Document:

Exhibit 10.34

 

Execution Copy

 

CONFIDENTIAL

 

11th February, 2009

 

VIA HAND DELIVERY

 

Alasdair Haynes

[ADDRESS]

 

 

Dear Alasdair:

 

Without Prejudice and Subject to Contract

 

This letter will confirm the agreement (the “Agreement”) that has been reached by and between you and Investment Technology Group, Inc. (“ITG” or the “Company”) in connection with the termination of your employment with ITG. For the purposes of this Agreement references to “Group Company shall mean any company of which the Company is a Subsidiary (its holding company) and any Subsidiaries of the Company or of any such holding company. “Subsidiary” in relation to a company (a holding company) means a subsidiary (as defined in section 1159 of the Companies Act 2006) and any other company which is a subsidiary (as so defined) of a company which is itself a subsidiary of such holding company.

 

 

1.             Separation from Service.

 

(a)           Effective the close of business 6 May 2009 (the “Separation Date”) your employment with the Company shall terminate.  On or before such time you shall resign from all positions with the Company and its subsidiaries, including your positions as Managing Director and a member of the applicable boards of directors of the Company’s subsidiaries on which you served and any committee(s) thereof.  You agree promptly to execute any documents necessary to effectuate such resignations with the relevant authorities.

 

(b)           On the Separation Date, you shall receive a payment by bank credit transfer into your normal bank account of all unpaid compensation and contractual benefits that you have earned and/or accrued up to the Separation Date, less statutory deductions.

 

(c)           The Company will reimburse to you in respect of business and travel expenses properly incurred by you up to the Separation Date, subject to you submitting all necessary claims for business and travel expenses (and relevant receipts) within seven days of the Separation Date.  You agree that thereafter you shall not be entitled to reimbursement for any further claims in relation to such expenses.

 

(d)           The Company shall maintain the existing health insurance cover for you and for your family for a period of 9 months from the Separation Date, or the date on which you commence employment or any remunerated engagement with another employer, whichever is sooner.  You are

 

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required to notify the Company in writing when you accept an offer of employment or engagement with another employer.

 

(e)           With effect from the Separation Date, all of your contractual entitlements and any non contractual benefits will cease, save as specified in this Agreement.

 

(f)            The Company shall continue for a period of 9 months from the Separation Date to make pension payments at the rate of 15% of the base salary you earned as at the Separation Date into the Company’s pension scheme.

 

2.             Garden Leave

 

(a)           You shall remain an employee of the Company but you shall not be required to perform any work for the Company or  any Group Company between 6 February 2009 and the Separation Date (“Garden Leave”).

 

(b)           During Garden Leave the Company shall be under no obligation to provide any work to, or vest any powers in you and you shall have no right to perform any work for the Company or any Group Company.

 

(c)           During Garden Leave you shall:

 

(i)            continue to receive your salary and all contractual benefits (including for the avoidance of doubt pension contributions) in the usual way (subject to the rules of the relevant benefit

 

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schemes in force from time to time).  The Company will declare these benefits to HM Revenue and Customs at the appropriate time and you will be solely liable for any further tax or National Insurance contributions due in relation to them;

 

(ii)           remain an employee of the Company and bound by the terms of your contract of employment with the Company;

 

(iii)          not, without the prior consent of Mats Goebels, attend your place of work or any other premises of the Company or any Group Company;

 

(iv)          not, without the prior consent of Mats Goebels contact or deal with (or attempt to contact or deal with) any other officer, employee, consultant, client, customer, supplier, agent, distributor, shareholder, adviser or other business contract of the Company or any Group Company.  You may, however, meet up with employees of the Company on a purely social basis;

 

(v)           be deemed to take any accrued but unused holiday entitlement;  and

 

(vi)          (except during any periods taken as holiday in accordance with the Company’s usual procedures) ensure that Mats Goebels knows how you can be contacted during each working day.

 

3.             Separation Payments and Benefits.  Subject to your execution of this Agreement and execution of Schedule 2 to this Agreement by your adviser named at Paragraph 5 below, and in consideration for your agreement to be bound by the promises set forth in this Agreement in addition to the amounts described in Paragraphs 1 and 2  above, you shall receive:

 

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(a)           The sum of £394,300 (less UK statutory deductions) within 30 business days of receipt by the Company of this Agreement signed by you, and Schedule 1 signed by the adviser named at Paragraph 5.

 

(b)           The sum of £651,667 payable in six (6) equal monthly installments starting on the date four months after receipt by the Company of this Agreement signed by you (subject in all respects to execution of this Agreement by you and your adviser as described above), as compensation for loss of office.  The first £30,000 shall be paid without deduction of PAYE or National Insurance.  The balance shall be paid subject to deduction of basic rate tax only and after issuance of your P45.

 

(c)           The sum of £282,833 payable in three (3) equal monthly installments.  The first of the three (3) installments will be made within thirty (30) business days of receipt by the Company of this Agreement signed by you (subject in all respects to execution of this Agreement by you and your adviser as described above and to such statutory deductions that may be applicable), with subsequent payments on each monthly anniversary of the first payment date.

 

(d)           Restricted stock units (“RSU’S”) with the fair market value (such fair market value to be taken at March 13th 2009) of the sum of £389,000. Such RSU’s to vest over a period of 3 years commencing the date of this Agreement, details of the vesting shall be set out in a separate agreement which shall include standard vesting provisions and shall also be subject to a forfeiture provision in the event that you solicit employees of the Company within the three year vesting period.

 

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(e)           All outstanding stock options you hold as of the Separation Date that are not already vested and exercisable as of the Separation Date will automatically terminate as of the Separation Date.  Outstanding stock options that you hold that are already vested as of the Separation Date are hereby amended to remain exercisable until the end of the applicable option term (August 1, 2010) pursuant to the terms of the applicable stock option grant agreement evidencing such outstanding vested stock options.  All outstanding restricted stock units that have not yet become vested as of the Separation Date shall be forfeited.  The foregoing treatment of your equity incentive awards is subject in all respects to your execution and non-revocation of this Agreement as described above.

