Document:

EmersonEmploymentAgreementExhibit1033

Exhibit 10.33
EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT (the “Agreement”) is entered into as of September 9, 2013 (the “Effective Date”) and is by and between GAIN Capital Holdings, Inc., a corporation organized under the laws of Delaware (the “Company”) and Jason Emerson (the “Executive”).  The parties hereto, intending to be legally bound, hereby agree as follows:

     1.  Employment Term. The Company hereby agrees to employ the Executive and the Executive hereby accepts such employment, as the Chief Financial Officer for the Company commencing on September 23, 2013 (or such later date as the Executive and the Company shall mutually agree) (the “Start Date”) and continuing through the first anniversary of the Start Date, unless terminated sooner pursuant to Section 8 hereof (the “Term”).  This Agreement is not subject to any automatic renewal at the conclusion of the Term set forth herein, and renewal must be in writing signed by both parties.  

     2.  Representations and Warranties. The Executive represents that Executive is entering into this Agreement voluntarily and that Executive’s employment hereunder and his compliance with the terms and conditions of this Agreement will not conflict with or result in the breach of any agreement to which Executive is a party or by which Executive may be bound, or any legal duty that Executive owes or may owe to another. 

     3.  Duties and Extent of Services. 
     (a)  During the Term, the Executive shall serve as Chief Financial Officer of the Company and its consolidated subsidiaries, with such duties, responsibilities and authority as are consistent with such position, subject to the oversight of the Company (the “Board”), and shall so serve faithfully and to the best of Executive’s ability under the direction and supervision of the Chief Executive Officer.  As an executive officer of the Company, the Executive shall be entitled to all of the benefits and protections to which all officers of the Company are entitled pursuant to the Company’s Amended and Restated Certificate of Incorporation, which shall include, but not be limited to, the rights of indemnification set forth in such Amended and Restated Certificate of Incorporation, and coverage under the Company’s directors’ and officers’ liability insurance, as are in effect from time to time. 

     (b)  During the Term, the Executive agrees to devote substantially his full business time, attention, and energies to the Company’s business and shall not be engaged in any other business activity, whether or not such business activity is pursued for gain, profit, or other pecuniary advantage. Subject, however, to Section 14, 15 and 16 herein, the Executive may serve in charitable and civic positions and as a director of other companies with the prior written consent of the Chief Executive Officer, which consent shall not be unreasonably withheld. The Executive covenants, warrants, and represents that he shall devote his full and best efforts to the fulfillment of his employment obligations, and he shall exercise the highest degree of loyalty and the highest standards of conduct in the performance of his duties. 

     4.  Compensation. 

     (a)  Base Salary. The Company shall pay the Executive a base annual salary (the “Base Salary”) of not less than $250,000.  The Base Salary shall be payable in accordance with the Company’s standard payroll practices, currently consisting of two payments each month, less applicable withholdings.  The Executive shall not receive any additional compensation from any subsidiary of the Company. 

     (b)  Bonus. During the Executive’s employment under this Agreement, the Company shall cause the Executive to be eligible to participate in each bonus or incentive compensation plan, program or policy maintained by the Company from time to time, in whole or in part, for the executive officers of the Company (each, an “Incentive Compensation Plan” and payments thereunder, “Incentive Compensation”).  The Executive’s target bonus for 2013 shall be an amount equal to (i) $250,000 less (ii) the amount of any incentive bonus paid to the Executive for 2013 by his current employer, which bonus shall be paid to the Executive at the time annual bonuses are paid to other executives in respect of the performance of the Company and executives in 2013.  Additional discretionary bonus payments may be available subject to the Executive’s individual performance along with achievement of company metrics and financial results. Payment under any such Incentive Compensation Plan shall be made, if at all, after the close of the relevant performance period and by no later than March 30th of the year after the year in which the performance period ends. Notwithstanding 

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anything herein to the contrary, to the extent permitted or required by governing law, and in all cases subject to governing law, the Company’s Compensation Committee shall have discretion to adjust Executive’s compensation for the following year to account for, or to require the Executive to repay to the Company, the amount of any Incentive Compensation to the extent the Compensation Committee or Board determines that such bonus was not actually earned by the Executive due to (i) the amount of such payment was based on the achievement of financial results during the term of the Executive’s employment with the Company that were subsequently the subject of a material accounting restatement that occurs within three years of such payment (except in the case of a restatement due to a change in accounting policy or simple error); (ii) the Executive has engaged in fraud, gross negligence or intentional misconduct; or (iii) the Executive has deliberately misled the market or the Company’s stockholders regarding the Company’s financial performance. 

  (c)  Equity.  During the Term, the Executive will be eligible to participate in all long-term equity incentive programs made available to other executive officers and that are established by the Company for its employees, including the 2010 Omnibus Incentive Compensation Plan (or a successor thereto), at levels determined by the Compensation Committee in its sole discretion commensurate with the Executive’s performance and position.  In addition, on the next scheduled annual grant date following the Start Date (as determined by the Compensation Committee), the Executive will be granted an equity award pursuant to and subject to the terms and conditions of the 2010 Omnibus Incentive Compensation Plan (or successor plan) consisting of a number of restricted stock units and non-qualified stock options with an aggregate value of $150,000.  In addition,  on the next scheduled annual grant date following the Start Date (as determined by the Compensation Committee), the Executive will be granted an equity award pursuant to and subject to the terms and conditions of the 2010 Omnibus Incentive Compensation Plan (or successor plan) consisting of a number of restricted stock units and non-qualified stock options with an aggregate value equal to the market value, determined as of the day of forfeiture, of any equity securities of the Executive’s current employer that are forfeited by the Executive upon his joining the Company.

Eligibility to receive the foregoing equity awards shall be predicated on the Executive being employed by the Company on the applicable grant date; in the event the Executive’s employment is terminated for any reason prior to the applicable grant date, the Executive shall not be entitled to receive the equity grants and the Company shall have no further obligation to the executive relating to the receipt of additional equity compensation.  

The number of restricted stock units and non-qualified stock options included in each such equity award will be based, in the case of restricted stock units, on the fair market value of a share of the Company’s common stock at the close of trading on the grant date, and in the case of the non-qualified stock options, on a value calculated using the Black-Scholes method.  For the equity grants described above, the proportion of such value consisting of restricted stock units and non-qualified stock options shall be determined by the Compensation Committee. All equity grants made to the Executive will vest in accordance with a vesting schedule that is consistent with other grants under the 2010 Omnibus Incentive Compensation Plan (or successor plan) and will be subject in all respects to the terms of the 2010 Omnibus Incentive Compensation Plan (or successor plan) and the agreement evidencing such grant.    

     5.  Benefits.  During the Term, the Executive shall be entitled to participate in any and all benefit programs and arrangements generally made available by the Company to executive officers, including, but not limited to, pension plans, contributory and noncontributory welfare and benefit plans, disability plans and medical, death benefit and life insurance plans for which the Executive may be eligible during the Term. Furthermore, the Executive shall be permitted that number of days of paid time off (“PTO”) during each calendar year as, consistent with Company policy, are provided to similarly situated employees; however, in no event shall Employee receive fewer than four weeks of PTO (20 business days).  PTO may be used for vacation, sick time off, professional enrichment and education. Unused PTO shall accrue from one calendar year to another consistent with Company policy.       

6.  Expenses. During the Executive’s employment, the Executive will be reimbursed for travel, entertainment and other out-of-pocket expenses reasonably incurred by the Executive on behalf of the Company in the performance of the Executive’s duties hereunder, so long as (a) such expenses are consistent with the type and amount of expenses that customarily would be incurred by similarly situated corporate executives in the United States; and (b) the Executive timely provides copies of receipts for expenses in accordance with Company policy.  

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     7.  Adherence to Company Policy. The Executive acknowledges that the Executive is subject to insider information policies designed to preclude the Company’s employees from violating the federal securities laws by trading on material, non-public information or passing such information on to others in breach of any duty owed to the Company or any third party. The Executive shall promptly execute any agreements generally distributed by the Company or to its employees requiring employees to abide by the Company’s insider information policies.  Executive is also required to comply with Company policies, including the Employee Handbook and Code of Business Conduct and Ethics, as a term and condition of his employment under this Agreement.
 
     8.  Termination. 

     (a)  Disability. In accordance with applicable law, the Company may terminate the Executive’s employment at any time after the Executive becomes Disabled.  As used herein, “Disabled” means the incapacity of the Executive, on more than 75% of the standard business days (Monday through Friday) over any three month period, due to injury, illness, disease, or bodily or mental infirmity, to engage in the performance of all of the essential functions of his position, in spite of any reasonable accommodation. 

     (b)  Death. The Executive’s employment with the Company will terminate upon the death of the Executive. 

     (c)  Termination with Cause. The Company may terminate the Executive’s employment at any time for Cause by providing written notice of such termination to the Executive. As used herein, “Cause” means any of the following, as determined by the Board: 

          (i) the Executive’s material breach of this Agreement; 

          (ii) the Executive’s gross negligence (other than as a result of disability or occurring after the Executive’s provision of notice in connection with a resignation for Good Reason) or willful misconduct in carrying out his duties hereunder, resulting in harm to the Company; 

          (iii) the Executive’s material breach of any of his fiduciary obligations as an officer of the Company; 

          (iv) any conviction by a court of law of, or entry of a pleading of guilty or nolo contendere by the Executive with respect to, a felony or any other crime for which fraud or dishonesty is a material element, excluding traffic violations; 

          (v) the Executive willfully or recklessly engages in conduct which is materially injurious to the Company, monetarily or otherwise. 

