Directors, at any time, upon the satisfaction of certain conditions described
below, elect to be discharged from its obligations with respect to Outstanding
Debt Securities of any series (“defeasance”).  In general, upon a defeasance, the Company
shall be deemed to have paid and discharged the entire indebtedness represented
by the Outstanding Debt Securities and any related coupons and to have
satisfied all of its obligations under such Debt Securities and any related
coupons except for (i) the rights of Holders of such Debt Securities and
any related coupons to receive, solely from the trust fund established for such
purposes as described below, payments in respect of the principal of, premium,
if any, on and interest on such Debt Securities and any related coupons when
such payments are due, (ii) certain provisions relating to ownership,
registration and transfer of the Debt Securities and any related coupons, (iii) certain
provisions relating to the mutilation, destruction, loss or theft of the Debt
Securities and any related coupons, (iv) the Company’s obligations to
effect a registered exchange offer or a private exchange offer, (v) the
covenant relating to the maintenance of an office or agency in Buenos Aires and
The City of New York and (vi) certain provisions relating to the rights,
powers, trusts duties and immunities of the Trustee.

 

In addition, the Company
may at its option by Board Resolution, at any time, upon the satisfaction of
certain conditions described below, elect to be released from certain covenants
described in the Indenture (“covenant defeasance”).  Following such covenant defeasance, the
occurrence of a breach or violation of any such covenant will not be deemed to
be an Event of Default under the Indenture.

 

A-25

 

In order to cause a
defeasance or covenant defeasance, the Company will be required to satisfy,
among other conditions, the following conditions:

 

(a)           the
Company shall have irrevocably deposited or caused to be deposited with the
Trustee as funds in trust, money or U.S. Government Obligations, or a
combination thereof, sufficient, in the opinion of an internationally
recognized firm of independent public accountants, to pay and discharge the
principal of, premium, if any, on and each installment of interest on the
outstanding Debt Securities and any related coupons on the Stated Maturity or
on the applicable Redemption Date, as the case may be, of such principal,
premium, if any, or installment of interest in accordance with the terms of
this Debt Security and any related coupons, and such amounts will be applied
for such purpose, and the Company must specify whether the Debt Securities and
any related coupons are being defeased to maturity or to a particular
Redemption Date;

 

(b)           in
the case of an election fully to defease the Debt Securities, the Company shall
have delivered to the Trustee an Opinion of Counsel stating that (x) the
Company has received from, or there has been published by, the Internal Revenue
Service a ruling, or (y) since the date of the Indenture there has been a
change in the applicable federal income tax law or the interpretation thereof,
in either case to the effect that, and based thereon such opinion shall confirm
that, the Holders of the outstanding Debt Securities and any related coupons
will not recognize income, gain or loss for federal income tax purposes as a
result of such deposit, defeasance and discharge and will be subject to federal
income tax on the same amount, in the same manner and at the same time as would
have been the case if such deposit, defeasance and discharge had not occurred;

 

(c)           in
the case of a covenant defeasance, the Company shall have delivered to the
Trustee an Opinion of Counsel to the effect that the Holders of the outstanding
Debt Securities and any related coupons will not recognize income, gain or loss
for federal income tax purposes as a result of such deposit and covenant
defeasance and will be subject to federal income tax on the same amount, in the
same manner and at the same time as would have been the case if such deposit
and covenant defeasance had not occurred;

 

(d)           the
Company shall have delivered to the Trustee an Officers’ Certificate to the
effect that the Debt Securities and any related coupons, if then listed on any
securities exchange, will not be delisted as a result of such deposit;

 

(e)           no
Event of Default or event which with notice or lapse of time or both would
become an Event of Default shall have occurred and be continuing on the date of
such deposit (other than a Default or Event of Default resulting from the
borrowing of funds to be applied to such deposit) after giving effect thereto
or, with respect to a Default or Event of Default specified in clauses (i) or
(j) of the first paragraph of “— Events of Default”, at any time during the
period ending on the 121st day after the date of such deposit (it being
understood that this condition shall not be deemed satisfied until the
expiration of such period);

 

(f)            such
defeasance or covenant defeasance shall not cause the Trustee to have a
conflicting interest as defined in the Indenture and for the purposes of the
Trust Indenture Act with respect to any securities of the Company;

 

A-26

 

(g)           such
defeasance or covenant defeasance shall not result in a breach or violation of,
or constitute a default under, any other material agreement or instrument to
which the Company is a party or by which it is bound;

 

(h)           the
Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that all conditions precedent relating to
either defeasance or covenant defeasance (as the case may be) have been
complied with; and

 

(i)            such defeasance or covenant defeasance shall not result in
the trust arising from such deposit constituting an investment company as
defined in the Investment Company Act of 1940, as amended, or such trust shall
be qualified under such act or exempt from regulation thereunder.

 

Trustee Dealings with the
Company

 

Subject to certain
limitations imposed by the Trust Indenture Act, the Trustee under the
Indenture, in its individual or any other capacity, may become the owner or
pledgee of Debt Securities and may otherwise deal with the Company and receive,
collect, hold and retain collections from the Company or its Affiliates with
the same rights it would have if it were not Trustee.  Any Paying Agent, Registrar or Co-Registrar
may do the same with like rights.

 

No Personal Liability of Incorporators, Shareholders, Officers,
Board of Directors Members or Employees

 

The Indenture provides
that no recourse for the payment of the principal of, premium, if any, on or
interest on any of the Debt Securities or for any claim based thereon or
otherwise in respect thereof, and no recourse under or upon any obligation,
covenant or agreement of the Company in the Indenture or in this Debt Security
or because of the creation of any Indebtedness represented thereby, shall be
had against any incorporator, shareholder, officer, director, employee, Board
of Directors member or controlling person of the Company or of any successor
Person thereof.  Each Holder, by
accepting the Debt Securities, waives and releases all such liability.  The waiver and release are part of the
consideration for issuance of the Debt Securities.  Such waiver may not be effective to waive
liabilities under Argentine or the U.S. federal securities laws and it is the
view of the Commission that such a waiver is against public policy.

 

Governing Law and
Enforceability

 

The Negotiable
Obligations Law governs the requirements for the Debt Securities to qualify as Obligaciones Negociables thereunder while such law, together
with the Argentine Business Companies Law No. 19,550, as amended, and
other applicable Argentine laws, govern the capacity and corporate authority of
the Company to execute and deliver the Debt Securities [and the authorization
of the public offering of the Public Debt Securities by the CNV].(9)  All

 

(9)           Applicable
for Public Debt Securities

 

A-27

 

other
matters in respect of the Debt Securities and the Indenture, including but not
limited to the statute of limitations applicable thereto, are governed by and
shall be construed in accordance with the laws of the State of New York, United
States.

 

The Company consents to
the non-exclusive jurisdiction of any court of the State of New York or any
United States federal court sitting in the Borough of Manhattan, The City of
New York, New York, United States, and any appellate court from any thereof,
and waives any immunity from the jurisdiction of such courts over any suit,
action or proceeding that may be brought in connection with the Indenture or
this Debt Security.  The Company
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
Indenture or this Debt Security 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. 
The Company agrees that final judgment in any such suit, action or
proceeding brought in such court shall be conclusive and binding upon the
Company and may be enforced in any court to the jurisdiction of which the
Company is subject by a suit upon such judgment; provided
that service of process is effected upon the Company in the manner provided by
the Indenture.  Notwithstanding the
foregoing, any suit, action or proceeding brought in connection with the
Indenture or this Debt Security may be instituted in any competent court in
Argentina.

 

The Company agrees that
service of all writs, process and summonses in any suit, action or proceeding
brought in connection with the Indenture or this Debt Security against the
Company in any court of the State of New York or any United States federal
court sitting in the Borough of Manhattan, The City of New York, New York, United
States, may be made upon CT Corporation System at 111 Eighth Avenue, New York,
New York 10011, whom the Company irrevocably appoints as its authorized agent
for service of process.  The Company
represents and warrants that CT Corporation System has agreed to act as the
Company’s agent for service of process. 
The Company agrees that such appointment shall be irrevocable so long as any of the Debt Securities remain Outstanding or
until the irrevocable appointment by the Company 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
Company 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 Company’s agent for service of process, the Company
shall appoint without delay another such agent and provide prompt written
notice to the Trustee 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, The City of New
York, New York, United States, service of process upon CT Corporation
System, as the authorized agent of the Company for service of process, and
written notice of such service to the Company, shall be deemed, in every
respect, effective service of process upon the Company.

 

Currency Indemnity

 

The dollar is the sole
currency of account and payment for all sums payable by the Company under or in
connection with this Debt Security.  Any
amount received or recovered in currency other than dollars (whether as a
result of, or of the enforcement of, a judgment or order of a court of any jurisdiction,
in the winding up or dissolution of the Company or

 

A-28

 

otherwise) by any Holder
of Debt Securities of any series in respect of any sum expressed to be due to
it from the Company shall only constitute a discharge of the Company to the
extent of the dollar amount which the recipient is able to purchase 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 dollar amount is less than the dollar
amount expressed to be due to the recipient under any Debt Security, the
Company shall indemnify such recipient against any loss sustained by it as a
result.  In any event, the Company shall
indemnify the recipient against the cost of making any such purchase.  For the purposes of this paragraph, it will
be sufficient for the Holder to certify (indicating the sources of information
used) that it would have suffered a loss had an actual purchase of dollars been
made with the amount so received in that other currency on the date of receipt
or recovery (or, if a purchase of dollars on such date had not been
practicable, or the first date on which it would have been practicable).  These indemnities constitute a separate and
independent obligation from the Company’s other obligations, shall give rise to
a separate and independent cause of action, shall apply irrespective of any
waiver granted by any 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 under any Debt Security or any other judgment or order.

 

Defined Terms

 

“Acquired Indebtedness”
means Indebtedness of a Person existing at the time such Person became or was
designated a Subsidiary of the Company and not Incurred in connection with, or
in contemplation of, such Person becoming a Subsidiary of the Company.

