Document:

EX-10.10: AMENDMENT NO. 3 TO CREDIT AGREEMENT

TABLE OF CONTENTS

									
	 Exhibit 10.10
		 PART I
			 DEFINITIONS
		 PART II
			 AMENDMENTS TO CREDIT AGREEMENT
		 PART III
			 CONDITIONS TO EFFECTIVENESS
		 PART IV
			 MISCELLANEOUS
	ANNEX I
		AFFIRMATION AND ACKNOWLEDGMENT
	EX-10.10: AMENDMENT NO. 3 TO CREDIT AGREEMENT
	EX-12.1: COMPUTATION OF RATIO OF EARNINGS

Table of Contents

Exhibit 10.10

[EXECUTION COPY]

AMENDMENT NO. 3 TO CREDIT AGREEMENT

         THIS AMENDMENT NO. 3 TO CREDIT AGREEMENT (this “Amendment”), dated as
of December 4, 2001, is among True Temper Sports, Inc., a Delaware corporation
(the “Borrower”), the Lenders (as defined below) parties hereto, and Bank One,
NA (formerly known as The First National Bank of Chicago) having its main office
in Chicago, Illinois, as administrative agent (the “Administrative Agent”) for
the Lenders.

W I T N E S S E T H:

         WHEREAS, the Borrower, the various financial institutions parties
thereto (collectively, the “Lenders”), Credit Suisse First Boston (formerly
known as DLJ Capital Funding, Inc.), as the syndication agent, the
Administrative Agent and Donaldson, Lufkin & Jenrette Securities Corporation, as
lead arranger, are parties to a Credit Agreement, dated as of September 30, 1998
(as amended by Amendment No. 1 thereto, dated as of June 11, 1999, by Amendment
No. 2 thereto, dated as of November 17, 2000, and as amended, supplemented,
amended and restated or otherwise modified from time to time, the “Credit
Agreement”);

         WHEREAS, the Borrower desires, and the Lenders are willing, on the
terms and subject to the conditions hereinafter set forth, to amend the Credit
Agreement as set forth herein;

         NOW, THEREFORE, in consideration of the agreements herein contained,
and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto agree as follows:

PART I

DEFINITIONS

         SUBPART 1.1. Certain Definitions. Unless otherwise defined herein or
the context otherwise requires, terms used in this Amendment, including its
preamble and recitals, have the following meanings (such meanings to be equally
applicable to the singular and plural forms thereof):

         “Administrative Agent” is defined in the preamble.

         “Amendment” is defined in the preamble.

 

Table of Contents

         “Amendment Effective Date” is defined in Subpart 3.1.

         “Borrower” is defined in the preamble.

         “Credit Agreement” is defined in the first recital.

         “Lenders” is defined in the first recital.

         SUBPART 1.2. Other Definitions. Unless otherwise defined herein or the
context otherwise requires, terms used in this Amendment, including its preamble
and recitals, have the meanings ascribed thereto in the Credit Agreement. Each
reference to “hereof”, “hereunder”, “herein” and “hereby” and each other similar
reference and each reference to “this Agreement” and each other similar
reference contained in the Credit Agreement shall from and after the Amendment
Effective Date refer to the Credit Agreement, as amended hereby.

PART II

AMENDMENTS TO CREDIT AGREEMENT

         Effective on (and subject to the occurrence of) the Amendment Effective
Date, the Credit Agreement is amended in accordance with this Part II. Except to
the extent amended by this Amendment, the Credit Agreement is and shall continue
to be in full force and effect and is hereby ratified and confirmed in all
respects.

         SUBPART 2.1. Amendments to Article I. Article I of the Credit Agreement
(“DEFINITIONS AND ACCOUNTING TERMS”) is amended as set forth in this Subpart
2.1.

         SUBPART 2.1.1. New Definitions. Section 1.1 of the Credit Agreement
(“Defined Terms”) is hereby amended by inserting the following definitions in
their alphabetically appropriate places:

		
	 	         “Third Amendment” means that certain Amendment No. 3 to Credit
Agreement, dated as of December 4, 2001, among the Borrower, the
Lenders parties thereto, and the Administrative Agent.
	 
	 	         “Third Amendment Effective Date” means the Amendment Effective
Date (as defined in the Third Amendment).

