Document:

Agreement between Con Edison and John D. McMahon

 Exhibit 10.1 
  
 December 23, 2005 
  
 Mr. John D. McMahon 
 c/o Consolidated Edison, Inc. 
 4 Irving Place 
 New York, New York 10003 
  
 Dear John: 
  
 The Board of Directors (the “Board”) of Consolidated Edison, Inc. (the “Company”) is delighted that you will be
continuing in your position as President and Chief Executive Officer (“CEO”) of Orange and Rockland Utilities, Inc. (“O&R”). The following outlines certain of the terms and conditions of your continued
employment with the Company and O&R. 
  
 1. During the Term
(as defined below), you will be employed as the President and CEO of O&R, reporting to the CEO of the Company. In your capacity as President and CEO of O&R, you shall have the authorities and duties commensurate with that position. In such
capacity, you shall also have responsibility for regulatory services of the Company. You agree to devote your full attention and time and efforts during normal business hours to the business and affairs of the Company and to the performance of your
duties in accordance with the Company’s policies and procedures. You may (a) serve on corporate, civic or charitable boards or committees, (b) deliver lectures or fulfill speaking engagements and (c) manage personal investments,
so long as such activities do not interfere with the performance of your responsibilities as President and CEO of O&R and are in compliance with the Company’s policies and procedures. 
  
 2. Your base salary, annual incentive compensation and long-term incentive
compensation shall be determined by the Management Development and Compensation Committee of the Company on an annual basis. Effective September 1, 2005, your base salary shall be $635,000.00. Your target annual bonus for 2005 under the Orange
and Rockland Annual Team Incentive Plan, or other applicable bonus plan of the Company, shall be 80% of your base salary, pro-rated for the period September 1, 2005 through December 31, 2005 (with you receiving a pro-rated bonus for the
period January 1, 2005 to August 31, 2005 based on your base salary and bonus percentage in effect prior to September 1, 2005). You shall also receive an award under the Company’s Long Term Incentive Plan
(“LTIP”), the terms and conditions of which shall be governed by the LTIP and an award agreement under the LTIP. You will also be eligible to participate in all of the Company’s plans, practices, policies and programs, and to
receive all fringe benefits and perquisites, generally available to senior executives of the Company on terms and conditions that are commensurate with your position as President and CEO of O&R. In the event 

 your employment is terminated by the Company without Cause (as defined below), or by you with or without Good Reason (as
defined below), and the treatment of any of your benefits or awards upon retirement is more favorable to you than would otherwise be the case based on the grounds for your termination of employment, you shall be entitled on a benefit by benefit
basis to such more favorable retirement treatment. 
  
 3. The
Company agrees that upon termination of your employment during the Term of this Agreement, you will be entitled to the following payments and benefits: 
  
 (a) In the event your employment is terminated by the Company other than for Cause (as defined in Exhibit A), or by you with Good
Reason (as defined in Exhibit A) during the period commencing six months prior to and ending twenty-four months following a Change in Control (as defined in the Severance Program (as defined below)), subject to your executing a written release
substantially in the form of Annex 1 to the Severance Program (as revised to provide that you are not releasing any rights of indemnification or to directors and officers liability insurance coverage or any amounts due hereunder upon a
termination), you shall be entitled to severance benefits under the Company’s Severance Program for Officers (the “Severance Program”), as in effect on the date hereof, provided, however, that in calculating the
amount of your payments and benefits (x) the number two shall be substituted for the number one in Sections III.A.1.a.(2), b., c. and d. of the Severance Program and (y) the number two shall be increased to three in
Section III.A.2 of the Severance Program. 
  
 (b) In the event your employment is terminated for Cause or you terminate your employment voluntarily (other than with Good Reason during the period commencing six months prior to and ending twenty-four months following a Change in
Control), you shall be entitled to your Base Compensation (as defined in the Severance Program) and any accrued vacation pay, in each case to the extent not previously paid and the Other Benefits (as defined under the Severance Program), but for
purposes of this Agreement also including any unpaid bonus for any completed prior fiscal year through the date of termination (unless the terms of such Other Benefits provide for forfeiture upon termination for Cause or termination for other than
Good Reason). 
  
 (c) In the event your
employment terminates by reason of your death, your estate or beneficiary shall be paid, as applicable, in a lump sum in cash within 30 days of the date of termination, the Accrued Obligations (as defined in the Severance Program) and the Other
Benefits. 
  
 (d) In the event your employment
terminates by reason of your Disability (as defined in Exhibit A) or mandatory retirement, you shall be entitled to receive all Accrued Obligations in a lump sum cash within 30 days of the date of termination of your employment and the Other
Benefits in accordance with their terms. 
  
 Except to the extent
otherwise provided in this Agreement, the terms of the Severance Program as in effect on the date hereof shall govern your rights on termination of your employment during the Term. The Company further agrees that notwithstanding any amendments to
the Severance Program, if your employment terminates during the Term, you shall be entitled to 
  

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 the payments and benefits under the Severance Program as in effect on the date hereof, and as modified pursuant to the
terms of this Agreement. Notwithstanding anything in the Severance Program to the contrary, the definitions of “Cause”, “Good Reason” and “Disability” and the notice and cure provisions set forth in Appendix A shall
govern your rights upon termination of your employment during the Term. The Company also agrees that in the event of a termination of your employment by the Company other than for Cause, all amounts mandatorily deferred under the Company’s
Executive Incentive Plan shall be immediately vested and nonforfeitable and paid to you in accordance with your payment election then in effect. 
  
 4. The Company agrees that upon termination of your employment, the equity-based awards granted to you prior to or during the Term under the LTIP or other
equity-based compensation plan of the Company shall be treated as follows (whether such termination occurs during or after the Term): 
  
 (a) In the event that the Company terminates your employment without Cause, or you terminate your employment for Good Reason during the period commencing
six months prior to and ending twenty-four months following a Change in Control, (i) any performance-based equity awards granted to you prior to or during the Term shall (A) fully vest and (B) be paid out within 30 days of the date
your employment terminates as if targeted performance had been achieved through the applicable performance period; and (ii) any non-performance-based equity awards granted to you prior to or during the Term, including restricted stock awards,
restricted stock unit awards, options and stock appreciation rights, shall fully vest and (A) be paid out within 30 days of the date your employment terminates or (B) (x) in the case of options granted to you prior to April 19,
2001 be exercisable until the third anniversary of the date your employment terminates and (y) in the case of options or stock appreciation rights granted to you after April 19, 2001, be exercisable until the tenth anniversary of the grant
date, provided, however, that in no event shall such options or stock appreciation rights be exercisable beyond the expiration of their respective terms. 
  
 (b) In the event that you terminate your employment voluntarily for any reason more than six months prior to a Change in
Control, or without Good Reason during the period commencing six months prior to and ending twenty-four months following a Change in Control, or your employment terminates as a result of your death or Disability, (i) any performance-based
equity awards granted to you shall (A) vest pro-rata based on the number of full months that have elapsed from the date of grant of such award to the date of your termination of employment; (B) be payable at the time such award would
otherwise have been paid had your employment not terminated; and (C) be based on the Company’s achievement of applicable performance criteria through the end of the applicable performance period, (ii) any non-performance-based
restricted stock or restricted stock unit awards granted to you prior to or during the Term shall vest pro-rata based on the number of full months that have elapsed from the date of grant of such award to the date of termination of your employment
and be paid out within 30 days of the date your employment terminates, and (iii)(A) in the case of options granted prior to April 19, 2001, such options shall be exercisable until the third anniversary of the date your employment
terminates and (B) in the case of options or stock appreciation rights granted after April 19, 2001, such options or stock appreciation rights shall be exercisable until the tenth anniversary of the grant date, provided,
however, that in no event shall such options or stock appreciation rights be exercisable beyond the expiration of their respective terms. 
  

