Document:

ex101.htm

                                            EXHIBIT
      10.1

                                                                                

                                                                            

                                                                                Execution
      Copy

    TRANSITION
      AGREEMENT

    

    THIS
      TRANSITION AGREEMENT (“Agreement”)
      is entered into as of the 30th day of April, 2008 by and among (i)
      BROADPOINT SECURITIES GROUP, INC. (f/k/a FIRST ALBANY COMPANIES INC.)
      (“Broadpoint”), a New York corporation, (ii) FA TECHNOLOGY VENTURES
      CORPORATION (“MgmtCo”), a Delaware corporation (iii) FA TECHNOLOGY
      HOLDING, LLC (“NewCo”), a Delaware limited liability company, and (iv)
      GEORGE C. McNAMEE, GREGORY A. HULECKI, KENNETH A. MABBS, GIRI C. SEKHAR, JOHN
      A.
      COCOCCIA and CLAIRE WADLINGTON (collectively, the “FATV Principals”) with
      regard to a proposed restructuring of the investment management arrangements
      relating to FA Technology Ventures , L.P. (“Fund II”), an existing
      venture capital fund managed by MgmtCo, and the formation of FA Technology
      Ventures III, L.P. (together with any parallel investment vehicle, “Fund
      III”), a new venture capital fund to be sponsored and managed by NewCo and
      its subsidiaries (collectively, the “Transactions”).

    

    1.  Organization
      of
      NewCo.  NewCo has been duly formed and is wholly-owned by certain
      of the FATV Principals.  Broadpoint will not have an ownership
      interest in NewCo.

    

    2.  Structuring
      Fund
      III.  NewCo has presented Broadpoint with a draft Confidential
      Private Placement Memorandum of Fund III (the “PPM”), which PPM includes
      the proposed terms of Fund III (including the amount of the management fee,
      the
      carried interest and related clawback obligations and certain other customary
      rights and obligations of the investors in Fund III and other pertinent
      details).  Broadpoint has reviewed and approved the PPM.  It
      is contemplated that, although Fund III will in many respects be structured
      in a
      manner similar to Fund II, Broadpoint and its subsidiaries will not guarantee
      any of the obligations of NewCo, the general partner of Fund III (“GP
      III”) (except for its pro-rata share of any clawback obligation as set forth
      in paragraph 7) or any of their affiliates under the Fund III
      documents.  There will also be no offset against the management fees
      payable by Fund III to NewCo or its subsidiaries for any investment banking,
      advisory, commitment, consulting, director or similar fees paid by Fund III
      portfolio companies to Broadpoint or its subsidiaries or other restrictions
      or
      disincentives for such portfolio companies to engage Broadpoint and its
      subsidiaries for investment banking or financial advisory services.

    

    3.  Broadpoint
      Investment
      Commitment.  Subject to the execution and delivery of mutually
      acceptable definitive agreements governing Fund III (the “Fund III
      Agreements”) and definitive agreements of GP III (the “GP III
      Agreements” and collectively with the Fund III Agreements, the
“Definitive Fund Agreements”), Broadpoint, as part of the Definitive Fund
      Agreements, will make a capital commitment of $10 million to Fund III at the
      first closing of Fund III (the “Broadpoint Commitment”), as long as the
      total commitments to Fund III (excluding the Broadpoint Commitment) exceed
      $50
      million (the “Funding Threshold”) and if the Funding Threshold is not met at the
      First Closing of Fund III then such $10 million commitment shall be made at
      the
      closing of Fund III at which the Funding Threshold is met; provided, however,
      if
      the Funding Threshold is not met by June 30, 2009, Broadpoint’s obligation to
      make the Broadpoint Commitment shall terminate.  Once the Definitive
      Fund III Agreements have been executed by Broadpoint in respect of the
      Broadpoint Commitment, NewCo and its subsidiaries may disclose such commitment
      in their fundraising efforts for Fund III and, prior to such time (so long
      as
      Broadpoint’s obligations hereunder have not been terminated), NewCo and its
      subsidiaries may also disclose to potential investors in Fund III that
      Broadpoint and NewCo have entered into this Agreement contemplating such a
      commitment.  Broadpoint acknowledges that the terms of Fund III are
      expected to be substantially similar to those set forth in the PPM and
      Broadpoint acknowledges that such terms are acceptable.  The parties
      acknowledge that the terms of Fund III may be subject to negotiation with
      investors and agree that (i) Broadpoint will be entitled to “most favored
      nation” treatment with regard to its rights and obligations as an investor in
      Fund III compared to other investors (subject to customary exclusions previously
      approved by Broadpoint) and (ii) Broadpoint will have the right to terminate
      its
      obligation to make the Commitment if such negotiations result in changes to
      the
      terms of Fund III that Broadpoint determines in good faith to be materially
      adverse to its interests.

