Document:

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     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR CERTAIN PORTIONS OF THIS
   EXHIBIT PURSUANT TO RULE 406 UNDER THE SECURITIES ACT OF 1933, AS AMENDED.

                          LICENCE & SERVICES AGREEMENT

THIS AGREEMENT is made on 29th day of September 1999

BETWEEN:

(1) UPROAR LTD., a Bermuda corporation, with Company Number 3339240, whose
    registered office is at 44 Church Street, Hamilton HM12, Bermuda ("Uproar");
    and

(2) TELEFONICA INTERACTIVA DE CONTENIDOS, a Spanish corporation, whose office is
    registered at Gran Via 28, 28013 Madrid, Spain and with a CIF Number
    A82314113("TI").

WHEREAS

(A) Uproar is in the business of providing content for on-line and
    multi-media products and the operation of online channels. TI is in the
    business of providing content for on-line and multi-media products and the
    operation of on-line channels.

(B) Uproar is contracting with TI for the exclusive distribution rights to
    Uproar websites in Spanish and Portuguese language markets. In order to
    operationally implement this agreement, TI desires that Uproar licence the
    distribution rights and provide the services and support therefor, for the
    operation of the Uproar websites to TI.

(C) Uproar has agreed to licence the distribution rights to TI, and will provide
    services and support to TI for the operation of the Uproar websites in
    exchange for which TI has agreed to pay Uproar exclusivity fees; and TI has
    agreed to distribute the Uproar websites online for the Spanish and
    Portuguese language markets from TI's online properties, in exchange for
    which Uproar has agreed to pay TI a portion of the revenue the Uproar
    websites generate.

THE PARTIES AGREE as follows:

1 INTERPRETATION

In this Agreement, unless the context dictates otherwise, the following words
shall have the following meanings:

    "Anchor Tenancy" means the display of the Uproar Content on the TI Sites
    via the minimum of the following: a) links to the Uproar Content in the form
    of a preferred partner TI Site channel for Uproar above the scroll fold on
    the front page and all other pages upon which the channels are listed; b) a
    text link underneath any 'games' links from any page on the TI Sites in
    which Uproar has the right to insert varying promotional texts to the Uproar
    Content; c) a 120 x 60 pixel graphic linking to the Uproar Content from the
    front page of the TI Sites; d) Uproar Content hotlink and promotional area
    equivalent to one third of the area, above the scroll fold, upon the front
    pages of the TI Sites' games and/or light entertainment channels; and e)
    banner ads upon the TI Sites promoting the Uproar Content in amounts equal
    to or greater than the average provided to the TI Site's other Channel
    partners.

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    "Brands" means any trade marks and service marks (whether registered
    or not), trade and business names;

    "Co-branded" means an item of content where each parties' Brands are
    displayed in equal prominence;

    "Co-branded Pages" means pages published by the parties on UPROAR SP/PT
    Sites and TI Sites where each parties' Brands are displayed in equal
    prominence;

    "COGS" means purchase costs, direct warehousing costs, and shipping costs
    related to products purchased by Uproar for the purpose of resale to third
    parties;

    "TI Competitor Definition" means companies providing portal services within
    the Markets and from whom TI does not accept online advertising, sponsorship
    or e-commerce revenue.

    "Direct Sales Costs" means direct sales salaries, sales commissions, and
    travel and entertainment related to direct sales;

    "Gross Revenue" means all revenue derived from the commercialization and
    distribution of the UPROAR Content, including but not limited to licence
    fees, advertising sponsorship and third party e-commerce revenue that are
    annually received by Uproar.

    "Intellectual Property" means:

    (a) patents, Brands, domain names, copyrights, data base rights, know-how
        rights, designs and inventions; and

    (b) rights of the same or similar effect or nature as or to those in
        paragraph (a), in each case in any jurisdiction;

    "Markets" means those Spanish and Portuguese language markets listed in
    Schedule 1;

    "Net Revenue" means Gross Revenue less actual and reasonable Direct Sales
    Costs, COGS of any on-account merchandising, VAT and ordinary and customary
    rebates. For the avoidance of doubt, Net Revenue does not include the fees
    paid by TI to Uproar under this Agreement;

    "Prizepoint Affinity Program" means the computer software that is used to
    maintain the Prizepoint point system which manages the process for end users
    to accumulate points for which they may exchange or auction for prizes or
    the chance to win prizes. The Prizepoint Affinity Program will incorporate
    software enhancements and be updated based on the Prizepoint Affinity
    Program published on UPROAR.COM from time to time, meaning with no specific
    timing nor any requirements to these enhancements, during the term of the
    Agreement;

    "Roll-Out Schedule" means the schedule for the roll-out of the distribution
    of the UPROAR Content upon the TI Sites set out in Schedule 2;

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    "TI Group Company" means any company in which TI holds at least 50% of the
    shares or acts as managing shareholder;

    "TI Sites" means the home, media portal, or master website of TI, a TI Group
    Company or an afiliate of TI in each and any of the Markets;

    "UPROAR.COM" means Uproar's United States based website;

    "UPROAR Content" means the Internet TCP/IP computer based applications of
    the Uproar formats, IP, and website services listed in the Roll-Out
    Schedule;

    "UPROAR SP/PT Site" means any website being launched in the Markets owned by
    [illegible] with [illegible] incorporating the word "Uproar".

2 LICENCE

    2.1  Subject to the terms of clause 2.2 below, Uproar grants TI an exclusive
         non-transferable licence to distribute the UPROAR Content, not
         including Uproar Content placed into syndication, upon the TI Sites
         within the Markets for the term of this Agreement (the "Licence").

    2.2  The Licence may not be assigned to a third party, unless that third
         party is a TI Group Company as set forth in clause 18 hereunder.

3 TERM

    3.1  The initial term of the Agreement will be thirty-six (36) months from
         the date of the Agreement (the "Initial Term") unless terminated
         earlier under clause 14 hereunder.

    3.2  At the end of the Initial Term, the Agreement will remain in force for
         a further term of twelve (12) months unless terminated by either party
         giving to the other not less than ninety (90) days notice of
         termination prior to the end of the Initial Term and shall thereafter
         be renewed for equal terms of twelve (12) months unless notice as
         aforesaid is given, unless terminated otherwise under clause 14
         hereunder.

4 OBLIGATIONS OF UPROAR

    4.1  During the term of the Agreement, Uproar shall:

         (a)  Design, create and operate Co-branded Spanish and Portuguese
              language versions of the UPROAR Content, for distribution upon the
              TI Sites according to the Roll-Out Schedule;

         (b)  Provide for all UPROAR SP/PT sites to display the same Co-branded
              Pages as distributed upon the TI Sites;

         (c)  Provide the working time of one dedicated person to co-ordinate or
              perform the obligaitons of Uproar under the Agreement;

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         (d)  Provide commercially reasonable editorial resources and content
              development for the Uproar Content;

         (e)  Provide commercially reasonable programmer(s) to manage all
              customization, development and support of the UPROAR Content;

         (f)  Provide commercially reasonable database administrator(s) to
              manage all database requirements and support of the UPROAR
              Content;

         (g)  Perform all end-customer and technical support for the Uproar
              Content and websites to a level equal to the standard support for
              the German language Uproar site, found at the url of
              www.uproar.de;

         (h)  Perform all prize fulfillment associated with tile Uproar Content,
              except where TI is providing prizes and/or discounts via the
              Uproar Content in accordance with this Agreement:

         (i)  Purchase and configure all hardware and software required for
              operating the UPROAR Content;

         (j)  Create and manage a co-branded Syndication Network based upon
              Uproar's management and technology systems;

         (k)  Create and manage a co-branded online Prizepoint Affinity Program,
              of which 5% of the prizes may be from TI or its affiliate.
              Cooperate with TI to coordinate the said online program with TI's
              online and offline extensions of the Prizepoint Affinity Program.

         (l)  Prepare and report, on a monthly basis, summary statistics on
              player usage of the UPROAR Content, and provide user database
              information in a machine readable format to TI in accordance with
              the local laws and regulations applicable in each of the Markets;

         (m)  Provide cross promotion to the UPROAR Content across all Uproar
              worldwide websites, in the form of a listing on the bottom of each
              front page;

         (n)  Provide the necessary legal resources to ensure compliance with
              local laws and regulations in the Markets;

         (o)  Independent of this Agreement, upon the request of TI, negotiate
              in good faith the terms and conditions for the programming and
              delivery of additional content above and beyond the UPROAR Content
              in the event TI desires additional content from Uproar.

