Document:

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                                                                   EXHIBIT 10.14

                       AMERICA ONLINE LATIN AMERICA, INC.
                   REGULATION S STOCK SUBSCRIPTION AGREEMENT

                                        June 12, 2000

Banco Itau, S.A
Rua Boa Vista 176
Sao Paulo, Brazil

Banco Banerj, S.A.
Rua da Alfandega 28
9th Floor
Rio de Janeiro, RJ, Brazil

Ladies and Gentlemen:

  WHEREAS, America Online Latin America, Inc., a Delaware corporation
(hereinafter, the "Company"), has proposed that it issue and sell to Banco Itau,
S.A., a Brazilian Sociedade Anonima ("Itau"), and Banco Banerj, S.A., a
Brazilian Sociedade Anonima (with Itau, each, a "Purchaser" and collectively,
the "Purchasers"), that number of shares (the "Shares") of the Company's Class A
Common Stock, $.01 par value per share (the "Class A Common Stock"), as is equal
in the aggregate, and calculated immediately after the consummation of the
Company's IPO (as defined herein), to twelve percent (12%) of the then
outstanding capital stock of the Company after giving effect to each such
issuance and sale, calculated on an as converted, fully diluted basis without
taking into account (i) the AOL Warrant or any other then outstanding warrants
and options to acquire (A) shares of Class A Common Stock or (B) any Common
Stock Equivalents or other Equity Securities (each as defined herein), or (ii)
any shares of Class A Common Stock or any Common Stock Equivalents or other
Equity Securities issued by the Company after the date hereof other than (A)
shares of Class A Common Stock issued in the IPO (as defined herein) and (B)
shares of Class A Common Stock, Common Stock Equivalents and other Equity
Securities issued to AOL, ODC and their Affiliates (each as defined herein) in
connection with the Reorganization (as defined herein).  As used in this
Agreement, the phrase "an as converted, fully diluted basis" means, as of any
date, a basis that includes the number of shares of Class A Common Stock of the
Company outstanding on such date plus the maximum number of shares of Class A
Common Stock that the Company may be required to issue pursuant to obligations
under Common Stock Equivalents issued and outstanding as of such date, whether
or not then currently exercisable; and

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THE SHARES OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE "ACT") AND MAY NOT BE OFFERED OR SOLD IN THE UNITED
STATES OR TO U.S. PERSONS (OTHER THAN DISTRIBUTORS) UNLESS SUCH SHARES ARE
REGISTERED UNDER THE ACT, OR AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF
THE ACT IS AVAILABLE.  IN ADDITION, HEDGING TRANSACTIONS INVOLVING THE SHARES
MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE ACT.
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  WHEREAS, the Purchasers wish to purchase the Shares from the Company, with
each Purchaser allocated such portion of the Shares as the Purchasers may
determine amongst themselves; and

  WHEREAS, each of AOL and ODC are executing this Agreement for the limited
purpose of joining in the covenants contained in Section 5.04 hereof.

  NOW THEREFORE, subject to the terms and conditions set forth below in this
Regulation S Stock Subscription Agreement (the "Agreement"), the Company agrees
to issue and sell to the Purchasers, and the Purchasers agree to purchase from
the Company, the Shares.  Terms with initial capital letters used herein without
immediate definition shall have the meanings given in Article IV.

                                   ARTICLE I
                          PURCHASE AND SALE OF SHARES

  1.01  The Company agrees to issue and sell to the Purchasers, and the
Purchasers agree to purchase, the Shares free and clear of all Liens (other than
those created by (i) any action of the Purchasers and (ii) the provisions of the
Related Agreements) at a purchase price per Share equal to the initial per share
price for the Class A Common Stock in the Company's IPO (as defined herein) (the
"Purchase Price").   The closing of the purchase and sale of the Shares shall
take place at the offices of Mintz, Levin, Cohn, Ferris, Glovsky and Popeo,
P.C., 701 Pennsylvania Ave., N.W., Washington, D.C., 20004 at 10:00 a.m. on the
third Business Day after satisfaction or waiver of all of the conditions to
closing set forth in Article III hereof, or at such other place, time and date
as the Purchasers and the Company shall mutually agree (the "Closing"). At the
Closing, the Company will issue and deliver such number of certificates
evidencing the Shares as reasonably may be requested by the Purchasers against
payment in full of the Purchase Price in such manner as may be agreed by the
parties.  The parties acknowledge that, absent agreement to the contrary, the
Purchase Price shall be paid by means of offsetting payments due to Itau from
the Company or its Subsidiaries pursuant to the provisions of the Marketing
Agreement (as defined herein).

  1.02  The Purchasers hereby represent, warrant and agree, jointly and
severally, as follows as of the date hereof and as of the date of the Closing:

  (a)  Investment Representations.  Each Purchaser is acquiring the Shares for
       --------------------------
its own account as the sole beneficial owner thereof for the purpose of
investment and not with a view to distribution or resale thereof except pursuant
to the provisions of Regulation S (as defined below) registration under the
Securities Act or exemption therefrom. The acquisition by each Purchaser of the
Shares acquired by it shall constitute a confirmation of this representation by
such Purchaser. Each Purchaser further represents that it understands and agrees
that all certificates evidencing any of the Shares, whether upon initial
issuance or upon any transfer thereof shall, until such Shares are registered
under the Securities Act or may be transferred in the United States without
registration thereunder pursuant to the provisions of Regulation S as
promulgated by the Securities Exchange Commission (the "SEC") under the
Securities Act ("Regulation S"), shall bear a legend, prominently stamped or
printed thereon, reading substantially as follows:

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          "These securities have not been registered under the Securities Act of
          1933, as amended (the "Act"), and may not be offered, sold, pledged or
          otherwise transferred except in accordance with the provisions of
          Regulation S promulgated under the Act, pursuant to registration under
          the Act, or pursuant to an available exemption from registration under
          the Act.  In addition, hedging transactions involving these securities
          may not be conducted unless in compliance with the Act."

The Company agrees to remove such legend from a certificate evidencing the
Shares reasonably promptly upon request of the registered holder thereof if the
securities evidenced thereby have been registered under the Securities Act or
may be publicly sold in the United States and to U.S. persons without
registration under the Securities Act.  Upon the reasonable request of the
Company, any holder making such a request shall be required to deliver to the
Company an opinion of counsel, in form and substance, and from counsel,
reasonably satisfactory to the Company, that the securities evidenced thereby
may be so publicly sold without registration under the Securities Act.

  In addition, each certificate representing the Shares shall, until such Shares
are registered under the Securities Act or otherwise may be publicly sold
without registration under the Securities Act, shall bear a legend, prominently
stamped or printed thereon, reading substantially as follows:

          "These securities have not been registered under the Securities Act of
          1933, as amended (the "Act"), and may not be offered, sold, pledged or
          otherwise transferred except pursuant to registration under the Act or
          pursuant to an available exemption from registration under the Act."

The Company agrees to remove such legend from a certificate evidencing the
Shares reasonably promptly upon request of the registered holder thereof if the
securities evidenced thereby have been registered under the Securities Act or
may be publicly sold without registration under the Securities Act.  Upon the
reasonable request of the Company, any holder making such a request shall be
required to deliver to the Company an opinion of counsel, in form and substance,
and from counsel, reasonably satisfactory to the Company, that the securities
evidenced thereby may be so publicly sold without registration under the
Securities Act.

  In addition, each certificate representing the Shares shall, for so long as
the Shares are subject to the restrictions contained in Section 10.1 of the
Registration Rights and Stockholders' Agreement, to be dated the date of the
Closing, by and between the Purchasers and the Company (the "Registration Rights
Agreement"), bear a legend substantially similar to the following:

          "The securities represented by this certificate are also subject to
          restrictions contained in that certain Registration Rights and
          Stockholders' Agreement, dated as of _____, 2000, by and between the
          Company, Banco Itau, S.A. and Banco Banerj, S.A.,

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          and may not be sold, pledged or otherwise transferred except upon
          compliance with the terms thereof. The Company will furnish a copy of
          the full text of such Registration Rights and Stockholders' Agreement
          to the registered holder of this certificate upon written request and
          without charge."

  The Company agrees to remove such legend from a certificate evidencing any of
the Shares reasonably promptly upon request of the registered holder thereof if
the restrictions contained in such agreement are no longer applicable to all of
the Shares evidenced by such certificate.

     (b) Transfer Restrictions Imposed by Securities Laws.  Each Purchaser
         ------------------------------------------------
understands and agrees that (i) no U.S. or foreign federal, state or local
governmental authority has made any finding or determination relating to the
fairness of the terms of the investment in the Company proposed hereunder and
the Shares have not been registered under the Securities Act and applicable
state or foreign securities laws, and, therefore, cannot be resold unless they
are subsequently registered under the Securities Act and applicable state and
foreign securities laws or unless an exemption from such registration is
available; (ii) such Purchaser may not resell or otherwise dispose of all or any
part of the Shares except as permitted by law, including, without limitation,
Regulation S and all other regulations promulgated under the Securities Act and
applicable state and foreign securities laws; (iii) except as is expressly set
forth in the Registration Rights Agreement, the Company does not have any
obligation to register the Shares under the Securities Act and applicable state
and foreign securities laws, and the Company has no present intention of
effecting any such registration; and, (iv) without prejudice to the Company's
obligations pursuant Section 9.5 of the Registration Rights Agreement,
Regulation S, Rule 144 or Rule 144A under the Securities Act may not be
available to such Purchaser as a basis for exemption from registration of the
Shares under the Securities Act. Each Purchaser agrees not to engage in hedging
transactions with regard to the Shares unless in compliance with the Securities
Act.  Each Purchaser agrees not to engage in any "directed selling efforts" (as
such term is defined in Rule 902(c) of Regulation S) with respect to any of the
Shares until the expiration of the "distribution compliance period" (as such
term is defined in Rule 902(f) of Regulation S).  The Company and the Purchasers
agree and acknowledge that the Company is required to, and shall refuse to,
register any transfer of the Shares not made in accordance with the provisions
of Regulation S, pursuant to registration under the Securities Act or pursuant
to an available exemption from registration under the Securities Act.

      (c)  Access to Information.  Each Purchaser has had the opportunity to ask
           ---------------------
questions and receive answers from the officers and other employees of the
Company regarding the terms and conditions of this Agreement, the transactions
contemplated hereby (including, without limitation, its acquisition of Shares),
as well as the affairs of the Company and its Subsidiaries and related matters.

      (d)  Corporate Representation.  (i) The individual(s) executing this
           ------------------------
Agreement on each Purchaser's behalf have been duly authorized to execute and
deliver this Agreement and the other agreements contemplated hereby, including,
without limitation, the Registration Rights Agreement, the Strategic Interactive
Services and Marketing Agreement of even date herewith by and between the
Company, America Online Brasil, Ltda. ("AOLB"), and Itau (the "Marketing

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Agreement"), and the related Escrow Agreement, to be dated the date of the
Closing, by and among the Company, AOLB, Itau and The Bank of New York, as
escrow agent (collectively, the "Related Agreements"); (ii) the signature of
each such individual is binding upon such Purchaser; (iii) such Purchaser is
duly organized, validly existing and in good standing in its jurisdiction of
incorporation or organization and has all requisite power and authority to
execute and deliver this Agreement and each of the Related Agreements; (iv) this
Agreement is, and upon the execution and delivery thereof, each of the Related
Agreements will be, legal, valid and binding obligations of each Purchaser,
enforceable in accordance with its terms, subject to laws of general application
from time to time in effect affecting creditors' rights and the exercise of
judicial discretion in accordance with general equitable principles; (v) the
execution and delivery of this Agreement and the Related Agreements and the
purchase of the Shares hereunder will not result in the violation of, constitute
a breach or default under, or conflict with, any term or provision of the
Estatutos, bylaws or other similar governing document of either of the
Purchasers or, to its knowledge, a breach or default under any material
agreement or any judgment, decree, order, law, rule, statute or regulation by
which it is bound or which is applicable to it; and (vi) all corporate or other
action on the part of the Purchasers necessary for the authorization, execution,
delivery and performance of this Agreement and the Related Agreements has been
taken.

      (e)  No Reliance on Prospectus.  Each Purchaser understands that the
           -------------------------
Company filed a Registration Statement on Form S-1 with the SEC on January 20,
2000, File No. 333-95051, as amended by Amendment No. 1 thereto filed with the
SEC on February 10, 2000, and as further amended by Amendment No. 2 thereto
filed with the SEC on March 14, 2000, Amendment No. 3 thereto filed with the SEC
on March 21, 2000, Amendment No. 4 thereto filed with the SEC on March 24, 2000
and Amendment No. 5 thereto filed with the SEC on March 31, 2000 (as so amended,
together with all exhibits thereto, the "Registration Statement"), related to
the contemplated initial public offering of the Company's Class A Common Stock
(the "IPO"). Each Purchaser further understands that the Company's preliminary
prospectus included as part of the Registration Statement (the "Prospectus") is
subject to revision before the Registration Statement is declared effective,
that the Prospectus in its current form may contain untrue statements of
material fact, may contain statements that are materially misleading or may omit
to state material facts that are necessary to make the statements contained
therein not misleading, and such Purchaser acknowledges that it is not relying
on any of the information contained in the Registration Statement or the
Prospectus in connection with its decision to execute this Agreement and the
Related Agreements and to make an investment in the Shares.

      (f)  Litigation.  There is no action, suit, claim, litigation, proceeding,
           ----------
investigation, arbitration or governmental inquiry, at law or in equity, or
before or by any Federal, state, municipal or other governmental department,
commission, board, bureau, agency or instrumentality, domestic or foreign, or
arbitration involving private parties (collectively, a "Proceeding") pending or,
to the knowledge of the Purchasers, threatened against either Purchaser or any
of its Subsidiaries or Affiliates or affecting any of its or their properties or
assets, which does or likely would, if adversely determined against a Purchaser
or any of its Subsidiaries or Affiliates adversely affect the ability of the
Purchasers to consummate the transactions contemplated hereby and by the Related
Agreements. There are no Proceedings pending or, to either Purchaser's
knowledge, threatened against a Purchaser or any of its Subsidiaries which might
call into question the validity of this Agreement or any of the Related
Agreements.

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     (g) Governmental Filings and Consents.  No registration or filing with, or
         ---------------------------------
consent or approval of or other action by, any Federal, state or other
governmental agency or instrumentality, domestic or foreign, under laws and
regulations thereof as now in effect (including, without limitation, the
Securities Act) is or will be necessary for the valid execution, delivery and
performance by the Purchasers of this Agreement and the Related Agreements other
than filings required to be made pursuant to the pre-merger notification
requirements of the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as
amended, and the rules and regulations promulgated thereunder (the "HSR Act"),
the notifications required under Law 8.884 of June 11, 1994 and Resolution
#15/98 of the Conselho Administrativo de Defesa Economica promulgated thereunder
(the "BAT Law"), and any approval of the Brazilian Central Bank that may be
required in connection with any payment by the Purchasers of any funds in U.S.
Dollars, except for such registrations, filings, approvals and consents, which
the failure to make or obtain would not, either individually or in the
aggregate, have a material adverse effect on the ability of the Purchasers to
consummate the transactions contemplated hereby and by the Related Agreements.
No consents of any Person will be necessary for the valid execution, delivery
and performance by the Purchasers of this Agreement and the Related Agreements,
and the purchase by the Purchasers of the Shares except for such consents, which
the failure to obtain would not, either individually or in the aggregate, have
an adverse effect on the ability of the Purchasers to consummate the
transactions contemplated hereby and by the Related Agreements.

     (h) Regulation S.  Neither Purchaser is a "U.S. person" as such term is
         ------------
defined in Rule 902(k) promulgated under Regulation S.  Neither Purchaser is
acquiring the Shares for the account or benefit of a U.S. person.  Neither
Purchaser is a "Distributor" or a "Dealer" as such terms are defined in Rule 902
promulgated under Regulation S of the Securities Act.  Each Purchaser covenants
that neither it nor any Affiliate, nor any other person or entity acting on its
or their behalf, has the intention of entering, or will enter into any hedging
transaction in violation of the provisions of Regulation S.

          (i)  Banco Banerj.  Not less than seventy five percent (75%) of (a)
               ------------
the outstanding equity securities of and (b) the voting power entitled to be
cast at elections for directors ("Voting Power") of, Banco Banerj is held,
directly or indirectly, by Itau and/or Itausa -Investimentos Itau, S.A., a
Brazilian Sociedade Anonima ("Itausa").

                                  ARTICLE II
                 REPRESENTATIONS AND WARRANTIES OF THE COMPANY

The Company represents, warrants and agrees as follows as of the date hereof and
as of the date of the Closing:

     2.01    Incorporation, Standing and Qualification of the Company.  The
             --------------------------------------------------------
Company and each of its Subsidiaries is a corporation or other entity duly
incorporated or organized, validly existing and in good standing under the laws
of the jurisdiction of its incorporation or organization.  The Company and each
of its Subsidiaries has the requisite power and authority to own, lease and
operate its properties and to carry on its business as now being conducted and
as proposed to be conducted.  The Company and each of its Subsidiaries is
qualified as a foreign corporation and in

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good standing in all U.S. states and foreign countries, except in such
jurisdictions where the failure to be so duly qualified or licensed or in good
standing has not had and is not likely to have, either individually or in the
aggregate, a material adverse effect on the business, assets, results of
operations or financial condition of the Company and its Subsidiaries, taken as
a whole (a "Company Material Adverse Effect").

     2.02 Subsidiaries.  Except as set forth on Schedule 2.02 of the disclosure
          ------------                          -------------
letter delivered by the Company to the Purchasers on or prior to the date hereof
(the "Disclosure Letter"), the Company does not have any Subsidiaries or
otherwise (i) own of record or beneficially, directly or indirectly, (A) any
shares of capital stock of any other corporation or (B) any participating
interest in any partnership, joint venture or other non-corporate business
enterprise, or (ii) control, directly or indirectly, any other Person.

     2.03         Corporate Power and Authority.  The Company has the requisite
                  -----------------------------
power and authority to execute and deliver this Agreement and the Related
Agreement, to perform its obligations hereunder and thereunder, and to engage in
the transactions contemplated hereby and thereby.  All corporate action on the
part of the Company necessary for the authorization, execution delivery and
performance of this Agreement and the Related Agreements and the authorization,
sale, issuance and delivery of the Shares has been taken. The individuals
executing this Agreement, the Related Agreements and the Shares on its behalf
have been duly authorized to execute and deliver this Agreement, the Related
Agreements and the Shares and the signature of each such individual is valid and
binding upon the Company.  This Agreement is, and upon the execution and
delivery thereof, each of the Related Agreements will be, legal, valid and
binding obligations of the Company, enforceable in accordance with its terms,
subject to laws of general application from time to time in effect affecting
creditors' rights and the exercise of judicial discretion in accordance with
general equitable principles.

     2.04         Charter and By-Laws; Letter Agreement.
                  -------------------------------------

     (a) The Company and each of its Subsidiaries has made available to the
Purchasers true, correct and complete copies of its Certificate of Incorporation
and By-Laws or other governing instruments, as applicable, and all amendments to
and restatements of each as of the date hereof.

     (b) Each of the documents currently held by Mintz, Levin, Cohn, Ferris,
Glovsky and Popeo, P.C., pursuant to the Letter Agreement, dated as of January
20, 2000, by and between the Company, America Online, Inc. ("AOL"), Riverview
Media Corp. ("ODC") and Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.,
including, without limitation, the Restated Certificate of Incorporation of the
Company (the "Restated Certificate of Incorporation") and the Restated By-Laws
of the Company, is in the form of such document filed as an exhibit to the
Registration Statement as of the date of this Agreement, if so filed. True and
correct copies of such Letter Agreement (the "Letter Agreement"), and the
Contribution Agreement, dated as of January 20, 2000, by and between AOL, ODC
and the Company (the "Contribution Agreement") have been made available to the
Purchasers.

     2.05         Litigation; Compliance with Laws; Bankruptcy
                  --------------------------------------------

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     (a) Litigation.  Except as set forth on Schedule 2.05 of the Disclosure
         ----------                          -------------
Letter, there is no Proceeding pending or, to the Knowledge of the Company,
threatened against the Company or any of its Subsidiaries or Affiliates or
affecting any of its or their properties or assets, or, to the Knowledge of the
Company, against any officer, employee, consultant or holder of any of the
capital stock of the Company relating to the Company or any of its Subsidiaries
or Affiliates or its or their businesses, which does or likely would, if
adversely determined against the Company or any of its Subsidiaries or
Affiliates, (i) have a Company Material Adverse Effect or (ii) adversely affect
the ability of the Company to consummate the transactions contemplated hereby
and by the Related Agreements.  There are no Proceedings pending or, to the
Company's Knowledge, threatened which might call into question the validity of
this Agreement, any of the Shares, or any of the Related Agreements. Except as
set forth on Schedule 2.05 of the Disclosure Letter, there is no Proceeding by
             -------------
the Company or any of its Subsidiaries pending or threatened against others.

     (b) Compliance with Laws.  The Company and each of its Subsidiaries has
         --------------------
complied with, and is not in violation of or in default (with due notice or
lapse of time or both) with respect to, any laws, governmental rules,
governmental regulations, governmental orders, judgments, decrees, writs,
injunctions and awards of any arbitration, court or governmental authority
applicable to it and its business, operations, properties, assets, products and
services, the violation of which or default under which would have a Company
Material Adverse Effect, and the Company and each of its Subsidiaries has all
permits, licenses and other authorizations required to conduct its and their
business as currently conducted, except where the failure so to obtain such
permits, licenses and other authorizations has not had, and is not likely to
have, either individually or in the aggregate, a Company Material Adverse
Effect.

     (c) Bankruptcy.  Neither the Company nor any of its Subsidiaries has
         ----------
admitted in writing its inability to pay its debts generally as they become due,
filed or consented to the filing against it of a petition in bankruptcy or a
petition to take advantage of any insolvency act, made an assignment for the
benefit of creditors, consented to the appointment of a receiver for itself or
for the whole or any substantial part of its property, or had a petition in
bankruptcy filed against it, been adjudicated as bankrupt, or filed a petition
or answer seeking reorganization or arrangement under the Federal bankruptcy
laws or any other law or statute of the United States of America or any other
jurisdiction.

     2.06       Violations of Charter Provisions and Other Instruments. Neither
                ------------------------------------------------------
the Company nor any of its Subsidiaries is in violation or default (with due
notice or lapse of time or both) of its charter, By-laws or other corporate
restriction, or of any agreement or instrument to which it is a party, except in
the case of such agreements or instruments for such violations or defaults,
which, individually or in the aggregate, would not have a Company Material
Adverse Effect.  Neither the authorization, execution, delivery or performance
of this Agreement or the Related Agreements, nor the sale, issuance and delivery
of the Shares, nor the consummation of the transactions herein and therein
contemplated, nor the fulfillment of or compliance with the terms hereof and
thereof, will conflict with or result in a breach, default or violation (with
due notice or lapse of time or both) of any of the terms of the charter or By-
laws or any other corporate restriction, or of any statute, law, rule or
regulation, or of any judgment, decree, writ, injunction, order or award of any
arbitrator, court or governmental authority, or of any agreement or instrument
to which the Company and each of its Subsidiaries is a party, or result in the
creation or imposition of any Lien upon any of the assets of the Company and
each of its Subsidiaries, except for conflicts, violations, breaches, or

                                      -8-
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defaults under agreements or instruments or Liens, which, individually or in the
aggregate, would not have a Company Material Adverse Effect.

     2.07         Governmental Approvals; Consents. Except as set forth on
                  --------------------------------
Schedule 2.07 of the Disclosure Letter, and subject to the accuracy of the
-------------                         -
representations and warranties of the Purchasers set forth in Section 1.02, no
registration or filing with, or consent or approval of or other action by, any
Federal, state or other governmental agency or instrumentality, domestic or
foreign, under laws and regulations thereof as now in effect (including, without
limitation, the Securities Act) is or will be necessary for the valid execution,
delivery and performance by the Company of this Agreement and the issuance, sale
and delivery of the Shares, other than filings required to be made pursuant to
the HSR Act and BAT Law.  Assuming the accuracy in all material respects of the
representations and warranties of the Purchasers contained in Section 1.02, the
Company has complied in all material respects with the requirements of
Regulation S in order to qualify the issuance and sale of the Shares to the
Purchasers for the exemption provided by Regulation S.  No consents of any
Person will be necessary for the valid execution, delivery and performance by
the Company of this Agreement and the Related Agreements, and the issuance, sale
and delivery of the Shares except for such consents, which the failure to obtain
would not, either individually or in the aggregate, have a Company Material
Adverse Effect or an adverse effect on the ability of the Company to issue the
Shares and consummate the transactions contemplated hereby or by the Related
Agreements.

     2.08  Tax Returns and Payments  The Company and each of its Subsidiaries
           ------------------------
has accurately prepared and timely filed all required tax returns and reports
(other than those not required to be filed by applicable law or regulation) and
has paid, or adequately provided for the payment of, all taxes, assessments and
other governmental charges imposed upon it or upon any of its assets, income or
franchises, other than any such charges that are currently payable without
penalty or interest, including, without limitation, all taxes which the Company
or any of its Subsidiaries is obligated to withhold from amounts owing to
employees, creditors and third parties except for such taxes which the failure
to pay in a timely manner would not, either individually or in the aggregate,
have a Company Material Adverse Effect. Adequate reserves have been established
for all taxes accrued but not yet payable. The Federal income tax returns of the
Company have never been audited by the U.S. Internal Revenue Service or other
taxing authority, domestic or foreign. No deficiency assessment with respect to
or proposed adjustment of the Company's and/or any of its Subsidiaries' Federal,
state, county or local taxes, domestic or foreign, is pending or threatened.
There is no tax Lien, whether imposed by any Federal, state, county or local
taxing authority of any jurisdiction, outstanding against the assets, properties
or business of the Company and/or any of its Subsidiaries except for such Liens
as would not, either individually or in the aggregate, have a Company Material
Adverse Effect.

