ESPEED INC
EMPLOYMENT AGREEMENT-KEVIN FOLEY
<DOCUMENT>
<TYPE>EX-10.31
<SEQUENCE>5
<FILENAME>file002.htm
<DESCRIPTION>EMPLOYMENT AGREEMENT-KEVIN FOLEY
<TEXT>
<HTML><HEAD><TITLE></TITLE></HEAD><BODY>


<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: right; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">
<b>EXHIBIT
10.31</b>
</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: center; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">EMPLOYMENT AGREEMENT</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">AGREEMENT, dated as of
April 23, 2004, by and between eSpeed, Inc., a Delaware corporation,
with offices at 135 E. 57th Street, New York, New York 10022, together
with its successors and assigns (collectively,
"eSpeed"), and Kevin Foley, residing at 55
East 86<sup>th</sup> Street, Apt. 15C, New York, New York, 10028
("<u>Employee</u>").</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">eSpeed and
Employee desire to enter into an employment agreement
("<u>Agreement</u>"), on the terms and
conditions set forth below, to provide for the employment of Employee
for the term herein specified. In consideration of the mutual
agreements set forth below, eSpeed and Employee therefore agree:</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">Section 1.&nbsp;&nbsp;&nbsp;&nbsp;<u>Employment and Term.</u>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">eSpeed hereby
agrees with Employee, and Employee hereby agrees to serve, on the terms
and conditions set forth in this Agreement, as the President of eSpeed
with the duties set forth in Section 2, for a term beginning on May 3,
2004 (the "Start Date") and ending December
31, 2006 (the "Term of Employment"), unless
earlier terminated as specified in Section 4 below. Nothing contained
in this paragraph shall limit eSpeed's right to terminate
Employee under Section 4.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">Section 2.&nbsp;&nbsp;&nbsp;&nbsp;<u>Duties.</u>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">Employee agrees that during the Term of Employment, Employee will
perform such duties and assignments relating to the business of eSpeed
and any entity whether now existing or hereafter arising that directly
or indirectly, through one or more intermediaries, controls or is
controlled by or under common control with eSpeed (each such entity, an
"Affiliate"), consistent with the title of
President, as the CEO of eSpeed shall direct. During the Term of
Employment, Employee shall, except during customary vacation periods
and periods of illness, devote all of Employee's business time,
attention and energies to the performance of Employee's duties
and to the business and affairs of eSpeed and to promoting the best
interests of eSpeed, and Employee shall not, either during or outside
of such normal business hours, directly or indirectly, engage in any
activity inimical to such best interests. eSpeed retains the right to
provide Employee with alternative work commensurate with the work
Employee may be asked to normally perform under this Agreement.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">Section 3.&nbsp;&nbsp;&nbsp;&nbsp;<u>Compensation During the Term of
Employment.</u>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">eSpeed shall pay to Employee compensation as
follows:</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">(a)&nbsp;&nbsp;&nbsp;&nbsp;Employee shall receive an annual base salary
of $900,000 per annum, payable semi-monthly in accordance with
eSpeed's then current payroll practices.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">(b)&nbsp;&nbsp;&nbsp;&nbsp;Employee
shall be entitled to a bonus of at least $600,000 for 2004 if the pre
tax operating earnings per share of eSpeed (in each case as customarily
reported by eSpeed) for the April 1-December 31 period in 2004 is at
least 10% higher than the pre tax operating earnings per share
for the same period in 2003. Employee shall have the opportunity to
earn an annual bonus for the 2004 fiscal year (less any amounts payable
pursuant to the preceding sentence) of up to 100% of
Employee's annual base salary, if the pre tax operating earnings
per share of eSpeed (in each case as customarily reported by eSpeed)
for the April 1-December 31 period in 2004 is at least 30%
higher than the pre tax operating earnings per share for the same
period in 2003, which amount shall be proportionately reduced in the
event of an earnings increase of less than 30%, subject to the
preceding sentence. This bonus is payable as soon as practicable
following the end of the fiscal year in accordance with eSpeed's
then current payroll practices, provided Employee has not given notice
of resignation or been terminated for Cause (as defined herein) on or
before such payment date, as the case may be. Except as provided in
this Agreement, the bonus opportunities pursuant to this paragraph (b)