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 (c) In the event your employment is terminated by the Company for Cause, any equity awards granted to you
prior to or during the Term under the LTIP or other equity based compensation plan of the Company shall be forfeited in their entirety (regardless of whether such awards are vested). 
  
 5. Notwithstanding anything in the Severance Program to the contrary, if any payments or benefits made to you under this
Agreement or otherwise constitute “parachute” payments within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”), you shall be entitled to the additional payments and benefits
set forth in Appendix B. 
  
 6. You understand that you hold in a
fiduciary capacity for the benefit of the Company all confidential information, knowledge or data (defined below) relating to the Company or any of its affiliates or subsidiaries, and their respective businesses, which you obtain during your
employment by the Company or any of its affiliated companies and which shall not be or become public knowledge (other than by acts by you or your representatives in violation of this Agreement). Upon termination of your employment, you shall return
to the Company, all Company information. After termination of your employment, you will not without the prior written consent of the Company or as may otherwise be required by law or legal process, communicate or divulge any such information,
knowledge or data to anyone other than the Company and those designated by it, except (x) otherwise publicly available information, (y) as may be necessary to enforce your rights under this Agreement or necessary to defend yourself against
a claim asserted directly or indirectly by the Company or its affiliates or (z) in compliance with legal process or governmental inquiry. As used herein, the term “confidential information, knowledge or data” means all trade secrets,
proprietary and confidential business information belonging to, used by, or in the possession of the Company or any of its affiliates and subsidiaries, including but not limited to information, knowledge or data related to business strategies, plans
and financial information, mergers, acquisitions or consolidations, purchase or sale of property, leasing, pricing, sales programs or tactics, actual or past sellers, purchasers, lessees, lessors or customers, those with whom the Company or its
affiliates and subsidiaries has begun negotiations for new business, costs, employee compensation, marketing and development plans, inventions and technology, whether such confidential information, knowledge or data is oral, written or
electronically recorded or stored, except information in the public domain, information known by you prior to employment with the Company and information received by you from sources other than the Company or its affiliates or subsidiaries, without
obligation of confidentiality, and your rolodex and similar address books. 
  
 7. The confidential knowledge, information and data, as defined in the previous paragraph, gained in the performance of your duties hereunder may be valuable to those who are now, or might become, competitors of the
Company or its affiliates and subsidiaries. Accordingly, you agree that you will not, for the period of two years from the date of termination of your employment for any reason, directly own, manage, operate, join, control, become employed by,
consult to or participate in the ownership, management, or control of any company that competes with Consolidated Edison Company of New York, Inc., Orange and Rockland Utilities, Inc. or other regulated business of the Company, or other than with
the consent of the Company which shall not be unreasonably withheld, any other material business of the Company; provided that the foregoing shall not prevent you from owning less than two percent (2%) of the stock of any publicly-traded
company. Further, you agree that for a period of two years following 
  

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 the date of termination of your employment, you will not, directly or indirectly, solicit or hire, or encourage the
solicitation or hiring of any person who was a managerial or higher level employee of the Company at any time during the term of your employment by the Company by any employer other than the Company for any position as an employee, independent
contractor, consultant or otherwise. The foregoing agreement in the immediately preceding sentence shall not apply to any person after 6 months have elapsed subsequent to the date on which such person’s employment by the Company has terminated.
You shall also not be prohibited from serving as a reference for an employee with regard to an entity with which you are not affiliated or generally advertising for employees, provided such advertising is not targeted at employees of the Company. In
the case of any material violations of any activity prohibited under this paragraph 7, you shall (a) not be entitled to post-employment payments under the Severance Program or this Agreement; (b) forfeit any unvested equity awards
granted to you under the LTIP; and (c) return or repay to the Company a portion of any equity awards that vested or paid out during the two year period immediately preceding such prohibited activity which is equal to the amount of such equity
award that vested or paid out within such two year period (valued as of the date such equity award vested or paid out) times a fraction, the numerator of which is the number of months from the commencement of such activity to the date that is
twenty-four months after the date of termination of your employment, and the denominator of which is twenty-four. 
  
 8. In the event of a breach by you of any of the agreements set forth in paragraphs 6 or 7 above, it is agreed that the Company shall suffer
irreparable harm for which money damages are not an adequate remedy, and that, in the event of such breach, the Company shall be entitled to obtain an order of a court of competent jurisdiction for equitable relief from such breach, including, but
not limited to, temporary restraining orders and preliminary and/or permanent injunctions against the breach of such agreements by you. In the event that the Company should initiate any legal action for the breach or enforcement of any of the
provisions contained in paragraphs 6 or 7 and the Company does not prevail in such action, you shall be reimbursed for the full amount of any court costs, filing fees, and attorney’s fees which you reasonably incur in defending such
action, and any loss of income during the period of such litigation. 
  
 9. To the fullest extent permitted by applicable law, the Company shall (a) indemnify you as an officer or director of the Company or a trustee or fiduciary of an employee benefit plan of the Company against all liabilities and
reasonable expenses that you may incur in any threatened, pending, or completed action, suit or proceeding, whether civil, criminal or administrative, or investigative and whether formal or informal, because you are or were an officer or director of
the Company or a trustee or fiduciary of such employee benefit plan, and (b) pay for or reimburse your reasonable expenses incurred in the defense of any proceeding to which you are a party because you are or were an officer or director of the
Company or a trustee or fiduciary of such employee benefit plan and (c) if the Company maintains directors and officers liability insurance, to cover you under such insurance to the same extent as its other officers and directors. Your rights
under this paragraph 9 shall survive the termination of your employment by the Company. 
  

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 10. Except with respect to equitable relief provided for in paragraph 8, any dispute about the
validity, interpretation, effect or alleged violation of this Agreement shall be resolved by confidential binding arbitration to be held in New York, New York, in accordance with the Commercial Arbitration Rules of the American Arbitration
Association. Judgment upon the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereover. All costs and expenses incurred by the Company or you or your beneficiaries in connection with any such controversy or
dispute, including without limitation reasonable attorney’s fees, shall be borne by the Company as incurred, except that you shall be responsible for any such costs and expenses incurred in connection with any claim determined by the
arbitrator(s) to have been without reasonable basis or to have been brought in bad faith. You shall be entitled to interest at the applicable Federal rate provided for in Section 7872(f)(2)(A) of the Code, on any delayed payment which the
arbitrator(s) determines you are entitled to under this Agreement. 
  
 11. This Agreement is personal to you and without the prior written consent of the Company may not be assigned otherwise than by will or the laws of descent and distribution. This Agreement shall inure to the benefit of and be binding upon
and enforceable by your legal representatives. This Agreement shall inure to the benefit of and be binding upon and enforceable by the Company and its successors and assigns, provided that the Company may only assign this Agreement to a successor
satisfying the requirements of paragraph 12 below. 
  
 12. The
Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to assume expressly and agree to perform this Agreement in the
same manner and to the same extent that the Company would be required to perform it if no such succession had taken place in writing promptly delivered to you upon such assignment. 
  
 13. Miscellaneous. 
  
 (a) Term. The term of your employment under this Agreement shall commence on December 23, 2005 and shall continue until August 31, 2007.
The term shall be automatically extended without further action of either party for additional one-year periods, unless written notice of either party’s intention not to extend has been given to the other party at least six months prior to the
expiration of the term or any renewal thereof. 
  
