Document:

Exhibit 4.21  

June 22nd,
2000 

Mr. Pierre
St-Arnaud

885 Des Roselins Street

Longueuil, Quebec

J4G 2P4 

Dear
Mr. St-Arnaud: 

Further
to our discussions, we are pleased to offer you a position with SR Telecom as President and Chief Operating Officer. In this capacity, you will be reporting to Mr. Ron Couchman, Chief
Executive Officer. 

For
this position, we are offering you an annual base salary of $265,000 paid on a biweekly basis, at a rate of $10,192.30. Performance and compensation reviews will take place at the beginning of
each calendar year. 

SR
Telecom Inc. has in place an informal Bonus Plan for Management. For the past five- (5) years, SRT has awarded a bonus to senior executives at the sole discretion of the
Board of Directors. This bonus has been based on the attainment of planned profits and has been as high as 50% of base salary. SRT will implement in 2000 a Management Bonus Plan, which in the case of
the position of President & COO, the bonus could reach up to 50% of Base Salary. 

We
offer a Stock Option Plan, which has been established by the Board of Directors to key employees for which you qualify. Subject to approval by the Board of Directors, I would expect the initial
stock option to be 100,000 SRT common shares. You may anticipate, with acceptable performance, to receive additional annual grants. All subsequent grants are also subject to board approval. 

In
the event of shareholder change of control (to outsiders) or termination for reasons other than just cause within 24 months of commencement of employment, you will continue to receive all
compensation, except bonus, for the balance
of the 24-month period and all Stock Options will fully vest at the time of such termination. In addition all Stock Options will vest 100% to you in the case of change of ownership. These
conditions will automatically renew for the same period unless a written notice not to renew is sent not later than one year prior to the end of the 2- year period. In the event that you
decide of your own volition to leave, the severance allowance would not be applicable. 

SRT
maintains a compulsory Group Insurance Benefits program for all employees effective your start date. This is a contributory program and is paid for by contributions from both the Company and you.
The program includes the following: 

	•
	Life
Insurance program equivalent to two times your annual base salary rounded to the next highest $1,000 to a maximum of $1,000,000 (including optional life insurance);

	•
	Optional
Life Insurance program for you and your eligible dependants;

	•
	Short
Term and Long Term Disability Income Benefit Programs;

	•
	Health
Insurance program for you and your eligible dependents including hospitalization, medical expenses, dental care and vision care programs;

	•
	Travel
Assistance-Plus for you and your dependents while on business trip and on vacation. 

The
Company, through a contribution made each year out of profit funds, maintains a Deferred Profit Sharing Plan for the benefit of all our employees. In recognition of your previous years of
experience, you will become a member of the Plan effective your start date, and subject to the Plan rules at the time of your eligibility. 

We
also offer a Stock Purchase Plan for the benefit of employees and you will become eligible to this program upon your start date. You can contribute up to 5% of your annual base salary to this plan.
The Company will match your contribution with one-third of the value on account (payroll deductions) prior to the purchase of the shares. 

All
expenses incurred on company business, including professional memberships and business mileage, will be reimbursed to you as approved by the CEO. 

At
your request, arrangements can be made with a leasing company for a vehicle of your choice. The cost of this vehicle will be reduced from your biweekly salary and is subject to the normal taxation
rules. In addition, you will be reimbursed for normal operating expenses of the vehicle. 

You
will also be eligible for the services a Tax Consultant to a maximum of $2,500 per annum and will be entitled to an Executive Medical offered annually to Senior Management staff. 

For
vacations, we are granting you 20 years of vacation seniority, allowing you to have 5 weeks vacation starting July 1st, 2001. Vacation will be granted on a
pro rata basis based upon the time worked between your starting date and June 30, 2001. Vacation days granted on July 1st must be taken before December 31 of
the following year. In addition to the annual vacation days, we observe 8 statutory holidays during the year, plus 3 free days normally taken in conjunction with Christmas and New Year's. 

This
offer is conditional on you successfully completing a medical scheduled by SRT prior to your start date. 

We
sincerely hope that you will accept this offer and join SR Telecom. We recognize your talents, and we believe you can be a major factor in helping us to continue our growth. We think we are doing
something worthwhile and exciting. We really need people who can contribute and find the same satisfaction in our achievement. 

Our
employees are required to sign a Confidentiality Agreement, given the nature of our business. Please indicate your acceptance by completing and duly signing below this letter of offer. 

Sincerely,

/s/
Ron Couchman 

W.
Ronald Couchman

President and Chief Executive Officer 

WRC/DH

	Offer accepted:	/s/ P.St-Arnaud
	 	Date:	June 22, 2000

	
 	

 	
 	

 	

 
	Expected Start Date:	August 15, 2000QuickLinks
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   Exhibit 10.1  

CONFIDENTIAL  

Portions
hereof have been omitted and filed separately with the Secturities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 406 of the
Securities Act of 1933, as amended. 

        THIS MASTER WHOLESALE PRICING AND SERVICES COORDINATING AGREEMENT IS MADE AS OF January 1, 2001 

	BETWEEN:	 	TELEGLOBE INC. a Canadian corporation having an office at 1000 rue de la Gauchetiere, Montreal, Canada ("Teleglobe");
	

 	
 	

 	
 	

OF THE FIRST PART
	

AND:	
 	

BELL CANADA, a Canadian corporation having an office at 483 Bay Street, Floor 6N, Toronto, Canada ("Bell Canada");
	

 	
 	

 	
 	

OF THE SECOND PART
	

AND:	
 	

BCE NEXXIA INC., a Canadian corporation having an office at 483 Bay Street, Floor 6N, Toronto, Canada ("Nexxia")
	

 	
 	

 	
 	

OF THE THIRD PART

RECITALS:  

WHEREAS the Parties hereto have agreed to acquire from each other telecommunications services with the intent to leverage their respective abilities and
strengths in order to jointly, effectively and efficiently address the telecommunications requirements of their respective customers; 

WHEREAS the Parties have developed, and supply certain telecommunications services as more particularly defined in the Specific Service Agreements, and
have agreed to make such telecommunications services available to each other on the terms and conditions set forth herein; 

WHEREAS Teleglobe agrees to purchase from Bell Canada or Nexxia, as the case may be, on an exclusive basis, the telecommunications services of Bell
Canada and Nexxia for its requirements in the Territory, subject to the terms and conditions set forth herein; 

WHEREAS each of Bell Canada and Nexxia wish to use certain telecommunications services of Teleglobe, on an exclusive basis, for their respective
requirements outside of the Territory, subject to the terms and conditions set forth herein; 

1

 

NOW THEREFORE THIS AGREEMENT WITNESSETH THAT in consideration of the mutual covenants herein contained and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows: 

1.     DEFINITIONS AND INTERPRETATION  

	1.1.
	In
this Agreement, unless there is something in the subject matter or context inconsistent therewith, the following terms shall have the following meanings:

	(a)
	"Act of Insolvency" with respect to a Person, means that such Person:

	(i)
	admits
in writing its inability to pay its debts generally as they become due, or not pay its debts generally as they become due; or

	(ii)
	files
an assignment or a petition in bankruptcy, as the case may be, or a petition to take advantage of any insolvency statute of any relevant jurisdiction; or

	(iii)
	makes
an assignment for the benefit of its creditors; or

	(iv)
	consents
to the appointment of a receiver, administrator, custodian or liquidator of itself, or of the whole, or any substantial part of its property; or

	(v)
	enters
into an arrangement or composition with, or for the benefit of creditors, generally occurring in circumstances in which it is unable to meet its obligations as
they become due; or

	(vi)
	files
a petition or answer seeking reorganization, administration, compromise, adjustment or composition under applicable bankruptcy laws, insolvency laws or any other
similar law or stature; or

	(vii)
	has
been adjudged by a court having jurisdiction in the premises as bankrupt or insolvent, or a decree or order of a court having jurisdiction in the premises shall
have been entered for the appointment of a receiver or liquidator or trustee or assignee in bankruptcy of it or for the winding up or liquidation of its affairs and such decree or order shall remain
in force undischarged or unstayed for a period of sixty (60) days;

	(b)
	"Affiliate" means, with respect to any Person, any other Person which controls, is controlled by, or is under common control with that
Person. For the purposes of this definition, a Person shall control the other if the first Person: (i) owns beneficially, or of record, more than 50% of the voting securities of the other
Person; and (ii) has the ability to elect a majority of the board of directors or other similar management body thereof; for greater certainty BCE Emergis Inc. shall not be considered as
an "Affiliate" under this Agreement.

	(c)
	"Agreement" means this Agreement including all Schedules attached hereto, unless the context otherwise requires;

	(d)
	"Bell Services" means, collectively, the wholesale services listed in Schedule 2, provided by Bell Canada or Nexxia, in the
Territory, to Teleglobe pursuant to the Specific Service Agreements and such other services as introduced by Bell Canada or Nexxia from time to time as contemplated by this Agreement and added, by
amendment executed in writing by the Parties, to the list of Bell Services in Schedule 2, and a reference to a "Bell Service" means any one of
them as the context may require;

	(e)
	"Business Day" means any day other than a Saturday, Sunday or statutory holiday observed in the city of Toronto (Ontario) or Reston
(Virginia); 

2

 

	(f)
	"Change of Control" means an event where a Person, not a Party or any of its Affiliates, acquires 50% or more of the issued and
outstanding Voting Shares of the share capital of a Party;

	(g)
	"Commencement Date" means January 1, 2001;

	(h)
	"Competing Services" means any telecommunications products or services, provided by a service provider, that is the same or
substantially similar to either a Teleglobe Exclusive Service or Bell Service, or is otherwise competitive with either a Bell Service or Teleglobe Exclusive Service or a Service to be provided by
Teleglobe further to the ROFR process set out in Article 5 hereof;

	(i)
	"Commodity Taxes" means all commodity taxes, including but not limited to, sales, retail, use, goods and services, harmonized, value
added, excise, and similar taxes imposed, levied or assessed by any federal, provincial, state or local government authority, other than taxes in the nature of a tax on income or capital;

	(j)
	"Confidential Information" of a Party includes all information relating to Customers, Customer account information, Customer lists;
information regarding such Party's administrative, financial or marketing activities; any research, development or business activities, the existence and terms of this Agreement, information disclosed
at any meetings and demonstrations between the Parties at any time before or after the Commencement Date, products, schedules, procedures, documentation, policies, business methods and practices;
pricing, market analysis, equipment, statistics, technology, sales, projections and corporate/business or financial information, technical information, actual and potential accounts, ideas, concepts,
techniques, processes, devices, compilations of data or information, information relating to actual or prospective products, activities, commercial relationships, know-how or research and
development; manufacturing, purchasing, data processing, engineering, marketing, drawings, models, sketches, all written material including programs and subroutines (whether in source or object code
form) and updates and modifications thereto, card decks, computer software and software related documentation, tapes, diskettes, listings, and other programming and system documentation, manuals and
copies thereof containing such information. Confidential Information also includes any and all trade secrets, confidential, private, or secret information of such Party marked confidential, restricted
or proprietary or which is otherwise disclosed with notice of confidentiality and includes without limitation information or data of any third party to whom such party owes a duty of confidentiality;

	(k)
	"Cross-Border Facilities" means any Network Facilities being part of or an extension to the telecommunications network of any one
Party, where such network requires the crossing of the US-Canada border;

	(l)
	"Customers" means both Wholesale Customers and Retail Customers;

	(m)
	"Informant" has the meaning ascribed thereto in Article 10.1;

	(n)
	"Intellectual Property Right" shall mean any right that is or may be granted or recognised under any Canadian or foreign legislation
regarding patents, copyrights, neighbouring rights, moral rights, trade-marks, trade names, service marks, industrial designs, mask work, integrated circuit topography, privacy, publicity, celebrity
and personality rights or under any other statutory provision or common or civil law principle regarding intellectual and industrial property, whether registered or unregistered, and includes rights
in any application for any of the foregoing;

	(o)
	"Network Facilities" shall include, without limitation and as a way of example fibre and broadband circuits (e.g. DS1 to OC192),
including managed wave length services, all the 

3

 

foregoing
for "backbone" requirements and not for either Retail or Wholesale Customer specific requirements; 

	(p)
	"Party" means Bell Canada and Nexxia (individually or collectively as the context requires) or Teleglobe, as the case may be, and
"Parties" means collectively each Party to this Agreement;

	(q)
	"Person" means and includes an individual, firm, partnership, syndicate, joint venture, trust, association, body corporate, trustee,
executor, administrator or legal representations and every other legal or business entity whatsoever;

	(r)
	"Prime", "Primeship", "to prime" a
Customer means to have account management control for that Customer;

	(s)
	"Retail Customer" means a Customer of either Bell Canada, Nexxia or Teleglobe, or any of such Party's Affiliates, purchasing Services
for its use and not for distribution or resale;

	(t)
	"Right of First Refusal" or "ROFR" has the meaning set forth in Article 5
hereof;

	(u)
	"Senior Executive Level" means a Person with a minimum Vice-President level of authority at Teleglobe or Bell Canada or
Nexxia, as the case may be;

	(v)
	"Services", means the Bell Services or Teleglobe Services as the case may be, delivered pursuant to the Specific Services Agreements;

	(w)
	"Service Provider" means either Bell Canada or Nexxia, in the case of the provision of the Bell Services to Teleglobe pursuant to a
Specific Services Agreement, or Teleglobe, in the case of the provision of the Teleglobe Services to Bell Canada or Nexxia pursuant to a Specific Services Agreement;

	(x)
	"Service Purchaser" means either Bell Canada or Nexxia, where Bell Canada or Nexxia are the recipient of the Teleglobe Services
pursuant to a Specific Services Agreement, or Teleglobe, where Teleglobe is the recipient of the Bell Services pursuant to a Specific Services Agreement;

	(y)
	"Specific Service Agreements" means any and all agreements entered into, inter alia, by
and between the Parties prior to or after the Commencement Date, and which set forth the specific terms and conditions associated with the provision of the Bell Services or Teleglobe Services, as
applicable;

	(z)
	"Teleglobe" means Teleglobe Inc. and all its Affiliates;

	(aa)
	"Teleglobe Exclusive Services" means IP Transit, International Private Line and international voice services (i.e. IDDD, ISDN, OH,
Canada Direct and ITFS/UIFN) or any other telecommunications services for which a ROFR has been accepted pursuant to Section 5 hereof;

	(bb)
	"Teleglobe Services" means, collectively, the wholesale services listed in Schedule 1 provided by Teleglobe to Bell Canada or
Nexxia, as the case may be, pursuant to the Specific Services Agreements and such other services as introduced by Teleglobe from time to time as contemplated by this Agreement and added, by amendment
executed in writing by the Parties, to the list in Schedule 1, and a reference to a "Teleglobe Service" means any one of them as the context may
require;

	(cc)
	"Territory" means Canada;

	(dd)
	"Voting Shares" means shares of any class of shares in the share capital of a body corporate to which are attached voting rights
exercisable in all circumstances; 

4

 

	(ee)
	"Wholesale Customer" means a business whose primary purpose is the sale of telecommunications services to Persons who purchase
services for distribution to end users with or without adding value and includes, without limitation, businesses described in the industry as IXCs, resellers, rebillers, CLECs, DLECs, ISPs,
aggregators, share groups, and wireless service providers.

	1.2.
	Entire Agreement.    Subject to each Specific Service Agreement, this Agreement and all Schedules attached hereto constitute
the entire agreement between the Parties pertaining to the provisioning, marketing and distribution of the Services and supersede all prior and contemporaneous agreements, understandings, negotiations
and discussions, whether oral or written, pertaining to the subject matter hereof. Subject to the qualifications contained in the immediately preceding sentence, there are no conditions, covenants,
agreements, representations, warranties or other provisions, express or implied, collateral, statutory or otherwise, pertaining to the subject matter hereof except as herein provided.

	1.3.
	Extended Meanings.    Wherever in this Agreement the context so requires, the singular number shall include the plural
number and vice versa and any gender herein used shall be deemed to include the feminine, masculine and neuter genders. The terms "provision" and "provisions" refer to terms, conditions, provisions,
covenants, obligations, undertakings, representations and warranties in, or Schedules to, this Agreement. The term "includes" or "including" shall be construed as meaning "includes without limitation"
and "including without limitation", as the case may be.

	1.4.
	Sections and Headings.    The division of this Agreement into Articles and the insertion of headings are for the convenience
of reference only and shall not affect the interpretation of this Agreement. The terms "this Agreement", "hereof', "herein" and "hereunder" and similar expressions refer to this Agreement (including
the Schedules hereto) and not to any particular Article or other portion hereof and include any agreement or instrument supplementary or ancillary hereto. Unless otherwise indicated, any reference in
this Agreement to an Article, Section or Schedule refers to the unspecified Section, Section of or Schedule to this Agreement.

	1.5.
	Exclusion of International Convention.    The Parties hereby agree that the application to this Agreement of the United
Nations Convention on Contract for the International Sale of Goods, as well as the application of any domestic legislation which has or purports to have adopted the Convention into law for the
jurisdiction concerned are hereby excluded. The Parties make such exclusions pursuant to the appropriate provisions in the legislation which adopted the Convention into law in the jurisdiction
concerned.

	1.6.
	Financial Responsibility.    Financial responsibility relating to a particular function contemplated by this Agreement shall
rest with the Party who has the responsibility of performing that function pursuant hereto unless otherwise indicated herein.

	1.7.
	Languages.    The Parties have requested that this Agreement and all documents, instruments and written communications
relating thereto be expressed in the English language. Les Parties ont exigé que la présente convention, les conventions auxiliares ainsi qua tous documents, instruments,
et communications écrites s'y rattachant soient rédigés dans la langue anglaise.

	1.8.
	Severability.    If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid,
illegal or unenforceable in any respect, such determination shall not impair or affect the validity, legality or enforceability of the remaining provisions of this Agreement, and each provision is
hereby declared to be separate, severable and distinct.

	1.9.
	Currency.    All references in this Agreement or any Schedule hereto, to sums of money shall be, unless the contrary is
expressly indicated, to lawful money of the United States. 

5

 

	1.10.
	Business Day.    If any act is required hereunder to be done, any notices required hereunder to be given, or any period of
time is to expire hereunder on any day that is not a Business Day, unless otherwise specifically provided for herein, such act shall be required to be done or notices shall be required to be given or
time shall expire on the next succeeding Business Day and, in the case of any payment of any monetary amount, the extension of time shall be included for the purpose of computation of interest
thereon.

	1.11.
	Controlling Law.    Choice of Forum; Service of Process. This Agreement shall be governed by and construed and interpreted
exclusively in accordance with the laws of the Province of Ontario, applicable therein other than the laws thereof that would require reference to the laws of any other jurisdiction. For purposes for
which resort to a court may be had, the Parties irrevocably consent to the exclusive jurisdiction and venue of the courts located in the Province of Ontario.

	1.12.
	Schedules.    The following Schedules form a part of this Agreement:

	

	Schedule 1        Teleglobe
Services

	

	Schedule 2        Bell
Services

	

	Schedule 3        Most
Favoured Service Purchaser (MFSP) Assumptions 

2.     TERM AND TERMINATION  

	2.1.
	This
Agreement shall commence on the Commencement Date and shall continue for a period of five (5) years (the "Initial Term"). Thereafter, this Agreement shall automatically
renew for successive one (1) year terms (each one of them a "Renewal Term") unless either Party provides a six (6) months prior written notice to the other Party of its intent to
terminate this Agreement either prior to the end of the Initial Term or any Renewal Term.

	2.2.
	Notwithstanding
Article 2.1 above, Bell Canada and/or Nexxia may terminate (at their respective option) this Agreement at any time:

	(a)
	where
Teleglobe is in default of a material obligation under this Agreement, and such default continues for a period of thirty (30) days following receipt by Teleglobe of a
written notice of non-compliance ("Notice of Non-Compliance"), or such extended period of time after receipt of the Notice of Non-Compliance that is necessary to
cure the default if Teleglobe reasonably demonstrates that such default is not capable of being cured within thirty (30) days, provided that the curing of the default is promptly commenced
after receipt of the Notice of Non-Compliance and is thereafter continuously prosecuted with due diligence to completion within a reasonable period of time, and provided that Teleglobe
keeps Bell Canada or Nexxia, as the case may be, fully advised on a current basis at all times of its progress in curing the default; or

	(b)
	in
the event Teleglobe commits an Act of Insolvency; or

	(c)
	in
the event of a Change of Control of Teleglobe on twelve (12) months written notice.

	2.3.
	As
between Teleglobe and either Bell Canada or Nexxia, as the case may be, notwithstanding Article 2.1 above, Teleglobe may terminate (at its option) this Agreement:

	(a)
	with
respect to Bell Canada, where Bell Canada is in default of a material obligation under this Agreement, or with respect to Nexxia, where Nexxia is in default of a material
obligation under this Agreement (the "Defaulting Party"), and such default continues for a period of thirty (30) days following receipt by the Party of a written notice of
non-compliance ("Notice of Non-Compliance"), or such extended period of time after receipt of the Notice of Non-Compliance that is necessary to cure the default if
the 

6

 

Defaulting
Party reasonably demonstrates that such default is not capable of being cured within thirty (30) days, provided that the curing of the default is promptly commenced after receipt of
the Notice of Non-Compliance and is thereafter continuously prosecuted with due diligence to completion within a reasonable period of time, and provided that the Defaulting Party keeps the
other Party fully advised on a current basis at all times of its progress in curing the default: or 

	(b)
	in
the event Bell Canada or Nexxia, as the case may be, commits an Act of Insolvency, provided that Teleglobe shall only be entitled to terminate this Agreement as against the Party
which has committed the Act of Insolvency; or

	(c)
	in
the event of a Change of Control of Bell Canada or Nexxia, as the case may be, upon twelve (12) months notice, provided that Teleglobe shall only be entitled to terminate
this Agreement as against the Party which has been the subject to a Change of Control. 

7

  

	2.4.
	Except
as otherwise expressly contemplated herein, each Party's rights and obligations shall cease immediately on termination of this Agreement, but termination shall not affect:

	(a)
	a
Party's rights and obligations accrued as at termination; and

	(b)
	any
provision of this Agreement expressed to survive its termination. 

3.     OBLIGATIONS OF THE PARTIES  

	3.1.
	Subject
to the terms and conditions of this Agreement:

	(a)
	each
of Bell Canada and Nexxia, as the case may be, shall provide the Bell Services to Teleglobe; and

	(b)
	Teleglobe
shall provide the Teleglobe Services to each of Bell Canada and Nexxia, as the case may be;

	

	all
upon and subject to the conditions specified in this Agreement and any Specific Service Agreement including, without limitation, any service level
agreement set out in such Specific Service Agreement.

	3.2.
	For
greater certainty, unless expressly contemplated herein, this Agreement does not supersede, terminate and otherwise render null and void any and all Specific Service Agreements,
or any part thereof, except with respect to the matters herein expressly set forth, and nothing herein contained shall be construed as intended to relieve or release either Party under any Specific
Service Agreement.

	3.3.
	Effective
from July 1, 2001, Teleglobe shall not directly or indirectly promote, market and sell any and all telecommunications services to Customers in the Territory, either
on a retail or wholesale basis, other than to Bell Canada or Nexxia, and shall thereafter fulfill, satisfy and discharge all of its requirements for the delivery of telecommunications services in the
Territory exclusively with Bell Canada or Nexxia through the delivery by Bell Canada or Nexxia, as the case may be, of the Bell Services, unless Bell Canada or Nexxia decline in writing to provide the
said Bell Services, and further provided that Teleglobe shall be entitled, in the Territory, to provide, but not promote, market and sell, Internet Data Centers Services. For greater certainly,
Teleglobe agrees that it shall not create or participate directly or indirectly, or through the use of an Affiliate, in any initiative aimed at providing Competing Services at either a wholesale or
retail level to any Person in the Territory. In addition, Teleglobe agrees that it shall not promote, market and sell United States originating traffic termination services terminating in Canada (i.e.
IDDD Northbound traffic) without the prior consent of Bell Canada or Nexxia.

	3.4.
	Subject
to Articles 3.5 and 3.6 hereof, effective July 1, 2001, Bell Canada and Nexxia shall fulfill, satisfy and discharge all of their requirements for the delivery,
outside of the Territory of Teleglobe Exclusive Services through Teleglobe. Notwithstanding the foregoing and for greater certainty Bell Canada, Nexxia, or any of their respective Affiliates, shall
not be obligated to obtain telecommunications services for their respective Wholesale and Retail Customers having requirements outside of the Territory, other than for the Teleglobe Exclusive
Services, from Teleglobe provided that they shall provide Teleglobe with a ROFR pursuant to Article 5 hereof in respect of such other telecommunications services. Except as otherwise set forth
in this Agreement, Bell Canada and Nexxia agree that they shall not create or participate directly or indirectly, or through the use of an Affiliate, in any initiative aimed at provisioning Competing
Services to any Person outside of the Territory. For greater certainty, and unless the Parties agree otherwise, nothing herein shall be construed as restricting or 

8

 

limiting
Bell Canada and Nexxia, or their respective Affiliates, to promote, market and sell directly or indirectly telecommunications services inside or outside the Territory. 

	3.5.
	Notwithstanding
Article 3.4 hereof, Bell Canada or Nexxia shall not be required to fulfill, satisfy and discharge its requirements for telecommunications facilities from
Teleglobe, in order to provide such telecommunications facilities to their respective Retail and Wholesale Customers located in the United States, where either Bell Canada or Nexxia or any of their
respective Affiliates as of the Commencement Date have existing facilities available in the United States, provided that once such existing facilities are at full capacity then any additional
facilities related thereto shall be purchased in accordance with Article 8 hereof.

	3.6.
	Notwithstanding
Articles 3.3 and 3.4 hereof, a Party shall be entitled to obtain Competing Services if:

	(a)
	the
Service Provider is unable to supply the Service Purchaser with a Service in accordance with the terms of this Agreement or any Specific Service Agreement; or

	(b)
	the
standards associated with a Service of the Service Provider fall materially below any agreed service standards set out in any Specific Service Agreements, provided that the
Service Provider shall be given a commercially reasonable period of time to remedy the default, further provided that the Service Provider acknowledges that in all instances time shall be of the
essence; or

	(c)
	requested
by a Customer and conferred at Senior Executive Level of both of the Parties; or

	(d)
	where,
notwithstanding Article 7 hereof, the Service Purchaser is left disadvantaged on a Service by Service basis or Customer by Customer basis, on mutual agreement at Senior
Executive Level. 

