Document:

Exhibit 10.3

November 30, 2010

John J. Borer
III 

Dear John: 

          We are
pleased to offer you continued employment with Rodman & Renshaw, LLC (the
“Company”) in the capacity of Senior Managing Director. In connection with your
employment with the Company, you will be required to maintain your status as a
“registered representative” (as such term is defined in the rules and
regulations of the Financial Industry Regulatory Authority (“FINRA”)) of the
Company and remain in good standing with FINRA.  

          You will
receive a salary at the annualized rate of $150,000, payable according to the
Company’s prevailing payroll schedule. You will be eligible for a discretionary
bonus, to be determined at the sole discretion of the Company and payable in
accordance with then-prevailing policy, including, but not limited to the
Company’s Executive Bonus Plan, some portion of which may be payable in
restricted stock or restricted stock units of Rodman & Renshaw Capital
Group, Inc. In no event, however, will you be eligible for consideration to
receive any such bonus (or any portion thereof) for any year if you are not
actively employed by the Company on, or have received or given notice of
termination or resignation prior to, the date on which bonuses for the
applicable year are paid to employees generally; provided, however, that in the
event that you terminate your employment with the Company for “Good Reason” (as
defined below), or your employment is terminated by the Company other than for
“Cause,” (as defined below), you will be entitled to receive a bonus for the
pro rata portion of the year in which such termination occurred, based upon
actual performance for the year of termination. You will be eligible and entitled
to participate, on the same basis and at the same level as other employees
performing similar functions for the Company, in any pension, profit-sharing,
bonus and equity plans or programs of the Company, if any, and in any group
medical, dental, life and disability insurance plans or programs of the
Company, if any, all in accordance with the terms and conditions of the
applicable plan documents. You will also be entitled to such other fringe
benefits and conditions of employment, including without limitation, customary
holidays and vacation, as appropriate for an employee of comparable rank, under
Company programs and policies which may be amended from time to time. All
amounts of compensation paid to you shall be paid subject to applicable taxes,
deductions and withholdings.  

          Further,
within ten (10) business days following the execution of this agreement (the
“Agreement”), the Company shall pay to you a signing advance equal to $250,000,
less all applicable withholding. In the event that you terminate your
employment with the Company on or prior to November 30, 2011, other than for
“Good Reason” (as defined below), or your employment is terminated by the
Company for “Cause,” (as defined below), you agree to promptly reimburse the
Company for the full amount of such advance. The advance shall be fully earned
and non-reimbursable (a) if you remain in the continuous employ of the Company
through November 30, 2011, (b) in the event that, on or prior to November 30,
2011, you terminate your employment with the Company for “Good Reason” (as
defined below), (c) in the event that, on or prior to November 30, 2011, your
employment is terminated by the Company other than for “Cause” (as defined
below), or (d) in the event of your death on or before November 30, 2011.  

Rodman & Renshaw, LLC o 1251 Avenue of the
Americas, 20th Floor, New York, NY 10020 

Tel: 212 356 0500 o
Fax: 212 581 5690 o
www.rodm.com o
Member: FINRA, SIPC

          On the date
of execution of this Agreement, you will be granted 300,000 Restricted Stock
Units (“RSUs”) under the Company’s 2010 Stock Award and Incentive Plan (the
“Plan”) pursuant to a Restricted Stock Unit Agreement in the form annexed
hereto as Exhibit A.  

          For
purposes of this Agreement, “Cause” shall mean: (1) your continuing willful
failure to substantially perform the duties assigned to you for any reason
other than total or partial incapacity due to physical or mental illness; (2)
willful misconduct on your part in the performance of the duties assigned to you
that causes significant harm to the Company; (3) failure to maintain any
license or registration required to be maintained by the rules and regulations
of FINRA, the Securities and Exchange Commission, or any other federal or state
regulatory agency having jurisdiction over your business conduct as an employee
of the Company and/or any of its affiliates, if any; or (4) conviction of a (i)
felony or (ii) misdemeanor which misdemeanor involves moral turpitude. For the
purposes of this Agreement, “Good Reason” shall mean if: (1) the Company
breaches this Agreement in any respect that is materially adverse to you; (2)
you are assigned duties materially inconsistent with your position with the
Company and adverse to you, or a materially adverse change occurs in your
reporting responsibilities, or your title, position, duties or responsibilities
are changed in a materially adverse manner; or (3) your primary place of
employment is changed to other than the Company’s executive offices or such
executive offices are moved to a location beyond a twenty-five (25) mile radius
of 42nd Street and Park Avenue, Manhattan, New York City; provided,
however, that you provide written notice to the Company that an event has
occurred or condition arisen constituting Good Reason within sixty (60) days
after the initial occurrence of such event or existence of such condition, and
the Company has failed to fully cure the Good Reason event or condition within
thirty (30) days of receipt of such written notice, and you provide to the Company
notice of termination for Good Reason at least thirty (30) days prior to a
specified termination date (such notice may be given together with the notice
of the occurrence of a Good Reason event or condition but the termination date
may not be earlier than the end of the permitted period in which the Company
may cure such event or condition).  

          Notwithstanding
anything to the contrary contained herein, in the event that you resign from
the Company other than for Good Reason, or your employment is terminated by the
Company for Cause, you (1) will be entitled to receive only the amount of your
salary (with appropriate tax withholdings and other payroll deductions) through
the last day that you actually work at the Company, (2) you shall not be entitled
to receive any additional salary whatsoever, and (3) you shall not be entitled
to receive any bonus whatsoever.  