will be pursuant to the terms of the eSpeed, Inc. 2003 Incentive Bonus
Compensation Plan.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">Employee shall be entitled to a bonus of at
least $600,000 for 2005 if the pre tax operating earnings per share of
eSpeed (in each case as customarily reported by eSpeed) for 2005 is at
least 10% </p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: pt; background-color: #ffffff">
higher than the pre tax operating earnings per
share for 2004. Employee shall be entitled to a bonus of at least
$600,000 for 2006 if the pre tax operating earnings per share of eSpeed
(in each case as customarily reported by eSpeed) for 2006 is at least
10% higher than the pre tax operating earnings per share for
2005. Each such bonus is payable as soon as practicable following the
end of the fiscal year in accordance with eSpeed's then current
payroll practices, provided Employee has not given notice of
resignation or been terminated for Cause (as defined herein) on or
before such payment date, as the case may be.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">(c)&nbsp;&nbsp;&nbsp;&nbsp;Employee
shall also receive on the Start Date, options to purchase 500,000
shares of Class A Common Stock of eSpeed in accordance with the terms
of the eSpeed, Inc. 1999 Long Term Incentive Plan, at an exercise price
per share equal to the closing price per share of Class A Common Stock
on the Start Date, and the award agreement for such option shall be
substantially in the form attached hereto as <u>Exhibit A</u>.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">(d)&nbsp;&nbsp;&nbsp;&nbsp;Employee shall be entitled each year to participate in such
employee benefit plans and programs as eSpeed may from time to time
offer to employees of eSpeed. Employee will also be entitled to a
vacation or vacations in accordance with the policies of eSpeed for
employees at his level as determined by the management of eSpeed from
time to time. eSpeed shall not pay Employee any additional compensation
for any vacation time not used by Employee, other than as required by
law.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">(e)&nbsp;&nbsp;&nbsp;&nbsp;All compensation shall be subject to withholding
and other applicable taxes. Employee further agrees (i) that any sums
owed (or owing in the future) to eSpeed (or any Affiliate) by Employee
may be deducted from Employee's paychecks (or any bonus checks)
in amounts that are in accordance with applicable law and (ii) that any
sums owed to American Express and Employee's American Express
Corporate Charge Card that are 90 days past due for payment may be
deducted by eSpeed from Employee's paycheck (or any bonus checks)
in amounts that are in accordance with applicable law and make payments
to American Express on Employee's behalf and (iii) that any sums
owed to American Express and Employee's American Express
Corporate Charge Card upon the termination of Employee's
employment (for whatever reason) may be deducted by eSpeed from any
outstanding paycheck in amounts that are in accordance with applicable
law and make payments to American Express on Employee's
behalf.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">(f)&nbsp;&nbsp;&nbsp;&nbsp;Employee agrees that any unauthorized or excess
travel and entertainment expenses, as reasonably determined by eSpeed
in accordance with its then current practices, may be offset against
Employee's bonus payment or salary, at eSpeed's
discretion.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">(g)&nbsp;&nbsp;&nbsp;&nbsp;All bonuses shall be earned and payable
only if Employee is employed by eSpeed or an Affiliate at the time
payment is made (except termination of Employee without Cause);
provided, however, that bonus payments payable with respect to 2006, if
any, shall be earned and payable if Employee is employed by eSpeed or
an Affiliate on December 31, 2006. Employee agrees that any
compensation paid to Employee subsequent to the termination of
Employee's employment with eSpeed (except termination of Employee
without Cause) shall only be paid upon execution by Employee of a
general unconditional release in favor of eSpeed in a form satisfactory
to eSpeed.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">Section 4.&nbsp;&nbsp;&nbsp;&nbsp;<u>Termination.</u>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">(a)&nbsp;&nbsp;&nbsp;&nbsp;During the Term of Employment, eSpeed may terminate this
Agreement with Employee for Cause and notice of such termination shall
be sent to Employee. For the purposes hereof,
"<u>Cause</u>" means Employee's (i)
nonperformance or breach by Employee of any of the provisions of
Sections 5(a) and 5(c) of this Agreement (and with respect to any of
the provisions of Sections 5(b) and 5(d) only nonperformance or breach
by Employee which shall be material or not inadvertent), and with
