Document:

Exhibit 4.4

 

REGISTRATION
RIGHTS AGREEMENT

 

dated
as of

 

March
10, 2000

 

among

 

GFInet
inc.

 

and

 

THE INVESTORS LISTED ON
SCHEDULE A TO THIS AGREEMENT

 

 

TABLE
OF CONTENTS

 

	
  ARTICLE
  I

  	
  DEFINITIONS

  	
   

  
	
   

  	
  1.1

  	
  Definitions

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  II

  	
  REGISTRATION
  RIGHTS

  	
   

  
	
   

  	
  2.1

  	
  Securities Subject to this
  Agreement

  	
   

  
	
   

  	
  2.2

  	
  Demand Registration

  	
   

  
	
   

  	
  2.3

  	
  Piggyback Registration

  	
   

  
	
   

  	
  2.4

  	
  Form
  S-3

  	
   

  
	
   

  	
  2.5

  	
  Registration Procedures

  	
   

  
	
   

  	
  2.6

  	
  Holders Cooperation

  	
   

  
	
   

  	
  2.7

  	
  Certain Rights of Holders

  	
   

  
	
   

  	
  2.8

  	
  Registration Expenses

  	
   

  
	
   

  	
  2.9

  	
  Indemnification;
  Contribution

  	
   

  
	
   

  	
  2.10

  	
  Participation
  in Underwritten Registrations

  	
   

  
	
   

  	
  2.11

  	
  Selection of Underwriters

  	
   

  
	
   

  	
  2.12

  	
  Market Stand-Off

  	
   

  
	
   

  	
  2.13

  	
  Transfer of
  Registration Rights

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
   MISCELLANEOUS

  	
   

  
	
   

  	
  3.1

  	
  Termination

  	
   

  
	
   

  	
  3.2

  	
  Entire Agreement

  	
   

  
	
   

  	
  3.3

  	
  Successors
  and Assigns

  	
   

  
	
   

  	
  3.4

  	
  Notices

  	
   

  
	
   

  	
  3.5

  	
  Headings

  	
   

  
	
   

  	
  3.6

  	
  Counterparts

  	
   

  
	
   

  	
  3.7

  	
  Choice of Law;
  Jurisdiction; Venue

  	
   

  
	
   

  	
  3.8

  	
  Specific Enforcement

  	
   

  
	
   

  	
  3.9

  	
  Amendment and Waivers

  	
   

  
						

 

 

REGISTRATION RIGHTS AGREEMENT

 

This REGISTRATION RIGHTS
AGREEMENT (the “Agreement”) is dated as of March 10, 2000 between GFInet inc.,
a Delaware corporation (the “Company”), and each of the Purchasers of shares of
the Company’s Series A Convertible Preferred Stock, $0.01 par value per share
(the “Preferred Stock”), pursuant to certain Subscription Agreements, dated of
even date herewith (the “Subscription Agreement”), whose names are set forth on
Schedule A hereto (individually, a “Purchaser” and collectively, the
“Purchasers”).

 

The parties hereto agree as
follows:

 

ARTICLE I

 

DEFINITIONS

 

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

 

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

 

“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 Subscription Agreement.

 

“Commission”
means the Securities and Exchange Commission.

 

“Common
Stock” means the 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 contemplated by
Section 2.3, 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.

 

 

“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.

 

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

 

“Qualified IPO” means the
commencement of 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.

 

“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
pursuant to Rule 144(k) (or any similar provision then in force) under the
Securities Act, and are freely tradable after such sale by the transferee,
(iii) 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 (iv) 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).

 

2

 

“Securities Act” means the
Securities Act of 1933, as amended.

 

“Subject Shares” mean the
Common Stock issued or issuable upon conversion of the Preferred Stock.

 

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

 

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

 

ARTICLE II

 

REGISTRATION RIGHTS

 

2.1                                 Securities
Subject to this
Agreement.

 

(a)               The Securities entitled to the benefits of
this Agreement are the Registrable Securities to be issued pursuant to the
conversion of the Preferred Stock purchased by the Purchasers pursuant to the
Subscription Agreement, but only 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.

 

2.2                                 Demand
Registration.  At any time after 180 days
following the Qualified IPO, the Holders of at least 66-2/3% of the then
outstanding Registrable Securities that have an aggregate market price of at
least $12.5 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. 
The Company shall use its reasonable efforts to cause such Demand
Registration to become effective not later than three (3) months after it
receives a 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. 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 within three
months of the time of such request, a registered public offering or is engaged
in any other activity which, in the good faith determination of the Board of
Directors of the Company, 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 180 days from the effective date of

 

3

 

such
offering or the date of completion of such other material activity, as the case
may be, such right to delay a request to be exercised by the Company not more
than once in any twelve-month or 365-day period. 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.

 

Each request for a Demand
Registration by the Initiating Holders shall state the amount of the
Registrable Securities proposed to be sold and the intended method of
disposition thereof. Upon a request for a Demand Registration, the Company
shall promptly take such steps as are necessary or appropriate to prepare for
the registration of the Registrable Securities to be registered.

 

2.3                                 Piggyback
Registration.

 

(a)                              At any time that the Company proposes to file
a Company Registration Statement, including one under Sections 2.2 or 2.4
hereunder, 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
Company Registration Statement. The Company shall use its best efforts to cause
all Registrable Securities specified in the Piggyback Notice to be included in
the Company 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 Company 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 the Company Registration
Statement filed in connection with such registration, the Company shall
determine for any reason not to register or to delay 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.

 

4

 

(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.

 

(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:

 

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

 

(B)                                second, any Registrable Securities requested
to be included in such registration and any other securities of the Company in
accordance with the priorities, if any, then existing among the holders of such
securities and pro rata among the holders thereof requesting such
registration on the basis of the number of shares of such securities requested
to be included by such holders.

 

2.4                                 Form S-3.  The
Company shall use its best efforts to qualify for registration on Form S-3 or
its successor form. After the Company has qualified for the use of Form S-3,
Holders of 25% 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
of 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 within three months of the time of such
request, a registered public offering or is engaged in any other activity
which, in the good faith determination of the Board of Directors of the
Company, would be adversely

 

5

 

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 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 to be exercised by the Company not more than once in any
one-year period.

 

(d)                                 Only one registration pursuant to such S-3
Registration Statement may be required hereunder during any twelve-month
period.

 

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.
Subject to the provisions of Section 2.5, the Company will use its best 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.

 

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
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 by the Company. If the managing underwriter
determines that marketing factors require a limitation of the number of shares
to be underwritten, the managing underwriter may limit the number of
Registrable Securities to be included in the registration and underwriting. The
Company shall so advise all Holders of Registrable Securities which would
otherwise be registered and underwritten pursuant to Sections 2.3 or 2.4, and
the number of shares of Registrable Securities that may be included in the
registration and underwriting shall be allocated among the Holders in
proportion, as nearly as practicable, to the respective amounts of securities
requested by such Holders to be included in such registration. 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 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:

 

6

 

(a)                                  use its commercially reasonable best 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 (i) if such Registration Statement is a
Company Registration Statement, 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 Company
Registration Statement or (ii) if such Registration Statement is a Demand
Registration Statement, for the applicable period set forth in Section 2.2
herein; 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;

 

(b)                                 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;

 

(c)                                  promptly furnish to each Holder of
Registrable Securities covered by any Registration Statement, and each
underwriter, if any, without charge, at least one conformed copy of any
Registration Statement, as first filed with the Commission, and of each
amendment thereto, including all documents incorporated by reference therein
and all exhibits (including exhibits incorporated therein by reference) and
such other documents as such Holder may reasonably request;

 

7

 

(d)                                 deliver to each Holder covered by any
Registration Statement, and each underwriter, if any,  without charge,  as many copies of the Prospectus (including
each preliminary prospectus) and any amendment or supplement thereto as such
person reasonably may request;

 

(e)                                  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 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
underwriter(s), 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 of
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.

 

8

 

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;

 

(f)                                    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;

 

(g)                                 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; 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;

 

(h)                                 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;

 

(i)                                     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;

 

(j)                                     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.

 

9

 

governmental
agencies or authorities as may be necessary to enable the Holders selling
Registrable Securities to consummate the disposition of such Registrable
Securities;

 

(k)                                  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;

 

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

 

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

 

(n)                                 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.

 

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 questionnaires, indemnities, and other documents 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 therefor, such information specified in Item 507
of Regulation S-K under the Securities Act or such other information as the
Company may reasonably request 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

 

10

 

opinion of counsel to the Company, such
failure impairs or may impair the viability of the offering or the legality of
the registration or the underlying offering.

