Document:

ex10-1.htm

Exhibit 10.1

 

ROCKDALE SETTLEMENT AGREEMENT

This Settlement Agreement ("Agreement") is entered into by and between Spectrum Net Profits, LLC, Spectrum Resources Corp., Spectrum Resources/Kingman Energy JV I, Spectrum Resources/Kingman Energy JV II and Spectrum Resources/Kingman Energy JV III, John Barton, and Rockdale Resources Corporation (individually, "Party" and collectively, "Parties").

 

I.  Definitions

 

As used in this document, the following terms have the following meanings:

 

1. "Spectrum Net" means Spectrum Net Profits, LLC and all of its predecessors, successors, affiliates, subsidiaries, assigns, members, servants, officers, directors, employees, attorneys, consultants, contractors, subcontractors, independent contractors, sureties, indemnitors, insurers, or agents, past, present, and future.

 

2. "Spectrum Resources"  means Spectrum Resources Corp. and all of its predecessors, successors, affiliates, subsidiaries, assigns, shareholders, servants, officers, directors, employees, attorneys, consultants, contractors, subcontractors, independent contractors, sureties, indemnitors, insurers, or agents, past, present, and future.

 

3. "Spectrum I" means Spectrum Resources/Kingman Energy JV-1 and all of its predecessors, successors, affiliates, subsidiaries, assigns, partners, servants, officers, directors, employees, attorneys, consultants, contractors, subcontractors, independent contractors, sureties, indemnitors, insurers, or agents, past, present, and future.

 

4. "Spectrum II" means Spectrum Resources/Kingman Energy JV-2 and all of its predecessors, successors, affiliates, subsidiaries, assigns, partners, servants, officers, directors, employees, attorneys, consultants, contractors, subcontractors, independent contractors, sureties, indemnitors, insurers, or agents, past, present, and future.

 

5. "Spectrum III" Spectrum Resources/Kingman Energy JV-3 and all of its predecessors, successors, affiliates, subsidiaries, assigns, partners, servants, officers, directors, employees, attorneys, consultants, contractors, subcontractors, independent contractors, sureties, indemnitors, insurers, or agents, past, present, and future.

 

6. "Spectrum Entities" means Spectrum Net, Spectrum Resources, Spectrum I, Spectrum II, and/or Spectrum III.

 

7. "Barton" means John Barton, individually.

 

8. "Rockdale" means Rockdale Resources Corporation and all of its predecessors, successors, affiliates, subsidiaries, assigns, shareholders, servants, officers, directors, employees, attorneys, consultants, contractors, subcontractors, independent contractors, sureties, indemnitors, insurers, or agents, past, present, and future.

 

  

  

  

 

II.  Recitals

 

9. WHEREAS, Spectrum Net Profits, LLC is a Colorado limited liability company in the business of oil and gas exploration, drilling, and production ; AND

 

10. WHEREAS, Spectrum Resources Corp. is a Colorado corporation in the business of oil and gas exploration, drilling, and production; AND

 

11. WHEREAS, Barton is the President and Director of Spectrum Resources and Spectrum Net; AND

 

12. WHEREAS, Spectrum I, Spectrum II, and Spectrum III are Texas joint ventures in the business of oil and gas exploration, drilling, and production; AND

 

13. WHEREAS, Rockdale Resources Corporation is a Texas corporation in the business of oil and gas exploration, drilling, and production, with Marc Spezialy as its Chief Executive Officer; AND

 

14. WHEREAS, Barton was formerly a member of the board of directors for Rockdale; AND

 

15. WHEREAS the parties to this Agreement all have a vested interest in avoiding litigation amongst themselves relating to issues pertaining to, among others things, Spectrum III and previous obligations under the March 8, 2013 and March 29, 2013 Agreement; AND

 

16. WHEREAS the parties to this Agreement warrant that they have complete and full authority to execute this Agreement; AND

 

17. WHEREAS contemporaneously with this Agreement the Spectrum Entities and Energy Capital Partners, LLC, a Texas limited liability company, John Barton, RTO Operating, LLC, Brian Midtbo, Texas Private Oil Partners, L.P., Rick Wilber and Marc Spezialy entered into a Confidential Settlement Agreement ("CSA");

 

18. WHEREAS the execution of this Agreement is not to be construed as an admission of fault and liability and, in particular, the Parties recognize that this Agreement is being entered into for settlement and compromise.

 

III.  Terms

 

19. In consideration of the promises and agreements contained herein, and other good and valuable consideration including the avoidance of litigation amongst some or all of the Parties, the Parties agree as follows:

 

20. By their execution of this Agreement, the Parties represent and warrant that the following statements, inasmuch as each pertains to each Party, are true and accurate, as of the Effective Date.

 

21. The  Parties to this Agreement agree to use their best efforts to facilitate the performance of the CSA and agree not to take any action that would frustrate the purpose of the CSA.

 

  

  

  

 

22. The Spectrum Entities and Barton agree to indemnify Rockdale and their officers, directors, agents, employees and all those in active concert with them for any liability to a third party assessed to them as a result of any malfeasance on the part of the Spectrum Entities and Barton.

 

23. Rockdale agrees to indemnify the Spectrum Entities and Barton and their officers, directors, agents, employees and all those in active concert with them for any liability to a third party assessed to them as a result of any malfeasance on the part of Rockdale.

 

24. Except for the obligations contained herein, the Spectrum Entities and Barton hereby release and forever discharge Rockdale and their officers, directors, agents, employees and all those in active concert with them.  Additionally, except for the obligations contained herein, Rockdale hereby releases and forever discharge the Spectrum Entities and Barton and their officers, directors, agents, employees and all those in active concert with them.  This release is applicable to any and all past, present or future claims, demands, obligations, actions, causes of actions, rights, damages, costs, losses of services, expenses and compensation of any nature whatsoever, whether based on a tort, contract or other theory of recovery, which the Spectrum Entities and Barton, on the one hand, and Rockdale on the other, now have against each other, whether now known or hereafter discovered, from the beginning of time to the date of this Settlement Agreement.  This mutual release and discharge shall also apply to the past, present and future insurers, officers, directors, stockholders, attorneys, agents, servants, representatives, employees, subsidiaries, affiliates, partners, predecessors, managers, members, successors in interest, and assigns, and all other persons, firms or corporations with whom the Parties have been, are now or may hereafter affiliated.

