Document:

Exhibit 4.6

 

FORM OF NOTE

 

THIS
SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR ANY STATE SECURITIES LAWS AND MAY NOT BE OFFERED OR SOLD UNLESS IT
HAS BEEN REGISTERED UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR UNLESS
AN EXEMPTION FROM REGISTRATION IS AVAILABLE.

 

TELEGLOBE
INTERNATIONAL HOLDINGS LTD

 

10% SENIOR NOTE DUE May 31, 2008

 

No.                                       Dated:  As of the Purchase Date (as defined in the
Note Purchase Agreement)

$[100,000,000]

 

FOR VALUE RECEIVED,
TELEGLOBE INTERNATIONAL HOLDINGS LTD, a
Bermuda company, (the “Company”), HEREBY PROMISES TO PAY to
[                                   ]
(the “Purchaser”) or its registered assigns the principal sum of [ONE
HUNDRED MILLION DOLLARS] ($[100,000,000]), or such lesser unpaid principal
amount as shall be outstanding hereunder, on May 31, 2008, together with
interest at the interest rates and payable at such times as are specified
below.

 

This Note is
one of a series of Notes due May 31, 2008 (collectively, the “Notes”)
originally issued or to be issued in an aggregate principal amount of up to
$[100,000,000] pursuant to the Note Purchase Agreement dated as of
                           ,
2004 (as amended or otherwise modified from time to time, the “Note Purchase
Agreement”; capitalized terms not otherwise defined herein have the same
meaning as specified in the Note Purchase Agreement), among the Company, the
parties designated therein as Subsidiary Guarantors, the respective purchasers
named therein, and Madeleine L.L.C. as Agent. 
The holder of this Note is entitled to the benefits of the Note Purchase
Agreement and may enforce the agreement of the Company therein in accordance
with the terms thereof, and may enforce the rights and remedies provided for
thereby or otherwise available in respect thereof in accordance with the terms
thereof.  Each holder of this Note will
be deemed, by its acceptance hereof to have made the representations set forth
in Section 6.1 and 6.2 of the Note Purchase Agreement and to have authorized
the Agent to act on its behalf in accordance with Section 20 of the Note
Purchase Agreement.

 

Interest on
the unpaid balance of the principal amount of this Note shall be computed on
the basis of a 360-day year for the actual number of days (including the first
day but excluding the last day) occurring in the period for which such interest
is payable and shall accrue at a rate per annum equal to 10% per annum from
(and including) the Purchase Date until the unpaid principal balance of this
Note shall be paid in full (whether by scheduled maturity or at a date fixed
for prepayment, redemption or repurchase or by declaration, demand or
otherwise), payable quarterly in arrears, on each March 30, June 30, September
30 and December 31, commencing on [•], 2004, and on the date on which the
unpaid principal balance of this Note shall be paid in full; provided, however,
that to the extent permitted by law, upon the occurrence and during the
continuation of an Event of Default, the principal of, and all accrued and
unpaid interest on, this Note shall bear interest at a rate per annum equal to
12% per annum 

 

 

from (and including) the date
such Event of Default occurred until such Event of Default is cured or waived
in writing in accordance with the terms of the Note Purchase Agreement.

 

Payments of
principal of, and interest and premium, if any, on this Note are payable in
lawful money of the United States of America at the place designated therefor
as set forth in Section 11 of the Note Purchase Agreement, or at such other
place as the Purchaser shall have designated by written notice to the Company
as provided in the Note Purchase Agreement. 
Whenever any payment under this Note shall be stated to be due on a day
other than a Business Day, such payment shall be made on the next succeeding
Business Day, and such extension of time shall in such case be included in the
computation of payment of interest.

 

Nothing
contained in this Note or the Note Purchase Agreement shall require the Company
to pay interest at a rate exceeding the maximum rate permitted by applicable
law.  If interest payable to the
Purchaser on any date would exceed the maximum permissible amount, it shall be
automatically reduced to such amount, and interest for any subsequent period,
to the extent less than that permitted by applicable law, shall, to that
extent, be increased by the amount of such reduction.

