Document:

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                                                                     EXHIBIT 4.9

                     AMENDMENT TO STOCK PURCHASE AGREEMENTS

         THIS AMENDMENT TO STOCK PURCHASE AGREEMENTS, dated as of June 25, 1999,
is made and entered into between I3S FUNDING I, LLC, a North Carolina limited
liability company ("FUNDING"), BLUE RIDGE INVESTORS LIMITED PARTNERSHIP, a North
Carolina limited partnership ("BLUE RIDGE"), SPOTSWOOD CAPITAL, LLC, a North
Carolina limited liability company ("SPOTSWOOD") (Funding, Blue Ridge and
Spotswood are collectively referred to herein as the "PURCHASERS"); I 3S, INC.,
a Texas corporation (the "COMPANY"); and JAMES R. PRICE, GARY A. DOBBINS, CLAY
C. SCOTT, JR., CHARLES BO PRICE and GEORGE VENNER (the "SHAREHOLDERS").

                                   WITNESSETH:

         WHEREAS, Funding, the Company, the Shareholders and, in certain
instances, Blue Ridge and Spotswood entered into those certain Stock Purchase
Agreements, dated as of April 4, 1997, March 31, 1998 (as amended June 30,
1998), and December 30, 1998, respectively (the "FUNDING AGREEMENTS"), whereby
Funding purchased an aggregate of 4,979,777 shares of Class B Common Stock, no
par value per share, of the Company (the "CLASS B COMMON STOCK"); and

         WHEREAS, Blue Ridge, the Company, the Shareholders, and in certain
instances, Spotswood entered into those certain Stock Purchase Agreements, dated
as of July 10, 1998, and December 30, 1998, respectively (the "BLUE RIDGE
AGREEMENTS"), whereby Blue Ridge purchased an aggregate of 1,037,232 shares of
Class C Common Stock, no par value per share, of the Company (the "CLASS C
COMMON STOCK"); and

         WHEREAS, Spotswood, the Company the Shareholders, and in certain
instances, Blue Ridge entered into those certain Stock Purchase Agreements,
dated as of July 10, 1998, and December 30, 1998, respectively (the "SPOTSWOOD
AGREEMENTS"), whereby Spotswood purchased an aggregate of 1,037,232 shares of
Class C Common Stock; and

         WHEREAS, the Company desires to sell up to 2,925,532 shares of Series A
Convertible Preferred Stock, no par value per share, of the Company (the
"PREFERRED STOCK") in a private placement (the "PRIVATE PLACEMENT"); and

         WHEREAS, the preferences, limitations and rights of the Class A Common
Stock, no par value per share, of the Company (the "CLASS A COMMON STOCK"), the
Class B Common Stock and the Class C Common Stock (the Class A Common Stock,
Class B Common Stock and Class C Common Stock are collectively referred to
herein as the "COMMON STOCK") must be amended in order to effectuate the Private
Placement; and

<PAGE>   2

         WHEREAS, the Company and the Purchasers entered into that certain
letter agreement dated as of March 2, 1999, as amended April 29, 1999, whereby
they agreed to amend the documentation pertaining to the Class B and Class C
Common Stock to effectuate the Private Placement; and

         WHEREAS, the Company and the Purchasers desire to document the
amendments to the preferences, limitations and rights of the Common Stock.

         NOW, THEREFORE, in consideration of the foregoing and the mutual
agreements, representations and warranties contained in the Funding Agreements,
Blue Ridge Agreements and Spotswood Agreements (collectively referred to herein
as the "PURCHASE AGREEMENTS") and in this Amendment, the parties hereto agree as
follows:

         1. Effectiveness. This Amendment shall be effective as of the date
first above written.

         2. Amendments to Purchase Agreements. To reflect the amendments to the
preferences, limitations and rights of the Common Stock, the Purchase Agreements
are hereby amended as follows:

                        (a) Section 2.b. of the Purchase Agreements is amended
                  to read in its entirety as follows:

            "b. Preemptive Rights/Definitions.

                i. The Class B Common Stock and Class C Common Stock shall have
            the preemptive rights set forth in the Company's Amended and
            Restated Articles of Incorporation.

                ii. For purposes of this Agreement, the "1933 Act" shall mean
            the Securities Act of 1933, as amended.

                iii. For purposes of this Agreement, a "Purchaser Approved
            Offering" shall have the same meaning as "Approved Offering" as
            defined in the Company's Amended and Restated Articles of
            Incorporation."

                        (b) Section 2.c. of the Purchase Agreements is amended
                  to read in its entirety as follows:

                "c. Right of First Refusal. The Class B Common Stock and Class C
            Common Stock shall be entitled to the right of first refusal as set
            forth in the Company's Amended and Restated Articles of
            Incorporation."

                        (c) Section 2.d.ii of the Funding Agreements is amended
                  to read in its entirety as follows:

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                "ii. At any time after April 4, 2002, Purchaser may require the
            Company, at the Company's expense, to register up to two (2) primary
            or secondary offerings of the Company's common stock (including
            Purchaser's Common Shares) to the extent legally permissible.
            Purchaser shall give the Company written notice of any exercise of
            this right, and the Company shall have up to one (1) year from the
            date of receipt of such notice to effect such registration."

                        (d) The first paragraph of Subsection 2.e.i. of the
                  Funding Agreements is amended to read in its entirety as
                  follows:

                "i. At any time after April 4, 2001, and before the consummation
            of a Purchaser Approved Offering, if a bona fide offer is made by
            any person (other than Purchaser, or any person or entity related to
            or affiliated with Purchaser), to purchase all or substantially all
            of the assets or shares of stock of the Company, and Purchaser gives
            the Company written notice that it desires such offer to be
            accepted, the Company and its shareholders shall either accept the
            offer and consummate the sale on the terms and conditions of the
            offer, or the Company shall acquire all the equity interests owned
            by Purchaser in the Company on the same terms and conditions as the
            offer; provided, however, that if such offer is made prior to April
            4, 2003, the Company shall have no such obligation unless the total
            consideration of such offer is at least $350,000,000."

                        (e) The first paragraph of Subsection 2.e.i. of the Blue
                  Ridge Agreements and the Spotswood Agreements is amended to
                  read in its entirety as follows:

                "i. At any time after April 4, 2001, and before the consummation
            of a Purchaser Approved Offering, if a bona fide offer is made by
            any person (other than Purchaser, or any person or entity related to
            or affiliated with Purchaser), to purchase all or substantially all
            of the assets or shares of stock of the Company, and Funding gives
            the Company written notice that it desires such offer to be
            accepted, the Company and its shareholders shall either accept the
            offer and consummate the sale on the terms and conditions of the
            offer (in which case, if the transaction is a stock sale or merger,
            Purchaser also shall sell all of its equity interests in the Company
            on those terms and conditions), or the Company shall acquire all the
            equity interests owned by Purchaser and Funding in the Company on
            the same terms and conditions as the offer; provided, however, that
            if such offer is made prior to April 4, 2003, the Company shall have
            no such obligation unless the total consideration of such offer is
            at least $350,000,000. If at any time Funding approves the sale of
            substantially all of the assets or shares of stock of the Company,
            then Purchaser shall vote its shares in favor of the Transaction so
            approved, or if the transaction is a stock sale or merger, then
            Purchaser shall sell all of its equity interests in the Company on
            the terms and conditions so approved."

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                        (f) Subsection 2.e.ii. of the Purchase Agreements is
                  deleted in its entirety.

                        (g) Subsection 2.f. of the Purchase Agreements is
                  amended to read in its entirety as follows:

                "f. Right of Co-Sale. In addition to the rights set forth in
            Section 2.c., at any time prior to the consummation of a Purchaser
            Approved Offering, Purchaser shall have the right to participate pro
            rata to the fullest extent of its equity interest in the Company in
            any sale or transfer of stock, by any holder of shares of Class A
            Common Stock to any third party."

                        (h) Subsection 2.g.iii. of the Stock Purchase Agreements
                  is amended to read in its entirety as follows:

                "iii. INTENTIONALLY LEFT BLANK."

                Subsection 2.g.iv. of the Stock Purchase Agreements is amended
to read in its entirety as follows:

                "iv. INTENTIONALLY LEFT BLANK."

