Document:

Exhibit 10.23

 

DOMESTIC

PLEDGE AGREEMENT

 

THIS DOMESTIC PLEDGE AGREEMENT (as amended and modified from time to
time, this “Domestic Pledge Agreement”) dated as of
January 30, 2008 is by and among the parties identified as “Pledgors” on
the signature pages hereto and such other parties as may become Pledgors
hereunder after the date hereof (individually a “Pledgor”, and
collectively the “Pledgors”) and BANK OF AMERICA,
N.A., as collateral agent under the Intercreditor Agreement (defined below) (in
such capacity, the “Collateral Agent”)
for the holders of the Secured Obligations (defined below).

 

WITNESSETH

 

WHEREAS, pursuant to that certain Note Purchase Agreement, dated as of
the date hereof (as amended, modified or supplemented from time to time, the “2008 Note Agreement”), among the GFI Group, Inc. (the “Company”) and the institutional investors signatory thereto
(collectively, the “2008 Purchasers”),
the Company has issued and sold to the 2008 Purchasers $60,000,000 in aggregate
principal amount of the Company’s 7.17% Senior Notes due January 30, 2013
(together with all notes issued in substitution or exchange therefor or in
replacement thereof in accordance with the terms of the 2008 Note Agreement,
the “2008 Senior Notes”);

 

WHEREAS, in connection with the 2008 Note Agreement, certain Domestic
Subsidiaries (each, a “Subsidiary Guarantor”
and collectively, the “Subsidiary Guarantors”)
of the Company are executing and delivering to the 2008 Purchasers a Subsidiary
Guaranty Agreement, dated as of the date hereof, pursuant to which such
Domestic Subsidiaries guarantee to the 2008 Purchasers all of the Company’s
obligations under the Note Documents; and

 

WHEREAS, this Domestic Pledge Agreement is required under the terms of
the 2008 Note Agreement.

 

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

 

SECTION 1.                                                 DEFINITIONS.

 

                (a)       Capitalized terms used and not otherwise
defined herein shall have the meanings provided in the 2008 Note Agreement.

 

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

 

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

 

 

“Credit Agreement” means that certain Credit Agreement dated as of February 24,
2006 (as amended or modified from time to time) among the Company and GFI
Holdings Limited as the borrowers, the guarantors party thereto, the lenders
party thereto and Bank of America, N.A. as administrative agent for the
lenders.

 

“Debtor Relief Laws” means
the Bankruptcy Code of the United States of America, and all other liquidation,
conservatorship, bankruptcy, assignment for the benefit of creditors,
moratorium, rearrangement, receivership, insolvency, reorganization, or similar
debtor relief Laws of the United States of America or other applicable
jurisdictions from time to time in effect and affecting the rights of creditors
generally.

 

“Domestic Subsidiary”: any
Subsidiary of the Company organized under the laws of the United States of
America or any jurisdiction thereof.

 

“Foreign Subsidiary”: any
Subsidiary of the Company organized under the laws of a jurisdiction other than
the United States of America or any jurisdiction thereof.

 

“Intercreditor Agreement”  means that certain intercreditor
agreement dated as of the date hereof among the 2008 Purchasers, the Company,
the Collateral Agent, Bank of America, N.A. in its capacity as administrative
agent under the Credit Agreement and Subsidiary Guarantors party thereto.

 

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

 

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

 

“Secured Obligations” means, without duplication, (i) all of the
obligations of the Company and the Subsidiary Guarantors to the 2008 Purchasers
under the 2008 Note Agreement and the other Note Documents (including, but not
limited to, any interest accruing after the commencement by or against the
Company or any Subsidiary Guarantor of a proceeding under any Debtor Relief
Laws, regardless of whether such interest is an allowed claim under such
proceeding), whether now existing or hereafter arising, due or to become
due, direct or indirect, absolute or contingent, howsoever evidenced, created,
held or acquired, whether primary, secondary, direct, contingent, or joint and
several, as such obligations may be amended, modified, increased, extended,
renewed or replaced from time to time, and (ii) all costs and expenses
incurred in connection with enforcement and collection of the foregoing
obligations, including reasonable attorney’s fees.

 

“UCC” means the Uniform
Commercial Code.

 

SECTION 2.                                                 PLEDGE AND GRANT OF SECURITY INTEREST.

