Document:

Exhibit
4.6

 

REGISTRATION RIGHTS AGREEMENT

 

dated as of

 

JUNE 3, 2002

 

between

 

GFI GROUP INC.

 

and

 

THE PURCHASERS OF SERIES C
REDEEMABLE CONVERTIBLE

PREFERRED STOCK LISTED ON THE SIGNATURE PAGES HERETO

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I DEFINITIONS

  	
   

  
	
  Section
  1.1. Definitions

  	
   

  
	
   

  	
   

  
	
  ARTICLE II REGISTRATION
  RIGHTS

  	
   

  
	
  Section
  2.1. Securities Subject to this Agreement

  	
   

  
	
  Section
  2.2. Demand Registration

  	
   

  
	
  Section
  2.3. Piggyback Registration

  	
   

  
	
  Section
  2.4. Form S-3

  	
   

  
	
  Section
  2.5. Registration Procedures

  	
   

  
	
  Section
  2.6. Holder’s Cooperation

  	
   

  
	
  Section
  2.7. Certain Rights of Holders

  	
   

  
	
  Section
  2.8. Registration Expenses

  	
   

  
	
  Section
  2.9. Indemnification; Contribution

  	
   

  
	
  Section
  2.10. Participation in Underwritten Registrations

  	
   

  
	
  Section
  2.11. Selection of Underwriters

  	
   

  
	
  Section
  2.12. Market Stand-Off

  	
   

  
	
  Section
  2.13. Grant and Transfer of Registration Rights

  	
   

  
	
  Section
  2.14. Rule 144

  	
   

  
	
  Section
  2.15. Sale of Preferred Stock to Underwriter

  	
   

  
	
  Section
  2.16. Changes in Preferred Stock or Common Stock

  	
   

  
	
   

  	
   

  
	
  ARTICLE III
  MISCELLANEOUS

  	
   

  
	
  Section
  3.1. Termination

  	
   

  
	
  Section
  3.2. Entire Agreement

  	
   

  
	
  Section
  3.3. Successors and Assigns

  	
   

  
	
  Section
  3.4. Notices

  	
   

  
	
  Section
  3.5. Headings

  	
   

  
	
  Section
  3.6. Counterparts

  	
   

  
	
  Section
  3.7. Choice of Law; Jurisdiction; Venue

  	
   

  
	
  Section
  3.8. Specific Enforcement

  	
   

  
	
  Section
  3.9. Amendment and Waivers

  	
   

  
	
   

  	
   

  
	
  Title:

  	
   

  

 

 

REGISTRATION RIGHTS AGREEMENT

 

This
REGISTRATION RIGHTS AGREEMENT (the “Agreement”) is dated as of June 3, 2002
between GFI Group Inc., a Delaware corporation (the “Company”), and the
stockholders of the Company listed on the signature pages hereto (each a
“Purchaser”, and collectively, the “Purchasers”) owning the Company’s Series C
Convertible Preferred Stock, $0.01 par value per share (the “Preferred Stock”).

 

The
parties hereto agree as follows:

 

ARTICLE I

 

DEFINITIONS

 

Section 1.1. Definitions. The
following terms, as used herein, have the following meanings.

 

“Agreement”
shall have the meaning set forth in the Preamble hereto.

 

“Advent”
means Advent International Corporation, a Delaware corporation.

 

“Advent
Stockholder” means any stockholder of the Company that is an investment fund
that is directly or indirectly controlling, controlled by or under common
control with Advent or for which Advent is the investment advisor (with full
authority to bind). For the purposes of this definition, “control” means the
possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of such fund, whether through the ownership
of voting securities, by contract or otherwise, and the terms “controlling” and
“controlled” have meanings correlative to the foregoing.

 

“Board”
means the Board of Directors of the Company.

 

“Business
Day” means any day except a Saturday, Sunday or other day on which banks in New
York, New York are authorized by law to close.

 

“Closing
Date” shall mean the Closing Date of the Purchase Agreement.

 

“Commission”
means the Securities and Exchange Commission.

 

“Common
Stock” means the Class B common stock of the Company, par value $0.01 per
share.

 

“Company”
shall have the meaning set forth in the Preamble hereto.

 

“Company
Registration Statement” means the registration statements of the Company
relating to the registration for sale of shares of the Company’s Common Stock,
including the Prospectus included therein, all amendments and supplements
thereto (including post-effective amendments) and all exhibits and material
incorporated by reference therein.

 

 

“Demand
Registration Statement” means the Registration Statement of the Company
relating to the registration for sale of shares of the Company’s Common Stock
contemplated by Section 2.2, including the Prospectus included therein, all
amendments and supplements thereto (including post-effective amendments) and
all exhibits and material incorporated by reference therein.

 

“Effective
Time” means the date of effectiveness of any Registration Statement.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder or in connection therewith.

 

“Holders”
has the meaning given to it in Section 2.1(b) hereof.

 

“NASD”
means the National Association of Securities Dealers, Inc.

 

“Person”
means any individual, estate, legal representative, trust, partnership, limited
liability company, association, organization, firm, company or corporation,
joint venture, any other business entity unincorporated or incorporated, any
nation or any state or territory thereof or any public officer, agency, board
or instrumentality thereof.

 

“Preferred
Stock” shall have the meaning set forth in the Preamble hereto.

 

“Prospectus”
means the prospectus included in any Registration Statement, as amended or
supplemented by any prospectus supplement and by all other amendments thereto,
including post-effective amendments, and all material incorporated by reference
into such Prospectus.

 

“Purchase
Agreement” means that certain Stock Purchase Agreement dated as of April 2,
2002, as amended, modified or supplemented from time to time.

 

“Purchaser”
shall have the meaning set forth in the Preamble hereto.

 

“Qualified
IPO” means a firm commitment underwritten initial public offering of the
Corporation with a nationally recognized underwriter that is pursuant to an
effective registration statement under the Securities Act of 1933, as amended,
covering the offer and sale of Common Stock for the account of the Corporation
(other than pursuant to a registration on Form S-4 or Form S-8 or any similar
or successor form) on either the New York Stock Exchange or the Nasdaq National
Market in which (x) the public offering price per share is no less than
$0.961166 (as adjusted for stock splits, stock combinations and
recapitalizations) multiplied by one and one-half (1.5) and (y) the gross cash
proceeds to the Company (before underwriting discounts, commissions and fees)
are at least $50 million.

 

“Registrable
Securities” means any Securities until the earlier of the date on which (i) a
registration statement covering such Securities has been declared effective by
the Commission and such Securities have been disposed of pursuant to such
effective registration statement, (ii) such Securities are sold under
circumstances in which all the applicable conditions of Rule 144 (or any
similar provisions then in force) under the Securities Act are met, or such
Securities may be sold in a single transaction under Rule 144(k) (or any
similar provision then in

 

2

 

force) under the Securities Act, and are freely tradable
after such sale by the transferee, and the Company has delivered a new
certificate or other evidence of ownership for such Securities not bearing a
legend restricting further transfer and such Securities may be resold without
registration under the Securities Act, or (iii) such Securities shall have
ceased to be outstanding.

 

“Registration
Statements” means any Company Registration Statement, any S-3 Registration
Statement and the Demand Registration Statement.

 

“S-3
Registration Statement” means the Registration Statements of the Company
relating to the registration for sale of shares of the Company’s Common Stock
contemplated by Section 2.4, including the Prospectus included therein, all
amendments and supplements thereto (including post-effective amendments) and
all exhibits and material incorporated by reference therein.

 

“Securities”
means the Subject Shares (as defined below).

 

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and
regulations promulgated thereunder or in connection therewith.

 

“Subject
Shares” mean (i) shares of Common Stock issued or issuable upon conversion of
the Preferred Stock, (ii) shares of Common Stock issued or issuable pursuant to
Section 2.03 of the Purchase Agreement and (iii) any equity securities issued
as a distribution with respect to or in exchange for or in replacement for any
of the shares referred to in clause (i) or (ii).

 

As
used in this Agreement, words in the singular include the plural, and in the
plural include the singular.

 

ARTICLE II

 

REGISTRATION RIGHTS

 

Section 2.1. Securities Subject to this
Agreement. The Subject Shares are entitled to the benefits of this
Agreement for so long as they remain Registrable Securities.

 

(b)           A Person is deemed to be a holder of
such Registrable Securities (each, a “Holder”) whenever such Person is the
registered holder of such Registrable Securities on the Company’s books and
records.

 

Section 2.2. Demand Registration. At
any time after the 180th day following the effective date of a registration statement
for a Qualified IPO, the Holders of at least a majority of the then outstanding
Registrable Securities that have an aggregate market price of at least $5
million at the time of the request may make a written request to the Company to
register their Registrable Securities (each of such Holders making such request
being referred to hereinafter as the “Initiating Holder”), under the Securities
Act and under the securities or “blue sky” laws of any jurisdiction reasonably
designated by such Initiating Holder (“Demand Registration”), which may include
all or any portion of the Registrable Securities held by any Initiating Holder
unless such underwriters advise that those additional shares should be excluded
(in which case such

 

3

 

Registrable Securities shall be excluded in accordance with
the provisions contained herein). Within ten (10) Business Days after receipt
by the Company of such a written registration request, the Company shall
promptly give written notice to all other Holders of the proposed demand
registration, and such other Holders shall have the right to join in the
proposed registration and sale, upon written request to the Company within ten
(10) Business Days after receipt of such notice from the Company (such
participating Holders to also be “Initiating Holders”). At the request of the
Holders requesting registration, the Company shall cause each offering pursuant
to this Section to be managed, on a firm commitment basis, by a recognized regional
or national underwriter selected by the such Holders and approved by the
Company, such approval not to be unreasonably withheld. The Company shall use
its reasonable efforts to cause such Demand Registration to become effective
not later than three (3) months after it receives an initial request for a
Demand Registration and to remain continuously effective for a period of at
least three (3) months from the effective date of such Demand Registration
Statement or such shorter period which will terminate when all of the
Registrable Securities covered by the Demand Registration Statement have been
sold pursuant thereto. The Company shall not be required to effect more than
one Demand Registration at the request of the Purchasers; provided, however,
that any such request shall be deemed satisfied only when a registration
statement covering not less than sixty-six percent (66%) of the Registrable
Securities specified in notices received as aforesaid, for sale in accordance
with the method of disposition specified by the Holders, has become effective.
If at the time of any request to register Registrable Securities pursuant to
this Section 2.2, the Company is engaged in, or has fixed plans to engage in
(demonstrated by previously adopted resolutions of the Board to such effect),
within three (3) months of the time of such request, a registered public
offering or is engaged in any other significant financing, acquisition, joint
venture or other transaction which, in the good faith determination of the
Board, would be adversely affected by the requested registration to the
material detriment of the Company, then the Company may at its option direct
that such request be delayed for a reasonable period not in excess of (i) one
hundred eighty (180) days from the effective date of such offering or (ii) the
date of completion or termination of such other material activity, as the case
may be, such right to delay a request under this Section 2.2 or under Section
2.4(c) to be exercised by the Company not more than once in any twelve-month or
365-day period. The Company shall promptly notify in writing the Holders
requesting registration of any decision not to effect any such request for
registration pursuant to this Section which notice shall set forth in
reasonable detail the reason for such decision and shall include an undertaking
by the Company promptly to notify such Holders as soon as a demand registration
may be effected. Notwithstanding the above, the Company shall not be required
to effect any Demand Registration within three (3) months after the effective
date of any other Registration Statement of the Company. If a Demand
Registration Statement involves an underwritten offering and the managing
underwriter advises the Company in writing that, in its opinion, the number of
securities requested to be included in such Demand Registration Statement
exceeds the number which can be sold in such offering without adversely
affecting the offering, the Company will include in such Demand Registration
Statement the number of such securities which the Company is so advised can be
sold in such offering without adversely affecting the offering, determined as
follows:

 

(a)           first, for each holder initiating the
Demand Registration, each holder electing to participate in such Demand Registration
who was otherwise permitted to initiate (alone or together with other
shareholders) such Demand Registration under this

 

4

 

Agreement
and each of the holders of securities issued or issuable upon conversion of the
Preferred Stock (each, a “Series C Holder”), if any, such number of securities
as is determined by multiplying (i) the securities able to be registered as
determined by the managing underwriter, by (ii) the fraction of (A) the aggregate
number of securities of the Company that such party proposes to include in such
registration divided by (B) the total number of securities proposed to be sold
in such offering by all holders initiating the Demand Registration, all holders
electing to participate in such Demand Registration who were otherwise
permitted to initiate (alone or together with other shareholders) such Demand
Registration under this Agreement and each of the Series C Holders;

 

(b)           second, for each remaining holder of
the Company’s securities who holds contractual piggyback registration rights,
other than the holders described above in clause (a), if any, the fraction of
such holder’s securities proposed to be registered which is obtained by
dividing (i) the remaining number of the securities of the Company that such
holder proposes to include in such registration by (ii) the total remaining
number of securities proposed to be sold in such offering by such holders; and

 

(c)           third, for the Company and each
remaining holder of the Company’s securities other than the holders described
above in clauses (a) and (b), if any, who are permitted by the Company to so
participate, such number of securities as is determined by multiplying (i) the
remaining securities able to be registered as determined by the managing
underwriter, by (ii) the fraction of (A) the remaining number of the securities
of the Company that the Company and such holder proposes to include in such
registration divided by (B) the total remaining number of securities proposed
to be sold in such offering by the Company and all such remaining holders.

