Document:

EX-10.2

Exhibit 10.2

February 6, 2006

Mr. Charles Caporale

Dear Cap:

We are pleased to confirm the principal terms of your employment as Chief Financial Officer of New
Horizons Worldwide, Inc. with a start date of February 6, 2006.

Your compensation and benefits package will consist of the following items:

	 	1.	 	$215,000 annual base salary

	 	2.	 	A 2006 bonus program that will be targeted to pay $100,000 on an annual basis for
achievement of a combination of audit completion and company EBIT.

	 	3.	 	50,000 New Horizons Worldwide, Inc. stock options. The options will be valued at
market value at your start date, vest fully in 12 months and be exercisable for six years.
These options will be governed by additional terms and conditions, which are outlined in
the enclosed separate form of Stock Option Agreement.

	 	4.	 	A benefits package covering medical, dental and vision insurance and 401(k) plan.

	 	a.	 	Except for the 401(k) Plan, which shall operate as described, the
other benefits shall become effective the first of the month following your start
date.

	 	b.	 	You will begin accruing vacation the first of the month following
your start date at a rate of two weeks per year.

	 	c.	 	New Horizons will pay 100% of the cost of your vision insurance
premium and 100% of the cost of your dependents’ premium.

	 	d.	 	New Horizons will pay the premium for the basic life insurance
coverage of $50,000.

	 	e.	 	New Horizons will pay the premium for the UNUM long-term disability
plan.

	 	5.	 	In the event that you are terminated without cause you will be entitled to severance
through February 6, 2007 or six months, whichever is greater based on the annual salary of
$215,000. In the event of such termination, the 50,000 stock options referenced in #3
above will immediately vest. Cause would be described as termination for performance
reasons or activities surrounding unethical misconduct.

Cap, I and the Board of Directors are excited to have you join us. You will make a huge difference
in our business and I am here to support your success in every way possible. If the foregoing
meets with your approval, please sign and return a copy of this letter at your first convenience.

	 	 	 	 	 
	Very truly yours

	 	AGREED AND ACCEPTED:
	 	

	 
	 	 	 	 
	/s/Thomas J. Bresnan	 	/s/Charles Caporale____________________

	 
	 	 	 	 
	 	 	 

	 
	 	 	 	 
	Thomas J. Bresnan

Chief Executive Officer

	 	Charles Caporale

	 	Date 2/6/06EX-10.1

EMPLOYMENT AGREEMENT

THIS AGREEMENT, is effective as of the 6th day of February 2006, by and between
CHICAGO MERCANTILE EXCHANGE Inc. (“Employer” or “CME”), a Delaware Corporation, having its
principal place of business at 20 South Wacker Drive, Chicago, Illinois, and John P. Davidson III
(“Employee”).

R E C I T A L S:

WHEREAS, Employer wishes to retain the services of Employee in the capacity of Managing
Director and Chief Corporate Development Officer upon the terms and conditions hereinafter set
forth and Employee wishes to accept such employment;

NOW, THEREFORE, in consideration of the mutual promises contained herein, the parties mutually
agree as follows:

	1)	 	Employment. Subject to the terms of the Agreement, Employer hereby agrees to employ
Employee during the Agreement Term as Managing Director and Chief Corporate Development
Officer and Employee hereby accepts such employment. Employee shall report to the Employer’s
Chief Executive Officer. Employee will work closely with the Office of the CEO and the
Management Team to focus on new business development and growth opportunities for CME.
Employee will be responsible for the Corporate Strategy, Corporate Development and Corporate
Project Office (CPO) functions. Additionally, Employee will also be responsible for building
a company-wide and enhanced research function that supports all firm activities. In general,
Employee will be responsible for building businesses within CME’s core competencies, outside
of CME’s core competencies and, defining future direction for the company via strategic
planning and research and development.

