Document:

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                                                                   EXHIBIT 10.7

THIS WARRANTS REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933 AND MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN
THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE WARRANTS
UNDER SUCH ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH
REGISTRATION IS NOT REQUIRED, OR UNLESS SOLD PURSUANT TO RULE 144 (K) OF SUCH
ACT.

                               WARRANT AGREEMENT

     This WARRANT AGREEMENT ("Agreement") is made as of ___________,1999,
                              ---------
between HOB Entertainment, Inc., a Delaware corporation (the "Company"), and
                                                              -------
________________ (together with its permitted assigns, the "Holder").
                                                            ------

                                    RECITALS
                                    --------

     WHEREAS, the Company deems it advisable to issue in consideration for the
benefits provided to the Company by Holder to issue to Holder warrants (the
"Warrants") represented and evidenced by this Agreement entitling Holder to
 --------
purchase an aggregate of ___________ shares of Common Stock of the Company,
$.0001 par value (such shares of Common Stock issuable upon exercise of the
Warrants are referred to as the "Warrant Shares"), with each such Warrant being
                                 --------------
exercisable initially for one Warrant Share, subject to adjustment and on the
terms provided for herein.

     NOW, THEREFORE, in consideration of the premises and the mutual agreements
set forth herein, the parties hereto agree as follows:

     ARTICLE 1.  Issuance And Delivery Of Warrants.
                 ---------------------------------

     Section 1.01.  Issuance of Warrants.  To be effective as of the date
                    --------------------
first written above (the "Effective Date", the Company does hereby grant to
                          --------------
Holder or its assignees (who shall be persons to whom Warrants could be
transferred under Section 5.01), Warrants to acquire up to _________ Warrant
                  ------------
Shares.

     ARTICLE 2.  Duration and Exercise of Warrants.
                 ---------------------------------

     Section 2.01.  Duration of Warrants.  Subject to Section 4.03 hereof,
                    --------------------              ------------
the Warrants represented hereby may be exercised at any time on or after the
Effective Date and shall remain exercisable until the close of business on the
tenth anniversary of the Effective Date (the "Termination Date"); provided,
                                              ----------------    --------
however, that if the Termination Date provided for herein shall fall on a
-------
Saturday, Sunday or legal holiday, then such Termination Date shall be deemed
to be the first regular business day following such Saturday, Sunday or legal
holiday.

     Section 2.02.  Terms of Exercise.  Each Warrant shall entitle the holder
                    -----------------
thereof to purchase one (1) Warrant Share upon payment of $.01 per share,
each as adjusted as provided in Article 3. Such price, as in effect from time
                                ---------
to time as provided in Article 3, is referred to as the "Exercise Price." In
                       ---------                         --------------
no event may Holder exercise any Warrant represented hereby (before or after
any adjustment or substitution pursuant to Article 3 hereof) for a fraction of
                                           ---------
a share.
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     Section 2.03.  Exercise of Warrants
                    --------------------

     (a)  All or any portion of such Warrants may be exercised by surrendering
this Agreement, together with a subscription in the form attached hereto duly
executed, accompanied by payment of the Exercise Price.  Such Agreement and
subscriptions may be surrendered at the corporate headquarters of the Company
(as set forth in Section 9.02, or as such address may be changed from time to
                 ------------
time) or, if the Company so notifies the Holder hereafter, at the office of any
transfer agent for the Common Stock appointed hereafter. The payment and
subscription materials shall be accompanied by such other instruments or
agreements duly signed by Holder as may be reasonably necessary or advisable in
order that the issuance of such Warrant Shares comply with applicable rules and
regulations under the Securities Act, any applicable state securities laws or
any requirement of any national securities exchange on which Common Stock may be
traded.

     (b)  Payment shall be made either: (1) by cash, money order, certified or
bank cashier's check drawn in United States currency and payable to the order of
the Company; (2) by wire transfer; (3) by cashless exercise pursuant to Section
                                                                        -------
2.03(c), ("Cashless Exercise") or (4) any combination of the foregoing at the
-------    -----------------
option of the Holder.

     (c)  In lieu of paying the Exercise Price in cash, the Holder may utilize a
Cashless Exercise.  A Holder is permitted to exercise Warrants pursuant to a
Cashless Exercise by directing the Company to withhold from the Warrant Shares
issuable upon such exercise a number of Warrant Shares having an aggregate Fair
Market Value (as defined herein) equal to the aggregate Exercise Price for all
Warrants exercised.

     (d)  Warrants shall be exercisable during the period provided in Section
                                                                      -------
2.01 at any time in whole or from time to time in part. As soon as practicable
----
after any of the Warrants have been so exercised, the Company shall issue and
deliver or cause to be delivered to, or upon the order of, the Holder, in such
name or names as may be directed by Holder, a certificate or certificates for
the number of full Warrant Shares to which Holder is entitled, and if the
Warrants represented by the surrendered Agreement shall not have been exercised
in full, a new Warrant Agreement, for the remaining number of Warrants which
shall not have been exercised (however, to the extent such a new Warrant
Agreement is issued for such remaining number of Warrants on the same terms and
conditions as set forth herein, such replacement Warrant Agreement may be
unilaterally executed and delivered by the Company, without need for Holder's
signature).  In connection with such exercise, the Company shall use its best
efforts to cause its transfer agent to deliver the shares, as provided herein,
on a timely basis in order to permit settlement of a normal brokerage
transaction within three business days of the exercise.

     Section 2.04.  Common Stock Issued upon Exercise of Warrants.
                    ---------------------------------------------

     (a)  All Warrant Shares shall be duly authorized, validly issued, fully
paid and nonassessable.  The Company shall pay all documentary stamp taxes
attributable to the initial issuance of Warrant Shares.  The Company shall not
be required, however, to pay any tax imposed in connection with any transfer
involved in the issue of the Warrant Shares in a name other than that of the
Holder.  In such case, the Company shall not be required to issue any
certificate for Warrant Shares until the person or persons requesting the same
shall have paid to the Company the amount of any such tax or shall have
established to the Company's satisfaction that the tax has been paid or that no
tax is due.  The Company shall at all times reserve and keep available such
number of shares of its authorized but unissued Common Stock as shall from time
to time be sufficient to permit the exercise of all outstanding Warrants
represented hereby.  If at any time the number of authorized but unissued shares
of Common Stock shall

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not be sufficient for such purpose, the Company shall take such action as may
reasonably be necessary to increase its authorized but unissued Common Stock to
such number of shares as shall be sufficient for such purpose. The Company will
not take any actions or enter into any agreements which will frustrate or
interfere with the timely exercise and performance under this Warrant.

     (b)  Each stock certificate shall carry such appropriate legend, and such
written instructions shall be given to the Company's transfer agent, as may be
reasonably necessary or advisable to satisfy the requirements of the Securities
Act of 1933, as amended (the "Securities Act") or any state securities laws.
                              --------------
Neither Holder nor its legal representative shall be or have any of the rights
or privileges of a stockholder of the Company in respect to any of the Warrant
Shares unless and until certificates representing such shares shall have been
issued and delivered to Holder.

     ARTICLE 3.  Anti-Dilution Provisions.
                 ------------------------

     Section 3.01.  Adjustment of Exercise Price and Number of Warrant Shares.
                    ---------------------------------------------------------
The Exercise Price shall be subject to adjustment from time to time as
provided in this Article 3.  Upon each adjustment of the Exercise Price, the
                 ---------
Holder shall be entitled to purchase pursuant hereto, at the Exercise Price
resulting from such adjustment, the number of Warrant Shares obtained by
multiplying the Exercise Price in effect immediately prior to such adjustment by
the number of Warrant Shares purchasable pursuant to the aggregate number of
unexercised Warrants represented by this Agreement immediately prior to such
adjustment and dividing the product thereof by the Exercise Price resulting from
such adjustment.

     Section 3.02.  Adjustment in the Event of Certain Issuances.
                    --------------------------------------------

     (a)  Upon Issuance of Common Stock for Less Than Fair Market Value.  If the
          -------------------------------------------------------------
Company shall issue or sell, or be deemed to issue and sell in accordance with
Section 3.02(c) hereof, after the date hereof, shares of its Common Stock
---------------
without consideration or at a price per share less than the Fair Market Value
(as determined in accordance with Section 3.02(c) hereof) of the Common Stock on
                                  ---------------
the date of such issuance or sale, then in each such case, the Exercise Price in
effect immediately prior to such issuance or sale shall be lowered so as to be
equal to an amount determined by multiplying the Exercise Price in effect
immediately prior to such issuance or sale by a fraction, the numerator of which
shall be the sum of the number of shares of Common Stock outstanding (or deemed
outstanding in accordance with Section 3.02(d)(i) hereof) immediately prior to
                               ------------------
such issuance or sale and the number of shares of Common Stock which the
aggregate consideration received (or deemed received in accordance with Section
                                                                        -------
3.02(c) hereof) by the Company for such issuance or sale would purchase at such
-------
Fair Market Value per share of Common Stock, and the denominator of which shall
be the number of shares of Common Stock outstanding (or deemed outstanding in
accordance with Section 3.02(c) hereof) immediately after such issuance or sale.
                ---------------
Such adjustment shall be made successively whenever the Company issues shares of
its Common Stock without consideration or at a price per share less than the
Fair Market Value.  If both this Section and Section 3.02(b) are applicable to
                                 ---------------------------
an issuance, then the Section which provides the adjustment to the Exercise
Price most favorable to the Holder shall apply and be applicable to such
issuance.

     (b)  Upon Issuance of Common Stock for Less Than Designated Value.
          ------------------------------------------------------------
Subject to the last sentence of Section 3.02(a), if the Company shall issue or
sell, or be deemed to issue and sell in accordance with Section 3.02(c) hereof,
                                                        ---------------
after the hereof, shares of its Common Stock without consideration or at a
price per share less than $1.62 per share, as equitably adjusted for any stock
split, stock dividend, combination, reclassification or like event affecting the
Common Stock after the date

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hereof (the "Designated Value") of the Common Stock on the date of such issuance
             ----------------
or sale, then in each such case, the Exercise Price in effect immediately prior
to such issuance or sale shall be lowered so as to be equal to an amount
determined by multiplying the Exercise Price in effect immediately prior to such
issuance or sale by a fraction, the numerator of which shall be the sum of the
number of shares of Common Stock outstanding (or deemed outstanding in
accordance with Section 3.02(c) hereof) immediately prior to such issuance or
                ---------------
sale and the number of shares of Common Stock which the aggregate consideration
received (or deemed received in accordance with Section 3.02(c) hereof) by the
                                                ---------------
Company for such issuance or sale would purchase at such Designated Value per
share of Common Stock, and the denominator of which shall be the number of
shares of Common Stock outstanding (or deemed outstanding in accordance with
Section 3.02(c) hereof) immediately after such issuance or sale. Such adjustment
---------------
shall be made successively whenever the Company issues shares of its Common
Stock without consideration or at a price per share less than the Designated
Value.

     (c)  Upon Issuance of Warrants, Options and Rights to Purchase Common
          -----------------------------------------------------------------
Stock.
-----
          (i)  For the purpose of this Section 3.02, the issuance of any
                                       ------------
     warrants, options, subscriptions or purchase rights with respect to shares
     of Common Stock and the issuance of any securities convertible into,
     exercisable for or exchangeable for shares of Common Stock (or the issuance
     of any warrants, options or any rights with respect to such convertible or
     exchangeable securities) shall be deemed an issuance of such Common Stock
     at such time if the Net Consideration Per Share (as hereinafter defined)
     which may be received by the Company for such Common Stock shall be less
     than the Fair Market Value or the Designated Value, as the case may be, of
     the Common Stock on the date of such issuance.  Any obligation, agreement
     or undertaking to issue warrants, options, subscriptions or purchase rights
     at any time in the future shall be deemed to be an issuance at the time
     such obligation, agreement or undertaking is made or arises.  No adjustment
     of the Exercise Price shall be made under this Section 3.02 upon the
                                                    ------------
     issuance or deemed issuance of any shares of Common Stock which are issued
     pursuant to the exercise of any warrants, options, subscriptions or
     purchase rights or pursuant to the exercise of any conversion or exchange
     rights with respect to any convertible securities if an adjustment shall
     previously have been made upon the issuance of such warrants, options or
     subscriptions or purchase rights or upon the issuance of such convertible
     securities (or upon the issuance of such warrants, options or any rights
     therefor), as the case may be, as above provided.

