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                                                                    EXHIBIT 10.7

                     ACCOUNTS RECEIVABLE FINANCING AGREEMENT

     This ACCOUNTS RECEIVABLE FINANCING AGREEMENT is entered into this 3rd day
of February, 2003 by and between SILICON VALLEY BANK, a California-chartered
bank, with its principal place of business at 3003 Tasman Drive, Santa Clara,
California 95054 and with a loan production office located at One Newton
Executive Park, Suite 200, 2221 Washington Street, Newton, Massachusetts 02462,
doing business under the name "Silicon Valley East" (FAX 617-969-5965) ("Bank")
and ARBINET-THEXCHANGE, INC., a Delaware corporation with its principal place of
business at 75 Broad Street, 20th Floor, New York, New York 10004 (FAX:
917/320-1895) ("Borrower") and provides the terms on which Bank shall lend to
Borrower and Borrower shall repay Bank. The parties as follows:

1. Definitions. In this Agreement:

          "Accounts" are accounts as defined under the Code, including, without
limitation, all existing and later arising accounts, contract rights, and other
obligations owed Borrower in connection with its sale or lease of goods of
provision of services, all credit insurance, guaranties, other security and all
merchandise returned or reclaimed by Borrower and Borrower's Books relating to
any of the foregoing.

          "Account Balance" is the aggregate outstanding Advances made
hereunder.

          "Account Debtor" is as defined in the Code and shall include, without
limitation, any person liable on any Financed Receivable, such as, a guarantor
of the Financed Receivable and any issuer of a letter of credit or banker's
acceptance.

          "Adjustments" are all discounts, allowances, returns, disputes,
counterclaims, offsets, defenses, rights of recoupment, rights of return,
warranty claims, or short payments, asserted by or on behalf of any Account
Debtor for any Financed Receivable.

          "Advance" is defined in Section 2.2.

          "Advanced Rate" is eighty percent (80%), net of any offsets related to
each specific Account Debtor, or such other percentage as Bank establishes under
Section 2.2.

          "Affiliate" a Person that owns or controls directly or indirectly the
Person, any Person that controls or is controlled by or is under common control
with the Person, and each of that Person's senior executive officers, directors,
partners and, for any Person that is a limited liability company, that Person's
managers and members.

          "Applicable Rate" is a per annum rate equal to the "Prime Rate" plus
five one-half percent (5.5%).

          "Borrower's Books" are all Borrower's books and records including
ledgers, records regarding Borrower's assets or liabilities, the Collateral,
business operations or financial condition and all computer programs or discs or
any equipment containing the information.

          "Cash Collateral Account" is defined in Section 3.6.

          "Closing Date" is the date of this Agreement.

          "Code" is the Uniform Commercial Code as adopted by The Commonwealth
of Massachusetts (presently, Mass. Gen. Laws, Ch. 106), as may be amended and in
effect from time to time.

          "Collateral" is attached as Exhibit "A".

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          "Collections" are all funds received by Bank from or on behalf of an
Account Debtor for Financed Receivables.

          "Compliance Certificate" is attached as Exhibit "B".

          "Contingent Obligation" is, for any Person, any direct or indirect
liability, contingent or not, of that Person for: (i) any indebtedness, lease,
dividend, letter of credit or other obligation of another such as an obligation
directly or indirectly guaranteed, endorsed, co-made, discounted or sold with
recourse by that Person, or for which that Person is directly or indirectly
liable; (ii) any obligations for undrawn letters of credit for the account of
that Person; and (iii) all obligations from any interest rate, currency or
commodity swap agreement, interest rate cap or collar agreement, or other
agreement or arrangement designated to protect a Person against fluctuation in
interest rates, currency exchange rates or commodity prices; but "Contingent
Obligation" does not include endorsements in the ordinary course of business.
The amount of a Contingent Obligation is the stated or determined amount of the
primary obligation for which the Contingent Obligation is made or, if not
determinable, the maximum reasonably anticipated liability for it determined by
the Person in goof faith; but the amount may not exceed the maximum of the
obligations under the guarantee or other support arrangement.

          "Deferred Revenue" is all amounts received in advance of performance
under contracts and not yet recognized as revenue.

          "Early Termination Fee" is defined in Section 4.3.

          "EBITDA" as used herein, EBITDA means, on a consolidated basis,
earnings before interest, taxes, depreciation and other non-cash amortization
expenses, determined in accordance with GAAP.

          "Eligible Accounts" is defined in Section 2.2.

          "ERISA" is the Employment Retirement Income Security Act of 1974, and
its regulations.

          "Event of Default" is defined in Section 9.

          "Facility Amount" is Twelve Million Five Hundred Thousand Dollars
($12,500,500.00), provided that the Facility Amount shall be limited to Six
Million Two Hundred Fifty Thousand Dollars ($6,250,000.00) (the "Cap") until
such time as the Bank increases the Cap in the Bank's sole and absolute
discretion. Any increase in the availability above the Cap described in the
foregoing sentence shall be deemed received to the extent that: (i) Bank
provides written notice to Borrower of such increase and only for the amount of
such increase, or (ii) the aggregate outstanding amount of Financed Receivables
at any one time exceeds the Cap, in which case the Facility Amount shall be
deemed to be such increased amount.

          "Facility Fee" is defined in Section 3.3.

          "Facility Period" is the period beginning on this date and continuing
until the Maturity Date, unless the period is terminated sooner (i) by Bank at
any time with notice to Borrower, (ii) by Borrower pursuant to Section 4.3, or
(iii) upon an Event of Default.

          "Finance Charges". is defined in Section 3.2.

          "Financed Receivables" are all those accounts, receivables, chattel
paper, instruments, contract rights, documents, general intangibles, letters of
credit, drafts, bankers acceptances, and rights to payment, and all proceeds,
including their proceeds (collectively "receivables"), which Bank finances and
make and Advance. A Financed Receivable stops being a Financed Receivable (but
remains Collateral) when the Advance made for the Financed Receivable has been
finally paid.

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          "Financed Receivable Balance" is the total outstanding amount, at any
time, of all Financed Receivables.

          "GAAP" is generally accepted accounting principles as adopted by the
Financial Accounting Standards Board.

          "Good Faith Deposit" is described in Section 3.7.

          "Indebtedness" is (a) indebtedness for borrowed money or the deferred
price of property or services, such as reimbursement and other obligations for
surety bonds and letters of credit, (b) obligations evidenced by notes, bonds,
debentures or similar instruments, (c) capital lease obligations and (d)
Contingent Obligations.

          "Ineligible Receivable" is any accounts receivable:

                    (a)  that is unpaid thirty (30) calendar days after the
                         invoice date; or

                    (b)  that is owed by an Account Debtor that has filed, or
                         has had filed against it, any bankruptcy case,
                         assignment for the benefit of creditors, receivership,
                         or Insolvency Proceeding or who has become insolvent
                         (as defined in the United States Bankruptcy Code) or
                         who is generally not paying its debts as they become
                         due; or

                    (c)  for which there has been any breach of warranty or
                         representation in Section 6 or any breach of any
                         covenant in this Agreement; or

                    (d)  for which the Account Debtor asserts any discount,
                         allowance, return, dispute, counterclaim, offset,
                         defense, right of recoupment, right of return, warranty
                         claim, or short payment (but only to the extent of such
                         asserted discount, allowance, return, dispute,
                         counterclaim, offset, defense, right of recoupment,
                         right of return, warranty claim, or short payment).

          "Insolvency Proceeding" are proceedings by or against any person under
the United States Bankruptcy Code, or any other bankruptcy or insolvency law,
including assignments for the benefit of creditors, compositions, extensions
generally with its creditors, or proceedings seeking reorganization,
arrangement, or other similar relief

          "Invoice Transmittal" shows accounts receivable which Bank may finance
and, for each receivable, includes the Account Debtor's, name, address, invoice
amount, invoice date and invoice number and is authorized by Borrower.

          "Lockbox" is described in Section 6.3(J).

          "Maturity Date" shall be February 2, 2004.

          "Minimum Finance Charge" is a minimum monthly Finance Charge to be
imposed beginning in the first full month of this Agreement, payable in arrears,
of Seven Thousand Five Hundred Dollars ($7,500.00), which amount shall increases
in the Cap as defined herein: (i) when the Cap is at least Eight Million Seven
Hundred Fifty Thousand Dollars($8,750,000.00) but less than Twelve Million Five
Hundred Dollars ($12,500,000.00), a minimum monthly Finance Charge of Ten
Thousand Dollars($10,000.00); and (ii) when the Cap is Twelve Million Five
Hundred Thousand Dollars($12,500,000.00), a minimum monthly Finance Charge of
Fourteen Thousand Dollars($14,000.00).

          "Obligations" are all advances, liabilities, obligations, covenants
and duties owing, arising, due or payable by Borrower to Bank now or later under
this Agreement or any other document, instrument or agreement, account
(including those acquired by assignment) primary or secondary, such as all
Advances, Finance Charges, Facility Fee,

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Early Termination Fee, interest, fees, expenses, professional fees and
attorneys' fees, or other amounts now or hereafter owing by Borrower to Bank.

          "Operating Account" are, individually and collectively, all depository
or operating accounts maintained by Borrower at the Bank (but not including
investment accounts).

          "Person" is any individual, sole proprietorship, partnership, limited
liability company, joint venture, company, trust, unincorporated organization,
association, corporation, institution, public benefit corporation, firm, joint
stock company, estate, entity or government agency.

          "Prime Rate" is Bank's most recently announced "Prime Rate," even if
it is not Bank's lowest rate, except that at no time under this Agreement shall
the Prime Rate be less than four and one-quarter percent (4.25%) nor greater
than six and one-half percent (6.50%).

          "Reconciliation Day" is the last calendar day of each month.

          "Reconciliation Period" is each calendar month.

          "Subsidiary" is for any Person, joint venture, or any other business
entity of which more than 50% of the voting stock or other equity interests is
owned or controlled, directly or indirectly, by the Person or one or more
Affiliates of the Person.

2. Financing of Accounts Receivable.

     2.1. Request for Advances. During the Facility Period, Borrower may offer
accounts receivable to Bank and request that the Bank finance such accounts
receivables, if there is not an Event of Default. Borrower will deliver an
Invoice Transmittal for each accounts receivable it offers. Bank may rely on
information on or with the Invoice Transmittal.

     2.2. Acceptance of Accounts Receivable. Bank is not obligated to finance
any accounts receivable, except as provided herein. Bank agrees to finance
account receivables from qualified credit Account Debtors as determined by Bank
in its reasonable discretion unless, in Bank's reasonable assessment, the credit
risk on those Account Debtors has changed, or there exists an Event of Default.
Without limiting the Bank's discretion described in the foregoing sentence, the
Bank may finance (i) certain billed receivables and (ii) certain unbilled
receivables for minutes purchased in the current billing cycle but to be
invoiced within fifteen (15) days. Bank may approve any Account Debtor's credit
("Eligible Account" or collectively, "Eligible Accounts") in writing before
agreeing to finance any accounts receivable and will extend Advances against
Eligible Accounts. Bank reserves the right, in its reasonable discretion, to
remove any specific Account Debtor from the Eligible Accounts. When Bank agrees
to finance a receivable, it will extend credit to Borrower in an amount up to
the result of the Advance Rate multiplied by the face amount of the receivable
(the "Advance"). Bank may, in its discretion, change the percentage of the
Advance Rate with notice to Borrower. When Bank makes an Advance, the receivable
becomes a "Financed Receivable." All representations and warranties in Section 6
must be true as of the date of the Invoice Transmittal and of the Advance and no
Event of Default exists or would occur as a result of the Advance. The aggregate
face amount of all Financed Receivables outstanding at any time may not exceed
the Facility Amount, as affected by the Cap.

3. Collections, Finance Charges, Remittances and Fees. The Obligations shall be
subject to the following fees and Finance Charges. Fees and Finance Charges may,
in Bank's discretion, be charged as an Advance, and shall thereafter accrue fees
and Finance Charges as described below. Bank may, in its discretion, charge fees
and Finance Charges to Borrower's Cash Collateral Account or Operating Account.
The Bank will provide Borrower with written notice of any such charges of the
Borrower's accounts.

     3.1. Collections. Collections will be credited to the Financed Receivables
Balance, but if there is an Event of Default, Bank may apply Collections to the
Obligations in any order it chooses. If Bank receives a payment for both

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a Financed Receivable a non Financed Receivable, the funds will first be applied
to the Financed Receivable and, if there is not an Event of Default, the excess
will be remitted to the Borrower, subject to Section 3.6.

     3.2. Finance Charges. In computing Finance Charges on the Obligations, all
Collections received by Bank shall be deemed applied by Bank on account of the
Obligations three (3) Business Days after receipt of the Collections. Borrower
will pay a finance charge (the "Finance Charge"), which is equal to the greater
of (i) the Applicable Rate divided by 360 multiplied by the number of days in
the Reconciliation Period multiplied by the outstanding average daily Financed
Receivable Balance for that Reconciliation Period, or (ii) the Minimum Finance
Charge.

     3.3. Facility Fee. A fully earned, non-refundable facility fee of
Seventy-Five Thousand Dollars ($75,000.00) is due upon execution of this
Agreement. Notwithstanding the foregoing, the Bank will refund one half (50.0%)
of the Facility Fee paid by Borrower for any particular year, in the event that
the Borrower terminates this Agreement solely because the aggregate outstanding
amount of Financed Receivables over any two (2) month period is at all times
less than Five Million Dollars ($5,000,000.00) (and Borrower has requested that
Bank finance Receivables, in accordance with the terms of this Agreement, in
excess of such amount) provided that (A) the value of the Collateral (as
reasonably determined by Bank) available to the Bank hereunder is in excess of
Five Million Dollars ($5,000,000.00) and (B) no Event of Default has occurred
during such two (2) month period, or would exist but for notice.

     3.4. Accounting. After each Reconciliation Period, Bank will provide an
accounting of the transaction for that Reconciliation Period, including the
amount of all Financed Receivables, all Collections, Adjustments, Finance
Charges and the Facility Fee. If Borrower does not object to the accounting in
writing within forty five (45) days it is considered correct. All Finance
Charges and other interest and fees are calculated on the basis of a 360 day
year and actual days elapsed.

     3.5. Deductions. Bank may deduct fees, Finance Charges and other amounts
due pursuant to this Agreement from any Advances made or Collections received by
Bank.

     3.6. Account Collection Service. All Borrower's receivables are to be paid
to the same address/or party and Borrower and Bank must agree on such address,
or cash collateral account at Bank (the "Cash Collateral Account"). If Bank
collects all receivables and there is not an Event of Default, Bank shall,
promptly after receipt of those collections, promptly permit Borrower to
transfer from the Cash Collateral account to the Operating Account, all
receivables collections Bank receives for receivables other than Financed
Receivables and/or amounts in excess of the amount for which Bank has made an
Advance to Borrower, less any amount due to Bank, such as the Finance Charge,
the Facility Fee, other fees and expenses, or otherwise. This Section does not
impose any affirmative duty on Bank to do any act other than to turn over
amounts, as provided herein. All receivables and collections are Collateral and
if an Event of Default occurs, Bank need not remit collections of Collateral and
may apply them up to the amount of the Obligations. All Financed Receivables
collected by Bank shall be first applied to Advances, and other Obligations,
and, provided no Event of Default then exists, or would exist but for notice,
the excess amounts collected by Bank, if any, shall be remitted to the Borrower
for deposit into the Operating Account. Notwithstanding the foregoing, at any
time during which there are no Obligations outstanding, the Bank shall promptly
remit collections of Collateral to the Operating Account regardless of whether
an Event of Default has occurred.

     3.7. Good Faith Deposit. Borrower has paid to Bank a Good Faith Deposit of
Fifteen Thousand Dollars ($15,000.00) to initiate Bank's due diligence review
process. Any portion of the deposit not utilized to pay expenses will be applied
to the Facility Fee.

4. Repayment of Obligations.

     4.1. Repayment of Maturity. Borrower will repay each Advance on the
earliest of: (a) payment of the Financed Receivables in respect which the
Advance was made; (b) the Financed Receivable becomes an Ineligible Receivable,
(c) when any Adjustment is made to the Financed Receivable (but only to the
extent of the Adjustment if the Financed Receivable is not otherwise an
Ineligible Receivable); or (d) the last day of the Facility Period

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(including any early termination). Each payment will also include all accrued
Finance Charges on the Advance and all other amounts due hereunder.

     4.2. Repayment on Event of Default. When there is an Event of Default,
Borrower will, if Bank demands (or, in an Event of Default under Section 9(B),
immediately without notice or demand from Bank) repay all of the Advances. The
demand may, at Bank's option, include the Advance for each Financed Receivable
then outstanding and all accrued Finance Charges, the Early Termination Fee,
reasonable attorneys and professional fees, court costs and expenses, and any
other Obligations.

     4.3. Early Termination of Agreement. This Agreement may be terminated prior
to the last day of the Facility Period as follows: (i) by Borrower, effective
three Business Days after written notice of termination is given to Bank; or
(ii) by Bank at any time after the occurrence of an Event of Default, without
notice, effective immediately. If this agreement is terminated prior to the
Maturity Date: (A) by Bank in accordance with clause (ii) in the foregoing
sentence or (B) by Borrower for any reason, Borrower shall pay to Bank a
termination fee in an amount equal to One Hundred Thousand Dollars ($100,000.00)
(the "Early Termination Fee"). The Early Termination Fee shall be due and
payable on the effective date of such termination and thereafter shall bear
interest at a rate equal to the highest rate applicable to any of the
Obligations. Notwithstanding the foregoing, Bank agrees to waive the Early
Termination Fee if: (i) Bank agrees to refinance and redocument this Agreement
under another division of the Bank (in its sole and exclusive discretion) prior
to the last day of the Facility Period, or (ii) the aggregate outstanding amount
of Financed Receivables over any two (2) month period is at all times less than
Five Million Dollars ($5,000,000.00) (and Borrower has requested that Bank
finance Receivables, in accordance with the terms of this Agreement, in excess
of such amount) provided that (A) the value of the Collateral (as reasonably
determined by Bank) available to the Bank hereunder is in excess of Five Million
Dollars ($5,000,000.00) and (B) no Event of Default has occurred during such two
(2) month period.

5. Power of Attorney. Borrower irrevocably appoints Bank and its successors and
assigns it attorney-in-fact and authorizes Bank to:

               (A) following the occurrence of an Event of Default which has not
          been cured, sell, assign, transfer, pledge, compromise, or discharge
          all or any part of the Financed Receivables;

               (B) following the occurrence of an Event of Default which has not
          been cured, demand, collect, sue, and give releases to any Account
          Debtor for monies due and compromise, prosecute, or defend any action,
          claim, case or proceeding about the Financed Receivables, including
          filing a claim or voting a claim in any bankruptcy case in Bank's or
          Borrower's name, as Bank chooses;

               (C) following the occurrence of an Event of Default which has not
          been cured, prepare, file and sign Borrower's name on any notice,
          claim, assignment, demand, draft, or notice of or satisfaction of lien
          or mechanics' lien or similar document;

               (D) regardless of whether there has been an Event of Default,
          notify all Account Debtors to pay Bank directly;

               (E) regardless of whether there has been an Event of Default,
          receive, open, and dispose of mail addressed to Borrower;

               (F) regardless of whether there has been an Event of Default,
          endorse Borrower's name on check or other instrument (to the extent
          necessary to pay amounts owed pursuant to this Agreement); and

               (G) regardless of whether there has been an Event of Default,
          execute on Borrower's behalf any instruments, documents, financing
          statements to perfect Bank's interests in the Financed Receivables and
          Collateral and do all acts and things necessary or expedient, as
          determined by Bank in its reasonable discretion, to protect or
          preserve Bank's rights and remedies under this Agreement.

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6. Representations, Warranties and Covenants.

     6.1. Representations and Warranties. Borrower represents and warrants for
each Financed Receivable:

               (A) Borrower is the owner with legal right to sell, transfer and
          assign all Financed Receivables, provided that Borrower may assign
          certain rights to the Financed Receivables pursuant to a certain
          Factoring Agreement (the "Factoring Agreement") to be entered into
          between GMAC Commercial Credit LLC ("GMAC") and Borrower, which
          Factoring Agreement shall be subject to the terms of this Agreement
          and further subject to a letter agreement (the "Letter Agreement") in
          form and substance acceptable to Bank, Borrower, GMAC and ORIX
          Merchant Banking LLC ("ORIX");

               (B) The correct amount is on the Invoice Transmittal and is not
          disputed;

               (C) Payment is not contingent on any obligation or contract and
          it has fulfilled all its obligations as of the Invoice Transmittal
          date;

               (D) It is based on an actual sale and delivery of goods and/or
          services rendered, due to Borrower, it is not past due or in default,
          has not been previously sold, assigned, transferred, or pledged and is
          free of any liens, security interests and encumbrances;

               (E) There are no defenses, offsets (except as disclosed by
          Borrower to Bank in writing at the time of making an Advance with
          respect to a Financed Receivable), counterclaims or agreements for
          which the Account Debtor may claim any deduction or discount:

               (F) Borrower reasonably believes no Account Debtor is insolvent
          or subject to any Insolvency Proceedings;

               (G) Borrower has not filed or had filed against it Insolvency
          Proceedings and does not anticipate any filing;

               (H) Bank has the right to endorse and/or require Borrower to
          endorse all payments received on Financed Receivables and all proceeds
          of Collateral; and

               (I) No representation, warranty or other statement of Borrower in
          any certificate or written statement given to Bank contains any untrue
          statement of a material fact or omits to state a material fact
          necessary to make the statement contained in the certificates or
          statement not misleading.

     6.2. Additional Representations and Warranties. Borrower represents and
warrants as follows:

               (A) Borrower is duly existing and in good standing in its state
          of formation and qualified and licensed to do business in, and in good
          standing in, any state in which the conduct of its business or its
          ownership of property requires that it be qualified. The execution,
          delivery and performance of this Agreement has been duly authorized,
          and does not conflict with Borrower's organizational documents or
          constitute an Event of Default under any material agreement by which
          Borrower is bound. Borrower is not in default under any material
          agreement to which or by which it is bound.

               (B) Borrower has good title to the Collateral, provided that
          Borrower has assigned certain rights to the Financed Receivables
          pursuant to the Factoring Agreement, which Factoring Agreement is
          subject to the terms of this Agreement and will be further subject to
          the Letter Agreement. All inventory is in all material respects of
          good and marketable quality, free from material defects.

               (C) There are no material actions or proceedings pending or, to
          Borrower's knowledge, threatened by or against Borrower or any
          Subsidiary of Borrower.

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               (D) All consolidated financial statements for Borrower and any
          Subsidiary of Borrowers delivered to Bank fairly present in all
          material respects Borrower's consolidated financial condition and
          Borrower's consolidated results of operations. There has not been any
          material deterioration in Borrower's consolidated financial condition
          since the date of the most recent financial statements submitted to
          Bank.

               (E) Borrower is able to pay its debts (including trade debts) as
          they mature.

               (F) No representation, warranty or other statement of Borrower in
          any certificate or written statement given to Bank contains any untrue
          statement of a material fact or omits to state a material fact
          necessary to make the statements contained in the certificates or
          statements not misleading.

               (G) Borrower is not an "investment company" or a company
          "controlled" by an "investment company" under the Investment Company
          Act. Borrower is not engaged as one of its important activities in
          extending credit for margin stock (under Regulations X, T and U of the
          Federal Reserve Board of Governors). Borrower has complied with the
          Federal Fair Labor Standards Act. Borrower has not violated any laws,
          ordinances or rules. None of Borrower's properties or assets has been
          used by Borrower, to the best of borrower's knowledge, by previous
          persons, in disposing, producing storing, treating, or transporting
          any hazardous substance other than legally. Borrower has timely filed
          all required tax returns and paid, or made adequate provision to pay,
          all taxes. Borrower has obtained all consents, approvals and
          authorizations of, made all declarations or fillings with, and given
          all notices to, all government authorities that are necessary to
          continue its business as currently conducted.

     6.3. Affirmative Covenants. Borrow will do all of the following:

               (A) Maintain its corporate existence and good standing in its
          jurisdictions of incorporation and maintain its qualification in each
          jurisdiction necessary to Borrower's business or operations.

               (B) Pay all its taxes including gross payroll, withholding and
          sales taxes when due and will deliver satisfactory evidence of payment
          if requested.

               (C) Upon request by Bank, provide a written report within sixty
          (60) days after the invoice date respecting any Financed Receivable
          (or as and when otherwise directed by the Bank), if payment of any
          Financed Receivable does not occur by its due date and include the
          reasons for the delay.

               (D) Borrower shall deliver to Bank: (i) as soon as available, but
          no later than forty five (45) days after the last day of each month, a
          company prepared consolidated balance sheet and income statement
          covering Borrower's consolidated operations during the period, in a
          form acceptable to Bank (current form delivered to Bank is deemed
          acceptable) and certified Borrower; (ii) as soon as available, but no
          later than one hundred twenty (120) days after the end of Borrower's
          fiscal year, audited consolidated financial statements prepared under
          GAAP, consistently applied, together with an unqualified opinion on
          the financial statements from an independent certified public
          accounting firm acceptable to Bank (Ernst & young is currently deemed
          acceptable); (iii) in the event that the Borrower's stock becomes
          publicly held, within ten (10) days of filing, copies of all
          statements, reports and notices made available to Borrower's security
          holders or to any holders of subordinated debt and all reports on Form
          10-K, 10-Q and 8-K filed with the Securities and Exchange Commission;
          and (iv) budgets, sales projections, operating plans or other
          financial information reasonably requested by Bank.

               (E) Borrower shall keep its business and the Collateral insured
          for risks and in amounts, as Bank requests. GMAC is deemed to be an
          acceptable provider of credit protection with respect to the accounts
          receivable. Insurance policies shall be in a form, with companies, and
          in amounts that are reasonably satisfactory to Bank. All property
          policies shall have a lender's loss payable endorsement showing Bank
          as an additional loss payee and all liability policies shall show the
          Bank as an additional insured and all policies shall provide that the
          insurer must give Bank at least twenty (20) days notice

                                       -8-

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          before canceling its policy. At Bank's request, Borrower shall deliver
          certified copies of policies and evidence of all premium payments.
          Proceeds payable under any policy shall, at Bank's option, be payable
          to Bank on account of the Obligations.

               (F) Execute any further instruments and take further action as
          Bank reasonably requests to perfect or continue Bank's security
          interest in the Collateral or to effect the purposes of this
          Agreement.

               (G) Provide Bank with a Compliance Certificate along with monthly
          and annual financial statements, or as requested by Bank.

               (H) Provide Bank with as soon as available, but no later than
          forty five (45) days following each Reconciliation Period, a company
          prepared balance sheet and income statement, prepared under GAAP,
          consistently applied, covering Borrower's operations during the period
          along with a Deferred Revenue report. All of the foregoing shall be in
          form and substance satisfactory to the Bank.

               (I) Immediately notify, transfer and deliver to Bank all
          collections Borrower receives for Financed Receivables (and, as and
          when required hereunder, for all receivables).

               (J) Borrower shall direct each Account Debtor (and each
          depository institution where proceeds of accounts receivable are on
          deposit) to make payments with respect to all receivables to a lockbox
          account established with the Bank ("Lockbox") or to wire transfer
          payments to the Cash Collateral Account that Bank controls, as and
          when directed by the Bank from time to time, at its option and at the
          sole and exclusive discretion of the Bank. Until such Lockbox can be
          established, the Borrower shall remit all receivable cash payments and
          remittances to the Bank at least weekly (at the close of business on
          each Friday) along with a detailed cash receipts journal. It will be
          considered an immediate Event of Default if the Lockbox is not set-up
          and operational within 45 days from the date of this Agreement.

               (K) Borrower will allow Bank to audit Borrower's Collateral,
          including, but not limited to, Borrower's Accounts and accounts
          receivable, at Borrower's expense (at Bank's customary rates) prior to
          the initial Advance hereunder and once every six (6) months
          thereafter, upon reasonable notice. Provided, however, if an Event of
          Default has occurred, Bank may audit Borrower's Collateral, including,
          but not limited to, Borrower's Accounts and accounts receivable at
          Bank's sole and exclusive discretion and without notification and
          authorization from Borrower.

               (L) Maintain at all times an EBITDA of not less than One Dollar
          ($1.00), to be tested on a monthly and quarterly basis, except that
          Borrower may suffer one (1) monthly EBITDA loss per quarter provided
          that such loss does not exceed Two Hundred Thousand Dollars
          ($200,000.00).

               (M) In order to permit Bank to monitor Borrower's financial
          performance and condition, Borrower shall maintain Borrower's primary
          depository and operating accounts and securities accounts with Bank,
          which accounts shall represent at least seventy-five percent (75.0%)
          of the dollar value of the Borrower's depository, operating and
          securities accounts at all financial institutions within four (4)
          months of the Effective Date. Borrower shall identify to Bank, in
          writing, any bank or securities account opened by Borrower with any
          institution other than Bank.

               (N) Provide Bank with an aged listing of accounts receivable and
          accounts payable on a daily basis.

     6.4. Negative Covenants. Borrower will not do any of the following without
Bank's prior written consent:

               (A) Assign, lease, transfer, sell or grant, or permit any lien or
          security interest in the Collateral, except for transfers (i) of
          inventory in the ordinary course of business, and (ii) of worn-out or
          obsolete

                                       -9-

<PAGE>

          equipment, and (iii) certain liens in favor of GMAC and ORIX, which
          are subject to the Letter Agreement and the Intercreditor Agreement
          (defined below).

               (B) Except as provided in the Perfection Certificate, create,
          incur, assume, or be liable for any indebtedness exceeding Two Million
          Five Hundred Thousand Dollars ($2,500,000.00) (unsecured) in the
          aggregate outstanding at any time, excluding capital and operating
          leases.

               (C) Directly or indirectly enter into or permit to exist any
          material transaction with any affiliate or Subsidiary of Borrower or
          make any distributions to any affiliate or Subsidiary, except for
          transactions that are in the ordinary course of Borrower's business,
          upon fair and reasonable terms that are no less favorable to Borrower
          than would be obtained in an arm's length transaction with a
          nonaffiliated person.

               (D) Merge or consolidate, or permit any of its Subsidiaries to
          merge or consolidate, with any other Person, or acquire, or permit any
          of its Subsidiaries to acquire, all or substantially all of the
          capital stock or property of another Person.

               (E) Become an "investment company" or a company controlled by an
          "investment company," under the Investment Company Act of 1940 or
          undertake as one of its important activities extending credit to
          purchase or carry margin stock, or use the proceeds of any Advance for
          that purpose; fail to meet the minimum funding requirements of ERISA,
          permit a Reportable Event or Prohibited Transaction, as defined in
          ERISA, to occur; fail to comply with the Federal Fair Labor Standards
          Act or violate any other law or regulation, or permit any of its
          subsidiaries to do so.

               (F) Relocate its principal executive office or add any new
          offices or business locations or keep any Collateral in any additional
          locations, or (ii) change its state of formation, or (ii) change its
          organizational structure, or (iv) change its legal name, or (v) change
          any organizational number (if any) assigned by its state of formation.
          Notwithstanding the foregoing, the Borrower hereby consents to the
          relocation by Borrower of its principal executive office to any of the
          following states, provided the Borrower provides the Bank with prior
          written notice with the specific change in location: New Jersey,
          Connecticut, Virginia, and New York.

               (G) Keep any Collateral in the possession of any third party
          bailee (such as at a warehouse). In the event that Borrower, after the
          date hereof, intends to store or otherwise deliver any Collateral to
          such a bailee, then Borrower shall receive the prior written consent
          of Bank and such bailee must acknowledge in writing that the bailee is
          holding such Collateral for the benefit of Bank.

               (H) Borrower agrees that any disposition of the Collateral in
          violation of this Agreement, by either the Borrower or any other
          Person, shall be deemed to violate the rights of the Bank under the
          Code.

7. Adjustments. If any Account Debtor asserts a discount, allowance, return,
offset, defense, warranty claim, or the like on a Financed Receivable (an
"Adjustment") or if Borrower breaches any of the representations, warranties or
covenants set forth in Section 6, Borrower will promptly advise Bank.

8. Security Interest. Borrower grants Bank a continuing security interest in all
presently existing and later acquired Collateral to secure all Obligations and
performance of each of Borrower's duties under this Agreement. Any security
interest shall be a first priority security interest in the Collateral. The
Borrower and the Bank have entered into an Intercreditor Agreement with ORIX
(the Intercreditor Agreement"). After an Event of Default, to the extent
Obligations are outstanding or Advances have been requested, Bank may place a
"hold" on any deposit account pledged as Collateral. In the event that the
Borrower refinances its indebtedness to ORIX with another lender satisfactory to
Bank, Bank hereby agrees to enter into a similar Intercreditor Agreement with
such other lender.

9. Events of Default. Any one or more of the following is an Event of Default.

                                      -10-

<PAGE>

               (A) Borrower fails to pay any amount owed to Bank within three
          (3) days of when due;

               (B) Borrower files or has filed against it any Insolvency
          Proceedings or any assignment for the benefit of creditors, or
          appointment of a receiver or custodian for any of its assets;

               (C) Borrower becomes insolvent or is generally not paying its
          debts as they become due:

               (D) Any involuntary lien, garnishment, attachment attaches to the
          Financed Receivables or any Collateral or the service of process upon
          Bank seeking to attach, by mesne (intervening) or trustee process any
          funds of Borrower on deposit with Bank;

               (E) Borrower breaches any covenant, agreement, warranty, or
          representation set forth in this Agreement or any other agreement
          between Borrower and Bank is an immediate Event of Default;

               (F) Borrower is in default under any document, instrument or
          agreement evidencing any debt, obligation or liability in favor of
          Bank its affiliates or vendors regardless of whether the debt,
          obligation or liability is direct or indirect, primary or secondary,
          or fixed or contingent and the third party either accelerates the
          obligations thereunder or exercises any of its rights against the
          Collateral;

               (G) An event of default occurs under any guaranty of the
          Obligations or any material provision of any guaranty is not valid or
          enforceable or a guaranty is repudiated or terminated;

               (H) A material default or Event of Default occurs under any
          agreement between Borrower and any creditor of Borrower that signed a
          subordination agreement with Bank;

               (I) Any creditor that has signed a subordination agreement with
          Bank breaches any material terms of the subordination or intercreditor
          agreement;

               (J) An event of Default occurs under any agreement with respect
          to the loan arrangement between Borrower and ORIX, or any related
          Person; or

               (K) Any of the following occurs, in the good faith judgment of
          Bank: (i) a material impairment in the perfection or priority of
          Bank's security interest in the Collateral or in the value of such
          Collateral; or (ii) a material adverse change in the business,
          operations, or condition (financial or otherwise) of the Borrower
          occurs; or (iii) a material impairment of the prospect of repayment of
          any portion of the Obligations.

10. Remedies

     10.1. Remedies Upon Default. When an Event of Default occurs: (1) Bank may
stop financing receivables or extending credit to Borrower: (2) at Bank's option
and on demand, all or a portion of the Obligations (or, for to an Event of
Default described in Section 9(B), automatically and without demand) are due and
payable in full; (3) the Bank may apply to the Obligations any (i) balances and
deposits of Borrower it holds, or (ii) any amount held by Bank owing to or for
the credit or the account of Borrower; (4) Bank may exercise all rights and
remedies under this Agreement and applicable law, including those of a secured
party under the Code, power of attorney rights in Section 5 for the Collateral,
and the right to ship, reclaim, recover, store, finish, maintain, repair,
prepare for sale, advertise for sale, collect, dispose of, sell, lease, use, and
realize upon all Financed Receivables and Collateral in any commercial manner;
and (5) Bank may make any payments and do any acts it considers necessary or
reasonable to protect its security interest in the Collateral. Borrower shall
assemble the Collateral if Bank requests and make it available as Bank
designates. Bank may enter premises where the Collateral is located, take and
maintain possession of any part of the Collateral, and pay, purchase, contest,
or compromise any lien which appears to be prior or superior to its security
interest and pay all expenses incurred. Borrower grants Bank a license to enter
and occupy

                                      -11-

<PAGE>

any of its premises, without charge, to exercise any of Bank's rights or
remedies. Borrower agrees that any notice of sale required to be given to
Borrower is deemed given if at least five (5) days before the sale may be held.

