Document:

Exhibit 4.5

 

FORM OF WARRANT

 

	
  Name
  of Holder

  	
   

  	
  Shares of Common Stock

  Subject to Warrant*

  	
   

  	
  Purchase Price*

  
	
  Warburg, Pincus Equity Partners, L.P.

  	
   

  	
  4,293,935

  	
   

  	
   

  	
  $

  	
  0.0934

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Warburg, Pincus Netherlands Equity Partners I, CV

  	
   

  	
  136,315

  	
   

  	
   

  	
  $

  	
  0.0934

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Warburg, Pincus Netherlands Equity Partners I, CV

  	
   

  	
  90,875

  	
   

  	
   

  	
  $

  	
  0.0934

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Warburg, Pincus Netherlands Equity Partners III, CV

  	
   

  	
  22,720

  	
   

  	
   

  	
  $

  	
  0.0934

  

 

*                 Share amounts and purchase price have
been adjusted to reflect a recapitalization of NeuStar in 2000.

 

 

WARRANT

 

THIS WARRANT AND THE SECURITIES ISSUABLE UPON
ITS EXERCISE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “ACT”), OR ANY STATE SECURITIES LAW, AND MAY NOT BE
TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION UNDER THE ACT OR IN A
TRANSACTION WHICH, IN THE OPINION OF COUNSEL REASONABLY SATISFACTORY TO NEUSTAR
CORPORATION, QUALIFIES AS AN EXEMPT TRANSACTION UNDER THE ACT AND THE RULES AND
REGULATIONS PROMULGATED THEREUNDER.

 

 

NEUSTAR CORPORATION

 

Common Stock Purchase Warrant

 

NEUSTAR CORPORATION, a Delaware corporation (the “Company”),
hereby certifies that, for value received,                                                           
(the “Holder”), or its assigns, is entitled, subject to the terms set forth below,
to purchase from the Company, at any time and from time to time beginning on December 7,
1999 and ending on December 7, 2009, in whole or in part, an aggregate of                 
fully paid and non-assessable shares of the Common Stock, par value $0.01 per
share, of the Company (the “Common Stock”) at a purchase price, subject to the
provisions of Paragraph 3 hereof, of $0.467 per share (the “Purchase Price”).
The Purchase Price and the number and character of such shares are subject to
adjustment as provided below, and the term “Common Stock” shall include, unless
the context otherwise requires, the stock or other securities or property at
the time deliverable upon the exercise of this Warrant. This Warrant is herein
called the “Warrant.” This Warrant is being issued in connection with the loan
of $                  
by the Holder to the Company, as evidenced by a Subordinated Promissory Note of
the Company, dated as of the date hereof.

 

1.                                       EXERCISE OF WARRANT. The purchase rights
evidenced by this Warrant shall be exercised by the holder surrendering this
Warrant, with the form of subscription at the end hereof duly executed by such
holder, to the Company at its office at 1120 Vermont Avenue, N.W., Washington,
D.C. 20005, accompanied by payment, of an amount (the “Exercise Payment”) equal
to the Purchase Price multiplied by the number of shares being purchased
pursuant to such exercise, payable as follows: (a) by payment to the Company in
cash, by certified or official bank check, or by wire transfer of the Exercise
Payment, (b) by surrender to the Company for cancellation of securities of the
Company having a Market Price (as hereinafter defined) on the date of exercise
equal to the Exercise Payment; or (c) by a combination of the methods described
in clauses (a) and (b) above. In lieu of exercising the Warrant, the holder may
elect to receive a payment equal to the difference between (i) the Market Price
multiplied by the number of shares as to which the payment is then being
elected and (ii) the exercise price with respect to such shares, payable by the
Company to the Holder only in shares of Common Stock valued at the Market Price
on the date of exercise. For purposes hereof, the term “Market Price” shall
mean the average closing price of a share of Common Stock for the 15
consecutive trading days preceding such day on the principal national
securities exchange on which the shares of

 

 

Common Stock or securities are listed or admitted to trading or, if not
listed or admitted to trading on any national securities exchange, the average
of the reported bid and asked prices during such 15 trading day period in the
over-the-counter market as furnished by the National Quotation Bureau, Inc.,
or, if such firm is not then engaged in the business of reporting such prices,
as furnished by any member of the National Association of Securities Dealers,
Inc. selected by the Company or, if the shares of Common Stock or securities
are not publicly traded, the Market Price for such day shall be the fair market
value thereof determined jointly by the Company and the holder of this Warrant;
provided, however, that if such parties are unable to reach agreement within a
reasonable period of time, the Market Price shall be determined in good faith
by the independent investment banking firm selected jointly by the Company and
the holder of this Warrant or, if that selection cannot be made within 15 days,
by an independent investment banking firm selected by the American Arbitration
Association in accordance with its rules.

 

1.1                                 Partial
Exercise.  This Warrant may be
exercised for less than the full number of shares of Common Stock, in which
case the number of shares receivable upon the exercise of this Warrant as a
whole, and the sum payable upon the exercise of this Warrant as a whole, shall
be proportionately reduced. Upon any such partial exercise, the Company at its
expense will forthwith issue to the holder hereof a new Warrant or Warrants of
like tenor calling for the number of shares of Common Stock as to which rights
have not been exercised, such Warrant or Warrants to be issued in the name of
the holder hereof or his nominee (upon payment by such holder of any applicable
transfer taxes).

 

2.                                       DELIVERY OF STOCK CERTIFICATES ON EXERCISE.
As soon as practicable after the exercise of this Warrant and payment of the
Purchase Price, and in any event within ten (10) days thereafter, the Company,
at its expense, will cause to be issued in the name of and delivered to the
holder hereof a certificate or certificates for the number of fully paid and
non-assessable shares or other securities or property to which such holder
shall be entitled upon such exercise, plus, in lieu of any fractional share to
which such holder would otherwise be entitled, cash in an amount determined in
accordance with Paragraph 3.9 hereof. The Company agrees that the shares so
purchased shall be deemed to be issued to the holder hereof as the record owner
of such shares as of the close of business on the date on which this warrant
shall have been surrendered and payment made for such shares as aforesaid.

 

3.                                       ANTI-DILUTION PROVISIONS AND OTHER ADJUSTMENTS.  In order to prevent dilution of the right
granted hereunder, the Purchase Price shall be subject to adjustment from time
to time in accordance with this Paragraph 3. Upon each adjustment of the
Purchase Price pursuant to this Paragraph 3, the registered holder of this
Warrant shall thereafter be entitled to acquire upon exercise, at the Purchase
Price resulting from such adjustment, the number of shares of the Company’s
Common Stock obtainable by multiplying the Purchase Price in effect immediately
prior to such adjustment by the number of shares of the Company’s Common Stock
acquirable immediately prior to such adjustment and dividing the product
thereof by the Purchase Price resulting from such adjustment.

 

3.1                                 Adjustment
for Issue or Sale of Common Stock at Less than Purchase Price.  Except as provided in Paragraph 3.2 or 3.5
below, if and whenever on or after the date of

 

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issuance hereof the Company shall issue or sell, or shall in accordance
with subparagraphs 3.1(1) to (9), inclusive, be deemed to have issued or sold,
any shares of its Common Stock for a consideration per share less than the
Purchase Price in effect immediately prior to the time of such issue or sale,
then forthwith upon such issue or sale (the “Triggering
Transaction”), the Purchase Price shall, subject to subparagraphs (1) to (9) of
this Paragraph 3.1, be reduced to the price (calculated to the nearest tenth of
a cent) determined by dividing:

 

(a)                                  an amount equal to
the sum of (x) the product derived by multiplying the Number of Common Shares
Deemed Outstanding immediately prior to such Triggering Transaction by the
Purchase Price then in effect, plus (y) the consideration, if any, received by
the Company upon consummation of such Triggering Transaction, by

 

(b)                                 an amount equal to the
sum of (x) the Number of Shares Deemed Outstanding immediately prior to such
Triggering Transaction plus (y) the number of shares of Common Stock issued (or
deemed to be issued in accordance with subparagraphs 3.1(1) to (9)) in
connection with the Triggering Transaction.

 

For purposes of this Paragraph 3, the term “Number
of Common Shares Deemed Outstanding” at any given time shall mean the sum of
(i) the number of shares of the Company’s Common Stock outstanding at such
time, (ii) the number of shares of Common Stock issuable assuming conversion at
such time of the Series B Convertible Voting Preferred Stock, par value $0.01
per share, of the Company (the “Series B Preferred Stock”), (iii) the number of
shares of the Company’s Common Stock deemed to be outstanding under
subparagraphs 3.1(1) to (9), inclusive, at such time and (iv) (without
duplication) the number of shares of Common Stock issuable with respect to any
securities of the types described in items (i) and (ii) of Paragraph 3.5
outstanding at such time.

