Document:

EX-10.1: EMPLOYMENT AGREEMENT

 

EXHIBIT 10.1

EMPLOYMENT AGREEMENT

     
EMPLOYMENT AGREEMENT dated as of January 8,
2004 by and between NYMEX HOLDINGS, INC. and NEW YORK MERCANTILE
EXCHANGE, INC. each having its principal place of business at
One North End Avenue, New York, New York 10282
(collectively, the “Company”), and Madeline Boyd (the
“Employee”) an individual residing at 146 West
83rd Street, Apartment 4H, New York,
New York 10024.

     
WHEREAS, the parties wish to state the terms on
which the Employee is employed by the Company;

     
NOW, THEREFORE, in consideration of the mutual
covenants, representations and acknowledgements contained in
this Agreement, the parties agree as follows:

     
1. Term. The Company hereby employs
the Employee, and the Employee hereby accepts such employment,
for a term commencing on January 8, 2004, and ending on
January 8, 2007, unless sooner terminated in accordance
with the provision of Section 4 or Section 5 (the
“Initial Term”). There shall be no extension of this
Agreement other than by written instrument executed by both
parties hereto. If Company seeks to extend the Agreement,
Company and Employee shall make good faith efforts to negotiate
an extension of this Agreement no later than sixty
(60) days prior to the expiration of the Initial Term. Any
such renewal of this Agreement shall be referred to herein as an
“Extension Term”. The period during which the Employee
is employed hereunder, including the Initial Term and any
Extension Term, shall be hereinafter referred to as the
“Term”.

     
2. Duties. During the Term, the
Employee shall be employed by the Company in the positions of
Senior Vice President, Government, Community and Philanthropic
Affairs and President of the NYMEX Charitable Foundation and, as
such, the Employee shall faithfully perform for the Company the
duties of said office and shall perform such other duties
appropriate and consistent to such positions, as shall be
reasonably specified and designated from time to time by the
Company. In the performance of her duties, Employee shall have
reporting obligation to the President of the Company or his
designee. The Employee shall devote substantially all of her
business time and effort to the performance of her duties
hereunder. The Employee shall conduct duties primarily from
New York City, New York. The Company acknowledges that
Employee’s title and position of Senior Vice President,
Government, Community and Philanthropic Affairs and President of
the NYMEX Charitable Foundation shall be an officer position
pursuant to the by-laws of the Company. The Company and the
Employee acknowledge that the “officer status” of the
Employee’s title and position is subject to Company’s
Board of Directors (the “Board”) approval. Employee
will be notified of the Board’s decision, in writing,
within five (5) days of its decision. In the event that the
Board of Directors denies said “officer status” then
the parties acknowledge and agree that this Agreement shall be
deemed null and void from the inception and the parties shall
have no further obligation to one another.

     
3. Compensation.

     
3.1 Salary. The Company shall pay the
Employee during the Term a salary at the rate of
$225,000.00 per year (the “Annual Salary”). The
Employee’s salary will be reviewed at such times and in
such manner as reviews given to employees in similar positions
as the Employee.

     
3.2 Bonus. In addition to the Annual
Salary for each calendar year ending during the Term of this
Agreement, the Employee will be eligible to receive an annual
bonus (the “Annual Bonus”) in the sole discretion of
the Company. Any such bonus shall be paid at such times and in
such manner as bonuses given to employees in similar positions
as the Employee.

     
3.3 Appropriate Staffing. The Company
shall provide, in its discretion, the Employee with staff and
other support services appropriate for her responsibilities and
position.

     
3.4 Benefits. The Employee shall be
permitted during the Term to participate in any group life,
hospitalization or disability insurance plans, health programs,
retirement plans, fringe benefit programs and

 

similar benefits that may be available to other
employees of the Company (in similar officer positions)
generally, on the same terms as such other employees, in each
case to the extent that the Employee is eligible under the terms
of such plans or programs. The Employee shall be entitled to
four (4) weeks vacation per calendar year in accordance
with Company policy, provided, however, that notwithstanding
such vacation policy Employee shall be credited with four
(4) weeks vacation time for calendar year 2004 upon the
effective date of this Agreement.

     
3.5 Expenses. During the Term hereof,
the Employee shall be entitled to receive prompt reimbursement
for all reasonable expenses incurred by her in performing her
duties hereunder in accordance with the policies and procedures
of the Company.

     
4. Termination upon Death or
Disability. If the Employee dies during the Term, the Term
shall terminate as of the date of death, and the obligations of
the Company to or with respect to the Employee shall terminate
in their entirety upon such date except as otherwise provided
under this Section 4. If the Employee by virtue of ill
health or other disability is unable (including with reasonable
accommodation) to perform substantially and continuously the
duties assigned to her for more than 180 consecutive or
non-consecutive days out of any consecutive 12-month period, the
Company shall have the right to the extent permitted by law, to
terminate the employment of the Employee upon ten
(10) days’ notice in writing to the Employee. Upon
termination of employment due to death or disability, in
addition to any insurance benefits that may be payable, the
Employee (or the Employee’s estate or beneficiaries in the
case of the death of the Employee) shall be entitled to become
fully vested in Company’s 401K and deferred
compensation plans, provided, in the case of disability,
Employee meets the definition of disability under such plans,
and shall receive any Annual Salary, Annual Bonus and other
benefits earned and accrued under this Agreement prior to the
date of termination (and reimbursement under this Agreement for
expenses incurred prior to the date of termination). In the
event that Employee is terminated as a result of disability, the
Employee shall receive continuing medical coverage or cash in
lieu of such coverage for the remainder of the Term. Nothing
herein shall prevent or limit the Employee’s continuing or
future participation in or coverage under any disability,
health, salary continuation or other benefit plans or policies
provided or maintained by the Company in accordance with
Company’s policy and applicable law.

     
5. Certain Terminations of Employment.

     
5.1 Termination for Cause;

		
	 	     
    (a) For purposes of this Agreement,
    “Cause” shall mean the Employee’s:
    

		
	 	     
    (i) commission of a felony, or commission of
    any other crime that involves dishonesty or breach of trust, or
    moral turpitude;
    
	 
	 	     
    (ii) violation involving dishonesty, breach
    of trust or bad faith of any statute, regulation or rule in the
    areas of commodities or securities regulation;
    
	 
	 	     
    (iii) deliberate misconduct, willful
    dereliction of duty, fraud, misappropriation or embezzlement;
    
	 
	 	     
    (iv) failure to devote substantially all of
    her business time and efforts to the Company (other than any
    such failure resulting from incapacity due to physical or mental
    illness) and failure to cure such breach within ten business
    days following the Employee’s receipt of written notice
    from the Company specifying such breach;
    
	 
	 	     
    (v) breach of any of the provisions of
    Section 7; or
    
	 
	 	     
    (vi) any other breach in any material
    respect of the terms and provisions of this Agreement and
    failure to cure such breach within ten business days following
    the Employee’s receipt of written notice from the Company
    specifying such breach.
    

		
	 	     
    (b) The Company may terminate the
    Employee’s employment hereunder for Cause upon a minimum of
    ten (10) day’s notice to the Employee at anytime by
    delivering to the Employee a written termination notice
    specifying in detail the grounds for termination.
    

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    (c) In addition, the Company may terminate
    the Employee’s employment for any reason at any time
    subject to the provisions in 5.1(f).
    
