Document:

EXHIBIT 10.10

 

EQUITY COMPENSATION PROGRAM 

FOR

NONEMPLOYEE DIRECTORS

UNDER THE 

DMRC CORPORATION 2008 INCENTIVE PLAN

 

The following provisions set forth the terms of the stock option grant
program (the “Program”) for nonemployee
directors of DMRC Corporation (the “Company”) under
the Company’s 2008 Incentive Plan (the “Plan”). The
following terms are intended to supplement, not alter or change, the provisions
of the Plan, and in the event of any inconsistency between the terms contained
herein and in the Plan, the Plan shall govern. All capitalized terms that are
not defined herein shall be as defined in the Plan.

 

1.
Eligibility

 

Each director of the Company elected or appointed to the Board who is
not an employee of the Company or any Related Company (an “Eligible
Director”) shall be eligible to receive New Grants and Annual Grants
under the Plan, as discussed below.

 

2.
Initial and Annual Grants of Restricted Stock

 

2.1          Annual
Restricted Stock Grant

 

Beginning with the 2009 Annual Meeting of Stockholders, immediately
following each Annual Meeting of Stockholders, each Eligible Director shall
automatically be granted a Restricted Stock Grant (the “Annual Restricted Stock
Grant”) with a value of $40,000, based on the Fair Market Value of the Common
Stock on the date of grant, with any fractional share rounded to the nearest
whole share (0.5 to be rounded up), on the terms and conditions set forth
herein.

 

2.2          Initial
Restricted Stock Grant

 

Beginning with the 2009 Annual Meeting of Stockholders, upon an Eligible
Director’s initial election or appointment to the Board on a date other than
the date of an Annual Meeting of Stockholders, each such Nonemployee Director
shall automatically be granted a prorated Annual Restricted Stock Grant (a “Prorated
Initial Restricted Stock Grant”), based on the number of full calendar months
between the date of initial election or appointment and the date of the first
anniversary of the then last Annual Meeting of Stockholders.

 

3.
Vesting of Restricted Stock

 

Each Annual Restricted Stock Grant shall fully vest and no longer be
subject to forfeiture to the Company on the date of the next Annual Meeting of
Stockholders following the Restricted Stock granted hereunder.

 

 

Each Prorated Initial Restricted Stock Grant shall fully vest and no
longer be subject to forfeiture to the Company on the date of the next Annual
Meeting of Stockholders following the Restricted Stock Grant granted hereunder.

 

In the event an Eligible Director’s service terminates for any reason
prior to vesting of a Restricted Stock Grant, the shares subject to such
Restricted Stock Grant will automatically be forfeited to the Company.

 

4.
Amendment

 

The Board may amend the provisions contained herein in such respects as
it deems advisable. Any such amendment shall not, without the consent of the
Eligible Director, materially adversely affect any rights of an Eligible
Director under an outstanding option.

 

5. Effective Date

 

The Program shall become effective on the Effective Date of the Plan.

 

2Exhibit 4.1

 

	
  

  	
   

  	
  

  	
   

  	
  

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  THIS CERTIFICATE IS TRANSFERABLE

  IN SOUTH SAINT PAUL, MN.

  	
   

  	
  Safety-Kleen, Inc.

  INCORPORATED UNDER THE STATE LAWS OF
  DELAWARE

  	
   

  	
  SEE REVERSE FOR CERTAIN DEFINITIONS

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  CUSIP 78649R 10 3

  

 

THIS CERTIFIES THAT

 

 

is the owner of

 

FULLY PAID AND NON-ASSESSABLE SHARES OF
COMMON STOCK, $.01 PAR VALUE PER SHARE, OF

 

SAFETY-KLEEN, INC.

 

transferable on the books of the Corporation by the holder hereof in
person or by Attorney upon surrender of this certificate properly endorsed.
This certificate is not valid unless countersigned by the Transfer Agent and
Registrar.