    

    4.  Fundraising.  NewCo
      and its subsidiaries will be permitted to use all performance information from
      Fund II and venture capital investments made through Broadpoint prior to Fund
      II
      (the “FATV I Portfolio”) and due diligence materials and other books and
      records associated with such investments (subject to any applicable
      confidentiality restrictions) in preparing the PPM and other due diligence
      and
      offering materials for Fund III and any successor fund sponsored by
      NewCo.  It is also contemplated that Broadpoint will assist NewCo and
      its subsidiaries in fundraising for Fund III.  Contemporaneously
      herewith, NewCo shall, and Broadpoint shall cause Broadpoint Capital, Inc.
      or
      another broker-dealer subsidiary of Broadpoint (the “Broadpoint B/D”) to,
      execute and deliver a Placement Agent Agreement substantially in the form
      attached as Exhibit A hereto (the “Placement Agent Agreement”)
      pursuant to which, among other things, Broadpoint B/D will develop a target
      list
      of potential investors in Fund III with whom Broadpoint or its affiliates have
      a
      relationship (the “Target List”), which will be subject to NewCo’s
      approval, and may otherwise assist NewCo in the fundraising for Fund
      III.  NewCo and its subsidiaries and representatives shall comply with
      all applicable securities and other laws in the fundraising activities for
      Fund
      III and in the management and operation of Fund III, GP III and NewCo and
      Broadpoint and Broadpoint B/D shall comply with all applicable securities and
      other laws in their fundraising activities for Fund III.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    5.  Modifications
      to
      Certain Fund II Arrangements.

    

    (a)  Concurrent
      with the
      first closing of Fund III (the “Trigger Date”), MgmtCo will assign all of
      its rights and interest in the Investment Advisory Agreement between it and
      FATV
      GP LLC in respect of Fund II (the “Fund II Investment Advisory
      Agreement”) to NewCo and NewCo will assume all of MgmtCo’s obligations and
      liabilities thereunder and will indemnify Broadpoint and its affiliates
      (including MgmtCo) against all claims and liabilities relating to such agreement
      arising in respect of matters occurring after the Trigger Date.  Such
      assignment and assumption will be effected by execution of the Consent,
      Assignment and Assumption Agreement attached hereto as Exhibit B which
      NewCo and MgmtCo agree to execute on the Trigger Date and which NewCo agrees
      to
      use its reasonable best efforts to cause FATV GP LLC to execute as soon as
      practicable thereafter.  Any management fees prepaid to Broadpoint
      pursuant to the Fund II Investment Advisory Agreement will be pro-rated on
      a
      daily basis and any portion thereof relating to a period after the Trigger
      Date
      will be remitted to NewCo as soon as practicable after the Trigger
      Date.

    

    (b)  NewCo
      will use
      reasonable efforts to terminate any existing restrictions or disincentives
      on
      portfolio companies of Fund II from engaging Broadpoint and its subsidiaries
      in
      a financial advisory or any other capacity.  Broadpoint acknowledges
      that there can be no assurance of success in terminating any such
      restrictions.

    

    6.  Termination
      of the
      Employment of the FATV Principals.  On the Trigger Date, each of
      the FATV Principals will resign from MgmtCo and/or Broadpoint, as the case
      may
      be.  Both (1) the FATV Principals and (2) MgmtCo and/or Broadpoint,
      agree to mutually release one another from all further obligations or
      liabilities and not to disparage one another to any other party; provided
      that Broadpoint’s release of the FATV Principals shall not apply to (x) any
      right of recourse that Broadpoint or its affiliates may have against such FATV
      Principals in the event that a third party asserts a claim against Broadpoint
      or
      any affiliate based on any actions or inactions of such FATV Principals while
      employed by Broadpoint or any affiliate or (y) the rights of Broadpoint and
      its
      affiliates under this Agreement and the agreements referred to herein;
provided, further, that the FATV Principals’ release of Broadpoint
      and its affiliates shall not apply to any rights (A) under any employment
      benefit or compensation plan of Broadpoint or MgmtCo, (B) under this Agreement
      and the agreements referred to herein or (C) claims for
      indemnification or insurance coverage for actions taken or not taken prior
      to
      the date such FATV Principals resign from MgmtCo and/or Broadpoint, as the
      case
      may be.  Broadpoint confirms that each of the FATV Principals are
      covered by the indemnification provisions set forth in MgmtCo’s corporate
      by-laws for their actions or inactions as employees of MgmtCo to the extent
      they
      meet the standard of care required for such indemnification and that the
      indemnification provisions set forth in such by-laws will not be amended in
      a
      manner that adversely affects the FATV Principals.

    

    7.  Broadpoint
      Participation in Fund III Carried Interest.  Subject to the
      Broadpoint Commitment, the GP III Agreements will provide Broadpoint (or its
      designated subsidiary) with an equity interest in GP III entitling it to a
      minimum of 10% of the carried interest earned by GP III.  Broadpoint
      B/D will also have the right to receive an additional 1% of the carried interest
      earned by GP III for each $5 million of capital commitments made (and accepted
      by GP III) to Fund III from investors on the Target List up to a maximum of
      an
      additional 10% of the carried interest earned by GP III, it being contemplated
      that Broadpoint B/D will assign such equity interest or the right to receive
      such equity interest to Broadpoint (or its designated subsidiary).  In
      respect of any such equity interest, Broadpoint (or its applicable subsidiary)
      will be responsible for its pro-rata share of any clawback obligations and
      to
      fund its pro rata share of GP III’s obligations to invest in Fund III, in each
      case consistent with the obligations of the other partners or members of GP
      III.