 

25. Any controversy or claim arising out of or relating to this Agreement, the March 8 Agreement and/or the March 29 Agreement, or the breach thereof, shall be settled by arbitration administered by the American Arbitration Association in accordance with its Commercial Arbitration Rules  and judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. Claims shall be heard by a single arbitrator. The place of arbitration shall be Austin, Texas. The prevailing party shall be entitled to an award of reasonable attorney fees and costs. The Commercial Arbitration Optional Rules for Emergency Measures of Protection are also incorporated by the parties. The award of the arbitrator shall be accompanied by a reasoned opinion.

 

26. This Agreement may be executed in facsimile or electronic counterparts, each of which shall be deemed an original and which collectively shall constitute one document.

 

AGREED TO EFFECTIVE this 3rd day of June 2013.

 

 

  

  

  

 

	
SPECTRUM NET PROFITS, LLC

By: /s/ John Barton                                                       

Printed Name: John Barton                                           

Title: Manager                                                               

	
SPECTRUM RESOURCES CORP.

By: /s/ John Barton                                                                           

Printed Name: John Barton                                     

Title: Manager                                                          

	  	  
	  	  
	  	  
	  	
ROCKDALE RESOURCES CORPORATION

By: /s/ Marc Spezialy                                               

Printed Name:  Marc Spezialy                                 

Title: Chief Executive Officer                                    

	  	  
	  	  
	  	  
	  	  

 

SPECTRUM RESOURCES/KINGMAN ENERGY JV I

By: /s/ John Barton                                                      

Printed Name:   John Barton                                       

Title:   Manager                                                            

SPECTRUM RESOURCES/KINGMAN ENERGY JV II

By: /s/ John Barton                                                       

Printed Name:   John Barton                                        

Title:   Manager                                                              

SPECTRUM RESOURCES/KINGMAN ENERGY JV III

By: /s/ John Barton                                                        

Printed Name:   John Barton                                        

Title:   ManagerEX-10.1

 Exhibit 10.1 
 BGC PARTNERS, INC. 
 FOURTH AMENDED AND RESTATED LONG TERM INCENTIVE PLAN

 (June 4, 2013) 
 1. Purpose. The purpose of this Fourth Amended and Restated Long Term Incentive Plan (the “Plan”) of BGC Partners, Inc., a Delaware corporation (the “Company”), is to advance
the interests of the Company and its stockholders by providing a means to attract, retain, motivate and reward directors, officers, employees and consultants of and service providers to the Company and its affiliates and to enable such persons to
acquire or increase a proprietary interest in the Company, thereby promoting a closer identity of interests between such persons and the Company’s stockholders. 
 The Plan was initially adopted by the Company in 1999 as the eSpeed, Inc. 1999 Long Term Incentive Plan, and was subsequently amended and restated in 2003. The eSpeed, Inc. 1999 Long Term Incentive Plan
was further amended and restated and, effective as of the closing of the merger between eSpeed, Inc. and BGC Partners, Inc. (the “Effective Date”), was renamed the “BGC Partners, Inc. Amended and Restated Long Term Incentive
Plan.” The Plan was further amended and restated effective on December 14, 2009 upon approval by the Company’s stockholders and renamed as of such date as the “BGC Partners, Inc. Second Amended and Restated Long Term Incentive
Plan.” The Plan was further amended and restated effective on December 14, 2011 upon approval by the Company’s stockholders and renamed as of such date as the “BGC Partners, Inc. Third Amended and Restated Long Term Incentive
Plan.” The Plan was further amended and restated effective on June 4, 2013 upon approval by the Company’s stockholders and renamed as of such date as the “BGC Partners, Inc. Fourth Amended and Restated Long Term Incentive
Plan.” 
 2. Definitions. The definitions of awards under the Plan, including Options, SARs (including Limited
SARs), Restricted Stock, Deferred Stock, Stock granted as a bonus or in lieu of other awards, Dividend Equivalents and Other Stock-Based Awards, are as set forth in Section 6 of the Plan. Such awards, together with any other right or interest
granted to a Participant under the Plan, are termed “Awards.” For purposes of the Plan, the following additional terms shall be defined as set forth below: 

(a) “Award Agreement” means any written agreement, contract, notice or other instrument or document evidencing
an Award. 
 (b) “Beneficiaries” means the person, persons, trust or trusts which have been designated
by a Participant in his or her most recent written beneficiary designation filed with the Committee to receive the benefits specified under the Plan upon such Participant’s death or, if there is no designated Beneficiary or surviving designated
Beneficiary, then the person, persons, trust or trusts entitled by will or the laws of descent and distribution to receive such benefits. 
 (c) “Board” means the Board of Directors of the Company. 

(d) A “Change in Control” shall be deemed to have occurred on: 

(i) the date of the acquisition by any “person” (within the meaning of Section 13(d)(3) or 14(d)(2) of the
Exchange Act), excluding the Company, its Parent or any Subsidiary or any employee benefit plan sponsored by any of the foregoing, of beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act) of shares of common stock of the
Company representing 30% of either (x) the total number of the then-outstanding shares of common stock, or (y) the total voting power with respect to the election of directors; or 

(ii) the date the individuals who constitute the Board upon the Effective Date (the “Incumbent Board”) cease for
any reason to constitute at least a majority of the members of the Board; provided, however, that any individual becoming a director subsequent to the Effective Date whose election, or nomination for election by the Company’s stockholders, was
approved by a vote of at least a majority of the directors then comprising the Incumbent Board (other than any individual whose nomination for election to Board membership was not endorsed by the Company’s management prior to, or at the time
of, such individual’s initial nomination for election) shall be, for purposes of this clause (ii), considered as though such person were a member of the Incumbent Board; or 

(iii) the consummation of a merger, consolidation, recapitalization, reorganization, sale or other disposition of all or
substantially all of the Company’s assets, a reverse stock split of outstanding voting securities, or the issuance of shares of stock of the Company in connection with the acquisition of the stock or assets of another entity; provided, however,
that a Change in Control shall not occur under this clause (iii) if consummation of the transaction would result in at least 70% of the total voting power represented by the voting securities of the Company (or, if not the Company, the entity
that succeeds to all or substantially all of the Company’s business) outstanding immediately after such transaction being beneficially owned (within the meaning of Rule 13d-3 promulgated pursuant to the Exchange Act) by at least 75% of the
holders of outstanding voting securities of the Company immediately prior to the transaction, with the voting power of each such continuing holder relative to other such continuing holders not substantially altered in the transaction. 