     10.2. Demand Waiver. Borrower waives demand, notice of default or dishonor,
notice of payment and nonpayment, notice of any default, nonpayment at maturity,
release, compromise, settlement, extension, or renewal of accounts, documents,
instruments, chattel paper, and guaranties held by Bank on which Borrower is
liable.

     10.3. Default Rate. After the occurrence of an Event of Default, all
Obligations shall accrue interest at the Applicable Rate plus two one half
percent (2.5%) per annum.

11. Fees, Costs and Expenses. The Borrower will pay on demand all reasonable
fees, costs and expenses (including attorney's and professionals fees with costs
and expenses) that Bank incurs from: (a) preparing, negotiating, administering,
and enforcing this Agreement or related agreement, including any amendments,
waivers or consents; (b) any litigation or dispute relating to the Financed
Receivables, the Collateral, this Agreement or any other agreement; (c)
enforcing any rights against Borrower or any guarantor, or any Account Debtor;
(d) protecting or enforcing its interest in the Financed Receivables or other
Collateral, (e) collecting the Financed Receivables and the Obligations; and (f)
any bankruptcy case or insolvency proceeding involving Borrower, any Financed
Receivable, the Collateral, any Account Debtor.

12. Choice of Law, Jury Trial Waiver. This Agreement shall be construed,
governed, and enforced pursuant to the laws (without regard to conflict of law
principles) of The Commonwealth of Massachusetts. Borrower and Bank each submits
to the exclusive jurisdiction of the State and Federal courts in Suffolk County,
Massachusetts.

BORROWER AND BANK EACH WAIVE THEIR RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE
OF ACTION ARISING OUT OF OR BASED UPON THIS AGREEMENT OR ANY CONTEMPLATED
TRANSACTION, INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER CLAIMS. THIS
WAIVER IS A MATERIAL INDUCEMENT FOR BOTH PARTIES TO ENTER INTO THIS AGREEMENT.
EACH PARTY HAS REVIEWED THIS WAIVER WITH ITS COUNSEL.

13. Notices. Notices or demands by either party about this Agreement must be in
writing and personally delivered or sent (i) by an overnight delivery service,
or (ii) by certified mail postage prepaid return receipt requested, and by FAX
to the addresses listed at the beginning of this Agreement. A party may change
notice address by written notice to the other party.

14. General Provisions.

     14.1. Successors and Assigns. This Agreement binds and is for the benefit
of successors and permitted assigns of each party. Borrower may not assign this
Agreement or any rights under it without Bank's prior written consent which may
be granted or withheld in Bank's discretion. Bank may, without the consent of or
notice to Borrower, sell, transfer, or grant participation in any part of Bank's
obligations, rights or benefits under this Agreement.

     14.2. Indemnification. Borrower will indemnify, defend and hold harmless
Bank and its officers, employees, and agents against: (a) obligations, demands,
claims, and liabilities asserted by any other party in connection with the
transactions contemplated by this Agreement; and (b) losses or expenses
incurred, or paid by Bank from or consequential to transactions between Bank and
Borrower (including reasonable attorneys fees and expenses), except for losses
caused by Bank's gross negligence or willful misconduct.

     14.3. Right of Set-Off. Borrower and any guarantor hereby grant to Bank, a
lien, security interest and right of setoff as security for all Obligations to
Bank, whether now existing or hereafter arising upon and against all deposits,
credits, collateral and property, now or hereafter in the possession, custody,
safekeeping or control of Bank or any entity under the control of Silicon Valley
Bank or in transit to any of them. At any time after the occurrence and during
the continuance of an Event of Default, without demand or notice, Bank may set
off the same or any part

                                      -12-

<PAGE>

thereof and apply the same to any liability or obligation of Borrower and any
guarantor even though unmatured and regardless of the adequacy of any other
collateral securing the Obligations. ANY AND ALL RIGHTS TO REQUIRE BANK TO
EXERCISE ITS RIGHTS OR REMEDIES WITH RESPECT TO ANY OTHER COLLATERAL WHICH
SECURES THE OBLIGATIONS, PRIOR TO EXERCISING ITS RIGHT OF SETOFF WITH RESPECT TO
SUCH DEPOSITS, CREDITS OR OTHER PROPERTY OF THE BORROWER OR ANY GUARANTOR, ARE
HEREBY KNOWINGLY, VOLUNTARILY AND IRREVOCABLY WAIVED.

     14.4. Time of Essence. Time is of the essence for performance of all
obligations in this Agreement.

     14.5. Application of Funds. Borrower agrees that any disposition of the
Collateral in violation of this Agreement, by either the Borrower or any other
Person, shall be deemed to violate the rights of the Bank under the Code.

     14.6. Severability of Provision. Each provision of this Agreement is
severable from every other provision in determining the enforceability of any
provision.

     14.7. Amendments in Writing, Integration. All amendments to this Agreement
must be in writing. This Agreement is the entire agreement about this subject
matter and supersedes prior negotiations or agreements.

     14.8. Counterparts. This Agreement may be executed in any number of
counterparts and by different parties on separate counterparts and when executed
and delivered are one Agreement.

     14.9. Remedies Cumulative. Bank's rights and remedies under this Agreement,
or any other documents, instruments and agreement by and between Borrower and
Bank are cumulative. Bank has all rights and remedies provided under the Code,
by law, or in equity. Bank's exercise of one right or remedy is not an election,
and Bank's waiver of any Event of Default is not continuing waiver. Bank's delay
is not a waiver, election, or acquiescence. No waiver hereunder shall be
effective unless signed by Bank and then is only effective for the specific
instance and purpose for which it was given.

     14.10. Survival. All covenants, representations are warranties made in this
Agreement continue in force while any Financed Receivable amount remains
outstanding. Borrower's Indemnification obligations survive until all statutes
of limitations for actions that may be brought against Bank have run.

     14.11. Confidentiality. Bank will use the same degree of care handling
Borrower's confidential information that it uses for its own confidential
information, but may disclose information: (i) to its subsidiaries or affiliates
in connection with their business with Borrower; (ii) to prospective transferees
or purchasers of any interest in the Agreement; (iii) as required by law,
regulation, subpoena, or other order; (iv) as required in connection with an
examination or audit; and (v) as it considers appropriate exercising the
remedies under this Agreement. Confidential information does not include
information that is either: (a) in the public domain or in Bank's possession
when disclosed, or becomes part of the public domain after disclosure to Bank;
or (b) disclosed to Bank by third party, if Bank does not have reason to know
that the third party is prohibited from disclosing the information.

     14.12. Other Agreements. This Agreement may not adversely affect Banks
rights under any other document or agreement. If there is a conflict between
this Agreement and any agreement between Borrower and Bank, Bank may determine
in its sole discretion which provision applies. Borrower acknowledges that any
security agreements, liens and/or security interests securing payment of
Borrower's Obligations also secure Borrower's Obligations under this Agreement
and are not adversely affected by this Agreement. Additionally, (a) any
Collateral under other agreements or documents between Borrower and Bank secures
Borrowers Obligations under Agreement and (b) a default by Borrower under this
Agreement is a default under agreements between Borrower and Bank.

     EXECUTED under seal as of the date first written above.

                                      -13-

<PAGE>

ARBINET-THEXCHANGE, INC.

By  Peter P. Sach
   ----------------------------------
Title CAO & Treasurer

SILICON VALLEY BANK

By  Authorized Representative
   ----------------------------------
Title SVP

                                      -14-

<PAGE>

                                    EXHIBIT A

The Collateral consists of all of Borrower's right, title and interest in and to
the following:

     All goods, equipment, inventory, contract rights or rights to payment of
money, leases, license agreements, franchise agreements, general intangibles
(including payment intangibles), accounts (including health-care receivables),
documents, instruments (including any promissory notes), chattel paper (whether
tangible or electronic), cash, deposit accounts, fixtures, letters of credit
rights (whether or not the letter of credit is evidenced by a writing),
commercial tort claims, securities, and all other investment property supportive
obligations, and financial assets, whether now owned or hereafter acquired,
wherever located; and

     Any copyright rights, copyright applications, copyright registrations and
like protections in each work of authorship and derivative work, whether
published or unpublished, now owned or later acquired; any patents. trademarks,
service marks and applications therefor; trade styles, trade names, any trade
secret rights, including any rights to unpatented inventions, know-how,
operating manuals, license rights and agreement and confidential information,
now owned or hereafter acquired; or any claims for damages by way of any past,
present and future infringement of any of the foregoing; and

     All Borrower's Books relating to the foregoing and any and all claims,
rights and interests in any of the above and all substitutions for, additions,
attachments, accessories, accessions and improvements to and replacements,
products, proceeds and insurance proceeds of any or all of the foregoing.

                                      -15-

<PAGE>

                                   Exhibit "B"

                               SILICON VALLEY BANK
                           SPECIALTY FINANCE DIVISION

                             Compliance Certificate

I, as authorized officer of ARBINET-THEXCHANGE, INC.
                                                     -----------------
("Borrower") certify under the Accounts Receivable Financing Agreement (the
"Agreement") between Borrower and Silicon Valley Bank ("Bank") as follows.

Borrower represents and warrants for each Financed Receivable:

          It is the owner with legal right to sell, transfer and assign it;

          The correct amount is on the Invoice Transmittal and is not disputed;

          Payment is not contingent on any obligation or contract and it has
fulfilled all its obligations as of the Invoice Transmittal date;

          It is based on an actual sale and delivery of goods and/or services
rendered, due to Borrower, it is not past due or in default, has not been
previously sold, assigned, transferred, or pledged and is free of any liens,
security interests and encumbrances;

          There are no defenses, offsets, counterclaims or agreements for which
the Account Debtor may claim any deduction or discount;

          It reasonably believes no Account Debtor is insolvent or subject to
any Insolvency Proceedings;

          It has not filed or had filed against it proceedings and does not
anticipate any filing;

          Bank has the right to endorse and/ or require Borrower to endorse all
payments received on Financed Receivables and all proceeds of Collateral; and

          No representation, warranty or other statement of Borrower in any
certificate or written statement given to Bank contains any untrue statement of
a material fact or omits to state a material fact necessary to make the
statement contained in the certificates or statement not misleading.

          Additionally, Borrower represents and warrants as follows:

          Borrower is duly existing and in good standing in its state of
formation and qualified and licensed to do business in, and in good standing in,
any state in which the conduct of its business or its ownership of property
requires that it be qualified. The execution, delivery and performance of this
Agreement has been duly authorized, and do not conflict with Borrower's
formations documents, nor constitute an Event of Default under any material
agreement by which Borrower is bound. Borrower is not in default under any
agreement to which or by which it is bound.

          Borrower has good title to the Collateral. All inventory is in all
material respects of good and marketable quality, and free from material
defects.

                                      -16-

<PAGE>

          Borrower is not an "investment company" or a company "controlled" by
an "investment company" under the Investment Company Act. Borrower is not
engaged as one of its important activities in extending credit for margin stock
(under Regulations X, T and U of the Federal Reserve Board of Governors).
Borrower has complied with the Federal Fair Labor Standards Act. Borrower has
not violated any laws, ordinances or rules. None of Borrower's properties or
assets has been used by Borrower, to the best of Borrower's knowledge, by
previous persons, in disposing, producing, storing, treating, or transporting
any hazardous substance other than legally. Borrower has timely filed all
required tax returns and paid, or made adequate provision to pay, all taxes.
Borrower has obtained all consents, approvals and authorizations of, made all
declarations or filings with, and given all notices to, all government
authorities that are necessary to continue its business as currently conducted.

          All representations and warranties in the Agreement are true and
correct in all material respects on this date.

Sincerely,

-------------------------------------
SIGNATURE

-------------------------------------
TITLE

-------------------------------------
DATE

                                      -17-

<PAGE>

                             INTERCREDITOR AGREEMENT

This INTERCREDITOR AGREEMENT is entered into between SILICON VALLEY BANK
("SVB"), a California-chartered bank, with its principal place of business at
3003 Tasman Drive, Santa Clara, California 95054 and with a loan production
office located at One Newton Executive Park, Suite 200, 2221 Washington Street,
Newton, Massachusetts 02462, doing business under the name "Silicon Valley
East", and ORIX MERCHANT BANKING LLC ("ORIX"), with its principal place of
business at 1177 Avenue of the Americas, 10th Floor, New York, New York 10036 on
February 3, 2003.

                                    RECITALS

     A. ARBINET-THEXCHANGE, INC. ("Company") and SVB have entered into an
Accounts Receivable Financing Agreement dated as of February 3, 2003 (as amended
from time to time, the "SVB Agreement"). The SVB Agreement and the documents
executed in connection therewith are referred to in this Agreement as the "SVB
Documents." All of the Company's present and future indebtedness, liabilities
and obligations under or in connection with the SVB Documents are referred to in
this Agreement collectively as the "SVB Debt." SVB and ORIX are sometimes
referred to herein as the "Secured Parties."

     B. The Company and ORIX have entered into a Loan and Security Agreement
dated January 31, 2002 (as amended from time to time, the "ORIX Loan
Agreement"). The ORIX Loan Agreement and the documents executed in connection
therewith are referred to in this Agreement as the "ORIX Loan Documents." All of
the Company's present and future indebtedness, liabilities and obligations under
or in connections with the ORIX Loan Documents are referred to in this Agreement
collectively as the "ORIX Debt."

     The Parties agree as follows:

     1. Definitions.

          (a) As used in this Agreement, "SVB Priority Collateral" means the
following: (i) all present and future accounts arising out of or relating to the
sale of the Company's goods or rendition of services (including without
limitation those evidenced by instruments or chattel paper) (collectively, the
"Accounts"), and (ii) all goods which gave rise to an Accounts which is returned
by the purchaser and all other returned or repossessed goods, and (iii) all
rights as an unpaid vendor, and (iv) to the extent necessary in order to enable
SVB to collect any Accounts, all of the Company's contract rights, documents,
and general intangibles, and (v) all books and records (including, without
limitation, credit files, computer programs, print-outs, and other computer
materials and records) relating to the foregoing, and (vi) and any other assets
of the Company (including assets of the Company which, under the Code, would
constitute accounts, instruments, documents, chattel paper, supporting
obligations, letter of credit rights and general intangibles, as such terms are
defined under the Code) to the extent such assets are proceeds of, are
collateral for, or are necessary to collect or otherwise payment of, any of the
Company's rights to payments that are due from Company's member's by reason of
member's purchase of telecommunications network capacity from other members of
the Company through the trading exchange provided by the Company, and (vii) all
proceeds and insurance proceeds of the foregoing, and (viii) all warranty claims
and other claims and rights relating to the foregoing, and (ix) all cash
collateral, depository, operating and /or securities accounts of the Company
maintained with SVB, with the exception of those accounts in Section 2(c) and
Section 2(d) below.

                                      -1-

<PAGE>

          (b) As used in this Agreement, "ORIX Priority Collateral" means the
following: all assets of the Company other than the SVB Priority Collateral,
including without limitation the collateral described on Exhibit A hereto, and
all proceeds and insurance proceeds thereof and all warranty claims and other
claims and rights relating thereto (but not including the SVB Priority
Collateral). Without limiting the foregoing, ORIX Priority Collateral includes
all Intellectual Property (as defined in Exhibit A hereto).

          (c) As used in this Agreement, "Collateral" shall mean SVB Priority
Collateral and ORIX Priority Collateral

     2. Priorities.

          (a) All security interests now or hereafter acquired by SVB in the SVB
Priority Collateral shall at all times be prior and superior to all security
interests, ownership interests and other interests and claims now held or
hereafter acquired by ORIX in the SVB Priority Collateral.

          (b) All security interests now or hereafter acquired by ORIX in the
ORIX Priority Collateral shall at all times be prior and superior to all
security interests, ownership interests, and other interests or claims now held
or hereafter acquired by SVB in the ORIX Priority Collateral.

          (c) ORIX shall have a first priority security interest with respect to
the following securities account maintained by the Company at SVB Securities, a
Division of Alliant Partners, with its principal place of business at 3003
Tasman Drive, Santa Clara, CA 95054: 88602820. SVB shall have a second priority
security interest with respect to such securities account. ORIX and SVB shall
enter into control agreements with SVB Securities regarding such account.

          (d) ORIX shall have a first priority security interest with respect to
the following operating account maintained by the Company at SVB: 3300388415.
SVB shall have a second priority security interest with respect to such
operating account. ORIX and SVB shall enter into a control agreement regarding
such account.

          (e) The priorities specified in this Agreement shall be applicable
irrespective of the time or order of attachment or perfection of any security
interest or the time or order of filing of any financing statements or other
documents, or the giving of any notices of purchase money security interests or
other notices, or possession of any Collateral, or any statutes, rules or law,
or court decisions to the contrary. The subordinations and priorities specified
in this Agreement are expressly conditioned upon the nonavoidability and
perfection of the security interest to which another security interest is
subordinated, and if the security interest to which another security interest is
subordinated is not perfected or is avoidable, for any reason, then the
subordinations and relative priority provided for in this Agreement shall not be
effective as to the particular Collateral that is the subject of the unperfected
or avoidable security interest.

     3. Proceeds of Liquidation

          (a) The proceeds of any liquidation of the SVB Priority Collateral
shall be distributed to the extent available in the following order:

               First, to SVB up to the aggregate amount of all outstanding
          Obligations (as defined in the SVB Agreement) owing to SVB from the
          Company;

                                       -2-

<PAGE>

               Second to ORIX up to the aggregate amount of all outstanding
          Obligations (as defined in the ORIX Loan Agreement) owing to ORIX from
          the Company; and

               Third, to the Company, its successors and assigns, or to
          whomsoever may be lawfully entitled to receive the same.

          (b) The proceeds of any liquidation of the ORIX Priority Collateral
shall be distributed to the extent available in the following order:

               First, to ORIX up to the aggregate amount of all outstanding
          Obligations (as defined in the ORIX Loan Agreement) owing to ORIX from
          the Company;

               Second, to SVB up to the aggregate amount of all outstanding
          Obligations (as defined in the SVB Agreement) owing to SVB from the
          Company: and

               Third, to the Company, its successors and assigns, or to
          whomsoever may be lawfully entitled to receive the same.

     4. Secured Parties' Rights; Consent. Each of the Secured Parties may be
granted a security interest in all assets of the Company, including the
Collateral. SVB and ORIX each agree that the other may at any time, and from
time to time, without the consent of the other Secured Party and without notice
to the other Secured Party, renew or extend any of the indebtedness, liabilities
or obligations owing to it from the Company (the "Secured Obligations") or that
of any other person at any time directly or indirectly liable for the payment of
any Secured Obligations, accept partial payments of the Secured Obligations,
settle, release (by operation of law or otherwise), compound, compromise,
collect or liquidate any of the Secured Obligations, release exchange, fail to
perfect, delay the perfection of, fail to resort to, or realize upon any
Collateral, change, alter or vary the interest charge on, or any other terms or
provisions of the Secured Obligations or any present or future instrument,
document or agreement with the Company, and take any other action or omit to
take any other action with respect to its Secured Obligations as it deems
necessary or advisable in its sole discretion. SVB and ORIX each waive any right
to require the other to marshal any Collateral or other assets in favor of it or
against or in payment of any or all of its Secured Obligations. ORIX hereby
waives any consent or approval relating to, and agrees to provide any further
documentation necessary for, SVB's exercise of any rights and enforcement of any
remedies under or with respect to any of the SVB Priority Collateral. SVB hereby
waives any consent or approval relating to, and agrees to provide any further
documentation necessary for, ORIX's exercise of any rights and enforcement of
any remedies under or with respect to any of the ORIX Priority Collateral. SVB
and ORIX each consent to the grant by the Company to the other of a security
interest in the Collateral.

     5. Remedies.

          (a) For so long the SVB Documents are in effect, ORIX shall not
collect, take possession of, foreclose upon, or exercise any other rights or
remedies with respect to SVB Priority Collateral, judicially or nonjudicially,
or attempt to do any of the foregoing, without the prior written consent of SVB,
which shall be a matter of SVB's sole discretion.

                                       -3-

<PAGE>

          (b) For so long as the ORIX Loan Documents are in effect, SVB shall
not collect, take possession of, foreclose upon, or exercise any other rights or
remedies with respect to ORIX Priority Collateral, judicially or nonjudicially,
or attempt to do any of the foregoing, without the prior written consent of
ORIX, which shall be a matter of ORIX's sole discretion.

     6. Reports. Upon written request from time to time, each party shall give
the other party (i) a statement as to the outstanding balance of the SVB Debt or
ORIX Debt (as the case may be), and (ii) copies of any written statements
provided by the Secured Party to the Company.

     7. Insurance. The Secured Party having a senior security interest or lien
in the collateral shall, subject to such Secured Party's rights under its
agreements with Company, have the sole and exclusive right, as against the other
Secured Party, to adjust settlement of any insurance policy in the event of any
loss affecting such Collateral. All proceeds of such policy shall be paid to the
Secured Party having the senior security interest as set forth in this
Agreement. Subject to applicable law, after payment of such senior Secured
Party's claim and all expenses of collection, including reasonable attorney's
fees and other costs, fees and expenses, any remaining proceeds shall be
promptly remitted to the other Secured Party for application to the Secured
Obligations owing to it.

     8. Notices of Default and Termination. ORIX shall use commercially
reasonable efforts to give SVB (i) a copy of any written notice of the
occurrence or existence of an Event of Default under any of the ORIX Loan
Documents sent to the Company, simultaneously with the sending of such notice to
the Company, and (ii) written notice of any termination of the ORIX Loan
Agreement. SVB shall use commercially reasonable efforts to give ORIX (i) a copy
of any written notice of the occurrence or existence of an event of default
under any of the SVB Documents sent to the Company, simultaneously with the
sending of such notice to the Company, and (ii) written notice of any
termination of the SVB Agreement.

     9. Revivor. If, after payment of ORIX Debt, the Company thereafter becomes
liable to ORIX on account to the ORIX Debt, or any payment made on the ORIX Debt
shall for any reason be required to be returned or refunded by ORIX, this
Agreement shall thereupon in all respects become effective with respect to such
subsequent or reinstated ORIX Debt, without the necessity of any further act or
agreement between Secured Parties. If, after payment of SVB Debt, the Company
thereafter becomes liable to SVB on account of the SVB Debt, or any payment made
on the SVB Debt shall for any reason be required to be returned or refunded by
SVB, this Agreement shall thereupon in all respects become effective with
respect to such subsequent or reinstated SVB Debt, without the necessity of any
further act or agreement between Secured Parties.

     10. Notices. Unless otherwise provided in this Agreement, all notices or
demands by any party relating to this Agreement or any other agreement entered
into in connection herewith shall be in writing and (except informal documents
which may be sent by first-class mail, postage prepaid) shall be personally
delivered or sent by certified mail, postage prepaid, return receipt requested,
or by facsimile, or by reputable overnight delivery service, to the Secured
Parties, at their respective addresses or fax numbers set forth below:

If to SVB:        SILICON VALLEY BANK
                  One Newton Executive Park, Suite 200
                  2221 Washington Street
                  Newton, Massachusetts 02462

                                       -4-

<PAGE>

                  Attn: Mr. David Reich, Senior Vice President
                  Fax: (617) 969-5965

With a copy to:   Riemer & Braunstein LLP
                  Three Center Plaza, 6th Floor
                  Boston, Massachusetts 02108
                  Attn: David A. Ephraim, Esquire
                  Fax: (617) 880-3456

If to ORIX:       ORIX VENTURE FINANCE, a division of
                  ORIX MERCHANT BANKING LLC
                  1177 Avenue of the Americas, 10th Floor
                  New York, New York 10036
                  Ref: Arbinet-thexchange, Inc.
                  Fax: (212) 739-1701

With a copy to:   ORIX USA CORPORATION
                  1177 Avenue of the Americas, 10th Floor
                  New York, New York 10036
                  Attn: Legal Department
                  Fax: (212) 739-1701

The parties hereto may change the address at which they are to receive notices
hereunder, by notice in writing in the foregoing manner given to the other.

     11. Relationship Of Parties. The relationship between the Secured Parties
is, and at all times shall remain solely that of lenders. Secured Parties shall
not under any circumstances be construed to be partners or joint venturers of
one another; nor shall the Secured Parties under any circumstances be deemed to
be in a relationship of confidence or trust or a fiduciary relationship with one
another, or to owe any fiduciary duty to one another. Secured Parties do not
undertake or assume any responsibility or duty to one another to select, review,
inspect, supervise, pass judgment upon or otherwise inform each other of any
matter in connection with the Company's property, any Collateral held by any
Secured Party or the operations of the Company. Each Secured Party shall rely
entirely on its own judgment with respect to such matters, and any review,
inspection, supervision, exercise of judgment or supply of information
undertaken or assumed by any Secured Party in connection with such matters is
solely for the protection of such Secured Party.

     12. CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER. THIS AGREEMENT SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF
CALIFORNIA, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW. EACH OF THE
SECURED PARTIES HEREBY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE STATE AND
FEDERAL COURTS LOCATED IN THE STATE OF CALIFORNIA. SECURED PARTIES HEREBY WAIVE
THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED
UPON OR ARISING OUT OF ANY OF THE LOAN DOCUMENTS OR ANY OF THE TRANSACTIONS
CONTEMPLATED THEREIN, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY
CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS.

                                       -5-

<PAGE>

     13. Insolvency. This Agreement shall be applicable both before and after
the filing of any petition by or against the Company under the U.S. Bankruptcy
Code and all converted or succeeding cases in respect thereof, and all
references herein to the Company shall be deemed to apply the to the trustee for
the Company and any Company as debtor-in-possession. The relative rights of the
Parties in or to any distributions from or in respect of any of the SVB Priority
Collateral or the ORIX Priority Collateral or proceeds of same, shall continue
after the filing thereof on the same basis prior to the date of the petition,
subject to any court order approving the financing of, or use of cash collateral
by, the Company as debtor-in-possession.

     14. Amendment to Financing Statements. By the execution of this Agreement,
ORIX hereby authorizes SVB to amend any financing statements filed by ORIX
against the Company as follows: "Any security interest or lien that Secured
Party may have in any property of the Debtor is subject to a certain
Intercreditor Agreement by and among the Security Party, the Debtor and Silicon
Valley Bank, notwithstanding the respective dates of attachment or perfection of
the security interest of the Secured Party and Silicon Valley Bank." SVB agrees
to provide a copy of any such amendment to ORIX.

     15. Release of SVB Priority Collateral. ORIX hereby agrees, at the request
and expense of SVB, to release any lien it may have on the SVB Priority
Collateral in order for SVB to obtain payment on such SVB Primary Collateral
from GMAC or any similar entity, and further agrees to prepare and execute an
amendment, prepared and furnished by SVB, to one or more financing statements
then of record with respect to any such SVB Primary Collateral to evidence such
release.

     16. General. Each Secured Party shall execute all such documents and
instruments and take all such actions as the other shall reasonably request in
order to carry out the purposes of this Agreement, including without limitation
appropriate amendments to financing statements in favor of a Secured Party in
order to refer to this Agreement (but this Agreement shall remain fully
effective notwithstanding any failure to execute any additional documents,
instruments, or amendments). Each Secured Party represents and warrants to the
other that it has not heretofore transferred or assigned any financing statement
naming the Company as debtor and it as secured party, and that it will not do so
without first delivering a copy of this Agreement to the proposed transferee or
assignee, and any transfer or assignment shall be subject to all of the terms of
this Agreement. This Agreement is solely for the benefit of Secured Parties and
their successors and assigns, and neither the Company nor any other person
(including any successor-in-interest) shall have any right, benefit, priority or
interest under, or because of the existence of, this Agreement. This Agreement
sets forth in full the terms of agreement between the Secured Parties with
respect to the subject matter hereof, and may not be modified or amended, nor
may any rights hereunder be waived, except in a writing signed by the Secured
Parties. In the event of any litigation between the parties based upon or
arising out of this Agreement, the prevailing party shall be entitled to recover
all of its costs and expenses (including without limitation attorneys' fees)
from the non-prevailing party. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which shall
constitute the same instrument.

                                       -6-

<PAGE>

ORIX MERCHANT BANKING LLC                 SILICON VALLEY BANK

By  /s/ Kevin P. Sheehan                  By /s/ Authorized Representative
   -----------------------------------      -----------------------------------
Title Principal                           Title SVP

                                       -7-

<PAGE>

                         COMPANY'S CONSENT AND AGREEMENT

          The Company consents to the terms of the foregoing Intercreditor
Agreement and agrees not to take actions inconsistent therewith. The company
agrees to execute all such document and instruments and take all such actions as
a Secured Party shall reasonably request in order to carry out the purposes of
the foregoing Agreement. The Company agrees that any default or event of default
by the Company under any present or future instrument or agreement between the
Company and SVB shall constitute a default and event of default under all
present and future instruments and agreements between the Company and ORIX. The
Company further agrees that, at any time and from time to time, the foregoing
Agreement may be altered, modified or amended by SVB and ORIX without notice to
or consent of the Company. The company further agrees that it will immediately
notify ORIX in the event that SVB closes Company's operating account identified
in section 2(d), above.

                                          ARBINET-THEXCHANGE, INC.

                                          By  /s/ Peter P. Sach
                                             -----------------------------------
                                          Title CAO & Treasurer

<PAGE>

                                    Exhibit A

All of the following: all right, title and interest of the Company in and to the
following, whether now owned or hereafter arising or acquired and wherever
located: all Inventory; all Equipment; all Deposit Accounts; all General
Intangibles (including without limitation all Intellectual Property); all
Investment Property; all Other Property; and any and all claims, rights and
interests in any of the above, and all guaranties and security for any of the
above, and all substitutions and replacements for, additions, accessions,
attachments, accessories, and improvements to, and proceeds (including proceeds
of any insurance policies, proceeds of proceeds and claims against third
parties) of, all of the above, and all the Company's books relating to any of
the above; PROVIDED THAT, the foregoing shall not include the SVB Priority
Collateral.

As used herein the following terms have the following meanings:

     "Code" means the Uniform Commercial Code as adopted and in effect in the
     State of California on the date hereof.

     "Deposit Account" means all of the following, now owned and hereafter
     acquired by the Company: all "deposit accounts" as defined in the Code in
     effect on the date hereof with such additions to such terms as may
     hereafter be made, and includes without limitation all general and special
     bank accounts, demand accounts, checking accounts, savings accounts and
     certificates of deposit.

     "Equipment" means all of the following, now owned and hereafter acquired by
     the Company: all "equipment" as defined in the Code in effect on the date
     hereof with such additions to such term as may hereafter be made, and
     includes without limitation all machinery, fixtures, goods, vehicles, and
     any interest in any of the foregoing.

     "General Intangibles" means all of the following, now owned and hereafter
     acquired by the Company: all "general intangibles" as defined in the Code
     in effect on the date hereof with such additions to such term as may
     hereafter be made, and includes without limitation all Intellectual
     Property, Deposit Accounts, royalties, contract rights, goodwill, franchise
     agreements, purchase orders, customer lists, route lists, telephone
     numbers, licenses, permits, domain names, claims, income tax refunds,
     security and other deposits, options to purchase or sell real or personal
     property, rights in all litigation presently or hereafter pending (whether
     in contract, tort or otherwise), insurance policies (including without
     limitation key man, property damage, and business interruption insurance),
     payments of insurance and rights to payment of any kind.

     "Intellectual Property" means all of the following, now owned and hereafter
     acquired by the Company: all (a) copyrights, copyrights rights, copyright
     applications, copyright registrations and like protections in each work of
     authorship and derivative work thereof, whether published or unpublished,
     (b) trade secret rights, including all rights to unpatented inventions and
     know-how, and confidential information; (c) mask work or similar rights
     available for the protection of semiconductor chips; (d) patents, patent
     applications and like protections including without limitation
     improvements, divisions, continuations, renewals, reissues, extensions and
     continuations-in-part of the same; (e) trademarks, servicemarks, trade
     styles, and trade names, whether or not any of the foregoing are
     registered, and all applications to register and registrations of the same
     and like protections, and the entire goodwill of the business of the
     Company connected with and symbolized by any such trademarks; (f) computer
     software and computer software products; (g) designs and design rights; (h)
     technology; (i) all claims for damages by way of past, present and future
     infringement of any of the rights included above; (j) all licenses or other
     rights to use any property or rights of a type described above.

                               Exhibit B - Page 1

<PAGE>

     "Inventory" means all of the following, now owned and hereafter acquired by
     the Company: all "inventory" as defined in the Code in effect on the date
     hereof with such additions to such term as may hereafter be made, and
     includes without limitation all merchandise, raw materials, parts,
     supplies, packing and shipping materials, work in process and finished
     products, including without limitation such inventory as is temporarily out
     of the Company's custody or possession or in transit and including any
     returned goods and any documents of title representing any of the above.

     "Investment Property" means all of the following, now owned and hereafter
     acquired by the Company: all investment property, securities, stocks,
     bonds, debentures, debt securities, partnership interests, limited
     liability company interests, options, security entitlements, securities
     accounts, commodity contracts, commodity accounts, and all financial assets
     held in any securities account or otherwise, wherever located, and all
     other securities of every kind, whether certificated or uncertified.

     "Other Property" means all of the following, now owned and hereafter
     acquired by the Company: all of the following as defined in the Code in
     effect on the date hereof with such additions to such term as may hereafter
     be made, and all rights relating thereto: "documents", "instruments",
     "chattel paper", "letters of credit", "fixtures", and "money", and all
     other tangible and intangible personal property and rights of any other
     kind which are not included in the other items of Collateral, whether or
     not covered by the Code.

                               Exhibit B - Page 2

<PAGE>

                                February 3, 2003

Silicon Valley Bank
One Newton Executive Park
2221 Washington Street, Suite 200
Newton, Massachusetts 02462

          Re: Loan Arrangement with Arbinet-thexchange, Inc.

Gentlemen:

          Reference is made to a certain loan arrangement entered into by and
between ARBINET-THEXCHANGE, INC., a Delaware corporation with its principal
place of business at 75 Broad Street, 20th Floor, New York, New York 10004 (the
"Borrower"), and SILICON VALLEY BANK, a California-chartered bank, with its
principal place of business at 3003 Tasman Drive, Santa Clara, California 95054
and with a loan production office located at One Newton Executive Park, Suite
200, 2221 Washington Street, Newton, Massachusetts 02462, doing business under
the name "Silicon Valley East" ("SVB or the "Primary Lender"), as evidenced by,
among other documents, a certain Accounts Receivable Financing Agreement dated
as of February 3, 2003 (together with all documents executed in connection
therewith or related thereto, as amended, the "AR Agreement").

          Reference is further made to a certain loan arrangement entered into
by and between the Borrower, various other parties, and ORIX USA CORPORATION,
which has assigned its interest therein to ORIX MERCHANT BANKING LLC, with its
principal place of business at 1177 Avenue of the Americas, 10th Floor, New
York, New York 10036 ("ORIX")(ORIX and SVB shall collectively be referred to
herein as the "Lenders"), as evidenced by a certain Loan and Security Agreement
dated as of January 31, 2002 (together with all documents executed in connection
therewith or related thereto, as amended, the "ORIX Agreement").

          Reference is further made to a certain factoring arrangement entered
into by and between the Borrower and GMAC COMMERCIAL FINANCE LLC, a New York
limited liability company with a place of business at 1290 Avenue of the
Americas, New York, New York 10104 ("GMAC") as evidenced by, among other
documents, a certain Factoring Agreement dated as of February 1, 2003 and the
Export Rider thereto (together with all documents executed in connection
therewith or related thereto, as amended, the "Factoring Agreement").

          Whereas, SVB has been granted a perfected security interest in all
assets of the Borrower, including, without limitation, a perfected security
interest in, among other things, the Borrower's accounts; and

<PAGE>

          Whereas, ORIX has been granted a perfected security interest in all
assets of the Borrower, including, without limitation, a perfected security
interest in, among other things, the Borrower's accounts; and

          Whereas, the Borrower has requested consent from the Lenders to enter
into the Factoring Agreement with GMAC.

