Document:

Exhibit 10.3

 

AMENDED AND RESTATED

DOMESTIC PLEDGE AGREEMENT

 

THIS AMENDED AND RESTATED DOMESTIC PLEDGE AGREEMENT (as amended and modified from time to time, this “Domestic Pledge Agreement”) dated as of December 20, 2010 is by and among the parties identified as “Pledgors” on the signature pages hereto and such other parties as may become Pledgors hereunder after the date hereof (individually a “Pledgor”, and collectively the “Pledgors”) and Bank of America, N.A., as administrative agent (in such capacity, the “Administrative Agent”) for the holders of the Secured Obligations (defined below) and amends and restates that certain Amended and Restated Domestic Pledge Agreement, dated as of February 24, 2006, as amended and modified from time to time prior to the date hereof, among the pledgors from time to time party thereto and Bank of America, N.A., as administrative agent, which amended and restated that certain Domestic Pledge Agreement, dated as of August 23, 2004, as amended and modified from time to time prior to the date hereof, among the pledgors from time to time party thereto and Bank of America, N.A., as administrative agent..

 

W I T N E S S E T H

 

WHEREAS, pursuant to that certain Amended and Restated Credit Agreement dated as of December 20, 2010 (as amended, modified, supplemented and extended from time to time, the “Credit Agreement”) among GFI Group, Inc., a Delaware corporation (“GFI”), GFI Holdings Limited (the “Foreign Borrower”; together with GFI, the “Borrowers”), the Guarantors from time to time party thereto, the Lenders from time to time party thereto and Bank of America, N.A., as Administrative Agent and L/C Issuer, the Lenders have agreed to provide an amended and restated credit facility to replace and refinance that certain Amended and Restated Credit Agreement dated as of February 24, 2006, as amended and modified, supplemented or extended from time to time prior to the date hereof, among the Borrowers, the guarantors from time to time party thereto, the lenders from time to time party thereto and Bank of America, N.A., as administrative agent, which amended and restated that certain Credit Agreement dated as of August 23, 2004, as amended and modified, supplemented or extended from time to time prior to the date hereof, among the Borrowers, the guarantors from time to time party thereto, the lenders from time to time party thereto and Bank of America, N.A., as administrative agent; and

 

WHEREAS, this Domestic Pledge Agreement is required under the terms of the Credit Agreement.

 

NOW, THEREFORE, in consideration of these premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.             Definitions.

 

(a)           Capitalized terms used and not otherwise defined herein shall have the meanings provided in the Credit Agreement.

 

(b)           As used herein, the following terms shall have the meanings assigned thereto in the Uniform Commercial Code in effect in the State of New York on the date hereof: Accession, Financial Asset, Proceeds, Securities Account and Security.

 

(c)           As used herein, the following terms shall have the meanings set forth below:

 

“Pledged Collateral” has the meaning provided in Section 2 hereof.

 

 

“Pledged Shares” has the meaning provided in Section 2 hereof.

 

“Secured Obligations” means, without duplication, (i) all of the obligations of the Loan Parties to the Lenders (including the L/C Issuer) and the Administrative Agent, under the Credit Agreement and the other Loan Documents (including, but not limited to, any interest accruing after the commencement by or against any Loan Party of a proceeding under any Debtor Relief Laws, regardless of whether such interest is an allowed claim under such proceeding), whether now existing or hereafter arising, due or to become due, direct or indirect, absolute or contingent, howsoever evidenced, created, held or acquired, whether primary, secondary, direct, contingent, or joint and several, as such obligations may be amended, modified, increased, extended, renewed or replaced from time to time, (ii) all of the obligations owing by the Loan Parties under any Swap Contract with any Lender or any Affiliate of a Lender, whether now existing or hereafter arising, (iii) all of the obligations owing by the Loan Parties under any Treasury Management Agreement with any Lender or any Affiliate of a Lender, whether now existing or hereafter arising, and (iv) all costs and expenses incurred in connection with enforcement and collection of the foregoing obligations, including Attorney Costs.

 

“UCC” means the Uniform Commercial Code.

 

2.             Pledge and Grant of Security Interest.  To secure the prompt payment and performance in full when due, whether by lapse of time, acceleration, mandatory prepayment or otherwise, of the Secured Obligations, each Pledgor hereby grants, pledges and assigns to the Administrative Agent, for the benefit of the holders of the Secured Obligations, a continuing security interest in, any and all right, title and interest of such Pledgor in and to the following, whether now owned or existing or owned, acquired, or arising hereafter (collectively, the “Pledged Collateral”):

 

(a)           Pledged Shares.    (i) One hundred percent (100%) (or, if less, the full amount owned by such Pledgor) of the issued and outstanding Capital Stock owned by such Pledgor of each Domestic Subsidiary set forth on Schedule 2(a) attached hereto and (ii) sixty-five percent (65%) (or, if less, the full amount owned by such Pledgor) of the issued and outstanding shares of each class of Capital Stock (and in any event no more than 65% of the voting stock in the aggregate) owned by such Pledgor of each Foreign Subsidiary set forth on Schedule 2(a) attached hereto, in each case together with the certificates (or other agreements or instruments), if any, representing such Capital Stock, and all options and other rights, contractual or otherwise, with respect thereto (collectively, together with the Capital Stock described in Section 2(b) and 2(c) below, the “Pledged Shares”), including, but not limited to, the following:

 

(A)          all shares, securities, membership interests or other equity interests representing a dividend on any of the Pledged Shares, or representing a distribution or return of capital upon or in respect of the Pledged Shares, or resulting from a stock split, revision, reclassification or other exchange therefor, and any subscriptions, warrants, rights or options issued to the holder of, or otherwise in respect of, the Pledged Shares; and

 

(B)           without affecting the obligations of the Pledgors under any provision prohibiting such action hereunder or under the Credit Agreement, in the event of any consolidation or merger involving the issuer of any Pledged Shares and in which such issuer is not the surviving entity, all Capital Stock of the successor entity formed by or resulting from such consolidation or merger.

 

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(b)           Additional Shares.  (i) One hundred percent (100%) (or, if less, the full amount owned by such Pledgor) of the issued and outstanding Capital Stock owned by such Pledgor of each other Domestic Subsidiary that is a Material Subsidiary (including, without limitation, any Person that hereafter becomes a Domestic Subsidiary that is a Material Subsidiary) and (ii) sixty-five percent (65%) (or, if less, the full amount owned by such Pledgor) of the issued and outstanding shares of each class of Capital Stock (and in any event no more than 65% of the voting stock in the aggregate) owned by such Pledgor of any Person that hereafter becomes a direct (first tier) Foreign Subsidiary that is a Material Subsidiary, including, without limitation, the certificates (or other agreements or instruments) representing such Capital Stock.

 

(c)           Accessions and Proceeds.  All Accessions and all Proceeds of any and all of the foregoing.

 

Without limiting the generality of the foregoing, it is hereby specifically understood and agreed that a Pledgor may from time to time hereafter deliver additional Capital Stock to the Administrative Agent as collateral security for the Secured Obligations.  Upon delivery to the Administrative Agent, such additional Capital Stock shall be deemed to be part of the Pledged Collateral of such Pledgor and shall be subject to the terms of this Domestic Pledge Agreement whether or not Schedule 2(a) is amended to refer to such additional Capital Stock.

 

3.             Security for Secured Obligations.  The security interest created hereby in the Pledged Collateral of each Pledgor constitutes continuing collateral security for the Secured Obligations (subject to Section 24 hereof).

 

4.             Delivery of the Pledged Collateral.  Each Pledgor hereby agrees that:

 

(a)           Delivery of Certificates.  Each Pledgor shall deliver to the Administrative Agent (i) simultaneously with or prior to the execution and delivery of this Domestic Pledge Agreement, all certificates representing the Pledged Shares of such Pledgor and (ii) promptly upon the receipt thereof by or on behalf of such Pledgor, all other certificates and instruments constituting Pledged Collateral of such Pledgor.  Prior to delivery to the Administrative Agent, all such certificates and instruments constituting Pledged Collateral of such Pledgor shall be held in trust by such Pledgor for the benefit of the Administrative Agent pursuant hereto.  All such certificates and instruments shall be delivered in suitable form for transfer by delivery or shall be accompanied by duly executed instruments of transfer or assignment in blank, substantially in the form provided in Exhibit 4(a) attached hereto.