Provided
that, once the Service Provider is able to provide the Service in compliance with this Agreement, or any Specific Service Agreement, as the case may be, the Service Purchaser shall, subject
to ongoing compliance with this Agreement and any Specific Service Agreement, thereafter obtain such Service from the Service Provider, rather than a Competing Service. For greater certainty, nothing
herein is intended to require the Service Purchaser to terminate or amend any bona fide commercial arrangements made with an alternative supplier or
vendor. 

	3.7.
	The
Parties acknowledge that each of them may be subject to binding commercial agreements with third parties made prior to the date of execution of this Agreement. Notwithstanding
anything else contained herein, nothing in this Agreement shall be construed to require any Party hereto to act in a manner which would result in a default of its respective obligations under such
agreements; provided that should any such agreement conflict with the obligations of, or impede the performance of, a Party under this Agreement, that Party agrees, where possible, to use commercially
reasonable efforts to remove or minimize such conflict or impediment.

	3.8.
	The
Parties agree that they shall be entitled exclusively to manage their respective Services, provided that such management and provisioning of the Services shall be in accordance
with the terms and conditions of this Agreement and all Specific Service Agreements. For greater certainty, subject to any Specific Services Agreement, the Service Provider reserves the right to
change or discontinue any Service provided that such change or discontinuance shall not materially affect any Customers subscribing to the Services at the time of such change or discontinuance. 

9

 

	3.9.
	Each
Party shall maintain and enhance the reputation, and acceptance of its respective Services.

	3.10.
	The
Parties acknowledge and agree that their respective Affiliates are not parties to this Agreement. Each of Bell Canada and Nexxia agree to use commercially reasonable efforts to
cause their respective Affiliates to be included within the obligations which are referred to in the Articles 3.3, 3.4 and 3.5, as applicable. 

4.     REPRESENTATIONS AND WARRANTIES  

	4.1.
	Each
of Bell Canada and Nexxia, severally, represent and warrant to Teleglobe the following:

	(a)
	it
has full power and authority to enter into and perform its obligations under this Agreement;

	(b)
	this
Agreement has been duly authorized, executed and delivered by Bell Canada and Nexxia and constitutes a valid, binding and legally enforceable agreement of Bell Canada and Nexxia;

	(c)
	the
execution and delivery of this Agreement, and the performance of the covenants and agreements herein contained are not restricted by and do not conflict with its Articles of
Incorporation or bylaws or any resolutions of its directors or shareholders, or any contract, agreement or instrument to which either Bell Canada or Nexxia is either bound or subject; and

	(d)
	no
consent or approval of any Person is required in connection with the execution and delivery of this Agreement by it, or the observance and performance by it of its obligations
hereunder.

	4.2.
	Teleglobe
represents and warrants to Bell Canada and Nexxia the following:

	(a)
	Teleglobe
has full power and authority to enter into and perform its obligations under this Agreement and to enforce the terms and conditions set out herein with its Affiliates;

	(b)
	this
Agreement has been duly authorized, executed and delivered by Teleglobe and constitutes a valid, binding and legally enforceable agreement of Teleglobe;

	(c)
	the
execution and delivery of this Agreement, and the performance of the covenants and agreements herein contained are not restricted by and do not conflict with its Articles of
Incorporation or bylaws or any resolutions of its directors or shareholders, or any contract, agreement or instrument to which Teleglobe is either bound or subject; and

	(d)
	no
consent or approval of any Person is required by Teleglobe in connection with the execution and delivery of this Agreement by it, or the observance and performance by it of its
obligations hereunder.

	4.3.
	Each
Party represents and warrants to, and covenants and agrees with, the other Party that:

	(a)
	it
is capable of delivering its respective Service in compliance with the terms and conditions of this Agreement and any Specific Service Agreement;

	(b)
	each
employee, agent or sub-contractor provided by it hereunder shall be competent and qualified to perform those functions assigned to each such employee, agent or
subcontractor:

	(c)
	it
shall fulfill its obligations hereunder honestly and in good faith, and in a timely manner, exercising reasonable skill, care and diligence, in accordance with recognized
professional and industry standards; 

10

 

	(d)
	it
possesses the knowledge, skill and experience necessary for the provision and completion of its obligations in accordance with the requirements of this Agreement;

	(e)
	it
has secured and paid for, and is in good standing with respect to, all material permits, licenses and regulatory approvals applicable to or necessary for the performance of its
obligations as contemplated hereunder;

	(f)
	in
providing telecommunications services to Customer(s) related to Services acquired under this Agreement and Specific Services Agreements it shall, and shall cause its employees,
agents or sub-contractors to, comply in all material respects with all rules and regulations established by such Customer regarding the conduct of personnel, including without limitation
rules and regulations relating to environmental protection, occupational health and safety, human rights and security; and

	(g)
	neither
infringe any third party Intellectual Property Right, nor incorporate or utilize any third party Intellectual Property without a valid license, or other right to do so. 

5.     RIGHT OF FIRST REFUSAL FOR NEW SERVICES  

	5.1.
	Where
either Bell Canada or Nexxia have requirements for the delivery of any and all telecommunications services to their respective Customers outside the Territory, other than for
the Teleglobe Exclusive Services, or for Digital Video Services in the United States, each of Bell Canada or Nexxia shall grant to Teleglobe a right of first refusal ("ROFR") with respect to the
supply of such services (the "New Services") pursuant to Article 5.2 hereof. For greater certainty, the ROFR shall only be applicable on a service by service basis. As of the date of execution
of this Agreement the Parties hereby acknowledge and agree that Teleglobe's ROFR has been exercised, and no exclusivity rights have been granted by either Bell Canada or Nexxia, with respect to ATM
and Frame services.

	5.2.
	Further
to Article 5.1, where either Bell Canada or Nexxia (the "Initiating Party") has a requirement for the delivery of New Services, the Initialing Party shall provide
written notice (the "ROFR Notice") to Teleglobe as it relates to such requirements. The ROFR Notice shall contain the Initiating Party's requirements with sufficient detail to enable the formulation
of an informed decision by Teleglobe. Within thirty (30) days after receipt of the ROFR Notice, Teleglobe shall notify the Initiating Party, in writing, of its interest in entering into a
commercial arrangement with respect to the New Services identified in the ROFR Notice.

	5.3.
	If
Teleglobe either does not notify the Initiating Party of its interest within thirty (30) days or advises the Initiating Party that it is not interested in pursuing a
commercial arrangement for New Services, the Initiating Party may make alternative arrangements regarding such New Services with a third party; provided that, if there is any material change in the
Initiating Party's requirements or a material change in the terms the Initiating Party is prepared to consider or accept with any such third party, the Initiating Party shall deliver a new ROFR Notice
(before concluding arrangements with any third party) and the process described in this Article shall be repeated accordingly.

	5.4.
	If
Teleglobe advises the Initiating Party that it is interested in pursuing a Specific Service Agreement for New Services, then those Parties shall enter into negotiations, in good
faith, with respect to the appropriate terms and conditions of the arrangement, including without limitation, price, service standard, ordering and delivery, terms of sale, reporting, billing format,
marketing and promotional materials, advertising, service specifications, product development, service design and performance, training and support. For greater certainty, for any New Service where
the Parties have agreed to enter into a Specific Service Agreement, such New Services in addition to being provided pursuant to the said Specific Service 

11

 

Agreement
shall be deemed to be incorporated into, and be subject to, this Agreement and the applicable Schedule. 

	5.5.
	Notwithstanding
Article 5.4 hereof, where Teleglobe fails to meet any material conditions of the ROFR and provided that Teleglobe has been given due notice and the reasons for
its failure to meet such ROFR conditions along with a reasonable opportunity to cure such failure, the Initiating Party shall have the right, at any time, to terminate any negotiation at its sole
discretion and to pursue alternative arrangements for the New Services covered by the ROFR Notice with a third party; provided that the Initiating Party notify Teleglobe of such intention and does not
enter into such third party arrangement for a period of ten (10) Business Days following such notice; and further provided that, if there is any material change in the Initiating Party's
requirements or a material change in the terms the Initiating Party is prepared to consider or accept with any such third party, the Initiating Party shall deliver a new ROFR Notice to Teleglobe
(before concluding arrangements with any third party) and the process described in this Article shall be repeated accordingly.

	5.6.
	In
the event Teleglobe declines to offer a particular New Service then Bell Canada or Nexxia shall thereafter not be required to submit to Teleglobe additional ROFRs with respect to
such New Service until such time as Teleglobe notifies Bell Canada or Nexxia as applicable, that it is able to provide such New Service at which point Bell Canada or Nexxia shall thereupon consider
Teleglobe, on a forward going basis, as a potential Service Provider of such New Service and shall use reasonable commercial efforts within its business discretion to move such New Service to
Teleglobe at the most opportune time as business and technical considerations allow and further provide that Teleglobe meets all requirements originally set forth in the ROFR for such applicable New
Service. 

6.     TAXES  

	6.1.
	The
Parties hereby agree that Charges for the Services do not include applicable Commodity Taxes and further agreed to be bound by all tax legislation applicable to the provision of
the Services in and outside of the Territory as per the terms and conditions of the Specific Services Agreements. 

7.     MOST FAVOURED SERVICE PURCHASER  

	7.1.
	Notwithstanding
any Specific Service Agreement, commencing on July 1, 2001, and based on the Most Favoured Service Purchaser Assumptions set forth in Schedule 3
attached hereto, the Service Provider's charges (the "Charges") applicable for the purchase by the Service Purchaser of such Services, shall be at least as favorable as the charges provided by the
Service Provider to any other service purchaser receiving similar services. Subject to this Article 7, if the Service Provider provides services similar to the Services at a price more
favorable than the Charges to another service purchaser, the Service Provider shall extend such more favorable pricing to the Service Purchaser in accordance with the terms of this Agreement.

	7.2.
	Either
Nexxia and Bell Canada on the one hand, or Teleglobe on the other hand, shall be entitled to request from the other Party the delivery by such other Party, at Senior Executive
Level, of a duly sworn and executed certificate confirming that such other Party is delivering its Services, or any one of them, in compliance with the obligations set out in Section 7.1 above.

	7.3.
	The
Parties hereby agree to establish, acting in good faith, a price adjustment mechanism to be instituted in the event that a Party hereunder fails to comply with any pricing
provision of this Agreement. 

12

 

8.     NETWORK PROVISIONING COLLABORATION  

	8.1.
	Subject
to the rest of this Article 8, it is the general intent of the Parties to work together in order to reduce costs and increase efficiencies in provisioning Network
Facilities for the purposes contemplated in this Section, with the intent to purchase such Network Facilities from each other.

	8.2.
	The
Parties hereby agree to collaborate on the provisioning of Network Facilities as follows:

	(a)
	In
the cases of:

	i)
	Bell
Canada's or Nexxia's (the "Requesting Party"), requirements in the United States; or

	ii)
	Teleglobe's
(the "Requesting Party"), requirements in the Territory

	

	the
Requesting Party shall fulfill its requirements for Network Facilities from the other Party (the "Supplying Party") in accordance with Article 7
but subject to Article 8.2(c) hereof; or

	(b)
	in
the case of Cross-Border Facilities, where the Requesting Party has requirements for such Cross-Border Facilities, the Parties hereby agree to collaborate with one another as
follows: subject to Articles 8.2(c) and 8.4 the Requesting Party shall fulfill its requirements for Cross-Border Facilities from the Supplying Party on a cost recovery basis, provided that such
Cross-Border Facilities are available from the Supplying Party. As an underlying principle, the Requesting Party's use of Cross Border Facilities supplied on a cost recovery basis shall not at any
time undermine the existing cross-border revenue base of the Supplying Party. To facilitate this principle, commercial pricing of cross-border bandwidth opportunities shall be managed jointly between
the Parties. A quarterly review of market conditions, win/loss ratios, and other pertinent information on cross-border bandwidth opportunities, shall be held between the Parties at a Senior Executive
Level, to ensure mutual success through market viable pricing and ongoing customer focus.

	(c)
	notwithstanding
Articles 8.2(a) and 8.2(b)(i) the Requesting Party shall not be obligated to fulfill its requirements for Network Facilities or Cross-Border Facilities from the
other Party where the Requesting Party will be left materially disadvantaged provided that where the Requesting Party decides for itself to fulfill its requirements from a third party supplier it
shall obtain the consent of the other Party at Senior Executive Level prior to entering into any supply arrangement with a third party supplier, which consent cannot be withheld unreasonably.

	8.3.
	Notwithstanding
the foregoing, Bell Canada or Nexxia shall not be required to comply with Article 8.2(a) hereof where Bell Canada's or Nexxia's facility requirements in the
United States relate to local access facilities from a Bell Canada or Nexxia PoP (Point of Presence), or such Parties' Affiliates' PoP (to be existing as of the Commencement Date), or extended access
facilities where such extended access facilities can be considered predominantly off-net of Teleglobe's network.

	8.4.
	Notwithstanding
the foregoing, Bell Canada or Nexxia shall not be required to comply with Article 8.2(b) hereof where Bell Canada's or Nexxia's Cross-Border Facilities
requirements are for the purpose of cross-border switched minute terminations.

	8.5.
	Further
to Article 8.1 and subject to Article 8.2 above, during the term of this Agreement, the Parties agree to carry out bona
fide and good faith discussion with regard to the matters related to network planning and any outstanding matters related thereto and that may need to be addressed in further
definitive agreements. In this regard, the parties agree to make 

13

 

available
competent and qualified employees, agents and/or advisors to further the intent of this Article 8.4 and hereby agrees that they have reached the following preliminary understandings,
recognizing that the same are broadly stated and acknowledge that incorporation of such preliminary understandings, among other things, into the definitive agreements may require more specific and
detailed terms and conditions: 

	(a)
	the
Parties will bear their own costs and expenses in connection with all matters relating to network planning contemplated herein, and the delivery of any definitive agreements,
including without limitation, fees for their respective legal counsel, brokers, accountants and other professional advisors. No Party shall be authorized nor empowered to obligate the other or to
incur any costs or expenses on behalf of the other;

	(b)
	any
actions taken by the other Party in reliance on the preliminary principles set out herein shall be at that Party's sole risk. No Party shall have any liability to the other based
upon failure to enter into any agreement as contemplated herein; and

	(c)
	notwithstanding
anything in this Article 8 the network planning as contemplated herein shall not imply or confirm any intention on the part of either Party to enter into any
business relationship or any form of commitment by such Party with respect to the network planning. It is further acknowledged and agreed that, unless and until definitive agreements between the
Parties concerning the network planning are executed and delivered, neither party shall have any legal obligation of any kind whatsoever with respect to the network planning contemplated herein,
except, in the case of this Agreement, for the matters specifically agreed to herein. For purposes of this paragraph, the term "definitive agreement" does not include an executed memorandum of
understanding, letter of intent or other preliminary written agreement. 

9.     INDEMNITY AND LIMITATION OF LIABILITY  

	9.1.
	Without
limiting any indemnity and limitation of liability otherwise expressly provided for herein or in any Specific Service Agreement, each Party (the "Indemnifying Party") agrees
to indemnify, defend and hold harmless the other Party hereto including its officers, directors, employees and authorized agents (collectively the "Indemnified Party") from all claims, demands and
causes of action arising out of any claim or action threatened or brought for personal injury or physical property damages caused by the acts or omissions of the Indemnifying Party, or its officers,
directors, employees, authorized agents in connection with its obligations under this Agreement, save and except for those claims, demands or causes of action arising out of the negligence or wilful
misconduct of, or breach of this Agreement by the Indemnified Party, or its officers, directors, employees, and authorized agents.

	9.2.
	Notwithstanding
anything in this Agreement, under no circumstances will a Party be liable to any other Party for any indirect, special, consequential, incidental, economic or
punitive damages, including, without limitation, loss of data, loss of income, loss of profit or failure to realize expected savings arising directly or indirectly from the breach of contract
(including fundamental breach or otherwise), negligence, any act or omission of that Party or its representatives, or under any theory of law or equity, even if the Party had been advised of, had
knowledge of, or reasonably could have foreseen, the possibility of such damages. Notwithstanding anything to the contrary, in no event shall a Party be liable to any other Party for any direct
damages arising however in excess of the aggregate of $2,000,000. 

10.   CONFIDENTIAL INFORMATION  

	10.1.
	For
the purposes of this Article 10, "Informant" shall mean a Party to this Agreement providing any Confidential Information to the other Party to this Agreement and
"Recipient" 

14

 

shall
mean a Party to this Agreement receiving any Confidential Information from the Informant. 

	10.2.
	Each
Recipient shall use Informant's Confidential Information solely for the purposes of fulfilling their obligations or exercising their rights under this Agreement. Each Recipient
shall disclose Informant's Confidential Information only as expressly provided by this Agreement.

	10.3.
	Immediately
upon receipt of an Informant's request, the Recipient shall return to the Informant, or certify as destroyed, any and all tangible material concerning Confidential
Information, together with all copies, whether such material was made or compiled by the Recipient or furnished by the Informant.

	10.4.
	Each
Recipient will take all reasonable precautions, which in no event shall be less than the precautions used by Recipient to maintain the confidentiality of its own confidential
information, to maintain the secrecy of all Confidential Information disclosed to it by the Informant.

	10.5.
	Unless
it has received the prior written consent of the Informant, the Recipient will disclose Confidential Information of the Informant only to those directors, officers,
employees, agents, subcontractors and professional advisors of the Recipient with a necessary and direct need to know the Confidential Information for the purposes of this Agreement, and warrants that
all persons to whom Confidential Information is disclosed in accordance with this Article 10 will maintain the secrecy of such Confidential Information under obligations of
non-disclosure no less stringent than those contained herein.

	10.6.
	The
obligations set out in this Article 10 shall not apply to any Confidential Information that:

	(a)
	at
the time of disclosure is in the public domain;

	(b)
	shall
become generally known through no act of the Recipient (but only after it is published or becomes part of the public domain);

	(c)
	was
disclosed in good faith to the Recipient by a third party having legitimate possession and the right to make such disclosure and who did not require the Recipient to hold it in
confidence;

	(d)
	was
in legitimate possession of the Recipient prior to its disclosure by the Informant and was not acquired by the Recipient under an obligation of confidence;

	(e)
	is
independently developed by the Recipient without use of the Confidential Information; or

	(f)
	the
Recipient is required by a judicial, administrative or governmental body to disclose, provided that prior to disclosing any Confidential Information, Recipient promptly notifies
Informant and shall co-operate with Informant to seek appropriate protective orders with respect to such portion of Confidential Information as is the subject of any such required
disclosure.

	10.7.
	Subject
to the terms of this Agreement, each Party acknowledges that, notwithstanding the execution of this Agreement, the Informant maintains the sole and absolute discretion to
determine what, if any, of the Confidential Information it will release to a Recipient.

	10.8.
	Informant
represents and warrants that it has, or will at the relevant time have, the right to make the disclosures required pursuant to the terms of this Agreement.

	10.9.
	Ownership
of and all rights, title and interest to any and all Confidential Information, copies and other material shall at all times vest exclusively in the Informant. The
disclosure of Confidential Information shall not be construed as granting to the Recipient any rights, by 

15

 

license
or otherwise under any copyrights, copyright applications, trade secrets, trademarks or other intellectual property rights in any country relating to any of the Confidential Information which
the Informant or an associated corporation may now or hereafter own or to which it may hold licensing rights. 

	10.10.
	In
the event of a breach or threatened breach of this Article 12, the Parties agree that the harm suffered by the injured Party would not be compensable by monetary damages
alone and, accordingly, that the injured Party shall, in addition to other available legal or equitable remedies, be entitled to apply for an injunction or other such equitable remedy as against such
breach or threatened breach without the other Parties consent. 

11.   LIMITATION OF WARRANTY  

	11.1.
	EXCEPT
AS SPECIFICALLY SET FORTH HEREIN OR IN THE SPECIFIC SERVICE AGREEMENT, NEITHER PARTY MAKES REPRESENTATIONS, WARRANTIES OF ANY KIND OR NATURE WHATSOEVER, EXPRESS OR IMPLIED
WITH RESPECT TO THE SERVICES HEREUNDER OR OTHERWISE IN RELATION TO THIS AGREEMENT, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED REPRESENTATIONS, WARRANTIES OR CONDITIONS OF MERCHANTABILITY AND FITNESS
FOR A PARTICULAR PURPOSE, OR THOSE ARISING STATUTORILY, FROM A COURSE OF CONDUCT, PERFORMANCE OR DEALING, TRADE USAGE OR OTHERWISE, AND ALL SUCH REPRESENTATIONS, WARRANTIES AND CONDITIONS ARE HEREBY
EXCLUDED. 

12.   DISPUTE RESOLUTION  

	12.1.
	As
between any two Parties, each of such Parties shall attempt to amicably resolve any disagreement or dispute which may arise between them regarding the interpretation, the
performance of or the failure to perform under this Agreement.

	12.2.
	In
the event that any disagreement or dispute between such Parties continues for a period greater than thirty (30) days, the following procedures shall be followed by either
of such Party (the "Initiating Party") by providing to the other of such Party (the "Receiving Party") a full written description of the Initiating Party's position and the grounds for its
disagreement or dispute (the "Dispute Documentation") following which:

	(a)
	such
Parties shall meet within five (5) Business Days of the Receiving Party receiving the Dispute Documentation to review the information contained therein;

	(b)
	the
Receiving Party shall, within ten (10) Business Days of receipt of the Dispute Documentation provided by the Initiating Party, provide a written response to the Initiating
Party fully describing the Receiving Party's position; and

	(c)
	in
the event that the matter remains unresolved for a further ten (10) Business Days after receipt by the Initiating Party of the information provided by the Receiving Party
pursuant to this Article 12.2, such Parties shall, within a further ten (10) Business Days, arrange for their respective officers responsible for this Agreement to meet to attempt to
resolve the dispute. 

16

  

	12.3.
	In
the event that the process in Article 12.2 is followed and the dispute remains unresolved for a further ten (10) Business Days following the meeting of such
Parties' respective officers as described in Article 12.2(c), the following procedures shall apply:

	(a)
	the
dispute, shall be settled by arbitration in Ottawa in accordance with the Arbitration Act, S.O. 1991, c.17 (Ontario), or such other
place and in accordance with such other arbitration legislation as the Parties shall agree;

	(b)
	such
arbitration shall be heard by a panel of three (3) arbitrators;

	(c)
	each
of such Parties to the dispute shall nominate one (1) arbitrator, and the two arbitrators so nominated shall agree on the appointment of a third arbitrator as chairman
within ten (10) days of the confirmation of the appointment of the second arbitrator;

	(d)
	in
the event that the arbitrators nominated by such Parties fail to agree on a chairman within the period stated, either Party may apply to the Ontario Court (General Division)
pursuant to Article 9 of the Arbitration Act, S.O. 1991, c.17 (Ontario) or such other appropriate court pursuant to the agreed arbitration
legislation, as the case may be, for the purpose of appointing a third arbitrator as chairman;

	(e)
	all
arbitrators shall be qualified in law and shall have expertise in commercial law and the telecommunications industry in Canada;

	(f)
	any
monetary award by the arbitration panel shall include interest calculated from the date of initial written description pursuant to Article 12.2 using the current Bank of
Canada prime rate plus two percent (2%);

	(g)
	the
decision of the arbitration panel shall be final and binding upon such Parties, and in any event, shall be rendered within one hundred and twenty (120) days of the issuance
by the Initiating Party of its Dispute Documentation under Article 12.2; and

	(h)
	notwithstanding
anything herein, each of the Parties may at any time seek interim judicial relief against the other Party from any authority having jurisdiction with respect to the
subject matter of this Agreement. 

13.   GENERAL  

	13.1.
	Force Majeure. No party will be liable for delay or failure to perform its obligations herein (other than any payment obligations of
the Service Purchaser to the Service Provider) for causes beyond its reasonable control and without the fault or negligence of such party provided that such party will use due diligence in attempting
to remove the cause. Such causes will include, but not be limited to, strikes and labour disputes, acts of God or government, acts of wars, riot or epidemic. In the event that any such cause should
continue for a period of three (3) months, any Party which is not subject to the force majeure shall have the right to terminate this Agreement.

	13.2.
	Amendments. This Agreement may be amended or supplemented only in writing and signed on behalf of the Parties by authorised
signatories.

	13.3.
	Waiver. No failure or delay of either Party in exercising any right or remedy under this Agreement (and no course of dealing between
the Parties) shall operate as a waiver of any such right or remedy.

	13.4.
	Relationship of Parties. There is no relationship of agency, partnership, joint venture, employment between the Parties. Neither
Party has the authority to bind any other Party or to incur any obligation or liability on any other Party's behalf. 

17

 

	13.5.
	Notices. All notices, requests, demands or communications required or permitted hereunder shall be in writing, and delivered either
personally or by facsimile or electronic transmission by e-mail, or certified or registered mail to the respective addresses as set forth below (or at such other addresses as shall be
given in writing by either Party to the other). All notices, requests, demands or communications shall be deemed to have been given upon personal delivery or on the Business Day following the date of
the facsimile or electronic transmission by e-mail, or when received if sent by certified or registered mail. 

	 	If to Bell Canada and Nexxia:	 	If to Teleglobe:
	

 	

Pam Went

Senior Vice-President

Floor 8, 483 Bay Street

Toronto, Ontario

M5G 2C9	
 	

J.P. Gratton

Vice-President—Carrier Services

185 The Westmall, Suite 620

Toronto, Ontario

M9C 5L5
	
 	

Phone: 416-353-6670

Facsimile: 416-977-9366	
 	

Phone: 416-287-5499

Facsimile: 416-287-5476
	
 	

Copy to:	
 	

Copy to:
	

 	

Tim McGee

Chief Legal Officer

Floor 6N, 483 Bay Street

Toronto, Ontario

M5G 2C9	
 	

Teleglobe USA Inc.

11480 Commerce Park Drive

Reston, Virginia, USA

20191

Attention: General Counsel
	

 	

Facsimile: 416-593-6882	
 	

Facsimile: 703-755-2694

	13.6.
	Third Party Beneficiaries. The provisions of this Agreement are solely for the benefit of the Parties. No other person, including
invitees, members of the general public and other third Parties are intended to have nor shall have any rights whatsoever under this Agreement, whether for injury, lose or damage to persons or
property, or for economic loss, damage or injury.