          Now, therefore, for good and valuable consideration, SVB, GMAC, ORIX
and the Borrower hereby agree as follows:

          1. All assets of the Borrower, including accounts purchased by GMAC
under the Factoring Agreement shall be purchased subject to and subordinate to
the prior security interest In such assets of SVB and of ORIX. As used in this
Agreement, "Account" shall mean all of the Borrower's then existing rights to
payment from a particular member or account debtor (hereinafter, a "Customer")
on account of all unpaid purchases of network capacity by such Customer from
Borrower.

          2. GMAC will not exercise any rights or remedies against the
Borrower's assets that are specifically prohibited pursuant to the terms of this
Agreement.

          3. All payments owing or due to Borrower under the Factoring Agreement
shall be made by GMAC to the Primary Lender, when and if such amounts are due
from GMAC to the Borrower under the Factoring Agreement, notwithstanding any
contrary instructions which may hereafter be issued by Borrower or any party
other than the Primary Lender. Without limiting the foregoing, GMAC shall pay
the Primary Lender the Net Purchase Price of each account. The "Net Purchase
Price" of each Account shall be equal to the "Net Face Amount" of the Account,
as hereinafter calculated, but in no event shall exceed the credit approved
portion thereof determined from time to time in accordance with the Factoring
Agreement. The Net Face Amount of the Account is the gross face amount of each
invoice evidencing the Account, less: (i) discounts offered by Borrower as part
of the payment terms of the Account (which shall be determined by GMAC where
optional terms are given and which shall include any Anticipation Reductions, as
defined below); (ii) any other deductions taken by Customers in accordance with
the payment terms of the invoice; (iii) credits issued by the Borrower; (iv)
allowances granted by Borrower to Customers of any nature; (v) any disputes by
the Customer; and (vi)such portion of the gross face amount of the invoice as
represents a value added tax or other tax which is payable by the Customer to
the Borrower and is to be remitted by Borrower to the taxing authority (the "Tax
Component") except that the Tax Component is to be deducted by GMAC in computing
the Net Purchase Price of an Account only if Borrower is not obligated to remit
the Tax Component to the taxing authority or is entitled to a credit from the
taxing authority for the Tax Component by reason of the fact that Borrower did
not collect the Account directly from the Customer but obtained payment from a
third party as a result of the Customer's financial inability to pay.
"Anticipation Reduction" means a deduction taken by a Customer based on the
Customer's payment of the invoice before maturity whether or not allowed
according to the payment terms of such invoice. In the case of Accounts due from
Customers in countries other than the U.S. and Canada and in which GMAC does not
operate through an agent and Accounts due from domestic

<PAGE>

Customers that are credit approved based on the credit of foreign parents the
Net Purchase Price of the Account shall be 90% of the Net Face Amount of the
Account. Each Lender hereby represents and warrants to GMAC, on behalf of itself
only, and not the other Lender, that while such Lender is the Primary Lender, no
other person or entity has or will have a right to payment of the amounts
payable hereunder superior to such Lender's rights hereunder, and that such
Lender alone will be entitled to such payments and accordingly, each Lender, on
behalf of itself only, and not the other Lender, agrees that it shall hold GMAC
harmless from and against any loss or expense incurred or sustained by GMAC by
reason of the assertion against GMAC of claims by parties asserting that such
person or entity's entitlement to such payments, while such Lender was the
Primary Lender, was superior to that of such Lender. The Lenders are not hereby
agreeing to indemnify GMAC for the wrongful acceptance by the other Lender of
amounts received by such other Lender from GMAC.

          4. In consideration of the payment by GMAC to the Primary Lender of
the Net Purchase Price of an Account, the Lenders shall be deemed to subordinate
any security interest they may have in such Account, up to the amount of the Net
Purchase Price paid by GMAC to the Primary Lender, but the Lenders shall retain
their senior security interest in that portion of the Account due from the
Customer of the Account as exceeds the Net Purchase Price Paid by GMAC to the
Primary Lender. The Lenders shall retain their senior security interest in such
portion of the Account, to secure any amounts which may continue to be owed by
the Borrower to the Lenders. Where GMAC has paid the Net Purchase Price with
respect to a particular Account to the Primary Lender, and notified the Primary
Lender in writing of such payment, subsequent collections on any such Account
shall first be paid to GMAC until the aggregate amount paid to or collected by
GMAC shall equal the Net Purchase Price with respect to the particular Account.
The proceeds of any other collection of any Account (by GMAC, or Primary Lender,
in accordance with Section 6 hereof), shall be paid first to the Lenders, in
accordance with the terms of a certain Intercreditor Agreement dated February 3,
2003 by and between the Lenders. Nothing contained herein shall impose any
liability on the Lenders to (x) reimburse GMAC for payments and collections on
Accounts that are received by the Lenders before the Lenders receive payment of
the Net Purchase Price on any Account; or (y) reimburse GMAC for payments and
collections on Accounts that are received by the Borrower, either directly or in
Borrower's bank accounts, including, without limitation, cash collateral,
lockbox, or other accounts. Nothing contained herein shall obligate the Lenders
to account for each other or make or direct any payments to GMAC or Borrower on
account of monies received by the other Lender.

          5. In the event that the Lenders, in the exercise of their rights
against Borrower, take possession of the books and records of Borrower during
the period while any Accounts purchased by GMAC remain outstanding, the Lenders
shall grant GMAC access to such books and records for the purpose of obtaining
information necessary to collect and enforce such Accounts.

          6. During the period that any Accounts purchased by GMAC are
outstanding, the Lenders shall refrain from enforcing their security interests
in any such Accounts. GMAC and Borrower agree that if the Primary Lender,
following the occurrence of an event of default under

<PAGE>

its loan arrangement with the Borrower (while there are outstanding obligations
under such loan arrangement), instructs GMAC to cease collection efforts with
respect to Accounts due from a specific Customer owing Accounts for which GMAC
has not theretofore paid the Net Purchase Price to the Primary Lender or from
all Customers owing Accounts for which GMAC has not theretofore paid the Net
Purchase Price to the Primary Lender, GMAC shall comply with such request, and
GMAC and Borrower hereby agree that GMAC's Credit Risk (as defined in the
Factoring Agreement) on such Accounts shall be deemed terminated and the Primary
Lender may enforce its security interest in such Accounts. Borrower waives any
and all claims against the Lenders resulting from such termination.

          7. Unless and until SVB provides written notice to the contrary, SVB
shall be the Primary Lender for purposes of this agreement. Upon termination of
the AR Agreement and satisfaction in full of the Obligations (as defined
therein), ORIX shall become the Primary Lender hereunder. GMAC may continue to
consider SVB the Primary Lender in the event that ORIX claims to have become the
Primary Lender but SVB disputes such claim.

          8. Unless otherwise provided hereunder, all notices or demands by any
party relating to this agreement or any other agreement entered into in
connection herewith shall be in writing and (except informal documents which may
be sent by first-class mail, postage prepaid) shall be personally delivered or
sent by certified mail, postage prepaid, return receipt requested, or by
facsimile, or by reputable overnight delivery service, to the parties hereto, at
their respective addresses or fax numbers set forth below:

          If to SVB             SILICON VALLEY BANK
                                One Newton Executive Park, Suite 200
                                2221 Washington Street
                                Newton, Massachusetts 02462
                                Attn: Mr. David Reich, Senior Vice President
                                Fax: (617) 969-5965

          With a copy to:       REIMER & BRAUNSTEIN LLP
                                Three Center Plaza, 6th Floor
                                Boston, Massachusetts 02108
                                Attn: David A. Ephraim, Esquire
                                Fax: (617) 880-3456

          If to ORIX:           ORIX VENTURE FINANCE, a division of
                                ORIX MERCHANT BANKING LLC
                                1177 Avenue of the Americas, 10th Floor
                                New York, New York 10036
                                Ref: Arbinet-thexchange, Inc.
                                Fax: (212) 739-1701

<PAGE>

          With a copy to:       ORIX USA CORPORATION
                                1177 Avenue of the Americas, 10th Floor
                                New York, New York 10036
                                Attn: Legal Department
                                Fax: (212) 739-1701

          If to GMAC:           GMAC COMMERCIAL FINANCE LLC
                                1290 Avenue of the Americas
                                New York, New York 10104
                                Attn: Mr. Frank Imperato
                                Fax: (212) 994-7162

          With a copy to:       OTTERBOURG, STEINDLER,
                                HOUSTON & ROSEN, P.C.
                                230 Park Avenue, 29th Floor
                                New York, New York 10169
                                Attn: Richard Stehl, Esquire
                                Fax: (212) 682-6104

          If to the Borrower:   ARBINET-THEXCHANGE, INC.
                                75 Broad Street, 20th Floor
                                New York, New York 10004
                                Attn: Mr. Michael Lemberg
                                Fax: (917) 320-1895

          With a copy to:       ARBINET-THEXCHANGE, INC.
                                75 Broad Street, 20th Floor
                                New York, New York 10004
                                Attn: Chi K. Eng, Esquire
                                Fax: (917) 320-1895

          The parties hereto may change the address at which they are to receive
notices hereunder, by notice in writing in the foregoing manner given to the
other.

<PAGE>

          This letter shall take effect as a sealed instrument under the laws of
the State of New York as of the date first written above.

                                          Very truly yours,

SILICON VALLEY BANK                       GMAC COMMERCIAL FINANCE LLC

By:  /s/ David Reich                      By:  /s/ Robert J. Higgins
    ----------------------------------        ----------------------------------
Name:  David Reich                        Name: Robert J. Higgins
      --------------------------------
Title:  SVP                               Title: EVP
       -------------------------------

                                          ORIX MERCHANT BANKING LLC

                                          By:  /s/ Kevin P. Sheehan
                                              ----------------------------------
                                          Name: Kevin P. Sheehan
                                          Title: Principal

Agreed to and accepted:

ARBINET-THEXCHANGE, INC.

By: /s/ Peter P. Sach
   ----------------------------------
Name: Peter P. Sach
Title: CAO & Treasurer

<PAGE>

                                                                February 3, 2003

Silicon Valley Bank
One Newton Executive Park
2221 Washington Street, Suite 200
Newton, Massachusetts 02462

          Re: Loan Arrangement with Arbinet-thexchange, Inc.

Gentlemen:

          Reference is made to a certain loan arrangement entered into by and
between ARBINET-THEXCHANGE, INC., a Delaware corporation with its principal
place of business at 75 Broad Street, 20th Floor, New York, New York 10004 (the
"Borrower"), and SILICON VALLEY BANK, a California 95054 and with a loan
production office located at One Newton Executive Park, Suite 200, 2221
Washington Street, Newton, Massachusetts 02462, doing business under the name
"Silicon Valley East" ("SVB" or the "Primary Lender"), as evidenced by, among
other documents, a certain Accounts Receivable Financing Agreement dated as of
February 3, 2003 (together with all documents executed in connection therewith
or related thereto, as amended, the "AR Agreement").

          Reference is further made to a certain loan arrangement entered into
by and between the Borrower, various other parties, and ORIX USA CORPORATION,
which has assigned its interest therein to ORIX MERCHANT BANKING LLC, with its
principal place of business at 1177 Avenue of the Americas, 10th Floor, New
York, New York 10036 ("ORIX")(ORIX and SVB shall collectively be referred to
herein as the "Lenders"), as evidenced by a certain Loan and Security Agreement
dated as of January 31, 2002 (together with all documents executed in connection
therewith or related thereto, as amended, the "ORIX Agreement").

          Reference is further made to a certain factoring arrangement entered
into by and between the Borrower and GMAC COMMERCIAL FINANCE LLC, a New York
limited liability company with its principal place of business at 1290 Avenue of
the Americas, New York, New York 10104 ("GMAC") as evidenced by, among other
documents, a certain Factoring Agreement dated as of February 1, 2003 and the
Export Rider thereto (together with all documents executed in connection
therewith or related thereto, as amended, the "Factoring Agreement").

          Whereas, SVB and ORIX have entered into a certain letter agreement of
even date herewith whereby SVB and ORIX have agreed to the priority of each
other's security interest in the Borrower assets, including certain accounts,
and have consented to Borrower entering into the Factoring Agreement with GMAC;

          Now, therefore, for good and valuable consideration, the Borrower
hereby agrees not to amend the Factoring Agreement without the prior written
consent of SVB and ORIX, which prior written consent shall not be unreasonably
withheld.

<PAGE>

          This letter shall take effect as a sealed instrument under the laws of
the State of New York as of the date first written above.

                                        Very truly yours,

                                        ARBINET-THEXCHANGE, INC.

                                        By: /s/ Peter P. Sach
                                           ------------------------------------
                                        Name: Peter P. Sach
                                        Title: CAO & Treasurer

Agree to and accepted:

SILICON VALLEY BANK                     ORIX MERCHANT BANKING LLC

By:  David Reich                        By: /s/ Kevin P. Sheehan
    --------------------------------       ------------------------------------
Name: Dave Reich                        Name: Kevin P. Sheehan
Title: SVP                              Title: Principal

<PAGE>

                                 SVB Securities

                      Securities Account Control Agreement

Customer:   ARBINET-THEXCHANGE, INC.

Creditor:   ORIX MERCHANT BANKING LLC

Date:       February 3, 2003

This Securities Account Control Agreement entered into as of the above date
(this "Agreement") is among SVB Securities, ("SVBS"), Banc of America Broker
Dealer Services, a division of Banc of America Securities LLC ("BA-BDS" or
"Clearing Broker"), the Customer identifed above ("Customer"), and the Creditor
identified above ("Creditor").

                                    Recitals

          A. Customer has established a securities account or securities
accounts ("Account") with and/or through SVBS and BA-BDS pursuant to a SVB
Securities Client Agreement ("Client Agreement"). The account number and title
for the Account (or Accounts) are identified in Exhibit A to this Agreement.
SVBS acts as the introducing broker. BA-BDS acts as the clearing broker. Both
SVBS and Clearing Broker are securities intermediaries pursuant to Article 8 of
the California Uniform Commercial Code ("CUCC"). Customer maintains in the
Account securities, financial assets and other investment property as defined
under Article 8 and 9 of the CUCC (collectively, the "Securities").

          B. Pursuant to a security agreement or similar agreement identified in
Exhibit A hereto (the "Security Agreement"), Customer has granted to Creditor a
security interest in certain personal property of Customer, including without
limitation (i) the Account; (ii) the Securities, (iii) all dividends and
distributions, whether payable in cash, securities, or other property, in
respect of the Securities, (iv) all of Customer's rights in respect of the
Securities and Account, and (iv) all products, proceeds and revenues of and from
any of the foregoing personal property in sections (i) through (iv)
(collectively, the "Collateral").

          C. SVBS, Clearing Broker, Customer and Creditor are entering into this
Agreement in order to perfect Creditor's security interest in the Collateral and
the Account by means of control pursuant to Article 8 of the CUCC.

                                    Agreement

          The parties hereto hereby agree as follows:

          1. Defined Terms. All terms used in this Agreement which are defined
in the CUCC but are not otherwise defined herein shall have the meanings
assigned to such terms in the CUCC, as in effect as of the date of this
Agreement. While in the Account, all property credited to the Securities will be
treated as financial assets under Article 8 of the CUCC. By this Agreement,
Customer grants to Creditor "control" over the Securities within the meaning of
Section 8106 of the

SVBS Form Dated October 22, 2002

                                        1

<PAGE>

CUCC.

          2. The Securities. SVBS and Clearing Broker represent the Creditor
that, on behalf of Customer, Customer maintains the Securities in the Account.

          3. Acknowledgement of Security Interest. SVBS and Clearing Broker
hereby acknowledge the security interest granted in the Collateral to Creditor
by Customer. Creditor hereby acknowledges the security interest granted in the
Collateral to SVBS and Clearing Broker by Customer pursuant to the Client
Agreement.

          4. Other Control Agreements. SVBS represents and warrants that, other
than any account control agreement listed in Exhibit A hereto, SVBS has executed
no other account control agreement with any other party and SVBS is not
presently obligated to accept any entitlement order from any person other than
the Customer with respect to the Collateral. Clearing Broker represents and
warrants that, other than any account control agreement listed in Exhibit A
hereto, Clearing Broker has executed no other account control agreement with any
party and Clearing Broker is not presently obligated to accept any entitlement
order from any person other than the Customer with respect to the Collateral.

          5. Future Control Agreements. Customer covenants and agrees that it
will not enter an account control agreement with any other party without
Creditor's prior written consent. SVBS agrees that it will not enter into a
control agreement with any other party with respect to the Account without
Creditor's prior written consent. Clearing Broker agrees that it will not enter
into a control agreement with any other party with respect to the Account
without Creditor's prior written consent.

          6. Limitation on SVBS' and Clearing Broker's Rights in the Collateral.
SVBS and Clearing Broker will not attempt to assert control and does not claim
and will not accept any security or other interest in any part of the
Collateral, and SVBS and Clearing Broker will not exercise, enforce or attempt
to enforce on their own behalves any right of setoff against the Collateral, or
otherwise charge or deduct from the Collateral on SVBS' or Clearing Broker's
behalves any amount whatsoever, other than for: security interests, liens,
encumbrances, claims or rights of setoff for the payment of any amounts owed by
Customer to SVBS and/or Clearing Broker arising in connection with SVBS' and
Clearing Broker's customary fees and commissions pursuant to their agreement
with Customer or for the payment for financial assets and securities purchased
for the Account (the "Account Claims"). Customer and Creditor hereby acknowledge
that any security interests, liens, encumbrances, claims or rights of setoff for
the payment of any amounts owed by Customer to SVBS and Clearing Broker arising
in connection with the Account Claims shall at all times be prior to the rights
of Creditor in the Collateral and Securities whether or not Creditor sends to
SBVS a Notice of Exclusive Control described below.

          7. Agreement for Control.

          (a) SVBS and Clearing Broker will comply with all entitlement orders
(including requests to withdraw Collateral from the Account) originated by
Customer with respect to the Collateral, or any portion of the Collateral,
without further consent by Creditor until such time as SVBS receives from
Creditor (in accordance with Section 17 below) a written notice to SVBS that
Creditor is thereby exercising exclusive control over the Account (a "Notice of
Exclusive Control."). The Notice of Exclusive Control must be in the form set
forth in Exhibit B hereto. SVBS or Clearing Broker have no obligation whatsoever
to confirm that Creditor is entitled to send a Notice of Exclusive Control in
connection with the Account or that the Creditor's representative who signs any
Notice of Exclusive Control is authorized to do so. SVBS and Clearing Broker
(upon

SVBS Form Dated October 22, 2002

                                        2

<PAGE>

instruction from SVBS) will, upon SVBS' receipt of such Notice of Exclusive
Control, proceed in accordance with the remainder of this Section 7 even if
Creditor's instructions are contrary to any instructions or demands that
Customer may give to SVBS or Clearing Broker. After SVBS receives a Notice of
Exclusive Control and has had reasonable opportunity to comply with it, but no
later than two (2) Business Days ("Business Days" means days which SVBS is open
to the public for business and are measured in 24 hour increments) after receipt
of the Notice of Exclusive Control (in accordance with Section 17 below), SVBS
and Customer agree that SVBS and Clearing Broker will: (i) cease complying with
entitlement orders or other directions concerning the Account and Collateral
that are originated by Customer or its representatives until such time as SVBS
receives a written notice from Creditor rescinding the Notice of Exclusive
Control; and (ii) comply with the entitlement orders and instructions provided
to SVBS by Creditor without investigating: the reason for any action taken by
Creditor; the amount of any obligations of Customer to Creditor; the validity of
any of Creditor's agreements with Customer; or the existence of any defaults
under such agreements.

          (b) Notwithstanding the foregoing, Creditor agrees that upon receipt
of Creditor's Notice of Exclusive Control, SVBS and Clearing Broker may take all
steps necessary to satisfy or settle any Account Claims, may respond as required
pursuant to the terms of any other account control agreement with respect to
which SVBS believes it previously received a Notice of Exclusive Control or
similar notice, and may respond as required by law to any court or government
order, writ or other legal process received by SVBS or Clearing Broker. Creditor
also agrees that, before SVBS' receipt of Creditor's Notice of Exclusive
Control, SVBS and Clearing Broker may be required to and may respond to (i)
Notices of Exclusive Control or similar notices sent to SVBS by other parties
and (ii) a writ or other similar legal process served on SVBS or Clearing Broker
in connection with the Account and Collateral. SVBS and Clearing Broker agree to
use good faith efforts to promptly notify Creditor if any other party delivers
to SVBS a notice of exclusive control or any party other than Creditor or SVBS
asserts a claim against the Collateral by means of a writ or other similar legal
process, but failure to provide such notice does not constitute a breach of this
Agreement. Customer expressly agrees that SVBS, Clearing Broker and Creditor may
act in accordance with the terms of this Section 7.

          8. Customer Waiver and Authorization. Customer hereby waives any
rights that Customer may have under the Client Agreement to the extent such
rights are inconsistent with the provisions of this Agreement, and hereby
authorizes SVBS and Clearing Broker to comply with all instruction and
entitlement orders delivered by Creditor to SVBS in accordance with the terms of
this Agreement.

          9. Amendments to and Termination of Client Agreement. SVBS, Clearing
Broker and Customer shall not amend, supplement or otherwise modify the Client
Agreement insofar as it pertains to the Collateral without prior written notice
to Creditor. Customer may not terminate the Client Agreement insofar as it
pertains to the Collateral without consent of Creditor. SVBS and Clearing Broker
agree to use good faith efforts to notify Creditor if SVBS or Clearing Broker
terminate the Client Agreement, but SVBS' or Clearing Broker's failure to notify
Creditor shall not be a breach of this Agreement.

          10. Termination of this Agreement. Creditor may terminate this
Agreement by giving SVBS and Customer written notice of termination; provided
that, by giving such notice, Creditor acknowledges that it will thereby be
confirming that, as of the termination date, it will no longer

SVBS Form Dated October 22, 2002

                                        3

<PAGE>

have a perfected security interest in the Account and Securities in the
Collateral which is perfected by control via this Agreement, although Creditor
may continue to have a perfected security interest in the Account by other
means. SVBS and Clearing Broker may terminate this Agreement by giving Creditor
and Customer 30 days prior written notice of termination (unless a shorter
notice period is mandated by applicable law). Customer may only terminate this
Agreement with the written consent of Creditor; provided that, by giving such
notice with Creditor's written consent, both Customer and Creditor acknowledge
that they will thereby be confirming that, as of the termination date, Creditor
will no longer have a perfected security interest in the Collateral which is
perfected by control pursuant to this Agreement, although Creditor may continue
to have a perfected security interest in the Collateral by other means.

          11. Delivery of Account Statements. SVBS and Clearing Broker are
hereby authorized by Customer and agree to send to Creditor at its address for
notices set fort below Creditor's signature block at the end of this Agreement,
concurrently with the sending thereof to Customer, duplicate copies of any and
all monthly statements or reports issued or sent to Customer with respect to the
Collateral and the Account. Until this Agreement is terminated, Customer
authorizes SVBS to disclose to Creditor at Creditor's request any information
concerning Customer's Account and the Securities in the Account, including but
not limited to the identity of any other party with which Customer and SVBS and
Clearing Broker have executed account control agreements or similar agreements.

          12. Responsibility of SVBS Clearing Broker and Creditor. This
Agreement does not create any obligation or duty on the part of SVBS, Clearing
Broker or Creditor other than those expressly set forth herein.

          13. No Waiver. Any forbearance or failure or delay by SVBS, Clearing
Broker or Creditor in exercising any right hereunder shall not be deemed a
waiver thereof and any single or partial exercise of any right shall not
preclude the further exercise thereof.

          14. Amendments. This Agreement and all exhibits attached hereto may be
amended only in writing signed by all parties hereto.

          15. Governing Law. Notwithstanding the terms of any other agreement,
the parties hereto agree that this Agreement shall be governed under and in
accordance with the laws of the State of California. All parties hereto each
submit to the exclusive jurisdiction of the State and Federal courts in Santa
Clara Country, California.

          16. Integration Provision. This Agreement constitutes the entire
agreement among SVBS, Clearing Broker, Customer and Creditor with respect to
Creditor's control over the Collateral and Securities and matters specifically
set forth herein, and all prior communications, whether verbal or written,
between any of the parties hereto with respect to the subject matter hereof
shall be of no further effect or evidentiary value.

          17. Notices.

          (a) Any notice, other than a Notice of Exclusive Control, or other
communication provided for or allowed hereunder shall be in writing and shall be
considered to have been validly given (a) when actually received by the
recipient at the address or facsimile number, if delivered

SVBS Form Dated October 22, 2002

                                        4

<PAGE>

personally (whether by messenger, air courier service or otherwise) or sent by
facsimile to the address or facsimile number identified below the signature of
the applicable party's signature below and addressed to the addressee identified
below the signature of the applicable party's signature below; or (b) 72 hours
after being deposited in the United States mail, registered or certified,
postage prepaid, return receipt requested, if sent to the address and addressee
as set forth below the signature of the applicable party hereto. The addresses
to which notices or other communications are to be given may be changed from
time to time by notice served as provided herein.

          (b) A Notice of Exclusive Control shall be in writing, must be in the
form set forth in Exhibit B hereto, must be delivered to the address listed
below SVBS' signature block at the end of this Agreement, must be delivered to
SVBS via hand delivery, messenger, overnight delivery or facsimile and shall be
considered to have been validly given when actually received, except that a
facsimile will be considered to have been validly given only when acknowledged
in writing by SVBS (SVBS agrees that it will use its good faith effort to
promptly acknowledge receipt of such facsimile). Creditor acknowledges that SVBS
may not be able to respond to a Notice of Exclusive Control pursuant to section
7 above, and Creditor agrees that SVBS will not be held liable for any failure
to respond to a Notice of Exclusive Control, if the Creditor does not deliver
the Notice of Exclusive Control as set forth in this Section 17 or to the
address listed below SVBS' signature block at the end of this Agreement.

          18. Indemnification and Hold Harmless of SVBS and Clearing Broker by
Customer. Customer hereby agrees to indemnify and hold harmless SVBS and
Clearing Broker, and their respective affiliates and their respective directors,
officers, agents and employees (each, an "Indemnified Person") against any and
all claims, causes of action, liabilities, lawsuits, demands and damages (each,
a "Claim") asserted by Creditor or any other party, including without
limitation, any and all court costs and reasonable attorneys' fees, in any way
related to or arising out of or in connection with this Agreement or any action
taken or not taken pursuant hereto, including any claims arising as a result of
SVBS' and Clearing Broker's adherence (or alleged failure of adherence) to the
foregoing instructions including, without limitation, Claims that allegedly
result from SVBS' and/or Clearing Broker's ceasing, based on this Agreement, to
permit withdrawals of or from the Collateral or resulting from SVBS' and/or
Clearing Broker's paying over or delivering all or any part of the Collateral
pursuant to the directions of Creditor; provided that no Indemnified Person
shall be entitled to be indemnified to the extent that such Claims arise from
the Indemnified Person's own gross negligence or willful misconduct. Customer
agrees that SVBS and/or Clearing Broker shall not be liable for delays or errors
occurring by reason of circumstances beyond the control of SVBS or Clearing
Broker, including, without limitation, acts of civil, military, or banking
authorities, national emergencies, market disorder, labor difficulties, fire,
flood or other catastrophes, acts of God, terrorism, insurrection, war, riots,
failure of transportation or equipment, or failure of vendors, communication or
power supply. Clearing Broker shall have no responsibility or liability under
this Agreement to Customer for any acts or omissions by SVBS, its officers,
employees or agents; and SVBS shall have no responsibility or liability under
this Agreement to Customer for any acts or omissions by Clearing Broker, its
officers, employees or agents.

          19. Indemnification and Hold Harmless of SVBS and Clearing Broker by
Creditor. Creditor hereby agrees to indemnify Indemnified Persons against any
and all Claims asserted by Customer or any other party (including, without
limitation, any and all court costs and

SVBS Form Dated October 22, 2002

                                        5

<PAGE>

reasonable attorney's fees) arising directly out of SVB'S and/or Clearing
Broker's adherence or failure of adherence to Creditor's instructions in its
Notice of Exclusive Control, including, without limitation, any Claim that
arises directly out of SVBS' and/or Clearing Broker's ceasing, based on this
Agreement, to permit withdrawals of or from the Collateral or resulting from
SVBS' and/or Clearing Broker's paying over or delivering all or any part of the
Collateral pursuant to Creditor's instructions in its Notice of Exclusive
Control; provided, that no Indemnified Person shall be entitled to be
indemnified (a) to the extent that such Claim results from an Indemnified
Person's gross negligence or willful misconduct; or (b) for any special,
indirect, consequential or punitive damages asserted by Customer if the waiver
in Section 21 of this Agreement is enforceable. Creditor agrees that it will not
hold Indemnified Persons liable for any Claim arising out of or relating to any
Indemnified Person's performance or failure of performance under this Agreement
other than those Claims that result directly from the acts or omissions of the
Indemnified Person which are deemed gross negligence or willful misconduct by a
civil court or other similar judicial body. Clearing Broker shall have no
responsibility or liability under this Agreement to Creditor for any acts or
omissions by SVBS, its officers, employees or agents; and SVBS shall have no
responsibility or liability under this Agreement to Creditor for any acts or
omissions by Clearing Broker, its officers, employees or agents.

          20. Jury Trial Waiver. CUSTOMER, CREDITOR, SVBS AND CLEARING BROKER
EACH WAIVE THEIR RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION ARISING
OUT OF OR BASED UPON THIS AGREEMENT, OR ANY CONTEMPLATED TRANSACTION, INCLUDING
CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER CLAIMS. THIS WAIVER IS A MATERIAL
INDUCEMENT FOR ALL PARTIES TO ENTER INTO THIS AGREEMENT. EACH PARTY HAS REVIEWED
THIS WAIVER WITH ITS COUNSEL.

          21. Waiver. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS
AGREEMENT OR ANYWHERE ELSE, CUSTOMER WAIVES AND AGREES THAT IT SHALL NOT SEEK
FROM SVBS, CLEARING BROKER OR CREDITOR UNDER ANY THEORY OF LIABILITY (INCLUDING
WITHOUT LIMITATION ANY THEORY IN TORTS), ANY SPECIAL, INDIRECT, CONSEQUENTIAL OR
PUNITIVE DAMAGES.

          22. Unpaid Account Claims. Before Creditor exercises exclusive control
over the Account, SVBS and/or Clearing Broker may, in the Ordinary course of
business, debit from the Account any unpaid Account Claims. After Creditor
exercises exclusive control over the Account, if (a) funds are not available in
the Account to pay SVBS and/or Clearing Broker for any Account Claims, and (b)
Customer fails to pay such Account Claims within fifteen (15) Business days of
SVBS' and/or Clearing Broker's written demand therefore, Creditor will pay to
SVBS and/or Clearing Broker, within ten (10) Business days of a written demand
by SVBS and/or Clearing Broker, any amounts owed for an Account Claim and that
is not paid in full by Customer up to the amount of the proceeds received by
Creditor from the Account.

          23. Attorneys' Fees Costs and Expenses. In any action or proceeding
between Customer and SVBS, between Customer and Cleaning Broker, between
Creditor and SVBS, or between Creditor and Clearing Broker, arising out of this
Agreement, the prevailing party will be entitled to recover its reasonable
attorneys' fees and other costs and expenses incurred, in addition to any other
relief to which it may be entitled, whether or not a lawsuit is filed.

SVBS Form Dated October 22, 2002

                                        6

<PAGE>

          24. No Conflict. To the extent that the terms or conditions of this
Agreement are inconsistent with the Client Agreement or any other document,
instrument or agreement between SVBS, Clearing Broker and Customer, the terms
and conditions of this Agreement shall prevail.

          25. Successors. The terms of this Agreement shall be binding upon, and
shall inure to the benefit of, the parties hereto and to each party's respective
successors or heirs and personal representatives. The parties may assign this
Agreement and any rights under the Agreement only if that party's successor or
assign assume all obligations under this Agreement.

          26. Counterparts. This Agreement may be executed in any number of
counterparts and by different parties on separate counterparts, each of which,
when executed and delivered, are an original, and all taken together, are one
Agreement.

          27. Survival. Sections 15 and 18 through 25 shall survive the
termination of this Agreement.

          [The rest of this page intentionally left blank.]

SVBS Form Dated October 22, 2002

                                        7

<PAGE>

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be executed by their duly authorized representatives as of the date first above
written.

CUSTOMER:                               ARBINET THEXCHANGE, INC.

                                        By  /s/ Peter P. Sach
                                           -------------------------------------
                                        Name: Peter P. Sach
                                        Title: CAO & Treasurer

                                        Address for Notices:
                                        75 Broad St. 20th St.
                                        New York NY 10004
                                        Telephone: 917 320 2054
                                        Facsimile: 917 320 1895

CREDITOR:                               ORIX MERCHANT BANKING LLC

                                        By  /s/ Kevin P. Sheehan
                                           -------------------------------------
                                        Name: Kevin P. Sheehan
                                        Title: Principal

                                        Address for Notices:
                                        1177 Avenue of the Americas
                                        New York, New York
                                        Telephone: 212-739-1600
                                        Facsimile: 212-739-1701

SVBS:                                   SVB SECURITIES

                                        By  /s/ Authorized Representative
                                           -------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title: Operations Manager

                                        Address for Notices:
                                        SVB Securities
                                        3003 Tasman Drive
                                        Mail Sort HG250
                                        Santa Clara, CA 95054
                                        Attn: Operations Manager
                                        Telephone: 408-654-7256
                                        Facsimile: 408-496-2407

CLEARING BROKER:                        BANC OF AMERICA SECURITIES LLC

                                        By  /s/ Authorized Representative
                                           -------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

SVBS Form Dated October 22, 2002

                                       -8-

<PAGE>

                                 SVB Securities
                      Securities Account Control Agreement
                                    Exhibit A

1.   Account Title and Number:

     Account Title: Arbinet-Thexchange, Inc.

     Account Number: 88602820

2.   "Security Agreement" (This section to be completed by (Auditor):
     Loan and Security Agreement dated January 31, 2002 between
     Creditor and Customer.

3.   Account Control Agreement Previously Executed by SVB Securities and
     Clearing broker with other Parties Assorting on interest in the Account
     (This Section to be completed by SVBB):

SVBB form Dated October 22, 2002

                                        9

<PAGE>

                                 SVB Securities
                      Securities Account Control Agreement
                                    Exhibit B
                           Notice of Exclusive Control

To:   SVB Securities "(SVBS")
From: ("Creditor") ORIX MERCHANT BANKING LLC
Re:   ("Customer") ARBINET-THEXCHANGE, INC.
Date:
      ------------------------

Pursuant to the Securities Account Control Agreement date
                                                          ------------------
("Agreement") entered among SVBS, Clearing Broker (as defined in the Agreement)
Customer and Creditor, Creditor hereby notifies SVBS of Creditor's exercise of
Creditor's rights under the Agreement and directs SVBS to cease complying with
trading instructions or any entitlement orders originated by Customer or its
agents.

Creditor understands and agrees that SVBS and Clearing Broker shall have no duty
or obligation whatsoever of any kind or character to determine the validity of
Creditor's exercise of its rights under the Agreement or the certification
above, to determine if SVBS and/or Clearing Broker is/are obligated to take
further instructions from Customer, or to determine whether Creditor has a right
to all or part of the Collateral. Creditor hereby agrees to indemnify and hold
harmless SVBS and Clearing Broker, their respective affiliates, and their
respective directors, officers, employees and agents pursuant to the terms of
Section 19 of the Agreement.

Creditor agrees that upon receipt of Creditor's Notice of Exclusive Control,
SVBS and Clearing Broker may exercise their rights and remedies as permitted
under the Agreement.

Creditor hereby certifies that the person executing this Notice of Exclusive
Control is an officer, representative or agent of Creditor authorized to act on
the behalf of Creditor and to make the representations and agreements contained
in this Notice of Exclusive Control.

CREDITOR:
                                        ----------------------------------------

                                        By
                                           -------------------------------------
                                        Title:

ACKNOWLEDGED BY:
(for facsimile only)                    By: SVB SECURITIES
                                            ------------------------------------
                                        Name:
                                        Title:
                                        Date:
                                        Time:

SVBS Form Dated October 22, 2002

                                       10

<PAGE>

                                 SVB Securities

                      Securities Account Control Agreement

Customer: ARBINET-THEXCHANGE, INC.