     2.09  Financial Information.
           ---------------------

     (a)  The Company has previously delivered to the Purchasers (i) the audited
consolidated balance sheets of the Company as of June 30, 1999 and the related
statements of income, cash flow and shareholders' equity for the periods then
ended (the "Audited Company Financial Statements") and (ii) drafts of the
unaudited consolidated balance sheet of the Company as of March 31, 2000, and
the related statements of income, cash flow and shareholders' equity for the
nine-month period then ended (the "Unaudited Company

                                      -9-
<PAGE>

Financial Statements," and together with the Audited Company Financial
Statements, the "Company Financial Statements"). The Company shall deliver to
the Purchasers copies of similar financial statements prepared in respect of any
subsequent quarterly or annual periods promptly after their preparation and
finalization.

     (b) The Company Financial Statements and each of the additional financial
statements delivered to the Purchasers pursuant to the provisions of Section
2.09(a) when so delivered (A) are and will be in accordance with the books and
records of the Company, (B) fairly present the financial condition of the
Company as at the respective dates indicated and the results of operations of
the Company for the respective periods indicated and (C) have been or will be
prepared in accordance with United States generally accepted accounting
principles consistently applied throughout the periods indicated therein
("GAAP"), except as indicated therein and except for the absence of complete
footnote disclosure as required by GAAP and subject to changes resulting from
normal year-end audit adjustments, which adjustments shall not in any event have
a Company Material Adverse Effect.

     2.10 ERISA. Except as set forth on Schedule 2.10 of the Disclosure Letter,
          -----                         -------------
neither the Company nor any of its Subsidiaries is a party to, sponsors,
maintains or contributes to, or is required to contribute to, any bonus,
deferred compensation, incentive compensation, stock purchase, stock option,
severance or termination pay, hospitalization or other medical, life or other
insurance, supplemental unemployment benefits, profit-sharing, pension, or
retirement plan, program, agreement or arrangement.

     2.11 Title to Assets   Neither the Company nor any of its Subsidiaries owns
          ---------------
any real property.  The Company and each Subsidiary has good and
merchantable title to all of its assets free of any Liens, except (i) mechanics
liens not material to the Company or such Subsidiary or any property to which
such Liens relate or Liens for current taxes not yet due and payable, (ii) those
Liens which would not have a Company Material Adverse Effect and (iii) those
Liens listed on Schedule 2.11 of the Disclosure Letter.  The Company and each
                -------------
Subsidiary enjoys peaceful and undisturbed possession under all leases (both
capital and operating leases) under which it is operating, and all said leases
are valid and subsisting and in full force and effect except for such leases as
to which the failure to be valid and subsisting would not, either individually
or in the aggregate, have a Company Material Adverse Effect.

     2.12 Intellectual Property Rights.
          ----------------------------

     (a)  Schedule 2.12 of the Disclosure Letter sets forth, for the
          -------------
Intellectual Property Rights, a complete and accurate list of all (i) patents
and patent applications; (ii) Trademark registrations (including Internet domain
registrations), Trademark applications, and material unregistered Trademarks;
(iii) copyright registrations, copyright applications, and material unregistered
copyrights, and in each case any license thereof or any license of any other
material Intellectual Property Rights (the "License Agreements"), in any event
which are material to the Company's operation of its business. Such list
includes, for each of the foregoing, the applicable record owner, jurisdiction
and registration and/or application number, and the date issued (or filed).

                                      -10-
<PAGE>

     (b) Schedule 2.12 of the Disclosure Letter lists all Software which is
         -------------
owned, licensed, leased or otherwise used by the Company or any Subsidiary and
which is material to the Company's operation of its business, and identifies
which of such Software is owned, licensed, leased, or otherwise used, as the
case may be.

     (c) The Company and/or its Subsidiaries owns or has a valid right to the
Intellectual Property Rights necessary to conduct its business (i) as now
conducted and (ii) as now proposed to be conducted except for such Intellectual
Property as to which the failure to own or otherwise have a right to use would
not, either individually or in the aggregate, have a Company Material Adverse
Effect.  Except as specified on Schedule 2.12 of the Disclosure Letter, neither
                                -------------
the Company nor any Subsidiary has any obligation to compensate any Person for
the use of any such Intellectual Property as to which the failure to own or
otherwise have a right to use would, either individually or in the aggregate,
have a Company Material Adverse Effect.

     (d) Neither the Company, its Subsidiaries nor any of its or their officers
has received written notice of, and there are no claims pending or, to the
Company's Knowledge, threatened, that the Intellectual Property Rights owned or
licensed by the Company or any Subsidiary or the use or ownership thereof by the
Company or any such Subsidiary infringes, dilutes, violates or conflicts with
any such right of any third party or are invalid or unenforceable, which
infringement, dilution, violation or conflict if proven, would, either
individually or in the aggregate, have a Company Material Adverse Effect and, to
the Knowledge of the Company, there is no valid basis for any such claim.

     (e) All Trademarks which are material to the business of the Company (the
"Material Trademarks") have been in continuous use by AOL, the Company or a
Subsidiary of either and there has been no prior use of such Material Trademarks
by any third party other than AOL, the Company or a Subsidiary of either which
would confer upon said third party superior rights in such Material Trademarks;
the Company believes that AOL, the Company or a Subsidiary have adequately
policed the Material Trademarks against third party infringement; and the
registered Material Trademarks have been continuously used in the form appearing
in, and in connection with the goods and services listed in, their respective
registration certificates.

     (f) The Company and its Subsidiaries have taken and will take reasonable
measures to protect the confidentiality of Trade Secrets, including requiring
its employees and other parties having access thereto to execute written non-
disclosure agreements.  To the Knowledge of the Company, no Trade Secret
material to the operation of the Company's business has been disclosed or
authorized to be disclosed to any third party other than pursuant to a non-
disclosure agreement that the Company believes adequately protects Company's and
its Subsidiaries' proprietary interests in and to such Trade Secrets.

     2.13 Proprietary Information of Third Parties.  To the Company's Knowledge,
          ----------------------------------------
no third party has claimed that any Person employed by or affiliated
with the Company or any Subsidiary has (a) violated any of the terms or
conditions of his or her employment, non-competition, non-disclosure or
inventions agreement with such third party in any material respect, (b)
disclosed or utilized any trade secret or proprietary information or
documentation of such third party or (c) interfered in the employment
relationship between such third party and any of its present

                                      -11-
<PAGE>

or former employees which violation, disclosure, utilization or interference
would, if proven, have a Company Material Adverse Effect.

     2.14 Capitalization; Status of Capital Stock.  Effective as of the time
          ---------------------------------------
immediately prior to the IPO, the Company will have a total authorized
capitalization consisting of (i) shares of common stock, $.01 par value par
share, some of which will be designated as Class A Common Stock, none of which
will be issued and outstanding, which shares will be issued in connection with
the IPO, some of which are designated as Class B Common Stock, none of which
will be issued and outstanding or issued in connection with the IPO or the
transactions contemplated hereby, and some of which will be designated as Class
C Common Stock, none of which will be issued and outstanding or issued in
connection with the IPO or the transactions contemplated hereby, and (ii) shares
of preferred stock, $.01 par value per share, some shares of which are
designated as Series B Cumulative Redeemable Preferred Stock (the "Series B
Preferred"), none of which will be issued and outstanding but which will, upon
consummation of the IPO and the transactions contemplated hereby and assuming
(i) no further issuances of capital stock by the Company after the date hereof
and disregarding the shares of Class A Common Stock issued in the IPO,
constitute 44% of the outstanding capital stock of the Company, and some shares
of which will be designated as Series C Cumulative Redeemable Preferred Stock
(the "Series C Preferred"), none of which will be issued and outstanding but
which will, upon consummation of the IPO and the transactions contemplated
hereby and assuming no further issuances of capital stock by the Company after
the date hereof and disregarding the shares of Class A Common Stock issued in
the IPO, constitute 44% of the outstanding capital stock of the Company.
Effective as of the closing date of the IPO, all the outstanding shares of
capital stock of the Company will have been duly authorized, validly issued and
will be fully paid and non-assessable and no personal liability will attach to
the ownership thereof. The designations, powers, preferences, rights,
qualifications, limitations and restrictions in respect of the authorized
capital stock of the Company are and will be as of the closing date of the IPO
as set forth in the Restated Certificate of Incorporation, and all such
designations, powers, preferences, rights, qualifications, limitations and
restrictions will be, upon filing of such Restated Certificate of Incorporation
with the Delaware Secretary of State, valid, binding and in full force and
effect in accordance with all applicable laws. The Shares, will, immediately
after the closing of the IPO and the transactions contemplated hereby and
assuming no further issuances of capital stock by the Company after the date
hereof and after giving effect to the issuance and sale of the Shares,
constitute 12.0% of the issued and outstanding capital stock of the Company
calculated on an as converted, fully diluted basis without taking into account
(i) any then outstanding options or warrants to acquire (A) shares of Class A
Common Stock or (B) any Common Stock Equivalents or other Equity Securities or
(ii) any shares of Class A Common Stock, any Common Stock Equivalents or other
Equity Securities issued by the Company after the date hereof other than (A)
shares issued in the IPO and (B) shares of Class A Common Stock, Common Stock
Equivalents and other Equity Securities issued by the Company in connection with
the Reorganization. The Shares, when issued and delivered in accordance with the
terms hereof, will be duly authorized, validly issued, fully paid and non-
assessable, free and clear of all Liens or restrictions imposed by or through
the Company except as set forth in the Registration Rights Agreement.

     Except for the Shares, except as set forth on Schedule 2.14 of the
                                                   -------------
Disclosure Letter, and except for shares of Common Stock and Common Stock
Equivalents as may be issued by the

                                      -12-
<PAGE>

Company after the date hereof, there are no subscriptions, options, warrants or
other rights (contingent or otherwise) to purchase or otherwise acquire shares
of capital stock or other equity securities of the Company authorized, issued or
outstanding, nor is or will the Company be obligated in any other manner to
issue shares of its capital stock, subscriptions, warrants, options, convertible
securities, or other such rights or to distribute to holders of any of its
equity securities any evidence of indebtedness or asset. As of the closing date
of the IPO, shares of Class A Common Stock representing not more than five
percent (5%) of the authorized capital stock of the Company will be authorized
for issuance pursuant to the Company's 2000 Stock Option Plan. Except as set
forth in Schedule 2.14 of the Disclosure Letter, or as contemplated by this
         -------------
Agreement or the Registration Rights Agreement (i) there are no restrictions on
the transfer of shares of equity securities of the Company other than those
imposed by relevant state and Federal securities laws and (ii) there are no
agreements, understandings, proxies, trusts or other collaborative arrangements
concerning the voting, pledge or purchase and sale of the equity securities of
the Company to which the Company is a party or of which it has Knowledge after
due inquiry. Except as set forth in Schedule 2.14 of the Disclosure Letter, no
                                    -------------
holder of any security of the Company is entitled to preemptive, first refusal
or similar statutory or contractual rights, either arising pursuant to any
agreement or instrument to which the Company is a party, or which are otherwise
binding upon the Company, or to the best of the Company's Knowledge, to which
any other Person is a party, and all such rights have been duly waived with
respect to the issuance of the Shares. Except as provided for in the Company's
Restated Certificate of Incorporation, or as set forth in the attached Schedule
                                                                       --------
2.14 of the Disclosure
----
Letter, the Company has no obligation (contingent or otherwise) to purchase,
redeem or otherwise acquire any of its equity securities or any interest therein
or to pay any dividend or make any other distribution in respect thereof.  The
offer and sale of all capital stock and other securities of the Company issued
before the Closing complied with or were exempt from all applicable Federal and
state securities laws and no stockholder has a right of rescission or damages
with respect thereto.

     2.15  Absence of Undisclosed Liabilities.  Except (a) for liabilities and
           ----------------------------------
obligations incurred in the ordinary course of business, (b) as reflected in
the Unaudited Company Financial Statements, or (c) as otherwise disclosed herein
or in Schedule 2.15 of the Disclosure Letter, since June 30, 1999, none of the
      -------------                         -
Company or any of its Subsidiaries has incurred any material liabilities or
obligations of any nature whatsoever (whether direct, indirect, accrued,
contingent or otherwise).

     2.16  Absence of Certain Changes.  Except as disclosed on Schedule 2.16 of
           --------------------------                          -------- ----
the Disclosure Letter or as reflected in the Unaudited Company Financial
Statements, since June 30, 1999, neither of the Company nor any of its
Subsidiaries has suffered any Company Material Adverse Effect.

     2.17  Insurance  The Company and each Subsidiary carries insurance with
           ---------
financially sound and reputable insurance companies or associations, in such
amounts and covering such risks as the Company reasonably believes are adequate
and customary for the type and scope of its property and business, but in any
event in amounts sufficient to prevent the Company or such Subsidiary from
becoming a co-insurer.

     2.18  Registration Rights.  Other than pursuant to the terms of the
           -------------------
Registration Rights Agreement, to be dated the effective date of the
Reorganization, by and between the Company,

                                      -13-
<PAGE>

America Online, Inc. and Riverview Media Corp., and the Registration Rights
Agreement, no Person has demand or other rights to cause the Company to file any
registration statement under the Securities Act relating to any securities of
the Company or any right to participate in any such registration.

     2.19       Employees.  Except as set forth in Schedule 2.19 of the
                ---------                          -------------
Disclosure Letter, no employee of the Company or any Subsidiary has an
employment agreement or understanding, whether oral or written, with the Company
or such Subsidiary which is not terminable on notice by the Company or such
Subsidiary without cost or other contractually mandated liability to the Company
or such Subsidiary.  The Company and each Subsidiary has complied in all
material respects with all applicable laws, domestic and foreign, relating to
the employment of labor, including provisions relating to wages, hours, equal
opportunity, collective bargaining and the payment of Social Security and other
taxes, and with ERISA, in any event where the failure to so comply could have a
Company Material Adverse Effect.

     2.20       Labor Relations. There are no unfair labor practice charges,
                ---------------
pending trials with respect to unfair labor practice charges, pending grievance
proceedings or adverse decisions of any labor relations board against the
Company or any Subsidiary or relating to the Company's or such Subsidiary's
employees or consultants which, if decided adversely to the Company or such
Subsidiary, would have a Company Material Adverse Effect.  Furthermore, to the
Knowledge of the Company, relations with employees and consultants of the
Company and its Subsidiaries are good and the Company and its Subsidiaries have
no reason to believe that any such labor difficulties will arise in the
foreseeable future.

     2.21       Environmental Matters. Neither the Company nor any Subsidiary is
                ---------------------
in violation in any material respect of any applicable statute, law or
regulation relating to the environment or occupational safety and health, and to
the Company's Knowledge, no material expenditures will be required in order to
comply with any such statute, law or regulation except in the ordinary course of
doing business and except for such expenditures as will not have a Company
Material Adverse Effect.

     2.22  Transactions with Certain Persons.  Except as disclosed in Schedule
            ---------------------------------                         --------
2.22 of the Disclosure Letter, no Board member, director, officer, employee or
----
affiliate of the Company or any of its Subsidiaries (each, a "Related Person")
is, or has in the last 3 years been, a party to any contract, agreement,
arrangement or transaction with the Company or any of its Subsidiaries which
contracts, agreements, arrangements or transactions are on terms and conditions
substantially less favorable to the Company than those that could have been
obtained from an unrelated third party.

     2.23  Material Contracts. Schedule 2.23 of the Disclosure Letter sets
           ------------------  -------------
forth a list of all contracts, agreements or arrangements to which the Company
or any of its Subsidiaries is a party or otherwise bound (i) which involve
payment or receipt of an amount in excess of US$1,000,000 in any calendar year;
(ii) pursuant to which the Company or any Company Subsidiary has acquired or
disposed of another business entity or all or substantially all of the assets
thereof; (iii) relating to indebtedness (including sale and leaseback and
capitalized lease transactions and other similar financing transactions), or
guarantees of indebtedness, providing for payment or repayment in excess of
US$500,000; (iv) providing for the indemnification by the

                                      -14-
<PAGE>

Company or any of its Subsidiaries of any Person in any amount material to the
Company, except those entered into in the ordinary course of business; (v) any
material joint venture, partnership or similar documents or agreements; (vi)
limiting or purporting to limit the ability of the Company or any of its
Subsidiaries to own, operate, sell, transfer, pledge or otherwise dispose of any
assets having an aggregate value in excess of US$500,000; (vii) which purports
to limit in any respect the manner in which, or the localities in which, any
business may be conducted; (viii) providing for future payments that are
conditioned, in whole or in part, on a change of control of the Company or any
of its Subsidiaries; and (ix) not made in the ordinary course of business which
is material to the Company and its Subsidiaries taken as a whole or which would
prohibit or materially delay the consummation of the transactions contemplated
by this Agreement (collectively, the "Material Contracts").

  Each Material Contract is valid and binding on the Company (or, to the extent
any of its Subsidiaries is a party, such Subsidiary) and is in full force and
effect.  The Company and each of its Subsidiaries have in all material respects
performed all obligations required to be performed by them to date under each
Material Contract; and neither the Company, nor any of its Subsidiaries, nor to
the Knowledge of the Company, any other party to a Material Contract, is in
breach or default under any Material Contract; nor, to the Knowledge of the
Company, does there exist any condition which with the passage of time or the
giving of notice or both would result in such a violation, breach or default
thereunder, in any event which breach or default could have a Company Material
Adverse Effect.  The Company has provided the Purchasers with true and complete
copies of all Material Contacts.

                                  ARTICLE III

                                 CONDITIONS TO CLOSING

  3.01   Conditions to Purchasers' Obligations.  The obligation of the
         -------------------------------------
Purchasers to purchase and pay for the Shares to be purchased by them at the
Closing is subject to the following conditions (all or any of which may be
waived by the Purchasers prior to the Closing):

  (a)  Representations and Warranties.  Each of the representations and
       ------------------------------
warranties of the Company set forth in Article II hereof shall be true, accurate
and correct in all material respects when made and as of the date of the Closing
other than the representations and warranties which are qualified by
"materiality" or "Company Material Adverse Effect," which shall be true,
accurate and correct in all respects; provided, that the Company may deliver
updates of Schedules 2.02, 2.19, 2.22 and 2.23 to the Disclosure Letter at least
two (2) Business Days prior to Closing so long as such updates will not result
in a breach of the other provisions of this Agreement. All agreements and
conditions to be performed or satisfied by the Company or any of its
Subsidiaries hereunder on or before the Closing shall have been duly performed
or satisfied in all material respects.

  (b)  Restated Certificate of Incorporation.  The Company shall have filed the
       -------------------------------------
Restated Certificate of Incorporation with the Delaware Secretary of State.

                                      -15-
<PAGE>

     (c)  Documentation at Closing.  The Purchasers shall have received prior
          ------------------------
to or at the Closing all of the following materials, each in form and substance
reasonably satisfactory to the Purchasers and each of the following events shall
have occurred, or each of the following documents shall have been delivered,
prior to or simultaneous with the Closing:

        (i)   A certified copy of the Restated Certificate of Incorporation of
     the Company, as amended or restated to the date of the Closing; a copy of
     the resolutions of the Board of Directors providing for the approval of
     this Agreement and the Related Agreements, the issuance of the Shares and
     all other agreements or matters contemplated hereby or executed in
     connection herewith; and a copy of the Restated By-laws of the Company, all
     of which have been certified by the Secretary of the Company to be true,
     complete and correct;

        (ii)  A certificate of the Secretary or an Assistant Secretary of the
     Company which shall certify the names of the officers of the Company
     authorized to sign this Agreement, the Related Agreements, the certificates
     for the Shares and the other documents, instruments or certificates to be
     delivered pursuant to this Agreement or the Related Agreements by the
     Company or any of its officers, together with the true signatures of such
     officers;

        (iii) A certificate of the President of the Company stating that the
     representations and warranties of the Company contained in Article II
     hereof are true and correct in all material respects when made and as of
     the time of the Closing, other than the representations and warranties
     which are qualified by "materiality" or "Company Material Adverse Effect,"
     which shall be true, accurate and correct in all respects and that all
     conditions required to be performed by the Company prior to or at the
     Closing have been performed in all material respects;

        (iv)  A Certificate of the Secretary of State of the State of Delaware
     as to the due incorporation and good standing of the Company;

        (v)   A legal opinion from counsel to the Company, in form and substance
     reasonably satisfactory to the Purchasers and covering such customary
     matters as the Purchasers may reasonably request;

        (vi)  The Registration Rights Agreement, in the form attached hereto
     as Exhibit A, duly executed by the Company; and
        ------- -

        (vii) A cross-receipt, in form and substance reasonably satisfactory to
     the Purchasers, pursuant to which the Purchasers acknowledge receipt of the
     Shares and the Company acknowledges receipt of the Purchase Price and
     directs allocation and payment be made thereof in accordance with the
     provisions of the Marketing Agreement.

     (d)  Marketing Agreement.  The Marketing Agreement shall be in full force
          -------------------
and effect, and no event shall have occurred that, but for the passage of time
or giving of notice of both, would allow Itau to terminate the Marketing
Agreement, and the Company shall have made

                                      -16-
<PAGE>

arrangements reasonably satisfactory to the Purchasers regarding the payments
due by the Company under such Marketing Agreement.

  3.02    Conditions to the Company's Obligations.  The obligation of the
          ---------------------------------------
Company to issue and sell to the Purchasers the Shares to be sold at the Closing
is subject to the following conditions:

     (a)  Representations and Warranties.  The representations and warranties of
          ------------------------------
the Purchasers contained in Article I hereof shall be true, accurate and correct
in all material respects when made and as of the date of the Closing other than
the representations and warranties which are qualified by "materiality" or
"material adverse effect," which shall be true, accurate and correct in all
respects. All agreements and conditions to be performed or satisfied by the
Purchasers hereunder on or before the Closing shall have been duly performed or
satisfied in all material respects.

     (b)  Documentation at Closing.  The Company shall have received prior to
          ------------------------
or at the Closing the following materials, each in form and substance reasonably
satisfactory to the Company, and each of the following documents shall have been
delivered, prior to or simultaneous with the Closing:

        (i)   Certified copies of the Estatutos of each Purchaser, as amended or
     restated to the date of the Closing providing authority for the approval of
     this Agreement and the Related Agreements and all other agreements or
     matters contemplated hereby or executed in connection herewith, all of
     which have been certified by two directors or officers of each of the
     Purchasers to be true, complete and correct;

        (ii)  Certificates signed by two directors or officers of each of the
     Purchasers which shall certify the names of the officers of the Purchasers
     authorized to sign this Agreement, the Related Agreements, the certificates
     for the Shares and the other documents, instruments or certificates to be
     delivered pursuant to this Agreement or the Related Agreements by the
     Purchasers or any of its officers, together with the true signatures of
     such officers;

        (iii) Certificates signed by two directors or officers of each of the
     Purchasers stating that the representations and warranties of the
     Purchasers contained in Article I hereof are true and correct in all
     material respects when made and as of the time of the Closing other than
     the representations and warranties which are qualified by "materiality" or
     "material adverse effect," which shall be true, accurate and correct in all
     respects, and that all conditions required to be performed by the
     Purchasers prior to or at the Closing have been performed in all material
     respects;

        (iv)   Official copies from the Registro de Comercio de Sao Paulo of the
     registered Estatutos, as amended, of each of the Purchasers;

        (v)    An opinion of counsel to the Purchasers, in form and substance
     reasonably satisfactory to the Company, as to such customary matters as the
     Company reasonably may request;

                                      -17-
<PAGE>

        (vi)   The Registration Rights Agreement, in the form attached hereto
     as Exhibit A, duly executed by the Purchasers; and
        ------- -

        (vii)  A cross-receipt, in form and substance reasonably satisfactory to
     the Company, pursuant to which the Purchasers acknowledge receipt of the
     Shares and the Company acknowledges receipt of the Purchase Price and
     directs allocation and payment be made thereof in accordance with the
     provisions of the Marketing Agreement.

     (c)  Marketing Agreement.  The Marketing Agreement shall be in full force
          -------------------
and effect, and no event shall have occurred that, but for the passage of time
or giving of notice of both, would allow the Company or AOLB to terminate the
Marketing Agreement.

     (d)  Repo Transactions.  The Repo transactions contemplated to be entered
          -----------------
into by the Purchasers upon consummation of the transactions contemplated hereby
shall not, in the reasonable opinion of the Company, be likely or reasonably
likely to result in the loss of the exemption from registration provided under
Regulation S for the transactions contemplated hereby or the integration of the
transactions contemplated hereby with the sale of Class A Common Stock in the
IPO.

  3.03  Conditions to each Party's Obligations.  The obligation of the Company
        --------------------------------------
to issue and sell to the Purchasers the Shares to be sold at the Closing, and
the obligation of the Purchasers to purchase such shares, is subject to the
following conditions:

     (a)  Effectiveness of Registration Statement.  The Registration Statement
          ---------------------------------------
shall have been declared effective by the SEC, the SEC shall not have issued, or
threatened to issue, any stop order suspending the effectiveness of the
Registration Statement and the shares of Class A Common Stock being issued and
sold in the IPO shall have been issued and sold (without reference to any
overallotment option granted to the underwriters of the IPO) on or prior to
November 12, 2000; except that this condition shall not be applicable if the IPO
shall not have closed prior to October 12, 2000 and the parties shall have
reached agreement, pursuant to Section 5.01 hereof, on modifications to the
transactions contemplated hereby and by the Related Agreements.