(e) “Code” means the Internal Revenue Code of 1986, as amended from time to time. References to any provision of
the Code shall be deemed to include regulations thereunder and successor provisions and regulations thereto. 

(f) “Committee” means the committee appointed by the Board to administer the Plan, or if no committee is
appointed, the Board. 

 (g) “Exchange Act” means the Securities Exchange Act of 1934, as
amended from time to time. References to any provision of the Exchange Act shall be deemed to include rules thereunder and successor provisions and rules thereto. 

(h) “Fair Market Value” means, with respect to Stock, Awards, or other property, the fair market value of such
Stock, Awards, or other property determined by such methods or procedures as shall be established from time to time by the Committee; provided, however, that, if the Stock is listed on a national securities exchange, the Fair Market Value of such
Stock on a given date shall be based upon the closing market price or, if unavailable, the average of the closing bid and asked prices per share of the Stock at the end of regular trading on such date (or, if there was no trading or quotation in the
Stock on such date, on the next preceding date on which there was trading or quotation) as provided by one of such organizations. 
 (i) “ISO” means any Option intended to be and designated as an incentive stock option within the meaning of Section 422 of the Code. 

(j) “Parent” means any “person” (within the meaning of Section 13(d)(3) or 14(d)(2) of the
Exchange Act) that controls the Company on the Effective Date, either directly or indirectly through one or more intermediaries. 
 (k) “Participant” means a person who, at a time when eligible under Section 5 hereof, has been granted an Award under the Plan. 

(l) “Rule 16b-3” means Rule 16b-3, as from time to time in effect and applicable to the Plan and Participants,
promulgated by the Securities and Exchange Commission under Section 16 of the Exchange Act, and shall be deemed to include any successor provisions thereto. 

(m) “Stock” means the Company’s Class A Common Stock, and such other securities as may be substituted
for Stock pursuant to Section 4(c). 
 (n) “Subsidiary” means each entity that is controlled by
the Company or a Parent, either directly or indirectly through one or more intermediaries. 
 3. Administration.

 (a) Authority of the Committee. Except as otherwise provided below, the Plan shall be administered by
the Committee. The Committee shall have full and final authority to take the following actions, in each case subject to and consistent with the provisions of the Plan: 

(i) to select persons to whom Awards may be granted; 

(ii) to determine the type or types of Awards to be granted to each such person; 

(iii) to determine the number of Awards to be granted, the number of shares of Stock to which an Award will relate, the
terms and conditions of any Award granted under the Plan (including, without limitation, any exercise price, grant price or purchase price, any restriction or condition, any schedule for lapse of restrictions or conditions relating to
transferability or forfeiture, exercisability or settlement of an Award, and waivers or accelerations thereof, performance conditions relating to an Award (including, without limitation, performance conditions relating to Awards not intended to be
governed by Section 7(e) and waivers and modifications thereof), based in each case on such considerations as the Committee shall determine), and all other matters to be determined in connection with an Award; 

(iv) to determine whether, to what extent and under what circumstances an Award may be settled, or the exercise price of
an Award may be paid, in cash, Stock, other Awards, or other property, or an Award may be canceled, forfeited, or surrendered; 
 (v) to determine whether, to what extent and under what circumstances cash, Stock, other Awards or other property payable with respect to an Award will be deferred either automatically or at the election
of the Committee or at the election of the Participant; 
 (vi) to determine the restrictions, if any, to which
Stock received upon exercise or settlement of an Award shall be subject (including, without limitation, lock-ups and other transfer restrictions), including, without limitation, conditioning the delivery of such Stock upon the execution by the
Participant of any agreement providing for such restrictions; 
 (vii) to prescribe the form of each Award
Agreement, which need not be identical for each Participant; 
 (viii) to adopt, amend, suspend, waive and
rescind such rules and regulations and appoint such agents as the Committee may deem necessary or advisable to administer the Plan; 
 (ix) to correct any defect or supply any omission or reconcile any inconsistency in the Plan and to construe and interpret the Plan and any Award, rules and regulations, Award Agreement or other
instrument hereunder; and 
 (x) to make all other decisions and determinations as may be required under the
terms of the Plan or as the Committee may deem necessary or advisable for the administration of the Plan. 
 Other provisions of
the Plan notwithstanding, the Board shall perform the functions of the Committee for purposes of granting awards to directors who serve on the Committee, and, to the extent permitted under applicable law and regulation, the Board

 
may perform any function of the Committee under the Plan for any other purpose, including without limitation for the purpose of ensuring that transactions under the Plan by Participants who are
then subject to Section 16 of the Exchange Act in respect of the Company are exempt under Rule 16b-3. In any case in which the Board is performing a function of the Committee under the Plan, each reference to the Committee herein shall be
deemed to refer to the Board, except where the context otherwise requires. 
 (b) Manner of Exercise of
Committee Authority. Any action of the Committee with respect to the Plan shall be taken in its sole discretion and shall be final, conclusive and binding on all persons, including the Company, its Parent and Subsidiaries, Participants, any
person claiming any rights under the Plan from or through any Participant and stockholders, except to the extent the Committee may subsequently modify, or take further action not consistent with, its prior action. If not specified in the Plan, the
time at which the Committee must or may make any determination shall be determined by the Committee, and any such determination may thereafter be modified by the Committee (subject to Section 8(e)). The express grant of any specific power to
the Committee, and the taking of any action by the Committee, shall not be construed as limiting any power or authority of the Committee. Except as provided under Section 7(e), the Committee may delegate to officers or managers of the Company
the authority, subject to such terms as the Committee shall determine, to perform such functions as the Committee may determine, to the extent permitted under applicable law and regulation. 

