Document:

Exhibit
10.1

 

Execution
Copy

 

iBASIS,
INC.

 

SECURITIES
PURCHASE AGREEMENT

 

This
SECURITIES PURCHASE AGREEMENT (this “Agreement”),
dated as of September 24, 2004, 2004, is by and among iBASIS, INC., a Delaware
corporation (the “Company”), and each of
the investors listed on Schedule I hereto (each of the persons or entities
listed on Schedule I,
individually, a “Purchaser” and,
collectively, the “Purchasers”).

 

WHEREAS, the Company desires
to issue and sell to the Purchasers, and the Purchasers desire to purchase from
the Company, an aggregate of 15,000,000 shares (the “Shares”) of the authorized but unissued shares of the Company’s
common stock, $0.001 par value per share (including any securities into which
or for which such shares may be exchanged for, or converted into, pursuant to
any stock dividend, stock split, stock combination, recapitalization,
reclassification, reorganization or other similar event, the “Common Stock”), at an aggregate purchase
price of $31,500,000, all upon the terms and subject to the conditions set
forth in this Agreement; and

 

WHEREAS, simultaneously with
entering into this Agreement, the Company and the Purchasers are entering into
that certain Registration Rights Agreement, dated as of the date hereof (the “Registration Rights Agreement”), pursuant to which the Company will assume
obligations with respect to the registration of the Shares and the Warrant
Shares (as defined below) on the terms set forth therein.

 

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

 

1              Definitions; Certain Rules of Construction.  As used in this Agreement, the following
terms shall have the following respective meanings:

 

“Affiliate”
means, with respect to any Person, any other Person directly or indirectly
controlling or controlled by or under direct or indirect common control with
such specified Person.  For the purposes
of this Agreement, “control,” when used with respect to any specified Person means
the power to direct or cause the direction of the management and policies of
such Person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise; and the terms “controlling” and
“controlled” have meanings correlative to the foregoing.

 

“Board” means the board of directors of the
Company.

 

“business day” (whether such term is
capitalized or not) means any day except Saturday, Sunday and any day
which shall be a federal legal holiday or a day on which banking institutions
in the State of New York are authorized or required by law or other
governmental action to close.

 

“Closing Date” means the date hereof.

 

“Code”
means the Internal Revenue Code of 1986.

 

“Convertible Notes” means the Company’s
53⁄4% Convertible Subordinated Notes due 2005, 63⁄4% Convertible Subordinated Notes
due 2009 and 8% Secured Convertible Notes due 2007.

 

“Environmental
Protection Laws” means any law, statute or regulation enacted by any
jurisdiction in connection with or relating to the protection or regulation of
the environment, including,

 

1

 

without limitation, those laws,
statutes and regulations regulating the disposal, removal, production, storing,
refining, handling, transferring, processing or transporting of hazardous or
toxic substances, and any orders, decrees or judgments issued by any court of
competent jurisdiction in connection with any of the foregoing.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974.

 

“ERISA
Affiliate” means any Person required to be aggregated with the Company or
any Subsidiary of the Company under Sections 414(b), (c), (m) or (o) of the
Code.

 

“Exchange Act” means the Securities Exchange
Act of 1934, as amended, and all of the rules and regulations promulgated
thereunder.

 

“Exchange Act
Reports” means the Company’s reports filed with the SEC since December 31,
2003, pursuant to Section 13 of the Exchange Act.

 

“Governmental
Authority” means any nation or government, any state or other political
subdivision thereof and any entity exercising executive, legislative, judicial,
regulatory or administrative functions of or pertaining to government.

 

“Indebtedness”
means, as applied to any Person, all
indebtedness for borrowed money, whether current or funded, or secured or
unsecured.

 

“Lien”
means, with respect to any property or asset, any mortgage, lien, pledge,
charge, security interest or encumbrance of any kind in respect of such
property or asset, whether or not filed, recorded or otherwise perfected under
applicable law, other than (a) those resulting from taxes which have not yet
become delinquent, (b) minor liens and encumbrances that do not materially
detract from the value of the property or materially impair the operations of
the Company, (c) those relating to Indebtedness incurred prior to the date
hereof and any replacement thereof, or (d) those which have otherwise arisen in
the ordinary course of business consistent with past practice.

 

“Majority Purchasers” means Purchasers
holding, at any time, a majority of the outstanding Shares on such date.

 

“Material Adverse Effect” means a
material adverse effect on the business, assets, liabilities, properties,
operations, prospects or condition (financial or otherwise) of the Company and
its Subsidiaries taken as a whole.

 

“Margin Stock”
is defined in Regulation U of the Board of Governors of the Federal Reserve
System.

 

“Person” (whether or not capitalized) means an
individual, entity, partnership, limited liability company, corporation, association,
trust, joint venture, unincorporated organization, and any government,
governmental department or agency or political subdivision thereof.

 

“PBGC”
means the Pension Benefit Guaranty Corporation.

 

“Plan”
means any employee benefit plan, program or arrangement, whether oral or
written, maintained or contributed to by the Company, any Subsidiary of the
Company or any ERISA Affiliate, or with respect to which the Company, any
Subsidiary of the Company or any ERISA Affiliate may incur liability.

 

2

 

“Registration
Statements” means the Company’s registration statements filed with the SEC
since December 31, 2003, pursuant to the Securities Act.

 

“Rule 144” means Rule 144 promulgated under the
Securities Act and any successor or substitute rule, law or provision.

 

“SEC” means the United States Securities and
Exchange Commission.

 

“SEC
Reports” means the Exchange Act Reports and the Registration Statements.

 

“Securities Act” means the Securities Act
of 1933, as amended, and all of the rules and regulations promulgated
thereunder.

 

“Senior
Loan Agreement” means that certain credit agreement, as amended, restated
or supplemented from time to time, by and among the Company, iBasis Global,
Inc. and Silicon Valley Bank.

 

“Subsidiary”
means with respect to any Person at any time, (a) any other Person the accounts
of which would be consolidated with those of such first Person in its
consolidated financial statements as of such time, and (b) any other Person (i)
which is, at such time, controlled by, or (ii) capital securities of which
having ordinary voting power to elect a majority of the board of directors (or
other persons having similar functions), or other ownership interest of which
ordinarily constituting a majority voting interest, are at such time, directly
or indirectly, owned or controlled by, in the case of each of clauses (i) and
(ii), such first Person or one or more of its Subsidiaries or by such first
Person and one or more of its Subsidiaries. 
Unless otherwise expressly provided, all references herein to
“Subsidiary” means a Subsidiary of the Company.

 

“Transaction Documents” means,
collectively, the Registration Rights Agreement and the Warrants.

 

“Transfer
Agent  Instruction  Letter” means the letter, dated as of
the Closing Date, from the Company to its transfer agent in the form attached
hereto as Exhibit  F.

 

“Warrant Shares” means the shares of
Common Stock issued or issuable upon the exercise of the Warrants.

 

“in writing” means any form of written communication
or a communication by means of telex, facsimile transmission, telegraph or
cable.

 

The following
table sets forth certain other defined terms and the section of this Agreement
in which the meaning of each such term appears:

 

 

	
   

  	
   

  	
  Section(s)

  
	
  “Aggregate Purchase Price”

  	
   

  	
  2.1

  
	
  “Agreed
  Amount”

  	
   

  	
  7.2(b)

  
	
  “Agreement”

  	
   

  	
  Preamble

  
	
  “Claim Notice”

  	
   

  	
  7.2(a)

  

 

3

 

	
   

  	
   

  	
  Section(s)

  
	
  “Claimed Amount”

  	
   

  	
  7.2(a)

  
	
  “Closing”

  	
   

  	
  2.2

  
	
  “Common Stock”

  	
   

  	
  Preamble

  
	
  “Company”

  	
   

  	
  Preamble

  
	
  “Indemnified
  Party”

  	
   

  	
  7.2(b)

  
	
  “Losses”

  	
   

  	
  7.1

  
	
  “Permits”

  	
   

  	
  3.19(b)

  
	
  “Purchase Price Per Share”

  	
   

  	
  2.1

  
	
  “Purchaser”

  	
   

  	
  Preamble

  
	
  “Purchaser
  Indemnitee”

  	
   

  	
  7.1

  
	
  “Registration Rights Agreement”

  	
   

  	
  Preamble

  
	
  “Response
  Notice”

  	
   

  	
  7.2(b)

  
	
  “Shares”

  	
   

  	
  Preamble

  
	
  “Warrant(s)”

  	
   

  	
  2.3

  

 

2              Purchase
and Sale of Shares.

 

2.1              Purchase
and Sale. Subject to and upon the terms and conditions set forth in this
Agreement, the Company agrees to issue and sell to each Purchaser, and each
Purchaser hereby agrees, severally and not jointly, to purchase from the
Company, at the Closing, the number of Shares set forth opposite such
Purchaser’s name on Schedule I hereto, at a purchase price equal to $2.10
per share (the “Purchase  Price Per  Share”). The aggregate
purchase price payable by the Purchasers to the Company for all of the Shares
shall be $31,500,000 (the “Aggregate Purchase Price”).

 

2.2              Closing.
The closing of the transactions contemplated under this Agreement (the “Closing”) shall take place at 5:00 pm (Eastern
Time) at the offices of Bingham McCutchen LLP, 399 Park Avenue, New York, New
York 10022-4689, on the Closing Date, or on such other date and at such time as
may be agreed upon between the Purchasers, on the one hand, and the Company, on
the other hand.  At the Closing, the
Company shall deliver to each Purchaser a single stock certificate, registered
in the name of such Purchaser, representing the number of Shares purchased by
such Purchaser, against payment of the purchase price by wire transfer of
immediately available funds to such account as the Company shall designate in
writing, which stock certificate shall bear the legend set forth in Section
6.2(a).  The stock certificates delivered
to the Purchasers and representing the Shares will be registered in the names
and addresses of the Purchasers set forth on Schedule  I hereto.

 

2.3              Issuance of Common Stock Purchase Warrants at Closing.  Subject to and upon the terms and conditions
set forth in this Agreement, the Company agrees to issue to each Purchaser, at
the Closing, a Common Stock Purchase Warrant, substantially in the form
attached as Exhibit  A hereto (each individually, a “Warrant”
and, collectively with all Common Stock Purchase Warrants issued pursuant to
this Section 2.3 to the other Purchasers, the “Warrants”), exercisable for
the number of shares of Common Stock set forth opposite the name of such
Purchaser under the heading “Number of Warrant Shares” on Schedule
I hereto, at an exercise price equal to the Purchase Price Per
Share.  No additional consideration

 

4

 

shall be payable by any
Purchaser in respect of the issuance by the Company of such Purchaser’s Warrant
at the Closing.

 

3              Representations
and Warranties of the Company.  In
order to induce the Purchasers to enter into this Agreement and to purchase the
Shares, the Company hereby makes the following representations and warranties
as of the Closing Date, all of which shall survive the execution and delivery
of this Agreement and the purchase of the Shares for a period ending on the
third anniversary of the Closing Date, provided, that the
representations and warranties made under Section 3.5 of this Agreement shall
survive indefinitely:

 

3.1              Corporate
Status.  The Company and each of its
Subsidiaries (a) is a duly organized and validly existing corporation in good
standing under the laws of the jurisdiction of its organization and has the
corporate power and authority to own its property and assets and to transact
the business in which it is engaged and presently proposes to engage and (b)
has duly qualified to do business and is in good standing in each jurisdiction
where it is required to be so qualified and where the failure to be so
qualified is reasonably likely to have a Material Adverse Effect.  Neither the Company nor any of its
Subsidiaries is currently in violation of any of the provisions of its
Certificate of Incorporation (or other charter document) or By-laws, each as
amended to date.

 

3.2              Corporate
Power and Authority.  All corporate
action on the part of the Company, its officers and directors necessary for the
authorization, execution, delivery and performance of this Agreement and the
Transaction Documents and the consummation of the transactions contemplated
herein and therein has been taken. When executed and delivered by the Company,
this Agreement and each of the Transaction Documents shall constitute a legal,
valid and binding obligation of the Company, enforceable against the Company in
accordance with its terms, except as such may be limited by bankruptcy,
insolvency, reorganization or other laws affecting creditors’ rights generally
and by general equitable principles. The Company has all requisite corporate
power and authority to enter into this Agreement and the Transaction Documents
and to carry out and perform its obligations under their respective terms.

 

3.3              No
Violation.  Neither the execution,
delivery and performance by the Company this Agreement and the Transaction
Documents nor compliance with the terms and provisions thereof (a) will contravene
any applicable provision of any law, statute, rule, regulation, order, writ,
injunction or decree of any court or governmental instrumentality, except as
would not have a Material Adverse Effect, (b) will conflict or be inconsistent
with or result in any breach of, any of the material terms, covenants,
conditions or provisions of, or constitute a default under, or result in the
creation or imposition of (or the obligation to create or impose) any Lien upon
any of the property or assets of the Company pursuant to the terms of, any
indenture, mortgage, deed of trust, agreement or other instrument to which the
Company or any of its Subsidiaries is a party or by which it or any of its
property or assets are bound or to which it may be subject or result in the
acceleration of any material obligation of the Company, or (c) will violate any
provision of the Certificate of Incorporation or by-laws of the Company, each
as amended to date.

 

3.4              Capitalization.
As of the date hereof, the authorized capital stock of the Company consists of
170,000,000 shares of Common Stock, of which 45,648,703 shares are issued and
outstanding, and 15,000,000 shares of undesignated preferred stock, $0.001 par
value per share, none of which are issued and outstanding. As of the date
hereof, (i) 6,790,624 shares of Common Stock were reserved for future issuance
pursuant to outstanding options issued by the Company, (ii) 8,413,349 shares of
Common Stock were reserved for future issuance pursuant to outstanding warrants
issued by the Company and (iii) 35,840,119 shares of Common Stock were reserved
for future issuance upon conversion of the Convertible Notes.  As of the date hereof, except as set forth
above and for the exercise rights of the warrants and the conversion rights of
the Convertible Notes, and except as set forth on Schedule 3.4

 

5

 

attached hereto, there are no
other outstanding options, warrants, rights (including conversion or preemptive
rights) or any agreement for the purchase or acquisition from the Company of
any shares of the Company’s capital stock or voting agreements with respect to
equity of the Company. All shares of the capital stock of the Company subject
to issuance as aforesaid, upon issuance on the terms and conditions specified
in the instruments pursuant to which they are issuable, shall be duly
authorized, validly issued, fully paid and nonassessable. There are no
obligations, contingent or otherwise, of the Company to repurchase, redeem or
otherwise acquire any shares of Common Stock or to provide funds to or make any
investment (in the form of a loan, capital contribution, guaranty or otherwise)
in any other entity.  The sale of the
Shares and the issuance of the Warrants under this Agreement, and the issuance
of any Warrant Shares upon exercise of the Warrants in their current form, will
not result in the Company being obligated to issue, sell or purchase, pursuant
to any existing pre-emptive, anti-dilution, redemption or other right of third
parties, shares of Common Stock or other securities to or from any Person
(other than the Purchasers), and will not result in a right of any holder of
convertible or contingent securities issued by the Company to adjust the
exercise, conversion, exchange or reset price under such securities, including,
in any such case, pursuant to any “poison pill” or shareholders rights
plan.  None of the outstanding shares of
capital stock of the Company were issued in violation of the Securities Act or
any state securities laws.

