Document:

EX-10.1

 

Exhibit 10.1

August 21, 2006

Mr. T. Kelley Millet

845 U.N. Plaza

Apt 82 B

New York, NY 10017

Re: Terms of Employment

Dear Kelley:

     The purpose of this letter is to confirm the terms and conditions of your employment offer
with MarketAxess Corporation (the “Company”). The Company is pleased to offer you employment in
accordance with the terms of this letter (the “Letter Agreement”).

     1. Title, Term and Duties. Commencing on September 13, 2006, you will be employed by
the Company as its President, and your employment will continue until such employment is terminated
by you or the Company. Notwithstanding anything else herein, your employment with the Company will
be “at-will” and you and the Company retain the right to terminate your employment hereunder at any
time for any reason or no reason. You will have such duties, responsibilities and authority,
commensurate with your position, as may be assigned to you from time to time by the Chief Executive
Officer of the Company. You will report to and follow the lawful directions of the Chief Executive
Officer of the Company.

     While you are employed by the Company, you will devote substantially all of your business time
and efforts to the performance of your duties hereunder and use your best efforts in such
endeavors.

     2. Base Salary, Bonus and Benefits. While you are employed by the Company, the
Company will pay you a base salary at the rate of Three Hundred Thousand Dollars ($300,000.00) per
year, in accordance with the usual payroll practices of the Company.

     You will be eligible to receive an annual bonus subject to, and in accordance with, the
MarketAxess Holdings Inc. 2004 Annual Performance Incentive Plan. Your cash bonus for the calendar
year ending December 31, 2006 will be no less than Two Hundred Thousand Dollars ($200,000.00).
Your cash bonus for the calendar year ending December 31, 2007 will be no less than Five Hundred
Thousand Dollars ($500,000.00). Bonuses will be payable at such times as bonuses are paid to
employees of the Company, but nonetheless prior to March 15 of the succeeding year. Other than as
set forth in Sections 4(a) and 4(b) below, you must be employed by the Company at the time of
payout.

     While you are employed by the Company, you will be entitled to participate, to the extent
eligible thereunder, in all benefit plans and programs, in accordance with the terms thereof in
effect from time to time, as are provided by the Company to senior management of the Company
(including, without limitation, health benefits, life insurance and disability insurance), at a
level commensurate with your position.

     3. Business Expenses. Upon presentation of appropriate documentation, you will be
reimbursed by the Company for reasonable business expenses, in accordance with Company policies
applicable to senior management, in connection with the performance of your duties hereunder.

 

 

     4. Severance/Termination of Employment/Change in Control.

     (a) In the event your employment with the Company pursuant to this Letter Agreement is
terminated outside the Change in Control Protection Period (as defined in Section 4(b)) other than:
(x) by you voluntarily (other than as a result of your resignation for Good Reason); or (y) by the
Company for Cause (as defined in Section 4(d) below), and subject to your execution of a waiver and
general release in substantially the form attached as Appendix A hereto, the Company will:
(i) continue to pay you (or, in the event of your death, your estate) your base salary for a period
of six (6) months following the date of such termination of employment, but off the employee
payroll; (ii) pay you a cash bonus equal to either (x) your 2007 bonus guarantee if termination
occurs before December 31, 2007, or (y) the average of the annual full-year cash bonuses you
received from the Company for up to three (3) completed calendar years prior to termination if
termination occurs after December 31, 2007, provided that such amount shall be pro-rated based on
the number of days you were employed by the Company during the calendar year of termination, in
either case payable in twelve (12) equal semi-monthly installments following the date of such
termination; and (iii) if you (or in the event of your death, your spouse or dependents) elect to
continue health coverage under the Company’s plan in accordance with applicable law, pay your, your
spouse’s and your dependent’s continuation coverage premiums to the extent, and so long as you (or,
in the event of your death, your spouse or dependents) remain eligible for such continuation
coverage under the applicable plan and pursuant to applicable law, but in no event for more than
six (6) months. The continued coverage described in subsection (iii) above may be provided to you
(and/or your dependents): (1) under COBRA through payment of premiums at the active employee rate;
(2) by covering you and your dependents under substitute arrangements; or (3) by providing you with
an amount which, after taxes, is sufficient for you to purchase substantially equivalent benefits
for you and your dependents.