 

(b)           Additional Securities.  If such Pledgor shall receive by virtue of its being or having been the owner of any Pledged Collateral, any (i) certificate or instrument, including without limitation, any certificate representing a dividend or distribution in connection with any increase or reduction of capital, reclassification, merger, consolidation, sale of assets, combination of shares or other equity interests, stock splits, spin-off or split-off, promissory notes or other instruments; (ii) option or right, whether as an addition to, substitution for, or an exchange for, any Pledged Collateral or otherwise; (iii) dividends payable in securities; or (iv) distributions of securities in connection with a partial or total liquidation, dissolution or reduction of capital, capital surplus or paid-in surplus, then such Pledgor shall receive such certificate, instrument, option, right or distribution in trust for the benefit of the Administrative Agent, shall segregate it from such Pledgor’s other property and shall deliver it forthwith to the Administrative Agent in the exact form received together with any necessary endorsement and/or appropriate stock power duly executed in blank, substantially in the form provided in Exhibit 

 

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4(a), to be held by the Administrative Agent as Pledged Collateral and as further collateral security for the Secured Obligations.

 

(c)           Financing Statements.  Each Pledgor authorizes the Administrative Agent to file one or more financing statements (with collateral descriptions broader, including without limitation “all assets” and/or “all personal property” collateral descriptions, and/or less specific than the description of the Collateral contained herein) disclosing the Administrative Agent’s security interest in the Pledged Collateral.  Each Pledgor agrees to execute and deliver to the Administrative Agent such financing statements and other filings as may be reasonably requested by the Administrative Agent in order to perfect and protect the security interest created hereby in the Pledged Collateral of such Pledgor.

 

5.             Representations and Warranties.  Each Pledgor hereby represents and warrants to the Administrative Agent, for the benefit of the holders of the Secured Obligations, that so long as any of the Secured Obligations remains outstanding and until all of the commitments relating thereto have been terminated:

 

(a)           Authorization of Pledged Shares.  The Pledged Shares of such Pledgor are duly authorized and validly issued, are fully paid and nonassessable and are not subject to the preemptive rights of any Person.

 

(b)           Title.  Such Pledgor has good and indefeasible title to the Pledged Collateral of such Pledgor and is the legal and beneficial owner of such Pledged Collateral free and clear of any Lien, other than Permitted Liens.  There exists no “adverse claim” within the meaning of Section 8-102 of the UCC with respect to the Pledged Shares of such Pledgor.

 

(c)           Exercising of Rights.  The exercise by the Administrative Agent of its rights and remedies hereunder will not violate any law or governmental regulation or any material contractual restriction binding on or affecting such Pledgor or any of its property.

 

(d)           Pledgor’s Authority.  Except as may be required by applicable foreign laws affecting the pledge of Capital Stock of Foreign Subsidiaries, no authorization, approval or action by, and no notice or filing with any Governmental Authority or with the issuer of any Pledged Shares is required either (i) for the pledge made by such Pledgor or for the granting of the security interest by such Pledgor pursuant to this Domestic Pledge Agreement (except as have been already obtained) or (ii) for the exercise by the Administrative Agent or the holders of the Secured Obligations of their rights and remedies hereunder (except as may be required by the UCC or laws affecting the offering and sale of securities).

 

(e)           Security Interest/Priority.  This Domestic Pledge Agreement creates a valid security interest in favor of the Administrative Agent for the benefit of the holders of the Secured Obligations, in the Pledged Collateral of such Pledgor.  The delivery to the Administrative Agent of certificates evidencing the Pledged Collateral of such Pledgor, together with duly executed stock powers in respect thereof, will perfect and establish the first priority (subject to Permitted Liens) of the Administrative Agent’s security interest in any certificated Pledged Collateral of such Pledgor that constitutes a Security.  The filing of appropriate UCC financing statements in the appropriate filing offices in the jurisdiction of 

 

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organization of such Pledgor or obtaining “control” over such interests in accordance with the provisions of Section 8-106 of the UCC will perfect and establish the first priority (subject to Permitted Liens) of the Administrative Agent’s security interest in any uncertificated Pledged Collateral that constitutes a Security.  The filing of appropriate UCC financing statements in the appropriate filing offices in the jurisdiction of organization of the applicable Pledgor will perfect and establish the first priority of the Administrative Agent’s security interest in any Pledged Collateral that does not constitute a Security to the extent that a security interest therein may be perfected by such filing.  Except as set forth in this subsection (e), no action is necessary to perfect the security interests granted by the Pledgors under this Domestic Pledge Agreement.

 

(f)            Partnership and Membership Interests.  Except as previously disclosed to the Administrative Agent, none of the Pledged Shares consisting of partnership or limited liability company interests (i) is dealt in or traded on a securities exchange or in a securities market, (ii) by its terms expressly provides that it is a security governed by Article 8 of the UCC, (iii) is an investment company security, (iv) is held in a Securities Account or (v) constitutes a Security or a Financial Asset.

 

(g)           No Other Interests.  Other than as set forth on Schedule 2(a) attached hereto, no Pledgor owns any Capital Stock in any (i) Domestic Subsidiary that is a Material Subsidiary or (ii) direct (first tier) Foreign Subsidiary that is a Material Subsidiary.

 

6.             Covenants.  Each Pledgor hereby covenants, that so long as any of the Secured Obligations remains outstanding and until all of the commitments relating thereto have been terminated, such Pledgor shall:

 

(a)           Books and Records.  Mark its books and records (and shall cause the issuer of the Pledged Shares of such Pledgor to mark its books and records) to reflect the security interest granted to the Administrative Agent, for the benefit of the holders of the Secured Obligations, pursuant to this Domestic Pledge Agreement.

 

(b)           Defense of Title.  Warrant and defend title to and ownership of the Pledged Collateral of such Pledgor at its own expense against the claims and demands of all other parties claiming an interest therein, keep such Pledged Collateral free from all Liens, except for Permitted Liens, and not sell, exchange, transfer, assign, lease or otherwise dispose of Pledged Collateral of such Pledgor or any interest therein, except as permitted under the Credit Agreement and the other Loan Documents.

 

(c)           Further Assurances.  Promptly execute and deliver at its expense all further instruments and documents and take all further action that may be necessary or that the Administrative Agent may reasonably request in order to (i) perfect and protect the security interest created hereby in the Pledged Collateral of such Pledgor (including, without limitation, any and all action necessary to satisfy the Administrative Agent that the Administrative Agent has obtained a first priority (subject to Permitted Liens) perfected security interest in such Pledged Collateral); (ii) enable the Administrative Agent to exercise and enforce its rights and remedies hereunder in respect of the Pledged Collateral of such Pledgor; and (iii) otherwise effect the purposes of this Domestic Pledge Agreement, including, without limitation and if requested by the Administrative Agent, delivering to the Administrative Agent irrevocable proxies in respect of the Pledged Collateral of such Pledgor.

 

(d)           Amendments.  Not make or consent to any amendment, termination or other modification or waiver with respect to any of the Pledged Collateral of such Pledgor or enter into any agreement or allow to exist any restriction with respect to any of the Pledged Collateral of such Pledgor other than pursuant hereto or as may be permitted under the Credit Agreement.

 

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(e)           Compliance with Securities Laws.  File all reports and other information now or hereafter required to be filed by such Pledgor with the United States Securities and Exchange Commission and any other state, federal or foreign agency in connection with the ownership of the Pledged Collateral of such Pledgor.

 

(f)            Issuance or Acquisition of Capital Stock.  Not, without executing and delivering, or causing to be executed and delivered, to the Administrative Agent such agreements, documents and instruments as the Administrative Agent may reasonably request for the purpose of perfecting its security interest therein, issue or acquire any Capital Stock constituting Pledged Collateral consisting of an interest in a partnership or a limited liability company that (i) is dealt in or traded on a securities exchange or in a securities market, (ii) by its terms expressly provides that it is a security governed by Article 8 of the UCC, (iii) is an investment company security, (iv) is held in a Securities Account or (v) constitutes a Security or a Financial Asset.

 

7.             Advances by Holders of the Secured Obligations.  On failure of any Pledgor to perform any of the covenants and agreements contained herein, the Administrative Agent may, at its sole option and in its sole discretion, upon notice to the Pledgors, perform the same and in so doing may expend such sums as the Administrative Agent may reasonably deem advisable in the performance thereof, including, without limitation, the payment of any insurance premiums, the payment of any taxes, a payment to obtain a release of a Lien or potential Lien (other than a Permitted Lien), expenditures made in defending against any adverse claim and all other expenditures that the Administrative Agent or the holders of the Secured Obligations may make for the protection of the security hereof or may be compelled to make by operation of law.  All such sums and amounts so expended shall be repayable by the Pledgors on a joint and several basis (subject to Section 24 hereof) promptly upon timely notice thereof and demand therefor, shall constitute additional Secured Obligations and shall bear interest from the date said amounts are expended at the Default Rate.  No such performance of any covenant or agreement by the Administrative Agent or the holders of the Secured Obligations on behalf of any Pledgor, and no such advance or expenditure therefor, shall relieve the Pledgors of any default under the terms of this Domestic Pledge Agreement, the other Loan Documents or any other documents relating to the Secured Obligations.  The holders of the Secured Obligations may make any payment hereby authorized in accordance with any bill, statement or estimate procured from the appropriate public office or holder of the claim to be discharged without inquiry into the accuracy of such bill, statement or estimate or into the validity of any tax assessment, sale, forfeiture, tax lien, title or claim except to the extent such payment is being contested in good faith by a Pledgor in appropriate proceedings and against which adequate reserves are being maintained in accordance with GAAP.

