Document:

exv10w43

EXHIBIT 10.43

NONQUALIFIED STOCK OPTION AGREEMENT

UNDER THE

NEUSTAR, INC. 1999 EQUITY INCENTIVE PLAN

          THIS AGREEMENT, made as of December 18, 2003 (the “Effective Date”), by and between NeuStar,
Inc., a Delaware corporation (the “Company”), and Martin Lowen (the “Participant”).

WITNESSETH:

          WHEREAS, the Company desires to afford the Participant the opportunity to acquire an ownership
of the Company’s common stock, par value $.002 per share (“Common Stock”), so that he may have a
direct proprietary interest in the Company’s success.

          NOW, THEREFORE, in consideration of the covenants and agreements herein contained, the
parties hereto hereby agree as follows:

     1. Grant of Option. Subject to the terms and conditions set forth herein and in the
Company’s 1999 Equity Incentive Plan, as restated as of March 13, 2002 (the “Plan”), the Company
hereby grants to the Participant, during the period commencing on the date of this Agreement and
ending on December 18, 2013 (the “Expiration Date”), the right and option (the right to purchase
any one share of Common Stock hereunder being an “Option”)
to purchase from the Company 35,487
shares of Common Stock. The Options shall have an exercise price of
$9.00 per share, which
represents the Fair Market Value per share of the Common Stock as of the date hereof.

     2. Limitations
on Exercise of Options. Subject to the terms and conditions set forth
herein and the Plan, the Options shall vest and become exercisable, on a cumulative basis, with
respect to 40% of the shares on December 18, 2005, and with respect to 1.667% of the shares on the
last day of each succeeding calendar month thereafter so long as the Participant continues in the
Service of the Company; provided, however, the Participant may not exercise any Option for
fractional shares of Common Stock. The Committee or the Board may accelerate the vesting and
exercisability of any or all of the then-unvested Options at any time.

     3. Termination of Service. (a) If prior to the Expiration Date, the Participant’s
Service with the Company shall terminate by reason of a Normal Termination (as defined in the
Plan), the Options shall remain exercisable until the earlier of the Expiration Date or three (3)
months days after such date of termination (the “Date of Termination”) to the extent the Options
were vested and exercisable as of the Date of Termination.

          (b) If the Participant’s Service with the Company shall cease prior to the Expiration
Date by reason of death or disability, or the Participant shall die or become disabled while
entitled to exercise any of the Options pursuant to paragraph 3(a), the Participant or the
Participant’s legal representative, or, in the case of death, the executor or administrator of the
estate of the Participant or the person or persons to whom the Options shall have been validly
transferred by the executor or administrator pursuant to

1

 

will or the laws of descent and distribution, shall have the right, until the earlier of the
Expiration Date or one year after the date of death or disability, to exercise the Options to the
extent that the Participant was entitled to exercise them on the date of death or disability.

          (c) If, prior to the Expiration Date, the Participant’s Service with the Company is terminated
for “Cause” (as defined in the Plan), (i) unless otherwise provided by the Committee, the Options,
to the extent not exercised as of the Date of Termination, shall lapse and be canceled, and (ii)
all shares of Common Stock received pursuant to an exercise of the Options after such termination,
in contravention of subsection (i) above, may be purchased by the Company at its discretion for the
exercise price of such shares paid by the Participant. If the Participant’s Service relationship
with the Company is suspended pending an investigation of whether the Participant shall be
terminated for Cause, all the Participant’s rights with respect to the Options shall be suspended
during the period of investigation.

          (d) If, prior to the Expiration Date, the Participant’s Service with the Company is terminated
other than for Cause, a Normal Termination, death or disability, the Options, to the extent then
vested and exercisable as of the Date of Termination, shall remain exercisable until the earlier of
the Expiration Date or thirty (30) days after the Date of Termination.

          (e) After the expiration of any exercise period described in any of Sections 3(a) — (d)
hereof, or otherwise upon the Expiration Date, the Options shall terminate together with all of the
Participant’s rights hereunder, to the extent not previously exercised.

