Document:

Exhibit 10.3

 

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

 

This AMENDED AND RESTATED EMPLOYMENT AGREEMENT (“Agreement”), dated as of April 30, 2015 (the “Effective Date”), is entered into by and between BGC Partners, L.P., a Delaware limited partnership (“BGC”), GFI Group Inc., a Delaware corporation (together with its successors and assigns, “GFI” or the “Company”), and Colin Heffron, an individual (“Executive”) (BGC, GFI and Executive collectively referred to herein as the “Parties”).

 

WHEREAS, Executive is currently employed by the Company pursuant to an Employment Agreement dated as of April 30, 2007, as amended by that certain Amendment No. 1 to Employment Agreement dated December 31, 2008 (as amended, the “Prior Agreement”); and

 

WHEREAS, BGC and the Company have entered into a Tender Offer Agreement, dated as of February 19, 2015 (the “Tender Offer Agreement”) pursuant to which the parties thereto have agreed to make certain representations, warranties, covenants and agreements in connection with BGC’s cash tender offer to purchase all of the outstanding shares of common stock of the Company (the “Offer”); and

 

WHEREAS, the Parties desire to enter into this Agreement to set out the terms and conditions for the continued employment relationship of Executive with the Company after the acceptance for payment of shares of the Company’s common stock pursuant to and subject to the terms of the Offer upon expiration of the Offer (the “Offer Closing”); and

 

WHEREAS, the Parties agree that, as of the Effective Date (as defined below), this Agreement shall supersede and replace the Prior Agreement.

 

NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein and for other good and valuable consideration, the receipt and sufficiency of which hereby are acknowledged, the Parties hereto agree as follows:

 

1.                                    Nature of Employment.

 

(a)        The Company hereby agrees to continue to employ Executive as a full-time employee in the position of CEO of the GFI Brand (as defined below) and Executive accepts such continued employment, on the terms and conditions set forth in this Agreement, for the Term (as defined in Section 2 below) of this Agreement.  Throughout the Term, Executive will be responsible for globally managing the GFI Brand and such senior executives globally as directed or designated, respectively, by Shaun Lynn (or his successor or designee) with a focus on the business of the GFI Brand, will ultimately report to Shaun Lynn (or his successor or designee), and will perform and discharge well and faithfully such duties and functions as may be assigned to him from time to time by Shaun Lynn (or his successor or designee) in his discretion in connection with the conduct of the Company’s and BGC’s business, including with respect to any Affiliate (as defined below).  Executive shall have such authority as granted to him by the then-Chairman of BGC (or his designee). If Executive is elected or appointed an officer or director of the Company or any of its Affiliates during the period of Executive’s employment with the Company, Executive will serve in such capacity without additional compensation.  For purposes of this Agreement, “GFI Brand” means, as applicable, (i) the inter-dealer brokerage business, as conducted by the Company and its subsidiaries (the “IDB Business”), or (ii) the IDB Business, operating as a GFI-branded division of either BGC or an Affiliate of BGC.

 

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(b)        From the Effective Date through the closing of the Back-End Mergers pursuant to Section 5.16 of the Tender Offer Agreement, Executive agrees to serve as a director of the Company, provided that if the Election (as defined in the Tender Offer Agreement) is not made by the expiration of the Election Period (as defined in the Tender Offer Agreement), Executive shall immediately resign his position as director of the Company.

 

(c)        During the period of Executive’s employment with the Company, Executive:  (i) will devote 100% of his employment energies, interests, abilities and time to the performance of his duties and shall not, without the written consent of Shaun Lynn (or his successor or designee), render to others any service of any kind for compensation; (ii) will not render services to any business activity that is directly or indirectly competitive with any business conducted by the Company, BGC or any of their respective Affiliates; (iii) will observe and carry out such rules, regulations, policies, directions and restrictions as may be established from time to time by the Company, including but not limited to the policies, practices and procedures of the Company as in effect from time to time; (iv) will promote the best interests of the Company, BGC and their respective Affiliates, and will not, either during or outside of normal business hours, directly or indirectly, engage in any activity inimical to such best interests; and (v) will do such traveling as may be reasonably required in connection with the performance of such duties and responsibilities consistent with such traveling requirements prior to the execution of this Agreement and/or as appropriate as CEO of the GFI Brand.

 

(d)        Executive may serve on corporate, civic and/or charitable boards with the consent of Shaun Lynn (or his successor or designee), provided that Shaun Lynn (or his successor or designee) may require Executive to resign any or all such board seats if he reasonably believes such board participation conflicts with Executive’s role with the Company, BGC or any of their respective Affiliates or is otherwise too time-consuming or distracting to Executive.

 

(e)        Executive acknowledges that this Agreement contains restrictive covenants, and Executive agrees to comply with these provisions.  Executive understands that entering into and complying with these provisions is a condition to Executive’s continued employment and that failure to comply with the restrictive covenants may result in termination for Cause under this Agreement pursuant to Section 10 and in other harm and damages to the Company, BGC and any of their respective Affiliates.

 

2.                                    Term of Employment.

 

The term of this Agreement shall commence on the Effective Date and shall continue through October 1, 2018 (or such later date as may be mutually agreed by the Parties in writing, which writing must be signed by an authorized officer of the Company and BGC), subject to reduction to the extent earlier terminated as specified in Section 10 below (such period referred to herein as the “Term”).

 

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3.                                    Compensation and Benefits.

 

For the full and faithful performance of the services to be rendered by Executive and in consideration of Executive’s obligations under this Agreement, provided Executive is not in breach of this Agreement, the Company shall pay to Executive and Executive shall be entitled to receive:

 

(a)                               Base Compensation.  As compensation for his services to be rendered hereunder, during the Term and retroactive to April 1, 2015, the Company shall pay to Executive a base salary at the rate of $1,000,000 per annum (the “Base Salary”), prorated for any partial year of service, which shall be payable in periodic installments in accordance with the standard payroll practices of the Company in effect from time to time, provided, however, that if, by reason of disability, Executive is incapable of performing his normal duties and responsibilities hereunder, with or without a reasonable accommodation, for a period in excess of any ninety (90) calendar days during any twelve (12) month period, then the Company shall have no obligation to pay Executive the Base Salary for the period, in excess of such ninety (90) calendar days, during which Executive is incapable of performing his normal duties and responsibilities hereunder. The Company will provide Executive with a catch-up payment in an amount equal to the difference between (i) the Base Salary payments Executive would have received had he been paid at the rate set forth in this Section 3(a) during the period commencing on April 1, 2015 and ending on the Effective Date and (ii) the actual salary payments made to Executive during such period, payable in a lump sum on a regular payroll date as soon as practicable following the Effective Date.

 

(b)                              Bonus.  From the Effective Date through October 1, 2018, the Company shall pay Executive a bonus of $1,500,000 (the “Bonus”) per fiscal year of BGC Partners, Inc. (“BGCP”), prorated for any partial fiscal year of service, which Bonus shall (to the extent that, at the time of payment of such Bonus, Executive could reasonably be expected to be a “covered employee” as defined under Section 162(m) of the Code) be determined and payable under any then applicable incentive plan in a manner intended to cause such Bonus to constitute “performance-based compensation” within the meaning of Section 162(m) of the Code. Any Bonus payment as provided in the preceding sentence shall be paid (i) entirely in cash if Distributable Earnings (as defined in the Tender Offer Agreement) for the corresponding Earnings Period (as defined in the Tender Offer Agreement) is less than $45,000,000, or (ii) two-thirds in cash and one-third in the form of partnership equity (such one-third, the “Annual Equity Award”) if Distributable Earnings  for the corresponding Earnings Period is equal to or greater than $45,000,000.  Each Annual Equity Award, if any, will be made in the form of a combination of REUs and PREUs having a combined aggregate Post-Termination Amount (as defined in the Agreement of Limited Partnership of BGC Holdings, L.P. (“BGCHLP”) amended and restated as of March 31, 2008, as amended from time to time (the “BGC Partnership Agreement”)) equal to $500,000 on an annualized basis (which will be prorated in the event of any partial fiscal year), as determined and administered in accordance with the then-current practices of BGCP. The ratio of REUs to PREUs in each award shall be consistent with the then-current ratio in which equity units are distributed to BGC’s senior executives based in the U.S.  Each Annual Equity Award, if any, shall be fully vested on issuance.  Such Annual Equity Awards, if any, shall only be forfeitable if Executive violates the Covenants (as defined below). Receipt by Executive of each Annual Equity Award (if any) shall be subject to the terms of the BGC Partnership Agreement and the BGCHLP Participation Plan, as amended from time to time, and any applicable award agreement thereunder, which shall be generally consistent with the terms of regular compensatory awards of the same partnership unit types, except as specifically provided in this Section 3(b). 

 

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Notwithstanding anything to the contrary above, if, by reason of disability, Executive is incapable of performing his normal duties and responsibilities hereunder, with or without a reasonable accommodation, for a period in excess of any ninety (90) calendar days during any twelve (12) month period, then the Company may reduce the Bonus pro-rata based on the period, in excess of such ninety (90) calendar days, during which Executive is incapable of performing his normal duties and responsibilities hereunder.

 

(c)                               Discretionary Bonus.  The Company may pay Executive a discretionary bonus, in such an amount, on such terms and at such time as may be determined by the Company in its sole and absolute discretion (the “Discretionary Bonus”), it being specifically understood that the Discretionary Bonus, if any, shall be paid in non-cash and/or such other form of equity as determined by the Company in its sole and absolute discretion, provided that if Executive’s total aggregate compensation for any given year (including his Base Salary, Bonus and Discretionary Bonus) is greater than $2,500,000 in the aggregate, Executive will receive 25% of his total annual compensation in the form of equity awards in BGC or any of its Affiliates (except in such cases where such percentage needs to be less than 25% so that the total annual compensation is the same but Executive still receives at least $2,000,000 of Executive’s total annual compensation in cash). For avoidance of doubt, any DE Bonus paid to Executive pursuant to the Non-Competition and DE Bonus Award Agreement to be entered into between Executive and BGC Partners, Inc. (the “DE Bonus Award Agreement”) and any consideration paid to Executive in connection with the Back-End Mergers pursuant to Section 5.16 of the Tender Offer Agreement shall not be considered for purposes of determining whether Executive’s total aggregate annual compensation is greater than $2,500,000 for purposes of this Section 3(c).

 

(d)                             Fringe Benefits.  During the Term, the Company shall also make available to Executive the following benefits and perquisites: (i) payment for the costs of Executive’s dedicated car and driver on terms substantially similar to those in place on the date hereof, (ii) access to use of the Company’s then-current corporate apartment in New York, New York that may be made available to other GFI executives from time to time, (iii) continued use of his current or another suitable office located in New York, New York, and (iv) a full-time personal secretary, in each case consistent with his current arrangements, provided, however, that the Company shall not have to pay costs of Executive’s dedicated car and driver in excess of $135,000 in any calendar year of the Term, and further provided that if, by reason of disability, Executive is incapable of performing his normal duties and responsibilities hereunder, with or without a reasonable accommodation, for a period in excess of any ninety (90) calendar days during any twelve (12) month period, then the Company shall have no obligation to provide the benefits and perquisites set forth in clauses (i) through (iv) for the period, in excess of such ninety (90) calendar days, during which Executive is incapable of performing his normal duties and responsibilities hereunder.  Executive shall further be entitled to paid vacation, holidays, personal days and sick days in accordance with the Company’s standard policies and procedures in effect from time to time; provided, however, Executive shall be entitled to four weeks of vacation per year; and further provided that nothing herein contained shall be deemed to require the Company to adopt, maintain or continue in effect any particular plan, policy or procedure.

 

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(e)                               Expenses.  During the Term, the Company shall reimburse Executive in accordance with applicable Company policy in effect from time to time, for normal, reasonable and approved out-of-pocket business expenses incurred by Executive in connection with the performance of his duties and responsibilities hereunder; provided that Executive submits documentation reasonably required by Company expense reimbursement policies and procedures in effect and as amended from time to time.

 

(f)                                Withholding.  All amounts of compensation payable to Executive under this Agreement shall be subject to, and paid after reduction for, any and all required deductions or withholdings for federal, state, local and foreign income tax withholding, Social Security, Medicare, unemployment or other similar government benefit or insurance contributions, and any other deductions or withholdings required by law or authorized by Executive.

 

4.                                    Assignment of Inventions and Intellectual Property.

 

(a)                               The term “Proprietary Rights” means all trade secrets, trademarks, service marks, patents, copyrights, mask works and other intellectual property rights throughout the world.  The term “Inventions” means all Proprietary Rights, inventions, ideas, processes, formulas, source and object codes, data, programs, technology, writings, software programs, other works of authorship, know-how, discoveries, developments, designs, schematics, manuals, drawings, techniques, employee suggestions, development tools, computer printouts, or any claim of rights (or any related improvements or modifications to the foregoing).

