Document:

exv10w5

Exhibit 10.5

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 RAND LeSHAY, an individual
(“Mr. LeShay”), and is made with reference to the following facts.

STATEMENTS OF FACT:

     A. Mr. LeShay is currently employed by Company as its Senior Vice President, pursuant to
that certain employment agreement dated August 18, 1995, between Company and Mr. LeShay (the
“Existing Agreement”).

     B. Company now wishes to continue to employ Mr. LeShay, and Mr. LeShay 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is hereby superceded and replaced in its entirety.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. LeShay hereby agree as follows:

     1. Employment; Term. Company hereby employs Mr. LeShay, and Mr. LeShay 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. LeShay 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. LeShay shall serve as Senior Vice President of
Company and shall report to the Chief Executive Officer of Company. Mr. LeShay’s primary duties
will be to identify, fully disclose and present to Company for its possible investment, any and
all business opportunities, whether passive or active, whether related or unrelated to Company’s
primary business that he becomes aware of while an employee of Company, either because of his
position as Senior Vice President or otherwise. In addition, he will have such duties and
responsibilities as are customary for Mr. LeShay’s position and any other duties or
responsibilities he may be reasonably assigned by Company’s Chief Executive Officer.

          (b) During the period Mr. LeShay is employed by Company, Mr. LeShay 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, including, without
limitation, any investments of financial arrangements related to precious
metals, coins and stamps, sports memorabilia, space memorabilia, autographs, historical
documents or books.

Employment
Agreement — Page 1

 

 

          (c) Except in the ordinary course of performing his duties hereunder and 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. LeShay 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 Company’s Chief Executive Officer.

     3. Compensation. (a) Company shall pay Mr. LeShay a salary of Two Hundred Nine
Thousand Dollars ($209,000.00) per annum (the “Base Salary”). In addition, Mr. LeShay will receive
a one-time signing payment in the amount of Fifty Thousand Dollars ($50,000.00) (“Signing
Payment”) upon execution of this Agreement and a year-end performance bonus (“Percentage Bonus”)
calculated and paid as described below. Payment of the Base Salary, Signing Payment and Percentage
Bonus 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. LeShay, within ninety (90) calendar
days from the close of that fiscal year, a Percentage Bonus equal to seven and one-half percent
(71⁄2%) of its Net Pre-Tax Annual Income (as defined below). For this purpose 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. LeShay additional bonus amounts.

          (c) In the event that Mr. LeShay’s employment is terminated by Company during a fiscal year
and Mr. LeShay is entitled to receive the Percentage Bonus for the period of such fiscal year
during which Mr. LeShay was employed by Company pursuant to Section 7(a) or 7(c) below, the parties
agree that: (i) Percentage Bonus shall be calculated on the Net Pre-Tax Annual Income of Company
reported only during the period of the then current fiscal year during which Mr. LeShay was
employed, and (ii) the determination of Net Pre-Tax Annual Income shall take into account only
sales revenues arising from those transactions with respect to which Company entered into binding
contracts or purchases and sales tickets prior to the termination of employment and which are
consummated within sixty (60) days following such date.

          (d) 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, or the portion thereof during which Mr. LeShay is employed if less
than a full 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, and (ii)
any other amounts payable to Mr. LeShay 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

Employment
Agreement — Page 2

 

 

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 Spectrum PMI, Inc., 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 Right. 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. LeShay in the form of Exhibit A
attached hereto, grant to Mr. LeShay a stock appreciation right with respect to Twenty-Five
Thousand (25,000) shares of common stock of GMAI.

     5. Benefits.

          (a) Upon submission by Mr. LeShay of vouchers in accordance with Company’s standard
procedures, Company shall reasonably promptly reimburse Mr. LeShay for all reasonable and
necessary travel, business entertainment and other business expenses incurred by Mr. LeShay in
connection with the performance of his duties under this Agreement.

