Document:

exv10w4

 

FORM
OF
PROMISSORY NOTE

			
	 	 	 
	$          
	 	McLean, Virginia
	 
	 	October 15, 2006

     FOR VALUE RECEIVED, MERCATOR PARTNERS ACQUISITION CORP., a Delaware corporation (the “Maker”),
promises to pay to the order of           , a resident of the Commonwealth of Virginia (the
“Payee”) or his successor or assigns the principal sum of            Dollars ($          ), together with interest on the unpaid principal balance at the rate
and on the terms hereinafter provided in this promissory note (including all modifications,
amendments, substitutions, renewals or extensions hereof and allonges hereto, this “Note”).

     Payments due hereunder shall be paid in lawful money of the United States of America (or by
wire transfer or by certified check payable in such money) at Payee’s address (as given below) or
at such other place as Payee or any other holder of this Note may from time to time have designated
by prior written notice to the Maker.

     This Note is being executed and delivered in accordance with the terms of that certain Stock
Purchase Agreement, by and among the Maker, Global Internetworking, Inc., Payee, D. Michael Keenan
and Raymond E. Wiseman, dated May 23, 2006 (the “Agreement”), and is subject to the provisions
thereof.

     This Note is one of a duly authorized series of Notes (the “Notes”) in the aggregate principal
amount of Four Million Dollars ($4,000,000). For purposes of this Note, reference to Majority
Holders shall mean the holders of more than fifty percent (50%) of the outstanding principal
balances due under all of the Notes.

     1. Interest Rate. Interest shall accrue daily on the unpaid principal balance of
this Note from and after the date hereof at a rate equal to six percent (6%) per annum, compounded
annually. Interest due hereunder shall be computed on the basis of a 360-day year composed of
twelve 30-day months. Interest shall be paid for the actual number of days elapsed based on a
360-day year.

     2. Subordination. The indebtedness evidenced by this Note is hereby expressly
subordinate, to the extent and in the manner hereinafter set forth, in right of payment to the
prior payment in full of all of the Maker’s “Senior Indebtedness”. Senior Indebtedness shall mean
the principal of and unpaid interest and premium, if any, on (i) indebtedness of the Maker or with
respect to which the Maker is a guarantor, whether outstanding on the date hereof or hereafter
created, to banks, insurance companies or other lending or thrift institutions regularly engaged
in the business of lending money, whether or not secured, (ii) indebtedness of the Maker or with
respect to which the Maker is a guarantor, whether outstanding on the date

 

 

hereof or hereafter created, to equipment leasing companies relating to capital assets used
in the day-to-day operations of the Maker, it subsidiaries or affiliates, and (iii) any deferrals,
renewals or extensions of any debentures, notes or other indebtedness issued in exchange for such
Senior Indebtedness. Payee agrees to execute a standard form subordination agreement to confirm
such subordination in which Payee shall agree to forego receiving payments hereunder if a default
exists under any outstanding Senior Indebtedness.

     3. Payment. Fifty percent (50%) of the accrued interest on the unpaid principal
balance shall be due and payable on December 31, 2006. Fifty percent (50%) of the accrued
interest on the unpaid principal balance from the period commencing January 1, 2007 and ending on
December 31, 2007 shall be due and payable on December 31, 2007. If not sooner paid, the entire
principal balance, all accrued and unpaid interest, if any, and all other sums provided herein
shall be due and payable on December 29, 2008. Notwithstanding the terms of this Section 3, all
principal and interest will be due and payable no later than five (5) business days following (i)
a Change of Control (as defined in Section 1.9 of the Agreement), (ii) the exercise, by the
holders thereof, of no less than fifty percent (50%) of (a) the Class W Warrants (as defined in
Section 1.2(d) of the Agreement) issued and outstanding as of the date of this Note and (b) the
Class Z Warrants (as defined in Section 1.2(e) of the Agreement) issued and outstanding as of the
date of this Note, or (iii) the issuance by the Maker of debt or equity securities (in a single
transaction or series of substantially related transactions) resulting in a capital raise by the
Maker of Twenty Million Dollars ($20,000,000.00) or more.

