Document:

Certificate of Designations

 Exhibit 4.2 
  
 EXECUTION COPY 
  
 CERTIFICATE OF DESIGNATIONS 
  
 OF 
  
 2.0% CUMULATIVE SENIOR CONVERTIBLE PREFERRED SHARES 
  
 The terms of the authorized 2.0% Cumulative Senior Convertible Preferred Shares, par value $0.10 per share (the “Senior Preferred
Shares”) of Global Crossing Limited (formerly GC Acquisition Ltd.), a company incorporated under the laws of Bermuda (the “Company”), shall be as set forth below in this Schedule to the Bye-laws of the Company (this
“Schedule”). 
  
 The Senior Preferred Shares have
been purchased pursuant to a Purchase Agreement dated as of August 9, 2002 among Global Crossing Ltd., Global Crossing Holdings Ltd., Singapore Technologies Telemedia Pte Ltd. (“STT”) and others, as amended. 
  
 Certain terms are defined in Section 12 of this Schedule. Unless otherwise
provided herein, all Section references in this Schedule refer to Sections of this Schedule. Capitalized terms used but not otherwise defined in this Schedule have the meanings set forth in the Bye-laws of the Company. 
  
 1. Designations. There are hereby authorized 45,000,000 Senior
Preferred Shares as designated by the Board. Each Senior Preferred Share will have a liquidation preference of $10.00 (the “Liquidation Preference”). 
  
 2. Currency. All Senior Preferred Shares shall be denominated in United States currency, and all payments and
distributions thereon or with respect thereto shall be made in United States currency. All references herein to “$” or “dollars” refer to United States currency. 
  
 3. Ranking. 
  
 3.1. Subject to Section 4.7 and Section 5.3, the Senior Preferred Shares shall, with respect to dividend rights and rights upon liquidation or winding up,
rank senior to all other classes or series of shares in the share capital of the Company, including, without limitation, the Common Shares and other Equity Securities. All Equity Securities to which the Senior Preferred Shares ranks prior (whether
with respect to dividends or upon liquidation, winding up or otherwise), including the Common Shares, are collectively referred to herein as the “Junior Shares.” The definition of Junior Shares shall also include any warrants,
rights, calls or options exercisable for or convertible into any Junior Shares. 
  
 3.2. The Company shall not issue any Equity Securities which rank senior to, or pari passu with, the Senior Preferred Shares with respect to any rights; provided, however, nothing in this Section 3.2
shall prohibit the Company from issuing any Common Shares or other Equity Securities that are entitled to vote, in person or by proxy, at a special or annual meeting of shareholders or in any written consent in lieu of meeting, on all matters
entitled to be voted on by holders of Common Shares voting together as a single class with the Common Shares (and with other shares entitled to vote thereon, if any). 

 4. Dividends. 
  
 4.1. The holders of Senior Preferred Shares shall only be entitled to receive payment of dividends on the Senior Preferred
Shares, to the extent provided in this Section 4, after the Company and its Subsidiaries have, on a consolidated basis (excluding Global Marine and its subsidiaries) and according to the audited consolidated accounts of the Company (prepared in
accordance with U.S. Generally Accepted Accounting Principals consistently applied), achieved cumulative operating earnings before interest, taxes, depreciation and amortization (but excluding the contribution of (i) any revenue recognized
immediately for circuit activations that qualified as sales-type leases, (ii) revenue recognized due to the amortisation of indefeasible rights of use sold in prior periods and not recognized as sales-type leases, and (iii) revenue recognized from
extra-ordinary transactions or from the disposition of assets of the Company or any Subsidiary other than in the ordinary course of business) of $650,000,000 or more. 
  
 4.2. The holders of Senior Preferred Shares shall be entitled to receive, when, as and if declared by the Board out of funds
legally available therefor, dividends on the Senior Preferred Shares, cumulative from their date of issue, at a rate per annum of 2.0% of the Liquidation Preference per share, payable in cash. Subject to Section 4.1, dividends on the Senior
Preferred Shares shall be payable with respect to each quarterly period ending on the last day of March, June, September and December (each such period, a “Dividend Period”) and in equal amounts (subject to Section 4.6 hereunder
with respect to shorter periods, including the first such period with respect to which dividends are payable) in arrears on the fifteenth day of each April, July, October and January of each year, or if any such date is not a Business Day, on the
next succeeding Business Day (each such date, a “Dividend Payment Date”) in preference to and in priority over dividends on any Junior Shares, other than distributions to shareholders provided for under Section 5.3, which shall be
made pro rata to Shareholders as provided herein. Such dividends shall be paid to the holders of record of the Senior Preferred Shares as they appear on the applicable Record Date. As used herein, the term “Record Date”, with
respect to the dividends payable on the fifteenth of April, July, October and January, means the last day of the immediately preceding February, May, August and November, respectively, or such other record date, not more than 60 days and not less
than 10 days preceding the applicable Dividend Payment Date, as shall be fixed by the Board. Dividends on the Senior Preferred Shares shall be fully cumulative and shall accrue (whether or not declared and whether or not there are funds of the
Company legally available for the payment of dividends) from their date of issue (or the last Record Date for which dividends were paid, as the case may be). Accrued and unpaid dividends for any past Dividend Period may be declared and paid at any
time, without reference to any Dividend Payment Date, to holders of record on such date, not more than 45 days prior to the payment thereof, as may be fixed by the Board. Notwithstanding anything to the contrary in the foregoing, any distributions
made to the holders of Senior Preferred Shares under Section 5.3 shall offset, dollar for dollar, any dividends due to the holders of the Senior Preferred Shares under this Section 4.2. 
  
 4.3. Subject to Section 5.3, no dividend shall be declared or paid or set apart for payment, or other distribution declared
or made, whether in cash, obligations or shares of the Company or other property, directly or indirectly, upon any Junior Shares, nor shall any Junior Shares be redeemed, repurchased or otherwise acquired for consideration by the Company through a
sinking fund or otherwise, other than Common Shares redeemed or repurchased pursuant to the terms of the Share Option Plan, unless all accrued and unpaid 
  

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 dividends through the most recent Dividend Payment Date (whether or not such dividends have been declared and whether or
not there are funds of the Company legally available for the payment of dividends) on the Senior Preferred Shares have been or contemporaneously are declared and paid in full. 
  
 4.4. Any dividend payment made on the Senior Preferred Shares shall first be credited against the dividends accrued with
respect to the earliest Dividend Period for which dividends have not been paid. 
  
 4.5. All dividends paid with respect to Senior Preferred Shares pursuant to this Section 4 shall be paid pro rata to the holders entitled thereto based upon the number of Senior Preferred Shares held by each.

  
 4.6. Dividends (or cash amounts equal to accrued and unpaid
dividends) payable on the Senior Preferred Shares for any period shorter than three months shall be computed on the basis of the actual number of days elapsed either (x) from the date of issue of the Senior Preferred Shares to the last day of the
Dividend Period within which such date falls, or (y) from the commencement of the Dividend Period in which the Senior Preferred Shares are converted to the day immediately preceding the date of delivery of the Senior Preferred Shares for conversion,
as applicable. No interest shall accrue or be payable in respect of any accumulation of dividends or unpaid dividends on the Senior Preferred Shares. 
  
 4.7. After payment in full of the accumulated and unpaid dividends to which holders of Senior Preferred Shares are entitled, any further dividends paid by
the Company to its Shareholders shall be distributed, first amongst the holders of the Common Shares on a pro rata basis, until the Company has paid in respect of each Common Share an amount equal to the aggregate amount of dividends paid per Senior
Preferred Share, and second amongst the holders of the Senior Preferred Shares and the holders of the Common Shares on a pro rata basis, in each case assuming each holder of Senior Preferred Shares had converted its Senior Preferred Shares into
Common Shares pursuant to Section 8 below on the date of distribution by the Company. 
  
