GST Telecommunications, Inc.
GST Newco of Texas, Inc.
0000 X.X. Xxxxxxxx Xxx
Xxxxxxxxx, Xxxxxxxxxx 00000
October 17, 1996
TotalNet Communications, Inc.
000 Xxxx Xxx Xxxxxxxxx
Xxxxx 000
Xxxxxxx, Xxxxx 00000
Gentlemen:
Reference is made to that certain Agreement and Plan of Merger dated
September 27, 1996 by and among us (the "Merger Agreement"). All capitalized
terms used herein and not otherwise defined shall have the meanings accorded
them in the Merger Agreement.
The following constitutes our agreement in respect of amendment of the
Merger Agreement:
1. The proviso contained in the seventh sentence of Section 1.7 of the
Merger Agreement is amended in its entirety to be and read as follows:
PROVIDED, HOWEVER, that in the case of such shares issuable on the
first anniversary of the Closing Date, in the event that (A) the
average sales price computed in accordance with this sentence is less
than 70% of the Market Price on the Closing Date (or appropriately
adjusted from such Market Price in the event that any anti-dilution
event as set forth in Section 1.8 shall occur after the date of this
Agreement), the Market Price shall nevertheless be fixed at 70% of the
Market Price on the Closing Date (or appropriately adjusted from such
Market Price in the event that any anti-dilution event as set forth in
Section 1.8 shall occur after the date of this Agreement) and (B) the
average sales price computed in accordance with this sentence is
greater than $20 (or appropriately adjusted from $20 in the event that
any anti-dilution event as set forth in Section 1.8 shall occur after
the date of this Agreement), the Market Price shall nevertheless be
fixed at $20 (or appropriately adjusted from $20 in the event that any
anti-dilution
event as set forth in Section 1.8 shall occur after the date of this
Agreement).
2. Attached hereto as Exhibit A is the list of Shareholders referred to
in the preambles to the Merger Agreement, which Exhibit A supersedes Exhibit A
attached to the Merger Agreement on the date of its execution.
3. Except as hereby amended, the Merger Agreement shall remain in full
force and effect in accordance with its terms.
If the foregoing correctly sets forth your understanding of our
agreement, kindly so indicate by executing this letter in the place provided for
your signature.
Very truly yours,
GST TELECOMMUNICATIONS, INC.
By:/s/ Xxxxxxxx X. Xxxxxx
----------------------
Xxxxxxxx X. Xxxxxx,
Senior Vice President
GST NEWCO OF TEXAS, INC.
By:/s/ Xxxxxxxx X. Xxxxxx
----------------------
Xxxxxxxx X. Xxxxxx,
Vice President
ACKNOWLEDGED AND AGREED:
TOTALNET COMMUNICATIONS INC.
By: /s/ Xxxxxx X.Xxxxxxxx
----------------------
Xxxxxx X. Xxxxxxxx
President (title)
