Document:

exv10w4

Exhibti 10.4

Wintrust Financial Corporation

Cash Incentive and Retention Award Agreement

(Minimum Payout Amount: None)

(Periodic Vesting)

Cycle I (2008-2012)

[Award Date]

 

 

Wintrust Financial Corporation

Cash Incentive and Retention Award Agreement

(Minimum Payout Amount: None)

(Periodic Vesting)

          THIS AGREEMENT, effective as of [award date] represents the grant of a long-term cash
incentive and retention award (“CIR Award”) by Wintrust Financial Corporation (the “Corporation”),
to the Participant named below, pursuant to the provisions of the 2008 Long-Term Cash Incentive and
Retention Plan (the “Plan”) or any amended or successor plan thereto. The cash payout ultimately
earned and paid, if any, for this CIR Award will be determined pursuant to Section 3 of this
Agreement.

     This Agreement is an Award Agreement as contemplated by the Plan, the terms and provisions of
which are incorporated herein by reference. All capitalized terms will have the meanings ascribed
to them in the Plan, unless specifically set forth otherwise herein. The parties hereto agree as
follows:

     1. Grant Information. The individual named below has been selected to receive a long-term CIR
Award as specified below:

	 	 	 	 	 
	 

	 	(a) Participant:	 	 
	 

	 	 
	 	 

	 
	 	 	 	 
	 

	 	(b) Target CIR Award:
	 	$                                                            
	 
	 	 	 	 
	 

	 	(c) Performance Measure:
	 	Earnings per share (“EPS”)

     2. Performance Period. The performance period commences on January 1, 2008, and ends on
December 31, 2012 (“Performance Cycle”).

     3. Performance Grid; Calculation of CIR Award. The CIR Award, if any, earned by the
Participant who remains continuously employed by the Corporation or any Subsidiary from the date of
this Agreement through the last day of the Performance Cycle will be equal to the Target CIR Award
amount set forth above, multiplied by the “Multiple” determined in accordance with the Performance
Grid set forth on Appendix A attached hereto, subject to a maximum amount equal to the Maximum CIR
Award Amount set forth on Appendix A. For example, if the sixty (60-) month cumulative earnings
per share at the end of 2012 is $18.00, the Participant will earn two-hundred twenty percent (220%)
of the Target CIR Award amount as set forth in Section 1(b) of this Agreement.

     The amount of CIR Award earned will be determined after the conclusion of the Performance
Cycle by the Compensation Committee of the Board of Directors (the “Committee”), in its sole
discretion, based on the performance of the Corporation, calculated using the Performance Grid.
Earned CIR Awards will be paid in accordance with Section 5 below.

1

 

     For purposes of this Agreement, “Earnings Per Share” or “EPS” shall mean the Corporation’s
“primary earnings per share,” as determined on a fully-diluted basis in accordance with generally
accepted accounting principles, consistently applied, as publicly reported by the Corporation on
its fiscal year financial reports. Cumulative EPS will be equal to the sum of the EPS for each of
the five years in the Performance Cycle.

     The Committee shall have the authority to modify the calculation of Cumulative EPS and the
Cumulative EPS objectives set forth in the Performance Grid in Section 3 of this Agreement, in the
Committee’s good faith discretion, as the Committee deems appropriate in connection with any
repurchases by the Corporation of its Common Stock from shareholders, acquisition, reorganization,
recapitalization, merger, consolidation, spin-off, extraordinary dividend or other distribution, or
similar transaction; provided, however, that the Committee shall make such adjustments in the event
of a stock dividend or stock split, reverse stock split or similar change in the capital structure
of the Corporation, in order to prevent the dilution or enlargement of rights.

     4. Effect of Termination of Employment during the Performance Cycle. In the event the
Participant does not remains continuously employed by the Corporation or any Subsidiary from the
date of this Agreement through the last day of the Performance Cycle, then the amount, if any,
payable to the Participant (or, in the event of death, the Participant’s beneficiary) under this
Agreement will be determined in accordance with this Section 4 and paid in accordance with Section
5 below. For purposes of this Section 4, “vested percentage” means the percentage determined in
accordance with Vesting Table set forth on Appendix A.

          Termination for Cause. Termination of the Participant’s employment during the
Performance Cycle by the Corporation for cause will result in immediate forfeiture of the CIR
Award, with no payment to the Participant. For purposes of this Agreement, “cause” shall have
the same meaning given to such term under an employment or similar agreement applicable to the
Participant and, in the absence of such an agreement or definition of “cause” therein, “cause”
shall have the meaning set forth on Appendix B attached hereto.

          Disability or Death; Termination not for Cause; Resignation. If the
Participant’s employment terminates as a result of disability or death during the Performance
Cycle or if the Participant’s employment is terminated during the Performance Cycle for any
other reason other than termination by the Corporation for cause, the Participant (or, in the
event of death, the Participant’s beneficiary) will receive the vested percentage of the
Truncated CIR Award Amount described below. For purposes of this Agreement the term disability
shall have the same meaning given to such term in the Corporation’s Long-Term Disability Plan,
or any successor plan.

          Retirement. If the Participant’s employment terminates during the Performance
Cycle in circumstances constituting Retirement (as defined on Appendix B) and the Participant
remains Retired from the Industry (as defined on Appendix B) through the end of the
Performance Cycle, then, in addition to the vested percentage of the Truncated CIR Award
Amount described above, the Participant will be eligible to receive an amount equal to the
Participant’s vested percentage multiplied by Top-Up Amount, if any, described below.