(c) Limitation of Liability; Indemnification. Each member of the Committee and any officer or employee of the
Company acting on behalf of the Committee shall be entitled to, in good faith, rely or act upon any report or other information furnished to him or her by any officer or other employee of the Company, its Parent or Subsidiaries, the Company’s
independent registered public accounting firm or any executive compensation consultant, legal counsel or other professional retained by the Company or the Committee to assist in the administration of the Plan. No member of the Committee, or any
officer or employee of the Company acting on behalf of the Committee, shall be personally liable for any action, determination or interpretation taken or made in good faith with respect to the Plan, and all members of the Committee and any officer
or employee of the Company acting on its behalf shall, to the extent permitted by law, be fully indemnified and protected by the Company with respect to any such action, determination or interpretation. 

4. Stock Subject to Plan. 
 (a) Amount of Stock Reserved. The aggregate number of shares of Stock delivered pursuant to the exercise or settlement of Awards granted under the Plan shall not exceed 200 million shares,
subject to adjustment as provided in Section 4(c), all of which may be shares of Stock subject to ISOs. If an Award valued by reference to Stock is settled in cash, the number of shares to which such Award relates shall be deemed to have been
delivered for purposes of this Section 4(a). Any shares of Stock delivered pursuant to an Award may consist, in whole or in part, of authorized and unissued shares, treasury shares or shares acquired in the market on a Participant’s
behalf. 
 (b) Annual Per-Participant Limitations. During any calendar year, no Participant may be granted
Awards, including Options and SARS, that may be settled by delivery of more than 15 million shares of Stock, subject to adjustment as provided in Section 4(c). In addition, with respect to Awards that may be settled solely in cash, no
Participant may be paid during any calendar year cash amounts relating to such Awards that exceed the greater of the Fair Market Value of the number of shares of Stock set forth in the preceding sentence at the date of grant or the date of
settlement of Award. This provision sets forth two separate limitations, so that Awards that may be settled solely by delivery of Stock will not operate to reduce the amount of cash-only Awards, and vice versa; nevertheless, Awards that may be
settled in Stock or cash must not exceed either limitation. 
 (c) Adjustments. In the event that the
Committee shall determine that any recapitalization, forward or reverse split, reorganization, merger, consolidation, spin-off, combination, repurchase or exchange of Stock or other securities, Stock dividend or other special, large and
non-recurring dividend or distribution (whether in the form of cash, securities or other property), liquidation, dissolution, or other similar corporate transaction or event, affects the Stock such that an adjustment is appropriate in order to
prevent dilution or enlargement of the rights of Participants under the Plan, then the Committee shall, in such manner as it may deem equitable, adjust any or all of (i) the number and kind of shares of Stock reserved and available for Awards
under Section 4(a), including shares reserved for ISOs, (ii) the number and kind of shares of Stock specified in the Annual Per-Participant Limitations under Section 4(b), (iii) the number and kind of shares of outstanding
Restricted Stock or other outstanding Awards in connection with which shares have been issued, (iv) the number and kind of shares that may be issued in respect of other outstanding Awards and (v) the exercise price, grant price or purchase
price relating to any Award (or, if deemed appropriate, the Committee may make provision for a cash payment, including, without limitation, payment based upon the Award’s intrinsic (i.e., in-the-money) value, if any, with respect to any
outstanding Award). In addition, the Committee shall make appropriate adjustments in the terms and conditions of, and the criteria included in, Awards (including, without limitation, cancellation of unexercised or outstanding Awards, with or without
the payment of any consideration therefor, substitution of Awards using stock of a successor or other entity) in recognition of unusual or non-recurring events (including, without limitation, events described in the preceding sentence and events
constituting a Change in Control) affecting the Company, its Parent or any Subsidiary or the financial statements of the Company, its Parent or any Subsidiary, or in response to changes in applicable law, regulation, or accounting principles.

 (d) Repricing. As to any Award granted as an Option or an SAR, the Committee may not, without prior
stockholder approval to the extent required under applicable law, regulation or exchange rule, subsequently reduce the exercise or grant price relating to such Award, or take such other action as may be considered a repricing of such Award under
generally accepted accounting principles. 

 5. Eligibility. Directors, officers and employees of the Company or its Parent or any
Subsidiary, and persons who provide consulting or other services to the Company, its Parent or any Subsidiary deemed by the Committee to be of substantial value to the Company or its Parent or Subsidiaries, are eligible to be granted Awards under
the Plan. In addition, persons who have been offered employment by, or agreed to become a director of, the Company, its Parent or any Subsidiary, and persons employed by an entity that the Committee reasonably expects to become a Subsidiary of the
Company, are eligible to be granted an Award under the Plan. 
 6. Specific Terms of Awards. 

(a) General. Awards may be granted on the terms and conditions set forth in this Section 6. In addition, the
Committee may impose on any Award or the exercise or settlement thereof such additional terms and conditions, not inconsistent with the provisions of the Plan, as the Committee shall determine, including, without limitation, terms and conditions
requiring forfeiture of Awards or of the cash, Stock, other Awards or other property received by the Participant in payment or settlement of Awards, in the event of termination of employment or service of the Participant, or in the case of the
Participant’s violation of Company policies, restrictions or other requirements. Except as expressly provided by the Committee (including for purposes of complying with the requirements of the Delaware General Corporation Law relating to lawful
consideration for the issuance of shares), no consideration other than services shall be required as consideration for the grant (but not the exercise or settlement) of any Award. 