 

To secure the prompt payment and performance in full when due, whether
by lapse of time, acceleration, mandatory prepayment or otherwise, of the
Secured Obligations, each Pledgor hereby grants, pledges and assigns to the
Collateral Agent, for the benefit of the holders of the

 

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Secured Obligations, a continuing security interest in, any and all
right, title and interest of such Pledgor in and to the following, whether now
owned or existing or owned, acquired, or arising hereafter (collectively, the “Pledged Collateral”):

 

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

 

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

 

                   (B)        without affecting the obligations of the
Pledgors under any provision prohibiting such action hereunder or under the
2008 Note Agreement, in the event of any consolidation or merger involving the
issuer of any Pledged Shares and in which such issuer is not the surviving
entity, all Capital Stock of the successor entity formed by or resulting from
such consolidation or merger.

 

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

 

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

 

Without limiting the generality of the foregoing, it is hereby
specifically understood and agreed that a Pledgor may from time to time
hereafter deliver additional Capital Stock to the Collateral Agent as
collateral security for the Secured Obligations.  Upon delivery to the

 

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Collateral Agent, such additional Capital Stock shall be deemed to be
part of the Pledged Collateral of such Pledgor and shall be subject to the
terms of this Domestic Pledge Agreement whether or not Schedule 2(a) is
amended to refer to such additional Capital Stock.

 

SECTION 3.                                                 SECURITY FOR SECURED OBLIGATIONS.

 

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

 

SECTION 4.                                                 DELIVERY OF THE PLEDGED COLLATERAL.

 

Each Pledgor hereby agrees that:

 

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

 

                   (b)        Additional Securities.  If such Pledgor shall receive by virtue of
its being or having been the owner of any Pledged Collateral, any (i) certificate
or instrument, including without limitation, any certificate representing a
dividend or distribution in connection with any increase or reduction of
capital, reclassification, merger, consolidation, sale of assets, combination
of shares or other equity interests, stock splits, spin-off or split-off,
promissory notes or other instruments; (ii) option or right, whether as an
addition to, substitution for, or an exchange for, any Pledged Collateral or
otherwise; (iii) dividends payable in securities; or (iv) distributions
of securities in connection with a partial or total liquidation, dissolution or
reduction of capital, capital surplus or paid-in surplus, then such Pledgor
shall receive such certificate, instrument, option, right or distribution in
trust for the benefit of the Collateral Agent, shall segregate it from such
Pledgor’s other property and shall deliver it forthwith to the Collateral Agent
in the exact form received together with any necessary endorsement and/or
appropriate stock power duly executed in blank, substantially in the form
provided in Schedule 4(a), to be held by the Collateral Agent as Pledged
Collateral and as further collateral security for the Secured Obligations.

 

                   (c)        Financing Statements.  Each Pledgor authorizes the Collateral Agent
to file one or more financing statements (with
collateral descriptions broader, including without limitation “all
assets” and/or “all personal property” collateral descriptions, and/or less specific than the description of the
Collateral contained herein) disclosing the

 

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Collateral Agent’s security interest in the Pledged Collateral.  Each Pledgor agrees to execute and deliver to
the Collateral Agent such financing statements and other filings as may be
reasonably requested by the Collateral Agent in order to perfect and protect
the security interest created hereby in the Pledged Collateral of such Pledgor.

 

SECTION 5.                                                 REPRESENTATIONS AND WARRANTIES.

 

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

 

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

 

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

 

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

 

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

 

                   (e)        Security Interest/Priority.  This Domestic Pledge Agreement creates a
valid security interest in favor of the Collateral Agent for the benefit of the
holders of the Secured Obligations, in the Pledged Collateral of such
Pledgor.  The delivery to the Collateral
Agent of certificates evidencing the Pledged Collateral of such Pledgor,
together with duly executed stock powers in respect thereof, will perfect and
establish the first priority (subject to Liens permitted pursuant to the terms
of the Note Documents) of the Collateral Agent’s security interest in any
certificated Pledged Collateral of such Pledgor that constitutes a
Security.  The filing of appropriate UCC
financing statements in the appropriate filing offices in the jurisdiction of
organization of such Pledgor or obtaining “control” over such interests in
accordance with the provisions of Section

 

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

 

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

 

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

 

SECTION 6.                                                 COVENANTS.

 

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

 

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

 

                   (b)        Defense of Title.  Warrant and defend title to and ownership of
the Pledged Collateral of such Pledgor at its own expense against the claims
and demands of all other parties claiming an interest therein, keep such
Pledged Collateral free from all Liens, except for Liens permitted pursuant to
the terms of the Note Documents, and not sell, exchange, transfer, assign,
lease or otherwise dispose of Pledged Collateral of such Pledgor or any
interest therein, except as permitted under the 2008 Note Agreement and the
other Note Documents.