          (ii) Should the Net Consideration Per Share of any such warrants,
     options, subscriptions or purchase rights or convertible securities be
     decreased or increased from time to time then, upon the effectiveness of
     each such change, the Exercise Price shall be adjusted to such Exercise
     Price as would have resulted (1) had the adjustments made upon the issuance
     of such warrants, options, rights or convertible securities been made upon
     the basis of the actual Net Consideration Per Share of such securities, and
     (2) had the adjustments made to the Exercise Price since the date of
     issuance of such securities been made to the Exercise Price as adjusted
     pursuant to (1) above.  Any adjustment of the Exercise Price with respect
     to this Section 3.02 which relates to warrants, options, subscriptions or
             ------------
     purchase rights with respect to shares of Common Stock shall be disregarded
     if, as, and when all of such warrants, options, subscriptions or purchase
     rights expire or are canceled without being exercised, so that the Exercise
     Price effective immediately upon such cancellation or expiration shall be
     equal to the Exercise Price which would have been in effect at the time of
     such cancellation or expiration had the expired or canceled warrants,
     options, subscriptions or purchase rights not been issued.

     (d) Certain Definitions.  For purposes of this Section 3.02, the following
         -------------------                        ------------
terms shall have

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the following meanings:

     (i)  The "Fair Market Value" of a share of Common Stock as of a
               -----------------
particular date shall mean:

          (x)  If the Company is subject to the reporting obligations under
     the Securities Exchange Act of 1934, as amended (the "Exchange Act"),
                                                           ------------
     pursuant to Section 12 or Section 15(d) of such Exchange Act, or if a
     registration under the Securities Act of 1933, as amended, covering an
     initial underwritten public offering of such capital stock of the Company
     has been declared effective by the U.S. Securities and Exchange Commission
     and consummated, then the "Fair Market Value" of the Common Stock shall be
     deemed to be the average of the reported last sale price (or reported
     closing bid price, if last sale data is not reported for such security) for
     the five consecutive business day period ending with the last business day
     immediately prior to the date such determination is made as reported by the
     principal national securities exchange or automated quotation system on
     which such security is then traded (as measured by average daily volume of
     trading in such security during such five business day period); and

          (y) In all other cases, the "Fair Market Value" of the Common
     Stock shall be determined in good faith by the Board of Directors of the
     Company upon review of the relevant factors; provided, however, that if the
     date of such determination falls within five business days prior to the
     effective date of a registration statement for an initial public offering
     of Common Stock, the Fair Market Value of a share of Common Stock included
     in such registration statement will be deemed to be the per share public
     offering price, less the aggregate underwriting discount, provided for in
     such registration statement; and provided further, however, that if, within
     60 days after receipt of the first notice of the issuance of any security
     in one or a series of related transactions in which the aggregate
     consideration received (or deemed received in accordance with Section
     3.02(c)) exceeds $1.0 million and the holders of 30% or more of the
     Warrants issued pursuant to the Stock Purchase Agreement, dated as of July
     __, 1999, notify the Company of their reasonable belief that the "Fair
     Market Value" of the Common Stock as so determined by the Board of
     Directors above is less than the actual fair market value of the Common
     Stock, then the "Fair Market Value" of the Common Stock shall be determined
     by a nationally recognized investment banking firm selected by the Company.

     (ii) The "Net Consideration Per Share" which may be received by the
               ---------------------------
Company shall mean the amount equal to the total amount of consideration, if
any, received by the Company for the issuance of such, warrants, options,
subscriptions or other purchase rights or convertible or exchangeable securities
(taking into consideration appropriate allocations of consideration if
securities are issued in units or are otherwise issued with other securities or
property), plus the minimum amount of consideration, if any, payable to the
Company upon exercise or conversion thereof, divided by the maximum aggregate
number of shares of Common Stock that would be issued if all such warrants,
options, subscriptions or other purchase rights or convertible or exchangeable
securities were exercised, exchanged or converted.

     (e) Consideration Other than Cash.  For purposes of this Section 3.02, if a
         -----------------------------                        ------------
part or all of the consideration received by the Company in connection with the
issuance of shares of the Common Stock

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or the issuance of any of the securities described in this Section 3.02 consists
                                                           ------------
of property other than cash, such consideration shall be deemed to have a fair
market value as is reasonably determined in good faith by the Board of Directors
of the Company.

     (f)  Events Not Requiring an Adjustment.  Notwithstanding the provisions
          ----------------------------------
of this Section 3.02, no adjustment of the Exercise Price or the number of
        ------------
Warrant Shares shall be required with respect to any issuances to which

Section 3.03 or Section 3.04 are applicable and with respect to the items
------------    ------------
specified in Article Four, Section 5(a)(iv)(A)(4) of the Second Amended and
Restated Certificate of Incorporation the Company as in effect on the date
hereof.

     Section 3.03.  Stock Dividends.  If the Company shall declare a dividend
                    ---------------
or any other distribution upon any capital stock which is payable in shares of
Subject to Section 4.03 hereof, the Common Stock, the Exercise Price and
Designated Value shall be reduced to the quotient obtained by dividing (i) the
number of shares of Common Stock outstanding immediately prior to such
declaration multiplied by the then effective Exercise Price or Designated Value,
respectively, by (ii) the total number of shares of Common Stock outstanding
immediately after such declaration.

     Section 3.04.  Stock Splits and Reverse Stock Splits.  If the Company shall
                    -------------------------------------
subdivide its outstanding shares of Common Stock into a greater number of
shares, the Exercise Price and Designated Value shall be proportionately reduced
and the number of Warrant Shares issuable upon exercise of the Warrants
represented hereby shall be proportionately increased. If the Company shall
combine the outstanding shares of Common Stock into a smaller number of shares,
the Exercise Price and Designated Value shall be proportionately increased and
the number of Warrant Shares issuable upon exercise of the Warrants represented
hereby shall be proportionately decreased.

     Section 3.05.  Notice of Change in Shares Issuable, etc.  Whenever the
                    -----------------------------------------
securities issuable or deliverable upon exercise of the Warrants is changed
pursuant to this Article 3, the Company shall mail a notice of such change to
                 ---------
Holder at the address registered with the Company. Failure to file such
statement or to publish such notice, or any defect in such statement or notice,
shall not affect the legality or validity of any such change. Such notice shall
be accompanied by a certificate executed by the Company's chief financial
officer, setting forth in reasonable detail the facts requiring the change and
specifying the effective date of such change and the number or amount of, and
describing the shares or other securities issuable or deliverable in exchange
for, the Warrants as so changed.

     Section 3.06.  Limitations on Adjustment.  Except in the case of a reverse
                    -------------------------
stock split or similar recapitalizing transaction, the Exercise Price shall not
be increased as a result of any adjustments set forth in this Article 3 above
                                                              ---------
the Exercise Price which would be in effect had no adjustment ever been made to
the Exercise Price in accordance with the terms of this Warrant with respect to
the Common Stock, options or convertible securities for which the adjustment in
question is being made.

     Section 3.07.  Good Faith.  If any event occurs as to which in the
                    ----------
reasonable opinion of the Board of Directors of the Company, in good faith, the
other provisions of this Article 3 are not strictly applicable but the lack of
any adjustment in the Warrant Shares would not in the opinion of the Board of
Directors of the Corporation fairly protect the exercise rights of the holders
of the Warrants, in accordance with the basic intent and principles of such
provisions, then the Board of Directors of the Corporation shall appoint a firm
of independent certified public accountants (which may be the regular auditors
of the Company) of recognized national standing, which shall give their opinion
upon the adjustment, if any, to the Exercise Price and/or Warrant Shares, as the
case may be, on a basis consistent with the basic intent and principles of this
Article 3, necessary to preserve, without dilution, the exercise

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rights of all the registered holders of the Warrants in accordance with this
Agreement.

     To be included in initial Senior Preferred Stock Warrants Only:

     [Section 3.08.  Special Adjustment Related to Preemptive Rights Offering.
                     --------------------------------------------------------
The number of Warrant Shares shall be adjusted (the "Special Financing
                                                     -----------------
Adjustment") upon the completion by the Company of the Preemptive Rights
----------
Offering (the "Preemptive Offering") provided for in Section 8 of the Amended
               -------------------
and Restated Stockholders Agreement, dated as of  _________, 1999,  and related
to the Stock Purchase Agreement, dated as of _________, 1999, pursuant to which
the Class D-2 Preferred Stock, 12% Senior Redeemable Preferred Stock and Senior
Convertible Preferred Stock of the Company were originally issued.  The Special
Financing Adjustment will be equal to the amount arrived at by multiplying the
number of Warrant Shares then issuable pursuant to the exercise of this Warrant
Agreement in full by the percentage dilution caused by the Preemptive Offering
(the "Adjustment Factor").  The Adjustment Factor will be equal to a fraction
      -----------------
wherein the numerator is the number of common stock equivalents issued in the
Preemptive Offering and the denominator is the number of common stock
equivalents of the Company outstanding immediately prior to the closing of the
Preemptive Offering.  The Warrant Shares represented by the Special Financing
Adjustment will be evidenced by an additional warrant agreement, substantially
identical to this Warrant Agreement (except that this Section 3.08 shall not be
included in such warrant agreement, and for purposes of the anti-dilution
adjustment provisions, such warrant agreement shall be deemed to have been
issued on the date of this Warrant Agreement).  The adjustment made by this
Section 3.08 shall be made only once, and once made and documented by delivery
of the related warrant agreement, this Section shall be extinguished.]

     ARTICLE 4.  Rights; Liquidation, Merger, etc.
                 ---------------------------------

     Section 4.01.  Subscription or Purchase Rights.  If at any time the
                    -------------------------------
Company grants, issues or Sells any options, convertible securities or rights to
purchase stock, warrants, securities or other property pro rata to the record
holders of Common Stock (the "Purchase Rights"), then the Holder of this
                              ---------------
Warrant will be entitled to acquire, upon the terms applicable to such Purchase
Rights, the aggregate Purchase Rights which such Holder could have acquired if
such Holder had held the number of Warrant Shares issuable upon complete
exercise of this Warrant immediately before the date on which a record is taken
for the grant, issuance or sale of such Purchase Rights, or, if no such record
is taken, the date as of which the record holders of Common Stock are to be
determined for the grant, issue or sale of such Purchase Rights.