 

3.5              Valid
Issuance of the Shares. The Shares, the Warrants and the Warrant Shares
have been duly authorized, and the Shares and the Warrant Shares, upon issuance
pursuant to the terms hereof and the terms of the Warrants, respectively, (a)
will be validly issued, fully paid and nonassessable, (b) will not be subject
to any encumbrances, preemptive rights or any other similar contractual rights
of the stockholders of the Company or any other Person, and (c) the applicable
Purchaser (with respect to the Shares) and the applicable Holder (as defined in
the Warrant) will obtain sole record ownership of such Shares and Warrant
Shares (as applicable) and take good marketable title thereto, free and clear
of any Liens (defined for purposes hereof without regard to the carve-outs set
forth in clauses (a) through (d) of the definition of Lien), claims, charges,
taxes, options or transfer restrictions of any kind which are imposed by the
Company, or arise as a result of the Company’s action or omission, other than
those explicitly set forth in this Agreement and in the Warrants. The Company
has reserved from its duly authorized capital stock the number of shares of
Common Stock issuable upon execution of this Agreement and upon exercise in
full of the Warrants (assuming the Warrants vest in full).

 

3.6              Litigation.  Except as disclosed in the SEC Reports, no
actions, suits or proceedings are pending or, to the Company’s knowledge,
threatened that are reasonably likely to have (a) a Material Adverse Effect or
(b) an adverse effect on the rights or remedies of the Purchasers or on the
ability of the Company or its Subsidiaries to perform their respective
obligations under this Agreement.

 

3.7              Approvals.  Except for any required filings and
recordings which have been made and are in full force and effect, no order,
consent, approval, license, authorization or validation of, or filing,
recording or registration with, or exemption by, any Person or Governmental
Authority, is required to authorize or is required in connection with (a) the
execution, delivery and performance of this Agreement or the Transaction
Documents or (b) the legality, validity, binding effect or enforceability of
this Agreement or the Transaction Documents. 
The execution and delivery by the Company of this Agreement and the
Transaction Documents, the consummation of the transactions contemplated herein
and therein, and the issuance of the Shares and the Warrants and, upon exercise
of the Warrants, the Warrant Shares, do not require the consent or approval of
the stockholders of the Company or any other Person.

 

3.8              Contracts.  All material agreements to which the Company
is a party or to which the property or assets of the Company are subject are
included as part of or specifically identified in the SEC Reports to the extent
required by the rules and regulations of the SEC as in effect at the time of
filing

 

6

 

of such SEC Reports.  All such material agreements required to be
filed as exhibits to the SEC Reports are legal, valid and binding obligations
of the Company in accordance with their respective terms and, to the knowledge
of the Company, the other parties thereto, except in any case as may be limited
by bankruptcy, insolvency, reorganization or other laws affecting creditors’
rights generally and by general equitable principles.

 

3.9              Conformity
to Securities Act and Exchange Act; No Misstatement or Omission.  Each of the SEC Reports as of the date it was
filed with the SEC in the case of filings under the Exchange Act or declared
effective in the case of the Registration Statements, complied in all material
respects with the applicable requirements of the Securities Act or the Exchange
Act and the respective rules and regulations of the SEC thereunder and did not
contain an untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements therein not misleading.

 

3.10            Financial
Statements; Indebtedness.

 

(a)           The
financial statements and supporting schedules included in the Company’s Annual
Report on Form 10-K for the year ended December 31, 2003, and in the Company’s
Quarterly Report on Form 10-Q for the quarter ended June 30, 2004 and in any
Registration Statements or other SEC Reports, in each case filed with the SEC,
are complete and correct in all material respects and present fairly the
consolidated financial position of the Company and its Subsidiaries as of the
dates specified and the consolidated results of their operations for the
periods specified, in each case, in conformity with generally accepted
accounting principles applied on a consistent basis during the periods
involved, except as indicated therein or in the notes thereto.

 

(b)           Except
for Indebtedness reflected in the financial statements  and except as set forth in Schedule 3.10(b) attached hereto, the
Company has no Indebtedness outstanding at the date hereof.  The Company is not in default with respect to
any outstanding Indebtedness or any instrument relating thereto.

 

3.11            Margin
Regulations.  Neither the sale of the Shares, nor the use of the
proceeds thereof, will violate Regulation T, U or X of the Board of Governors
of the Federal Reserve System.

 

3.12            Investment
Company Act.  The Company is not an
“investment company” or a company “controlled” by an “investment company,”
within the meaning of the Investment Company Act of 1940.

 

3.13            Public
Utility Holding Company Act.  The
Company is not a “holding company,” or a “subsidiary company” of a “holding
company,” or an “affiliate” of a “holding company” or of a “subsidiary company”
of a “holding company,” within the meaning of the Public Utility Holding
Company Act of 1935.

 

3.14            No
Material Adverse Changes.  Since June
30, 2004, (a) there has been no event which has had a Material Adverse Effect;
(b) except as contemplated by this Agreement or described in the SEC Reports,
there has been no transaction entered into by the Company or any of its
Subsidiaries other than transactions in the ordinary course of business or
transactions which would not, individually or in the aggregate, be material to
the Company; (c) except as set forth on Schedule 3.14
attached hereto, there have not been any changes in the Company’s
authorized capital or, other than the borrowings made by the Company under the
Senior Loan Agreement described on Schedule 3.14,
any material increases in the Indebtedness of the Company and its Subsidiaries
taken as a whole; and (d) there has been no actual or, to the knowledge of the
Company, threatened revocation of, or default under, any contract to which the
Company or any of its Subsidiaries is a party, except as would not have a
Material Adverse Effect.

 

7

 

3.15            Tax
Returns and Payments.  Each of the
Company and each of its Subsidiaries has filed all federal income tax returns
and all other material domestic and foreign tax returns required to be filed by
it and has paid all material taxes and assessments payable by it which have
become due, except for those contested in good faith and adequately reserved
against (in the good faith determination of the Company), all of which, to the
extent outstanding on the Closing Date, have been disclosed by the Company in
the SEC Reports.  Each of the Company and
each of its Subsidiaries has paid, or has provided adequate reserves (in the
good faith judgment of the Company) for the payment of, all material federal,
state and foreign taxes that are not yet due and payable for all fiscal years,
including the current fiscal year, to date. 
No action, suit, proceeding, investigation, audit or claim is now
pending or, to the knowledge of the Company or its Subsidiaries, threatened by
any authority regarding any taxes relating to the Company or any of its
Subsidiaries which is reasonably likely to have a Material Adverse Effect.  As of the Closing Date, neither the Company
nor any of its Subsidiaries has entered into an agreement or waiver or been
requested to enter into an agreement or waiver extending any statute of
limitations relating to the payment or collection of taxes of the Company or
any of its Subsidiaries.  No tax return
of the Company or any of its Subsidiaries is or has been the subject of an
audit or examination by any taxing authority, other than any such audit or
examination which has been completed or closed. 
Each of the Company and its Subsidiaries has withheld from each payment
made to any of its past or present employees, officers and directors, and any
other person, the amount of all material taxes and other deductions required to
be withheld therefrom and paid the same to the proper taxing authority within
the time required by law.

 

3.16            Subsidiaries.  As of the Closing Date, the Company has no
directly held Subsidiary other than iBasis Global, Inc., iBasis Securities
Corporation, Inc. and iBasis Speech Solutions, Inc., and such Subsidiaries have
no Subsidiaries other than those listed on Schedule
3.16 attached hereto.  Each of the
Company and the Subsidiaries has good and marketable title to all of the shares
it purports to own of the stock of each Subsidiary, free and clear in each case
of any Lien.  All such shares have been
duly issued and are fully paid and nonassessable.  As of the Closing Date, the Company is not party
to any joint venture or similar arrangement.

 

3.17            Properties.  The Company and each of its Subsidiaries have
good and valid title to all material properties owned by them, including all
such properties reflected in their balance sheets included in the Company’s
Quarterly Report on Form 10-Q for the quarter ended June 30, 2004, free and
clear of all Liens, other than as referred to in such balance sheet or in the
notes thereto.

 

3.18            Labor
Relations.  The Company and its
Subsidiaries are not engaged in any unfair labor practice that is reasonably
likely to have a Material Adverse Effect. 
No unfair labor practice complaint is pending against the Company or any
of its Subsidiaries or, to the best of its knowledge, threatened against it or
any of its Subsidiaries, before the National Labor Relations Board or similar
foreign labor relations authority, and no grievance or arbitration proceeding
arising out of or under any collective bargaining agreement is so pending
against the Company or any of its Subsidiaries, or, to the best of its
knowledge, threatened against it or any of its Subsidiaries.  No strike, labor dispute, slowdown or
stoppage is pending against the Company or any of its Subsidiaries or, to the
best of its knowledge, threatened against the Company or any of it
Subsidiaries.  To the knowledge of the
Company, no union representation question exists with respect to the employees
of the Company or any of its Subsidiaries and no union organizing activities
are taking place.

 

3.19            Regulatory
Matters.

 

(a)           Authorizations.  The Company holds all Federal Communications
Commission (“FCC”), state public utility commission (“PUC”) and
foreign regulatory authority permits, licenses, certificates, registrations and
other similar authorizations necessary or appropriate for the conduct of its

 

8

 

business (collectively, the “Authorizations”),
the lack of which would, individually or in the aggregate, have a Material
Adverse Effect.  The Company is in
compliance with all such Authorizations and any material terms and conditions
thereto except such non-compliance as would not, individually or in the
aggregate, have a Material Adverse Effect. 
Each Authorization which is material to the business of the Company is
valid and in full force and effect, and the Company has not received notice
from the FCC, any PUC, or any foreign regulatory authority of its intention to
revoke, condition or fail to renew any such Authorization, which would,
individually or in the aggregate, have a Material Adverse Effect.  To the knowledge of the Company, no event has
occurred which allows, or after notice or lapse of time would allow, revocation
or termination or result in any other material impairment of the Company’s
rights under any of its Authorizations to the extent that such revocation,
termination or impairment would have a Material Adverse Effect.

 

(b)           Compliance
with Law.  The conduct of the
Company’s business complies in all material respects with all applicable U.S.,
state and foreign laws (including, without limitation, the Communications Act
of 1934, as amended, and the Communications Assistance for Law Enforcement
Act), ordinances, rules, regulations, and orders (including, without
limitation, those issued by the FCC, any PUC or any foreign regulatory
authority), except where the failure to so comply would not have a Material
Adverse Effect.

 

(c)           Litigation.  There is no outstanding adverse judgment,
injunction, decree or order that has been issued by the FCC, any PUC or any
foreign regulatory authority against the Company which would, individually or
in the aggregate, have a Material Adverse Effect.  To the knowledge of the Company, there is no
action, investigation or proceeding pending or threatened, by the FCC, any PUC
or any foreign regulatory authority, against the Company or against any
officer, director, employee or agent of the Company in any court or before any
U.S., state or foreign governmental agency (including, without limitation, the
FCC, any PUC or any foreign regulatory authority), which would, individually or
in the aggregate, have a Material Adverse Effect, and, to the knowledge of the
Company, no claim has been made that the Company currently violates any
foreign, federal, state or local law, ordinance, rule or regulation to the
extent such claim would have a Material Adverse Effect.

 

(d)           Approvals.  The execution, performance and delivery of
this Agreement and the Transaction Documents, compliance by the Company with
all the provisions thereof and the consummation by the Company of the
transactions contemplated thereby will not (a) require any consent, approval,
exemption, or authorization from, notice to, or filing with the FCC, any PUC or
any foreign governmental authority, except as would not have a Material Adverse
Effect, (b) violate or conflict with the Communications Act of 1934, as
amended, or the rules or regulations of the FCC, any PUC or any foreign
regulatory authority, except as would not have a Material Adverse Effect, or
(c) cause any cancellation, termination, revocation, forfeiture or material
impairment of any of the Authorizations, except as would not have a Material
Adverse Effect.

 

3.20            Permits.

 

(a)           The
Company and its Subsidiaries have all franchises, permits, licenses and any
similar authority (the “Permits”) necessary for the conduct of their
business as now being conducted by them, the lack of which could, individually
or in the aggregate, reasonably be expected to have a Material Adverse
Effect.  As of the date hereof, no
suspension or cancellation of any of the Permits is pending or, to the
knowledge of the Company, threatened which could, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect.

 

3.21            ERISA.  Neither the Company, any Subsidiary of the
Company nor any ERISA Affiliate maintains or contributes to any Plan other than
those listed on Schedule 3.21 attached
hereto.

 

9

 

(a)           Compliance
with ERISA.  The Company and each
ERISA Affiliate is in compliance with ERISA, except for such failures to comply
that, in the aggregate for all such failures, would not reasonably be expected
to have a Material Adverse Effect and no contributions required to be made by
the Company or any ERISA Affiliate to any pension plan are overdue.

 

(b)           PBGC.
No liability to the PBGC has been or is expected to be incurred by the Company
or any ERISA Affiliate with respect to any pension plan that, individually or
in the aggregate, would reasonably be expected to have a Material Adverse
Effect.  No circumstance exists that
constitutes grounds under section 4042 of ERISA entitling the PBGC to institute
proceedings to terminate, or appoint a trustee to administer, any pension plan
or trust created thereunder, nor has the PBGC instituted any such proceeding.

 

(c)           Multiemployer Plans.  Neither the Company nor any ERISA Affiliate
has incurred or presently expects to incur any withdrawal liability under Title
IV of ERISA with respect to any multiemployer plan except for such withdrawal
liability that, in the aggregate of all such liabilities, would not reasonably be
expected to have a Material Adverse Effect. 
There have been no “reportable events” (as such term is defined in
section 4043 of ERISA) with respect to any multiemployer plan that could result
in the termination of such multiemployer plan and give rise to a liability of
the Company or any ERISA Affiliate in respect thereof except for such
“reportable events” that, in the aggregate for all such “reportable events,”
would not reasonably be expected to have a Material Adverse Effect.

 

3.22            No Undisclosed Liabilities.  Except as disclosed, reflected or reserved
against in the financial statements and supporting schedules included in the
Company’s Annual Report on Form 10-K for the year ended December 31, 2003, and in the Company’s Quarterly Report on Form 10-Q for
the quarter ended June 30, 2004 and in any Registration Statements or other SEC Reports, there are no
liabilities of the Company or any Subsidiary, other than liabilities incurred
in the ordinary course of business consistent with past practice since June 30,
2004 or which in the aggregate would not reasonably be expected to result in a
Material Adverse Effect.

