Exhibit 10.5

THIS WARRANT HAS OR AS APPLICABLE, THE SHARES EVIDENCED BY THIS CERTIFICATE HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY
APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD OR OTHERWISE
TRANSFERRED, PLEDGED OR HYPOTHECATED, NOR WILL ANY ASSIGNEE OR ENDORSEE HEREOF
BE RECOGNIZED AS AN OWNER OR HOLDER HEREOF BY THE COMPANY FOR ANY PURPOSE,
UNLESS AND UNTIL THIS WARRANT IS REGISTERED UNDER SUCH ACT OR AN OPINION OF
COUNSEL SATISFACTORY TO THE COMPANY IS OBTAINED TO THE EFFECT THAT SUCH
REGISTRATION IS NOT REQUIRED.

EXERCISABLE ON OR BEFORE
5:00 P.M., NEW YORK TIME, on
January 20, 2014

No. W-3

WARRANT CERTIFICATE

                    This Warrant Certificate certifies that, for value received,
Lightyear PBI Holdings, LLC having an address at 375 Park Avenue, New York, New
York 10152 (“Holder”), is the registered holder of warrants (the “Warrants”) to
purchase, at any time and from time to time beginning at 12:01 A.M., New York
time, on June 9, 2007 until 5:00 P.M., New York time, on January 20, 2014, up to
1,893,939 fully-paid and non-assessable shares (subject to adjustment in certain
events) of Common Stock, no par value (“Common Stock”), of PRIVATE BUSINESS,
INC., a Tennessee corporation (the “Company”), at the exercise price per share
of $1.32, subject to adjustment in certain events (the “Exercise Price”), upon
surrender of this Warrant Certificate, together with the attached Form of
Election t o Purchase duly executed, and payment of the Exercise Price at the
principal office of the Company, but subject to the terms and conditions set
forth herein and in the Warrant Agreement dated as of December 9, 2005 between
the Company and the Initial Holder (the “Warrant Agreement”).  Notwithstanding
the foregoing, upon a Change in Control (as defined in the Company’s Senior
Subordinated Note due 2010, dated the date hereof (the “Note”)), the Warrant
shall become immediately exercisable.  Payment of the Exercise Price shall be
made, at the option of the Holder (i) in cash, (ii) by wire transfer payable to
the order of the Company, (iii) on a net basis, such that without the exchange
of any funds, the Holder receives that number of Warrant Shares that would
otherwise be issuable upon a cash exercise of this Warrant less that number of
Warrant Shares having a current market price (as defined in paragraph 3(b) of
the Warrant Agreement) equal to the aggregate Exercise Price that would
otherwise have been paid by such holder for the number of Warrant Shares with
respect to which this Warrant is being exercised or (iv) through a reduction in
the aggregate principal amount of the Note, such that without the exchange of
any funds, such holder receives (a) that number of Warrant Shares determined by
dividing (x) the aggregate principal reduction of the Note (which amount shall
not exceed the amount that would result in the issuance of that number of
Warrant Shares that remain available for exercise pursuant to this Warrant
Agreement) by (y) the Exercise Price, together with a replacement note having
equivalent terms as the Note but having a principal amount equal to the
principal amount plus accrued interest outstanding under the Note prior to such
exchange minus the dollar amount equal to the aggregate Exercise Price that
would otherwise have been paid by such holder for the number of Warrant Shares
with respect to which such Warrant is being exercised.

i

                    If the Company shall repay all or any portion of the Note
(the Repayment Amount”) on or prior to the date that is 18 months from the date
hereof, the number of Warrant Shares purchasable upon exercise of the Warrant
shall be reduced by a number determined by dividing (i) the product of (x) the
Repayment Amount and (y) 0.5 and (z) 0.5 by (ii) the Exercise Price.

                    This Warrant may be exercised at such times and in such
amounts as are provided for in the Warrant Agreement.  Each Warrant not
exercised on or prior to January 20, 2014 shall become invalid and all rights
hereunder, and all rights in respect thereof under the Warrant Agreement, shall
cease as of that time.