     (b)  Approvals. All authorizations, consents, orders or approvals of, or
          ---------
declarations or filings with or expiration of waiting periods imposed by any
governmental authority or any other Person necessary for the consummation of the
transactions contemplated by this Agreement and by the Related Agreements shall
have been obtained or made or shall have occurred.

     (c) Legal Action.  No temporary restraining order, preliminary injunction
         ------------
or permanent injunction or other order preventing the consummation of the
transactions contemplated hereby shall have been issued by any federal or state
court or other governmental authority of competent jurisdiction and remain in
effect.

     (d) Legislation. No federal, state, local or foreign statute, rule or
         -----------
regulation shall have been enacted which prohibits, restricts or delays the
consummation of the transactions

                                      -18-
<PAGE>

contemplated by this Agreement and by the Related Agreements or any of the
conditions to the consummation of such transactions.

     (e)  Antitrust Approvals.  All applicable waiting periods under the HSR Act
          -------------------
shall have expired or been terminated without receipt of any objections or
commencement of litigation or threat thereof by the appropriate governmental
enforcement agency to restrain the transactions contemplated hereby. The filings
required to be made under the BAT Law shall have been timely made.

     (f)  Moratoriums, etc.  There shall not have occurred on or after the date
          -----------------
hereof and be continuing up to the date of the Closing any of the following: (i)
the declaration of a banking moratorium or any suspension of payments in respect
of banks in Brazil or the United States; (ii) the commencement of a war or armed
hostilities or other national or international calamity directly or indirectly
involving Brazil or the United States and (iii) any change in Brazil or United
States currency exchange regulations or a suspension of, or limitation on, the
exchange markets for such currencies, which impairs the Company's ability to
transfer funds to the Purchasers or on the ability of any of the Company's
Subsidiaries to transfer funds to the Company.

     (g)  Reorganization.  The Reorganization shall have been consummated in the
          --------------
manner described in the definition thereof.

                                  ARTICLE IV
                                  DEFINITIONS

  4.01  Certain Defined Terms.  As used in this Agreement, the following terms
        ---------------------
shall have the following meanings (such meanings to be equally applicable to
both the singular and plural forms of the terms defined):

  "Affiliates" shall have the meaning given in the Exchange Act.

  "AOL Warrant" means the warrant to be issued to AOL by the Company in
connection with the consummation of the Reorganization.

  "Business Day" means any day, other than a Saturday or Sunday, on which
federally chartered banks in the United States and Brazil are open for business.

  "Common Stock Equivalents" means debt or equity securities convertible into or
exchangeable for Class A Common Stock, and options, warrants or other rights to
acquire any Class A Common Stock or any debt or equity securities convertible
into or exchangeable for Class A Common Stock .

  "Equity Securities" means (i) equity securities of the Company other than
Class A Common Stock and Common Stock Equivalents, (ii) any debt convertible
into or exchangeable for any equity securities of the Company other than Class A
Common Stock or Common Stock

                                      -19-
<PAGE>

Equivalents and (iii) any options, warrants or other rights to acquire any
equity securities of the Company other than Class A Common Stock or Common Stock
Equivalents.

  "Exchange Act" means the Securities Exchange Act of 1934, as amended, or any
similar federal statute, and the rules and regulations of the SEC (or of any
other Federal agency then administering the Exchange Act) thereunder, all as the
same shall be in effect at the time.

  "Intellectual Property Rights" means any and all trademarks, service marks,
trade names, Internet domain names, designs, logos, slogans, and general
intangibles of like nature, together with all goodwill, registrations and
applications related to the foregoing (collectively, "Trademarks"); patents
                                                      ----------
(including any registrations, continuations, continuations in part, renewals and
applications for any of the foregoing); copyrights (including any registrations
and applications for any of the foregoing); Software; databases; technology,
trade secrets and other confidential information, know-how, proprietary
processes, formulae, algorithms, models, and methodologies (collectively, "Trade
                                                                           -----
Secrets"); which are owned by or licensed to the Company or any of its
-------
Subsidiaries.  For the purposes of this Section, "Software" means any and all
                                                  --------
(a) computer programs, including any and all software implementation of
algorithms, models and methodologies, whether in source code or object code, (b)
databases and compilations, including any and all data and collections of data,
and (c) all documentation, including user manuals and training materials,
relating to any of the foregoing.

  "Knowledge" of the Company means the actual knowledge of the senior executive
officers of the Company and its Subsidiaries.

  "Lien" means: (i) any interest in property (whether real, personal or mixed
and whether tangible or intangible), or other restriction including, without
limitation, any lien or security interest, which secures an obligation owed to,
or a claim by, a Person other than the owner of such property, whether such
interest is based on the common law, statute or contract, including, without
limitation, any such interest arising from a lease, mortgage, charge, pledge,
security agreement, conditional sale, trust receipt or deposit in trust, or
arising from a consignment of bailment given for security purposes, (ii) any
encumbrance upon such property which does not secure such an obligation, or
(iii) any exception to or defect in the title to or ownership interest in such
property.

  "Person" means an individual, corporation, partnership, limited liability
company, joint venture, trust, university, or unincorporated organization, or a
government or any agency or political subdivision thereof.

  "Reorganization" means the consummation of the transactions contemplated by
(i) the Contribution Agreement and (ii) the Letter Agreement in a manner in
which the documents referenced in the Letter Agreement are not modified or
amended except in the manner set forth in the Letter Agreement.  In connection
with the Reorganization, AOL Latin America, S.L., a limited liability company
organized under the laws of the Kingdom of Spain, shall become a wholly owned
subsidiary of the Company.

                                      -20-
<PAGE>

  "Securities Act" means the Securities Act of 1933, as amended, or any similar
Federal statute, and the rules and regulations of the SEC (or of any other
Federal agency then administering the Securities Act) thereunder, all as the
same shall be in effect at the time.

  "Subsidiary" of any party means any corporation, partnership, limited
liability company or other organization, whether incorporated or unincorporated,
of which (a), in the case of a corporation, securities or other interests having
by their terms ordinary voting power to elect at least one-half of the board of
directors or others performing similar functions with respect to such
corporation are directly or indirectly owned or controlled by such party, by any
one or more of its Subsidiaries, or by such party and one or more of its
Subsidiaries or otherwise has "control" (within the meaning of Rule 12b-2 under
the Exchange Act) over such organization or entity or (b) in the case of any
organization or entity other than a corporation, such party, one or more of its
Subsidiaries, or such party and one or more of its Subsidiaries (x) owns at
least one-half of the equity interests thereof or (y) has the power to elect or
direct the election of at least one-half of the members of the board or
directors or other governing body thereof or otherwise has "control" (within the
meaning of Rule 12b-2 under the Exchange Act) over such organization or entity.
The Parties acknowledge that for purposes of this Agreement, AOL Latin America,
S.L., a joint venture organized under the laws of the Kingdom of Spain, and each
of its Subsidiaries, shall be deemed a Subsidiary of the Company,
notwithstanding that the Company may not control such entity as of the date
hereof.

                                   ARTICLE V

                           COVENANTS; INDEMNIFICATION

  5.01  Mutual Covenants.
        ----------------

  (a)  From and after the date of this Agreement, upon the request of the
Purchasers or the Company, the parties hereto shall execute and deliver such
instruments, documents and other writings and take all such further actions as
may be reasonably necessary or desirable to confirm and carry out and to
effectuate fully the intent and purposes of this Agreement and the issuance and
sale of the Shares pursuant hereto, including, without limitation, making timely
all such filings as may be required pursuant to the HSR Act and the BAT Law and
seeking all such consents and approvals as may be required to be obtained by
such party to consummate the transactions contemplated by this Agreement and the
Related Agreements, including the consummation of the Reorganization.

  (b)   If the IPO has not been consummated, and the shares contemplated to be
issued and sold therein, are not so issued and sold on or prior to October 12,
2000, the parties shall negotiate in good faith for a period not to exceed
thirty (30) days regarding modifications to the transactions contemplated
hereby, by the Marketing Agreement and by the Related Agreements, necessary or
desirable in order to effectuate the transactions contemplated hereby and obtain
for the parties the benefits sought to be obtained hereby and thereby without
consummation of the IPO; provided, that if the IPO is consummated during such
                         --------
30 day period, the provisions of this subsection shall be without force and
effect.

                                      -21-
<PAGE>

  (c)   Except as expressly provided in the Marketing Agreement, neither the
Company nor the Purchasers shall, nor shall either the Company or the Purchasers
permit any of its Subsidiaries to (and each such party shall use its reasonable
efforts to cause its affiliates, directors, officers, employees and authorized
representatives not to), issue any press release, make any public announcement
or furnish any written statement to its employees or stockholders generally
concerning the transactions contemplated by this Agreement without the consent
of the other party (which consent shall not be unreasonably withheld), except to
the extent required by applicable law or (i) with respect to the Company, the
applicable requirements of the National Association of Securities Dealers, Inc.,
at such time as the Company's securities are listed for trading on the NASDAQ,
or (ii) with respect to the Purchasers, the applicable requirements of the Bolsa
de Valores de Sao Paulo (and in either such case such party shall, to the extent
consistent with timely compliance with such requirement, consult with the other
party prior to making the required release, announcement or statement )

  5.02  Indemnification.
        ---------------

  (a)  Company Indemnification.   The Company covenants and agrees to indemnify,
       -----------------------
defend, protect and hold harmless the Purchasers and their respective officers,
directors, employees, stockholders, assigns, successors and affiliates
(individually, a "Purchaser Party" and collectively, the "Purchaser Parties")
from, against and in respect of all liabilities, losses, claims, damages,
punitive damages, causes of actions, lawsuits, administrative proceedings
(including informal proceedings), investigations, audits, demands, assessments,
adjustments, judgments, settlement payments, deficiencies, penalties, fines,
excise taxes, interest (including interest from the date of such damages) and
costs and expenses (including, without limitation, reasonable attorneys' fees
and disbursements of every kind, nature and description) (collectively,
"Damages") suffered, sustained, incurred or paid by the Purchaser Parties, in
any action or proceeding between the Company and the Purchaser Parties or
between the Purchaser Parties and a third party, in connection with, resulting
from or arising out of, directly or indirectly: (1) the inaccuracy of any
representation or the breach of any warranty set forth in this Agreement or in
the Registration Rights Agreement or (2) the nonfulfillment of any covenant or
agreement on the part of the Company set forth in this Agreement or in the
Registration Rights Agreement.

  (b)  Purchaser Indemnification.  The Purchasers jointly and severally covenant
       -------------------------
and agree to indemnify, defend, protect and hold harmless the Company and its
officers, directors, employees, stockholders, assigns, successors and affiliates
(individually, a "Company Party" and collectively, the "Company Parties") from,
against and in respect of Damages suffered, sustained, incurred or paid by the
Company Parties, in any action or proceeding between the Company and the Company
Parties or between the Company Parties and a third party, in connection with,
resulting from or arising out of, directly or indirectly: (1) the inaccuracy of
any representation or the breach of any warranty set forth in this Agreement or
in the Registration Rights Agreement or (2) the nonfulfillment of any covenant
or agreement on the part of the Purchasers set forth in this Agreement or in the
Registration Rights Agreement.

  (c)   Limitation on Recoveries.  No claim shall be made by a party under
        ------------------------
clause (1) of Sections 5.02(a) or 5.02(b) unless the aggregate amount of the
Damages sought in all such claims exceeds $1,000,000, but each claim paid
pursuant to any such indemnification shall be the full amount of Damages
established in accordance with applicable law in respect of such claim

                                      -22-
<PAGE>

without regard to such limitation; provided however, that in no event shall a
                                   -------- -------
party's liability for Damages payable hereunder, whether by means of an
indemnification pursuant to this Article V, any arbitration proceeding or action
at law for breach of any representation, warranty or covenant, or otherwise, or
under any doctrine of restitution, accounting or other equitable theory or
remedy, exceed, in the aggregate and in respect of any and all claims for
Damages hereunder, the Purchase Price. The foregoing limitations shall not apply
to the representations under Sections 1.02 (e), the first two sentences of
Section 2.01, or Sections 2.03, 2.06 and 2.14.

     5.03   Issuances of Additional Securities to AOL and ODC.
            -------------------------------------------------

     (a)  The Company shall not, prior to consummation of the IPO, issue or
sell, or agree or obligate itself to issue or sell, any Class A Common Stock,
Common Stock Equivalents or other Equity Securities to any Person, including,
without limitation, AOL, ODC and/or any of their Affiliates, solely for cash or
cash equivalents without first offering the Purchasers the opportunity to
purchase for cash their Pro Rata Amount (as defined below) of the securities to
be so issued in accordance with the provisions of this Section 5.03.

     (b) The Company shall not, prior to consummation of the IPO, issue or sell,
or agree or obligate itself to issue or sell, any Class A Common Stock, Common
Stock Equivalents or other Equity Securities to AOL, ODC and/or any of their
Affiliates in exchange for any property or assets (including, without
limitation, for any Intellectual Property Rights) other than cash and/or cash
equivalents, in any event that represent, when aggregated with all other such
issuances consummated after the date hereof, greater than fifteen percent (15%)
of the then outstanding Class A Common Stock, calculated on an as converted,
fully diluted basis without first offering the Purchasers the opportunity to
purchase for cash their Pro Rata Amount (as defined  below) of the securities to
be so issued in accordance with the provisions of this Section 5.03.

     (c)   The Company shall not, prior to consummation of the IPO, issue or
sell, or agree or obligate itself to issue or sell, any shares of Class A Common
Stock, Common Stock Equivalents or other Equity Securities to AOL, ODC and/or
any of their Affiliates in exchange for any property or assets (including,
without limitation, for any Intellectual Property Rights) other than cash and/or
cash equivalents, in any event that represent, when aggregated with all other
such issuances consummated after the date hereof, less than fifteen percent
(15%) of the then outstanding Class A Common Stock, calculated on an as
converted, fully diluted basis, without first providing the Purchasers with not
less than ten (10) Business Days prior written notice that the Company intends
to effect such issuance and sale and, if such securities are being issued for
less than fair value, without first offering the Purchasers the opportunity to
purchase for cash their Pro Rata Amount of the securities to be so issued in
accordance with the provisions of this Section 5.03. Any dispute with respect to
the fair value of any Class A Common Stock, Common Stock Equivalents or other
Equity Securities to be issued to AOL, ODC and/or any of their Affiliates or any
property or assets to be received in exchange therefor shall be resolved in
accordance with the provisions of subsection 5.03(h) hereof.

     (d)   Offer to Sell.   The Company shall provide the Purchasers with not
           -------------
less than ten (10) Business Day's prior written notice of any proposed issuance
and sale of Class A Common Stock, Common Stock Equivalents or other Equity
Securities to AOL, ODC and/or any of their

                                      -23-
<PAGE>

Affiliates in exchange for any property or assets (including, without
limitation, for any Intellectual Property Rights) other than cash and/or cash
equivalents, which notice shall describe the terms and conditions of such
transfer in reasonable detail and shall specify the fair value of the property
or assets to be received by the Company and the fair value of the shares of
Class A Common Stock, Common Stock Equivalents or other Equity Securities to be
issued in exchange therefor, each as determined by the board of directors of the
Company. In addition, if the Company determines to issue or sell any Class A
Common Stock, Common Stock Equivalents or other Equity Securities (the "Offered
Securities") which the provisions of this Section 5.03 require be offered to the
Purchasers, the Company shall offer to issue and sell to each Purchaser that
portion of such securities as the number of shares then held or deemed to be
held by such Purchaser bears to the total number of shares of Common Stock of
the Company then outstanding or deemed to be outstanding, calculated on an as
converted, fully diluted basis (each Purchaser's "Pro Rata Amount") at a cash
price and on such other terms as shall have been specified by the Company in
writing delivered to such Purchaser (the "Offer"), which Offer by its terms
shall remain open and irrevocable for a period of ten (10) Business Days from
receipt of the offer; provided, that for purposes of determining the Purchasers'
Pro Rata Amount with respect to any such issuance and sale (i) the number of
shares held by the Purchasers as of any date shall be deemed to equal 12.0% of
the number of the aggregate number of shares deemed outstanding on the date
hereof (which shall be deemed to include only the shares deemed to be held by
AOL and ODC as of the date hereof) plus such number of shares as the Purchasers
shall have acquired after the date hereof pursuant to the provisions of this
Section, and (ii) the total number of shares outstanding as of such date shall
include (A) the 12% deemed held by Purchasers as of the date hereof, (B) the 88%
balance of the shares deemed to be held by AOL and ODC as of the date hereof,
(C) the shares issuable pursuant to the AOL Warrant, (D) 5% of the authorized
capital stock of the Company deemed reserved for issuance pursuant to the
Company's 2000 Stock Option Plan, and (E) all shares of Class A Common Stock or
any Common Stock Equivalents or other Equity Securities issued by the Company
after the date hereof. Shares of Class A Common Stock and Common Stock
Equivalents shall, for purposes of this Section 5.03(d), be deemed to be held or
outstanding if they are to be issued (i) in the IPO (with the number of shares
to be issued in the IPO deemed to equal 10% of the total number of shares of
Class A Common Stock and Common Stock Equivalents of the Company then
outstanding without giving effect to the issuance of the Shares to the
Purchasers), (ii) to AOL, ODC and their Affiliates in connection with the
consummation of the Reorganization, or (iii) to the Purchasers hereunder, in
addition to all shares at the time held or outstanding.

     (e) Notice of Acceptance.  Notice of each Purchaser's intention to accept
         ---------------------
any Offer made pursuant to this Section 5.03 may be made in whole or in part as
to such Purchaser's Pro Rata Amount and shall be evidenced by a writing signed
by such Purchaser and delivered to the Company prior to the end of the 10
Business Day period of such Offer (the "Notice of Acceptance").

                                      -24-
<PAGE>

     (f) Conditions to Acceptances and Purchase  .
         --------------------------------------

         (i)  Permitted Sales of Offered Securities.  The Company shall have
              -------------------------------------
ninety (90) days from the expiration of the period set forth in Section 5.03(d)
to close the sale of all, but not less than all, of the Offered Securities as to
which a Notice of Acceptance has not been given by the Purchasers, but only at
the per share price and/or interest rate, as applicable, and upon other terms
and conditions, including, without limitation, which are no less favorable, in
the aggregate, to the Company than those set forth in the Offer. If the Company
seeks to sell less than all of the Offered Securities, it shall again provide
the Purchasers with notice pursuant to the provisions of Section 5.03(d),
regardless of whether Notices of Acceptance previously have been delivered, and
the Purchasers shall have an additional ten (10) Business Day period in which to
submit a Notice of Acceptance, if one has not been previously submitted, or
withdraw a previously submitted Notice of Acceptance in any event with respect
to such reduced amount of the Offered Securities.

         (ii)  Closing.  Upon the closing, which shall include full payment to
               -------
the Company, of the sale to AOL, ODC and/or their Affiliates or the other
Persons to whom Offered Securities are to be sold pursuant to the provisions of
this Section 5.03, the Purchasers shall purchase from the Company, and the
Company shall sell to the Purchasers, the Offered Securities specified in the
Notices of Acceptance upon the terms and conditions specified in the Offer. The
purchase by the Purchasers of any Offered Securities is subject in all cases to
the preparation, execution and delivery by the Company and the Purchasers of a
purchase agreement relating to such Offered Securities reasonably satisfactory
in form and substance to the Purchasers and containing terms and conditions no
less favorable, in the aggregate, than those contained in the similar purchase
agreements entered into with the other purchasers of Offered Securities.

     (g)  Termination of Right of Participation.  The rights of the Purchasers
          -------------------------------------
under this Section 5.03 shall terminate immediately upon the first to occur of
(i) the date on which this Agreement is terminated in accordance with its terms
and (ii) the date of the consummation of the IPO.

     (h)  Disputes as to Fair Value.
          -------------------------

          (i)   If  the Purchasers deliver a Notice of Acceptance with respect
to any Offered Securities as to which they believe that there is a difference
between the value of the property or assets to be received by the Company or the
value of any securities to be issued by the Company pursuant to the provisions
hereof, each as determined by the board of directors of the Company and set
forth in any Offer,  and the actual fair value thereof, they shall so notify the
Company within ten (10) Business Days of their receipt of any Offer.  Any notice
delivered by the Purchasers pursuant to the provisions of this Section
5.03(h)(i) shall set forth the Purchasers' determination of the fair value of
the securities or assets at issue, as applicable.  If the Company agrees with
the Purchasers' proposed valuation, it shall so notify the Purchasers in writing
within five (5) Business Days of its receipt of such proposed  valuation and the
per share purchase price to be paid by the Purchasers in connection with such
issuance and sale shall be adjusted appropriately.  If, however, the Company
disputes the Purchasers' valuation, the Company shall

                                      -25-
<PAGE>

refer the matter to arbitration in accordance with the provisions set forth
below. Notwithstanding any such dispute, the Purchasers shall, if the closing
occurs prior to resolution of such dispute, be required to purchase the full
amount of shares as to which a Notice of Acceptance has been delivered at the
price and on the other terms and conditions set forth in the Offer. If the
Purchasers fail to so consummate the acquisition of the Offered Securities, the
arbitration promptly shall cease and the Purchasers shall be liable for all of
the costs thereof.

          (ii)  If the Purchasers believe that there is a difference between the
value of the property or assets to be received by the Company or the value of
any securities to be issued by the Company, each as determined by the board of
directors of the Company and set forth in any notice delivered pursuant to
Section 5.03(c), they shall so notify the Company within ten (10) Business Days
of their receipt of such notice.  If the Company agrees with the Purchasers'
proposed valuation, it shall so notify the Purchasers in writing within five (5)
Business Days of its receipt of such proposed valuation and, if such modified
valuation would result in an issuance of securities by the Company for less than
fair value, such notice of agreement shall constitute an Offer at the per share
price reflected in such revised valuation and the Purchasers shall have ten (10)
Business Days from receipt of such Offer to deliver Notices of Acceptance in
accordance with the provisions hereof.  If, however, the Company disputes the
Purchasers' valuation, the Company shall refer the matter to arbitration in
accordance with the provisions set forth below.

          (iii)    Any dispute as to the fair value of any assets or securities
referred to arbitration by the Company shall be resolved by arbitration in
accordance with the provisions of Section 7.08 hereof; provided that, in any
such arbitration the following shall apply:

                   (A)  the arbitrators shall only be empowered to determine
whether the shares at issue were issued for fair value (with such determination
to be made as if the matter were one to be decided under the provisions Section
144(a)(iii) of the General Corporation Law of the State of Delaware);

                   (B)  if the securities at issue were proposed to be sold
pursuant to the provisions of subsection 5.03(b) and (1) the arbitrators
determine the shares issued or to be issued to AOL or ODC or any of their
Affiliates were issued or will be issued for fair value, then, the sale of such
securities to the Purchasers shall, if not already consummated, be at the price
and on the terms set forth in the Offer, or (2) the arbitrators determine the
shares issued or to be issued to AOL or ODC or any of their Affiliates were
issued or will be issued for less than fair value, then, the sale of such
securities to the Purchasers shall, if not already consummated, be at the price
and on the terms set forth in the Offer, and if already consummated, the
Purchasers shall be refunded such amount of cash as shall be required so as to
bring the average of the price paid by them in connection with such sale to the
fair value per share as determined by the arbitrators; and

                   (C)  if the securities at issue were proposed to be sold
pursuant to the provisions of subsection 5.03(c), then, (1) if the arbitrators
determine the shares issued or to be issued to AOL or ODC or any of their
Affiliates were issued or will be issued for fair value, then no further action
shall be required, but (2) if the arbitrators determine the shares issued or to
be issued to AOL or ODC or any of their Affiliates were issued or will be issued
for less than fair value, then, the Company shall be deemed to have made the
Purchasers an Offer to purchase

                                      -26-
<PAGE>

their Pro Rata Amount of the securities so issued or to be issued at the at the
per share price determined by the arbitrators to be the value at which the
securities were issued or are to be issued.

     5.04     Non-Competition.
              ---------------

     (a)  Each of AOL and ODC agrees that, until the first to occur of (i) the
termination of this Agreement in accordance with its terms and (ii) the date of
consummation of the IPO, the Purchasers shall be entitled to enforce the
noncompetition obligations of AOL and ODC (the "Existing Stockholders")
contained in Sections 4.1 and 4.2 of the Stockholders' Agreement, to be dated
the effective date of the Reorganization, by and between the Company, AOL and
ODC (the "Existing Stockholders' Agreement"), on the terms and conditions set
forth therein as if such agreement was in full force and effect and as if the
Purchasers were parties thereto; provided, that the provisions of the Existing
                                 --------
Stockholders' Agreement that are effective only so long as each of AOL and ODC
owns 20% of the issued and outstanding Voting Stock, as such percentage is
adjusted pursuant to the Existing Stockholders' Agreement,  shall be enforceable
against AOL or ODC, as the case may be, so long as such party owns 20% of the
limited liability company interests in America Online Latin America S.L., a
limited liability company organized under the laws of the Kingdom of Spain.

     (b) Each Purchaser covenants and agrees to be bound by and comply with the
provisions of Sections 4.1 and 4.2 of the Existing Stockholders' Agreement that
are applicable to ODC thereunder as if such Purchaser were a party thereto,
except that (i) the provisions of such covenant and agreement shall be
enforceable without reference to any minimum percentage ownership of capital
stock of the Company on the part of the Purchasers, (ii) such covenant and
agreement shall not be enforceable by any Existing Stockholder against whom the
Existing Stockholders' Agreement is not enforceable by the Purchasers, and (iii)
all references to "Cisneros Family Members," "RSL-LA" and "GLA" shall not apply
with respect to the Purchasers.