	 
	 	     
    (d) The Employee may terminate her
    employment for Good Reason on at least ten (10) days’
    written notice given to the Company. For purposes of this
    Agreement, “Good Reason” shall mean:
    

		
	 	     
    (i) A breach by the Company in any material
    respect of the terms of this Agreement and failure to cure such
    breach within ten (10) business days following the
    Company’s receipt of written notice from the Employee
    specifying such breach;
    
	 
	 	     
    (ii) the relocation of the Company’s
    principal executive offices (and the Employee’s workplace)
    outside of the New York City metropolitan area; or
    
	 
	 	     
    (iii) the assignment to the Employee of any
    duties inconsistent in any respect with those customarily
    associated with the positions to be held by the Employee, or any
    other action by the Company that results in a diminution or
    other material adverse change in the Employee’s position,
    duties or responsibilities.
    

		
	 	     
    (e) If the Company terminates the Employee
    for Cause, (i) the Employee shall be entitled to receive
    Annual Salary, and other benefits (but, in all events, and
    without increasing the Employee’s rights under any other
    provision hereof,) earned and accrued under this Agreement prior
    to the termination of employment, including, a pro rata share of
    any Annual Bonus granted prior thereto (and reimbursement under
    this Agreement for expenses incurred prior to the termination of
    employment), and (ii), the Employee shall have no further rights
    to any other compensation or benefits hereunder on or after the
    termination of employment, or any other rights hereunder.
    
	 
	 	     
    (f) If the Company terminates the Employee
    for reasons other than Cause or the Employee terminates her
    employment for Good Reason the Employee shall be entitled to
    receive within ten (10) business days following the date of
    termination: (i) a lump sum payment in the aggregate amount
    of any unpaid portions of Annual Salary, Annual Bonus, and any
    other benefits (including, without limitation, all group health,
    disability, life insurance, pension and other benefits available
    to the Employee as of the termination date in accordance with
    Company policy and applicable law) accrued prior to the
    termination date and remaining through the Initial Term or any
    Extension Term, as the case may be, that would have been paid
    had termination of the Agreement not occurred, it being agreed
    that remaining unpaid portions of Annual Salary and Annual Bonus
    through the Initial Term or any Extension Term shall be
    accelerated provided, however, that in no case shall Employee be
    paid less than 100% of her Annual Salary plus any unpaid Annual
    Bonus granted prior to such termination; (ii) payment , in
    such manner as determined by Employee in accordance with the
    terms of the plan, of any base salary that was deferred pursuant
    to the Company’s deferred compensation plan;
    (iii) (iv) treatment as having completed a minimum of
    eleven-and-one-half (11 1/2) years of continuous service to
    the Company in addition to any employment period completed
    pursuant to this Agreement for purposes of participation in the
    Company’s, post-retirement benefits and stock option plans
    established during the Term of this Agreement, if any and if
    permissible under law or regulation and (v) continuing
    medical coverage or cash in lieu of such coverage for the
    remainder of the Term or until the Employee’s commencement
    of full-time employment and receipt of health coverage,
    whichever is less.
    
	 
	 	     
    (g) If the Company elects not to renew this
    Agreement, the Employee shall be entitled to receive the
    following benefits: (i) payment of any salary in accordance
    with the terms of the plan that was deferred pursuant to the
    Company’s deferred compensation plan; (ii) treatment
    as having completed a minimum of eleven-and-one-half
    (11 1/2) years of continuous service to the Company in
    addition to any employment period completed pursuant to this
    Agreement for purposes of participation in the Company’s
    post-retirement benefits, and stock option plans established
    during the Term of this Agreement, if any and if permissible
    under law or regulation, (iii) continuing medical coverage
    or cash in lieu of such coverage for a period of twelve
    (12) months or until the Employee commences full-time
    employment, whichever is less, and (iv) a severance payment
    of twenty-nine (29) weeks of salary.
    

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6. Directors & Officers
Insurance and Indemnification.

     
The Employee shall be entitled to indemnification
and defense in connection with the performance of her duties
under this Agreement and any Directors and Officers Liability
Insurance maintained by the Company on the same terms and
conditions as generally available to her peer executives at the
Company and in accordance with the relevant by-law(s) The
Company’s obligations to indemnify and defend the Employee
shall survive the termination of the Term and this Agreement in
accordance with the applicable indemnity policy and Directors
and Officers Liability Insurance maintained by the Company on
behalf of its directors and officers.

     
7. Covenants of the Employee.

     
7.1 Covenant Against Competition; Other
Covenants. The Employee acknowledges that (i) the
principal business of the Company (which expressly includes for
purposes of this Section 7, its successors and assigns, any
holding or parent company and the direct and indirect
subsidiaries of the Company, its successors and assigns and any
such holding or parent company) is the operation of an exchange
for the trading of futures and options contracts, risk
management or other derivative instruments on commodities in the
energy and metals sectors (such business, together with the
trading of any other futures or options contracts that may in
the future during the pendency of Employee’s employment be
listed by the Company or any entity that is then an affiliate of
the Company, herein being collectively referred to as the
“Business”); (ii) the Company is one of the
limited number of entities that have developed such a Business;
(iii) the Company’s Business is, in part, national in
scope; (iv) the Employee’s work for the Company will
give her access to certain confidential, proprietary information
of the Company; (v) the covenants and agreements of the
Employee contained in this Section 7 are essential to the
business and goodwill of the Company; and (vi) the Company
would not have entered into this Agreement but for the covenants
and agreements set forth in this Section 7. Accordingly,
the Employee covenants and agrees that:

		
	 	     
    (a) The Employee covenants and agrees that
    during the term of her employment or if she leaves the employ of
    the Company during the applicable Restricted Period (as
    hereinafter defined) she shall not in the continental United
    States, directly or indirectly, (i) engage in any material
    element of the Business, (ii) render any services to any
    person, corporation, partnership or other entity (other than the
    Company or its affiliates) engaged in any material element of
    the Business, or (iii) become interested in any such
    person, corporation, partnership or other entity (other than the
    Company or its affiliates) as a partner, shareholder, principal,
    agent, employee, consultant or in any other relationship or
    capacity; provided, however, that, notwithstanding the
    foregoing, the Employee may invest in securities of any entity,
    solely for investment purposes and without participating
    directly in the business thereof, if (A) such securities
    are traded on any national securities exchange or the National
    Association of Securities Dealers, Inc. Automated Quotation
    System, (B) the Employee is not a controlling person of, or
    a member of a group which controls, such entity and (C) the
    Employee does not, directly or indirectly, own 1% or more of any
    class of securities of such entity. As used in this Agreement,
    the “Restricted Period” means the period beginning on
    the date of this Agreement and ending (x) if the
    Employee’s employment is terminated by the Company for
    Cause, six months after the date of termination; and (y) if
    the employment is terminated voluntarily by her, by Employee for
    Good Reason or if the employment is terminated by the Company
    without Cause, one year after the date of termination.
    Notwithstanding the foregoing, Employee may during the
    applicable Restricted Period (i) be employed or conduct
    business as a Floor Member on the Company’s trading floor,
    or (ii) render services to Gregory Boyd, Employee’s
    brother and a current Floor Member of the Company, with respect
    to his business as a Floor Member provided such services are not
    similar to such duties performed by Employee during the Term of
    this Agreement.
    