                    The Warrants evidenced by this Warrant Certificate are
issued pursuant to the Warrant Agreement, which Warrant Agreement is hereby
incorporated by reference in and made a part of this instrument and is hereby
referred to for a description of the rights, limitation of rights, obligations,
duties and immunities thereunder of the Company and the holders (the words
“holders” or “holder” meaning the registered holders or registered holder) of
the Warrants.  A copy of the Warrant Agreement may be obtained by the holder(s)
hereof upon written request directed to the Company.

                    The Warrant Agreement provides that upon the occurrence of
certain events, the Exercise Price and the type and/or number of the Company’s
securities issuable upon exercise of the Warrants may, subject to certain
conditions, be adjusted.

                    Upon due presentment for registration of transfer of this
Warrant Certificate at the principal office of the Company, a new Warrant
Certificate or Warrant Certificates of like tenor and evidencing in the
aggregate a like number of Warrants shall be issued to the transferee(s) in
exchange for this Warrant Certificate, subject to the limitations provided
herein and in the Warrant Agreement, without any charge except for any tax or
other governmental charge imposed in connection therewith which is not payable
by the Company pursuant to paragraph 9 of the Warrant Agreement.

                    Upon the exercise of less than all of the Warrants evidenced
by this Certificate, the Company shall forthwith issue to the holder hereof a
new Warrant Certificate representing such numbered of unexercised Warrants.

                    The Company may deem and treat the registered holder(s)
hereof as the absolute owner(s) of this Warrant Certificate (notwithstanding any
notation of ownership or other writing hereon made by anyone), for the purpose
of any exercise hereof and of any distribution to the holder(s) hereof and for
all other purposes, and the Company shall not be affected by any notice to the
contrary.

                    All terms used in this Warrant Certificate which are not
defined herein and are defined in the Warrant Agreement shall have the meanings
assigned to them in the Warrant Agreement.

ii

                    IN WITNESS WHEREOF, the Company has caused this Warrant
Certificate to be duly executed under its corporate seal.

Dated:  December 9, 2005

 

 

 

 

 

 

PRIVATE BUSINESS, INC.

 

 

 

 

 

 

 

By:

 

 

 

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Name:

 

 

Title:

 

 

[WARRANT W-3 SIGNATURE PAGE]

(To be executed by the registered holder if such holder
desires to transfer the Warrant Certificate.)

                    FOR VALUE RECEIVED, ________________________ hereby sells,
assigns and transfers unto ________________________________, whose address is
__________________________, this Warrant Certificate, together with all right,
title and interest therein, and does hereby irrevocably constitute and appoint
___________________________, Attorney to transfer the within Warrant Certificate
on the books of the within-named Company, with full power of substitution.

Dated:

Signature:

 

 

 

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(Signature must conform in all respects to name of holder as specified on the
face of the Warrant Certificate.)

 

 

 

 

 

 

 

 

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(Insert Social Security or Other
Identifying Number of Holder)

                    The undersigned hereby irrevocably elects to exercise the
right, represented by this Warrant Certificate, to purchase ________________
shares of Common Stock and herewith: (choose one by marking “X” in the space
provided)

                     o tenders payment for such shares, to the order of PRIVATE
BUSINESS, INC., in the amount of $________ in accordance with the terms of the
Warrant Agreement.

                     o requests that such exercise be on a net basis in
accordance with the terms of the Warrant Agreement.

                     o requests that such exercise be through a reduction in the
aggregate principal amount of the Company’s Senior Subordinated Note Due 2010,
dated the date hereof in accordance with the terms of the Warrant Agreement.

                    The undersigned requests that a certificate for such shares
of Common Stock be registered in the name of
_________________________________________, whose address is
_____________________________________________ and that such certificate be
delivered to _______________________________________ whose address is
__________________________________________________.

Dated:

Signature:

 

 

 

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(Signature must conform in all respects to name of holder as specified on the
face of the Warrant Certificate.)

 

 

 

 

 

 

 

 

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(Insert Social Security or Other
Identifying Number of Holder)