          (b) Mr. LeShay 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. LeShay. Additionally, Mr. LeShay 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. LeShay’s employment hereunder may be terminated prior to the end
of the Term under the following circumstances:

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

          (b) Except as otherwise required by law, Company may terminate Mr. LeShay’s employment
hereunder at any time after Mr. LeShay becomes Totally Disabled. For purposes of this Agreement,
Mr. LeShay will be “Totally Disabled” as of the earlier of (1) the date Mr. LeShay becomes
entitled to receive disability benefits under Company’s long-term disability plan, or (2) Mr.
LeShay’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. LeShay’s employment hereunder for Cause at any time after
providing written notice to Mr. LeShay. For purposes of this Agreement, “Cause” means any of
the following:

Employment Agreement — Page 3

 

 

               (1) Mr. LeShay’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. LeShay that materially injures the reputation,
business, or business relationship of Company or any of its affiliates, or that, in the good faith
judgment of Company, constitutes fraud or intentional misconduct;

               (3) Mr. LeShay’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. LeShay that Company is terminating his employment with Cause (which notice shall
set forth the basis of the alleged neglect, failure or breach), Mr. LeShay has failed to cure the
circumstances giving rise to such Cause.

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

          (e) Mr. LeShay may terminate his employment hereunder for “Good Reason” if Company decreases
or fails to pay Mr. LeShay’s Base Salary or Percentage Bonus as provided in Section 3 or the
benefits described in Section 5 above, or if Company makes a material change in Mr. LeShay’s job
description or duties. A termination by Mr. LeShay shall be effective only if, within thirty (30)
days following delivery of a written notice by Mr. LeShay to Company that Mr. LeShay is
terminating his employment (which notice shall set forth 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. LeShay’s employment hereunder is terminated prior to the end of the Term, Mr. LeShay will be
entitled only to the following compensation and benefits upon such termination:

          (a) In the event that Mr. LeShay’s employment hereunder is terminated prior to the
expiration of the Term by reason of Mr. LeShay’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. LeShay (or
to Mr. LeShay’s estate, as the case may be):

Employment Agreement — Page 4

 

 

               (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. LeShay’s submission of vouchers in accordance
with Company’s standard business procedures;

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

               (4) Percentage
Bonus through the termination date for the fiscal year in which termination
occurs, payable within sixty (60) days of the date of termination.

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

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

               (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. LeShay’s submission of vouchers in accordance
with Company’s standard business procedures;

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

               (4) Percentage
Bonus through the termination date for the fiscal year in which termination
occurs, payable within sixty (60) days of the date of termination; and

               (5) continued
payments of Base Salary until the one year anniversary of the date of termination
of Mr. LeShay’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. LeShay to Company of a release in
form and substance reasonably satisfactory to Company of any and all claims Mr. LeShay may have
against Company and its directors, officers, employees, subsidiaries, affiliates, stockholders,
successors, assigns, agents and representatives

Employment Agreement — Page 5

 

 

as of the date of such release arising out of or related to Mr. LeShay’s employment by Company and
the termination of such employment.

          (d) In
the event Mr. LeShay’s employment hereunder is terminated by Company pursuant to Section
6(c)(6), Mr. LeShay shall receive, in addition to any other payments he is entitled to hereunder,
continued payments of Base Salary until the one year anniversary of the date of termination of Mr.
LeShay’s employment, payable in installments in accordance with Company’s standard payroll
practices, unless Mr. LeShay is offered an opportunity to retain his then current position and
compensation package with the new owner of Company or its business, in which event no severance pay
shall be paid.

          (e) The
benefits to which Mr. LeShay 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.

          (f) Except
as may be provided under this Agreement, under the terms of any incentive
compensation, employee benefit, or fringe benefit plan applicable to
Mr. LeShay at the time of
termination of Mr. LeShay’s employment prior to the end of
the Term, Mr. LeShay 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. LeShay
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. LeShay 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. LeShay 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

Employment Agreement — Page 6

 

 

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

          (f) Mr. LeShay
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. LeShay 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.

Employment Agreement — Page 7

 

 

     10. Intellectual Property. All inventions, innovations or improvements
(including, without limitation, policies, procedures, products, software, ideas and discoveries,
whether patents, copyrights, trademarks, service marks, or otherwise) conceived or made by Mr.
LeShay, 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. LeShay
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. LeShay shall keep confidential the terms of this
Agreement. This provision does not prohibit Mr. LeShay 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. LeShay 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 and its affiliates
immediate, substantial and irreparable injury for which it has no
adequate remedy at law.
Accordingly, Mr. LeShay 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. LeShay 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:

Employment Agreement — Page 8

 

 

	 	 	 	 	 	 	 
	 	 	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 a copy to:
	 
	 	 	 	 	 	 
	 	 	FRYE & HSIEH, LLP
	 	 	24955 Pacific Coast Highway, Suite A201
	 	 	Malibu, California 90265
	 	 	Attention: Douglas Frye, Esq.
	 
