Document:

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                                                                  EXHIBIT 10.17

                                SERVICE CONTRACT

    THIS AGREEMENT made as of the 2nd day of DECEMBER, 1999, by and between
iCrystal Inc., a software development company incorporated under the laws of the
state of Delaware (hereinafter called the "Company") and DOUGLAS SLAMKO,
BUSINESSMAN of the city of SURREY, in the province of BC, (hereinafter called
the "Contractor")-

                                   WITNESSETH

         WHEREAS, the Contractor is about to be or is engaged by the Company
and has or will thereby become acquainted with the Company's business,
records, and other confidential information, and

         WHEREAS, the Company is engaged in the business of software and
website development; and

         WHEREAS, the parties hereto acknowledge that the goodwill of the
Company and the contained patronage of its customers and a list of names,
addresses, and phone numbers of its customers or potential customers or leads
constitutes a principal asset of the Company, the same being acquired through
its efforts and the expenditure of time and money; and

         WHEREAS, each of the Contractors, or associates of the Company hold
a position of trust and confidence and are in large measure enabled by such
association to become acquainted with the many customers, contacts and
associates of the Company, their names, addresses, phone numbers, and, with
other of the Company's business, security, and confidential matters- and

         WHEREAS, the parties hereto acknowledge the necessity of restrictive
covenants and non-solicitation covenants of the Contractor herein set forth, and
for the reasonable and proper protection of the goodwill of the Company's
business, and that the same constitutes a material portion of the consideration
of engagement.

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

                  1. DUTIES. The Company or its affiliates or subsidiaries
engages the Contractor as a PRESIDENT. Contractor's responsibilities, duty and
authority shall be those commonly associated with such position including, but
not limited to, the following duties:

1.       ORGANIZES, IMPLEMENT, AND OVERSEE THE COMPANY, AS DIRECTED BY THE BOARD
         OF DIRECTORS.
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2.       TAKE DIRECT CONTROL OVER THE COMPANY'S MARKETING PROGRAM.
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         2.       COMPENSATION. Beginning on the 2 day of December, 1999, the
Company shall pay, and the Contractor agrees to accept as compensation for
the services to be rendered herein, the sum of $5,000.00 US per month. In
addition, the Contractor shall receive 100,000 COMMON SHARES OF THE COMPANY
ON OR BEFORE FEB. 3, 2000, unless this Agreement has been previously
terminated by either party. The Contractor's monetary compensation open to
review from time to time whereupon the Contractor's compensation may increase
depending upon the performance of the Contractor

         3-       FURTHER OBLIGATIONS OF CONTRACTOR.  The Contractor agrees
as follows:

         (a)      To exercise and carry out all rules, regulations, duties and
                  policies of the Company, and observe all such directions and
                  restrictions as the Company may, from time to time, impose
                  upon the Contractor.

         (b)      During the term of this Agreement, not to engage in any
                  business, calling, or enterprise which is or may be
                  competitive or contrary to the welfare, interest or benefit of
                  the business of the Company.

         (c)      During the term of this Agreement, to provide the services of
                  DOUGLAS SLAMKO on a full time basis to carry out the
                  obligations of the Contractor. If DOUGLAS SLAMKO is unable to
                  perform the obligations contained herein, then the Contractor-
                  will supply a substitute individual it being understood by
                  both parties that the Company, after reviewing the substitute
                  individual's resume, will have the right to terminate. this
                  Agreement if it determines that, in its sole discretion, the
                  substitute individual does not have the same skills or
                  qualifications as that of DOUGLAS SLAMKO.

         4.       TERM. The services shall begin on DEC 2, 1999 and shall
continue at will until terminated by either party giving notice. Either party
may terminate this Agreement upon fourteen (14) days prior written notice to
the other. The Company reserves the right to terminate this Agreement at any
time during the first six (6) months or at any other time for cause.

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         5.       CONFIDENTIAL INFORMAT1ON. All confidential information and
trade secrets, including but not limited to, names and lists of clientele or
licensees, software, specifications, suppliers, operations or technical
manuals, and all information, files and records referring to, or relating
thereto, however maintained are valuable, special ,and unique assets of the
Company and the sole and exclusive property of the Company. Any of the
projects in which the Contractor works on, on behalf of the Company, become
and are the sole property of the Company.