     4. Prepayment. This Note may be prepaid in whole or in part at any time and from
time to time without premium or penalty; provided, however, any such prepayment shall be
proportionately applied against all the Notes such that the prepayment against this Note shall
bear the same ratio to the prepayments against all Notes as the principal and interest then due
under this Note bears to the principal and interest then due under all the Notes. Any prepayment
shall be applied against the principal sum then outstanding and if this Note is prepaid in whole,
shall include all interest due to the date of such prepayment. No partial prepayment shall affect
the obligation of the Maker to make any payment of principal or interest due hereunder on the date
hereinabove specified until this Note has been paid in full.

     5. Application of Payments. Payments on this Note shall be applied first to late
charges and fees, then to outstanding interest, then to other sums due hereunder, then to
principal.

     6. Events of Default. It is expressly agreed that the occurrence of any one or more
of the following shall constitute an “Event of Default” hereunder:

          (a) failure of the Maker to make any payment required by the terms hereof when the same shall
become due and payable and such default shall have continued for a period of ten (10) days after
Maker has received written notice from Payee that such default has occurred;

          (b) any other default, which is not waived, under any other debt instrument or security or
financing agreement to which Maker is a party;

Page 2 of 5 pages

 

          (c) failure by the Maker to perform any term, covenant or agreement contained herein; or

          (d) if the Maker, any of its affiliates or subsidiaries, shall make an assignment for the
benefit of creditors, or admit in writing its inability to pay or generally fail to pay its debts
as they mature or become due, or shall petition or apply for the appointment of a trustee or other
custodian, liquidator or receiver of the Maker, or such affiliate of subsidiary, or shall commence
any case or other proceeding relating to the Maker, or such affiliate of subsidiary, under any
bankruptcy, reorganization, arrangement, insolvency, readjustment of debt, dissolution or
liquidation or similar law of any jurisdiction, now or hereafter in effect, or shall take any
action to authorize or in furtherance of any of the foregoing, or if any such petition or
application shall be filed or any such case or other proceeding shall be commenced against the
Maker, or such affiliate of subsidiary, and such petition or application shall not have been
dismissed within sixty (60) days following the filing thereof.

     7. Expenses of Collection, etc. The Maker agrees to pay all expenses, including
court costs and actual and reasonable attorneys’ fees, incurred in collecting this Note, in
preserving or disposing of any collateral given as security for the payment of this Note or in
defending or prosecuting any action relating to this Note.

     8. Acceleration Upon Default; Default Rate. If an Event of Default has occurred and
is continuing under any instrument by which this Note is, or may hereafter be, secured, the entire
principal balance, interest then accrued, and all other sums due hereunder, whether or not
otherwise then due, shall, at the option of the Majority Holders, become immediately due and
payable without demand or notice. Upon any Event of Default hereunder, and during the
continuation thereof, the interest rate hereunder will increase to nine percent (9%) per annum.

     9. Notices. Any notices required or permitted hereunder may be given by certified or
registered mail, postage prepaid, return receipt requested or upon delivery if delivered by hand,
by messenger or by a nationally recognized, overnight commercial express service if sent to the
parties’ respective addresses as indicated below, or to such other address as may be prescribed by
written notice given pursuant to this Paragraph. Notices shall be deemed given hereunder upon
personal delivery or three (3) business days after the date mailed:

	 	 	 
	if to Maker:

	 	Mercator Partners Acquisition Corp.
	 

	 	8484 Westpark Drive
	 

	 	Suite 720
	 

	 	McLean, VA 22102
	 

	 	Attn: President and General Counsel
	 
	 	 
	if to Payee:

	 	 
	 

	 	 
	 

	 	 

Page 3 of 5 pages

 

     10. Severability. If any provision of this Note shall be held to be illegal, void,
invalid or unenforceable under the laws of any jurisdiction, the legality, validity and
enforceability of the remainder of this Note and that jurisdiction shall not be affected, and the
legality, validity and enforceability of the whole of this Note in any other jurisdiction shall
not be affected.

     11. Applicable Law; Consent to Venue and Jurisdiction. This Note shall be governed
by the laws of the Commonwealth of Virginia, without giving effect to its choice of law rules.
Maker and Payee consent to the jurisdiction and venue of the courts of the Commonwealth of
Virginia in any action or judicial proceeding brought to enforce, construe or interpret this Note.

     12. Successors and Assigns. The terms and conditions of this Note shall be binding
upon Maker and its successors and permitted assigns, and shall inure to the benefit of the Payee
and its successors and assigns, and any subsequent holder of this Note.

