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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark one)
     
þ   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2009
OR
     
o   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from       to
Commission file number 001-32147
Greenhill & Co., Inc.
(Exact name of registrant as specified in its charter)
     
Delaware
(State of Incorporation)
  51-0500737
(I.R.S. Employer Identification No.)
     
300 Park Avenue
New York, New York

(Address of principal executive offices)
 
10022
(Zip Code)
Registrant’s telephone number (212) 389-1500
          Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No o
          Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes þ No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):
             
Large accelerated filer þ   Accelerated filer o   Non-accelerated filer o   Smaller reporting company o
        (Do not check if a smaller reporting company)    
          Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act). Yes o No þ
          As of May 1, 2009, there were 28,128,425 shares of the registrant’s common stock outstanding.
 
 

 


 

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Exhibits
       
  EX-10.44
  EX-10.45
  EX-10.46
  EX-10.47
  EX-31.1
  EX-31.2
  EX-31.3
  EX-32.1
  EX-32.2
  EX-32.3

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AVAILABLE INFORMATION
          Greenhill & Co., Inc. files current, annual and quarterly reports, proxy statements and other information required by the Securities Exchange Act of 1934, as amended (the ''Exchange Act’’), with the SEC. You may read and copy any document we file at the SEC’s public reference room located at 100 F Street, N.E., Washington, D.C. 20549, U.S.A. Please call the SEC at 1-800-SEC-0330 for further information on the public reference room. Our SEC filings are also available to the public from the SEC’s internet site at http://www.sec.gov. Copies of these reports, proxy statements and other information can also be inspected at the offices of the New York Stock Exchange, Inc., 20 Broad Street, New York, New York 10005, U.S.A.
          Our public internet site is http://www.greenhill.com. We will make available free of charge through our internet site, via a link to the SEC’s internet site at http://www.sec.gov, our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy statements and Forms 3, 4 and 5 filed on behalf of directors and executive officers and any amendments to those reports filed or furnished pursuant to the Exchange Act as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC. Also posted on our website in the ''Corporate Governance’’ section, and available in print upon request of any stockholder to the Investor Relations Department, are charters for the company’s Audit Committee, Compensation Committee and Nominating and Corporate Governance Committee, our Corporate Governance Guidelines and Code of Business Conduct and Ethics governing our directors, officers and employees. You will need to have Adobe Acrobat Reader software installed on your computer to view these documents, which are in PDF format.

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Part I. Financial Information
Item 1. Financial Statements
Greenhill & Co., Inc. and Subsidiaries
Condensed Consolidated Statements of Financial Condition
                 
    As of  
    March 31,        
    2009     December 31,  
    (unaudited)     2008  
Assets
               
Cash and cash equivalents
  $ 42,345,476     $ 62,848,655  
Financial advisory fees receivable, net of allowance for doubtful accounts of $0.0 million and $0.3 million as of March 31, 2009 and December 31, 2008, respectively
    56,680,585       26,255,995  
Other receivables
    5,619,067       4,434,227  
Property and equipment, net of accumulated depreciation and amortization of $36.6 million and $35.5 million as of March 31, 2009 and December 31, 2008, respectively
    11,032,789       12,074,207  
Investments in affiliated merchant banking funds
    70,193,342       73,412,898  
Other investments
    35,053,304       34,951,710  
Due from affiliates
    626,772       455,615  
Goodwill
    15,628,769       16,133,050  
Deferred tax asset
    36,345,336       33,996,719  
Other assets
    1,555,026       1,216,117  
 
           
Total assets
  $ 275,080,466     $ 265,779,193  
 
           
 
               
Liabilities and Equity
               
Compensation payable
  $ 4,410,432     $ 19,448,513  
Accounts payable and accrued expenses
    10,990,532       9,614,649  
Bank loan payable
    49,425,000       26,500,000  
Taxes payable
    7,578,278       10,149,231  
 
