ESPD Espeed (MM)

ITEM 5.02: DEPARTURE OF DIRECTORS OR PRINCIPAL OFFICERS; ELECTION OF DIRECTORS; APPOINTMENT OF PRINCIPAL OFFICERS

On January 23, 2008, Paul Saltzman resigned as Chief Operating Officer, of eSpeed, Inc. (the “Registrant”). In connection with his resignation, Mr. Saltzman entered into an employment separation agreement with the Registrant in which (i) he agreed to provide consulting services to the Registrant over a three year period for total cash compensation of $2.1 million provided he complies with certain affirmative and restrictive covenants; (ii) Mr. Saltzman’s 7,239 Restricted Stock Units issued in December 2007 will be immediately vested; (iii) his December 2004 option to purchase 150,000 shares of Class A common stock of the Registrant at an exercise price of $11.47 per share will be extended to expire on the termination date of his consulting period; and (iv) Mr. Saltzman will receive an additional RSU grant having a value of $100,000 on the third anniversary of his termination date in the event that he has complied with all of his obligations under the foregoing agreement.