Document:

albo_Ex10_6

		
			Exhibit 10.6
		

		
			 
		

		
			Restricted Stock Unit No. 87
		

		
			 
		

		
			ALBIREO PHARMA, INC.
		

		
			Restricted Stock Unit Award Grant Notice
		

		
			 
		

			
					
						1.           Name and Address of Participant:

					
					
						Simon N.R. Harford

				
	
					
						 

					
					
						50 Malden Street, Apt. 301

				
	
					
						 

					
					
						Boston, MA 02118

				
	
					
						 

					
					
						 

				
	
					
						2.           Date of Grant of Restricted Stock Unit Award:

					
					
						October 10, 2018

				
	
					
						 

					
					
						 

				
	
					
						3.           Maximum Number of Shares underlying Restricted Stock Unit Award:

					
					
						5,000 shares of Common Stock

				

		
			 
		

		
			4.           Vesting of Award: This Restricted Stock Unit Award shall vest as follows provided the Participant is an Employee of the Company or of an Affiliate on the applicable vesting: date:
		

		
			 
		

		
			This Restricted Stock Unit Award vests and becomes exercisable  as to 25% of the underlying Shares on October 10, 2019 and as to the remainder of the underlying Shares in equal installments on the 10th day of 12 consecutive calendar quarters beginning on January 10, 2020 and ending on October 10, 2022.
		

		
			 
		

		
			The Company and the Participant acknowledge receipt of this Restricted Stock Unit Award Grant Notice and agree to the terms of the Restricted Stock Unit Agreement attached hereto and incorporated by reference herein and the terms of this Restricted Stock Unit Award as set forth above.
		

		
			 
		

			
					
						 

					
					
						ALBIREO PHARMA, INC.

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						Name: Ronald H.W. Cooper

				
	
					
						 

					
					
						 

					
					
						Title: President and Chief Executive Officer

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Participant:

				

		
			 
		

		
			 
		

		
			 
		

		
			

		 

 

		

		
			 
		

		
			ALBIREO PHARMA, INC.
		

		
			 
		

		
			RESTRICTED STOCK UNIT AGREEMENT -
		

		
			 
		

		
			INCORPORA TED TERMS AND CONDITIONS
		

		
			 
		

		
			AGREEMENT made as of the date of grant set forth in the Restricted Stock Unit Award Grant Notice (the "Grant Detail") between Albireo Pharma, Inc. (the "Company"), a Delaware corporation, and the individual whose name appears on the Grant Detail (the "Participant").
		

		
			 
		

		
			WHEREAS, the Company desires to grant to the Participant restricted stock units ("RSUs") related to the Company's common stock, $0.01 par value per share ("Common  Stock"), as an inducement material to the Participant's entering into employment as Chief Financial Officer of the Company, starting October 10, 2018 (the "Start Date"), in accordance with the terms of an employment agreement with the Company dated October 4, 2018;
		

		
			 
		

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

		
			 
		

		
			1.            Definitions.
		

		
			 
		

		
			Unless otherwise specified or unless the context otherwise requires, the following terms, as used in this Agreement, have the following meanings:
		

		
			 
		

		
			Administrator means the Board of Directors, unless it has delegated power to act on its behalf to the Committee, in which case the term Administrator means the Committee.
		

		
			 
		

		
			Affiliate means a corporation which, for purposes of Section 424 of the Code, is a parent or subsidiary of the Company, direct or indirect.
		

		
			 
		

		
			Board of Directors  means the Board of Directors of the Company.
		

		
			 
		

		
			Code means the United States Internal Revenue Code of 1986, as amended, including any successor statute, regulation and guidance thereto.
		

		
			 
		

		
			Committee means the committee of the Board of Directors to which the Board of Directors has delegated power to act.
		

		
			 
		

		
			Corporate Transaction means the Company is consolidated with or acquired by another entity in a merger, consolidation, or sale of all or substantially all of the Company's assets or the acquisition of all of the outstanding voting stock of the Company in a single transaction or a series of related transactions by a single entity, other than a transaction to merely change the state of incorporation.
		

		
			 
		

		
			Director means any member of the Board of Directors.
		

		
			 
		

		
			
		

		
			

		 

 

		

		
			 
		

		
			Disability or Disabled means permanent and total disability as defined in Section 22(e)(3) of the Code.
		

		
			 
		

		
			Employee means any employee of the Company or of an Affiliate (including, without limitation, an employee who is also serving as an officer or director of the Company or of an Affiliate).
		

		
			 
		

		
			Exchange Act means the Securities Exchange Act of 1934,  as amended.
		

		
			 
		

		
			Securities Act means the Securities Act of 1933, as amended.
		

		
			 
		

		
			2.            Grant of Award.  The Company has granted to the Participant an award for the number of restricted stock units referenced in the Grant Detail (the “Award") .  Each RSU referenced in the Grant Detail, represents a contingent entitlement of the Participant to receive one share of the Company's Common Stock (the "Shares") on the terms and conditions and subject to all the limitations set forth herein and under United States securities and tax laws.
		

		
			 
		

		
			3.            Vesting of Award.
		

		
			 
		

		
			(a)           Subject to the terms and conditions set forth in this Agreement, the Award granted hereby shall vest as set forth in the Grant Detail and is subject to the other terms and conditions of this Agreement.
		

		
			 
		

		
			(b)          On each vesting date set forth in the Grant Detail, the Participant shall be entitled to receive such number of Shares equivalent to the number of RSUs as set forth in the Grant Detail provided that the Participant is employed by the Company or an Affiliate on the applicable vesting date. Such Shares shall thereafter be delivered by the Company to the Participant within five days of the applicable vesting date and in accordance with this Agreement.
		

