Document:

Second Amendment to the Securities Purchase Agreement

 EXHIBIT 10.70 
  
 SECOND AMENDMENT 
 TO 
 SECURITIES PURCHASE AGREEMENT 
  
 THIS SECOND AMENDMENT, dated as of December 29, 2004 (the “Amendment”), to the Securities Purchase
Agreement by and among FiberNet Telecom Group, Inc., a corporation organized under the laws of the State of Delaware (the “Company”), and each of the purchasers (individually, a “Purchaser” and collectively the
“Purchasers”) set forth on the execution pages thereof, dated as of December 10, 2004 (as amended by the First Amendment to the Securities Purchase Agreement, dated as of December 15, 2004, the “Agreement”), is made
by and among the Company and the Purchaser. Capitalized terms not defined herein shall have the meanings ascribed to them in the Agreement. 
  
 BACKGROUND 
  
 In consideration of the mutual promises herein contained, and for good and valuable consideration, the sufficiency of which is hereby acknowledged, the
parties to this Amendment, intending to be legally bound, hereby agree that the Agreement is amended to provide as follows: 
  
 1. In Exhibit A of the Agreement, the first sentence of Article V, Paragraph A of the Certificate of Designation is hereby amended to replace “First
Stockholder Meeting” with “Second Stockholder Meeting”. 
  
 2. In Exhibit A of the Agreement, Article XIV, Paragraph A of the Certificate of Designation is hereby amended, restated and replaced in its entirety as follows: 
  
 “A. Cap Amount Applicable to Conversions and Payment of Dividends and Amounts Due Under the
Registration Rights Agreement in Shares of Common Stock. If the Corporation is prohibited by Rule 4350(i) of the Nasdaq Stock Market, Inc., or any successor or similar rule, from issuing a number of shares of Common Stock upon conversion of
Series K Preferred Stock pursuant to Article V or as payment of any Dividend or amounts due under this Certificate of Designations or the Registration Rights Agreement in shares of Common Stock pursuant to Article IV (together with any shares of
Common Stock issued pursuant to the Securities Purchase Agreement or other agreements entered into in connection with the transactions contemplated thereby) in excess of a prescribed amount (the “Cap Amount”) (without stockholder
approval or otherwise), then the Corporation shall not issue shares upon conversion of Series K Preferred Stock or shares of Common Stock as payment of any Dividend or amounts due under this Certificate of Designation or the Registration Rights
Agreement in excess of the Cap Amount. Notwithstanding anything contained herein, the Cap Amount shall apply for as long as the Series K Preferred Stock is outstanding unless stockholder approval to exceed the Cap Amount is received. Assuming solely
for purposes of this Paragraph A that such Rule 4350(i) or similar rule is applicable, the Cap Amount shall be 19.99% of the Common Stock outstanding immediately prior to the Issuance Date. 
  

 The Cap Amount shall be allocated pro rata to the holders of Series K Preferred Stock as provided in
Article XV.C. In the event that, at any time from and after the Issuance Date, the Corporation is prohibited from issuing shares of Common Stock as payment of any Dividend or amounts due under the Registration Rights Agreement as a result of the
operation of this Paragraph A, the Corporation shall, subject to Article XV, pay such Dividend and amounts due under the Registration Rights Agreement in cash. In the event that, at any time from and after the conclusion of the Second Stockholder
Meeting (as that term is defined in the Securities Purchase Agreement), the Corporation is prohibited from issuing shares of Common Stock upon conversion of Series K Preferred Stock as a result of the operation of this Paragraph A, the Corporation
shall immediately notify the holders of Series K Preferred Stock of such occurrence and each holder of Series K Preferred Stock shall thereafter, subject to Article XV, have the option, exercisable in whole or in part at any time and from time to
time, by delivery of a Redemption Notice to the Corporation, to require the Corporation to redeem for cash, at an amount per share equal to the amount calculated pursuant to Article VIII.B(ii), a number of the holder’s shares of Series K
Preferred Stock such that, after giving effect to such redemption, the then unissued portion of such holder’s Cap Amount is equal to one hundred percent (100%) of the total number of shares of Common Stock issuable upon conversion of such
holder’s shares of Series K Preferred Stock. If the Corporation fails to redeem any of such shares within five business days after its receipt of such Redemption Notice, then such holder shall, subject to Article XV, be entitled to the remedies
provided in Article VIII.C.” 
  