 

(f)         The Company makes no warranty as to the taxable status of the payments made under this Agreement.  In the event that the payments made pursuant to this Agreement are at any time assessed to income tax, PAYE and/or employee national insurance contributions (“Taxation”) whether in addition to such deductions as the Company may make at the time payment is made or otherwise, you agree to be responsible for the payment of such Taxation and, in the event that the HMRC seeks to recover the whole or part of the Taxation from the Company, to indemnify the Company fully in respect thereof and in respect of any fines, interest and penalties thereon.  The Company shall promptly inform you of any demand for payment in connection with the payments made under this Agreement to HMRC, or other relevant authority. You agree to pay the Company the amount of any Taxation (together with any such interest and penalties) within 28 days of the Company serving on you a statement prepared by the Company’s auditors certifying both the amount to be paid in respect of this indemnity and that the Taxation falls due to be accounted for to a relevant taxing authority within 30 days of the date of the

 

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statement.  In the event that following payment of such Taxation by the Company to HMRC you successfully dispute the liability to tax of payments made under this Agreement and the Taxation is refunded to the Company, the Company agrees to pay any such refund to you within 14 days of receipt thereof.

 

4.             General Release of All Claims.

 

(a)           You confirm that you have considered the facts surrounding your employment and the offices arising therefrom and the termination of your employment and consequent loss of office. You intimate and assert that you could bring statutory or contractual claims, proceedings, applications or complaints against the Company or any Group Company or any of their present or former officers or employees or their shareholders, before any employment tribunal or any court, in any jurisdiction, for the claims listed in Schedule 1 to this Agreement (the “Claims”).

 

(b)           The terms of this Agreement are reached without admission of liability and are in full and final settlement of:-

 

(i)            the Claims;  and

 

(ii)           any other claims, costs, expenses, rights of action of any kind whatsoever anywhere in the world arising out of or in connection with your employment and or the termination of your employment or loss of office (whether or not you or the Company is now aware of the same and whether or not they are or could be in the contemplation of the parties at the time of signing the

 

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Agreement, whether under statute, at common law or otherwise and whether under English law and/or European Community law which you have or may have against the Company or its present or former officers or employees or any Group Company or its present or former officers or employees arising out of or in connection with his employment by the Company or any Group Company or its termination whether such fall within the jurisdiction of an employment tribunal or not.  The Company confirms that by signing this Agreement it is settling all claims, costs, expenses, rights of action of any kind whatsoever anywhere in the world against you, save in so far as such liability cannot be waived by the Company by law, in relation to claims arising out of in connection with acts of gross negligence, default, breach of duty or trust.

 

(c)           The parties agree that Paragraphs 4 (a) and (b) shall not apply to any claim to enforce the terms of this Agreement, any pension rights or pension benefits which have accrued to you up to the Separation Date, or to any rights to claim in respect of personal injury or illness sustained by reason of your employment with the Company and of which you are reasonably unaware at the Separation Date.

 

(d)           You warrant and represent to the Company, that the Claims listed at Schedule 1 are all the claims or prospective claims which you intimate and assert that you may have against the Company or any Group Company arising out of or in connection with your employment or its termination.

 

(e)           You warrant that neither you nor anyone acting on your behalf will issue any future applications, claims forms, summons or proceedings against the Company or any Group in respect of Claims detailed in Schedule 1 or otherwise.

 

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(f)            It is a fundamental term of this Agreement that the payments and benefits provided for under it, shall at all times be conditional on your full compliance with your obligations under the terms of this Agreement, including refraining from issuing or pursuing any type of proceedings in respect of the Claims and otherwise complying with all of your obligations under the terms hereof.  If you should breach any of your obligations under this Agreement, the payments set out in Paragraphs 3(a)-(c) (inclusive) shall be repayable to the Company on demand and to the extent that it has not then been paid to you, the Company shall then cease to be obliged to do so. The total sums paid under this Agreement together with all costs (including legal costs) reasonably incurred by the Company in their recovery shall be recoverable as a debt from you in such circumstances.

 

5.             Legal Advice

 

(a)           You hereby warrant and represent that you have received independent legal advice from Meriel Schindler of Withers LLP, 16 Old Bailey, London, EC4M 7EG, a relevant independent legal adviser acting in her professional capacity and in respect to whom there is currently (and was at the time of giving such advice) in force a valid certificate of insurance or an indemnity provided for members of his profession for the risk of a claim by you in respect of loss arising in consequence of the advice she has given to you. The Company shall pay legal fees of up to £4000 plus VAT direct to your legal advisors in respect of advice given on this Agreement within 30 days of receipt of an invoice addressed to you but marked payable by the Company.

 

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(b)           You hereby further warrant and represent that the advice referred to above, related to the terms and effect of this Agreement, and in particular the effect of the terms of this Agreement on your ability to pursue your rights before an Employment Tribunal and/or otherwise against the Company, any Group Company and any individuals, to which/whom this Agreement refers.

 

(c)           It is a condition of this Agreement that the legal adviser identified above places on headed paper and signs the confirmations set out in Schedule 2 attached.

 

(d)           This Agreement satisfies the conditions regulating Compromise Agreements under Section 77(4A) of the Sex Discrimination Act 1975, Section 72(4A) of the Race Relations Act 1976, Section 288(2B) of the Trade Union and Labour Relations (Consolidation) Act 1992, Section 203 (3) of the Employment Rights Act 1996, Schedule 3A of the Disability Discrimination Act 1995 and Regulation 35(3) of the Working Time Regulations 1998, Section 49(4) of the National Minimum Wage Act 1998, Regulation 41(4) of the Transnational Information and Consultation etc. Regulations 1999, paragraph 2(2) of Schedule 4 of the Employment Equality (Religion and Belief) Regulations 2003, and paragraph 2(2) of Schedule 5 of the Employment Equality (Age) Regulations and under each of the equivalent provisions applicable to each of the other statutes/regulations referred to in Schedule 1.

 

6.             Continuing Obligations Following Your Separation from Service.

 

(a)           You agree, upon reasonable notice from the Company, to provide truthful and reasonable cooperation, including but not limited to your appearance at interviews with the Company’s counsel, (i) in

 

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connection with the defense of any and all charges, complaints, claims, liabilities, obligations, promises, agreements, demands and causes of action of any nature whatsoever, which are asserted by any person or entity concerning or related to any matter that arises out of or concerns events or occurrences during your employment with the Company, and (ii) concerning requests for information about the business of the Company or your involvement or participation therein.  The Company will reimburse you for reasonable and necessary travel and other expenses and loss of earnings which (in the case of expenses) you may incur at the specific request of the Company and as approved by the Company in accordance with its policies and procedures established from time to time.