		
			 
		

		
			(c)          Except as otherwise set forth in this Agreement, if the Participant ceases to be employed for any reason by the Company or by an Affiliate (the "Termination") prior  to a vesting date set forth in the Grant Detail, then as of the date on which the Participant's employment terminates, all unvested RSUs shall immediately be forfeited to the Company and this Agreement shall terminate and be of no further force or effect.
		

		
			 
		

		
			(d)          In the event that the Participant ceases to be employed by the Company or by an Affiliate due to Disability, the Award shall vest to the extent of a pro rata portion through the date of the Participant's termination of employment due to Disability of any Shares that would have vested on the next vesting date had the Participant not become Disabled. The proration shall be based upon the number of days accrued prior to the Participant's date of Disability. The Administrator shall make the determination both as to whether Disability has occurred and the date of its occurrence (unless a procedure for such determination is set forth in another agreement between the Company and such Participant, in which case such procedure shall be used for such determination). If requested, the Participant shall be examined by a physician selected or approved by the Administrator, the cost of which examination shall be paid for by the Company.
		

		
			 
		

		
			
		

		
			

		 

		

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			(e)           In the event of the death of the Participant while the Participant is employed by the Company or by an Affiliate, the Award shall vest to the extent of a pro rata portion through the date of the Participant's death of any Shares that would have vested on the next vesting date had the Participant not died. The proration shall be based upon the number of days accrued prior to the Participant's date of death.
		

		
			 
		

		
			4.            Prohibitions on Transfer and Sale.  This Award (including any additional RSUs received by the Participant as a result of stock dividends, stock splits or any other similar transaction affecting the Company '  s securities without receipt of consideration) shall not be transferable by the Participant otherwise than (i) by will or by the laws of descent and distribution, or (ii) pursuant to a qualified domestic relations order as defined by the Internal Revenue Code or Title I of the Employee Retirement Income Security Act or the rules thereunder. Except as provided in the previous sentence, the shares of Common Stock to be issued pursuant to this Agreement shall be issued,  during the Participant's lifetime, only to the Participant (or,  in the event of legal incapacity or in competence,  to the Participant's guardian or representative).  This Award shall not be assigned,  pledged or hypothecated in any way (whether by operation of law or otherwise) and shall not be subject to execution, attachment or similar process.  Any attempted transfer, assignment,  pledge,  hypothecation or other disposition of this Award or of any rights granted hereunder contrary to the provisions of this Section 4, or the levy of any attachment or similar process upon this Award shall be null and void.
		

		
			 
		

		
			5.            Adjustments. Upon the occurrence of any of the following events,  the Participant's rights with respect to the Award shall be adjusted as hereinafter provided.
		

		
			 
		

		
			(a)          Stock Dividends and Stock Splits. If (i) the shares of Common Stock shall be subdivided or combined into a greater or smaller number of shares or if the Company shall issue any shares of Common Stock as a stock dividend on its outstanding Common Stock, or
		

		
			(ii) additional shares or new or different shares or other securities of the Company or other non- cash assets are distributed with respect to such shares of Common Stock, the Award and the number of Shares deliverable thereunder shall be increased or decreased proportionately, and appropriate adjustments shall be made to reflect such events.
		

		
			 
		

		
			(b)          Corporate Transactions. In the case of a Corporate Transaction, the Administrator or the board of directors of any entity assuming the obligations of the Company hereunder (the "Successor Board”) shall make appropriate provision for the continuation of the Award on the same terms and conditions by substituting on an equitable basis for the unvested Shares then subject to the Award either the consideration payable with respect to the outstanding shares of Common Stock in connection with the Corporate Transaction or securities of any successor or acquiring entity.  In lieu of the foregoing, in connection with any Corporate Transaction, the Administrator may provide that, upon consummation of the Corporate Transaction, (i) the Award shall be terminated in exchange for payment of an amount equal to the consideration payable upon consummation of such Corporate Transaction to a holder of the number of shares of Common Stock comprising the unvested Shares subject to the Award,  or (ii) the Award shall be terminated.
		

		
			 
		

		
			
		

		
			

		 

		

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			(c)         Recapitalization or Reorganization. In the event of a recapitalization or reorganization of the Company other than a Corporate Transaction pursuant to which securities of the Company or of another corporation are issued with respect to the outstanding shares of Common Stock,  the Participant upon each vesting of the Award after the recapitalization or reorganization shall be entitled to receive the number of replacement securities which would have been received if the Award had so vested prior to such recapitalization or reorganization.
		

		
			 
		

		
			(d)          Dissolution or Liquidation of the Company. Upon the dissolution or liquidation of the Company, the Award, to the extent then unvested, will terminate and become null and void.
		

		
			 
		

		
			6.            Securities Law Compliance. Unless the offering and sale of the Shares to be issued upon the particular vesting of the Award shall have been effectively registered under the Securities Act, the Company shall be under no obligation to issue the Shares covered by such vesting unless the Company has determined that such vesting and issuance would be exempt from the registration requirements of the Securities Act and until the following conditions have been fulfilled:
		

		
			 
		

		
			(a)           The person(s) who for whom the Award vests shall warrant to the Company,  at the time of such vesting, that such person(s) are acquiring such Shares for their own respective accounts, for investment, and  not with a view to,  or for sale in connection with, the distribution of any such Shares, in which event the person(s) acquiring such Shares shall be bound by the provisions of the following legend which shall be endorsed upon any certificate(s) evidencing the Shares issued pursuant to such vesting:
		

		
			 
		

		
			"The shares represented by this certificate have been taken for investment and they may not be sold or otherwise transferred by any person,  including  a pledgee, unless (1) either (a) a Registration Statement with respect to such shares shall be effective under the Securities Act of 1933, as amended, or (b) the Company shall have received an opinion of counsel satisfactory to it that an exemption from registration under such Act is  then available, and (2) there shall have been compliance with all applicable state securities laws;" and
		

		
			 
		

		
			(b)           If the Company so requires, the Company shall have received an opinion of its counsel that the Shares may be issued upon such particular vesting in compliance with the Securities Act without registration thereunder. Without limiting the generality of the foregoing, the Company may delay issuance of the Shares until completion of any action or obtaining of any consent, which the Company deems necessary under any applicable law (including without limitation state securities or "blue sky" laws).
		

