Document:

Exhibit 10.5

 

THIS AGREEMENT is made this 1st May day of 2002

 

BETWEEN:

 

(1)                                  GFI HOLDINGS LIMITED (“the Company”) of GFI House, 9 Hewett
Street, London EC2A 3RP; and

 

(2)                                  STEVE McMILLAN (“the Employee”) of Flat 20, Springalls
Wharf, 25 Bermondsey Wall West, London SE16 4TL.

 

1                                          Definitions

 

1.1                                 In this Agreement unless the context
otherwise requires:

 

1.1.1                        “Associated Company” means a Company which is or was from time to
time a subsidiary or holding company of the Company or a subsidiary (other than
the Company) of a holding company of the Company.  For the avoidance of doubt, a holding company is as defined in
section 736 Companies Act 1985 and a subsidiary company is as defined by
section 736 Companies Act 1985.

 

1.1.2                        “Board” means the board of directors from time to
time of the Company or duly appointed sub-committee of the said Board;

 

1.1.3                        “Commencement Date” means the date the Employee commences
Employment pursuant to the terms of this Agreement;

 

1.1.4                        “Employment” means the employment of the Employee by the
Company under the terms of this Agreement;

 

1.1.5                        “Intellectual Property” includes letters, patents, trademarks
whether registered or unregistered, designs, utilities, models, processes,
copyright including design copyrights, applications for any of the foregoing
and the right to apply for them in any part of the world, discoveries,
creations, inventions or improvements upon or additions to any invention,
database rights, Confidential Information, know-how and research effort
relating to any of the above mentioned, moral rights and any similar rights in
any country.

 

1.2                                 The headings and marginal headings to the
clauses are for convenience only and have no legal effect.

 

1

 

1.3                                 Words denoting the singular include the
plural and vice versa; words denoting one gender include all genders; words
denoting persons include companies, all other similar types of organisation,
corporations, unincorporated associations and partnerships.

 

1.4                                 All references to statutory provisions or
enactments shall include references to any consolidating legislation involving
the provisions, enactments and regulations referred to and any amendment,
modification or re-enactment of any such provision or enactment (whether on or
before the date of this Agreement), to any previous enactment which has been
replaced or amended, and to any regulation or order made under such provision
or enactment.

 

2                                          Introduction

 

2.1                                 This Agreement includes those particulars of
your Appointment which are required to be given to you under the ERA, as
amended.  This Agreement is supplemented
by the GFI Company Handbook (“the Handbook”). 
A copy of the Handbook shall be provided to you by the Company.  Should there be any inconsistency between
this agreement and the contents of the Handbook, the terms of this Agreement
shall prevail.

 

3                                          Appointment
and Duties of the Employee

 

3.1                                 The Company appoints the Employee and the
Employee agrees to serve the Company as Chief Operating Officer GFI Group or in
such other capacity as may be required by the Board from time to time.  The Employee may be required to perform
additional duties according to operational and management requirements.

 

3.2                                 The Employee’s Employment under this
Agreement shall be deemed to have commenced on the February 28 2000 (the
“Commencement Date”) and to have continued thereafter, subject to earlier
termination pursuant to clause 13 for a period of two years, terminating on the
second anniversary of the Commencement Date (“the Initial Period”).  The Initial Period will be extended
automatically for successive periods of one year (“the Renewal Period”) on the
same terms and conditions as contained in this Agreement unless either party
gives to the other three months’ prior notice of termination in writing to
expire at the end of the Initial Period or to expire at the end of a Renewal
Period.

 

3.3                                 Once notice to terminate the Employees
Employment has been given either by the Employee or the Company or if the
Employee seeks to terminate his Employment

 

2

 

hereunder in breach of contract the Company shall be under no
obligation to vest in or assign to the Employee any powers or duties or to
provide any work for the Employee and may exclude the Employee from any
premises of the Company provided always that salary and all other contractual
benefits do not cease to be payable or provided by reason only of the Company
exercising its rights pursuant to this clause. 
In addition, the Company may require the Employee to resign from any
directorship or other office he may hold with the Company or any Associated
Company and upon being so required the Employee shall be deemed simultaneously
to submit his resignation and shall have no claim or right of action against
the Company for compensation, damages or otherwise in respect of such
resignation save that this provision shall not otherwise prejudice any of his
rights in respect of the termination of this agreement or of his Employment.

 

3.4                                 The Employee shall during normal working
hours and such additional hours as are necessary for the proper performance of
his duties:

 

3.4.1                        devote the whole of his time and attention
and the full benefit of his knowledge, expertise, skills and ability in the
proper performance of his duties (unless on holiday as permitted by this
Agreement or prevented by ill-health or accident);

 

3.4.2                        faithfully and diligently perform those duties and exercise such powers
consistent with them which are from time to time assigned to or vested in the
Employee;

 

3.4.3                        obey all lawful and reasonable directions
given to the Employee by or under the authority of the Board, and save as
inconsistent with the express terms of this Agreement, all applicable rules and
regulations from time to time laid down by the Company concerning its
employees;

 

3.4.4                        at all times use his best endeavours to
promote and protect the interests and welfare and to maintain the goodwill of
the Company and any Associated Company and not do and to exercise all
reasonable endeavours to prevent there being done anything that is or may be
prejudicial or detrimental to the Company or any Associated Company;

 

3.4.5                        except with the prior written approval of the
Board shall not during his employment by the Company be directly or indirectly
engaged or concerned or interested in any other trade or business or the
setting-up of any business save as a holder of the legal or equitable interest
in the shares or securities of a company any of whose shares or securities are
quoted or dealt with on any recognised Stock Exchange

 

3

 

provided that any such holding shall not exceed three percent of the
whole or any class of the issued share capital of the company concerned;

 

3.4.6                        keep the Board promptly and fully informed
(in writing if so requested) of his conduct of the business or affairs of the
Company and/or any Associated Company and provide such explanations in respect
of all matters as the Company may reasonably require;

 

3.4.7                        not at any time make any untrue or misleading
statement relating to the Company or any Associated Company or omit to bring to
the Company’s attention any matter relevant to or that in any material way may
affect the business or commercial operation of the Company or any Associated
Company.  Further, the Employee shall
promptly disclose to the Board any information which comes into his possession
or attention which affects adversely or may effect adversely the Company or any
Associated Company or the business of the Company or any Associated
Company.  Such information shall include
but not be limited to the plans of any employee to leave the Company or any
Associated Company (whether alone or in concert with other employees) the plans
of any employee (whether alone or in concert with other employees) to join a
competitor or to establish a business in competition with the Company or any
Associated Company, any steps taken by an employee to implement either of such
plans and the misuse by any employee of any confidential information belonging
to the Company or any Associated Company;

 

3.4.8                        for the avoidance of doubt, the Employee
will, if required by the Company, carry out duties for and/or act in a capacity
as an employee for any Associated Company.

 

3.5                                 The Board may require the Employee to perform
services for any Associated Company wherever situated and without further fees
or remuneration, and to enter into any separate agreement or agreements with
such Associated Company for such purpose, and any duties that the Employee may
have under this Agreement will be deemed to extend to such Associated Company.

 

3.6                                 The Employee agrees that he will not offer to
any third party or accept any benefit whether financial or in kind from any
other party (other than his proper remuneration from the Company) and the
Employee agrees that he will not accept or offer gifts or hospitality other
than by way of a token nature from any person or business with whom he is
involved on the Company’s business.

 

4

 

3.7                                 The Employee’s job description may from time
to time be amended by the Company and in addition to the duties set out above,
the Employee may from time to time be required to undertake additional or other
duties, consistent with the Employee’s status and seniority, as necessary to
meet the needs of the business of the Company.

 

3.8                                 The Employee shall not publish any
literature, deliver any lecture or make any communication to the Press,
broadcasting or other media relating to the business of the Group without the
approval of the Board but should such prior approval be granted copyright in
any such publication or lecture notes will belong absolutely to the Company

 

4                                          Conduct

 

As Chief Operating Officer GFI Group, the Employee is an ambassador of
the Company and any Associated Companies and whilst on Company business the
Employee will conduct himself in a professional and ethical manner and in a
manner that may or may be likely to credit the Company and any Associated
Company’s business and reputation

 

5

 

5                                          Place and Hours of Work

 

5.1                                 The Employee’s normal place of work will be
at the Company’s offices at GFI House 9 Hewett Street, London EC2A 3RP or such
other location as the Company may from time to time reasonably require within
the United Kingdom or abroad for the purpose of business visits.

