Document:

exv10w1

Exhibit 10.1

GREG MANNING AUCTIONS, INC.

1997 STOCK INCENTIVE PLAN

 

 

Table of Contents

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I

	GENERAL

	1.1 Purpose
	 	 	1	 
	1.2 Administration
	 	 	1	 
	1.3 Persons Eligible for Awards
	 	 	2	 
	1.4 Types of Awards Under Plan
	 	 	2	 
	1.5 Shares Available for Awards
	 	 	2	 
	1.6 Definitions of Certain Terms
	 	 	3	 
	 
	 	 	 	 
	ARTICLE II

	AWARDS UNDER THE PLAN

	 
	 	 	 	 
	2.1 Agreements Evidencing Awards
	 	 	5	 
	2.2 No Rights as a Shareholder
	 	 	5	 
	2.3 Grant of Stock Options, Stock Appreciation
Rights and Reload Options
	 	 	6	 
	2.4 Exercise of Options and Stock Appreciation Rights
	 	 	8	 
	2.5 Termination of Employment; Death
	 	 	9	 
	2.6 Grant of Restricted Stock
	 	 	9	 
	2.7 Grant of Restricted Stock Units
	 	 	10	 
	2.8 Other Stock-Based Awards
	 	 	11	 
	2.9 Grant of Dividend Equivalent Rights
	 	 	11	 
	2.10 Right of Recapture
	 	 	11	 
	 
	 	 	 	 
	ARTICLE III

	 
	 	 	 	 
	MISCELLANEOUS

	 
	 	 	 	 
	3.1 Amendment of the Plan; Modification
of Awards
	 	 	12	 
	3.2 Tax Withholding
	 	 	12	 
	3.3 Restrictions
	 	 	13	 
	3.4 Nonassignability
	 	 	13	 
	3.5 Requirement of Notification of Election
Under Section 83(b) of the Code
	 	 	13	 
	3.6 Requirement of Notification Upon Disqualifying
Disposition Under Section 421(b) of the Code
	 	 	14	 
	3.7 Change in Control
	 	 	14	 
	3.8 Right of Discharge Reserved
	 	 	15	 
	3.9 Nature of Payments
	 	 	15	 
	3.10 Non-Uniform Determinations
	 	 	15	 
	3.11 Other Payments or Awards
	 	 	15	 
	3.12 Section Headings
	 	 	15	 
	3.13 Effective Date; Term of Plan; 1993 Plan
	 	 	16	 
	3.14 Governing Law
	 	 	16	 

 

 

ARTICLE I

GENERAL

1.1 PURPOSE

          The purpose of the Greg Manning Auctions, Inc. 1997 Stock
Incentive Plan (the “Plan”) is to provide for officers, other employees and
directors of, and consultants to, Greg Manning Auctions, Inc. (the “Company”)
and its subsidiaries an incentive (a) to enter into and remain in the service of
the Company, (b) to enhance the long-term performance of the Company, and (c) to
acquire a proprietary interest in the success of the Company.

1.2 ADMINISTRATION

          1.2.1 Subject to Section 1.2.6, the Plan shall be administered
by the Stock Option Committee (the “Committee”) of the board of directors of the
Company (the “Board”), which shall consist of not less than two directors. The
members of the Committee shall be appointed by, and serve at the pleasure of,
the Board. To the extent required for transactions under the Plan to qualify for
the exemptions available under Rule 16b-3 (“Rule 16b-3”) promulgated under the
Securities Exchange Act of 1934 (the “1934 Act”), all actions relating to awards
to persons subject to Section 16 of the 1934 Act shall be taken by the Board
unless each person who serves on the Committee is a “non-employee director”
within the meaning of Rule 16b-3 or such actions are taken by a sub-committee of
the Committee (or the Board) comprised solely of “non-employee directors”. To
the extent required for compensation realized from awards under the Plan to be
deductible by the Company pursuant to section 162(m) of the Internal Revenue
Code of 1986 (the “Code”), the members of the Committee shall be “outside
directors” within the meaning of section 162(m).

          1.2.2 The Committee shall have the authority (a) to exercise
all of the powers granted to it under the Plan, (b) to construe, interpret and
implement the Plan and any Plan Agreements executed pursuant to Section 2.1, (c)
to prescribe, amend and rescind rules and regulations relating to the Plan,
including rules governing its own operations, (d) to make all determinations
necessary or advisable in administering the Plan, (e) to correct any defect,
supply any omission and reconcile any inconsistency in the Plan, (f) to amend
the Plan to reflect changes in applicable law, (g) to determine whether, to what
extent and under what circumstances awards may be settled or exercised in cash,
Shares of Common Stock, other securities, other awards or other property, or
canceled, forfeited or suspended and the method or methods by which awards may
be settled, canceled, forfeited or suspended, and (h) to determine whether, to
what extent and under what circumstances cash, shares of Common Stock, other
securities, other awards or other property and other amounts payable with
respect to an award shall be deferred either automatically or at the election of
the holder thereof or of the Committee.

 

 

          1.2.3 Actions of the Committee shall be taken by the vote of a
majority of its members. Any action may be taken by a written instrument signed
by a majority of the Committee members, and action so taken shall be fully as
effective as if it had been taken by a vote at a meeting.

          1.2.4 The determination of the Committee on all matters
relating to the Plan or any Plan Agreement shall be final, binding and
conclusive.

          1.2.5 No member of the Committee shall be liable for any
action or determination made in good faith with respect to the Plan or any award
thereunder.

          1.2.6 Notwithstanding anything to the contrary contained
herein: (a) until the Board shall appoint the members of the Committee, the Plan
shall be administered by the Board; and (b) the Board may, in its sole
discretion, at any time and from time to time, grant awards or resolve to
administer the Plan. In either of the foregoing events, the Board shall have all
of the authority and responsibility granted to the Committee herein.

1.3 PERSONS ELIGIBLE FOR AWARDS

          Awards under the Plan may be made to such directors, officers
and other employees of the Company and its subsidiaries (including prospective
employees conditioned on their becoming employees), and to such consultants to
the Company and its subsidiaries (collectively, “key persons”) as the Committee
shall in its discretion select.

1.4 TYPES OF AWARDS UNDER PLAN

          Awards may be made under the Plan in the form of (a) incentive
stock options (within the meaning of section 422 of the Code), (b) nonqualified
stock options, (c) stock appreciation rights, (d) dividend equivalent rights,
(e) restricted stock, (f) restricted stock units and (g) other stock-based
awards, all as more fully set forth in Article II. The term “award” means any of
the foregoing. No incentive stock option (other than an incentive stock option
that may be assumed or issued by the Company in connection with a transaction to
which section 424(a) of the Code applies) may be granted to a person who is not
an employee of the Company on the date of grant.

1.5 SHARES AVAILABLE FOR AWARDS

 

 

          1.5.1 The total number of shares of common stock of the
Company, par value $.01 per share (“Common Stock”), which may be issued in
connection with awards granted under the Plan shall, together with any shares
issued in connection with awards granted under the Greg Manning Auctions, Inc.
1993 Stock Option Plan, as amended (the “1993 Plan”), not exceed 850,000. Such
shares may be authorized but unissued Common Stock or authorized and issued
Common Stock held in the Company’s treasury or acquired by the Company for the
purposes of the Plan. The Committee may direct that any stock certificate
evidencing shares issued pursuant to the Plan shall bear a legend setting forth
such restrictions on transferability as may apply to such shares pursuant to the
Plan. If, after the effective date of the Plan, any award is forfeited or any
award otherwise terminates or is cancelled without the delivery of shares of
Common Stock, then the shares covered by such award or to which such award
relates shall again become available for transfer pursuant to awards granted or
to be granted under this Plan. Any shares of Common Stock delivered by the
Company, any shares of Common Stock with respect to which awards are made by the
Company and any shares of Common Stock with respect to which the Company becomes
obligated to make awards, through the assumption of, or in substitution for,
outstanding awards previously granted by an acquired entity, shall not be
counted against the shares available for awards under this Plan.