 

(b)           By signing below, you represent and warrant that you have returned and/or agree to immediately return to the Company any and all original and duplicate copies of all files, calendars, books, records, notes, manuals, computer disks, diskettes and any other magnetic and other media materials and any and all Company property and equipment, including, but not limited to, computers and modems you have in your possession or under your control belonging to the Company or the relevant Group Company and containing confidential or proprietary information concerning the Company or the relevant Group Company or their customers or operations.  You have also returned your Company keys, credit cards, etc., to the Company.  By signing this Agreement, you confirm that you have not retained in your possession or under your control any of the documents or materials described in this section.

 

(c)           In consideration of the sum of £100 (less UK statutory deductions) and in accordance with your terms and conditions of contract dated 17 November 1998, you agree that you will not from the period beginning on the Separation Date through the twelve (12) month anniversary of the Separation

 

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Date, less any period spent on Garden Leave, you will not in any manner, directly or indirectly, engage, participate or be interested in any business, entity or endeavor with Liquidnet or Instinet.  You will be deemed to be directly or indirectly engaged or participating in, a business, entity or endeavor with Liquidnet or Instinet if you are a principal, agent, stockholder (or other proprietary or financial interest holder), director, officer, employee, salesperson, sales representative, broker, partner, individual proprietor, lender, consultant or otherwise.

 

(d)           In consideration of the sum of £100 (less UK statutory deductions) and in accordance with your terms and conditions of contract dated 17 November 1998, you agree that you will not without the written consent of the Company, for a period of nine (9) months following the Separation Date, less any period spent on Garden Leave, directly or indirectly:  (i) solicit or canvas the trade or patronage of, or sell to (A) any former or existing clients of the Company for whom you directly or indirectly provided services or for whom you had significant responsibility as an employee of the Company during the two (2) years prior to your Separation Date, or (B) any person or entity that becomes a client of the Company during the one (1) year period following your Separation Date and for which you participated in a proposal to provide services during the two (2) years prior to your Separation Date; or (ii) induce or attempt to influence any employee, contractor or consultant of the Company to terminate his employment or relationship with the Company or solicit for employment any persons who were employees, contractors or consultants of the Company at any time during your employment with the Company.  This restriction does not apply to any employees who are made redundant by the Company. Nothing in this Paragraph

 

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shall prevent you from having contact with clients or potential clients, provided always that such contact is on a purely social basis.

 

(e)           You agree that you will not, at any time hereafter, make, or cause to be made, any statement, observation or opinion, in each case, of a public nature, that disparages, impugns or in any way reflects adversely upon the business, good will or reputation of the Company or any Group Company.  The restriction in the preceding sentence will include, but not be limited to, your agreement that you will not, without the prior consent of the Company, initiate any contacts with, nor respond with unfavourable comments about the Company to any inquiries from, the media concerning the Company, your employment with the Company and/or your separation from service with the Company.  You may, however, give personal opinions on the market, state that you left the Company following a reorganisation and indicate what your future business plans might be.  The Company shall not and the Company shall not permit its directors, employees or agents will not, at any time hereafter, make or cause to be made any public statement, observation or opinion, in each case, that disparages, impugns or in any way reflects adversely upon your reputation.  The restriction in the preceding sentence will include, but not be limited to, the Company’s agreement that it will not, without your prior consent respond with unfavorable comments about you to inquiries from the media concerning you, your employment with the Company and/or the termination of your employment with the Company. The provisions of this Paragraph 6 will not impair either party’s right to provide truthful testimony or other information as required by law or regulatory requirement.

 

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(f)            The Company shall not issue any press statement, further to its press statement dated 5 February 2009, concerning your resignation without first obtaining the consent to the wording (such consent not to be unreasonably withheld).

 

(g)           You acknowledge and agree that the restrictions and obligation contained in this Paragraph 6, in view of the nature of the business in which the Company and any Group Company are engaged, are reasonable, necessary and in the Company’s best interests in order to protect the legitimate interests of the Company and any Group Company, and that any violation thereof shall be deemed to be a material breach of this agreement and that the Company shall be entitled to pursue any and all remedies available to it in a court of competent jurisdiction including, but not limited to application for temporary, preliminary, and permanent injunctive relief as well as damages, an equitable accounting of all earnings, profits and other benefits arising from such violation.  In the event the Company brings an action to redress a violation of this Paragraph 6, the prevailing party in any claims in such action shall be entitled to recover all of its reasonable attorneys’ fees and costs incurred in connection therewith.  If the Company prevails in any claims in such action, you will be liable for the return of the separation payments detailed in Paragraphs 4(a) -(c) (inclusive) and benefits and for the return of any profits realized in connection with your exercising or receiving payment with respect to any of the equity incentive awards that were amended as set forth in Paragraph 4.

 

7.             No Admissions.  The Company and you agree that nothing contained in this Agreement is an admission by the Company or you of any wrongdoing, liability, unlawful conduct or breach of any duty or obligation.

 

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8.             Confidentiality.

 

(a)           You and the Company agree that you have kept, and will keep, the existence and terms of this Agreement confidential, and will not disclose them to anyone except your attorneys, financial advisors and immediate family members, whom you will advise of this confidentiality provision.  No other disclosure will be permitted except:  (a) pursuant to an action to enforce the terms of this Agreement, in which case it will be introduced under seal to the court, (b) in response to a request by any governmental or regulatory agency, (c) as may be required by any in response to compulsory process of law.  The parties further agree that nothing in this Agreement will prohibit or restrict you or the Company from providing information to, testifying or otherwise assisting in any investigation or proceeding brought by, or as required by any federal, state or local regulatory agency, law enforcement agency, legislative body, or self-regulatory organization.

 

(b)           In consideration of the payment of £100.00 (less UK statutory deductions) you undertake that you will not at any time after the date of this Agreement disclose or make use of, and you confirm that you have not prior to the date of this Agreement disclosed or made use of, for your own or any other person’s benefit any Confidential Information belonging to or concerning the Company or any Group Company or any of its/their customers, agents, suppliers or clients, except where required to do so by law. For the purposes of this Paragraph “Confidential Information” shall mean customer orders, execution and market price data maintained by ITGE and/or BARRA Inc. and/or ITG Inc. and/or Investment Technology Group International Ltd. (“ITGI”) in connection with the operation of POSIT (the “POSIT

 

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Database”), details of suppliers and their terms of business, details of customers and their requirements, the prices charged to and terms of business with customers, marketing plans and sales forecasts, financial information, results and forecasts (save to the extent that these are included in published audited accounts), any proposals relating to the acquisition or disposal of a company or business or any part thereof or to any proposed expansion or contraction of activities, details of target customers and plans relating to them, details of executives and officers and of the remuneration and other benefits paid to them, information relating to research activities, inventions, secret processes, designs, formulae and product lines, any information held on computer, any information which you have been told is confidential and any information which has been given to the Company or any Group Company in confidence by customers, suppliers or other persons.

