Document:

exv10w46

 

Exhibit 10.46

PROMISSORY NOTE

$3,223,848.04

June 30,
2004

     FOR VALUE RECEIVED, Acceris Communications Inc., a Florida corporation
formerly known as I-Link Incorporated (the “Maker”) promises to pay to Counsel
Corporation, an Ontario corporation, or its assigns (the “Payee”), in the
lawful money of the United States of America (“Dollars” or “$”) the principal
sum of Three Million Two-Hundred and Twenty-Three Thousand Eight-Hundred and
Forty Eight and 4/l00ths Dollars ($3,223,848.04) funded from time to time by
Payee to Maker, together with interest thereon as set forth herein, on or
before the Maturity Date as provided below and in accordance with the
provisions of that certain Loan Agreement dated as of January 26, 2004 between
the Maker and Payee as the same may be amended, modified, extended or restated,
the “Loan Agreement.” Capitalized terms used herein but not defined shall have
the meanings ascribed to them in the Loan Agreement.

     1. Interest. The outstanding principal amount of this Promissory Note
(the “Note”), together with unpaid interest, shall bear interest at the rate of
ten percent (10%) per annum commencing on the date funded as to principal
hereunder, namely, commencing April 8, 2004 in respect of Eight-Hundred
Thousand Dollars ($800,000.00) funded on that date reduced by Eighty
Nine-Thousand Eight-Hundred and Six and 96/100ths Dollars ($89,806.96) of such
amount repaid on April 30, 2004, commencing May 31, 2004 in respect of One
Million One-Hundred and Twenty-Three Thousand Dollars ($1,123,000.00) funded on
that date, commencing on June 18, 2004 in respect of One Million One-Hundred
Thousand Dollars ($1,100,000.00) funded on that date, and commencing June 29,
2004 in respect of Two-Hundred and Ninety Thousand Six-Hundred and Fifty-Five
Dollars ($290,655.00) funded on that date, which interest shall accrue and be
compounded quarterly and shall result in a corresponding increase in the
principal amount of the Indebtedness.

     2. Time and Place of Payment. The Indebtedness shall be due and payable
in full on December 31, 2005 (the “Maturity Date”); provided, however, the
Maturity Date shall be accelerated to the date ten (10) calendar days following
closing under or conclusion of each occurrence of (a) the sale or sales by
Maker to a third party unrelated to Payee of the Buyers United, Inc. Series B
Convertible Preferred Stock and/or the common stock into which such stock is
convertible owned by Maker and held by Payee as security for the performance by
Maker hereunder pursuant to the Stock Pledge Agreement between the Maker and
Payee (as hereinafter defined), or any portion thereof (a “BUI Sale”) or (b) an
equity investment or investments in Maker by a third party unrelated to Payee
through the capital markets, whether pursuant to a registered offering or
unregistered offering or other transaction (an “Equity Investment”); provided,
further, however, that the Maturity Date shall be accelerated with respect only
to the portion of the unpaid Indebtedness equal to the net amount received by
Maker from any such BUI Sale or any such Equity Investment.

     3. The Indebtedness, including that portion of the Indebtedness
represented by this Note, is secured pursuant to that Amended and Restated
Stock Pledge Agreement between the Maker and Payee dated as of January 26,
2004, executed and delivered concurrent herewith as the same has been amended,
modified, extended or restated, the “Stock Pledge Agreement.”

     4. Events of Default. The occurrence of any of the following events or
conditions shall constitute an event of default (each an “Event of Default”):

     (a) Maker shall fail to pay any of the Indebtedness pursuant to terms of
this Note;

     (b) Maker shall fail to comply with any term, obligation, covenant, or
condition contained in any agreement between Maker and Payee (each, an
“Agreement”);

     (c) Any warranty or representation made to Payee by Maker under any
Agreement proves to have been false when made or furnished;

     (d) If Maker voluntarily files a petition under the federal Bankruptcy
Act, as such Act may from time to time be amended, or under any similar or
successor federal statute relating to bankruptcy, insolvency, arrangements or
reorganizations, or under any state bankruptcy or insolvency act, or files an
answer in an

 

 

involuntary proceeding admitting insolvency or inability to pay debts, or
if Maker is adjudged a bankrupt, or if a trustee or receiver is appointed for
Maker’s property, or if Maker makes an assignment for the benefit of its
creditors, or if there is an attachment, receivership, execution or other
judicial seizure, then Payee may, at Payee’s option, declare all of the
Indebtedness to be immediately due and payable without prior notice to Maker,
and Payee may invoke any remedies permitted by this Note. Any attorneys’ fees
and other expenses incurred by Payee in connection with Maker’s bankruptcy or
any of the other events described in this Section 3 shall be additional
Indebtedness of Maker secured by this Note.