	 
	 	     
    (b) The Employee shall keep secret and
    retain in strictest of confidence, and shall not use for her
    benefit or the benefit of others, except in connection with the
    business and affairs of the Company and its affiliates, all
    confidential matters relating to the Company’s Business and
    the business of any of its affiliates and to the Company and any
    of its affiliates, including but not limited to strategies,
    records, documents, technical information concerning its
    products and pricing techniques, learned by the Employee
    heretofore or hereafter directly or indirectly from the Company
    or any of its affiliates (the
    

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    “Confidential Company Information”),
    and shall not disclose such Confidential Company Information to
    anyone outside of the Company except with the Company’s
    express written consent and except for Confidential Company
    Information which is at the time of receipt or thereafter
    becomes publicly known through no wrongful act of the Employee
    or is received from a third party not under an obligation to
    keep such information confidential and without breach of this
    Agreement. Notwithstanding the foregoing, with respect to all
    Confidential Company Information disclosed that constitutes a
    trade secret under applicable law, such confidentiality
    obligations will survive until the later of (i) such
    Confidential Company Information no longer constitutes a trade
    secret under applicable law or (ii) two years after the
    date of initial disclosure to Employee.
    
	 
	 	     
    (c) During the Restricted Period, the
    Employee shall not, without the Company’s prior written
    consent, directly or indirectly, (i) solicit or encourage
    to leave the employment or other service of the Company, or any
    of its affiliates, any employee or independent contractor
    thereof or (ii) hire (on behalf of the Employee or any
    other person or entity) any employee or independent contractor
    who has left the employment or other service of the Company or
    any of its affiliates within the six-month period which follows
    the termination of such employee’s or independent
    contractor’s employment or other service with the Company
    and its affiliates. During the Restricted Period, the Employee
    will not, whether for her own account or for the account of any
    other person, firm, corporation or other business organization,
    intentionally interfere with the Company’s or any of its
    affiliates’ relationship with, or endeavor to entice away
    from the Company or any of its affiliates, any person who during
    the Term is or was a customer or client of the Company or any of
    its affiliates. During the Restricted Period, the Employee shall
    not publish any statement or make any statement under
    circumstances reasonably likely to become public that is
    critical of the Company or any of its affiliates, or in any way
    adversely affecting or otherwise maligning the business or
    reputation of the Company or any of its affiliates, except if
    testifying truthfully under oath pursuant to any lawful court
    order or subpoena or otherwise responding to or providing
    disclosures required by law.
    
	 
	 	     
    (d) All memoranda, notes, lists, records,
    property and any other tangible product and documents (and all
    copies thereof), whether visually perceptible, machine-readable
    or otherwise, made, produced or compiled by the Employee or made
    available to the Employee concerning the business of the Company
    or its affiliates, (i) shall at all times be the property
    of the Company (and, as applicable, any affiliates) and shall be
    delivered to the Company at any time upon its request, and
    (ii) upon the Employee’s termination of employment,
    shall be immediately returned to the Company.
    

     
7.2 Rights and Remedies upon Breach.

     
The Employee acknowledges and agrees that any
breach by her of any of the provisions of Section 7.1 (the
“Restrictive Covenants”) would result in irreparable
injury and harm for which money damages would not provide an
adequate remedy. Therefore, if the Employee breaches, or
threatens to commit a breach of, any of the provisions of
Section 7.1, the Company and its affiliates shall have the
following rights and remedies, each of which rights and remedies
shall be independent of the others and severally enforceable,
and all of which rights and remedies shall be in addition to,
and not in lieu of, any other rights and remedies available to
the Company and it affiliates under law or in equity (including,
without limitation, the recovery of damages):

		
	 	     
    (i) The right and remedy to have the
    Restrictive Covenants specifically enforced (without the need to
    prove damages) by any court having equity jurisdiction,
    including, without limitation, the right to any entry against
    the Employee of restraining orders and injunction (preliminary,
    mandatory, temporary and permanent) against violations,
    threatened or actual, and whether or not then continuing, of
    such covenants; and
    
	 
	 	     
    (ii) The right and remedy to require the
    Employee to account for and pay over to the Company and its
    affiliates all compensation, profits, monies, accruals,
    increments or other benefits (collectively,
    “Benefits”) derived or received by her as the
    proximate result of any actions constituting a breach of the
    Restrictive Covenants, and the Employee shall account for and
    pay over such Benefits to the Company and, if applicable, its
    affected affiliates.
    

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    (iii) The Employee agrees that in any action
    seeking specific performances or other equitable relief, she
    will not assert or contend that any of the provisions of this
    Section 7 are unreasonable or otherwise unenforceable. The
    existence of any claim or cause of action by the Employee,
    whether predicated on this Agreement or otherwise, shall not
    limit the Company’s right to enforce the Restrictive
    Covenants.
    

     
8. Discoveries and Works.

     
(a) All Discoveries and Works made or
conceived by Employee during her employment by Company, solely,
jointly or with others, that relate to the Company’s
Business (as defined in Paragraph 7.1) shall be owned by
Company. The term “Discoveries and Works” includes by
way of example but without limitation, trade secrets and
Confidential Company Information, trade and service mark
registrations and applications, patents and patent applications,
trade names, copyrights and copyright registrations and
applications. The Employee shall (a) promptly notify, make
full disclosure to, and execute and deliver any documents
requested by Company, as the case may be, to evidence or better
assure title to Discoveries and Works in Company, as so
requested, (b) renounce any and all claims, including but
not limited to claims of ownership and royalty, with respect to
all Discoveries and Works and all other property owned or
licensed by Company, (c) assist Company in obtaining or
maintaining for itself at its own expense United States and
foreign patents, trade mark and service mark registrations,
copyrights, trade secret protection or other protection of any
and all Discoveries and Works, including, but not limited to,
executing all papers deemed necessary by Company for filing such
applications, prosecuting them and assigning to Employer all his
rights to said Discoveries and Works, and (d) promptly
execute, whether during her employment with Company or
thereafter, all applications or other endorsements necessary or
appropriate to protect the title of Company thereto, including
but not limited to assignments of such rights. Any Discoveries
and Works which, within six (6) months after the expiration
or termination of the Employee’s employment with Company,
are made, disclosed, reduced to tangible or written form or
description, or are reduced to practice by the Employee and
which pertain to the business carried on or products or services
being sold or delivered by Company at the time of such
termination shall, as between the Employee and Company, be
presumed to have been made during the Employee’s employment
by Company. The Employee acknowledges that all Discoveries and
Works shall be deemed “works made for hire” under the
Copyright Act of 1976, as amended 17 U.S.C. Sect. 101.
Notwithstanding the foregoing, Employee agrees that, to the
extent, if any, that Employee may be deemed an
“author” and/or to have any ownership interest in and
to the Discoveries and Works, Employee hereby grants and assigns
to the Company, exclusively, perpetually and throughout the
universe, all exclusive rights, title and interest in and to the
Discoveries and Works or any portions thereof, including, but
not limited to, all the exclusive rights of a copyright owner as
specified in 17 U.S.C. Section 106. Company agrees
that if it does not desire a Discovery or Work made by the
Employee it will give the Employee, at her request, a statement
to such effect signed by one of Company’s officers. The
decision as to whether to file any patent, copyright, trademark
or other similar applications or registrations relating to the
Discoveries and Works shall be within the Company’s sole
discretion. The Employee will not file any patent, copyright,
trademark or similar application or registration relating to the
Discoveries and Works without first obtaining an express written
release from an officer of the Company.

     
(b) Notwithstanding the foregoing, nothing
in this Agreement shall be interpreted as including as
“Discoveries and Works” any inventions, patents,
patent applications and registrations, technologies,
developments, trade names, copyrights and copyright
registrations and applications which were invented and developed
by Employee after the termination date of this Agreement.

     
8A. Employee has represented and hereby
represents and warrants to the Company that the execution,
delivery and performance by Employee of this Agreement does not
conflict with or result in a violation of, a breach of, or
constitute a default under any contract, agreement or
understanding, whether oral or written, to which Employee is a
party or of which Employee is or should be aware and that there
are no restrictions, covenants, agreements or limitations on her
right or ability to enter into and perform the terms of this
Agreement.