         6.       COVENANT NOT TO COMPETE. Upon termination of the
Contractor's services, the Contractor, any of it's officers or directors, or
any individual associated with the Contractor shall not, for a period of one
(1) year, either directly or indirectly, enter into or engage in the business
of software, systems administration, security, or website development
specifically designed for use in Internet gaming.

         7.       FURTHER DUTIES OF THE CONTRACTOR. The Contractor guarantees
to have a qualified person, acceptable to the Company, available at the
Company's place of business no less than 40 hours a week. The Contractor
should be aware that duties associated with this Agreement may involve travel
from the Company's place of business to various locations throughout the
world.

         8.       DUTIES AFTER TERMINATION OF AGREEMENT. The Contractor
further agrees that upon termination of this Agreement, Contractor will
immediately surrender to the company all samples, licensee contact
information, price lists, brochures, supplier, books and records, documents,
operations or technical manuals, software (either developed or under
development) of or in connection with the Company's licensees or business,
passwords, codes, security technical information and protocols and all other
in the Contractor's possession which belongs to the Company, it being
distinctly understood that all of such items, including all software which is
or was developed by the Contractor is the property of the Company.

         9.       SERVABILITY. The invalidity or unenforceability of any
provision in this Agreement shall in no way affect the validity or
enforceability of any other provision.

         10.       BENEFIT. This Agreement shall insure to the benefit of and
be binding upon the Company, its successors and assigns, and the Contractor
and its heirs, executors, administrators and legal representatives.

         11.       SITUS. This Agreement shall be construed and governed in
accordance with the laws of the province of British Columbia.

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         12.       PRIOR AGREEMENTS. This Agreement supersedes any prior
written or verbal agreements.

         13.       ARBITRATION. Any controversy relating to this Agreement or
the interpretation thereof shall be settled by arbitration in the city of
Vancouver, B.C., pursuant to the rules then in place for the province of
British Columbia.

         14.       ADDRESS. The address's for each party to receive any
formal notice or notice's from the other party are as follows:

COMPANY                                CONTRACTOR

iCrystal Inc.                          DOUGLAS SLAMKO
3237 - King George Hwy                 ----------------------
Suite 101 B                            12480 OCEAN TIDE COURT
Surrey, BC V4P 187                     ----------------------
                                       SURREY BC V4A 9P2
                                       ----------------------

  IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the
date first written above.

                                                 COMPANY

/S/ DEREK BODNARCHUK                             /S/ LARRY HRABI
-----------------------                          ------------------------
WITNESS

                                                 CONTRACTOR

/S/ DEREK BODNARCHUK                             /S/ D. J. SLAMKO
-----------------------                          ------------------------
WITNESS<PAGE>

                                                                EXHIBIT 10.26

                                  IBASIS, INC.

                        1999 EMPLOYEE STOCK PURCHASE PLAN

         1. DEFINITIONS. As used in this 1999 Employee Stock Purchase Plan of
iBasis, Inc., the following terms shall have the meanings respectively assigned
to them below:

         (a) BASE COMPENSATION means annual or annualized base compensation,
exclusive of overtime, bonuses, contributions to employee benefit plans, or
other fringe benefits.

         (b) BENEFICIARY means the person designated as the Participating
Employee's beneficiary on the Participating Employee's Membership Agreement or
other form provided by the personnel department of the Company for such purpose
or, if no such beneficiary is named, the person to whom the Option is
transferred by will or under the applicable laws of descent and distribution.

         (c) BOARD means the board of directors of the Company, except that, if
and so long as the board of directors of the Company has delegated pursuant to
Section 4 its authority with respect to the Plan to the Committee, then all
references in this Plan to the Board shall refer to the Committee acting in such
capacity.

         (d) CODE means the Internal Revenue Code of 1986, as amended.

         (e) COMMITTEE means the Compensation Committee of the Board.

         (f) COMPANY means iBasis, Inc., a Delaware corporation.

         (g) EFFECTIVE DATE means the effective date of the Registration
Statement (as defined below).

         (h) ELIGIBLE EMPLOYEE means a person who is eligible under the
provisions of Section 7 to receive an Option as of a particular Offering
Commencement Date.

         (i) EMPLOYER means, as to any particular Offering Period, the Company
and any Related Corporation which is designated by the Board as a corporation
whose Eligible Employees are to receive Options as of that Offering Period's
Offering Commencement Date.