		
			 
		

		
			7.            Rights as a Stockholder. The Participant shall have no right as a stockholder, including voting and dividend rights, with respect to the RSUs subject to this Agreement.
		

		
			 
		

		
			8.            Fractional Shares.  No fractional shares shall be issued under this Agreement.
		

		
			 
		

		
			
		

		
			

		 

		

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			9.            Tax Liability of the Participant and Payment of Taxes. The Participant acknowledges and agrees that any income or other taxes due from the Participant with respect to this Award or the shares of Common Stock to be issued pursuant to this Agreement or otherwise sold shall be the Participant's responsibility.  Without limiting the foregoing, the Participant agrees that if under applicable law the Participant will owe taxes at each vesting date on the portion of the Award then vested the Company shall be entitled to immediate payment from the Participant of the amount of any tax or other amounts required to be withheld by the Company by applicable law or regulation. Any taxes or other amounts due shall be paid, at the option of the Administrator as follows:
		

		
			 
		

		
			(a)          through reducing the number of shares of Common Stock entitled to be issued to the Participant on the applicable vesting date in an amount equal to the statutory minimum of the Participant's total tax and other withholding obligations due and payable by the Company.  Fractional shares will not be retained to satisfy any portion of the Company's withholding obligation.  Accordingly, the Participant agrees that in the event that the amount of withholding required would result in a fraction of a share being owed, that amount will be satisfied by withholding the fractional amount from the Participant's paycheck;
		

		
			 
		

		
			(b)          requiring the Participant to deposit with the Company an amount of cash equal to the amount determined by the Company to be required to be withheld with respect to the statutory minimum amount of the Participant's total tax and other withholding obligations due and payable by the Company or otherwise withholding from the Participant's paycheck an amount equal to such amounts due and payable by the Company; or
		

		
			 
		

		
			(c)          if the Company believes that the sale of shares can be made in compliance with applicable securities laws, authorizing, at a time when the Participant is not in possession of material nonpublic information, the sale by the Participant on the applicable vesting date of such number of shares of Common Stock as the Company instructs a registered broker to sell  to satisfy the Company's withholding obligation, after deduction of the broker's commission, and the broker shall be required to remit to the Company the cash necessary in order for  the Company to satisfy its withholding obligation. To the extent the proceeds of such sale exceed the Company's withholding obligation the Company agrees to pay such excess cash to the Participant as soon as practicable. In addition, if such sale is not sufficient to pay the Company's withholding obligation the Participant agrees to pay to the Company as soon as practicable, including through additional payroll withholding, the amount of any withholding obligation that is not satisfied by the sale of shares of Common Stock. The Participant agrees to hold the Company and the broker harmless from all costs, damages or expenses relating to any such sale. The Participant acknowledges that the Company and the broker are under no obligation to arrange for such sale at any particular price. In connection with such sale of shares of Common Stock, the Participant shall execute any such documents requested by the broker in order to effectuate the sale of shares of Common Stock and payment of the withholding obligation to the Company. Sales pursuant to this paragraph may be structured, to the extent practicable, with the intention to comply with Section 10b5-l(c)(l(i)(B) under the Exchange Act.
		

		
			 
		

		
			
		

		
			

		 

		

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			The Company shall not deliver any shares of Common Stock to the Participant until it is satisfied that all required withholdings have been made.
		

		
			 
		

		
			10.          Participant Acknowledgements and Authorizations.
		

		
			 
		

		
			The Participant acknowledges the following:
		

		
			 
		

		
			(a)           The Company is not by this Award obligated to continue the Participant as an employee of the Company or an Affiliate.
		

		
			 
		

		
			(b)          The grant of this Award is considered a one-time benefit and does not create a contractual or other right to receive any other award, benefits in lieu of awards or any other benefits in the future.
		

		
			 
		

		
			(c)           The value of this Award is an extraordinary item of compensation outside of the scope of the Participant's employment or consulting contract,  if any.  As such the Award is not part of normal or expected compensation for purposes of calculating any severance, resignation, redundancy,  end of service payments, bonuses,  long-service awards,  pension or retirement benefits or similar payments. The future value of the shares of Common Stock is unknown and cannot be predicted with certainty.
		

		
			 
		

		
			11.          Notices. Any notices to the Company required or permitted by the terms of this Agreement shall be given by recognized courier service,  facsimile, registered or certified mail, return receipt requested,  addressed as follows:
		

		
			 
		

		
			Albireo Pharma, Inc.
		

		
			10 Post Office Square,  Suite 502 South
		

		
			Boston,  MA 02109
		

		
			Attention: General Counsel
		

		
			 
		

		
			or to such other address or addresses of which notice in the same manner has previously been given. Any such notice shall be deemed to have been given upon the earlier of receipt, one business day following delivery to a recognized courier service or three business days following mailing by registered or certified mail.
		

		
			 
		

		
			12.          Assignment and Successors.
		

		
			 
		

		
			This Agreement is personal to the Participant and without the prior written consent of the Company shall not be assignable by the Participant otherwise than by will or the laws of descent and distribution. This Agreement shall inure to the benefit of and be enforceable by the Participant's legal representatives.
		

		
			 
		

		
			13.          BENEFIT OF AGREEMENT.
		

		
			 
		

		
			Subject to the provisions hereof, this Agreement shall be for the benefit of and shall be binding upon the heirs,  executors, administrators,  successors and assigns of the parties hereto.
		