 5. Liquidation Preference. 
  
 5.1. Except as provided in Section 5.3, upon any voluntary or involuntary liquidation, dissolution or winding up of the Company or a reduction or decrease in the Company’s share capital resulting in a distribution of assets to the
holders of any class or series of the Company’s share capital, each holder of Senior Preferred Shares shall be entitled to payment out of the assets of the Company available for distribution of an amount equal to the Liquidation Preference per
Senior Preferred Share held by such holder, plus all accumulated and unpaid dividends therein to the date of such liquidation, dissolution, winding up or reduction or decrease in share capital before any distribution is made on any Junior Shares.
After payment in full of the Liquidation Preference and all accumulated and unpaid dividends to which holders of Senior Preferred Shares are entitled, any further distribution made by the Company to its Shareholders shall be distributed, first
amongst the holders of the Common Shares on a pro rata basis, until the Company has made a distribution to each Common Share equal to the Liquidation Preference per Senior Preferred Share divided by the Conversion Ratio, and second amongst the
holders of the Senior Preferred Shares and the holders of the Common Shares on a pro rata basis, assuming each holder of Senior Preferred Shares had converted its Senior Preferred Shares into Common Shares pursuant to Section 8 below on the date of
distribution by the Company. 
  

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 5.2. Neither the voluntary sale, conveyance, exchange or transfer (for cash, shares of stock, securities
or other consideration) of all or substantially all of the property or assets of the Company nor the consolidation, merger or amalgamation of the Company with or into any corporation or the consolidation, merger or amalgamation of any corporation
with or into the Company shall be deemed to be a voluntary or involuntary liquidation, dissolution or winding up of the Company or a reduction or decrease in the share capital of the Company, unless the consolidation, merger or amalgamation is
undertaken for the purpose of reducing or decreasing the share capital of the Company. 
  
 5.3. Any distribution made by the Company to its Shareholders resulting from a sale of all or any part of the assets of the Company or any of its Subsidiaries shall be distributed amongst the holders of the Senior
Preferred Shares and the holders of the Common Shares on a pro rata basis, assuming each holder of Senior Preferred Shares had converted its Senior Preferred Shares into Common Shares pursuant to Section 8 below on the date of distribution by the
Company. For the avoidance of doubt, (i) Section 4.1 shall not apply to distributions to holders of Senior Preferred Shares under this Section 5.3, and, subject to the last sentence of Section 4.2, the holders of Senior Preferred Shares shall be
entitled to receive such distributions without reference to the $650,000,000 cumulative operating earnings threshold specified in Section 4.1, (ii) payment of dividends to holders of Senior Preferred Shares in preference to and in priority over
dividends payable on Junior Shares pursuant to Section 4.2 shall not apply to distributions made under this Section 5.3, and (iii) Section 4.7 shall not apply to distributions made under this Section 5.3. 
  
 6. No Redemption. Senior Preferred Shares shall not be redeemable.

  
 7. Voting Rights. 
  
 7.1. In addition to the voting rights to which the holders of Senior
Preferred Shares are entitled under or granted by Bermuda law, the holders of Senior Preferred Shares shall be entitled to vote, in person or by proxy, at a special or annual meeting of shareholders or in any written consent in lieu of meeting, on
all matters entitled to be voted on by holders of Common Shares voting together as a single class with the Common Shares (and with other shares entitled to vote thereon, if any). With respect to any such vote, each Senior Preferred Share shall
entitle the holder thereof to cast that number of votes as is equal to the number of votes that such holder would be entitled to cast had such holder converted its Senior Preferred Shares into Common Shares pursuant to Section 8 below on the record
date for determining the shareholders of the Company eligible to vote on any such matters. 
  
 7.2. For so long as the holders of the Senior Preferred Shares continue to own the Relevant Percentage, the special rights attaching to the Senior Preferred Shares shall, with the intent that this Section 7.2 shall
create rights attaching to the Senior Preferred Shares for the purposes of section 47 of the Companies Acts, be deemed to be varied by any of the following actions with respect to the Company or any of its Subsidiaries, and the prior consent or
sanction of the holders of the Senior Preferred Shares (given in accordance with Bye-law 7) shall be required for every such action and the Company shall not permit any of them to be carried out, and shall take all actions within its power to
prevent any of its Subsidiaries from carrying any of them out, without such consent or sanction: 
  
 (a) appoint, or replace from office, the Chief Executive Officer of the Company; 
  

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 (b) enter into, or vary the material terms of, any transaction or series of related transactions
involving the acquisition or disposition of assets for aggregate consideration in excess of $25,000,000, other than transactions between the Company and any wholly-owned Subsidiary of the Company or between wholly-owned Subsidiaries of the
Company; 
  
 (c) enter into any merger, amalgamation or
consolidation with any other entity or any reorganization or recapitalization of its share capital, other than any such transaction not involving any person other than the Company and wholly-owned Subsidiaries of the Company; 
  
 (d) issue, redeem or repurchase any Equity Securities, other than (i) the
issuance of stock options (and Common Shares issuable pursuant to the exercise of stock options) granted, or the award of Commons Shares, under the Share Option Plan, (ii) the repurchase of Common Shares under the vesting provisions of any such
options or awards, (iii) the issuance of shares of any Subsidiary of the Company to the Company or to any other wholly-owned Subsidiary of the Company, (iv) the issuance of Senior Preferred Shares in connection with adjustments provided for in
Section 9 or (v) the issuance of Common Shares upon conversion of Senior Preferred Shares; 
  
 (e) incur or guarantee any indebtedness (including without limitation through the issuance of any bonds, notes or other financial obligations) other than
(i) indebtedness and guarantees existing on the date of issuance of the Senior Preferred Shares, (ii) trade indebtedness incurred in the ordinary course of business and (iii) consolidated indebtedness of the Company and its Subsidiaries in an
aggregate amount not to exceed $25,000,000 incurred in any calendar year; 
  
 (f) incur any single capital expenditure (or group of related capital expenditures to the extent each forms a part of one cohesive project) in excess of $25,000,000 annually and any other expenditures in excess of
$25,000,000 not included in the operating budget approved by the Board; 
  
 (g) (1) commence any case, proceeding or other action (A) under any bankruptcy, insolvency or similar law seeking to have an order of relief entered with respect to it or seeking to adjudicate it a bankrupt or
insolvent, or seeking reorganization, arrangement, adjustment, winding up, liquidation, dissolution, composition or other relief with respect to it or its debts or (B) to seek appointment of a receiver, trustee, custodian or other similar official
for it or all or any substantial part of its property, (2) make a general assignment for the benefit of its creditors or (3) admit in writing its inability to pay its debts when they become due; 
  
 (h) enter into, or vary the material terms of, any transaction with any
Related Party or its Subsidiaries, provided that this restriction shall not apply to (1) transactions entered into before the Relevant Date or otherwise expressly contemplated by the Plan of Reorganization of Global Crossing Ltd. and certain of its
Subsidiaries approved by the United States Bankruptcy Court for the Southern District of New York on September 16, 2002, as amended from time to time, (2) transactions entered into after the Relevant Date between the Company or any of its
Subsidiaries on the one hand and the STT Group Parent or any Subsidiary of the STT Group Parent on the other hand, and (3) transactions entered into after the Relevant Date which are entered into in the ordinary course of business of the Company or
its Subsidiaries, are on normal commercial terms, and do not involve amounts in excess of US$25,000,000 per transaction; 
  

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 (i) distribute to holders of Common Shares (whether by dividend or in a merger, amalgamation or
consolidation or otherwise) evidences of indebtedness, any class or series of shares in the capital of the Company, other securities, cash or assets (other than Common Shares or other securities referred to in Section 9(a) or a dividend payable
exclusively in cash and other than as a result of a Fundamental Change (as defined in Section 10)); or 
  
 (j) amend, repeal, waive or modify any provisions of this Schedule in any manner. 
  