     (b) In the event your employment with the Company pursuant to this Letter Agreement is
terminated by you for Good Reason (as defined in Section 4(e) below) or other than: (x) by you
voluntarily without Good Reason; (y) as a result of your death; or (z) by the Company for Cause, in
any case, within three (3) months prior to, or, on or within eighteen (18) months after, a Change
in Control (as defined in the MarketAxess Holdings Inc. 2004 Stock Incentive Plan) (the “Change in
Control Protection Period”), in lieu of the payments and benefits described in Section 4(a), and
subject to your execution of a waiver and general release in substantially the form attached as
Appendix A hereto, the Company will: (1) continue to pay you (or, in the event of your
death, your estate) your base salary for a period of six (6) months following the date of such
termination of employment, but off the employee payroll; (2) pay you an amount equal to either (i)
your 2007 bonus guarantee if termination occurs prior to December 31, 2007 or (ii) one (1) times
the average of the annual full-year cash bonuses you received from the Company for up to the three
(3) completed calendar years prior to such termination if the termination occurs after December 31,
2007, in either case payable in twelve (12) equal semi-monthly installments following the date of
such termination; and (3) provide you with the benefits described in Section 4(a)(iii) (provided in
any manner described therein) for up to twelve (12) months.

     (c) You will be under no obligation to seek other employment and there will be no offset
against any amounts owing to you under Sections 4(a) and (b) above on account of any remuneration
attributable to any subsequent employment that you may obtain.

     (d) For purposes of this Letter Agreement, “Cause” shall mean your (i) willful misconduct or
gross negligence in the performance of your duties under this Letter Agreement that is not cured by
you within 30 days after your receipt of written notice given to you by the Company, (ii)
conviction of, or plea of guilty or nolo contendere to, a crime relating to the Company or any
affiliate or any felony, or (iii) material breach of this Letter Agreement or any

 

 

other material
written agreement entered into between you and the Company that is not cured by you within 30 days
after your receipt of written notice given to you by the Company.

     (e) For purposes of this Letter Agreement, “Good Reason” shall mean any of the following
events that is not cured by the Company within thirty (30) days after the Company’s receipt of
written notice from you: (i) any reduction in your title, (ii) a material diminution in your
duties, authorities or responsibilities or the assignment to you of duties or responsibilities that
are materially adversely inconsistent with your then position; (iii) a material breach of this
Letter Agreement by the Company; (iv) a requirement by the Company that your principal place of
work be moved to a location more than fifty (50) miles away from its current location; or (v) the
failure of the Company to obtain and deliver to you a reasonably satisfactory written agreement
from any successor to all or substantially all of the Company’s assets to assume and agree to
perform this Letter Agreement. You shall be required to provide the Company with written notice of
your termination of employment for Good Reason no later than forty-five (45) days after the
occurrence of the event that constitutes Good Reason.

     (f) Upon termination of your employment for any reason, the Company will have no obligations
under this Letter Agreement other than as provided above and to pay you: (i) any base salary and/or
bonus you have earned and accrued but remains unpaid as of the date of your termination of
employment; (ii) any unreimbursed business expenses otherwise reimbursable in accordance with the
Company’s policies as in effect from time to time; and (iii) benefits in accordance with the terms
of the applicable plans and programs of the Company.

     5. Reimbursement of Legal Fees. The Company will reimburse you up to Seven Thousand
Five Hundred Dollar ($7,500) for legal fees associated with the review of your employment
documentation.

     6. 280G Excise Tax. In the event that you become entitled to payments and/or
benefits provided by this Letter Agreement or any other amounts or benefits in the “nature of
compensation” (whether pursuant to the terms of this Letter Agreement or any other plan,
arrangement or agreement with the Company, any person whose actions result in a change of ownership
or effective control covered by Section 280G(b)(2) of the Internal Revenue Code of 1986, as amended
(the “Code”) or any person affiliated with the Company or such person) as a result of such change
in ownership or effective control of the Company (collectively the “Company Payments”), and if such
Company Payments will be subject to the tax (the “Excise Tax”) imposed by Section 4999 of the Code
(or any similar tax that may hereafter be imposed by any taxing authority) the amount of any
Company Payments will be automatically reduced to an amount one dollar less than an amount that
would subject you to the Excise Tax; provided, however, that the reduction will occur only if the
reduced Company Payments received by you (after taking into account all applicable federal, state
and local income, social security and other taxes) would be greater than the unreduced Company
Payments to be received by you minus (i) the Excise Tax payable with respect to such Company
Payments and (ii) all other applicable federal, state and local income, social security and other
taxes on such Company Payments.

     7. Restrictive Covenants. You agree to execute the confidential information
agreement (“MarketAxess Confidentiality Statement”) and the intellectual property and
non-competition (the “Proprietary Information and Non-Competition Agreement”) in the form provided
to you by the Company concurrently with your execution of this Letter Agreement.