respect to provisions of this Agreement other than those contained in
Section 5, material nonperformance or breach by Employee, (ii)
conviction of a crime under U.S. Federal, state or local laws or any
applicable foreign laws (including any pleas of <font style="font-weight: normal; font-style: italic">nolo
contendere</font>), (iii) serious misconduct in connection with or
affecting the business of eSpeed or any Affiliate, (iv) serious neglect
or gross negligence in performing Employee's duties hereunder,
(v) refusal to materially perform Employee's duties hereunder
after delivery to Employee by eSpeed or an entity owned or controlled
by eSpeed of written notice identifying the duties not being performed
by Employee, which failure may include the </p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">2</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: pt; background-color: #ffffff">
loss for a period of thirty (30) days during
any calendar year of any regulatory approvals or licenses necessary to
perform Employee's duties, (vi) violation by Employee or Employee
aiding and abetting any violation by another, of any law, order, rule
or regulation pertaining to Employee, or eSpeed or its affiliates
including, among others, the rules, regulations and by laws of the
National Association of Securities Dealers and the New York Stock
Exchange, (vii) illegal drug use by Employee, or (viii) serious
misconduct in connection with a request for reimbursement of expenses
not actually incurred by Employee and/or not in accordance with
eSpeed's travel and entertainment policy, or assisting others in
such efforts.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">(b)&nbsp;&nbsp;&nbsp;&nbsp;If during the Term of Employment, by
reason of physical or mental disability, Employee is incapable of
performing the essential functions of his position, with or without
reasonable accommodation for a period of 60 out of 180 consecutive
days, eSpeed at its option may thereafter terminate this Agreement with
Employee and notice of such termination may be sent to Employee. Salary
of Employee during any period of disability shall be in accordance with
the then-current policy of eSpeed. If Employee shall die during the
Term of Employment, the Term of Employment shall automatically
terminate; in the event of such death, or if eSpeed terminates the Term
of Employment pursuant to this Section, eSpeed shall pay to Employee or
to Employee's legal representatives, or in accordance with a
direction given by Employee to eSpeed in writing, Employee's
compensation to the date on which such death or termination for
disability occurs.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">(c)&nbsp;&nbsp;&nbsp;&nbsp;In the event eSpeed notifies
Employee of eSpeed's election to terminate this Agreement with
Employee, such termination shall become effective (i) if mailed, three
(3) days after mailing of notice thereof to Employee or (ii) if
delivered by hand, upon delivery.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">(d)&nbsp;&nbsp;&nbsp;&nbsp;In the event Employee
is terminated for Cause or because of disability, he will resign from
any officer and/or director positions he may hold.</p>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="69"></td>
<td><img src="spacer.gif" height="1" width="533"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: 0pt; text-align: left;  font-style: normal; width: 51.96pt">Section
5.&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 404pt"><u>Non-Competition;
Non-Disclosure;<br>Non-Solicitation; Non-Disparagement</u></td>
</tr>
</table>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">(a)&nbsp;&nbsp;&nbsp;&nbsp;During the Term of Employment, Employee shall not, alone or
with others, directly or indirectly, participate, engage, render
services to or become interested in (as owner, stockholder, partner,
lender or other investor, director, officer, employee, consultant or
otherwise) any business activity that is in competition with, or
otherwise related to or arises from, the then current or contemplated
business of eSpeed or any Affiliate. Notwithstanding any other
provisions herein, nothing in this Agreement shall prohibit Employee
from acquiring or owning in accordance with eSpeed's policies and
procedures regarding personal securities transactions, less than
1% of the outstanding securities of any class of any corporation
that are listed on a national securities exchange or traded in the
over-the-counter market.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">(b)&nbsp;&nbsp;&nbsp;&nbsp;Employee acknowledges that
during the Term of Employment he will have access to and become
acquainted with eSpeed's confidential records. Employee hereby
covenants and agrees that during the Term of Employment and thereafter,
Employee shall keep strictly confidential all information which
Employee presently possesses or which Employee may obtain during the