 

Section 2.3.            Piggyback Registration.

 

(a)           At any time that the Company proposes
to file a Company Registration Statement, either for its own account or for the
account of a stockholder or stockholders, covering the disposition of
securities having an aggregate disposition price of at least $1.0 million, the
Company shall give the Holders written notice of its intention to do so and of
the intended method of sale (the “Registration Notice”) within a reasonable
time prior to the anticipated filing date of the Company Registration Statement
effecting such Company Registration. Each Holder may request inclusion of all
of such Holder’s Registrable Securities in such Company Registration by
delivering to the Company, within ten (10) Business Days after receipt of the
Registration Notice, a written notice (the “Piggyback Notice”) stating the
number of Registrable Securities proposed to be included and that such shares
are to be included in any underwriting only on the same terms and conditions as
the shares of Common Stock otherwise being sold through underwriters under such
Registration Statement. The Company shall use its reasonable efforts to cause
all Registrable Securities specified in the Piggyback Notice to be included in
the Registration Statement and any related offering, all to the extent
requisite to permit the sale by the Holders of such Registrable Securities in
accordance with the method of sale applicable to the other shares of Common
Stock included in such Registration Statement; provided,  however,
that if, at any time after giving written notice of its intention to register
any securities and prior to the effective date of a Company Registration
Statement filed in connection with such registration, the Company shall
determine for any reason not to register or to delay

 

5

 

registration of such securities, the Company may, at its
election, give written notice of such determination to each Holder of
Registrable Securities and, thereupon:

 

(i)            in the case of a determination not
to register, shall be relieved of its obligation to register any Registrable
Securities in connection with such registration (but not from its obligation to
pay the Registration Expenses in connection therewith), and

 

(ii)           in the case of a delay in
registering, shall be permitted to delay registering any Registrable Securities
for the same period as the delay in registering such other securities.

 

(b)           The Company’s obligation to include
Registrable Securities in a Company Registration Statement pursuant to Section
2.3(a) shall be subject to the following limitations:

 

(i)            the Company shall not be required to
include any Registrable Securities in the Registration Statement filed to
register its Qualified IPO;

 

(ii)           The Company shall not be obligated to
include any Registrable Securities in a registration statement filed on Form
S-4, Form S-8 or such other similar successor forms then in effect under the
Securities Act; and

 

(iii)          If a Company Registration Statement
involves an underwritten offering and the managing underwriter advises the
Company in writing that, in its opinion, the number of securities requested to
be included in such Company Registration Statement exceeds the number which can
be sold in such offering without adversely affecting the offering, the Company
will include in such Company Registration Statement the number of such
securities which the Company is so advised can be sold in such offering without
adversely affecting the offering, determined as follows:

 

(I)            In the event the Company initiated
such registration:

 

(1)           first, the securities proposed by the
Company to be sold for it own account;

 

(2)           second, for each Series C Holder, if
any, such number of securities as is determined by multiplying (a) the
remaining securities able to be registered as determined by the managing
underwriter, by (b) the fraction of (i) the remaining number of the securities
of the Company that such Series C Holder proposes to include in such
registration divided by (ii) the total remaining number of securities proposed
to be sold in such offering by all Series C Holders;

 

(3)           third, for each remaining holder of
the Company’s securities who holds contractual piggyback registration rights,
other than the holders described above in clauses (1) and (2) (including the
Holders of Registrable Securities hereunder), if any, the fraction of such
holder’s securities proposed to be registered which is

 

6

 

obtained by dividing (i) the remaining number of the
securities of the Company that such holder proposes to include in such
registration by (ii) the total remaining number of securities proposed to be
sold in such offering by such holders; and

 

(4)           fourth, for each remaining holder of
the Company’s securities, other than the holders described above in clauses
(1), (2) and (3), if any, who are permitted by the Company to so participate,
such number of securities as is determined by multiplying (a) the remaining
securities able to be registered as determined by the managing underwriter, by
(b) the fraction of (i) the number of the securities of the Company that such
holder proposes to include in such registration divided by (ii) the total
number of securities proposed to be sold in such offering by all such remaining
holders.

 

(II)           In the event that a shareholder other
than a Series C Holder initiated such registration pursuant to its only
contractual demand registration right (and such shareholder was not permitted
(alone or together with other shareholders) to exercise a previously exercised
contractual demand registration right);

 

(1)           first, in the event there are Series
C Holders electing to participate in the demand registration, then

 

a.             for each holder initiating the
demand registration and each holder electing to participate in such demand
registration who was otherwise permitted to initiate (alone or together with
other shareholders) such demand registration, such number of securities as is
determined by multiplying (i) seventy-five percent (75%) of the number of
securities able to be registered as determined by the managing underwriter, by
(ii) the fraction of (A) the aggregate number of securities of the Company that
such party proposes to include in such registration divided by (B) the total
number of securities proposed to be sold in such offering by all holders
initiating the demand registration and all holders electing to participate in
such demand registration who were otherwise permitted to initiate (alone or
together with other shareholders) such demand registration; and

 

b.             for each Series C Holder, such
number of securities as is determined by multiplying (i) twenty-five percent
(25%) of the number of securities able to be registered as determined by the
managing underwriter, by (ii) the fraction of (A) the aggregate number of
securities of the Company that such party proposes to include in such
registration divided by (B) the total number of securities proposed to be sold
in such offering by all Series C Holders; provided, that in the event that the
allocation of seventy-five percent (75%) of the number of securities able to be
registered in subclause (a) or twenty-five percent (25%) of the number of
securities able to be registered in subclause (b) exceeds the number of
securities requested to be registered by the applicable parties under either
such subclause, then such excess securities shall be allocated to the parties
of the other subparagraph (allocated on an individual basis pursuant to the
same formula described therein) until all of the shares requested to be
registered by such parties are so included;

 

(2)           second, for each holder of the
Company’s securities who holds contractual piggyback registration rights, other
than the holders described above in clause (1), if any, the fraction of such
holder’s securities proposed to be

 

7

 

registered which is obtained by dividing (i) the remaining
number of the securities of the Company that such holder proposes to include in
such registration by (ii) the total remaining number of securities proposed to
be sold in such offering by such holders; and

 

(3)           third, for the Company and each
remaining holder of the Company’s securities, other than the holders described
above in clauses (1) and (2), if any, who are permitted by the Company to so
participate, such number of securities as is determined by multiplying (a) the
remaining securities able to be registered as determined by the managing
underwriter, by (b) the fraction of (i) the number of the securities of the
Company that such holder proposes to include in such registration divided by
(ii) the total remaining number of securities proposed to be sold in such
offering by all such remaining holders.

 

(III)         In the event that a shareholder other
than a Series C Holder initiated such registration pursuant to a contractual
demand registration right and such shareholder, either alone or together with
other shareholders, has at least one (1) additional contractual demand
registration right or was permitted (alone or together with other shareholders)
to exercise a previously exercised contractual demand registration right:

 

(1)           first, for each holder initiating the
demand registration, each holder electing to participate in such demand
registration who was otherwise permitted to initiate (alone or together with
other shareholders) such demand registration and each of the Series C Holders,
if any, such number of securities as is determined by multiplying (i) the
securities able to be registered as determined by the managing underwriter, by
(ii) the fraction of (A) the aggregate number of securities of the Company that
such party proposes to include in such registration divided by (B) the total number
of securities proposed to be sold in such offering by all holders initiating
the demand registration, each holder electing to participate in such demand
registration who was otherwise permitted to initiate (alone or together with
other shareholders) such demand registration and each of the Series C Holders,
if any;

 

(2)           second, for each remaining holder of
the Company’s securities who holds contractual piggyback registration rights,
other than the holders described above in clause (1), if any, the fraction of
such holder’s securities proposed to be registered which is obtained by
dividing (i) the remaining number of the securities of the Company that such
holder proposes to include in such registration by (ii) the total remaining
number of securities proposed to be sold in such offering by such holders; and

 

(3)           third, for the Company and each
remaining holder of the Company’s securities other than the holders described
above in clauses (1) and (2), if any, who are permitted by the Company to so
participate, such number of securities as is determined by multiplying (i) the
remaining securities able to be registered as determined by the managing
underwriter, by (ii) the fraction of (A) the remaining number of the securities
of the Company that the Company and such holder proposes to include in such
registration divided by (B) the total remaining number of securities proposed
to be sold in such offering by the Company and all such remaining holders.

 

8

 

Section 2.4. Form S-3. The Company
shall use its reasonable efforts to qualify, and to thereafter remain
qualified, for registration on Form S-3 or its successor form. After the
Company has qualified for the use of Form S-3, Holders of twenty percent (20%)
of the then outstanding Registrable Securities shall have the right at any time
to request registrations on Form S-3 (such requests shall be in writing and
shall state the number of shares of Registrable Securities to be disposed of
and the intended method of disposition of shares by such Holders), subject only
to the following:

 

(a)           The Company shall not be required to
file an S-3 Registration Statement pursuant to this Section 2.4 within ninety
(90) days after the effective date of any registration referred to in Sections
2.2  or 2.3 above.

 

(b)           The Company shall not be required to
file a registration statement pursuant to this Section 2.4 unless the Holder or
Holders requesting registration propose to dispose of shares of Registrable
Securities having an aggregate disposition price (before deduction of
underwriting discounts and expenses of sale) of at least $3,000,000.

 

(c)           If at the time of any request to
register Registrable Securities pursuant to this Section 2.4, the Company is
engaged in, or has fixed plans to engage in (demonstrated by previously adopted
resolutions of the Board to such effect) within three months of the time of
such request, a registered public offering or is engaged in any other
significant action which, in the good faith determination of the Board, would
be adversely affected by the requested registration to the material detriment
of the Company, then the Company may at its option direct that such request be
delayed for a reasonable period not in excess of one hundred eighty (180) days
from the effective date of such offering or the date of completion of such
other material activity, as the case may be, such right to delay a request
under this Section to be exercised by the Company not more than once in any
one-year period.

 

(d)           Only two registrations may be
required under this Section 2.4 and only one registration may be required
during any twelve-month period provided that each Holder participated or was
notified in writing of its opportunity to participate.

 

The
Company shall give written notice to all Holders of Registrable Securities of
the receipt of a request for registration pursuant to this Section 2.4 and
shall provide a reasonable opportunity for other Holders to participate in the
registration. At the written request of the Holders requesting such
registration, such registration shall be for a delayed or continuous offering
under Rule 415 under the Securities Act. Subject to the provisions of Section
2.5, the Company will use its reasonable efforts to effect promptly the registration
of all shares of Registrable Securities on Form S-3 to the extent requested
pursuant to this Section 2.4 by the Holder or Holders of such Registrable
Securities for purposes of disposition.

 

Section 2.5. Registration Procedures.
If any registration pursuant to Sections 2.3 or 2.4 is for an underwritten
offering, the following terms shall apply to all participants in such offering;
the right of any Holder to registration pursuant to Section 2.3 or 2.4 shall be

 

9

 

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. All Holders proposing to distribute
their securities through such underwriting shall (together with the Company and
the other Holders distributing their securities through such underwriting)
enter into an underwriting agreement in customary form with the underwriter or
underwriters selected for such underwriting. If any Holder disapproves of the
terms of any such underwriting, he may elect to withdraw therefrom by written
notice to the Company and the underwriter. If, by the withdrawal of such
Registrable Securities, a greater number of Registrable Securities held by
other Holders may be included in such registration (up to the limit imposed by
the underwriters), the Company shall offer to all Holders who have included
Registrable Securities in the registration the right to include additional
Registrable Securities in the same proportion and with the same priorities used
in determining the limitation as set forth above. Any Registrable Securities
excluded or withdrawn from such underwriting shall be withdrawn from such
registration.