     (c) Notwithstanding anything to the contrary contained herein, the parties
hereto agree that the provisions of Section 4.2(a) of the Existing Stockholders'
Agreement, as they apply to the Purchasers, shall be applied so that (i) the
repurchase obligations contained therein that are triggered upon a breach by AOL
or ODC shall apply, with respect to the Shares held by the Purchasers and their
Permitted Stockholder Affiliates, to whichever of AOL or ODC as shall have
breached the provisions of Section 4.1 of the Existing Stockholders' Agreement
and (ii) AOL shall have the right to repurchase the Shares held by the
Purchasers and any Permitted Stockholder Affiliates upon any breach by either or
both of the Purchasers, or any Permitted Stockholder Affiliate then holding any
Shares, of the provisions of said Section 4.1.

     (d) For the avoidance of doubt, with respect to PC Access Services, TV
Access Services and Wireless Access Services (as such terms are defined in the
Existing Stockholders' Agreement), neither Purchaser shall be deemed to be
engaging in a Restricted Activity (as such term is defined in the Existing
Stockholders' Agreement), unless (i) a Purchaser is a Significant Competitor (as
such term is defined in the Existing Stockholders' Agreement), or the Purchasers
are an Aggregated Significant Competitor (as such term is defined in the
Existing Stockholders'

                                      -27-
<PAGE>

Agreement) or (ii)(A) a Purchaser has, or the Purchasers collectively have, a
direct and/or indirect ownership interest in any applicable Person or Persons of
at least thirty five percent (35%) and (B) such Person is a Significant
Competitor or a Purchaser together with the other Purchaser and/or such other
Person or Persons are an Aggregated Significant Competitor.

                                   ARTICLE VI
                             TERMINATION; SURVIVAL

     6.01  Termination by Mutual Consent.  This Agreement may be terminated and
           -----------------------------
the transactions contemplated hereby may be abandoned at any time by the mutual
written consent of the Company and the Purchasers.

     6.02  Termination by Expiry of Time.  Either party may terminate this
           -----------------------------
Agreement if the Closing has not occurred on or prior to December 12, 2000,
except that a party may not avail itself of this provision if such failure is a
result of breach by such party of any of its representations, warranties or
covenants contained herein.  In addition, either party may terminate this
Agreement if the IPO has not occurred by October 12, 2000, and the parties have
not agreed on amendments to this Agreement and the Related Agreements necessary
or deliverable to effect the transactions contemplated hereby and thereby on or
prior to November 12, 2000; provided, that if the IPO is consummated during such
                            --------
30 day period, the provisions of this sentence shall be without force and
effect.

     6.03  Termination by Reason of Additional Stock Issuances.   This Agreement
           ---------------------------------------------------
may be terminated by the Purchasers and the transactions contemplated hereby may
be abandoned if, at any time prior to the IPO, the Company shall issue and sell
any shares of Class A Common Stock, Common Stock Equivalents or other Equity
Securities that represent, in the aggregate, more than fifteen percent (15%) of
the then outstanding Class A Common Stock, calculated on an as converted, fully
diluted basis and assuming the issuance and sale to the Purchasers of the Shares
and the issuance and sale of the Series B Preferred  to AOL and the Series C
Preferred to ODC, in any event in connection with any acquisition, strategic
alliance or other similar transaction effected with any party other than AOL,
ODC or any of their Affiliates; provided, that the fifteen percent limitation
                                --------
shall not be applicable to any issuance of securities in connection with any
acquisition, strategic alliance or other similar transaction that is, or is to
be, effected at a fixed dollar amount, with the securities to be issued upon or
after consummation of the IPO with the actual number of shares of Class A Common
Stock, Common Stock Equivalents or other Equity Securities determined by
dividing such fixed dollar amount by the price of the Class A Common Stock on
the date of the consummation IPO or some date (or period, with respect to any
average trading price) thereafter.  To be effective, a notice of termination
under this Section must be delivered to the Company on or prior to the date that
is fifteen (15) days after the Purchasers shall have received written notice of
the pending consummation of any such transaction.

     6.04    Effect of Termination and Abandonment.  Upon termination of this
             -------------------------------------
Agreement and abandonment of the transactions contemplated hereby pursuant to
this Article VI, no party hereto (or any of its directors, managers or officers)
shall have any liability or further

                                      -28-
<PAGE>

obligation to any other party to this Agreement other than for breach of this
Agreement, any Related Agreement or the Marketing Agreement and the other
documents and agreements executed in connection with the transactions
contemplated thereby.

  6.05  Survival of Representations and Warranties.  All representations and
        ------------------------------------------
warranties made in this Agreement or any other instrument or document delivered
in connection herewith (other than the Related Agreement, which representations
and warranties, if any, shall survive for the periods specified therein) shall
survive for a period of eighteen months from and after the Closing other than
the representations set forth in Section 1.02(d), the first two sentences of
Section 2.01, and Sections 2.03, 2.06 and 2.14, each of which shall survive for
a period of 6 years from the date of the Closing.

                                 ARTICLE VII
                                 MISCELLANEOUS

  7.01  No Waiver; Cumulative Remedies.  No failure or delay on the part of any
        ------------------------------
party to this Agreement in exercising any right, power or remedy hereunder shall
operate as a waiver thereof; nor shall any single or partial exercise of any
such right, power or remedy preclude any other or further exercise thereof or
the exercise of any other right, power or remedy hereunder.  The remedies herein
provided are cumulative and not exclusive of any remedies provided by law.

  7.02  Amendments, Waivers and Consents.  Any provision in the Agreement to the
        --------------------------------
contrary notwithstanding, changes in, termination or amendments of or additions
to this Agreement may be made by mutual agreement of the parties hereto.  Any
waiver or consent may be given subject to satisfaction of conditions stated
therein and any waiver or consent shall be effective only in the specific
instance and for the specific purpose for which given.

     7.03       Addresses for Notices.  All notices, requests, consents and
                ---------------------
other communications hereunder shall be in writing, shall be addressed to the
receiving party's address set forth below or to such other address as a party
may designate by notice hereunder, and shall be either (i) delivered by hand,
(ii) made by telecopy or facsimile transmission, (iii) sent by overnight
courier, or (iv) sent by registered or certified mail, return receipt requested,
postage prepaid.

     If to the Purchasers:

        c/o Banco Itau, S.A.
        Rua Boa Vista 176
        Sao Paulo, Brazil
        Attn: President and Chief Executive Officer
        Fax: (011) 55-11-237-3030

                                      -29-
<PAGE>

With a copy (which shall not constitute notice) to:

        Skadden, Arps, Slate, Meagher & Flom LLP
        Four Times Square, New York, NY  10036-6522
        Attention: Paul T. Schnell, Esq.
        Fax No: (212) 735-2000

     If to the Company:

        America Online Latin America, Inc.
        6600 N. Andrews Avenue
        Suite 500
        Ft. Lauderdale, FL  33309
        Attn:   Chief Executive Officer
        Fax:    (954) 772-7089

     With copies (which shall not constitute notice) to:

        America Online Latin America, Inc.
        6600 N. Andrews Avenue
        Suite 500
        Ft. Lauderdale, FL  33309
        Attn:   General Counsel
        Fax:    (954) 772-7089

        Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
        One Financial Center, Boston, Massachusetts  02111
        Attn: Peter S. Lawrence, Esq.
        Fax No: (617) 542-2241

All notices, requests, consents and other communications hereunder shall be
deemed to have been given (i) if by hand, at the time of the delivery thereof to
the receiving party at the address of such party set forth above, (ii) if made
by telecopy or facsimile transmission, at the time that receipt thereof has been
acknowledged by electronic confirmation or otherwise, (iii) if sent by overnight
courier, on the next Business Day (or if sent overseas, on the second Business
Day) following the day such notice is delivered to the courier service, or (iv)
if sent by registered or certified mail, on the date delivery is made at the
address of such party set forth above.

  7.04  Costs, Expenses and Taxes.  Except as otherwise provided herein, each of
        -------------------------
the parties hereto shall pay its own fees and expenses (including the fees of
any attorneys, accountants, appraisers or others engaged by such party) in
connection with this Agreement and the transactions contemplated hereby whether
or not the transactions contemplated hereby are consummated.  Notwithstanding
the foregoing, the Company shall pay any and all stamp, or other similar taxes
payable or determined to be payable in connection with the execution and
delivery of this Agreement, the issuance of the Shares and the other instruments
and documents to be delivered hereunder or thereunder, and agrees to save the
Purchasers harmless from and

                                      -30-
<PAGE>

against any and all liabilities with respect to or resulting from any delay in
paying or omission to pay such taxes.

     7.05    Binding Effect; Assignment.  This Agreement shall be binding upon
             --------------------------
and inure to the benefit of the Company and the Purchasers and their respective
heirs, successors and assigns, and may not be assigned by the Company or by the
Purchasers; provided that either Purchaser may assign this Agreement (i) to any
            --------
wholly-owned Subsidiary of Itau that is not a "U.S. person" as such term is
defined in Rule 902(k) promulgated under Regulation S, and (ii) with the prior
consent of the Company, which consent will not be unreasonably withheld or
delayed, to any non- "U.S. person," not less than seventy-five percent (75%) of
the outstanding equity securities and Voting Power of which are owned, directly
or indirectly, by Itau or Itausa, but no such assignment shall relieve such
Purchaser from any of its obligations hereunder.

  7.06  Prior Agreements.  This Agreement, the Related Agreements and the other
        ----------------
instruments executed and delivered herewith constitute the entire agreement
between the parties and supersede any prior understandings or agreements
concerning the subject matter hereof except for the separate Confidentiality and
Non-Disclosure Agreements, each effective as of February 1, 2000, between Itau
and each of the Company, AOL and ODC, each of which shall remain in force and
effect in accordance with its terms.

  7.07  Severability.  The provisions of this Agreement are severable and, in
        ------------
the event that any court of competent jurisdiction shall determine that any one
or more of the provisions or part of a provision contained in this Agreement
shall, for any reason, be held to be invalid, illegal or unenforceable in any
respect, such invalidity, illegality or unenforceability shall not affect any
other provision or part of a provision of this Agreement; but this Agreement
shall be reformed and construed as if such invalid or illegal or unenforceable
provision, or part of a provision, had never been contained herein, and such
provisions or part reformed so that it would be valid, legal and enforceable to
the maximum extent possible.

  7.08  Arbitration of Disputes. Resolution of Disputes.
        -----------------------------------------------

  (a)  Any dispute, controversy or claim arising out of or relating to this
Agreement, or the breach, termination or validity thereof ("Dispute"), shall be
decided by arbitration administered by the American Arbitration Association
("AAA") in accordance with the International Arbitration Rules of the AAA
("Rules"). For the purpose of any arbitration held pursuant to this Section
7.08, the Company shall act as one party and the Holders shall act as one party
for the purpose of the appointment of arbitrators and for general conduct of the
arbitration. The arbitration shall be conducted and the award shall be rendered
in New York, New York in the English language. Any judicial proceeding by a
party seeking to set aside, vacate or modify an arbitral award issued hereunder
shall be filed in the United States District Court for the Southern District of
New York or the New York State Courts located in New York, New York and shall be
subject to the Federal Arbitration Act, 9 U.S.C. sec. 1 et seq. The parties
hereto consent to the exclusive jurisdiction of the aforesaid courts for any
action to vacate or set aside an arbitration award hereunder. Each arbitration
shall be commenced by, and on the date of, the serving of a statement of claim
by the claimant on the respondent. The claimant shall simultaneously file such
statement of claim with the AAA. The arbitral award shall be final and

                                      -31-
<PAGE>

binding and the prevailing party may enter such award in any court having
jurisdiction. The panel shall order all expenses and costs of an arbitration,
including reasonable counsel and consultant fees, to be paid by the non-
prevailing party. In a proceeding in which both parties prevail on different
issues in dispute, the panel shall provide in its award for an apportionment of
such expenses and costs reasonably reflecting the relative significance of the
issues decided. Any disputes as to the reasonableness of counsel fees or other
expenses or costs of the prevailing party shall be decided by the same panel.
The arbitral award shall incorporate the amount of costs and fees to be paid by
the non-prevailing party. By agreeing to arbitration, the parties do not intend
to deprive any court of its jurisdiction to issue a pre-arbitral injunction,
pre-arbitral attachment, or other order in aid of arbitration proceedings and
the enforcement of any award. Without prejudice to such provisional remedies as
may be available under the jurisdiction of a court, the arbitral tribunal shall
have full authority to grant provisional remedies or to order any party or
parties to request that a court modify or vacate any temporary or preliminary
relief issued by that court, and to award damages for the failure of any party
to respect the arbitral tribunal's orders to that effect. The parties shall use
commercially reasonable efforts to facilitate the expeditious resolution of any
Disputes.

     (b)   In connection with any Arbitration hereunder except for proceedings
under Section 7.08(c), the following specific schedule and content of
proceedings shall be adhered to by the parties unless otherwise mutually agreed.
There shall be three (3) neutral arbitrators, of whom each party shall appoint
one within thirty (30) days of the receipt by the respondent of the statement of
claim. If any arbitrator is not appointed within the time limit provided herein,
such arbitrator shall be appointed by the American Arbitration Association. The
two arbitrators so appointed shall select the chair of the arbitral tribunal
within thirty (30) days of the appointment of the second arbitrator.  If the
third arbitrator is not appointed within the time limit provided herein, such
arbitrator shall be appointed by the American Arbitration Association by
providing the parties a list of ten (10) qualified arbitrators and their
relevant biographical data. Within ten (10) days after receipt of such list,
each party shall return said list to the AAA in which it shall strike three (3)
of the arbitrators and rank the remaining arbitrators 1 through 7, 1 being the
party's first choice. Unless the parties agree to request an additional list
from the AAA, and thus to repeat the process with the same timing, the AAA shall
select the arbitrator as promptly as possible having the highest combined
preference based upon the rankings of the parties. Upon written notice by the
AAA to the parties of the third arbitrator selected, the panel shall be seated.
The arbitrator who shall serve as  chair of the tribunal shall not be a national
of the United States or Brazil.

     (c) In order to facilitate the comprehensive resolution of related
disputes, all claims between any of the parties to this Agreement that arise
under or in connection with this Agreement and/or any of the Related Agreements
(other than the Escrow Agreement) may be brought in a single arbitration. Upon
the request of any party to an arbitration proceeding constituted under this
Agreement, the arbitral tribunal shall consolidate the arbitration proceeding
with any other arbitration proceeding involving any of the parties hereto
relating to any of the Related Agreements (other than the Escrow Agreement) if
the arbitrators determine that (i) there are issues of fact or law common to the
proceedings so that a consolidated proceeding would be more efficient than
separate proceedings, and (ii) no party would be unduly prejudiced as a result
of such consolidation through undue delay or otherwise. In the case of all
arbitration proceedings hereunder, the award of the arbitrators shall be final
and fully effective as

                                      -32-
<PAGE>

between the parties when the award is issued to the parties without regard to
the filing by any party of judicial proceedings seeking to set aside, vacate or
modify the award. If proceedings are filed as to any award and a final judicial
determination is made setting aside, vacating or modifying the award, the
parties shall take all appropriate actions to comply with such determination,
including the revocation or unwinding of any actions taken or restoration of any
payments made pursuant to the arbitral award with interest thereon at the
prevailing rate. In any consolidated arbitration to be held pursuant to this
Section 7.08(c), the procedures to be followed shall be the arbitration
procedures contained in Sections 13.2 and 13.3 of the Marketing Agreement.

  7.09  Governing Law.  This Agreement shall be governed by, and construed in
        -------------
accordance with the internal laws of the State of New York, U.S.A., without
giving effect to choice of laws provisions.

  7.10  Headings.  Article, section and subsection headings in this Agreement
        --------
are included herein for convenience of reference only and shall not constitute a
part of this Agreement for any other purpose.

  7.11  Counterparts.  This Agreement may be executed in any number of
        ------------
counterparts, all of which taken together shall constitute one and the same
instrument, and any of the parties hereto may execute this Agreement by signing
any such counterpart.

  7.12  Compliance with BAT Law.  If, following the Closing and consummation of
        -----------------------
the transactions contemplated hereby and by the Related Agreements, the Conselho
Administrativo da Defesa Economica shall require any changes to such
transactions as so consummated, the parties agree to negotiate in good faith to
make modifications to the terms and conditions of this Agreement and the Related
Agreements and/or enter into such additional agreements or arrangements as
reasonably may be necessary to provide to each of the parties the economic and
other benefits provided the parties herein and in the Related Agreements.

  7.13  Interpretation.  The parties hereto acknowledge and agree that: (i) each
        --------------
party and its counsel have reviewed the terms and provisions of this Agreement;
(ii) the rule of construction to the effect that any ambiguities are resolved
against the drafting party shall not be employed in the interpretation of this
Agreement; and (iii) the terms and provisions of this Agreement shall be
construed fairly as to the parties hereto and not in favor of or against any
party, regardless of which party was generally responsible for the preparation
of this Agreement. Except as the context may otherwise require, whenever used
herein, the singular number shall include the plural, the plural shall include
the singular, the use of any gender shall include all persons.  All references
to dollars or the symbol "$" shall refer to United States Dollars.

  7.14  No Broker or Finder.  Each of the parties hereto represents and warrants
        -------------------
to the other that no broker, finder or other financial consultant has acted on
its behalf in connection with this Agreement or the transactions contemplated
hereby in such a way as to create any liability on the part of the other.  Each
of the parties hereto agrees to indemnify and save the other harmless from any
claim or demand for commission or other compensation by any broker, finder,
financial consultant or similar agent claiming to have been employed by or on
behalf of such party and to bear the cost of legal expenses incurred in
defending against any such claim.

                                      -33-
<PAGE>

  7.15  Investigations. The representations, warranties and agreements of each
        --------------
party hereto will remain operative and in full force and effect regardless of
any investigation made by or on behalf of any other party hereto, any Person
controlling any such party or any of their officers, directors, representatives
or agents whether prior to or after the execution of this Agreement.

                                      -34-
<PAGE>

  IN WITNESS WHEREOF, the parties hereto have caused this Stock Subscription
Agreement to be executed as of the date first above written.

                         AMERICA ONLINE LATIN AMERICA, INC.

                         By:/s/ Charles M. Herington
                            ------------------------------------------
                         Name:  Charles M. Herington
                         Title: President and Chief Executive Officer

                         BANCO ITAU, S.A.

WITNESS:
                         By:/s/ Roberto Egydio Setubal
                            ------------------------------------------
By: _________________    Name:  Roberto Egydio Setubal
Name:                    Title: President and Chief Executive Officer
Title:

WITNESS:
                         By:/s/ Milton Luis Ubach Monteiro
                            ------------------------------------------
By: _________________    Name:  Milton Luis Ubach Monteiro
Name:                    Title: Executive Vice President
Title:

                         BANCO BANERJ, S.A.

WITNESS:
                         By:/s/ Roberto Egydio Setubal
                            ------------------------------------------
By: _________________    Name:  Roberto Egydio Setubal
Name:                    Title: President
Title:

WITNESS:
                         By:/s/ Ronald Anton de Jongh
                            ------------------------------------------
By: _________________    Name:  Ronald Anton de Jongh
Name:                    Title: Executive Director
Title:

                                      -35-
<PAGE>

The parties signing below are signing for the limited purpose of joining the
covenants contained in Section 5.04 of this Agreement.

                              AMERICA ONLINE, INC.

                              By: /s/ David M. Colburn
                                 -----------------------------------
                              Name:   David M. Colburn
                                   ---------------------------------
                              Title: President, Business Affairs
                                    --------------------------------

                              RIVERVIEW MEDIA CORP.

                              By: /s/ Steven Bandel
                                 -----------------------------------
                              Name:   Steven Bandel
                                   ---------------------------------
                              Title:  Attorney in Fact
                                    --------------------------------

                                      -36-<PAGE>

                                                                   EXHIBIT 10.15

                REGISTRATION RIGHTS AND STOCKHOLDERS' AGREEMENT

     This REGISTRATION RIGHTS AND STOCKHOLDERS' AGREEMENT (this "Agreement") is
                                                                 ---------
made as of this ____ day of __________, 2000, by and among America Online Latin
America, Inc., a Delaware corporation having its principal place of business at
6600 N. Andrews Avenue, Suite 500, Fort Lauderdale, Florida  33309 (the

"Company"), Banco Itau, S.A., a Brazilian Sociedade Anonima having its principal
 -------
registered office at 176 Rua Boa Vista, Sao Paulo ("Itau") and Banco Banerj,
                                                    ----
S.A., a Brazilian Sociedade Anonima having its principal registered office at
Rua da Alfandega 28, 9th Floor, Rio de Janeiro, RJ, (with Itau, each a

"Stockholder" and collectively, the "Stockholders"), and, for the limited
------------                         ------------
purpose of joining in the covenants contained in Sections 10.2, 10.3, 10.4 and
10.5 hereof, America Online, Inc., a Delaware corporation, and Riverview Media
Corp., a British Virgin Islands corporation.

     WHEREAS, the Company has issued to the Stockholders shares of its Common
Stock (as defined herein) pursuant to a Regulation S Stock Subscription
Agreement dated June 12, 2000 between the Company and the Stockholders (the
"Stock Subscription Agreement"); and
-----------------------------

     WHEREAS, the Company and the Stockholders wish to provide, among other
things, for certain registration and other rights for the Stockholders and
certain restrictions on the Stockholders' ability to sell the Shares (as defined
below).

     NOW, THEREFORE, in consideration of the premises and the mutual covenants
and conditions herein contained, the parties hereto hereby agree as follows:

     Section 1.  Definitions
     ---------   -----------

     Section 1.1.  As used in this Agreement, the following terms shall have the
     -----------
following meanings:

     "Affiliate" shall have the meaning given in the Exchange Act.
      ---------

     "Agreement" shall have the meaning given in the Preamble.
      ---------

     "AOL" means America Online, Inc., a Delaware corporation, and it
      ---
successors.

     "Available Shares" means, (i) at any time prior to the consummation of the
      ----------------
IPO, all of  the shares of Common Stock owned by the Stockholders and (ii) at
any time after the consummation of the IPO, all of the Unrestricted Shares of
Common Stock.

THE SHARES OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE "ACT") AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES
OR TO U.S. PERSONS (OTHER THAN DISTRIBUTORS) UNLESS SUCH SHARES ARE REGISTERED
UNDER THE ACT, OR AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE ACT IS
AVAILABLE.  IN ADDITION, HEDGING TRANSACTIONS INVOLVING THE SHARES MAY NOT BE
CONDUCTED UNLESS IN COMPLIANCE WITH THE ACT.
<PAGE>

     "Board" means the Board of Directors of the Company as constituted from
      -----
time to time.

     "Business Day" means any day, other than a Saturday or Sunday, on which
      ------------
federally chartered banks in the United States and Brazil are open for business.

     "Change in Control" shall mean the first to occur of the following: (a) the
      -----------------
date on which AOL and ODC do not own, collectively, shares of capital stock of
the Company representing more than fifty percent (50%) of the voting power
entitled to be cast at elections for directors ("Voting Power") of the Company,
                                                 ------------
(b) the date on which AOL and ODC do not, collectively, have the right to elect
either (i) at least a majority of the Board of Directors of the Company or (ii)
at least a majority of the members of the Special Committee of the Board of
Directors of the Company (as such term is defined in the Restated Certificate of
Incorporation), so long as such Special Committee is constituted and empowered
as set forth in the Restated Certificate of Incorporation (the "Special
                                                                -------
Committee"), (c) any Person or Persons other than AOL or ODC acquires any
---------
general power to prevent the Company's Board of Directors or shareholders from
taking action on a substantial range of corporate actions without the approval
of such Person or Persons other than pursuant to covenants and agreements of the
Company contained in any loan documents, indentures or similar agreements
entered into in connection with any bona  fide indebtedness for money borrowed
by the Company after the date hereof, or (d) the date on which the Company
sells, leases, exchanges or otherwise transfers (in one transaction or a series
of related transactions) all or substantially all of the assets of the Company
to any Person other than one in which (x) AOL and ODC own, collectively, shares
of capital stock or other equity securities of the acquiring Person representing
more than fifty percent (50%) of the Voting Power or collectively have the right
to elect at least a majority of the board of directors or managers, as
applicable, of the acquiring Person, (y) no Person or Persons other than AOL or
ODC has any general power described in clause (c) above with respect to such
acquiring Person and (z) the Holders have not less than the same proportionate
interest in such acquiring Person vis-a-vis AOL and ODC as they had in the
Company immediately prior to consummation of such sale, lease, assignment or
transfer.

     Notwithstanding the foregoing, a Change of Control shall not be deemed to
have occurred pursuant to clauses (a) or (b) so long as AOL, together with any
Subsidiary, not less than seventy-five percent (75%) of the outstanding equity
securities and Voting Power of which are owned, directly or indirectly, by AOL,
together with another third party, (i) retains not less than fifty percent (50%)
of the Voting Power of the Company, with AOL retaining greater Voting Power in
the Company than such third party and (ii) has the right to elect either (i) at
least a majority of the Board of Directors of the Company or (ii) at least a
majority of the members of the Special Committee.

     "Closing Price" means, as of any date, the closing price of the Common
      -------------
Stock on the trading date immediately preceding the date in question as reported
in the Eastern Edition of The Wall Street Journal or, if The Wall Street Journal
                          -----------------------        -----------------------
does not then report the sales price of the Common Stock, such other source as
reasonably shall be selected by the board of the directors of the Company.