         SUBPART 2.1.2. Modified Definitions. (a) Clause (a) of the definition
of the term “Applicable Margin” appearing in Section 1.1 of the Credit Agreement
(“Defined Terms”) is hereby amended and restated in its entirety to read as
follows:

-2-

Table of Contents

		
	 	         "(a) with respect to the unpaid principal amount of each
Term-B Loan maintained as a (i) Base Rate Loan, 1.75% per annum and
(ii) Eurodollar Loan, 3.00% per annum;”.
	 
	 	         (b) The table set forth at the end of clause (c) of the term
“Applicable Margin” appearing in Section 1.1 of the Credit Agreement
(“Defined Terms”) is hereby amended and restated in its entirety to
read as follows:

“Applicable Margin For Revolving Loans and Term-A Loans

	 	 	 	 	 
	 	 	Applicable	 	Applicable
	 	 	Margin For Base	 	Margin For
	Leverage Ratio	 	Rate Loans	 	Eurodollar Loans
	
	 	
	 	

	greater than or equal to 3.0:1	 	
0.75%
	 	2.00%
	
	
	
	

	less than 3.0:1	 	
0.50%
	 	1.50%”

         SUBPART 2.2. Amendments to Article VII. Article VII of the Credit
Agreement (“COVENANTS”) is hereby amended as set forth in this Subpart 2.2.

         SUBPART 2.2.1. Amendments to Section 7.2.4. (a) Clause (b) of Section
7.2.4 of the Credit Agreement (“Financial Covenants”) is hereby amended by
deleting the table set forth in such clause and inserting the following table in
place thereof to read in its entirety as follows:

	 	 	 	 	 
	" Period	 	Leverage Ratio
	
	 	

	10/1/1998 through 9/30/1999
	 	 	6.50:1.0	 
	
	
	
	

	10/1/1999 through 3/31/2000
	 	 	6.00:1.0	 
	
	
	
	

	4/1/2000 through 9/30/2000
	 	 	5.50:1.0	 
	
	
	
	

	10/1/2000 through 12/31/2000
	 	 	5.25:1.0	 
	
	
	
	

	1/1/2001 through 6/30/2001
	 	 	5.00:1.0	 
	
	
	
	

	7/1/2001 through 9/30/2001
	 	 	4.50:1.0	 
	
	
	
	

	10/1/2001 through 6/30/2002
	 	 	4.00:1.0	 
	
	
	
	

	7/1/2002 through 12/31/2002
	 	 	3.50:1.0	 
	
	
	
	

	1/1/2003 through 12/31/2003
	 	 	3.00:1.0	 
	
	
	
	

	1/1/2004 and thereafter
	 	 	2.50:1.0."	 

-3-

Table of Contents

         (b)  Clause (d) of Section 7.2.4 of the Credit Agreement (“Financial
Covenants”) is hereby amended by deleting the table set forth in such clause and
inserting the following table in place thereof to read in its entirety as
follows:

	 	 	 	 	 
	 	 	Fixed Charge
	"Period	 	Coverage Ratio
	
	 	

	10/1/1998 through 12/31/1999
	 	 	1.00:1.0	 
	
	
	
	

	1/1/2000 through 9/30/2001
	 	 	1.10:1.0	 
	
	
	
	

	10/01/01 and thereafter
	 	 	1.25:1.0."	 

         SUBPART 2.2.2. Amendments to Section 7.2.6. Section 7.2.6 of the Credit
Agreement (“Restricted Payments, etc.”) is hereby amended by (i) deleting the
word “and” at the end of clause (d) thereof, (ii) deleting the period (“.”) at
the end of clause (e) thereof and inserting the word “; and” in place thereof
and (iii) inserting a new clause (f) thereto to read in its entirety as follows:

		
	 	         (f) notwithstanding the provisions of clauses (a) and (b)
above, the Borrower shall be permitted to make Restricted Payments in
an amount not to exceed $20,000,000 (exclusive of any fees payable in
connection therewith but inclusive of any premiums paid in connection
therewith) consisting of purchases by the Borrower of its Subordinated
Notes in the aggregate pursuant to an open market repurchase program,
so long as (A) the unused portion of the Revolving Loan Commitment
Amount (net of Letter of Credit Outstandings) available as of the date
of such Restricted Payment (including immediately following such
payment) equals or exceeds $10,000,000 and (B) a chief financial
Authorized Officer of the Borrower shall have delivered a certificate
to the Administrative Agent certifying as to the accuracy of clause (A)
above and certifying that no Default shall have occurred and be
continuing on the date such Restricted Payment is made, nor would a
Default result from the making of such Restricted Payment.