         (j) MARKET VALUE means, as of the Offering Commencement Date of the
first Offering Period under this Plan, the initial public offering price at
which shares of Common Stock are offered to the public, as specified in the
Registration Statement, and

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                                      -2-

as of any other particular date, (i) if the Stock is listed on an exchange, the
closing price of the Stock on such date on such exchange, (ii) if the Stock is
quoted through the National Association of Securities Dealers, Inc. Automated
Quotation ("NASDAQ") National Market System or any successor thereto, the
closing price of the Stock on such system on such date and (iii) if the Stock is
quoted through Nasdaq (but not on the National Market System) or otherwise
publicly traded, the average of the closing bid and asked prices of the Stock as
reported by Nasdaq or such other medium on which such Stock is publicly traded
on such date.

         (k) MEMBERSHIP AGREEMENT means an agreement whereby a Participating
Employee authorizes an Employer to withhold payroll deductions from his or her
Base Compensation.

         (l) OFFERING COMMENCEMENT DATE means the first business day of an
Offering Period on which Options are granted to Eligible Employees.

         (m) OFFERING PERIOD means (i) in the case of the initial Offering
Period hereunder, the period running from the Effective Date to June 30, 2000
and (ii) in the case of each subsequent Offering Period, a semi-annual period,
running from either January 1 to the next following June 30 or July 1 to the
next following December 31; during which Options will be offered under the Plan
pursuant to a determination by the Board.

         (n) OFFERING TERMINATION DATE means the last business day of an
Offering Period, on which Options must, if ever, be exercised.

         (o) OPTION means an option to purchase shares of Stock granted under
the Plan.

         (p) OPTION SHARES means shares of Stock purchasable under an Option.

         (q) PARTICIPATING EMPLOYEE means an Eligible Employee to whom an Option
is granted.

         (r) PLAN means this 1999 Employee Stock Purchase Plan of the Company,
as amended from time to time.

         (s) REGISTRATION STATEMENT means the Company's Registration Statement
on Form S-1, File No. 333-85545, filed with the Securities and Exchange
Commission under the Securities Act of 1933, as amended.

         (t) RELATED CORPORATION means any corporation which is or during the
term of the Plan becomes a parent corporation of the Company, as defined in
Section 424(e) of the Code, or a subsidiary corporation of the Company, as
defined in Section 424(f) of the Code.

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                                      -3-

         (u) RETIRES means termination of employment with the Company and all
Related Corporations at or after attaining age 65.

         (v) STOCK means the common stock, par value $0.001 per share, of the
Company as such class of capital stock is described in the Registration
Statement.

         2. PURPOSE OF THE PLAN. The Plan is intended to encourage ownership of
Stock by employees of the Company and any Related Corporations and to provide an
additional incentive for the employees to promote the success of the business of
the Company and any Related Corporations. It is intended that the Plan shall be
an "employee stock purchase plan" within the meaning of Section 423 of the Code.

         3. TERM OF THE PLAN. The Plan shall become effective on the Effective
Date, subject to the approval by the stockholders of the Company on or prior to
the first anniversary of the Effective Date. No Option shall be granted under
the Plan after the date immediately preceding the tenth anniversary of the
Effective Date.

         4. ADMINISTRATION OF THE PLAN. The Plan shall be administered by the
Board. The Board shall determine semi-annually (in accordance with Section 8),
on or before either December 15 and June 15, whether to grant options under the
Plan with respect to the Offering Period which would otherwise begin as of
January 1 and July 1, respectively; PROVIDED, however, that, the Board's
approval of the Plan shall constitute the Board's affirmative determination to
grant options with respect to the first Offering Period. The Board shall
determine which (if any) Related Corporations shall be Employers with respect to
the Plan as of each Offering Commencement Date. Either such determination may in
the discretion of the Board apply to all subsequent Offering Periods until
modified or revoked by the Board. The Board shall have authority to interpret
the Plan, to prescribe, amend and rescind rules and regulations relating to the
Plan, to determine the terms of Options granted under the Plan, and to make all
other determinations necessary or advisable for the administration of the Plan.
All determinations of the Board under the Plan shall be final and binding as to
all persons having or claiming any interest in or arising out of the Plan. The
Board may delegate all or any portion of its authority with respect to the Plan
to the Committee, and thereafter, until such delegation is revoked by the Board,
all powers under the Plan delegated to the Committee shall be exercised by the
Committee.