    4.2  Uproar shall fully co-operate with and assist TI in the performance of
         its obligations under this Agreement and shall undertake the Uproar
         obligations specified herein at its own expense.

    4.3  Uproar may retain third parties to work on the UPROAR Content. All such
         third parties shall execute, before providing any services, an
         agreement that shall include a promise to maintain as confidential
         Information (as defined in

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         clause 12) as required by this Agreement and that also includes an
         assignment to Uproar of all rights in such work so. that such rights
         may be licenced to TI as required by this Agreement.

    4.4  Upon reasonable prior notice by TI, Uproar will provide for use by TI's
         on-site coordinator, when visiting, during the term of this Agreement,
         such office space, computer equipment and other facilities at Uproar's
         site as may reasonably need to perform its obligations hereunder.

    4.5  Uproar will install and maintain the UPROAR Content in such a way that:

         (a)  it is capable of being accessed and used via the Internet; and

         (b)  the performance of the UPROAR Content is substantially the same,
              or exceeds, the average performance of the same or similar UPROAR
              Content on UPROAR.COM.

          In addition, Uproar will provide all necessary services relating to
          running the UPROAR Content as specified above.

    4.6  Uproar shall ensure that, during the Term, the Uproar Content does not
         contain any defamatory or obscene material, nor material likely to
         infringe any law.

5 TI RESPONSIBILITIES

    5.1  During the term of this Agreement, TI shall:

         (a)  Promote and distribute the UPROAR Content as an Anchor Tenancy
              within the TI sites according to the Roll-Out Schedule;

         (b)  Promote the UPROAR Content on TI Sites as a most favoured partner
              in relation to other channel and content partners whose content is
              displayed on or linked to TI Sites;

         (c)  Approve the layout and integration of each party's Brands upon the
              Co-branded Pages prior to launching;

         (d)  Perform advertising, sponsorship, e-commerce sales, and technical
              serving upon all instances of the Uproar Content, unless Uproar
              assumes the right to perform such sales and serving as outlined
              under clause 6;

         (e)  Provide the working time of one dedicated person to co-ordinate or
              perform the obligations of TI under the Agreement;

         (f)  Provide prize fulfillment for any TI prizes within the Uproar
              Content or the Prizepoint Affinity Program;

         (i)  Integrate the Prizepoint Affinity Program within TI's Sites and
              offline billing product marketing for each Market in accordance
              with the Roll-Out Scehdule.

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         (h) Prepare and provide quarterly financial statements to Uproar,
             on the revenue related to the Uproar Content, as outlined in
             Schedule 3.

    5.2  TI shall fully cooperate with and assist Uproar in the performance of
         its obligations under this Agreement and shall undertake the TI
         obligations specified herein at its own expense.

    5.3  Upon reasonable prior notice by, Uproar, TI will provide for use by
         Uproar's on-site coordinator, when visiting, during the term of this
         Agreement such office space, computer equipment and other facilities at
         TI's site as Uproar may reasonably need to perform its obligations
         hereunder.

6.  SALES PERFORMANCE CONTINGENCY

    After ten (10) months of launching Uproar Content in a specific Market, if
    TI does not reach a monthly effective yield of advertising and sponsorship
    revenue of four (4) USD per one thousand (1000) ad impressions, then Uproar
    has the right to assume the obligation outlined in clause 5.1 (d) and
    require TI to cease fulfilling this obligation this without any compensation
    whatsoever to TI. Uproar will pay TI 50% of Net Revenue as outlined in
    clause 13.2.

7.  ROLL-OUT SCHEDULE

    7.1  Uproar will exercise its best efforts to complete the development and
         launch of the UPROAR Content according to the mutually agreed Roll-Out
         Schedu1e.

    7.2  The parties shall agree in good faith (as may be required) updates to
         the Roll-Out Schedule on a quarterly basis from the date of this
         Agreement and amend the Roll-Out Schedule.

8.  PROPERTY RIGHTS OF THE PARTIES

    8.1  It is acknowledged and agreed by the parties that Uproar shall be
         deemed the sole and exclusive owner of all rights, title and interest
         in the UPROAR Content, including all Intellectual Property thereto.

    8.2  Uproar retains ownership to all items created or purchased by Uproar,
         which includes but is not limited to product content graphic artwork,
         names, and game concepts, the UPROAR Brand, the UPROAR SP/PT Sites, the
         UPROAR.COM and related url, including all domain registration rights,
         title and interest therein. TI retains ownership of all items created
         or purchased by TI, which includes but is not limited to product
         content graphic art work, the TELEFONICA Brand, the TI Sites and
         related url, including all domain registration rights, title and
         interest therein.

    8.3  Subject to the above, during the term of the Agreement

         (a) Uproar and TI agree to share, in compliance with applicable privacy
             laws, any database information compiled from the products using the
             Co-branded Pages.

         (b) All database information complied shall remain the property of the
             compiling party.

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    8.4  Each party hereby covenants and agrees that:

         (a) the Intellectual Property, Brands and other proprietary rights of
             the other party are and shall remain the sole and exclusive
             property of that party; and

         (b) it shall not represent to others that it has any ownership rights
             with respect thereto except as specifically granted hereunder.

    8.5  During the term of this Agreement, each party grants to the other a
         non-exclusive non-transferable license to use the other party's Brands
         on the Co-branded Pages. Prior to the use by one party hereunder of any
         of the Brands of the other party, such party shall submit to the other
         party for its prior approval the screens, marketing materials,
         advertising materials and other materials containing such Brands.

9.  WARRANTIES

    9.1  Each party warrants, covenants and represents to each other that:

         (a) it has the full right, power and authority to enter into this
             Agreement;

         (b) it is not subject to any non-competition obligations or other legal
             disabilities or limitations which prevent it from performing its
             obligations hereunder; and

         (c) the exercise of any right, licence or privilege granted in this
             Agreement, shall not invade any right of privacy or publicity, or
             infringe the Intellectual Property of any third party.

    9.2 Each party warrants to the other that it is the sole and exclusive owner
        of its Intellectual Property and/or has the right and power to licence
        its Intellectual Property and that such licence does not and will not
        infringe any third party Intellectual Property.

    9.3 Each party warrants to the other that the T1 Sites and UPROAR- SP/PT
        Sites respectively:

         (a) do not infringe the Intellectual Property of any third party;

         (b) do not contain or display any material or link to material or
             sites that are libelous, defamatory, pornographic, threatening,
             illegal or otherwise offensive.

         (c) do not contain any hyperlink or other links that have not been
             approved or licenced; or

         (d) do not violate any applicable law, regulation, judgment, order or
             directive.

10. INDEMNITY AND OTHER MATTERS

    10.1 Each party agrees it will, at its own cost and expense, defend,
         indemnify and hold harmless the other against bona fide claims,
         demands, damages, actions, causes of action, losses, judgments, costs
         and expenses of every nature (including reasonable attorney's fees and

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         expenses) ("Claims(s)") to the extent such Claims arise out of, result
         from, or are attributable to:

         (a) an infringement of the warranties given in clause 9; or

         (b) the negligence or willful misconduct by either party or its
             employees, subcontractors, representatives or agents in the
             performance of this Agreement;

                provided that party immediately notifies the other party in
                writing (providing full details) of the Claims. Each party shall
                defend, indemnify and hold the other harmless pursuant to this
                Clause, during the entire claim process, regardless of whether
                the Claim is settled or goes to trial; and the other party
                provides, at the party's expense, all reasonable assistance
                relating to such a claim requested by the other party.

    10.2 If a judgment or settlement is obtained or reasonably anticipated
         against use of any Intellectual Property for which either party has
         indemnified the other, the indemnifying party shall, at its own cost
         and expense, promptly modify the item or items which were determined to
         be infringing, acquire a licence or licences of the Intellectual
         Property in order to provide the necessary rights to the other to
         eliminate the infringement, or substitute the Intellectual Property
         with non-infringing Intellectual Property which provides equivalent
         functionality.

    10.3 If Uproar notifies that, in its opinion, TI's advertising or promotion
         of a third party site is in violation of TI's obligations under clause
         5.1 (b), then without prejudice to any other remedy available to
         Uproar. TI shall be required within three (3) working days of such
         notification by Uproar to demonstrate to Uproar's reasonable
         satisfaction that TI has complied with its obligations, failing which
         TI shall immediately remove such advertising or promotional material
         and links for the third party site in question.