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9. Other Provisions.

     
9.1 Severability. The Employee
acknowledges and agrees that (i) she has had an opportunity
to seek advice of counsel in connection with this Agreement and
(ii) the Restrictive Covenants are reasonable in
geographical and temporal scope and in all other respects. If it
is determined that any of the provisions of this Agreement,
including, without limitation, any of the Restrictive Covenants,
or any part thereof, is invalid or unenforceable, the remainder
of the provisions of this Agreement shall not thereby be
affected and shall be given full effect, without regard to the
invalid portions.

     
9.2 Duration and Scope of Covenants.
If any court or other decision-maker of competent jurisdiction
determines that any of the Employee’s covenants contained
in this Agreement, including, without limitation, any of the
Restrictive Covenants, or any part thereof, is unenforceable
because of the duration or geographical scope of such provision,
then, after such determination has become final and
unappealable, the duration or scope of such provision, as the
case may be, shall be reduced so that such provision becomes
enforceable and, in its reduced form, such provision shall then
be enforceable and shall be enforced.

     
9.3 Enforceability; Jurisdiction;
Attorney’s Fees. The Company and the Employee intend to
and hereby consent and confer jurisdiction to enforce this
Agreement, including but not limited to the Restrictive
Covenants set forth in Section 7, on any Federal or State
court sitting in the State of New York. The parties hereby
agree to waive any right to a trial by jury for any and all
disputes hereunder (whether or not relating to the Restrictive
Covenants) and that all proceedings shall take place and be
litigated in the State of New York.

     
9.4 Notices. Any notice or other
communication required or permitted hereunder shall be in
writing and shall be delivered personally, or sent by certified,
registered or express mail, postage prepaid. Any such notice
shall be deemed given when so delivered personally or, if
mailed, five days after the date of deposit in the United States
mails as follows:

	 	 	 
	
    (i)
    	 	
    If to the Company, to:

    New York Mercantile Exchange, Inc.

    One North End Avenue

    New York, New York 10282

    Attention: General Counsel
    
	 
	
    (ii)
    	 	
    If to the Employee, to her at:

    146 West 83rd Street, Apartment 4H

    New York, New York 10024
    

Any such person may by notice given in accordance
with this Section 9.4 to the other parties hereto designate
another address or person for receipt by such person of notices
hereunder.

     
9.5 Entire Agreement. This Agreement
contains the entire agreement between the parties with respect
to the subject matter hereof and supersedes all prior
agreements, written or oral, with respect thereto.

     
9.6 Waivers and Amendments. This
Agreement may be amended, superseded, canceled, renewed or
extended, and the terms hereof may be waived, only by a written
instrument signed by the parties or, in the case of waiver, by
the party waiving compliance. No delay on the part of any party
in exercising any right, power or privilege hereunder shall
operate as a waiver thereof, nor shall any waiver on the part of
any party of any such right, power or privilege nor any single
or partial exercise of any such right, power or privilege,
preclude any other or further exercise thereof or the exercise
of any other such right, power or privilege.

     
9.7 GOVERNING LAW. THIS AGREEMENT
SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS
OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF
CONFLICT OF LAW.

     
9.8 Assignment. This Agreement and
the Employee’s rights and obligations hereunder may not be
assigned by the Employee; any purported assignment by the
Employee in violation hereof shall be null and void. In the
event of any sale, transfer or other disposition of all or
substantially all of the Company’s assets or business, or
any transaction resulting in the sale of fifty percent (50%) or
more of the outstanding common stock of the Company, whether by
merger, consolidation, initial public offering, or otherwise
(together

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referred to herein as a “Change in
Control”), the Company may assign this Agreement and its
rights hereunder.

     
9.9 Withholding. The Company shall be
entitled to withhold from any payments or deemed payments any
amount of tax withholding it determines to be required by law.

     
9.10 Binding Effect. This Agreement
shall be binding upon and inure to the benefit of the parties
and their respective successors, permitted assigns, heirs,
executors and legal representatives.

     
9.11 Counterparts. This Agreement may
be executed by the parties hereto in separate counterparts, each
of which when so executed and delivered shall be an original but
all such counterparts together shall constitute one and the same
instrument. Each counterpart may consist of two copies hereof,
each signed by one of the parties hereto.

     
9.12 Survival. Anything contained in
this Agreement to the contrary notwithstanding, the provisions
of Sections 7, 8, 8A, 9.1, 9.2, 9.3, 9.5, 9.7, and 9.9 and
the other provisions of this Section 9 (to the extent
necessary to effectuate the survival of Sections 7, 8, 8A,
9.1, 9.2, 9.3, 9.5, 9.7, and 9.9), shall survive termination of
this Agreement, and any termination of the Employee’s
employment hereunder.

     
9.13 Headings. The headings in this
Agreement are for reference only and shall not affect the
interpretation of this Agreement.

     
9.14 Costs of Litigation. In any
legal proceeding brought for enforcement or interpretation of
this Agreement, the prevailing party, in addition to any other
remedies available to it, shall be entitled to recover from the
other party its reasonable legal fees and expenses incurred in
the proceeding, and the costs of investigation and preparation.

     
9.15 No Mitigation; No Offset. In the
event of any termination of the Employee’s employment under
this Agreement, except in the case of Employee’s
termination for Cause, whether by the Company or the Employee,
the Employee shall be under no obligation to seek other
employment and there shall be no offset against any amounts due
to the Employee under this Agreement on account of any
remuneration attributable to any subsequent employment income or
any other income that the Employment may earn or receive from
whatever source.

     
IN WITNESS THEREOF, the parties hereto have
signed their names as of the day and year first written.

	 	 	 
	
    
    NEW YORK MERCANTILE EXCHANGE, INC.
    

    	 	
    EMPLOYEE
    
	 
	
    By: /s/ J. ROBERT
    COLLINS, JR.
 Name: J. Robert
    Collins, Jr.
    	 	
    By: /s/ MADELINE BOYD

    Name: Madeline Boyd
    
	Title:  President
	 
	
    NYMEX HOLDINGS, INC.
    	 	 
	 
	
    By: /s/ J. ROBERT
    COLLINS, JR.
 Name: J. Robert
    Collins, Jr.
    	 	 
	Title:  President

8EX-10.2: ADVISOR SERVICES AGREEMENT

 

EXHIBIT 10.2

ADVISOR SERVICES AGREEMENT

     
WHEREAS, this
Advisor Services Agreement (“Agreement”) is entered
into as of March 17, 2004 (“Effective Date”)
between Vincent Viola (“Advisor”), an individual
having his principal place of business at 34 Chandler Road,
Chatham, NJ 07928 and NYMEX Holdings, Inc. (“NYMEX”),
a Delaware corporation having its principal place of business at
One North End Avenue, New York, NY 10282 (Advisor and NYMEX
are collectively referred to herein as the “Parties”
and individually as a “Party”).

     
WHEREAS, Advisor has
had a longstanding relationship with NYMEX and has served as
Chairman of the Board for the past three years;

     
WHEREAS, Advisor
possesses unique expertise, acumen and contacts which have
proven invaluable to NYMEX’s business;

     
WHEREAS, NYMEX
desires to continue to have access to Advisor’s skills and
knowledge following the completion of his service as Chairman;

     
WHEREAS, NYMEX
wishes to utilize Advisor’s services and abilities to
perform the Scope of Work set forth below during the term of
this Agreement and any extension thereof; and

     
WHEREAS, Advisor is
willing to render such consulting services to NYMEX upon the
terms and conditions contained in this Agreement.