                        (i) Section 2.i. of the Funding Agreements is amended to
                  add the following as the second paragraph thereof:

                "Upon the consummation of a Purchaser Approved Offering and the
            related conversion of the Class B Shares to Class A Common Stock,
            the Board of Directors will nominate Purchaser's designee, so long
            as such designee is reasonably qualified, and recommend in the
            Company's proxy statement that the shareholders vote for such
            designee. Purchaser shall have such right so long as Purchaser
            continues to hold at least 2,489,889 shares of Class A Common Stock
            attributable to the Class B Common Stock (subject to adjustment for
            subdivisions, combinations, dividends, distributions,
            recapitalizations, reclassifications or other changes as set forth
            in the Company's Amended and Restated Articles of Incorporation)."

                        (j) Section 2.i. of the Blue Ridge Agreements and the
                  Spotswood Agreements is amended to add the following as the
                  second paragraph thereof:

                "Upon the consummation of a Purchaser Approved Offering and the
            related conversion of the Class B Common Stock to Class A Common
            Stock, the Board of Directors will nominate Funding's designee, so
            long as such designee is reasonably qualified, and recommend in the
            Company's proxy statement that the shareholders vote for such
            designee. Funding shall have such right so long as Funding continues

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            to hold at least 2,489,889 shares of Class A Common Stock
            attributable to the Class B Common Stock (subject to adjustment for
            subdivisions, combinations, dividends, distributions,
            recapitalizations, reclassifications or other changes as set forth
            in the Company's Amended and Restated Articles of Incorporation)."

                        (k) The following is added as new Section 2.j. of the
                  Funding Agreements:

                "j. Conversion. Upon the occurrence of a Purchaser Approved
            Offering, each share of Class B Common Stock held by Purchaser shall
            immediately and automatically be converted into an equal number of
            fully paid and nonassessable shares of Class A Common Stock pursuant
            to the Company's Amended and Restated Articles of Incorporation."

                        (l) The following is added as new Section 2.j. of the
                  Blue Ridge Agreements and the Spotswood Agreements:

                "j. Conversion. Upon the occurrence of a Purchaser Approved
            Offering, each share of Class C Common Stock held by Purchaser shall
            immediately and automatically be converted into an equal number of
            fully paid and nonassessable shares of Class A Common Stock pursuant
            to the Company's Amended and Restated Articles of Incorporation."

                        (l) Section 5.c. of the Purchase Agreements is amended
                  to read in its entirety as follows:

                "c. Delivery of Financial Materials. The Company shall deliver
            to Purchaser (i) within forty-five (45) days of the end of each
            calendar quarter, quarterly and year-to-date balance sheet and
            statements of income, changes in stockholders equity, and cash flow
            prepared in accordance with GAAP and certified by the Company's
            Chief Financial Officer, except such financial statements shall not
            contain normal and recurring year end audit adjustments;(ii) within
            one hundred twenty (120) days after the fiscal year end, an annual
            independent certified audit from an outside accounting firm
            reasonably designated by the Company; and (iii) as soon as
            practicable, but no later than thirty (30) days after the beginning
            of each fiscal year, beginning January 1, 2000, the Company shall
            provide to the Purchaser a copy of the annual budget and plan for
            such year which shall include, without limitation, plans for
            incurrence of indebtedness for borrowed money and projections
            regarding types of sources of funds, monthly projected capital and
            operating expense budgets and cash flow projections."

         3. Amended and Restated Articles of Incorporation. The Purchasers agree
to sign a Unanimous Written Consent in substantially the form attached hereto as
EXHIBIT "A"

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simultaneously with the execution of this Amendment. The Unanimous Written
Consent shall approve those certain Amended and Restated Articles of
Incorporation (which further amend and provide for the preferences, limitations
and rights of the Common Stock) (the "COMPANY'S AMENDED AND RESTATED ARTICLES OF
INCORPORATION") the form of which is attached as EXHIBIT "A" to the Unanimous
Written Consent. The Purchasers agree not to revoke or terminate such consent
unless the prior written consent of the Company has been obtained.

         4. Waiver of Certain Rights. Purchasers hereby waive their right of
co-sale and any preemptive right they may have with respect to the sale of the
Preferred Stock in the Private Placement, the issuance of additional shares of
Preferred Stock as dividends thereon, and the issuance of the Class A Common
Stock on the conversion thereof.

         5. Definitive Agreement. This Amendment constitutes the definitive
documentation of the Class B Common Stock and Class C Common Stock amendments
contemplated by that certain letter agreement dated March 2, 1999, as amended
April 29, 1999, by and between Funding, Blue Ridge, Spotswood and the Company
(collectively, the "LETTER AGREEMENT"). The Letter Agreement is superseded by
this Amendment and shall no longer be deemed in force or effect.

         6. Miscellaneous. Except as expressly amended by this Amendment, all
the terms and provisions of the Purchase Agreements shall remain unmodified and
in full force and effect. This Amendment, together with the Purchase Agreements,
represents the entire agreement of the parties with respect to the matters
addressed herein, and may not be modified or amended except by the written
agreement of all parties. This Amendment may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument. This Amendment shall be
governed by and construed in accordance with the laws of the State of North
Carolina.

                [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

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         IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed by their duly authorized representatives as of the date first above
written.

                                        I 3S, INC.

                                        By: /s/ James R. Price
                                           -----------------------------------
                                           Name: James R. Price
                                                ------------------------------
                                           Its:  President
                                               -------------------------------

                                        I3S FUNDING I, L.L.C.

                                        By: GENEVA ASSOCIATES, L.L.C.,
                                            Manager

                                        By: /s/ Russ R. Myers
                                           -----------------------------------
                                           Name: Russ R. Myers
                                                ------------------------------
                                           Its:  Member-Manager
                                               -------------------------------

                                        BLUE RIDGE INVESTORS LIMITED
                                        PARTNERSHIP

                                        By: Blue Ridge Investors Group, Inc.,
                                            General Partner

                                        By: /s/ Russ R. Myers
                                           -----------------------------------
                                           Russ R. Myers, President

                                        SPOTSWOOD CAPITAL, LLC

                                        By: /s/ William J. Armfield IV
                                           -----------------------------------
                                            William J. Armfield IV,
                                            Member-Manager

                                       -7-

<PAGE>   8

                                               SHAREHOLDERS:

                                               /s/ James R. Price
                                               -------------------------------
                                               JAMES R. PRICE

                                               /s/ Gary A. Dobbins
                                               -------------------------------
                                               GARY A. DOBBINS

                                               /s/ Clay C. Scott, Jr.
                                               -------------------------------
                                               CLAY C. SCOTT, JR.

                                               /s/ Charles Bo Price
                                               -------------------------------
                                               CHARLES BO PRICE

                                               /s/ George Venner
                                               -------------------------------
                                               GEORGE VENNER

                                       -8-

<PAGE>   9

                                   EXHIBIT "A"

                            UNANIMOUS WRITTEN CONSENT

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                                                                    EXHIBIT 4.10

                           FIRST AMENDED AND RESTATED
                          REGISTRATION RIGHTS AGREEMENT

         THIS FIRST AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT (this
"Agreement") is made as of this   day of January 2000, by and among
BroadbandNOW, Inc., a Delaware corporation (the "Company") and each of the
purchasers listed on SCHEDULE 1, attached hereto (collectively, the "Purchasers"
and each individually a "Purchaser").