          Your
employment and all of the above compensation and benefits are and shall remain
expressly conditioned upon your attaining and maintaining all appropriate
licenses necessary for you to conduct the functions of your job at the Company,
satisfactory completion of employment and education checks, a criminal
background check, verification of your identity and authorization to legally
work in the United States, and your continuing compliance with the securities
compliance rules of the Company, the Constitution, bylaws, rules and
regulations of FINRA, and the rules and regulations of the Securities and
Exchange Commission, national and regional exchanges, clearing corporations,
and all other federal and state authorities or regulatory agencies having
jurisdiction over your business conduct, as may be in force from time to time. 

          Both during
and after your employment with the Company, you shall keep secret and maintain
in strictest confidence, and shall not use for the benefit of yourself or
others except in connection with the business of the Company, all information
or materials relating to the actual or 

Page 2 of 5

prospective business of the Company or its affiliates (and all
information or material received from others in the course of the Company’s
actual or prospective business) which is obtained by you in the course of your
employment with the Company and is not otherwise publicly available (provided that you were not responsible, directly or indirectly, for such information
entering the public domain without the Company’s consent). Promptly upon your
resignation or termination, you shall surrender to the Company all documents,
work papers, lists, memoranda, records and other data (including all copies)
constituting or pertaining in any way to any of the foregoing information. If
you resign or are terminated for any reason, then for one year following the
date of your resignation or termination you agree not to solicit, attempt to
solicit, or encourage any employee to leave the employment of the Company or
its affiliates, and not to interfere with or disrupt any other then existing
contractual relationship (so long as it continues to exist during the one year
period set forth above) between the Company or its affiliates and any other
person or entity. In addition, if you resign other than for Good Reason or are
terminated by the Company for Cause, then (i) for six months following the date
of your resignation or termination you agree not to solicit or participate in
the solicitation of any part of the business of the Company or its affiliates
from any person or entity which was a client of the Company or its affiliates at
the time of your resignation or termination, and (ii) for three months
following the date of your resignation or termination you agree not to solicit
or participate in the solicitation of any part of the business of the Company
or its affiliates from any person or entity which is a prospective client of
the Company or its affiliates.  

          You
understand and agree that you are performing work for hire for the Company and
that any Inventions developed or conceived by you during your employment with the
Company are the sole property of the Company. “Inventions” shall include any
inventions, improvements, developments, discoveries, programs, designs,
machinery, products, processes, information systems and software, as well as
any other concepts, works and ideas, whether patentable or not, relating to any
present or prospective activities or business of the Company. You agree to make
the Company aware of all such Inventions. To the maximum extent permitted by
applicable law, you further agree to assign and do hereby assign to the Company
all rights, title and interest in and to all such Inventions hereafter made by
you. You will, with reasonable reimbursement for expenses but at no other
expense to the Company, at any time during or after your employment with the
Company, sign and deliver all lawful papers and cooperate in such other lawful
acts reasonably necessary to allow the Company to secure, perfect and enforce
such rights and title in the Inventions. This Section does not apply to any
Invention for which you affirmatively proves that (a) no equipment, supplies,
facility, or confidential or trade secret information of the Company was used;
(b) which was developed entirely on your own time, and (c) did not result,
either directly or indirectly, from any work performed by you for the Company. 

          In
accepting this offer, you represent and warrant to the Company that you are not
subject to any agreement or understanding with any current or prior employer or
business (or any other entity or person) which would in any manner preclude you
from fulfilling any of the duties or obligations you would have with the
Company or which would result in any additional payment from the Company. You
further recognize and agree that, to the extent you possess any confidential,
proprietary or trade secret information of a third party, you may not and shall
not use or disclose such information in performing your duties for the Company.

          Both you
and the Company agree and acknowledge that the Employment Agreement between you
and the Company dated March 1, 2007 (as amended to date) shall terminate upon
the execution of this Agreement and all rights and obligations of the parties
thereunder shall immediately cease and terminate. 

Page 3 of 5

          The
Company agrees to use reasonable efforts to maintain one or more directors and
officers liability insurance policies (collectively, the “Policy”) in a
reasonable and adequate amount determined by the Board of Directors of the
Company that provides coverage of at least $10 million, with you included as a
named insured or as member of a group or class within the definition of a named
insured in the Policy.  

          The
following provisions are intended to cause compensation payable hereunder to be
excluded from being deferrals of compensation under Section 409A of the
Internal Revenue Code or, if not excluded, to comply with applicable
requirements of Section 409A so that no tax penalties become payable by you: 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 The compensation items payable to you under this Agreement, including
 salary, annual bonus, and the signing advance, and other items of
 compensation payable to you under any prior agreement, plan, program or
 policy (including each installment, where installments are or were payable),
 each shall be deemed a separate payment for purposes of and to the maximum
 extent permitted under Section 409A. 

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 If any payment hereunder is deemed to be in substitution for a prior
 right to payment, and such prior right to payment constituted a deferral of
 compensation for purposes of Section 409A, the corresponding payment
 hereunder shall be payable only at the times the prior payment was payable
 (subject to (iii) below) so as to comply with requirements under Section
 409A, except to the extent an alternative payout date would be permissible
 under Section 409A. 