     4. Non-Transferable. Except as specifically authorized by the Committee, the
Participant may not transfer the Options except by will or the laws of descent and distribution and
the Options shall be exercisable during the Participant’s lifetime only by the Participant or, in
the event of the Participant’s legal incapacity, his guardian or legal representative. Except as so
authorized, no purported assignment or transfer of the Options, or of the rights represented
thereby, whether voluntary or involuntary, by operation of law or otherwise (except by will or the
laws of descent and distribution), shall vest in the assignee or transferee any interest or right
herein whatsoever.

     5. Adjustments and Corporate Reorganizations; Changes in Organization.

          (a) In accordance with and subject to the applicable terms of the Plan and this
Agreement, the Options shall be subject to adjustment or substitution, as determined by the
Committee in its sole discretion, as to the number, price or kind of Common Stock or other
consideration subject to such Options or as otherwise determined by the Committee in its sole
discretion to be equitable (i) in the event of changes in the outstanding Common Stock or in the
capital structure of the Company by reason of stock dividends, stock splits, reverse stock splits,
recapitalizations, reorganizations, mergers, consolidations, combinations, exchanges, or other
relevant changes in capitalization occurring after the date hereof or (ii) in the event of any
change in applicable laws or any

2

 

change in circumstances which results in or would result in any substantial dilution or
enlargement of the rights granted to, or available for, the Participant. The Committee shall
give the Participant written notice of an adjustment hereunder.

          (b) In the event that the Company undertakes a change in its
organization, including but not limited to a combination of business units, the creation of
a new business unit, the elimination of a business unit, or the acquisition, sale or transfer
of an interest in a business unit, the Options shall be subject to adjustment or substitution
(including but not limited to the substitution of common stock of or other ownership
interest in a Related Entity, other consideration or another Award under the Plan), as to
the number, price or kind of Common Stock or other consideration subject to such
Options or as otherwise determined by the Committee in its sole discretion to be
equitable. For purposes of this Agreement, a “business unit” shall mean any Related
Entity or any division or other unit or group within the Company that the Committee
designates as a “business unit”.

          (c) Subject to the provisions of Section 13(b) of the Plan, in the event of
a Corporate Transaction (as defined below), if the Options evidenced by this Agreement
are not assumed or continued or a substantially equivalent option or right is not
substituted by the surviving corporation, the successor corporation or its parent
corporation, as applicable (the “Successor Corporation”), the Participant shall, as of the
date of the Corporate Transaction, fully vest in and have the right to exercise such
Options as to all shares of Common Stock then subject thereto that would otherwise have
vested and become exercisable during the twelve-month period commencing on the date
of the Corporate Transaction and, subject to the next sentence, unvested Options with
respect to any other shares of Common Stock shall continue to vest as set forth in Section
2. If any Options evidenced by this Agreement are assumed or replaced (and any such
Options shall be considered assumed if the Company in a Corporate Transaction
reaffirms the Options) in connection with a Corporate Transaction and do not otherwise
vest at that time, and if Participant’s Service with the Company is subsequently
terminated within one (1) year following such Corporate Transaction, unless such Service
is terminated by the Successor Corporation for Cause or by the Participant voluntarily
without Good Reason (as defined below), the Participant shall fully vest in and have the
right to exercise the Options as to all shares of Common Stock then subject thereto that,
but for such termination, would have otherwise vested and become exercisable during the
twelve-month period commencing on the effective date of such termination, and unvested
Options with respect to any other shares of Common Stock shall continue to vest as set
forth in Section 2.

          (d) For purposes of this Agreement, a “Corporate Transaction” shall
mean any of the following events:

     (i) The consummation of any merger or consolidation of the Company in which the
Company is not the continuing or surviving corporation, or pursuant to which shares of
Common Stock are converted into cash, securities or other

3

 

property, if following such merger or consolidation the holders of the Company’s
outstanding voting securities immediately prior to such merger or consolidation own less
than a majority of the outstanding voting securities of the surviving corporation.

     (ii) The consummation of any sale, lease, exchange or other transfer in one
transaction or a series of related transactions of all or substantially all of the
Company’s assets, other than a transfer of the Company’s assets to a majority-owned
subsidiary of the corporation.

     (iii) The approval by the holders of the Common Stock of any plan or proposal for
the liquidation or dissolution of the Company.