 (b) No
Mitigation. Except as provided under paragraph 7, and except to the extent that a court under paragraph 8 or an arbitrator appointed under paragraph 10 shall determine to permit an offset in respect of your violation of
paragraphs 6 or 7, the Company’s obligation to make the payments provided for in this Agreement and otherwise to perform its obligations hereunder shall not be affected by any set-off, counterclaim, recoupment, defense or other claim,
right or action which the Company may have against you or others. In no event shall you be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to you under the provisions of this Agreement, and
except as provided in the Severance Program with respect to certain medical, prescription and dental benefits, such amounts shall not be reduced whether or not you obtain other employment. 
  

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 (c) Governing Law. This Agreement shall be governed by and construed in accordance with the laws
of the State of New York applicable to agreements executed and performed entirely therein. 
  
 (d) Notices. All notices and other communications hereunder shall be in writing and shall be given by hand delivery to the other party or by registered or certified mail, return receipt requested, postage
prepaid, addressed as follows: 
  

			
	     If to John McMahon:            
	  	4 Irving Place
	 	  	New York, NY 10003
		
	     If to the Company:            
	  	4 Irving Place
	 	  	New York, NY 10003,
	 	  	Attention: General Counsel

  
 or to such other
address as either party shall have furnished to the other in writing. 
  
 (e) Invalidity. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement. If any provision of this Agreement shall be held invalid
or unenforceable in part, the remaining portion of such provision, together with all other provisions of this Agreement, shall remain valid and enforceable and continue in full force and effect to the fullest extent consistent with law. 

 
 (f) Tax Withholding. Notwithstanding any other provision of this
Agreement, the Company may withhold from any amounts payable under this Agreement such Federal, state, local or foreign taxes as shall be required to be withheld pursuant to any applicable law or regulation. 
  
 (g) Failure to Assert Rights. The Company’s or your failure to
insist upon strict compliance with any provisions of, or to assert any right under, this Agreement shall not be deemed to be a waiver of such provision or right or of any other provision or right under this Agreement. 
  
 (h) Entire Agreement/Modification. This Agreement supersedes the
Agreement dated September 1, 2000 between you and the Company and represents the complete agreement between you and the Company relating to your employment and termination, except for your rights under plans, programs and grants. This Agreement
may not be altered or changed except by written agreement executed by the parties hereto or their respective successors or legal representatives. 
  
 (i) JOBS Act Compliance. In the event that you are considered a “Specified Employee” as defined in Section 409A of the Internal
Revenue Code of 1986, as amended and the regulations thereunder (the “Jobs Act”), and any payments to you under this Agreement (including pursuant to the Severance Program) are considered “deferred compensation” under the
Jobs Act and of a type requiring payments six months after the date of your separation from service (within the meaning of the Jobs Act), to the extent required by the Jobs Act such payment shall be delayed until six (6) months after the date
of your separation from service. If any provision of this Agreement would result in unintended or adverse tax consequences to you or would, contravene 
  

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 the regulations anticipated to be promulgated under the JOBS Act or other Department of Treasury guidance, the parties
shall reform this Agreement or any provisions hereof to maintain to the maximum extent practicable the original purpose of the provision without violating the provisions of the JOBS Act or creating unintended or adverse tax consequences to you.

  
 Please confirm your acceptance of the foregoing by signing and
returning a copy of this letter to the undersigned no later than December 31, 2005. This Agreement shall not be effective until you execute and deliver a copy of it to the Company. 
  

			
	Yours sincerely,
	
	CONSOLIDATED EDISON, INC.
		
	 By:
	 	 /s/ Kevin Burke

  
 Agreed and accepted: 
  

	
	 /s/ John D. McMahon

	John D. McMahon
	December 23, 2005

  

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 Appendix A 
  
 Definitions 
  
 “Cause” means (i) your willful and continued failure to substantially perform your duties as President and CEO of O&R; or (ii) your
conviction of a felony or entering of a plea of nolo contendere to a felony, in either case having a significant adverse effect on the business and affairs of the Company; or (iii) a finding by a regulatory or judicial body that has
relevant jurisdiction or the entering into of a consent decree or a plea of nolo contendere to a violation by you of the requirements of the Sarbanes-Oxley Act of 2002, or with regard to the Company, other Federal or state securities law,
rule or regulation. No act or failure to act shall be considered “willful” unless it is done, or omitted to be done, by you in bad faith or without reasonable belief that your action or omission was in the best interests of the Company.
Any act or failure to act that is based upon authority given pursuant to a resolution duly adopted by the Board, or the advice of counsel for the Company, shall be conclusively presumed to be done, or omitted to be done, by you in good faith and in
the best interests of the Company. 
  
 A termination of your employment for Cause
shall be effected in accordance with the following procedures. The Company shall give you written notice (“Notice of Termination for Cause”), of its intention to terminate your employment for Cause, setting forth in reasonable
detail the specific conduct that it considers to constitute Cause. Such notice shall be given no later than 60 days after the Company has actual knowledge of the act or failure (or the last in a series of acts or failures) that the Company alleges
to constitute Cause. You shall have 30 days after receiving the Notice of Termination for Cause in which to cure such act or failure, to the extent such cure is possible. If you fail to cure such act or failure to the reasonable satisfaction of the
Board, the Company shall give you a second written notice stating the date, time and place of a special meeting of the Board called and held specifically for the purpose of considering your termination for Cause, which special meeting shall take
place not less than ten and not more than twenty business days after you receive notice thereof. You shall have the opportunity, together with counsel, to be heard at the special meeting of the Board. Your termination for Cause shall be effective
when and if a resolution is duly adopted at such special meeting by the affirmative vote of a majority of the Board stating that in the good faith opinion of the Board, you are guilty of the conduct described in the Notice of Termination for Cause
and that such conduct constitutes Cause as defined above. 
  
 “Disability” means that (A) you are (i) unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be
expected to last for a continuous period of not less than 12 months or (ii) by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period
of not less than 12 months, receiving income replacement benefits for a period of not less than three months under an accident and health plan covering employees of the Company and (B) you have not been able to perform your material duties
and responsibilities for the period specified within the definition of “Disability” in the Severance Program. 
  
 “Good Reason” means following a Change in Control (or within six months prior to, and in connection with or in contemplation of, a Change in Control,
provided the Change in Control in fact occurs), (i) any adverse change in your titles, authority, duties, responsibilities and reporting 
  

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 lines in effect as of the date six months prior to the Change in Control, or the assignment to you of any duties or
responsibilities inconsistent in any respect with those customarily associated with the position you held as of the date six months prior to the Change in Control; or (ii) the appointment, without your consent, of any person other than you to
the position you held as of the date six months prior to the Change in Control or any other position or title conferring similar status or authority; or (iii) any reduction in your salary, target annual bonus, target long-term incentive or
retirement benefit as in effect as of the date six months prior to the Change in Control; or (iv) any requirement by the Company that your services be rendered primarily at an office or location that is more than 50 miles from your office or
location as of the date six months prior to the Change in Control; or (v) any purported termination of your employment for a reason or in a manner not expressly permitted by the Agreement; or (vi) any failure by a successor of the Company
to assume the Agreement; or (vii) any other material breach of the Agreement by the Company that either is not taken in good faith or, even if taken in good faith, is not remedied by the Company promptly after receipt of notice thereof from
you. 
  
 A termination of your employment for Good Reason shall be effectuated by
giving the Company written notice (“Notice of Good Reason”) of the Good Reason event, setting forth in reasonable detail the specific acts or omissions of the Company that constitute Good Reason and the specific provision(s) of this
Agreement on which you rely. Unless the Board determines otherwise, you must give the Company a Notice of Good Reason within 60 days after you have actual knowledge of the act or omission (or the last in a series of acts or omissions) that you
allege constitutes Good Reason, and the Company shall have 30 days from the receipt of such Notice of Good Reason to cure the conduct cited therein, provided that such conduct is not conduct that previously had to be cured by the Company as a result
of a Notice of Good Reason. You may terminate your employment for Good Reason upon further written notice given within thirty (30) days after the final day of such 30-day cure period, unless prior to the end of the initial 30 day period
the Company has cured the specific conduct asserted to constitute Good Reason to your reasonable satisfaction (unless the notice sets forth a later date (which date shall in no event be later than 30 days after the notice is given)). 
  

