Document:

ex102.htm

     

     

                                                                                                                                                                                                                                                                                           EXHIBIT
10.2

    

    

    

    THIS
WARRANT, AND THE SHARES OF COMMON STOCK OF THE COMPANY ISSUABLE UPON EXERCISE OF
THIS WARRANT, HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “ACT”), OR THE APPLICABLE SECURITIES LAWS OF ANY STATE, AND MAY NOT
BE PLEDGED, SOLD, ASSIGNED OR OTHERWISE TRANSFERRED UNLESS REGISTERED UNDER THE
ACT AND UNDER APPLICABLE STATE SECURITIES LAWS, OR UNLESS AN OPINION OF COUNSEL,
REASONABLY SATISFACTORY TO THE COMPANY, IS OBTAINED TO THE EFFECT THAT SUCH
PLEDGE, SALE, ASSIGNMENT OR TRANSFER IS EXEMPT FROM THE REGISTRATION
REQUIREMENTS OF THE ACT AND SUCH STATE SECURITIES LAWS.

    

    

    
      	
              Void
      After June 27, 2012

            	
              Right
      to Purchase 1,000,000 (subject to the qualifications and adjustments set
      forth herein) shares of  Common Stock of Broadpoint Securities
      Group, Inc.

            

    

    

    BROADPOINT
SECURITIES GROUP, INC.

    

    Common
Stock Purchase Warrant

    

    June
27, 2008

    

    Broadpoint Securities Group, Inc., a
New York corporation (the “Company”), hereby
certifies that for good and valuable consideration, MAST CREDIT OPPORTUNITIES I
MASTER FUND LIMITED and its successors and assigns (the “Holder”), is entitled
to subscribe for and purchase from the Company an aggregate of One Million
(1,000,000) validly issued, fully paid and nonassessable shares of Common Stock,
par value $0.01 per share, of the Company (“Common Stock”) at a
purchase price per share equal to $3.00 (the “Exercise Price”), all
subject to the terms, conditions and adjustments as hereinafter
provided.  The Exercise Price shall be subject to adjustment from time
to time pursuant to the provisions of Section 8 hereof.

     

    This Warrant is issued pursuant to, and
in accordance with, the Preferred Stock Purchase Agreement dated as of the date
hereof by and between the Company and Holder (the “Purchase Agreement”)
and is subject to the terms thereof.

    

    Section
1.               Definitions.  Unless
otherwise defined herein, capitalized terms shall have the meaning given to them
in the Purchase Agreement.  As used herein, the following terms shall
have the following meanings, unless the context otherwise requires:

    

    (a)           “Current Market Price”
means, as of the date of determination, (a) the average of the daily Fair Market
Value under clause (i) or (ii) of the definition thereof of the Common Stock
during the immediately preceding thirty (30) trading days ending on such date,
and (b) if the Common Stock is not then listed or admitted to trading on any
national securities exchange or quoted in the over-the-counter market, then the
Fair Market Value under clause (iii) of the definition thereof on such
date.

    

    (b)           “Fair Market Value”
shall mean, as of the date of determination: (i) if the Common Stock is listed
on a national securities exchange or admitted to unlisted trading privileges on
such exchange, the Fair Market Value shall be the last reported sale price of
the Common Stock on such exchange or market system on the last Business Day
prior to the date of exercise of this Warrant or, if no such sale is made on
such day, the average closing bid and asked price for such day on such exchange
or market system; (ii) if the Common Stock is not listed or admitted to unlisted
trading privileges, the Fair Market Value shall be the mean of the last reported
bid and asked prices reported by Pink Sheets or other similar over the counter
quotation service, on the last Business Day prior to the date of the exercise of
this Warrant; or (iii) if the Common Stock is not so listed or admitted to
unlisted trading privileges and bid and asked prices are not so reported, the
Fair Market Value shall be an amount determined mutually by (x) a majority of
the members of the Board of Directors of the Company, and (y) the
Holder.  If the Board of Directors and the Holder shall fail to agree
within five (5) Business Days, the Fair Market Value shall be an amount
determined, at the Company’s expense, by an independent nationally recognized
investment banking firm chosen by the Board of Directors and reasonably
acceptable to the Holder.  Any determination of the Fair Market Value
by an appraiser shall be based on a valuation of the Company as an entirety
without regard to any discount for minority interests or disparate voting rights
among classes of Capital Stock.

    

    (c)           “Stock Equivalent”
means any security or obligation which is by its terms, directly or indirectly,
convertible into or exchangeable or exercisable for shares of Common Stock or
other Capital Stock of the Company, and any option, warrant or other
subscription or purchase right with respect to Common Stock or such other
Capital Stock.

    

    (d)           “Warrant Expiration
Date” shall mean 5:00 p.m., Eastern Time, on June 27, 2012; provided,
that, if such date is not a Business Day, the next Business Day immediately
thereafter.

    

    Section
2.                      Transfers.  This
Warrant and the shares of Common Stock issuable upon exercise of this Warrant
may not be transferred or assigned in whole or in part without compliance with
applicable federal and state securities laws by the transferor and the
transferee; provided, however, that this Warrant may not be sold, assigned,
transferred or otherwise disposed of unless each such sale, assignment, transfer
or disposition is of a minimum of 300,000 shares of the Common Stock issuable
hereunder (or, if the aggregate number of shares issuable hereunder is less than
300,000 shares of Common Stock, then no less than 100% of the remaining shares
of Common Stock issuable hereunder shall be included in such sale, assignment,
transfer or disposition).  The Company shall not require Holder to
provide an opinion of counsel if the transfer is to an Affiliate of Holder,
provided that any such transferee is an “accredited investor” as defined in
Regulation D promulgated under the Securities Act.

    

    Section
3.                      Exercise of
Warrant.

    

    3.1           Manner of
Exercise.  Subject to the terms and conditions set forth
herein, this Warrant may be exercised, in whole or in part (but not as to a
fractional share of Common Stock), by the Holder at any time or from time to
time, on any Business Day on or prior to the Warrant Expiration Date by (i) the
surrender of this Warrant and a duly executed exercise form in the form attached
as Exhibit A hereto (an “Exercise Form”) to
the Company at its office at One Penn Plaza, 42nd Floor

    New York,
New York 10119, or at such other office as the Company may designate by notice
in writing, and (ii) the delivery of payment to the Company by cash, check made
payable to the order of the Company, wire transfer of funds to a bank account
designated by the Company or any other means approved by the Company, an amount
equal to the aggregate Exercise Price for all shares of Common Stock as to which
this Warrant is exercised.  In lieu of payment of the aggregate
Exercise Price, the Holder holder may from time to time convert this Warrant, in
whole or in part, into a number of shares of Common Stock determined by using
the following net issuance formula:

    

    X=((P)(A-B))/A

    

    where

    

              

    
      	 	X= 	the
      number of shares of Common Stock to be issued to the holder for theportion
      of this Warrant being exercised; 
	
               
      

            	
              P=

            	
              the
      number of shares of common stock purchasable under this Warrant or, if
      only a portion of the Warrant is being exercised, the portion of the
      Warrant being exercised, at the date of calculation;

            
	 	A=   	the
      Fair Market Value of one share of Common Stock as of the exercisedate;
      and 
	 	B
      =  	the
      Exercise Price as in effect on the exercise
  date. 

    

                    

    3.2           Issuance of Common
Stock.  Upon receipt of the documents and payments described in
Section 3.1 hereof, the Company shall, within five (5) Business Days, execute or
cause to be executed, and deliver to the Holder a certificate or certificates
representing the aggregate number of full shares of Common Stock issuable upon
such exercise, together with an amount in cash in lieu of any fraction of a
share, as hereinafter provided.  The stock certificate or certificates
so delivered shall be in the denomination specified in the Exercise Form and
shall be registered in the name of the holder hereof.  This Warrant
shall be deemed to have been exercised and a certificate or certificates for
shares of Common Stock shall be deemed to have been issued, and the Holder or
its permitted designee (as specified in the Exercise Form) shall be deemed to
have become a holder of such shares for all purposes as of the close of business
on the date on which this Warrant and the documents and payments described in
Section 3.1 hereof, are received by the Company as aforesaid.  Unless
this Warrant has expired or all of the purchase rights represented hereby have
been exercised, the Company shall, at the time of delivery of said certificate
or certificates, deliver to the Holder or its designee (as specified in the
Exercise Form) a new Warrant evidencing the rights of such holder to purchase
the unpurchased shares of Common Stock called for by this Warrant, which new
Warrant shall in all other respects be identical with this Warrant.

    

    Section
4.                      Compliance with the
Securities Act/Removal of Legend.

    

    (a)           Subject
to Section 4(b), the Company may cause the legend set forth on the first page of
this Warrant to be set forth on each Warrant or similar legend on any security
issued or issuable upon exercise of this Warrant, unless counsel for the Company
is of the opinion as to any such security that such legend is
unnecessary.