     For purposes of determining Cause, no act or omission by the Executive shall be considered “willful” unless it is done or omitted in bad faith or without reasonable belief that the Executive’s action or omission was in the best interests of the Company. Any act or failure to act based upon: (a) authority given pursuant to a resolution duly adopted by the Board, or (b) advice of counsel for the Company, shall be conclusively presumed to be done or omitted to be done by the Executive in good faith and in the best interests of the Company. In addition, as to subsections (i)-(iii) above, if the action or inaction in question is susceptible of a cure, then no finding of Cause shall occur prior to written notice to the Executive setting forth in reasonable detail the action or inaction at issue, and the Executive’s failure to cure such condition following a cure period of no less than fifteen days.    

     (d)  Termination Without Cause. The Company, at the direction of the Board, may terminate the Executive’s employment without Cause at any time upon no less than ninety days’ prior written notice, or ninety days’ pay in lieu of notice.   
     (e)  Resignation for Good Reason. The Executive may resign from his employment with the Company for Good Reason by providing written notice to the Chief Executive Officer that an event constituting Good Reason has occurred and the Executive desires to resign from his employment with the Company as a result.  Other than following a Change of Control, such notice must be provided to the Chief Executive Officer by the Executive within sixty days following the initial occurrence of the event constituting Good Reason. For the avoidance of doubt, following a Change of Control, notice from the Executive to the Chief Executive Officer that an event constituting Good Reason has occurred may be 

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provided by the Executive at any time during the twelve month period following the Change of Control that is referred to in Section 10(a) below.  After receipt of such written notice, the Chief Executive Officer shall have a period of sixty days to cure such event; provided, however, the Chief Executive Officer, may, at his or her sole option, determine not to cure such event and accept the Executive’s resignation, effective thirty days following the Chief Executive Officer’s receipt of the Executive’s notice that an event constituting Good Reason has occurred.  If, in the reasonable judgment of the Executive, the Chief Executive Officer does not cure the event constituting Good Reason within the requisite sixty day period, the Executive’s employment with the Company shall terminate on account of Good Reason thirty days following the expiration of the Chief Executive Officer’s cure period, unless the Chief Executive Officer determines to terminate the Executive’s employment prior to such date. As used herein, “Good Reason” means that, without the Executive’s consent, any of the following has occurred: 

          (i) a material diminution in the Executive’s authority, duties, responsibilities or job title (for this purpose, not reporting to the Chief Executive Officer shall be deemed to be a material diminution of the Executive’s authority); 

          (ii) a material diminution in the Executive’s Base Salary; 

         (iii) a relocation of the Company’s principal offices in Bedminster, New Jersey, or of the Executive’s principal office (if different), to a location that is not within the New York metropolitan area; or 

          (iv) any action or inaction by the Company that constitutes a material breach by the Company of its obligations under this Agreement. 

For the avoidance of doubt, in no event shall the expiration of this Agreement be construed as giving rise to Good Reason. 

     (f)  Resignation Without Good Reason. The Executive may resign from his employment with the Company without Good Reason (as that term is defined in Section 8(e)) at any time upon no less than ninety days’ prior written notice to the Chief Executive Officer. Upon such notice of resignation, the Company may, at its sole option, accept the Executive’s resignation effective as of a date prior to the resignation date specified in the notice, and in such event, the earlier date will be the effective date of termination of the Executive’s employment for all purposes hereunder. 

     9.  Compensation Upon Termination Other Than in Connection With a Change In Control. 

     (a)  Disability. Upon termination of employment pursuant to Section 8(a), the Executive will receive any Base Salary accrued and unpaid as of such date as well as any accrued but unused PTO and appropriate expense reimbursements. Such amounts will be paid as soon as practicable after the termination of employment. If the Executive becomes disabled before the end of the fiscal year, the Executive will also receive Incentive Compensation for such fiscal year on a pro rata basis (1/12th of the aggregate Incentive Compensation (based on the Executive’s target bonus for such year) payable to the Executive for such fiscal year for each month in which he was employed on the last day of that month). Such pro rata Incentive Compensation will be paid at the time that the Incentive Compensation is payable to other executives. The Company shall have no further obligations under this Agreement to the Executive. 

     (b)  Death. In the event of the Executive’s death, the Executive’s estate will receive his Base Salary accrued and unpaid as of the date of his death as well as any accrued but unused PTO and appropriate expense reimbursements. Such amounts will be paid as soon as practicable after the termination of employment. If the Executive dies before the end of the fiscal year, the Executive’s estate will receive Incentive Compensation for such fiscal year on a pro rata basis (1/12th of the aggregate Incentive Compensation (based on the Executive’s target bonus for such year) payable to the Executive for such fiscal year for each month in which he was employed on the last day of that month). Such pro rata bonus will be paid at the time that the Incentive Compensation is payable to other executives. The Company shall have no further obligations under this Agreement to the Executive. 

     (c)  Termination Without Cause or Resignation With Good Reason Other Than in Connection With a Change in Control. If, other than in connection with a Change in Control as defined in Section 10, the Company terminates the Executive’s employment without Cause pursuant to Section 8(d) or if the Executive resigns for Good Reason pursuant 

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to Section 8(e), the Company will pay the Executive his Base Salary accrued and unpaid as of the date of termination of employment, as well as any accrued but unused PTO and appropriate expense reimbursements. Such amounts will be paid as soon as practicable after the termination of employment. In addition, subject to the Executive’s execution and nonrevocation of the general release of claims described in Section 11 below, as well as Executive’s compliance with the restrictive covenants set forth in Sections 13 through 16 below, the Company will also pay and/or provide to the Executive the following: 

(i) severance in an amount equal to twelve months of the Executive’s monthly Base Salary (the “Severance Amount”), less applicable withholdings, which shall be paid to the Executive in accordance with the Company’s normal payroll practices in equal installments over the twelve month period following Executive’s last day of employment and which shall commence as soon as administratively practicable following the expiration of the revocation period for the general release, but not later than sixty days following the date of Executive’s last day of employment with the Company; 

(ii) in accordance with Section 4(b), the Executive will receive any accrued and unpaid Incentive Compensation, less applicable withholdings, for which he is eligible, with such amount to be paid in a lump sum as soon as practicable after the termination of employment; 

(iii) notwithstanding any eligibility requirement that the Executive must be employed by the Company as of the date on which the Incentive Compensation is paid, if the Executive’s employment is terminated before such date in accordance with Section 8(d) or 8(e), he will be eligible to receive Incentive Compensation in an amount equal to an amount equal to his annual cash target bonus, as determined by the Chief Executive Officer, existing at such time, with such Incentive Compensation being paid in a lump sum at the same time that the Incentive Compensation is payable to other executives; 

(iv) notwithstanding any provision to the contrary in any applicable grant agreement or the Company’s 2010 Omnibus Incentive Compensation Plan (or a successor plan), all shares subject to Company equity grants (including without limitation stock options, stock units and stock awards) that vest solely on the Executive’s continued employment with the Company for a specified period of time held by the Executive at the time of his termination date that would have vested within the twelve month period following the Executive’s termination date if the vesting schedule for such grants were based on a monthly vesting schedule, as opposed to the vesting schedule set forth in his grant agreement, shall immediately vest in full and/or become immediately exercisable or payable on the Executive’s termination date; and

(v) the Company will provide continued health benefits to the Executive at the same premium rates charged to other then current employees of the Company, or, at its option, waive that portion of the cost for COBRA continuation coverage that is in excess of what then current employees of the Company pay for health benefits under the Company’s plan, for the twelve month period following his termination of employment, unless the Executive is eligible to be covered by health insurance provided by a future employer. 

     For the avoidance of doubt, acceleration, if any, of equity grants that vest in whole or in part based on the satisfaction of performance-based or market-based conditions will be governed by the terms of the applicable award agreement and/or plan.     

(d)  Termination With Cause and Resignation Without Good Reason. If the Company terminates the Executive’s employment with Cause pursuant to Section 8(c), if the Executive resigns without Good Reason pursuant to Section 8(f), or is in material breach of any of the covenants set forth in Sections 13, 14, 15, 16 or 17 below, the Company will pay the Executive his Base Salary accrued and unpaid as of the date of termination of employment as well as any accrued but unused PTO and appropriate expense reimbursements. Such amounts will be paid as soon as practicable after the termination of employment and, following such payments, the Company shall have no further obligations under this Agreement to the Executive.  

   (e)  Expiration of Agreement.  If this Agreement expires without any extension or renewal of its terms, the Executive will be an at-will employee of the Company thereafter, in which event Executive will remain subject to the terms and restrictions of Sections 13-18 hereof for the duration of his employment with the Company, and the applicable Restricted 

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Period following the termination of employment, whether pursuant to an agreement or employment at-will.  It is understood that the references in Section 14 hereof to Cause for termination and Resignation With Good Reason do not apply to any period of at-will employment, but will apply only with reference to the definition of the Restricted Period going forward as set forth in Section 14.  If the Company elects to terminate the Executive’s employment coincident with the expiration of this Agreement, the Company will pay the Executive his Base Salary accrued and unpaid as of the date of termination of employment as well as any accrued but unused PTO and appropriate expense reimbursements and, following such payments, the Company shall have no further obligations under this Agreement to the Executive except as set forth in Section 10(a). 

