Document:

Employment Agreement between P. Howard Edelstein and NYFIX, Inc.

    Exhibit
      10.2

     

    EMPLOYMENT
      AGREEMENT

     

    This
      EMPLOYMENT AGREEMENT is made and entered into as of this 4th
      day of
      September, 2006, by and between NYFIX, Inc. (the “Company”),
      and
      Howard Edelstein (“Employee”).

     

    W 
      I  T  N  E  S 
S 
      E 
      T 
      H
      :

     

    WHEREAS,
      the Company desires to employ Employee and to enter into an agreement embodying
      the terms of such employment (this “Agreement”)
      and
      Employee desires to enter into this Agreement and to accept such employment,
      subject to the terms and provisions of this Agreement.

     

    NOW,
      THEREFORE, in consideration of the promises and mutual covenants contained
      herein and for other good and valuable consideration, the receipt and
      sufficiency of which are mutually acknowledged, the Company and Employee hereby
      agree as follows:

     

    Section
      1.  Definitions.

     

    (a)  “Accrued
      Obligations”
shall
      mean (i) all accrued but unpaid Base Salary through the date of termination
      of
      Employee’s employment hereunder; (ii) any unpaid or unreimbursed expenses
      incurred in accordance with Company policy, including amounts due under
Section
      7
      hereof
      to the extent incurred prior to termination of employment; (iii) any benefits
      provided under the Company’s employee benefit plans upon a termination of
      employment, in accordance with the terms therein; and (iv) any rights to
      indemnification pursuant to Section
      12
      hereof
      or otherwise by virtue of Employee’s position as an officer or director of the
      Company or its subsidiaries and the benefits
      under any directors’ and officers’ liability insurance policy maintained by the
      Company, in accordance with its terms thereof.

     

    (b)  “Affiliate”
shall
      mean, as to any Person, any other Person that controls, is controlled by, or
      is
      under common control with, such Person.

     

    (c)  “Annual
      Bonus”
shall
      have the meaning set forth in Section
      4(b)
      below.

     

    (d)  “Base
      Salary”
shall
      mean the salary, and any increase thereof, provided for in Section
      4(a)
      below.

     

    (e)  “Board”
shall
      mean the Board of Directors of the Company.

     

    (f)  “Cause”
shall
      mean (i)
      any
      act of gross negligence or willful misconduct on the part of Employee in the
      course of his employment hereunder, which is, or could reasonably be expected
      to
      result in, material injury to the business or reputation of the Company or
      its
      affiliates; (ii) willful failure or refusal by Employee to perform in any
      material respect his duties or responsibilities under the employment agreement;
      (iii) misappropriation by Employee of any assets or business opportunities
      of
      the Company or any of its Affiliates; (iv) embezzlement or fraud committed
      by
      Employee or at his direction; (v) Employee’s conviction by a court of competent
      jurisdiction of, or pleading “guilty” or “no contest” to, (x) a felony, or (y)
      any other crime of moral turpitude;
      or (vi)
      Employee’s breach of any material provision of

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        Exhibit
          10.2-Edelstein Employment Agreement

      

    

     

    the
      employment agreement.
      For
      purposes of this definition, no act or failure to act shall be deemed “willful”
unless done or omitted in bad faith or without a reasonable belief that such
      act
      or omission was in the best interests of the Company.

     

    (g)  “Change
      in Control”
      (i)
      the
      acquisition by any person, directly or indirectly, through a purchase, merger
      or
      other acquisition transaction,
      or series of purchases, mergers or other acquisition transactions, of shares
      of
      Common Stock representing 50% or more of the total shares of Common Stock then
      outstanding; (ii) a consolidation, merger, reorganization or other form of
      acquisition of or by the Company or other transaction in which the Company’s
      shareholders retain less than 40% (by vote or value) of the surviving entity
      upon consummation of such transaction; (iii) a sale or other transfer of
      substantially all of the Company’s assets or (iv) the individuals who were
      directors of the Company immediately prior to the Closing Date (together with
      the directors appointed by Warburg
      Pincus Private Equity IX, L.P. and
      any
      new directors whose election or appointment was approved by the directors then
      in office who were either directors as of the Closing Date or whose election
      or
      appointment was previously so approved) ceasing to constitute a majority of
      the
      board of directors of the Company or any surviving entity immediately after
      the
      Closing Date.

     

    (h)  “Closing
      Date”
shall
      have the meaning set forth in the Purchase Agreement.

     

    (i)  “Code”
shall
      mean the Internal Revenue Code of 1986, as amended.

     

    (j)  “Commencement
      Date”
shall
      mean September 5, 2006.

     

    (k)  “Common
      Stock”
shall
      mean common stock, par value $0.001 per share, of the Company.

     

    (l)  “Company”
except
      as otherwise expressly set forth herein, shall have the meaning set forth in
      the
      preamble hereto.

     

    (m)  
      “Competitive
      Activities”
shall
      mean any business activities in which the Company or any of its subsidiaries
      are
      engaged (or
      have
      committed plans to engage) during
      the Term of Employment,
      or,
      following termination of Employee’s employment hereunder, were engaged in (or
      had committed plans to engage in) at the time of such termination of
      employment.

     

    (n)  
      “Confidential
      Information”
shall
      mean confidential or proprietary trade secrets, client lists, client identities
      and information, information regarding service providers, investment
      methodologies, marketing data or plans, sales plans, management organization
      information, operating policies or manuals, business plans or operations or
      techniques, financial records or data, or other financial, commercial, business
      or technical information (i)
      relating to the Company or any of its subsidiaries, or (ii) that the Company
      or
      any of its subsidiaries may receive belonging to suppliers, customers or others
      who do business with the Company,
      but
      shall exclude any information that is in the public domain or hereafter enters
      the public domain, in each case without the breach by Employee of Section
      9(a)
      below.

     

    (o)  
      “Developments”
shall
      have the meaning set forth in Section
      9(d)
      below.

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        Exhibit
          10.2-Edelstein Employment Agreement

      

    

     

    (p)  “Disability”
      shall
      mean any physical or mental disability or infirmity that prevents the
      performance of Employee’s duties for a period of (i) ninety (90) consecutive
      days or (ii) one hundred twenty (120) non-consecutive days during any twelve
      (12) month period. Any question as to the existence, extent or potentiality
      of
      Employee’s Disability upon which Employee and the Company cannot agree shall be
      determined by a qualified, independent physician selected by the Company and
      approved by Employee (which approval shall not be unreasonably withheld). The
      determination of any such physician shall be final and conclusive for all
      purposes of this Agreement.

     

    (q)  “Employee”
shall
      have the meaning set forth in the preamble hereto.

     

    (r)  “Good
      Reason”
shall
      mean, without Employee’s consent, (i)
      any
      reduction in Base Salary, (ii) the relocation of Employee’s principal place of
      employment outside of the New York metropolitan area, or (iii) a breach by
      the
      Company of any material provision of the employment agreement.

     

    (s)  “Interfering
      Activities”
shall
      mean (i) encouraging, soliciting, or inducing, or in any manner attempting
      to
      encourage, solicit, or induce, any individual employed by, or individual or
      entity providing consulting services to, the Company or any of its subsidiaries
      to terminate such employment or consulting services; provided, that the
      foregoing shall not be violated by general advertising not targeted at employees
      or consultants of the Company; (ii) hiring any individual who was employed
      by
      the Company or any of its subsidiaries within the six (6) month period prior
      to
      the date of such hiring; or (iii) encouraging, soliciting or inducing, or in
      any
      manner attempting to encourage, solicit or induce any customer, supplier,
      licensee or other business relation of the Company or any of its subsidiaries
      to
      cease doing business with or materially reduce the amount of business conducted
      with the Company or its subsidiaries, or in any way interfere with the
      relationship between any such customer, supplier, licensee or business relation
      and the Company or its subsidiaries.