 

For purposes of determining the adjusted Purchase Price under this
Paragraph 3.1, the following subsections (1) to (9), inclusive, shall be
applicable:

 

(1)                                  In case the Company
at any time shall in any manner grant (whether directly or by assumption in a
merger or otherwise) any rights to subscribe for or to purchase, or any options
for the purchase of, Common Stock or any stock or other securities convertible
into or exchangeable for Common Stock (such rights or options being herein
called “Options” and such convertible or exchangeable stock or securities being
herein called “Convertible Securities”), whether or not such Options or the
right to convert or exchange any such Convertible Securities are immediately
exercisable and the price per share for which the Common Stock is issuable upon
exercise, conversion or exchange (determined by dividing (x) the total amount,
if any, received or receivable by the Company as consideration for the granting
of such options, plus the minimum aggregate amount of additional consideration
payable to the Company upon the exercise of all such Options, plus, in the case
of such Options which relate to Convertible Securities, the minimum aggregate
amount of additional consideration, if any, payable upon the issue or sale of
such Convertible Securities

 

3

 

and upon the conversion or exchange thereof, by (y) the total maximum
number of shares of Common Stock issuable upon the exercise of such Options or
the conversion or exchange of such Convertible Securities) shall be less than
the Purchase Price in effect immediately prior to the time of the granting of
such Option, then the total maximum amount of Common Stock issuable upon the
exercise of such Options, or, in the case of options for Convertible
Securities, upon the conversion or exchange of such Convertible Securities,
shall (as of the date of granting of such Options) be deemed to be outstanding
and to have been issued and sold by the Company for such price per share. No
adjustment of the Purchase Price shall be made upon the actual issue of such
shares of Common Stock or such Convertible Securities upon the exercise of such
Options, except as otherwise provided in subparagraph (3) below.

 

(2)                                  In case the Company
at any time shall in any manner issue (whether directly or by assumption in a
merger or otherwise) or sell any Convertible Securities, whether or not the
rights to exchange or convert thereunder are immediately exercisable, and the
price per share for which Common Stock is issuable upon such conversion or
exchange (determined by dividing (x) the total amount received or
receivable by the Company as consideration for the issue or sale of such
Convertible Securities, plus the minimum aggregate amount of additional
consideration, if any, payable to the Company upon the conversion or exchange
thereof, by (y) the total maximum number of shares of Common Stock
issuable upon the conversion or exchange of all such Convertible Securities)
shall be less than the Purchase Price in effect immediately prior to the time
of such issue or sale, then the total maximum number of shares of Common Stock
issuable upon conversion or exchange of all such Convertible Securities shall
(as of the date of the issue or sale of such Convertible Securities) be deemed
to be outstanding and to have been issued and sold by the Company for such
price per share. No adjustment of the Purchase Price shall be made upon the
actual issue of such Common Stock upon exercise of the rights to exchange or
convert under such Convertible Securities, except as otherwise provided in
subparagraph (3) below.

 

(3)                                  If the purchase price
provided for in any Options referred to in subparagraph (1), the additional
consideration, if any, payable upon the conversion or exchange of any
Convertible Securities referred to in subparagraphs (1) or (2), or the rate at
which any Convertible Securities referred to in subparagraph (1) or (2) are
convertible into or exchangeable for Common Stock shall change at any time
(other than under or by reason of provisions designed to protect against
dilution of the type set forth in Paragraph 3.1 or 3.3), the Purchase Price in
effect at the time of such change shall forthwith be readjusted to the Purchase
Price which would have been in effect at such time had such Options or
Convertible Securities still outstanding provided for such changed purchase price,
additional consideration or conversion rate, as the case may be, at the time
initially granted, issued or sold. If the purchase price provided for in any
Option referred to in subparagraph (1) or the rate at which any Convertible
Securities

 

4

 

referred to in subparagraphs (1) or (2) are convertible into or
exchangeable for Common Stock, shall be reduced at any time under or by reason
of provisions with respect thereto designed to protect against dilution, then
in case of the delivery of Common Stock upon the exercise of any such Option or
upon conversion or exchange of any such Convertible Security, the Purchase
Price then in effect hereunder shall forthwith be adjusted to such respective
amount as would have been obtained had such Option or Convertible Security
never been issued as to such Common Stock and had adjustments been made upon
the issuance of the shares of Common Stock delivered as aforesaid, but only if
as a result of such adjustment the Purchase Price then in effect hereunder is
hereby reduced.

 

(4)                                  On the expiration of
any Option or the termination of any right to convert or exchange any
Convertible Securities, the Purchase Price then in effect hereunder shall
forthwith be increased to the Purchase Price which would have been in effect at
the time of such expiration or termination had such Option or Convertible
Securities, to the extent outstanding immediately prior to such expiration or
termination, never been issued.

 

(5)                                  In case any Options
shall be issued in connection with the issue or sale of other securities of the
Company, together comprising one integral transaction in which no specific
consideration is allocated to such Options by the parties thereto, such Options
shall be deemed to have been issued without consideration.

 

(6)                                  In case any shares of
Common Stock, Options or Convertible Securities shall be issued or sold or
deemed to have been issued or sold for cash, the consideration received
therefor shall be deemed to be the amount received by the Company therefor. In
case any shares of Common Stock, Options or Convertible Securities shall be
issued or sold for a consideration other than cash, the amount of the
consideration other than cash received by the Company shall be the fair value
of such consideration as determined in good faith by the Board of Directors of
the Company. In case any shares of Common Stock, Options or Convertible
Securities shall be issued in connection with any merger in which the Company
is the surviving corporation, the amount of consideration therefor shall be
deemed to be the fair value of such portion of the net assets and business of
the non-surviving corporation as shall be attributed by the Board of Directors
of the Company in good faith to such Common Stock, Options or Convertible
Securities, as the case may be.

 

(7)                                  The number of shares
of Common Stock outstanding at any given time shall not include shares owned or
held by or for the account of the Company, and the disposition of any shares so
owned or held shall be considered an issue or sale of Common Stock for the
purpose of this Paragraph 3.1.

 

(8)                                  In case the Company
shall declare a dividend or make any other distribution upon the stock of the
Company payable in Options or Convertible

 

5

 

Securities, then in such case any Options or Convertible Securities, as
the case may be, issuable in payment of such dividend or distribution shall be
deemed to have been issued or sold without consideration.

 

(9)                                  For purposes of this
Paragraph 3.1, in case the Company shall take a record of the holders of its
Common Stock for the purpose of entitling them (x) to receive a dividend or
other distribution payable in Common Stock, Options or in Convertible
Securities, or (y) to subscribe for or purchase Common Stock, Options or
Convertible Securities, then such record date shall be deemed to be the date of
the issue or sale of the shares of Common Stock deemed to have been issued or
sold upon the declaration of such dividend or the making of such other
distribution or the date of the granting of such right or subscription or
purchase, as the case may be.

 

3.2                                 Dividends
Not Paid Out of Earninqs or Earned Surplus. 
In the event the Company shall declare a dividend upon the Common Stock
(other than a dividend payable in Common Stock) payable otherwise than out of
earnings or earned surplus, determined in accordance with generally accepted
accounting principles, including the making of appropriate deductions for
minority interests, if any, in subsidiaries (herein referred to as “Liquidating
Dividends”), then, as soon as possible after the exercise of this Warrant, the
Company shall pay to the person exercising such Warrant an amount equal to the
aggregate value at the time of such exercise of all Liquidating Dividends
(including but not limited to the Common Stock which would have been issued at
the time of such earlier exercise and all other securities which would have
been issued with respect to such Common Stock by reason of stock splits, stock
dividends, mergers or reorganizations, or for any other reason). For the
purposes of this Paragraph 3.2, a dividend other than in cash shall be
considered payable out of earnings or earned surplus only to the extent that
such earnings or earned surplus are charged an amount equal to the fair value
of such dividend as determined in good faith by the Board of Directors of the
Company.

 

3.3                                 Subdivisions
and Combinations. In case the Corporation shall at any time (i) subdivide
the outstanding Common Stock or (ii) issue a stock dividend on its outstanding
Common Stock, the Purchase Price in effect immediately prior to such
subdivision or dividend shall be proportionately reduced by the same ratio as
the subdivision or dividend. In case the Corporation shall at any time combine
its outstanding Common Stock, the Purchase Price in effect immediately prior to
such combination shall be proportionately increased by the same ratio as the
combination.