 

In
connection with any Registration Statement and any Prospectus required by any
section of this Agreement to permit the sale or resale of Registrable
Securities, the Company shall:

 

(a)           prepare and file with the Commission
a registration statement with respect to such shares and use its commercially
reasonable efforts to cause such registration statement to become effective as
soon as reasonably practicable thereafter (provided that before filing a
registration statement or prospectus or any amendments or supplements thereto,
the Company shall furnish counsel for such Holder with copies of all such
documents proposed to be filed);

 

(b)           use its commercially reasonable
efforts to prepare and file with the Commission such amendments and
post-effective amendments to such Registration Statement as may be necessary to
keep such Registration Statement effective until the earlier of such time as
all of such securities have been disposed of in accordance with the intended
methods of disposition by the seller or sellers thereof set forth in such
Registration Statement or if such Registration Statement is a Demand
Registration Statement, for the applicable period set forth in Section 2.2
herein; provided, such period shall be extended, if necessary, to keep the
registration statement effective for a period of time equal to the period the
Holder refrains from selling any securities included in the registration at the
request of the underwriter or at the request of the Company pursuant to the
terms hereof;

 

(c)           cause the Prospectus to be
supplemented by any required Prospectus supplement, and as so supplemented to
be filed pursuant to Rule 424 under the Securities Act, and to comply fully
with the applicable provisions of Rules 424 and 430A, as applicable, under the
Securities Act in a timely manner; and comply with the provisions of the
Securities Act with respect to the disposition of all securities covered by
such Registration Statement during the applicable period in accordance with the
intended method or methods of distribution by the sellers thereof set forth in such
Registration Statement or supplement or the Prospectus;

 

10

 

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

 

(e)           promptly furnish to such Holder
covered by any Registration Statement, and each underwriter, if any, without
charge, such number of copies of such Registration Statement, each amendment
and supplement thereto, the Prospectus included in such registration statement
(including each preliminary prospectus), and such other documents as such
Holder may reasonably request;

 

(f)            enter into such customary agreements
and take all such other reasonable action in connection therewith (including those
reasonably requested by the selling Holders or the underwriter(s), if any)
required in order to expedite or facilitate the disposition of such Registrable
Securities pursuant to such Registration Statement, including, but not limited
to, dispositions pursuant to an underwritten registration, and in such
connection:

 

(i)            make such representations and
warranties to the selling Holders and underwriter(s), if any, in form,
substance and scope as are customarily made by issuers to underwriters in
underwritten offerings (whether or not sales of securities pursuant to such
Registration Statement are to be to an underwriter(s)) and confirm the same if
and when requested;

 

(ii)           obtain opinions of counsel to the
Company (which counsel and opinions, in form and substance, shall be reasonably
satisfactory to the selling Holders and the underwriter(s), if any, and their
respective counsel) addressed to each selling Holder and underwriter, if any,
covering the matters customarily covered in opinions requested in underwritten
offerings (whether or not sales of securities pursuant to such Registration
Statement are to be made to an underwriter(s)) and dated the date of
effectiveness of any

 

11

 

Registration Statement (and, in the case of any underwritten
sale of securities pursuant to such Registration Statement, each closing date
of sales to the underwriter(s) pursuant thereto);

 

(iii)          use reasonable efforts to obtain
comfort letters dated the date of effectiveness of any Registration Statement
(and, in the case of any underwritten sale of securities pursuant to such
Registration Statement, each closing date of sales to the underwriter(s)
pursuant thereto) from the independent certified public accountants of the
Company addressed to each selling Holder and underwriter, if any, such letters
to be in customary form and covering matters of the type customarily covered in
comfort letters in connection with underwritten offerings (whether or not sales
of securities pursuant to such Registration Statement are to be made to an
underwriter(s));

 

(iv)          provide for the indemnification
provisions and procedures of Section 2.6 hereof with respect to selling Holders
and the underwriters), if any, and;

 

(v)           deliver such documents and certificates
as may be reasonably requested by the selling Holders or the underwriter(s), if
any, and which are customarily delivered in underwritten offerings (whether or
not sales of securities pursuant to such Registration Statement are to be made
to an underwriter(s)), with such documents and certificates to be dated the
date of effectiveness of any Registration Statement.

 

The
actions required by clauses (i) through (v) above shall be done at each closing
under such underwriting or similar agreement, as and to the extent required
thereunder, and if at any time the representations and warranties of the
Company contemplated in clause (i) above cease to be true and correct, the
Company shall so advise the underwriter(s), if any, and each selling Holder
promptly, and, if requested by such Person, shall confirm such advice in
writing;

 

(g)           prior to any public offering of
Registrable Securities, cooperate with the selling Holders, the underwriter(s),
if any, and their respective counsel in connection with the registration and
qualification of the Registrable Securities under the securities or Blue Sky
laws of such U.S. jurisdictions as the selling Holders or underwriter(s), if
any, may reasonably request in writing by the time any Registration Statement
is declared effective by the Commission, and do any and all other acts or
filings necessary or advisable to enable disposition in such U.S. jurisdictions
of the Registrable Securities covered by any Registration Statement and to file
such consents to service of process or other documents as may be necessary in
order to effect such registration or qualification; provided, however,
that the Company shall not be required to register or qualify as a foreign
corporation in any jurisdiction where it is not then so qualified or as a
dealer in securities in any jurisdiction where it would not otherwise be
required to register or qualify but for this Section 2.4, or to take any action
that would subject it to the service of process in suits or to taxation, in any
jurisdiction where it is not then so subject;

 

(h)           in connection with any sale of
Registrable Securities that will result in such securities no longer being
Registrable Securities, cooperate with the selling Holders and the
underwriter(s), if any, to facilitate the timely preparation and delivery of
certificates representing Registrable Securities to be sold and not bearing any
restrictive legends;

 

12

 

and enable such Registrable Securities to be in such
denominations and registered in such names as the Holders or the
underwriter(s), if any, may request at least two (2) Business Days prior to any
sale of Registrable Securities made by such underwriters;

 

(i)            use its reasonable efforts to cause
the disposition of the Registrable Securities covered by any Registration
Statement to be registered with or approved by such other U.S. governmental
agencies or authorities as may be necessary to enable the seller or sellers
thereof or the underwriter(s), if any, to consummate the disposition of such
Registrable Securities;

 

(j)            if any fact or event contemplated by
Section 2.4(b) shall exist or have occurred, use reasonable efforts to prepare
a supplement or post-effective amendment to any Registration Statement or
related Prospectus or any document incorporated therein by reference or file
any other required document so that, as thereafter delivered to the purchasers
of Registrable Securities, the Prospectus will not contain an untrue statement
of a material fact or omit to state any material fact necessary to make the
statement therein not misleading;

 

(k)           cooperate and assist in the
performance of any due diligence investigation by any underwriter (including
any “qualified independent underwriter”) that is required to be retained in accordance
with the rules and regulations of the NASD, and use its reasonable efforts to
cause any Registration Statement to become effective and approved by such U.S.
governmental agencies or authorities as may be necessary to enable the Holders
selling Registrable Securities to consummate the disposition of such
Registrable Securities;

 

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

 

(m)          provide a CUSIP number for all
Registrable Securities, to the extent required, not later than the effective
date of any Registration Statement;

 

(n)           provide a transfer agent and
registrar for all such shares not later than the effective date of such
registration statement;

 

(o)           use its reasonable efforts to list,
not later than the effective date of such Registration Statement, all
Registrable Securities covered by such Registration Statement on the New York
Stock Exchange, Nasdaq National Market or any other trading market on which any
Common Stock of the Company is then admitted for trading, and

 

(p)           provide reasonably promptly to each
Holder covered by any Registration Statement upon request each document filed
with the Commission pursuant to the requirements of Section 13 and Section 14
of the Exchange Act.

 

13

 

Section 2.6. Holder’s Cooperation

 

(a)           Holders of Registrable Securities
desiring to sell in any Registration Statement will furnish to the Company such
information as the Company may reasonably require from such Holder in
connection with the Registration Statement (and the prospectus included
therein). No Holder may participate in any offering unless such Holder (i) agrees
to sell his Registrable Securities to be sold on the basis provided in any
agreement governing the offering and (ii) completes and executes all customary
questionnaires, indemnities (consistent with the indemnities set forth in
Section 2.9 below), and other documents reasonably required in connection with
the offering. No Holder of Registrable Securities may include any of its
Registrable Securities in any Registration Statement pursuant to this Agreement
unless and until such Holder furnishes to the Company in writing, within ten
(10) Business Days after receipt of a written request therefore, such
information specified in Item 507 of Regulation S-K under the Securities Act or
such other information as the Company may reasonably request and as is customary
for use in connection with such Registration Statement or Prospectus or
preliminary Prospectus included therein and in any application to the NASD.
Each Holder as to which such Registration Statement is being effected agrees to
furnish promptly to the Company all information required to be disclosed in
order to make all information previously furnished to the Company by such
Holder not materially misleading.

 

(b)           Failure of a Holder to furnish the
information and agreements described in this Agreement shall not affect the
obligations of the Company under this Agreement to remaining Holders who do
furnish such information and agreements unless in the reasonable opinion of
counsel to the Company such failure impairs or may impair the legality of or
materially impairs or may materially impair the viability of the offering or
the registration or the underlying offering.

 

(c)           The Holders holding shares included
in the registration will not effect sales thereof (or deliver a prospectus to
any purchaser) after receipt of written notice from the Company to suspend
sales to permit the Company to correct or update a registration statement or
prospectus until the Company advises the Holder that the registration statement
has been amended or that conditions no longer exist which would require such
suspension, provided that the Company shall use its reasonable efforts to lift
any such suspension within 30 days of its imposition. At the end of the period
during which the Company is obligated to keep the registration statement
current and effective as described in Section 2.2, the Holders holding
Registrable Securities included in the registration shall discontinue sales of
shares pursuant to such registration statement upon receipt of notice from the
Company of its intention to remove from registration the Registrable Securities
covered by such registration statement that remain unsold, and such Holders
shall notify the Company of the number of such shares registered that remain
unsold immediately upon receipt of such notice from the Company.

 

(d)           In connection with any offering, each
Holder who intends to sell Registrable Securities in any Registration
Statement, will not use any offering document, offering circular or other
offering materials with respect to the offer or sale of Registrable Securities,
other than the prospectuses provided by the Company and any documents
incorporated by reference therein.

 

14

 

Section 2.7. Certain Rights of Holders.
The Company will not file any registration statement under the Securities Act
which refers to any Holder of Registrable Securities by name or otherwise
without the prior approval of such Holder, unless required by law, which
consent shall not be unreasonably withheld or delayed.

 

Section 2.8. Registration Expenses.

 

(a)           Subject to the provisions of Section
2.8(b) below, all expenses incident to the Company’s performance of or
compliance with this Agreement with regard to filing the Demand Registration
Statement pursuant to Section 2.2, all piggyback registrations pursuant to
Section 2.3 and one S-3 Registration Statement initiated by the Holders per
twelve-month period, up to a maximum of two S-3 Registration Statements,
pursuant to Section 2.4, will be borne by the Company, regardless of whether a
Registration Statement becomes effective, including without limitation: (i) all
registration and filing fees and expenses (including filings made with the NASD
and reasonable counsel fees in connection therewith); (ii) all reasonable fees
and expenses of compliance with federal securities and state Blue Sky or
securities laws (including all reasonable fees and expenses of one counsel to
the underwriter(s) in any underwriting) in connection with compliance with
state Blue Sky or securities laws; (iii) all expenses of printing, messenger
and delivery services and telephone calls; (iv) all “road show” expenses; (v)
all fees and disbursements of counsel for the Company and one counsel for the
Holders who shall be selected (x) by Advent if any Advent Stockholder is a
Holder participating as a selling stockholder pursuant to a Registration
Statement and such Advent Stockholders in the aggregate hold at least 25% of
the Registrable Securities being registered under such Registration Statement
or (y) if an Advent Stockholder is not participating as a selling stockholder
or does not hold at least 25% of the Registrable Securities being registered
pursuant to a Registration Statement, by the Holders of a majority of the
shares of Registrable Securities registered pursuant to any such Registration
Statement; provided, however, that
the fees and disbursements to be paid with respect to counsel for the Holders
shall not exceed $50,000; and (vi) all fees and disbursements of independent
certified public accountants of the Company (including the expenses of any
special audit and comfort letters required by or incident to such performance).

 

(b)           Notwithstanding the foregoing, the
Company will not be responsible for (i) any underwriting discounts, commissions
or fees attributable to the sale of Registrable Securities, (ii) any legal fees
or disbursements (other than any such fees or disbursements relating to Blue
Sky compliance or otherwise as set forth under Section 2.8(a)) incurred by any
Holder, or incurred by any underwriter(s) in any underwritten offering if the
underwriter(s) participates in such underwritten offering at the request of the
Holders of Registrable Securities, or (iii) any transfer taxes that may be
imposed in connection with a sale or transfer of Registrable Securities.

 

(c)           The Company shall, in any event, bear
its internal expenses (including, without limitation, all salaries and expenses
of its officers and employees performing legal or accounting duties), the
expenses of any annual audit and the fees and expenses of any Person, including
special experts, retained by the Company.

 

15

 

Section 2.9. Indemnification;
Contribution.