          1.5.2 The total number of shares of Common Stock with respect
to which stock options and stock appreciation rights may be granted to any one
employee of the Company or a subsidiary during any one-year period shall not
exceed 100,000.

          1.5.3 Subject to any required action by the shareholders of
the Company, the number of shares of Common Stock covered by each outstanding
award, the number of shares available for awards, the number of shares that may
be subject to awards to any one employee, and the price per share of Common
Stock covered by each such outstanding award shall be proportionately adjusted
for any increase or decrease in the number of issued shares of Common Stock
resulting from a stock split, reverse stock split, stock dividend, combination
or reclassification of the Common Stock, or any other increase or decrease in
the number of issued shares of Common Stock effected without receipt of
consideration by the Company; provided, however, that conversion of any
convertible securities of the Company shall not be deemed to have been “effected
without receipt of consideration.” Such adjustment shall be made by the
Committee, whose determination in that respect shall be final, binding and
conclusive. Except as expressly provided herein, no issuance by the Company of
shares of stock of any class, or securities convertible into shares of stock of
any class, shall affect, and no adjustment by reason thereof shall be made with
respect to, the number or price of shares of Common Stock subject to an award.
After any adjustment made pursuant to this Section 1.5.3, the number of shares
subject to each outstanding award shall be rounded to the nearest whole number.

          1.5.4 Except as provided in this Section 1.5 and in Section
2.3.8, there shall be no limit on the number or the value of the shares of
Common Stock that may be subject to awards to any individual under the Plan.

1.6 Definitions of Certain Terms

          1.6.1 The “Fair Market Value” of a share of Common Stock on
any day shall be determined as follows.

 

 

     (a) If the principal market for the Common Stock (the “Market”) is a
national securities exchange or the National Association of Securities Dealers
Automated Quotation System (“NASDAQ”) National Market, the last sale price or,
if no reported sales take place on the applicable date, the average of the high
bid and low asked price of Common Stock as reported for such Market on such date
or, if no such quotation is made on such date, on the next preceding day on
which there were quotations, provided that such quotations shall have been made
within the ten (10) business days preceding the applicable date;

     (b) If the Market is the NASDAQ National List, the NASDAQ Supplemental List
or another market, the average of the high bid and low asked price for Common
Stock on the applicable date, or, if no such quotations shall have been made on
such date, on the next preceding day on which there were quotations, provided
that such quotations shall have been made within the ten (10) business days
preceding the applicable date; or,

     (c) In the event that neither paragraph (a) nor (b) shall apply, the Fair
Market Value of a share of Common Stock on any day shall be determined in good
faith by the Committee.

          1.6.2 The term “incentive stock option” means an option that
is intended to qualify for special federal income tax treatment pursuant to
sections 421 and 422 of the Code, as now constituted or subsequently amended, or
pursuant to a successor provision of the Code, and which is so designated in the
applicable Plan Agreement. Any option that is not specifically designated as an
incentive stock option shall under no circumstances be considered an incentive
stock option. Any option that is not an incentive stock option is referred to
herein as a “nonqualified stock option.”

          1.6.3 The term “employment” means, in the case of a grantee of
an award under the Plan who is not an employee of the Company, the grantee’s
association with the Company or a subsidiary as a director, consultant or
otherwise.

          1.6.4 A grantee shall be deemed to have a “termination of
employment” upon ceasing to be employed by the Company and all of its
subsidiaries or by a corporation assuming awards in a transaction to which
section 424(a) of the Code applies. The Committee may in its discretion
determine (a) whether any leave of absence constitutes a termination of
employment for purposes of the Plan, (b) the impact, if any, of any such leave
of absence on awards theretofore made under the Plan, and (c) when a change in a
non-employee’s association with the Company constitutes a termination of
employment for purposes of the Plan. The Committee shall have the right to
determine whether the termination of a grantee’s employment is a dismissal for
cause and the date of termination in such case, which date the Committee may
retroactively deem to be the date of the action that is cause for dismissal.
Such determinations of the Committee shall be final, binding and conclusive.

 

 

          1.6.5 The term “cause,” when used in connection with
termination of a grantee’s employment, shall have the meaning set forth in any
then-effective employment agreement between the grantee and the Company or a
subsidiary thereof. In the absence of such an employment agreement provision,
“cause” means: (a) conviction of any crime (whether or not involving the
Company) constituting a felony in the jurisdiction involved; (b) engaging in any
substantiated act involving moral turpitude; (c) engaging in any act which, in
each case, subjects, or if generally known would subject, the Company to public
ridicule or embarrassment; (d) material violation of the Company’s policies,
including, without limitation, those relating to sexual harassment or the
disclosure or misuse of confidential information; (e) serious neglect or
misconduct in the performance of the grantee’s duties for the Company or a
subsidiary or willful or repeated failure or refusal to perform such duties; in
each case as determined by the Committee, which determination shall be final,
binding and conclusive.

ARTICLE II

AWARDS UNDER THE PLAN

2.1 AGREEMENTS EVIDENCING AWARDS

          Each award granted under the Plan (except an award of
unrestricted stock) shall be evidenced by a written agreement (“Plan Agreement”)
which shall contain such provisions as the Committee in its discretion deems
necessary or desirable. Such provisions may include, without limitation, a
requirement that the grantee become a party to a shareholders’ agreement with
respect to any shares of Common Stock acquired pursuant to the award, a
requirement that the grantee acknowledge that such shares are acquired for
investment purposes only, and a right of first refusal exercisable by the
Company in the event that the grantee wishes to transfer any such shares. The
Committee may grant awards in tandem with or in substitution for any other award
or awards granted under this Plan or any award granted under any other plan of
the Company or any subsidiary. Payments or transfers to be made by the Company
or any subsidiary upon the grant, exercise or payment of an award may be made in
such form as the Committee shall determine, including cash, shares of Common
Stock, other securities, other awards or other property and may be made in a
single payment or transfer, in installments or on a deferred basis, in each case
in accordance with rules established by the Committee. By accepting an award
pursuant to the Plan, a grantee thereby agrees that the award shall be subject
to all of the terms and provisions of the Plan and the applicable Plan
Agreement.

2.2 NO RIGHTS AS A SHAREHOLDER

          No grantee of an option or stock appreciation right (or other
person having the right to exercise such award) shall have any of the rights of
a shareholder of the Company with respect to shares subject to such award until
the issuance of a stock certificate to such person for such shares. Except as
otherwise provided in Section 1.5.3, no adjustment shall be made for dividends,
distributions or other rights (whether ordinary or extraordinary, and whether in
cash, securities or other property) for which the record date is prior to the
date such stock certificate is issued.

 

 

			
	2.3	 	GRANT OF STOCK OPTIONS, STOCK APPRECIATION RIGHTS AND RELOAD OPTIONS

          2.3.1 The Committee may grant incentive stock options and
nonqualified stock options (collectively, “options”) to purchase shares of
Common Stock from the Company, to such key persons, in such amounts and subject
to such terms and conditions, as the Committee shall determine in its
discretion, subject to the provisions of the Plan.

          2.3.2 The Committee may grant stock appreciation rights to
such key persons, in such amounts and subject to such terms and conditions, as
the Committee shall determine in its discretion, subject to the provisions of
the Plan. Stock appreciation rights may be granted in connection with all or any
part of, or independently of, any option granted under the Plan. A stock
appreciation right granted in connection with a nonqualified stock option may be
granted at or after the time of grant of such option. A stock appreciation right
granted in connection with an incentive stock option may be granted only at the
time of grant of such option.