 

(c)                                  The Holders holding shares included in the
registration will not (until further notice by the Company) effect sales
thereof (or deliver a prospectus to any purchaser) after receipt of telegraphic
or written notice from the Company to suspend sales to permit the Company to
correct or update a registration statement or prospectus. 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.

 

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.

 

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, which consent shall not be unreasonably withheld
or delayed.

 

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 per twelve-month period 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 for up to ten (10) states; (iii) all expenses of printing, messenger and
delivery services and telephone calls; (iv) all fees and disbursements of
counsel for the Company; and (v) 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

 

11

 

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, hear 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.

 

2.9                                 Indemnification;
Contribution.

 

(a)                                  The Company agrees to indemnify and hold
harmless (i) each Holder covered
by any Registration Statement, (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 themeaning 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”), to
the fullest extent lawful, 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) (collectively, “Claims”),
to which such indemnified Person
may become subject 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, 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) as a result of the use by
an indemnified Person of any
Prospectus when, upon receipt of a Black-Out Notice or 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.
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.

 

12

 

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 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 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) (x) with respect to actions based on 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, any matters 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) such matters which result from the use by an indemnified
Person of any Prospectus when, upon receipt of a Black-Out Notice or a notice
from the Company of the

 

13

 

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 gross proceeds, if any,
received by such Purchaser 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 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 benefits received
by the Company on the one hand and the Holder on the other hand from sale of Registrable
Securities 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 benefits referred to in clause (i) above but also 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, 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

 

14

 

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.

 

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.

 

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.

 

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.”

 

2.12                           Market Stand-Off.  In consideration for the
Company agreeing to its obligations under this Agreement, each Holder agrees in
connection with any 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
the 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.

 

2.13                           Transfer
of Registration Rights.  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 any partner, member or shareholder of such Holder, to
any other Holder, or to a transferee or assignee who (i) receives at least
1,000,000 shares of Registrable Securities (as adjusted for stock splits and
the like); provided, that the Company is given written notice by the Holder at
the time of or within a reasonable time after said transfer, stating the name
and address of said transferee or assignee and identifying the securities with
respect to which such registration rights are being assigned or

 

15

 

(ii) receives less than 1,000,000 shares of
Registrable Securities if the Company provides such Holder with prior written
approval of such transfer.

 

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.

 

ARTICLE III

 

MISCELLANEOUS

 

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 remain outstanding and (ii) the close of business
on the third anniversary of the Company’s Qualified IPO.

 

3.2                                 Entire
Agreement.  This
Agreement, together with the Subscription 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.

 

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; provided,  however, that this
Agreement shall not inure to the benefit of or be binding upon a successor or
assign of a Holder unless and to the extent such successor or assign acquired
Registrable Securities from such Holder at a time when such Holder could not
transfer such Registrable Securities pursuant to any Registration Statement or
pursuant to Rule 144 under the Securities Act as contemplated by clause (ii) of
the definition of Registrable Securities.

 

16

 

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 telecopy (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 telecopy 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
telecopier 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

  	
   

  	
  to such 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.

  
	
   

  	
   

  	
   

  
	
  if to the Company:

  	
   

  	
  at the address set forth in the Subscription
  Agreement.

  
	
   

  	
   

  	
   

  
	
  with copies to: Greenberg Traurig, LLP

  	
   

  	
   

  
	
   

  	
   

  	
  Met Life Building

  
	
   

  	
   

  	
  200 Park Avenue

  
	
   

  	
   

  	
  New York, New York 10166

  
	
   

  	
   

  	
  Attn: Andrew J. Cosentino, Esq.

  
	
   

  	
   

  	
  Telephone Number: (212) 801-9304

  
	
   

  	
   

  	
  Fax: (212) 801-6400 and (212) 805-9304

  

 

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

 

3.6                                 Counterparts.  This Agreement may be executed 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.

 

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

 

17

 

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 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.

 

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.

 

3.9                                 Amendment and Waivers.  The provisions of this
Agreement may not be amended, modified or supplemented, and waivers or consents
to or departures from the provisions hereof may not be given unless the Company
has obtained the written consent of Holders of a majority of the then
outstanding Registrable Securities.

 

 

[The remainder of this page is intentionally left blank.]

 

18

 

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.

 

 

	
   

  	
  GFInet inc.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert Crossan

  
	
   

  	
   

  	
  Name: Robert
  Crossan

  
	
   

  	
   

  	
  Title: Chief Financial
  Officer

  

 

	
   

  	
   

  
	
   

  	
  Argonaut P.E.M.

  
	
   

  	
  Investor

  
	
   

  	
   

  

 

	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Geoffrey Kalish

  
	
   

  	
   

  	
  Name: Geoffrey
  Kalish

  
	
   

  	
   

  	
  Title: Managing Director

  

 

19

 

 

	
   

  	
   

  
	
   

  	
  Gamma-GFI LP

  
	
   

  	
  Investor

  
	
   

  	
   

  

 

	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Alec Petro

  
	
   

  	
   

  	
  Name: Alec Petro

  
	
   

  	
   

  	
  Title: M. D.

  

 

 

20

 

 

	
   

  	
   

  
	
   

  	
  Magnetic Holdings International (FE) LLC

  
	
   

  	
  Investor

  
	
   

  	
   

  

 

	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David A. Lifson

  
	
   

  	
   

  	
  Name: David A.
  Lifson

  
	
   

  	
   

  	
  Title: Manager of Magnetic
  Management LLC, Managing Member of Magnetic Holdings International (FE) LLC

  

 

 

21

 

 

	
   

  	
   

  
	
   

  	
  Magnetic Holdings International (DE) LLC

  
	
   

  	
  Investor

  
	
   

  	
   

  

 

	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David A. Lifson

  
	
   

  	
   

  	
  Name: David A.
  Lifson

  
	
   

  	
   

  	
  Title: Manager of Magnetic
  Management LLC, Managing Member of Magnetic Holdings International (DE) LLC

  

 

 

22

 

 

	
   

  	
   

  
	
   

  	
  Magnetic Holdings International (DNE) LLC

  
	
   

  	
  Investor

  
	
   

  	
   

  

 

	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David A. Lifson

  
	
   

  	
   

  	
  Name: David A.
  Lifson

  
	
   

  	
   

  	
  Title: Manager of Magnetic
  Management LLC, Managing Member of Magnetic Holdings International (DNE) LLC

  

 

 

23

 

	
   

  	
   

  	
  CMS CO-INVESTMENT SUBPARTNERSHIP, a Delaware general
  partnership

  
	
   

  	
   

  	
  By:

  	
   

  	
  CMS Co-Investment Partners, L.P. a Delaware limited
  parntership

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
  CMS/Co-Investment Associates, L.P., a Delaware
  limited partnership

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
  MSPS/Co-Investment, Inc., a Delaware corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Thomas D. Fridio

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Its: Vice President

  

 

	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
  CMS 1997 Investment Partners, L.P., a Delaware
  limited parntership

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
  CMS 1997, Inc., a Delaware corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Thomas D. Fridio

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Its: Vice President

  

 

	
   

  	
   

  	
  By:

  	
   

  	
  CMS Co-Investment Partners, I-Q L.P. a Delaware
  limited parntership

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
  CMS/Co-Investment Associates, L.P., a Delaware
  limited partnership

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
  MSPS/Co-Investment, Inc., a Delaware corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Thomas D. Fridio

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Its: Vice President

  

 

	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
  CMS 1997 Investment Partners, L.P., a Delaware
  limited parntership

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
  CMS 1997, Inc., a Delaware corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Thomas D. Fridio

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Its: Vice President

  

 

 

24

 

	
   

  	
   

  
	
   

  	
  Brown Brothers Harriman & Co.

  
	
   

  	
  Investor

  
	
   

  	
   

  

 

	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ W. Carter Sullivan III

  
	
   

  	
   

  	
  Name: W. Carter
  Sullivan III

  
	
   

  	
   

  	
  Title: Partner

  

 

 

25

 

	
   

  	
   

  
	
   

  	
  Gamma Fund I LP

  
	
   

  	
  Investor

  
	
   

  	
   

  

 

	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John Culbertson

  
	
   

  	
   

  	
  Name: John
  Culbertson

  
	
   

  	
   

  	
  Title: Exec. Comm. Member

  

 

 

26

 

	
   

  	
   

  
	
   

  	
  H & Q Employee Venture Fund 2000, L.P.