     13. Amendments; Waiver. Any provision of this Note may be amended or waived if, but
only if, such amendment or waiver is in writing and is signed, in the case of an amendment, by
each party to this Note, or in the case of a waiver, by the party against whom the waiver is to be
effective. No failure or delay by Payee in exercising any right, power or privilege hereunder
shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any
other or further exercise thereof or the exercise of any other right, power or privilege. The
rights and remedies herein provided shall be cumulative and not exclusive of any rights or
remedies provided by law.

     14. Assignment. Except as otherwise provided herein, any attempt by Maker to assign
its rights or delegate its duties under this Note without the prior written consent of Payee will
be void.

     15. Captions; Certain Terms. The captions herein are included for convenience of
reference only and shall be ignored in the construction or interpretation hereof. Whenever the
words “include,” “includes,” or “including” are used in this Agreement, they shall be deemed to be
followed by the words “without limitation.”

[Remainder of page intentionally left blank; next page is signature page]

Page 4 of 5 pages

 

     IN WITNESS WHEREOF, the Maker has executed this Note as of the date first above written.

	 	 	 	 	 
	 	MERCATOR PARTNERS ACQUISITION CORP.

 	 
	 	By:  	 	 
	 	 	Rhodric C. Hackman, President 	 
	 	 	 	 
	 

Page 5 of 5 pages

 

SCHEDULE OF MATERIAL DIFFERENCES TO EXHIBIT 10.4

	 	 	 	 	 
	Payee	 	Principal Sum	 
	D. Michael Keenan
	 	$	1,800,000	 
	 
	 	 	 	 
	Todd Vecchio
	 	$	1,800,000exv10w5

 

FORM
OF
PROMISSORY NOTE

			
	Amount:
           

Date: October 15, 2006
	 	Maturity Date: June 30, 2007

     This Promissory Note (the “Note”) is being executed by Mercator Partners Acquisition Corp., a
Delaware corporation (the “Company”), in favor of and is
being delivered to D.            
(“Payee”) in connection with Payee’s agreement to defer part of the cash payment due to the Payee
from the Company from the Company’s purchase of the shares that
the Payee held in [Global Internetworking, Inc. (“GII”)]
[European Telecommunication & Technology Limited]. This Note is one of a series of notes (collectively, the “Notes”)
amounting to an aggregate principal amount of $5,916,667.00 that the Company has delivered on this
date to other holders of shares of
[European Telecommunications & Technology, Inc. (“ETT”)]
[Global Internetworking, Inc.] and
GII who have similarly agreed to defer part of the current payment of cash against the Company’s
purchase of their shares of GII or ETT.

     As used herein, the term “Holder” means the Payee and any other holder from time to time of
this Note, together with their respective successors, heirs and assigns.

     FOR VALUE RECEIVED, the Company promises to pay to the order of Holder at the offices of the
Company, or at such other place as may be designated by Holder, the principal amount of             Dollars ($           ) together with interest on the unpaid principal balance as
hereinafter provided.

     1. Payment Schedule and Maturity Date. The entire principal balance of this Note then unpaid,
together with all accrued and unpaid interest and all other amounts payable under this Note, shall
be due and payable in full on June 30, 2007 (the “Maturity Date”).

     (a) Fixed Rate. Interest on the outstanding principal balance of, and all other sums owing
under this Note, which are not past due, shall accrue and be payable at a rate which is equal to
six percent (6.00%) per annum (the “Note Rate”). Interest shall be computed for the actual number
of days which have elapsed, on the basis of a 365-day year.

     (b) Past Due Rate. If any amount payable by the Company under this Note is not paid when due,
such amount shall thereafter bear interest at the Note Rate plus two percent (2%) per annum (the
“Past Due Rate”) to the fullest extent permitted by applicable law. The Past Due Rate shall apply
to all sums not paid when due and payable under this Note until paid in full.

     2. Prepayments. The Company may prepay this Note in full or in part, at any time without notice or
penalty. In no event will any prepayment be made against this Note unless prepayments are then
made against all the Notes with the amount being prepaid against this Note bearing the same ratio
to the total amounts being prepaid against all the Notes as the ratio of the

 

 

amount then due under this Note bears to the total amounts then due under all the Notes.

3. Waivers, Consents and Covenants.

     (a) Waivers; Time of Essence. The Company waives, to the extent permitted by applicable law,
presentment, demand, protest, notice of demand, notice of intent to accelerate, notice of
acceleration of maturity, notice of protest, notice of nonpayment, and notice of dishonor in
connection with the delivery, acceptance, performance, default or enforcement of this Note. TIME
IS OF THE ESSENCE IN THIS NOTE.