     

    (t)  “Person”
shall
      mean any individual, corporation, partnership, limited liability company, joint
      venture, association, joint-stock company, trust (charitable or non-charitable),
      unincorporated organization or other form of business entity.

     

    (u)  “Purchase
      Agreement”
shall
      mean that certain Securities Purchase Agreement by and between the Company
      and
      the Warburg Investors, dated even herewith.

     

    (v)  “Restricted
      Area”
shall
      mean any State of the United States of America or any other jurisdiction in
      which the Company or its subsidiaries are engaged (or have committed plans
      to
      engage) in business during the Term, or, following termination of Employee’s
      employment, were engaged (or had committed plans to engage) in business at
      the
      time of such termination of employment.

     

    (w)  “Restricted
      Period”
shall
      mean the period commencing on the date of the employment agreement and extending
      to the twelve (12) month anniversary of Employee’s termination of employment for
      any reason; provided,
      however,
      that
      the Company may elect, by providing Employee written notice of such election
      within three (3) months following any termination of employment, to extend
      the
      Restricted Period by up to an additional twelve (12)

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        Exhibit
          10.2-Edelstein Employment Agreement

      

    

     

    months
      following the date of such termination, in which case, the Company shall be
      required to pay Employee an amount equal to his monthly Base Salary plus
      one-twelfth (1/12th)
      of
      Employee’s target Annual Bonus during each month of the applicable period of
      extension.

     

    (x)  “Severance
      Term”
shall
      mean the twelve (12) month period immediately following Employee’s termination
      of employment hereunder by the Company without Cause or by Employee with Good
      Reason.

     

    (y)  “Term
      of Employment”
shall
      mean the period specified in Section
      2
      below.

     

    (z)  “Warburg
      Investors”
shall
      mean Warburg
      Pincus Private Equity IX, L.P. and any other fund affiliated with Warburg Pincus
      & Co., a New York general partnership.

     

    Section
      2.  Acceptance
      and Term of Employment.

     

    The
      Company agrees to employ Employee and Employee agrees to serve the Company
      on
      the terms and conditions set forth herein. The
      Term
      of
      Employment shall commence on the
      Commencement Date and shall continue until Employee is terminated as
      provided
      in Section 8 hereof.

     

    Section
      3.  Position,
      Duties and Responsibilities; Place of Performance.

     

    (a)  During
      the Term of Employment, Employee shall be employed and serve as the Chief
      Executive Officer of the Company and shall have such duties typically associated
      with such title. Subject to the foregoing, Employee also agrees to serve as
      an
      officer and/or director of the Company or any parent or subsidiary of the
      Company, as specified by the Board, in each case without additional
      compensation. In addition, as soon as practicable following the Commencement
      Date, Employee shall be appointed to the Board, and shall serve as a member
      of
      the Board during the Term of Employment without additional
      compensation.

     

    (b)  Subject
      to the terms and conditions set forth in this Agreement, Employee shall devote
      his full business time, attention, and efforts to the performance of his duties
      under this Agreement and shall not engage in any other business or occupation
      during the Term of Employment, including, without limitation, any activity
      that
      (x) conflicts with the interests of the Company or its subsidiaries, (y)
      interferes with the proper and efficient performance of his duties for the
      Company, or (z) interferes with the exercise of his judgment in the Company’s
      best interests. Notwithstanding the foregoing, nothing herein shall preclude
      Employee from (i) serving, with the prior written consent of the Board, as
      a
      member of the board of directors or advisory boards (or their equivalents in
      the
      case of a non-corporate entity) of non-competing businesses and charitable
      organizations, (ii) engaging in charitable activities and community affairs,
      (iii) subject to the terms and conditions set forth in Section
      9
      hereof,
      managing his personal investments and affairs, and (iv) performing such
      activities set forth on Exhibit
      A,
      attached hereto; provided,
      however,
      that
      the activities set out in clauses (i), (ii), (iii) and (iv) shall be limited
      by
      Employee so as not to materially interfere, individually or in the aggregate,
      with the performance of his duties and responsibilities hereunder.

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        Exhibit
          10.2-Edelstein Employment Agreement

      

    

     

    (c)  Employee’s
      principal place of employment shall be at the Company’s New York, New York
      offices, although Employee understands and agrees that he may be required to
      travel from time to time in the connection with his performance of duties
      hereunder.

     

    Section
      4.  Compensation.
      During
      the Term of Employment, Employee shall be entitled to the following
      compensation:

     

    (a)  Base
      Salary. 
      Employee shall be paid an annualized Base Salary, payable in accordance with
      the
      regular payroll practices of the Company, of not less than $495,000, subject
      to
      increase, if any, as may be approved in writing by the Board, but not to
      decrease from the then current Base Salary.

     

    (b)  Annual
      Bonus. 
      Employee shall be eligible for an annual incentive bonus award determined by
      the
      Board in respect of each fiscal year during the Term of Employment, commencing
      with the fiscal year ending December 31, 2007 (the “Annual
      Bonus”).
      The
      target Annual Bonus for each fiscal year shall be 100% of Base Salary. The
      actual Annual Bonus payable in respect of each fiscal year shall be based upon
      the level of achievement of annual Company performance objectives for such
      fiscal year, as determined by the Board in consultation with
      Employee.
      In
      connection with its determination of annual performance objectives, the Board
      and Employee will also determine Annual Bonus amounts in excess of the target
      Annual Bonus for achievement in excess of target performance objectives.
      Notwithstanding the foregoing, (i) the Annual Bonus payable in respect
      of  the year ending December 31, 2006 shall in no event be less than 50% of
      the Base Salary paid to Employee through December 31, 2006, which shall be
      pro
      rated to reflect the number of days Employee is employed by the Company during
      such fiscal year;  and (ii)  the Annual Bonus payable in respect
      of the Company's fiscal year ending December 31, 2007 shall in no event be
      less
      than 50% of Base Salary. The Annual Bonus shall be paid to Employee at the
      same
      time as annual bonuses are generally payable to other senior executives of
      the
      Company.

     

    (c)  Equity
      Compensation. 
As
      soon as practicable following the Commencement Date, the Company shall grant
      Employee significant equity compensation in the form of stock options or
      restricted stock (or as may otherwise be mutually agreed by Employee and the
      Board) under either its existing incentive plans, or a new plan adopted by
      the
      Company following the Commencement Date. During any period of time that Employee
      has not received such options pursuant to this subsection (c), in lieu of the
      guaranteed Annual Bonus being calculated at 50% of Base Salary for such period
      (as set forth in Section
      4(b)
      above
      for the period ending December 31, 2007), the guaranteed Annual Bonus during
      such period shall be 100% of Base Salary (e.g.,
      if
      equity options are not granted until half-way through the fiscal year ending
      December 31, 2007, the guaranteed Annual Bonus for such period shall equal
1⁄2 *
      100% of Base Salary plus 1⁄2 * 50% of Base Salary).

     

    Section
      5.  Employee
      Benefits.
      

     

    During
      the Term of Employment, Employee shall be entitled to participate
      in health, insurance, retirement and other perquisites and benefits generally
      provided to other senior executives of the Company that are made available
      from
      time to time, provided that the Company’s health plan shall in any event provide
      Employee with primary care coverage in the

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        Exhibit
          10.2-Edelstein Employment Agreement

      

    

     

    greater
      Boston, Massachusetts area. Employee shall also be entitled to the same number
      of holidays, vacation and sick days as are generally allowed to senior
      executives of the Company in accordance with Company policies in effect from
      time to time, but in no event less than four (4) weeks vacation per year and
      life insurance coverage at up to 3 times Base Salary (subject to insurability
      at
      commercially reasonable rates).

     

    Section
      6.  “Key-Man”
      Insurance.

