Exhibit 10.9


 


FIRST LOAN
MODIFICATION AGREEMENT


 


This First Loan Modification
Agreement (this “Loan Modification Agreement”) is entered into as of December 15, 2011 (the “First
Loan Modification Effective Date”), by and between (i) SILICON VALLEY BANK, a California corporation with a loan
production office located at 275 Grove Street, Suite 2-200, Newton, Massachusetts 02466 (“Bank”), and (ii) GLOBAL
TELECOM & TECHNOLOGY, INC., a Delaware corporation (“GTTI”), GLOBAL TELECOM & TECHNOLOGY AMERICAS,
INC., a Virginia corporation (“GTTA”), each with offices located at 8484 Westpark Drive, Suite 720, McLean,
Virginia 22102, PACKETEXCHANGE (USA), INC., a Delaware corporation (“PEUSA”), PACKETEXCHANGE, INC.,
a Delaware corporation (“PEINC”) and WBS CONNECT, LLC, a Colorado limited
liability company with offices located at 8400 E. Crescent Parkway, Suite 600, Greenwood Village, Colorado 80111 (“WBS”,
and together with GTTI, GTTA, PEINC and PEUSA, individually and collectively, jointly and severally, the “Borrower”).


 


1.DESCRIPTION
OF EXISTING INDEBTEDNESS AND OBLIGATIONS. Among other indebtedness and obligations which may be owing by Borrower to Bank,
Borrower is indebted to Bank pursuant to a loan arrangement dated as of June 29, 2011, evidenced by, among other documents, a certain
Loan and Security Agreement dated as of June 29, 2011, between Borrower and Bank (as amended, the “Loan Agreement”).
Capitalized terms used but not otherwise defined herein shall have the same meaning as in the Loan Agreement.


 


2.DESCRIPTION
OF COLLATERAL. Repayment of the Obligations is secured by (a) the Collateral as described in the Loan Agreement and (b) the
Intellectual Property Collateral as defined in each Intellectual Property Security Agreement between each Borrower and Bank (each,
as amended, an “IP Agreement”) (together with any other collateral security granted to Bank, the “Security
Documents”)


 


Hereinafter, the Security Documents, together
with all other documents evidencing or securing the Obligations shall be referred to as the “Existing Loan Documents”.


 


3. DESCRIPTION OF CHANGE IN TERMS.


 


		A.	Modifications to Loan Agreement.



 


		1	The Loan Agreement shall be amended by deleting the text appearing as Sections 2.1.2, 2.1.3 and
2.1.4, and inserting in lieu thereof the following:



 


“2.1.2[Reserved.]


2.1.3[Reserved.]


2.1.4[Reserved.]”


 


		2	The Loan Agreement shall be amended by deleting the following text appearing as Section 2.2 thereof:



 


“2.2Overadvances.
If, at any time, the sum of (a) the outstanding principal amount of any Advances (including any amounts used for Cash Management
Services); plus (b) the face amount of any outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit
and any Letter of Credit Reserve); plus (c) the FX Reduction Amount exceeds the lesser of either the Revolving Line or the
Borrowing Base (such excess amount being an “Overadvance”), Borrower shall immediately pay to Bank in cash such
Overadvance. Without limiting Borrower’s obligation to repay Bank any amount of the Overadvance, Borrower agrees to pay Bank
interest on the outstanding amount of any Overadvance, on demand, at the Default Rate.”


 


and inserting in lieu
thereof the following:


 






    	1



    	 



    

 


Exhibit 10.9


 


 





“2.2Overadvances.
If, at any time, the sum of the outstanding principal amount of any Advances exceeds the lesser of either the Revolving Line
or the Borrowing Base (such excess amount being an “Overadvance”), Borrower shall immediately pay to Bank in
cash such Overadvance. Without limiting Borrower’s obligation to repay Bank any amount of the Overadvance, Borrower agrees
to pay Bank interest on the outstanding amount of any Overadvance, on demand, at the Default Rate.”



 


		3	The Loan Agreement shall be amended by deleting the following text appearing as Section 2.4(c)
thereof:



 


“(c)Letter
of Credit Fee. Bank’s customary fees and expenses for the issuance or renewal of Letters of Credit, upon the issuance
of such Letter of Credit, each anniversary of the issuance during the term of such Letter of Credit, and upon the renewal of such
Letter of Credit by Bank;”


 


and inserting
in lieu thereof the following:


 


“(c)[Reserved];”






 


		4	The Loan Agreement shall be amended by deleting the following text appearing as Section 3.4 thereof:



 


“3.4Procedures
for Borrowing; Advances. Subject to the prior satisfaction of all other applicable conditions to the making of an Advance set
forth in this Agreement, to obtain an Advance (other than Advances under Sections 2.1.2 or 2.1.4), Borrower shall notify Bank (which
notice shall be irrevocable) by electronic mail, facsimile, or telephone by 3:00 p.m. Eastern time on the Funding Date of the Advance.
Together with any such electronic or facsimile notification, Borrower shall deliver to Bank by electronic mail or facsimile a completed
Transaction Report executed by a Responsible Officer or his or her designee. Bank may rely on any telephone notice given by a person
whom Bank believes is a Responsible Officer or designee. Bank shall credit Advances to the Designated Deposit Account. Bank may
make Advances under this Agreement based on instructions from a Responsible Officer or his or her designee or without instructions
if the Advances are necessary to meet Obligations which have become due.”