  
	
   

  	
  Investor

  
	
   

  	
   

  

 

	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas Szymoniak

  
	
   

  	
   

  	
  Name: Thomas
  Szymoniak

  
	
   

  	
   

  	
  Title: Attorney-in-Fact

  

 

 

27

 

	
   

  	
   

  
	
   

  	
  AHP Holdings LP

  
	
   

  	
  Investor

  
	
   

  	
   

  

 

	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Alec Petro

  
	
   

  	
   

  	
  Name: Alec Petro

  
	
   

  	
   

  	
  Title: Managing Partner

  

 

 

28

 

	
   

  	
   

  
	
   

  	
  Hambrecht & Quist California

  
	
   

  	
  Investor

  
	
   

  	
   

  

 

	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas Szymoniak

  
	
   

  	
   

  	
  Name: Thomas
  Szymoniak

  
	
   

  	
   

  	
  Title: Attorney-in-Fact

  

 

 

29

 

	
   

  	
   

  
	
   

  	
  Access Technology Partners Brokers Fund, L.P.

  
	
   

  	
  Investor

  
	
   

  	
   

  

 

	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas Szymoniak

  
	
   

  	
   

  	
  Name: Thomas
  Szymoniak

  
	
   

  	
   

  	
  Title: Attorney-in-Fact

  

 

 

30

 

	
   

  	
   

  
	
   

  	
  Access Technology Partners, L.P.

  
	
   

  	
  Investor

  
	
   

  	
   

  

 

	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas Szymoniak

  
	
   

  	
   

  	
  Name: Thomas
  Szymoniak

  
	
   

  	
   

  	
  Title: Attorney-in-Fact

  

 

 

31

 

	
   

  	
   

  
	
   

  	
  N J Brown

  
	
   

  	
  Investor

  
	
   

  	
   

  

 

	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Nicholas J Brown

  
	
   

  	
   

  	
  Name: Nicholas J
  Brown

  
	
   

  	
   

  	
  Title: Individual

  

 

 

32

 

	
   

  	
   

  
	
   

  	
  Magnetic Holdings International (FNE) LLC

  
	
   

  	
  Investor

  
	
   

  	
   

  

 

	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David A. Lifson

  
	
   

  	
   

  	
  Name: David A.
  Lifson

  
	
   

  	
   

  	
  Title: Manager of Magnetic
  Management LLC, Managing Member of Magnetic Holdings International (FNE) LLC

  

 

 

33

 

SCHEDULE A

 

	
  Name and
  Address of Investor

  	
   

  	
  No. of
  Subject Shares

  
	
  Magnetic Holdings
  International LLC (DE)

  	
   

  	
  3,677,500

  
	
  Magnetic Holdings
  International LLC (DNE)

  	
   

  	
  2,497,500

  
	
  Magnetic Holdings
  International LLC (FE)

  	
   

  	
  1,013,000

  
	
  Magnetic Holdings
  International LLC (FNE)

  	
   

  	
  350,000

  
	
  Gamma GFI LP

  	
   

  	
  2,675,000

  
	
  Argonaut GFI LLC

  	
   

  	
  12,792,000

  
	
  Brown Brothers Harriman
  & Co.

  	
   

  	
  250,000

  
	
  CMS Co-Investment
  Partnership LP

  	
   

  	
  500,000

  
	
  Access Technology
  Partners, LP

  	
   

  	
  800,000

  
	
  Access Technology Partners
  Brokers Fund, LP

  	
   

  	
  16,000

  
	
  Hambrecht & Quist
  California

  	
   

  	
  134,000

  
	
  H&Q Employee Venture
  Fund 2000

  	
   

  	
  50,000

  
	
  Nicholas Brown

  	
   

  	
  475,000

  
	
  AHP Holdings LP

  	
   

  	
  750,000

  
	
  Gamma Fund I LLP

  	
   

  	
  500,000

  
	
  Londonderry Management
  Corp.

  	
   

  	
  500,000

  
	
  Chase Securities Inc.

  	
   

  	
  20,000

  
	
   

  	
   

  	
  27,000,000

  

 

 

AMENDMENT
AGREEMENT

 

This Amendment Agreement
(the “Amendment”), dated as of November 30, 2001, is made by and among GFI
Group Inc. (“Group”), GFInet inc. (“Net”), the stockholders of
Net listed on the signature pages hereto (the “Stockholders”).

 

WHEREAS, Net and the
Stockholders are party to a Registration Rights Agreement, dated as of March
10, 2000 (the “Registration Agreement”); and

 

WHEREAS, Group and Net are
party to a Merger Agreement dated as of August 8, 2001, as amended (the “Merger
Agreement”) pursuant to which Net will merge with and into a wholly-owned
subsidiary of Group (the “Merger”) with Net continuing as the surviving
corporation; and in the Merger each share of Net common stock will be converted
into a share of Class B common stock, par value $.01 per share, of Group (“Group
Class B Common Stock”) and each share of Series A Preferred Stock of Net
will be converted into a share of Series A Preferred Stock, par value $.01 per
share, of Group (“Group Series A Preferred Stock”); and

 

WHEREAS, the parties hereto
desire to effect certain amendments to the Registration Agreement to reflect
the Merger and the conversion of Net capital stock into shares of Group capital
stock pursuant to the Merger.

 

NOW, THEREFORE, in
consideration of the mutual premises and covenants and agreements set forth
herein, the parties hereto hereby agree as follows:

 

1.                                       The Registration Agreement is hereby amended,
effective as of the effective time of the Merger, to substitute Group for Net
as the “Company” party to the Registration Agreement and to acknowledge that
the Group Class B Common Stock issuable upon conversion of the Group Series A
Preferred Stock received in the Merger by the Stockholders will be the “Subject
Shares” subject to the Registration Agreement.

 

2.                                       Except as expressly amended and modified by
this Amendment, the Registration Agreement is hereby ratified and confirmed and
shall continue in full force and effect in accordance with its terms.

 

3.                                       This Amendment shall be governed by and
construed in accordance with the laws of the State of New York.

 

4.                                       This Amendment may be executed in any number
of counterparts, each of which shall constitute an integral part of one and the
same original agreement.

 

 

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

 

	
   

  	
  GFI GROUP INC.

  	 

	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael Gooch

  
	
   

  	
   

  	
  Name:

  	
  Michael Gooch

  
	
   

  	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  GFInet
  inc.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steve Ellis

  
	
   

  	
   

  	
  Name:

  	
  Steve Ellis

  
	
   

  	
   

  	
  Title:

  	
  Chief
  Financial Officer

  
					

 

2

 

	
   

  	
  STOCKHOLDERS:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Access Technology Partners, LP

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas Szymoniak

  
	
   

  	
   

  	
  Name:

  	
  Thomas Szymoniak

  
	
   

  	
   

  	
  Title:

  	
  Attorney-In-Fact

  

 

	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Access Technology Partners Brokers Fund LP

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas Szymoniak

  
	
   

  	
   

  	
  Name:

  	
  Thomas Szymoniak

  
	
   

  	
   

  	
  Title:

  	
  Attorney-In-Fact

  

 

	
   

  	
   

  	
   

  	
   

  
	
   

  	
  AHP Holdings LP

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Alec Petro

  
	
   

  	
   

  	
  Name:

  	
  Alec Petro

  
	
   

  	
   

  	
  Title:

  	
  G.P. - AHP holdings

  

 

	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Brown Brothers Harriman & Co.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ W. Carter Sullivan III

  
	
   

  	
   

  	
  Name:

  	
  W. Carter Sullivan III

  
	
   

  	
   

  	
  Title:

  	
  Partner

  

 

	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Chase Securities Inc.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ J. Ryan McBride

  
	
   

  	
   

  	
  Name:

  	
  J. Ryan McBride

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  

 

	
   

  	
   

  	
   

  	
   

  
	
   

  	
  CMS Co-Investment Partnership LP

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ingrid R. Welch

  
	
   

  	
   

  	
  Name:

  	
  Ingrid R. Welch

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  

 

3

 

	
   

  	
  Gamma GFI LP

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Blake A. Banky

  
	
   

  	
   

  	
  Name:

  	
  Blake A. Banky,

  Gamma Investors LLC, 175 GP

  
	
   

  	
   

  	
  Title:

  	
  Executive Committee

  

 

	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Gamma Fund I LLP

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Blake A. Banky

  
	
   

  	
   

  	
  Name:

  	
  Blake A. Banky,

  Gamma Investors LLC, 175 GP.