(b) Options. The Committee is authorized to grant options to purchase Stock (including “reload” options
automatically granted to offset specified exercises of Options) on the following terms and conditions (“Options”): 
 (i) Exercise Price. The exercise price of one share of Stock purchasable under an Option shall be determined by the Committee; provided, however, that the price of one share of Stock which may be
purchased upon the exercise of an Option shall not be less than 100% of the Fair Market Value of one share of Stock on the date of grant of such Option. 
 (ii) Time and Method of Exercise. The Committee shall determine the time or times at which an Option may be exercised in whole or in part, the methods by which such exercise price may be paid or
deemed to be paid, the form of such payment, including, without limitation, cash, Stock, other Awards or other property (including notes or other contractual obligations of Participants to make payment on a deferred basis, such as through
“cashless exercise” arrangements, to the extent permitted under applicable law and regulation), and the methods by which Stock will be delivered or deemed to be delivered to Participants. 

(iii) Termination of Employment. The Committee shall determine the period, if any, during which Options shall be
exercisable following a Participant’s termination of his or her employment relationship with the Company, its Parent or any Subsidiary. Unless otherwise determined by the Committee, (A) during any period that an Option is exercisable
following termination of employment, it shall be exercisable only to the extent it was exercisable upon such termination of employment, and (B) if such termination of employment is for cause, as determined by the Committee unless the
Participant’s employment agreement otherwise defines cause (in which case, cause shall be determined in accordance with the employment agreement), all Options held by the Participant shall immediately terminate. 

(iv) Sale of the Company. Upon the consummation of any transaction whereby the Company (or any successor to the
Company or substantially all of its business) becomes a wholly-owned subsidiary of any corporation, all Options outstanding under the Plan shall terminate (after taking into account any accelerated vesting pursuant to Section 7(f)), with or
without the payment of any consideration therefor, including, without limitation, payment of the intrinsic (i.e., in-the-money) value, if any, of such Options, as determined by the Committee pursuant to Section 4(c), unless such other
corporation shall continue or assume the Plan as it relates to Options then outstanding (in which case, such other corporation shall be treated as the Company for all purposes hereunder, and, pursuant to Section 4(c), the Committee shall make
appropriate adjustment in the number and kind of shares of Stock subject thereto and the exercise price per share thereof to reflect consummation of such transaction). If the Plan is not to be so assumed, the Company shall notify the Participant of
consummation of such transaction at least ten days in advance thereof. 
 (v) Options Providing Favorable Tax
Treatment. The Committee may grant Options that may afford a Participant with favorable treatment under the tax laws applicable to such Participant, including, without limitation, ISOs. If Stock acquired by exercise of an ISO is sold or
otherwise disposed of within two years after the date of grant of the ISO or within one year after the transfer of such Stock to the Participant, the holder of the Stock immediately prior to the disposition shall promptly notify the Company in
writing of the date and terms of the disposition and shall provide such other information regarding the disposition as the Company may reasonably require in order to secure any deduction then available against the Company’s or any other
corporation’s taxable income. The Company may impose such procedures as it determines necessary or advisable to ensure that such notification is made. Each Option granted as an ISO shall be designated as such in the Award Agreement relating to
such Option. 

 (c) Stock Appreciation Rights. The Committee is authorized to grant
stock appreciation rights on the following terms and conditions (“SARs”): 
 (i) Right to
Payment. An SAR shall confer on the Participant to whom it is granted a right to receive, upon exercise thereof, the excess of (A) the Fair Market Value of one share of Stock on the date of exercise (or, if the Committee shall so determine
in the case of any such right other than one related to an ISO, the Fair Market Value of one share at any time during a specified period before or after the date of exercise), over (B) the grant price of the SAR as determined by the Committee
as of the date of grant of the SAR, which shall be not less than 100% of the Fair Market Value of one share of Stock on the date of grant. 
 (ii) Other Terms. The Committee shall determine the time or times at which an SAR may be exercised in whole or in part, the method of exercise, method of settlement, form of consideration payable
in settlement, method by which Stock will be delivered or deemed to be delivered to Participants, whether or not an SAR shall be in tandem with any other Award, and any other terms and conditions of any SAR. “Limited SARs” that may only be
exercised upon the occurrence of a Change in Control may be granted on such terms, not inconsistent with this Section 6(c), as the Committee may determine. Limited SARs may be either freestanding or in tandem with other Awards. 

(d) Restricted Stock. The Committee is authorized to grant Stock that is subject to restrictions based on continued
employment on the following terms and conditions (“Restricted Stock”): 
 (i) Grant and
Restrictions. Restricted Stock shall be subject to such restrictions on transferability and other restrictions, if any, as the Committee may impose, which restrictions may lapse separately or in combination at such times, under such
circumstances, in such installments, or otherwise, as the Committee may determine. Except to the extent restricted under the terms of the Plan and any Award Agreement relating to the Restricted Stock, a Participant granted Restricted Stock shall
have all of the rights of a stockholder, including, without limitation, the right to vote Restricted Stock or the right to receive dividends thereon. 
 (ii) Forfeiture. Except as otherwise determined by the Committee, upon termination of employment or service (as determined under criteria established by the Committee) during the applicable
restriction period, Restricted Stock that is at that time subject to restrictions shall be forfeited and reacquired by the Company; provided, however, that the Committee may provide, by rule or regulation or in any Award Agreement, or may determine
in any individual case, that restrictions or forfeiture conditions relating to Restricted Stock will be waived in whole or in part in the event of termination resulting from specified causes. 

(iii) Certificates for Stock. Restricted Stock granted under the Plan may be evidenced in such manner as the
Committee shall determine. If certificates representing Restricted Stock are registered in the name of the Participant, such certificates may bear an appropriate legend referring to the terms, conditions, and restrictions applicable to such
Restricted Stock, and the Company may retain physical possession of the certificate, in which case the Participant shall be required to have delivered a stock power to the Company, endorsed in blank, relating to the Restricted Stock. 