2

 

     The “Truncated CIR Award Amount” is the amount, if any determined by multiplying the Target
CIR Award set forth in Section 1(b) above by the applicable Multiple determined by reference to the
Performance Grid and based on the Compound Annual Growth Rate of EPS achieved during the
Performance Cycle through the end of the fiscal year which coincides with or immediately precedes
the date on which termination of employment occurs. For example, if the termination of employment
occurs in 2010, and the Compound Annual Growth Rate of EPS achieved through the end of 2009 is 11%,
then the applicable multiple would be one hundred forty percent (140%).

     The “Top Up Amount” is the positive amount, if any, by which the CIR Award that the
Participant would have earned at the end of the Performance Cycle based on actual performance
during the full Performance Cycle exceeds the Truncated CIR Award Amount described above.

     5. Payment of Earned Incentive Award. Unless deferred in accordance with procedures set forth
by the Committee and otherwise subject to the requirements set forth in the Plan relating to Code
Section 409A, the earned CIR Award determined in accordance with Section 3 above will be paid to
the Participant as soon as practicable after the end of the Performance Cycle and the Compensation
Committee’s determination of amount of the earned CIR Award; provided that such payment shall be
made no later than March 15th of the calendar year following the end of the Performance Cycle. Any
Top Up Amount payable to a retired Participant shall be paid at the same time as the earned CIR
Award would have been paid in accordance with this paragraph.

     Unless deferred in accordance with procedures set forth by the Committee and otherwise subject
to the requirements set forth in the Plan relating to Code Section 409A, the amounts determined and
payable in accordance with Section 4 prior to the end of the Performance Cycle in the event of
termination of employment during the Performance Cycle shall be payable as follows: if the date of
termination of employment occurs prior to July 1 of a calendar year, payment shall be made (without
interest) as soon as practicable after December 31 of such year, provided that such payment shall
be made no later than March 15th of the calendar year following such termination of employment; and
if such termination occurs after June 30 of a calendar year, such payment shall be made as soon as
practicable after July 1 of the following calendar year, provided such payment shall be made no
later than December 31 of such following calendar year.

     6. Change in Control of the Corporation. In the event of a Change in Control during the
Performance Cycle, the Participant will be paid a CIR Award under this Agreement. The amount of
such CIR Award will be determined in the same manner as a Truncated CIR Award Amount described in
Section 4 above, based on the Compound Annual Growth Rate of EPS though the last day of the
calendar year coinciding with or next preceding the date of the Change of Control. For example, if
the Change of Control occurs during the third quarter of 2009, and the Compound Annual Growth Rate
in EPS at the end of 2008 was 8% then the applicable multiple would be one hundred ten percent
(110%). The amount of the CIR Award determined in accordance with this Section 6 shall not be
subject to proration and shall be paid in full to the Participant upon or within 15 days after the
date of the Change of Control.

3

 

     7. Nontransferability. The CIR Award may not be sold, transferred, pledged, assigned or
otherwise alienated or hypothecated (“Transfer”) other than by will or by the laws of descent and
distribution, except as provided in the Plan. If any Transfer, whether voluntary or involuntary, of
an CIR Award is made, the Participant’s right to such CIR Award will be immediately forfeited to
the Corporation, and this Agreement will lapse.

     8. Tax Withholding. The Corporation will have the power and the right to deduct or withhold,
or require the Participant or the Participant’s beneficiary to remit to the Corporation, an amount
sufficient to satisfy federal, state, and local taxes, domestic or foreign, required by law or
regulation to be withheld with respect to any taxable event arising as a result of this Agreement.

     9. Administration. This Agreement and the Participant’s rights hereunder are subject to all
the terms and conditions of the Plan, as the same may be amended from time to time, as well as to
such rules and regulations as the Committee may adopt for administration of the Plan. It is
expressly understood that the Committee is authorized to administer, construe, and make all
determinations necessary or appropriate to the administration of the Plan and this Agreement, all
of which will be binding upon the Participant.

     10. Continuation of Employment. This Agreement will not confer upon the Participant any right
to continuation of employment by the Corporation or its subsidiaries, nor will this Agreement
interfere in any way with the Corporation’s or its subsidiaries’ right to terminate the
Participant’s employment at any time.

     11. Amendments. The Plan is discretionary in nature and the Committee may terminate, amend, or
modify the Plan or this Agreement; provided, however, that no such termination, amendment, or
modification of the Plan or this Agreement may adversely affect in any material way the CIR Award
subject to this Agreement without the Participant’s written approval, except amendments or
modifications made in accordance with Section 3 or required to conform to laws.

     12. Amendment to this Agreement. Any amendment and/or termination of this Agreement will not
accelerate a payment date if such amendment or termination would subject such amounts to taxation
under Code Section 409A.

     13. Successor. All obligations of the Corporation under the Plan and this Agreement, with
respect to the CIR Award, will be binding on any successor to the Corporation, whether the
existence of such successor is the result of a direct or indirect purchase, merger, consolidation,
or otherwise, of all or substantially all of the business and/or assets of the Corporation.

     14. Severability. The provisions of this Agreement are severable and if any one or more
provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the
remaining provisions will nevertheless be binding and enforceable.

4

 

     15. Applicable Laws and Consent to Jurisdiction. The validity, construction, interpretation,
and enforceability of this Agreement will be determined and governed by the laws of the State of
Illinois without giving effect to the principles of conflicts of law. For the purpose of litigating
any dispute that arises under this Agreement, the parties hereby consent to exclusive jurisdiction
and agree that such litigation will be conducted in the federal or state courts of the State of
Illinois.