	13.7.
	Equitable Relief. Either Party may seek injunctive or other equitable relief to remedy any actual or threatened dispute.

	13.8.
	Entire Agreement. This Agreement, including any supplements hereto, represent the entire agreement between the Parties relating to
the subject matter of this Agreement and supersedes any prior representations, discussions, negotiations and agreements, whether written or oral.

	13.9.
	Order of Precedence. In the event of any conflict or inconsistency among or between this Agreement, and any Specific Service
Agreement the terms and conditions of this Agreement shall prevail.

	13.10.
	Survival. The Parties hereby agree that the following Articles 9, 10, 12 and 13.10 as well as other provisions which survive
at law, shall survive termination and/or expiration of this Agreement.

	13.11.
	Independent Counsel. This Agreement has been negotiated at arms length and jointly prepared by the Parties and their respective
counsel of choice.

	13.12.
	Assignment. Any Party to this Agreement shall not assign any of its rights or obligations hereunder without the prior written
consent of the other Parties. Notwithstanding the 

18

 

foregoing,
any of such Parties shall have the right to assign all or part of this Agreement to an Affiliate. 

	13.13.
	Compliance with Law. The Parties will, at their own expense, operate in full compliance with all laws, rules and regulations
applicable to, and maintain in force all licenses and permits required for, their performance under this Agreement. 

	Signed for and on behalf of TELEGLOBE INC.	 	Signed on behalf of BELL CANADA and BCE NEXXIA INC.
	

/s/  MARC BOUCHARD      
 Name Marc Bouchard	
 	

/s/  R.J. REYNOLDS      
 Name
	

Vice President
 Title	
 	

President & CEO, Bell Nexxia
 Title
	

    
 Date	
 	

Dec. 20/2001
 Date

19

 
 
 

SCHEDULE 1    
    
    TELEGLOBE SERVICES    
    

Canada
Direct 

Co-Location 

Digital
Video Services 

GlobeAccess64
(ISDN) 

Globe
ATM 

Globe
Data 

Globe
Frame 

Globe
Internet (IP Transit) 

Globe
IPVPN 

Hosting
Services (Internet Data Centre) 

IDDD—Outbound

International
Private Line (IPL)—incl. Globe Sat and Globestream 

ITFS/UIFN
(International Toll Free Service / Universal International Free Number) 

IVPN
(International Virtual Private Network) 

Operator
Handled (OH) 

Note: Further services to be added from time to time pursuant to Service Specific Agreements  

20

 
 
 

SCHEDULE 2    
    
    BELL SERVICES    
    

Access
(Voice & Data) 

Band
Width Select (Broadband) 

Carrier
Access (Interconnection) 

Centrex

Co-Location

Digital
Video—incl. Serial Digital Interface 

Directory
Services 

Gateways
(Terminal Equipment) 

Megalink 

Operator
Services 

Switch
Minute Terminations in Canada 

Toll-Free 

911
Public Emergency 

Note: Further services to be added from time to time pursuant to Service Specific Agreements  

21

  

 
 

SCHEDULE 3    
    
    Most Favoured Service Purchaser (MFSP) Assumptions    
    

GENERAL ASSUMPTIONS  

	•
	All
services sold or provided between the Parties shall be offered at the lowest rates offered to any existing customer.

	•
	MFSP
pricing will apply without regard to *** of contract.

	•
	MFSP
pricing will apply without regard to *** with the exception that appropriate changes may be made to reflect the costs of *** and to recognize specific market conditions
that may or may not be otherwise reflected in MFSP.

	•
	Unless
noted otherwise, MFSP pricing is effective July 1, 2001.

	•
	Notwithstanding
the above, MFSP will apply to all services by January 1, 2003.

	•
	MFSP
pricing will be based on *** prices offered to other customers, where a Party purchases a ***. 

TELEGLOBE SERVICES—GENERAL ASSUMPTIONS  

	•
	MFSP
pricing will be the lower of:

	•
	Rates
offered by Teleglobe to other customers for the same Service, or

	•
	Rates
in effect to Canadian Customers, prior to the assignment of contracts to Bell Canada or Nexxia, as the case may be, adjusted for changes in Teleglobe's underlying
costs in providing this service. 

	 
	 	MFSP Price
 

	Canada Direct	 	Price will be as per the January 1, 1999 contract with the following change(s):
	

 	
 	

•	
 	

The volume shortfall will no longer be applicable as of January 1, 2001.
	

Co-Location	
 	

Colocation associated with the provisioning of facilities described in Article 8 will be provided at cost, otherwise, colocation will be provided at best available rate.
	

Digital Video Services	
 	

Best Available Rate on new/renewed contracts
	

Globe Access64 (ISDN)	
 	

[See Schedule 3(c)]
	

Globe ATM	
 	

Best Available Rate on new/renewed contracts
	

Globe Data	
 	

Best Available Rate on new/renewed contracts
	

Globe Frame	
 	

Best Available Rate on new/renewed contracts

	***
	Portions
hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 406
of the Securities Act of 1933, as amended. 

22

 

	 
	 	MFSP Price
 

	

Globe Internet (IP Transit)	
 	

[See Schedule 3(b)]
	

Globe IPVPN	
 	

Best Available Rate on new/renewed contracts
	

Hosting Services (Internet Data Centre)	
 	

Best Available Rate on new/renewed contracts
	

IDDD-Outbound	
 	

[See Schedule 3(a)]
	

International Private Line (IPL) Includes Globe Sat and Globestream	
 	

Best Available Rate on new/renewed contracts
	

ITFS/UIFN	
 	

[See Schedule 3 (d)]
	

IVPN (Intl. Virtual Private Network)	
 	

 	
 	

 
	 	
 Voice	
 	

Best Available Rate
	 	
 Data	
 	

Best Available Rate on new/renewed contracts
	

Operator Handled (OH)	
 	

[See Schedule 3(a)]

Note: Specific assumptions are included with Schedules 3(a), 3(b), 3(c), 3(d) and 3(e).  

BELL SERVICES—GENERAL ASSUMPTIONS  

	•
	For
tariffed services, pricing may not be discounted under any circumstance.

	•
	MFSP
pricing for non-tariffed services shall be equal to the lowest rates offered to any wholesale customer. 

	 
	 	MFSP Price

	Access (Voice & Data)	 	General Tariff / Best Available Pricing
	

BandWidth Select (Broadband)	
 	

Best Available Rate on new/renewed contracts
	

Carrier Access (Interconnection)	
 	

General Tariff
	

Centrex	
 	

General Tariff
	

Co-Location	
 	

Colocation associated with the provisioning of facilities described in Article 8 will be provided at cost, otherwise, collocation will be provided at best available rate.
	

Digital Video

Includes Serial Digital Interface	
 	

Best Available Rate on new/renewed contracts
	

Directory Services	
 	

General Tariff
	

Gateways (Terminal Equipment)	
 	

Best Available Rate on new/renewed contracts
	

Megalink	
 	

General Tariff
	

Operator Services	
 	

General Tariff
	 	 	 

23

 

	

Switch Minute Terminations in Canada	
 	

[see Schedule 3(e)]
	

Toll-Free	
 	

Best Available Rate on new/renewed contracts
	

911 Public Emergency	
 	

General Tariff

24

  

 
 

SCHEDULE 3(a)    
    
    MFSP PRICING—IDDD Outbound (Canadian Origination)    
    

IDDD OUTBOUND (CANADIAN ORIGINATION) ASSUMPTIONS  

	•
	MFSP
pricing shall be updated on a weekly or biweekly basis and shall be effective upon 5-business days notice.

	•
	All
rates in CA$.

	•
	Calls
shall be measured in 6 second increments, rounding up to next highest 6 seconds, with all billing and rates expressed on a per minute basis.

	•
	Countries
previously terminated on Direct Connect routes by Bell Canada or Bell Nexxia, as the case may be, are identified in Table 1. The rates to countries in Table 1 for
wholesale customer traffic routing directly from the customer to Teleglobe will be as identified in Table 2 or subsequent updates. The rates to countries in Table 1 for traffic routed directly from
Bell or Bell Nexxia, as the case may be, to Teleglobe will be the lower of:

	a)
	Bell's
or Bell Nexxia's, as the case may be, cost structue prior to July 1, 2001 (and as reflected in Table 1), in which case, Teleglobe will increase the amount of Canadian
inbound terminations to reflect the inbound traffic previously received by Bell Canada or Bell Nexxia, as the case may be, on the Direct Connect routes; or

	b)
	Teleglobe's
MFSP Pricing as identified in Table 2 or subsequent updates. 

25

 

Table 1 (as of July 1, 2001):  

OSR = Outbound Settlement Rate  

ISR = Inbound Settlement Rate  

IOR = Inbound/Outbound Rate  

AITC = Average Inbound Termination Cost = Sum (Inbound Distribution * Inbound Rates(1))  

IPLC = International Private Line Costs = $0.0025 US$ / minute  

Rate =
OSR - (IOR * ISR) + (IOR * AITC) + IPLC 

	Country
 
	 	OSR

(as of July 1, 2001)
	 	ISR

(as of July 1, 2001)
	 	IOR

	Australia	 	$	0.16738 US$	 	$	0.15 US$	 	1.00
	Belgium	 	 	0	 	 	0	 	1.20
	France	 	 	0.017865 sdr	 	 	0.015875 sdr	 	0.844
	Hong Kong	 	$	0.055 CA$	 	 	0	 	0.00
	Ireland	 	 	0	 	 	0	 	1.40
	Italy	 	 	0.029273 sdr	 	 	0.020188 sdr	 	0.58
	Japan	 	 	0.051 sdr	 	 	0.029 sdr	 	1.00
	Mexico(2)	 	$	0.157102 US$	 	$	0.152497 US$	 	0.77
	Netherlands	 	 	0.035 sdr	 	 	0.036 sdr	 	1.00
	Philippines	 	$	0.1635 CA$	 	 	0	 	0.00
	Switzerland	 	 	0.025 sdr	 	 	0.025 sdr	 	1.00
	Trinidad & Tobago	 	$	0.2702 CA$	 	 	0	 	0.00
	United Kingdom	 	 	0.036 sdr	 	 	0.036 sdr	 	1.00
	Inmarsat	 	 	 	 	 	 	 	 
	 	A (Voice)	 	$	4.00 US$	 	 	0	 	0.00
	 	B (Voice)	 	$	1.45 US$	 	 	0	 	0.00
	 	B (Voice - 870)	 	$	1.94 US$	 	 	0	 	0.00
	 	B (HSD)	 	$	8.65 US$	 	 	0	 	0.00
	 	M (Voice)	 	$	1.65 US$	 	 	0	 	0.00
	 	M (Voice - 870)	 	$	1.94 US$	 	 	0	 	0.00
	 	Mini-M (Voice)	 	$	1.25 US$	 	 	0	 	0.00
	 	Mini-M (Voice 870)	 	$	1.94 US$	 	 	0	 	0.00
	 	M4 (Voice)	 	$	1.25 US$	 	 	0	 	0.00
	 	M4 (Voice-870)	 	$	1.94 US$	 	 	0	 	0.00
	 	M4 (HSD)	 	$	6.90 US$	 	 	0	 	0.00

Note:

	(1)
	Inbound Rates—Provided in Schedule 3(e) Switch Minute Terminations in Canada.

 
	(2)
	 OSR and ISR rate to change as per future US-Mexico settlement agreements.  

26

 

INBOUND DISTRIBUTION (for NPA's 204 to 519)—as of July 1, 2001  

	Country
 
	 	204
	 	250
	 	289
	 	306
	 	—
	 	416
	 	418
	 	450
	 	506
	 	514
	 	519
	 
	Australia	 	4.4	%	0.0	%	9.1	%	3.6	%	0.5	%	13.4	%	2.0	%	4.2	%	1.5	%	14.7	%	7.2	%
	Belgium	 	1.9	%	3.0	%	7.4	%	0.9	%	6.0	%	10.9	%	1.7	%	3.4	%	1.2	%	11.9	%	5.9	%
	France	 	0.9	%	1.2	%	9.2	%	0.5	%	2.7	%	13.6	%	2.1	%	4.3	%	0.8	%	14.9	%	7.3	%
	Hong Kong	 	—	 	—	 	—	 	—	 	—	 	—	 	—	 	—	 	—	 	—	 	—	 
	Ireland	 	1.9	%	3.0	%	7.4	%	0.9	%	6.0	%	10.9	%	1.7	%	3.4	%	1.2	%	11.9	%	5.9	%
	Italy	 	1.4	%	1.8	%	8.9	%	0.4	%	3.4	%	13.1	%	2.0	%	4.1	%	0.4	%	14.4	%	7.1	%
	Japan	 	3.0	%	0.0	%	9.5	%	1.9	%	0.1	%	14.1	%	2.1	%	4.4	%	1.1	%	15.4	%	7.6	%
	Mexico	 	3.0	%	4.2	%	6.9	%	1.3	%	7.0	%	10.1	%	1.5	%	3.2	%	0.6	%	11.1	%	5.5	%
	Netherlands	 	2.0	%	3.4	%	6.6	%	1.1	%	10.7	%	9.7	%	1.5	%	3.0	%	1.2	%	10.6	%	5.2	%
	Philippines	 	—	 	—	 	—	 	—	 	—	 	—	 	—	 	—	 	—	 	—	 	—	 
	Switzerland	 	2.0	%	4.3	%	6.9	%	1.1	%	7.2	%	10.3	%	1.6	%	3.2	%	0.3	%	11.2	%	5.5	%
	Trinidad & Tobago	 	—	 	—	 	—	 	—	 	—	 	—	 	—	 	—	 	—	 	—	 	—	 
	United Kingdom	 	2.1	%	3.6	%	6.9	%	1.1	%	7.3	%	10.2	%	1.5	%	3.2	%	1.0	%	11.1	%	5.5	%
	Inmarsat	 	—	 	—	 	—	 	—	 	—	 	—	 	—	 	—	 	—	 	—	 	—	 

INBOUND DISTRIBUTION (for NPA's 604 to 905)—as of July 1, 2001  

	Country
 
	 	604
	 	613
	 	647
	 	705
	 	—
	 	—
	 	807
	 	819
	 	867
	 	902
	 	905
	 
	Australia	 	0.0	%	7.2	%	13.4	%	2.3	%	0.9	%	0.2	%	0.5	%	2.2	%	0.0	%	3.6	%	9.1	%
	Belgium	 	11.4	%	5.8	%	10.9	%	1.9	%	1.3	%	1.9	%	0.4	%	1.8	%	0.0	%	3.1	%	7.4	%
	France	 	4.7	%	7.3	%	13.6	%	2.4	%	0.4	%	0.8	%	0.5	%	2.3	%	0.0	%	1.1	%	9.2	%
	Hong Kong	 	—	 	—	 	—	 	—	 	—	 	—	 	—	 	—	 	—	 	—	 	—	 
	Ireland	 	11.4	%	5.8	%	10.9	%	1.9	%	1.3	%	1.9	%	0.4	%	1.8	%	0.0	%	3.1	%	7.4	%
	Italy	 	6.8	%	7.0	%	13.1	%	2.3	%	0.3	%	1.1	%	0.5	%	2.2	%	0.0	%	1.0	%	8.9	%
	Japan	 	0.0	%	7.5	%	14.1	%	2.4	%	0.6	%	0.0	%	0.5	%	2.3	%	0.0	%	4.0	%	9.5	%
	Mexico	 	16.1	%	5.4	%	10.1	%	1.8	%	0.2	%	2.2	%	0.4	%	1.7	%	0.0	%	1.0	%	6.9	%
	Netherlands	 	13.3	%	5.2	%	9.7	%	1.7	%	0.7	%	3.3	%	0.3	%	1.6	%	0.0	%	2.5	%	6.6	%
	Philippines	 	—	 	—	 	—	 	—	 	—	 	—	 	—	 	—	 	—	 	—	 	—	 
	Switzerland	 	16.7	%	5.5	%	10.3	%	1.8	%	0.2	%	2.2	%	0.4	%	1.7	%	0.0	%	0.9	%	6.9	%
	Trinidad & Tobago	 	—	 	—	 	—	 	—	 	—	 	—	 	—	 	—	 	—	 	—	 	—	 
	United Kingdom	 	13.9	%	5.4	%	10.2	%	1.8	%	1.1	%	2.3	%	0.4	%	1.7	%	0.0	%	2.8	%	6.9	%
	Inmarsat	 	—	 	—	 	—	 	—	 	—	 	—	 	—	 	—	 	—	 	—	 	—	 

Table 2: IDDD Outbound (Canadian Origination) MFSP Rates  

	Destinations
 
	 	Rate/Minute CA$

(as of October 1, 2001)
	 	Note

	ALBANIA	 	0.213	 	 
	ALGERIA	 	0.233	 	 
	AMERICAN SAMOA	 	0.139	 	 
	AMERICAN SAMOA—MOBILE	 	0.141	 	 
	ANDORRA	 	0.083	 	 
	ANDORRA—MOBILE	 	0.127	 	 
	ANGOLA	 	0.240	 	 
	ANGUILLA	 	0.320	 	 
	ANTIGUA	 	0.316	 	 
	ARGENTINA	 	—	 	 
	ARGENTINA—MOBILE/PREMIUM	 	0.133	 	 
	 	 	 	 	 

27

 

	ARGENTINA—BUENOS AIRES	 	0.074	 	 
	ARGENTINA—OTHER	 	0.131	 	 
	ARMENIA	 	—	 	 
	ARMENIA—YEREVAN	 	0.196	 	 
	ARMENIA—OTHER	 	0.278	 	 
	ARUBA	 	0.208	 	 
	ASCENSION	 	0.849	 	 
	AUSTRALIA	 	0.044	 	Bell's Direct Routes
	AUSTRALIA—MOBILE	 	0.266	 	 
	ANTARCTICA—CASEY	 	0.468	 	 
	ANTARCTICA—DAVIS	 	0.468	 	 
	ANTARCTICA—MAQUARIE STATION	 	0.468	 	 
	ANTARCTICA—MAWSON	 	0.468	 	 
	AUSTRIA	 	—	 	 
	AUSTRIA—MOBILE	 	0.245	 	 
	AUSTRIA—VIENNA	 	0.041	 	 
	AUSTRIA—OTHER	 	0.048	 	 
	AZERBAIJAN	 	0.261	 	 
	BAHAMAS	 	0.153	 	 
	BAHRAIN	 	0.270	 	 
	BAHRAIN—MOBILE	 	0.282	 	 
	BANGLADESH	 	—	 	 
	BANGLADESH—MOBILE	 	0.564	 	 
	BANGLADESH—CHITTAGONG	 	0.168	 	 
	BANGLADESH—DHAKA	 	0.159	 	 
	BANGLADESH—OTHER	 	0.564	 	 
	BARBADOS	 	0.274	 	 
	BELARUS	 	0.276	 	 
	BELGIUM	 	—	 	 
	BELGIUM—MOBILE	 	0.306	 	 
	BELGIUM—BRUSSELS	 	0.020	 	Bell's Direct Routes
	BELGIUM—OTHER	 	0.020	 	Bell's Direct Routes
	BELIZE	 	0.311	 	 
	BENIN	 	0.278	 	 
	BENIN—MOBILE	 	0.302	 	 
	BENIN—AUDIOTEXT	 	Service Not Available	 	Service Not Available
	BERMUDA	 	0.122	 	 
	BHUTAN	 	0.268	 	 
	BOLIVIA	 	—	 	 
	BOLIVIA—LA PAZ	 	0.192	 	 
	BOLIVIA—OTHER	 	0.319	 	 
	BOSNIA HERZEGOVINA	 	0.234	 	 
	BOSNIA HERZEGOVINA—MOBILE	 	0.245	 	 
	BOTSWANA	 	0.196	 	 
	BRAZIL	 	—	 	 
	BRAZIL—MOBILE	 	0.245	 	 
	BRAZIL—RIO DE JANEIRO	 	0.086	 	 
	BRAZIL—SAO PAULO	 	0.070	 	 
	BRAZIL—OTHER	 	0.164	 	 
	 	 	 	 	 

28

 

	BRUNEI	 	0.172	 	 
	BULGARIA	 	—	 	 
	BULGARIA—MOBILE	 	0.280	 	 
	BULGARIA—SOFIA	 	0.130	 	 
	BULGARIA—OTHER	 	0.180	 	 
	BURKINA FASO	 	0.425	 	 
	BURUNDI	 	0.217	 	 
	CAMEROON	 	—	 	 
	CAMEROON—DUALA	 	0.180	 	 
	CAMEROON—OTHER	 	0.384	 	 
	CAMEROON—AUDIOTEXT	 	Service Not Available	 	Service Not Available
	CAPE VERDE	 	0.450	 	 
	CAYMAN	 	0.184	 	 
	CENTRAL AFRICAN REPUBLIC	 	0.294	 	 
	CENTRAL AFRICAN REPUBLIC—AUDIOTEXT	 	Service Not Available	 	Service Not Available
	CHAD	 	0.415	 	 
	CHAD—AUDIOTEXT	 	Service Not Available	 	Service Not Available
	CHILE	 	—	 	 
	CHILE—MOBILE	 	0.335	 	 
	CHILE—SANTIAGO	 	0.063	 	 
	CHILE—OTHER	 	0.063	 	 
	CHILE—AUDIOTEXT	 	Service Not Available	 	Service Not Available
	CHINA	 	—	 	 
	CHINA—MOBILE	 	0.106	 	 
	CHINA—BEIJING	 	0.066	 	 
	CHINA—FUZHOU	 	0.086	 	 
	CHINA—GUANGZHOU	 	0.089	 	 
	CHINA—SHANGHAI	 	0.066	 	 
	CHINA—OTHER	 	0.097	 	 
	CHRISTMAS ISLAND	 	0.528	 	 
	COCOS ISLAND	 	0.528	 	 
	COLUMBIA	 	—	 	 
	COLOMBIA—MOBILE	 	0.176	 	 
	COLOMBIA—BARANGUILLA	 	0.131	 	 
	COLOMBIA—BOGOTA	 	0.129	 	 
	COLOMBIA—CALI	 	0.129	 	 
	COLOMBIA—MEDELLIN	 	0.129	 	 
	COLOMBIA—PEREIRA	 	0.124	 	 
	COLOMBIA—OTHER	 	0.137	 	 
	COMOROS	 	0.376	 	 
	CONGO	 	0.274	 	 
	COOK ISLANDS	 	0.728	 	 
	COOK ISLANDS—AUDIOTEXT	 	Service Not Available	 	Service Not Available
	COSTA RICA	 	0.141	 	 
	COSTA RICA—MOBILE	 	0.150	 	 
	COTE DIVOIRE	 	—	 	 
	COTE DIVOIRE—MOBILE	 	0.302	 	 
	COTE DIVOIRE—ABIDJAN	 	0.227	 	 
	COTE DIVOIRE—OTHER	 	0.302	 	 
	 	 	 	 	 

29

 

	CROATIA	 	0.204	 	 
	CROATIA—MOBILE	 	0.283	 	 
	CUBA	 	1.491	 	 
	CUBA—GUANTANAMO	 	0.391	 	 
	CYPRUS	 	0.152	 	 
	CYPRUS—MOBILE	 	0.221	 	 
	CZECH REPUBLIC	 	—	 	 
	CZECH REPUBLIC—MOBILE	 	0.209	 	 
	CZECH REPUBLIC—PRAGUE	 	0.061	 	 
	CZECH REPUBLIC—OTHER	 	0.086	 	 
	DENMARK	 	—	 	 
	DENMARK—MOBILE	 	0.275	 	 
	DENMARK—COPENHAGEN	 	0.035	 	 
	DENMARK—OTHER	 	0.041	 	 
	DIEGO GARCIA	 	1.064	 	 
	DJIBOUTI	 	0.466	 	 
	DOMINICA	 	0.327	 	 
	DOMINICAN REP.	 	0.113	 	 
	DOMINICAN REP.—MOBILE	 	#N/A	 	breakout removed; will be rated as "Dominican Rep."
	EAST TIMOR	 	2.837	 	 
	ECUADOR	 	—	 	 
	ECUADOR—MOBILE	 	0.335	 	 
	ECUADOR—GUAYAQUIL	 	0.192	 	 
	ECUADOR—QUITO	 	0.237	 	 
	ECUADOR—OTHER	 	0.237	 	 
	EGYPT	 	—	 	 
	EGYPT—MOBILE	 	0.409	 	 
	EGYPT—CAIRO	 	0.376	 	 
	EGYPT—OTHER	 	0.376	 	 
	EL SALVADOR	 	0.188	 	 
	EL SALVADOR—MOBILE	 	0.213	 	 
	EQUATORIAL GUINEA	 	0.400	 	 
	ERITREA	 	0.751	 	 
	ESTONIA	 	0.069	 	 
	ESTONIA—MOBILE	 	0.156	 	 
	ETHIOPIA	 	0.867	 	 
	FALKLAND ISLANDS	 	0.867	 	 
	FAROE ISLAND	 	0.125	 	 
	FIJI	 	0.531	 	 
	FIJI—AUDIOTEXT	 	Service Not Available	 	Service Not Available
	FINLAND	 	0.058	 	 
	FINLAND—MOBILE	 	0.286	 	 
	FR.POLYNESIA	 	0.409	 	 
	FRANCE	 	—	 	 
	FRANCE—MOBILE	 	0.327	 	 
	FRANCE—PARIS CENTRAL	 	0.024	 	Bell's Direct Routes
	FRANCE—OTHER	 	0.024	 	Bell's Direct Routes
	 	 	 	 	 

30

 