 

(a)           The Company agrees, to the maximum
extent permitted by law, to indemnify and hold harmless (i) each Holder, (ii)
each other Person who participates as an underwriter in the offering or sale of
such securities, (iii) each person, if any, who controls (within the meaning of
Section 15 of the Securities Act or Section 20 of the Exchange Act) any such
Holder or underwriter (any of the persons referred to in this clause (iii)
being hereinafter referred to as a “controlling person”) and (iv) the
respective officers, directors, partners, employees, representatives and agents
of any such Holder or underwriter or any controlling person (any person
referred to in clause (i), (ii), (iii) or (iv) may hereinafter be referred to
as an “indemnified Person”), from and against any and all losses, claims,
damages, liabilities, judgments or expenses, joint or several (or actions or
proceedings, whether commenced or threatened, in respect thereof), including,
without limitation, interest, penalties, and attorneys’ fees and disbursements,
asserted against, resulting to, imposed upon or incurred by such indemnified
Person (collectively, “Claims”), to which such indemnified Person may become
subject, directly or indirectly, under either Section 15 of the Securities Act
or Section 20 of the Exchange Act or otherwise, insofar as such Claims arise
out of or are based upon, or are caused by any untrue statement or alleged
untrue statement of a material fact contained in any Registration Statement or
Prospectus (or any amendment or supplement thereto), or any omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, or a violation by the
Company of the Securities Act or any state securities law, or any rule or
regulation promulgated under the Securities Act or any state securities law, or
any other law applicable to the Company relating to any such registration or
qualification, except insofar as such losses, claims, damages, liabilities,
judgments or expenses of any such indemnified Person; (x) are caused by any
such untrue statement or omission or alleged untrue statement or omission that
is based upon information relating to such indemnified Person furnished in
writing to the Company by or on behalf of any of such indemnified Person
expressly for use therein; (y) with respect to the preliminary Prospectus in a
non-underwritten offering, resulting from the fact that such Holder sold
Securities to a person to whom there was not sent or given, at or prior to the
written confirmation of such sale, a copy of the Prospectus, as amended or
supplemented, if the Company shall have previously furnished copies thereof to
such Holder in accordance with this Agreement and said Prospectus, as amended
or supplemented, would have corrected such untrue statement or omission; or (z)
as a result of the use by an indemnified Person of any Prospectus when, upon
receipt of a notice from the Company of the existence of any fact of the kind
described in Section 2.5(d)(iv), the indemnified Person or the related Holder
was not permitted to do so. Such indemnity shall remain in full force and
effect regardless of any investigation made by or on behalf of any indemnified
Person and shall survive the transfer of such securities by such Holder.

 

In
case any action shall be brought or asserted against any of the indemnified
Persons with respect to which indemnity may be sought against the Company, such
indemnified Person shall promptly notify the Company and the Company shall
assume the defense thereof with counsel reasonably satisfactory to the
indemnified Persons, it being understood and agreed that the Company’s regular
outside counsel is acceptable for such purpose. Such indemnified Person shall
have the right to employ separate counsel in any such action and to participate
in the defense thereof, but the fees and expenses of such counsel shall be at
the expense of the indemnified Person unless (i) the employment of such counsel
shall have been specifically

 

16

 

authorized in writing by the Company, (ii) the Company shall
have failed to assume the defense and employ counsel or (iii) the named parties
to any such action (including any implied parties) include both the indemnified
Person and the Company and the indemnified Person shall have been advised in
writing by its counsel that there may be one or more legal defenses available
to it which are materially different from or additional to those available to
the Company, it being understood, however, that the Company shall not, in
connection with such action or similar or related actions or proceedings
arising out of the same general allegations or circumstances, be liable for the
reasonable fees and expenses of more than one separate firm of attorneys (in
addition to any local counsel) at any time for all the indemnified Persons,
which firm shall be (x) designated by such indemnified Persons who sold a
majority of the Registrable Securities which are subject to the Registration
Statement giving rise to the particular indemnity claim (provided that if
Advent, any Advent Stockholder or any person affiliated with Advent is an
indemnified Person, then Advent shall designate such counsel) and (y)
reasonably satisfactory to the Company. The Company shall not be liable for any
settlement of any such action or proceeding effected without the Company’s
prior written consent, which consent shall not be withheld unreasonably, and
the Company agrees to indemnify and hold harmless any indemnified Person from
and against any loss, claim, damage, liability, judgment or expense by reason
of any settlement of any action effected with the written consent of the
Company. The Company shall not, without the prior written consent of each
indemnified Person, which shall not be unreasonably withheld, settle or
compromise or consent to the entry of judgment on or otherwise seek to
terminate any pending or threatened action, claim, litigation or proceeding in
respect of which indemnification or contribution may be sought hereunder
(whether or not any indemnified Person is a party thereto), unless such
settlement, compromise, consent or termination includes an unconditional
release of each indemnified Person from all liability arising out of such
action, claim litigation or proceeding.

 

(b)           Each Holder of Registrable Securities
covered by any Registration Statement agrees, severally and not jointly, to
indemnify and hold harmless the Company and its directors, officers and any
person controlling (within the meaning of Section 15 of the Securities Act or
Section 20 of the Exchange Act) the Company, and the respective officers,
directors, partners, employees, representatives and agents of each person, to
the same extent as the foregoing indemnity from the Company to each of the
indemnified Persons, but only (i) losses, claims, damages, liabilities,
judgments or expenses (x) that are caused by any untrue statement or omission
or alleged untrue statement or omission that is based upon information relating
to such Holder furnished in writing by or on behalf of such Holder expressly for
use in any Registration Statement or Prospectus, (y) with respect to the
preliminary Prospectus in a non-underwritten offering, which result from the
fact that such Holder sold Securities to a person to  whom there was not sent or given, at or prior to the
written confirmation of such sale, a copy of the Prospectus, as amended or
supplemented, if the Company shall have previously furnished copies thereof to
such Holder in accordance with this Agreement and said Prospectus, as amended
or supplemented, would have corrected such untrue statement or omission; or (z)
which result from the use by an indemnified Person of any Prospectus when, upon
receipt of a notice from the Company of the existence of any fact of the kind
described in Section 2.5(b)(iv), the indemnified Person or the related Holder
was not permitted to do so, and (ii) to the extent of the net cash proceeds, if
any, received by such Holder from the sale or other disposition of his or its
Registrable Securities covered by such Registration Statement. In case any
action or proceeding shall be brought against the Company or its directors or
officers or any

 

17

 

such controlling person in respect of which indemnity may be
sought against a Holder of Registrable Securities covered by any Registration
Statement, such Holder shall have the rights and duties given the Company in
Section 2.8(a) (except that the Holder may but shall not be required to assume
the defense thereof), and the Company or its directors or officers or such
controlling person shall have the rights and duties given to each Holder by
Section 2.9(a). Such indemnity shall remain in full force and effect regardless
of any investigation made by or on behalf of any the Company or any other indemnified
Person and shall survive the transfer of securities by any applicable Holder.

 

(c)           If the indemnification provided for
in this Section 2.9 is unavailable to an indemnified party under Section 2.9(a)
or (b) (other than by reason of exceptions provided in those Sections) in
respect of any losses, claims, damages, liabilities, judgments or expenses
referred to therein, then each applicable indemnifying party (in the case of
the Holders severally and not jointly), 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, claims damages, liabilities, judgments or expenses
(i) in such proportion as is appropriate to reflect the relative fault of the
Company and such Holder in connection with the statements or omissions which
resulted in such losses, claims, damages, liabilities, judgments or expenses,
or (ii) if such allocation provided by clause (i) above is not permitted by
applicable law, in such proportion as is appropriate to reflect not only the
relative fault referred to in clause (i) above but also the relative benefits
received by the Company on the one hand and the Holder on the other hand from
sale of Registrable Securities as well as any other relevant equitable
considerations. The relative fault of the Company on the one hand and of such
Holder on the other shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information
supplied by the Company or by such Holder and the parties relative intent,
knowledge, access to information and opportunity to correct or prevent such
statement or omission. The amount paid to a party as a result of the losses,
claims, damages, liabilities judgments and expenses referred to above shall be
deemed to include, subject to the limitations set forth in the second paragraph
of Section 2.9(a) and Section 2.9(b), any legal or other fees or expenses
reasonably incurred by such party in connection with investigating or defending
any action or claim.

 

The
Company and each Holder of Registrable Securities covered by any Registration
Statement agree that it would not be just and equitable if contribution
pursuant to this Section 2.9(c) were determined by pro rata allocation (even if
the Holders were treated as one entity for such purpose) or by any other method
of allocation which does not take into account the equitable considerations
referred to in the immediately preceding paragraph. Notwithstanding the
provisions of this Section 2.9(c) no Holder (and none of its related
indemnified Persons) shall be required to contribute, in the aggregate, any
amount in excess of the amount by which the dollar amount of proceeds received
by such Holder upon the sale of the Registrable Securities exceeds the amount
of any damages which such Holder has otherwise been required to pay by reason
of such untrue statement or omission or alleged omission. No person guilty of
fraudulent misrepresentations (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.

 

18

 

The
indemnity, and contribution provisions contained in this Section 2.9 are in
addition to any liability which the indemnifying person may otherwise have to
the indemnified persons referred to above.

 

Section 2.10. Participation in
Underwritten Registrations. No Holder may participate in any underwritten
registration hereunder unless such Holder (a) agrees to sell such Holder’s
Registrable Securities on the basis provided in any underwriting arrangements
approved by the Persons entitled hereunder to approve such arrangements and (b)
completes and executes all reasonable questionnaires, powers of attorney,
indemnities, underwriting agreements, lock-up letters and other documents
required under the terms of such underwriting arrangements.

 

Section 2.11. Selection of Underwriters.
The Holders of Registrable Securities covered by any Registration Statement who
desire to do so may sell such Registrable Securities in an underwritten
offering. In any such underwritten offering, the investment banker or
investment bankers and manager or managers that will administer the offering
will be selected by the Holders of a majority of the Registrable Securities
included in such offering if such registration is pursuant to the Demand
Registration Statement, and by the Company if such registration is pursuant to
a Company Registration Statement or S-3 Registration Statement; provided,
however, that in the case of a registration pursuant to a Demand
Registration Statement, such investment bankers and managers must be reasonably
satisfactory to the Company. Such investment bankers and managers are referred
to herein as the “underwriters”.

 

Section 2.12. Market Stand-Off. In
consideration for the Company agreeing to its obligations under this Agreement,
each Holder agrees in connection with the registration of the Company’s
securities (whether or not such Holder is participating in such registration)
upon the request of the Company and the underwriters managing any underwritten
offering of the Company’s securities, not to sell, make any short sale of,
loan, grant any option for the purchase of, or otherwise dispose of, any
Registrable Securities in a market transaction (other than those included in
the registration) without prior written consent of the Company, or such
underwriters, as the case may be, for such period of time (not to exceed 180
days from the effective date of such registration) as the Company and the
underwriters may specify.

 

Section 2.13. Grant and Transfer of
Registration Rights. Except for registration rights which have been granted
by the Company as of the date hereof and registration rights granted by the
Company after the date hereof which are subordinate to the rights of the
Holders hereunder, the Company shall not grant any registration rights to any
other person or entity without the prior written consent of a majority in
interest of all Registrable Securities held by the Holders. The rights to cause
the Company to register Registrable Securities of a Holder and keep information
available granted to a Holder by the Company under Sections 2.2, 2.3 and 2.4,
may be assigned by a Holder to (a) to any limited partner or affiliate of a
Holder in connection with the transfer of at least 1,000,000 Registrable
Securities, or (b) to any third party transferee acquiring at least 3,000,000
Registrable Securities issued to the Holder or the shares of Common Stock
issued upon conversion of such Registrable Securities; provided: (i) the
transfer of the Registrable Securities is permitted under the terms and
conditions of the Stockholders’ Agreement; (ii) the Company is, within a
reasonable time after such transfer, furnished with written notice of the name
and address of such transferee or assignee and the securities with

 

19

 

respect
to which such registration rights are being assigned; (iii) such transferee or
assignee agrees in writing to be bound by and subject to the terms and
conditions of this Agreement; and (iv) such assignment shall be effective only
if immediately following such transfer the further disposition of such
securities by the transferee or assignee is restricted under the Securities
Act.

 

Section 2.14. Rule 144. Following the
Company’s initial public offering, the Company shall:

 

(a)           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;

 

(b)           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)           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 Registrable Securities 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,
deliver to such Holder a written certification of a duly authorized officer of
the Company as to whether the Company has complied with the foregoing
requirements.

 

Section 2.15. Sale of Preferred Stock to
Underwriter. Notwithstanding any provision of this Agreement to the contrary,
in lieu of converting any shares of Preferred Stock prior to the filing of any
registration statement filed pursuant to this Agreement, the holder of such
shares may sell such shares of Preferred Stock to the underwriters of the
offering being registered upon the undertaking of such underwriters to convert
the Preferred Stock to Common Stock, each such step to be effective at the
closing of the offering. The Company agrees to cause the Common Stock issuable
on the conversion of the Preferred Stock to be issued within such time period
as will permit the underwriters to make and complete the distribution
contemplated by the underwriting.

 

Section 2.16. Changes in Preferred Stock
or Common Stock. If, and as often as, there is any change in the Preferred
Stock or Common Stock by way of a stock split, stock dividend, combination or
reclassification, or through a merger, consolidation, reorganization or
recapitalization, or by any other means, appropriate adjustment shall be made
in the provisions hereof so that the rights and privileges granted hereby shall
continue with respect to the Preferred Stock or Common Stock as so changed.

 

ARTICLE III

 

MISCELLANEOUS

 

Section 3.1. Termination. This
agreement and the obligations of the Company hereunder shall terminate on the
earliest of (i) the first date on which no Registrable Securities

 

20

 

remain outstanding and (ii) the close of business on the
fifth anniversary of the Company’s Qualified IPO; provided, however, the obligations
in Section 2.8, 2.9, 2.12 and 2.14, and Article III shall survive any such
termination; and provided, further, if a written registration request pursuant
to Section 2.2 or 2.4, or a Registration Notice pursuant to Section
2.3, has been issued prior to the fifth (5th) anniversary of the
Company’s Qualified IPO, then this Agreement shall remain in full force and
effect as to any such registration until such time as the Company has complied
with its obligations with respect to such registration.