11. LIMITATION OF LIABILITY

         Except in the case of a breach of clauses 9.2, 9.3, or 12, a party's
         liability for breach of or failure to substantially perform hereunder
         shall be limited to the other party's actual damages or the amount
         previously paid to the other party under this Agreement, whichever is
         less. In no event shall either party become liable hereunder for
         indirect or consequential loss or damage, or for any loss of data,
         profit, revenue, contracts or business, howsoever caused (whether
         arising out of breach of this Agreement negligence or otherwise) even
         if the same was foreseeable, or for any special or punitive damages.

12. CONFIDENTIALITY

    12.1 In this clause, "Confidential Information" means all confidential
         information disclosed (whether in writing, orally or by another means
         and whether directly or indirectly) by a party (the "Disclosing Party")
         to the other party (the "Receiving Party") whether before or after the
         date of this Agreement including, without limitation, information
         relating to the UPROAR Content or to the Disclosing Party's products,
         operations, processes, plans or intentions, product information,
         know-how, design rights, trade secrets, market opportunities and
         business affairs.

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    12.2 The Receiving Party shall:

         (a) not use Confidential Information for  purpose other than the
             performance of its obligations under this Agreement; and

         (b) not disclose Confidential Information to a person except with the
             prior written consent of the Disclosing Party.

    12.3 This clause shall not apply to Confidential Information which:

         (a) is at the date of this Agreement, or at any time after that date
             becomes, publicly known other than by the Receiving Party's breach
             of this Agreement;

         (b) can be shown by the Receiving Party to the Disclosing Party's
             reasonable satisfaction to have been known by the Receiving Party
             before disclosure by the Disclosing Party to the Receiving Party;

         (c) is released from confidential treatment by written consent of the
             Disclosing Party;

         (d) is disclosed to the Receiving Party by a third party having no
             obligation of confidentiality with respect thereto; or

         (e) is required to be disclosed by law or order of a court or
             governmental agency (such disclosure to be made only after
             consultation with the Disclosing Party).

13 PAYMENTS

    13.1 In consideration of the grant of the Licence by Uproar and the
         performance by Uproar of its obligations, TI agrees, to pay the
         following fees to Uproar:

                Year 1: [****] USD
                Year 2: [****] USD
                Year 3: [****] USD

                These fees will be paid by TI within one hundred and twenty
                (120) days of receipt of invoice from Uproar. Uproar will
                invoice TI in equal quarterly installments at the beginning of
                each calendar quarter beginning from the date of this Agreement.

    13.2 In consideration of the performance by Uproar of its obligations, T1
         agrees to pay Uproar [****] of the Net Revenue.

         TI will pay Net Revenue payments to Uproar within thirty (30) days of
         the end of each calendar quarter from the date of this Agreement.

    13.3 The licence fees payable by TI to Uproar under this Agreement do not
         include any applicable sales taxes or other applicable taxes, any such
         taxes shall be paid by T1 in addition to the licence fees.

--------------
**** Represents material which has been redacted pursuant to a request for
     confidential treatment pursuant to Rule 406 under the Securities Act of
     1933, as amended. Omitted material for which confidential treatment has
     been requested has been filed separately with the Securities and Exchange
     Commission.

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     13.4 Payments made by TI to Uproar under this Agreement do not include any
          applicable sales taxes or other applicable taxes. Such applicable
          taxes shall be deducted or withheld by TI at the rate and in the
          manner prescribed by law from the payments.

14 TERMINATION

     14.1 Neither party may terminate this Agreement except pursuant to the
          provisions of this clause.

     14.2 Either party may terminate this Agreement with immediate effect by
          notice to the other party (the "Other Party") on or at any time after
          the occurrence of one of the following event in relation to the Other
          Party:

          (a)  the Other Party is in material breach of a material obligation
               under this Agreement and, if the breach is capable of remedy, has
               failed to remedy the breach within thirty (30) days starting on
               the day after receipt of written notice specifying the breach and
               stating that a failure to remedy the breach may give rise to
               termination under this clause 14. For the purposes of this clause
               14.2(a), a breach is capable of remedy if the Other Party
               can comply with the obligation within a thirty (30) day period;
               or

          (b)  the Other Party becomes insolvent, or an order is made or a
               resolution is passed for the winding up of the Other Party (other
               than voluntarily for the purpose of solvent amalgamation or
               reconstruction), or an administrator, administrative receiver,
               receiver or other insolvency practitioner is appointed in respect
               of the whole or any part of the Other Party's assets or business,
               or the Other Party makes any composition with its creditors or
               takes or suffers any similar or analogous action in consequence
               of debt under the laws of Bermuda or Spain as applicable.

     14.3 Uproar agrees to give TI thirty (30) days prior written notice of any
          change of control of Uproar. For the purposes of this clause 14.3,
          "control" means the ability to direct the affairs of another whether
          by way of contract, ownership of shares or otherwise howsoever. On
          receipt of such notice of change of control from Uproar, TI may
          terminate this Agreement by written notice to Uproar, termination to
          take effect one hundred and eighty (180) days after receipt of such
          notice by Uproar.

15 CONSEQUENCES OF TERMINATION

     15.1 Subject to clause 15.2 below, each party's rights and obligations
          cease immediately on termination or this Agreement, but termination
          will not affect a party's accrued rights and obligations at the date
          of termination.

     15.2 Notwithstanding the termination of the Agreement each party shall
          remain liable to pay to the other party all sums accrued or due on or
          prior to the date of termination,

     15.3 Each party shall return to the other all materials provided by the
          other party under this Agreement.

16 INDEPENDENT CONTRACTOR
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     16.1 In the performance of their respective obligations hereunder, Uproar
          and TI are and at all times will be completely independent from each
          other and this Agreement shall not constitute, or be deemed to
          constitute, either party as an employee, agent, partner, or joint
          venturer of the other.

     16.2 Each party shall be responsible for the payment of each employee's and
          contractor's compensation and benefits including any applicable taxes,
          national insurance contributions, unemployment, compensation and
          social security.

17 NON-COMPETITION

          Each party agrees not to hire or attempt to hire any employee of the
          other party during the term of this Agreement and for a period of
          twelve (12) months following termination.

18 ASSIGNMENT

     18.1 The rights and obligations resulting from this Agreement may not be
          assigned, novated, sub-let or otherwise transferred by either party
          without the prior written consent of the other party, except that no
          consent is necessary for TI to assign its rights and obligations
          resulting from this Agreement to a TI Group Company, subject to TI
          giving written notice to Uproar of such assignment at least thirty
          (30) days prior to TI effecting any such assignment and the TI Group
          Company agreeing to be fully bound with the terms of this Agreement.

     18.2 This Agreement shall be binding upon both parties, their successors
          and permitted assigns.

19 NOTICES

     19.1 Any notice or communication required or permitted to be given under
          the provisions of this Agreement shall be in writing in the English
          language and shall be sent to the parties at the following addresses
          (or at such other address for a party as shall be specified by like
          notice:

                    (i)       In the case of Uproar:

                              44 Church Street
                              Hamilton
                              HM12 Bermuda

                              Contact: Timothy Ewing

                              Fax No: +36-1-266-3392

                    (ii)      In the case of TI:

                              Avda. de las Dos Castillas 33
                              Complejo Atica No 1
                              28224 Pozuelo de Alarcon
                              Madrid, Spain

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                              Rafael Bonnelly

                              Fax No: +34-91-452-3150

          and shall be deemed to liave been given or made:

          (a)  if delivered personally, by overnight courier or mailed by
               express mail on the date delivered.

          (b)  if sent by registered or certified mail (postage prepaid, return
               receipt requested) within three(3) business days of posting;

          (c)  if sent by facsimile transmittal, confirmed by express, certified
               or registered mail on the date sent:

          save that notices of changes of address shall be effective upon
          receipt.

20 GOVERNING LAW; JURISDICTION

     20.1 All disputes arising in connection with this Agreement shall be
          settled by arbitration under the rules of conciliation and arbitration
          of the International Chamber of Commerce ("ICC") by one of more
          arbitrators appointed in accordance with the same rules. The parties
          shall decide on the number and identity of the arbitrators and, in
          case of disagreement, the acting chairman of the ICC shall decide. The
          decision of the arbitrator or arbitrators shall be binding upon the
          parties and the expenses of the arbitration shall be paid as the
          arbitrator or arbitrators determine. The decision of the arbitrator or
          arbitrators shall be executory and judgment thereon may be entered by
          any court of competent jurisdiction.

     20.2 The official language of the Agreement shall be the English language
          and in any and all interpretations hereof the English language
          understanding shall govern.