 

                   (c)        Further Assurances.  Promptly execute and deliver at its expense
all further instruments and documents and take all further action that may be
necessary or that the Collateral Agent may reasonably request in order to (i) perfect
and protect the security interest created hereby in the Pledged Collateral of
such Pledgor (including, without limitation, any and all action necessary to
satisfy the Collateral Agent that the

 

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Collateral Agent has obtained a first priority (subject to Liens
permitted pursuant to the terms of the Note Documents) perfected security
interest in such Pledged Collateral); (ii) enable the Collateral Agent to
exercise and enforce its rights and remedies hereunder in respect of the
Pledged Collateral of such Pledgor; and (iii) otherwise effect the
purposes of this Domestic Pledge Agreement, including, without limitation and
if requested by the Collateral Agent, delivering to the Collateral Agent
irrevocable proxies in respect of the Pledged Collateral of such Pledgor.

 

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

 

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

 

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

 

SECTION 7.                                                 ADVANCES BY HOLDERS OF THE SECURED
OBLIGATIONS.

 

On failure of any Pledgor to perform any of the covenants and
agreements contained herein, the Collateral Agent may, at its sole option and
in its sole discretion, upon notice to the Pledgors, perform the same and in so
doing may expend such sums as the Collateral Agent may reasonably deem
advisable in the performance thereof, including, without limitation, the
payment of any insurance premiums, the payment of any taxes, a payment to
obtain a release of a Lien or potential Lien (other than a Lien permitted
pursuant to the terms of the Note Documents), expenditures made in defending
against any adverse claim and all other expenditures that the Collateral Agent or
the holders of the Secured Obligations may make for the protection of the
security hereof or may be compelled to make by operation of law.  All such sums and amounts so expended shall
be repayable by the Pledgors on a joint and several basis (subject to Section 24
hereof) promptly upon timely notice thereof and demand therefor, shall
constitute additional Secured Obligations and shall bear interest from the date
said amounts are expended at the Default Rate. 
No such performance of any covenant or agreement by the Collateral Agent
or the holders of the Secured Obligations on behalf of any Pledgor, and no such
advance or expenditure therefor, shall relieve the Pledgors of any default
under the terms of this

 

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Domestic Pledge Agreement, the other Note Documents or any other
documents relating to the Secured Obligations. 
The holders of the Secured Obligations may make any payment hereby
authorized in accordance with any bill, statement or estimate procured from the
appropriate public office or holder of the claim to be discharged without
inquiry into the accuracy of such bill, statement or estimate or into the
validity of any tax assessment, sale, forfeiture, tax lien, title or claim
except to the extent such payment is being contested in good faith by a Pledgor
in appropriate proceedings and against which adequate reserves are being
maintained in accordance with GAAP.

 

SECTION 8.                                                 REMEDIES.

 

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

 

                (b)       Sale of Pledged Collateral.  Upon the occurrence of an Event of Default
and during the continuation thereof, without limiting the generality of this Section 8
and, except as provided below, without notice, the Collateral Agent may, in its
sole discretion, sell or otherwise dispose of or realize upon the Pledged
Collateral, or any part thereof, in one or more parcels, at public or private
sale, at any exchange or broker’s board or elsewhere, at such price or prices
and on such other terms as the Collateral Agent may deem commercially
reasonable, for cash, credit or for future delivery or otherwise in accordance
with applicable law.  To the extent
permitted by law, any holder of the Secured Obligations may in such event, bid
for the purchase of such securities. 
Each Pledgor agrees that, to the extent notice of sale shall be required
by law and has not been waived by such Pledgor, any requirement of reasonable
notice shall be met if notice, specifying the place of any public sale or the
time after which any private sale is to be made, is personally served on or
mailed, postage prepaid, to such Pledgor, in accordance with the notice
provisions of Section 18 of the 2008 Note Agreement at least ten days
before the time of such sale.  The
Collateral Agent shall not be obligated to make any sale of Pledged Collateral
of such Pledgor regardless of notice of sale having been given.  The Collateral Agent may adjourn any public
or private sale from time to time by announcement at the time and place fixed
therefor, and such sale may, without further notice, be made at the time and
place to which it was so adjourned.