     Section 4.02.  Notice to Holder.  If, at any time after the date hereof:
                    ----------------

     (a)  the Company shall authorize the distribution to all holders of Common
Stock of evidence of its indebtedness, assets (other than Common Stock (for
which adjustment is provided in Section 3.03 hereof) or cash dividends or cash
                                ------------
distributions payable out of current earnings, retained earnings or earned
surplus or dividends payable in Common Stock);

     (b)  there shall be proposed any consolidation or merger to which the
Company is to be a party and for which approval of the holders of Common Stock
is required, or the conveyance or transfer of the properties and assets of the
Company substantially as an entirety;

     (c)  there shall be proposed any capital reorganization or reclassification
(other than a subdivision or combination of shares, stock dividend,
consolidation, merger, or conveyance or transfer of

                                       7
<PAGE>

assets provided for elsewhere herein); or

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

the Company shall cause to be given to Holder at the address registered with the
Company, by first-class mail, postage prepaid, a written notice stating (i) the
date as of which the holders of record of shares of Common Stock to be entitled
to receive any such distributions are to be determined or (ii) the date on which
any consolidation, merger, conveyance, transfer, reorganization,
reclassification, dissolution, liquidation or winding up is expected to become
effective, and the date as of which it is expected that holders of record of
shares of Common Stock shall be entitled to exchange the shares for securities
or other property, if any, deliverable upon the consolidation, merger,
conveyance, transfer, reorganization, reclassification, dissolution, liquidation
or winding up.  Such notice shall be filed and mailed in the case of a notice
pursuant to clause (i) above at least 10 calendar days before the record date
specified and, in the case of a notice pursuant to clause (ii) above, at least
20 calendar days before the earlier of the dates specified.  Any notice pursuant
to clause (ii) above shall also state whether or not unexercised Warrants will
become void as provided in the last sentence of Section 4.03.
                                                ------------

     Section 4.03.  Expiration Date of Warrants or Limitations of Rights.
                    ----------------------------------------------------

From the time notice is required to be given pursuant to Section 4.02,
                                                         ------------
the Holder shall be entitled to exercise the Warrants represented hereby,
effective immediately prior to the transaction described in the notice, at the
Exercise Price then in effect.  For any transaction pursuant to Section 4.02(b)
                                                                ---------------
in which the Company is not the surviving or acquiring entity and Holder does
not exercise all of the Warrants, the Company shall use reasonable efforts to
negotiate to cause the surviving or acquiring entity to assume the obligation
represented by such Warrants so as to insure that each Holder will thereafter
have the right to acquire and receive in lieu of or addition to the shares of
Common Stock immediately theretofore acquirable and receivable upon exercise of
such Warrants, such shares of stock, securities or assets as may be issued or
payable with respect to or in exchange for the number of shares of Common Stock
immediately theretofore acquirable and receivable upon exercise of such Warrants
had such transaction not taken place.  As to any transaction specified in

Section 4.02(b) above in which the Company shall not be the surviving or
---------------
acquiring party and in which the Company is unable to negotiate the assumption
of the obligations represented by the Warrants by the acquiring or surviving
entity (and the Company has used its reasonable efforts to negotiate such
assumption), or in which the Company shall have disposed of substantially all of
its assets, or any transaction specified in Section 4.02(b), the right to
                                            ---------------
exercise the Warrants shall expire at the close of business on the later of the
dates specified in such notice as the date on which any consolidation, merger,
conveyance, transfer, reorganization, reclassification, dissolution, liquidation
or winding up is expected to become effective and the date as of which it is
expected that holders of record of shares of Common Stock shall be entitled to
exchange such shares for securities or other property, if any, deliverable upon
the consolidation, merger, conveyance, transfer, reorganization,
reclassification, dissolution, liquidation or winding up.  Any Warrant not so
exercised in such cases shall become void and all rights under this Warrant
Agreement shall cease.

     ARTICLE 5.  Transfer of Ownership of Warrants.
                 ---------------------------------

     Section 5.01.  Negotiability and Ownership.  The Warrants represented
                    ---------------------------
hereby shall not be transferable by the Holder or his permitted assigns during
their term except (a) to persons who demonstrate to the reasonable satisfaction
of the Company that they are "accredited investors" within the meaning of
Regulation D promulgated under the Securities Act and who deliver to the Company
warranties and representations substantially to the same effect as those set
forth in Section 6.02 hereof or
         ------------

                                       8
<PAGE>

otherwise reasonably appropriate to demonstrate compliance with the Securities
Act, (b) in the case of an individual, pursuant to such individual's last will
and testament or the laws of descent and distribution, or (c) to any underwriter
in connection with an underwritten public offering in which such Warrants will
be exercised by such underwriters prior to or concurrently with the sale of the
Warrant Shares to the public and, in any of the foregoing cases, only in
compliance with the Securities Act. Any attempted transfer in contravention of
this Section 5.01 shall be null and void. Any such transferee may be required to
     ------------
execute an investment letter containing representation and warranties as to his
or her investment intent, financial sophistication and ability to bear the risk
of any investment in the Warrants or the Warrant Shares, and containing
substantially similar warranties and representations to those contained in
Section 6.02 hereof before any such transfer shall be given effect. Further, the
------------
Company may condition any such transfer on the execution by the transferee of a
joinder agreement to the Company's Amended and Restated Registration Rights
Agreement in the same form as was binding against the Holder who transferred
such Warrants.

     ARTICLE 6.  Warranties and Representations.
                 ------------------------------

     Section 6.01.  Company's Representations, Warranties.  The Company
                    -------------------------------------
represents and warrants to the Registered Holder that:

     (a)  The Company has full power and authority to enter into this Agreement,
and to issue and deliver this Agreement and the Warrant Shares upon exercise of
the Warrants, and to incur and perform fully the obligations provided herein,
all of which have been duly authorized by all necessary corporate action, upon
exercise in accordance with the terms hereof, the Warrant Shares issued upon
such exercise will be validly issued, fully paid and non-assessable;

     (b)  This Agreement has been duly executed and delivered and is the valid
and binding obligation of the Company enforceable in accordance with its terms;

     (c)  The Company has obtained all necessary consents prior to the execution
and delivery of this Agreement and the performance by the Company of this
Agreement in accordance with its terms and conditions will not: (i) require the
approval or consent of any governmental or regulatory body whether federal,
state, local or foreign or the approval or consent of any other person, or (ii)
conflict with or result in any breach or violation of any of the terms and
conditions of, or constitute (with notice or lapse of time or both) a default
under any certificate of incorporation, by-law, statute, regulation, order,
judgment or decree of or applicable to the Company, or any instrument, contract
or other agreement to which the Company is a party or by or to which the Company
is bound or subject; and

     (d) There are no preemptive rights with respect to the issuance and sale of
the Warrants or the Warrant Shares which have not been waived or previously
satisfied.

     Section 6.02.  Investment Warranties and Representations.  In connection
                    -----------------------------------------
with the acquisition of the Warrants, and with the understanding that warranties
and representations of similar effect hereto may be required to be made by any
holder of the Warrants in connection with the exercise thereof, Holder hereby
makes the following representations to the Company in order that the Company may
rely on such representations in connection with the issuance and sale of the
Warrants and/or the Warrant Shares:

                                       9
<PAGE>

          (a)  Holder is at present financially able to bear the economic risks
     of an investment in the Warrants or the Warrant Shares of the Company and
     has no need for liquidity in this investment.

          (b)  Holder has received no public solicitation or advertisement and
     has attended no public seminar or meeting regarding investment in the
     Company, nor is Holder aware of any such public solicitation, advertisement
     or meeting.

          (c)  The Warrants have been, and, if the Warrants are exercised, the
     Warrant Shares will be, acquired for the account of Holder for investment
     and not with a view to resale or further distribution thereof in
     contravention of applicable law.

          (d)  Holder has no contract, undertaking, arrangement or agreement
     with any person to sell or transfer or to have any person sell for Holder
     all or any of the Warrants or Warrant Shares and is aware of and agrees to
     the restrictions on transferability of the Warrants imposed by Section 5.01
                                                                    ------------
     hereof.

          (e)  Prior to any exercise of the Warrants, Holder understands and
     agrees that it may be required to represent and provide such reasonably
     satisfactory evidence thereof as the Company may require that he is an
     "accredited investor" within the meaning of Regulation D promulgated by the
     Securities and Exchange Commission.

          (f)  Holder is knowledgeable in and experienced with respect to
     investments in general and with respect to investments of a nature similar
     to an investment in the Company. By reason of such knowledge and
     experience, Holder is capable of evaluating the merits and risks of, and
     making an informed business decision with regard to, an investment in the
     Company.

          (g)  Holder (i) received all the information that Holder deemed
     necessary to make an informed investment decision with respect to an
     investment in the Company, (ii) has had the unrestricted opportunity to
     make such investigation as Holder desired pertaining to the Company and an
     investment therein to verify the information previously furnished to
     Holder; and (iii) has had the opportunity to ask questions of the Company's
     representatives concerning the Company.

          (h)  Holder hereby consents to the placement of a legend on any
     certificate evidencing the Warrants or Warrant Shares, which legend shall
     be in form substantially as set forth at the top of this Agreement.

          (i)  Holder also consents to the placement of a "stop order" on the
     stock transfer books of the Company to enforce the restrictions set forth
     in the above-mentioned legend.    Holder further indemnifies and agrees to
     hold the Company harmless from and against all loss, liabilities,
     obligations and costs arising out of or related to the resale or
     distribution by Holder of all or any portion of the Warrants and Warrant
     Shares under such circumstances as to bring the issuance, sale or transfer
     of the Warrants and Warrant Shares within the provisions of Section 5 of
     the Securities Act unless a Registration Statement under the Securities Act
     is in effect as to the Warrants or Warrant Shares or unless an opinion of
     counsel satisfactory to the Company is delivered opining that an exemption
     from such registration requirements is available for any such sale or
     transfer.

                                       10
<PAGE>

          (j) Holder realizes that the Warrants and Warrant Shares have not been
     registered under the Securities Act by reason of a specific exemption under
     the provisions of the Securities Act which depends upon the investment
     intent of the undersigned. Therefore, the Warrants and Warrant Shares are
     "restricted securities" as that term is defined in Securities and Exchange
     Commission Rule 144 ("Rule 144"), and accordingly, must be held
                           --------
     indefinitely unless they are subsequently registered under the Securities
     Act, or an exemption from such registration is available.

          (k)  Holder realizes that Rule 144, which provides an exemption from
     registration under the Securities Act, merely permits the sale of limited
     amounts of Warrants and Warrant Shares in accordance with the terms and
     conditions set forth in Rule 144.  One such condition at present is that
     the Warrants and Warrant Shares not be sold until such time as they have
     been held for at least two (2) years from the date of purchase (one (1)
     year if the Company becomes subject to the Exchange Act).  Holder further
     understands that the availability of Rule 144 is dependent upon adequate
     current public information, with respect to the Company, being available
     and that such information is not currently available and there is no
     guarantee that such information will be available at any further time.
     Holder further understands that, except as otherwise provided in the
     Registration Rights Agreement, the Company is under no obligation to make
     such information publicly available, to supply Holder with information
     necessary to sell the Warrants or Warrant Shares under Rule 144, to
     register the Warrants and Warrant Shares under the Securities Act, or to
     otherwise comply with any exemption under the Securities Act.

     ARTICLE 7.  No Impairment.  The Company will not, by any voluntary action,
                 -------------
avoid or seek to avoid the observance or performance of any of the terms to be
observed or performed hereunder by the Company, but will at all times in good
faith assist in the carrying out of all the provisions of this Agreement and in
the taking of all such action as may be necessary or appropriate in order to
protect the rights of the Holder of this Agreement against impairment.

     ARTICLE 8.  Reports.  Upon request, the Company shall deliver to the Holder
                 -------
copies of all reports or notices distributed or made generally available to all
of the Company's stockholders, when and as such reports or notices are delivered
to the stockholders.

     ARTICLE 9.  Miscellaneous Provisions.
                 ------------------------

     Section 9.01.  Applicable Law.  This Agreement shall be governed by and
                    --------------
construed in accordance with the laws of the State of Delaware.

     Section 9.02.  Notices.  Any notice pursuant to this Agreement to be
                    -------
given to the Company or Holder shall be sufficiently given if sent by first-
class mail, postage prepaid, addressed (until another address is filed in
writing by the Holder or the Company until the Company designates a transfer
agent as the appropriate recipient of certain types of notice to it contemplated
hereby) as follows:

     If to the Company:

     HOB Entertainment, Inc.
     6255 Sunset Boulevard, 16th Floor
     Los Angeles, California 90028
     Attention: President

                                       11
<PAGE>

and to Holder at its address set out on the signature page hereto, or such other
address as may be furnished in writing to the Company from time to time
hereafter.  All such notices, requests, demands and other communication shall,
when mailed (registered or certified mail, return receipt requested, postage
prepaid), personally delivered, or telegraphed, be effective four days after
deposit in the mails, when personally delivered, or when delivered to the
telegraph company, respectively, addressed as aforesaid, unless otherwise
provided herein and, when telecopied, shall be effective upon actual receipt.