 

5.2                                 In addition the Employee must be willing to
travel and work overseas, staying away for periods of up to several weeks
duration, upon reasonable notice.  If
the Employee is required to work outside the United Kingdom for a period
exceeding one month, the Employee will be notified in advance of any additional
terms affecting his Employment.

 

5.3                                 The Employee’s normal hours of work are
between 9:00am and 5:30pm, Monday to Friday plus such additional hours as may
be necessary for the proper performance of his duties.  The Employee will not be entitled to any
further remuneration for such additional hours worked.

 

6                                          Compensation and Bonus

 

6.1                                 During the Employee’s Employment with the
Company and subject to the Employee complying with his obligations and duties
under this Agreement, the Company shall pay to the Employee a salary at the
rate of $630,121.00, per annum which shall accrue from day-to-day and be payable
by bank credit transfer in equal monthly instalments in accordance with the
Company’s standard payroll practices from time to time.  The salary shall be deemed to include any
fees receivable by the Employee as a Director of the Company, any Associated Company
or of any other company or unincorporated body in which the Employee holds
office as nominee or representative of the Company or any Associated Company.

 

6.2                                 The Company paid to the Employee a sign-on
bonus in the sum $800,000 (the Signing Bonus). 
The Signing Bonus was deemed to be earned pro-rata at the rate of
$100,000 for each three month period of the Initial Period and a sum equal to
the unearned portion of the Signing Bonus was to be immediately repaid by the
Employee to the Company, should the Employee seek to terminate his Employment
or should this Agreement be terminated for gross misconduct in accordance with
clause 15, at any time during the Initial Period.

 

6

 

6.3                                 The Employee has received 500,000 stock
options (the “Options”) of the common stock of GFInet Inc, projected as $1.00
call options, at the date on which the Employee received them.  The options will vest and issue in
accordance with all operative agreements and plans, Including the GFInet Inc.
2000 Stock Option Plan (the “Additional Bonus”);

 

6.4                                 The Employee shall also be entitled to
receive:

 

6.4.1                        $3,500 per month living allowance payable for
only those months that the Employee is required by the Company to work outside
of London, England;

 

6.4.2                        With effect from 1 May 2002, the sum of
£18,500 per annum which shall be paid into the GFI Group Executive Pension
Scheme by the Company

 

6.4.3                        In addition the Employee may also be eligible
to receive an additional discretionary bonus the payment of and the amount of
any such bonus to be at the absolute discretion of the Company.  To be eligible to receive a bonus the
Employee must be employed by the Company at the date of payment and not be
under notice of termination of employment or in fundamental breach of contract.

 

6.4.4                        On termination of the Employee’s Employment,
the Company reserves the right to deduct from any sums payable to the Employee
on such termination any monies which are owed by the Employee to the Company or
to any Associated Company.

 

7                                          Other Benefits

 

7.1                                 The Employee shall be eligible to receive
during his Employment such benefits that the Company puts in place for other
employees at the Employee’s level of seniority, provided that this shall not
require the Company to adopt and maintain any particular plan or policy.

 

8                                          Expenses

 

8.1                                 The Company will reimburse the Employee in
accordance with its standard policy in respect of all reasonable out-of-pocket
expenses properly Incurred by the Employee in the performance of his
duties.  This is subject to the Employee
providing such vouchers or other evidence of actual payment of the expenses as
the Company may reasonably require.

 

7

 

9                                          Holiday

 

9.1                                 The Company’s holiday year runs from 1
January to 31 December.

 

9.2                                 In addition to UK public and bank holidays,
the Employee is entitled to 20 working days’ paid holiday in each holiday year
to be taken at such time or times as may be agreed with the Board.  The Employee is not permitted, without the
prior written consent of the Board, to carry forward any unused part of his
holiday entitlement to a subsequent holiday year and any such unused holiday
will be forfeited without payment in lieu.

 

9.3                                 On the termination of the Employee’s Employment
for whatever reason, the Employee shall either be entitled to pay in lieu of
outstanding holiday entitlement or be required to repay to the Company (or the
Company shall be entitled to make a deduction from the Employee’s remuneration
and by executing this Agreement the Employee consents to any such deduction)
any salary received for holiday taken in excess of his actual entitlement.  The basis for payment and repayment shall be
in the case of accrued holiday entitlement;

 

9.4                                 1.67 days’ holiday for each completed
calendar month of service; or

 

9.4.1                        in the case of payment in lieu, or deduction,
1/265 of the Employee’s annual salary for each day’s holiday not taken, or
taken in excess of the accrued entitlement.

 

10                                    Sickness

 

10.1                           If the Employee is absent from the office
because of illness, injury or other circumstances, he shall notify the Company
of the reason for his absence no later than 10.00am on the first day of such
absence, giving a full explanation of the reasons for his absence.  If the Employee for any reason is unable to
make personal contact with the Company (for example because he is too unwell),
he should ensure that somebody contacts the Company on his behalf.

 

10.2                           If the Employee returns to work after such a
period of absence of seven days or less, he must complete a self-certification
form before midday on the first day back at work which will be retained in the
Company’s records.  If the Employee is
absent for more than seven consecutive days, he shall provide a medical
practitioner’s certificate on the eighth day and weekly thereafter so that his
whole period of absence is certified by such certificates.

 

8

 

10.3                           Upon completion of six months continuous
employment with the Company if the Employee is absent due to sickness or injury
duly certified in accordance with the provisions of this clause 10 at the
discretion of the Company he shall be paid his full salary for up to two months
absence and thereafter half his full salary for a further two months in any
sick pay year which runs from 1 January to 31 December.  Any further entitlement shall be to
statutory sick pay only.  Any
remuneration paid during such absence shall be inclusive of any Statutory Sick
Pay to which the Employee is entitled and any Social Security Sickness Benefit
or other benefits recoverable by the Employee (whether or not recovered) may be
deducted there from.

 

10.4                           The
Employee agrees that he will at the expense of the Company and if directed to
do so at any time undergo a medical examination by a medical practitioner
nominated by the Company and that the Company shall be entitled to be supplied
with and retain a copy of any medical report, diagnosis or prognosis made or
produced in relation to any such medical examination and to discuss the same
with the practitioner who produced such report, diagnosis or prognosis.

 

10.5                           The
Company reserves the right to cease payment of any salary or statutory sick pay
during any period of sickness absence if the Employee fails to comply with the
notification requirements set out in this clause 10.

 

10.6                           If
the Employee is absent from work by reason of injury sustained wholly or partly
as a result of actionable negligence, nuisance or breach of any statutory duty
on the part of any third party other than any subsidiary or associate of the
Company the Company in its discretion may require the Employee to take all
reasonable steps to recover compensation including repayment of all sums paid
to him by the Company under this clause in respect of such absence.  Any such sum shall in turn be repaid by the
Employee when and to the extent that he recovers compensation for loss of
earnings from that third party by action or otherwise less any reasonable costs
incurred in recovering any such compensation.

 

10.7                           The
Company reserves the right to terminate the Employee’s employment without
notice or payment in lieu of notice if the Employee is absent from work due to
sickness or injury for a period of 26 consecutive weeks or 150 days in any calendar
year.

 

9

 

11                                    Protective Covenants

 

11.1                           The Company and the Employee acknowledge and
agree that, as part of the Employee’s Employment under this Agreement and as a
necessary part of carrying out and fulfilling his duties, the Employee will
have full use of and access to persons, business relationships and connections,
clients and client connections, Confidential Information and other matters that
form part of the legitimate business interests of the Company and in which the
Company makes a significant and continuing investment.  The purpose of the Protective Covenants set
out in this clause is to protect the Company’s legitimate business interests
and will only be invoked if the Employer has a reasonable belief that those
legitimate business interests are threatened or may be threatened by actions of
the Employee.

 

11.2                           For the purposes of this clause 11 “Relevant Period” means the period of 12
months preceding the date on which the Employee’s Employment terminates; “Restricted Area” means the location of any
of the financial markets or exchanges in any country which the Company covers,
operates or conducts business in, or plans to operate or conduct business in,
at the date on which the Employees employment is terminated, or during the
twelve month period thereafter, including but not limited to the metropolitan
areas of New York, London, Sydney, Singapore, Hong Kong and such other areas in
which the Employee rendered services and/or acted on behalf of the Company in
the Relevant Period; “Relevant Employee”
means any employee of the Company or any Associated Company with whom the
Employee had material dealings in the performance of his duties at any time
during the Relevant Period including but not limited to brokers, broking
managers, directors, senior support staff (IT, Product, Middle and Back Office)
and consultants, but subject to this provision not applying to staff employed
in a secretarial or clerical capacity only and “Company” includes any Associated Company for whom the
Employee rendered serviced and/or worked during his Employment with the
Company.