  
	
   

  	
   

  	
  Title:

  	
  Executive Committee

  

 

	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Hambrecht & Quist
  California

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas Szymoniak

  
	
   

  	
   

  	
  Name:

  	
  Thomas Szymoniak

  
	
   

  	
   

  	
  Title:

  	
  Attorney-In-Fact

  

 

	
   

  	
   

  	
   

  	
   

  
	
   

  	
  H&Q Employee Venture
  Fund 2000

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas Szymoniak

  
	
   

  	
   

  	
  Name:

  	
  Thomas Szymoniak

  
	
   

  	
   

  	
  Title:

  	
  Attorney-In-Fact

  

 

	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Londonderry Management
  Corp.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kevin J. McGrath

  
	
   

  	
   

  	
  Name:

  	
  Kevin J. McGrath

  
	
   

  	
   

  	
  Title:

  	
  President

  

 

	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Magnetic Holdings
  International LLC (DE)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert Crossan

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

4

 

	
   

  	
  Magnetic Holdings
  International LLC (DNE)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert Crossan

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
					

 

	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Magnetic Holdings
  International LLC (FE)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert Crossan

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
					

 

	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Magnetic Holdings
  International LLC (FNE)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert Crossan

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ NJ Brown

  
	
   

  	
   

  	
  Nick Brown

  	
   

  
					

 

	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Venturion Capital

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Geoffrey Kalish

  
	
   

  	
   

  	
  Name:

  	
  Geoffrey Kalish

  
	
   

  	
   

  	
  Title:

  	
  Managing Member

  
					

 

5

AMENDMENT
NO. 2 TO THE REGISTRATION RIGHTS AGREEMENT

 

This AMENDMENT NO. 2 TO THE
REGISTRATION RIGHTS AGREEMENT (this “Amendment”), is made and entered
into this 3rd  day of June, 2002,
by and among GFI Group Inc., a Delaware corporation (the “Company”), and
the parties listed on the signature pages hereto (collectively, the “Holders”).

 

BACKGROUND:

 

The Company and each of the
Holders are parties to a Registration Rights Agreement, dated as of March 10,
2000, as amended by the Amendment Agreement dated as of November 30, 2001, by
and among the Company, GFInet inc. and the stockholders listed on the signature
pages thereto (collectively, the “Original Agreement”). Capitalized
terms used in this Amendment and not otherwise defined in this Amendment shall
have the meanings ascribed to them in the Original Agreement.

 

The Original Agreement, inter
alia, granted to the Holders certain rights relating to the registration
of Registrable Securities. Pursuant to Section 2.3 of the Original Agreement,
the Company granted each of the Holders and each of the other signatories to
the Original Agreement (each a “Purchaser” and collectively, the “Purchasers”)
the right to require the Company to include all of such Purchaser’s Registrable
Securities at any time that the Company proposes to file a Company Registration
Statement or upon a Demand Registration pursuant to the terms and conditions
stated therein. The Holders and the Company further agreed that the ability to
participate in any such registration would be limited in accordance with the
terms of the Original Agreement. In order to clarify those terms which limit
such participation, the Holders and the Company are entering into this
Amendment.

 

Pursuant to Section 3.9 of
the Original Agreement, the provisions of the Original Agreement may be amended
if the Company obtains the written consent of the holders of a majority of the
Registrable Securities then outstanding. The Holders hold a majority of the
Registrable Securities outstanding as of the date of this Amendment.

 

NOW, THEREFORE, in
consideration of the mutual covenants and obligations contained herein, and
intending to be legally bound, the parties, subject to the terms and conditions
set forth herein, agree as follows:

 

ARTICLE
1

AMENDMENT TO ORIGINAL AGREEMENT

 

1.1.                                                                              Amendment and Restatement of the Qualified
IPO definition. The
definition of “Qualified IPO” in Section 1.1 of the Original Agreement is
hereby amended and restated as follows:

 

“
‘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 Class B 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.”

 

1.2.                                                                              Addition to Section 2.2 of the Original
Agreement. A new paragraph
shall be added to Section 2.2 of the Original Agreement at the end of such
section and shall read, in its entirety:

 

“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,

 

(1)                                  in the event there are no holders of the
Company’s Series C Convertible Preferred Stock, $0.01 par value per share (each
a “Series C Holder”) electing to participate in the Demand Registration, then
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 under this
Agreement, such number of securities as is determined by multiplying (a) the
securities able to be registered as determined by the managing underwriter, by
(b) the fraction of (i) the aggregate number of securities of the Company that
such party proposes to include in such registration divided by (ii) 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 under this
Agreement;

 

(2)                                  in the event there are Series C Holders
electing to participate in the Demand Registration and the holders initiating
the Demand Registration initiated such registration pursuant to their 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), then

 

(i)                                     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 under this Agreement, such number of
securities as is determined by multiplying (i) seventy-five percent (75%) of
the number of

 

2

 

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 under this Agreement; and

 

(ii)                                  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;

 

(3)                                  in the event there are Series C Holders
electing to participate in the Demand Registration and any of the holders
initiating the Demand Registration has (alone or together with other
shareholders) additional contractual demand registration rights (or was
permitted (alone or together with other shareholders) to exercise a previously
exercised contractual demand registration right), then 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 Agreement and each
of the Series C Holders, such number of securities as is determined by
multiplying (a) the securities able to be registered as determined by the
managing underwriter, by (b) the fraction of (i) the aggregate number of
securities of the Company that such party proposes to include in such
registration divided by (ii) 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;

 

3

 

(b)                                 second, for each 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 (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.”

 

1.3.                                                                              Amendment to the first sentence of Section
2.3(a) of the Original Agreement. The first sentence of Section 2.3(a) of the Original Agreement shall
be amended and restated as follows:

 

“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.”

 

1.4.                                                                              Amendment to Section 2.3(b) of the Original
Agreement. Section 2.3(b) of
the Original Agreement shall be amended and restated as follows:

 

“(b)                           The Company’s obligation to include
Registrable Securities in a Company Registration Statement 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

 

4

 

Company is so advised can be
sold in such offering without adversely affecting the offering, determined as
follows:

 

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

 

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

 

(II)                                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 number of the securities of the Company that such
Series C Holder proposes to include in such registration divided by (ii) the
total number of securities proposed to be sold in such offering by all Series C
Holders;

 

(III)                            third, for each remaining holder of the
Company’s securities who holds contractual piggyback registration rights, other
than the holders described above in clauses (I) and (II) (including the Holders
of Registrable Securities hereunder), if any, the fraction of such holder’s
securities proposed to be registered which is obtained by dividing (i) the
number of the securities of the Company that such holder proposes to include in
such registration by (ii) the total number of securities proposed to be sold in
such offering by such holders; and

 

(IV)                            fourth, for each remaining holder of the
Company’s securities, other than the holders described above in clauses (I),
(II) and (III), 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.

 

(B)                                In the event a Series C Holder initiated such
registration:

 

(I)                                    first, for each Series C Holder, such number
of securities as is determined by multiplying (a) the 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 Series C Holder
proposes to include in such registration divided by (ii) the total number of
securities proposed to be sold in such offering by all Series C Holders;

 

5

 

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

 

(III)                            third, for the Company and each remaining
holder of the Company’s securities, other than the holders described above in
clauses (I) and (II), 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.

 

(C)                                In the event that a shareholder other than a
Series C Holder initiated such registration pursuant to demand registration
rights granted under another agreement;

 

(I)                                    first,

 

(i)                                     in the event there are no holders of the
Company’s Series C Convertible Preferred Stock, $0,01 par value per share (each
a “Series C Holder”) electing to participate in the demand registration, then
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 (a) the securities able to
be registered as determined by the managing underwriter, by (b) the fraction of
(i) the aggregate number of securities of the Company that such party proposes
to include in such registration divided by (ii) 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;

 

(ii)                                  in the event there are Series C Holders
electing to participate in the demand registration and any of the holders
initiating the demand registration initiated such registration pursuant to
their only contractual demand registration right (and such shareholder was not
permitted (alone or together with other

 

6

 

shareholders) to exercise a
previously exercised contractual demand registration right), then

 

(1)                                  for each holder initiating the demand
registration and each holder permitted 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

 

(2)                                  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;

 

(iii)                               in the event there are Series C Holders
electing to participate in the demand registration and any of the holders
initiating the demand registration has (alone or together with other
shareholders)

 

7

 

additional contractual
demand registration rights (or was permitted (alone or together with other
shareholders) to exercise a contractual demand registration right), then 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, such number of securities as is determined by multiplying
(a) the securities able to be registered as determined by the managing
underwriter, by (b) the fraction of (i) the aggregate number of securities of
the Company that such party proposes to include in such registration divided by
(ii) 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;

 

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

 

(III)                            third, for the Company and each remaining
holder of the Company’s securities, other than the holders described above in
clause (I) and (II), 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.”

 

ARTICLE
2

General Provisions

 

2.1.                              Confirmation of Original Agreement. 
Except as expressly amended and modified by this Amendment, the Original
Agreement is hereby ratified and confirmed and shall continue in full force and
effect in accordance with its terms.

 

2.2.                              Interpretation.   The
headings contained in this Amendment are for reference purposes only and shall
not affect in any way the meaning or interpretation of this Amendment.