     20.3 This Agreement shall be governed and construed in accordance with the
          laws of England and Wales.

     20.4 Each party to this Agreement shall have the right to institute
          judicial proceedings against the other party in order to seek specific
          performance, injunctive relief or similar equitable relief before any
          court of competent jurisdiction.

21 MISCELLANEOUS

     21.1 The Agreement constitutes the entire agreement of the parties with
          respect to the subject matter hereof, and supersedes all prior
          negotiations, representations or agreements, both written and oral. No
          changes, alterations, or modifications to this Agreement shall be
          effective unless reduced to writing and signed by the parties hereto.

     21.2 This Agreement may be executed in several counterparts, including via
          facsimile, each of which shall be deemed an original; and all such
          counterparts together shall constitute one and the same instrument.

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     21.3 The failure of any party to this Agreement to require performance by
          another party of any provision of this Agreement or to pursue any
          remedy resulting from a breach of this Agreement by another party
          shall not be construed as a waiver of the right to thereafter require
          performance of each and every provision of this Agreement nor as a
          waiver of that or any subsequent or other breach by that party,
          unless, such waiver is in writing and signed by the party in respect
          of whom such waiver is claimed.

     21.4 Notwithstanding the expiration or termination of the term of this
          Agreement for any reason whatsoever, the provisions of the Agreement
          will continue to be in force to the degree that the parties originally
          intended. Any other provisions of this Agreement necessary to give
          efficacy thereto.

     21.5 If any provision of this Agreement should be held invalid or
          unenforceable for any reason whatsoever or to violate any law of any
          applicable jurisdiction, such provision shall be enforced to the
          maximum extent legally permissible so as to effect the intent of the
          parties unless it is found to be wholly invalid and thus must be
          considered severed from such provision, and such provision shall be
          deemed deleted from this Agreement in such jurisdiction or, in the
          event that it should be held only to violate the laws of any
          applicable jurisdiction, such provision shall be inapplicable only
          within such jurisdiction, and the remainder of this Agreement shall be
          valid and binding upon the parties as if such provision was not
          included herein.

     21.6 Neither party shall be liable to the other for any delay or failure to
          perform their obligations hereunder due to causes beyond its
          reasonable control which such party is unable to overcome by the
          exercise of reasonable due diligence. Performance times shall be
          considered extended for a period of time equivalent to the time lost
          because of any such delay. When the force majeure cause has been
          eliminated or has been waived by the party claiming the benefit of
          such cause, this Agreement shall continue in full force and effect.

                                       13

<PAGE>

IN WITNESS WHEREOF, each of the parties hereto has duly executed this
Agreement the day and year first above written.

EXECUTED for and on behalf of                ) /s/ Timothy Ewing
UPROAR LTD                                   ) --------------------

Name: Timothy Ewing
Title: President

EXECUTED for and on behalf of                ) /s/ Juan Perea
TELEFONICA INTERACTIEVA DE CONTENIDOS S.A.   ) --------------------

Name: Juan Perea Saenz de Buruaga
Title: President

                                       14

<PAGE>

                                   Schedule 1

                                     Markets

Spain
Portugal
United States & its territories
Mexico
Guatemala
El Salvador
Nicaragua
Costa Rica
Panama
Belize
Honduras
Cuba
Venezuela
Colombia
Ecuador
Peru
Chile
Argentina
Uruguay
Paraguay
Bolivia
Brazil

                                       15
<PAGE>

                                   Schedule 2

                                Roll-out Schedule

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------
  Format                 USA - Spanish          Mexico               Brazil              Spain               TBD.....
------------------------------------------------------------------------------------------------------------------------
<S>                       <C>                   <C>                   <C>                <C>                 <C>
  [****]                  [****]                 [****]              [****]              [****]
------------------------------------------------------------------------------------------------------------------------
  [****]                  [****]                 [****]              [****]              [****]
------------------------------------------------------------------------------------------------------------------------
  [****]                  [****]                 [****]              [****]              [****]
------------------------------------------------------------------------------------------------------------------------
  [****]                  [****]                 [****]              {****]              {****]
  [****]
  [****]
  [****]
  [****]
  [****]
  [****]
  [****]
  [****]
  [****]
  [****]
  [****]
  [****]
  [****]
  [****]
  [****]
  [****]
  [****]
  [****]
  [****]
  [****]
------------------------------------------------------------------------------------------------------------------------
  Other formats
  TBD.....
------------------------------------------------------------------------------------------------------------------------
</TABLE>

NOTES:
-    the 1 Oct launch for the USA-Spanish will include a mutually agreed list of
     games not outlined here due to the short time frame in respect to the
     contract effective signing date
-    the MP game formats listed above may have more than one game launched
     based on the same format

--------------
**** Represents material which has been redacted pursuant to a request for
     confidential treatment pursuant to Rule 406 under the Securities Act of
     1933, as amended. Omitted material for which confidential treatment has
     been requested has been filed separately with the Securities and Exchange
     Commission.

                                       16

<PAGE>

                                   Schedule 3

For the period from [__________] to [__________] ("the Quarter")

a)   Revenue generated in respect of advertising
     carried on the Service (excl. VAT):
                                                                      -_________
     Less direct sales costs payable for such
     advertising:                                                     -_________

     Subtotal:                                                        -_________

     TI Share:                                               50%      -
     ---------------------------------------------------------------------------

b)   Revenue generated in respect of sponsorship
     carried on the Service (excl. VAT):
                                                                      -_________
     Less direct sales costs payable for such sponsorship:
                                                                      -_________

     Subtotal:
                                                                      -_________

     TI Share:                                               50%      -
     ---------------------------------------------------------------------------

c)   Revenue generated in respect of third party
     transactions carried on the Service (excl. VAT):
                                                                      -_________
     Less direct sales costs payable for such third
     party transactions:
                                                                      -_________

     Subtotal:
                                                                      -_________

     TI Share:                                               50%      -
     ---------------------------------------------------------------------------

d)   Revenue generated in respect of own account
     transactions carried on the Service (excl. VAT):
                                                                      -_________
     Less COGS for such own account transactions:
                                                                      -_________

     Subtotal:
                                                                      -_________

     TI Share:                                               50%      -
     ---------------------------------------------------------------------------
     TOTAL         UPROAR
     SHARE:

Aggregate number of transactions completed via the Service: [          ]

Declaration: The details included in this form are, to the best of my knowledge,
a true and accurate record of the operation of the Service during the Quarter.

Signed: _______________________________________________________________________
Name of signatory:                                     Position:
Date:

                                       17<PAGE>   1
                                                                     Exhibit 4.2

                          REGISTRATION RIGHTS AGREEMENT

                            dated as of July 23, 1998

                                      among

                       NATIONAL NETWORK TECHNOLOGIES INC.

                                     and the

                                    INVESTORS

<PAGE>   2
                                Table of Contents

Section 1. Definitions..................................................    1
Section 2. Required Registration........................................    2
Section 3. Piggyback Registration.......................................    4
Section 4. Registrations on Form S-3....................................    5
Section 5. Holdback Agreement...........................................    5
Section 6. Preparation and Filing.......................................    6
Section 7. Expenses.....................................................    9
Section 8. Indemnification..............................................    9
Section 9. Underwriting Agreement.......................................   12
Section 10. Information by Holder.......................................   12
Section 11. Exchange Act Compliance.....................................   12
Section 12. No Conflict of Rights.......................................   12
Section 13. Termination.................................................   12
Section 14. Successors and Assigns......................................   13
Section 15. Assignment..................................................   13
Section 16. Entire Agreement............................................   13
Section 17. Notices.....................................................   13
Section 18. Modifications; Amendments; Waivers..........................   14
Section 19. Counterparts; Facsimile Signatures..........................   14
Section 20. Headings....................................................   14
Section 21. Governing Law...............................................   15

<PAGE>   3
                                               REGISTRATION RIGHTS
                                      AGREEMENT, dated as of July, 1998,
                                      among NATIONAL NETWORK
                                      TECHNOLOGIES INC., a Delaware corporation
                                      (the "Corporation"), and the INVESTORS (as
                                      herein defined).

         The Investors own shares of Preferred Stock (as hereinafter defined),
which is convertible, as and when set forth in the Corporation's Amended and
Restated Certificate of Incorporation, into Common Stock (as hereinafter
defined) of the Corporation. The Corporation and the Investors deem it to be in
their respective best interests to set forth the rights of the Investors in
connection with public offerings and sales of the Common Stock and are entering
into this Agreement as a condition to and in connection with the Securities
Purchase Agreement (as hereinafter defined).