	 	 	 	 	 	 
	 	 	If to
Mr. LeShay, to:
	 
	 	 	 	 	 	 
	 	 	RAND LESHAY
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	With a copy to:
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Attention:
	 

	 	 	 	 

	 	 

     14. Assignability; Binding Effect. This Agreement is a personal contract calling for
the provision of unique services by Mr. LeShay, and Mr. LeShay’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. LeShay contrary to the provisions
of this Agreement (other than any assignment or transfer of 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. LeShay.

Employment Agreement — Page 9

 

 

     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. LeShay 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. LeShay. 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. LeShay 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. LeShay’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. LeShay’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

Employment
Agreement — Page 10

 

 

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.]

Employment
Agreement — Page 11

 

 

     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:

Title:
	 	GREG ROBERT

CEO	 	 
	 
	 	 	 	 	 	 
	 	 	“Mr. LeShay”	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Rand LeShay	 	 
	 	 	 	 	 
	 	 	RAND LeSHAY, individually	 	 

[Signature Page — LeShay Employment Agreement]exv10w7

Exhibit 10.7

Spectrum Group International, Inc.

Employee Restricted Stock Grant Agreement

          THIS AGREEMENT, made as of [DATE], between Spectrum Group International, Inc. (the “Company”)
and [NAME] (the “Participant”).

          WHEREAS, the Company has adopted and maintains its 1997 Stock Incentive Plan (the “Plan”) to
provide for officers, other employees and directors of, and consultants to, 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;

          WHEREAS, the Plan provides that the Board of Directors of the Company (the “Board”) shall
administer the Plan and determine the key persons to whom awards shall be granted and the mount and
type of such awards; and

          NOW, THEREFORE, in consideration of the premises and the mutual covenants hereinafter set
forth, the parties hereto hereby agree as follows:

          1. Grant of Restricted Stock. Pursuant to, and subject to, the terms and conditions
set forth herein and in the Plan, the Board hereby grants to the Participant [NUMBER] restricted
shares (the “Restricted Stock”) of common stock of the Company (“Common Stock”).

          2. Grant Date. The grant date of the Restricted Stock is [DATE], which was the date
the Board approved the grant (the “Grant Date”).

          3. Incorporation of Plan. All terms, conditions and restrictions of the Plan are
incorporated herein and made part hereof as if stated herein. If there is any conflict between the
terms and conditions of the Plan and this Agreement, the terms and conditions of the Plan, as
interpreted by the Board, shall govern. Except as otherwise provided herein, all capitalized terms
used herein shall have the meaning given to such terms in the Plan.

          4. Vesting. Subject to the further provisions of this Agreement, the Restricted Stock
shall vest on the following dates, each of which shall be referred to as a “Vesting Date:”

	 	 	 
	 	 	Number of shares of Restricted
	Vesting Date	 	Stock vesting on such date
	[DATE]

	 	[NUMBER OF SHARES]

Notwithstanding the foregoing, in the event that the Participant’s employment with the Company
terminates by reason of the Participant’s death or becoming “Totally Disabled”, or is terminated by
the Company without “Cause” or by the Participant for “Good Reason” (as each such term is

 

 

defined in the Employment Agreement), then the Restricted Stock shall automatically and immediately
vest and the effective date of such event shall be deemed a “Vesting Date”.

          5. Restrictions on Transferability of Unvested Shares. Until a share of Restricted
Stock vests, the Participant shall not transfer the Participant’s rights to such share of
Restricted Stock or to any rights related thereto. Any attempt to transfer unvested shares of
Restricted Stock or any rights related thereto, whether by transfer, pledge, hypothecation or
otherwise and whether voluntary or involuntary, by operation of law or otherwise, shall not vest
the transferee with any interest or right in or with respect to such shares of Restricted Stock or
such related rights.

          6. Termination of Service. In the event that the Participant’s employment with the
Company is terminated by the Company for “Cause” or by the Participant without “Good Reason” before
all the shares of Restricted Stock are vested, all unvested shares of Restricted Stock, together
with any property received in respect of such shares, as set forth in Section 10 hereof, shall be
forfeited as of the date Participant’s employment terminates, and the Participant promptly shall
return to the Company any certificates evidencing such shares, together with any cash dividends or
other property received in respect of such shares.