 


and inserting in lieu thereof
the following:


 


“3.4Procedures
for Borrowing; Advances. Subject to the prior satisfaction of all other applicable conditions to the making of an Advance set
forth in this Agreement, to obtain an Advance, Borrower shall notify Bank (which notice shall be irrevocable) by electronic mail,
facsimile, or telephone by 3:00 p.m. Eastern time on the Funding Date of the Advance. Together with any such electronic or facsimile
notification, Borrower shall deliver to Bank by electronic mail or facsimile a completed Transaction Report executed by a Responsible
Officer or his or her designee. Bank may rely on any telephone notice given by a person whom Bank believes is a Responsible Officer
or designee. Bank shall credit Advances to the Designated Deposit Account. Bank may make Advances under this Agreement based on
instructions from a Responsible Officer or his or her designee or without instructions if the Advances are necessary to meet Obligations
which have become due.”


 






    	2



    	 



    

 


Exhibit 10.9


 


		5	The Loan Agreement shall be amended by deleting the following text appearing as Section 4.1 thereof:



 


“4.1Grant
of Security Interest. Each Borrower hereby grants Bank, to secure the payment and performance in full of all of the Obligations
(including, without limitation, Obligations arising under the European Loan Agreement), a continuing security interest in, and
pledges to Bank, the Collateral, wherever located, whether now owned or hereafter acquired or arising, and all proceeds and products
thereof.”


 


and inserting in lieu thereof the following:


 


“4.1Grant
of Security Interest. Borrower hereby grants Bank, to secure the payment and performance in full of all of the Obligations,
a continuing security interest in, and pledges to Bank, the Collateral, wherever located, whether now owned or hereafter acquired
or arising, and all proceeds and products thereof.


 


Borrower acknowledges that it
previously has entered, and/or may in the future enter, into Bank Services Agreements with Bank. Regardless of the terms of any
Bank Services Agreement, Borrower agrees that any amounts Borrower owes Bank thereunder shall be deemed to be Obligations hereunder
and that it is the intent of Borrower and Bank to have all such Obligations secured by the first priority perfected security interest
in the Collateral granted herein (subject only to Permitted Liens that expressly have superior priority to Bank’s Lien in
this Agreement).


 


If this Agreement is terminated,
Bank’s Lien in the Collateral shall continue until the Obligations (other than inchoate indemnity obligations) are satisfied
in full, and at such time, Bank shall, at Borrower’s sole cost and expense, terminate its security interest in the Collateral
and all rights therein shall revert to Borrower. In the event (a) all Obligations (other than inchoate indemnity obligations),
except for Bank Services, are satisfied in full, and (b) this Agreement is terminated, Bank shall terminate the security interest
granted herein upon Borrower providing cash collateral acceptable to Bank in its good faith business judgment for Bank Services,
if any. In the event such Bank Services consist of outstanding Letters of Credit, Borrower shall provide to Bank cash collateral
in an amount equal to 105% (110% if such letters of credit is denominated in a currency other than Dollars), of the Dollar Equivalent
of the face amount of all such Letters of Credit plus all interest, fees, and costs due or to become due in connection therewith
(as estimated by Bank in its good faith business judgment), to secure all of the Obligations relating to such Letters of Credit.”


 


		6	The Loan Agreement shall be amended by deleting the following text appearing in Section 4.2 thereof:



 


“If this Agreement is terminated,
Bank’s Lien in the Collateral shall continue until the Obligations (other than inchoate liabilities, but including, without
limitation, Obligations arising under the European Loan Agreement) are repaid in full in cash. Upon payment in full in cash of
the Obligations (other than inchoate liabilities, but including, without limitation, Obligations arising under the European Loan
Agreement) and at such time as Bank’s obligation to make Credit Extensions has terminated, Bank shall, at Borrower’s
sole cost and expense, release its Liens in the Collateral and all rights therein shall revert to Borrower.”