     

    At
      any
      time during the Term of Employment, the Company shall have the right to insure
      the life of Employee for the sole benefit of the Company, in such amounts,
      and
      with such terms, as it may determine. All premiums payable thereon shall be
      the
      obligation of the Company. Employee shall have no interest in any such policy,
      but agrees to reasonably cooperate with the Company in taking out such insurance
      by submitting to physical examinations, supplying all information reasonably
      required by the insurance company, and executing all necessary documents,
      provided that no financial obligation or liability is imposed on Employee by
      any
      such documents.

     

    Section
      7.  Reimbursement
      of Business Expenses; Moving Allowance.

     

    (a)  Employee
      is authorized to incur reasonable business expenses in carrying out his duties
      and responsibilities under this Agreement and the Company shall promptly
      reimburse him for all such reasonable business expenses incurred in connection
      with carrying out the business of the Company, subject to documentation in
      accordance with the Company’s policy, as in effect from time to
      time.

     

    (b)  The
      Company shall provide Employee a one-time moving allowance equal to $150,000,
      such amount to be paid to Employee, subject to his continued employment, on
      or
      prior to the Company’s first regularly scheduled payroll date of the 2007
      calendar year. 

     

    Section
      8.  Termination
      of Employment.

     

    (a)  General. 
      The Term of Employment shall terminate upon the earliest to occur of (i)
      Employee’s death, (ii) a termination by reason of a Disability, (iii) a
      termination by the Company with or without Cause, or (iv) a termination by
      Employee with or without Good Reason. Upon
      any
      termination of Employee’s employment for any reason, except as may otherwise be
      requested by the Company in writing and agreed upon in writing by Employee,
      Employee shall resign from any and all directorships, committee memberships
      or
      any other positions Employee holds with the Company or any of its subsidiaries
      or Affiliates.

     

    (b)  Termination
      due to Death or Disability. 
      Employee’s employment shall terminate automatically upon his death. The
      Company may terminate Employee’s employment immediately upon the occurrence of a
      Disability, such termination to be effective upon Employee’s receipt of written
      notice of such termination. In
      the
      event Employee’s employment is terminated due to his death or Disability,
      Employee or his estate or his beneficiaries, as the case may be, shall be
      entitled to:

     

    (i)  the
      Accrued Obligations; 

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        Exhibit
          10.2-Edelstein Employment Agreement

      

    

     

    (ii)  any
      unpaid Annual Bonus in respect to any completed fiscal year which has ended
      prior to the date of such termination, such amount to be paid at the same time
      it would otherwise be paid to Employee had no such termination occurred;
      and

     

    (iii)  provided
      that applicable annual performance objectives are achieved for the fiscal year
      in which such termination occurs, a
      pro
      rata Annual Bonus (determined using the target
      Annual Bonus if such termination occurs on or prior to December 31, 2007, and
      using the Annual Bonus paid or payable for the immediately prior fiscal year
      for
      terminations after December 31, 2007)
      based on
      the number of days elapsed from the commencement of such fiscal year through
      and
      including the date of such termination, such amount to be paid when the Annual
      Bonus would otherwise have been paid absent such termination.

     

    Except
      as
      set forth in this Section
      8(b),
      following Employee’s termination by reason of his death or Disability, Employee
      shall have no further rights to any compensation or any other benefits under
      this Agreement.

     

    (c)  Termination
      by the Company for Cause.

     

    (i)  A
      termination for Cause shall not take effect unless the provisions of this
      subsection (i) are complied with. Employee shall be given not less than fifteen
      (15) days written notice by the Board of the intention to terminate his
      employment for Cause, such notice to state in detail the particular act or
      acts
      or failure or failures to act that constitute the grounds on which the proposed
      termination for Cause is based. Employee shall have fifteen (15) days after
      the
      date that such written notice has been given to Employee in which to cure such
      act or acts or failure or failures to act, to the extent such cure is possible.
      If he fails to cure such act or acts or failure or failures to act, the
      termination shall be effective on the date immediately following the expiration
      of the fifteen (15) day notice period. If cure is not possible, the termination
      shall be effective on the date of receipt of such notice by Employee. During
      any
      cure period provided hereunder, the Board may,
      in its
      sole and absolute discretion, prohibit
      Employee from entering the premises of the Company (or any subsidiary thereof)
      or otherwise performing his duties hereunder, and any such prohibition shall
      in
      no event constitute an event pursuant to which Employee may terminate employment
      with Good Reason; provided,
      however,
      that if
      cure is possible, and Employee can reasonably demonstrate to the Board that
      he
      desires to enter the premises of the Company (or a subsidiary thereof) or to
      otherwise perform his duties hereunder solely to attempt to cure the act or
      acts
      or failure or failures to act that constitute the grounds on which the proposed
      termination for Cause is based, Employee shall be permitted to enter the
      premises of the Company (or a subsidiary thereof) or otherwise to perform his
      duties hereunder solely for the purposes of curing such act or acts or failure
      or failures to act.

     

    (ii)  In
      the
      event the Company terminates Employee’s employment for Cause, he shall be
      entitled only to the Accrued Obligations.
      Following such termination of Employee’s employment for Cause, except as set
      forth in this Section
      8(c)(ii),
      Employee shall have no further rights to any compensation or any other benefits
      under this Agreement.

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        Exhibit
          10.2-Edelstein Employment Agreement

      

    

     

    (d)  Termination
      by the Company without Cause. 
      The Company may terminate Employee’s employment at any time without Cause,
      effective upon Employee’s receipt of written notice of such termination. In the
      event Employee’s employment is terminated by the Company without Cause (other
      than due to death or Disability), Employee shall be entitled to:

     

    (i)      
      the
      Accrued Obligations;

     

    (ii)  any
      unpaid Annual Bonus in respect to any completed fiscal year which has ended
      prior to the date of such termination, such amount to be paid at the same time
      it would otherwise be paid to Employee had no such termination occurred;

     

    (iii)  provided
      that applicable annual performance objectives are achieved for the fiscal year
      in which such termination occurs, a
      pro
      rata Annual Bonus (determined using the target
      Annual Bonus if such termination occurs on or prior to December 31, 2007, and
      using the Annual Bonus paid or payable for the immediately prior fiscal year
      for
      terminations after December 31, 2007)
      based on
      the number of days elapsed from the commencement of such fiscal year through
      and
      including the date of such termination, such amount to be paid when the Annual
      Bonus would otherwise have been paid absent such termination

     

    (iv)  continuation
      of Base Salary for the Severance Term, payable in accordance with the Company’s
      regular payroll practices, 

     

    (v)      
      an
      amount
      equal to the greater of (x) two (2) times the Annual Bonus paid or payable
      in
      respect of the fiscal year immediately preceding the fiscal year in which such
      termination occurs, or (y) 150% of Base Salary, such amount to be paid in
      substantially equal installments over the Severance Term and at the same times
      as Base Salary continuation is paid pursuant to sub-clause (iv) above;

     

    (vi)  continuation,
      during the Severance Term, of the health and life insurance benefits provided
      to
      Employee and his covered dependents under the Company’s health plans in effect
      as of the date of such termination, it being understood and agreed that (A)
      Employee shall be required to pay that portion of the cost of such health and
      life insurance benefits as Employee was required to pay (including through
      customary deductions from Employee’s paycheck) as of the date of Employee’s
      termination of employment with the Company, and (B) notwithstanding the
      foregoing, the Company’s obligation to provide such continuation of benefits
      shall terminate prior to the expiration of the Severance Term in the event
      that
      Employee becomes eligible to receive any such or similar benefits while employed
      by or providing service to, in any capacity, any other business or entity during
      the Severance Term; 

     

    (vii)  reimbursement
      for reasonable expenses incurred by Employee for executive outplacement
      assistance; and

     

    (viii)  if
      such
      termination occurs within the twelve (12) month period following a Change in
      Control, acceleration of vesting on all equity granted pursuant to Section
      4(c)
      above.