          7. Issuance of Certificates.

          (a) Reasonably promptly after the Grant Date, the Company shall issue stock certificates,
registered in the name of the Participant, evidencing the shares of Restricted Stock or shall
instruct its transfer agent to issue shares of Restricted Stock which shall be maintained in book
entry form on the books of the transfer agent. The Restricted Stock, if certificated, shall bear
the following legend:

“THE SALE, TRANSFER, ASSIGNMENT, PLEDGE, HYPOTHECATION ENCUMBRANCE OR OTHER DISPOSAL
OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE TERMS OF THE
SPECTRUM GROUP INTERNATIONAL, INC.’S 1997 STOCK INCENTIVE PLAN AND A RESTRICTED
STOCK GRANT AGREEMENT BETWEEN SPECTRUM GROUP INTERNATIONAL, INC. AND THE HOLDER OF
RECORD OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE. NO TRANSFER OF THE
SECURITIES REPRESENTED BY THIS CERTIFICATE IN CONTRAVENTION OF SUCH PLAN AND
RESTRICTED STOCK GRANT AGREEMENT SHALL BE VALID OR EFFECTIVE. COPIES OF SUCH
AGREEMENT MAY BE OBTAINED BY WRITTEN REQUEST MADE BY THE HOLDER OF RECORD OF THE
CERTIFICATE TO THE SECRETARY OF SPECTRUM GROUP INTERNATIONAL, INC.”

If the Restricted Stock is in book entry form, it shall be subject to electronic coding or stop
order indicating that such shares of Restricted Stock are restricted by the terms of this Agreement
and the Plan. Such legend, electronic coding or stop order shall not be removed until such shares
of Restricted Stock vest.

2

 

          (b) Each certificate issued pursuant to Section 7(a) hereof, together with the stock powers
relating to such shares of Restricted Stock, shall be held in escrow by the Company. The Company
shall issue to the Participant a receipt evidencing the certificates held by it which are
registered in the name of the Participant.

          (c) Reasonably promptly after the Restricted Stock vests pursuant to Section 4 hereof, (i) in
the case of certificated shares, in exchange for the surrender to the Company of the certificate
evidencing the Restricted Stock, delivered to the Participant under Section 7(a) hereof, and the
certificates evidencing any other securities received in respect of such shares, if any, the
Company shall issue and deliver to the Participant (or the Participant’s legal representative,
beneficiary or heir) a certificate evidencing the Restricted Stock and such other securities, free
of the legend provided in Section 7(a) hereof and (ii) in the case of book entry shares, the
Company shall cause to be lifted and removed any electronic coding or stop order established
pursuant to Section 7(a) hereof, provided that the Company may require that such legend, coding or
stop order remain to the extent it deems appropriate in light of the restrictions provided in
Section 9.

          (d) The Company may require as a condition of the delivery of stock certificates or the
lifting or removal of any electronic coding or stop order with respect to book entry shares
pursuant to Section 7(b) hereof that the Participant remit to the Company an amount sufficient in
the opinion of the Company to satisfy any federal, state and other governmental tax withholding
requirements related to the vesting of the shares represented by such certificate. The Board, in
its sole discretion, may permit the Participant to satisfy such obligation by delivering shares of
Common Stock or by directing the Company to withhold from delivery shares of Common Stock, in
either case valued at their Fair Market Value on the Vesting Date with fractional shares being
settled in cash.

          (e) The Participant shall not be deemed for any purpose to be, or have rights as, a
shareholder of the Company by virtue of the grant of Restricted Stock, except to the extent a stock
certificate is issued therefor or an appropriate book entry is made on the books of the transfer
agent reflecting the issuance thereof pursuant to Section 7(a) hereof, and then only from the date
such certificate is issued or such book entry is made. Upon the issuance of a stock certificate or
the making of an appropriate book entry on the books of the transfer agent, the Participant shall
have the rights of a shareholder with respect to the Restricted Stock, including the right to vote
the shares, subject to the restrictions on transferability and the forfeiture provisions, as set
forth in this Agreement.