Creditor: SILICON VALLEY BANK

Date:     February 3, 2003

This Securities Account Control Agreement entered into as of the above date
(this "Agreement") is among SVB Securities, ("SVBS"), Banc of America Broker
Dealer Services, a division of Banc of America Securities LLC ("BA-BDS" or
"Clearing Broker"), the Customer identified above ("Customer"), and the Creditor
identified above ("Creditor").

                                    Recitals

          A. Customer has established a securities account or securities
accounts ("Account") with and/or through SVBS and BA-BDS pursuant to a SVB
Securities Client Agreement ("Client Agreement"). The account number and title
for the Account (or Accounts) are identified in Exhibit A to this Agreement.
SVBS acts as the introducing broker. BA-BDS acts as the clearing broker. Both
SVBS and Clearing Broker are securities intermediaries pursuant to Article 8 of
the California Uniform Commercial Code ("CUCC"). Customer maintains in the
Account securities, financial assets and other investment property as defined
under Article 8 and 9 of the CUCC (collectively, the "Securities").

          B. Pursuant to a security agreement or similar agreement identified in
Exhibit A hereto (the "Security Agreement"), Customer has granted to Creditor a
security interest in certain personal property of Customer, including without
limitation (i) the Account; (ii) the Securities, (iii) all dividends and
distributions, whether payable in cash, securities, or other property, in
respect of the Securities, (iv) all of Customer's rights in respect of the
Securities and Account, and (iv) all products, proceeds and revenues of and from
any of the foregoing personal property in sections (i) through (iv)
(collectively, the "Collateral").

          C. SVBS, Clearing Broker, Customer and Creditor are entering into this
Agreement in order to perfect Creditor's security interest in the Collateral and
the Account by means of control pursuant to Article 8 of the CUCC.

                                    Agreement

          The parties hereto hereby agree as follows:

          1. Defined Terms. All terms used in this Agreement which are defined
in the CUCC but are not otherwise defined herein shall have the meanings
assigned to such terms in the CUCC, as in effect as of the date of this
Agreement. While in the Account, all property credited to the Securities will be
treated as financial assets under Article 8 of the CUCC. By this Agreement,
Customer grants to Creditor "control" over the Securities within the meaning of
Section 8106 of the

SVBS Form Dated October 22, 2002

                                        1

<PAGE>

CUCC.

          2. The Securities. SVBS and Clearing Broker represent to Creditor
that, on behalf of Customer, Customer maintains the Securities in the Account.

          3. Acknowledgement of Security Interest. SVBS and Clearing Broker
hereby acknowledge the security interest granted in the Collateral to Creditor
by Customer. Creditor hereby acknowledges the security interest granted in the
Collateral to SVBS and Clearing Broker by Customer pursuant to the Client
Agreement.

          4. Other Control Agreements. SVBS represents and warrants that, other
than any account control agreement listed in Exhibit A hereto, SVBS has executed
no other account control agreement with any other party and SVBS is not
presently obligated to accept any entitlement order from any person other than
the Customer with respect to the Collateral. Clearing Broker represents and
warrants that, other than any account control agreement listed in Exhibit A
hereto, Clearing Broker has executed no other account control agreement with any
other party and Clearing Broker is not presently obligated to accept any
entitlement order from any person other than the Customer with respect to the
Collateral.

          5. Future Control Agreements. Customer covenants and agrees that it
will not enter an account control agreement with any other party without
Creditor's prior written consent. SVBS agrees that it will not enter into a
control agreement with any other party with respect to the Account without
Creditor's prior written consent. Clearing Broker agrees that it will not enter
into a control agreement with any other party with respect to the Account
without Creditor's prior written consent.

          6. Limitation on SVBS' and Clearing Broker's Rights in the Collateral.
SVBS and Clearing Broker will not attempt to assert control and does not claim
and will not accept any security or other interest in any part of the
Collateral, and SVBS and Clearing Broker will not exercise, enforce or attempt
to enforce on their own behalves any right of setoff against the Collateral, or
otherwise charge or deduct from the Collateral on SVBS' or Clearing Broker's
behalves any amount whatsoever, other than for: security interests, liens,
encumbrances, claims or rights of setoff for the payment of any amounts owed by
Customer to SVBS and/or Clearing Broker arising in connection with SVBS' and
Clearing Broker's customary fees and commissions pursuant to their agreement
with Customer or for the payment for financial assets and securities purchased
for the Account (the "Account Claims"). Customer and Creditor hereby acknowledge
that any security interests, liens, encumbrances, claims or rights of setoff for
the payment of any amounts owed by Customer to SVBS and Clearing Broker arising
in connection with the Account Claims shall at all times be prior to the rights
of Creditor in the Collateral and Securities whether or not Creditor sends to
SVBS a Notice of Exclusive Control described below.

          7. Agreement for Control.

          (a) SVBS and Clearing Broker will comply with all entitlement orders
(including requests to withdraw Collateral from the Account) originated by
Customer with respect to the Collateral, or any portion of the Collateral,
without further consent by Creditor until such time as SVBS receives from
Creditor (in accordance with Section 17 below) a written notice to SVBS that
Creditor is thereby exercising exclusive control over the Account (a "Notice of
Exclusive Control."). The Notice of Exclusive Control must be in the form set
forth in Exhibit B hereto. SVBS or Clearing Broker have no obligation whatsoever
to confirm that Creditor is entitled to send a Notice of Exclusive Control in
connection with the Account or that the Creditor's representative who signs any
Notice of Exclusive Control is authorized to do so. SVBS and Clearing Broker
(upon

SVBS Form Dated October 22, 2002

                                        2

<PAGE>

instruction from SVBS) will, upon SVBS' receipt of such Notice of Exclusive
Control, proceed in accordance with the remainder of this Section 7 even if
Creditor's instructions are contrary to any instructions or demands that
Customer may give to SVBS or Clearing Broker. After SVBS receives a Notice of
Exclusive Control and has reasonable opportunity to comply with it, but no later
than two (2) Business Days ("Business Days" means days which SVBS is open to the
public for business and are measured in 24 hour increments) after receipt of the
Notice of Exclusive Control (in accordance with Section 17 below), SVBS and
Customer agree that SVBS and Clearing Broker will: (i) cease complying with
entitlement orders or other directions concerning the Account and Collateral
that are originated by Customer or its representatives until such time as SVBS
receives a written notice from Creditor rescinding the Notice of Exclusive
Control; and (ii) comply with the entitlement orders and instructions provided
to SVBS by Creditor without investigating: the reason for any action taken by
Creditor; the amount of any obligations of Customer to Creditor; the validity of
any of Creditor's agreement with Customer; or the existence of any defaults
under such agreements.

          (b) Notwithstanding the foregoing, Creditor agrees that upon receipt
of Creditor's Notice of Exclusive Control, SVBS and Clearing Broker may take all
steps necessary to satisfy or settle any Account Claims, may respond as required
pursuant to the terms of any other account control agreement with respect to
which SVBS believes it previously received a Notice of Exclusive Control or
similar notice, and may respond as required by law to any court or government
order, writ or other legal process received by SVBS or Cleaning Broker. Creditor
also agrees that, before SVBS' receipt of Creditor's Notice of Exclusive
Control, SVBS and Clearing Broker may be required to and may respond to (i)
Notices of Exclusive Control or similar notices sent to SVBS by other parties
and (ii) a writ or other similar legal process served on SVBS or Clearing Broker
in connection with the Account and Collateral. SVBS and Clearing Broker agree to
use good faith efforts to promptly notify Creditor if any other party delivers
to SVBS a notice of exclusive control or any party other than Creditor or SVBS
asserts a claim against the Collateral by means of a writ or other similar legal
process, but failure to provide such notice does not constitute a breach of this
Agreement. Customer expressly agrees that SVBS, Clearing Broker and Creditor may
act in accordance with the terms of this Section 7.

          8. Customer Waiver and Authorization. Customer hereby waives any
rights that Customer may have under the Client Agreement to the extent such
rights are inconsistent with the provisions of this Agreement, and hereby
authorizes SVBS and Clearing Broker to comply with all instructions and
entitlement orders delivered by Creditor to SVBS in accordance with the terms of
this Agreement.

          9. Amendments to and Termination of Client Agreement. SVBS, Clearing
Broker and Customer shall not amend, supplement or otherwise modify the Client
Agreement insofar as it pertains to the Collateral without prior written notice
to Creditor. Customer may not terminate the Client Agreement insofar as it
pertains to the Collateral without consent of Creditor. SVBS and Clearing Broker
agree to use good faith efforts to notify Creditor if SVBS or Clearing Broker
terminate the Client Agreement, but SVBS or Clearing Broker's failure to notify
Creditor shall not be a breach of this Agreement.

          10. Termination of this Agreement. Creditor may terminate this
Agreement by giving SVBS and Customer written notice of termination; provided
that, by giving such notice, Creditor acknowledges that it will thereby be
confirming that, as of the termination date, it will no longer

SVBS Form Dated October 22, 2002

                                        3

<PAGE>

have a perfected security interest in the Account and Securities in the
Collateral which is perfected by control via this Agreement, although Creditor
may continue to have a perfected security interest in the Account by other
means. SVBS and Clearing Broker may terminate this Agreement by giving Creditor
and Customer 30 days prior written notice of termination (unless a shorter
notice period is mandated by applicable law). Customer may only terminate this
Agreement with the written consent of Creditor; provided that, by giving such
notice with Creditor's written consent, both Customer and Creditor acknowledge
that they will thereby be confirming that, as of the termination date, Creditor
will no longer have a perfected security interest in the Collateral which is
perfected by control pursuant to this Agreement, although Creditor may continue
to have a perfected security interest in the Collateral by other means.

          11. Delivery of Account Statements. SVBS and Clearing Broker are
hereby authorized by Customer and agree to send to Creditor at its address for
notices set forth below Creditor's signature block at the end of this Agreement,
concurrently with the sending thereof to Customer, duplicate copies of any all
monthly statements or reports issued or sent to Customer with respect to the
Collateral and the Account. Until this Agreement is terminated, Customer
authorizes SVBS to disclose to Creditor at Creditor's request any information
concerning Customer's Account and the Securities in the Account, including but
not limited to the identity of any other party with which Customer and SVBS and
Clearing Broker have executed account control agreements or similar agreements.

          12. Responsibility of SVBS Clearing Broker and Creditor. This
Agreement does not create any obligation or duty on the part of SVBS, Clearing
Broker or Creditor other than those expressly set forth herein.

          13. No Waiver. Any forbearance or failure or delay by SVBS, Clearing
Broker or Creditor in exercising any right hereunder shall not be deemed a
waiver thereof and any single or partial exercise of any right shall not
preclude their further exercise thereof.

          14. Amendments. This Agreement and all exhibits attached hereto may be
amended only in writing signed by all parties hereto.

          15. Governing Law. Notwithstanding the terms of any other agreement,
the parties hereto agree that this Agreement shall be governed under and in
accordance with the laws of the State of California. All parties hereto each
submit to the exclusive jurisdiction of the State and Federal courts in Santa
Clara County, California.

          16. Integration Provision. This Agreement constitutes the entire
agreement among SVBS, Clearing Broker, Customer and Creditor with respect to
Creditor's control over the Collateral and Securities and matters specifically
set forth herein, and all prior communications, whether verbal or written,
between any of the parties hereto with respect to the subject matter hereof
shall be of no effect or evidentiary value.

          17. Notices.

          (a) Any notice, other that a Notice of Exclusive Control, or other
communication provided for or allowed hereunder shall be in writing and shall be
considered to have been validly given (a) when actually received by the
recipient at the address or fascimile number, if delivered

SVBS Form Dated October 22, 2002

                                        4

<PAGE>

personally (whether by messenger, air courier service or otherwise) or sent by
facsimile to the address or facsimile number identified below the signature of
the applicable party's signature below and addressed to the addressee identified
below the signature of the applicable party's signature below; or (b) 72 hours
after being deposited in the United States mail, registered or certified,
postage prepaid, return receipt requested, if sent to the address and addressee
as set forth below the signature of the applicable party hereto. The addresses
to which notices or other communications are to be given may be changed from
time to time by notice served as provided herein.

          (b) A Notice of Exclusive Control shall be in writing, must be in the
form set forth in Exhibit B hereto, must be delivered to the address listed
below SVBS' signature block at the end of This Agreement, must be delivered to
SVBS via hand delivery, messenger, overnight deliver or facsimile and shall be
considered to have been validly given when actually received, except that a
facsimile will be considered to have been validly given only when acknowledged
in writing by SVBS (SVBS agrees that it will use its good faith effort to
promptly acknowledge receipt of such facsimile). Creditor acknowledges that SVBS
may not be able to respond to a Notice of Exclusive Control pursuant to section
7 above, and Creditor agrees that SVBS will not be held liable for any failure
to respond to a Notice of Exclusive Control, if the Creditor does not deliver
the Notice of Exclusive Control as set forth in this Section 17 or to the
address listed below SVBS' signature block at the end of this Agreement.

          18. Indemnification and Hold Harmless of SVBS and Clearing Broker by
Customer. Customer hereby agrees to indemnify and hold harmless SVBS and
Clearing Broker, and their respective affiliates and their respective directors,
officers, agents and employees (each, an "Indemnified Person") against any and
all claims, causes of action, liabilities, lawsuits, demands and damages (each,
a "Claim") asserted by Creditor or any other party, including without
limitation, any and all court costs and reasonable attorney's fees, in any way
related to or arising out of or in connection with this Agreement or any action
taken or not taken pursuant hereto, including any claims arising as a result of
SVBS' and Clearing Broker's adherence (or alleged failure of adherence) to the
foregoing instructions including, without limitation, Claims that allegedly
result from SVBS' and/or Clearing Broker's ceasing, based on this Agreement, to
permit withdrawals of or from the Collateral or resulting from SVBS' and/or
Clearing Broker's paying over or delivering all or any part of the Collateral
pursuant to the directions of Creditor; provided that no Indemnified Person
shall be entitled to be indemnified to the extent that such Claims arise from
the Indemnified Person's own gross negligence or willful misconduct. Customer
agrees that SVBS and/or Clearing Broker shall not be liable for delays or errors
occurring by reason of circumstances beyond the control of SVBS or Clearing
Broker, including, without limitation, acts of civil, military, or banking
authorities, national emergencies, market disorder, labor difficulties, fire,
flood or other catastrophes, acts of God, terrorism, insurrection, war, riots,
failure of transportation or equipment, or failure of vendors, communication or
power supply. Clearing Broker shall have no responsibility or liability under
this Agreement to Customer for any acts or omissions by SVBS, its officers,
employees or agents; and SVBS shall have no responsibility or liability under
this Agreement to Customer for any acts or omissions by Clearing Broker, its
officers, employees or agents.

          19. Indemnification and Hold Harmless of SVBS and Clearing Broker by
Creditors. Creditor hereby agrees to indemnify Indemnified Persons against any
and all Claims asserted by Customer or any other party (including, without
limitation, any and all court costs and

SVBS Form Dated October 22, 2002

                                        5

<PAGE>

reasonable attorneys' fees) arising directly out of SVBS' and/or Clearing
Broker's adherence or failure of adherence to Creditor's instructions in its
Notice of Exclusive Control, including, without limitation, any Claim that
arises directly out of SVBS' and/or Clearing Broker's ceasing, based on this
Agreement, to permit withdrawals of or from the Collateral or resulting from
SVBS' and/or Clearing Broker's paying over or delivering all or any part of the
Collateral pursuant to Creditor's instructions in its Notice of Exclusive
Control; provided, that no Indemnified Person shall be entitled to be
indemnified (a) to the extent that such Claim results from an Indemnified
Person's gross negligence or willful misconduct; or (b) for any special,
indirect, consequential or punitive damages asserted by Customer if the waiver
in Section 21 of this Agreement is enforceable. Creditor agrees that it will not
hold Indemnified Persons liable for any Claim arising out of or relating to any
Indemnified Person's performance or failure of performance under this Agreement
other than those Claims that result directly from the acts or omissions of the
Indemnified Person which are deemed gross negligence or willful misconduct by a
civil court or other similar judicial body. Clearing Broker shall have no
responsibility or liability under this Agreement to Creditor for any acts or
omissions by SVBS, its officers, employees or agents; and SVBS shall have no
responsibility or liability under this Agreement to Creditor for any acts or
omissions by Clearing Broker, its officers, employees or agents.

          20. Jury Trial Waiver. CUSTOMER, CREDITOR, SVBS AND CLEARING BROKER
EACH WAIVE THEIR RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION ARISING
OUT OF OR BASED UPON THIS AGREEMENT, OR ANY CONTEMPLATED TRANSACTION, INCLUDING
CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER CLAIMS. THIS WAIVER IS A MATERIAL
INDUCEMENT FOR ALL PARTIES TO ENTER INTO THIS AGREEMENT. EACH PARTY HAS REVIEWED
THIS WAIVER WITH ITS COUNSEL.

          21. Waiver. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS
AGREEMENT OR ANYWHERE ELSE, CUSTOMER WAIVES AND AGREES THAT IT SHALL NOT SEEK
FROM SVBS, CLEARING BROKER OR CREDITOR UNDER ANY THEORY OF LIABILITY (INCLUDING
WITHOUT LIMITATION ANY THEORY IN TORTS), ANY SPECIAL, INDIRECT, CONSEQUENTIAL OR
PUNITIVE DAMAGES.

          22. Unpaid Account Claims. Before Creditor exercises exclusive control
over the Account, SVBS and/or Clearing Broker may, in the ordinary course of
business, debit from the Account any unpaid Account Claims. After Creditor
exercises exclusive control over the Account, if (a) funds are not available in
the Account to pay SVBS and/or Clearing Broker for any Account Claims, and (b)
Customer fails to pay such Account Claims with fifteen (15) Business days of
SVBS' and/or Clearing Broker's written demand therefore, Creditor will pay to
SVBS and/or Clearing Broker, within ten (10) Business days of a written demand
by SVBS and/or Clearing Broker, any amounts owed for an Account Claim and that
is not paid in full by Customer up to the amount of the proceeds received by
Creditor from the Account.

          23. Attorneys' Fees Costs and Expenses. In any action or proceeding
between Customer and SVBS, between Customer and Clearing Broker, between
Creditor and SVBS, or between Creditor and Clearing Broker, arising out of this
Agreement, the prevailing party will be entitled to recover its reasonable
attorney's fees and other costs and expenses incurred, in addition to any other
relief to which it may be entitled, whether or not a lawsuit is filed.

SVBS Form Dated October 22, 2002

                                        6

<PAGE>

          24. No Conflict. To the extent that the terms or conditions of this
Agreement are inconsistent with the Client Agreement or any other document,
instrument or agreement between SVBS, Clearing Broker and Customer, the terms
and conditions of this Agreement shall prevail.

          25. Successors. The terms of this Agreement shall be binding upon, and
shall inure to the benefit of, the parties hereto and to each party's respective
successors or heirs and personal representatives. The parties may assign this
Agreement and any rights under the Agreement only if that party's successor or
assign assume all obligations under this Agreement.

          26. Counterparts. This Agreement may be executed in any number of
counterparts and by different parties on separate counterparts, each of which,
when executed and delivered, are an original, and all taken together, are one
Agreement.

          27. Survival. Sections 15 and 18 through 25 shall survive the
termination of this Agreement.

          [The rest of this page intentionally left blank.]

SVBS Form Dated October 22, 2002

                                        7

<PAGE>

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be executed by their duly authorized representatives as of the date first above
written.

CUSTOMER:                               ARBINET-THEXCHANGE, INC.

                                        By  /s/ Peter P. Sach
                                           -------------------------------------
                                        Name: PETER P. SACH
                                        Title: CAO & TREASURER

                                        Address for Notices:
                                        75 BROAD ST.
                                        20TH FLOOR
                                        NEW YORK, NY 10004
                                        Telephone: (917) 320-2054
                                        Facsimile: (917) 320-1895

CREDITOR:                               SILICON VALLEY BANK

                                        By  /s/ David Reich
                                           -------------------------------------
                                        Name: David Reich
                                        Title: SVP

                                        Address for Notices:
                                        One Newton Executive Park, Suite 200
                                        2221 Washington Street
                                        Newton, MA 02462
                                        Telephone:
                                        Facsimile:

SVBS:                                   SVB SECURITIES

                                        By
                                           -------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title: Operations Manager

                                        Address of Notices:
                                        SVB Securities
                                        3003 Tasman Drive
                                        Mail Sort HG250
                                        Santa Clara, CA 95054
                                        Attn: Operations Manager
                                        Telephone: 408-654-7256
                                        Facsimile: 408-496-2407

CLEARING BROKER:                        BANC OF AMERICA SECURITIES LLC

                                        By
                                           -------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

SVBS Form Dated October 22, 2002

                                       -8-

<PAGE>

                                 SVB Securities
                      Securities account Control agreement
                                   Exhibits A

1.   Account Title and Number:

     Account Title: Arbinet-Thexchange, Inc.

     Account Number 88602820

2.   "Security Agreement" (This section to be completed by Creditor): Accounts
     Receivable Financing agreement dated February 3, 2003 Between Creditor and
     Customer.

3.   Accountant Control Agreements Previously Executed by SVB Securities and
     Clearing Broker with other Parties Asserting an Interest in the Account
     (This Section to be Completed by SVBC):

     Securities Account Control Agreement dated February 3, 2003 Between ORIX
     Merchant Banking LLC, SVBS Customer and Clearing Broker.

SVBS Form Dated October 22, 2002

                                        9

<PAGE>

                                 SVB Securities
                      Securities Account Control Agreement
                                    Exhibit B
                           Notice of Exclusive Control

To:   SVB Securities ("SVBS")

From: ("Creditor") SILICON VALLEY BANK

Re:   ("Customer") ARBINET-THEXCHANGE, INC.

Date:
      -----------------------------

Pursuant to the Securities Account Control Agreement dated
                                                           -----------------
("Agreement") entered among SVBS, Clearing Broker (as defined in the Agreement)
Customer and Creditor, Creditor hereby notifies SVBS of Creditor's exercise of
Creditor's rights under the Agreement and directs SVBS to cease complying with
trading instructions or any entitlement orders originated by Customer or its
agents.

Creditor understands and agrees that SVBS and Clearing Broker shall have no duty
or obligation whatsoever of any kind or character to determine the validity of
Creditor's exercise of its rights under the Agreement or the certification
above, to determine if SVBS and/or Clearing Broker is/are obligated to take
further instructions from Customer, or to determine whether Creditor has a right
to all part of the Collateral. Creditor hereby agrees to indemnify and hold
harmless SVBS and Clearing Broker, their respective affiliates, and their
respective directors, officers, employees and agents pursuant to the terms of
Section 19 of the Agreement.

Creditor agrees that upon receipt of Creditor's Notice of Exclusive Control,
SVBS and Clearing Broker may exercise their rights and remedies as permitted
under the Agreement.

Creditor hereby certifies that the person executing this Notice of Exclusive
Control is an officer, representative or agent of Creditor authorized to act on
the behalf of Creditor and to make the representations and agreements contained
in this Notice of Exclusive Control.

CREDITOR:
                                        ----------------------------------------

                                        By
                                           -------------------------------------
                                        Title:

ACKNOWLEDGED BY:                                     SVB SECURITIES
(for facsimile only)

                                        By:
                                            ------------------------------------
                                        Name:
                                        Title:
                                        Date:
                                        Time:

SVBS Form Dated October 22, 2002

                                       10

<PAGE>

Account Numbers: 3300388415

                               Silicon Valley Bank

                        DEPOSIT ACCOUNT CONTROL AGREEMENT

Customer: ARBINET-THEXCHANGE, INC.

Creditor: ORIX MERCHANT BANKING LLC

Date: February 3, 2003

          This Deposit Account Control Agreement ("Agreement") is entered into
as of the above date between Silicon Valley Bank ("Bank"), Creditor identified
above ("Creditor"), and Customer identified above ("Customer").

All parties agree as follows:

1. Deposit Account. Bank maintains one or more demand, time, savings, passbook,
certificates of deposit or other similar accounts that are identified above in
which Customer has an interest. The referenced account(s) is (are) subject to
the Bank's Deposit Agreement Disclosure Statement, unless specifically altered
by this Agreement. The parties acknowledge that the Deposit Account constitutes
a "Deposit Account" within the meaning of Section 9102 of the Uniform Commercial
Code of the State of California ("UCC") and Bank is a "Bank within the meaning
of Section 9102 of the UCC. The provisions of this Agreement constitute
"Control" over the Deposit Account within the meaning of Section 9104 of the
UCC.

2. Security Interests. Pursuant to a security agreement or similar agreement
identified in Exhibit A hereto ("Security Agreement"), Customer has granted to
Creditor a security interest in the above account(s) and in all funds now or
later deposited into or held therein (collectively, the "Deposit Account"). Bank
acknowledges the security interest in the Deposit Account granted by Customer to
Creditor. With respect to Bank's rights pursuant to Section 6 of this Agreement,
Customer has granted to Bank a security interest in the Deposit Account, or Bank
has a lien or right of setoff under the UCC or other laws applicable to the
Deposit Account. Creditor acknowledges the Bank's lien or right of setoff on the
Deposit Account under the UCC or other laws applicable to the Deposit Account
and/or the security interest in the Deposit Account granted by Customer to Bank.
Customer hereby ratifies and confirms the security interests and/or liens and/or
rights of setoff it has granted in the Deposit Account to Bank and Creditor.

3. Other Deposit Control Agreements. Bank has entered into Deposit Account
Control Agreements with the parties listed on Exhibit A attached hereto.
Customer covenants and agrees that it will not enter into a deposit control
agreement with any other party without Creditor's prior written consent. Bank
agrees that it will not enter into a deposit control agreement with any other
party with respect to the Deposit Account without Creditor's prior written
consent.

4. Customer's Rights in Deposit Account. Until Bank receives a Notice of
Exclusive Control (as described and set forth below), Customer will be entitled
to draw items on and otherwise to withdraw or direct the disposition of funds
from the Deposit Account. So long as this Agreement is in effect, Customer may
not close the Deposit Account without

SVB Form date April 15, 2002

                                        1

<PAGE>

Creditor's prior written consent. Bank may close Customer's Deposit Account in
accordance with Bank's business practices and as required by applicable law.
Customer will notify Creditor if Bank closes Customer's Deposit Account.

5. Creditor's Control of Deposit Account. Except as permitted in section 6 of
this Agreement, and except as required pursuant to the terms of any other
deposit account control agreement executed by Customer and/or referenced in
Section 3 and Exhibit A to this Agreement, after Bank receives a Notice of
Exclusive Control from Creditor and has had reasonable opportunity to comply
with it, but no later than two Business Days ("Business Days" means days which
Bank is open to the public for business and are measured in 24 hour increments)
after the Notice of Exclusive Control has been validly given (in accordance with
Section 13 (B) below), Bank and Customer agree that Bank will comply with
Creditor's instructions as to the withdrawal or disposition of any funds
credited to the deposit Account, and to any other matters relating to the
Deposit Account, without Customer's further consent. Creditor agrees that it
will not send a Notice of Exclusive Control unless it believes that it is
entitled to exercise its rights as to the Deposit Account under the Security
Agreement or any of the other documents executed in connection with the Security
Agreement. The Notice of Exclusive Control must be in the form set forth in
Exhibit B hereto and must be signed by an authorized representative of Creditor.
Creditor's instructions may include the giving of stop payment orders for any
items being presented to the Deposit Account for payment. Bank will be fully
entitled to rely upon such instructions from Creditor even if such instructions
are contrary to any instructions or demands given by Customer. Customer confirms
that Bank should follow instructions from Creditor even if the result of
following such instructions is that Bank dishonors items presented for payment
from the Deposit Account. Customer further confirms that Bank will have no
liability to Customer for wrongful dishonor of such items in following such
instructions from Creditor. Bank shall have no duty to inquire or determine
whether Customer's obligations to Creditor are in default or whether the
Creditor is entitled to send a Notice of Exclusive Control.

6. Priorities of Security Interests; Rights Reserved by Bank. Creditor agrees
that nothing herein subordinates or waives, and that Bank expressly reserves,
any and/or all of Bank's present and future rights (whether described as right
of setoff, banker's liens, chargeback or otherwise, and whether available to
Bank under the law or under any other agreement between Bank and Customer
concerning the Deposit Account) with respect to (a) items deposited to the
Deposit Account and returned unpaid, whether for insufficient funds or for any
other reason; (b) overdrafts on the Deposit Account; (c) automated clearing
house entries; (d) any provisional credits granted by Bank to the Deposit
Account; (e) claims of breach of the Uniform Commercial Code's transfer or
presentment warranties made against Bank in connection with items deposited to
the Deposit Account; (f) Bank's usual and customary charges for services
rendered in connection with the Deposit Account; or (g) any lien arising in
connection with any loan or other credit relationship between Customer and Bank
which lien shall be subject to the provision of the Subordination/ Intercreditor
Agreement identified in Exhibit A hereto. Creditor agrees that notwithstanding
receipt of Creditor's Notice of Exclusive Control, subject to the terms and
obligations in the Subordination/ Intercreditor Agreement listed in Exhibit A,
Bank may exercise Bank's rights and remedies in connection with any liens,
security interests or claims it may have in or on the Deposit Account as
described in this Section 6.

7. Statements. At customer's expense, Bank will send copies of all statements
for the Deposit Account to Creditor at Creditor's address set forth below
Creditor's signature block at the end of this Agreement. Until this Agreement is
terminated, Customer authorizes Bank to disclose to Creditor at Creditor's
request any information concerning Customer's Deposit Account, including but not
limited to the identity

SVB Form date April 15, 2002

                                        2

<PAGE>

of any other party with which Customer and Bank have executed deposit control
agreements or similar agreements.

8. Returned Items. Bank will pay returned items by debiting the Deposit Account.
if at any time after Creditor exercises exclusive control over the Deposit
Account (a) funds are not available in the Deposit Account to cover the amount
of any returned item, and (b) Customer fails to pay such amount within 15
Business Days of Bank's written demand therefor, then Creditor agrees that it
will pay, within ten (10) Business Days of a written demand by Bank, any amounts
owed for a returned item that is not paid in fully by Customer up to the amount
of the proceeds received by Creditor form the corresponding returned item.

9. Indemnity and hold harmless of Bank by Customer. Customer hereby agrees to
indemnify and hold harmless Bank, its affiliates and their respective directors,
officers, agents and employees (each, an "Indemnified Person") against any and
all claims, causes of action, liabilities, lawsuits, demands and damages (each,
a "Claim") asserted by Creditor or any other party (other than Indemnified
Person), including without limitation, any and all court costs and reasonable
attorneys' fees, in any way related to or arising out of or in connection with
this Agreement or any action taken or not taken pursuant hereto, including any
Claims arising as a result of Bank's adherence. (or alleged failure of
adherence) to the foregoing instructions including, without limitation, Claims
that allegedly result from Bank's ceasing, based on this Agreement, to permit
withdrawals of or from the Deposit Account or the funds in the Deposit Account
or resulting from Bank's paying over or delivering all or any part of the
Deposit Account or the funds in the Deposit Account pursuant to the directions
of Creditor; provided that no Indemnified Person shall be entitled to be
indemnified to the extent that such Claims result from an Indemnified Person's
gross negligence or willfull misconduct. Customer will indemnify Creditor for
any indemnity obligations Creditor owes to Bank under this Agreement.

10. Indemnification and Hold Harmless of Bank by Creditor. Creditor hereby
agrees to indemnified Persons against any and all Claims asserted by Customer or
any other party (other than an Indemnified Person), including, without
limitation, any and all court costs and reasonable attorneys' fees, arising
directly out of Bank's adherence or failure of adherence to Creditors'
instructions in its Notice of Exclusive Control, including, without limitation,
any Claim that arises directly out of Bank's ceasing, based on this Agreement,
to permit withdrawals of or from the Deposit Account of the funds in the Deposit
Account or resulting from Bank's paying over or delivering all or any part of
the Deposit Account or the funds in the Deposit Account pursuant to Creditor's
instructions in its Notice of Exclusive Control; provided that no Indemnified
Person shall be entitled to be indemnified (a) to the extent that such Claim
results from an Indemnified Person's gross negligence or willful misconduct; (b)
for any special, indirect, consequential or punitive damages asserted by
Customer if the waiver in Section 11 of this Agreement is enforceable; or (c)
any Claim asserted against Bank for Bank's breach of the
Subordination/Intercreditor Agreement identified in Exhibit A. Creditor agrees
that it will not hold Indemnified Persons liable for any Claim arising out of or
relating to any Indemnified Person's performance or failure of performance under
this Agreement other than those Claims that result directly from the acts or
omissions of an Indemnified Person which constitute gross negligence or willful
misconduct.

11. Waiver. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS AGREEMENT
OR ANYWHERE ELSE, CUSTOMER WAIVES AND AGREES THAT IT SHALL NOT SEEK FROM BANK OR
CREDITOR UNDER ANY THEORY OF LIABILITY (INCLUDING WITHOUT LIMITATION ANY THEORY
IN TORT), ANY SPECIAL, INDIRECT, CONSEQUENTIAL OR PUNITIVE DAMAGES.

SVB Form date April 15, 2002

                                        3

<PAGE>

12. Amendments. This Agreement and all Exhibits attached hereto may be amended
only By a written agreement, signed by Bank, Creditor, and Customer

13. Notices.

(A) Any notice, other than a Notice of Exclusive Control, or other communication
provided for allowed hereunder shall be in writing and shall be considered to
have been validly given (a) when received if delivered personally (whether by
messenger, hand delivery or otherwise) or by overnight delivery or by facsimile
to the recipient to the address or facsimile number set forth below the
signature of the applicable party hereto, or (b) 72 hours after being deposited
in the United States mail, registered or certified, postage prepaid, return
receipt requested, if sent to the address and addressee as set forth below the
signature of the applicable party hereto. The addresses to which notices or
other communications are to be given (including a Notice of Exclusive Control
pursuant to subsection (B) below) may be changed from time to time by notice
served as provided herein.

(B) A Notice of Exclusive control shall be in writing, must be in the form set
forth in exhibit B hereto, must be delivered to the address listed below Bank's
signature block at the end of this Agreement, must be delivered to Bank via hand
delivery, messenger, overnight delivery or facsimile and shall be considered to
have been validly given when actually received except that a facsimile will be
considered to have been validly given only when acknowledge in writing by Bank
(Bank agrees that it will use its good faith effort to acknowledge receipts of
such facsimile. Creditor acknowledges that Bank may not be able to respond to a
Notice of Exclusive control pursuant to Section 5 above, and Creditor agrees
that Bank will not be held liable for any failure to respond to a Notice of
Exclusive Control, if the Creditor does not deliver the Notice of Exclusive
Control as set forth in this Section 13 or to the Address listed below Bank's
signature block at the end of this Agreement.

14. Integration Provision. Except for the Subordination/Intercreditor Agreement
identified in Exhibit A, this Agreement constitutes the entire agreement among
Bank, Customer and Creditor with respect to Creditor's control over the Deposit
Account and matters related thereto, and all prior communications, whether
verbal or written, between any of the parties hereto with respect to the subject
matter hereof shall be of no further effect or evidentiary value.

15. Counterparts. This Agreement may be signed in counterparts that, when signed
by all parties, shall constitute one agreement.

16. Relationship of the Parties. Nothing in this agreement shall create any
agency or fiduciary relationship between Customer, Creditor and Bank.

17. Governing Law and Jurisdiction. The parties hereto agree that this agreement
shall be governed exclusively under and in accordance with the laws of the State
of California. All parties hereto each submit to the Exclusive jurisdiction of
the State and Federal courts in Santa Clara County, California.

18. Jury Trial Waiver. CUSTOMER, CREDITOR, AND BANK EACH WAIVE THEIR RIGHT TO A
JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION ARISING OUT OF OR BASED UPON THIS
AGREEMENT, OR ANY CONTEMPLATED TRANSACTION, INCLUDING CONTRACT, TORT, BREACH OF
DUTY AND ALL OTHER CLAIMS. THIS WAIVER IS A MATERIAL INDUCEMENT FOR ALL PARTIES
TO ENTER INTO THIS AGREEMENT. EACH PARTY HAS REVIEWED THIS WAIVER WITH ITS
COUNSEL.