course of Employee's employment or any consulting arrangement
with eSpeed with respect to its client information, trade secrets,
copyrights, patents, trademarks, service marks, source code, business
practices, finances, developments, affairs, records, data, formulae,
documents, intangible rights, other intellectual property and other
confidential information (collectively, "Confidential
Information") of eSpeed or any Affiliate, or information
about eSpeed or any Affiliate not generally known to the public and not
disclose the same, directly or indirectly, to any other person, firm or
corporation or utilize the same, except solely in the course of
performing his duties on behalf of eSpeed and its Affiliates pursuant
to this Agreement. All Confidential Information relating to the
business of eSpeed and its Affiliates which Employee shall develop,
conceive, produce, prepare, use, construct or observe during the Term
of Employment shall be and remain the sole property of eSpeed or the
relevant Affiliate. Employee further agrees that upon the termination
of Employee's employment (irrespective of the time, manner or
cause of termination), Employee will surrender and deliver to eSpeed
all Confidential Information, including but not limited to work papers,
memoranda, lists, books, records and data of every kind, as well as any
copies thereof, relating to or in connection with eSpeed's and
its </p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">3</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: pt; background-color: #ffffff">
Affiliates' Confidential Information and
business. It is understood that Employee may be required to disclose
Confidential Information pursuant to subpoena, other court process, at
the direction of governmental or self-regulatory agencies (including
the National Association of Securities Dealers, Inc. or the Securities
and Exchange Commission) or otherwise as required by law.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">(c)&nbsp;&nbsp;&nbsp;&nbsp;During the Term of Employment and for a period of three (3)
years after the termination of his employment, for any reason
whatsoever, Employee shall not, alone, or with others, directly or
indirectly, solicit, hire or retain for Employee's benefit or the
benefit of any person or organization other than eSpeed and its
Affiliates, the employment or other services of any individual employed
by eSpeed or any Affiliate or serving as a consultant or independent
contractor at the time of such termination or within six months prior
thereto.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">(d)&nbsp;&nbsp;&nbsp;&nbsp;Employee recognizes that he is being placed in
a position of trust and confidence and as such will not during the Term
of Employment or thereafter defame, disparage, libel or slander eSpeed
or its Affiliates in any way, nor will eSpeed or its Affiliates defame,
disparage (except for any statements made pursuant to law or
regulation, including Regulation FD), libel or slander Employee, and
Employee will not during the Term of Employment or thereafter contact,
respond to any request from or in any way discuss, criticize, defame,
disparage, libel or slander eSpeed or its Affiliates, employees, agent
to the media (print, television, or otherwise, whether on or off the
record). This provision will not prohibit Employee from making
statements to the media if authorized by eSpeed and pursuant to eSpeed
company policy. It is expected that Employee will, in the ordinary
course of business, be expected to communicate with the media regarding
eSpeed's business.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">Section 6.&nbsp;&nbsp;&nbsp;&nbsp;<u>Other Employee
Obligations.</u>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">(a)&nbsp;&nbsp;&nbsp;&nbsp;In order to retain and enhance
eSpeed's standing and integrity at the forefront of the business
community, the business conduct of Employee must be totally
professional and Employee must at all times observe appropriate
standards of politeness and courtesy in Employee's behavior both
with the public and with colleagues. Employee is required to well and
faithfully serve eSpeed and to the best of Employee's ability use
Employee's best endeavors at all times to promote the development
of eSpeed's business and reputation.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">(b)&nbsp;&nbsp;&nbsp;&nbsp;Employee
must maintain the highest standards of honesty and fair dealing in
Employee's work for eSpeed and any Affiliate. Great importance is
attached to the observance of eSpeed's policies and procedures as
expressed in any personnel or compliance manual, all Federal and State
laws and regulations (or if applicable, those of a foreign
jurisdiction) and the rules of the National Association of Securities
Dealers, Inc. or any other applicable self-regulatory organization.