 

IN WITNESS WHEREOF, the said Corporation has
caused this certificate to be signed by facsimile signatures of its duly

authorized officers.

 

 

Dated:

 

	
  

  	
   

  	
  

  
	
  TREASURER

  	
   

  	
  EXECUTIVE VICE PRESIDENT & CFO

  

 

 

COUNTERSIGNED AND REGISTERED:

   WELLS FARGO BANK, N.A.

 

 

	
  BY

  	
  

  	
  TRANSFER AGENT

  AND REGISTRAR

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  AUTHORIZED SIGNATURE

  

 

 

AMERICAN FINANCIAL PRINTING INCORPORATED – MINNEAPOLIS

 

 

The following abbreviations, when used
in the inscription on the face of this certificate, shall be construed as
though they were written out in full according to applicable laws or
regulations:

 

	
  TEN COM

  	
  –

  	
  as tenants in common

  	
  UTMA 

  	
  –

  	
   

  	
  Custodian

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  (Cust)

  	
   

  	
  (Minor)

  
	
  TEN ENT

  	
  –

  	
  as tenants by entireties

  	
   

  	
   

  	
  under Uniform
  Transfer to Minors

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Act 

  
	
  JT TEN

  	
  –

  	
  as joint tenants with right of
  survivorship

  	
   

  	
   

  	
                         (State)

  
	
   

  	
   

  	
  and not as tenants in common

  	
   

  	
   

  	
   

  

 

Additional abbreviations may also be used though not in the above
list.

 

For
value received           
hereby sell, assign and transfer unto

PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING
NUMBER OF ASSIGNEE

 

 

PLEASE PRINT OR
TYPEWRITE NAME AND ADDRESS INCLUDING POSTAL ZIP CODE OF ASSIGNEE

 

 

                                                                                                                                                                                             Shares
of the capital stock represented by the within Certificate, and do hereby
irrevocably constitute and appoint                                                               Attorney
to transfer the said stock on the books of the within-named Corporation with
full power of substitution in the premises.

 

	
  Dated

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NOTICE:  THE SIGNATURE  TO THIS ASSIGNMENT MUST CORRESPOND WITH THE
  NAME AS WRITTEN UPON THE FACE OF THE CERTIFICATE IN EVERY PARTICULAR WITHOUT
  ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATEVER.

  

 

 

SIGNATURE
GUARANTEED

 

ALL GUARANTEES MUST BE MADE BY A
FINANCIAL INSTITUTION (SUCH AS A BANK OR BROKER) WHICH IS A PARTICIPANT IN THE
SECURITIES TRANSFER AGENTS MEDALLION PROGRAM (“STAMP”), THE NEW YORK STOCK
EXCHANGE, INC. MEDALLION SIGNATURE PROGRAM (“MSP”), OR THE STOCK EXCHANGES
MEDALLION PROGRAM (“SEMP”) AND MUST NOT BE DATED. GUARANTEES BY A NOTARY PUBLIC
ARE NOT ACCEPTABLE.Exhibit
10.3

 

CONFIDENTIAL

 

                        ,
2008

 

Mr. Seth Merrin

155 W. 70th
Street, #16A

New York, NY 10023

 

Re:  EMPLOYMENT LETTER AGREEMENT

 

Dear Seth:

 

In keeping with our
discussions, this letter agreement memorializes the terms of your continued
employment with Liquidnet Holdings, Inc. (the “Company”).

 

1.       TITLES
AND DUTIES. Your titles will be President and Chief Executive Officer, and you
will report directly to the Board of Directors of the Company (the “Board”). As
such, you will be responsible for performing such duties and responsibilities
as are customarily assigned to such positions, whether for the Company or any
affiliated entity (each, a “Related Entity”), and to perform such other
services as assigned from time to time by the Board, not inconsistent with your
positions. You will be expected to devote your full business time and attention
to the business of the Company and its Related Entities and the performance of
your duties.