 

This Note is a
registered Note and, as provided in and subject to the terms of the Note
Purchase Agreement, is transferable only upon surrender of this Note for
registration of transfer or exchange (and, in the case of a surrender for
registration of transfer, duly endorsed or accompanied by a written instrument
of transfer, duly executed by the registered holder of this Note or his
attorney duly authorized in writing), at which time a new Note for a like
principal amount will be issued to, and registered in the name of, the
permitted transferee.  Reference in this
Note to a “holder” shall mean the person or entity in whose name this Note is
at the time registered in the register kept by the Company as provided in
Section 10.1 of the Note Purchase Agreement and, prior to the due presentment
for registration of transfer, the Company may treat such person or entity as
the owner of this Note for the purpose of receiving payment and for all other
purposes, and the Company will not be affected by any notice to the contrary.

 

The Company may be required to repurchase all or a portion this Note
upon the occurrence of the events and on the terms specified in Sections 7.3,
7.4 and 7.5 of the Note Purchase Agreement. 
This Note is also subject to optional prepayment, in whole or from time
to time in part, at the times and on the terms specified in Section 7.1 of the
Note Purchase Agreement.  Additionally,
this Note is subject to mandatory prepayment, at the times and on the terms
specified in Section 7.2 of the Note Purchase Agreement.

 

If an Event of Default shall occur and be continuing, the unpaid
balance of principal of this Note and any accrued and unpaid interest and other
amounts payable hereon may be declared or otherwise become due and payable in
the manner, at the price and with the effect provided in Section 9 of the Note
Purchase Agreement.

 

2

 

This Note
shall be governed by, and construed in accordance with, the
internal laws of the State of New York applicable to contracts made and to be
performed therein without consideration as to choice of law.

 

 

	
   

  	
  TELEGLOBE
  INTERNATIONAL HOLDINGS LTD

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

3Exhibit 4.7

 

REPURCHASE AGREEMENT

REPURCHASE AGREEMENT, dated as of March 26, 2004
(the “Agreement”), by and between Teleglobe Bermuda Holdings Ltd, a
Bermuda company (the “Company”), and Gemini Trust (the “Purchaser”).

WHEREAS, TLGB Acquisition LLC, a Delaware limited
liability company (“TLGB”) and the Purchaser are parties to certain
Share Purchase Agreements, dated as of October 1, 2003 (the “Share Purchase
Agreements”), whereby the Purchaser acquired the number of common shares,
par value $0.01 per share of Teleglobe International Holdings Ltd, a Bermuda
company (“TIHL”) (or any shares into which such common shares may be converted
or exchanged whether by merger or otherwise, the “Shares”) as is set
forth opposite the Purchaser’s name on Schedule A attached hereto (as
adjusted for the bonus issuance of shares that occurred on January 26, 2004);
and

WHEREAS, TLGB, the Company and the Purchaser have
agreed to eliminate transfer restrictions in the Share Purchase Agreements in
the event of the termination of employment of Gerald Porter Strong with the
Company or any of its affiliates for (a) disability, (b) resignation with Good
Reason and (c) termination without Cause; and

WHEREAS, the Company and the Purchaser wish to set
forth their understanding with respect to certain of the rights of the Company
to repurchase the Shares acquired by the Purchasers pursuant to the Share
Purchase Agreements.

NOW, THEREFORE, the parties hereto agree as follows:

1.             Repurchase by the Company.  At
any time within six (6) months after (i) termination of the employment of Mr. Strong by the Company or any of
its affiliates for Cause (as defined herein below); or (ii) termination of the
employment of Mr. Strong with the Company or any of its affiliates by
resignation without Good Reason (as defined herein below), the Company shall
have the right, but not the obligation, to purchase from the Purchaser in the
case of the termination or resignation of Mr. Strong and the Purchaser shall
sell to the Company, any or all of the Shares that such person owns for an
amount per share equal to the purchase price per share (as adjusted for stock
splits, stock dividends, combination or reclassification of shares or other
similar events) paid by the Purchaser pursuant to the Share Purchase Agreements.