 

3.4                                 Reorqanization,
Reclassification, Consolidation, Merqer or Sale of Assets. If any capital
reorganization or reclassification of the capital stock of the Company, or
consolidation or merger of the Company with another corporation, or the sale of
all or substantially all of its assets to another corporation shall be effected
in such a way that holders of Common Stock shall be entitled to receive stock,
securities, cash or other property with respect to or in exchange for Common
Stock, then, as a condition of such reorganization, reclassification, consolidation,
merger or sale, lawful and adequate provision shall be made whereby the holder
of this Warrant shall have the right to acquire and receive upon exercise of
this Warrant such shares of stock, securities, cash or other property issuable
or payable (as part

 

6

 

of the reorganization, reclassification, consolidation, merger or sale)
with respect to or in exchange for such number of outstanding shares of the
Company’s Common Stock as would have been received upon
exercise of this Warrant at the Purchase Price then in effect. The Company will
not effect any such consolidation, merger or sale, unless prior to the
consummation thereof the successor corporation (if other than the Company)
resulting from such consolidation or merger or the corporation purchasing such
assets shall assume by written instrument mailed or delivered to the holder of
this Warrant at the last address of such holder appearing on the books of the
Company, the obligation to deliver to such holder such shares of stock,
securities or assets as, in accordance with the foregoing provisions, such
holder may be entitled to purchase. If a purchase, tender or exchange offer is
made to and accepted by the holders of more than 50% of the outstanding shares
of Common Stock of the Company, the Company shall not effect any consolidation,
merger or sale with the person having made such offer or with any Affiliate of
such person, unless prior to the consummation of such consolidation, merger or
sale the holder of this Warrant shall have been given a reasonable opportunity
to then elect to receive upon the exercise of this Warrant either the stock,
securities or assets then issuable with respect to the Common Stock of the
Company or the stock, securities or assets, or the equivalent, issued to
previous holders of the Common Stock in accordance with such offer. For
purposes hereof the term “Affiliate” with respect to any given person shall
mean any person controlling, controlled by or under common control with the
given person.

 

3.5                                 No
Adjustment for Exercise of Certain Options, Warrants, Etc. The provisions
of this Section 3 shall not apply to any Common Stock issued, issuable or
deemed outstanding under subparagraphs 3.1(1) to (9) inclusive: (i) to any
person pursuant to any stock option, stock purchase or similar plan or
arrangement for the benefit of employees, consultants or directors of the
Company or its subsidiaries in effect on the date of issuance hereof, (ii)
pursuant to options, warrants and conversion rights in existence on the date of
issuance hereof or (iii) on conversion of the Series B Preferred Stock.

 

3.6                                 Notices
of Record Date, Etc. In the event that:

 

(1)                                  the Company shall
declare any cash dividend upon its Common Stock, or

 

(2)                                  the Company shall
declare any dividend upon its Common Stock payable in stock or make any special
dividend or other distribution to the holders of its Common Stock, or

 

(3)                                  the Company shall
offer for subscription pro rata to the holders of its Common Stock any
additional shares of stock of any class or other rights, or

 

(4)                                  there shall be any
capital reorganization or reclassification of the capital stock of the Company,
including any subdivision or combination of its outstanding shares of Common
Stock, or consolidation or merger of the Company with, or sale of all or
substantially all of its assets to, another corporation, or

 

7

 

(5)                                  there shall be a
voluntary or involuntary dissolution, liquidation or winding up of the Company;

 

then, in connection with such event, the Company shall give to the
holder of this Warrant:

 

(ii)                                  at least twenty (20)
days’ prior written notice of the date on which the books of the Company shall
close or a record shall be taken for such dividend, distribution or
subscription rights or for determining rights to vote in respect of any such
reorganization, reclassification, consolidation, merger, sale, dissolution,
liquidation or winding up; and

 

(iii)                               in the case of any such
reorganization, reclassification, consolidation, merger, sale, dissolution,
liquidation or winding up, at least twenty (20) days’ prior written notice of
the date when the same shall take place. Such notice in accordance with the
foregoing clause (i) shall also specify, in the case of any such dividend,
distribution or subscription rights, the date on which the holders of Common
Stock shall be entitled thereto, and such notice in accordance with the
foregoing clause (ii) shall also specify the date on which the holders of
Common Stock shall be entitled to exchange their Common Stock for securities or
other property deliverable upon such reorganization, reclassification,
consolidation, merger, sale, dissolution, liquidation or winding up, as the
case may be. Each such written notice shall be given by first class mail,
postage prepaid, addressed to the holder of this Warrant at the address of such
holder as shown on the books of the Company.

 

3.7                                 Grant,
Issue or Sale of Options, Convertible Securities, or Rights. If at any time
or from time to time on or after the date of issuance hereof, the Company shall
grant, issue or sell any Options, Convertible Securities or rights to purchase
property (the “Purchase Rights”) pro rata to the record holders of any class of
Common Stock of the Company and such grants, issuances or sales do not result
in an adjustment of the Purchase Price under Paragraph 3.1 hereof, then the
holder of this Warrant shall be entitled to acquire (within thirty (30) days
after the later to occur of the initial exercise date of such Purchase Rights
or receipt by such holder of the notice concerning Purchase Rights to which
such holder shall be entitled under Paragraph 3.6) and upon the terms
applicable to such Purchase Rights either:

 

(i)                                     the aggregate
Purchase Rights which such holder could have acquired if it had held the number
of shares of Common Stock acquirable upon exercise of this Warrant immediately
before the grant, issuance or sale of such Purchase Rights; provided that if
any Purchase Rights were distributed to holders of Common Stock without the
payment of additional consideration by such holders, corresponding Purchase
Rights shall be distributed to the exercising holder of this Warrant as soon as
possible after such exercise and it shall not be necessary for the exercising
holder of this Warrant specifically to request delivery of such rights; or

 

8

 

(ii)                                  in the event that any
such Purchase Rights shall have expired or shall expire prior to the end of
said thirty (30) day period, the number of shares of Common Stock or the amount
of property which such holder could have acquired upon such exercise at the
time or times at which the Company granted, issued or sold such expired
Purchase Rights.

 

3.8                                 Adjustment
by Board of Directors. If any event occurs as to which, in the opinion of
the Board of Directors of the Company, the provisions of this Section 3
are not strictly applicable or if strictly applicable would not fairly protect
the rights of the holder of this Warrant in accordance with the essential
intent and principles of such provisions, then the Board of Directors shall
make an adjustment in the application of such provisions, in accordance with
such essential intent and principles, so as to protect such rights as
aforesaid, but in no event shall any adjustment have the effect of increasing
the Purchase Price as otherwise determined pursuant to any of the provisions of
this Section 3 except in the case of a combination of shares of a type
contemplated in Paragraph 3.3 and then in no event to an amount larger than the
Purchase Price as adjusted pursuant to Paragraph 3.3.

 

3.9                                 Fractional
Shares. The Company shall not issue fractions of shares of Common Stock
upon exercise of this Warrant or scrip in lieu thereof. If any fraction of a
share of Common Stock would, except for the provisions of this Paragraph 3.9,
be issuable upon exercise of this Warrant, the Company shall in lieu thereof
pay to the person entitled thereto an amount in cash equal to the current value
of such fraction, calculated to the nearest one-hundredth (1/100) of a share,
to be computed (i) if the Common Stock is listed on any national securities
exchange on the basis of the last sales price of the Common Stock on such
exchange (or the quoted closing bid price if there shall have been no sales) on
the date of conversion, or (ii) if the Common Stock shall not be listed, on the
basis of the mean between the closing bid and asked prices for the Common Stock
on the date of conversion as reported by NASDAQ, or its successor, and if there
are not such closing bid and asked prices, on the basis of the fair market
value per share as determined by the Board of Directors of the Company.

 

3.10                           Officers’
Statement as to Adjustments. Whenever the Purchase Price shall be adjusted
as provided in Section 3 hereof, the Company shall forthwith file at each
office designated for the exercise of this Warrant, a statement, signed by the
Chairman of the Board, the President, any Vice President or Treasurer of the
Company, showing in reasonable detail the facts requiring such adjustment and
the Purchase Price that will be effective after such adjustment. The Company
shall also cause a notice setting forth any such adjustments to be sent by
mail, first class, postage prepaid, to the record holder of this Warrant at his
or its address appearing on the stock register. If such notice relates to an
adjustment resulting from an event referred to in Paragraph 3.6, such notice
shall be included as part of the notice required to be mailed and published
under the provisions of Paragraph 3.6 hereof.

 

4.                                       NO DILUTION OR IMPAIRMENT. The Company will
not, by amendment of its charter or through reorganization, consolidation,
merger, dissolution, sale of assets or any other voluntary action, avoid or
seek to avoid the observance or performance of any of the terms of this
Warrant, but will at all times in good faith assist in the carrying out of all
such terms and in the taking of all such action as may be necessary or
appropriate in order to

 

9

 

protect the rights of the holder hereof against dilution or other
impairment. Without limiting the generality of the foregoing, the Company will
not increase the par value of any shares of stock receivable upon the exercise
of this Warrant above the amount payable therefor upon such exercise, and at
all times will take all such action as may be necessary or appropriate in order
that the Company may validly and legally issue fully paid and non-assessable
stock upon the exercise of this Warrant.