	FRENCH GUIANA	 	0.229	 	 
	GABON	 	0.221	 	 
	GABON—MOBILE	 	0.229	 	 
	GAMBIA	 	0.368	 	 
	GEORGIA	 	—	 	 
	GEORGIA—TBILISI	 	0.133	 	 
	GEORGIA—OTHER	 	0.158	 	 
	GERMANY	 	—	 	 
	GERMANY—MOBILE	 	0.260	 	 
	GERMANY—FRANKFURT	 	0.038	 	 
	GERMANY—OTHER	 	0.046	 	 
	GHANA	 	—	 	 
	GHANA—MOBILE	 	0.270	 	 
	GHANA—OTHER	 	0.270	 	 
	GIBRALTAR	 	0.113	 	 
	GIBRALTAR—MOBILE	 	0.228	 	 
	GREECE	 	—	 	 
	GREECE—MOBILE	 	0.294	 	 
	GREECE—ATHENS	 	0.077	 	 
	GREECE—OTHER	 	0.094	 	 
	GREENLAND	 	1.032	 	 
	GRENADA	 	0.322	 	 
	GRENADA—AUDIOTEXT	 	Service Not Available	 	Service Not Available
	GUADELOUPE	 	0.223	 	 
	GUAM	 	0.107	 	 
	GUATEMALA	 	0.270	 	 
	GUINEA BISSAU	 	2.525	 	 
	GUINEA BISSAU—AUDIOTEXT	 	Service Not Available	 	Service Not Available
	GUINEA REP.	 	0.200	 	 
	GUYANA	 	1.155	 	 
	GUYANA—AUDIOTEXT	 	Service Not Available	 	Service Not Available
	HAITI	 	—	 	 
	HAITI—PORT—AU—PRINCE	 	0.335	 	 
	HAITI—OTHER	 	0.346	 	 
	HAITI—SPEC. SERVICES	 	0.696	 	 
	HONDURAS	 	0.548	 	 
	HONG KONG	 	0.055	 	Bell's Direct Routes
	HONG KONG—MOBILE	 	#N/A	 	breakout removed; will be rated as "Hong Kong"
	HUNGARY	 	—	 	 
	HUNGARY—MOBILE	 	0.290	 	 
	HUNGARY—BUDAPEST	 	0.080	 	 
	HUNGARY—OTHER	 	0.108	 	 
	ICELAND	 	0.070	 	 
	ICELAND—MOBILE	 	0.359	 	 
	INDIA	 	—	 	 
	INDIA—MOBILE	 	0.622	 	 
	INDIA—BANGALORE	 	0.622	 	 
	 	 	 	 	 

31

 

	INDIA—BOMBAY	 	0.622	 	 
	INDIA—CALCUTTA	 	0.622	 	 
	INDIA—HYDRABAD	 	0.400	 	 
	INDIA—MADRAS	 	0.622	 	 
	INDIA—NEW DELHI	 	0.402	 	 
	INDIA—OTHER	 	0.622	 	 
	INDONESIA	 	—	 	 
	INDONESIA—MOBILE	 	0.237	 	 
	INDONESA—JAKARTA	 	0.078	 	 
	INDONESIA—SURABYA	 	0.125	 	 
	INDONESIA—OTHER	 	0.148	 	 
	INMARSAT A / AOR - E	 	6.228	 	Bell's Direct Routes
	INMARSAT A / POR	 	6.228	 	Bell's Direct Routes
	INMARSAT A / IOR	 	6.228	 	Bell's Direct Routes
	INMARSAT A / AOR - W	 	6.228	 	Bell's Direct Routes
	INMARSAT B / AOR - E	 	2.258	 	Bell's Direct Routes
	INMARSAT B / POR	 	2.258	 	Bell's Direct Routes
	INMARSAT B / IOR	 	2.258	 	Bell's Direct Routes
	INMARSAT A / AOR - W	 	2.258	 	Bell's Direct Routes
	INMARSAT B / Unified	 	3.021	 	Bell's Direct Routes
	INMARSAT M / AOR - E	 	2.569	 	Bell's Direct Routes
	INMARSAT M / POR	 	2.569	 	Bell's Direct Routes
	INMARSAT M / IOR	 	2.569	 	Bell's Direct Routes
	INMARSAT M / AOR - W	 	2.569	 	Bell's Direct Routes
	INMARSAT M / Unified	 	3.021	 	Bell's Direct Routes
	INMARSAT Mini M / AOR - E	 	1.946	 	Bell's Direct Routes
	INMARSAT Mini M / POR	 	1.946	 	Bell's Direct Routes
	INMARSAT Mini M / IOR	 	1.946	 	Bell's Direct Routes
	INMARSAT Mini M / AOR - W	 	1.946	 	Bell's Direct Routes
	INMARSAT Mini M / Unified	 	3.021	 	Bell's Direct Routes
	INMARSAT Aero / AOR - E	 	9.893	 	 
	INMARSAT Aero / POR	 	9.893	 	 
	INMARSAT Aero / IOR	 	9.893	 	 
	INMARSAT Aero / AOR - W	 	9.893	 	 
	IRAN	 	0.306	 	 
	IRAN—MOBILE	 	0.486	 	 
	IRAQ	 	0.843	 	 
	IRIDIUM 6	 	2.098	 	 
	IRIDIUM 7	 	3.903	 	 
	IRISH REP	 	—	 	 
	IRELAND—MOBILE	 	0.264	 	 
	IRELAND—DUBLIN	 	0.023	 	Bell's Direct Routes
	IRELAND—OTHER	 	0.023	 	Bell's Direct Routes
	ISRAEL	 	0.092	 	 
	ISRAEL—MOBILE	 	0.216	 	 
	ITALY	 	—	 	 
	ITALY—MOBILE	 	0.278	 	 
	ITALY—MILAN	 	0.051	 	Bell's Direct Routes
	ITALY—ROME	 	0.051	 	Bell's Direct Routes
	 	 	 	 	 

32

 

	ITALY—OTHER	 	0.051	 	Bell's Direct Rotues
	JAMAICA	 	0.270	 	 
	JAMAICA—MOBILE	 	0.384	 	 
	JAPAN	 	—	 	 
	JAPAN—MOBILE	 	0.359	 	 
	JAPAN—MILITARY	 	0.061	 	Bell's Direct Routes
	JAPAN—NAGOYA	 	0.061	 	Bell's Direct Routes
	JAPAN—OSAKA	 	0.061	 	Bell's Direct Routes
	JAPAN—TOKYO CENTRAL	 	0.061	 	Bell's Direct Routes
	JAPAN—OTHER	 	0.061	 	Bell's Direct Routes
	JORDAN	 	—	 	 
	JORDAN—MOBILE	 	0.392	 	 
	JORDAN—AMMAN	 	0.331	 	 
	JORDAN—OTHER	 	0.359	 	 
	KAMPUCHEA	 	0.696	 	 
	KAMPUCHEA—MOBILE	 	0.696	 	 
	KAZAKHSTAN	 	0.241	 	 
	KENYA	 	—	 	 
	KENYA—NAIROBI	 	0.278	 	 
	KENYA—OTHER	 	0.368	 	 
	KIRIBATI	 	2.262	 	 
	NORTH KOREA	 	1.409	 	 
	SOUTH KOREA	 	0.055	 	 
	SOUTH KOREA—MOBILE	 	0.133	 	 
	KUWAIT	 	0.180	 	 
	KUWAIT—MOBILE	 	0.229	 	 
	KYRGYZSTAN	 	0.270	 	 
	LAOS	 	0.696	 	 
	LATVIA	 	0.204	 	 
	LATVIA—MOBILE	 	0.247	 	 
	LEBANON	 	0.243	 	 
	LEBANON—MOBILE	 	0.433	 	 
	LESOTHO	 	0.188	 	 
	LIBERIA	 	0.302	 	 
	LIBYA	 	0.237	 	 
	LIECHTENSTEIN	 	0.066	 	 
	LIECHTENSTEIN—MOBILE	 	0.216	 	 
	LITHUANIA	 	0.261	 	 
	LITHUANIA—MOBILE	 	0.292	 	 
	LUXEMBOURG	 	0.056	 	 
	LUXEMBOURG—MOBILE	 	0.334	 	 
	MACAU	 	0.221	 	 
	MACAU—MOBILE	 	0.221	 	 
	MACEDONIA	 	0.294	 	 
	MACEDONIA—MOBILE	 	0.302	 	 
	MADAGASCAR	 	0.392	 	 
	MADAGASCAR—MOBILE	 	0.458	 	 
	MADAGASCAR—AUDIOTEXT	 	Service Not Available	 	Service Not Available
	MALAWI	 	0.180	 	 
	 	 	 	 	 

33

 

	MALAYSIA	 	—	 	 
	MALAYSIA—MOBILE	 	0.081	 	 
	MALAYSIA—KUALA LUMPUR	 	0.066	 	 
	MALAYSIA—OTHER	 	0.073	 	 
	MALDIVES	 	0.429	 	 
	MALI	 	0.417	 	 
	MALTA	 	0.130	 	 
	MALTA—MOBILE	 	0.176	 	 
	MARIANA ISLANDS	 	0.107	 	 
	MARSHALL ISLANDS	 	0.556	 	 
	MARTINIQUE	 	0.202	 	 
	MAURITANIA	 	0.319	 	 
	MAURITIUS	 	0.442	 	 
	MAYOTTE	 	0.245	 	 
	MEXICO	 	—	 	 
	MEXICO—BAND 1	 	TBD	 	 
	MEXICO—BAND 2	 	TBD	 	 
	MEXICO—GUADALAJARA	 	TBD	 	 
	MEXICO—MEXICO CITY	 	TBD	 	 
	MEXICO—MONTERREY	 	TBD	 	 
	MICRONESIA	 	0.778	 	 
	MOLDOVA	 	0.467	 	 
	MONACO	 	0.093	 	 
	MONACO—MOBILE	 	0.286	 	 
	MONGOLIA	 	0.409	 	 
	MONTSERRAT	 	0.355	 	 
	MOROCCO	 	—	 	 
	MOROCCO—MOBILE	 	0.409	 	 
	MOROCCO—CASABLANCA	 	0.409	 	 
	MOROCCO—FES	 	0.384	 	 
	MOROCCO—RABAT	 	0.409	 	 
	MOROCCO—OTHER	 	0.409	 	 
	MOZAMBIQUE	 	0.302	 	 
	MYANMAR	 	0.548	 	 
	NAMIBIA	 	0.176	 	 
	NAURU	 	1.284	 	 
	NEPAL	 	—	 	 
	NEPAL—KATHMANDU	 	0.229	 	 
	NEPAL—OTHER	 	0.491	 	 
	NETHERLANDS	 	—	 	 
	NETHERLANDS—MOBILE	 	0.346	 	 
	NETHERLANDS—AMSTERDAM	 	0.018	 	Bell's Direct Routes
	NETHERLANDS—OTHER	 	0.018	 	Bell's Direct Routes
	NETHERLANDS ANT.	 	—	 	 
	NETH. ANT.—MOBILE	 	0.311	 	 
	NETH. ANT.—ST. MARTEENS	 	0.148	 	 
	NETH. ANT.—OTHER	 	0.213	 	 
	NETH.ANT.—AUDIOTEXT	 	Service Not Available	 	Service Not Available
	NEW CALEDONIA	 	0.696	 	 
	 	 	 	 	 

34

 

	NEW ZEALAND	 	0.043	 	 
	NEW ZEALAND—MOBILE	 	0.286	 	 
	NICARAGUA	 	0.351	 	 
	NIGER	 	0.335	 	 
	NIGERIA	 	—	 	 
	NIGERIA—LAGOS	 	0.229	 	 
	NIGERIA—OTHER	 	0.409	 	 
	NIUE	 	1.566	 	 
	NIUE—AUDIOTEXT	 	Service Not Available	 	Service Not Available
	NORFOLK	 	0.528	 	 
	NORWAY	 	0.040	 	 
	NORWAY—MOBILE	 	0.229	 	 
	OMAN	 	0.376	 	 
	PAKISTAN	 	—	 	 
	PAKISTAN—MOBILE	 	0.609	 	 
	PAKISTAN—ISLAMABAD	 	0.581	 	 
	PAKISTAN—KARACHI	 	0.531	 	 
	PAKISTAN—LAHORE	 	0.564	 	 
	PAKISTAN—OTHER	 	0.548	 	 
	PALAU	 	1.442	 	 
	PALESTINE	 	0.180	 	 
	PANAMA	 	—	 	 
	PANAMA—MOBILE	 	0.819	 	 
	PANAMA—PANAMA CITY	 	0.233	 	 
	PANAMA—OTHER	 	0.237	 	 
	PAPUA NEW GUINEA	 	0.223	 	 
	PAPUA NEW GUINEA—AUDIOTEXT	 	Service Not Available	 	Service Not Available
	PARAGUAY	 	0.358	 	 
	PERU	 	—	 	 
	PERU—MOBILE	 	0.359	 	 
	PERU—LIMA	 	0.094	 	 
	PERU—OTHER	 	0.196	 	 
	PHILIPPINES	 	—	 	 
	PHILIPPINES—MOBILE	 	0.229	 	 
	PHILIPPINES—MANILA	 	0.164	 	Bell's Direct Routes
	PHILIPPINES—OTHER	 	0.164	 	Bell's Direct Routes
	POLAND	 	—	 	 
	POLAND—MOBILE	 	0.237	 	 
	POLAND—WARSAW	 	0.080	 	 
	POLAND—OTHER	 	0.097	 	 
	PORTUGAL	 	—	 	 
	PORTUGAL—MOBILE	 	0.359	 	 
	PORTUGAL—AZORES	 	0.055	 	 
	PORTUGAL—LISBON	 	0.053	 	 
	PORTUGAL—OPORTO	 	#N/A	 	breakout removed; will be rated as 'Portugal—Other"
	PORTUGAL—OTHER	 	0.055	 	 
	PUERTO RICO	 	0.067	 	 
	 	 	 	 	 

35

 

	QATAR	 	0.499	 	 
	QATAR—MOBILE	 	0.499	 	 
	REUNION	 	0.138	 	 
	REUNION—MOBILE	 	0.233	 	 
	ROMANIA	 	—	 	 
	ROMANIA—MOBILE	 	0.237	 	 
	ROMANIA—BUCHAREST	 	0.102	 	 
	ROMANIA—OTHER	 	0.218	 	 
	RUSSIA	 	—	 	 
	RUSSIA—CHECHNIA	 	0.213	 	 
	RUSSIA—KHABAROVSK	 	0.163	 	 
	RUSSIA—MOSCOW CENTRAL	 	0.061	 	 
	RUSSIA—MOSCOW SUBURB	 	0.141	 	 
	RUSSIA—ST. PETERSBURG	 	0.083	 	 
	RUSSIA—OTHER	 	0.153	 	 
	RUSSIA—OVERLAY ADMINS	 	Service Not Available	 	Service Not Available
	RWANDA	 	0.290	 	 
	SAN MARINO	 	0.059	 	 
	SAN MARINO—AUDIOTEXT	 	Service Not Available	 	Service Not Available
	SAO TOME AND PRINCIP	 	1.072	 	 
	SAUDI ARABIA	 	—	 	 
	SAUDI ARABIA—MOBILE	 	0.392	 	 
	SAUDI ARABIA—JEDDAH	 	0.279	 	 
	SAUDI ARABIA—RIYADH	 	0.319	 	 
	SAUDI ARABIA—OTHER	 	0.379	 	 
	SENEGAL	 	0.387	 	 
	SERBIA	 	0.237	 	 
	SEYCHELLES	 	0.368	 	 
	SIERRA LEONE	 	0.597	 	 
	SIERRA LEONE—AUDIOTEXT	 	Service Not Available	 	Service Not Available
	SINGAPORE	 	0.044	 	 
	SINGAPORE—MOBILE	 	0.044	 	 
	SLOVAK REPUBLIC	 	—	 	 
	SLOVAK REPUBLIC—MOBILE	 	0.294	 	 
	SLOVAK REPUBLIC—BRATISLAVA	 	0.138	 	 
	SLOVAK REPUBLIC—OTHER	 	0.139	 	 
	SLOVENIA	 	0.177	 	 
	SLOVENIA—MOBILE	 	0.224	 	 
	SOLOMON ISLANDS	 	1.089	 	 
	SOLOMON ISLANDS—AUDIOTEXT	 	Service Not Available	 	Service Not Available
	SOMALI REP.	 	0.696	 	 
	SOUTH AFRICA REP	 	—	 	 
	SOUTH AFRICA—MOBILE	 	0.156	 	 
	SOUTH AFRICA—CAPE TOWN	 	0.156	 	 
	SOUTH AFRICA—JOHANNESBURG	 	0.156	 	 
	SOUTH AFRICA—OTHER	 	0.156	 	 
	SPAIN	 	—	 	 
	SPAIN—MOBILE	 	0.291	 	 
	SPAIN—BARCELONA	 	0.045	 	 
	 	 	 	 	 

36

 

	SPAIN—CANARY ISLANDS	 	0.048	 	 
	SPAIN—MADRID	 	0.045	 	 
	SPAIN—OTHER	 	0.045	 	 
	SRI LANKA	 	0.433	 	 
	SRI LANKA—MOBILE	 	0.433	 	 
	ST—HELENA	 	0.663	 	 
	ST. CHRISTOPHER	 	0.298	 	 
	ST. LUCIA	 	0.315	 	 
	ST. PIERRE & MIQ	 	0.166	 	 
	ST. VINCENT	 	0.335	 	 
	SUDAN	 	0.376	 	 
	SURINAME	 	0.646	 	 
	SWAZILAND	 	0.148	 	 
	SWEDEN	 	0.038	 	 
	SWEDEN—MOBILE	 	0.286	 	 
	SWITZERLAND	 	—	 	 
	SWITZERLAND—MOBILE	 	0.301	 	 
	SWITZERLAND—GENEVA	 	0.018	 	Bell's Direct Routes
	SWITZERLAND—ZURICH	 	0.018	 	Bell's Direct Routes
	SWITZERLAND—OTHER	 	0.018	 	Bell's Direct Routes
	SYRIA	 	0.564	 	 
	TAIWAN	 	—	 	 
	TAIWAN—MOBILE	 	0.164	 	 
	TAIWAN—TAIPEI	 	0.055	 	 
	TAIWAN—OTHER	 	0.070	 	 
	TADJIKISTAN	 	0.319	 	 
	TANZANIA	 	—	 	 
	TANZANIA—DARES SALAAM	 	0.319	 	 
	TANZANIA—OTHER	 	0.425	 	 
	THAILAND	 	—	 	 
	THAILAND—MOBILE	 	0.245	 	 
	THAILAND—BANGKOK	 	0.125	 	 
	THAILAND—OTHER	 	0.237	 	 
	THURAYA	 	1.393	 	 
	TOGO	 	0.458	 	 
	TOKELAU	 	Service Not Available	 	Service Not Available
	TONGA	 	0.867	 	 
	TONGA—AUDIOTEXT	 	Service Not Available	 	Service Not Available
	TRINIDAD AND TOB.	 	0.270	 	Bell's Direct Routes
	TUNISIA	 	0.330	 	 
	TURKEY	 	—	 	 
	TURKEY—MOBILE	 	0.294	 	 
	TURKEY—ISTANBUL	 	0.125	 	 
	TURKEY—OTHER	 	0.270	 	 
	TURKMENISTAN	 	0.296	 	 
	TURKS & CAICOS ISLAN	 	0.290	 	 
	TUVALU	 	1.015	 	 
	TUVALU—AUDIOTEXT	 	Service Not Available	 	Service Not Available
	UGANDA	 	0.226	 	 
	 	 	 	 	 

37

 

	UKRAINE	 	—	 	 
	UKRAINE—DNIPROPETROVSK	 	0.172	 	 
	UKRAINE—DONETSK	 	0.196	 	 
	UKRAINE—KHARKIV	 	0.172	 	 
	UKRAINE—KIEV	 	0.117	 	 
	UKRAINE—LVIV	 	0.156	 	 
	UKRAINE—ODESSA	 	0.172	 	 
	UKRAINE—OTHER	 	0.211	 	 
	UNITED ARAB EM.	 	0.278	 	 
	UNITED ARAB EM.—MOBILE	 	0.302	 	 
	UNITED KINGDOM	 	—	 	 
	UNITED KINGDOM—MOBILE	 	0.355	 	 
	UNITED KINGDOM—LONDON	 	0.018	 	Bell's Direct Routes
	UNITED KINGDOM—OTHER	 	0.018	 	Bell's Direct Routes
	URUGUAY	 	0.315	 	 
	UZBEKISTAN	 	0.224	 	 
	VANUATU	 	0.909	 	 
	VANUATU—AUDIOTEXT	 	Service Not Available	 	Service Not Available
	VENEZUELA	 	—	 	 
	VENEZUELA—MOBILE	 	0.335	 	 
	VENEZUELA—CARACAS	 	0.148	 	 
	VENEZUELA—OTHER	 	0.274	 	 
	VIET NAM	 	—	 	 
	VIET NAM—MOBILE	 	1.081	 	 
	VIET NAM—HO CHI MINH	 	1.015	 	 
	VIET NAM—OTHER	 	1.015	 	 
	VIRGIN ISL. US	 	0.059	 	 
	VIRGIN ISLANDS BR.	 	0.205	 	 
	WALLIS—FUTUNA	 	2.923	 	 
	WESTERN SAMOA	 	0.847	 	 
	YEMEN	 	0.761	 	 
	ZAIRE	 	0.294	 	 
	ZAIRE—MOBILE	 	0.392	 	 
	ZAMBIA	 	0.213	 	 
	ZIMBABWE	 	0.105	 	 

38

  

 
 

SCHEDULE 3(b)    
    
    MFSP Pricing—Globe Internet (IP Transit)    
    

GLOBE INTERNET (IP TRANSIT) ASSUMPTIONS  

	•
	MFSP
pricing will be updated on a periodic basis and will be effective upon 5-business days notice for the following components:

	a)
	Transport
Charge

	b)
	Co-Location
(if applicab1e)

	c)
	Globe
Internet (IP Transit) price

	•
	MFSP
Pricing for North American ports will be the lower of:

	i)
	Best
price offered in Canada or,

	ii)
	Best
price offered in the United States + a transport charge (if applicable). 

Note: A transport charge will not be applicable if connection is made in the USA.

	•
	North
American Transport Charge to be at Teleglobe's cost.

	•
	MFSP
pricing for international services will be handled on an individual case basis

	•
	and
will be based on Teleglobe's "best available pricing".

	•
	For
burstable services a minimum 30% utilization charge per port, is applied each

	•
	month.

	•
	MFSP
pricing to apply to existing and new services as of July 1, 2001.

	•
	All
prices in US$. 

a)    North American Transport Charge MFSP Rates (as of July 1, 2001)  

$50/Mbps
transport charge to USA 

Note: Transport Charge is based on current cost to connect cross-border at cost.

b)    [North American Globe Internet (IP Transit) MFSP Rates]  

	Country
 
	 	Fixed / Burstable
	 	Port Speed
	 	US$

(as of July 1, 2001)

	Canada	 	Fixed	 	T1 (1.544 Mbps	)	$	400
	 	 	Fixed	 	10 M Ethernet	 	$	2,500
	 	 	Fixed	 	DS3	 	$	11,250
	 	 	Fixed	 	100 M Ethernet	 	$	25,000
	 	 	Fixed	 	OC3	 	$	38,750
	 	 	Fixed	 	OC12	 	$	155,500
	 	 	Burstable	 	All port speeds	 	$	250/Mbps
	United States	 	Fixed	 	T1 (1.544 Mbps	)	$	400
	 	 	Fixed	 	10 M Ethernet	 	$	2,000
	 	 	Fixed	 	DS3	 	$	9,000
	 	 	Fixed	 	100 M Ethernet	 	$	20,000
	 	 	Fixed	 	OC3	 	$	31,000
	 	 	Fixed	 	OC12	 	$	124,400
	 	 	Burstable	 	All port speeds	 	$	200/Mbps

39

 
 
 

SCHEDULE 3(c)    
    
    MFSP Pricing—GIobeAccess64 (ISDN) Outbound    
    
    (Canadian Origination)    
    

GLOBE ACESS64 (ISDN) OUTBOUND (CANADIAN ORIGINATION) ASSUMPTIONS  

	•
	MFSP
pricing for ISDN will be updated on a periodic basis and will be effective upon 5-business days notice.

	•
	All
rates in CA$.

	•
	Calls
to be measured in one-minute increments, rounding up to the next highest minute, with all billing and rates expressed on a per minute basis.

	•
	Rates
will be based on "Best Available Rate" with the exception of traffic to countries identified in Table 1 routed from Bell or Bell Nexxia, as the case may be, directly
to Teleglobe which will be the lesser of

	a)
	the
rate identified in Table 1; or

	b)
	Teleglobe's
"Best Available Rate" 

Table
1: 

	Country
 
	 	Rate / Minute CA$

(as of July 1, 2001)
	 	Surcharge / Call CA$

(as of July 1, 2001)

	France	 	$	0.253	 	$	0.00
	Italy	 	 	IDDD rate from Schedule 3(a)	 	$	0.00
	Netherlands	 	 	IDDD rate from Schedule 3(a)	 	$	0.00
	Switzerland	 	 	IDDD rate from Schedule 3(a)	 	$	0.00
	United Kingdom	 	$	0.078	 	$	0.00

Note: The rates in Table 1 may be reviewed upon mutual agreement of both Parties.

40

 
 
 

SCHEDULE 3(d)
  MFSP Pricing—ITFS/UIFN Inbound    
    

ITFS/UIFN INBOUND ASSUMPTIONS  

	•
	MFSP
pricing for ITFS/UIFN will be updated on a periodic basis and will be effective upon 5-business days notice.

	•
	All
rates in CA$.

	•
	Calls
to be measured in 6 second increments, rounding up to next highest 6 seconds,

	•
	with
all billing and rates expressed on a per minute basis. 