 


		7	The Loan Agreement shall be amended by deleting the following text appearing as Section 6.9(a)
thereof:



 


“(a)Liquidity.GTTI
and its direct and indirect Domestic Subsidiaries shall at all times maintain unrestricted domestic cash at Bank plus the
unused availability under the Borrowing Base (the “Minimum Liquidity”) of at least the amounts indicated below
for the periods indicated below:






    	3



    	 



    

 


Exhibit 10.9


 


 


	Period	Minimum Liquidity
	 	 
	Effective Date through and including July 31, 2011	$3,000,000
	 	 
	August 1, 2011 through and including September 30, 2011	$3,500,000
	 	 
	October 1, 2011 through and including April 30, 2012	$4,500,000
	 	 
	May 1, 2012 through and including August 31, 2012	$5,000,000
	 	 
	September 1, 2012 and at all times thereafter	$5,500,000”


 


and inserting in lieu thereof
the following:


 


“(a)Liquidity.GTTI
and its direct and indirect Domestic Subsidiaries shall at all times maintain unrestricted domestic cash at Bank plus the
unused availability under the Borrowing Base (the “Minimum Liquidity”) of at least the amounts indicated below
for the periods indicated below:


 


	Period	Minimum Liquidity
	 	 
	Effective Date through and including July 31, 2011	$3,000,000
	 	 
	August 1, 2011 through and including September 30, 2011	$3,500,000
	 	 
	October 1, 2011 through and including February 29, 2012	$3,250,000
	 	 
	March 1, 2012 through and including August 31, 2012	$4,000,000
	 	 
	September 1, 2012 through and including November 30, 2012	$4,500,000
	 	 
	December 1, 2012 through and including February 28, 2013 	$5,000,000
	 	 
	March 1, 2013 and at all times thereafter	$5,500,000”
	 	 



 



    	4



    	 



    

 

Exhibit 10.9


 


 


		8	The Loan Agreement shall be amended by deleting the following clauses (c) and (d) from Section 9.1 thereof:



 


“(c)demand
that Borrower (i) deposit cash with Bank in an amount equal to (i) 105% if the Letter of Credit is denominated in U.S. Dollars,
or (ii) 110% if the Letter of Credit is denominated in a currency other than U.S. Dollars, of the Dollar Equivalent of the aggregate
face amount of all Letters of Credit remaining undrawn plus all interest, fees, and costs due or to become due in connection therewith
(as estimated by Bank in its good faith business judgment), to secure all of the Obligations relating to such Letters of Credit,
as collateral security for the repayment of any future drawings under such Letters of Credit, and Borrower shall forthwith deposit
and pay such amounts, and (ii) pay in advance all letter of credit fees scheduled to be paid or payable over the remaining term
of any Letters of Credit; provided, however, if an Event of Default described in Section 8.5 occurs, the obligation
of Borrower to cash collateralize all Letters of Credit remaining undrawn shall automatically become effective without any action
by Bank;


 


(d)terminate
any FX Forward Contracts;”


 


and inserting
in lieu thereof the following:


 


“(c)demand
that Borrower (i) deposit cash with Bank in an amount equal to (i) 105% if the letter of credit is denominated in U.S. Dollars,
or (ii) 110% if the letter of credit is denominated in a currency other than U.S. Dollars, of the Dollar Equivalent of the aggregate
face amount of all letters of credit remaining undrawn plus all interest, fees, and costs due or to become due in connection therewith
(as estimated by Bank in its good faith business judgment), to secure all of the Obligations relating to such letters of credit,
as collateral security for the repayment of any future drawings under such letters of credit, and Borrower shall forthwith deposit
and pay such amounts, and (ii) pay in advance all letter of credit fees scheduled to be paid or payable over the remaining term
of any letters of credit; provided, however, if an Event of Default described in Section 8.5 occurs, the obligation
of Borrower to cash collateralize all letters of credit remaining undrawn shall automatically become effective without any action
by Bank;


 


(d)terminate
any foreign exchange forward contracts;”


 


		9	The Loan Agreement shall be amended by deleting the following text appearing as Section 12.9 thereof:



 


“12.9Survival.
All covenants, representations and warranties made in this Agreement continue in full force until this Agreement has terminated
pursuant to its terms and all Obligations (other than inchoate indemnity obligations and any other obligations which, by their
terms, are to survive the termination of this Agreement) have been paid in full and satisfied. The obligation of Borrower in Section
12.3 to indemnify Bank shall survive until the statute of limitations with respect to such claim or cause of action shall have
run.”


 


and inserting
in lieu thereof the following:


 


“12.9Survival.
All covenants, representations and warranties made in this Agreement continue in full force until this Agreement has terminated
pursuant to its terms and all Obligations (other than inchoate indemnity obligations and any other obligations which, by their
terms, are to survive the termination of this Agreement) have been paid in full and satisfied. Without limiting the foregoing,
except as otherwise provided in Section 4.1, the grant of security interest by Borrower in Section 4.1 shall survive until the
termination of all Bank Services Agreements. The obligation of Borrower in Section 12.3 to indemnify Bank shall survive until the
statute of limitations with respect to such claim or cause of action shall have run.”






    	5



    	 



    

 


Exhibit 10.9


 


 


		10	The Loan Agreement shall be amended by inserting the following definitions, each in its appropriate
alphabetical order, in Section 13.1 thereof:



 


““Bank
Services” are any products and/or credit services facilities provided to Borrower by Bank, including, without limitation,
all letters of credit, guidance facilities, cash management services (including, without limitation, merchant services, direct
deposit of payroll, business credit cards and check cashing services) and foreign exchange services as any such products or services
may be identified in Bank’s various agreements related thereto (each, a “Bank Services Agreement”).