    

    8.  Funding
      of
      Expenses.

     

    (a)  MgmtCo
      will continue to
      operate consistent with current practice (operations, staffing and expenses)
      for
      the purpose of performing its obligations under the Fund II Investment Advisory
      Agreement (and Broadpoint agrees to fund MgmtCo for such operations, subject
      to
      the provisions below) through the date (the “Cut-Off Date”) that is the
      earlier to occur of the following dates (i) the Trigger Date and (ii) December
      31, 2008.  The parties expect that MgmtCo will operate consistent with
      a budget agreed upon by the parties attached hereto as Exhibit C, and
      NewCo will provide Broadpoint with monthly reports outlining actual results
      as
      compared to the budget as soon as practicable after the end of each
      month.  In addition, MgmtCo will provide NewCo with bridge funding for
      reasonable out-of-pocket legal, travel and other expenses incurred by NewCo
      prior to the Cut-Off Date in connection with the organization and marketing
      of
      Fund III (“Fund-Related Expenses”); consistent with the budget agreed
      upon by the parties attached hereto as Exhibit D, and NewCo will provide
      Broadpoint with monthly reports outlining actual results as compared to budget
      as soon as practicable after the end of each month.  It is
      contemplated that the expenses to be borne by MgmtCo pursuant to this Paragraph
      8(a) will principally be funded out of the management fees payable to Mgmt
      Co
      under the Fund II Investment Advisory Agreement.

     

    (b)  As
      soon as practicable
      following the Trigger Date, NewCo or Fund III shall reimburse MgmtCo for any
      Fund-Related Expenses funded by MgmtCo, as well as for any operating losses
      incurred by MgmtCo in respect of Fund II and Fund III after June 30,
      2008.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    9.  Use
      of FA Technology
      Name/Trademark Assignment.  Broadpoint hereby authorizes NewCo to
      use the name “FA Technology” as part of its corporate name, subject to
      Broadpoint’s right to terminate such right in the event of any breach by NewCo
      of any of its obligations under this Agreement, provided, however,
      that Broadpoint’s right to terminate NewCo’s right to use the name “FA
      Technology” as part of its corporate name shall lapse as of the Trigger
      Date.   Broadpoint hereby conveys, assigns and transfers to
      NewCo, effective on the Trigger Date without further action of the parties,
      ownership of the name “FA Technology” and any derivation thereof (the “Name
      Rights”, which include, without limitation, the rights to use “FA Technology
      Ventures” and “FATV”) along with the goodwill appurtenant thereto, and all
      rights Broadpoint has in the Name Rights shall automatically transfer to NewCo
      on the Trigger Date, including the right to seek trademark registration for
“FA
      Technology” and to sue for past infringement, subject in each case to NewCo’s
      grant to Broadpoint of a limited continuing right to use certain Name Rights
      described below.  Broadpoint agrees to execute upon request any lawful
      documents and to perform any other lawful acts as may be reasonably requested
      by
      NewCo to secure fully or perfect the aforesaid assignment to NewCo, its
      successors, assigns, and legal representatives at its or their
      expense.  After the Trigger Date, Broadpoint and its affiliates shall
      not use the Name Rights except as follows:  (i) Broadpoint and its
      affiliates will continue to have the right to use the Name Rights in any
      description of their businesses or operations relating to the period prior
      to
      the Trigger Date or otherwise relating to their former ownership of the Name
      Rights and (ii) Broadpoint and its affiliates will have the right to use the
      name “FA Technology Ventures” in marketing materials to represent that there is
      a strategic relationship between Broadpoint and NewCo.  Any additional
      use of “FA Technology Ventures” by Broadpoint is subject to the prior written
      approval of NewCo (which approval shall not be unreasonably
      withheld).

     

    10.  Nonsolicitation.  In
      consideration of the assistance contemplated to be given by Broadpoint in
      connection with the organization and marketing of Fund III, each FATV Principal
      hereby agrees: during the Non-Solicitation Restricted Period (as defined below)
      not to directly or indirectly (through NewCo or otherwise) solicit for
      employment or hire anyone who is an employee of Broadpoint or any subsidiary
      (other than other FATV Principals and other than Molly Mont and Cathy
      McBride).  For such purpose, “Non-Solicitation Restricted
      Period” means the period beginning on the date hereof and ending eighteen
      months after the Trigger Date; provided that the Non-Solicitation Period
      shall automatically terminate if the employment of such FATV Principal with
      Broadpoint and its subsidiaries is terminated without cause.

     

    11.  Governing
      Law;
      Jurisdiction.  This Agreement shall be governed by, and construed
      in accordance with, the laws of the State of New York.  If any action
      or proceeding shall be brought by a party to this Agreement or to enforce any
      right or remedy under this Agreement, each party hereto hereby consents and
      will
      submit to the jurisdiction of the courts of the State of New York or any Federal
      court sitting in the County, City and State of New York.  Any action
      or proceeding brought by any party to this Agreement to enforce any right,
      assert any claim or obtain any relief whatsoever in connection with this
      Agreement shall be brought by such party exclusively in the courts of the State
      of New York or any Federal court sitting in the County, City and State of New
      York.

     

    12.  Counterpart
      Signatures.  This Agreement may be signed in any number of
      counterparts, each of which shall be deemed an original and all of which shall
      be deemed one and the same instrument.

     

    13.  Deemed
      to be Prepared
      by All Parties.  In interpreting this Agreement, it shall be
      deemed that it was prepared by all of the parties jointly and no ambiguity
      shall
      be resolved against any party on the premise that it or its attorneys was
      responsible for having drafted this Agreement or the provision at
      issue.

    

    14.  Severability. In
      the event that any provision of this Agreement shall be invalid, illegal or
      unenforceable, the validity, legality and enforceability of the remaining
      provisions shall not in any way be affected or impaired thereby.