 

                (c)       Private Sale.  Upon the occurrence of an Event of Default
and during the continuation thereof, the Pledgors recognize that the Collateral
Agent may deem it impracticable to effect a public sale of all or any part of
the Pledged Shares or any of the securities constituting Pledged Collateral and
that the Collateral Agent may, therefore, determine to make one or more private
sales of any such Pledged Collateral to a restricted group of purchasers who
will be obligated to agree, among other things, to acquire such Pledged
Collateral for their own account, for investment and not with a view to the
distribution or resale thereof.  Each
Pledgor acknowledges that any such private sale may be at prices and on terms
less favorable to the seller than the prices and other terms that might have
been obtained at a public sale and, notwithstanding the foregoing, agrees that
such private sale shall be deemed to have been made

 

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in a commercially reasonable manner and that the Collateral Agent shall
have no obligation to delay sale of any such Pledged Collateral for the period
of time necessary to permit the issuer of such Pledged Collateral to register
such Pledged Collateral for public sale under the Securities Act.  Each Pledgor further acknowledges and agrees
that any offer to sell such Pledged Collateral that has been (i) publicly
advertised on a bona fide basis in a newspaper or other publication of general
circulation in the financial community of New York, New York (to the extent
that such offer may be advertised without prior registration under the
Securities Act), or (ii) made privately in the manner described above
shall be deemed to involve a “public sale” under the UCC, notwithstanding that
such sale may not constitute a “public offering” under the Securities Act, and
the Collateral Agent may, in such event, bid for the purchase of such Pledged
Collateral.

 

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

 

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

 

SECTION 9.                                                 RIGHTS OF THE COLLATERAL AGENT.

 

                (a)       Power of Attorney.  In addition to other powers of attorney
contained herein, each Pledgor hereby designates and appoints the Collateral
Agent, on behalf of the holders of the Secured Obligations, and each of its
designees or agents, as attorney-in-fact of such Pledgor, irrevocably and with
power of substitution, with authority to take any or all of the following
actions upon the occurrence and during the continuation of an Event of Default:

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

This power of attorney is a power coupled with an interest and shall be
irrevocable for so long as any of the Secured Obligations shall remain
outstanding and until all of the commitments relating thereto shall have been
terminated.  The Collateral Agent shall
be under no duty to exercise or withhold the exercise of any of the rights,
powers, privileges and options expressly or implicitly granted to the
Collateral Agent in this Domestic Pledge Agreement, and shall not be liable for
any failure to do so or any delay in doing so. 
The Collateral Agent shall not be liable

 

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for any act or omission or for any error of judgment or any mistake of
fact or law in its individual capacity or its capacity as attorney-in-fact
except acts or omissions resulting from its gross negligence or willful
misconduct.  This power of attorney is
conferred on the Collateral Agent solely to protect, preserve and realize upon
its security interest in the Pledged Collateral.

 

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

 

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

 

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

 

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

 

                    (i)        To the extent permitted by law, each
Pledgor may exercise any and all voting and other consensual rights pertaining
to the Pledged Collateral of such Pledgor or any part thereof for any purpose
not inconsistent with the terms of this Domestic Pledge Agreement or the Note
Documents until (A) such time as an Event of Default shall have occurred
and be continuing and (B) the 2008 Purchasers have accelerated payment of
the Notes pursuant to the 2008 Note Agreement; and

 

                   (ii)        If an Event of Default has occurred and
is continuing and the 2008 Purchasers have accelerated payment of the Notes as
contemplated in subparagraph (e)(i) above, all rights of a Pledgor to
exercise the voting and other consensual rights that it would otherwise be
entitled to exercise pursuant to paragraph (i) of this subsection shall

 

11

 

cease during the existence of such Event of Default and all such rights
shall thereupon become vested in the Collateral Agent, which shall then during
the continuance of such Event of Default have the sole right to exercise such
voting and other consensual rights.

 

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

 

                    (i)        Subject to Section 4(b) hereof,
each Pledgor may receive and retain any and all dividends (other than stock
dividends and other dividends constituting Pledged Collateral addressed
hereinabove) or interest paid in respect of the Pledged Collateral to the
extent they are allowed under the Note Documents until (A) such time as an
Event of Default shall have occurred and be continuing and (B) the 2008
Purchasers have accelerated payment of the Notes pursuant to the 2008 Note
Agreement.

 

                   (ii)        If an Event of Default has occurred and
is continuing and the 2008 Purchasers have accelerated payment of the Notes as
contemplated in subparagraph (f)(i) above:

 

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

 

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

 

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

 

SECTION 10.                                           RIGHTS OF REQUIRED HOLDERS.