 A-2 

 Appendix B 
  
 Tax Gross-Up Provision 
  
 (a) In the event it shall be determined that any payment or distribution by the Company to or for your benefit (whether paid or payable or distributed or
distributable pursuant to the terms of this Agreement or otherwise, but determined without regard to any additional payments required under this Appendix B (a “Payment”) would be subject to the excise tax imposed by
Section 4999 of the Code or any interest or penalties are incurred by you with respect to such excise tax (such excise tax, together with any such interest and penalties, are hereinafter collectively referred to as the “Excise
Tax”), then you shall be entitled to receive an additional payment (a “Gross-Up Payment”) in an amount such that after payment by you of all taxes (including any interest or penalties imposed with respect to such taxes),
including, without limitation, any income and employment taxes (and any interest and penalties imposed with respect thereto) and Excise Tax imposed upon the Gross-Up Payment, you shall retain an amount of the Gross-Up Payment equal to the Excise Tax
imposed upon the Payments. 
  
 (b) Subject to the provisions of
subsection (c), all determinations required to be made under this Appendix B, 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 such determination,
shall be made by the Company’s independent auditors or such other certified public accounting firm as may be jointly designated you and by the Company (the “Accounting Firm”), which shall provide detailed supporting
calculations both to the Company and to you. All fees and expenses of the Accounting Firm shall be borne solely by the Company. Any Gross-Up Payment, as determined pursuant to this Appendix B, shall be paid by the Company to you within 15 days of
the receipt of the Accounting Firm’s determination. Any determination by the Accounting Firm shall be binding upon the Company and you. As a result of the uncertainty in the application of Section 4999 of the Code at the time of the
initial determination by the Accounting Firm hereunder, it is possible that Gross-Up Payments which will not have been made by the Company should have been made (“Underpayment”), consistent with the calculations required to be made
hereunder. In the event that the Company exhausts its remedies pursuant to Appendix B, and you thereafter are required to make a payment of any Excise Tax, the Accounting Firm shall determine the amount of the Underpayment that has occurred and any
such Underpayment shall be promptly paid by the Company to you or for your benefit. 
  
 (c) You shall notify the Company in writing of any claim by the Internal Revenue Service that, if successful, would require the payment by the Company of the Gross-Up Payment. Such notification shall be given as soon
as practicable but no later than ten business days after you are informed in writing of such claim and shall apprise the Company of the nature of such claim and the date on which such claim is requested to be paid. You shall not pay such claim prior
to the expiration of the 30-day period following the date on which you give such notice to the Company (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If the Company notifies you in writing
prior to the expiration of such period that it desires to contest such claim, you shall: 
  
 (i) give the Company any information reasonably requested by the Company relating to such claim, 
  

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 (ii) take such action in connection with contesting such claim as the Company shall reasonably request in
writing from time to time, including, without limitation, accepting legal representation with respect to such claim by an attorney reasonably selected by the Company, 
  
 (iii) cooperate with the Company in good faith in order effectively to contest such claim, and 
  
 (iv) permit the Company to participate in any proceedings relating to such
claim; 
  
 provided however, that the Company shall bear and pay
directly all costs and expenses (including additional interest and penalties) incurred in connection with such contest and shall indemnify and hold you harmless, on an after-tax basis, for any Excise Tax or income tax (including interest and
penalties with respect thereto) imposed as a result of such representation and payment of costs and expenses. Without limitation on the foregoing provisions of this Appendix B, the Company shall control all proceedings taken in connection with such
contest and, at its sole option, may pursue or forgo any and all administrative appeals, proceedings, hearings and conferences with the taxing authority in respect of such claim and may, at its sole option, either direct you to pay the tax claimed
and sue for a refund or contest the claim in any permissible manner, and you agree to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the
Company shall determine; provided however, that if the Company directs you to pay such claim and sue for a refund, the Company shall advance the amount of such payment to you, on an interest-free basis and shall indemnify and hold you
harmless, on an after-tax basis, from any Excise Tax or income tax (including interest or penalties with respect thereto) imposed with respect to such advance or with respect to any imputed income with respect to such advance; and further provided
that any extension of the statute of limitations relating to payment of taxes for your taxable year with respect to which such contested amount is claimed to be due is limited solely to such contested amount. Furthermore, the Company’s control
of the contest shall be limited to issues with respect to which a Gross-Up Payment would be payable hereunder and you shall be entitled to settle or contest, as the case may be, any other issue raised by the Internal Revenue Service or any other
taxing authority. 
  
 (d) If, after the receipt by you of an
amount advanced by the Company pursuant to Appendix B, you become entitled to receive any refund with respect to such claim, you shall (subject to the Company’s complying with the requirements of Appendix B), promptly pay to the Company the
amount of such refund (together with any interest paid or credited thereon after taxes applicable thereto). If, after the receipt by you of an amount advanced by the Company pursuant to this Appendix B, a determination is made that you shall not be
entitled to any refund with respect to such claim and the Company does not notify you in writing of its intent to contest such denial of refund prior to the expiration of 30 days after such determination, then such advance shall be forgiven and
shall not be required to be repaid and the amount of such advance shall offset, to the extent thereof, the amount of Gross-Up Payment required to be paid. 
  

 B-2Seventh Amendment to Master Wholesale Pricing & Services Coordinating Agreement

 Exhibit 10.1 
  
 CONFIDENTIAL 
  
 SEVENTH AMENDMENT TO 
 MASTER
WHOLESALE PRICING AND SERVICES COORDINATING AGREEMENT 
  
 THIS SEVENTH
AMENDMENT TO THE MASTER WHOLESALE PRICING AND SERVICES COORDINATING AGREEMENT (this “Seventh Amendment”) dated December 23, 2005, effective as of January 1st, 2006 (the “Effective Date”) is made 
  
 BETWEEN: 
  
 TELEGLOBE CANADA ULC, an amalgamated unlimited liability company amalgamated under the laws of the Province of Nova Scotia, having an office at 1555 Carrie-Derick, Montreal, Quebec, Canada
(“Teleglobe”); 
  
 AND: 
  
 BELL CANADA, a Canadian corporation incorporated under the laws of Canada having an
office at 483 Bay Street, Floor 6N, Toronto, Ontario, Canada (“Bell Canada”); 
  
 (Teleglobe and Bell Canada being referred to herein collectively as the “Parties” and individually as a
“Party”); 
  
 RECITALS: 
  
 WHEREAS Teleglobe and Bell Canada have entered into a Master Wholesale Pricing and
Services Coordinating Agreement (the “Master Agreement”) dated January 1st 2001, as amended
effective April 1st, 2003 (the “First Amendment”) and subsequently amended by the Second,
Third, Fourth, Fifth, and Sixth Amendments (the Master Agreement as so amended being referred to herein as the “Agreement”), and 
  
 WHEREAS the Parties desire to amend the Agreement in accordance with the terms and conditions set forth herein; 
  
 NOW THEREFORE, THIS SEVENTH AMENDMENT WITNESSETH that in consideration of the
covenants and agreements hereinafter contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by each of the Parties hereto, the Parties hereto covenant and agree as follows: 

 

	1.	DEFINITIONS 

  
 Terms having initial capital letters and capitalized terms used, but not otherwise defined in this Seventh Amendment, including its recitals, shall have the respective meanings set out in the Agreement. Certain terms
having initial capital letters and capitalized terms used in this Seventh Amendment are defined in the context in which they appear and shall have the respective meanings there indicated, and such terms shall be deemed to be incorporated as defined
terms in the Agreement. 
  

