FIRST AMENDMENT TO REGISTRATION RIGHTS AGREEMENT
THIS FIRST AMENDMENT TO REGISTRATION RIGHTS AGREEMENT (this "Agreement"),
is made and entered into as of August 3, 1998, by and among: (i) FlashNet
Communications, Inc., a Texas corporation (the "Company"); (ii) Apogee Fund LP,
a Delaware limited partnership ("Apogee"); (iii) Xxxxxx X. Xxxxxx ("Xxxxxx");
(iv) ISP Investors, L.P., a Texas limited partnership ("ISP"); (v) Xxxxx X.
Xxxxxxx ("Kleberg"); (vi) J. Xxxxxx Xxxx, Xx. ("Xxxx"); (vii) Xxxx X. Xxxxxxxx
("Xxxxxxxx"); (viii) Fourteen Hill Capital, LP, a Delaware limited partnership
("FHC"); (ix) Applied Telecommunications Technologies, Inc., a Delaware
corporation ("ATTI"); (x) Xxxx Xxxxxx ("Xxxxxx"); (xi) UD Xxxxx Xxxxxxx XXX
("Xxxxxxx"); (xii) Xxxxx Xxxxxxx ("Xxxxxxx"); (xiii) Xxxxxxx Xxxxxx ("Squali");
(xiv) Xxxxxxx X. Xxxxxx ("Xxxxxx"); (xv) Xxxxxx X. Xxxxxxx Insurance Trust, U/A
6/28/91, Xxxxx X. Xxxxxxx, Xxxxxx X. Xxxxxxx and Xxxxxxx X. Xxxxxxx, Trustees
("Xxxxxxx Trust"); (xvi) Xxxxx X. Xxxxxxx ("Xxxxxxx"); (xvii) Xxxxx X. Xxxxxxxx
("Klepetko"); and (xviii) Q Ventures, L.P., a Texas limited partnership ("Q
Ventures").
W I T N E S S E T H:
WHEREAS, the Company, Apogee, Xxxxxx, ISP, Kleberg, King, Xxxxxxxx and FHC
(Apogee, Xxxxxx, ISP, Kleberg, King, Xxxxxxxx and FHC being collectively
referred to hereinafter as the "First Round Buyers") entered into that certain
Stock Purchase Agreement, dated as of May 7, 1998 (the "Purchase Agreement"),
pursuant to which the First Round Buyers purchased an aggregate of 749,587
shares (the "First Round Shares") of the Series A Convertible Preferred Stock,
$1.00 par value per share, of the Company ("Series A Preferred"); and
WHEREAS, the Company and the First Round Buyers entered into that certain
Registration Rights Agreement, dated as of May 7, 1998 (the "Registration
Agreement"); and
WHEREAS, simultaneously with the execution of this Agreement, the Company,
the First Round Buyers, ATTI, Castro, Manning, Griffin, Squali, Wilkes, Xxxxxxx
Trust, Xxxxxxx, Klepetko and Q Ventures (ATTI, Castro, FHC, ISP, Manning,
Griffin, Squali, Wilkes, Xxxxxxx Trust, Jenkins, Klepetko, Kleberg, King,
Xxxxxxxx and Q Ventures being collectively referred to herein as the "Second
Round Buyers") have entered into that certain First Amendment to Stock Purchase
Agreement and, pursuant to the Purchase Agreement, as amended, the Company has
issued and sold to the Second Round Buyers, and the Second Round Buyers have
purchased from the Company, an aggregate of 614,498 shares (the "Second Round
Shares") of the Series A Preferred; and
WHEREAS, the parties hereto desire that the Second Round Buyers become
parties to the Registration Agreement;
NOW, THEREFORE, in consideration of the premises and the mutual covenants
herein contained, the parties hereby agrees as follows:
SECTION 1
AMENDMENTS TO REGISTRATION AGREEMENT
1.01 DEFINITION OF INVESTORS. The Registration Agreement is hereby
amended such that the defined terms "Investor" and "Investors" in the
Registration Agreement shall in all cases include the Second Round Buyers, and
the Second Round Buyers, by their execution of this Agreement, shall: (i) be
deemed to have executed and delivered the Registration Agreement; and (ii) have
all the rights, benefits and obligations of the Registration Agreement as if
they were original signatories thereof.
1.02 NOTICES. The Registration Agreement is hereby amended by
deleting Section 7 thereof in its entirety and substituting the following in its
place:
7. NOTICES. ALL NOTICES, REQUESTS, DEMANDS, AND OTHER
COMMUNICATIONS REQUIRED OR PERMITTED TO BE GIVEN OR MADE HEREUNDER BY
ANY PARTY HERETO SHALL BE IN WRITING AND SHALL BE DEEMED TO HAVE BEEN
DULY GIVEN OR MADE IF (i) DELIVERED PERSONALLY, (ii) TRANSMITTED BY
FIRST CLASS REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, RETURN
RECEIPT REQUESTED, (iii) SENT BY PREPAID OVERNIGHT COURIER SERVICE, OR
(iv) SENT BY TELECOPY OR FACSIMILE TRANSMISSION, ANSWER BACK
REQUESTED, TO THE PARTIES AT THE FOLLOWING ADDRESSES (OR AT SUCH OTHER
ADDRESSES AS SHALL BE SPECIFIED BY THE PARTIES BY LIKE NOTICE):
IF TO INVESTORS:
APOGEE FUND LP
000 XXXX XXXXXX, XXXXX 0000
XXXX XXXXX, XX 00000
ATTENTION: XXXXXX X. XXXXXX
TELEFAX: 817-335-1822
XXXXXX X. XXXXXX
000 XXXX XXXXXX, XXXXX 0000
XXXX XXXXX, XX 00000
TELEFAX: 817-335-1822
ISP INVESTORS, L.P.