10.  Change in Control. 

    (a)  Termination Without Cause or Resignation With Good Reason in Connection With a Change in Control. If, on or within twelve (12) months after a Change in Control, and whether or not the Term has previously expired, the Company or its successor terminates the Executive’s employment without Cause pursuant to Section 8(d) or if the Executive resigns for Good Reason pursuant to Section 8(e), the Executive is entitled to his Base Salary accrued and unpaid as of the date of termination of employment as well as any accrued but unused PTO and appropriate expense reimbursements. Such amounts will be paid as soon as practicable after the termination of employment. In addition, subject to the Executive’s execution and nonrevocation of the general release of claims described in Section 11 below and compliance with the requirements of Section 23 below, the Executive shall be entitled to the following:   

(i)  severance in an amount equal to twenty-four months of the Executive’s monthly Base Salary (the “Change in Control Severance Amount”), less applicable withholdings, which shall be paid to the Executive in a lump sum as soon as administratively practicable following the expiration of the revocation period for the general release, but not later than sixty days following the date of Executive’s last day of employment with the Company; 

        (ii)  in accordance with Section 4(b), the Executive will receive any accrued and unpaid Incentive Compensation, minus applicable deductions and withholdings, for which he is eligible, with such amount to be paid in a lump sum as soon as practicable after the termination of employment with the Company; 

        (iii)  notwithstanding any eligibility requirement that the Executive must be employed by the Company as of the date on which the Incentive Compensation is paid, if the Executive’s employment is terminated before such date, he will be eligible to receive Incentive Compensation on a pro rata basis (1/12th of the aggregate Incentive Compensation payable to the Executive for the fiscal year for each month in which he was employed on the last day of that month), minus applicable deductions and withholdings, based on the target Incentive Compensation for the applicable period, with such pro rata Incentive Compensation being paid in a lump sum as soon as administratively practicable following the expiration of the revocation period for the general release, but not later than sixty days following the date of the Executive’s last day of employment with the Company; 

        (iv)  an amount equal to an amount equal to his annual cash target bonus, as determined by the Chief Executive Officer, existing at such time, with such amount to be paid in a lump sum as soon as administratively practicable following the expiration of the revocation period for the general release, but not later than sixty days following the date of the Executive’s last day of employment with the Company; 

        (v)  notwithstanding any provision to the contrary in any applicable grant agreement or the Company’s 2010 Omnibus Incentive Compensation Plan (or a successor plan), all shares subject to Company equity grants (including without limitation stock options, stock units and stock awards) that vest solely on the Executive’s continued employment with the Company for a specified period of time held by the Executive at the time of his termination date shall immediately vest in full and/or become immediately exercisable or payable on the Executive’s termination date; and 

        (vi)  the Company will provide continued health benefits to the Executive at the same premium rates charged to other then current employees of the Company, or at its option, waive that portion of the cost for COBRA continuation coverage that is in excess of what then current employees of the Company pay for health benefits under the Company’s plan, for the twelve month period following his termination of employment, unless the Executive is eligible to be covered by health insurance provided by a future employer. 

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       For the avoidance of doubt, acceleration, if any, of equity grants that vest in whole or in part based on the satisfaction of performance-based or market-based conditions will be governed by the terms of the applicable award agreement and/or plan. In the event that the Company modifies the performance periods or frequency at which discretionary bonuses are to be earned or paid, the references to Incentive Compensation in Section 9 and this Section 10 shall be construed accordingly to reflect such modified bonus periods or frequency. 

(b)  For the avoidance of doubt, the provisions in the Company’s 2010 Omnibus Incentive Compensation Plan (or successor or predecessor equity compensation plans, as applicable) relating to the acceleration of vesting of equity awards in the event of a Change in Control shall apply to any equity awards held by the Executive.

(c) For purposes of this Agreement, “Change in Control” means a (i) Change in Ownership of the Company, (ii) Change in Effective Control of the Company, or (iii) Change in the Ownership of Assets of the Company, as described herein and construed in accordance with Section 409A of the Internal Revenue Code of 1986, as amended, and the regulations and Treasury guidance issued thereunder (the “Code”); except that no Change in Control shall be deemed to occur as a result of a change of ownership resulting from the death of a stockholder or a transaction in which the Company becomes a subsidiary of another corporation and in which the stockholders of the Company, immediately prior to the transaction, will beneficially own, immediately after the transaction, shares entitling such stockholders to more than 50% of all votes to which all stockholders of the parent corporation would be entitled in the election of directors (without consideration of the rights of any class of stock to elect directors by a separate class vote). 

(i) A “Change in Ownership of the Company” shall occur on the date that any one Person acquires, or Persons Acting as a Group acquire, ownership of the capital stock of the Company that, together with the stock previously held by such Person or Group, constitutes more than 50% of the total fair market value or total voting power of the capital stock of the Company.  However, if any one Person is, or Persons Acting as a Group are, considered to own more than 50% of the total fair market value or total voting power of the capital stock of the Company, the acquisition of additional stock by the same Person or Persons Acting as a Group is not considered to cause a Change in Ownership of the Company or to cause a Change in Effective Control of the Company (as described below). An increase in the percentage of capital stock owned by any one Person, or Persons Acting as a Group, as a result of a transaction in which the Company acquires its stock in exchange for property will be treated as an acquisition of stock. 

(ii) A “Change in Effective Control of the Company” shall occur if, in any twelve-month period, a majority of the members of the Board are not Continuing Directors.  “Continuing Directors” means, as of any date of determination, any member of the Board who (a) was a member of the Board on the Start Date or (b) was nominated for election, elected or appointed to the Board with the approval of a majority of the Continuing Directors who were members of the Board at the time of such nomination, election or appointment (either by a specific vote or by approval of the Company’s proxy statement in which such member was named as a nominee for election as a director, without objection to such nomination). 

(iii) A “Change in the Ownership of Assets of the Company” shall occur on the date that any one Person acquires, or Persons Acting as a Group acquire (or has or have acquired during the 12-month period ending on the date of the most recent acquisition by such Person or Persons), assets from the Company that have a total gross fair market value equal to or more than 75% of the total gross fair market value of all of the assets of the Company immediately before such acquisition or acquisitions. For this purpose, “gross fair market value” means the value of the assets of the Company, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets. 

         (iv)The following rules of construction apply in interpreting the definition of Change in Control: 

(a) A “Person” means any individual, entity or group within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and regulations thereunder, other than employee benefit plans sponsored or maintained by the Company and by entities controlled by the Company or an underwriter of the capital stock of the Company in a registered public offering. 

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(b) Persons will be considered to be “Persons Acting as a Group” (or “Group”) if (i) they are considered to be acting as a group within the meaning of Sections 13(d)(3) and 14(d)(2) of the Exchange Act and the rules and regulations thereunder or (ii) they are owners of a corporation or other entity that enters into a merger, consolidation, purchase or acquisition of stock, or similar business transaction with the Company. If a Person owns stock in both corporations that enter into a merger, consolidation, purchase or acquisition of stock, or similar transaction, such shareholder is considered to be acting as a Group with other shareholders only with respect to the ownership in that corporation before the transaction giving rise to the change and not with respect to the ownership interest in the other corporation. Persons will not be considered to be acting as a Group solely because they purchase assets of the same corporation at the same time or purchase or own stock of the same corporation at the same time, or as a result of the same public offering. 

(c) For purposes of the definition of Change in Control, “fair market value” shall be determined by the Board. 

(d) A Change in Control shall not include a transfer to a related person as described in Code Section 409A or a public offering of capital stock of the Company. 

(e) For purposes of the definition of Change in Control, Code Section 318(a) applies to determine stock ownership. Stock underlying a vested option is considered owned by the individual who holds the vested option (and the stock underlying an unvested option is not considered owned by the individual who holds the unvested option). For purposes of the preceding sentence, however, if a vested option is exercisable for stock that is not substantially vested (as defined by Treas. Reg. § 1.83-3(b) and (j)), the stock underlying the option is not treated as owned by the individual who holds the option.

11.     Release of Claims. As a condition for the payments of the Severance Amount or the Change in Control Severance Amount and Incentive Compensation provided in Section 9(c) or Section 10(a), the Executive must execute a general release of all claims (including claims under local, state and federal laws, but excluding claims for payment due under Section 9(c) or Section 10(a)) that the Executive has or may have against the Company and current and former related individuals or entities (the “Release”). The Release shall be in a form reasonably acceptable to the Company, and shall include confidentiality, cooperation, and non-disparagement provisions, as well as other terms requested by the Company that are typical of an executive severance agreement. The consideration provided for in Section 9(c) or Section 10(a) is conditioned upon and will not be paid (or be provided) until the execution of the Release and the expiration of any revocation period; provided that notwithstanding any provision of this Agreement to the contrary, in no event shall the timing of the Executive’s execution of the Release, directly or indirectly, result in the Executive designating the calendar year of payment, and if a payment that is subject to execution of the Release could be made in more than one taxable year, payment shall be made in the later taxable year. The Company shall provide the Release to the Executive by no later than ten days after the Executive terminates employment with the Company, and the Executive shall execute the Release during the statutory time period specified by applicable law. If the Release is not executed during the statutory time period specified by applicable law, the Company’s obligation to pay any Severance Amount, Change in Control Severance Amount, or Incentive Compensation and to provide any acceleration of vesting and continued health benefits provided for in Section 9(c) or Section 10(a) pursuant to this Agreement shall terminate.

12.  Section 280G Cutback. The Executive shall bear all expense of, and be solely responsible for, all federal, state, local or foreign taxes due with respect to any payment received under this Agreement, including, without limitation, any excise tax imposed by Code Section 4999. Notwithstanding anything to the contrary in this Agreement, in the event that any payment or benefit received or to be received by the Executive pursuant to the terms of this Agreement or in connection with the Executive’s termination of employment or contingent upon a Change in Control pursuant to any plan or arrangement or other agreement with the Company or any affiliate (collectively, the “Payments”) would be subject to the excise tax imposed by Code Section 4999, as determined by the Company, then the Payments shall be reduced to the extent necessary to prevent any portion of the Payments from becoming nondeductible by the Company under Code Section 280G or subject to the excise tax imposed under Code Section 4999, but only if, by reason of that reduction, the net after-tax benefit received by the Executive exceeds the net after-tax benefit the Executive would receive if no reduction was made. For this purpose, “net after-tax benefit” means (i) the total of all Payments that would 

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constitute “excess parachute payments” within the meaning of Code Section 280G, less (ii) the amount of all federal, state, and local income taxes payable with respect to the Payments calculated at the maximum marginal income tax rate for each year in which the Payments shall be paid to the Executive (based on the rate in effect for that year as set forth in the Code as in effect at the time of the first payment of the Payments), less (iii) the amount of excise taxes imposed on the Payments described in clause (i) above by Code Section 4999. If, pursuant to this Section 12, Payments are to be reduced, the Company shall determine which Payments shall be reduced in a manner so as to avoid the imposition of additional taxes under Code Section 409A. 

