EXHIBIT 10.2
SECOND AMENDMENT
TO THE
EMPLOYMENT AGREEMENT
WHEREAS, LADENBURG XXXXXXXX FINANCIAL SERVICES INC. (f/k/a GBI Capital
Management Corp.) (the "Parent"), a Florida corporation, GBI CAPITAL PARTNERS
INC. (formerly known as Xxxxxx, Xxxxxxx Inc.) (the "Company"), a New York
corporation and wholly-owned subsidiary of the Parent, and XXXXXXX X. XXXXXXXXXX
(the "Executive") have entered into an employment agreement (the "Agreement"),
dated August 24, 1999, a first amendment to the Agreement (the "First
Amendment"), dated as of February 8, 2001, and a letter amendment (the "Letter
Amendment," and together with the Agreement and First Amendment, the "Amended
Agreement"), dated as of February 8, 2001;
WHEREAS, the Company and the Executive desire to amend the Amended
Agreement;
WHEREAS, Section 13 of the Agreement provides that no modification of
or addition to the Agreement or waiver or cancellation of any provision therein
shall be valid except by a signed writing;
NOW THEREFORE, in consideration of the promises and mutual
representations, covenants and agreements set forth herein, and for other good
and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto agree to amend the Amended Agreement as follows
(capitalized terms used herein and that are defined in the Agreement and/or the
First Amendment shall have the same meanings herein as in the Agreement and/or
the First Amendment, respectively):
1. Effective August 1, 2001, the Executive's annual salary, as
set forth in Section 1 of the First Amendment, is hereby
amended to Three Hundred Forty Thousand Dollars ($340,000).
2. Effective August 1, 2001, the Executive shall no longer be
entitled to the Guaranteed Bonus, as set forth in Section 1 of
the First Amendment.
3. Commencing August 1, 2001, the Executive shall be entitled to
receive 0.25% of all retail and institutional brokerage
commissions generated from the Company's Covered Offices. As
used herein, "Covered Offices" shall mean the Company's
offices located in Bethpage, New York and New York, New York
(Cortlandt Street). Additionally, if at any time during the
term of the Amended Agreement, (i) any individual whose name
is set forth on Exhibit A hereto ceases, for any reason, to
work at a Covered Office in order to begin working at another
affiliate office of the Parent, Ladenburg Xxxxxxxx & Co. Inc.
or the Company (collectively, the "Affiliate Offices"), the
Executive shall continue be entitled to receive 0.25% of all
retail and institutional brokerage commissions generated by
such individual at such individual's new office, and (ii) any
individual, (other than those persons who previously worked at
a Covered Office whose names are set forth on Exhibit B)
ceases, for any reason, to work at an Affiliate Office in
order to begin working at a Covered Office, the Executive
shall not be entitled to receive any of the commissions
generated by such individual at a Covered Office. All sums
required to be paid to the Executive pursuant to this
Paragraph 3 shall be paid to Executive on a monthly basis.
4. From August 1, 2001 through September 30, 2001, the Executive
shall receive the percentage set forth on Exhibit C hereto of
Total Revenue (as defined below) of the Parent. Commencing on
October 1, 2001, the Executive shall be entitled to
participate in the Incentive Plan; provided, however, that
the Executive's participation in the Incentive Plan may be
limited by the Compensation Committee so that the Executive
may not receive in excess of the percentage set forth on
Exhibit C hereto of Total Revenue per year under the Incentive
Plan. As used herein, "Total Revenue" for any fiscal year
means the Parent's total consolidated revenues, as reported in
the Parent's audited consolidated financial statements for the
year.
During the term of the Agreement, Reason shall be deemed to
exist under the Agreement if after September 30, 2001, the
Incentive Plan is amended in any manner adverse to the
Executive (including without limitation any change in the
performance criteria or the computation of the Override) or
the Compensation Committee fails during any year to award the
Executive, upon satisfaction of the performance criteria in
the Incentive Plan, the percentage set forth on Exhibit C
hereto of Total Revenue; provided, however, that Executive
agrees that the Compensation Committee may amend the Incentive
Plan in order to change the Incentive Plan's "Year" from a
fiscal year ending September 30 to a fiscal year ending
December 31 in order to align the Plan's "Year" with that of
the Parent's fiscal year end.
5. Except as otherwise amended as hereinabove provided, the
Amended Agreement shall remain in full force and effect.
IN WITNESS WHEREOF, the parties have duly executed this Second
Amendment to the Amended Agreement as of August 31, 2001.
LADENBURG XXXXXXXX FINANCIAL SERVICES INC. GBI CAPITAL PARTNERS INC.
/s/ Xxxxxx X. Xxxxx /s/ Xxxx Xxxxxxxxx
By: _______________________________ By: _______________________________
Name: Xxxxxx X. Xxxxx Name: Xxxx Zeitcheck
Title: CEO Title: Executive Vice President
/s/ Xxxxxxx X. Xxxxxxxxxx
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XXXXXXX X. XXXXXXXXXX,
EXECUTIVE