                                       2
<PAGE>

     "Commission" means the Securities and Exchange Commission, or any successor
      ----------
agency performing the functions currently performed by the Securities and
Exchange Commission.

     "Common Stock" means the Class A Common Stock, par value $.01 per share, of
      ------------
the Company.

     "Company" shall have the meaning given in the Preamble.
      -------

     "Demand Filing Date" shall have the meaning given in Section 3.2.
      ------------------

     "Demand Holder" shall have the meaning given in Section 3.1.
      -------------

     "Demand Registration" shall have the meaning given in Section 3.1.
      -------------------

     "Demand Request" shall have the meaning given in Section 3.1.
      --------------

     "Effective Date" means the date on which the shares of Common Stock are
      --------------
issued to the Stockholders pursuant to the provisions of the Stock Subscription
Agreement.

     "Exchange Act" means the Securities Exchange Act of 1934, as amended, and
      ------------
the rules and regulations of the Commission promulgated thereunder, as amended.

     "Holder" means, as of any date, the Stockholders and each other person to
      ------
whom a Stockholder shall have assigned any rights hereunder in accordance with
the provisions of Section 12.6 and who owns Registrable Securities as of such
date.

     "Indemnified Party" shall have the meaning given in Section 9.3.
      -----------------

     "Indemnifying Party" shall have the meaning given in Section 9.3.
      ------------------

     "IPO" means the initial public offering of the Common Stock pursuant to an
      ---
offering registered under the Securities Act.

     "Itausa" means Itausa-Investimentos Itau, S.A., a Brazilian Sociedade
      ------
Anonima.

     "Launch Date" shall have the meaning given in the Marketing Agreement.
      -----------

     "Lock-Up Agreement" means the agreement between each Holder and the
      -----------------
managing underwriter or underwriters for the IPO, pursuant to which each Holder
agrees that it will not, during the Lock-Up Period (as defined below) offer to
sell, contract to sell, or otherwise sell, dispose of, loan, pledge or grant any
rights with respect to any shares of Common Stock, any options or warrants to
purchase any shares of Common Stock, or any securities convertible into or
exchangeable for any shares of Common Stock now owned or hereafter acquired
directly by

                                       3
<PAGE>

such Holder or with respect to which such Holder has or hereafter acquires the
power of disposition, provided such restriction shall not apply to (i) transfers
to Permitted Stockholder Affiliates or (ii) Repo transactions effected in
accordance with the provisions of Section 10.1(f).

     "Lock-Up Period" means the respective period agreed to in a Lock-Up
      --------------
Agreement during which time each Holder agrees that it will not offer to sell,
contract to sell, or otherwise sell, dispose of, loan, pledge or grant any
rights with respect to any shares of Common Stock, any options or warrants to
purchase any shares of Common Stock, or any securities convertible into or
exchangeable for any shares of Common Stock now owned or hereafter acquired
directly by such Holder or with respect to which such Holder has or hereafter
acquires the power of disposition, provided such restriction shall not apply to
(i) transfers to Permitted Stockholder Affiliates or (ii) Repo transactions
effected in accordance with the provisions of Section 10.1(f).

     "Losses" shall have the meaning given in Section 9.1.
      ------

     "Marketing Agreement" means the Strategic Interactive Services and
      -------------------
Marketing Agreement, dated as of June 12, 2000, by and between the Company,
America Online Brasil Ltda., a Brazilian limited liability quota company
("AOLB"), and Itau.
  ----

     "ODC" means Riverview Media Corp., a British Virgin Islands corporation,
      ---
and its successors.

     "Permitted Stockholder Affiliate" means any Person, not less than seventy-
      -------------------------------
five percent (75%) of the outstanding equity securities and Voting Power of
which are owned, directly or indirectly, by Itau or Itausa.

  "Person" means an individual, corporation, partnership, limited liability
   ------
company, joint venture, trust, university, or unincorporated organization, or a
government or any agency or political subdivision thereof.

     "Proceeding" means an action, claim, suit, investigation or proceeding
      ----------
(including, without limitation, an investigation or partial proceeding, such as
a deposition), whether commenced or threatened.

     "Prospectus" means any prospectus included in a Registration Statement
      ----------
(including, without limitation, a prospectus that includes any information
previously omitted from a prospectus filed as part of an effective Registration
Statement in reliance upon Rule 430A promulgated under the Securities Act), as
amended or supplemented by any prospectus supplement, with respect to the terms
of the offering of any portion of the Registrable Securities covered by any
Registration Statement, and all other amendments and supplements to the
Prospectus, including post-effective amendments, and all material incorporated
by reference in such Prospectus.

     "Register," "Registered" and "Registration," whether or not capitalized,
      --------    ----------       ------------
mean and refer to a registration effected by preparing and filing a Registration
Statement in compliance with the

                                       4
<PAGE>

Securities Act, and the declaration or ordering of the effectiveness of such
Registration Statement.

     "Registrable Securities" means any Unrestricted Shares owned by a Holder;
      ----------------------
provided, however, that Unrestricted Shares that are Registrable Securities
shall cease to be Registrable Securities (x) upon the consummation of any sale
of such shares pursuant to (i) an effective Registration Statement under the
Securities Act or (ii) Regulation S or Rule 144, (y) at such time, if any, as
such shares of Common Stock (which are issued or which may become issued upon
conversion or exchange of any other security) become eligible for sale under
Rule 144(k) under the Securities Act and (z) with respect to any Holder, on the
first date when all of the Registrable Securities then held by such Holder are
eligible for sale during a single three month period under Rule 144.

     "Registration Expenses" shall have the meaning given in Section 8.
      ---------------------

     "Registration Statement" means any registration statement filed with the
      ----------------------
Commission by the Company pursuant to the Securities Act and any additional
registration statement, including (in each case) the Prospectus, amendments and
supplements to such registration statement or Prospectus, including pre- and
post-effective amendments, all exhibits thereto, and all material incorporated
by reference in such registration statement to be filed pursuant to the terms of
this Agreement.

     "Regulation S" means Regulation S promulgated by the Commission pursuant to
      ------------
the Securities Act, as such Rule may be amended from time to time, or any
similar rule or regulation hereafter adopted by the Commission having
substantially the same effect as such Regulation.

     "Repo" shall have the meaning given in Section 10.1(f).
      ----

     "Required Efforts" means (i) best efforts, with respect to any registration
      ----------------
of Registrable Securities having an aggregate market value of at least
$100,000,000 (or, if the registration relates to all of the then outstanding
Registrable Securities, $50,000,000), based on the closing market price for the
Common Stock on the trading day prior to the Company's receipt of the request at
issue and before calculation of underwriting discounts and commissions, and (ii)
all commercially reasonable efforts, with respect to any other registration of
Registrable Securities.

     "Restated Certificate of Incorporation" means the Company's Restated
      -------------------------------------
Certificate of Incorporation as proposed to be adopted by the Company in
connection with the consummation of the IPO in accordance with the terms of the
Letter Agreement, dated as of January 20, 2000, by and between the Company,
America Online, Inc., Riverview Media Corp. and Mintz, Levin, Cohn, Ferris,
Glovsky and Popeo, P.C.

     "Restricted Shares" shall have the meaning given in Section 10.1(b).
      -----------------

                                       5
<PAGE>

     "Rule 144" means Rule 144 promulgated by the Commission pursuant to the
      --------
Securities Act, as such Rule may be amended from time to time, or any similar
rule or regulation hereafter adopted by the Commission having substantially the
same effect as such Rule.

     "Rule 158" means Rule 158 promulgated by the Commission pursuant to the
      --------
Securities Act, as such Rule may be amended from time to time, or any similar
rule or regulation hereafter adopted by the Commission having substantially the
same effect as such Rule.

     "Rule 415" means Rule 415 promulgated by the Commission pursuant to the
      --------
Securities Act, as such Rule may be amended from time to time, or any similar
rule or regulation hereafter adopted by the Commission having substantially the
same effect as such Rule.

     "Securities Act" means the Securities Act of 1933, as amended, and the
      --------------
rules and regulations of the Commission promulgated thereunder, as amended.

     "Shares" means the shares of Common Stock issued to the Stockholders
      ------
pursuant to the Stock Subscription Agreement, together with securities issued
with respect to, or in exchange for or in replacement of, such shares by way of
stock dividend, stock distribution or stock split, or in connection with a
combination of shares, recapitalization, merger, consolidation or reorganization
or otherwise.

     "Stockholder" and "Stockholders" shall have the meanings given in the
      -----------       ------------
Preamble.

     "Underwritten Registration or Underwritten Offering" means a registration
      --------------------------------------------------
in connection with which securities of the Company are sold to an underwriter
for reoffering to the public pursuant to an effective Registration Statement.

     "Unrestricted Shares" shall have the meaning given in Section 10.1(c).
      -------------------

     Section 2.  "Piggy-Back" Registrations
     ---------   --------------------------

     Section 2.1.  "Piggy-Back" Rights.  If at any time after the IPO the
     -----------   -------------------
Company shall determine to register for its own account or the account of others
under the Securities Act (including (i) in connection with a public offering by
the Company other than the IPO or (ii) a demand for registration made by any
stockholder of the Company including any of the parties hereto) any of its
equity securities (other than on Form S-4 or Form S-8 or their then equivalents
relating to shares of Common Stock to be issued solely in connection with any
acquisition of an entity or business or shares of Common Stock issuable in
connection with stock option or other employee benefit plans) it shall send to
each Holder written notice of such determination and if, within 30 days after
the mailing of such notice, such Holder shall so request in writing, the Company
shall use its Required Efforts to include in such Registration Statement all or
any part of the Registrable Securities such Holder requests to be registered.
The Company shall have the right to postpone or withdraw any registration
effected pursuant to this Section 2.1 without any obligation to any Holder.

                                       6
<PAGE>

     Section 2.2.  Underwritten Offerings.  If the registration of which the
     -----------   ----------------------
Company gives notice is for an Underwritten Offering, the Company shall so
advise the Holders as a part of the written notice given pursuant to Section
2.1.  In such event, the right of any Holder to registration pursuant to Section
2.1 shall be conditioned upon such Holder's participation in such Underwritten
Offering and the inclusion of such Holder's Registrable Securities in the
Underwritten Offering to the extent provided herein. All Holders proposing to
distribute their securities through such Underwritten Offering shall (together
with the Company and the other holders of securities of the Company with
registration rights to participate therein distributing their securities through
such underwriting) enter into an underwriting agreement in customary form with
the representative of the underwriter or underwriters selected by the Company or
the stockholders effecting such registration.

     Notwithstanding any other provision of this Section 2, if the managing
underwriter shall preclude any shares of Common Stock from being included in the
Registration Statement as to which a Holder has elected to exercise the piggy-
back rights granted pursuant to this Section 2 or otherwise impose a limitation
on the number of shares of such Common Stock which may be included in the
Registration Statement as to which a Holder has elected to exercise the piggy-
back rights granted pursuant to this Section 2 because, in such underwriter's
reasonable judgment, such preclusion or limitation is necessary to effect an
orderly public distribution, the number of shares to be included in the
Underwritten Offering or registration, if any, shall be allocated as set forth
in Section 2.3.  If any person does not agree to the terms of any such customary
underwriting agreement, such person shall be excluded therefrom by written
notice from the Company or the underwriter. Any Registrable Securities or other
securities excluded or withdrawn from such Underwritten Offering shall be
withdrawn from such registration.  If shares are so withdrawn from the
registration and if the number of shares of Registrable Securities to be
included in such registration was previously reduced as a result of marketing
factors, the Company shall then offer to all persons who have retained the right
to include securities in the registration the right to include additional
securities in the registration in an aggregate amount equal to the number of
shares so withdrawn, with such shares to be allocated among the persons
requesting additional inclusion in accordance with Section 2.3.

     Section 2.3.  Cut-backs in "Piggy-Back" Registrations.  For purposes of
     -----------   ---------------------------------------
this Section 2, in any circumstance in which all of the Registrable Securities
and other shares of Common Stock or other securities of the Company (including
shares of Common Stock issued or issuable upon conversion of any outstanding
securities of the Company) with registration rights (the "Other Shares")
                                                          ------------
requested to be included in a registration on behalf of the Holders or other
selling stockholders cannot be so included as a result of limitations of the
aggregate number of shares of Registrable Securities and Other Shares that may
be so included, the number of shares of Registrable Securities and Other Shares
that may be so included, if any, shall be allocated first to the Company for
securities being sold for its own account and second to all holders of the
Company's common stock, including any Holders hereunder, who timely exercised
their piggy-back registration rights pro rata based upon their total ownership
of the aggregate number of shares requested to be included in such registration
by the holders of piggy-back registration rights, or if such registration is a
demand registration initiated by the Company on behalf of any other holders of
demand registration rights, (i) first to such holders pro rata based upon their

                                       7
<PAGE>

total ownership of the aggregate number of shares requested to be included in
such registration by the holders of demand registration rights, (ii) second to
all holders of the Company's common stock, including any Holders hereunder, who
timely exercised their piggy-back registration rights pro rata based upon their
total ownership of the aggregate number of shares requested to be included in
such registration by the holders of piggy-back registration rights, and (iii)
thereafter to the Company for securities being sold for its own account. The
Company shall not limit the number of Registrable Securities to be included in a
registration pursuant to this Agreement in order to include shares held by
stockholders with no registration rights.

     Section 3.  "Demand" Registrations
     ---------   ----------------------

     Section 3.1.  "Demand" Rights.  At any time following the first anniversary
     -----------   ---------------
of the  Effective Date, each Holder (a "Demand Holder") may, from time to time,
                                        -------------
make a written request (each a "Demand Request") for registration under the
                                --------------
Securities Act (a "Demand Registration") of all or part of the Registrable
                   -------------------
Securities held by such Holder; provided, however, that the Registrable
Securities requested to be registered shall, on the date that the Demand Request
is delivered, have an aggregate market value of at least $50,000,000 before
calculation of underwriting discounts and commissions (based on the closing
market price for the Common Stock on the trading day prior to the Company's
receipt of the Demand Request).  Each Demand Request shall specify the number of
Registrable Shares proposed to be sold by such Demand Stockholder.

     Section 3.2.  Within 15 days after receipt of each Demand Request, the
     -----------
Company shall give written notice of such Demand Request to all non-requesting
Holders and shall use its Required Efforts to cause a Registration Statement to
be filed with the Commission on a date (the "Demand Filing Date") not later than
                                             ------------------
120 days after the Company's  receipt of a Demand Request, and shall use its
Required Efforts to cause the same to be declared effective by the Commission as
promptly as practicable after such filing. Both the initial Demand Request and
any request to join in such Demand Request shall be considered a single Demand
Request. The Registration Statement shall cover the Registrable Securities
specified in the Demand Request, together with all or such portion of the
Registrable Securities of any Holder joining in such request as are specified in
a written request received by the Company within 20 days after the written
notice of the Demand Request from the Company is mailed or delivered to the non-
requesting Holders.  Subject to Sections 3.6 and 3.7, the Registration Statement
filed pursuant to the request of the Demand Holders may also include other
securities of the Company.

     Section 3.3.  Limitations on Demand Rights.  Notwithstanding any other
     -----------   ----------------------------
provision set forth in this Section 3, no Holder shall be entitled to deliver a
Demand Request within 90 days after the effectiveness of any Registration
Statement filed (i) by the Company pursuant to an Underwritten Offering by the
Company or (ii) on behalf of any Demand Holder or any other holder of demand
registration rights with respect to the Common Stock.

     The Company shall not be obligated to effect, or to take any action to
effect, any such registration pursuant to Section 3.2:

                                       8
<PAGE>

     (a) if the Company has initiated three (3) such registrations pursuant to
Section 3.2, provided that only the following registrations shall be counted:
(1) registrations which have been declared or ordered effective and pursuant to
which Registrable Securities have been sold and (2) registrations which have
been withdrawn by the Holders (other than pursuant to the last sentence of
Section 3.4) as to which the Holders have not elected to bear the Registration
Expenses;

     (b) if the Demand Holders request that the offering be underwritten in any
manner other than a firm commitment basis by underwriters selected by the
Company (subject to the consent of a majority of the Demand Holders, which
consent will not be unreasonably withheld, conditioned or delayed, or, if the
Company has not selected an underwriter within 30 days after its receipt of a
Demand Request, by the underwriters selected by holders of a majority of the
Registrable Securities to be included in such Registration Statement) or if the
Demand Holders request that the offering not be underwritten; or

     (c) if the Company and the Demand Holders are unable to obtain the
commitment of the underwriter described in clause (b) above to firmly underwrite
the offer.

     Section 3.4.  Deferral of Demand Registrations.  The Company may defer the
     -----------   --------------------------------
filing (but not the preparation) of a Registration Statement required to be
filed by this Section 3 until a date not later than 120 days after the Demand
Filing Date if:

     (a) at the time the Company receives the Demand Request, there is (i)
material non-public information regarding the Company which the Board reasonably
determines not to be in the Company's interest to disclose and which the Company
is not otherwise required to disclose, or (ii) there is a significant business
opportunity (including but not limited to the acquisition or disposition of
assets (other than in the ordinary course of business) or any merger,
consolidation, tender offer or other similar transaction) available to the
Company which the Board reasonably determines not to be in the Company's best
interest to disclose; or

     (b) prior to receiving the Demand Request, the Board had determined to
effect an Underwritten Offering and the Company had taken substantial steps and
is proceeding with reasonable diligence to effect such Underwritten Offering.

     A deferral of the filing of a Registration Statement pursuant to this
Section 3.4 shall be lifted, and the requested Registration Statement shall be
filed forthwith, if, (x) in the case of a deferral pursuant to clause (a)(i),
the material non-public information is made public by the Company or is no
longer material, (y) in the case of a deferral pursuant to clause (a)(ii), the
significant business opportunity is disclosed by the Company or is terminated,
or (z) in the case of a deferral pursuant to clause (b), the proposed
registration for the Company's account is abandoned.  In order to defer the
filing of a Registration Statement pursuant to this Section 3.4, the Company
shall promptly (but in any event within 10 days), upon determining to seek such
deferral, deliver to each Demand Holder a certificate signed by an executive
officer of the Company stating that the Company is deferring such filing
pursuant to this Section 3.4 and containing an approximation of the anticipated
delay. Within 20 days after receiving such certificate, the holders of a
majority of the Registrable Securities held by the Demand Holder and

                                       9
<PAGE>

each other Holder and for which registration was previously requested may
withdraw such Demand Request by giving written notice to the Company.

     Section 3.5.  Right to Participate.  The rights of any Holder to
     -----------   --------------------
participate in an underwritten registration pursuant to this Section 3 shall be
conditioned upon such Holder's participation in such underwriting and the
inclusion of such Holder's Registrable Securities in the underwriting to the
extent provided herein.

     Section 3.6.  Participation in Demand Registrations.  If the Company shall
     -----------   -------------------------------------
request inclusion in any registration pursuant to Section 3.2 of securities
being sold for its own account, or if persons holding Other Shares shall request
inclusion in any registration pursuant to Section 3.2, the Demand Holders shall,
on behalf of all Holders, offer to include such securities in the registration
and may condition such offer on such persons' acceptance of the further
applicable provisions of this Agreement (including Section 6). The Company shall
(together with all Holders and other persons proposing to distribute their
securities through such registration) enter into an underwriting agreement in
customary form with the representative of the underwriter or underwriters.
Notwithstanding any other provision of this Section 3, if the managing
underwriter shall preclude any shares of Common Stock from being included in the
Registration Statement as to which a Holder has elected to exercise the piggy-
back rights granted pursuant to Section 3.2 or otherwise impose a limitation on
the number of shares of such Common Stock which may be included in a
Registration Statement being filed pursuant to Section 3.2 because in its
judgment, such limitation is necessary to effect an orderly public distribution,
the number of shares to be included in the underwriting or registration, if any,
shall be allocated as set forth in Section 3.7. If a person who has requested
inclusion in such registration as provided above does not agree to the terms of
any such underwriting, such person shall be excluded therefrom by written notice
from the Company, the underwriter or the Demand Holders holding a majority of
the securities being requested in such offering (not including such non-agreeing
holders). Any Registrable Securities or other securities excluded shall also be
withdrawn from such registration.  If shares are so withdrawn from the
registration and the number of shares to be included in such registration was
previously reduced as a result of marketing factors pursuant to this Section
3.6, then the Company shall offer to all persons who have retained rights to
include securities in the registration the right to include additional
securities in the registration in an aggregate amount equal to the number of
shares so withdrawn, with such shares to be allocated among such persons
requesting additional inclusion in accordance with Section 3.7.

     Section 3.7.  Cutbacks in Demand Registrations.  For purposes of Sections
     -----------   --------------------------------
3.2 and 3.6, in any circumstance in which all of the Registrable Securities and
Other Shares requested to be included in a registration on behalf of the Holders
undertaken pursuant to said Section 3.2 cannot be so included as a result of
limitations of the aggregate number of shares of Registrable Securities and
Other Shares, if any, that may be so included pursuant to Section 3.6, the
number of shares of Registrable Securities and Other Shares that may be so
included shall be allocated among the Holders and other selling stockholders
requesting inclusion of shares (i) first, to each Holder, pro rata on the basis
of the number of shares of Registrable Securities held by such Holders that such
Holders had timely  requested to be included in the registration, (ii)
thereafter, to the selling holders of the Other Shares, pro rata on the basis of
the number of Other Shares

                                       10
<PAGE>

that such other selling stockholders had requested to be included in the
registration, and (iii) thereafter to the Company. The Company shall not limit
the number of Registrable Securities to be included in a registration pursuant
to Section 3.2 in order to include shares held by any other stockholders or by
the Company.

     Section 4.  S-3 Registrations.
     ---------   -----------------

     At any time after the Company becomes eligible to file a Registration
Statement on Form S-3 (or any successor form relating to secondary offerings),
Holders of Registrable Securities may request the Company, in writing, to effect
the registration on Form S-3 (or such successor form), of Registrable Shares
having an aggregate market value of at least $25,000,000 (based on the closing
market price for the Common Stock on the trading day prior to the Company's
receipt of the request).  The Company shall not be obligated to effect any
registration under this Section 4 (i) if in a given six month period, the
Company has effected one (1) such registration in such period, or (ii) if the
Company has initiated four (4) such registrations pursuant to this Section 4,
provided that only the following registrations shall be counted: (1)
registrations which have been declared or ordered effective and pursuant to
which Registrable Securities have been sold and (2) registrations which have
been withdrawn by the Holders (other than pursuant to the last sentence of
Section 3.4) as to which the Holders have not elected to bear the Registration
Expenses.  Upon receipt of any such request, the Company shall promptly give
written notice of such proposed registration to all Holders from whom notice has
not been received.  Such Holders shall have the right, by giving written notice
to the Company within 20 days after the Company provides its notice, to elect to
have included in such registration such of their Registrable Securities as such
Holders may request in such notice of election.  The provisions of Sections 3.5
through 3.7 shall apply to such registration.  Thereupon the Company shall use
its Required Efforts to effect the registration on Form S-3, or such successor
form, of all Registrable Securities that the Company has been requested to
register in connection with such registration.