Material breach of any of these obligations may be regarded as
misconduct and may result in summary dismissal for Cause.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">(c)&nbsp;&nbsp;&nbsp;&nbsp;If at any time during his employment with eSpeed Employee
is, directly or indirectly, approached or solicited by a third party,
with a view to or with the intention of taking up employment or
entering into some other business relationship, whether directly or
indirectly, with that of any other party which is involved in a
business which is competitive with the current or then contemplated
business of eSpeed or any Affiliate, as known to Employee, Employee
shall disclose that fact immediately in writing to the CEO of eSpeed.
Moreover, during the Term of Employment and any extensions of
employment, Employee shall not, directly or indirectly, solicit,
encourage the solicitation of, or discuss employment or entering into a
business relationship, whether directly or indirectly with a party
which is involved in a business which is competitive with the current
or then contemplated business of eSpeed or any Affiliate, as known to
Employee.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">(d)&nbsp;&nbsp;&nbsp;&nbsp;During the Term of Employment and any
extensions thereof, Employee shall not, without the written consent of
eSpeed, enter into an agreement, whether oral, written or otherwise,
with any person, firm or corporation providing for Employee's
future employment by such or any other person, firm or corporation.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">Section 7.&nbsp;&nbsp;&nbsp;&nbsp;<u>Injunctive Relief</u>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">The parties
acknowledge that in the event of a breach or a threatened breach by
Employee of any of Employee's obligations under this Agreement,
eSpeed and its Affiliates will not have an </p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">4</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: pt; background-color: #ffffff">
adequate remedy at law. Accordingly, and
notwithstanding Section 8 hereof, in the event of any such breach or
threatened breach by Employee, eSpeed and its Affiliates shall be
entitled to specific performance of this Agreement or such equitable
and injunctive relief, without proof of special damages or the posting
of any bond or other security, as may be available to restrain Employee
and any business, firm, partnership, individual, corporation or entity
participating in such breach or threatened breach from the violation of
the provisions hereof. eSpeed and its Affiliates will be entitled to
seek such relief, without the posting of any bond or other security, in
court pursuant to Section 7502(c) of the New York Civil Practice Law
and Rules, or any successor provision thereto. Nothing herein shall be
construed as prohibiting eSpeed or any Affiliate from pursuing any
other remedies available at law or in equity for such breach or
threatened breach in any dispute submitted to arbitration under Section
8 hereof.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">Section 8.&nbsp;&nbsp;&nbsp;&nbsp;<u>Arbitration.</u>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">Subject
to the provisions of Section 7, any disputes, differences or
controversies arising under this Agreement shall be settled and finally
determined by arbitration before a panel of three arbitrators in New
York, New York, according to the rules of the National Association of
Securities Dealers, Inc. (or the American Arbitration Association or
any other alternative dispute resolution organization) now in force and
hereafter adopted and the laws of the state of New York then in effect.