 

2.3.                              Counterparts.  
This Amendment may be executed by facsimile and in one or more
counterparts, each of which shall be an original, but all of which together
shall constitute but one and the same instrument.

 

8

 

2.4.                              Entire Agreement; No Third-Party
Beneficiaries.   This Amendment and the Agreement,
collectively constitute the entire agreement and supersedes all prior
agreements and understandings, both written and oral, among the parties with
respect to the subject matter of this Amendment and are not intended to confer
upon any person, other than the Purchasers and the parties hereto, any rights
or remedies hereunder.

 

2.5.                             Governing Law.   This
Amendment shall be governed by, and construed in accordance with, the laws of
the State of New York.

 

[The rest of this page left  intentionally blank. Signature pages follow.]

 

9

 

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

 

	
   

  	
  COMPANY:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  GFI GROUP INC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ S. McMillan

  
	
   

  	
   

  	
  Name:

  	
  S. McMILLAN

  
	
   

  	
   

  	
  Title:

  	
  C.O.O.

  
	
   

  	
   

  	
   

  	
   

  

 

	
   

  	
   

  	
   

  	
   

  
	
   

  	
  HOLDERS:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Access Technology Partners, LP

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas Szymoniak

  
	
   

  	
   

  	
  Name:

  	
  Thomas Szymoniak

  
	
   

  	
   

  	
  Title:

  	
  Attorney-in-Fact

  
	
   

  	
   

  	
   

  	
   

  

 

	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Access Technology Partners Brokers Fund LP

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas Szymoniak

  
	
   

  	
   

  	
  Name:

  	
  Thomas Szymoniak

  
	
   

  	
   

  	
  Title:

  	
  Attorney-in-Fact

  
	
   

  	
   

  	
   

  	
   

  

 

	
   

  	
   

  	
   

  	
   

  
	
   

  	
  AHP Holdings LP

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Alec Petro

  
	
   

  	
   

  	
  Name:

  	
  Alec Petro

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  	
   

  	
   

  

 

	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Brown Brothers Harriman & Co.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ W. Carter Sullivan III

  
	
   

  	
   

  	
  Name:

  	
  W. Carter Sullivan III

  
	
   

  	
   

  	
  Title:

  	
  Partner

  

 

	
   

  	
   

  	
   

  	
   

  
	
   

  	
  J.P. Morgan Securities Inc.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ [ILLEGIBLE]

  

 

10

 

	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  CMS Co-Investment Sub Partnership

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas F. D. Fridio

  
	
   

  	
   

  	
  Name:

  	
  Thomas F. D. Fridio

  
	
   

  	
   

  	
  Title:

  	
  Authorized Signatory

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Gamma GFI LP

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Alec Petro

  
	
   

  	
   

  	
  Name:

  	
  Alec Petro

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Gamma Fund I LLP

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Alec Petro

  
	
   

  	
   

  	
  Name:

  	
  Alec Petro

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Hambrecht & Quist California

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas Szymoniak

  
	
   

  	
   

  	
  Name:

  	
  Thomas Szymoniak

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Attorney-in-Fact

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  H&Q Employee Venture Fund 2000

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas Szymoniak

  
	
   

  	
   

  	
  Name:

  	
  Thomas Szymoniak

  
	
   

  	
   

  	
  Title:

  	
  Attorney-in-Fact

  
	
   

  	
   

  	
   

  
	
   

  	
  Londonderry Management Corp.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kevin J. McGrath

  
	
   

  	
   

  	
  Name:

  	
  Kevin J. McGrath

  
	
   

  	
   

  	
  Title:

  	
  President

  
						

 

11

 

	
   

  	
  Magnetic Holdings International LLC (DE)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert Crossan

  
	
   

  	
   

  	
  Name:

  	
  Robert Crossan

  
	
   

  	
   

  	
  Title:

  	
  CFO, Magnetic Management LLC

  

 

 

	
   

  	
  Magnetic Holdings International LLC (DNE)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert Crossan

  
	
   

  	
   

  	
  Name:

  	
  Robert Crossan

  
	
   

  	
   

  	
  Title:

  	
  CFO, Magnetic Management LLC

  

 

	
   

  	
  Magnetic Holdings International LLC (FE)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert Crossan

  
	
   

  	
   

  	
  Name:

  	
  Robert Crossan

  
	
   

  	
   

  	
  Title:

  	
  CFO, Magnetic Management LLC

  

 

	
   

  	
  Magnetic Holdings International LLC (FNE)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert Crossan

  
	
   

  	
   

  	
  Name:

  	
  Robert Crossan

  
	
   

  	
   

  	
  Title:

  	
  CFO, Magnetic Management LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ NJ Brown

  
	
   

  	
   

  	
  Nick Brown

  

 

	
   

  	
  Venturion Capital

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Geoffery Kalish

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
					

 12Exhibit 4.5

 

REGISTRATION RIGHTS AGREEMENT

 

dated as of

 

June
1, 2000

 

among

 

GFInet inc.

 

and

 

THE HOLDERS LISTED ON SCHEDULE A TO THIS AGREEMENT

 

 

TABLE
OF CONTENTS

 

	
  ARTICLE I

  	
  DEFINITIONS

  	
   

  
	
   

  	
  1.1

  	
  Definitions

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
  REGISTRATION RIGHTS

  	
   

  
	
   

  	
  2.1

  	
  Securities Subject to this Agreement

  	
   

  
	
   

  	
  2.2

  	
  Piggyback
  Registration

  	
   

  
	
   

  	
  2.3

  	
  Registration
  Procedures

  	
   

  
	
   

  	
  2.4

  	
  Holders
  Cooperation

  	
   

  
	
   

  	
  2.5

  	
  Certain
  Rights of Holders

  	
   

  
	
   

  	
  2.6

  	
  Registration
  Expenses

  	
   

  
	
   

  	
  2.7

  	
  Indemnification;
  Contribution

  	
   

  
	
   

  	
  2.8

  	
  Participation in Underwritten
  Registrations

  	
   

  
	
   

  	
  2.9

  	
  Selection of Underwriters

  	
   

  
	
   

  	
  2.10

  	
  Market Stand-Off

  	
   

  
	
   

  	
  2.11

  	
  Rule 144

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
  MISCELLANEOUS

  	
   

  
	
   

  	
  3.1

  	
  Termination

  	
   

  
	
   

  	
  3.2

  	
  Entire Agreement

  	
   

  
	
   

  	
  3.3

  	
  Successors
  and Assigns

  	
   

  
	
   

  	
  3.4

  	
  Notices

  	
   

  
	
   

  	
  3.5

  	
  Headings

  	
   

  
	
   

  	
  3.6

  	
  Counterparts

  	
   

  
	
   

  	
  3.7

  	
  Choice of Law; Jurisdiction; Venue

  	
   

  
	
   

  	
  3.8

  	
  Specific
  Enforcement

  	
   

  
	
   

  	
  3.9

  	
  Additional
  Holders

  	
   

  
	
   

  	
  3.10

  	
  Amendment
  and Waivers

  	
   

  

 

i

 

REGISTRATION RIGHTS AGREEMENT

 

This REGISTRATION RIGHTS AGREEMENT (the “Agreement”) is dated as of
June 1, 2000 between GFlnet inc., a Delaware corporation (the “Company”), and
each of the holders of shares of the Company’s Series B Convertible Preferred
Stock, par value $0.01 per share (the “Series B Preferred Stock”), whose names
are set forth on Schedule A hereto.

 

The parties hereto agree as follows:

 

ARTICLE I

 

DEFINITIONS

 

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

 

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

 

“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.

 

“Commission”
means the Securities and Exchange Commission.

 

“Common
Stock” means the 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 a 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 Company Registration Statement.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

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

 

“IPO”
means the commencement of 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.

 

“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.

 

“Prospectus”
means the prospectus included in any Company 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.

 

“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
pursuant to Rule 144(k) (or any similar provision then in force) under the
Securities Act, and are freely tradable after such sale by the transferee,
(iii) 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 (iv) such Securities shall have ceased to be outstanding.

 

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

 

“Securities
Act” means the Securities Act of 1933, as amended.

 

“Series
B Preferred Stock” shall have the meaning given to it in the Preamble hereof.

 

“Subject
Shares” mean the Common Stock issued or issuable upon conversion of the Series
B Preferred Stock.

 

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

 

ARTICLE II

 

REGISTRATION RIGHTS

 

2.1                                 Securities Subject to this Agreement.

 

(a)                                  The Securities entitled to the benefits of
this Agreement are the Registrable Securities to be issued pursuant to the
conversion of the Series B Preferred Stock, but only 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.