ITFS/UIFN
MFSP RATES 

	Origination
 
	 	Rate / Minute CA$

(as of July 9, 2001)

	ANGUILLA	 	0.466
	ANGUILLA	 	0.466
	ANTIGUA	 	0.850
	ARGENTINA	 	0.251
	AUSTRALIA	 	0.117
	AUSTRIA	 	0.200
	BAHAMAS	 	0.376
	BAHRAIN	 	0.615
	BARBADOS	 	0.693
	BELGIUM	 	0.117
	BERMUDA	 	0.198
	BRAZIL	 	0.273
	CANADA	 	0.088
	CAYMAN	 	0.295
	CHILE	 	0.343
	CHINA	 	0.249
	COLOMBIA	 	0.244
	COSTA RICA	 	0.656
	DENMARK	 	0.117
	DOMINICA	 	0.781
	DOMINICAN REP.	 	0.195
	FIJI	 	1.149
	FINLAND	 	0.293
	FRANCE	 	0.117
	GERMANY	 	0.117
	GREECE	 	0.195
	GRENADA	 	0.650
	HONG KONG	 	0.117
	HUNGARY	 	0.293
	ICELAND	 	0.366
	INDONESIA	 	0.366
	IRISH REP	 	0.147
	ISRAEL	 	0.174
	ITALY	 	0.244
	JAMAICA	 	0.764
	JAPAN	 	0.445
	 	 	 

41

 

	SOUTH KOREA	 	0.150
	LUXEMBOURG	 	0.178
	MACAU	 	0.581
	MALAYSIA	 	0.250
	MEXICO	 	0.491
	MONTSERRAT	 	0.796
	NETHERLANDS	 	0.117
	NEW ZEALAND	 	0.117
	NORWAY	 	0.117
	PERU	 	0.703
	PHILIPPINES	 	0.739
	POLAND	 	0.391
	PORTUGAL	 	0.195
	PUERTO RICO	 	0.239
	RUSSIA	 	0.342
	SINGAPORE	 	0.242
	SAUDI ARABIA	 	1.480
	SOUTH AFRICA REP	 	0.366
	SPAIN	 	0.295
	ST. CHRISTOPHER	 	0.843
	ST. LUCIA	 	0.977
	ST. VINCENT	 	0.686
	SWEDEN	 	0.117
	SWITZERLAND	 	0.291
	TAIWAN	 	0.147
	THAILAND	 	0.382
	TRINIDAD AND TOB.	 	0.740
	TURKEY	 	0.342
	TURKS & CAICOS ISLAN	 	0.863
	UNITED KINGDOM	 	0.088
	UNITED ARAB EM.	 	0.440
	USA	 	0.137
	VENEZUELA	 	0.313
	VIRGIN ISLANDS BR.	 	0.767
	VIRGIN ISLANDS (US)	 	0.107

42

 
 
 

SCHEDULE 3(e)    
    
    MFSP Pricing—Switch Minute Terminations in Canada    
    

SWITCH MINUTE TERMINATIONS (IN CANADA) ASSUMPTIONS  

	•
	MFSP
pricing will be updated on a periodic basis and effective upon 5-business days

	•
	notice.

	•
	All
rates in CA$.

	•
	All
billing and rates expressed on a per minute basis. 

Switch Minute Terminations (in Canada) MFSP Rates (as of July 1, 2001)  

	NPA
 
	 	Rate / Minute CA$

(as of July 1, 2001)

	204	 	0.0128
	250	 	0.0155
	289	 	0.0127
	306	 	0.0219
	403	 	0.0155
	416	 	0.0127
	418	 	0.0127
	450	 	0.0127
	506	 	0.0136
	514	 	0.0127
	519	 	0.0127
	604	 	0.0155
	613	 	0.0127
	647	 	0.0127
	705	 	0.0127
	709	 	0.0286
	780	 	0.0155
	807	 	0.0127
	819	 	0.0127
	867	 	0.1650
	902	 	0.0164
	905	 	0.0127

	*
	For traffic volumes above 3% to Independent Companies, a surcharge of $0.05 (CA$) per minute will apply.

Operator Handled Sent Paid Switch Minute Terminations (in Canada)  

An
average switched termination rate applicable to Operator Handled Sent Paid Inbound Traffic will be established every quarter by Bell Canada based on Operator Handled traffic terminating to Canadian
NPA's during the 3 month interval and the Switched Minute Termination rates identified above. The applicable average switched termination rate is determined by the actual call date the Operator
Handled Sent Paid inbound call transpired. 

43

   FIRST AMENDMENT TO

MASTER WHOLESALE PRICING AND SERVICES COORDINATING AGREEMENT  

        THIS FIRST AMENDMENT TO THE MASTER WHOLESALE PRICING AND SERVICES COORDINATING AGREEMENT (this "First Amendment")
dated June 12, 2003, with effect as to certain agreements contained herein as of the first day of April, 2003 (the "Effective Date") is made 

BETWEEN:  

        TELEGLOBE CANADA ULC, an amalgamated unlimited liability company amalgamated under the laws of the Province of
Nova Scotia, having an office at 1000 rue de la Gauchetiere, Montreal, Quebec, Canada ("Teleglobe"); 

AND:  

        BELL CANADA, a Canadian corporation incorporated under the laws of Canada having an office at 483 Bay Street,
Floor 6N, Toronto, Ontario, Canada ("Bell Canada"); 

RECITALS:  

        WHEREAS Teleglobe Inc., Bell Canada and BCE Nexxia Inc. ("Nexxia") were parties to a Master
Wholesale Pricing and Services Coordinating Agreement made as of January 1, 2001 (the "Master Agreement"); and 

        WHEREAS on May 15, 2002 Teleglobe Inc., together with certain of its affiliates, filed for and obtained protection from
their creditors (the "Canadian Insolvency Proceedings") under the Companies'
Creditors Arrangement Act R.S.C, 1985, c. C-36 (the "CCAA") pursuant to an order of the Ontario Superior Court of Justice (the "CCAA Court"); and 

        WHEREAS in the course of the Canadian Insolvency Proceedings, and pursuant to a purchase agreement made and entered into as of
September 18, 2002 between TLGB Acquisition LLC as purchaser (the "Purchaser"), Teleglobe Inc. and Teleglobe USA Inc., together with such other parties enumerated therein, as
amended, (the "Purchase Agreement"), Teleglobe Inc. agreed to assign the Master Agreement to the Purchaser (or an affiliate thereof, as contemplated by the Purchase Agreement); and 

        WHEREAS pursuant to the Canadian Insolvency Proceedings, on October 2, 2002, Teleglobe Inc. obtained an order from the CCAA
Court approving and authorizing, inter alia, the Purchase Agreement and the transactions contemplated thereby, on the terms and conditions contained in
such order; and 

        WHEREAS pursuant to the Canadian Insolvency Proceedings, on October 23, 2002, Teleglobe Inc. obtained the Bell Order, which,
subject to and conditional upon Closing, authorized and entitled Teleglobe Inc. to assign, transfer and deliver to the Purchaser (or an affiliate thereof, as contemplated by the Purchase
Agreement), all of Teleglobe Inc.'s rights, title and interest in the Master Agreement (among other agreements), on the terms and subject to the conditions contained in the Bell Order
including, without limitation, that the Purchaser (or an affiliate thereof, as contemplated by the Purchase Agreement) assume all covenants, obligations, conditions, liabilities, provisos and other
commitments of Teleglobe Inc. under the Master Agreement (among other agreements), and that the Purchaser be otherwise subject to all the requirements of Teleglobe Inc. therein arising,
as if the Purchaser were an original signatory thereto; and 

        WHEREAS Nexxia amalgamated with Bell Canada on March 31, 2003 and continued as Bell Canada; and 

        WHEREAS the Purchaser designated its affiliate (as contemplated by the Purchase Agreement), Teleglobe Canada II ULC, as the entity to
which contracts, assets and the business of Teleglobe Inc. would be transferred, pursuant to the terms of the Purchase Agreement; and 

44

 

        WHEREAS the transaction as approved by the CCAA Court pursuant to the orders described, and described in the Purchase Agreement was closed
on May 30, 2003, resulting in, inter alia, the assignment of, inter alia, the Master Agreement by
Teleglobe Inc. to Teleglobe; and 

        WHEREAS immediately following completion of the Closing on May 30, 2003, Teleglobe Canada II ULC amalgamated with Teleglobe Canada
ULC, to form Teleglobe, an amalgamated unlimited liability company amalgamated pursuant to the laws of the Province of Nova Scotia; and 

        WHEREAS as a consequence thereof, the Master Agreement is presently an agreement pursuant to which Teleglobe is responsible for the
covenants, obligations, conditions, liabilities, provisos and other commitments of Teleglobe Inc. and Teleglobe is otherwise subject to all the requirements of Teleglobe Inc. therein
arising as if Teleglobe were an original signatory thereto; and 

        WHEREAS the Parties desire to amend the Master Agreement in accordance with the terms and conditions set forth herein. 

        NOW THEREFORE, THIS FIRST AMENDMENT WITNESSETH that in consideration of the covenants and agreements hereinafter contained, and for other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by each of the Parties hereto, the Parties hereto covenant and agree as follows: 

 INTERPRETATION AND DEFINITIONS  

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

In
this First Amendment, including its recitals, unless otherwise defined or unless the context otherwise requires, the following terms shall have the following meanings: 

"Allocation" means the allocated dollar amount of either Right to Match Right or Flex Right of the Parties determined pursuant to Sections 5.1.1(a) and
5.2.1(b) hereof; 

"ASR" means Answer Seizure Ratio as defined by the International Telecommunication Union; 

"Bell Order" means the CCAA Court Order dated October 23, 2002; 

"Buyer" means either Bell Canada or Teleglobe, as the case may be, as purchaser or intended purchaser of the Teleglobe Services, the Bell Services or
Competing Services, as the case may be; 

"Closing" has the meaning set out in the Purchase Agreement; 

"Competing Provider" means a provider of a Competing Service; 

"Competing Service" means any telecommunications product or service, that is the same as or substantially similar to either a Teleglobe Service or Bell
Service, or is otherwise competitive with either a Teleglobe Service or Bell Service, in circumstances where and to the extent that any such Teleglobe Service or Bell Service is subject to any
exclusivity requirements, Right to Match, Flex, or a minimum volume commitment, as contemplated in the Master Agreement as amended pursuant hereto; 

"Content Provider" means a Person that creates information, educational or entertainment content for the Internet; 

"Convergia Agreement" means the agreement between Bell Canada and Convergia Inc. dated April 16, 2002; 

45

 

"Convergia Traffic" means the IDDD Outbound Services traffic, but only as it relates to mobile and Cuba terminating traffic, generated by Bell Canada
pursuant to the Convergia Agreement, provided that in 2003 such traffic shall exclude mobile traffic; 

"Flex" means the right of either Bell Canada or Teleglobe, as the case may be, as Buyer, to obtain Competing Services on terms and subject to conditions
determined in its sole discretion to be acceptable to it and in respect of which, notwithstanding any provision of the Master Agreement to the contrary, no obligation to purchase from Supplier or
Right to Match shall apply; 

"Home Country Direct Service" means the access service provided by Bell Canada to Teleglobe in order for Teleglobe to offer to foreign carriers the
underlying services associated with the provisioning by such foreign carriers of services similar in functionality to the Canada Direct Service; 

"IDDD Outbound Services" has the meaning set out in Section 5.2.1(b) hereof; 

"IP Transit Monthly Volume Commitment" has the meaning set out in Section 5.2.1(a) hereof; 

"Off-Net Delay" means the time interval required for IP Transit traffic to travel from Bell Canada's directly connected serial interface
with the Teleglobe network to Teleglobe's directly connected serial interface with a Tier-I Peer; 

"On-Net Traffic" has the meaning set out in Section 5.2.1(a)(ii)(1) hereof; 

"Parties" means Bell Canada and Teleglobe; 

"Party" means either Bell Canada, or Teleglobe as the context requires; 

"Pre-determined Connection Points" means the following connection points: Chicago, Montreal, New York, Newark, Seattle, Toronto or
Vancouver; 

"Required Information" means the information to be provided, in writing, by the Buyer to the Supplier pursuant to the exercise of a Right to Match of
Supplier, comprising: 

	(i)
	in
the case of the services set out in Sections 5.1.1(b) and 5.2.1 (c) hereof:

	(a)
	technical
description (e.g. locations A-end/ Z-end and Customer premise equipment required);

	(b)
	SLAs/SLOs;

	(c)
	price;

	(d)
	term/termination;

	(e)
	delivery
interval(s);

	(f)
	any
penalty provisions for failure to meet requirements for the service described herein; and

	(g)
	the
maximum allowed response time for RFQs.

	(ii)
	in
the case of Switch Minute Terminations in Canada and IDDD Outbound Services:

	(a)
	traffic
volumes, which for the avoidance of doubt, shall be an estimated amount of traffic for a fixed period of time;

	(b)
	destination
definition (i.e., the numbering ranges and destination codes that comprise a destination);

	(c)
	price;

	(d)
	required
notice period for rate changes;

	(e)
	term
commitments; 

46

 

	(f)
	delivery
(an adjustment shall be required to reflect any delivery points other than via Pre-determined Connection Points);

	(g)
	quality
(target ASR, allowable variances, and conditions under which Buyer will determine that the quality requirements have not been achieved);

	(h)
	traffic
grooming (i.e., routing specifications other than a representative distribution of traffic available to be sent to all carriers);

	(i)
	any
traffic restrictions or limitations within a destination;

	(j)
	details
of any return traffic arrangements, where the applicable rates are contingent upon return traffic, and how such return traffic has been reflected in the "price";
and

	(k)
	type
of route (i.e. Full, Partial, Bilateral or Partial-Bilateral); 

"Right to Match" or "Right to Match Right" means the
right of either Bell Canada or Teleglobe, as Supplier, to choose whether or not to contract on the terms of an offer presented to Supplier by Buyer in accordance with, and subject to the terms of,
Sections 5.1.1(a), 5.1.1(b), 5.2.1(b), 5.2.1(c) and Section 7 hereof; 

"Rights" means, collectively, the Right to Match and Flex; 

"Supplier" means either Bell Canada or Teleglobe, as the case may be, as supplier or, prospective supplier, respectively of the Bell Services or
Teleglobe Services; 

"Teleglobe Potential IDDD Customers" has the meaning set out in Section 5.1.2(b) hereof; 

"Teleglobe Potential IP Customers" has the meaning set out in Section 5.1.2(a) hereof; 

"Tier-1 Peer" means the following IP access providers: *** (only when direct connectivity is established and continues between *** and
Teleglobe) or as modified by the Parties from time to time upon mutual agreement; 

"2003 Excluded Traffic" means the Bell Canada IDDD Outbound Services generated traffic in January and February 2003 as a result of special
traffic promotions, and the Convergia Traffic; 

"2002 Excluded Traffic" means the Bell Canada IDDD Outbound Services generated traffic in November and December 2002 as a result of special
traffic promotions, and the Convergia Traffic; and 

"Wholesale Traffic" means the IDDD Outbound Services traffic originating from Bell Canada's Wholesale Customers connected directly to a Teleglobe switch
under a contract between Bell Canada and such Wholesale Customers, unless otherwise agreed by the Parties in writing. 

	***
	Portions
hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 406
of the Securities Act of 1933, as amended. 

47

 

2.     RETROACTIVE EFFECT OF THE FIRST AMENDMENT  

	

	Retroactivity.    The Parties agree that notwithstanding that the Closing occurred on
May 30, 2003, the amendments to the Master Agreement contemplated by this First Amendment shall have effect, to the extent contemplated herein, as at and from the Effective Date. 

3.     MASTER AGREEMENT/COURT ORDERS  

	

	Master Agreement; Court Orders.    For the avoidance of doubt the Master Agreement, the Bell Order
and all collateral and related orders remain in full force and effect. The Master Agreement is only modified in so far as this First Amendment specifically provides, including without limitation,
extensions of Initial Term, Flex, Rights to Match, non-exclusivity and pricing principles. Except as amended herein, all of the terms and conditions of the Master Agreement shall remain in
full force and effect. 

4.     TERM AND TERMINATION  

	4.1
	Term and Termination.    Article 2.1 of the Master Agreement is hereby amended to extend the Initial Term of the
Master Agreement until December 31, 2007 (at which time the Master Agreement and the First Amendment shall terminate) with respect to:

	(a)
	Switch
Minute Terminations in Canada;

	(b)
	IP
Transit Services;

	(c)
	Canada
Direct Services;

	(d)
	Operator
Handled (OH) services;

	(e)
	ITFS/UIFN
services;

	(f)
	IDDD;
and

	(g)
	Home
Country Direct.

	4.2
	Idem.    For IPL Services, ISDN Services, and all other Services except those specifically referenced in Section 4.1
above, the Master Agreement and this First Amendment shall terminate on December 31, 2005.

	4.3
	Idem.    Article 2.1 of the Master Agreement is hereby further amended by deleting the second sentence thereof.

5.     OBLIGATIONS OF THE PARTIES  

	5.1
	Amendment of Article 3.3 of Master Agreement.    Article 3.3 of the Master Agreement is hereby amended by
deleting the first sentence, and replacing it with Sections 5.1.1 and 5.1.2 below:

	5.1.1
	Teleglobe Flex; Bell Right to Match.    Subject to Article 3.6 of the Master Agreement, Teleglobe shall fulfill,
satisfy and discharge all of its requirements for the delivery of telecommunications services in the Territory exclusively with and from Bell Canada through the delivery by Bell Canada of the Bell
Services, unless Bell Canada declines in writing to supply any of such Bell Services; provided that, Teleglobe shall no longer be bound or restricted by any exclusivity obligation contained in the
Master Agreement (as amended by the First Amendment) only to the extent it is granted Flex Rights and Right to Match Rights as contemplated by the terms set out below.

	(a)
	Teleglobe Allocations.    Teleglobe shall be subject to the followings rights and obligations with respect to Switch Minute
Terminations in Canada:

	(i)
	in
2003, Teleglobe may obtain up to *** of its required volume of Switch Minute Terminations in Canada by way of exercising its Flex Right, and up to *** of its required volume of
Switch Minute Terminations in Canada shall be subject to a Bell Canada Right to Match, pursuant to the calculation set forth below in this Section 5.1.1(a); 

	***
	Portions
hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 406
of the Securities Act of 1933, as amended. 

48

 

	(ii)
	in
2004, Teleglobe may obtain up to *** of its required volume of Switch Minute Terminations in Canada by way of exercising its Flex Right, and up to *** of its required volume of
Switch Minute Terminations in Canada shall be subject to a Bell Canada Right to Match, pursuant to the calculation set forth below in this Section 5.1.1(a);

	(iii)
	in
2005, Teleglobe may obtain up to *** of its required volume of Switch Minute Terminations in Canada by way of exercising its Flex Right, and up to *** of its required volume of
Switch Minute Terminations in Canada shall be subject to a Bell Canada Right to Match, pursuant to the calculation set forth below in this Section 5.1.1(a);

	(iv)
	in
2006, Teleglobe shall route a minimum of *** of its required volume of Switch Minute Terminations in Canada to Bell Canada, and *** of its required volume of Switch Minute
Terminations in Canada shall be subject to a Bell Canada Right to Match, pursuant to the calculation set forth below in this Section 5.1.1(a); and

	(v)
	in
2007, Teleglobe shall route a minimum of *** of its required volume of Switch Minute Terminations in Canada to Bell Canada, and *** of its required volume of Switch Minute
Terminations in Canada shall be subject to a Bell Canada Right to Match, pursuant to the calculation set forth below in this Section 5.1.1(a).

	

	Determination of Allocations.    The Flex Right and Right to Match Allocations contemplated in
this Section 5.1.1(a) shall be determined as follows. The required volume of Switch Minute Terminations in Canada for 2003 shall be an amount expressed in dollars, equal to the aggregate sum of
the products of the total volume of Switch Minute Terminations in Canada for each route purchased by Teleglobe from Bell Canada in 2002, multiplied by the applicable rates established and in effect on
January 1, 2003 on a route by route basis. The required volume of Switch Minute Terminations in Canada for subsequent years (for the purpose of determining the Flex Right and Right to Match
Right Allocations for such subsequent years) shall be an amount, expressed in dollars, established, on an annual basis, on the first day of each such subsequent calendar year (in this
Section 5.1.1(a) "Adjustment Date") and be equal to the aggregate sum of the products of the total volume of the Switch Minute Terminations in Canada for each route during the last calendar
year preceding the Adjustment Date (in this Section 5.1.1(a) "Base Year") multiplied by the average rates applicable during the months of November and December of the Base Year. For avoidance
of doubt, the Parties agree that the required volume of Switch Minute Terminations in Canada for the purposes of each Base Year, shall include only the traffic routed to Bell Canada and Bell
West Inc., together with the traffic routed by Teleglobe to Competing Providers on a Flex Right or Right to Match Right basis. 

	***
	Portions
hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 406
of the Securities Act of 1933, as amended. 

49

 

	

	Rights: Excesses and Shortfalls.    Subject to the terms and conditions set forth in this
paragraph, Teleglobe agrees it shall not exceed its Allocation in each year. Commencing on January 1, 2004, in any given month thereafter, Teleglobe shall not exercise more than (i) 133%
of its average monthly Right to Match Right and Flex Right Allocation, calculated on an aggregated basis, nor (ii) more than 150% of each of its average monthly Allocations, such average
monthly Rights to be calculated based on the annual Flex Right and Right to Match Right Allocations (in aggregate with respect to (i) and separately with respect to (ii)) set forth above,
divided by twelve months. For greater certainty, however, the Parties agree that the foregoing restrictions related to Teleglobe exceeding its Allocation shall not apply to its exercise of the Rights
during 2003. Where Teleglobe exercises any of the Rights, in any calendar year, in excess of the Teleglobe Allocation or fails, on the other hand, to use the Rights up to the Teleglobe Allocation,
such excess or shortfall, may be carried forward as follows: (i) in the case of a shortfall in the exercise of the Rights, a maximum of five (5%) percent for each of the Right to Match Right
Allocation and Flex Right Allocation in a given year shall be added to the Right to Match Allocation or the Flex Right Allocation, as the case may be, in the calendar year following the calendar year
where such shortfall occurred; and (ii) in the case of any excess in the exercise of the Rights, a maximum of five (5%) percent for each of the Right to Match Right Allocation and Flex Right
Allocation in a given year shall be debited on a dollar for dollar basis from the respective Rights in the calendar year following the calendar year where such excess use occurred, provided that
Teleglobe shall have used commercially reasonable efforts to exercise the Rights at the Teleglobe Allocation in each calendar year. In addition, the Parties further agree that should Teleglobe
exercise any of the Rights, in any calendar year, in excess of 105% ("Excess Amount") of each of the Right to Match Right and Flex Right Allocation, respectively, in a given year, such excess shall be
debited from Teleglobe's Right to Match Right and/or Flex Right Allocation, as the case may be, for the following year in an amount equal to twice the Excess Amount.

	

	Debiting of Allocations.    The respective Flex and Right to Match Allocations shall be debited by
deducting amounts expressed in dollars equal to the product of the volume of Switch Minute Terminations in Canada utilized by Teleglobe on a Flex and Right to Match basis multiplied by the rates used
in the determination of the Flex Right or Right to Match Right Allocation as set forth in Section 5.1.1(a) above (i.e., rates in effect on January 1,2003 and the average applicable rates
in effect during the months of November and December of each Base Year for subsequent years), on a route by route basis.

	(b)
	Right to Match on Other Services.    Teleglobe shall, from the Effective Date, be entitled to obtain Competing Services, as
the same relate to private line services, such as network circuit and local loop facilities in the Territory (including for example, BandWidth Select, Megalink) as well as for Cross Border Facilities
and Network Facilities, subject to Bell Canada's Right to Match, in all instances, for such Teleglobe requirements; provided that with respect to Cross Border Facilities and Network Facilities, the
pricing principles set out in the Master Agreement shall continue to apply. For greater certainty, Bell Canada's Right to Match pursuant to this Section 5.1.1(b) shall not result in debiting of
Bell Canada's Right to Match Allocation.

	5.1.2
	Teleglobe Access to Canadian Market.    Teleglobe shall not directly or indirectly promote, market or sell any
telecommunications services to Customers in the Territory, either on a retail or wholesale basis, other than to Bell Canada; provided that Teleglobe shall no longer be bound, from May 15, 2003
and thereafter, by such restriction, but only to the extent set forth below. 

50

 

	(a)
	IP Transit Potential Customers.    With respect to IP Transit Services, Teleglobe shall be entitled to promote, market and
sell, on a non-exclusive basis, in the Territory, Teleglobe's IP Transit Services solely to the entities listed below (the "Teleglobe Potential IP Customers"), on the following terms and
conditions:

	(i)
	***
and *** and to that end Bell Canada consents to Teleglobe executing, after the date of execution of the First Amendment, with *** and ***, IP Transit Services agreements with ***
and ***, provided that Teleglobe shall not, during the term of any IP transit related agreements, in force and effect at the Effective Date, between Bell Canada and *** and ***, respectively, (the
"Bell Agreements"), induce either *** or *** to terminate their respective Bell Agreement early or breach their respective Bell Agreement, or conduct itself in a manner which would interfere with Bell
Canada's rights thereunder, or the management of the Bell Agreements, including without limitation, a reduction in the monthly volume commitment of IP traffic routed by *** and *** to Teleglobe under
the Bell Agreement with Bell Canada as of the Effective Date from *** and ***. Teleglobe may support Bell Canada in its management of the Bell Agreements where requested by *** and/or *** by directly
interfacing with *** and/or *** for certain functions, subject to Bell Canada's consent, (which consent shall not be unreasonably withheld) and further provided that any action taken by Teleglobe in
supporting Bell Canada shall not impair revenue recognition by Bell Canada under Canadian GAAP, in respect of such Bell Agreements. 

In
addition, Teleglobe hereby agrees, from the Effective Date: 

	(1)
	until
March 1, 2004, to charge Bell Canada a rate of *** per Mbps for all *** IP transit related traffic sent to Teleglobe under the Bell Agreement with ***; and

	(2)
	until
October 31, 2003, to charge Bell Canada a rate of *** per Mbps for all *** IP transit related traffic sent to Teleglobe under the Bell Agreement with ***. 

For
avoidance of doubt, from March 1, 2004 with respect to *** and from October 31, 2003 with respect to ***, and thereafter, Teleglobe shall no longer have any obligations to Bell
Canada or restrictions with respect to *** and *** as such obligations or restrictions relate to IP Transit Services. 

	(ii)
	the
following additional Canadian cable companies: *** and ***;

	(iii)
	the
following Canadian carriers: ***, and ***; and

	(iv)
	the
following Content Providers: ***, and to that end Bell Canada agrees to use reasonable commercial efforts, to assign to Teleglobe any and all IP transit related agreements Bell
Canada may have entered into, solely as it relates to Teleglobe IP Transit Services, with any of the foregoing Content Providers, provided that Bell Canada shall be entitled to recognize all revenue
under Canadian GAAP in respect of such agreements described in this Section 5.1.2(a)(iv), as it relates to their respective IP transit generated business, until the expiry of the then current
terms of such IP transit related agreements. Teleglobe shall be entitled to promote, market and sell IP Transit Services to three (3) additional Content Providers for each of 2004 and 2005, and
only two (2) additional Content Providers in each of 2006 and 2007, all of which are subject to Bell Canada's prior written approval, which approval shall not be unreasonably withheld. 

** Portions
hereof have been omitted and filed separately with the Secturities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 406
of the Securities Act of 1933, as amended. 

51

 

	(b)
	IDDD Potential Customers.    Teleglobe shall be entitled to promote, market and sell, in the Territory, on a
non-exclusive basis, Teleglobe's IDDD Services, solely to *** and *** (collectively the "Teleglobe Potential IDDD Customers").