 

8.             Remedies.

 

(a)           General Remedies.  Upon the occurrence of an Event of Default and during the continuation thereof, the Administrative Agent shall have, in addition to the rights and remedies provided herein, in the Loan Documents, in any other documents relating to the Secured Obligations, or by law (including, without limitation, levy of attachment and garnishment), the rights and remedies of a secured party under the UCC of the jurisdiction applicable to the affected Pledged Collateral.

 

(b)           Sale of Pledged Collateral.  Upon the occurrence of an Event of Default and during the continuation thereof, without limiting the generality of this Section 8 and, except as provided below, without notice, the Administrative Agent may, in its sole discretion, sell or otherwise dispose of or realize upon the Pledged Collateral, or any part thereof, in one or more parcels, at public or private sale, at any exchange or broker’s board or elsewhere, at such price or prices and on such other terms as the Administrative Agent may deem commercially reasonable, for cash, credit or for future delivery or otherwise in accordance with applicable law.  To the extent permitted by law, any holder of the Secured Obligations may in such event, bid for the purchase of such securities.  Each Pledgor agrees that, to the 

 

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extent notice of sale shall be required by law and has not been waived by such Pledgor, any requirement of reasonable notice shall be met if notice, specifying the place of any public sale or the time after which any private sale is to be made, is personally served on or mailed, postage prepaid, to such Pledgor, in accordance with the notice provisions of Section 11.02 of the Credit Agreement at least ten days before the time of such sale.  The Administrative Agent shall not be obligated to make any sale of Pledged Collateral of such Pledgor regardless of notice of sale having been given.  The Administrative Agent may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned.

 

(c)           Private Sale.  Upon the occurrence of an Event of Default and during the continuation thereof, the Pledgors recognize that the Administrative Agent may deem it impracticable to effect a public sale of all or any part of the Pledged Shares or any of the securities constituting Pledged Collateral and that the Administrative Agent may, therefore, determine to make one or more private sales of any such Pledged Collateral to a restricted group of purchasers who will be obligated to agree, among other things, to acquire such Pledged Collateral for their own account, for investment and not with a view to the distribution or resale thereof.  Each Pledgor acknowledges that any such private sale may be at prices and on terms less favorable to the seller than the prices and other terms that might have been obtained at a public sale and, notwithstanding the foregoing, agrees that such private sale shall be deemed to have been made in a commercially reasonable manner and that the Administrative Agent shall have no obligation to delay sale of any such Pledged Collateral for the period of time necessary to permit the issuer of such Pledged Collateral to register such Pledged Collateral for public sale under the Securities Act.  Each Pledgor further acknowledges and agrees that any offer to sell such Pledged Collateral that has been (i) publicly advertised on a bona fide basis in a newspaper or other publication of general circulation in the financial community of New York, New York (to the extent that such offer may be advertised without prior registration under the Securities Act), or (ii) made privately in the manner described above shall be deemed to involve a “public sale” under the UCC, notwithstanding that such sale may not constitute a “public offering” under the Securities Act, and the Administrative Agent may, in such event, bid for the purchase of such Pledged Collateral.

 

(d)           Retention of Pledged Collateral.  To the extent permitted under applicable law, in addition to the rights and remedies hereunder, upon the occurrence and during the continuation of an Event of Default, the Administrative Agent may, after providing the notices required by Sections 9-620 and 9-621 of the UCC or otherwise complying with the requirements of applicable law of the relevant jurisdiction, accept or retain all or any portion of the Pledged Collateral in satisfaction of the Secured Obligations.  Unless and until the Administrative Agent shall have provided such notices, however, the Administrative Agent shall not be deemed to have accepted or retained any Pledged Collateral in satisfaction of any Secured Obligations for any reason.

 

(e)           Deficiency.  In the event that the proceeds of any sale, collection or realization are insufficient to pay all amounts to which the Administrative Agent or the holders of the Secured Obligations are legally entitled, the Pledgors shall be jointly and severally liable (subject to Section 24 hereof) for the deficiency, together with interest thereon at the Default Rate, together with the costs of collection and Attorney Costs.  Any surplus remaining after the full payment and satisfaction of the Secured Obligations shall be returned to the Pledgors or to whomsoever a court of competent jurisdiction shall determine to be entitled thereto.

 

9.             Rights of the Administrative Agent.

 

(a)           Power of Attorney.  In addition to other powers of attorney contained herein, each Pledgor hereby designates and appoints the Administrative Agent, on behalf of the holders of the Secured Obligations, and each of its designees or agents, as attorney-in-fact of such Pledgor, irrevocably and with 

 

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power of substitution, with authority to take any or all of the following actions upon the occurrence and during the continuation of an Event of Default:

 

(i)            to demand, collect, settle, compromise and adjust, and give discharges and releases concerning the Pledged Collateral, all as the Administrative Agent may reasonably deem appropriate;

 

(ii)           to commence and prosecute any actions at any court for the purposes of collecting any of the Pledged Collateral and enforcing any other right in respect thereof;

 

(iii)          to defend, settle or compromise any action brought and, in connection therewith, give such discharge or release as the Administrative Agent may reasonably deem appropriate;

 

(iv)          to pay or discharge taxes, liens, security interests or other encumbrances levied or placed on or threatened against the Pledged Collateral;

 

(v)           to direct any parties liable for any payment in connection with any of the Pledged Collateral to make payment of any and all monies due and to become due thereunder directly to the Administrative Agent or as the Administrative Agent shall direct;

 

(vi)          to receive payment of and receipt for any and all monies, claims, and other amounts due and to become due at any time in respect of or arising out of any Pledged Collateral;

 

(vii)         to sign and endorse any drafts, assignments, proxies, stock powers, verifications, notices and other documents relating to the Pledged Collateral;

 

(viii)        to execute and deliver all assignments, conveyances, statements, financing statements, renewal financing statements, security and pledge agreements, affidavits, notices and other agreements, instruments and documents that the Administrative Agent may reasonably deem appropriate in order to perfect and maintain the security interests and liens granted in this Domestic Pledge Agreement and in order to fully consummate all of the transactions contemplated therein;

 

(ix)           to exchange any of the Pledged Collateral or other property upon any merger, consolidation, reorganization, recapitalization or other readjustment of the issuer thereof and, in connection therewith, deposit any of the Pledged Collateral with any committee, depository, transfer agent, registrar or other designated agency upon such terms as the Administrative Agent may reasonably deem appropriate;

 

(x)            to vote for a shareholder resolution, or to sign an instrument in writing, sanctioning the transfer of any or all of the Pledged Collateral into the name of the Administrative Agent or one or more of the holders of the Secured Obligations or into the name of any transferee to whom the Pledged Collateral or any part thereof may be sold pursuant to Section 8 hereof; and

 

(xi)           to do and perform all such other acts and things as the Administrative Agent may reasonably deem appropriate in connection with the Pledged Collateral.

 

This power of attorney is a power coupled with an interest and shall be irrevocable for so long as any of the Secured Obligations shall remain outstanding and until all of the commitments relating thereto shall have been terminated.  The Administrative Agent shall be under no duty to exercise or withhold the exercise of any of the rights, powers, privileges and options expressly or implicitly granted to the 

 

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Administrative Agent in this Domestic Pledge Agreement, and shall not be liable for any failure to do so or any delay in doing so.  The Administrative Agent shall not be liable for any act or omission or for any error of judgment or any mistake of fact or law in its individual capacity or its capacity as attorney-in-fact except acts or omissions resulting from its gross negligence or willful misconduct.  This power of attorney is conferred on the Administrative Agent solely to protect, preserve and realize upon its security interest in the Pledged Collateral.

 

(b)           Performance by the Administrative Agent of Obligations.  If any Pledgor fails to perform any agreement or obligation contained herein following a written request from the Administrative Agent to do so, the Administrative Agent itself may perform, or cause performance of, such agreement or obligation, and the expenses of the Administrative Agent incurred in connection therewith shall be payable by the Pledgors on a joint and several basis pursuant to Section 24 hereof.