 

Section 3.2. Entire Agreement. This
Agreement, together with the Purchase Agreement, constitutes the entire
agreement between the parties with respect to the subject matter hereof and
supersedes all prior agreement and understandings, both oral and written,
between the parties with respect to the subject matter hereof.

 

Section 3.3. Successors and Assigns.
This Agreement shall inure to the benefit of (subject to Section 2.13) and be
binding upon the successors and assigns of each of the parties, including without
limitation and without the need for an express assignment, subsequent Holders
of Registrable Securities.

 

Section 3.4. Notices. All notices
and other communications given or made pursuant hereto or pursuant to any other
agreement among the parties, unless otherwise specified, shall be in writing
and shall be deemed to have been duly given or made if sent by facsimile (with
confirmation in writing), delivered personally or by overnight courier or sent
by registered or certified mail (postage prepaid, return receipt requested) to
the parties at the facsimile number, if any, or address set forth below or at
such other addresses as shall be furnished by the parties by like notice.
Notices sent by facsimile shall be effective when receipt is acknowledged, notices
delivered personally or by overnight courier shall be effective upon receipt
and notices sent by registered or certified mail shall be effective three days
after mailing:

 

	
  if to a Holder

  	
   

  	
  at the address set forth on the records of the Company.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  In addition, copies of all such notices or other
  communications shall be concurrently delivered by the Person giving the same
  to each person who has been identified to the Company by such Holder as a
  Person who is to receive copies of such notice and, if such Holder is an
  Advent Stockholder, with a copy to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Pepper Hamilton LLP

  
	
   

  	
   

  	
  3000 Two Logan Square

  
	
   

  	
   

  	
  18th and Arch Streets

  
	
   

  	
   

  	
  Philadelphia, PA 19103

  
	
   

  	
   

  	
  Attn: James D. Epstein, Esq.

  
	
   

  	
   

  	
  Telephone Number: (215) 981-4368

  
	
   

  	
   

  	
  Fax: (215) 981-4750

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  and if such Holder is Jersey Partners, Inc., with a copy
  to:

  

 

21

 

	
   

  	
   

  	
  Greenberg
  Traurig LLP

  
	
   

  	
   

  	
  200 Park
  Avenue

  
	
   

  	
   

  	
  New York, NY
  10166

  
	
   

  	
   

  	
  Attn: Alan
  Gaynor, Esq.

  
	
   

  	
   

  	
  Tel: (212)
  801-9368

  
	
   

  	
   

  	
  Fax: (212)
  801-6400

  
	
   

  	
   

  	
   

  
	
  if to the Company:

  	
   

  	
  GFI Group
  Inc.

  
	
   

  	
   

  	
  100 Wall
  Street

  
	
   

  	
   

  	
  New York, NY

  
	
   

  	
   

  	
  Attn: J.
  Christopher Giancarlo

  
	
   

  	
   

  	
  Tel: (212)
  968-2927

  
	
   

  	
   

  	
  Fax: (212)
  968-2386

  
	
   

  	
   

  	
   

  
	
  with copies to:

  	
   

  	
  Milbank,
  Tweed, Hadley & McCloy LLP

  
	
   

  	
   

  	
  1 Chase
  Manhattan Plaza

  
	
   

  	
   

  	
  New York, NY
  10005-1413

  
	
   

  	
   

  	
  Attn: John T.
  O’Connor, Esq.

  
	
   

  	
   

  	
  Telephone
  Number: (212) 530-5000

  
	
   

  	
   

  	
  Fax: (212)
  530-5219

  

 

Section 3.5. Headings. The headings
contained in this Agreement are for convenience only and shall not affect the
meaning or interpretation of this Agreement.

 

Section 3.6. Counterparts. This
Agreement may be executed by facsimile and in any number of counterparts, each
of which shall be deemed to be an original and all of which together shall be
deemed to be one and the same instrument.

 

Section 3.7. Choice of Law;
Jurisdiction; Venue. This Agreement has been negotiated and shall be
consummated in the State of New York and shall be governed by and construed in
accordance with the laws of the State of New York, without regard to its
principles of conflicts of law. The parties hereto irrevocably consent to the
jurisdiction of the courts of the State of New York located within the County
of New York and of any federal court located in the Southern District of the
State of New York in connection with any action or proceeding arising out of or
relating to this Agreement, any document or instrument delivered pursuant to,
in connection with or simultaneously with this Agreement, or a breach of this
Agreement or any such document or instrument; provided, however
if the federal courts have subject matter jurisdiction, any action shall be
commenced and maintained there. In any such action or proceeding, each party
hereto waives personal service of any summons, complaint or other process and
agrees that service thereof may be made in accordance with Section 3.4. Within
30 days after such service, or such other time as may be mutually agreed upon
in writing by the attorneys for the parties to such action or proceeding, the
party so served shall appear or answer such summons, complaint or other
process. Should the party so served fail to appear or answer within such 30-day
period or such extended period, as the case may be, such party shall be

 

22

 

deemed in default and judgment may be entered against such
party for the amount as  demanded
in any summons, complaint or other process so served.

 

Section 3.8. Specific Enforcement.
Each party hereto acknowledges that the remedies at law of the other parties
for a breach or threatened breach of this Agreement would be inadequate, and,
in recognition of this fact, any party to this Agreement, without posting any
bond, and in addition to all other remedies which may be available, shall be
entitled to obtain equitable relief in the form of specific performance, a
temporary restraining order, a temporary to permanent injunction or any other
equitable remedy which may then be available.

 

Section 3.9. Amendment and Waivers.
No delay or failure on the part of any party hereto in exercising any right,
power or privilege under this Agreement or under any other instruments given in
connection with or pursuant to this Agreement shall impair any such right,
power or privilege or be construed as a waiver of any default or any
acquiescence therein. No single or partial exercise of any such right, power or
privilege shall preclude the further exercise of such right, power or
privilege, or the exercise of any other right, power or privilege. No waiver
shall be valid against any party hereto unless made in writing and signed by
the party against whom enforcement of such waiver is sought and then only to
the extent expressly specified therein. The provisions of this Agreement may
not be amended, modified or supplemented unless the Company has obtained the written
consent of Holders of a majority of the then outstanding Registrable
Securities.

 

23

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed by their respective authorized officers as of the day and year first
above written.

 

	
   

  	
  THE COMPANY:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GFI GROUP
  INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ S. McMillan

  	
   

  
	
   

  	
   

  	
  Name: S.
  McMillan

  	
   

  
	
   

  	
   

  	
  Title: C.O.O.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE
  PURCHASERS:

  
	
   

  	
   

  
	
   

  	
  Global
  Private Equity IV Limited Partnership

  

 

	
   

  	
  By:

  	
  Advent International
  Limited Partnership,

  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Advent
  International Corporation,

  General Partner

  

 

	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Robert E. Taylor

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Robert
  E. Taylor, Jr.

  
	
   

  	
   

  	
   

  	
  Title: Vice
  President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Advent
  Partners (NA) GPE-IV Limited Partnership

  
	
   

  	
  Advent
  Partners GPE-IV Limited Partnership

  
	
   

  	
  Advent
  Partners Limited Partnership

  

 

	
   

  	
  By:

  	
  Advent
  International Corporation,

  General Partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Robert E.
  Taylor

  	
   

  
	
   

  	
   

  	
  Name: Robert E. Taylor, Jr.

  
	
   

  	
   

  	
  Title: Vice President

  

 

 

	
   

  	
  3i Group PLC

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Authorized
  Signature:

  	
  /s/ Dara F. Mitchell

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Printed Name:

  	
  Dara F. Mitchell

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Investment Director

  	
  , 3i plc

  
							

 

	
   

  	
  Venturion GFI
  LLC

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Authorized
  Signature:

  	
  /s/ Geoffrey Kalish

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Printed Name:

  	
  Geoffrey
  Kalish

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Managing Member

  	
   

  
							

 

	
   

  	
  CMS
  Co-Investment Subpartnership

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Authorized
  Signature:

  	
  /s/ Ingrid R. Welch

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Printed Name:

  	
  Ingrid R. Welch

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Authorized Signatory

  	
   

  
							

 

Execution Page to

Registration Rights Agreement

 

 

	
  Venturion GFI
  II LLC

  
	
   

  
	
   

  
	
  Authorized
  Signature:

  	
  /s/ Geoffrey Kalish

  	
   

  
	
   

  
	
  Printed Name:

  	
  Geoffrey
  Kalish

  	
   

  
	
   

  
	
  Title:

  	
  Managing Member

  	
   

  
							

 

 

SCHEDULE A

 

	
  Name and
  Address of Investor

  	
   

  	
  No. of
  Subject
Shares

  	
   

  	
  Purchase
  Price

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Global Private
  Equity IV Limited Partnership

  	
   

  	
  27,964,905

  	
   

  	
  $

  	
  26,878,915.92

  	
   

  
	
  c/o Advent
  International Corporation

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  75 State Street

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Boston, MA 02109

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attention:

  	
  Robert E. Taylor

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Facsimile:

  	
  617.946.2907

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Advent Partners
  (NA) GPE-IV Limited Partnership

  	
   

  	
  16,742

  	
   

  	
  $

  	
  16,091.84

  	
   

  
	
  c/o Advent
  International Corporation

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  75 State Street

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Boston, MA 02109

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attention:

  	
  Robert E. Taylor

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Facsimile: 

  	
  617.946.2907

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Advent Partners
  GPE-IV Limited Partnership

  	
   

  	
  338,133

  	
   

  	
  $

  	
  325,001.94

  	
   

  
	
  c/o Advent
  International Corporation

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  75 State Street

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Boston, MA 02109

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attention:

  	
  Robert E. Taylor

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Facsimile:

  	
  617.946.2907

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Advent Partners
  Limited Partnership

  	
   

  	
  332,929

  	
   

  	
  $

  	
  320,000

  	
   

  
	
  c/o Advent
  International Corporation

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  75 State Street

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Boston, MA 02109

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attention:

  	
  Robert E. Taylor

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Facsimile:

  	
  617.946.2907

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3i Group PLC

  	
   

  	
  703,137

  	
   

  	
  $

  	
  675,831.38

  	
   

  
	
  91 Waterloo Road

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  London SE1 8XP

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  United Kingdom

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attention:

  	
  Dara Mitchell

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Facsimile:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
									

 

 

	
  Venturion GFI
  LLC

  	
   

  	
  5,410,095

  	
   

  	
  $

  	
  5,199,999.37

  	
   

  
	
  Venturion GFI
  II, LLC

  	
   

  	
  520,202

  	
   

  	
  $

  	
  500,000.48

  	
   

  
	
  c/o Venturion
  GFI LLC

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  275 Madison
  Avenue, 38th Floor

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  New York, NY
  10016

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attention:

  	
  Geoff Kalish

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Facsimile:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CMS
  Co-Investment Subpartnership

  	
   

  	
  87,561

  	
   

  	
  $

  	
  84,160.66

  	
   

  
	
  1926 Arch Street

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Philadelphia, PA
  19103-1484

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attention:

  	
  Ingrid Welch

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
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Exhibit 4.7  

THIS
WARRANT AND ANY SHARES ACQUIRED UPON THE EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE
TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT WITH RESPECT TO SUCH SECURITIES, FILED AND MADE EFFECTIVE UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
AND SUCH APPLICABLE STATE SECURITIES LAWS, OR UNLESS THE COMPANY RECEIVES AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY TO THE EFFECT THAT REGISTRATION UNDER SUCH ACT AND SUCH APPLICABLE STATE
SECURITIES LAWS IS NOT REQUIRED. 

 
 

WARRANT TO PURCHASE SHARES OF
  COMMON STOCK, PAR VALUE $.01 PER SHARE,
  OF GFINET INC.    
    

        This Warrant certifies that NEWNETCO LLC, a Delaware limited liability company with principal executive offices at
36 Park Drive East, Branford CT 06405 (the "Holder"), for value received, is entitled to purchase from  GFINET INC., a Delaware Corporation (the
"Company"), at any time and from time to time during the
Exercise Period, up to 1,000,000 shares of Common Stock at an initial price per share of $1.00, as such price from time to time may be adjusted pursuant to Section 5 of this Warrant (as so
adjusted, the "Share Price"), upon the terms and subject to the conditions hereinafter set forth. 

        1.    DEFINITIONS.

        As
used in this Warrant the following terms have the respective meanings set forth below: 

        "Affiliate" means, with regard to any person, any person which, directly or indirectly controls, is controlled by, or is under common
control with, such person, including holders of membership interests of such person, and, with respect to any person who is an individual, the spouse, ancestors and descendants (lineal or by marriage)
thereof, or any trust(s) for the exclusive benefit of one or more of such individuals, except that no Person shall be deemed to be an Affiliate of the Holder solely by virtue of the Holder's or such
Person's ownership of or right to acquire (i) any capital stock of the Company, including, without limitation, Common Stock and Convertible Securities, or (ii) any options, calls, rights
or warrants to purchase capital stock of the Company, including, without limitation, any options, calls, rights or warrants to purchase Common Stock or Convertible Securities.
"Control" (including, with correlative meaning, the terms "controlled
by" and "under the common control with"), as used with respect to any person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies
of such person, whether through the ownership of voting securities, by contract or otherwise. 