8. Code Section 409A

     (a) Notwithstanding any provision of this Letter Agreement to the contrary, if you are a
“specified employee” as defined in Section 409A of the Internal Revenue Code of 1986, as amended
(“Code Section 409A”), you will not be entitled to any payments upon a termination

 

 

of your
employment until the earlier of (i) the date which is six months after your termination of
employment for any reason other than death or (ii) the date of your death. The provisions of this
Section 8 will only apply if, and to the extent, required to comply with Code Section 409A.

     (b) If you (or your representative) inform the Company that any provision of this Letter
Agreement would cause you to incur any additional tax or interest under Code Section 409A or any
regulations or Treasury guidance promulgated thereunder, the Company will consider in good faith
reforming such provision, after consulting with and receiving your approval (which will not be
unreasonably withheld); provided that the Company agrees to maintain, to the maximum extent
practicable, the original intent and economic benefit to you of the applicable provision without
violating the provisions of Code Section 409A.

     9. Directors and Officers Liability Insurance. While you are employed by the Company
and while potential liability exists thereafter, the Company will cover you under the Company’s
directors’ and officers’ liability insurance on the same basis as other senior executive officers
of the Company.

     10. Miscellaneous.

     (a) The Company may withhold from any and all amounts payable to you such federal, state,
local and all other taxes as may be required to be withheld pursuant to any applicable laws or
regulations.

     (b) You represent that your execution and performance of this Letter Agreement will not be in
violation of any other agreement to which you are a party. Notwithstanding anything else herein,
this Letter Agreement is personal to you and neither the Letter Agreement nor any rights hereunder
may be assigned by you.

     (c) This Letter Agreement shall be governed by, and construed under and in accordance with,
the internal laws of the State of New York, without reference to rules relating to conflicts of
laws.

     (d) This Letter Agreement contains the entire agreement of the parties relating to the subject
matter hereof, and supersedes in its entirety any and all prior agreements, understandings or
representations relating to the subject matter hereof other than the MarketAxess Confidentiality
Statement and the Proprietary Information and Non-Competition Agreement.

     (e) No modifications of this Letter Agreement will be valid unless made in writing and signed
by the parties hereto.

	 	 	 	 	 
	 	Very truly yours,

MARKETAXESS HOLDINGS INC.

 	 
	 	By:  	/s/ Richard M. McVey	 
	 	 	Richard M. McVey 	 
	 	 	Chief Executive Officer 	 
	 

Accepted and Agreed:

/s/ T. Kelley Millet

T. Kelley Millet<PAGE>
                                                                   EXHIBIT 10.01

                       FIRST AMENDMENT dated as of September 7, 2006 (this
                  "Amendment") to the Five-Year Competitive Advance and
                  Revolving Credit Facility Agreement dated as of September 7,
                  2005 (as amended, supplemented or otherwise modified from time
                  to time, the "Credit Agreement"), among THE HARTFORD FINANCIAL
                  SERVICES GROUP, INC. (the "Company"), HARTFORD LIFE, INC.
                  ("Hartford Life"), the BORROWING SUBSIDIARIES from time to
                  time party thereto, the LENDERS from time to time party
                  thereto and BANK OF AMERICA, N.A., as administrative agent for
                  the Lenders (in such capacity, the "Administrative Agent").

      WHEREAS the Borrowers, the Administrative Agent and the Required Lenders
have agreed, on the terms and subject to the conditions set forth herein, to
amend the Credit Agreement in the manner set forth herein.

      NOW, THEREFORE, in consideration of the above premises and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto hereby agree as follows:

      SECTION 1. Defined Terms. Capitalized terms used and not defined herein
have the meanings given to them in the Credit Agreement (as amended hereby).

      SECTION 2. Amendment to the Credit Agreement. Effective as of the First
Amendment Effective Date (as defined below), the Credit Agreement is hereby
amended as follows:

      (a)   Section 1.01 of the Credit Agreement is amended to add definitions
            of the following terms in appropriate alphabetical order:

      `"Consumer Notes' means fixed, floating and index notes issued by Hartford
Life Insurance Company to retail investors whereby the terms of such notes
require that the net proceeds to Hartford Life Insurance Company be utilized to
purchase a like amount of assets to be held by Hartford Life Insurance Company,
and whereby the instrument issued is a registered security, not an insurance
contract of any type. Each set of Consumer Notes issued on the same date and
which have common terms and a common maturity date is referred to as a tranche
of Consumer Notes.".