 

(c)           Assignment by the Administrative Agent.  The Administrative Agent may from time to time assign the Pledged Collateral and any portion thereof to a successor agent in accordance with the Credit Agreement, and the assignee shall be entitled to all of the rights and remedies of the Administrative Agent under this Domestic Pledge Agreement in relation thereto.

 

(d)           The Administrative Agent’s Duty of Care.  Other than the exercise of reasonable care to assure the safe custody of the Pledged Collateral while being held by the Administrative Agent hereunder, the Administrative Agent shall have no duty or liability to preserve rights pertaining thereto, it being understood and agreed that the applicable Pledgors shall be responsible for preservation of all rights in the Pledged Collateral, and the Administrative Agent shall be relieved of all responsibility for the Pledged Collateral upon surrendering it or tendering the surrender of it to the applicable Pledgors.  The Administrative Agent shall be deemed to have exercised reasonable care in the custody and preservation of the Pledged Collateral in its possession if such Pledged Collateral is accorded treatment substantially equal to that which the Administrative Agent accords its own property, which shall be no less than the treatment employed by a reasonable and prudent agent in the industry, it being understood that the Administrative Agent shall not have responsibility for (i) ascertaining or taking action with respect to calls, conversions, exchanges, maturities, tenders or other matters relating to any Pledged Collateral, whether or not the Administrative Agent has or is deemed to have knowledge of such matters, or (ii) taking any necessary steps to preserve rights against any parties with respect to any of the Pledged Collateral.

 

(e)           Voting Rights in Respect of the Pledged Collateral.

 

(i)            To the extent permitted by law, each Pledgor may exercise any and all voting and other consensual rights pertaining to the Pledged Collateral of such Pledgor or any part thereof for any purpose not inconsistent with the terms of this Domestic Pledge Agreement or the Credit Agreement until (A) such time as an Event of Default shall have occurred and be continuing and (B) the Administrative Agent has accelerated payment of the Loans pursuant to the Credit Agreement; and

 

(ii)           If an Event of Default has occurred and is continuing and the Administrative Agent has accelerated payment of the Loans as contemplated in subparagraph (e)(i) above, all rights of a Pledgor to exercise the voting and other consensual rights that it would otherwise be entitled to exercise pursuant to paragraph (i) of this subsection shall cease during the existence of such Event of Default and all such rights shall thereupon become vested in the Administrative Agent, which shall then during the continuance of such Event of Default have the sole right to exercise such voting and other consensual rights.

 

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(f)            Dividend Rights in Respect of the Pledged Collateral.

 

(i)            Subject to Section 4(b) hereof, each Pledgor may receive and retain any and all dividends (other than stock dividends and other dividends constituting Pledged Collateral addressed hereinabove) or interest paid in respect of the Pledged Collateral to the extent they are allowed under the Credit Agreement until (A) such time as an Event of Default shall have occurred and be continuing and (B) the Administrative Agent has accelerated payment of the Loans pursuant to the Credit Agreement.

 

(ii)           If an Event of Default has occurred and is continuing and the Administrative Agent has accelerated payment of the Loans as contemplated in subparagraph (f)(i) above:

 

(A)          all rights of a Pledgor to receive the dividends and interest payments that it would otherwise be authorized to receive and retain pursuant to paragraph (i) of this subsection shall cease during the existence of such Event of Default and all such rights shall thereupon be vested in the Administrative Agent, which shall then during the continuance of such Event of Default have the sole right to receive and hold as Pledged Collateral such dividends and interest payments; and

 

(B)           all dividends and interest payments that are received by a Pledgor contrary to the provisions of paragraph (A) of this subsection shall be received in trust for the benefit of the Administrative Agent, shall be segregated from other property or funds of such Pledgor, and shall be forthwith paid over to the Administrative Agent as Pledged Collateral in the exact form received, to be held by the Administrative Agent as Pledged Collateral and as further collateral security for the Secured Obligations.

 

(g)           Release of Pledged Collateral.  Subject to the terms of Section 11.01(g) of the Credit Agreement, the Administrative Agent may release any of the Pledged Collateral from this Domestic Pledge Agreement or may substitute any of the Pledged Collateral for other Pledged Collateral without altering, varying or diminishing in any way the force, effect, lien, pledge or security interest of this Domestic Pledge Agreement as to any Pledged Collateral not expressly released or substituted, and this Domestic Pledge Agreement shall continue as a first priority lien on all Pledged Collateral not expressly released or substituted.

 

10.           Rights of Required Lenders.  All rights of the Administrative Agent hereunder, if not exercised by the Administrative Agent, may be exercised by the Required Lenders.  If such rights are so exercised by the Required Lenders, then the Required Lenders shall have all of the rights, privileges and indemnities afforded the Administrative Agent in the exercise of such rights.

 

11.           Application of Proceeds.  Upon the occurrence and during the continuation of an Event of Default, any payments in respect of the Secured Obligations and any proceeds of the Pledged Collateral, when received by the Administrative Agent or any of the holders of the Secured Obligations in cash or its equivalent, will be applied in reduction of the Secured Obligations in the order set forth in the Credit Agreement or other document relating to the Secured Obligations, and each Pledgor irrevocably waives the right to direct the application of such payments and proceeds and acknowledges and agrees that the Administrative Agent shall have the continuing and exclusive right to apply any and all such payments and proceeds to payment of the Secured Obligations, in each case in accordance with the terms of Section 9.03 of the Credit Agreement.

 

10

 

12.           Continuing Agreement.

 

(a)           This Domestic Pledge Agreement shall be a continuing agreement in every respect and shall remain in full force and effect so long as any of the Secured Obligations remains outstanding and until all of the commitments relating thereto have been terminated (other than any obligations with respect to the indemnities set forth in the Loan Documents).  Upon such payment and termination, this Domestic Pledge Agreement shall be automatically terminated and the Administrative Agent and the holders of the Secured Obligations shall, upon the request and at the expense of the Pledgors, forthwith release all of its liens and security interests hereunder and shall execute and deliver all UCC termination statements and/or other documents reasonably requested by the Pledgors evidencing such termination.  Notwithstanding the foregoing, all releases and indemnities provided hereunder shall survive termination of this Domestic Pledge Agreement.

 

(b)           This Domestic Pledge Agreement shall continue to be effective or be automatically reinstated, as the case may be, if at any time payment, in whole or in part, of any of the Secured Obligations is rescinded or must otherwise be restored or returned by the Administrative Agent or any holder of the Secured Obligations as a preference, fraudulent conveyance or otherwise under any bankruptcy, insolvency or similar law, all as though such payment had not been made; provided that in the event payment of all or any part of the Secured Obligations is rescinded or must be restored or returned, all reasonable costs and expenses (including Attorney Costs) incurred by the Administrative Agent or any holder of the Secured Obligations in defending and enforcing such reinstatement shall be deemed to be included as a part of the Secured Obligations.

 

13.           Amendments and Waivers.  This Domestic Pledge Agreement and the provisions hereof may not be amended, waived, modified, changed, discharged or terminated except as set forth in Section 11.01 of the Credit Agreement.

 

14.           Successors in Interest.  This Domestic Pledge Agreement shall create a continuing security interest in the Collateral and shall be binding upon each Pledgor, its successors and assigns, and shall inure, together with the rights and remedies of the Administrative Agent and the holders of the Secured Obligations hereunder, to the benefit of the Administrative Agent and the holders of the Secured Obligations and their successors and permitted assigns; provided, however, that, except as provided in the Credit Agreement, none of the Pledgors may assign its rights or delegate its duties hereunder without the prior written consent of the requisite Lenders under the Credit Agreement.  To the fullest extent permitted by law, each Pledgor hereby releases the Administrative Agent and each holder of the Secured Obligations, and their respective successors and assigns, and their respective officers, employees or agents from any liability for any act or omission relating to this Domestic Pledge Agreement or the Collateral, except for any liability arising from the gross negligence or willful misconduct of the Administrative Agent or such holder, or their respective officers, employees or agents.

 

15.           Notices.  All notices required or permitted to be given under this Domestic Pledge Agreement shall be given as provided in Section 11.02 of the Credit Agreement.

 

16.           Counterparts.  This Domestic Pledge Agreement may be executed in any number of counterparts, each of which where so executed and delivered shall be an original, but all of which shall constitute one and the same instrument.  It shall not be necessary in making proof of this Domestic Pledge Agreement to produce or account for more than one such counterpart.

 

17.           Headings.  The headings of the sections and subsections hereof are provided for convenience only and shall not in any way affect the meaning or construction of any provision of this Domestic Pledge Agreement.