 

“Affiliate” means,
as applied to any Person, any other Person directly or indirectly controlling,
controlled by, or under direct or indirect common control with, such Person.

 

“Annualized Pro Forma
Consolidated Operating Cash Flow” means Consolidated Operating Cash Flow
for the latest fiscal quarter for which consolidated financial statements of
the Company are available multiplied by four. 
For purposes of calculating “Consolidated Operating Cash Flow”
for any fiscal quarter for purposes of this definition, (i) any Subsidiary
of the Company on the Transaction Date shall be deemed to have been a
Subsidiary at all times during such fiscal quarter and (ii) any Subsidiary
of the Company that is not a Subsidiary on the Transaction Date shall be deemed
not to have been a Subsidiary at any time during such fiscal quarter.  In addition to and without limitation of the
foregoing, for purposes of this definition, “Consolidated Operating Cash
Flow” shall be calculated after giving effect on a pro forma basis for the
applicable fiscal quarter to, without duplication, any Asset Sale or Asset
Acquisition (including, without limitation, any Asset Acquisition giving rise
to the need to make such calculation as a result of the Company or one of its
Subsidiaries (including any Person who becomes a Subsidiary as a result of the
Asset Acquisition) Incurring Acquired Indebtedness) occurring during the period
commencing on the first day of such fiscal quarter to and including the
Transaction Date (the “Reference Period”), as if such Asset Sale or
Asset Acquisition occurred on the first day of the Reference Period.

 

“Argentina” means the Republic of Argentina.

 

A-29

 

“Argentine Government” means the government of
Argentina.

 

“Asset Acquisition”
means (i) an Investment or capital contribution (by means of transfers of
cash or other property to others or payments for property or services for the
account or use of others, or otherwise) by the Company or any of its
Subsidiaries in any other Person, or any acquisition or purchase of Capital
Stock of another Person by the Company or any of its Subsidiaries, in either
case pursuant to which such Person shall become a Subsidiary of the Company or
shall be merged with or into or consolidated with the Company or any Subsidiary
of the Company or (ii) an acquisition by the Company or any of its
Subsidiaries of the property and assets of any Person other than the Company or
of its Subsidiaries which constitute substantially all of a division, operating
unit or line of business of such Person or which is otherwise outside the
ordinary course of business.

 

“Asset Sale” means
any direct or indirect sale, transfer, conveyance or lease (which has the
effect of a disposition and is not for security purposes) or other disposition
(including by way of sale-leaseback transactions in one transaction or a series
of related transactions by the Company or any Subsidiary of the Company to any
Person other than the Company or any Subsidiary of the Company of (i) all
or any of the Capital Stock of any Subsidiary (other than directors’ qualifying
shares or shares owned by a Person, to the extent mandated by applicable law), (ii) any
material license or other authorization of the Company or any Subsidiary of the
Company pertaining to a Cable/Telecommunications Business, (iii) all or
substantially all of the property and assets of an operating unit or business
of the Company or any Subsidiary of the Company or (iv) any other property
and assets of the Company or any Subsidiary of the Company and, in each case,
that is not governed by the “Consolidation, Merger and Sale of Assets” covenant
hereof; provided, however that the term “Asset
Sale” shall in no case include any sale, transfer, conveyance, lease or other
disposition in one transaction or a series of related transactions (i) of
property or equipment that has become worn out, obsolete or damaged or
otherwise unsuitable for use in connection with the business of the Company or
any Subsidiary of the Company, as the case may be, (ii) involving assets
with a Fair Market Value not in excess of U.S.$500,000, (iii) of inventory
in the ordinary course of business, or (iv) involving the sale or other
disposition of cash or Cash Equivalents.

 

“Authorized Newspaper”
means a newspaper, in the English language or in an official language of the
country of publication, customarily published on each Business Day, whether or
not published on Saturdays, Sundays or holidays, and of general circulation in
each place in connection with which the term is used or in the financial
community of each such place.  Where
successive publications are required to be made in Authorized Newspapers, the
successive publications may be made in the same or in different newspapers in
the same city meeting the foregoing requirements and in each case on any
Business Day.

 

“Average Life”
means, at any date of determination with respect to any Indebtedness, the
quotient obtained by dividing (i) the sum of the products of (a) the
number of years from such date of determination to the dates of each successive
scheduled principal payment, redemption or similar payment with respect to such
Indebtedness and (b) the amount of such principal payment by (ii) the
sum of all such principal payments.

 

A-30

 

“Bearer Debt Security”
means any Debt Security except a Registered Debt Security.

 

“Board of Directors” means the board of
directors of the Company.

 

“Board Resolution”
means a copy of a resolution certified by a director of the Company to have
been duly adopted by the Board of Directors and to be in full force and effect
on the date of such certification, and delivered to the Trustee.

 

“Business Day”
means any day (other than a Saturday or Sunday) on which DTC, Euroclear or
Clearstream, Luxembourg and banks in The City of New York and Buenos Aires are
open for business.

 

“Cable/Telecommunications
Business” means any business operating a cable and/or telecommunications
services and/or communications services or programming business located in
South America, including, without limitation, any business conducted by the
Company at the Issue Date of the initial series of Debt Securities issued under
the Indenture.

 

“Capital Stock”
means, with respect to any Person, any and all shares, interests,
participations, rights in or other equivalents (however designated, whether
voting or non-voting) in equity of such Person, whether outstanding at the
Issue Date of the initial series of Debt Securities issued under the Indenture
or issued thereafter, including, without limitation, all Common Stock and
Disqualified Stock, and any and all rights, warrants or options exchangeable
for or convertible into any thereof.

 

“Capitalized Lease”
means, as applied to any Person, any lease or license of, or other agreement
conveying the right to use, any property (whether real, personal or mixed,
movable or immovable) of which the present value of the obligations of such
Person to pay rent or other amounts is required, in conformity with GAAP, to be
classified and accounted for as a finance lease obligation; and “Capitalized
Lease Obligation” is defined to mean the capitalized present value of the
obligations to pay rent or other amounts under such lease or other agreement,
determined in accordance with GAAP.

 

“Cash Equivalents”
means (i) any evidence of Indebtedness with a maturity of 365 days or less
issued or directly and fully guaranteed or insured by Argentina or the United
States or any agency or instrumentality thereof (provided
that the full faith and credit of Argentina or the United States, as the case
may be, is pledged in support thereof or such Indebtedness constitutes a
general obligation of such country); (ii) deposits, certificates of
deposit or acceptances with a maturity of 180 days or less of, or Indebtedness
with a maturity of 365 days or less directly and fully secured by an
irrevocable standby letter of credit issued or confirmed by, (x) any financial
institution that is a member of the Federal Reserve System, and has combined
capital and surplus and undivided profits (or any similar capital concept) of
not less than U.S.$500 million or (y) Credit Suisse First Boston Corporation,
Fleet Bank, Banco Francés - BBVA, Banco Río de la Plata S.A., Banco de Galicia
y Buenos Aires S.A., Citibank, N.A. and any of the five largest banks (based on
assets as of the last December 31) organized under the laws of Argentina, provided that such bank is not under intervention,
receivership or any similar arrangement at the time of such deposit or the
acquisition of such certificate of

 

A-31

 

deposit or acceptance; (iii) commercial
paper with a maturity of 180 days or less issued by a corporation (other than
an Affiliate of the Company) organized under the laws of Argentina or any part
thereof or the United States or any state thereof or the District of Columbia
and rated at least “A-1” by Standard & Poor’s Corporation or “P-1” by
Moody’s Investors Service; (iv) repurchase agreements and reverse
repurchase agreements relating to marketable direct obligations issued or
unconditionally guaranteed by the government of Argentina or the United States
government (in the case of any Argentine or United States government
obligations), in each case maturing within one year from the date of
acquisition and (v) investments in money market funds all of the assets of
which consist of securities of the type described in the foregoing clauses (i) through
(iii).

 

“Certificated Debt
Security” means any certificated Debt Security (other than a global Debt
Security) in fully registered definitive form.

 

“Clearstream,
Luxembourg” means Clearstream Banking, société anonyme (formerly known as
Cedelbank), and its successors.

 

“CNV” means the Argentine Comisión
Nacional de Valores.

 

“Co-Registrar”
means Law Debenture Trust Company of New York, until a successor Co-Registrar
shall have become such pursuant to the applicable provisions of the Indenture,
and, thereafter, “Co-Registrar” shall mean such successor Co-Registrar.

 

“Commission” means
the U.S. Securities and Exchange Commission, as from time to time constituted,
created under the Exchange Act, or, if at any time after the execution of this
instrument such Commission is not existing and performing the duties now
assigned to it under the Trust Indenture Act, then the body performing such
duties at such time.

 

“Common Stock”
means with respect to any Person, any and all shares, interests or other
participations in, and other equivalents (however designated and whether voting
or non-voting) of such Person’s common stock or ordinary shares, whether or not
outstanding at the Issue Date of the initial series of Debt Securities issued
under the Indenture or issued thereafter, and includes, without limitation, all
series and classes of such common stock or ordinary shares.

 

“Company” means
the Person named as the “Company” in the first paragraph of this
instrument until a successor Person shall have become such pursuant to the
applicable provisions of the Indenture and thereafter “Company” shall
mean such successor Person.

 

“Company Request”
or “Company Order” means a written request or order signed in the name
of the Company by any of its directors or alternate directors or its chief
financial officer and a director or alternate director and delivered to the
Trustee.

 

“Consolidated Income
Tax Expense” means, for any period, the provision for local, foreign and
all other income taxes of the Company and its Subsidiaries for such period as
determined in accordance with GAAP.