	2.	BELL CANADA FLEX; TELEGLOBE RIGHT TO MATCH 

  

	2.1	Bell IP Transit Commitment. Section 5.2.1(a) of the First Amendment shall be deleted in its entirety and replaced with the following: 

  

	 	“(a)	IP Transit Service. Effective January 1, 2006, Bell Canada shall not be bound or restricted by any exclusivity obligations contained in the Agreement with respect to its
requirements for IP Transit services and shall be entitled to obtain IP Transit services from any Competing Provider, notwithstanding any provision to the contrary contained in the Agreement.” 

  

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	2.2	Bell IDDD Traffic Commitment. Section 5.2.1(b) of the First Amendment shall be deleted in its entirety and replaced with the following: 

  

	 	“(b)	IDDD Outbound Services. Effective January 1, 2006, notwithstanding any provision to the contrary contained in the Agreement, with respect to usage by Bell Canada’s
Wholesale Customers (“Wholesale IDDD Service”) or derived from Bell Canada’s retail pre-paid call card services (“Pre-paid IDDD Service”) or derived from usage by Bell Canada’s Retail Customers
(“Retail IDDD Service”), (collectively “IDDD Outbound Services”), Bell Canada shall not be bound or restricted by any exclusivity obligations contained in the Agreement and shall be entitled to obtain any such
services from any Competing Provider; provided that Teleglobe shall be entitled to exercise its Right to Match with respect to Bell Canada’s Pre-paid IDDD Service and Retail IDDD Service requirements in accordance with Section 4 of this
Seventh Amendment. For avoidance of doubt, should Bell Canada offer Retail IDDD VOIP services which are provisioned on a minute purchase and routed on a switch translation (least cost routing over multiple carriers) basis, then such services shall
be included in the respective IDDD Outbound Services based on the usage of such VOIP service as defined above.” 

  

	3.	TELEGLOBE ACCESS TO THE CANADIAN MARKET 

  

	3.1	Teleglobe IP Transit Service. 

  

	 	(a)	Section 5.1.2(a) of the First Amendment shall be deleted in its entirety and replaced with the following: 

  

	 	“(a)	IP Transit Service. Effective January 1, 2006, Teleglobe shall be entitled, directly or indirectly through the use of an Affiliate or any third party, to promote, market
and sell IP Transit Services in the Territory on a retail and wholesale basis, notwithstanding any provision to the contrary contained in the Agreement. Without limiting the foregoing, effective as of September 1, 2005, Teleglobe shall be
entitled to commence promoting and marketing its IP Transit Services to prospective wholesale customers in the Territory, provided that Teleglobe shall not enter into any contracts directly or indirectly through the use of an Affiliate or any third
party for the sale of IP Transit Service or implement or otherwise provision any IP Transit Service directly or indirectly through the use of an Affiliate or any third party to any such customers prior to January 1, 2006.”

  

	3.2	Teleglobe Voice Services. 

  

	 	(a)	Sections 5.1.2(b) and (c) of the First Amendment shall be deleted in their entirety and replaced with the following: 

  

	 	“(b)	IDDD Services. Effective January 1, 2006, Teleglobe shall be entitled directly or indirectly through the use of an Affiliate or any third party, to promote, market and
sell IDDD services in the Territory exclusively on a wholesale basis (“IDDD Services”), notwithstanding any provision to the contrary contained in the Agreement. Notwithstanding the foregoing, Teleglobe shall not directly or indirectly
through the use of an Affiliate or any third party, market, solicit or sell IDDD Services to the Excepted Bell Canada Customers, as specified in Section 1 of Appendix 1 attached hereto, without the prior written consent of Bell Canada.

  
  

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	 	(c)	Enhanced Voice Services. Effective January 1, 2006, Teleglobe shall be entitled, directly or indirectly through the use of an Affiliate or any third party, to promote,
market and sell its Enhanced Voice Services in the Territory exclusively on a wholesale basis, notwithstanding any provision to the contrary contained in the Agreement. For purposes hereof, “Enhanced Voice Services” shall mean
Teleglobe’s ITFS/UIFN, ITFS with SAC, Operator Handled (OH), Canada Direct, Home Country Direct and ISDN services.” 

  

	 	(b)	Bell Canada shall not, directly or indirectly through the use of an Affiliate or any third party resell Enhanced Voice Services without the prior written consent of Teleglobe, to be
given in Teleglobe’s sole discretion, with respect to each prospective Wholesale Customer opportunity for which Bell Canada seeks to resell such services on a wholesale basis, except as expressly provided below: 

  

	 	(1)	Bell Canada shall be entitled to continue to resell Teleglobe’s ISDN; 

  

	 	(2)	Bell Canada shall be entitled to continue to resell the Enhanced Voice Services to Aliant and Sask Tel., provided that Bell Canada shall not promote or encourage the resale of these
Enhanced Voice Services on a wholesale basis by Aliant or Sask Tel; and 

  

	 	(3)	Bell Canada shall be entitled to continue to resell the Enhanced Voice Services to MTS until the termination of its current contractual relationships with MTS for the provision of
such services and the establishment of direct contractual arrangements between Teleglobe and MTS for the provision of such Enhanced Voice Services but in no event later than December 31, 2006; provided that Bell Canada shall not knowingly
resell the Enhanced Voice Services to MTS when such services are either resold or distributed through the network formerly operated by the entity previously known as ‘Allstream’ and shall not expand the volume or type of Enhanced Voice
Services currently being resold to MTS; 

  
 For
greater certainty nothing herein shall be construed as limiting the rights of Bell Canada to promote market and sell Enhanced Voice Services to Retail Customers. 
  

	 	(c)	Subject to the provisions below, with effect from January 1, 2006, Bell Canada shall assign and transfer to Teleglobe all of Bell Canada’s rights and obligations under all
contracts for the provision of Enhanced Voice Services to any Wholesale Customers to which Bell Canada is currently reselling such Enhanced Voice Services (the “EVS Contracts”): 

  

	 	(1)	Bell Canada will not be required to assign EVS Contracts associated with Wholesale Customers identified in sub-clauses (b)(1), b(2), and b(3) above; 

  

	 	(2)	to the extent that any EVS Contract may not be properly assigned or transferred without the consent of the Wholesale Customer, or if the assignment without consent or the attempted
assignment without consent would constitute a violation or breach thereof, Bell Canada will use all commercially reasonable efforts to obtain any such consents and Teleglobe will cooperate with Bell Canada in such respect; 

 

	 	(3)	to the extent that the consents described in sub-clause (c)(2) above are not obtained: 

  

	 	(i)	Bell Canada will not exercise any of its rights to renew any such EVS Contract; 

  

	 	(ii)	Teleglobe will no longer be bound by MFSP Pricing for Enhanced Voice Services usage applicable to the EVS Contracts until the termination date of the EVS Contract; and

  

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	 	(iii)	Bell Canada will be entitled to apply no more than a 5.5% mark-up on rates provided by Teleglobe pursuant to sub-clause (c)(3)(ii) until the termination date of the EVS Contract;

  

	 	(4)	Under no circumstances shall Teleglobe act in such a way as to put Bell Canada in breach of its obligations under the terms and conditions of the EVS Contracts; provided that this
clause shall not be construed to preclude Teleglobe from adjusting its pricing for Enhanced Voice Service usage as contemplated in Clause (c)(3) above for the Designated EVS Accounts as specified in Section 2 of Appendix 1 attached hereto.

