Exhibit 99.5
THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE 2004 WARRANT
AND REGISTRATION RIGHTS AGREEMENT HEREINAFTER REFERRED TO AND IS REGISTERED IN
THE NAME OF A DEPOSITORY OR A NOMINEE OF A DEPOSITORY OR A SUCCESSOR DEPOSITORY.
THIS SECURITY IS NOT EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A
PERSON OTHER THAN THE DEPOSITORY OR ITS NOMINEE EXCEPT IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE 2004 WARRANT AND REGISTRATION RIGHTS AGREEMENT,
AND NO TRANSFER OF THIS SECURITY (OTHER THAN A TRANSFER OF THIS SECURITY AS A
WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE DEPOSITORY OR BY A NOMINEE OF THE
DEPOSITORY TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY) MAY BE
REGISTERED EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE 2004 WARRANT AND
REGISTRATION RIGHTS AGREEMENT. UNLESS THIS CERTIFICATE IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK
CORPORATION ("DTC"), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS
THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES
ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE
OFFERED OR SOLD EXCEPT AS SET FORTH BELOW. BY ITS ACQUISITION HEREOF, THE HOLDER
(1) REPRESENTS THAT IT IS A "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN RULE
144A UNDER THE SECURITIES ACT), (2) AGREES THAT IT WILL NOT WITHIN TWO YEARS
AFTER THE ORIGINAL ISSUANCE OF THIS SECURITY RESELL OR OTHERWISE TRANSFER THIS
SECURITY EXCEPT (A) TO THE ISSUER OR ANY SUBSIDIARY THEREOF, (B) TO A QUALIFIED
INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT, OR
(C) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER
THE SECURITIES ACT (AND WHICH CONTINUES TO BE EFFECTIVE AT THE TIME OF SUCH
TRANSFER) AND (3) AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS
SECURITY IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND.
THE SHARES OF STOCK PURCHASABLE UPON EXERCISE OF THE WARRANTS REPRESENTED
BY THIS CERTIFICATE ARE ALSO SUBJECT TO THE 2004 WARRANT AND REGISTRATION RIGHTS
AGREEMENT AND THE SECURITIES EXCHANGE AGREEMENT TO WHICH THE ISSUER AND THE
WARRANT AGENT ARE PARTY, A COPY OF WHICH MAY BE INSPECTED AT THE PRINCIPAL
OFFICE OF THE ISSUER OR OBTAINED FROM THE ISSUER WITHOUT CHARGE.
iBASIS, INC.
No. W-4 5,176,065 Warrants
CUSIP NO: 450732 12 8
WARRANT CERTIFICATE
This Warrant Certificate certifies that CEDE & Co., or its registered
assigns, is the registered holder of warrants expiring June 18, 2007 (the
"Warrants") to purchase shares of Common Stock, par value $0.001 per share (the
"Common Stock"), of iBasis, Inc., a Delaware Corporation (the "Company"). Each
Warrant entitles the holder upon exercise to receive from the Company on or
after the date of issuance of such Warrant and on or before 5:00 P.M. Boston
Time on June 18, 2007 (the "Expiration Date"), one fully paid and nonassessable
share of Common Stock (a "Warrant Share") at the initial exercise price (the
"Exercise Price") of $1.85 payable in lawful money of the United States of
America upon surrender of this Warrant Certificate and payment of the Exercise
Price at the office or agency of the Warrant Agent, but only subject to the
conditions set forth herein and in the 2004 Warrant and Registration Rights
Agreement referred to on the reverse hereof. The Exercise Price and number of
Warrant Shares issuable upon exercise of the Warrants are subject to adjustment
upon the occurrence of certain events set forth in the 2004 Warrant and
Registration Rights Agreement.
No Warrant may be exercised after the Expiration Date, and to the extent
not exercised by such time such warrants shall become void.
This Warrant Certificate shall not be valid unless countersigned by the
Warrant Agent, as such term is used in the 2004 Warrant and Registration Rights
Agreement.