 

2

 

 

2.2                                 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 Company Registration Statement. The Company shall use
its best efforts to cause all Registrable Securities specified in the Piggyback
Notice to be included in the Company 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 Company 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 the
Company Registration Statement filed in connection with such registration, the
Company shall determine for any reason not to register or to delay 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
2.2(a) shall be subject to the following limitations:

 

(i)             the Company shall not be required to include
any Registrable Securities in the Company Registration Statement filed in
connection with its 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.

 

(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

 

3

 

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:

 

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

 

(B)                                second, any Registrable Securities requested
to be included in such registration and any other securities of the Company in
accordance with the priorities, if any, then existing among the holders of such
securities and pro  rata among the holders thereof requesting such
registration on the basis of the number of shares of such securities requested
to be included by such holders.

 

2.3           Registration Procedures.  If any registration pursuant to Section 2.2
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 2.2 shall be conditioned upon such Holder’s participation in such
underwriting and the inclusion of such Holder’s Registrable Securities in the
underwriting to the extent provided herein. 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 by the Company. If the managing
underwriter determines that marketing factors require a limitation of the
number of shares to be underwritten, the managing underwriter may limit the
number of Registrable Securities to be included in the registration and
underwriting. The Company shall so advise all Holders of Registrable Securities
which would otherwise be registered and underwritten pursuant to Section 2.2,
and the number of shares of Registrable Securities that may be included in the
registration and underwriting shall be allocated among the Holders in
proportion, as nearly as practicable, to the respective amounts of securities
requested by such Holders to be included in such registration. 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 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 Company 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)                                  use its commercially reasonable best efforts
to prepare and file with the Commission such amendments and post-effective
amendments to such Company Registration Statement as may be necessary to keep
such Company 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
Company

 

4

 

Registration Statement; 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 Company Registration Statement during the applicable
period in accordance with the intended method or methods of distribution by the
sellers thereof set forth in such Company Registration Statement or supplement
or the Prospectus;

 

(b)                                 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 Company 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 Company
Registration Statement or post-effective amendments to such Company 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 Company
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 Company 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 Company
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 Company 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;

 

(c)                                  promptly furnish to each Holder of
Registrable Securities covered by any Company Registration Statement, and each
underwriter, if any, without charge, at least one conformed copy of any Company
Registration Statement, as first filed with the Commission, and of each
amendment thereto, including all documents incorporated by reference therein
and all exhibits (including exhibits incorporated therein by reference) and
such other documents as such Holder may reasonably request;

 

(d)                                 deliver to each Holder covered by any Company
Registration Statement, and each underwriter, if any, without charge, as many
copies of the Prospectus (including each preliminary prospectus) and any
amendment or supplement thereto as such person reasonably may request;

 

(e)                                  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

 

5

 

underwriter(s), if any) required in order to expedite or facilitate the
disposition of such Registrable Securities pursuant to such Company
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 Company 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 Company
Registration Statement are to be made to an underwriter(s)) and dated the date
of effectiveness of any Company Registration Statement (and, in the case of any
underwritten sale of securities pursuant to such Company 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 Company Registration Statement
(and, in the case of any underwritten sale of securities pursuant to such
Company 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 Company
Registration Statement are to be made to an underwriter(s));

 

(iv)                              provide for the indemnification provisions
and procedures of Section 2.7 hereof with respect to selling Holders and the
underwriter(s), 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 of
not sales of securities pursuant to such Company Registration Statement are to
be made to an underwriter(s), with such documents and certificates to be dated
the date of effectiveness of any Company 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;

 

6

 

(f)                                    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 Company 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 Company 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 2.3, 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;

 

(g)                                 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; 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;

 

(h)                                 use its reasonable efforts to cause the
disposition of the Registrable Securities covered by any Company 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;

 

(i)                                     if any fact or event contemplated by Section
2.3(b) shall exist or have occurred, use reasonable efforts to prepare a
supplement or post-effective amendment to any Company 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;

 

(j)                                     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 Company 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;

 

(k)                                  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 Company Registration
Statement, as soon as practicable, a consolidated earnings statement meeting
the requirements of Rule 158 (which need not be audited) for the twelve-

 

7

 

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 Company Registration Statement;

 

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

 

(m)                               use its best efforts to list, not later than
the effective date of such Company Registration Statement, all Registrable Securities
covered by such Company Registration Statement on the Nasdaq National Market or
any other trading market on which any Common Stock of the Company are then
admitted for trading.

 

2.4                                 Holder’s
Cooperation

 

(a)                                  Holders of Registrable Securities desiring to
sell in any Company Registration Statement will furnish to the Company such
information as the Company may reasonably require from such Holder in
connection with the Company 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
questionnaires, indemnities, and other documents required in connection with
the offering. No Holder of Registrable Securities may include any of its
Registrable Securities in any Company Registration Statement pursuant to this
Agreement unless and until such Holder furnishes to the Company in writing,
within five (5) Business Days after receipt of a written request therefor, such
information specified in Item 507 of Regulation S-K under the Securities Act or
such other information as the Company may reasonably request for use in
connection with such Company Registration Statement or Prospectus or
preliminary Prospectus included therein and in any application to the NASD.
Each Holder as to which such Company 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 viability of the
offering or the legality of the registration or the underlying offering.

 

(c)                                  The Holders holding shares included in the
registration will not (until further notice by the Company) effect sales
thereof (or deliver a prospectus to any purchaser) after receipt of telegraphic
or written notice from the Company to suspend sales to permit the Company to
correct or update a registration statement or prospectus. 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

 

8

 

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.

 

In
connection with any offering, each Holder who intends to sell Registrable
Securities in any Company 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.

 

2.5                                 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,
which consent shall not be unreasonably withheld or delayed.

 

2.6                                 Registration
Expenses.

 

(a)                                  Subject to the provisions of Section 2.6(b)
below, all expenses incident to the Company’s performance of or compliance with
this Agreement with regard to filing the Company Registration Statement
pursuant to Section 2.2 will be borne by the Company, regardless of whether a
Company 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 for up to ten (10) states; (iii)
all expenses of printing, messenger and delivery services and telephone calls;
(iv) all fees and disbursements of counsel for the Company; and (v) 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 2.6(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.

 

2.7                                 Indemnification;
Contribution.

 

 

9

 

 

(a)                                  The Company agrees to indemnify and hold
harmless (i) each Holder covered by any Company Registration Statement, (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”), to the fullest extent lawful, 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) (collectively, “Claims”), to which such indemnified Person may become
subject 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 Company 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,
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) 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
2.3(b)(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 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)

 

10

 

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 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 Company 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) (x) with respect to actions based on information
relating to such Holder furnished in writing by or on behalf of such Holder
expressly for use in any Company Registration Statement or Prospectus, (y) with
respect to the preliminary Prospectus, any matters 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) such matters 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
2.3(b)(iv), the indemnified Person or the related Holder was not permitted to
do so, and (ii) to the extent of the gross proceeds, if any, received by such
Purchaser from the sale or other disposition of his or its Registrable
Securities covered by such Company Registration Statement.  In case any action or proceeding shall be
brought against the Company or its directors or officers or any such
controlling person in respect of which indemnity may be sought against a Holder
of Registrable Securities covered by any Company Registration Statement, such
Holder shall have the rights and duties given the Company in Section 2.7
(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

 

11

 

Holder by Section 2.7. 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 2.7 is unavailable to an indemnified party under Section 2.7(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 benefits received
by the Company on the one hand and the Holder on the other hand from sale of
Registrable Securities 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 benefits referred to in clause (i) above but also
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, 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 2.7(a) and Section 2.7(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 Company
Registration Statement agree that it would not be just and equitable if
contribution pursuant to this Section 2.7(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 2.7(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.

 

The
indemnity, and contribution provisions contained in this Section 2.7 are in
addition to any liability which the indemnifying person may otherwise have to
the indemnified persons referred to above.

 

12

 

2.8                                 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.

 

2.9                                 Selection
of Underwriters. The Holders of Registrable Securities
covered by any Company Registration Statement which is not an underwritten
offering may sell such Registrable Securities in an underwritten offering if
they desire to do so.  In any such
offering, the investment banker or investment bankers and manager or managers
that will administer the offering of the Registrable Securities will be
selected by the Holders of a majority of the Registrable Securities; provided,
however, that such investment bankers and managers must be reasonably
satisfactory to the Company.

 

2.10                           Market Stand-Off. In consideration for the Company agreeing to its obligations under this
Agreement, each Holder agrees in connection with any 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 the 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.

 

2.11                           Rule 144.                        Following the IPO, 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.

 

13

 

ARTICLE III

 

MISCELLANEOUS

 

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 remain
outstanding and (ii) the close of business on the third anniversary of the IPO.