19. Successors. The terms of this Agreement shall be binding upon, and shall
inure to the benefit of, the parties hereto and their respective corporate
successors or heirs and personal representatives. However, Customer may not
assign this Agreement without the prior written consent of the Creditor and
Bank.

SVB Form date April 15, 2002

                                       -4-

<PAGE>

Creditor may not assign this Agreement without the prior written consent of
Bank. Bank may not assign this Agreement without 30 days prior written notice to
the other parties.

20. Attorneys' Fees, Costs and Expenses In any action or proceeding between Bank
and any other party to this agreement, the prevailing party will be entitled to
recover its reasonable attorneys' fees and other reasonable costs and expenses
incurred, in addition to any other relief to which it may be entitled.

21. Termination; Survival. Creditor may terminate this Agreement by giving Bank
and Customer written notice of termination; provided that, by giving such
notice, Creditor acknowledges that it will thereby be confirming that, as of the
termination date, it will no longer have a perfected security interest in the
Deposit Account via control pursuant to this Deposit Account Control Agreement,
although Creditor may continue to have a perfected security interest in the
Deposit Account by other means. Bank may terminate this Agreement by giving
Creditor and Customer 30 days' prior written notice of termination. Customer may
only terminate this Agreement with the written consent of Creditor; provided
that, by giving such notice with Creditor's written consent, both Customer and
Creditor acknowledge that they will thereby be confirming that, as of the
termination date, Creditor will no longer have a perfected security interest in
the Deposit Account via control pursuant to this Deposit Account Control
Agreement, although Creditor may continue to have a perfected security interest
in the Deposit Account by other means. Subject to the foregoing, this Agreement
Automatically terminates when the Deposit Account closes or when Creditor
notifies Bank that all obligations owed to Creditor have been paid in full and
Creditor has terminated its security interest in the Deposit Account. Sections
9, 10, 11, 17, 18 and 20 shall survive the termination of this Agreement

[The rest of this page intentionally left blank]

SVB Form date April 15, 2002

                                        5

<PAGE>

BANK:       SILICON VALLEY BANK                    2/3/03

            By  /s/ Authorized Representative
               ---------------------------------
            Title:
            Deposit Control Department
                                                   Bonnie Hamond
                                                   Operations Manager
            Address for Notices:                   Silicon Valley Bank
            Silicon Valley Bank                    3003 Tasman Dr.
            Deposit Control Department             Santa Clara. CA 95064
            3003 Tasman Drive                      (408) 654-5512
            Mail Sort AGERS 180
            Santa Clara, CA 95054
            Telephone: 408-654-55121403-164-3034
            /408-654-3009
            Facsimile: 408-634-6389

CUSTOMER:   ARBINET-THEXCHANGE, INC.
            & Delaware corporation

            By  /s/ Peter P. Sach
               ---------------------------------
            Name: Peter P. Sach
            Title: CAO & Treasurer

            Address for Notices:
            75 Broad Street, 10th Floor
            New York, New York
            Telephone:
            Facsimile: (917) 320-1895

CREDITOR:   ORIX MERCHANT BANKING LLC
            Delaware LLC corporation

            By  /s/ Kevin P. Sheehan
               ---------------------------------
            Name: Kevin P. Sheehan
            Title: Principal

            Address for Notices:
            1177 Avenue of the American
            New-York, New York
            Telephone: 212-739-1100
            Facsimile: 212-739-3701

SVB FORM date April 15, 2002

                                        6

<PAGE>

                               Silicon Valley Bank
                        Deposit Account Control Agreement
                                    Exhibit A

1.   "Security Agreement":

               Loan and Security Agreement dated January 31, 2002

2.   Deposit Account Control Agreements Previously Executed by Silicon Valley
     Bank with other Parties Asserting an Interest in the Deposit Account:

                                      None.

3.   Subordination/Intercreditor Agreement(s) executed by Silicon Valley Bank
     and Creditor:

               Intercreditor Agreement dated February 3, 2003

SVB Form date April 15, 2002

                                       -7-

<PAGE>

                               Silicon Valley Bank
                        Deposit Account Control Agreement
                                    Exhibit B
                           Notice of Exclusive Control

To:   Silicon Valley Bank ("Bank")
From: ("Creditor")   ORIX MERCHANT BANKING LLC
Re:   ("Customer")   ARBINET-THEXCHANGE, INC.
Date:
      ------------------

Pursuant to the Deposit Account Control Agreement dated
                                                        -----------------
("Agreement") entered among Bank, Customer and Creditor, Creditor hereby
notifies Bank of Creditor's exercise of Creditor's rights under the Agreement
and directs Bank to cease complying with instructions or any directions
originated by Customer or its agents. Creditor hereby certifies that it is
entitled to exercise its rights under the Agreement, that Creditor has a right
to all or part of the funds in the Deposit Account (as defined in the
Agreement), and agrees to specify the amount of the funds in the Deposit Account
so due Creditor.

Creditor understands and agrees that Bank shall have no duty or obligation
whatsoever of any kind or character to determine the validity of Creditor's
exercise of its rights under the Agreement or the certification above, to
determine if Bank is obligated to take further instructions from Customer, or to
determine whether Creditor has a right to all or part of the funds in the
Deposit Account. Creditor hereby agrees to indemnify and hold harmless Bank, its
affiliates, and their respective directors, officers, employees and agents
pursuant to the terms of Section 10 of the Agreement.

Creditor agrees that, upon receipt of Creditor's Notice of Exclusive Control,
Bank may exercise Bank's rights and remedies as permitted under Sections 5 and 6
of the Agreement and under any applicable laws, and may need to comply with
obligations pursuant to the deposit account control agreements set forth in
Exhibit A of the Agreement.

Creditor hereby certifies that the person executing this Notice of Exclusive
Control is an officer, representative or agent of Creditor authorized to act on
the behalf of Creditor and to make the representations and agreements contained
in this Notice of Exclusive Control.

CREDITOR:
                                        ----------------------------------------

                                        By
                                           -------------------------------------
                                        Title:

ACKNOWLEDGED BY:                        SILICON VALLEY BANK
(for facsimile only)

                                        By:
                                            ------------------------------------
                                        Name:
                                        Title:
                                        Date:
                                        Time:

SVD Form date April 15, 2002

                                        8

<PAGE>

           FIRST AMENDMENT TO ACCOUNTS RECEIVABLE FINANCING AGREEMENT

     This First Amendment to Accounts Receivable Financing Agreement (this
"First Amendment") is entered into as of October 27, 2003, by and between
SILICON VALLEY BANK, a California-chartered bank, with its principal place of
business at 3003 Tasman Drive, Santa Clara, California 95054 and with a loan
production office located at One Newton Executive Park, Suite 200, 2221
Washington Street, Newton, Massachusetts 02462, doing business under the name
"Silicon Valley East" ("Bank") and ARBINET-THEXCHANGE, INC., a Delaware
corporation with its principal place of business at 120 Albany Street, Tower II,
Suite 450, New Brunswick, New Jersey 08901 ("Borrower").

1. DESCRIPTION OF EXISTING INDEBTEDNESS AND OBLIGATIONS. Among other
indebtedness and obligations which may be owing by Borrower to Bank, Borrower is
indebted to Bank pursuant to a financing arrangement dated as of February 3,
2003, evidenced by, among other documents, a certain Accounts Receivable
Financing Agreement dated as of February 3, 2003, between Borrower and Bank (as
amended, the "AR Financing Agreement"). Capitalized terms used but not otherwise
defined herein shall have the same meaning as in the AR Financing Agreement.

2. DESCRIPTION OF COLLATERAL. Repayment of the Obligations is secured by the
Collateral as described in the AR Financing Agreement (together with any other
collateral security granted to Bank, the "Security Documents").

Hereinafter, the Security Documents, together with all other documents
evidencing or securing the Obligations shall be referred to as the "Existing
Loan Documents".

3. DESCRIPTION OF CHANGE IN TERMS.

     A    Modifications to AR Financing Agreement.

          1.   The AR Financing Agreement shall be amended by deleting the
               following definitions appearing in Section 1 thereof:

                    "Closing Date" is the date of this Agreement.

                    "Facility Amount" is Twelve Million Five Hundred Thousand
                    Dollars ($12,500,000.00), provided that the Facility Amount
                    shall be limited to Six Million Two Hundred Fifty Thousand
                    Dollars ($6,250,000.00) (the "Cap") until such time as the
                    Bank increases the Cap in the Bank's sole and absolute
                    discretion. Any increase in the availability above the Cap
                    described in the foregoing sentence shall be deemed received
                    to the extent that: (i) Bank provides written notice to
                    Borrower of such increase and only for the amount of such
                    increase, or (ii) the aggregate outstanding amount of
                    Financed Receivables at any one time exceeds the Cap, in
                    which case the Facility Amount shall be deemed to be such
                    increased amount.

                    "Maturity Date" shall be February 2, 2004.

                    "Minimum Finance Charge" is a minimum monthly Finance Charge
                    to be imposed beginning in the first full month of this
                    Agreement, payable in arrears, of Seven Thousand Five
                    Hundred Dollars ($7,500.00), which amount shall increase
                    with increases in the Cap as defined herein: (i) when the
                    Cap is at least Eight Million Seven Hundred Fifty Thousand
                    Dollars ($8,750,000.00) but less than Twelve Million Five
                    Hundred thousand Dollars ($12,500,000.00), a minimum monthly
                    Finance Charge of Ten Thousand Dollars ($10,000.00); and
                    (ii) when the Cap is Twelve Million Five Hundred Thousand
                    Dollars ($12,500,000.00), a minimum monthly Finance Charge
                    of Fourteen Thousand Dollars ($14,000.00)."

<PAGE>

               and inserting in lieu there of the following:

                    "Closing Date" is October 27, 2003.

                    "Facility Amount" is Eighteen Million Seven Hundred Fifty
                    Thousand Dollars ($18,750,000.00), provided that the
                    Facility Amount shall be limited to Twelve Million Five
                    Hundred Thousand Dollars ($12,500,000.00)(the "Cap") until
                    such time as the Bank increases the Cap in the Bank's sole
                    and absolute discretion. Any increase in the availability
                    above the Cap described in the foregoing sentence shall be
                    deemed received to the extent that: (i) Bank provides
                    written notice to Borrower of such increase and only for the
                    amount of such increase, or (ii) the aggregate outstanding
                    amount of Financed Receivables at any one time exceeds the
                    Cap, in which case the Facility Amount shall be deemed to be
                    such increased amount.

                    "Maturity Date" shall be October 26, 2005.

                    "Minimum Finance Charge" is a minimum monthly Finance Charge
                    to be imposed beginning in the first full month of this
                    Agreement, payable in arrears, of Fourteen Thousand Dollars
                    ($14,000.00)."

          2.   The AR Financing Agreement shall be amended by deleting the
               following text appearing in Section 3.3 thereof, entitled
               "Facility Fee":

                    "A fully earned, non-refundable facility fee of Seventy-Five
                    Thousand Dollars ($75,000.00) is due upon execution of this
                    Agreement."

              and inserting in lieu thereof the following:

                    "A fully earned, non-refundable facility fee of Seventy-Five
                    Thousand Dollars ($75,000.00) is due upon execution of this
                    Agreement, which has been paid in full. Thereafter, a fully
                    earned, non-refundable facility fee of Fifty Thousand
                    Dollars ($50,000.00) is due: (a) on the Closing Date, and
                    (b) on each anniversary of the Closing Date thereafter
                    during the Facility Period."

4. FEES. Notwithstanding Section 11 of the AR Financing Agreement, the Borrower
shall not be obligated to reimburse Bank for any legal fees and expenses
incurred in connection with this amendment to the Existing Loan Documents.

5. RATIFICATION OF PERFECTION CERTIFICATE. Borrower hereby ratifies, confirms
and reaffirms, all and singular, the terms and disclosures contained in a
certain Perfection Certificate dated as of February 3, 2003 between Borrower and
Bank, and acknowledges, confirms and agrees the disclosures and information
above Borrower provided to Bank in the Perfection Certificate has not changed,
as of the date hereof.

6. AUTHORIZATION TO FILE. Borrower hereby authorizes Bank to file financing
statements without notice to Borrower, with all appropriate jurisdictions, as
Bank deems appropriate, in order to further perfect or protect Bank's interest
in the Collateral, including a notice that any disposition of the Collateral, by
either the Borrower or any other Person, shall be deemed to violate the rights
of the Bank under the Code.

7. CONSISTENT CHANGES. The Existing Loan Documents are hereby amended wherever
necessary to reflect the changes described above.

8. RATIFICATION OF LOAN DOCUMENTS. Borrower hereby ratifies, confirms, and
reaffirms all terms and conditions of all security or other collateral granted
to the Bank, and confirms that the indebtedness secured thereby includes,
without limitation, the Obligations.

<PAGE>

9. NO DEFENSES OF BORROWER. Borrower hereby acknowledges and agrees that
Borrower has no offsets, defenses, claims, or counterclaims against Bank with
respect to the Obligations, or otherwise, and that if Borrower now has, or ever
did have, any offsets, defenses, claims, or counterclaims against Bank, whether
known or unknown, at law or in equity, all of them are hereby expressly WAIVED
and Borrower hereby RELEASES Bank from any liability thereunder.

10. CONTINUING VALIDITY. Borrower understands and agrees that in modifying the
existing Obligations, Bank is relying upon Borrower's representations,
warranties, and agreements, as set forth in the Existing Loan Documents. Except
as expressly modified pursuant to this First Amendment, the terms of the
Existing Loan Documents remain unchanged and in full force and effect. Bank's
agreement to modifications to the existing Obligations pursuant to this First
Amendment in no way shall obligate Bank to make any future modifications to the
Obligations. Nothing in this First Amendment shall constitute a satisfaction of
the Obligations. It is the intention of Bank and Borrower to retain as liable
parties all makers of Existing Loan Documents, unless the party is expressly
released by Bank in writing. No maker will be released by virtue of this First
Amendment.

11. COUNTER SIGNATURE. This First Amendment shall become effective only when it
shall have been executed by Borrower and Bank.

            [The remainder of this page is intentionally left blank]

<PAGE>

     This First Amendment is executed as a sealed instrument under the laws of
the Commonwealth of Massachusetts as of the date first written above.

BORROWER:                               BANK:

ARBINET-THEXCHANGE, INC.                SILICON VALLEY BANK

By:  /s/ Peter P. Sach                  By:  /s/ Dave Reich
    --------------------------------        ------------------------------------
Name: Peter P. Sach                     Name: Dave Reich
Title: CAO & Treasurer                  Title: SVP

<PAGE>

           SECOND AMENDMENT TO ACCOUNTS RECEIVABLE FINANCING AGREEMENT

     This Second Amendment to Accounts Receivable Financing Agreement (this
"Second Amendment") is entered into as of May 28, 2004, by and between SILICON
VALLEY BANK, a California-chartered bank, with its principal place of business
at 3003 Tasman Drive, Santa Clara, California 95054 and with a loan production
office located at One Newton Executive Park, Suite 200, 2221 Washington Street,
Newton, Massachusetts 02462, doing business under the name "Silicon Valley East"
("Bank") and ARBINET-THEXCHANGE, INC., a Delaware corporation with its principal
place of business at 120 Albany Street, Suite 450, New Brunswick, New Jersey
08901 ("Borrower").

1. DESCRIPTION OF EXISTING INDEBTEDNESS AND OBLIGATIONS. Among other
indebtedness and obligations which may be owing by Borrower to Bank, Borrower is
indebted to Bank pursuant to a financing arrangement dated as of February 3,
2003, evidenced by, among other documents, a certain Accounts Receivable
Financing Agreement dated as of February 3, 2003, between Borrower and Bank, as
amended by a certain First Amendment to Accounts Receivable Financing Agreement
dated as of October 27, 2003 (as amended, the "AR Financing Agreement").
Capitalized terms used but not otherwise defined herein shall have the same
meaning as in the AR Financing Agreement.

2. DESCRIPTION OF COLLATERAL. Repayment of the Obligations is secured by the
Collateral as Described in the AR Financing Agreement (together with any other
collateral security granted to Bank, the "Security Documents").

     Hereinafter, the Security Documents, together with all other documents
evidencing or securing the Obligations shall be referred to as the "Existing
Loan Documents".

3. DESCRIPTION OF CHANGE IN TERMS.

     Modifications to AR Financing Agreement.

     1.   The AR Financing Agreement shall be amended by deleting the following
          definitions appearing in Section 1 thereof:

               "Applicable Rate" is a per annum rate equal to the "Prime Rate"
               plus five and one-half percent (5.5%).

               "Facility Amount" is Eighteen Million Seven Hundred Fifty
               Thousand Dollars ($18,750,000.00), provided that the Facility
               Amount shall be limited to Twelve Million Five Hundred Thousand
               Dollars ($12,500,000.00)(the "Cap") until such time as the Bank
               increases the Cap in the Bank's sole and absolute discretion. Any
               increase in the availability above the Cap described in the
               foregoing sentence shall be deemed received to the extent that:
               (I) Bank provides written notice to Borrower of such increase and
               only for the amount of such increase, or (ii) the aggregate
               outstanding amount of Financed Receivables at any one time
               exceeds the Cap, in which case the Facility Amount shall be
               deemed to be such increased amount.

               "Financed Receivables" are all those accounts, receivables,
               chattel paper, instruments, contract rights, documents, general
               intangibles, letters or credit, drafts, bankers acceptances, and
               rights to payment, and all proceeds, including their proceeds
               (collectively "receivables"), which Bank finances and make an
               Advance. A Financed Receivables stops being a Financed
               Receivables (but remains Collateral) when the Advance made for
               the Financed Receivables has been finally paid.

<PAGE>

               "Maturity Date" shall be October 26, 2005.

               "Minimum Finance Charge" is a minimum monthly Finance Charge to
               be imposed beginning in the first full month of this Agreement,
               payable in arrears, of Fourteen Thousand Dollars ($14,000.00).

          and inserting in lieu thereof the following:

               "Applicable Rate" is a per annum rate equal to: (a) prior to the
               2004 Closing Date, the "Prime Rate" plus five and one-half of one
               percent (5.5%), (b) after the 2004 Closing Date and prior to the
               occurrence of an IPO, the "Prime Rate" plus two percent (2.0%),
               and (c) after the occurrence of an IPO, the "Prime Rate".

               "Facility Amount" is Twenty Five Million Dollars
               ($25,000,000.00), provided that the Facility Amount shall be
               limited to Eighteen Million Seven Hundred Fifty Thousand Dollars
               ($18,750,000.00) (the "Cap") until such time as the Bank
               increases the Cap in the Bank's sole and absolute discretion. Any
               increase in the availability above the Cap described in the
               foregoing sentence shall be deemed received to the extent that:
               (i) Bank provides written notice to Borrower of such increase and
               only for the amount of such increase, or (ii) the aggregate
               outstanding amount of Financed Receivables at any one time
               exceeds the Cap, in which case the Facility Amount shall be
               deemed to be such increased amount.

               "Financed Receivables" are all those accounts, receivables,
               chattel paper, instruments, contract rights, documents, general
               intangibles, letters of credit, drafts, bankers acceptances, and
               rights to payment (collectively "receivables"), and the
               Placeholder Invoice, and all proceeds, including their proceeds,
               which Bank finances and makes an Advance. A Financed Receivable
               stops being a Financed Receivable (but remains Collateral) when
               the Advance made for the Financed Receivable has been finally
               paid.

               "Maturity Date" shall be May   , 2006 [two years from closing].
                                            --

               "Minimum Finance Charge" is a minimum monthly Finance Charge to
               be imposed beginning in the first full month of this Agreement,
               payable in arrears, of Fourteen Thousand Dollars ($14,000.00),
               which amount shall increase to Twenty Two Thousand Five Hundred
               Dollars ($22,500.00) when the Cap is Twenty Five Million Dollars
               ($25,000,000.00) as of the 2004 Closing Date.

     2.   The AR Financing Agreement shall be amended by inserting the following
          definitions, in alphabetical order, in Section 1 thereof:

               "2004 Closing Date" is May   , 2004.
                                          --

               "IPO" is Borrower's initial underwritten public offering and sale
               of its securities pursuant to an effective registration statement
               under the Securities Act of 1933, as amended, pursuant to which
               Borrower receives net cash proceeds in an amount not less than
               $40,000,000.00.

               "Placeholder Advance" is defined in Section 2.2.

               "Placeholder Invoice" is a "placeholder invoice" maintained on
               the books of the Bank with a face amount equal to 125% of the
               principal amount (at any time) of the Placeholder Advance
               outstanding.

<PAGE>

               "Subordinated Debt" is debt incurred by Borrower subordinated to
               Borrower's debt to Bank (pursuant to a subordination agreement
               entered into between the Bank, the Borrower and the subordinated
               creditor), on terms acceptable to Bank.

               "Total Liabilities" is on any day, obligations that should, under
               GAAP, be classified as liabilities on Borrower's consolidated
               balance sheet, including all Indebtedness, and current portion of
               Subordinated Debt permitted by Bank to be paid by Borrower, but
               excluding all Subordinated Debt.

               "Tangible Net Worth" is, on any date, the consolidated total
               assets of Borrower and its Subsidiaries minus (i) any amounts
               attributable to (a) goodwill, (b) intangible items including
               unamortized debt discount and expense, patents, trade and service
               marks and names, copyrights and research and development expenses
               except prepaid expenses, and (c) reserves not already deducted
               from assets, minus (ii) Total Liabilities.

     3.   The AR Financing Agreement shall be amended by deleting Section 2.1
          thereof, entitled "Request for Advances", in its entirely, and
          inserting in lieu thereof the following:

               "2.1 Request for Advances. During the Facility Period, Borrower
               may offer either accounts receivable or the Placeholder Invoice
               to Bank and request that the Bank finance such accounts
               receivable or Placeholder Invoice, if there is not an Event of
               Default. Borrower will deliver an Invoice Transmittal for each
               accounts receivable or Placeholder Invoice it offers. Bank may
               rely on information on or with the Invoice Transmittal."

     4.   The AR Financing Agreement shall be amended deleting Section 2.2
          thereof, entitled "Acceptance of Accounts Receivable", in its
          entirely, and inserting in lieu thereof the following:

               "2.2 Acceptance of Accounts Receivable. Bank is not obligated to
               finance any accounts receivables or the Placeholder Invoice,
               except as provided herein. Bank agrees to finance account
               receivables from qualified credit Account Debtors as determined
               by Bank in its reasonable discretion unless, in Bank's reasonable
               assessment, the credit risk on those Account Debtors has changed,
               or there exists an Event of Default. Without limiting the Bank's
               discretion described in the foregoing sentence, the Bank may
               finance (i) certain billed receivables and (ii) certain unbilled
               receivables for communications services (including minutes and
               data) purchased in the current billing cycle but to be invoiced
               within fifteen (15) days. Bank may approve any Accounts Debtor's
               credit ("Eligible Account" or collectively, "Eligible Accounts")
               in writing before agreeing to finance any accounts receivable and
               will extend Advances against Eligible Accounts. Bank reserves the
               right, in its reasonable discretion, to remove any specific
               Account Debtor from the Eligible Accounts. When Bank agrees to
               finance a receivable or the Placeholder Invoice, it will extend
               credit to Borrower in an amount up to the result of the Advance
               Rate multiplied by the face amount of the receivable or the
               Placeholder Invoice (the "Advance"). Bank may, in its reasonable
               discretion, change the percentage of the Advance Rate with prior
               written notice to Borrower. When Bank makes an Advance, the
               receivable or the Placeholder Invoice becomes a "Financed
               receivables." All representations and warranties in Section 6
               must be true as of the date of the Invoice Transmittal and of the
               Advance and no Event of Default exists or would occur as a result
               of the Advance. The aggregate face amount of all Financed
               Receivables outstanding at any time may not exceed the Facility
               Amount, as affected by the Cap. In addition, the face amount of
               the Financed Receivable based on the Placeholder Invoice may not
               exceed $6,250,000. Accordingly, the

<PAGE>

               aggregate amount of all outstanding Advances made based on the
               Placeholder Invoice ("Placeholder Advances") may not exceed
               $5,000,000."

     5.   The AR Financing Agreement shall be amended by deleting the following
          text appearing in Section 3.3 thereof, entitled "Facility Fee":

          "Thereafter, a fully earned, non-refundable facility fee of Fifty
          Thousand Dollars ($50,000.00) is due: (a) on the Closing Date, and (b)
          on each anniversary of the Closing Date thereafter during the Facility
          Period."

          and inserting in lieu thereof the following:

          "A fully earned, non-refundable facility fee of Fifty Thousand Dollars
          ($50,000.00), which has been paid in full, is due on the Closing Date.
          A fully earned, non-refundable facility fee of Twenty Five Thousand
          Dollars ($25,000.00) is due on the 2004 Closing Date. Thereafter, a
          fully earned, non-refundable facility fee of Fifty Thousand Dollars
          ($50,000.00) is due on each anniversary of the 2004 Closing Date
          during the Facility Period."

     6.   The AR Financing Agreement shall be amended by deleting Section 4.3
          thereof, entitled "Early Termination of Agreement", in its entirety,
          and inserting in lieu thereof the following:

               "4.3 Early Termination of Agreement. This Agreement may be
               terminated prior to the last day of the Facility Period as
               follows: (i) by Borrower, effective three Business Days after
               written notice of termination is given to Bank; or (ii) by Bank
               at any time after the occurrence of an Event of Default, without
               notice, effective immediately. If this Agreement is terminated
               prior to the Maturity Date: (A) by Bank in accordance with clause
               (ii) in the foregoing sentence or (B) by Borrower for any reason,
               Borrower shall pay to Bank a termination fee in an amount equal
               to: (a) Seventy Five Thousand Dollars ($75,000.00), if such
               termination occurs on or before January 1, 2005, or (b) Fifty
               Thousand Dollars ($50,000.00), if such termination occurs after
               January 1, 2005 (the "Early Termination Fee"). The Early
               Termination Fee shall be due and payable on the effective date of
               such termination and thereafter shall bear interest at a rate
               equal to the highest rate applicable to any of the Obligations.
               Notwithstanding the foregoing, Bank agrees to waive the Early
               Termination Fee if Bank agrees to refinance and redocument this
               Agreement under another division of the Bank (in its sole and
               exclusive discretion) prior to the last day of the Facility
               Period."

     7.   The AR Financing Agreement shall be amended by deleting the following
          text appearing in subsection (D) of Section 6.3 thereof, entitled
          "Affirmative Covenants":

          "(ii) as soon as available, but no later than one hundred twenty (120)
          days after the end of Borrower's fiscal year, audited consolidated
          financial statements prepared under GAAP, consistently applied,
          together with an unqualified opinion on the financial statements from
          an independent certified public accounting firm acceptable to Bank
          (Ernst & Young is currently deemed acceptable);"

          and inserting in lieu thereof the following:

          "(ii) as soon as available, but no later than one hundred twenty (120)
          days after the end of Borrower's fiscal year, audited consolidated
          financial statements

<PAGE>

          prepared under GAAP, consistently applied, together with an
          unqualified opinion on the financial statements from an independent
          certified public accounting firm acceptable to Bank (Ernst & Young is
          currently deemed acceptable). Notwithstanding the foregoing, Borrower
          shall deliver such audited consolidated financial statements as soon
          as available but no later than one hundred eighty (180) days after the
          end of Borrower's fiscal year ended December 31, 2003;"

     8.   The AR Financing Agreement shall be amended by deleting subsection (L)
          of Section 6.3 thereof, entitled "Affirmative Covenants", in its
          entirety, and inserting in lieu thereof the following:

          "(E) Maintain at all times: (i) prior to the occurrence of an IPO, an
          EBITDA of not less than One Dollar ($1.00), to be tested on a monthly
          and quarterly basis, and (ii) after the occurrence of an IPO,
          cumulative EBITDA losses, beginning on the date of the completion of
          the IPO, of not more than 50% of the net proceeds received by Borrower
          pursuant to such IPO, to be tested quarterly."

     9.   The AR Financing Agreement shall be amended by deleting subsection (K)
          of Section 9 thereof, entitled "Events of Default", in its entirely,
          and inserting in lieu thereof the following:

          "(K) Any of the following occurs: (i) another entity obtains a first,
          perfected lien against the Collateral; or (ii) the Borrower has been
          subject to any event or circumstance having an adverse effect which
          results in Borrower's Tangible Net Worth falling below $4,000,000.00."

4. FEES. The Borrower shall be obligated to reimburse Bank for any reasonable
legal fees and expenses incurred in connection with this amendment to the
Existing Loan Documents.

5. RATIFICATION OF PERFECTION CERTIFICATE. Borrower hereby ratifies, confirms
and reaffirms, all and singular, the terms and disclosures contained in a
certain Perfection Certificate dated as of February 3, 2003 between Borrower and
Bank, and acknowledges, confirms and agrees the disclosures and information
above Borrower provided to Bank in the Perfection Certificate has not changed,
as of the date hereof, except as set forth on Schedule 5 attached hereto.

6. CONSISTENT CHANGES. The Existing Loan Documents are hereby amended wherever
necessary to reflect the changes described above.

7. RATIFICATION OF LOAN DOCUMENTS. Borrower hereby ratifies, confirms, and
reaffirms, all terms and conditions of all security or other collateral granted
to the Bank, and confirms that the indebtedness secured thereby includes,
without limitation, the Obligations.

8. NO DEFENSES OF BORROWER. Borrower hereby acknowledges and agrees that
Borrower has no offsets, defenses, claims, or counterclaims against Bank with
respect to the Obligations, or otherwise, and that if Borrower now has, or ever
did have, any offsets, defenses, claims, or counterclaims against Bank, whether
known or unknown, at law or in equity, all of them are hereby expressly WAIVED
and Borrower hereby RELEASES Bank from any liability thereunder.

9. CONTINUING VALIDITY. Borrower understands and agrees that in modifying the
existing Obligation, Bank is relying upon Borrower's representations,
warranties, and agreements, as set forth in the Existing Loan Documents. Except
as expressly modified pursuant to this Second Amendment, the terms of the
Existing Loan Documents remain unchanged and in full force and effect. Bank's
agreement to modifications to the existing Obligations pursuant to this Second
Amendment in no way shall obligate Bank to make any future modifications to the
Obligations. Nothing in this Second Amendment shall constitute a satisfaction of
the Obligations. It is the

<PAGE>

intention of Bank and Borrower to retain as liable parties all makers of
Existing Loan Documents, unless the party is expressly released by Bank in
writing. No maker will be released by virtue of this Second Amendment.

10. COUNTER SIGNATURE. This Second Amendment shall become effective only when it
shall have been executed by Borrower and Bank.

            [The remainder of this page is intentionally left blank]

<PAGE>

     This Second Amendment is executed as a sealed instrument under the laws of
the Commonwealth of Massachusetts as of the date first written above.

BORROWER:                                   BANK:
ARBINET-THEXCHANGE, INC.                    SILICON VALLEY BANK

By:  /s/ John J. Roberts                   By:  /s/ David Reich
    ------------------------------------       ---------------------------------

Name: John J. Roberts                      Name: David Reich
Title: Chief Financial officer             Title: SVP

826621.8

C/O & SVP Operation
Peter P. Sach

<PAGE>

                                   SCHEDULE 5
                        Changes to Perfection Certificate
                                       Of
                            Arbinet-thexchange, Inc.

The following sections of the Perfection Certificate of Arbinet-thexchange, Inc.
dated February 3, 2003 are amended as follows. All unamended sections or
subsections remain in effect.

1.   Names.

     (h)  The Company currently maintains its bank and investment accounts at:
     (l)  Bank Accounts - Fleet Bank, JP Morgan, Bank of New York, Natwest Bank
          Plc., Silicon Valley Bank
     2.   Investment Accounts - JP Morgan, Silicon Valley Bank

2.   Current Locations.

     (a)  The following is the mailing address of the Company:

     Mailing Address                          City            State
     ---------------                          ----            -----
     120 Albany Street, Tower II, Suite 450   New Brunswick   NJ

3.   Prior Locations.

     (a) (a) Set forth below is the information required by subparagraphs (a),
     (b), (c) and (d) of paragraph 2 with respect to each location or place of
     business previously maintained by the Company at any time during the past
     five (5) years in a state in which the Company that previously maintained a
     location or place of business:

Mailing Address                    City       State
---------------                    ----       -----
75 Broad Street, 20th Floor        New York   NY
33 Whitehall Street, 19th Floor    New York   NY
226 East 54th Street, 20th Floor   New York   NY<PAGE>
                                                                    EXHIBIT 10.8

                               ATEL VENTURES, INC.
                        MASTER LEASE AGREEMENT NO. ARBIX
                            Dated as of June 5, 2003

Between   ATEL VENTURES, INC.,        600 California Street, 6th Floor
          a California corporation,   San Francisco CA 94108-2733
          as Lessor ("Lessor")        Attention: General Counsel
                                      Tel: (415) 989-8800 Fax: (415) 989-3796
                                      Email: avi@atel.com

And       ARBINET-THEXCHANGE, INC.    120 ALBANY STREET
          a Delaware corporation,     TOWER II, 4TH FLOOR
          as Lessee ("Lessee")        NEW BRUNSWICK, NJ 08901
                                      Attention: Contract Compliance
                                      Tel: (732) 509-9140 Fax: (732) 509-9101
                                      Email: ContractCompliance@thexchange.com

NO INTEREST IN THE RENT DUE OR THE RIGHTS OF THE LESSOR UNDER ANY LEASE OF
EQUIPMENT CAN BE TRANSFERRED BY THE DELIVERY OF POSSESSION OF ANY COUNTERPART OF
THIS MASTER LEASE. SUCH AN INTEREST CAN BE TRANSFERRED ONLY BY DELIVERY OF
POSSESSION OF THE ORIGINAL SIGNED COUNTERPART OF AN EQUIPMENT SCHEDULE EXECUTED
PURSUANT HERETO.

The parties of this Master Lease Agreement ("Lease Agreement") hereto agree as
follows:

--------------------------------------------------------------------------------

1.   Lease:

     Lessor agrees to lease to Lessee, and Lessee agrees to lease from Lessor,
subject to satisfaction of the conditions set forth in Section 3 and any
Equipment Schedule, the personal property (including the Soft Equipment defined
below, the "Equipment") described in any Equipment Schedules executed pursuant
hereto substantially in the form of Exhibit A hereto. Any reference herein to a
"Lease" shall mean any Equipment Schedule, as it incorporates by reference all
the terms and conditions of this Lease Agreement, the Acceptance Certificates,
and any Exhibits, Riders, Supplements, amendments, or addendum thereto, if any.
Prior to the execution of an Equipment Schedule incorporating one or more
Acceptance Certificates, such Acceptance Certificates shall operate as a Lease
and incorporate by reference all the terms and conditions of this Lease
Agreement. To the extent that any of the personal property leased hereunder and
described as Equipment constitutes intangible personal property, warranty,
service or other contract rights, taxes paid or prepaid ("Soft Equipment"), then
this Lease shall constitute a transfer or license by the Lessor to the Lessee of
the rights to use or utilize such Soft Equipment during the Lease Term and all
the provisions of this Lease will apply to such license to the extent that they
are reasonably construed as applicable.

2.   Definitions:

     (a) "Acceptance Certificate" means the Certificate of Delivery and
Acceptance and Request for Advance in the form of Exhibit B hereto.

     (b) "Acceptance Date" means the date Lessee inspects all the Equipment and
deems it satisfactory for lease hereunder as indicated on the Acceptance
Certificate, or such other date as may be indicated in the applicable Equipment
Schedule.

     (c) "Advance" means the Equipment Cost under any Acceptance Certificate
which is funded by the Lessor.

     (d) "Advance Date" means the date of any Advances, which are made by Lessor
to Lessee, or any Vendor pursuant to an Acceptance Certificate.