     13.  Confidentiality; Return of Company Property. 

     (a)  The Executive acknowledges that, by reason of Executive’s employment by the Company, Executive will have access to confidential information of the Company, including, without limitation, information and knowledge pertaining to products, inventions, discoveries, improvements, innovations, designs, ideas, trade secrets, proprietary information, business strategies, packaging, advertising, marketing, distribution and sales methods, sales and profit figures, employees, customers and clients, and relationships between the Company and its business partners, including dealers, traders, distributors, sales representatives, wholesalers, customers, clients, suppliers and others who have business dealings with them (“Confidential Information”). The Executive acknowledges that such Confidential Information is a valuable and unique asset of the Company and covenants that, both during and after the Term, Executive will not disclose any Confidential Information to any person or entity, except as the Executive’s duties as an employee of the Company may require, without the prior written authorization of the Chief Executive Officer. The obligation of confidentiality imposed by this Section 13 shall not apply to Confidential Information that otherwise becomes generally known to the public through no act of the Executive in breach of this Agreement or any other party in violation of an existing confidentiality agreement with the Company, or which is required to be disclosed by court order or applicable law. 

     (b)  All records, designs, patents, business plans, financial statements, manuals, memoranda, lists, research and development plans and products, and other property delivered to or compiled by the Executive by or on behalf of the Company or its vendors or customers that pertain to the business of the Company shall be and remain the property of the Company, and be subject at all times to its discretion and control. Likewise, all property, including without limitation all documents, whether in computer or hard copy form, that Executive creates or receives during and as a result of his employment by the Company, shall be returned to the Company upon request and at the end of the Executive’s employment. 

     14.  Non-Competition. While the Executive is employed at the Company and for a period of twelve months after the termination of his employment with the Company for any reason, other than following termination without Cause or Resignation for Good Reason after a Change in Control, pursuant to Section 10, in which case such period shall be six months (as applicable, the “Restricted Period”), the Executive will not, directly or indirectly, own, maintain, finance, operate, engage in, assist, be employed by, contract with, license, or have any interest in, or association with, a business or enterprise primarily engaged in or planning to be primarily engaged in, the Internet retail trading of foreign exchange, futures or options on futures or any other businesses in which the Company is substantially engaged  (which shall be defined as any business activity from which the Company generated at least $5 million of revenue over the twelve months immediately preceding the month in which the termination of employment occurs) at the time of the Employee’s termination of employment. 

     15.  Solicitation of Clients. During the Restricted Period, the Executive shall not, directly or indirectly, including through any other person or entity, seek business from any Client on behalf of any enterprise or business other than the Company, refer business generated from any Client to any enterprise or business other than the Company, or receive commissions based on sales or otherwise relating to the business from any Client, enterprise or business other than the Company, provided that such solicitation, if successful, would have an adverse effect on the Company.  For purposes of this Agreement, the term “Client” means any person, firm, corporation, limited liability company, partnership, association or other entity (i) to which the Company sold or provided services during the twelve-month period prior to the time at which any determination is required to be made as to whether any such person, firm, corporation, partnership, association or other entity is a Client, or (ii) who or which has been approached by an employee of the Company for 

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the purpose of soliciting business for the Company and which business was reasonably expected to generate revenue in excess of $100,000 per annum. 

     16.  Solicitation of Employees. During the Restricted Period, the Executive, directly or indirectly, shall not contact or solicit any employee of the Company for the purpose of hiring them or causing them to terminate their employment relationship with the Company. 

     17.  Inventions, Ideas, Processes, and Designs. All inventions, ideas, processes, programs, software, and designs (including all improvements) conceived or made by the Executive during his employment with the Company (whether or not actually conceived during regular business hours) and related to the business of the Company, or the business approved by the Board to be engaged in by the Company, shall be disclosed in writing promptly to the Company and shall be the sole and exclusive property of the Company. An invention, idea, process, program, software, or design (including an improvement) shall be deemed related to the actual or approved business of the Company if (x) it was made with the Company’s equipment, supplies, facilities, or Confidential Information, (y) results from work performed by the Executive for the Company, or (z) pertains to the current business or demonstrably anticipated research or development work of the Company. The Executive shall cooperate with the Company and its attorneys in the preparation of patent and copyright applications for such developments and, upon request, shall promptly assign all such inventions, ideas, processes, and designs to the Company. The decision to file for patent or copyright protection or to maintain such development as a trade secret shall be in the sole discretion of the Company, and the Executive shall be bound by such decision. 

     18.  Specific Performance/Remedies. The Executive acknowledges that the services to be rendered by the Executive are of a special, unique and extraordinary character and, in connection with such services, the Executive will have access to Confidential Information vital to the Company’s business. Executive further agrees that the covenants contained in Sections 13, 14, 15, 16 and 17 are reasonable and necessary to protect the legitimate business interests of the Company. By reason of this, the Executive consents and agrees that if the Executive violates any of the provisions of Section 13, 14, 15, 16 and 17 hereof, the Company would sustain irreparable injury and that monetary damages would not provide adequate remedy to the Company. The Executive hereby agrees that the Company shall be entitled to have Section 13, 14, 15, 16 and 17 hereof specifically enforced (including, without limitation, by injunctions and restraining orders) by any court in the State of New Jersey having equity jurisdiction, agrees to be subject to the jurisdiction and venue of said court, and agrees that the Company may seek injunctive relief without the necessity of posting a bond.  As a further and non-exclusive remedy, Executive understands that a breach of the covenants contained in Sections 13, 14, 15, 16 or 17 above that causes material harm to the Company as reasonably determined by the Board (which determination shall be binding and final) shall eliminate Executive’s entitlement to any further payment of the Severance Amount, Change in Control Severance Amount, Incentive Compensation, acceleration of vesting and continued health benefits provided for in Section 9(c) or Section 10(a), and Executive shall be required to return any such amounts in the event of such a breach except for an amount equal to one month’s salary, and which amount is sufficient to serve as valid consideration for the release of claims set forth in Section 11 hereof.  Executive further agrees that any amounts forfeited or withheld shall not be considered as liquidated damages, and that nothing contained herein shall be construed as prohibiting the Company from pursuing any other remedies available to it for such breach or threatened breach, including the recovery of damages from the Executive. 

     19.  Complete Agreement. This Agreement embodies the entire agreement of the parties with respect to the Executive’s employment, compensation, benefits and related items and supersedes any other prior oral or written agreements, arrangements or understandings between the Executive and the Company, other than the award agreements reflecting outstanding equity awards held by the Executive as of the date of this Agreement which shall continue to control such equity awards except as expressly modified by Sections 9(c) and 10(a) of this Agreement. This Agreement may not be changed or terminated orally but only by an agreement in writing signed by the parties hereto. 

     20.  Waiver. The waiver by either party of a breach of any provision of this Agreement by the other party shall not operate or be construed as a waiver of any subsequent breach by such party. 

     21.  Governing Law; Assignability; Arbitration. 

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     (a) This Agreement shall be governed by, and construed in accordance with, the laws of the State of New Jersey without reference to the choice of law provisions thereof. 

     (b) The Executive may not, without the Company’s prior written consent, delegate, assign, transfer, convey, pledge, encumber or otherwise dispose of this Agreement or any interest herein. Any such attempt shall be null and void and without effect. The Company and the Executive agree that this Agreement and all of the Company’s rights and obligations hereunder may be assigned or transferred by the Company and shall be assumed by and be binding upon any successor to the Company. 

Executive agrees that any dispute, controversy or claim arising out of or related to Executive’s employment with the Company, this Agreement or any claim for breach thereof (other than disputes, controversies or claims relating to Executive’s obligations under Sections 13-18 hereof) must be submitted within six (6) months of the time when the occurrence or event giving rise to the dispute, controversy or claim arose to binding arbitration conducted by the American Arbitration Association (“AAA”) in Somerset County, New Jersey, and to be governed by AAA rules.  Any arbitral award determination shall be final and binding upon the parties.  For any proceedings not covered by arbitration (including those relating to Executive’s obligations under Sections 13-18 hereof), the Parties submit to the exclusive jurisdiction of any court of competent jurisdiction in the State of New Jersey as provided for in Section 18 hereof.  Executive understands and agrees that by virtue of this Agreement he is giving up rights otherwise afforded to him in a civil court action, including his right to a trial by jury.

     22.  Severability. If any provision of this Agreement or any part thereof, including, without limitation, Sections 13, 14, 15, 16 or 17, as applied to either party or to any circumstances shall be adjudged by a court of competent jurisdiction to be void or unenforceable, the same shall in no way affect any other provision of this Agreement or remaining parts thereof, which shall be given full effect without regard to the invalid or unenforceable part thereof, or the validity or enforceability of this Agreement. In the event an arbitrator or court of competent jurisdiction deems the restrictive covenants unreasonably lengthy in time or overly broad in scope, it is the intention and agreement of the parties that those provisions which are not fully enforceable be deemed as having been modified to the extent necessary to render them reasonable and enforceable and that they be enforced to such extent. 

