Document:

EXHIBIT 10.14

 

PROPRIETARY ACCOUNT SUPPLEMENT

 

TO

 

FULLY DISCLOSED CLEARING AGREEMENT

 

THIS PROPRIETARY ACCOUNT SUPPLEMENT to the Fully Disclosed Clearing Agreement (the “Agreement”) dated February 26, 2008 entered into by Pershing LLC (“Pershing”) and Broadpoint Capital, Inc., n/k/a Gleacher & Company Securities, Inc. (“Broker”) is made and entered into on this 12th day of November, 2010 by and between Pershing and Broker.

 

WHEREAS, Pershing carries and provides clearing and other services for certain proprietary accounts (the “Prop Accounts”) of Broker and also maintains a Deposit Account for Broker pursuant to Paragraph 20 of the Agreement (together with the Prop Accounts, the “Accounts”).

 

WHEREAS, Broker desires that Pershing be able to hypothecate or otherwise utilize the securities in the Accounts to the fullest extent permitted by law.

 

NOW THEREFORE, the parties hereby agree to amend and supplement the Agreement by adding the following provisions thereto:

 

1.                                      CONSENT TO LOAN, PLEDGE OR USE OF SECURITIES

 

To the greatest extent permitted under applicable laws, Broker hereby authorizes Pershing to lend either to Pershing or to others and to otherwise use, sell or pledge any securities held by Pershing in the Accounts, to convey therewith all attendant rights of ownership (including voting rights and the right to transfer the securities to others) and to use all such property as collateral for Pershing’s general loans or other obligations and with respect to repurchase transactions.  Any such property, together with all attendant rights of ownership, may be pledged, re-pledged, sold, hypothecated or re-hypothecated or become subject to repurchase transactions either separately or in common with other property and Pershing shall have no obligations to retain a like amount of similar property in its possession and control.  Broker hereby acknowledges that:  (i) in certain circumstances, such loans or other use may limit, in whole or in part, Broker’s ability to exercise voting rights and other attendant rights of ownership with respect to the loaned, sold or pledged securities and (ii) rather than a dividend, Broker may receive a payment which will not be eligible for the preferential tax rate or treatment which may apply to dividends.

 

2.                                      LIEN

 

Broker hereby grants to Pershing a continuing security interest in, lien on, and right of set-off with respect to, all rights, title and interests of Broker in and to the Collateral (as defined below), as collateral security for the payment and performance of all of Broker’s obligations to Pershing, now existing or hereinafter arising, whether or not such obligations arise under the Agreement (“Broker’s Obligations”) or any other agreement between Pershing and Broker and irrespective of the number of Accounts Broker may have with Pershing, together with all expenses of Pershing in connection therewith, including without limitation reasonable attorneys’ fees.  For purposes hereof, Collateral shall mean:  (i) all cash, investment property, security entitlements, securities, commodities, financial instruments, general intangibles and other property now or hereafter held or carried by Pershing in any of the Accounts in Pershing’s

 

 

possession or control for any purpose, including any assets in transit or held by others on behalf of Pershing; (ii) all rights of  Broker in any contract or agreement with Pershing;  and (iii) all proceeds of and distributions with respect to the foregoing.  In order to satisfy such obligations, upon Broker’s default of Broker’s Obligations, Pershing is authorized to sell or otherwise dispose of any Collateral, to retain any Collateral and set-off, net or recoup any obligations Pershing owes to Broker in respect of Broker’s Obligations, to purchase any property which may have been sold short for Broker’s account and to close any contracts or redeem any mutual funds in such Accounts, in each case without notice.  Pershing shall have all the rights and remedies available to a secured party under the Uniform Commercial Code as in effect in the State of New York (“UCC”), in addition to the rights and remedies provided in the Agreement.

 

Broker and Pershing agree that all Collateral held in or credited to any Account, including without limitation cash, will be treated as “financial assets” under Article 8 of the UCC and that any Account maintained by Broker with Pershing shall be a “securities account” under Article 8 of the UCC.  All Collateral delivered to Pershing shall be free and clear of all adverse claims and all prior liens, claims and encumbrances; and Broker will not cause or allow any of the Collateral to be subject to any adverse claims or any liens, security interests, mortgages or encumbrances of any nature, other than the security interest created in Pershing’s favor.  Furthermore, Collateral consisting of securities shall be delivered in good deliverable form (or Pershing shall have the unrestricted power to place such securities in good deliverable form) in accordance with the requirements of the primary market for such securities.  Broker shall execute such documents and take such other action as Pershing shall reasonably request in order to protect and perfect Pershing’s rights with respect to any such Collateral.  In addition, Broker appoints Pershing as Broker’s attorney-in-fact to act on Broker’s behalf to sign, seal, execute and deliver all documents, and do all such acts as may be required, to realize upon any of Pershing’s rights in the Collateral pursuant to the Agreement.