     (b) Covenants. Until such time as this Note shall have been paid in full, (i) promptly upon
the occurrence thereof (but in all events within three business days thereof), the Company shall
provide Holder with written notice of any Event of Default (as defined in Section 4 below), or any
act, event, condition or occurrence that upon the giving of any required notice or the lapse of
time, or both, would constitute an Event of Default, and (ii) the Company shall (X) apply the
proceeds of any new issue of securities towards the repayment of this Notes (pro rata to their
principal amounts before making any other use thereof (other than payment of costs of the issue)
and (Y) not (A) declare or pay any dividends or make any distributions, whether of an income or
capital nature of cash or assets, (B) purchase, redeem or otherwise retire any shares of the
Company’s capital stock, (C) loan or advance any funds to any stockholder of the Company other than
customary advancement of expenses to employees of the Company in the ordinary course of business,
(D) create or permit to subsist any mortgage charge, pledge, lien or encumbrance whatsoever over
all or any part of its assets or agree to do so, (E) sell, transfer or otherwise dispose of the
whole or any part of its assets or agree to do so, or (F) borrow any monies from or grant any
security to any person unless the repayment of those borrowings and/or the security is subordinate
to the terms of these Notes.

     4. Events of Default. The occurrence of one or more of the following events shall be “Events of
Default” under this Note, and the term “Event of Default” shall mean, whenever they are used in
this Note, any one or more of the following events:

          (a) Failure to Pay. The Company shall fail to make any payment under this Note within five
(5) business days after such payment becomes due under this Note.

          (b) Breach of Covenant. The Company breaches any of the covenants set out in Section 3(b)
above or the warranties set out in Section 6.

          (c) Receiver; Bankruptcy. The Company shall (i) apply for or consent to the appointment of a
receiver, administrator, trustee or liquidator of itself or any of its property, (ii) admit in
writing its inability to pay its debts as they mature, (iii) make a general assignment for the
benefit of creditors, (iv) be adjudicated a bankrupt or be insolvent, (v) file a voluntary petition
in bankruptcy or a petition or an answer seeking reorganization or an arrangement with creditors or
to take advantage of any bankruptcy, reorganization, insolvency, readjustment of debt, dissolution
or liquidation law or statute, or an answer admitting the material allegations of a petition filed
against it in any proceeding under any such law or if corporate action shall be taken by the
Company for the purposes of effecting any of the foregoing, or (vi) by any act indicate its consent
to, approval of or acquiescence in any such proceeding or the appointment of any

2

 

receiver of or trustee for any of its property, or suffer any such receivership, trusteeship
or proceeding to continue undischarged for a period of sixty (60) days.

5. Remedies Upon Default. Upon the occurrence of an Event of Default under this Note, (i) at the
option of Holder, the entire balance outstanding under this Note shall become immediately due and
payable and (ii) Holder shall have all rights and remedies available at law or in equity.

6. Warranties. As at the date of these Notes, the Company warrants and undertakes to the Holders
that, save as set out in the Proxy Statement of the Company dated September 29, 2006, neither it
nor GII and ETT have any debt or loan facilities outstanding to any persons nor are the assets of
the Company, GII and ETT mortgaged or charged to any person.

7. Remedies Cumulative. The failure at any time of Holder to exercise any of the Holder’s options
or any other rights hereunder shall not constitute a waiver thereof, nor shall it be a bar to the
exercise of any of Holder’s options or rights at a later date. All rights and remedies of Holder
shall be cumulative and may be pursued singly, successively or together, at the option of Holder.
The acceptance by Holder of any partial payment shall not constitute a waiver of any default or of
any of Holder’s rights under this Note. Any term or provision of this Note may be amended, waived
or modified with the written consent of the Company and Holder; and any such waiver shall apply
only with respect to the specific instance involved, and shall in no way impair the rights of
Holder or the obligations of the Company to Holder in any other respect at any other time.

8. Costs and Expenses of Enforcement. Upon the occurrence of an Event of Default, the Company
shall pay on demand all costs of collection and reasonable attorneys fees incurred or paid by
Holder in enforcing the terms hereof or with respect to collection hereunder whether or not a suit
has been filed.