 

2.       COMPENSATION;
TERM. You will receive an annual base salary of $250,000 (the “Base Salary”)
paid in accordance with the payroll procedures of the Company, with annual
increases (but not decreases) as may be determined by the Compensation
Committee of the Board in its discretion. The Base Salary payable hereunder, as
may be increased from time to time, and any other amounts payable to you under
this Agreement (including, without limitation, pursuant to Section 3 and Section 4
below), shall be subject to applicable withholding and payroll taxes, and such
other deductions as may be required under the Company’s employee benefit plans.
The term of your employment under this letter agreement shall begin on the date
hereof and shall continue until terminated in accordance with Section 5
below. Your compensation will be set on a calendar year basis. Any annual
compensation amounts hereunder shall be pro-rated for this year through the end
of this calendar year.

 

3.       BONUSES.
During the term of your employment you will be eligible to receive annual
bonuses under, and historically consistent with, the Company’s bonus plans for
senior level executives, and the grant and payment terms and the amount of any
such bonuses shall be determined by the Compensation Committee of the Board.
Your bonus opportunity shall be at least equal to the opportunities provided to
you under the Company’s current and historical bonus plans for senior level
executives.

 

4.       EMPLOYEE
BENEFITS. During the term of your employment, you will be entitled to
participate in all employee welfare benefit plans of the Company applicable to
senior level executives. In addition, during the term of your employment, you
will be entitled to vacation as 

 

1

 

agreed between you and the
Company. Further, you shall be entitled to reimbursement for expenses incurred
by you in the ordinary course of the Company’s business (subject to the Company’s
policies with respect to reporting and documentation of such expenses).

 

5.        TERMINATION
AND SEVERANCE.

 

a.                                         During the term of employment hereunder, your employment may
be terminated as follows:

 

i.                                                      At
any time upon prior written notice by the Company for any reason other than
Cause (as defined below) or no reason (“Termination Without Cause”).

 

ii.                                                    At
any time upon four (4) months’ prior written notice by you for any reason
other than Good Reason (as defined below) or no reason.

 

iii.                                                 Automatically
in the event of (A) your death or (B) your inability to perform the
essential duties, responsibilities and functions of your position with the
Company as a result of any mental or physical incapacity, even with reasonable
accommodations for such disability or incapacity provided by the Company, which
inability lasts (or is likely to last, based on competent medical evidence
presented to the Board) for a continuous period of six (6) months or
longer. The reasoned and good faith judgment of the Board as to your mental or
physical inability to perform shall be final so long as such judgment is based
on competent medical evidence presented to the Board by you and by any
physician or group of physicians engaged by you or the Board to advise the Board
on such matters.

 

iv.                                                Immediately
upon written notice by the Company if such termination is for Cause (“Termination
for Cause”).

 

v.                                                   Immediately
upon written notice by you if such termination is for Good Reason.

 

vi.                                                At
any time by mutual written agreement between you and the Company.

 

b.                                        Upon termination of your employment hereunder for any
reason, all obligations of the Company shall cease upon such termination,
except the Company’s obligations to (i) pay the compensation set forth in Section 2
hereof through the date of such termination, (ii) provide the benefits set
forth in Section 4 hereof through the date of such termination and to comply
with all state and federal laws and regulations applying to such benefits and (iii) pay
the severance benefits, if applicable, to you pursuant to the terms and
conditions set forth Section 5(c) and Section 5(d) below.
In the event that your employment is terminated by you without Good Reason or as
a result of a Termination for Cause by the Company, you shall not be entitled
to any bonus compensation in respect of the calendar year of your termination.