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (iii)

 	
 Any bonus or other payment hereunder that does not constitute a
 deferral of compensation under Section 409A shall be payable to you during
 the applicable short-term deferral period. Any payment hereunder (including a
 corresponding payment) which constitutes a deferral of compensation, if
 payable to you upon your termination of employment, shall be payable no later
 than the first payroll date coinciding with or following your separation from
 service (as defined in Treasury Regulation § 1.409A-1(h)), except (i) if a
 specific payment time is otherwise specified hereunder and that payment time
 is compliant with Section 409A, the payment shall be made at that time, and
 (ii) if you are a Specified Employee as defined under Section 409A and the
 payment otherwise would be at a date tied to separation from service and
 within six months after your separation from service, the payment shall be
 delayed until the date six months and one day after your separation from
 service. 

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (iv)

 	
 If a payment could be validly made in a period that includes portions
 of two tax years, you will have no right to control or influence the
 Company’s decision as to which tax year in which it will make such payment. If
 you are required to execute any document as a condition to receipt of a
 payment, the Company will supply the document by the date of your termination
 and you must sign and return it (and not revoke it) within any applicable
 period required by law and in no event more than 52 days after receipt of the
 document. Any amount that may be retained by the Company and applied to repay
 an obligation you may have to the Company may only be so applied at the time
 the amount otherwise would 

 	
  

 

Page 4 of 5

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 have been payable to you, and cannot operate to relieve you of any
 obligation to repay at any time prior to the time such amount becomes
 payable. No right to any payment or benefit under this Agreement that
 constitutes a deferral of compensation shall be subject to anticipation,
 alienation, sale, transfer (except under laws of descent and distribution),
 assignment, pledge, encumbrance, attachment, or garnishment by your creditors
 or the creditors of any of your beneficiaries.

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
           THIS
 AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
 THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE FULLY PERFORMED
 THEREIN.

 
	
  

 
	
           This
 Agreement contains all of the terms of your employment on which we have
 agreed, and cannot be changed except by in writing signed by both parties.
 Nothing in this Agreement changes the fact that you are an at-will employee.
 This Agreement supersedes all prior verbal and/or written communication
 between you and the Company with respect to the subject matter hereof.

 

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Sincerely,

 
	
  

 	
  

 	
 /s/ Gregory R. Dow          

 
	
  

 	
  

 	
 Gregory R.
 Dow

 
	
  

 	
  

 	
 General
 Counsel

 
	
 Accepted as
 of the date set forth above:

 	
  

 
	
 /s/ John J. Borer III

 	
  

 	
  

 
	

 

 	
  

 	
  

 
	
 John J.
 Borer III

 	
  

 	
  

 

Page 5 of 5Exhibit 10.4

 

RODMAN & RENSHAW
CAPITAL GROUP, INC.

2010 STOCK AWARD AND INCENTIVE PLAN

 

Restricted
      Stock Units Agreement

      (Employees – 2010
Performance-Vesting Grant)

 

This
    Restricted Stock Units Agreement (the "Agreement," which includes the "Terms and Conditions of Restricted Stock Units" attached hereto) confirms the grant on November 30, 2010 (the "Grant Date"),
    by Rodman & Renshaw Capital Group, Inc., a
    Delaware corporation (the "Company"), to __________ ("Employee") of Restricted Stock Units ("RSUs"),
as follows: 

 

	
             
 	
            Number granted:
 	
            ___________ RSUs
 

 

	
             
 	
            RSUs vest:
 	
             

 
 

 

The
    RSUs, provided they have not previously been forfeited as provided herein,
    shall vest as to one-fifth of the underlying shares on each of February 28,
    2012, February 28, 2013, February 28, 2014, February 28, 2015 and February
    28, 2016 (each a "Stated Vesting Date") subject in each year to the Company having achieved “non-GAAP net income before executive bonuses plus or minus adjustments for certain events related to non-cash principal transactions, non-recurring legal fees and the impairment of goodwill and other intangible assets, as calculated consistent with past practice” for
    the respective preceding calendar year, failing which the RSUs for such year
    shall be forfeited (except as otherwise provided in Section 4 below). In
    addition, the RSUs, if not previously forfeited, will become immediately
    vested upon a Change in Control and will vest on an accelerated basis upon
    the occurrence of certain events relating to Termination of Employment (as
defined below), in accordance with Section 4 hereof.

 

Further restriction and settlement:

 

Any
    RSUs that vest as provided above and are not forfeited remain subject to
    the further restriction that they shall be settled on February 28, 2016 except
    that during the period following vesting of such RSUs and ending February
    28, 2016 (the "Mandatory Restriction Period"), settlement
    of the vested RSUs shall be accelerated upon occurrence of certain events
    as set forth in Section 4(a) or 4(d) below, subject in all cases to Section
    6 below. Such RSUs shall be settled at the applicable date by delivery of
    one share of the Company's Common Stock, $.001 par value, for each RSU being
    settled, with such delivery to occur in the manner determined by the Company
    but not later than 30 days after the applicable settlement date, except that
    if termination is governed by Section 4(b) below this period shall be 60
    days and if termination results from death settlement shall be on the 60th
day following death. 