     (e) There exists a material breach by Maker under (or a termination by any
party of) a material contract of Maker (for purposes of this Section 4 a
material contract shall mean any contract resulting in revenues of in excess of
$10,000 per annum);

     (f) Maker is in default under any funded indebtedness, including but not
limited to indebtedness evidenced by notes or capital leases, of Maker other
than the amounts loaned pursuant to this Note; or

     (g) If Maker’s business undergoes a material adverse change in Payee’s
reasonable opinion.

     If an Event of Default specified in Section 4(d) hereof occurs and is
continuing, the principal amount of the Indebtedness, together with all accrued
and unpaid interest thereon, shall automatically become and be immediately due
and payable, without any declaration or other act on the part of Payee.

     5. Acceleration. Upon an Event of Default, the Payee may give written
notice to the Maker of the occurrence of such Event of Default and Maker shall
have the shorter of (i) thirty (30) days or (ii) such remedy period as set
forth in the applicable provisions of Section 4 within which to cure such Event
of Default. If the Event of Default is not cured within the applicable cure
period, then, at the option of the Payee, Payee may declare the Maker in
default (a “Default”) and all sums due hereunder shall become immediately due
and payable.

     Any written notification from Payee to Maker hereunder shall be deemed to
be written notification of an Event of Default, or Default, or rescission of
Acceleration (as provided below), respectively, only if such notification,
communication or other election shall (a) be clearly and distinctly identified
as such a Notice of Event of Default, Notice of Default, or Notice of
Rescission of Acceleration, respectively, and (b) be given by certified mail,
return receipt requested or overnight delivery requiring acknowledgement of
receipt, and any communication between the parties not so designated and
delivered shall not be construed or deemed to be effective notice under this
Section 5.

     6. Waivers. The Maker hereby waives presentment, demand for payment,
notice of dishonor and any and all other notices or demands in connection with
the delivery, acceptance, performance, default or enforcement of this Note and
hereby consents to any waivers or modifications that may be granted or
consented to by the Payee of this Note. No waiver by the Payee or any breach
of any covenant of the Maker herein contained or any term or condition hereof
shall be construed as a waiver of any subsequent breach of the same or of any
other covenant, term or condition whatsoever.

     7. Enforcement. In the event that any Payee of this Note shall institute
any action for the enforcement or the collection of this Note, there shall be
immediately due and payable, in addition to the unpaid balance of this Note,
all late charges, and all costs and expenses of such action including
reasonable attorney’s fees. The Maker waives the right to interpose any
setoff, counterclaim or defense of any nature or description whatsoever.

     8. Replacement of Note. Upon receipt by the Maker of evidence
satisfactory to it of the loss, theft, destruction or mutilation of this Note,
and (in case of loss, theft or destruction) of an indemnity reasonably
satisfactory to it, and upon reimbursement to the Make of all reasonable
expenses incidental thereto, and upon surrender and cancellation of this Note
if mutilated, the Maker will make and delivery a new Note of like tenor in lieu
of this Note.

     9. Amendments. This Note may not be changed, modified, amended, or
terminated except by a writing duly executed by the Maker and the Payee.

     10. Governing Law. This Note shall be governed by, and construed in
accordance with, the laws of the State of New York.

 

 

     11. Assignment. This Note may not be assigned, in whole or in part, by
operation of law or otherwise, by the Maker without the prior written consent
of the Payee in its sole and absolute discretion, and any purported assignment
without the express prior written consent of the Payee shall be void ab initio.
The Payee may assign any or all of its rights and interests hereunder to any
party. Subject to the foregoing, this Note shall be binding upon, and inure to
the benefit of, the successors and assigns of the Payee and the Maker.

[See attached Signature Page]

 

 

Signature Page

to Promissory Note

dated as of June 30, 2004

     IN WITNESS WHEREOF, the Maker has executed this Promissory Note by its
duly authorized officer as of the 30th day of June, 2004.