     (iv) The acquisition by a person, within the meaning of Section 3(a)(9) or of
Section 13 (d)(3) (as in effect on the date of adoption of the Plan) of the Exchange Act of
a majority or more of the Company’s outstanding voting securities (whether directly or
indirectly, beneficially or of record), other than a person who held such majority on the
date of adoption of the Plan. Ownership of voting securities shall take into account and
shall include ownership as determined by applying Rule 13d-3(d)(l)(i) (as in effect on the
date of adoption of the Plan) pursuant to the Exchange Act.

          (e) For purposes of this Agreement, “Good Reason” shall mean, without the Participant’s
prior written consent, any of the following events or conditions and the failure of the Successor
Corporation to cure such event or condition within thirty (30) days after receipt of written notice
from the Participant:

     (i) A substantial diminution or material adverse change in the Participant’s
status, title, position, authority, duties or responsibilities (including reporting
responsibilities) as in effect immediately prior to a Corporate Transaction, except in
connection with the Participant’s termination of Service with the Company for Cause,
disability, death or by the Participant other than for Good Reason.

     (ii) A reduction in the Participant’s annual base salary.

     (iii) The Successor Corporation’s failure to cover the Participant under employee
benefit plans, programs and practices that, in the aggregate, provide substantially
comparable benefits (from an economic perspective) to the Participant relative to the
benefits and total costs under the material employee benefit plans, programs and practices
in which the Participant (and/or his family or dependents) is participating immediately
preceding the Corporate Transaction.

     (iv) The Successor Corporation’s requiring the Participant to be based at any
office location that is more than fifty (50) miles further from the Participant’s office
location immediately prior to a Corporate Transaction; except for reasonable required
travel for the Successor Corporation’s business that is not

4

 

materially greater than such travel requirements prior to such Corporate
Transaction.

     (v) A material breach by the Successor Corporation of its obligations to the
Participant under the Plan.

     6. Exercise: Payment For and Delivery of Common Stock. The Options shall be exercised
by delivering written notice to the Committee stating the number of whole shares of Common Stock to
be purchased, the person or persons in whose name the shares of Common Stock are to be registered
and each such person’s address and social security number. Such notice shall not be effective
unless accompanied by the full purchase price for all shares to be purchased, and any applicable
withholding (as described below). The purchase price shall be payable in cash, in shares of Common
Stock, any combination of cash or shares of Common Stock or such other method of payment as is
authorized by the Plan with the consent of the Committee; provided, however, that
the Participant may use Common Stock in payment of the exercise price only if the shares so used
are considered “mature” for purposes of generally accepted accounting principles (i.e., (i)
been held by the Participant free and clear for at least six (6) months prior to the use thereof to
pay part of an Option exercise price, (ii) been purchased by the Participant in other than a
compensatory transaction, or (iii) meet any other requirements for “mature” shares as may exist on
the date of the use thereof to pay part of an Option exercise price). In the event that all or part
of the purchase price is paid in shares of Common Stock, the shares used in payment shall be valued
at their Fair Market Value on the date of exercise of the Options. At the time of exercise, the
Participant shall pay to the Company, in cash, or by having the Company withhold upon exercise of
the Option a sufficient number of shares of Common Stock otherwise deliverable to the Participant
based on the Fair Market Value of the Common Stock on the date of exercise, at the election of the
Participant, such minimum amount as the Company deems necessary to satisfy its obligation to
withhold Federal, state or local income or other taxes incurred by reason of the exercise or the
transfer of shares thereupon. Payment in currency or by certified or cashier’s check shall be
considered payment in cash.

     7. Rights as Common Stockholder. (a) The Participant or a transferee of the Options
shall have no rights as a stockholder with respect to any shares covered by the Options until he
shall have become the holder of record of such shares (and the Company shall use its reasonable
best efforts to cause the Participant promptly to become the holder of record of such shares), and,
except as provided in Section 5 hereof, no adjustment shall be made for dividends or distributions
or other rights in respect of such shares for which the record date is prior to the date upon which
he shall become the holder or record thereof.