 

11.3                           For a period of six months following the date
on which the Employee’s Employment terminates, the Employee shall not within
the Restricted Area, without the prior written consent of the Company, directly
or indirectly, own, operate, manage, control participate in, consult with,
render services to, be employed by or assist in any way any person, firm,
company or organisation engaged in the provision of services similar to and in
competition with the services provided by the

 

10

 

Company during the Relevant Period and in which the Employee was
actively involved at any time during the Relevant Period.

 

11.4                           For a period of twelve months following the
date on which the Employee’s Employment terminates the Employee shall not,
alone or with others, whether directly or indirectly, and whether for the
benefit of the Employee or any person other than the Company:

 

11.4.1                  canvass or solicit or entice away business,
orders or custom relating to services similar to and competitive with those
provided by the Company and in which the Employee was actively involved from
any person who at the date of termination of the Employee’s Employment and/or
at any time during the Relevant Period is a client or customer of the Company
and with whom or with whose business the Employee was actively engaged or
concerned;

 

11.4.2                  deal with or transact business with in
relation to or in connection with services similar to and competitive with
those provided by the Company and in which the Employee was actively involved
from any person who, at the date of termination of the Employee’s Employment
and/or at any time during the Relevant Period is a client or customer or
counterparty of the Company with whom or with whose business the Employee was
actively engaged or concerned;

 

11.4.3                  interfere or seek to interfere with the
continuance of supplies from any supplier to the Company with whom the Employee
shall have had material dealings during the Relevant Period

 

11.4.4                  solicit, induce, encourage, attempt to
solicit, induce or encourage (whether directly or indirectly) any Relevant
Employee to terminate his employment with or otherwise cease his relationship
with the Company and similarly will not, whether directly or indirectly,
employ, engage or offer employment to or an engagement to any such person.

 

11.5                           In the event that the Company exercises its
right under clause 3.3 then each of the periods referred to in clauses 11.3 and
11.4 shall be reduced by any period spent by the Employee on garden leave
pursuant to clause 3.3.

 

11.6                           The Employee agrees that each of the
restrictions set out in this clause 11 is an entirely separate, severable and independent
restriction.

 

11

 

11.7                           The Employee agrees that the restrictions
contained in this clause 9 are reasonable, but in the event that any such
restrictions shall be found to be void, but would be valid if some part was
deleted, or the period or periods reduced, such restrictions shall apply with
such modification as may be necessary to make it valid and effective

 

11.8                           The Employee will show a copy of this
Agreement including these Protective Covenants to any future employer
immediately upon any offer or assurance of employment being made (whether oral
or in writing) where the Employee Is to commence employment with such Employer
before the expiration of six months following the termination of the Employee’s
Employment under this Agreement.

 

11.9                           The Company reserves the right to send any
prospective employer of the Employee a copy of this Agreement to put such
prospective employer on notice that the Employee is subject to the Protective
Covenants set out above.

 

11.10                     If, during his employment with the Company,
the Employee receives any offer or assurance of employment from a third party,
whether oral or in writing, the Employee will disclose the fact of that offer
or assurance to the Company immediately it is made and/or received.

 

11.11                     The Employee confirms and agrees that he has
had sufficient time to consider and has received independent legal advice in
respect of the effect of and potential liability attaching to the Protective
Covenants and obligations contained in this Clause 11.

 

12                                    Confidential Information

 

12.1                           The Employee acknowledges that, in the course
of and as part of his Employment, he will obtain, have access to and use
information belonging to the Company that is highly confidential and critical
to the Company’s present and future commercial interests and continued
operation.  The Employee agrees and
acknowledges that all such information and knowledge, whether or not in
writing, concerning the Company and/or any Associated Company and/or its or
their clients or the business or financial affairs of the Company and/or any
Associated Company or its or their clients is the exclusive property of the
Company.  For the purposes of this
Agreement, such information is “Confidential Information”.  Confidential Information includes but is not
limited to:-

 

12

 

12.1.1                  business operations, plans, strategies,
portfolio, prospects or objectives of the Company, any Associated Company or
any of their respective clients;

 

12.1.2                  structure, products, product development,
technology, distribution, sales, services, support and marketing plans,
practices and operations of the Company or any Associated Company;

 

12.1.3                  the prices, costs and financial records, details
or statements of the Company any Associated Company;

 

12.1.4                  research and development, new products,
licenses, operations or plans of the Company or any Associated Company;

 

12.1.5                  trade secrets, proprietary information and
Intellectual Property of the Company or any Associated Company;

 

12.1.6                  clients and client lists (including without
limitation, the identities or clients, names, addresses, contacts and the
clients’ business status or needs) of the Company and/or any Associated
Company; and

 

12.1.7                  confidential information regarding the skill,
compensation and benefits of other employees of the Company or any Associated
Company

 

12.2                           Either during or after his Employment the
Employee will not disclose any Confidential Information to any third party or
use the same for any purpose other than carrying out the terms of the
Employee’s Employment unless and until such Confidential Information is or has
become public knowledge (unless this occurs through a breach of this Agreement
or any other unlawful act by the Employee), provided that the Employee will not
be precluded from disclosing Confidential Information to the extent he is
required to do so by law or court order, provided that the Employee shall use
all reasonable endeavours to give the Company prior notice of any such
disclosure and shall limit such disclosure to that which is legally required.

 

12.3                           The Employee agrees that his obligation not
to disclose or use Confidential Information also extends to Confidential
Information belonging to clients/customers of the Company or suppliers to the
Company or other third parties who may have disclosed or entrusted the same to
the Company or to the Employee in the course of the Company’s business.

 

13

 

13.                                 Intellectual
Property

 

13.1                           The
Company and the Employee agree that the Employee may make, discover or create Intellectual Property in the course of
his duties under this agreement and agree that in this respect the Employee has
a special obligation to further the interests of the Company.

 

13.2                           Subject
to the provisions of the Patents Act 1977, the Registered Designs Act 1949 and
the Copyright Designs and Patents Act 1988, if at any time during his
Employment the Employee makes or discovers or participates in the making or
discovery of any Intellectual Property relating to or capable of being used in
the business for the time being carried on by the Company full details of the
Intellectual Property shall immediately be communicated by the Employee to the
Company and shall be the absolute property of the Company.  At the request and expense of the Company
the Employee shall give and supply all such information, data, drawings and
assistance as may be requisite to enable the Company to exploit the
Intellectual Property to the best advantage and shall execute all documents and
do all things which may be necessary or desirable for obtaining patent or other
protection for the Intellectual Property in such parts of the world as may be
specified by the Company and for vesting the same in the Company or as it may
direct.

 

13.3                           The
Employee irrevocably appoints the Company to be his agent in his name and on
his behalf to sign, execute or do any such instrument or thing and generally to
use his name for the purpose of giving to the Company (or its nominee) the full
benefit of the provisions of this clause and in favour of any further party a
certificate in writing signed by any director or the secretary of the Company
that any instrument or act falls within the authority conferred by this clause
shall be conclusive evidence that such is the case.

 

13.4                           If
the Intellectual Property is not the property of the Company the Company shall
subject to the provisions of the Patents Act 1977 have the right to acquire for
itself or its nominee the Employee’s rights in the Intellectual Property within
three months after disclosure pursuant to this clause on fair and reasonable
terms to be agreed or settled by a single arbitrator.

 

13.5                           The
Employee waives all of his moral rights (as defined in the Copyright Designs
and Patents Act 1988) in respect of any acts of the Company or any acts of
third

 

14

 

parties done with the Company’s authority in relation to any
Intellectual Property which is the property of the Company by virtue of this
clause.

 

13.6                           Rights and obligations under this clause
shall continue in force after termination of this agreement in respect of
Intellectual Property made during the Employee’s Employment under this
Agreement and shall be binding on his representatives.

 

14                                    Return of Company Property

 

At any time at the request of the Company and in any event upon
termination of the Employee’s Employment the Employee shall immediately deliver
up to the Company all property in his possession, custody or under his control,
belonging to the Company or any Associated Company including but not limited to
keys, security and computer passes, computer hardware, facsimile machines and
all documents and other records (whether on paper, magnetic tape, CD Rom or any
other kind of computer disk, or in any other form and including correspondence,
lists of clients or customers, notes, memoranda, software, plans, drawings and
other documents and records of whatsoever nature and all copies thereof) made
or compiled or acquired by the Employee during his Employment with the Company
and concerning the business, finances or affairs of the Company or any
Associated Company including, for the avoidance of doubt, the business,
finances or affairs of the clients/customers of the Company or any Associated
Company.