     

    
      
        
        

      

      
        -8-

        
          

        

      

      
        Exhibit
          10.2-Edelstein Employment Agreement

      

    

     

    Notwithstanding
      the foregoing, the payments and benefits described in subsections (iii) through
      (vii) above shall immediately cease, and the Company shall have no further
      obligations to Employee with respect thereto, in the event that Employee
      breaches any provision of Section
      9
      hereof.

     

    Following
      such termination of Employee’s employment by the Company without Cause, except
      as set forth in this Section
      8(d),
      Employee shall have no further rights to any compensation or any other benefits
      under this Agreement.

     

    (e)  Termination
      by Employee with Good Reason. 
      Employee may terminate his employment with Good Reason by providing the Company
      fifteen (15) days’ written notice setting forth with reasonable specificity the
      event that constitutes Good Reason, which written notice, to be effective,
      must
      be provided to the Company within sixty (60) days of the occurrence of such
      event. During such fifteen (15) day notice period, the Company shall have a
      cure
      right (if curable), and if not cured within such period, Employee’s termination
      will be effective upon the date immediately following the expiration of the
      fifteen (15) day notice period, and Employee shall be entitled to the same
      payments and benefits as provided in Section
      8(d)
      above
      for a termination without Cause, it being agreed that Employee’s right to any
      such payments and benefits shall be subject to the same terms and conditions
      as
      described in Section
      8(d)
      above.
      Following such termination of Employee’s employment by Employee with Good
      Reason, except as set forth in this Section
      8(e),
      Employee shall have no further rights to any compensation or any other benefits
      under this Agreement.

     

    (f)  Termination
      by Employee without Good Reason. 
      Employee may terminate his employment without Good Reason by providing the
      Company sixty (60) days’ written notice of such termination. In the event of a
      termination of employment by Employee under this Section
      8(f),
      Employee shall be entitled only to the Accrued Obligations. In
      the
      event of termination of Employee’s employment under this Section
      8(f),
      the
      Company may, in its sole and absolute discretion, by written notice accelerate
      such date of termination and still have it treated as a termination without
      Good
      Reason. Following
      such termination of Employee’s employment by Employee without Good Reason,
      except as set forth in this Section
      8(f),
      Employee shall have no further rights to any compensation or any other benefits
      under this Agreement.

     

    (g)  Release. 
      Notwithstanding any provision herein to the contrary, the Company may require
      that, prior to payment of any amount or provision of any benefit pursuant to
      subsections (d)
      or
(e)
      of this
Section
      8
      (other
      than the Accrued Obligations), Employee
      shall have executed a general release in substantially the same form as attached
      hereto as Exhibit
      B,
      and any
      waiting periods contained in such release shall have expired. 

    

      Section
        9.  Restrictive
        Covenants.
        Employee acknowledges and agrees that (A) the agreements and covenants contained
        in this Section
        9
        are (i)
        reasonable and valid in geographical and temporal scope and in all other
        respects, and (ii) essential to protect the value of the Company’s business and
        assets, and (B) by his employment with the Company, Employee will obtain
        knowledge, contacts, know-how, training and experience and there is a
        substantial probability that such knowledge, know-how, contacts, training
        and
        experience could be used to the substantial advantage of a competitor of
        the
        Company and to the Company’s

       

      
        
          
          

        

        
          -9-

          
            

          

        

        
          Exhibit
            10.2-Edelstein Employment Agreement

        

      

       

      substantial
        detriment. For purposes of this Section
        9,
        references to the Company shall be deemed to include its
        subsidiaries.

    

     

    (a)  Confidential
      Information. 
      At any time during and after the end of the Term of Employment, without the
      prior written consent of the Board, except to the extent required by an order
      of
      a court having jurisdiction or under subpoena from an appropriate government
      agency, in which event, Employee shall, to the extent legally permitted, consult
      with the Board prior to responding to any such order or subpoena, and except
      as
      he in good faith believes necessary or desirable in the performance of his
      duties hereunder, Employee shall not disclose to or use for the benefit of
      any
      third party any Confidential Information.

     

    (b)  Non-Competition. 
      Employee
      covenants and agrees that during the Restricted Period, Employee shall not,
      directly or indirectly, individually or jointly, own any interest in, operate,
      join, control or participate as a partner, director, principal, officer, or
      agent of, enter into the employment of, act as a consultant to, or perform
      any
      services for any Person (other than the Company), that engages in any
      Competitive Activities within the Restricted Area. Notwithstanding anything
      herein to the contrary, this Section
      9(b)
      shall
      not prevent Employee from acquiring as an investment securities representing
      not
      more than three percent (3%) of the outstanding voting securities of any
      publicly-held corporation or from being a passive investor in any mutual fund,
      hedge fund, private equity fund or similar pooled account so long as Employee’s
      interest therein is less than three percent (3%) and he has no role in selecting
      or managing investments thereof.

     

    (c)  Non-Interference. 
      During the Restricted Period, Employee shall not, directly or indirectly, for
      his own account or for the account of any other Person, engage in Interfering
      Activities.

     

    (d)  Return
      of Documents. 
      In the event of the termination of Employee’s employment for any reason,
      Employee shall deliver to the Company all of (i) the property of the Company,
      and (ii) the documents and data of any nature and in whatever medium of the
      Company, and he shall not take with him any such property, documents or data
      or
      any reproduction thereof, or any documents containing or pertaining
      to
      any
      Confidential Information.

     

    (e)  Works
      for Hire. 
      Employee agrees that the Company shall own all
      right,
      title and interest throughout the world in and to any and all inventions,
      original works of authorship, developments, concepts, know-how, improvements
      or
      trade secrets, whether or not patentable or registerable under copyright or
      similar laws, which Employee may solely or jointly conceive or develop or reduce
      to practice, or cause to be conceived or developed or reduced to practice during
      the Term of Employment, whether or not during regular working hours, provided
      they either (i) relate at the time of conception or development to the actual
      or
      demonstrably proposed business or research and development activities of the
      Company; (ii) result from or relate to any work performed for the Company;
      or
      (iii) are developed through the use of Confidential Information and/or Company
      resources or in consultation with Company personnel (collectively referred
      to as
“Developments”).
      Employee
      hereby assigns all right, title and interest in and to any and all of these
      Developments to the Company. Employee agrees to assist the Company, at the
      Company’s expense (but for no other consideration of any kind), to further
      evidence, record and perfect such assignments, and to perfect, obtain, maintain,
      enforce, and

     

    
      
        
        

      

      
        -10-

        
          

        

      

      
        Exhibit
          10.2-Edelstein Employment Agreement

      

    

     

    defend
      any rights specified to be so owned or assigned. Employee hereby irrevocably
      designates and appoints the Company and its agents as attorneys-in-fact to
      act
      for and on Employee’s behalf to execute and file any document and to do all
      other lawfully permitted acts to further the purposes of the foregoing with
      the
      same legal force and effect as if executed by Employee. In addition, and not
      in
      contravention of any of the foregoing, Employee acknowledges that all original
      works of authorship which are made by him (solely or jointly with others) within
      the scope of employment and which are protectable by copyright are “works made
      for hire,” as that term is defined in the United States Copyright Act (17 USC
      Sec. 101). To the extent allowed by law, this includes all rights of paternity,
      integrity, disclosure and withdrawal and any other rights that may be known
      as
      or referred to as “moral rights.” To the extent Employee retains any such moral
      rights under applicable law, Employee hereby waives such moral rights and
      consents to any action consistent with the terms of this Agreement with respect
      to such moral rights, in each case, to the full extent of such applicable law.
      Employee will confirm any such waivers and consents from time to time as
      requested by the Company.