                              W I T N E S S E T H:

         WHEREAS, the Company assumed all of the obligations of BroadbandNOW
Texas, Inc. f/k/a I 3S, Inc., a Texas corporation ("BroadbandNOW Texas"), with
respect to a Registration Rights Agreement, dated as of June 25, 1999, between I
3S, Inc., Nortel Networks Inc., Ascend Communications, Inc., Blue Ridge
Investors II Limited Partnership, I3S Funding I, LLC and Blue Ridge Investors
Limited Partnership; a Registration Rights Agreement, dated as of October 29,
1999, between I 3S, Inc. and General Electric Capital Corp.; a Registration
Rights Agreement, dated November 2, 1999, between I 3S, Inc., Archstone
Communities Trust and Archstone Communities Investment LLC-I; a Registration
Rights Agreement, dated November 24, 1999, between I 3S, Inc. and Microsoft
Corporation; and a Registration Rights Agreement, dated January 6, 2000 between
I 3S, Inc. and Telecommunications Investments LLC, TeleNet Capital Group, LLC
and Summit Properties, Inc. (collectively, the "Previous Agreements") related to
the Company's Series A Convertible Preferred Stock, par value $0.001 per share
(the "Series A Convertible Preferred Stock");

         WHEREAS, pursuant to a Stock Purchase Agreement, dated as of August 10,
1999, Paradigm/I3S, L.P. purchased a portion of the Series A Convertible
Preferred Stock owned by I3S Funding I, LLC and Blue Ridge Investors Limited
Partnership and obtained the rights granted to I3S Funding I, LLC and Blue Ridge
Investors Limited Partnership pursuant to the Previous Agreements; and

         WHEREAS, Liberty BBandnow Holdings, LLC and the Company are parties to
that certain Series A Convertible Preferred Stock Purchase Agreement, dated as
of the date hereof (the "Purchase Agreement"), whereby Liberty BBandnow
Holdings, LLC shall purchase and the Company shall issue and sell 1,063,829
shares of Series A Convertible Preferred Stock; and

         WHEREAS, the obligations of Liberty BBandnow Holdings, LLC under the
Purchase Agreement are conditioned among other things, upon the execution and
delivery of this Agreement by the Purchasers and the Company; and

         WHEREAS, the Purchasers and the Company desire to amend and restate the
Previous Agreements to replace them with a single agreement; and

<PAGE>   2

         WHEREAS, this Agreement will become effective upon the consent of at
least 66 2/3% of the outstanding shares of Series A Convertible Preferred Stock.

         NOW, THEREFORE, in consideration of the premises and mutual covenants
herein contained, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the undersigned parties hereto
agree that this Agreement supersedes the Previous Agreements in their entirety
and the parties hereto agree as follows:

         1. DEFINITIONS. As used in this Agreement, the following terms shall
have the following respective meanings:

                  (a) "Commission" shall mean the United States Securities and
Exchange Commission, or any other federal agency at the time administering the
Securities Act.

                  (b) "Common Stock" shall mean the Company's Class A Common
Stock, par value $0.001 per share, as authorized on the date of this Agreement
or class of common stock issued in exchange therefor.

                  (c) "Conversion Shares" shall mean the shares of Common Stock
issued or issuable upon conversion of the Series A Convertible Preferred Stock.

                  (d) "Exchange Act" shall mean the Securities Exchange Act of
1934, as amended, or any similar federal statute, and the rules and regulations
of the Commission thereunder, all as the same shall be in effect at the time.

                  (e) "Forms S-1, S-2 and S-3" shall mean the forms so
designated, promulgated by the Commission for registration of securities under
the Securities Act, and any forms succeeding to the functions of such forms,
whether or not bearing the same designation.

                  (f) "Holder" shall mean a holder of Registrable Securities
provided that anyone who acquires any Registrable Securities in a distribution
pursuant to a registration statement filed by the Company under the Securities
Act shall not thereby be deemed to be a "Holder".

                  (g) "Person" shall mean an individual, a corporation, a
partnership, a limited liability company, a joint venture, a trust, an estate,
an unincorporated organization, a government or any agency or political
subdivision thereof.

                  (h) "Recapitalization Events" shall mean an event described
under Section 2.5 of the Certificate of Designation (as hereinafter defined).

                  (i) "Register," "registered" and "registration" refers to a
registration effected by filing a registration statement in compliance with the
Securities Act and the declaration or ordering by the Commission of
effectiveness of such registration statement.

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<PAGE>   3

                  (j) "Registrable Securities" shall mean (i) Conversion Shares
held by (x) a Purchaser, (y) a purchaser of Series A Convertible Preferred
Stock, or (z) a Person to whom registration rights have been properly
transferred, (ii) all shares of Common Stock issued by the Company in respect of
the Series A Convertible Preferred Stock, and (iii) all shares of Common Stock
which the Purchasers or a purchaser of the Company's Series A Convertible
Preferred Stock or BroadbandNOW Texas' Series A Convertible Preferred Stock may
purchase pursuant to their rights of first refusal.

                  (k) "Required Demand Amount" shall mean at least fifty-one
percent (51%) of the Registrable Securities then outstanding with respect to the
registration effected pursuant to Section 2 (assuming the full conversion of the
Series A Convertible Preferred Stock for this purpose).

                  (l) "Securities Act" shall mean the Securities Act of 1933, as
amended, or any similar federal statute, and the rules and regulations of the
Commission thereunder, all as the same shall be in effect at the time.

         2. REQUIRED REGISTRATION.

                  (a) Subject to the provisions of Section 4 hereof, the Holder
or Holders of an aggregate of at least the Required Demand Amount (such Holder
or Holders being herein called the "Initiating Holders") may request the Company
in writing to effect under the Securities Act a registration, stating the number
of shares of Registrable Securities to be disposed of by such Initiating Holders
and the intended method of disposition. Upon receipt of such request, the
Company will give prompt written notice thereof to all other Holders whereupon
such other Holders shall give written notice to the Company within 20 days after
the date of the Company's notice (the "Notice Period") if they propose to
dispose of any shares of Registrable Securities pursuant to such registration,
stating the number of shares of Registrable Securities to be disposed of by such
Holder or Holders and the intended method of disposition.

                  (b) The Company will use commercially reasonable efforts to
effect promptly after the Notice Period the registration under the Securities
Act of all shares of Registrable Securities specified in the requests of the
Initiating Holders and the requests of the other Holders, subject, however, to
the limitations set forth in Section 4 hereof.

         3. REGISTRATION PROCEDURES. Whenever the Company is required by the
provisions of this Agreement to use commercially reasonable efforts to effect
promptly the registration of shares of Registrable Securities, the Company will
use commercially reasonable efforts to :

                  (a) prepare and file with the Commission a registration
statement with respect to such Registrable Securities and prepare and file with
the Commission such amendments and post-effective amendments to the registration
statement as may be necessary to keep the registration statement effective for
the period necessary to complete the proposed distribution; cause the prospectus
to be supplemented by any required prospectus supplement, and as so supplemented
to be filed pursuant to Rule 424 under the Securities Act, and to comply fully
with the applicable provisions of Rules 424 and 430A under the Securities Act in
a timely manner; and comply with the

                                      -3-
<PAGE>   4

provisions of the Securities Act with respect to the disposition of all
securities covered by such registration statement during the applicable period
in accordance with the intended method or methods of distribution by the sellers
thereof set forth in such registration statement or supplement to the
prospectus;

                  (b) keep such registration statement continuously effective
for the period necessary to complete the proposed distribution but for no longer
than one hundred eighty (180) days subsequent to the effective date of such
registration; upon the occurrence of any event that would cause the registration
statement or the prospectus contained therein to contain a material misstatement
or omission, the Company shall file promptly an appropriate amendment to such
registration statement correcting any such misstatement or omission;

                  (c) advise the underwriter(s), if any, and selling Holders
promptly and, if requested by such Persons, to confirm such advice in writing,
(i) when the prospectus or any prospectus supplement or post-effective amendment
has been filed, and, with respect to the registration statement or any
post-effective amendment thereto, when the same has become effective, (ii) of
any request by the Commission for amendments to the registration statement or
amendments or supplements to the prospectus or for additional information
relating thereto, (iii) of the issuance by the Commission of any stop order
suspending the effectiveness of the registration statement under the Securities
Act or of the suspension by any state securities commission of the qualification
of the Registrable Securities for offering or sale in any jurisdiction, or the
initiation of any proceeding for any of the preceding purposes, and (iv) of the
existence of any fact or the happening of any event that makes any statement of
a material fact made in the registration statement, the prospectus, any
amendment or supplement thereto, or any document incorporated by reference
therein untrue, or that requires the making of any additions to or changes in
the registration statement or the prospectus in order to make the statements
therein not misleading. If at any time the Commission shall issue any stop order
suspending the effectiveness of the registration statement or any state
securities commission or other regulatory authority shall issue an order
suspending the qualification or exemption from qualification of the Registrable
Securities under state securities or blue sky laws, the Company shall use
commercially reasonable efforts to obtain the withdrawal or lifting of such
order at the earliest possible time;

                  (d) furnish to each of the selling Holders and each of the
underwriter(s), if any, before filing with the Commission, copies of the
registration statement or any prospectus included therein or any amendments or
supplements to any such registration statement or prospectus, and the Company
will not file the registration statement or prospectus or any amendment or
supplement to any registration statement or prospectus to which a selling Holder
of Registrable Securities covered by such registration statement or the
underwriter(s), if any, shall reasonably object within three (3) business days
after the receipt thereof;