     
NOW THEREFORE, in
consideration of the promises contained herein, the Parties
agree as follows:

     
1. Scope of Work

     
Advisor shall perform the services
(“Services”), as set forth in greater detail in the
attached Exhibit A, according to the terms and
conditions of this Agreement. Exhibit A is hereby
incorporated and made a part of this Agreement. The
acceptability of any of the Services shall be based on
NYMEX’s satisfaction or dissatisfaction with the Services
in NYMEX’s reasonable discretion, such discretion to be
exercised in accordance with the prior dealings between the
parties.

     
2. Period of Agreement. This
Agreement shall commence on the Effective Date and will continue
for a period of three (3) years, unless terminated earlier
in accordance with Article 4 hereof, or unless renewed by
mutual agreement of the parties.

     
3. Relationship Between the Parties

     
A. Advisor acknowledges and agrees that
Advisor has been retained solely as an independent contractor in
a temporary capacity and not as an agent or employee of NYMEX.
Nothing in this Agreement shall be construed to create a
partnership, joint venture, or agency relationship between the
Parties. Advisor is not authorized to enter into contracts or
agreements on behalf of NYMEX or to otherwise create obligations
of NYMEX to third parties.

     
B. Advisor shall be solely responsible for
the payment to any of its employees of compensation, expenses,
and benefits associated with employment, workers’
compensation payments, state disability insurance and claims,
and unemployment, social security and other payroll taxes, as
applicable.

     
C. Compensation payable by NYMEX to the
Advisor under this Agreement is not intended to constitute
“wages” for purposes of federal or state withholding
taxes, social security payments, insurance contributions,
unemployment taxes or other similar payments and the Advisor
shall be solely responsible for all liabilities arising
therefrom.

     
4. Termination

     
A. Subsequent to the first twelve
(12) months of the Effective Date, either Party may
terminate this Agreement at any time for any reason or no reason
upon not less than ninety (90) days’ prior written
notice.

 

     
B. Notwithstanding anything in this
Agreement to the contrary, NYMEX may terminate the Agreement at
any time upon not less than five (5) days’ prior
notice in the event of Advisor’s breach of his non-compete
obligations (as set forth in Article 12) or his
confidentiality obligations (as set forth in Article 5 and
Exhibit B).

     
C. In the event that either Party breaches a
material provision of this Agreement, and such breach remains
uncured on the date ten (10) business days after receipt by the
breaching party of notice thereof, the non-breaching Party shall
have all rights and remedies available in law or equity
(including, without limitation, the right to terminate this
Agreement).

     
D. Except as specifically provided otherwise
in this Agreement, in the event of the termination of this
Agreement by NYMEX prior to the expiration of the term set forth
in Article 2 above, NYMEX will remain liable to the Advisor
solely for payment of all approved expenses and all payments due
to Advisor, pursuant to Exhibit A, for Services rendered by
the Advisor through the effective date of such termination.

     
5. Confidential Information. Advisor
agrees to execute and abide by the Non-Disclosure Agreement set
forth in Exhibit B to this Agreement.

     
6. Disclosure of Inventions &
Ownership of Plans

     
A. Any and all original reports, analyses
and other documentation provided by Advisor in connection with
the Services (“Documentation”) or any deliverable
prepared by Advisor in connection with the performance of the
Services shall become the exclusive property of NYMEX, including
any trademark or copyright rights and other tangible or
intangible rights attaching thereto.

     
B. Advisor agrees to disclose promptly in
writing to NYMEX any and all inventions, improvements,
discoveries and copyrightable material, computer programs,
processes, manufacturing techniques, trade secret formula or
know how, patentable or unpatentable, copyrightable or
uncopyrightable, protectable or unprotectable under any form of
legal protection afforded to intellectual property, that Advisor
may conceive, make, develop, author or work on in whole or in
part, solely or jointly with others, in relation to the
performance of the Services.

     
7. Covenants and Warranties by Both
Parties

     
A. Each party represents to the other that
its execution of this Agreement, and the performance of its
obligations hereunder, will not violate any statute, regulation,
order, judgment or decree to which such party is subject or by
which it is bound.

     
B. Each party represents to the other that
it has obtained all required authorizations and approvals
necessary for it to execute this Agreement and fully perform its
obligations hereunder.

     
8. Additional Covenants and Warranties by
Advisor

     
A. Services. Advisor covenants and
agrees that Advisor shall perform the Services in a professional
and diligent manner in accordance with the standards generally
followed by equally qualified, competent and experienced
consultants in the United States at the time of performance.

     
B. Conflicts. In addition to the
obligations set forth in Article 12 below, Advisor represents
and warrants that it shall not act as an agent for, consultant
to, or as an officer, employee, or other representative of any
of NYMEX’s competitors or prospective competitors; provided
that the aforesaid representation and warranty shall only apply
to the trading of energy and metals (or any other products of an
exchange which NYMEX subsequently acquires during the term of
this Agreement) by NYMEX’s competitors and prospective
competitors, and shall not apply to any other activities of
Advisor on behalf of such competitors and potential competitors.
Advisor hereby warrants that there is no conflict of interest
between Advisor’s other employment, if any, or other
Advisor contracts, if any, and the activities to be performed
hereunder. Advisor shall advise NYMEX if a conflict of interest
arises in the future.

2

 

     
C. Remedies. In addition to other
remedies provided hereunder, Advisor shall make reasonable
efforts to promptly remedy any breach of any warranty in this
Agreement at its own expense and without charge to NYMEX.

     
D. NYMEX Rules. Advisor acknowledges
and agrees to be bound by NYMEX Rule 3.02
(“Restrictions on Governing Board Members, Committee
Members, Consultants, and Other Persons Who Possess Material,
Non-Public Information”).

     
9. Infringement Indemnity

     
A. Any Party providing
(“Provider”) any information, design specification,
instruction, software, data, or other material
(“Material”) will defend, indemnify and hold harmless
the Party receiving such Material (“Recipient”)
against any claim (and all expenses arising therefrom,
including, but not limited to, reasonable attorneys fees) that
any Material furnished by the Provider and used by the Recipient
for the Services infringes a copyright, patent, trade secret, or
other intellectual property right provided that: (1) the
Recipient notifies the Provider in writing within thirty (30)
days of the claim; (2) the Provider has sole control of the
defense and all related settlement negotiations; and
(3) the Recipient provides the Provider with the
assistance, information, and authority reasonably necessary to
perform the above; reasonable out-of-pocket (including, but not
limited to, reasonable attorneys fees) expenses incurred by the
Recipient in providing such assistance will be reimbursed by the
Provider.

     
B. The Provider shall have no liability for
any claim of infringement resulting from: (1) the
Recipient’s use of altered Material if infringement would
have been avoided by the use of unaltered Material provided to
the Recipient; or (2) any information, design,
specification, instruction, software, data or material not
furnished by the Provider.

     
C. In the event that some or all of the
Material is held or is believed by the Provider to infringe, the
Provider shall have the option, at its expense, (1) to
modify the Material to be non-infringing; (2) to obtain for
the Recipient a license to continue using the Material; or
(3) to require return of the infringing Material and all
rights thereto from the Recipient, after which Provider shall
pay to Recipient any all fees paid to Provider in respect to the
use thereof. If such return of the infringing Material affects
either NYMEX’s or Advisor’s ability to meet its
obligations under this Agreement, the affected Party may
terminate this Agreement upon thirty (30) days prior
written notice to the other Party.