 

3.23            Insurance.  The Company maintains insurance
of the types and in the amounts that the Company reasonably believes is prudent
and adequate for its business as currently conducted, all of which insurance is
in full force and effect.

 

3.24            Accounts Receivable.  Except as disclosed on Schedule 3.24 attached hereto, the accounts and notes
receivable of the Company and its Subsidiaries reflected on the balance sheet
included in the Company’s Annual Report on Form 10-K for the year ended
December 31, 2003, and all accounts and notes receivable arising subsequent to
December 31, 2003, (i) arose from bona fide sales transactions in the ordinary
course of business consistent with past practice and are payable on ordinary
trade terms, (ii) to the knowledge of the Company and each Subsidiary, are
legal, valid and binding obligations of the respective debtors enforceable in
accordance with their respective terms, (iii) to the knowledge of the Company
and each Subsidiary, are not subject to any valid set-off or counterclaim, and
(iv) are not the subject of any actions or proceedings brought by or on behalf
of the Company or any Subsidiary, other than bankruptcy proceedings.

 

3.25            Brokers.  Except as disclosed in Schedule 3.25 attached hereto, neither the Company nor any
Subsidiary has any liability to pay any fees, commissions or other similar
compensation to any broker, finder, investment banker, financial advisor or
other similar Person in connection with the transactions contemplated by this
Agreement.

 

3.26            Leases.  Each of the Company and the Subsidiaries has
complied with all material obligations under all leases to which it is a party
as a lessee.  All leases relating to the
leasehold estates of

 

10

 

each of the Company and the
Subsidiaries necessary in any material respect for the conduct of the business
of such Person are, with respect to the Company, valid and enforceable, and, to
the knowledge of the Company, are, valid and enforceable with respect to the
lessor, and each of the Company and the Subsidiaries that is the lessee in
respect thereof currently enjoys peaceful and undisturbed possession of the premises
subject thereto.

 

3.27            Intellectual
Property.  Each of the Company and
the Subsidiaries owns, possesses or has the right to use all of the patents,
trademarks, service marks, trade names, copyrights, franchises and licenses,
and rights with respect thereto, necessary for the present and currently
planned future conduct of its business, without any known conflict with the
rights of others, except for such failures to own, possess, or have the right
to use, that, in the aggregate for all such failures, could not reasonably be
expected to have a Material Adverse Effect.

 

3.28            Environmental
Compliance.

 

(a)           Compliance.  Each of the Company and the Subsidiaries is
in compliance with all Environmental Protection Laws in effect in each
jurisdiction where it is currently doing business, except where the failure to
so comply, in the aggregate for all such failures, would not reasonably be
expected to have a Material Adverse Effect.

 

(b)           Liability.  Neither the Company nor any Subsidiary is
subject to any liability under any Environmental Protection Law that, in the
aggregate for all such liabilities, would reasonably be expected to have a
Material Adverse Effect.

 

(c)           Notices.  Neither the Company nor any Subsidiary has
received any

 

(i)  notice from
any Governmental Authority by which any of its currently or previously owned or
leased properties has been identified in any manner by any Governmental
Authority as a hazardous substance disposal or removal site, “Super Fund”
clean-up site, or candidate for removal or closure pursuant to any
Environmental Protection Law,

 

(ii)  notice of
any Lien arising under or in connection with any Environmental Protection Law
that has attached to any revenues of, or to, any of its currently or previously
owned or leased properties, or

 

(iii) communication, written or oral, from any
Governmental Authority concerning any action or omission in connection with its
currently or previously owned or leased properties resulting in the release of
any hazardous substance resulting in any violation of any Environmental
Protection Law,

 

in each case
where the effect of which, in the aggregate for all such notices and
communications, would reasonably be expected to have a Material Adverse Effect.

 

3.29            Registration
Rights.  Except as set forth on Schedule 3.29 attached hereto, the
Company is not currently subject to any agreement providing any person or
entity any rights (including piggyback registration rights) to have any
securities of the Company registered with the SEC or registered or qualified
with any other governmental authority.

 

3.30            Transactions
with Affiliates and Employees. Except as set forth in the SEC Reports or on
Schedule 3.30 attached hereto, none of
the officers or directors of the Company and, to the knowledge of the Company,
none of the employees of the Company, is presently a party to any

 

11

 

transaction or agreement with
the Company (other than for services as employees, officers and directors)
exceeding $60,000 in value, including any contract, agreement or other
arrangement providing for the furnishing of services to or by, providing for
rental of real or personal property to or from, or otherwise requiring payments
to or from any officer, director or such employee or, to the knowledge of the
Company, any entity in which any officer, director, or any such employee has a
substantial interest or is an officer, director, trustee or partner.

 

3.31            Internal
Accounting Controls. Except as disclosed in the SEC Reports and as would
not otherwise be reasonably expected to have a Material Adverse Effect, the
Company maintains a system of internal accounting controls sufficient to
provide reasonable assurance that (i) transactions are executed in accordance
with management’s general or specific authorizations, (ii) transactions are
recorded as necessary to permit preparation of financial statements in
conformity with United States generally accepted accounting principles and to
maintain asset accountability, (iii) access to assets is permitted only in
accordance with management’s general or specific authorizations, and (iv) the
recorded accountability for assets is compared with the existing assets at
reasonable intervals and appropriate action is taken with respect to any
differences.

 

3.32            Securities
Laws. Subject to the accuracy of the Purchasers’ representations and
warranties set forth in Section 4 below and an Investor Questionnaire
executed and delivered by each Purchaser to the Company, such Investor
Questionnaire in the form attached hereto as Exhibit  B, the
offer, sale and issuance of the Shares, as provided in this Agreement, is and
is intended to be (a) exempt from the registration requirements of the
Securities Act pursuant to one or more of Sections 3(b) and 4(2) hereof and Regulation
D promulgated thereunder, and (b) exempt from registration or qualification
requirements of applicable state securities laws. Neither the Company nor
anyone acting on its behalf has taken or hereafter will take any action that
would cause the loss of such exemptions.

 

3.33            No
Integrated Offering.  Neither the
Company, nor any Affiliate of the Company, nor any person acting on its or
their behalf has, directly or indirectly, made any offers or sales of any
security or solicited any offers to buy any security, under circumstances that
would cause the offering or issuance of the Shares, the Warrants or any Warrant
Shares pursuant to this Agreement to be integrated with prior offerings by the
Company for purposes of the Securities Act which would cause the exemptions
from SEC registration upon which the Company is relying for the offering or
issuance of the Shares, the Warrants or any Warrant Shares pursuant to this
Agreement to be unavailable, any applicable state securities laws or any
applicable stockholder approval provisions, including, without limitation,
under the rules and regulations of any national securities exchange or
automated quotation system on which any of the securities of the Company are
listed or designated, nor will the Company take any action or steps that would
cause the offering or issuance of the Shares, the Warrants or any Warrant
Shares pursuant to this Agreement to be integrated with other offerings.

 

4              Representations
and Warranties of the Purchasers. Each Purchaser represents and warrants,
severally (as to such Purchaser only) and not jointly, to the Company as
follows:

 

4.1              Authorization. All action on the part of such
Purchaser and, if applicable, its officers, directors, managers, members,
shareholders and/or partners necessary for the authorization, execution,
delivery and performance of this Agreement and the Registration Rights
Agreement, and the consummation of the transactions contemplated herein and
therein, has been taken. When executed and delivered, each of this Agreement
and the Registration Rights Agreement will constitute the legal, valid and
binding obligation of such Purchaser, enforceable against such Purchaser in
accordance with its terms, except as such may be limited by bankruptcy,
insolvency, reorganization or other laws affecting creditors’ rights generally
and by general equitable principles. Such Purchaser has all requisite power and

 

12

 

authority to enter into each of
this Agreement and the Registration Rights Agreement, and to carry out and
perform its obligations under the terms of hereof and thereof.

 

4.2              Purchase
Entirely for Own Account. Such Purchaser is acquiring the Shares and the
Warrants for its own account for investment and not for resale or with a view
to distribution thereof in violation of the Securities Act.

 

4.3              Investor
Status; Etc. Such Purchaser certifies and represents to the Company that it
is an “accredited investor” as defined in Rule 501 of Regulation D promulgated
under the Securities Act and was not organized for the purpose of acquiring any
of the Shares or the Warrants. Such Purchaser’s financial condition is such
that it is able to bear the risk of holding the Shares for an indefinite period
of time and the risk of loss of its entire investment. Such Purchaser has
sufficient knowledge and experience in investing in companies similar to the
Company so as to be able to evaluate the risks and merits of its investment in
the Company.

 

4.4              Securities
Not Registered. Such Purchaser understands that the Shares, the Warrant and
any Warrant Shares issued thereunder have not been registered under the
Securities Act, by reason of their issuance by the Company in a transaction
exempt from the registration requirements of the Securities Act, and that the
Shares, the Warrants and any Warrant Shares issued thereunder must continue to
be held by such Purchaser unless a subsequent disposition thereof is registered
under the Securities Act or is exempt from such registration. Such Purchaser
understands that the exemptions from registration afforded by Rule 144 (the
provisions of which are known to it) promulgated under the Securities Act
depend on the satisfaction of various conditions, and that, if applicable, Rule
144 may afford the basis for sales only in limited amounts.

 

4.5              No
Violation. Neither the execution, delivery and performance by such
Purchaser of this Agreement and the Registration Rights Agreement nor
compliance with the terms and provisions hereof by such purchaser (a) will
contravene any applicable provision of any law, statute, rule, regulation,
order, writ, injunction or decree of any court or governmental instrumentality,
except as would not have a material effect on such Purchaser; or (b) will
violate any provision of the organizational documents of such Purchaser.

 

4.6              Brokers. Such Purchaser has not retained,
utilized or been represented by any broker or finder in connection with the
transactions contemplated by this Agreement.

 

4.7              Consents. All consents, approvals, orders and
authorizations required on the part of such Purchaser in connection with the
execution, delivery or performance of this Agreement and the consummation of
the transactions contemplated herein have been obtained and are effective as of
the date hereof.

 

4.8              Disclosure
of Information. Such Purchaser believes it has received all the information
it considers necessary or appropriate for deciding whether to purchase the
Shares and the Warrants. Such Purchaser further represents that it has had an
opportunity to ask questions and receive answers from the Company regarding the
terms and conditions of the offering of the Shares and the Warrants and the
business, properties, prospects and financial condition of the Company.

 

5              Conditions
Precedent. 

 

5.1              Conditions
to the Obligation of the Purchasers to Consummate the Closing. The
obligation of each Purchaser to consummate the Closing and to purchase and pay
for the Shares is subject to the satisfaction of the following conditions
precedent:

 

13

 

(a)           The
representations and warranties of the Company contained herein shall be true
and correct in all material respects on and as of the Closing Date. The Company
shall have performed all obligations and conditions herein required to be
performed or complied with by the Company on or prior to the Closing Date.

 

(b)           There
shall have been no event or events which has occurred since the date hereof and
taken individually or in the aggregate is reasonably likely to have a Material
Adverse Effect.

 

(c)           No
proceeding challenging this Agreement or the Transaction Documents, or the
transactions contemplated hereby or thereby, or seeking to prohibit, alter,
prevent or materially delay the Closing, shall have been instituted before any
court, arbitrator or governmental body, agency or official or shall be pending
against or involving the Company.

 

(d)           The
sale of the Shares and the issuance of the Warrants to the Purchasers shall not
be prohibited by any law, rule, governmental order or regulation. All necessary
consents, approvals, licenses, permits, orders and authorizations of, or
registrations, declarations and filings with, any governmental or
administrative agency or of or with any other Person with respect to any of the
transactions contemplated hereby shall have been duly obtained or made and
shall be in full force and effect.

 

(e)           The Purchasers shall have received
from Bingham McCutchen LLP, outside counsel to the Company, an opinion
addressed to such Purchaser, dated the Closing Date and substantially in the
form of Exhibit  C hereto.

 

(f)            The
Registration Rights Agreement shall have been executed and delivered to the
Purchasers by the Company.

 

(g)           The
Company shall have delivered to the Purchasers a certificate substantially in
the form of Exhibit D hereto dated
the Closing Date and signed by the secretary or another officer of the Company,
certifying (i) that the copies of the Certificate of Incorporation, the By-Laws
and resolutions of the Board approving this Agreement, the Transaction
Documents and the transactions contemplated hereby and thereby attached
thereto, are all true, complete and correct and remain in full force and effect
as of such date, and (ii) as to the incumbency and specimen signature of each
officer of the Company executing this Agreement, the Transaction Documents and
any other document delivered in connection herewith on behalf of the Company.

 

(h)           The
Company shall have delivered to the Purchasers a certificate substantially in
the form of Exhibit E hereto dated
the Closing Date and signed by the Company’s chief financial officer,
certifying that (i) the representations and warranties of the Company contained
in Section 3 hereof are true and correct in all material respects on the
Closing Date and (ii) the Company has performed and complied with all of the
agreements and conditions set forth or contemplated herein that are required to
be performed or complied with by the Company on or before the Closing Date.

 

(i)            Such
Purchaser shall have received from the Company an original stock certificate
evidencing the purchase of the Shares and an original Warrant, in each case for
the number of shares of Common Stock and the number of Warrant Shares,
respectively, set forth opposite such Purchaser’s name on Schedule I hereto, and bearing the legends required to be imprinted
thereon pursuant to Section 6.2 hereof.

 

14

 

(j)            The
Company shall have delivered to the Purchasers a certificate of good standing
issued by the Secretary of State of the State of Delaware, and a certificate of
qualification to do business by the Secretary of the Commonwealth of the
Commonwealth of Massachusetts.

 

(k)           The
Purchasers shall have received a copy of the duly executed Transfer Agent
Instruction Letter in the form of Exhibit  F hereto.

 

5.2              Conditions
to the Obligation of the Company to Consummate the Closing. The obligation
of the Company to consummate the Closing and to issue and sell the Shares to
each Purchaser at the Closing is subject to the satisfaction of the following
conditions precedent:

 

(a)           The
representations and warranties of such Purchaser contained herein shall be true
and correct in all respects on and as of the Closing Date with the same force
and effect as though made on and as of the Closing Date.

 

(b)           The
Registration Rights Agreement shall have been executed and delivered by such
Purchaser.

 

(c)           Such
Purchaser shall have performed all obligations and conditions herein required
to be performed or complied with by such Purchaser on or prior to the Closing
Date, including but not limited to tendering its entire portion of the
Aggregate Purchase Price.

 

(d)           No
proceeding challenging this Agreement or the Transaction Documents, or the
transactions contemplated hereby or thereby, or seeking to prohibit, alter,
prevent or materially delay the Closing, shall have been instituted before any
court, arbitrator or governmental body, agency or official or shall be pending
against or involving such Purchaser.

 

(e)           The
sale of the Shares and the issuance of the Warrants by the Company shall not be
prohibited by any law, rule, governmental order or regulation. All necessary
consents, approvals, licenses, permits, orders and authorizations of, or
registrations, declarations and filings with, any governmental or
administrative agency or of any other Person with respect to any of the
transactions contemplated hereby shall have been duly obtained or made and
shall be in full force and effect.