 

c.                                         In the event that your employment is terminated for Good Reason
or as a result of a Termination Without Cause, if and only if (i) you have
executed and delivered to the Company a mutual general release of all claims
against you, on the one hand, and the Company and its directors, officers and
affiliates, on the other hand, which general 

 

2

 

release shall be in accordance
with the standard form of release required by the Company for other terminated
employees as a condition for severance payment, and (ii) subsequent to
such termination, you shall not have (A) revoked or breached the
provisions of such general release or breached or otherwise failed to comply
with the provisions of Sections 6, 7 or 8 of this letter agreement, or (B) applied
for unemployment compensation chargeable to the Company during such severance
period, you shall be entitled to receive the following:

 

i.                                                       an
amount equal to twelve (12) months’ severance pay at the monthly rate of your
then-current base salary, payable in twelve (12) equal monthly installments
following such termination;

 

ii.                                                    bonus
for the prior year, if any, that the Company has declared that you have earned
but which has not yet been paid;

 

iii.                                                 the
average annual bonus (including the cash and equity component of such annual
bonus) earned by you for the two most recently completed fiscal years of the
Company (it being understood that if you are terminated after the end of a
fiscal year but before the date on which bonuses for such year have been paid
to senior executives of the Company, your average bonus shall be calculated
using the two fiscal years immediately preceding such year) (“Average Bonus”); and

 

iv.                                                continued
medical coverage at active employee rates for a 12-month period.

 

d.                                        In the event that your employment is terminated by reason of
your death or Disability, we shall pay to you (or your personal representative
as the case may be): (i) the amount of your Base Salary and expenses
accrued with respect to the period prior to the date of termination of your employment,
to the extent not previously paid; (ii) bonus for the prior year, if any,
that we have declared that you have earned but which has not yet paid;  (iii) a
lump sum cash payment equal to the your annual bonus (including the cash and
equity component of such annual bonus) from the prior year based on the number
of days of the current year you have been employed by the Company and the
denominator of which is 365;  (iv) continued medical coverage at
active-employee rates for two years or, if earlier, until you receive
subsequent employer-provided coverage; and (v) the amount of any benefits
as are payable to you (or your 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 you were a participant.

 

e.                                         For purposes hereof, the term “Cause” means the following:

 

i.                                                       the
commission of fraud, theft or embezzlement by you in connection with your
duties to the Company or any of its customers or other material business
relations;

 

ii.                                                    your
conviction of (or entry of a plea of guilty or NOLO CONTENDERE to) a felony
(other than minor traffic violations) (A) in connection with your duties
to the Company or any of its customers or other material business 

 

3

 

relations, or (B) that
materially and adversely effects your ability to continue in your position and
fulfill your duties to the Company under applicable laws and regulations;

 

iii.                                                 your
gross mismanagement demonstrably and materially injurious to the Company, which
is not cured within thirty (30) days after a written demand is delivered to you
by the Board which identifies the grounds therefor;

 

iv.                                                any
breach by you of the provisions of this letter agreement (including any breach
by you of the provisions set forth in Sections 6, 7 or 8 hereof) or any other
breach of any other agreement between or among you and the Company, in either
event which breach causes material harm to the Company and has not been cured
within thirty (30) days after a written demand is delivered to you by the Board
which identifies the grounds therefor.

 

f.                                           For purposes hereof, the term “Good Reason” means your termination
of employment with the Company as a result of the following: (i) a
material adverse alteration in the nature or status of your position, duties or
responsibilities with the Company without your prior written consent; or (ii) the
failure of the Company to comply in any material respect with any of its
obligations hereunder or under any other agreements with you which remains
uncured for a period of thirty (30) days following your written notice to the
Company of such failure.

 

6.               CONFIDENTIALITY.

 

a.                                         You will not at any time during or after termination of your
employment with the Company disclose to anyone or make use of, directly or indirectly,
any Confidential Information (as defined below). All records of every nature
and description relating to the Company’s business during your employment,
whether or not prepared by you, shall be and remain the property of the
Company. All records of every nature and description relating to the Company’s
business during your employment shall be left with or delivered to the Company
upon termination of your employment.