     

    (f)  Blue
      Pencil. 
      If any court of competent jurisdiction shall at any time deem the duration
      or
      the geographic scope of any of the provisions of this Section
      9
      unenforceable, the other provisions of this Section
      9
      shall
      nevertheless stand and the duration and/or geographic scope set forth herein
      shall be deemed to be the longest period and/or greatest size permissible by
      law
      under the circumstances, and the parties hereto agree that such court shall
      reduce the time period and/or geographic scope to permissible duration or
      size.

     

    Section
      10.  Breach
      of Restrictive Covenants. 

     

    Without
      limiting the remedies available to the Company, Employee acknowledges that
      a
      breach of any of the covenants contained in Section
      9
      hereof
      may result in material irreparable injury to the Company or its subsidiaries
      for
      which there is no adequate remedy at law, that it will not be possible to
      measure damages for such injuries precisely and that, in the event of such
      a
      breach or threat thereof, the Company (or any subsidiary thereof, as applicable)
      shall be entitled to obtain a temporary restraining order and/or a preliminary
      or permanent injunction, without the necessity of proving irreparable harm
      or
      injury as a result of such breach or threatened breach of Section
      9
      hereof,
      restraining Employee from engaging in activities prohibited by Section
      9
      hereof
      or such other relief as may be required specifically to enforce any of the
      covenants in Section
      9
      hereof.

     

    Section
      11.  Representations
      and Warranties of Employee.
      

     

    Employee
      represents and warrants to the Company that: 

     

    (a)  Employee’s
      employment will not conflict with or result in his breach of any agreement
      to
      which he is a party or otherwise may be bound; 

     

    (b)  Employee
      has not violated, and in connection with his employment with the Company will
      not violate, any non-solicitation, non-competition or other similar covenant
      or
      agreement of a prior employer by which he is or may be bound; and 

     

    
      
        
        

      

      
        -11-

        
          

        

      

      
        Exhibit
          10.2-Edelstein Employment Agreement

      

    

     

    (c)  In
      connection with Employee’s employment with the Company, he will not use any
      confidential or proprietary information that he may have obtained in connection
      with employment with any prior employer.

     

    Section
      12.  Indemnification

     

    Subject
      to the terms and conditions of the Articles of Association and By-Laws of the
      Company (in each case, as in effect from time to time), the Company agrees
      to
      indemnify and hold Employee harmless to the fullest extent permitted by the
      laws
      of the State of Delaware, as in effect at the time of the subject act or
      omission. In connection therewith, Employee shall be entitled to the protection
      of insurance policies, which the Company shall maintain at commercially
      reasonable levels, for
      the
      benefit of the Company’s directors and officers, against all costs, charges and
      expenses whatsoever incurred or sustained by Employee in connection with any
      action, suit or proceeding to which he may be made a party by reason of his
      being or having been a director, officer or employee of the Company.
      This
      provision shall survive any termination of Employee’s employment
      hereunder.

     

    Section
      13.  Taxes.
      

     

    The
      Company may withhold from any payments made under this Agreement all applicable
      taxes, including but not limited to income, employment and social insurance
      taxes, as shall be required by law. Employee
      acknowledges and represents that the Company has not provided any tax advice
      to
      him in connection with this Agreement and that he has been advised by the
      Company to seek tax advice from his own tax advisors regarding this Agreement
      and payments that may be made to him pursuant to this Agreement,
      including specifically, the application of the provisions of Section 409A of
      the
      Code to such payments.

     

    Section
      14.  Mitigation;
      Set Off.
      

     

    The
      Company’s obligation to pay Employee the amounts provided and to make the
      arrangements provided hereunder shall be subject to set-off, counterclaim or
      recoupment of amounts owed by Employee to the Company or its Affiliates.
      Employee shall not be required to mitigate the amount of any payment provided
      for pursuant to this Agreement by seeking other employment or otherwise and
      the
      amount of any payment provided for pursuant to this Agreement shall not be
      reduced by any compensation earned as a result of Employee’s other employment or
      otherwise.

     

    Section
      15.  Delay
      in Payment.
      

     

    Notwithstanding
      any provision in this Agreement to the contrary, any payment otherwise required
      to be made hereunder to Employee at any date as a result of the termination
      of
      Employee’s employment shall be delayed for such period of time as may be
      necessary to meet the requirements of section 409A(a)(2)(B)(i) of the Code.
      On
      the earliest date on which such payments can be made without violating the
      requirements of section 409A(a)(2)(B)(i) of the Code, there shall be paid to
      Employee, in a single cash lump sum, an amount equal to the aggregate amount
      of
      all payments delayed pursuant to the preceding sentence.

     

    
      
        
        

      

      
        -12-

        
          

        

      

      
        Exhibit
          10.2-Edelstein Employment Agreement

      

    

     

    
      Section
        16.  Agreement
        to Further Review and Revise.
        The
        parties agree to review and revise this Agreement to the extent necessary
        to
        avoid adverse consequences under section 409A of the Code. 

       

      Section
        17.  Cooperation.
        

       

      (a)   Employee
        recognizes that the Company or its Affiliates may become involved in disputes
        with third parties, or with present or former employees, or become subject
        to
        regulatory investigations, or obligated by law to conduct internal
        investigations, concerning matters relating to Employee's employment or his
        areas of responsibility. In such situations following Employee's termination,
        the Company may determine that it needs Employee's assistance. Upon the
        Company's request to Employee with reasonable advance notice, Employee will
        confer with the Company or its designees, or otherwise provide the information
        that Employee has, including the location and identity of potentially relevant
        documents and other potential sources of relevant information, and shall,
        if
        necessary, meet in person with senior management or their representatives.
        The
        Company shall pay Employee in advance for Employee's costs and compensate
        him
        for the time devoted to such assistance above a de minimus amount at a mutually
        agreeable rate and shall, in any event, reimburse Employee all of his reasonable
        and necessary expenses associated with such cooperation.

       

    

    (b)  Should
      Employee be required by subpoena or other legal process or law ("Legal Demand")
      to provide information relating to his employment in any forum or to any
      governmental agency then, in advance of Employee's formal or informal (if any)
      response, Employee shall, within four (4) days of his receipt of the Legal
      Demand, provide written notice to the Company, to the attention of its General
      Counsel or chief legal officer.

    

    Section
      18.  Successors
      and Assigns; No Third-Party Beneficiaries.
      

     

    (a)  The
      Company. 
      This Agreement shall inure to the benefit of and be enforceable by, and may
      be
      assigned by the Company to, any purchaser of all or substantially all of the
      Company’s business or assets or any successor to the Company (whether direct or
      indirect, by purchase, merger, consolidation or otherwise). The Company will
      require in a writing delivered to Employee any such purchaser, successor or
      assignee to expressly assume and agree to perform this Agreement in the same
      manner and to the same extent that the Company would be required to perform
      it
      if no such purchase, succession or assignment had taken place. The Company
      may
      make no other assignment of this Agreement or its obligations hereunder.

     

    (b)  Employee. 
      Employee’s rights and obligations under this Agreement shall not be transferable
      by Employee by assignment or otherwise, without the prior written consent of
      the
      Company; provided,
      however,
      that if
      Employee shall die, all amounts then payable to Employee hereunder shall be
      paid
      in accordance with the terms of this Agreement to Employee’s devisee, legatee or
      other designee or, if there be no such designee, to Employee’s
      estate.

     

    (c)  No
      Third-Party Beneficiaries. 
      Except as otherwise set forth in Section
      8(b)
      or
      Section 18(b)hereof, nothing expressed or referred to in this Agreement will
      be
      construed to give any Person other than the Company and Employee any legal
      or
      equitable right, remedy or claim under or with respect to this Agreement or
      any
      provision of this Agreement.

     

    
      
        
        

      

      
        -13-

        
          

        

      

      
        Exhibit
          10.2-Edelstein Employment Agreement

      

    

     

    Section
      19.  Waiver
      and Amendments.
      