        "Associate" has the meaning assigned to such term in Rule 12b-2 under the Exchange Act. 

        "Business Day" means any day that is not a Saturday or Sunday or a day on which banks are required or permitted to be closed in the State
of New York. 

        "Change of Control" will mean (i) a sale of all or substantially all of the assets of the Company, whether in a single transaction
or a series of transactions; (ii) the merger or consolidation of the Company with or into any corporation or the merger of another corporation into the Company if the effect is that fifty
percent (50%) or more of the total voting power entitled to vote in the election of the board of directors of the surviving or new corporation is held by a person or person other than the shareholders
of the Company immediately prior to such transaction or (iii) the occurrence of any other event which results in fifty percent (50%) or more of the total voting power entitled to vote in the
election of the board of directors of the Company being held by a person or persons other than the shareholders of the Company who, individually or in the aggregate, held 50% or more of such voting
power immediately prior to such event. 

        "Commission" means the U.S. Securities and Exchange Commission. 

        "Common Stock" means the common stock, par value $0.01 per share, of the Company as constituted on the date hereof, and any capital stock
into which the Common Stock thereafter may be changed. 

        "Convertible Securities" means evidences of indebtedness, shares of any class or series of capital stock or other securities which are
convertible into or exchangeable or exercisable (with or without the payment of additional consideration) for shares of Common Stock, either immediately or upon the occurrence of a specified date or
event. 

        "Engagement Agreement" means that certain agreement, dated May 17, 2000, by and between the Company and New Net
Companies, Inc., a Delaware corporation. 

 

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

        "Exercise Period" means the period during which this Warrant is exercisable, in whole or in part, pursuant to Section 2(a). 

        "Expiration Date" means June 15, 2005. 

        "Fair Market Value" means, when used with reference to shares of Common Stock or any other class or series of capital stock or other
securities of the Company or of any other property, the fair value thereof as determined in good faith by not less than a majority of the Board (upon consultation with its professional advisors) and,
if such determination cannot be made, by a nationally recognized independent investment banking or appraisal firm experienced in the valuation of such securities or property selected in good faith by
the Board of Directors of the Company. 

        "Holder" means the Person in whose name this Warrant is registered on the books of the Company maintained for such purpose. 

        "Other Property" has the meaning ascribed to such term in Section 5(c) hereof. 

        "Outstanding" means, on any date of determination and when used with reference to any class or series of capital stock of the Company, all
issued and outstanding shares of such class or series of capital stock, except shares then owned or held by or for the account of the Company or any subsidiary thereof. 

        "Person" means any individual, sole proprietorship, partnership, joint venture, trust, incorporated organization, association,
corporation, limited liability company, institution, public benefit corporation, entity or public or governmental authority (whether federal, state, county, city, municipal or otherwise, including
without limitation, any instrumentality, division, agency, body or department thereof). 

        "Qualified IPO" means a firm commitment underwritten initial public offering pursuant to an effective registration statement under the
Securities Act covering the offer and sale of Common Stock for the account of the Company in which (i) the per share price is at least $1.50 (as adjusted for stock splits, dividends,
recapitalizations and the like), and (ii) the gross cash proceeds to the Company (before underwriting discounts, commissions and fees) are at least $15.0 million. 

        "Securities Act" means the Securities Act of 1933, as amended, or any similar or successor federal statute, and the rules and regulations
promulgated by the Commission thereunder, as the same shall be in effect from time to time. 

        "Share Price" has the meaning ascribed to such term in the introductory paragraph hereof. 

        "Transfer Notice" has the meaning ascribed to such term in Section 8(b) hereof. 

        "Warrant Price" means an amount equal to the product of (i) the number of shares of Common Stock being purchased upon exercise of
this Warrant pursuant to Section 3(a) multiplied by (ii) the Share Price then in effect. 

        "Warrant Shares" has the meaning ascribed to such term in Section 2(a) hereof. 

        This
Warrant is subject to the following terms and conditions: 

        2.    EXERCISABILITY; TERMINATION.

        (a)    Exercisability.

        (i)    This Warrant is exercisable on any Business Day, for all or any part of the shares of Common Stock as shall have vested
pursuant to Section 2(a)(ii) below, at the option of the Holder at any time from and after the earlier of (i) the consummation of a
Qualified IPO and (ii) May 17, 2002, and prior to 5:00 P.M., Eastern Time, on the Expiration Date. 

        (ii)    The shares of Common Stock subject to this Warrant (the "Warrant
Shares") shall vest and become exercisable (A) as to the first 1/18th of the Warrant Shares purchasable hereunder, on July 15, 2000, provided and on
condition that the Engagement Agreement has not been terminated by either party and the Holder continues to provide services to the Company under the Engagement Agreement and is not in material breach
thereof from the date hereof through such vesting date, and (B) as to an additional 1/18th of the Warrant Shares purchasable hereunder, on the 15th day of each
calendar month thereafter for the next seventeen consecutive months, provided and on condition that the Engagement Agreement has not been terminated by either party and the Holder continues to provide
services to the Company under the Engagement Agreement and is not in material breach thereof from the date hereof through each such vesting date. Notwithstanding the above, all of the Warrant Shares
shall vest immediately upon a Change of Control. 

2

 

        (c)    Termination.    The unexercised portion of this Warrant shall terminate and cease to be exercisable at
5:00 P.M., Eastern Time, on the Expiration Date. 

        3.    EXERCISE OF WARRANT.

        (a)    Manner of Exercise; Payment.    This Warrant may be exercised during the Exercise Period, as to the whole or
any lesser number of the respective whole Warrant Shares as shall have vested pursuant to Section 2(a)(ii), by the surrender of this Warrant (with the notice of exercise at the end hereof duly
executed) to the Company at its office as set forth in the form of election attached hereto, or at such other place as is designated in writing by the Company, together with a certified or bank
cashier's check payable to the order of the Company in an amount equal to the Share Price multiplied by the number of respective Warrant Shares for which this Warrant is being exercised. 

        (b)    Delivery of Warrant Shares.    Upon any exercise of this Warrant in the manner set forth in Section 3(a)
above, the Company shall, as promptly as practicable, and in any event within five Business Days thereafter, (subject, however, to the expiration or early termination, as applicable, of any relevant
waiting period under the Hart- Scott-Rodino Antitrust Improvements Act of 1976, as amended), execute or cause to be executed and deliver or cause to be delivered to the Holder
certificate(s) representing the aggregate number of whole shares of Common Stock issuable upon such exercise, together with cash in lieu of any fraction of a share, as hereinafter provided. The
certificate(s) so delivered shall be, to the extent possible, issued in such denomination(s) as the Holder shall request in the notice of exercise and shall be registered in the name of Holder or,
subject to the restrictions set forth in Section 8, in the name of such other Person as shall be designated in the notice of exercise. This Warrant shall be deemed to have been exercised and
such certificates shall be deemed to have been issued (and, therefore, the Holder or any other Person designated to be named therein shall be deemed to have become a holder of record of shares of
Common Stock for all purposes), as of the date the notice of exercise, together with payment to the Company of the Warrant Price and any tax or other governmental charge required to be paid by the
Holder pursuant to Section 4(a) hereof. If this Warrant shall have been exercised in part, the Company shall, at the time of delivery of the certificates representing the Common Stock issuable
upon the exercise of this Warrant, deliver to the Holder a new Warrant evidencing the rights of the Holder to purchase the unpurchased shares of Common Stock covered by this Warrant, which new Warrant
shall in all other respects be identical with this Warrant, or, at the request of Holder, appropriate notation may be made on this Warrant and the same returned to the Holder. 

        4.    STOCK FULLY PAID; RESERVATION AND AUTHORIZATION OF COMMON STOCK, NO IMPAIRMENT.

        (a)    Stock Fully Paid and Nonassessable.    All Warrant Shares shall, upon issuance, be fully paid and
nonassessable, and free from all taxes, liens, and charges with respect to the issue thereof. The Company shall pay all expenses in connection with, and all taxes and other governmental charges that
may be imposed with respect to, the issue or delivery thereof, unless such tax or charge is imposed by law upon the Holder, in which case such taxes or charges shall be paid by the Holder. 

        (b)    Reservation and Authorization.    From and after the date of this Warrant, the Company shall at all times
reserve and keep available for issue upon the exercise of this Warrant such number of its authorized but unissued shares of Common Stock as shall be sufficient to permit the exercise in full of this
Warrant. If at any time the number of authorized but unissued shares of Common Stock shall not be sufficient to effect the exercise in full of this Warrant, the Company shall take all such corporate
action as, upon the advice of counsel to the Company, may be necessary to increase its authorized but unissued shares of Common Stock to such number of shares as shall be sufficient for such purpose.
Before taking any action which would result in an adjustment pursuant to Section 5 in the number of shares of Common Stock for which this Warrant is exercisable or in the Warrant Price, the
Company shall obtain all such authorizations or exemptions thereof or consents thereto, as may be necessary from any public or governmental authorities having jurisdiction thereof. If any shares of
Common Stock required to be reserved for issuance upon exercise of this Warrant require registration or qualification with any public or governmental authority or other governmental approval or filing
under any federal or state law before such shares may be so issued, the Company shall in good faith and as expeditiously as possible and at its expense endeavor to cause such shares to be fully
registered, qualified and approved. 

        (c)    No Impairment.    The Company shall not by any action, including, without limitation, amending its certificate
of incorporation or its by-laws, or through any reorganization, recapitalization, reincorporation, transfer of assets, consolidation, merger, business combination, dissolution,
liquidation, winding-up, issue or sale of securities or any other voluntary action or omission, avoid or seek to avoid the observance or performance of any of the terms of this Warrant,
but shall at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate to protect fully the rights and remedies of
the Holder against any such impairment. Without limiting the generality of the foregoing, the Company, by way of example and without limitation, shall (a) not increase the par value of any
shares of Common Stock receivable upon the exercise of this Warrant above the Share Price in effect 

3

 

immediately
prior to such increase in par value, (b) take all such action as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable
shares of Common Stock upon the exercise of this Warrant, and (c) use its best efforts to obtain all such authorizations, exemptions or consents from all public and governmental authorities
having jurisdiction thereof as may be necessary to enable the Company to perform its obligations under this Warrant. 

        5.    ADJUSTMENT OF SHARE PRICE AND NUMBER OF SHARES.    The Share Price shall be adjusted from time to time as set
forth in this Section 5. The Company shall give the Holder notice of any event described in this Section 5 which requires an adjustment pursuant to this Section 5 at the time of
such event. 

        (a)    Stock Dividends, Subdivisions and Combinations.    In the event the Company shall, at any time or from time to
time prior to 5:00 P.M., Eastern Time, on the Expiration Date, (i) pay a dividend or make a distribution in respect of the Common Stock in shares of Common Stock, (ii) subdivide
the outstanding shares of Common Stock, or (iii) combine the outstanding shares of Common Stock into a smaller number of shares, in each case whether by reclassification of shares,
recapitalization of the Company (including a recapitalization effected by a merger, consolidation or business combination to which Section 4(c) hereof does not apply) or otherwise, the Share
Price in effect immediately prior to such action shall be adjusted by multiplying such Share Price by a fraction, the numerator of which is the number of shares of Common Stock outstanding immediately
preceding such event and the denominator of which is the number of shares of Common Stock outstanding immediately after consummation of such event. An adjustment made pursuant to this
Section 5(a) shall be given effect upon payment of said dividend or distribution, as of the record date for the determination of stockholders entitled to receive such dividend or distribution
(on a retroactive basis) and in the case of a subdivision or combination shall become effective immediately as of the effective date thereof. 

        (b)    Issuance of Additional Shares of Common Stock.    In the event the Company shall, at any time or from time to
time issue sell or exchange shares of Common Stock (other than pursuant to any right, option or warrant to purchase or acquire shares of Common Stock or in connection with an acquisition, merger,
business combination or other similar transaction) for a consideration having a Fair Market Value on the date of such issuance, sale or exchange less than the Fair Market Value of such shares on the
date of such issuance, sale or exchange, then the Share Price shall be decreased by multiplying such Share Price by a fraction, the numerator of which shall be the sum of (i) the Fair Market
Value of all the shares of Common Stock outstanding on the day immediately preceding the first public announcement of such issuance, sale or exchange plus (ii) the Fair Market Value of the
consideration received by the Company in respect of such issuance, sale or exchange of shares of Common Stock, and the denominator of which shall be the product of (x) the Fair Market Value of
a share of Common Stock on the day immediately preceding the first public announcement of such issuance, sale or exchange multiplied by (y) the sum of the number of shares of Common Stock
outstanding on such day plus the number of shares of Common Stock so issued, sold or exchanged by the Company. 