  

	 	(5)	Subject to the limitations and liability provisions under the Agreement, Bell Canada shall remain liable under any EVS Contract which is assigned to Teleglobe for all of Bell
Canada’s obligations and liabilities which accrued prior to the effective date of the assignment and shall indemnify and hold Teleglobe harmless from any such obligations and liabilities; 

  

	 	(6)	Subject to the limitations and liability provisions under the Agreement, Teleglobe covenants that it will, as of the applicable effective date of assignment of any EVS Contract, and
all times thereafter, indemnify Bell Canada and save it harmless from and against all costs, charges, and damages that Bell Canada shall, at any time, sustain or become liable to, for, or on account of any action or proceedings that may be brought
against Bell Canada in connection with the EVS Contracts as a result of Teleglobe’s failure to fulfill any of its obligations thereunder following the applicable effective date of assignment. 

  

	3.3	For the avoidance of doubt, from January 1, 2006, the Agreement, as amended hereby, shall not restrict the sale by Teleglobe of any of its Services on a wholesale basis except
with respect to the sale of its IDDD Services to the Excepted Bell Canada Customers as provided in Section 3.2 (a) above. 

  
 For the avoidance of doubt, from January 1, 2006, the Agreement, as amended hereby, shall not restrict Bell Canada, in its sole discretion, from
acquiring ISDN service from any carrier Bell Canada so chooses. 
  

	4.	THE RIGHT TO MATCH 

  

	4.1	Notwithstanding any terms and conditions under the Agreement, effective 1 January, 2006, Section 7 of the First Amendment shall not apply to Bell Canada’s IDDD
Outbound Services and instead Bell Canada shall provide Teleglobe, during each Pricing Period, with an opportunity to fulfill Bell Canada’s requirements for Retail IDDD Service and Pre-paid IDDD Service for all Pricing Destinations, as follows:

  

	 	(a)	For the purpose of this Section 4.1 the following definitions shall apply: 

  

	 	(1)	“Base Minutes” means, with respect to each of the Retail IDDD Service and the Pre-paid IDDD Service, the total minute volumes of traffic sent by Bell Canada to all
carriers, including Teleglobe, during the Quarterly Period for which the RTM Commitment is determined; 

  

	 	(2)	“Declined Minutes” has the meaning given to such term in Section 4.1(n); 

  

	 	(3)	“Deemed RTM Minutes” has the meaning given to such term in Section 4.1(b); 

  

	 	(4)	“Matched Route” has the meaning given to such term in Section 4.1(f); 

  

	 	(5)	“Offered Minutes” has the meaning given to such term in Section 4.1(d); 

  
  

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 Seventh Amendment to Master Wholesale Pricing Services and Coordinating Agreement 

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	 	(6)	“Pricing Period” means each consecutive monthly period commencing on the 1st day or on the 16th day of each month from 1 January 2006 until
the termination of the Agreement. 

  

	 	(7)	“Pricing Destination” means, for any country (excluding the United States), any separately priced service charge, as quoted by Teleglobe, whether based on
geographic, or service level considerations, for terminating IDDD Outbound Service traffic, or any break-out or aggregation thereof as set forth in an RTM Offer; 

  

	 	(8)	“Quarterly Period” has the meaning given to such term in Section 4.1(b) below; 

  

	 	(9)	“Quality of Service Event” means the occurrence of circumstances specified in Section 4.1(j) below with respect to a specific Pricing Destination;

  

	 	(10)	“RTM Offer” has the meaning given to such term in Section 4.1(d) below; 

  

	 	(11)	“RTM Commitment” has the meaning given to such term in Section 4.1(b) below; 

  

	 	(12)	“Teleglobe IDDD Rates” has the meaning given to such term in Section 4.1(c) below; 

  

	 	(13)	“Voluntary Minutes” has the meaning given to such term in Section 4.1(e) below. 

  

	 	(b)	Bell Canada hereby agrees that, for each quarterly period specified in Section 3 of Appendix 1 attached hereto (a “Quarterly Period”), and determined
separately for each of its Retail IDDD Service and its Pre-paid IDDD Service, the Deemed RTM Minutes shall equal or exceed the RTM Commitment for such Quarterly Period. For purposes hereof, the “RTM Commitment” for each Quarterly
Period, determined separately for each of the Retail IDDD Service and the Pre-paid IDDD Service, shall equal the Base Minutes for such Quarterly Period times the percentage corresponding to such Quarterly Period as set out in Section 3 of
Appendix. 

  
 For purposes hereof, the
“Deemed RTM Minutes” for each Quarterly Period, determined separately for each of the Retail IDDD Service and the Pre-paid IDDD Service, shall equal the sum of: 
  

	 	(1)	the total number of minutes actually delivered to Teleglobe on Matched Routes pursuant to RTM Offers; 

  

	 	(2)	the total number of Voluntary Minutes actually delivered to Teleglobe; 

  

	 	(3)	any minutes counted as Deemed RTM Minutes pursuant to Sections 4.1(h), 4.1(k), 4.1(l) and 4.1(n) below; 

  

	 	(4)	any Excess Minutes from the immediately preceding Quarterly Period, as specified below; and 

  

	 	(5)	the product of (i) the sum of the Offered Minutes on unmatched routes for the relevant Quarterly Period, times (ii) the ratio of (x) the sum of the delivered minutes
included in item (1) above, plus the minutes included in item (3) above; to (y) the total number of Offered Minutes for the Matched Routes. 

  
 If for any Quarterly Period, the Deemed RTM Minutes are less than the RTM Commitment for either the Retail IDDD Service or
the Pre-paid IDDD Service, then in the immediately succeeding Quarterly Period (or during the 90-day period following the last Quarterly Period, if applicable), the amount of such short-fall shall be added to the applicable RTM Commitment for the
succeeding Quarterly Period. 
  
 If for any Quarterly Period, the
Deemed RTM Minutes exceed the RTM Commitment for either the Retail IDDD Service or the Pre-paid IDDD Service, then the amount of such excess minutes (the “Excess Minutes”) shall be included in the Deemed RTM Minutes for such Service
in the immediately succeeding Quarterly Period, as provided above. 
  
  

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 Seventh Amendment to Master Wholesale Pricing Services and Coordinating Agreement 

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	 	(c)	Not later than seven (7) Business Days prior to the start of each Pricing Period, Teleglobe shall deliver to Bell Canada the applicable Teleglobe IDDD rate sheet (the
“Teleglobe IDDD Rates”) for its Pricing Destinations for such Pricing Period. 

  

	 	(d)	Not later than five (5) Business Days prior to the start of each Pricing Period, Bell Canada shall deliver to Teleglobe a right to match opportunity (the “RTM
Offer”) for each of its Retail IDDD Service and its Pre-paid IDDD Service for such Pricing Period with respect to the Pricing Destinations included in such Pricing Period. Each RTM Offer shall be consistent with the requirements of
Section 4.1(i) below and shall include the following information with respect to each Pricing Destination included in such RTM Offer: 

  

	 	1)	the forecasted minutes of traffic for the relevant Pricing Period (the “Offered Minutes”); 

  

	 	2)	the rate per minute of traffic which Teleglobe is required to match; and 

  

	 	3)	the ASR which Teleglobe is required to match. 

  

	 	(e)	Simultaneously with submitting each RTM Offer to Teleglobe, Bell Canada shall also notify Teleglobe of the estimated minutes of Retail IDDD Service and of Pre-paid IDDD Service
traffic that it intends to send voluntarily (in addition to its Offered Minutes) to Teleglobe for termination during the relevant Pricing Period, based on the applicable Teleglobe IDDD Rates (the “Voluntary Minutes”).