 

(b)                              Subject to Sections 4(c) and 4(d), Executive hereby assigns and agrees to assign in the future (when any such Invention or Proprietary Right is first reduced to practice or first fixed in a tangible medium, as applicable) to the Company, BGC or any of their respective Affiliates, as applicable, all right, title and interest in and to any and all Inventions (and all Proprietary Rights with respect thereto) whether or not patentable or registrable under copyright or similar statutes, made or conceived or reduced to practice or learned by Executive, either alone or jointly with others, during or at any time after the period of employment with the Company, which (i) relate to methods, designs, brokerage or other products, trading systems and screens or any other processes which relate to or pertain to the actual or anticipated business, functions, operations, research or development of the Company, BGC or any of their respective Affiliates, (ii) arise (wholly or partly) from Executive’s efforts during any time that Executive is employed by the Company or utilizing any physical or intellectual property owned by the Company, BGC or any of their respective Affiliates, or (iii) is based on any information or knowledge gained by Executive through his employment with the Company.  Inventions assigned to the Company, or to a third party as directed by the Company pursuant to this Section, are hereinafter referred to as “Company Inventions.”

 

(c)          During Executive’s period of employment, and for twelve (12) months thereafter, Executive will promptly disclose to the Company, fully and in writing, all Inventions authored, conceived or reduced to practice by Executive, either alone or jointly with others.  In addition, Executive will promptly disclose to the Company all patent applications filed by Executive or on his behalf within twelve (12) months after termination of employment.

 

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(d)          Executive also agrees to assign all right, title and interest in and to any particular Company Invention to a third party as directed by the Company.

 

(e)          Executive acknowledges that all original works of authorship which are made by Executive (solely or jointly with others) within the scope of his employment with the Company and which may be protected by copyright are “works made for hire”, pursuant to United States Copyright Act (17 U.S.C. Section 101) and are the property of the Company, BGC or any of their respective Affiliates, as applicable, without limitation which shall own all rights of copyright therein including the sole and exclusive right to reproduce such works in multiple copies of distribution or sale to the public and to create and exploit derivative works based thereon.

 

(f)          Executive will execute, verify and deliver assignments of such Proprietary Rights to the Company or its designee.  Executive’s obligation to assist the Company with respect to Proprietary Rights relating to such Company Inventions in any and all countries will continue beyond the termination of employment. To the extent the Company requests Executive’s assistance after the termination of his employment, the Company shall, to the extent possible, reasonably consider Executive’s material pre-exiting scheduling commitments in connection with such request.

 

5.                                    Restrictive Covenants.

 

(a)                               General. Executive covenants and agrees that he shall not, at all times while employed by the Company, BGC, BGCP or any of their Affiliates (collectively, the “BGCP Group”) and for a period immediately following the termination of Executive’s employment for any reason lasting for the longer of seven (7) years after the termination of Executive’s employment or through October 1, 2025 (collectively, the “Restricted Period”), directly or indirectly, alone or by action in concert with others (including with or through any Representative):

 

(i)                                  solicit, induce, or influence, or attempt to solicit, induce or influence, any partner, employee or consultant of BGCP or any of its Affiliates (which, for avoidance of doubt, include, without limitation, the Company and any Affiliates thereof), or any member of the Cantor Group (as defined herein) to terminate their employment or other business arrangements with BGCP or any of its Affiliates or any member of the Cantor Group, or to engage in any Competing Business or hire, employ, engage (including as a consultant or partner) or otherwise enter into a Competing Business with any such Person;

 

(ii)                              solicit any of the customers of BGCP or any of its Affiliates, or any member of the Cantor Group (or any of their employees), induce such customers or their employees to reduce their volume of business with, terminate their relationship with or otherwise adversely affect their relationship with, BGCP or any of its Affiliates or any member of the Cantor Group;

 

(iii)                          do business (if such business would constitute a Competing Business) with any person who was a customer of BGCP or any of its Affiliates or any member of the Cantor Group during the twelve (12) month period prior to the applicable date during the Restricted Period on which a determination of whether any such activity constitutes a Competing Business is being made for purposes of this Agreement;

 

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(iv)                          directly or indirectly engage in, represent in any way, or be connected with, any Competing Business, competing with the business of BGCP or any of its Affiliates or any member of the Cantor Group, whether such engagement shall be as an officer, director, owner, employee, partner, consultant, Affiliate, investor, creditor or other participant in any Competing Business;

 

(v)                              assist others in engaging in any Competing Business in the manner described in the foregoing clause (iv);

 

(vi)                          take any action that results directly or indirectly in revenues or other benefit for Executive or any third party that is or could be considered to be engaged in any activity of the nature set forth in clauses (ii) through (v) above;

 

(vii)                      make  or  participate  in  the  making  of  (including  through  any  of Executive’s Representatives) any comments to the media (print, broadcast, electronic or otherwise) that are disparaging regarding (A) BGCP, any member of the Cantor Group or any of their Affiliates, or (B) the senior executive officers of  BGCP, any member of the Cantor Group or any of their Affiliates, or are otherwise contrary to the interests of BGCP, any member of the Cantor Group or any of their Affiliates, as determined by the General Partner in its sole and absolute discretion;

 

(viii)                  breach Executive’s duty of loyalty to the Partnership (as defined below);

 

(ix)                          take advantage of, or provide another person with the opportunity to take advantage of, a “corporate opportunity” (as such term would apply to the Partnership if it were a corporation) including opportunities related to intellectual property, which for this purpose shall require granting BGC Partners, LLC (the “General Partner”) a right of first refusal for the General Partner to acquire any assets, stock or other ownership interest in a business being sold by Executive or any Affiliate of Executive, if an investment in such business would constitute a “corporate opportunity” (as such term would apply to the Partnership if it were a corporation), that has not been presented to and rejected by the General Partner or that the General Partner rejects but reserves for possible further action by the General Partner in writing, unless otherwise consented to by the General Partner in writing in its sole and absolute discretion; or

 

(x)                              otherwise take any action to harm, that harms, or that reasonably could be expected to harm BGCP or any of its Affiliates, or any member of the Cantor Group, including, without limitation, any breach of the provisions of Section 5(c) below.

 

(b)                              Notwithstanding the foregoing, nothing in this Section 5 shall prohibit Executive from acquiring or owning, in accordance with BGCP’s policies and procedures regarding personal securities transactions (for so long as Executive is an employee of BGCP or one of its Affiliates), less than one percent (1%) of the outstanding securities of any class of any corporation that are listed on a national securities exchange or traded in the over-the-counter market.  

 

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The determination of whether Executive breaches any of the conditions, obligations and covenants (the “Covenants”) set forth in Section 5(a) or Section 5(c) shall be made in good faith by the then-Chairman of BGCP (or his designee).

 

(c)                               Confidentiality.

 

(i)      In addition to any other obligations set forth in this Agreement, Executive recognizes that confidential information has been and will be disclosed to such Executive by the Partnership (as defined herein) and members of the BGCP Group (including but not limited to the Company and the GFI Brand). Executive expressly agrees, at all times on and after the date of this Agreement, whether or not at the time a member of the Partnership (a “Partner”) or providing services to the Partnership, any member of the BGCP Group (including, without limitation, as an employee of the Company and the GFI Brand), to (A) maintain the confidentiality of, and not disclose to any Person without the prior written consent of BGCP, any financial, legal or other advisor to BGCP, any information relating to the business, clients, affairs or financial structure, position or results of the Partnership or its Affiliates (including the Company and the GFI Brand) or any dispute that shall not be generally known to the public or the securities industry and (B) not to use such confidential information other than for the purpose of evaluating such Executive’s investment in the Partnership, if applicable, or in connection with the discharge of any duties to the Partnership or any member of the BGCP Group (including the Company and the GFI Brand) Executive may have in such Executive’s capacity as an officer, director, employee or agent of any member of the BGCP Group (including the Company and the GFI Brand).

 

(ii)      In the event that any third party requests information from Executive (whether during the period in which Executive is a Partner or otherwise during the Restricted Period), regarding any matter related to Executive’s employment by any member of the BGCP Group (including the Company and the GFI Brand) or Executive’s role as a Partner, as the case may be, Executive will promptly contact and notify the General Counsel of BGCP before responding to such requests for information, so that BGCP may take appropriate action to protect the Partnership’s and the BGCP Group’s interests. However, Executive shall not have any obligation to contact and notify the General Counsel of BGCP prior to any such timely discussions between Executive and his or her legal counsel or his or her certified public accountant.

 

(iii)     In the event that Executive is subpoenaed, or asked, to testify as a witness or to produce documents in any legal or administrative or other proceeding related to the Partnership or any member of the BGCP Group (whether during the period in which Executive is a Partner or otherwise during the Restricted Period), or otherwise required by law to disclose confidential information, Executive will promptly notify the Partnership and BGCP of such subpoena or request and meet with Partnership Representatives for a reasonable period of time prior to any such appearance or production.

 

(iv)     So long as Executive shall have complied with his or her obligations under clauses (ii) and (iii) of Section 5(c), if, after a reasonable period after Executive notifies the Partnership and BGCP of any request or subpoena, the Partnership and BGCP are not able to obtain a protective order or other appropriate protection of such information, then Executive may make such disclosures, notwithstanding any other restrictions contained in this Agreement.

 

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(d)                             Definitions.  Defined terms used but not otherwise defined in this  Section 5 or otherwise in this Agreement shall have the meanings given to them in the Tender Offer Agreement.  For purposes of this Agreement, the following terms shall have the following meanings:

 

“Affiliate” means, with respect to any Person, at the time of determination, another Person, whether now existing or hereafter arising, that directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, such first Person, where “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management policies of a Person, whether though the ownership of voting securities, by contact, as trustee or executor or otherwise.

 

“Cantor Group” means, collectively, Cantor Fitzgerald, L.P., a Delaware limited partnership, its subsidiaries, and the limited and general partnerships, corporations or other entities owned, controlled by or under common control with BGCP or BGC Holdings, L.P., a Delaware limited partnership (the “Partnership”).

 

“Competing Business” means an activity that (w) involves the development and operations of voice, hybrid or electronic trading systems, (x) involves the conduct of the wholesale or institutional brokerage business, (y) consists of marketing, manipulating or distributing financial price or other information of a type supplied by BGCP or any of its Affiliates or any member of the Cantor Group to information distribution services or (z) competes with any other business conducted by BGCP or any of its Affiliates, or any member of the Cantor Group if such business was first engaged in by BGCP or any of its Affiliates or any member of the Cantor Group or BGCP or any of its Affiliates or any member of the Cantor Group took substantial steps in anticipation of commencing such business and prior to the applicable date during the Restricted Period that a determination of whether any such activity constitutes a Competing Business is being made for purposes of this Agreement; including, for the avoidance of doubt, on and after the Offer Closing Date, any business activity, wholly or partly, in the same or similar business operated by (including providing services or products similar to or that compete with the products and/or services offered or contemplated by) the Company and its Affiliates (including the GFI Brand), or any such business which is contemplated by the Company or its Affiliates for which the Company or any Affiliate has taken preparatory steps at the later of the Determination Date or the date Executive ceases to provide services to the BGCP Group (including without limitation the GFI Brand).

 

“Person” means an individual, corporation, limited liability company, company, body corporate, partnership (whether or not having separate legal personality), association, trust, unincorporated organization, other entity or group (as defined in the U.S. Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

“Representatives” means, with respect to any Person, the Affiliates, directors, officers, employees, general partners, agents, accountants, managing member, employees, counsel and other advisors and representatives of such Person, including immediate family members.

 

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6.                                    Severability of Covenants.

 

The Covenants contained in Section 5 shall be construed as a series of separate covenants. If, in any judicial proceeding, a court refuses to enforce any of such separate covenants (or any part thereof), then the Parties agree that such unenforceable covenant (or such part) shall be eliminated from this Agreement to the extent necessary to permit the remaining separate covenants (or portions thereof) to be enforced. In the event that the provisions of Section 5 are deemed to exceed the time, geographic or scope limitations permitted by applicable law, then the Parties agree that such provisions shall be reformed to the maximum time, geographic or scope limitations, as the case may be, permitted by applicable law.

 

7.                                    Executive Acknowledgements and Further Agreements.

 

(a)                               Executive acknowledges that (i) Executive has a substantial interest in the Company and is a key employee of the Company; (ii) the goodwill associated with the existing business, customers and assets of the Company prior to the Offer Closing is an integral component of the value of the Company to BGCP and is reflected in the consideration payable in connection with the Offer Closing; and (iii) Executive’s agreement as set forth herein is necessary to preserve the value of the Company for BGCP following the Offer Closing. Executive also acknowledges and agrees that the provisions of this Agreement, specifically including of Section 5, are reasonable in scope and duration and are necessary to protect the interests of BGCP and the Company, including, without limitation, because, among other things: (A) the Company and BGC are engaged in a highly competitive industry; (B) Executive has had unique access to the trade secrets and know-how of the Company, including, without limitation, the plans and strategy (and, in particular, the competitive strategy) of the GFI Brand; and (C) Executive believes that this Agreement provides no more protection than is reasonably necessary to protect BGCP’s legitimate interest in the goodwill, trade secrets and confidential information of the Company.