(iv) Dividends. Dividends paid on Restricted Stock shall be either paid at the dividend payment date in cash or in
shares of unrestricted Stock having a Fair Market Value equal to the amount of such dividends, or the payment of such dividends shall be deferred and/or the amount or value thereof automatically reinvested in additional Restricted Stock, other
Awards, or other investment vehicles, as the Committee shall determine or permit the Participant to elect. Stock distributed in connection with a Stock split or Stock dividend, and other property distributed as a dividend, shall be subject to
restrictions and a risk of forfeiture to the same extent as the Restricted Stock with respect to which such Stock or other property has been distributed, unless otherwise determined by the Committee. 

(e) Deferred Stock. The Committee is authorized to grant units representing the right to receive Stock at a future
date subject to the following terms and conditions (“Deferred Stock”): 
 (i) Award and
Restrictions. Delivery of Stock shall occur upon expiration of the deferral period specified for an Award of Deferred Stock by the Committee (or, if permitted by the Committee, as elected by the Participant). In addition, Deferred Stock shall be
subject to such restrictions as the Committee may impose, if any, which restrictions may lapse at the expiration of the deferral period or at earlier specified times, separately or in combination, in installments or otherwise, as the Committee may
determine. 
 (ii) Forfeiture. Except as otherwise determined by the Committee, upon termination of
employment or service (as determined under criteria established by the Committee) during the applicable deferral period or portion thereof to which forfeiture conditions apply (as provided in the Award Agreement evidencing the Deferred Stock), all
Deferred Stock that is at that time subject to such forfeiture conditions shall be forfeited; provided, however, that the Committee may provide, by rule or regulation or in any Award Agreement, or may determine in any individual case, that
restrictions or forfeiture conditions relating to Deferred Stock will be waived in whole or in part in the event of termination resulting from specified causes. 
 (f) Bonus Stock and Awards in Lieu of Cash Obligations. The Committee is authorized to grant Stock as a bonus, or to grant Stock or other Awards in lieu of Company obligations to pay cash under
other plans or compensatory arrangements. 

 (g) Dividend Equivalents. The Committee is authorized to grant awards
entitling the Participant to receive cash, Stock, other Awards or other property equal in value to dividends paid with respect to a specified number of shares of Stock (“Dividend Equivalents”). Dividend Equivalents may be awarded on a
free-standing basis or in connection with any other Award. The Committee may provide that Dividend Equivalents shall be paid or distributed when accrued or shall be deemed to have been reinvested in additional Stock, Awards or other investment
vehicles, and be subject to such restrictions on transferability and risks of forfeiture, as the Committee may specify. Dividend Equivalents may be paid, distributed or accrued in connection with any Award, whether or not vested. 

(h) Other Stock-Based Awards. The Committee is authorized, subject to limitations under applicable law and
regulation, to grant such other Awards that may be denominated or payable in, valued in whole or in part by reference to, or otherwise based on, or related to, Stock and factors that may influence the value of Stock, as deemed by the Committee to be
consistent with the purposes of the Plan, including, without limitation, convertible or exchangeable debt securities, other rights convertible or exchangeable into Stock, purchase rights for Stock, Awards with value and payment contingent upon
performance of the Company or any other factors designated by the Committee, and Awards valued by reference to the book value of Stock or the value of securities of or the performance of specified Subsidiaries (“Other Stock-Based Awards”).
An award granted under the BGC Holdings, L.P. Participation Plan that involves a limited partnership interest in BGC Holdings, L.P. that is exchangeable for or otherwise represents a right to acquire Stock in accordance with Section 4.5 of that
plan shall also constitute an Other Stock-Based Award within the meaning of this Section 6(h). In addition, Awards granted to provide shares of Stock issuable upon the exchange of exchangeable compensatory BGC Holdings, L.P. founding partner
interests shall constitute Other Stock-Based Awards within the meaning of this Section 6(h). The Committee shall determine the terms and conditions of Other Stock-Based Awards. Stock issued pursuant to such an Award in the nature of a purchase
right granted under this Section 6(h) shall be purchased for such consideration, paid for at such times, by such methods, and in such forms, including, without limitation, cash, Stock, other Awards, or other property, as the Committee shall
determine. Cash awards, as an element of or supplement to any other Award under the Plan, may be granted pursuant to this Section 6(h). 
 7. Certain Provisions Applicable to Awards. 
 (a)
Stand-Alone, Additional, Tandem, and Substitute Awards. Awards granted under the Plan may, as determined by the Committee, be granted either alone or in addition to, in tandem with or in substitution for any other Award granted under the Plan
or any award granted under any other plan of the Company, its Parent or Subsidiaries or any business entity to be acquired by the Company or a Subsidiary, or any other right of a Participant to receive payment from the Company, its Parent or
Subsidiaries. Awards granted in addition to or in tandem with other Awards, awards or rights may be granted either as of the same time as or a different time from the grant of such other Awards, awards or rights. 

(b) Term of Awards. The term of each Award shall be for such period as may be determined by the Committee;
provided, however, that in no event shall the term of any ISO or SAR granted in tandem therewith exceed a period of ten years from the date of its grant (or such shorter period as may be applicable under Section 422 of the Code). 

(c) Form of Payment Under Awards. Subject to the terms of the Plan and any applicable Award Agreement, payments to
be made by the Company, its Parent or Subsidiaries upon the grant, exercise or settlement of an Award may be made in such forms as the Committee shall determine, including, without limitation, cash, Stock, other Awards or other property, and may be
made in a single payment or transfer, in installments or on a deferred basis. Such payments may include, without limitation, provisions for the payment or crediting of reasonable interest on installment or deferred payments or the grant or crediting
of Dividend Equivalents in respect of installment or deferred payments denominated in Stock. 
 (d) Loans in
Connection with an Award. The Company may not, in connection with any Award, extend, maintain, renew, guarantee or arrange for credit in the form of a personal loan to any Participant who is a director or executive officer of the Company (within
the meaning of the Exchange Act); provided, however, that, with the consent of the Committee, and subject at all times to, and only to the extent, if any, permitted under, applicable law and regulation and other binding obligations or provisions
applicable to the Company, the Company may extend, maintain, renew, guarantee or arrange for credit in the form of a personal loan to a Participant who is not such a director or executive officer in connection with any Award, including the payment
by such Participant of any or all federal, state or local income or other taxes due in connection with any Award. Subject to such limitations, the Committee shall have full authority to decide whether to make a loan hereunder and to determine the
amount, terms and provisions of any such loan, including, without limitation, the interest rate to be charged in respect of any such loan, whether the loan is to be with or without recourse against the borrower, the terms on which the loan is to be
repaid and the conditions, if any, under which the loan may be forgiven. 