 


“First Loan Modification Effective Date”
is December , 2011.”


 


		11	The Loan Agreement shall be amended by deleting the following definitions appearing in Section
13.1 thereof:



 


““Availability
Amount” is (a) the lesser of (i) the Revolving Line or (ii) the amount available under the Borrowing Base minus
(b) the Dollar Equivalent amount of all outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit plus
an amount equal to the Letter of Credit Reserve), minus (c) the FX Reduction Amount, minus (d) any amounts used for
Cash Management Services, and minus (e) the outstanding principal balance of any Advances.


 


“Credit Extension”
is any Advance, Letter of Credit, Term Loan, FX Forward Contract, amount utilized for Cash Management Services, or any other extension
of credit by Bank for Borrower’s benefit.


 


“Loan Documents”
are, collectively, this Agreement, the European Loan Agreement, each Guaranty, each Security Agreement, each Perfection Certificate,
each IP Agreement, the Stock Pledge Agreement, any note, or notes or guaranties executed by Borrower or any Guarantor, and any
other present or future agreement between Borrower, any Guarantor and/or for the benefit of Bank in connection with this Agreement,
all as amended, restated, or otherwise modified.


 


“Reserves”
means, as of any date of determination, such amounts as Bank may, after consultation with Borrower, from time to time establish
and revise in good faith reducing the amount of Advances, Letters of Credit and other financial accommodations which would otherwise
be available to Borrower under the lending formulas: (a) to reflect events, conditions, contingencies or risks which, as determined
by Bank in good faith, do or may have a material adverse affect on (i) the Collateral or any other property which is security for
the Obligations or its value (including without limitation any increase in delinquencies of Accounts), (ii) the assets or business
of Borrower or any guarantor, or (iii) the security interests and other rights of Bank in the Collateral (including the enforceability,
perfection and priority thereof); or (b) to reflect Bank’s good faith belief that any collateral report or financial information
furnished by or on behalf of Borrower or any guarantor to Bank is or may have been incomplete, inaccurate or misleading in any
material respect; or (c) in respect of any state of facts which Bank determines in good faith reasonable business judgment constitutes
an Event of Default or may, with notice or passage of time or both, constitute an Event of Default.”


 


and inserting in lieu thereof
the following:


 


““Availability
Amount” is (a) the lesser of (i) the Revolving Line or (ii) the amount available under the Borrowing Base minus
(b) the outstanding principal balance of any Advances.


 


“Credit Extension”
is any Advance, letter of credit, Term Loan, foreign exchange forward contract, amount utilized for cash management services, or
any other extension of credit by Bank for Borrower’s benefit.






    	6



    	 



    

 


Exhibit 10.9


 


“Loan Documents”
are, collectively, this Agreement, the European Loan Agreement, any Bank Services Agreement, each Guaranty, each Security Agreement,
each Perfection Certificate, each IP Agreement, the Stock Pledge Agreement, any note, or notes or guaranties executed by Borrower
or any Guarantor, and any other present or future agreement between Borrower, any Guarantor and/or for the benefit of Bank in connection
with this Agreement and/or Bank Services, all as amended, restated, or otherwise modified.


 


“Reserves”
means, as of any date of determination, such amounts as Bank may, after consultation with Borrower, from time to time establish
and revise in good faith reducing the amount of Advances, letters of credit and other financial accommodations which would otherwise
be available to Borrower under the lending formulas: (a) to reflect events, conditions, contingencies or risks which, as determined
by Bank in good faith, do or may have a material adverse affect on (i) the Collateral or any other property which is security for
the Obligations or its value (including without limitation any increase in delinquencies of Accounts), (ii) the assets or business
of Borrower or any guarantor, or (iii) the security interests and other rights of Bank in the Collateral (including the enforceability,
perfection and priority thereof); or (b) to reflect Bank’s good faith belief that any collateral report or financial information
furnished by or on behalf of Borrower or any guarantor to Bank is or may have been incomplete, inaccurate or misleading in any
material respect; or (c) in respect of any state of facts which Bank determines in good faith reasonable business judgment constitutes
an Event of Default or may, with notice or passage of time or both, constitute an Event of Default.”


 


		12	The Loan Agreement shall be amended by deleting the following definitions from Section 13.1 thereof:



 


““Cash Management
Services” is defined in Section 2.1.4.


 


“FX Forward Contract”
is defined in Section 2.1.3.


 


“FX Reserve”
is defined in Section 2.1.3.


 


“FX Reduction Amount”
is defined in Section 2.1.3.


 


“Letter of Credit”
means a standby letter of credit issued by Bank or another institution based upon an application, guarantee, indemnity or similar
agreement on the part of Bank as set forth in Section 2.1.2.


 


“Letter of Credit Application”
is defined in Section 2.1.2(b).


 


“Letter of Credit Reserve”
has the meaning set forth in Section 2.1.2(e).”