 

All rights of the Collateral Agent hereunder, if not exercised by the
Collateral Agent, may be exercised by the Required Holders.  If such rights are so exercised by the
Required Holders,

 

12

 

then the Required Holders shall have all of the rights, privileges and
indemnities afforded the Collateral Agent in the exercise of such rights.

 

SECTION 11.                                           APPLICATION OF PROCEEDS.

 

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

 

SECTION 12.                                           CONTINUING AGREEMENT.

 

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

 

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

 

SECTION 13.                                           AMENDMENTS AND WAIVERS.

 

This Domestic Pledge Agreement and the provisions hereof may not be
amended, waived, modified, changed, discharged or terminated except as set
forth in the Note Documents.

 

13

 

SECTION 14.                                           SUCCESSORS IN INTEREST.

 

This Domestic Pledge Agreement shall create a continuing security
interest in the Collateral and shall be binding upon each Pledgor, its
successors and assigns, and shall inure, together with the rights and remedies
of the Collateral Agent and the holders of the Secured Obligations hereunder,
to the benefit of the Collateral Agent and the holders of the Secured
Obligations and their successors and permitted assigns; provided,
however, that, except as provided in the Note Documents, none of the
Pledgors may assign its rights or delegate its duties hereunder without the
prior written consent of the Required Holders under the 2008 Note
Agreement.  To the fullest extent
permitted by law, each Pledgor hereby releases the Collateral Agent and each
holder of the Secured Obligations, and their respective successors and assigns,
and their respective officers, employees or agents from any liability for any
act or omission relating to this Domestic Pledge Agreement or the Collateral,
except for any liability arising from the gross negligence or willful
misconduct of the Collateral Agent or such holder, or their respective
officers, employees or agents.

 

SECTION 15.                                           NOTICES.

 

All notices required or permitted to be given under this Domestic
Pledge Agreement shall be given as provided in the Note Documents.

 

SECTION 16.                                           COUNTERPARTS.

 

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

 

SECTION 17.                                           HEADINGS.

 

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

 

SECTION 18.                                           GOVERNING LAW; SUBMISSION TO
JURISDICTION; VENUE.

 

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

 

                (b)       ANY LEGAL ACTION OR PROCEEDING WITH
RESPECT TO THIS DOMESTIC PLEDGE AGREEMENT OR ANY OTHER NOTE DOCUMENT MAY BE
BROUGHT IN THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK, NEW YORK OR
OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF SUCH STATE, AND BY EXECUTION
AND DELIVERY OF THIS DOMESTIC PLEDGE

 

14

 

AGREEMENT, EACH PLEDGOR AND THE COLLATERAL AGENT, ON BEHALF OF ITSELF
AND EACH 2008 PURCHASER, CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY,
TO THE NON-EXCLUSIVE JURISDICTION OF THOSE COURTS. EACH PLEDGOR AND THE
COLLATERAL AGENT, ON BEHALF OF ITSELF AND EACH 2008 PURCHASER, IRREVOCABLY
WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED
ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW
OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH
JURISDICTION IN RESPECT OF THIS DOMESTIC PLEDGE AGREEMENT OR ANY OTHER NOTE
DOCUMENT OR OTHER DOCUMENT RELATED THERETO. 
EACH PLEDGOR AND THE COLLATERAL AGENT, ON BEHALF OF ITSELF AND EACH 2008
PURCHASER, WAIVES PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER PROCESS,
WHICH MAY BE MADE BY ANY OTHER MEANS PERMITTED BY THE LAW OF SUCH STATE.

 

SECTION 19.                                           WAIVER OF RIGHT TO TRIAL BY JURY.

 

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

 

SECTION 20.                                           SEVERABILITY.

 

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

 

SECTION 21.                                           ENTIRETY.

 

This Domestic Pledge Agreement, the other Note Documents and the other
documents relating to the Secured Obligations
represent the entire agreement of the parties hereto and thereto, and
supersede all prior agreements and understandings, oral or written, if any,
including

 

15

 

any commitment letters or correspondence relating to the Note
Documents, any other documents relating to the Secured Obligations,  or the transactions contemplated herein
and therein.

 

SECTION 22.                                           SURVIVAL.

 

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

 

SECTION 23.                                           OTHER SECURITY.

 

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

 

SECTION 24.                                           JOINT AND SEVERAL OBLIGATIONS OF
PLEDGORS.