                  (e) if requested by any selling Holders or the underwriter(s),
if any, incorporate in the registration statement or prospectus, pursuant to a
supplement or post-effective amendment if necessary, such information as such
selling Holders and underwriter(s), if any, may reasonably request to have
included therein, information with respect to the number of Registrable
Securities being sold to such underwriter(s), the purchase price being paid
therefor and any other terms of the

                                      -4-
<PAGE>   5

offering of the Registrable Securities to be sold in such offering and make all
required filings of such prospectus supplement or post-effective amendment as
soon as practicable after the Company is notified of the matters to be
incorporated in such prospectus supplement or post-effective amendment;

                  (f) furnish to each selling Holder and each of the
underwriter(s), if any, without charge, at least one copy of the registration
statement, as first filed with the Commission, and of each amendment thereto,
including all documents incorporated by reference therein and all exhibits
(including exhibits incorporated therein by reference);

                  (g) deliver to each selling Holder and each of the
underwriter(s), if any, without charge, as many copies of the prospectus
(including each preliminary prospectus) and any amendment or supplement thereto
as such Persons reasonably may request; the Company hereby consents to the use
of the prospectus and any amendment or supplement thereto by each of the selling
Holders and each of the underwriter(s), if any, in connection with the offering
and the sale of the Registrable Securities covered by the prospectus or any
amendment or supplement thereto;

                  (h) prior to any public offering of Registrable Securities,
the Company shall register or qualify the Registrable Securities under the
securities or blue sky laws of such jurisdictions as the selling Holders or
underwriter(s), if any, may request and do any and all other acts or things
reasonably necessary or advisable to enable the disposition in such
jurisdictions of the Registrable Securities covered by the registration
statement; provided, however, that the Company shall not be required to register
or qualify as a foreign corporation where it is not now so qualified or to take
any action that would subject it to the service of process in suits or to
taxation, other than as to matters and transactions relating to the registration
statement, in any jurisdiction where it is not now so subject;

                  (i) cooperate with the selling Holders and the underwriter(s),
if any, to facilitate the timely preparation and delivery of certificates
representing Registrable Securities to be sold and not bearing any restrictive
legends; and enable such Registrable Securities to be in such denominations and
registered in such names as the selling Holders or the underwriter(s), if any,
may request prior to any sale of Registrable Securities made by such
underwriter(s);

                  (j) if any fact or event contemplated by clause (c)(iv) above
shall exist or have occurred, prepare a supplement or post-effective amendment
to the registration statement or related prospectus or any document incorporated
therein by reference or file any other required document so that, as thereafter
delivered to the purchasers of Registrable Securities, the prospectus will not
contain an untrue statement of a material fact or omit to state any material
fact necessary to make the statements therein not misleading;

                  (k) cooperate and assist in any filings required to be made
with the National Association of Securities Dealers, Inc. ("NASD") and in the
performance of any due diligence investigation by any underwriter (including any
"qualified independent underwriter") that is required to be retained in
accordance with the rules and regulations of the NASD;

                                      -5-
<PAGE>   6

                  (l) otherwise comply with all applicable rules and regulations
of the Commission, and make generally available to its security holders, as soon
as practicable, a consolidated earnings statement meeting the requirements of
the Securities Act and Rule 158 thereunder (which need not be audited) for the
twelve-month period (i) commencing at the end of any fiscal quarter in which
Registrable Securities are sold to underwriters in a firm or best efforts
underwritten offering or (ii) if not sold to underwriters in such an offering,
beginning with the first month of the Company's first fiscal quarter commencing
after the effective date of the registration statement;

                  (m) enter into such customary agreements (including an
underwriting agreement in customary form with provisions as may be reasonably
required by the managing underwriter retained by actions of the Holders of a
majority of the Registrable Securities being sold or the managing underwriter or
underwriters retained by Holders participating in an underwritten public
offering, if any, reasonably request in order to expedite or facilitate the
disposition of such Registrable Securities);

                  (n) make available for inspection by any Holder of Registrable
Securities included in such registration statement, any underwriter
participating in any disposition pursuant to such registration statement, and
any attorney, accountant or other agent retained by any such seller or
underwriter (collectively, the "Inspectors"), all financial and other records,
pertinent corporate documents and properties of the Company (collectively, the
"Records"), as shall be reasonably necessary to enable them to exercise their
due diligence responsibility, and cause the Company's officers, directors and
employees to supply all information reasonably requested by any such Inspector
in connection with such registration statement; provided that Records which the
Company determines, in good faith, to be confidential and which it notifies the
Inspectors are confidential shall not be disclosed by the Inspectors unless (i)
the disclosure of such Records is necessary to avoid or correct a misstatement
or omission in the registration statement or (ii) the release of such Records is
ordered pursuant to a subpoena or other order from a court of competent
jurisdiction; provided, further, each Holder of Registrable Securities agrees
that it will, upon learning that disclosure of such Records is sought in a court
of competent jurisdiction, give notice to the Company and allow the Company, at
its expense, to undertake appropriate action and to prevent disclosure of the
Records deemed confidential;

                  (o) obtain a cold comfort letter from the Company's
independent public accountants in customary form and covering such matters of
the type customarily covered by cold comfort letters as the Holders of a
majority of the Registrable Securities being sold reasonably request; and

                  (p) the Company will give the Holders of Registrable
Securities registered under such registration statement, their underwriters, if
any, and one counsel or firm of counsel and one accountant or firm of
accountants representing all the Holders of Registrable Securities to be
registered under such registration statement, the opportunity to participate in
the preparation of such registration statement, each prospectus included therein
or filed with the Commission, and each amendment thereof or supplement thereto,
and will give each of them such access to its books and records and such
opportunities to discuss the business of the Company with its officers and the
independent public accountants who have certified its financial statements as
shall be necessary in the

                                      -6-
<PAGE>   7

opinion of such Holders' and such underwriters' respective counsel to conduct a
reasonable investigation within the meaning of the Securities Act.

         4. LIMITATIONS ON REQUIRED REGISTRATIONS.

                  (a) The Company shall not be required to effect more than two
registrations pursuant to Section 2 hereof.

                  (b) The Company may not cause any other registration of
securities for sale for its own account (other than a registration effected
solely to implement an employee benefit plan) to be initiated after a
registration requested pursuant to Section 2 hereof and to become effective less
than ninety (90) days after the effective date of any registration requested
pursuant to Section 2 hereof.

                  (c) Whenever a requested registration is for an underwritten
offering, only shares which are to be included in the underwriting pursuant to
this Agreement or other agreements with the Company, or shares offered by the
Company may be included in the registration. Notwithstanding the provisions of
Sections 2(b) and 4(b) hereof, if the underwriter determines that (i) marketing
factors require a limitation of the total number of shares to be underwritten,
or (ii) the offering price per share would be reduced by the inclusion of the
shares in the underwriting, then the number of shares to be included in the
registration and underwriting shall be reduced in whole or in part by the
underwriter so long as such limitation is applied on a pro rata basis with
respect to all shares proposed or requested to be registered in the
underwriting. No stock excluded from the underwriting by reason of the
underwriter's marketing limitation shall be included in such registration. If
the Company disapproves of any such underwriting, the Company may elect to
withdraw its shares therefrom by written notice to the Initiating Holders and
the underwriter. The securities so withdrawn from such underwriting shall also
be withdrawn from such registration.

                  (d) If at the time of any request to register Registrable
Securities pursuant to Section 2 hereof, the Company is engaged, or has fixed
plans to engage within ninety (90) days of the time of the request, in a
registered public offering as to which the Holders have the right to include
such Registrable Securities pursuant to Section 5 hereof, then the Company may
at its option direct that such request be delayed for a period not in excess of
six months from the effective date of such offering.

                   (e) The Company shall not be required to effect a
registration pursuant to Section 2 hereof until the earlier to occur of: (i)
April 4, 2002, or (ii) one hundred eighty (180) days after an Approved Offering
(as such term is defined in the Certificate of Designations for the Series A
Convertible Preferred Stock (the "Certificate of Designation") that has been
filed with the Secretary of State of the State of Delaware).