 

3.2                                 Entire
Agreement. This 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.

 

3.3                                 Successors
and Assigns.   This
Agreement shall inure to the benefit of 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; provided,
however, that this Agreement shall not inure to the benefit of or be
binding upon a successor or assign of a Holder unless and to the extent such
successor or assign acquired Registrable Securities from such Holder at a time
when such Holder could not transfer such Registrable Securities pursuant to any
Company Registration Statement or pursuant to Rule 144 under the Securities Act
as contemplated by clause (ii) of the definition of Registrable Securities.

 

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 telecopy (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 telecopy 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 telecopier 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

  	
   

  	
  to such 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.

  
	
   

  	
   

  	
   

  
	
  if to the Company:

  	
   

  	
  GFInet inc.

  
	
   

  	
   

  	
  100 Wall Street

  
	
   

  	
   

  	
  New York, New York 10005

  
	
   

  	
   

  	
  Attention: Scott Pintoff,
  Esq.

  

 

14

 

	
  with copies to:

  	
   

  	
  Greenberg Traurig, LLP

  
	
   

  	
   

  	
  Met Life Building

  
	
   

  	
   

  	
  200 Park Avenue

  
	
   

  	
   

  	
  New York, New York 10166

  
	
   

  	
   

  	
  Attn: Clifford E. Neimeth,
  Esq.

  
	
   

  	
   

  	
  Telephone Number: (212)
  801-9200

  
	
   

  	
   

  	
  Fax: (212) 801-6400 and
  (212) 805-9383

  

 

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

 

3.6                                 Counterparts. This Agreement may be executed 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.

 

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 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.

 

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.

 

3.9                                 Additional
Holders. If additional shares of Series B Preferred
Stock are issued to any person or entity, the Company may, but shall not be
obligated to, permit such person or entity to become a party to this Agreement
and succeed to all of the rights and obligations of a “Holder” under this Agreement
by obtaining an executed counterpart signature page to this Agreement,

 

15

 

and, upon such execution, such person or entity shall for all purposes
be a “Holder” or “party” to this Agreement, and the name of such person or
entity shall be included on Schedule A hereof.

 

3.10                           Amendment
and Waivers. Other than the addition of additional
Holders pursuant to Section 3.9 hereof, the provisions of this Agreement may
not be amended, modified or supplemented, and waivers or consents to or
departures from the provisions hereof may not be given unless the Company has
obtained the written consent of Holders of a majority of the then outstanding
Registrable Securities.

 

 

[The remainder of this page is intentionally left
blank.]

 

16

 

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.

 

	
   

  	
  GFInet
  inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Scott Pintoff

  	
   

  
	
   

  	
   

  	
  Name: Scott Pintoff

  
	
   

  	
   

  	
  Title: Attorney-In-Fact

  
	
   

  	
   

  
	
   

  	
   

  	
  Entré Networks Inc.

  	
   

  
	
   

  	
   

  	
  Holder

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Larry E. Fondrew

  	
   

  
	
   

  	
   

  	
  Name: Larry E.
  Fondrew

  
	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  
	
   

  	
   

  	
  Schell Investments, LLC

  	
   

  
	
   

  	
   

  	
  Holder

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Cynthia K. Mahoney

  	
   

  
	
   

  	
   

  	
  Name: Cynthia K.
  Mahoney

  
	
   

  	
   

  	
  Title: Manager

  
	
   

  	
   

  
	
   

  	
   

  	
  Veritas Venturer, LLC

  	
   

  
	
   

  	
   

  	
  Holder

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John Culbertson

  	
   

  
	
   

  	
   

  	
  Name: John
  Culbertson

  
	
   

  	
   

  	
  Title: Managing Director

  
	
   

  	
   

  
	
   

  	
   

  	
  AHP Holdings, LP

  	
   

  
	
   

  	
   

  	
  Holder

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Alec Petro

  	
   

  
	
   

  	
   

  	
  Name: Alec Petro

  
	
   

  	
   

  	
  Title: Managing Director

  
	
   

  	
   

  
	
   

  	
   

  	
  N-Two LLC

  	
   

  
	
   

  	
   

  	
  Holder

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Douglas A. Yorke, Jr.

  	
   

  
	
   

  	
   

  	
  Name: Douglas A.
  Yorke, Jr.

  
	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  
	
   

  	
   

  	
  Olympia Valley Ltd

  	
   

  
	
   

  	
   

  	
  Holder

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas C. Piersanti

  	
   

  
	
   

  	
   

  	
  Name: Thomas C.
  Piersanti

  
	
   

  	
   

  	
  Title: Partner-President

  
					

 

17

 

SCHEDULE A

 

	
  Name and Address of Holder

  	
   

  	
  No. of Subject Shares

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Entré Networks, Inc.

  	
   

  	
  380,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  A.H.P. Holdings, LP

  	
   

  	
  189,560

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  N-Two LLC

  	
   

  	
  189,560

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Olympia Valley LLP

  	
   

  	
  65,660

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Schell Investments, LLC

  	
   

  	
  65,660

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Veritas Ventures, LLC

  	
   

  	
  189,560

  	
   

  

 

 

AMENDMENT AGREEMENT

 

This Amendment Agreement (the “Amendment”),
dated as of November 30, 2001, is made by and among GFI Group Inc. (“Group”),
GFInet inc. (“Net”), the stockholders of Net listed on the signature
pages hereto (the “Stockholders”).

 

WHEREAS, Net and the Stockholders are party
to a Registration Rights Agreement, dated as of June 1, 2000 (the “Registration
Agreement”); and

 

WHEREAS, Group and Net are party to a Merger
Agreement dated as of August 8, 2001, as amended (the “Merger Agreement”)
pursuant to which Net will merge with and into a wholly-owned subsidiary of
Group (the “Merger”) with Net continuing as the surviving corporation;
and in the Merger each share of Net common stock will be converted into a share
of Class B common stock, par value $.01 per share, of Group (“Group Class B
Common Stock”) and each share of Series B preferred stock of Net will be
converted into a share of Series B Preferred Stock, par value $.01 per share,
of Group (“Group Series B Preferred Stock”); and

 

WHEREAS, the parties hereto desire to effect
certain amendments to the Registration Agreement to reflect the Merger and the
conversion of Net capital stock into shares of Group capital stock pursuant to
the Merger.

 

NOW, THEREFORE, in consideration of the
mutual premises and covenants and agreements set forth herein, the parties
hereto hereby agree as follows:

 

1.                                       The Registration Agreement is hereby amended,
effective as of the effective time of the Merger, to substitute Group for Net
as the “Company” party to the Registration Agreement and to acknowledge that
the Group Class B Common Stock issuable upon conversion of the Group Series B
Preferred Stock received in the Merger by the Stockholders will be the “Subject
Shares” subject to the Registration Agreement.

 

2.                                       Except as expressly amended and modified by
this Amendment, the Registration Agreement is hereby ratified and confirmed and
shall continue in full force and effect in accordance with its terms.

 

3.                                       This Amendment shall be governed by and
construed in accordance with the laws of the State of New York.

 

4.                                       This Amendment may be executed in any number
of counterparts, each of which shall constitute an integral part of one and the same
original agreement.

 

 

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

 

	
   

  	
  GFI GROUP INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael Gooch

  
	
   

  	
   

  	
  Name:

  	
  Michael Gooch

  
	
   

  	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  
	
   

  	
  GFInet inc.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steve Ellis

  
	
   

  	
   

  	
  Name:

  	
   Steve Ellis

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial Officer

  
						

 

2

 

	
   

  	
  STOCKHOLDERS:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  AHP Holdings LP

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Alec Petro

  
	
   

  	
   

  	
  Name:

  	
   Alec Petro

  
	
   

  	
   

  	
  Title:

  	
  G.P. AHP Holdings LP

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Entre Networks, Inc.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Larry E. Fondren

  
	
   

  	
   

  	
  Name:

  	
  Larry E. Fondren

  
	
   

  	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  N-Two LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert Crossan

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Olympia Valley LLP

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas C. Piersanti,
  Jr.

  
	
   

  	
   

  	
  Name:

  	
  Thomas
  C. Piersanti, Jr.

  
	
   

  	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  	
   

  	
  Olympia Valley LLP

  
						

 

 

3

 

 

	
   

  	
  Schell Investment, LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ C.R. Mahoney

  
	
   

  	
   

  	
  Name: 

  	
  C.R. Mahoney

  
	
   

  	
   

  	
  Title:

  	
  Manager

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Veritas Ventures LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John N. Culbertson

  
	
   

  	
   

  	
  Name:

  	
  John N. Culbertson

  
	
   

  	
   

  	
  Title:

  	
  Managing Member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Sean P. Duffy

  
	
   

  	
   

  	
  Name:  

  	
  Sean P. Duffy

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Fiona M. Duffy

  
	
   

  	
   

  	
  Name:  

  	
  Fiona M. Duffy

  

 

 

4

 

 

AMENDMENT NO. 2 TO THE
REGISTRATION RIGHTS AGREEMENT

 

This AMENDMENT NO. 2 TO THE REGISTRATION RIGHTS AGREEMENT (this “Amendment”),
is made and entered into this 3rd day of June, 2002, by and among GF1
Group Inc., a Delaware corporation (the “Company”), and the parties
listed on the signature pages hereto (collectively, the “Holders”).