 

“Consolidated Interest
Expense” means, for any period, the aggregate amount of interest expense in
respect of Indebtedness (including, without limitation, amortization of

 

A-32

 

original issue discount
on any indebtedness and the interest portion of any deferred payment
obligation, all commissions, discounts and other fees and charges owed with
respect to letters of credit and bankers’ acceptance financing and the net
costs associated with Interest Rate Protection Obligations) and all but the
principal component of rent or other amounts in respect of Capitalized Lease
Obligations paid, accrued or scheduled to be paid or to be accrued by the
Company and its Subsidiaries during such period, but excluding, any premiums,
fees and expenses (and any amortization thereof) payable in connection with the
offering of any series of Debt Securities or other Indebtedness, all as
determined on a consolidated basis in conformity with GAAP.

 

“Consolidated Net
Income” means, for any period, the consolidated net income (or loss) of the
Company and its Subsidiaries for such period determined in accordance with
GAAP, adjusted, to the extent included in calculating such consolidated net
income, by excluding, without duplication, (i) all extraordinary gains or
losses of such Person for such period, (ii) income of the Company and its
Subsidiaries derived from or in respect of all Investments in Persons other
than any of its Subsidiaries, (iii) the portion of net income (or loss) of
such Person allocable to minority interests in unconsolidated Persons for such
period, except to the extent actually received by the Company or any of its
Subsidiaries, (iv) net income (or loss) of any other Person combined with
such Person on a “pooling of interests” basis attributable to any period prior
to the date of combination, (v) any gain or loss, net of taxes, realized
by such Person upon the termination of any employee pension benefit plan during
such period, (vi) gains (but not losses) in respect of any Asset Sales
during such period and (vii) the net income of any Subsidiary of the
Company for such period to the extent that the declaration of dividends or
similar distributions by such Subsidiary of that income is not at the time
permitted, directly or indirectly, by operation of the terms of its constitutional
documents or any agreement, instrument, judgment, decree, order, statute, rule or
governmental regulations applicable to that Subsidiary or its stockholders.

 

“Consolidated Net
Worth” means, with respect to any Person as of any date, the total of the amounts
shown on the balance sheet of such Person and its consolidated subsidiaries,
determined on a consolidated basis in accordance with GAAP, as of the end of
the most recent fiscal quarter for which consolidated financial statements for
such Person and its consolidated subsidiaries have been prepared prior to the
taking of any action for the purpose of which the determination is being made,
as (i) the par or stated value of all outstanding Capital Stock of such
Person plus (ii) paid-in capital or capital surplus relating to such
Capital Stock plus (iii) any retained earnings or earned surplus less (iv) (A) any
accumulated deficit and (B) any amounts attributable to Disqualified Stock
of such Person not held by such Person or its Subsidiaries.

 

“Consolidated
Operating Cash Flow” means, with respect to any period, the Consolidated
Net Income for such period increased by the sum of (i) the Consolidated
Income Tax Expense of the Company and its Subsidiaries accrued according to
GAAP for such period (only to the extent the corresponding income was included
in computing Consolidated Net Income for such period and other than taxes
attributable to extraordinary, unusual or nonrecurring gains or losses); (ii) Consolidated
Interest Expense of the Company and its Subsidiaries for such period; (iii) consolidated
depreciation of the Company and its Subsidiaries for such period; (iv) consolidated
amortization of the Company and its Subsidiaries for such period, including,
without limitation, amortization of capitalized debt issuance costs for such

 

A-33

 

period; and (v) all
other non-cash items of the Company and its Subsidiaries reducing Consolidated
Net Income (excluding any non-cash items to the extent they represent an accrual
of, or a reserve for, cash disbursements for any subsequent period); and
reduced by (vi) all non-cash items of the Company and its Subsidiaries
increasing Consolidated Net Income for such period; in each case determined on
a consolidated basis in accordance with GAAP.

 

“control”
(including, with correlative meanings, the terms “controlling,” “controlled
by” and “under common control with”), as applied to any Person,
means the possession by another Person (whether directly or indirectly and
whether by the ownership of share capital, the possession of voting power,
contract or otherwise) of the power to appoint and/or remove the majority of
the members of the board of directors or other governing body of such Person or
otherwise to direct or cause the direction of the affairs and policies of such
Person.

 

“Corporate Trust
Office” means the office of the Trustee located at 767 Third Avenue, 31st
Floor, New York, New York 10017.

 

“Corporation”
means a sociedad anónima, sociedad de
responsibilidad limitada, corporation, association, company or
business trust.

 

“coupon”
means any interest coupon appertaining to a Bearer Debt Security.

 

“Currency Agreement”
means any foreign exchange contract, currency swap agreement or other similar
agreement or arrangement designed to protect the Company or any Subsidiary
against fluctuations in currency values.

 

“Debt Security”
and “Debt Securities” have the meaning set forth in the second recital
of the Indenture, or, as the case may be, Debt Securities that have been authenticated
and delivered under the Indenture.

 

“Debt Security
Register” means the books for the exchange, registration and registration
of transfer of Registered Debt Securities.

 

“Default” means
any event that is, or after notice or passage of time or both would be, an
Event of Default.

 

“Depositary”
means, when used with respect to the Debt Securities issuable or issued in
whole or in part in the form of one or more Global Debt Securities, DTC, its
nominees, and their respective successors or such other depositary as may be
designated with respect thereto.

 

“Disqualified Stock”
means, with respect to any Person, any Capital Stock of such Person 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, matures or is
mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, or
is exchangeable for Indebtedness, or is redeemable at the option of the holder
thereof, in whole or in part, on or prior to the final maturity date of the
relevant series of Debt Securities.

 

A-34

 

“DTC” means The Depository Trust Company and
its successors.

 

“Euroclear” means
Euroclear Bank S.A./N.V., as operator of the Euroclear
System, and its successors.

 

“Event of Default”
means any of the events specified in “Events of Default”.

 

“Exchange Act”
means the U.S. Securities Exchange Act of 1934, as amended.

 

“Fair Market Value”
means, with respect to any asset or property, the price that could be
negotiated in an arms-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. 
Unless otherwise specified in the Indenture, Fair Market Value shall be
determined by the chief financial officer of the Company and shall be evidenced
by an Officers’ Certificate delivered to the Trustee at its request.

 

“GAAP” means
generally accepted accounting principles in effect in Argentina as of the date
of determination.

 

“Global Debt Security”
means a Debt Security in definitive global form evidencing all or part of a
series of Debt Securities that is deposited with DTC or another Depositary, or
a nominee thereof, for credit to the respective accounts of the beneficial
owners of the Debt Securities represented thereby.

 

“Governmental Agency”
means any public legal entity or public agency of Argentina or the United
States, whether created by any competent authority, federal, state or local
government, or any other legal entity now existing or hereafter created, or now
or hereafter owned or controlled, directly or indirectly, by any public legal
entity or public agency of Argentina or the United States.

 

“Guarantee” means
any obligation, contingent or otherwise, of any Person directly or indirectly
guaranteeing any Indebtedness or other obligation of any other Person and,
without limiting the generality of the foregoing, any obligation, direct or
indirect, contingent or otherwise, of such Person (i) to purchase or pay
(or advance or supply funds for the purchase or payment of) such Indebtedness
or other obligation of such other Person (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 purposes of
assuring in any other manner the obligee of such Indebtedness or other
obligation of the payment thereof or to protect such obligee against loss in
respect thereof (in whole or in part); provided 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.

 

“Guarantor” means any Person obligated under a
Guarantee.

 

“Holder”, “Holder
of Debt Securities” or other similar terms means, in the case of a
Registered Debt Security, a Person in whose name a Debt Security is registered
in the Debt

 

A-35

 

Security Register and, in
the case of a Bearer Debt Security, means the bearer thereof and, when used
with respect to any coupon, shall mean the bearer thereof.

 

“Incur” means,
with respect to any Indebtedness, to incur, create, issue, assume, Guarantee or
otherwise, contingently or otherwise, become liable, directly or indirectly,
for or with respect to, or become responsible for, the payment of such
Indebtedness, including an Incurrence of Acquired Indebtedness by reason of the
acquisition of more than 50% of the Capital Stock of any Person; provided that neither the accrual of interest nor the
accretion of original issue discount shall be considered an Incurrence of
Indebtedness.  The term “Incurrence” used
as a noun has a corresponding meaning.

 

“Indebtedness”
means, with respect to any Person at any date of determination (without
duplication), (i) any liability, contingent or otherwise, of such Person
for borrowed money, (ii) all obligations of such Person evidenced by bonds,
debentures, notes or other similar instruments, (iii) all obligations of
such Person in respect of letters of credit or other similar instruments
(including reimbursement obligations with respect thereto), (iv) all
obligations of such Person to pay the deferred and unpaid purchase price of
property or services, including purchase money obligations, which purchase
price is due more than 180 days after the date of placing such property in
service or taking delivery and title thereto or the completion of such
services, except Trade Payables, (v) all obligations of such Person as
lessee under Capitalized Leases, (vi) all Indebtedness of other Persons
secured by a Lien on any asset of such Person, whether or not such Indebtedness
is assumed by or is otherwise the legal liability of such Person; provided that the amount of such Indebtedness shall be the
lesser of (A) the Fair Market Value of such asset at such date of
determination and (B) the amount of such Indebtedness, (vii) all
Indebtedness of other Persons Guaranteed by such Person or which is otherwise
the legal liability of such Person, to the extent such Indebtedness is
Guaranteed by or is otherwise the legal liability of such Person, (viii) to
the extent not otherwise included in this definition, obligations under
Currency Agreements and Interest Rate Protection Obligations, (ix) any and
all deferrals, renewals, extensions and refundings of, or amendments of or
supplements to, any liability or obligation of the kind described in this
definition, and (x) Disqualified Stock. 
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, with respect to contingent obligations, the maximum liability upon
the occurrence of the contingency giving rise to the obligation, provided that the amount outstanding at any time of any
Indebtedness issued with original issue discount is the face amount of such
Indebtedness less the remaining unamortized portion of the original issue
discount of such Indebtedness at such time as determined in conformity with
GAAP.