 For purposes hereof, a Subsidiary shall be deemed to be wholly-owned by the Company if the Company directly or indirectly
beneficially owns all the outstanding capital stock of such Subsidiary. If the Company or any Subsidiary of the Company takes any of the foregoing actions without the consent or affirmative vote of the holders of the Senior Preferred Shares as
provided above, such action shall be deemed to be a variation of the class rights of the Senior Preferred Shares. The requisite majority approval of the holders of the Senior Preferred Shares, in accordance with the foregoing, shall be in addition
to any other majority required pursuant to the Bye-laws of the Company. 
  
 7.3. The STT Group Parent shall be conclusively presumed to have authority as agent to execute any consent pursuant to Section 7.2 on behalf of each of its Affiliates. 
  
 8. Conversion. 
  
 8.1. Subject to compliance with Bermuda law, each Senior Preferred Share shall be convertible at any time and from time to time at the option of the
holder thereof into a number of fully paid and nonassessable Common Shares equal to one multiplied by the Conversion Ratio as of the date of conversion. The “Conversion Ratio” as of any date shall be a fraction, the numerator of
which shall be 0.01 and the denominator of which shall be the Conversion Price as of such date. The “Conversion Price” shall be $0.01, subject to adjustment from time to time as provided in Section 9. The Conversion Ratio as of the
first date of issuance of the Senior Preferred Shares (the “Issuance Date”) shall be 1.0. 
  
 8.2. Conversion of Senior Preferred Shares may be effected by any holder upon the surrender to the Company at the principal office of the Company or at
the office of any agent or agents of the Company (the “Transfer Agent”), as may be designated by the Board, of the certificate or certificates for such Senior Preferred Shares to be converted accompanied by a written notice stating
that such holder elects to convert all or a specified whole number of such shares in accordance with the provisions of this Section 8 and specifying the name or names in which such holder wishes the certificate or certificates for Common Shares to
be issued. In case such notice shall specify a name or names other than that of such holder, such notice shall be accompanied by payment of all transfer taxes payable upon the issuance of Common Shares in such name or names. Other than such taxes,
the Company shall pay any documentary, stamp or similar issue or transfer taxes that may be payable in respect of any issuance or delivery of Common Shares upon conversion of Senior Preferred Shares pursuant hereto. As promptly as practicable after
the surrender of such certificate or certificates and the receipt of such notice relating thereto and, if applicable, payment of all required transfer taxes (or the demonstration to the satisfaction of the 
  

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 Company that such taxes have been paid), the Company shall deliver or cause to be delivered (x) certificates representing
the number of validly issued, fully paid and nonassessable full Common Shares to which the holder (or the holder’s transferee) of Senior Preferred Shares being converted shall be entitled and (y) if less than the full number of Senior Preferred
Shares evidenced by the surrendered certificate or certificates is being converted, a certificate or certificates, of like tenor, for the number of shares evidenced by such surrendered certificate or certificates less the number of shares being
converted. Such conversion shall be deemed to have been made at the close of business on the date of giving such notice and of such surrender of the certificate or certificates representing the Senior Preferred Shares to be converted so that the
rights of the holder thereof as to the shares being converted shall cease except for the right to receive Common Shares and accrued and unpaid dividends with respect to the Senior Preferred Shares being converted, in each case in accordance
herewith, and the person entitled to receive the Common Shares shall be treated for all purposes as having become the record holder of such Common Shares at such time. 
  
 8.3. If a holder of Senior Preferred Shares exercises conversion rights under Section 8.1, upon delivery of the shares for
conversion, such shares shall cease to accrue dividends pursuant to Section 4 as of the end of the day immediately preceding the date of such delivery, but such shares shall continue to be entitled to receive all dividends declared in respect of
such shares on or before such date. Any such declared dividends shall be payable on the date paid to other holders of Senior Preferred Shares by the Company as and when such dividends are paid to any remaining holders or, if none, on the date which
would have been the next succeeding Dividend Payment Date had there been remaining holders or such later time at which the Company believes it has adequate available funds under applicable law to make such a payment. 
  
 8.4. Notwithstanding anything herein to the contrary, but subject to the
provisions of Section 8.3 and to Section 9, upon conversion, no payment or adjustment shall be made by the Company to any holder of Senior Preferred Shares surrendered for conversion in respect of any accrued and unpaid dividends on the Senior
Preferred Shares surrendered for conversion. 
  
 8.5. In
connection with the conversion of any Senior Preferred Shares, no fractions of Common Shares shall be issued, but in lieu thereof, the Company shall pay a cash adjustment in respect of such fractional interest in an amount equal to such fractional
interest multiplied by the Liquidation Preference and divided by the Conversion Ratio. If more than one Senior Preferred Share shall be surrendered for conversion by the same holder at the same time, the number of full Common Shares issuable on
conversion thereof shall be computed on the basis of the total number of Senior Preferred Shares so surrendered. 
  
 8.6. The Company shall at all times reserve and keep available, free from preemptive rights, for issuance upon the conversion of Senior Preferred Shares
such number of its authorized but unissued Common Shares as will from time to time be sufficient to permit if necessary the conversion of all outstanding Senior Preferred Shares. Prior to the delivery of any securities which the Company shall be
obligated to deliver upon conversion of the Senior Preferred Shares, the Company shall comply with all applicable Bermuda laws which require action to be taken by the Company. All Common Shares delivered upon conversion of the Senior Preferred
Shares will upon delivery be duly and validly issued and fully paid, free of all Encumbrances and not subject to any preemptive rights. 
  

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 8.7. The manner of conversion of the Senior Preferred Shares shall be determined by the Board having
regard to the provisions of Bermuda law at the relevant time. The Board shall take all necessary action to ensure that the holders of the Senior Preferred Shares enjoy the full benefit of the conversion rights granted hereunder. 
  
 8.8. The holder of a Senior Preferred Share shall notify the Company (x) upon
the transfer (the “Transfer”) of any Senior Preferred Share, or of any currently exercisable right to vote or cause to be voted, any Senior Preferred Share (whether by proxy (other than a proxy given in the ordinary course of
business), declaration of trust or otherwise), to any person other than the STT Group Parent or an Affiliate of the STT Group Parent or (y) if such holder ceases to be an Affiliate of the STT Group Parent (the “Automatic Conversion
Event”). Upon notice to the Company of an Automatic Conversion Event, each Senior Preferred Share being Transferred, or held by such holder who ceases to be an Affiliate of the STT Group Parent, as the case may be, shall automatically
convert into the number of Common Shares into which each Senior Preferred Share is convertible as at the date of the Automatic Conversion Event in accordance with the foregoing provisions of this Section 8, and such conversion shall be deemed to
have become effective as of the date of the Automatic Conversion Event. 
  
 9. Adjustments. 
  
 (a) Common Share Splits
and Combinations. In case the Company shall at any time or from time to time after the Issuance Date (i) subdivide or split the outstanding Common Shares, (ii) combine or reclassify the outstanding Common Shares into a smaller number of shares,
(iii) issue by reclassification of the Common Shares into any shares in the capital of the Company or (iv) pay a dividend or make a distribution on Common Shares in Common Shares or other securities, then, and in each such case, either (x) the
Conversion Price in effect immediately prior to such event or the record date therefor, whichever is earlier, shall be adjusted, or (y) in the case of a subdivision, split or combination of the Common Shares, the Senior Preferred Shares shall be
similarly subdivided, split or combined, in each case so that the holder of any Senior Preferred Shares thereafter surrendered for conversion shall be entitled to receive the number of Common Shares or other securities of the Company which such
holder would have owned or have been entitled to receive after the occurrence of any of the events described above, had such Senior Preferred Shares been surrendered for conversion immediately prior to the occurrence of such event or the record date
therefor, whichever is earlier. An adjustment made pursuant to this Section 9(a) shall become effective at the close of business on the day upon which such corporate action becomes effective. Such adjustment shall be made successively whenever any
event listed above shall occur. 
  