     23.  Notices. All notices to the Company or the Executive, permitted or required hereunder, shall be in writing and shall be delivered personally, by telecopier or by courier service providing for next-day delivery or sent by registered or certified mail, return receipt requested, to the following addresses: 

     If to the Company: 

GAIN Capital Holdings, Inc.
Bedminster One
135 Route 202/206
Bedminster, New Jersey 07921
Attention: Chief Executive Officer
     
If to the Executive, to the address set forth on the first page hereof. 

     Either party may change the address to which notices shall be sent by sending written notice of such change of address to the other party. Any such notice shall be deemed given, if delivered personally, upon receipt; if telecopied, when telecopied; if sent by courier service providing for next-day delivery, the next business day following deposit with such courier service; and if sent by certified or registered mail, three days after deposit (postage prepaid) with the U.S. mail service. 

     24. Section 409A. 

     (a) This Agreement shall be interpreted to avoid the imposition of any additional taxes under Code Section 409A. If any payment or benefit cannot be provided or made at the time specified herein without incurring additional taxes under Code Section 409A, then such benefit or payment shall be provided in full at the earliest time thereafter when 

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such sanctions will not be imposed. The preceding provisions, however, shall not be construed as a guarantee by the Company of any particular tax effect to the Executive under this Agreement. For purposes of Code Section 409A, each payment under this Agreement shall be treated as a separate payment and the right to a series of installment payments under this Agreement shall be treated as a right to a series of separate payments. In no event may the Executive, directly or indirectly, designate the calendar year of payment. 

     (b) To the maximum extent permitted under Code Section 409A, the cash severance payments payable under this Agreement are intended to comply with the ‘short-term deferral exception’ under Treas. Reg. §1.409A-1(b)(4), and any remaining amount is intended to comply with the ‘separation pay exception’ under Treas. Reg. §1.409A-1(b)(9)(iii) or any successor provision; provided, however, any amount payable to the Executive during the six-month period following the Executive’s termination date that does not qualify within either of the foregoing exceptions and is deemed as deferred compensation subject to the requirements of Code Section 409A, then such amount shall hereinafter be referred to as the ‘Excess Amount.’ If the Executive is a “key employee” of a publicly traded corporation under Section 409A at the time of his separation from service and if payment of the Excess Amount under this Agreement is required to be delayed for a period of six  months after separation from service pursuant to Code Section 409A, then notwithstanding anything in this Agreement to the contrary, payment of such amount shall be delayed as required by Code Section 409A, and the accumulated postponed amount shall be paid in a lump sum payment within ten days after the end of the six  month period. If the Executive dies during the postponement period prior to the payment of the postponed amount, the amounts withheld on account of Section 409A shall be paid to the personal representative of the Executive’s estate within sixty days after the date of the Executive’s death. A “key employee” shall mean an employee who, at any time during the 12-month period ending on the identification date, is a “specified employee” under Code Section 409A, as determined by the Board, in its sole discretion. The determination of key employees, including the number and identity of persons considered key employees and the identification date, shall be made by the Board in accordance with the provisions of Code Sections 416(i) and 409A. 

     (c) To the extent the Executive is, at the time of his termination of employment under this Agreement, participating in one or more deferred compensation arrangements subject to Code Section 409A, the payments and benefits provided under those arrangements shall continue to be governed by, and to become due and payable in accordance with, the specific terms and conditions of those arrangements, and nothing in this Agreement shall be deemed to modify or alter those terms and conditions. 

     (d) “Termination of employment,” “resignation,” or words of similar import, as used in this Agreement means, for purposes of any payments under this Agreement that are payments of deferred compensation subject to Code Section 409A, the Executive’s “separation from service” as defined in Code Section 409A. 

     (e) Nothing herein shall be construed as having modified the time and form of payment of any amounts or payments of “deferred compensation” (as defined under Treas. Reg. § 1.409A-1(b)(1), after giving effect to the exemptions in Treas. Reg. §§ 1.409A-1(b)(3) through (b)(12)) that were otherwise payable pursuant to the terms of any agreement between Company and the Executive in effect on or after January 1, 2005 and prior to the date of this Agreement. 

     (f) All reimbursements provided under this Agreement shall be made or provided in accordance with the requirements of Code Section 409A, including, where applicable, the requirement that (i) any reimbursement is for expenses incurred during the Executive’s lifetime (or during a shorter period of time specified in this Agreement), (ii) the amount of expenses eligible for reimbursement during a calendar year may not affect the expenses eligible for reimbursement in any other calendar year, (iii) the reimbursement of an eligible expense will be made on or before the last day of the calendar year following the year in which the expense is incurred, and (iv) the right to reimbursement is not subject to liquidation or exchange for another benefit. 

     25. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, and all of which taken together shall constitute one and the same instrument. 

  

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   26. Separation. All covenants that, by their terms, naturally would survive the termination or expiration of this Agreement, including but not limited to Sections 11, 12, 13, 14 and 15 hereof, shall survive the termination or expiration of this Agreement. 

[SINGATURE PAGE FOLLOWS]

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IN WITNESS WHEREOF, the parties hereto have duly executed this Employment Agreement as of the date first above written. 
	
					
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	GAIN CAPITAL HOLDINGS, INC.
	 
	 

	 
	 
	 
	 
	

 

	By:
	 
	 /s/ Glenn H. Stevens
	 
	 

	Name:
	 
	Glenn H. Stevens
	 
	 

	Title:
	 
	President and Chief Executive Officer
	 
	 

	 

	 
	 
/s/ Jason Emerson
	 
	 

	 
	 
	 

	Jason Emerson
	 
	 

14Exhibit 10.17 A. Lorne Weil Agreement and General Release

Exhibit 10.17

AGREEMENT AND GENERAL RELEASE

This Agreement and General Release (this “Agreement”) is made and entered into as of the Execution Date (as defined below), by and between A. Lorne Weil (“Executive”) and Scientific Games Corporation, a Delaware corporation (the “Company”).
WHEREAS, Executive has been employed as Chief Executive Officer of the Company pursuant to an Employment Agreement, dated as of January 1, 2006, between Executive and the Company, as clarified by a letter agreement dated as of August 2, 2007, and as amended by amendments dated May 1, 2008, December 30, 2008, May 29, 2009, December 2, 2010, and August 18, 2011 (as so amended, the “Employment Agreement”);
WHEREAS, the Company and Executive desire to enter into this Agreement in connection with Executive’s separation from employment with the Company;
NOW THEREFORE, in consideration of the recitals and the mutual promises, covenants and agreements set forth in this Agreement, the parties hereby agree as follows:
1.Separation.  Executive ceased serving as Chairman and Chief Executive Officer of the Company as of November 18, 2013 (the “Separation Date”).  The Employment Agreement shall automatically terminate and be of no further force or effect as of the Separation Date, except that Sections 6.1, 6.2, 6.3, 6.6, 6.7 and 6.10 of the Employment Agreement (collectively, the “Surviving Provisions”) and Section 8 of the Employment Agreement shall survive such termination and continue in full force and effect in accordance with their respective terms (and the Surviving Provisions are incorporated herein by reference).  Effective upon the Separation Date, Executive shall be deemed to have resigned from all officer, director, manager, and trustee positions of the Company and its subsidiaries and affiliates and, following the Separation Date, Executive shall not represent himself as being an employee, officer, director, manager, agent, or representative of the Company or any of its subsidiaries or affiliates.  The Separation Date shall be the termination date of Executive’s employment for purposes of participation in and coverage under all benefit plans and programs sponsored by or through the Company and any of its subsidiaries or affiliates, except as otherwise specifically provided herein.
2.    Consideration to Executive.  Except for any payments or benefits Executive has accrued or vested in pursuant to Executive’s participation in the Company’s 401(k) plan, which shall be subject to the terms and conditions set forth in such plan, Executive acknowledges and agrees that the payments and benefits set forth in this Section 2 fulfill any and all of the Company’s obligations due to Executive under any agreement or bonus, incentive compensation, severance or separation plan or allowance or any other compensation or benefit plan or arrangement maintained by the Company or any of its subsidiaries (including the Employment Agreement), and Executive specifically acknowledges and agrees that Executive is entitled to no other compensation or benefits (of any kind or nature whatsoever) from the Company or any of its subsidiaries.  In full consideration of Executive’s promises, covenants and agreements set forth in this Agreement, and for other good and valuable consideration, receipt of which is hereby acknowledged, and subject to this Agreement becoming irrevocable in accordance with Section 15, the Company shall provide the following payments and benefits to Executive (subject to applicable withholdings):
(a)    any accrued but unpaid base salary of Executive for services rendered prior to the Separation Date, payable in accordance with the Company’s regular payroll practices (and subject to applicable withholdings);
(b)    reimbursement in accordance with the Company’s policies of any unpaid reasonable business expenses and disbursements incurred by Executive prior to the Separation Date; provided, however, that Executive must submit vouchers for any such expenses in accordance with the Company’s standard procedures within fourteen (14) days after the Separation Date;