 

11

 

18.           Governing Law; Submission to Jurisdiction; Venue.

 

(a)           THIS DOMESTIC PLEDGE AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE;  PROVIDED THAT THE ADMINISTRATIVE AGENT SHALL RETAIN ALL RIGHTS ARISING UNDER FEDERAL LAW.

 

(b)           ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS DOMESTIC PLEDGE AGREEMENT OR ANY OTHER LOAN DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK, NEW YORK OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF SUCH STATE, AND BY EXECUTION AND DELIVERY OF THIS DOMESTIC PLEDGE AGREEMENT, EACH PLEDGOR AND THE ADMINISTRATIVE AGENT, ON BEHALF OF ITSELF AND EACH LENDER, CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE COURTS. EACH PLEDGOR AND THE ADMINISTRATIVE AGENT, ON BEHALF OF ITSELF AND EACH LENDER, IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF THIS DOMESTIC PLEDGE AGREEMENT OR ANY OTHER LOAN DOCUMENT OR OTHER DOCUMENT RELATED THERETO. EACH PLEDGOR AND THE ADMINISTRATIVE AGENT, ON BEHALF OF ITSELF AND EACH LENDER, WAIVES PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER PROCESS, WHICH MAY BE MADE BY ANY OTHER MEANS PERMITTED BY THE LAW OF SUCH STATE.

 

19.           Waiver of Right to Trial by Jury.

 

EACH PARTY TO THIS DOMESTIC PLEDGE AGREEMENT HEREBY EXPRESSLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER THIS DOMESTIC PLEDGE AGREEMENT OR ANY OTHER LOAN DOCUMENT OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO THIS DOMESTIC PLEDGE AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR THE TRANSACTIONS RELATED THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER FOUNDED IN CONTRACT OR TORT OR OTHERWISE; AND EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO THIS DOMESTIC PLEDGE AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE SIGNATORIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.  EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS DOMESTIC PLEDGE AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

12

 

20.           Severability.  If any provision of this Domestic Pledge Agreement is determined to be illegal, invalid or unenforceable, such provision shall be fully severable and the remaining provisions shall remain in full force and effect and shall be construed without giving effect to the illegal, invalid or unenforceable provisions.

 

21.           Entirety.  This Domestic Pledge Agreement, the other Loan Documents and the other documents relating to the Secured Obligations represent the entire agreement of the parties hereto and thereto, and supersede all prior agreements and understandings, oral or written, if any, including any commitment letters or correspondence relating to the Loan Documents, any other documents relating to the Secured Obligations, or the transactions contemplated herein and therein.

 

22.           Survival.  All representations and warranties of the Pledgors hereunder shall survive the execution and delivery of this Domestic Pledge Agreement, the other Loan Documents and the other documents relating to the Secured Obligations, the delivery of the Notes and the extension of credit thereunder or in connection therewith.

 

23.           Other Security.  To the extent that any of the Secured Obligations are now or hereafter secured by property other than the Pledged Collateral (including, without limitation, real and other personal property owned by a Pledgor), or by a guarantee, endorsement or property of any other Person, then the Administrative Agent shall have the right to proceed against such other property, guarantee or endorsement upon the occurrence of any Event of Default, and the Administrative Agent shall have the right, in its sole discretion, to determine which rights, security, liens, security interests or remedies the Administrative Agent shall at any time pursue, relinquish, subordinate, modify or take with respect thereto, without in any way modifying or affecting any of them or the Secured Obligations or any of the rights of the Administrative Agent or the holders of the Secured Obligations under this Domestic Pledge Agreement, under any of the other Loan Documents or under any other document relating to the Secured Obligations.

 

24.           Joint and Several Obligations of Pledgors.

 

(a)           Each of the Pledgors is accepting joint and several liability hereunder in consideration of the financial accommodation to be provided by the holders of the Secured Obligations, for the mutual benefit, directly and indirectly, of each of the Pledgors and in consideration of the undertakings of each of the Pledgors to accept joint and several liability for the obligations of each of them.

 

(b)           Each of the Pledgors jointly and severally hereby irrevocably and unconditionally accepts, not merely as a surety but also as a co-debtor, joint and several liability with the other Pledgors with respect to the payment and performance of all of the Secured Obligations arising under this Domestic Pledge Agreement, the other Loan Documents and any other documents relating to the Secured Obligations, it being the intention of the parties hereto that all the Secured Obligations shall be the joint and several obligations of each of the Pledgors without preferences or distinction among them.

 

(c)           Notwithstanding any provision to the contrary contained herein, in any other of the Loan Documents or in any other documents relating to the Secured Obligations, the obligations of each Guarantor under the Credit Agreement, the other Loan Documents and the documents relating to the Secured Obligations shall be limited to an aggregate amount equal to the largest amount that would not render such obligations subject to avoidance under Section 548 of the Bankruptcy Code or any comparable provisions of any applicable state law.

 

[Signature Pages Follow]

 

13

 

Each of the parties hereto has caused a counterpart of this Domestic Pledge Agreement to be duly executed and delivered as of the date first above written.

 

	
PLEDGORS:
    	
GFI   GROUP INC.,
    
	
 
    	
a   Delaware corporation
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
GFI   GROUP LLC,
    
	
 
    	
a   New York limited liability company
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
GFINET   INC.,
    
	
 
    	
a   Delaware corporation
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
GFI BROKERS LLC,
    
	
 
    	
a   Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
INTERACTIVE VENTURES LLC,
    
	
 
    	
a Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
FENICS   SOFTWARE INC.,
    
	
 
    	
a   Delaware corporation
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
AMEREX   BROKERS LLC,
    
	
 
    	
a Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
				

 

 

Accepted and agreed to as of the date first above written.

 

BANK OF AMERICA, N.A., as Administrative Agent

 

	
By:
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    

 

 

Exhibit 4(a)

 

Form of Irrevocable Stock Power

 

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers to

 

 

the following shares of capital stock of                                         , a                                                      :

 

	
Number of Shares
    	
 
    	
Certificate Number
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    

 

and irrevocably appoints                                                                      its agent and attorney-in-fact to transfer all or any part of such capital stock and to take all necessary and appropriate action to effect any such transfer.  The agent and attorney-in-fact may substitute and appoint one or more persons to act for him.

 

	
 
    	
[HOLDER]
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:Exhibit 10.4

 

 

 

Mortgage of shares

 

 

Dated

 

 

GFI Holdings Limited

(as Chargor)

 

Bank of America, N.A.

(as Administrative Agent)

 

 

SNR Denton UK LLP

One Fleet Place

London EC4M 7WS

United Kingdom

DX 242

 

ii

 

Contents

 

	
1.
    	
 
    	
Interpretation
    	
 
    	
1
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
2.
    	
 
    	
Security
    	
 
    	
4
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
3.
    	
 
    	
Preservation of Security
    	
 
    	
4
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
4.
    	
 
    	
Warranties and Undertaking
    	
 
    	
6
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
5.
    	
 
    	
Documents and Registration
    	
 
    	
7
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
6.
    	
 
    	
Application of Proceeds
    	
 
    	
8
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
7.
    	
 
    	
Power of Attorney
    	
 
    	
9
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
8.
    	
 
    	
Protection of Purchaser
    	
 
    	
9
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
9.
    	
 
    	
Delegation
    	
 
    	
9
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
10.
    	
 
    	
Indemnity
    	
 
    	
10
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
11.
    	
 
    	
Waivers; Remedies Cumulative
    	
 
    	
10
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
12.
    	
 
    	
Further Assurance
    	
 
    	
10
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
13.
    	
 
    	
Notices
    	
 
    	
10
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
14.
    	
 
    	
Miscellaneous
    	
 
    	
11
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
15.
    	
 
    	
Release
    	
 
    	
12
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
16.
    	
 
    	
Governing Law and   Jurisdiction
    	
 
    	
12
    

 

iii

 

Mortgage of Shares

 

Dated

 

Between

 

(1)                        GFI Holdings Limited,  a limited liability company registered in England and Wales with company number 03405222  (the “Chargor”); and

 

(2)                        Bank of America, N.A. as agent and trustee for the Secured Parties (the “Administrative Agent” which expression shall include all successor Administrative Agents appointed from time to time).

 

Recitals

 

(A)                    The Chargor enters into this Deed to secure the repayment and satisfaction of the Secured Liabilities.

 

(B)                      The Chargor and the Administrative Agent intend that this document take effect as a deed notwithstanding that it may be executed under hand.

 

IT IS AGREED as follows:

 

1.                           INTERPRETATION

 

1.1                       Definitions

 

In this Deed:

 

Affiliate is defined in the Credit Agreement.