 

b.                                        For purposes of this letter agreement, “Confidential Information”
means all information of a confidential or proprietary nature (whether or not
specifically labeled or identified as “confidential”), in any form or medium,
that relates to the Company or its subsidiaries or their business relations and
their respective business activities and includes, without limitation, the
following: (i) internal business information (including historical and
projected financial information and budgets and information relating to strategic
and staffing plans and practices, business, training, marketing, promotional
and sales plans and practices, cost, rate and pricing structures and accounting
and business methods); (ii) identities and individual requirements of, and
specific contractual arrangements with, the Company’s and its subsidiaries’
customers, employees, independent contractors, clearing agencies, joint venture
partners and other business relations and their confidential information; (iii) trade
secrets, know-how, compilations of data and analyses, techniques, systems,
formulae, research, records, reports, manuals, documentation, models, data and
data bases relating thereto; (iv) inventions, innovations, improvements, developments,
methods, designs, analyses, drawings, reports and all similar or related
information (whether or not patentable); and (v) information related to
any and all intellectual and proprietary property and rights and rights in
Confidential 

 

4

 

Information of every kind and
description anywhere in the world, including all (A) patents, patent
applications, patent disclosures and inventions, (B) internet domain
names, trademarks, service marks, trade dress, trade names, logos and corporate
names and registrations and applications for registration thereof together with
all of the goodwill associated therewith, (C) copyrights (registered or
unregistered) and copyrightable works and registrations and applications for
registration thereof, (D) mask works and registrations and applications
for registration thereof, (E) computer software, data, data bases and
documentation thereof, (F) trade secrets and other Confidential
Information (including ideas, formulas, compositions, inventions (whether
patentable or unpatentable and whether or not reduced to practice), know-how,
manufacturing and production processes and techniques, research and development
information, drawings, specifications, designs, plans, proposals, technical
data, copyrightable works, financial and marketing plans and customer and
supplier lists and information), (G) other intellectual property rights
and (H) copies and tangible embodiments thereof (in whatever form or
medium).

 

c.                                         Notwithstanding the provisions of this Section 6,
information shall not be deemed “Confidential Information” for purposes hereof
if such information is (i) in the public domain (other than as a result of
a breach of this Agreement by you), (ii) approved for release by the
Company or (iii) lawfully obtained by you after termination of your
employment with the Company from third parties (other than the Company or any
of its affiliates or any of their respective employees, directors or
representatives) on a non-confidential basis who, to your knowledge, are not
prohibited from disclosing such information to you by a legal, contractual or
fiduciary obligation to the Company or any of its affiliates.

 

7.               NONCOMPETITION; NONSOLICITATION.

 

a.                                         You acknowledge that (i) you are one of the Company’s founders
and that you are familiar with the Company’s trade secrets and with other
confidential information concerning the Company, including the Company’s (A) inventions,
technology and research and development, (B) customers and vendors and
customer and vendor lists, (C) products and services (including those
under development) and related costs and pricing structures, (D) accounting
and business methods and practices, and (E) similar and related
confidential information and trade secrets; (ii) your services have been
and shall continue to be of special, unique and extraordinary value to the
Company and that you have been substantially responsible for the growth and
development of the Company and the creation and preservation of the Company’s
goodwill; and (iii) the Company would be irreparably damaged (including a
significant loss of goodwill) if you were to provide similar services to any
person or entity competing with the Company or engaged in a similar business.
Due to your access to the confidential proprietary information, customer information
and customer relationships and uniqueness of your services to the Company and
the consideration you will receive on termination of your employment as set for
the in Section above, and in consideration of the Company’s other agreements
herein, you agree that for the longer of (x) three (3) years from the
date of the closing of the Company’s initial public offering and (y) the
term of your employment with the Company and a period of one (1) year
after termination of your employment as provided hereunder (the “Noncompetition
Period”), you shall not, directly or indirectly, either for yourself or for any
other individual, corporation, partnership, joint venture or other entity, own
any interest in, manage, control, participate in (whether as an officer, director,
employee, partner, agent, representative or otherwise), consult with or render
services for 