         5. TERMINATION AND AMENDMENT OF PLAN. The Board may terminate or amend
the Plan at any time; PROVIDED, HOWEVER, that the Board may not, without
approval by the holders of a majority of the outstanding shares of Stock,
increase the maximum number of shares of Stock purchasable under the Plan (other
than in accordance with the terms of Section 6) or change the description of
employees or classes of employees eligible to receive Options. Without limiting
the generality of the foregoing but subject to the foregoing proviso, the Board
may amend the Plan from time to time to increase or decrease the length of any
future Offering Periods (E.G., to a nine month period) and to make all required
conforming changes to the Plan. No termination of or amendment to the Plan may
adversely affect the rights of a Participating Employee with respect to any

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                                      -4-

Option held by the Participating Employee as of the date of such termination or
amendment without his or her consent.

         6. SHARES OF STOCK SUBJECT TO THE PLAN. No more than an aggregate of
500,000 shares of Stock may be issued or delivered pursuant to the exercise of
Options granted under the Plan, subject to adjustments made in accordance with
Section 9.7. Shares to be delivered upon the exercise of Options may be either
shares of Stock which are authorized but unissued or shares of Stock held by the
Company in its treasury. If an Option expires or terminates for any reason
without having been exercised in full, the unpurchased shares subject to the
Option shall become available for other Options granted under the Plan. The
Company shall, at all times during which Options are outstanding, reserve and
keep available shares of Stock sufficient to satisfy such Options (or, if less,
the maximum number still available for issuance under the foregoing limit), and
shall pay all fees and expenses incurred by the Company in connection therewith.
In the event of any capital change in the outstanding Stock as contemplated by
Section 9.7, the number of shares of Stock reserved and kept available by the
Company shall be appropriately adjusted.

         7. PERSONS ELIGIBLE TO RECEIVE OPTIONS. Each employee of an Employer
shall be granted an Option on each Offering Commencement Date on which such
employee meets all of the following requirements:

         (a) The employee is customarily employed by an Employer for more than
twenty hours per week and for more than five months per calendar year and, in
the case of any Offering Period after the first Offering Period under the Plan,
has been employed by one or more of the Employers for at least one week prior to
the applicable Offering Commencement Date.

         (b) The employee will not, after grant of the Option, own Stock
possessing five percent or more of the total combined voting power or value of
all classes of stock of the Company or of any Related Corporation. For purposes
of this paragraph (b), the rules of Section 424(d) of the Code shall apply in
determining the Stock ownership of the employee, and Stock which the employee
may purchase under outstanding options shall be treated as Stock owned by the
employee.

         (c) Upon grant of the Option, the employee's rights to purchase Stock
under all employee stock purchase plans (as defined in Section 423(b) of the
Code) of the Company and its Related Corporations will not accrue at a rate
which exceeds $25,000 of fair market value of the Stock (determined as of the
grant date) for each calendar year in which such option is outstanding at any
time. The accrual of rights to purchase Stock shall be determined in accordance
with Section 423(b)(8) of the Code.

         8. OFFERING COMMENCEMENT DATES. Options shall be granted on the
Effective Date (as to the initial Offering Period), and on the first business
day of each semi-annual period, running from either January 1 to the next
following June 30 or July 1 to the next following December 31, which follows
June 30, 2000. Following the end of the Initial

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                                      -5-

Offering Period, all succeeding semi-annual periods described above shall be
deemed Offering Periods without need of Board action unless and until contrary
action shall have been taken by the Board prior to the beginning of what would
otherwise be an Offering Period.

         9.       TERMS AND CONDITIONS OF OPTIONS.

         9.1 GENERAL. All Options granted on a particular Offering Commencement
Date shall comply with the terms and conditions set forth in Sections 9.2
through 9.11. Subject to Sections 7(c) and 9.9, each Option granted on a
particular Offering Commencement Date shall entitle the Participating Employee
to purchase that number of shares equal to the result of $12,500 (or such lesser
amount as is selected by the Board, prior to the applicable Offering
Commencement Date, and applied uniformly during such Offering Period) divided by
the Market Value of one such share on the Offering Commencement Date and then
rounded down, if necessary, to the nearest whole number.