         SUBPART 2.2.3. Amendment to Section 10.11.1. Section 10.11.1 of the
Credit Agreement (“Assignments”) is hereby amended by deleting the word “or”
immediately following clause (i) of the first paragraph of such Section and
inserting a comma (“,”) in place thereof, and by inserting a new clause (iii)
immediately following clause (ii) of the first paragraph of such Section to read
in its entirety as follows:

	 	 	“or (iii) in the case of an assignment of Term-B Loans, the then
remaining amount of such Lender’s Term-B Loans”.

-4-

Table of Contents

PART III

CONDITIONS TO EFFECTIVENESS

         SUBPART 3.1. Effective Date. This Amendment shall become effective as
of the date (the “Amendment Effective Date”) when all of the conditions set
forth in this Subpart 3.1 shall have been satisfied.

         SUBPART 3.1.1. Execution of Counterparts. The Administrative Agent
shall have received counterparts of this Amendment duly executed by the
Borrower, the Administrative Agent and the Required Lenders (or evidence thereof
satisfactory to the Administrative Agent). The delivery of an executed
counterpart hereof by the Borrower shall constitute a representation and
warranty by the Borrower that, on the Amendment Effective Date, both before and
after giving effect to this Amendment, all statements set forth in clauses (a),
(b) and (c) of Section 5.2.1 of the Credit Agreement, as amended by this
Amendment, are true and correct as of such date, except to the extent that any
such statement expressly relates to an earlier date (in which case such
statement shall be true and correct on and as of such earlier date).

         SUBPART 3.1.2. Affirmation and Acknowledgment. The Administrative Agent
shall have received executed counterparts of the Affirmation and Acknowledgment,
dated the Amendment Effective Date, substantially in the form of Annex I hereto,
duly executed and delivered by the parties thereto.

         SECTION 3.1.3. Amendment Fees. The Administrative Agent shall have
received, for the account of each Lender signatory hereto prior to or on the
date hereof, an amendment fee equal to .250% of each such Lender’s portion of
the Total Exposure Amount.

         SUBPART 3.1.4. Fees and Expenses. The Borrower hereby agrees to pay and
reimburse (i) Banc One Capital Markets, Inc. (“BOCM”) pursuant to the terms of
that certain Arrangement Fee Letter, dated as of November 15, 2001, by and among
BOCM, the Administrative Agent, and the Borrower and (ii) the Administrative
Agent for all its reasonable fees and expenses incurred in connection with the
negotiation, preparation, execution and delivery of this Amendment and related
documents, including, in each case, all reasonable fees and disbursements of
counsel to the Administrative Agent.

         SUBPART 3.2. Limitation. Except as expressly provided hereby, all of
the representations, warranties, terms, covenants and conditions of the Credit
Agreement and each other Loan Document shall remain unamended and unwaived and
shall continue to be, and shall remain, in full force and effect in accordance
with their respective terms. The amendments, modifications and consents set
forth herein shall be limited precisely as provided for herein, and shall not be
deemed to be a waiver of, amendment of, consent to or modification of any other
term or provision of the Credit Agreement or of any term or provision of any
other Loan Document or other instrument referred to therein or herein, or of any
transaction or further or

-5-

Table of Contents

future action on the part of the Borrower or any other Person which would
require the consent of the Administrative Agent, the Issuer or any of the
Lenders under the Credit Agreement or any such other Loan Document or
instrument.

PART IV

MISCELLANEOUS

         SUBPART 4.1. Cross-References. References in this Amendment to any Part
or Subpart are, unless otherwise specified, to such Part or Subpart of this
Amendment. References in this Amendment to any Article or Section are, unless
otherwise specified, to such Article or Section of the Credit Agreement.