 (b) Senior Preferred Share
Splits and Combinations. The Company shall not subdivide, split, combine or reclassify the Senior Preferred Shares, other than in a subdivision, split or combination pursuant to Section 9(a) in connection with an equivalent subdivision, split or
combination of the Common Shares. 
  
 (c) Below Market Issuance
of Equity Securities. In case the Company shall issue Equity Securities pursuant to an offer to holders of its Common Shares at a price per share less than the Current Market Price (as defined below), and such offer is not extended to the
holders of the Senior Preferred Shares, the Conversion Price in effect immediately prior to the close of business on the record date fixed for determination of holders of Common Shares entitled to receive such offer shall be reduced by multiplying
such 
  

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 Conversion Price by a fraction, the numerator of which is the sum of the number of Common Shares outstanding at the close
of business on such record date and the number of Common Shares that the aggregate offering price of the total number of Common Shares so issued would purchase at such Current Market Price and the denominator of which is the sum of the number of
Common Shares outstanding at the close of business on such record date and the number of additional Common Shares so issued. For purposes of this Section 9(c), the issuance of rights or warrants to subscribe for or purchase securities convertible
into Common Shares shall be deemed to be the issuance of rights or warrants to purchase the Common Shares into which such securities are convertible at an aggregate offering price equal to the sum of the aggregate offering price of such securities
and the minimum aggregate amount (if any) payable upon conversion of such securities into Common Shares. Such adjustment shall be made successively whenever any such event shall occur. If the Company issues any Equity Securities pursuant to an offer
to holders of its Common Shares for consideration other than cash, the amount of non-cash consideration received by the Company shall be deemed to be the fair market value of the non-cash consideration, as determined mutually by the Board and the
STT Group Parent (if the STT Shareholder Group beneficially owns the Relevant Percentage), and if the Board and the STT Group Parent shall fail to agree, at the Company’s expense by an appraiser chosen by the Board and reasonably acceptable to
the STT Group Parent. 
  
 10. Fundamental Changes. In case
any transaction or event (including, without limitation, any merger, amalgamation, consolidation, sale of assets, tender or exchange offer, reclassification, compulsory share exchange or liquidation) shall occur in which all or substantially all
outstanding Common Shares is converted into or exchanged for stock, other securities, cash or assets (each, a “Fundamental Change”), the holder of each Senior Preferred Share outstanding immediately prior to the occurrence of such
Fundamental Change shall have the right upon any subsequent conversion to receive (but only out of legally available funds, to the extent required by applicable law) the kind and amount of stock, other securities, cash and assets that such holder
would have received if such share had been converted immediately prior thereto. 
  
 11. Transfer Restrictions. 
  
 11.1. The Senior Preferred Shares shall bear the following legend: 
  
 “THE SERIES A SENIOR PREFERRED SHARES, WITH LIQUIDATION PREFERENCE $10.00 PER SHARE, OF THE COMPANY REPRESENTED BY THIS CERTIFICATE MAY NOT BE OFFERED OR SOLD ABSENT REGISTRATION UNDER THE U.S. SECURITIES ACT OF
1933, AS AMENDED (THE “ACT”), AND ANY APPLICABLE STATE SECURITIES LAWS OR AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS UNDER THE ACT”. 
  
 11.2. The Common Shares issuable upon conversion of the Senior Preferred Shares shall bear the following legend: 

 
 “THE COMMON SHARES, PAR VALUE $0.01 PER SHARE, OF THE COMPANY
REPRESENTED BY THIS CERTIFICATE MAY NOT BE OFFERED OR SOLD ABSENT REGISTRATION UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), AND ANY APPLICABLE STATE SECURITIES LAWS OR AN APPLICABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS UNDER THE ACT”. 
  

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 12. Certain Definitions. 
  
 12.1. As used in this Schedule, the following terms shall have the following meanings, unless the context otherwise
requires: 
  
 “Current Market Price” of the
Common Shares shall mean, as of the date of determination, (a) the average of the daily Market Price (as determined under clause (a), (b) or (c) of the definition of Market Price) during the immediately preceding thirty trading days ending on such
date, and (b) if the Common Shares are not listed or admitted to trading on any national securities exchange or quoted in the over-the-counter market, then the Market Price as determined under clause (d) of the definition of Market Price on such
date. 
  
 “Encumbrances” shall mean any mortgage,
charge (whether fixed or floating), pledge, lien, hypothecation, assignment, deed of trust, title retention, security interest or other encumbrance of any kind securing, or conferring any priority of payment in respect of any person (including
without limitation any right granted by a transaction which, in legal terms, is not the granting of security but which has an economic or financial effect similar to the granting of security under applicable law), any proxy, power of attorney,
voting trust agreement, interest, option, right of first offer, negotiation or refusal, or transfer restriction. 
  
 “Global Marine” means Global Marine Systems Ltd., a company organized under the laws of England and Wales. 
  
 “Market Price” of the Common Shares as of the date of
determination shall mean (a) if such Common Shares are listed or admitted to trading on a national securities exchange, the closing price per share of such Common Shares on such date published in The Wall Street Journal (National Edition) or, if no
such closing price on such date is published in The Wall Street Journal (National Edition), the average of the closing bid and asked prices on such date, as officially reported on the principal national securities exchange on which such Common
Shares are then listed or admitted to trading; or (b) if on the date of determination, such Common Shares are not then listed or admitted to trading on any national securities exchange but are designated as a national market system security by the
National Association of Securities Dealers, Inc., the last trading price of such Common Shares on such date; or (c) if there shall have been no trading on the date of determination, or if such Common Shares are not designated as a national market
system security by the National Association of Securities Dealers, Inc., the average of the reported closing bid and asked prices of such Common Shares on the date of determination, as quoted in the over-the-counter market; or (d) if such Common
Shares are not then listed or admitted to trading on any national securities exchange, or are not designated as a national market system security by the National Association of Securities Dealers, Inc., or are not quoted in the over-the-counter
market, then the market price per share on the date of determination as determined mutually by the Board and the STT Group Parent (if the STT Shareholder Group beneficially owns the Relevant Percentage), and if the Board and the STT Group Parent
shall fail to agree, at the Company’s expense by an appraiser chosen by the Board and reasonably acceptable to the STT Group Parent. 
  
 “Related Party” shall mean any person that holds Equity Securities representing at least 10% or more of the Company’s outstanding
Common Shares, calculated on a non-diluted and as-converted basis. 
  

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 “Relevant Percentage” shall mean Equity Securities representing 15% or more of the
Company’s outstanding Common Shares, calculated on a non-diluted and as-converted basis but excluding the Common Shares, up to a maximum of 3,478,261 (subject to adjustment for share divisions, stock splits, consolidations, combinations and
similar events), reserved or issued under the Share Option Plan. 
  
 12.2. In calculations of share numbers, references to a “fully diluted basis”, a “non-diluted basis” and an “as-converted basis” shall have the meanings set forth in the Bye-laws of the Company. 
  
 13. Headings. The headings of the Sections of this Schedule are for
convenience of reference only and shall not define, limit or affect any of the provisions hereof. 
  
 14. Bye-Laws. This Schedule shall solely for ease of reference be attached to the Bye-laws of the Company, but shall not form part of the Bye-laws.

  

 11 

 IN WITNESS WHEREOF, the Company has caused this Certificate of Designations to be duly signed on its
behalf on this 9th day of December, 2003. 
  