 

Settlement
    of RSUs at any settlement date is subject to compliance with requirements
    under Section 409A of the Internal Revenue Code (the “Code”), as
    required under Section 6 below. In the case of any settlement triggered by
    a Termination of Employment, the six-month delay rule under Section 409A
may apply, as provided in Section 6 below. 

 

*  *  *  *  *  *

 

The
    RSUs are subject to the terms and conditions of the 2010 Stock Award and
    Incentive Plan (the "Plan"), and this Agreement, including the Terms and
    Conditions of Restricted Stock Units attached hereto. The number of RSUs
    and the kind of shares deliverable in settlement of RSUs are subject to adjustment
in accordance with Section 5 hereof and Section 11(c) of the Plan.

 

 

1

 

Employee acknowledges and agrees that (i) RSUs are nontransferable, except as provided in Section 3 hereof and Section 11(b) of the Plan, (ii) RSUs are subject to forfeiture in the event of Employee's Termination of Employment in certain circumstances prior to vesting, as specified in Section 4 hereof, (iii) sales of shares delivered in settlement of RSUs will be subject to the Company's policies regulating trading by employees, if applicable, and (iv) a copy of the Plan and related prospectus have previously been delivered to Employee or are available upon request of the Company's General Counsel.

 

IN
    WITNESS WHEREOF, Rodman & Renshaw
Capital Group, Inc. has caused this Agreement to be executed by its officer thereunto duly authorized, and Employee has duly executed this Agreement, by which each has agreed to the terms of this Agreement. 

 

	
             
 	
            RODMAN & RENSHAW
            CAPITAL GROUP, INC.
 

 

 

	
            Date:  November 30, 2010
 	
            By:_________________________________
 

David Horin 

Chief Financial Officer

 

Employee:

 

 

	
            Date:  November 30, 2010
 	
            _________________________________
 
	
             
 	
            [Name]
 	
             

 

 

2

 

TERMS AND CONDITIONS OF RESTRICTED STOCK UNITS

 

The
    following Terms and Conditions apply to the RSUs granted to Employee by Rodman & Renshaw
      Capital Group, Inc. (the "Company"),
      as specified in the Restricted Stock Units Agreement (of which these Terms
      and Conditions form a part). Certain terms of the RSUs, including the number
      of RSUs granted, vesting date(s) and settlement date, are set forth on
the preceding pages. 

 

1.           General.
    The RSUs are granted to Employee under the Company's 2010 Stock Award and
    Incentive Plan (the "Plan"), a copy of which is available for review, along with other documents constituting the "prospectus" for the Plan, from the Company's General Counsel.  All of the applicable terms, conditions and other provisions of the Plan are incorporated by reference herein.  Capitalized terms used in this Agreement but not defined herein shall have the same meanings as in the Plan.  If there is any conflict between the provisions of this document and mandatory provisions of the Plan, the provisions of the Plan govern.  By accepting the grant of the RSUs, Employee agrees to be bound by all of the terms and provisions of the Plan (as presently in effect or later amended), the rules and regulations
under the Plan adopted from time to time, and the decisions and determinations of the Company's Compensation Committee (the "Committee")
made from time to time, provided that no such Plan amendment, rule or regulation
or Committee decision or determination shall materially and adversely affect
the rights of the Employee with respect to outstanding RSUs.

 

2.           Account for Employee. The
    Company shall maintain a bookkeeping account for Employee (the "Account")
    reflecting the number of RSUs then credited to Employee hereunder as a result
of such grant of RSUs.

 

3.           Nontransferability.
    Until RSUs become settleable in accordance with the terms of this Agreement,
    Employee may not transfer RSUs or any rights hereunder to any third party
    other than by will or the applicable laws of descent and distribution, except
    for transfers to a designated beneficiary upon death to the extent permitted
    by the Company and subject to the conditions under Section 11(b) of the Plan.
    This restriction on transferability of the RSUs precludes any anticipation,
    alienation, sale, transfer, assignment, pledge, encumbrance, attachment,
or garnishment by Employee's creditors or of any beneficiary.

 

4.           Termination Provisions.
    In the event of Employee's Termination of Employment for any reason before
    a given RSU has vested, such unvested RSU shall be forfeited unless otherwise
    determined by the Committee or otherwise provided in Subsections (a) – (d) below.  Subsection (a) – (d)
    below also specify terms regarding acceleration of vesting upon a Change
in Control and settlement.

 

(a)         Death or Disability.  In the event of the death of Employee or Employee's Termination of Employment due to Disability (as defined in the Plan), all of the RSUs, to the extent then outstanding (i.e., not previously forfeited) but not previously vested, will vest and become non-forfeitable immediately, and such RSUs, together with any then-outstanding RSUs that previously became vested and non-forfeitable, will have a settlement date that is the 60th day following death, or in the case of Disability, the date of such Termination of Employment (subject to Section 6(b)).

