SUBSEQUENT CLOSING PURCHASE AGREEMENT
(FRIENDS AND FAMILY)
THIS SUBSEQUENT CLOSING PURCHASE AGREEMENT is made as of December 23, 1997
by and between Rhythms NetConnections Inc., a Delaware corporation (the
"Company") and the investors listed on SCHEDULE A hereto each of which is
referred to as an "Investor."
RECITALS
A. The Company and certain investors are parties to that certain
Series A Preferred Stock Purchase Agreement dated July 3, 1997 (the "Purchase
Agreement") pursuant to which shares of Series A Preferred Stock were allocated
to the "Friends and Family" investors approved by the Board of Directors.
B. The Company has approved the Investors for such allocation and
desires to have the Investors purchase 210,000 shares of Series A Preferred
Stock, and the Investors desire to make such investment.
THE PARTIES HEREBY AGREE AS FOLLOWS:
1. SALE AND ISSUANCE OF SERIES A PREFERRED STOCK. Each Investor
agrees, severally, to purchase from the Company, and the Company agrees to sell
and issue to each Investor that the number of shares of Series A Preferred Stock
and in the aggregate principal amounts as set forth opposite each Investor's
name on SCHEDULE A hereto at the purchase price set forth thereon.
2. SUBSEQUENT CLOSING. Such purchase and sale shall take place on
December 23, 1997 at 10:00 a.m., at the offices of Xxxxxxx, Xxxxxxx & Xxxxxxxx
LLP, 000 Xxxx "X" Xxxxxx, Xxxxx 0000, Xxx Xxxxx, Xxxxxxxxxx, or at such time and
place as the Company and a majority in interest of the Investors agree (the
"Subsequent Closing"). At the Subsequent Closing, the Company will deliver to
each Investor a certificate representing the Series A Preferred Stock which such
Investor is purchasing. At the Subsequent Closing, each Investor will deliver
to the Company payment of the purchase price as set forth on SCHEDULE A. Such
purchase shall be payable by Investor either by delivery to Company by Investor
of a check in the amount of the purchase price payable to the Company's order or
by wire transfer of funds in such amount to the Company's designated bank
account.
3. COMPANY REPRESENTATIONS. Except as set forth on the Schedule of
Exceptions, which exceptions shall be deemed to be representations and
warranties as if made hereunder, as of the Subsequent Closing Date the Company
makes the representations and warranties to each Investor set forth in Section 2
of the Purchase Agreement.
4. INVESTOR REPRESENTATIONS. As of the Subsequent Closing Date,
each Investor makes the representations and warranties to the Company set forth
in Section 3 of the Purchase Agreement, which are hereby incorporated by
reference.
5. RIGHTS OF SHARES. This Subsequent Closing shall be deemed to
have been made under the Purchase Agreement, and the shares of Series A
Preferred Stock purchased hereunder shall receive the same rights and be subject
to the same obligations under the Purchase Agreement and that certain Investors'
Rights Agreement dated July 3, 1997, as the shares of the Series A Preferred
Stock purchased under the Purchase Agreement, except as expressly set forth in
such agreements.
6. REPRESENTATION. By executing this Agreement, each Investor
acknowledges and agrees that Xxxxxxx, Phleger & Xxxxxxxx LLP represents the
Company solely and that such Investor has had an opportunity to consult with its
own attorney in connection with this Agreement.
7. MISCELLANEOUS. Unless otherwise defined herein, capitalized
terms have the meaning ascribed to them in the Purchase Agreement. 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.
[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]
-2-
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
first above written.
RHYTHMS NETCONNECTIONS INC., a Delaware
corporation
By: /s/ Xxxxxxxxx X. Xxxxx
----------------------------------------------
Xxxxxxxxx Xxxxx, President
Address: 0000 Xxxxx Xxxxxx Xxxxxxx
Xxxxxxxxx, Xxxxxxxx 00000-0000
INVESTORS:
XXXXXXXXXX & XXXXX
By: /s/ Xxxx Xxxxxxxxxx
----------------------------------------------
Its: Partner
---------------------------------------------
Address: 0000 X Xxxxxx, X.X., Xxxxx 000
Xxxxxxxxxx, X.X. 00000