     Section 5.  Registration Procedures
     ---------   -----------------------

     Whenever any Holder has requested that any Registrable Securities be
registered pursuant to this Agreement, the Company shall use its Required
Efforts to effect the registration of such Registrable Securities and in
furtherance thereof the Company shall:

     (a) prepare and file with the Commission on any appropriate form under the
Securities Act with respect to such Registrable Securities and use its Required
Efforts to cause such Registration Statement to become effective;

     (b) (i) prepare and file with the Commission such amendments, including
post-effective amendments and supplements to the Registration Statement as may
be necessary to keep the Registration Statement continuously effective as to the
applicable Registrable Securities for a period of not less than 180 days (or (1)
such lesser period as is necessary for the underwriters in an Underwritten
Offering to sell unsold allotments or (2) such longer period as may be
commercially reasonable if such Registration Statement is for a shelf
registration conducted pursuant to the provisions of Rule 415 (or any similar
provisions then in force)

                                       11
<PAGE>

promulgated under the Securities Act), but in any case not including in such 180
days any period for which sales have been discontinued pursuant to Section 7(c);
(ii) cause the related Prospectus to be amended or supplemented by any required
Prospectus supplement, and, as so supplemented or amended, to be filed pursuant
to Rule 424 (or any similar provisions then in force) promulgated under the
Securities Act; (iii) respond as promptly as possible to any comments received
from the Commission with respect to the Registration Statement or any amendment
thereto and, as promptly as possible, provide the Holders true and complete
copies of all correspondence from and to the Commission relating to the
Registration Statement; and (iv) comply in all material respects with the
provisions of the Securities Act and the Exchange Act with respect to the
disposition of all Registrable Securities covered by the Registration Statement
during the applicable period in accordance with the intended methods of
disposition set forth in the Registration Statement as so amended or in such
Prospectus as so supplemented;

     (c) (i) furnish to the Holders of Registrable Securities to be sold, their
counsel and any managing underwriters, copies of all such documents proposed to
be filed, which documents (other than those incorporated by reference) will be
subject to the review of such Holders, their counsel and such managing
underwriters, and (ii) cause its officers and directors, counsel and independent
certified public accountants to respond to such inquiries as shall be necessary,
in the reasonable opinion of respective counsel to such Holders and such
underwriters, to conduct a reasonable investigation within the meaning of the
Securities Act;

     (d) notify the Holders of Registrable Securities to be sold, their counsel
and any managing underwriters as promptly as possible and confirm such notice in
writing no later than one Business Day following the day:

          (i)  when a Prospectus or any Prospectus supplement or post-effective
     amendment to the Registration Statement is proposed to be filed;

          (ii)  when the Commission notifies the Company whether there will be a
     "review" of such Registration Statement and whenever the Commission
     comments in writing on such Registration Statement;

          (iii)  when the Registration Statement or any post-effective amendment
     thereto has become effective;

          (iv)  of any request by the Commission or any other Federal or state
     governmental authority for amendments or supplements to the Registration
     Statement or Prospectus or for additional information;

          (v)  of the issuance by the Commission of any stop order suspending
     the effectiveness of the Registration Statement covering any or all of the
     Registrable Securities or the initiation of any Proceedings for that
     purpose;

                                       12
<PAGE>

          (vi)  when any of the representations and warranties of the Company
     contained in any agreement (including any underwriting agreement)
     contemplated hereby shall cease to be true and correct in all material
     respects;

          (vii)  of the receipt by the Company of any notification with respect
     to the suspension of the qualification or exemption from qualification of
     any of the Registrable Securities for sale in any jurisdiction, or the
     initiation or threatening of any Proceeding for such purpose; and

          (viii)  of the occurrence of any event that makes any statement made
     in the Registration Statement or Prospectus or any document incorporated or
     deemed to be incorporated therein by reference untrue in any material
     respect or that requires any revisions to the Registration Statement,
     Prospectus or other documents so that, in the case of the Registration
     Statement or the Prospectus, as the case may be, it will not contain any
     untrue statement of a material fact or omit to state any material fact
     required to be stated therein or necessary to make the statements therein,
     in light of the circumstances under which they were made, not misleading;

     (e)  use all Required Efforts to avoid the issuance of, or, if issued,
obtain the withdrawal of (i) any order suspending the effectiveness of the
Registration Statement or (ii) any suspension of the qualification (or exemption
from qualification) of any of the Registrable Securities for sale in any
jurisdiction, at the earliest practicable moment;

     (f)  if reasonably requested by any managing underwriter, if any
Registrable Securities are to be sold in connection with an Underwritten
Offering, (i) promptly incorporate in a Prospectus supplement or post-effective
amendment to the Registration Statement such information as the Company
reasonably agrees should be included therein and (ii) thereafter make all
required filings of such Prospectus supplement or such post-effective amendment
as soon as practicable after the Company has received notification of the
matters to be incorporated in such Prospectus supplement or post-effective
amendment; provided, however, that the Company shall not be required to take any
action pursuant to this clause (f) that would, in the opinion of counsel for the
Company, violate applicable law;

     (g)  furnish to each Holder of Registrable Securities to be sold, their
counsel and any managing underwriters, without charge, at least one conformed
copy of each Registration Statement and each amendment thereto, including
financial statements and schedules, all documents incorporated or deemed to be
incorporated therein by reference, and all exhibits to the extent requested by
such person (including those previously furnished or incorporated by reference)
promptly after the filing of such documents with the Commission;

     (h)  promptly deliver to each Holder of Registrable Securities to be sold,
their counsel, and any underwriters, without charge, as many copies of the
Prospectus or Prospectuses (including each form of Prospectus) and each
amendment or supplement thereto as such persons may reasonably request; and the
Company hereby consents to the use of such Prospectus and each amendment or
supplement thereto by each of the selling stockholders and any underwriters

                                       13
<PAGE>

in connection with the offering and sale of the Registrable Securities covered
by such Prospectus and any amendment or supplement thereto;

     (i)  prior to any public offering of Registrable Securities, use its
Required Efforts to register or qualify or cooperate with the selling Holders,
any underwriters and their counsel in connection with the registration or
qualification (or exemption from such registration or qualification) of such
Registrable Securities for offer and sale under the securities or Blue Sky laws
of such jurisdictions within the United States as any selling Holder or
underwriter requests in writing, to keep each such registration or qualification
(or exemption therefrom) effective for at least 180 days (or such shorter period
as the applicable Registration Statement shall be effective) and to do any and
all other acts or things necessary or advisable to enable the disposition in
such jurisdictions of the Registrable Securities covered by a Registration
Statement; provided, however, that the Company shall not be required to qualify
generally to do business in any jurisdiction where it is not then so qualified
or to take any action that would subject it to general service of process in any
such jurisdiction where it is not then so subject or subject the Company to any
material tax in any such jurisdiction where it is not then so subject;

     (j)  cooperate with the selling Holders and any managing underwriters to
facilitate the timely preparation and delivery of certificates representing
Registrable Securities to be sold pursuant to a Registration Statement, which
certificates shall be free, to the extent permitted by applicable law, of all
restrictive legends, and to enable such Registrable Securities to be in such
denominations and registered in such names as any such managing underwriters or
stockholders may request at least two Business Days prior to any sale of
Registrable Securities;

     (k)  upon the occurrence of any event contemplated by Section 5(d)(viii) of
this Agreement, as promptly as possible, prepare a supplement or amendment,
including a post-effective amendment, to the Registration Statement or a
supplement to the related Prospectus or any document incorporated or deemed to
be incorporated therein by reference, and file all other required documents so
that, as thereafter delivered, neither the Registration Statement nor such
Prospectus will contain 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, in light of the circumstances under which they were made,
not misleading;

     (l)  use its Required Efforts to cause all Registrable Securities relating
to such Registration Statement to be listed on the securities exchange,
quotation system, market or over-the-counter bulletin board on which similar
securities issued by the Company are then listed;

     (m)  enter into such agreements (including an underwriting agreement in
form, scope and substance as is customary in Underwritten Offerings) and take
all such other actions in connection therewith (including those reasonably
requested by any managing underwriters in order to expedite or facilitate the
disposition of such Registrable Securities, and those reasonably requested by
the selling Holders whether or not an underwriting agreement is entered into):

                                       14
<PAGE>

          (i)  make such representations and warranties to such selling Holders
     and such underwriters as are customarily made by issuers to underwriters in
     underwritten public offerings, and confirm the same if and when requested;

          (ii)  in the case of an Underwritten Offering, obtain and deliver
     copies thereof to the managing underwriters, if any, of opinions of counsel
     to the Company and updates thereof addressed to each such underwriter, in
     form, scope and substance reasonably satisfactory to any such managing
     underwriters and counsel to the selling stockholders covering the matters
     customarily covered in opinions requested in Underwritten Offerings and
     such other matters as may be reasonably requested by such counsel and
     underwriters;

          (iii)  immediately prior to the effectiveness of the Registration
     Statement, and, in the case of an Underwritten Offering, at the time of
     delivery of any Registrable Securities sold pursuant thereto, obtain and
     deliver copies to the selling Holders and the managing underwriters, if
     any, of "cold comfort" letters and updates thereof from the independent
     certified public accountants of the Company (and, if necessary, any other
     independent certified public accountants of any subsidiary of the Company
     or of any business acquired by the Company for which financial statements
     and financial data is, or is required to be, included in the Registration
     Statement), addressed to each selling Holder and each of the underwriters,
     if any, in form and substance as are customary in connection with
     Underwritten Offerings;

          (iv)  if an underwriting agreement is entered into, the same shall
     contain indemnification provisions and procedures no less favorable to the
     selling Holders and the underwriters than those set forth in Section 9 of
     this Agreement (or such other provisions and procedures acceptable to the
     managing underwriters and such selling Holders); and

          (v)  deliver such documents and certificates as may be reasonably
     requested by the selling Holders, their counsel and any managing
     underwriters to evidence the continued validity of the representations and
     warranties made pursuant to clause (i) above and to evidence compliance
     with any customary conditions contained in the underwriting agreement or
     other agreement entered into by the Company;

     (n)  make available for inspection by the selling Holders, any
representative of such Holders, any underwriter participating in any disposition
of Registrable Securities, and any attorney or accountant retained by such
selling Holder or underwriters, at the offices where normally kept, during
reasonable business hours, all financial and other records, pertinent corporate
documents and properties of the Company and its subsidiaries, and cause the
officers, directors, agents and employees of the Company and its subsidiaries to
supply all information in each case reasonably requested by any such Holder,
representative, underwriter, attorney or accountant in connection with the
Registration Statement; provided, however, that any information that is
determined in good faith by the Company to be of a confidential nature at the
time of delivery of such information (A) shall be kept confidential by such
persons, unless (i) disclosure of such information is required by court or
administrative order or is necessary to

                                       15
<PAGE>

respond to inquiries of regulatory authorities; (ii) disclosure of such
information, in the opinion of counsel to such person, is required by law; (iii)
such information becomes generally available to the public other than as a
result of a disclosure or failure to safeguard by such person; or (iv) such
information becomes available to such person from a source other than the
Company and such source is not known by such person to be bound by a
confidentiality agreement with the Company and (B) shall not be required to be
disclosed to any representative or agent of a Holder with respect to which the
Company has a good faith basis to request, and does so request, that disclosure
of such confidential information not be made to such representative or agent;

     (o)  comply in all material respects with all applicable rules and
regulations of the Commission and make generally available to its security
holders earnings statements satisfying the provisions of Section 11(a) of the
Securities Act and Rule 158 not later than 45 days after the end of any 12-month
period (or 90 days after the end of any 12-month period if such period is a
fiscal year) (i) commencing at the end of any fiscal quarter in which
Registrable Securities are sold to underwriters in a firm commitment or best
efforts Underwritten Offering and (ii) if not sold to underwriters in such an
offering, commencing on the first day of the first fiscal quarter of the Company
after the effective date of the Registration Statement, which statement shall
conform to the requirements of Rule 158;

     (p)  require each selling Holder to furnish to the Company information
regarding such Holder and the distribution of such Registrable Securities as is
required by law to be disclosed in the Registration Statement, and the Company
may exclude from such registration the Registrable Securities of any such
selling Holder who unreasonably fails to furnish such information within a
reasonable time after receiving such request. If the Registration Statement
refers to any such Holder by name or otherwise as the holder of any securities
of the Company, then such Holder shall have the right to require (if such
reference to such Holder by name or otherwise is not required by the Securities
Act or any similar Federal statute then in force) the deletion of the reference
to such Holder in any amendment or supplement to the Registration Statement
filed or prepared subsequent to the time that such reference ceases to be
required; and

     (q)  not file a Registration Statement pursuant to Section 3.2 hereof if
Holders of a majority of the Registrable Securities covered thereby or their
counsel or any managing underwriter of the Registrable Securities covered
thereby shall reasonably object in writing within 3 Business Days of their
receipt of such Registration Statement for review pursuant to Section 5(c)(i)
hereof.

     Section 6.  Lock-Up Agreement; Stockholder Right to Review Information
     ---------   ----------------------------------------------------------

     Each Holder agrees, if such Holder is so requested by the managing
underwriter in the IPO, to enter into a Lock-Up Agreement, provided that the
Lock-Up Period required therein shall not exceed 180 days.

     In addition, after the IPO, if requested by the Company and an underwriter
of Common Stock (or other securities) of the Company, each Holder shall agree in
writing not to sell or otherwise transfer or dispose of any Common Stock (or
other securities) of the Company held by

                                       16
<PAGE>

such Holder (other than those included in the registration) during the one
hundred and eighty (180) day period following the effective date of a
registration statement of the Company filed under the Securities Act relating to
an Underwritten Offering by the Company of its securities, provided that all
stockholders of the Company holding in excess of fifteen percent (15%) of the
shares of Common Stock then outstanding (calculated on an as converted
fully-diluted basis) enter into similar agreements of no lesser duration than
that requested of such Holder and provided that such other stockholders agree
not to sell any of their Company securities during the term of the Lock-Up
Agreement pursuant to consent of the underwriters unless such Holder receives
such consent of the underwriters to sell a proportional amount of the Common
Stock held by it. Notwithstanding the foregoing, during such 180-day period, (A)
each Stockholder may (i) transfer Common Stock (or other securities) of the
Company to its Permitted Stockholder Affiliates, provided that each such
transferee executes an identical lock-up agreement and (ii) effect Repo
transactions in accordance with the provisions of Section 10.1(f) hereof and (B)
any Holder may transfer Common Stock (or other securities) of the Company to any
Affiliate, all of the outstanding equity securities and Voting Power of which is
owned, directly or indirectly, by such Holder, provided that each such
transferee executes an identical lock-up agreement .

     The obligations described in this Section 6 shall not apply to a
registration on Form S-8 or S-4 or any successor form.  The Company may impose
stop-transfer instructions with respect to the Shares (or other securities)
subject to the foregoing restrictions until the end of any applicable Lock-Up
Period.

     Prior to the Company filing with the Commission any Registration Statement
for Common Stock or any other securities of the Company, including, without
limitation, the Registration Statement relating to the IPO, the Holders shall
have a reasonable opportunity to review and comment upon any information
contained in such Registration Statement relating in any way to the Holders. The
Company agrees to request confidential treatment from the Commission for any
information relating to the Holders if reasonably requested by the Holders.

     Section 7.  Holder Covenants
     ---------   ----------------

     Each Holder hereby covenants and agrees that:

     (a)  it will not sell any Registrable Securities under a Registration
Statement until it has received notice from the Company that such Registration
Statement and any post-effective amendments thereto have become effective;

     (b)  it and its officers, directors or Affiliates, if any, will comply with
the Prospectus delivery requirements of the Securities Act as applicable to them
in connection with sales of Registrable Securities pursuant to a Registration
Statement; and

     (c)  upon receipt of a notice from the Company of the occurrence of any
event of the kind described in Section 5(d)(iv), (v), (vi), (vii) or (viii) of
this Agreement, such Holder will forthwith discontinue disposition of such
Registrable Securities under the Registration Statement until such Holder's
receipt of the copies of the supplemented Prospectus and/or amended

                                       17
<PAGE>

Registration Statement or until it is advised in writing by the Company that the
use of the applicable Prospectus may be resumed, and, in either case, has
received copies of any additional or supplemental filings that are incorporated
or deemed to be incorporated by reference in such Prospectus or Registration
Statement.

     Section 8.  Registration Expenses
     ---------   ---------------------

     Except to the extent limited by the applicable state law, all fees and
expenses incident to the performance of or compliance with this Agreement by the
Company shall be borne by the Company whether or not pursuant to an Underwritten
Offering and whether or not any Registration Statement is filed or becomes
effective and whether or not any Registrable Securities are sold pursuant to any
Registration Statement. The fees and expenses referred to in the foregoing
sentence shall include, without limitation (i) all registration and filing fees
(including, without limitation, fees and expenses (A) with respect to filings
required to be made with any securities exchange or market on which Registrable
Securities are required hereunder to be listed, and (B) in compliance with state
securities or Blue Sky laws (including, without limitation, reasonable fees and
disbursements of one counsel for all Holders in connection with Blue Sky
qualifications of the Registrable Securities and determination of the
eligibility of the Registrable Securities for investment under the laws of such
jurisdictions as the managing underwriters, if any, determine)); (ii) printing
expenses (including, without limitation, expenses of printing certificates for
Registrable Securities and of printing Prospectuses if the printing of
Prospectuses is requested by the managing underwriters, if any; (iii) messenger,
telephone and delivery expenses, (iv) fees and disbursements of counsel for the
Company; (v) Securities Act liability insurance, if the Company desires such
insurance; (vi) fees and expenses of all other persons retained by the Company
in connection with the consummation of the transactions contemplated by this
Agreement; and (vii) all of the internal expenses of the Company incurred in
connection with the consummation of the transactions contemplated by this
Agreement (including, without limitation, all salaries and expenses of its
officers and employees performing legal or accounting duties, the expense of any
annual audit, the fees and expenses incurred in connection with the listing of
the Registrable Securities on any securities exchange as required hereunder (all
such expenses being referred to herein as "Registration Expenses"); provided,
                                           ---------------------
however, that except as expressly set forth herein, in no event shall
Registration Expenses include any underwriting discounts, commissions, or fees
attributable to the sale of the Registrable Securities or, except as provided in
(i) above, any counsel, accountants or other persons retained by the Holders
incurred in connection with the consummation of the transactions contemplated by
this Agreement.

     Section 9.  Indemnification and Contribution
     ---------   --------------------------------

     Section 9.1.  Indemnification by the Company. The Company shall,
     -----------   ------------------------------
notwithstanding any termination of this Agreement, indemnify and hold harmless
each Holder and its agents, brokers, investment advisors and employees of each
of them and each underwriter of the Registrable Securities and each such
Person's respective officers, directors, affiliates, partners and any broker or
dealer through whom such shares may be sold and each person, if any, who
controls (within the meaning of Section 15 of the Securities Act) such Holder or
any such underwriter, to the

                                       18
<PAGE>

fullest extent permitted by applicable law, from and against any and all losses,
claims, damages, liabilities, costs (including, without limitation, costs of
preparation and reasonable attorneys' fees) and expenses (collectively,
"Losses"), as incurred, arising out of or relating to any untrue or alleged
 ------
untrue statement of a material fact contained in any Registration Statement, any
Prospectus or any form of Prospectus or in any amendment or supplement thereto
or in any preliminary Prospectus, or arising out of or relating to any omission
or alleged omission of a material fact required to be stated therein or
necessary to make the statements therein (in the case of any Prospectus or form
of Prospectus or supplement thereto, in light of the circumstances under which
they were made) not misleading, except to the extent, but only to the extent,
that such untrue statements or omissions are based solely upon information
regarding such Holder furnished in writing to the Company by such Holder
expressly for use therein, which information was reasonably relied on by the
Company for use therein or to the extent that such information relates to such
Holder or such Holder's proposed method of distribution of Registrable
Securities and was reviewed and expressly approved in writing by such Holder
expressly for use in any Registration Statement, such Prospectus or such form of
Prospectus or in any amendment or supplement thereto. The Company shall notify
the Holders promptly of the institution, threat or assertion of any Proceeding
of which the Company is aware in connection with the transactions contemplated
by this Agreement.

     Section 9.2.  Indemnification by Holders. Each Holder shall, severally and
     -----------   --------------------------
not jointly, indemnify and hold harmless the Company, the directors, officers,
agents and employees, each person who controls the Company (within the meaning
of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the
directors, officers, agents or employees of such controlling persons, to the
fullest extent permitted by applicable law, from and against all Losses (as
determined by a court of competent jurisdiction in a final judgment not subject
to appeal or review) arising solely out of or based solely upon any untrue
statement of a material fact contained in any Registration Statement, any
Prospectus, or any form of Prospectus, or arising solely out of or based solely
upon any untrue statement or omission of a material fact required to be stated
therein or necessary to make the statements therein (in the case of any
Prospectus or form of Prospectus or supplement thereto, in light of the
circumstances under which they were made), not misleading to the extent, but
only to the extent, that such untrue statement or omission is contained or
omitted, as the case may be, in any information so furnished in writing by such
Holder to the Company specifically for inclusion in the Registration Statement
or such Prospectus and that such information was reasonably relied upon by the
Company for use in the Registration Statement, such Prospectus or such form of
Prospectus or to the extent that such information relates to such Holder or such
Holder's proposed method of distribution of Registrable Securities and was
reviewed and expressly approved in writing by such Holder expressly for use in
the Registration Statement, such Prospectus or such form of Prospectus or in any
amendment or supplement thereto. In no event shall the liability of any selling
Holder hereunder be greater in amount than the dollar amount of the net proceeds
received by such Holder upon the sale of the Registrable Securities giving rise
to such indemnification obligation.

                                       19
<PAGE>

     Section 9.3.  Conduct of Indemnification Proceedings.
     -----------   --------------------------------------

     (a)  If any Proceeding shall be brought or asserted against any person
entitled to indemnity hereunder (an "Indemnified Party"), such Indemnified Party
                                     -----------------
promptly shall notify the person from whom indemnity is sought (the

"Indemnifying Party") in writing, and the Indemnifying Party shall assume the
-------------------
defense thereof, including the employment of counsel reasonably satisfactory to
the Indemnified Party and the payment of all fees and expenses incurred in
connection with defense thereof; provided, that the failure of any Indemnified
Party to give such notice shall not relieve the Indemnifying Party of its
obligations or liabilities pursuant to this Agreement, except (and only) to the
extent that it shall be finally determined by a court of competent jurisdiction
(which determination is not subject to appeal or further review) that such
failure shall have proximately and materially adversely prejudiced the
Indemnifying Party.

     (b)  An Indemnified Party shall have the right to employ separate counsel
in any such Proceeding and to participate in the defense thereof, provided,
however, the fees and expenses of such counsel shall be at the expense of such
Indemnified Party or Parties unless: (1) the Indemnifying Party has agreed in
writing to pay such fees and expenses; or (2) the Indemnifying Party shall have
failed promptly to assume the defense of such Proceeding or to employ counsel
reasonably satisfactory to such Indemnified Party in any such Proceeding; or (3)
the named parties to any such Proceeding (including any impleaded parties)
include both such Indemnified Party and the Indemnifying Party, and such
Indemnified Party shall have been advised by counsel that a conflict of interest
is likely to exist if the same counsel were to represent such Indemnified Party
and the Indemnifying Party (in which case, if such Indemnified Party notifies
the Indemnifying Party in writing that it elects to employ separate counsel at
the reasonable expense of the Indemnifying Party, the Indemnifying Party shall
not have the right to assume the defense thereof and such counsel shall be at
the reasonable expense of the Indemnifying Party). The Indemnifying Party shall
not be liable for any settlement of any such Proceeding effected without its
written consent, which consent shall not be unreasonably withheld. No
Indemnifying Party shall, without the prior written consent of the Indemnified
Party, effect any settlement of any pending Proceeding in respect of which any
Indemnified Party is a party, unless such settlement includes an unconditional
release of such Indemnified Party from all liability on claims that are the
subject matter of such Proceeding.

     (c)  All fees and expenses of the Indemnified Party (including reasonable
fees and expenses to the extent incurred in connection with investigating or
preparing to defend such Proceeding in a manner not inconsistent with this
Section) shall be paid to the Indemnified Party, as incurred, within 10 Business
Days of written notice thereof to the Indemnifying Party (regardless of whether
it is ultimately determined that an Indemnified Party is not entitled to
indemnification hereunder; provided, that the Indemnifying Party may require
such Indemnified Party to undertake to reimburse all such fees and expenses to
the extent it is finally judicially determined that such Indemnified Party is
not entitled to indemnification hereunder).

                                       20
<PAGE>

     Section 9.4.  Contribution.
     -----------   ------------

     (a)  If a claim for indemnification under Section 9.1 or 9.2 is unavailable
to an Indemnified Party because of a failure or refusal of a governmental
authority to enforce such indemnification in accordance with its terms (by
reason of public policy or otherwise), then each Indemnifying Party, in lieu of
indemnifying such Indemnified Party, shall contribute to the amount paid or
payable by such Indemnified Party as a result of such Losses, in such proportion
as is appropriate to reflect the relative fault of the Indemnifying Party and
Indemnified Party in connection with the actions, statements or omissions that
resulted in such Losses as well as any other relevant equitable considerations.
The relative fault of such Indemnifying Party and Indemnified Party shall be
determined by reference to, among other things, whether any action in question,
including any untrue or alleged untrue statement of a material fact or omission
or alleged omission of a material fact, has been taken or made by, or relates to
information supplied by, such Indemnifying Party or Indemnified Party, and the
parties' relative intent, knowledge, access to information and opportunity to
correct or prevent such action, statement or omission. The amount paid or
payable by a party as a result of any Losses shall be deemed to include, subject
to the limitations set forth herein, any reasonable attorneys' or other
reasonable fees or expenses incurred by such party in connection with any
Proceeding to the extent such party would have been indemnified for such fees or
expenses if the indemnification provided for in this Section was available to
such party in accordance with its terms. In no event shall the liability of any
selling Holder hereunder be greater in amount than the dollar amount of the net
proceeds received by such Holder upon the sale of the Registrable Securities
giving rise to such indemnification obligation.

     (b)  The parties hereto agree that it would not be just and equitable if
contribution pursuant to this Section 9 were determined by pro rata allocation
or by any other method of allocation that does not take into account the
equitable considerations referred to in the immediately preceding paragraph.
Notwithstanding the provisions of this Section 9, no Holder shall be required to
contribute, in the aggregate, any amount in excess of the amount by which the
proceeds actually received by such Holder from the sale of the Registrable
Securities subject to the Proceeding exceeds the amount of any damages that such
Holder has otherwise been required to pay by reason of such untrue or alleged
untrue statement or omission or alleged omission. No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation.

     (c)  The indemnity and contribution agreements contained in this Section 9
are in addition to any liability that the Indemnifying Parties may have to the
Indemnified Parties.

     Section 9.5.  Rule 144. Following the IPO, the Company covenants that:
     -----------   --------

     (a)  it shall file the reports required to be filed by the Company under
the Securities Act and the Exchange Act, so as to enable the Holders to sell
Registrable Securities pursuant to Rule 144 under the Securities Act;

                                       21
<PAGE>

     (b)  it shall cooperate with any Holder in connection with any sale,
transfer or other disposition by such Holder of any Registrable Securities
pursuant to Rule 144 under the Securities Act;

     (c)  it shall take such action as any Holder may reasonably request, all to
the extent required from time to time to enable such Holder to sell its Common
Stock without registration under the Securities Act within the limitation of the
exemptions provided by Rule 144 promulgated under the Securities Act, including
providing any legal opinions; and

     (d)  upon the request of any Holder, it shall deliver to such Holder a
written certification of a duly authorized officer as to whether it has complied
with such requirements.