     16. Restrictions and Clawback. This Award shall be subject to forfeiture and cancellation in
the discretion of the Committee upon the occurrence of the any of the events described in clauses
(a) through (e) of Section 8(e) of the Plan prior to the payment of any amounts under this
Agreement. If any such event occurs within one year after the payment of any amount under this
Agreement, then upon demand from the Committee, the Participant shall reimburse the Corporation the
amount of any such payment. Payments under this Agreement shall also be subject to repayment to
the Corporation in upon the occurrence of events described in the final sentence of Section 8(e) of
the Plan.

     IN WITNESS WHEREOF, the parties have caused this Agreement to be executed effective as of
[award date].

	 	 	 	 	 	 	 
	 	 	Wintrust Financial Corporation	 	 
	 
	 	 	 	 	 	 
	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 
	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	     Participant	 	 

5

 

Appendix A to Cash Incentive and Retention Award Agreement

(Minimum Payout Amount: None)

(Periodic Vesting)

Cumulative EPS Performance Grid for Cycle I (2008-2012)

	 	 	 	 	 
	Compound Annual	 	 	 	 
	Growth Rate	 	 	 	Multiple of Target
	Range	 	Cumulative EPS1	 	CIR Award
	 
	 	 	 	 	 
	20.0% or greater
	 	$20.00 or greater
	 	300%
	 	 	 	 	 
	17.5% – 19.99%
	 	$18.65 – $19.99
	 	260%
	 	 	 	 	 
	15.0% – 17.49%
	 	$17.37 – $18.64
	 	220%
	 	 	 	 	 
	12.5% – 14.99%
	 	$16.17 – $17.36
	 	180%
	 	 	 	 	 
	10.0% – 12.49%
	 	$15.04 – $16.16
	 	140%
	 	 	 	 	 
	7.5% – 9.99%
	 	$13.99 – $15.03
	 	110%
	 	 	 	 	 
	5.0% – 7.49%
	 	$13.00 – $13.98
	 	70%
	 	 	 	 	 
	<5.0%
	 	<$13.00
	 	0%

     For purposes of this Appendix A, the “Maximum Payout Amount” is 300% times the Target CIR
Award.

 

			
	1	 	This column reflects the cumulative EPS for the five
years, assuming a CAGR equal to the amount set forth in the left hand column
and a starting point equal to 2007 EPS of $2.24.

6

 

Vested Percentage Table

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Termination	 	Termination	 	Termination	 	Termination	 	Termination
	 	 	Occurs in	 	Occurs in	 	Occurs in	 	Occurs in	 	Occurs in
	 	 	2008	 	2009	 	2010	 	2011	 	2012
	 
	 	 	 	 	 	 	 	 	 	 	 
	Vested Percentage
	 	0%
	 	20%
	 	40%
	 	60%
	 	80%

     For purposes of the Vested Percentage Table, if the date of termination of a Participant’s
employment (that is, his or her last day of employment) is December 31 of such year, the
termination of employment will be deemed to occur in the following year.

7

 

Appendix B to Cash Incentive and Retention Award Agreement

Definitions

For purposes of this Agreement, “cause” shall mean the following:

	 	(i)	 	misappropriation of any funds or
property of the Corporation or its subsidiaries; or

	 
	 	(ii)	 	attempting to obtain any personal profit from any transaction in which the Key
Employee has a personal financial interest, unless the Key Employee shall have
first obtained the consent of the Board of Directors; or

	 
	 	(iii)	 	material neglect or refusal to perform the duties reasonably assigned to the Key
Employee given the Key Employee’s current job description;
or

	 
	 	(iv)	 	participating in a course of conduct which is injurious to the Corporation or its
subsidiaries, as interpreted by the Board of Directors; or

	 
	 	(v)	 	being convicted of a felony; or
	 
	 	(vi)	 	being adjudicated a bankrupt; or
	 
	 	(vii)	 	suspension due to the direction of any authorized bank regulatory agency.

To the extent that there is a dispute arising over the application of the definition of Cause, the
Committee or the Board of Directors of the Corporation shall have the authority to interpret and
apply such definitions in a reasonable manner.

For purposes of this Agreement, the termination of a Participant’s employment shall be deemed a
“Retirement” if such termination of the Participant’s employment is for any reason other
than death, disability or termination by the Corporation for cause, and such termination occurs on
or after age 65, or on or after age 55 and, as of the date of termination, the sum of the
Participant’s attained age as of his or her most recent birthday and full and completed years of
service with the Corporation or any Subsidiary (including for this purpose continuous years of
service, if any, with a Subsidiary as of the date such Subsidiary was acquired by the Corporation)
equals or exceeds 75.

8

 

The Participant shall be deemed to be “Retired from the Industry” so long as such
Participant (A) does not thereafter perform services as an employee, officer, director or
consultant for, or in any other capacity assist, any bank, thrift, bank or thrift holding
Corporation, asset management Corporation, trust Corporation, investment advisor, or any other
financial services Corporation (other than the Corporation or a Subsidiary), whether existing or in
formation, that provides or plans to provide banking or other financial services, including but not
limited to, those relating to loans, deposits, treasury management, custodial or trust services, or
investment or wealth management services within the Chicago or Milwaukee metropolitan area, and (B)
certifies to the Corporation, at such times and in such manner as the Committee may require, that
since Participant’s’ Retirement, Participant has not performed any such services.

9exv10w5

Exhibit 10.5

EXECUTION
COPY

STOCK PURCHASE AGREEMENT

          STOCK PURCHASE AGREEMENT, dated as of June 4, 2008 (this “Agreement”), by and between
Ian M. Cumming (the “Seller”) and Jefferies Group, Inc. (the “Purchaser”).