	2)	 	Agreement Term. Employee shall be employed hereunder for a term commencing on
February 3, 2006 (“Effective Date”), and expiring on February 3, 2009, unless sooner
terminated as herein provided (“Agreement Term”). The Agreement Term may be extended or
renewed only by the mutual written agreement of the parties.

	3)	 	Compensation.

	 	(a)	 	Annual Base Salary. Effective February 3, 2006,
Employer shall pay to Employee a base salary at a rate not less than
$575,000.00 per year (“Annual Base Salary”), payable in accordance with the
Employer’s normal payment schedule. Annual Base Salary may be increased from
year to year at the discretion of Employer.

	 	(b)	 	Bonuses. Employee shall be eligible to participate in
the Employer’s Annual Incentive Plan (the “AIP”) as in existence or as amended
from time to time in accordance with its terms as applicable to Employee. For
performance during calendar year 2006, Employee will receive a guaranteed
minimum bonus of $431,250.00, payable no later than March 2007, and provided
Employee remains on the Employer payroll as of the date the bonus is paid. As
a participant in the AIP, Employee will be eligible to receive this minimum or
a higher amount not to exceed the maximum level applicable to a Management Team
member, which currently is 150% of base earnings. For years after 2006,
Employee will continue to participate in the AIP in accordance with its terms
as applicable to Employee.

	 	(c)	 	Retention Payment. CME will pay Employee $900,000.00
(“Retention Payment”), payable in two installments as follows: $450,000.00,
less applicable withholding and other taxes, payable in the first pay period
following the first anniversary of the Effective Date of this Agreement (the
“First Installment”); and $450,000.00, less applicable withholding and other
taxes, payable during the first pay period following the second anniversary of
the Effective Date of this Agreement (the “Second Installment”). If Employee
voluntarily terminates his employment or if CME terminates Employee’s
employment for Cause (as hereinafter defined) at any time prior to Employee’s
one year anniversary, Employee will not be eligible to receive any of the First
Installment or Second Installment. If CME terminates Employee’s employment at
any time prior to Employee’s one year anniversary for any reason other than
Cause, Employee will be eligible to receive a pro rata portion of the First
Installment only, pro rated to the date of termination. If Employee
voluntarily terminates employment or if CME terminates Employee’s employment
for Cause at any time prior to Employees second anniversary, Employee will not
be eligible to receive any of the Second Installment. If CME terminates
Employee’s employment at any time prior to Employee’s second anniversary for
any reason other than Cause, Employee will be eligible to receive a pro rata
portion of the Second Installment pro rated to the date of termination.

	 	(d)	 	Equity Compensation. Employee shall be eligible to
participate in the Employer’s Equity Incentive Plan, as in existence or as
amended from time to time, in accordance with the terms of the Plan for
Managing Directors and members of the Management Team.

	 	(e)	 	Relocation Benefits. CME will provide Employee with
certain relocation expense reimbursement and other benefits, all as described
in the attached Exhibit A, “CME Relocation Assistance for John P. Davidson,”
which is incorporated herein by reference.

	4)	 	Benefits. Employee shall be entitled to insurance, vacation and other employee
benefits commensurate with his position in accordance with Employer’s policies for executives
in effect from time to time. Employee acknowledges receipt of a summary of Employer’s
employee benefits policies in effect as of the date of this Agreement.

	5)	 	Expense Reimbursement. During the Agreement Term, Employer shall reimburse Employee,
in accordance with Employer’s policies and procedures, for all proper expenses incurred by him
in the performance of his duties hereunder. Employee is also eligible to receive
reimbursement for relocation and out-of-state commuting expenses as described in the
Relocation Assistance Policy provided to him.