 (e) Performance-Based Awards. 

(i) Setting of Performance Objectives. The Committee may designate any Award, the grant, exercisability or
settlement of which is subject to the achievement of performance conditions, as a performance-based Award subject to this Section 7(e), in order to qualify such Award as “qualified performance-based compensation” within the meaning of
Section 162(m) of the Code. The performance objectives for an Award subject to this Section 7(e) shall consist of one or more business criteria and a targeted level or levels of performance with respect to such criteria, as specified by
the Committee but subject to this Section 7(e). Performance objectives shall be objective and shall otherwise meet the requirements of Section 162(m)(4)(C) of the Code. Business criteria used by the Committee in establishing performance
objectives for Awards subject to this Section 7(e) shall be based exclusively on one or more of the following corporate-wide or subsidiary, division or operating unit financial and strategic measures: 

(i) pre-tax or after-tax net income, 

(ii) pre-tax or after-tax operating income, 

(iii) gross revenue, 
 (iv) profit margin, 
 (v) stock price, 

(vi) cash flow(s), 
 (vii) market share, 
 (viii) pre-tax or after-tax earnings per
share, 
 (ix) pre-tax or after-tax operating earnings per share, 

(x) expenses, 
 (xi) return on equity, or 
 (xii) strategic business criteria,
consisting of one or more objectives based on meeting specified revenue, market penetration, or geographic business expansion goals, cost targets, or goals relating to acquisitions or dispositions. 

The levels of performance required with respect to such business criteria may be expressed on an absolute and/or relative
basis, may be based on or otherwise employ comparisons based on current internal targets, the past performance of the Company (including the performance of one or more subsidiaries, divisions and/or operating units) and/or the past or current
performance of other companies, and in the case of earnings-based measures, may use or employ comparisons relating to capital (including, without limitation, the cost of capital), stockholders’ equity and/or shares outstanding, or to assets or
net assets. Performance objectives may differ for such Awards to different Participants. The Committee shall specify the weighting to be given to each performance objective for purposes of determining the final amount payable with respect to any
such Award. The Committee may, in its discretion, reduce the amount of a payout otherwise to be made in connection with an Award subject to this Section 7(e), but may not exercise discretion to increase such amount, and the Committee may
consider other performance criteria in exercising such discretion. The Committee may not delegate any responsibility with respect to an Award subject to this Section 7(e). 

(ii) Impact of Extraordinary Items or Changes in Accounting. To the extent applicable, the measures used in setting
performance objectives for any given performance period shall be determined in accordance with generally accepted accounting principles (“GAAP”) in a manner consistent with the methods used in the Company’s audited financial
statements, without regard to (i) extraordinary items as determined by the Company’s independent registered public accounting firm in accordance with GAAP, (ii) changes in accounting, unless, in each case, the Committee decides
otherwise within the period described in Treas. Reg. Sec. 1.162-27(e)(2) (as may be amended from time to time) for a given performance period, or (iii) non-recurring acquisition expenses and restructuring charges. Notwithstanding the foregoing,
in calculating operating earnings or operating income (including on a per share basis), the Committee may, within the period described in Treas. Reg. Sec. 1.162-27(e)(2) (as may be amended from time to time) for a given performance period, provide
that such calculation shall be made on the same basis as reflected in a release of the Company’s earnings for a previously completed period as specified by the Committee. 

(f) Acceleration Upon a Change of Control. Notwithstanding anything contained herein to the contrary, except as set
forth in an Award Agreement, all conditions and/or restrictions relating to the continued performance of services and/or the achievement of performance objectives with respect to the exercisability or full enjoyment of an Award shall accelerate or
otherwise lapse immediately prior to a Change in Control. 
 8. General Provisions.  

(a) Issuance of Stock; Compliance with Laws and Obligations. The Company shall not be obligated to issue or deliver
Stock in connection with any Award or take any other action under the Plan in a transaction subject to the requirements of any applicable federal or state securities law, any requirement under any listing agreement between the Company and any
national securities exchange or any other law, regulation or contractual obligation of the Company until the Company is satisfied that such laws, requirements, regulations, and other obligations of the Company have been complied with in full.
Certificates representing shares of Stock issued under the Plan will be subject to such stop-transfer orders and other restrictions as may be applicable under such laws, requirements, regulations and other obligations of the Company, including any
requirement that a legend or legends be placed thereon. 
 (b) Limitations on Transferability. Awards and
other rights under the Plan shall not be transferable by a Participant except by will or the laws of descent and distribution or to a Beneficiary in the event of the Participant’s death, shall not be pledged, mortgaged, hypothecated or
otherwise encumbered, or otherwise subject to the claims of creditors, and, in the case of ISOs and SARs in tandem therewith, shall be exercisable during the lifetime of a Participant only by such Participant or his guardian or legal representative;
provided, however, that such Awards and other rights (other than ISOs and SARs in tandem therewith) may 