    

    (b)           The
Holder may require the Company to issue a Warrant or a certificate for shares of
Common Stock, in each case without a legend, if either (i) such Warrant or such
shares of Common Stock, as the case may be, have been registered for resale
under the Securities Act, or (ii) such Warrant or shares of Common Stock have
been sold pursuant to Rule 144 (or any successor provision then in effect) under
the Securities Act.

    

    Section
5.                      Payment of
Taxes.  The Company will pay any documentary stamp taxes
attributable to the initial issuance of the shares of Common Stock issuable upon
the exercise of the Warrant; provided, however, that the
Company shall not be required to pay any tax or taxes which may be payable in
respect of any transfer involved in the issuance or delivery of any certificates
for shares of Common Stock in a name other than that of the registered holder of
this Warrant in respect of which such shares are issued, and in such case, the
Company shall not be required to issue or deliver any certificate for shares of
Common Stock or any Warrant until the person requesting the same has paid to the
Company the amount of such tax or has established to the Company’s reasonable
satisfaction that such tax has been paid.  The holder shall be
responsible for income taxes due under federal, state or other law, if any such
tax is due.

    

    Section
6.                      Mutilated or Missing
Warrants.  In case this Warrant shall be mutilated, lost,
stolen, or destroyed, the Company shall issue in exchange and substitution of
and upon cancellation of the mutilated Warrant, or in lieu of and substitution
for the Warrant lost, stolen or destroyed, a new Warrant of like tenor and for
the purchase of a like number of shares of Common Stock, but only upon receipt
of evidence reasonably satisfactory to the Company of such loss, theft or
destruction of the Warrant, and with respect to a lost, stolen or destroyed
Warrant, indemnity reasonably satisfactory to the Company with respect
thereto.

    

    Section
7.                      Reservation of Common
Stock.  The Company hereby represents and warrants that there
have been reserved, and the Company shall at all applicable times keep reserved
until issued (if necessary) as contemplated by this Section 7, out of the
authorized and unissued shares of Common Stock, 100% of the number of shares
issuable upon exercise of the rights of purchase represented by this
Warrant.  The Company agrees that all shares of Common Stock issued
upon due exercise of the Warrant shall be, at the time of delivery of the
certificates for such shares of Common Stock, duly authorized, validly issued,
fully paid and non-assessable shares of Common Stock of the
Company.

    

    Section
8.                      Adjustments.  Subject
and pursuant to the provisions of this Section 8, the Exercise Price and number
of shares of Common Stock subject to this Warrant shall be subject to adjustment
from time to time as set forth hereinafter.

    

    8.1           Dividend, Subdivision or
Combination of Common Stock.  If the Company at any time or
from time to time, after the issuance of this Warrant but prior to the exercise
thereof subdivides (by any stock split, stock dividend, recapitalization or
otherwise) its outstanding shares of Common Stock into a greater number of
shares, and if the Company at any time combines (by reverse stock split,
recapitalization or otherwise) its outstanding shares of Common Stock into a
smaller number of shares, then, and in each such case, (i) the aggregate number
of shares of Common Stock for which this Warrant is exercisable (the “Warrant Share
Number”) immediately prior to such event shall be adjusted (and any other
appropriate actions shall be taken by the Company) so that the Holder shall be
entitled to receive upon exercise of this Warrant the number of shares of Common
Stock or other securities of the Company that it would have owned or would have
been entitled to receive upon or by reason of any of the events described above,
had this Warrant been exercised immediately prior to the occurrence of such
event and (ii) the Exercise Price payable upon the exercise of this Warrant
shall be adjusted by multiplying such Exercise Price immediately prior to such
adjustment by a fraction, the numerator of which shall be the number of shares
of Common Stock issuable upon the exercise of this Warrant immediately prior to
such adjustment, and the denominator of which shall be the number of shares of
Common Stock issuable immediately thereafter.  An adjustment made
pursuant to this Section 8.1 shall become effective retroactively (x) in the
case of any such dividend or distribution, to a date immediately following the
close of business on the record date for the determination of holders of shares
of Common Stock entitled to receive such dividend or distribution or (y) in the
case of any such subdivision, combination or reclassification, to the close of
business on the day upon which such corporate action becomes
effective.

    

    8.2           Issuance of Common Stock or
Stock Equivalents Below Exercise Price and/or Current Market
Price.

    

    (a)           If
the Company shall at any time or from time to time, after the issuance of this
Warrant but prior to the exercise hereof, issue or sell (such issuance or sale,
a “New
Issuance”) any shares of Common Stock or Stock Equivalents at a price per
share of Common Stock that is less than the Exercise Price then in effect as of
the record date or Issue Date (as defined below), as the case may be (the “Relevant Date”)
(treating the price per share of Common Stock, in the case of the issuance of
any Stock Equivalent, as equal to (x) the sum of the price for such Stock
Equivalent plus any additional consideration payable (without regard to any anti
dilution adjustments) upon the conversion, exchange or exercise of such Stock
Equivalent divided by (y) the number of shares of Common Stock initially
underlying such Stock Equivalent), other than issuances or sales for which an
adjustment is made pursuant to another subsection of this Section 8.2 and other
than Excepted Issuances (as hereinafter defined), then, and in each such case,
(A) the Exercise Price then in effect shall be adjusted by multiplying the
Exercise Price in effect on the Relevant Date by a fraction (I) the numerator of
which shall be the sum of the number of shares of Common Stock outstanding on
the Relevant Date plus the number of shares of Common Stock which the aggregate
consideration received by the Company for the total number of such additional
shares of Common Stock so issued would purchase at the Exercise Price in effect
on the Relevant Date (or, in the case of Stock Equivalents, the number of shares
of Common Stock which the aggregate consideration received by the Company upon
the issuance of such Stock Equivalents and receivable by the Company upon the
conversion, exchange or exercise of such Stock Equivalents would purchase at the
Exercise Price on the Relevant Date) and (II) the denominator of which shall be
the sum of the number of shares of Common Stock outstanding on the Relevant Date
plus the number of additional shares of Common Stock issued or to be issued (or,
in the case of Stock Equivalents, the maximum number of shares of Common Stock
into which such Stock Equivalents initially may convert, exchange or be
exercised), calculated to the nearest cent, and (B) the Warrant Share Number
shall be increased to equal the product of (I) the aggregate number of shares of
Common Stock for which this Warrant is exercisable immediately prior to the New
Issuance multiplied by (II) a fraction, the numerator of which shall be the
Exercise Price in effect on the Relevant Date and the denominator of which shall
be the Exercise Price in effect immediately after such adjustment.

    

    (b)           If
the Company shall at any time or from time to time, after the issuance of this
Warrant but prior to the exercise hereof, issue or sell any shares of Common
Stock or Stock Equivalents at a price per share of Common Stock that is less
than the Current Market Price then in effect as of the Relevant Date (treating
the price per share of Common Stock, in the case of the issuance of any Stock
Equivalent, as equal to (x) the sum of the price for such Stock Equivalent plus
any additional consideration payable (without regard to any anti dilution
adjustments) upon the conversion, exchange or exercise of such Stock Equivalent
divided by (y) the number of shares of Common Stock initially underlying such
Stock Equivalent), other than issuances or sales for which an adjustment is made
pursuant to another subsection of this Section 8.2 and other than Excepted
Issuances (as hereinafter defined), then, and in each such case, (A) the
Exercise Price then in effect shall be adjusted by multiplying the Exercise
Price in effect on the Relevant Date by a fraction (I) the numerator of which
shall be the sum of the number of shares of Common Stock outstanding on the
Relevant Date plus the number of shares of Common Stock which the aggregate
consideration received by the Company for the total number of such additional
shares of Common Stock so issued would purchase at the Current Market Price in
effect on the Relevant Date (or, in the case of Stock Equivalents, the number of
shares of Common Stock which the aggregate consideration received by the Company
upon the issuance of such Stock Equivalents and receivable by the Company upon
the conversion, exchange or exercise of such Stock Equivalents would purchase at
the Current Market Price on the Relevant Date) and (II) the denominator of which
shall be the sum of the number of shares of Common Stock outstanding on the
Relevant Date plus the number of additional shares of Common Stock issued or to
be issued (or, in the case of Stock Equivalents, the maximum number of shares of
Common Stock into which such Stock Equivalents initially may convert, exchange
or be exercised), calculated to the nearest cent, and (B) the Warrant Share
Number shall be increased to equal the product of (I) the aggregate number of
shares of Common Stock for which this Warrant is exercisable immediately prior
to the New Issuance multiplied by (II) a fraction, the numerator of which shall
be the Exercise Price in effect on the Relevant Date and the denominator of
which shall be the Exercise Price in effect immediately after such
adjustment.