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(c)    a cash severance amount equal to $6,178,603 in the aggregate (subject to applicable withholdings) (the “Severance Payment”), which shall be payable in installments over a period of twenty-four (24) months after the Separation Date in accordance with the Company’s regular payroll practices; provided, however, that (i) no payments in respect of the Severance Payment shall be made for the six (6)-month period immediately following the Separation Date, (ii) an amount equal to the aggregate sum that would have been otherwise payable in respect of the Severance Payment during the six-month period immediately following the Separation Date shall be paid in a lump sum on the first payroll date immediately following the six (6) month anniversary of the Separation Date, and (iii) payments of the remaining amount of the Severance Payment (if any) shall be payable in equal installments during the remaining portion of the twenty-four (24) month-period following the six-month anniversary of the Separation Date, in accordance with the Company’s regular payroll practices; for purposes of clarity and without limiting any forfeiture, offset or other provisions contemplated by this Agreement, the calculation of the Severance Payment is set forth in Attachment B; 
(d)    no later than March 15, 2014, in lieu of any Incentive Compensation (as defined in the Employment Agreement) for 2013, payment of a lump sum amount equal to (i) the Incentive Compensation (if any) that would have been payable to Executive in accordance with Section 4(b) of the Employment Agreement had Executive remained in employment with the Company through December 31, 2013, multiplied by (ii) a fraction, the numerator of which is the number of days Executive was employed in 2013, and the denominator of which is 365 (subject to applicable withholdings);
(e)    subject to Section 6.6 of the Employment Agreement, and except to the extent otherwise provided at the time of grant under the terms of any equity award made to Executive, full vesting of all unvested stock options and RSUs (“RSUs”) held by Executive as of immediately prior to the Separation Date (other than the unvested stock options and RSUs comprising the Performance Vesting 2010 Grant (as defined in the Employment Agreement), which are forfeited and cancelled as of the Separation Date), and, in all other respects, all such stock options and RSUs shall be governed by the plans and programs and the agreements and other documents pursuant to which such awards were granted; provided that any vested stock options held by Executive as of immediately prior to the Separation Date and all vested stock options that vest pursuant to this Section 2(e) shall remain exercisable until the earlier of 90 days after the Separation Date and the scheduled expiration date of such stock options, and any such vested stock options that remain unexercised following such date shall be automatically forfeited and cancelled; provided, further, that the shares of the Company’s common stock in respect of the 100,000 vested RSUs comprising part of the Performance Vesting 2010 Grant held by Executive as of immediately prior to the Separation Date shall be delivered on March 15, 2016, as contemplated by the Employment Agreement; for purposes of clarity and without limiting any forfeiture, offset or other provisions contemplated by this Agreement, Attachment B sets forth the stock options and RSUs held by Executive that (i) shall vest upon the effectiveness and subject to the terms and conditions of this Agreement and (ii) are already vested; and
(f)    if Executive elects to continue COBRA coverage under the Company’s group health plan in accordance with COBRA, the monthly premiums for such coverage for a period of twelve (12) months (based on Executive’s current coverage elections), such amount to be paid by the Company directly to the provider during such period (thereafter, Executive will be responsible for paying the entire COBRA premium).  As soon as reasonably practicable following the Separation Date, the Company will provide Executive with timely and adequate notice of Executive’s right to continue group insurance benefits under COBRA.
Notwithstanding anything contained to the contrary in this Agreement, the Employment Agreement or otherwise, the Company shall be entitled to offset against any payments or benefits under this Section 2 (in any manner determined by the Company) amounts to reimburse the Company in full for Executive’s personal use of any Company-provided aircraft, car or driver in respect of 2013 (such reimbursable amounts to be calculated in a manner consistent with the reimbursement methodology used in respect of 2012, as reasonably determined by the Company).  For the avoidance of doubt, in the event of Executive’s death prior to the time when all payments under this Section 

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2 have been made, Executive’s estate shall receive such payments not already paid to Executive in accordance with this Section 2.
3.    General Release of Claims.  
(a)    In consideration of the Company’s promises, covenants and agreements set forth in this Agreement, including the payment and benefits set forth in Section 2(c) through (f), which Executive hereby acknowledges are not otherwise owed to Executive but for Executive’s release of Claims (as defined below) set forth herein, and for other good and valuable consideration, receipt of which is hereby acknowledged, Executive hereby knowingly, voluntarily and irrevocably releases, waives and forever discharges, to the fullest extent permitted by law, on Executive’s own behalf and on behalf of Executive’s agents, assignees, attorneys, heirs, executors, administrators and anyone else claiming by or through Executive (collectively, the “Releasors”), the Company and each of its affiliates, subsidiaries, predecessors, successors and assigns, and each of its and their respective past or present stockholders, members and other equity holders, and each of its and their respective past or present directors, managers, executives, officers, insurers, attorneys, employees, consultants, agents and employee benefits plans, and trustees, fiduciaries, and administrators of those plans (collectively, the “Released Parties”), of and from any and all claims, charges, complaints, liens, demands, causes of action, obligations, damages (including consequential, punitive or exemplary damages), liabilities or the like of whatever nature (including attorneys’ fees and costs), whether under local, state or federal law or equity or otherwise, whether known or unknown, and whether asserted and unasserted (collectively, “Claims”), that Executive and/or any of the other Releasors have or may have against any of the Released Parties arising on or prior tothe Effective Date or in any way relating to or arising out of any aspect of Executive’s employment with the Company, separation from employment with the Company or Executive’s treatment by the Company while in the Company’s employ, including all Claims for or related to:
(i)    salary and other compensation or benefits, including overtime if applicable, incentive (cash or equity) compensation, bonuses, severance pay or vacation pay, or any benefits under the Employee Retirement Income Security Act of 1974, or any other local, state or federal law; 
(ii)    discrimination, harassment or retaliation based upon race, color, national origin, ancestry, religion, marital status, sex, sexual orientation, citizenship status, pregnancy or any pregnancy-related disability, family status, leave of absence (including the Family Medical Leave Act or any other federal, state or local leave laws), handicap (including The Rehabilitation Act of 1973), medical condition or disability, or any other characteristic covered by law under Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Americans with Disabilities Act, Sections 1981 through 1988 of the Civil Rights Act of 1866, and any other federal, state, or local law prohibiting discrimination in employment, the Worker Adjustment and Retraining Notification Act, or any other federal, state or local law concerning plant shutdowns, mass layoffs, reductions in force or other business restructuring;
(iii)    discrimination, harassment or retaliation based upon age under the Age Discrimination in Employment Act as amended by the Older Workers Benefit Protection Act of 1990 (the “ADEA”), or under any other federal, state, or local law prohibiting age discrimination;
(iv)    matters arising under the Sarbanes-Oxley Act of 2002 and any other federal, state or local whistleblower laws;
(v)    breach of implied or express contract (whether written or oral), breach of promise, misrepresentation, fraud, estoppel, waiver or breach of any covenant of good faith and fair dealing, including breach of any express or implied covenants of or under the Employment Agreement;

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(vi)    defamation, negligence, infliction of emotional distress, violation of public policy, wrongful or constructive discharge, or any employment-related tort recognized under any applicable local, state, or federal law;
(vii)    any violation of any Fair Employment Practices Act, Equal Rights Act, Civil Rights Act, Minimum Fair Wages Act, Payment of Wages Act or any comparable federal, state or local law;
(viii)    any violation of the New York State Human Rights Law, New York Labor Act, New York Equal Pay Act, New York City Human Rights Law, New York Civil Rights Law, New York Rights of Persons with Disabilities Law, New York Sexual Orientation Non-Discrimination Act, New York Equal Rights Law, the New York State Workers’ Compensation and Disability Benefit Laws (including the retaliation provisions thereof), and New York City Administrative Code and Charter, or any comparable federal, state or local law; 
(ix)    costs, fees, or other expenses, including attorneys’ fees; and
(x)    any other Claim of any kind whatsoever, including any claim that this Agreement was induced or resulted from any fraud or misrepresentation by the Company.
Notwithstanding the foregoing, Executive is not hereby releasing, waiving or discharging: (i) any Claims or rights to enforce this Agreement against the Company; (ii) any Claim for indemnification by the Company pursuant to Section 8 of the Employment Agreement or under the Company’s certificate of incorporation or bylaws, in each case, to the extent provided therein; and (iii) any Claims that Executive cannot lawfully release.  Notwithstanding the foregoing, Executive is also not hereby releasing, waiving or discharging Executive’s right to file a charge with an administrative agency (including the Equal Employment Opportunity Commission and the National Labor Relations Board) or participate in any agency investigation.  Executive is, however, hereby releasing, waiving and forever discharging Executive’s right to recover money or other damages in connection with any such charge or investigation.  Executive is also hereby releasing, waiving and forever discharging Executive’s right to recover money in connection with a charge filed by any other individual or by the Equal Employment Opportunity Commission, National Labor Relations Board or any other federal, state or local agency.
(b)    BY AGREEING TO THE RELEASE CONTAINED IN THIS AGREEMENT EXECUTIVE HEREBY KNOWINGLY, VOLUNTARILY AND IRREVOCABLY WAIVES ANY RIGHTS (KNOWN OR UNKNOWN) TO BRING OR PROSECUTE A LAWSUIT OR MAKE ANY LEGAL CLAIM AGAINST ANY OF THE RELEASED PARTIES WITH RESPECT TO ANY OF THE CLAIMS RELEASED, WAIVED OR DISCHARGED IN SECTION 3(A).  Executive agrees that the release set forth herein will bar all Claims of every kind, known or unknown, released, waived or discharged in Section 3 and further agrees that no non-governmental person, organization or other entity acting on Executive’s behalf has in the past or will in the future file any lawsuit, arbitration or proceeding asserting any Claim that is released, waived or discharged under this Agreement.  If Executive initiates, files or pursues a lawsuit, arbitration or other proceeding asserting any Claim released, waived or discharged under this Agreement: (i) Executive will pay for all costs, including reasonable attorneys’ fees, incurred by any of the Released Parties in defending against such Claim (unless such Claim is a charge with the Equal Employment Opportunity Commission or the National Labor Relations Board); (ii) Executive gives up any right to damages in connection with any administrative, arbitration or court proceeding; and (iii) if Executive is awarded damages, Executive will assign to the Company Executive’s right, title and interest in and to all such damages.  Executive acknowledges that he has been advised that the Company has decided to make changes to certain senior-level positions and related staff positions in the Company’s New York office following an assessment of the Company’s business needs (and acknowledges receipt of Attachment A).  Notwithstanding the foregoing, this Section 3(b) does not limit Executive’s right to challenge the validity of this Agreement in a legal proceeding under the Older Workers Benefit Protection Act, 29 U.S.C. § 626(f), with respect to claims under the ADEA.  This 

