NOTICE OF DEFAULT

Default Notice Forbearance Agreement

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Title: NOTICE OF DEFAULT
Date: 4/18/2007

AMERIKA SAMOA BANK

17 April, 2007

Mr M Rollins

Chief Financial Officer

Elandia, Inc.

1500 Cordova Road, Suite 312

Fort Lauderdale, FL 33316

U.S.A.

Dear Mr Rollins

NOTICE OF EVENT OF DEFAULT- AST Telecom, LLC (and Parent)

I refer to our loan documentation dated 30 October 2006.

The following events of default has occurred and the Bank is entitled to exercise the rights given to it upon default:


• The Interest Cover ratio to be no less than 1.50 times.

Calculated as: EBIT
Interest Expense

Based on the audited financial statements for the year ended 31 December 2006, the above covenant was breached, with calculation as follows:

(2,088)

743

= (2.81)


• The Debt Service Cover to be no more than 2.50 to 1.

Calculated as: Total Debt
EBITDA

Based on the audited financial statements for the year ended 31 December 2006, the above covenant was breached, with calculation as follows:

5,013

1,882

= 2.66:1


•&nb

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