    

    (c)           If
the Company shall at any time or from time to time, after the issuance of this
Warrant but prior to the exercise hereof, issue or sell any shares of Common
Stock or Stock Equivalents at a price per share of Common Stock that is less
than both the Exercise Price and Current Market Price then in effect as of the
Relevant Date, other than issuances or sales for which an adjustment is made
pursuant to another subsection of this Section 8.2 and other than Excepted
Issuances, then, and in each such case, (A) the Exercise Price then in effect
shall be adjusted in accordance with (i) Section 8.2(a) if the Current Market
Price in effect as of the Relevant Date is less than the Exercise Price in
effect as of the Relevant date, or (ii) Section 8.2(b) if the Exercise Price in
effect as of the Relevant Date is less than the Current Market Price in effect
as of the Relevant Date and (B) the Warrant Share Number shall be increased to
equal the product of (I) the aggregate number of shares of Common Stock for
which this Warrant is exercisable immediately prior to the New Issuance
multiplied by (II) a fraction, the numerator of which shall be the Exercise
Price in effect on the Relevant Date and the denominator of which shall be the
Exercise Price in effect immediately after such adjustment.

    

    

    (d)           Such
adjustment shall be made whenever such shares of Common Stock or Stock
Equivalents are issued, and shall become effective retroactively (x) in the case
of an issuance to the stockholders of the Company, as such, to a date
immediately following the close of business on the record date for the
determination of shareholders entitled to receive such shares of Common Stock or
Stock Equivalents and (y) in all other cases, on the date (the “Issue Date”) of such
issuance; provided, however, that the determination as to whether an adjustment
is required to be made pursuant to this Section 8.2(d) shall be made only upon
the issuance of such shares of Common Stock or Stock Equivalents, and not as a
result of the issuance of any security into which the Stock Equivalents convert,
exchange or may be exercised.  Subject to Section 8.2(f), no further
adjustments to the Exercise Price shall be made upon the issuance of any such
security into which Stock Equivalents convert, exchange, or may be
exercised.

    

    

    (e)           In
case at any time any shares of Common Stock or Stock Equivalents or any rights
or options to purchase any shares of Common Stock or Stock Equivalents shall be
issued or sold for cash, the consideration received therefor shall be deemed to
be the amount received by the Company therefor, without deduction therefrom of
any expenses incurred or any underwriting commissions or concessions or
discounts paid or allowed by the Company in connection therewith.  In
case any shares of Common Stock or Stock Equivalents or any rights or options to
purchase any Common Stock or Stock Equivalents shall be issued or sold for a
consideration other than cash, the amount of the consideration other than cash
received by the Company shall be deemed to be the fair market value of such
consideration, without deduction therefrom of any expenses incurred or any
underwriting commissions or concessions or discounts paid or allowed by the
Company in connection therewith, as determined mutually by (x) a majority of the
members of the Board of Directors of the Company and (y) the
Holder.  If the Board of Directors and the Holder shall fail to agree
within five (5) Business Days, the fair market value shall be an amount
determined, at the Company’s expense, by an independent nationally recognized
investment banking firm chosen by the Board of Directors and reasonably
acceptable to the Holder, who shall make such determination as soon as
practicable and whose determination shall be binding.  The cost of any
such investment banking firm shall be borne fifty percent (50%) by the Company
and fifty percent (50%) by the Holder.

    

    (f)           If
any Stock Equivalents (or any portions thereof) which shall have given rise to
an adjustment pursuant to this Section 8.2 shall have expired or terminated
without the exercise thereof and/or if by reason of the terms of such Stock
Equivalents there shall have been any increase or decrease, with the passage of
time or otherwise, in the price payable upon the exercise or conversion thereof
or, increase or decrease in the number of shares of Common Stock issuable upon
the exercise or conversion thereof, then the Exercise Price hereunder shall be
readjusted (but to no greater extent than originally adjusted) in order to (x)
eliminate from the computation any additional shares of Common Stock
corresponding to such Stock Equivalents as shall have expired or terminated, (y)
treat the additional shares of Common Stock, if any, actually issued or issuable
pursuant to the previous exercise of such Stock Equivalents as having been
issued for the consideration actually received and receivable therefor and (z)
treat any of such Stock Equivalents which remain outstanding as being subject to
exercise or conversion on the basis of such exercise or conversion price as
shall be in effect at the time.  No readjustment pursuant to this
Section 8.2(f) shall have the effect of increasing the Exercise Price to an
amount which exceeds the lower of (a) the Exercise Price on the original
adjustment date, or (b) the Exercise Price that would have resulted from any
issuance of Common Stock or Stock Equivalents between the original adjustment
date and such readjustment date.

    

    (g)           For
purposes of this Warrant, the term “Excepted Issuances”
shall mean issuances by the Company of: (A) securities offered to the public
pursuant to a registration statement filed under the Securities Act; (B) all
shares of Common Stock (or options, warrants or other rights to purchase such
shares of Common Stock) issued or to be issued to officers, employees or
directors of, or consultants to, the Company pursuant to a stock purchase or
option plan or other employee stock bonus or purchase arrangement adopted by the
Company and approved by the affirmative approval of a majority of the Board of
Directors or any duly authorized committee thereof (collectively, the “Plans”); provided, however, that all
shares of Common Stock (or options, warrants or other rights to purchase such
shares of Common Stock) issued pursuant to the Plans are either exempt from, or
issued in compliance with the requirements of Section 409A of the U.S. Internal
Revenue Code of 1986, as amended, and the guidance thereunder; (C) securities
issued hereunder or upon the exercise of or conversion of any securities issued
hereunder, convertible securities, options or warrants issued and outstanding on
the date of this Warrant, provided that such securities have not been amended
since the date of this Warrant to increase the number of such securities or to
decrease the exercise or conversion price of any such securities; (D) securities
issued in connection with the acquisition of (i) another company by the Company
by merger or by purchase of a majority of the equity interests of such other
company or (ii) specified assets of another company, provided in each case that
any such transaction is approved by a majority of the Directors; or (E) shares
of Series B Redeemable Preferred Stock issued pursuant to the Purchase
Agreement.

    

    8.3           Certain
Distributions.  In case the Company shall at any time or from
time to time, after the issuance of this Warrant but prior to the exercise
hereof, distribute to all holders of shares of Common Stock (including any such
distribution made in connection with a merger or consolidation in which the
Company is the resulting or surviving entity and shares of Common Stock are not
changed or exchanged) cash, evidences of indebtedness of the Company or another
issuer, securities of the Company or another issuer or other assets (excluding
dividends or distributions payable in shares of Common Stock for which
adjustment is made under Section 8.1) or rights or warrants to subscribe for or
purchase any of the foregoing, then, and in each such case, (i) the Exercise
Price then in effect shall be adjusted (and any other appropriate actions shall
be taken by the Company) by being multiplied by the Exercise Price in effect
prior to the date of distribution by a fraction (x) the numerator of which shall
be the Current Market Price of Common Stock immediately prior to the date of
distribution less the then fair market value (as determined by the Board of
Directors in the exercise of their fiduciary duties) of the portion of the cash,
evidences of indebtedness, securities or other assets so distributed or of such
rights or warrants applicable to one share of Common Stock and (y) the
denominator of which shall be the Current Market Price of the Common Stock
immediately prior to the date of distribution (but such fraction shall not be
greater than one) and (ii) the Warrant Share Number shall be increased by being
multiplied by a fraction (x) the numerator of which shall be the Current Market
Price of one share of Common Stock immediately prior to the record date for the
distribution of such cash, evidences of indebtedness, securities, other assets
or rights or warrants and (y) the denominator of which shall be the Current
Market Price of one share of Common Stock immediately prior to such record date
less the fair market value (as determined by the Board of Directors in the
exercise of their fiduciary duties) of the portion of such cash, evidences of
indebtedness, securities, other assets or rights or warrants so
distributed.  Such adjustment shall be made whenever any such
distribution is made and shall become effective retroactively to a date
immediately following the close of business on the record date for the
determination of stockholders entitled to receive such
distribution.

    

    8.4           Consolidation, Merger,
etc.  If any (i) capital reorganization, (ii) reclassification,
(iii) consolidation, merger, tender offer or other business combination of the
Company with another entity that involves a transfer of more than fifty percent
(50%) of the voting power of the Company, (iv) the sale of all or substantially
all of the Company’s assets to another entity, or (v) voluntary sale,
conveyance, exchange or transfer of the voting Capital Stock of the Company that
involves the sale, conveyance, exchange or transfer of more than fifty percent
(50%) of the voting power of the Company (each, an “Extraordinary Event”)
shall be effected, then, prior to the consummation of such Extraordinary Event,
the Company shall make appropriate provision, including providing written notice
of the Extraordinary Event to the Holder at least ten (10) Business Days prior
to effecting such Extraordinary Event, to ensure that the Holder shall
thereafter have the right to purchase and receive, upon exercise hereof and the
payment of the Exercise Price, in lieu of the shares of Common Stock of the
Company immediately theretofore purchasable and receivable upon the exercise of
this Warrant, such shares of stock, securities or property (including cash) as
may be issued or payable with respect to or in exchange for a number of shares
of Common Stock of the Company immediately theretofore purchasable and
receivable upon the exercise of this Warrant had such Extraordinary Event not
taken place, and in any such case appropriate provision shall be made with
respect to the rights and interests of the Holder to the end that the provisions
hereof (including, without limitation, provisions for adjustments of the
Exercise Price and of the number of shares purchasable upon the exercise of this
Warrant) shall thereafter be applicable, as nearly as may be, in relation to any
shares of stock, securities or property thereafter deliverable upon the exercise
hereof.  Each Holder agrees to keep all information it receives
regarding the Extraordinary Event confidential until such time as the Company
has disclosed such information publicly. The foregoing provisions shall
similarly apply to successive Extraordinary Events.