     
10. Indemnification

     
A. In addition to Article 9, each party
(“Indemnitor”) shall indemnify and hold harmless the
other party (“Indemnitee”), its affiliates, and its
and their respective directors, officers, members, employees,
and agents, from and against any and all liabilities, damages,
claims, losses, costs, expenses, judgments or settlements,
including attorney fees and disbursements, incurred by
Indemnitee in any action or proceeding between Indemnitee and
any third party, in connection with or arising out of the gross
negligence or wilful misconduct of Indemnitor in connection with
the provision of the Services.

     
B. In addition to Article 9, Indemnitor
shall indemnify, defend and hold harmless Indemnitee from and
against any and all claims arising from a breach of the
representations and warranties made by Indemnitor in this
Agreement.

     
C. In addition to Article 9, Advisor
shall indemnify, defend and hold harmless NYMEX and its
affiliates and its and their respective directors, officers,
members, employees and agents from and against any and all
liabilities, damages, claims, losses, costs, expenses, judgments
or settlements, including attorney fees and disbursements, in
respect of taxes on payments made to Advisor and all claims
arising out of any bodily injury, death or damage to tangible
personal property to the extent directly and proximately caused
by the gross negligence or willful misconduct of Advisor.

     
D. The following conditions shall apply to
any indemnification pursuant to ¶¶ A, B or C of
this Article 10: (1) Indemnitee must promptly provide
Indemnitor with written notice of any such claim;
(2) Indemnitee must provide reasonable cooperation,
information, and assistance to Indemnitor in connection
therewith; (3) Indemnitor shall have sole control and
authority to defend, settle or compromise such claim;

3

 

(4) Indemnitee shall have the right to
retain counsel to participate in the claim, in which case
Indemnitor shall reasonably cooperate with Indemnitee and its
counsel; and (5) Indemnitor shall not settle any claim
without the consent of Indemnitee unless the sole relief awarded
is money damages payable solely by Indemnitor.

     
11. LIMITATION OF LIABILITY

     
NYMEX’S AGGREGATE LIABILITY TO ADVISOR OR ANY THIRD PARTIES
FOR ANY AND ALL DAMAGES IN ANY WAY RELATED TO THIS AGREEMENT,
REGARDLESS OF WHETHER THE CLAIM FOR SUCH DAMAGES IS BASED IN
CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE, SHALL NOT EXCEED
THE TOTAL AMOUNT PAID TO ADVISER HEREUNDER.

     
12. Inventions, Patents, Trademarks and
Copyrights

     
A. Definitions.

		
	 	     
    (1) The term “Work” means any and
    all writings, designs, models, drawings, photographs, physical
    property, reports, formulas, patterns, devices, compilations or
    other material, whether or not protectable under Title 17
    of the U.S. Code, and that are created for NYMEX by
    Advisor, whether alone or with others, and whether created by
    independent contractors, employees or agents of Advisor.
    
	 
	 	     
    (2) The term “Trademark” means any
    name, word, phrase, logo, design or other graphic depiction
    generated during the performance of this Agreement that is or
    can be used to describe either a product or service of NYMEX,
    and that is created for NYMEX by Advisor, whether alone or with
    others, and whether created by independent contractors,
    employees or agents of Advisor.
    
	 
	 	     
    (3) The term “Invention” means any
    designs, processes, inventions or discoveries, whether or not
    patentable or otherwise protectable under Title 35 of the
    U.S. Code, that are created for NYMEX by Advisor, whether
    alone or with others, and whether created by independent
    contractors, employees or agents of Advisor.
    

     
B. Work Made for Hire and Assignment.
In relation to the performance of this Agreement, Advisor may
create certain Works for NYMEX that may be copyrighted or
copyrightable under the laws of the United States. To the extent
that any such Works are created, Advisor will be considered to
have created a Work Made for Hire as defined in 17 U.S.C.
§ 101, and NYMEX shall have the sole right to the
copyright. In the event that any such Work created by Advisor
does not qualify as a Work Made for Hire, Advisor hereby assigns
its copyright and all rights, title and interest throughout the
world, in and to the Work to NYMEX, as provided for below.

     
C. Title to Works, Trademarks, and
Inventions Produced. It is understood and agreed that the
entire right, title and interest throughout the world to all
Works, Trademarks, and/or Inventions that are conceived of,
prepared, procured, generated or produced, whether or not
reduced to practice, by Advisor, either solely or jointly with
others during the course of, in connection with, or as related
to the performance of this Agreement, shall be and hereby are
vested and assigned by Advisor to NYMEX.

     
D. Further Assurances. Advisor agrees
to execute any and all documents prepared by NYMEX, and to do
all other lawful acts as may be necessary, useful or convenient
for NYMEX to establish, document, and protect the rights granted
to NYMEX hereunder.

     
E. Dealings with Others. Advisor has
acquired or shall acquire from each of its employees,
consultants, and subcontractors, if any, the necessary rights to
all such works, trademarks, and inventions produced by such
employees, consultants, and subcontractors, within the scope of
their employment by Advisor in performing Services under this
Agreement. Advisor shall obtain the cooperation of each such
party to secure to NYMEX or its nominees the rights granted to
NYMEX hereunder may acquire in accordance with the provisions of
this Article 11.

4

 

     
13. Non-competition &
Non-solicitation.

     
Notwithstanding anything to the contrary in this
Agreement, during the term of this Agreement and for a period of
one (1) year following the termination and/or expiration of
this Agreement, Advisor shall not (without the prior written
consent of NYMEX):

		
	 	     
    (1) Provide any services (whether as a
    director, officer, employee, consultant or otherwise) to any
    other commodity exchange and/or any platform (including
    electronic communications networks) in connection with the
    trading of energy or metals (or any other products of an
    exchange which NYMEX subsequently acquires during the term of
    this Agreement); or
    
	 
	 	     
    (2) Solicit for employment for, nor employ,
    any employee of NYMEX and/or its affiliates without the approval
    of the Executive Committee of NYMEX.
    

     
B. Nothing contained in this Agreement shall
restrict any proprietary trading by Advisor or any entity in
which Advisor owns a controlling interest.

     
C. Advisor has carefully read and considered
the provisions hereof, has been advised by counsel and, having
done so, Advisor acknowledges and agrees that the restrictions
and covenants contained in this Article 13, in view of the
unique nature of the business in which NYMEX is engaged and
Advisor’s relationship with NYMEX, are reasonable and
necessary in order to protect the legitimate interests of NYMEX,
that their enforcement will not impose a hardship on Advisor or
significantly impair his ability to earn a livelihood, and that
any violation thereof would result in irreparable injuries to
NYMEX.

     
14. Miscellaneous

     
A. This Agreement shall be governed by and
construed in accordance with the applicable laws of the State of
New York except for its laws governing conflict and choice
of laws.

     
B. The Advisor shall not discriminate
against any employee or applicant for employment because of
race, color, religion, sex, age or national origin, and Advisor
agrees to comply with all laws and ordinances relating thereto,
and all orders, rules and regulations issued pursuant thereto.

     
C. Neither Party shall assign, sublet or
transfer all of any part of its interest in this Agreement
without the prior written consent of the other Party except that
NYMEX may assign to any of its successors or affiliates. Except
as otherwise provided, any attempted assignment by a Party in
violation of this provision shall render this Agreement voidable
by the other Party.

     
D. The provisions of Articles 3, 5, 6,
9, 10, 11, 12, 13 and 14 shall survive the completion or early
termination of this Agreement.

     
E. Failure of either Party to enforce any of
the provisions of this Agreement shall not be construed as a
waiver of such provisions or of the right thereafter to enforce
such provisions.