          2.3.3 The grantee of a stock appreciation right shall have the
right, subject to the terms of the Plan and the applicable Plan Agreement, to
receive from the Company an amount equal to (a) the excess of the Fair Market
Value of a share of Common Stock on the date of exercise of the stock
appreciation right over (b) the exercise price of such right as set forth in the
Plan Agreement (or over the option exercise price if the stock appreciation
right is granted in connection with an option), multiplied by (c) the number of
shares with respect to which the stock appreciation right is exercised. Payment
upon exercise of a stock appreciation right shall be in cash or in shares of
Common Stock (valued at their Fair Market Value on the date of exercise of the
stock appreciation right) or both, all as the Committee shall determine in its
discretion. Upon the exercise of a stock appreciation right granted in
connection with an option, the number of shares subject to the option shall be
correspondingly reduced by the number of shares with respect to which the stock
appreciation right is exercised. Upon the exercise of an option in connection
with which a stock appreciation right has been granted, the number of shares
subject to the stock appreciation right shall be correspondingly reduced by the
number of shares with respect to which the option is exercised.

 

 

          2.3.4 Each Plan Agreement with respect to an option shall set
forth the amount (the “option exercise price”) payable by the grantee to the
Company upon exercise of the option evidenced thereby. The option exercise price
per share shall be determined by the Committee in its discretion; provided,
however, that the option exercise price of an incentive stock option shall be at
least 100% of the Fair Market Value of a share of Common Stock on the date the
option is granted (except as permitted in connection with the assumption or
issuance of options in a transaction to which section 424(a) of the Code
applies), and provided further that in no event shall the option exercise price
be less than the par value of a share of Common Stock. The Committee shall have
the authority, at any time or from time to time, to cancel any outstanding
option and reissue a new option at a lower exercise price in the event that the
Fair Market Value of a share of Common Stock at any time prior to the date of
exercise falls below the option exercise price.

          2.3.5 Each Plan Agreement with respect to an option or stock
appreciation right shall set forth the periods during which the award evidenced
thereby shall be exercisable, whether in whole or in part. Such periods shall be
determined by the Committee in its discretion; provided, however, that no
incentive stock option (or a stock appreciation right granted in connection with
an incentive stock option) shall be exercisable more than 10 years after the
date of grant.

          2.3.6 The Committee may in its discretion include in any Plan
Agreement with respect to an option (the “original option”) a provision that an
additional option (the “additional option”) shall be granted to any grantee who,
pursuant to Section 2.4.3(b), delivers shares of Common Stock in partial or full
payment of the exercise price of the original option. The additional option
shall be for a number of shares of Common Stock equal to the number thus
delivered, shall have an exercise price equal to the Fair Market Value of a
share of Common Stock on the date of exercise of the original option, and shall
have an expiration date no later than the expiration date of the original
option. In the event that a Plan Agreement provides for the grant of an
additional option, such Agreement shall also provide that the exercise price of
the original option be no less than the Fair Market Value of a share of Common
Stock on its date of grant, and that any shares that are delivered pursuant to
Section 2.4.3(b) in payment of such exercise price shall have been held for at
least six months.

          2.3.7 To the extent that the aggregate Fair Market Value
(determined as of the time the option is granted) of the stock with respect to
which incentive stock options granted under this Plan and all other plans of the
Company and any subsidiary are first exercisable by any employee during any
calendar year shall exceed the maximum limit (currently, $100,000), if any,
imposed from time to time under section 422 of the Code, such options shall be
treated as nonqualified stock options.

          2.3.8 Notwithstanding the provisions of Sections 2.3.4 and
2.3.5, to the extent required under section 422 of the Code, an incentive stock
option may not be granted under the Plan to an individual who, at the time the
option is granted, owns stock possessing more than 10% of the total combined
voting power of all classes of stock of his employer corporation or of its
parent or subsidiary corporations (as such ownership may be determined for
purposes of section 422(b)(6) of the Code) unless (a) at the time such incentive
stock option is granted the option exercise price is at least 110% of the Fair
Market Value of the shares subject thereto and (b) the incentive stock option by
its terms is not exercisable after the expiration of 5 years from the date it is
granted.

 

 

2.4 EXERCISE OF OPTIONS AND STOCK APPRECIATION RIGHTS

          Subject to the provisions of this Article II, each option or
stock appreciation right granted under the Plan shall be exercisable as follows:

          2.4.1 Unless the applicable Plan Agreement otherwise provides,
an option or stock appreciation right shall become exercisable in four
substantially equal installments, on each of the first, second, third and fourth
anniversaries of the date of grant, and each installment, once it becomes
exercisable, shall remain exercisable until expiration, cancellation or
termination of the award.

          2.4.2 Unless the applicable Plan Agreement otherwise provides,
an option or stock appreciation right may be exercised from time to time as to
all or part of the shares as to which such award is then exercisable (but, in
any event, only for whole shares). A stock appreciation right granted in
connection with an option may be exercised at any time when, and to the same
extent that, the related option may be exercised. An option or stock
appreciation right shall be exercised by the filing of a written notice with the
Company, on such form and in such manner as the Committee shall prescribe.

          2.4.3 Any written notice of exercise of an option shall be
accompanied by payment for the shares being purchased. Such payment shall be
made: (a) by certified or official bank check (or the equivalent thereof
acceptable to the Company) for the full option exercise price; or (b) unless the
applicable Plan Agreement provides otherwise, by delivery of shares of Common
Stock (which, if acquired pursuant to exercise of a stock option, were acquired
at least six months prior to the option exercise date) and having a Fair Market
Value (determined as of the exercise date) equal to all or part of the option
exercise price and a certified or official bank check (or the equivalent thereof
acceptable to the Company) for any remaining portion of the full option exercise
price; or (c) at the discretion of the Committee and to the extent permitted by
law, by such other provision as the Committee may from time to time prescribe.

          2.4.4 Promptly after receiving payment of the full option
exercise price, or after receiving notice of the exercise of a stock
appreciation right for which payment will be made partly or entirely in shares,
the Company shall, subject to the provisions of Section 3.3 (relating to certain
restrictions), deliver to the grantee or to such other person as may then have
the right to exercise the award, a certificate or certificates for the shares of
Common Stock for which the award has been exercised. If the method of payment
employed upon option exercise so requires, and if applicable law permits, an
optionee may direct the Company to deliver the certificate(s) to the optionee’s
stockbroker.

 

 

2.5 TERMINATION OF EMPLOYMENT; DEATH

          2.5.1 Except to the extent otherwise provided in Section 2.5.2
or 2.5.3 or in the applicable Plan Agreement, all options and stock appreciation
rights not theretofore exercised shall terminate upon termination of the
grantee’s employment for any reason (including death).

          2.5.2 If a grantee’s employment terminates for any reason
other than death or dismissal for cause, the grantee may exercise any
outstanding option or stock appreciation right on the following terms and
conditions: (a) exercise may be made only to the extent that the grantee was
entitled to exercise the award on the date of employment termination; and (b)
exercise must occur within 90 days after employment terminates, except that this
90 day period shall be increased to one year if the termination is by reason of
disability, but in no event after the expiration date of the award as set forth
in the Plan Agreement. In the case of an incentive stock option, the term
“disability” for purposes of the preceding sentence shall have the meaning given
to it by section 422(c)(6) of the Code.

          2.5.3 If a grantee dies while employed by the Company or any
subsidiary, or after employment termination but during the period in which the
grantee’s awards are exercisable pursuant to Section 2.5.2, any outstanding
option or stock appreciation right shall be exercisable on the following terms
and conditions: (a) exercise may be made only to the extent that the grantee was
entitled to exercise the award on the date of death; and (b) exercise must occur
by the earlier of the first anniversary of the grantee’s death or the expiration
date of the award. Any such exercise of an award following a grantee’s death
shall be made only by the grantee’s executor or administrator, unless the
grantee’s will specifically disposes of such award, in which case such exercise
shall be made only by the recipient of such specific disposition. If a grantee’s
personal representative or the recipient of a specific disposition under the
grantee’s will shall be entitled to exercise any award pursuant to the preceding
sentence, such representative or recipient shall be bound by all the terms and
conditions of the Plan and the applicable Plan Agreement which would have
applied to the grantee including, without limitation, the provisions of Sections
3.3 and 3.7 hereof.