     

    15.  Termination.  If
      the initial closing of Fund III has not taken place on or prior to March 31,
      2009, the parties’ rights and obligations under this Agreement shall
      automatically terminate except as follows: (a) the non-solicitation obligations
      of each FATV Principal shall continue until eighteen months following any
      termination of such FATV Principal’s employment with MgmtCo or its subsidiaries
      unless such employment was involuntarily terminated by MgmtCo or such
      subsidiaries and in any case such non-solicitation obligations shall not apply
      with respect to other FATV Principals, Molly Mont or Cathy McBride and (b)
      upon
      the initial closing of any subsequent venture capital fund sponsored by NewCo
      or
      any 4 of the 6 FATV Principals prior to June 30, 2009, NewCo or such FATV
      Principals shall cause NewCo or such subsequent fund to reimburse Broadpoint
      for
      any Fund-Related expenses funded by Broadpoint pursuant to Paragraph
      8(a).

    
 

                                        [the
      next page is the
      signature page] 

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

        IN
      WITNESS
      WHEREOF the undersigned have executed this Agreement as of the day and year
      first above written.

     

    BROADPOINT:

     

     

    BROADPOINT
      SECURITIES GROUP,
      INC.

     

    By:
      /s/ Lee Fensterstock

    Name:
      Lee Fensterstock

    Title:   Chief
      Executive Office

     

                                          
      

                                                                                                   
      NEWCO:                            

             

     

    FA
      TECHNOLOGY HOLDING,
      LLC

     

    By:
      /s/ Gregory A.
      Hulecki

    Name:
      Gregory A. Hulecki

    Title:   Member

     

     

    MGMTCO:

     

     

    FA
      TECHNOLOGY
      VENTURESCORPORATION

     

    By:
      /s/ Lee Fensterstock

    Name:
      Lee Fensterstock

    Title:   Chief
      Executive Office

     

     

    FATV
      PRINCIPALS:

                                

    /s/
      George C. McNamee

    GEORGE
      C.
      MCNAMEE (with respect to sections 6 and 10 only)

    

    /s/
      Gregory A. Hulecki

    GREGORY
      A. HULECKI (with respect to sections 6 and 10 only)

    

    /s/
      Kenneth A. Mabbs

    KENNETH
      A. MABBS (with respect to sections 6 and 10 only)

     

    /s/
      Giri
      C. Sekhar 

    GIRI
      C.
      SEKHAR (with respect to sections 6 and 10 only)

     

    /s/
      John
      A. Cococcia

    JOHN
      A.
      COCOCCIA (with respect to sections 6 and 10 only)

     

    /s/
      Claire Wadlington

    CLAIRE
      WADLINGTON (with respect to sections 6 and 10 only)ex102.htm

    
                                                                                        EXHIBIT
      10.2

     

                                                          Execution
      Copy

     

    PLACEMENT
      AGENT AGREEMENT

     

    This
      Placement Agent Agreement, dated as of April 30, 2008 (the “Agreement”),
      among BROADPOINT CAPITAL, INC. (f/k/a FIRST ALBANY CAPITAL INC.)
      (“Broadpoint”), a New York corporation, and FA TECHNOLOGY HOLDING, LLC, a
      Delaware limited liability company (“Fund Sponsor”).

     

    WHEREAS,
      Fund Sponsor expects to begin fundraising for a new venture capital fund, FA
      Technology Ventures III, L.P. (the “Fund”) and to offer, sell and issue limited
      partner interests in the Fund (“Interests”), as described in the Fund’s
      Confidential Private Placement Memorandum dated October, 2007 (the
“Memorandum”), and to sell Interests to eligible persons as described in
      the  Memorandum and the Fund’s subscription documents;

     

    WHEREAS,
      this Agreement is being entered into pursuant to Section 4 of the Transition
      Agreement dated as of April 30, 2008 among Broadpoint Securities Group, Inc.,
      Fund Sponsor, FA Technology Ventures Corporation and certain other
      parties;

     

    NOW,
      THEREFORE, in consideration of the premises and the mutual covenants contained
      herein and other good and valuable consideration, the value of which is hereby
      acknowledged, the parties hereto agree as follows:

     

    1.  Appointment
      of Placement Agent.

     

    (a)  The
      Fund
      Sponsor hereby appoints Broadpoint as the Fund’s non-exclusive placement agent
      to privately solicit offers for the purchase of Interests from persons with
      which Broadpoint and/or its affiliates have pre-existing
      relationships.

     

    (b)  Prior
      to
      soliciting such offers, Broadpoint will present the Fund Sponsor with a list
      of
      the target investors to be solicited (the “Target List”), which Target
      List shall be subject to the approval of the Fund Sponsor.  Any
      investor on the Target List approved by the Fund Sponsor shall be referred
      to
      herein as a Target Investor.

     

    (c)  Notwithstanding
      any provision to the contrary herein, the General Partner of the Fund may,
      at
      its sole discretion, reject any subscription for Interests in whole or in part
      at any time prior to acceptance.