                  (f) At the time of any request to register Registrable
Securities pursuant to Section 2 hereof, all prospective sellers shall select,
by a majority vote of the shares proposed to be sold in the offering, a
shareholder representative (the "Shareholder Representative") and advise the
Company at least ten (10) days in advance of the contemplated effective date of
the registration

                                      -7-
<PAGE>   8

statement for such offering of the identity of the Shareholder Representative.
The Shareholder Representative shall have the authority to approve on behalf of
himself, if applicable, and the other prospective sellers all material terms of
the offering, including without limitation, price and underwriter's discounts
and commissions, which terms shall be subject to reasonable approval of the
Company.

         5. INCIDENTAL REGISTRATION. At any time, commencing one hundred eighty
(180) days after an Approved Offering, if the Company proposes to register any
of its securities under the Securities Act (other than a registration effected
solely to implement an "employee benefit plan" as defined by Rule 405 or a
transaction to which Rule 145 or any successor provision promulgated under the
Securities Act ("Rule 145") is applicable), it will each such time give written
notice to all Holders of its intention so to do. Upon the written request of a
Holder or Holders given within 20 days after receipt of any such notice (stating
the number of shares of Registrable Securities to be disposed of by such Holder
or Holders and the intended method of disposition), the Company will use
commercially reasonable efforts to cause all shares of Registrable Securities to
be sold to be registered under the Securities Act so as to permit the
disposition (in accordance with the methods in said request) by such Holder or
Holders of the shares so registered, subject, however, to the limitations set
forth in Section 6 hereof.

         6. LIMITATIONS ON INCIDENTAL REGISTRATION. If the registration of which
the Company gives notice pursuant to Section 5 hereof is for an underwritten
offering, only securities which are to be included in the underwriting may be
included in the registration. Notwithstanding any provision of Section 5 hereof,
if the underwriter determines that marketing factors require a limitation of the
number of shares to be underwritten, the underwriter may exclude or otherwise
limit the number of shares of Registrable Securities to be included in the
registration and underwriting. The Company shall so advise all Holders who have
indicated to the Company their decision to distribute any of their Registrable
Securities through such underwriting, and the number of shares of Registrable
Securities that may be included in the registration and underwriting shall be
reduced in whole or in part by the underwriter so long as such limitation is
applied on a pro rata basis with respect to all shares proposed or requested to
be registered in the underwriting. No Registrable Securities excluded from the
underwriting by reason of the underwriter's marketing limitation shall be
included in such registration. If any Holder disapproves of any such
underwriting, such Person may elect to withdraw therefrom by written notice to
the Company and the underwriter. The Registrable Securities and/or other
securities so withdrawn from such underwriting shall also be withdrawn from such
registration.

         7. DESIGNATION OF UNDERWRITER. The Company shall have the right to
designate the managing underwriter in any underwritten offering.

                                      -8-
<PAGE>   9

         8. COOPERATION BY PROSPECTIVE SELLERS.

                  (a) Each prospective seller of Registrable Securities will
furnish to the Company such information as the Company may reasonably require
from such seller in connection with the registration statement (and the
prospectus included therein).

                  (b) Failure of a prospective seller of Registrable Securities
to furnish the information and agreements described in this Agreement shall not
affect the obligations of the Company under this Agreement to remaining sellers
who furnish such information and agreements unless, in the reasonable opinion of
counsel to the Company or the underwriters, such failure impairs or may impair
the viability of the offering or the legality of the registration statement or
the underlying offering.

                  (c) The Holders holding shares included in the registration
statement will not (until further notice) effect sales thereof after receipt of
telegraphic or written notice from the Company to suspend sales to permit the
Company to correct or update a registration statement or prospectus; but the
obligations of the Company with respect to maintaining any registration
statement current and effective shall be extended by a period of days equal to
the period such suspension is in effect unless (i) such extension would result
in the Company's inability to use the financial statements in the registration
statement initially filed pursuant to the Holder or Holders' request and (ii)
such correction or update did not result from the Company's acts or failures to
act. At the end of the period during which the Company is obligated to keep the
registration statement current and effective as described in Section 3(b) hereof
(and any extensions thereof required by the preceding sentence), the Holders
holding shares included in the registration statement shall discontinue sales of
shares pursuant to such registration statement upon receipt of notice from the
Company of its intention to remove from registration the shares covered by such
registration statement which remain unsold, and such Holders shall notify the
Company of the number of shares registered which remain unsold immediately upon
receipt of such notice from the Company.

                  (d) Each seller of Registrable Securities pursuant to a
registration which is not underwritten agrees to provide the Company with
written assurances that all sales of Registrable Securities made in connection
with such registration were made in compliance with all applicable securities
laws, including, without limitation, the prospectus delivery requirements of
Section 5 of the Securities Act or any successor provision and the restrictions
of Rules l0b-2, l0b-6 and l0b-7 of the Exchange Act or any successor provisions.

         9. EXPENSES OF REGISTRATION. All expenses incurred in effecting any
registration pursuant to this Agreement including, without limitation, all
registration and filing fees, printing expenses, expenses of compliance with
blue sky laws, fees and disbursements of counsel for the Company and expenses of
any audits incidental to or required by any such registration, shall be borne by
the Company, except that (a) all expenses, fees and disbursements of any counsel
retained by the Holders and all underwriting discounts and commissions
attributable to Registrable Securities being sold by the Holders shall be borne
by the Holders holding the securities registered pursuant to such registration,
pro rata according to the quantity of their securities so registered and (b) the
Company shall be required to pay for any expenses of the initial registration
proceeding begun pursuant to Section 2 hereof even if such registration request
is subsequently withdrawn at the request of the Holders of a majority of the
Registrable Securities to be registered. In all subsequent registration requests
begun pursuant to

                                      -9-
<PAGE>   10

Section 2 hereof that are subsequently withdrawn at the request of the Holders
of a majority of the Registrable Securities to be registered, participating
Holders shall bear the expenses of such registration, unless the Holders of a
majority of the Registrable Securities agree to forfeit their right to a demand
registration pursuant to Section 2 hereof. Notwithstanding the foregoing, in the
case of the registration requests in which the Company has agreed to pay the
Initiating Holders' expenses pursuant to this Section 9, the Company will pay up
to $10,000 per registration request, for expenses, fees and disbursements for
legal counsel for the Initiating Holders.

         10. INDEMNIFICATION.

                  (a) To the extent permitted by law, the Company will indemnify
each Holder requesting or joining in a registration, each agent, officer and
director of such Holders, each Person controlling (within the meaning of Section
15 of the Securities Act or any successor provision) such Holder and each
underwriter and selling broker of the securities so registered (collectively,
"Indemnitees") against all claims, losses, damages and liabilities (or actions
in respect thereof) arising out of or based on any untrue statement (or alleged
untrue statement) of a material fact contained in any prospectus, offering
circular or other document incident to any registration, qualification or
compliance (or in any related registration statement, notification or the like)
or any omission (or alleged omission) to state therein a material fact required
to be stated therein or necessary to make the statements therein not misleading
in the light of the circumstances in which they were made, or any violation by
the Company of any rule or regulation promulgated under the Securities Act
applicable to the Company and relating to action or inaction required of the
Company in connection with any such registration, qualification or compliance,
and will reimburse each such Indemnitee for any legal and any other expenses
reasonably incurred in connection with investigating or defending any such
claim, loss, damage, liability or action; provided, however, that the Company
will not be liable in any such case to the extent that any such claim, loss,
damage or liability is caused by any untrue statement or alleged untrue
statement or omission or alleged omission so made in conformity with written
information furnished to the Company by an instrument duly executed by such
Indemnitees and stated to be specifically for use therein and except that the
foregoing indemnity agreement is subject to the condition that, insofar as it
relates to any such untrue statement (or alleged untrue statement) or omission
(or alleged omission) made in the preliminary prospectus but eliminated or
remedied in the amended prospectus on file with the Commission at the time the
registration statement becomes effective or in the amended prospectus filed with
the Commission pursuant to Rule 424(b) or any successor provision (the "Final
Prospectus"), such indemnity agreement shall not inure to the benefit of any
underwriter, or any Indemnitee if there is no underwriter, if a copy of the
Final Prospectus was not furnished to the Person asserting the loss, liability,
claim or damage at or prior to the time such furnishing is required by the
Securities Act, provided further, that this indemnity shall not be deemed to
relieve any underwriter of any of its due diligence obligations; provided,
further, that the indemnity agreement contained in this Section 10(a) shall not
apply to amounts paid in settlement of any such claim, loss, damage, liability
or action if such settlement is effected without the consent of the Company,
which consent shall not be unreasonably withheld.

