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Document Preview Data Delivery Network Agreement [Amendment No. 1] |
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Title: |
Data Delivery Network Agreement [Amendment No. 1] |
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Entities: |
Silicon Valley Bank; WAVO Corp.; Venable LLP; Venable, Baetjer and Howard, LLP |
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Date: |
2000 |
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Size: |
Preview shows 6KB of 28KB total |
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Price: |
$32 |
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ID: |
#337776 |
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AMENDMENT NO. 1
TO
DATA DELIVERY NETWORK AGREEMENT
THIS AMENDMENT NO. 1 TO DATA DELIVERY NETWORK AGREEMENT (this
"Amendment") is made as of September 11, 2000, by and between WAVO CORPORATION
(f/k/a WAVEPHORE, INC.), an Indiana corporation ("Wavo"), and NATIONAL DATACAST,
INC., a Delaware corporation ("NDI").
WHEREAS, WAVO and NDI are parties to that certain Data Delivery Network
Agreement dated October 15, 1996 (the "Agreement");
WHEREAS, WAVO currently is in arrears on the payments due NDI under the
Agreement;
WHEREAS, after giving effect to all payments made by Wavo under the
Agreement, there remains Four Million Four Hundred Thousand Dollars ($4,400,000)
of guaranteed base payments payable during the remainder of the Initial Service
Term; and
WHEREAS, the parties have agreed to revise the payment schedule under
the Agreement, and therefore desire to amend the terms of the Agreement to
reflect, in writing, their mutual understandings and agreements as to the
revised payment schedule and other matters described herein.
NOW, THEREFORE, in consideration of the foregoing and of other good and
valuable consideration set forth herein, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto, intending to be legally bound,
hereby covenant and agree as follows:
1. In addition to any bonus payments which may in the future become
payable to NDI under the Agreement, for the remainder of the Initial
Service Term, Wavo will pay a total of Two Million Dollars
($2,000,000) in cash to NDI, of which Eight Hundred Thousand Dollars
($800,000) will be payable on October 15, 2000, Two Hundred Thousand
Dollars ($200,000) will be payable on November 15, 2000, Four Hundred
Thousand Dollars ($400,000) will be payable on January 15, 2001, Four
Hundred Thousand Dollars ($400,000) will be payable on February 15,
2001, and the final payment of Two Hundred Thousand Dollars ($200,000)
will be payable on April 15, 2001.
2. (a) Within ten (10) business days of the date hereof, Wavo will
deliver to NDI shares of common stock of Wavo in a number equal to One
Million Four Hundred Thousand Dollars ($1,400,000) divided by the
closing sale price of such stock, as reported by NASDAQ (the "Closing
Price") on the second business day prior to delivery of such stock
(the "Wavo Shares"). Within thirty (30) days after delivery of the
Wavo Shares, Wavo shall file a registration statement on Form S-3, or
another appropriate form, with the
{PAGE} 2
Securities and Exchange Commission (the "SEC") covering the resale of
the Wavo Shares by NDI (the "Registration Statement"). Wavo hereby
represents to NDI that it is currently eligible to register the Wavo
Shares on Form S-3 under the Securities Act of 1933, as amended. Wavo
will use its best efforts to cause such Registration Statement to be
declared effective by the SEC as early as practicable, but no later
than ninety (90) days after its initial filing with the SEC. If the
Registration Statement is not declared effective within such ninety
(90) day period, Wavo will be immediately obligated to repurchase the
Wavo Shares for One Million Four Hundred Thousand Dollars ($1,400,000)
(the "Share Repurchase Obligation"), unless, prior to the expiration
of such ninety (90) day period, Wavo delivers to NDI a letter from its
outside legal counsel responsible for the filing of the Registration
Statement to the effect that, in the reasonable judgment of such
counsel, the SEC is expected to declare the Registration Statement
effective within ten (10) business days following the end of the
ninety (90) day period. Upon receipt by NDI of such a letter, (i) Wavo
will have an additional ten (10) business days after the expiration of
the ninety (90) day period to cause the Registration Statement to be
declared effective and (ii) the Share Repurchase Obligation will be
triggered only upon the end of such ten (10) business day period if
the Registration Statement is not effective prior to the expiration of
such ten (10) business day period. Wavo will use its best efforts to
ensure that the Registration Statement remains effective until the
earlier of (i) such time as NDI has realized One Million Four Hundred
Thousand Dollars ($1,400,000) of net proceeds (as described below)
from the sale of the Wavo Shares or (ii) such time as NDI has sold all
of the Wavo Shares.
(b) If the sum of the total net proceeds (gross proceeds less direct
selling costs) received by NDI from the sale of the Wavo Shares is
less than One Million Four Hundred Thousand Dollars ($1,400,000), Wavo
shall, within three (3) business days after receipt of notice by NDI
of the sale of the last Wavo Shares, issue a promissory note in the
amount represented by the difference between One Million Four Hundred
Thousand Dollars ($1,400,000) and the total net proceeds received by
NDI from the sale of the Wavo Shares. Such promissory note will be
payable by Wavo in cash to NDI in three equal monthly installments
commencing thirty (30) days after the end of the date required for
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