 

“Indenture” means
the Indenture, dated as of [       ],
[2005], among the Company, Law Debenture Trust Company of New York, as Trustee,
Co-Registrar and Principal Paying Agent, and HSBC Bank Argentina S.A., as
Registrar and Paying Agent, as originally executed (including all exhibits and
schedules hereto) or as it may from time to time be supplemented or amended by
one or more indentures supplemental hereto entered into pursuant to the
applicable provisions hereof, and such term shall include, unless the context
otherwise requires, the forms and terms of any series of Debt Securities
established as contemplated hereunder.

 

“Independent Financial
Advisor” means an investment banking firm of international standing (i) which
does not, and whose shareholders, members, directors, officers

 

A-36

 

or
Affiliates do not, have a material direct or indirect financial interest in the
Company or one or more Significant Subsidiaries, and (ii) which is
otherwise independent and qualified to perform the task for which it is to be
engaged.

 

“Institutional
Accredited Investor” means institutional “accredited investors” (as defined
in Rule 501(a)(1), (2), (3) or (7) under
the Securities Act) who are not “qualified institutional buyers” (as defined in
Rule 144A under the Securities Act).

 

“Interest Payment Date”
means, with respect to any series of Debt Securities, the Stated Maturity of an
installment of interest on such series of Debt Securities.

 

“Interest Rate
Protection Obligations” means the obligations of any Person pursuant to any
arrangement with any other Person whereby, directly or indirectly, such Person
is entitled to receive from time to time periodic payments calculated by
applying either a floating or a fixed rate of interest on a stated notional
amount and shall include, without limitation, interest rate swaps, caps,
floors, collars, forward interest rate agreements and similar agreements.

 

“Investment”
means, with respect to any Person, any direct or indirect advance, loan,
account receivable (other than an account receivable arising in the ordinary
course of business), or other extension of credit (including, without
limitation, by means of any Guarantee or similar arrangement) or any capital
contribution to (by means of transfers of property to others, payments for
property or services for the account or use of others, or otherwise), or any
purchase or ownership of any stocks, bonds, notes, debentures or other
securities of, any other Person. 
Notwithstanding the foregoing, in no event shall any issuance of Capital
Stock (other than Disqualified Stock) of the Company in exchange for Capital Stock,
property or assets of another Person constitute an Investment by the Company in
such other Person.

 

“Issue Date”
means, with respect to any series of Debt Securities, the original date of
issuance and purchase of such series Debt Securities as specified in or
pursuant to the relevant Board Resolution, Officers’ Certificate, or indenture
supplemental hereto with respect thereto.

 

“Lien” means any
mortgage, charge, pledge, security interest, encumbrance, lien (statutory or
other), hypothecation, assignment for security, claim, or preference or
priority or other encumbrance of any kind upon or with respect to any property
(including, without limitation, any conditional sale or other title retention
agreement or lease in the nature thereof, any sale with recourse against the
seller or any Affiliate of the seller, or any agreement to give any security
interest).

 

“Material Adverse
Effect” means any material adverse effect whatsoever on the property,
financial condition, business or operations of the Company and its
Subsidiaries, taken as a whole.

 

“Maturity”, when
used with respect to any Debt Security, means the date on which the principal
of such Debt Security becomes due and payable as therein or herein provided,
whether at the Stated Maturity or by declaration of acceleration, call for
redemption or otherwise, as specified in or pursuant to the relevant Board
Resolution, Officers’ Certificate or the indenture supplemental hereto with
respect thereto.

 

A-37

 

“Negotiable Obligations Law” means Argentine
Law No. 23,576, as amended.

 

“Officer” means
the chairman of the Board of Directors, the chief executive officer, the chief
financial officer, the treasurer, the controller or any member of the Board of
Directors of the Company.

 

“Officers’ Certificate”
means a certificate signed by any two of the chief executive officer, chief
operating officer and chief financial officer of the Company.

 

“Opinion of Counsel”
means a written opinion from legal counsel who is reasonably acceptable to the
Trustee, which may include an individual employed as counsel to the Company or
the Trustee.

 

“Outstanding”,
when used with respect to any series of Debt Securities, means, as of the date
of determination, all Debt Securities of such series theretofore authenticated
and delivered under the Indenture, except:

 

(i)            Debt
Securities of such series theretofore canceled by the Trustee or delivered to
the Trustee for cancellation;

 

(ii)           Debt
Securities, or portions thereof, for whose payment or redemption money in the
necessary amount has been theretofore deposited with the Trustee or any Paying
Agent (other than the Company) in trust or set aside and segregated in trust by
the Company (if the Company shall act as its own Paying Agent) for the Holders
of such Debt Securities; provided that,
if such Debt Securities are to be redeemed, notice of such redemption has been
duly given pursuant to the Indenture or provision therefor satisfactory to the
Trustee has been made;

 

(iii)          Debt
Securities of such series which have been duly defeased or as to which the
Company has effected covenant defeasance pursuant to “Discharge and Defeasance”;
and

 

(iv)          Debt
Securities of such series which have been paid pursuant to the Indenture or in
exchange for or in lieu of which other Debt Securities of such series have been
authenticated and delivered pursuant to the Indenture, other than any such Debt
Securities in respect of which there shall have been presented to the Trustee
proof satisfactory to it that such Debt Securities are held by a bona fide purchaser in whose hands such Debt Securities are
valid obligations of the Company; provided, however,
that in determining whether the Holders of the requisite principal amount of
the Outstanding Debt Securities of a series have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, Debt Securities
of such series owned by the Company or any other obligor upon such Debt
Securities or any Subsidiary or Affiliate of the Company or of such other
obligor shall be disregarded and deemed not to be Outstanding, except that, in
determining whether the Trustee shall be protected in relying upon any such
request, demand, authorization, direction, notice, consent or waiver, only Debt
Securities of such series which a Responsible Officer of the Trustee actually
knows to be so owned shall be so disregarded. 
Debt Securities so owned which have been pledged in good faith may be
regarded as Outstanding if the pledgee establishes to the satisfaction of the
Trustee the

 

A-38

 

pledgee’s right so to act
with respect to such Debt Securities and that the pledgee is not the Company or
any other obligor upon such Debt Securities or any Subsidiary or Affiliate of
the Company or of such other obligor.

 

“pari passu” means, as applied to the
ranking of any Indebtedness of a Person in relation to other Indebtedness of
such Person, that each such Indebtedness either (i) is not subordinate in
right of payments to any Indebtedness or (ii) is subordinate in right of
payment to the same Indebtedness as is the other, and so subordinate to the
same extent, and is not subordinate in right of payment to each other or to any
Indebtedness as to which the other is not so subordinate.

 

“Participant”
means, with respect to DTC, Euroclear or Clearstream, Luxembourg, Persons who
have accounts with DTC, Euroclear or Clearstream, Luxembourg, respectively
(and, with respect to DTC, shall include Euroclear and Clearstream,
Luxembourg).

 

“Paying Agent”
means initially the Persons named as Paying Agent in the first paragraph of the
Indenture, any successor thereof, and any Person authorized by the Company to
pay the principal of or interest on any Debt Securities on behalf of the
Company, including the Principal Paying Agent.

 

“Permitted
Indebtedness” means, with respect to any series of Debt Securities, the
following indebtedness (each of which shall be given independent effect) of the
Company:

 

(a)  Indebtedness
under such Debt Securities and the Indenture with respect to such Debt
Securities;

 

(b)  Indebtedness of the Company outstanding on
the Issue Date;

 

(c)  Indebtedness of
the Company owed to and held by any Subsidiary of the Company; provided that an Incurrence of Indebtedness shall be deemed
to have occurred upon (x) any sale or other disposition of any
Indebtedness of the Company referred to in this clause (c) to a
Person other than the Company or a Subsidiary of the Company, or (y) any
sale or other disposition of Capital Stock of a Subsidiary of the Company which
holds Indebtedness of the Company to any person other than the Company or any
other Subsidiary;

 

(d)  Interest Rate
Protection Obligations of the Company to the extent relating to Indebtedness of
the Company, as the case may be (which Indebtedness (x) bears interest at
fluctuating interest rates and (y) is otherwise permitted to be incurred
under the “Limitation on Indebtedness” covenant);

 

(e)  Indebtedness of
the Company under Currency Agreements to the extent relating to (i) Indebtedness
of the Company and/or (ii) obligations to purchase assets, properties or
services incurred in the ordinary course of business of the Company; provided that such Currency Agreements do not increase the
Indebtedness or other obligations of the Company and its Subsidiaries
outstanding other than as a result of fluctuations in foreign currency exchange
rates or by reason of fees, indemnities or compensation payable thereunder;

 

A-39

 

(f)  Indebtedness of
the Company in respect of performance bonds of or surety or performance bonds
provided by the Company incurred in the ordinary course of business in
connection with the construction or operation of a Cable/Telecommunications
Business; or

 

(g)  Indebtedness of
the Company to the extent it represents a replacement, renewal, refinancing, or
extension of outstanding Indebtedness of the Company incurred or outstanding
pursuant to clause (a) or (b) or this clause (g) of
this definition or the proviso to the first sentence of the “Limitation on
Indebtedness” covenant; provided that (A) Indebtedness
of the Company may not be replaced, renewed, refinanced or extended under this
clause (g) with Indebtedness of any Subsidiary of the Company, (B) any
such replacement, renewal, refinancing or extension (x) shall not result
in such Indebtedness having a shorter Average Life as compared with the
Indebtedness being replaced, renewed, refinanced or extended and (y) shall
not exceed the sum of the principal amount (or, if such Indebtedness provides
for a lesser amount to be due and payable upon a declaration or acceleration
thereof, an amount no greater than such lesser amount) of the Indebtedness
being replaced, renewed, refinanced or extended plus the amount of accrued
interest thereon and the amount of any reasonably determined prepayment premium
necessary to accomplish such replacement, renewal, refinancing or extension and
such reasonable fees and expenses incurred in connection therewith, and (C) in
the case of any Indebtedness replacing, renewing, refinancing, or extending
Indebtedness which is pari passu to
such Debt Securities, any such replacing, renewing, refinancing or extending
Indebtedness is made pari passu to
such Debt Securities or subordinated to such Debt Securities, and, in the case
of any Indebtedness replacing, renewing, refinancing, or extending Subordinated
Indebtedness, any such replacing, renewing, refinancing or extending
Indebtedness is subordinated to such Debt Securities to the same extent as the
Indebtedness being replaced, renewed, refinanced or extended.