 
be transferred to one or more transferees during the lifetime of the Participant to the extent and on such terms and conditions as then may be permitted by the Committee. A Beneficiary,
transferee, or other person claiming any rights under the Plan from or through any Participant shall be subject to all of the terms and conditions of the Plan and any Award Agreement applicable to such Participant, except as otherwise determined by
the Committee, and to any additional terms and conditions determined by the Committee, whether imposed at or subsequent to the grant or transfer of the Award. 
 (c) No Right to Continued Employment or Service. Neither the Plan nor any action taken hereunder shall be construed as giving any employee, director or other person the right to be retained in the
employ or service of the Company, its Parent or any Subsidiary, nor shall it interfere in any way with the right of the Company, its Parent or any Subsidiary to terminate any employee’s employment or other person’s service at any time or
with the right of the Board or stockholders to remove any director. Unless otherwise specified in the applicable Award Agreement, (i) an approved leave of absence shall not be considered a termination of employment or service for purposes of an
Award, and (ii) any Participant who is employed by or performs services for a Parent or a Subsidiary shall be considered to have terminated employment or service for purposes of an Award if such Parent or Subsidiary no longer qualifies as a
Parent or Subsidiary, unless such Participant remains employed by the Company, a Parent, or a Subsidiary. 
 (d)
Taxes. The Company, its Parent and Subsidiaries are authorized to withhold from any delivery of Stock in connection with an Award, any other payment relating to an Award or any payroll or other payment to a Participant amounts of withholding
and other taxes due or potentially payable in connection with any transaction involving an Award, and to take such other action as the Committee may deem necessary or advisable to enable the Company, its Parent and Subsidiaries and Participants to
satisfy obligations for the payment of withholding taxes and other tax obligations relating to any Award. This authority shall include authority to withhold or receive Stock or other property and to make cash payments in respect thereof in
satisfaction of a Participant’s tax obligations. 
 (e) Changes to the Plan and Awards. The Board may
amend, alter, suspend, discontinue or terminate the Plan or the Committee’s authority to grant Awards under the Plan without the consent of stockholders or Participants, except that any such action shall be subject to the approval of the
Company’s stockholders at or before the next annual meeting of stockholders for which the record date is after such Board action if such stockholder approval is required by any federal or state law or regulation or the applicable rules of any
stock exchange, and the Board may otherwise determine to submit other such changes to the Plan to stockholders for approval; provided, however, that, without the consent of an affected Participant, no such action may materially impair the rights of
such Participant under any Award theretofore granted to him or her (as such rights are set forth in the Plan and the Award Agreement). The Committee may waive any conditions or rights under, or amend, alter, suspend, discontinue, or terminate, any
Award theretofore granted and any Award Agreement relating thereto; provided, however, that, without the consent of an affected Participant, no such action may materially impair the rights of such Participant under such Award (as such rights are set
forth in the Plan and the Award Agreement). Notwithstanding the foregoing, the Board or the Committee may take any action, including, without limitation, actions affecting or terminating outstanding Awards if and to the extent permitted by the Plan
or applicable Award Agreement. The Board or the Committee shall also have the authority to establish separate sub-plans under the Plan with respect to Participants resident in a particular jurisdiction (the terms of which shall not be inconsistent
with those of the Plan) if necessary or advisable to comply with applicable law or regulation of such jurisdiction. 
 (f) No Rights to Awards; No Stockholder Rights. No person shall have any claim to be granted any Award under the Plan, and there is no obligation for uniformity of treatment of Participants. No
Award shall confer on any Participant any of the rights of a stockholder of the Company unless and until Stock is duly issued or transferred and delivered to the Participant in accordance with the terms of the Award or, in the case of an Option, the
Option is duly exercised. 
 (g) Unfunded Status of Awards; Creation of Trusts. The Plan is intended to
constitute an “unfunded” plan for incentive and deferred compensation. With respect to any payments not yet made to a Participant pursuant to an Award, nothing contained in the Plan or any Award shall give any such Participant any rights
that are greater than those of a general creditor of the Company; provided, however, that the Committee may authorize the creation of trusts or make other arrangements to meet the Company’s obligations under the Plan to deliver cash, Stock,
other Awards, or other property pursuant to any Award, which trusts or other arrangements shall be consistent with the “unfunded” status of the Plan unless the Committee otherwise determines with the consent of each affected Participant.

 (h) Non-exclusivity of the Plan. Neither the adoption of the Plan by the Board nor any submission of
the Plan or amendments thereto to the stockholders of the Company for approval shall be construed as creating any limitations on the power of the Board or the Committee to adopt such other compensatory arrangements as it may deem necessary or
advisable, including, without limitation, the granting of stock options otherwise than under the Plan, and such arrangements may be either applicable generally or only in specific cases. 

(i) No Fractional Shares. No fractional shares of Stock shall be issued or delivered pursuant to the Plan or any
Award. The Committee shall determine whether cash, other Awards, or other property shall be issued or paid in lieu of such fractional shares or whether such fractional shares or any rights thereto shall be forfeited or otherwise eliminated.

 (j) Compliance with Law and Regulation. It is the intent of the Company that employee Options, SARs and
other Awards designated as Awards subject to Section 7(e) shall constitute “qualified performance-based compensation” within the meaning of Section 162(m) of the Code. Accordingly, if any provision of the Plan or any Award
Agreement relating to such an Award 

 
does not comply or is inconsistent with the requirements of Section 162(m) of the Code, such provision shall be construed or deemed amended to the extent necessary to conform to such
requirements, and no provision shall be deemed to confer upon the Committee or any other person discretion to increase the amount of compensation otherwise payable in connection with any such Award upon attainment of the performance objectives. With
respect to persons subject to Section 16 of the Exchange Act, it is the intent of the Company that the Plan and all transactions under the Plan comply with applicable provisions of Rule 16b-3. In addition, it is the intent of the Company that
ISOs comply with applicable provisions of Section 422 of the Code, and that, to the extent applicable, Awards comply with the requirements of Sections 409A and 280G of the Code or an exception from such requirements. The Committee may revoke
any Award if it is contrary to law or regulation or modify an Award to bring it into compliance with any applicable law or regulation. 
 (k) Governing Law. The validity, construction and effect of the Plan, any rules and regulations relating to the Plan and any Award Agreement shall be determined in accordance with the laws of the
State of Delaware, without giving effect to principles of conflicts of laws, and applicable federal law. 
 (l)
Plan Termination. The Plan shall continue in effect until terminated by the Board.

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