 

Companies means:

 

(i)                     GFInet Europe Limited, a limited liability company incorporated in England and Wales with company number 03996781;

 

(ii)                  GFI Markets Limited, a limited liability company incorporated in England and Wales with company number 07129437; and

 

(iii)               Fenics Limited, a limited liability company incorporated in England and Wales with company number 03027028,

 

and Company means either one of them.

 

Credit Agreement means that certain Amended and Restated Credit Agreement dated as of February 24, 2006 among GFI Group, Inc., a Delaware corporation, GFI Holdings Limited, a company incorporated in England and Wales, the Guarantors party thereto, the Lenders party thereto and Bank of America, N.A., as Administrative Agent, relating to the amendment and restatement of a credit agreement entered into as of August 23, 2004 and as the same may be further amended, modified, supplemented, extended, restated and replaced from time to time.

 

Debtor Relief Laws is defined in the Credit Agreement.

 

1

 

Domestic Security Agreement is defined in the Credit Agreement.

 

Enforcement Event means the acceleration of the payment of Loans pursuant to the Credit Agreement in accordance with the terms thereof.

 

Event of Default has the meaning given to that term in the Credit Agreement.

 

Foreign Loan Party is defined in the Credit Agreement.

 

Lenders is defined in the Credit Agreement.

 

Letter of Credit is defined in the Credit Agreement.

 

Loan is defined in the Credit Agreement.

 

Loan Documents is defined in the Credit Agreement.

 

Loan Party is defined in the Credit Agreement.

 

Related Rights means, in relation to the Shares, all dividends and other distributions paid or payable after today’s date on all or any of the Shares and all stocks, shares, securities (and the dividends or interest on them), rights, money or property accruing or offered at any time by way of redemption, bonus, preference, option rights or otherwise to or in respect of any of the Shares or in substitution or exchange for any of the Shares.

 

Secured Liabilities means all advances to, and debts, liabilities, obligations, covenants and duties of, any Foreign Loan Party arising under any Loan Document or otherwise with respect to any Loan or Letter of Credit, whether direct or indirect (including those acquired by assumption), actual or contingent, due or to become due, now existing or hereafter arising and including interest and fees that accrue after the commencement by or against any Foreign Loan Party of any proceeding under any Debtor Relief Laws naming such person as the debtor in such proceeding, regardless of whether such interest and fees are allowed claims in such proceeding.  The foregoing shall also include debts, liabilities, obligations, covenants and duties arising under any Swap Contract between any Foreign Loan Party and any Lender or Affiliate of a Lender and all obligations under any Treasury Management Agreement between any Foreign Loan Party and any Lender or an Affiliate of a Lender, except for any obligation which, if it were so included, would result in a contravention of Chapter 2 of Part 18 of the Companies Act 2006.

 

Secured Parties means the Lenders, the Administrative Agent and any other holder of Secured Liabilities.

 

Security Assets means the Shares together with all Related Rights in respect of the Shares.

 

Security Period means the period beginning on the date of this Deed and ending on the date on which the Secured Liabilities have been satisfied in full (other than any obligations with respect to the indemnities set forth in the Loan Documents and/or collateralized letters of credit) and the commitments under the Credit Agreement shall have terminated or expired.

 

Shares means:

 

2

 

(i)                     4,000,201 ordinary shares of $1.00 each issued and fully paid in the share capital of GFInet Europe Limited;

 

(ii)                  33,602,410 ordinary shares of £1 each issued and fully paid in the share capital of GFI Markets Limited; and

 

(iii)               4,599,097 preference shares of £0.01 each, 2,537,820 “A” ordinary shares of £0.10 each and 3,053,394 ordinary shares of £0.10 each issued and fully paid in the share capital of Fenics Limited,

 

together with 100% of any voting shares and 100% of any other shares in the capital of each Company, in each case, which may be owned legally, beneficially or otherwise by the Chargor after the date of this Deed.

 

Swap Contract is defined in the Credit Agreement.

 

Treasury Management Agreement is defined in the Credit Agreement.

 

1.2                     Construction

 

(a)                        In this Deed, unless the contrary intention appears, a reference to:

 

(i)                     assets includes properties, revenues and rights of every description, both present and future;

 

(ii)                  an authorisation or a consent includes an approval, authorisation, consent, exemption, filing, licence, registration and resolution, in each case given or made in writing;

 

(iii)               an enactment (be it express or implied) includes references to any amendment, re-enactment, and/or legislation subordinate to that enactment and/or any permission of whatever kind given under that enactment;

 

(iv)              a Loan Document or any other agreement or instrument is a reference to that Loan Document or other agreement or instrument as amended, novated, supplemented or replaced (in whole or in part);

 

(v)                 any party or person includes any person deriving title from it or any successor, transferee or assignee;

 

(vi)              a person includes any person, firm, company, corporation, government, state or agency of a state or any association, trust or partnership (whether or not having separate legal personality) or two or more of the foregoing;

 

(vii)           Clauses are to the clauses of this Deed; and

 

(viii)        a person who is not a party to this Deed (other than a Lender) has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce or enjoy the benefit of any term of this Deed but this does not affect any right or remedy of a third party which exists or is available apart from that Act.

 

(b)                       In the event of any conflict between the provisions of this Deed and the Credit Agreement the provisions of the Credit Agreement shall prevail

 

3

 

2.                           SECURITY

 

2.1                     Mortgage

 

In consideration of the Administrative Agent and the Lenders entering into the Credit Agreement, the Chargor in the manner specified in Clause 2.2 of this Deed and as security for the Secured Liabilities:

 

(a)                        mortgages and agrees to mortgage to the Administrative Agent (as agent and trustee for the Secured Parties) all of the Shares, the same to be a security by way of a first equitable mortgage; and

 

(b)                       mortgages and agrees to mortgage to the Administrative Agent (as agent and trustee for the Secured Parties) all the Related Rights accruing to all or any of the Shares, the same to be a security by way of a first equitable mortgage,

 

PROVIDED THAT:

 

(i)                     until the occurrence of an Enforcement Event, all dividends and other distributions mortgaged as Related Rights pursuant to paragraph (b) above may be paid directly to the Chargor (in which case the Administrative Agent or its nominee shall execute any necessary dividend mandate) and, if paid directly to the Administrative Agent shall be paid promptly by it to the Chargor; and

 

(ii)                  subject to paragraph (c) of Clause 5, until the occurrence of an Enforcement Event, all voting rights attaching to the Shares may be exercised by the Chargor or, where the Shares have been registered in the name of the Administrative Agent or its nominee, as the Chargor may direct in writing, and the Administrative Agent and any nominee of the Administrative Agent in whose name the Shares are registered shall execute any form of proxy or other document reasonably required in order for the Chargor to do so.

 

2.2                     Title Guarantee

 

Every disposition effected by this Deed is made with full title guarantee.  The other terms of this Deed do not limit or extend any of the covenants implied by virtue of Part 1 of the Law of Property (Miscellaneous Provisions) Act 1994 but create separate and independent obligations having effect cumulatively with those implied covenants.

 

2.3                     Excluded Collateral

 

Notwithstanding anything to the contrary contained in this Clause 2, the mortgage and charge of the Security Assets granted under this Clause 2 shall not extend to any assets expressly excluded from section 2 of the Domestic Security Agreement as applicable.

 

3.                           PRESERVATION OF SECURITY

 

3.1                     Continuing Security etc.

 

The security constituted by this Deed:

 

(a)                        shall be a continuing security and shall not be satisfied by any intermediate payment or satisfaction of the whole or any part of the Secured Liabilities but shall secure the ultimate balance of the Secured Liabilities; and

 

4

 

(b)                       shall be in addition to and shall not be affected by any other security interest now or subsequently held by the Administrative Agent for all or any of the Secured Liabilities.

 

3.2                     No Merger of Security

 

No prior security held by the Administrative Agent (whether in its capacity as Administrative Agent or otherwise) or any of the other Secured Parties over the whole or any part of the Security Assets shall merge into the security constituted by this Deed.