     
F. This Agreement, the terms and conditions
herein contained, together with all attachments hereto and other
agreements and documents referred to herein, shall constitute
the entire agreement between NYMEX and the Advisor and supersede
any and all other agreements or arrangements, whether written or
oral, with respect to the subject matter hereof. This Agreement
shall inure to the benefit of and be binding upon the Parties
hereto and their respective successors and assigns, as may be
permitted hereunder. This Agreement may be amended or modified
only by a writing signed by both Parties.

     
G. In case any one or more of the provisions
contained in this Agreement shall be held to be invalid, illegal
or unenforceable in any respect for any reason, such invalidity,
illegality or unenforceability shall not affect any other
provisions of the Agreement, and this Agreement shall be
construed as if such invalid, illegal or unenforceable provision
had never been contained herein.

     
H. All notices and other communications to
be given or to otherwise be made to any Party to this Agreement
shall be deemed to be sufficient if contained in a written
instrument delivered in person or duly sent by first class
registered or certified mail or by a recognized national courier
service, postage or charges

5

 

repaid, to the Advisor and to the NYMEX, at the
address set forth on the first page of this Agreement, or to
such other address of which such Party may give written notice
to the other in accordance with this provision.

     
I. The Article headings contained in this
Agreement are for reference purposes only and shall not affect
in any way the meaning or interpretation of this Agreement.

     
J. This Agreement may be executed in one or
more counterparts, which shall, collectively and separately,
constitute one agreement.

6

 

     
IN WITNESS WHEREOF,
the Parties hereto have duly executed and delivered this
Agreement as of the Effective Date.

		
	 	
    /s/ VINCENT VIOLA
    
	 	
    

	 	
    Vincent Viola
    
	 
	 	
    NYMEX HOLDINGS, INC.
    

			
	 	By: 	
    /s/ MITCHELL STEINHAUSE
    

		
	 	
    

	 	
    Name: Mitchell Steinhause
    
	 	
    Title:  Chairman
    

7

 

EXHIBIT A

SCOPE OF WORK & PAYMENT

     
The Advisor shall advise NYMEX in connection with
various strategic initiatives including, but not limited to,
business combinations, financing transactions, capital raising
and/or technology agreements that Advisor identifies or is
directed to pursue by NYMEX’s Chairman or by NYMEX’s
Board of Directors. Advisor shall devote no less than ten full
days per any given month during the term of this Agreement to
the Services. Subject to Article 13 of the Advisor Services
Agreement (“Agreement”) between the parties, Advisor
shall be free to perform other services for other persons, and
shall not be required to devote his full working time and energy
to the performance of his obligations under the Agreement.
Advisor shall report directly to NYMEX’s Chairman or
NYMEX’s Board of Directors. Advisor shall be referred to as
“Senior Strategic Advisor.”

     
As part of, and not in limitation of, the
Services, Advisor will (1) perform analyses of the
initiatives and their potential financial and non-financial
impact on NYMEX, (2) assist in negotiations with third
parties and their advisors, (3) coordinate with any
financial, legal and accounting advisors retained by NYMEX,
(4) make himself available for presentations to the Board
of Directors and any committee of the Board, and (5) keep
the Chairman of NYMEX currently informed as to the status of
initiatives being pursued as part of the Services.

     
In consideration of the Services, for the period
of service NYMEX shall pay the Advisor:

		
	 	     
    a)     $83,333.33 per
    month (and a proportionate amount of such payment for each
    partial month); and
    
	 
	 	     
    b)     a transaction fee
    (“Transaction Fee”) based upon the following:
    

		
	 	     
    (1) In the event that NYMEX acquires a
    controlling interest in the Intercontinental Exchange, Inc.
    (“ICE”) or the New York Board of Trade
    (“NYBOT”) during the term of this Agreement or any
    extension thereof, NYMEX shall also pay Advisor an amount equal
    to a percentage of the price paid by NYMEX to ICE or NYBOT, as
    the case may be, for such controlling interest
    (“Price”) according to the following scale:
    

		
	 	     
    (i) Two percent (2%) of the first fifty
    million dollars ($50,000,000) of the Price; and
    
	 
	 	     
    (ii) One and one half percent (1.5%) of the
    following fifty million dollars ($50,000,000) to one hundred
    million dollars ($100,000,000) of the Price; and
    
	 
	 	     
    (iii) One and one quarter percent (1.25%) of
    the following one hundred million dollars ($100,000,000) to two
    hundred million dollars ($200,000,000) of the Price; and
    
	 
	 	     
    (iv) One percent (1%) of that portion of the
    Price that exceeds two hundred million dollars
    ($200,000,000); and
    

		
	 	     
    (2) A fee to be negotiated in good faith in
    respect of any other substantial business combination or
    acquisition, provided that such business combination or
    acquisition is first identified by the Advisor to NYMEX or as
    may be agreed upon by the Parties.
    
	 
	 	     
    (3) In addition to the foregoing, NYMEX
    shall pay the applicable Transaction Fee in respect of a
    transaction that is consummated within one year of the
    expiration or termination of this Agreement or any extension
    thereof, and that derives directly from an opportunity that
    Advisor identified and substantively pursued as part of his
    Services during the term of the Agreement. Notwithstanding the
    foregoing, NYMEX shall have no obligation to pay such
    Transaction Fee in the event of NYMEX’s termination of this
    Agreement for Advisor’s breach of the terms and conditions
    contained herein.
    

8

 

EXHIBIT B

NON-DISCLOSURE AGREEMENT

     
WHEREAS, this
Non-Disclosure Agreement (“Agreement”) is entered into
as of March 17, 2004 (“Effective Date”) between
the NYMEX Holdings, Inc. (“NYMEX” or “Disclosing
Party”) and Vincent Viola (“Advisor” or
“Receiving Party”) (each of NYMEX and Advisor is
hereinafter referred to individually as a “Party” or
collectively as the “Parties”) in connection with a
business venture (“Arrangement”); and

     
WHEREAS, NYMEX
possess its own proprietary, financial, business, and marketing
information relating to the Arrangement; and

     
WHEREAS, in order to
begin the discussions regarding the Arrangement NYMEX is willing
to disclose to Advisor certain information and related materials
that NYMEX considers to be confidential and secret and in which
NYMEX has a proprietary interest, subject to the terms and
conditions set forth below.

     
NOW, THEREFORE, in
consideration of the disclosure of any Confidential Information
(as defined below) the covenants and premises contained herein
and other good and valuable consideration the sufficiency of
which is hereby acknowledged, and intending to be legally bound
hereby, the Parties hereto agree as follows:

     
1. The following definitions shall apply for
purposes of this Agreement:

		
	 	     
    “Affiliate”
    means, when used with respect to any Person (as defined below),
    any other Person directly or indirectly controlling, controlled
    by or under common control with, such Person.
    
	 
	 	     
    “Agreement”
    means this Agreement, as amended from time to time.
    
	 
	 	     
    “Arrangement”
    means any business venture(s) discussed between the Parties.
    
	 
	 	     
    “Confidential
    Information” shall mean any and
    all of NYMEX’s confidential, secret or proprietary
    information, whether written or oral, including but not limited
    to, products or services, personnel, procedures of operation,
    business or marketing plans, business methods and practices,
    compilations of data or information concerning NYMEX’s
    business, financial data, business proposals, names of
    NYMEX’s suppliers and customers, possible business partners
    and their businesses and any other information not generally
    known to the public.
    
	 
	 	     
    “Disclosing
    Party” shall mean NYMEX.
    
	 
	 	     
    “Person”
    means a natural person, partnership (whether general or
    limited), limited liability company, trust, estate, association,
    corporation, custodian, nominee or any other individual or
    entity in its own or any representative capacity.
    