 

“Permitted Lien”
means (i) Liens existing on the Issue Date; (ii) Liens (including
extensions and renewals thereof) upon real or personal property acquired after
the Issue Date; provided that (a) such Lien
is created solely for the purpose of securing Indebtedness Incurred in
accordance with the “Limitation on Indebtedness” covenant, (1) to finance
the cost (including the cost of design, development, construction, improvement,
installation or integration) of the item of property or assets subject thereto
and such Lien is created prior to, at the time of or within six months after
the later of the acquisition, the completion of construction or the
commencement of full operation of such property or (2) to refinance any
Indebtedness previously so secured, (b) the principal amount of the
Indebtedness secured by such Lien does not exceed 100% of such cost and (c) any
such Lien shall not extend to or cover any property or assets other than such item
of property or assets and any improvements on such item; (iii) any
interest or title of a lessor in the property subject to any Capitalized Lease
or operating lease; (iv) Liens on property of, or on shares of stock or
Indebtedness of, any Person existing at the time such Person becomes a
Subsidiary of the Company, or is merged into or consolidated with the Company
or any Subsidiary of the Company; provided that
such Liens were not granted in contemplation of such acquisition, merger or
consolidation and do not extend to or cover any property or assets of the
Company or any Subsidiary of the Company other than the property or assets
acquired; (v) Liens in favor of the Company or any Subsidiary of the
Company; (vi) Liens securing reimbursement obligations with respect to
letters of credit that encumber documents and other property relating to such
letters of credit and the products and proceeds thereof; (vii) Liens
securing Indebtedness of the Company permitted pursuant to clause (g) of
the definition of “Permitted Indebtedness” or

 

A-40

 

clause (c) of the
definition of “Permitted Subsidiary Indebtedness”, provided that
any such Indebtedness being refinanced was previously secured by a Permitted
Lien and any such Lien shall not extend to or cover any property or assets
other than those encumbered by the Lien securing the Indebtedness being
refinanced; and (viii) Liens incurred in the ordinary course of business
securing Indebtedness under Interest Rate Protection Obligations and Currency
Agreements.

 

“Permitted Subsidiary
Indebtedness” means, with respect to any series of Debt Securities, the
following Indebtedness (each of which shall be given independent effect) of a
Subsidiary of the Company:

 

(a)           Indebtedness
of any Subsidiary of the Company outstanding on the Issue Date;

 

(b)           Indebtedness
of any Subsidiary of the Company owed to and held by the Company or a
Subsidiary of the Company; provided that
an Incurrence of Indebtedness shall be deemed to have occurred upon (x) any
sale or other disposition of any Indebtedness of a Subsidiary of the Company
referred to in this clause (b) to a Person other than the Company or a
Subsidiary of the Company, or (y) any sale or other disposition of Capital
Stock of a Subsidiary of the Company which holds Indebtedness of another
Subsidiary of the Company except to the extent permitted under clause (v) of
the “Consolidation, Merger and Sale of Assets” covenant herein; and

 

(c)           Indebtedness
of any Subsidiary of the Company to the extent it represents a replacement,
renewal, refinancing, or extension of outstanding Indebtedness of such
Subsidiary incurred or outstanding pursuant to clause (a) or this clause (c) of
this definition; provided that (A) any such
replacement, renewal, refinancing or extension (x) shall not result in such
Indebtedness having a shorter Average Life as compared with the Indebtedness
being replaced, renewed, refinanced or extended and (y) shall not exceed the
sum of the principal amount (or, if such Indebtedness provides for a lesser
amount to be due and payable upon a declaration or acceleration thereof, an
amount no greater than such lesser amount) of the Indebtedness being replaced,
renewed, refinanced or extended plus the amount of accrued interest thereon and
the amount of any reasonably determined prepayment premium necessary to
accomplish such replacement, renewal, refinancing or extension and such
reasonable fees and expenses incurred in connection therewith.

 

“Person” means any
individual, Corporation, partnership, joint venture, trust, unincorporated
organization or government or any agency or political subdivision thereof.

 

“Predecessor Debt
Security” of any particular Debt Security means every previous Debt
Security evidencing all or a portion of the same debt as that evidenced by such
particular Debt Security; and, for the purposes of this definition, any Debt
Security authenticated and delivered under the Indenture in exchange for or in
lieu of a mutilated, destroyed, lost or stolen Debt Security shall be deemed to
evidence the same debt as the mutilated, destroyed, lost or stolen Debt
Security.

 

A-41

 

“Principal Paying
Agent” means initially the Person named as the “Principal Paying Agent”
in the first paragraph of the Indenture, and any successor Principal Paying
Agent.

 

“Redemption Date”
means, with respect to any Debt Security, the fixed date, on which such Debt
Security is to be redeemed, in whole or in part, by the Company pursuant to the
terms of the Debt Security.

 

“Redemption Price”,
when used with respect to any Debt Security to be redeemed, means the price at
which it is to be redeemed pursuant to the terms of the Debt Security.

 

“Registered Debt
Security means any Debt Security registered in the Debt Security Register.

 

“Registrar” means
HSBC Bank Argentina S.A., until a successor Registrar shall have become such
pursuant to the applicable provisions of the Indenture, and, thereafter “Registrar”
shall mean such successor Registrar.

 

“Regular Record Date”
for the interest payable on any Interest Payment Date on the Debt Securities of
or within any series means the date specified for that purpose as contemplated
by Section 3.1 of the Indenture.

 

“Regulation S Global
Registered Debt Security” shall have the meaning set forth in Section 3.6(b) of
the Indenture.

 

“Responsible Officer”
shall mean, when used with respect to the Trustee, any officer of the Trustee
who shall have direct responsibility for the administration of this Indenture,
or to whom any corporate trust matter is referred because of such person’s
knowledge of and familiarity with the particular subject.

 

“Restricted
Certificated Debt Security” has the meaning set forth in Section 3.6(b) of
the Indenture.

 

“Sale and Leaseback
Transaction” means, with respect to any Person, any direct or indirect
arrangement (excluding, however, any such arrangement between such Person and a
Wholly-Owned Subsidiary of such Person or between one or more Wholly-Owned
Subsidiaries of such Person) pursuant to which property is sold or transferred
by such Person or a Subsidiary of such Person and is thereafter leased back
from the purchaser or transferee thereof by such Person or one of their
Subsidiaries.

 

“Securities Act” means the U.S. Securities Act
of 1933, as amended.

 

“Significant
Subsidiary” means, at any date of determination, any Subsidiary of the
Company that, together with its Subsidiaries, (i) for the most recent
fiscal year of the Company, accounted for more than 10% of the consolidated
revenues of the Company and its Subsidiaries or (ii) as of the end of such
fiscal year, was the owner of more than 10% of the consolidated assets of the
Company and its Subsidiaries, all as set forth on the most recently available
consolidated financial statements of the Company for such fiscal year.

 

A-42

 

“Stated Maturity”
means (i) with respect to any security, the date specified in such
security as the fixed date on which the final installment of principal of such
security is due and payable and (ii) with respect to any scheduled
installment of principal of or interest on any security, the date specified in
such security as the fixed date on which such installment is due and payable.

 

“Subordinated
Indebtedness” means any Indebtedness of the Company which is expressly
subordinated in right of payment to the Debt Securities, including premium and
accrued and unpaid interest.

 

“Subsidiary”
means, with respect to any Person, any Corporation, association or other business
entity (i) of which outstanding Capital Stock having at least a majority
of the votes entitled to be cast in the election of directors is owned,
directly or indirectly, by such Person and one or more other Subsidiaries of
such Person, or (ii) of which at least a majority of voting interest is
owned, directly or indirectly, by such Person and one or more other
Subsidiaries of such Person.

 

“Total Consolidated
Indebtedness” means, at the time of determination, an amount equal to the
aggregate amount of all Indebtedness of the Company and its Subsidiaries
outstanding (without duplication) as of the date of determination.

 

“Trade Payables”
means, with respect to any Person, any accounts payable or any other
Indebtedness or monetary obligation to trade creditors created, assumed or
Guaranteed by such Person or any of its Subsidiaries arising in the ordinary
course of business in connection with the acquisition of goods or services.

 

“Transaction Date”
means, with respect to the Incurrence of any Indebtedness by the Company or any
of its Subsidiaries, the date such Indebtedness is to be Incurred.

 

“Transfer Agent”
means any Person authorized by the Company to effectuate the exchange or
transfer of any Debt Security on behalf of the Company hereunder.

 

“Trust Indenture Act”
or “TIA” means the U.S. Trust Indenture Act of 1939 as in force at the
date as of which the Indenture was executed; provided,
however, that in the event the U.S. Trust Indenture Act of 1939 is
amended after such date, “Trust Indenture Act” or “TIA” means, to
the extent required by any such amendment, the U.S. Trust Indenture Act of 1939
as so amended.

 

“Trustee” means
Law Debenture Trust Company of New York, until a successor Trustee shall have
become such pursuant to the applicable provisions of the Indenture, and,
thereafter “Trustee” shall mean such successor Trustee.

 

“U.S. Dollars”, “United
States Dollars”, “U.S.$” and the symbol “$” each mean dollars
of the United States.

 

“U.S. Government
Obligations” means securities that are (x) direct obligations of the
United States for the payment of which its full faith and credit is pledged or
(y) obligations of a Person controlled or supervised by and acting as an
agency or instrumentality of the United

 

A-43

 

States the payment of
which is unconditionally guaranteed as a full faith and credit obligation by
the United States, which, in either case, are not callable or redeemable at the
option of the issuer thereof, and shall also include a depositary receipt
issued by a bank (as defined in Section 3(a)(2) of the Securities
Act) as custodian with respect to any such U.S. Government Obligation or a
specific payment of principal of or interest on any such U.S. Government
Obligation held by such custodian for the account of the holder of such
depositary receipt, provided that
(except as required by law) such custodian is not authorized to make any
deduction from the amount payable to the holder of such depositary receipt from
any amount received by the custodian in respect of the U.S. Government
Obligation or the specific payment of principal of or interest on the U.S.
Government Obligation evidenced by such depositary receipt.