 3. In Exhibit B of the
Agreement, the first sentence of Section 1, Paragraph (a) of the Warrant is hereby amended to replace “First Stockholder Meeting” with “Second Stockholder Meeting”. 
  
 4. In Exhibit B of the Agreement, the first sentence of Section 10, Paragraph (a) of the Warrant is hereby amended, restated
and replaced in its entirety as follows: 
  
 “If the Company is prohibited by Rule 4350(i) of the Nasdaq Stock Market, Inc., or any successor or similar rule, from issuing a number of shares of Common Stock upon exercise of this Warrant (together with any shares of Common Stock
issued pursuant to other securities issued pursuant to the Securities Purchase Agreement or other agreements entered in connection therewith) in excess of a prescribed amount (the “Cap Amount”) (without stockholder approval or
otherwise), then the Company shall not issue shares upon any such exercise in excess of the Cap Amount. Notwithstanding anything contained herein, the Cap Amount shall apply for as long as the Warrants are outstanding unless stockholder approval to
exceed the Cap Amount is received. 
  
 5. Under Section 4(aa) of
the Agreement, amendments, modifications, changes and waivers of certain provisions of the Con Ed Agreement are not permitted or given effect unless they are made with the prior written consent of the Purchasers. As a result and in order to permit
the execution of this Amendment, the Purchaser, being the sole Purchaser under the Agreement, hereby consents to any and all amendments, modifications, changes and waivers by Con Ed and/or the Company of the provisions of the Con Ed Agreement
(including, without limitation, 

  

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any representations and warranties, covenants and conditions to Con Ed’s obligation to close under the Con Ed Agreement) solely with respect to
including within the coverage of such provisions, and permitting the execution of, this Amendment and the amendments to the Agreement effected hereby. 
  
 6. This Amendment constitutes the entire agreement between the parties concerning the subject matter hereof. In the event of any conflict, ambiguity or
inconsistency between the provisions of this Amendment and the Agreement, the provisions of this Amendment shall prevail. The remainder of the Agreement shall remain in full force and effect, unamended. 
  
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 IN WITNESS WHEREOF, the undersigned Purchaser and the Company have caused this Amendment to be
duly executed as of the date first above written. 
  

			
	FIBERNET TELECOM GROUP, INC.
		
	By:	 	 
	 Name:
	 	 
	 Title:
	 	 

  

			
	PURCHASER:
	
	SDS CAPITAL PARTNERS, LLC
		
	By:	 	 
	 Name:
	 	 
	 Title:Consulting Agreement dated February 1, 2005

 EXHIBIT 10.71 
  
 CONSULTING AGREEMENT 
  
 This Consulting Agreement (“Agreement”) is made and entered into as of February 1, 2005 (the “Effective Date”) by and
between FiberNet Telecom Group, Inc., a Delaware corporation, having its principal place of business at 570 Lexington Avenue, 3rd Floor, New York, New York 10022 (“FiberNet”), and ML Capital Services, LLC, a New York limited
liability company (“Consultant”). 
  
 BACKGROUND 
  
 WHEREAS, Michael S. Liss,
the managing member of Consultant (“Liss”), resigned as President and Chief Executive Officer of FiberNet on January 31, 2004 (the “Resignation Date”). 
  
 WHEREAS, Liss has retained his position as Chairman of the Board of Directors of FiberNet (the
“Board”). 
  
 WHEREAS, FiberNet desires to
obtain Consultant’s advice and counsel with respect to FiberNet’s ongoing business activities. 
  