 

15

 

15                                    Suspension
and Termination

 

15.1                           In order to investigate a complaint against
the Employee of misconduct, the Company is entitled to suspend the Employee on
full pay for a period of up to 14 days.

 

15.2                           The Company may by written notice terminate
this agreement with immediate effect if the Employee commits an act or acts of
gross misconduct or in circumstances where the Company is entitled to do so at
law, including but without limitation, if the Employee

 

15.3                           continues after receiving appropriate
warnings to commit any act of serious misconduct or repeats or continues (after
written warning) any other material breach of his obligations under this
Agreement; or

 

15.4                           is guilty of any conduct which in the
reasonable opinion of the Company tends to bring the Employee, the Company or a
Associated Company into disrepute; or

 

15.5                           is convicted of any criminal offence
(excluding an offence under road traffic legislation in the United Kingdom or
elsewhere for which he is not sentenced to any term of imprisonment whether
immediate or suspended); or

 

15.6                           commits any act of dishonesty whether
relating to the Company, any Associated Company, any employees of any such
company or otherwise; or

 

15.7                           becomes bankrupt or makes any arrangement or
composition with his creditors generally; or

 

15.8                           is in the reasonable opinion of the Company
incompetent in the performance of his duties; or

 

15.9                           is found liable, following a full
investigation by the Company, of any serious act of race, sex or disability
discrimination, whether such act or acts results in legal proceedings being
brought against the Company or not; or

 

15.10                     is prevented by any applicable law or regulation,
including being disqualified as a Director by any competent authority, from
continuing as Director of the Company or any Associated Company or performing
any of his duties under this agreement.

 

16

 

15.11                     Any delay by the Company in exercising any
right to termination shall not constitute a  waiver of such right.

 

15.12                     On the termination of this
agreement for whatever reason, the Employee shall at the request of the Company resign (without prejudice to any claims
which the Employee may have against the Company or any Associated Company
arising out of this Agreement or the termination of his employment) from all
and any offices which he may hold as a director of the Company or any
Associated Company and from all other appointments or offices which he holds as
nominees or representatives of the Company. 
The Employee irrevocably authorises any director of the Company to do
any act or sign any document on his behalf as the Company requires in relation
to any such resignation.

 

16                                    GENERAL

 

16.1                           The Employee warrants and confirms that he is
not bound by the terms of or has disclosed all details of any agreement with
any previous employer or other party to refrain from using or disclosing any
trade secret or confidential information in the course of his employment with
the Company and that, as at the date of commencement of the Employment
Agreement and this Agreement, is not bound or subject to any restrictive or
protective covenants or other such provisions in any contract and that he is
legally free to commence employment with the Company.  The Employee further warrants and confirms that his performance
of all the terms of this Agreement and the Employment Agreement does not and
will not breach any restrictive or protective covenants as referred to above or
any agreement to keep in confidence any confidential information, knowledge or
data acquired by him in confidence or in trust prior to his employment with the
Company and the Employee will not disclose to the Company or induce the Company
to use any confidential information or material belonging to any previous
employer or others.  The Employee agrees
to indemnify the Company against all loss, liability costs or damages suffered
or incurred by the Company in the event that any of the facts warranted and
confirmed by the Employee in this clause 14 are untrue or misleading.

 

16.2                           The Employee warrants and confirms that he
has not entered into any agreement, arrangement or understanding, whether
written or oral, with any supplier, contractor, subcontractor or customer,
relating to the business of the Company.

 

17

 

16.3                           The Employee is subject to the disciplinary
and grievance rules of the Company as set out in the Company’s Staff Handbook.

 

16.4                           The expiration or termination of this
Agreement shall not operate to affect such of the provisions of this agreement
as are expressed to operate or have effect after then and shall be without
prejudice to any accrued rights or remedies of the parties.

 

16.5                           The validity, construction and performance of
this Agreement shall be governed by English law.  All disputes claims or proceedings between the parties relating
to the validity, construction or performance of this Agreement shall be subject
to the non-exclusive jurisdiction of the High Court of Justice in England and
Wales to which the parties irrevocably submit.

 

16.6                           Any notice to be given by a party under this
Agreement must be in writing and must be given by delivery at or by sending
first class post or other faster postal service, or telex, facsimile
transmission or other means of telecommunication in permanent written form
(provided the addressee has his own facilities for receiving such
transmissions) to the last known postal address or relevant telecommunications
number of the other party.  Where notice
is given by sending in a prescribed manner it shall be deemed to have been
received at the time at which the letter was delivered personally or
transmitted or if sent by post, 48 hours after posting.  To prove the giving of a notice it shall be
sufficient to show it was despatched.

 

16.7                           This Agreement constitutes the entire
agreement of the parties in relation to the Employee’s employment and all other
agreements or arrangements, whether written or oral, express or implied,
between the Employee and the Company relating to the services of the Employee
save as referred to in this agreement shall be deemed to have been cancelled
and longer in effect.

 

16.8                           A contracting-out certificate pursuant to the
Pension Schemes Act 1993 is not in force.

 

18

 

16.9                           The
terms and conditions of employment set out in this Agreement satisfy the
requirements of section 1 of the Employment Rights Act 1996.

 

IN
WITNESS whereof the Employee has signed as a deed and the
Company has signed the date and year first before written.

 

 

	
  SIGNED
  by Stephen J. McMillan

  	
  )

  	
  /s/ Stephen J. McMillan

  	
   

  
	
  in the presence of

  	
  )

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  KAY CHESTERFIELD

  	
   

  	
  /s/ Kay Chesterfield

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SIGNED by Michael Gooch

  	
  )

  	
  /s/ Michael Gooch

  	
   

  
	
  for
  and on behalf of

  	
  )

  	
   

  
	
  GFI Holdings Limited

  	
   

  	
   

  
						

 

19Exhibit 10.6

 

EMPLOYMENT AGREEMENT

 

This EMPLOYMENT AGREEMENT (“Agreement”), is made as of
November 18, 2002, by and between GFI
Group Inc. (the “Company” or “GFI”), a Delaware Corporation, having
offices at 100 Wall Street, New York, New York, and James A. Peers, who currently resides at 2658 North Southport
Avenue, Unit G, Chicago, Illinois 60614 (“Executive”).

 

W I T N E S S E T H:

 

WHEREAS, to
promote the ongoing business of the Company, the Company desires to assure
itself of the right to Executive’s services on the terms and conditions of this
Agreement; and

 

WHEREAS, Executive
has experience relating to the Company and is willing and able to render his
services to the Company on the terms and conditions of this Agreement.

 

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

 

1.             Nature of Employment.

 

(a)           The Company hereby engages Executive as a full-time
employee to hold the position of Chief Financial Officer, and Executive accepts
such employment, on the terms and conditions set forth in this Agreement.  Throughout the period of Executive’s
employment with the Company, subject to the direction of the Board of Directors
of the Company (the “Board”) and the Company’s officers designated by the
Board, Executive shall perform and discharge well and faithfully such duties
and functions as may be assigned to him from time to time by the Company in its
discretion in connection with the conduct of its business, including with respect
to any business conducted by any affiliate of the Company (including any
subsidiaries,  parents, or other
enterprises under common ownership or control with the Company) (each a
“Related Entity”).  If Executive is
elected or appointed an officer or director of the Company, or any other
Related Entity, during the period of Executive’s employment with the Company,
Executive will serve in such capacity without additional compensation.

 

(b)           During the period of Executive’s employment with the
Company, Executive:  (i) will devote
100% of his employment energies, interests, abilities and time to the
performance of his duties and shall not, without the written consent of the
Chief Executive Officer of the Company, render to others any service of any
kind for compensation; (ii) will not render services to any business activity
that is directly or indirectly competitive with any business conducted by the
Company or any Related Entity; (iii) will observe and carry out such reasonable
rules, regulations, policies, directions and restrictions as may be established
from time to time by the Board or the board of directors of any Related Entity,
including but not limited to the published standard policies, practices and
procedures of the Company as in effect from time to time; and (iv) do such
traveling as may be required in connection with the performance of such duties
and responsibilities.

 

 

(c)           Executive acknowledges that this Agreement contains
non-competition and non-disclosure or proprietary information provisions, and
Executive agrees to comply with these provisions. Executive understands that
entering into and complying with these provisions is a condition to Executive’s
employment and that failure to comply with the terms and conditions of these
provisions may result in termination “for cause” under this Agreement and in
other damages to the Company.

 

2.            Term of Employment.

 

(a)           Executive shall be employed by the Company commencing on
August 12, 2002, and continuing until terminated as provided herein.