           
Total liabilities
    72,404,242       65,712,393  
 
               
Common stock, par value $0.01 per share; 100,000,000 shares authorized, 33,053,161 and 32,830,423 shares issued as of March 31, 2009 and December 31, 2008, respectively; 28,114,706 and 27,981,150 shares outstanding as of March 31, 2009 and December 31, 2008, respectively
    330,532       328,304  
Restricted stock units
    61,550,162       59,525,357  
Additional paid-in capital
    221,681,095       213,365,812  
Exchangeable shares of subsidiary; 257,156 shares issued and 208,418 shares outstanding as of March 31, 2009 and December 31, 2008
    12,442,555       12,442,555  
Retained earnings
    189,389,744       189,357,441  
Accumulated other comprehensive income (loss)
    (19,227,258 )     (17,408,714 )
Treasury stock, at cost, par value $0.01 per share; 4,938,455 and 4,849,273 shares as of March 31, 2009 and December 31, 2008, respectively
    (265,103,088 )     (259,361,550 )
 
           
Stockholders’ equity
    201,063,742       198,249,205  
 
           
Noncontrolling interests
    1,612,482       1,817,595  
 
           
Total equity
    202,676,224       200,066,800  
 
           
Total liabilities and equity
  $ 275,080,466     $ 265,779,193  
 
           
See accompanying notes to condensed consolidated financial statements (unaudited).

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Greenhill & Co., Inc. and Subsidiaries
Condensed Consolidated Statements of Income (unaudited)
                 
    For the Three Months Ended  
    March 31,  
    2009     2008  
Revenues
               
Financial advisory fees
  $ 65,144,694     $ 69,449,395  
Merchant banking revenue
    (3,390,755 )     4,530,815  
Interest income
    72,740       1,400,175  
 
           
Total revenues
    61,826,679       75,380,385  
Expenses
               
Employee compensation and benefits
    28,440,274       34,674,978  
Occupancy and equipment rental
    2,549,996       2,614,948  
Depreciation and amortization
    1,153,761       1,105,821  
Information services
    1,489,606       1,733,482  
Professional fees
    1,432,116       924,299  
Travel related expenses
    1,911,687       1,946,894  
Interest expense
    353,646       1,156,186  
Other operating expenses
    2,100,504       1,192,062  
 
           
Total expenses
    39,431,590       45,348,670  
Income before taxes
    22,395,089       30,031,715  
Provision for taxes
    8,676,617       10,869,653  
 
           
Consolidated net income
    13,718,472       19,162,062  
Less: Net loss allocated to noncontrolling interests
    (179,643 )     (50,199 )
 
           
Net income allocated to common stockholders
  $ 13,898,115     $ 19,212,261  
 
           
 
               
Average shares outstanding:
               
Basic
    29,404,027       28,116,288  
Diluted
    29,457,672       28,190,108  
Earnings per share:
               
Basic
  $ 0.47     $ 0.68  
Diluted
  $ 0.47     $ 0.68  
Dividends declared and paid per share
  $ 0.45     $ 0.45  
See accompanying notes to condensed consolidated financial statements (unaudited).

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Greenhill & Co., Inc. and Subsidiaries
Condensed Consolidated Statements of Comprehensive Income (unaudited)
                 
    For the Three Months Ended  
    March 31,  
    2009     2008  
Consolidated net income
  $ 13,718,472     $ 19,162,062  
Currency translation adjustment, net of tax
    (1,818,544 )     467,370  
 
           
Comprehensive income
    11,899,928       19,629,432  
 
           
Less: Net loss allocated to noncontrolling interests
    (179,643 )     (50,199 )
Comprehensive income allocated to common stockholders
  $ 12,079,571     $ 19,679,631  
 
           
See accompanying notes to condensed consolidated financial statements (unaudited).