         SUBPART 4.2. Loan Document Pursuant to Credit Agreement. This Amendment
is a Loan Document executed pursuant to the Credit Agreement and shall (unless
otherwise expressly indicated therein) be construed, administered and applied in
accordance with the terms and provisions of the Credit Agreement, as amended
hereby, including Article X thereof.

         SUBPART 4.3. Counterparts, etc. This Amendment may be executed by the
parties hereto in several counterparts, each of which shall be deemed to be an
original and all of which shall constitute together but one and the same
Agreement.

         SUBPART 4.4. Governing Law. THIS AMENDMENT SHALL BE GOVERNED
BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
NEW YORK.

         SUBPART 4.5. Successors and Assigns. This Amendment shall be binding
upon and inure to the benefit of the parties hereto and their respective
successors and assigns.

-6-

Table of Contents

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

	 	 	 	 	 
	 	 	TRUE TEMPER SPORTS, INC.
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
By:	 	 
	 	 	 	 	

	 	 	 	 	Title:
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	BANK ONE, NA (formerly known as The First

    National Bank of Chicago), as Administrative

    Agent, Issuer and as a Lender
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
By:	 	 
	 	 	 	 	

	 	 	 	 	Title:
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	FLEET NATIONAL BANK (formerly known

    as Summit Bank), as a Lender
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
By:	 	 
	 	 	 	 	

	 	 	 	 	Title:
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	THE PROVIDENT BANK, as a Lender
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
By:	 	 
	 	 	 	 	

	 	 	 	 	Title:
	
	
	
	

	 	 	 	 	 

-7-

Table of Contents

	 	 	 	 	 
	
	
	
	

	 	 	VAN KAMPEN PRIME RATE INCOME TRUST,

    as a Lender
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	By: Van Kampen Investment Advisory Corp.
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
By:	 	 
	 	 	 	 	

	 	 	 	 	Title:
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	VAN KAMPEN SENIOR FLOATING RATE

    FUND, as a Lender
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	By: Van Kampen Investment Advisory Corp.
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
By:	 	 
	 	 	 	 	

	 	 	 	 	Title:
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	VAN KAMPEN SENIOR INCOME TRUST, as a

    Lender
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	By: Van Kampen Investment Advisory Corp.
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
By:	 	 
	 	 	 	 	

	 	 	 	 	Title:
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	VAN KAMPEN CLO I, LIMITED, as a

    Lender
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	By: Van Kampen Management Inc.,

    as collateral manager
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
By:	 	 
	 	 	 	 	

	 	 	 	 	Title:

-8-

Table of Contents

ANNEX I

AFFIRMATION AND ACKNOWLEDGMENT

	 	December 4, 2001

The Lenders (as defined below) and

Bank One, N.A. (as successor to

     The First National Bank of Chicago),

     as Administrative Agent for the Lenders

One First National Plaza

Chicago, Illinois 60670-0286

Attention: Jason Rastovski

True Temper Sports, Inc.

Gentlemen and Ladies:

         This affirmation and acknowledgment is delivered to the Administrative
Agent and the Lenders pursuant to Subpart 3.1.2 of Amendment No. 3 to Credit
Agreement, dated as of the date hereof (“Amendment”), among True Temper Sports,
Inc., a Delaware corporation (the “Borrower”), the financial institutions
parties thereto (collectively, the “Lenders”), Credit Suisse First Boston
(formerly known as DLJ Capital Funding, Inc.), as syndication agent for the
Lenders, Bank One, N.A. (formerly known as The First National Bank of Chicago).
     , as administrative agent (the “Administrative Agent”) for the Lenders and
Donaldson, Lufkin & Jenrette Securities Corporation, as Lead Arranger. Reference
is also made to the Credit Agreement, dated as of September 30, 1998 (as amended
by Amendment No. 1 thereto, dated as of June 11, 1999, by Amendment No. 2
thereto, dated as of November 17, 2000, and as amended, supplemented, amended
and restated or otherwise modified through the date hereof, the “Credit
Agreement”), among the Borrower, the Lenders, the Agents and the Arranger.
Unless otherwise defined herein or the context otherwise requires, terms used
herein have the meanings provided in the Credit Agreement.