 

5.                                       RESERVATION OF STOCK, ETC., ISSUABLE ON EXERCISE OF
WARRANTS. The Company shall at all times reserve and keep available
out of its authorized but unissued stock, solely for the issuance and delivery
upon the exercise of this Warrant and other similar Warrants, such number of
its duly authorized shares of Common Stock as from time to time shall be
issuable upon the exercise of this Warrant and all other similar Warrants at
the time outstanding.

 

6.                                       REPLACEMENT OF WARRANT.  Upon receipt of evidence reasonably
satisfactory to the Company of the loss, theft, destruction or mutilation of
this Warrant and (in the case of loss, theft or destruction) upon delivery of
an indemnity agreement (with surety if reasonably required) in an amount
reasonably satisfactory to it, or (in the case of mutilation) upon surrender
and cancellation thereof, the Company will issue, in lieu thereof, a new
Warrant of like tenor.

 

7.                                       REMEDIES. The Company stipulates that the
remedies at law of the holder of this Warrant in the event of any default by
the Company in the performance of or compliance with any of the terms of this
Warrant are not and will not be adequate, and that the same may be specifically
enforced.

 

8.                                       NEGOTIABILITY, ETC. This Warrant is issued
upon the following terms, to all of which each taker or owner hereof consents
and agrees:

 

(a)                                  Subject to the legend
appearing on the first page hereof, title to this Warrant may be transferred by
endorsement (by the holder hereof executing the form of assignment at the end
hereof including guaranty of signature) and delivery in the same manner as in
the case of a negotiable instrument transferable by endorsement and delivery.

 

(b)                                 Any person in
possession of this Warrant properly endorsed is authorized to represent himself
as absolute owner hereof and is granted power to transfer absolute title hereto
by endorsement and delivery hereof to a bona fide purchaser hereof for value;
each prior taker or owner waives and renounces all of his equities or rights in
this Warrant in favor of every such bona fide purchaser, and every such bona
fide purchaser shall acquire title hereto and to all rights represented hereby.

 

(c)                                  Until this Warrant is
transferred on the books of the Company, the Company may treat the registered
holder of this Warrant as the absolute owner hereof for all purposes without
being affected by any notice to the contrary.

 

10

 

(d)                                 Prior to the exercise
of this Warrant, the holder hereof shall not be entitled to any rights of a
shareholder of the Company with respect to shares for which this Warrant shall
be exercisable, including, without limitation, the right to vote, to receive
dividends or other distributions or to exercise any preemptive rights, and
shall not be entitled to receive any notice of any proceedings of the Company,
except as provided herein.

 

(e)                                  The Company shall not
be required to pay any Federal or state transfer tax or charge that may be
payable in respect of any transfer involved in the transfer or delivery of this
Warrant or the issuance or conversion or delivery of certificates for Common
Stock in a name other than that of the registered holder of this Warrant or to
issue or deliver any certificates for Common Stock upon the exercise of this
Warrant until any and all such taxes and charges shall have been paid by the
holder of this Warrant or until it has been established to the Company’s
satisfaction that no such tax or charge is due.

 

9.                                       SUBDIVISION OF RIGHTS. This Warrant (as
well as any new warrants issued pursuant to the provisions of this paragraph)
is exchangeable, upon the surrender hereof by the holder hereof, at the
principal office of the Company for any number of new warrants of like tenor
and date representing in the aggregate the right to subscribe for and purchase
the number of shares of Common Stock of the Company which may be subscribed for
and purchased hereunder.

 

10.                                 MAILING OF NOTICES, ETC. All notices and
other communications from the Company to the holder of this Warrant shall be
mailed by first-class certified mail, postage prepaid, to the address furnished
to the Company in writing by the last holder of this Warrant who shall have
furnished an address to the Company in writing.

 

11.                                 HEADINGS, ETC. The headings in this Warrant
are for purposes of reference only, and shall not limit or otherwise affect the
meaning hereof.

 

12.                                 CHANGE, WAIVER, ETC. Neither this Warrant
nor any term hereof may be changed, waived, discharged or terminated orally but
only by an instrument in writing signed by the party against which enforcement
of the change, waiver, discharge or termination is sought.

 

13.                                 GOVERNING LAW. THIS WARRANT SHALL BE CONSTRUED AND
ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE.

 

 

	
   

  	
  NEUSTAR CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jeffrey Ganek

  	
   

  
	
   

  	
  Name:  Jeffrey Ganek

  
	
   

  	
  Title:  Chief Executive Officer

  

 

11

 

	
  Dated: December 7, 1999

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Robert Poulin

  	
   

  	
   

  	
   

  
	
  Name:  Robert Poulin

  
	
  Title:  Senior Vice President,
  Marketing

  
				

 

12

 

[To be signed only upon exercise of Warrant]

 

To NeuStar Corporation:

 

The undersigned, the holder of the within Warrant, hereby irrevocably
elects to exercise the purchase right represented by such Warrant for, and to
purchase thereunder,                shares
of Common Stock of NeuStar Corporation and herewith makes payment of $                    
therefor, and requests that the certificates for such shares be issued in the
name of, and be delivered to              ,
whose address is                                               .

 

 

	
  Dated:

  
	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  
	
   

  	
   

  
	
   

  	
  Address

  

 

 

[To be signed only upon transfer of Warrant]

 

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto                                                         
the right represented by the within Warrant to purchase the             
shares of the Common Stock of NeuStar Corporation to which the within Warrant
relates, and appoints                                               
attorney to transfer said right on the books of NeuStar Corporation with full
power of substitution in the premises.

 

	
  Dated:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

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

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address

  
	
   

  	
   

  
	
  In the presence ofQuickLinks
 -- Click here to rapidly navigate through this document

 
 

JOINT VENTURE FORMATION AGREEMENT    
    

        This Joint Venture Formation Agreement (the "Agreement") is entered into as of the 27th day of April, 2001 (the "Commencement Date") by and between
NeuStar, Inc., a Delaware corporation ("NeuStar") and Melbourne IT Limited, an Australian corporation ("Melbourne"). 

        WHEREAS,
NeuStar and Melbourne each subscribed for membership interests in a limited liability company organized under the laws of the state of Delaware initially named JV Team LLC,
subsequently named NeuLevel LLC, for the purposes of lodging bids with ICANN in the October 2, 2000 round for new TLDs and thereafter converted into a Delaware corporation named NeuLevel Inc;
and 

        WHEREAS,
ICANN has requested that the parties enter further negotiations in relation to providing registry services for a new '.biz' TLD; and 

        WHEREAS,
the parties also wish to pursue other Internet DNS-based registry business through a joint venture vehicle; and 

        WHEREAS,
the parties wish to enter into a definitive agreement implementing the joint venture; 

        NOW
THEREFORE, in consideration of the premises and covenants hereinafter contained, NeuStar and Melbourne agree as follows: 

I.     Definitions  

        In addition to terms otherwise defined herein, for the purposes of this Agreement, unless the context otherwise specifies or requires, the following terms have
the meanings set forth below: 

        "Affiliate"
means with respect to any Person, any other Person who directly or indirectly controls, is controlled by or is under common control with such Person unless such common
control results solely
from the fact that a third party engaged primarily in the business of investing in securities has invested in both Persons, or has the right to designate a board member of either Person, or otherwise
controls, both Persons; if the Person in question is a corporation, any executive officer or director of the Person in question or of any corporation directly or indirectly controlling the Person in
question. For the purposes of this definition, the term "control" when used with respect to any Person, means the possession, directly or indirectly, of the power to direct the management and policies
of such Person, whether through the ownership of voting securities, by contract or otherwise. A portfolio company of Warburg Pincus, DB Capital Partners, Inc. or ABS Capital Partners shall not
be an deemed an Affiliate of NeuStar by reason of Warburg, Pincus', DB Capital Partners, Inc.'s or ABS Capital Partners' ownership of NeuStar or such portfolio company or the designation by
Warburg Pincus, DB Capital Partners, Inc. or ABS Capital Partners of a member of the board of directors of either NeuStar or such portfolio company. 

        "Bankruptcy"
shall have the meaning assigned to it in Section 11.01 of the Stockholders Agreement. 

        "Bid"
has the meaning assigned to it in Section 2.2. 

        "Change
in Control" means a Change in Control as defined in the Stockholders' Agreement. 

        "Closing"
has the meaning assigned to it in Section 3.1. 

        "Closing
Date" has the meaning assigned to it in Section 3.1. 

        "Company"
has the meaning assigned to it in Section 2.3. 

        "Common
Stock" means the common stock, par value $0.01 per share, of the Company. 

        "Equity
Ownership Percentage" means Equity Ownership Percentage as defined in the Stockholders' Agreement. 