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Greenhill & Co., Inc. and Subsidiaries
Condensed Consolidated Statements of Changes in Equity
                 
    Three Months        
    Ended        
    March 31,     Year Ended  
    2009     December 31,  
    (unaudited)     2008  
Common stock, par value $0.01 per share
               
Common stock, beginning of the year
  $ 328,304     $ 312,322  
Common stock issued
    2,228       15,982  
 
           
Common stock, end of the period
    330,532       328,304  
 
           
Restricted stock units
               
Restricted stock units, beginning of the year
    59,525,357       42,743,802  
Restricted stock units recognized
    10,342,401       32,196,650  
Restricted stock units delivered
    (8,317,596 )     (15,415,095 )
 
           
Restricted stock units, end of the period
    61,550,162       59,525,357  
 
           
Additional paid-in capital
               
Additional paid-in capital, beginning of the year
    213,365,812       126,268,395  
Common stock issued
    8,402,245       85,940,317  
Tax benefit from the delivery of restricted stock units
    (86,962 )     1,157,100  
 
           
Additional paid-in capital, end of the period
    221,681,095       213,365,812  
 
           
Exchangeable shares of subsidiary
               
Exchangeable shares of subsidiary, beginning of the year
    12,442,555       15,352,213  
Exchangeable shares of subsidiary delivered
          (2,909,658 )
 
           
Exchangeable shares of subsidiary, end of the period
    12,442,555       12,442,555  
 
           
Retained earnings
               
Retained earnings, beginning of the year
    189,357,441       190,416,057  
Dividends
    (13,865,812 )     (50,036,686 )
Net income allocated to common shareholders
    13,898,115       48,978,070  
 
           
Retained earnings, end of the period
    189,389,744       189,357,441  
 
           
Accumulated other comprehensive income (loss)
               
Accumulated other comprehensive income (loss), beginning of the year
    (17,408,714 )     4,727,125  
Currency translation adjustment, net
    (1,818,544 )     (22,135,839 )
 
           
Accumulated other comprehensive income (loss), end of the period
    (19,227,258 )     (17,408,714 )
 
           
Treasury stock, at cost; par value $0.01 per share
               
Treasury stock, beginning of the year
    (259,361,550 )     (237,529,448 )
Repurchased
    (5,741,538 )     (21,832,102 )
 
           
Treasury stock, end of the period
    (265,103,088 )     (259,361,550 )
 
           
Total stockholders’ equity
    201,063,742       198,249,205  
 
           
Noncontrolling interests
               
Noncontrolling interests, beginning of the year
    1,817,595       2,253,122  
Net loss allocated to noncontrolling interests
    (179,643 )     (511,670 )
Contributions from noncontrolling interests
    18,000       318,101  
Distributions to noncontrolling interests
    (43,470 )     (241,958 )
 
           
Noncontrolling interests, end of period
    1,612,482       1,817,595  
 
           
Total equity
  $ 202,676,224     $ 200,066,800  
 
           
See accompanying notes to condensed consolidated financial statements (unaudited).

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Greenhill & Co., Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (unaudited)
                 
    For the Three Months Ended  
    March 31,  
    2009     2008  
Operating activities:
               
Consolidated net income
    13,718,472       19,162,062  
Adjustments to reconcile consolidated net income to net cash used in operating activities:
               
Non-cash items included in net income:
               
Depreciation and amortization
    1,153,761       1,105,821  
Net investment losses
    7,854,533       518,516  
Restricted stock units recognized and common stock issued
    10,431,707       8,501,476  
Deferred taxes
    (2,348,617 )      
Changes in operating assets and liabilities:
               
Financial advisory fees receivable
    (30,424,590 )     3,130,189  
Due to (from) affiliates
    (171,157 )     (587,011 )
Other receivables and assets
    (1,523,749 )     (1,504 )
Compensation payable
    (15,038,081 )     (89,489,340 )
Accounts payable and accrued expenses
    1,375,883       2,515,805  
Taxes payable
    (2,570,953 )     (8,945,906 )
 