2.6 GRANT OF RESTRICTED STOCK

          2.6.1 The Committee may grant restricted shares of Common
Stock to such key persons, in such amounts, and subject to such terms and
conditions as the Committee shall determine in its discretion, subject to the
provisions of the Plan. Restricted stock awards may be made independently of or
in connection with any other award under the Plan. A grantee of a restricted
stock award shall have no rights with respect to such award unless such grantee
accepts the award within such period as the Committee shall specify by executing
a Plan Agreement in such form as the Committee shall determine and, if the
Committee shall so require, makes payment to the Company by certified or
official bank check (or the equivalent thereof acceptable to the Company) in
such amount as the Committee may determine.

 

 

          2.6.2 Promptly after a grantee accepts a restricted stock
award, the Company shall issue in the grantee’s name a certificate or
certificates for the shares of Common Stock covered by the award. Upon the
issuance of such certificate(s), the grantee shall have the rights of a
shareholder with respect to the restricted stock, subject to the
nontransferability restrictions and Company repurchase rights described in
Sections 2.6.4 and 2.6.5 and to such other restrictions and conditions as the
Committee in its discretion may include in the applicable Plan Agreement.

          2.6.3 Unless the Committee shall otherwise determine, any
certificate issued evidencing shares of restricted stock shall remain in the
possession of the Company until such shares are free of any restrictions
specified in the applicable Plan Agreement.

          2.6.4 Shares of restricted stock may not be sold, assigned,
transferred, pledged or otherwise encumbered or disposed of except as
specifically provided in this Plan or the applicable Plan Agreement. The
Committee at the time of grant shall specify the date or dates (which may depend
upon or be related to the attainment of performance goals and other conditions)
on which the nontransferability of the restricted stock shall lapse. Unless the
applicable Plan Agreement provides otherwise, additional shares of Common Stock
or other property distributed to the grantee in respect of shares of restricted
stock, as dividends or otherwise, shall be subject to the same restrictions
applicable to such restricted stock.

          2.6.5 During the 120 days following termination of the
grantee’s employment for any reason, the Company shall have the right to require
the return of any shares to which restrictions on transferability apply, in
exchange for which the Company shall repay to the grantee (or the grantee’s
estate) any amount paid by the grantee for such shares.

2.7 GRANT OF RESTRICTED STOCK UNITS

          2.7.1 The Committee may grant awards of restricted stock units
to such key persons, in such amounts, and subject to such terms and conditions
as the Committee shall determine in its discretion, subject to the provisions of
the Plan. Restricted stock units may be awarded independently of or in
connection with any other award under the Plan.

          2.7.2 At the time of grant, the Committee shall specify the
date or dates on which the restricted stock units shall become fully vested and
nonforfeitable, and may specify such conditions to vesting as it deems
appropriate. In the event of the termination of the grantee’s employment by the
Company and its subsidiaries for any reason, restricted stock units that have
not become nonforfeitable shall be forfeited and cancelled. The Committee at any
time may accelerate vesting dates and otherwise waive or amend any conditions of
an award of restricted stock units.

 

 

          2.7.3 At the time of grant, the Committee shall specify the
maturity date applicable to each grant of restricted stock units, which may be
determined at the election of the grantee. Such date may be later than the
vesting date or dates of the award. On the maturity date, the Company shall
transfer to the grantee one unrestricted, fully transferable share of Common
Stock for each restricted stock unit scheduled to be paid out on such date and
not previously forfeited. The Committee shall specify the purchase price, if
any, to be paid by the grantee to the Company for such shares of Common Stock.

2.8 OTHER STOCK-BASED AWARDS

          The Committee may grant other types of stock-based awards
(including the grant of unrestricted shares) to such key persons, in such
amounts and subject to such terms and conditions, as the Committee shall in its
discretion determine, subject to the provisions of the Plan. Such awards may
entail the transfer of actual shares of Common Stock to Plan participants, or
payment in cash or otherwise of amounts based on the value of shares of Common
Stock.

2.9 GRANT OF DIVIDEND EQUIVALENT RIGHTS

          The Committee may in its discretion include in the Plan
Agreement with respect to any award a dividend equivalent right entitling the
grantee to receive amounts equal to the ordinary dividends that would be paid,
during the time such award is outstanding and unexercised, on the shares of
Common Stock covered by such award if such shares were then outstanding. In the
event such a provision is included in a Plan Agreement, the Committee shall
determine whether such payments shall be made in cash, in shares of Common Stock
or in another form, whether they shall be conditioned upon the exercise of the
award to which they relate, the time or times at which they shall be made, and
such other terms and conditions as the Committee shall deem appropriate.

2.10 RIGHT OF RECAPTURE

 

 

          2.10.1 If at any time within one year after the date on which
a participant exercises an option or stock appreciation right, or on which
restricted stock vests, or which is the maturity date of restricted stock units,
or on which income is realized by a participant in connection with any other
stock-based award (each of which events is a “Realization Event”), the
participant (a) is terminated for cause or (b) engages in any activity
determined in the discretion of the Committee to be in competition with any
activity of the Company, or otherwise inimical, contrary or harmful to the
interests of the Company (including, but not limited to, accepting employment
with or serving as a consultant, adviser or in any other capacity to an entity
that is in competition with or acting against the interests of the Company),
then any gain (“Gain”) realized by the participant from the Realization Event
shall be paid by the participant to the Company upon notice from the Company.
Such Gain shall be determined as of the date of the Realization Event, without
regard to any subsequent change in the Fair Market Value of a share of Common
Stock. The Company shall have the right to offset such Gain against any amounts
otherwise owed to the participant by the Company (whether as wages, vacation
pay, or pursuant to any benefit plan or other compensatory arrangement).

ARTICLE III

MISCELLANEOUS

3.1 AMENDMENT OF THE PLAN; MODIFICATION OF AWARDS

          3.1.1 The Board may from time to time suspend, discontinue,
revise or amend the Plan in any respect whatsoever, except that no such
amendment shall materially impair any rights or materially increase any
obligations under any award theretofore made under the Plan without the consent
of the grantee (or, after the grantee’s death, the person having the right to
exercise the award). For purposes of this Section 3.1, any action of the Board
or the Committee that alters or affects the tax treatment of any award shall not
be considered to materially impair any rights of any grantee.

          3.1.2 Shareholder approval of any amendment shall be obtained
to the extent necessary to comply with section 422 of the Code (relating to
incentive stock options) or other applicable law or regulation.

          3.1.3 The Committee may amend any outstanding Plan Agreement,
including, without limitation, by amendment which would accelerate the time or
times at which the award becomes unrestricted or may be exercised, or waive or
amend any goals, restrictions or conditions set forth in the Agreement. However,
any such amendment (other than an amendment pursuant to Section 3.7.2, relating
to change in control) that materially impairs the rights or materially increases
the obligations of a grantee under an outstanding award shall be made only with
the consent of the grantee (or, upon the grantee’s death, the person having the
right to exercise the award).

3.2 TAX WITHHOLDING

          3.2.1 As a condition to the receipt of any shares of Common
Stock pursuant to any award or the lifting of restrictions on any award, or in
connection with any other event that gives rise to a federal or other
governmental tax withholding obligation on the part of the Company relating to
an award (including, without limitation, FICA tax), the Company shall be
entitled to require that the grantee remit to the Company an amount sufficient
in the opinion of the Company to satisfy such withholding obligation.

 

 

          3.2.2 If the event giving rise to the withholding obligation
is a transfer of shares of Common Stock, then, unless otherwise specified in the
applicable Plan Agreement, the grantee may satisfy the withholding obligation
imposed under Section 3.2.1 by electing to have the Company withhold shares of
Common Stock having a Fair Market Value equal to the amount of tax to be
withheld. For this purpose, Fair Market Value shall be determined as of the date
on which the amount of tax to be withheld is determined (and any fractional
share amount shall be settled in cash).

3.3 RESTRICTIONS

          3.3.1 If the Committee shall at any time determine that any
consent (as hereinafter defined) is necessary or desirable as a condition of, or
in connection with, the granting of any award under the Plan, the issuance or
purchase of shares or other rights thereunder, or the taking of any other action
thereunder (each such action being hereinafter referred to as a “plan action”),
then such plan action shall not be taken, in whole or in part, unless and until
such consent shall have been effected or obtained to the full satisfaction of
the Committee.