 

3.3                     Obligations not affected

 

Neither the obligations of the Chargor under this Deed nor the security constituted by this Deed shall be affected by any act, omission or circumstances which but for this provision might operate to release or otherwise exonerate the Chargor from its obligations under this Deed or affect such obligations or security including (but without limitation) and whether or not known to the Chargor or the Administrative Agent or any other Secured Party:

 

(a)                        any time or indulgence granted to or composition with the Chargor or any Loan Party or any other person;

 

(b)                       the variation, extension, compromise, renewal or release of, or refusal or neglect to perfect or enforce, any terms of any Loan Document or any rights or remedies against, or any security granted by, the Chargor, any Loan Party or any other person;

 

(c)                        any irregularity, invalidity or unenforceability of any obligations of the Chargor or any Loan Party under the Loan Documents or any other document or agreement or any present or future law or order of any government or authority (whether of right or in fact) purporting to reduce or otherwise affect any of such obligations to the intent that the Charger’s obligations under this Deed and this security shall remain in full force and this Deed shall be construed accordingly as if there were no such irregularity, unenforceability, invalidity, law or order;

 

(d)                       any legal limitation, disability, incapacity or other circumstances relating to the Chargor, any Loan Party or any other person or any amendment to or variation of the terms of any Loan Document or any other document or security.

 

3.4                     Waiver by Chargor

 

The Chargor waives any right it may have of first requiring the Administrative Agent or any other Secured Party to proceed against or claim payment from any person or enforce any guarantee or security before enforcing this Deed.

 

3.5                     Certificate of Administrative Agent conclusive

 

A certificate of the Administrative Agent as to the amount of the Secured Liabilities shall, as against the Chargor, be conclusive evidence of such amount in the absence of manifest error.

 

3.6                     Reinstatement

 

Where any discharge (whether in respect of this Deed, any other security or otherwise) is made in whole or in part or any arrangement is made on the faith of any payment, security or other disposition which is avoided or must be repaid on bankruptcy, liquidation or otherwise without limitation, this security and the liability of the Chargor under this Deed shall continue as if there had been no such discharge or arrangement.

 

5

 

4.                           WARRANTIES AND UNDERTAKING

 

4.1                     Warranties

 

Except as otherwise provided in the Credit Agreement, the Chargor represents and warrants to the Secured Parties that:

 

(a)                        it is and will remain the sole beneficial owner of its Security Assets and, save where the Security Assets have been registered in the name of the Administrative Agent (as agent and trustee on behalf of itself and the Secured Parties) or its nominee pursuant to this Deed, is and will remain the absolute legal owner of its Security Assets save to the extent permitted to be disposed of or encumbered under the Loan Documents;

 

(b)                       it will not take any action whereby the rights attaching to its Security Assets are altered or diluted in a manner adverse to the interests of the Administrative Agent or the other Secured Parties hereunder save to the extent permitted under the Loan Documents;

 

(c)                        the Shares are fully paid and non-assessable (except as such rights may arise under mandatory provisions of applicable statutory law that may not be waived or otherwise agreed and not as a result of any rights contained in any organisational document) and neither the Shares nor the Related Rights are subject to any options to purchase or similar rights of any person;

 

(d)                       the Shares include and will continue to include all of the issued share capital of each Company owned by the Chargor,

 

(e)                        the execution and delivery of this Deed and the creation of the security contemplated by it will not contravene any restriction to which the Chargor, any Company or the Security Assets are subject;

 

(f)                          this Deed constitutes the legal, valid and binding obligations of the Chargor, enforceable in accordance with its terms, subject to laws affecting creditors’ rights generally and general principles of equity; and

 

(g)                       the Chargor is duly incorporated under the laws of Singapore and has the full power and authority (and has taken all necessary corporate authorisations) to execute this Deed and comply with its obligations under this Deed.

 

4.2                       Undertakings

 

Except as otherwise provided in the Credit Agreement the Chargor undertakes to the Secured Parties that:

 

(a)                        it will not assign, pledge or otherwise encumber the whole or any part of the Security Assets to anyone other than the Administrative Agent (as agent and trustee for the Secured Parties) and other than as permitted under the Loan Documents;

 

(b)                       it will not take or permit the taking of any action whereby the rights attaching to any of the Security Assets or any other shares in any Company are altered or further shares in any Company are issued other than as permitted under the Loan Documents.

 

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5.                           DOCUMENTS AND REGISTRATION

 

5.1                     Deposit of securities and registration

 

(a)                        The Chargor shall forthwith deposit with the Administrative Agent (as agent and trustee for the Secured Parties) or as the Administrative Agent may direct all bearer instruments, share certificates and other documents of title or evidence of ownership in relation to the Shares and their Related Rights and shall execute and deliver to the Administrative Agent all such share transfers and other documents as may reasonably be requested by the Administrative Agent in order to enable the Administrative Agent or its nominees to be registered as the owner or otherwise to obtain a legal title to the same (in each case, for the purpose of the mortgage and charge under this Deed) and, without limiting the generality of the foregoing shall (for such purpose) deliver to the Administrative Agent (as agent and trustee for itself and the Secured Parties) on today’s date executed (and, if required to be stamped, pre-stamped) share transfers for all the Shares in favour of the Administrative Agent and/or its nominee(s) as transferees or, if the Administrative Agent so directs, with the transferee left blank and shall procure that all such share transfers are at the request of the Administrative Agent forthwith registered by each Company and that share certificates in the name of the Administrative Agent and/or such nominee(s) in respect of all the Shares are forthwith delivered to the Administrative Agent.

 

(b)                       The Chargor shall provide the Administrative Agent with certified copies of all resolutions and authorisations approving the execution of such transfer forms and registration of such transfers as the Administrative Agent may reasonably require.

 

(c)                        The Administrative Agent and its nominee may at any time after an Enforcement Event has occurred exercise or refrain from exercising (in the name of the Chargor, the registered holder or otherwise and without any further consent or authority from the Chargor and irrespective of any direction given by the Chargor) in respect of the Security Assets any voting rights and any powers or rights under the terms of the Security Assets or otherwise which may be exercised by the person or persons in whose name or names the Security Assets are registered or who is the holder thereof, including, without limitation, all the powers given to trustees by any legislation in respect of securities or property subject to a trust.  The Chargor shall not without the previous consent in writing of the Administrative Agent exercise the voting rights attached to any of the Shares in favour of resolutions in violation of this Deed or the Credit Agreement.  After an Enforcement Event has occurred, the Chargor hereby irrevocably appoints the Administrative Agent or its nominees its proxy to exercise (as provided in or permitted by this Deed) all voting rights so long as the Shares remain registered in the name of the Chargor.

 

(d)                       The Chargor during the continuance of this security will make all payments which may become due in respect of any of the Security Assets and, during the continuance of an Event of Default in making any such payment, the Administrative Agent may if it thinks fit make such payment on behalf of the Chargor.  Any sums so paid by the Administrative Agent shall be repayable by the Chargor to the Administrative Agent on demand and pending such repayment shall constitute part of the Secured Liabilities.

 

(e)        It is expressly agreed that, notwithstanding anything to the contrary contained in this Deed, the Chargor shall remain liable to observe and perform all of the conditions and obligations assumed by it in respect of the Security Assets and neither the

 

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Administrative Agent nor any other Secured Party shall be under any obligation or liability by reason of or arising out of the security over the Security Assets conferred by this Deed.  Neither the Administrative Agent nor any other Secured Party shall be required in any manner to perform or fulfil any obligation of the Chargor in respect of the Security Assets, or to make any payment, or to receive any enquiry as to the nature or sufficiency of any payment received by them, or to present or file any claim or take any other action to collect or enforce the payment of any amount to which they may have been or to which they may be entitled under this Deed at any time or times.

 

(f)                          Subject to the proviso to Clause 2.1, upon the occurrence of an Event of Default and at any time thereafter while the same is continuing the Administrative Agent shall be entitled to put into force and exercise in accordance with the terms of the Credit Agreement any and every power possessed by the Administrative Agent by virtue of the security over the Security Assets conferred by this Deed or available to a secured creditor (so that Sections 93 and 103 of the Law of Property Act 1925 shall not apply to this security) and in particular (without limitation):

 

(i)                      to sell all or any of the Security Assets in any manner permitted by law upon such terms as the Administrative Agent shall in its absolute discretion determine;

 

(ii)                   to collect, recover or compromise and give a good discharge for any moneys payable to the Chargor in respect of the Security Assets or in connection with them; and

 

(iii)                to act generally in relation to the Security Assets in such manner as the Administrative Agent acting reasonably shall determine.

 

(g)                       For the avoidance of doubt, the Chargor agrees that the enforceability of the security over the Security Assets conferred by this Deed is not dependent on the performance or non-performance by any Secured Party of its obligations under any agreement with the Chargor or the Guarantor or any other person.

 

5.2                     Dematerialisation and further documents of title

 

The Chargor shall:

 

(a)                        immediately on conversion of any of the Shares from certificated to uncertificated form, and on the creation or conversion of any other securities which are for the time being comprised in the Security Assets in or into uncertificated form, give such instructions or directions as the Administrative Agent may reasonably require in order to protect or preserve its security; and

 

(b)                       promptly upon receipt of any certificate or other document evidencing any entitlement to any further or other Security Assets deposit it with the Administrative Agent together with such share transfer forms in blank or other documents as the Administrative Agent may reasonably require.