     8. Company; Participant. (a) The term “Company” as used in this
Agreement with reference to employment shall include the Company and its affiliates.

          (b) Whenever the word “Participant” is used in any provision of this Agreement under
circumstances where the provision should logically be construed to apply to the executors, the
administrators, legal representatives or the person or persons

5

 

to whom the Options may be transferred by will or by the laws of descent and distribution, the word
“Participant” shall be deemed to include such person or persons.

     9. Requirements of Law. (a) By accepting the Options, the Participant
represents and agrees for himself and his transferees (whether by will or the laws of
descent and distribution) that, unless a registration statement under the Securities Act of
1933, as amended (the “Act”), is in effect as to shares purchased upon any exercise of the
Options, (i) any and all shares so purchased shall be acquired for his personal account and
not with a view to or for sale in connection with any distribution, and (ii) each notice of
the exercise of any portion of this Option shall be accompanied by a representation and
warranty in writing, signed by the person entitled to exercise the same, that the shares arc
being so acquired in good faith for his personal account and not with a view to or for sale
in connection with any distribution.

          (b) No certificate or certificates for shares of Common Stock may be purchased, issued or
transferred if the exercise hereof or the issuance or transfer of such shares shall constitute a
violation by the Company or the Participant of any (i) provision of any Federal, state or other
securities law, (ii) requirement of any securities exchange listing agreement to which the Company
may be a party, or (iii) other requirement of law or of any regulatory body having jurisdiction
over the Company. Any reasonable determination in this connection by the Board or the Committee,
upon notice given to the Participant, shall be final, binding and conclusive.

          (c) The certificates representing shares of Common Stock acquired pursuant to the exercise of
options shall carry such appropriate legend, and such written instructions shall be given to the
Company’s transfer agent, as may be deemed necessary or advisable by counsel to the Company in
order to comply with the requirements of the Act or any state securities laws.

     10. Notices. Any notice to be given to either party shall be in writing and shall be
given by hand delivery to such party or by registered or certified mail, return receipt requested,
postage prepaid, addressed to the Company in care of its Secretary at its principal office, and to
the Participant at the address given beneath his signature hereto, or at such other address as
either party shall have furnished to the other in writing in accordance herewith. Notice and
communications shall be effective when actually received by the addressee.

     11. Disposition of Common Stock. The Participant agrees to notify the Company, in
writing, within thirty (30) days of any disposition (whether by sale, exchange, gift or otherwise)
of shares of Common Stock purchased under this Agreement.

     12. Binding Effect. Subject to Section 4 hereof, this Agreement shall be binding upon
the heirs, executors, administrators, successors and permitted assigns of the parties hereto.

     13. Plan. The terms and provisions of the Plan are incorporated herein by reference
and made a part hereof as though fully set forth herein. In the event of any conflict or
inconsistency between discretionary terms and provisions of this Agreement, this Agreement shall
govern and control. In all

6

 

other instances of conflicts or inconsistencies or omissions, the terms and provisions of the Plan
shall govern and control. All capitalized terms not otherwise expressly defined in this Agreement
shall have the meaning ascribed to them in the Plan.

     14. Governing Law. This Agreement shall be construed and interpreted in accordance
with the laws of the State of Delaware, without regard to the principles of conflicts of law
thereof.

     15. Entire Agreement. This Agreement, together with the Plan, contains the entire
agreement and understanding between the parties with respect to the subject matter hereof and
supersedes all prior agreements, written or oral, with respect thereto.

          IN WITNESS WHEREOF, the Company has granted this Option on the date of grant specified
above.

          This instrument may be executed in any number of counterparts, each of which shall be
deemed to be an original, and such counterparts together shall constitute one and the same
instrument.

	 	 	 	 	 
	 	NEUSTAR, INC.

 	 
	 	By:  	/s/ Jeffrey Ganek
 	 
	 	 	Name:  	Jeffrey Ganek 	 
	 	 	Title:  	Chairman and Chief Executive Officer 	 
	 

	 	 	 
	ACCEPTED:
	 	 
	 
	 	 
	/s/ Martin Lowen
 

Martin Lowen

	 	 

7

 

NONQUALIFIED STOCK OPTION AGREEMENT AMENDMENT

     This Nonqualified Stock Option Agreement Amendment dated as of June 22, 2004 (this
“Amendment”) is made by and between NeuStar, Inc. a Delaware corporation having its
principal place of business in Sterling, Virginia (the “Company”), and Martin Lowen (the
“Participant”). Capitalized terms not otherwise defined herein shall have the meaning ascribed to
such terms in the Option Agreement (as defined below).