                                      -10-
<PAGE>   11

                  (b) To the extent permitted by law, each Holder requesting or
joining in a registration and each underwriter of the securities so registered
will indemnify the Company and its officers and directors and each Person, if
any, who controls the Company within the meaning of Section 15 of the Securities
Act or any successor provision and their respective successors against all
claims, losses, damages and liabilities (or actions in respect thereof) arising
out of or based on any untrue statement of a material fact contained in any
prospectus, offering circular or other document incident to any registration,
qualification or compliance (or in any related registration statement,
notification or the like) or any omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not
misleading in the light of the circumstances in which they were made and will
reimburse the Company and each other Person indemnified pursuant to this Section
10(b) for any legal and any other expenses reasonably incurred in connection
with investigating or defending any such claim, loss, damage, liability or
action; provided, however, that this Section 10(b) shall apply only if (and only
to the extent that) such statement or omission was made in reliance upon and in
conformity with written information (including, without limitation, written
negative responses to inquiries) furnished to the Company by an instrument duly
executed by such Holder or underwriter and stated to be specifically for use in
such prospectus, offering circular or other document (or related registration
statement, notification or the like) or any amendment or supplement thereto
provided that the indemnity agreement contained in this Section 10(b) shall not
apply to amounts paid in settlement of any such claim, loss, damage, liability
or action if such settlement is effected without the consent of the Holder or
underwriter, as the case may be, which consent shall not be unreasonably
withheld.

                  (c) Each party entitled to indemnification hereunder (the
"indemnified party") shall give notice to the party required to provide
indemnification (the "indemnifying party") promptly after such indemnified party
has actual knowledge of any claim as to which indemnity may be sought, and shall
permit the indemnifying party (at its expense) to assume the defense of any
claim or any litigation resulting therefrom, provided that counsel for the
indemnifying party, who shall conduct the defense of such claim or litigation,
shall be reasonably satisfactory to the indemnified party, and the indemnified
party may participate in such defense at such party's expense, and provided,
further, that the omission by any indemnified party to give notice as provided
herein shall not relieve the indemnifying party of its obligations under this
Section 10 except to the extent that the omission results in a failure of actual
notice to the indemnifying party and such indemnifying party is damaged solely
as a result of the failure to give notice. No indemnifying party, in the defense
of any such claim or litigation, shall, except with the consent of each
indemnified party, consent to entry of any judgment or enter into any settlement
which does not include as an unconditional term thereof the giving by the
claimant or plaintiff to such indemnified party of a release from all liability
in respect to such claim or litigation.

                  (d) The reimbursement required by this Section 10 shall be
made by periodic payments during the course of the investigation or defense, as
and when bills are received or expenses incurred.

                  (e) The obligation of the Company under this Section 10 shall
survive the conversion, if any, of the Series A Convertible Preferred Stock, the
completion of any offering of Registrable Securities in a registration statement
under this Agreement, or otherwise.

                                      -11-
<PAGE>   12

         11. RIGHTS WHICH MAY BE GRANTED TO SUBSEQUENT INVESTORS.

                  (a) Within the limitations prescribed by this Section 11(a),
but not otherwise, the Company may grant to subsequent investors (other than
purchasers of Series A Convertible Preferred Stock pursuant to Section 1 of the
Certificate of Designation which may be granted registration rights pari passu
herewith) in the Company rights of incidental registration (such as those
provided in Section 5 hereof). Such rights may only pertain to shares of Common
Stock, including shares of Common Stock into which any other securities may be
converted. Such rights may be granted with respect to (i) registrations actually
requested by Initiating Holders pursuant to Section 2 hereof, but only in
respect of that portion of any such registration as remains after inclusion of
all Registrable Securities requested by Holders and (ii) registrations initiated
by the Company, but only in respect of that portion of such registration as is
available under the limitations set forth in Section 6 hereof (which limitations
shall apply pro rata to all Holders) and such rights shall be limited in all
cases to sharing pro rata in the available portion of the registration in
question with Holders, such sharing to be based on the number of shares of
Common Stock held by the respective Holders and held by such other investors,
plus the number of shares of Common Stock into which other securities held by
the Holders and such other investors are convertible, which are entitled to
registration rights. With respect to registrations which are for underwritten
public offerings, "available portion" means the portion of the underwritten
shares which is available as specified in clauses (i) and (ii) of the third
sentence of this Section 11(a). Shares not included in such underwriting shall
not be registered.

                  (b) The Company may not grant to subsequent investors in the
Company (other than purchasers of Series A Convertible Preferred Stock pursuant
to Section 1 of the Certificate of Designation which may be granted registration
rights pari passu herewith) rights of registration upon request (such as those
provided in Section 2 hereof) unless (i) such rights are limited to shares of
Common Stock issued by the Company to such investors or to shares of Common
Stock issuable by the Company upon the conversion of other securities issued by
the Company to such investors, (ii) all Holders are given enforceable
contractual rights to participate in registrations requested by such subsequent
investors, such participation to be on a pro rata basis, and subject to the
limitations, described in the final three sentences of Section 11(a) hereof,
(iii) such rights shall not become effective prior to ninety (90) days after the
effective date of the registration pursuant to Section 2 hereof and (iv) such
rights shall not be more favorable than those granted to the Holders.

         12. TRANSFER OF REGISTRATION RIGHTS. The registration rights granted to
the Purchasers under this Agreement may be transferred only:

                  (a) if, at the time of transfer, the transferee executes a
counterpart of this Agreement and agrees to be bound by the agreements,
representations and warranties herein; and only

                  (b)(i) to a transferee who shall acquire not less than 250,000
shares of Series A Convertible Preferred Stock or 250,000 shares of Registrable
Securities (as adjusted for Recapitalization Events); or

                                      -12-
<PAGE>   13

                  (ii) in connection with the distribution by a Purchaser of
Series A Convertible Preferred Stock or of Registrable Securities to the
beneficial owners (including, without limitation, to partners of a general or
limited partnership, stockholders of a corporation and beneficiaries of a trust)
of securities of the Purchaser.

         Notwithstanding any provision of this Section 12, the registration
rights granted to the Purchasers under this Agreement may not be assigned to any
Person which, in the Company's reasonable judgment, is a competitor of the
Company.

         13. "STAND-OFF" AGREEMENT. In consideration for the Company performing
its obligations under this Agreement, each Purchaser severally agrees to enter
into an agreement providing that for a period of time (not to exceed one hundred
eighty (180) days) from the effective date of any registration (other than a
registration effected solely to implement an "employee benefit plan" as defined
by Rule 405 or any successor provision or a transaction to which Rule 145 or any
successor provision applies) of Common Stock (or derivatives thereof) of the
Company (upon request of the Company or of the underwriters managing the
underwritten offering covered by such registration), such Purchaser shall not
sell, make any short sale of, loan, grant any option for the purchase of, or
otherwise dispose of any Registrable Securities, other than shares of
Registrable Securities included in the registration, without the prior written
consent of the Company or such underwriters, as the case may be; provided,
however, such Purchaser shall not be obligated to enter into such agreement
unless all executive officers and directors of the Company and each holder of
more than 5% of the outstanding Common Stock (and each holder of the Company's
Class B Common Stock and Class C Common Stock that has the right to convert such
shares into more than 5% of the Company's outstanding Common Stock), shall have
entered into similar agreements.

         14. DELAY OF REGISTRATION. The Purchasers shall have no right to take
any action to restrain, enjoin, or otherwise delay any registration as the
result of any controversy that might arise with respect to the interpretation or
implementation of this Agreement.

         15. TERMINATION OF REGISTRATION RIGHTS. Unless the registration rights
granted in this Agreement are terminated earlier, the registration rights shall
terminate on the earlier of:

                  (a)      June 2, 2006; or

                  (b) with respect to any given Holder, or permissible
transferee or assignee of such rights, at such time when such Holder, transferee
or assignee owns less than the number of shares of Registrable Securities that
could be sold within a single three-month period pursuant to Rule 144.

         16. RULE 144 REQUIREMENTS. If the Company becomes subject to the
reporting requirements of the Exchange Act, the Company will file with the
Commission such information as the Commission may require to make available Rule
144 under the Securities Act (or any successor exemptive rule).