         By its signature below, the undersigned hereby acknowledges receipt of
the Amendment and the modifications to the Credit Agreement, as contemplated
thereby, which amended Credit Agreement will provide for, among other things,
the ability for the Borrower to repurchase Subordinated Notes in an aggregate
amount up to $20,000,000 under certain conditions. The undersigned hereby
reaffirms as of the Amendment Effective Date (as defined in the Amendment), its
covenants and agreements contained in each Loan Document to which it is a party,
including, in each case, as such covenants and agreements may be modified by the
Amendment. The undersigned hereby further certifies that, as of the date hereof
(both before and after giving effect to the effectiveness of the Amendment), its
representations and warranties contained in the Loan Documents to which it is a

 

Table of Contents

party are true and correct in all material respects with the same effect as if
made on the date hereof, except to the extent any thereof refer or pertain
solely to a date prior to the date hereof. The undersigned further confirms that
each Loan Document to which it is a party is and shall continue to be in full
force and effect and the same are hereby ratified and confirmed in all respects,
except that upon the occurrence of the Amendment Effective Date, all references
in such Loan Documents to the “Credit Agreement”, “Loan Documents”,
“thereunder”, “thereof”, or words of like import shall mean the Credit Agreement
and the Loan Documents, as the case may be, as in effect, as amended by the
Amendment.

-2-

Table of Contents

         IN WITNESS WHEREOF, the party hereto has executed and delivered this
Affirmation and Acknowledgment as of the date first above written.

	 	 	 	 	 
	 	 	TRUE TEMPER CORPORATION
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
By:	 	 
	 	 	 	 	

	 	 	 	 	Title:<PAGE>
                                                                    EXHIBIT 10.5

                             BKF CAPITAL GROUP, INC.
                          STOCK OPTION AWARD AGREEMENT

         THIS STOCK OPTION AWARD AGREEMENT (the "Agreement") is made and entered
into as of __________, _____, between BKF Capital Group, Inc., a Delaware
corporation (the "Company") and ______________ (the "Employee") pursuant to the
terms and conditions of the BKF Capital Group, Inc., 1998 Incentive Compensation
Plan (the "Plan"). Unless otherwise provided, capitalized terms not defined in
this Agreement shall have the meanings set forth in the Plan.

         1. Award of Options. Pursuant to the Plan, the Company hereby awards to
Employee options (the "Options") to acquire ________ shares of Company common
stock (the "Stock") at the exercise price of $____ per share (the "Exercise
Price"), subject to the terms and conditions set forth in this Agreement and the
Plan. A copy of the Plan has been delivered to the Employee. By signing below,
the Employee agrees to be bound by all the provisions of the Plan. The Options
granted hereunder are nonqualified stock options.

         2. Vesting Schedule. Subject to Sections 6 and 7 hereof, the Options
shall vest and become exercisable ____% on _______, 200_, ____% on _____, 200_,
and the remaining ____% on _______, 200_.

         3. Expiration Date. Subject to Section 6 hereof, the Options shall
expire on _______, ___ (the "Expiration Date").

         4. Payment of Exercise Price. The Exercise Price of the shares as to
which Options are exercised may be paid to the Company at the time of exercise
in cash or Stock or in such other consideration as shall be permitted by the
Committee at the time of exercise, in each case (a) pursuant to rules and
procedures established by the Committee and (b) having a total Fair Market Value
determined as of the date of exercise equal to the Exercise Price, or a
combination of cash or Stock or such other consideration having a total Fair
Market Value equal to such Exercise Price.

         5. Non-transferability. Except to the extent otherwise determined by
the Committee, the Options granted hereunder shall not be assignable or
otherwise transferable other than by will or the laws of descent and
distribution. Unless otherwise provided by the Committee, during Employee's
lifetime the Options shall be exercisable and elections with respect to the
Options may be made only by Employee or Employee's guardian or legal
representative.

         6.       Termination of Employment.

                  (a) Except to the extent provided in Section 7 hereof or any
employment agreement or severance agreement between Employee and the Company,
the provisions of this Section 6 shall apply to the Options upon Employee's
termination of employment with the Company and all subsidiaries or affiliates of
the Company ("Termination") for any reason.