			
	GLOBAL CROSSING LIMITED
	(FORMERLY GC ACQUISITION LTD.), a
	company incorporated under the laws of
	Bermuda
		
	By:	 	 /s/ John B. McShane

	 	 	 Name: John B. McShane

	 	 	 Title: Attorney-In-FactEmployment Agreement dated as of December 9, 2003

 Exhibit 10.3 
  
 FORM OF EXECUTION COPY 
  
  
 EMPLOYMENT AGREEMENT 
  
 This AGREEMENT (the “Agreement”) is made as of the 9th day of
December, 2003 between Global Crossing Limited, a Bermuda corporation (formerly known as GC Acquisition Ltd.) (the “Company”), and John J. Legere (“Executive”). 
  
 Upon the later of (a) the effective date of the chapter 11 plan of Global
Crossing Ltd., a Bermuda corporation (“GX”), and (b) the Closing Date, as such term is defined in the Purchase Agreement dated as of August 9, 2002 (the “Purchase Agreement”) among Global Crossing Ltd., Global Crossing Holdings
Ltd., the Joint Provisional Liquidators, Singapore Technologies Telemedia Pte Ltd and Hutchison Telecommunications Limited (the “Effective Date”), this Agreement shall supersede, effective as of the Effective Date, the prior employment
agreement between GX and Executive, made as of June 3, 2002 (the “Original Agreement”), except to the extent otherwise specifically provided herein. 
  

For good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Company, and Executive hereby agree as follows:

  
 1. Employment. 
  
 Subject to the terms and conditions hereinafter contained, the Company hereby
agrees to employ Executive and Executive accepts the employment by the Company. 
  
 (a) During the Term (as defined below), Executive shall hold the title of Chief Executive Officer (“CEO”) of the Company, shall be the most senior executive officer of the Company, and shall have those
powers and duties normally associated with the position of CEO and such other powers and duties consistent with such position as may be prescribed by the Board of Directors of the Company (the “Board”); provided, however,
that in no event shall Executive’s powers and duties hereunder be materially less than those duties Executive held with GX immediately prior to the Effective Date other than as a result of the consummation of the GX plan of reorganization.
During the Term, Executive shall (i) be invited to attend and have the right, at his election and at Company expense, to attend and participate in all regular and telephonic meetings of the Board of Directors of the Company (the “Board”),
and committees thereof; (ii) shall receive copies of all resolutions to be acted upon by written consent, at the same time as they are provided to Board members, and (iii) in either case shall receive all materials distributed to Board members at
the same time as they are provided to such members; provided that Executive shall not be a director of the Company and shall not have the right to vote on any matter to be acted upon by the Board or a Board Committee. Notwithstanding the foregoing,
in no event shall Executive have the right to attend the portion of any meeting called by (A) the Board to determine whether or not to terminate Executive’s employment in accordance with Section 6 of the Agreement (i.e., a termination
for “Cause”), or (B) any committee of the Board to act on a matter that is required under U.S. securities or tax laws to be acted upon solely by independent directors. In addition, Executive shall not have the right to attend the portion
of any 

 meeting called by the Board or any committee thereof, or to receive any resolutions or other materials provided to the
members of the Board or any committee thereof related to such portions of such meetings, that counsel to the Board or any committee thereof (whichever is applicable) reasonably determines relates to a matter, either initiated by Executive or in
which Executive is otherwise involved, in which Executive’s interests are adverse to the interests of the Company or the Board. During the Term, Executive shall report directly to the Board in carrying out his responsibilities under this
Agreement. Executive’s principal business location shall be at the Company’s principal executive offices to be established at a mutually agreed-upon location in New York/New Jersey as to which Executive’s consent shall not be
unreasonably withheld. 
  
 (b) During the Term, all executive
officers of the Company shall report to Executive. 
  
 (c)
Executive shall faithfully serve the Company to the utmost of his ability and shall use his best efforts to promote the interests of the Company and shall devote all of his time and attention during the normal working hours of the Company to the
said duties. The foregoing shall not preclude Executive from engaging in appropriate civic, charitable or religious activities or from devoting a reasonable amount of time to private investments or, subject to Board approval, from serving on the
boards of directors of other entities, as long as none of such activities, investments and service materially interfere or conflict with Executive’s responsibilities to the Company or compete, directly or indirectly, with the Company or its
affiliates. 
  
 2. Term. Subject to the provisions
of Section 3(e) and Section 6 below, the term of this Agreement (the “Term”) shall commence on the Effective Date and continue for a period ending on the fourth anniversary of the Effective Date. 
  
 3. Compensation.  
  
 (a) Base Salary. The Company agrees to pay and Executive agrees
to accept as compensation for the services rendered by Executive during his employment hereunder an annualized base salary of $1,100,000 (“Base Salary”), to be paid in accordance with the Company’s regular payroll practices, but in no
event less frequently than semi-monthly. 
  
 (b) Performance
Bonus. On the Effective Date, the Company shall pay Executive, by wire transfer in readily available US federal funds to an account designated by Executive, an amount equal to $2.7 million. 
  
 (c) Annual Bonus. Executive shall also be eligible to receive
an annual bonus (“Annual Bonus”) in accordance with the Company’s annual incentive plan beginning with the bonus payable in respect of the fiscal year of the Company commencing January 1, 2003. The amount of the Annual Bonus shall be
determined based upon the achievement of established performance goals which, to the extent related to corporate goals, shall be the same for Executive as other members of the Company’s senior executive team. All performance goals shall be
determined by the Compensation 
  

 2 

 Committee of the Board (the “Compensation Committee”). Executive shall have a target annual bonus opportunity
equal to 100% of his Base Salary such that, upon achievement of performance goals at target level, Executive shall receive an Annual Bonus equal to 100% of Base Salary, with scaling of Annual Bonus in accordance with plan parameters based on
performance above or below target performance. 
  
 (d)
Company Stock Options. As soon as practicable following adoption and approval of a stock incentive or other similar equity plan by the Company, Executive shall receive an initial grant of the Company of stock options to purchase not
less than 0.69 percent of the number of fully diluted shares that will be issued and outstanding after exercise of all options, warrants, or convertible securities issued or contemplated to be issued in connection with the granting of options to
employees under any stock incentive or other similar equity plan of the Company, or with the issuance of securities to the Investors (as defined in the Purchase Agreement) in connection with the Closing (as defined in the Purchase Agreement), to
creditors in connection with the consummation of the Plan of Reorganization of Global Crossing Ltd., or to any other Investors in the Company. Such stock options shall contain terms and conditions not less favorable than the terms and conditions set
forth on Exhibit A. For the avoidance of doubt, for the purpose of this Section 1(d), the number of fully diluted shares shall not exceed 43,478,261. Following the initial grant, Executive shall be eligible to receive grants of Company stock options
on a basis not less favorable than the grants made for other senior executives of the Company; provided, however, that any stock option agreement evidencing such grants shall contain terms and conditions not less favorable than the
terms and conditions set forth on Exhibit A. 
  
 (e)
Management Protection Plan. Executive shall participate in the Company’s Key Management Protection Plan (the “Protection Plan”) in accordance with the terms and conditions of the Plan, subject to Section 6(g)
below. 
  
 (f) Withholding. All payments required
under this Agreement shall be made net of withholding for taxes and other amounts required by applicable laws, which shall be paid by the withholding agent to the applicable tax authorities within the time prescribed by law. 
  
 4. Perquisites and Benefits. 
  
 (a) General. Executive shall be eligible to participate in all
pension and welfare benefits provided by the Company to its employees and shall be entitled to such benefits and shall be covered under the Company’s perquisite programs on a basis no less favorable than those provided to the most senior
executive officers of the Company. 
  
 (b) Vacation.
Executive shall be entitled to four weeks of paid vacation per year. Executive may not carryover more than four weeks paid vacation from year to year. On termination of Executive’s employment for whatever reason, Executive shall be entitled to
be paid for all accrued but unused vacation through the date of termination. 
  