     

    (d)  With
      respect to the solicitation of offers from Target Investors to purchase
      Interests, the Fund Sponsor and Broadpoint agree as follows:

     

    (i)  It
      being
      acknowledged that Broadpoint has already approved the form of base offering
      memorandum that the Fund Sponsor proposes to use in soliciting offers to invest
      in the Fund, the Fund Sponsor and Broadpoint shall each have the right to
      approve in advance any changes to such base offering memorandum to be
      distributed to Target Investors, as well as any form of supplemental offering
      memorandum or other offering materials distributed to the Target Investors;
      provided, however, that any such changes, supplements or other
      materials shall be deemed to be approved by Broadpoint unless Broadpoint objects
      within 10 days of delivery of such materials and, provided,
further, that due diligence material provided to Target Investors,
      are
      not subject to prior approval by Broadpoint;

     

    (ii)  Broadpoint
      and the Fund Sponsor acknowledge and agree that the Interests have not been
      and
      will not be registered under the 1933 Act.  Neither the Fund Sponsor
      nor Broadpoint, nor their affiliates nor any person acting on behalf of the
      Fund
      Sponsor or Broadpoint or their affiliates has offered or sold, or will offer
      or
      sell, any Interests, by any form of general solicitation or general advertising,
      including any advertisement, article, notice or other communication published
      in
      any newspaper, magazine or similar media or broadcast over television or radio,
      or any seminar or meeting whose attendees have been invited by any general
      solicitation or advertising; and

     

    (iii)  Broadpoint
      and the Fund Sponsor acknowledge that no action has been or will be taken that
      would permit a public offering of the Interests in any jurisdiction in which
      action for that purpose is required.  Broadpoint and the Fund Sponsor
      agree that they will comply with all applicable laws and regulations, make
      or
      obtain all necessary filings, consents and approvals, and take such other
      actions as may be required to permit offers and sales of the Interests in each
      jurisdiction in which they offer any Interests or distribute the Memorandum
      or
      any other sales literature relating to the Interests, in each case at the Fund’s
      expense.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (e)  Broadpoint
      acknowledges that it is not authorized to give any information or to make any
      representation relating to the Fund or the Interests, other than those contained
      in the Memorandum and any sales literature provided by the Fund
      Sponsor.

     

    (f)  Applications
      of Target Investors to subscribe for Interests shall be made in writing (by
      letter or facsimile) to the Fund by completing a subscription document or form,
      the original of which shall be delivered to the Fund, or in such other manner
      as
      may be prescribed by the Fund Sponsor from time to time.

     

    (g)  The
      amount of effort to be expended by Broadpoint pursuant to this Agreement in
      soliciting offers from Target Investors to subscribe for Interests shall be
      solely within the discretion of Broadpoint.  The Fund Sponsor shall
      have no claim against Broadpoint if Broadpoint elects not to include on the
      list
      of Target Investors one or more persons with which Broadpoint or its affiliates
      have relationships that might be suitable investors in the Fund, if Broadpoint
      fails to make any efforts or makes only limited efforts to solicit offers to
      subscribe for Interests from any Target Investors on such list or if any efforts
      made by Broadpoint to solicit such offers are unsuccessful.

     

    (h)  Broadpoint
      will have a reasonable basis to believe immediately prior to making any offer
      or
      sale of Interests to any Target Investor that such Target Investor (i) is an
      “accredited investor,” as that term is defined in Rule 501(a) of Regulation D
      under the Securities Act of 1933, as amended, (ii) is a “qualified purchaser,”
as such term is defined in Section 2(a)(51) under the Investment Company Act
      of
      1940, as amended, and (iii) meets such other eligibility criteria as are set
      forth in the Memorandum.”

     

    (i)  Broadpoint
      will not negotiate on behalf of Fund Sponsor in any negotiations between Fund
      Sponsor and any of the Target Investors.  Broadpoint shall provide
      commercially reasonable assistance to the Fund Sponsor and the Fund to obtain
      and provide information required to be included in any securities law filings
      required to be made by the Fund or the Fund Sponsor with any governmental
      authority.  The Fund Sponsor shall be solely responsible for the
      proper and timely preparation and filing of such securities law
      filings.

     

    2.  Suspension
      of Offering.  
The
      provisions of this Agreement relating to the solicitation of offers from Target
      Investors to purchase Interests may be suspended or terminated at any time
      by
      the Fund Sponsor or Broadpoint upon the giving of written notice of such
      suspension or termination to the other parties hereto.  Without
      limiting the generality of the foregoing, if Broadpoint gives the Fund Sponsors
      written notice that it is suspending the solicitation of offers from one or
      more
      of the Target Investors identified in that notice, the Fund Sponsors shall
      promptly cease all efforts to solicit offers from such Target Investors to
      purchase Interests.  In the event of any suspension or termination
      prior to the occurrence of the initial closing of any sale of Interests, no
      party shall have any further obligations to any other party hereto pursuant
      to
      the terms of this Agreement.  In the event of any suspension or
      termination by Broadpoint with respect to one or more Target Investors, the
      Fund
      Sponsors agree not to make any further efforts to solicit offers from such
      Target Investors to purchase Interests.  The representations,
      warranties and indemnity provisions of this Agreement shall survive any
      termination or suspension of this Agreement.