 

(b)                              Executive further acknowledges and agrees that BGCP may condition the receipt of any award of Partnership units upon: (i) the execution of a release of claims against the BGCP Group, substantially in the form that Partners are required to execute pursuant to Section 12.02(k) of the BGC Partnership Agreement; and (ii) the receipt of a certification, in form and substance reasonably acceptable to BGCP and consistent with any such certification required of any other Partner pursuant to Section 12.02(c)(vii) of the BGC Partnership Agreement, that such Person has not engaged in any of the activities described in Section 5, and that Executive shall be liable for all damages (including any payments received in respect of any BGC Partnership Award under the BGC Partnership Agreement made as a result of a false certification) resulting from the inaccuracy of any such certification, consistent with the provisions of Section 12.02(c)(vii) of the BGC Partnership Agreement. Executive further agrees that execution of this Agreement shall be deemed to constitute execution of the BGC Partnership Agreement as a Partner, effective as of the Determination Date.

 

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8.                                    Remedies.

 

Notwithstanding Section 17(d) below, the Parties agree that any remedy at law for any breach of this Agreement is and will be inadequate, and in the event of a breach or threatened breach by Executive of any of the Covenants (to be determined in the good faith determination of the then-Chairman of BGCP (or his designee)), at any time during the Restricted Period, BGCP and its Affiliates shall be entitled to an injunction restraining Executive from breaching or otherwise violating any provision of this Agreement without proof of special damages or the posting of any bond or other security, as well as all other legal and equitable remedies. Executive agrees not to oppose the granting of injunctive or other equitable relief as a remedy and agrees to waive any requirement for the securing or posting of any bond in connection with such remedy. Nothing herein contained shall be construed as prohibiting BGCP or any of its Affiliates from pursuing any other remedies available to it for such breach or threatened breach during the Restricted Period, including, without limitation, the immediate termination of all of Executive’s rights under this Agreement (including the forfeiture by Executive of any REUs and PREUs delivered to Executive under this Agreement or the BGC Partnership Agreement and immediate cessation of Executive as a Partner without consideration in respect thereof), the immediate return by Executive to BGCP of any REUs and PREUs (or the value thereof) or any other BGC Partnership Award or cash or BGCP Shares transferred to Executive under this Agreement or any BGCP equity incentive plan, and the recovery of damages from Executive generally. In addition, if Executive is determined to have breached any of the Covenants at any time during the Restricted Period, Executive shall indemnify BGCP and its Affiliates for and pay any resulting attorney’s fees and expenses of BGGP and its Affiliates incurred to enforce any of the terms of this Agreement.

 

Executive’s eligibility to receive any applicable merger consideration in connection with the Back-End Mergers described in Section 5.16 of the Tender Offer Agreement (the “Back-End Merger Consideration”) shall be governed by the Tender Offer Agreement and any related agreements and provisions referenced therein but not this Agreement per se, provided that, for avoidance of doubt, (i) if Executive breaches any of the Covenants prior to his receipt of the Back-End Merger Consideration to be paid to him pursuant to Section 5.16 of the Tender Offer Agreement, then neither BGCP nor any of its Affiliates shall have any obligation to pay the Back-End Merger Consideration to Executive, and (ii) if Executive was in full compliance with all of the Covenants, and otherwise eligible to receive the Back-End Merger Consideration, at the time the Back-End Merger Consideration was paid to him, but later breaches any of the Covenants, then BGCP and its Affiliates shall be entitled to such equitable and/or legal relief available to it/them for such breach, but shall not have the right to rescind the Back-End Merger Consideration.

 

9.                                    Non-Exclusivity.

 

The rights and remedies of BGCP and its Affiliates hereunder are not exclusive of or limited by any other rights or remedies that BGCP and its Affiliates may have, whether at law, in equity, by contract or otherwise, all of which shall be cumulative (and not alternative). Without limiting the generality of the foregoing, the rights and remedies of BGCP and its Affiliates hereunder, and the obligations and liabilities of Executive hereunder, are in addition to their respective rights, remedies, obligations and liabilities under the law of unfair competition, misappropriation of trade secrets and the like. 

 

11

 

This Agreement does not limit Executive’s obligations or the rights of BGCP or any of its Affiliates under the terms of any other agreement between Executive and BGCP or any of its Affiliates.

 

10.                            Termination of Employment.

 

(a)                               The Term and Executive’s employment (i) may be terminated by the Company at any time with Cause in accordance with Section 10(d) or without Cause or due to Executive’s Disability (as defined herein), and (ii) shall automatically terminate upon Executive’s death.  Upon any termination of Executive’s employment, Executive agrees to automatically resign, and is deemed to have automatically resigned from, all positions with the Company, BGC and any of their respective Affiliates, including as a member of any applicable board of directors.

 

(b)                              In the event the Term and Executive’s employment is terminated prior to October 1, 2018 by the Company without Cause as determined by the then-Chairman of BGCP (or his designee), (i) the Company shall continue to pay Executive the Base Salary and Bonus, in each case through October 1, 2018, at the same time as the Base Salary and Bonus would have been paid had the Company not terminated Executive without Cause, provided that such payments shall not commence until the conditions in Section 10(f) have been satisfied and the first payment following such conditions having been satisfied shall include all unpaid amounts that would otherwise have been paid to Executive during the period beginning on the termination of Executive’s employment and ending on the date of the first payment, and (ii) Executive shall be entitled to receive a lump sum severance payment of $4,800,000 (the “Severance Payment”), payable within thirty (30) days following such termination of employment or, if later, such later date as set forth in Section 10(f), further provided that, in each case, if Executive violates the Covenants (y) prior to payment of any amounts (or any portion thereof) pursuant to this Section 10(b), then Executive will forfeit all right to receive any further amounts pursuant to this Section 10(b), and (z) after the payment of any amounts (or any portion thereof) pursuant to this Section 10(b), then Executive shall be obligated to repay an amount equal to the sum of (A) the net after-tax amount of all amounts paid to Executive pursuant to this Section 10(b) and (B) the amount of the potential tax benefit to Executive as a result of such repayment, if any (it being understood that Executive shall be obligated to claim a deduction in respect of such repayment to the extent he is permitted to do so under applicable tax laws). Executive acknowledges that the payments set forth in this Section 10(b) are additional consideration for his compliance with the Covenants.

 

(c)                               In the event the Term and Executive’s employment is terminated after October 1, 2018 either by Executive for any reason or by the Company or BGC without Cause, as determined by the then-Chairman of BGCP (or his designee), Executive shall be entitled to receive the Severance Payment, payable within thirty (30) days following such termination of employment or, if later, such later date as set forth in Section 10(f), provided, however, that if Executive violates the Covenants (i) prior to payment of the Severance Payment, then Executive will forfeit all right to receive the Severance Payment, or (ii) after the payment of the Severance Payment, then Executive shall be obligated to repay an amount equal to the sum of (x) the net after-tax amount of the Severance Payment and (y) the amount of the potential tax benefit to Executive as a result of such repayment, if any (it being understood that Executive shall be obligated to claim a deduction in respect of such repayment to the extent he is permitted to do so under applicable tax laws). Executive acknowledges that the Severance Payment above is additional consideration for his compliance with the Covenants.

 

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(d)                             In the event the Term and Executive’s employment is terminated by the Company for Cause, (i) the Company shall pay Executive the amount of Executive’s accrued but unpaid Base Salary and expenses with respect to the period prior to the date of termination of Executive’s employment, to the extent not previously paid, and (ii) all unvested restricted stock units of GFI, and, if Executive has breached any of the Covenants set forth in Section 5 above or any restrictive covenants set forth in any other agreement with the Company, BGC, or any of their Affiliates, REUs, PREUs and any other equity will terminate and be forfeited by Executive immediately upon termination, and (iii) the Company shall have no other or further obligation to Executive hereunder, including without limitation any obligation to make severance payments (including, without limitation, the Severance Payment) or payments in respect of any Bonus, Annual Equity Award (if any) or otherwise.

 

(e)                               In the event that Executive’s employment is terminated by reason of Executive’s death or Disability, the Company shall pay Executive (or his personal representative as the case may be): (i) the amount of Executive’s accrued but unpaid Base Salary and expenses with respect to the period prior to the date of termination of Executive’s employment, to the extent not previously paid; (ii) Bonus for the prior year, if any, that the Company has declared that Executive has earned but which has not yet paid; (iii) a lump sum cash payment equal to Executive’s pro-rated Bonus based on the number of days of the current fiscal year Executive has been employed by the Company divided by 365; (iv) continued medical coverage at active-employee rates for two years or, if earlier, until Executive receives subsequent employer-provided coverage; (v) the amount of any benefits as are payable to Executive (or his personal representative) by reason of such death or Disability under the terms of any employee plan or insurance program maintained by the Company and in which Executive was a participant; and (vi) immediate vesting of any outstanding restricted stock units of GFI upon Executive’s termination of employment by reason of his death or vesting of any outstanding RSUs at the time such RSUs would otherwise have vested upon Executive’s termination of employment by reason of his Disability.  In addition to the foregoing, in the event the Company terminates Executive’s employment by reason of Executive’s Disability, as determined by the then-Chairman of BGCP (or his designee), Executive shall be entitled to receive the Severance Payment, payable within thirty (30) days following the date on which the Term would have expired absent such termination by reason of Disability or, if later, such later date as set forth in Section 10(f), provided, however, that if Executive violates the Covenants (i) prior to payment of the Severance Payment, then Executive will forfeit all right to receive the Severance Payment, or (ii) after the payment of the Severance Payment, then Executive shall be obligated to repay an amount equal to the sum of (x) the net after-tax amount of the Severance Payment and (y) the amount of the potential tax benefit to Executive as a result of such repayment, if any (it being understood that Executive shall be obligated to claim a deduction in respect of such repayment to the extent he is permitted to do so under applicable tax laws). Executive acknowledges that the Severance Payment above is additional consideration for his compliance with the Covenants.

 

(f)                                Any amount payable or benefit provided to Executive pursuant to this Section 10, other than accrued but unpaid Base Salary, shall be paid or provided to Executive only in the event that he executes, delivers and does not revoke a release of claims agreement substantially in the form attached hereto as Exhibit A, and any revocation period with respect to such release shall have expired, in each case within sixty (60) days of the date of termination. 

 

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Subject to the foregoing sentence, any payments made pursuant to this Section 10 that (i) constitute “deferred compensation” for purposes of Code Section 409A shall, subject to Section 18 hereof, be made on the first regularly scheduled payroll date after the sixtieth (60th) day following Executive’s termination of employment, or (ii) do not constitute “deferred compensation” for purposes of Code Section 409A shall be made in accordance with the timeframe set forth in the applicable subsection of this Section 10 or, if later, as soon as practicable after the conditions in the first sentence of this Section 10(f) have been fully satisfied.

 

(g)                              For purposes of this Agreement:

 

(i)                                  The Company may terminate the Term and Executive’s employment for “Cause” if, after giving Executive notice and an opportunity to be heard, the then-Chairman of BGCP (or his designee) determines in good faith that any of the following has occurred: (i) Executive’s willful and continued failure to substantially perform his material duties for the Company (other than due to disability with respect to which Executive has provided reasonably adequate and timely notice to the Company and BGC) after written notice specifying such failure and the manner in which Executive may rectify such failure in the future, if rectifiable, (ii) Executive’s breach of any material term of this Agreement that is not cured within 30 days of written notice from the Company, (iii) Executive’s engaging in willful, intentional misconduct that has resulted in damage to the Company’s, BGC’s or any of their respective Affiliate’s business or reputation, (iv) Executive having been indicted or convicted of, or pleaded guilty or nolo contendere to, a felony or other crime of moral turpitude, (v) Executive having engaged in fraud against the Company, BGC or any of their respective Affiliates or having intentionally misappropriated Company, BGC or any of their respective Affiliates property or breached any fiduciary duty owed to the Company, BGC or any of their respective Affiliates that has a detrimental effect on the Company’s, BGC’s or any of their respective Affiliates’ reputation or business, (vi) a failure by Executive to comply with a material written employment policy or rule of the Company that are not cured within 30 days of written notice from the Company, (vii) Executive’s unreasonable obstruction or impeding of, or failure to cooperate with, any investigation authorized by the Company or BGC or any governmental or self-regulatory entity, (viii) Executive being found liable in any Securities and Exchange Commission or other civil or criminal securities law action or becoming subject to any cease and desist order with respect to such action (regardless of whether Executive admits or denies liability), or (ix) Executive’s failure to maintain any and all licenses necessary to the performance of the duties described in Section 1(a) above. For purposes of the foregoing sentence, any act or omission by Executive done pursuant to the written direction of Shaun Lynn or his successor shall be deemed to be done in good faith and in the best interest of the Company.

 

(ii)                              The Company may terminate the term and Executive’s employment due to “Disability” meaning in the event any physical or mental illness, disability or impairment that, after reasonable accommodation (if any), has prevented Executive from continuing the performance of Executive’s normal duties and responsibilities hereunder for a period in excess of 210 consecutive days or of 270 non-consecutive days within any 18 month period; provided, that any RSUs shall only vest pursuant to Section 10(e) if the then-Chairman of BGCP (or his designee) determines, in his sole and absolute discretion that Executive was Disabled.