 NOW THEREFORE, in consideration of the mutual covenants and promises made herein, the parties agree as follows: 
  

	1.	SERVICES AND AUTHORITY 

  
 1.1 Services. FiberNet hereby retains Consultant to perform the tasks and responsibilities reasonably specified by the Board from time to time.
Specifically, Consultant shall provide general financial advisory services, including, without limitation, assisting FiberNet in analyzing and evaluating its business, operations and financial position in connection with potential strategic
transactions and public or private placements of debt or equity securities. Consultant shall devote reasonable business time, attention and energies to the performance of his responsibilities under this Agreement. Consultant represents and warrants
that the services will be performed in accordance with industry standards and in compliance with all applicable laws. 
  
 1.2 Independent Contractor. FiberNet and Consultant expressly acknowledge and agree that no employment, partnership or joint venture relationship
is created by this Agreement. Consultant shall act at all times as an independent contractor under this Agreement, and FiberNet is not liable for employment or withholding taxes respecting Consultant. Consultant is free to contract with, and provide
services to, any third parties. Except as otherwise expressly provided for in this Agreement and in the compensation plan for the Board, Consultant will not receive or be entitled to receive any compensation or benefits of any kind from FiberNet.
Further, Consultant has no right, power or authority to bind or obligate FiberNet in any manner whatsoever or to affix his/its name or signature on behalf of FiberNet. 
  
 1.3 No Commitment. The parties expressly acknowledge that this Agreement is not an exclusive agreement for any
services. This Agreement does not constitute any commitment by FiberNet to consummate any financing or strategic transaction, and FiberNet will determine in its sole and absolute discretion whether or not (and on what terms) to consummate any
financing or strategic transaction. 
  

 1.4 Special Procedures. Consultant recognizes that, in his capacities as Chairman of the Board and
as a consultant of FiberNet, certain conflicts of interest may arise. Consultant therefore expressly acknowledges that he has certain duties and obligations under Delaware General Corporation Law that arise by virtue of such capacities, including,
without limitation, a duty to recuse himself at the request of the Board from any Board discussion, resolution, written consent or other consideration concerning (a) the terms of this Agreement, including, without limitation, any compensation to be
paid hereunder, and (b) any corporate action that could reasonably implicate this Agreement or otherwise give rise to a potential conflict of interest with respect to such capacities. 
  

	2.	TERM AND TERMINATION 

  
 The term of this Agreement commences on the Effective Date and terminates six months after the Effective Date. This Agreement is subject to renewal upon mutual written agreement of the parties. If Consultant commits a
material breach of this Agreement, then FiberNet may terminate this Agreement upon thirty days’ prior written notice and opportunity to cure. 
  

	3.	COMPENSATION 

  
 3.1 Fees. FiberNet shall pay Consultant $200,000.00 per annum in connection with the services rendered pursuant to this Agreement, which fee is
payable in bi-weekly installments. In addition, Consultant may receive (as may be determined by the Board, subject to the written approval of the Board upon the affirmative recommendation of the Audit Committee) additional compensation in connection
with Consultant’s advisory services pursuant to a separate written agreement between the Parties. The foregoing compensation is in addition to, and not in lieu of, any and all compensation that Consultant may receive from FiberNet in his
capacity as a member of the Board. 
  
 3.2 Benefits. Until
the expiration of Consultant’s COBRA period (i.e., eighteen months following the Resignation Date), FiberNet shall reimburse Consultant for all premiums payable in connection with Consultant’s continuing participation in the medical
and dental insurance plans that are provided by FiberNet from time to time to its executive officers. FiberNet shall also continue to pay all premiums associated with the life and disability insurance policies that FiberNet maintained for
Consultant’s benefit as of the Resignation Date. 
  
 3.3
Office Space. FiberNet shall provide Consultant with reasonable office space (including usage of a computer and telephone) in connection with performing services under this Agreement. 
  
 3.4 Expenses. FiberNet shall reimburse Consultant for all reasonable
and necessary travel expenses incurred by him on behalf of FiberNet in connection with the performance of his duties hereunder upon presentation of receipts therefor. 
  