                  (b) In the event of Employee's Termination by reason of death,
Disability (as defined) or Retirement (as defined), all Options shall become
immediately vested and shall be exercisable in whole or in part at any time
prior to the earlier of the Expiration Date and one year after the Termination
date.
<PAGE>
                  (c) In the event of Employee's Termination for any reason
other than as provided in Section 6(b), Options which are unvested shall be
canceled and Options which are vested and exercisable may be exercised in whole
or in part at any time prior to the earlier of the Expiration Date and 30 days
after the Termination date.

         7. Change in Control. In the event of a Change in Control (as defined)
on or prior to Termination, any Option that was not previously exercisable and
vested shall become fully exercisable and vested at the time of the Change in
Control, except to the extent of any waiver by Employee and subject to the
applicable restrictions contained in any employment agreement or severance
agreement between Employee and the Company.

         8.       Grant of Reload Options.

                  (a) Reload Options. To the extent that (i) the Exercise Price
of the Options or any Reload Options (as defined) related thereto is paid
through the delivery of Mature Shares (as defined) in accordance with Section 4
("Payment Shares") and/or (ii) Stock is paid or surrendered in satisfaction of
any withholding taxes incurred in connection with the exercise of the Option or
any related Reload Option ("Withholding Tax Shares"), Employee shall receive
additional non-qualified stock options to purchase a number of shares of Stock
equal to the sum of the Payment Shares and the Withholding Tax Shares ("Reload
Options"), provided that (A) Employee is then employed by the Company or any of
its subsidiaries, and (B) at the time of payment of the Exercise Price relating
to such Options (or Reload Options), the aggregate Fair Market Value of the
Stock purchased pursuant to the exercise of such Options (or Reload Options)
exceeds the aggregate Exercise Price of such Options (or Reload Options) by 25%
or more. The exercise price per share of Reload Options shall be the Fair Market
Value of the Stock on the date the Reload Options are granted to Employee, and
the Reload Options shall thereafter become vested and exercisable at the
earliest to occur of (w) one year after the grant date (if Employee has been
continuously employed through such date), (x) upon a Termination of Employee due
to death, Disability or Retirement, (y) a Change in Control, or (z) 90 days
prior to the expiration of the Maximum Term (as defined). The "Maximum Term" of
any Reload Option shall be equal to the remaining term of the Options to which
it relates, measured from the date upon which the Option was exercised but
subject to the same post-employment termination provisions of the Options
described in Section 6. Any Reload Option granted in connection with the
exercise of a Reload Option shall have a Maximum Term equal to the remaining
term of the Reload Option to which it relates, measured from the date on which
the prior Reload Option was exercised but subject to the same post-employment
termination provisions of the Options described in Section 6.

                  (b) Penalties for Premature Transfers. If Employee sells,
transfers, assigns or otherwise disposes of more than 50% of the number of
Profit Shares (as defined) acquired upon exercise of any Options (or Reload
Options), during the six-month period following such exercise (or such lesser
period as corresponds with the shorter of (i) the remaining term of the Reload
Options, or (ii) the vesting of the Reload Options), the Committee may, in its
discretion, preclude Employee from exercising any Reload Options then held by
Employee; provided, however, that this provision shall not proscribe transfers
by will or the laws of descent and distribution; and provided further, however,
that if any shares subject to this Section 8(b) are delivered in payment of the
exercise price of Options, in addition to the shares of Stock otherwise subject
to this
<PAGE>
Section 8(b), an equivalent number of shares issued upon exercise of
such Options shall remain subject to this Section 8(b). Employee agrees that any
action taken by the Committee hereunder shall not constitute any breach of any
obligation or duty owed by the Company to Employee. Notwithstanding the
foregoing, Employee may waive all rights to a grant of Reload Options by filing
a written waiver with the Company on the date such Reload Options would have
otherwise been granted, in which case the restriction period described above
shall not apply with respect to any shares issued in connection with the
exercise of an Option as to which Employee's Reload Option rights have been
waived.