	6)	 	Termination.

	 	a)	 	Death. Upon the death of Employee, this Agreement shall automatically
terminate and all rights of Employee and his heirs, executors and administrators to
compensation and other benefits under this Agreement shall cease, except for compensation
which shall have accrued to the date of death, including accrued Base Salary, and other
employee benefits to which Employee is entitled upon his death, in accordance with the
terms of the plans and programs of CME.

	 	b)	 	Disability. Employer may, at its option, terminate this Agreement upon
written notice to Employee if Employee, because of physical or mental incapacity or
disability, fails to perform the essential functions of his position required of him
hereunder for a continuous period of 90 days or any 120 days within any 12-month period.
Upon such termination, all obligations of Employer hereunder shall cease, except for
payment of accrued Base Salary, and other employee benefits to which Employee is entitled
upon his termination hereunder, in accordance with the terms of the plans and programs of
CME. In the event of any dispute regarding the existence of Employee’s disability
hereunder, the matter shall be resolved as follows: (1) by the determination of a physician
selected by the Board; (2) Employee shall have the right to challenge that determination by
presenting a contrary determination from a physician of his choice; (3) in such event, a
physician selected by agreement of the Employee and the Board will make the final
determination. The Employee shall submit to appropriate medical examinations for purposes
of making the medical determinations hereunder.

	 	c)	 	Cause. Employer may, at its option, terminate Employee’s employment under this
Agreement for Cause. As used in this Agreement, the term “Cause” shall mean any one or
more of the following:

	 	(1)	 	any refusal by Employee to perform his duties and responsibilities
under this Agreement or violation of any rule, regulation or guideline imposed by a
regulatory or self regulatory body having jurisdiction over Employer, or violation
of any rule or policy of Employer, as determined after investigation by the Board.
Employee, after having been given written notice by Employer, shall have seven (7)
days to cure such refusal or violation;

	 	(2)	 	any intentional act of fraud, embezzlement, theft or misappropriation
of Employer’s funds by Employee, as determined after investigation by the Board, or
Employee’s admission or conviction of a felony or of any crime involving moral
turpitude, fraud, embezzlement, theft or misrepresentation;

	 	(3)	 	any gross negligence or willful misconduct of Employee resulting in a
financial loss or liability to the Employer or damage to the reputation of
Employer, as determined after investigation by the Board;

	 	(4)	 	any breach by Employee of any one or more of the covenants contained in
Section 7, 8 or 9 hereof.

The exercise of the right of CME to terminate this Agreement pursuant to this Section 6(c)
shall not abrogate any other rights or remedies of CME in respect of the breach giving rise
to such termination.

If Employer terminates Employee’s employment for Cause, he shall be entitled to accrued Base
Salary through the date of the termination of his employment, other accrued employee
benefits to which Employee is entitled upon his termination of employment with Employer, in
accordance with the terms of the plans and programs of CME. Upon termination for Cause,
Employee will forfeit any unvested or unearned compensation or long-term incentives, unless
otherwise provided herein or specified in the terms of the plans and programs of CME.

	 	d)	 	Termination Without Cause. Upon 30 days prior written notice to Employee,
Employer may terminate this Agreement for any reason other than a reason set forth in
sections (a), (b) or (c) of this Section 6. If, during the Agreement Term, Employer
terminates the employment of Employee hereunder for any reason other than a reason set
forth in subsections (a), (b) or (c) of this Section 6, Employee shall be entitled to
receive:

	 	(1)	 	accrued Base Salary through the date of the termination
of his employment, and other accrued employee benefits to which Employee is
entitled upon his termination of employment with Employer, in accordance
with the terms of the plans and programs of Employer, and as described in
Section 3(c) of this Agreement;

	 	(2)	 	a one time payment equal to the target percentage of
base earnings then in effect for Management Team members under the CME
Annual Incentive Plan, pro rated to the date of termination; and

	 	(3)	 	a one time lump sum severance payment equal to 2 times
his Annual Base Salary in effect on the date of Employee’s termination pro
rated through the remaining term of the Agreement, but in no event shall
such lump sum payment exceed 2 times his Annual Base Salary in effect on
the date of the Employee’s termination, and provided Employee executes a
general release in a form and of a substance satisfactory to CME.

	 	e)	 	Voluntary Termination. Upon 60 days prior written notice to CME (or such
shorter period as may be permitted by CME), Employee may voluntarily terminate his
employment with CME prior to the end of the Agreement Term for any reason. If Employee
voluntarily terminates his employment pursuant to this subsection (e), he shall be entitled
to receive accrued Base Salary through the date of the termination of his employment and
other accrued employee benefits to which Employee is entitled upon his termination of
employment with CME, in accordance with the terms of the plans and programs of CME.