 


		13	The Compliance Certificate attached as Exhibit B to the Loan Agreement is hereby deleted
and shall be replaced with Exhibit A attached hereto.



 






    	7



    	 



    

 


Exhibit 10.9


 


 


4.CONDITIONS PRECEDENT.
As a condition precedent to the effectiveness of this Loan Modification Agreement and the Bank’s obligation to make further
Advances under the Revolving Line, the Bank shall have received the following documents prior to or concurrently with this Agreement,
each in form and substance satisfactory to the Bank:


 


		A.	Copies, certified by a duly authorized officer of each Borrower, to be true and complete as of
the date hereof, of each of (i) the governing documents of each Borrower, respectively, as in effect on the date hereof (but only
to the extent modified since last delivered to the Bank), (ii) the resolutions of each Borrower, respectively, authorizing the
execution and delivery of this Loan Modification Agreement, the other documents executed in connection herewith and each Borrower’s
respective performance of all of the transactions contemplated hereby (but only to the extent required since last delivered to
Bank), and (iii) an incumbency certificate giving the name and bearing a specimen signature of each individual who shall be so
authorized (but only to the extent any signatories have changed since such incumbency certificate was last delivered to Bank);




 


		B.	Updated evidence of insurance;



 


		C.	A fully executed copy of Acknowledgment, Amendment and Reaffirmation of Intercreditor and Subordination
Agreement with BIA; and



 


		D.	Such other documents as Bank may reasonably request.



 


5.FEES. Borrower
shall pay to Bank a Revolving Line modification fee equal to Two Thousand Five Hundred Dollars ($2,500) plus a Term Loan modification
fee equal to Two Thousand Five Hundred Dollars ($2,500), each of which fees shall be due on the date hereof and shall be deemed
fully earned as of the date hereof. Borrower shall also reimburse Bank for all legal fees and expenses incurred in connection with
this amendment to the Existing Loan Documents.


 


6.RATIFICATION
OF IP AGREEMENTS. Borrower hereby ratifies, confirms and reaffirms, all and singular, the terms and conditions of each IP Agreement,
and acknowledges, confirms and agrees that each respective IP Agreement contains an accurate and complete listing of all Intellectual
Property Collateral as defined in each such IP Agreement
as otherwise supplemented by the Loan Agreement and any Perfection Certificate related thereto, shall remain in full
force and effect. Notwithstanding the terms and conditions of each IP Agreement, the Borrower shall not register any Copyrights
or Mask Works in the United States Copyright Office unless it: (i) has given at least fifteen (15) days’ prior-written notice
to Bank of its intent to register such Copyrights or Mask Works and has provided Bank with a copy of the application it intends
to file with the United States Copyright Office (excluding exhibits thereto); (ii) executes a security agreement or such other
documents as Bank may reasonably request in order to maintain the perfection and priority of Bank’s security interest in
the Copyrights proposed to be registered with the United States Copyright Office; and (iii) records such security documents with
the United States Copyright Office contemporaneously with filing the Copyright application(s) with the United States Copyright
Office. Borrower shall promptly provide to Bank a copy of the Copyright application(s) filed with the United States Copyright Office,
together with evidence of the recording of the security documents necessary for Bank to maintain the perfection and priority of
its security interest in such Copyrights or Mask Works. Borrower shall provide written notice to Bank of any application filed
by Borrower in the United States Patent Trademark Office for a patent or to register a trademark or service mark within fifteen
(15) days of any such filing.


 


7.ADDITIONAL COVENANTS:
RATIFICATION OF PERFECTION CERTIFICATE. Borrower is not a party to, nor is bound by, any license or other agreement with respect
to which Borrower is the licensee (a) that prohibits or otherwise restricts Borrower from granting a security interest in Borrower’s
interest in such license or agreement or any other property, or (b) for which a default under or termination of could interfere
with the Bank’s right to sell any Collateral. Borrower shall provide written notice to Bank within ten (10) days of entering
or becoming bound by any such license or agreement (other than over-the-counter software that is commercially available to the
public). Borrower shall take such steps as Bank requests to obtain the consent of, or waiver by, any person whose consent or waiver
is necessary for (x) all such licenses or contract rights to be deemed “Collateral” and for Bank to have a security
interest in it that might otherwise be restricted or prohibited by law or by the terms of any such license or agreement (such consent
or authorization may include a licensor’s agreement to a contingent assignment of the license to Bank if Bank determines
that is necessary in its good faith judgment), whether now existing or entered into in the future,
and (y) Bank to have the ability in the event of a liquidation of any Collateral to dispose of such Collateral in accordance
with Bank’s rights and remedies under the Loan Agreement and the other Loan Documents. In addition, the Borrower hereby certifies
that no Collateral with a value greater than Twenty-Five Thousand Dollars ($25,000) in the aggregate is in the possession of any
third party bailee (such as at a warehouse). In the event that Borrower, after the date hereof, intends to store or otherwise deliver
the Collateral with a value in excess of Twenty-Five Thousand Dollars ($25,000), in the aggregate to such a bailee, then Borrower
shall first receive, the prior written consent of Bank and such bailee must acknowledge in writing that the bailee is holding such
Collateral for the benefit of Bank. Borrower hereby ratifies, confirms and reaffirms, all and singular, the terms and disclosures
contained in a certain Perfection Certificate, dated as of June 29, 2011, and acknowledges, confirms and agrees the disclosures
and information Borrower provided to Bank in the Perfection Certificate remain true and correct in all material respects as of
the date hereof.