        "Equity
Securities" means any shares of capital stock or other equity securities of a Person. 

 

        "ICANN"
means the Internet Corporation for Assigned Names and Numbers. 

        "Initial
Budget" means the final annual capital expenditure and operating budget for the first two years of the Company's operation attached hereto as Schedule 2.5. 

        "Initial
Capital Contribution" means an Initial Capital Contribution as defined in the Stockholders' Agreement. 

        "Initial
Public Offering" has the meaning assigned to it in Section 7.2. 

        "LLC"
has the meaning assigned to it in Section 2.1. 

        "Material
Adverse Effect" means a material adverse effect on the business, financial condition or operating results of a Person and its subsidiaries taken as a whole. 

        "Melbourne
Operating Agreement" means an agreement between Melbourne and the Company pursuant to which Melbourne shall provide personnel, facilities and management support to the
Company. 

        "NeuStar
Operating Agreement" means an agreement between NeuStar and the Company pursuant to which NeuStar shall provide personnel, facilities and management support to the Company. 

        "Person"
means an individual, a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture, an unincorporated association, a
governmental entity or any department, agency or political subdivision thereof or of any other entity. 

        "Providing
Party" has the meaning assigned to it in Section 6.4. 

        "Receiving
Party" has the meaning assigned to it in Section 6.4. 

        "Stockholders'
Agreement" has the meaning assigned to it in Section 3.2. 

        "Subsidiary"
shall mean, as to any Person, a corporation or other entity more than fifty percent (50%) of whose voting power, voting equity securities or equity interest is owned,
directly or indirectly, by such Person. 

        "$"
means United States of America currency. 

II.    Formation of Company; ICANN Bid  

        2.1   Pursuant
to a Letter of Intent, NeuStar and Melbourne formed and subscribed for membership interests in a limited liability company (the "LLC") for the purposes of
submitting bids in the ICANN October 2, 2000 round. The subscription agreements are attached hereto as Exhibit 2.1(b) and the Certificate
of Formation, as amended is attached as Exhibit 2.1(c) hereto and has been filed with the Office of the Secretary of State of the state of
Delaware. 

        2.2   NeuStar
and Melbourne have jointly prepared, and the LLC has executed and submitted to ICANN an agreed accreditation bid (each, a "Bid") for one or more restricted
Internet top level domains ("TLD") for which ICANN accepted tenders on October 2, 2000. ICANN has awarded the '.biz' domain to the LLC subject to final negotiation and entering into a final
agreement with ICANN. 

        2.3   Before
the Commencement Date, the parties (a) approved the conversion of the LLC to a corporation organized under the laws of the state of Delaware (such
corporation, the "Company"), (b) filed the Certificate of Incorporation of the Company attached as Exhibit 2.3(a) hereto with the Office
of the Secretary of State of the state of Delaware, (c) filed the Certificate of Conversion with the Office of the Secretary of State of the state of Delaware and (d) adopted
organizational resolutions and by-laws of the Company attached as Exhibit 2.3(b). References in this Agreement to the Company shall
include the LLC as its predecessor and references to the LLC shall include the Company as its successor. 

2

 

        2.4   The
accreditation bid for ".biz" shall be assigned to the Company and the Company shall assume responsibility for performing the obligations of the LLC in relation to
such accreditation by operation of law as a result of the conversion of the LLC to a corporation as provided in Section 2.3. 

        2.5   The
parties agree that Schedule 2.5 sets forth the Initial Budget, from which the timing and amount of Initial Capital Contributions listed in
Schedule 3.01 of the Stockholders Agreement are calculated. 

III.  Stockholders' Agreement; Reimbursement of Expenses  

        3.1   Concurrently
with execution and delivery of this Agreement by the parties hereto; (a) NeuStar shall subscribe for an additional three hundred and fifty
(350) shares of Common Stock for a total purchase price of $35000 pursuant to the subscription agreement attached as Exhibit 3.1(a) so
that the respective Equity Ownership Percentages of NeuStar and Melbourne shall be ninety percent (90%) and ten percent (10%) and (b) the parties hereto shall execute and deliver the
Stockholders' Agreement attached as Exhibit 3.1(b).

        3.2   The
parties agree that Schedule 3.2 sets forth the amount of expenses incurred by each party as of February 28, 2001 on behalf of the Company and
development of the registry, including all amounts invoiced by and due to third parties on or before February 28, 2001 whenever incurred and all internal expenses incurred since
January 1, 2001. On April 30, 2001, the parties hereto shall make sufficient capital contributions to the Company, in accordance with their respective Equity Ownership Percentages, to
allow the Company to reimburse each party for expenses incurred up to and including February 28, 2001 on behalf of the Company and development of the registry, including all third party
expenses whenever incurred and all internal expenses incurred since January 1, 2001. On April 30, 2001, the Company shall reimburse each party for expenses incurred up to and including
February 28, 2001 on behalf of the Company and development of the registry, including all third party expenses invoiced by February 28, 2001 whenever incurred and all internal expenses
incurred since January 1, 2001. 

        3.3   At
any time on or before April 30, 2001, Melbourne may, but is not obligated to, subscribe to purchase from the Company for an additional three hundred and eighty
(380) shares of Common Stock for a total purchase price of $38000 and, if Melbourne elects to make such subscription, NeuStar shall subscribe for an additional one hundred and seventy
(170) shares of Common Stock for a total purchase price of $17000 so that the respective Equity Ownership Percentages of NeuStar and Melbourne immediately following such sale shall be
fifty-seven and one-half percent (571/2%) and forty-two and one-half percent (421/2%). Melbourne and NeuStar will cause the Company to
enter into any arrangement necessary to execute the sale of such shares to Melbourne and NeuStar under this Section 3.3. If Melbourne has exercised any portion of the Option under
Section 1.01 of the Stockholders' Agreement, the shares subscribed to shall be adjusted such that after such sale the respective Equity Ownership Percentages of NeuStar and Melbourne
immediately following such sale shall be fifty-seven and one-half percent (571/2%) and forty-two and one-half percent (421/2%). The
subscription right under this Section 3.3 may only be exercised in full. 

        3.4   On
April 30, 2001, each of the parties hereto shall make their respective Initial Capital Contributions as required by Schedule 3.01 of the Stockholders
Agreement by wire transfer of immediately available funds. On April 30, 2001, the Company shall reimburse each party for expenses incurred since February 28, 2001 on behalf of the
Company and development of the registry, including third party expenses invoiced subsequent to February 28 and all internal expenses incurred since February 28, 2001. Subsequent to
April 30, 2001, the Company shall reimburse each party for any third party and internal expenses incurred prior to April 30, 2001 on behalf of the Company reimbursable under this
Agreement and not previously reimbursed. Other expenses incurred by a party on behalf of 

3

 

the
Company shall be reimbursed in accordance with the Melbourne Operating Agreement or NeuStar Operating Agreement, as applicable, or as otherwise agreed. 

        3.5   If
on or before April 30, 2001 Melbourne has not elected to subscribe for additional Common Stock from the Company under Section 3.3, Melbourne may, by
written notice to NeuStar on or before April 30, 2001, require NeuStar to purchase all of Melbourne's Common Stock at cost plus the reimbursement of its expenses to the extent reimbursable and
not already reimbursed under Section 3.2 and 3.4. The purchase price will be paid by NeuStar to Melbourne on the later of June 30, 2001 or 30 days from the date the Company signs
an accreditation agreement with ICANN, or such earlier date elected by NeuStar. For the period of one year from the date of closing of such sale under this Section 3.5, Melbourne agrees: 

        (i)    to
provide such commercially reasonable assistance to the Company as is required for it to maintain its accreditation from ICANN, if any; and 

        (ii)   not
to undertake any correspondence or take any position with ICANN which is adverse to the Company (being that business set out in Section 2.02(a)(i) of
the Stockholders Agreement) during the one year period, unless required to do so by law or other regulatory requirement. 

        3.6   The
sale of the shares pursuant to Section 3.3 shall be subject to the payment to NeuStar (or, at NeuStar's option, to the Company, which shall pay such amounts
to NeuStar) of amounts due from Melbourne for reimbursement of expenses under Section 3.2 as if Melbourne had been the owner of the shares being sold on the Commencement Date. For example, if
Melbourne purchased up to 42.5% of the Company, Melbourne would be required to pay the difference between what it has already contributed to the reimbursements and what it would have contributed had
it owned 42.5% of the Company. 

        3.7   Within
30 days of April 30, 2001, the Initial Stockholders will agree any adjustments to the amounts previously reimbursed under Sections 3.2 and
3.4 and the parties will make such payments to reflect those agreed adjustments. 