 

(f)            Such
Purchaser shall have delivered to the Company each of a Form W-9 or Form W-8,
as applicable, and a completed Investor Questionnaire in the form of Exhibit
B hereto.

 

(g)           The
Aggregate Purchase Price shall have been tendered to the Company in payment for
the Shares hereunder.

 

6              Certain
Covenants and Agreements.

 

6.1              Transfer
of Securities. Each Purchaser agrees severally (as to itself only) and not
jointly that it shall not sell, assign, pledge, transfer or otherwise dispose
of or encumber any of the Shares, the Warrants or any Warrant Shares, except: (i)
pursuant to an effective registration statement under the Securities Act; (ii)
to an Affiliate (so long as such Affiliate agrees to be bound by the terms and
provisions of this Agreement as if, and to the fullest extent as, such
Purchaser); or (iii) pursuant to an available exemption from registration under
the Securities Act (including sales permitted pursuant to Rule 144) and
applicable state securities laws. Any transfer or purported transfer of the
Shares in violation of this Section 6.1 shall be void. The Company shall not
register any transfer of the Shares in violation of this Section 6.1. The
Company may, and may instruct any transfer agent for the Company, to place such

 

15

 

stop transfer orders as may be
required on the transfer books of the Company in order to ensure compliance
with the provisions of this Section 6.1.

 

6.2              Legends.

 

(a)           To
the extent applicable, each certificate or other document evidencing the
Shares, the Warrants and any Warrant Shares shall be endorsed with the legend
set forth below, and each Purchaser covenants that, except to the extent such
restrictions are waived by the Company, it shall not transfer the shares
represented by any such certificate without complying with the restrictions on
transfer described in this Agreement and the legends endorsed on such
certificate:

 

“THE SHARES REPRESENTED BY
THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, AND MAY NOT BE OFFERED OR SOLD IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION STATEMENT UNDER SAID ACT OR PURSUANT TO AN AVAILABLE EXEMPTION
FROM, OR IN A TRANSACTION NOT SUBJECT TO, REGISTRATION UNDER SAID ACT.”

 

(b)           The
legend set forth in Section 6.2(a) shall be removed from the certificates evidencing
the Shares, Warrants and any Warrant Shares, (i) following any sale of such
Shares, Warrants or Warrant Shares pursuant to Rule 144 or any effective
registration statement, or (ii) if such Shares, Warrants or Warrant Shares are
eligible for sale under Rule 144(k) (and the holder of such Shares, Warrants or
Warrant Shares has submitted a written request for removal of the legend
indicating that the holder has complied with the applicable provisions of Rule
144), or (iii) if such legend is not required under applicable requirements of
the Securities Act (including judicial interpretations and pronouncements
issued by the Staff of the Commission) (and the holder of such Shares, Warrants
or Warrant Shares has submitted a written request for removal of the legend
indicating that the holder has complied with such judicial interpretation or
pronouncement). Subject to receipt of appropriate certifications, the Company
shall cause its counsel to issue a legal opinion to the Company’s transfer
agent promptly upon the occurrence of any of the events in clauses (i), (ii) or
(iii) above to effect the removal of the legend on certificates evidencing the
Shares or any Warrant Shares and shall also cause its counsel to issue a
“blanket” legal opinion to the Company’s transfer agent promptly after the
effective date of any registration statement covering the resale of the Shares
or any Warrant Shares (provided that there is an effective registration
statement covering the resale of the Shares or any Warrant Shares, as the case
may be), if required by the Company’s transfer agent, to allow sales without
restriction pursuant to an effective registration statement. The Company agrees
that at such time as such legend is no longer required under this Section
6.2(b), it will, no later than three (3) business days following the delivery
by a Purchaser to the Company or the Company’s transfer agent of a certificate
representing the Shares or any Warrant Shares issued with a restrictive legend,
deliver or cause to be delivered to such Purchaser a certificate representing
such Shares or Warrant Shares that is free from all restrictive and other
legends; provided that in the case of removal of the legend for reasons
set forth in clause (ii) above, the holder of such Shares or Warrant Shares has
submitted a written request for removal of the legend indicating that the
holder has complied with the applicable provisions of Rule 144. The Company may
not make any notation on its records or give instructions to any transfer agent
of the Company that enlarge the restrictions on transfer set forth in this
Section 6.

 

6.3              Publicity. Except to the extent required by
applicable laws, rules, regulations or stock exchange requirements, the
Company, the Subsidiaries and their Affiliates shall not, without the written
consent of the Majority Purchasers, make any public announcement or issue any
press release with respect to the transactions contemplated by this
Agreement.  Except to the extent required
by applicable laws, rules, regulations or stock exchange requirements, the
Purchasers and their Affiliates shall not, without the written consent of the
Company make any public announcement or issue any press

 

16

 

release with respect to the
transactions contemplated by this Agreement. 
In no event will either (i) the Company, the Subsidiaries or any of
their Affiliates or (ii) any Purchaser or any of its Affiliates make any public
announcement or issue any press release with respect to the transactions contemplated
by this Agreement without consulting with the Company, on the one hand, and the
Majority Purchasers, on the other hand, to the extent feasible, as to the
content of such public announcement or press release.  Notwithstanding the foregoing, the parties
agree that the Company shall issue a press release in the form of Exhibit
G hereto promptly following the Closing.

 

6.4              Use
of Proceeds. The Company covenants and agrees that the proceeds from the
sale of the Shares shall be used by the Company for repayment or prepayment of
indebtedness of the Company, working capital and general corporate purposes or
any other purpose approved by the Board, including, without limitation, growth
initiatives, capital expenditures and potential acquisitions.  The Company covenants and agrees that no part
of the proceeds from the sale of the Shares will be used to purchase or carry
any Margin Stock or to extend credit for the purpose of purchasing or carrying
any Margin Stock.  The Company further
covenants and agrees that it will not use the proceeds from the sale of the
Shares in such as manner as to subject the Company to regulation as an
“investment company” under the Investment Company Act of 1940, as amended.

 

6.5              Integration.
The Company shall not sell, offer for sale or solicit offers to buy or
otherwise negotiate in respect of any security (as defined in Section 2 of the
Securities Act) that would be integrated with the offer or sale of the Shares
in a manner that would require the registration under the Securities Act of the
sale of the Shares or the issuance of the Warrants or any Warrant Shares to the
Purchasers.

 

6.6              Reservation
of Common Stock for Issuance; Listing of Shares.  The Company agrees to reserve from its duly
authorized capital stock the total number of shares of Common Stock issuable
upon execution of this Agreement and upon the exercise in full of the
Warrants.  The Company agrees that at any
time, if and when its shares of Common Stock are listed on NASDAQ or any other
securities exchange, that it will use reasonable efforts to promptly list and
qualify the Shares and any Warrant Shares for trading on NASDAQ or such other
securities exchange.

 

6.7              Restrictions
on Certain Stock Issuances or Registrations.  The Company agrees that if a Demand Request (as
defined in the Registration Rights Agreement) is delivered on or prior to the
thirty (30) day anniversary of the date hereof, the Company shall not (i) issue
any shares of Common Stock that could be eligible for sale without restriction
under the Securities Act prior to the effectiveness of the Demand Registration
Statement (as defined in the Registration Rights Agreement),  or (ii) grant any
registration rights after the date hereof to any other Person that would
entitle such Person to have the sale of securities held by such Person
registered under the Securities Act by the Company under a registration
statement that is declared effective prior to the effectiveness of the Demand
Registration Statement, provided, that this Section 6.7 shall not be
deemed to restrict the ability of the Company to issue shares of Common Stock
upon the exercise or conversion of any options, warrants, convertible debt
instruments or other contingent securities outstanding on the date hereof, or
the ability of the Company to perform its obligations under the Existing
Agreements (as defined in the Registration Rights Agreement).

 

7              Indemnification.

 

7.1              By
the Company. The Company agrees to indemnify, defend and hold harmless each
Purchaser and its Affiliates and their respective officers, directors, agents,
employees, subsidiaries, partners, members and controlling persons
(collectively, the “Purchaser Indemnitees”)
to the fullest extent permitted by law from and against any and all claims,
losses, liabilities, damages, deficiencies, judgments, assessments, fines,
settlements, costs or expenses (including interest, penalties and reasonable
fees,

 

17

 

disbursements and other charges
of counsel) (collectively, “Losses”) based
upon, arising out of or otherwise in respect of any breach by the Company of
any representation, warranty, covenant or agreement of the Company contained in
this Agreement or in the Transaction Documents.

 

7.2              Limitations.

 

(a)           Time
for Claims. No Indemnifying Party will be liable for any Losses hereunder
arising out of a breach of representation or warranty unless a written claim
for indemnification is given by the Indemnified Party to the Indemnifying Party
on or prior to the third anniversary of the date on which a registration
statement covering the resale of the Shares initially became effective.

 

(b)           Maximum
Amount. Notwithstanding anything contained herein to the contrary, no
Indemnifying Party will be liable for any Losses to any Purchaser Indemnitee
hereunder in excess of the portion of the Aggregate Purchase Price actually
paid by the related Purchaser, provided, that the foregoing limitation
shall not apply in the case of Losses due to the bad faith, gross negligence or
willful misconduct of any Indemnifying Party.

 

7.3              Applicability.
Notwithstanding any term to the contrary in this Section 7, the indemnification
and contribution provisions of the Registration Rights Agreement shall govern
any claim made with respect to registration statements filed pursuant thereto
or sales made thereunder.

 

8              Miscellaneous
Provisions.

 

8.1              Rights
Cumulative. Each and all of the various rights, powers and remedies of the
parties shall be considered to be cumulative with and in addition to any other
rights, powers and remedies which such parties may have at law or in equity in
the event of the breach of any of the terms of this Agreement.  The exercise or partial exercise of any
right, power or remedy shall neither constitute the exclusive election thereof
nor the waiver of any other right, power or remedy available to such party.

 

8.2              Pronouns.
All pronouns or any variation thereof shall be deemed to refer to the
masculine, feminine or neuter, singular or plural, as the identity of the
person, persons, entity or entities may require.

 

8.3              Notices.

 

(a)           Any
notices, reports or other correspondence (hereinafter collectively referred to
as “correspondence”) required or permitted to be given hereunder shall be sent
by postage prepaid first class mail, overnight courier or telecopy, or
delivered by hand to the party to whom such correspondence is required or
permitted to be given hereunder. The date of giving any notice shall be the
date of its actual receipt.

 

	
  (b)

  	
   

  	
  All
  correspondence to the Company shall be addressed as follows:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  iBasis, Inc.

  
	
   

  	
   

  	
  20 Second
  Avenue

  
	
   

  	
   

  	
  Burlington,
  MA  01803

  
	
   

  	
   

  	
  Attention:  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  with a copy
  to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Johan V.
  Brigham

  

 

18

 

	
   

  	
   

  	
  Bingham
  McCutchen LLP

  
	
   

  	
   

  	
  150 Federal
  Street

  
	
   

  	
   

  	
  Boston, MA
  02110

  

 

(c)           All
correspondence to the Purchasers shall be addressed pursuant to the contact
information set forth on Schedule I
attached hereto.

 

(d)           Any
entity may change the address to which correspondence to it is to be addressed
by notification as provided for herein.

 

8.4              Captions.
The captions and paragraph headings of this Agreement are solely for the
convenience of reference and shall not affect its interpretation.

 

8.5              Severability.
Should any part or provision of this Agreement be held unenforceable or in
conflict with the applicable laws or regulations of any jurisdiction, the
invalid or unenforceable part or provisions shall be replaced with a provision
which accomplishes, to the extent possible, the original business purpose of
such part or provision in a valid and enforceable manner, and the remainder of
this Agreement shall remain binding upon the parties hereto.

 

8.6              Governing
Law. This Agreement shall be governed by and construed in accordance with
the internal and substantive laws of the State of New York without regard to
any conflicts of laws concepts which would apply the substantive law of some
other jurisdiction.

 

8.7              Waiver.
No waiver of any term, provision or condition of this Agreement, whether by
conduct or otherwise, in any one or more instances, shall be deemed to be, or
be construed as, a further or continuing waiver of any such term, provision or
condition or as a waiver of any other term, provision or condition of this
Agreement.

 

8.8              Assignment.
The rights and obligations of any party hereto shall inure to the benefit of
and shall be binding upon the authorized successors and permitted assigns of
such party. The Company may not assign this Agreement or any rights or
obligations hereunder without the prior written consent of each Purchaser. Each
Purchaser may assign or transfer any or all of its rights under this Agreement
to any Person provided that such assignee or transferee agrees in writing to be
bound, with respect to the transferred Shares and Warrant Shares, by the
provisions hereof that apply to such assigning or transferring Purchaser;
whereupon such assignee or transferee shall be deemed to be a “Purchaser” for
all purposes of this Agreement.

 

8.9              Survival. The respective representations and
warranties given by the parties hereto shall survive the Closing Date and the
consummation of the transactions contemplated herein for a period of time equal
to the time for which indemnification may be sought hereunder, without regard
to any investigation made by any party, provided that the
representations and warranties made under Section 3.5 shall survive
indefinitely. The respective covenants and agreements agreed to by a party
hereto shall survive the Closing Date and the consummation of the transactions
contemplated herein in accordance with their respective terms and conditions.

 

8.10            Entire
Agreement. This Agreement and the Transaction Documents constitute the
entire agreement between the parties hereto respecting the subject matter
hereof and supersedes all prior agreements, negotiations, understandings,
representations and statements respecting the subject matter hereof, whether
written or oral, including but not limited to the various Term Sheets dated
September [17], 2004 between the Company and the Purchasers.  The Company agrees that in the event it
enters into any agreement or understanding with any Purchaser pursuant to which
the Company grants such

 

19

 

Purchaser any rights or other
terms relating to the purchase, holding or disposition of Shares, Warrant
Shares or Warrants that are more favorable than those set forth herein or in
the Transaction Documents, the Company shall also grant each other Purchaser
such more favorable rights or other terms.

 

8.11            Amendments.
Any amendment, supplement or modification of or to any provision of this
Agreement, any waiver of any provisions of this Agreement shall be effective
only if made or given in writing and signed by the Company and the Majority
Purchasers, provided, that any amendment, supplement, modification or
waiver that is materially and disproportionately adverse to any Purchaser(s),
when compared to all other Purchasers, shall require the consent of such
Purchaser(s).

 

8.12            No
Third Party Rights. This Agreement is intended solely for the benefit of
the parties hereto and is not intended to confer any benefits upon, or create
any rights in favor of, any Person (including, without limitation, any
stockholder or debt holder of the Company) other than the parties hereto, provided,
that (a) the Investors (as defined in the Registration Rights Agreement) and
the Holders (as defined in the Warrant) are entitled to all rights and benefits
as third party beneficiaries of Sections 6.6 and 6.7 of this Agreement and (b)
each of the Purchaser Indemnitees that are not Purchasers are entitled to all
rights and benefits as third party beneficiaries of Article 7 of this
Agreement.