 3 

 (c) Relocation. In the event of Executive’s relocation to the New York metropolitan
area, Executive shall receive relocation benefits no less favorable than those provided in the Company’s relocation policy, a copy of which is annexed hereto as Exhibit B and incorporated by reference. Notwithstanding the foregoing, temporary
living expenses shall be provided on a monthly basis at the same level as was in effect on January 15, 2003 (which is, for the avoidance of doubt, $13,000.00 per month), for 12 months from the Effective Date, and a tax gross up shall also be
provided with respect thereto on a timely basis to permit payment of all applicable taxes with respect to the temporary living expenses and the gross up. 
  
 5. Expense Reimbursements. 
  
 Executive shall be reimbursed for reasonable business expenses incurred by Executive on behalf of the Company, including, but not limited to, travel and
entertainment expenses, in accordance with Company policies. Business travel shall be by first class air. 
  
 6. Termination/Resignation. 
  
 Subject to the provisions below, Executive may be terminated by the Company at any time during the Term, with or without cause. Executive may resign at
any time for any reason. 
  
 (a) Death or
Disability. In the event Executive’s employment is terminated by the Company during the Term due to death of Executive or due to a disability which renders Executive unable to fulfill his duties on a full-time basis more than 180 days
in any 365-day period (a “Disability”), then Executive or his estate shall receive at termination, a lump sum payment covering (i) Base Salary, prorated through the date of termination, (ii) any unpaid Annual Bonus relating to the year
immediately prior to the year in which the Termination Date occurs (irrespective of any requirement that Executive be employed on the date of payment), and a pro rata Annual Bonus (calculated by assuming that target level performance was attained)
for the year of such termination, (iii) accrued but unused vacation, and (iv) reimbursement for unreimbursed business expenses incurred pursuant to Section 5 hereof (collectively, “Accrued Obligations”). In addition, all unvested options
to acquire shares of the Company held by Executive on the date of such termination shall become immediately vested, and Executive or his successors, or Executive’s estate, as applicable, shall have the right to exercise such options for 12
months from Executive’s date of termination, or if shorter, for the balance of the unexpired term (“Full Option Vesting and Extended Exercise Rights”). 
  
 (b) Termination For Cause. (i) Actions or omissions during the Term that will entitle the Company to terminate
Executive for cause (“Termination for Cause”) shall be: 
  
 (1) conviction of a crime of moral turpitude, which causes serious economic injury to the Company, or conviction of a felony; or 
  

 4 

 (2) material breach of the Proprietary Information Agreement as described in Section 7
hereof; or 
  
 (3) fraud, embezzlement, or gross
negligence which has caused serious and demonstrable injury to the Company or its affiliates; or 
  
 (4) egregious performance or egregious failure to perform Executive’s duties as CEO of the Company; 
  
 provided, however, that a failure to achieve performance objectives shall not
constitute the sole grounds for, or be treated as the sole basis for, a Termination for Cause under this Agreement. 
  
 (ii) A Termination for Cause shall not take effect unless the Company shall have given or delivered to Executive (A) reasonable notice
(the “Preliminary Notice”) setting forth, in reasonable detail the facts and circumstances claimed to provide a basis for a Termination for Cause, (B) an opportunity for Executive to cure any action or omission alleged as the basis for
such termination under subsections (b)(i)(2) or (b)(i)(4) of this Section 6, if curable, (C) a reasonable opportunity for Executive, together with his counsel, to be heard before the Board, and (D) following such hearing, a “Notice of
Termination for Cause,” which shall include a copy of a resolution duly adopted by the affirmative vote of not less than a majority of the entire membership of the Board at a meeting of the Board finding that, in the informed, reasonable, good
faith judgment of the Board, Executive was guilty of conduct specified in the Preliminary Notice (the date of receipt by Executive of such Notice of Termination for Cause, the “Termination Date”). Upon receipt of the Preliminary Notice,
Executive shall have thirty (30) days in which to appear before the Board with counsel, or take such other action as he may deem appropriate, and such thirty (30) day period is hereby agreed to as a reasonable opportunity for Executive to be heard.

  
 (iii) Upon Termination for Cause, Executive
shall be entitled to a lump sum payment covering the Accrued Obligations (except that there shall be no pro rata payment of Annual Bonus for the year of termination) and, except as provided under the terms of the Company compensation and benefit
plans, including without limitation, any stock incentive plans and applicable award agreements, and under Section 9(i) and 9(j) hereof, shall not be entitled to receive any further compensation or payments hereunder. 
  
 (c) Termination Other Than For Cause. Executive may be
terminated by the Company during the Term at any time and for any (or no) reason, upon the giving of notice by the Company to Executive of termination. Unless such termination satisfies all the conditions for a Termination for Cause or a termination
on account of Executive’s Disability, such termination shall be treated as a Termination other than for Cause. In the event of a Termination other than for Cause, the Company may, in the notice of termination, discharge Executive immediately or
as of such future 
  

 5 

 date, not to exceed one month, as the Company may determine to be appropriate. In the event that Executive is given
notice of termination pursuant to this subsection: 
  
 (i) on or prior to the second anniversary of the Effective Date, Executive shall receive at termination (I) a lump sum payment covering the Accrued Obligations; (II) a lump sum cash severance payment equal to the amount provided in Section
4(a) and Schedule 2 of the Protection Plan, and benefits continuation as provided in the Section 4(c) and Schedule 2 of the Protection Plan, each as in effect prior to the second anniversary of the Effective Date (without regard to whether the
Protection Plan shall have been, or is, terminated prior to the completion of such payments, it being understood that the benefits provided for under this Agreement shall not also be provided under the Protection Plan, so that there shall be no
duplication of payments or benefits); and (III) Full Option Vesting and Extended Exercise Rights; 
  
 (ii) following the second anniversary of the Effective Date but on or prior to the third anniversary of the Effective Date, Executive
shall receive at termination (I) a lump sum payment covering the Accrued Obligations; (II) a lump-sum payment equal to two (2) times the sum of Base Salary plus Annual Bonus (calculated by assuming that target level performance was attained); (III)
for a period of two (2) years following the date of such termination (or until such earlier date as equivalent benefits are provided from other employment), continuation of benefits provided in accordance with Section 4 hereof; and (IV) Full Option
Vesting and Extended Exercise Rights; and 
  
 (iii) following the third anniversary of the Effective Date, Executive shall receive at termination (I) a lump sum payment covering the Accrued Obligations; (II) a lump-sum payment equal to one (1) times the sum of Base Salary plus Annual
Bonus (calculated by assuming that target level performance was attained); (III) for a period of one (1) year following the date of such termination (or until such earlier date as equivalent benefits are provided from other employment), continuation
of benefits provided in accordance with Section 4 hereof; and (IV) Full Option Vesting and Extended Exercise Rights. 
  
 (d) Resignation for Good Reason. The occurrence of any of the following events during the Term without his express written consent shall
entitle Executive to resign for Good Reason (“Good Reason Event”) during the Term: (i) any material diminution in the nature or scope of Executive’s authority, powers, functions, duties, positions or responsibilities from those
provided under this Agreement, or the assignment of duties, responsibilities or reporting relationships that are inconsistent with and adverse to his then positions or responsibilities under this Agreement; (ii) any material uncured breach by the
Company of this Agreement (including any failure to provide compensation when and as required hereunder, unless cured within 10 business days of such failure); or (iii) failure of any successor of the Company to assume in writing all obligations
imposed on the applicable assignor hereunder on or prior to the date of such succession, unless such assumption occurs by operation of law. For 60 days following the occurrence of a Good Reason Event, Executive shall have the right to 
  

 6 

 deliver a notice of breach to the Company detailing the specific Good Reason Event that has occurred. In the event that
the Company does not cure the breach, if susceptible of cure, within 60 days after receipt of notice, then Executive shall have 30 days to deliver notice of resignation. Upon such resignation, Executive shall receive the same payments and benefits
as provided in Section 6(c) hereof. 
  