     

    Any
      waiver, alteration, amendment or modification of any of the terms of this
      Agreement shall be valid only if made in writing and signed by each of the
      parties hereto; provided,
      however,
      that
      any such waiver, alteration, amendment or modification is consented to on the
      Company’s behalf by the Board. No waiver by either of the parties hereto of
      their rights hereunder shall be deemed to constitute a waiver with respect
      to
      any subsequent occurrences or transactions hereunder unless such waiver
      specifically states that it is to be construed as a continuing
      waiver.

     

    Section
      20.  Severability.
      

     

    If
      any
      covenants or other provisions of this Agreement are found to be invalid or
      unenforceable by a final determination of a court of competent jurisdiction:
      (a)
      the remaining terms and provisions hereof shall be unimpaired, and (b) the
      invalid or unenforceable term or provision hereof shall be deemed replaced
      by a
      term or provision that is valid and enforceable and that comes closest to
      expressing the intention of the invalid or unenforceable term or provision
      hereof. 

     

    Section
      21.  Governing
      Law.

     

    THIS
      AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
      THE
      STATE OF DELAWARE (WITHOUT GIVING EFFECT TO THE CHOICE OF LAW PRINCIPLES
      THEREOF) APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH
      STATE. All
      actions and proceedings arising out of or relating to this Agreement shall
      be
      heard and determined in any New York state or federal court sitting in the
      city
      of New York, and the parties hereto hereby consent to the jurisdiction of such
      courts in any such action or proceeding.

     

    Section
      22.  Reimbursement
      of Legal Fees.

     

    The
      Company will reimburse Employee for all reasonable attorneys’ fees incurred by
      Employee in connection with the negotiation of the employment
      agreement.

     

    Section
      23.  Termination
      of Purchase Agreement

     

    In
      the
      event that the transactions contemplated under the Purchase Agreement terminate
      without closing, this Agreement shall automatically terminate on the date of
      such termination, and other than with respect to the Accrued Obligations,
      neither the Company nor Employee shall have any obligations to the other under
      this Agreement, and all payments and benefits shall cease as of such
      termination.

     

    Section
      24.  Notices.

     

    (a)  Every
      notice or other communication relating to this Agreement shall be in writing,
      and shall be mailed to or delivered to the party for whom it is intended at
      such
      address as may from time to time be designated by it in a notice mailed or
      delivered to the other party as herein provided, provided that, unless and
      until
      some other address be so designated, all notices

     

    
      
        
        

      

      
        -14-

        
          

        

      

      
        Exhibit
          10.2-Edelstein Employment Agreement

      

    

     

    or
      communications by Employee to the Company shall be mailed or delivered to the
      Company at its principal executive office, and all notices or communications
      by
      the Company to Employee may be given to Employee personally or may be mailed
      to
      Employee at Employee’s last known address, as reflected in the Company’s
      records.

     

    (b)  Any
      notice so addressed shall be deemed to be given: (i) if delivered by hand,
      on
      the date of such delivery; (ii) if mailed by courier or by overnight mail,
      on
      the first business day following the date of such mailing; and (iii) if mailed
      by registered or certified mail, on the third business day after the date of
      such mailing.

     

    Section
      25.  Section
      Headings.
      

     

    The
      headings of the sections and subsections of this Agreement are inserted for
      convenience only and shall not be deemed to constitute a part thereof, affect
      the meaning or interpretation of this Agreement or of any term or provision
      hereof.

     

    Section
      26.  Entire
      Agreement.
      

     

    This
      Agreement constitutes the entire understanding and agreement of the parties
      hereto regarding the employment of Employee. This Agreement supersedes all
      prior
      negotiations, discussions, correspondence, communications, understandings and
      agreements between the parties relating to the subject matter of this
      Agreement. 

     

    Section
      27.  Survival
      of Operative Sections. 

     

    Upon
      any
      termination of Employee’s employment, the provisions of Section
      8
      through
Section
      28
      of this
      Agreement (together with any related definitions set forth in Section
      1
      hereof)
      shall survive to the extent necessary to give effect to the provisions
      thereof.

     

    Section
      28.  Counterparts. 

     

    This
      Agreement may be executed in two or more counterparts, each of which shall
      be
      deemed to be an original but all of which together shall constitute one and
      the
      same instrument. The execution of this Agreement may be by actual or facsimile
      signature.

     

    * * *

     

    [Signatures
      to appear on the following page.]

     

    
      
        
        

      

      
        -15-

        
          

        

      

      
        Exhibit
          10.2-Edelstein Employment Agreement

      

    

     

    IN
      WITNESS WHEREOF, the undersigned have executed this Agreement as of the date
      first above written.

     

    

    
      	 	
              NYFIX,
                INC.

               

               

            
	 	/s/ Steven
              R. Vigliotti
	 	
              By:   
                Steven R. Vigliotti

              Title:
                Chief Financial Officer

            
	 	
               

               

            
	 	
              EMPLOYEE

               

            
	 	/s/ Howard
              Edelstein

    

     

    
      
        
        

      

      
        -16-

        
          

        

      

      
        
        

      

    

     

    Exhibit
      A

     

    Outside
      Activities

     

     

    SkillSoft
      PLC -- director and related strategic assistance.

     

    BT
      Radianz -- existing separation and transition commitments.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Exhibit
      B

     

    Form
      of Release

     

    Release
      of Claims

     

    1.   Howard
      Edelstein (“Employee”),
      for
      himself and his family, heirs, executors, administrators, legal representatives
      and their respective successors and assigns, as an express condition of, and
      in
      exchange for the consideration contained in, Section 8 of the Employment
      Agreement to which this release is attached as Exhibit
      A
      (the
“Employment
      Agreement”),
      which
      Employee acknowledges is in addition to any amounts to which he would have
      otherwise been entitled but for the Employment Agreement and execution of this
      Release of Claims, effective the date hereof, do fully and forever release,
      remise and discharge the Company, its direct and indirect parents, subsidiaries
      and affiliates, together with their respective officers, directors, partners,
      shareholders, employees and agents (collectively, and with the Company, the
      “Group”)
      from
      any and all claims which Employee had, may have had, or now have against the
      Group, for or by reason of any matter, cause or thing whatsoever, including
      any
      claim arising out of or attributable to Employee’s employment or the termination
      of Employee’s employment with the Company, including but not limited to claims
      of breach of contract, wrongful termination, unjust dismissal, defamation,
      libel
      or slander, or under any federal, state or local law dealing with discrimination
      based on age, race, sex, national origin, handicap, religion, disability or
      sexual preference. This release of claims includes, but is not limited to,
      all
      claims arising under the Age Discrimination in Employment Act (“ADEA”),
      Title
      VII of the Civil Rights Act, the Americans with Disabilities Act, the Civil
      Rights Act of 1991, the Family Medical Leave Act, the Equal Pay Act, the New
      York Human Rights Law, the New York City Administrative Code, each as may be
      amended from time to time, and all other federal, state and local labor and
      anti-discrimination laws, the common law and any other purported restriction
      on
      an employer’s right to terminate the employment of employees. As used in this
      Release of Claims, the term “claims” will include all claims, covenants,
      warranties, promises, undertakings, actions, suits, causes of action,
      obligations, debts, accounts, attorneys’ fees, judgments, losses and
      liabilities, of whatsoever kind or nature, in law, equity or otherwise. Employee
      specifically releases all claims relating to Employee’s employment and its
      termination under ADEA, a United States federal statute that, among other
      things, prohibits discrimination on the basis of age in employment and employee
      benefit plans. Notwithstanding any provision of this paragraph 1 to the
      contrary, by executing this Agreement, Employee is not releasing any claims
      relating to Employee’s rights to enforce the Company’s obligations under the
      Employment Agreement upon his termination.