		
			 
		

		
			
		

		
			

		 

		

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			14.          Governing Law. This Agreement shall be construed and enforced in accordance with the law of the State of Delaware, without giving effect to the conflict of law principles thereof.
		

		
			 
		

		
			15.          Severability.  If any prov1s1on of this Agreement is held to be invalid or unenforceable by a court of competent jurisdiction,  then such provision or provisions shall be modified to the extent necessary to make such provision valid and enforceable, and to the extent that this is impossible, then such provision shall be deemed to be excised from this Agreement, and the validity, legality and enforceability of the rest of this Agreement shall not be affected thereby.
		

		
			 
		

		
			16.          Entire Agreement. This Agreement constitutes the entire agreement and understanding between the parties hereto with respect to the subject matter hereof and supersedes all prior oral or written agreements and understandings relating to the subject matter hereof (with the exception of acceleration of vesting provisions contained in any other agreement with the Company). No statement, representation, warranty, covenant or agreement not expressly set forth in this Agreement shall affect or be used to interpret, change or restrict the express terms and provisions of this Agreement.
		

		
			 
		

		
			17.          Modifications and Amendments.  The terms and provisions of this Agreement may be modified or amended by the Administrator; provided,  however,  any modification or amendment of this Agreement shall not, without the consent of the Participant, adversely affect the Participant's rights under this Agreement,  unless such amendment is required by applicable law.
		

		
			 
		

		
			18.          Waivers and Consents.  The terms and prov1s1ons of this Agreement may be waived, or consent for the departure therefrom granted, only by written document executed by the party entitled to the benefits of such terms or provisions. No such waiver or consent shall be deemed to be or shall constitute a waiver or consent with respect to any other terms or provisions of this Agreement, whether or not similar. Each such waiver or consent shall be effective only in the specific instance and for the purpose for which it was given and shall not constitute a continuing waiver or consent.
		

		
			 
		

		
			19.          Data Privacy. By entering into this Agreement, the Participant: (i) authorizes the Company and each Affiliate, and any agent of the Company or any Affiliate facilitating the grant of RSUs under this Agreement, to disclose to the Company or any of its Affiliates such information and data as the Company or any such Affiliate shall request in order to facilitate the grant of RSUs; and (ii) authorizes the Company and each Affiliate to store and transmit such information in electronic form for the purposes set forth in this Agreement.
		

		
			 
		

		
			20.          Section 409A. The Award evidenced by this Agreement is intended to be exempt from the nonqualified deferred compensation rules of Section 409A of the Code as a "short term deferral" (as that term is used in the final regulations and other guidance issued under Section 409A of the Code, including Treasury Regulation Section 1.409A-l(b)(4)(i)), and shall be construed accordingly.
		

		
			 
		

		 

		

			7bgcp-ex105_278.htm

 

Exhibit 10.5

 

AMENDMENT NO. 1

to

SEPARATION AND DISTRIBUTION AGREEMENT

 

 

This AMENDMENT NO. 1, dated as of November 8, 2018 (this “Amendment”), to the SEPARATION AND DISTRIBUTION AGREEMENT, dated as of December 13, 2017 (the “Agreement”), is by and among BGC Partners, Inc., a Delaware corporation (“BGC Partners”), BGC Holdings, L.P., a Delaware limited partnership (“BGC Holdings”), BGC Partners, L.P., a Delaware limited partnership (“BGC U.S. Opco” and together with BGC Partners and BGC Holdings, the “BGC Entities”), Newmark Group, Inc., a Delaware corporation (“Newmark”), Newmark Holdings, L.P., a Delaware limited partnership (“Newmark Holdings”), Newmark Partners, L.P., a Delaware limited partnership (“Newmark Opco” and together with Newmark and Newmark Holdings, the “Newmark Entities”), and solely for the limited purposes set forth therein, Cantor Fitzgerald, L.P., a Delaware limited partnership (“Cantor”), and solely for the limited purposes set forth therein, BGC Global Holdings, L.P., a Cayman Islands limited partnership (“BGC Global Opco” and collectively, the “Parties” and each, a “Party”), and is effective as of December 13, 2017. 

 

WITNESSETH:

 

WHEREAS, the Parties desire to make certain modifications to the Agreement as set forth in this Amendment in order to further the intent of the Parties;

 

WHEREAS, in accordance with Section 11.03 of the Agreement, the terms of this Amendment have been agreed by the Parties; and

 

WHEREAS, capitalized terms used but not otherwise defined herein have the meanings given to such terms in the Agreement.

 

NOW, THEREFORE, the Agreement is hereby amended on the terms set forth in this Amendment:

 

Section 1.Amendments.

	
(a)
	
Section 1.01 of the Agreement is hereby amended by amending and restating the following definitions to read as follows:

“Distribution Ratio” shall mean, as of any time, the quotient obtained by dividing (a) the number of shares of Newmark Common Stock held by BGC Partners as of such time (including all shares of Newmark Common Stock that would be held by BGC Partners if (i) all Newmark Opco Units and Newmark Holdings Exchange Right Units held by a Subsidiary of BGC Partners were distributed to BGC Partners in accordance with BGC Partners’ proportionate interest in such Subsidiary as of such time and (ii) all Newmark Opco Units and Newmark Holdings Exchange Right Units held by BGC Partners as of such time (after giving effect to clause (i)) were exchanged for shares of Newmark Common Stock pursuant to the terms of this Agreement and the Newmark Holdings 

 

 

Limited Partnership Agreement), divided by (b) the number of shares of BGC Partners Common Stock outstanding as of such time. (it being agreed that (A) if the number of outstanding shares of Newmark Common Stock, Newmark Opco Units, Newmark Holdings Exchange Right Units or BGC Partners Common Stock is changed into a different number of shares or a different class, by reason of any dividend, distribution, subdivision, combination, reclassification, consolidation, merger, split-up, combination or the like, BGC Partners shall have the right to make any appropriate equitable adjustment to the calculation of the Distribution Ratio to preserve the same economic effect as contemplated by this Agreement prior to such action, and (B) BGC Partners shall update the calculation of the Distribution Ratio no less frequently than quarterly). 