WITNESSETH:

     WHEREAS, Company granted Participant the right and option to purchase from the Company 35,487
shares (the “Option Shares”) of Company’s common stock, par value $.002 per share;

     WHEREAS, Company and Participant entered into an Nonqualified Stock Option Agreement under
the NeuStar, Inc. 1999 Equity Incentive Plan (the “Option
Agreement”) dated December 18, 2003;

     WHEREAS, the Company and Participant desire to amend the Option Agreement to revise the
definitions of “Corporate Transaction” under Section 5(d) thereof and the definition of “Good
Reason” under Section 5(e) thereof as set forth below.

     NOW, THEREFORE, in consideration of the premises and further valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

     1. Amendment to Section 5 (d) and 5(e) of the Option Agreement.
Subject to the terms and conditions set forth herein, Sections 5 (d) and 5(e) of the
Option Agreement are hereby amended and restated in their entirety as follows:

     “(d) For purposes of this Agreement, a “Corporate Transaction”
shall mean any of the following events:

     (i) The consummation of any merger or consolidation of the Company,
if immediately following such merger or consolidation the holders of the
Company’s outstanding voting securities immediately prior to such merger
or consolidation do not own at least a majority of the outstanding
voting securities of the surviving corporation in approximately the same
proportion as they did immediately prior to such merger or
consolidation.

     (ii) The consummation of any sale, lease, exchange or other
transfer in one transaction or a series of related transactions of all
or substantially all of the Company’s assets,

First Amendment to NQ Option Agreement with Optionee

 

 

other than a transfer of the Company’s assets to a majority-owned
subsidiary of the corporation, or to an entity in which the holders of the
majority of the outstanding voting securities of the entity immediately
prior to the transfer own at least the majority of the outstanding
securities immediately after such transfer in approximately the same
proportion as immediately prior to such transfer.

     (iii) The approval by the holders of the Common Stock of any plan or
proposal for the liquidation or dissolution of the Company.

     (iv) The acquisition by a person, within the meaning of Section 3(a)(9) or
of Section 13 (d)(3) of the Exchange Act of a majority or more of the Company’s
outstanding voting securities (whether directly or indirectly, beneficially or of
record), other than a person who held such majority on the date of adoption of
the Plan. Ownership of voting securities shall take into account and shall
include ownership as determined by applying Rule 13d-3(d)(l)(i) pursuant to the
Exchange Act.

     (e) For purposes of this Agreement, “Good Reason” shall mean, without the
Participant’s prior written consent, any of the following events or conditions and the
failure of the Successor Corporation to cure such event or condition within thirty (30)
days after receipt of written notice from the Participant:

	 	(i)	 	A substantial diminution or material adverse
change in the Participant’s status, title, position,
authority, duties or responsibilities (including reporting
responsibilities) as in effect immediately prior to a
Corporate Transaction, except in connection with the
Participant’s termination of Service with the Company for
Cause, disability, death or by the Participant other than for
Good Reason.
	 
	 	(ii)	 	A reduction in the Participant’s annual base salary,
except in connection with an across-the-board salary
reduction of less than ten percent (10%) affecting all
senior executives of the Company.
	 
	 	(iii)	 	The Successor Corporation’s
failure to cover the Participant under employee benefit plans,
programs and practices that, in the aggregate, provide
substantially comparable benefits (from an economic perspective) to
the Participant

First Amendment to NQ Option Agreement with Optionee

 

 

	 	 	 	relative to the benefits and total costs under the
material employee benefit plans, programs and practices in
which the Participant (and/or his family or dependents) is
participating immediately preceding the Corporate
Transaction.
	 