 

8.13            Counterparts. This Agreement may be executed
in any number of counterparts, each of which shall be deemed an original, but
all of which together shall constitute one and the same document. The parties
hereto confirm that any facsimile copy of another party’s executed counterpart
of this Agreement (or its signature page thereof) will be deemed to be an executed
original thereof.

 

[Signature
pages follow.]

 

20

 

Each
of the parties hereto has cause a counterpart of this Agreement to be duly
executed and delivered as of the date first written above.

 

THE COMPANY:

 

 

	
   

  	
  iBASIS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ofer Gneezy

  	
   

  
	
   

  	
  Name:

  	
  Ofer Gneezy

  
	
   

  	
  Title:

  	
  President and Chief Executive Officer

  
					

 

 

THE PURCHASERS:

 

 

	
   

  	
  THE IBS TURNAROUND FUND, L.P.

  
	
   

  	
   

  
	
   

  	
  By its General Partner, IBS Capital Corp.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David Taft

  	
   

  
	
   

  	
  Title: President, IBS Capital Corp

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE IBS OPPORTUNITY FUND, LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David Taft

  	
   

  
	
   

  	
  Title: Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  YORK INVESTMENT LIMITED

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Adam J. Semler

  	
   

  
	
   

  	
  Title: Chief Financial Officer of its Investment Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  YORK CREDIT OPPORTUNITIES FUND, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Adam J. Semler

  	
   

  
	
   

  	
  Title: Chief Financial Officer of its General Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  YORK CAPITAL MANAGEMENT, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Adam J. Semler

  	
   

  
	
   

  	
  Title: Chief Financial Officer of its General Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ELEVEN RINGS OPPORTUNITY FUND, LP

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Lindsay Leet

  	
   

  
	
   

  	
  Title: Managing Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NEW GENERATION LIMITED PARTNERSHIP

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ George Putnamm III

  	
   

  
	
   

  	
  Title:

  	
  President of its General Partner

  
					

 

 

	
   

  	
  NEW GENERATION TURNAROUND FUND

  (BERMUDA) LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ George Putnamm III

  	
   

  
	
   

  	
  Title:

  	
  President of its General Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PHOENIX PARTNERS, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Joann McNiff

  	
   

  
	
   

  	
  Title:

  	
  Authorized Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PHOENIX PARTNERS II, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Joann McNiff

  	
   

  
	
   

  	
  Title:

  	
  Authorized Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PHAETON INTERNATIONAL (BVI) LTD

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Joann McNiff

  	
   

  
	
   

  	
  Title:

  	
  Authorized Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  John C. Waterfall

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Joann McNiff

  	
   

  
	
   

  	
  Title:

  	
  Attorney-in-Fact for John C. Waterfall

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CROSSLINK CROSSOVER FUND IV, LP

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael J. Stark

  	
   

  
	
   

  	
  Title:

  	
  Managing Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DELTA GROWTH, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael J. Stark

  	
   

  
	
   

  	
  Title:

  	
  Managing Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  OFFSHORE CROSSLINK CROSSOVER FUND III

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael J. Stark

  	
   

  
	
   

  	
  Title:

  	
  Managing Member

  
					

 

 

	
   

  	
  /s/ George W. Haywood

  	
   

  
	
   

  	
  George W. Haywood

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  LOEB PARTNERS CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert Grubin

  	
   

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MILLER FAMILY PARTNERSHIP I

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Lloyd Miller

  	
   

  
	
   

  	
  Title:

  	
  Investment Advisor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MILLENNIUM PARTNERS L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Terry Feeney

  	
   

  
	
   

  	
  Title:

  	
  Vice Chairman and Chief Operating Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GREYWOLF
  CAPITAL OVERSEAS FUND

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William
  Troy

  	
   

  
	
   

  	
  Title:

  	
  Chief
  Operating Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GREYWOLF
  CAPITAL PARTNERS II LP

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William
  Troy

  	
   

  
	
   

  	
  Title:

  	
  Chief
  Operating Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  LC
  CAPITAL MASTER FUND, LTD.

  
	
   

  	
   

  
	
   

  	
  By its Investment Advisor, Lampe, Conway & Co.
  LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steven G. Lampe

  	
   

  
	
   

  	
  Title:

  	
  Managing Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SINGER
  CHILDREN’S MANAGEMENT TRUST

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gary
  Singer

  	
   

  
	
   

  	
  Title:

  	
  Investment
  Advisor

  
	
   

  	
   

  
					

 

 

Schedule I to Securities Purchase Agreement

 

 

	
  Purchasers

  	
   

  	
  Shares

  Purchased

  	
   

  	
  Warrant Shares

  Purchased

  	
   

  	
  25% of Warrant

  Shares

  Purchased

  	
   

  
	
  The IBS
  Turnaround Fund, L.P.

  2 International Place, 24th Floor

  Boston, Massachusetts  02110

  EIN: 93-1146657

  	
   

  	
  1,120,000

  	
   

  	
  168,000

  	
   

  	
  42,000

  	
   

  
	
  The IBS
  Opportunity Fund, Ltd.

  Ellen Skelton Building, Fisher’s

  Estate

  Road Town, Tortola, British Virgin

  Islands

  	
   

  	
  280,000

  	
   

  	
  42,000

  	
   

  	
  10,500

  	
   

  
	
  York
  Investment Limited

  c/o Euro-Dutch Trust Company

  (Bahamas) Limited

  Charlotte House, Charlotte Street

  Nassau, Bahamas

  	
   

  	
  952,000

  	
   

  	
  142,800

  	
   

  	
  35,700

  	
   

  
	
  York Credit
  Opportunities Fund, L.P.

  390 Park Avenue 15th Floor

  New York, New York  10022

  EIN#: 13-4153848

  	
   

  	
  300,000

  	
   

  	
  45,000

  	
   

  	
  11,250

  	
   

  
	
  York Capital
  Management, L.P.

  390 Park Avenue, 15th Floor

  New York, New York  10022

  EIN#: 13-3625276

  	
   

  	
  248,000

  	
   

  	
  37,200

  	
   

  	
  9,300

  	
   

  
	
  Eleven Rings
  Opportunity Fund LP

  2965 Woodside Road

  Woodside, CA  94062

  	
   

  	
  250,000

  	
   

  	
  37,500

  	
   

  	
  9,375

  	
   

  
	
  New
  Generation Limited Partnership

  c/o New Generation Advisers, Inc.

  225 Friend Street, Suite 801

  Boston, Massachusetts  02114

  EIN: 04-3077323

  	
   

  	
  139,000

  	
   

  	
  20,848

  	
   

  	
  5,212

  	
   

  
	
  New
  Generation Turnaround Fund

  (Bermuda) Ltd.

  c/o Appleby Corporate Services

  (Bermuda) Ltd.

  Canon’s Court, 22 Victoria St.

  Hamilton HM EX, Bermuda

  Taxpayer ID: 98-0163822

  	
   

  	
  461,000

  	
   

  	
  69,148

  	
   

  	
  17,287

  	
   

  
	
  Phoenix
  Partners, L.P.

  c/o Morgens Waterfall

  600 Fifth Avenue

  New York, New York  10020

  EIN#: 13-6272912

  	
   

  	
  737,800

  	
   

  	
  110,668

  	
   

  	
  27,667

  	
   

  

 

 

	
  Purchasers

  	
   

  	
  Shares

  Purchased

  	
   

  	
  Warrant Shares

  Purchased

  	
   

  	
  25% of Warrant

  Shares

  Purchased

  	
   

  
	
  Phoenix
  Partners II, L.P.

  c/o Morgens Waterfall

  600 Fifth Avenue

  New York, New York  10020

  EIN#: 84-1631449

  	
   

  	
  240,500

  	
   

  	
  36,072

  	
   

  	
  9,018

  	
   

  
	
  Phaeton
  International (BVI) Ltd

  c/oBISYS Hedge Fund Services (BVI)

  Limited

  Bison Court, Road Town

  Tortola, British

  Virgin Islands

  	
   

  	
  646,700

  	
   

  	
  97,004

  	
   

  	
  24,251

  	
   

  
	
  J.C.
  Waterfall

  One West 81st Street

  New York, New York

  SS#  ###-##-####

  	
   

  	
  375,000

  	
   

  	
  56,248

  	
   

  	
  14,062

  	
   

  
	
  Crosslink
  Crossover Fund IV, LP

  c/o Crosslink Capital

  Two Embarcadero Center

  Suite 2200  San Francisco, California
  94111

  EIN:  76-0737316

  	
   

  	
  1,110,000

  	
   

  	
  166,500

  	
   

  	
  41,625

  	
   

  
	
  Delta Growth

  c/o Crosslink Capital

  Two Embarcadero Center

  Suite 2200

  San Francisco,

  California 94111

  EIN:  94-3228612

  	
   

  	
  50,000

  	
   

  	
  7,500

  	
   

  	
  1,875

  	
   

  
	
  Offshore
  Crosslink Crossover Fund III

  c/o Crosslink Capital

  Two Embarcadero Center

  Suite 2200

  San Francisco, California 94111

  TIN:  98-0225068

  	
   

  	
  90,000

  	
   

  	
  13,500

  	
   

  	
  3,375

  	
   

  
	
  George W.
  Haywood

  81 Meredith Avenue

  Sag Harbor, New York 11963

  SS#:  ###-##-####

  	
   

  	
  1,000,000

  	
   

  	
  150,000

  	
   

  	
  37,500

  	
   

  
	
  Loeb
  Partners Corporation

  61 Broadway

  New York, New York  10006

  EIN: 13-3114801

  	
   

  	
  1,100,000

  	
   

  	
  165,000

  	
   

  	
  41,250

  	
   

  
	
  Miller
  Family Partnership I

  1201 Peachtree Street, N.E.

  Atlanta, Georgia 30361

  	
   

  	
  300,000

  	
   

  	
  45,000

  	
   

  	
  11,250

  	
   

  
	
  Millennium
  Partners L.P.

  Walkers, Walker House, Mary Street

  George Town, Grand Cayman,

  Cayman Islands

  EIN: 13-3521699

  	
   

  	
  1,000,000

  	
   

  	
  150,000

  	
   

  	
  37,500

  	
   

  

 

 

	
  Purchasers

  	
   

  	
  Shares

  Purchased

  	
   

  	
  Warrant Shares

  Purchased

  	
   

  	
  25% of Warrant

  Shares

  Purchased

  	
   

  
	
  Greywolf
  Capital Partners II LP

  411 W. Putnam Ave., Suite 265

  Greenwich, Connecticut 06830

  EIN#: 54-2104239

  	
   

  	
  585,000

  	
   

  	
  87,748

  	
   

  	
  21,937

  	
   

  
	
  Greywolf
  Capital Overseas Fund

  Queensgate House, South Church

  Street

  Georgetown, Grand Cayman, Cayman

  Islands

  	
   

  	
  915,000

  	
   

  	
  137,248

  	
   

  	
  34,312

  	
   

  
	
  LC Capital
  Mater Fund, Ltd.

  Queensgate House, South Church

  Street

  Georgetown, Grand Cayman, Cayman

  Islands

  	
   

  	
  2,100,000

  	
   

  	
  315,000

  	
   

  	
  78,750

  	
   

  
	
  Singer
  Children’s Management Trust

  c/o Romulus Holdings, Inc.

  560 Sylvan Avenue

  Englewood Cliffs, New Jersey  07632

  EIN#: 22-6765093

  	
   

  	
  1,000,000

  	
   

  	
  150,000

  	
   

  	
  37,500

  	
   

  

 

 

 

LIST OF EXHIBITS

 

	
  Exhibit A:

  	
   

  	
  Form of Warrant

  
	
  Exhibit B:

  	
   

  	
  Form of Investor Questionnaire

  
	
  Exhibit C:

  	
   

  	
  Form of Legal Opinion of Bingham McCutchen
  LLP

  
	
  Exhibit D:

  	
   

  	
  Form of Secretary’s Certificate

  
	
  Exhibit E:

  	
   

  	
  Form of Officer’s Certificate

  
	
  Exhibit F:

  	
   

  	
  Form of Transfer Agent Instructions

  
	
  Exhibit G:

  	
   

  	
  Form of Company Press ReleaseExhibit
10.2

 

Execution
Copy

 

iBASIS,
INC.

 

REGISTRATION
RIGHTS AGREEMENT

 

This REGISTRATION RIGHTS
AGREEMENT (this “Agreement”), dated as of
September 24, 2004, is by and among iBASIS, INC., a Delaware corporation (the “Company”), and each investor listed on Schedule I hereof (each such investor
individually, an “Investor” and,
collectively, the “Investors”).

 

WHEREAS, the Company has
agreed to issue and sell to the Investors, and the Investors have agreed to
purchase from the Company, an aggregate of 15,000,000 shares (the “Shares”) of the Company’s common stock, $0.001
par value per share (the “Common Stock”),
all upon the terms and conditions set forth in the Securities Purchase
Agreement, dated as of the date hereof, between the Company and the Investors
(the “Securities Purchase Agreement”); and

 

WHEREAS, the terms of the
Securities Purchase Agreement provide that it shall be a condition precedent to
the closing of the transactions thereunder, for the Company and the Investors
to execute and deliver this Agreement.

 

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

 

Section 1.  Registration Rights.  The Company will perform and comply, and
cause each of its Subsidiaries to perform and comply, with each of the
following provisions as are applicable to it. 
Each holder of Registrable Shares will perform and comply with each of
the following provisions as are applicable to such holder.

 

1.1.  Demand Registration.

 

1.1.1.  General. Any Investor or their
agent  may request, by written notice to
the Company (a “Demand Request”), that the
Company effect the registration under the Securities Act for a Public Offering
of all of the Registrable Shares held by the Investors.  Each of the Investors hereby appoints Tejas
Securities Group, Inc. as their agent for purposes of this Section 1.1.1.  Upon receipt of the Demand Request, the
Company will prepare and use reasonable best efforts to file with the SEC a
registration statement on Form S-1 (a “Demand
Registration Statement”) for the purpose of registering under the
Securities Act the resale by the holders thereof of all of the Registrable
Shares specified in the Demand Request. 
The Demand Registration Statement shall permit the Investors to offer
and sell, on a delayed or continuous basis pursuant to Rule 415 under the
Securities Act, any or all of the Registrable Shares.  The Company shall be required to keep the
Demand Registration Statement effective until such date that is the earlier of
(i) the date when all of the Registrable Shares registered thereunder shall
have been sold, or (ii) the second anniversary of the Closing Date, subject to
extension in the case of this clause (ii) by a period of time equal to the
aggregate number of days in which

 

 

the Company shall have
suspended use of the prospectus included in the Demand Registration Statement
pursuant to Section 1.1.2 below prior to such second anniversary (such date, as
it may be so extended, is referred to herein as the “Mandatory Registration
Termination Date”).  Thereafter, the
Company shall be entitled to withdraw the Registration Statement and the
Investors shall have no further right to offer or sell any of the Registrable
Shares pursuant to the Demand Registration Statement (or any prospectus
relating thereto).