IV.   Representations and Warranties of NeuStar  

        NeuStar hereby represents and warrants that, as of the Commencement Date: 

        4.1    Organization of NeuStar; Power and Authority.    NeuStar is a corporation duly organized, validly existing and
in good standing under the laws of the state of Delaware. NeuStar has all requisite power and authority to own and operate its properties and assets, to execute and deliver this Agreement and all
other agreements contemplated hereby, and to carry on its business as presently conducted and as presently proposed to be conducted. NeuStar is duly qualified and is authorized to do business and is
in good standing as a foreign corporation in all jurisdictions in which the nature of its activities and of
its properties makes such qualification necessary, except for those jurisdictions in which the failure to do so would not have a Material Adverse Effect on NeuStar or the Company. 

        4.2    Due Authorization.    The execution, delivery and performance of this Agreement and all other agreements
contemplated hereby have been duly authorized by NeuStar and any required approvals have been obtained except where the failure to obtain such approval would not have a Material Adverse Effect on
NeuStar or the Company. 

        4.3    Binding Obligation.    This Agreement has been duly executed and delivered by NeuStar and is, and, when duly
executed and delivered, each of the other agreements between the parties hereto contemplated hereby will be, a valid and binding obligation of NeuStar, enforceable in accordance with its terms,
subject to (a) applicable bankruptcy, insolvency, reorganization, fraudulent transfer, moratorium or similar laws affecting creditors' rights generally, and (b) general principles of
equity, including, without limitation, standards of materiality, good faith, fair dealing and reasonableness, 

4

 

equitable
defenses and limits on the availability of equitable remedies, whether such principles are considered at law or in equity. 

        4.4    Conflicts.    Neither the execution and delivery of this Agreement or any of the agreements contemplated hereby
nor the consummation of the transactions contemplated hereby or thereby will: (a) conflict with or violate any provision of the articles of incorporation or bylaws of NeuStar,
(b) conflict with or violate any law, ordinance or regulation or any decree or order of any court or administrative or other governmental body which is either applicable to, binding upon or
enforceable against NeuStar, except as would not individually or in the aggregate, have a Material Adverse Effect on NeuStar or (c) subject to obtaining the consents and waivers set forth in  Schedule 4.4 hereto, result in a breach of, constitute a default under, result in the acceleration of, create in any party the right to
accelerate, terminate, modify or cancel, or require any notice under, any mortgage, contract, agreement, indenture, will, trust or other instrument which is either binding upon or enforceable against
NeuStar or its assets and properties. 

        4.5    Consents.    Other than as set forth on Schedule 4.5
hereto, no registration or filing with, or consent or approval of or other action by, any federal, state or other governmental agency or instrumentality is or will be necessary for the valid
execution, delivery and performance by NeuStar of this Agreement or any agreement contemplated by this Agreement. 

        4.6    Litigation.    Other than as set forth on Schedule 4.6
hereto, there are no actions, suits, claims, arbitrations, proceedings or investigations pending, or to NeuStar's knowledge, threatened or reasonably anticipated against, affecting or involving
NeuStar or any of its Affiliates concerning the transactions contemplated by this Agreement, at law or in equity, or before or by any court, arbitrator, governmental or regulatory authority. 

        4.7    Change in Control.    Since August 1, 2000, there has been no Change in Control of NeuStar, NeuStar has
not entered into any agreement that would result in a Change in Control of NeuStar, and no third party announced any action or intended action that would reasonably result in a Change in Control of
NeuStar. 

        4.8    Investigation.    Prior to the Commencement Date, NeuStar and its representatives have made such investigation
of the business, assets and liabilities of the Company as NeuStar deemed reasonably necessary or advisable. 

V.     Representations and Warranties of Melbourne  

        Melbourne hereby represents and warrants that, as of the Commencement Date: 

        5.1    Organization of Melbourne; Power and Authority.    Melbourne is a corporation duly organized and validly
existing under the laws of Australia. Melbourne has all requisite power and authority to own and operate its properties and assets, to execute and deliver this Agreement and all other agreements
contemplated hereby, and to carry on its business as presently conducted and as presently proposed to be conducted. Melbourne is duly qualified and is authorized to do business and is in good standing
as a foreign corporation in all jurisdictions in which the nature of its activities and of its properties makes such qualification necessary, except for those jurisdictions in which the failure to do
so would not have a Material Adverse Effect on Melbourne or the Company. 

        5.2    Due Authorization.    The execution, delivery and performance of this Agreement and all other agreements
contemplated hereby have been duly authorized by Melbourne and any required approvals have been obtained except where the failure to obtain such approval would not have a Material Adverse Effect on
Melbourne or the Company. 

        5.3    Binding Obligation.    This Agreement has been duly executed and delivered by Melbourne and is, and, when duly
executed and delivered, each of the other agreements between the parties hereto 

5

 

contemplated
hereby will be, a valid and binding obligation of Melbourne, enforceable in accordance with its terms, subject to (a) applicable bankruptcy, insolvency, reorganization, fraudulent
transfer, moratorium or similar laws affecting creditors' rights generally, and (b) general principles of equity, including, without limitation, standards of materiality, good faith, fair
dealing and reasonableness, equitable defenses and limits on the availability of equitable remedies, whether such principles are considered at law or in equity. 

        5.4    Conflicts.    Neither the execution and deliver of this Agreement or any of the agreements contemplated hereby
nor the consummation of the transactions contemplated hereby or thereby will: (a) conflict with or violate any provision of the articles of incorporation or bylaws of Melbourne,
(b) conflict with or violate any law, ordinance or regulation or any decree or order of any court or administrative or other governmental body which is either applicable to, binding upon or
enforceable against Melbourne, except as would not individually or in the aggregate, have a Material Adverse Effect on Melbourne or (c) subject to obtaining the consents and waivers set forth
on Schedule 5.4 hereto, result in a breach of, constitute a default under, result in the acceleration of, create in any party the right to
accelerate, terminate, modify or cancel, or require any notice under, any mortgage, contract, agreement, indenture, will, trust or other instrument which is either binding upon or enforceable against
Melbourne or its assets and properties. 

        5.5    Consents.    Other than as set forth on Schedule 5.5
hereto, no registration or filing with, or consent or approval of or other action by, any federal, state or other governmental agency or instrumentality is or will be necessary for the valid
execution, delivery and performance by Melbourne of this Agreement or any agreement contemplated by this Agreement. 

        5.6    Litigation.    Other than as set forth on Schedule 5.6
hereto, there are no actions, suits, claims, arbitrations, proceedings or investigations pending, or to Melbourne's knowledge, threatened or reasonably anticipated against, affecting or involving
Melbourne or any of its Affiliates concerning the transactions contemplated by this Agreement, at law or in equity, or before or by any court, arbitrator, governmental or regulatory authority. 

        5.7    Change in Control.    Since August 1, 2000, there has been no Change in Control of Melbourne, Melbourne
has not entered into any agreement that would result in a Change in Control of Melbourne, and no third party announced any action or intended action that would reasonably result in a Change in Control
of Melbourne. 

        5.8    Investigation.    Prior to the Commencement Date, Melbourne and its representatives have made such
investigation of the business, assets and liabilities of the Company as Melbourne deemed reasonably necessary or advisable. 

VI.  Covenants  

        6.1   Intentionally
Omitted. 

        6.2    Confidentiality.    

        (a)   NeuStar,
Melbourne and their respective Affiliates, consultants, agents and advisors (each a "Receiving Party") shall treat confidentially all information in whatever
form maintained or communicated, whether documentary, computerized or otherwise, pertaining to the other party (the "Providing Party") that is provided to a Receiving Party in connection with the
transactions contemplated by this Agreement, including, without limitation, data, reports, analyses, projections, plans, specifications, drawings, sketches, models, computer programs and other
technical, business and financial materials except for portions of such information that (i) become generally available to the public other than as a result of disclosure by the Receiving
Party, (ii) were available to the Receiving Party on a non-confidential basis prior to disclosure in connection with the transactions contemplated by this Agreement,
(iii) become available to the Receiving Party on a 

6

 

non-confidential
basis from a source other than the Providing Party or (iv) were developed independently by the Receiving Party without reference to the information provided by the
Providing Party. 

        (b)   Except
as agreed to by NeuStar and Melbourne, each of them and their respective Affiliates, consultants, agents and advisors shall treat confidentially all information
in whatever form maintained or communicated, whether documentary, computerized or otherwise, pertaining to the Company and this Agreement and the transactions contemplated hereby, including, without
limitation, marketing plans, projections, customer information, and technical business and financial materials, except for portions of such information that (i) become generally available to
the public other than as a result of disclosure not in accordance with this Agreement or other obligations to keep such information confidential, (ii) were available on a
non-confidential basis prior to disclosure in connection with the transactions contemplated by this Agreement, (iii) become available on a non-confidential basis from a
source other than an entity subject to obligations of confidentiality or (iv) were developed independently by a party to the this Agreement. 