      `"First Amendment' means the First Amendment dated as of September 7, 2006
to this Agreement.".

      `"First Amendment Effective Date' means the first date on which the
conditions to effectiveness of the First Amendment were satisfied in accordance
with the terms thereof.".

<PAGE>

                                                                               2

            (b) the definition of "Consolidated Total Debt" in Section 1.01 of
      the Agreement is amended by inserting the following sentence at the end of
      such definition:

      "Consolidated Total Debt shall exclude the aggregate principal amount of
all Consumer Notes outstanding at any time that S&P does not classify the
Consumer Notes as financial leverage of the Company or a Subsidiary".

            (c) clause (c) of Section 5.03 of the Agreement is amended to read
      in its entirety:

            "(c) concurrently with any delivery of financial statements under
      paragraph (a) or (b) above, a certificate of a Financial Officer (A)
      certifying that (1) no Event of Default or Default has occurred or, if
      such an Event of Default or Default has occurred, specifying the nature
      and extent thereof and any corrective action taken or proposed to be taken
      with respect thereto and (2) to such Financial Officer's knowledge, as of
      the date of such certificate, S&P does not classify the aggregate
      principal amount of Consumer Notes as financial leverage of the Company or
      a Subsidiary and (B) setting forth (1) each Standard Letter of Credit and
      Secured Letter of Credit outstanding as of the end of such fiscal year or
      fiscal quarter and (2) each item of Collateral on deposit in each LC
      Security Account, and the Collateral Value thereof, as of the end of such
      fiscal year or fiscal quarter;".

            (d) Article V is amended by inserting the following Section at the
      end of such Article:

      SECTION 5.16. Limitation on Issuance of Consumer Notes. Permit the
aggregate principal amount of Consumer Notes outstanding at any time (a) from
(and including) the First Amendment Effective Date through (but excluding) the
first anniversary of the First Amendment Effective Date, to exceed
$3,000,000,000, (b) from (and including) the first anniversary of the First
Amendment Effective Date through (but excluding) the second anniversary of the
First Amendment Effective Date, to exceed $4,000,000,000, (c) from (and
including) the second anniversary of the First Amendment Effective Date through
(but excluding) the third anniversary of the First Amendment Effective Date, to
exceed $5,000,000,000 and (d) from (and including) the third anniversary of the
First Amendment Effective Date and thereafter, to exceed $6,000,000,000.

            (e) clause (f) of Article VI is amended to read in its entirety:

            "(f) the Company or any Subsidiary shall (i) fail to pay any
      principal or interest, regardless of amount, due in respect of any
      Indebtedness in a principal amount in excess of $100,000,000, when and as
      the same shall become due and payable (and in the case of Consumer Notes,
      such failure shall continue unremedied for ten Business Days) or (ii) fail
      to observe or perform any other term, covenant, condition or agreement
      contained in any agreement or instrument

<PAGE>
                                                                               3

      evidencing or governing any such Indebtedness if the effect of any failure
      referred to in this clause (ii) is to cause, or to permit the holder or
      holders of such Indebtedness or a trustee on its or their behalf (with or
      without the giving of notice, the lapse of time or both) to cause, such
      Indebtedness to become due prior to its stated maturity; provided that,
      for purposes of this clause (f), the failure to pay principal or interest
      in respect of, or observe or perform any other term, covenant, condition
      or agreement applicable to, one tranche of Consumer Notes shall not, in
      and of itself, constitute the failure to pay principal or interest in
      respect of, or observe or perform any other term, covenant, condition or
      agreement applicable to, any other tranche of Consumer Notes;".

      SECTION 3. Representations and Warranties. Each Borrower hereby represents
and warrants to the Administrative Agent and the Lenders that as of the First
Amendment Effective Date and after giving effect hereto:

            (a) this Amendment has been duly authorized, executed and delivered
      by each Borrower, and each of this Amendment and the Credit Agreement (as
      amended hereby) constitutes each Borrower's legal, valid and binding
      obligation, enforceable against it in accordance with its terms.

            (b) No Default or Event of Default has occurred and is continuing.

            (c) all representations and warranties of each Borrower contained in
      the Credit Agreement (as amended hereby) are true and correct in all
      material respects on and as of the date hereof (except with respect to
      representations and warranties expressly made only as of an earlier date,
      which representations were true and correct in all material respects as of
      such earlier date).