     (e) "Basic Rent" means the amount indicated as the Basic Rent, due as
monthly, quarterly, semiannual, or annual payments, in advance or in arrears, as
set forth in the applicable Acceptance Certificate and/or Equipment Schedule.

     (f) "Basic Term" means the initial term of any Lease, as indicated on the
applicable Equipment Schedule.

     (g) "Commencement Date" means the first day of the calendar quarter
following the Acceptance Date, or such other date as may be indicated in the
applicable Equipment Schedule.

     (h) "Change in Control" means a change in the majority interest or control
of ownership of the Lessee in any one transaction or series of related
transactions, or sale, assignment, or acquisition of all, or substantially all,
of the property of Lessee by merger, consolidation or purchase.

     (i) "Daily Rent" means the daily equivalent of the initial Basic Rent.

     (j) "Equipment Cost" means the cost of the Equipment (including Soft
Equipment) described in any Equipment Schedule.

     (k) "Event of Default" means as defined in Section 9(a) hereof.

     (l) "Event of Loss" means as defined in Section 8(a) hereof.

     (m) "Fair Market Value" means as defined in Section 14(b) hereof.

     (n) "Guarantor" means a guarantor or surety of the obligations of the
Lessee hereunder, if any.

     (o) "Lease Term" means the Basic Term, Renewal Term, and any Supplemental
Term.

     (p) "Lessee Reports" means any financial statements, projections, budget,
business plan, private placement memorandum, due diligence materials,
prospectus, registration statements, or any other materials prepared by Lessee
and distributed to its investors, creditors, or Lessor

     (q) "Proposal Letter" means any letter issued by Lessor to Lessee
describing the basic terms of a proposed lease financing. To the extent there is
a conflict between the Proposal Letter and this Lease, the terms and conditions
of this Lease shall govern.

     (r) "Purchase Agreement" means the contract for sale entered into by the
Lessee and the Vendor, and shall include any and all purchase orders, purchase
agreements, invoices, and amendments to any of them.

     (s) "Purchase Agreement Assignment" means the assignment to the Lessor of
the Lessee's right under the Purchase Agreement, but not its obligations, to
purchase the Equipment in the form of Exhibit C hereto.

     (t) "Renewal Rent" means the amounts, if any, indicated on the applicable
Equipment Schedule or any Rider thereto, or any amendment thereof, or otherwise
in this Lease.

     (u) "Renewal Term" means the renewal term, if any, indicated on the
applicable Equipment Schedule or any Rider thereto, or any amendment thereof, or
otherwise in this Lease, and any holdover period beyond the expiration of the
Basic Term or the Renewal Term, if any.

                                   Page 1 of 8

<PAGE>

     (v) "Rent" means Basic Rent, Daily Rent, or Renewal Rent.

     (w) "Stipulated Loss Value" means the product of the corresponding
percentage indicated on the Rider to the applicable Equipment Schedule, or on
the Acceptance Certificate, for the Rent payment date immediately preceding the
date that the event which caused the Event of Loss or Event of Default occurred
times the Equipment Cost of the item of Equipment suffering the Event of Loss
(or of all Equipment in the event of an Event of Default.

     (x) "Supplemental Term" means the period from the earlier of the Advance
Date or the Acceptance Date to the Commencement Date.

     (y) "UCC" means the Uniform Commercial Code as enacted in California.

     (z) "Vendor" means the manufacturer, distributor, or retailer of the
Equipment.

3.   Term of Lease and Conditions Precedent:

     (a) Lease Term. The Lease Term, as to all Equipment designated on any
Equipment Schedule or Acceptance Certificate, shall include the Supplemental
Term commencing on the Advance Date for such Equipment, and shall continue for a
Basic Term equal to the initial period ending that number of months from the
Commencement Date as is specified in the applicable Equipment Schedule. The
Lease Term may also include the Renewal Term, if any, granted in the applicable
Equipment Schedule.

     (b) Procurement Delivery, and Acceptance. Prior to any Advance Date or
Acceptance Date, Lessee shall have ordered the Equipment from the Vendor
pursuant to one or more purchase orders or other contracts for sale ("Purchase
Agreements"). Lessee shall be solely responsible for the selection and ordering
of the Equipment. Prior to the earlier of the Advance Date, Acceptance Date, or
the date that the title to any Equipment shall have been transferred by the
Lessee pursuant to UCC (S)2-401, Lessee hereby assigns to Lessor all of its
rights, title, and interest, but none of its obligations, in the applicable
Purchase Agreement. Lessor hereby appoints Lessee as its attorney-in-fact and
agent to order and purchase the Equipment on behalf of Lessor as its undisclosed
agent. To further effectuate the intent of the parties herein, Lessee and Lessor
may additionally enter into a Purchase Agreement Assignment in the form of
Exhibit C. If, for any reason, the Lessee fails to irrevocably accept the
Equipment for Lease by executing an Equipment Schedule identifying the Equipment
for which Advances have been previously made by Lessor pursuant to any
Acceptance Certificate, then Lessee shall, upon demand by Lessor, reimburse
Lessor in full for those funds so advanced by paying to Lessor a Stipulated Loss
Value equal to not less than 103.64% of the Equipment Cost plus any unpaid Daily
Rent. In the event Lessee fails to pay such amount, Lessor may declare an Event
of Default and pursue its remedies under this Lease Agreement.

     (c) Obligation to Pay for Equipment. Notwithstanding anything to the
contrary, all Advances to be made by the Lessor hereunder are discretionary and
not mandatory and Lessor shall have no obligation to purchase the Equipment on
Lessee's behalf, or reimburse Lessee for Equipment previously purchased unless
all conditions precedent set forth below have been satisfied, and otherwise
Lessor, in its sole and absolute discretion, elects to do so: (i) Lessor and
Lessee shall have entered into mutually acceptable lease documentation,
including the Lease and other ancillary documents and instruments required by
Lessor, including sufficiently detailed invoices from the Vendor identifying the
Equipment and Equipment Cost, corporate resolutions and incumbency certificates
(substantially in the form of Exhibit D hereto), or other documents evidencing
the Lessee's authority to execute and deliver the Lease, opinion of Lessee's
counsel (substantially in the form of Exhibit E hereto), evidence of insurance
(substantially in the form of Exhibit F hereto) and "Accord" certificate,
appropriate waivers from all potential Equipment lien-holders, and UCC-1
Financing Statements; (ii) Lessee shall have either irrevocably accepted the
Equipment for lease hereunder, or requested an Advance on Equipment to be placed
under a Lease by executing an Acceptance Certificate; (iii) Lessor shall have
full legal right, title, and interest in and to the Equipment, free and clear
all liens, claims, and encumbrances, whatsoever, (iv) all representations and
warranties made under each Lease shall be true and correct, and there shall not
exist an Event of Default or any condition, event, or act which with notice or
lapse of time would become an Event of Default which has not been remedied or
waived, and Lessee shall have fully performed all terms and conditions required
of Lessee under the Lease; (v) there has not been any material adverse change in
Lessee's financial condition or business operations since the date of Lessor's
Proposal Letter; (vi) the Equipment Cost funded under any Equipment Schedule
shall be not less than $250,000; provided, however, Advances may be in amounts
not less than $100,000; (vii) the date of the Advance shall be within 180 days
of the date of this Lease Agreement; (viii) Lessor shall have approved the
purchase of the proposed Equipment in Lessor's sole discretion; (ix) no more
than 15% of the Equipment Cost shall constitute Soft Equipment (x) the funding
period for Advances shall not extend beyond July 31, 2003; and (xi) Lessee shall
provide to Lessor evidence satisfactory to Lessor that Lessee's $10,000,000
Series E-l equity financing is fully subscribed and funded.

4.   Rent, Taxes and Late Payments:

     (a) Rent. Daily Rent shall be due on all Advances made by Lessor pursuant
to any Acceptance Certificate and shall accrue from the Advance Date of any item
of Equipment at the Daily Rent set forth in the applicable Acceptance
Certificate multiplied by the number of days from (and including) the Advance
Date (but not including) the Commencement Date and shall be due and payable on
the first day of each month until the Commencement Date. The Basic Rent payable
hereunder during the Basic Term is as set forth in the Equipment Schedule.
Lessor and Lessee agree that the Basic Rent described in the Equipment Schedule
has a corresponding yield relationship to the U.S. Treasury obligation and with
the closest equivalent maturity as the applicable Lease Basic Term as reported
in The Wall Street Journal on the date of, and quoted in, Lessor's Proposal
Letter, and consequently, the Basic Rent, Lease Rate Factor, and Stipulated Loss
Values (and Renewal Rent, if applicable may be adjusted upward (and then fixed
for the Lease Term) by the Lessor on the date of preparation of the Equipment
Schedule, or alternatively, on the funding date by a Notification of Rent
Adjustment amendment prepared thereafter, to reflect a change on such date in
the reported yield of the U.S. Treasury obligation, with the equivalent term of
the U.S. Treasury obligation quoted in the Proposal Letter (or the closest term
to such original U.S. Treasury obligation in the event an identical term issue
is not reported, and in the event that two or more comparison Treasury
obligations are quoted with identical maturities, then with the "Asked" price
which is closest to par) in order to preserve Lessor's anticipated corresponding
yield relationship. Except as may otherwise be provided in any Equipment
Schedule, Basic Rent shall begin to accrue on the Commencement Date and shall be
due and payable by Lessee on the first day of each period (advance) or the last
day (arrears) of each period, as set forth in the applicable Equipment Schedule.
In addition to the Basic Rent and Daily Rent, Lessee shall pay Renewal Rent, if
any, due as indicated in this Lease Agreement, or on any Equipment Schedule, or
any Rider hereto or thereto. All Rent due by Lessee hereunder is an absolute and
unconditional obligation of Lessee which may not be abated or offset for any
reason whatsoever as provided in Section 10 hereof.

     (b) Taxes. In addition to the Rent set forth herein or in any Equipment
Schedule, Lessee shall pay to Lessor an amount equal to all taxes, fees,
expenses or charges paid, payable or required to be collected by Lessor, however
designated and whenever assessed, which are levied or based on the Rent, on the
Lease, on the Equipment Cost, or on the Equipment or on its purchase for lease
hereunder, or on its possession, storage, use, lease, operation, control,
delivery or value, including as a result of a sale-leaseback, or from the Lease
Term expiration, or earlier termination, or from the exercise of any early
termination, purchase, or renewal option granted in the Lease or otherwise, or
from any conveyance of title to Lessee or Lessee's designee; including, without
limitation, state and local sales, use,  privilege of doing business or excise
taxes, taxes based on gross revenue or receipts, any penalties or interest in
connection therewith or taxes or amounts in lieu thereof paid or payable by
Lessor in respect of the foregoing, but excluding solely taxes based on Lessor's
net income. Personal property taxes assessed on the Equipment during the term
hereof shall be the sole responsibility of, and shall be paid on demand by,
Lessee. Lessee agrees to file, on behalf of Lessor, all required property tax
returns and reports concerning the Equipment with all appropriate governmental
agencies, and, at Lessor's request, within not more than thirty (30) days after
Lessor's written request to send Lessor confirmation of such filing.
Alternatively, Lessor may file such property tax returns on behalf of Lessee for
a nominal service charge.

     (c) Late Payments. Interest on any past due Rent and other payments due and
payable shall accrue at the rate of 1-1/2% per month from the Rent or other
payment due date, or if such rate shall exceed the maximum rate allowed by law,
then at such maximum rate, and shall be payable on demand. Charges for taxes,
penalties and interest shall be promptly paid by Lessee.

5.   Installation, Use and Quiet Possession of Equipment:

     (a) Lessee, shall at all times maintain the Equipment in accordance with
the manufacturer's specifications and in accordance with prudent industry
standards

                                   Page 2 of 8

<PAGE>

and in accordance with this Lease, specifying maintenance, and return conditions
for the Equipment. Lessee shall use the Equipment solely for business purposes,
in compliance with the covenants and conditions of all insurance policies
required to be maintained by Lessee pursuant to the Lease. Lessee shall, at all
times, during the Lease Term or any Renewal Term, assure that the Equipment is
maintained in operation and service in its original intended use.

     (b) Any equipment, supplies spare or replacement parts or other items not
specified in the Equipment Schedule which are used on or in connection with the
Equipment must meet the specifications of the manufacturer and shall be acquired
by Lessee at its own expense. The Lessee shall at all times use the Equipment in
compliance with all laws and regulations of all federal, state, local and
foreign authorities having jurisdiction thereof.

     (c) Lessee will at all times keep the Equipment in its sole possession and
control. The Equipment shall not be moved from the location stated in the
applicable Equipment Schedule without the prior written consent of Lessor (said
consent not to be unreasonably withheld). The Equipment shall not be located
outside the continental United States of America.

     (d) After prior notice to Lessor, Lessee may, at its own expense, make
alterations in or add attachments to the Equipment, provided such alterations or
attachments do not interfere with the normal and satisfactory operation or
maintenance of the Equipment or with Lessee's ability to obtain and maintain the
maintenance contract required by Section 5(g) hereof. The manufacturer or other
organization selected by Lessee to maintain the Equipment ("Maintenance
Organization") may incorporate engineering changes or make temporary alterations
to the Equipment upon request of Lessee. Until such time as Lessee purchases the
Equipment at the end of the Lease Term, all such alterations and attachments,
(including but not limited to any additional switch ports that are added or
attached to the Equipment) that are not readily removable without causing
material damage to or impairing the original value or utility of the Equipment,
shall be and become the property of Lessor. At the option of Lessee, readily
removable alterations and attachments may be removed by Lessee and the Equipment
restored, at Lessee's expense, to its original condition as of the Acceptance
Date thereof, reasonable wear and tear only excepted, and upon the removal and
restoration, the alteration and/or attachment which was made by Lessee shall
become the property of Lessee.

     (e) So long as there shall not exist an Event of Default, or any condition,
event, or act which with notice or lapse of time would become an Event of
Default, Lessor or any Assignee shall not interfere with Lessee's use or
possession of the Equipment during the Basic Term.

     (f) Lessee shall, during the term of this Lease, at its expense, keep the
Equipment in excellent operating order and condition, reasonable wear and tear
excepted, and shall make all necessary adjustments, repairs and replacements,
and Lessee shall not use or permit the Equipment to be used in any manner or for
any purpose for which, in the opinion of the manufacturer, the Equipment is not
designed or reasonably suitable. Lessee will at all times operate, use, and
maintain the Equipment as represented by Lessee in its request for proposal
and/or quotes or as otherwise represented herein or in any other instrument or
document prepared by Lessee or its agents. In no event shall Lessee operate, use
or maintain the Equipment less favorably than Lessee would or should operate,
use or maintain its own equipment.

     (g) Lessee shall, during the term of this Lease, at its own expense, enter
into and maintain in force a contract with the manufacturer or the Maintenance
Organization covering at least prime shift maintenance of each item of
Equipment. Such contract shall commence upon expiration of the manufacturer's
warranty period, if any, relating to such item. Lessee shall furnish Lessor with
a copy of such contract(s).

     (h) Upon an Event of Default, at Lessor's demand, pursuant to Section
9(b)(ii) hereof, Lessee shall, at its expense, deliver the Equipment and all of
the service records and all software which is part of the operating system of
the Equipment and software documentation subject thereto to Lessor at the
location designated by Lessor in the same operating order, repair, condition and
appearance as on the Acceptance Date, reasonable wear and tear only excepted,
with all engineering and safety changes prescribed by the manufacturer or
Lessee's Maintenance Organization incorporated therein. At the time of return,
the Equipment must be able to perform the function that it was originally
intended to perform without additional maintenance. If any computer software
requires relicensing when removed from Lessee's premises, Lessee shall negotiate
on behalf of Lessor a license to use the Equipment and shall bear all costs of
such relicensing. Lessee shall, provide such termination, arrange and pay for
any repairs and changes as are necessary for the Equipment to satisfy the return
condition stated herein and for the manufacturer or Maintenance Organization to
accept the Equipment under contract maintenance at its then standard rates.

6.   Leasehold Rights and Inspection:

     (a) The Equipment shall remain personal property regardless of the manner
in which it may be installed or attached. Lessee shall, at Lessor's request,
affix to the Equipment, tags, decals or plates furnished by Lessor, indicating
Lessor's ownership and Lessee shall not permit their removal or concealment.

     (b) Lessee shall keep the Equipment free and clear of all liens and
encumbrances except liens or encumbrances arising through the actions or
omissions of Lessor which are not otherwise the obligation of Lessee to clear or
satisfy hereunder. LESSEE SHALL NOT SELL, CONVEY, TRANSFER, PART WITH POSSESSION
OF, OR ASSIGN OR OTHERWISE ENCUMBER THIS LEASE OR ANY OF ITS RIGHTS HEREUNDER OR
SUBLEASE THE EQUIPMENT, OR SUFFER A CHANGE IN CONTROL, INCLUDING A CHANGE IN
MAJORITY INTEREST OR CONTROL OF ITS OWNERSHIP IN ANY ONE TRANSACTION OR SERIES
OF RELATED TRANSACTIONS, OR BECOME THE SUBJECT MATTER OF, OR ENTER INTO ANY
MERGER OR ACQUISITION TRANSACTION WITH ANY OTHER ENTITY WHICH RESULTS IN SUCH
OTHER ENTITY OBTAINING OWNERSHIP OR CONTROL OF OVER FIFTY PERCENT (50%) OF THE
EQUITY OF THE LESSEE WITHOUT THE PRIOR WRITTEN CONSENT OF LESSOR (SAID CONSENT
NOT TO BE UNREASONABLY WITHHELD, provided, however. (A) Lessee may sublease the
Equipment in the ordinary course of its business upon the prior written consent
of Lessor which consent to sublease will be granted if: (i) the sublease is
expressly subject and subordinate to the terms of the applicable Lease, (ii)
Lessee assigns its rights in the sublease to Lessor as additional collateral and
security using documentation acceptable to Lessor, (iii) Lessor in its sole
discretion determines that it is satisfied with the creditworthiness of
sublessee, (iv) Lessor, in its sole discretion, determines it is satisfied with
the sublessee's satisfaction of the maintenance, insurance, and return
obligations of the Equipment pursuant to the Lease, (v) Lessee executes sublease
documents acceptable to Lessor, and (vi) prior to placement of the Equipment in
such proposed new location, Lessee obtains third party waiver agreements
allowing Lessor to exercise its rights under this Lease with respect to the
Equipment, in form reasonably acceptable to Lessor, from any holders of
interests in the real property on which the Equipment is located; and (B) In the
event Lessor declines to consent to any Change of Control of Lessee, Lessee
shall prepay the Lease in full by paying to Lessor the Stipulated Loss Value as
of the Rent payment date immediately preceding the consummation of the Change in
Control.. No permitted assignment or sublease shall relieve Lessee of any of its
obligations hereunder.

     (c) Lessor or its agents shall have free access to the Equipment upon
forty-eight (48) hours advance notice and any and all records thereto at all
reasonable times for the purpose of inspection and for any other purpose
contemplated in this Lease. Such inspections shall be at Lessor's cost and
expense, except that whenever an Event of Default or any condition, event, or
act which with notice or lapse of time would become an Event of Default exists,
the reasonable inspection costs and expenses shall be borne by Lessee.

     (d) Lessee shall immediately notify Lessor of all material details
concerning any material damage to, or loss of, the Equipment arising out of any
event or occurrence whatsoever, including but not limited to, the alleged or
apparent improper manufacture, functioning or operation of the Equipment.

7.   No Warranties By Lessor:

     Lessee warrants that, at the Acceptance Date thereof, it shall have (a)
thoroughly inspected the Equipment; (b) determined for itself that all items of
Equipment are of a size, design, capacity and manufacture specified in the
purchase order to the supplier or manufacturer; and (c) satisfied itself that
the Equipment is suitable for Lessee's purposes based on its acceptance testing.
LESSOR IS FINANCING THE EQUIPMENT FOR LESSEE "AS IS", "WHERE IS" AND NOT BEING
THE MANUFACTURER OF THE EQUIPMENT, THE MANUFACTURER'S AGENT OR THE SELLER'S
AGENT, MAKES NO WARRANTY OR REPRESENTATION WHATSOEVER, EITHER EXPRESS OR
IMPLIED, INCLUDING, BUT NOT LIMITED TO, AS TO THE EQUIPMENT'S MERCHANTABILITY,
FITNESS FOR A PARTICULAR PURPOSE, DESIGN, CONDITION, QUALITY, CAPACITY, MATERIAL
OR WORKMANSHIP OR AS TO PATENT INFRINGEMENT

                                   Page 3 of 8

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OR THE LIKE, it being agreed that all such risks, between Lessor and Lessee, are
to be borne by Lessee. Lessee agrees to look solely to the manufacturer or to
suppliers of the Equipment for any and all warranty claims and any and all
warranties made by the manufacturer or the supplier of Lessor are, to the extent
to which the same may be assignable, hereby assigned to Lessee for the term of
the applicable Equipment Schedule. Lessee agrees that Lessor shall not be
responsible for the delivery, installation, maintenance, operation or service of
the Equipment or for delay or inadequacy of any or all of the foregoing. Lessor
shall not be responsible for any direct or consequential loss or damage
resulting from the installation, operation or use of the Equipment or otherwise.
Lessee will defend, indemnify and hold Lessor harmless against any and all
suits, judgments, claims, demands and liabilities of any kind and nature
including without limitation claims relating to environmental discharge, cleanup
or compliance, and claims arising out of or in connection with the design,
manufacture, possession or operation of the Equipment, including environmental,
product, or strict liability) and all costs and expenses whatsoever to the
extent they may be incurred or suffered by Lessor or Assignee in connection
herewith (including, without limitation, reasonable attorneys' fees and
expenses), fines, penalties (and other charges of applicable governmental
authorities), licensing fees relating to any item of Equipment, damage to or
loss or property (including without limitation consequential or special damages
to third parties or damages to Lessee's property), or bodily injury to or death
of any person (including, without limitation, any agent or employee of Lessee).
Such indemnities shall continue in full force and effect, notwithstanding the
expiration or termination of this Lease. The provisions of this Section 7 are in
addition to, and not in limitation of, the provisions of Section 12.

8.   Risk of Loss on Lessee:

     (a) Beginning on the Acceptance Date thereof and continuing until the
Equipment is returned to Lessor as provided in this Lease, Lessee relieves
Lessor of responsibility for all risks of physical damage to or loss or
destruction of the Equipment, howsoever caused (including without limitation,
accident, theft, misplacement, condemnation, seizure, forfeiture and
abandonment) ("Event of Loss"). During the term of this Lease as to any
Equipment Schedule, Lessee shall, at its own expense, keep in effect all risk
and public liability insurance policies covering the Equipment designated in
each Equipment Schedule. Lessee confirms that it carries and will throughout the
term of this Lease continue to carry at least $3,000,000 in public liability
insurance. Lessor shall not require additional public liability insurance so
long as Lessee continues to carry public liability insurance in such amount. The
all risk insurance policy shall be for an amount not less than the Stipulated
Loss Value. Lessor, its successors and assigns and/or such other party as may be
designated by any thereof to Lessee, in writing, shall be named as additional
insured and/or loss payees on such policies, which shall be written by an
insurance company of recognized responsibility which is reasonably acceptable to
Lessor. Evidence of such insurance coverage shall be furnished to Lessor no
later than the Acceptance Date set forth in the Equipment Schedule(s) and, from
time to time, thereafter as Lessor may reasonably request. Such policies shall
provide that no less than thirty (30) days written notice shall be given Lessor
and any other party named as loss payee prior to cancellation of such policies
for any reason. If the Lessee fails to provide evidence of such insurance or to
deliver evidence of renewal of each such policy then Lessee agrees to pay Lessor
a non-compliance fee equal to .5% of the Equipment Cost for all Equipment
covered under this Lease each month until such evidence is provided to Lessor.
Lessee hereby irrevocably appoints Lessor or any other party named as loss payee
as Lessee's attorney-in-fact coupled with an interest, so long as a default or
Event of Default hereunder exists and is continuing to negotiate and make claim
for, receive payment of, and execute any and all documents that may be required
to be provided to the insurance carrier in substantiation of any such claim for
loss or damage under said insurance policies, and to endorse Lessee's name to
any and all drafts or checks in payment of the loss proceeds.

     (b) If any item of Equipment is damaged or suffers an Event of Loss, Lessee
shall give to Lessor immediate notice thereof and this Lease shall continue in
full force and effect without any abatement of Rent. Lessor shall determine,
within ten (10) days after the date of notification of the occurrence of such
damage or Event of Loss, whether such item of Equipment can be repaired. In the
event Lessor determines that such item of Equipment can be repaired, Lessee
shall cause such item of Equipment to be promptly repaired. In the event Lessor
determines that the item of Equipment cannot be repaired, Lessee shall at
Lessor's election, either: (i) promptly replace such item of Equipment and
convey title to such replacement to Lessor free and clear of all liens and
encumbrances, and this Lease shall continue in full force and effect as though
such damage or destruction had not occurred; or (ii) pay to Lessor an amount
equal to the Stipulated Loss Value for the item of Equipment for the Rent due
date immediately preceding the Event of Loss and this Lease will terminate as to
the item of Equipment suffering the Event of Loss and the Rent under the
applicable Equipment Schedule shall be reduced thereafter pro rata by the
reduction of the original Equipment Cost of the item of Equipment suffering the
Event of Loss. In the event option (ii) above is selected by Lessee, and Lessee
shall have paid to Lessor the Stipulated Loss Value, then Lessor shall transfer
to Lessee all of Lessor's rights, title and interest in the Equipment on an
"as-is", "where-is" basis without recourse or warranty whatsoever. All proceeds
of insurance received by Lessor, the designated loss payee, or Lessee under the
policy referred to in the preceding paragraph of this Section shall be applied
toward the cost of any such repair or replacement so long as Lessee shall not be
in default of its obligations hereunder.

9.   Events of Default and Remedies:

     (a) Events of Default. The occurrence of any one of the following shall
constitute an Event of Default hereunder:

          (i) Lessee fails to pay an installment of Rent or other payment when
due and such nonpayment shall continue for five (5) business days after Lessee's
receipt of written notice of non-payment from Lessor.

          (ii) Lessee attempts to remove, sell, transfer, encumber, sublet or
part with possession of the Equipment or any items thereof, except as expressly
permitted herein.

          (iii) Lessee breaches or shall have breached any material
representation or warranty made or given by Lessee in this Lease or in any other
document furnished to Lessor in connection herewith (provided that any breach of
a representation or warranty that has a bearing on the Lessor's credit,
economics, residual, title or collateral security considerations under this
Lease shall be deemed to be material), or any such representation or warranty
shall be untrue or, by reason of failure to state a material fact or otherwise,
shall be misleading or any of the statements or other documents or information
submitted at any time heretofore or hereafter by Lessee to Lessor shall be
untrue or, by reason of failure to state a material fact or otherwise, shall be
misleading.

          (iv) Lessee shall fail to observe or perform any of the other
obligations required to be observed or performed by Lessee hereunder and such
failure shall continue uncured for thirty (30) days after written notice thereof
to Lessee by Lessor or the then Assignee hereof.

          (v) Lessee fails to maintain at all times an EBITDA of not less than
One Dollar ($1.00), to be tested on a monthly and quarterly basis, provided,
however, Lessee may suffer one (1) monthly EBITDA loss per quarter, provided
such loss does not exceed Two Hundred Thousand Dollars ($200,000).

          (vi) Lessee shall suffer or have suffered, in the reasonable judgment
of Lessor, a material adverse change in its financial condition since either the
date of the Proposal Letter or the date of the Lessee Reports submitted by
Lessee to Lessor, and as a result thereof Lessor in good faith deems itself to
be insecure.

          (vii) Lessee shall be in material breach of or in default under any
lease, loan, or other agreement or obligation at any time executed with Lessor.

          (viii) Lessee ceases doing business as a going concern, makes an
assignment for the benefit of creditors, admits in writing its inability to pay
its debts as they become due, files a voluntary petition in bankruptcy, is
adjudicated a bankrupt or insolvent, files a petition seeking for itself any
reorganization, arrangement, composition, readjustment, liquidation, dissolution
or similar arrangement under any present or future statute, law or regulation or
files an answer admitting the material allegations of the petition filed against
it in any such proceeding, consents to or acquiesces in the appointment of a
trustee, receiver, or liquidator of it or of all or any substantial part of its
assets or properties, or if it or its shareholders shall take any action looking
to its dissolution or liquidation.

          (ix) Within thirty (30) days after commencement of any proceedings
against Lessee seeking reorganization, arrangement, readjustment, liquidation,
dissolution or similar relief under any present or future statute, law or
regulation, such proceedings shall not have been dismissed, or if within thirty
(30) days after the appointment without Lessee's consent or acquiescence of any
trustee, receiver or liquidator of it or of all or any substantial part of its
assets and properties, such appointment shall not be vacated.

                                   Page 4 of 8

<PAGE>
          (x) Lessee becomes the subject matter of, or enters into any merger or
acquisition transaction with any other entity which results in a Change in
Control, without the prior written consent of Lessor, which shall not be
unreasonably withheld.

          (xi) Lessee fails to obtain the consent of the Holders of its
Preferred Stock as required under Section 1.12 of that certain Fourth Amended
and Restated Investors' Rights Agreement ("IRA") to the granting of registration
rights pursuant to the terms and conditions of the IRA and a Joinder Agreement
entered into between Lessor and Lessee within sixty (60) days after the date of
the first Advance under this Master Lease.

          Any Event of Default shall be deemed material and a substantial
impairment of Lessor's interests for the purpose of this Lease, the UCC, and any
other applicable law.

     (b) Remedies. Upon the occurrence of an Event of Default, Lessor may at its
option do any of the following: (i) by notice to Lessee terminate this Lease as
to any or all Equipment Schedules; (ii) whether or not this Lease is terminated
as to any or all Equipment Schedules, take possession of any or all of the
Equipment listed on any or all Equipment Schedules, wherever situated, and for
such purpose, enter upon any premises without liability for so doing or Lessor
may cause Lessee and Lessee hereby agrees, to return said Equipment to Lessor as
provided in this Lease; (iii) recover from Lessee, as liquidated damages for
loss of a bargain and not as a penalty, an amount equal to the Stipulated Loss
Value of all Equipment calculated as of the Rent payment date preceding the date
that the event which resulted in the Event of Default occurred, which payment
shall become immediately due and payable; and (iv) sell, dispose of, hold, use
or lease any Equipment as Lessor in its sole discretion may determine. Lessor
reserves the right, in its sole and absolute discretion, to control the timing
and negotiate the terms of any releasing or re-sale of any or all of the
Equipment at a public auction or in a private sale, at such time, on such terms
and with such notice as Lessor shall in its sole and absolute discretion deem
commercially reasonable.

     (c) Mitigation. In the event that Lessee shall have paid to Lessor or its
Assignee, (as hereinafter defined), the liquidated damages referred to in
Section 9(b)(iii) above, and Lessee shall have previously returned the Equipment
to Lessor in accordance with Section 9(b)(ii) above, then Lessor or its Assignee
shall pay to Lessee, promptly after receipt thereof, all sale or rental proceeds
received from any sale or re-letting of the Equipment during the balance of the
Basic Term (after deduction of all unreimbursed damages, costs and expenses
incurred by Lessor as a result of the Event of Default; or other sums due Lessor
by Lessee under the Lease) said amount never to exceed the amount of the
liquidated damages paid by Lessee, Lessor shall use commercially reasonable
efforts to sell, re-lease or otherwise use or dispose of the Equipment in
mitigation of damages to the extent required by law (however, Lessor shall not
be obligated to give preference to the sale, lease or other disposition of the
Equipment over the sale, lease or other disposition of similar equipment owned
or leased by Lessor).

     (d) Other Damages. Notwithstanding the exercise by Lessor or its Assignee
of any of the remedies found in Section 9(b) above, Lessee shall, in any event
remain fully liable for reasonable damages as provided by law and for all
reasonable costs of collection and reasonable expenses incurred by Lessor or its
Assignee on account of such Event of Default including but not limited to all
reasonable expenses of selling or leasing the Equipment (including reasonable
broker's and sales representative's fees and commissions), cleaning and
repainting, storage costs, repossession costs, court costs and reasonable
attorney's fees. Lessee hereby agrees that, in any event, it will be liable for
any deficiency after any lease or other disposition of the Equipment. The rights
afforded Lessor hereunder shall not be deemed to be exclusive, but may be
exercised concurrently and shall be in addition to any other rights or remedies
provided to creditors or lessors under the UCC or otherwise by law or equity.

10.  Net Lease:

     It is understood and agreed that this is a net lease, and that, as between
Lessor and Lessee, Lessee shall be responsible for all costs and expenses of
every nature whatsoever arising out of or in connection with or related to this
Lease or the Equipment, or its possession, ownership, or use (including, but not
limited to, taxes, insurance, maintenance, transportation in and out, rigging,
drayage, packing, installation and disconnect charges). Lessee's obligations
hereunder (including its obligation to pay Rent when and as due without notice
or demand, or any other sum due hereunder upon demand) are absolute and
unconditional, and (i) may not be terminated, rescinded or revoked for any
reason whatsoever, except pursuant to the express provisions hereof, and (ii)
shall not be subject to any abatement, reduction, recoupment, defense, offset or
counterclaim available to Lessee for any reason whatsoever including operation
of law, defect in the Equipment failure of Lessor or any Assignee to perform any
of its obligations hereunder or for any other cause or reason whatsoever,
whether similar or dissimilar to the foregoing. Lessee hereby waives any and all
defenses or claims Lessee may assert against Lessor or any Assignee, whether now
or in the future, and which would prevent Lessee from performing its obligations
hereunder, including, without limitation, defect in the Equipment, interference
with the Lessee's use, operation or possession of the Equipment, failure of the
Lessor or of any Assignee to perform any of its obligations hereunder, the
liability or indebtedness of Lessor or any Assignee to Lessee or any other
person, or the bankruptcy, insolvency or default of the Lessor or any Assignee.
In the event this Lease is terminated prior to its expiration by agreement or
otherwise between Lessor or Lessee or for any other reason whatsoever,
including, without limitation, early termination, casualty loss, or default,
then Lessee shall be responsible and agrees to pay any and all reasonable costs
and expenses and/or liabilities of Lessor as a result thereof, including taxes
and any pre-payment penalties, fees or charges assessed by any Assignee against
Lessor or Lessee. Lessee hereby agrees that in the event that Lessee fails to
pay or perform any obligation under this Lease, Lessor may, at its option, pay
or perform said obligation and any payment made or expense incurred by Lessor in
connection therewith shall become additional Rent which shall be due and payable
by Lessee upon demand.

11.  Assignment:

     (a) Lessee agrees that Lessor may transfer or assign all or any part of
Lessor's right, title and interest in, under or to the Equipment and this Lease
and any or all sums due or to become due pursuant to any of the above, to any
third party (the "Assignee") for any reason and the Assignee may so reassign and
transfer. Lessee agrees that upon receipt of written notice from Lessor or
Assignee of such assignment, Lessee shall perform all of its obligations
hereunder for the benefit of Assignee and any successor assignee and, if so
directed, shall pay all sums due or to become due hereunder directly to the
Assignee or to any other party designated by the Assignee. Lessee hereby
covenants, represents and warrants as follows, and agrees that the Assignee and
any successor assignee shall be entitled to rely on and shall be considered a
third party beneficiary of the following covenants, representations and
warranties: (i) Lessee's obligations hereunder are absolute and unconditional;
(ii) may not be terminated, rescinded or revoked for any reason whatsoever,
except pursuant to the express provisions hereof; (iii) shall not be subject to
any abatement, reduction, recoupment, defense, offset or counterclaim available
to Lessee for any reason whatsoever including operation of law, defect in the
Equipment, failure of Lessor or Assignee to perform any of its obligations
hereunder or for any other cause or reason whatsoever, whether similar or
dissimilar to the foregoing; (iv) unless otherwise provided in the Notice and
Acknowledgment of Assignment, Lessee shall not look to Assignee or any successor
assignee to perform any of Lessor's obligations hereunder; (v) Lessee will not
amend or modify the Lease without the prior written consent of the Assignee; and
(vi) Lessee will send a copy to Assignee and any successor assignee of each
notice which Lessee sends to Lessor.