    	8



    	 



    

 


Exhibit 10.9


 


8.CONSISTENT CHANGES.
The Existing Loan Documents are hereby amended wherever necessary to reflect the changes described above.


 


9.RATIFICATION
OF LOAN DOCUMENTS. Borrower hereby ratifies, confirms, and reaffirms all terms and conditions of all security or other collateral
granted to the Bank, and confirms that the indebtedness secured thereby includes, without limitation, the Obligations.


 


10.NO DEFENSES
OF BORROWER. Borrower hereby acknowledges and agrees that Borrower has no offsets, defenses, claims, or counterclaims against
Bank with respect to the Obligations, or otherwise, and that if Borrower now has, or ever did have, any offsets, defenses, claims,
or counterclaims against Bank, whether known or unknown, at law or in equity, all of them are hereby expressly WAIVED and Borrower
hereby RELEASES Bank from any liability thereunder.


 


11.CONTINUING
VALIDITY. Borrower understands and agrees that in modifying the existing Obligations, Bank is relying upon Borrower’s
representations, warranties, and agreements, as set forth in the Existing Loan Documents. Except as expressly modified pursuant
to this Loan Modification Agreement, the terms of the Existing Loan Documents remain unchanged and in full force and effect. Bank’s
agreement to waive the Existing Defaults pursuant to this Loan Modification Agreement in no way shall obligate Bank to make any
future waivers or any other modifications to the Obligations. Nothing in this Loan Modification Agreement shall constitute a satisfaction
of the Obligations. It is the intention of Bank and Borrower to retain as liable parties all makers of Existing Loan Documents,
unless the party is expressly released by Bank in writing. No maker will be released by virtue of this Loan Modification Agreement.


 


12.JURISDICTION/VENUE.
Section 11 of the Loan Agreement is hereby incorporated by reference.


 


13.COUNTERSIGNATURE.
This Loan Modification Agreement shall become effective only when it shall have been executed by Borrower and Bank.


 


[The remainder of this page is intentionally
left blank]






    	9



    	 



    

Exhibit 10.9


 


IN WITNESS WHEREOF,
the parties hereto have caused this Loan Modification Agreement to be executed as of the date first above written.


 


BORROWER:


 





	GLOBAL TELECOM & TECHNOLOGY, INC.	 	GLOBAL TELECOM & TECHNOLOGY AMERICAS, INC.
	 	 	 	 	 
	By	 	 	By	 
	Name: Eric A. Swank	 	Name: Eric A. Swank
	Title: CFO	 	Title: CFO
	 	 	 	 	 
	PACKETEXCHANGE, INC.	 	WBS CONNECT, LLC
	 	 	 	 
	 	 	 	 	 
	By	 	 	By	 
	Name: Eric A. Swank	 	Name: Eric A. Swank
	Title: Director	 	Title: CFO of Managing Member
	 	 	 	 	 
	PACKETEXCHANGE (USA), INC.	 	 	 
	 	 	 	 
	 	 	 	 	 
	By	 	 	 	 
	Name: Eric A. Swank	 	 	 
	Title: Director	 	 	 




  


BANK:


 


SILICON VALLEY BANK


 


	By	 	 
	Name:	 	 
	Title:	 	 


 


 




The undersigned, Eric Swank of GTT Global Telecom Government Services, LLC, a Virginia limited liability company
and wholly owned Subsidiary of GTTA, ratifies, confirms and reaffirms, all and singular, the terms and conditions of (i) a certain
Amended and Restated Unconditional Guaranty dated as of June 29, 2011 (the “Guaranty”) and (ii) a certain Amended and
Restated Security Agreement dated as of June 29, 2011 (the “Security Agreement”) and acknowledges, confirms and agrees
that the Guaranty and the Security Agreement shall remain in full force and effect and shall in no way be limited by the execution
of this Loan Modification Agreement, or any other documents, instruments and/or agreements executed and/or delivered in connection
herewith.


 


	 	By	 	 
	 	Name:	Eric A. Swank	 
	 	Title:	CFO of Sole Member	 


 






    	10



    	 



    

Exhibit 10.9



 


 


 


 


The undersigned, Eric Swank
of TEK Channel consulting, LLC, a Colorado limited liability company and wholly owned Subsidiary of GTTA, ratifies, confirms
and reaffirms, all and singular, the terms and conditions of (i) a certain Amended and Restated Unconditional Guaranty dated as
of June 29, 2011 (the “Guaranty”) and (ii) a certain Amended and Restated Security Agreement dated as of June 29, 2011
(the “Security Agreement”) and acknowledges, confirms and agrees that the Guaranty and the Security Agreement shall
remain in full force and effect and shall in no way be limited by the execution of this Loan Modification Agreement, or any other
documents, instruments and/or agreements executed and/or delivered in connection herewith.