 

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(h)                              Amounts payable to Executive pursuant to this Section 10 shall be in full and complete satisfaction of Executive’s rights under this Agreement and any other claims he may have in respect of employment by, or other relationship with, the Company, BGC or any of their respective Affiliates.

 

11.                            Parachute Payments.

 

In the event any payments to Executive constitute “parachute payments” within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”), and will be subject to an excise tax imposed pursuant to Section 4999 of the Code, Executive’s severance benefits will be provided either in full or to such lesser extent which would result in no portion of such benefits being subject to such excise tax, whichever results in Executive receiving the greatest amount of severance benefits on an after-tax basis (notwithstanding that all or some portion of such benefits may be subject to such excise tax).  In the event Executive’s severance benefits are required to be reduced, such reduction shall be implemented by determining the “Parachute Payment Ratio” (as defined below) for each “parachute payment” and then reducing the “parachute payments” in order, beginning with the “parachute payment” with the highest Parachute Payment Ratio.  “Parachute payments” with the same Parachute Payment Ratio shall be reduced based on the payment dates of such “parachute payments,” with amounts having later payment dates being reduced first.  “Parachute payments” with the same Parachute Payment Ratio and the same payment dates shall be reduced on a pro rata basis (but not below zero) prior to reducing “parachute payments” with lower Parachute Payment Ratios.  For purposes of this Section, the term “Parachute Payment Ratio” means a fraction the numerator of which is the value of the applicable “parachute payment” for purposes of Code Section 280G and the denominator of which is the intrinsic value of such “parachute payment.

 

12.                            No Conflicting Obligations; No Conflicting Agreements.

 

Executive represents and warrants to the Company that (i) Executive is not a party to or subject to any other binding covenants, contracts, agreements, arrangements, employee manuals or other writings regarding his employment with any third party, (ii) Executive has the ability and the authority to enter into this Agreement, (iii) entering into and performing under this Agreement will not violate any agreement between Executive and any third party, and (iv) there exist no obligations to any third party that will restrict Executive’s performance of his duties to the Company, BGC or any of their respective Affiliates under this Agreement.

 

13.                            Notification of New Employer.

 

Prior to accepting any other employment during the Restricted Period, Executive shall notify his potential new employer of those of his obligations which are continuing under this Agreement after the termination thereof.

 

14.                            Notices.

 

Any notice, request or other communication permitted or required by this Agreement shall be in writing and shall be deemed to have been given (i) immediately when personally delivered to the recipient (provided a written acknowledgment of receipt is obtained), (ii) five (5) days after mailing by certified or registered mail, postage prepaid, return receipt requested or (iii) two (2) days after being sent by a nationally recognized overnight courier (provided that a written acknowledgment of receipt is obtained by the overnight courier), to the party concerned at the address indicated below (or such other address as the recipient shall have specified by ten (10) days’ advance written notice given in accordance with this Section 9).

 

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If to the 
    	
Shaun Lynn, President
    
	
Company or 
    	
BGC Partners
    
	
BGC:
    	
One Churchill Place
    
	
 
    	
London E14 5RD
    
	
 
    	
Tel: +44 (0) 20 7894   7494
    
	
 
    	
Fax: +44 (0) 20 7894 7662
    
	
 
    	
Email:   slynn@bgcpartners.com
    
	
 
    	
 
    
	
If to Executive:
    	
at the address on file   with the Company.
    

 

Any notice to the Company or BGC hereunder also shall be sent to:

 

Stephen M. Merkel, Esq.

Executive Managing Director and Chief Legal Officer

BGC Partners, L.P.

499 Park Avenue

New York, New York 10022

Tel: (212) 829-4829

Fax: (212) 829-4708

Email: smerkel@bgcpartners.com

 

Any notice to Executive hereunder also shall be sent to:

 

Jeffrey R. Poss, Esq.

Willkie Farr & Gallagher LLP

787 Seventh Avenue

New York, New York 10019

Tel: (212) 728-8536

Fax: (212) 728-9536

Email: jposs@willkie.com

 

15.                            Opportunity for Review.

 

EXECUTIVE ACKNOWLEDGES THAT HE HAS REVIEWED THIS AGREEMENT CAREFULLY AND HAS HAD AMPLE OPPORTUNITY TO OBTAIN ADVICE AS TO THE MEANING OF THE TERMS, COVENANTS AND AGREEMENTS CONTAINED HEREIN FROM SUCH PROFESSIONAL ADVISORS AS EXECUTIVE HAS DEEMED APPROPRIATE OR NECESSARY.

 

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16.                            Indemnification.

 

(a)                               Until the closing of the mergers described in Section 5.16 of the Tender Offer Agreement or, if the Election is not made by the expiration of the Election Period, until the expiration of the Election Period:

 

(i)                                  The Company shall provide Executive with coverage under its current directors’ and officers’ liability policy to the same extent that it provides such coverage to its other senior executives.  Subject to limitations imposed by law, the Company’s by-laws and the Company’s directors’ and officers’ liability policy, the Company shall indemnify and hold harmless Executive to the fullest extent permitted by law from and against any and all claims, damages, expenses (including attorneys’ fees), judgments, penalties, fines, settlements, and all other liabilities incurred or paid by him in connection with the investigation, defense, prosecution, settlement or appeal of any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative and to which Executive was or is a party or is threatened to be made a party by reason of the fact that Executive is or was an officer, employee or agent of the Company or any of its Affiliates, or by reason of anything done or not done by Executive in any such capacity or capacities, provided that Executive acted in good faith, in a manner that was not grossly negligent and did not constitute willful misconduct and, with respect to any criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful.  The Company also shall pay any and all expenses (including attorneys’ fees) incurred by Executive as a result of Executive being called as a witness in connection with any matter involving the Company and/or any of its officers or director.

 

(ii)                              The Company shall pay any expenses (including attorneys’ fees), judgments, penalties, fines, settlements, and other liabilities incurred by Executive in investigating, defending, settling or appealing any action, suit or proceedings described in this Section 16(a) in advance of the final disposition of such action, suit or proceeding.  The Company shall promptly pay the amount of such expenses to Executive, but in no event later than ten (10) days following Executive’s delivery to the Company of a written request for an advance pursuant to this Section 16(a), together with a reasonable accounting of such expenses.

 

(iii)                          Executive hereby undertakes and agrees to repay to the Company any advances made pursuant to this Section 16(a) if and to the extent that it shall ultimately be found in the final judicial decision that Executive is not entitled to be indemnified by the Company for such amounts.  In connection with any advancement of expenses, Executive further agrees to execute and deliver the Company’s customary form of undertaking to repay such advances if and to the extent that it shall ultimately be found in the final judicial decision that Executive is not entitled to be indemnified by the Company for such amounts.

 

(iv)                          The Company shall make the advances contemplated by this Section 16(a) regardless of Executive’s financial ability to make repayment, and regardless of whether indemnification of the indemnitee by the Company will ultimately be required.  Any advances and undertakings to repay pursuant to this Section 16(a) shall be unsecured and interest free.

 

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(b)                              Following the closing of the mergers described in Section 5.16 of the Tender Offer Agreement or, if the Election is not made, following the expiration of the Election Period, indemnification of Executive shall be governed by BGC’s policies.

 

(c)                               The provisions of this Section 16 shall survive the termination of the Term or expiration of the Term.

 

(d)                             If Executive has any knowledge of any actual or threatened action, suit or proceeding, whether civil, criminal, administrative or investigative, as to which Executive may request indemnity under this Section 16, Executive will give the Company prompt written notice thereof; provided, that the failure to give such notice shall not affect Executive’s right to indemnification.

 

17.                            General.

 

(a)                               No waiver by the Company or BGC of any breach of this Agreement will be a waiver of any preceding or subsequent breach.  No waiver by the Company or BGC of any right under this Agreement will be construed as a waiver of any other right.  Neither the Company nor BGC will be required to give notice to enforce strict adherence to all terms of this Agreement.

 

(b)                              The captions and paragraph headings used in this Agreement are for convenience of reference only, and will not affect the construction or interpretation of this Agreement or any of the provisions hereof.

 

(c)                               This Agreement shall be governed by, and construed and enforced in accordance with, the internal laws of the State of New York without regard to their conflicts of law provisions.  Each of the Parties acknowledges that service of process in any proceeding before a court of law arising out of or in connection with this Agreement may be made by delivery of a copy thereof in accordance with the notice provisions of Section 14 of this Agreement.

 

(d)                             Except for an action described in Section 8 or as required by the rules and regulations of the Financial Industry Regulatory Authority (“FINRA”), the Parties hereby agree that all claims, disputes or controversies arising under this Agreement or otherwise concerning in any way Executive’s employment (“Claims”), including, without limitation, Claims for wages or salary, severance or other compensation; Claims for breach of any contract or covenant (express or implied); tort Claims; Claims for any type of discrimination including, without limitation, race, sex, religion, national origin, age, marital status or disability; Claims for benefits (except where any applicable employee benefit or pension plan specifies a different procedure for resolving such Claims) and Claims for violation of any federal, state or other governmental law, statute, regulation, rule or ordinance (but excluding Claims for worker’s compensation or unemployment benefits), shall be resolved only in the courts of the State of New York sitting in the County of New York or the United States District Court for the Southern District of New York and the appellate courts having jurisdiction of appeals in such courts.  In that context, and without limiting the generality of the foregoing (but subject to Section 8 and the rules and regulations promulgated by FINRA), each of the Parties irrevocably and unconditionally (a) submits for himself or itself in any Claim, or for the recognition and enforcement of any judgment in respect thereof (a “Proceeding”), to the exclusive jurisdiction of the courts of the State of New York sitting in the Count of New York, the court of the United States of America for the Southern District of New York, and appellate courts having jurisdiction of appeals from any of the foregoing, and agrees that all claims in respect of any such Claim shall be heard and determined in such New York State court or, to the extent permitted by law, in such federal court; (b) consents that any such Claim may and shall be brought in such courts and waives any objection that he or it may now or thereafter have to the venue or jurisdiction of any such Claim in any such court or that such Claim was brought in an inconvenient court and agrees not to plead or claim the same; (c) waives all right to trial by jury in any Claim (whether based on contract, tort or otherwise) arising out of or relating to this Agreement or Executive’s employment by the Company or any of its Affiliates, or his or its performance under or the enforcement of this Agreement; (d) agrees that service of process in any such Claim may be effected by mailing a copy of such process by registered or certified mail (or any substantially similar form of mail), postage prepaid, to such party at his or its address as provided in Section 14; and (e) agrees that nothing in this Agreement shall affect the right to effect service of process in any other manner permitted by the laws of the State of New York.

 

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(e)                               Executive agrees that, during the Term, for (1) year thereafter and, if longer, during the pendancy of any litigation or other proceeding or other proceeding, (i) Executive shall not communicate with anyone (other than Executive’s attorneys and tax and/or financial advisors and except to the extent Executive determines in good faith is necessary in the performance of Executive’s duties hereunder) with respect to the facts or subject matter of any pending or potential litigation, or regulatory or administrative proceeding involving the Company, BGC or any of their respective Affiliates, other than any litigation or other proceeding in which Executive is a party-in-opposition, without giving prior notice to Stephen M. Merkel, Esq., Executive Managing Director and Chief Legal Officer, BGC Partners, L.P., in accordance with Section 14 above, and (ii) in the event that any other party attempts to obtain information or documents from Executive (other than in connection with any litigation or other proceeding in which Executive is a party-in-opposition) with respect to matters Executive believes in good faith are related to such litigation or other proceeding, Executive shall promptly so notify Stephen M. Merkel, Esq., Executive Managing Director and Chief Legal Officer, BGC Partners, L.P., in accordance with Section 14 above.  Executive agrees to cooperate, in a reasonable and appropriate manner, with the Company, BGC and their attorneys, both during and after the termination of Executive’s employment, in connection with any litigation or other proceeding arising out of or relating to matters in which Executive was involved prior to the termination of Executive’s employment to the extent the Company pays all reasonable travel expenses Executive incurs in connection with such cooperation.  To the extent the Company requests Executive’s cooperation after the termination of his employment, the Company shall, to the extent possible, reasonably consider Executive’s material pre-exiting scheduling commitments in connection with such request.

 

(f)                                This Agreement may be assigned, in whole or in part, by the Company or BGC without Executive’s consent to any of their respective Affiliates, including any survivor entity or other successor in interest, but no such assignment shall relieve the Company of its full responsibilities hereunder, or to a successor in interest to the assets and business of the Company.  Executive may not assign his rights or obligations under this Agreement without the written consent of the Company and BGC.  

 

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This Agreement will be binding upon and will inure to the benefit of the Parties and their respective heirs, executors, administrators, personal representatives, successors and permitted assigns.