 

1.1.2.  Change of Form; Limitations.  If, at any time following the date that the
Demand Registration Statement is declared effective by the SEC, the Company
becomes eligible to use Form S-3 for a Public Offering, the Company shall, upon
the written request of any Investor, use reasonable best efforts to file a
post-effective amendment to the Demand Registration Statement to convert such
Demand Registration Statement into a registration statement on Form S-3.  In the event that, in the reasonable and good
faith judgment of the Company, it is advisable to suspend use of the prospectus
included in or relating to the Demand Registration Statement due to pending
material developments or other events that have not yet been publicly disclosed
and as to which the Company reasonably and in good faith believes (x) public
disclosure would be detrimental to the Company and (y) a registration statement
could be materially misleading, or could omit a material fact necessary to make
the statements therein not materially misleading, absent such disclosure, the
Company shall notify all selling stockholders to such effect, and, upon receipt
of such notice, each such selling stockholder shall immediately discontinue any
sales of Registrable Shares pursuant to the Demand Registration Statement until
such selling stockholder has received copies of a supplemented or amended
prospectus or until such selling stockholder is advised in writing by the
Company that the then-current prospectus may be used and has received copies of
any additional or supplemental filings that are incorporated or deemed
incorporated by reference in such prospectus. 
Notwithstanding anything to the contrary herein, the Company shall not
exercise its rights under the foregoing sentence to suspend sales of
Registrable Shares for a period in excess of 30 days consecutively or 60 days
in any 365-day period (it being understood that other than pursuant to the
preceding sentence, the Company shall not be permitted to withdraw or suspend
any Demand Registration Statement prior to the Mandatory Registration
Termination Date).

 

1.1.3.  Payment of Expenses. The Company shall
pay all reasonable expenses of the Investors incurred in connection with the
registration of Registrable Shares pursuant to this Section 1.1 (including the
reasonable fees and expenses of a single legal counsel representing all
Investors) other than underwriting discounts and commissions, if any, and
applicable transfer taxes, if any.

 

1.1.4.  Furnish Information.  It shall be a condition precedent to the
obligations of the Company to take any action pursuant to this Section 1.1 that
the holders of the Registrable Shares shall furnish to the Company such
information regarding them, the Registrable Shares held by them, and the method
of

 

2

 

distribution of such
securities as the Company shall reasonably request and as shall be required in
order to effect any registration by the Company pursuant to this Section 1.1.

 

1.1.5.  Remedies.  Notwithstanding anything to the contrary in
this Agreement, the Investors’ sole remedy for the failure of the Company to
effect the registration under the Securities Act of the Registrable Shares
pursuant to this Section 1.1. within the time frame set forth in the Warrants
shall be the vesting of the Warrants in accordance with their terms.

 

1.2.  Piggyback Registration Rights.

 

1.2.1.  General.  Each time the Company proposes to register
any shares of Common Stock under the Securities Act, on a form which would
permit registration of Registrable Shares for sale to the public, for sale in a
Public Offering, the Company will promptly give notice to all holders of
Registrable Shares of its intention to do so. 
Any such holder may, by written response delivered to the Company within
20 days after receipt of such notice, request that some or all of the
Registrable Shares held by such holder be included in such registration.  The Company thereupon will use its reasonable
best efforts to cause to be included in such registration under the Securities
Act, all Registrable Shares which the Company has been so requested to register
by such holders, to the extent required to permit the disposition (in
accordance with the methods to be used by the Company or other holders of
shares of Common Stock in such Public Offering) of the Registrable Shares to be
so registered.  No registration of
Registrable Shares effected under this Section 1.2 shall relieve the Company of
any of its obligations to effect the registration of Registrable Shares
pursuant to Section 1.1 hereof.  The
Company may withdraw or suspend any registration covered by this Section 1.2 at
any time (subject, in the case of any registration also covered by Section 1.1
hereof, to any limitations set forth therein).

 

1.2.2.  Excluded Transactions.  The Company shall not be obligated to effect
any registration of Registrable Shares under this Section 1.2 incidental to the
registration of any of its securities in connection with:

 

(a)               Any Public Offering which is
carried out to effect (but not to finance) relating to employee benefit plans
or dividend reinvestment plans; or

 

(b)              Any Public Offering relating to the acquisition or
merger after the date hereof by the Company or any of its Subsidiaries of or
with any other businesses.

 

1.2.3.  Payment of Expenses. The Company shall
pay all reasonable expenses of the Investors incurred in connection with the
registration of the Registrable Shares pursuant to this Section 1.2 (including
the reasonable fees and expenses of a single legal counsel representing all
Investors) other than

 

3

 

underwriting discounts and
commissions, if any, and applicable transfer taxes, if any.

 

1.2.4.  Additional Procedures.  Each Holder of Registrable Shares
participating in any Public Offering pursuant to this Section 1.2 shall take
all such actions and execute all such documents and instruments that are
reasonably requested by the Company to effect the sale of their Registrable
Shares in such Public Offering, including, without limitation, being parties to
the underwriting agreement entered into by the Company and any other selling
stockholders in connection therewith and being liable severally (as to itself)
and not jointly in respect of the representations and warranties by, and the
other agreements (including without limitation customary selling stockholder
representations, warranties, indemnifications and “lock-up” agreements) of such
Holder for the benefit of the underwriters; provided, however,
that (a) with respect to individual representations, warranties, indemnities
and agreements of selling holders of Registrable Shares in such Public
Offering, the aggregate amount of such liability shall not exceed such holder’s
net proceeds from such offering and (b) to the extent selling holders of
Registrable Shares give further representations, warranties and indemnities,
then with respect to all other representations, warranties and indemnities of
sellers of Registrable Shares in such Public Offering, the aggregate amount of
such liability shall not exceed the lesser of (i) such holder’s pro rata
portion of any such liability, in accordance with such holder’s portion of the
total number of Registrable Shares included in the offering or (ii) such
holder’s net proceeds from such offering, provided, that no selling
holder of Registrable Shares shall have any liability with respect to
representations, warranties and indemnities given by any other holder of
Registrable Shares, and any selling holder shall be entitled to withdraw from
any Public Offering to the extent that any underwriter, as a condition to
participation in such Public Offering, requires such selling holder to give
representations that relate to any matters other than the ownership of
securities of the Company by such selling holder, such selling holder’s
authority to participate in such Public Offering and the legality of such
holder’s participation in such Public Offering or assume any other obligations
with respect to such Public Offering that are not reasonable and customary in
the light of the circumstances.

 

1.3.  Certain Other Provisions.

 

1.3.1.  Underwriter’s Cutback in connection with a
Piggyback Registration.  In
connection with any registration of shares of Common Stock pursuant to an
underwritten offering (other than any underwritten offering initiated by the
Investors under Section 1.1 of this Agreement), the underwriter may determine
that marketing factors (including, without limitation, an adverse effect on the
per share offering price) require a limitation of the number of shares of
Common Stock to be underwritten. 
Notwithstanding any contrary provision of Section 1.2 hereof, and
subject to the terms of this Section 1.3.1, the underwriter may limit the number
of shares which would otherwise be included in such registration.  Upon receipt of notice from the underwriter
of the need to reduce the

 

4

 

number of shares to be
included in the registration, the Company shall advise all holders of Common
Stock that would otherwise be registered and underwritten in such registration,
and the number of shares of Common Stock, including Registrable Shares, that
may be included in the registration shall be allocated:

 

(a)           first, (i) to the Company and, (ii) if the registration is
pursuant to a demand request made by a third party, to the holders making the
demand request;

 

(b)           second, pari passu to the holders of Registrable Shares
and other holders of shares of Common Stock having registration rights that are
pari passu with the rights of the holders of the Registrable Shares hereunder,
including but not limited to the parties under the Existing Agreements (as
defined below); provided, however, that no Registrable Shares requested
to be included in the registration by a holder shall be excluded from the
registration until all shares proposed to be registered by the Company’s
founders, officers, directors or employees are excluded from the registration;
and

 

(c)           third, to any others requesting registration of securities
of the Company pursuant to piggyback registration rights that are junior to the
rights provided to the holders of Registrable Shares hereunder;

 

provided, however, that if the Company has,
prior to the date hereof, or after the date hereof,  granted registration rights which are to be
treated on an equal basis with Registrable Shares for the purpose of the
exercise of the underwriter cutback, the registration rights granted to the
holders of any such shares of Common Stock shall be treated on an equal basis
with Registrable Shares for purposes of this underwriting cutback; provided,
further, that it is specifically agreed and acknowledged that the
registration rights granted (1) to Silicon Valley Bank pursuant to the
Registration Rights Agreement, dated on or around December 30, 2002, between
the Company and Silicon Valley Bank, (2) to certain holders pursuant to the
Amended and Restated Warrant and Registration Rights Agreement, dated February
21, 2003, by and among the Company and the warrant agent named therein, (3) to
certain holders pursuant to the 2004 Warrant and Registration Rights Agreement,
dated June 18, 2004, by and between the Company and the warrant agent named
therein and (4) to certain holders pursuant to the Registration Rights
Agreement, dated June 18, 2004, by and among the holders party thereto
(collectively, the “Existing Agreements”)
are to be treated on an equal basis with the Registrable Shares for the
purposes of this underwriting cutback.  No
securities excluded from the underwriting by reason of the underwriter’s
marketing limitation shall be included in such registration.  Upon delivery of a written request that
Registrable Shares be included in an underwritten offering pursuant to Section
1.2.1 hereof, the holder thereof may not thereafter elect to withdraw therefrom
without the written consent of the Company and the holders of at least 50% of
the Registrable Shares to be included in such registration, unless 50% or more
of the Registrable Shares it requested to

 

5

 

be included in such
registration are subject to an underwriter cutback, or any underwriter, as a
condition to participation in such Public Offering, requires such holder to
give representations that relate to any matters other than the ownership of
securities of the Company by such holder, such holder’s authority to
participate in such Public Offering and the legality of such holder’s
participation in such Public Offering.

 

1.3.2.  Registration Procedures.  In connection with the Company’s obligations
under Section 1.1 and 1.2 hereof to use its reasonable best efforts to effect a
registration of any Registrable Shares, the Company shall take appropriate and
customary actions in furtherance thereof, including, without limitation:

 

(a)           promptly filing with the SEC a registration statement and
using best efforts to cause such registration statement to become effective;

 

(b)           (i) furnishing to each Investor copies of all documents
filed with the SEC with respect to any registration statement filed pursuant to
this Section 1.3.2 prior to their being filed with the SEC, and using
commercially reasonable efforts to reflect in each such document, where
appropriate, when such documents are so filed with the SEC, such comments as
such Investors may reasonably propose, (ii) using commercially reasonable
efforts to cause its officers and directors, counsel and certified public
accountants to respond to such inquiries as shall be necessary, in the reasonable
opinion of such Investor, to conduct a reasonable investigation within the
meaning of the Securities Act, and (iii) notifying the Investors of any stop
order issued or threatened by the SEC with respect to any registration
statement filed pursuant to this Section 1.3.2 and use best efforts to prevent
the entry of such stop order or to remove it if entered;

 

(c)           (i) preparing and filing with the SEC such amendments and
supplements to any registration statement filed pursuant to this Section 1.3.2
and any prospectuses used in connection therewith as may be required to comply
with the Securities Act and to keep such registration statement effective (A)
if in connection with Section 1.1, until the Mandatory Registration Termination
Date and (B) if in connection with Section 1.2, for a period not to exceed 270
days from the date of effectiveness or such earlier time as the Registrable
Shares covered by such registration statement shall have been disposed of in
accordance with the intended method of distribution therefor or the expiration
of the time when a prospectus relating to such registration is required to be
delivered under the Securities Act (ii) respond as promptly as possible to any
comments received from the SEC with respect to such registration statement or
any amendment thereto and as promptly as possible provide the Investors true
and complete copies of all correspondence from and to the SEC relating to such
registration Statement (other than correspondence containing material nonpublic
information); and (iv) comply with the

 

6

 

provisions of the Securities
Act and the Exchange Act with respect to the disposition of all Registrable
Shares covered by such registration statement as so amended or in such
Prospectus as so supplemented;

 

(d)           using its best efforts to register or qualify such
Registrable Shares under the state securities or “blue sky” laws of such
jurisdictions as the sellers shall reasonably request; provided, however,
that the Company shall not be obligated to file any general consent to service
of process or to qualify as a foreign corporation in any jurisdiction in which
it is not so qualified or to subject itself to taxation in respect of doing
business in any jurisdiction in which it would not otherwise be so subject;

 

(e)           Notify the Investors and their counsel as promptly as
practicable (i) when the SEC notifies the Company whether there will be a
“review” of a registration statement filed pursuant to this Section 1.3.2 and
whenever the SEC comments in writing on such registration statement; and (ii)
when a registration statement filed pursuant to this Section 1.3.2, or any
post-effective amendment or supplement thereto, has become effective, and after
the effectiveness thereof: (A) of any request by the SEC or any other federal
or state governmental authority for amendments or supplements to such
registration statement or prospectus or for additional information; (B) of the
issuance by the SEC or any state securities commission of any stop order
suspending the effectiveness of such registration statement or the initiation
of any proceedings for that purpose; and (C) of the receipt by the Company of
any notification with respect to the suspension of the qualification or
exemption from qualification of any of the Registrable Shares for sale in any
jurisdiction, or the initiation or threatening of any proceeding for such
purpose;

 

(f)            Notify the Investors and their counsel as promptly as
possible of the happening of any event as a result of which the prospectus
included in or relating to a registration statement filed pursuant to this
Section 1.3.2 contains an untrue statement of a material fact or omits any fact
necessary to make the statements therein not misleading; and, thereafter, the
Company will as promptly as possible prepare (and, when completed, give notice
to each Investor) a supplement or amendment to such prospectus so that, as
thereafter delivered to the purchasers of such Registrable Shares, such
prospectus will not contain an untrue statement of a material fact or omit to
state any fact necessary to make the statements therein not misleading; provided
that upon such notification by the Company, the Investors will not offer or
sell Registrable Shares pursuant to the registration statement until the
Company has notified the Investors that it has prepared a supplement or
amendment to such prospectus and delivered copies of such supplement or
amendment to the Investors (it being understood and agreed by the Company that
the foregoing proviso shall in no way diminish or otherwise impair the
Company’s obligation to as promptly as possible prepare a prospectus

 

7

 

amendment or supplement as
above provided in this Section 1.3.2(f) and deliver copies of same as above
provided in Section 1.3.2(f) hereof);

 

(g)           Upon the occurrence of any event described in Section
1.3.2(f) hereof, as promptly as possible, prepare a supplement or amendment,
including a post-effective amendment, to the registration statement or a
supplement to the related prospectus or any document incorporated or deemed to
be incorporated therein by reference, and file any other required document so
that, as thereafter delivered, neither the registration statement nor such prospectus
will contain an untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements therein,
in light of the circumstances under which they are made, not misleading;

 

(h)           As promptly as possible furnish to each selling Investor,
without charge, such number of copies of a prospectus, including a preliminary
prospectus, in conformity with the requirements of the Securities Act, and such
other documents (including, without limitation, Prospectus amendments and
supplements) as each such selling Investor may reasonably request in order to
facilitate the disposition of the Registrable Shares covered by such prospectus
and any amendment or supplement thereto. The Company hereby consents to the use
of such prospectus and each amendment or supplement thereto by each of the
selling Investors in connection with the offering and sale of the Registrable
Shares covered by such prospectus and any amendment or supplement thereto to
the extent permitted by federal and state securities laws and regulations;

 

(i)            If such registration is an underwritten Public Offering,
furnish to each selling Investor (A) an opinion of the counsel representing the
Company for purposes of such registration, dated as of the closing under the
underwriting agreement with respect to both the effective date of the
applicable registration statement and the date of the closing under the
underwriting agreement, in the form delivered to the underwriters in such
underwritten public offering and addressed to such selling Investors, and (B) a
“cold comfort” letter, dated the date of the closing under the underwriting
agreement with respect to both the effective date of the applicable
registration statement and the date of the closing under the underwriting
agreement signed by the independent certified public accountants who have
certified the Company’s financial statements included in such registration
statement, in the form delivered to the underwriters in such underwritten
public offering, and addressed to such selling Investors;

 

(j)            If such registration includes an underwritten public
offering initiated by the Investors, (A) enter into and perform its obligations
under an underwriting agreement, in usual and customary form with the

 

8

 

managing underwriter of such
offering and (B) to the extent reasonably requested by the managing underwriter
for the offering or the selling Investors, take customary efforts to sell the
securities being offered, and cause such steps to be taken as to ensure such
good faith participation of senior management officers of the Company in “road
shows” as is customary; and

 

(k)           To the extent reasonably requested by the selling
Investors of Registrable Shares, take all other reasonable actions necessary to
expedite and facilitate disposition by such selling Investors of the
Registrable Shares pursuant to the applicable registration statement.