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	7)	 	Confidential Information and Non-Compete.

a) Confidential Information. (i) Employee acknowledges that the successful
development of CME’s services and products, including CME’s trading programs and systems,
current and potential customer and business relationships, and business strategies and plans
requires substantial time and expense. Such efforts generate for CME valuable and
proprietary information (“Confidential Information”) which gives CME a business advantage
over others who do not have such information. Confidential information includes, but is not
limited to the following: trade secrets, technical, business, proprietary or financial
information of CME not generally known to the public, business plans, proposals, past and
current prospect and customer lists, trading methodologies, systems and programs, training
materials, research data bases and computer software; but shall not include information or
ideas acquired by Employee prior to his employment with CME if such pre-existing information
is generally known in the industry and is not proprietary to CME. Employee further
acknowledges that during Employee’s employment by CME, Employee’s duties will expose
Employee to Confidential Information, and Employee understands and acknowledges that each
and every component of the Confidential Information constitutes a protectible business
interest of CME.

(ii) Throughout Employee’s employment with the Company and at all times thereafter: (1)
Employee will hold all Confidential Information in the strictest confidence, take all
reasonable precautions to prevent its inadvertent disclosure to any unauthorized person, and
follow all CME policies protecting the Confidential Information; (2) Employee will not,
directly or indirectly, utilize, disclose, or make available to any other person or entity,
any of the Confidential Information, other than in the proper performance of Employee’s
duties during Employee’s employment with CME; and (3) if Employee learns that any person or
entity is taking or threatening to take any action which would compromise any Confidential
Information, Employee will promptly advise CME of all facts concerning such action or
threatened action.

(iii) If Employee receives any subpoena or becomes subject to any legal obligation that
might require Employee to disclose Confidential Information, Employee will provide prompt
written notice of that fact to CME, enclosing a copy of the subpoena and any other documents
describing the legal obligation. In the event that CME objects to the disclosure of
Confidential Information, by way of a motion to quash or otherwise, Employee agrees to not
disclose any Confidential Information while any such objection is pending.

(iv) At the request of CME (or, without any request, upon termination of Employee’s
employment with the Company for any reason), Employee will immediately deliver to CME (i)
all property of the Employer that is then in Employee’s possession, custody or control,
including, without limitation, all keys, access cards, credit cards, computer hardware
(including but not limited to any hard drives, diskettes, laptop computers and personal data
assistants and the contents thereof, as well as any passwords or codes needed to operate any
such hardware), computer software and programs, data, materials, papers, books, files,
documents, records, policies, client and customer information and lists, marketing
information, design information, specifications and plans, data base information and lists,
mailing lists, notes, and any other property or information that Employee has relating to
the Company (whether those materials are in paper or computer-stored form), and (ii) any and
all documents or other items containing, summarizing, or describing any Confidential
Information, including all originals and copies.

b) Non-Competition For a period of one (1) year following the termination of
Employee’s employment with CME for any reason, the Employee will not (i) be employed in an
executive or managerial capacity by, or (ii) provide, whether as an employee, independent
contractor, consultant, or otherwise, any services of an executive or managerial nature or
any services similar to those provided by the Employee to CME during Employee’s employment
with CME to, any exchange, stock depository or clearing organization. Employee acknowledges
that the restrictions contained in this Paragraph 2 are necessary to protect CME’s
legitimate interests in its Confidential Information and customer relationships.