          3.3.2 The term “consent” as used herein with respect to any
plan action means (a) any and all listings, registrations or qualifications in
respect thereof upon any securities exchange or under any federal, state or
local law, rule or regulation, (b) any and all written agreements and
representations by the grantee with respect to the disposition of shares, or
with respect to any other matter, which the Committee shall deem necessary or
desirable to comply with the terms of any such listing, registration or
qualification or to obtain an exemption from the requirement that any such
listing, qualification or registration be made and (c) any and all consents,
clearances and approvals in respect of a plan action by any governmental or
other regulatory bodies.

3.4 NONASSIGNABILITY

          Except to the extent otherwise provided in the applicable Plan
Agreement, no award or right granted to any person under the Plan shall be
assignable or transferable other than by will or by the laws of descent and
distribution, and all such awards and rights shall be exercisable during the
life of the grantee only by the grantee or the grantee’s legal representative.

			
	3.5	 	REQUIREMENT OF NOTIFICATION OF
ELECTION UNDER SECTION 83(B) OF THE CODE

          If any grantee shall, in connection with the acquisition of
shares of Common Stock under the Plan, make the election permitted under section
83(b) of the Code (that is, an election to include in gross income in the year
of transfer the amounts specified in section 83(b)), such grantee shall notify
the Company of such election within 10 days of filing notice of the election
with the Internal Revenue Service, in addition to any filing and notification
required pursuant to regulations issued under the authority of Code section
83(b).

			
	3.6	 	REQUIREMENT OF NOTIFICATION UPON DISQUALIFYING
DISPOSITION UNDER SECTION 421(B) OF THE CODE

 

 

          If any grantee shall make any disposition of shares of Common
Stock issued pursuant to the exercise of an incentive stock option under the
circumstances described in section 421(b) of the Code (relating to certain
disqualifying dispositions), such grantee shall notify the Company of such
disposition within 10 days thereof.

3.7 CHANGE IN CONTROL

          3.7.1 For purposes of this Section 3.7, a “change in control”
shall be deemed to have occurred upon the happening of any of the following
events:

          (a) any “person”, as such term is used in Sections 13(d) and
14(d) of the 1934 Act, is or becomes the “beneficial owner” (as defined in Rule
13d-3 under the 1934 Act), directly or indirectly, whether by purchase or
acquisition or agreement to act in concert or otherwise, of 15% or more of the
outstanding shares of Common Stock of the Company; or

          (b) a cash tender or exchange offer for 50% or more of the
outstanding shares of Common Stock of the Company is commenced; or

          (c) the shareholders of the Company approve an agreement to
merge, consolidate, liquidate, or sell all or substantially all of the assets of
the Company; or

          (d) two or more directors are elected to the Board without
having previously been nominated and approved by the members of the Board
incumbent on the day immediately preceding such election.

          3.7.2 Upon the happening of a change in control:

     (a) notwithstanding any other provision of this Plan, any option or stock
appreciation right then outstanding whose date of grant was at least one year
prior to the date of the Change in Control shall become fully vested and
immediately exercisable unless the applicable Plan Agreement expressly provides
otherwise;

     (b) to the fullest extent permitted by law, the Committee may, in its sole
discretion, amend any Plan Agreement in such manner as it deems appropriate,
including, without limitation, by amendments that advance the dates upon which
any or all outstanding shares of restricted stock shall become free of
restrictions or that advance the dates upon which any or all outstanding awards
of any type shall terminate.

          3.7.3 Whenever deemed appropriate by the Committee, any action
referred to in Section 3.7.2(b) may be made conditional upon the consummation of
the applicable Change in Control transaction.

 

 

3.8 RIGHT OF DISCHARGE RESERVED

          Nothing in the Plan or in any Plan Agreement shall confer upon
any grantee the right to continue in the employ of the Company or affect any
right which the Company may have to terminate such employment.

3.9 NATURE OF PAYMENTS

          3.9.1 Any and all grants of awards and issuances of shares of
Common Stock under the Plan shall be in consideration of services performed for
the Company by the grantee.

          3.9.2 All such grants and issuances shall constitute a special
incentive payment to the grantee and shall not be taken into account in
computing the amount of salary or compensation of the grantee for the purpose of
determining any benefits under any pension, retirement, profit-sharing, bonus,
life insurance or other benefit plan of the Company or under any agreement
between the Company and the grantee, unless such plan or agreement specifically
provides otherwise.

3.10 NON-UNIFORM DETERMINATIONS

          The Committee’s determinations under the Plan need not be
uniform and may be made by it selectively among persons who receive, or are
eligible to receive, awards under the Plan (whether or not such persons are
similarly situated). Without limiting the generality of the foregoing, the
Committee shall be entitled, among other things, to make non-uniform and
selective determinations, and to enter into non-uniform and selective Plan
agreements, as to (a) the persons to receive awards under the Plan, (b) the
terms and provisions of awards under the Plan, and (c) the treatment of leaves
of absence pursuant to Section 1.6.4.

3.11 OTHER PAYMENTS OR AWARDS

          Nothing contained in the Plan shall be deemed in any way to
limit or restrict the Company from making any award or payment to any person
under any other plan, arrangement or understanding, whether now existing or
hereafter in effect.

3.12 SECTION HEADINGS

          The section headings contained herein are for the purpose of
convenience only and are not intended to define or limit the contents of the
sections.

3.13 EFFECTIVE DATE; TERM OF PLAN; 1993 PLAN

 

 

          3.13.1 The Plan was adopted by the Board on October 24, 1997,
subject to approval by the Company’s shareholders. All awards under the Plan
prior to such shareholder approval are subject in their entirety to such
approval. If such approval is not obtained prior to the first anniversary of the
date of adoption of the Plan, the Plan and all awards thereunder shall terminate
on that date.

          3.13.2 Unless sooner terminated by the Board, the provisions
of the Plan respecting the grant of incentive stock options shall terminate on
the day before the tenth anniversary of the adoption of the Plan by the Board,
and no incentive stock option awards shall thereafter be made under the Plan.
All awards made under the Plan prior to its termination shall remain in effect
until such awards have been satisfied or terminated in accordance with the terms
and provisions of the Plan and the applicable Plan Agreements.

          3.13.3 Nothing herein shall alter, modify, change or otherwise
affect any awards granted pursuant to the 1993 Plan, which shall be governed by
the terms of the 1993 Plan and any applicable agreement

3.14 GOVERNING LAW

          All rights and obligations under the Plan shall be construed
and interpreted in accordance with the laws of the State of New York, without
giving effect to principles of conflict of laws.exv10w4

Exhibit 10.4

Execution Copy

EMPLOYMENT AGREEMENT

     THIS
EMPLOYMENT AGREEMENT (this “Agreement”) is dated as of July      ,
2005 and is between A-MARK PRECIOUS METALS, INC., a New York corporation (“Company”), and THOR
C. GJERDRUM, an individual (“Mr. Gjerdrum”), and is made with reference to the following facts.

     A. Mr. Gjerdrum is currently employed by Company as its Chief Financial Officer and Chief
Administrative Officer pursuant to that certain letter of employment dated August 29, 2002
between Company and Mr. Gjerdrum (the “Existing
Agreement”).

     B. Company now wishes to continue to employ Mr. Gjerdrum, and Mr. Gjerdrum wishes to
continue to be so employed, on the terms and conditions set forth in this Agreement. The
Existing Agreement is hereby superceded and replaced in its entirety.

     NOW, THEREFORE, Company and Mr. Gjerdrum hereby agree as follows:

     1. Employment;
Term. Company hereby employs Mr. Gjerdrum, and Mr. Gjerdrum hereby
accepts employment with Company, in accordance with and subject to the terms and conditions set
forth in this Agreement. The initial term of this Agreement (the “Initial Term”) commences on
the date of this Agreement and, unless earlier terminated in accordance with Section 6, will
terminate on the fifth anniversary of the date of this Agreement. Company and Mr. Gjerdrum may
extend the term of this Agreement for one or more additional one (1) year periods by written
agreement signed by them prior to the end of the Initial Term or the then current extension
thereof, as applicable (the Initial Term and any extensions thereof,
the “Term”).