     Section 10.  Restrictions on Transfer; Certain Covenants.
     ------------ -------------------------------------------

     Section 10.1.  Restrictions on Transfer by Stockholders.
     ------------   ----------------------------------------

     (a) Initial Lock-up.  As a condition to, and in consideration of, the
         ---------------
issuance by the Company to the Stockholders of the Shares pursuant to the Stock
Subscription Agreement, each Stockholder agrees that it will not, directly or
indirectly, without the prior written consent of the Company, offer, sell,
contract to sell, pledge or otherwise dispose of, or enter into any transaction
which is designed to, or might reasonably be expected to, result in the
disposition (whether by actual disposition or effective economic disposition due
to cash settlement or otherwise) of any right, title or interest in any of the
Restricted Shares, including, without limitation, by filing (or participating in
the filing of) a registration statement with the Securities and Exchange
Commission in respect of, or establishing or increasing a put equivalent
position within the meaning of Section 16 of the Securities Exchange Act of
1934, as amended, and the rules and regulations of the Securities and Exchange
Commission promulgated thereunder, with respect to, any of the Restricted
Shares.  Notwithstanding the foregoing, each Stockholder may, without violating
the provisions hereof, transfer all or any part of the Restricted Securities to
any Permitted Stockholder Affiliate, and may pledge, hypothecate or engage in
another similar financing transaction of any Restricted Securities (including,
without limitation, Repos (as defined below), if conducted in accordance with
the provisions of Section 10.1(f) hereof), but not including short sales or
transactions involving any hedging of a Stockholder's Shares or use of any puts,
calls or other derivatives in connection with any of a Stockholder's Shares
(other than in connection with Repos conducted in accordance with the provisions
of Section 10.1(f) hereof) so long as (i) the transferring Stockholder
continues, prior to default thereunder, to retain record and beneficial title
(in connection with transactions other than Repo transactions and other than
transfers to any Permitted Stockholder Affiliates) to, and have the sole and
exclusive authority and right to vote the shares subject to, any such pledge,
hypothecation or other financing transaction and (ii) if effected or entered
into prior to the expiration of the "distribution compliance period" (as defined
in Regulation S), the provisions of such transaction complies with the
provisions of Regulation S.  In addition, each Stockholder may, without
violating the provisions hereof, tender or exchange all or any part of the
Restricted Shares into any tender or exchange offer for Common Stock conducted
by the Company or any third party; provided, that if such tender or exchange
                                   --------
offer is for less than all of the then outstanding shares of Common

                                       22
<PAGE>

Stock, upon consummation of such tender or exchange offer, each Stockholder
shall be deemed to have first tendered or exchanged and sold all of the
Unrestricted Shares then held by such Stockholder prior to selling any
Restricted Shares, with the result that any Shares tendered or exchanged by a
Stockholder in excess of such number of Unrestricted Shares and not purchased in
the tender or exchange offer shall continue as Restricted Shares for all
purposes hereunder.

     (b)(i) Release from Lock-up. For purposes hereof, all of the Shares shall
            --------------------
constitute "Restricted Shares" until the First Release Date. After the First
            -----------------
Release Date, and each Release Date thereafter, the number of "Restricted
Shares" shall be determined as set forth below. For purposes hereof, the "First
                                                                          -----
Release Date" shall be the first anniversary of the last to occur of (A) the
------------
closing of the transactions contemplated by the Stock Subscription Agreement and
(B) the first to occur of (1) the Launch Date and (2) the date that is six (6)
months from the date hereof, and each subsequent "Release Date" shall be the
                                                  ------------
dates that are the first, second, third and fourth anniversaries of the First
Release Date.

       Release Date           Shares Restricted
       ------------           -----------------

     First Release Date          83.33%
     Second Release Date         41.67%
     Third Release Date          25.00%
     Fourth Release Date          8.33%
     Fifth Release Date          0.00%

     (ii) Notwithstanding the foregoing, the number of Restricted Shares shall
be deemed to be zero (0) upon the first to occur of (A) a Change in Control and
(B) the date on which Itau becomes entitled to terminate, and does so terminate,
the Marketing Agreement, including, without limitation, because of an AOLA
Change of Control (as such term is defined in the Marketing Agreement);
provided, that if the Company timely challenges any such termination in
--------
accordance with the provisions of the Marketing Agreement, the provisions of
this paragraph (b)(ii) shall not be effective unless and until there is a final
arbitration award issued pursuant to Section 13 of the Marketing Agreement, that
Itau was in fact entitled to terminate such Agreement.   In addition, the number
of Restricted Shares shall be deemed to be zero (0) if, at any time after the
Third Release Date, the Company or AOLB terminates the Marketing Agreement and
Itau makes payment in full in cash of the Termination Fee required to be made
pursuant to Section 11.2.3(c) of the Marketing Agreement.

     (c)  Certain Definitions.  The number of Shares in excess of the number of
          -------------------
Restricted Shares are referred to herein as "Unrestricted Shares."
                                             -------------------

     (d)   Additional Securities.  For purposes hereof, if after the date hereof
           ---------------------
the Company subdivides or combines its Common Stock shares or issues by way of
stock dividend, stock distribution or stock split, or in connection with a
combination of shares, recapitalization, merger, consolidation or reorganization
or otherwise, the percentages set forth above shall be derived by calculating
the percentage which the Restricted Shares as so subdivided, combined or
reclassified represent in relation to the number of Shares initially issued to
the Stockholders

                                       23
<PAGE>

assuming for such purpose that the number of Shares initially issued had been
subdivided, combined or reclassified in the same manner as the Restricted
Shares.

(e)    Additional Restrictions.  Notwithstanding anything to the contrary
       -----------------------
contained herein, all sales of Shares by the Stockholders, regardless of whether
or not such Shares have been registered for resale in accordance with the
provisions of this Agreement, shall be subject to the following restrictions:

       (i) At least five business days prior to any Sale (as defined below) of
any Common Stock by a Stockholder, including, without limitation, any Large
Trade (as defined below), such Stockholder will advise the Company in writing of
the dates on which such disposition is expected to commence and terminate, the
number of shares of Common Stock expected to be sold, the method of disposition
and such other information as the Company may reasonably request in order to
ensure such Stockholder's compliance with the provisions of this Section. Each
Stockholder agrees to notify any broker/dealer in writing of the restrictions on
Sale contained in this Agreement and provide the Company a copy of such notice.

       (ii) No Holder may, directly or indirectly, offer, sell, contract to
sell, pledge or otherwise dispose of, or enter into any transaction which is
designed to, or might reasonably be expected to, result in the disposition
(whether by actual disposition or effective economic disposition due to cash
settlement or otherwise) of, shares of Common Stock (collectively, a "Sale"), in
                                                                      ----
any event in a transaction recorded on the Nasdaq National Market (or any other
market on which the Common Stock is then listed for trading) (a "Nasdaq
                                                                 ------
Transaction") which, when aggregated with all other shares Sold by Holders in a
-----------
Nasdaq Transaction on the same day, exceeds on such single trading day, 10.0% of
the average trading volume of the Common Stock during the 20 trading-day period
ending on the trading day prior to the date of such Sale (the "Average Trading
                                                               ---------------
Volume"). The restrictions contained in the preceding sentence shall not apply
------
to any (i) Sale in which a Holder sells, in a single block transaction, shares
of Common Stock which exceed in number 10.0% of the Average Trading Volume in
which the sales price is at least 95% of the Closing Price (a "Large Trade"),
                                                               -----------
(ii) series of Sales in a single trading day in which a Holder sells shares of
Common Stock which exceed in number 10.0% of the Average Trading Volume ("Serial
                                                                          ------
Large Trade") in which the sales price at which all of such Sales are
-----------
consummated is at least 95% of the Closing Price, or (iii) in connection with
any Sales effected pursuant to an Underwritten Offering of Shares conducted by
means of a firm commitment underwriting effected by a nationally or
internationally recognized investment banking firm. Notwithstanding the
foregoing: (i) no more than one Large Trade may be consummated on any two (2) or
more trading days in any period of ten (10) consecutive trading days unless such
Large Trade (other than the first Large Trade in such period) is one in which
the sales price is at least 100% of the Closing Price and (ii) no more than one
Serial Large Trade may be effected on any two (2) or more trading days in any
period of ten (10) consecutive trading days unless the sales prices at which all
Sales constituting any such Serial Large Trade (other than such Sales on the
first trading day in such period on which a Serial Large Trade in made) is at
least 100% of the Closing Price. In addition, notwithstanding the foregoing and
as an additional restriction, no Holder may effect any Nasdaq Transaction if the
shares to be Sold in such Nasdaq Transaction, when aggregated with all other
shares Sold by Holders in Nasdaq Transactions in the prior 90

                                       24
<PAGE>

days, exceeds (i) during the first two years after the date hereof, such number
of unregistered shares of capital stock of an issuer which may be sold by a
single holder in any 3 month period pursuant to the provisions of Rule 144(e)
promulgated under the Securities Act, and (ii) thereafter, the greater of (1)
1.0% of the aggregate number of shares of Common Stock outstanding (calculated
on an as converted basis) as of the start of such 90-day period and (2) the
number of unregistered shares of capital stock of an issuer which may be sold by
a single holder in any 3 month period pursuant to the provisions of Rule 144(e).

       (iii) Notwithstanding the foregoing, each Holder may, without complying
with the restrictions set forth in subsection (ii) hereof, sell all or any part
of the Unrestricted Shares in a private placement or other transaction not
involving any public offering or public sale to a transferee reasonably
acceptable to the Company (with the determination of such acceptability not to
be withheld or delayed unreasonably) so long as the transferee, as a condition
to such transfer, delivers to the Company a written instrument in form and
substance reasonably satisfactory to the Company, by which such transferee
agrees to be bound by the restrictions contained in this Section 10.1 and in the
Stock Subscription Agreement to the same extent as if such transferee had signed
this Agreement.

  (f)  Repurchase Transactions.  Notwithstanding the restrictions contained in
       -----------------------
this Section 10.1, each Stockholder and each Permitted Stockholder Affiliate may
effect repurchase transactions ("Repos") with respect to all or any part of the
                                 -----
Shares so long as such Stockholder or Permitted Stockholder Affiliate, as
applicable, complies with the following:

       (i) The Stockholder or Permitted Stockholder Affiliate shall consummate
Repo transactions only (A) with such counterparties as may be specified on a
list of acceptable broker/dealer or other financial institutions, as such list
may be amended by agreement of the Company and the Stockholders from time to
time and (B) after the Company has been provided a copy of any repurchase
agreement or other instrument which a Stockholder proposes to use in connection
with any contemplated Repo transaction and has determined, in its reasonable
judgment, that such instrument or agreement complies in all material respects
with the provisions of this Section 10.1(f); provided, that if the Company does
not object to any proposed contract or agreement within ten (10) Business Days
following its receipt of a copy thereof, such instrument or agreement shall be
deemed approved by the Company. Any dispute as to whether or not any such
proposed contract or agreement complies in all material respects with the
provisions of this Section 10.1(f) shall be resolved by arbitration pursuant to
the provisions of Section 12.11 hereof; provided, that such arbitration shall be
held pursuant to the procedures for a forty-five day arbitration set forth in
Section 13.4 of the Marketing Agreement;

       (ii) No more than 10 Repo transactions in the aggregate may be in effect
with not more than 5 counterparties in the aggregate, in any event at any one
time (with such limitations applying in the aggregate, not per Stockholder or
Permitted Stockholder Affiliate);

       (iii) The counterparty to a Repo must agree in the applicable repurchase
agreement (A) to comply with the provisions of this Section 10.1 and the
restrictions contained in the Stock Subscription Agreement with respect to all
Shares subject to such repurchase

                                       25
<PAGE>

agreement, and to inform any transferee of any of such Shares in writing of the
existence and exact nature of such restrictions and require any transferee to
agree in writing to be bound by such restrictions, (B) to hold all such shares
free and clear of all liens, claims and encumbrances of any kind or nature,
other than those securing the Holder's obligations under such repurchase
agreement, (C) not assign or transfer the repurchase agreement or any of its
rights, duties or obligations thereunder to any Person other than an Affiliate
of such counterparty who agrees in writing to be bound by all of the terms and
conditions of such repurchase agreement, the provisions of this Section 10.1 and
the restrictions contained in the Stock Subscription Agreement with respect to
all Shares subject to such repurchase agreement, and prior to any such
assignment or transfer, identify any proposed assignee or transferee of any of
the Shares subject to any repurchase agreement or any proposed transferee or
assignee of any repurchase agreement or any of the counterparty's duties or
obligations thereunder and include such obligation in any Repo agreement, (D)
that the Company shall have a right to approve any proposed transferee of Shares
or assignee of the repurchase agreement or any of its rights, duties or
obligations thereunder, including, without limitation, any Affiliate of such
counterparty, such approval not with be withheld or delayed unreasonably, and
(E) to make the Company a third party beneficiary entitled to enforce such
agreements against the counterparty; and

       (iv) The Stockholder must, as part of each Repo transaction, (A) prior to
default thereunder, retain the sole and exclusive authority and right to vote
the shares subject to such Repo transaction, (B) if such Repo transaction is
effected prior to the expiration of the "distribution compliance period" (as
defined in Regulation S), certify to the Company that such Repo transaction
complies with the provisions of Regulation S and deliver to the Company an
opinion of counsel, in form and substance, and from counsel, reasonably
acceptable to the Company, that such Repo transaction does so comply, (C) retain
the risk of economic loss on the Shares in connection with any Repo transaction
and (D) agree on an exercise price for the put and call for the applicable
Common Stock (or the repurchase price, settlement price or equivalent price term
in any similar arrangement designed to effect the transfer of such Common Stock
back to the Stockholder at the conclusion or earlier termination of the Repo
transaction) that is at least equal to the purchase price for the Common Stock
at which such Repo transaction was effected, which purchase price shall, unless
the Company shall otherwise consent, be not less than the last reported sales
price therefor as reported on the Nasdaq National Market (or such other market
on which the Common Stock is then listed for trading and which has the then
largest daily trading volume for the Common Stock); provided, that the purchase,
repurchase and exercise price for the initial Repo transactions effected by the
Stockholders after consummation of the IPO may, if such Repo transactions are
consummated within 30 days of the consummation of the IPO, be not less than the
initial public offering price at which the Common Stock was sold to the public
in connection with the IPO; provided, that if such initial Repo transactions are
not consummated within 30 days of the consummation of the IPO despite the
Purchasers' use of all commercially reasonable efforts to so consummate such
initial Repo transactions, such 30 day period may, with the consent of the
Company, which shall not be withheld or delayed unreasonably, be extended for an
additional 30 day period; and provided further, however, that the aggregate
number of Shares as to which the provisions of the preceding proviso shall be
applicable shall not exceed the aggregate number of Shares issued to the
Purchasers pursuant to the Stock Subscription Agreement.

                                       26
<PAGE>

     Each Stockholder hereby covenants that it will not settle any Repo
transactions to which it may be party at any time by any other means other than
by reacquiring record and beneficial title to the Shares that were the subject
of such Repo transaction. If either Stockholder (i) fails to timely settle any
Repo transaction by reacquiring record and beneficial title to the Shares that
were the subject of such Repo transaction, (ii) modifies the price for any put
and call or similar arrangement in connection with any Repo transaction to a
price below the purchase price for the Common Stock at which such Repo
transaction was effected, or (iii) renews or extends any Repo transaction at a
price below the last reported sales price therefor as reported on the Nasdaq
National Market (or such other market on which the Common Stock is then listed
for trading and which has the then largest daily trading volume for the Common
Stock), in any event as of the effective date or any renewal or extension, as
applicable, such failure, modification, renewal or extension shall be deemed a
breach of this Agreement, and, in addition to any remedies which the Company or
any other affected party may seek as a consequence of such breach, the
provisions of this Section 10.1(f) shall be deemed to have been terminated and
each Stockholder's right to effect additional Repo transactions from and after
such time in respect of any Restricted Shares, including, without limitation,
any renewals or extensions of then existing Repo transactions, shall immediately
terminate without the requirement of any notice from or other action on the part
of the Company The Company and the Stockholders shall consult with each other
regarding any press releases or other disclosures, including, without
limitation, any disclosures required pursuant to the provisions of the
Securities Act or the Exchange Act, with respect to each Repo transaction. The
Stockholders shall, and hereby agree to, indemnify and hold the Company harmless
from and against any and all Losses to the extent they arise out of or in
connection with any Repo transaction except to the extent such Losses arise out
of the Company's disclosure in any filing made by the Company under the
Securities Act or the Exchange Act of the terms of any Repo transaction effected
by a Stockholder in a manner which is inaccurate and different in any material
respect from any description provided in writing by the Stockholders of any such
Repo transaction for use in such filing.

     Section 10.2. Nominee to the Company's Board; Advisory Committee.
     ------------  --------------------------------------------------

     (a) The Company will take all action (if any) necessary in accordance with
the Delaware General Corporation Law, the Company's Restated Certificate of
Incorporation, as amended, and By-laws, to increase by one (1) the total number
of directors constituting the entire the Board of Directors of the Company and
to appoint Itau's President and Chief Executive Officer as a Class A Director to
fill such vacancy and to keep such vacancy available for the person nominated as
described below.  The Company further agrees that for the two years following
the Effective Date and thereafter as long as (i) the Stockholders and their
Permitted Stockholder Affiliates together continue to hold at least 5/12ths of
the Shares and (ii) the Marketing Agreement remains in full force and effect, to
continue to nominate one person selected by the Stockholders as a director of
the Company at each annual or special meeting of the Company stockholders at
which directors are elected or pursuant to any written consents involving the
election of directors.  Such person shall be either the then current President
or Chief Executive Officer of Itau for so long as the Board of Directors of the
Company includes (i) either the Chief Executive Officer or the Chief Operating
Officer of AOL and (ii) a person who is

                                       27
<PAGE>

a nominee of ODC, and thereafter may include one of the then current Senior Vice
Presidents who reports directly to either the President or the Chief Executive
Officer of Itau. Notwithstanding the foregoing, if any such nominee resigns in
mid-term for any reason other than death, serious illness or other incapacity or
separation of his or her employment with the Itau or removal from the qualifying
position set forth above, the Stockholders shall not be entitled to nominate any
replacement until the next annual meeting of the Company at which directors are
elected, and the Board of Directors of the Company may fill such vacancy
temporarily in accordance with the provisions of the Company's by-laws.

     (b) The Company will take all action (if any) necessary in accordance with
the Delaware General Corporation Law, the Company's Restated Certificate of
Incorporation, as amended, and By-laws, to appoint an Advisory Committee and to
appoint the person nominated pursuant to Section 10.2(a) as a member of such
Advisory Committee.

     (c) Each of AOL and ODC agrees to take all necessary action, including
voting all of the Common Stock and Common Stock Equivalents (as hereinafter
defined) of the Company now owned or hereafter acquired by such party (and
attend, in person or by proxy, all meetings of stockholders called for the
purpose of electing directors) and executing any necessary consents, and the
Company agrees to take all actions (including, but not limited to the nomination
and recommendation to its shareholders of the specified persons) to cause and
maintain the election of the person nominated pursuant to Section 10.2(a) to the
Board of Directors of the Company and the Advisory Committee in accordance with
the provisions of this Section 10.2.

     Section 10.3 Right of Participation in Sales by AOL and ODC.
     ------------ ----------------------------------------------

     (a) If at any time AOL and/or ODC wishes to sell, transfer, assign or
otherwise dispose of any shares of Common Stock or any securities of the Company
convertible into, exercisable for or exchangeable for shares of Common Stock
("Common Stock Equivalents") to any Person (the "Purchaser") in a single
--------------------------                       ---------
transaction or series of transactions which would result in the transfer, either
individually or when combined with all other sales, transfers and other
dispositions of Common Stock and Common Stock Equivalents by the transferring
party in the immediately preceding 12 month period, of more than fifteen percent
(15%) of the shares of Common Stock of the Company held by AOL or ODC, as
applicable, immediately following consummation of the IPO and the transactions
contemplated hereby (as adjusted to reflect any stock splits, stock dividends,
reverse stock splits, recapitalizations and similar capital events), in each
case calculated on an as converted, fully diluted basis, it shall so notify the
Stockholders (the "Sale Notice"), and each Stockholder shall have the right to
                   -----------
require, as a condition to such sale or disposition, that the Purchaser purchase
from such Stockholder at the same price per share and on the same terms and
conditions as involved in such sale or disposition by AOL and/or ODC, as
applicable, the same percentage of the Available Shares then held by such
Stockholder as such sale or disposition represents with respect to the aggregate
number of shares of Common Stock and Common Stock Equivalents owned by whichever
of AOL and ODC is selling, calculated on an as converted, fully diluted basis
(the "Aggregate Stockholdings"), or, if both are selling, the same percentage as
      -----------------------
such sale or disposition represents with respect to the Aggregate

                                       28
<PAGE>

Stockholdings owned by whichever of AOL and ODC that is selling the greatest
percentage of its Aggregate Stockholdings; provided, that if the right to
                                           --------
participate as provided in this Section accrues only after a combination of
transactions which together exceed such 15% threshold, then each Stockholder
shall have the right to require, as a condition to such sale or disposition,
that the Purchaser purchase from such Stockholder the same percentage of the
Available Shares then held by such Stockholder as such combined sales or
dispositions represent with respect to the Aggregate Stockholdings owned by
whichever of AOL and ODC is selling as of the first of such sales, or, if both
are selling, the same percentage as such combined sales or dispositions
represent with respect to the Aggregate Stockholdings owned by whichever of AOL
and ODC has sold the greatest percentage of its Aggregate Stockholdings as of
the first of such sales. If a Stockholder wishes so to participate in any such
sale or disposition it shall notify AOL and/or ODC, as applicable, of such
intention as soon as reasonably practicable after receipt of the Sale Notice,
and in all events within fifteen (15) days after receipt thereof, which
communication shall be delivered by hand or mailed to AOL and/or ODC, as
applicable, at the address set forth in Section 12.2 below. AOL and/or ODC, as
applicable, and the Stockholder(s) shall sell to the Purchaser all, or at the
option of the Purchaser, any part of the Common Stock proposed to be sold by
them at not less than the price and upon other terms and conditions, if any, not
more favorable to the Purchaser than those originally offered; provided,
however, that any purchase of less than all of such Common -------- -------
Stock by the Purchaser shall be made from AOL and/or ODC and the Stockholder pro
rata based upon the Available Shares held by the Stockholder(s) timely electing
to participate in such sales and the Aggregate Stockholdings of AOL and/or ODC,
as applicable. AOL and ODC, as applicable, shall each use its best efforts to
obtain the agreement of the Purchaser to the participation of the Stockholders
in the contemplated sale, and shall not sell any Common Stock to such Purchaser
if such Purchaser declines to permit the Stockholders to participate pursuant to
the terms of this Section 10.3.

     (b) Notwithstanding the foregoing, the provisions of this Section 10.3
shall not apply to:  (i) any transfer of Common Stock or Common Stock
Equivalents by gift; (ii) any transfer of Common Stock or Common Stock
Equivalents to any Person, not less than seventy-five percent (75%) of the
outstanding equity securities and Voting Power of which is held by the
transferring party or which holds not less than seventy-five percent (75%) of
the outstanding equity securities and Voting Power of the transferring party;
(iii) any sale of Common Stock in a public offering pursuant to a registration
statement filed with the Commission; (iv) any transfer of Common Stock or Common
Stock Equivalents by ODC to AOL at any time after the consummation of the IPO,
(v) any transfer of Common Stock or Common Stock Equivalents by ODC to any
member of the Cisneros Family (as such term is defined in the Restated
Certificate of Incorporation) and (vi) any bona-fide pledge, hypothecation or
other similar financing transaction in which the transferring party continues to
have the sole and exclusive authority and right to vote the shares subject to
such pledge, hypothecation or other financing transaction; provided that, in the
case of transfers effected pursuant to clauses (i), (ii) or (v) above, such
Person agrees to be bound by the provisions of this Section 10.3 with respect to
the Common Stock and Common Stock Equivalents so transferred.

     (c) The provisions of this Section 10.3 shall be of no further force and
effect from and after the first to occur of (i) the date on which the Marketing
Agreement is terminated in

                                       29
<PAGE>

accordance with its terms other than by reason of a breach by the Company and/or
AOLB of the provisions thereof and (ii) the date that the aggregate number of
shares of Common Stock then held by the Stockholders and their Permitted
Stockholder Affiliates represents less than 5/24ths of the Shares (as adjusted
for stock splits, stock dividends, reclassifications, recapitalizations or other
similar events); provided, that if the Company and/or AOLB terminates the
                 --------
Marketing Agreement and the Stockholders timely challenge such termination in
accordance with the terms of the Marketing Agreement, the provisions of clause
(i) of this paragraph (c) shall not be effective unless and until there is a
final arbitration award issued pursuant to Section 13 of the Marketing Agreement
that the Company and/or AOLB, as applicable, was in fact entitled to terminate
such Agreement.

     Section 10.4.  Noncompetition Provisions   (a) Each of AOL and ODC agrees
     -------------  -------------------------
that, for so long as the Stockholders and their Permitted Stockholder Affiliates
collectively hold shares of Common Stock representing not less than 6% of the
outstanding capital stock of the Company, calculated on a fully diluted basis,
the Stockholders shall be entitled to enforce the noncompetition obligations of
AOL and ODC (the "Existing Stockholders") contained in Sections 4.1 and 4.2 of
                  ---------------------
the Stockholders' Agreement, dated as of _________, 2000, by and between the
Company, AOL and ODC (the "Existing Stockholders' Agreement"), on the terms and
                           --------------------------------
conditions set forth therein as if the Stockholders were parties thereto;
provided, that the provisions of the Existing Stockholders' Agreement that are
--------
effective only so long as each of AOL and ODC owns 20% of the issued and
outstanding Voting Stock, as such percentage is adjusted pursuant to the
Existing Stockholders' Agreement,  shall be enforceable against AOL or ODC, as
the case may be, so long as such party owns 20% of the issued and outstanding
Voting Stock, as such percentage is adjusted pursuant to the Existing
Stockholders' Agreement.