This Warrant Certificate, and all actions, claims and conduct relating
thereto, shall be governed by and construed in accordance with the laws of The
Commonwealth of Massachusetts, without regard to the principles of conflicts of
laws.
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IN WITNESS WHEREOF, iBasis, Inc. has caused this Warrant Certificate to be
duly executed.
Dated: June 18, 2004
iBASIS, INC.
By: /s/ Xxxxxx X. XxxxxxXxxx
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Name: Xxxxxx X. XxxxxxXxxx
Title: Executive Vice President
WARRANT AGENT'S CERTIFICATE OF AUTHENTICATION
This is one of the Warrants described in the within-named 2004 Warrant and
Registration Rights Agreement.
U.S. BANK NATIONAL ASSOCIATION, as Warrant Agent
By: /s/ Xxxx X. XxXxxxx
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Name: Xxxx X. XxXxxxx
Title: Assistant Vice President
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iBASIS, INC.
The Warrants evidenced by this Warrant Certificate are part of a duly
authorized issue of Warrants expiring June 18, 2007, entitling the holder on
exercise to receive shares of Common Stock and are issued or to be issued
pursuant to a 2004 Warrant and Registration Rights Agreement dated as of June
18, 2007 (the "2004 Warrant and Registration Rights Agreement"), duly executed
and delivered by the Company to U.S. Bank National Association, as warrant agent
(the "Warrant Agent"), which 2004 Warrant and Registration Rights Agreement is
hereby incorporated by reference in and made a part of this instrument and is
hereby referred to for a description of the rights, limitation of rights,
obligations, duties and immunities thereunder of the Warrant Agent, the Company
and the holders (the words "holders" or "holder" meaning the registered holders
or registered holder) of the Warrants. A copy of the 2004 Warrant and
Registration Rights Agreement may be obtained by the holder hereof upon written
request to the Company. Capitalized terms used herein without being otherwise
defined shall have the meaning ascribed to them in the 2004 Warrant and
Registration Rights Agreement.
Each Warrant may be exercised at any time on or after the date of issuance
of such Warrant and on or before the Expiration Date. The holder of Warrants
evidenced by this Warrant Certificate may exercise them as follows:
(I) The Warrants evidenced by this Warrant Certificate may be
exercised by the holder hereof, in whole or in part, during normal
business hours on any Business Day on or prior to the Expiration Date,
by surrender of this Warrant Certificate to the Company at its
principal office, accompanied by a subscription substantially in the
form attached to this Warrant Certificate duly executed by such holder
and accompanied by (a) wire transfer of immediately available funds or
(b) certified or official bank check payable to the order of the
Company, in each case in the amount obtained by multiplying (i) the
number of shares of Common Stock (without giving effect to any
adjustment thereof pursuant to the provisions of the 2004 Warrant and
Registration Rights Agreement) for which the Warrant evidenced by this
Warrant Certificate is then being exercised, as designated in such
subscription, by (ii) the Initial Exercise Price. Thereupon, such
holder shall be entitled to receive the number of duly authorized,
validly issued, fully paid and nonassessable shares of Common Stock
(or Other Securities) determined as provided in Sections 6 and 7 of
the 2004 Warrant and Registration Rights Agreement.