    

    8.5           Other
Changes.  In case the Company at any time or from time to time,
after the issuance of this Warrant but prior to the exercise hereof, shall take
any action affecting its Common Stock similar to or having an effect similar to
any of the actions described in any of Sections 8.1, 8.2, 8.3 or 8.4 (but not
including any action described in any such Section) and it would be equitable in
the circumstances to adjust the Exercise Price and Warrant Share Number as a
result of such action, then, and in each such case, the Exercise Price and
Warrant Share Number shall be adjusted in such manner and at such time as the
Board of Directors in good faith determines would be equitable in the
circumstances (such determination to be evidenced in a resolution, a certified
copy of which shall be mailed to the Holder).

    

    8.6           No
Impairment.  The Company shall not, by amendment of its
Certificate of Incorporation or through a reorganization, transfer of assets,
consolidation, merger, dissolution, issue, or sale of securities or any other
voluntary action, avoid or seek to avoid the observance or performance of any of
the terms to be observed or performed under this Warrant by the Company, but
shall at all times in good faith assist in carrying out of all the provisions of
this Warrant and in taking all such action as may be necessary or appropriate to
protect Holder's rights against impairment.

    

    8.7           Fractional
Shares.  No fractional Shares shall be issuable upon exercise
of the Warrant and the number of shares of Common Stock to be issued upon
exercise of the Warrant shall be rounded down to the nearest whole share of
Common Stock.  If a fractional share interest arises upon any exercise
of the Warrant, the Company shall eliminate such fractional share interest by
paying Holder the amount computed by multiplying the fractional interest by the
Fair Market Value of a full share of Common Stock as of the exercise date over
the Exercise Price for such fractional share.

    

    8.8           Certificate as to
Adjustments.  Upon each adjustment of the Exercise Price,
and/or number of shares of Common Stock, the Company shall promptly notify
Holder in writing, and, at the Company’s expense, promptly compute such
adjustment, and furnish Holder with a certificate of its Chief Financial Officer
setting forth such adjustment and the facts upon which such adjustment is based.
The Company shall, upon written request, furnish Holder a certificate setting
forth the Exercise Price and number of shares of Common Stock in effect upon the
date thereof and the series of adjustments leading to such Exercise Price and
number of shares of Common Stock.

    

    Section
9.                      Notices.  Unless
otherwise provided, any notice required or permitted under this Warrant shall be
given in writing and shall be deemed effectively given as hereinafter described
(i) if given by personal delivery, then such notice shall be deemed given upon
such delivery, (ii) if given by telex or facsimile, then such notice shall be
deemed given upon receipt of confirmation of complete transmittal, (iii) if
given by mail, then such notice shall be deemed given upon the earlier of (A)
receipt of such notice by the recipient or (B) five days after such notice is
deposited in first class mail, postage prepaid, and (iv) if given by an
internationally recognized overnight air courier, then such notice shall be
deemed given one day after delivery to such carrier.  All notices to
Holder shall be addressed as follows until the Company receives notice of a
change of address in connection with a transfer or otherwise:

    

    If to Mast before September 15,
2008, at the following address:

     

    MAST
Credit Opportunities I Master Fund Limited

    c/o MAST
Capital Management, LLC

    535
Boylston Street, Suite 401

    Boston,
Massachusetts 02116

    Attention:
John S. Ehlinger

    Fax:
(617) 247-7985

    

    If to Mast after September 15,
2008, at the following address:

     

    MAST
Credit Opportunities I Master Fund Limited

    c/o MAST
Capital Management, LLC

    200
Clarendon Street, 51st
Floor

    Boston,
Massachusetts 02116

    Attention:
John S. Ehlinger

    

    

    with a copy by fax or messenger or
courier to:

     

    Foley Hoag LLP

    Bay Colony Corporate
Center

    1000 Winter Street, Suite
4000

    Waltham, Massachusetts
02451

    Attention: David A. Broadwin,
Esq.

    Fax: (617) 832-7000

    

    

    Notice to
the Company shall be addressed as follows until Holder receives notice of a
change in address:

     

    

    Broadpoint Securities Group,
Inc.

            One Penn
Plaza, 42nd
Floor

    New York, New York 10119

    Fax: (212) 273-7100

    Attention:  General
Counsel

     

    with a copy by fax or messenger or
courier to:

     

    Cahill/Wink LLP

    5 Penn Plaza, 23rd floor

    New York, NY 10001

    Fax: (646) 378-2025

    Attention:  Stephen Wink,
Esq.

    

    

    Section
10.                                Registration
Rights.  The initial holder of this Warrant is entitled to the
benefit of certain registration rights with respect to the shares of Common
Stock issuable upon the exercise of this Warrant as provided in the Registration
Rights Agreement dated as of the date hereof, by and between the Holder and the
Company, and any subsequent holder hereof shall be entitled to such rights to
the extent provided in the Registration Rights Agreement.

    

    Section
11.                                Successors.  All
the covenants and provisions hereof by or for the benefit of the Holder shall
bind and inure to the benefit of its respective successors and assigns
hereunder.

    

    Section
12.                                Governing
Law.  This Warrant shall be governed by, and construed in
accordance with, the internal laws of the State of New York, without regard to
the provisions thereof relating to conflict of laws.

    

    Section
13.                                No Rights as
Shareholder.  Prior to the exercise of this Warrant, the Holder
shall not have or exercise any voting rights or other rights as a shareholder of
the Company by virtue of its ownership of this Warrant.

    

    Section
14.                                Amendments.  This
Warrant shall not be amended without the prior written consent of the Company
and the Holder.

    

    Section
15.                                Section
Headings.  The section headings in this Warrant are for the
convenience of the Company and the Holder and in no way alter, modify, amend,
limit or restrict the provisions hereof.

    

    

    [remainder
of this page intentionally left blank]

     

     

     

     

     

     

     

     

     

     

     

     

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, the Company has
caused this Warrant to be duly executed, as of the 27th day of
June, 2008.

    

    BROADPOINT SECURITIES GROUP,
INC.

    

    

    

    By: /s/ Robert I. Turner

    Name:  Robert I.
Turner                     

    Title:    Chief
Financial
Officer                   

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

    
 

    APPENDIX
A

    BROADPOINT
SECURITIES GROUP, INC.

    WARRANT
EXERCISE FORM

    

    To:
BROADPOINT SECURITIES GROUP, INC.

    

    The undersigned hereby irrevocably
elects to exercise the right of purchase represented by the within Warrant
(“Warrant”)
for, and to purchase thereunder by the payment of the Exercise Price and
surrender of the Warrant, _______________ shares of Common Stock (“Warrant Shares”)
provided for therein, and requests that certificates for the Warrant Shares be
issued as follows:

    

    _______________________________

    Name

    ________________________________

    Address

    ________________________________

    ________________________________

    Federal Tax ID or Social Security
No.

    

    and delivered by

    

    q              certified
mail to the above address, or

    q              electronically
(provide DWAC Instructions:___________________), or

    q              other
(specify: __________________________________________).

    

    and, if
the number of Warrant Shares shall not be all the Warrant Shares purchasable
upon exercise of the Warrant, that a new Warrant for the balance of the Warrant
Shares purchasable upon exercise of this Warrant be registered in the name of
the undersigned Holder or the undersigned’s Assignee as below indicated and
delivered to the address stated below.

    

    Dated:
___________________, ____

    

    Signature:______________________

    ______________________________

    Name (please print)

    ______________________________

    ______________________________

    Address

    ______________________________

    Federal Identification or

    Social Security No.

    

    Assignee:

    _______________________________

    _______________________________

    _______________________________

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    APPENDIX
B

    BROADPOINT
SECURITIES GROUP, INC.

    NET ISSUE
ELECTION NOTICE

    

    

    To:
BROADPOINT SECURITIES GROUP, INC.

    

    Date:_________________________

    

    

    The undersigned hereby elects under
Section 3.1 of the Warrant to surrender the right to purchase ____________
shares of Common Stock pursuant to this Warrant and hereby requests the issuance
of _____________ shares of Common Stock.  The certificate(s) for the
shares issuable upon such net issue election shall be issued in the name of the
undersigned or as otherwise indicated below.