-2-
REVISED EXHIBIT A
-----------------
TotalNet Communications
Shareholders
NAME ADDRESS SHARES TAX ID#
Xxxxxx Xxxxx Xxxxxx Xxxxx 53470 ###-##-####
00 Xxxxxx Xxxx
Xxxxxxx, Xxxxx
00000
Xxxxxx Xxxxxxx Xxxxxx Xxxxxxx 00000 ###-##-####
0000 Xxxx
Xxxxxxx, Xxxxx
00000
Xxxx X. Xxxxxx XX Xxxx X. Xxxxxx XX 00000 ###-##-####
0000 Xxxxxxxxxxx
Xxxxxxx, Xxxxx
00000
Xxxxxx Xxxxxxx Xxxxxx Xxxxxxx 29134 ###-##-####
00 Xxxxx Xxxxx
Xxxxxx Xxxx #00
Xxxxxxx, Xxxxx
00000
Xxxxxx Xxxxxxxx Xxxxxx Xxxxxxxx 00000 ###-##-####
0000 Xxxx Xxx Xxxx.
Xxxxx 000
Xxxxxxx, Xxxxx
00000
Xxxxx X. Xxxxx Xxxxx X. Xxxxx 14396 ###-##-####
c/o Baker Xxxxxx
0000 Xxxxx Xxxx
Xxxxx 0000
Xxxxxxx, Xxxxx
00000
Xxxxxx X. Xxxxxx X. 00000 ###-##-####
Xxxxxxxxxx Xxxxxxxxxx
0 Xxxxxxxx Xxxxx
Xxxxx 0000
Xxxxxxx, Xxxxx
00000
Xxxxxxxx Xxxxx Xxxxxxxx Xxxxx 10301 ###-##-####
c/o Xxxxxx Xxxxxxx
000 Xxxx Xxx Xxxx.
Xxxxx 0000
Xxxxxxx, Xxxxx
00000
NAME ADDRESS SHARES TAX ID#
Xxxx X. Xxxxx Xxxx X. Xxxxx 10235 ###-##-####
00 Xxxxx Xxxxxx
Xxxx
Xxxxxxx, Xxxxx
00000
Xxxxxxx X. Xxxxx Xxxxxxx X. Xxxxx 8259 ###-##-####
c/o Kelly
Consulting Group
0000 Xxxxxx Xxxxxx
Xxxxx 000
Xxxxx, Xxxxxxx
00000
Xxxxxxxx X. Xxxxxxxx X. Xxxxxx 7679 ###-##-####
Tilney c/o Merrill Xxxxx
0000 Xxxxxxxx
Xxxxx 0000
Xxxxxxx, Xxxxx
00000
Xxxxx Xxxxxxxx Xxxxx Xxxxxxxx 3589 ###-##-####
0000 Xxxx Xxx Xxxx.
Xxxxx 000
Xxxxxxx, Xxxxx
00000
Summit Capital Summit Capital 2441 00-0000000
Eight Xxxxxxxx
Xxxxx
Xxxxx 000
Xxxxxxx, Xxxxx
00000
Xxxxxxx Xxxxxxxx Xxxxxxx Xxxxxxxx 831 ###-##-####
0000 Xxxx Xxx Xxxx.
Xxxxx 000
Xxxxxxx, Xxxxx
00000
Xxx Xxxxxxx Xxx Xxxxxxx 758 ###-##-####
0000 Xxxxxxxxxxxx
Xxxxx
Xxxxxxx, Xxxxx
00000
Xxxxxx Xxxxxx Xxxxxx Xxxxxx 758 ###-##-####
0000 Xxxxxxxx
Xxxxxxx, Xxxxx
00000
-2-
NAME ADDRESS SHARES TAX ID#
Xxx X. Xxxxxxx Xxx X. Xxxxxxx 670 ###-##-####
c/o Genesis
Financial
0 Xxxxxxxx Xxxxx
Xxxxx 000
Xxxxxxx, Xxxxx
00000
Xxxxxx X. Xxxx Xxxxxx X. Xxxx 500 ###-##-####
000 Xxxxxxx
Xxxxxxx, Xxxxx
00000
Xxxxxxx X. Xxxxxx Xxxxxxx X. Xxxxxx 500 ###-##-####
0000 X. Xxxxxxxxx
#000
Xxxxxxx, Xxxxx
00000
Xxxx X. Xxxxxxxxx Xxxx X. Xxxxxxxxx 500 ###-##-####
000 Xxxxxxxx
Xxxxxxx, Xxxxx
00000
Xxxxxxx X. Xxxxxx Xxxxxxx X. Xxxxxx 000 ###-##-####
0000 Xxxxxxxxx #000
Xxxxxxx, Xxxxx
00000
Xxxxxx Xxxxxxxx Xxxxxx Xxxxxxxx 200 ###-##-####
00000 Xxxxxxxxxx
Xxxxx
Xxxxxxx, Xxxxx
00000
Total Shares 234733
-3-