 

9.             Governing Law.  This Agreement will be construed under the laws of England and Wales and subject to the exclusive jurisdiction of the English Courts.

 

10.           Entire Agreement.  This Agreement, the RSU agreement referred to in Paragraph 3(d) above and the agreement setting out your rights in respect of vested options (referred to in Paragraph  3(e)) above cancel, supersede and replace any and all prior agreements (written, oral or implied-in-fact or in law) between you and the Company regarding all of the subjects covered by this Agreement except as otherwise specifically provided in this Agreement.  This Agreement, the RSU agreement referred to in Paragraph 3(d) above and the agreement setting out your rights in respect of vested options (referred to in Paragraph  3(e) above) are the full, complete and exclusive agreement between you and the Company

 

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regarding the subjects covered by this Agreement except as otherwise specifically provided in this Agreement, and neither you nor the Company is relying on any representation or promise that is not expressly stated in this Agreement.  This Agreement, the RSU agreement referred to in Paragraph 3(d) above and the agreement setting out your rights in respect of vested options (referred to in Paragraph  3(e))  may not be changed unless the changes are in writing and signed by each of the parties.

 

11.           Severability.  This Agreement, although marked “without prejudice and subject to contract” will, at the point when it is signed by all parties, be treated as an open document evidencing an agreement binding on all parties.

 

(a)           The restrictions and waivers by you set out in this Agreement (on which you have had the opportunity to take independent advice, as you hereby acknowledge) are separate and severable and are considered by the parties to be reasonable in all the circumstances.  It is agreed that if any of the terms, by themselves, or taken together, shall be adjudged to go beyond what is reasonable if part or parts of the wording thereof were deleted, the relevant restriction(s) shall apply with such deletion(s) as may be necessary to make it, or them, valid and effective.

 

(b)           This Agreement may be executed in any number of counterparts, such of which, when executed shall be an original, and all the counterparts together shall constitute one and the same instrument.

 

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12.           Third Party Rights

 

(a)           The Contracts (Rights of Third Parties) Act 1999 applies to the Agreement. Nothing in this Agreement is intended to or shall confer any benefit on any person[s] other than the Company, its Group Companies its/their respective directors officers employees and shareholders and you.

 

(b)           The Company confirms that once this Agreement has been signed by you in accordance with the provisions hereof and it has received the signed original copy along with the completed adviser’s schedule and it has been duly signed by an appropriate and authorised person on behalf of the Company, it shall then and only then become of binding effect and will thereby cease to be “without prejudice and subject to contract”.

 

[SIGNATURE PAGE FOLLOWS]

 

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Very truly yours,

 

 

	
By:
    	
/s/   Robert C. Gasser
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Robert   C. Gasser
    	
 
    

 

PRESIDENT AND CEO OF INVESTMENT TECHNOLOGY GROUP, INC

 

acting for and on behalf of

 

INVESTMENT TECHNOLOGY GROUP EUROPE LIMITED

Dated: February 12, 2009

AGREED TO AND ACCEPTED BY:

 

 

	
 
    	
/s/ Alasdair Haynes
    	
 
    
	
 
    	
 
    
	
Alasdair   Haynes
    	
 
    

 

Dated:  February 11, 2009

 

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SCHEDULE 1

 

The Claims referred to in Paragraph 4(a) shall mean the following:

 

(i)            All personal injury claims of which you aware at the Separation Date (including, but without prejudice to the generality of the foregoing, all and any such claims arising out of or in connection with any illness, condition and/or circumstances of which you are currently aware) and you hereby represents and gives warranty that you are not aware of any circumstances which could give rise to a personal injury claim in the future; and

 

(ii)           All of the following claims (and in each case, where appropriate, the reference to the relevant statute/regulation is to that statute/regulation as amended from time to time, and where the reference is to a statute it also includes all regulations made thereunder from time to time):-

 

(a)           any claim(s) whatsoever in respect of notice pay in lieu of notice or damages for termination of employment without notice;

 

(b)           any claim(s) whatsoever for breach of contract (including but not limited to any claim in respect of unpaid wages or salary, unpaid holiday, unpaid contractual sick or paternity pay, share options or any bonus or commission or benefit schemes in which you participated during your employment);

 

(c)           any claim(s) whatsoever for unfair dismissal (including automatically unfair dismissal and unfair constructive dismissal);

 

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(d)           any claim(s) whatsoever for a redundancy payment, whether statutory or enhanced;

 

(e)           any claim(s) whatsoever for unlawful deductions from wages;

 

(f)            any claim(s) whatsoever for unlawful race discrimination, victimization and/or harassment under or arising out of rights or obligations conferred by the Race Relations Act 1976;

 

(g)           any claim(s) whatsoever for unlawful disability discrimination or victimization under or arising out of rights or obligations conferred by the Disability Discrimination Act 1995;

 

(h)           any claim(s) whatsoever for unlawful discrimination, victimization and/or harassment under or arising out of rights or obligations conferred by the Employment Equality (Age ) Regulations 2006;

 

(i)            any other claim(s) whatsoever under or arising out of rights or obligations conferred by the Employment Rights Act 1996 (including but not limited to those in relation to, victimization and detriment in employment under Parts IVA and V of the Employment Rights Act 1996);

 

(j)            any claim(s) whatsoever under or arising out of rights or obligations conferred by Section 3 of the Protection from Harassment Act 1997;

 

(k)           any claim in relation to protected disclosures under the Employment Rights Act 1996 and the Public Interest Disclosure Act 1998;

 

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(l)            any claim(s) whatsoever under or arising out of rights or obligations conferred by the Working Time Regulations 1998;

 

(m)          any claim(s) whatsoever under or arising out of rights or obligations conferred by the National Minimum Wage Act 1998;

 

(n)           any claim(s) whatsoever under or arising out of rights or obligations conferred by the Employment Relations Act 1999 and/or the Employment Relations Act 2004;

 

(o)           any claim(s) whatsoever under or arising out of rights or obligations conferred by the Employment Act 2002 and/or by the Employment Act 2002 (Dispute Resolution) Regulations 2004;

 

(p)           any claim(s) whatsoever for unlawful discrimination, victimization and/or harassment under or arising out of rights or obligations conferred by the Employment Equality (Religion or Belief) Regulations 2003;

 

(q)           any claim(s) whatsoever in respect of which an ACAS Conciliation Officer is authorised to act;

 

(r)            any claim(s) whatsoever arising as a consequence of the United Kingdom’s membership of the European Union;

 

(s)           any claim for failure to comply with obligations under the Human Rights Act; and

 

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(t)            any claim for failure to comply with obligations under the Data Protection Act 1998.