    

    

    _________________________________________

    Signature

    

    _________________________________________

    Name for Registration

    

    _________________________________________

    Mailing Addressex103.htm

     

     

                                                                                                                                                                                                                                                                                                   
EXHIBIT 10.3

                                                                                                                                                                                                                                              

                                                                                                                                                                                                                                                                                                   
Execution Copy

    

     

    

       

    BROADPOINT
SECURITIES GROUP, INC.

     

    REGISTRATION
RIGHTS AGREEMENT

     

    This
REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made
as of June 27, 2008, by and among (i) Broadpoint Securities Group, Inc., a New
York corporation (the “Company”), (ii) Mast
Credit Opportunities I Master Fund Limited, a Cayman Islands corporation (“Mast”), and (iii)
each person or entity that subsequently becomes a party to this Agreement
pursuant to, and in accordance with, the provisions of Section 12 hereof
(collectively, the “Investor Permitted
Transferees” and each individually an “Investor Permitted
Transferee”).

     

    WHEREAS,
the Company has agreed to issue and sell to Mast, and Mast has agreed to
purchase from the Company, shares of Series B Mandatory Redeemable Preferred
Stock and a warrant to purchase up to 1,000,000 shares (the “Warrant”) of the
Company’s common stock, $0.01 par value per share (the “Common Stock”), upon
the terms and conditions set forth in that certain Preferred Stock Purchase
Agreement, dated of even date herewith, by and between the Company and Mast (the
“Stock Purchase
Agreement”); and

     

    WHEREAS,
the terms of the Stock Purchase Agreement provide that it shall be a condition
precedent to the closing of the transactions thereunder, for the Company and
Mast to execute and deliver this Agreement.

     

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

     

    1.    DEFINITIONS.  The
following terms shall have the meanings provided therefor below:

     

     “Exchange Act” shall
mean the Securities Exchange Act of 1934, as amended, and all of the rules and
regulations promulgated thereunder.

     

     “Investors” shall
mean, collectively, Mast and the Investor Permitted Transferees; provided, however, that the
term “Investors” shall not
include Mast or any of the Investor Permitted Transferees to the extent that
such parties do not own any Registrable Securities.

     

    “Registrable
Securities” shall mean the shares of Common Stock issuable upon exercise
of the Warrant (as adjusted from time to time pursuant to the terms of the
Warrant), provided, however, such term
shall not include any Registrable Securities that have been sold pursuant to a
Registration Statement or Rule 144 or any of the Registrable Securities
that become or have become eligible for resale without restriction pursuant to
Rule 144.

     

    “Registration
Statement” means any one or more registration statements filed with the
SEC by the Company on Form S-3, or in the event the Company is not eligible to
use Form S-3, on such other form promulgated by the SEC as shall be appropriate
to permit the disposition of Registrable Securities in accordance with the
intended method of distribution, for the purpose of registering under the
Securities Act the Registrable Securities for resale by, and for the account of,
the Investors, including the prospectus included therein, amendments to such
registration statement or supplements to such prospectus, including pre- and
post-effective amendments, all exhibits thereto, and all material incorporated
by reference or deemed to be incorporated by reference in such registration
statement.

     

     “Rule 144” shall mean
Rule 144 promulgated by the SEC pursuant to the Securities Act, as such rule may
be amended from time to time, or any similar rule or regulation hereafter
adopted by the SEC having substantially the same purpose and effect as such
rule.

     

     “Rule 424” means
Rule 424 promulgated by the SEC pursuant to the Securities Act, as such
rule may be amended from time to time, or any similar rule or regulation
hereafter adopted by the SEC having substantially the same purpose and effect as
such rule.

     

     “SEC” shall mean the
U.S. Securities and Exchange Commission.

     

     “Securities Act” shall
mean the Securities Act of 1933, as amended, and all of the rules and
regulations promulgated thereunder.

     

    2.    EFFECTIVENESS.  This
Agreement shall become effective and legally binding upon execution and delivery
of the parties hereto.

     

    3.    COMPANY
REGISTRATION.  Subject to Section 5(b), if at
any time the Company proposes to register any of its Common Stock under the
Securities Act in connection with the public offering of such securities for its
own account or for the accounts of others on a form that would also permit the
registration of the Registrable Securities, the Company shall, each such time,
promptly give each Investor written notice of such determination and of such
holder’s rights under this Section
3.  Upon the written request of any Investor given within
twenty (20) days after mailing of any such notice by the Company, the Company
shall use its commercially reasonable efforts to cause to be registered under
the Securities Act all of the Registrable Securities that each such Investor has
requested be registered.  The foregoing notwithstanding, the Company
may, in its discretion, withdraw any registration statement referred to in this
Section 3 prior
to the effectiveness thereof.

     

    4.    REGISTRATIONS ON FORM
S-3.

     

    (a)           If
at any time when it is eligible to use a Form S-3 registration statement, the
Company receives a request from any Investor (the “Initiating Investor”)
that the Company file a Form S-3 registration statement with respect to
outstanding Registrable Securities of at least 300,000 shares of Common Stock
(or, if the aggregate amount of outstanding Registrable Securities are less than
300,000 shares of Common Stock, then no less than 100% of the remaining
outstanding Registrable Securities), then the Company shall (i) within ten (10)
days after the date such request is given, give notice thereof (the “Demand Notice”) to
all Investors other than the Initiating Investor; and (ii) as soon as
practicable, and in any event within forty-five (45) days after the date such
request is given by the Initiating Investor, file a Form S-3 registration
statement under the Securities Act covering all Registrable Securities requested
to be included in such registration by any other Investors, as specified by
notice given by each such Investor to the Company within twenty (20) days of the
date the Demand Notice is given, and in each case, subject to the limitations of
Section 4(b)
and Section
5(a) and (iii) shall use its commercially reasonable efforts to cause
such registration statement to be declared effective by the SEC.

     

    (b)           Notwithstanding
anything in this Agreement to the contrary, in the event:

     

    (i) of
any request by the SEC or any other federal or state governmental authority
during the period of effectiveness of a Registration Statement or amendments or
supplements to a Registration Statement or related prospectus or for additional
information;

     

    (ii) of
the issuance by the SEC or any other federal or state governmental authority of
any stop order suspending the effectiveness of a Registration Statement or the
initiation of any proceedings for that purpose;

     

    (iii) of
the receipt by the Company of any notification with respect to the suspension of
the qualification or exemption from qualification of any of the Registrable
Securities for sale under any state securities or “Blue Sky” laws, or the
initiation of any proceeding for such purpose;

     

    (iv) of
any event or circumstance which necessitates the making of any changes in a
Registration Statement or related prospectus, or any document incorporated or
deemed to be incorporated therein by reference, so that, in the case of a
Registration Statement, it will not contain any untrue statement of a material
fact or any omission to state a material fact required to be stated therein or
necessary to make the statements therein not misleading, and that in the case of
the prospectus, it will not contain any untrue statement of a material fact or
any omission to state a material fact required to be stated therein or necessary
to make the statements therein, in the light of the circumstances under which
they were made, not misleading; or

     

    (v) that
the Board has made the good faith determination (A) that continued use by
Investors of a Registration Statement for purposes of effecting offers or sales
of Registrable Securities pursuant thereto would require, under the Securities
Act, disclosure in a Registration Statement (or the prospectus relating thereto)
of material, nonpublic information concerning the Company, its business or
prospects or any proposed material transaction involving the Company, (B) that
such disclosure would be materially adverse to the Company, its business or
prospects or any such proposed material transaction or would make the successful
consummation by the Company of any such material transaction less likely and (C)
that it is therefore necessary to suspend the use by Investors of such
Registration Statement (and the prospectus relating thereto) for purposes of
effecting offers or sales of Registrable Securities pursuant
thereto,

     

    then the
Company shall furnish to Investors a certificate signed by the President or
Chief Executive Officer of the Company setting forth one or more of the above
described circumstances, and the right of Investors to use a Registration
Statement (and the prospectus relating thereto) shall be suspended for a period
(the “Suspension Period”) of not more than 30 days after delivery by the Company
of the certificate referred to above in this Section 4; provided that the
Company shall be entitled to no more than one such Suspension Period in any
fiscal quarter, and the aggregate of all Suspension Periods during the 12-month
period commencing on the date hereof and during each subsequent 12-month period
until the expiration or termination of the Warrant shall not exceed 60
days.  Notwithstanding the foregoing, no Suspension Period shall
exceed 15 days (or aggregate, with other such Suspension Periods, 30 days in any
such 12-month period) if the cause of the Suspension Period shall prevent the
Company under the Securities Act and or applicable SEC Guidance, from filing
with the SEC or causing to be declared effective a Registration Statement with
respect to Registrable Securities and not theretofore included in an effective
Registration Statement.  During the Suspension Period, none of
Investors shall offer or sell any Registrable Securities pursuant to or in
reliance upon a Registration Statement (or the prospectus relating thereto), and
each of Investors shall maintain in confidence the existence and content of the
above described certificate.  The Company shall use commercially
reasonable efforts to terminate any Suspension Period as promptly as
practicable.