The arbitrators shall make their award in accordance with and based
upon all provisions of this Agreement and judgment upon any award
rendered by the arbitrators shall be entered in any court having
jurisdiction thereof. However, it is understood and agreed that the
arbitrators are not authorized or entitled to include as part of any
award rendered by them, special, exemplary or punitive damages or
amounts in the nature of special, exemplary or punitive damages
regardless of the nature or form of the claim or grievance that has
been submitted to arbitration.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">It is expressly agreed that
arbitration as provided herein shall be the exclusive means for
determination of all matters arising in connection with this Agreement
and neither party hereto shall institute any action or proceeding in
any court of law or equity other than: (a) to request enforcement of
the arbitrators award hereunder; or (b) by eSpeed to bring an action or
proceeding seeking injunctive relief from a court of competent
jurisdiction as set forth in paragraph 7. The foregoing sentence shall
be a bona fide defense to any action or proceeding instituted contrary
to this Agreement.</p>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="98"></td>
<td><img src="spacer.gif" height="1" width="504"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: 20pt; text-align: left;  font-style: normal; width: 74.04pt">Section 9.&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 382pt"><u>Entire
Agreement; Enforceability;<br>Partial Invalidity, Attorneys'
Fees.</u></td>
</tr>
</table>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">This Agreement contains the entire agreement of the
parties with respect to the subject matter hereof and no modification
or waiver of any provision hereof will be binding upon any party unless
in writing and signed by the parties hereto.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">The invalidity or
unenforceability of any particular provision of this Agreement shall
not affect the other provisions and this Agreement shall be construed
in all respects as if such invalid or unenforceable provisions were
omitted. In the event that a court of competent jurisdiction shall
determine that any covenant set forth in this Agreement is
impermissibly broad in scope, duration or geographical area, or is in
the nature of a penalty, then the parties intend that such court should
limit the scope, duration or geographical area of such covenant to the
extent, and only to the extent, necessary to render such covenant
reasonable and enforceable, and enforce the covenant as so limited.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">The parties agree that if Employee brings an action, claim or
proceeding against eSpeed, any Affiliate, or any partner, stockholder,
officer, director or employee of any of them, that relates to or
implicates this Agreement, whether as to its breach, validity, efficacy
or otherwise, the non-prevailing party shall pay the reasonable
attorney's fees of the prevailing party.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">5</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">Section
10.&nbsp;&nbsp;&nbsp;&nbsp;<u>Miscellaneous.</u>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">This Agreement:</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">(a)&nbsp;&nbsp;&nbsp;&nbsp;shall be binding upon and inure to the benefit of the
parties hereto and their respective successors, permitted assigns,
heirs, executors and administrators. No waiver or modification shall be
deemed to be a subsequent waiver or modification of the same or any
other term, covenant or condition in this Agreement;</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">(b)&nbsp;&nbsp;&nbsp;&nbsp;may not be assigned, in whole or in part, by either party
hereto without the prior written consent of the other party (any
purported assignment hereof in violation of this provision being null
and void); however, it may be assigned without recourse, in whole or in
part by eSpeed to any Affiliate or to any successor in interest of
eSpeed or any Affiliate by merger, consolidation, reorganization or
otherwise, and may be executed in various counterparts, each of which
shall be deemed an original, but all of which together shall constitute
one and the same instrument, and shall be governed by and construed in
accordance with the laws of the State of New York, without giving
effect to the principles of conflicts of laws thereof. Employee hereby
waives personal service of process, and irrevocably submits to service
of process by mail; and</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">(c)&nbsp;&nbsp;&nbsp;&nbsp;shall be effective only when
executed both by eSpeed and Employee and upon such shall be binding and
enforceable; the Agreement in unsigned form does not become an offer of
any kind and does not become capable of acceptance until executed by