            (d) this Amendment and the transactions contemplated hereby (a) do
      not require any action, consent or approval of, registration or filing
      with, or other action by, any Governmental Authority, other than those
      which have been taken, given or made and (b) will not (i) violate (A) any
      provision of any law, statute, rule or regulation (including the Margin
      Regulations) or of the certificate of incorporation or other constitutive
      documents or by-laws of any Borrower, (B) any order of any Governmental
      Authority or (C) any provision of any indenture, agreement or other
      instrument to which any Borrower is a party or by which it or any of its
      property is or may be bound, (ii) be in conflict with, result in a breach
      of or constitute (alone or with notice or lapse of time or both) a default
      under any such indenture, agreement or other instrument or (iii) result in
      the creation or imposition of any Lien upon any property or assets of any
      Borrower.

      SECTION 4. Effectiveness. This Amendment shall become effective as of the
first date (the "First Amendment Effective Date") on which:

            (a) the Administrative Agent shall have received counterparts hereof
      duly executed and delivered by each of the Borrowers and the Required
      Lenders.

<PAGE>
                                                                               4

            (b) the Administrative Agent shall have received such documents and
      certificates as the Administrative Agent may reasonably request relating
      to the organization, existence and good standing of each Borrower, the
      authorization of this Amendment and the transactions contemplated hereby
      and any other legal matters relating to the Borrower, the Loan Documents,
      this Amendment or the transactions contemplated hereby, all in form and
      substance reasonably satisfactory to the Administrative Agent.

            (c) the Administrative Agent shall have received payment of all
      reasonable fees and out-of-pocket expenses, to the extent invoiced, to be
      paid or reimbursed to it by the Borrowers pursuant to the Credit
      Agreement, including those referred to in Section 6.

      SECTION 5. Effect of Amendment. Except as expressly set forth herein, this
Amendment shall not by implication or otherwise limit, impair, constitute a
waiver of, or otherwise affect the rights and remedies of the Lenders or the
Administrative Agent under the Credit Agreement or any other Loan Document, and
shall not alter, modify, amend or in any way affect any of the terms,
conditions, obligations, covenants or agreements contained in the Credit
Agreement or any other Loan Document, all of which are ratified and affirmed in
all respects and shall continue in full force and effect. Nothing herein shall
be deemed to entitle any Borrower to a consent to, or a waiver, amendment,
modification or other change of, any of the terms, conditions, obligations,
covenants or agreements contained in the Credit Agreement or any other Loan
Document in similar or different circumstances. This Amendment shall apply and
be effective only with respect to the provisions of the Credit Agreement
specifically referred to herein. This Amendment shall constitute a Loan
Document. All representations and warranties made by any Borrower herein shall
be deemed made under the Credit Agreement with the same force and effect as if
set forth in full therein. On and after the First Amendment Effective Date, any
reference to the Credit Agreement contained in the Loan Documents shall mean the
Credit Agreement as modified hereby.

      SECTION 6. Expenses. The Borrowers agree to reimburse the Administrative
Agent for its reasonable out-of-pocket expenses in connection with this
Amendment, including the reasonable fees, charges and disbursements of counsel.

      SECTION 7. Governing Law; Counterparts. (a) This Amendment and the rights
and obligations of the parties hereto shall be governed by, and construed and
interpreted in accordance with, the laws of the State of New York.

      (b) This Amendment may be executed by one or more of the parties to this
Amendment on any number of separate counterparts, and all of such counterparts
taken together shall be deemed to constitute one and the same instrument. This
Amendment may be delivered by facsimile or other electronic imaging means of the
relevant executed signature pages hereof.

      SECTION 8. Headings. The headings of this Amendment are for purposes of
reference only and shall not limit or otherwise affect the meaning hereof.

<PAGE>

      IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to
be duly executed and delivered by their duly authorized officers as of the day
and year first above written.

                                    THE HARTFORD FINANCIAL SERVICES
                                    GROUP, INC.,
                                    as Borrower

                                       by /s/ John N. Giamalis
                                          ------------------------------------
                                          Name:  John N. Giamalis
                                          Title: Senior Vice President and
                                                 Treasurer

                                    HARTFORD LIFE, INC.,
                                    as Borrower,

                                       by /s/ John N. Giamalis
                                          ------------------------------------
                                          Name:  John N. Giamalis
                                          Title: Senior Vice President and
                                                 Treasurer

                                    BANK OF AMERICA, N.A.,
                                    as LC Issuer, Administrative Agent
                                    and a Lender,

                                       by /s/ Jason Cassity
                                          ------------------------------------
                                          Name:  Jason Cassity
                                          Title: Vice President

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