 


	 	By	 	 
	 	Name:	Eric A. Swank	 
	 	Title:	CFO of Managing Member	 


 






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Exhibit 10.9



 



Exhibit B


 


	SILICON VALLEY BANK	Date:	 	 
	FROM:  GLOBAL TELECOM & TECHNOLOGY, INC. et al.	 	 	 


 


The undersigned authorized officer of Global
Telecom and Technology, Inc. ( a “Borrower”) certifies that under the terms and conditions of the Loan and Security
Agreement between Borrower and Bank (as amended, the “Agreement”), (1) Borrower is in complete compliance for
the period ending _______________ with all required covenants except as noted below, (2) there are no Events of Default, (3) all
representations and warranties in the Agreement are true and correct in all material respects on this date except as noted below;
provided, however, that such materiality qualifier shall not be applicable to any representations and warranties
that already are qualified or modified by materiality in the text thereof; and provided, further that
those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material
respects as of such date, (4) each Borrower, and each of its respective Subsidiaries, has timely filed all required tax
returns and reports, and Borrower has timely paid all foreign, federal, state, national and local taxes,
assessments, deposits and contributions owed by Borrower except as otherwise permitted pursuant to the terms of Section
5.9 of the Agreement, and (5) no Liens have been levied or claims made against any Borrower or any of its respective Subsidiaries,
if any, relating to unpaid employee payroll or benefits of which any Borrower has not previously provided written notification
to Bank. Attached are the required documents supporting the certification. The undersigned certifies that these are prepared in
accordance with GAAP consistently applied from one period to the next except as explained in an accompanying letter or footnotes.
The undersigned acknowledges that no borrowings may be requested at any time or date of determination that Borrower is not in compliance
with any of the terms of the Agreement, and that compliance is determined not just at the date this certificate is delivered. Capitalized
terms used but not otherwise defined herein shall have the meanings given them in the Agreement.


	Please indicate compliance status by circling Yes/No under “Complies” column.
	 
	Reporting Covenant	Required	Complies
	 	 	 
	Monthly consolidated unaudited financial statements 

of (w)  GTTI and its direct and indirect Subsidiaries; 

(x) monthly consolidated unaudited financial statements of GTTI and its direct and indirect Domestic Subsidiaries; 

(y) monthly consolidated unaudited financial statements of EMEA and its direct and indirect Subsidiaries; and 

(z) monthly consolidating unaudited financial statements 

for GTTI and its direct and indirect Subsidiaries with a Compliance Certificate	Monthly within 30 days	Yes   No
	Annual financial statement (CPA Audited) + CC	FYE within150 days	Yes   No
	10-Q, 10-K and 8-K	Within 5 days after filing with SEC	Yes   No
	A/R & A/P Agings, Deferred Revenue report	
        Monthly within 20 days (current as
        of 

        the 15th day of the immediately

        preceding month)
	Yes   No
	Transaction Reports	
        Monthly within 20 days (current as
        of 

        the 15th day of the immediately

        preceding month)and with each
        request

        for a Credit Extension
	Yes   No
	Projections	FYE within 45 days and as amended or updated	Yes   No
	 
	
         

        The following Intellectual Property was registered
and/or the following Governmental Approvals were obtained after the delivery of the last Compliance Certificate (if no registrations
or approvals, state “None”)

         




 






    	12



    	 



    

 


Exhibit 10.9


 


 


	Financial Covenant	Required	Actual	Complies
	 	 	 	 
	Maintain as indicated:	 	 	 
	Minimum Liquidity (certified monthly)	*	$_______	Yes   No
	Minimum Fixed Charge Coverage Ratio (tested quarterly, on 

a T3M basis	1.50:1.00	_____:1.0	Yes   No
	Leverage Ratio	**	_____:1.0	Yes   No


 


	 	*	See Section 6.9(a) of the Loan Agreement
	 	**	See Section 6.9(c) of the Loan Agreement


 


	Performance Pricing	Applies
	 	 	 
	Senior Leverage Ratio < 2.00:1.00	Prime + 2.75%	Yes   No
	Senior Leverage Ratio > 2.00:1.00	Prime + 3.75%	Yes   No


 


The following
financial covenant analyses and information set forth in Schedule 1 attached hereto are true and accurate as of the date of this
Certificate.


 


The following are the exceptions with
respect to the certification above: (If no exceptions exist, state “No exceptions to note.”)