	
(b)
	
Section 6.12(a) of the Agreement is hereby amended and restated to read as follows:

(a)In light of the fact that, after the Closing and prior to the Distribution, the Partnership Divisions shall have occurred but the Distribution shall not have occurred, the Parties agree that Section 4.11(a)(i) and Section 4.11(a)(iii) of the Separation Agreement, dated as of March 31, 2008, by and among Cantor, BGC Partners, BGC U.S. Opco, BGC Global Opco and BGC Holdings, shall be amended to provide as follows solely for the period of time following the Closing and prior to the Distribution (and any capitalized terms used but not defined in such Section 4.11(a)(i) and Section 4.11(a)(iii), as hereby amended, shall have the meanings set forth in this Agreement):

(i)Mandatory Reinvestment by BGC Partners.  In the event of any issuance of shares of BGC Partners Common Stock (including any issuance in connection with a merger or other acquisition by BGC Partners, but excluding any issuance of shares of BGC Partners Common Stock upon exchange of a combination of BGC Holdings Exchangeable Limited Partnership Interests and Newmark Holdings Exchangeable Limited Partner Interests as set forth in the BGC Holdings Limited Partnership Agreement), unless otherwise determined by the BGC Partners Board, BGC Partners shall contribute, directly or indirectly through its Subsidiaries, the net proceeds or other property received in respect of such issuance to either of the following (as determined by BGC Partners): (x) the BGC Opcos and Newmark Opco or (y) the BGC Opcos.  

(A)In case of clause (x) of Section 6.12(a), in exchange for such contributions: (A) BGC U.S. Opco shall issue to BGC Partners a BGC U.S. Opco Limited Partnership Interest consisting of a number of BGC U.S. Opco Units equal to (1) the number of additional shares of BGC Partners Common Stock so issued multiplied by (2) the BGC Partners Ratio as of immediately prior to the issuance of such shares of BGC Partners Common Stock; (B) BGC Global Opco shall issue to BGC Partners a BGC Global Opco Limited Partnership Interest consisting of a number of BGC Global Opco Units equal to (1) the number of additional shares of BGC Partners Common Stock so issued multiplied by (2) the BGC Partners Ratio as of immediately prior to the issuance of such shares of BGC Partners Common Stock; and (C) Newmark Opco shall issue to BGC Partners a Newmark Opco Limited Partnership Interest consisting of a number of Newmark Opco Units equal to (x) the number of additional 

 

 

 

shares of BGC Partners Common Stock so issued divided by (y) the Exchange Ratio as of immediately prior to the issuance of such shares of BGC Partners Common Stock multiplied by (z) the Distribution Ratio as of immediately prior to the issuance of such shares of BGC Partners Common Stock.  The amount of the net proceeds or other property that shall be contributed by BGC Partners to Newmark Opco pursuant to the foregoing shall be equal to the Newmark Per Unit Price multiplied by the number of Newmark Opco Units issued to BGC Partners (it being understood that the BGC Partners Board shall have the right to make any equitable adjustment to the amount contributed to Newmark Opco, on the one hand, and the BGC Opcos, on the other hand, if any event shall occur that shall warrant such adjustment).  The remainder of the net proceeds or other property shall be contributed by BGC Partners to the BGC Opcos.

(B)In case of clause (y) of Section 6.12(a), in exchange for such contribution: (A) BGC U.S. Opco shall issue to BGC Partners a BGC U.S. Opco Limited Partnership Interest consisting of a number of BGC U.S. Opco Units equal to (1) the number of additional shares of BGC Partners Common Stock so issued multiplied by (2) the BGC Partners Ratio as of immediately prior to the issuance of such shares of BGC Partners Common Stock; (B) BGC Global Opco shall issue to BGC Partners a BGC Global Opco Limited Partnership Interest consisting of a number of BGC Global Opco Units equal to (1) the number of additional shares of BGC Partners Common Stock so issued multiplied by (2) the BGC Partners Ratio as of immediately prior to the issuance of such shares of BGC Partners Common Stock; and (C) BGC U.S. Opco and/or BGC Global Opco or their applicable Subsidiaries shall provide to BGC Partners a Newmark Opco Limited Partnership Interest and/or a Newmark Holdings Limited Partnership Interest consisting of a number of Newmark Opco Units or Newmark Holdings Units equal to (w) the number of additional shares of BGC Partners Common Stock so issued divided by (x) the Exchange Ratio as of immediately prior to the issuance of such shares of BGC Partners Common Stock multiplied by (y) the Distribution Ratio as of immediately prior to the issuance of such shares of BGC Partners Common Stock and (z) in the case of Newmark Holdings Units, multiplied by the Newmark Holdings Ratio as of immediately prior to the issuance of such shares of BGC Partners Common Stock.  