	4.	INDEMNIFICATION 

  
 4.1 FiberNet shall indemnify and hold Consultant harmless from and against any and all losses, claims, damages, liabilities, expenses (including legal
fees and expenses), judgments, fines, settlements and other amounts (collectively, “Losses”) arising from any and all claims, demands, actions, suits or proceedings, civil, criminal, administrative or investigative (collectively,
“Claims”) in which Consultant is involved as a party or otherwise by reason of 

  

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this Agreement but only to the extent that Consultant’s conduct in respect of any such Claim does not constitute or involve gross negligence or willful
misconduct. 
  
 4.2 Consultant shall indemnify and hold FiberNet
harmless from and against any and all Losses arising from any and all Claims in which FiberNet is involved as a party or otherwise by reason of Consultant’s gross negligence or willful misconduct under this Agreement. 
  
 4.3 The rights to indemnification set forth herein are not exclusive of any
other rights to which the indemnified party may be contractually or legally entitled. The terms of this Section 4 will survive the termination or expiration of this Agreement and inure to the benefit of each Party’s successors and assigns.

  

	5.	LIMITATION OF LIABILITY 

  
 EXCLUDING ANY AMOUNTS DUE AND PAYABLE HEREUNDER PURSUANT TO SECTION 3 HEREOF OR ANY LIABILITY INCURRED IN CONNECTION WITH ANY INDEMNIFICATION OBLIGATIONS OR INTENTIONAL
BREACHES OF CONFIDENTIALITY HEREUNDER, IN NO EVENT WILL EITHER PARTY BE LIABLE TO THE OTHER FOR (A) ANY INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL, PUNITIVE OR EXEMPLARY DAMAGES OR LOSSES REGARDLESS OF THE FORM OF ACTION OR WHETHER OR NOT SUCH
DAMAGES WERE FORESEEN OR UNFORESEEN OR (B) DIRECT DAMAGES IN EXCESS OF $200,000. 
  

	6.	GENERAL PROVISIONS 

  
 6.1 Confidentiality. Consultant acknowledges that FiberNet may disclose confidential information (“Confidential Information”) to
him in connection with his performance under this Agreement. Consultant agrees to: (a) use or disclose Confidential Information solely for the purpose of performing his obligations under this Agreement; (b) use all reasonable precautions to keep
Confidential Information secret and to prevent its disclosure to third parties without the prior written consent of FiberNet; and (c) return all Confidential Information promptly upon FiberNet’s request or upon any termination of this
Agreement. 
  
 6.2 Construction and Interpretation. This
Agreement is governed by the laws of the State of New York without regard to conflict of law principles. The parties hereby consent to jurisdiction and venue in the federal and state courts of the State of New York, located in the City of New York.
In the event that any term or provision of this Agreement is found to be unenforceable in a court of law for any reason, it will be replaced by an enforceable provision to the same or nearest possible equivalent effect and the remainder of this
Agreement will not be affected thereby. 
  
 6.3
Miscellaneous. This Agreement represents the entire understanding of the parties with respect to the specific matter of this Agreement and supersedes all previous understandings, written or oral, between the parties with respect to the
subject matter. This Agreement may only be amended by a writing executed by both parties. Failure by FiberNet or Consultant to insist upon the other party’s compliance with any provision in this Agreement shall not be deemed a waiver of such
provision. This Agreement may be executed by the parties on any number of separate counterparts, and all of these counterparts taken together will be deemed to constitute one and the same instrument. 
  
 * * * * 
  

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 IN WITNESS WHEREOF, FiberNet and Consultant have caused this Agreement to be signed by their authorized
representatives. 
  

			
	 FIBERNET TELECOM GROUP, INC.

		
	By:	 	 
	 Name:
	 	 
	 Title:
	 	 

  

			
	 ML CAPITAL SERVICES, LLC

		
	By:	 	 
	 Name:
	 	 
	 Title:

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