Employee, and at such time, the Agreement is capable of acceptance by
signature by an official at eSpeed; and</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">(d)&nbsp;&nbsp;&nbsp;&nbsp;may be executed
in one or more counterparts, all of which together shall constitute but
one Agreement.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">Section 11.&nbsp;&nbsp;&nbsp;&nbsp;<u>Notices.</u>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">All
notices pursuant to this Agreement shall be in writing, shall either be
delivered by hand or mailed by certified or registered mail, return
receipt requested, postage prepaid to the address set forth above or to
such other address as may be designated for such purpose in written
notice and shall be effective upon receipt when delivered by hand or on
the third business day after the day on which mailed. Any notice to
eSpeed hereunder will similarly be sent to:</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:48pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Stephen
Merkel, Esq.<br> Executive Vice President and<br> General
Counsel<br> ESpeed, Inc.<br> 135 East 57<sup>th</sup> Street<br> New
York, New York 10022<br> (212) 829-4829</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">Section 12.&nbsp;&nbsp;&nbsp;&nbsp;<u>No
Conflicts.</u>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">Employee represents and warrants that Employee
is not in default under, or in breach of, any agreement requiring
Employee to preserve the confidentiality of any information, client
lists, trade secrets or other confidential information or agreements
not to compete or interfere with any prior employer including, but not
limited to, any employment agreement; and neither the execution and
delivery of this agreement nor the performance by Employee of
Employee's obligations hereunder will conflict with, result in a
breach of, or constitute a default under, any confidentiality or
non-competition agreement or any employment agreement to which Employee
is a party or to which Employee may be subject.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">6</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">IN WITNESS WHEREOF, the parties hereto have
executed this Agreement as of the day and year first above
written.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:12pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">WITNESS</p>
<!--0--><table border="0" cellpadding="0" cellspacing="0" width="602">
<tr>
<td><img src="spacer.gif" width="1" height="24"></td>
</tr>
<tr>
<td bgcolor="#000000"><img src="spacer.gif" height="1"><img src="spacer.gif" height="1" width="1216"></td>
<td><img src="spacer.gif" height="1" width="-614"></td>
</tr>
<tr>
<td><img src="spacer.gif" height="8" width="1"></td>
</tr>
</table>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Name:</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:24pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">WITNESS</p>
<!--0--><table border="0" cellpadding="0" cellspacing="0" width="602">
<tr>
<td><img src="spacer.gif" width="1" height="24"></td>
</tr>
<tr>
<td bgcolor="#000000"><img src="spacer.gif" height="1"><img src="spacer.gif" height="1" width="1216"></td>
<td><img src="spacer.gif" height="1" width="-614"></td>
</tr>
<tr>
<td><img src="spacer.gif" height="8" width="1"></td>
</tr>
</table>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Name:</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:14pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">eSPEED,
INC.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:12pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">By:&nbsp;&nbsp;&nbsp;/s/ Howard W.
Lutnick</p>
<!--0--><table border="0" cellpadding="0" cellspacing="0" width="602">
<tr>
<td><img src="spacer.gif" width="1" height="1"></td>
</tr>
<tr>
<td bgcolor="#000000"><img src="spacer.gif" height="1"><img src="spacer.gif" height="1" width="1216"></td>
<td><img src="spacer.gif" height="1" width="-614"></td>
</tr>
<tr>
<td><img src="spacer.gif" height="8" width="1"></td>
</tr>
</table>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Name: Howard W.
Lutnick<br>Title: Chairman, CEO</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:38.04pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">By:&nbsp;&nbsp;&nbsp;/s/&nbsp;&nbsp;&nbsp;Kevin
Foley</p>
<!--0--><table border="0" cellpadding="0" cellspacing="0" width="602">
<tr>
<td><img src="spacer.gif" width="1" height="1"></td>
</tr>
<tr>
<td bgcolor="#000000"><img src="spacer.gif" height="1"><img src="spacer.gif" height="1" width="1216"></td>
<td><img src="spacer.gif" height="1" width="-614"></td>
</tr>
<tr>
<td><img src="spacer.gif" height="8" width="1"></td>
</tr>
</table>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Kevin
Foley</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">7</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>



</BODY></HTML>

</TEXT>
</DOCUMENT>