         9.2 PURCHASE PRICE. The purchase price of Option Shares shall be 85% of
the lesser of (a) the Market Value of the shares as of the Offering Commencement
Date or (b) the Market Value of the shares as of the Offering Termination Date.

         9.3      RESTRICTIONS ON TRANSFER.

         (a) Options may not be transferred otherwise than by will or under the
laws of descent and distribution. An Option may not be exercised by anyone other
than the Participating Employee during the lifetime of the Participating
Employee.

         (b) The Optionee shall agree in the Membership Agreement to notify the
Company of any transfer of Option Shares within two years of the Offering
Commencement Date for such Option Shares. The Company shall have the right to
place a legend on all stock certificates representing Option Shares instructing
the transfer agent to notify the Company of any transfer of such Option Shares.
The Company shall also have the right to place a legend on all stock
certificates representing Option Shares setting forth or referring to the
restriction on transferability of such Option Shares.

         9.4 EXPIRATION. Each Option shall expire at the close of business on
the Offering Termination Date or on such earlier date as may result from the
operation of Sections 9.5 or 9.6.

         9.5 TERMINATION OF EMPLOYMENT OF OPTIONEE. If a Participating Employee
ceases for any reason (other than death or Retirement) to be continuously
employed by an Employer, whether due to voluntary severance, involuntary
severance, transfer, or disaffiliation of a Related Corporation with the
Company, his or her Option shall immediately expire without becoming
exercisable, and the Participating Employee's accumulated payroll deductions
shall be returned to the Participating Employee. For purposes of this Section
9.5, a Participating Employee shall be deemed to be employed throughout any
leave of absence for military service, illness or other bona fide purpose

<PAGE>
                                      -6-

which does not exceed the longer of ninety days or the period during which the
Participating Employee's reemployment rights are guaranteed by statute
(including without limitation the Veterans Reemployment Rights Act or similar
statute relating to military service) or by contract. If the Participating
Employee does not return to active employment prior to the termination of such
period, his or her employment shall be deemed to have ended on the ninety-first
day of such leave of absence (or such longer period guaranteed by statute or by
contract as provided above).

         9.6 RETIREMENT OR DEATH OF OPTIONEE. If a Participating Employee
Retires or dies, the Participating Employee or, in the case of death, his or her
Beneficiary shall be entitled to withdraw the Participating Employee's
accumulated payroll deductions, or to purchase shares on the Offering
Termination Date to the extent that the Participating Employee would be so
entitled had he or she continued to be employed by an Employer. The number of
shares purchasable shall be limited by the amount of the Participating
Employee's accumulated payroll deductions as of the date of his or her
Retirement or death. Accumulated payroll deductions shall be applied by the
Company toward the purchase of shares only if the Participating Employee or, in
the case of death, his or her Beneficiary submits to the Employer not later than
the Offering Termination Date a written request that the deductions be so
applied. Accumulated payroll deductions not withdrawn or applied to the purchase
of shares shall be delivered by the Company to the Participating Employee or
Beneficiary within a reasonable time after the Offering Termination Date.

         9.7 CAPITAL CHANGES AFFECTING THE STOCK. In the event that, between the
Offering Commencement Date and the Offering Termination Date with respect to an
Option, a stock dividend is paid or becomes payable in respect of the Stock or
there occurs a split-up or contraction in the number of shares of Stock, the
number of shares for which the Option may thereafter be exercised and the price
to be paid for each such share shall be proportionately adjusted. In the event
that, after the Offering Commencement Date, there occurs a reclassification or
change of outstanding shares of Stock or a consolidation or merger of the
Company with or into another corporation or a sale or conveyance, substantially
as a whole, of the property of the Company, the Participating Employee shall be
entitled on the Offering Termination Date to receive shares of Stock or other
securities equivalent in kind and value to the shares of Stock he or she would
have held if he or she had exercised the Option in full immediately prior to
such reclassification, change, consolidation, merger, sale or conveyance and had
continued to hold such shares (together with all other shares and securities
thereafter issued in respect thereof) until the Offering Termination Date,
PROVIDED, THAT, in the event of a merger of the Company with or into another
corporation or the sale or conveyance, substantially as a whole, of the property
of the Company, the Board may, in its discretion, advance any Offering
Termination Date to the closing or effective date of such merger or sale. In the
event that there is to occur a recapitalization involving an increase in the par
value of the Stock which would result in a par value exceeding the exercise
price under an outstanding Option, the Company shall notify the Participating
Employee of such proposed recapitalization immediately upon its being
recommended by the Board to the Company's shareholders, after which the
Participating Employee shall have the right to