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Section 3(b) also is not intended to and shall not limit the right of a court to determine, in its discretion, that the Company is entitled to restitution, recoupment or setoff of any payments made to Executive by the Company should this Agreement be found to be invalid as to the release of claims under the ADEA.  
(c)    Executive agrees that Executive shall not solicit, encourage, assist or participate (directly or indirectly) in bringing any Claims against any of the Released Parties by other current or former employees, officers or other third parties, except as compelled by subpoena or other court order or legal process, and only after providing the Company with prior notice of any such subpoena, order or legal process and an opportunity to timely contest such process.
(d)    Executive represents, warrants and agrees that Executive has not filed, instituted, prosecuted or maintained any administrative, judicial or other Claim, suit or legal or other proceeding against any of the Released Parties, and that Executive will not file, institute, prosecute or maintain such a Claim, suit or proceeding at any time hereafter based on any events, actions or omissions occurring on or prior to the Effective Date.  Executive understands and agrees that this Agreement will be pleaded as a full and complete defense to any such Claim, suit or proceeding that is or may be filed, instituted, prosecuted or maintained by Executive or any other Releasor.
4.    Affirmations.  Executive hereby acknowledges and agrees that:
(a)    Executive has no known workplace injuries or occupational diseases that Executive has not reported to the Company in writing and Executive either has been provided or Executive has not been denied any leave requested under the Family and Medical Leave Act or under any applicable Company policy or any local, state, or federal law;
(b)    Executive has not been involved in, has not complained of, and Executive is not aware of: (i) any fraudulent activity; (ii) any uncured failure of the Company’s books, records and accounts to accurately and fairly reflect transactions and dispositions of assets; or (iii) any violations of any gaming, anti-money laundering, anti-corruption, bribery, or competition law, which would form the basis of a claim of fraudulent or illegal activity by the Company or any other Released Party; and
(c)    If Executive breaches the provisions of this Agreement, then the Company will be entitled to an appropriate remedy against Executive, which may include injunctive relief and monetary damages, as well as the return of any payments, reimbursements or benefits Executive has received hereunder, and the payment of the Company’s legal fees. 
5.    Executive’s Cooperation.   
(a)    Executive agrees that Executive will provide reasonable assistance to, and will cooperate with, the Company and its subsidiaries and affiliates with respect to matters or issues which took place or arose during Executive’s tenure with the Company, including any attorney retained by any of them or any other representative acting on their behalf, in connection with any pending or future internal investigation or judicial, administrative or regulatory matter, proceeding or investigation.  The parties acknowledge and agree that such cooperation may include Executive making himself available for meetings, interviews, statements, testimony or the signing of affidavits, and providing to the Company any documents or information in Executive’s possession or under Executive’s control relating to any such litigation, regulatory matter or investigation, provided that any such meeting, interviews, statements or testimony do not unduly interfere with Executive’s work schedule or other post-Company duties.  The Company shall reimburse Executive promptly after Executive submits receipts or other documents reasonably acceptable to the Company for actual out-of-pocket expenses reasonably incurred by Executive and approved by the Company in connection with Executive’s performance under this Section 5 and otherwise in accordance with the Company’s reimbursement policy; provided, however, that Executive shall not be entitled hereunder to any 

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expense reimbursement for a reasonable amount of Executive’s time spent testifying or otherwise cooperating in any matter in which Executive is a defendant in the proceeding or a named subject or target of the litigation, regulatory matter, or investigation.
(b)    Executive represents and warrants that Executive has and will accurately, completely and truthfully disclose to the Company any and all materials and information requested, including in connection with any pending or future internal investigation or judicial, administrative or regulatory matter, proceeding or investigation involving conduct in which Executive was involved or had knowledge in connection with Executive’s employment with the Company.  In the event of a material breach of this Section 5, Executive agrees that the Company may, in its sole discretion, require Executive to (and, if it so requires, Executive shall) reimburse the Company in full any payments, reimbursements or benefits Executive has received under any provision of this Agreement.   
6.    Confidentiality of Agreement.  The parties agree that it is a material condition of this Agreement that Executive shall keep the terms of this Agreement strictly and completely confidential and that Executive will not directly or indirectly make or issue any private statement, press release or public statement, or communicate or otherwise disclose to any executive or employee of the Company or any of its subsidiaries (past, present or future) or to a member of the general public, the negotiations leading to, or the terms, amounts or facts of or underlying this Agreement, except as may be required by law or compulsory process; provided, however, that (a) Executive may disclose the terms of this Agreement to Executive’s immediate family, attorneys, and accountants or other financial advisors so long as they agree to abide by the foregoing confidentiality restriction and (b) Executive may disclose any information relating to this Agreement that the Company publicly discloses.  For the avoidance of doubt, nothing herein shall prohibit Executive from disclosing a copy of Section 6 of the Employment Agreement to the extent required by Section 6.1(c) of the Employment Agreement.  The Company shall not issue any press release or other public statement disclosing the terms set forth in this Agreement; provided, however, nothing herein shall restrict the Company from disclosing the existence of this Agreement (or the terms hereof) to the extent that the Company deems it necessary or advisable in connection with any applicable law, rule or regulation, including United States securities laws and rules or regulations of a securities exchange.
7.    Return of Company Property.  Executive agrees that Executive has or will surrender to the Company by the Separation Date all Company credit cards, parking cards, security badges, cell or “smart” phones, pagers, Blackberries, computer equipment (including tablet computers) and expense accounts, and that Executive will submit all outstanding travel vouchers, business expenses and the like no later than fourteen (14) days after the Separation Date.  Executive further agrees that Executive has returned or will return to the Company, on or before the Separation Date, and will not keep, maintain or permit any copy of, any other Company property, including any documents, papers, files or records in any media (whether stored on Company or personal property), but not including e-mail personally directed to Executive at the Company’s e-mail address, which may be in Executive’s possession, custody or control. 
8.    Non-Admissions.  The parties recognize that, by entering into this Agreement, neither the Company nor Executive admits, and each specifically denies, any violation of any local, state, federal, or other law, whether regulatory, common or statutory.
9.    Rights After Breach.  Executive agrees that, in the event that Executive materially breaches any provision of this Agreement or otherwise engages in (or, prior to the Execution Date, has engaged in) any other act or omission that has caused or may reasonably be expected to cause injury to the interest or business reputation of the Company, in addition to rights otherwise set forth in this Agreement: (a) the Company shall have the right to (i) offset or reduce or discontinue any payments, reimbursements, or benefits that he otherwise would be entitled to receive hereunder and (ii) demand repayment of or reimbursement for, and Executive shall immediately repay or reimburse the Company upon demand, any or all payments, reimbursements, or benefits paid or provided to Executive hereunder; and (b) the Released Parties shall be entitled to file counterclaim(s) against Executive in the event of Executive’s breach of the covenant not to sue contemplated by this Agreement and may recover from Executive any 

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repayment or reimbursement not made to the Company, as required by Section 9(a), as well as any and all other resulting actual or consequential damages, including attorneys’ fees and costs.
10.    Waiver of Breach.  One or more waivers of a breach of any covenant, term or provision of this Agreement by any party shall not be construed as a waiver of a subsequent breach of the same covenant, term or provision, nor shall it be considered a waiver of any other then existing or subsequent breach of a different covenant, term or provision.
11.    409A.  The Company makes no representations or warranties regarding the tax implications of the compensation and benefits to be paid to Executive under this Agreement, including under Section 409A of the Internal Revenue Code of 1986 (the “Code”), and applicable administrative guidance and regulations.  Section 409A of the Code governs plans and arrangements that provide “nonqualified deferred compensation” (as defined under the Code) which may include, among others, nonqualified retirement plans, bonus plans, stock option plans, employment agreements and severance agreements.  To the extent any payments of money or other benefits due to Executive under this Agreement could cause the application of an acceleration or additional tax under Section 409A of the Code, such payments or other benefits shall be deferred if deferral will make such payment or other benefits compliant under Section 409A of the Code, or otherwise such payments or other benefits shall be restructured, to the extent possible, in a manner determined by the Company that does not cause such acceleration or additional tax.  To the extent any reimbursements or in-kind benefits due to Executive under this Agreement constitute deferred compensation under Section 409A of the Code, any such reimbursements or in-kind benefits shall be paid to Executive in a manner consistent with Treas. Reg. Section 1.409A-3(i)(1)(iv).  Each payment made under this Agreement shall be designated as a “separate payment” within the meaning of Section 409A of the Code.  
12.    Enforcement and Arbitration.  
(a)    This Agreement shall be governed by and construed in accordance with the laws of the State of New York applicable to agreements made and to be wholly performed within that State, without regard to its conflict of laws provisions.  Executive and the Company agree that, except for any claim that is non-arbitrable under applicable law, final and binding arbitration shall be the exclusive forum for any dispute or controversy between them, including disputes arising under or in connection with this Agreement or Executive’s employment with, or separation from, the Company; provided, however, that the Company shall be entitled to commence an action in any court of competent jurisdiction for, and shall be entitled to, injunctive relief in connection with any alleged actual or threatened violation of any Surviving Provision, Section 16 or any other restrictive covenants relating to the Company to which Executive is subject following the Separation Date.  Judgment may be entered on the arbitrators’ award in any court having jurisdiction.  For purposes of entering such judgment or seeking injunctive relief with regard to any Surviving Provision, Section 16 or any other restrictive covenants relating to the Company to which Executive is subject following the Separation Date, the Company and Executive hereby consent to the jurisdiction of any or all of the following courts: (i) the United States District Court for the Southern District of New York; (ii) the Supreme Court of the State of New York, New York County; or (iii) any other court having jurisdiction; provided, that damages for any alleged violation of any Surviving Provision, Section 16 or any other restrictive covenants relating to the Company to which Executive is subject following the Separation Date, as well as any claim, counterclaim, or cross-claim brought by the Executive or any third party in response to, or in connection with, any court action commenced by the Company seeking injunctive relief, shall remain exclusively subject to final and binding arbitration as provided for herein.  The Company and Executive hereby waive, to the fullest extent permitted by applicable law, any objection that either may now or hereafter have to such jurisdiction, venue, and any defense of inconvenient forum.  Thus, except for the claims excluded above, this Section 12 covers all common law and statutory claims (whether arising under federal state or local law), including any claim for breach of contract, fraud, fraud in the inducement, unpaid wages, wrongful termination, or unlawful discrimination on the basis of gender, age, national origin, sexual orientation, marital status, disability, or any other protected status.