           
Net cash used in operating activities
    (17,542,791 )     (64,089,892 )
 
               
Investing activities:
               
Purchases of merchant banking investments
    (4,938,029 )     (12,251,838 )
Purchases of investments
    (525,000 )     (400,000 )
Proceeds from investments
          9,521,683  
Distributions from investments
    590,887       3,963,045  
Purchases of property and equipment
    (233,067 )     (428,037 )
 
           
Net cash (used in) provided by investing activities
    (5,105,209 )     404,853  
 
               
Financing activities:
               
Proceeds of revolving bank loan
    35,925,000       19,250,000  
Repayment of revolving bank loan
    (13,000,000 )     (38,900,000 )
Contributions from noncontrolling interests
    18,000       (216,379 )
Distributions to noncontrolling interests
    (43,470 )      
Dividends paid
    (13,865,812 )     (13,093,751 )
Purchase of treasury stock
    (5,741,538 )     (8,719,591 )
Net tax benefit from the delivery of restricted stock units and payment of dividend equivalents
    (86,962 )     115,286  
 
           
Net cash (used in) provided by financing activities
    3,205,218       (41,564,435 )
Effect of exchange rate changes on cash and cash equivalents
    (1,060,397 )     852,479  
 
           
Net decrease in cash and cash equivalents
    (20,503,179 )     (104,396,995 )
Cash and cash equivalents, beginning of period
    62,848,655       191,670,516  
 
           
Cash and cash equivalents, end of period
  $ 42,345,476     $ 87,273,521  
 
           
 
               
Supplemental disclosure of cash flow information:
               
Cash paid for interest
  $ 254,842     $ 1,107,822  
 
           
Cash paid for taxes, net of refunds
  $ 13,625,570     $ 18,827,501  
 
           
See accompanying notes to condensed consolidated financial statements (unaudited).

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Note 1 — Organization
          Greenhill & Co., Inc., a Delaware corporation, together with its subsidiaries (collectively, the “Company”), is an independent investment banking firm. The Company has clients located throughout the world, with offices located in New York, London, Frankfurt, Toronto, Tokyo, Chicago, Dallas, and San Francisco.
          The Company’s activities as an investment banking firm constitute a single business segment, with two principal sources of revenue:
    Financial advisory, which includes engagements relating to mergers, acquisitions, financing advisory and restructurings, and fund placement advisory; and
 