<PAGE>
                                      -7-

exercise his or her Option prior to such recapitalization; if the Participating
Employee fails to exercise the Option prior to recapitalization, the exercise
price under the Option shall be appropriately adjusted. In the event that, after
the Offering Commencement Date, there occurs a dissolution or liquidation of the
Company, except pursuant to a transaction to which Section 424(a) of the Code
applies, each Option shall terminate, but the Participating Employee shall have
the right to exercise his or her Option prior to such dissolution or
liquidation.

         9.8 PAYROLL DEDUCTIONS. A Participating Employee may purchase shares
under his or her Option during any particular Offering Period by completing and
returning to the Company's personnel department at least ten days prior to the
beginning of such Offering Period a Membership Agreement indicating a percentage
(which shall be a full integer between one and ten) of his or her Base
Compensation which is to be withheld each pay period. Unless the Board decides
otherwise prior to the commencement of an Offering Period, all Participating
Employees shall be permitted, no more often than once per Offering Period, to
change the percentage of Base Compensation withheld during an Offering Period by
submitting an amended Membership Agreement to the Company's personnel department
indicating a different percentage of Base Compensation to be withheld. Any such
amended Membership Agreement shall become effective at the time determined
pursuant to rules adopted by the Board from time to time. In addition, no more
than once per Offering Period, the Participating Employee may cancel his or her
Agreement and withdraw all, but not less than all, of his or her accumulated
payroll deductions by submitting a written request therefor to the Company's
personnel department no later than the close of business on the last business
day of the Offering Period. The percentage of Base Compensation withheld may
also be changed from one Offering Period to another.

         9.9 EXERCISE OF OPTIONS. On the Offering Termination Date the
Participating Employee may purchase the number of shares purchasable by his or
her accumulated payroll deductions, or, if less, the maximum number of shares
subject to the Option as provided in Section 9.1, provided that:

         (a) If the total number of shares which all Optionees elect to
purchase, together with any shares already purchased under the Plan, exceeds the
total number of shares which may be purchased under the Plan pursuant to Section
6, the number of shares which each Optionee is permitted to purchase shall be
decreased PRO RATA based on the Participating Employee's accumulated payroll
deductions in relation to all accumulated payroll deductions otherwise to be
applied to the purchase of shares as of that Offering Termination Date.

         (b) If the number of shares purchasable includes a fraction, such
number shall be adjusted to the next smaller whole number and the purchase price
shall be adjusted accordingly.

         Accumulated payroll deductions not withdrawn prior to the Offering
Termination Date shall be automatically applied by the Company toward the
purchase of Option

<PAGE>
                                      -8-

Shares or, to the extent in excess of the aggregate purchase price of the shares
then purchasable by the Participating Employee, refunded to the Participating
Employee, except that where such excess is less than the purchase price for a
single share of Stock on the Offering Termination Date, such excess shall not be
refunded but instead shall be carried over and applied to the purchase of shares
in the first following Offering Period (subject to the possibility of withdrawal
by the Participating Employee during such Offering Period in accordance with the
terms of the Plan).

         9.10 DELIVERY OF STOCK. Except as provided below, within a reasonable
time after the Offering Termination Date, the Company shall deliver or cause to
be delivered to the Participating Employee a certificate or certificates for the
number of shares purchased by the Participating Employee. A stock certificate
representing the number of Shares purchased will be issued in the participant's
name only, or if his or her Membership Agreement so specifies, in the name of
the employee and another person of legal age as joint tenants with rights of
survivorship. If any law or applicable regulation of the Securities and Exchange
Commission or other body having jurisdiction in the premises shall require that
the Company or the Participating Employee take any action in connection with the
shares being purchased under the Option, delivery of the certificate or
certificates for such shares shall be postponed until the necessary action shall
have been completed, which action shall be taken by the Company at its own
expense, without unreasonable delay. The Optionee shall have no rights as a
shareholder in respect of shares for which he or she has not received a
certificate.