         9.       Definitions.  For purposes of this Agreement:

                  (a) "Change in Control" means the occurrence of any of the
following:

                           (i) any "person" as such term is currently used in
Section 13(d) of the Exchange Act, other than John A. Levin or any entity
directly or indirectly controlled by him, becomes a "beneficial owner", as such
term is currently used in Rule 13d-3 promulgated under that Act, of 50% or more
of the Company's Voting Stock (as defined);

                           (ii) a majority of the Company's board of directors
(the "Board") consists of individuals other than Incumbent Directors, which term
means the members of the Board on the date of this Agreement; provided that any
individual becoming a director subsequent to such date whose election or
nomination for election was supported by a majority of the directors who then
comprised the Incumbent Directors shall be considered an Incumbent Director;

                           (iii) all or substantially all of the assets or
business of the Company are disposed of pursuant to a merger, consolidation, or
other transaction unless (A) the shareholders of the Company immediately prior
to such merger, consolidation or other transaction beneficially own, directly or
indirectly, in substantially the same proportion as they owned the Company's
Voting Stock, all of the Voting Stock or other ownership interests of the entity
or entities, if any, that succeed to the business of the Company, or (B) a
majority of the board of directors of the surviving corporation in such a
transaction consists of Incumbent Directors or directors appointed by Levin
Management Co., Inc. but excluding directors who were members of the other
entity's board of directors;

                           (iv) the Board adopts any plan of liquidation
providing for the distribution of all or substantially all of the Company's
assets; or

                           (v) the Company combines with another company and is
the surviving corporation but, immediately after the combination, the
shareholders of the Company immediately prior to the combination hold, directly
or indirectly, 50% or less of the Voting Stock of the combined company (there
being excluded from the number of shares held by such shareholders, but not from
the Voting Stock of the combined company, any shares received by affiliates of
such other company in exchange for securities of such other company).

                  (b) "Disability" means the Employee's inability, due to
physical or mental incapacity, to substantially perform his duties and
responsibilities of employment for a period of 180 days in any consecutive
nine-month period.
<PAGE>
                  (c) "Mature Shares" shall mean any of the following: (i) Stock
purchased by Employee in the open market, (ii) Stock acquired by Employee upon
exercise of any option that has been held by Employee for no less than six
months after the exercise date, or (iii) any stock of the Company delivered
pursuant to a Deferred Stock Award Agreement that is held by Employee for no
less than six months after the delivery date of such stock as defined in the
Deferred Stock Award Agreement.

                  (d) "Profit Shares" shall mean the number of shares of Stock
acquired pursuant to the exercise of an Option (or Reload Option) having a Fair
Market Value on the date of exercise equal to the excess of the aggregate Fair
Market Value of the Stock purchased upon exercise of such Option (or Reload
Option) over the aggregate Exercise Price of such Option (or Reload Option).

                  (e) "Retirement" means Employee's Termination after reaching
65 years of age, or after reaching 55 years of age and completing at least 10
years of service with the Company or any of its subsidiaries or affiliates.

                  (f) "Voting Stock" means the issued and outstanding capital
stock or other securities of any class or classes having general voting power,
under ordinary circumstances in the absence of contingencies, to elect the
directors of a corporation.

         10. Withholding Tax. Employee may be subject to withholding taxes as a
result of the exercise or settlement of an Option or other payment in respect of
an Option. Unless the Committee permits otherwise, Employee shall pay to the
Company in cash, promptly when the amount of such obligations become
determinable, all applicable federal, state, local and foreign withholding taxes
that the Company in its discretion determines result from each such exercise,
settlement or payment. Unless the Committee otherwise determines and subject to
such rules and procedures as the Committee may establish, Employee may make an
election to have shares of Stock withheld by the Company or to tender any such
securities to the Company to pay the amount of tax that the Company in its
discretion determines to be required so to be withheld by the Company upon
exercise of an Option, subject to satisfying any applicable requirements for
compliance with Section 16(b) of the Exchange Act. Any shares of Stock or other
securities so withheld or tendered will be valued as of the date they are
withheld or tendered, provided that Stock shall be valued at Fair Market Value
on such date. Unless otherwise permitted by the Committee, the value of shares
withheld or tendered may not exceed the required federal, state, local and
foreign withholding tax obligations as computed by the Company.

         11. Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.
<PAGE>
         12. Governing Law. This Agreement shall be governed by the laws of the
State of New York, without regard to conflict of law principles.

                                   BKF Capital Group, Inc.

                                   By: ____________________________
                                       Name:    John A. Levin
                                       Title:   Chief Executive Officer

                                       ____________________________
                                       [Name of Employee]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00037-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00037-of-00352.parquet"}]]