     

    3.  Indemnification.

     

    (a)  The
      Fund
      Sponsor agrees to indemnify and hold harmless Broadpoint, and its officers,
      directors, controlling persons, employees and “affiliates” (as defined in
      Section 3(b) below, and, together with such officers, directors, controlling
      persons, and employees, “Related Persons”) from and against any loss,
      liability, damage, cost and expense (including attorneys’ and accountants’ fees
      and expenses incurred in investigating or defending any demands, claims or
      lawsuits), including, without limitation, any demands, claims or lawsuits
      initiated by a Target Investor (or assignee thereof), actually and reasonably
      incurred arising from (i) any act, omission, activity or conduct undertaken
      pursuant to this Agreement by or on behalf of the Fund or Fund Sponsor, (ii)
      a
      breach by the Fund Sponsor of any representation, warranty or agreement in
      this
      Agreement or a breach by or on behalf of the Fund Sponsor of any applicable
      laws
      or regulations, or (iii) any actual or alleged misstatement of material fact
      in
      the Memorandum or the Fund’s other offering materials provided by the Fund
      Sponsor or omission from the Memorandum or the Fund’s other offering materials
      of any statements necessary to make the statement made therein, in light of
      the
      circumstances under which they were made, not misleading; provided, in
      the case of clauses (i) and (ii) above, that the act, omission, activity or
      conduct that was the basis for such loss, liability, damage, cost or expense
      was
      not adjudicated to be the result of willful misconduct or gross negligence
      on
      the part of the indemnified party or its Related Persons.

     

    (b)  As
      used
      in this Section 3 the term “affiliate” of a person shall
      mean:        (i) any natural person,
      partnership, corporation, association, or other legal entity directly or
      indirectly owning, controlling, or holding with power to vote 10% or more of
      the
      outstanding voting securities of such person; (ii) any partnership, corporation,
      association, or other legal entity 10% or more of whose outstanding voting
      securities are directly or indirectly owned, controlled, or held with power
      to
      vote by such person; (iii) any natural person, partnership, corporation,
      association, or other legal entity directly or indirectly controlling,
      controlled by, or under common control with, such person; or (iv) any officer,
      director or partner of such person.

     

    (c)  In
      case
      any proceeding (including any governmental investigation) shall be instituted
      involving a person in respect of which indemnity may be sought pursuant to
      Section 3(a), the person seeking the indemnity (the “indemnified party”)
      shall promptly notify the person against whom such indemnity may be sought
      (the
“indemnifying party”) in writing; but the omission to so notify the
      indemnifying party will not relieve the indemnifying party from any liability
      which the indemnifying party may have to the indemnified party hereunder, except
      where such omission has materially prejudiced the indemnifying
      party.  The indemnifying party, upon request of the indemnified party,
      shall retain counsel reasonably satisfactory to the indemnified party to
      represent the indemnified party and any others the indemnifying party may
      designate in such proceeding and shall pay the fees and disbursements of such
      counsel related to such proceeding.  In any such proceeding, any
      indemnified party shall have the right to retain its own counsel, but the fees
      and expenses of such counsel shall be at the expense of such indemnified party
      unless (i) the indemnifying party and the indemnified party shall have mutually
      agreed to the retention of such counsel or (ii) the named parties to any such
      proceeding (including any impleaded parties) include both the indemnifying
      party
      and the indemnified party and representation of both parties by the same counsel
      would be inappropriate due to actual or potential differing interests between
      them.  It is understood that the indemnifying party in connection with
      any proceeding or related proceedings in the same jurisdiction may be liable
      for
      the fees and expense of more than one separate firm (in addition to any local
      counsel) for all such indemnified parties and that all such fees and expenses
      shall be reimbursed as they are incurred.  The indemnifying party
      shall not be liable for any settlement of any proceeding effected without its
      written consent, but if settled with such consent, the indemnifying party agrees
      to indemnify the indemnified party from and against any loss or liability by
      reason of such settlement.  No indemnifying party shall, without the
      prior written consent of the indemnified party, effect any settlement of any
      pending or threatened proceeding in respect of which any indemnified party
      is or
      could have been a party and indemnity could have been sought hereunder by such
      indemnified 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.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (d)  To
      the
      extent the indemnification provided for in Section 3(a) above is unavailable
      to
      an indemnified party in respect of any losses, liabilities, damages, costs
      or
      expenses referred to therein, then each indemnifying party under such paragraph
      shall contribute to the amount paid or payable by such indemnified party as
      a
      result of such losses, liabilities, damages, costs or expenses in such
      proportion as is appropriate to reflect the relative fault of the respective
      parties, if any, as well as any other relevant equitable considerations in
      connection with the acts, omissions, activity or conduct that resulted in such
      losses, liabilities, damages, costs or expenses. If the loss, liability, damage,
      cost or expense resulted from an untrue statement of material fact or the
      omission to state a material fact, the relative fault of the respective parties
      shall be determined by reference to, among other things, whether the untrue
      statement of a material fact or the omission to state a material fact relates
      to
      information supplied by such parties and the parties’ relative intent,
      knowledge, access to information and opportunity to correct or prevent such
      statement or omission.

     

    (e)  The
      Fund
      Sponsor and Broadpoint agree that it would not be just or equitable if
      contribution pursuant to paragraph (d) above were determined by equal and
      ratable allocation or by any other method of allocation that does not take
      account of the equitable considerations referred to in such
      paragraph.  The amount paid or payable by an indemnified party as a
      result of the losses, claims, damages and liabilities referred to in paragraph
      (d) above shall be deemed to include, subject to the limitations set forth
      above, any legal or other expenses reasonably incurred by such indemnified
      party
      in connection with investigating or defending any such action or claim. The
      remedies provided for in this Section 3 are not exclusive and shall not limit
      any rights or remedies which may otherwise be available to any indemnified
      party
      at law or in equity.