c) General. Upon termination for any reason, Employee shall return to Employer all
records, memoranda, notes, plans, reports, computer tapes and equipment, software and other
documents or data which constitute Confidential Information which he may then possess or
have under his control (together with all copies thereof) and all credit cards, keys and
other materials and equipment which are Employer’s property that he has in his possession or
control. If, at any time of enforcement of this Section 7, a court holds that the
restrictions stated herein are unreasonable, the parties hereto agree that a maximum period,
scope or geographical area reasonable under the circumstances shall be substituted for the
stated period, scope or area and that the court shall be allowed to revise the restrictions
contained herein to cover the maximum period, scope and area permitted by law.

	8)	 	Non-solicitation.

	 	a)	 	General. Employee acknowledges that Employer invests in recruiting and
training, and shares Confidential Information with, its employees. As a result, Employee
acknowledges that Employer’s employees are of special, unique and extraordinary value to
Employer.

	 	b)	 	Non-solicitation. Employee agrees that during the term of this
Agreement and for a period of one (1) year following the termination of his employment with
CME for any reason, Employee shall not employ, retain, solicit, for employment or
retention, knowingly assist in the employment or retention of, or seek to influence or
induce to leave CME’s employment or service, any person who is employed or otherwise
engaged by CME at any time during the one-year period ending on Employee’s last day of
employment with CME. Employee acknowledges that Employer invests a substantial amount of
time and money in recruiting and training, and shares Confidential Information with, its
employees. Employee further acknowledges that the restrictions contained in this paragraph
are necessary to protect CME’s legitimate interests in its Confidential Information and
employee relationships.

	 	c)	 	Reformation. If, at any time of enforcement of this Section 8, a court holds
that the restrictions stated herein are unreasonable, the parties hereto agree that the
maximum period, scope or geographical area reasonable under the circumstances shall be
substituted for the stated period, scope or area and that the court shall be allowed to
revise the restrictions contained herein to cover the maximum period, scope and area
permitted by law.

	9)	 	Intellectual Property. During the Agreement Term, Employee shall disclose to CME
and treat as confidential information all ideas, methodologies, product and technology
applications that he develops during the course of his employment with CME that relates
directly or indirectly to CME’s business. Employee hereby assigns to CME his entire right,
title and interest in and to all discoveries and improvements, patentable or otherwise, trade
secrets and ideas, writings and copyrightable material, which may be conceived by Employee or
developed or acquired by him during his employment with CME, which may pertain directly or
indirectly to the business of the CME. Employee shall at any time during or after the
Agreement Term, upon CME’s request, execute, acknowledge and deliver to CME all instruments
and do all other acts which are necessary or desirable to enable CME to file and prosecute
applications for, and to acquire, maintain and enforce, all patents, trademarks and copyrights
in all countries with respect to intellectual property developed or which was being developed
during Employee’s employment with CME.

	10)	 	Remedies. Employee agrees that given the nature of CME’s business, the scope and
duration of the restrictions contained paragraphs 7, 8, 9 and 10 of this Agreement are
reasonable and necessary to protect the legitimate business interests of CME and do not unduly
interfere with Employee’s career or economic pursuits. Employee recognizes and agrees that
any breach or threatened or anticipated breach of any part of paragraphs 7, 8, and 9 of this
Agreement will result in irreparable harm and continuing damage to CME, and that the remedy at
law for any such breach or threatened or anticipated breach will be inadequate. Accordingly,
in addition to any other legal or equitable remedies that may be available to CME, Employee
agrees that CME shall be entitled to seek and obtain an injunction or injunctions, without
bond or other security, to prevent any breach or threatened or anticipated breach of any such
section. Employee agrees to reimburse CME for all costs and expenses, including reasonable
attorney’s fees and costs, incurred by CME in good faith in connection with the enforcement of
its rights under this Agreement.

	11)	 	Survival. Sections 7, 8, 9 and 10 of this Agreement shall survive and continue in
full force and effect in accordance with their respective terms, notwithstanding any
termination of the Agreement.