	(c)
	Canada Direct Services.    Teleglobe shall be entitled to promote, market and sell Canada Direct Services to TELUS
Communications Inc.

	5.1.3
	Second Amendment of Article 3.3 of Master Agreement.    The second sentence of Article 3.3 of the Master
Agreement is hereby deleted and replaced with the following: "Subject to the foregoing (Section 5.1.2 of the First Amendment), and for greater certainty, Teleglobe agrees that it shall not
create or participate directly or indirectly, or through the use of an Affiliate, in any initiative aimed at providing Competing Services at either the wholesale or retail level to any Person in the
Territory".

	5.2
	Amendment of Article 3.4 of Master Agreement.    Article 3.4 of the Master Agreement is hereby amended by
deleting the first sentence, and replacing it with Section 5.2.1 below:

	5.2.1
	Bell Canada Flex; Teleglobe Right to Match.    Subject to Articles 3.5 and 3.6 of the Master Agreement as amended, Bell
Canada shall fulfill, satisfy and discharge all of its requirements for the delivery, outside of the Territory of the Teleglobe Exclusive Services through Teleglobe; provided that from the Effective
Date, Bell Canada shall no longer be bound or restricted by any exclusivity obligations contained in the Master Agreement (as amended by the First Amendment) only to the extent it is granted Flex
Rights and Right to Match Rights as contemplated by the terms set out below.

	(a)
	IP Transit Commitment.    Bell Canada shall be entitled to obtain IP Transit services from Competing Providers for
requirements outside of the Territory, in volumes at or exceeding the Bell Canada monthly minimum volume commitment ("IP Transit Monthly Volume Commitment") determined (subject as hereinafter
provided) as follows: (1) during each of 2003 (as of the Effective Date), 2004, 2005—a minimum monthly volume commitment of ***; and (2) during each of 2006 and
2007—a minimum monthly volume commitment of ***. Notwithstanding the IP Transit Monthly Volume Commitment, Telegtobe agrees that Bell Canada's monthly IP Transit usage may fluctuate
positively or negatively by 7.5% from the IP Transit Monthly Volume Commitment, on a month to month basis, provided that Bell Canada meets its IP Transit Monthly Volume Commitment on an annualized
basis, and further provided that Bell Canada shall be entitled to apply any shortfall in any given month (the "Shortfall Month") to any excess traffic of IP Transit traffic sent by Bell Canada to
Teleglobe in any two (2) month period immediately prior to or following a Shortfall Month.

	(i)
	For
the avoidance of doubt, subject to this Section 5.2.1(a) and Section 5.4, Bell Canada shall pay Teleglobe for the greater of: (1) the Bell Canada actual IP
Transit traffic routed through Teleglobe, in a given month; and (2) the IP Transit Monthly Volume Commitment. 

*** Portions
hereof have been omitted and filed separately with the Secturities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 406
of the Securities Act of 1933, as amended. 

52

  

	(ii)
	For
greater certainty, and for the purpose of determining the IP Transit Monthly Volume Commitment, the Parties agree as follows:

	(1)
	the
IP Transit Monthly Volume Commitment shall be composed solely of traffic routed directly (connected) to Teleglobe IP ports from Bell Canada routers
("On-Net Traffic");

	(2)
	the
IP Transit Monthly Volume Commitment for each of 2003, 2004 and 2005 shall be adjusted downward (on a per Gb, or any portion thereof, basis) where Bell Canada is
able to demonstrate to Teleglobe (acting reasonably), within sixty (60) days from the receipt of a Signing Notice (hereinafter defined) that it has lost any On-Net Traffic as a
result of Teleglobe having signed or entered into agreements with any of the Teleglobe Potential IP Customers (other than Rogers and Cogeco), which were under contract with and connected directly to
Bell Canada, as of the Effective Date, for the purpose of Bell Canada supplying IP Transit Services to such Teleglobe IP Potential Customers (which shall include, for greater certainty, any agreement
assigned by Bell Canada to Teleglobe pursuant to Section 5.1.2 (a) (iv) hereof). Teleglobe shall provide Bell Canada with written notice of any agreements Teleglobe enters into with any
of the Teleglobe IP Potential Customers (the "Signing Notice") within thirty (30) days of such agreements having been entered into. For greater certainty, the aforementioned lost
On-Net Traffic to be applied against the IP Transit Monthly Volume Commitment shall be at a maximum, the amount of Teleglobe On-Net Traffic lost by Bell Canada to Teleglobe and
not the IP Transit traffic actually sent by such Teleglobe IP Potential Customers to Teleglobe or previously sent to Bell Canada; and

	(3)
	any
traffic sent to Sprint Communications Company LP ("Sprint") and/or Cable & Wireless USA Inc. ("C&W") by Bell Canada via a Teleglobe port shall not be
computed as part of the IP Transit Monthly Volume Commitment.

	(iii)
	*** and ***:    Upon Bell Canada's request, Teleglobe shall commence negotiations with each of *** to allow Bell Canada to
establish network connectivity directly to such aforementioned carrier(s) ("*** Direct Connect"), pursuant to the terms and conditions set out below, for the purpose of routing Bell Canada IP traffic
destined to ***:

	(1)
	in
negotiating connectivity arrangements with any of the *** Direct Connects, Teleglobe shall utilize its best efforts for a reasonable period of time and shall inform
Bell Canada of any progress, or lack thereof, in such respect, provided for greater certainty, that best efforts shall not be interpreted to include an obligation on the part of Teleglobe to accept
higher IP transit pricing from *** than IP transit pricing Teleglobe pays ***, as of the Effective Date, or to pay for IP transit service if Teleglobe has a peering agreement with *** as of the
Effective Date;

	(2)
	Teleglobe
may request reasonable assistance from Bell Canada in order to assist it in entering into the connectivity arrangements described in this
Section 5.2.1(a)(iii) with any of the *** Direct Connects, provided both Parties have determined, acting reasonably, that such assistance may be beneficial to the consummation of such
transactions with any such *** Direct Connects;

	(3)
	notwithstanding
the direct network connectivity between any of the *** Direct Connects and Bell Canada, pursuant to this Section 5.2.1(a)(iii), such network 

	***
	Portions
hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 406
of the Securities Act of 1933, as amended. 

53

 

	

	connectivity
shall be pursuant to contractual connectivity arrangements to be entered into by and between Teleglobe and the *** Direct
Connects (which for greater certainty, shall be subject to Bell Canada's consent as contemplated in Section 5.2.1 (a)(iii)(6) below), and to that end Teleglobe shall have management control of
such contractual connectivity arrangements;

	(4)
	Bell
Canada shall route all of its IP traffic destined to the *** Direct Connects in accordance with Teleglobe routing instructions (which shall include as a minimum the
routing of peer type traffic to each of the *** Direct Connects);

	(5)
	the
rates payable by Bell Canada for the IP traffic routed through the *** Direct Connects shall be the greater of: (i) the rates paid by Teleglobe to each of the
*** Direct Connects for Bell Canada's generated IP traffic (the "*** Direct Connect Rates"), and (ii) the rates charged by Teleglobe to Bell Canada, pursuant to Section 8.1 of hereof,
for Bell Canada's generated IP traffic; provided that if any of the *** Direct Connect Rates are higher than the Teleglobe rates charged to Bell Canada pursuant to Section 8.1, hereof, for such
destined IP traffic, Bell Canada shall be provided with the opportunity to renegotiate the *** Direct Connect Rates, prior to Teleglobe finalizing the applicable contractual connectivity arrangements
with the *** Direct Connects, directly with ***, as the case may be, on terms and conditions acceptable to Teleglobe, acting reasonably. If Bell Canada is unsuccessful in negotiating lower *** Direct
Connect Rates, Bell Canada shall have the option of routing IP traffic, destined to any of the *** Direct Connects, at the Teleglobe negotiated *** Direct Connect Rates or routing the said IP traffic
to *** through Teleglobe ports, in which case the applicable rates shall then be in accordance with Section 8.1 hereof; provided that the traffic routed via the Teleglobe ports shall be deemed
not to be On-Net Traffic and shall not be computed as part of the Bell Canada IP Transit Monthly Volume Commitment; and

	(6)
	Bell
Canada shall be entitled, acting reasonably, to refuse any agreement relating to the *** Direct Connects, contemplated pursuant to this Section 5.2.1
(a)(iii). Without restricting the foregoing, Bell Canada shall be entitled to refuse any proposed agreement or any proposed amendment thereto with any of the *** Direct Connects where contractual
connectivity arrangements being negotiated by Teleglobe, with any of the *** Direct Connects, pursuant to Section 5.2.1 (a)(iii)(3), are not in material compliance with Bell Canada's
interconnection standards and impose on Bell Canada any unreasonable connectivity requirements or commercial terms or conditions which may have a negative commercial impact on Bell Canada.

	

	Best Efforts.    If Teleglobe does not utilize its best efforts, in order to secure direct
connectivity for Bell Canada with any of the *** Direct Connects, in accordance with the terms and conditions of this Section 5.2.1(a)(iii), Bell Canada shall be entitled to pursue any legal
remedy available at law or in equity available pursuant to the Master Agreement. For greater certainty, failure on the part of Bell Canada to negotiate for itself with any of the *** Direct Connects,
pursuant to Sections 5.2.1(a)(iii)(5), or refusal on the part of Bell Canada of any proposed agreement with any of such *** Direct Connects pursuant to Section 5.2.1(a)(iii)(6) above, shall not
be construed or interpreted as releasing, in whole or in part, Teleglobe from its obligations to indemnify Bell Canada under the Master Agreement. 

	***
	Portions
hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 406
of the Securities Act of 1933, as amended. 

54

 

	

	No Peering Traffic.    In addition, Bell Canada agrees not to, directly or indirectly, establish
peering or transit contracts with any of ***, or any other provider for IP transit traffic destined to ***, regardless of whether or not direct connectivity with either *** has been established,
unless otherwise agreed to by the Parties.

	

	Termination of Commitment.    For greater certainty, notwithstanding anything under the Master
Agreement or the First Amendment to the contrary, effective January 1, ***, Bell Canada shall no longer be obligated to route its *** IP Transit destined traffic through Teleglobe or under
connectivity arrangements managed by Teleglobe as contemplated herein.

	(iv)
	*** and ***. Upon Bell Canada's request, Teleglobe shall commence negotiations with each of *** and *** to allow Bell Canada to
establish network connectivity directly to such aforementioned carrier(s) ("*** Direct Connects") pursuant to the terms and conditions set out below, for the purpose of routing Bell Canada IP traffic
destined to ***:

	(1)
	in
negotiating connectivity arrangements with any of the *** Direct Connects, Teleglobe shall utilize its best efforts for a reasonable period of time and shall inform
Bell Canada of any progress, or lack thereof, in such respect, provided for greater certainty, that best efforts shall not be interpreted to include an obligation on the part of Teleglobe to accept IP
transit pricing from *** higher than IP transit pricing Teleglobe pays *** as of the Effective Date, or to pay for IP transit service if Teleglobe has a peering agreement with *** as of the Effective
Date;

	(2)
	Teleglobe
may request reasonable assistance from Bell Canada in order to assist it in entering into the connectivity arrangements described in this
Section 5.2.1(a)(iv) with any of the *** Direct Connects, provided both Parties have determined, acting reasonably that such assistance may be beneficial to the consummation of such,
transactions with any of such *** Direct Connects;

	(3)
	notwithstanding
the direct network connectivity between any of the *** Direct Connects and Bell Canada, pursuant to this Section 5.2.1(a)(iv), such network
connectivity shall be pursuant to contractual connectivity arrangements to be entered into by and between Teleglobe and the *** Direct Connects (which, for greater certainty, shall be subject to Bell
Canada's consent as contemplated in Section 5.2.1(a)(iv)(6) below), and to that end Teleglobe shall have management control of such contractual connectivity arrangements;

	(4)
	Bell
Canada shall route all of its IP traffic destined to the *** Direct Connects in accordance with Teleglobe routing instructions (which shall include, as a minimum
the routing of peer type traffic to the carriers) with Bell Canada's IP Transit Monthly Volume Commitment being reduced by: 125 Mb, on a monthly basis, upon all of Bell Canada's *** traffic
being re-routed through a *** Direct Connect, and 125 Mb, on a monthly basis, upon all of Bell Canada's *** traffic being re-routed through an *** Direct Connect;

	(5)
	the
rates payable by Bell Canada for the traffic routed through the *** Direct Connects shall be the greater of:    i the rates paid by Teleglobe to each of
the *** Direct Connects for Bell Canada's generated IP traffic (the "*** Direct Connect Rates"), and ii the rates charged by Teleglobe to Bell Canada, pursuant to Section 8.1 hereof, for Bell
Canada's generated IP traffic; provided that if any of the *** Direct Connect Rates are higher than the Teleglobe rates charged to 

	***
	Portions
hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 406
of the Securities Act of 1933, as amended. 

55

 

	

	Bell
Canada pursuant to Section 8.1 hereof, for such destined IP Traffic, Bell Canada shall be provided with the opportunity to
renegotiate the *** Direct Connect Rates, prior to Teleglobe finalizing the applicable contractual connectivity arrangements with the *** Direct Connects, directly with ***, as the case may be, on
terms and subject to conditions acceptable to Teleglobe, acting reasonably. If Bell Canada is unsuccessful in negotiating lower *** Direct Connect Rates, Bell Canada shall then have the option of
routing IP traffic destined to ***, as the case may be, at the Teleglobe negotiated price through the *** Direct Connects or routing the said IP traffic to *** through Teleglobe ports at the then
applicable rates pursuant to Section 8.1 hereof; provided that the traffic routed via the Teleglobe ports shall be deemed On-Net Traffic and shall be computed as part of the Bell
Canada IP Transit Monthly Volume Commitment; and

	(6)
	Bell
Canada shall be entitled, acting reasonably, to refuse any agreement relating to the *** Direct Connects, contemplated pursuant to Section 5.2.1(a)(iv).
Without restricting the foregoing, Bell Canada shall be entitled to refuse any proposed agreement with any of the *** Direct Connects where connectivity contractual arrangements being negotiated by
Teleglobe, with any of the *** Direct Connects, pursuant to Section 5.2.1(a)(iv)(3), are not in material compliance with Bell Canada's interconnection standards and impose on Bell Canada any
unreasonable connectivity requirements or commercial terms or conditions which may have a negative commercial impact on Bell Canada.

	

	Best Efforts.    If Teleglobe does not utilize its best efforts, in order to secure direct
connectivity for Bell Canada with either ***, in accordance with the terms and conditions of this Section 5.2.1(a)(iv), Bell Canada shall continue to route all of the IP traffic destined to
such carriers though Teleglobe (in which circumstances all such IP traffic shall apply towards the Bell Canada's IP Transit Monthly Volume Commitment) provided, however, notwithstanding the foregoing,
in the event of any breach of by Teleglobe of its obligations hereunder, Bell Canada shall be entitled to pursue any legal remedy available at law or in equity pursuant to the Master Agreement. For
greater certainty, failure on the part of Bell Canada to negotiate for itself with any of the *** Direct Connects, pursuant to Section 5.2.1(a)(iv)(5) or the refusal on the part of Bell Canada
of any proposed agreement with any of such *** Direct Connects pursuant to Section 5.2.1(a)(iv)(6) above, shall not be construed or interpreted as releasing, in whole or in part, Teleglobe from
its obligations to indemnify Bell Canada under the Master Agreement.

	

	No Peering Traffic.    In addition, Bell Canada agrees not to, directly or indirectly, establish
peering or transit contracts with ***, or any other provider for this IP traffic destined to ***, regardless of whether or not direct connectivity with *** has been established, unless otherwise
agreed to by the Parties.

	

	Termination of Commitment.    For greater certainty, notwithstanding anything under the Master
Agreement or hereunder, effective January 1, ***, Bell Canada shall no longer be obligated to route its *** IP Transit traffic through Teleglobe or under any connectivity agreements managed by
Teleglobe as contemplated herein. 

	***
	Portions
hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 406
of the Securities Act of 1933, as amended. 

56

 

	(b)
	Bell Canada Allocation.    Bell Canada shall be subject to the following rights and obligations with respect to IDDD services
obtained by Bell Canada and terminating outside of the Territory ("IDDD Outbound Services"):

	(i)
	in
2003, Bell Canada may obtain up to *** of its required volume of IDDD Outbound Services by way of exercising its Flex Right, and up to *** of its required volume of IDDD Outbound
Services shall be subject to a Teleglobe Right to Match, pursuant to the calculation set forth below in this Section 5.2.1(b);

	(ii)
	in
2004, Bell Canada may obtain up to *** of its required volume of IDDD Outbound Services by way of exercising its Flex Right, and up to *** of its required volume of IDDD Outbound
Services shall be subject to a Teleglobe Right to Match, pursuant to the calculation set forth below in this Section 5.2.1(b);

	(iii)
	in
2005, Bell Canada may obtain up to *** of its required volume of IDDD Outbound Services by way of exercising its Flex Right and up to *** of its required volume of IDDD Outbound
Services shall be subject to a Teleglobe Right to Match, pursuant to the calculation set forth below in this Section 5.2.1(b);

	(iv)
	in
2006, Bell Canada shall route a minimum of *** of its required volume of IDDD Outbound Services to Teleglobe and *** of its required volume of IDDD Outbound Services shall be
subject to a Teleglobe Right to Match, pursuant to the calculation set forth below in this Section 5.2.1(b); and

	(v)
	in
2007, Bell Canada shall route a minimum of *** of its required volume of IDDD Outbound Services to Teleglobe and *** of its required volume of IDDD Outbound Services shall be
subject to a Teleglobe Right to Match, pursuant to the calculation set forth below in this Section 5.2.1(b).

	

	Determination of Allocations.    The Flex Right and Right to Match Right Allocations contemplated
in this Section 5.2.1(b) shall be determined as follows. The required volume of IDDD Outbound Services, shall be an amount, expressed in dollars, which, for 2003 shall be equal to the aggregate
sum of the products of the total volume of IDDD Outbound Services for each route purchased by Bell Canada from Teleglobe in 2002 (excluding the 2002 Excluded Traffic, provided that such 2002 Excluded
Traffic shall be replaced with the average Bell Canada IDDD Outbound Services traffic recorded for mobile and Cuba terminating traffic in the months of September and October of 2002) multiplied by the
applicable rate established and in effect on January 1, 2003 on a route by route basis. The required volume of IDDD Outbound Services for subsequent years (for the purpose of determining the
Flex Rights and Right to Match Right Allocations for such subsequent years) shall be an amount, expressed in dollars, established on an annual basis, on the first day of each such subsequent calendar
year (in this Section 5.2.1(b) the "Adjustment Date") equal to the aggregate sum of the products of the total volume of IDDD Outbound Services for each route during the last calendar year
preceding the Adjustment Date (in this Section 5.2.1(b) the "Base Year") multiplied by the average rate applicable during the months of November and December of the Base Year. Provided that in
2004, IDDD Outbound Services purchased by Bell Canada shall exclude the 2003 Excluded Traffic replacing such 2003 Excluded Traffic with the average Bell Canada IDDD Outbound Services traffic recorded
for Cuba terminating traffic in the months of March and April 2003. For avoidance of doubt, the Parties agree that the IDDD Outbound Services required volume for the purposes of each Base Year
shall include only the traffic routed to Teleglobe together with the traffic routed to Competing Providers on a Flex Right or Right to Match Right basis. 

	***
	Portions
hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 406
of the Securities Act of 1933, as amended. 

57

 

	

	Rights: Excesses and Shortfalls.    Subject to the terms and conditions set forth in this
paragraph, Bell Canada agrees it shall not exceed its annual Allocation in each year. Commencing on January 1, 2004, in any given month thereafter, Bell Canada shall not exercise more than
(i) 133% of its average monthly Right to Match Right and Flex Right Allocation, on an aggregated monthly basis, nor (ii) more than 150% of each of its average monthly Allocations, such
average monthly Rights to be calculated based on the aggregate yearly Flex and Right to Match Right Allocations (in aggregate with respect to (i) and separately with respect to
(ii) herein this sentence) determined as set forth above divided by twelve months. For greater certainty, however, the Parties agree that the foregoing restrictions related to Bell Canada
exceeding its Allocation shall not apply to its exercise of the Rights during 2003. Where Bell Canada exercises any of the Rights, in any calendar year, in excess of the Bell Canada Allocation or
fails, on the other hand, to use the Rights up to the Bell Canada Allocation, as contemplated above, such excess or shortfall, may be carried forward as follows: (i) in the case of a shortfall
in the exercise of the Rights, a maximum of five (5%) percent for each of the Right to Match Right Allocation and Flex Right Allocation in a given year shall be added to the Right to Match Right
Allocation or the Flex Right Allocation, as the case may be, in the calendar year following the calendar year where such shortfall occurred; and (ii) in the case of any excess in the exercise
of the Rights, a maximum of five (5%) percent for each of the Right to Match Right Allocation and Flex Right Allocation in a given year shall be debited on a dollar for dollar basis from the
respective Rights in the calendar year following the calendar year where such excess use occurred, provided that Bell Canada shall have used commercially reasonable efforts to exercise the Rights at
the Bell Canada Allocation, as contemplated above, in each calendar year. In addition, the Parties further agree that should Bell Canada exercise any of the Rights, in any calendar year, in excess of
105% ("Excess Amount") of each of the Right to Match Right and Flex Right Allocation, respectively, in a given year, such excess shall be debited from Bell Canada's Right to Match Right and/or Flex
Right Allocation for the following year in an amount equal to twice the Excess Amount.

	

	Debiting of Allocations.    The respective Flex Right and Right to Match Right Allocations shall
be debited by deducting amounts expressed in dollars equal to the product of the volume of IDDD Outbound Services utilized by Bell Canada on a Flex Right and Right to Match Right basis multiplied by
the rates used in the determination of the applicable Flex Right or Right to Match Right Allocation as set forth in Section 5.2.1(b) (for greater certainty, rates in effect on January 1,
2003 and the average applicable rates in effect in the months of November and December of each Base Year for subsequent years), on a route by route basis.

	

	For
greater certainty, and except as otherwise contemplated in this Section 5.2.1(b), Bell Canada shall fulfill, satisfy and discharge all of its
other requirements for IDDD Outbound Services from Teleglobe; provided that, with respect to Teleglobe IDDD Potential Customers, Bell Canada shall be entitled to obtain IDDD services from Competing
Providers for the sole purpose of reselling such IDDD services to such Teleglobe IDDD Potential Customers, without negatively impacting or reducing the computation of the IDDD Outbound Services Flex
Right or Right to Match Right, as described in Sections 5.2.1(b) (i) through (v), above, during any calendar year where Bell Canada has obtained IDDD services from Competing Providers for
Teleglobe IDDD Potential Customers. For greater certainty, however, the IDDD service traffic procured by Bell Canada from Competing Providers, for those Teleglobe IDDD Potential Customers, during any
given calendar year, shall not be taken into account when calculating the Flex Right or Right to Match Right Allocations for the subsequent calendar years. 

58

 

	(c)
	Right to Match on Other Services.    Bell Canada shall be entitled to procure Competing Services for IPL Services, Cross
Border Facilities and Network Facilities, as well as network, circuit and local loop, facilities in the United States, all of which shall be subject to Teleglobe's Right to Match Right, in all
instances, for such Bell Canada requirements, provided that with respect to Cross Border Facilities and Network Facilities the pricing principles set out in the Master Agreement shall continue to
apply. For greater certainty, Teleglobe's Right to Match pursuant to this Section 5.2.1(b) shall not result in debiting of Teleglobe's Right to Match Allocation.

	5.3
	Canada Direct Services Promotions.    The Parties agree to cooperate on a commercially reasonable basis to optimize marketing
and communications strategies for Canada Direct Service. For each calendar year, commencing in 2003, each Party hereby agrees to spend, US$2000,000.00 on advertising and promoting the Canada Direct
Service, and both Parties shall work cooperatively to develop a promotional plan.

	5.4
	Teleglobe Off-Net Delay Obligations.    With respect to IP Transit Services, Teleglobe agrees to guarantee an
Off-Net Delay of 35 ms for all Tier-1 Peers with whom Teleglobe directly connects. Pursuant to Teleglobe's standard Service Level Agreement ("SLA"), Teleglobe will work with
Bell Canada to correct service deficiencies with respect to Off-Net Delays, provided that Bell Canada informs Teleglobe of such deficiencies by opening a trouble ticket with Teleglobe's
Global Customer Service Center ("GCSC"). The Parties agree that, (i) if Teleglobe is unable to resolve a particular Customer's documented service deficiency (i.e., Off-Net Delay)
for a period of at least three (3) months, and (ii) Bell Canada is able to demonstrate that the deficiency has resulted in Bell Canada breaching its agreement with its Customer, and
(iii) Customer terminates its agreement with Bell Canada as a direct result of such breach, Bell Canada's IP Transit Monthly Volume Commitment shall be automatically adjusted by an amount equal
to the volume of traffic that Teleglobe had been receiving from that Customer, through Bell Canada, such volume to be determined based on the average of the three (3) months immediately
preceding the date on which Bell Canada opened the first trouble ticket for the deficiency which gave rise to the termination. The aforementioned volume of traffic to be reduced from Bell Canada's IP
Transit Monthly Volume Commitment shall be identified by Bell Canada and confirmed by Teleglobe, which confirmation shall not be unreasonably withheld. 

6.     RIGHT OF FIRST REFUSAL FOR NEW SERVICES  

	6.1
	Right of First Refusal for New Services.    Article 5.1 of the Master Agreement is hereby amended by adding the
following clause at the beginning of the first sentence: "Until December 31, 2005...." and by substituting a "w" for the "W" at the beginning of such sentence. 

7.     RIGHT TO MATCH  

	7.1
	Right to Match.    In this First Amendment, including its recitals, unless otherwise defined or unless the context otherwise
requires, the following terms shall have the following meanings: 

"Bilateral Basis" means the reciprocal exchange of originating and terminating Category 2 Services between a Buyer and a Carrier; 

"Bilateral Parties" means a Buyer or a Carrier engaged on a Bilateral Basis; 

"Bilateral Route" means a route where a Buyer fulfills some or all of its requirements for Category 2 Services on a Bilateral Basis; 

"Carrier" means either a Competing Provider, Teleglobe or Bell Canada, as the case may be; 

59

 

"Category 1 Services" means the services set out in Sections 5.1.1(b) and 5.2.1(c) of this First Amendment; 

"Category 2 Services" means IDDD Outbound Services and Switch Minute Terminations in Canada Services; 

"Destinations" means a set of numbering ranges that correspond exactly to numbering ranges and destination names as defined by Teleglobe for IDDD
Outbound Services and as defined by Bell Canada for Switch Minute Terminations in Canada as set out from time to time in each Party's respective rate updates. 