 

“Voting Stock”
means, with respect to any Person, Capital Stock of any class or kind
ordinarily having the power to vote for the election of Board of Directors
members, managing directors, managers or other voting members of the governing
body of such Person.

 

“Wholly-Owned” is
defined to mean, with respect to any Subsidiary of any Person, such Subsidiary
if all the outstanding Capital Stock in such Subsidiary (other than any
directors’ qualifying shares or shares held by a Person, to the extent mandated
by applicable law) is owned by such Person, or one or more Wholly-Owned
Subsidiaries of such Person.

 

Terms used herein and not
defined herein shall have the meanings assigned to them in the Indenture.

 

A-44

 

[For Restricted Certificated Debt Securities Only]

 

ASSIGNMENT FORM

 

To assign this Debt Security, fill in the form below:

 

(I) or (we) assign and transfer this Debt Security to

 

	
   

  
	
  (Insert assignee’s social security or tax I.D. no.)

  
	
   

  
	
   

  
	
   

  
	
  (Print or write assignee’s name, address and zip
  code)

  

 

 

	
  and irrevocably appoint

  	
   

  	
   agent to transfer this Debt Security on the books
  of the Company.

  
	
  The agent may substitute another to act for him.

  
	
   

  
	
   

  	
  Your signature:

  	
   

  	
   

  
	
   

  	
   

  	
  (Sign exactly as your name appears on

  	
   

  
	
   

  	
   

  	
  the other side of this Debt Security)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Signature Guarantee:(10)

  	
   

  	
   

  
							

 

In connection with any transfer of any of the Debt
Securities evidenced by this certificate occurring prior to the date that is
three years after the later of the date of original issuance of such Debt
Securities and the last date, if any, on which such Debt Securities were owned
by the Company or any Affiliate of the Company, the undersigned confirms that
such Debt Securities are being transferred:

 

CHECK ONE BOX BELOW

 

(1)           o            to
the Company; or

 

(2)           o            pursuant
to and in compliance with Rule 144A under the Securities Act of 1933; or

 

(3)           o            pursuant
to and in compliance with Regulation S under the Securities Act of 1933; or

 

(10)         Signatures
must be guaranteed by an “eligible guarantor institution” meeting the
requirements of the Co-Registrar, which requirements include membership or
participation in the Security Transfer Agent Medallion Program (“STAMP”) or
such other “signature guarantee program” as may be determined by the
Co-Registrar in addition to, or in substitution for, STAMP, all in accordance
with the Securities Exchange Act of 1934, as amended.

 

A-45

 

(4)           o            to
an institutional “accredited investor” (as defined in Schedule 501(a)(1),
(2), (3) or (7) under the Securities Act of 1933) that has furnished
to the Trustee a signed letter containing certain representations and
agreements (the form of which letter can be obtained from the Trustee); or

 

(5)           o            pursuant
to an exemption from registration under the Securities Act provided by Rule 144
of the Securities Act of 1933; or

 

(6)           o            pursuant
to an effective registration statement under the Securities Act of 1933.

 

Unless one of the boxes is checked, the Trustee will
refuse to register any of the Debt Securities evidenced by this certificate in
the name of any person other than the registered holder thereof; provided,
however, that if box (3), (4) or (5) is checked, the Trustee
may require, prior to registering any such transfer of the Debt Securities such
legal opinions, certifications and other information as the Company has
reasonably requested to

 

confirm that such transfer is being made pursuant to
an exemption from or in a transaction not subject to, the registration
requirements of the Securities Act of 1933.

 

	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Signature Guarantee:(11)

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Signature must be
  guaranteed

  	
   

  	
  Signature

  	
   

  

 

 

(11)         Signatures
must be guaranteed by an “eligible guarantor institution” meeting the
requirements of the Co-Registrar, which requirements include membership or
participation in the Security Transfer Agent Medallion Program (“STAMP”) or
such other “signature guarantee program” as may be determined by the
Co-Registrar in addition to, or in substitution for, STAMP, all in accordance
with the Securities Exchange Act of 1934, as amended.

 

A-46

 

TO BE COMPLETED BY PURCHASER IF (2) ABOVE IS CHECKED

 

The undersigned
represents and warrants that it is purchasing this Debt Security for its own
account or an account with respect to which it exercises sole investment
discretion and that it and any such account is a “qualified institutional buyer”
within the meaning of Rule 144A under the Securities Act of 1933, and is
aware that the sale to it is being made in reliance on Rule 144A and
acknowledges that it has received such information regarding the Company as the
undersigned has requested pursuant to Rule 144A or has determined not to
request such information and that it is aware that the transfer is relying upon
the undersigned’s foregoing representations in order to claim the exemption
from registration provided by Rule 144A.

 

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NOTICE:

  	
  To
  be executed by

  
	
   

  	
   

  	
   

  	
  an executive
  officer

  
						

 

A-47

 

[TO BE ATTACHED TO GLOBAL DEBT SECURITIES]

 

SCHEDULE A 

SCHEDULE OF PRINCIPAL AMOUNT

 

The
initial principal amount at maturity of this Debt Security shall be
U.S. $              .  The following increases or decreases in the
principal amount at maturity of this Global Debt Security have been made:

 

	
  Date of

  Exchange

  	
   

  	
  Amount of

  decrease in

  Principal

  Amount at

  Maturity of this

  Global Debt

  Security

  	
   

  	
  Amount of

  increase in

  Principal

  Amount at

  Maturity of this

  Global Debt

  Security

  	
   

  	
  Principal

  Amount of this

  Global Debt

  Security

  following such

  decrease

  or increase

  	
   

  	
  Signature of

  authorized

  officer of

  Trustee or Debt

  Securities

  Custodian

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

A-48

 

EXHIBIT B

 

Form of Trustee’s Certificate of Authentication

 

This is one of the Debt
Securities referred to in the within-mentioned Indenture.

 

Dated:

 

 

	
   

  	
  LAW DEBENTURE TRUST COMPANY

  OF NEW YORK,

  
	
   

  	
  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Officer

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
					

 

B-1

 

EXHIBIT C

 

FORM OF TRANSFER CERTIFICATE

FOR TRANSFER FROM

[RESTRICTED GLOBAL REGISTERED DEBT SECURITY]

[RESTRICTED CERTIFICATED DEBT SECURITY]

TO REGULATION S GLOBAL REGISTERED DEBT SECURITY

(Transfers pursuant to § 3.9 (b)(ii)

or § 3.9 (b)(vii) of the Indenture)

 

[•]

Attn: 
Institutional Trust Services

 

	
  Re:

  	
   

  	
  Multicanal S.A.

  
	
   

  	
   

  	
  U.S.
  $[               
  ] [   ]% Debt Securities (the “Debt Securities”)

  	
   

  

 

Reference is hereby made
to the Indenture, dated as of
[         ], [2005] (the “Indenture”),
among Multicanal S.A., as Issuer, Law Debenture Trust Company of New York, as
Trustee, Co-Registrar and Principal Paying Agent, and HSBC Bank Argentina S.A.,
as Registrar and Paying Agent. Capitalized terms used but not defined herein
shall have the meanings given them in the Indenture.

 

This letter relates to
U.S. $[ ] aggregate principal amount at maturity of Debt Securities which are
held in the form of [a Restricted Global Debt Security (CUSIP No. [        ])
with the Depositary] [a Restricted Certificated Debt Security (CUSIP No. [
])] in the name of [name of transferor] (the “Transferor”) to effect the
transfer of the Debt Securities in exchange for an equivalent beneficial
interest in the Regulation S Global Debt Security (CINS No. [         ]).

 

In connection with such
request, the Transferor does hereby certify that such transfer has been
effected in accordance with the transfer restrictions set forth in the Debt
Securities and:

 

(i) with respect to
transfers made in reliance on Regulation S under the Securities Act, does
certify that:

 

1.     the offer of the Debt
Securities was not made to a person in the United States;

 

2.     the transaction was executed
in, on or through the facilities of a designated offshore securities market and
neither the Transferor nor any person acting on its behalf knows that the
transaction was prearranged with a buyer in the United States;

 

3.     no directed selling efforts
have been made in contravention of the requirements of Rule 903(b) or
904(b) of Regulation S under the Securities Act, as applicable; and

 

C-1

 

4.     the transaction is not part
of a plan or scheme to evade the registration requirements of the Securities
Act; and

 

(ii) with respect to
transfers made in reliance on Rule 144 under the Securities Act certify
that the Debt Securities being transferred are not a “restricted security” as
defined in Rule 144 under the Securities Act and that such Debt Securities
are being transferred in a transaction permitted by Rule 144 under the
Securities Act.

 

You and the Issuer are
entitled to rely upon this letter and are irrevocably authorized to produce
this letter or a copy hereof to any interested party in any administrative or
legal proceedings or official inquiry with respect to the matters covered hereby.
Terms used in this certificate have the meanings set forth in Regulation S
under the Securities Act.

 

	
   

  	
   

  	
   

  	
  [Name of Transferor]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  by

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  cc.

  	
  Multicanal S.A.

  Avalos 2057

  (C1431DPM) Buenos Aires

  Argentina

  Attn: [Director of Finance and Administration]

  	
   

  	
   

  	
   

  
						

 

C-2

 

EXHIBIT D

 

FORM OF TRANSFER CERTIFICATE FOR TRANSFER

FROM [REGULATION S GLOBAL REGISTERED DEBT SECURITY]

[RESTRICTED CERTIFICATED DEBT SECURITY]

TO RESTRICTED GLOBAL REGISTERED DEBT SECURITY

(Transfers pursuant to § 3.9(b)(iii)

or 3.9(b)(vi) of the Indenture)

 

[•]

Attn: 
Institutional Trust Services

 

 

	
  Re:

  	
   

  	
  Multicanal S.A.