	 
	 	     
    “Receiving
    Party” shall mean Advisor.
    
	 
	 	     
    “Representatives”
    means, with respect to either Party, such Party’s
    directors, officers, members, employees, agents or advisors
    (including, without limitation, attorneys, accountants and
    management consultants).
    

     
2. All Confidential Information heretofore
or hereinafter furnished to Receiving Party or to any of
Receiving Party’s Representatives by Disclosing Party or by
any of the Disclosing Party’s Representatives, shall be
kept confidential by the Receiving Party. The Receiving Party
warrants that it will keep the Disclosing Party’s
Confidential Information in no less confidential a manner than
it keeps its own most confidential information but in no event
shall less than reasonable care be exercised to prevent
unauthorized disclosure.

     
3. Confidential Information disclosed
hereunder shall at all times remain, as between the Parties, the
property of the Disclosing Party. No license under any trade
secrets, copyrights, or other rights is granted by this
Agreement or any disclosure of Confidential Information
hereunder.

9

 

     
4. The Receiving Party shall receive, use
and consider the Confidential Information solely and exclusively
for the purpose of discussions regarding the Arrangement. Except
to the extent the Receiving Party has prior written consent from
the Disclosing Party, the Receiving Party shall not duplicate in
any manner or disclose to any third party the Confidential
Information or any part thereof other than to its
Representatives having a need to know the Confidential
Information in order to assist in the evaluation of the
Arrangement or any other current or future business relationship
between the Receiving Party and the Disclosing Party. In any
instance in which the Receiving Party discloses the Confidential
Information to its Representatives, the Receiving Party shall
inform them of the confidential nature of the Confidential
Information and of the terms of this Confidentiality Agreement.
The Receiving Party shall be held responsible for any
unauthorized use or disclosure of any Confidential Information,
regardless of the nature thereof or the identity of the
unauthorized user or disclosure thereof.

     
5. The Receiving Party understands and
agrees that disclosure of the Confidential Information may cause
irreparable harm to the Disclosing Party, not compensable by
money damages and therefore the Disclosing Party shall not have
an adequate remedy at law in the event of an unauthorized use or
disclosure of the Confidential Information in breach of the
provisions of this Agreement. Accordingly, the Disclosing Party
shall be entitled to injunctive relief, in addition to any other
rights and remedies which might be available to it under the
law. The prevailing Party in any litigation relating to or
arising under this Agreement shall be entitled to reasonable
attorneys’ fees, including fees on appeal.

     
6. Upon the written request of the
Disclosing Party, the Receiving Party will promptly return to
the Disclosing Party or destroy all of the Confidential
Information of the Disclosing Party (or such portion thereof as
may be requested by the Disclosing Party) without retaining
copies, summaries or extracts thereof or based thereon.

     
7. The Receiving Party further understands
and acknowledges that the furnishing of the Confidential
Information by the Disclosing Party does not in and of itself
constitute a representation of any kind by the Disclosing Party
as to the accuracy or completeness of such information.

     
8. The Receiving Party may disclose the
Disclosing Party’s Confidential Information to a third
person only if: (a) the Confidential Information is made
public by the Disclosing Party; (b) the Confidential
Information becomes generally known to the public, or was
generally known to the public, before the date on which this
Agreement is executed; (c) the Disclosing Party waives its
rights as provided in Article 14 below; (d) the
Receiving Party obtains the Confidential Information independent
of the Disclosing Party lawfully and without breach of this
Agreement or (e) disclosure of the Confidential Information
is required by a governmental authority, either by explicit
order, statute or regulation; in which case the Receiving Party
shall comply with its obligations under Section 9 below.

     
9. If the Receiving Party is required by
law, regulation, legal process or regulatory authority to
disclose the Disclosing Party’s Confidential Information,
the Receiving Party (if legally permitted to do so) shall
provide the Disclosing Party with prompt notice (in writing if
practicable) of any such requirement so that the Disclosing
Party may seek a protective order or other remedy and/or waive
compliance with the provisions of this Agreement. In the event
that such protective order or other remedy is not obtained, or
that the Disclosing Party grants a waiver hereunder, the
Receiving Party may furnish that portion (and only that portion)
of the Confidential Information which, in the opinion of its
counsel, it is required by law, regulation, legal process or
regulatory authority to disclose, without any liability to the
Disclosing Party and with respect to which it agrees to exercise
its best efforts to obtain reliable assurance that confidential
treatment will be accorded. In any event, the Receiving Party
will not oppose action by the Disclosing Party to obtain a
protective order unless the Receiving Party reasonably
determines that such order is adverse to its interests or other
reliable assurance that confidential treatment will be accorded
the Confidential Information.

     
10. The Parties acknowledge and agree that
the Disclosing Party may provide other persons with its own
Confidential Information and nothing contained herein shall act
so as to prevent such Party from doing so.

     
11. Receiving Party hereby agrees to
indemnify and hold harmless the Disclosing Party and its
Representatives from any damage, loss, cost or liability
(including reasonable attorneys fees and legal fees, and

10

 

the cost of enforcing this indemnification
provision) arising out of or resulting from any breach by it of
this Agreement.

     
12. Each of the Parties agree that except
for the matters specifically agreed to in this Agreement and as
otherwise agreed in writing by the Parties, none of the Parties
or their respective Representatives will be under any legal
obligation of any kind whatsoever with respect to providing any
services and/or any discussion with regard to providing such
services.

     
13. Each Party acknowledges and agrees that
it may allow other Persons to provide it any of the services to
be provided (or proposed to be provided) by the other Party. In
addition, each Party may make available to any other Persons its
own Confidential Information and nothing contained herein shall
act so as to prevent a Party from so doing.

     
14. This Agreement may be modified or waived
only by an express amendment and waiver in writing signed by the
Parties. It is understood and agreed that no failure or delay by
any Party in exercising any right, power or privilege hereunder
shall operate as a waiver thereof, nor shall any single or
partial exercise thereof preclude any other or further exercise
thereof or the exercise of any right, power or privilege
hereunder.

     
15. The invalidity or unenforceability of
any provision of this Agreement shall not affect the validity or
enforceability of any other provisions of this Agreement, which
shall remain in full force and effect.

     
16. This Agreement will be governed by both
the substantive and procedural laws of the State of
New York, U.S.A., excluding its conflict of law rules and
the UN Convention for the International Sale of Goods (CISG).
Any action to enforce any provision of this Agreement may be
brought only in the Supreme Court, State of New York,
County of New York or in the United States District Court
for the Southern District of New York.

     
17. NYMEX and Advisor shall be bound by the
terms of this Agreement until a written release is given by
NYMEX following the return or destruction of all of the
Confidential Information.

     
18. Neither Party may use the name of the
other in connection with any advertising or publicity materials
or activities without the prior written consent of the other
Party.

     
19. This Agreement shall become effective as
of the date Confidential Information is first made available to
any of the Parties to this Agreement.

     
20. This Agreement may be executed in
counterparts, each of which shall be deemed to be an original,
but all of which shall constitute one and the same agreement.

11

 

     
IN WITNESS WHEREOF,
the Parties hereto have duly executed and delivered this
Agreement as of Effective Date.

		
	 	
    /s/ VINCENT VIOLA
    
	 	
    

	 	
    Vincent Viola
    
	 
	 	
    NYMEX HOLDINGS, INC.
    

			
	 	By: 	
    /s/ MITCHELL STEINHAUSE
    

		
	 	
    

	 	
    Name: Mitchell Steinhause
    
	 	
    Title:  Chairman
    

12

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