 

(b)         Termination by the Company Not For Cause.  In
    the event of Employee's Termination of Employment by the Company not for
    Cause (as defined below) and provided Employee signs a standard release of
    liability in connection with Employee’s Termination, any then unvested
    RSUs not previously forfeited will be deemed immediately vested in full at
    the time of such Termination and will not be forfeited, and such RSUs, together
    with any then-outstanding RSUs that previously became vested and non-forfeitable,
    will be settled at the end of the Mandatory Restriction Period as provided
    on the Cover Page hereof (subject to accelerated settlement under Section
    4(a) or 4(d)). The Company will supply to Employee a form of such release
    agreement not later than the date of Employee's termination, which must be
    returned within the time period required by law and must not be revoked by
    Employee within any applicable revocation period such that the release becomes
legally effective (if no time period is specified by 

 

3

 

law, the return period shall be 14 days after receipt of the release but not earlier than the date of Termination). The Company, in determining the time of settlement under this Section 4(b), will not be influenced by Employee or the timing of any action by Employee including execution of such a release agreement and expiration of any revocation period.  In particular, the Company retains discretion to deposit shares hereunder in escrow at any time during such fixed period, so that such deposited amount is constructively received and taxable income to Employee upon deposit but with distribution from such escrow remaining subject to Employee's execution and non-revocation of such release agreement. If
    Employee has an Employment Agreement providing for payment of severance in
    the event of Termination for "Good Reason" as defined in such Employment
    Agreement, then for purposes of this Agreement a termination by Employee
    for Good Reason shall be treated as a Termination by the Company not for
Cause and not as a voluntary termination by Employee. 

 

(c)          Termination by the Company For Cause or Voluntarily by Executive.  In the event of Employee's Termination of Employment by the Company for Cause or Termination of Employment by Employee voluntarily (other than a Termination for Good Reason if such Termination would be governed by Section 4(b)), the portion of the then-outstanding RSUs not vested at the date of Termination will be forfeited (unless otherwise determined by the Committee), and the portion of the then-outstanding RSUs that are vested and non-forfeitable will be settled at the end of the Mandatory Restriction Period as provided on the Cover Page hereof (subject to accelerated settlement under Section 4(a) or 4(d)).

 

(d)         Change in Control.  Upon a Change in Control, vesting of RSUs shall occur as specified on the Cover Page hereof.  Because the RSUs constitute deferrals of compensation under Code Section 409A, the following rule will apply to the timing of settlement of such RSUs:  RSUs shall be settled immediately upon the occurrence of a 409A Change in Control but, if a Change in Control occurs but does not constitute a 409A Change in Control, the RSUs will be settled at the earliest date thereafter at which the RSUs otherwise are to be settled hereunder. 

 

(e)         Certain Definitions.  The following definitions apply for purposes of this Agreement:

 

(i)          "Cause” means "Cause" as defined in any Employment Agreement between the Company or a subsidiary of the Company and Employee in effect as of the Grant Date or explicitly made applicable to Employee's equity awards (an "Employment Agreement").  In the absence of such an applicable Employment Agreement provision, "Cause" shall
      mean (1) the failure by the Employee to perform the material duties
      of his or her position, including, by way of example and not of limitation,
      the failure or refusal to follow instructions reasonably given by his or
      her superiors in the course of employment; (2) fraud, dishonesty, gross
      negligence or the willful misconduct on the part of the Employee in the
      performance of his or her duties and responsibilities; (3) the Employee’s violation of federal, state or local securities laws, rules or regulations or violation of or failure to comply with the Company’s or its affiliates’ internal policies or the rules and regulations of the Financial Industry Regulatory Authority (“FINRA”) or any other federal, foreign or state regulatory agency having jurisdiction over the business conduct of the Employee as an employee of the Company or its affiliates; (4) the Employee’s failure to obtain or maintain any license or registration required to be maintained by the rules and regulations of FINRA, the Securities and Exchange Commission, or any other federal, foreign or state regulatory agency having jurisdiction over the business conduct of the Employee as an employee of the Company or its affiliates; or (5) the Employee’s conviction of a felony or crime involving moral turpitude; provided that any termination for Cause shall be effective as follows:  (a) immediately upon giving
the Employee written notice thereof stating the reason or reasons therefor with respect to clause (2) or (5) above, and (b) thirty (30) days after written notice thereof from the Company to the Employee specifying the acts or omissions constituting the “Cause” with
respect to clauses (1), (3) and (4) above, but only if the Employee has not cured such
thirty (30) day period.

 

4

 

 

(ii)          "409A Change in Control" means a Change in Control as defined in the Plan which constitutes or in connection with which there occurs an event constituting a change in the ownership of the Company, a change in effective control of the Company, or a change in the ownership of a substantial portion of the assets of the Company as defined in Treasury Regulation § 1.409A-3(i)(5).
    If a 409A Change in Control would have occurred but for the fact that a Change
    in Control has not yet occurred, the 409A Change in Control will be deemed
    to have occurred if the Change in Control occurs within 90 days after the
    409A Change in Control, but only if the occurrence of the Change in Control
    is non-discretionary and objectively determinable at the time of the 409A
    Change in Control (in this case, the Employee shall have no influence on
when during such 90-day period the settlement shall occur). 

 

(iii)         "Termination of Employment" means
    the event by which Employee has a separation from service from
the Company and its subsidiaries within the meaning of Treasury Regulation § 1.409A-1(h).

 

	
             
 	
            5.
 	
            Dividends and Adjustments.  
 

