EXHIBIT 10.3

SEVENTH AMENDMENT
TO
SENIOR CONVERTIBLE LOAN AND SECURITY AGREEMENT

 
THIS SEVENTH AMENDMENT TO SENIOR CONVERTIBLE LOAN AND SECURITY AGREEMENT is made
and entered into as of July 6, 2005 , by and between Acceris Communications Inc.
(formerly known as I-Link Incorporated), a Florida corporation (the “Borrower”)
and Counsel Corporation, an Ontario corporation (“Counsel Corp”), and Counsel
Capital Corporation, an Ontario corporation (“Counsel Capital”), (collectively
hereinafter referred to as the “Parties”).

WHEREAS, Counsel Communications, LLC, a Delaware limited liability company
(“CCOM”) having assigned ninety percent (90%) of its right title and interests
in the Loan Agreement (as hereinafter defined) subject to the Amended Debt
Restructuring Agreement (as hereinafter defined) on October 31, 2001, to Counsel
Corp and ten percent (10%) of its right, title and interests to Counsel Capital
(hereinafter Counsel Corp and Counsel Capital collectively referred to as the
“Lender”); and

WHEREAS, the Borrower and the Lender are Parties to a Senior Convertible Loan
and Security Agreement, dated March 1, 2001 as amended by the First, Second,
Third, Fourth, Fifth and Sixth Amendments to Senior Convertible Loan and
Security Agreement, dated May 8, 2001, March 1, 2003, November 19, 2003, June
30, 2004, December 7, 2004, and April 28, 2005 (collectively the “Loan
Agreement”) and subject of the Amended and Restated Debt Restructuring Agreement
dated October 15, 2002 between Borrower, Counsel Corporation (US), a Delaware
corporation, and CCOM (the “Amended Debt Restructuring Agreement”); and

WHEREAS, the Parties, inter alia, desire to amend the Loan Agreement effective
as of May 16, 2005 (the “Effective Date”) as provided herein.

NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of
which is hereby acknowledged, the Parties agree as follows:

1. Extension of Maturity Date. Effective as of the Effective Date, Section 4 of
the Loan Agreement is hereby amended and restated in its entirety to read as
follows:

“Section 4. Term. This Agreement shall be effective from the date hereof and
shall terminate on April 30, 2006, unless terminated earlier pursuant to the
default provisions of this Agreement (the “Maturity Date”). Principal and
interest shall be due and payable on the Maturity Date.” Notwithstanding the
forgoing, upon the legal Closing of the transaction with North Central Equity
LLC for the sale of substantially all of the telecommunication assets of Acceris
Communications Corp, this Agreement shall terminate on December 31, 2006 and
such date shall become the Maturity Date unless terminated earlier pursuant to
the default provisions of this Agreement.

2.  Effect on Loan Agreement and Loan Note. This Seventh Amendment is not
intended, nor shall it be construed, as a modification or termination of the
Amended Debt Restructuring Agreement. Except as expressly provided herein, the
Loan Agreement and the Loan Note annexed thereto are hereby ratified and
confirmed and remain in full force and effect in accordance with their
respective terms.

[See attached signature page]

 
 

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Signature page
to
Seventh Amendment to Senior Convertible Loan and Security Agreement
dated as of July 6, 2005

IN WITNESS WHEREOF, the Borrower and the Lender have executed this Seventh
Amendment as the date first set forth above.

ACCERIS COMMUNICATIONS INC.
 
 
By:__________________________
Name:
Title:
 
 
COUNSEL CORPORATION
 
 
By:__________________________
Name:
Title:
 
COUNSEL CAPITAL CORPORATION
 
 
By:__________________________
Name:
Title:

 
 

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