W
I T N E S S E T H :

          WHEREAS, the Seller is the owner of Six Hundred Fifty Thousand (650,000) common shares (the
“Shares”), $1.00 par value, of Leucadia National Corporation, a New York corporation (the
“Issuer”); and

          WHEREAS, the Shares are “Exchange Shares” as such term is defined in the Agreement and
Plan of Reorganization dated February 23, 1989 (the “Plan”) between the Issuer and TLC
Associates, Inc. a New York general partnership that was dissolved effective May 31, 1990, of which
the Seller was a general partner; and

          WHEREAS, as Exchange Shares, the Shares are subject to registration rights as set forth in
Exhibit 1 to the Plan (the “Registration Rights”); and

          WHEREAS, the Seller has agreed to sell to the Purchaser, and the Purchaser has agreed to
purchase from the Seller, all of the Seller’s right, title and interest in and pertaining to the
Shares for an aggregate purchase price of $31,817,500 (the “Purchase Price”), all upon the
terms and conditions hereinafter set forth;

          NOW, THEREFORE, in consideration of the premises and the covenants hereinafter contained, it
is agreed as follows:

1. PURCHASE AND SALE

          1.1 Purchase and Sale . Subject to the terms and conditions set forth in this
Agreement, the Purchaser agrees to purchase from the Seller, and the Seller agrees to sell,
transfer and assign to the Purchaser, on the Closing Date (as defined below), all of the Seller’s
right, interest and title in the Shares and the Registration Rights applicable to the Shares for
the Purchase Price. On the Closing Date, the Purchaser shall pay the Purchase Price to the Seller
by a wire transfer of immediately available funds into an account designated by such Seller.

          1.2 The Closing.

          (a) The closing of the purchase and sale of the Shares and the other transactions contemplated
hereby (the “Closing”) shall take place on June 4, 2008, or such date and time as shall be
mutually agreed to by the parties hereto, subject to the satisfaction or waiver of the conditions
set forth in Section 4 hereof (the “Closing Date”).

          (b) At the Closing:

 

 

               (i) the Seller shall deliver, or cause to be delivered, to the Purchaser (A) one or more stock
certificates representing the Shares, duly registered in the name of the Purchaser, (B) the opinion
as set forth in Section 4.1(b), (C) such documents or agreements, in such form reasonably
satisfactory to Purchaser, evidencing the Issuer’s obligation to register under the Securities Act
of 1933, as amended (the “Securities Act”) the resale by the Purchaser of the Shares and
(D) all such other documents and instruments, if any, that are mutually determined by the Seller
and the Purchaser to be necessary to effectuate the transactions contemplated by this Agreement;
and

               (ii) the Purchaser shall deliver, or cause to be delivered, to the Seller (A) a wire transfer
of immediately available funds into an account designated by the Seller in the amount of the
Purchase Price and (B) all such other documents and instruments, if any, that are mutually
determined by such Seller and the Purchaser to be necessary to effectuate the transactions
contemplated by this Agreement.

2. PURCHASER’S REPRESENTATIONS AND WARRANTIES

          The Purchaser makes the following representations and warranties to the Seller, each and all
of which shall survive the execution and delivery of this Agreement and the Closing hereunder:

          2.1 Authority; Binding Effect. The Purchaser has the requisite corporate power and
authority to execute and deliver this Agreement and to perform its obligations hereunder. This
Agreement has been duly and validly executed and delivered by the Purchaser and (assuming the due
execution and delivery thereof by the Seller) constitutes the legal, valid and binding obligation
of the Purchaser, enforceable against the Purchaser in accordance with its terms.

          2.2 No Conflicts. The execution and delivery by the Purchaser of this Agreement and
the performance by the Purchaser of its obligations hereunder will not conflict with, constitute a
default under or violate (1) any of the terms, conditions or provisions of the certificate of
incorporation or by-laws of the Purchaser, (2) any of the terms, conditions or provisions of any
document, agreement or other instrument to which the Purchaser is a party or by which it is bound,
(3) any law or regulation applicable to the Purchaser, including but not limited to, the Securities
Act and the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or (4) any
judgment, writ, injunction, decree, order or ruling of any court or governmental authority binding
on the Purchaser.

          2.3 No Consents. No consent, approval, waiver, license or authorization or other
action by or filing with any governmental authority is required in connection with the execution
and delivery by the Purchaser of this Agreement, the consummation by the Purchaser of the
transactions contemplated hereby or the performance by the Purchaser of its obligations hereunder.

 

 

          2.4 Investment Intention; Accredited Investor. The Purchaser is an “accredited
investor” (as that term is defined in Rule 501 of Regulation D under the Securities Act) and by
reason of its business and financial experience, it has such knowledge, sophistication and
experience in business and financial matters as to be capable of evaluating the merits and risks of
the prospective investment, is able to bear the economic risk of such investment and is able to
afford a complete loss of such investment. The Purchaser is purchasing the Shares for its own
account, for investment purposes and not with a view to the distribution thereof other than
pursuant to an offering registered pursuant to the Securities Act or pursuant to an exemption
therefrom.

          2.5 No Reliance or Solicitation. Except as are set forth in this Agreement, the
Purchaser has not received any representations or warranties from the Seller or his representatives
or agents concerning the Issuer, the Shares or the transaction contemplated hereby. The Purchaser
is not purchasing the Shares as a result of (1) any advertisement, article, notice or other
communication published in any newspaper, magazine or similar media or broadcast over television or
radio or (2) any seminar or meeting whose attendees, including the Purchaser, had been invited as a
result of any of the foregoing.