 

(g)                              Except as specifically provided in Section 8 above and in this Section 17(g), nothing in this Agreement, express or implied, is intended to or shall confer upon any person or entity, other than the Parties, any legal or equitable right, benefit, or remedy of any nature whatsoever under or by reason of this Agreement; provided, however, that the Parties acknowledge and agree that each of the Company’s and BGC’s Affiliates, any successor in interest to the Company, BGC or any of their Affiliates by merger, consolidation, reorganization, or otherwise, and each of their respective successors and permitted assigns are intended third party beneficiaries of this Agreement entitled to enforce the terms and conditions of this Agreement and entitled to all legal and equitable remedies in the event Executive breaches or threatens to breach, or otherwise violates, any of the Covenants or other provisions of this Agreement. For avoidance of doubt, for purposes of this Section 17(g), successors and permitted assigns shall be limited to those successors and permitted assigns provided for in Section 17(f) of this Agreement.

 

(h)                              This Agreement may be executed in counterparts, each of which will be deemed to be an original hereof, but all of which together will constitute one and the same instrument.

 

(i)                                  This Agreement constitutes the sole and entire agreement and understanding between the Parties as to the subject matter hereof, and supersedes all prior discussions, agreements and understandings of every kind and nature between them as to such subject matter, including without limitation the Prior Agreement (but excluding, for the avoidance of doubt, the DE Bonus Award Agreement) and the agreement containing certain obligations, conditions and covenants set forth in Annex B to the Tender Offer Agreement to be entered into by Executive in connection with the Back-End Mergers pursuant to Section 5.16 of the Tender Offer Agreement).

 

(j)                                  If any provision of this Agreement is held invalid or unenforceable, either in its entirety or by virtue of its scope or application to given circumstances, such provision will thereupon be deemed modified only to the extent necessary to render same valid, or not applicable to given circumstances, or excised from this Agreement, as the situation may require; and this Agreement will be construed and enforced as if such provision had been included herein as so modified in scope or application, or had not been included herein, as the case may be.

 

(k)                              The provisions of Sections 4, 5, 6, 7, 8, 9, 10, 12, 14, 15 and 16 of this Agreement will survive the termination of Executive’s employment in accordance with their terms.

 

18.                            Section 409A Compliance

 

(a)         A termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits upon or following a termination of employment unless such termination is also a “separation from service” within the meaning of Code Section 409A and, for purposes of any such provision of this Agreement, references to a “termination,” “termination of employment” or like terms shall mean “separation from service.”

 

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(b)         Notwithstanding any other payment schedule provided herein to the contrary, if Executive is deemed on the date of termination to be a “specified employee” within the meaning of that term under Code Section 409A(a)(2)(B), then each of the following shall apply:

 

(i)       With regard to any payment that is considered deferred compensation under Code Section 409A payable on account of a “separation from service,” such payment shall be made on the date which is the earlier of (A) the expiration of the six (6)-month period measured from the date of such “separation from service” of Executive, and (B) the date of Executive’s death (the “Delay Period”) to the extent required under Code Section 409A.  Upon the expiration of the Delay Period, all payments delayed pursuant to this Section (whether they would have otherwise been payable in a single sum or in installments in the absence of such delay) shall be paid to Executive in a lump sum, and all remaining payments due under this Agreement shall be paid or provided in accordance with the normal payment dates specified for them herein; and

 

(ii)       To the extent that any benefit to be provided during the Delay Period are considered deferred compensation under Code Section 409A provided on account of a “separation from service,” and such benefits are not otherwise exempt from Code Section 409A, Executive shall pay the cost of such benefits during the Delay Period, and the Company shall reimburse Executive, to the extent that such costs would otherwise have been paid by the Company or to the extent that such benefits would otherwise have been provided by the Company at no cost to Executive, the Company’s share of the cost of such benefits upon expiration of the Delay Period, and any remaining benefits shall be reimbursed or provided by the Company in accordance with the procedures specified herein.

 

(c)         All expenses or other reimbursements under this Agreement shall be made on or prior to the last day of the taxable year following the taxable year in which such expenses were incurred by Executive (provided that if any such reimbursements constitute taxable income to Executive, such reimbursements shall be paid no later than March 15th of the calendar year following the calendar year in which the expenses to be reimbursed were incurred), and no such reimbursement or expenses eligible for reimbursement in any taxable year shall in any way affect the expenses eligible for reimbursement in any other taxable year.

 

(d)         For purposes of Code Section 409A, Executive’s right to receive any installment payment pursuant to this Agreement shall be treated as a right to receive a series of separate and distinct payments.

 

(e)         Whenever a payment under this Agreement specifies a payment period with reference to a number of days (e.g., “payment shall be made within thirty (30) days following the date of termination”), the actual date of payment within the specified period shall be within the sole discretion of the Company.

 

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(f)                                Notwithstanding any other provision of this Agreement to the contrary, in no event shall any payment under this Agreement that constitutes “deferred compensation” for purposes of Code Section 409A be subject to offset, counterclaim, or recoupment by any other payment pursuant to this Agreement or otherwise unless otherwise permitted by Code Section 409A or pursuant to any written agreement providing for the forfeiture of compensation upon the occurrence of certain events.

 

(g)                              To the extent Executive would be subject to the additional 20% tax imposed on certain deferred compensation arrangements pursuant to Code Section 409A as a result of any provision of this Agreement, the Company and BGC agree to reasonably cooperate with Executive to execute any amendment to the provisions hereof reasonably necessary to implement this Section 18(g) but only (i) to the minimum extent necessary to avoid application of such tax and (ii) to the extent that the Company and BGC would not (in the opinion of the Company and BGC), as a result, suffer any adverse consequences.

 

 

 

[Signature Page Follows]

 

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IN WITNESS THEREOF, the Parties have executed and delivered this Agreement as of the date first written above.

	
 
    	
 
    
	
 
    	
GFI   Group Inc.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
BGC   Partners, L.P.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Executive
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Colin Heffron
    
							

 

 

 

 

[Signature page to Employment Agreement, dated as of April 30, 2015, between GFI Group Inc., BGC Partners, L.P. and Colin Heffron]

 

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EXHIBIT A

 

Form of Release

 

THIS RELEASE (this “Release”) is made as of this __th day of ___________, 20__, by and between [Name] (the “Company”), and [Name] (“Executive”).

 

PRELIMINARY RECITALS

 

A.                                Executive’s employment with the Company has terminated.

 

B.                                 [Executive and the Company are parties to an Employment Agreement, dated as of ____________________ (the “Agreement”)].

 

AGREEMENT

 

In consideration of the payments due Executive under the Agreement, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.                                    Executive, intending to be legally bound, does hereby, on behalf of himself and his agents, representatives, attorneys, assigns, heirs, executors and administrators (collectively, the “Executive Parties”) REMISE, RELEASE AND FOREVER DISCHARGE the Company, BGC Partners, L.P., BGC Partners, Inc., and each of their affiliates, subsidiaries, parents, joint ventures, and each of their officers, directors, shareholders, members, partners, and managers, and its and their respective successors and assigns, heirs, executors, and administrators (collectively, the “Company Parties”) from all causes of action, suits, debts, claims and demands whatsoever in law or in equity, which Executive or any of the Executive Parties ever had, now has, or hereafter may have, by reason of any matter, cause or thing whatsoever, from the beginning of Executive’s initial dealings with the Company to the date of this Release, and particularly, but without limitation of the foregoing general terms, any claims arising from or relating in any way to Executive’s employment relationship with Company, the terms and conditions of that employment relationship, and the termination of that employment relationship, including, but not limited to, any claims arising under the Age Discrimination in Employment Act, as amended, 29 U.S.C. § 621 et seq. (“ADEA”), Title VII of The Civil Rights Act of 1964, as amended, 42 U.S.C. § 2000e et seq., the Civil Rights Act of 1966, 42 U.S.C. § 1981, the Civil Rights Act of 1991, Pub. L. No. 102-166, the Americans with Disabilities Act, 42 U.S.C. § 12101 et seq., the Age Discrimination in Employment Act, as amended, 29 U.S.C. § 621 et seq., the Fair Labor Standards Act, 29 U.S.C. § 201 et seq., the National Labor Relations Act, 29 U.S.C. § 151 et seq., and any other claims under any federal, state or local common law, statutory, or regulatory provision, now or hereafter recognized. This Release is effective without regard to the legal nature of the claims raised and without regard to whether any such claims are based upon tort, equity, implied or express contract or discrimination of any sort.  Except as specifically provided herein, it is expressly understood and agreed that this Release shall operate as a clear and unequivocal waiver by Executive of any claim for accrued or unpaid wages, benefits or any other type of payment, and Executive acknowledges that he was paid in full for all work performed and has received all entitlements due from the Company relating to his employment with the Company, including, without limitation, all wages, benefits, and bonus awards.  

 

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Without limiting the generality of the foregoing, Executive is not releasing any claims relating to (i) payments and other rights to be provided to Executive pursuant to Section 10 of the Agreement during the period following the termination of his employment, (ii) Executive’s right, if any, to claim government provided unemployment or workers’ compensation benefits, (iii) Executive’s rights or claims that might arise after signing this Release, (iv) Executive’s rights, if any, under the Consolidated Omnibus Budget Reconciliation Act, (v) Executive’s rights, if any, under the applicable plan documents to any accrued and vested benefits, savings, insurance, equity or pension plan of the Company Parties, (vi) Executive’s rights, if any, as a stockholder of the Company Parties, (vii) Executive’s right, if any, to indemnification pursuant to Section 16 of the Agreement, or (viii) any claim that may not be released by private agreement without judicial or governmental supervision or otherwise.

 

2.                                    Executive expressly waives all rights afforded by any statute which limits the effect of a release with respect to unknown claims.  Executive understands the significance of his release of unknown claims and his waiver of statutory protection against a release of unknown claims.

 

3.                                    Executive agrees that he will not be entitled to or accept any benefit from any claim or proceeding within the scope of this Release that is filed or instigated by him or on his behalf with any agency, court or other government entity.

 

4.                                    The parties agree and acknowledge that the Agreement, and the settlement and termination of any asserted or unasserted claims against the Company and the Company Parties pursuant to this Release, are not and shall not be construed to be an admission of any violation of any federal, state or local statute or regulation, or of any duty owed by the Company or any of the Company Parties to Executive.

 

5.                                    Executive certifies and acknowledges as follows:

 

(a)                               That he has read the terms of this Release, and that he understands its terms and effects, including the fact that he has agreed to RELEASE AND FOREVER DISCHARGE the Company and all Company Parties from any legal action or other liability of any type related in any way to the matters released pursuant to this Release other than as provided in the Agreement and in this Release;

 

(b)                              That he has signed this Release voluntarily and knowingly in exchange for the consideration described herein, which he acknowledges is adequate and satisfactory to him and which he acknowledges is in addition to any other benefits to which he is otherwise entitled;

 

(c)                               That he has been and is hereby advised in writing to consult with an attorney prior to signing this Release;

 

(d)                             That he does not waive rights or claims that may arise after the date this Release is executed or those claims arising under Section 10 of the Agreement with respect to payments and other rights due Executive on the date of, or during the period following, the termination of his employment;

 

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(e)                               That the Company has provided him with adequate opportunity, including a period of twenty-one (21) days from the initial receipt of this Release and all other time periods required by applicable law, within which to consider this Release (it being understood by Executive that Executive may execute this Release less than 21 days from its receipt from the Company, but agrees that such execution will represent his knowing waiver of such 21-day consideration period), and he has been advised by the Company to consult with counsel in respect thereof;

 

(f)                                That he has seven (7) calendar days after signing this Release within which to rescind, in a writing delivered to the Company, the portion of this Release related to claims arising under ADEA or any other claim arising under any other federal, state or local that requires extension of this revocation right as a condition to the valid release and waiver of such claim; and

 

(g)                              That at no time prior to or contemporaneous with his execution of this Release has he filed or caused or knowingly permitted the filing or maintenance, in any state, federal or foreign court, or before any local, state, federal or foreign administrative agency or other tribunal, any charge, claim or action of any kind, nature and character whatsoever (“Claim”), known or unknown, suspected or unsuspected, which he may now have or has ever had against the Company Parties which is based in whole or in part on any matter referred to in Section 1 above; and, subject to the Company’s performance under this Release, to the maximum extent permitted by law, Executive is prohibited from filing or maintaining, or causing or knowingly permitting the filing or maintaining, of any such Claim in any such forum.  Executive hereby grants the Company his perpetual and irrevocable power of attorney with full right, power and authority to take all actions necessary to dismiss or discharge any such Claim.  Executive further covenants and agrees that he will not encourage any person or entity, including but not limited to any current or former employee, officer, director or stockholder of the Company, to institute any Claim against the Company Parties or any of them, and that except as expressly permitted by law or administrative policy or as required by legally enforceable order he will not aid or assist any such person or entity in prosecuting such Claim.