  
	
   

  	
   

  	
  U.S.
  $[               
  ] [   ]% Debt Securities (the “Debt Securities”)

  	
   

  

 

Reference is hereby made
to the Indenture, dated as of
[        ], [2005] (the “Indenture”),
among Multicanal S.A., as Issuer, Law Debenture Trust Company of New York, as
Trustee, Co-Registrar and Principal Paying Agent, HSBC Bank Argentina, as
Registrar and Paying Agent.  Capitalized
terms used but not defined herein shall have the meanings given them in the
Indenture.

 

This letter relates to
U.S. $[                           ]
aggregate principal amount at maturity of Debt Securities which are held in the
form of [a Regulation S Global Debt Security (CINS No. [                     ])
with the Depositary] [a Restricted Certificated Debt Security (CUSIP No. [                     ])]
in the name of [name of transferor] (the “Transferor”) to effect the
transfer of the Debt Securities in exchange for an equivalent beneficial
interest in the Restricted Global Debt Security (CUSIP No. [                     ]).

 

In connection with such
request, and in respect of such Debt Securities, the Transferor does hereby
certify that such transfer has been effected in a transaction meeting the
requirements of Rule 144A under the Securities Act and (ii) to a
transferee that the Transferor reasonably believes is a “qualified
institutional buyer” within the meaning of Rule 144A under the Securities
Act, acquiring the Debt Securities for its own account or for one or more
accounts

 

D-1

 

as to which the
transferee exercises sole investment discretion and (iii) in accordance
with applicable securities laws of any state of the United States or any other
jurisdiction.

 

	
   

  	
   

  	
   

  	
  [Name of Transferor]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  by

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  cc.

  	
  Multicanal S.A. 

  Avalos 2057

  (C1431DPM) Buenos Aires

  Argentina

  Attn: [Director of Finance and Administration]

  	
   

  	
   

  	
   

  
						

 

D-2

 

EXHIBIT E-I

 

FORM OF TRANSFER CERTIFICATE FOR TRANSFER

FROM [RESTRICTED GLOBAL REGISTERED DEBT SECURITY]

[REGULATION S GLOBAL REGISTERED DEBT SECURITY]

[RESTRICTED CERTIFICATED DEBT SECURITY]

TO RESTRICTED CERTIFICATED DEBT SECURITY

(Transfers pursuant to § 3.9(b)(iv)

or § 3.9(b)(v) of the Indenture)

 

[•]

Attn: 
Institutional Trust Services

 

 

	
  Re:

  	
   

  	
  Multicanal S.A.
  U.S. $[       ] [    ]%
  Debt Securities (the “Debt Securities”)

  	
   

  

 

Reference
is hereby made to the Indenture, dated as of [ 
], [2005] (the “Indenture”), among Multicanal S.A., as Issuer,
Law Debenture Trust Company of New York, as Trustee, Co-Registrar and Principal
Paying Agent, and HSBC Bank Argentina S.A., as Registrar and Paying Agent.
Capitalized terms used but not defined herein shall have the meanings given
them in the Indenture.

 

This letter relates to
U.S. $[      ] aggregate principal amount at
maturity of Debt Securities which are held in the form of the [Restricted
Global Debt Security (CUSIP No. [               ])
with the Depositary] [Regulation S Global Debt Security (CINS No. [                    ])
with the Depositary] [Restricted Certificated Debt Security (CUSIP No. [                    ])]
in the name of [name of transferor] (the “Transferor”) to effect the
transfer of the Debt Securities in exchange for a Restricted Certificated Debt
Security (CUSIP No. [                    ])having
such aggregate principal amount at maturity.

 

In connection with such
request, and in respect of such Debt Securities the Transferor does hereby
certify that such Debt Securities are being transferred in accordance with (i) the
transfer restrictions set forth in the Debt Securities and (ii) to a
transferee that the Transferor reasonably believes is an institutional “accredited
investor” (as defined in Rule 501 (a) (1), (2), (3) or (7) of
Regulation D under the Securities Act) and is acquiring at least U.S.$200,000
principal amount of Debt Securities for its own account or for one or more

 

E-I-1

 

accounts as to which the
transferee exercises sole investment discretion and (iii) in accordance
with applicable securities laws of any state of the United States or any other
jurisdiction.

 

	
   

  	
   

  	
   

  	
  [Name of Transferor]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  by

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  cc.

  	
  Multicanal S.A. 

  Avalos 2057

  (C1431DPM) Buenos Aires

  Argentina

  Attn: [Director of Finance and Administration]

  	
   

  	
   

  	
   

  
						

 

E-I-2

 

EXHIBIT E-II

 

FORM OF TRANSFER CERTIFICATE FOR TRANSFER

FROM [RESTRICTED GLOBAL REGISTERED DEBT SECURITY]

[REGULATION S GLOBAL REGISTERED DEBT SECURITY]

[RESTRICTED CERTIFICATED DEBT SECURITY] TO

RESTRICTED CERTIFICATED DEBT SECURITY

(Transfers pursuant to § 3.9(b)(iv)

and § 3.9(b)(v) of the Indenture)

 

[•]

Attn: 
Institutional Trust Services

 

 

	
  Re:

  	
   

  	
  Multicanal S.A.

  
	
   

  	
   

  	
  U.S.
  $[               
  ] [   ]% Debt Securities (the “Debt Securities”)

  	
   

  

 

Reference is hereby made
to the Indenture, dated as of [  ],
[2005] (the “Indenture”), among Multicanal S.A., as Issuer, Law
Debenture Trust Company of New York, as Trustee, Co-Registrar and Principal
Paying Agent, HSBC Bank Argentina S.A., as Registrar and Paying Agent.
Capitalized terms used but not defined herein shall have the meanings given
them in the Indenture.

 

This letter relates to
U.S.$[    ] aggregate principal amount at maturity of Debt
Securities which are held in the form of the [Restricted Global Debt Security
(CUSIP No. [                   ])
with the Depositary] [Regulation S Global Debt Security (CINS No. [                   ])
with the Depositary] [Restricted Certificated Debt Security (CUSIP No. [         ])]
in the name of [name of transferor] (the “Transferor”) to effect the
transfer of the Debt Securities in exchange for a Restricted Certificated Debt
Security (CUSIP No. [                   ])
having such aggregate principal amount at maturity to the undersigned.

 

In connection with such
request, and in respect of such Debt Securities, we confirm that:

 

1.             We
understand that the Debt Securities have not been and will not be registered
under the Securities Act, and are being sold to us in a transaction that is
exempt from the registration requirements of the Securities Act.

 

2.             We are a
corporation, partnership or other entity having such knowledge and experience
in financial and business flatters as to be capable of evaluating the merits
and risks of an investment in the Debt Securities, and we are (or any account
for which we are purchasing under paragraph 4 below is) an institutional
accredited investor as defined in Rule 501(a)(1), (2), (3) or (7) under
the Securities Act, able to bear the economic risk of our proposed investment
in the Debt Securities.

 

E-II-1

 

3.             We are
acquiring the Debt Securities for our own account (or for accounts as to which
we exercise sole investment discretion and have authority to make, and do make,
the statements contained in this letter) and not with a view to any
distribution of the Debt Securities, subject, nevertheless, to the
understanding that the disposition of our property shall at all times be and
remain within our control.

 

4.             We are,
and each account (if any) for which we are purchasing Debt Securities is,
purchasing Debt Securities having an aggregate principal amount of not less
than U.S.$200,000.

 

5.             We
understand that (a) the Debt Securities will be delivered to us in
registered form only and that the certificate delivered to us in respect of the
Debt Securities will bear a legend substantially to the following effect:

 

THIS DEBT SECURITY HAS NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). THE HOLDER HEREOF,
BY PURCHASING THIS DEBT SECURITY, AGREES FOR THE BENEFIT OF THE COMPANY THAT
THIS DEBT SECURITY MAY NOT BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED (X)
PRIOR TO THE THIRD ANNIVERSARY OF THE ISSUANCE HEREOF (OR ANY PREDECESSOR DEBT
SECURITY HERETO) OR (Y) BY ANY HOLDER THAT WAS AN AFFILIATE OF THE COMPANY AT
ANY TIME DURING THE THREE MONTHS PRECEDING THE DATE OF SUCH TRANSFER, IN EITHER
CASE OTHER THAN (1) TO THE COMPANY, (2) SO LONG AS THIS DEBT SECURITY
IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE
144A”) TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED
INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A PURCHASING FOR ITS OWN
ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS
GIVEN THAT THE RESALE PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON
RULE 144A (AS INDICATED BY THE BOX CHECKED BY THE TRANSFEROR ON THE CERTIFICATE
OF TRANSFER ON THE REVERSE OF THIS DEBT SECURITY), (3) IN AN OFFSHORE
TRANSACTION IN ACCORDANCE WITH REGULATION S UNDER THE SECURITIES ACT (AS
INDICATED BY THE BOX CHECKED BY THE TRANSFEROR ON THE CERTIFICATE OF TRANSFER
ON THE REVERSE OF THIS DEBT SECURITY), (4) TO AN INSTITUTION THAT IS AN “ACCREDITED
INVESTOR” AS DEFINED IN RULE 501 (A)(1), (2), (3) OR (7) UNDER THE
SECURITIES ACT (AS INDICATED BY THE BOX CHECKED BY THE TRANSFEROR ON THE
CERTIFICATE OF TRANSFER ON THE REVERSE OF THIS DEBT SECURITY) THAT IS ACQUIRING
THIS DEBT SECURITY FOR INVESTMENT PURPOSES AND NOT FOR DISTRIBUTION, AND A
CERTIFICATE IN THE FORM ATTACHED TO THIS DEBT SECURITY IS DELIVERED BY THE
TRANSFEREE TO THE COMPANY AND THE TRUSTEE, (5) PURSUANT TO AN EXEMPTION
FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 (IF

 

E-II-2

 

APPLICABLE)
UNDER THE SECURITIES ACT, OR (6) PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH ANY
APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. AN INSTITUTIONAL
ACCREDITED INVESTOR HOLDING THIS DEBT SECURITY AGREES THAT IT WILL FURNISH TO
THE COMPANY AND THE TRUSTEE SUCH CERTIFICATES AND OTHER INFORMATION AS THEY MAY REASONABLY
REQUIRE TO CONFIRM THAT ANY TRANSFER BY IT OF THIS DEBT SECURITY COMPLIES WITH
THE FOREGOING RESTRICTIONS. THE HOLDER HEREOF, BY PURCHASING THIS DEBT
SECURITY, REPRESENTS AND AGREES FOR THE BENEFIT OF THE COMPANY THAT IT IS (1) A
QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A OR (2) AN
INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501 (a)(1),
(2), (3) OR (7) UNDER THE SECURITIES ACT AND THAT IT IS HOLDING THIS
DEBT SECURITY FOR INVESTMENT PURPOSES AND NOT FOR DISTRIBUTION OR (3) A
NON-U.S. PERSON OUTSIDE THE UNITED STATES WITHIN THE MEANING OF (OR AN ACCOUNT
SATISFYING THE REQUIREMENTS OF PARAGRAPH (O)(2) OF RULE 902 UNDER)
REGULATION S UNDER THE SECURITIES ACT.