    Merchant banking, which includes the management of outside capital invested in the Company’s merchant banking funds and other similar vehicles, primarily Greenhill Capital Partners (“GCP I”), Greenhill Capital Partners II (“GCP II”), Greenhill Capital Partners Europe (“GCP Europe”), and Greenhill SAV Partners (“GSAVP” together with GCP I, GCP II and GCP Europe, the ''Greenhill Funds”), and the Company’s principal investments in the Greenhill Funds and other merchant banking funds and similar vehicles.
          The Company’s U.S. and international wholly-owned subsidiaries include Greenhill & Co., LLC (“G&Co”), Greenhill Capital Partners, LLC (“GCPLLC”), Greenhill Venture Partners, LLC (“GVP”), Greenhill Aviation Co., LLC (“GAC”), Greenhill & Co. Europe Holdings Limited (“GCE”), and Greenhill & Co. Holding Canada Ltd (“GCH”) and Greenhill & Co. Japan Ltd. (“GCJ”).
          G&Co is a registered broker-dealer under the Securities Exchange Act of 1934, as amended, and is registered with the Financial Industry Regulation Authority. G&Co is engaged in the investment banking business principally in North America.
          GCE is a U.K. based holding company. GCE controls Greenhill & Co. International LLP (“GCI”), Greenhill & Co Europe LLP (“GCEI”) and Greenhill Capital Partners Europe LLP (“GCPE”), through its controlling membership interests. GCI and GCEI are engaged in investment banking activities, principally in Europe, and are subject to regulation by the U.K. Financial Services Authority (“FSA”). GCPE is also regulated by the FSA and provides investment advisory services to GCP Europe, the Company’s UK-based private equity fund that invests in a diversified portfolio of private equity and equity related investments in mid-market companies located primarily in the United Kingdom and Continental Europe. The majority of the investors in GCP Europe are third parties; however, the Company and its employees have also made investments in GCP Europe.
          The Company, through Greenhill & Co. Canada Ltd., a wholly-owned Canadian subsidiary of GCH, engages in investment banking activities in Canada.
          GCPLLC is an investment adviser, registered under the Investment Advisers Act of 1940 (“IAA”). GCPLLC provides investment advisory services to GCP I and GCP II, our U.S. based private equity funds that invest in a diversified portfolio of private equity and equity related investments. The majority of the investors in GCP I and GCP II are third parties; however, the Company and its employees have also made investments in GCP I and GCP II.
          GVP is an investment advisor, registered under the IAA. GVP provides investment advisory services to GSAVP, our venture funds that invest in early growth stage companies in the tech-enabled and business information services industries. The majority of the investors in GSAVP are third parties; however, the Company and its employees have also made investments in GSAVP.
          GAC owns and operates an aircraft, which is used for the exclusive benefit of the Company’s employees and their immediate family members.
          On February 21, 2008, the Company completed the initial public offering of units in its subsidiary, GHL Acquisition Corp., a blank check company (“GHLAC”). In the offering, GHLAC sold 40,000,000

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units for an aggregate purchase price of $400,000,000. Each unit consists of one share of GHLAC’s common stock and one warrant (the “Founder Warrants”). In addition, the Company purchased private placement warrants for an aggregate purchase price of $8,000,000 (the “GHLAC Private Placement Warrants”, together with the Founder Warrants, the “GHLAC Warrants”). As of March 31, 2009, the Company owns approximately 8,369,563 (17.3%) of the outstanding common stock of GHLAC. As a result of its public offering, GHLAC is no longer a wholly-owned subsidiary of the Company. See “Note 3 — Investments — Other Investments”.
Note 2 — Summary of Significant Accounting Policies
Basis of Financial Information
          These condensed consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States, which require management to make estimates and assumptions regarding future events that affect the amounts reported in our financial statements and these footnotes, including investment valuations, compensation accruals and other matters. Management believes that the estimates used in preparing its condensed consolidated financial statements are reasonable and prudent. Actual results could differ materially from those estimates. Certain reclassifications have been made to prior period information to conform to current period presentation.
          The condensed consolidated financial statements of the Company include all consolidated accounts of Greenhill & Co., Inc. and all other entities in which the Company has a controlling interest, including GCI, GCEI and GCPE, after eliminations of all significant inter-company accounts and transactions. In accordance with FASB Interpretation No. 46, “Consolidation of Variable Interest Entities,” (“FIN 46-R”), the Company consolidates the general partners of its merchant banking funds in which it has a majority of the economic interest. The general partners account for their investments in their merchant banking funds under the equity method of accounting pursuant to Accounting Principles Board Opinion No. 18, “The Equity Method of Accounting for Investments in Common Stock” (“APB 18”). As such, the general partners record their proportionate shares of income (loss) from the underlying merchant banking funds. As the merchant banking funds follow investment company accounting, and generally record all their assets and liabilities at fair value, the general partners’ investment in merchant banking funds represents an estimation of fair value. The Company does not consolidate the merchant banking funds since the Company, through its general partner and limited partner interests, does not have a majority of the economic interest in such funds and under EITF No. 04-5, “Accounting for an Investment in a Limited Partnership When the Investor Is the Sole General Partner and the Limited Partners Have Certain Rights” (“EITF 04-5”), is subject to removal by a simple majority of unaffiliated third-party investors.
          These condensed consolidated financial statements are unaudited and should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2008 filed with the Securities and Exchange Commission. The condensed consolidated financial information as of December 31, 2008 has been derived from audited consolidated financial statements not included herein. The results of operations for interim periods are not necessarily indicative of results for the entire year.
Noncontrolling Interests
          The Company adopted FASB Statement No. 160, “Noncontrolling Interests in Consolidated Financial Statements — an amendment of Accounting Research Bulletin No. 51” (“SFAS 160”), as of January 1, 2009. SFAS 160 requires reporting entities to present noncontrolling (minority) interests as equity (as opposed to as a liability or mezzanine equity), present income allocated to both noncontrolling interests and common stockholders, and provides guidance on the accounting for transactions between an entity and noncontrolling interests. The Company has revised its prior period presentation, as required, to conform to this new pronouncement.
          The portion of the consolidated interests in the general partners of our merchant banking funds, which are held directly by employees of the Company are represented as noncontrolling interests in equity.