 

Broker retains the right to redeem any securities subject to this Proprietary Account Supplement from Pershing upon satisfaction of Broker’s Obligations to Pershing.  In the event that Pershing has loaned the securities subject to this Proprietary Account Supplement  to a third party or otherwise used, sold or pledged such securities to a third party and Pershing is unable to redeem those securities from the third party, Pershing shall purchase replacement securities of the same class and amount and provide the replacement securities to Broker.  Pershing shall be responsible for any costs (including all fees, expenses and commissions) incurred in returning the collateral or in purchasing replacement securities.

 

The parties acknowledge that the Agreement and each transaction entered into pursuant to the Agreement is a “securities contract,” within the meaning of the United States Bankruptcy Code (Title 11 of the United States Code) (the “Bankruptcy Code”).  The parties further acknowledge that the Agreement is a “master netting agreement” within the meaning of the Bankruptcy Code and a “netting contract” within the meaning of the Federal Deposit Insurance Corporation Improvement Act of 1991 (“FDICIA”).

 

	
BROKER: Gleacher &   Company Securities, Inc.
    	
 
    	
PERSHING   LLC:
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/   Frank A. Castelluccio
    	
 
    	
By:
    	
/s/   Charles Granito Jr.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
Frank   A. Castelluccio
    	
 
    	
Name:
    	
Charles   Granito Jr.
    

 

2

 

	
Title:
    	
Executive   Managing Director
    	
 
    	
Title:
    	
MD
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Date:
    	
November 12,   2010
    	
 
    	
Date:
    	
November 12,   2010
    

 

3EXHIBIT 10.67

 

GLEACHER & COMPANY, INC.

 

2007 INCENTIVE COMPENSATION PLAN
 STOCK OPTION AGREEMENT

 

THIS STOCK OPTION AGREEMENT (the “Agreement”) confirms the grant on November 10, 2010 (the “Grant Date”) by Gleacher & Company, Inc., a Delaware corporation (the “Company”), to Peter McNierney (“Employee”) of non-qualified options (“Options”) to acquire shares of the Company’s common stock (“Shares”), as follows:

 

Number of Shares Covered by Option Granted:  1,350,000

 

How Options Vest and Become Exercisable:  33-1/3% of the Options if not previously forfeited will vest and become exercisable on the first anniversary of the Grant Date; 33-1/3% of the Options, if not previously forfeited, will vest and become exercisable on the second anniversary of the Grant Date; and 33-1/3% of the Options, if not previously forfeited, will vest and become exercisable on the third anniversary of the Grant Date, provided in each case that Employee continues to be employed by the Company or another Group Entity (sometimes referred to herein as an “Employer”) on such vesting date (each, a “Stated Vesting Date”), except as otherwise provided in Section 4 of the Terms and Conditions of Stock Options attached hereto (the “Terms and Conditions”).  If Employee has a Termination of Employment prior to a Stated Vesting Date, any Options that are not otherwise vested and exercisable by that date, will be immediately forfeited except as otherwise provided in Section 4 of the Terms and Conditions.

 

Exercise Prices of the Options:  The exercise price per Share of the Options will be $2.49.

 

Duration of the Options:  Except as otherwise provided in Section 4 of the Terms and Conditions, if not previously forfeited, the Options shall expire and shall no longer be exercisable after the expiration of six years from the Grant Date.

 

The Options are subject to the terms and conditions of the Company’s 2007 Incentive Compensation Plan (the “Plan”), and this Agreement, including the Terms and

 

 

Conditions attached hereto.  The number of Options, the number and kind of Shares deliverable upon exercise of Options, and other terms relating to the Options are subject to adjustment in accordance with Section 5 of the Terms and Conditions and Section 5.3 of the Plan.

 

Employee acknowledges and agrees that (i) Options are nontransferable, except as provided in Section 3 of the Terms and Conditions and Section 9.2 of the Plan, (ii) Options are subject to forfeiture upon Employee’s Termination of Employment as set forth in Section 4 of the Terms and Conditions, and (iii) sales of Shares delivered in settlement of Options will be subject to the Company’s policies regulating trading by employees.

 

IN WITNESS WHEREOF, GLEACHER & COMPANY, 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.

 

	
Employee:
    	
 
    	
GLEACHER & COMPANY, INC.
    
	
 
    	
 
    	
 
    
	
/s/ Peter J. McNierney
    	
 
    	
By:
    	
/s/ Eric Gleacher
    
	
Peter   McNierney
    	
 
    	
 
    	
Eric   Gleacher
    

 

TERMS AND CONDITIONS OF STOCK OPTIONS

 

The following Terms and Conditions apply to the Options granted to Employee by the Company, as specified in the Agreement (of which these Terms and Conditions form a part).  Certain terms of the Options, including the number of Options granted, vesting dates and expiration date, are set forth in the Agreement.