	12)	 	Arbitration. Except with respect to Sections 7, 8, and 9, any dispute or controversy
between CME and Employee, whether arising out of or relating to this Agreement, the breach of
this Agreement, or otherwise, shall be settled by arbitration in Chicago, Illinois, in
accordance with the following:

(a) Arbitration hearings will be conducted by the American Arbitration Association (AAA).
Except as modified herein, arbitration hearings will be conducted in accordance with AAA’s
rules.

(b) State and federal laws contain statutes of limitation which prescribe the time frames within
which parties must file a law suit to have their disputes resolved through the court system.
These same statutes of limitation will apply in determining the time frame during which the
parties must file a request for arbitration.

(c) If Employee seeks arbitration, Employee shall submit a filing fee to the AAA in an amount
equal to the lesser of the filing fee charged in the state or federal court in Chicago,
Illinois. The AAA will bill Employer for the balance of the filing and arbitrator’s fees.

(d) The arbitrator shall have the same authority to award (and shall be limited to awarding) any
remedy or relief that a court of competent jurisdiction could award, including compensatory
damages, attorney fees, punitive damages and reinstatement. Employer and Employee may be
represented by legal counsel or any other individual at their own expense during an arbitration
hearing.

(e) Judgment on the award rendered by the arbitrator may be entered in any court having
jurisdiction thereof.

(f) Except as necessary in court proceedings to enforce this arbitration provision or an award
rendered hereunder, or to obtain interim relief, neither a party nor an arbitrator may disclose
the existence, content or results of any arbitration hereunder without the prior written consent
of CME and Employee.

	13)	 	Notices. All notices and other communications required or permitted hereunder shall
be in writing and shall be deemed given when (i) delivered personally or by overnight courier
to the following address of the other party hereto (or such other address for such party as
shall be specified by notice given pursuant to this Section) or (ii) sent by facsimile to the
following facsimile number of the other party hereto (or such other facsimile number for such
party as shall be specified by notice given pursuant to this Section), with the confirmatory
copy delivered by overnight courier to the address of such party pursuant to this Section 14:

If to CME, to:

Craig S. Donohue

Chief Executive Officer

CME

20 South Wacker Drive

Chicago, IL 60606

(312) 930-3100 (tel)

(312) 930-3209 (fax)

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With a copy to:

Kathleen M. Cronin

Managing Director, General Counsel and Corporate Secretary

CME

20 South Wacker Drive

Chicago, IL 60606

(312) 930-3488 (tel)

(312) 930-3323 (fax)

If to Employee, to:

John P. Davidson

133 Brewster Road

Scarsdale, New York 10583

(914) 723-3911 (tel)

(914) 723-1265 (fax)

	14)	 	Severability. Whenever possible, each provision of this Agreement shall be
interpreted in such manner as to be effective and valid under applicable law, but if any
provision of this Agreement is held to be invalid, illegal or unenforceable in any respect
under applicable law or rule in any jurisdiction, such invalidity, illegality or
unenforceability shall not affect the validity, legality or enforceability of any other
provision of this Agreement or the validity, legality or enforceability of such provision in
any other jurisdiction, but this Agreement shall be reformed, construed and enforced in such
jurisdiction as if such invalid, illegal or unenforceable provision had never been contained
herein.

15) Entire Agreement. Except for CME policies and other programs, benefits, and exhibits
otherwise referenced herein, this Agreement constitutes the entire Agreement and understanding
between the parties with respect to the subject matter hereof and supersedes and preempts any prior
understandings, agreements or representations by or between the parties, written or oral, which may
have related in any manner to the subject matter hereof. No other agreement or amendment to this
Agreement shall be binding upon either party including, without limitation, any agreement or
amendment made hereafter unless in writing, signed by both parties.

	16)	 	Successors and Assigns. This Agreement shall be enforceable by Employee and his
heirs, executors, administrators and legal representatives, and by CME and its successors and
assigns.