     (b) Each Stockholder covenants and agrees to be bound by and comply with
the provisions of Sections 4.1 and 4.2 of the Existing Stockholders' Agreement
that are applicable to ODC thereunder as if such Stockholder were a party
thereto, except that (i) such covenant and agreement shall expire at such time
as the Stockholders and their Permitted Stockholder Affiliates collectively own
less than six percent (6%) of the outstanding capital stock of the Company,
calculated on a fully diluted basis, (ii) such covenant and agreement shall not
be enforceable by any Existing Stockholder against whom the Existing
Stockholders' Agreement is not enforceable by the Stockholders, and (iii) all
references to "Cisneros Family Members," "RSL-LA" and "GLA" shall not apply with
respect to the Stockholders.

     (c) Notwithstanding anything to the contrary contained herein, the
provisions of this Section 10.4 shall expire on the first to occur of (i) the
date on which the Marketing Agreement is terminated in accordance with its terms
and (ii) the tenth anniversary of the date hereof.  In addition, the parties
hereto agree that the provisions of Section 4.2(a) of the Existing Stockholders'
Agreement, as they apply to the Stockholders, shall be applied so that (i) the
repurchase obligations contained therein that are triggered upon a breach by AOL
or ODC shall apply, with respect to the Shares held by the Stockholders and
their Permitted Stockholder Affiliates, to whichever of AOL or ODC as shall have
breached the provisions of Section 4.1 of the Existing Stockholders' Agreement
and (ii) AOL shall have the right to repurchase the Shares held by the
Stockholders and any Permitted Stockholder Affiliates upon any breach by either
or

                                       30
<PAGE>

both of the Stockholders, or any Permitted Stockholder Affiliate then holding
any Shares, of the provisions of said Section 4.1.

     (d) For the avoidance of doubt, with respect to PC Access Services, TV
Access Services and Wireless Access Services (as such terms are defined in the
Existing Stockholders' Agreement), neither Stockholder shall be deemed to be
engaging in a Restricted Activity (as such term is defined in the Existing
Stockholders' Agreement), unless (i) a Stockholder or any Permitted Stockholder
Affiliate then holding Shares is a Significant Competitor (as such term is
defined in the Existing Stockholders' Agreement), or the Stockholders and the
Permitted Stockholder Affiliates then holding Shares are an Aggregated
Significant Competitor (as such term is defined in the Existing Stockholders'
Agreement) or (ii)(A) a Stockholder has, or the Stockholders' and/or the
Permitted Stockholder Affiliates then holding Shares collectively have, a direct
and/or indirect ownership interest in any applicable Person or Persons of at
least thirty five percent (35%) and (B) such Person is a Significant Competitor
or a Stockholder together with the other Stockholder and the Permitted
Stockholder Affiliates then holding Shares and/or such other Person or Persons
are an Aggregated Significant Competitor.

     Section 10.5  Participation in Registrations by AOL and ODC. Each of AOL
     ------------  ---------------------------------------------
and ODC agrees that the "piggy back" registration rights granted to the
Stockholders pursuant to Section 2.1 hereof shall be applicable to any demand or
Form S-3 registrations to be conducted by the Company on either of their behalf
pursuant to the provisions of the Registration Rights Agreement, dated as of
_______, 2000, by and between the Company, AOL and ODC, subject to the
provisions of Section 2.3 hereof.

     Section 10.6  Right of Participation in Sales by the Company  .
     ------------  ----------------------------------------------

     (a) Right of Participation.  Except as provided in Section 10.6(f) of this
         ----------------------
Agreement, the Company shall not issue, sell or exchange, agree or obligate
itself to issue, sell or exchange, or reserve or set aside for issuance, sale or
exchange (i) any debt or equity security of the Company (other than debt with no
equity feature) including without limitation, any debt security which by its
terms is convertible into or exchangeable for any equity security of the
Company, (iii) any security of the Company that is a combination of debt and
equity, or (iv) any option, warrant or other right to subscribe for, purchase or
otherwise acquire any such equity, debt or combination security of the Company,
in any event solely for cash or cash equivalents, to any Person including any
Existing Stockholder or any Affiliate thereof (the "Offered Securities"), unless
                                                    ------------------
in each case the Company shall have first offered to each Stockholder that
portion of such securities as the number of Shares then held by such Stockholder
bears to the total number of shares of Common Stock (including all shares of
capital stock convertible into Common Stock, on a fully-diluted basis) of the
Company then outstanding (each Stockholder's "Pro Rata Amount," and
                                              ----------------
collectively, the "Aggregate Pro Rata Amount"), at a cash price and on such
                   -------------------------
other terms as shall have been specified by the Company in writing delivered to
such Stockholder (the "Offer"), which Offer by its terms shall remain open and
                       -----
irrevocable for a period of ten (10) Business Days from receipt of the offer.

                                       31
<PAGE>

     (b)  Notice of Acceptance.  Notice of each Stockholder's intention to
          --------------------
accept, in whole or in part, any Offer made pursuant to Section 10.6(a) shall be
evidenced by a writing signed by such Stockholder and delivered to the Company
prior to the end of the 10 Business Day period of such Offer, setting forth such
of the Stockholder's Pro Rata Amount as such Stockholder elects to purchase (the
"Notice of Acceptance").
 --------------------

     (c)  Conditions to Acceptances and Purchase  .
          --------------------------------------

          (i) Permitted Sales.  The Company shall have ninety (90) days from the
              ---------------
expiration of the period set forth in Section 10.6(a) to close the sale of all
or any part of such Offered Securities as to which a Notice of Acceptance has
not been given by the Stockholders, but only for cash at the per share price
and/or interest rates, as applicable, and otherwise in all respects upon terms
and conditions which are no less favorable, in the aggregate, to the Company
than those set forth in the Offer.  If the number of Offered Securities to be
sold is reduced in any material amount, the Company shall again provide the
Stockholders with notice pursuant to the provisions of Section 10.6(a),
regardless of whether Notices of Acceptance previously have been delivered, and
the Purchasers shall have an additional five (5) Business Day period in which to
submit a Notice of Acceptance, if one has not been previously submitted, or
withdraw a previously submitted Notice of Acceptance, in any event with respect
to such reduced amount of Offered Securities.

          (ii) Closing.  Upon the closing, which shall include full payment to
               -------
the Company, of the sale to another Person or Persons of all or less than all
the Offered Securities, the Stockholders shall purchase from the Company, and
the Company shall sell to the Stockholders, the number of Offered Securities
specified in the Notices of Acceptance.  The purchase by the Stockholders of any
Offered Securities is subject in all cases to the preparation, execution and
delivery by the Company and the Stockholders of a purchase agreement relating to
such Offered Securities reasonably satisfactory in form and substance to the
Stockholders and their counsel and containing terms and conditions no less
favorable, in the aggregate, than those contained in the similar purchase
agreements entered into with the other purchasers of Offered Securities.

     (d)  Further Sale  .  In each case, any Offered Securities not purchased by
          ------------
the Stockholders or other Person or Persons in accordance with Section 6(c) may
not be sold or otherwise disposed of until they are again offered to the
Stockholders under the procedures specified in Sections 6(a), 6(b) and 6(c).

     (e)  Termination of Right of Participation.  The rights of the Stockholders
          -------------------------------------
under this Section 10.6 shall terminate immediately upon the first to occur of
(i) the date on which the Marketing Agreement is terminated in accordance with
its terms for any reason other than a breach by the Company and/or AOLB of the
provisions thereof and (ii) the date that is the fourth (4th) anniversary of the
consummation of the IPO, regardless of whether or not the Company is then
subject to the provisions of the Exchange Act with respect to any of its equity
or debt securities; provided, that if the Company and/or AOLB terminates the
                    --------
Marketing Agreement and the Stockholders timely challenge such termination in
accordance with the terms of the

                                       32
<PAGE>

Marketing Agreement, the provisions of clause (i) of this paragraph (e) shall
not be effective unless and until there is a final arbitration award issued
pursuant to Section 13 of the Marketing Agreement that the Company and/or AOLB,
as applicable, was in fact entitled to terminate such Agreement

     (f)  Exception.  The rights of the Stockholders under this Section 10.6
          ---------
shall not apply to:

          (i) Common Stock issued as a stock dividend to holders of Common Stock
or upon any subdivision or combination of shares of Common Stock,

          (ii) shares of Preferred Stock issued as a dividend to holders of
Preferred Stock upon any subdivision or combination of shares of such series of
Preferred Stock,

          (iii) shares of Common Stock issued or issuable pursuant to options,
warrants or other rights (as adjusted for any stock dividends, combinations,
splits, recapitalizations and the like) issued to employees, officers or
directors of, or consultants or advisors (other than AOL, ODC or their
Affiliates) to the Corporation or any subsidiary pursuant to stock purchase or
stock option plans or other arrangements that are approved by the Board of
Directors,

          (iv) Common Stock offered to the public pursuant to a registration
statement filed under the Securities Act, and

          (v) the issuance of Common Stock issued upon the exercise of options
or warrants to purchase Common Stock outstanding as of the date of execution of
the Stock Subscription Agreement.

     (g) Waiver.  The rights of the Stockholders under this Section 10.6 may be
         ------
waived in any instance, on behalf of all of the Stockholders, prospectively or
retroactively, by the written agreement of the holders of not less than sixty
six and two-thirds percent (66-2/3%) of the Common Stock owned beneficially or
of record by the Stockholders and or their Permitted Stockholder Affiliates.

     Section 10.7  Repatriation.  Each Stockholder covenants and agrees to use
     ------------  ------------
all commercially reasonable efforts, as and when requested by the Company, to
assist the Company in obtaining all required consents and approvals, if any, of
the Brazilian central bank and other Brazilian regulatory authorities in
connection with any contemplated repatriation or other movement or transfer of
funds from Brazil to a jurisdiction outside of Brazil in connection with the
transactions contemplated hereby.  Any such assistance shall be provided without
cost or expense to the Stockholders, and each may require, as a condition to
providing such assistance, that the Company agree to indemnify and hold such
Stockholder harmless from and against any liability that may arise as a
consequence of the Stockholder providing such assistance other than as a result
of the Stockholder's illegal acts, gross negligence or bad faith.

                                       33
<PAGE>

     Section 11.  Term of Registration Rights
     -----------  ---------------------------

     The rights of Holders with respect to the registration rights granted
pursuant to this Agreement shall remain in effect, subject to the terms hereof,
so long as there are Restricted Securities or Registrable Securities or
securities which are directly or indirectly convertible or exchangeable for
Restricted Securities or Registrable Securities issued and outstanding.

     Section 12.  Miscellaneous.
     -----------  -------------

     Section 12.1.  Entire Agreement; Amendments. This Agreement contains the
     -------------  ----------------------------
entire understanding of the parties with respect to the subject matter hereof
and supersedes all prior agreements and understandings, oral or written, with
respect to such matters.

     Section 12.2.  Notices. Any and all notices or other communications or
     -------------  -------
deliveries required or permitted to be provided pursuant to this Agreement shall
be in writing and shall be deemed to have been received (a) upon hand delivery
(receipt acknowledged) or delivery by telex (with correct answer back received),
telecopy or facsimile (with transmission confirmation report) at the address or
number designated below, or such other address as may be designated in writing
hereafter, in the same manner, by such person (if delivered on a Business Day
during normal business hours where such notice is to be received), or the first
Business Day following such delivery (if delivered on a Business Day after
normal business hours where such notice is to be received) or (b) on the second
Business Day following the date of mailing by express courier service, fully
prepaid, addressed to such address, or upon actual receipt of such mailing,
whichever shall first occur. The addresses for each Holder shall be maintained
by the Company.

     The address for the Company shall be:

          America Online Latin America, Inc.
          6600 N. Andrews Avenue, Suite 500
          Fort Lauderdale, FL  33309, USA
          Attention: Chief Executive Officer
          fax: (954) 772-7089

     Copies of all notices shall be sent to:

          America Online Latin America, Inc.
          6600 N. Andrews Avenue, Suite 500
          Fort Lauderdale, FL  33309, USA
          Attention: General Counsel
          fax: (954) 772-7089

                                       34
<PAGE>

     And to:
          Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
          One Financial Center, Boston, Massachusetts  02111
          Attn: Peter S. Lawrence, Esq.
          Fax No: (617) 542-2241

     The address for the Stockholders shall be:

          c/o Banco Itau S.A.
          Rua Boa Vista 176
          Sao Paulo Brazil
          Attn: President and CEO
          Fax No: (011) 55-11-237-3030

     Copies of all notices shall be sent to:

          Skadden, Arps, Slate, Meagher & Flom LLP
          Four Times Square, New York, NY  10036-6522
          Attention: Paul T. Schnell, Esq.
          Fax No: (212) 735-2000

     The address for AOL shall be:

          America Online, Inc.
          22000 AOL Way
          Dulles, VA  20166-9323, USA
          Attn:  President, AOL International
          Fax No.:  (703) 265-2502

     Copies of all notices shall be sent to:

          America Online, Inc.
          22000 AOL Way
          Dulles, VA  20166-9323, USA
          Attn: General Counsel
          Fax No.:  (703) 265-2208

                                       35
<PAGE>

     The address for ODC shall be:

          Riverview Media Corp.
          325 Waterfront Drive
          Wickhams Cay
          Road Town, Tortola
          British Virgin Islands
          Attn:  Legal Department
          Fax No.: (284) 494-4980

     Copies of all notices shall be sent to:

          Finser Corporation
          550 Biltmore Way, Suite 900
          Coral Gables, FL  33134, USA
          Attn:  Legal Department
          Fax No.:  (305) 447-1389

     Section 12.3.  Remedies. In the event of a breach by the Company or by a
     ------------   --------
Holder of any of their obligations under this Agreement, each Holder or the
Company, as the case may be, in addition to being entitled to exercise all
rights granted by law and under this Agreement, including recovery of damages,
will be entitled to specific performance of its rights under this Agreement.
The Company and the Stockholders agree that monetary damages would not provide
adequate compensation for any losses incurred by reason of a breach by any of
them of any of the provisions of this Agreement and hereby further agree that,
in the event of any action for specific performance in respect of such breach,
the breaching party or parties shall waive the defense that a remedy at law
would be adequate.

     Section 12.4.  No Inconsistent Agreements. Neither the Company nor any of
     ------------   --------------------------
its Subsidiaries has, as of the date hereof, nor shall the Company or any of its
Subsidiaries, on or after the date of this Agreement, enter into any agreement
with respect to its securities that is inconsistent with the rights granted to
the Holders in this Agreement or otherwise conflicts with the provisions hereof.
Without limiting the generality of the foregoing, the Company shall not grant to
any person the right to request the Company to register any securities of the
Company under the Securities Act unless the rights so granted are subject in all
respects to the prior rights in full of the Holders, and are not otherwise in
conflict or inconsistent with the provisions of this Agreement.

     Section 12.5.  Amendments and Waivers.  No provision of this Agreement may
     ------------   ----------------------
be waived or amended except in a written instrument signed, in the case of an
amendment, by the Company and the Holders; or, in the case of a waiver, by the
party against whom enforcement of any such waiver is sought. No waiver of any
default with respect to any provision, condition or requirement of this
Agreement shall be deemed to be a continuing waiver in the future or a waiver of
any other provision, condition or requirement hereof, nor shall any delay or
omission

                                       36
<PAGE>

of either party to exercise any right hereunder in any manner impair the
exercise of any such right accruing to it thereafter. Notwithstanding the
foregoing, no such amendment shall be effective to the extent that it applies to
less than all of the Holders. The Company shall not offer or pay any
consideration to a Holder for consenting to such an amendment or waiver unless
the same consideration is offered to each Holder and the same consideration is
paid to each Holder which consents to such amendment or waiver.

     Section 12.6.  Successors and Assigns.  This Agreement shall inure to the
     ------------   ----------------------
benefit of and be binding upon the successors and permitted assigns of each of
the parties. The rights of each Holder hereunder, including the right to have
the Company register for resale Registrable Securities in accordance with the
terms of this Agreement, shall be automatically assignable by each Holder
together with the Registrable Securities, or the securities into which such
Registrable Securities are convertible or exchangeable into, to another Person
if: (a) the assigning Holder transfers or otherwise assigns to such Person at
least 1/12th of the shares of Registrable Securities originally acquired by the
Stockholders pursuant to the Stock Subscription Agreement (as presently
constituted and subject to subsequent adjustments for stock splits, stock
dividends, reverse stock splits and the like), or, if the number of shares of
Registrable Securities so assigned is less than such number, the assignee is a
Permitted Stockholder Affiliate, (b) the Company is, within a reasonable time
after such transfer or assignment, furnished with written notice of (i) the name
and address of such transferee or assignee, and (ii) the number of securities
with respect to which such registration rights are being transferred or
assigned, (c) at or before the time the Company receives the written notice
contemplated by clause (b) of this Section, the transferee or assignee agrees in
writing with the Company to be bound by all of the provisions of this Agreement
and the provisions of the Stock Subscription Agreement applicable to transfers
of Shares, and (d) such transfer shall have been made in accordance with the
applicable requirements of any agreement applicable to the transfer of such
shares.  The rights to assignment shall apply to the Holders (and to subsequent)
successors and assigns.   Notwithstanding the foregoing, the Stockholders shall
have no right to assign any of the rights granted to the Stockholders pursuant
to Sections 10.2, 10.3, 10.4 and 10.6 of this Agreement, each of which shall be
non-transferable and personal to the Stockholders, and any such assignment shall
be null and void, except that each Stockholder may assign such rights to its
Permitted Stockholder Affiliates in connection with transfers of Shares to such
Permitted Stockholder Affiliates, and from and after any such assignment, the
Permitted Stockholder Affiliate shall have the rights of the Stockholders
hereunder.

     Section 12.7.  No Third-Party Beneficiaries.  This Agreement is intended
     ------------   ----------------------------
for the benefit of the parties hereto and their respective successors and
permitted assigns and is not for the benefit of, nor may any provision hereof be
enforced by, any other person.

     Section 12.8.  Cumulative Remedies.  The remedies provided herein are
     ------------   -------------------
cumulative and not exclusive of any remedies provided by law.

     Section 12.9.  Severability.  If any term, provision, covenant or
     ------------   ------------
restriction of this Agreement is held by a court of competent jurisdiction to be
invalid, illegal, void or unenforceable, the remainder of the terms, provisions,
covenants and restrictions set forth herein

                                       37
<PAGE>

shall remain in full force and effect and shall in no way be affected, impaired
or invalidated, and the parties hereto shall use their reasonable efforts to
find and employ an alternative means to achieve the same or substantially the
same result as that contemplated by such term, provision, covenant or
restriction. It is hereby stipulated and declared to be the intention of the
parties that they would have executed the remaining terms, provisions, covenants
and restrictions without including any of such that may be hereafter declared
invalid, illegal, void or unenforceable.

     Section 12.10.  Headings and Captions.  The headings and captions of the
     -------------   ---------------------
various subdivisions of this Agreement are for convenience of reference only and
shall in no way modify, or affect, or be considered in construing or
interpreting the meaning or construction of any of the terms or provisions
hereof.

     Section 12.11   Arbitration of Disputes.
     -------------

     (a) Any dispute, controversy or claim arising out of or relating to this
Agreement, or the breach, termination or validity thereof ("Dispute"), shall be
                                                            -------
decided by arbitration administered by the American Arbitration Association

("AAA") in accordance with the International Arbitration Rules of the AAA
 -----
("Rules").  For the purpose of any arbitration held pursuant to this Section
 -------
12.11, the Company shall act as one party and the Holders shall act as one party
for the purpose of the appointment of arbitrators and for general conduct of the
arbitration.  The arbitration shall be conducted and the award shall be rendered
in New York, New York in the English language.  Any judicial proceeding by a
party seeking to set  aside, vacate or modify an arbitral award issued hereunder
shall be filed in the United States District Court for the Southern District of
New York or the New York State Courts located in New York, New York and shall be
subject to the Federal Arbitration Act, 9 U.S.C. sec. 1 et seq.  The parties
hereto consent to the exclusive jurisdiction of the aforesaid courts for any
action to vacate or set aside an arbitration award hereunder.  Each arbitration
shall be commenced by, and on the date of, the serving of a statement of claim
by the claimant on the respondent ("Commencement"). The claimant shall
                                    ------------
simultaneously file such statement of claim with the AAA.  The arbitral award
shall be final and binding and the prevailing party may enter such award in any
court having jurisdiction.  The panel shall order all expenses and costs of an
arbitration, including reasonable counsel and consultant fees, to be paid by the
non-prevailing party.  In a proceeding in which both parties prevail on
different issues in dispute, the panel shall provide in its award for an
apportionment of such expenses and costs reasonably reflecting the relative
significance of the issues decided.  Any disputes as to the reasonableness of
counsel fees or other expenses or costs of the prevailing party shall be decided
by the same panel.  The arbitral award shall incorporate the amount of costs and
fees to be paid by the non-prevailing party.  By agreeing to arbitration, the
parties do not intend to deprive any court of its jurisdiction to issue a pre-
arbitral injunction, pre-arbitral attachment, or other order in aid of
arbitration proceedings and the enforcement of any award.  Without prejudice to
such provisional remedies as may be available under the jurisdiction of a court,
the arbitral tribunal shall have full authority to grant provisional remedies or
to order any party or parties to request that a court modify or vacate any
temporary or preliminary relief issued by that court, and to award damages for
the failure of any party to respect the arbitral tribunal's orders to that
effect.  The parties shall use commercially reasonable efforts to facilitate the
expeditious resolution of any  Disputes.

                                       38
<PAGE>

     (b) In connection with any Arbitration hereunder, the following specific
schedule and content of proceedings shall be adhered to by the parties unless
otherwise mutually agreed. There shall be three (3) neutral arbitrators, of whom
each party shall appoint one within thirty (30) days of the receipt by the
respondent of the statement of claim. If any arbitrator is not appointed within
the time limit provided herein, such arbitrator shall be appointed by the
American Arbitration Association. The two arbitrators so appointed shall select
the chair of the arbitral tribunal within thirty (30) days of the appointment of
the second arbitrator. If the third arbitrator is not appointed within the time
limit provided herein, such arbitrator shall be appointed by the American
Arbitration Association by providing the parties a list of ten (10) qualified
arbitrators and their relevant biographical data. Within ten (10) days after
receipt of such list, each party shall return said list to the AAA in which it
shall strike three (3) of the arbitrators and rank the remaining arbitrators 1
through 7, 1 being the party's first choice. Unless the parties agree to request
an additional list from the AAA, and thus to repeat the process with the same
timing, the AAA shall select the arbitrator as promptly as possible having the
highest combined preference based upon the rankings of the parties. Upon written
notice by the AAA to the parties of the third arbitrator selected, the panel
shall be seated. The arbitrator who shall serve as chair of the tribunal shall
not be a national of the United States or Brazil.

     (c) In order to facilitate the comprehensive resolution of related
disputes, all claims between any of the parties to this Agreement that arise
under or in connection with this Agreement and/or any of the Related Agreements
(other than the Escrow Agreement) may be brought in a single arbitration. Upon
the request of any party to an arbitration proceeding constituted under this
Agreement, the arbitral tribunal shall consolidate the arbitration proceeding
with any other arbitration proceeding involving any of the parties hereto
relating to any of the Related Agreements (other than the Escrow Agreement) if
the arbitrators determine that (i) there are issues of fact or law common to the
proceedings so that a consolidated proceeding would be more efficient than
separate proceedings, and (ii) no party would be unduly prejudiced as a result
of such consolidation through undue delay or otherwise. In the case of all
arbitration proceedings hereunder, the award of the arbitrators shall be final
and fully effective as between the parties when the award is issued to the
parties without regard to the filing by any party of judicial proceedings
seeking to set aside, vacate or modify the award. If proceedings are filed as to
any award and a final judicial determination is made setting aside, vacating or
modifying the award, the parties shall take all appropriate actions to comply
with such determination, including the revocation or unwinding of any actions
taken or restoration of any payments made pursuant to the arbitral award with
interest thereon at the prevailing rate. In any consolidated arbitration held
pursuant to this Section 12.11(c), the procedures to be followed shall be the
arbitration procedures set forth in Sections 13.2 and 13.2 of the Marketing
Agreement.

                                       39
<PAGE>

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

                              AMERICA ONLINE LATIN AMERICA, INC.

                              By:_________________________________
                              Name:_______________________________
                              Title:______________________________

                                 BANCO ITAU, S.A.

WITNESS:
                              By:_________________________________
By: _________________         Name:  Roberto Egydio Setubal
Name:                         Title: President and Chief Executive Officer
Title:

WITNESS:
                              By:_________________________________
By: _________________         Name:  Milton Luis Ubach Monteiro
Name:                         Title: Executive Vice President
Title:

                              BANCO BANERJ, S.A.

WITNESS:
                              By:_________________________________
By: _________________         Name:  Roberto Egydio Setubal
Name:                         Title: President
Title:

WITNESS:
                              By:_________________________________
By: _________________         Name:  Ronald Anton de Jongh
Name:                         Title: Executive Director
Title:

                                       40
<PAGE>

The parties signing below are signing for the limited purpose of joining the
covenants contained in Sections 10.2, 10.3, 10.4 and 10.5 of this Agreement.

                              AMERICA ONLINE, INC.

                              By:_____________________________
                              Name:___________________________
                              Title:__________________________

                              RIVERVIEW MEDIA CORP.

                              By:_____________________________
                              Name:___________________________
                              Title:__________________________

                                       41

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