     

    Investors’ rights to registration under
this Section 4
are in addition to, and not in lieu of, their rights to registration under Section
3.

     

    5.    UNDERWRITING
REQUIREMENTS.

     

    (a)           If,
pursuant to Section
4, the Initiating Investor intends to distribute the Registrable
Securities covered by its request by means of an underwriting, it shall so
advise the Company as a part of its request made pursuant to Section 4, and the
Company shall include such information in the Demand Notice.  The
underwriter(s) will be selected by the Initiating Investor, subject only to the
prior written consent of the Company (such consent not to be unreasonably
withheld).  In such event, the right of any Investor to include such
Investor’s Registrable Securities in such registration shall be conditioned upon
such Investor’s participation in such underwriting and the inclusion of such
Investor’s Registrable Securities in the underwriting to the extent provided
herein.  All Investors proposing to distribute their securities
through such underwriting shall enter into an underwriting agreement in
customary form with the underwriter(s) selected for such
underwriting.  Notwithstanding any other provision of this Section 5(a), if the
managing underwriter(s) advise(s) the Initiating Investor or the Company in
writing that marketing factors require a limitation on the number of shares to
be underwritten, then the Initiating Investor shall so advise all Investors of
Registrable Securities that otherwise would be underwritten pursuant hereto, and
the number of Registrable Securities that may be included in the underwriting
shall be allocated among such Investors of Registrable Securities, including the
Initiating Investor, in proportion (as nearly as practicable) to the number of
Registrable Securities owned by each Investor or in such other proportion as
shall mutually be agreed to by all such selling Investors; provided, however,
that the number of Registrable Securities held by the Investors to be included
in such underwriting shall not be reduced unless all other securities are first
entirely excluded from the underwriting.

     

    (b)           In
connection with any offering involving an underwriting of shares of the
Company’s capital stock pursuant to Section 3, the
Company shall not be required to include any of the Investors’ Registrable
Securities in such underwriting unless the Investors accept the terms of the
underwriting as agreed upon between the Company and its underwriters, and then
only in such quantity as the underwriters in their sole discretion determine
will not jeopardize the success of the offering by the Company.  If
the total number of securities, including Registrable Securities, requested by
stockholders to be included in such offering exceeds the number of securities to
be sold (other than by the Company) that the underwriters in their reasonable
discretion determine is compatible with the success of the offering, then the
Company shall be required to include in the offering the maximum number of
Registrable Securities, if any, which the underwriters and the Company in their
sole discretion determine will not jeopardize the success of the offering;
provided, however, that the number of securities other than Registrable
Securities to be included in such offering shall not be reduced unless all of
the Registrable Securities and all other securities requested by stockholders
with piggyback registration rights to be included in such offering (the
“Piggyback Securities”) are first entirely excluded from the
offering.  If the underwriters determine that less than all of the
Registrable Securities and Piggyback Securities requested to be registered can
be included in such offering, then the Registrable Securities and the Piggyback
Securities that are included in such offering shall be allocated among the
selling stockholders in proportion (as nearly as practicable to) the number of
Registrable Securities and Piggyback Securities owned by each selling
stockholder or in such other proportions as shall mutually be agreed to by all
such selling stockholders.

     

    6.    OBLIGATIONS OF THE
COMPANY.  Whenever required under Section 3 or 4 to use its
commercially reasonable efforts to effect the registration of any Registrable
Securities, the Company shall, as expeditiously as reasonably
possible:

    

    (a) prepare
and file with the SEC a Registration Statement with respect to such Registrable
Securities and use its commercially reasonable efforts to cause such
Registration Statement to be declared effective by the SEC;

     

    (b) prepare
and file with the SEC such amendments and supplements to a Registration
Statement and the prospectus included therein as may be necessary to comply with
the provisions of the Securities Act with respect to the disposition of all
Registrable Securities covered by a Registration Statement and to keep such
registration statement effective until the earlier of (i) 48 months after the
date of this Agreement, or (ii) such time as all securities subject to such
registration statement cease to be Registrable Securities;

     

    (c) furnish
to the selling Investors (i) each item of correspondence furnished to the
Company by the SEC or the staff of the SEC, in each case relating to such
Registration Statement (other than any portion of any thereof which contains
information for which the Company has sought confidential treatment), and (ii)
such number of copies of a prospectus, in conformity with the requirements of
the Securities Act and such other documents (including, without limitation, any
prospectus supplements prepared by the Company in accordance with Section 6(b) above)
as the selling Investors may reasonably request in order to facilitate the
disposition of such selling Investors’ Registrable Securities;

     

    (d) promptly
respond to any and all comments received from the SEC, with a view towards
causing each Registration Statement or any amendment thereto to be declared
effective by the SEC as soon as practicable;

     

    (e) use
commercially reasonable efforts to comply with all applicable rules and
regulations of the SEC under the Securities Act applicable to the offer and sale
of the Registrable Securities, including, without limitation, Rule 172, file any
final prospectus, including any supplement thereto, with the SEC pursuant to
Rule 424 under the Securities Act, promptly inform the Investors in writing if,
at any time after such registration statement becomes effective, the Company
does not satisfy the conditions specified in Rule 172 and, as a result thereof,
the Investors are required to deliver a prospectus in connection with any
disposition of Registrable Securities; notify the selling Investors of the
happening of any event as a result of which the prospectus included in a
Registration Statement contains an untrue statement of a material fact or omits
any fact necessary to make the statements therein not misleading; and,
thereafter, subject to Section 11 hereof,
promptly prepare (and, when completed, give notice and provide a copy thereof to
each selling Investor) a supplement to such prospectus so that such prospectus
will not contain an untrue statement of a material fact or omit to state any
fact necessary to make the statements therein not misleading; provided that after
any such notification by the Company, the selling Investors will not offer or
sell Registrable Securities until the Company has notified the selling Investors
that it has prepared a supplement to such prospectus and filed it with the SEC
or, if the Company does not then meet the conditions for the use of Rule 172,
delivered copies of such supplement to the selling Investors;

     

    (f) use
commercially reasonable efforts to register and qualify the Registrable
Securities covered by a Registration Statement under the securities or Blue Sky
laws of such states as the Investors shall reasonably request, provided that the
Company shall not be required in connection therewith or as a condition thereto
to qualify to do business or to file a general consent to service of process in
any such states or jurisdictions, and provided further that
(notwithstanding anything in this Agreement to the contrary with respect to the
bearing of expenses) if any jurisdiction in which any of such Registrable
Securities shall be qualified shall require that expenses incurred in connection
with the qualification therein of any such Registrable Securities be borne by
the selling Investors, then the selling Investors shall, to the extent required
by such jurisdiction, pay their pro rata share of such qualification
expenses;

     

    (g) subject
to the terms and conditions of this Agreement, the Company shall use its
commercially reasonable efforts to (i) prevent the issuance of any stop order or
other suspension of effectiveness of a Registration Statement, or the suspension
of the qualification of any of the Registrable Securities for sale in any
jurisdiction in the United States, and (ii) if such an order or suspension is
issued, obtain the withdrawal of such order or suspension at the earliest
practicable moment and notify each holder of Registrable Securities of the
issuance of such order and the resolution thereof or its receipt of notice of
the initiation or threat of any proceeding such purpose; and

     

    (h) comply
with all requirements of Nasdaq Stock Market LLC with regard to the issuance of
the securities and the listing thereof on the NASDAQ Global Market and such
other securities exchange or automated quotation system, as
applicable;

     

    (i) notify
the Investors of any pending proceeding against the Company under Section 8A of
the Securities Act in connection with the offering of the Registrable
Securities.

     

    7.    FURNISH
INFORMATION.  It shall be a condition precedent to the
obligations of the Company to take any action pursuant to this Agreement that
the selling Investors shall furnish to the Company such information regarding
them and the securities held by them as the Company shall reasonably request in
order to effect any registration by the Company pursuant to this
Agreement.  Each Investor shall promptly notify the Company of any
changes in the information furnished to the Company.

     

    8.    EXPENSES OF
REGISTRATION.  Except as set forth in Section 5(f), all
expenses incurred in connection with the registration of the Registrable
Securities pursuant to this Agreement (excluding brokerage and other selling
commissions and discounts), including without limitation all registration and
qualification and filing fees, printing, and fees and disbursements of counsel
for the Company, shall be borne by the Company; provided however that, except as
set forth below, the Investors shall be required to pay the expenses of counsel
and any other advisors for the Investors and any brokerage or other selling
discounts or commissions and any other expenses incurred by the Investors for
their own account. The Company shall reimburse Mast for the reasonable fees and
expenses of its counsel, not to exceed $5,000 in the aggregate, incurred in
connection with the review of one or more of the Registration
Statements.