 

(a)         Dividend Equivalents.  Dividend Equivalents will be credited on RSUs (other than RSUs that, at the relevant record date, previously have been settled or forfeited) and deemed reinvested in additional RSUs.  Such crediting shall be as follows, except that the Company may vary the manner of crediting (for example, by crediting cash dividend equivalents rather than additional RSUs) for administrative convenience, subject to Section 9(a):

 

(i)           Cash Dividends.
    If the Company declares and pays a dividend or distribution on shares in
    the form of cash, then additional RSUs shall be credited to Employee’s Account in lieu of payment or crediting of cash dividend equivalents equal to the number of RSUs credited to Employee’s
    Account as of the relevant record date multiplied by the amount of cash paid
    per share in such dividend or distribution divided by the Fair Market Value
of a share at the payment date for such dividend or distribution.

 

(ii)          Non-Common Stock Dividends.
    If the Company declares and pays a non-cash dividend or distribution on shares
    in the form of property other than shares, then a number of additional RSUs
    shall be credited to Employee’s Account as of the payment date for such dividend or distribution equal to the number of RSUs credited to Employee’s
    Account as of the record date for such dividend or distribution multiplied
    by the fair market value of such property actually paid as a dividend or
    distribution on each outstanding share at such payment date, divided by the
Fair Market Value of a share at such payment date.

 

(iii)         Common Stock Dividends and Splits.
    If the Company declares and pays a dividend or distribution on shares in
    the form of additional shares, or there occurs a forward split of shares,
    then a number of additional RSUs shall be credited to Employee’s Account as of the payment date for such dividend or distribution or forward split equal to the number of RSUs credited to Employee’s
    Account as of the record date for such dividend or distribution or split
    multiplied by the number of additional shares actually paid as a dividend
or distribution or issued in such split in respect of each outstanding share.

 

(b)        Adjustments.
    The number of RSUs credited to Employee's Account and/or the property deliverable
    upon settlement of RSUs shall be appropriately adjusted (taking into account
    any Dividend Equivalents credited under Section 5(a)) in order to prevent
    dilution or enlargement of Employee's rights with respect to RSUs in connection
    with, or to reflect any changes in the number and kind of outstanding shares
    resulting from, any transaction that constitutes an "equity restructuring" as
defined under FASB ASC Topic 718.

 

5

 

(c)          Risk of Forfeiture and Settlement of Dividend Equivalents and RSUs Resulting from Adjustments.   RSUs, cash and other property deliverable in settlement of RSUs which directly or indirectly result from the crediting of Dividend Equivalents under Section 5(a) or adjustments to RSUs under Section 5(b) shall be subject to the same risk of forfeiture (including additional forfeiture terms of Section 7 below) as applies to the original granted RSU and will be settled at the same time as such original granted RSU.

 

	
             
 	
            6.
 	
            Settlement.  
 

 

 (a)        Generally.
      Because the RSUs constitute a deferral of compensation subject to Code
      Section 409A, settlement of such RSUs may not be accelerated in the discretion
      of the Company except to the extent permitted under Treasury Regulation § 1.409A-3 (accelerated vesting of all RSUs is permissible, however).  In any case in which a period is specified for delivery of shares following an applicable settlement date, if such period spans more than one calendar year, the determination as to the year in which shares will be delivered in settlement shall be made solely by the Company without any influence whatsoever by the Employee in such determination.  Other provisions of this Agreement notwithstanding, under U.S. federal income tax laws
and Treasury Regulations (and other applicable guidance) as presently in effect or hereafter implemented: (i) if the timing of any distribution in settlement of RSUs would result in Employee’s
constructive receipt of income relating to the RSUs prior to such distribution,
the date of distribution will be the earliest date after the specified date of
distribution that distribution can be effected without resulting in such constructive
receipt; and (ii) any rights of Employee or retained authority of the Company
with respect to RSUs hereunder shall be automatically modified and limited to
the extent necessary so that Employee will not be deemed to be in constructive
receipt of income relating to the RSUs prior to the distribution and so that
Employee shall not be subject to any penalty under Section 409A. 

 

 (b)        The Six-Month Delay Rule.  In furtherance of Section 6(a), the six-month delay rule will apply to RSUs if the following four conditions are met:

	
             
 	
            •
 	
            Employee has a Termination of Employment;
 

	
             
 	
            •
 	
            A settlement of the RSUs is triggered by the Termination (but not due to death); 
 

	
             
 	
            •
 	
            Employee
                is a “key employee” (as defined in Code Section 416(i) without regard to paragraph (5) thereof).  The Company will determine status of “key employees” annually,
                under administrative procedures applicable to all Section 409A
            plans; and 
 

	
             
 	
            •
 	
            The
                Company’s stock is publicly traded on an established securities
            market or otherwise.
 

If it applies, the six-month delay rule will delay a settlement of such RSUs triggered by the Termination of Employment where the settlement otherwise would be within six months after the Termination: 

	
             
 	
            •
 	
            Any delayed settlement shall be made on the date six months after Termination of Employment;
 

	
             
 	
            •
 	
            During
                the six-month delay period, accelerated settlement will be permitted
                in the event of the participant’s death and for no other
                reason (including no acceleration upon a Change in Control);
            and
 

	
             
 	
            •
 	
            Any settlement that is not triggered by a Termination of Employment, or is triggered by a Termination of Employment but would be made more than six months after the Termination (without applying this six-month delay rule), shall be unaffected by the six-month delay rule.
 