 

1.3.3.       Lock-Up.  If, in connection with any Public Offering,
the Company or the underwriters managing such Public Offering request that the
holders of the Registrable Shares enter into a “lock-up” agreement with respect
to the Registrable Shares held by them, the holders of the Registrable Shares
agree to act in a commercially reasonable manner in considering and responding
to any such request.

 

1.3.4.  Selection of Underwriters and Counsel.  The underwriters and legal counsel to be
retained in connection with any Public Offering contemplated by Section 1.2
hereof shall be selected by the Board.

 

1.3.5.  Transfer of Registration Rights.  Each Investor may assign or transfer any or
all of its rights hereunder to (i) any Affiliate of an Investor, (ii) any
subsidiary, parent, partner, retired partner, limited partner, shareholder or
member of an Investor or (iii) any family member or trust for the benefit of
any Investor, or (iv) any transferee who, after such transfer, holds at least
25% of the Registrable Shares (as adjusted for any stock dividends, stock
splits, combinations and reorganizations and similar events) originally issued
to such transferring or assigning Investor. 
Notwithstanding the foregoing, such rights may only be transferred or
assigned provided that all of the following additional conditions are
satisfied: (a) such transfer or assignment is effected in accordance with
applicable securities laws; (b) such transferee or assignee agrees in writing
to become subject to the terms of this Agreement; and (c) the Company is given
written notice by such transferring or assigning Investor of such transfer or
assignment, stating the name and address of the transferee or assignee and
identifying the Registrable Shares with respect to which such rights are being
transferred or assigned.  Upon any such,
and each successive, assignment or transfer to any permitted assignee or
transferee in accordance with the terms of this Section 1.3.5, such permitted
assignee or transferee shall be deemed to be an “Investor” for all purposes of
this Agreement.

 

1.4.  Indemnification and Contribution.

 

1.4.1.  Indemnities of the Company.  In the event of any registration of any
Registrable Shares or other debt or equity securities of the Company or any of
its

 

9

 

Subsidiaries under the
Securities Act pursuant to Section 1.1, Section 1.2 hereof or otherwise, and in
connection with any registration statement or any other disclosure document
produced by or on behalf of the Company or any of its Subsidiaries including,
without limitation, reports required and other documents filed under the
Exchange Act, and other documents pursuant to which any debt or equity
securities of the Company or any of its Subsidiaries are sold (whether or not
for the account of the Company or its Subsidiaries), the Company will, and
hereby does, and will cause each of its Subsidiaries, jointly and severally, to
indemnify and hold harmless each seller of Registrable Shares, any Person who
is or might be deemed to be a controlling Person of the Company or any of its
Subsidiaries within the meaning of Section 15 of the Securities Act or Section
20 of the Exchange Act, their respective direct and indirect partners, advisory
board members, directors, officers, trustees, members and stockholders, and
each other Person, if any, who controls any such seller or any such controlling
Person within the meaning of Section 15 of the Securities Act or Section 20 of
the Exchange Act (each such person being referred to herein as a “Covered
Person”), against any losses, claims, damages or liabilities (or actions or
proceedings in respect thereof), joint or several, to which such Covered Person
may be or become subject under the Securities Act, the Exchange Act, any other
securities or other law of any jurisdiction, the common law or otherwise, insofar
as such losses, claims, damages or liabilities (or actions or proceedings in
respect thereof) arise out of or are based upon (i) any untrue statement or
alleged untrue statement of any material fact contained or incorporated by
reference in any registration statement under the Securities Act, any
preliminary prospectus or final prospectus included therein, or any related
summary prospectus, or any amendment or supplement thereto, or any document
incorporated by reference therein, or any other such disclosure document
(including without limitation reports and other documents filed under the
Exchange Act and any document incorporated by reference therein) or other
document or report, (ii) any omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading or (iii) any violation or alleged violation by the
Company or any of its subsidiaries of any federal, state, foreign or common law
rule or regulation applicable to the Company or any of its Subsidiaries and
relating to action or inaction in connection with any such registration,
disclosure document or other document or report, and will reimburse such
Covered Person for any legal or any other reasonable expenses incurred by it in
connection with investigating or defending any such loss, claim, damage,
liability, action or proceeding; provided, however, that neither
the Company nor any of its Subsidiaries shall be liable to any Covered Person
in any such case to the extent that any such loss, claim, damage, liability,
action or proceeding arises out of or is based upon an untrue statement or
alleged untrue statement or omission or alleged omission made in such
registration statement, preliminary prospectus, final prospectus, summary
prospectus, amendment or supplement, incorporated document or other such
disclosure document or other document or report, in reliance upon and in
conformity with written information furnished to the Company or to any of its
Subsidiaries through an instrument duly executed by

 

10

 

such Covered Person
specifically stating that it is for use in the preparation thereof and that it
is used as so specified.  The indemnities
of the Company and of its subsidiaries contained in this Section 1.4.1 shall
remain in full force and effect regardless of any investigation made by or on
behalf of such Covered Person and shall survive any transfer of securities.

 

1.4.2.  Indemnities to the Company.  The Company and any of its Subsidiaries may
require, as a condition to including any securities in any registration
statement filed pursuant to this Agreement, that the Company and any of its
Subsidiaries shall have received an undertaking satisfactory to it from the
prospective seller of such securities, severally (as to itself) and not jointly
to indemnify and hold harmless the Company and any of its Subsidiaries, each
director of the Company or any of its Subsidiaries, each officer of the Company
or any of its Subsidiaries who shall sign such registration statement and each
other Person (other than such seller), if any, who controls the Company and any
of its Subsidiaries within the meaning of Section 15 of the Securities Act or
Section 20 of the Exchange Act and each other prospective seller of such
securities with respect to any statement in or omission from such registration
statement, any preliminary prospectus, final prospectus or summary prospectus
included therein, or any amendment or supplement thereto, or any other disclosure
document (including, without limitation, reports and other documents filed
under the Exchange Act or any document incorporated therein) or other document
or report, if such statement or omission was made in reliance upon and in
conformity with written information furnished to the Company or any of its
Subsidiaries through an instrument executed by such seller specifically stating
that it is for use in the preparation thereof and that it is used as so
specified.  Such indemnity shall remain
in full force and effect regardless of any investigation made by or on behalf
of the Company, any of its Subsidiaries or any such director, officer or
controlling Person and shall survive any transfer of securities.

 

1.4.3.  Contribution.  If the indemnification provided for in
Section 1.4.1 or Section 1.4.2 hereof is unavailable to a party that would have
been entitled to indemnification pursuant to the foregoing provisions of this
Section 1.4 (an “Indemnitee”) in respect of any losses, claims, damages
or liabilities (or actions or proceedings in respect thereof) referred to
therein, then each party that would have been an indemnifying party thereunder
shall, in lieu of indemnifying such Indemnitee, contribute to the amount paid
or payable by such Indemnitee as a result of such losses, claims, damages or
liabilities (or actions or proceedings in respect thereof) in such proportion
as is appropriate to reflect the relative fault of such indemnifying party on
the one hand and such Indemnitee on the other in connection with the statements
or omissions which resulted in such losses, claims, damages or liabilities (or
actions or proceedings in respect thereof). 
The relative fault shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information
supplied by such indemnifying party or such Indemnitee and the parties’
relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission.

 

11

 

The parties agree that it
would not be just or equitable if contribution pursuant to this Section 1.4.3
were determined by pro rata allocation or by any other method of allocation
which does not take account of the equitable considerations referred to in the
preceding sentence.  The amount paid or
payable by a contributing party as a result of the losses, claims, damages or
liabilities (or actions or proceedings in respect thereof) referred to above in
this Section 1.4.3 shall include any legal or other expenses reasonably
incurred by such Indemnitee in connection with investigating or defending any
such action or claim.  No Person guilty
of fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any Person who was not
guilty of such fraudulent misrepresentation.

 

1.4.4.  Conduct of Indemnification Proceedings.  Any Person entitled to indemnification
hereunder (the “Indemnified Party”) agrees to give prompt written notice
to the indemnifying party (the “Indemnifying Party”) after the receipt
by the Indemnified Party of any written notice of the commencement of any
action, suit, proceeding or investigation or threat thereof made in writing for
which the Indemnified Party intends to claim indemnification or contribution
pursuant to this Agreement; provided, however, that, the failure
so to notify the Indemnifying Party shall not relieve the Indemnifying Party of
any liability that it may have to the Indemnified Party hereunder unless and to
the extent such Indemnifying Party is prejudiced by such failure.  If notice of commencement of any such action
is given to the Indemnifying Party as above provided, the Indemnifying Party
shall be entitled to participate in and, to the extent it may wish, jointly
with any other Indemnifying Party similarly notified, to assume the defense of
such action at its own expense, with counsel chosen by it and reasonably
satisfactory to such Indemnified Party. 
The Indemnified Party shall have the right to employ separate counsel in
any such action and participate in the defense thereof, but the fees and
expenses of such counsel shall be paid by the Indemnified Party unless (i) the
Indemnifying Party agrees to pay the same, (ii) the Indemnifying Party fails to
assume the defense of such action with counsel satisfactory to the Indemnified
Party in its reasonable judgment or (iii) the named parties to any such action
(including, but not limited to, any impleaded parties) reasonably believe  that the representation of such
Indemnified Party and the Indemnifying Party by the same counsel would be
inappropriate under applicable standards of professional conduct.  In the case of clause (ii) above and (iii)
above, the Indemnifying Party shall not have the right to assume the defense of
such action on behalf of such Indemnified Party.  No Indemnifying Party shall be liable for any
settlement entered into without its written consent, which consent shall not be
unreasonably withheld.  No Indemnifying
Party shall, without the written consent of the Indemnified Party, effect the
settlement or compromise of, or consent to the entry of any judgment with
respect to, any pending or threatened action or claim in respect of which
indemnification or contribution may be sought hereunder (whether or not the
Indemnified Party is an actual or potential party to such action or claim)
unless such settlement, compromise or judgment (A) includes an unconditional
release of the Indemnified Party from all liability arising out of such action
or claim and (B) does not include a statement as to, or

 

12

 

an admission of, fault,
culpability or a failure to act by or on behalf of any Indemnified Party.  The rights afforded to any Indemnified Party
hereunder shall be in addition to any rights that such Indemnified Party may
have at common law, by separate agreement or otherwise.

 

1.4.5.  Limitation on Liability of Holders of
Registrable Shares.  The aggregate
liability of each holder of Registrable Shares in respect of any
indemnification or contribution obligation of such holder arising under this
Section 1.4 shall not in any event exceed an amount equal to the net proceeds
to such holder (after deduction of all underwriters’ discounts and commissions)
from the disposition of the Registrable Shares disposed of by such holder
pursuant to the registration giving rise to such liability.

 

1.5.  Reports Under Exchange Act.  In order to provide to the holders of
Registrable Shares the benefits of Rule 144 and any other rule or regulation of
the SEC that may at any time permit any such holder to sell securities of the
Company to the public without registration, and in order to make it possible
for the sale of Registrable Shares to be registered pursuant to a registration
on Form S-3 if the Company is then otherwise eligible to use such Form, the
Company agrees to:

 

(a)           make and keep public information available, as those terms
are understood and defined in Rule 144;

 

(b)           take such action, including the registration of its Common
Stock under Section 12 of the Exchange Act, as is necessary to enable the
holders of Registrable Shares to utilize Form S-3 for the resale of their
Registrable Shares (ignoring, for this purpose, the provisions of Items I.A.5
and I.B.3 of the General Instructions thereto);

 

(c)           file with the SEC in a timely manner all reports and other
documents required of the Company under the Securities Act and the Exchange
Act; and

 

(d)           furnish to any holder of Registrable Shares, so long as
the holder owns any Registrable Shares, forthwith upon request (i) a written
statement by the Company that it has complied with the reporting requirements
of Rule 144, the Securities Act and the Exchange Act, or that it qualifies as a
registrant whose securities may be resold in a secondary offering pursuant to
Form S-3; (ii) a copy of the most recent annual or quarterly report of the
Company filed with the SEC and such other reports and documents so filed by the
Company; and (iii) such other information as may be reasonably requested in
availing any holder of Registrable Shares any rule or regulation of the SEC
which permits the selling of any such securities without registration or
pursuant to such form.

 

Section 2.  Rule 144.  The Company shall use its reasonable best
efforts to file the reports required to be filed by it under the Exchange Act
in a timely manner and, if at any time the

 

13

 

Company is not required to file such reports, it will, upon the request
of any Investor, make publicly available other information so long as necessary
to permit sales of its securities pursuant to Rule 144 of the Securities Act.  The Company covenants to take such further
action as any Investor may reasonably request, all to the extent required from
time to time to enable such Investor to sell Registrable Shares without
registration under the Securities Act within the limitation of the exemptions
provided by Rule 144.  The Company will
provide a copy of this Agreement to prospective purchasers of Registrable
Shares identified to the Company by the Investors upon request.  Upon the request of any Investor, the Company
shall deliver to such Investor a written statement as to whether it has
complied with such requirements.