          2.6 No Securities Act Registration. The Purchaser understands that the Seller may be
deemed to be an “affiliate” of the Issuer (as such term is defined in Rule 144 under the Securities
Act). The Purchaser understands that the Shares to be acquired by it have not been registered
under the Securities Act and may not be sold or otherwise transferred without registration under
the Securities Act or pursuant to an exemption from such registration requirements.

3. SELLER’S REPRESENTATIONS AND WARRANTIES

          The Seller makes the following representations and warranties to the Purchaser, each and all
of which shall survive the execution and delivery of this Agreement and the Closing hereunder:

          3.1 Authority; Binding Effect. The Seller has the legal capacity to execute and
deliver this Agreement and to perform his obligations hereunder. This Agreement has been duly and
validly executed and delivered by the Seller and (assuming the due execution and delivery thereof
by the Purchaser) constitutes the legal, valid and binding obligation of the Seller, enforceable
against the Seller in accordance with its terms.

          3.2 No Conflicts. The execution and delivery by the Seller of this Agreement and the
performance by the Seller of his obligations hereunder will not conflict with, constitute a default
under or violate (1) any of the terms, conditions or provisions of any document, agreement or other
instrument to which the Seller is a party or by which he is bound, (2) any law or regulation
applicable to the Seller, including but not limited to, the Securities Act and the Exchange Act, or
(3) any judgment, writ, injunction, decree, order or ruling of any court or governmental authority
binding on the Seller.

 

 

          3.3 No Consents. No consent, approval, waiver, license or authorization or other
action by or filing with any governmental authority is required in connection with the execution
and delivery by the Seller of this Agreement, the consummation by the Seller of the transactions
contemplated hereby or the performance by the Seller of his obligations hereunder, other than
filings by the Seller under Section 13 and Section 16 of the Securities Exchange Act of 1934, as
amended. No consent, approval, waiver, authorization or other action by the Issuer is required in
connection with the execution and delivery by the Seller of this Agreement, the consummation by the
Seller of the transactions contemplated hereby or the performance by the Seller of his obligations
hereunder, other than such which have been obtained by the Seller or will be obtained by the Seller
on or prior to the Closing Date.

          3.4 Ownership and Transfer. The Seller is the record and beneficial owner of the
Shares, free and clear of any and all liens, charges, security interests, options, claims,
equitable interests, pledges, proxies, voting trusts or agreements, encumbrances, restrictions or
adverse interests of any kind and of any nature whatsoever (collectively, “Liens”), except
for such restrictions on transfer imposed by applicable federal or state securities laws or the
certificate of incorporation of the Issuer. Upon transfer, assignment and delivery of the Shares
and payment therefor in accordance with the terms of this Agreement, the Purchaser will acquire
good and marketable title to such shares, free and clear of any and all Liens, except for such
restrictions on transfer imposed by applicable federal or state securities laws or the certificate
of incorporation of the Issuer.

4. CONDITIONS PRECEDENT

          4.1 The obligations of the Purchaser and the Seller under Section 1 hereof are subject to the
following conditions:

          (a) All of the representations and warranties of the Purchaser and the Seller contained in
this Agreement shall be true and correct on and as of the date hereof and on the Closing Date.

          (b) On the Closing Date the Purchaser shall have received the favorable opinion of counsel for
the Seller, dated as of such Closing Date, with respect to such matters as may be reasonably
requested by the Purchaser.

          (c) On the Closing Date the Purchaser shall have received such documents or agreements, in
such form reasonably satisfactory to Purchaser, evidencing the Issuer’s obligation to register
under the Securities Act the resale by the Purchaser of the Shares.

          (d) The Seller shall have received the Purchase Price and the Purchaser shall have received
certificates for the Shares, duly registered in the name of the Purchaser.

 

 

5. MISCELLANEOUS

          5.1 Further Assurances. The Seller and the Purchaser agree to execute and deliver
such other documents or agreements and to take such other action as may be necessary or desirable
for the implementation of this Agreement and the consummation of the transactions contemplated
hereby.

          5.2 Complete Agreement; Amendments; Waivers. This Agreement constitutes the complete
agreement between the parties with respect to the subject matter hereof, supercedes any previous
agreement or understanding between them relating hereto and may not be modified, altered or amended
except as provided herein. This Agreement can be amended, supplemented or changed, and any
provision hereof can be waived, only by written instrument making specific reference to this
Agreement signed by the party against whom enforcement of any such amendment, supplement,
modification or waiver is sought. No action taken pursuant to this Agreement shall be deemed to
constitute a waiver by the party taking such action or compliance with any representation,
warranty, covenant or agreement contained herein. The waiver by any party hereto of a breach of
any provision of this Agreement shall not operate or be construed as a further or continuing waiver
of such breach or as a waiver of any other or subsequent breach. No failure on the part of any
party to exercise, and no delay in exercising, any right, power or remedy hereunder shall operate
as a waiver thereof, nor shall any single or partial exercise of such right, power or remedy by
such party preclude any other or further exercise thereof or the exercise of any other right, power
or remedy. All remedies hereunder are cumulative and are not exclusive of any other remedies
provided by law.

          5.3 Expenses. Each party hereto shall bear its own expenses incurred in connection
with the negotiation and execution of this Agreement and each other document and instrument
contemplated by this Agreement and the consummation of the transactions contemplated hereby and
thereby.