 

(b)           This Agreement may be terminated at any time upon either
party’s giving prior written notice to the other (the “Notice of Termination”),
as provided herein, of not less than six (6) months (the “Notice Period”). The
Company reserves the right to pay salary, net of applicable tax and other
withholdings, in lieu of employment of Executive during the Notice Period. The
Company also has the right to require Executive to remain away from work on
full pay for such period and on such conditions as the Company may specify. For
so long as the Executive is required not to work during the Notice Period, the
Executive will remain employed by the Company, will continue to receive
compensation and benefits to the extent provided in Section 3 below and
will be bound by all of the terms of this Agreement. For purposes of the
provisions of Section 5(d) below, the length of the Period of Restriction
(as such term is defined below) will be reduced by the number of weeks, if any,
that the Executive remains employed by the Company but is required to remain
away from work during the Notice Period.

 

(c)           No Notice of Termination shall be given nor salary in lieu
of Notice of Termination nor any severance amounts shall be payable when
Executive’s employment is terminated by the Company for cause (as such term is
hereinafter defined), or when Executive’s employment is terminated by reason of
his death or permanent disability (as such term is hereinafter defined). As
used herein, the term “cause” shall mean and be limited to: (i) any material breach
of this Agreement by Executive; (ii) Executive’s engagement in any conduct or
activity constituting a breach of fiduciary duty, willful misconduct or gross
negligence relating to the Company or the performance of Executive’s duties and
responsibilities hereunder that has an adverse impact on the Company; (iii)
Executive’s conviction of, or plea of nolo
contendre to, any crime under the laws of the United States, any
state or political subdivision thereof or any other applicable jurisdiction, if
such crime constitutes a felony or a misdemeanor that involves moral turpitude
or, if such crime is committed under the applicable law of any jurisdiction
other than the United States or a state or political subdivision thereof, such
crime is of comparable severity and subject to comparable penalties as a felony
or misdemeanor involving moral turpitude under United States law; (iv) an act
of deception, fraud, misrepresentation or dishonesty by Executive in the
performance of Executive’s duties and responsibilities hereunder; (v)
Executive’s willful and continued failure or refusal to comply with the
Company’s lawful policies and procedures applicable to its employees; or (vi)
the Executive’s failure to maintain any professional license(s) necessary to
the performance of the duties described in Section l(a) above. In such
circumstances, Executive will have no claim for damages for wrongful dismissal
against the Company or its Related Entities, and such termination shall be
without prejudice to any claim that the Company may

 

 

2

 

have against Executive for damages
arising from any misconduct by Executive, including any breach by Executive of
any term of this Agreement.

 

(d)           This Agreement may also be terminated, with or without
notice at the option of the Company, in the event of permanent disability (as
hereinafter defined) of Executive. As used herein, the term “permanent
disability” shall mean, and be limited to, any physical or mental illness,
disability or impairment that, after reasonable accommodation, prevents or may
reasonably be expected to prevent Executive from continuing the performance of
Executive’s normal duties and responsibilities hereunder for a period in excess
of sixty (60) consecutive days or of ninety (90) non-consecutive days within
any given annual period.

 

(e)           This Agreement may be terminated by Executive for good
reason (as such term is hereinafter defined) in accordance with this
subsection 2(e).   As used herein,
the term “good reason” shall mean any of the following events occurring on or
after a change in control (as such term is hereinafter defined) of the Company:
(i) relocation of the Executive’s usual place of business to a location more
than fifty (50) miles from 100 Wall Street, New York, New York, (ii) any
material diminution of the Executive’s position or the Executive’s duties and
responsibilities, (iii) any material diminution of the Executive’s Base Salary,
or (iv) any other material breach of this Agreement that continues uncured, if
capable of cure, for at least thirty (30) days after the Executive has provided
the Company, or its successor in interest, with written notice thereof and an
opportunity to cure.  There shall be no
further requirement of notice for a termination of employment by the Executive
for good reason.  If the Executive does
not exercise the right to terminate this Agreement for good reason within
twelve (12) months after the occurrence of an event of good reason, such right
shall be waived unless and until there occurs a subsequent change in control of
the Company or its successor.

 

For purposes of this Agreement, the
term “change in control” shall mean (A) the acquisition by any person or group
of persons acting in concert, of beneficial ownership (within the meaning of
Rule 13d-3 under the Securities Exchange Act of 1934, as amended), directly or
indirectly, through a purchase, merger or other acquisition transaction or
series of transactions, of securities of the Company entitling such person or
group to exercise 50% or more of the combined voting power of the Company’s
securities, other than in connection with the initial public offering of the
Company’s equity securities, (B) the transfer, whether by sale or merger, of
all or substantially all of the business and assets of the Company to any
person or group of persons acting in concert, or (C) the adoption of a plan of
liquidation or dissolution of the Company, other than, in each such case
above, any such acquisition or transfer to (x) the Company or an affiliate (as
such term is hereinafter defined) of the Company, (y) a trustee or other
fiduciary acting on behalf of any employee benefit plan maintained by the
Company or a member of the Company’s control group (within the meaning of the
Employee Retirement Income Security Act of 1974, as amended), or (z) any person
who currently owns at least 25% of the combined voting power of the Company’s
securities (on a fully diluted basis). For purposes of this definition of
change in control, the term “affiliate” shall mean, with respect to any person,
any other person that, directly or indirectly through one or more
intermediaries, controls, is controlled by or is under common control with such
first person, and the term “control” shall mean the possession, directly or
indirectly, of the power to direct or cause the direction of the management and
policies of an entity (other than a

 

 

3

 

natural person), whether through
ownership of voting capital stock, by contract or otherwise; and the term
“person” shall mean any individual, corporation, partnership, joint venture,
estate, trust, company, firm or other enterprise, association, organization or
entity.

 

3.             Compensation and Benefits

 

For the full and faithful
performance of the services to be rendered by Executive, in consideration of
Executive’s obligations under this Agreement, provided Executive is not in
breach of this Agreement, the Company shall pay to Executive and Executive
shall be entitled to receive:

 

(a)           Base Compensation.  As compensation for his services to be
rendered hereunder, the Company shall pay to Executive a base salary at the
rate of $250,000 per annum (the “Base Salary”), which shall be payable in
periodic installments in accordance with the standard payroll practices of the
Company in effect from time to time.

 

(b)           Stock Options.  Subject to the execution of a stock option
grant agreement, an employee stock option to purchase up to 750,000 shares of
the Class B common stock of GFI Group Inc., with an exercise price to be
determined by the Board of Directors of GFI Group Inc., which options shall be
issued and shall vest in accordance with all applicable agreements and plans,
including the GFI Group Inc. 2002 Stock Option Plan and the above-mentioned stock
option grant agreement (the “Options Bonus”).

 

(c)           Discretionary Bonus.  The Company may pay an additional
discretionary bonus, in such an amount and at such time as may be determined by
the Company, in its sole and absolute discretion (“Discretionary Bonus”);
provided, however, the Discretionary Bonus for calendar year 2002 shall be paid
by the Company during either the month of December 2002 or
January 2003 at Executive’s discretion.

 

(d)           Fringe Benefits.  The Company shall also make available to
Executive, throughout the period of his employment hereunder, such benefits and
perquisites as are generally provided by the Company to its executives at
Executive’s level of responsibility, provided, however, that
nothing herein contained shall be deemed to require the Company to adopt or
maintain any particular plan or policy. In addition, upon commencement of
Executive’s employment pursuant to this Agreement, the Company will reimburse
Executive for the following expenses: reasonable expenses to move Executive’s
personal items from Chicago to the New York City metropolitan area, reasonable
closing costs associated with obtaining new living arrangements in New York, up
to two months of reasonable interim housing in the New York City metropolitan
area and up to three round trip airline tickets from Chicago to New York for
Executive and his spouse for the purpose of locating living arrangements in the
New York City metropolitan area. Notwithstanding the prior sentence, the
Company shall only be obligated to reimburse Executive for the expenses set
forth in the prior sentence if and to the extent that the amount of each
expense has been consented to by the Company’s Chief Operating Officer or Chief
Executive Officer prior to the incurrence of such expense.   In accordance with the terms and conditions
of GFI’s written policy regarding short-term disability, as amended from time
to

 

4

 

time, Executive will be provided with
the maximum amount of coverage for an individual employee as set forth in such
policy for a period not to exceed twelve (12) weeks).