         NOW, THEREFORE, in consideration of the premises and mutual covenants
and obligations hereinafter set forth, the Corporation and the Investors hereby
agree as follows:

         SECTION 1. DEFINITIONS.

         As used in this Agreement, the following terms shall have the following
meanings:

         "Charter" means the Company's Amended and Restated Certificate of
Incorporation.

         "Commission" means the Securities and Exchange Commission or any other
Federal agency at the time administering the Securities Act.

         "Common Stock" means the common stock, $.001 par value per share, of
the Corporation.

         "Exchange Act" means the Securities Exchange Act of 1934 or any
successor Federal statute, and the rules and regulations of the Commission
promulgated thereunder, all as the same shall be in effect from time to time.

         "Investors" means the persons set forth on Schedule I and each
additional person who shall execute a counterpart signature page hereto, and
includes any successor to, or assignee or transferee of, any such person who or
which agrees in writing to be treated as an Investor hereunder and to be bound
by the terms and comply with all applicable provisions hereof.

         "Other Shares" means at any time those shares of Common Stock which do
not constitute Primary Shares or Registrable Shares.

         "Preferred Stock" means the Series A Convertible Preferred Stock, $.001
par value per

<PAGE>   4
share, of the Corporation.

         "Primary Shares" means at any time the authorized but unissued shares
of Common Stock and shares of Common Stock held by the Corporation in its
treasury.

         "Registrable Shares" means at any time, with respect to any Investor,
the shares of Common Stock held by such Investor, or into which Shares of
Preferred Stock held by such Investor are convertible, which constitute
Restricted Shares.

         "Restricted Shares" means shares of Common Stock held by or issuable
upon the conversion of shares of the Preferred Stock held by, any Investor, and
any other securities which by their terms are exercisable or exchangeable for or
convertible into Common Stock or other securities which are so exercisable or
convertible and any securities received in respect thereof, held by such
Investor. As to any particular Restricted Shares, once issued, such Restricted
Shares shall cease to be Restricted Shares when (a) they have been registered
under the Securities Act, and the registration statement in connection therewith
has been declared effective, (b) they are eligible to be sold or distributed
pursuant to Rule 144 within any consecutive three month period (including
without limitation, Rule 144(k)) without volume limitations, or (c) they shall
have ceased to be outstanding.

         "Registration Date" means the date upon which the registration
statement pursuant to which the Corporation shall have initially registered
shares of Common Stock under the Securities Act for sale to the public shall
have been declared effective.

         "Rule 144" means Rule 144 promulgated under the Securities Act or any
successor rule thereto or any complementary rule thereto (such as Rule 144A).

         "Securities Act" means the Securities Act of 1933 or any successor
Federal statute, and the rules and regulations of the Commission thereunder, all
as the same shall be in effect from time to time.

         "Securities Purchase Agreement" means the Securities Purchase Agreement
dated the date hereof, among the Corporation, among others, and the Investors.

         SECTION 2. REQUIRED REGISTRATION.

         If at any time on or after ninety days after the Registration Date,
holders representing not less than 33-1/3% of the Restricted Shares then
outstanding shall in writing state that such holders desire to sell Registrable
Shares in the public securities markets and request the Corporation to effect
the registration under the Securities Act of Registrable Shares, the Corporation
shall promptly use its best efforts to effect tho registration under the
Securities Act of the Registrable Shares which the Corporation has been so
requested to register; provided, however, that the Corporation shall not be
obligated to effect any registration under the Securities Act except in

                                        2

<PAGE>   5
accordance with the Amended and Restated Certificate of Incorporation and the
following provisions:

                  (a) The Corporation shall not be obligated to use its best
         efforts to file and cause to become effective (i) more than two
         registration statements initiated pursuant to this Section 2 on Form S-
         1 promulgated under the Securities Act or any successor form thereto,
         (ii) any registration statement during any period in which any other
         registration statement (other than on Form S-4 or Form S-8 promulgated
         under the Securities Act or any successor forms thereto) pursuant to
         which Primary Shares are to sold has been filed and not withdrawn or
         has been declared effective within the prior 90 days.

                  (b) The Corporation may delay the filing or effectiveness of
         any registration statement for a period of up to 90 days after the date
         of a request for registration pursuant to this Section 2 if at the time
         of such request (i) the Corporation is engaged, or has fixed plans to
         engage within 90 days of the time of such request, in a firm commitment
         underwritten public offering of Primary Shares in which the holders of
         Registrable Shares may include Registrable Shares pursuant to Section 3
         or (ii) the Corporation reasonably determines that such registration
         and offering would interfere with any material transaction involving
         the Corporation, as approved by the Board of Directors, provided,
         however, that the Corporation may only delay the filing or
         effectiveness of a registration statement pursuant to this Section 2(b)
         for a total of 180 days after the date of a request for registration
         pursuant to this Section 2.

                  (c) With respect to any registration pursuant to this Section
         2, the Corporation shall give notice of such registration to the
         Investors who do not request registration hereunder and to the holders
         of all Other Shares that are entitled to registration rights and the
         Corporation may include in such registration any Primary Shares or
         Other Shares; provided, however, that if the managing underwriter
         advises the Corporation that the inclusion of all Registrable Shares,
         Primary Shares and/or Other Shares proposed to be included in such
         registration would interfere with the successful marketing (including
         pricing) of the Registrable Shares proposed to be included in such
         registration, then the number of Registrable Shares, Primary Shares
         and/or Other Shares proposed to be included in such registration shall
         be included in the following order:

                           (i) First, the Registrable Shares requested to be
                  included in such registration (or, if necessary, such
                  Registrable Shares pro rata among the holders thereof based
                  upon the number of Registrable Shares requested to be
                  registered by each such holder);

                           (ii) second, the Primary Shares; and

                           (iii) third, the Other Shares which are entitled to
                  registration rights.

                                        3
<PAGE>   6
                  (d) If the holders of the Registrable Shares requesting to be
         included in a registration pursuant to this Section 2 so elect, the
         offering of such Registrable Shares pursuant to such registration shall
         be in the form of an underwritten offering. The holders of Registrable
         Shares then holding 75% of the Registrable Shares requested to be
         included in such registration shall select one or more nationally
         recognized firms of investment bankers reasonably acceptable to the
         Company to act as the lead managing underwriter or underwriters in
         connection with such offering.

                  (e) At any time before the registration statement covering
         Registrable Shares becomes effective, the holders of 75% of such shares
         may request the Corporation to withdraw or not to file the registration
         statement. In that event, if such request of withdrawal shall not have
         been caused by, or made in response to, the material adverse effect of
         an event on the business, properties, condition, financial or
         otherwise, or operations of the Corporation, the holders shall have
         used one of their demand registration rights under this Section 2 and
         the Corporation shall no longer be obligated to register Registrable
         Shares pursuant to the exercise of such one registration right pursuant
         to this Section 2 unless the remaining holders shall pay to the
         Corporation the expenses incurred by the Corporation through the date
         of such request.

         SECTION 3. PIGGYBACK REGISTRATION.

         If the Corporation at any time proposes for any reason to register
Primary Shares or Other Shares under the Securities Act (other than on Form S-4
or Form S-8 promulgated under the Securities Act or any successor forms
thereto), it shall give written notice to the Investors of its intention to so
register such Primary Shares or Other Shares at least 30 days before the initial
filing of such registration statement and, upon the written request, delivered
to the Corporation within 20 days after delivery of any such notice by the
Corporation, of the Investors to include in such registration Registrable Shares
(which request shall specify the number of Registrable Shares proposed to be
included in such registration and shall state that such Investors desire to sell
such Registrable Shares in the public securities markets), the Corporation shall
use its best efforts to cause all such Registrable Shares to be included in such
registration on the same terms and conditions as the securities otherwise being
sold in such registration; Provided, however, that if the managing underwriter
advises the Corporation that the inclusion of all Registrable Shares requested
to be included in such registration would interfere with the successful
marketing (including pricing) of the Primary Shares or Other Shares proposed to
be registered by the Corporation, then the number of Primary Shares, Registrable
Shares and Other Shares proposed to be included in such registration shall be
included in the following order:

         if the Corporation proposes to register Primary Shares, or Primary
Shares and Other Shares:

                  (a) first, the Primary Shares; and

                                        4

<PAGE>   7
                  (b) second, the Registrable Shares requested to be included in
         such registration (or, if necessary, such Registrable Shares pro rata
         among the holders thereof based upon the number of Registrable Shares
         requested to be registered by each such holder); and

                  (c) third, the Other Shares requested to be included in such
         registration (or, if necessary, such Other Shares pro rata among the
         holders thereof based upon the number of Other Shares requested to be
         registered by each such holder).