	 	 	 	 	 
	 	 	ACCERIS COMMUICATIONS INC.
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	

	

	 	Name:	 	 
	

	 	 	 	

	

	 	Title:exv10w47

 

Exhibit 10.47

FIRST AMENDMENT

TO

LOAN AGREEMENT

     THIS FIRST AMENDMENT TO LOAN AGREEMENT is made and entered into as of June
30, 2004, by and between, Counsel Corporation (US), a Delaware corporation,
(“Lender”) and Acceris Communications Inc. (formerly known as I-Link
Incorporated), a Florida corporation (“Borrower”) (hereinafter collectively
referred to as the “Parties”).

     WHEREAS, Acceris Communications Corp. (formerly known as WorldxChange
Corp., a Delaware corporation (“WorldxChange”)), Lender and Borrower entered
into a Loan and Security Agreement dated June 4, 2001, as heretofore amended
(the “2001 Loan Agreement”); and

     WHEREAS, pursuant to an Assignment and Assumption Agreement dated as of
October 1, 2003, between Lender and Borrower, Lender assigned to Borrower the
total principal plus accrued interest of the indebtedness represented by and
subject to the 2001 Loan Agreement and the Promissory Note of even date issued
by WorldxChange in the principal amount of Nine Million Seven Hundred
Forty-Three Thousand Four Hundred Seventy-Nine and 16/100ths Dollars
($9,743,479.16) (the “Assigned Debt”); and

     WHEREAS, Borrower and WorldxChange entered into that Stock Subscription
and Purchase Agreement dated as of October 1, 2003 (the “Subscription
Agreement”) pursuant to which Borrower contributed the Assigned Debt to
WorldxChange in partial consideration for the issuance by WorldxChange of 221
shares of WorldxChange Common Stock; and

     WHEREAS, Borrower issued its Secured Promissory Note as of October 1,
2003, to Lender in the principal amount of Nine Million Seven Hundred
Forty-Three Thousand Four Hundred Seventy-Nine and 16/l00ths Dollars
($9,743,479.16), which indebtedness is subject to the terms and conditions of
the Loan Agreement; and

     WHEREAS, the repayment of the indebtedness represented by the Secured
Promissory Note, (as the same may be amended, modified, extended or restated,
the “Secured Promissory Note”) is secured pursuant to that Stock Pledge
Agreement (as the same may be amended, modified, extended or restated, the
“Stock Pledge Agreement”) between the Lender and the Borrower pursuant to which
the Borrower granted to Lender a security interest in the Collateral described
therein including all of the shares of common stock of WorldxChange issuable or
issued to Borrower.

     WHEREAS, the Parties desire to further document, ratify and confirm the
amendment to the Loan Agreement effective as of June 30, 2004 (the “Effective
Date").

     NOW, THEREFORE, for good and valuable consideration the receipt and
adequacy of which is hereby acknowledged it is agreed as follows:

1. Maturity Date. Effective as of the Effective Date, Section 1.4 of the Loan
Agreement is hereby amended and restated in its entirety to read as follows:

“Section 1.4. Principal Repayment The outstanding principal balance
of the Loan plus any accrued and unpaid interest thereon, together
with any and all other Liabilities (as such term is defined in the
Stock Pledge Agreement (collectively, the “Secured Obligations”),
shall be due and payable on December 31, 2005 (the “Maturity
Date”).”

     2. Effect on Loan Agreement and Loan Note. This First Amendment is not
intended, nor shall it be construed, as a modification or termination of the
Amended and Restated Debt Restructuring Agreement, dated October 15, 2002.
Except as expressly provided herein, the Loan Agreement is hereby ratified and
confirmed and remains in full force and effect in accordance with its terms.

 

 

     IN WITNESS WHEREOF, the Parties have executed this First Amendment as of
the date first set forth above.

[See attached signature page]

 

 

Signature page

to

First Amendment to Loan Agreement

dated as of June 30, 2004

	 	 	 	 	 
	 	COUNSEL CORPORATION (US)

 	 
	 	By:  	__________________________
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	ACCERIS COMMUNICATIONS INC.

 	 
	 	By:  	__________________________
 	 
	 	 	Name:  	 	 
	 	 	Title:

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