 

1.             GENERAL.  The Options are granted to Employee under the Company’s 2007 Incentive Compensation Plan (the “Plan”).  A copy of the Plan and information regarding the Plan, including documents that constitute the “Prospectus” for the Plan under the Securities Act of 1933, can be obtained from the Company upon request.  All of the applicable terms, conditions and other provisions of the Plan are incorporated by reference herein.  Capitalized terms used in the Agreement and these Terms and Conditions but not defined herein shall have the same meanings as in the Plan.  If there is any conflict between the provisions of the Agreement and this Terms and Conditions and mandatory provisions of the Plan, the provisions of the Plan govern, otherwise, the terms of this document shall prevail.  By accepting the grant of the Options, 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 Executive Compensation Committee (the “Committee”) made from time to time, provided that no such Plan amendment, rule or regulation or Committee decision or determination without the consent of an affected Participant shall materially impair the rights of Employee with respect to the Options.

 

2.             TIME AND METHOD OF EXERCISE.  At any time while any portion of the Options remain vested and exercisable, Employee may exercise such vested Options in whole

 

 

or in part by delivering to the Company written notice of exercise and payment of the exercise price.  Such exercise price may be paid (i) in cash, by check or in another cash equivalent acceptable to the Company, (ii) by transfer to the Company of nonforfeitable, unrestricted Shares held by Employee, (iii) through broker-assisted “cashless” exercise arrangements, to the extent permissible under applicable law, (iv) by any other method permitted under the Plan and under rules established by the Committee and in effect from time to time, or (v) by a combination of the foregoing.

 

3.             NONTRANSFERABILITY.  Employee may not sell, transfer, assign, pledge, margin or otherwise encumber or dispose of Options or any rights hereunder to any third party other than by will or the laws of descent and distribution (or to a designated Beneficiary in the event of Employee’s death), and Options, if exercisable, shall be exercisable during the lifetime of Employee only by Employee or his guardian or legal representative.

 

4.             TERMINATION PROVISIONS.  The following provisions will govern the forfeiture of the Options upon the occurrence of certain events relating to a Termination of Employment, unless otherwise determined by the Committee (subject to Section 8(a) hereof):

 

(a)           Death or Disability.  In the event of Employee’s death or Disability (as defined below), all Options then outstanding, if not previously vested, will immediately become vested and exercisable and all outstanding Options will remain exercisable until the applicable expiration date set forth in the Agreement provided that in the case of Disability, Employee executes a Release and Covenant Agreement; provided however that, any unexercised Options will subsequently be forfeited if there occurs a Forfeiture Event prior to the earlier of (i) the applicable expiration date set forth in the Agreement or (ii) Employee’s death.

 

(b)           Termination by Employee without Good Reason or by the Company for Cause.  In the event of Employee’s Termination of Employment by the Company  for Cause (as defined below) or by the Employee without Good Reason (as defined below), the portion of the then-outstanding Options not vested at the date of such Termination will be forfeited, and the portion of the then-outstanding Options vested at the date of such Termination will remain exercisable until the earliest of (i) the applicable expiration date set forth in the Agreement, (ii) the 90th day after the date of such Termination of Employment or (iii) the occurrence of a Forfeiture Event.

 

(c)           Termination by Employee with Good Reason or by the Company without Cause.  In the event of Employee’s Termination of Employment by the Company without Cause or by Employee with Good Reason, the portion of the then-outstanding Options not vested as of the date of such termination shall continue to vest in accordance with the provisions of the Plan and the schedule set forth in the Agreement and the portion of the then-outstanding Options vested as of the date of such termination will remain exercisable until the applicable expiration date set forth in the Agreement provided that Employee executes a Release and Covenant Agreement; provided however that any vested and unexercised and unvested

 

 

Options will subsequently be forfeited if there occurs a Forfeiture Event prior to the earlier of the (i) the Stated Vesting Date for such Options, (ii) the applicable expiration date set forth in the Agreement or (ii) Employee’s death.

 

5.             SHAREHOLDER’S RIGHTS, DIVIDENDS AND ADJUSTMENTS.

 

a.     Shareholder’s Rights and Dividends.  Employee will have no rights as a shareholder, and will not be entitled to any dividends declared or paid, with respect to any Share underlying an Option unless and until such Share is issued to Employee upon the proper exercise of such Option.

 

b.     Adjustments.  The number of Options credited to Employee, the number of Shares underlying such Options and/or the exercise price per Share of such Options shall be appropriately adjusted, in order to prevent dilution or enlargement of Employee’s rights with respect to such Options and Shares or to reflect any changes in the number of outstanding Shares resulting from any event referred to in Section 5.3 of the Plan.