     Section 9.03.  Amendments.  The provisions of this Agreement may be amended
                    ----------
only by the written agreement of the Company and the Holder.

     Section 9.04.  Successor.  All the covenants and provisions of this
                    ---------
Agreement by or for the benefit of the Company or Holder shall bind and inure
to the benefit of their respective successors and assigns hereunder.

     Section 9.05.  Theft, Loss, Destruction.  Upon receipt by the Company
                    ------------------------
of evidence reasonably satisfactory to it (an affidavit of the Registered Holder
will be satisfactory) of the loss, theft, destruction or mutilation of this
Agreement, and, in case of loss, theft or destruction, of indemnity or security
reasonably satisfactory to it, the Company will make and deliver a new Agreement
of like tenor, in lieu of this Agreement.

     Section 9.06.  Benefits of this Agreement.  Nothing in this Agreement shall
                    --------------------------
be construed to give to any person or Company other than the Company and the
Holder any legal or equitable right, remedy or claim under this Agreement. This
Agreement shall be for the sole and exclusive benefit of the Company and such
Holder.

     Section 9.07.  Headings.  The section headings herein are for convenience
                    --------
only and are not part of this Agreement and shall not affect the
interpretation hereof.

                            (Signature Page Follows)

                                       12
<PAGE>

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

                                     HOB ENTERTAINMENT, INC.

                                     By:
                                        ----------------------------
                                     Name:
                                          --------------------------
                                     Title:
                                           -------------------------
                                     HOLDER:

                                     -------------------------------

                    (if applicable)  By:
                                        ----------------------------
                                     Name:
                                          --------------------------
                                     Title:
                                           -------------------------

                                     Address for Notice:
                                     -------------------

                                       13
<PAGE>

               (SUBSCRIPTION FORM TO BE EXECUTED UPON EXERCISE OF
                          SOME OR ALL OF THE WARRANTS)

     The undersigned, registered holder or assignee of such registered Holder of
     the within Agreement, hereby:

     (a) subscribes for ___ shares of Common Stock which the undersigned is
     entitled to purchase under the terms of the within Agreement, (b) makes the
     full cash payment therefor called for by the within Agreement or elects a
     Cashless Exercise as provided therein, and (c) directs that the Common
     Stock issuable upon exercise of said Warrants be issued as described
     hereunder.

     In addition, the undersigned acknowledges that he or she may be required to
     make the representations and warranties contained in Section 6.02 of the
                                                          ------------
     attached Agreement prior to HOB Entertainment, Inc.'s acceptance of this
     subscription.

                                                --------------------------
                                                (Name)

                                                --------------------------
                                                (Address)

                                                --------------------------
                                                SIGNATURE

Dated:
      ----------------------
 ................................................................................

     NOTICE:  The signature on this subscription form must correspond with the
     name of the Holder as indicated in the attached Warrant Agreement, in every
     particular, without alteration or enlargement, or any change whatsoever,
     and must be guaranteed by a bank or trust company having an office or
     correspondent in New York, New York, or by a firm having membership on a
     registered national securities exchange.<PAGE>

                                                                    EXHIBIT 10.8

                             AMENDED AND RESTATED
                         REGISTRATION RIGHTS AGREEMENT

     This AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT (the "Agreement")
                                                                   ---------
is made as of September 10, 1999, by and among HOB ENTERTAINMENT, INC., a
Delaware corporation (the "Company"), the stockholders listed on Exhibit A
                           -------                               ---------
hereto (the "Existing Stockholders") and the new investors in the Company listed
             ---------------------
on Exhibit B hereto (the "New Stockholders").
   ---------              ----------------

     WHEREAS, in connection with the issuance and sale of certain shares of
Class A Preferred Stock of the Company (the "Class A Preferred Stock") the
                                             -----------------------
Company entered into a Registration Rights Agreement (the "Registration Rights
                                                           -------------------
Agreement"), granting to the holders of the Class A Preferred Stock and certain
---------
other security holders rights to have certain shares of common stock par value
$.0001 per share ("Common Stock"), of the Company registered for resale; and
                   ------------

     WHEREAS, in connection with the issuance and sale of shares of Class B
Preferred Stock of the Company (the "Class B Preferred Stock") and shares of
                                     -----------------------
Class C Preferred Stock of the Company (the "Class C Preferred Stock"), the
                                             -----------------------
Company entered into an Amended and Restated Registration Rights Agreement, as
amended on January 17, 1997 (the "1997 Registration Rights Agreement"), amending
                                  ----------------------------------
and restating the Registration Rights Agreement and additionally granting to the
holders of the Class B Preferred Stock and the Class C Preferred Stock and to
certain other holders of warrants and other securities of the Company rights to
have certain shares of Common Stock of the Company registered for resale; and

     WHEREAS, in connection with the issuance and sale of shares of the Class D-
1  Preferred Stock (formerly classified as Class D Preferred Stock, but to be
reclassified as Class D-1 Preferred Stock contemporaneous with the execution of
this Agreement), $.01 par value (the "Class D-1 Preferred Stock"), the Company
                                      -------------------------
entered into an Amended and Restated Registration Rights Agreement, dated as of
July 31, 1998 (the "1998 Registration Rights Agreement"), amending and restating
                    ----------------------------------
the 1997 Registration Rights Agreement and additionally granting to the holders
of the Class D-1 Preferred Stock rights to have certain shares of Common Stock
registered for resale; and

     WHEREAS, the Company is or will issue pursuant to a Purchase Agreement,
dated as of July 21, 1999 (the "1999 Preferred Stock Purchase Agreement"),
                                ---------------------------------------
relating to the issuance of shares of Class D-2 Preferred Stock, par value $.01
per share (the "Class D-2 Preferred Stock"), Class D-3 Preferred Stock, par
                -------------------------
value $.01 per share (the "Class D-3 Preferred Stock" and, collectively with the
                           -------------------------
Class D-1 Preferred Stock and the Class D-2 Preferred Stock, the "Class D
                                                                  -------
Preferred Stock"), 12 % Senior Redeemable Preferred Stock, $.01 par value (the
---------------
"Senior Preferred Stock"), and/or Senior Convertible Preferred Stock, par value
-----------------------
$.01 per share (the "Bridge Preferred Stock" and, collectively with the Class D-
                     ----------------------
2 Preferred Stock, the Class D-3 Preferred Stock and Senior Preferred Stock, the
"Acquisition Preferred Stock"), as well as the related issuance to purchasers of
 ---------------------------
Senior Preferred Stock and Bridge Preferred Stock of specified warrants to
acquire shares of Common Stock (the "1999 Warrants"), and
                                     -------------
<PAGE>

     WHEREAS, each share of Class A Preferred Stock, Class B Preferred Stock,
Class C Preferred Stock and Class D-1 Preferred Stock issued and outstanding as
of the date hereof, each share of Class D-2 Preferred Stock being issued
pursuant to the 1999 Preferred Stock Purchase Agreement, including shares of
Class D-2 Preferred Stock issuable upon conversion of the Bridge Preferred Stock
or the Class D-3 Preferred Stock and each share of the Company's Non-Voting
Common Stock (the "Non-Voting Common Stock"), par value $.0001 per share
                   -----------------------
(collectively, the "Shares"), is convertible into the number of shares of Common
                    ------
Stock of the Company as set forth in the Second Amended and Restated Certificate
of Incorporation of the Company (the "Conversion Shares"); and
                                      -----------------

     WHEREAS, the Company has obtained the consent of persons holding a majority
of the Registrable Securities (as defined herein) currently outstanding to the
amendment and restatement of the 1998 Registration Rights Agreement as set forth
herein; and

     WHEREAS, it is a condition to the purchase of the shares of Acquisition
Preferred Stock and the 1999 Warrants pursuant to the 1999 Preferred Stock
Purchase Agreement that the Company, Existing Stockholders holding at least a
majority of the Registrable Securities (determined on an as-converted, as-
exercised basis) and the parties to the 1999 Preferred Stock Purchase Agreement
enter into this Agreement.

     NOW, THEREFORE, in consideration of the foregoing recitals and the mutual
covenants and agreements herein contained, the parties hereto agree as follows:

1.   Registration Rights.
     -------------------

     1.1.  Definitions and Conventions.
           ---------------------------

          (a)  The terms "register," "registered," and "registration" refer to a
                          --------    ----------        ------------
     registration effected by preparing and filing a registration statement or
     similar document in compliance with the Securities Act of 1933, as amended
     (the "1933 Act"), and the automatic effectiveness or the declaration or
           --------
     ordering of effectiveness of such registration statement or document.

          (b)  The term "Registrable Securities" means (1) the Common Stock
                         ----------------------
     issuable or issued upon conversion of the Shares, (2) any Common Stock of
     the Company issuable or issued upon conversion of 212,963 shares of Class A
     Preferred Stock issued or issuable to Judith Belushi Pisano upon the
     exercise of an option to purchase such shares granted to Ms. Pisano, (3)
     62,500 shares of Common Stock issued or issuable to Michael Murphy on
     exercise of options granted by Isaac B. Tigrett to Michael Murphy, (4)
     500,000 shares of Common Stock issued or issuable to Laurence Bilzerian on
     exercise of options granted by Isaac B. Tigrett to Laurence Bilzerian, (5)
     shares of Common Stock transferred by Isaac B. Tigrett to InterRedec, Inc.
     or its affiliates, including without limitation Parkway Hotel Corp.
     (collectively "InterRedec"), including shares of Common Stock sold by, or
                    ----------
     issuable upon exercise of options granted by, Isaac B. Tigrett to
     InterRedec and upon any foreclosure of securities pledged by Isaac B.
     Tigrett to

                                       2
<PAGE>

     InterRedec, (6) the shares of Common Stock held by Isaac B. Tigrett as of
     the date hereof, including any such shares which are acquired by InterRedec
     or any other pledgee in a transaction permitted under the Company's Amended
     and Restated Stockholders Agreement, as the same may be further amended
     from time to time, (7) the shares of Common Stock issuable upon exercise of
     warrants granted to Platinum Venture Partners II, L.P. as of February 28,
     1997, (8) the shares of Common Stock issuable upon exercise of warrants
     granted to S.A. Blues Partners, L.P. ("S.A. Blues"), Chase Venture Capital
                                            ----------
     Associates, L.P. and Aeneas Venture Corporation as of February 28, 1997,
     (9) the Common Stock issued or issuable upon exercise of warrants to
     acquire up to 200,000 shares of Common Stock issued to Donaldson, Lufkin &
     Jenrette Securities Corporation, (10) the shares of Common Stock issued or
     issuable upon exercise of warrants to acquire up to 100,000 shares of
     Common Stock issued to Barefoot Blues Partnership, (11) the shares of
     Common Stock issued or issuable upon exercise of warrants to acquire up to
     100,000 shares of Common Stock issued to James Cafarelli, (12) the shares
     of Common Stock issued or issuable upon exercise of warrants to acquire up
     to 400,000 shares of Common Stock issued to Carbon Capital Mortgage
     Partners, L.P., (13) the shares of Common Stock issued or issuable upon
     exercise of warrants to acquire up to 300,000 shares of Common Stock issued
     to John Marks, (14) the shares of Common Stock issued or issuable upon
     exercise of warrants to acquire up to 262,500 shares of Common Stock issued
     to Nomura Asset Capital Corporation, (15) the shares of Common Stock issued
     or issuable upon exercise of warrants to acquire up to 334,000 shares of
     Common Stock issued to Platinum Blues Chicago, L.L.C., (16) [intentionally
     omitted], (17) the shares of Common Stock issuable upon exercise of
     warrants granted to investors pursuant to the Class C Preferred Stock
     Purchase Agreement among the Company and the purchasers of the Class C
     Preferred Stock and related Warrant Agreements, (18) the shares of Common
     Stock issuable upon exercise of the 1999 Warrants issued or issuable in
     conjunction with the Senior Preferred Stock and the Bridge Preferred Stock
     and the shares of Common Stock issuable upon exercise, or issuable upon
     conversion of Non-Voting Common Stock issuable upon exercise, of the
     warrants issued to Universal Studios, Inc. in connection with the Company's
     acquisition of Universal Concerts, Inc. (the shares of Common Stock issued
     or issuable upon exercise of warrants referred to in subsections (7), (8),
     (9), (12), (14), (17) and (18) are collectively referred to herein as the
     "Warrant Shares"), (19) the shares of Common Stock issued or issuable upon
     ---------------
     exercise of options to acquire up to 100,000 shares of Common Stock issued
     to James Belushi, and (20) any Common Stock of the Company issued as (or
     issuable upon the conversion or exercise of any warrant, option, right, or
     other security which is issued as) a dividend or other distribution with
     respect to, in exchange for, or in replacement of, the securities described
     in (1) through (19) above; provided, however, that any shares previously
                                --------  -------
     sold to the public pursuant to a registered public offering or through a
     broker, dealer or market maker in compliance with Rule 144 under the 1933
     Act pursuant to which the transferee received freely-tradable securities
     without any restrictive legend shall cease to be Registrable Securities;
     and provided further that the registration rights provided for herein shall
         -------- -------
     apply only to the resale of the shares of Common Stock described in
     subsections (1) through (20) above and not to their original issuance by
     the Company.