 

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SCHEDULE 2

 

(TO BE PLACED ON THE ADVISER’S HEADED PAPER)

 

I, Meriel Schindler of Withers LLP, 16 Old Bailey, London, EC4M 7EG, confirm that I am a relevant independent legal adviser for the purposes of the statutes and regulations referred to in the attached Agreement and that I have given legal advice to ALASDAIR HAYNES as to the terms and effect of this Agreement and in particular its effect on his ability to pursue his rights in the Employment Tribunals against the companies and individuals to which the Agreement refers.

 

I confirm that there was at the time of giving the said advice a certificate of insurance covering or an indemnity provided for members of my profession for the risk of any claim by ALASDAIR HAYNES for any loss arising in consequence of the advice given by me.

 

Signed:

 

Name:

 

Firm:

 

Date:

 

24Exhibit 10.40

 

CONFIDENTIAL

 

December 23, 2009

 

VIA HAND DELIVERY

 

Howard C. Naphtali

[ADDRESS]

 

Dear Howard:

 

This letter will confirm the agreement (the “Agreement”) that has been reached by and between you and Investment Technology Group, Inc. (“ITG” or the “Company”) in connection with your separation from service with ITG.

 

1.             Separation from Service.

 

(a)           Effective on the close of business February 3, 2010 (the “Separation Date”), upon mutual agreement between you and the Company, you have voluntarily resigned from all positions with the Company and its subsidiaries, including your positions as Chief Financial Officer, Managing Director, and an officer of the applicable subsidiaries of the Company, and a member of the applicable boards of directors of the Company’s subsidiaries on which you served and any committee(s) thereof.  You agree promptly to execute any documents necessary to effectuate such resignations.  Beginning February 4, 2010 and ending May 3, 2010 (the “Transition Services Agreement Termination Date”), you will provide short-term transition services to the Company at the reasonable request of the Company’s Chief Executive Officer pursuant to the terms of a Transition Services Agreement to be negotiated by you and the Company (the “Transition Services Agreement”).

 

(b)           On the Separation Date, you will receive a final paycheck which will include a payment for all unpaid compensation you have earned through the Separation Date, less any applicable deductions and withholdings.  If you are a participant in the Investment Technology Group, Inc. 401(k) Plan, you will cease to participate in that plan as of the Separation Date.  A contribution to the 401(k) plan (based on the historical amount you have elected to contribute to such plan) will be deducted from your final paycheck.  Specific information concerning the

 

 

distribution of your 401(k) Plan account will be forwarded to you separately.  Except as set forth herein and in the Transition Services Agreement (pursuant to the terms of such Transition Services Agreement), you are not entitled to any additional compensation, bonuses, payments, benefits, damages, attorneys’ fees or costs of any kind from ITG and the Releasees (as defined in Paragraph 3 below).

 

2.             Separation Payments and Benefits.  Subject to your execution and non-revocation of this Agreement and in consideration for your agreement to be bound by the promises set forth in Paragraphs 4 and 6 of this Agreement, in addition to the amounts described in Paragraph 1 above and, as stated in Paragraph 1(b) above, in lieu of any other compensation under any plan or program:

 

(a)           The Company will pay you (i) on February 16, 2010, in one lump sum, One Million Four Hundred Thirty Thousand Dollars ($1,430,000) and (ii) in eleven (11) monthly installments, the aggregate amount of Two Million One Hundred Five Thousand Nine Hundred Nineteen Dollars ($2,105,919), in each case less any applicable deductions and withholdings.  The first of the eleven (11) installments will be made on February 16, 2010 with subsequent payments paid on or about each monthly anniversary of the first payment date in accordance with the Company’s regularly scheduled payroll date.

 

(b)           If you timely elect to continue group health coverage under the provisions of the law known as “COBRA”, ITG will pay for the first twelve (12) months of your COBRA coverage. ITG will send you a separate notice detailing your rights under COBRA and if you have any questions about that notice, please contact Human Resources at 212.444.4222.  Upon completion of the twelfth month of COBRA coverage, ITG will cease contributing towards the cost of the COBRA premium on your behalf.  Thereafter, you will be responsible for the full cost of any further COBRA coverage.  Notwithstanding the foregoing, in the event you become eligible for (i) healthcare coverage through subsequent employment, or (ii) Medicare or Medicaid, ITG’s obligation to pay for your COBRA premium on your behalf will cease as of the date of such eligibility and you will be responsible for the full cost of any COBRA coverage that is incurred by ITG after the date of such subsequent eligibility for healthcare coverage. You must immediately notify ITG of such eligibility by contacting Human Resources at 212.444.4222 or via email to ITG_HR@itg.com as soon as you become aware of such eligibility.

 

(c)           All outstanding stock options you hold as of the Transition Services Agreement Termination Date that are not already vested and exercisable as of the Transition Services Agreement Termination Date will automatically terminate as of the Transition Services Agreement Termination Date.  Outstanding stock options that you hold that are already vested as of the Transition Services Agreement Termination Date shall, pursuant to the terms of the applicable stock option grant agreement evidencing such outstanding vested stock options, expire

 

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60 days after the Transition Services Agreement Termination Date.  In addition, all stock unit awards granted to you under the Company’s Amended and Restated Stock Unit Award Program Subplan (the “SUA Program”) that are not already vested as of the Transition Services Agreement Termination Date will automatically vest pursuant to the terms of the SUA Program and will be issued to you in accordance with the terms of the SUA Program.  Shares subject to stock unit awards granted to you under the SUA Program that are already vested as of the Transition Services Agreement Termination Date will be issued to you in accordance with the terms of the SUA Program.