 

6.             EMPLOYEE REPRESENTATIONS AND WARRANTIES AND RELEASE.  As a condition to any exercise of the Options, the Company may require Employee (i) to make any representation or warranty to the Company as may be required under any applicable law or regulation, to make a representation and warranty that no Forfeiture Event has occurred or is contemplated and (ii) to execute a release of claims against the Company arising before the date of such release, in such form as may be specified by the Company.

 

7.             OTHER TERMS RELATING TO OPTIONS.

 

(a)   Deferral of Settlement.  No settlement of the exercise of an Option may be deferred hereunder.

 

(b)   Fractional Options and Shares.  The number of Shares underlying Options credited to Employee shall not include fractional shares, unless otherwise determined by the Committee.

 

(c)   Tax Withholding.  Employee shall make arrangements satisfactory to the Company, or in, in the absence of such arrangements, a Group Entity may deduct from any payment to be made to Employee any amount necessary, to satisfy requirements of federal, state, local, or foreign tax law to withhold taxes or other amounts with respect to the exercise of the Options.  Unless Employee has made separate arrangements satisfactory to the Company, the Company may elect to withhold Shares deliverable in settlement of the Options having a fair market value (as determined by the Committee) equal to the amount of such tax liability required to be withheld in connection with the exercise of the Options, but the company shall not be obligated to withhold such Shares.

 

 

8.             MISCELLANEOUS.

 

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

 

(b)           No Promise of Employment.  The Options 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.

 

(c).          Governing Law.  THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE WITHOUT GIVING EFFECT TO CONFLICTS OF LAWS PRINCIPLES.

 

(d)           Legal Compliance.  Employee agrees to take any action the Company reasonably deems necessary in order to comply with federal and state laws, or the rules and regulations of the NASDAQ Global Market or any other stock exchange, or any other obligation of the Company or Employee relating to the Options or this Agreement.  Employee agrees that the Options are subject to any forfeiture that may be required by applicable law.

 

(e)           Notices.  Any notice to be given the Company under this Agreement shall be addressed to the Company at 1290 Avenue of the Americas, New York, New York 10104, Attention: Corporate Secretary, 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.             CERTAIN DEFINITIONS.  The following definitions apply for purposes of this Agreement, whether or not Employee has as employment agreement or other agreement with a Group Entity that contains the same or similar defined terms.

 

(a)           “Cause” has the meaning ascribed in the Letter Agreement.

 

(b)           “Disability” means “disability” as determined under the Company’s long-term disability plan, as may be in effect from time to time.

 

(c)           “Forfeiture Event” means without the consent in writing of the Board of Directors of the Company, Employee will not, at any time prior to an applicable Stated Vesting Date or exercise of vested Options, acting alone or in conjunction with others, directly or indirectly (A) induce any customer or client of or investor (excluding anyone who is an investor solely as a holder of Common Stock of the

 

 

Company) in any Group Entity with whom Employee has had contacts or relationships, directly or indirectly, during and within the scope of his employment with any Group Entity, to curtail, limit, or cancel their business with any Group Entity; (B) induce, or attempt to influence, any employee of any Group Entity to terminate employment; (C) solicit, hire or retain as an employee or independent contractor, or assist any third party in the solicitation, hire, or retention as an employee or independent contractor, any person who during the previous 12 months was an employee of any Group Entity; (D) otherwise fail to comply with the conditions set forth in Sections 7.4(b) and (c) of the Plan or (E) breach of the covenants contained in the Release and Covenant Agreement and, for purposes of this clause (E), such covenants shall remain in effect and continue to apply through the Stated Vesting Date or exercise of vested Options, notwithstanding their earlier expiration for purposes of the Release and Covenant Agreement.

 

(d)           “Good Reason” means (A) any reduction in Employee’s base salary or failure to pay any bonuses due Employee; (B) the assignment to Employee of any duties inconsistent in any material respect with his position or with his authority, duties or responsibilities as President and Chief Operating Officer, or any other action by Company which results in a diminution in such position, authority, duties or responsibilities, or reporting relationship, excluding for this purpose any immaterial and inadvertent action not taken in bad faith and remedied by Company promptly (but not later than ten (10) days after receiving notice from Employee); (C) any change in the place of Employee’s principal place of employment to a location outside New York City.

 

(e)           “Group Entity” means either the Company or any of its subsidiaries and affiliates.

 

(f)            “Letter Agreement” means that certain letter agreement entered into by and between Employee and the Company dated September 21, 2010.

 

(g)           “Termination of Employment” means the event by which Employee ceases to be employed by a Group Entity and immediately thereafter is not employed by any other Group Entity.

 

(h)           “Release and Covenant Agreement” means an agreement to be entered into at the time of a Termination of Employment in such form as may be specified by the Company which contains a release of claims against the Company and restrictive covenants and remedies set forth in Sections 7, 8 and 9 of the employment agreement by and between Employee and the Company dated as of May 15, 2007.

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