  

	 	(f)	Not later than 9:00 AM Eastern Time one (1) Business Day prior to the start of each Pricing Period (or sooner if Teleglobe is able to do so), Teleglobe shall notify Bell Canada
as to which Pricing Destination in each RTM Offer for which Teleglobe has exercised, in its sole discretion, its Right to Match, by returning the RTM Offer and clearly identifying thereon which Pricing Destination(s) Teleglobe has elected to match
the specified rate and ASR (a “Matched Route”). For each Matched Route, Teleglobe must have a bona fide expectation of meeting quality expectations and sufficient capacity to receive and route the Offered Minutes. For each Matched
Route, Teleglobe shall also specify the applicable Teleglobe service level (eg, VTS Priority, VTS Standard or VTS Economy) which will apply to the Bell Canada traffic to be sent on such Matched Route. If (i) the RTM Offer specifies a rate per
minute for a particular Pricing Destination in excess of the rate quoted in the applicable Teleglobe IDDD Rates, and (ii) Bell Canada had sent Voluntary Minutes to such Pricing Destination in the immediately preceding Pricing Period, then
Teleglobe shall not exercise its Right to Match for such Pricing Destination without Bell Canada’s consent which will not be unreasonably withheld. If Bell Canada’s consent is withheld, then Bell Canada must continue to send the Voluntary
Minutes traffic to the Pricing Destination in the relevant Pricing Period. 

  

	 	(g)	Subject to Section 4.1(h) and (j) below, upon the commencement of each Pricing Period, Bell Canada shall route to Teleglobe its Offered Minutes of Retail IDDD Service and
Pre-paid IDDD Service traffic for each Matched Route for such Pricing Period as specified pursuant to Clause 4.1(f) above. 

  

	 	(h)	Teleglobe shall have the right at any time to increase its rate for any Pricing Destination and for any service level, regardless of whether it is on a Matched Route, upon giving
Bell Canada at least five (5) Business Days’ prior written notice of such rate increase; provided that no sooner than two (2) Business Days prior to the effective date of any such rate increase on a Matched Route, Bell Canada shall
have right to re-route its traffic on such Matched Route away from Teleglobe for the remainder of the current Pricing Period. In the event of such re-routing, the Deemed RTM Minutes for such Pricing Period shall include the number of minutes equal
to the lesser of (i) the re-routed minutes actually delivered by Bell Canada to the relevant Pricing Destination in such Pricing Period, and (ii) the difference between the Offered Minutes for such Pricing Destination and the number of
Offered Minutes completed by Teleglobe to such Pricing Destination in such Pricing Period. 

  
  

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 Seventh Amendment to Master Wholesale Pricing Services and Coordinating Agreement 

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	 	(i)	Bell Canada shall satisfy the following criteria with respect to each RTM Offer submitted to Teleglobe: 

  

	 	(1)	Each rate per minute specified in the RTM Offer must be based on (i) an actual quotation received from an individual competitive carrier (the “Competitive
Carrier”) (and not an average of various carriers’ offers) for offering comparable service for the entire duration of the relevant Pricing Period, or (ii) the actual average cost per minute incurred in sending traffic to a
Competitive Carrier in the first two (2) weeks of the preceding Pricing Period. In either case, the corresponding ASR target specified in the RTM Offer must have been achieved by same Competitive Carrier for traffic delivered to it by Bell
Canada in the immediately preceding Pricing Period; 

  

	 	(2)	Bell Canada must intend to route its forecasted traffic to the relevant Competitive Carrier(s), and in the event that Teleglobe declines to match the RTM Offer for a given Pricing
Destination, Bell Canada shall use reasonable efforts to route its traffic to such Pricing Destination to such Competitive Carrier(s); provided that if Bell Canada becomes competitively disadvantaged by routing its traffic to such Competitive
Carrier, Bell Canada will be allowed to re-route such traffic away from such Competitive Carrier for the remainder of such Pricing Period; and 

  

	 	(3)	If Bell has the intention of routing such traffic through multiple Competitive Carriers, Bell must separate each Competitive Carrier offer for such Pricing Destination in its RTM
Offer, allowing Teleglobe to match each such offer. 

  

	 	(j)	Bell Canada may re-route any of the Offered Minutes or Voluntary Minutes to any Pricing Destination away from Teleglobe for the remainder of the then current Pricing Period, if
during such Pricing Period the following requirements are satisfied (a “Quality of Service Event”): 

  

	 	(1)	Teleglobe’s actual ASR is (x) at least fifteen percent (15%) less than the ASR specified in the RTM Offer for any period of three (3) consecutive days (eg., the
RTM Offer specifies a 50% ASR, and Teleglobe delivers less than 42.5%), or at least forty percent (40%) less than the ASR specified in the RTM Offer for any 24-hour period; or (y) more than 5 percentage points below the specified ASR, on
average, for a particular Pricing Destination in a Pricing Period and such failure continues into the next succeeding Pricing Period; or (z) Teleglobe’s service quality is poor due to a non-ASR issue; 

  

	 	(2)	Bell Canada opens a trouble ticket with Teleglobe’s customer service department; 

  

	 	(3)	The quality of service issue must affect Teleglobe’s general ability to terminate traffic to a particular Pricing Destination; and 

  

	 	(4)	Teleglobe is unable to resolve the quality of service issue (x) with respect to the issue described in clause (1) (x) or (1) (z) above, by the end of the
Business Day following the day on which the trouble ticket is opened, or (y) with respect to the issue described in clause (1) (y) above, by the end of the second Business Day following the day on which the trouble ticket is opened.

  
 Single number issues may qualify as a Quality
of Service Event only if Teleglobe’s customer service department acknowledges that Teleglobe cannot terminate traffic to that particular number. If Teleglobe’s customer service department reports “No Trouble Found” with respect
to any trouble ticket, a Quality of Service Event will occur only if Bell Canada can reasonably document or demonstrate that a quality of service issue exists. In the event that either a single 
  
  

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 number issue does not qualify as a Quality of Service Event or that Bell Canada fails to respond to a “No Trouble
Found” response with adequate documentation or demonstration of a problem, Bell Canada may still elect to re-route its traffic to the affected Pricing Destination, but such re-routed minutes shall not be counted as Deemed RTM Minutes.

  

	 	(k)	If, as a result of a Quality of Service Event, Bell Canada re-routes away from Teleglobe any Offered Minutes for a particular Matched Route, the remainder of the Offered Minutes to
such Matched Route (in excess of the number of minutes actually delivered to Teleglobe) will be included in calculation of Deemed RTM Minutes as provided in Section 4.1(b) above. If, as a result of a Quality of Service Event, Bell Canada
re-routes any Voluntary Minutes, such re-routed traffic will not be counted as Deemed RTM Minutes. 

  

	 	(l)	If, as a result of the occurrences of Quality of Service Events (excluding Quality of Service Events based on clause 4.1(j)(1)(x)) or Teleglobe rate increases on the same Matched
Route, pursuant to Section 4.1(h) above, in two consecutive Pricing Periods, Bell Canada re-routes any Offered Minutes away from Teleglobe for the affected Matched Route in those two consecutive Pricing Periods, Bell Canada will not be required
to provide an RTM Offer for such Pricing Destination in the next succeeding Pricing Period; however the Deemed RTM Minutes for such succeeding Pricing Period shall include the number of minutes equal to the lesser of (i) the minutes actually
delivered by Bell Canada to such Pricing Destination in such succeeding Pricing Period, and (ii) the amount of Offered Minutes included in Bell Canada’s RTM Offer for such Pricing Destination in the preceding Pricing Period.

  

	 	(m)	If Bell Canada re-routes any traffic as a result of a Quality of Service Event, Bell Canada shall notify its Teleglobe commercial contact of such re-routing within one Business Day
following the commencement of such re-routing. 