        (c)   If
either party determines that it is required by law to disclose information about the Company or the transactions contemplated by this Agreement, it shall, a
reasonable time before making any such disclosure, consult with the other party regarding such disclosure and seek confidential treatment for such portions of the disclosure as may be requested by the
other party. No press release or other public announcement related to this Agreement or the transactions contemplated by this Agreement will be issued by either party without the prior approval of the
other party. 

        6.3    Contacts with ICANN; Registry.    None of NeuStar, Melbourne or any of their respective Affiliates (other than
the Company) shall discuss any Bid with ICANN or any entity with which the Company is negotiating to provide registry services without the prior consent of the other party. NeuStar and Melbourne
shall, wherever practicable, jointly conduct discussions regarding any Bid with ICANN or any entity with which the Company is negotiating to provide registry services. In their discussions with ICANN,
NeuStar and Melbourne shall advocate as strongly as practicable the desirability of Melbourne's participation in the Company on the terms proposed by NeuStar and Melbourne. If ICANN considers that
Melbourne's involvement in a Bid or in provision of registry services constitutes an unacceptable level of "Registrar involvement" and if required to secure the Bid or contract for provision of
registry services, NeuStar and Melbourne will take the actions or cause the Company to take the actions required to reduce Melbourne's control of voting securities of the Company, including,  e.g., by
establishing a voting trust, to reduce Melbourne's voting power while maintaining Melbourne's equity interest in the Company, but only to the
extent necessary to satisfy ICANN's concerns. If the reduction of Melbourne's voting power is no longer required, NeuStar, Melbourne and the Company shall take such actions as may be required to
restore Melbourne's voting power. 

        6.4    Further Assurances.    Subject to the terms and conditions herein provided, each party shall use its
commercially reasonable best efforts to (a) take, or cause to be taken, all actions, and to do, or cause to be done as promptly as practicable, all things necessary, proper or advisable under
applicable laws to consummate and effect the transactions contemplated by this Agreement, including providing all notices and making all registrations, filings and applications necessary or desirable
for the consummation of the transactions contemplated herein; (b) defend any lawsuits or other legal proceedings (whether judicial or administrative) challenging this Agreement or the
consummation of the transactions contemplated herein, including seeking to have any stay or temporary restraining order entered by any court or other governmental authority vacated or reversed; and
(c) fulfill or obtain the fulfillment of all other conditions to Closing. 

7

   
        6.5    Survival of Representations, Warranties and Obligations of Confidentiality.    Unless otherwise stated, the
obligations of confidentiality in Section 6.2, and the representations and warranties of NeuStar and Melbourne contained in or made pursuant to this Agreement shall survive the execution and
delivery of this Agreement for a period of six (6) months. 

VII.    Equity Investment in NeuStar  

        7.1    Private Placement.    If prior to the Initial Public Offering as defined in Section 7.2, NeuStar (or an
entity which is a successor to or parent of NeuStar as a result of a corporate restructuring, but not a successor to or parent of NeuStar as the result of a Change in Control) proposes to issue Equity
Securities in a private offering which generates gross proceeds to NeuStar of at least $50 million (a "Qualifying Private Offering"), NeuStar shall send written notice to Melbourne identifying
the Equity Securities to be sold and the initial proposed terms of the proposed offering and offer to Melbourne the opportunity to purchase up to twenty percent (20%) of the Equity Securities being
offered on all the relevant terms and conditions offered by NeuStar to, and accepted by, the other offerees in such offering. NeuStar's offer to Melbourne shall remain open for at least ten
(10) business days from the date of the final offer and terms being notified to Melbourne. Any Equity Securities so offered to Melbourne that Melbourne does not elect to purchase may be sold by
NeuStar in accordance with the terms of the proposed offering. The rights of Melbourne under this Section 7.1 shall continue after termination of this Agreement in accordance with
Section 9.2, but shall expire earlier on the first to occur of (i) the acquisiton by Melbourne or its successor in interest of all of NeuStar's interest in the Company; (ii) the
Bankruptcy, liquidation or dissolution of Melbourne; and (iii) the closing of the first Qualifying Private Offering. Melbourne shall have the same registration rights afforded other purchasers
of similar amounts of Equity Securities in the Qualifying Private Offering. 

        7.2    Initial Public Offering.    If NeuStar (or an entity which is a successor to or parent of NeuStar as a result
of a corporate restructuring, but not a successor to or parent of NeuStar as the result of a Change in Control) makes an initial public offering of common stock pursuant to a registration statement
(other than on Form S-8 or Form S-4 or their respective successor forms) filed with the Securities and Exchange Commission (the "Initial Public Offering"),
NeuStar shall offer Melbourne the opportunity (to occur within 30 days of such Initial Public Offering or such later date as Melbourne agrees) to purchase in a private placement or registered
offering, at NeuStar's option, up to the lesser (in terms of number of shares) of (a) the number of shares of common stock that, together with Melbourne's existing ownership of NeuStar Equity
Securities, would result in Melbourne owning 4.9% of NeuStar's issued and outstanding Equity Securities after giving effect to the Initial Public Offering or (b) $20 million worth of
unregistered NeuStar common stock (of the class offered to the public and valued at the price per share to be offered to the public), at the same price per share to be offered to the public and
contemporaneous with such Initial Public Offering. Melbourne shall make such representations and warranties as are usual in a private placement or registered offering under such circumstances. The
rights of Melbourne under this Section 7.2 shall continue after termination of this Agreement in accordance with Section 9.2, but shall expire earlier on the first to occur of
(i) the acquisition by Melbourne or its successor in interest acquires all of NeuStar's interest in the Company; (ii) the Bankruptcy, dissolution or liquidation of Melbourne; and
(iii) the closing of the Initial Public Offering. Melbourne shall agree to any reasonable lock-up requested by an underwriter in connection with the initial public offering,  provided, however, that
such lock-up does not exceed 180 days and applies equally to officers, directors and significant stockholders
of NeuStar. After the expiration of any lock-up period, NeuStar shall provide Melbourne the registration rights set forth in Schedule 11.03 of the Stockholders Agreement to register
NeuStar Equity Securities held by Melbourne for sale to the public, provided that NeuStar will not be required to register NeuStar Equity Securities for public sale within one year of the date of this
Agreement. These registration rights shall terminate if the Stockholders' Agreement is terminated pursuant to Section 11.01(b) or (c) of the Stockholders' 

8

 

Agreement
or if Melbourne is in default of its obligations under Section 7.02(b)(i) of the Stockholders' Agreement. 

        7.3    Compliance with Laws.    All offers and/or sales of securities pursuant to Sections 7.1 or 7.2 above
will be made in compliance with all applicable federal and state securities laws. Any securities acquired by Melbourne pursuant to Sections 7.1 or 7.2 shall be subject to restrictions on
transfer and sale under applicable federal and state securities laws. The provisions of Sections 7.1 and 7.2 above will not apply to offers and/or sales of securities to be issued (a) as
consideration in a merger or an acquisition; or (b) in connection with the grant or exercise of options or other stock-based awards to NeuStar's employees, officers, directors or consultants.
The rights under Sections 7.1 and 7.2 are unique to Melbourne and are not assignable or transferable. Melbourne represents that, to its knowledge, if Melbourne's rights under Section 7.1
and 7.2 were exercised on the Commencement Date, NeuStar would not be required to register under Australian law any securities offered or transactions undertaken and shall not be required to become
subject to Australian law by reason of the offer or sale of securities to Melbourne pursuant to Section 7.1 or 7.2. NeuStar shall not be required to register any of the securities offered or
the sales transaction pursuant to Section 7.1 or 7.2 under Australian law and shall not be required to submit to Australian jurisdiction in connection therewith, and Melbourne IT may not
require NeuStar to register under Australian law any securities offered or transactions undertaken pursuant to Sections 7.1 or 7.2. Melbourne will provide NeuStar, at the time of Melbourne
exercising its rights under Sections 7.1 or 7.2, a legal opinion on the applicability, if any, of Australian
law to NeuStar by reason of Melbourne's involvement in the transaction. NeuStar and Melbourne shall cooperate in taking such steps as may be reasonably required to facilitate the sale of securities
pursuant to Sections 7.1 and 7.2 without registration under Australian law of the securities offered or the sales transaction entered pursuant to Section 7.1 or 7.2 or NeuStar submitting
to Australian jurisdiction in connection therewith. 

VIII.     Intentionally Deleted  

IX.   Termination  

        9.1   If
the Stockholders Agreement is terminated for any reason, this Agreement will also be terminated. 

        9.2   Sections 3.5,
6.2, 7.01, 7.02, 7.03 and 10.1 will survive termination of this Agreement in accordance with the Stockholders Agreement. 