 

6.                                    For the avoidance of doubt, Executive expressly acknowledges that, notwithstanding Sections 1, 2, 3, and 5 hereof, nothing in this Release is intended to or shall prohibit or restrict Executive from filing a charge with a government agency (such as the U.S. Equal Employment Opportunity Commission, the National Labor Relations Board, or the U.S. Securities and Exchange Commission) or testifying, assisting, or otherwise participating in an investigation with any such government agency in connection with Executive’s employment or separation from employment with the Company; provided that, to the fullest extent permitted by law, Executive waives any right to recover or receive any monetary damages or other relief, including, but not limited to, back pay, front pay, and attorneys’ fees; and further  provided that, upon receipt of any subpoena, court order or other legal process compelling the disclosure of any confidential information, Executive will give prompt written notice (to the extent permitted by law) to the undersigned (or his or her successor or designee) so as to permit the Company to protect its interests in confidentiality to the fullest extent possible.

 

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7.                                    Miscellaneous

 

(a)      This Release and the Agreement, and any other documents expressly referenced therein, constitute the complete and entire agreement and understanding of Executive and the Company with respect to the subject matter hereof, and supersedes in its entirety any and all prior understandings, commitments, obligations and/or agreements, whether written or oral, with respect thereto; it being understood and agreed that this Release and including the mutual covenants, agreements, acknowledgments and affirmations contained herein, is intended to constitute a complete settlement and resolution of all matters set forth in Section 1 hereof.

 

(b)      The Company Parties are intended third-party beneficiaries of this Release, and this Release may be enforced by each of them in accordance with the terms hereof in respect of the rights granted to such Company Parties hereunder.  Except and to the extent set forth in the preceding two sentences, this Release is not intended for the benefit of any Person other than the parties hereto, and no such other person or entity shall be deemed to be a third party beneficiary hereof.  Without limiting the generality of the foregoing, it is not the intention of the Company to establish any policy, procedure, course of dealing or plan of general application for the benefit of or otherwise in respect of any other employee, officer, director or stockholder, irrespective of any similarity between any contract, agreement, commitment or understanding between the Company and such other employee, officer, director or stockholder, on the one hand, and any contract, agreement, commitment or understanding between the Company and Executive, on the other hand, and irrespective of any similarity in facts or circumstances involving such other employee, officer, director or stockholder, on the one hand, and Executive, on the other hand.

 

(c)      The invalidity or unenforceability of any provision of this Release shall not affect the validity or enforceability of any other provision of this Release, which shall otherwise remain in full force and effect.

 

(d)      This Release may be executed in separate counterparts, each of which shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.

 

(e)      The obligations of each of the Company and Executive hereunder shall be binding upon their respective successors and assigns.  The rights of each of the Company and Executive and the rights of the Company Parties shall inure to the benefit of, and be enforceable by, any of the Company’s, Executive’s and the Company Parties’ respective successors and assigns.  The Company may assign all rights and obligations of this Release to any successor in interest to the assets of the Company.

 

(f)      No amendment to or waiver of this Release or any of its terms shall be binding upon any party hereto unless consented to in writing by such party.

 

(g)      ALL ISSUES AND QUESTIONS CONCERNING THE CONSTRUCTION, VALIDITY, ENFORCEMENT AND INTERPRETATION OF THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO  ANY CHOICE OF LAW OR CONFLICT OF LAW PROVISION OR RULE (WHETHER OF THE STATE OF NEW YORK OR ANY OTHER JURISDICTION) THAT WOULD CAUSE THE APPLICATION OF THE LAW OF ANY JURISDICTION OTHER THAN THE STATE OF NEW YORK.

 

* * * * *

 

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Intending to be legally bound hereby, Executive and the Company have executed this Release as of the date first written above.

 

	
 
    	
[NAME]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    

READ CAREFULLY BEFORE SIGNING

 

I have read this Release and have been given adequate opportunity, including 21 days from my initial receipt of this Release, to review this Release and to consult legal counsel prior to my signing of this Release.  I understand that by executing this Release I will relinquish certain rights or demands I may have against the Company Parties or any of them.

 

	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Name
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Witness:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    

 

-28-Exhibit 10.4

 

CONFIDENTIAL

 

April 30, 2015

 

Ronald Levi

30 East 85th Street

Apt. 19B

New York, New York 10028

 

Re:                          Separation from Employment

 

Dear Ron:

 

This letter (“Agreement”) sets forth the agreement reached concerning the termination of your employment with GFI Group Inc. (the “Company”).  You were employed by the Company pursuant to the terms of an employment agreement dated August 20, 2008, as amended from time to time, including on December 31, 2008 and March 30, 2009 (collectively, the “Employment Agreement”).  In this Agreement, and unless the context otherwise requires, words commencing with a capital letter shall have the meanings assigned to them in Paragraph 3(d) below.

 

1.                                    Resignation. You have resigned from the Company effective April 30, 2015 (the “Resignation Date”) and the Term (as defined in the Employment Agreement) shall expire as of the Resignation Date for all purposes. The Company will continue your salary, less applicable withholdings and deductions, through the Resignation Date.  You acknowledge and agree that your employment with the Company ends for all purposes on the Resignation Date, and that you shall not represent yourself as being an employee, officer, director, agent, or representative of the Company for any purpose after the Resignation Date.  You further acknowledge and agree that you are entitled to no further payments or benefits whatsoever under the Employment Agreement, and that all obligations of the Company thereunder are terminated as of the Resignation Date.

 

2.                                    Separation Pay and Benefits. In consideration for you signing, delivering, and not revoking this Agreement, and in exchange for the promises, covenants and waivers set forth herein, the Company agrees to the following:

 

a.                                           to pay you a lump-sum payment in the gross amount of $1,250,000, less applicable withholdings and deductions, reflecting the amount of your discretionary bonus for services performed in calendar year 2014, payable within fifteen (15) business days after this Agreement is fully executed, but in no event more than thirty (30) days following the Resignation Date, provided that you have not revoked it as set forth below, and further provided that you are in full compliance with this Agreement as of the payment date; and

 

 

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b.                                          to pay you a lump-sum payment in the gross amount of $2,700,000, less applicable withholdings and deductions, payable within fifteen (15) business days after this Agreement is fully executed, but in no event more than thirty (30) days following the Resignation Date, provided that you have not revoked it as set forth below, and further provided that you are in full compliance with this Agreement as of the applicable payment date; and

 

c.                                           to allow you to continue to vest in any unvested restricted stock units (“RSUs”) granted to you pursuant to grant agreements dated March 31, 2013 and March 31, 2014 (the “Grant Agreements”) in accordance with the schedules and conditions set forth in the Grant Agreements (other than any requirement to be employed on the applicable vesting date), provided that you are in full compliance with this Agreement as of each applicable vesting date, and further provided that you acknowledge and agree that your outstanding, unvested RSUs will be converted into Deferred Cash Awards at the Offer Price (as set forth in the Tender Offer Agreement by and among BGC Partners, Inc., BGC Partners, L.P. and GFI Group Inc., dated as of February 19, 2015 (the “Tender Offer Agreement”)) payable on the same vesting schedules as specified in the Grant Agreements.

 

3.                                    Restrictive Covenants. In consideration for the payments and other benefits described above and for other good and valuable consideration, you agree as follows:

 

a.                                           General. You covenant and agree that at all times while you are employed by the Company, BGC Partners, Inc. (“BGCP”) or any of their Affiliates (collectively, the “BGCP Group”) and for a period of three (3) years following the Resignation Date (the “Restricted Period”), you will not directly or indirectly, alone or by action in concert with others (including with or through any Representative):

 

(i)      solicit, induce or influence, or attempt to solicit, induce or influence, any partner, employee or consultant of the Company or BGCP or any of their Affiliates, or any member of the Cantor Group (as defined herein) to terminate their employment or other business arrangements with the Company or BGCP or any of their Affiliates or any member of the Cantor Group, or to engage in any Competing Business or hire, employ, engage (including as a consultant or partner) or otherwise enter into a Competing Business with any such Person;

 

(ii)      solicit any of the customers of the Company or BGCP or any of their Affiliates, or any member of the Cantor Group (or any of their employees), induce such customers or their employees to reduce their volume of business with, terminate their relationship with or otherwise adversely affect their relationship with, the Company or BGCP or any of their Affiliates or any member of the Cantor Group;

 

(iii)     do business (if such business would constitute a Competing Business) with any person who was a customer of the Company or BGCP or any of their Affiliates or any member of the Cantor Group during the twelve (12) month period prior to the applicable date during the Restricted Period on which a determination of whether any such activity constitutes a Competing Business is being made for purposes of this Agreement;

 

 

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(iv)     directly or indirectly engage in, represent in any way, or be connected with, any Competing Business, competing with the business of the Company or BGCP or any of their Affiliates or any member of the Cantor Group, whether such engagement shall be as an officer, director, owner, employee, partner, consultant, Affiliate, investor, creditor or other participant in any Competing Business;

 

(v)     assist others in engaging in any Competing Business in the manner described in the foregoing clause (iv);

 

(vi)     take any action that results directly or indirectly in revenues or other benefit for you or any third party that is or could be considered to be engaged in any activity of the nature set forth in clauses (ii) through (v) above;

 

(vii)    make or participate in the making of (including through any of your Representatives) any comments to the media (print, broadcast, electronic or otherwise) that are disparaging regarding (A) the Company, BGCP, any member of the Cantor Group or any of their Affiliates, or (B) the senior executive officers of the Company, BGCP, any member of the Cantor Group or any of their Affiliates, or are otherwise contrary to the interests of the Company, BGCP, any member of the Cantor Group or any of their Affiliates, as determined by the General Partner (as defined below) in its sole and absolute discretion;

 

(viii)   breach your duty of loyalty to the Partnership (as defined below);

 

(ix)     take advantage of, or provide another person with the opportunity to take advantage of, a “corporate opportunity” (as such term would apply to the Partnership if it were a corporation) including opportunities related to intellectual property, which for this purpose shall require granting BGC Partners, LLC (the “General Partner”) a right of first refusal for the General Partner to acquire any assets, stock or other ownership interest in a business being sold by you or any Affiliate of yours, if an investment in such business would constitute a “corporate opportunity” (as such term would apply to the Partnership if it were a corporation), that has not been presented to and rejected by the General Partner or that the General Partner rejects but reserves for possible further action by the General Partner in writing, unless otherwise consented to by the General Partner in writing in its sole and absolute discretion; or

 

(x)     otherwise take any action to harm, that harms, or that reasonably could be expected to harm the Company or BGCP or any of its Affiliates, or any member of the Cantor Group, including, without limitation, any breach of the provisions of Paragraph 3(c) below.

 

b.                                          Exceptions. Notwithstanding the foregoing, nothing in this Paragraph 3 shall prohibit you from acquiring or owning, in accordance with BGCP’s policies and procedures regarding personal securities transactions (for so long as you are an employee of BGCP or one of its Affiliates), less than one percent (1%) of the outstanding securities of any class of any corporation that are listed on a national securities exchange or traded in the over-the-counter market.  

 

 

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The determination of whether you breach any of the covenants set forth in Paragraph 3 (the “Covenants”) shall be made in good faith by the then-Chairman of BGCP (or his designee).

 

c.                                           Confidentiality.

 

(i)                                  In addition to any other obligations set forth in this Agreement, you recognize that confidential information has been and will be disclosed to you by the Partnership (as defined herein) and members of the BGCP Group (including, but not limited to, the Company and the GFI Brand). You expressly agree, at all times on and after the date of this Agreement, whether or not at the time a member of the Partnership (a “Partner”) or providing services to the Partnership, any member of the BGCP Group (including, without limitation, as an employee of the Company and the GFI Brand), to (A) maintain the confidentiality of, and not disclose to any Person without the prior written consent of BGCP, any financial, legal or other advisor to BGCP, any information relating to the business, clients, affairs or financial structure, position or results of the Partnership or its Affiliates (including, without limitation, the Company and the GFI Brand) or any dispute that shall not be generally known to the public or the securities industry and (B) not to use such confidential information other than for the purpose of evaluating your investment in the Partnership, if applicable, or in connection with the discharge of any duties to the Partnership or any member of the BGCP Group (including, without limitation, the Company and the GFI Brand) you may have in your capacity as an officer, director, employee or agent of any member of the BGCP Group (including, without limitation, the Company and the GFI Brand).

 

(ii)                              In the event that any third party requests information from you (whether during your employment with the Company or with any member of the BGCP Group or otherwise during the Restricted Period), regarding any matter related to your employment by any member of the BGCP Group (including with the Company and the GFI Brand), as the case may be, you will promptly contact and notify the General Counsel of BGCP before responding to such requests for information, so that BGCP may take appropriate action to protect the Partnership’s and the BGCP Group’s interests. However, you shall not have any obligation to contact and notify the General Counsel of BGCP prior to any such timely discussions between you and your legal counsel or your certified public accountant or if such contact is prohibited by applicable law.

 

(iii)                          In the event that you are subpoenaed, or asked, to testify as a witness or to produce documents in any legal or administrative or other proceeding related to the Partnership or any member of the BGCP Group (including, without limitation, the Company and the GFI Brand), whether during your employment with the Company or with any member of the BGCP Group or otherwise during the Restricted Period, or otherwise required by law to disclose confidential information, you will promptly notify the Partnership and BGCP of such subpoena or request and meet with Partnership Representatives for a reasonable period of time prior to any such appearance or production, unless prohibited from doing so by applicable law.