     

    9.    DELAY OF
REGISTRATION.  The Investors shall not take any action to
restrain, enjoin or otherwise delay any registration as a result of any
controversy which might arise with respect to the interpretation or
implementation of this Agreement.

     

    10.    INDEMNIFICATION.

     

    (a) To the
extent permitted by law, the Company will indemnify and hold harmless each
selling Investor, and each officer and director of such selling Investor and
each person, if any, who controls such selling Investor, within the meaning of
the Securities Act, against any losses, claims, damages or liabilities, joint or
several, to which they may become subject under the Securities Act or otherwise,
insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon any untrue or alleged untrue statement
of any material fact contained in a Registration Statement in which such
Investor is named as a selling stockholder, in any prospectus relating thereto
or in any amendments to a Registration Statement or supplements to a prospectus
in which such Investor is named as a selling stockholder, or arise out of or are
based upon the omission or alleged omission to state therein a material fact
required to be stated therein, or necessary to make the statements therein not
misleading and will reimburse such selling Investor, or such officer, director
or controlling person for any legal or other expenses reasonably incurred by
them in connection with investigating or defending any such loss, claim, damage,
liability or action; provided, however, that the
indemnity agreement contained in this Section 10(a) shall
not apply to amounts paid in settlement of any such loss, claim, damage,
liability or action if such settlement is effected without the consent of the
Company (which consent shall not be unreasonably withheld), nor shall the
Company be liable in any such case for any such loss, damage, liability or
action to the extent that it arises out of or is based upon (i) an untrue
statement or alleged untrue statement made in connection with a Registration
Statement, any prospectus relating thereto or any amendments to a Registration
Statement or supplements to a prospectus or any omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading, in reliance upon and in conformity with written
information furnished expressly for use in connection with a Registration
Statement or any such prospectus by the selling Investors or (ii) at any time
when the Company has advised the Investor in writing that the Company does not
meet the conditions for use of Rule 172 and as a result the Investor is required
to deliver a current prospectus in connection with any disposition of
Registrable Securities, an untrue statement or alleged untrue statement or
omission in a prospectus corrected in any subsequent supplement to such
prospectus that was delivered to the selling Investor before the pertinent sale
or sales by the selling Investor.

     

    (b) To the
extent permitted by law, each selling Investor will severally and not jointly
indemnify and hold harmless the Company, each of its directors, each of its
officers who have signed a Registration Statement, each person, if any, who
controls the Company within the meaning of the Securities Act, and all other
selling Investors against any losses, claims, damages or liabilities to which
the Company or any such director, officer, controlling person, or such other
selling Investor may become subject, under the Securities Act or otherwise,
insofar as such losses, claims, damages or liabilities (or actions in respect
thereto) arise out of or are based upon (i) any untrue or alleged untrue
statement of any material fact contained in a Registration Statement or any
prospectus, relating thereto or in any amendments to a Registration Statement or
supplements to a prospectus, or arise out of or are based upon the omission or
alleged omission to state therein a material fact required to be stated therein
or necessary to make the statements therein not misleading, in each case to the
extent and only to the extent that such untrue statement or alleged untrue
statement or omission or alleged omission was made in a Registration Statement,
in any prospectus relating thereto or in any amendments to a Registration
Statement or supplements to any such prospectus, in reliance upon and in
conformity with written information furnished by the selling Investor expressly
for use in connection with a Registration Statement or any prospectus or (ii) at
any time when the Company has advised the Investor in writing that the Company
does not meet the conditions for use of Rule 172 and as a result that the
Investor is required to deliver a current prospectus in connection with any
disposition of Registrable Securities, was corrected in any subsequent
supplement to such prospectus that was delivered to the selling Investor before
the pertinent sale or sales by the selling Investor; and such selling Investor
will reimburse any legal or other expenses reasonably incurred by the Company or
any such director, officer, controlling person, or other selling Investor in
connection with investigating or defending any such loss, claim, damage,
liability or action, provided, however, that the
liability of each selling Investor hereunder shall be limited to the proceeds
received by such selling Investor from the sale of Registrable Securities giving
rise to such liability, and provided, further, however, that the
indemnity agreement contained in this Section 9(b) shall not apply to amounts
paid in settlement of any such loss, claim, damage, liability or action if such
settlement is effected without the consent of those selling Investor(s) against
which the request for indemnity is being made (which consent shall not be
unreasonably withheld).

     

    (c) Promptly
after receipt by an indemnified party under this Section 10 of notice of the
commencement of any action, such indemnified party will, if a claim in respect
thereof is to be made against any indemnifying party under this Section 10, notify
the indemnifying party in writing of the commencement thereof and the
indemnifying party shall have the right to participate in and, to the extent the
indemnifying party desires, jointly with any other indemnifying party similarly
noticed, to assume at its expense the defense thereof with counsel satisfactory
to the indemnified party or parties, but the omission so to notify the
indemnifying party will not relieve it from any liability which it may have to
any indemnified party for indemnification, contribution or otherwise under the
indemnity agreement contained in this Section 10 except to
the extent that such omission materially and adversely affects the indemnifying
person’s ability to defend such action.  In the event that the
indemnifying party assumes any such defense, the indemnified party may
participate in such defense with its own counsel and at its own expense,
provided, however, if the defendants in any such action include both the
indemnified party and the indemnifying party and the indemnified party shall
have reasonably concluded, based on an opinion of counsel reasonably
satisfactory to the indemnifying party, that there may be a conflict of interest
between the positions of the indemnifying party and the indemnified party in
conducting the defense of any such action or that there may be legal defenses
available to it and/or other indemnified parties which are different from or
additional to those available to the indemnifying party, the indemnified party
or parties shall have the right to select separate counsel to assume such legal
defenses and to otherwise participate in the defense of such action on behalf of
such indemnified party or parties. Upon receipt of notice from the indemnifying
party to such indemnified party of its election to assume the defense of such
action and approval by the indemnified party of counsel, the indemnifying party
will not be liable to such indemnified party under this Section 10 for any
legal or other expenses subsequently incurred by such indemnified party in
connection with the defense thereof unless  the indemnified party
shall have employed such counsel in connection with the assumption of legal
defenses in accordance with the proviso to the preceding sentence (it being
understood, however, that the indemnifying party shall not be liable for the
expenses of more than one separate counsel and one local counsel, reasonably
satisfactory to such indemnifying party, representing all of the indemnified
parties who are parties to such action in which case the reasonable fees and
expenses of counsel shall be at the expense of the indemnifying
party).

     

    (d) Notwithstanding
anything to the contrary herein, the indemnifying party shall not be entitled to
settle any claim, suit or proceeding unless in connection with such settlement
the indemnified party receives an unconditional release with respect to the
subject matter of such claim, suit or proceeding and such settlement does not
contain any admission of fault by the indemnified party.

     

    (e) If the
indemnification provided for in this Section 10 is
unavailable to or insufficient to hold harmless an indemnified party under
subsection (a) or (b) above in respect of any losses, claims, damages or
liabilities (or actions or proceedings in respect thereof) referred to therein,
then each indemnifying party shall contribute to the amount paid or payable by
such indemnified party as a result of such losses, claims, damages or
liabilities (or actions in respect thereof) in such proportion as is appropriate
to reflect the relative fault of the Company on the one hand and the Investors
on the other in connection with the statements or omissions or other matters
which resulted in such losses, claims, damages or liabilities (or actions in
respect thereof), as well as any other relevant equitable
considerations.  The relative fault shall be determined by reference
to, among other things, in the case of an untrue statement, whether the untrue
statement relates to information supplied by the Company on the one hand or an
Investor on the other and the parties’ relative intent, knowledge, access to
information and opportunity to correct or prevent such untrue statement. The
Company and the Investors agree that it would not be just and equitable if
contribution pursuant to this subsection (e) were determined by pro rata
allocation (even if the Investors 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 above in this subsection
(e).  The amount paid or payable by an indemnified party as a result
of the losses, claims, damages or liabilities (or actions in respect thereof)
referred to above in this subsection (e) shall be deemed to include any legal or
other expenses reasonably incurred by such indemnified party in connection with
investigating or defending any such action or claim.  No person guilty
of fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. The Investors’ obligations in this
subsection to contribute are several in proportion to their sales of Registrable
Securities to which such loss relates and not joint. In no event shall the
contribution obligation of an Investor be greater in amount than the dollar
amount of the proceeds (net of all expenses paid by such Investor in connection
with any claim relating to this Section 10 and the amount of any damages such
Investor has otherwise been required to pay by reason of such untrue or alleged
untrue statement or omission or alleged omission) received by it upon the sale
of the Registrable Securities giving rise to such contribution
obligation.