                                       3
<PAGE>

          (c)  The number of shares of Registrable Securities outstanding at any
     time shall be determined by adding the number of shares of Common Stock
     outstanding which are, and the number of shares of Common Stock issuable
     pursuant to then exercisable or convertible securities which upon issuance
     or exercise would be, Registrable Securities.

          (d)  The term "Holder" means any person owning or having the right to
                         ------
     acquire Registrable Securities or any assignee thereof in accordance with
     Section 1.13 hereof.

          (e)  The terms "Form S-1," "Form S-3," "Form S-4" and "Form S-8" mean
                          --------    --------    --------       --------
     such respective forms under the 1933 Act as in effect on the date hereof or
     any successor registration forms to Form S-1, Form S-3, Form S-4 and Form
     S-8, respectively, under the 1933 Act subsequently adopted by the
     Securities and Exchange Commission ("SEC").
                                          ---

          (f)  The term "Designated Class D Holder" shall mean any of (i) Chase
                         -------------------------
     Capital Partners (which shall be deemed to include any affiliated
     investment partnership, limited liability company or similar entity
     (including, without limitation, Chase Venture Capital Associates, L.P.,
     Chase/HOB Partners 1998 (GC), LLC and Chase/HOB Partners 1999 (GC), LLC,
     all of which are referred to herein as "CCP"), (ii) J.H. Whitney & Co.,
                                             ---
     J.H. Whitney III, L.P., Whitney Strategic Partners III, L.P. and J.H.
     Whitney Market Value Fund, L.P. (collectively, "J.H. Whitney"), (iii) First
     Union Investors, Inc. ("First Union"), (iv) S.A. Blues Partners L.P. ("S.A.
                             -----------                                    ----
     Blues"), and (v) Ares Leveraged Investment Fund, L.P. and Ares Leveraged
     -----
     Investment Fund II, L.P. (collectively, "Ares").
                                              ----

          (g)  The terms "Requisite Holders" shall mean (i) CCP and (ii) any two
                          -----------------                     ---
     of J.H. Whitney, S.A. Blues and First Union.

          (h)  The term "Class D Registrable Securities" shall mean (i) the
                         ------------------------------
     Conversion Shares related to the Class D Preferred Stock, (ii) the
     Conversion Shares related to the Non-Voting Common Stock issued upon
     conversion of the Class D-3 Preferred Stock and (iii) the Warrant Shares
     related to the 1999 Warrants.

          (i)  The term "SEC" shall mean the U.S. Securities and Exchange
                         ---
     Commission.

     1.2.  Request for Registration.
           ------------------------

          (a)  General Demand Rights.  If the Company shall receive at any time
               ---------------------
     after the date six months after the effective date of the first
     registration statement for a firm commitment underwritten public offering
     of Common Stock of the Company registered with the SEC, a written request
     from either (i) the Holders of in excess of 25% of the Registrable
     Securities then outstanding and entitled to registration rights under this
     Section 1 or (ii) any Designated Class D Holder (the "Initiating
                                                           ----------
     Holder(s)") that the Company effect the registration under the 1933 Act of
     ---------
     at least (x) 15% of the Registrable Securities then outstanding or (y) the
     number of Registrable Securities whose aggregate

                                       4
<PAGE>

     offering price is expected to be at least $20,000,000 (whichever is
     lesser), then the Company shall, within five days of the receipt thereof,
     give written notice of such request to all Holders and shall, subject to
     the limitations of this Section 1.2, use its reasonable best efforts to
     effect such a registration as soon as practicable and in any event to file
     within 75 days of the receipt of such request a registration statement
     under the 1933 Act covering all the Registrable Securities which the
     Holders shall in writing request (given within 20 days of receipt of the
     notice given by the Company pursuant to this Section 1.2(a)) to be included
     in such registration and to use its reasonable best efforts to have such
     registration statement become effective.

          (b)  Demand Rights of Requisite Holders.  Notwithstanding anything to
               ----------------------------------
     the contrary contained in Section 1.2(a), (with respect to the prior
     occurrence of an underwritten public offering by the Company or expiration
     of a six month period thereafter) or in Section 1.2(e), if the Company
     shall receive at any time on or after the date hereof a written request
     from the Requisite Holders entitled to registration rights under this
     Section 1 (the "Initiating Holders") that the Company effect the
                     ------------------

     registration under the 1933 Act of at least (i) 25% of the Class D
     Registrable Securities then outstanding or (ii) the number of Class D
     Registrable Securities whose aggregate offering price is expected to be at
     least $10 million (whichever is lesser), then the Company shall, within
     five days of the receipt thereof, give written notice of such request to
     all Holders of Registrable Securities and shall, subject to the limitations
     of this Section 1.2, use its reasonable best efforts to effect such a
     registration as soon as practicable and in any event to file within 75 days
     of the receipt of such request a registration statement under the 1933 Act
     covering all the Registrable Securities which such Holders shall in writing
     request (given within 20 days of receipt of the notice given by the Company
     pursuant to this Section 1.2(b)) to be included in such registration and to
     use its reasonable best efforts to have such registration statement become
     effective.

          (c)  Procedures for Underwritten Offering.  If the Initiating Holders
               ------------------------------------
     intend to distribute the Registrable Securities covered by their request by
     means of an underwriting, they shall so advise the Company as part of their
     request made pursuant to this Section 1.2 and the Company shall include
     such information in the written notice referred to in subsection 1.2(a) and
     (b). In such event, the right of any Holder to include its Registrable
     Securities in such registration shall be conditioned upon such Holder's
     participation in such underwriting and the inclusion of such Holder's
     Registrable Securities in the underwriting (unless otherwise mutually
     agreed by a majority in interest of the Initiating Holders and such Holder)
     to the extent provided herein. All Holders proposing to distribute their
     securities through such an underwriting shall (together with the Company as
     provided in subsection 1.4(e)) enter into an underwriting agreement in
     customary form with the underwriter or underwriters selected for such
     underwriting by a majority in interest of the Initiating Holders, subject
     to approval by the Company, such approval not to be unreasonably withheld.
     Notwithstanding any other provision of this Section 1.2, if, in the case of
     a registration requested pursuant to Section 1.2(a) or (b), the underwriter
     advises the Initiating Holders and the Company in writing that marketing
     factors require a limitation of the number of shares to be underwritten,
     then the Initiating

                                       5
<PAGE>

     Holders shall so advise the Company and all Holders of Registrable
     Securities which would otherwise be underwritten pursuant hereto, and the
     number of Registrable Securities that may be included in the underwriting
     shall be allocated in the following order of priority: (i) first, Class D
     Registrable Securities pro rata among all Holders of Class D Registrable
     Securities desiring to participate in such underwriting (according to the
     number of Class D Registrable Securities then held by each such Holder),
     (ii) second, Conversion Shares related to Class C Preferred Stock and
     Warrant Shares (other than Warrant Shares related to the 1999 Warrants) pro
     rata among all Holders of Class C Preferred Stock and Conversion Shares
     related thereto and the Warrant Shares (other than Warrant Shares related
     to the 1999 Warrants) desiring to participate in such underwriting
     (according to the number of Conversion Shares issued or issuable upon
     conversion of the Class C Preferred Stock and Warrant Shares (other than
     Warrant Shares related to the 1999 Warrants) issued or issuable upon
     exercise of the related warrants then held by each such Holder) and (iii)
     finally, pro rata among all Holders of other Registrable Securities
     desiring to participate in such underwriting (according to the number of
     other Registrable Securities then held by each Holder). No Registrable
     Securities requested by a Holder to be included in a registration pursuant
     to Section 1.2(a) or (b) shall be excluded from the underwriting unless all
     securities other than Registrable Securities are first excluded.

          (d)  Limitations on Demand Registrations. The Company is obligated to
               -----------------------------------
     effect only three registrations pursuant to Section 1.2(a) and only three
     registrations pursuant to Section 1.2(b); provided, however, that no
                                               --------  -------
     registration of Registrable Securities which shall not have become and
     remained effective in accordance with Section 1.4 hereof shall be deemed to
     be a registration for any purpose of this sentence.

          (e)  Deferral Right.  Notwithstanding the foregoing, (i) the Company
               --------------
     shall not, except in accordance with Section 1.2(b), be obligated to effect
     the filing of a registration statement pursuant to this Section 1.2 during
     the 180 days following the effective date of a registration statement
     pertaining to the underwritten public offering of equity securities for the
     account of the Company, or (ii) if the Company shall furnish to Holders
     requesting a registration statement pursuant to this Section 1.2 a
     certificate signed by the Chairman of the Board or Chief Executive Officer
     of the Company stating that in the good faith judgment of the Board of
     Directors of the Company, it would not be in the best interests of the
     Company and its stockholders generally for such registration statement to
     be filed, the Company shall have the right to defer such filing for a
     period of not more than 180 days after receipt of the request of the
     Initiating Holders; provided, however, that the Company may not utilize the
                         --------  -------
     right set forth in this subsection (e)(ii) more than once in any twelve-
     month period; nor, to the extent a registration request is received by the
     Company within the 180-day period set forth in this subsection (e)(i),
     shall the Company utilize the right set forth in this subsection (e)(ii) in
     combination with the delay right set forth in such subsection (e)(i) to
     cause a delay of more than 180 days from the date of such request until the
     filing of such registration statement.

          (f)  SEC Form to be Used.  Each registration requested pursuant to
               -------------------
     Section 1.2(a) or (b) shall be effected by the filing of a registration
     statement on

                                       6
<PAGE>

     Form S-1, unless the use of a different form is consented to by Initiating
     Holders holding a majority of Registrable Securities or Class D Registrable
     Securities, as the case may be, held by all Initiating Holders or unless
     another form would be equally effective, as determined by the Initiating
     Holders in their sole discretion.

     1.3.  Company Registration.  If (but without any obligation to do so) the
           --------------------
Company proposes to register (including for this purpose a registration effected
by the Company for stockholders other than the Holders) any of its capital stock
or other securities under the 1933 Act in connection with the public offering of
such securities solely for cash (other than a registration on Form S-8 or any
successor form relating solely to the sale of securities to participants in a
Company stock plan, or a registration on Form S-4 or any successor form), the
Company shall, at such time, promptly give each Holder written notice of such
registration.  Upon the written request of a Holder given within 20 days after
mailing of such notice by the Company, the Company shall, subject to the
provisions of Section 1.8, use its reasonable best efforts to cause a
registration statement covering all of the Registrable Securities that such
Holder has requested to be registered to become effective under the 1933 Act.
The Company shall be under no obligation to complete any offering of its
securities it proposes to make and shall incur no liability to any Holder for
its failure to do so.  Notwithstanding the foregoing, this Section 1.3 shall not
apply to a Qualified Public Offering (as defined in the immediately following
sentence) if the managing underwriter or, after consultation with the managing
underwriter, the Company's Board of Directors determines that marketing or other
factors favor an offering of securities for the account of the Company only.
For purposes hereof, a "Qualified Public Offering" shall mean an underwritten
                        -------------------------
initial public offering on a firm commitment basis pursuant to an effective
registration statement under the 1933 Act covering the offer and sale of Common
Stock for the account of the Company, in which the aggregate gross proceeds to
the Company are at least $30,000,000, at a price per share of Common Stock
greater than or equal to $2.00 per share (such per share amount shall be
adjusted for stock splits, stock dividends and the like).