 

(e)           Expenses.
Throughout the period of Executive’s employment hereunder, the Company shall
reimburse Executive for reasonable out-of-pocket business expenses incurred by
Executive in connection with the performance of his duties and responsibilities
hereunder; provided that Executive submits documentation reasonably
required by Company expense reimbursement policies and procedures in effect and
as amended from time to time.

 

(f)            Withholding.  All amounts of compensation payable to the
Executive hereunder shall be subject to, and paid after reduction for, any and
all required deductions or withholdings for federal, state, local and foreign
income tax withholding, Social Security, Medicare, unemployment or other
similar government benefit or insurance contributions, and any other deductions
or withholdings required by law or authorized by the Executive.

 

4.           Vacation, etc.

 

Executive
shall further be entitled to paid vacation, holidays, personal days and sick
days in accordance with the Company’s standard policies and procedures in
effect from time to time; provided, however, Executive shall be entitled to
four weeks of vacation per year.

 

5.           Special Covenants

 

(a)           Nondisclosure of
Confidential and Proprietary Information

 

(i)            Executive acknowledges that during the term of this
Agreement, Executive will have access to and possession of trade secrets,
confidential information and proprietary information (collectively, and as defined
more extensively below, “Confidential Information”) of the Company, and in some
instances, of its Related Entities and their respective clients. Executive
recognizes and acknowledges that this Confidential Information is valuable,
special and unique to the business of the Company and each Related Entity, and
that access to and knowledge thereof are essential to the performance of
Executive’s duties to the Company and to each Related Entity, if applicable.
During the time that Executive is an employee of the Company and at all times
thereafter, Executive will keep secret and will not use or disclose any
Confidential Information to any person or entity, in any fashion or for any
purpose whatsoever, except at the request of the Company or as may be required
by applicable law.

 

(ii)           The term “Confidential Information”, includes, but is not
limited to, information written, in digital form, in graphic form,
electronically stored, orally transmitted or memorized concerning or relating
to the Company or any of its Related Entities, including all financial data
relating to the business of GFI and/or any of its Related Entities, lines of
credit or debt obligations, customer pricing information, telephone numbers,
addresses of and personal and contract information about or relating to GFI
employees, or traders and other dealer representatives, profit and loss
statements, productivity data, financial models, computer software programs,
source and other codes, information about direct communication lines,
electronic and voice trading systems, screen systems and wiring instructions,
all information about the Company’s or any of its Related Entities’ business
prospects and opportunities, and all other information about or gained from any
customer to the Company or to any Related Entity providing services during
Executive’s

 

 

5

 

employment with the Company and all
information reasonably determined by the Company to be proprietary or
confidential. This clause shall not apply to any confidential information which
enters the public domain other than through Executive’s breach of this
Agreement.

 

(iii)          Executive further recognizes that GFI and certain Related
Entities have received and in the future will receive from third parties
confidential or proprietary information (“Third Party Information”) subject to
a duty on their part to maintain the confidentiality of such information and to
use it only for certain limited purposes. Executive will hold Third Party
Information in the strictest confidence and will not disclose to anyone (other
than Company personnel who need to know such information in connection with
their work for GFI) or use, except in connection with work for GFI, Third Party
Information unless expressly authorized by GFI in writing.

 

(iv)          All Confidential Information, proprietary and/or
confidential files and records are and at all times shall remain the exclusive
property of the Company. Executive agrees to store and maintain all
Confidential Information in a secure place. Executive agrees to make no use of
any Confidential Information on his own behalf or on behalf of any other person
or entity other than the Company. Executive further agrees that any property
situated on the Company’s premises and owned by the Company, including computer
disks and other digital, analog or hard copy storage media, filing cabinets,
lockers, desks or other work areas, is subject to inspection by Company
personnel at any time with or without notice, When Executive leaves the employ
of the Company, Executive will deliver to the Company (and will not keep in his
possession, recreate or deliver to anyone else) any and all devices, records,
recordings, data, notes, reports, proposals, lists, correspondence,
specifications, drawings, blueprints, sketches, materials, computer materials,
equipment, other documents or property, together with all copies thereof (in
whatever medium recorded), belonging to the Company, its successors or assigns.

 

(b)         Assignment
of Inventions and Intellectual Property

 

(i)            The term “Proprietary Rights” will mean all trade
secrets, trademarks, service marks, patents, copyrights, mask works and other
intellectual property rights throughout the world. The term “Inventions” shall
mean all Proprietary Rights, inventions, ideas, processes, formulas, source and
object codes, data, programs, technology, writings, software programs, other
works of authorship, know-how, discoveries, developments, designs, schematics,
manuals, drawings, techniques, employee suggestions, development tools,
computer printouts, or any claim of rights (or any related improvements or
modifications to the foregoing).

 

(ii)           Subject to Sections 5(b)(iii) and 5(b)(iv), Executive
hereby assigns and agrees to assign in the future (when any such Invention or
Proprietary Right is first reduced to practice or first fixed in a tangible
medium, as applicable) to the Company all right, title and interest in and to
any and all Inventions (and all Proprietary Rights with respect thereto)
whether or not patentable or registrable under copyright or similar statutes,
made or conceived or reduced to practice or learned by Executive, either alone
or jointly with others, during or at any time after the period of employment
with the Company, which (a) relate to methods, apparatus, designs, products,
processes or devices sold, leased, used or under construction or development by
the Company or any Related Entity, or otherwise relate to or pertain to the
actual or anticipated business, functions, operations, research or development
of the Company, (b) arise (wholly or

 

6

 

partly) from Executive’s efforts during
any time that Executive is employed by the Company or utilizing any physical or
intellectual property owned by the Company, or any Related Entity, or (c) is
based on any information or knowledge gained by Executive through his
employment with the Company. Inventions assigned to the Company, or to a third
party as directed by the Company pursuant to this Section, are hereinafter
referred to as “Company Inventions.”

 

(iii)          During the period of employment, and for six (6) months
thereafter, Executive will promptly disclose to the Company, fully and in
writing, all Inventions authored, conceived or reduced to practice by
Executive, either alone or jointly with others. In addition, Executive will
promptly disclose to the Company all patent applications filed by Executive or
on his behalf within six (6) months after termination of employment.

 

(iv)          Executive also agrees to assign all right, title and
interest in and to any particular Company Invention to a third party, including
without limitation the United States, as directed by the Company.

 

(v)           Executive acknowledges that all original works of
authorship which are made by Executive (solely or jointly with others) within
the scope of employment and which may be protected by copyright are “works made
for hire,” pursuant to United States Copyright Act (17 U.S.C. Section 101)
and are the property of the Company or any Related Entity, as applicable,
without limitation which shall own all rights of copyright therein including
the sole and exclusive right to reproduce such works in multiple copies of
distribution or sale to the public and to create and exploit derivative works
based thereon.

 

(vi)          Executive will execute, verify and deliver assignments of
such Proprietary Rights to the Company or its designee. Executive’s obligation
to assist the Company with respect to Proprietary Rights relating to such
Company Inventions in any and all countries will continue beyond the
termination of employment and the Company will provide compensation at a
reasonable rate after termination for the time actually spent by Executive at
the Company’s request on such assistance.

 

(c)           No Inducement or
Employment of Other Employees

 

During the Period of Restriction
(as such term is defined below), Executive will not, directly or indirectly
employ, assist any enterprise to employ, solicit the employment of, or attempt
to affiliate for profit with any employee of, or any independent contractor
performing services for, the Company or any of its Related Entities, or any
person who was such an employee or independent contractor at any time during
the six (6) months immediately preceding the termination of Executive’s employment
hereunder, and Executive will not induce or otherwise encourage any such
employee or independent contractor to leave the employ of, or to cease
rendering services to the Company or any of its Related Entities.

 

(d)           Non-Solicitation,
Non-Competition

 

(i)            A.            During
the Period of Restriction (as such term is defined below),
Executive agrees to refrain, directly or indirectly, from accepting business
from, doing business with, inducing or soliciting any Customer or Vendor of the
Company to do business

 

7

 

with Executive in competition with any business in which the Company or
any entity related to the Company is
engaged, except on behalf of the Company or as authorized in writing by the Company;

 

                                    B.
        For the purpose of subsection (i)(A), the term “Customers” shall
include any person who is or was a customer of the Company or any of its
Related Entities at any time during the Period of Restriction, and the term
“Vendors” shall include those enterprises or services who have provided any
services to the Company or any Related Entities during the last six (6) months of Executive’s employment under this
Agreement.