 

BACKGROUND:

 

The
Company and each of the Holders are parties to a Registration Rights Agreement,
dated as of June 1, 2000, as amended by the Amendment Agreement dated as of
November 30, 2001, by and among the Company, GFInet inc. and the stockholders
listed on the signature pages thereto (collectively, the “Original Agreement”).
Capitalized terms used in this Amendment and not otherwise defined in this
Amendment shall have the meanings ascribed to them in the Original Agreement.

 

The Original Agreement, inter  alia, granted to the
Holders certain rights relating to the registration of Registrable Securities.
Pursuant to Section 2.2 of the Original Agreement, the Company granted each of
the Holders and each of the other signatories to the Original Agreement (each a
“Purchaser” and collectively, the “Purchasers”) the right to
require the Company to include all of such Purchaser’s Registrable Securities
any time such Purchaser receives a Registration Notice from the Company. The
Holders and the Company further agreed that the ability to participate in any
such registration would be limited in accordance with the terms of the Original
Agreement. In order to clarify those terms which limit such participation, the
Holders and the Company are entering into this Amendment.

 

Pursuant to Section 3.10 of the Original Agreement, the provisions of
the Original Agreement may be amended if the Company obtains the written
consent of the holders of a majority of the Registrable Securities then
outstanding. The Holders hold a majority of the Registrable Securities
outstanding as of the date of this Amendment.

 

NOW, THEREFORE, in consideration of the mutual covenants and
obligations contained herein, and intending to be legally bound, the parties,
subject to the terms and conditions set forth herein, agree as follows:

 

ARTICLE 1

AMENDMENT TO ORIGINAL AGREEMENT

 

1.1.                                                                              Amendment
to Section 2.2(b) of the Original Agreement.  Section 2.2(b) of the Original Agreement
shall be amended and restated as follows:

 

“(b)         The Company’s
obligation to include Registrable Securities in a Company Registration
Statement pursuant to Section 2.2(a) shall be subject to the following
limitations:

 

(i)                                     The Company shall not be required to include
any Registrable Securities in the Company Registration Statement filed in
connection with its 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.

 

(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:

 

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

 

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

 

(II)                                second, for each holder of securities issued
or issuable upon conversion of the Company’s Series C Preferred Stock, $0.01
par value per share (each a “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 number of the securities of the Company that such Series C Holder
proposes to include in such registration divided by (ii) the total number of
securities proposed to be sold in such offering by all Series C Holders; and

 

(III)                            third, for each remaining holder of the
Company’s securities who holds contractual piggyback registration rights other
than the holders described above in clauses (I) and (II) (including the Holders
of Registrable Securities hereunder), if any, the fraction of such holder’s
securities proposed to be registered which is obtained by dividing (i) the
number of the securities of the Company that such holder proposes to include in
such registration by (ii) the total number of securities proposed to be sold in
such offering by such holders; and

 

(IV)                            fourth, for each remaining holder of the
Company’s securities other than the holders described above in clauses (I),
(II) and (III), 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.

 

(B)                                In the event a Series C Holder initiated such
registration:

 

2

 

(I) first, the securities
proposed by the initiating Series C Holders;

 

(II)  second, for each remaining 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 number of the securities of the
Company that such Series C Holder proposes to include in such registration
divided by (ii) the total number of securities proposed to be sold in such
offering by all remaining Series C Holders; and

 

(III)
third, for the Company and each remaining holder of the Company’s securities,
other than the holders described above in clauses (I) and (II), if any, who are
permitted by the Company to so participate, the fraction of such holder’s
securities proposed to be registered which is obtained by dividing (i) the
number of the securities of the Company that such holder proposes to include in
such registration by (ii) the total number of securities proposed to be sold in
such offering by such holders.

 

(C)                                In the event that a shareholder other than a
Series C Holder initiated such registration pursuant to demand registration
rights granted under another agreement:

 

(I) first,

 

(l)                                     in the event there are no Series C Holders
electing to participate in the demand registration, then for each holder
initiating the demand registration and each other 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 (a) the securities able to
be registered as determined by the managing underwriter, by (b) the fraction of
(i) the aggregate number of securities of the Company that such party proposes
to include in such registration divided by (ii) 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;

 

(2)                                  in the event there are Series C Holders
electing to participate in the demand registration and the holders initiating
the demand registration initiated such registration pursuant to their 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), then

 

3

 

(i)                                     for each holder initiating the demand
registration and each other 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 each other holder electing to
participate in such demand registration who was otherwise permitted to initiate
(alone or together with other shareholders) such demand registration; and

 

(ii)                                  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;

 

(3)                                  in the event there are Series C Holders
electing to participate in the demand registration and any of the holders
initiating the demand registration has (alone or together with other
shareholders) additional contractual demand registration rights (or was
permitted (alone or together with other shareholders) to exercise a previously

 

4

 

exercised contractual demand
registration right), then 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, such number of
securities as is determined by multiplying (a) the securities able to be
registered as determined by the managing underwriter, by (b) the fraction of
(i) the aggregate number of securities of the Company that such party proposes
to include in such registration divided by (ii) 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 and each of the Series C Holders;

 

(II)                                second, for each holder of the Company’s
securities who holds contractual piggyback registration rights, other than the
holders described above in clause (I), 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

 

(III)                            third, for the Company and each remaining
holder of the Company’s securities, other than the holders described above in
clauses (I) and (II), 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.”

 

ARTICLE 2

General Provisions

 

2.1.                                                                              Confirmation of Original Agreement. 
Except as expressly amended and modified by this Amendment, the Original
Agreement is hereby ratified and confirmed and shall continue in full force and
effect in accordance with its terms.

 

2.2.                                                                              Interpretation.  The
headings contained in this Amendment are for reference purposes only and shall
not affect in any way the meaning or interpretation of this Amendment.

 

5

 

2.3.                                                                              Counterparts.  
This Amendment may be executed by facsimile and in one or more
counterparts, each of which shall be an original, but all of which together
shall constitute but one and the same instrument.

 

2.4.                                                                              Entire Agreement; No Third-Party
Beneficiaries.   This Amendment and the Agreement,
collectively constitute the entire agreement and supersedes all prior
agreements and understandings, both written and oral, among the parties with
respect to the subject matter of this Amendment and are not intended to confer
upon any person, other than the Purchasers and the parties hereto, any rights
or remedies hereunder.

 

2.5.                                                                              Governing Law.  This
Amendment shall be governed by, and construed in accordance with, the laws of
the State of New York.

 

[The rest of this page intentionally
blank.  Signature pages follow.]

 

6

 

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

 

	
   

  	
  COMPANY:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  GFI GROUP INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ S. McMillan

  
	
   

  	
   

  	
  Name:

  	
  S. McMillan

  
	
   

  	
   

  	
  Title:

  	
  C.O.O.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  HOLDERS:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  AHP Holdings LP

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Alec Petro

  
	
   

  	
   

  	
  Name:

  	
  Alec Petro

  
	
   

  	
   

  	
  Title:

  	
  Managing Partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Entre Networks, Inc.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Larry E. Fondren  4/8/02

  
	
   

  	
   

  	
  Name:

  	
  Larry E. Fondren

  
	
   

  	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  N-Two LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert Crossan

  
	
   

  	
   

  	
  Name:

  	
  Robert Crossan

  
	
   

  	
   

  	
  Title:

  	
  CFO

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Olympia Valley LLP

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas C. Piersanti, Jr.

  
	
   

  	
   

  	
  Name:

  	
  Thomas C. Piersanti, Jr.

  
	
   

  	
   

  	
  Title:

  	
  President

  
						

 

7

 

	
   

  	
  Schell Investment, LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Cynthia R. Mahoney

  
	
   

  	
   

  	
  Name:

  	
  Cynthia R. Mahoney

  
	
   

  	
   

  	
  Title:

  	
  Managing Member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Veritas Ventures LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John N. Culbertson

  
	
   

  	
   

  	
  Name:

  	
  John N. Culbertson

  
	
   

  	
   

  	
  Title:

  	
  Managing Member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Sean P. Duffy

  
	
   

  	
   

  	
   

  	
  Sean P. Duffy

  
						

 

8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00071-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00071-of-00352.parquet"}]]