(ii)Voluntary Reinvestment by BGC Partners.  BGC Partners (with the consent of the BGC Partners Board) may elect to have a member of the BGC Partners Inc. Group purchase from the BGC Opcos an equal number of BGC U.S. Opco Units and BGC Global Opco Units for a price equal to the BGC Per Unit Price for each set of one BGC U.S. Opco Unit and one BGC Global Opco Unit.  If BGC Partners or any member of the BGC Partners Inc. Group exercises such right, unless otherwise determined by the BGC Partners Board, BGC Partners or the member of the BGC Partners Inc. Group exercising such right shall also purchase a number of Newmark Opco Units equal to (A) the number of BGC U.S. Opco Units that it purchased pursuant to the prior sentence multiplied by (B) the Distribution Ratio as of immediately prior to such purchase, 

 

 

 

divided by (C) the Exchange Ratio, for a price per Newmark Opco Unit equal to the Newmark Per Unit Price.   Such member of the BGC Partners Inc. Group may use cash and/or other assets to make such purchases.  In the event that non-cash consideration is used to make such purchases, the value of the aggregate non-cash consideration shall be determined in good faith by the general partner of BGC U.S. Opco, the general partner of BGC Global Opco and the general partner of Newmark Opco, as the case may be, taking into account, if relevant, the acquisition cost thereof.  

(iii)Forfeiture of BGC Partners Common Stock.  In the event that any Person forefeits any restricted shares of BGC Partners Common Stock that is outstanding (a “Forfeited Share”), then BGC Partners shall deliver to: (A) BGC U.S. Opco a number of BGC U.S. Opco Units equal to (1) the number of Forfeited Shares multiplied by (2) the BGC Partners Ratio as of immediately prior to such forfeiture; (B) BGC Global Opco a number of BGC Global Opco Units equal to (1) the number of Forfeited Shares multiplied by (2) the BGC Partners Ratio as of immediately prior to such forfeiture; and (C) Newmark Opco a number of Newmark Opco Units equal to (1) the number of Forfeited Shares divided by (2) the Exchange Ratio as of immediately prior to such forfeiture multiplied by (3) the Distribution Ratio as of immediatley prior to such forfeiture. 

	
(c)
	
Section 6.11(e) of the Agreement is hereby amended and restated to read as follows:

(e) BGC Partners Contribution of Newmark Opco Units Prior to the Distribution. Prior to the Distribution, (i) to the extent that any of the BGC Opcos holds any Newmark Opco Units or Newmark Holdings Units, the BGC Opcos shall distribute such Newmark Opco Units and Newmark Holdings Units to their equityholders; and (ii) to the extent that BGC Partners holds any Newmark Opco Units or Newmark Holdings Units, including as a result of the distribution described in the foregoing clause (i), as a result of any exchange of Newmark Holdings Units pursuant to the BGC Holdings Limited Partnership Agreement, as a result of any contribution or purchase by BGC Partners pursuant to Section 6.12(a) or otherwise, then, in each case, BGC Partners will contribute such Newmark Opco Units (including any Newmark Opco Units underlying such Newmark Holdings Units) to Newmark in exchange for a number of newly issued shares of Newmark Common Stock equal to the number of Newmark Opco Units (including any Newmark Opco Units underlying such Newmark Holdings Units) being contributed multiplied by the Exchange Ratio.

	
(d)
	
The matters set forth on Annex A hereto are expressly agreed and are deemed incorporated into, and made a part of, the Agreement. 

	
(e)
	
Section 6.14(b) of the Agreement is hereby amended and restated to read as follows:

(b)Adjustment for Reinvestment Cash. Subject to the last sentence of this Section 6.14(b), if, in any fiscal quarter, there is Reinvestment Cash for such fiscal quarter, then, the Exchange Ratio will be adjusted so that, following such adjustment, but subject to any other further adjustment as a result of Section 6.14(c), the Exchange Ratio 

 

 

 

shall equal (i) the number of outstanding shares of Newmark Common Stock as of immediately prior to such adjustment, divided by (ii) the sum of (A) the number of outstanding shares of Newmark Common Stock as of immediately prior to such adjustment, plus (B) the Adjustment Factor for such fiscal quarter plus (C) the sum of the aggregate Adjustment Factors for all prior fiscal quarters following the IPO.  Newmark shall determine the particular date in which any adjustment to the Exchange Ratio in respect of a particular fiscal quarter shall occur, taking into account the precise timing of any distributions by Newmark Holdings and Newmark in respect of such fiscal quarter. Newmark shall adjust the Exchange Ratio for Reinvestment Cash in respect of any particular fiscal quarter by no later than the day prior to the record date for (A) the distribution from Newmark Holdings to its equityholders for such fiscal quarter or (B) the dividend from Newmark to its stockholders for such fiscal quarter, whichever occurs later.  The adjustment to the Exchange Ratio shall be based on Newmark’s calculation of the Reinvestment Cash for such fiscal quarter as of the date of such adjustment, which calculation, in turn, shall be based on (1) the aggregate distributions that have and will be made from Newmark Opco to Newmark for such fiscal quarter, (2) the aggregate distributions that have and will be made from Newmark Opco to Newmark Holdings for such fiscal quarter, (3) the aggregate distributions that have and will be made from Newmark Holdings to its equityholders for such fiscal quarter, and (4) the aggregate dividends that have and will be made from Newmark to its stockholders for such fiscal quarter.

Section 2.Construction.  Except as expressly amended hereby, the Agreement shall remain in full force and effect and all other terms of the Agreement remain unchanged.

Section 3.Counterparts.  This Amendment may be executed in one or more counterparts, all of which shall be considered one and the same agreement.

 

[signature page follows]

 

 

 

IN WITNESS WHEREOF, this Amendment has been duly executed on November 8, 2018.

 

BGC PARTNERS, INC.

	
 
	
By:
	
/S/ HOWARD W. LUTNICK
 Name: Howard W. Lutnick
 Title: Chief Executive Officer

BGC HOLDINGS, L.P.

	
 
	
By:
	
BGC GP, LLC
its General Partner

	
 
	
By:
	
/S/ HOWARD W. LUTNICK
 Name: Howard W. Lutnick
 Title: Chief Executive Officer

BGC PARTNERS, L.P.