	 	(iv)	 	The Successor Corporation’s requiring the
Participant to be based at any office location that is
more than fifty (50) miles further from the Participant’s
office location immediately prior to a Corporate
Transaction; except for reasonable required travel for the
Successor Corporation’s business that is not materially
greater than such travel requirements prior to such
Corporate Transaction.
	 
	 	(v)	 	A material breach by the Successor Corporation
of its obligations to the Participant under the
Plan.”

     2. Entire Agreement. This Amendment sets forth the entire understanding and agreement
of the parties hereto in relation to the subject matter hereof and supersedes any prior
negotiations and agreements among the parties relating to such subject matter. None of the terms or
conditions of this Amendment may be changed, modified, waived or canceled orally or otherwise,
except in writing.

     3. Full Force and Effect of Agreement. Except as hereby specifically amended, modified
or supplemented, the Option Agreement is hereby confirmed and ratified in all respects and shall be
and remain in full force and effect according to their respective terms.

     4. Counterparts. This Amendment may be executed in any number of counterparts, each of
which shall be deemed an original as against any party whose signature appears thereon, and all of
which shall together constitute one and the same instrument.

     5. Governing Law. This Amendment shall be construed and interpreted in accordance with
the laws of the Sate of Delaware, without regards to the principles of conflicts of law.

First Amendment to NQ Option Agreement with Optionee

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be made, executed and
delivered by their duly authorized officers as of the day and year first above written.

	 	 	 	 	 
	 	NEUSTAR, INC.

 	 
	 	By:  	/s/ Jeffrey E. Ganek
 	 
	 	 	Name:  	Jeffrey E. Ganek 	 
	 	 	Title:  	Chairman and Chief Executive Officer 	 
	 
	 	OPTIONEE:

 	 
	 	Martin Lowen 	 
	 	 	 
	 	/s/ Martin Lowen
 	 
	 

First Amendment to NQ Option Agreement with Optionee

 

 

NONQUALIFIED STOCK OPTION AGREEMENT AMENDMENT

     This Nonqualified Stock Option Agreement Amendment dated as of May 20, 2005 (this
“Amendment”) is made by and between NeuStar, Inc. a Delaware corporation having its
principal place of business in Sterling, Virginia (the “Company”), and Martin Lowen (the
“Participant”). Capitalized terms not otherwise defined herein shall have the meaning ascribed to
such terms in the Option Agreement (as defined below).

WITNESSETH:

     WHEREAS, Company granted Participant the right and option to purchase from the Company 35,487
shares (the “Option Shares”) of Company’s common stock, par value $.002 per share;

     WHEREAS, Company and Participant entered into a Nonqualified Stock Option Agreement under the
NeuStar, Inc. 1999 Equity Incentive Plan (the “Option Agreement”)dated December 18, 2003, as
amended on June 22, 2004.

     WHEREAS, the Company and Participant desire to amend the Option Agreement to provide for,
among other things, accelerated vesting of a certain number of the Option Shares under the
circumstance and terms as set forth below.

     NOW, THEREFORE, in consideration of the premises and further valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

     1. Amendment to Section 5 of the Option Agreement. Subject to the terms and
conditions set forth herein, Section 5 of the Option Agreement is hereby amended by deleting
Sections 5 (c), (d) and (e) thereof and replacing such Sections with the following language:

     “(c) Subject to the provisions of Section 13(b) of the Plan, in the event of a
Corporate Transaction (as defined below), if the Option evidenced by this Agreement is not
assumed or continued or a substantially equivalent option or right is not substituted by the
surviving corporation, the successor corporation or its parent corporation, as applicable
(the “Successor Corporation”), the Participant shall fully vest in and have the right to
exercise the Option as to all shares of Common Stock then subject thereto, including shares
as to which the Option would not otherwise be vested or exercisable. Any such Options that
are assumed or replaced (and any such Option shall be considered assumed if the Company in a
Corporate Transaction reaffirms the Option) in connection with a Corporate Transaction and
do not otherwise vest at that time shall be fully vested and exercisable in the event the
Participant’s Service with the Company should

 

 

subsequently be terminated within two (2) years following such Corporate Transaction, unless such
Service is terminated by the Successor Corporation for Cause or by the Participant voluntarily
without Good Reason (as defined below).