                                      -13-
<PAGE>   14

         17. NOTICES. All notices, requests, consents and other communications
herein (except as stated in the last sentence of this Section 17) shall be in
writing and shall be mailed by first class or certified mail, postage prepaid,
sent by a nationally recognized overnight delivery service, or personally
delivered, as follows:

                  (a)      If to the Company:

                           BroadbandNOW, Inc.
                           1440 Corporate Drive
                           Irving, Texas  75038
                           Attn:  Matthew Hutchins, Sr., President

                           with a copy which shall not constitute notice to:

                           Winstead Sechrest & Minick, P.C.
                           1201 Elm Street
                           5400 Renaissance Tower
                           Dallas, Texas  75270
                           Attn:  Thomas W. Hughes, Esq.

                  (b)      If to the Purchasers at the address set forth on
                           SCHEDULE 1 hereto.

or such other addresses as each of the parties hereto may provide from time to
time in writing to the other parties.

         18. MODIFICATIONS; WAIVER. Neither this Agreement nor any provision
hereof may be changed, waived, discharged or terminated orally or in writing,
except that any provision of this Agreement may be amended and the observance of
any such provision may be waived (either generally or in a particular instance
and either retroactively or prospectively) with (but only with) the written
consent of (a) the Company, and (b) holders of at least 66 2/3 % of the
outstanding shares of the Series A Convertible Preferred Stock (or the
Conversion Shares if applicable) acting together as a single class.

         19. REPLACEMENT AGREEMENT. This Agreement contains the entire agreement
between the parties with respect to the registration rights contemplated hereby,
and supersedes all negotiations, agreements, representations, warranties and
commitments relating to the registration rights contemplated hereby, whether in
writing or oral, prior to the date hereof, including without limitation the
Previous Agreements.

         20. SUCCESSORS AND ASSIGNS. The Company may not assign or delegate any
of its rights or duties under this Agreement. Except as otherwise provided in
this Agreement, all of the terms of this Agreement including the agreements,
representations and warranties set forth herein shall be binding upon and inure
to the benefit of and be enforceable by the respective successors and assigns of
the parties hereto, except that the rights set forth in this Agreement may only
be transferred in accordance with Section 12 hereof.

                                      -14-
<PAGE>   15

         21. ENFORCEMENT.

                  (a) Remedies at Law or in Equity. If any party shall default
         in any of its obligations under this Agreement or if any representation
         or warranty made by or on behalf of such party in this Agreement or in
         any certificate, report or other instrument delivered under or pursuant
         to any term hereof shall be untrue or misleading in any material
         respect as of the date of this Agreement or as of the date it was made,
         furnished or delivered, any party damaged may proceed to protect and
         enforce its rights by suit in equity or action at law, whether for the
         specific performance of any term contained in this Agreement or the
         Certificate of Incorporation of the Company (including the Certificate
         of Designation) or for an injunction against the breach of any such
         term or in furtherance of the exercise of any power granted in this
         Agreement or such Certificate (including the Certificate of
         Designation), or to enforce any other legal or equitable right of such
         party or to take any one or more of such actions. The prevailing party
         in such dispute shall be entitled to recover from the losing party all
         fees, costs and expenses of enforcing any right of such prevailing
         party under or with respect to this Agreement or the Certificate of
         Incorporation (including the Certificate of Designation) of the
         Company, including without limitation reasonable fees and expenses of
         attorneys and accountants, which shall include, without limitation, all
         fees, costs and expenses of appeals.

                  (b) Remedies Cumulative; Waiver. No remedy referred to herein
         is intended to be exclusive, but each shall be cumulative and in
         addition to any other remedy referred to above or otherwise available
         at law or in equity. No express or implied waiver of any default shall
         be a waiver of any future or subsequent default. The failure or delay
         in exercising any rights granted hereunder shall not constitute a
         waiver of any such right and any single or partial exercise of any
         particular right shall not exhaust the same or constitute a waiver of
         any other right provided herein.

         22. EXECUTION AND COUNTERPARTS. This Agreement may be executed in any
number of counterparts, each of which when so executed and delivered shall be
deemed an original, and such counterparts together shall constitute one
instrument. Each party shall receive a duplicate original of the counterpart
copy or copies executed by it and by the Company.

         23. GOVERNING LAW AND SEVERABILITY. THIS AGREEMENT SHALL BE GOVERNED BY
THE LAWS OF THE STATE OF TEXAS AS APPLIED TO AGREEMENTS ENTERED INTO AND TO BE
PERFORMED ENTIRELY WITHIN TEXAS. To the maximum extent practicable, this
Agreement will be deemed to call for performance in Dallas County, Texas. In the
event any provision of this Agreement or the application of any such provision
to any party shall be held by a court of competent jurisdiction to be contrary
to law, the remaining provisions of this Agreement shall remain in full force
and effect.

         24. HEADINGS. The descriptive headings of the Sections hereof and the
Schedules hereto are inserted for convenience only and do not constitute a part
of this Agreement.

                                      -15-
<PAGE>   16

         IN WITNESS WHEREOF, the parties hereto have caused this Registration
Rights Agreement to be duly executed as of the date first set forth above.

                                    THE COMPANY

                                    BROADBANDNOW, INC.

                                    By: /s/ Matthew Hutchins, Sr.,
                                       -----------------------------------------
                                            Matthew Hutchins, Sr., President

                    [PURCHASERS SIGNATURES ON FOLLOWING PAGE]

<PAGE>   17

                    THE PURCHASERS:

                    TELENET CAPITAL GROUP, LLC

                    By: /s/ David Finley
                       ---------------------------------------------------------
                            David Finley, Manager

                    TELECOMMUNICATIONS INVESTMENTS, LLC

                    By: /s/ Jeffrey W. Lubore
                       ---------------------------------------------------------
                            Jeffrey W. Lubore, Manager

                    SUMMIT PROPERTIES, INC.

                    By: /s/ Michael C. Malone
                       ---------------------------------------------------------
                            Michael C. Malone, Senior Vice President

                    MICROSOFT CORPORATION

                    By: /s/ Robert A. Eshelman
                       ---------------------------------------------------------
                            Robert A. Eshelman, Assistant Secretary

                    ARCHSTONE COMMUNITIES TRUST

                    By: /s/ Charles E. Mueller, Jr.
                       ---------------------------------------------------------
                            Charles E. Mueller, Jr., Senior Vice President & CFO

<PAGE>   18

                    ARCHSTONE COMMUNITIES INVESTMENT
                    LLC-I

                    By: Archstone Communities Trust, its Manager

                        By: /s/ Charles E. Mueller, Jr.
                       ---------------------------------------------------------
                                Charles E. Mueller, Jr., Senior Vice President

                    CFE, INC.

                    By: /s/ J. Gordon Smith
                       ---------------------------------------------------------
                            J. Gordon Smith, Vice President

                    NORTEL NETWORKS INC.

                    By: /s/ Jay R. Prestipino
                       ---------------------------------------------------------
                            Jay R. Prestipino, Vice President

                    LUCENT TECHNOLOGIES INC.

                    By: /s/ Leslie L. Rogers
                       --------------------------------------------------------
                       Name:  Leslie L. Rogers
                            ---------------------------------------------------
                       Title: Managing Director
                             --------------------------------------------------

                    BLUE RIDGE INVESTORS II LIMITED PARTNERSHIP

                    By: Blue Ridge Investors Group II, L.L.C.,
                        its General Partner

                         By: /s/ Russell R. Myers
                       ---------------------------------------------------------
                                 Russell R. Myers, General Partner

<PAGE>   19

                    I3S FUNDING I, LLC

                    By: Geneva Associates, L.L.C., its Manager

                        By: /s/ Russell R. Myers
                            -----------------------------------------------
                                Russell R. Myers, Manager

                    BLUE RIDGE INVESTORS LIMITED PARTNERSHIP

                    By: Blue Ridge Investors Group, Inc.,
                        its General Partner

                    By: /s/ Russell R. Myers
                        ---------------------------------------------------
                            Russell R. Myers, Manager

                    LIBERTY BBANDNOW HOLDINGS, LLC

                    BY: Liberty BBandnow, Inc.
                        its sole member

                    By: /s/ Gary S. Howard
                        ---------------------------------------------------
                        Name: Gary S. Howard
                        Title: Executive Vice President and Chief Operating
                               Officer

                    PARADIGM/I3S L.P.