 (e) Resignation from
Board. Upon termination of Executive’s employment with the Company for any reason, Executive shall resign as of the date of such termination from the Board and any affiliate board of directors. 
  
 (f) Payments in Cash. Unless otherwise specifically indicated,
all payments under Section 6 shall be made by wire transfer of immediately available U.S. federal funds on the date indicated in accordance with account instructions furnished by Executive or his tax accountant. 
  
 (g) Management Protection Plan. Notwithstanding any provision
of the Protection Plan to the contrary, for purposes of Section 4(g) of the Protection Plan, in no event shall any amounts received by Executive as a result of (i) Full Option Vesting and Extended Exercise Rights, (ii) the exercise of any stock
options, or (iii) payment by the Company of the Gross-Up Payment (as described in Section 8 below), constitute “cash severance” under such section of the Plan. 
  
 7. Confidentiality and Proprietary Information. 
  
 Executive shall comply in all respects with the terms and conditions of the Proprietary Information Agreement annexed hereto
as Exhibit C hereto and incorporated by reference. 
  
 8.
Gross-Up Payments. 
  
 (a) In the event that any
amount or benefit paid or distributed to Executive pursuant to this Agreement, together with any amounts or benefits otherwise paid or distributed to Executive by the Company (or, in either case, to be paid or distributed), including without
limitation, amounts paid or payable under the Protection Plan, but excluding amounts payable pursuant to this Section 8 (collectively, the “Covered Payments”), are or become subject to the tax (the “Excise Tax”) imposed under
Section 4999 of the Internal Revenue Code of 1986, as amended, or any similar tax that may hereafter be imposed, or any interest or penalties are or will be incurred by Executive with respect to such excise tax, other than as a result of the
consummation of Plan of Reorganization of Global Crossing, Ltd., or the transactions contemplated by the Purchase Agreement dated as of August 9, 2002 among Global Crossing Ltd., Global Crossing Holdings Ltd., the Joint Provisional Liquidators,
Singapore Technologies Telemedia Pte. Ltd and Hutchison Telecommunications Limited, the Company shall pay to Executive, at the time specified in subsection (e) below, an additional cash amount (the “Gross-Up Payment”) such that the net
amount retained by Executive with respect to such Covered Payments, after deduction of the Excise Tax on the Covered Payments and any related interest, or penalties, and any Federal, state and local income tax, employment tax and Excise Tax on the
Gross-Up Payment provided for by this Section 8, shall be equal to the amount of the Covered Payments. 
  

 7 

 (b) All determinations required to be made under this Section 8, including whether and when a Gross-Up
Payment is required and the amount of such Gross-Up Payment and the assumptions to be utilized in arriving at the determination, shall be made by a nationally recognized certified public accounting firm selected by the Company (other than the
Company’s independent auditors, or any firm that has received fees from the Company or any of its affiliates within the two (2) year period prior to such selection) with the consent of Executive (the “Accounting Firm”), such consent
not to be unreasonably withheld, which shall provide detailed supporting calculations both to the Company and Executive within 20 days after the receipt of notice from Executive that there has been a Covered Payment, or such earlier time as is
requested by the Company. All fees and expenses of the Accounting Firm shall be borne solely by the Company. 
  
 (c) For purposes of determining the amount of the Gross-Up Payment, Executive shall be deemed to pay: 
  
 (i) Federal income taxes at the highest applicable marginal
rate of Federal income taxation for the calendar year in which the Gross-Up Payment is to be made, and 
  
 (ii) any applicable state and local income taxes at the highest applicable marginal rate of taxation for the calendar year in which the
Gross-Up Payment is to be made, net of the maximum reduction in Federal incomes taxes which could be obtained from the deduction of such state or local taxes if paid in such year. 
  
 (d) In the event that the Excise Tax is later determined by the Accounting Firm or the Internal Revenue Service to exceed
the amount taken into account hereunder at the time the Gross-Up Payment is made (including, but not limited to, by reason of any payment the existence or amount of which cannot be determined at the time of the Gross-Up Payment), the Company shall
make an additional Gross-Up Payment in respect of such excess (plus any interest or penalty payable with respect to such excess) within not more than twenty (20) days of such determination. In the event that the Excise Tax is subsequently determined
by the Accounting Firm or pursuant to any proceeding or negotiations with the Internal Revenue Service to be less than the amount taken into account hereunder in calculating the Gross-Up Payment made, Executive shall repay to the Company, within not
more than twenty (20) days of such determination, the portion of such prior Gross-Up Payment that would not have been paid if such reduced Excise Tax had been applied in initially calculating such Gross-Up Payment. Notwithstanding the foregoing, in
the event any portion of the Gross-Up Payment to be refunded to the Company has been paid to any Federal, state or local tax authority, repayment thereof shall not be required unless and until actual refund of such portion has been made to Executive
by the Internal Revenue Service or state or local tax authority, and interest payable to the Company shall not exceed interest received to Executive by such tax authority for the period it held such portion. Executive and the 
  

 8 

 Company shall mutually agree upon the course of action to be pursued (and the method of allocating the expenses thereof)
if Executive’s good faith claim for refund or credit is denied. 
  
 (e) The Gross-Up Payment (or portion thereof) provided for in Section (a) above shall be paid as soon as practicable following Executive’s receipt of any Covered Payments, but in no event later than thirty (30) days following the date
the Company and Executive receive detailed supporting calculations from the Accounting Firm, in accordance with subsection (b) above. 
  
 9. Miscellaneous. 
  
 (a) Notices. Any notice or other communications provided for in this Agreement shall be in writing and deemed received upon receipt after
delivery by certified mail, return receipt requested, or by hand as follows: (i) in the case of the Company, to the Board of Directors of the Company, at the Company’s offices at 200 Park Avenue, Florham Park, NJ 07932, or at such other address
as shall be communicated in the manner provided herein and (ii) in the case of Executive, to Executive at the Company’s offices at 200 Park Avenue, Florham Park, NJ 07932 Attention: John J. Legere, with a simultaneous copy to Stephen Lindo,
Esq. at Willkie Farr & Gallagher, 787 Seventh Avenue, New York, New York 10019-6099, or to such other addresses as shall be communicated in the manner provided herein. An email copy shall also be provided (i) to Executive at his regular
corporate email address, and (ii) Stephen T. Lindo at slindo@willkie.com. 
  
 (b) Modification/Waiver. No waiver or modification in whole or in part of this Agreement, or any term or condition hereof, shall be effective against any party unless in writing and duly signed by the
parties hereto. Any waiver or any breach of any provision hereof, or of any right or power by any party on one or more occasions shall not be construed as a waiver of, or a bar to, the exercise of such right or power on any other occasion or as a
waiver of any subsequent breach. 
  
 (c)
Severability. Each provision of this Agreement shall be interpreted so as to be effective and valid under applicable law, but if any provision of this Agreement shall be held to be prohibited by or invalid under applicable law, such
provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of such provision of the remaining provisions of this Agreement. 
  
 (d) Binding Effect: Successors. This Agreement shall inure to the benefit of and shall be binding upon the
Company and its successors, assigns and legal representatives and Executive, his heirs and legal representatives. Executive may not assign, transfer, or otherwise dispose of this Agreement, or any of his other rights or obligations hereunder (other
than his rights to payments hereunder, which may be transferred only by will or by the laws of descent and distribution), without the prior written consent of the Company, and any such attempted assignment, transfer or other disposition without such
consent shall be null and void. The Company shall be entitled to 
  

 9 

 assign its obligations under this Agreement, without the prior written consent of Executive, (i) in connection with an
arm’s-length merger or consolidation of such party with another unaffiliated corporation or (ii) in connection with an arm’s-length sale of all or substantially all of its assets or business operations to another person or entity, provided
that such assignee expressly assumes all of the rights and obligations of such party hereunder. After any such assignment, this Agreement shall continue in full force and effect. 
  