     2. Duties. (a) During the Term, Mr. Gjerdrum shall serve as Chief Financial
Officer and Chief Administrative Officer of Company and shall report to the Chief Executive
Officer of Company. Mr. Gjerdrum will have such duties and responsibilities as are customary
for Mr. Gjerdrum’s positions and any other duties or responsibilities he may be reasonably
assigned by Company’s Chief Executive Officer.

          (b) During the period Mr. Gjerdrum is employed by Company, Mr. Gjerdrum shall be required
to devote his full business time and best efforts exclusively to the business and affairs of
Company and will not directly or indirectly engage in any other business or competitive
activity which has not been disclosed to and approved in writing by Company.

          (c) Except in the ordinary course of performing his duties hereunder, in accordance with
Company’s annual business plan and any other guidelines or policies approved by Company’s Chief
Executive Officer or Board of Directors, Mr. Gjerdrum shall not have the authority to create or
execute any contract or obligation, either express or implied, on behalf of or in the name of
Company or any of its affiliates, which is intended to be binding upon
Company or for which Company would be liable without the prior written consent of the Company’s
Chief Executive Officer.

     3. Compensation. (a) Company shall pay Mr. Gjerdrum a salary of One Hundred
Sixty-Five Thousand Dollars ($165,000.00) per annum (the “Base Salary”). In addition,

 

 

Mr. Gjerdrum will receive a one-time signing payment in the amount of Twenty Thousand Dollars
($20,000.00) (“Signing Payment”) upon execution of this Agreement and a year-end performance bonus
provided he is continuously employed by Company through and until June 30th of each
year (the “Vesting Date”) during the Term (“Percentage Compensation”). Percentage Compensation is
not pro-rated and will be paid in respect of a particular year only if Mr. Gjerdrum is employed by
Company on the Vesting Date for such year. Percentage Compensation will be calculated as described
below. Payment of the Base Salary, Signing Payment and Percentage Compensation will be in
accordance with Company’s standard payroll practices and subject to all legally required or
customary withholdings.

          (b) For each fiscal year of employment in which Company’s shareholder equity is in excess of
Ten Million Dollars ($10,000,000.00), Company shall pay to Mr. Gjerdrum, within ninety (90)
calendar days from the close of that fiscal year, Percentage Compensation equal to three and
three-fourths percent (3 3/4%) of its Net Pre-Tax Annual Income (as defined below), but in no
event less than Thirty Thousand Dollars ($30,000.00). For this purpose the Company’s “shareholder
equity” shall only be reduced by losses from its business operations as determined by the
independent certified accountants regularly retained by Company, in accordance with consistently
and conservatively applied generally accepted accounting principles. Nothing herein prevents the
Company from paying Mr. Gjerdrum additional bonus amounts.

               (c) Subject to the provisions of this Section 3(e), the “Net Pre-Tax Annual Income” as used in
this Agreement, shall mean the pre-tax operating income, before bonuses are paid, as per the books
and records for a fiscal year, as determined by the independent certified accountants regularly
retained by Company, in accordance with consistently and conservatively applied generally accepted
accounting principles, adjusted for (i) any and all compensation paid, or accrued and payable, to
other employees and independent contractors of Company, including, without limitation, any and all
bonuses due other employees, and (ii) any other amounts payable to Mr. Gjerdrum pursuant to this
Agreement. In determining the Net Pre-Tax Annual Income all interest on loans accrued or paid by
Company, whether to third parties, shareholders of Company or to affiliated entities, shall be
deducted from Company’s gross income prior to arriving at the Net Pre-Tax Annual Income. No
increase in historical amortization of goodwill, if any, nor any direct cost incurred in connection
with the consummation of the transactions contemplated by the Stock Purchase Agreement, dated as of
the date hereof, by and among [Acquisition Company], A-Mark Holding, Inc. and Steven C. Markoff
shall be deducted from Company’s gross income prior to arriving at the Net Pre-Tax Annual Income.

     4. Stock
Appreciation Rights. Concurrently with execution and delivery of this
Agreement, Greg Manning Auctions, Inc. (“GMAI”), the indirect 80% parent of Company, shall,
pursuant to a Stock Appreciation Right Agreement between GMAI and Mr. Gjerdrum in the
form of Exhibit A attached hereto, grant to
Mr. Gjerdrum a stock appreciation right with respect to
Twelve Thousand Five Hundred (12,500) shares of common stock of GMAI.

     5. Benefits. (a) Upon submission by Mr. Gjerdrum of vouchers in accordance with
Company’s standard procedures, Company shall reasonably promptly reimburse Mr. Gjerdrum

 

 

for all reasonable and necessary travel, business entertainment and other business expenses
incurred by Mr. Gjerdrum in connection with the performance of his duties under this Agreement.

          (b) Mr. Gjerdrum is entitled to participate in any and all medical insurance, group health,
disability insurance, employee bonus compensation programs and other benefit plans that are made
generally available by Company to employees of Company. Company shall pay all premiums payable in
connection with medical insurance provided for Mr. Gjerdrum. Additionally, Mr. Gjerdrum is
entitled to receive four (4) weeks paid vacation a year and paid holidays made available pursuant
to Company’s policy to all employees of Company. Company, in its sole discretion, may at any time
amend or terminate any such benefit plans or programs.

     6. Termination. Mr. Gjerdrum’s employment hereunder may be terminated prior to
the end of the Term under the following circumstances:

          (a) Mr. Gjerdrum’s employment hereunder will terminate upon Mr. Gjerdrum’s
death.

          (b) Except as otherwise required by law, Company may terminate Mr. Gjerdrum’s employment
hereunder at any time after Mr. Gjerdrum becomes Totally Disabled. For purposes of this Agreement,
Mr. Gjerdrum will be “Totally Disabled” as of the earlier of (1) the date Mr. Gjerdrum becomes
entitled to receive disability benefits under Company’s long-term disability plan, or (2) Mr.
Gjerdrum’s inability to perform the duties and responsibilities contemplated under this
Agreement for a period of more than ninety (90) consecutive days due to physical or mental
incapacity or impairment.

          (c) Company may terminate Mr. Gjerdrum’s employment hereunder for Cause at any time after
providing written notice to Mr. Gjerdrum. For purposes of this
Agreement, “Cause” means any of
the following:

               (1) Mr. Gjerdrum’s neglect or failure or refusal to perform his duties under this Agreement
(other than as a result of total or partial incapacity due to physical or mental illness);

               (2) any wrongful act by or omission of Mr. Gjerdrum that materially injures the reputation,
business, or business relationship of Company or any of its affiliates, or that that in the good
faith judgment of the Company, constitutes fraud or intentional misconduct;

               (3) Mr. Gjerdrum’s conviction (including conviction on a nolo contendere plea)
of a felony or any crime involving, in the good faith judgment of Company, fraud, dishonesty or
moral turpitude;

               (4) the breach of an obligation set forth in Section 8, 9 or 10;

               (5) any other material breach of this Agreement; or

               (6) upon the sale of all or substantially all of the stock or assets of Company or the
shutdown of its operations.

 

 

In the cases of “neglect or failure” to perform his duties under this Agreement as set forth in
6(c)(1) above, or material breach as set forth in
6(c)(5) above, a termination by Company with
Cause shall be effective only if, within thirty (30) days following delivery of a written notice
by Company to Mr. Gjerdrum that Company is terminating his employment with Cause (which notice
shall set forth the basis of the alleged neglect, failure or breach), Mr. Gjerdrum has failed to
cure the circumstances giving rise to such Cause.

     (d) Company may terminate Mr. Gjerdrum’s employment hereunder for any reason, upon thirty (30)
days’ prior written notice.