 

5

 

any entity that (in whole or
in part) engages or proposes to engage in, or in any other manner engage, anywhere
in the world, in the business of electronic trading of equity securities as a
broker or dealer intermediary or any other material business conducted by the
Company or any Related Entity during your employment term or proposed to be
conducted by the Company or any Related Entity within the six (6) month
period prior to the termination of your employment; PROVIDED, HOWEVER, that
nothing herein shall prohibit you from being a passive owner of not more than five
percent (5%) of the outstanding stock of any class of a corporation which is
publicly traded so long as you do not have any active participation in the
business of such corporation.

 

b.                                        During the Noncompetition Period, you shall not directly or
indirectly (through any other individual, corporation, partnership, joint venture
or other entity or otherwise) (i) induce or attempt to induce any employee
of the Company or any Related Entity to leave the employ of the Company or any Related
Entity, (ii) hire any person who was an employee of the Company or any Related
Entity at any time during the six (6) month period immediately prior to
the date on which such hiring would take place, or (iii) call on, solicit
or service any customer, supplier, licensee, licensor or other business
relation of the Company or any Related Entity in order to induce or attempt to
induce such person to cease doing business with the Company or any Related
Entity.

 

c.                                         If, at the time of enforcement of the covenants contained in
this Section 7 (the “Restrictive Covenants”), a court shall hold that the
duration, scope or area restrictions stated herein are unreasonable under
circumstances then existing, you agree that the maximum duration, scope or area
reasonable under such circumstances shall be substituted for the stated duration,
scope or area and that the court shall be allowed and directed to revise the
restrictions contained herein to cover the maximum period, scope and area
permitted by law.

 

d.                                        If you breach, or threaten to commit a breach of, any of the
Restrictive Covenants, the Company shall have the right and remedy to have the
Restrictive Covenants specifically enforced by any court of competent
jurisdiction, it being agreed that any breach or threatened breach of the
Restrictive Covenants would cause irreparable injury to the Company and that
money damages would not provide an adequate remedy to the Company.

 

e.                                         In the event of any breach or violation by you of any of the
Restrictive Covenants, the time period of such covenant shall be tolled until
such breach or violation is resolved.

 

8.                  BINDING EFFECT. The terms hereof shall be binding upon and
shall inure to the benefit of you and the Company, the successors and assigns
of the Company, and the heirs, executors, administrators, legal representatives
and assigns of you; PROVIDED THAT your rights and obligations hereunder may not
be delegated or assigned.

 

9.                  ENTIRE
AGREEMENT. This letter agreement shall supersede any former oral agreement and
any former written agreement heretofore executed relating generally to your
employment with the Company, and this letter agreement can only be amended,
altered or terminated and its provisions can only be waived by an agreement in
writing signed by you and the Company.

 

10.            ENFORCEABILITY. This letter agreement
shall be construed and enforced under the laws of the State of New York without
giving effect to the principles of conflicts of laws thereof. If any 

 

6

 

provision of this letter agreement
is held invalid or unenforceable by operation of law or otherwise, such
circumstances shall not have the effect of rendering any of the other provisions
of this letter agreement invalid or unenforceable.

 

By signing below, the Company
agrees to all of the terms and conditions of this letter agreement. Please
indicate your acceptance of these terms and conditions by signing each enclosed
copy of this letter agreement where indicated below, and return an
originally-executed copy of this letter agreement to the undersigned.

 

	
   

  	
  Sincerely yours,

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Liquidnet Holdings, Inc.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
  Robert Young

  
	
   

  	
  Title:

  	
  Chief Operating Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ACCEPTED AND AGREED as of

  	
   

  	
   

  	
   

  
	
  this        day of
                          ,
  2008.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Seth Merrin

  	
   

  	
   

  	
   

  
					

 

7

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