/s/ Xxxxxx Xxxxxxx
--------------------------------------------------
Xxxxxx Xxxxxxx
Address: 000 Xxxxxxxx Xxxxx, Xxx. 000
Xxxxxxxxx, XX 00000
/s/ Xxxx Portugal
--------------------------------------------------
Xxxx Portugal
Address: 00 Xxxx 00xx Xxxxxx
Xxx Xxxx, XX 00000
[SIGNATURE PAGE TO SUBSEQUENT CLOSING PURCHASE AGREEMENT]
/s/ Xxxx X. Xxxx
--------------------------------------------------
Xxxx X. Xxxx
Address: c/o Xxxxxxx Xxxxxx
0000 Xxxx Xxxx Xxxx
Xxxx. 0, Xxxxx 000
Xxxxx Xxxx, Xxxxxxxxxx 00000
/s/ Xxxx X. Xxxxx
--------------------------------------------------
Xxxx X. Xxxxx
Address: c/o Xxxxxxx Xxxxxx
0000 Xxxx Xxxx Xxxx
Xxxx. 0, Xxxxx 000
Xxxxx Xxxx, Xxxxxxxxxx 00000
/s/ Xxxxxxx X. Xxxxxx
--------------------------------------------------
Xxxxxxx X. Xxxxxx
Address: c/o Xxxxxxx Xxxxxx
0000 Xxxx Xxxx Xxxx
Xxxx. 0, Xxxxx 000
Xxxxx Xxxx, Xxxxxxxxxx 00000
/s/ Xxxxxxx X. Xxxxxxx
--------------------------------------------------
Xxxxxxx X. Xxxxxxx
Address: c/o Xxxxxxx Xxxxxx
0000 Xxxx Xxxx Xxxx
Xxxx. 0, Xxxxx 000
Xxxxx Xxxx, Xxxxxxxxxx 00000
/s/ Xxxxx Xxxx
--------------------------------------------------
Xxxxx X. Xxxx
Address: c/o Xxxxxxx Xxxxxx
0000 Xxxx Xxxx Xxxx
Xxxx. 0, Xxxxx 000
Xxxxx Xxxx, Xxxxxxxxxx 00000
[SIGNATURE PAGE TO SUBSEQUENT CLOSING PURCHASE AGREEMENT]
/s/ Xxxx X. Carmera
--------------------------------------------------
Xxxx X. Xxxxxxx
Address: c/o Xxxxxxx Xxxxxx
0000 Xxxx Xxxx Xxxx
Xxxx. 0, Xxxxx 000
Xxxxx Xxxx, Xxxxxxxxxx 00000
/s/ Xxxx Xxxxxxxxxx
--------------------------------------------------
Xxxx Xxxxxxxxxx
Address: 0000 X Xxxxxx, X.X., Xxxxx 000
Xxxxxxxxxx, X.X. 00000
XXXXXXX, XXXXXXX & XXXXXXXX LLP
By: /s/ Xxxxx X. Xxxxxxx
----------------------------------------------
Its: General Partner
---------------------------------------------
Address: Spear Street Tower
Xxx Xxxxxx Xxxxxx
Xxx Xxxxxxxxx, Xxxxxxxxxx 00000
/s/ Xxxxx X. Xxxxxxx
--------------------------------------------------
Xxxxx X. Xxxxxxx
Address: Xxxxxxx, Xxxxxxx & Xxxxxxxx LLP
000 Xxxx "X" Xxxxxx, Xxxxx 0000
Xxx Xxxxx, Xxxxxxxxxx 00000
--------------------------------------------------
Xxxx X. Xxxxxxxxx
Address: Xxxxxxx, Xxxxxxx & Xxxxxxxx LLP
000 Xxxx "X" Xxxxxx, Xxxxx 0000
Xxx Xxxxx, Xxxxxxxxxx 00000
[SIGNATURE PAGE TO SUBSEQUENT CLOSING PURCHASE AGREEMENT]
UMB AS TRUSTEE FOR XXXXXXX, PHLEGER & XXXXXXXX
RETIREMENT SAVINGS TRUST FBO XXXX X. XXXXXXXXX
By: /s/ (illegible)
----------------------------------------------
Its: Assistant Vice President
---------------------------------------------
Address: 0000 Xxxxx Xxxxxx
Xxxxxx Xxxx, XX 00000
/s/ Xxxxxx X. Xxxxxxx
--------------------------------------------------
Xxxxxx X. Xxxxxxx
Address: Xxxxxxx, Xxxxxxx & Xxxxxxxx LLP
000 Xxxx "X" Xxxxxx, Xxxxx 0000
Xxx Xxxxx, Xxxxxxxxxx 00000
[SIGNATURE PAGE TO SUBSEQUENT CLOSING PURCHASE AGREEMENT]
/s/ Xxxxx X. Xxxxxxxx
--------------------------------------------------
Xxxxx X. Xxxxxxxx
Address: c/x Xxxxxxxxxx & Xxxxx
0000 X Xxxxxx, X.X., Xxxxx 000
Xxxxxxxxxx, X.X. 00000
/s/ Xxxx X. Xxxxx
--------------------------------------------------
Xxxx X. Xxxxx
Address: c/x Xxxxxxxxxx & Xxxxx
0000 X Xxxxxx, X.X., Xxxxx 000
Xxxxxxxxxx, X.X. 00000
[SIGNATURE PAGE TO SUBSEQUENT CLOSING PURCHASE AGREEMENT]
SCHEDULE A
SUBSEQUENT FRIENDS AND FAMILY CLOSING SCHEDULE OF INVESTORS
Name Number of Shares Purchase Price
------------------------------------ --------------------- -----------------
Xxxxxxxxxx & Xxxxx Group
Xxxxx X. Xxxxxxxx 15,000 $ 15,000
Xxxx X. Xxxxx 49,167 $ 49,167
Xxxxxxx Xxxxxxxxxx 20,833 $ 20,833
Xxxxxx Xxxxxxx 10,000 $ 10,000
Xxxx Portugal 10,000 $ 10,000
Xxxxxxx Xxxxxx Group
Xxxx X. Xxxx 3,334 $ 3,334
Xxxx X. Xxxxx 3,333 $ 3,333
Xxxxxxx X. Xxxxxx 3,333 $ 3,333
Xxxxxxx X. Xxxxxxx 3,333 $ 3,333
Xxxxx X. Xxxx 3,333 $ 3,333
Xxxx X. Xxxxxxx 3,334 $ 3,334
Xxxx Xxxxxxxxxx 55,000 $ 55,000
Xxxxxxx Group
Xxxxxxx, Phleger & Xxxxxxxx LLP 7,500 $ 7,500
Xxxxx X. Xxxxxxx 7,500 $ 7,500
UMB as Trustee for Xxxxxxx, Xxxxxxx 7,500 $ 7,500
& Xxxxxxxx Retirement Savings Trust
FBO Xxxx X. Xxxxxxxxx
Xxxxxx X. Xxxxxxx 7,500 $ 7,500
TOTAL: 210,000 $210,000
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