     

    (f)  The
      indemnity and contribution provisions contained in this Section 3 and the
      representations, warranties and other statements of the Fund Sponsor and
      Broadpoint contained in this Agreement shall remain operative and in full force
      and effect regardless of (i) any termination of this Agreement, (ii) any
      investigation made by or on behalf of any of the respective parties or any
      person controlling any of such parties or by or on behalf of these officers
      or
      directors or any person controlling any such parties and (iii) acceptance of
      and
      payment for any of the Interests.

     

    (g)  Any
      indemnification or related obligations of the Fund Sponsor hereunder shall
      be
      paid solely from the assets of the Fund Sponsor, and not from the assets of
      the
      Fund.

     

    4.  Representations
      and Warranties by Broadpoint.  Broadpoint represents and warrants
      to the Fund Sponsor as follows:

     

    (a)  Broadpoint
      is a duly organized corporation, validly existing and in good standing under
      the
      laws of the State of New York, and is qualified to do business in each
      jurisdiction in which the nature or conduct of its business requires such
      qualification and where failure to be so qualified would materially adversely
      affect Broadpoint’s ability to perform its obligations hereunder;

     

    (b)  This
      Agreement has been duly executed and delivered by Broadpoint and constitutes
      the
      legal, valid and binding obligation of Broadpoint, enforceable against
      Broadpoint in accordance with its terms;

     

    (c)  The
      execution, delivery and performance of this Agreement, the incurrence of the
      obligations set forth herein and the consummation of the transactions
      contemplated herein will not constitute a breach of or default under any
      instrument by which Broadpoint is bound or any order, rule or regulation
      applicable to it or of any court or any governmental body or administrative
      agency having jurisdiction over it.

     

    (d)  Broadpoint
      has all licenses and registrations necessary under applicable federal and state
      laws, rules and regulations, including the rules and regulation of any
      self-regulatory organization with competent jurisdiction, to provide the
      services required to be provided by Broadpoint hereunder.  Broadpoint
      shall promptly notify the Fund Sponsor in the event that Broadpoint ceases
      to
      have any such required license or registration and shall thereupon promptly
      suspend any further solicitations of Target Investors hereunder, in which event
      Broadpoint shall only be entitled to earn additional carried interest pursuant
      to Section 7 of that certain Transition Agreement between Broadpoint and the
      Fund Sponsor executed on the date hereof with respect to Target Investors who
      have been solicited by Broadpoint prior to such suspension;

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (e)  In
      connection with Broadpoint’s acting as Placement Agent, Broadpoint shall remain
      in compliance in all material respects at all times with all applicable
      securities laws, and all other applicable laws, rules and regulations of any
      jurisdictions in which Broadpoint solicits offers to purchase Interests;
      and

     

    (f)  The
      foregoing representations and warranties shall be continuing during the term
      of
      this Agreement and if at any time any event shall occur which would make any
      of
      the foregoing incomplete or inaccurate, Broadpoint shall promptly notify the
      Fund Sponsor of the occurrence of such event.

     

    5.  Representations
      and Warranties of the Fund Sponsor.  The Fund Sponsor represents
      and warrants to Broadpoint as follows:

     

    (a)  The
      Fund
      Sponsor is duly organized, validly existing and in good standing under the
      laws
      of the state of Delaware and in good standing as a foreign limited liability
      company in each other jurisdiction in which the nature or conduct of its
      business requires such qualification and the failure to so qualify would
      materially adversely affect its ability to perform its obligations hereunder
      or
      as described in the Memorandum;

     

    (b)  The
      Fund
      Sponsor has all federal and state governmental, regulatory and exchange
      approvals and licenses, and has effected all filings and registrations with
      federal and state governmental and regulatory agencies required to conduct
      its
      business and to act as described in the Memorandum or required to perform its
      obligations as described under this Agreement, and the performance of such
      obligations will not contravene or result in a breach of any provision of the
      constituent documents of any of the Fund Sponsor;

     

    (c)  This
      Agreement has been duly executed and delivered by or on behalf of the Fund
      Sponsor and constitutes the legal, valid, and binding obligation of the Fund
      Sponsor, enforceable against the Fund Sponsor in accordance with its
      terms;

     

    (d)  The
      Fund
      Sponsor shall file or cause to be filed any necessary regulatory filings with
      respect to the Fund at the expense of the Fund, including filing Form D with
      the
      Securities and Exchange Commission and any state securities laws or “blue sky”
filings;

     

    (e)  Since
      the
      date as of which information is given in the Memorandum, except as may otherwise
      be stated in or contemplated by the Memorandum, there has not been any material
      adverse change in the condition (financial or otherwise), business or prospects
      of the Fund, whether or not arising in the ordinary course of
      business;

     

    (f)  Other
      than as disclosed in the Memorandum, there is not pending or, to the best of
      any
      of the Fund Sponsor’s knowledge, threatened any action, suit or proceeding
      before or by any court or other governmental body to which the Fund Sponsor
      is a
      party, or to which any of the assets of the Fund Sponsor is subject, which
      might
      reasonably be expected to result in any material adverse change in the condition
      (financial or otherwise), business or prospects of the Fund
      Sponsor;

     

    (g)  The
      execution and delivery of this Agreement, the incurrence of the obligations
      herein set forth and the consummation of the transactions contemplated herein
      and in the Memorandum will not constitute a breach of, or default under, any
      instrument by which the Fund Sponsor is bound or any order, rule or regulation
      applicable to any of the Fund Sponsor of any court or any governmental body
      or
      administrative agency having jurisdiction over the Fund Sponsor;
      and

     