         9.11 RETURN OF ACCUMULATED PAYROLL DEDUCTIONS. In the event that the
Participating Employee or the Beneficiary is entitled to the return of
accumulated payroll deductions, whether by reason of voluntary withdrawal,
termination of employment, Retirement, death, or in the event that accumulated
payroll deductions exceed the price of shares purchased, such amount shall be
returned by the Company to the Participating Employee or the Beneficiary, as the
case may be, not later than within a reasonable time following the Offering
Termination Date applicable to the Option Period in which such deductions were
taken. Accumulated payroll deductions held by the Company shall not bear
interest nor shall the Company be obligated to segregate the same from any of
its other assets.

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

<PAGE>

                                  IBASIS, INC.

                                 FIRST AMENDMENT
                                       TO
                        1999 EMPLOYEE STOCK PURCHASE PLAN

         Effective as of December 15, 1999, the 1999 Employee Stock Purchase
Plan of iBasis, Inc., a Delaware corporation, was amended as follows:

         (1) Section 1(j) was amended by deleting such section in its entirety
         and replacing it with the following:

                 "(j) Market Value means, as of any particular date, (i) if the
                      Stock is listed on an exchange, the closing price of the
                      Stock on such date on such exchange, (ii) if the Stock is
                      quoted through the National Association of Securities
                      Dealers, Inc. Automated Quotation ("Nasdaq") National
                      Market System or any successor thereto, the closing price
                      of the Stock on such system on such date and (iii) if the
                      Stock is quoted through Nasdaq (but not on the National
                      Market System) or otherwise publicly traded, the average
                      of the closing bid and asked prices of the Stock as
                      reported by Nasdaq or such other medium on which such
                      Stock is publicly traded on such date."

         (2) Section 1(m) was amended by deleting such section in its entirety
         and replacing it with the following:

                 "(m) Offering Period means (i) in the case of the initial
                      Offering Period hereunder, the period running from the
                      January 1, 2000 to June 30, 2000 and (ii) in the case of
                      each subsequent Offering Period, a semi-annual period,
                      running from either January 1 to the next following June
                      30 or July 1 to the next following December 31; during
                      which Options will be offered under the Plan pursuant to a
                      determination by the Board."

         (3)  Section 8 was amended by deleting such section in its entirety
         and replacing it with the following:

                  "8. Offering Commencement Dates. Options shall be granted on
                      the first business day of each semi-annual period, running
                      from either January 1 to the next following June 30 or
                      July 1 to the next following December 31, which follows
                      June 30, 2000. Following the end of the initial Offering
                      Period, all succeeding semi-annual periods described above
                      shall be deemed Offering Periods without need of Board
                      action unless and until contrary action shall have been
                      taken by the Board prior to the beginning of what would
                      otherwise be an Offering Period."
<PAGE>
                                       -2-

         (4) Section 9.8 was amended by deleting such section in its entirety
         and replacing it with the following:

                 "9.8 Payroll Deductions. A Participating Employee may purchase
                      shares under his or her Option during any particular
                      Offering Period by completing and returning to the
                      Company's personnel department prior to the commencement
                      of the initial Offering Period, or in connection with any
                      subsequent Offering Period at least ten days prior to the
                      beginning of such Offering Period, a Membership Agreement
                      indicating a percentage (which shall be a full integer
                      between one and ten) of his or her Base Compensation which
                      is to be withheld each pay period. Unless the Board
                      decides otherwise prior to the commencement of an Offering
                      Period, all Participating Employees shall be permitted, no
                      more often than once per Offering Period, to change the
                      percentage of Base Compensation withheld during an
                      Offering Period by submitting an amended Membership
                      Agreement to the Company's personnel department indicating
                      a different percentage of Base Compensation to be
                      withheld. Any such amended Membership Agreement shall
                      become effective at the time determined pursuant to rules
                      adopted by the Board from time to time. In addition, no
                      more than once per Offering Period, the Participating
                      Employee may cancel his or her Agreement and withdraw all,
                      but not less than all, of his or her accumulated payroll
                      deductions by submitting a written request therefor to the
                      Company's personnel department no later than the close of
                      business on the last business day of the Offering Period.
                      The percentage of Base Compensation withheld may also be
                      changed from one Offering Period to another."

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