	
 
	
By:
	
BGC Holdings, LLC
its General Partner

	
 
	
By:
	
/S/ HOWARD W. LUTNICK
 Name: Howard W. Lutnick
 Title: Chief Executive Officer

 

 

 

 

 

 

 

 

NEWMARK GROUP, INC.

	
 
	
By:
	
/S/ HOWARD W. LUTNICK
 Name: Howard W. Lutnick
 Title: Chairman

NEWMARK HOLDINGS, L.P.

	
 
	
By:
	
Newmark GP, LLC
its General Partner

	
 
	
By:
	
/S/ HOWARD W. LUTNICK
 Name: Howard W. Lutnick
 Title: Chairman

NEWMARK PARTNERS, L.P.

	
 
	
By:
	
Newmark Holdings, LLC
its General Partner

	
 
	
By:
	
/S/ HOWARD W. LUTNICK
 Name: Howard W. Lutnick
 Title: Chairman

 

 

CANTOR FITZGERALD, L.P.

	
 
	
By:
	
CF Group Management, Inc.
its Managing General Partner

	
 
	
By:
	
/S/ HOWARD W. LUTNICK
Name: Howard W. Lutnick
Title: Chief Executive Officer

BGC GLOBAL HOLDINGS, L.P.

	
 
	
By:
	
BGC Global Holdings GP Limited
its Managing Partner

	
 
	
By:
	
/S/ HOWARD W. LUTNICK
Name: Howard W. Lutnick
Title: Chief Executive Officer

 

 

ANNEX A

 

 

		
		
	
Potential Issuances with Respect to Terminated Partners
	
For purposes of calculating the number of Newmark Holdings Units issued in the Partnership Division, the Parties had included 5,502,803 BGC Holdings Units in respect of Terminated Founding/Working Partners (each as defined in the BGC Holdings Limited Partnership Agreement) of BGC Holdings.   These 5,502,803 BGC Holdings Units should have been excluded from the Unit count of BGC Holdings as of the Partnership Division, including for purposes of calculating the number of Newmark Holdings Units that were issued in the Partnership Division.

 

The 5,502,803 BGC Holdings Units should have been excluded because, as set forth in the BGC Holdings Partnership Agreement, these 5,502,803 BGC Holdings Units were automatically re-acquired by BGC Holdings upon Termination of the applicable Founding/Working Partners, and the BGC Opcos similarly reacquired from BGC Holdings an equivalent number of BGC U.S. Opco Units and BGC Global Opco Units.

 

The Parties had included 5,502,803 shares of BGC Partners Common Stock (the “Terminated Partner Shares”) in the “fully diluted share count” of BGC Partners as of the Partnership Division because it is possible that, at a future date, such number of shares of BGC Partners Common Stock could be issued to the terminated partners pursuant to their respective separation agreements.  The Parties had also included 2,501,274 shares of Newmark Common Stock (which is equal to 5,502,803 divided by 2.2) in the “fully diluted share count of Newmark as of the Partnership Division because, if such Terminated Partner Shares are issued, then Newmark would issue such number of shares of Newmark Common Stock to either (1) BGC Partners, if such issuance occurred prior to the Distribution (i.e., the spin-off) or (2) the terminated partner, if such issuance occurred after the Distribution.

 

Consistent with intent of the parties as set forth in the IPO Registration Statement, the Parties therefore agree that, unless they subsequently determine otherwise:

 

•5,502,803 BGC Holdings Units shall be removed from the BGC Holdings outstanding unit count as of the Partnership Division;

 

•If BGC Partners issues any Terminated Partner Share pursuant to any separation agreement or otherwise to such terminated partner prior to the Distribution (i.e., the spin-off), then:

 

oEach BGC Opco shall issue one BGC U.S. Opco Unit and one BGC Global Opco Unit, as the case may be, to BGC Partners for each such Terminated Partner Share; and 

 

oNewmark Opco shall issue to BGC Partners a number of Newmark Opco Units equal to (i) the Distribution Ratio as of immediately prior to such issuance, divided by (ii) the Exchange Ratio as of immediately prior to such issuance, for each such Terminated Partner Share.

 

•If BGC Partners issues any Terminated Partner Share pursuant to any separation agreement or otherwise to such terminated partner after the Distribution (i.e., the spin-off), then:

 

 

 

 

oEach BGC Opco shall issue one BGC U.S. Opco Unit and one BGC Global Opco Unit, as the case may be, to BGC Partners for each such Terminated Partner Share; and 

 

oNewmark shall be responsible for issuing to the Terminated Partner any shares of Newmark Common Stock to which the Terminated Partner is entitled (e.g., which may be equal to the number of Terminated Partner Shares multiplied by the Distribution Ratio as of the Record Date for the Distribution).  

 

▪Newmark Opco shall issue to Newmark a number of Newmark Opco Units equal to the number of shares of Newmark Common Stock provided to such recipient, divided by the Exchange Ratio as of immediately prior to such issuance. 

 

	
Potential Issuances of BGC Partners Shares Included in Fully Diluted Share Count as of Partnership Division 

 
	
If, as of immediately prior to the Partnership Division, BGC Partners had an obligation (contingent or otherwise) to issue or deliver, or otherwise earmarked for potential issuance or delivery, shares of BGC Partners Common Stock following the Partnership Division (including the Terminated Partner Shares described above), and such shares of BGC Partners Common Stock were included in the fully diluted share count of BGC Partners as of the Partnership Division that was included in the IPO prospectus, then the obligations of the BGC Opcos, on the one hand, and Newmark Opco, on the other hand, if any of such shares of BGC Partners Common Stock are delivered shall be the same as above with respect to terminated partners whose units were included in the fully diluted share count of BGC Partners as of the Partnership Division.