     (d) For purposes of this Agreement, a “Corporate Transaction” shall mean any
of the following events:

     (i) The consummation of any merger or consolidation of the Company, if
immediately following such merger or consolidation the holders of the Company’s
outstanding voting securities immediately prior to such merger or consolidation
do not own at least a majority of the outstanding voting securities of the
surviving corporation in approximately the same proportion as they did
immediately prior to such merger or consolidation.

     (ii) The consummation of any sale, lease, exchange or other transfer in one
transaction or a series of related transactions of all or substantially all of
the Company’s assets, other than a transfer of the Company’s assets to a
majority-owned subsidiary of the corporation, or to an entity in which the
holders of the majority of the outstanding voting securities of the entity
immediately prior to the transfer own at least the majority of the outstanding
securities immediately after such transfer in approximately the same proportion
as immediately prior to such transfer.

     (iii) The approval by the holders of the Common Stock of any plan or
proposal for the liquidation or dissolution of the Company.

     (iv) The acquisition by a person, within the meaning of Section 3(a)(9) or
of Section 13 (d)(3) of the Exchange Act of a majority or more of the Company’s
outstanding voting securities (whether directly or indirectly, beneficially or
of record), other than a person who held such majority on the date of adoption
of the Plan. Ownership of voting securities shall take into account and shall
include ownership as determined by applying Rule 13d-3(d)(l)(i) pursuant to the
Exchange Act.”

     (e) For purposes of this Agreement, “Good Reason” shall mean, without the
Participant’s prior written consent, any of the following events or conditions and the
failure of the Successor Corporation to cure such event or condition within thirty (30)
days after receipt of written notice from the Participant:

	 	(i)	 	A substantial diminution or material adverse change in the Participant’s
status, title, position, authority, duties or responsibilities (including
reporting responsibilities) as in effect immediately prior to a Corporate
Transaction, except in connection with the Participant’s termination of

2

 

	 	 	 	Service with the Company for Cause, disability, death or by the
Participant other than for Good Reason.

	 	(ii)	 	A reduction in the Participant’s annual base salary.
	 
	 	(iii)	 	The Successor Corporation’s failure to cover the Participant under
employee benefit plans, programs and practices that, in the aggregate,
provide substantially comparable benefits (from an economic perspective) to
the Participant relative to the benefits and total costs under the material
employee benefit plans, programs and practices in which the Participant
(and/or his family or dependents) is participating immediately preceding
the Corporate Transaction.
	 
	 	(iv)	 	The Successor Corporation’s requiring the Participant to be based at any
office location that is more than fifty (50) miles further from the
Participant’s office location immediately prior to a Corporate Transaction;
except for reasonable required travel for the Successor Corporation’s
business that is not materially greater than such travel requirements prior
to such Corporate Transaction.
	 
	 	(v)	 	A material breach by the Successor Corporation of its
obligations to the Participant under the Plan.”

     2. Entire Agreement. This Amendment sets forth the entire understanding and agreement
of the parties hereto in relation to the subject matter hereof and supersedes any prior
negotiations and agreements among the parties relating to such subject matter. None of the terms or
conditions of this Amendment may be changed, modified, waived or canceled orally or otherwise,
except in writing.

     3. Full Force and Effect of Agreement. Except as hereby specifically amended, modified
or supplemented, the Option Agreement is hereby confirmed and ratified in all respects and shall be
and remain in full force and effect according to their respective terms.

     4. Counterparts. This Amendment may be executed in any number of counterparts, each
of which shall be deemed an original as against any party whose signature appears thereon, and
all of which shall together constitute one and the same instrument.

Governing Law. This Amendment shall be construed and interpreted in accordance with the
laws of the Sate of Delaware, without regards to the principles of conflicts of law.

3

 

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 2 to the Nonqualified
Stock Option Agreement to be made, executed and delivered by their duly authorized officers as of
the day and year first above written.

	 	 	 	 	 
	 	NEUSTAR, INC.