 

7.           Employee Representations and Warranties Upon Settlement.  As a condition to the settlement of the RSUs, the Company may require Employee to make any representation or warranty to the Company as may be required under any applicable law or regulation, provided that the Company shall give notice to Employee of such requirement no later than the applicable settlement date and Employee must
    respond within ten business days of receipt of such notice (or any earlier
    date as may be required in order to remain in compliance with Code Section
409A) in order to satisfy this condition. 

 

6

 

 

	
             
 	
            8.
 	
            Other Terms Relating to RSUs.  
 

 

(a)         Fractional RSUs and Shares.  The number of RSUs credited to Employee's Account shall include fractional RSUs, if any, calculated to at least three decimal places, unless otherwise determined by the Committee.  Unless settlement is effected through a third-party broker or agent that can accommodate fractional shares (without requiring issuance of a fractional share by the Company), upon settlement of the RSUs Employee shall be paid, in cash, an amount equal to the value of any fractional share that would have otherwise been deliverable in settlement of such RSUs. 

 

(b)         Mandatory Tax Withholding.  Unless otherwise determined by the Committee, at the time of settlement the Company will withhold from any shares deliverable in settlement of the RSUs, in accordance with Section 11(d)(i) of the Plan, the number of shares having a value equal to the amount of income taxes, employment taxes or other withholding amounts required to be withheld under applicable local laws and regulations, and pay the amount of such withholding taxes in cash to the appropriate taxing authorities.  Fractional shares will not be withheld, but the Company will make reasonable arrangements regarding such fractional shares with a view to complying with requirements under FASB ASC Topic 718 to avoid recognition of expense.  Employee will be responsible for any taxes relating to the RSUs
not satisfied by means of such mandatory withholding.  Please note that, upon the lapse of the risk of forfeiture relating to RSUs for which settlement is delayed, the Company is required to withhold from Employee Social Security and Medicare taxes (FICA) at the applicable minimum statutory rate at such time, even though the RSUs will not be settled until the end of the Mandatory Restriction Period or other applicable settlement date.  Such withholding will be based upon the aggregate Fair Market Value of the shares underlying the RSUs at the applicable date, and will be required to be paid by Employee separately at that time or deducted from Employee's salary in the payroll period that immediately follows the applicable tax date.

 

(c)          Employee Consent.  By
    signing this Agreement, Employee voluntarily acknowledges and consents to
    the collection, use processing and transfer of personal data as described
    in this Section 8(c). Employee is not obliged to consent to such collection,
    use, processing and transfer of personal data; however, failure to provide
    the consent may affect Employee's ability to participate in the Plan. The
    Company and its subsidiaries hold, for the purpose of managing and administering
    the Plan, certain personal information about Employee, including Employee's
    name, home address and telephone number, date of birth, social security number
    or other employee identification number, salary, nationality, job title,
    any shares of stock or directorships held in the Company, and details of
    all options or any other entitlement to shares of stock awarded, canceled,
    purchased, vested, unvested or outstanding in Employee's favor ("Data").  The Company and/or its subsidiaries will transfer Data among themselves as necessary for the purpose of implementation, administration and management of Employee’s
    participation in the Plan and the Company and/or any of its subsidiaries
    may each further transfer Data to any third parties assisting the Company
    in the implementation, administration and management of the Plan. These recipients
    may be located in the European Economic Area, or elsewhere throughout the
    world, such as the United States. Employee authorizes them to receive, possess,
    use, retain and transfer the Data, in electronic or other form, for the purposes
    of implementing, administering and managing Employee's participation in the
    Plan, including any requisite transfer of such Data as may be required for
    the administration of the Plan and/or the subsequent holding of shares on
    Employee's behalf to a broker or other third party with whom Employee may
    elect to deposit any shares acquired pursuant to the Plan. Employee may,
    at any time, review Data, require any necessary amendments to it or withdraw
    the consents herein in writing by contacting the Company; however, withdrawing
consent may affect Employee's ability to participate in the Plan.

 

	
             
 	
             
 	
             
 

 

7

 

(d)         Voluntary
Participation. Employee's participation in the Plan is voluntary. The value
of the RSUs is an extraordinary item of compensation. Unless otherwise expressly
provided in Employee's Employment Agreement, the RSUs are not part of normal
or expected compensation for purposes of calculating any severance, resignation,
redundancy, end of service payments, bonuses, long-service awards, pension or
retirement benefits or similar payments, and, therefore, the awarding of RSUs
to Employee under the Plan represents a mere investment opportunity.

 