          8. Representations, Warranties and Covenants of the Participant. The Participant
hereby represents and warrants to, and agrees with, the Company as follows:

          (a) (i) If Participant is a U.S. resident, then the Participant is an “Accredited Investor” as
that term is defined in Rule 501(a) of Regulation D promulgated under the Securities Act of 1933,
as amended (the “1933 Act”), and as specifically indicated in Exhibit A to this Agreement.

          (ii) If the Participant is not a U.S. resident, then the Participant is acquiring shares for
his own account and not for the account or benefit of any other person or entity, as specifically
indicated on Exhibit A to this Agreement.

3

 

          (b) The Participant understands that (i) the Restricted Stock has not been registered under
the 1933 Act by reason of specific exemptions from registration thereunder and under similar
exemptions under certain state securities laws; (ii) that this transaction has not been reviewed
by, passed on or submitted to any United States Federal or state agency or self-regulatory
organization where an exemption is being relied upon; (iii) that the Company’s reliance thereon is
based in part upon the representations made by the Participant in this Agreement; and (iv) that the
Restricted Stock must be held indefinitely, unless such Restricted Stock is subsequently registered
under the 1933 Act or the Participant obtains an opinion of counsel, in form and substance
satisfactory to the Company and its counsel, that such registration is not required. The
Participant further acknowledges and understands that unless otherwise agreed to between the
Participant and the Company, the Company is under no obligation to register the Restricted Stock.

          (c) The Participant is aware of the adoption of Rule 144 by the Securities and Exchange
Commission under the 1933 Act, which permits limited public resales of securities acquired in a
non-public offering, subject only to the satisfaction of certain conditions. The Participant
acknowledges and understands that the conditions for resale set forth in Rule 144 have not been
satisfied.

          (d) The Participant will not sell, transfer or otherwise dispose of the Restricted Stock in
violation of the 1933 Act, the Securities Exchange Act of 1934, as amended (the “1934 Act”), or the
rules promulgated thereunder, including Rule 144 under the 1933 Act. The Participant agrees that
he or she will not dispose of the Restricted Stock unless and until he or she has complied with all
requirements of this Agreement applicable to the disposition of Restricted Stock and he or she has
provided the Company with written assurances, in substance and form satisfactory to the Company,
that (A) the proposed disposition does not require registration of the Restricted Stock under the
1933 Act or all appropriate action necessary for compliance with the registration requirements of
the 1933 Act or with any exemption from registration available under the 1933 Act (including Rule
144) has been taken and (B) the proposed disposition will not result in the contravention of any
transfer restrictions applicable to the Restricted Stock under Delaware law.

          9. Securities Legend; Transfers. The Participant acknowledges that the Restricted
Stock (including any Common Stock issuable upon vesting of the Restricted Stock) will be subject to
a stop order, and any certificate or certificates evidencing any such shares shall bear the
following or a substantially similar legend and such other legends as may be required by state blue
sky laws:

“THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES
LAWS. SUCH SECURITIES MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED OR
OTHERWISE TRANSFERRED IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH
RESPECT TO SUCH SECURITIES UNDER THE SECURITIES ACT OR AN AVAILABLE EXEMPTION FROM
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. ANY SUCH TRANSFER MAY ALSO BE

4

 

SUBJECT TO COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS.”

     The Participant acknowledges that the Restricted Stock (including any Common Stock
issuable upon vesting of the Restricted Stock) may only be transferred in compliance with
the Company’s Insider Trading Policy and agrees that the Company may and generally will
prohibit transfer until such time as the Company is current in its reporting pursuant to
the 1934 Act.

          10. Dividends, etc. Unless the Board otherwise determines, any property, including
cash dividends, received by the Participant with respect to a share of Restricted Stock as a result
of any dividend, recapitalization, merger, consolidation, combination, exchange of shares or
otherwise, will not vest until such share of Restricted Stock vests, and shall be held in escrow by
the Company. The Company shall issue to the Participant a receipt evidencing the property held by
it in respect of the Restricted Stock. Any cash dividends or other property (but not including
securities) received by a Participant with respect to a share of Restricted Stock shall be returned
to the Company in the event such share of Restricted Stock is forfeited. Any securities received
by a Participant with respect to a share of Restricted Stock as a result of any dividend,
recapitalization, merger, consolidation, combination, exchange of shares or otherwise will not vest
until such share of Restricted Stock vests and shall be forfeited if such share of Restricted Stock
is forfeited. Unless the Board otherwise determines, such securities shall bear a legend or be
subject to an electronic coding or stop order, as set forth in Section 7(a) hereof.