000 XXXX XXXXXX, XXXXX 0000
XXXX XXXXX, XX 00000
ATTENTION: XXXX XXXXXXXXXX
TELEFAX: 000-000-0000
XXXXX X. XXXXXXX
000 XXXXXXXX XXXXXX, XXXXX 0000
XXXX XXXXX, XX 00000
TELEFAX: 000-000-0000
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FIRST AMENDMENT TO REGISTRATION RIGHTS AGREEMENT PAGE 2
J. XXXXXX XXXX, XX.
000 XXXXXXXX XXXXXX, XXXXX 0000
XXXX XXXXX, XX 00000
TELEFAX: 000-000-0000
XXXX X. XXXXXXXX
000 XXXXXXXX XXXXXX, XXXXX 0000
XXXX XXXXX, XX 00000
TELEFAX: 000-000-0000
FOURTEEN HILL CAPITAL, LP
0000 XXXXXXXXXX XXXXXX, XXXXX 000
XXX XXXXXXXXX, XX 00000
ATTENTION: XXXXX RODSKOG
TELEFAX: 000-000-0000
APPLIED TELECOMMUNICATIONS TECHNOLOGIES, INC.
00 XXXXXXX XXXXXX
XXXXXXXXX, XXXXXXXXXXXXX 00000
ATTN: XXXXX XXXXXXXX
TELEFAX: (000) 000-0000
XXXX XXXXXX
0000 XXXXX XXXXXX XXXXXXXXX
XXXXX 000
XXXXX XXXXXX, XXXXXXXXXX 00000
TELEFAX: (000) 000-0000
UD XXXXX XXXXXXX XXX
000 XXXX 00XX XXXXXX, XXX. 0X
XXX XXXX, XXX XXXX 00000
TELEFAX: (000) 000-0000
XXXXX XXXXXXX
000 XXX XXXXX XXXXXX
XXXXXX, XXX XXXXXX 00000
TELEFAX: (000) 000-0000
XXXXXXX XXXXXX
000 XXXXXXX XXXXX, XXX. 0X
XXXXXXXX, XXX XXXX 00000
TELEFAX: (000) 000-0000
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FIRST AMENDMENT TO REGISTRATION RIGHTS AGREEMENT PAGE 3
XXXXXXX X. XXXXXX
00 XXXXXX XXXX
XXXXXXXXX, XXX XXXX 00000
TELEFAX: (000) 000-0000
XXXXXX X. XXXXXXX INSURANCE TRUST
U/A 6/28/91, XXXXX X. XXXXXXX, XXXXXX X.
XXXXXXX AND XXXXXXX X. XXXXXXX, TRUSTEES
000 XXXXX XXXXXX
XXXXXXXXX, XXX XXXXXX 00000-0000
TELEFAX: (000) 000-0000
XXXXX X. XXXXXXX
00 XXXXXX XXXXX
XXX XXXX, XXX XXXX 00000
TELEFAX: (000) 000-0000
XXXXX X. XXXXXXXX
00 XXXXXX XXXX
XXXXXXXXXX, XXX XXXX 00000
TELEFAX: (000) 000-0000
Q VENTURES, L.P.
000 XXXXXXXX XXXXXX, XXXXX 0000
XXXX XXXXX, XXXXX 00000
TELEFAX: (000) 000-0000
IF TO THE COMPANY:
FLASHNET COMMUNICATIONS, INC.
0000 X. XXXXXX XXXX XXXX.
XXXX XXXXX, XX 00000
ATTENTION: XXXXX XXXXXX, PRESIDENT
TELEFAX: 000-000-0000
SUCH NOTICES, REQUESTS, DEMANDS, AND OTHER COMMUNICATIONS SHALL BE EFFECTIVE (i)
IF DELIVERED PERSONALLY OR SENT BY COURIER SERVICE, UPON ACTUAL RECEIPT BY THE
INTENDED RECIPIENT, (ii) IF MAILED, UPON THE EARLIER OF FIVE DAYS AFTER DEPOSIT
IN THE MAIL OR THE DATE OF DELIVERY AS SHOWN BY THE RETURN RECEIPT THEREFOR, OR
(iii) IF SENT BY TELECOPY OR FACSIMILE TRANSMISSION, WHEN THE ANSWER BACK IS
RECEIVED.