 

(iv)                          So long as you shall have complied with your obligations under clauses (ii) and (iii) of this Paragraph 3(c), if, after a reasonable period after you notify the Partnership and BGCP of any request or subpoena, the Partnership and BGCP are not able to obtain a protective order or other appropriate protection of such information, then you may make such disclosures, notwithstanding any other restrictions contained in this Agreement.

 

 

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(v)                              In addition to the other obligations set forth above, you agree to promptly return to the Company within ten (10) days following the Resignation Date all Company documents (and any copies thereof) in any format whatsoever and property (including, but not limited to, identification cards or badges, access codes, passwords, keys, computers, mobile phones, and hand-held electronic devices). You further agree that you shall continue to abide by the provisions of any confidentiality agreements executed by you in connection with your employment with the Company, the terms of which shall survive the signing of this Agreement.

 

d.                                         Definitions.  For purposes of this Paragraph 3, defined terms used but not otherwise defined in this Paragraph 3 shall have the meanings given to them in the Tender Offer Agreement and the following terms shall have the following meaning:

 

“Cantor Group” means, collectively, Cantor Fitzgerald, L.P., a Delaware limited partnership, its subsidiaries, and the limited and general partnerships, corporations or other entities owned, controlled by or under common control with BGCP or BGC Holdings, L.P., a Delaware limited partnership (the “Partnership”).

 

“Competing Business” means an activity that (w) involves the development and operations of voice, hybrid or electronic trading systems, (x) involves the conduct of the wholesale or institutional brokerage business, (y) consists of marketing, manipulating or distributing financial price or other information of a type supplied by BGCP or any of its Affiliates or any member of the Cantor Group to information distribution services or (z) competes with any other business conducted by BGCP or any of its Affiliates, or any member of the Cantor Group if such business was first engaged in by BGCP or any of its Affiliates or any member of the Cantor Group or BGCP or any of its Affiliates or any member of the Cantor Group took substantial steps in anticipation of commencing such business and prior to the applicable date during the Restricted Period that a determination of whether any such activity constitutes a Competing Business is being made for purposes of this Agreement; including, for the avoidance of doubt, on and after the Offer Closing Date, any business activity, wholly or partly, in the same or similar business operated by (including, without limitation, providing services or products similar to or that compete with the products and/or services offered or contemplated by) the Company and its Affiliates (including, without limitation, the GFI Brand), or any such business which is contemplated by the Company or its Affiliates for which the Company or any Affiliate has taken preparatory steps at the later of the Determination Date or the date you cease to provide services to the BGCP Group (including, without limitation, the Company or the GFI Brand).

 

“Representatives” means, with respect to any Person, the Affiliates, directors, officers, employees, general partners, agents, accountants, managing member, employees, counsel and other advisors and representatives of such Person, including immediate family members.

 

 

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e.                                           Severability of Covenants. The Covenants contained in Paragraph 3 shall be construed as a series of separate covenants.  If, in any judicial proceeding, a court refuses to enforce any of such separate covenants (or any part thereof), then the Company, BGCP, and you agree that such unenforceable covenant (or such part) shall be eliminated from this Agreement to the extent necessary to permit the remaining separate covenants (or portions thereof) to be enforced. In the event that the provisions of Paragraph 3 are deemed to exceed the time, geographic or scope limitations permitted by applicable law, then the Company or BGCP, as applicable, and you agree that such provisions shall be reformed to the maximum time, geographic or scope limitations, as the case may be, permitted by applicable law.

 

f.                                            Acknowledgements and Further Agreements. You acknowledge that (i) you have a substantial interest in the Company and are a key employee of the Company; (ii) the goodwill associated with the existing business, customers and assets of the Company prior to the Offer Closing is an integral component of the value of the Company to BGCP and is reflected in the consideration payable in connection with the Offer Closing; and (iii) your agreement as set forth herein is necessary to preserve the value of the Company for BGCP following the Offer Closing. You also acknowledge and agree that the provisions of this Agreement, specifically including, without limitation, Paragraph 3, are reasonable in scope and duration and are necessary to protect the interests of BGCP and the Company, including, without limitation, because, among other things: (A) the Company and BGC are engaged in a highly competitive industry; (B) you have had unique access to the trade secrets and know-how of the Company, including, without limitation, the plans and strategy (and, in particular, the competitive strategy) of the GFI Brand; and (C) you believe that this Agreement provides no more protection than is reasonably necessary to protect BGCP’s legitimate interest in the goodwill, trade secrets and confidential information of the Company.

 

g.                                          Remedies. Notwithstanding Paragraph 15 below, you agree that any remedy at law for any breach of this Agreement is and will be inadequate, and in the event of a breach or threatened breach by you of any of the Covenants (to be determined in the good faith determination of the then-Chairman of BGCP (or his designee)), at any time during the Restricted Period, the Company, BGCP and their Affiliates shall be entitled to an injunction restraining you from breaching or otherwise violating any provision of this Agreement without proof of special damages or the posting of any bond or other security, as well as all other legal and equitable remedies. You agree not to oppose the granting of injunctive or other equitable relief as a remedy and agree to waive any requirement for the securing or posting of any bond in connection with such remedy. Nothing herein contained shall be construed as prohibiting the Company, BGCP or their Affiliates from pursuing any other remedies available to it for such breach or threatened breach during the Restricted Period, including, without limitation, the immediate termination of all of your rights under this Agreement, including, without limitation, the forfeiture by you of any right you may have to the payment and benefits set forth in Paragraph 2 (whether paid or unpaid) and the immediate return by you to the Company of any payments or benefits provided to you pursuant to this Agreement, and the recovery of damages from you generally. In addition, if you are determined to have breached any of the Covenants at any time during the Restricted Period, you shall return to the Company any payments or benefits provided to you pursuant to this Agreement and indemnify the Company and BGCP for and pay any resulting attorney’s fees and expenses of the Company or BGCP incurred to enforce any of the terms of this Agreement.

 

 

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h.                                          Non-Exclusivity. The rights and remedies of the Company, BGCP and their Affiliates hereunder are not exclusive of or limited by any other rights or remedies that the Company, BGCP and their Affiliates may have, whether at law, in equity, by contract or otherwise, all of which shall be cumulative (and not alternative). Without limiting the generality of the foregoing, the rights and remedies of the Company, BGCP and their Affiliates hereunder, and the obligations and liabilities of you hereunder, are in addition to their respective rights, remedies, obligations and liabilities under the law of unfair competition, misappropriation of trade secrets and the like. This Agreement does not limit your obligations or the rights of the Company or BGCP (or any Affiliate of the Company or BGCP) under the terms of any other agreement between you and the Company or BGCP (or any Affiliate of the Company or BGCP).

 

4.                                    Release of Claims. In further consideration of the payments and other benefits described in Paragraph 2 above, and for other good and valuable consideration the sufficiency of which you hereby acknowledge, you hereby release and forever discharge the Company, each member of the Cantor Group, and each member of the BGCP Group, and each of their Affiliates, as to themselves and for and on behalf of their current and former parent firms and companies, subsidiaries, divisions, affiliates, joint venture partners, predecessors and successors, successors and assigns, present and former principals, members, directors, officers, employees, owners, agents, subrogees, insurers, servants, attorneys, shareholders transferees, in each case both individually and in their official capacities, and any business in which any of these have a financial ownership interest and each of them (collectively, the “Released Parties”), from all debts, obligations, promises, covenants, agreements, contracts, endorsements, bonds, controversies, suits, actions, causes of action, judgments, damages, expenses, claims or demands, in law or in equity, which you ever had, now have, or which may arise in the future, regarding any matter arising on or before the date of your execution of this Agreement, including but not limited to all claims (whether known or unknown) regarding your employment at or termination of employment from the Company, all claims for breach of contract (express or implied), all claims for equitable relief or recovery of punitive, compensatory, or other damages or monies, attorneys’ fees, all claims under any tort or common law theory, including, without limitation, promissory estoppel, unjust enrichment, breach of a covenant of good faith and fair dealing, violation of public policy, defamation, slander, liable, interference with contractual relations, intentional or negligent infliction of emotional distress, invasion of privacy, misrepresentation, deceit, fraud or negligence, and all claims for alleged discrimination based upon age, race, color, sex, sexual orientation, marital status, religion, national origin, handicap, disability, genetic information, retaliation, or any other characteristic protected by applicable law, including, without limitation, any claim, asserted or unasserted, which could arise under Title VII of the Civil Rights Act of 1964; the Equal Pay Act of 1963; the Age Discrimination in Employment Act of 1967 (“ADEA”); the Older Workers Benefit Protection Act of 1990; the Americans With Disabilities Act of 1990; the Civil Rights Act of 1866, 42 U.S.C. § 1981; the Genetic Information Nondiscrimination Act of 2008; the Family and Medical Leave Act of 1993; the Employee Retirement Income Security Act of 1974; the Civil Rights Act of 1991; the Worker Adjustment and Retraining Notification (“WARN”) Act of 1988; the Sarbanes-Oxley Act of 2002; the Dodd-Frank Wall Street Reform and Consumer Protection Act; the Uniform Services Employment and Reemployment Rights Act; the New York State WARN Act; the New York State Human Rights Law; the New York City Human Rights Law; the New York State Labor Law; and any other federal, state or local laws, statutes, rules, regulations, ordinances, executive orders, or common law, whether equal employment opportunity laws, rules or regulations or otherwise, or any right under any Company pension, welfare, or stock plans. 

 

 

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This Agreement may not be cited as, and does not constitute any admission by any of the Released Parties of any violation of any such law or legal obligation. Without limiting the generality of the foregoing, you are not releasing any claim relating to: (a) your right to enforce this Agreement; (b) your right, if any, under the applicable plan documents to any vested benefits or equity; (c) your right, if any, to indemnification pursuant to Employment Agreement or Company policy; (d) your right, if any, to claim government-provided unemployment or workers’ compensation benefits; (e) your rights or claims that may arise after signing this Agreement; or (f) any claim that may not be released by private agreement without judicial or governmental supervision or otherwise.

 

5.                                    No Pending Actions. You represent, warrant and agree that you have not filed any administrative charges, lawsuits, arbitrations or other proceedings against any of the Released Parties, or filed or caused to be filed any claims, charges or complaints against any of the Released Parties in any administrative, judicial, arbitral or other forum, including, without limitation, any charges or complaints against any of the Released Parties with any international, federal, state or local agency charged with the enforcement of any law or any self-regulatory organization, and you are not aware of any factual or legal basis for any legitimate claim that any of the Released Parties is in violation of any whistleblower, corporate compliance, or other regulatory obligation of any of the Released Parties under international, federal, state or local law, rule or company policy. You further represent, warrant and agree that if you were ever aware of any such basis for a legitimate claim against any of the Released Parties, you informed the General Counsel of the Company and the General Counsel of BGCP of same. You further represent that you have not sold, assigned, transferred, conveyed or otherwise disposed of to any third party, by operation of law, or otherwise, any covenant, guarantee, controversy, judgment, damage, claim, counterclaim, liability or demand of any nature whatsoever covered and released by this Agreement.

 

6.                                    Sufficiency of Consideration.  You acknowledge and agree that the separation benefits to be provided to you under this Agreement are beyond those sums and benefits to which you are otherwise entitled. You further represent, warrant and acknowledge that the Company, BGCP, the Cantor Group and each of their Affiliates owe you no wages, commissions, bonuses, sick pay, personal leave pay, severance pay, vacation pay, equity, fringe benefits, any portion of the Guarantee (as defined in the Employment Agreement) or other compensation or benefits or payments or form of remuneration of any kind or nature other than that specifically provided for in this Agreement.

 

7.                                    Non-Disclosure.  You agree not to disclose the terms, contents or execution of this Agreement, the claims that have been or could have been raised against the Company, BGCP or the Cantor Group or the facts and circumstances underlying this Agreement, except in the following circumstances:

 

 

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a.                                           You may disclose the terms of this Agreement to your immediate family, so long as such family member agrees to be bound by the confidential nature of this Agreement;

 

b.                                          You may disclose the terms of this Agreement to (i) your tax advisors so long as such tax advisors agree to be bound by the confidential nature of this Agreement, (ii) taxing authorities if requested by such authorities and so long as they are advised in writing of the confidential nature of this Agreement, or (iii) your legal counsel; and

 

c.                                           Pursuant to the order of a court or governmental agency of competent jurisdiction, or for purposes of securing enforcement of the terms and conditions of this Agreement should that ever be necessary.

 

8.                                    Agency Actions. For the avoidance of doubt, and notwithstanding Paragraphs 3, 4, 5, 7, and 11 of this Agreement, nothing in this Agreement is intended to or shall prohibit or restrict you from filing a charge with a government agency (such as the U.S. Equal Employment Opportunity Commission, the National Labor Relations Board, or the U.S. Securities and Exchange Commission) or testifying, assisting, or otherwise participating in an investigation with any such government agency in connection with your employment or separation from employment with the Company; provided that to the fullest extent permitted by law, you waive any right to recover or receive any monetary damages or other relief, including, but not limited to, back pay, front pay, and attorneys’ fees; and further provided that, upon receipt of any subpoena, court order or other legal process compelling the disclosure of any confidential information, you will give prompt written notice (to the extent permitted by law) to the undersigned Company representative (or his or her successor or designee) and to the General Counsel of BGCP so as to permit the Company to protect its interests in confidentiality to the fullest extent possible.