 

(d)           Subject to your compliance with the covenants in Paragraph 4 below, you will continue to vest in all Basic Units, as defined in the Company’s Equity Deferral Award Program Subplan (the “EDA Subplan”) and Matching Units, as defined in the EDA Subplan, awarded to you pursuant to the grant notice dated March 23, 2009 under the EDA Subplan, as if you continued in employment with the Company on each applicable vesting date set forth in the grant notice, and the Basic Units and Matching Units will be settled on the schedule set forth in Section 7(a)(i) and (ii) of the EDA Subplan; provided that if (i) a change in control occurs prior to the applicable settlement date and the change in control transaction constitutes a “change in control event” within the meaning of such term under section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), or (ii) you incur a Disability (as defined in the EDA Subplan) or die prior to the applicable settlement date, in either case, any remaining Basic Units and Matching Units that have not yet vested and been settled shall be settled within 30 days following the date of the change in control, or within 60 days of your Disability or death, as applicable.  If a change in control occurs and the change in control transaction is not a “change in control event” within the meaning of such term under section 409A of the Code, any remaining Basic Units and Matching Units that have not yet been settled will not be settled upon the change in control but will continue to be settled according to the schedule set forth in Section 7(a)(i) and (ii) of the EDA Subplan.  In no event will you, directly or indirectly, designate the calendar year of settlement.

 

3.             General Release of All Claims.

 

(a)           Except as provided in (f) below, you, on behalf of yourself, your spouse, children, estate, successors and assigns, release and give up any and all claims, grievances, injuries, controversies, agreements, covenants, promises, debts, accounts, actions, causes of action, suits, arbitrations, sums of money, wages, attorneys’ fees, costs, damages, each which you may have against ITG and the Releasees (as defined below), jointly and individually, of whatever kind whatsoever each to the maximum extent legally capable of being waived, including but not limited to, claims arising out of your employment or other associations with the Company, or the termination of your employment with the Company.  This includes all claims based on anything that has occurred from the beginning of time to the date of your signing of this Agreement, regardless of whether you know of the claim or of your right to make a claim.  This release

 

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includes, but is not limited to, any claims under: the Age Discrimination in Employment Act, 29 U.S.C. Section 621, et seq., the Older Workers’ Benefits Protection Act, the Rehabilitation Act of 1973, the Worker Adjustment and Retraining Notification Act, 42 U.S.C. Section 1981, Title VII of the Civil Rights Act of 1964, the Sarbanes-Oxley Act of 2002, the Family and Medical Leave Act, the Equal Pay Act, the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) (including, but not limited to, claims for breach of fiduciary duty under ERISA), the Americans With Disabilities Act, the New York Executive Law, the New York Labor Law, New York State Human Rights Law, New York State Constitution, New York Civil Rights Law, New York City Human Rights Law, and all amendments to those laws; any claims under any other federal, state, or local employment discrimination law, and any claim under any other federal, state or local law dealing with employment or benefits, or concerning any other matter whatsoever; any claim under any agreement, whether express or implied; and any public policy, contract, tort or other common law claim, or any claim in equity.

 

(b)           In exchange for your release in (a) above, the Company releases and gives up any and all claims it may have against you or your executors, administrators, successors or assigns of whatever kind whatsoever to the maximum extent provided by law, arising out, and within the scope, of your employment with the Company or the termination thereof.  This includes all claims based on anything that has occurred from the beginning of time to the date the Company signs this Agreement, regardless of whether the Company knows of the claim or of its right to make a claim; provided that the claims released by the Company will not include any claims arising from your willful misconduct, misrepresentation or fraud or any act or omission by you constituting criminal conduct or a violation of the rules and/or regulations of any regulatory agency or self-regulatory organization.  This release includes, but is not limited to, any claim under any agreement, whether express or implied and any public policy, contract, tort or other common law claim.

 

(c)           You agree that your employment and contractual relationship, if any, with ITG and the Releasees is severed as of the Transition Services Agreement Termination Date and that none of ITG and the Releasees have any obligation to reemploy you.

 

(d)           You hereby acknowledge and agree that, upon receiving the payments set forth above, you will have received all amounts due from the Company through the Separation Date including, but not limited to, the following: (i) all compensation earned, (ii) payment for all accrued but unused paid vacation time, and (iii) reimbursement for all reasonable and necessary business, travel and entertainment expenses incurred on behalf of the Company.

 

(e)           For purposes of this Agreement, the term “ITG and the Releasees” includes ITG and its past, present and future direct and indirect parents, subsidiaries, affiliates, divisions, predecessors, successors, and assigns, and their respective current and former officers, directors,

 

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shareholders, representatives, agents and employees, in their official and individual capacities, jointly and individually.

 

(f)            The only claims that you are not waiving and releasing under this Agreement are claims you may have for: (i) unemployment, state disability, worker’s compensation, and/or paid family leave insurance benefits pursuant to the terms of applicable state law; (ii) continuation of existing participation in ITG-sponsored group health insurance program under the federal law known as “COBRA” and/or under an applicable state law counterpart(s); (iii) any benefits entitlements that are vested as of your Separation Date pursuant to the terms of an ITG-sponsored benefit plan; (iv) any claim not legally waivable by law; provided, however, that should you successfully contest the validity of the release hereunder, any monetary or economic benefit so obtained shall be offset by the value of all amounts paid or provided under this Agreement and the Transition Services Agreement; (v) any claim you may have to receive any amounts payable to you under this Agreement or any other claim to enforce your rights under this Agreement or the Transition Services Agreement; (vi) any claim you may have to indemnification as an officer, director or employee of the Company and its subsidiaries pursuant to the articles of incorporation or by-laws (or other governing instruments) of the Company and its subsidiaries and (vii) any claim or right that may arise after the date you execute this Agreement.

 

4.             Continuing Obligations Following Your Separation from Service.

 

(a)           You agree, upon reasonable notice from the Company, to provide truthful and reasonable cooperation, including but not limited to your appearance at interviews with the Company’s counsel, (i) in connection with the defense of any and all charges, complaints, claims, liabilities, obligations, promises, agreements, demands and causes of action of any nature whatsoever, which are asserted by any person or entity concerning or related to any matter that arises out of or concerns events or occurrences during your employment with the Company, and (ii) concerning requests for information about the business of the Company or your involvement or participation therein.  The Company will reimburse you for reasonable and necessary travel and other expenses which you may incur at the specific request of the Company and as approved by the Company in accordance with its policies and procedures established from time to time.