        (c)    Reorganization, Reclassification, Consolidation, Merger, or Disposition of Assets.    In the event the Company
shall reorganize its capital, reclassify its capital stock, consolidate or merge with or into another corporation (where the Company is not the surviving corporation or where there is a change in or
distribution with respect to the Common Stock), or sell, transfer or otherwise dispose of all or substantially all its property, assets or business to another corporation and, pursuant to the terms of
such reorganization, reclassification, merger, consolidation or disposition of assets, shares of common stock of the successor or acquiring corporation, or any cash, shares of stock or other
securities or property of any nature whatsoever (including warrants or other subscription or purchase rights) in addition to or in lieu of common stock of the successor or acquiring corporation
("Other Property"), are to be received by or distributed to the holders of Common Stock, then each Holder shall have the right thereafter to receive,
upon exercise of this Warrant, the number of shares of common stock of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and Other Property receivable upon
or as a result of such reorganization, reclassification, merger, consolidation or disposition of assets by a holder of the number of shares of Common Stock into which this Warrant is exercisable
immediately prior to such event. In case of any such reorganization, reclassification, merger, consolidation or disposition of assets, the successor or acquiring corporation (if other than the
Company) shall expressly assume the due and punctual observance and performance of each and every covenant and condition of this Warrant to be performed and observed by the Company and all the
obligations and liabilities hereunder, subject to such modifications as may be deemed appropriate (as determined by resolution of the Board of Directors of the Company) in order to provide for
adjustments of shares of Common Stock for which this Warrant is exercisable which shall be as nearly equivalent as practicable to the adjustments provided for in this Section 5. For purposes of
this Section 5(c), "common stock of the successor or acquiring corporation" shall include stock of such corporation of any class which is not
preferred as to dividends or assets over any other class of stock of such corporation and which is not subject to redemption and shall also include any evidences of indebtedness, shares of stock or
other securities which are convertible into or exchangeable for any such stock, either immediately or upon the arrival of a specified date or the happening of a specified event and any 

4

 

warrants
or other rights to subscribe for or purchase any such stock. The foregoing provisions of this Section 5(c) shall similarly apply to successive reorganizations, reclassifications,
mergers, consolidations or dispositions of assets. 

        6.    NOTICES TO HOLDER.    Whenever the number of shares of Common Stock for which this Warrant is exercisable, or
whenever the Share Price shall be adjusted pursuant to Section 5, the Company shall forthwith prepare a certificate to be executed by the chief financial officer of the Company setting forth,
in reasonable detail, the event requiring such adjustment and the method by which such adjustment was calculated describing the number and kind of any other shares of stock or Other Property for which
this Warrant is exercisable, and any change in the share price or prices thereof, after giving effect to such adjustment or change. The Company shall use its best efforts to cause a signed copy of
such certificate to be delivered to the Holder in accordance with Section 12(g) at least 5 business days prior to the occurence of the event requiring such adjustment or change. The Company
shall keep copies of all such certificates and cause the same to be available for inspection at said office during normal business hours. 

        7.    FRACTIONAL SHARES.    No fractional share of Common Stock will be issued in connection with any exercise
hereunder, but in lieu of such fractional share the Company shall pay cash in lieu of such fractional share in the amount equal to the same fraction of the Share Price in effect on the date of
exercise. 

        8.    COMPLIANCE WITH SECURITIES ACT; TRANSFERABILITY OF WARRANT; DISPOSITION OF SHARES OF COMMON STOCK.

        (a)   Compliance with Securities Act.    The Holder, by acceptance hereof, agrees that (i) this Warrant and
the Warrant Shares are being acquired for investment and that the Holder will not offer, sell, or otherwise dispose of this Warrant or any Warrant Shares except under circumstances which will not
result in a violation of the Securities Act and (ii) prior to issuance of any Warrant Shares upon exercise of this Warrant, the Company may require, as a condition precedent to such issuance,
that the holder(s) of such Warrant Shares enter into a stockholders' agreement among the Company, such holder(s) and one or more other stockholders of the Company with respect to, among other things,
such Warrant Shares, which stockholders' agreement will include, without limitation, certain restrictions on the transferability of such Warrant Shares and tag-a-long rights,
in each case substantially similar to those restrictions and rights provided to other GFInet stockholders. Such stockholders' agreement will terminate upon the consummation of a Qualified IPO. This
Warrant and all Warrant Shares may bear the following or a similar legend: 

        "These
securities have not been registered under the Securities Act of 1933, as amended, or any state securities laws. They may not be sold, offered for sale, pledged, or hypothecated in
the absence of an effective registration statement as to the securities under said Act or an opinion of counsel satisfactory to the Company that such registration is not required." 

        (b)    Transferability of Warrant.    This Warrant may not be transferred to any Person other than an Affiliate or
Associate of the Holder without the prior written consent of the Company and, if so transferred, only in accordance with the following provisions of this Section 8(b). Prior to any transfer or
attempted transfer of this Warrant pursuant to the first sentence of this Section 8(b), the Holder shall give five (5) Business Days' prior written notice (a
"Transfer Notice") to the Company of the Holder's intention to effect such transfer, describing the manner and circumstance of the proposed transfer.
Subject to compliance with federal and state securities laws, after the fifth Business Day next following delivery of the Transfer Notice and such opinion, if applicable, the Holder shall be entitled
to transfer this Warrant in accordance with the terms of the Transfer Notice. Each Warrant issued upon such transfer shall bear a restrictive legend substantially to the effect of the provisions of
Section 8(a), unless in the opinion of such counsel such legend is not required in order to ensure compliance with the Securities Act. 

        (c)    Market Standoff.    The Holder agrees that, if so requested by the Company or any representative of the
underwriters (the "Managing Underwriter") in connection with any registration of the offering of any securities of the Company under the Securities Act, the Holder will not sell or otherwise transfer
any Warrant Shares or other securities of the Company during the 6 month period (the "Market Standoff Period") following the effective date of a registration statement of the Company filed
under the Securities Act. Such restriction shall apply only to the first registration statement of the Company to become effective under the Securities Act that includes securities to be sold on
behalf of the Company to the public in an underwritten public offering under the Securities Act. The Company may impose stop-transfer instructions with respect to securities subject to the
foregoing restrictions until the end of such Market Standoff Period. 

5

  

        9.    RIGHTS AND LIABILITIES AS STOCKHOLDERS.

            (a)   No Rights as Stockholder. No Holder of this Warrant shall be entitled to vote or receive dividends or be
deemed the holder of Common Stock or any other securities of the Company which may at any time be issuable on the exercise hereof for any purpose, nor shall anything contained herein be construed to
confer upon the Holder of this Warrant, as such, any of the rights of a stockholder of the Company or any right to vote for the election of directors or upon any matter submitted to stockholders at
any meeting thereof, or to give or withhold consent to any corporate action (whether upon any recapitalization, issuance of stock, reclassification of stock, change of par change of stock to no par
value, consolidation, merger, conveyance, or otherwise) or to notice of meetings, or to receive dividends or subscription rights or otherwise until the Warrant shall have been exercised and the
Warrant Shares issuable upon the exercise hereof shall have become deliverable, as provided herein. 

            (b)   Limitation on Liability. No provision of this Warrant, in the absence of affirmative action by the Holder
to purchase shares of Common Stock, and no enumeration herein of the rights or privileges of the Holder hereof, shall give rise to any liability of the Holder for the purchase of any Common Stock or
as a stockholder of the Company, whether such liability is asserted by the Company or by creditors of the Company. 

        10.    LOSS OR MUTILATION.    Upon receipt by the Company from the Holder of evidence reasonably satisfactory to the
Company of the ownership of and the loss, theft, destruction or mutilation of this Warrant and indemnity reasonably satisfactory to it, and in the case of mutilation upon surrender and cancellation
thereof, the Company will execute and deliver in lieu hereof a new Warrant of like tenor provided that in the case of mutilation, no indemnity shall be required if this Warrant in identifiable form is
surrendered to the Company for cancellation. 

        11.    REGISTRATION.

        (a)   If, at any time prior to the expiration of the Exercise Period, the Company proposes to file with the Commission a
registration statement under the Securities Act on any form (other than a registration statement on Form S-4, Form S-8, or any successor form) covering the
disposition of Common Stock having an aggregate disposition price of at least $1.0 million, either for its own account or for the account of any stockholder of the Company (a
"Registration Statement"), excluding any Registration Statement filed with the Commission in connection
with a firm commitment underwritten initial public offering of Common Stock for the account of the Company, and at such time the Holder has exercised this Warrant in whole or in part, the Company will
give written notice (a "Piggyback Notice") to the Holder at least 20 days before the initial filing of such Registration Statement, which
Piggyback Notice shall set forth the intended method of disposition of the securities proposed to be registered. The Piggyback Notice shall offer to include in such filing such aggregate number of
Warrant Shares then owned by the Holder as the Holder may request. The Holder shall advise the Company in writing within 10 days after the date of receipt of the Piggyback Notice from the
Company whether the Holder intends to have any Warrant Shares registered under the Registration Statement, setting forth the number of such Warrant Shares for which registration is requested. The
Company shall thereupon include in such Registration Statement the aggregate number of Warrant Shares held by the Holder for which registration is so requested, subject to the provisions of the next
sentence. If a Registration Statement involves an underwritten offering and the managing underwriter advises the Company in writing that, in its opinion, the number of securities requested to be
included in such Registration Statement exceeds the number which can be sold in such offering without adversely affecting the offering, the Company will include in such Registration Statement the
number of such securities which the Company is so advised can be sold in such offering without adversely affecting the offering, determined as follows: (i) first, the securities proposed by the
Company to be sold for it own account; (ii) second, any securities of the Company held by holders of the Series A Preferred Stock of the Company and Series B Preferred Stock of
the Company with contractual rights to be included therein and (iii) third, any Registrable Securities requested to be included in such registration by the Holder. 

6

 

As
used herein, "Registrable Securities" shall mean the Warrant Shares that have not been previously sold pursuant to a Registration Statement or Rule 144 promulgated under the Securities Act. 

        (b)   In the event of a registration pursuant to the provisions of this Section 11, the Company shall use its best
efforts to cause the Registrable Securities so registered to be registered or qualified for sale under the securities or blue sky laws of such jurisdictions as the Holder may reasonably request;  provided, however, that the Company shall not be required to qualify to do business in any state by
reason of this Section 11(b) in which it is not otherwise required to qualify to do business. 

        (c)   The Company shall keep effective any registration or qualification contemplated by this Section 11 and shall from
time to time amend or supplement each applicable Registration Statement, preliminary prospectus, final prospectus, application, document, and communication for such period of time as shall be required
to permit the Holder to complete the offer and sale of the Registrable Securities covered thereby. The Company shall in no event be required to keep any such registration or qualification in effect
for a period in excess of three months from the date on which the Holder is first free to sell such Registrable Securities; provided,  however, that, if the
Company is required to keep any such registration or qualification in effect with respect to securities other than the Registrable
Securities beyond such period, the Company shall keep such registration or qualification in effect as it relates to the Registrable Securities for so long as such registration or qualification remains
or is required to remain in effect in respect of such other securities. 

        (d)   In the event of a registration pursuant to the provisions of this Section 11, the Company shall furnish to the
Holder such number of copies of the Registration Statement and of each amendment and supplement thereto (in each case, including all exhibits), such reasonable number of copies of each prospectus
contained in such registration statement and each supplement or amendment thereto (including each preliminary prospectus), all of which shall conform to the requirements of the Securities Act and the
rules and regulations thereunder, and such other documents, as the Holder may reasonably request to facilitate the disposition of the Registrable Securities included in such registration. 

        (e)   In the event of a registration pursuant to the provisions of this Section 11, the Company shall furnish the Holder
of any Registrable Securities so registered with an opinion of its counsel (reasonably acceptable to the Holder) to the effect that (i) the Registration Statement has become effective under the
Securities Act and no order suspending the effectiveness of the Registration Statement, preventing or suspending the use of the Registration Statement, any preliminary prospectus, any final
prospectus, or any amendment or supplement thereto has been issued, nor has the Commission or any securities or blue sky authority of any jurisdiction instituted or threatened to institute any
proceedings with respect to such an order, (ii) the Registration Statement and each prospectus forming a part thereof (including each preliminary prospectus), and any amendment or supplement
thereto, complies as to form with the Securities Act and the rules and regulations thereunder, and (iii) such counsel has no knowledge of any material misstatement or omission in such
Registration Statement or any prospectus, as amended or supplemented. Such opinion shall also state the jurisdictions in which the Registrable Securities have been registered or qualified for sale
pursuant to the provisions of Section 11(b). 

        (f)    In the event of a registration pursuant to the provision of this Section 11, the Company shall enter into a
cross-indemnity agreement and a contribution agreement, each in customary form, with each underwriter, if any, and, if requested, enter into an underwriting agreement containing conventional
representations, warranties, allocation of expenses, and customary closing conditions, including, but not limited to, opinions of counsel and accountants' cold comfort letters, with any underwriter
who acquires any Registrable Securities. 