     

    2.   Employee
      represents that Employee has not filed or permitted to be filed against the
      Group, individually or collectively, any complaints, charges or lawsuits arising
      out of Employee’s employment, or any other matter arising on or prior to the
      date hereof, and Employee covenants and agrees that Employee will never
      individually or with any other person file, or commence the filing of, any
      charges, lawsuits, complaints or proceedings with any governmental agency or
      otherwise against the Group with respect to the subject matter of this Release
      of Claims and claims released pursuant to this Release of Claims (including,
      without

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    limitation,
      any claims relating to the termination of Employee’s employment), except as may
      be necessary to seek a determination of the validity of the waiver of Employee’s
      rights under ADEA. In addition, Employee agrees that Employee will not
      voluntarily participate or assist in any judicial, administrative, arbitral
      or
      other proceedings of any nature or description against the Group brought by
      or
      on behalf of any administrative agencies or any current or former employees
      or
      service providers of the Group, other than pursuant to a valid judicial subpoena
      or court order.

     

    3.  Employee
      hereby acknowledges that the Company has informed him that he has up to
      twenty-one (21) days to sign this Release of Claims and he may knowingly and
      voluntarily waive that twenty-one (21) day period by signing this Release of
      Claims earlier. Employee also understands that he shall have seven (7) days
      following the date on which he signs this Release of Claims within which to
      revoke it by providing a written notice of his revocation to the
      Company.

     

    4.  Employee
      acknowledges that this Release of Claims will be governed by and construed
      and
      enforced in accordance with the internal laws of the State of Delaware
      applicable to contracts made and to be performed entirely within such State.
      

     

    5.   Employee
      acknowledges that he has read this Release of Claims, that he has been advised
      that he should consult with an attorney before he executes this general release
      of claims, and that he understands all of its terms and executes it voluntarily
      and with full knowledge of its significance and the consequences thereof.

     

    6.  This
      Release of Claims shall take effect on the eighth day following Employee’s
      execution of this Release of Claims unless Employee’s written revocation is
      delivered to the Company within seven (7) days after such
      execution.

    

     

            ______________________________

            Date:Separation and Release Agreement between Robert Gasser and NYFIX, Inc.

    Exhibit
      10.3

     

    
      Separation
        and Release Agreement

      

      This
        Separation and Release Agreement (the “Agreement”), dated as of September 4,
        2006, is intended to evidence a legally binding agreement between Mr. Robert
        Gasser (“Executive”) and NYFIX, Inc., a Delaware corporation (the “Company”),
        with respect to the matters set forth below.

      

      The
        parties, intending to be legally bound, hereby agree to the following
        terms:

      

      Resignation;
        Employment Pending Final Separation

      

      
        	 	
                ·

              	
                Executive
                  has resigned as Chief Executive Officer of the Company as of the
                  date
                  hereof.

              

      

       

      
        	 	
                ·

              	
                Executive
                  agrees to resign as a director of the Company and its affiliates
                  effective
                  as of 30 days from the date hereof (the “Resignation
                  Date”).

              

      

       

      
        	 	
                ·

              	
                To
                  assist the Company’s new management team during a transition period,
                  Executive agrees to continue as a full-time employee of the Company,
                  with
                  such duties as the new Chief Executive Officer may direct from
                  time to
                  time, until up to 30 days after the date hereof (the “Separation Date”).
                  

              

      

       

      
        	 	
                ·

              	
                As
                  of the Separation Date, all obligations of Executive and Company
                  under the
                  Executive Agreement dated September 2001 (the “Executive Agreement”) and
                  all other agreements between Executive and the Company or any of
                  its
                  affiliates will terminate, except as otherwise expressly provided
                  in this
                  Agreement

              

      

       

      Payments
        and Benefits (other than stock awards)

      

      
        	 	
                ·

              	
                The
                  Company agrees to continue to pay Executive’s current salary and premiums
                  for medical, prescription and dental coverage and to maintain current
                  Company-provided group life and disability insurance through the
                  Separation Date, and Executive shall be entitled to receive benefits
                  thereunder and any vested benefits under the Company’s employee benefit
                  plans.

              

      

       

      
        	 	
                ·

              	
                Within
                  30 days following the Separation Date, the Company agrees to reimburse
                  all
                  reasonable unreimbursed business expenses incurred prior to resignation
                  in
                  accordance with Company policy.

              

      

       

      
        	 	
                ·

              	
                The
                  parties agree that no severance payment will be
                  made.

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      Stock
        Awards

      

      
        	 	
                ·

              	
                Executive
                  currently has certain stock options some of which are vested and
                  some of
                  which are unvested. As promptly as practical after the date hereof
                  the
                  parties will mutually agree to prepare a schedule setting forth
                  such
                  options.

              

      

       

      
        	 	
                ·

              	
                The
                  unvested options will lapse without vesting on the Separation Date.
                  Consistent with Company practices, vested options will remain exercisable
                  for 90 days following the Separation Date.

              

      

       

      Indemnification

      

      
        	 	
                ·

              	
                The
                  Company agrees to continue to indemnify Executive and advance all
                  related
                  reasonable legal expenses in accordance with the terms of the Company’s
                  Certificate of Incorporation and its by-laws.

              

      

       

      
        	 	
                ·

              	
                The
                  Executive agrees to indemnify the Company and its affiliates for
                  any loss
                  or damage caused by Executive’s breach of this Agreement.
                  

              

      

       

      Standstill
        Covenants

      

      
        	 	
                ·

              	
                Executive
                  agrees that he will not, for a period of ten years following the
                  Resignation Date, without the prior written approval of the Company
                  expressed in a resolution adopted by the Board of
                  Directors:

              

      

       

      
        	 	
                ·

              	
                solicit
                  any proxies to vote any class of Company securities, become a
                  “participant” in any “election contest” relating to election of Company
                  directors, submit any proposal for inclusion in management’s proxy
                  statement or otherwise for vote of Company shareholders, or advise
                  or
                  influence any person with respect to voting of any Company
                  securities;

              

      

       

      
        	 	
                ·

              	
                act
                  together with any other person for the purpose acquiring, holding,
                  voting
                  or disposing of any Company securities, or any rights to acquire
                  Company
                  securities;

              

      

       

      
        	 	
                ·

              	
                act
                  alone or with any other person to acquire, or propose a business
                  combination with, the Company , or to control or influence the
                  management,
                  Board of Directors, or policies of the
                  Company;

              

      

       

      
        	 	
                ·

              	
                vote
                  any Company securities in opposition to any recommendation of the
                  Company’s Board of Directors; or

              

      

       

      
        	 	
                ·

              	
                acquire
                  any additional Company securities other than pursuant to exercise
                  of the
                  vested stock options described
                  above.

              

      

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      
        	 	
                ·

              	
                Executive
                  agrees to cause his immediate family members and affiliates to
                  comply with
                  the Standstill Covenants.

              

      

       

      Non-Interference
        Covenants

      

      
        	 	
                ·

              	
                Executive
                  agrees that he will not, for a period of two years following the
                  Resignation Date, directly or indirectly solicit for employment,
                  on
                  Executive’s own behalf or on behalf of any entity with which Executive is
                  affiliated, any person who was employed by the Company or any of
                  its
                  subsidiaries or affiliates at any time within 12 months prior to
                  the
                  Resignation Date. 

              

      

       

      
        	 	
                ·

              	
                To
                  the extent disclosed by Executive to the Company and/or any of
                  its
                  directors, officers and advisors, the Company and such persons
                  agree to
                  hold in strict confidence and maintain the confidentiality of Executive’s
                  plans regarding post-Separation Date
                  employment.

              

      

       

      
        	 	
                ·

              	
                The
                  parties agree that neither the Company nor the Executive shall
                  denigrate,
                  disparage, defame, impugn or otherwise damage or assail the reputation
                  or
                  integrity of the Executive on the one hand or the Company or any
                  of its
                  employees or directors, on the other.