     1.4.  Obligations of the Company.  Whenever required under this Section 1
           --------------------------
to use its reasonable best efforts to effect the registration of any Registrable
Securities, the Company shall, as expeditiously as reasonably possible: prepare
and file with the SEC a registration statement with respect to such Registrable
Securities and use its reasonable best efforts to cause such registration
statement to become effective, and, upon the request of the Holders of a
majority of the Registrable Securities registered thereunder, keep such
registration statement effective for up to 180 days or until the Holders have
informed the Company in writing that the distribution of their securities has
been completed; and shall:

          (a)  Prepare and file with the SEC such amendments and supplements to
     such registration statement and the prospectus used in connection with such
     registration statement, and use its reasonable best efforts to cause each
     such amendment to become effective, as may be necessary to comply with the
     provisions of the 1933 Act with respect to the disposition of all
     securities covered by such registration statement.

                                       7
<PAGE>

          (b)  Furnish to the Holders such reasonable number of copies of a
     prospectus, including a preliminary prospectus, in conformity with the
     requirements of the 1933 Act, and such other documents as they may
     reasonably request in order to facilitate the disposition of Registrable
     Securities owned by them.

          (c)  Use its reasonable best efforts to register or qualify the
     securities covered by such registration statement under such other
     securities or Blue Sky laws of such jurisdictions as shall be reasonably
     requested by the Holders provided that the Company shall not be required in
     connection therewith or as a condition thereto to qualify to do business or
     to file a general consent to service of process in any such states or
     jurisdiction.

          (d)  In the event of any underwritten public offering, enter into and
     perform its obligations under an underwriting agreement, in usual and
     customary form, with the managing underwriter of such offering. Each Holder
     participating in such underwriting shall also enter into and perform its
     obligations under such an agreement, including furnishing any opinion of
     counsel and entering into a lock-up agreement reasonably requested by the
     managing underwriter.

          (e)  Notify each Holder of Registrable Securities covered by such
     registration statement, at any time when a prospectus relating thereto
     covered by such registration statement is required to be delivered under
     the 1933 Act, at such time as the prospectus included in such registration
     statement, as then in effect, includes an untrue statement of a material
     fact or omits to state a material fact required to be stated therein or
     necessary to make the statements therein not misleading in the light of the
     circumstances then existing and promptly file such amendments and
     supplements which may be required pursuant to subparagraph (b) of this
     Section 1.4 on account of such event and use its reasonable best efforts to
     cause each such amendment and supplement to become effective.

          (f)  Furnish, at the request of any Holder requesting registration of
     Registrable Securities pursuant to this Section 1, on the date that such
     Registrable Securities are delivered to the underwriters for sale in
     connection with a registration pursuant to this Section 1, if such
     securities are being sold through underwriters, or, if such securities are
     not being sold through underwriters on the date that the registration
     statement with respect to such securities becomes effective, (i) an opinion
     or opinions, dated such date, of the counsel representing the Company for
     the purposes of such registration, in form and substance as is customarily
     given by company counsel to the underwriters in an underwritten public
     offering, addressed to the underwriters, if any, and to the Holders
     requesting registration of Registrable Securities and (ii) a letter dated
     such date, from the independent certified public accountant of the Company,
     in form and substance as is customarily given by independent certified
     public accountants to underwriters in an underwritten public offering,
     addressed to the underwriters, if any, and to the Holders requesting
     registration of Registrable Securities (if permitted by applicable
     professional standards).

                                       8
<PAGE>

          (g)  Apply for listing and use its reasonable best efforts to list the
     Registrable Securities being registered on any national securities exchange
     on which a class of the Company's equity securities is listed or, if the
     Company does not have a class of equity securities listed on a national
     securities exchange but does have a class of equity securities quoted on
     the automated quotation system of the National Association of Securities
     Dealers, Inc. (the "NASD"), apply for qualification and use its reasonable
                         ----
     best efforts to qualify the Registrable Securities being registered for
     inclusion on the automated quotation system of the NASD.

          (h)  Without in any way limiting the types of registrations to which
     this Section 1 shall apply, in the event that the Company shall effect a
     "shelf registration" under Rule 415 promulgated under the 1933 Act, the
     Company shall take all necessary action, including, without limitation, the
     filing of post-effective amendments, to permit the Holders to include their
     Registrable Securities in such registration in accordance with the terms of
     this Section 1.

     1.5.  Furnish Information.  It shall be a condition precedent to the
           -------------------
obligations of the Company to take any action pursuant to this Section 1 in
respect of the Registrable Securities of any selling Holder that such selling
Holders shall furnish to the Company such information regarding themselves, the
Registrable Securities held by them, and the intended method of disposition of
such securities as shall reasonably be required to effect the registration of
their Registrable Securities.

     1.6.  Expenses of Demand Registration.  All expenses other than
           -------------------------------
underwriting discounts and commissions relating to Registrable Securities
incurred in connection with each registration, filing or qualification pursuant
to Section 1.2(a) or (b) and all registrations, filings or qualifications
pursuant to Section 1.11, including (without limitation) all registration,
filing and qualification fees, printing and accounting fees, fees and
disbursements of counsel for the Company, and the reasonable fees and
disbursements of one counsel for the selling Holders shall be borne by the
Company; provided, however, that the Company shall not be required to pay for
         --------  -------
any expenses of any registration proceeding begun pursuant to Section 1.2(a) or
(b) if the registration request is subsequently withdrawn at any time at the
request of the Holders of a majority of the Class D Registrable Securities to be
registered pursuant to Section 1.2(b) or the Holders of a majority of the
Registrable Securities to be registered pursuant to Section 1.2(a), as the case
may be (in which cases all participating Holders shall bear such expenses),
unless the Holders of a majority of the Registrable Securities or Class D
Registrable Securities, as the case may be, agree to forfeit their right to one
demand registration pursuant to Section 1.2(a) or (b) as the case may be;
provided further, however, that if at the time of such withdrawal, the Holders
-------- -------  -------
have learned of a material adverse change in the condition, business, or
prospects of the Company from that known to the Holders of a majority of the
Registrable Securities then outstanding at the time of their request that makes
the proposed offering unreasonable in the good faith judgment of a majority in
interest of the Holders of the Registrable Securities or Class D Registrable
Securities, as the case may be, then the Holders shall not be required to pay
any of such expenses and the right to one demand registration pursuant to
Section 1.2(a) or (b) as the case may be, shall not be forfeited. Underwriting
discounts and commissions relating to

                                       9
<PAGE>

Registrable Securities will be borne and paid ratably by the Holders of such
Registrable Securities.

     1.7.  Expenses of Company Registration.  The Company shall bear and pay all
           --------------------------------
expenses incurred in connection with any registration, filing or qualification
of Registrable Securities with respect to the registrations pursuant to Section
1.3 for each Holder (which right may be assigned as provided in Section 1.13),
including, without limitation, all registration, filing and qualification fees,
printing and accounting fees, fees and disbursements of counsel for the Company
and the reasonable fees and disbursements of one counsel for the selling
Holders.  Underwriting discounts and commissions relating to Registrable
Securities will be borne and paid ratably by the Holders of such Registrable
Securities.

     1.8.  Underwriting Requirements.  In connection with any offering involving
           -------------------------
an underwriting of securities being issued by the Company, the Company shall not
be required under Section 1.3 to include any of the Holders' securities in such
underwriting unless they accept the terms of the underwriting as agreed upon
between the Company and the underwriters selected by it, and then only in such
quantity, if any, as will not, in the opinion of the managing underwriter,
jeopardize the success of the offering by the Company. If the managing
underwriter for the offering shall advise the Company in writing that the total
amount of securities, including Registrable Securities, requested by
stockholders to be included in such offering exceeds the amount of securities to
be sold other than by the Company that can be successfully offered, then the
Company shall be required to include in the offering only that number of such
securities, including Registrable Securities, which the managing underwriter
believes will not jeopardize the success of the offering (the securities so
included to be reduced as follows: all securities other than those to be
included by the Company for its own account and other than those which the
Holders seek to include in the offering shall be excluded from the offering to
the extent limitation on the number of shares included in the underwriting is
required, and, if further limitation on the number of shares to be included in
the underwriting is required, then the number of Registrable Securities that may
be included in the underwriting shall be allocated in the following order of
priority: (i) first, Class D Registrable Securities pro rata among all Holders
of Class D Registrable Securities desiring to participate in such underwriting
(according to the number of Class D Registrable Securities then held by each
such Holder), (ii) second, Conversion Shares related to Class C Preferred Stock
and Warrant Shares (other than Warrant Shares related to the 1999 Warrants) pro
rata among all Holders of Class C Preferred Stock and Conversion Shares related
thereto and the Warrant Shares (other than the Warrant Shares related to the
1999 Warrants) desiring to participate in such underwriting (according to the
number of Conversion Shares issued or issuable upon conversion of the Class C
Preferred Stock and Warrant Shares (other than the Warrant Shares related to the
1999 Warrants) issued or issuable upon exercise of the related warrants then
held by each such Holder) and (iii) finally, pro rata among all Holders of other
Registrable Securities desiring to participate in such underwriting (according
to the number of other Registrable Securities then held by each Holder); but in
no event shall the amount of securities of the selling Holders included in the
offering be reduced below 20% (twenty percent) of the total amount of securities
included in such offering, unless (i) such offering is the initial public
offering of the Company's securities in which case the selling Holders may be
excluded if the managing underwriter makes the determination described above

                                       10
<PAGE>

and no securities other than those of the Company are included, or (ii) such
offering is the Qualified Public Offering as defined in Section 1.3 hereof and
no securities other than those of the Company are included.  For purposes of the
preceding parenthetical concerning apportionment, for any selling stockholder
which is a Holder of Registrable Securities and which is a partnership or a
corporation, the partners, retired partners and shareholders of such holder, or
the estates and family members of such partners and retired partners and any
trusts for the benefit of any of the foregoing persons shall collectively be
deemed to be a "selling Holder," and any pro rata reduction with respect to such
"selling Holder" shall be based upon the aggregate amount of shares carrying
registration rights owned by all entities and individuals included in such
"selling Holder," as defined in this sentence.