     (e) Mr. Gjerdrum may terminate his employment hereunder for “Good Reason” if Company decreases
or fails to pay Mr. Gjerdrum’s Base Salary or Percentage Compensation as provided in Section 3 or
the benefits described in Section 5 above, or if Company makes a material change in Mr. Gjerdrum’s
job description or duties. A termination by Mr. Gjerdrum shall be effective only if, within thirty
(30) days following delivery of a written notice by Mr. Gjerdrum to Company that Mr. Gjerdrum is
terminating his employment (which notice shall set forth in reasonable detail the alleged decrease
or failure by Company), Company has failed to cure the circumstances giving rise to the
termination.

     7. Compensation
Following Termination Prior to the End of the Term. In the event that
Mr. Gjerdrum’s employment hereunder is terminated prior to the end of the Term, Mr. Gjerdrum will
be entitled only to the following compensation and benefits upon such termination:

          (a) In the event that Mr. Gjerdrum’s employment hereunder is terminated prior to the
expiration of the Term by reason of Mr. Gjerdrum’s death or if he becomes Totally Disabled
pursuant to Sections 6(a) or 6(b), respectively, Company shall pay the following amounts to Mr.
Gjerdrum (or to Mr. Gjerdrum’s estate, as the case may be):

               (1) any accrued but unpaid Base Salary (as determined pursuant to Section 3) for services
rendered to the date of termination;

               (2) any incurred but unreimbursed expenses required to be reimbursed pursuant to Sections 5(a)
or 5(b), payable within thirty (30) days following Mr. Gjerdrum’s submission of vouchers in
accordance with Company’s standard business procedures; and

               (3) any vacation accrued and unused to the date of termination.

          (b) In the event that Mr. Gjerdrum’s employment hereunder is terminated prior to the
expiration of the Term by Company for Cause pursuant to Section 6(c) (except pursuant to Section
6(c)(6), which is covered by Section 7(c) below), or by Mr. Gjerdrum without Good Reason, Company
shall pay the following amounts to Mr. Gjerdrum:

               (1) any accrued but unpaid Base Salary (as determined pursuant to Section 3) for
services rendered to the date of termination;

 

 

               (2) any incurred but unreimbursed expenses required to be reimbursed pursuant to Sections 5(a)
or 5(b), payable within thirty (30) days following Mr. Gjerdrum’s submission of vouchers in
accordance with Company’s standard business procedures; and

               (3) any vacation accrued and unused to the date of termination.

          (c) In the event that Mr. Gjerdrum’s employment hereunder is terminated by Company without
Cause pursuant to Section 6 (d), by Mr. Gjerdrum with Good Reason pursuant to Section 6(e), or by
Company pursuant to Section 6(c)(6), Company shall pay the following amounts to Mr. Gjerdrum:

               (1) any accrued but unpaid Base Salary (as determined pursuant to Section 3) for services
rendered to the date of termination;

               (2) any incurred but unreimbursed expenses required to be reimbursed pursuant to Sections 5(a)
or 5(b), payable within thirty (30) days following Mr. Gjerdrum’s submission of vouchers in
accordance with Company’s standard business procedures;

               (3) any vacation accrued and unused to the date of termination;

               (4) continued payments of Base Salary until the earlier of (i) the expiration of the Term or
(ii) the one year anniversary of the date of termination of Mr. Gjerdrum’s employment, payable in
installments in accordance with Company’s standard payroll practices. Except as otherwise required
by law, the payment of any amounts pursuant to this Section 7(c)(5) shall be due and payable only
after the delivery by Mr. Gjerdrum to Company of a release in form and substance reasonably
satisfactory to Company of any and all claims Mr. Gjerdrum may have against Company and its
directors, officers, employees, subsidiaries, affiliates, stockholders, successors, assigns, agents
and representatives as of the date of such release arising out of or related to Mr. Gjerdrum’s
employment by Company and the termination of such employment.

          (d) The benefits to which Mr. Gjerdrum may be entitled upon termination pursuant to the plans,
policies and arrangements referred to in Section 5(b) will be determined and paid in accordance
with the terms of those plans, policies and arrangements.

          (e) Except as may be provided under this Agreement, under the terms of any incentive
compensation, employee benefit, or fringe benefit plan applicable to Mr. Gjerdrum at the time of
termination of Mr. Gjerdrum’s employment prior to the end of the Term, Mr. Gjerdrum will not be
entitled to receive any other compensation, or to participate in any other plan, arrangement or
benefit, with respect to any future period after his termination or resignation.

     8. Proprietary Information.

          (a) Mr. Gjerdrum acknowledges that during the course of his employment with Company he will
necessarily have access to and make use of proprietary information and confidential records of
Company and its affiliates. Mr. Gjerdrum shall not during the Term or at any time thereafter
directly or indirectly use for his own purpose or for the benefit of any person or entity other
than Company or it affiliates, nor otherwise disclose any proprietary information

 

 

to any person or entity, unless that disclosure has been authorized in writing by Company or is
otherwise required by law.

          (b) Mr. Gjerdrum understands that subject to Section 8(c), the term
“proprietary information” includes, but is not limited to, the following:

               (1) the name and address of any customer or vendor of Company or
any of its affiliates, including without limitation any information concerning the
transactions
with such customers and vendors, buying and selling requirements of such customers and
vendors, or their criteria or habits, or Company’s relations with any such customer or vendor,
including credit policies, all of which constitutes Company’s trade secrets;

               (2) any information concerning any product, technology, or procedure
employed by Company or its affiliates but not generally known to their customers, vendors or
competitors, or under development by or being tested by Company or its affiliates, but not at
the
time offered generally to customers or vendors;

               (3) any information relating to Company’s or its affiliates computer
software, computer systems, pricing or marketing methods, sales margins, credit policies, cost
of
goods, cost of material, capital structure, operating results, borrowing arrangements or
business
plans;

               (4) any information which is generally regarded as confidential or
proprietary in any line of business engaged in by Company or its affiliates;

               (5) any business plans, budgets, advertising or marketing plans of
Company or its affiliates;

               (6) any information contained in any of Company’s or its affiliates
written or oral policies and procedures or manuals;

               (7) any information belonging to customers, vendors or affiliates of
Company or any other person or entity which Company has agreed to hold in confidence;

               (8) any inventions, innovations or improvements covered by this
Agreement;

               (9) salary, staffing, employment and contractor information of
Company or its affiliates; and

               (10) all materials relating to or embodying any of the foregoing,
whether in a handwritten, printed, graphic, video, audio, electronic or other medium.

          (c) Mr. Gjerdrum acknowledges that information that is not novel or
copyrighted or patented may nonetheless be proprietary information.

          (d) The term “proprietary information” does not include information generally
available to and known by the public or information that is or becomes available to Mr.
Gjerdrum on a non-confidential basis from a source other than Company or its affiliates or

          
 

 

their respective directors, officers, employees, partners, principals or agents (other than as a
result of a breach of any obligation of confidentiality).

          (e) Mr. Gjerdrum acknowledges and agrees that the unauthorized sale or use
of Company’s proprietary information constitutes such unfair
competition. Mr. Gjerdrum
covenants and agrees not to engage in any unfair competition with Company either during the
Term or any time thereafter.

          (f) Mr. Gjerdrum acknowledges and agrees that no employee of Company,
including himself, has any private space within Company’s premises.

     9. Surrender of Records. All proprietary information is and will remain the sole and
exclusive property of Company (or its affiliates, as the case may be) during the Term and
thereafter. Following termination of his employment hereunder for any reason, Mr. Gjerdrum
may not retain any proprietary information, nor any copies thereof and shall promptly return
to
Company any proprietary information and all copies thereof in his possession or control.

     10. Intellectual Property. All inventions, innovations (including, without
limitation,
policies, procedures, products, improvements, software, ideas and discoveries, whether
patents,
copyrights, trademarks, service mark, or otherwise) conceived or made by Mr. Gjerdrum, either
alone or jointly with others, in the course of his employment by Company, and any derivatives
of
any such inventions, innovations, or improvements, belong to Company. Mr. Gjerdrum shall
promptly disclose to Company in writing all such inventions, innovations or improvements and
perform all actions reasonably requested by Company to establish and confirm ownership by
Company, including, but not limited to, cooperating with and assisting Company in obtaining
patents, copyrights, trademarks, or service marks for Company in the United States and in
foreign countries.