 

9.                                    Code Section 409A. The Company may deduct or withhold from any compensation or benefits any applicable federal, state or local tax or employment withholdings or deductions resulting from any payments or benefits provided under this Agreement. In addition, it is the Company’s intention that all payments or benefits provided under this Agreement comply with Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), including without limitation the six month delay for payments of deferred compensation to “key employees” upon separation from service pursuant to Section 409A(a)(2)(B)(i) of the Code (if applicable), and this Agreement shall be interpreted, administered and operated accordingly. If under this Agreement an amount is to be paid in installments, each installment shall be treated as a separate payment for purposes of Treasury Regulation Section 1.409A-2(b)(2)(ii). Notwithstanding anything to the contrary herein, the Company does not guarantee the tax treatment of any payments or benefits under this Agreement, including without limitation under the Code, federal, state, local or foreign tax laws and regulations. In the event the period of payment referenced in Paragraph 2 of this Agreement ends in the taxable year following your termination of employment, any severance payment or deferred compensation payment shall be paid or commence in such subsequent taxable year if required under Section 409A of the Code.  You are solely responsible for all tax obligations that may arise from this Agreement, and you agree to promptly pay and to indemnify the Company from all costs, damages or expenses it incurs in connection with such a claim.

 

 

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10.                            Cooperation.  You agree that you will assist and cooperate with the Company, BGCP, the Cantor Group and their Affiliates in connection with the transition of your job responsibilities, including, without limitation, by making yourself available to provide such assistance and cooperation to the Company, BGCP, the Cantor Group and their Affiliates on reasonable notice. You further agree that you will assist and cooperate with the Company, BGCP, the Cantor Group or any of their Affiliates in connection with the defense or prosecution of any pending or threatened action that may be made against or by the Company, BGCP, the Cantor Group or any of their Affiliates or in connection with any ongoing or future investigation or dispute or claim of any kind involving the Company, BGCP, the Cantor Group or any of their Affiliates, including, without limitation, meeting with the their counsel or other representative to prepare for any proceeding (including depositions), to provide affidavits, to assist with any audit, inspection, proceeding or other inquiry, and to provide truthful testimony in connection with any litigation or other legal proceeding before any arbitral, administrative, judicial, legislative, or other body or agency, to the extent such claims, investigations or proceedings relate to services performed or required to be performed by you, pertinent knowledge possessed by you, or any act or omission by you. You further agree to perform all acts and execute and deliver any documents that may be reasonably necessary to carry out the provisions of this Paragraph.  The Company agrees to reimburse you for reasonable documented travel expenses incurred should your presence be required in person. You further agree to promptly notify the Company in writing if you are contacted (directly or indirectly) by any individual or person representing an individual or entity that is or may be legally or competitively adverse to the Company, BGCP, the Cantor Group or their Affiliates in connection with any claims or legal proceedings (other than any charges filed with a government agency by you), including by providing a reasonable description of the content of the communication with the legally or competitively adverse individual or entity. You further represent that you have advised authorized officers of the Company, or other Company employees designated in the Company’s Handbook and policies, of all facts about which you are aware and which you believe may constitute a violation of Company policy and/or the Company’s legal obligations, if any.

 

11.                            Ownership. You agree and acknowledge that the Company owns all tangible and intangible work product originated or developed by you in connection with your employment, even if developed outside the Company’s premises.  You further agree that the Company shall have exclusive ownership of any and all right, title and interest in (1) all copyrights, trademarks, service mark rights, patents or processes associated with any work, mark, invention or process produced during the course of your employment which was originated or developed in connection with such employment with the Company or any related party; and (2) any such proprietary rights with respect to any invention or process originated or developed in connection with your employment with the Company or any related party reduced to practice following the termination of your employment, if the invention or process existed in an intangible form prior to such termination, even if it was not workable at that time.  You agree to execute any and all documents necessary to protect and preserve the Company’s proprietary rights in copyrights, trademarks, service marks, patents, processes and trade secrets, including at the Company’s request, to confirm such assignment in writing.

 

 

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12.                            Entire Agreement.  This Agreement constitutes the entire agreement between the Company and you, and supersedes and cancels all prior and contemporaneous written and oral agreements, if any, between the Company and you. You affirm that, in entering into this Agreement, you are not relying upon any oral or written promise or statement made by anyone at any time on behalf of the Company.

 

13.                            Successors and Assigns; Third Party Beneficiaries. This Agreement is binding upon you and your successors, assigns, heirs, executors, administrators and legal representatives. This Agreement may not be assigned, in whole or in part, by either party hereto without the prior written consent of the other party (any purported assignment hereof in violation of this subparagraph being null and void), provided however, that the Company may, without prior consent, freely assign this Agreement to any successor in interest to the Company or any affiliate by merger, consolidation, reorganization or otherwise. Except as specifically provided in Paragraph 3(g) above and in this Paragraph 13, nothing in this Agreement, express or implied, is intended to or shall confer upon any person or entity, other than the Company and you, any legal or equitable right, benefit, or remedy of any nature whatsoever under or by reason of this Agreement; provided, however, that the Company and you acknowledge and agree that the Company, each member of the BGCP Group, each member of the Cantor Group, and each of their Affiliates, any successor in interest to the Company, any member of the BGCP Group, any member of the Cantor Group, or any of their Affiliates by merger, consolidation, reorganization, or otherwise, and each of their respective successors and permitted assigns are intended third party beneficiaries of this Agreement entitled to enforce the terms and conditions of this Agreement and entitled to all legal and equitable remedies in the event you breach or threaten to breach, or otherwise violates, any of the Covenants or other provisions of this Agreement. For avoidance of doubt, for purposes of this Paragraph 13, successors and permitted assigns shall be limited to those successors and permitted assigns provided for in this Paragraph 13.

 

14.                            Severability.  If any of the provisions, terms or clauses of this Agreement is declared illegal, unenforceable or ineffective in a legal forum, those provisions, terms and clauses shall be deemed severable, such that all other provisions, terms and clauses of this Agreement shall remain valid and binding upon the applicable parties.

 

15.                            Dispute Resolution.  This Agreement will be governed by and construed in accordance with the laws of the State of New York without giving effect to the principles of conflicts of laws thereof.  Any disputes, differences or controversies arising under this Agreement shall be settled and finally determined by arbitration before a panel of (a) three arbitrators in New York, New York, according to the rules of Financial Industry Regulatory Authority (“FINRA”), if you are a FINRA registered person and the dispute is eligible for resolution by arbitration in accordance with the FINRA Dispute Resolution process, or (b) by a single arbitrator in New York, New York according to the Employment Dispute Rules of the American Arbitration Association or its successor (the “AAA”).  The arbitrator(s) shall make their award in accordance with and based upon all provisions of this Agreement and judgment upon any award rendered by the arbitrators shall be entered in any court having jurisdiction thereof. However, it is understood and agreed that the arbitrators are not authorized or entitled to include as part of any award rendered by them, special, exemplary, punitive or statutory double (or multiple) damages or amounts in the nature of special, exemplary, punitive or statutory double (or multiple) damages regardless of the nature or form of the claim or grievance that has been submitted to arbitration.  

 

 

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If an applicable statute or another agreement discusses awards of attorneys’ fees, such statute or agreement will apply. In addition, whether or not there is any such applicable statute, at any point either party may in writing offer to pay the other a stated amount of money, or partnership interests or stock in a Company entity (the “Offeror”) to resolve the matter in return for a general release of the Offeror. The other party (“Offeree”) will have fourteen (14) calendar days from the day after the offer is sent to accept.  If the Offeree does not unconditionally accept in writing within the fourteen (14) calendar days and, thereafter, is awarded less than the amount offered, the Offeror shall be awarded its attorneys’ fees and costs and disbursements from the date of the offer.  Such amount shall be offset against any damages awarded to the Offeree, and, if greater than the damages awarded, the net deficit shall be entered as an award in favor of the Offeree.  You hereby irrevocably consent to the service of process outside the territorial jurisdiction of such arbitrators in any such action or proceeding by mailing copies thereof by registered U.S. mail, postage prepaid, to your address as set forth herein.

 

16.                            Binding Agreement. You may not execute this Agreement until the Resignation Date, and any purported execution by you of this Agreement prior to the Resignation Date shall be null and void. This Agreement in unsigned form does not become an offer of any kind and does not become capable of acceptance until executed by you, and at such time, this Agreement is capable of contract formation by signature by a duly authorized officer of the Company; this Agreement shall be effective only when executed by both you and a duly authorized officer of the Company, and upon such shall be binding and enforceable.

 

17.                            Counterparts. This Agreement may be executed by facsimile and .pdf and in counterparts, each of which shall be deemed an original and all of which when taken together shall constitute but one and the same instrument.

 

18.                            Withholding.  All amounts paid hereunder shall be subject to withholding and other applicable taxes.  Any amounts due to you under this Agreement may be set off by any obligations of you to the Company whether under this Agreement or any other agreement or otherwise, whether existing or hereafter arising (including both monetary obligations and the fair market value of any non-cash item and including amounts not yet due), to the extent permitted by law.

 

19.                            Knowing and Voluntary Waiver.  Without detracting in any respect from any other provision of this Agreement:

 

a.        You, in consideration of the payments and other consideration provided to you as described in Paragraph 2 of this Agreement, agree and acknowledge that this Agreement constitutes a knowing and voluntary waiver of all rights or claims you have or may have against the Company, BGCP, the Cantor Group or any of their Affiliates, as set forth herein, including, but not limited to, all rights or claims arising under the Age Discrimination in Employment Act of 1967, as amended (“ADEA”), or relevant equivalent state or local statute, including, but not limited to, all claims of age discrimination in employment and all claims of retaliation in violation of the ADEA or other state or local age discrimination statute; and you have no physical or mental impairment of any kind that has interfered with your ability to read and understand the meaning of this Agreement or its terms, and that you are not acting under the influence of any medication or mind-altering chemical of any type in entering into this Agreement.

 

 

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b.        You understand that, by entering into this Agreement, you do not waive rights or claims that may arise after the date of your execution of this Agreement, including, without limitation, any rights or claims that you may have to secure enforcement of the terms and conditions of this Agreement.

 

c.        You agree and acknowledge that the consideration provided to you under this Agreement is in addition to anything of value to which you are already entitled.

 

d.        The Company hereby advises you to consult with an attorney prior to executing this Agreement.

 

e.        You acknowledge that you were informed that you had at least twenty-one (21) days in which to review and consider this Agreement and to consult with an attorney regarding the terms and effect of this Agreement. You may, in your sole discretion, execute and deliver to the Company this Agreement prior to the expiration of the 21-day period, provided that you do not execute it before the Resignation Date.

 

f.        Nothing in this Agreement shall prevent you (or your attorneys) from (i) commencing an action or proceeding to enforce this Agreement or (ii) exercising your right under the Older Workers Benefit Protection Act of 1990 to challenge the validity of your waiver of ADEA claims set forth in Paragraph 4 of this Agreement.

 

20.                            Revocation.  You may revoke this Agreement within seven (7) days from the date you sign this Agreement, in which case this Agreement shall be null and void and of no force or effect on either any of the parties hereto. Any revocation must be in writing and received by the Company before the end of the seventh day after this Agreement is executed by you.  Such revocation must be sent to the undersigned at the Company.

 

21.                            Amendments.  This Agreement may not be changed or altered, except by a writing signed by an authorized officer of the Company and you. This Agreement is entered into in the State of New York, and the laws of the State of New York will apply to any dispute concerning it, excluding the conflict-of-law principles thereof.

 

[SIGNATURE PAGE FOLLOWS]

 

 

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YOU EXPRESSLY ACKNOWLEDGE, REPRESENT AND WARRANT THAT YOU HAVE READ THIS AGREEMENT CAREFULLY; THAT YOU FULLY UNDERSTAND THE TERMS, CONDITIONS AND SIGNIFICANCE OF THIS AGREEMENT; THAT YOU HAVE HAD A FULL OPPORTUNITY TO REVIEW THIS AGREEMENT WITH AN ATTORNEY; THAT YOU UNDERSTAND THAT THIS AGREEMENT HAS BINDING LEGAL EFFECT; AND THAT YOU HAVE EXECUTED THIS AGREEMENT FREELY, KNOWINGLY AND VOLUNTARILY.

 

PLEASE READ CAREFULLY. THIS AGREEMENT HAS IMPORTANT LEGAL CONSEQUENCES.

 

 

 

	
Date:
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Ronald Levi
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
GFI   Group Inc.
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Date: 
    	
 
    	
 
    	
By:
    	
 
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
							

 

 

You must sign and return this Agreement to the Company no later than the end of the 21st day following receipt of this document or irrevocably lose the opportunity to receive the consideration detailed herein. You received this Agreement on April 30, 2015.

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