     

    11.    REPORTS UNDER THE EXCHANGE
ACT.  With a view to making available to the Investors the
benefits of Rule 144 and any other rule or regulation of the SEC that may at any
time permit the Investors to sell the Securities to the public without
registration, the Company agrees to use commercially reasonable efforts: (i) to
make and keep public information available as those terms are understood in Rule
144, (ii) to file with the SEC in a timely manner all reports and other
documents required to be filed by an issuer of securities registered under the
Exchange Act so that sellers of the Company’s securities may avail themselves of
Rule 144, (iii) as long as any Investor owns any Registrable Securities, to
furnish in writing upon such Investor’s request a written statement by the
Company that it has complied with the reporting requirements of the Exchange Act
referred to in Rule 144, and (iv) undertake any additional actions reasonably
necessary to maintain the availability of a Registration Statement or the use of
Rule 144.

     

    12.    TRANSFER OF REGISTRATION
RIGHTS.  An Investor may transfer or assign, in whole or from
time to time in part, to one or more persons its rights hereunder in connection
with the permitted transfer of Registrable Securities by such Investor (other
than by a sale pursuant to a Registration Statement or Rule 144) to such person,
provided that such Investor complies with the Warrant and all applicable laws
and provides prior written notice of such assignment to the Company within five
(5) Business Days of the effective date of such assignment, and provided further
that such person agrees to become a party to, and bound by, all of the terms and
conditions of, this Agreement by duly executing and delivering to the Company an
Instrument of Adherence in the form attached as Exhibit A
hereto.

     

    13.    ENTIRE
AGREEMENT.  This Agreement, the Stock Purchase Agreement, the
Preemptive Rights Agreement and the Warrant constitute and contain the entire
agreement and understanding of the parties with respect to the subject matter
hereof, and supersede any and all prior negotiations, correspondence, agreements
or understandings with respect to the subject matter hereof.

     

    14.    MISCELLANEOUS.

     

    (a) This
Agreement may not be amended, modified or terminated, and no rights or
provisions may be waived, except with the written consent of the Investors
holding at least a majority of the then outstanding Registrable Securities and
the Company.

     

    (b) This
Agreement shall be governed by and construed and enforced in accordance with the
laws of the State of New York, and without regard to any conflicts of laws
concepts which would apply the substantive law of some other jurisdiction, and
shall be binding upon and inure to the benefit of the parties hereto and their
respective heirs, personal representatives, successors or assigns, provided that, to the
extent applicable, the terms and conditions of Section 12 hereof are
satisfied.  This Agreement shall also be binding upon and inure to the
benefit of any transferee of any of the Registrable Securities provided that the
terms and conditions of Section 12 hereof are
satisfied.  Notwithstanding anything in this Agreement to the
contrary, if at any time any Investor shall cease to own any Registrable
Securities, all of such Investor’s rights under this Agreement shall immediately
terminate.

     

    (c) Each of
the parties hereto irrevocably submits to the exclusive jurisdiction of the
courts of the State of New York located in New York County and the United States
District Court for the Southern District of New York for the purpose of any
suit, action, proceeding or judgment relating to or arising out of this
Agreement and the transactions contemplated hereby.  Service of
process in connection with any such suit, action or proceeding may be served on
each party hereto anywhere in the world by the same methods as are specified for
the giving of notices under this Agreement.  Each of the parties
hereto irrevocably consents to the jurisdiction of any such court in any such
suit, action or proceeding and to the laying of venue in such
court.  Each party hereto irrevocably waives any objection to the
laying of venue of any such suit, action or proceeding brought in such courts
and irrevocably waives any claim that any such suit, action or proceeding
brought in any such court has been brought in an inconvenient forum. EACH OF THE PARTIES HERETO WAIVES ANY
RIGHT TO REQUEST A TRIAL BY JURY IN ANY LITIGATION WITH RESPECT TO THIS
AGREEMENT AND REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS
WAIVER.

     

    (d) Any
notices, reports or other correspondence (hereinafter collectively referred to
as “correspondence”) required or permitted to be given hereunder shall be in
writing and shall be sent by postage prepaid first class mail, courier or
telecopy or delivered by hand to the party to whom such correspondence is
required or permitted to be given hereunder, and shall be deemed sufficient upon
receipt when delivered personally or by courier, overnight delivery service or
confirmed facsimile, or three (3) business days after being deposited in the
regular mail as certified or registered mail (airmail if sent internationally)
with postage prepaid, if such notice is addressed to the party to be notified at
such party’s address or facsimile number as set forth below:

     

    (i)    All correspondence to
the Company shall be addressed as follows:

     

    Broadpoint
Securities Group, Inc.

    One Penn
Plaza, 42nd
Floor

    New York,
New York 10119

    Fax:
(212) 273-7100

    Attention:  General
Counsel

     

    with a copy by fax or messenger or
courier to:

     

    

    Cahill/Wink LLP

    5 Penn Plaza, 23rd floor

    New York, NY 10001

    Fax:
(646) 378-2025

     

    Attention:  Stephen
Wink, Esq.

     

    (ii)   All correspondence to Mast
shall be addressed as follows:

        

                    If to
Mast before
September 15, 2008, at the following address:

     

                    MAST
Credit Opportunities I Master Fund Limited

                    c/o MAST
Capital Management, LLC

                    535
Boylston Street, Suite 401

                    Boston,
Massachusetts 02116

                    Attention:
John S. Ehlinger

                    Fax:
(617) 247-7985

    

    If to Mast after September 15,
2008, at the following address:

     

                    MAST
Credit Opportunities I Master Fund Limited

                    c/o MAST
Capital Management, LLC

                    200
Clarendon Street, 51st
Floor

                    Boston,
Massachusetts 02116

                    Attention:
John S. Ehlinger

     

     

                    with a copy by fax or
messenger or courier to:

     

    Foley
Hoag LLP

    Bay
Colony Corporate Center

    1000
Winter Street, Suite 4000

    Waltham,
Massachusetts 02451

    Attention:
David A. Broadwin, Esq.

    Fax:
(617) 832-7000

    

     

    (iii)  Any
entity may change the address to which correspondence to it is to be addressed
by written notification as provided for herein.

     

    (e) The
parties acknowledge and agree that in the event of any breach of this Agreement,
remedies at law may be inadequate, and each of the parties hereto shall be
entitled to seek specific performance of the obligations of the other parties
hereto and such appropriate injunctive relief as may be granted by a court of
competent jurisdiction.

     

    (f) Should
any part or provision of this Agreement be held unenforceable or in conflict
with the applicable laws or regulations of any jurisdiction, the invalid or
unenforceable part or provisions shall be replaced with a provision which
accomplishes, to the extent possible, the original business purpose of such part
or provision in a valid and enforceable manner, and the remainder of this
Agreement shall remain binding upon the parties hereto.

     

    (g) This
Agreement may be executed in a number of counterparts, any of which together
shall for all purposes constitute one Agreement, binding on all the parties
hereto notwithstanding that all such parties have not signed the same
counterpart.

     

    [Signature
Page to Follow]

     

     

     

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the parties hereto have executed this Registration Rights
Agreement as of the date and year first above written.

     

    Broadpoint
Securities Group, Inc.

     

     

    By: /s/
Robert I. Turner

    Name: 
Robert I. Turner

    Title:   
Chief Financial Officer

     

    

     

    Mast
Credit Opportunities I Master Fund Limited

    

    

    By: /s/
Christopher B. Madison

    Name: 
Christopher B. Madison

    Title:   
Partner

     

    

     

    
      
        
           

          
            	
                    
                    

                    [Signature Page to
      Registration Rights Agreement]

                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
A

     

    Instrument of
Adherence

     

    Reference
is hereby made to that certain Registration Rights Agreement, dated as of June
27, 2008, among Broadpoint Securities Group, Inc., a Delaware corporation (the
“Company”),
Mast and the Investor Permitted Transferees, as amended and in effect from time
to time (the “Registration Rights
Agreement”). Capitalized terms used herein without definition shall have
the respective meanings ascribed thereto in the Registration Rights
Agreement.

     

    The
undersigned hereby agrees that, from and after the date hereof, the undersigned
has become a party to the Registration Rights Agreement in the capacity of an
Investor Permitted Transferee, and is entitled to all of the benefits under, and
is subject to all of the obligations, restrictions and limitations set forth in,
the Registration Rights Agreement that are applicable to Investor Permitted
Transferees.  This Instrument of Adherence shall take effect and shall
become a part of the Registration Rights Agreement immediately upon
execution.

     

    All
Notice should be sent to the undersigned at the following address:

     

    Name:

     

    Address:

     

    Attention:

     

    Facsimile:

     

    Email:

     

    Executed
as of the date set forth below under the laws of the State of New
York.

     

    

     

    Signature:
______________________________

    Name:

    Title:

     

    Accepted:

     

    [                                                ]

    

    

    By:
_________________________

    Name:

    Title:

     

    Date:  _________,
200_

     

    

    
      
        
          
            	 
      	
                    A-1

                  	 
      
	
                    B3502943.4

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