 

6.                           APPLICATION OF PROCEEDS

 

Any monies received by the Administrative Agent after this Deed has become enforceable shall be applied in accordance with Section 9.03(b) of the Credit Agreement.

 

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7.                           POWER OF ATTORNEY

 

Upon the occurrence of an Event of Default and while the same is continuing, the Chargor, by way of security, irrevocably appoints the Administrative Agent the attorney of the Chargor on its behalf and in the name of the Chargor or the Administrative Agent (as the attorney may decide) to do all acts and things and execute all documents which the Chargor could itself do in relation to any of the Security Assets in connection with any of the matters provided for in this Deed, including (without limitation but subject to the proviso to Clause 2.1):

 

(a)                        to execute any transfer, bill of sale or other assurance in respect of the Security Assets;

 

(b)                       to exercise all the rights and powers of the Chargor in respect of the Security Assets;

 

(c)                        to ask, require, demand, receive, compound and give a good discharge for any and all moneys and claims for moneys due and to become due under or arising out of any of the Security Assets;

 

(d)                       to endorse any cheques or other instruments or orders in connection with any of the Security Assets; and

 

(e)                        to make any claims or to take any action or to institute any proceedings which the Administrative Agent considers to be necessary or advisable to protect the security created by this Deed.

 

8.                           PROTECTION OF PURCHASER

 

8.1                     No enquiry

 

No purchaser or other person dealing with the Administrative Agent or with its attorney or agent shall be concerned to enquire:

 

(a)                        whether any power exercised or purported to be exercised by it or him has become exercisable;

 

(b)                       whether any money remains due on this security;

 

(c)                        as to the propriety or regularity of any of its or his actions; or

 

(d)                       as to the application of any money paid to it or him.

 

8.2                     Dealings valid

 

In the absence of bad faith on the part of such purchaser or other person, such dealings shall be deemed, so far as regards the safety and protection of such purchaser or other person, to be within the powers conferred by this Deed and to be valid accordingly.  The remedy of the Chargor in respect of any impropriety or irregularity whatever in the exercise of such powers shall be in damages only.

 

9.                           DELEGATION

 

The Administrative Agent may at any time or times:

 

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(a)                        delegate to any person(s) all or any of its rights, powers and discretions under this Deed on such terms (including power to sub-delegate) as the Administrative Agent sees fit; and

 

(b)                       employ agents, managers, employees, advisers and others on such terms as the Administrative Agent sees fit for any of the purposes set out in this Deed.

 

10.                     INDEMNITY

 

10.1               Expenses

 

The Chargor will indemnify the Administrative Agent (as agent and trustee for itself and the Secured Parties) and the other Secured Parties and every attorney appointed by the Administrative Agent in respect of all liabilities and expenses incurred by the Administrative Agent, such Secured Party or attorney in good faith in the execution or purported execution of any rights in accordance with this Deed.

 

10.2               Secured Parties not liable

 

Neither the Administrative Agent nor any other Secured Party shall be liable for any losses arising in connection with the exercise or purported exercise of any of its rights, powers and discretions in good faith under this Deed and in particular (but without limitation) the Administrative Agent in possession shall not be liable to account as mortgagee in possession or for anything except actual receipts.

 

11.                     WAIVERS; REMEDIES CUMULATIVE

 

The rights of the Administrative Agent under this Deed:

 

(a)                        may be exercised as often as necessary;

 

(b)                       are cumulative and are not exclusive of its rights under the general law; and

 

(c)                        may be waived only in writing and specifically and may be on such terms as the Administrative Agent sees fit.

 

12.                     FURTHER ASSURANCE

 

The Charger shall from time to time upon the request of the Administrative Agent promptly and duly execute and deliver any and all such further instruments and documents as the Administrative Agent may (acting reasonably) deem necessary for the purpose of obtaining the full benefit of this Deed and of the rights and powers generated under it.

 

13.                     NOTICES

 

13.1               Delivery and Receipt

 

All notices pertaining to this Deed shall be given in writing or facsimile and shall be deemed to be given as follows:

 

(a)                        if in writing, when delivered; and

 

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(b)                       if by facsimile, when received,

 

save that any notice delivered or received on a non-working day or after business hours shall be deemed to be given on the next working day at the place of delivery or receipt.

 

13.2                 Addresses

 

(a)                        The Chargor’s address and facsimile number for notices is:

 

GFI Group

1 Snowden Street

London EC2A 2DQ

 

Attention:          Nigel Brahams

Facsimile:         +44 (0) 7422 1164

 

With a copy to:

 

GFI Group Inc.

55 Water Street

New York, NY 10041

Attention:          Scott Pintoff

Facsimile:         +1 212 962 2965

 

or such as the Chargor may notify to the Administrative Agent by not less than 10 days’ notice.

 

(b)                       The Administrative Agent’s address and facsimile number for notices are:

 

Bank of America, N.A.

335 Madison Avenue
 New York, New York 10017

 

Attention:          Don Pinzon
 Facsimile:          +1 646 556 0326

 

or such as the Administrative Agent may notify to the Chargor by not less than 10 days’ notice.

 

14.                     MISCELLANEOUS

 

14.1               Assignment

 

The Chargor may not assign any of its rights under this Deed.  The Administrative Agent may assign all or any part of its rights hereunder from time to time in accordance with the terms of the Credit Agreement.  References to the Administrative Agent include assigns of the Administrative Agent.

 

14.2               Severability

 

If a provision of this Deed is or becomes illegal, invalid or unenforceable in any jurisdiction, that shall not affect:

 

(a)                        the validity or enforceability in that jurisdiction of any other provision of this Deed; or

 

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(b)                       the validity or enforceability in other jurisdictions of that or any other provision of this Deed.

 

14.3               Counterparts

 

This Deed may be executed in any number of counterparts, all of which, taken together, shall constitute one and the same instrument and any party may enter into this Deed by executing a counterpart.

 

14.4               Trust

 

(a)                        The Administrative Agent shall hold the benefit of the covenants, mortgages, assignments and charges given by the Chargor in this Deed upon trust for the benefit of the Secured Parties.

 

(b)                       The perpetuity period for each trust created by this Deed shall be 80 years.

 

15.                     RELEASE

 

Upon the expiry of the Security Period (or sale or other disposition permitted by the Credit Agreement but not otherwise), the Administrative Agent shall, at the request and cost of the Chargor, take whatever action is reasonably necessary to release the Security Assets from the security constituted by this Deed and/or reassign the benefit of the Security Assets to the Chargor and return to the Chargor all certificates and other documents of title to the Shares, together with such instruments of transfer in respect thereof as may be reasonably necessary in the circumstances, duly executed in favour of the Chargor.

 

16.                     GOVERNING LAW AND JURISDICTION

 

16.1               Governing Law

 

This Deed and all non-contractual obligations arising out of or in connection with it shall be governed by English law.

 

16.2               Jurisdiction

 

(a)                        The courts of England have non-exclusive jurisdiction to settle any dispute arising out of or in connection with this Deed (including a dispute regarding the existence, validity or termination hereof or any non-contractual obligation arising out of or in connection with this Deed) (a “Dispute”).

 

(b)                       The parties hereto agree that the courts of England are the most appropriate and convenient courts to settle Disputes and accordingly no party will argue to the contrary.

 

(c)                        No party shall be prevented from taking proceedings relating to a Dispute in any other courts with jurisdiction.  To the extent allowed by law, a party may take concurrent proceedings in any number of jurisdictions.

 

THIS DEED has been executed and delivered as a deed by each party hereto on the date specified above.

 

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SIGNATORIES

 

	
The Chargor
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signed as a deed by
    	
)
    	
 
    
	
GFI Holdings Limited
    	
)
    	
 
    
	
acting by 
    	
)
    	
 
    
	
 
    	
)
    	
Director
    
	
 
    	
)
    	
 
    
	
and
    	
)
    	
 
    
	
 
    	
)
    	
 
    
	
 
    	
)
    	
Director/Secretary
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
The Administrative Agent
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signed as a deed by
    	
 
    	
 
    
	
BANK OF AMERICA, N.A.
    	
)
    	
 
    
	
a company incorporated in New York,
    	
)
    	
 
    
	
acting by 
    	
)
    	
Authorised Signatory
    
	
 
    	
)
    	
 
    
	
who in accordance with the laws of that 
    	
)
    	
 
    
	
territory is/are acting under the authority 
    	
)
    	
 
    
	
of that company
    	
)
    	
Authorised Signatory
    

 

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