          5.4 Waiver Of Jury Trial. The parties hereto waive all right to trial by jury in any
action or proceeding to enforce or defend any rights under the transaction documents.

          5.5 Severability. If any term or other provision of this Agreement is invalid,
illegal or incapable of being enforced by any rule of law or public policy, all other conditions
and provisions of this Agreement shall nevertheless remain in full force and effect so long as the
economic and legal substance of the transactions contemplated hereby is not affected in any manner
materially adverse to any party. Upon such determination that any term or other provision is
invalid, illegal or incapable of being enforced, the parties shall negotiate in good faith to
modify this Agreement so as to effect the original intent of the parties as closely as possible in
a mutually acceptable manner in order that the transactions be consummated as originally
contemplated to the fullest extent possible.

 

 

          5.6 Binding Effect; Assignment. This Agreement shall be binding upon and inure to the
benefit of the parties and their respective heirs, successors and permitted assigns. Nothing in
this Agreement shall create or be deemed to create any third party beneficiary rights in any person
or entity not a party to this Agreement. No assignment of this Agreement or of any rights or
obligations hereunder may be made by the Seller or the Purchaser (by operation of law or otherwise)
without the prior written consent of the other party hereto and any attempted assignment without
the required consent shall be void. Notwithstanding the foregoing, Seller shall have the right to
assign all or a portion of this Agreement to one or more trusts for the benefit of his children and
to charitable trusts or foundations established or designated by Seller.

          5.7 Governing Law. This Agreement shall be governed by, and construed and enforced in
accordance with, the laws of the State of New York regardless of the laws that might otherwise
govern under applicable principles of conflicts of laws thereof.

          5.8 Submission to Jurisdiction; Consent to Service of Process. The Purchaser and the
Seller each agrees to submit to personal jurisdiction and to waive any objection as to venue in the
federal or New York State courts located in the County of New York, State of New York. Service of
process on the Purchaser or the Seller in any action arising out of or relating to any of this
Agreement shall be effective if mailed to such party in accordance with the provisions of Section
5.9 hereof. Nothing herein shall preclude the Purchaser or the Seller from bringing suit or taking
other legal action in any other jurisdiction.

          5.9 Notices. All notices and other communications under this Agreement shall be in
writing and shall be deemed given when delivered personally or mailed by certified mail, return
receipt required, to the parties at the following addresses (or to such other address as a party
may have specified by notice given to the other party pursuant to this provision):

If to the Seller, to:

Ian M. Cumming

c/o Leucadia National Corporation

315 Park Avenue South

New York, New York 10010

If to the Purchaser, to:

Jefferies Group, Inc

520 Madison Avenue

New York, New York 10022

Attention: General Counsel

          5.10 Survival. All of the representations, warranties, covenants and agreements of
the parties in this Agreement shall survive the Closing.

 

 

          5.11 Section and Other Headings. The section and other headings contained in this
Agreement are for reference purposes only and shall not affect the meaning or interpretation of
this Agreement.

          5.12 Counterparts. This Agreement may be executed and delivered (including by
facsimile transmission) in one or more counterparts, all of which when executed and delivered shall
be considered one and the same agreement.

[signature page follows]

 

 

          IN WITNESS WHEREOF, each Seller and the Purchaser have executed this Agreement as of the day
and year first above written.

	 	 	 	 	 	 	 
	 	 	PURCHASER:	 	 
	 
	 	 	 	 	 	 
	 	 	JEFFERIES GROUP, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Roland T. Kelly
 

Roland T. Kelly
	 	 
	 

	 	Title:
	 	Assistant Secretary	 	 
	 
	 	 	 	 	 	 
	 	 	SELLER:	 	 
	 
	 	 	 	 	 	 
	 	 	IAN M. CUMMING	 	 
	 
	 	 	 	 	 	 
	 	 	            /s/ Andrea A. Bernstein	 	 
	 	 	 	 	 
	 	 	By: Andrea A. Bernstein, Attorney-in-fact under

Power of Attorney dated June 2, 2008	 	 

8

 

EXHIBIT 1

DESCRIPTION OF REGISTRATION RIGHTS

A. Definitions.

          As used herein, the following definitions shall be applicable:

          “Commission” shall mean the Securities and Exchange Commission or any other federal agency at
the time administering the federal securities laws.

          “NASD” shall mean the National Association of Securities Dealers, Inc.

          “Prospectus” shall mean any preliminary prospectus and final prospectus (as such may be
amended or supplemented) which constitutes Part I of a Registration Statement filed with the
Commission.

          “Registration Statement” shall mean the form and documents required to be filed by an issuer
in connection with the registration of securities of such issuer under the Securities Act.

          “Securities Act” shall mean the Securities Act of 1933, as amended from time to time.

          “Seller” shall mean each holder of Exchange Shares for whom securities are included or
proposed to be included in a Registration Statement filed or proposed to be filed by Leucadia.

          “Transfer” shall mean any sale, pledge, assignment, encumbrance or disposition of any Exchange
Shares or of any part thereof or interest therein, including an offer to transfer, whether or not
such transfer would constitute a “sale” as that term is defined in section 2(3) of the Securities
Act.

B. Legends.

     (1) Unless and until removed as provided in the next paragraph, each certificate evidencing
Exchange Shares shall bear a legend in substantially the following form:

     “The transfer of this certificate and the shares evidenced hereby is subject
to certain restrictions contained in Exhibit 1 of the Agreement and Plan of
Reorganization dated February 23. 1989, and the holder of this certificate by
acceptance hereof agrees to be bound by such restrictions. A copy of such Agreement
and Plan of Reorganization is on file with the Secretary of Leucadia.”