    (h)  The
      foregoing representations and warranties shall be continuing during the term
      of
      this Agreement and if at any time any event shall occur which would make any
      of
      the foregoing incomplete or inaccurate, the Fund Sponsor shall promptly notify
      Broadpoint of the occurrence of such event.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    6.  Representations
      and Warranties Regarding Fund.  The Fund Sponsor represents and
      warrants to Broadpoint as follows:

     

    (a)  When
      formed, the Fund will be duly established and validly existing in its
      jurisdiction of formation with full power and authority to conduct business
      within the limits of the Fund’s organizational documents as contemplated by and
      reflected in the Memorandum;

     

    (b)  The
      Interests when issued as described in the Fund’s organizational documents will
      be validly issued and the holders thereof will be entitled to the rights of
      subscribers therefor subject to the restrictions and conditions contained in
      the
      Fund’s organizational documents; and

     

    (c)  The
      foregoing representations and warranties shall be continuing during the term
      of
      this Agreement and if at any time any event shall occur which would make any
      of
      the foregoing incomplete or inaccurate, the Fund Sponsor shall promptly notify
      Broadpoint of the occurrence of such event.

     

    7.  Fund
      General Partner.  Promptly following the formation of the general
      partner of the Fund (the “General Partner”), the Fund Sponsor shall cause the
      General Partner to execute a joinder to this Agreement solely for the purpose
      of
      (x) the General Partner making the representations and warranties set forth
      in
      Section 6, (y) the General Partner becoming jointly and severally liable with
      the Fund Sponsor to Broadpoint and the Related Persons for the indemnification
      obligations of the Fund Sponsor under Section 3 (z) the General Partner
      representing, by execution of such joinder, that (1) the General Partner is
      duly
      organized, validly existing and in good standing under the laws of the
      jurisdiction of its formation, (2) the General Partner has full power and
      authority to execute and deliver such joinder and to perform its obligations
      under this Agreement and (3) the performance by the General Partner of its
      obligations under this Agreement will not conflict with or result in a breach
      of
      any of the terms or provisions of, or in the imposition of any lien, charge
      or
      encumbrance upon any of the property or assets of the General Partner pursuant
      to the terms of any indenture, mortgage, deed of trust, loan agreement or other
      agreement or instrument to which any of the property or assets of the General
      Partner are subject, nor will any such action or performance result in a
      violation of the provisions of the General Partner’s organizational documents or
      any law, statute, order, rule or regulation of any court or governmental
      authority or body having jurisdiction over the General Partner.

     

    8.  Placement
      Fees.  The Transition Agreement describes certain consideration
      payable to Broadpoint or its affiliates in connection with the actions
      contemplated by this Agreement.  Other than as described in the
      Transition Agreement, Broadpoint and its affiliates shall not be entitled to
      receive any compensation or reimbursement of expenses in connection with the
      activities contemplated by this Agreement.

     

    9.  Notices.  All
      statements, requests, and notices hereunder shall be in writing or by telegram
      if promptly confirmed in writing, and shall be sufficient in all respects if
      delivered or sent by registered mail:

     

    If
      to
      Broadpoint:

     

    Broadpoint
      Capital, Inc.

    One
      Penn
      Plaza, 42nd
      Floor,

    New
      York,
      New York 10119

    Attn:
      General Counsel

     

    If
      to the
      Fund Sponsor:

     

    FA
      Technology Holding, LLC

    100
      Federal Street, 33rd Floor

    Boston,
      MA  02110-1822

    Attn:
      Chief Financial Officer

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    10.  Binding
      Effect.  This Agreement shall be binding upon, and inure solely to
      the benefit of Broadpoint, the Fund Sponsor and its respective successors and
      assigns, and no other person shall acquire or have any rights under or by virtue
      of this Agreement; provided that, no party may assign its rights and
      obligations hereunder without first receiving the written consent of the other
      party hereto.  No Target Investor shall be deemed a successor or
      assign by reason merely of any purchase of Interests of the Fund.

     

    11.  Amendment.  This
      Agreement may not be amended except by the express written consent of the
      parties hereto.

     

    12.  Governing
      Law.  This Agreement shall be governed by, and construed in
      accordance with, the laws of the State of New York.  If any action or
      proceeding shall be brought by a party to this Agreement or to enforce any
      right
      or remedy under this Agreement, each party hereto hereby consents and will
      submit to the jurisdiction of the courts of the State of New York or any Federal
      court sitting in the County, City and State of New York.  Any action
      or proceeding brought by any party to this Agreement to enforce any right,
      assert any claim or obtain any relief whatsoever in connection with this
      Agreement shall be brought by such party exclusively in the courts of the State
      of New York or any Federal court sitting in the County, City and State of New
      York.

     

    13.  Counterparts.  This
      Agreement may be executed by any one or more of the parties hereto in any number
      of counterparts (including by way of facsimile), each of which shall be deemed
      to be an original, but all such respective counterparts shall together
      constitute one and the same instrument.

     

    

     

    

     

    

     

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    IN
      WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
      by
      their respective officers thereunto as of the date first written
      above.

     

    

     

                                 
BROADPOINT
      CAPITAL, INC.

     

    By:
      /s/
      Lee Fensterstock

    Name:
      Lee
      Fensterstcok

    Title:   Chief
      Executive Officer

     

    FA
      TECHNOLOGY HOLDING, LLC

     

    By:
      /s/
      Gregory A. Hulecki

    Name:
      Gregory A. Hulecki

    Title:   Member

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