7

 

        (g)   In the event of a registration pursuant to the provisions of this Section 11: 

          (i)  The Holder shall furnish to the Company in writing such appropriate information (relating to the Holder and the
intention of such Holder as to proposed methods of sale or other disposition of its shares of Common Stock) and the identity of and compensation to be paid to any proposed underwriters to be employed
in connection therewith as the Company, any underwriter, or the Commission or any other regulatory authority may request; 

         (ii)  The Holder shall enter into the usual and customary form of underwriting agreement agreed to by the Company and any
underwriter with respect to any such offering, if required, and such underwriting agreement shall contain the customary rights of indemnity between the Company, the underwriters, and the Holder; 

       (iii)  The Holder shall agree that he shall execute, deliver and/or file with or supply the Company, any underwriters, the
Commission and/or any state or other regulatory authority such information, documents, representations, undertakings and/or agreements necessary to carry out the provisions of the registration
covenants contained in this Section 11 and/or to effect the registration or qualification of his or its Registrable Securities under the Securities Act and/or any of the laws and regulations of
any state of governmental instrumentality; 

        (iv)  the Company's obligation to include any Registrable Securities in a Registration Statement shall be subject to the
written agreement of the Holder thereof to offer such securities in the same manner and on the same terms and conditions as the other securities of the same class are being offered pursuant to the
registration statement, if such shares are being underwritten; 

         (v)  In the event that all the Registrable Securities have not been sold on or prior to the expiration of the period specified
in Section 11(c) above, the Company may de-register by post-effective amendment any Registrable Securities covered by the Registration Statement, but not sold on or
prior to such date. The Company agrees that it will notify the Holder of Registrable Securities of the filing and effective date of such post-effective amendment; and 

        (vi)  The Holder agrees that upon notification by the Company that the prospectus in respect to any public offering covered by
the provisions hereof is in need of revision, such Holder shall immediately upon receipt of such notification (x) cease to offer or sell any securities of the Company which must be accompanied
by such prospectus, (y) return all such prospectuses in such Holder's hands to the Company, and (z) not offer or sell any securities of the Company until such Holder has been provided
with a current prospectus and the Company has given such Holder notification permitting such Holder to resume offers and sales. 

         (h)  Subject to the conditions set forth below, the Company agrees to indemnify and hold harmless the Holder, its officers,
directors, partners, employees, agents and counsel, and each person, if any, who controls any such person within the meaning of Section 15 of the Securities Act or Section 20(a) of the
Exchange Act, from and against any and all loss, liability, charge, claim, damage, and expense whatsoever (which shall include, for all purposes of this Section 11, but not be limited to,
attorneys' fees and any and all reasonable expense whatsoever incurred in investigating, preparing, or defending against any litigation, commenced or threatened, or any claim whatsoever, and any and
all amounts paid in settlement of any claim or litigation), as and when incurred, arising out of, based upon, or in connection with: (i) any untrue statement or alleged untrue statement of a
material fact contained (A) in any Registration Statement, preliminary prospectus, or final prospectus (as from time to time amended and supplemented), or any amendment or supplement thereto,
relating to the sale of any of the Registrable Securities, or (B) in any application or other document or communication (in this Section 11 collectively called an
"application") executed by or on behalf of the Company or based upon written information furnished by or on behalf of the Company filed in any
jurisdiction in order to register or qualify any of the Registrable Securities under the securities or blue sky laws thereof or filed 

8

 

with
the Commission or any securities exchange; or (ii) any omission or alleged omission to state a material fact required to be stated in any document referenced in clause (A) or
(B) above or necessary to make the statements therein not misleading, unless such statement or omission was made in reliance upon and in conformity with written information furnished to the
Company with respect to such Holder by or on behalf of such person expressly for inclusion in any Registration Statement, preliminary prospectus, or final prospectus, or any amendment or supplement
thereto, or in any application, as the case may be; or (iii) any breach of any representation, warranty, covenant, or agreement of the Company contained in this Warrant. The foregoing agreement
to indemnify shall be in addition to any liability the Company may otherwise have, including liabilities arising under this Warrant. 

        If
any action is brought against the Holder or any of its officers, directors, partners, employees, agents, or counsel, or any controlling persons of such person (an
"indemnified party") in respect of which indemnity may be sought against the Company pursuant to the foregoing paragraph, such indemnified party or
parties shall promptly notify the Company in writing of the institution of such action (but the failure so to notify shall not relieve the Company from any liability other than pursuant to this
Section 11(h), except to the extent it may have been prejudiced in any material respect by such failure) and the Company shall promptly assume the defense of such action, including the
employment of counsel (reasonably satisfactory to such indemnified party or parties) and payment of expenses. Such indemnified party or parties shall have the right to employ its or their own counsel
in any such case, but the fees and expenses of such counsel shall be at the expense of such indemnified party or parties unless the employment of such counsel shall have been authorized in writing by
the Company in connection with the defense of such action or the Company shall not have promptly employed counsel reasonably satisfactory to such indemnified party or parties to have charge of the
defense of such action or such indemnified party or parties shall have reasonably concluded that there may be one or more legal defenses available to it or them or to other indemnified parties which
are different from or additional to those available to the Company, in any of which events such fees and expenses shall be borne by the Company and the Company shall not have the right to direct the
defense of such action on behalf of the indemnified party or parties. Anything in this Section 11(h) to the contrary notwithstanding, the Company shall not be liable for any settlement of any
such claim or action effected without its written consent, which shall not be unreasonably withheld. The Company shall not, without the prior written consent of each indemnified party that is not
released as described in this
sentence, settle or compromise any action, or permit a default or consent to the entry of judgment in or otherwise seek to terminate any pending or threatened action, in respect of which indemnity may
be sought hereunder (whether or not any indemnified party is a party thereto), unless such settlement, compromise, consent, or termination includes an unconditional release of each indemnified party
from all liability in respect of such action. The Company agrees promptly to notify the Holder of the commencement of any litigation or proceedings against the Company or any of its officers or
directors in connection with the sale of any Registrable Securities or any preliminary prospectus, prospectus, Registration Statement, or amendment or supplement thereto, or any application relating
to any sale of any Registrable Securities. 

        (i)    The Holder agrees to indemnify and hold harmless the Company, each director of the Company, each officer of the Company
who shall have signed any registration statement covering Registrable Securities held by the Holder, each other person, if any, who controls the Company within the meaning of Section 15 of the
Securities Act or Section 20(a) of the Exchange Act, and its or their respective counsel, to the same extent as the foregoing indemnity from the Company to the Holder in Section 11(h),
but only with respect to statements or omissions, if any, made in any Registration Statement, preliminary prospectus, or final prospectus (as from time to time amended and supplemented), or any
amendment or supplement thereto, or in any application, in reliance upon and in conformity with written information furnished to the Company with respect to the Holder by or on behalf of the Holder
expressly for inclusion in any such Registration Statement, preliminary prospectus, or final prospectus, or any amendment or supplement thereto, or in any application, as the case may 

9

 

be.
If any action shall be brought against the Company or any other person so indemnified based on any such Registration Statement, preliminary prospectus, or final prospectus, or any amendment or
supplement thereto, or in any application, and in respect of which indemnity may be sought against the Holder pursuant to this Section 11(i), the Holder shall have the rights and duties given
to the Company, and the Company and each other person so indemnified shall have the rights and duties given to the indemnified parties, by the provisions of Section 11(h). 

        (j)    To provide for just and equitable contribution, if (i) an indemnified party makes a claim for indemnification
pursuant to Section 11(h) or 11(i) (subject to the limitations thereof) but it is found in a final judicial determination, not subject to further appeal, that such indemnification may
not be enforced in such case, even though this Agreement expressly provides for indemnification in such case, or (ii) any indemnified or indemnifying party seeks contribution under the
Securities Act, the Exchange Act or otherwise, then the Company (including for this purpose any contribution made by or on behalf of any director of the Company, any officer of the Company who signed
any such Registration Statement, any controlling person of the Company, and its or their respective counsel), as one entity, and the Holder of the Registrable Securities included in such registration
in the aggregate (including for this purpose any contribution by or on behalf of an indemnified party), as a second entity, shall contribute to the losses, liabilities, claims, damages, and expenses
whatsoever to which any of them may be subject, on the basis of relevant equitable considerations such as the relative fault of the Company and such Holder in connection with the facts which resulted
in such losses, liabilities, claims, damages, and expenses. The relative fault, in the case of an untrue statement, alleged untrue statement, omission, or alleged omission, shall be determined by,
among other things, whether such statement, alleged statement, omission, or alleged omission relates to information supplied by the Company or by such Holder, and the parties' relative intent,
knowledge, access to information, and opportunity to correct or prevent such statement, alleged statement, omission, or alleged omission. The Company and the Holder agree that it would be unjust and
inequitable if the respective obligations of the Company and the Holder for contribution were determined by pro rata or per capita allocation of the aggregate losses, liabilities, claims, damages, and
expenses (even if the Holder and the other indemnified parties were treated as one entity for such purpose) or by any other method of allocation that does not reflect the equitable considerations
referred to in this Section 11(j). No person guilty of a fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from
any person who is not guilty of such fraudulent misrepresentation. Anything in this Section 11(j) to the contrary notwithstanding, no party shall be liable for contribution with respect to the
settlement of any claim or action effected without its written consent. This Section 11(j) is intended to supersede any right to contribution under the Securities Act, the Exchange Act or
otherwise. 

        12.    MISCELLANEOUS.

        (a)   Non-Waiver. No course of dealing or any delay or failure to exercise any right hereunder on the part of the
Holder shall operate as a waiver of such right or otherwise prejudice the Holder's rights, powers or remedies. 

        (b)   Successor and Assigns. Subject to the provisions of Section 8, this Warrant and the rights evidenced hereby shall
inure to the benefit of and be binding upon the successors of the Company and the successors and assigns of the Holder. The provision of this Warrant are intended to be for the benefit of all Holders
from time to time of this Warrant and shall be enforceable by any such Holder. 

        (c)   Amendment. This Warrant may be modified or amended or the provisions hereof waived with the written consent of the
Company and the Holder. 

        (d)   Severability. Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective
and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such 

10

 

prohibition
or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Warrant. 

        (e)   Headings. The headings used in this Warrant are for the convenience of reference only and shall not, for any purposes, be
deemed a part of this Warrant. 

        (f)    Governing Law. This Warrant shall be governed by the laws of the State of New York, without regard to the provisions
thereof relating to conflict of laws. 

        (g)   Notices. All notices required or permitted hereunder shall be in writing and shall be deemed effectively given:
(i) upon personal delivery to the party to be notified, (ii) when sent by confirmed telex or facsimile if sent during normal business hours of the recipient; (iii) five
(5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (iv) one (1) day after deposit with a nationally recognized,
overnight courier, specifying next day delivery, with written verification of receipt. All communications shall be sent to the parties hereto at the respective address of each party as set forth below
or at such other address as such party may designate by ten days advance written notice to the other parties hereto: 

	(i)
	If
to Company:

 GFInet inc.

100 Wall Street

New York, NY 10005

Attention:  Chaim A. Levin, Esq.

                  Scott E. Pintoff, Esq.

Telephone: (212) 968-4100

Telecopy: (212) 968-4150 

	(ii)
	with
a copy to:

 Greenberg
Traurig, LLP

200 Park Avenue

New York, NY 10166

Attention: Clifford E. Neimeth, Esq.

Telephone: (212) 801-9200

Telecopy: (212) 801-6400 

	(iii)
	If
to Holder:

 Newnetco
LLC

36 Park Drive East

Branford, CT 06405

Attention:    Larry Schwartz

                    Ross Kudwitt

Telephone: (203) 453-0189

Telecopy: (203) 453-6532 

	

	with
a copy to:

 Mark
Beigelman, Esq.

777 3rd Ave, 24th Floor

New York, New York 10017

Telephone: (212) 755-3100

Telecopy: (212) 755-7431 

11

 

        IN
WITNESS WHEREOF, the Company has caused this Warrant to be signed by its duly authorized officer. 

Date
of Grant: June 15, 2000 

	 	 	GFINET INC.
	

 	
 	
By:	

/s/  S. MCMILLAN      
 Name:  S. McMillan

Title:    C.O.O.

12

 

	To:	 	GFInet inc.

100 Wall Street

New York, NY 10005

 
 

NOTICE OF EXERCISE    
    

        The undersigned hereby exercises its rights to purchase
                         Warrant Shares covered by the within Warrant, pursuant to
Section 3(a) of such Warrant, and tenders payment herewith in the amount of $                         in
accordance with the terms thereof, and requests that certificates for such securities be issued in the name of, and delivered to: 

(Print
Name, Address and Social Security

or Tax Identification Number) 

and,
if such number of Warrant Shares shall not be all the Warrant Shares covered by the within Warrant, that a new Warrant for the balance of the Warrant Shares covered by the within Warrant be
registered in the name of, and delivered to, the undersigned at the address stated below. 

        The
undersigned represents that (i) it is entitled to exercise the Warrant for the number of shares indicated, and (ii) it is acquiring such Warrant Shares for its own
account for investment and not with a view to or for sale in connection with any distribution thereof (subject, however, to any requirement of law that the disposition thereof shall at all times be
within its control). 

	Dated:	 	 	 	Name:	 	 
	 	 	
	 	 	 	

	 	 	 	 	 	 	(Print)
	Address:	 	 	 	 	 	 
	 	 	
	 	 	 	

	 	 	 	 	 	 	(Signature)

(Signature
must conform in all respects to the name of the Holder as specified on the face of the Warrant) 

13

QuickLinks

WARRANT TO PURCHASE SHARES OF COMMON STOCK, PAR VALUE $.01 PER SHARE, OF GFINET INC.

NOTICE OF EXERCISE

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