          Leucadia may issue such “stop transfer” instructions to its transfer agent with respect to all
or any of the Exchange Shares as it deems appropriate to prevent any violation of the provisions
hereof or of the Securities Act.

9

 

     (2) Leucadia shall issue a new certificate which does not contain the legend set forth above
if (i) the shares represented thereby are sold pursuant to a Registration Statement (including a
current Prospectus) which has become and is effective under the Securities Act or (ii) the staff of
the Commission shall have issued a “no action” letter to the effect that, or counsel acceptable to
Leucadia shall have rendered its opinion (which opinion shall be acceptable to Leucadia) that, such
securities may be sold without registration under the Securities Act.

C. Notice of Transfer, Opinion of Counsel.

          If a holder of Exchange Shares proposes to transfer all or a portion of such securities, such
holder shall give Leucadia written notice specifying the securities involved and describing the
manner in which the proposed transfer is to be made, together with either (i) an opinion of counsel
satisfactory to Leucadia stating in substance that registration under the Securities Act is not
required with respect to such transfer or (ii) a “no action” letter from the staff of the
Commission with respect to such transfer. Following delivery of a notice accompanied by an opinion
of counsel to the effect set forth above or by such a “no action” letter, such holder shall have
the right to transfer, in a manner consistent with its notice to Leucadia, the Exchange Shares
proposed to be transferred, unless Leucadia determines within 20 days following such delivery that
registration under the Securities Act is required with respect to such proposed transfer. Such
holder shall cooperate with Leucadia for the purpose of permitting such determination to be made,
including, to the extent deemed necessary by Leucadia, procuring and delivering to Leucadia an
investment letter signed by the proposed transferee.

D. Demand Registration.

     (1) Upon a written demand by a holder or holders of at least 250,000 Exchange Shares (or such
other equivalent number of shares as may result from a reclassification, subdivision or combination
of Leucadia Shares into a greater or smaller number of shares) that not less than 250,000 of such
Exchange Shares be registered (which demand shall specify its intended method of disposition),
Leucadia shall promptly give written notice of such demand to all other holders of Exchange Shares
and shall use its best efforts to effect the registration under the Securities Act of:

     (a) the Exchange Shares which Leucadia has been demanded to register pursuant to this
paragraph D for a disposition in accordance with the proposed method of disposition
described in said demand; and

     (b) all other Exchange Shares the holders of which shall have made written request
(stating the proposed method of disposition of such securities by prospective Seller) to
Leucadia for the registration thereof within 20 days after giving of such written notice by
Leucadia, all to the extent requisite to permit the disposition (in accordance with the
proposed methods thereof, as aforesaid, as long as such proposed methods are consistent
with the original demand) by the prospective Seller or Sellers of such securities.

     (2) Leucadia’s obligation to effect a registration hereunder is subject to the conditions
that:

10

 

     (a) TLC and its transferees shall not be entitled to more than a total of five
separate registration statements on Form S-2, S-3 or other comparable short form of
registration statement; provided, however, that no such S-3 or comparable short form need
by filed until the earlier of the 90th day after the end of any fiscal year of Leucadia or
the date on which Leucadia’s audited financial statements for such fiscal year are
available, nor shall more than one such form be required to be filed in any 12-month
period.

     (b) Leucadia shall not be required to have a special audit of its financial statements
for inclusion in such Registration Statement; but if the rules and regulations of the
Commission otherwise require such a special audit, Leucadia may delay the filing or
effectiveness of the Registration Statement until such time as Leucadia receives its
audited financial statements for its then current fiscal year.

     (c) Leucadia shall not be required to effect any registration in accordance with
paragraph D(1) hereof if (i) in the written opinion of counsel to Leucadia such
registration may not be appropriately effected in light of any material pending transaction
of Leucadia or its subsidiaries, or (ii) any registration of any underwritten public
offering of securities made on behalf of Leucadia has become effective within ninety (90)
days prior to the anticipated effective date of any registration requested pursuant to
paragraph D(1) hereof.

E. General.

          If and whenever Leucadia is required by the provisions herein to use its best efforts to
effect the registration of any of its securities under the Securities Act, Leucadia shall, as
expeditiously as possible:

     (1) prepare and file with the Commission a Registration Statement with respect to such
securities and use its best efforts to cause such Registration Statement to become and
remain effective;

     (2) prepare and file with the Commission such amendments and supplements to such
Registration Statement and the Prospectus used in connection therewith as may be necessary
to keep such Registration Statement effective for the shorter of 30 days or the completion
of the distribution and to comply with the provisions of the Securities Act with respect to
the disposition of all securities covered by such Registration Statement in accordance with
the intended method of disposition by the Seller or Sellers thereof set forth in such
Registration Statement for such period;

     (3) furnish to each Seller such number of copies of the Prospectus contained in such
Registration Statement (including each preliminary prospectus), in conformity with the
requirements of the Securities Act, and such other documents as such Seller may reasonably
request in order to facilitate the disposition of the securities owned by such Seller;

     (4) use its best efforts to register or qualify Exchange Shares covered by such
Registration Statement under the securities or blue sky laws of such jurisdictions as the
Seller shall reasonably request, and do any and all other acts and things which may be
necessary or advisable to enable the Sellers to consummate the disposition in such
jurisdictions of such Exchange Shares during the period provided in paragraph E(2); and

11

 

     (5) (a) notify each Seller of any Exchange Shares covered by such Registration
Statement, at any time when a Prospectus relating thereto is required to be delivered under
the Securities Act, of the happening of any event as a result of which the Prospectus
contained in such Registration Statement, as then in effect, includes any untrue statement
of a material fact or omits to state any material fact required to be stated therein or
necessary to make the statements therein not misleading in the light of the circumstances
then existing, and (b) at the request of any such Seller prepare and furnish to such Seller
a reasonable number of copies of any supplement to or amendment of such Prospectus that may
be necessary so that, as thereafter delivered to the purchasers of such shares, such
Prospectus shall not include any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the statements therein not
misleading in the light of the circumstances then existing.