 

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

 

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

 

                (c)       Notwithstanding
any provision to the contrary contained herein, in any other of the Note
Documents or in any other documents relating to the Secured Obligations, the
obligations of each Subsidiary Guarantor under
the Subsidiary Guaranty, the other Note Documents and the documents relating to
the Secured Obligations shall be limited to an aggregate amount equal to
the

 

16

 

largest amount that would not render such obligations subject to
avoidance under Section 548 of the Bankruptcy Code or any comparable
provisions of any applicable state law.

 

[Signature Pages Follow]

 

17

 

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

 

18

 

	
  PLEDGORS:

  	
  GFI GROUP INC.,

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GFI GROUP LLC,

  
	
   

  	
  a New York limited liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GFINET INC.,

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GFI BROKERS LLC,

  
	
   

  	
  a Delaware limited liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  INTERACTIVE VENTURES LLC,

  
	
   

  	
  a Delaware limited liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

19

 

	
   

  	
  FENICS SOFTWARE INC.,

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  AMEREX BROKERS, LLC., a
                  
  limited

  liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

20

 

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

 

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

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	 

	
   

  	
  Title:

  	 

					

 

21

 

FORM OF IRREVOCABLE STOCK POWER

 

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

 

 

the
following shares of capital stock of                                         ,
a                         
                            :

 

	
  Number
  of Shares

  	
   

  	
  Certificate
  Number

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

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

 

	
   

  	
  [HOLDER]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

SCHEDULE 4(a)Exhibit 10.1

 

FIRST
AMENDMENT TO

ADMINISTRATIVE
SERVICES AGREEMENT

 

THIS FIRST AMENDMENT TO ADMINISTRATIVE SERVICES
AGREEMENT (this “First
Amendment”) dated this 1st day of December 2007 by and between
Allstate Life Insurance Company (“Allstate Life” or “ADMINISTRATOR”) and
Lincoln Benefit Life Company (“COMPANY”).

 

RECITALS

 

WHEREAS, ADMINISTRATOR and COMPANY entered into
that certain Administrative Services Agreement, dated as of October 1,
1996 (the “Agreement”); and

 

WHEREAS, ADMINISTRATOR and COMPANY desire to
make certain amendments to the Agreement as more particularly described herein.

 

AGREEMENT

 

NOW, THEREFORE, for good and valuable consideration and
for the mutual covenants set forth below, the parties hereto, intending legally
to be bound, hereby agree as follows:

 

1.                                       ADMINISTRATOR and COMPANY hereby agree to
delete the Paragraph of the Agreement titled “Fiscal Responsibility” and
replace it with the following:

 

Fiscal
Responsibility

Within thirty (30) days
after the end of each calendar quarter, COMPANY will submit to ADMINISTRATOR a
statement of the service fees payable to ADMINISTRATOR by COMPANY in the
preceding calendar quarter and any balance payable shall be paid within
forty-five (45) days following receipt of such statement by ADMINSTRATOR.

 

The statements rendered by the COMPANY concerning service fees
paid and/or payable, advances and indebtedness shall be conclusive, unless
within thirty (30) days following receipt of the statement the ADMINISTRATOR
notifies the COMPANY of a dispute regarding any transactions reported since the
last preceding report. If a policy on which the ADMINISTRATOR is receiving a
service fee shall lapse for any reason, no further service fee will be paid
unless the policy is reinstated solely by the efforts of the ADMINISTRATOR. The
COMPANY shall pay the ADMINISTRATOR in accordance with the Administrative Fee
Schedule, attached hereto and incorporated herein, for Applications/Policies
submitted by and attached hereto and incorporated herein, for Applications/Policies
submitted by and issued solely through Interactive 

 

 

Insurance Services. The Schedule of Fees is subject to change by
Lincoln Benefit Life, but any change shall not apply to business written prior
to the effective date of the change.

 

2.                                       Unless expressly modified by this First
Amendment, the terms and conditions of the Agreement remain unchanged and in
full force and effect.

 

3.                                       This First Amendment shall be binding on
the parties hereto, including their successors and assigns.

 

IN
WITNESS WHEREOF,
the parties hereto have executed this First Amendment as of the day and year
first set forth above.

 

 

 

ALLSTATE LIFE INSURANCE
COMPANY

 

	
  By:

  	
  /s/
  Samuel H. Pilch

  
	
  Name:

  	
  Samuel
  H. Pilch

  
	
  Title:

  	
  Group
  Vice President and Controller

  

 

 

 

LINCOLN BENEFIT LIFE
COMPANY

 

	
  By:

  	
  /s/
  Samuel H. Pilch

  
	
  Name:

  	
  Samuel
  H. Pilch

  
	
  Title:

  	
  Group
  Vice President and Controller

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