	17)	 	Governing Law. This Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of Illinois without regard to principles of conflict of
laws.

	18)	 	Acknowledgment. Employee acknowledges that Employee has read, understood, and
accepts the provisions of this Agreement.

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

	 	 	 
	Chicago Mercantile Exchange Inc.

By: /s/ Craig S. Donohue

	 	John P. Davidson III

/s/ John P. Davidson III
	 

	 	 

Its: Chief Executive Officer

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Exhibit A

CME Relocation Assistance for John P. Davidson III

CME offers a competitive relocation assistance policy to ease the transition an employee may
encounter in relocating to the Chicago area. Accordingly, CME will reimburse you for certain
relocation expenses related to your move, as described below. To be reimbursed, all relocation
expenses must be incurred by 6/30/2008.

Reimbursable Expenses

Temporary Housing: If you must begin work before you have had an opportunity to find
permanent housing in the Chicago area, CME will reimburse you for the reasonable cost of
renting a 2 bedroom apartment (furnished or unfurnished), not to exceed $3000 per month for
a period of up to fourteen months. If you have not moved your own car to Chicago, we will
also reimburse you for the reasonable costs of renting a car during this period.

Moving of Household Goods: Up to a maximum of $13,000, CME will reimburse you for basic
moving services, including packing and unpacking of normal household goods, appliance
servicing, insurance coverage for full replacement value, and other related expenses,
including the temporary (less than six months) storage of your household items before or
after your move. (CME will not pay for the moving of airplanes, boats, recreational
vehicles, utility sheds, firewood, more than three vehicles or other items of excessive
bulk.)

Special Note About Insurance: Moving some personal valuables requires that you
identify, or declare them specifically, so that your relocation coordinator can get
special permission and make insurance arrangements. They include jewelry, furs,
money, animals, fine art, antiques, securities or collectibles. If you fail to
declare those items, insurance will not cover any expenses related to their loss.
Please ensure that you make all required declarations because the CME will not
reimburse you for any losses associated with your move. (This expense was not in the
original agreement.)

Moving Days: CME will authorize three paid moving days, in addition to any vacation or
personal days for which you might be eligible, to allow you to complete your physical move
and get settled in your new residence.

Miscellaneous Allowance: CME will provide an allowance of $5,000 for miscellaneous expenses
associated with setting up your new household. This includes items such as cable
installation or hook-up, driver’s license fees and license plates, vehicle stickers or
providing window or floor coverings in your new residence. This allowance is available to
you once you have closed on your new home. Please provide a copy of your closing documents
on your new home to obtain this allowance.

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Similarly, if you prefer to rent, the CME will provide an allowance of $2,500 for
miscellaneous expenses. This amount may be applied toward your security deposit or other
expenses associated with setting up your residence. Please provide a copy of your signed
lease to obtain this allowance.

Reimbursement Procedures

To be eligible for reimbursement of the above expenses, you must complete an expense report
and submit all documentation and original receipts to the Organizational Development
Division for processing.

Your Repayment Obligations 

If you voluntarily leave CME within one year after your move, you must reimburse CME for all
of the payments made as part of your relocation.

Return Trips Home

CME will reimburse you for reasonable airfare and miscellaneous expenses (coach class
airfare or mileage) for you. Please note that CME has a preferred travel agency that will
need to be used to arrange travel accommodations.

Tax Liability Assistance

The Internal Revenue Service requires that reimbursement for some relocation expenses be
included in your gross income. This includes expenses the company reimburses directly to
you for house hunting trips and return trips home, for example. It includes any
reimbursement, which the IRS views as non-deductible (i.e., taxable) expenses.

CME will make additional payments to the Internal Revenue Service and state taxing
authorities to compensate for taxes on non-deductible moving expenses. This is called the
tax liability assistance, also known as “gross up”. To be eligible, you must be employed
through the end of the calendar year in which you incurred the relocation expenses.

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