         Without in any way limiting the number of registrations in which the
Corporation shall be required to include Registrable Securities at the request
of the required number of Investors pursuant to this Section 3 and Section 4
below, the Corporation shall only be responsible for the costs and expenses
(including all expenses under Section 7 below) of up to four piggyback
registrations pursuant to this Section 3 and up to four S-3 registrations
pursuant to Section 4 below.

         SECTION 4. REGISTRATIONS ON FORM S-3.

         Anything contained in Section 2 to the contrary notwithstanding and
subject to the last sentence of Section 3, at such time as the Corporation shall
have qualified for the use of Form S-3 promulgated under the Securities Act or
any successor form thereto, the holders of the Registrable Shares then
outstanding shall have the right to request in writing an unlimited number of
registrations of Registrable Shares on Form S-3 or such successor form of
Registrable Shares, which request or requests shall (a) specify the number of
Registrable Shares intended to be sold or disposed of and the holders thereof,
(b) state the intended method of disposition of such Registrable Shares and (c)
relate to Registrable Shares having an aggregate offering price of at least
$250,000. A requested registration on Form S-3 or any such successor form in
compliance with this Section 4 shall not count as a registration statement
initiated pursuant to Section 2 but shall otherwise be treated as a registration
initiated pursuant to, and shall, except as otherwise expressly provided in this
Section 4, be subject to Section 2, including, without limitation, Section 2(a).

         SECTION 5. HOLDBACK AGREEMENT.

         If the Corporation at any time shall register shares of Common Stock
under the Securities Act (including any registration pursuant to Sections 2, 3
or 4 hereof) for sale to the public, the Investors shall not sell publicly, make
any short sale of, grant any option for the purchase of, or otherwise dispose
publicly of, any Registrable Shares (other than those shares of Common Stock
included in such registration pursuant to Sections 2, 3 or 4 hereof) without the
prior written consent of the Corporation, for a period designated by the
Corporation in writing to the Investors, which period shall begin not more than
10 days prior to the effectiveness of the registration statement pursuant to
which such public offering shall be made and shall not last more than 90 days
after the effective date of such registration statement. The Corporation shall
obtain the agreement of any person permitted to sell shares of stock in a
registration to be bound by and to

                                       5
<PAGE>   8
comply with this Section 5 as if such person was an Investor hereunder.

         SECTION 6. PREPARATION AND FILING.

         If and whenever the Corporation is under an obligation pursuant to the
provisions of this Agreement to use its best efforts to effect the registration
of any Registrable Shares, the Corporation shall, as expeditiously as
practicable:

                  (a) use its best efforts to cause a registration statement
         that registers such Registrable Shares to become and remain effective
         for a period of 90 days or until all of such Registrable Shares have
         been disposed of (if earlier);

                  (b) furnish, at least five business days before filing a
         registration statement that registers such Registrable Shares, a
         prospectus relating thereto or any amendments or supplements relating
         to such a registration statement or prospectus, to one legal counsel
         selected by 75% of the Investors initiating such Registration, and
         timely identified to the Corporation (the "Investors' Counsel"), copies
         of all such documents proposed to be filed (it being understood that
         such five-business-day period need not apply to successive drafts of
         the same document proposed to be filed so long as such successive
         drafts are supplied to the Investors' Counsel in advance of the
         proposed filing by a period of time that is customary and reasonable
         under the circumstances);

                  (c) prepare and file with the Commission such amendments and
         supplements to such registration statement and the prospectus used in
         connection therewith as may be necessary to keep such registration
         statement effective for at least a period of 90 days or until all of
         such Registrable Shares have been disposed of (if earlier) and to
         comply with the provisions of the Securities Act with respect to the
         sale or other disposition of such Registrable Shares;

                  (d) notify in writing the Investors' Counsel of the receipt by
         the Corporation of any notification with respect to (i) any comments by
         the Commission with respect to such registration statement or
         prospectus or any amendment or supplement thereto or any request by the
         Commission for the amending or supplementing thereof or for additional
         information with respect thereto, (ii) the issuance by the Commission
         of any stop order suspending the effectiveness of such registration
         statement or prospectus or any amendment or supplement thereto or the
         initiation or threatening of any proceeding for that purpose and (iii)
         the suspension of the qualification of such Registrable Shares for sale
         in any jurisdiction or the initiation or threatening of any proceeding
         for such purposes;

                  (e) use its best efforts to register or qualify such
         Registrable Shares under such other securities or blue sky laws of such
         jurisdictions as the Investors reasonably request and do any and all
         other acts and things which may be reasonably necessary or advisable
         to enable the Investors to consummate the disposition in such
         jurisdictions of the

                                        6
<PAGE>   9
         Registrable Shares owned by the Investors; provided, however, that the
         Corporation will not be required to qualify generally to do business,
         subject itself to general taxation or consent to general service of
         process in any jurisdiction where it would not otherwise be required to
         do so but for this paragraph (e) or to provide any material undertaking
         or make any changes in its By-laws or the Amended and Restated
         Certificate of Incorporation of the Corporation which the Board of
         Directors determines to be contrary to the best interests of the
         Corporation or to modify any of its contractual relationships then
         existing;

                  (f) furnish to the Investors holding such Registrable Shares
         such number of copies of a summary prospectus, if any, or other
         prospectus, including a preliminary prospectus, in conformity with the
         requirements of the Securities Act, and such other documents as such
         Investors may reasonably request in order to facilitate the public sale
         or other disposition of such Registrable Shares;

                  (g) without limiting subsection (e) above, and subject in each
         case to the limitations contained therein, use its best efforts to
         cause such Registrable Shares to be registered with or approved by such
         other governmental agencies or authorities as may be necessary by
         virtue of the business and operations of the Corporation to enable the
         Investors holding such Registrable Shares to consummate the disposition
         of such Registrable Shares;

                  (h) notify the Investors holding such Registrable Shares on a
         timely basis at any time when a prospectus relating to such Registrable
         Shares is required to be delivered under the Securities Act within the
         appropriate period mentioned in subparagraph (a) of this Section 6, of
         the happening of any event as a result of which the prospectus included
         in such registration statement, as then in effect, includes an untrue
         statement of a material fact or omits to state a material fact required
         to be stated therein or necessary to make the statements therein not
         misleading in light of the circumstances then existing and, at the
         request of the Investors, prepare and furnish to such Investors a
         reasonable number of copies of a supplement to or an amendment of such
         prospectus as may be necessary so that, as thereafter delivered to the
         offerees of such shares, such prospectus shall not include an untrue
         statement of a material fact or omit to state a material fact required
         to be stated therein or necessary to make the statements therein not
         misleading in light of the circumstances then existing;

                  (i) subject to the execution of confidentiality agreements in
         form and substance satisfactory to the Corporation, make available upon
         reasonable notice and during normal business hours, for inspection by
         the Investors holding such Registrable Shares, any underwriter
         participating in any disposition pursuant to such registration
         statement and any attorney, accountant or other agent retained by the
         Investors or underwriter (collectively, the "Inspectors"), all
         pertinent financial and other records, pertinent corporate documents
         and properties of the Corporation (collectively, the

                                        7

<PAGE>   10
         "Records"), as shall be reasonably necessary to enable them to exercise
         their due diligence responsibility, and cause the Corporation's
         officers, directors and employees to supply all information (together
         with the Records, the "Information") reasonably requested by any such
         Inspector in connection with such registration statement. Any of the
         Information which the Corporation determines in good faith to be
         confidential, and of which determination the Inspectors are so
         notified, shall not be disclosed by the Inspectors unless (i) the
         disclosure of such Information is necessary to avoid or correct a
         misstatement or omission in the registration statement, provided that
         such disclosure is made only after consultation with the Corporation,
         (ii) the release of such Information is ordered pursuant to a subpoena
         or other order from a court of competent jurisdiction or (iii) such
         Information has been made generally available to the public, other than
         by any party hereto in breach of its obligations hereunder; the
         Investors agree that they will, upon learning that disclosure of such
         Information is sought in a court of competent jurisdiction, give notice
         to the Corporation and allow the Corporation, at the Corporation's
         expense, to undertake appropriate action to prevent disclosure of the
         Information deemed confidential;

                  (j) use its best efforts to obtain from its independent
         certified public accountants "cold comfort" letters in customary form
         and at customary times and covering matters of the type customarily
         covered by cold comfort letters under the circumstances;

                  (k) use its best efforts to obtain from its counsel an opinion
         or opinions in customary form;

                  (l) provide a transfer agent and registrar (which may be the
         same entity and which may be the Corporation) for such Registrable
         Shares;

                  (m) issue to any underwriter to which the Investors holding
         such Registrable Shares may sell shares in such offering certificates
         evidencing such Registrable Shares;

                  (n) list such Registrable Shares on any national securities
         exchange on which any shares of the Common Stock are listed or, if the
         Common Stock is not listed on a national securities exchange, use its
         best efforts to qualify such Registrable Shares for inclusion on the
         automated quotation system of the National Association of Securities
         Dealers, Inc. (the "NASD") or such other national securities exchange
         as the holders of seventy-five percent of such Registrable Shares shall
         reasonably request;

                  (o) otherwise use its best efforts to comply with all
         applicable rules and regulations of the Commission, including by making
         available to its securityholders earning statements that satisfy the
         provisions of Section 11 (a) of the Securities Act; and

                  (p) subject to all the other provisions of this Agreement, use
         its best efforts to take all other steps necessary to effect the
         registration of such Registrable Shares contemplated hereby.