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(b)    Any arbitration under this Agreement shall be filed exclusively with the American Arbitration Association in New York, New York before three arbitrators, in accordance with the National Rules for the Resolution of Employment Disputes of the American Arbitration Association in effect at the time of submission to arbitration.  The Company and Executive hereby agree that a judgment upon an award rendered by the arbitrators may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.  The Company shall pay all costs uniquely attributable to arbitration, including the administrative fees and costs of the arbitrators.  Subject to the last sentence of this Section 12(b), each party shall pay that party’s own costs and attorney fees, if any, unless the arbitrators rule otherwise.  Executive understands that he is giving up no substantive rights pursuant to this Section 12(b), and this Section 12(b) simply governs forum.  The prevailing party in any dispute, controversy or claim arising out of or related to this Agreement (or the Surviving Provisions) shall be entitled to recover its reasonable costs and attorney fees.
(c)    BY SIGNING THIS AGREEMENT, EXECUTIVE AND THE COMPANY ACKNOWLEDGE THAT THE RIGHT TO A COURT TRIAL AND TRIAL BY JURY IS OF VALUE, AND KNOWINGLY AND VOLUNTARILY WAIVE THAT RIGHT FOR ANY DISPUTE SUBJECT TO THE TERMS OF THE ARBITRATION PROVISIONS SET FORTH IN THIS SECTION 12.
13.    Severability.  If any provision or term of this Agreement, other than the Executive’s release set forth herein, is held to be illegal, invalid or unenforceable, then such provision or term shall be fully severable, this Agreement shall be construed and enforced as if such illegal, invalid or unenforceable provision had never constituted part of this Agreement, and the remaining provisions of this Agreement shall remain in full force and effect and shall not be affected by the illegal, invalid or unenforceable provision or by its severance from this Agreement.  Furthermore, in lieu of each such illegal, invalid or unenforceable provision or term, there shall be added automatically as a part of this Agreement another provision or term as similar to the illegal, invalid or unenforceable provision, as may be possible and that is legal, valid and enforceable.
14.    Entire Agreement.  This Agreement constitutes the entire Agreement of the parties, and supersedes all prior and contemporaneous negotiations, prior drafts of this Agreement and other agreements, oral or written, including whatever rights, if any, Executive may have had under the Employment Agreement (it being understood and agreed that the Surviving Provisions and Section 8 of the Employment Agreement shall survive the Separation Date as contemplated hereby and thereby and are incorporated herein by reference).  No representations, oral or written, are being relied upon by either party in executing this Agreement other than the express representations set forth in this Agreement.  This Agreement cannot be changed or terminated unless by express written agreement of the parties.  This Agreement may be executed by each party in separate counterparts, each of which shall be deemed an original and constitute one document.  
15.    Revocation and Effective Date.  Executive may accept this Agreement by delivering to the Company’s Chief Human Resources Officer, 750 Lexington Avenue, 25th Floor, New York, New York 10022, a faxed or PDF copy of this Agreement executed by Executive, no later than 5:00 p.m. Eastern Time on the date that is forty-five (45) days after this Agreement is initially delivered to Executive, unless a later date and time is mutually agreed (the date, if any, on which Executive executes and delivers a copy of this Agreement being the “Execution Date”), as long as Executive or his counsel delivers to the Company’s Chief Human Resources Officer (or such officer’s designee) within a reasonable time (but no more than three (3) business days) thereafter two originals of this Agreement executed by Executive on or before the Effective Date.  Executive acknowledges that if Executive does not accept this Agreement in the manner described above, it will be withdrawn and of no effect.  If Executive accepts this Agreement before the end of the forty-five (45) days permitted, Executive represents that Executive has done so voluntarily and with the advice of Executive’s attorney.  Executive may revoke Executive’s acceptance of this Agreement within seven (7) days of the Execution Date by delivery of written notice to the Company’s Chief Human Resources Officer, by 5:00 p.m. on the seventh (7th) day following the Execution Date.  Executive acknowledges and agrees that, if Executive revokes Executive’s acceptance of this Agreement, Executive shall receive none of the payments or benefits contemplated hereunder and this Agreement shall be null and void, having have no further force 

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or effect, and that this Agreement will not be admissible as evidence in any judicial, administrative or arbitral proceeding or trial.  Executive further acknowledges that if the Company’s Chief Human Resources Officer does not receive from Executive written notice of Executive’s revocation prior to the expiration of seven (7) days of the Execution Date, Executive shall have forever waived Executive’s right to revoke this Agreement, and it shall thereafter have full force and effect as of the eighth (8th) day after the Execution Date (the “Effective Date”).
16.    Non-Disparagement.  At no time shall Executive knowingly make any statement (whether written or oral), or knowingly encourage any other person to make any statement, disparaging the performance, conduct, character or business reputation of the Released Parties or any of them.  Nothing contained herein shall preclude Executive from providing truthful testimony or statements as required by law or legal process or in response to an investigation by a governmental, regulatory or self-regulatory body.
17.    Joint Drafting.  In recognition of the fact that the parties had an opportunity to negotiate the language of, and draft, this Agreement, the parties acknowledge and agree that there is no single drafter of this Agreement and, therefore, the general rule that ambiguities are to be construed against the drafter is, and shall be, inapplicable.  If any language in this Agreement is found or claimed to be ambiguous, each party shall have the same opportunity to present evidence as to the actual intent of the parties with respect to any such ambiguous language without any inference or presumption being drawn against either party.
18.    Interpretation.  If any provision of this Agreement conflicts with any provision of the Employment Agreement, the provision of this Agreement shall control and prevail.  When a reference is made in this Agreement to any agreement, contract, document, instrument or other record, such reference shall be to such agreement, contract, document, instrument or other record as it may be amended, modified, supplemented or restated from time to time.  When a reference is made in this Agreement to any person, such reference shall be construed to include such person’s successors and permitted assigns.  The word “will” in this Agreement shall be construed to have the same meaning and effect as the word “shall.”  When a reference is made in this Agreement to a Section or Attachment, such reference shall be to a Section or Attachment of this Agreement unless otherwise indicated.  Whenever the words “include,” “includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation,” unless the context otherwise indicates.  When a reference in this Agreement is made to a “party” or “parties,” such reference shall be to a party or parties to this Agreement unless otherwise indicated.  Unless the context requires otherwise, (a) the terms “hereof,” “herein,” “hereby,” “hereto”, “hereunder” and derivative or similar words in this Agreement refer to this entire Agreement, (b) the word “or” is disjunctive but not exclusive and (c) words in this Agreement using the singular or plural number also include the plural or singular number, respectively, and the use of any gender herein shall be deemed to include the other genders.  References in this Agreement to “dollars” or “$” are to U.S. dollars.  When a reference is made in this Agreement to a law, statute or legislation, such reference shall be to such law, statute or legislation as it may be amended, modified, extended or re-enacted from time to time (including any successor law, statute or legislation) and shall include any regulations promulgated thereunder from time to time.  The headings used herein are for reference only and shall not affect the construction of this Agreement.  
19.    Acknowledgment.
(a)    By executing this Agreement, Executive acknowledges that (i) Executive has had the opportunity to consider the terms of this Agreement for at least forty-five (45) days from the date this Agreement has been initially delivered to Executive, and has either considered this Agreement and its terms for that period or has knowingly and voluntarily waived Executive’s right to do so; (ii) Executive has been advised by the Company pursuant to this Agreement to consult with an attorney regarding the terms of this Agreement; (iii) Executive has consulted with an attorney or, in the alternative, waives Executive’s right to do so, regarding the terms of this Agreement; (iv) any and all questions regarding the terms of this Agreement have been asked and answered to Executive’s complete satisfaction; (v) Executive has read this Agreement; (vi) the consideration provided for herein is good and valuable; and (vii) Executive is entering into this Agreement voluntarily, of Executive’s own free will, and without any coercion, undue influence, threat or 

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intimidation of any kind or type whatsoever.  Executive further acknowledges and agrees that any revisions to this Agreement made prior to the Effective Date are not material and shall not be deemed to affect the amount of time Executive has to consider this Agreement, and Executive hereby voluntarily waives additional time for review, if any, with respect to any such revisions.
(b)    Executive hereby acknowledges and confirms that Executive has read all fifteen (15) pages of this Agreement and hereby freely and voluntarily assents to all the terms and conditions in this Agreement, and signs the same as Executive’s own free act with the full intent of accepting the benefits contemplated hereby in return for releasing the Released Parties from all Claims to the extent contemplated herein.
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IN WITNESS WHEREOF, each of the parties has caused this Agreement to be executed on such party’s behalf as of the date written below.

  /s/ A. Lorne Weil                                Date: December 30, 2013    
A. Lorne Weil

SCIENTIFIC GAMES CORPORATION

By: /s/ Andrew E. Tomback                     Date: December 31, 2013    
Name:    Andrew E. Tomback
Title: Senior Vice President & General Counsel

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