F. Expenses.

          If and whenever Leucadia is required by the provisions herein to effect the registration of
any Exchange Shares under the Securities Act, Leucadia shall pay all expenses arising out of or
related to the preparation, filing, amendment and supplementing of a Registration Statement,
including, without limitation, all legal and accounting fees, Commission filing fees, NASD filing
fees, printing costs, registration or qualification fees and expenses to comply with “blue sky” or
other state securities laws, the fees of other experts and any reasonable expenses or other
compensation paid to the underwriters (other than those required by the next succeeding sentence to
be paid by the Sellers). Each Seller shall be required to bear underwriting commissions and
discounts and transfer taxes, if any, payable in connection with the sale of Exchange Shares.

G. Indemnification.

          In the event of the registration of any Exchange Shares under the Securities act pursuant to
the provisions herein, Leucadia agrees to indemnify and hold harmless the Seller of such Exchange
Shares, each underwriter, if any, of such Exchange Shares, and each person who controls such Seller
or any such underwriter within the meaning of section 15 of the Securities Act, from and against
any and all losses, claims, damages or liabilities, joint or several, to which such Seller,
underwriter or controlling person may become subject under the Securities Act or the common law or
otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof)
arise out of or are based upon any untrue statement or alleged untrue statement of any material
fact contained in any Registration Statement under which such Exchange Shares were registered under
the Securities Act, or any Prospectus or preliminary prospectus contained therein, or any amendment
or supplement thereto, or arise out of or are based upon the omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the statements therein
not misleading; and will reimburse such Seller, each such underwriter, and each such controlling
person for any legal or any other expenses reasonably incurred by such Seller, underwriter or
controlling person in connection with investigating or defending any such loss, claim, damage,
liability or action; provided, however, that Leucadia will not be liable in any such case to the
extent that any such loss, claim, damage or liability arises out of or is based upon an untrue
statement or alleged untrue statement or omission or alleged omission made in such

12

 

Registration Statement, such Prospectus or preliminary prospectus or such amendment or
supplement in reliance upon and in conformity with written information furnished to Leucadia by
such Seller, underwriter or controlling person specifically for use in preparation thereof; and
provided further, however, that this indemnity agreement with respect to any preliminary prospectus
shall not inure to the benefit of any such underwriter (or any person who so controls such
underwriter) for any such loss, claim, damage, liability or action asserted by a person who
purchased any Exchange Shares from such underwriter if a copy of the final Prospectus was not
delivered or given to such person by such underwriter at or prior to the written confirmation of
the sale to such person.

          In the event of the registration of any Exchange Shares under the Securities Act pursuant to
the provisions hereof, each Seller of Exchange Shares agrees to indemnify and hold harmless and to
use its best efforts to cause each underwriter, if any, of such Exchange Shares and each person who
controls such Seller or any such underwriter within the meaning of section 15 of the Securities
Act, to indemnify and hold harmless Leucadia, each person who controls Leucadia within the meaning
of section 15 of the Securities Act, each of its officers who signs the Registration Statement, and
each director of Leucadia from and against any and all losses, claims, damages or liabilities,
joint or several, to which Leucadia, such controlling person or any such officer or director may
become subject under the Securities Act or the common law or otherwise, insofar as such losses,
claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any
untrue statement or alleged untrue statement of any material fact contained in any Registration
Statement under which such Exchange Shares were registered under the Securities Act, any Prospectus
or preliminary prospectus contained therein, or amendment or supplemental thereto, or arise out of
or are based upon the omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading, which untrue statement
or alleged untrue statement or omission or alleged omission was made therein in reliance upon, and
in conformity with, written information furnished to Leucadia by such Seller, controlling person or
underwriter, specifically for use in connection with the preparation thereof; and will reimburse
Leucadia, such controlling person and each such officer and director for any legal or other expense
reasonably incurred by them in connection with investigating or defending any such loss, claim,
damage, liability or action.

          Promptly after receipt by an indemnified party of notice of the commencement of any action
such indemnified party will, if a claim in respect thereof is to be made against an indemnifying
party, give written notice to such indemnifying party of the commencement thereof, but the omission
so to notify the indemnifying party will not relieve it from any liability which it may have to any
indemnified party otherwise than pursuant to the provisions of this paragraph G. In any case such
action is brought against any indemnified party, and it notifies any indemnifying party of the
commencement thereof, the indemnifying party will be entitled to participate in, and to the extent
that it may wish, jointly with any other indemnified party similarly notified, to assume the
defense thereof, with counsel satisfactory to such indemnified party, and after notice from the
indemnifying party of its election so to assume the defense thereof, the indemnifying party will
not be liable to such indemnified party for any legal or other

13

 

expenses subsequently incurred by such indemnified party in connection with the defense
thereof, other than the reasonable cost of investigation.

H. Transferees.

          In the event that any of the Exchange Shares shall at any time be transferred by the holder
hereof or thereof other than pursuant to an effective Registration Statement, the rights herein
conferred shall extend to the transferee of such securities.

14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00146-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00146-of-00352.parquet"}]]