 	 
	 	By:  	/s/ Jeffrey E. Ganek
 	 
	 	 	Name:  	Jeffrey E. Ganek 	 
	 	 	Title:  	Chairman and Chief Executive Officer 	 
	 
	 	OPTIONEE:

 	 
	 	Martin Lowen 	 
	 	 	 
	 	/s/ Martin Lowen
 	 
	 

4exv10w1

Exhibit 10.1

This note has not been registered under the Securities Act of 1933, as amended (the
“Securities Act”), or any state securities laws. neither this note nor any interest or
participation herein may be reoffered, sold, assigned, transferred, pledged, encumbered or
otherwise disposed of in the absence of such registration unless such transaction is exempt from,
or not subject to, the registration requirements of the Securities Act.

XO Communications, LLC

Senior Note due April 15, 2009

			
	 	 	 
	No. 1

$75,000,000
	 	March 13,2008

     For Value Received, the undersigned, XO Communications, LLC (herein called
the “Company”), a limited liability company organized and existing under the laws of the State of
Delaware, hereby promises to pay to Arnos Corp., or registered assigns, the principal sum
of Seventy Five Million Dollars on April 15, 2009. Unless interest is paid in cash as
provided below, the unpaid principal amount of the Notes shall bear interest at the rate of 11.5%
per annum, which amounts shall be capitalized and added to the principal amount of the Notes on
April 15, 2008 and quarterly thereafter on July 15, 2008, October 15, 2008, January 15, 2009 and
April 15, 2009 without further action on the part of the Company or any Purchaser (the “PIK
Amount”). At the election of the Company and following approval by a majority of Holdings’
disinterested independent directors, interest on the unpaid principal amount of the Notes may be
paid on a cash basis, in which case such interest shall accrue from the preceding interest payment
date, at the rate of 9.5% per annum, and shall be payable on April 15, 2008 and quarterly in
arrears thereafter on July 15, 2008, October 15, 2008, January 15, 2009 and April 15, 2009. All
computations of interest shall be made on the basis of a 360-day year consisting of twelve 30-day
months. To the extent permitted by law, any overdue payment (including any overdue prepayment) of
principal and any overdue payment of interest shall bear cash interest at the Default Rate, as
defined in the Note Purchase Agreement.

     Payments of principal of and interest on this Note are to be made in lawful money of the
United States of America to the holder hereof at the address set forth in the Note Purchase
Agreement referred to below.

     This Note is one of the Senior Notes due April 15, 2009 (herein called the “Notes”) issued
pursuant to that certain Note Purchase Agreement dated as of March 13, 2008 (as from time to time
amended, the “Note Purchase Agreement”), between the Company and the respective Purchasers named
therein and is entitled to the benefits thereof. Each holder of
this Note shall be deemed, by
its acceptance hereof, (i) to have agreed to the confidentiality provisions set forth in Section
18 of the Note Purchase Agreement and (ii) to have made the representations set forth in Section 7
of the Note Purchase Agreement.

1

 

     This Note is a registered Note and, as provided in the Note Purchase Agreement, upon surrender
of this Note for registration of transfer, duly endorsed, or accompanied by a written instrument of
transfer duly executed, by the registered holder hereof or such holder’s attorney duly authorized
in writing, a new Note for a like principal amount (after giving effect to any accrued interest
added to the principal thereof) shall be issued to, and registered in the name of, the transferee.
Prior to due presentment for registration of transfer, the Company may treat the person in whose
name this Note is registered as the owner hereof for the purpose of receiving payment and for all
other purposes, and the Company shall not be affected by any notice to the contrary.

     This Note is subject to optional prepayment, in whole or in part, at the times and on the
terms specified in the Note Purchase Agreement, but not otherwise.

     If an Event of Default, as defined in the Note Purchase Agreement, occurs and is continuing,
the principal of this Note may be declared or otherwise become due and payable in the manner, at
the price and with the effect provided in the Note Purchase Agreement.

     This Note shall be construed and enforced in accordance with, and the rights of the parties
shall be governed by, the laws of the State of New York without regard to conflict of law
principles (except for New York General Obligations Law Section 5-1401).

	 	 	 	 	 
	 	XO Communications, LLC

 	 
	 	By 	 /s/ Carl J. Grivner
 	 
	 	 	Its CEO & MANAGER 	 
	 	 	 
	 

2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}]]