 

                        (ii)
       During the Period of Restriction (as such term is defined below), Executive may not engage in activities, render
services or affiliate himself, in any capacity (except save by way of portfolio investment in shares quoted on a
recognized stock exchange whereby Executive owns less than 1% of the
outstanding stock of such entity), with any entity that provides services that
are competitive with those rendered by the Company or any Related Entity within the metropolitan areas of New York
City, London, Sydney, Singapore, Hong Kong and/or any other region or
geographic financial center within which Executive has rendered services during this employment tenure with the
Company.

 

                        (iii)
      For purposes of this
Agreement, the term “Period of Restriction” shall
mean the term of the Executive’s employment with the Company pursuant to
Section 2(a) of this Agreement plus
the twelve (12) months immediately following termination of the Executive’s
employment; provided  that for
purposes of paragraph 5(d)(ii) only, the post­employment portion of the Period of Restriction shall be nine (9)
months, rather than twelve (12) months; and provided,  further,
that for purposes of Section 5(d) (but not
Section 5(c)), the Period of
Restriction will be reduced pursuant to Section 2(b) above by that number of
weeks, if any, that the Executive remains
employed by the Company but is required to remain away from work during the
Notice Period.

 

            (e)        Covenants
Reasonable; Additional Remedies; Due Consideration,

 

                   (i)
     The Executive acknowledges that he will occupy a position of responsibility and trust, in which the Executive
will have access to Confidential Information and will be privy to the confidential business plans and prospects of the
Company, that the Executive’s
relationships with Customers and Vendors of the Company may be critical to the Company’s continued success and that Executive’s
services under this Agreement are important, valuable and unique. Accordingly, the Executive further acknowledges
that the restrictive covenants of
this Section 5 are reasonably necessary to protect valuable business interests
of the Company.

 

            (ii)        The parties hereto
acknowledge and agree that in the event of a violation of any of the provisions of this Section 5, the Company would
suffer irreparable harm, the damages suffered by the Company may be
difficult to ascertain, and the Company may not have an adequate remedy at law. Accordingly, the parties agree that in
the event of such a breach by Executive, if the Company so elects, the
Company shall be entitled, in addition to all other remedies available to it,
to enforce this Section 5 by injunction, restraining order, specific performance or other injunction relief, without
bond. Notwithstanding the provisions of Section

 

8

 

12(d) below, an action by the Company
seeking to impose any of such remedies may be brought in a court of law. Such
remedies shall not be deemed to be exclusive of any other remedies available to
the Company, by judicial or arbitral proceedings or otherwise.

 

(iii)          The Executive acknowledges that should he breach the post-employment
restrictions set forth in Section 5 herein during the Period of
Restriction, the Company shall not thereafter be required to pay any amounts
pursuant to Section 6(a)(ii) hereof and the Company shall have no other or
further obligation to the Executive under this Agreement.

 

(iv)          The Executive acknowledges that the
Company’s agreement to provide the benefits payable to the Executive upon
termination of employment pursuant to Sections 6(a) and (c) are additional
consideration for Executive’s agreement to abide by the restrictive covenants
contained in this Section 5 
including, without limitation, the non-solicitation and non-competition
provisions of Section 5(d).

 

6.             Termination of Employment

 

(a)           Termination without
cause

 

Subject to the provisions of
Section 2 hereof, upon termination of the employment of the Executive by
the Company without cause after completion of the notice period provided in
Section 2(b), the Executive shall be entitled to receive:  (i) the amount of the Executive’s Base Salary
accrued with respect to the period prior to the date of termination of the
Executive’s employment, to the extent not previously paid, (ii) a salary
continuation benefit for a period of six (6) months following the date of
termination of Executive’s employment, at a rate equal to the rate of
Executive’s Base Salary as of the day immediately preceding the date of
termination, payable at the times and in the manner of the Company’s regular
payroll practices, provided, however, that this period of salary
continuation benefit will be reduced by that number of weeks, if any, that the
Executive remains employed by the Company but is required to remain away from
work during the Notice Period and shall be further reduced to the extent that
the Company pays salary in lieu of employment of Executive during the Notice
Period and (iii) an amount in lieu of Discretionary Bonus equal to (x) the
Discretionary Bonus, if any, paid to the Executive for the fiscal year of the
Company immediately preceding the year in which Executive’s employment is
terminated, multiplied by (y) a fraction, the numerator of which is the number
of days of Executive’s employment by the Company during the fiscal year of the
Company in which Executive’s employment is terminated, and the denominator of
which is 365.   Any amount payable to
the Executive pursuant to clause (ii) or (iii) of this Section 6(a) shall
be paid to the Executive only in the event that he executes a release of
liability in favor of the Company in a form satisfactory to the Company and to
the extent that Executive is not otherwise in breach of this Agreement or such
release agreement at the time of payment. Notwithstanding anything else
contained herein, in the event that the Executive is terminated without cause
within the one year period following a “change of control” (as defined herein),
Executive shall be entitled to receive the benefits set forth in
Section 6(d) in lieu of the benefits set forth in Section 6(a) above.

 

(b)           Termination with cause
or voluntary termination

 

 

9

 

 

In the event that Executive’s
employment is terminated by the Company with “cause” (as such term in defined
in Section 2(c)), or is terminated voluntarily by Executive after notice
as provided in Section 2(b) above, the Company shall pay the Executive the
amount of the Executive’s Base Salary accrued with respect to the period prior
to the date of termination of the Executive’s employment, to the extent not
previously paid, and the Company shall have no other or further obligation to
the Executive hereunder, including without limitation any obligation to make
severance payments or payments in respect of Discretionary Bonus.

 

(c)           Other termination

 

In the event that Executive’s
employment is terminated by reason of the Executive’s death or permanent
disability, the Company shall pay the Executive (or his personal representative
as the case may be): (i) the amount of the Executive’s Base Salary accrued with
respect to the period prior to the date of termination of Executive’s
employment, to the extent not previously paid, (ii) the amount of any benefits
as are payable to the Executive (or his personal representative) by reason of
such death or disability under the terms of any employee plan or insurance
program maintained by the Company and in which the Executive was a participant,
and (iii) an amount in lieu of Discretionary Bonus equal to (x) the
Discretionary Bonus, if any, paid to the Executive for the fiscal year of the
Company immediately preceding the year in which Executive’s employment is
terminated, multiplied by (y) a fraction, the numerator of which is the number
of days of Executive’s employment by the Company during the fiscal year of the
Company in which Executive’s employment is terminated, and the denominator of
which is 365. Any amount payable to the Executive pursuant to clause (ii) or
(iii) of this Section 6(c) shall be paid to the Executive only in the
event that he (or his personal representative as the case may be) executes a
release of liability in favor of the Company in a form satisfactory to the
Company.

 

(d)           Termination with good
reason.

 

Subject to the provisions of
Section 2 hereof, upon termination of the employment of the Executive by
the Executive with good reason as provided in Section 2(e), the Executive
shall be entitled to receive: (i) the amount of the Executive’s Base Salary
accrued with respect to the period prior to the date of termination of the
Executive’s employment, to the extent not previously paid, (ii) a lump sum
payment in an amount equal to twelve (12) months of Executive’s Base Salary at
a rate equal to the rate of Executive’s Base Salary as of the day immediately
preceding the date of termination, minus applicable withholdings and
deductions, (iii) the cost of maintaining Executive’s health and dental
insurance coverage under COBRA until the earlier of six (6) months following
the date of termination or the date Executive secures new employment and is
eligible for health care benefits; (iv) subject to the following sentence, in
lieu of any employee or incentive stock options granted to Executive which are
outstanding (vested or unvested) and unexercised by Executive at the date of
termination of the Executive’s employment, a lump sum payment in an amount per
option equal to 75% of the excess of the value of a share of the common stock
underlying the option on the date of the relevant change of control as
determined by the Company’s board of directors in connection with the change of
control transaction over the exercise price of the option ; provided, however,
such payment shall be conditioned on the

 

10

 

execution by Executive of an agreement
terminating all such outstanding options in a form acceptable to the Company and
(v) an amount in lieu of Discretionary Bonus equal to (x) the Discretionary
Bonus, if any, paid to the Executive for the fiscal year of the Company
immediately preceding the year in which Executive’s employment is terminated,
multiplied by (y) a fraction, the numerator of which is the number of days of
Executive’s employment by the Company during the fiscal year of the Company in
which Executive’s employment is terminated, and the denominator of which is
365. Notwithstanding the foregoing, in the event that any class of the
Company’s equity securities are registered under the Securities Act of 1933, as
amended, then in lieu of the lump sum payment described in clause (iv) of the
preceding sentence, all employee or incentive stock options granted to Executive
which are outstanding and unexercised by Executive on the date of termination
of the Executive’s employment shall become immediately fully vested and such
option shall continue to be exercisable by Executive at any time within the one
year period following the date of termination of Executive’s employment; provided,
however, in no event may the options be exercised after the term
provided in the applicable option grant agreement and, provided, further,
nothing herein shall limit the Company’s right to cancel any outstanding
options as set forth in Article VI(b) of the GFI Group Inc. 2002 Stock
Option Plan. Any amount payable to the Executive pursuant to clause (ii),
(iii), (iv) and (v) of this Section 6(d) shall be paid to the Executive
only in the event that he executes a release of liability in favor of the
Company in a form satisfactory to the Company.