 

and (b) such certificates will be reissued
without the foregoing legend only in accordance with the terms of the
Indenture.

 

6.             We agree
that in the event that at some future time we wish to dispose of any of the
Debt Securities, we will not do so unless:

 

(a)           the
Debt Securities are sold to the Issuer or any Subsidiary thereof;

 

(b)           the Debt
Securities are sold to a qualified institutional buyer in compliance with Rule 144A
under the Securities Act;

 

(c)           the Debt
Securities are sold to an institutional accredited investor, as defined in Rule 501
(a) (1), (2), (3) or (7) under the Securities Act, acquiring at
least U.S.$200,000 principal amount of the Debt Securities that, prior to such
transfer, furnishes to the Trustee a signed letter containing certain
representations and agreements relating to the restrictions on transfer of the
Debt Securities (the form of which letter can be obtained from such Trustee);

 

(d)           the Debt
Securities are sold outside the United States in compliance with Rule 903
or Rule 904 of Regulation S under the Securities Act;

 

(e)           the Debt
Securities are sold by us pursuant to Rule 144 under the Securities Act;
or

 

E-II-3

 

(f)            the Debt
Securities are sold pursuant to an effective registration statement under the
Securities Act.

 

	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  
	
   

  	
  [PURCHASER]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  cc:

  	
  Multicanal S.A. 

  Avalos 2057

  (C1431DPM) Buenos Aires

  Argentina

  Attn: [Director of Finance and Administration]

  	
   

  	
   

  
					

 

E-II-4

 

EXHIBIT F-I

 

FORM OF CERTIFICATE TO BE GIVEN BY

PERSON ENTITLED TO RECEIVE BEARER SECURITY

OR TO OBTAIN INTEREST PAYABLE PRIOR

TO THE EXCHANGE DATE

 

CERTIFICATE

 

[Insert title or sufficient description

of Debt Securities to be delivered]

 

This is to certify that
as of the date hereof, and except as set forth below, the above-captioned Debt
Securities held by you for our account (i) are owned by person(s) that are
not citizens or residents of the United States, domestic partnerships, domestic
corporations or any estate or trust the income of which is subject to United
States federal income taxation regardless of its source (“United States
person(s)”), (ii) are owned by United States person(s) that are (a) foreign
branches of United States financial institutions (financial institutions, as
defined in United States Treasury Regulations Section 2.165-12(c)(1)(v) are
herein referred to as “financial institutions”) purchasing for their own
account or for resale, or (b) United States person(s) who acquired the
Debt Securities through foreign branches of United States financial
institutions and who hold the Debt Securities through such United States
financial institutions on the date hereof (and in either case (a) or (b),
each such United States financial institution hereby agrees, on its own behalf
or through its agent, that you may advise Multicanal S.A. or its agent that
such financial institution will comply with the requirements of Section 165(j)(3)(A),
(B) or (C) of the United States Internal Revenue Code of 1986, as
amended, and the regulations thereunder), or (iii) are owned by United
States or foreign financial institution(s) for purposes of resale during the
restricted period (as defined in United States Treasury Regulations

Section 1.1 63-5(c)(2)(i)(D)(7)), and, in addition, if the owner is a
United States or foreign financial institution described in clause (iii) above
(whether or not also described in clause (i) or (ii)), this is to further
certify that such financial institution has not acquired the Debt Securities
for purposes of resale directly or indirectly to a United States person or to a
person within the United States or its possessions.

 

As used herein, “United
States” means the United States of America (including the states and the
District of Columbia); and its “possessions” include Puerto Rico, the
U.S. Virgin Islands, Guam, American Samoa, Wake Island and the Northern Mariana
Islands.

 

We undertake to advise
you promptly by tested telex on or prior to the date on which you intend to
submit your certification relating to the above-captioned Debt Securities held
by you for our account in accordance with your Operating Procedures if any
applicable statement herein is not correct on such date, and in the absence of
any such notification it may be assumed that this certification applies as of
such date.

 

This certificate excepts
and does not relate to U.S.$[  ] of such interest in the
above-captioned Debt Securities in respect of which we are not able to certify
and as to which

 

F-I-1

 

we understand an exchange
for an interest in a permanent Global Security or an exchange for and delivery
of definitive Debt Securities (or, if relevant, collection of any interest)
cannot be made until we do so certify.

 

We understand that this
certificate may be required in connection with certain tax legislation in the
United States. If administrative or legal proceedings are commended or
threatened in connection with which this certificate is or would be relevant,
we irrevocably authorize you to produce this certificate or a copy thereof to
any interested party in such proceedings.

 

Dated:

 

[To be dated no earlier than the 15th

day prior to (i) the Exchange Date or

(ii) the relevant Interest Payment

Date occurring prior to the Exchange

Date, as applicable]

 

	
   

  	
   

  	
   

  	
  [Name of Person Making Certification]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (Authorized Signatory)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  
							

 

F-I-2

 

EXHIBIT F-II

 

FORM OF CERTIFICATE TO BE GIVEN BY EUROCLEAR AND

CLEARSTREAM, LUXEMBOURG IN

CONNECTION WITH THE EXCHANGE OF A PORTION OF A

TEMPORARY GLOBAL BEARER DEBT SECURITY OR TO OBTAIN INTEREST

PAYABLE PRIOR TO THE EXCHANGE DATE

 

CERTIFICATE

 

[Insert title or sufficient description

of Debt Securities to be delivered]

 

This is to certify that
based solely on written certifications that we have received in writing, by
tested telex or by electronic transmission from each of the persons appearing
in our records entitled to a portion of the principal amount set forth below
(our “Member Organizations”) substantially in the form attached hereto,
as of the date hereof, U.S.$[  ] principal amount of the
above-captioned Debt Securities (i) is owned by person(s) that are not
citizens or residents of the United States, domestic partnerships, domestic
corporations or any estate or trust income of which is subject to United States
federal income taxation regardless of its source (“United States person(s)”),
(ii) is owned by United States person(s) that are (a) foreign
branches of United States financial institutions (financial institutions, as
defined in U.S. Treasury Regulations Section 1.165-12(c)(1)(v) are
herein referred to as “financial institutions”) purchasing for their own
account or for resale, or (b) United States person(s) who acquired the
Debt Securities through foreign branches of United States financial
institutions and who hold the Debt Securities through such United States
financial institutions on the date hereof (and in either case (a) or (b),
each such financial institution has agreed, on its own behalf or through its
agent, that we may advise Multicanal S.A. or its agent that such financial
institution will comply with the requirements of Section 165(j)(3)(A), (B) or
(C) of the Internal Revenue Code of 1986, as amended, and the regulations
thereunder), or (iii) is owned by United States or foreign financial
institution(s) for purposes of resale during the restricted period (as defined
in United States Treasury Regulations Section 1.163-5(c)(2)(i)(D)(7)) and,
to the further effect, that financial institutions described in clause (iii) above
(whether or not also described in clause (i) or (ii)) have certified that
they have not acquired the Debt Securities for purposes of resale directly or
indirectly to a United States person or to a person within the United States or
its possessions.

 

As used herein, “United
States” means the United States of America (including the states and the
District of Columbia); and its “possessions” include Puerto Rico, the
U.S. Virgin Islands, Guam, American Samoa, Wake Island and the Northern Mariana
Islands.

 

We further certify that (i) we
are not making available herewith for exchange (or, if relevant, collection of
any interest) any portion of the temporary global Debt Security representing
the above-captioned Debt Securities excepted in the above-referenced
certificates of Member Organizations and (ii) as of the date hereof we
have not received any notification from any of our Member Organizations or the
effect that the statements made by such Member Organizations with respect to
any portion of the part submitted herewith for exchange (or, if

 

F-1

 

relevant, collection of
any interest) are no longer true and cannot be relied upon as of the date
hereof.

 

We understand that this
certification is required in connection with certain tax legislation in the
United States. If administrative or legal proceedings are commenced or
threatened in connection with which this certificate is or would be relevant,
we irrevocably authorize you to produce this certificate or a copy thereof to
any interested party in such proceedings.

 

Dated:

 

[To be dated no earlier than the Exchange

Date or the relevant Interest Payment Date

occurring prior to the Exchange Date, as

applicable]

 

	
   

  	
  [Euroclear Bank S.A./N.V., as

  	
   

  
	
   

  	
  Operator of the Euroclear System]

  	
   

  
	
   

  	
  [Clearstream Banking, société anonyme]

  	
   

  
	
   

  	
  [Depository Trust Company]

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Authorized Signatory)

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

F-2

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