 

 

		

 

 

		
	
Potential Issuances of BGC Partners Shares Not Included in Fully Diluted Share Count as of Partnership Division 

 
	
If, prior to the Distribution (i.e., the spin-off), BGC Partners had an obligation (contingent or otherwise) to issue or deliver, or otherwise earmarked for potential issuance or delivery, shares of BGC Partners Common Stock following the Partnership Division, and such shares of BGC Partners Common Stock were not included in the fully diluted share count of BGC Partners as of the Partnership Division that was included in the IPO prospectus, then the BGC Opcos shall be responsible for obligations related to the financial services business, and Newmark Opco shall be responsible for obligations related to the real estate services business.  If BGC Partners issues or delivers any such share of BGC Partners Common Stock after the Partnership Division (each, an “Issued BGC Share”), then, unless otherwise agreed between BGC Partners and Newmark, the following shall apply: 

 

I.  Issuances Prior to the Distribution

 

A.   Financial Services Obligation

 

▪If the Issued BGC Share was issued or delivered prior to the Distribution (i.e., the spin-off) and was provided in satisfaction of an obligation of the financial services business, then:

 

oEach BGC Opco shall issue one BGC U.S. Opco Unit and one BGC Global Opco Unit, as the case may be, to BGC Partners for each Issued BGC Share; and 

 

oThe BGC Opcos shall deliver to BGC Partners a number of Newmark Opco Units (or Newmark Holdings Units) equal to (i) the Distribution Ratio as of immediately prior to such issuance, divided by (ii) the Exchange Ratio as of immediately prior to such issuance, for each Issued BGC Share.

 

•As an alternative to BGC Opco delivering Newmark Opco or Newmark Holdings Units to BGC Partners pursuant to the prior bullet, BGC Partners may purchase (a) from Newmark Opco a number of Newmark Opco Units equal to (i) the Distribution Ratio as of immediately prior to such issuance, divided by (ii) the Exchange Ratio as of immediately prior to such issuance, for each share of BGC Partners Common Stock so issued, (b) from Newmark Holdings a number of Newmark Holdings Units equal to (i) the Distribution Ratio as of immediately prior to such issuance, divided by (ii) the Exchange Ratio as of immediately prior to such issuance, for each share of BGC Partners Common Stock so issued and/or (c) from Newmark a number of shares of Newmark Common Stock equal to the Distribution Ratio as of immediately prior to such issuance, for each share of BGC Partners Common Stock so issued, in each case using the Newmark Current Market Price or Newmark Per Unit Price as of immediately prior to such issuance for purposes of calculating the value of such share or unit, respectively (it being understood that the parties could also determine to use the closing price of Newmark Class A Common Stock as of immediately prior to such issuance for purposes of determining such values).

 

B.   Real Estate Obligation

 

▪If the Issued BGC Share was issued or delivered prior to the Distribution (i.e., the spin-off) and was provided in satisfaction of an obligation of the real estate business, then:

 

▪Newmark Opco shall issue to BGC Partners a number of Newmark Opco Units (and/or Newmark shall issue to BGC Partners a number of Newmark Common Stock and/or Newmark Holdings shall issue to BGC Partners a number of Newmark Holdings Units) that maintains the Distribution Ratio as of immediately prior to such issuance; and 

 

▪Newmark Opco shall pay to BGC Partners an amount of cash equal to the number of Issued BGC Shares multiplied by the BGC Per Unit Price as of immediately prior to such issuance (it being understood that the parties could also determine to use the closing price of BGC Class A Common Stock and Newmark Class A Common Stock as of immediately prior to such issuance for purposes of determining the BGC Per Unit Price as of immediately prior to such issuance).

 

▪As an alternative to Newmark Opco paying to BGC Partners cash pursuant to the prior bullet, Newmark Opco may issue to BGC Partners a number of Newmark Opco Units equal to (a) the number of Issued BGC Shares multiplied by (b) the BGC Per Unit Price as of immediately prior to such issuance divided by (c) the Newmark Per Unit Price as of immediately prior to such issuance (it being understood that the parties could also determine to use the closing price of BGC Class A Common Stock and Newmark Class A Common Stock as of immediately prior to such issuance for purposes of determining the BGC Per Unit Price and the Newmark Per Unit Price as of immediately prior to such issuance). 

 

II.  Issuances After the Distribution

 

A.   Financial Services Obligation

 

▪If the Issued BGC Share was issued or delivered after the Distribution (i.e., the spin-off) and was provided in satisfaction of an obligation of the financial services business, then: 

 

▪In addition to the Issued BGC Shares that the recipient would have received prior to the Distribution, BGC Partners shall issue additional shares of BGC Partners Common Stock and/or pay cash to the recipient, as it determines in its sole discretion, as compensation for the reduction in value of the BGC Partners Common Stock resulting from the Distribution. 

 

▪Each BGC Opco shall issue one BGC U.S. Opco Unit and one BGC Global Opco Unit, as the case may be, to BGC Partners for each share of BGC Partners Common Stock issued to the recipient. 

 

B.   Real Estate Obligation

 

▪If the Issued BGC Share was issued or delivered after the Distribution (i.e., the spin-off) and was provided in satisfaction of an obligation of the real estate business, then: 

▪Newmark Opco shall pay to BGC Partners an amount of cash equal to the number of Issued BGC Shares multiplied by the BGC Current Market Price as of immediately prior to such issuance (it being understood that the parties could also determine to use the closing price of BGC Class A Common Stock as of immediately prior to such issuance for purposes of determining such values); and

•Newmark shall be responsible for issuing to the recipient any shares of Newmark Common Stock to which the recipient is entitled (e.g., which may be equal to the number of Issued BGC Shares multiplied by the Distribution Ratio as of the Record Date for the Distribution).  

 

▪Newmark Opco shall issue to Newmark a number of Newmark Opco Units equal to the number of shares of Newmark Common Stock provided to such recipient, divided by the Exchange Ratio as of immediately prior to such issuance.

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