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Revenue Recognition
      Financial Advisory Fees
          The Company recognizes financial advisory fee revenue for mergers and acquisitions or financing advisory and restructuring engagements when the services related to the underlying transactions are completed in accordance with the terms of its engagement letters. The Company recognizes fund placement advisory fees at the time of the client’s acceptance of capital or capital commitments in accordance with the terms of the engagement letter. Retainer fees are recognized as financial advisory fee revenue over the period in which the related service is rendered.
          The Company’s clients reimburse certain expenses incurred by the Company in the conduct of financial advisory engagements. Expenses are reported net of such client reimbursements. Client reimbursements totaled $0.4 million and $0.8 million for the three months ended March 31, 2009 and 2008, respectively.
      Merchant Banking and Other Revenues
          Merchant banking revenues consist of (i) management fees on the Company’s merchant banking activities, (ii) gains (or losses) on investments in the Company’s investment in merchant banking funds and other principal investment activities, and (iii) merchant banking profit overrides.
          Management fees earned from the Company’s merchant banking activities are recognized over the period of related service.
          The Company recognizes revenue on investments in its merchant banking funds based on its allocable share of realized and unrealized gains (or losses) reported by such funds. Investments held by merchant banking funds are recorded at estimated fair value. The value of merchant banking fund investments in privately held companies are determined by the general partner of the fund after giving consideration to the cost of the security, the pricing of other sales of securities by the portfolio company, the price of securities of other companies comparable to the portfolio company, purchase multiples paid in other comparable third-party transactions, the original purchase price multiple, market conditions, liquidity, operating results and other qualitative and quantitative factors. Discounts are generally applied to the funds’ privately held investments to reflect the lack of liquidity and other transfer restrictions. Investments held by the merchant banking funds as well as those held by the Company in publicly traded securities are valued using quoted market prices discounted for any legal or contractual restrictions on sale. Because of the inherent uncertainty of valuations as well as the discounts applied, the estimated fair values of investments in privately held companies may differ significantly from the values that would have been used had a ready market for the securities existed. The values at which the Company’s investments are carried on its books are adjusted to estimated fair value at the end of each quarter and the volatility in general economic conditions, stock markets and commodity prices may result in significant changes in the estimated fair value of the investments.
          The Company recognizes merchant banking profit overrides when certain financial returns are achieved over the life of the fund. Profit overrides are generally calculated as a percentage of the profits over a specified threshold earned by each fund on investments managed on behalf of unaffiliated investors in GCP I and principally all investors except the Company in GCP II, GCP Europe and GSAVP. The profit overrides earned by the Company are recognized on an accrual basis throughout the year in accordance with Method 2 of EITF Issue No. D-96, “Accounting for Management Fees Based on a Formula” (“EITF D-96”). In accordance with Method 2 of EITF D-96, the Company records as revenue the amount that would be due pursuant to the fund agreements at each period end as if the fund agreements were terminated at that date. Overrides are generally calculated on a deal-by-deal basis but are subject to investment performance over the life of each merchant banking fund. We may be required to repay a portion of the overrides paid to the limited partners of the funds in the event a minimum performance level is not achieved by the fund as a whole (we refer to these potential repayments as “clawbacks”). We would be required to establish a reserve for potential clawbacks if we were to determine the likelihood of a clawback is probable and the amount of the clawback can be reasonably estimated. As of March 31, 2009, the Company has not reserved