          11. Delays or Omissions. No delay or omission to exercise any right, power or remedy
accruing to any party hereto upon any breach or default of any party under this Agreement, shall
impair any such right, power or remedy of such party, nor shall it be construed to be a waiver of
any such breach or default, or an acquiescence therein, or of or in any similar breach or default
thereafter occurring, nor shall any waiver of any single breach or default be deemed a waiver of
any other breach or default theretofore or thereafter occurring. Any waiver, permit, consent or
approval of any kind or character on the part of any party of any breach or default under this
Agreement, or any waiver on the part of any party or any provisions or conditions of this
Agreement, must be in a writing signed by such party and shall be effective only to the extent
specifically set forth in such writing.

          12. Right of Discharge Preserved. Nothing in this Agreement shall confer upon the
Participant the right to continue in the employ or other service of the Company, or affect any
right which the Company may have to terminate such employment or service.

          13. Integration. This Agreement contains the entire understanding of the parties with
respect to its subject matter. There are no restrictions, agreements, promises, representations,
warranties, covenants or undertakings with respect to the subject matter hereof other than those
expressly set forth herein. This Agreement, including, without limitation, the Plan, supersedes
all prior agreements and understandings between the parties with respect to its subject matter.

5

 

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

          15. Governing Law. This Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of New York, without regard to the provisions governing
conflict of laws.

          16. Obligation to Notify. If the Participant makes the election permitted under
Section 83(b) of the Internal Revenue Code of 1986, as amended (that is, an election to include in
gross income in the year of transfer the amounts specified in Section 83(b)), the Participant shall
notify the Company of such election within 10 days of filing notice of the election with the
Internal Revenue Service and shall within the same 10-day period remit to the Company an amount
sufficient in the opinion of the Company to satisfy any federal, state and other governmental tax
withholding requirements related to such inclusion in Participant’s income. The Participant should
consult with his or her tax advisor to determine the tax consequences of acquiring the Restricted
Stock and the advantages and disadvantages of filing the Section 83(b) election. The Participant
acknowledges that it is his or her sole responsibility, and not the Company’s, to file a timely
election under Section 83(b), even if the Participant requests the Company or its representatives
to make this filing on his or her behalf.

          17. Participant Acknowledgment. The Participant hereby acknowledges receipt of a copy
of the Plan. The Participant hereby acknowledges that all decisions, determinations and
interpretations of the Board in respect of the Plan, this Agreement and the Restricted Stock shall
be final and conclusive.

          IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed by its duly
authorized officer, and the Participant has hereunto signed this Agreement on his or her own
behalf, thereby representing that he or she has carefully read and understands this Agreement and
the Plan as of the day and year first written above.

	 	 	 	 	 
	 

	 	SPECTRUM GROUP INTERNATIONAL, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 
	 	 	 	 
	 	 	   
	 

	 	[EMPLOYEE]	 	 

6

 

EXHIBIT A

Spectrum Group International, Inc.

FOR U.S. RESIDENTS ONLY

Accredited Investor Status

Please indicate below whether, as of the Grant Date, you meet any of the following criteria
or, alternatively, whether you do not meet any of the following criteria (please check one):

___(i) A director or executive officer of the Company.

___(ii) A natural person whose individual net worth, or joint net worth with that person’s
spouse, exceeds $1,000,000.

___(iii) A natural person who had an individual income in excess of $200,000 in each of the
two most recent years or joint income with that person’s spouse in excess of $300,000 in each of
those years and has a reasonable expectation of reaching the same income level in the current year.

___(iv) I do not meet any of the criteria above.

	 	 	 	 	 	 	 
	 

	 	Signature:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Print Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Date:	 	 	 	 
	 

	 	 	 	 

	 	 

7

 

FOR NON-U.S. RESIDENTS ONLY

          1. I hereby certify that I am an individual who does not reside in the United States and am
not acquiring shares of Spectrum Group International, Inc. for the account or benefit of any other
person or entity.

          2. I agree not to engage in hedging transactions with regard to the Common Stock of Spectrum
Group International, Inc. unless in compliance with the Securities Act of 1933, as amended.

	 	 	 	 	 	 	 
	 

	 	Signature:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Print Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Date:	 	 	 	 
	 

	 	 	 	 

	 	 

8

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