 














  


	GLOBAL TELECOM & TECHNOLOGY, INC. et al.	 	BANK USE ONLY	 
	 	 	 	 
	 	 	 	Received by:	 	 
	 	 	 	 	authorized signer	 
	By: 	 	 	 	 	 
	Name:	 	 	Date:	 	 
	Title:	 	 	 	 	 
	 	 	 	Verified:	 	 
	 	 	 	 	authorized signer	 
	 	 	 	Date:	 	 



 


	 	 	 	Compliance Status:	Yes     No	 


 






    	13



    	 



    

 

Exhibit 10.9



 


 


Schedule 1 to Compliance Certificate


 


Financial Covenants of Borrower


 


In the event of a conflict between this
Schedule and the Loan Agreement, the terms of the Loan Agreement shall govern.


 


Dated:____________________


 


I.      Liquidity (Section 6.9(a))


 


Required:GTTI and its direct and indirect
Domestic Subsidiaries shall at all times maintain unrestricted domestic cash at Bank plus the unused availability under
the Borrowing Base (the “Minimum Liquidity”) of at least the amounts indicated below for the periods indicated
below:


 


	Period	Minimum Liquidity
	 	 
	Effective Date through and including July 31, 2011	$3,000,000
	 	 
	August 1, 2011 through and including September 30, 2011	$3,500,000
	 	 
	October 1, 2011 through and including February 29, 2012	$3,250,000
	 	 
	March 1, 2012 through and including August 31, 2012	$4,000,000
	 	 
	September 1, 2012 through and including November 30, 2012	$4,500,000
	 	 
	December 1, 2012 through and including February 28, 2013 	$5,000,000
	 	 
	March 1, 2013 and at all times thereafter	$5,500,000


 


 


Actual:


 


	A.	Aggregate value of the unrestricted cash at Bank of GTTI and its direct and indirect Domestic	
        $
	 
	 	Subsidiaries	 	 
	B.	Aggregate value of the unused availability under the Borrowing Base	
        $
	 
	 	 	 	 
	C.	
        LIQUIDITY (line A plus line B)
	
        $
	 


 


Is line C equal to or greater than $[                                                       ]?


 


	 	 	 	No, not in compliance	 	 	Yes, in compliance


 






    	14



    	 



    

 

Exhibit 10.9



 


 


II.          Fixed Charge Coverage Ratio. (Section 6.9(b))


 


Required:On
a quarterly basis, as of the last day of each fiscal quarter of the Borrower, measured on a trailing three month basis, GTTI and
its Domestic Subsidiaries shall maintain a ratio of (i) Cash Basis EBITDA for such period divided by (ii) Fixed Charges
of at least 1.50:1.00.


 


 


Actual: All amounts measured on a trailing three month basis:


 


	A.	EBITDA	
        $
	 
	 	 	 	 
	B.	Unfinanced Capital Expenditures	
        $
	 
	 	 	 	 
	
        C.
	
        Non-recurring cash expenses related to the PEX Acquisition
approved by Bank, in its reasonable discretion, on a case-by-case basis
	$	 
	 	 	 	 
	
        D.
	
        CASH BASIS EBITDA (line A minus line B plus
line C)
	$	 
	 	 	 	 
	
        E.
	Fixed Charges	$	 
	 	 	 	 
	F.	FIXED CHARGE COVERAGE RATIO (line D divided by line E, expressed as a ratio)	__________:1.00 





 


Is line F equal to or greater than 1.50:1:00?


 





	 	 	 	No, not in compliance	 	 	Yes, in compliance


 


 



    	1



    	 



    

 

Exhibit 10.9



 


 


1.          III.          Leverage
Ratio. (Section 6.9(c))


 


Required:On a quarterly basis, as of
the last day of each of the following fiscal quarters of Borrower, GTTI and its direct and indirect Subsidiaries shall maintain
a ratio (the “Leverage Ratio”) of (i) total Indebtedness of Borrower and its respective Subsidiaries (excluding
the PEX Earn-out) divided by (ii) trailing four (4) quarters Free Cash Flow, not to exceed the following:


 


	 Quarterly Period Ending	Maximum Leverage Ratio
	 	 
	June 30, 2011	4.75:1.00
	 	 
	September 30, 2011	4.25:1.00
	 	 
	December 31, 2011	3.50:1.00
	 	 
	March 31, 2012	3.00:1.00
	 	 
	June 30, 2012	2.75:1.00
	 	 
	September 30, 2012, and as of the last day of each quarterly period ending thereafter	2.50:1.00


Actual:


 


 


	
        A.
	Total Indebtedness of Borrower and its respective Subsidiaries (excluding the PEX Earn-out)	$	 
	 	 	 	 
	
        B.
	CASH BASIS EBITDA (from line II.D above)	$	 
	 	 	 	 
	
        C.
	Taxed actually paid in cash	$	 
	 	 	 	 
	D.	
        FREE CASH FLOW (line B minus line C) 
	$	 
	 	 	 	 
	E.	MAXIMUM LEVERAGE RATIO (line A divided by line D)	 


 ________:1.00


 


 


Is line E equal to or greater than 1:00?


 





	 	 	 	No, not in compliance	 	 	Yes, in compliance


  


 


2.


 






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