              

      

       

      Confidentiality
        and Intellectual Property Covenants

      

      
        	 	
                ·

              	
                Executive
                  agrees that he will keep secret and not use for any purpose or
                  disclose to
                  any person any Confidential Information, except (i) with the written
                  consent or direction of the Company, or (ii) after reasonable advance
                  notice to the Company, as may otherwise be required by applicable
                  law or
                  government order. 

              

      

       

      
        	 	
                ·

              	
                “Confidential
                  Information” includes information about the Company's trade secrets,
                  proprietary information, products and methods, client lists, financial
                  affairs, books and records, commitments, procedures, plans and
                  prospects,
                  products and technologies in development, strategies, current or
                  prospective transactions or business of the Company, costs, profits,
                  markets, sales, products, key personnel, pricing policies, operational
                  methods, technical processes, business affairs and methods, and
                  other
                  information not readily available to the
                  public.

              

      

       

      
        	 	
                ·

              	
                Executive
                  agrees to assign to the Company, or at the direction of the Company
                  otherwise confirm the Company’s ownership in, all right, title and
                  interest, in or to, any Intellectual Property developed, created,
                  conceived of or reduced to practice by Executive, alone or with
                  others,
                  during the term of Executive’s employment with the Company, whether or not
                  during working hours, that are within the scope of the business
                  of the
                  Company. “Intellectual Property” shall include without limitation ideas,
                  discoveries, developments, concepts, inventions, trademarks, know-how,
                  processes, improvements to existing processes, products, formulas
                  and
                  techniques, and all other matters ordinarily intended by the words
                  “intellectual property,” whether or not patentable, copyrightable, or
                  otherwise able to be registered. 

              

      

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      
        	 	
                ·

              	
                Executive
                  covenants and agrees that on or prior to the Separation Date, he
                  will
                  return to the Company any and all memoranda, notes, plans, records,
                  reports, computer files, customer and advertising information,
                  trade
                  information, financial information, operating practices and procedures,
                  marketing plans and proposals, and any other documents and data
                  (including
                  copies thereof) relating to Confidential Information or Intellectual
                  Property of the Company, or to the work product or the business
                  of the
                  Company, in his possession, custody or control, in whatever format
                  (hard
                  copy or electronic), and wherever they may have been retained or
                  stored
                  (in his office, car, home, home office, or anywhere
                  else)

              

      

       

      Cooperation
        Covenants

      

      
        	 	
                ·

              	
                After
                  the Separation Date, Executive covenants and agrees to be reasonably
                  available to the Company for general consultation with the Company’s new
                  management team regarding the operation
                  of the Company’s business.

              

      

       

      
        	 	
                ·

              	
                Executive
                  covenants
                  and agrees to cooperate upon the reasonable, written request of,
                  and at
                  the reasonable expense of, the Company, subject to reasonable notice,
                  and
                  at reasonable times and places, by making himself available to
                  provide
                  information that may, in the exclusive discretion of the Company
                  or its
                  attorneys, assist or be relevant to any litigation (whether civil,
                  criminal, or an administrative proceeding) investigation, or other
                  dispute, including specifically, but not exclusively, (i) depositions,
                  meetings in advance of depositions, meetings in advance of trial
                  or
                  hearings, and trial or hearings, relating to or arising from the
                  business,
                  acts, or claimed omissions of the Company, and (ii) any other suits,
                  allegations, investigations or inquiries in connection with the
                  Company’s
                  stock option practices or related issues underlying the Company’s pending
                  financial restatement (the “Stock Option
                  Investigation”).

              

      

       

      
        	 	
                ·

              	
                Executive
                  covenants and agrees to notify the Company’s general counsel within three
                  (3) business days of any requests for information or testimony
                  that he
                  receives in connection with any litigation, investigation or inquiry
                  relating to the Company’s business, and the Company agrees to notify
                  Executive of any requests for information or testimony that it
                  receives
                  relating specifically to Executive.

              

      

       

      
        	 	
                ·

              	
                The
                  Company and Executive shall cooperate fully with the Department
                  of Justice
                  and the Securities and Exchange Commission and any other authority
                  with
                  jurisdiction over either the Company or Executive with respect
                  to the
                  Stock Option Investigation. 

              

      

       

      
        	 	
                ·

              	
                Executive
                  represents, warrants and covenants and agrees that he has cooperated,
                  and
                  will cooperate, fully with the Company and its counsel in connection
                  with
                  the Stock Option Investigation and that he has not withheld, and
                  will not
                  withhold, any non-privileged information or documents that were
                  requested
                  by counsel for the Company on any subject. Executive further represents
                  and warrants that he has not altered or destroyed any documents,
                  including
                  electronic documents or data, which relate to or pertain to the
                  Stock
                  Option Investigation.

              

      

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      

      Disputes
        and Remedies

      

      
        	 	
                ·

              	
                The
                  parties agree that any disputes arising under or relating to this
                  Agreement or Executive’s relationship with the Company shall be submitted
                  to binding arbitration in New York, New York, or such other venue
                  as the
                  parties may mutually determine, in front of a single arbitrator,
                  in
                  accordance with the rules of the American Arbitration
                  Association.

              

      

       

      
        	 	
                ·

              	
                The
                  parties agree that the Company shall be entitled to injunctive
                  relief to
                  enforce the provisions of this Agreement contained in the sections
                  hereof
                  entitled “Standstill Covenants”, “Non-Interference Covenants”,
                  “Confidentiality and Intellectual Property Covenants” and “Cooperation
                  Covenants”.

              

      

       

      Release

      

      
        	 	
                ·

              	
                Effective
                  as of the Resignation Date and again as of the Separation Date,
                  Executive,
                  individually and on behalf of his heirs, successors and assigns,
                  hereby
                  irrevocably releases, waives, and discharges the Company, and all
                  subsidiary, parent or affiliated companies and corporations, and
                  (A) their
                  present, former or future respective subsidiary, parent or affiliated
                  companies or corporations; (B) their respective funds and trusts;
                  (C) and
                  their respective present or former directors, officers, members,
                  shareholders, trustees, managers, supervisors, employees, partners,
                  attorneys, agents, representatives and insurers; and (D) the respective
                  predecessors, successors, heirs and assigns of any of the above
                  described
                  persons or entities (hereinafter referred to collectively as the
“Company
                  Released Parties”), from any and all claims, causes of action, losses,
                  damages, costs, and liabilities of every kind and character, whether
                  known
                  or unknown (“Claims”), that Executive may have or claim to have, in any
                  way relating to or arising out of, in whole or in part, Executive’s
                  association and/or employment with the Company, or the termination
                  of such
                  association or employment with the Company, provided such release
                  shall
                  not apply to Executive’s rights under this Agreement.
                  

              

      

       

      
        	 	
                ·

              	
                Executive
                  represents and warrants, as of the Resignation Date and again as
                  of the
                  Separation Date, that he has not assigned or transferred to any
                  person all
                  or any portion of any claim which is released, waived and discharged
                  above. 

              

      

       

      Tax
        Payments

       

      
        	 	
                ·

              	
                Executive
                  shall pay when due all required taxes arising from future exercises
                  of
                  stock options.

              

      

       

       

      This
        Agreement may be executed in multiple counterparts, each of which shall be
        deemed an original, but all of which together shall constitute one and the
        same
        instrument. 

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      This
        Agreement shall be governed by and construed in accordance with the laws
        of the
        State of New York applicable to contracts made and to be performed entirely
        within such State.

       

      [Signature
        Page to Follow]

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the parties hereto have executed this Agreement by their
        duly
        authorized officers as of the date first written above.

       

      
        	 	
                NYFIX,
                  INC.

                 

                 

              
	 	
                By:

              	/s/
                Steven R. Vigliotti
	 	 	
                Name:
                  Steven R. Vigliotti

                Title:  
                  Chief Financial Officer

              
	 	 	
                 

                 

              
	 	/s/
                Robert Gasser
	 	 ROBERT
                GASSER

      

    

     

    
      
        
        

      

      
        7

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