(e)         Consent to Electronic Delivery. EMPLOYEE
    HEREBY CONSENTS TO ELECTRONIC DELIVERY OF THE PLAN, THE PROSPECTUS FOR THE
    PLAN AND OTHER DOCUMENTS RELATED TO THE PLAN (COLLECTIVELY, THE “PLAN DOCUMENTS”).  THE COMPANY WILL DELIVER THE PLAN DOCUMENTS ELECTRONICALLY TO EMPLOYEE BY E-MAIL, BY POSTING SUCH DOCUMENTS ON ITS INTRANET WEBSITE OR BY ANOTHER MODE OF ELECTRONIC DELIVERY AS DETERMINED BY THE COMPANY IN ITS SOLE DISCRETION.  THE COMPANY WILL SEND TO EMPLOYEE AN E-MAIL ANNOUNCEMENT WHEN A NEW PLAN DOCUMENT IS AVAILABLE ELECTRONICALLY FOR EMPLOYEE’S REVIEW, DOWNLOAD OR PRINTING AND WILL PROVIDE INSTRUCTIONS ON WHERE THE PLAN DOCUMENT CAN BE FOUND.  UNLESS OTHERWISE SPECIFIED IN WRITING BY THE COMPANY, EMPLOYEE WILL NOT INCUR ANY COSTS FOR RECEIVING THE PLAN DOCUMENTS
ELECTRONICALLY THROUGH THE COMPANY’S COMPUTER NETWORK.  EMPLOYEE WILL HAVE THE RIGHT TO RECEIVE PAPER COPIES OF ANY PLAN DOCUMENT BY SENDING A WRITTEN REQUEST FOR A PAPER COPY TO THE ADDRESS SPECIFIED IN SECTION 9(e) HEREOF.  EMPLOYEE’S CONSENT TO ELECTRONIC DELIVERY OF THE PLAN DOCUMENTS WILL BE VALID AND REMAIN EFFECTIVE UNTIL THE EARLIER OF (I) THE TERMINATION OF EMPLOYEE’S PARTICIPATION IN THE PLAN AND (II) THE WITHDRAWAL OF EMPLOYEE’S
CONSENT TO ELECTRONIC DELIVERY OF THE PLAN DOCUMENTS. THE COMPANY ACKNOWLEDGES
AND AGREES THAT EMPLOYEE HAS THE RIGHT AT ANY TIME TO WITHDRAW HIS OR HER CONSENT
TO ELECTRONIC DELIVERY OF THE PLAN DOCUMENTS BY SENDING A WRITTEN NOTICE OF WITHDRAWAL
TO THE ADDRESS SPECIFIED IN SECTION 9(e) HEREOF. IF EMPLOYEE WITHDRAWS HIS OR
HER CONSENT TO ELECTRONIC DELIVERY, THE COMPANY WILL RESUME SENDING PAPER COPIES
OF THE PLAN DOCUMENTS WITHIN TEN (10) BUSINESS DAYS OF ITS RECEIPT OF THE WITHDRAWAL
NOTICE. EMPLOYEE ACKNOWLEDGES THAT HE OR SHE IS ABLE TO ACCESS, VIEW AND RETAIN
AN E-MAIL ANNOUNCEMENT INFORMING EMPLOYEE THAT THE PLAN DOCUMENTS ARE AVAILABLE
IN EITHER HTML, PDF OR SUCH OTHER FORMAT AS THE COMPANY DETERMINES IN ITS SOLE
DISCRETION. 

 

	
             
 	
            9.
 	
            Miscellaneous.
 

 

(a)         Binding Agreement; Written Amendments.  This Agreement shall be binding upon the heirs, executors, administrators and successors of the parties.  This Agreement constitutes the entire agreement between the parties with respect to the RSUs, and supersedes any prior agreements or documents with respect thereto.  No amendment or alteration of this Agreement which may impose any additional obligation upon the Company shall be valid unless expressed in a written instrument duly executed in the name of the Company, and no amendment, alteration, suspension or termination of this Agreement which may materially impair the rights of Employee with respect to the RSUs shall be valid unless expressed in a written instrument executed by Employee.

 

(b)         No Promise of Employment.  The RSUs and the granting thereof shall not constitute or be evidence of any agreement or understanding, express or implied, that Employee has a right to continue as an officer or employee of the Company for any period of time, or at any particular rate of compensation.  Employee acknowledges and agrees that the Plan is discretionary in nature and limited in duration, and may be amended, cancelled, or terminated by the Company, in its sole discretion, at any time, provided, however that any outstanding RSUs shall not be materially and adversely affected.  The grant of RSUs under the Plan is a one-time 

 

8

 

benefit and does not create any contractual or other right to receive a grant of restricted stock units or other equity awards or benefits in lieu of units or other equity awards in the future.  Future grants, if any, will be at the sole discretion of the Company, including, but not limited to, the timing of any grant, the number of units or other awards and vesting provisions.

 

(c)          Unfunded Plan.  Any provision for distribution in settlement of Employee's Account hereunder shall be by means of bookkeeping entries on the books of the Company and shall not create in Employee any right to, or claim against any, specific assets of the Company, nor result in the creation of any trust or escrow account for Employee.  With respect to Employee's entitlement to any distribution hereunder, Employee shall be a general creditor of the Company. 

 

(d)         Governing Law.
    THE VALIDITY, CONSTRUCTION, AND EFFECT OF THIS AGREEMENT SHALL BE DETERMINED
    IN ACCORDANCE WITH THE DELAWARE GENERAL CORPORATION LAW AND OTHERWISE IN
    ACCORDANCE WITH THE LAWS (INCLUDING THOSE GOVERNING CONTRACTS) OF THE STATE
    OF NEW YORK, WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF LAWS, AND
    APPLICABLE FEDERAL LAW. The RSUs and the granting thereof are subject to
    the Employee’s compliance with the applicable law of the jurisdiction of Employee’s
employment.

 

(e)         Notices.  Any notice to be given the Company under this Agreement shall be addressed to the Company at 1251 Avenue of the Americas, 20th Floor,
    New York, NY 10020 attention: General Counsel, and any notice to the Employee
    shall be addressed to the Employee at Employee’s address as then appearing
in the records of the Company.

 

 

9

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