"Exceptional Market Events" means conditions leading to a fundamental structural change in traffic termination costs, which may include natural
disasters, political instability, military action, regulatory action, or other events of such nature. For avoidance of doubt, such exceptional market events do not include circumstances where a
Competing Provider raises its rates to reflect an increase in rates by an underlying carrier where such rate increases is not related to any of the foregoing circumstances; 

"Expression of Intent Period" has the meaning set out in Section 7.2(a)(iii) hereof; 

"Full Route" means a route where a Buyer fulfills all of its requirements for the delivery of all of its Category 2 Services traffic for that
route with one Carrier; 

"Initial Response" has the meaning set out in Section 7.2(a)(iii) hereof; 

"Issuing Party" means a Buyer issuing an RFQ or a Right to Match Opportunity, as the case may be; 

"match", "matched" or "matching" means, with respect to
Category 2 Services, the agreement of the Responding Party to provide Category 2 Services, on identical terms and conditions (subject to Section 7.2(b)(ix) hereof) as those
offered by a Competing Provider pursuant to a Competing Provider offer containing the Required Information, and further to which the Issuing Party is to purchase the Category 2 Services, from
the Responding Party in accordance with the terms and condition of the Master Agreement as amended by this First Amendment; and with respect to Category 1 Services, means the agreement of the
Responding Party to provide Category I Services, on identical terms and conditions as set forth in the RFQ, and further to which the Issuing Party is to purchase the Category 1 Services
from the Responding Party in accordance with the terms and conditions of the Master Agreement as amended by the First Amendment including Sections 7.2(a)(i) and 7.2.(a)(vi) hereof; 

"Partial Bilateral Route" means a route where a Buyer fulfills its requirements for Category 2 Services, but only with respect to all
Category 2 Services traffic in excess of its commitment to Bilateral Partner; 

"Partial Route" means a route where a Buyer wishes to fulfill its requirements for Category 2 Services from at least two Carriers on a
non-Bilateral Basis; 

"Responding Party" means Supplier responding to the RFQ or Right to Match Opportunity, as the case may be; 

"RFQ" means a request for quotation; 

"Right to Match Opportunity" means the opportunity granted by the Issuing Party to the Supplier to match a Competing Provider(s)' offers; 

"Right to Match Response" means the response by the Responding Party to the Issuing Party's Right to Match Opportunity; and 

60

 

"Right to Match Service Term" means the term applicable to Category 2 Services subject to a Right to Match Opportunity. 

	7.2
	Category I Services and Category 2 Services: Right to Match.    The Parties hereby agree:

	(a)
	With
respect to Category 1 Services:

	(i)
	The
Issuing Party shall issue, simultaneously to the Responding Party and to Competing Providers, all RFQs with respect the Issuing Party's requirements for all Category 1
Services. Where the Issuing Party fails to simultaneously issue an RFQ, for each day that the Competing Provider received the RFQ before the Responding Party such day shall be added to the period of
time allotted to the Responding Party to match a Competing Provider's solution set forth in Section 7.2(a)(vi) below and the Responding Party's Initial Response and/or subsequent
response in such circumstances pursuant to Section 7.2(a)(vi) below shall be considered a matching solution even if such offer is *** the Competing Provider's offer.

	(ii)
	All
RFQs shall contain the Issuing Party's requirements with sufficient and reasonable detail (which shall include, at a minimum, the Required Information) to enable the formulation
of an informed decision by the Responding Party as to whether or not it wishes to respond, provided that the Responding Party shall act reasonably.

	(iii)
	Within
two (2) Business Days after receipt of an RFQ, the Responding Party shall notify the Issuing Party, in writing or by e-mail, of its interest in responding
to the RFQ (the "Expression of Intent Period"), provided that the Responding Party's definitive response shall be delivered to the Issuing Party in writing or by e-mail, within ten
(10) Business Days after receipt of an RFQ, or as otherwise set out in the RFQ, (the "Initial Response").

	(iv)
	If
the Responding Party fails to express an intent to respond within the Expression of Intent Period, the Responding Party shall be deemed to have refused the opportunity to provide
the required Category 1 Services and the Issuing Party shall thereafter be entitled pursue the acquisition of such Category 1 Services from any Competing Provider without any obligation
to the Responding Party, notwithstanding any provision of the Master Agreement or this First Amendment to the contrary (other than as set forth in Section 7.2(a)(vi) below).

	(v)
	Where
the Responding Party has expressed an intent to respond to an Issuing Party RFQ, pursuant to Section 7.2(a)(iii) above, and thereafter has submitted an Initial
Response, the Issuing Party shall in good faith, evaluate the Responding Party's Initial Response and determine whether such response represents a competitive solution in comparison with other
responses containing the Required Information received from Competitive Providers. The Responding Party hereby acknowledges, for the purpose of determining whether or not a solution is competitive,
that the Issuing Party shall assess the Responding Party's Initial Response, on an *** such as, without limitation, ***, and *** by the Issuing Party on the ***, provided that (i) the Issuing
Party shall in all instances act reasonably in assessing any Responding Party's Initial Responses and (ii) if the Responding Party has met all of the requirements of the RFQ then the price for,
the Category 1 Service shall be the determining factor. Notwithstanding anything to the contrary, if the Responding Party has met all of the requirements (i.e., the Required Information) in the
RFQ in its Initial Response then the Issuing Party shall purchase the Category 1 Services from the Responding Party if the Responding Party's price is equal to or lower than the price set forth
in the responses received from Competitive Providers. 

	***
	Portions
hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 406
of the Securities Act of 1933, as amended. 

61

  

	(vi)
	Where
the Responding Party's Initial Response is determined by the Issuing Party not to be a competitive solution (i.e., the price is higher than a Competitive Provider's price or
the response fails to meet the requirements—i.e., the Required Information—set out in the RFQ), pursuant to Section 7.2(a)(v) above, or the Responding Party fails
to submit an Initial Response pursuant to Section 7.2(a)(iii) above, the Issuing Party shall grant to the Responding Party a Right to Match Opportunity with respect to a solution
submitted by any Competitive Provider and the Responding Party shall be entitled to match such Competing Provider solution by submitting a Right to Match Response within two (2) Business Days
from the date of receipt of the Right to Match Opportunity, provided that where the Responding Party fails to submit an Initial Response, the Responding Party shall include, at a minimum, in its Right
to Match Response a 2.5% price discount to be applied against the price set out in the Right to Match Opportunity.

	(vii)
	Where
the Responding Party rejects or fails to respond to the Right to Match Opportunity within the time periods prescribed in Section 7.2(a)(vi) above, or fails to
match an offer from a Competing Provider in response to a Right to Match Opportunity, pursuant to Section 7.2(a)(vi) above, the Issuing Party shall be entitled to pursue the acquisition
of Category 1 Services from the Competing Provider, without obligation to the Responding Party and notwithstanding any provision of the Master Agreement or this First Amendment to the contrary.

	(b)
	With
respect to Category 2 Services:

	(i)
	The
Issuing Party shall submit a Right to Match Opportunity to the Responding Party, which shall include sufficient and reasonable detail (which shall include, at a minimum, the
Required Information) to enable the formulation of an informed decision by the Responding Party as to whether or not it wishes to respond, provided that the Responding Party shall act reasonably.

	(ii)
	The
Issuing Party shall make reasonable effort, in any Right to Match Opportunity, to request Category 2 Services for the Responding Party's***. If a Right to Match
Opportunity is not a request for Category 2 Services with respect to any of the Responding Party's ***, then:

	(1)
	The
Responding Party may accept the Right to Match Opportunity by modifying its *** and the applicable prices in order to correspond with the destinations set forth in the Right To
Match Opportunity, provided that the Responding Party shall be entitled to modify its prices for all remaining *** affected by the Right to Match Opportunity and such price modifications shall be
effective for the duration of the Right To Match Service Term; or

	(2)
	the
Responding Party may reject the Right To Match Opportunity, in which case, the Responding Party may modify its prices for all *** effected by the Right to Match Opportunity and
such price modifications shall be effective for the duration of the Right To Match Service Term.

	

	If
the Right to Match Service Term is in excess of one (1) calendar month, the Responding Party shall have ten (10) Business Days to respond
to the Right to Match Opportunity.

	

	If
the Right to Match Service Term is less than or equal to one (1) calendar month, the Responding Party shall have five (5) Business Days to
respond to the Right to Match Opportunity. 

	***
	Portions
hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 406
of the Securities Act of 1933, as amended. 

62

 

	(v)
	If
a Right to Match Opportunity is for a Right To Match Service Term greater than or equal to three (3) calendar months, the Issuing Party shall be entitled to cancel such
Right to Match Opportunity within five (5) business days from the date of rejection of such Right to Match Opportunity by the Responding Party. For greater certainty, the Issuing Party's Right
to Match Allocation shall not be debited or subject to any penalties as a result of such cancellation. The Parties agree that the Issuing Party's rights under this Section 7.2(b)(v) may
be invoked on only one occasion per calendar year.

	(vi)
	Where
the Responding Party fails to respond to the Right to Match Opportunity within the time period prescribed in either Section 7.2(b)(iii) or
7.2(b)(iv) above, or fails, as part of its Right to Match Response, to match a Competing Provider's offer containing the Required Information, the Issuing Party shall be entitled to pursue the
acquisition of Category 2 Services from the Competing Provider, without obligation to the Responding Party, notwithstanding any provision of the Master Agreement or this First Amendment to the
contrary.

	(vii)
	The
Issuing Party may offer to the Responding Party to extend the Right to Match Service Term, at any time, regardless of whether or not the Issuing Party is then procuring the
Category 2 Services from the Responding Party or from a Competing Provider, during the said Right to Match Service Term, provided that such extension shall be under the same pricing and quality
terms and conditions as the original Right to Match Opportunity, in which case the Responding Party shall have two (2) Business Days from the Responding Party's receipt of the offer from the
Issuing Party to respond to such offer.

	(viii)
	At
the end of the Right to Match Service Term, all Category 2 Services to be purchased by the Issuing Party thereafter shall be in accordance with the terms and conditions
of the Master Agreement, as amended by this First Amendment.

	(ix)
	The
Parties agree that the Competing Provider's offer with respect to rate(s) for all Category 2 Services shall be based on delivery at the Pre-determined
Connection Points. If such offer is based on delivery via connections other than the Pre-determined Connection Points *** other than to the Pre-determined Connection Points ***
to the rate(s) offered by a Competing Provider (for greater certainty, ***) in its offer containing the Required Information when determining whether the Right to Match Opportunity is considered
matched by the Responding Party.

	(x)
	The
Parties further agree:

	(1)
	Subject
to Section 7.2(b)(x)(6), in the case of a Full Route or Partial Bilateral Route, where the Right to Match Opportunity has been matched by the Responding Party, the
Responding Party shall:

	

	debit
the Issuing Party's Right to Match Allocation by deducting a dollar amount equal to the actual amount of Category 2 Service traffic sent under
the accepted Right to Match Opportunity multiplied by the applicable rate, in accordance with Sections 5.1.1 (a) and 5.2.1 (b);

	ii
	during
a Right to Match Service Term, guarantee the rate applicable pursuant to an accepted Right to Match Response for Category 2 Services ("Accepted Right to Match"), which
was subject to the Right to Match Opportunity, provided that the Category 2 Services traffic shall not be in excess of 110% of the original estimated Category 2 Services traffic set out
in the original Right to Match Opportunity. For Category 2 Services traffic in excess of the 110% of the original estimated Category 2 Services traffic identified as part of Right to 

	***
	Portions
hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 406
of the Securities Act of 1933, as amended. 

63

 

	

	Match
Opportunity, the Responding Party shall be entitled to *** for such excess Category 2 Services traffic by providing the Issuing Party with ***
Business Day's prior written notice of ***. The Responding Party hereby acknowledges and agrees that in the event any of the ***, the Issuing Party shall have no further obligation to continue routing
such excess generated Category 2 Services traffic to the Responding Party under the existing terms of the Accepted Right to Match from the effective date of any ***, regardless of whether or
not the Right to Match Service Term has expired; provided that the Issuing Party shall grant to the Responding Party a Right to Match Opportunity for such traffic. For greater certainty, in the event
the *** notice is not delivered by the Responding Party to the Issuing Party, as provided for herein, the *** in the original Right to Match Opportunity shall continue to apply until the end of the
Right to Match Service Term and the full amount of traffic actually routed by the Issuing Party shall be debited from the Issuing Party's Right to Match Allocation by deducting a dollar amount equal
to the actual amount of traffic sent multiplied by the applicable rate, in accordance with Sections 5.1.1(a) and 5.2.1(b).

	(2)
	Subject
to Section 7.2(b)(x)(6), in the case of a Partial Route, where a Right to Match Opportunity has been matched by the Responding Party, the Responding Party shall:

	

	debit
the Issuing Party's Right to Match Allocation by deducting a dollar amount equal to the actual amount of Category 2 Service traffic sent under
the accepted Right to Match Response, or 90% of the original estimated Category 2 Service traffic as set out in the Right to Match Opportunity, whichever is greater, multiplied by the
applicable rate, in accordance with Sections 5.1.1 (a) and 5.2.1 (b);

	ii
	during
the Right to Match Service Term, guarantee the rate applicable pursuant to the accepted Right to Match Response for Category 2 Services traffic ("Accepted Right to
Match"), which was subject to the Right to Match Opportunity, provided that such generated Category 2 Services traffic shall not be in excess of 110% of the original estimated Category 2
Services set out in the Right to Match Opportunity. For the Category 2 Services traffic in excess of the 110% of the original estimated Category 2 Services traffic identified as part of
Right to Match Opportunity the Responding Party shall be entitled to*** for such excess Category 2 Services traffic by providing the Issuing Party with *** Business Day's prior
written notice of ***. The Responding Party hereby acknowledges and agrees that in the event any of the ***, the Issuing Party shall have no further obligation to continue routing the applicable
Category 2 Services traffic to the Responding Party under the terms of the Accepted Right to Match from the effective date of any ***, regardless of whether or not the Right to Match Service
Term has expired; provided that the Issuing Party shall grant the Responding Party a Right to Match Opportunity for such traffic. For greater certainty, in the event the *** notice is not delivered by
the Responding Party to the Issuing Party, as provided for herein, *** in the original Right to Match Opportunity shall continue to apply until the end of the Right to Match Service Term and the full
amount of traffic actually routed by the Issuing Party shall be debited from the Issuing Party's Right to Match Allocation by deducting a dollar amount equal to the actual amount of traffic sent
multiplied by the applicable rate, in accordance with Sections 5.1.1(a) and 5.2.1(b). 

	***
	Portions
hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 406
of the Securities Act of 1933, as amended. 

64

 

	(3)
	Subject
to Section 7.2(b)(x)(5) hereof, in the case of a Full Route or Partial Bilateral Route, where the Right to Match Opportunity is rejected by the Responding Party, the
Responding Party shall:

	

	debit
the Issuing Party's Right to Match Allocation by deducting a dollar amount equal to the actual amount of Category 2 Service traffic sent to the
Competing Provider as a result of the rejected Right to Match Response, up to 110% of the original estimated Category 2 Services traffic as set out in the Right to Match Opportunity multiplied
by the applicable rate in accordance with Sections 5.1.1 (a) and 5.2.1(b);

	ii
	if
the actual generated Category 2 Services traffic exceeds 110% of the original estimated Category 2 Services traffic as set out in the Right to Match Opportunity, the
Responding Party shall debit the Issuing Party's Right to Match Right Allocation by the actual amount of Category 2 Services traffic sent in excess of 110% of the original estimated
Category 2 Services traffic, as set out in the Right to Match Opportunity, multiplied by the applicable rates in accordance with Sections 5.1.1(a) and 5.2.1(b), unless:

	a.
	in
2003, the Right to Match Opportunity original estimated Category 2 Services traffic is in excess of one (1) million minutes; and

	b.
	in
each of 2004, 2005, 2006 and 2007, the Right to Match Opportunity original estimated Category 2 Services traffic is in excess of five hundred thousand (500,000) minutes;

	

	in
which case, the Issuing Party shall: (i) issue a Right to Match Opportunity only in respect to such excess Category 2 Services traffic,
provided however that the Responding Party shall only have two (2) Business Days from the date of the issuance of the Right to Match Opportunity to issue a Right to Match Response; or
(ii) debit the Issuing Party's Flex Allocation by deducting a dollar amount equal to the actual generated excess Category 2 Services traffic multiplied by the applicable rate, in
accordance with Sections 5.1.1(a) and 5.2.1(b).

	(4)
	Subject
to Section 7.2(b)(x)(5), in the case of a Partial Route, where the Right to Match Opportunity is rejected by the Responding Party, the Responding Party shall:

	

	debit
the Issuing Party's Right to Match Allocation by deducting a dollar amount equal to the actual amount Category 2 Services traffic sent to the
Competing Provider as a result of the rejected Right to Match Response, up to 110% of the original estimated Category 2 Service traffic as set out in the Right to Match Opportunity multiplied
by the applicable rate, in accordance with Sections 5.1.1(a) and 5.2.1(b);

	ii.
	if
the actual generated Category 2 Services traffic exceeds 110% of the original estimated Category 2 Services traffic, as set out in the original Right to Match
Opportunity, the Issuing Party shall:

	a.
	issue
to the Responding Party a Right to Match Opportunity with respect to the Category 2 Services traffic only in excess of 110% of the original estimated Category 2
Services traffic, as set out in the original Right to Match Opportunity, provided however that the Responding Party shall only have two (2) Business Days from the date of the issuance of the
Right to Match Opportunity to issue a Right to Match Response; or

	b.
	deduct
from the Issuing Party's Flex Right Allocation a dollar amount equal to the amount of the Category 2 Services traffic in excess of 110% of the original estimated
Category 2 Services traffic, as set out in the Right to Match Opportunity multiplied by the applicable rate, in accordance with Sections 5.1.1(a) and 5.2.1(b).

	(5)
	Notwithstanding
Sections 7.2(b)(x)(3) and 7.2(b)(x)(4) above, if during a Right to Match Service Term the selected Competing Provider delivers a Competing Service which does 

65

 

not
meet the *** as set out in the Required Information or provides a Competing Service *** than set out in the original Right to Match Opportunity, the Parties agree that: 

	

	the
Issuing Party's Flex Allocation shall be debited by deducting a dollar amount equal to the amount of the actual Category 2 Services traffic sent
to the Competing Provider multiplied by the applicable rate, in accordance with Sections 5.1.1(a) and 5.2.1(b);

	ii.
	the
Issuing Party's Flex Allocation shall be debited by deducting a dollar amount equal to 25% of the estimated Category 2 Services traffic still outstanding with the Competing
Provider multiplied by the applicable rate (the "Penalty") only for such portion of the Penalty in excess of 10% of the aggregate value of the Right to Match Opportunities issued by the Issuing Party
during the calendar month where such Penalty arises, in accordance with Sections 5.1.1(a) and 5.2.1(b); and

	iii.
	If
the Right To Match Opportunity Service Term exceeds three (3) months, Sections 7.2(b)(x)(5)(i) and 7.2(b)(x)(5)(ii) above shall only apply to the remaining
estimated Category 2 Services traffic after deducting the Category 2 Services traffic actually sent to a Competing Provider in each three (3) month period complying with the terms
of the Right to Match Opportunity. (For example, if the original term of a Right to Match Opportunity was 12 months and the original traffic estimate was 24 million minutes. If after
8 months and 12 days ***, the first 6 months of traffic sent to the Competing Provider under the Right to Match will be debited against the Issuing Party's Right to Match
Allocation and the remaining traffic under the original estimate of 24 million minutes will be subject to the Penalty and deduction set forth in Sections 7.2(b)(x)(5)(i) and
7.2(b)(x)(5)(ii) above.

	

	For
greater certainty, the foregoing debit, if applicable, shall be in lieu of having the same actual generated Category 2 Services traffic debited
from the Issuing Party's Right to Match Allocation as set out in Sections 7.2(b)(x)(3) and 7.2(b)(x)(4) above. For the purpose of this Section, no Penalty or deduction pursuant to Sections
7.2(b)(x)(5)(i) and 7.2(b)(x)(5)(ii) above, shall apply in cases of:

	

	Exceptional
Market Events;

	ii.
	Force
Majeure; or

	iii.
	unanticipated
abnormal traffic patterns (e.g., time of day distribution).

	

	Reasonable
evidence of the foregoing exceptions shall be provided by the Issuing Party, if requested by the Responding Party, on a case—by case
basis. For greater certainty, if in the event that the Penalty or the deduction pursuant to Section 7.2(b)(ix)(5)(i) does not apply, the Issuing Party's Right to Match Allocation 

	***
	Portions
hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 406
of the Securities Act of 1933, as amended. 

66

 

	

	shall
be debited as per Sections 7.2(b)(ix)(3) and 7.2(b)(ix)(4) hereof, as the case may be.

	(6)
	Notwithstanding
Sections 7.2(b)(x)(1) and 7.2(b)(x)(2) above, if during a Right to Match Service Term the Responding Party (which shall only apply to Bell Canada and Teleglobe)
delivers a Category 2 Service which does not meet the *** set out in the original Right to Match Opportunity, the Parties agree that:

	(i)
	the
Issuing Party's Right to Match Allocation and Flex Allocation shall not be debited by deducting a dollar amount equal to the actual amount of Category 2 Services traffic
sent to the Responding Party multiplied by the applicable rate in accordance with Sections 5.1.1(a) and 5.2.1(b) hereof, or if amounts have already been debited, such amounts shall be credited by the
Responding Party to the Issuing Party's Right to Match Allocation and/or Flex Allocation, as the case may be (in this Section 7.2(b)(ix)(6) collectively the "Adjustment");

	(ii)
	a
dollar amount equal to 25% of the estimated Category 2 Services traffic still outstanding with the Responding Party multiplied by the applicable rate (the "Penalty") shall
be added to Issuing Party's Flex Allocation only for such portion of the Penalty in excess of 10% of the aggregate value of the Right to Match Opportunities issued by the Issuing Party during the
calendar month where such Penalty arises;

	(iii)
	the
Issuing Party shall then be entitled to *** the remaining Category 2 Services traffic, as set out in the original Right to Match Opportunity, to *** on the same terms and
conditions as set out in the original Right to Match Opportunity without any further obligation to the Responding Party as it relates to the original Right to Match Opportunity; and

	(iv)
	If
the Right To Match Opportunity Service Term exceeds three (3) months, Sections 7.2(b)(x)(5)(i) and 7.2(b)(x)(5)(ii) above shall only apply to the remaining
estimated Category 2 Services traffic after deducting the Category 2 Services traffic actually sent to the Responding Party in each three (3) month period complying with the terms
of the Right to Match Opportunity. (For example, if the original term of a Right to Match Opportunity was 12 months and the original traffic estimate was 24 million minutes. If after
8 months and 12 days the ***, the first 6 months of traffic sent to the Responding Provider under the Right to Match will be debited against the Issuing Party's Right to Match
Allocation and the remaining traffic under the original estimate will be subject to the Penalty and Adjustment set forth in Sections 7.2(b)(x)(6)(i) and 7.2(b)(x)(6)(ii) above.

	

	for
greater certainty, the Adjustment or Penalty shall not apply in cases of:

	

	Exceptional
Market Events;

	ii.
	Force
Majeure; or

	iii.
	unanticipated
abnormal traffic patterns (e.g., time of day distribution).

	

	Reasonable
evidence of the foregoing exceptions shall be provided by the Issuing Party, if requested by the Responding Party, on a case—by case
basis. For greater certainty, if in the event that the Penalty or the Adjustment pursuant to Section 7.2(b)(ix)(6)(i)i does not apply, the Issuing Party's Right to Match Allocation shall be
debited as per Sections 7.2(b)(ix)(1) and 7.2(b)(ix)(2) hereof, as the case may be. 

	***
	Portions
hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 406
of the Securities Act of 1933, as amended. 

67

  

	(xi)
	If
the Right to Match Opportunity includes *** traffic, the Issuing Party shall provide sufficient detail (as part of the Required Information) to enable the Responding Party to
determine whether to match either (a) the exact terms and conditions of the Right to Match Opportunity, including but not limited to matching the terms and conditions set forth in the Right to
Match Opportunity as such relate to the *** traffic, or (b) the rate set out in the Right to Match Opportunity only as it relates to the *** traffic.

	

	In
the event that the Responding Party accept the Right to Match Opportunity, under (a), the Issuing Party shall value any *** traffic from the Responding
Party on a full and equal basis to the value placed on the *** traffic from a Competing Provider. In instances where *** traffic is valued in such a way as to make the effective rate for the ***
traffic lower than the rate then applicable pursuant to Article 7 of the Master Agreement, the Responding Party shall either debit its Right to Match Right Allocation or Flex Right Allocation
by the full amount of *** traffic set out in the Right to Match Opportunity in accordance with Sections 5.1.1(a) or 5.2.1(b) hereof. For greater certainty, the Issuing Party shall assign equal costs
to the *** traffic from the Responding Party and Competing Providers. The Issuing Party shall pay the effective rate for any *** traffic and the Responding Party shall pay to the Issuing Party the
rate equal to the value placed on the *** traffic by the Issuing Party. For greater certainty, any traffic sent in excess of the original Category 2 Services traffic volume set out in the Right
to Match Opportunity will be rated in accordance with Article 7 of the Master Agreement as amended by this First Amendment. The Parties also agree to deliver in writing within thirty
(30) days of execution of this First Amendment a mutually agreed upon example in support of the rights and obligations set forth within this Section 7.2(b)(xi).

	7.3
	Rights; Certification.    For the purposes of calculating and controlling either Party's Right to Match and Flex Allocations,
each Party agrees to prepare written reports, certified by an officer, and send such certified reports to the other Party, as follows:

	(a)
	On
a quarterly basis, for Category 1 Services:

	(i)
	a
list identifying each circuit procured by the Issuing Party during the quarter with the following information for each circuit:

	(1)
	price
paid;

	(2)
	term/termination;

	(3)
	confirmation
that actual SLAs/SLOs applicable to any listed circuit match exactly those offered in the RFQ;

	(4)
	confirmation
that actual final configuration matches exactly the configuration offered in the RFQ; and

	(5)
	actual
delivery interval (to be identified in the quarter in which the circuit is delivered).