Notwithstanding any provision contained herein to
the contrary, prior to December 31, 2006, if requested by the Company or any of
its affiliates, Mr. Strong shall continue to serve as a member of the Board of
Directors of the Company or any of its affiliates or as a member of an advisory
board of the Company or any of its affiliates, or, if the Company or any of its
affiliates shall not so request, the Company or any of its affiliates shall
otherwise employ Mr. Strong to provide such services to the Company or any of
its affiliates through December 31, 2006 on terms to be mutually agreed upon by
Mr. Strong and the Company or any of its affiliates.  In such case, the repurchase of Shares described in this Section
1 may not occur prior to December 31, 2006, unless Mr.

 

 

Strong
voluntarily terminates his membership on such Board of Directors or advisory
board or voluntarily terminates his services to the Company or any of its
affiliates.

 

For purposes of this Agreement “Cause” means
as to Mr. Strong (i) the commission of a felony by such person, (ii) acts of dishonesty by such person, resulting or intending to result in personal gain
or enrichment at the expense of the Company or any of its affiliates,
(iii) the material breach of any employment agreement(s) with the Company
or any of its affiliates, if any, by such person, (iv) the contravention by
such person of specific written lawful directions from the Board of Directors
of the Company or any of its affiliates, (v) conduct by such person in
connection with his duties under his employment agreement(s), if any, with the
Company or any of its affiliates, that is fraudulent, unlawful, or negligent,
or (vi) misconduct by such person which seriously discredits or damages the
Company or any of its affiliates.

 

“Good Reason” means with respect to Mr.
Strong, the occurrence of any of the following without such person’s written
consent:  (i) action by the Company or
any of its affiliates that results in a material diminution in such person’s
position, authority, duties or responsibilities; (ii) the failure by the
Company or any of its affiliates to make any payment or provide any award or
benefit to such person under any employment agreement(s) pursuant to the terms
thereof; or (iii) the breach by the Company or any of its affiliates of any
material term of any employment agreement(s) with such person, provided
that the Company or any of its affiliates shall have failed to cure the
deficiency that results in “Good Reason” within fifteen (15) business days
after receipt of written notice from such person specifying the nature of the
deficiency in reasonable detail; and provided, further, that a
change in Mr. Strong’s position, authority, duties or responsibilities in
connection with a management succession plan approved by the Board of Directors
of the Company or any of its affiliates shall not constitute “Good Reason.”

 

Notwithstanding the foregoing, in the event Mr.
Strong is subject to an employment agreement or other agreement with the
Company or any of its affiliates that contains a definition of Cause and/or
Good Reason, the terms “Cause” and “Good Reason” as used in this Agreement
shall have the same meaning as ascribed to such term in such employment
agreement.

 

                2.             Termination of Repurchase Rights.  The Company’s right to repurchase under
Section 1 above shall terminate as to the Purchaser, at the earliest of (i)
December 31, 2007, (ii) the date upon which Cerberus Capital Management, L.P.
(“Cerberus”) or its affiliated companies no longer holds more than 50%
of the voting power of the Company or (iii) the termination of the employment
of Mr. Strong with the Company or any of its affiliates by reason of (x)
disability, (y) resignation with Good Reason or (z) termination without Cause
(the “Termination Date”), provided, however, that any
right to repurchase arising prior to the Termination Date shall survive the
Termination Date until the expiration of the six-month period set forth in
Section 1 above or the 90-day extended period set forth in Section 3 below.

                3.             Mechanics. 
Upon the occurrence of an event that entitles the Company to repurchase
any of the Shares from the Purchaser pursuant to Section 1

 

-2-

 

above, the Company shall, by
written notice to such person within the applicable six-month period after such
event, notify such person of such number of Shares, if any, to be purchased by
the Company (the “Purchase Notice”). 
The Company and such person shall consummate such purchase on a date to
be agreed upon (not later than 10 calendar days after the delivery of the
Purchase Notice) by delivery by such person of certificate(s) representing the
Shares to be repurchased and by delivery of the purchase price therefor by the
Company by check or wire transfer.