(II) The Warrants evidenced by this Warrant Certificate may be
converted by the holder hereof, in whole or in part, into shares of
Common Stock (or Other Securities), during normal business hours on
any Business Day on or prior to the Expiration Date, by surrender of
this Warrant Certificate to the Company at its principal office,
accompanied by a conversion notice substantially in the form attached
to this Warrant Certificate duly executed by such holder. Thereupon,
such holder shall be entitled to receive a number of duly authorized,
validly issued, fully paid and nonassessable shares of Common Stock
(or Other Securities) equal to:
(a) the excess of
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(i) (x) the number of shares of Common Stock (or Other Securities)
determined as provided in Sections 6 and 7 of the 2004 Warrant and
Registration Rights Agreement which such holder would be entitled to
receive upon exercise of the Warrants represented by this Warrant
Certificate for the number of shares of Common Stock designated in such
conversion notice (without giving effect to any adjustment thereof pursuant
to Sections 6 or 7 of the 2004 Warrant and Registration Rights Agreement)
MULTIPLIED BY (y) the Current Market Price of each such share of Common
Stock (or such Other Securities) so receivable upon such exercise
OVER
(ii) (x) the number of shares of Common Stock (without giving effect
to any adjustment thereof pursuant to Sections 6 or 7 of the 2004 Warrant
and Registration Rights Agreement or other provisions thereof) which such
holder would be entitled to receive upon exercise of the Warrants
represented by this Warrant Certificate for the number of shares of Common
Stock designated in such conversion notice (without giving effect to any
adjustment thereof pursuant to Sections 6 or 7 of the 2004 Warrant and
Registration Rights Agreement) MULTIPLIED BY (y) the Initial Exercise Price
DIVIDED BY
(b) such Current Market Price of each such share of Common Stock (or Other
Securities).
In the event that upon any exercise of Warrants evidenced hereby the number
of Warrants exercised shall be less than the total number of Warrants evidenced
hereby, there shall be issued to the holder hereof or its assignee a new Warrant
Certificate of like tenor, dated the date hereof and calling in the aggregate on
the face or faces thereof for the number of Warrants (without giving effect to
any adjustment thereof pursuant to the terms of the 2004 Warrant and
Registration Rights Agreement) to the number of Warrants called for on the face
of this Warrant Certificate minus the number of Warrants designated by the
holder upon such exercise.
Upon the exercise of the Warrants evidenced by this Warrant Certificate as
provided above, the Company may elect either (i) to comply with the requirements
of Section 7.1.3 of the 2004 Warrant and Registration Rights Agreement with
respect to the issuance of shares of Common Stock in connection with such
exercise or (ii) upon written notice to the holder not more than two Business
Days following the date of exercise, to pay to the holder an amount equal to the
Market Price for each share of Common Stock issuable upon such exercise (the
"Cash Close Out") in lieu of issuing such Common Stock. Any Cash Close Out made
in accordance with this paragraph shall be paid within two Business Days of the
exercise of the Warrants evidenced by this Warrant Certificate by (a) wire
transfer of immediately available funds or (b) certified or official bank check
payable to the order of the holder hereof.
The Company will not be required to issue fractional shares of Common Stock
upon exercise of the Warrants or distribute share certificates that evidence
fractional shares of Common Stock. In lieu of fractional shares of Common Stock,
there may be paid to the registered Holder of this Warrant Certificate at the
time such Warrant Certificate is exercised an amount in cash equal to the same
fraction of the Current Market Value per share of Common
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Stock on the Business Day immediately proceeding the date this Warrant
Certificate is surrendered for exercise.
The holders of the Warrants are entitled to certain registration rights
with respect to the Common Stock purchasable upon exercise thereof. Such
registration rights are set forth in Section 8 of the 2004 Warrant and
Registration Rights Agreement.
Warrant Certificates, when surrendered at the office of the Warrant Agent
by the registered holder thereof in person or by legal representative or
attorney duly authorized in writing, may be exchanged, in the manner and subject
to the limitations provided in the 2004 Warrant and Registration Rights
Agreement, but without payment of any service charge, for another Warrant
Certificate or Warrant Certificates of like tenor evidencing in the aggregate a
like number of Warrants.
Upon due presentation for registration of transfer of this Warrant
Certificate at the office of the Warrant Agent a new Warrant Certificate or
Warrant Certificates of like tenor and evidencing in the aggregate a like number
of Warrants shall be issued to the transferee(s) in exchange for this Warrant
Certificate, subject to the limitations provided in the 2004 Warrant and
Registration Rights Agreement, without charge except for any tax or other
governmental charge imposed in connection therewith.