                                       8
<PAGE>   11
         Each holder of the Registrable Shares, upon receipt of any notice from
the Corporation of any event of the kind described in Section 6(h) hereof, shall
forthwith discontinue disposition of the Registrable Shares pursuant to the
registration statement covering such Registrable Shares until such holder's
receipt of the copies of the supplemented or amended prospectus contemplated by
Section 6(h) hereof, and, if so directed by the Corporation, such holder shall
deliver to the Corporation all copies, other than permanent file copies then in
such holder's possession, of the prospectus covering such Registrable Shares at
the time of receipt of such notice.

         SECTION 7. EXPENSES.

         All expenses (other than underwriting discounts and commissions
relating to the Registrable Shares, as provided in the last sentence of this
Section 7) incurred by the Corporation in complying with Section 6, including,
without limitation, all registration and filing fees, fees and expenses of
complying with securities and blue sky laws, printing expenses, fees and
expenses of the Corporation's counsel and accountants and reasonable fees and
expenses of the Investors' Counsel, shall be paid by the Corporation in
connection with Registrations the costs of which the Corporation is required to
bear pursuant to Sections 2 and 3 hereof; provided, however, that all
underwriting discounts, selling commissions applicable to the Registrable Shares
and Other Shares shall become by the holders selling such Registrable Shares and
Other Shares, in proportion to the number of Registrable Shares and Other Shares
sold by each such holder.

         SECTION 8. INDEMNIFICATION.

                  (a) In connection with any registration of any Registrable
         Shares under the Securities Act pursuant to this Agreement, the
         Corporation shall indemnify and hold harmless the holders of
         Registrable Shares, each underwriter, broker or any other person acting
         on behalf of the holders of Registrable Shares and each other person,
         if any, who controls any of the foregoing persons within the meaning of
         the Securities Act against any losses, claims, damages or liabilities,
         joint or several (or actions in respect thereof), to which any of the
         foregoing persons may become subject under the Securities Act or
         otherwise, insofar as such losses, claims, damages or liabilities (or
         actions in respect thereof) arise out of or are based upon an untrue
         statement or allegedly untrue statement of a material fact contained in
         the registration statement under which such Registrable Shares were
         registered under the Securities Act, any preliminary prospectus or
         final prospectus contained therein or otherwise filed with the
         Commission, any amendment or supplement thereto or any document
         incident to registration or qualification of any Registrable Shares, or
         arise out of or are based upon the omission or alleged omission to
         state therein a material fact required to be stated therein or
         necessary to make the statements therein not misleading or, with
         respect to any prospectus, necessary to make the statements therein in
         light of the circumstances under which they were made not misleading,
         or any violation by the Corporation of the Securities Act or state
         securities or blue sky laws applicable to the Corporation and relating
         to action or inaction required of the Corporation in connection with
         such registration or qualification under such state

                                       9
<PAGE>   12
         securities or blue sky laws; and shall reimburse the holders of
         Registrable Shares, such underwriter, such broker or such other person
         acting on behalf of the holders of Registrable Shares and each such
         controlling person for any legal or other expenses reasonably
         incurrwith investigating or defending any such loss, claim, damage,
         liability or action; provided, however, that the Corporation shall not
         be liable in any such case to the extent that any such loss, claim,
         damage, liability or action (including any legal or other expenses
         incurred) arises out of or is based upon an untrue statement or
         allegedly untrue statement or omission or alleged omission made in said
         registration statement, preliminary prospectus, final prospectus,
         amendment, supplement or document incident to registration or
         qualification of any Registrable Shares in reliance upon and in
         conformity with written information furnished to the Corporation
         through an instrument duly executed by any holder of Registrable Shares
         or his or its counsel or underwriter specifically for use in the
         preparation thereof; provided further, however, that the foregoing
         indemnity agreement is subject to the condition that, insofar as it
         relates to any untrue statement, allegedly untrue statement, omission
         or alleged omission made in any preliminary prospectus but eliminated
         or remedied in the final prospectus (filed pursuant to Rule 424 of the
         Securities Act), such indemnity agreement shall not inure to the
         benefit of any Investor, underwriter, broker or other person acting on
         behalf of holders of the Restricted Shares from whom the person
         asserting any loss, claim, damage, liability or expense purchased the
         Restricted Shares which are the subject thereof, if a copy of such
         final prospectus had been made available to such person and such
         Investor, underwriter, broker or other person acting on behalf of
         holders of the Registrable Shares and such final prospectus was not
         delivered to such person with or prior to the written confirmation of
         the sale of such Registrable Shares to such person.

                  (b) In connection with any registration of Registrable Shares
         under the Securities Act pursuant to this Agreement, each holder of
         Registrable Shares shall severally and not jointly indemnify and hold
         harmless (in the same manner and to the same extent as set forth in the
         preceding paragraph (a) of this Section 8) the Corporation, each
         director of the Corporation, each officer of the Corporation who shall
         sign such registration statement, each underwriter, broker or other
         person acting on behalf of the holders of Registrable Shares and each
         person who controls any of the foregoing persons within the meaning of
         the Securities Act with respect to any statement or omission from such
         registration statement, any preliminary prospectus or final prospectus
         contained therein or otherwise filed with the Commission, any amendment
         or supplement thereto or any document incident to registration or
         qualification of any Registrable Shares, if such statement or omission
         was made in reliance upon and in conformity with written information
         furnished to the Corporation or such underwriter specifically for use
         in connection with the preparation of such registration statement,
         preliminary prospectus, final prospectus, amendment, supplement or
         document; provided, however, that the maximum amount of liability in
         respect of such indemnification shall be limited, in the case of each
         seller of Registrable Shares, to an amount equal to the net proceeds
         actually received by such Seller from the sale of Registrable Shares
         effected pursuant to such

                                       10
<PAGE>   13

         registration.

                  (c) Promptly after receipt by an indemnified party of notice
         of the commencement of any action involving a claim referred to in the
         preceding paragraphs of this Section 8, such indemnified party will, if
         a claim in respect thereof is made against an indemnifying party, give
         written notice to the latter of the commencement of such action. The
         failure of any indemnified party to notify an indemnifying party of any
         such action shall not (unless such failure shall have a material
         adverse effect on the indemnifying party) relieve the indemnifying
         party from any liability in respect of such action that it may have to
         such indemnified party on account of this Section 8. In case any such
         action is brought against an indemnified party, the indemnifying party
         will be entitled to participate in and to assume the defense thereof,
         jointly with any other indemnifying party similarly notified to the
         extent that it may wish, with counsel reasonably satisfactory to such
         indemnified party, and after notice from the indemnifying party to such
         indemnified party of its election so to assume the defense thereof, the
         indemnifying party shall not be responsible for any legal or other
         expenses subsequently incurred by the indemnified party in connection
         with the defense thereof; provided, however, that if any indemnified
         party shall have reasonably concluded that there may be one or more
         legal or equitable defenses available to such indemnified party which
         are additional to or conflict with those available to the indemnifying
         party, or that such claim or litigation involves or could have an
         effect upon matters beyond the scope of the indemnity agreement
         provided in this Section 8, the indemnifying party shall not have the
         right to assume the defense of such action on behalf of such
         indemnified party (but shall have the right to participate therein with
         counsel of its choice) and such indemnifying party shall reimburse such
         indemnified party and any person controlling such indemnified party for
         that portiny counsel retained by the indemnified party which is
         reasonably related to the matters covered by the indemnity agreement
         provided in this Section 8. If the indemnifying party is not entitled
         to, or elects not to, assume the defense of a claim, it will not be
         obligated to pay the fees and expenses of more than one counsel with
         respect to such claim.