     11. Confidentiality. Mr. Gjerdrum shall keep confidential the terms of this
Agreement. This provision does not prohibit Mr. Gjerdrum from providing this information to
his attorneys or accountants for purposes of obtaining legal or tax advice or as otherwise
required
by law. Company shall not disclose the terms of this Agreement except as necessary in the
ordinary course of its business or as required by law.

     12. Enforcement. Mr. Gjerdrum acknowledges that, by virtue of his position, his
services and access to and use of confidential records and proprietary information, any
violation
by him of any of the undertakings contained in Sections 8 through 11 may cause Company
immediate, substantial and irreparable injury for which it has no adequate remedy at law.
Accordingly, Mr. Gjerdrum consents to Company and its affiliates seeking entry of an
injunction
or other equitable relief from a court of competent jurisdiction restraining any violation or
threatened violation of any undertaking contained in Sections 8 through 11. Mr. Gjerdrum
waives posting by Company of any bond otherwise necessary to secure any such injunction or
other equitable relief. Rights and remedies provided for in this Section 12 are cumulative
and
shall be in addition to rights and remedies otherwise available to the parties hereunder or
under
any other agreement or applicable law.

     13. Notices. Every notice or other communication required or contemplated by this
Agreement must be in writing and sent by one of the following methods: (1) personal delivery,

 

 

in which case delivery is deemed to occur the day of delivery; (2) certified or registered mail,
postage prepaid, return receipt requested, in which case delivery is deemed to occur the day it is
officially recorded by the U.S. Postal Service as delivered to the intended recipient; or (3)
next-day delivery to a U.S. address by recognized overnight delivery service such as Federal
Express, in which case delivery is deemed to occur one business day after being sent. In each case,
a notice or other communication sent to a party must be directed to the address for that party set
forth below, or to another address designated by that party by written notice:

If to Company, to:

A-MARK PRECIOUS METALS, INC.

c/o Spectrum Numismatics International, Inc.

18022 Cowan, Suite 105

Irvine, California 92614

Attention: Gregory N. Roberts

With a copy to:

KRAMER LEVIN NAFTALIS & FRANKEL LLP

1177 Avenue of the Americas

New York, New York 10036

Attention: Scott S. Rosenblum, Esq.

and with a copy to:

FRYE & HSIEH, LLP

24955 Pacific Coast Highway

Suite A201

Malibu, CA 90265-4747

Attention: Douglas Frye, Esq.

If
to MR. GJERDRUM, to:

	 	 	 	 	 
	 

	 	THOR GJERDRUM	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 
	 

	 	With a copy to:

	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 
	 

	 	Attention:	 	 
	 

	 	 

	 	 

 

 

     14. Assignability; Binding Effect. This Agreement is a personal contract calling for
the provision of unique services by Mr. Gjerdrum, and Mr. Gjerdrum’s rights and obligations
hereunder may not be sold, transferred, assigned, pledged or hypothecated. In the event of any
attempted assignment or transfer of rights or obligations hereunder by Mr. Gjerdrum contrary
to
the provisions of this Agreement (other than any assignment or transfer rights as may be
required
by law), Company will have no further liability for payments under this Agreement. The rights
and obligations of Company under this Agreement bind and run in favor of the successors and
assigns of Company. Company may assign this Agreement or any or all of Company’s rights and
obligations hereunder without the prior consent of Mr. Gjerdrum.

     15. Complete Understanding. Except for the Stock Option Agreement attached
hereto, this Agreement constitutes the complete understanding between the parties with respect
to the employment of Mr. Gjerdrum by Company and supersedes all prior agreements and
understandings, both written and oral, between the parties with respect to the subject matter
of
this Agreement, including, without limitation, the Existing Agreement.

     16. Amendments; Waivers. This Agreement may not be amended except by an
instrument in writing signed on behalf of Company and Mr. Gjerdrum. No waiver by any party
of any breach under this Agreement will be deemed to extend to any prior or subsequent breach
or affect in any way any rights arising by virtue of any prior or subsequent such occurrence.
Waiver by either party of any breach by the other party will not operate as a waiver of any
other
breach, whether similar to or different from the breach waived. No delay on the part of
Company or Mr. Gjerdrum in the exercise of any of their respective rights or remedies will
operate as a waiver of that right.

     17. Severability. If any provision of this Agreement or its application to any person
or circumstances is determined by any court of competent jurisdiction to be unenforceable to
any
extent, that unenforceable provision will be deemed eliminated to the extent necessary to
permit
the remaining provisions to be enforced, and the remainder of this Agreement, or the
application
of the unenforceable provision to other persons or circumstances, will not be affected
thereby. If
any provision of this Agreement, or any part thereof, is held to be unenforceable because of
the
scope or duration of or the area covered by that provision, the court making that
determination
shall reduce the scope, duration of or area covered by that provision or otherwise amend the
provision to the minimum extent necessary to make that provision enforceable to the fullest
extent permitted by law.

     18. Survivability. The provisions of this Agreement that by their terms call for
performance subsequent to termination of Mr. Gjerdrum’s employment hereunder, or of this
Agreement, will survive such termination.

     19. Governing Law. This Agreement is governed by the laws of the State of
California, without giving effect to principles of conflict of laws.

     20. Binding
Arbitration. (a) Any controversy, dispute or claim arising out of or
relating to the interpretation, performance or breach of this Agreement or Mr. Gjerdrum’s
employment or termination of employment hereunder shall be resolved by binding arbitration, at
the request of either party, in Los Angeles County, California, in accordance with the rules
of the
American Arbitration Association then in effect. The arbitrators shall have the power to grant
all

 

 

legal and equitable remedies and award compensatory damages provided by California law. The
arbitrators shall issue a statement of findings of facts. The arbitrators shall be deemed to have
“exceeded his powers” for purposes of California Code of Civil Procedure Sections 1286.2 or 1286.6
if they commit errors of law or legal reasoning. The award of the arbitrators may be vacated or
corrected pursuant to California Code of Civil Procedure. If for any reason a court of competent
jurisdiction refuses to review the arbitration award for errors of law or legal reasoning, at the
request of either party, a three-person private review panel shall hear such matters. Each of the
parties shall select one member of the private review panel, and these two panel members shall
select the third member of the panel. Any judgment upon any award rendered by the arbitrator(s)
may be entered in any court of competent jurisdiction. In the event of any such arbitration, the
prevailing party shall be entitled to receive, in addition to any award or judgment, full costs,
including reasonable attorneys’ fees and costs incurred in connection with such proceeding or
arbitration.

          (b) Notwithstanding the foregoing, any action or proceeding (1) seeking injunctive relief
pursuant to Section 12 hereof, (2) arising in connection with an arbitration proceeding brought
under clause (i) above, or (3) relating to any matter which is not legally arbitrable for any
reason, shall be instituted and prosecuted in the state courts of the State of California, County
of Los Angeles, or the federal district court in and for the Central District of California located
in Los Angeles, and each party waives the right to change the venue.

[Remainder of page intentionally left blank.]

 

 

     IN WITNESS WHEREOF, the undersigned have executed and delivered, or caused to be
executed and delivered by an authorized representative, this EMPLOYMENT AGREEMENT on
the date stated in the introductory clause.

	 	 	 	 	 
	 	“Company”

A-MARK PRECIOUS METALS, INC.

A New York Corporation

 	 
	 	By:  	/s/ Greg Robert
 	 
	 	 	Name:  	GREG ROBERT 	 
	 	 	Title:  	CEO 	 
	 
	 
	 

	“Mr. Gjerdrum”	 
	 
	 	 
	 

	/s/ Thor Gjerdrum
 

THOR GJERDRUM, individually
	 

[Signature Page — Gjerdrum Employment Agreement]

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