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for any clawback obligations under applicable fund agreements. See “Note 3 — Investments” for further discussion of the merchant banking revenues recognized.
Investments
          The Company’s investments in merchant banking funds are recorded under the equity method of accounting based upon the Company’s proportionate share of the fair value of the underlying merchant banking fund’s net assets. The Company’s holdings of the GHLAC common stock is also recorded under the equity method of accounting. The Company’s other investments are recorded at estimated fair value.
Financial Advisory Fees Receivables
          Receivables are stated net of an allowance for doubtful accounts. The estimate for the allowance for doubtful accounts is derived by the Company by utilizing past client transaction history and an assessment of the client’s creditworthiness. The Company reversed bad debt expense previously recorded of approximately $0.3 million for the three months ended March 31, 2009. No bad debt expense was recorded for the three months ended March 31, 2008.
Restricted Stock Units
          In accordance with the fair value method prescribed by FASB Statement No. 123(R), “Share-Based Payment” (“SFAS 123(R)”), which is a revision of FASB Statement No. 123, “Accounting for Stock-Based Compensation”, the fair value of restricted stock units granted to employees with future service requirements is recorded as compensation expense and generally is amortized over a five-year service period following the date of grant. Compensation expense is determined at the date of grant. As the Company expenses the awards, the restricted stock units recognized are recorded within equity. The restricted stock units are reclassed into common stock and additional paid-in capital upon vesting. The Company records dividend equivalent payments, net of estimated forfeitures, on outstanding restricted stock units as a dividend payment and a charge to equity.
Earnings per Share
          The Company calculates earnings per share (“EPS”) in accordance with FASB Statement No. 128, “Earnings per Share” (“SFAS 128”). Basic EPS is calculated by dividing net income allocated to common stockholders by the weighted average number of shares outstanding for the period. Diluted EPS includes the determinants of basic EPS plus the dilutive effect of the common stock deliverable pursuant to restricted stock units for which future service is required as a condition to the delivery of the underlying common stock.
          The Company adopted FASB Staff Position No. EITF 03-6-1, “Determining Whether Instruments Granted in Share-Based Payments Transactions Are Participating Securities” (“FSP EITF 03-6-1”), as of January 1, 2009. FSP EITF 03-6-1 addresses whether instruments granted in share-based payment transactions are participating securities prior to vesting and therefore need to be included in the earnings allocation in calculating earnings per share under the two-class method described in SFAS 128. FSP EITF 03-06-1 requires companies to treat unvested share-based payment awards that have non-forfeitable rights to dividend or dividend equivalents as a separate class of securities in calculating earnings per share. The adoption of this pronouncement did not have a material effect in calculating earnings per share.
Foreign Currency Translation
          Foreign currency assets and liabilities have been translated at rates of exchange prevailing at the end of the periods presented in accordance with FASB Statement No. 52 “Foreign Currency Translation” (“SFAS 52”). Income and expenses transacted in foreign currency have been translated at average monthly exchange rates during the period. Translation gains and losses are included in the foreign currency translation adjustment included as a component of other comprehensive income in the condensed consolidated statement of changes in stockholders’ equity. Foreign currency transaction gains and losses are included in the condensed consolidated statement of income.