 

(b)           By signing below, you represent and warrant that you will return no later than the Transition Services Agreement Termination Date any and all original and duplicate copies of all files, calendars, books, records, notes, manuals, computer disks, diskettes and any other magnetic and other media materials and any and all Company property and equipment, including, but not limited to, computers and modems you have in your possession or under your control belonging to ITG or the Releasees and containing confidential or proprietary information concerning ITG or the Releasees or their customers or operations.  No later than the Transition Services

 

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Agreement Termination Date, you will also return your Company keys, credit cards, etc., to the Company.  Notwithstanding anything set forth in this Paragraph, you shall be entitled to retain the laptop previously provided to you by ITG (and any other office equipment as specifically agreed to by you and ITG’s Chief Executive Officer) subject to the following sentence.  By signing this Agreement, you confirm that, as of the Transition Services Agreement Termination Date, you will not have in your possession or under your control any of the documents or materials described in this Paragraph.

 

(c)           You agree that for a period of three (3) months following the Separation Date, you will be on garden leave and will not in any manner, directly or indirectly, engage or participate in, any business, entity or endeavor other than civic or charitable activities.  For the period beginning on the Transition Services Agreement Termination Date through the twelve (12) month anniversary of the Separation Date, you will not in any manner, directly or indirectly, engage, participate or be interested in any business, entity or endeavor with Liquidnet or Instinet.  You will be deemed to be directly or indirectly engaged or participating in, a business, entity or endeavor with Liquidnet or Instinet if you are a principal, agent, stockholder (or other proprietary or financial interest holder), director, officer, employee, salesperson, sales representative, broker, partner, individual proprietor, lender, consultant or otherwise.

 

(d)           You agree that you will not, for the period of time from the Transition Services Agreement Termination Date to the date on which all of the Basic Units and Matching Units granted to you pursuant to the EDA Subplan are settled in accordance with Paragraph 2(d) above (the “Non-Solicitation Period”), directly solicit, recruit, hire, or participate in the solicitation, recruitment, or hiring of any employee, contractor or consultant of ITG or any of its direct or indirect subsidiaries employed or retained by ITG or any of its direct or indirect subsidiaries at any time during the Non-Solicitation Period; provided, however, that the foregoing prohibition shall not apply to any former employee who was involuntarily terminated by ITG.

 

(e)           You agree that you will not, at any time hereafter, make, or cause to be made, any statement, observation or opinion, in each case, of a public nature, that disparages, impugns or in any way reflects adversely upon the business, good will or reputation of the Company or any Releasees.  The restriction in the preceding sentence will include, but not be limited to, your agreement that you will not, without the prior consent of the Company, initiate any contacts with, nor respond to any inquiries from, the media concerning the Company, your employment with the Company and/or your separation from service with the Company.  All employees of the Company who are aware of the existence of this Agreement will not, at any time hereafter, make, issue or authorize any public statement, observation or opinion that disparages, impugns or in any way reflects adversely upon your reputation.  The provisions of this Paragraph 4(e) will not impair either party’s right to provide truthful testimony or other information as required by law or regulatory requirement.

 

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(f)            You agree that you have certain obligations under the terms of that certain Patent and Confidentiality Agreement dated April 4, 1997, as amended on December 30, 2007 related to Inventions and Proprietary Information (in each case, as defined in such Patent and Confidentiality Agreement) which obligations are hereby incorporated by reference and made part of this Agreement.

 

(g)           You acknowledge and agree that the restrictions and agreements contained in Paragraphs 4(a) through 4(f), in view of the nature of the business in which ITG and the Releasees are engaged, are reasonable, necessary and in the Company’s best interests in order to protect the legitimate interests of ITG and the Releasees, and that any violation thereof shall be deemed to be a material breach of this Agreement and that the Company shall be entitled to pursue any and all remedies available to it in a court of competent jurisdiction including, but not limited to application for temporary, preliminary, and permanent injunctive relief, without the requirement to post a bond, as well as damages, an equitable accounting of all earnings, profits and other benefits arising from such violation.  In the event the Company brings an action to redress a violation of Paragraphs 4(a) through 4(f) or either party brings an action concerning an alleged breach of any other provision of this Agreement, the prevailing party in any claims in such action shall be entitled to recover all of its reasonable attorneys’ fees and costs incurred in connection therewith.  If the Company prevails in any claims in such action, you will be liable for the return of the separation payments and benefits.

 

5.             No Admissions.  The Company and you agree that nothing contained in this Agreement is an admission by the Company or you of any wrongdoing, liability, unlawful conduct or breach of any duty or obligation.

 

6.             Confidentiality.  You agree that, absent disclosure of this Agreement by the Company, you have kept, and will keep, the existence and terms of this Agreement confidential, and will not disclose them to anyone except your attorneys, financial advisors and immediate family members, whom you will advise of this confidentiality provision.  No other disclosure will be permitted except:  (a) pursuant to an action to enforce the terms of this Agreement, in which case   parties will seek that it be introduced under seal to the court, (b) in response to a request by any governmental or regulatory agency, (c) as may be required by any state or federal law or regulation, or (d) in response to compulsory process of law.  The parties further agree that nothing in this Agreement will prohibit or restrict you from providing information to, testifying or otherwise assisting in any investigation or proceeding brought by, any federal, state or local regulatory agency, law enforcement agency, legislative body, or self-regulatory organization.

 

7.             Governing Law.  This Agreement will be construed under the laws of the State of New York.

 

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8.             Entire Agreement.  This Agreement and the Transition Services Agreement cancels, supersedes and replaces any and all prior agreements (written, oral or implied-in-fact or in law) between you and the Company regarding all of the subjects covered by this Agreement except as otherwise specifically provided in this Agreement.  This Agreement is the full, complete and exclusive agreement between you and the Company regarding the subjects covered by this Agreement, and neither you nor the Company is relying on any representation or promise that is not expressly stated in this Agreement.  This Agreement may not be changed unless the changes are in writing and signed by each of the parties.

 

9.             Severability.  With the exception of Paragraph 3, if any provision of this Agreement or the application thereof is held invalid, the invalidity will not affect other provisions or applications, and to this end the provisions of this Agreement are declared to be severable.  In the event Paragraph 3 is held unenforceable by any court having competent jursidiction over this Agreement in connection with any action initiated or otherwise prosecuted by you, the Company’s obligations under Paragraph 2 will be null and void, and you will be liable for the return of the separation payments and benefits except as otherwise provided in Paragraph 3(f)(iv).