     1.9.  Indemnification. In the event any Registrable Securities are included
           ---------------
in a registration statement under this Section 1:

          (a)  The Company will indemnify and hold harmless each Holder, the
     officers, directors, partners, agents and employees of each Holder, any
     underwriter (as defined in the 1933 Act) for such Holder and each person,
     if any, who controls such Holder or underwriter within the meaning of the
     1933 Act or the Securities Exchange Act of 1934, as amended (the "1934
                                                                       ----
     Act"), against any losses, claims, damages, or liabilities (joint or
     ---
     several) to which they may become subject under the 1933 Act, the 1934 Act
     or other federal or state law, insofar as such losses, claims, damages, or
     liabilities (or actions in respect thereof) arise out of or are based upon
     any of the following statements, omissions or violations (a "Violation"):
                                                                  ---------
     (i) any untrue statement or alleged untrue statement of a material fact
     contained in such registration statement, including any preliminary
     prospectus or final prospectus contained therein or any amendments or
     supplements thereto, (ii) the omission or alleged omission to state therein
     a material fact required to be stated therein or necessary to make the
     statements therein, in light of the circumstances in which they were made,
     not misleading, or (iii) any violation or alleged violation by the Company
     of the 1933 Act, the 1934 Act, any state securities law or any rule or
     regulation promulgated under the 1933 Act, the 1934 Act or any state
     securities law in connection with any matter relating to such registration
     statement. The Company will promptly reimburse each such Holder, officer,
     director, partner, agent, employee, underwriter or controlling person for
     any legal or other expenses reasonably incurred by them in connection with
     investigating or defending any such loss, claim, damage, liability, or
     action. The indemnity agreement contained in this subsection 1.9(a) shall
     not apply to amounts paid in settlement of any loss, claim, damage,
     liability, or action if such settlement is effected without the consent of
     the Company (which consent shall not be unreasonably withheld), nor shall
     the Company be liable to a Holder in any such case for any such loss,
     claim, damage, liability, or action (i) to the extent that it arises out of
     or is based upon a Violation which occurs in reliance upon and in
     conformity with written information furnished expressly for use in
     connection with such registration by or on behalf of such Holder,
     underwriter or controlling person or (ii) in the case of a sale directly by
     a Holder of Registrable Securities (including a sale of such Registrable
     Securities through any underwriter retained by such Holder to engage in a
     distribution solely on behalf of such Holder), such untrue statement or
     alleged untrue statement or

                                       11
<PAGE>

     omission or alleged omission was contained in a preliminary prospectus and
     corrected in a final or amended prospectus, and such Holder failed to
     deliver a copy of the final or amended prospectus at or prior to the
     confirmation of the sale of the Registrable Securities to the person
     asserting any such loss, claim, damage or liability in any case where such
     delivery is required by the Securities Act.

          (b)  The Company may require, as a condition to including any
     Registrable Securities in any registration statement, that the Company
     shall have received an undertaking from the prospective selling Holder that
     such selling Holder will indemnify and hold harmless the Company, each of
     its directors, each of its officers who have signed the registration
     statement, each person, if any, who controls the Company within the meaning
     of the 1933 Act, each agent and any underwriter for the Company, and any
     other Holder selling securities in such registration statement or any of
     its directors, officers, partners, agents or employees or any person who
     controls such Holder or underwriter, against any losses, claims, damages,
     or liabilities (joint or several) to which the Company or any such
     director, officer, controlling person, agent, or underwriter or controlling
     person, or other such Holder or director, officer or controlling person may
     become subject, under the 1933 Act, the 1934 Act or other federal or state
     law, insofar as such losses, claims, damages or liabilities (or actions in
     respect thereto) arise out of or are based upon any Violation, in each case
     to the extent (and only to the extent) that such Violation occurs in
     reliance upon and in conformity with written information furnished by or on
     behalf of such Holder expressly for use in connection with such
     registration; and each such Holder will promptly reimburse any legal or
     other expenses reasonably incurred by the Company or any such director,
     officer, controlling person, agent or underwriter or controlling person,
     other Holder, officer, director, partner, agent, employee, or controlling
     person in connection with investigating or defending any such loss, claim,
     damage, liability, or action; provided, however, that the liability of any
                                   --------  -------
     Holder hereunder shall be limited to the amount of net proceeds (after
     deduction of all underwriters' discounts and commissions and all other
     expenses paid by such Holder in connection with the registration in
     question) received by such Holder, in the offering giving rise to the
     Violation; and provided further that the indemnity agreement contained in
                    -------- -------
     this subsection 1.9(b) shall not apply to amounts paid in settlement of any
     such loss, claim, damage, liability or action if such settlement is
     effected without the consent of the Holder, which consent shall not be
     unreasonably withheld nor, in the case of a sale directly by the Company of
     its securities (including a sale of such securities through any underwriter
     retained by the Company to engage in a distribution solely on behalf of the
     Company), shall the Holder be liable to the Company in any case in which
     such untrue statement or alleged untrue statement or omission or alleged
     omission was contained in a preliminary prospectus and corrected in a final
     or amended prospectus, and the Company failed to deliver a copy of the
     final or amended prospectus at or prior to the confirmation of the sale of
     the securities to the person asserting any such loss, claim, damage or
     liability in any case where such delivery is required by the 1933 Act.

          (c)  Promptly after receipt by an indemnified party under this Section
     1.9 of notice of the commencement of any action (including any governmental
     action), such

                                       12
<PAGE>

     indemnified party will, if a claim in respect thereof is to be made against
     any indemnifying party under this Section 1.9, deliver to the indemnifying
     party a written notice of the commencement thereof and the indemnifying
     party shall have the right to participate in, and, to the extent the
     indemnifying party so desires, jointly with any other indemnifying party
     similarly noticed, to assume and control the defense thereof with counsel
     mutually satisfactory to the parties; provided, however, that an
                                           --------  -------
     indemnified party shall have the right to retain its own counsel, with the
     fees and expenses to be paid by the indemnifying party, if representation
     of such indemnified party by the counsel retained by the indemnifying party
     would be inappropriate due to actual or potential differing interests, as
     reasonably determined by either party, between such indemnified party and
     any other party represented by such counsel in such proceeding. The failure
     to deliver written notice to the indemnifying party within a reasonable
     time of the commencement of any such action, if materially prejudicial to
     its ability to defend such action, shall relieve such indemnifying party of
     any liability to the indemnified party under this Section 1.9 to the extent
     of such prejudice, but the omission so to deliver written notice to the
     indemnifying party will not relieve it of any liability that it may have to
     any indemnified party otherwise than under this Section 1.9.

          (d)  The obligations of the Company and the Holders under this Section
     1.9 shall survive the conversion, if any, of the Shares and the completion
     of any offering of Registrable Securities in a registration statement
     whether under this Section 1 or otherwise.

          (e)  If the indemnification provided for in this Section 1.9 is
     unavailable to a party that would have been an indemnified party under such
     Section in respect of any losses, claims, damages or liabilities (or
     actions or proceedings in respect thereof) referred to therein, then each
     party that would have been an indemnifying party thereunder shall, in lieu
     of indemnifying such indemnified party, contribute to the amount paid or
     payable by such indemnified party as a result of such losses, claims,
     damages or liabilities (or actions or proceedings in respect thereof) in
     such proportion as is appropriate to reflect the relative fault of such
     indemnifying party on the one hand and such indemnified party on the other
     in connection with the statements or omissions which resulted in such
     losses, claims, damages or liabilities (or actions or proceedings in
     respect thereof). The relative fault shall be determined by reference to,
     among other things, whether the Violation relates to information supplied
     by such indemnifying party or such indemnified party and the parties'
     relative intent, knowledge, access to information and opportunity to
     correct or prevent such Violation. The parties agree that it would not be
     just and equitable if contribution pursuant to this Section 1.9(e) were
     determined by pro rata allocation or by any other method of allocation
     which does not take account of the equitable considerations referred to in
     the preceding sentence. The amount paid or payable by a contributing party
     as a result of the losses, claims, damages or liabilities (or actions or
     proceedings in respect thereof) referred to above in this Section 1.9(e)
     shall include any legal or other expenses reasonably incurred by such
     indemnified party in connection with investigating or defending any such
     action or claim. No person guilty of fraudulent misrepresentation (within
     the meaning of Section 11(f) of the Securities Act)

                                       13
<PAGE>

     shall be entitled to contribution from any person who was not guilty of
     such fraudulent misrepresentation. The liability of any Holder of
     Registrable Securities in respect of any contribution obligation of such
     Holder (after deduction of all underwriters' discounts and commissions and
     all other expenses paid by such Holder in connection with the registration
     in question) arising under this Section 1.9(e) shall not in any event
     exceed an amount equal to the net proceeds to such Holder from the
     disposition of the Registrable Securities disposed of by such Holder
     pursuant to such registration less any amounts paid pursuant to Section
     1.9(b).

     1.10.  Reports Under Securities Exchange Act of 1934.
            ---------------------------------------------

          (a)  Resales Under Rule 144; Form S-3 Registration.  With a view to
               ---------------------------------------------
     making available to the Holders the benefits of Rule 144 promulgated under
     the 1933 Act and any other rule or regulation of the SEC that may at any
     time permit a Holder to sell securities of the Company to the public
     without registration, and with a view to making it possible for Holders to
     register the Registrable Securities pursuant to a registration on Form S-3,
     the Company agrees to:

               (i)    use its reasonable best efforts to make and keep public
          information available, as those terms are understood and defined in
          Rule 144, at all times after 90 days after the effective date of the
          first registration statement filed by the Company for the offering of
          its securities to the general public;

               (ii)   take such action, including the voluntary registration of
          its Common Stock under Section 12 of the 1934 Act, as is necessary to
          enable the Holders to utilize Form S-3 for the sale of their
          Registrable Securities, such action to be taken as soon as practicable
          (but not later than 90 days) after the end of the fiscal year in which
          the first registration statement filed by the Company for the offering
          of its securities to the general public is declared effective;

               (iii)  use its reasonable best efforts to file with the SEC in a
timely manner all reports and other documents required of the Company under the
1933 Act and the 1934 Act; and

               (iv)   furnish to any Holder, so long as the Holder owns any
          Registrable Securities, forthwith upon request (i) a written statement
          by the Company as to its compliance with the reporting requirements of
          Rule 144 (at any time after 90 days after the effective date of the
          first registration statement filed by the Company for the offering of
          the securities to the general public), the 1933 Act and the 1934 Act
          (at any time after it has become subject to such reporting
          requirements), or as to its qualification as a registrant whose
          securities may be resold pursuant to Form S-3 (at any time after it so
          qualifies), (ii) a copy of the most recent annual or quarterly report
          of the Company and such other reports and documents so filed by the
          Company, and (iii) such other information as may be reasonably
          requested in availing any Holder of any rule or regulation of the SEC
          which permits the selling of any such securities without registration
          or pursuant to such form.

                                       14
<PAGE>

          (b)  Resale Under Rule 144A.  The Company agrees that, at all times
               ----------------------
     during which the Company is neither subject to the reporting requirement of
     Sections 13 or 15(d) of the 1934 Act, nor exempt from reporting pursuant to
     Rule 12g3-2(b) under the 1934 Act, it will provide in written form, upon
     the written request of a Holder, or a prospective purchaser of securities
     of the Company from such Holder all information required by Rule
     144A(d)(4)(i) of the General Regulations promulgated by the SEC under the
     1933 Act ("144A Information"); the Company further agrees, upon written
                ----------------
     request, to cooperate with and assist any Holder or any member of the NASD
     system for Private Offerings Resales and Trading through Automated Linkages
     ("PORTAL") in applying to designate and thereafter maintaining the
       ------
     eligibility of the Company's securities for trading through PORTAL. With
     respect to each Holder, the Company's obligations under this Section
     1.10(b) shall at all times be contingent upon such Holder's obtaining from
     a prospective purchaser an agreement to take all reasonable precautions to
     safeguard the Rule 144A Information from disclosure to anyone other than
     employees of the prospective purchaser who require access to the 144A
     Information for the sole purpose of evaluating its purchase of the
     Company's securities.

     1.11.  Form S-3 Registration.  In addition to the rights granted pursuant
            ---------------------
to Section 1.2 hereof, in case the Company shall receive from any Holder or
Holders a written request or requests that the Company effect a registration on
Form S-3 (or on any successor form to Form S-3 regardless of its designation)
and any related qualification or compliance with respect to all or a part of the
Registrable Securities owned by such Holder or Holders (which, as contemplated
by Section 1.4(g), may be a shelf registration), the Company will:

          (a)  promptly give written notice of the proposed registration, and
     any related qualification or compliance, to all other Holders; and

          (b)  use its reasonable best efforts to effect, as soon as
     practicable, such registration, qualification or compliance as may be so
     requested and as would permit or facilitate the sale and distribution of
     all or such portion of such Holder's or Holders' Registrable Securities as
     are specified in such request, together with all or such portion of the
     Registrable Securities of any other Holder or Holders joining in such
     request as are specified in a written request given within 20 days after
     receipt of such written notice from the Company; provided, however, that
                                                      --------  -------
     the Company shall not be obligated to effect any such registration,
     qualification or compliance, pursuant to this Section 1.11 if: (1) Form S-3
     (or any successor form to Form S-3 regardless of its designation) is not
     available for such offering by the Holders; (2) the aggregate net offering
     price (after deduction of underwriting discounts and commissions) of the
     Registrable Securities specified in such request is not at least
     $2,500,000; (3) the Company has already effected one registration on Form
     S-3 in which Holders had a right to participate within the previous six-
     month period; (4) the Company has effected the initial public offering of
     its Common Stock within the previous twelve month period; or (5) the
     Company shall furnish to the Holders a certificate signed by the Chairman
     of the Board or Chief Executive Officer of the Company stating that in the
     good faith judgment of the Board of Directors of the Company, it would not
     be in the best interests of the Company and its

                                       15
<PAGE>

     stockholders for such Form S-3 registration to be effected at such time, in
     which event the Company shall have the right to defer the filing of the
     Form S-3 registration for a period of not more than 180 days after receipt
     of the request of the Holder or Holders under this Section 1.11; provided,
                                                                      --------
     however, that the Company shall not utilize this right more than once in
     -------
     any twelve-month period.