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FIRST AMENDMENT TO REGISTRATION RIGHTS AGREEMENT PAGE 4
SECTION 2
MISCELLANEOUS
2.01 SUCCESSORS AND ASSIGNS. All covenants and agreements contained
in this Agreement by or on behalf of the parties hereto shall bind and inure to
the benefit of the respective successors and assigns of the parties hereto
whether so expressed or not.
2.02 LAW GOVERNING. This Agreement shall be governed by and construed
in accordance with the laws of the State of Texas.
2.03 ENTIRE AGREEMENT. This Agreement constitutes the entire
agreement of the parties with respect to the subject matter hereof and may not
be modified or amended except in accordance with Section 5 of the Registration
Agreement.
2.04 NO OTHER AMENDMENTS. Except as expressly amended hereby, the
Registration Agreement shall continue in full force and effect in accordance
with the terms and provisions thereof.
2.05 COUNTERPARTS. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.
THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK.
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FIRST AMENDMENT TO REGISTRATION RIGHTS AGREEMENT PAGE 5
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of the day and year first above written.
THE COMPANY:
FLASHNET COMMUNICATIONS, INC.
By: /s/ M. Xxxxx Xxxxxx
----------------------------------
M. Xxxxx Xxxxxx
President
FIRST ROUND BUYERS:
APOGEE FUND LP
By: Paradigm Capital
---------------------------------,
its General Partner
By: /s/ Xxxxxx X. Xxxxxx
-------------------------------
Name: Xxxxxx X. Xxxxxx
-----------------------------
Title: President
----------------------------
/s/ Xxxxxx X. Xxxxxx
---------------------------------------
Xxxxxx X. Xxxxxx
ISP Investors, L.P.
By: Xxxxxxxxxx Capital Partners, LLC,
its General Partner
By: /s/ Xxxx Xxxxxxxxxx
-------------------------------
Name:
-----------------------------
Title:
----------------------------
/s/ Xxxxx X. Xxxxxxx
---------------------------------------
Xxxxx X. Xxxxxxx
/s/ Xxxxxx Xxxx
---------------------------------------
FARRA J. Xxxxxx Xxxx, Xx.
/s/ Xxxx X. Xxxxxxxx
---------------------------------------
Xxxx X. Xxxxxxxx
FOURTEEN HILL CAPITAL, LP
By: Fourteen Hill Management, LLC,
its General Partner
By: Point West Capital Corporation,
its General Partner
By: /s/ Xxxxx X. Rodskog
-------------------------------
Name: Xxxxx X. Rodskog
-----------------------------
Title: Senior VP
----------------------------
SECOND ROUND BUYERS:
APPLIED TELECOMMUNICATIONS
TECHNOLOGIES, INC.
By: /s/ Xxxxxx X. Xxxxxxx
------------------------------------
Name: Xxxxxx X. Xxxxxxx
----------------------------------
Title: President
---------------------------------
/s/ Xxxx X. Xxxxxx
---------------------------------------
Xxxx Xxxxxx
FOURTEEN HILL CAPITAL, LP
By: Fourteen Hill Management, LLC,
its General Partner
By: Point West Capital Corporation,
its General Partner
By: /s/ Xxxxx X. Rodskog
------------------------------------
Name: Xxxxx X. Rodskog
----------------------------------
Title: Senior V.P.
---------------------------------
XXXXX
ISP INVESTORS, L.P.
By: Xxxxxxxxxx Capital Partners, LLC,
its General Partner
By: /s/ Xxxx Xxxxxxxxxx
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
UD XXXXX XXXXXXX XXX
By: /s/ Xxxxx Xxxxxxx
----------------------------------
Xxxxx (Xxxxxxx) Xxxxxx
/s/ Xxxxx Xxxxxxx
---------------------------------------
Xxxxx Xxxxxxx
/s/ Xxxxxxx Xxxxxx
---------------------------------------
Xxxxxxx Xxxxxx
/s/ Xxxxxxx X. Xxxxxx
---------------------------------------
Xxxxxxx X. Xxxxxx
XXXXXX X. XXXXXXX INSURANCE TRUST, U/A
6/28/91
By: /s/ Xxxxx X. Xxxxxxx, Trustee
-----------------------------
Xxxxx X. Xxxxxxx, Trustee
/s/ Xxxxx X. Xxxxxxx
---------------------------------------
Xxxxx X. Xxxxxxx
/s/ Xxxxx X. Xxxxxxxx
---------------------------------------
Xxxxx X. Xxxxxxxx
/s/ Xxxxx X. Xxxxxxx
---------------------------------------
Xxxxx X. Xxxxxxx
XXXXX
/s/ Xxxxxx Xxxx
---------------------------------------
J. Xxxxxx Xxxx, Xx.
/s/ Xxxx X. Xxxxxxxx
---------------------------------------
Xxxx X. Xxxxxxxx
Q VENTURES, L.P.
By: Acme Widget, L.P.,
its General Partner
By: Scepter Holdings, Inc.,
its General Partner
By: /s/ Xxxxxx XxXxxxxxx
------------------------------------
Name: Xxxxxx XxXxxxxxx
----------------------------------
Title: Vice President
---------------------------------