 

10.           Review, Revocation Period and Acknowledgments.  You acknowledge that  under the Older Workers Benefit Protection Act, you have had over twenty-one (21) calendar days after the date you received this Agreement within which to review and consider it, to discuss it with an attorney of your choosing and to decide whether or not to sign it.  This Agreement, should you choose to accept it, may only be signed on the Separation Date. You further understand and acknowledge that you will have seven (7) days following the date of your execution of this Agreement within which to revoke this Agreement (this deadline will be extended to the next business day should it fall on a Saturday, Sunday or holiday recognized by the U.S. Postal Service), and that this Agreement will not become effective or enforceable until that seven (7) day revocation period has expired.  In the event you seek to revoke this Agreement, you must provide the Company with written notice no later than the close of business on the seventh (7th) day following your execution of this Agreement.  Any notice of revocation will be sent to P. Mats Goebels, Managing Director, General Counsel, Investment Technology Group, Inc., 380 Madison Avenue, 4th Floor, New York, NY, 10017.  You are hereby advised to consult with an attorney of your choice prior to executing this Agreement.

 

YOU UNDERSTAND THAT THIS AGREEMENT RELEASES ANY AND ALL CLAIMS AND RIGHTS YOU MAY HAVE AGAINST THE COMPANY AND ALL OF THE OTHER RELEASEES AS SET FORTH ABOVE, AND THAT BY SIGNING THIS AGREEMENT, YOU ACKNOWLEDGE AND AFFIRM THAT:  (1) YOU ARE COMPETENT; (2) YOU WERE AFFORDED A REASONABLE TIME PERIOD OF OVER TWENTY-ONE (21) DAYS TO REVIEW AND CONSIDER THIS AGREEMENT,

 

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AND THAT ONCE YOU HAVE SIGNED THIS AGREEMENT YOU WILL THEN BE PERMITTED TO REVOKE THIS AGREEMENT AT ANY TIME DURING THE PERIOD OF SEVEN DAYS FOLLOWING ITS EXECUTION BY DELIVERING TO ITG A WRITTEN NOTICE OF REVOCATION; (3) YOU HAVE BEEN ADVISED TO CONSULT WITH AN ATTORNEY OF YOUR CHOICE PRIOR TO EXECUTING THIS AGREEMENT; (4) YOU HAVE READ AND UNDERSTAND AND ACCEPT THIS AGREEMENT AS FULLY AND FINALLY RESOLVING, WAIVING AND RELEASING ANY AND ALL CLAIMS AND RIGHTS WHICH YOU MAY HAVE AGAINST THE COMPANY AND THE OTHER RELEASEES AS SET FORTH ABOVE; (5) NO PROMISES OR INDUCEMENTS HAVE BEEN MADE TO YOU EXCEPT AS SPECIFICALLY SET FORTH IN THIS AGREEMENT; AND (6) YOU HAVE SIGNED THIS AGREEMENT FREELY, KNOWINGLY AND VOLUNTARILY, INTENDING TO BE LEGALLY BOUND BY ITS TERMS.

 

IN EXCHANGE FOR YOUR WAIVERS, RELEASES AND COMMITMENTS SET FORTH HEREIN, INCLUDING YOUR WAIVER AND RELEASE OF ALL CLAIMS ARISING UNDER THE AGE DISCRIMINATION IN EMPLOYMENT ACT, THE PAYMENTS, BENEFITS AND OTHER CONSIDERATIONS THAT YOU ARE RECEIVING PURSUANT TO THIS AGREEMENT EXCEED ANY PAYMENT, BENEFIT OR OTHER THING OF VALUE TO WHICH YOU WOULD OTHERWISE BE ENTITLED, AND ARE JUST AND SUFFICIENT CONSIDERATION FOR THE WAIVERS, RELEASES AND COMMITMENTS SET FORTH HEREIN.

 

11.           Application of Section 409A of the Internal Revenue Code.

 

(a)           This Agreement will be interpreted to avoid any penalty sanctions under section 409A of the Code.  If any payment or benefit cannot be provided or made at the time specified herein without you incurring sanctions under section 409A of the Code, then such benefit or payment will be provided in full at the earliest time thereafter when such sanctions will not be imposed.  Each payment made under this Agreement will be treated as a separate payment and the right to a series of installment payments under this Agreement will be treated as a right to a series of separate payments.  In no event will you, directly or indirectly, designate the calendar year of payment.

 

(b)           All reimbursements and in-kind benefits provided under this Agreement will be made or provided in accordance with the requirements of section 409A of the Code, including, where applicable, the requirement that (i) any reimbursement will be for expenses incurred during your lifetime (or during a shorter period of time specified in this Agreement), (ii) the amount of expenses eligible for reimbursement, or in kind benefits provided, during a calendar year may not affect the expenses eligible for reimbursement, or in kind benefits to be provided,

 

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in any other calendar year, (iii) the reimbursement of an eligible expense will be made on or before the last day of the calendar year following the year in which the expense is incurred, and (iv) the right to reimbursement or in kind benefits is not subject to liquidation or exchange for another benefit.

 

(c)           Notwithstanding any provision of this Agreement to the contrary, if, at the time of your “separation from service” with the Company, the Company has securities which are publicly traded on an established securities market and you are a “specified employee” (within the meaning of such term under section 409A of the Code) and it is necessary to postpone the commencement of any compensation payments or benefits otherwise payable pursuant to this Agreement as a result of your “separation from service” to prevent any accelerated or additional tax under section 409A of the Code, then the Company will postpone the commencement of the payment of any such payments or benefits hereunder (without any reduction in such payments or benefits ultimately paid or provided to you) that are not otherwise paid within the short-term deferral and separation pay plan exceptions under section 409A of the Code, until the first payroll date that occurs after the date that is six months following your “separation of service” with the Company.  If any payments are postponed due to such requirements, such postponed a mounts will be paid in a lump sum to you on the first payroll date that occurs after the date that is six (6) months following your “separation of service” with the Company.  If you die during the postponement period prior to the payment of postponed amount, the amounts withheld on account of section 409A of the Code will be paid to the personal representative of your estate within sixty (60) days after the date of your death.

 

[SIGNATURE PAGE FOLLOWS]

 

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Very   truly yours,
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
INVESTMENT TECHNOLOGY GROUP, INC.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Robert C. Gasser
    	
 
    
	
 
    	
Robert   C. Gasser
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
AGREED TO AND ACCEPTED BY:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
/s/ Howard C. Naphtali
    	
 
    
	
Howard   C. Naphtali
    	
 
    
	
 
    	
 
    
	
Dated:
    	
February   3, 2010
    	
 
    

 

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