     1.12.  Lock-up Agreements.  If requested by the Company and the managing
            ------------------
underwriter, the Holders agree to enter into lock-up agreements pursuant to
which they will not, for a period of 180 days following the effective date of a
registration statement for the initial public offering of the Company's
securities, offer, sell or otherwise dispose of the Registrable Securities,
except the Registrable Securities sold pursuant to such registration statement,
without the prior consent of the Company and the managing underwriter, provided
that the officers, directors and all holders of more than one and one-half
percent (1 1/2%) of the shares of Common Stock (calculated for this purpose as
if all securities convertible into or exercisable for Common Stock, directly or
indirectly, are so converted or exercised) of the Company are required to enter
into such lock-up agreements for the same period and on the same terms. In
addition, if requested by the Company or the managing underwriter, the Holders
agree to enter into lock-up agreements pursuant to which they will not, for a
period of 90 days following the effective date of a registration statement for
any subsequent firmly underwritten public offering of the Company's securities
effected pursuant to Section 1.2, Section 1.3 or Section 1.11 hereof (provided
that registration rights with respect to such registration have been extended to
such Holders to the extent required by Section 1.3 and Section 1.8 herein),
offer, sell or otherwise dispose of the Registrable Securities, except the
Registrable Securities sold pursuant to such registration statement, without the
prior consent of the Company and the underwriter, provided that the officers,
directors and all holders of more than one and one-half percent (1 1/2%) of the
shares of Common Stock (calculated for this purpose as if all securities
convertible into or exercisable for Common Stock, directly or indirectly, are so
converted or exercised) of the Company are required to enter into such lock-up
agreements for the same period and on the same terms.

     1.13.  Assignment of Registration Rights.  The rights to cause the Company
            ---------------------------------
to register Registrable Securities pursuant to this Section 1 (other than those
expressly granted to the Designated Class D Holders and the Requisite Holders
pursuant to Section 1.2(a) or 1.2(b), which are personal to them) may be
assigned by any Holder to a permitted transferee, and by such transferee to a
subsequent permitted transferee, but only if such rights are transferred (i) to
an affiliate, partner or stockholder of such Holder or transferee or an account
managed or advised by the manager or adviser of such Holder or transferee or
(ii) in connection with the sale or other transfer of not less than an aggregate
of 250,000 Registrable Securities or some lesser number, if such lesser number
represents all the Registrable Securities then held by such Holder. Any
transferee to whom rights under this Agreement are transferred shall (a) as a
condition to such transfer, deliver to the Company a written instrument by which
such transferee agrees to be bound by the obligations imposed upon Holders under
this Agreement to the same extent as if she, he or it were a Holder under this
Agreement and (b) be deemed to be a Holder hereunder.

                                       16
<PAGE>

     1.14.  Limitations on Subsequent Registration Rights.  From and after the
            ---------------------------------------------
date of this Agreement, the Company shall not, without the prior written consent
of the Holders of a majority of the Registrable Securities then outstanding,
enter into any agreement with any holder or prospective holder of any securities
of the Company relating to registration rights unless such agreement includes:
(a) to the extent the agreement would allow such holder or prospective holder to
include such securities in any registration filed under Section 1.2, 1.3 or 1.11
hereof, a provision that such holder or prospective holder may include such
securities in any such registration only to the extent that the inclusion of its
securities will not reduce the amount of the Registrable Securities of the
Holders which would otherwise be included; and (b) no provision which would
allow such holder or prospective holder to make a demand registration which
could result in such registration statement being declared effective prior to
the earlier of the dates set forth in subsections 1.2(a) and 1.2(b).

     1.15.  Management Support.  In the event of any underwritten offering
            ------------------
hereunder, in addition to the other requirements hereof, the Company shall cause
its senior management to support such offering with a road show and similar
marketing support customary in such offerings.

2.   Miscellaneous.
     -------------

     2.1.  Legend.  Each certificate representing Registrable Securities shall
           ------
     state therein:

     THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE PROVISIONS OF
     AN AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT, DATED AS OF
     SEPTEMBER 10, 1999 BY AND AMONG THE CORPORATION AND THE INVESTORS NAMED
     THEREIN, A COPY OF WHICH IS ON FILE AT THE OFFICES OF THE CORPORATION.

     2.2.  Notices.  All notices, requests, consents and demands shall be in
           -------
writing and shall be personally delivered, mailed, postage prepaid, telecopied
or telegraphed, to the Company at:

          HOB Entertainment, Inc.
          6255 Sunset Boulevard, 16th Floor
          Hollywood, California  90028

with a copy to the same address to:

          Attn: General Counsel

and to each Holder at its address set out on Exhibit A or Exhibit B or its
signature page hereto, as applicable, or such other address as may be furnished
in writing to the other parties hereto, with a copy to one attorney of any such
Holder as may be designated thereon.  All such notices, requests, demands and
other communication shall, when mailed (registered or certified mail, return
receipt requested, postage prepaid), personally delivered, or telegraphed, be
effective four days after deposit in the mails, when personally delivered, or
when delivered to the telegraph company, respectively, addressed as aforesaid,
unless otherwise provided herein and, when telecopied, shall be effective upon
actual receipt.

                                       17
<PAGE>

     2.3.  Entire Agreement.  This Agreement constitutes the entire agreement of
           ----------------
the parties with respect to the matters contemplated herein. This Agreement
supersedes any and all prior understandings or agreements as to the subject
matter of this Agreement.

     2.4.  Amendments, Waivers and Consents.  Any provision in this Agreement to
           --------------------------------
the contrary notwithstanding, changes in or additions to this Agreement may be
made, and compliance with any covenant or provision herein set forth may be
omitted or waived, if the Company (i) shall obtain consent thereto in writing
from persons holding or having the right to acquire in the aggregate a majority
of the aggregate of the Registrable Securities then outstanding and (ii) shall,
in each such case, deliver copies of such consent (or this Agreement as so
amended) in writing to any holders who did not execute the same. Notwithstanding
the foregoing, any amendment to this Agreement which materially adversely
affects the rights or substantially increases the obligations of any holder of
Registrable Securities and which does not also affect all other holders either
to the same degree or in proportion to the amount of Registrable Securities held
by each of them shall require the consent of such adversely affected holder.

     2.5.  Binding Effect; Assignment.  This Agreement shall be binding upon and
           --------------------------
inure to the benefit of the personal representatives, successors and assigns of
the respective parties hereto.  The Company shall not have the right to assign
its obligations hereunder or any interest herein without obtaining the prior
written consent of the Holders holding a majority of the Registrable Securities
then outstanding, provided in accordance with Section 2.4.

     2.6.  General.  The headings contained in this Agreement are for reference
           -------
purposes only and shall not in any way affect the meaning or interpretation of
this Agreement.  In this Agreement the singular includes the plural, the plural,
the singular, the masculine gender includes the neuter, masculine and feminine
genders.  This Agreement shall be governed by and construed under the laws of
the State of Delaware, without regard to the conflicts of laws provisions
thereof.

     2.7.  Severability.  If any provisions of this Agreement shall be found by
           ------------
any court of competent jurisdiction to be invalid or unenforceable, the parties
hereby waive such provision to the extent that it is found to be invalid or
unenforceable. Such provision shall, to the maximum extent allowable by law, be
modified by such court so that it becomes enforceable, and, as modified, shall
be enforced as any other provision hereof, all the other provisions hereof
continuing in full force and effect.

     2.8.  Counterparts.  This Agreement may be executed in counterparts, all of
           ------------
which together shall constitute one and the same instrument.

     2.9.  Specific Performance.  The Company recognizes that the rights of the
           --------------------
Holders under this Agreement are unique, and, accordingly, the Holders shall, in
addition to such other remedies as may be available to them at law or in equity,
have the right to enforce their rights hereunder by actions for injunctive
relief and specific performance to the extent permitted by law.  This Agreement
is not intended to limit or abridge any rights of the Holders which may exist
apart from this Agreement.

                                       18
<PAGE>

     IN WITNESS WHEREOF, this Amended and Restated Registration Rights Agreement
has been executed as of the date first above written.

                                  COMPANY
                                  -------

                                  HOB ENTERTAINMENT, INC.

                                  By:___________________________________________
                                  Name:
                                  Title:

                                  EXISTING STOCKHOLDERS
                                  ---------------------

                                  By:___________________________________________
                                     Joseph C. Kaczorowski, as attorney-in-fact
                                     to each of the Existing Stockholders listed
                                     on the attached page, pursuant to the
                                     authority granted in the Stockholder
                                     Consent and Waiver executed in connection
                                     with the Consent Solicitation Statement of
                                     the Company dated September 1, 1999.

                                  NEW STOCKHOLDERS
                                  ----------------

                                  CHASE/HOB 1999 PARTNERS (GC), L.L.C.

                                  By:  Chase Venture Capital Associates, L.P.,
                                       Its Managing Member

                                       By:  Chase Capital Partners,
                                            Its General Partner

                                            By:_________________________________
                                            Name:
                                            Title:

                                      S-1
<PAGE>

                                  J.H. WHITNEY III, L.P.

                                  By:  J.H. Whitney Equity Partners III, LLC,
                                       Its General Partner

                                       By:______________________________________
                                       Name:
                                       Title:

                                  WHITNEY STRATEGIC PARTNERS III, L.P.

                                  By:  J.H. Whitney Equity Partners III, LLC,
                                       Its General Partner

                                       By:______________________________________
                                       Name:
                                       Title:

                                  J.H. WHITNEY MARKET VALUE FUND, L.P.

                                  By:  Whitney Market Value GP, Ltd.,
                                       Its General Partner

                                       By:______________________________________
                                       Name:
                                       Title:

                                  FIRST UNION INVESTORS, INC.

                                  By:___________________________________________
                                  Name:
                                  Title:

                                      S-2
<PAGE>

                                  ARES LEVERAGED INVESTMENT FUND, L.P.

                                  By:  Ares Management, L.P.,
                                       Its Manager

                                       By:______________________________________
                                       Name:
                                       Title:

                                  ARES LEVERAGED INVESTMENT FUND II, L.P.

                                  By:  Ares Management, L.P.,
                                       Its Manager

                                       By:______________________________________
                                       Name:
                                       Title:

                                      S-3
<PAGE>

                         ADDITIONAL SIGNATURE PAGE TO
              AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT

     IN WITNESS WHEREOF, this Amended and Restated Registration Rights Agreement
has been executed by the undersigned as of ___________________________, 1999.

INDIVIDUAL INVESTOR:              ________________________________________
                                  (Signature)

                                  ________________________________________
                                  (Printed Name)

CORPORATE OR PARTNERSHIP          ________________________________________
INVESTOR:                         (Name of Corporation or Partnership)

                                  By:_____________________________________
                                     Name:________________________________
                                     Title:_______________________________

TRUST INVESTOR:                   ________________________________________
                                  (Full Name of Trust)

                                  By:_____________________________________
                                     (Signature of Trustee)

Address for Notice
------------------

_________________
_________________
_________________

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