 (e) Survival of Provisions of the Original Agreement. Executive’s rights under Section 7(h), 7(i) and the
Release executed by GX pursuant to the Original Agreement on June 3, 2002, shall survive the execution of this Agreement and shall remain in full force and effect. 
  
 (f) Entire Agreement. This Agreement and the other agreements referenced herein set forth the entire agreement
between the Company and Executive with respect to the subject matter hereof. Except as expressly set forth herein, this Agreement supersedes all other agreements and understandings, written or oral, between the parties hereto with respect to the
subject matter hereof, including, without limitation, the Original Agreement. 
  
 (g) Controlling Law. This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of Delaware, without regard to conflict of laws. 
  
 (h) Authority and Ratification. The Company represents that it
has obtained all approvals, including Board and Compensation Committee approvals, required to enter into and perform its obligations under this Agreement, that no other agreements would prevent or conflict with the Company entering into this
Agreement. 
  
 (i) Disputes. 
  
 (i) If a dispute or controversy arises out of or in
connection with Executive’s compensation or severance, whether pursuant to this Agreement, the Protection Plan, the provisions of the Original Agreement and the Release referenced in Section 9(e) hereof, or any other agreement to which
Executive and the Company are parties (each a “Compensation Agreement”), the parties shall first attempt in good faith to settle the dispute or controversy through negotiations. Thereafter, any remaining unresolved dispute or controversy
arising out of or in connection with a Compensation Agreement, upon a written notice from Executive to the Company, either before suit thereupon is filed or within 20 business days thereafter, be settled exclusively by arbitration in accordance with
the Commercial Arbitration Rules of the American Arbitration Association designated by Executive for such arbitration proceeding, such city to be (A) New York, New York, (B) any city, county or parish in the continental United States in which
Executive’s principal residence is located at the time such arbitration proceeding is commenced, (C) any city, county or parish in the continental United States which is the location of the Company’s principal U.S. business operations

  

 10 

 or its U.S. headquarters or (D) any other location as to which the parties mutually agree. Judgment may
be entered on the arbitrator’s award in any court having jurisdiction. Executive shall, however, be entitled to seek specific performance of the Company’s obligations hereunder during the pendency of any dispute or controversy arising
under or in connection with a Compensation Agreement. 
  
 (ii) Any legal action concerning a Compensation Agreement, other than a mediation or an arbitration described subsection (i) of this Section 9(i), whether instituted by the Company or Executive, shall be brought and resolved only in a state
court of competent jurisdiction located in the territory that encompasses the city, county, or parish in which Executive’s principal residence is located at the time such action is commenced. The Company hereby irrevocably consents and submits
to and shall take any action necessary to subject itself to the personal jurisdiction of that court and hereby irrevocably agrees that all claims in respect of the action shall be instituted, heard, and determined in that court. The Company agrees
that such court is a convenient forum, and hereby irrevocably agrees that all claims in respect of the action shall be instituted, heard, and determined in that court, and hereby irrevocably waives, to the fullest extent it may effectively do so,
the defense of an inconvenient forum to the maintenance of the action. Any final judgment in the action may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. 
  
 (iii) Each party shall pay the cost of his or its own legal
fees and expenses incurred in connection with any dispute (including an arbitration or court proceeding) relating to the interpretation or enforcement of any provision of a Compensation Agreement; provided, however, that if Executive prevails on any
material issue submitted in such dispute, the Company shall pay or reimburse the Executive for all reasonable costs and expenses, including reasonable attorneys’ fees and disbursements, incurred by the Executive in connection therewith. The
Company shall pay prejudgment interest on any money judgment obtained by Executive as a result of a proceeding under this Section 9(i), calculated at the rate provided in Section 1274(b)(2) (B) of the Code. 
  
 (j) Indemnification. The Company shall indemnify Executive to
the fullest extent permitted by law (including a payment of expenses in advance of final disposition of a proceeding) as in effect at the time of the subject act or omission, or by the terms of any indemnification agreement between the Company and
Executive, whichever affords the greatest protection to Executive, and Executive shall be a named insured under and shall be entitled to the protection of all insurance policies the Company may maintain generally for the benefit of its senior
executive officers and directors (and to the extent the Company maintains such an insurance policy or policies, in accordance with its or their terms to the maximum extent of the coverage available for any company officer), against all costs,
charges, expenses or liabilities whatsoever incurred or sustained by Executive (including but not limited to any judgment entered by a court of law) at the time such costs, charges, expenses or liabilities are incurred or sustained, in connection
with any action, suit or proceeding to which Executive may be made a party by reason of his being or having been an officer or employee of the Company, or serving as a director, 
  

 11 

 officer or employee of an affiliate of the Company. Executive’s rights under this Section 9(j) shall continue
without time limit for so long as he may be subject to any such liability, whether or not the Term may have ended. In addition, to the extent commercially reasonable, the Company shall maintain, at all times during the Term, directors’ and
officers’ liability insurance coverage under which Executive is a covered insured, with liability limits, deductibles, exclusions and tail coverage, not less protective than under the coverage in effect by GX immediately prior to the Effective
Date, or any more favorable coverage maintained by the Company thereafter. Notwithstanding the foregoing, the Company agrees that at all times it shall endeavor to maintain directors’ and officers’ liability insurance coverage of not less
than $30 million, covering indemnifiable claims that would otherwise have been covered under the coverage maintained by GX immediately prior to the Effective Date. 
  
 (k) Legal Fees. The Company shall reimburse Executive for reasonable legal fees and costs incurred in the
negotiation and preparation of this Agreement, up to a maximum of $25,000. 
  
 (l) Counterparts. This Agreement may be executed in counterparts. Execution by facsimile shall be binding on the parties. 
  
 (m) Mitigation and Offset. Executive shall not be required to mitigate amounts payable under this Agreement by
seeking other employment or otherwise, and there shall be no offset against amounts due Executive under this Agreement on account of subsequent employment. 
  
 (n) Survival. All obligations of the Company to make payments under any Compensation Agreement shall survive any termination of
Executive’s employment or this Agreement until such obligations have been discharged in full. 
  

 12 

 IN WITNESS WHEREOF, the Company and Executive have executed this Agreement as of the day and year first
above written. 
  

			
	Global Crossing Limited
		
	By:	 	     /s/    John B. McShane
  

	Name:    John McShane
	Title:      Attorney-in-Fact
	
	AGREED AND ACCEPTED:
	
	/s/ John J. Legere

	        John J. Legere

  
  

 13 

 Exhibit A 
 Terms of Stock Options 
  
 Option
Term: Ten (10) years. 
  
 Vesting Schedule: One-third (1/3) of the
total covered shares shall vest and become exercisable on each of the first, second and third anniversaries of the date of grant. 
  
 Termination of Employment: Vesting and exercise rights following any termination of employment shall be as set forth in Section 6 of the Employment Agreement to
which this Exhibit is attached. The applicable stock option agreement may either (i) incorporate by reference the provisions of Section 6 of the Employment Agreement, or (ii) contain provisions that correspond to the rights granted pursuant to
Section 6 of the Employment Agreement. 
  
 Registration Statements. As soon
as practicable after the date of grant (but in no event later than the applicable vesting or exercise dates with respect to the options), the Company shall file and keep effective a registration statement on Form S-8 (or other applicable
registration statement) with respect to the stock options, except to the extent covered by a comparable registration statement under the Company’s stock incentive plans.

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