 

Section 3.  Definitions.  For the purposes of this Agreement, the
following terms have the meanings below:

 

“Affiliate” shall
mean, with respect to the Company or any of its Subsidiaries (or any other
specified Person), any other Person which, directly or indirectly controls or
is controlled by or is under direct or indirect common control with the Company
or such Subsidiary (or such specified Person), and, without limiting the
generality of the foregoing, shall include (a) any other Person which
beneficially owns or holds 10% of more of any class of voting securities of
such Person or 10% or more of the equity interest in such Person, (b) any other
Person of which such Person beneficially owns or holds 10% or more of any class
of voting securities or in which such Person beneficially owns or holds 10% or
more of the equity interest in such Person and (c) any director or executive
officer of such Person.  For the purposes
of this definition, the term “control” (including, with correlative meanings,
the terms “controlled by” and “under common control with”), as used with
respect to any Person, means the possession, directly or indirectly, of the
power to direct or cause the direction of the management and policies of such
Person, whether through the ownership of voting securities or by contract or
otherwise.

 

“Agreement” shall
have the meaning set forth in the first paragraph of this Agreement.

 

“Board” shall mean
the Board of Directors of the Company.

 

“Closing Date” shall
have the meaning ascribed to such term in the Securities Purchase Agreement.

 

“Common Stock” shall
have the meaning set forth in the Preamble hereof.

 

“Company” shall have
the meaning set forth in the Preamble hereof.

 

“Covered Person”
shall have the meaning set forth in Section 1.4.1 hereof.

 

“Demand Registration
Statement  shall have the meaning set
forth in Section 1.1.1 hereof.

 

“Demand Request”
shall have the meaning set forth in Section 1.1.1 hereof.

 

14

 

“Demand Notice” shall
have the meaning set forth in Section 1.1.1 hereof.

 

“Exchange Act” shall
mean the Securities Exchange Act of 1934, as in effect from time to time.

 

“Exchange Agreement”
shall have the meaning set forth in the second paragraph hereof.

 

“Existing Agreements”
shall have the meaning set forth in Section 1.3.1. hereof.

 

“Indemnitee” shall
have the meaning set forth in Section 1.4.3 hereof.

 

“Indemnified Party”
shall have the meaning set forth in Section 1.4.4 hereof.

 

“Indemnifying Party”
shall have the meaning set forth in Section 1.4.4 hereof.

 

“Investors” shall
have the meaning set forth in the Preamble hereof.

 

“Majority Holders”
shall mean, as of any date, the holders of a majority of the Registrable Shares
outstanding on such date.

 

“Mandatory Registration
Termination Date” shall have the meaning set forth in Section 1.1.1 hereof.

 

“Person” shall mean
any individual, firm, corporation, company, partnership, trust, incorporated or
unincorporated association, limited liability company, joint venture, joint
stock company, government (or an agency or political subdivision thereof) or
other entity of any kind, and shall include any successor (by merger or
otherwise) of any such entity.

 

“Public Offering”
shall mean a public offering and sale of Common Stock for cash pursuant to an
effective registration statement under the Securities Act.

 

“Registrable Shares” means, at the relevant time of reference
thereto, the Shares and the Warrant Shares (including any shares of capital
stock that may be issued in respect thereof pursuant to a stock split, stock
dividend, recombination, reclassification or the like), provided, however, that
the term “Registrable Shares” shall not include any of the Shares or Warrant
Shares that are actually sold pursuant to a Registration Statement that has
been declared effective under the Securities Act by the SEC.

 

“Registration Statement”
(whether or not capitalized) shall mean any registration statement of the
Company filed with the SEC on the appropriate form pursuant to the Securities
Act which covers any Registrable Shares pursuant to the provisions of this
Agreement and all amendments and supplements to any such Registration
Statement, including post-effective amendments, all exhibits thereto and all
materials incorporated by reference therein.

 

“Rule 144” shall mean
Rule 144 under the Securities Act (or any successor Rule).

 

15

 

“SEC” means the United States Securities and Exchange Commission.

 

“Securities” shall
mean any debt or equity securities of the Company, whether now or hereafter
authorized, and any instrument convertible into or exchangeable for Securities
or a Security.  “Security” shall
mean one of the Securities.

 

“Securities Act”
shall mean the Securities Act of 1933, as in effect from time to time.

 

“Securities Purchase
Agreement” shall have the meaning set forth in the Preamble hereof.

 

“Shares” shall have
the meaning set forth in the Preamble hereof.

 

“Subsidiary” shall
mean, for any Person, (i) a corporation a majority of whose voting stock is at
the time, directly or indirectly, owned by such Person, by one or more
Subsidiaries of such Person or by such Person and one or more Subsidiaries of
such Person, (ii) a partnership in which such Person or a Subsidiary of such
Person is, at the date of determination, a general or limited partner of such
partnership, but only if such Person or its Subsidiary is entitled to receive
more than 50% of the assets of such partnership upon its dissolution, (iii) a
limited liability company, a majority of whose membership interests is, at the
time, directly or indirectly owned by such Person or with respect to which such
Person has a right, under any scenario, to receive 50% or more of the
distributions of the assets of such limited liability company upon its
dissolution, or (iv) any other Person (other than a corporation or partnership)
in which such Person, a Subsidiary of such Person or such Person and one or
more Subsidiaries of such Person, directly or indirectly, at the date of
determination thereof, has (a) at least a majority ownership interest or (b)
the power to elect or direct the election of a majority of the directors or
other governing body of such Person.

 

“Warrants” means the warrants to purchase Common Stock, dated as of
the date hereof, issued by the Company to the Investors pursuant to the
Securities Purchase Agreement, a form of which is attached hereto as Exhibit A.

 

“Warrant Shares” means the shares of Common Stock issued or issuable
upon the exercise of the Warrants.

 

Section 4.  Notices.  Any notice or demand authorized by this
Agreement to be given or made by any holder of Registrable Shares to or on the
Company shall be sufficiently given or made when and if delivered by facsimile
transmission (provided confirmation of receipt is received immediately
thereafter) or when received, if deposited in the mail, first class or
registered, postage prepaid, addressed, as follows:

 

iBasis, Inc.

20 Second Avenue

Burlington, MA  01803

Attention: Chief Financial
Officer

Facsimile No.: 781-505-7304

 

16

 

with a copy to:

 

Bingham McCutchen LLP

150 Federal Street

Boston, MA 02110

Attention: Johan V. Brigham

Facsimile No.: 617-951-8736

 

if to an Investor, at the
corresponding address set forth for such Investor on Schedule I.

 

Any notice pursuant to this
Agreement to be given by the Company to any holder of Registrable Shares shall
be sufficiently given when and if delivered by facsimile transmission (provided
confirmation of receipt is received immediately thereafter) or deposited in the
mail, first-class or registered, postage prepaid, addressed (until another
address is filed in writing by such holder with the Company).

 

Section 5.  Supplements and Amendments.  Any supplement or amendment of this Agreement
shall be in writing and executed and delivered by the Majority Holders and
Company; provided, that any amendment or supplement that is materially
and disproportionately adverse to any Holder(s), when compared to all other
Holders, shall require the consent of such Holder(s).

 

Section 6.  Successors and Assigns.  All the covenants and provisions of this
Agreement by or for the benefit of the Company shall bind and inure to the
benefit of its successors and assigns hereunder.

 

Section 7.  Governing Law; Submission to Jurisdiction:
Waiver of Jury Trial.  This Agreement
shall be deemed to be a contract made under the laws of the State of New York
and for all purposes shall be governed by and construed in accordance with the
internal laws of said State, without regard to principles of conflicts of
laws.  Each party hereto hereby submits
to the nonexclusive jurisdiction of the United States District Court for the
State of New York and of any New York state court sitting in New York for
purposes of all legal proceedings arising out of or relating to this agreement
or the transactions contemplated hereby. 
Each party hereto irrevocably waives, to the fullest extent permitted by
law, any objection which it may now or hereafter have to the laying of the
venue of any such proceeding brought in such a court and any claim that any
such proceeding brought in such a court has been brought in an inconvenient
forum.

 

Section 8.  Exercise of Rights and Remedies.  No delay of or omission in the exercise of
any right, power or remedy accruing to any party as a result of any breach or
default by any other party under this Agreement shall impair any such right,
power or remedy, nor shall it be construed as a waiver of or acquiescence in
any such breach or default, or of any similar breach or default occurring
later; nor shall any such delay, omission or waiver of any single breach or
default be deemed a waiver of any other breach or default occurring before or
after that waiver.

 

17

 

Section 9.  Benefits of this Agreement.  Nothing in this Agreement shall be construed
to give to any Person or corporation other than the Company and the holders of
the Registrable Shares (including any holder of a beneficial interest in any
Registrable Shares) any legal or equitable right, remedy or claim under this
Agreement, and this Agreement shall be for the sole and exclusive benefit of
the Company and the holders of the Registrable Shares (including any holder of
a beneficial interest in any Registrable Shares).

 

Section 10.  No Inconsistent Agreements.  The Company has not, as of the date hereof,
entered into, nor shall it, on or after the date hereof, enter into, any agreement
with respect to its securities that is inconsistent with the rights granted to
the Investors herein or otherwise conflicts with the provisions hereof.  If, after the date hereof, the Company enters
into an agreement or other commitment with any other Person that has the effect
of establishing registration rights with respect to the Company’s capital stock
the terms of which are pari passu or more favorable, taken as a whole, to such
Person than the registration rights established in favor of the holders of
Registrable Shares pursuant to Section 1.1 or Section 1.2 hereof, then the
Company will promptly so notify such holders in writing, and the Company shall,
without the necessity of any action on the part of such holders, extend the
benefits of such pari passu or more favorable terms to such holders as if such
terms were contained in this Agreement, or permit such holders to enter into
such other agreement establishing such rights in lieu of this agreement.

 

Section 11.  Severability.  If any one or more of the provisions
contained herein, or the application thereof in any circumstance, is held
invalid, illegal or unenforceable, the validity, legality and enforceability of
any such provision in every other respect and of the remaining provisions contained
herein shall not be affected or impaired thereby.

 

Section 12.  Securities Held by the Company.  Whenever the consent or approval of holders
of a specified percentage of Registrable Shares is required hereunder,
Registrable Shares held by the Company or their Affiliates (other than
subsequent holders of Registrable Shares if such subsequent holders are deemed
to be Affiliates solely by reason of their holdings of such Registrable Shares)
shall not be counted in determining whether such consent or approval was given
by the holders of such required percentage.

 

Section 13.  Counterparts.  This Agreement may be executed in any number
of counterparts and each of such counterparts shall for all purposes be deemed
to be an original, and all such counterparts shall together constitute but one
and the same instrument.

 

Section 14.  Headings.  The headings in this Agreement are for
convenience of reference only and shall not limit or otherwise affect the
meaning hereof.

 

[Signature
page follows]

 

18

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed, as of the day
and year first above written.

 

 

	
   

  	
  iBASIS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ofer Gneezy

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Ofer Gneezy

  
	
   

  	
   

  	
  Title:

  	
  President and

  Chief Executive Officer

  
					

 

 

THE INVESTORS:

 

 

	
   

  	
  THE IBS TURNAROUND FUND, L.P.

  
	
   

  	
   

  
	
   

  	
  By its General Partner, IBS Capital Corp.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David Taft

  	
   

  
	
   

  	
  Title: President, IBS Capital Corp

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE IBS OPPORTUNITY FUND, LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David Taft

  	
   

  
	
   

  	
  Title: Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  YORK INVESTMENT LIMITED

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Adam J. Semler

  	
   

  
	
   

  	
  Title: Chief Financial Officer of its Investment Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  YORK CREDIT OPPORTUNITIES FUND, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Adam J. Semler

  	
   

  
	
   

  	
  Title: Chief Financial Officer of its General Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  YORK CAPITAL MANAGEMENT, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Adam J. Semler

  	
   

  
	
   

  	
  Title: Chief Financial Officer of its General Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ELEVEN RINGS OPPORTUNITY FUND, LP

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Lindsay Leet

  	
   

  
	
   

  	
  Title: Managing Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NEW GENERATION LIMITED PARTNERSHIP

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ George Putnamm III

  	
   

  
	
   

  	
  Title:

  	
  President of its General Partner

  
					

 

2

 

	
   

  	
  NEW GENERATION TURNAROUND FUND

  (BERMUDA) LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ George Putnamm III

  	
   

  
	
   

  	
  Title:

  	
  President of its General Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PHOENIX PARTNERS, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Joann McNiff

  	
   

  
	
   

  	
  Title:

  	
  Authorized Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PHOENIX PARTNERS II, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Joann McNiff

  	
   

  
	
   

  	
  Title:

  	
  Authorized Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PHAETON INTERNATIONAL (BVI) LTD

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Joann McNiff

  	
   

  
	
   

  	
  Title:

  	
  Authorized Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  John C. Waterfall

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Joann McNiff

  	
   

  
	
   

  	
  Title:

  	
  Attorney-in-Fact for John C. Waterfall

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CROSSLINK CROSSOVER FUND IV, LP

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael J. Stark

  	
   

  
	
   

  	
  Title:

  	
  Managing Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DELTA GROWTH, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael J. Stark

  	
   

  
	
   

  	
  Title:

  	
  Managing Member

  
	
   

  	
  OFFSHORE CROSSLINK CROSSOVER FUND III

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael J. Stark

  	
   

  
	
   

  	
  Title:

  	
  Managing Member

  
					

 

3

 

	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ George W. Haywood

  	
   

  
	
   

  	
  George W. Haywood

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  LOEB PARTNERS CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert Grubin

  	
   

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MILLER FAMILY PARTNERSHIP I

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Lloyd Miller

  	
   

  
	
   

  	
  Title:

  	
  Investment Advisor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MILLENNIUM PARTNERS L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Terry Feeney

  	
   

  
	
   

  	
  Title:

  	
  Vice Chairman and Chief Operating Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GREYWOLF
  CAPITAL OVERSEAS FUND

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William
  Troy

  	
   

  
	
   

  	
  Title:

  	
  Chief
  Operating Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GREYWOLF
  CAPITAL PARTNERS II LP

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William
  Troy

  	
   

  
	
   

  	
  Title:

  	
  Chief
  Operating Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  LC
  CAPITAL MASTER FUND, LTD.

  
	
   

  	
   

  
	
   

  	
  By its Investment Advisor, Lampe, Conway & Co.
  LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steven G. Lampe

  	
   

  
	
   

  	
  Title:

  	
  Managing Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SINGER
  CHILDREN’S MANAGEMENT TRUST

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gary
  Singer

  	
   

  
	
   

  	
  Title:

  	
  Investment
  Advisor

  
					

 

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00072-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00072-of-00352.parquet"}]]