The Company and the Warrant Agent may deem and treat the registered
holder(s) thereof as the absolute owner(s) of this Warrant Certificate
(notwithstanding any notation of ownership or other writing hereon made by
anyone), for the purpose of any exercise hereof, of any distribution to the
holder(s) hereof, and for all other purposes, and neither the Company nor the
Warrant Agent shall be affected by any notice to the contrary. Neither the
Warrants nor this Warrant Certificate entitled any holder hereof to any rights
of a stockholder of the Company.
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FORM OF SUBSCRIPTION
[To be executed only upon exercise of Warrant]
To iBasis, Inc.:
The undersigned hereby irrevocably elects to exercise the right,
represented by this Warrant Certificate, to receive __________(1) shares of the
Common Stock and herewith makes payment of $_____ in accordance with the terms
hereof, and requests that the certificates for such shares be issued in the name
of, and delivered to _______________, whose address is as follows:
Dated:
----------------------------------------
(Signature must conform in all respects
to name of holder as specified on the
face of Warrant)
----------------------------------------
(Street Address)
----------------------------------------
(City) (State) (Zip Code)
----------
(1) Insert here the number of shares called for on the face of this Warrant
Certificate (or, in the case of a partial exercise, the portion thereof as to
which the Warrant evidenced by this Warrant Certificate is being exercised), in
either case without making any adjustment for any stock or other securities or
property or cash which, pursuant to the adjustment provisions of the Warrant
evidenced by this Warrant Certificate, may be delivered upon exercise. In the
case of a partial exercise, a new Warrant Certificate will be issued and
delivered, representing the unexercised portion of the Warrant evidenced by this
Warrant Certificate, to the holder surrendering the Warrant Certificate.
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FORM OF ASSIGNMENT
[To be executed only upon transfer of Warrant]
For value received, the undersigned registered holder of the Warrants
evidenced by this Warrant Certificate hereby sells, assigns and transfers unto
__________________the right represented by such Warrant Certificate to purchase
_______(2) shares of Common Stock of iBasis, Inc. to which such Warrant
Certificate relates, and appoints _______________Attorney to make such transfer
on the books of iBasis, Inc. maintained for such purpose, with full power of
substitution in the premises.
Dated:
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(Signature must conform in all respects
to name of holder as specified on the
face of Warrant)
----------------------------------------
(Street Address)
----------------------------------------
(City) (State) (Zip Code)
Signed in the presence of:
-----------------------------
Name:
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(2) Insert here the number of shares called for on the face of this Warrant
Certificate (or, in the case of a partial transfer, the portion thereof as to
which the Warrant evidenced by this Warrant Certificate is being transferred),
in either case without making any adjustment for any stock or other securities
or property or cash which, pursuant to the adjustment provisions of the Warrant
evidenced by this Warrant Certificate, may be delivered upon exercise. In the
case of a partial transfer, a new Warrant Certificate will be issued and
delivered, representing the non-transferred portion of the Warrants evidenced by
this Warrant Certificate, to the holder transferring the Warrants.
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FORM OF CONVERSION NOTICE
To iBasis, Inc.:
The undersigned registered holder of the Warrants evidenced by this Warrant
Certificate hereby irrevocably converts such Warrants with respect to
________(3) shares of the Common Stock which such holder would be entitled to
receive upon the exercise hereof, and requests that the certificates for such
shares be issued in the name of, and delivered to _________________, whose
address is as follows:
Dated:
----------------------------------------
(Signature must conform in all respects
to name of holder as specified on the
face of Warrant)
----------------------------------------
(Street Address)
----------------------------------------
(City) (State) (Zip Code)
----------
(3) Insert here the number of shares called for on the face of this Warrant
Certificate (or, in the case of a partial conversion, the portion thereof as to
which the Warrants evidenced by this Warrant Certificate are being converted),
in either case without making any adjustment for additional shares of Common
Stock or any other stock or other securities or property or cash which, pursuant
to the adjustment provisions of the Warrant evidenced by this Warrant
Certificate, may be delivered upon exercise. In the case of a partial
conversion, a new Warrant Certificate will be issued and delivered, representing
the unconverted portion of the Warrants, to the holder surrendering this Warrant
Certificate.
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