X     Miscellaneous  

        10.1    Expenses.    Each party shall bear its respective costs and expenses in connection with entering into this
Agreement and the agreements contemplated hereby. 

        10.2    Amendment and Waiver.    This Agreement may be amended and any provision of this Agreement may be waived,  provided, however,
that, any such amendment or waiver will be binding upon a party only if such amendment or waiver is set forth in a writing executed
by NeuStar and Melbourne. No course of dealing between or among any persons having any interest in this Agreement will be deemed effective to modify, amend or discharge any part of this Agreement or
any rights or obligations of any party under or by reason of this Agreement. 

        10.3    Notices.    All notices and other communications given or delivered under this Agreement will be in writing
and shall be made by hand delivery, overnight courier, first-class mail, or telecopier and will be deemed to have been given when personally delivered, four business days after being mailed by first
class mail, return receipt requested, or delivered by express courier service or telecopied 

9

 

(subject
to receipt of written confirmation). Notices, and communications to NeuStar and Melbourne will, unless another address is specified in writing, be sent to the addresses below: 

        Notices
to NeuStar: 

NeuStar, Inc.

1120 Vermont Ave. NW

Washington, DC 20005

Attention: Chairman and CEO

Telecopy: 

        With
a copy to: 

Gibson,
Dunn & Crutcher LLP

1050 Connecticut Avenue N.W.

Washington, D.C. 20036

Attention: Stephen I. Glover, Esq.

Telecopy: (202) 467-0539 

        Notices
to Melbourne: 

Melbourne
IT Limited

120 King Street

Melbourne Victoria

Australia 3000

Attention: Adrian Kloeden

Telecopy: +61 3 8624 2499 

        10.4    Binding Agreement: Assignment.    This Agreement and all of the provisions hereof will be binding upon and
inure to the benefit of the parties hereto and their respective successors and permitted
assigns, but neither this Agreement nor any of the rights, interests or obligations hereunder may be assigned by a party without the prior written consent of the other party. Melbourne may assign its
equity interest and its right to acquire additional equity in the Company to a wholly-owned subsidiary of Melbourne, provided, however, that the
obligations and liabilities of such wholly-owned subsidiary are guaranteed by Melbourne pursuant to an agreement in form and substance satisfactory to NeuStar. 

        10.5    Severability.    Whenever possible, each provision of this Agreement will be interpreted in such manner as to
be effective and valid under applicable law, but if any provision of this Agreement is held to be prohibited by or invalid under applicable law, such provision will be ineffective only to the extent
of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions of this Agreement. 

        10.6    No Strict Construction.    The language used in this Agreement will be deemed to be the language chosen by the
parties hereto to express their mutual intent, and no rule of strict construction will be applied against any person. 

        10.7    Heading: Interpretation.    The headings used in this Agreement are for convenience of reference only and do
not constitute a part of this Agreement and will not be deemed to limit, characterize or in any way affect any provision of this Agreement, and all provisions of this Agreement will be enforced and
construed as if no caption had been used in this Agreement. 

        10.8    Entire Agreement.    This Agreement and the documents contemplated hereby contain the entire agreement between
the parties and supersede any prior understandings, agreements or representations by or between the parties, written or oral, which may have related to the subject matter hereof in any way. 

10

 

        10.9    Counterparts.    This Agreement may be executed in one or more counterparts, each of which shall be deemed an
original but all of which taken together will constitute one and the same instrument. 

        10.10    Schedules to form part of this Agreement.    The parties to this Agreement intend that the schedules attached
hereto shall form part of this Agreement. 

        10.11    Governing Law.    This Agreement shall be governed by, and construed in accordance with, the laws of the
State of New York applicable to contracts executed in and to be performed in that State. 

        10.12    Parties in Interest.    Nothing in this Agreement, express or implied, is intended to confer on any person
other than the parties and their respective successors and permitted assigns any rights or remedies under or by virtue of this Agreement. 

        10.13    Dispute Resolution.    If there is a dispute between the parties in connection with this Agreement then,
prior to any party commencing court proceedings in relation to that dispute, within ten business days of a party notifying the other party of the dispute in accordance with Section 10.3, the
CEOs from each of Melbourne IT, NeuStar and the Company must meet (by telephone or other means if necessary) and acting in good faith seek to resolve the dispute. If the parties are unable to resolve
the dispute within 10 business days, the parties may only then commence court proceedings in relation to the dispute, provided however that a party may seek preliminary injunctive relief during the 10
business day period. 

        10.14    Jurisdiction.    Any suit, action or proceeding seeking to enforce any provision of, or based on any matter
arising out of or in connection with, this Agreement or the transactions contemplated hereby shall be brought in the United States District Court for the District of Delaware (or, if subject matter
jurisdiction is unavailable, in the state courts of the State of Delaware), and each of the parties to this Agreement hereby consents to the exclusive jurisdiction of such court (and of the
appropriate appellate court) in any such suit, action or proceeding and waives any objection to venue laid therein. Process in any such suit, action or proceeding may be served on any party anywhere
in the world, whether within or without the State of Delaware. Without limiting the foregoing, each party agrees that service of process upon such party at the address referred to in
Section 10.3, together with written notice of such service to such party, shall be deemed effective service of process upon such party. 

11

 

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

	 	 	NEUSTAR, INC.
	

 	
 	

By:	
 	

/s/  JEFFREY E. GANEK      
	 	 	 	 	

	 	 	Name: Jeffrey E. Ganek
	 	 	Title: Chairman and CEO
	

 	
 	

Witnessed by:	
 	

/s/  EDWARD FREITAG      
	 	 	 	 	 	 	

	 	 	Name: Edward Freitag
	 	 	Title: Secretary
	

 	
 	

MELBOURNE IT LIMITED.
	

 	
 	

By:	
 	

/s/  JOHN HARRY      
	 	 	 	 	

	 	 	Name: John Harry
	 	 	Title: Duly Authorized Representative
	

 	
 	

Witnessed by:	
 	

/s/  BENJAMIN D. LEHMAN      
	 	 	 	 	 	 	

	 	 	Name: Benjamin D. Lehman
	 	 	Title:

12

  

 
 

Schedule 2.5    
    
    Initial Budget    
    

13

 
 
 

Schedule 3.2    
    
    Expenses incurred by each party up to the date of the Agreement    
    

        The amount of expenses incurred by the parties up to the date of this Agreement is included in the Initial Capital Contributions listed in Schedule 3.01 of
the Stockholders Agreement and reflected in the Initial Budget. The amount will be adjusted according to Section 3.7. 

14

 
 
 

Schedule 4.4    
    
    NeuStar conflict consents and waivers    
    

        None. 

15

 
 
 

Schedule 4.6    
    
    NeuStar regulatory consents    
    

        No consent of any United States federal, state or local governmental agency or instrumentality is required, except to the extent that Blue Sky or securities law
of any state or other jurisdiction may require the registration of the sale of securities of NeuStar, Inc. 

16

 
 
 

Schedule 4.7    
    
    NeuStar existing litigation    
    

        None. 

17

 
 
 

Schedule 5.4    
    
    Melbourne conflict consents and waivers    
    

        None. 

18

 
 
 

Schedule 5.6    
    
    Melbourne regulatory consents    
    

        None. 

19

 
 
 

Schedule 5.7    
    
    Melbourne existing litigation    
    

        None. 

20

 
 
 

Exhibit 2.1(b)    
    
    Original Subscription Agreements    
    

21

 
 
 

Exhibit 2.1(c)    
    
    Certificate of Formation    
    

22

 
 
 

Exhibit 2.3(a)    
    
    Certificate of Incorporation    
    

23

 
 
 

Exhibit 2.3(b)    
    
    Bylaws and Organizational Resolutions    
    

24

 
 
 

Exhibit 3.1(a)    
    
    Subscription Agreement for additional 350 shares of Common Stock to be issued to NeuStar    
    

25

 
 
 

Exhibit 3.1(b)    
    
    Stockholders' Agreement    
    

26

QuickLinks

JOINT VENTURE FORMATION AGREEMENT

Schedule 2.5 Initial Budget

Schedule 3.2 Expenses incurred by each party up to the date of the Agreement

Schedule 4.4 NeuStar conflict consents and waivers

Schedule 4.6 NeuStar regulatory consents

Schedule 4.7 NeuStar existing litigation

Schedule 5.4 Melbourne conflict consents and waivers

Schedule 5.6 Melbourne regulatory consents

Schedule 5.7 Melbourne existing litigation

Exhibit 2.1(b) Original Subscription Agreements

Exhibit 2.1(c) Certificate of Formation

Exhibit 2.3(a) Certificate of Incorporation

Exhibit 2.3(b) Bylaws and Organizational Resolutions

Exhibit 3.1(a) Subscription Agreement for additional 350 shares of Common Stock to be issued to NeuStar

Exhibit 3.1(b) Stockholders' Agreement

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