     (b) Upon receipt of notice of any such assignment, Lessee agrees to execute
and deliver to Lessor such documentation as Assignee or any successor assignee
may reasonably require, including but not limited to a Notice and Acknowledgment
of Assignment in the form of Exhibit D hereto which requires Lessee to make
certain representations or reaffirmations as to some of the basic terms and
covenants contained in this Lease, and (ii) an opinion of counsel for the
Lessee. Unless otherwise indicated in the Notice and Acknowledgment of
Assignment, Lessor shall not be relieved of any of its obligations hereunder,
and the rights of Lessee hereunder shall not be impaired.

12.  Tax Indemnity:

     If as a result of any misrepresentation or any act or failure to act of
Lessee occurring or failing to occur on or after the Acceptance Date, Lessor or
its Assignee, if any, shall not be entitled for each of its taxable years (or
portions thereof) in which the Lease is in effect, to a depreciation deduction
with respect to the full cost of the Equipment which is based on a method of
accelerated depreciation available under the Modified Accelerated Cost Recovery
System provided by Section 168 or any successor provisions of the Internal
Revenue Code (a "Tax Loss"), then Lessee agrees to pay Lessor or said Assignee
upon demand a sum which, after deduction of all tax required to be paid by
Lessor or said Assignee in respect to the receipt thereof, shall be equal, to
the additional income taxes paid or payable by Lessor, or said Assignee, as a
result of the Tax Loss, together with any interest or penalty which may be
assessed in connection with any of the foregoing. Lessee shall not be

                                   Page 5 of 8

<PAGE>

required to pay Lessor or said Assignee the additional monies pursuant to this
paragraph, if the Tax Loss shall result solely because of the occurrence of any
of the following events: (i) Lessor or said Assignee shall fail to claim such
depreciation deduction in its income tax returns of the appropriate year or
shall fail to follow the proper procedure in claiming such depreciation
deduction, and such failure to claim or to follow such procedure, as the case
may be, shall preclude Lessor or said Assignee from claiming such depreciation
deduction: (ii) Lessor or said Assignee shall fail to have sufficient income to
benefit from the depreciation deduction; (iii) Lessor or said Assignee shall at
any time when no Event of Default has occurred and is continuing, without the
written consent of Lessee, voluntarily transfer legal title to the Equipment, or
any portion thereof to another, and such transfer by Lessor or said Assignee
shall be the direct cause of such Tax Loss; or (iv) a change in Section 168 of
the Internal Revenue Code occurring after the Commencement Date hereof.

13.  Representations and Warranties of Lessee:

     The Lessee represents and warrants to the Lessor that the following are
true and correct on the date the Lessee executes any Lease:

          (i) The Lessee is duly formed and validly existing under the laws of
the State of its organization, and has the full power and authority and legal
right to carry on its business as is now conducted, and is duly qualified to do
business in the jurisdictions where the Equipment is or will be operated.

          (ii) The Lease has been duly authorized, executed and delivered by the
Lessee, and, constitutes the valid, legal and binding agreement of the Lessee,
enforceable against the Lessee in accordance with its terms.

          (iii) The execution and delivery by the Lessee of the Lease and the
Lessee's compliance with all of the provisions of the Lease are within the
powers of the Lessee, and will not, to the best of Lessee's knowledge, conflict
with or result in a breach of any presently existing law or governmental rule,
regulation order, writ, injunction or decree.

          (iv) No authorization or approval from, consent of, or filing,
registration or qualification with, any state, federal or local governmental or
public body or authority, except as has been obtained or made, is necessary for
the execution or delivery by the Lessee of the Lease, or the validity of the
Lease or the operation and leasing of the Equipment by the Lessee.

          (v) The Lessee, has not directly or indirectly offered, sold,
encumbered or transferred any interest in the Equipment or solicited offers to
buy, encumber or transfer any such interest from, anyone other than the Lessor.
The Vendor of the Equipment is not affiliated with the Lessee and, to the best
of Lessee's knowledge, Lessor has received the benefit of any and all discounts
or rebates thereto, and Lessee has not received directly any such rebates,
discounts, kickbacks or reimbursements.

          (vi) Lessor's title to each item and Equipment will be free of all
claims, liens and encumbrances arising by, through or under the Lessee other
than pursuant to the terms of this Lease.

          (vii) The Lessee is not in violation of any order of any court,
arbitrator or governmental body material laws, ordinances or governmental rules
or regulations (domestic or foreign) to which it is subject, or with respect to
any material loan agreement, debt instrument or contract with a supplier or
customer of Lessee and has not failed to obtain or apply for any licenses,
permits, franchises or other governmental authorizations necessary to the
ownership of its property or to the conduct of its business.

          (viii) There are no suits or proceedings pending or, to the knowledge
of the Lessee, threatened in any court or before any regulatory commission,
board or other governmental administrative agency against or affecting the
Lessee which if determined adversely to Lessee would materially adversely affect
Lessee's business as presently conducted or its ability to perform its
obligations hereunder.

          (ix) Neither the Lease, nor any written statement furnished to the
Lessor by the Lessee hereby, contains any untrue statement of a material fact or
omits a material fact necessary to make the statements contained therein not
misleading.

          (x) All applications, financial statements and Lessee Reports, and all
information hereafter furnished by Lessee and Guarantor to Lessor will be, true
and correct in all material respects as of the date submitted;

          (xi) As of the date hereof, the date of any Equipment Schedule and of
any Acceptance Date, there has been no material adverse change in any matter
stated in such Lessee Reports, which have been submitted, by Lessee and/or any
Guarantor to Lessor.

          (xii) Neither Lessee nor any Guarantor has omitted to state any
material fact which would make any of the foregoing false or misleading in light
of the circumstances under which made.

          (xiii) The Lessee's principal place of business, chief executive
office, and state of incorporation (as such terms are used in the UCC) are
indicated in the heading hereof.

          (xiv) Since the date of the Proposal Letter issued by Lessor in
connection with this transaction, and as of the date of Lessee's latest Lessee
Reports, which have been previously submitted by Lessee to Lessor, there has not
been any material adverse change in the contemplated business, operations,
properties or financial condition of the Lessee.

          (xv) The Lessee will use the Equipment in accordance with its original
request for quote or proposal, or any other written or oral representations made
concerning the usage of the Equipment. The depreciable life of the Equipment
using MACRS is as indicated on the Equipment Schedule. The Equipment will be
used "predominately" in the United States as such term is used in the Internal
Revenue Code.

          (xvi) The Equipment shall at all times remain the property of Lessor.
Lessee will at all times protect and defend at its own cost and expense, the
ownership of Lessor against all claims, liens and legal processes of creditors
of Lessee and other persons claiming by, through or under Lessee, and keep the
Equipment free and clear from all such claims, liens and processes except as
otherwise set forth herein. The Equipment is and shall remain personal property,
and not part of any real estate and Lessee shall obtain from all applicable real
property interest holders appropriate consents, waivers, and releases.

14.  End-of-Lease Options:

          Lessee's End-of-Lease position with respect to any Lease is as set
forth on the applicable Lease Schedule.

15.  Miscellaneous:

     (a) Stock Warrant. Lessee agrees that it will issue to Lessor upon
execution of this Lease Agreement a five percent (5%) warrant for the purchase
of Lessee's stock (the "Warrant"), in the form of the Warrant Agreement attached
hereto as Exhibit H. Lessor has determined that the value of the Warrant
hereunder would be $77,835 using the Black-Scholes model.

     (b) Choice of Law. No consent or approval provided for herein shall be
binding upon Lessor unless signed on its behalf by an officer of Lessor. This
Lease Agreement and each Lease shall be deemed to have been made in the State of
California and shall be governed in all respects by the laws of such State.
Lessor and Lessee hereby submit themselves to the jurisdiction of the State and
Federal courts in San Francisco, California for any matter or controversy
arising from any Lease. In the event any provision of this Lease is enforced in
a court of law, or any other judicial or administrative setting, then the party
succeeding in such matter or controversy shall also be awarded all of its
attorney's fees and court costs and other expenses incurred in the pursuit or
defense of such matter or controversy (including, without limitation, the
defense of any counter-claims forwarded by the losing party).

     (c) Entire Agreement. This Lease constitutes the entire agreement between
Lessee and Lessor with respect to the Equipment, supersedes all prior oral or
written agreements and understandings, and no covenant, condition or other term
or provision hereof may be waived or modified orally.

     (d) Notices. All notices hereunder shall be in writing, and any such notice
shall become effective (i) the following day upon delivery thereof to an
overnight mail or courier service, (ii) in the case of notice by first class
United States mail, three days after being so deposited in the United States
mail, or (iii) in the case of notice by facsimile transmission, immediately upon
transmission, in each case addressed to the following party at its respective
address set forth below or at such other address as such parry may from time to
time designate by written notice to the other party to the address indicated in
the heading of this Lease Agreement.

                                   Page 6 of 8

<PAGE>
     (e) Successors and Assigns. This Lease shall be binding upon and inure to
the benefit of Lessor and Lessee and their respective successors and assigns
(including any subsequent assignee of Assignee).

     (f) Unenforceability. If any term or provision of this Lease or the
application thereof to any person is, to any extent, invalid or unenforceable,
the remainder of this Lease, or the application of such provision to the person
other than those to which it is invalid or unenforceable, shall not be affected
thereby, and each provision of this Lease shall be valid and be enforced to the
fullest extent permitted by law, provided however, that to the extent that the
provisions of any such applicable law can be waived, they are hereby waived by
the Lessee.

     (g) Waivers and Consents. No waiver, approval, or consent of any of the
terms and conditions hereof shall be effective unless in writing and signed by
the party against whom such waiver, approval, or consent is sought to be
enforced. Any waiver, approval or consent granted by the Lessor are only
effective if signed by an authorized officer of the Lessor. Any waiver of the
terms hereof shall be effective only in the specific instance and for the
specific purpose given.

     (h) Further Assurances. Lessee agrees to execute any and all other
documents, instruments and agreements, reasonably requested by the Lessor in
furtherance of the intent of the parties herein. Lessor is hereby authorized by
Lessee to cause this Lease or other instruments, including Uniform Commercial
Code Financing Statements, to be filed or recorded for the purpose of showing
Lessor's interest in the Equipment and Lessee agrees that Lessor may execute
such instruments for and on behalf of Lessee. Lessee shall pay Lessor for any
costs or fees relating to any filings hereunder including, but not limited to
actual out of pocket costs, fees, searches, documentation preparation,
documentary stamps, privilege taxes and reasonable attorneys' fees.

     (i) Conflict. In the event of any conflict between the terms and conditions
of this Lease Agreement and the terms and conditions of any Equipment Schedule
or Rider hereto, the terms and conditions of such Equipment Schedule or Rider
shall prevail.

     (j) Financial Statements. During the term of this Lease, Lessee hereby
agrees to deliver to Lessor or Assignee and any successor assignee a copy of
Lessee's and Guarantor's (i) annual audited financial statements within
one-hundred and twenty (120) days after the end of its fiscal year; (ii)
quarterly unaudited financial statement within sixty (60) days after the end of
its fiscal quarter; and (iii) at the request of Lessor, monthly unaudited
financial statement within forty-five (45) days after the end of each month or
at such other times as Lessor may reasonably request. So long as there are
amounts due Lessor under this Lease, Lessee shall supply Lessor with such other
financial and operating performance data as is provided to its outside investors
or commercial lenders and, if applicable, required to be provided to
shareholders by the Security and Exchange Commission, and Lessee shall
immediately notify Lessor of any material adverse change in its financial
condition or business prospects.

     (k) Survival. Any obligation required to be performed by Lessee under this
Lease, which by their nature, or expressly survive the termination of this Lease
(including, without limitation, the obligations identified in Sections 4, 5, 6,
7, 8, 9, 10, and 12), shall survive the expiration or other termination of this
Lease for the period prescribed by applicable law.

16.  Finance Lease Status; Security Interest:

     Lessor and Lessee agree that if Article 2A - Leases of the UCC governs the
terms of this Lease, then this Lease will be deemed a "finance lease". By
executing this Lease, Lessee acknowledges that Lessor has advised Lessee: (i) of
the identity of the Vendor; that Lessee may have rights under the "supply
contract" as defined in the UCC, pursuant to which Lessor is purchasing the
Equipment; and (iii) that Lessee may contact the Vendor for a description of any
such rights. TO THE EXTENT PERMITTED BY APPLICABLE LAW, LESSEE WAIVES ANY AND
ALL RIGHTS AND REMEDIES CONFERRED UPON A LESSEE BY THE CODE INCLUDING SECTIONS
2A - 508 THROUGH 522 THEREOF.

TO THE EXTENT THAT THIS LEASE IS CONSTRUED TO BE A LEASE INTENDED AS SECURITY,
LESSEE HEREBY GRANTS TO LESSOR A SECURITY INTEREST IN THE EQUIPMENT AND HEREBY
AGREES TO FILE ANY AND ALL UCC FINANCING STATEMENTS REQUIRED IN ACCORDANCE WITH
SECTION 15(H) HEREOF.

                  (Remainder of page intentionally left blank)

                                   Page 7 of 8

<PAGE>

NO INTEREST IN THE RENT DUE OR THE RIGHTS OF THE LESSOR UNDER ANY LEASE OF
EQUIPMENT CAN BE TRANSFERRED BY THE DELIVERY OF POSSESSION OF ANY COUNTERPART OF
THIS MATTER LEASE. SUCH AN INTEREST CAN BE TRANSFERRED ONLY BY DELIVERY OF
POSSESION OF THE ORIGINAL SIGNED COUNTERPART NO. 1 OF AN EQUIPMENT SCHEDULE
EXECUTED PURSUANT HERETO.

LESSOR:                                 LESSEE:

ATEL VENTURES, INC.                     ARBINET-THEXCHANGE, INC.

By:  /s/ Dean Cash                      By: /s/ Peter P. Sach
    --------------------------------       ------------------------------------
Name: Dean Cash                         Name: Peter P. Sach
Title: President                        Title: CAO & Treasurer

Attachments:
     Exhibit A - Form of Equipment Schedule
     Exhibit B - Form of Acceptance Certificate
     Exhibit C - Form of Purchase Agreement Assignment
     Exhibit D - Form of Corporate Resolution and Incumbency Certificate
     Exhibit E - Form of Opinion of Lessee's Counsel
     Exhibit F - Form of Evidence of Insurance
     Exhibit G - Form of Notice and Acknowledgement of Assignment
     Exhibit H - Form of Warrant Agreement

                                   Page 8 of 8

<PAGE>

                                  Exhibit A to
 Master Lease Agreement No. ARBIX dated as of June 5, 2003, by and between ATEL
        VENTURES, INC. ("Lessor") and ARBINET-THEXCHAGNE, INC. ("Lessee")

<TABLE>
<CAPTION>

                         Invoice    Invoice                                       Serial
        Vendor              No.       Date        Equipment Description     Qty    No(s)     Total Cost     Sales Tax
----------------------------------------------------------------------------------------------------------------------
<S>                       <C>      <C>         <C>                           <C>  <C>      <C>             <C>
Strategic Technologies    44888    30-Apr-03   9900V Storage Array System    1             $1,035,498.79   ($44,549.95)
                                                                                           -------------   -----------
                                                      GRAND TOTALS                         $1,035,498.79   ($44,549.95)
                                                                                           =============   ===========

<CAPTION>
                           Labor
                          and/or
                         Shipping                                            Funded To   Equipment
                            and                                 Advanced     Lessee or    Schedule
        Vendor           Handling   Soft Cost    Final Cost       Cost         Vendor       No.
--------------------------------------------------------------------------------------------------
<S>                      <C>          <C>       <C>           <C>              <C>           <C>
Strategic Technologies   ($950.00)    $0.00     $989,998.84   $989,998.84      Vendor        1
                         --------     -----     -----------   -----------
                         ($950.00)    $0.00     $989,998.84   $989,998.84
                         ========     =====     ===========   ===========
</TABLE>

                         EQUIPMENT COST = $1,035,498.79

Equipment Location:
460 Herndon Parkway, Suite 150, Herndon, VA 20170

Lessor:                                Lessee:
ATEL Ventures, Inc.                    Arbinet-thexchange, Inc.

By:  /s/ Dean Cash                     By: /s/ Peter P. Sach
    -------------------------------       -------------------------------------
Name: Dean Cash                        Name: Peter P. Sach
Title: President                       Title: CAO & Treasurer

Date: 6/5/03                           Date: 5-Jun-03

                                        1

<PAGE>

COUNTERPART NO. 3 OF 3 MANUALLY EXECUTED COUNTERPARTS. ONLY THE MANUALLY
EXECUTED COUNTERPART NUMBERED "1" SHALL BE DEEMED "CHATTEL PAPER" AS SUCH TERM
IS DEFINED IN THE UNIFORM COMMERCIAL CODE AND IS SUFFICIENT TO TRANSFER LESSOR'S
INTEREST, OR TO GRANT A SECURITY INTEREST HEREIN.

                           EQUIPMENT SCHEDULE NO. 1 to
                 MASTER LEASE AGREEMENT NO. ARBIX (the "Lease")
                    dated as of June 5, 2003, by and between
     ATEL VENTURES, INC. ("Lessor") and ARBINET-THEXCHANGE, INC. ("Lessee")

1.    Equipment Description:      One(1) 9900V Array System (as further
                                  described on the Exhibit A attached hereto)

2.    Equipment Cost:             $1,035,498.79

3.    Equipment Location:         460 Herndon Parkway, Suite 150, Herndon,
                                  VA 20170

4.    Acceptance Date:            The earlier to occur of the following: (i) the
                                  date determined by the manufacturer or
                                  Maintenance Organization to be the date of
                                  installation; (ii) the seventh (7th) day
                                  following delivery of the Equipment to the
                                  location set forth in Paragraph 2 hereof;
                                  (iii) the funding date for the Equipment; or
                                  (iv) the date indicated on the Acceptance
                                  Certificate executed pursuant hereto as the
                                  Acceptance Date.

5.    Commencement Date:          The Commencement Date shall be the first day
                                  of the calendar month following the Acceptance
                                  Date of the Equipment, July 1, 2003.

6.    Basic Term:                 Thirty-six (36) months

7.    Basic Rent:                 In Advance, $33,185.67 per month due on the
                                  first day of each month. The first and last
                                  Basic Rental payments shall be due on the
                                  Commencement Date, and at Lessor's option, may
                                  be deducted from the Equipment Cost.

8.    Lease Rate Factor:          The Basic Rent is conditional upon Lessor
                                  acquiring the Equipment at the Equipment Cost
                                  indicated above. Lessor and Lessee agree that
                                  the Basic Rent described herein is based on a
                                  Lease Rate Factor of 3.2048% which equates to
                                  $32.05 for each full $1,000 of Equipment Cost
                                  and that the Basic Rent shall be adjusted
                                  upwards or downwards by such Lease Rate Factor
                                  to the extent by which the actual purchase
                                  price paid by Lessor for the Equipment
                                  ("Actual Cost") is greater or lesser than the
                                  Equipment Cost indicated above, and
                                  thereafter, the Actual Cost shall be the
                                  Equipment Cost. Lessor and Lessee further
                                  agree that the Basic Rent and Lease Rate
                                  Factor described herein may be adjusted in
                                  accordance with the provisions of Section 4(a)
                                  of the Lease.

9.    MACRS:                      The Depreciable Life of the Equipment is 3
                                  years.

10.   Riders:                     Rider No. 1 to the Equipment Schedule -
                                  Stipulated Loss Values is incorporated herein
                                  by reference.
                                  Rider No. 2 to the Equipment Schedule - Sale
                                  Leaseback Addendum
                                  Rider No. 3 to the Equipment Schedule - Full
                                  Warranty Bill of Sale are incorporated herein
                                  by reference.

11.   Lease Agreement:            All of the terms, covenants and conditions set
                                  forth in the Lease are incorporated herein by
                                  reference as if the same had been set forth
                                  herein in full.

12.   End-Of-Lease Requirement:   At the expiration of the Basic Term of this
                                  Lease, Lessee shall purchase all, but not less
                                  than all, of the Equipment covered under this
                                  Schedule for the Equipment's fair market
                                  value, which the parties agree shall be not
                                  more than or less than ten percent (10%) of
                                  the original Equipment Cost. Any Equipment
                                  purchase election shall be a purchase of the
                                  Equipment AS IS, WHERE-IS. Upon Lessor's
                                  receipt of the purchase price, Lessor shall
                                  issue to Lessee an equipment bill of sale,
                                  transferring title free and clear of any liens
                                  arising through Lessor, to the Equipment to
                                  Lessee. Lessee shall be responsible for all
                                  applicable taxes in connection with any
                                  Equipment purchase.

<PAGE>

Lessor shall provide a Notification of Schedule Adjustment to Lessee should the
Commencement Date or the Basic Rent be adjusted as provided for in Paragraphs 7
or 8 above.

ATEL VENTURES, INC.                      ARBINET-THEXCHANGE, INC.

By: /s/ Dean Cash                        By: /s/ Peter P. Sach
   --------------------------------         -----------------------------------
Name: Dean Cash                          Name: Peter P. Sach
Title: President                         Title: CAO & Treasurer

Date: 6/5/03                             Date: June 5, 2003

<PAGE>

                                   RIDER NO. 1
                           TO EQUIPMENT SCHEDULE NO. 1
                          TO MASTER LEASE AGREEMENT NO.
                                      ARBIX
                 dated as of June 5, 2003 (the "Lease") between
      ATEL VENTURES, INC. as Lessor and ARBINET-THEXCHANGE, INC. as Lessee

Stipulated Loss Value: Pursuant to the provision of the second paragraph of
Section 8 of the above referenced Lease, in the event any item or items of
Equipment suffers an Event of Loss, as reasonably determined by Lessee, in lieu
of replacing such item or items of Equipment, Lessee may pay to Lessor or the
then Assignee of the Lease, if any, an amount equal to the Stipulated Loss Value
(determined in the manner hereinafter set forth) for each such item of Equipment
so destroyed or damaged to the extent not paid by insurance. Upon such payment
by Lessee, the above referenced Equipment Schedule shall terminate with respect
to the item or items of Equipment so destroyed or damaged.

The Stipulated Loss Value shall be an amount equal to the percentage indicated
below of the cost of the item of Equipment so destroyed or damaged for the
payment immediately preceding the Event of Loss:

                          Stipulated Loss
Payment                 Value - Percentage
Number                        of Cost
---------------------   ------------------
Prior to Commencement         103.64
1                             101.40
2                              99.13
3                              96.83
4                              94.51
5                              92.15
6                              89.76
7                              87.34
8                              84.89
9                              82.41
10                             79.90
11                             77.36
12                             74.79
13                             72.19
14                             69.56
15                             66.89
16                             64.20
17                             61.47
18                             58.70
19                             55.91
20                             53.08
21                             50.21
22                             47.32
23                             44.40
24                             41.46
25                             38.49
26                             35.48
27                             32.44
28                             29.37
29                             26.27
30                             23.14
31                             19.98
32                             16.78
33                             13.54
34                             10.26
35                             10.12
36 and thereafter              10.00

ARBINET-THEXCHANGE, INC.

By: /s/ Peter P. Sach
   -----------------------------------
Name: Peter P. Sach
Title: CAO & Treasurer

Date: June 5, 2003

<PAGE>

                                   RIDER NO. 2
                           TO EQUIPMENT SCHEDULE NO. 1

               SALE LEASEBACK ADDENDUM TO EQUIPMENT SCHEDULE NO. 1
                  TO MASTER EQUIPMENT LEASE AGREEMENT NO ARBIX
                            DATED AS OF June 5, 2003

This Sale and Leaseback Agreement is entered into as of 5 day of June, 2003 by
and between ARBINET-THEXCHANGE, INC., a corporation duly organized and validly
existing under the laws of the state of Delaware (hereinafter referred to as the
"Seller"), and ATEL VENTURES, INC., a corporation duly organized and validly
existing under the laws of California (hereinafter referred to as the "Buyer")
and incorporates by reference the terms and conditions of the Lease, as defined
below.

     WHEREAS, Buyer is purchasing from Seller the equipment listed in Exhibit A
attached hereto and made a part hereof (hereinafter referred to as the
"Equipment"); and

     WHEREAS, Seller desires to use the Equipment under the terms and conditions
of the Master Lease Agreement No. ARBIX (the "Master Lease") dated as of June 5,
2003, as it relates to Equipment Schedule No. 1 (the "Equipment Schedule")
thereto (together the Master Lease and Equipment Schedule are referenced to
herein as the "Lease").

     NOW THEREFORE, it is agreed as follows:

     1.   On or before the date hereof, Seller has purchased and acquired the
          Equipment set forth on Exhibit A from the manufacturers or vendors
          (the "Vendors") described on said Exhibit. Seller hereby agrees to
          sell and convey to Buyer and Buyer agrees to purchase from seller the
          Equipment set forth on Exhibit A. Subject to the terms and conditions
          of the Lease, Buyer, as Lessor, agrees to lease and Seller, as Lessee,
          agrees to hire from Lessor the Equipment set forth on Exhibit A. The
          Acceptance Date under the Lease for such Equipment shall be June 5,
          2003.

     2.   The aggregate Vendor's list and normal selling price for die Equipment
          set forth on Exhibit A is $1,035,498.79, on or before the date hereof.
          Seller has acquired this Equipment from the Vendor for such amount,
          net of any Volume Purchase Discounts, rental credits or sales taxes.
          Buyer's Purchase Price for this Equipment shall be an amount equal to
          $1,035,498.79.

     3.   On or after the date hereof, Seller shall deliver to Buyer copies of
          the Vendor invoice marked paid, Vendor Bill of Sale to Seller covering
          the Equipment, Bill of Sale and invoice from Seller to Buyer for the
          payment due hereunder and an Acceptance Certificate due under the
          Lease showing the Acceptance Date. Buyer will, within fifteen (15)
          business days of receipt of all of the documents delivered by Seller
          as described above, remit to Seller the Purchase Price for the
          Equipment purchase.

     4.   Seller hereby represents and warrants to Buyer that on the date hereof
          and the Acceptance Date, the Equipment is in good order and repair and
          that there are no claims, liens, or security interests on or relation
          to the Equipment which will survive upon Buyer's payment in full of
          the Purchase Price.

     5.   The warranties, representations and agreements herein contained shall
          survive the passing of title.

     6.   Seller shall pay any and all applicable Federal, State, County or
          local taxes and any and all present or future taxes or other
          government charges levied upon or created by this sale of the
          Equipment, including sales, use, gross receipts or occupation taxes
          due upon the purchase by Buyer. Seller shall have no liability for
          taxes which are based solely upon or measured by the net income of the
          Buyer.

     7.   To induce the Buyer to enter this Sale and Leaseback Agreement and
          with the knowledge that the Buyer is doing so in reliance upon these
          representations and warranties, Seller represents and warrants to the
          Buyer that: (i) it has the authority to enter into this Sale and
          Leaseback Agreement; (ii) the person who has executed this Sale and
          Leaseback Agreement and who shall execute the Bill of Sale, has the
          authority to bind the Seller; (iii) the lease, this sale and the
          execution of tin's Sale and Leaseback. Agreement will not materially
          violate any indenture of other agreement to which the Seller is a
          party or any law, Certificate of Incorporation or By-Laws under which
          the Seller operates; (iv) this Sale and Leaseback Agreement and the
          Bill of Sale, when executed and delivered to the Buyer, will be a duly
          authorized, valid and binding agreement of the Seller enforceable
          against the Seller in accordance with the respective terms thereof;
          (v) that Seller has and is transferring to Buyer title to the
          Equipment free and clear of all liens and encumbrances of any kind or
          description and this transaction may not be set aside for any reason
          whatsoever; (vi) the Seller has complied with all applicable bulk sale
          transfer laws and fraudulent conveyance statutes and indemnifies Buyer
          for any loss Buyer may suffer as a result of a breach hereof.

     8.   Seller hereby assigns to Buyer, all of its right, title and interest
          in and to the agreements warranties applicable to the Equipment, and
          to the extent permitted by applicable law. Seller further assigns to
          Buyer any and all licenses to use the Equipment for its current
          function, and Buyer shall have the right, without additional expense,
          to continue using such license after expiration or earlier termination
          of the Lease.

     9.   This Sale and Leaseback Agreement and all documents referred to herein
          shall inure to the benefit of and shall be binding upon Seller and
          Buyer, their subsidiaries, successors and assigns. Neither party shall
          assign any interest in this Sale and Leaseback Agreement or in the
          documents described herein without the other's written consent, which
          consent shall not be unreasonably withheld except Seller agrees that
          Buyer may assign to an affiliate.

<PAGE>

     10.  The entire agreement between the parties with respect to the subject
          matter hereof is contained in the Master Lease Agreement, Equipment
          Schedules and this Sale and Leaseback Agreement. There are no
          understandings, agreements, representations or warranties, expressed
          or implied, not specified herein, respecting this Sale and Leaseback
          Agreement or the Equipment purchased hereunder. Buyer shall not be
          liable for any indirect, special or consequential damages, in
          connection with or arising out of the furnishing, performance or use
          of any item of Equipment or services provided for in this Sale and
          Leaseback Agreement, nor shall Buyer be liable in whole or in part for
          any event beyond its control.

IN WITNESS WHEREOF, the parties hereto have executed this Sale and Leaseback
Agreement as of this 5 day of June, 2003.

(Seller)                                 (Buyer)

By: /s/ Dean Cash                        By: /s/ Peter P. Sach
   ---------------------------------        -----------------------------------
Name: Dean Cash                          Name: Peter P. Sach
Title: President                         Title: CAO & Treasurer

<PAGE>

                                   RIDER NO. 3
                           TO EQUIPMENT SCHEDULE NO. 1
                  TO MASTER EQUIPMENT LEASE AGREEMENT NO. ARBIX
                            DATED AS OF JUNE 5, 2003

                                  FULL WARRANTY
                                  BILL OF SALE

     KNOW ALL MEN BY THESE PRESENTS, that ARBINET-THEXCHANGE, INC. a Delaware
corporation located at 120 Albany Street, Tower II, 4th Floor, New Brunswick, NJ
08901 ("Seller"), for good and valuable consideration received from ATEL
VENTURES, INC. a California corporation ("Buyer"), the receipt and sufficiency
of which is hereby acknowledged, has bargained, sold, transferred, assigned, set
over, and conveyed, unto the Buyer, its successors and assigns forever, free and
clear of all liens, claims, and encumbrances of any nature whatsoever, all of
Seller's rights, title and interest in and to the personal property described on
the attached Exhibit "A" incorporated herein by reference (the "Equipment").

     TO HAVE AND TO HOLD the Equipment unto the Buyer, its successors, and
assigns, to its and their own use and behalf forever.

     Seller hereby affirms, represents, and warrants that it has not made any
prior sale, assignment, or transfer of the Equipment and that Seller has the
full right, title, and interest in and to the Equipment and will convey such
title to Buyer hereby free and clear of all, liens, encumbrances of any kind,
including, without limitation, any domestic or foreign tax claims against the
Equipment prior to, or resulting from, this conveyance.

     Seller shall indemnify, defend, and hold Buyer harmless from and against
any and all claims or liabilities resulting from any misrepresentation by, and
or breach of warranty, covenant, or agreement of Seller set forth herein or in
the Sale Leaseback Agreement dated as of June 5, 2003 between Seller and Buyer.

     Seller, for itself and its successors and assigns, further covenants and
agrees to do, execute, and deliver, or to cause to be done, executed, and
delivered, all such further acts, transfers, and assurances, reasonably
requested by Buyer for the better assuring, conveying, and confirming unto Buyer
and its successors and assigns, the Equipment hereby bargained, sold assigned,
transferred, set over, and conveyed, as Buyer and its successors and assigns
shall request.

     This Bill of Sale and the representations, warranties, and covenants herein
contained shall inure to the benefit of Buyer and its successors and assigns,
shall be binding upon Seller and its successors, assigns.

     IN WITNESS WHEREOF, Seller has caused this Bill of Sale to be executed as
of this June 5, 2003.

Seller:

ARBINET-THEXCHANGE, INC.

By: /s/ Peter P. Sach
   ----------------------------------
Name: Peter P. Sach
Title: CAO & Treasurer

<PAGE>

                 MASTER LEASE AGREEMENT NO. ARBIX (the "Lease")
                     dated as of June 5, 2003 by and between
 ATEL VENTURES, INC. (the "Lessor") and ARBINET-THEXCHANGE, INC. (the "Lessee")

                     CERTIFICATE OF DELIVERY AND ACCEPTANCE
                         AND REQUEST FOR ADVANCE NO. 1-1

     WHEREAS, ARBINET-THEXCHANGE, INC. ("Lessee") has executed or will execute
an Equipment Schedule No. 1 to a certain Master Lease Agreement dated as of June
5, 2003, (the Equipment Schedule, as it incorporates or will incorporate the
term of the Lease Agreement, hereinafter referred to as the "Lease") between
itself and ATEL VENTURES, INC. ("Lessor"), and

     WHEREAS, said Equipment Schedule lists or will list certain Equipment
leased thereunder more fully described on Exhibit "A" hereto ("Equipment");

     NOW, THEREFORE, (i) Lessee requests that Lessor immediately make payments
and/or advances to the Vendor of the Equipment pursuant to the terms and in the
amounts indicated on the attached invoice(s) totaling $1,035,498.79 ("Equipment
Cost", please see attached Exhibit "A") (The date of any such payment on advance
shall be known as "Advance Date"); and (ii) Lessee acknowledges (where
applicable) delivery, receipt and installation of all Equipment listed on said
Equipment Exhibit A at the location indicated on the attached Exhibit A, which
Equipment, delivery, and installation has been inspected and found satisfactory.
On the Acceptance Date indicated below, Lessee affirms that the Equipment has
been "placed in service" as such term is used in the Internal Revenue Code.

     Lessee agrees that pursuant to the terms of the Lease the Basic Rent for
the Equipment accepted hereunder is $33,185.67 per month, and that such Basic
Rent is due monthly in advance without right of deduction, offset, abatement,
defense, counterclaim or demand whatsoever, from the earlier of the Advance Date
or the Acceptance Date and on the first day of each month thereafter until the
Commencement Date of die applicable Equipment Schedule. If for any reason the
Lessee and the Lessor fail to execute the Equipment Schedule which covers the
Equipment accepted hereunder, then Lessee shall, upon demand by Lessor,
reimburse Lessor in full for the Equipment Cost by paying to Lessor the
Stipulated Loss Value of the Equipment equal to not less than 103.64% of the
Equipment Cost plus any unpaid Rent or, at Lessor's option, Lessor may declare
an Event of Default and pursue its remedies under the Lease.

     Lessee confirms that the Equipment is insured with the Lessor designated as
Loss Payee/Additional Insured.

     IN ADDITION, LESSEE HAS BEEN ADVISED BY LESSOR THAT THE EQUIPMENT COVERED
BY SUCH LEASE IS SUBJECT TO THE EXPRESS DISCLAIMER BY LESSOR OF ALL EXPRESS
WARRANTIES AND ALL IMPLIED WARRANTIES INCLUDING, WITHOUT LIMITATION, THE IMPLIED
WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

     Lessee confirms having made for its own records a copy of this Acceptance
Certificate contemporaneously with its execution. This disclaimer of express and
implied warranties has been discussed between the undersigned and Lessor and has
been specifically bargained for by the undersigned and Lessor with respect to
the lease of the Equipment particularly described in the Lease.

                                         By: /s/ Peter P. Sach
                                            -----------------------------------
                                         Name: Peter P. Sach
                                         Title: CAO & Treasurer

                                         Acceptance Date: June 5, 2003

<PAGE>

                       NOTIFICATION OF RENTAL ADJUSTMENT
                  AND AMENDMENT TO EQUIPMENT SCHEDULE NO. 1 TO
                        MASTER LEASE AGREEMENT NO. ARBIX

     THIS NOTIFICATION OF RENTAL ADJUSTMENT AND AMENDMENT TO EQUIPMENT SCHEDULE
NO. 1 TO MASTER LEASE AGREEMENT NO. ARBIX ("Amendment") dated June 24, 2003 (the
Equipment Schedule, as it incorporates by reference the terms and conditions of
the Master Lease Agreement, hereinafter is known as the "Lease") is made and
entered into as of this 5th day of June, 2003, by and between ATEL VENTURE FUND,
LLC and ATEL CAPITAL EQUIPMENT FUND IX, LLC (as successors in interest by
assignment from ATEL Ventures, Inc.), a California corporation, with its
principal place of business at 600 California Street, 6th Floor, San Francisco,
CA 94108 (together "Lessors") and ARBINET-THEXCHANGE, INC., a Delaware
corporation with its principal place of business at 120 Albany Street, Tower II,
4th Floor, New Brunswick, NJ 08901 ("Lessee").