                  (d) If the indemnification provided for in this Section 8 is
         held by a court of competent jurisdiction to be unavailable to an
         indemnified party with respect to any loss, claim, damage, liability or
         action referred to herein, then the indemnifying party, in lieu of
         indemnifying such indemnified party hereunder, shall contribute to the
         amounts paid or payable by such indemnified party as a result of such
         loss, claim, damage, liability or action in such proportion as is
         appropriate to reflect the relative fault of the indemnifying party on
         the one hand and of the indemnified party on the other in connection
         with the statements or omissions which resulted in such loss, claim,
         damage, liability or action as well as any other relevant equitable
         considerations. The relative fault of the indemnifying party and of the
         indemnified party shall be determined by reference to, among other
         things, whether the untrue or alleged untrue statement of a material
         fact or the omission or alleged omission to state a material fact
         relates to information supplied by the indemnifying party or by the
         indemnified party and the parties' relative intent, knowledge,

                                       11
<PAGE>   14
         access to information and opportunity to correct or prevent such
         statement or omission. The parties agree that it would not be just and
         equitable if contribution pursuant hereto were determined by pro rata
         allocation or by any other method or allocation which does not take
         account of the equitable considerations referred to herein). No person
         guilty of fraudulent misrepresentation shall be entitled to
         contribution from any person.

         SECTION 9. UNDERWRITING AGREEMENT.

         Notwithstanding the provisions of Sections 5, 6, 7 and 8, to the extent
that the Investors shall enter into an underwriting or similar agreement, which
agreement contains provisions covering one or more issues addressed in such
Sections, the provisions contained in such agreement addressing such issue or
issues shall control.

         SECTION 10. INFORMATION BY HOLDER.

         The Investors shall furnish to the Corporation such written information
regarding the Investors and the distribution proposed by the Investors as the
Corporation may reasonably request in writing and as shall be reasonably
required in connection with any registration, qualification or compliance
referred to in this Agreement.

         SECTION 11. EXCHANGE ACT COMPLIANCE.

         From the Registration Date or such earlier date as a registration
statement filed by the Corporation pursuant to the Exchange Act relating to any
class of the Corporation's securities shall have become effective, the
Corporation shall comply with all of the reporting requirements of the Exchange
Act applicable to it (whether or not it shall be required to do so, but
specifically excluding Section 14 of the Exchange Act if not then applicable to
the Corporation) and shall comply with all other public information reporting
requirements of the Commission which are conditions to the availability of Rule
144 for the sale of the Common Stock. The Corporation shall cooperate with the
Investors in supplying such information as may be necessary for the Investors to
complete and file any information reporting forms presently or hereafter
required by the Commission as a condition to the availability of Rule 144.

         SECTION 12. NO CONFLICT OF RIGHTS.

         The Corporation shall not, after the date hereof, grant any
registration rights which conflict with or impair the registration rights
granted hereby.

         SECTION 13. TERMINATION.

         This Agreement shall terminate and be of no further force or effect
when there shall no longer be any Registrable Shares outstanding.

                                       12
<PAGE>   15
         SECTION 14. SUCCESSORS AND ASSIGNS.

         This Agreement shall bind and inure to the benefit of the Corporation
and the Investors and, subject to Section 15, the respective successors and
assigns of the Corporation and the Investors.

         SECTION 15. ASSIGNMENT.

         Each Investor may assign its rights hereunder to any purchaser or
transferee of Registrable Shares; provided, however, that such purchaser or
transferee shall, as a condition to the effectiveness of such assignment, be
required to execute a counterpart to this Agreement agreeing to be treated as an
Investor whereupon such purchaser or transferee shall have the benefits of, and
shall be subject to the restrictions contained in, this Agreement as if such
purchaser or transferee was originally included in the definition of an Investor
herein and had originally been a party hereto.

         SECTION 16. ENTIRE AGREEMENT.

         This Agreement, the Securities Purchase Agreement, and the Stockholders
Agreement (as defined in the Securities Purchase Agreement), each dated as of
the date hereof, and the other writings referred to herein or therein or
delivered pursuant hereto or thereto, contain the entire agreement among the
Investors and the Corporation with respect to the subject matter hereof and
supersede all prior and contemporaneous arrangements or understandings with
respect thereto.

         SECTION 17. NOTICES.

         All notices, requests, consents and other communications hereunder to
any party shall be deemed to be sufficient if contained in a written instrument
delivered in person or sent by telecopy, nationally-recognized overnight courier
or first class registered or certified mail, return receipt requested, postage
prepaid, addressed to such party at the address set forth below or such other
address as may hereafter be designated in writing by such party to the other
parties:

                  (i)      if to the Corporation, to:

                  National Network Technologies Inc.
                  88 White Street
                  New York, NY 10013
                  Telephone: (212) 431-6007
                  Telecopy: (212) 334-0847
                  Attention: President

                  with a copy to:

                                       13
<PAGE>   16
                  Christy & Viener
                  620 Fifth Avenue
                  New York, NY 10020
                  Telephone: (212) 632-5500
                  Telecopy: (212) 632-5555
                  Attention: John F. Cambria, Esq.

                  (ii) if to the Investors, to their respective addresses set
                  forth on Schedule I hereto, with a copy to:

                  O'Sullivan Graev & Karabell, LLP
                  30 Rockefeller Plaza
                  New York, New York 10112
                  Telephone: (212) 408-2400
                  Telecopy: (212) 408-2420
                  Attention:     Robert Seber, Esq.

         All such notices, requests, consents and other communications shall be
deemed to have been delivered (a) in the case of personal delivery or delivery
by telecopy, on the date of such delivery, (b) in the case of dispatch by
nationally-recognized overnight courier, on the next business day following such
dispatch and (c) in the case of mailing, on the third business day after the
posting thereof.

         SECTION 18. MODIFICATIONS; AMENDMENTS; WAIVERS.

         The terms and provisions of this Agreement may not be modified or
amended, nor may any provision be waived, except pursuant to a writing signed by
the Corporation and the holders of at least 75% of the Registrable Shares then
outstanding.

         SECTION 19. COUNTERPARTS; FACSIMILE SIGNATURES.

         This Agreement may be executed in any number of counterparts, and each
such counterpart hereof shall be deemed to be an original instrument, but all
such counterparts together shall constitute but one agreement. Facsimile
counterpart signatures to this Agreement shall be acceptable at the Closing (as
defined in the Securities Purchase Agreement) if the originally executed
counterpart is delivered within a reasonable period thereafter.

         SECTION 20. HEADINGS.

         The headings of the various sections of this Agreement have been
inserted for convenience of reference only and shall not be deemed to be a part
of this Agreement.

                                       14
<PAGE>   17
         SECTION 21. GOVERNING LAW.

         This Agreement shall be governed by and construed in accordance with
the laws of the State of New York applicable to contracts made and to be
performed wholly therein by residents thereof.

                                       15
<PAGE>   18
         IN WITNESS WHEREOF, the parties hereto have executed this Registration
Rights Agreement on the date first written above.

                                      NATIONAL NETWORK TECHNOLOGIES

                                      INC.

                                      By:   /s/ Hugh O'Kane, Jr.
                                            -------------------------
                                             Name:  Hugh O'Kane, Jr.
                                             Title:  President

                                       INVESTORS:

                                       LAWRENCE, SMITH & HOREY III, L.P.

                                       BY:      LSH PARTNERS III, L.P.,
                                                ITS GENERAL PARTNER

                                       By: /s/ Richard W. Smith
                                           ----------------------------
                                              Richard W. Smith
                                              General Partner

                                       ABBOTT CAPITAL 1330 INVESTORS I, LP

                                       BY: ABBOTT CAPITAL 1330 GENPAR, LLC,
                                              ITS GENERAL PARTNER

                                       By: /s/ Thomas W. Hallagan
                                           --------------------------------
                                              Thomas W. Hallagan,
                                              Its Manager

Registration Rights Agreement Signature Page

                                       16
<PAGE>   19
                                                                      SCHEDULE I

                  INVESTORS

         Lawrence, Smith & Horey III, L.P.

         Abbott Capital 1330 Investors I, LP

                                       17

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