                    By: Paradigm Group, LLC,
                        Its General Partner

                    By: /s/ Sheldon Drobny
                        -----------------------------------------------------
                            Sheldon Drobny, Chairman

<PAGE>   20
                                   SCHEDULE I

                                 THE PURCHASERS

<TABLE>
<CAPTION>

                                                                       No. of
                                                                      Shares of
                                                                       Series A
                                                                     Convertible
                                                                      Preferred            Copy of Notices
  Name of Purchasers                    Notice Address                 Stock               Must be sent to
------------------------     -------------------------------------  ------------   ----------------------------------
<S>                          <C>                                    <C>            <C>
Liberty BBandnow             9197 S. Peoria St.                        1,063,829   Sherman & Howard L.L.C.
Holdings, LLC                Englewood, CO 80112                                   3000 First Interstate Tower, North
                             Attn: General Counsel                                 633 Seventeenth Street
                                                                                   Denver, Colorado  80202
                                                                                   Attn:  Peggy Knight, Esq.

Summit Properties, Inc.      212 South Tryon Street                       53,191   Goodwin Proctor and Hoar
                             Suite 500                                             Exchange Place
                             Charlotte, NC  28281                                  Boston, MA  02109
                             Attn:  Michael G. Malone, Esq.                        Attn:  David Watson, Esq.
                                    General Counsel

Telecommunications           8160 Silverberry Way                        68,916
Investments, LLC             Vienna, VA  22182
                             Attn: Jeffrey W. Lubore,
                                   Manager

TeleNet Capital Group, LLC   2651 North Harwood                           53,191   Haynes and Boone, LLP
                             Suite 450                                             901 Main Street, Suite 3100
                             Dallas, TX  75201                                     Dallas, TX  75202
                             Attn:  David Finley,                                  Attn:  John M. Ambler, Esq.
                                     Manager

Microsoft Corporation        Chief Financial Officer                   1,063,829   General Counsel,
                             Microsoft Corporation                                 Finance and Operations
                             One Microsoft Way, 8S/2055                            Microsoft Corporation
                             Redmond, WA  98052                                    One Microsoft Way, 8S/2055
                                                                                   Redmond, WA  98052
                                                                                   Attn:  Keith Dolliver

Archstone Communities Trust  7670 S. Chester Street                      372,340   Mayer Brown & Platt
                             Suite 100                                             190 South La Salle Street
                             Englewood, Colorado  80112                            Chicago, Illinois  60603-3441
                             Attn:  Charles E. Mueller                             Attention:  Edward J. Schneidman

Archstone Communities        7670 S. Chester Street                       17,294   Mayer Brown & Platt
Investment LLC-I             Suite 100                                             190 South La Salle Street
                             Englewood, Colorado  80112                            Chicago, Illinois  60603-3441
                             Attn:  Charles E. Mueller                             Attention:  Edward J. Schneidman
</TABLE>

<PAGE>   21

<TABLE>
<CAPTION>

                                                                       No. of
                                                                      Shares of
                                                                       Series A
                                                                     Convertible
                                                                      Preferred            Copy of Notices
  Name of Purchasers                    Notice Address                 Stock               Must be sent to
------------------------     -------------------------------------  ------------   ----------------------------------
<S>                          <C>                                    <C>            <C>
CFE, Inc.                    CFE, Inc.                                   265,957   Paul, Hastings, Janofsky & Walker
                             c/o GE Capital Corporation                              LLP
                             2325 Lakeview Parkway                                 600 Peachtree Street N.E., Suite 2400
                             Suite 700                                             Atlanta, GA  30308
                             Alpharetta, GA  30004                                 Attention: Elizabeth Noe, Esq.
                             Attn.:  Ken Gacevich                                  Telephone:  (404) 815-2287
                                                                                   Telecopy:  (404) 815-2424

                                                                                   General Electric Capital Corp.
                                                                                   201 High Ridge Road
                                                                                   Stanford, CT  06927-5700
                                                                                   Attention:  Susan Poland, Esq.
                                                                                   Telephone:  (203) 316-7500
                                                                                   Telecopy: (203) 316-7822

Nortel Networks Inc.         Nortel Networks Inc.                      1,063,829   Jenkens & Gilchrist, a Professional
                             8 Federal Street                                      Corporation
                             Billerica, Massachusetts 01821                        1445 Ross Avenue, Suite 3200
                             Attention: Vice President, Finance,                   Dallas, TX  75202
                             Carrier Packet Solutions                              Attention:  Daryl Robertson
                             Telephone: (978) 916-1751                             Telephone:  (214) 855-4500
                             Telecopy: (978) 916-4755                              Telecopy:  (214) 855-4300
                                      And                                          E-Mail: drobertson@jenkens.com

                             Nortel Networks Inc.
                             GMS 991 15 A40
                             2221 Lakeside Boulevard
                             Richardson, TX  75082-4399
                             Attention: Vice President, Customer
                             Finance North America
                             Telephone: (972) 684-2271
                             Telecopy:  (972) 684-3679

Ascend                       Ascend Communications, Inc.                 531,915   Gray Cary Ware & Freidenrich LLP
Communications Inc.          1701 Harbor Bay Parkway                               400 Hamilton Avenue
                             Alameda, CA 94502                                     Palo Alto, California 94301-1825
                             Attn: Maribeth Harper, General                        Attention: Thomas W. Furlong
                             Counsel                                               Telephone: (650) 328-6561
                             Telephone: (510) 747-6687                             Telecopy: (650) 327-3699
                             Telecopy: (510) 747-6621                              E-Mail: tfurlong@gcwf.com

Blue Ridge Investors II      Blue Ridge Investors II                      47,341   Brooks, Pierce, McLendon,
Limited Partnership          Limited Partnership                                   Humphrey & Leonard, L.L.P.
                             P.O. Box 21962                                        2000 Renaissance Tower
                             Greensboro, N.C. 27420                                230 North Elm Street
                             Telephone: (336) 275-7002                             Greensboro, NC 27401
                             Telecopy: (336) 275-9155                              Attention:  Marc Bishop
                                                                                   Telephone:  (336)  373-8850
                                                                                   Telecopy:  (336)  378-1001
                                                                                   E-Mail: mbishop@
                                                                                   brookspierce.com
</TABLE>

<PAGE>   22

<TABLE>
<CAPTION>

                                                                       No. of
                                                                      Shares of
                                                                       Series A
                                                                     Convertible
                                                                      Preferred            Copy of Notices
  Name of Purchasers                    Notice Address                 Stock               Must be sent to
------------------------     -------------------------------------  ------------   ----------------------------------
<S>                          <C>                                    <C>            <C>
I3S Funding I, LLC           I3S Funding I, LLC                           47,341   Brooks, Pierce, McLendon,
                             P.O. Box 21962                                        Humphrey & Leonard, L.L.P.
                             Greensboro, N.C. 27420                                2000 Renaissance Tower
                             Telephone: (336) 275-7002                             230 North Elm Street
                             Telecopy: (336) 275-9155                              Greensboro, NC 27401
                                                                                   Attention:  Marc Bishop
                                                                                   Telephone:  (336)  373-8850
                                                                                   Telecopy:  (336)  378-1001
                                                                                   E-Mail: mbishop@
                                                                                   brookspierce.com

Blue Ridge Investors         Blue Ridge Investors                         11,702   Brooks, Pierce, McLendon,
Limited Partnership          Limited Partnership                                   Humphrey & Leonard, L.L.P.
                             P.O. Box 21962                                        2000 Renaissance Tower
                             Greensboro, N.C. 27420                                230 North Elm Street
                             Telephone: (336) 275-7002                             Greensboro, NC 27401
                             Telecopy: (336) 275-9155                              Attention:  Marc Bishop
                                                                                   Telephone:  (336)  373-8850
                                                                                   Telecopy:  (336)  378-1001
                                                                                   E-Mail: mbishop@
                                                                                   brookspierce.com

Paradigm/I3S L.P.            Paradigm/I3S L.P.                           159,574
                             c/o Paradigm Group LLC
                             3000 Dundee Road, Suite 105
                             Northbrook, IL  60062
                             Attn:  Aaron J. Fischer
                             Telephone: (847) 562-0700
                             Telecopy: (847) 562-0611
</TABLE>

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