     WHEREAS, Lessors and Lessee have entered into the Lease; and

     WHEREAS, Lessors and Lessee now desire to amend the Lease as hereinafter
set forth.

     NOW THEREFORE, the parties hereto agree as follows:

     1.   Paragraph 2 of the Equipment Schedule, "Equipment Cost" is hereby
          amended from $1,035,498.79 to $990,948.84 (as further described on the
          attached Exhibit A).

     2.   Paragraph 7 of the Equipment Schedule "Basic Rent" is hereby amended
          from $33,185.67 to $31,757.93.

     Except as expressly amended herein, all the terms and conditions of the
Lease shall continue in full force and effect.

     All capitalized terms used herein and not otherwise defined shall have the
same meaning as in the Lease.

     IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of
this 24 day of June, 2003.

ATEL VENTURE FUND, LLC                           ARBINET-THEXCHANGE, INC.

by:  ATEL Financial Services, LLC, its Manager
by:  ATEL Leasing Corporation, its Manager
("Lessor")                                       ("Lessee")

By:     /s/ Paritosh K. Choksi                   By:    /s/ Peter P. Sach
    ------------------------------------             ---------------------------
Title: Executive Vice President                  Title: CAO & TREASURER

                                       -1-

<PAGE>

ATEL Capital Equipment Fund IX, LLC

by:  ATEL Financial Services, LLC, its Manager
by:  ATEL Leasing Corporation, its Manager
("Lessor")

By:    /s/ Paritosh K. Choksi
    ------------------------------------
Title: Executive Vice President

                                       -2-

<PAGE>

                                  Exhibit A to
    Master Lease Agreement No. ARBIX dated as of June 1, 2003, by and between
      ATEL VENTURES, INC. ("Lessor") and ARBINET-THEXCHAGNE, INC. (Lessee")

<TABLE>
<CAPTION>

                         Invoice    Invoice                                       Serial
        Vendor             No.        Date        Equipment Description     Qty   No(s).      Total Cost
---------------------------------------------------------------------------------------------------------
<S>                       <C>      <C>         <C>                           <C>   <C>      <C>
Strategic Technologies    44888    30-Apr-03   9900v Storage Array System    1     10461    $1,035,498.79
                                                                                            -------------
                                                      GRAND TOTALS                          $1,035,498.79
                                                                                            =============

<CAPTION>
                                         Labor
                                        and/or
                                       Shipping                             Funded To   Equipment
                                          and                               Lessee or    Schedule
        Vendor            Sales Tax    Handling   Soft Cost    Final Cost     Vendor        No.
-------------------------------------------------------------------------------------------------
<S>                      <C>           <C>          <C>       <C>             <C>           <C>
Strategic Technologies   ($44,549.95)  ($950.00)    $0.00     $989,998.84     Vendor        1
                         -----------   --------     -----     -----------
                         ($44,549.95)  ($950.00)    $0.00     $989,998.84
                         ===========   ========     =====     ===========
</TABLE>

                            EQUIPMENT COST BREAKDOWN
     $989,998.84 (Final Cost) + $950.00 (Shipping & Handling) = $990.948.84
                                (Equipment Cost)

Equipment Location:
460 Herndon Parkway, Suite 150, Herndon, VA 20170

Lessor                                   Lessee:
ATEL Ventures, Inc.                      Arbinet-thexchange, Inc.

By: Patriosh K. Choksi                   By:
    ----------------------------------       -----------------------------------
Title: Executive Vice President          Title: CAO & Treasurer

Date: 6/24/03                            Date: 6/24/03

<PAGE>

COUNTERPART NO. 3 OF 3 MANUALLY EXECUTED COUNTERPARTS. ONLY THE MANUALLY
EXECUTED COUNTERPART NUMBERED "1" SHALL BE DEEMED "CHATTEL PAPER" AS SUCH TERM
IS DEFINED IN THE UNIFORM COMMERCIAL CODE AND IS SUFFICIENT TO TRANSFER LESSOR'S
INTEREST, OR TO GRANT A SECURITY INTEREST HEREIN.

                           EQUIPMENT SCHEDULE NO. 2 to
                 MASTER LEASE AGREEMENT NO. ARBIX (the "Lease")
                    dated as of June 5, 2003, by and between
     ATEL VENTURES, INC. ("Lessor") and ARBINET-THEXCHANGE, INC. ("Lessee")

1.    Equipment Description:      Telecom Switch and Various Back Up Equipment
                                  (as further described on the Exhibit A
                                  attached hereto)

2.    Equipment Cost:             $1,309,051.16

3.    Equipment Location:         75 Broad Street, Floor 20, New York,
                                  NY 10004-2490

4.    Acceptance Date:            The earlier to occur of the following: (i) the
                                  date determined by the manufacturer or
                                  Maintenance Organization to be the date of
                                  installation; (ii) the seventh (7th) day
                                  following delivery of the Equipment to the
                                  location set forth in Paragraph 2 hereof;
                                  (iii) the funding date for the Equipment; or
                                  (iv) the date indicated on the Acceptance
                                  Certificate executed pursuant hereto as the
                                  Acceptance Date.

5.    Commencement Date:          The Commencement Date shall be the first day
                                  of the calendar month following the Acceptance
                                  Date of the Equipment, August 1, 2003.

6.    Basic Term:                 Thirty-six (36) months

7.    Basic Rent:                 In Advance, $41,952.47 per month due on the
                                  first day of each month. The first and last
                                  Basic Rental payments shall be due on the
                                  Commencement Date, and at Lessor's option, may
                                  be deducted from the Equipment Cost.

8.    Lease Rate Factor:          The Basic Rent is conditional upon Lessor
                                  acquiring the Equipment at the Equipment Cost
                                  indicated above. Lessor and Lessee agree that
                                  the Basic Rent described herein is based on a
                                  Lease Rate Factor of 3.2048% which equates to
                                  $32.05 for each full $1,000 of Equipment Cost
                                  and that the Basic Rent shall be adjusted
                                  upwards or downwards by such Lease Rate Factor
                                  to the extent by which the actual purchase
                                  price paid by Lessor for the Equipment
                                  ("Actual Cost") is greater or lesser than the
                                  Equipment Cost indicated above, and
                                  thereafter, the Actual Cost shall be the
                                  Equipment Cost. Lessor and Lessee further
                                  agree that the Basic Rent and Lease Rate
                                  Factor described herein may be adjusted in
                                  accordance with the provisions of Section 4(a)
                                  of the Lease.

9.    MACRS:                      The Depreciable Life of the Equipment is 3
                                  years.

10.   Riders:                     Rider No. 1 to the Equipment Schedule -
                                  Stipulated Loss Values is incorporated herein
                                  by reference.
                                  Rider No. 2 to the Equipment Schedule -
                                  Sale Leaseback Addendum Rider No. 3 to the
                                  Equipment Schedule - Full Warranty Bill of
                                  Sale are incorporated herein by reference.

11.   Lease Agreement:            All of the terms, covenants and conditions set
                                  forth in the Lease are incorporated herein by
                                  reference as if the same had been set forth
                                  herein in full.

12.   End-Of-Lease Requirement:   At the expiration of the Basic Term of this
                                  Lease, Lessee shall purchase all, but not less
                                  than all, of the Equipment covered under this
                                  Schedule for the Equipment's fair market
                                  value, which the parties agree shall be not
                                  more than or less than ten percent (10%) of
                                  the original Equipment Cost. Any Equipment
                                  purchase election shall be a purchase of the
                                  Equipment AS IS, WHERE-IS. Upon Lessor's
                                  receipt of the purchase price, Lessor shall
                                  issue to Lessee an equipment bill of sale,
                                  transferring title free and clear of any liens
                                  arising through Lessor, to the Equipment to
                                  Lessee. Lessee shall be responsible for all
                                  applicable taxes in connection with any
                                  Equipment purchase.

<PAGE>

Lessor shall provide a Notification of Schedule Adjustment to Lessee should the
Commencement Date or the Basic Rent be a adjusted as provided for in Paragraphs
7 or 8 above

ATEL VENTURES, INC.                      ARBINET-THEXCHANGE, INC.

By: /s/ Vasco H. Morais                  By: /s/ Peter P. Sach
    ----------------------------------       -----------------------------------
Name: Vasco H. Morais, Esq.              Name: Peter P. Sach
Title: Senior Vice President             Title: CAO & Treasurer

By: 7/9/03                               By: 7-9-03

                                  Exhibit A to
    Master Lease Agreement No. ARBIX dated as of June 5, 2003, by and between
     ATEL VENTURES, INC. ("Lessor") and ARBINET-THEXCHAGNE, INC. ("Lessee")

<PAGE>

<TABLE>
<CAPTION>

                        Invoice    Invoice                                               Serial       Total       Sales
        Vendor             No.      Date          Equipment Description            Qty   No(s).        Cost        Tax
--------------------------------------------------------------------------------------------------------------------------
<S>                       <C>     <C>         <C>                                   <C>  <C>      <C>             <C>
Santera Systems, Inc.     2525    10-Mar-03           Santera One Switch            1             $1,130,039.00   $0.00

Santera Systems, Inc.     2686    28-Apr-03       Box Circuit Packs - Packet
                                                          Matrix One                4             $  418,679.00   $0.00

Santera Systems, Inc.     2686    28-Apr-03      TDM and Box Packfill - 3 Port
                                                           DS3 Cards                6

Santera Systems, Inc.     2686    28-Apr-03      TDM and Box Packfill, Packet
                                                          Matrix One                4

Santera Systems, Inc.     2686    28-Apr-03     TDM and Box Packfill, OC12C ATM
                                                         Superslot NIC              2

Santera Systems, Inc.     2686    28-Apr-03   TDM and Box Packfill, Voice Server
                                                            Module                  2

                                                         GRAND TOTALS                             $1,548,718.00   $0.00

<CAPTION>
                          Labor
                         and/or
                        Shipping                                                   Funded To   Equipment
                           and                                        Advanced     Lessee or    Schedule
        Vendor          Handling     Soft Cost       Final Cost         Cost         Vendor       No.
--------------------------------------------------------------------------------------------------------
<S>                       <C>      <C>             <C>             <C>               <C>           <C>
Santera Systems, Inc.     $0.00     ($424,883.77)  $  705,155.23   $  705,155.23     Lessee        2

Santera Systems, Inc.
                          $0.00    $        0.00   $  418,679.00   $  418,679.00     Lessee        2

Santera Systems, Inc.
                                                                                                   2

Santera Systems, Inc.
                                                                                                   2

Santera Systems, Inc.
                                                                                                   2

Santera Systems, Inc.
                                                                                                   2

                          $0.00     ($424,883.77)  $1,123,834.23   $1,123,834.23
</TABLE>

                            EQUIPMENT COST BREAKDOWN
     $1,123,834.23 (Advanced Cost) + $185,216.93 (Soft Cost) = $1,309,051.16
                                (Equipment Cost)

Equipment Location
75 Board Street, Floor 20, New York, NY 10004-2490

Lessor:                                 Lessee:

ATEL Ventures, Inc.                     Arbinet-thexchange, Inc.

By: /s/ Vasco H. Morais, Esq.            By: /s/ Peter P. Sach
    --------------------------------        ------------------------------------
Title: Senior Vice President            Title: CAO & TREASURER

Date: 7/9/03                            Date: 7-9-03

<PAGE>

                                   RIDER NO. I
                           TO EQUIPMENT SCHEDULE NO. 2
                            TO MASTER LEASE AGREEMENT
                                    NO. ARBIX
                 dated as of June 5, 2003 (the "Lease") between
      ATEL VENTURES, INC. as Lessor and ARBINET-THEXCHANGE, INC. as Lessee

Stipulated Loss Value: Pursuant to the provision of the second paragraph of
Section 8 of the above referenced Lease, in the event any item or items of
Equipment suffers an Event of Loss, as reasonably determined by Lessee, in lieu
of replacing such item or items of Equipment, Lessee may pay to Lessor or the
then Assignee of the Lease, if any, an amount equal to the Stipulated Loss Value
(determined in the manner hereinafter set forth) for each such item of Equipment
so destroyed or damaged to the extent not paid by insurance. Upon such payment
by Lessee, the above referenced Equipment Schedule shall terminate with respect
to the item or items of Equipment so destroyed or damaged.

The Stipulated Loss Value shall be an amount equal to the percentage indicated
below of the cost of the item of Equipment so destroyed or damaged for the
payment immediately preceding the Event of Loss:

                         Stipulated Loss
Payment                 Value-Percentage
Number                       Of Cost
---------------------   ----------------
Prior to Commencement        103.64
1                            101.40
2                             99.13
3                             96.83
4                             94.51
5                             92.15
6                             89.76
7                             87.34
8                             84.89
9                             82.41
10                            79.90
11                            77.36
12                            74.79
13                            72.19
14                            69.56
15                            66.89
16                            64.20
17                            61.47
18                            58.70
19                            55.91
20                            53.08
21                            50.21
22                            47.32
23                            44.40
24                            41.46
25                            38.49
26                            35.48
27                            32.44
28                            29.37
29                            26.27
30                            23.14
31                            19.98
32                            16.78
33                            13.54
34                            10.26
35                            10.12
36 and thereafter             10.00

ARBINET-THEXCHANGE, INC.

By:  /s/  Peter P. Sach
    --------------------------------
Name: Peter P. Sach
Title: CAO & Treasurer

Date: 7-9-03

<PAGE>

                                   RIDER NO. 2
                           TO EQUIPMENT SCHEDULE NO. 2

               SALE LEASEBACK ADDENDUM TO EQUIPMENT SCHEDULE NO. 2
                  TO MASTER EQUIPMENT LEASE AGREEMENT NO ARBIX
                            DATED AS OF June 5, 2003

This Sale and Leaseback Agreement is entered into as of 9th of July, 2003 by and
between ARBINET-THEXCHANGE, INC., a corporation duly organized and validly
existing under the laws of the state of Delaware (hereinafter referred to as the
"Seller"), and ATEL VENTURES, INC., a corporation duly organized and validly
existing under the laws of California (hereinafter referred to as the "Buyer")
and incorporates by reference the terms and conditions of the Lease, as defined
below.

     WHEREAS, Buyer is purchasing from Seller the equipment listed in Exhibit A
attached hereto and made a part hereof (hereinafter referred to as the
"Equipment"); and

     WHEREAS, Seller desires to use the Equipment under the terms and conditions
of the Master Lease Agreement No. ARBIX (the "Master Lease") dated as of June 5,
2003, as it relates to Equipment Schedule No. 2 (the "Equipment Schedule")
thereto (together the Master Lease and Equipment Schedule are referenced to
herein as the "Lease").

     NOW THEREFORE, it is agreed as follows:

     1.   On or before the date hereof, Seller has purchased and acquired the
          Equipment set forth on Exhibit A from the manufacturers or vendors
          (the "Vendors") described on said Exhibit. Seller hereby agrees to
          sell and convey to Buyer and Buyer agrees to purchase from seller the
          Equipment set forth on Exhibit A. Subject to the terms and conditions
          of the Lease, Buyer, as Lessor, agrees to lease and Seller, as Lessee,
          agrees to hire from Lessor the Equipment set forth on Exhibit A. The
          Acceptance Date under the Lease for such Equipment shall be July 9th,
          2003.

     2.   The aggregate Vendor's list and normal selling price for the Equipment
          set forth on Exhibit A is $1,548,718.00, on or before the date hereof.
          Seller has acquired this Equipment from the Vendor for such amount,
          net of any Volume Purchase Discounts, rental credits or sales taxes.
          Buyer's Purchase Price for this Equipment shall be an amount equal to
          $1,309,051.16.

     3.   On or after the date hereof, Seller shall deliver to Buyer copies of
          the Vendor invoice marked paid, Vendor Bill of Sale to Seller covering
          the Equipment, Bill of Sale and invoice from Seller to Buyer for the
          payment due hereunder and an Acceptance Certificate due under the
          Lease showing the Acceptance Date. Buyer will, within fifteen (15)
          business days of receipt of all of the documents delivered by Seller
          as described above, remit to Seller the Purchase Price for the
          Equipment purchase.

     4.   Seller hereby represents and warrants to Buyer that on the date hereof
          and the Acceptance Date, the Equipment is in good order and repair and
          that there are no claims, liens, or security interests on or relation
          to the Equipment which will survive upon Buyer's payment in full of
          the Purchase Price.

     5.   The warranties, representations and agreements herein contained shall
          survive the passing of title.

     6.   Seller shall pay any and all applicable Federal, State, County or
          local taxes and any and all present or future taxes or other
          government charges levied upon or created by this sale of the
          Equipment, including sales, use, gross receipts or occupation taxes
          due upon the purchase by Buyer. Seller shall have no liability for
          taxes which are based solely upon or measured by the net income of the
          Buyer.

     7.   To induce the Buyer to enter this Sale and Leaseback Agreement and
          with the knowledge that the Buyer is doing so in reliance upon these
          representations and warranties, Seller represents and warrants to the
          Buyer that: (i) it has the authority to enter into this Sale and
          Leaseback Agreement; (ii) the person who has executed this Sale and
          Leaseback Agreement and who shall execute the Bill of Sale, has the
          authority to bind the Seller; (iii) the lease, this sale and the
          execution of this Sale and Leaseback Agreement will not materially
          violate any indenture of other agreement to which the Seller is a
          party or any law, Certificate of Incorporation or By-Laws under which
          the Seller operates; (iv) this Sale and Leaseback Agreement and the
          Bill of Sale, when executed and delivered to the Buyer, will be a duly
          authorized, valid and binding agreement of the Seller enforceable
          against the Seller in accordance with the respective terms thereof;
          (v) that Seller has and is transferring to Buyer title to the
          Equipment free and clear of all liens and encumbrances of any kind or
          description and this transaction may not be set aside for any reason
          whatsoever; (vi) the Seller has complied with all applicable bulk sale
          transfer laws and fraudulent conveyance statutes and indemnifies Buyer
          for any loss Buyer may suffer as a result of a breach hereof.

     8.   Seller hereby assigns to Buyer, all of its right, title and interest
          in and to the agreements warranties applicable to the Equipment, and
          to the extent permitted by applicable law. Seller further assigns to
          Buyer any and all licenses to use the Equipment for its current
          function, and Buyer shall have the right, without additional expense,
          to continue using such license after expiration or earlier termination
          of the Lease.

     9.   This Sale and Leaseback Agreement and all documents referred to herein
          shall inure to the benefit of and shall be binding upon Seller and
          Buyer, their subsidiaries, successors and assigns. Neither party shall
          assign any interest in this Sale and Leaseback Agreement or in the
          documents described herein without the other's written consent, which
          consent shall not be unreasonably withheld except Seller agrees that
          Buyer may assign to an affiliate.

<PAGE>

     10.  The entire agreement between the parties with respect to the subject
          matter hereof is contained in the Master lease Agreement, Equipment
          Schedules and this Sale and Leaseback Agreement. There are no
          understandings, agreements, representations or warranties, expressed
          or implied, not specified herein, respecting this Sale and Leaseback
          Agreement or the Equipment purchased hereunder. Buyer shall not be
          liable for any indirect, special or consequential damages, in
          connection with or arising out of the furnishing, performance or use
          of any item of Equipment or services provided for in this Sale and
          Leaseback Agreement, nor shall Buyer be liable in whole or in part for
          any event beyond its control.

IN WITNESS WHEREOF, the parties hereto have executed this Sale and Leaseback
Agreement as of this 9th day of July, 2003.

    (Seller)                                (Buyer)

By: /s/ Peter P. Sach                   By: /s/ Vasco H. Morais
    ---------------------------------       ------------------------------------
Name: Peter P. Sach                     Name: Vasco H. Morais, Esq
Title: CAO & Treasurer                  Title: Senior Vice President

<PAGE>

                                  Exhibit A to
    Master Lease Agreement No. ARBIX dated as of June 5, 2003, by and between
     ATEL VENTURES, INC. ("Lessor") and ARBINET-THEXCHAGNE, INC. ("Lessee")

<TABLE>
<CAPTION>

                        Invoice    Invoice                                                    Serial       Total       Sales
     Vendor               No.        Date              Equipment Description            Qty   No(s).        Cost        Tax
----------------------------------------------------------------------------------------------------------------------------
<S>                       <C>     <C>         <C>                                        <C>  <C>      <C>             <C>
Santera Systems, Inc.     2525    10-Mar-03             Santera One Switch               1             $1,130,039.00   $0.00

Santera Systems, Inc.     2686    28-Apr-03   Box Circuit Packs - Packet Matrix One      4             $  418,679.00   $0.00

Santera Systems, Inc.     2686    28-Apr-03   TDM and Box Packfill - 3 Port DS3 Cards    6

Santera Systems, Inc.     2686    28-Apr-03   TDM and Box Packfill, Packet Matrix One    4

Santera Systems, Inc.     2686    28-Apr-03       TDM and Box Packfill, OC12C ATM
                                                           Superslot NIC                 2

Santera Systems, Inc.     2686    28-Apr-03      TDM and Box Packfill, Voice Server
                                                               Module                    2

                                                          GRAND TOTALS                                 $1,548,718.00   $0.00

<CAPTION>
                          Labor
                         and/or
                        Shipping                                                   Funded To   Equipment
                           and                                        Advanced     Lessee or    Schedule
     Vendor             Handling     Soft Cost       Final Cost         Cost         Vendor       No.
--------------------------------------------------------------------------------------------------------
<S>                       <C>      <C>             <C>             <C>               <C>           <C>
Santera Systems, Inc.     $0.00     ($424,883.77)  $  705,155.23   $  705,155.23     Lessee        2

Santera Systems, Inc.     $0.00    $        0.00   $  418,679.00   $  418,679.00     Lessee        2

Santera Systems, Inc.                                                                              2

Santera Systems, Inc.                                                                              2

Santera Systems, Inc.                                                                              2

Santera Systems, Inc.                                                                              2

                          $0.00     ($424,883.77)  $1,123,834.23   $1,123,834.23
</TABLE>

                            EQUIPMENT COST BREAKDOWN
     $1,123,834.23 (Advanced Cost) + $185,216.93 (Soft Cost) = $1,309,051.16
                                (Equipment Cost)

Equipment Location
75 Board Street, Floor 20, New York, NY 10004-2490

Lessor:                                      Lessee:
ATEL Ventures, Inc.                          Arbinet-thexchange, Inc.

By: /s/ Vasco H. Morais, Esq.                By: /s/ Peter P. Sach
    ------------------------------------        --------------------------------
Title: Senior Vice President                 Title: CAO & TREASURER

Date: 7/9/03                                 Date: 7-9-03

<PAGE>

                                   RIDER NO. 3
                           TO EQUIPMENT SCHEDULE NO. 2
                  TO MASTER EQUIPMENT LEASE AGREEMENT NO. ARBIX
                            DATED AS OF JUNE 5, 2003

                                  FULL WARRANTY
                                  BILL OF SALE

     KNOW ALL MEN BY THESE PRESENTS, that ARBINET-THEXCHANGE, INC. a Delaware
corporation located at 120 Albany Street, Tower II, 4th Floor, New Brunswick, NJ
08901 ("Seller"), for good and valuable consideration received from ATEL
VENTURES, INC. a California corporation ("Buyer"), the receipt and sufficiency
of which is hereby acknowledged, has bargained, sold, transferred, assigned, set
over, and conveyed, unto the Buyer, its successors and assigns forever, free and
clear of all liens, claims, and encumbrances of any nature whatsoever, all of
Seller's rights, title and interest in and to the personal property described on
the attached Exhibit "A" incorporated herein by reference (the "Equipment").

     TO HAVE AND TO HOLD the Equipment unto the Buyer, its successors, and
assigns, to its and their own use and behalf forever.

     Seller hereby affirms, represents, and warrants that it has not made any
prior sale, assignment, or transfer of the Equipment and that Seller has the
full right, title, and interest in and to the Equipment and will convey such
title to Buyer hereby free and clear of all, liens, encumbrances of any kind,
including, without limitation, any domestic or foreign tax claims against the
Equipment prior to, or resulting from, this conveyance.

     Seller shall indemnify, defend, and hold Buyer harmless from and against
any and all claims or liabilities resulting from any misrepresentation by, and
or breach of warranty, covenant, or agreement of Seller set forth herein or in
the Sale Leaseback Agreement dated as of July 9th, 2003 between Seller and
Buyer.

     Seller, for itself and its successors and assigns, further covenants and
agrees to do, execute, and deliver, or to cause to be done, executed, and
delivered, all such further acts, transfers, and assurances, reasonably
requested by Buyer for the better assuring, conveying, and confirming unto Buyer
and its successors and assigns, the Equipment hereby bargained, sold assigned,
transferred, set over, and conveyed, as Buyer and its successors and assigns
shall request.

     This Bill of Sale and the representations, warranties, and covenants herein
contained shall inure to the benefit of Buyer and its successors and assigns,
shall be binding upon Seller and its successors, assigns.

IN WITNESS WHEREOF, Seller has caused this Bill of Sale to be executed as of
this July 9th, 2003.

Seller:

ARBINET-THEXCHANGE, INC.

By: /s/ Peter P. Sach
    ------------------------------------
Name Peter P. Sach
Title: CAO & Treasurer

<PAGE>

                                  Exhibit A to
    Master Lease Agreement No. ARBIX dated as of June 5, 2003, by and between
     ATEL VENTURES, INC. ("Lessor") and ARBINET-THEXCHAGNE, INC. ("Lessee")

<TABLE>
<CAPTION>

                        Invoice    Invoice                                                    Serial       Total       Sales
     Vendor               No.        Date              Equipment Description            Qty   No(s).        Cost        Tax
----------------------------------------------------------------------------------------------------------------------------
<S>                       <C>     <C>         <C>                                        <C>  <C>      <C>             <C>
Santera Systems, Inc.     2525    10-Mar-03              Santera One Switch              1             $1,130,039.00   $0.00

Santera Systems, Inc.     2686    28-Apr-03    Box Circuit Packs - Packet Matrix One     4             $  418,679.00   $0.00

Santera Systems, Inc.     2686    28-Apr-03   TDM and Box Packfill - 3 Port DS3 Cards    6

Santera Systems, Inc.     2686    28-Apr-03   TDM and Box Packfill, Packet Matrix One    4

Santera Systems, Inc.     2686    28-Apr-03       TDM and Box Packfill, OC12C ATM
                                                           Superslot NIC                 2

Santera Systems, Inc.     2686    28-Apr-03      TDM and Box Packfill, Voice Server
                                                               Module                    2

                                                            GRAND TOTALS                               $1,548,718.00   $0.00

<CAPTION>
                          Labor
                         and/or
                        Shipping                                                   Funded To   Equipment
                           and                                        Advanced     Lessee or    Schedule
     Vendor             Handling     Soft Cost       Final Cost         Cost         Vendor       No.
--------------------------------------------------------------------------------------------------------
<S>                       <C>      <C>             <C>             <C>               <C>           <C>
Santera Systems, Inc.     $0.00     ($424,883.77)  $  705,155.23   $  705,155.23     Lessee        2

Santera Systems, Inc.     $0.00    $        0.00   $  418,679.00   $  418,679.00     Lessee        2

Santera Systems, Inc.                                                                              2

Santera Systems, Inc.                                                                              2

Santera Systems, Inc.                                                                              2

Santera Systems, Inc.                                                                              2

                          $0.00     ($424,883.77)  $1,123,834.23   $1,123,834.23
</TABLE>

                            EQUIPMENT COST BREAKDOWN
     $1,123,834.23 (Advanced Cost) + $185,216.93 (Soft Cost) = $1,309,051.16
                                (Equipment Cost)

Equipment Location
75 Board Street, Floor 20, New York, NY 10004-2490

Lessor:                                      Lessee:
ATEL Ventures, Inc.                          Arbinet-thexchange, Inc.

By: /s/ Vasco H. Morais, Esq.                By: /s/ Peter P. Sach
    -----------------------------------          -------------------------------
Title: Senior Vice President                 Title: CAO & TREASURER

Date: 7/9/03                                 Date: 7-9-03

<PAGE>

                 MASTER LEASE AGREEMENT NO. ARBIX (the "Lease")
                     dated as of June 5, 2003 by and between
 ATEL VENTURES, INC. (the "Lessor") and ARBINET THEXCHANGE, INC. (the "Lessee")

                     CERTIFICATE OF DELIVERY AND ACCEPTANCE
                         AND REQUEST FOR ADVANCE NO. 2-1

     WHEREAS, ARBINET-THEXCHANGE, INC. ("Lessee") has executed or will execute
an Equipment Schedule No. 2 to a certain Master Lease Agreement dated as of June
5, 2003, (the Equipment Schedule, as it incorporates or will incorporate the
term of the Lease Agreement, hereinafter referred to as the "Lease") between
itself and ATEL VENTURES, INC. ("Lessor"), and

     WHEREAS, said Equipment Schedule lists or will list certain Equipment
leased thereunder more fully described on Exhibit "A" hereto ("Equipment");

     NOW, THEREFORE, (i) Lessee requests that Lessor immediately make payments
and/or advances to the Lessee in the amounts indicated on the attached invoices)
totaling $1,309,051.16 ("Equipment Cost", please see attached Exhibit "A") (The
date of any such payment on advance shall be known as "Advance Date"); and (ii)
Lessee acknowledges (where applicable) delivery, receipt and installation of all
Equipment listed on said Equipment Exhibit A at the location indicated on the
attached Exhibit A, which Equipment, delivery, and installation has been
inspected and found satisfactory. On the Acceptance Date indicated below, Lessee
affirms that the Equipment has been "placed in service" as such term is used in
the Internal Revenue Code.

     Lessee agrees that pursuant to the terms of the Lease the Basic Rent for
the Equipment accepted hereunder is $41,952.47 per month, and that such Basic
Rent is due monthly in advance without right of deduction, offset, abatement,
defense, counterclaim or demand whatsoever, from the earlier of the Advance Date
or the Acceptance Date and on the first day of each month thereafter until the
Commencement Date of the applicable Equipment Schedule. If for any reason the
Lessee and the Lessor fail to execute the Equipment Schedule which covers the
Equipment accepted hereunder, then Lessee shall, upon demand by Lessor,
reimburse Lessor in full for the Equipment Cost by paying to Lessor the
Stipulated Loss Value of the Equipment equal to not less than 103.64% of the
Equipment Cost plus any unpaid Rent or, at Lessor's option, Lessor may declare
an Event of Default and pursue its remedies under the Lease.

     Lessee confirms that the Equipment is insured with the Lessor designated as
Loss Payee/Additional Insured.

     IN ADDITION, LESSEE HAS BEEN ADVISED BY LESSOR THAT THE EQUIPMENT COVERED
BY SUCH LEASE IS SUBJECT TO THE EXPRESS DISCLAIMER BY LESSOR OF ALL EXPRESS
WARRANTIES AND ALL IMPLIED WARRANTIES INCLUDING, WITHOUT LIMITATION, THE IMPLIED
WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

     Lessee confirms having made for its own records a copy of this Acceptance
Certificate contemporaneously with its execution. This disclaimer of express and
implied warranties has been discussed between the undersigned and Lessor and has
been specifically bargained for by the undersigned and Lessor with respect to
the lease of the Equipment particularly described in the Lease.

                                        By:  /s/  Peter P. Sach
                                            ------------------------------------
                                        Name: Peter P. Sach
                                        Title: CAO & Treasurer

                                        Acceptance: 7/9/03

<PAGE>

                                  Exhibit A to
           Master Lease Agreement No. ARBIX dated as of June 5, 2003,
                by and between ATEL VENTURES, INC. ("Lessor") and
                       ARBINET-THEXCHAGNE, INC. ("Lessee")

<TABLE>
<CAPTION>

                        Invoice    Invoice                                                    Serial       Total
       Vendor             No.        Date              Equipment Description            Qty   No(s).        Cost
--------------------------------------------------------------------------------------------------------------------
<S>                       <C>     <C>         <C>                                        <C>  <C>      <C>
Santera Systems, Inc.     2525    10-Mar-03             Santera One Switch               1             $1,130,039.00

Santera Systems, Inc.     2686    28-Apr-03    Box Circuit Packs - Packet Matrix One     4             $  418,679.00

Santera Systems, Inc.     2686    28-Apr-03   TDM and Box Packfill - 3 Port DS3 Cards    6

Santera Systems, Inc.     2686    28-Apr-03   TDM and Box Packfill, Packet Matrix One    4
                                                  TDM and Box Packfill, OC12C ATM

Santera Systems, Inc.     2686    28-Apr-03               Superslot NIC                  2
                                                TDM and Box Packfill, Voice Server

Santera Systems, Inc.     2686    28-Apr-03                   Module                     2
                                                            GRAND TOTALS                               $1,548,718.00

<CAPTION>
                                  Labor
                                 and/or
                                Shipping                                                   Funded To   Equipment
                        Sales      and                                        Advanced     Lessee or    Schedule
       Vendor            Tax    Handling     Soft Cost       Final Cost         Cost         Vendor        No.
----------------------------------------------------------------------------------------------------------------
<S>                     <C>       <C>      <C>             <C>             <C>               <C>           <C>
Santera Systems, Inc.   $0.00     $0.00     ($424,883.77)  $  705,155.23   $  705,155.23     Lessee        2

Santera Systems, Inc.   $0.00     $0.00    $        0.00   $  418,679.00   $  418,679.00     Lessee        2

Santera Systems, Inc.                                                                                      2

Santera Systems, Inc.                                                                                      2

Santera Systems, Inc.                                                                                      2

Santera Systems, Inc.                                                                                      2
                        $0.00     $0.00     ($424,883.77)  $1,123,834.23   $1,123,834.23
</TABLE>

                            EQUIPMENT COST BREAKDOWN
     $1,123,834.23 (Advanced Cost) + $185,216.93 (Soft Cost) = $1,309,051.16
                                (Equipment Cost)

Equipment Location
75 Broad Street, Floor 20, New York, NY 10004-2490

Lessor:                                 Lessee:
ATEL Ventures, Inc.                     Arbinet-thexchange, Inc.

By: /s/ Vasco H. Morais, Esq.           By: /s/ Peter P. Sach
    ---------------------------------       ------------------------------------
Title: Senior Vice President            Title: CAO & TREASURER

Date: 7/9/03                            Date: 7-9-03

<PAGE>

                     CLOSING DOCUMENTS - ATEL VENTURES, INC.

<TABLE>
<CAPTION>
                                Document                                      Date
                                --------                                   ---------
<S>                                                                        <C>
 1. Purchase Requisition                                                    5-Jun-03
 2. Opinion Letter                                                          5-Jun-03
 3. Master Lease Agreement No. ARBIX                                        5-Jun-03
       a. Exhibit A - Equipment Lease                                       5-Jun-03
       b. Equipment Schedule No. 1                                          5-Jun-03
             1. Rider No. 1                                                 5-Jun-03
             2. Rider No. 2                                                 5-Jun-03
             3. Rider No. 3                                                 5-Jun-03
       c. Certificate of Delivery and Acceptance                            5-Jun-03
 4. Evidence of Property Insurance                                          5-Jun-03
 5. Certificate of Liability Insurance                                      5-Jun-03
 6. Certified Copy of Corporate Resolution                                 27-Feb-03
 7. Warrant to Purchase Preferred Stock
 8. Fourth Amended and Restated Investors' Rights Agreement                30-May-03
       a. Joinder Agreement
 9. Sales and Use Tax Certificate of Exemption, Commonwealth of Virginia    6-Jun-03
10. Santera License Transfer Agreement                                     16-May-03
11. Amendment to No. 1 to Indirect Channel Customer Service                 4-Jun-03
    Agreement - Hitachi Data Systems
</TABLE>

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