 

7.             No Conflicting Obligations

 

(a)           No Conflicting
Agreements.

 

Executive represents and
warrants to the Company that (i) Executive is not a party to or subject to any
other binding covenants, contracts, agreements, arrangements, employee manuals
or other writings regarding his employment with any former employer (ii)
Executive has the ability and the authority to enter into this Agreement, (iii)
entering into and performing under this Agreement will not violate any
agreement between the Executive and any third party, and (iv) there exist no
obligations to any third party that will restrict Executive’s performance of
his duties to the Company under this Agreement.

 

(b)           No Third Party
Confidential Information.

 

Employee represents and warrants
to the Company that he has returned to his previous employers, respectively,
all documents, records, books, papers, forms, agreements and information, and
any and all property of any nature whatsoever, belonging to such previous
employers or containing any information deemed confidential or proprietary by
such previous employers. Executive agrees that during Executive’s employment
with the Company, Executive will not improperly use or disclose any
confidential information, proprietary information or trade secrets of any
former employer or any other person to whom Executive has an obligation of
confidentiality, and will not bring onto the premises of the Company any unpublished
documents, information or other property belonging to any former employer or
any other person to whom Executive has an obligation of confidentiality unless
Executive’s possession and use of

 

11

 

such property has been consented to in
writing by such former employer or other person, as the case may be.

 

8.             Notification of New Employer

 

In the event that Executive
leaves the employ of the Company, Executive hereby agrees to notify his new
employer of those of his obligations which are continuing under this Agreement
after the termination thereof.

 

9.             Notices

 

Any notice of communication
permitted or required by this Agreement shall be in writing and delivered
personally or via overnight courier or certified mail, return receipt
requested:

 

	
  If to the Company:

  	
   

  	
  GFI Group Inc.

  
	
   

  	
   

  	
  100 Wall Street

  
	
   

  	
   

  	
  New York, NY 10005

  
	
   

  	
   

  	
  Attn: General Counsel

  
	
   

  	
   

  	
   

  
	
  If to Executive:

  	
   

  	
  at the address specified above.

  

 

10.          Opportunity for Review

 

EXECUTIVE ACKNOWLEDGES THAT HE
HAS REVIEWED THIS AGREEMENT CAREFULLY AND HAS HAD AMPLE OPPORTUNITY TO OBTAIN
ADVICE AS TO THE MEANING OF THE TERMS, COVENANTS AND AGREEMENTS CONTAINED
HEREIN FROM SUCH PROFESSIONAL ADVISORS AS EXECUTIVE HAS DEEMED APPROPRIATE OR
NECESSARY. Executive further acknowledges that the Company will be irreparably
harmed if Executive discloses the contents hereof, whether orally or in
writing, to any person or party except as permitted or required by this
Agreement and, therefore, Executive affirms that any such disclosure shall be
deemed a material breach of this Agreement. Notwithstanding the foregoing,
Executive may disclose and review this Agreement with any of his professional
advisors provided such advisors undertake to retain the confidentiality of the
content of this Agreement.

 

11.          Effective Date

 

This Agreement shall become
effective as of the date first written above.

 

12.          General

 

(a)           No waiver by the Company of any breach of this Agreement
will be a waiver of any preceding or subsequent breach. No waiver by the
Company of any right under this Agreement will be construed as a waiver of any
other right. The Company will not be required to give notice to enforce strict
adherence to all terms of this Agreement.

 

 

12

 

(b) Neither this Agreement
nor any rights or obligations hereunder may be assigned by Executive without
the express prior written consent of the Company. This Agreement may be
assigned by the Company to any affiliate of the Company or to a successor in
interest to the assets and business of the Company.

 

(c) The captions and
paragraph headings used in this Agreement are for convenience of reference only, and will not affect the construction or
interpretation of this Agreement or
any of the provisions hereof.

 

(d) This Agreement shall be
governed by, and construed and enforced in accordance with, the internal laws
of the State of New York without regard to, their conflicts of law provisions. Each of the parties hereto acknowledges that service of process in any proceeding before a court of law arising out of
or in connection with this Agreement, may be made by delivery of a copy thereof in accordance with the notice
provisions of Section 9  of this Agreement.

 

(e) Except as
provided in Section 5(e) above, the parties hereby agree that all claims,
disputes or controversies ("Claims") arising
under this Agreement or otherwise concerning in any way the Executives
employment, including, without limitation, Claims for wages or
salary, severance or other compensation; Claims for breach of any contract or
covenant (express or implied); tort Claims; Claims for any type of discrimination
including, without limitation, race, sex, religion, national origin, age,
marital status or disability; Claims for benefits (except where
any applicable employee benefit or pension plan specifies a different procedure
for
resolving such Claims) and Claims for violation of any federal, state or other
governmental law, statute, regulation, rule or ordinance (but excluding
Claims for workers compensation or unemployment benefits), shall be
resolved exclusively through arbitration. Such arbitration shall be
conducted before, and in accordance with the arbitration rules of, the National
Association of Securities Dealers ("NASD"), the
New York Stock Exchange ("NYSE") or the National Futures Association ("NFA") if the matter is eligible for such arbitration and
the NASD, NYSE or NFA, as the case may
be, agrees to arbitrate. This agreement to arbitrate before the NASD, NYSE or NFA includes, but is not limited to, Claims
asserted under the Age Discrimination in Employment Act, as amended, Title VII
of the Civil Rights Act of 1964, as amended, the Employee Retirement Income Security Act of 1974, as amended, Section 1981 of the Civil Rights Act of 18666, the Americans with Disabilities Act, the New York
State Human Rights Law, the New York
City Human Rights Law, and any successor statute to any of the foregoing provisions of law. If the matter is not eligible
for arbitration before the NASD, NYSE or NFA, any Claims shall be resolved
through arbitration before the American Arbitration Association and shall be conducted in accordance with its
Employment Arbitration Rules, as the same may be in effect as amended from time to time. The decision of the arbitrators
shall be final and judgment thereon
may be entered in any court of competent jurisdiction.

 

(f) This Agreement will be binding upon and will inure
to the benefit of the parties hereto and their respective heirs, executors,
administrators, personal representatives, successors and permitted
assigns.

 

13

 

(g)           This Agreement may be executed in counterparts, each of
which will be deemed to be an original hereof, but all of which together will
constitute one and the same instrument.

 

(h)           This Agreement constitutes the sole and entire agreement
and understanding between the parties hereto as to the subject matter hereof,
and supersedes all prior discussions, agreements and understandings of every
kind and nature between them as to such subject matter.

 

(i)            This Agreement is intended for the sole and exclusive
benefit of the parties hereto and their respective heirs, executors,
administrators, personal representatives, successors and permitted assigns, and
no other person or entity will have any right to rely on this Agreement or to
claim or derive any benefit herefrom absent the express written consent of the
party to be charged with such reliance or benefit.

 

(j)            If any provision of this Agreement is held invalid or
unenforceable, either in its entirety or by virtue of its scope or application
to given circumstances, such provision will thereupon be deemed modified only
to the extent necessary to render same valid, or not applicable to given
circumstances, or excised from this Agreement, as the situation may require;
and this Agreement will be construed and enforced as if such provision had been
included herein as so modified in scope or application, or had not been
included herein, as the case may be.

 

(k)           The provisions of Section 5, 6 and 12 of this
Agreement will survive the termination of the Executive’s employment in
accordance with their terms.

 

(l)            This Agreement is expressly conditioned upon, if they are
requested by the Company: (i) the Executive’s satisfactory completion of a drug
screening procedure; and (ii) the Executive’s fingerprinting.

 

14

 

IN WITNESS THEREOF, the parties
have executed and delivered this Agreement as of the date first written above.

 

	
   

  	
   

  	
   

  	
  GFI Group Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Stephen McMillan

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Stephen
  McMillan

  
	
   

  	
   

  	
   

  	
  Title:

  	
  C.O.O.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Executive

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ James A. Peers

  
	
   

  	
   

  	
   

  	
  Name: James A. Peers

  

 

 

15

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