9.
Applicable Law. This Note shall be construed and enforced in
accordance with, and the
rights and obligations of the Company and Holder shall be governed by, the laws of Virginia and
the parties submit to the non-exclusive jurisdiction of the Virginia courts.

10. Partial Invalidity. The unenforceability or invalidity of any provision of this Note shall not
affect the enforceability or validity of any other provision herein and the invalidity or
unenforceability of any provision of this Note to any person or circumstance shall not affect the
enforceability or validity of such provision as it may apply to other persons or circumstances.

11. Binding Effect. This Note shall be binding upon and inure to the benefit of the Company and
Holder and their respective successors and permitted assigns.

12. Manner and Method of Payment. All payments called for in this Note shall be made in lawful
money of the United States of America by wire transfer to the account(s) designated by Holder,
which account(s) may be changed by Holder from time to time upon notice to the Company pursuant to
Section 14 hereof. Should any payment date fall on a non-banking day, the Company shall make the
payment on the next succeeding banking day (provided that interest shall continue to accrue at the
applicable rate hereunder through the actual date of payment).

3

 

13. Notices. All notices and other communications given or made pursuant hereto shall be in
writing and shall be deemed to have been duly given or made (i) upon receipt or refusal of
delivery, if delivered personally, mailed by registered or certified mail (postage prepaid, return
receipt requested), or delivered by courier service or overnight mail to the parties at the
following addresses (or at such other address for a party as shall be communicated by such party
pursuant hereto) or (ii) upon receipt if sent by electronic transmission to the telecopier number
specified below (or at such other telecopier number for a party as shall be communicated by such
party pursuant hereto) provided that a copy of such notice or other communication is delivered
personally or by courier service within two (2) business days following such electronic
transmission:

	 	 	 
	If to the Company:

	 	Mercator Partners Acquisition Corp.
	 
	 	 
	 

	 	               One Fountain Square
	 

	 	               Suite 590
	 

	 	               Reston, VA 20190
	 

	 	               Facsimile:
(703) 995-5535
	 

	 	               Attention: Rhodric Hackman.
	 
	 	 
	If to Holder:

	 	At the address set forth in the Company’s records for the Holder

14. Service. The Company appoints Rhodric Hackman, or such other person as the Company may
hereafter designate in writing to the Holder as its process agent to receive on its behalf service
of process and any other documents in any proceedings in
[the Commonwealth of Virginia] [England] and any writ,
judgment or other notice of legal process which shall be sufficiently served on the Company if
delivered to such process agent at his/its address for the time being. The Company undertakes not
to revoke the authority of such process agent. If for any reason such process agent (or any
subsequent replacement process agent) ceases to exist, ceases to be able to act in that capacity,
no longer has an address in [England] [Virginia] or service of process on such process agent ceases to be
effective, the Company undertakes to appoint a replacement process agent and to notify the Holders
forthwith of such appointment. In default of such appointment by the Company, the Holders shall be
entitled to appoint such a process agent on behalf of, and at the expense of, the Company.

15. No Transfer. This Note may not be transferred by Holder without the Company’s prior written
consent, except that if the Holder is an individual the Note may, (i) be transferred, in whole or
in part to members of Holder’s immediate family or any trusts for Holder’s or their benefit and
(ii) upon Holder’s death, be transferred to Holder’s successors, heirs, personal representative or
trustees for the benefit of Holder’s immediate family and except further that if the Holder is a
company the Note may be transferred in whole or in part to members of the group of companies of
which the Holder is part and if the Holder is a fund the Note may be transferred in whole or in
part to any fund which is managed or advised by the manager or adviser to such fund.

4

 

16. Seal and Effective Date. This Note is an instrument executed under seal and is to be
considered effective and enforceable as of the date set forth on the first page hereof, independent
of the date of actual execution and delivery.

[Signature Page Follows]

5

 

	 	 	 	 	 	 	 
	ATTEST:	 	COMPANY:
	 
	 	 	 	 	 	 
	 	 	Mercator Partners Acquisition Corp.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Rhodric C. Hackman
	 	(SEAL)
	 

	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	ACKNOWLEDGED AND AGREED:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

 
	 	 	 	 	 	 

6

 

SCHEDULE OF MATERIAL DIFFERENCES TO EXHIBIT 10.5

	 	 	 	 	 
	Payee	 	Principal Sum	 
	D. Michael Keenan
	 	$	250,000	 
	 
	 	 	 	 
	Todd Vecchio
	 	$	800,000

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