  

	 	(n)	If Bell Canada attempts to route traffic to Teleglobe on a Matched Route but it is declined by Teleglobe for any reason (the “Declined Minutes”) or if Teleglobe
directs Bell Canada to route traffic at a particular Teleglobe service level and the volume of such traffic exceeds the existing capacity for such service level, then Bell Canada can re-route the affected traffic to another carrier and the Deemed
RTM Minutes for such Pricing Period shall include the number of minutes equal to the lesser of (i) such re-routed minutes actually delivered by Bell Canada to the relevant Pricing Destination in such Pricing Period, and (ii) the difference
between the Offered Minutes for such Pricing Destination and the number of Offered Minutes completed by Teleglobe to such Pricing Destination in such Pricing Period. 

  

	 	(o)	Bell Canada shall provide Teleglobe with the following reports: 

  

	 	(1)	Within five (5) Business Days following the end of each Pricing Period, Bell Canada will report the number of Offered Minutes of traffic which it actually sent to Teleglobe on
each Matched Route during such Pricing Period for each of the Retail IDDD Service and Pre-paid IDDD Service; and 

  

	 	(2)	Within five (5) Business Days following the end of each Quarterly Period, Bell Canada will report: 

  

	 	(i)	the total number of IDDD minutes of traffic which it sent to all carriers, including Teleglobe, during such Quarterly Period for each of the Retail IDDD Service and the Pre-paid
IDDD Service; 

  

	 	(ii)	the break-down by Pricing Destination of the total Voluntary Minutes which it sent to Teleglobe during such Quarterly Period for each of the Retail IDDD Service and Pre-paid IDDD
Service; 

  
  

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	 	(iii)	the number of minutes of traffic on a Matched Route which it re-routed due to Quality of Service Events, broken-out by Pricing Destination for each of the Retail IDDD Service and
Pre-paid IDDD Service; and 

  

	 	(iv)	the number of Declined Minutes broken-out by Pricing Destination for each of the Retail IDDD Service and Pre-paid IDDD Service. 

  
 Bell Canada shall immediately notify Teleglobe if it subsequently discovers
any errors in any such reported results. 
  

	 	(p)	Within ten 10 Business Days following receipt of Bell Canada’s quarterly report, Teleglobe will prepare and submit to Bell Canada a report summarizing the volume of traffic
delivered to Teleglobe by Bell Canada pursuant to its RTM Offers and as Voluntary Minutes during the relevant Quarterly Period as compared to Bell Canada’s reported number of delivered IDDD minutes and its determination of the Deemed RTM
Minutes for such Quarterly Period. In the event of a discrepancy between the volumes of traffic reported by Bell Canada and the volumes reported by Teleglobe, within 10 Business Days following Teleglobe’s delivery of its report the Parties
shall meet and work in good faith to reconcile the reported volumes to reach a mutually agreed volume. 

  

	 	(q)	No later than 31 January of each of 2007 and 2008, Bell Canada shall certify to Teleglobe in a written certification signed by a Bell Canada officer that it has fully complied
with its obligations under this Section 4.1 for each of the four Quarterly Periods immediately preceding the date of such certification and that the information with respect to each such Quarterly Period provided in each of the reports
submitted to Teleglobe pursuant to Section 4.1(o) was accurate and complete. 

  

	4.2	As soon as possible following the signing of this Seventh Amendment, Bell Canada agrees to order and implement a second DS-3 for routing its IDDD Outbound Service traffic to
Teleglobe at the VTS Economy service level. Bell Canada further agrees not to decrease its existing capacity for routing its IDDD Outbound Service traffic to Teleglobe for any of Teleglobe’s service levels (including the second DS-3 referred to
above with respect to the VTS Economy service level) without Teleglobe’s prior written consent, which consent will not be unreasonably withheld if Bell Canada demonstrates that a reduction of capacity is justified based on a reduction in the
traffic volumes routed to a particular service level. If in any 2 consecutive Pricing Periods the traffic delivered by Bell Canada to Teleglobe at a particular service level exceeds the capacity available for such service level, Bell Canada shall
take immediate steps to order and implement additional capacity to carry such excess traffic. If Bell Canada fails to take steps to implement such additional capacity, then Bell Canada will not be allowed to claim subsequent Declined Minutes due to
insufficient capacity for that service level pursuant to Clause 4.1(n) above until such time sufficient capacity is realized due to either (i) capacity is eventually added or (ii) traffic volume declines such that the existing capacity is
sufficient. 

  

	4.3	For greater certainty, effective January 1, 2006, Section 7 of the Master Agreement shall only apply to Enhanced Voice Services, except ISDN. 

  

	4.4	Notwithstanding any terms and conditions of the Agreement, Teleglobe will not have RTM Offers following December 31, 2007, and after such date no restrictions or limitations
shall apply to Bell Canada in fulfilling its requirements for any telecommunications services through the use of any Competing Services, except as otherwise expressly provided in Section 4.1(b). 

 9 
  
 Seventh Amendment to Master Wholesale Pricing Services and Coordinating Agreement 

 CONFIDENTIAL 
  

	4.5	For greater certainty, and notwithstanding any terms and conditions set out in the Agreement, nothing herein shall be construed as limiting or restricting the rights of Bell Canada
to select Competing Services for the termination of its Wholesale IDDD Outbound Service traffic. 

  

	5.	INTERCONNECTION AND OPERATING AGREEMENT 

  

	5.1	Upon termination of the Master Agreement as amended, including as amended pursuant to this Seventh Amendment, the Services either Party provides to the other shall continue to be
provided pursuant to the terms and conditions of the Interconnection and Operating Agreement, dated January 1, 1999, until such time as the Interconnection and Operating Agreement is terminated in accordance with its terms and conditions. The
Parties further agree following the termination of the Interconnection and Operating Agreement that they shall continue to provide Services to each other with respect to Customers of each Party receiving Services as of the date of termination of the
Interconnection and Operating Agreement, unless such termination is the result of an Event of Default (as defined therein.) 

  

	6.	GENERAL 

  

	6.1	In the event of any conflict or inconsistency among or between the terms of this Seventh Amendment, the First Amendment, the other amendments to the Master Agreement, the Master
Agreement, and any Specific Services Agreement, the following shall control, in descending order of precedence: (1) this Seventh Amendment; (2) the other amendments, (3) the First Amendment; (4) the applicable Specific Services
Agreement; and (5) the Master Agreement. 

  

	6.2	No course of dealing or failure of either party to enforce any provision of this Seventh Amendment shall be construed as a waiver of such provisions or any other rights under this
Seventh Amendment. If any of the provisions of this Seventh Amendment shall be invalid or unenforceable, such invalidity or unenforceability shall not invalidate or render unenforceable this entire Seventh Amendment but rather this entire Seventh
Amendment shall be construed as if not containing the particular invalid or unenforceable provision or provisions and the rights and obligations of the parties shall be construed and enforced accordingly. 

  

	6.3	This Seventh Amendment may be executed in as many counterparts as may be required, each of which when delivered is an original but all of which taken together constitute one and the
same instrument. 

  
 IN WITNESS WHEREOF, each of the Parties
has executed and delivered this Seventh Amendment. 
  

							
	 TELEGLOBE CANADA ULC
	  	BELL CANADA
				
	 Per:
	  	 /S/ Gerald Porter Strong

	  	Per:	  	 /S/ Timothy D. Houghton

	 Name:
	  	 Gerald Porter Strong
	  	Name:	  	 Timothy D. Houghton

	 Title:
	  	 Chief Executive Officer
	  	Title:	  	 Senior Vice President & Chief

	 	  	 	  	 	  	 Sourcing Officer

 10 
  
 Seventh Amendment to Master Wholesale Pricing Services and Coordinating Agreement

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