	(b)
	On
a quarterly basis, for Category 2 Services:

	(i)
	the
total actual traffic (with separate amounts routed under Flex and Right to Match), on a route by route basis, routed by a Party as a result of such Party having exercised its
Rights, expressed in dollars, being the product of such total actual traffic multiplied by the the rates used in the determination of Allocations pursuant to Sections 5.1.1(a) and 5.2.1(b), as the
case may be; and 

	***
	Portions
hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 406
of the Securities Act of 1933, as amended. 

68

 

	(ii)
	on
a route by route basis, the actual traffic, actual measured quality,,actual rate paid and actual return traffic received (if applicable) for each Right to Match Opportunity not
accepted by the Supplier.

	7.4
	Dispute.    In the event that any disagreement or dispute between Responding Party and the Issuing Party arises with respect
to a response from a Competing Provider, the Responding Party and the Issuing Party shall jointly nominate a commercial arbitrator having recognized knowledge in the international telecommunications
industry that shall render, within ten (10) Business Days, a final and binding opinion on the suitability and completeness of the Competing Provider's response pursuant to this
Section 7. 

8.     PRICING PRINCIPLES  

	8.1
	IP Transit Price Reduction.    Notwithstanding Article 7.1 of the Master Agreement, with respect to Teleglobe IP
Transit Services, from the Effective Date, (the "IP Reduction Date"), Teleglobe shall charge Bell Canada a rate of US$*** per Mb for all traffic delivered directly to a Teleglobe router by Bell Canada
or any Bell Canada Customer connected directly to a Teleglobe router, with the exclusion of ***, which shall be charged in accordance with Section 5.1.2 (a) (i) hereof. Such rate shall
be reduced further to US$*** per Mb effective ninety (90) days after the Effective Date (the "New IP Transit Rates"). Without limiting the generality of the foregoing, on the annual anniversary
of the Effective Date during the remaining Term of the Master Agreement as amended pursuant to this First Amendment, the rates for IP Transit Services shall be reviewed and adjusted to the ***:
(1) the applicable New IP Transit Rates; or (2) a rate determined on the basis of ***. For greater certainty the Most Favored Service Purchaser Assumptions set out in the Master
Agreement shall no longer apply to the IP Transit Services as of the Effective Date.

	8.2
	IDDD Outbound Services Price Reduction.    With respect to IDDD Outbound Services, the Parties agree as follows:

	(a)
	The
Teleglobe wholesale price list for IDDD Outbound Services attached hereto as Schedule 1 shall apply from the Effective Date to Teleglobe IDDD Outbound Services provided to
the Wholesale Customers of Bell Canada, provided that such Wholesale Customers are either directly connected to Teleglobe switches or connected to Teleglobe through designated wholesale trunks, where
each Wholesale Customer has been preidentified by Bell Canada and agreed to by Teleglobe, provided that each Party acts in a commercially reasonable manner. (For greater certainty, such wholesale
price list set out in Schedule 1 shall also include the rate reduction contemplated in Section 8.2(c) hereof).

	(b)
	The
Teleglobe retail price list for IDDD Outbound Services attached hereto as Schedule 2 shall be applied to all traffic, other than traffic generated by Bell Canada Wholesale
Customers, received directly from a Bell Canada switch from the Effective Date.

	(c)
	Teleglobe
shall grant Bell Canada a rate reduction, such that the application of rates set out in Schedule 1, to the Bell Canada Wholesale Traffic in January 2003,
(which shall include promos and mobile, but shall exclude Cuba traffic) shall result in a saving of US$100,000 from the rates applied by Teleglobe in January 2003 to such Bell Canada Wholesale
Traffic.

	(d)
	The
Parties shall continue to cooperate on a commercially reasonable basis, from time to time, acting reasonably, to develop wholesale special events pricing (e.g. promos etc.) on a
case-by-case basis. 

	***
	Portions
hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 406
of the Securities Act of 1933, as amended. 

69

 

	(e)
	Retroactive
to January 1, 2003 and from and after the Effective Date, Teleglobe shall no longer charge Bell Canada for DS-1 port connections and, to that end,
Teleglobe agrees to credit or reimburse Bell Canada for any charges applicable for DS-1 port connections, incurred by Bell Canada from and after January 1, 2003.

	(f)
	Teleglobe
agrees to use commercially reasonable efforts to assist Bell Canada in reducing rates arising out of the contractual obligations of Bell Canada pursuant to the Convergia
Agreement.

	(g)
	In
no event shall the Teleglobe rates for IDDD Outbound Services (retail and wholesale traffic) offered to Bell Canada, in the aggregate, exceed retail rates applicable as of the
Effective Date.

	(h)
	For
avoidance of doubt and without limiting the foregoing, nothing herein shall be construed as to result in termination of the obligations of Teleglobe to continue to provide the
Teleglobe IDDD Services in accordance with Article 7 of the Master Agreement.

	(i)
	For
avoidance of doubt, the prices for Category 2 Services provided by the Responding Party in response to a particular Right to Match Opportunity shall not be considered the
Most Favored Service Purchaser price under Article 7 of the Master Agreement unless the Responding Party provides any Category 2 Services to any third party at the rates set out in a
Right to Match Opportunity.

	8.3
	***  ISDN.    The Parties agree to *** as of January 1, 2004 for ISDN Services and to develop, jointly, effective from
the Effective Date, for 2003 and subsequent calendar years, a rate table applicable to the traffic volume in excess of the ISDN traffic volume generated in 2002 ("ISDN Base Traffic"). For avoidance of
doubt, and without limiting the foregoing, nothing herein shall be construed as to result in termination of the obligations of Teleglobe to continue to provide the ISDN Services in accordance with
Article 7 of the Master Agreement.

	8.4
	Canada Direct Service ***.    With respect to Canada Direct Service, Teleglobe shall *** the
applicable *** as follows:

	(a)
	retroactively
to January 1, 2003, by *** in 2003, applicable on all routes, such *** being reflected as part of the *** set forth in Schedule 3 attached hereto;

	(b)
	in
each of 2004, 2005, 2006 and 2007, effective on the first day of each calendar year, by ***, applicable on all routes (with such *** applicable to ***, as well, in 2004 and 2006),
on the *** to the Canada Direct Service then applicable as of the last day of each preceding calendar year; and

	(c)
	in
addition to the foregoing, Article 7.1 of the Master Agreement shall continue to apply on a route by route basis.

	8.5
	Home Country Direct ***.    With respect to Home Country Direct, Bell Canada shall *** the applicable
*** as follows:

	(a)
	retroactively
to January 1, 2003, by *** in 2003, applicable on all routes such reduction being reflected as part of the rates set forth in Schedule 4 attached hereto;

	(b)
	in
each of 2004, 2005, 2006 and 2007, effective on the first day of each calendar year, by ***, applicable on all routes(with such *** applicable to ***, as well, in 2004 and 2006),
on the *** to the Home Country Direct Service then applicable as of the last day of each preceding calendar year; and

	(c)
	in
addition to the foregoing, Article 7.1 of the Master Agreement shall continue to apply. 

	***
	Portions
hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 406
of the Securities Act of 1933, as amended. 

70

 

9.     MISCELLANEOUS  

	9.1
	Notice.    For the purposes of Article 13.5 of the Master Agreement and this First Amendment the following are the
Parties' respective addresses for the purpose of notice: 

	If to Teleglobe:
	

Teleglobe Canada ULC

1000 de 1a Gauchetiere Street West,

Montreal, Quebec,

H3B 4X5

Attention: Liam Strong, Chief Executive Officer

Facsimile: (514) 868-7715
	

Copy to:
	

Teleglobe Canada ULC

185 The Westmall, Suite 629

Toronto, Ontario

M9C 5L5

Attention: J.P. Gratton, Vice President, Americas

Facsimile: (416) 287-5488
	

If to Bell Canada:
	

President—Network Operations

Floor 6N, 483 Bay Street

Toronto, Ontario

M5G 2C9
	

Facsimile: (416) 597-3300
	

Copy to:
	General Counsel

Legal Department

Floor 5N, 483 Bay Street

Toronto, Ontario

M5G 2C9
	

Facsimile: (416) 260-1674

	9.2
	Order of Precedence.    In the event of any conflict or inconsistency among or between the terms of this First Amendment, the
Master Agreement, and any Specific Services Agreement, the following shall control, in descending order of precedence: (1) this First Amendment; (2) the applicable Specific Services
Agreement; and (3) the Master Agreement. The Parties agree that the terms and provisions of the Bell Order continue in full force and effect, and that nothing contained in this First Amendment
is intended to, or shall, effect the application of the terms of the Bell Order to the Parties.

	9.3
	Counterparts.    This First Amendment may be executed in as many counterparts as may be required, each of which when
delivered is an original but all of which taken together constitute one and the same instrument.

	

	Representations, Warranties and Effect of Assignment.    As to this First Amendment, each
represents and warrants to the other that such Party is the Party entitled to the rights, and benefits, and is subject to the obligations and liabilities, of the Master Agreement, and as such, each
has the right, on a valid and enforceable basis, to enter into this First Amendment, and to agree with the other 

71

 

Party
as set out in this First Amendment. Each of the Parties hereto represents to the other that this First Amendment is valid and binding, enforceable against it in accordance with its terms, and
that this First Amendment shall, from and after the date hereof, be read together with the Master Agreement, such that this First Amendment shall fully amend, supplement, the Master Agreement, to the
extent provided hereunder. Teleglobe hereby represents and warrants in favour of Bell Canada that the Closing has occurred, and that Teleglobe has, as a consequence of the terms of the Purchase
Agreement, the completion of the Closing, and the Bell Order has had assigned to it and assumed the Master Agreement pursuant to Paragraph 2(b) of the Bell Order and has assumed all covenants,
obligations, conditions, liabilities, provisos and other commitments of Teleglobe Inc. under the Master Agreement, and shall be otherwise subject to all the requirements of Teleglobe therein
arising as if Teleglobe were an original signatory to the Master Agreement. 

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

	TELEGLOBE CANADA ULC	 	BELL CANADA
	Per:	 	/s/  LIAM GERALD STRONG      
	 	Per:	 	/s/  DAVID A SOUTHWELL      

	

Name:	
 	

Liam Gerald Strong
	
 	

Name:	
 	

David A. Southwell

	 	 	C.E.O.
	 	Title:	 	President Network Operations

72

  

SECOND AMENDMENT TO

MASTER WHOLESALE PRICING AND SERVICES COORDINATING AGREEMENT  

        THIS SECOND AMENDMENT TO THE MASTER WHOLESALE PRICING AND SERVICES COORDINATING AGREEMENT (this "Second
Amendment") dated January 9th, 2004, with effect as to certain agreements contained herein as of January 1st 2004 (the "Effective Date") is made 

	
BETWEEN:	
 	
TELEGLOBE CANADA ULC, an amalgamated unlimited liability company amalgamated under the laws of the Province of Nova Scotia, having an office at 1000 rue de la Gauchetiere, Montreal, Quebec,
Canada ("Teleglobe");
	
AND:	
 	
BELL CANADA, a Canadian corporation incorporated under the laws of Canada having an office at 483 Bay Street, Floor 6N, Toronto, Ontario, Canada ("Bell
Canada");

RECITALS:  

        WHEREAS Teleglobe and Bell Canada have entered into a Master Wholesale Pricing and Services Coordinating Agreement
(the "Master Agreement") dated January 1st 2001, as amended effective April 1th, 2003 (the
"First Amendment"); and 

        WHEREAS IDDD Outbound Services, Canadian Switched Minute Terminations and US Switched Minute Terminations are to be provided between the
Parties under the terms of the Master Agreement as amended by the First Amendment and provided for herein; and 

        WHEREAS Teleglobe and Bell Canada wish to modify certain terms and conditions as the same relate to the rates that Bell Canada and
Teleglobe are required to pay for certain IDDD Outbound Services, Canadian Switched Minute Terminations and US Switched Minute Terminations; 

        NOW THEREFORE, THIS SECOND AMENDMENT WITNESSETH that in consideration of the covenants and agreements hereinafter contained, and for other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by each of the Parties hereto, the Parties hereto covenant and agree as follows: 

1.     DEFINITIONS  

        Terms having initial capital letters and capitalized terms used, but not otherwise defined in this Second Amendment, including its recitals, shall have the
respective meanings set out in the Master Agreement or the First Amendment, Certain terms having Initial capital letters and capitalized terms used in this Second Amendment are defined in the context
in which they appear and shall have the respective meanings there indicated. 

        In
this Second Amendment, including its recitals, unless otherwise defined or unless the context otherwise requires, the following terms shall have the following meanings: 

        "Base Rate" has the meaning set forth in Section 2.3.1.2 hereof. 

        "Bilateral Quality" shall mean the standard of quality reasonably expected from any telecommunications carrier that has a network managed
by a Network Operations Center twenty four (24) hours per day and seven (7) days per week, has the ability to re-route and fall-back traffic in the event of
congestion or failure, has redundancy in terminating locations and offers 

73

 

acceptable
levels of quality relative to Tier 1 carriers standards, which includes without limitation ASR levels. 

        "Conversation Minute" shall mean a minute of communication resulting from a completed connection between the calling number and the called
number. The duration of each Conversation Minute shall be measured in actual seconds of Conversation Time. 

        "Conversation Time" shall mean the interval that elapses between (a) the moment when the reply condition (answer signal in the
backward direction) is detected at the point where the recording of the call duration takes place, and (b) the moment when the clear forward condition (clear forward signal) is detected at the
same point, rounded to the nearest second. 

        "Designated Routes" means the designated routes set out in Appendix 2 attached hereto. 

        "High Cost Serving Areas" means the Non-Regional Bell Operating Companies (Non-RBOC) and USA NPA/NXXs listed as
part of the Local Exchange Routing Guide ("LERG") database, which is the official North American database managed by the North American Numbering Plan Administrator. 

        "High Cost Serving Areas Threshold" has the meaning set out in Section 2.3.1.4 hereof. 

        "Parties" means Bell Canada and Teleglobe. 

        "Party" means either Bell Canada, or Teleglobe as the context requires. 

        "Shortfall Charge" has the meaning set forth in Section 2.3.1.2 hereof. 

        "Term" means commencing on January 1st, 2004 and terminating on December 31st, 2004. 

        "US Switched Minute Terminations" has the meaning set forth in Section 2.3.1.2 hereof. 

        "Valid U.S. Traffic" shall consist only of direct dialed (1+) calls terminating in U.S. NPAs (excluding U.S. Virgin Islands,
Puerto Rico, Guam, Hawaii and Alaska). For greater certainty, (i) calls to NXXs 555 and 976, (ii) calls to NPAs 900, 800, 877, 866 and other toll-free numbers,
(iii) ISDN traffic, and (iv) billed calling card calls, reverse billed collect calls, reverse billed calls, billed to third party calls and operator handled calls are not Valid U.S.
Traffic, and any such calls shall be routed to vacant numbers and shall receive an overflow (fast busy) tone. 

        "Volume Commitment" shall have the meaning set out in Section 2.3.1.2 hereof. 

2.     SERVICES  

	2.1
	Teleglobe
and Bell Canada shall provide the IDDD Outbound Services, Canadian Switched Minute Terminations and US Switched Minute Terminations under the terms and conditions as set out
in the Master Agreement and the First Amendment, as applicable, except as modified as follows:

	2.2.1
	Switched Minute Terminations in Canada.    During the Term the Parties agree as follows:

	2.2.1.1
	Article A
of Schedule 3(e) of the Master Agreement, dated November 20th, 2002, is hereby deleted in its entirety and replaced with
Article A as set out in Appendix 1, attached hereto.

	2.2.1.2
	Notwithstanding
the terms of the First Amendment applicable to the Right To Match Right and the Flex Right, Teleglobe hereby agrees to fulfull all its requirements for *** in ***
exclusively with Bell Canada pursuant to the terms and conditions set out in Appendix 1 attached hereto. 

        ***  Portions
hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with
Rule 406 of the Securities act of 1933, as amended. 

74

 

	2.3.1
	Switched Minute Terminations in the US.    During the Term the Parties agree as follows:

	2.3.1.1
	Article B
of Schedule 3(e) of the Master Agreement, dated November 20th, 2002, is hereby deleted in Its entirety.

	2.3.1.2
	During
the Term, Teleglobe further agrees to send Bell Canada *** Conversation Minutes ("Volume Commitment") of *** ("***  Switched Minute Terminations"). In
consideration for the foregoing, Bell Canada shall apply a per minute rate of *** (CA$) (in this
Section 2.3.1.2 the "Base Rate") to each Conversation Minute. In the event that Teleglobe fails to meet the foregoing Volume Commitment, Bell
Canada shall apply, as liquidated damages and not as a penalty, a rate of *** (CA$) per minute, against the total of Conversation Minutes equal to the Volume Commitment less the actual Conversation
Minutes of *** Switched Minute Terminations terminated by Bell Canada during the Term of this Second Amendment ("Shortfall Charge").

	2.3.1.3
	For
greater certainty, and without limiting anything set out in Section 2.3.1.2 above, the Parties agree that per call rating will be done using an initial six-
(6-) second minimum time followed by one- (1-) second increments of conversation time, rounded up to the nearest one- (1-) second increment.

	2.3.1.4
	Teleglobe
agrees that no more than 35% of the total *** Switched Minute Terminations traffic delivered during any given calendar month (and no more than 30% over the Term of this
Second Amendment) ("High Cost Serving Areas Threshold") shall be for termination to High Cost Serving Areas. Bell Canada shall, in addition to the Base
Rate, levy a surcharge of *** (CA$) per Conversation Minute on each Conversation Minute terminated in the High Cost Serving Areas which is above the High Cost Serving Areas Threshold. For greater
certainty, the Parties agree that all *** above the High Cost Serving Areas Threshold shall apply towards the Volume Commitment.

	2.3.1.5
	Notwithstanding
any other provision of this Second Amendment, Bell Canada shall have the right to adjust the Base Rate, from time to time, upon providing twenty
(20) Business Days written notice to Teleglobe ("Adjustment Notice"). In the event that Teleglobe is not satisfied with the Adjustment Notice, Teleglobe shall be relieved of its obligation to
meet the Volume Commitment without incurring any Shortfall Charges, by providing written notice to Bell Canada within ten (10) Business Days from the date of Teleglobe's receipt of the
Adjustment Notice. If Teleglobe does not provide any such notice to Bell Canada within ten (10) Business Days from the date of Teleglobe's receipt of the Adjustment Notice, Teleglobe is deemed
to have accepted any adjustment to the Base Rate as specified in the Adjustment Notice.

	2.3.1.6
	All
*** Switched Minute Terminations traffic sent by Teleglobe to Bell Canada shall be routed by Bell Canada at Bilateral Quality. In addition to the foregoing, Bell Canada shall
use reasonable efforts to provide Calling Line Identification ("CLI") for such traffic, however, Bell Canada shall not guarantee that such features shall apply to all ***.

	2.3.1.7
	Bell
Canada may, at its discretion, net the payment from Teleglobe for *** Switched Minute Terminations against Bell's payables to Teleglobe for services pursuant to a Specific
Services Agreement or the Master Agreement.

	2.4.1
	IDDD Outbound Service.    During the Term, and notwithstanding the terms and conditions set forth in the Master Agreement
and the First Amendment, the Parties hereby agree:

	2.4.1.1
	With
respect to IDDD Outbound Services for the Designated Routes, Teleglobe shall not charge Bell Canada, during the Term, rates in excess of the rates set out in
Appendix 2 attached hereto. For greater certainty, the parties agree that Section 7 of the 

75

 

Master
Agreement shall continue to apply with respect to the rates applicable for the Designated Routes. 

	2.4.1.2
	All
IDDD Outbound Services traffic sent by Bell Canada to Teleglobe on the Designated Routes shall continue to be routed by Teleglobe at Bilateral Quality.

	2.4.1.3
	For
greater certainty IDDD Outbound Services traffic sent by Bell Canada to the Designated Routes at the rates identified in Appendix 2, shall not be debited from Bell's
Flex Right Allocation or Right To Match Right Allocation. 

3.     GENERAL  

	3.1
	In
the event of any conflict or inconsistency among or between the terms of this Second Amendment, the First Amendment, the Master Agreement, and any Specific Services Agreement, the
following shall control, in descending order of precedence: (1) this Second Amendment; (2) the First Amendment; (3) the applicable Specific Services Agreement; and (4) the
Master Agreement.

	3.2
	No
course of dealing or failure of either party to enforce any provision of this Agreement shall be construed as a waiver of such provisions or any other rights under this Agreement.
If any of the provisions of this Agreement shall be invalid or unenforceable, such invalidity or unenforceability shall not invalidate or render unenforceable the entire Agreement but rather the
entire Agreement shall be construed as if not containing the particular invalid or unenforceable provision or provisions and the rights and obligations of the parties shall be construed and enforced
accordingly.

	3.3
	This
Second Amendment may be executed in as many counterparts as may be required, each of which when delivered is an original but all of which taken together constitute one and the
same instrument. 

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

	TELEGLOBE CANADA ULC	 	BELL CANADA
	

Per:	
 	

/s/  DENIS ARCHAMBAULT      
	
 	

Per:	
 	

/s/  MARK HANLON      

	

Name:	
 	

DENIS ARCHAMBAULT
	
 	

Name:	
 	

MARK HANLON

	

Title:	
 	

VP GTM
	
 	

Title:	
 	

VP CSG February 27, 2004

76

 
 
 

APPENDIX 1    
    

SCHEDULE 3(e) (revised January 1, 2004)  

MFSP Pricing—Terminations in Canada  

	A.
	TERMINATIONS IN CANADA—ASSUMPTIONS
	•
	Terminations
in Canada include the following Services:

	•
	Switch
Minute Terminations (in Canada)

	•
	IDDD

	•
	ISDN

	•
	IVPN
Terminations (in Canada)

	•
	Toll-Free
(ITFS/UIFN) (Canadian Originating)

	•
	MFSP
pricing will be updated on a periodic basis and effective upon five- (5-) Business Days notice.

	•
	All
rates in CA$.

	•
	All
billing and rates expressed on a per minute basis.

	•
	Invoicing
by Bell will be provided as measured services for all Services in Appendix 1.

 

	1)
	SWITCH MINUTE IDDD & ISDN TERMINATIONS (IN CANADA) MFSP RATES (as of January 1, 2004) 

	NPA
 
	 	Bell NPAs

ON/QC
	 	Rate/Minute

(CA$)

	204	 	 	 	$***
	250	 	 	 	$***
	289	 	 	 	$***
	306	 	 	 	$***
	403	 	 	 	$***
	416	 	ON	 	$***
	418	 	QC	 	$***
	450	 	QC	 	$***
	506	 	 	 	$***
	514	 	QC	 	$***
	519	 	QC	 	$***
	604	 	 	 	$***
	613	 	ON	 	$***
	647	 	ON	 	$***
	705	 	ON	 	$***
	709	 	 	 	$***
	778	 	 	 	$***
	780	 	 	 	$***
	807	 	ON	 	$***
	819	 	QC	 	$***
	867	 	 	 	$***
	902	 	 	 	$***
	905	 	ON	 	$***

	*
	For traffic volumes (IDDD and ISDN combined) above ***% to Independent Companies, a surcharge of $*** (CA$) per minute will apply.

77

 

Operator Handled Sent Paid Switch Minute Terminations (in Canada)  

        An average switched termination rate applicable to Operator Handled Sent Paid Inbound Traffic will be established every quarter by Bell Canada based on Operator
Handled traffic terminating to Canadian NPA's during the 3-month interval and the Switched Minute Termination rates identified above. The applicable average switched termination rate is
determined by the actual call date the Operator Handled Sent Paid Inbound call transpired. 

	2)
	IVPN TERMINATIONS (IN CANADA) MFSP RATES
  (as of January 1, 2002) 

	IVPN

Rate / Minute

(CA$)
	 

	$***	 

	3)
	TOLL-FREE (ITFS/UIFN) (CANADIAN ORIGINATING) MFSP RATES
  (as of January 1, 2002) 

	Toll Free

Rate / Minute

(CA$)
 
	 	Toll Free

Rate / Message

(CA$)

	$***	 	$***

	TELEGLOBE CANADA ULC	 	BELL CANADA
	

Per:	
 	

/s/  DENIS ARCHAMBAULT      
	
 	

Per:	
 	

/s/  MARK HANLON      

	

Name:	
 	

DENIS ARCHAMBAULT
	
 	

Name:	
 	

MARK HANLON

	

Title:	
 	

VP GTM
	
 	

Title:	
 	

VP CSG February 27, 2004

        ***  Portions
hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with
Rule 406 of the Securities act of 1933, as amended. 

78

 
 
 

APPENDIX 2    
    

MFSP Maximum Pricing Guarantees for Designated Routes  

	Designated Route
	 	Rate / Minute (US$)

	Germany	 	$	***
	France	 	$	***
	Italy	 	$	***
	United Kingdom	 	$	***

	•
	Note:
rates do not apply to mobile end VAS (Value Added Services i.e., Audiotext, Special Services, etc.) terminations. 

	TELEGLOBE CANADA ULC	 	BELL CANADA
	

Per:	
 	

/s/  DENIS ARCHAMBAULT      
	
 	

Per:	
 	

/s/  MARK HANLON      

	

Name:	
 	

DENIS ARCHAMBAULT
	
 	

Name:	
 	

MARK HANLON

	

Title:	
 	

VP GTM
	
 	

Title:	
 	

VP CSG February 27, 2004

        ***  Portions
hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with
Rule 406 of the Securities act of 1933, as amended. 

79

QuickLinks

SCHEDULE 1 TELEGLOBE SERVICES

SCHEDULE 2 BELL SERVICES

SCHEDULE 3 Most Favoured Service Purchaser (MFSP) Assumptions

SCHEDULE 3(a) MFSP PRICING—IDDD Outbound (Canadian Origination)

SCHEDULE 3(b) MFSP Pricing—Globe Internet (IP Transit)

SCHEDULE 3(c) MFSP Pricing—GIobeAccess64 (ISDN) Outbound (Canadian Origination)

SCHEDULE 3(d) MFSP Pricing—ITFS/UIFN Inbound

SCHEDULE 3(e) MFSP Pricing—Switch Minute Terminations in Canada

APPENDIX 1

APPENDIX 2

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