                                If
such purchase of Shares by the Company is prohibited pursuant to the terms of
any agreement to which the Company is a party, the period during which the
Company may make such purchase shall be extended for a period of 90 days from
the expiration of the six-month period set forth in Section 1 above.  If the Company does not exercise its right
to repurchase all Shares eligible to be repurchased pursuant to Section 1
within the applicable six-month or 90-day extended period, the Company’s right
to repurchase such Shares pursuant to Section 1 above shall completely lapse.

                4.             Transfer Restrictions.  Prior to the Termination Date, the Purchaser may not sell, dispose of or otherwise transfer
any Shares owned by it without the consent of the Company except to the Company
in accordance with this Agreement and, provided that the consent of the Company
has been obtained, upon compliance in any other sale upon consent of the
Company upon compliance with Sections 7.1, 7.2 and 7.6 of the Shareholders’
Agreement dated October 1, 2003 by and among the Company and the persons listed
on the signature pages thereto and as amended by Amendment No. 1 thereto dated
as of the same date hereof.

5.             Further Action.  Each party hereto agrees to execute and
deliver any instrument and take any action that may reasonably be requested by
any other party for the purpose of effectuating the provisions of this
Agreement.

6.             General Provisions.

6.1           Effectiveness. 
This Agreement shall be effective upon the Effective Time (as defined in
the Agreement and Plan of Merger, dated November 4, 2003 by and among TIHL, VEX
Merger Subsidiary Corp. and ITXC Corp. (the “Merger Agreement” of the
Merger (as defined in the Merger Agreement). 
In the event that the Merger Agreement is terminated prior to the Effective
Time, this Agreement shall be null and void and of no further force and effect.

6.2           Governing Law. 
This Agreement shall be governed by and construed in accordance with the
laws of the State of New York applicable to agreements made and to be performed
entirely within such State.

6.3           Binding. 
This Agreement shall inure to the benefit of and be binding upon the
Company and the Purchaser, their respective successors, administrators,
representatives, heirs and assigns.

 

-3-

 

6.4           Counterparts. 
This Agreement may be executed simultaneously in one or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

6.5           Entire Agreement. 
This Agreement embodies the entire agreement and understanding of the
Company and the Purchaser hereto in respect of the subject matter contained
herein.  There are no restrictions,
promises, warranties, covenants, or understandings, other than those expressly
set forth or referred to herein.  This
Agreement supersedes all prior agreements and understandings between the
Company and the Purchaser with respect to such subject matter.  No supplement, modification or amendment of
this Agreement shall be binding unless executed in writing by the Company and
the Purchaser.

 

 

[Remainder of page
intentionally blank.  Signature page
follows.]

 

-4-

 

IN
WITNESS WHEREOF, the undersigned have executed this Agreement as of the date
first set forth above.

 

	
  THE COMPANY:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  TELEGLOBE BERMUDA

  	
   

  	
   

  
	
  HOLDINGS LTD

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Lenard Tessler

  
	
   

  	
  Name: Lenard Tessler

  	
   

  	
   

  
	
   

  	
  Title: Chairman

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  PURCHASER:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  GEMINI
  TRUST

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  ROYAL
  BANK OF CANADA TRUST COMPANY (BAHAMAS) LIMITED, as Trustee

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   /s/ Barbara
  Carroll

  
	
   

  	
   

  	
   

  	
  Name: Barbara Caroll

  
	
   

  	
   

  	
   

  	
  Title: Senior Trust Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   /s/ Daphne Moss

  
	
   

  	
   

  	
   

  	
  Name: Daphne Moss

  
	
   

  	
   

  	
   

  	
  Title: Senior Trust Officer

  
							

 

 

-5-

 

SCHEDULE A

(reflects
post-bonus share issuance)

 

	
  Purchaser

  	
   

  	
  Number of
  Shares

  	
   

  
	
  Gemini Trust

  	
   

  	
  1,096,163.523

  	
   

  

 

-6-

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