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Goodwill
          Goodwill is the cost in excess of the fair value of identifiable net assets at acquisition date. In accordance with SFAS No. 142, “Goodwill and Other Intangible Assets,” (“SFAS 142”), goodwill is tested at least annually for impairment. An impairment loss is triggered if the estimated fair value of an operating business is less than estimated net book value. Such loss is calculated as the difference between the estimated fair value of goodwill and its carrying value. Goodwill is translated at the rate of exchange prevailing at the end of the periods presented in accordance with SFAS 52.
Property and Equipment
          Property and equipment is stated at cost less accumulated depreciation and amortization. Depreciation is computed by the straight-line method over the life of the assets. Amortization of leasehold improvements is computed by the straight-line method over the lesser of the life of the asset or the term of the lease. Estimated useful lives of the assets are generally as follows:
          Equipment — 5 years
          Furniture and fixtures — 7 years
          Leasehold improvements — the lesser of 10 years or the remaining lease term
Provision for Taxes
          The Company accounts for taxes in accordance with FASB Statement No. 109, “Accounting for Income Taxes” (“SFAS 109”), which requires the recognition of tax benefits or expenses on the temporary differences between the financial reporting and tax bases of its assets and liabilities.
Cash Equivalents
          The Company considers all highly liquid investments with a maturity date of three months or less, when purchased, to be cash equivalents. At March 31, 2009 and December 31, 2008, the carrying value of the Company’s cash equivalents approximated fair value.
Market/Credit Risks
          The Company maintains its cash and cash equivalents with financial institutions with high credit ratings. The Company maintains deposits in federally insured financial institutions in excess of federally insured (FDIC) limits and in institutions in which deposits are not insured. However, management believes that the Company is not exposed to significant credit risk due to the financial position of the depository institution in which those deposits are held.
Financial Instruments and Fair Value
          The Company adopted FASB Statement No. 157, “Fair Value Measurements” (“SFAS 157”), as of January 1, 2008. SFAS 157 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy under SFAS 157 are described below:
      Basis of Fair Value Measurement
Level 1 — Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;
Level 2 — Quoted prices in markets that are not active or financial instruments for which all significant inputs are observable, either directly or indirectly;
Level 3 — Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.

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          A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. In determining the appropriate levels, the Company performs a detailed analysis of the assets and liabilities that are subject to SFAS 157. At each reporting period, all assets and liabilities for which the fair value measurement is based on significant unobservable inputs or instruments which trade infrequently and therefore have little or no price transparency are classified as Level 3.
Derivative Instruments
          The Company accounts for the GHLAC Warrants, which were obtained in connection with its investment in the GHLAC under FASB Statement No. 133, “Accounting for Derivative Instruments and Hedging Activities” (“SFAS 133”). SFAS 133 establishes accounting and reporting standards for derivative instruments and other hedging activities. In accordance with SFAS 133, the Company records the GHLAC Warrants in the condensed consolidated statement of financial condition at estimated fair value, with changes in estimated fair value recorded in merchant banking revenue in the condensed consolidated statement of income.
Note 3 — Investments
Affiliated Merchant Banking Investments
          The Company invests in merchant banking funds for which it also acts as the managing general partner. In addition to recording its direct investments in the funds, the Company consolidates each general partner in which it has a majority of the economic interest.
          The Company’s management fee income consists of fees paid by its merchant banking funds and other transaction fees paid by the portfolio companies.
          Investment gains or losses from the merchant banking activities are comprised of investment income, realized and unrealized gains from the Company’s investment in the Greenhill Funds, and the consolidated earnings of the general partner in which it has a majority economic interest, offset by allocated expenses of the funds. That portion of the earnings of the general partner which are held by employees and former employees of the Company is recorded as net income (loss) allocated to noncontrolling interests.
          As the managing general partner, the Company makes investment decisions for the Greenhill Funds and is entitled to receive an override of the profits realized from the funds. The Company includes in consolidated merchant banking revenue all realized and unrealized profit overrides it earns from the Greenhill Funds. This includes profit overrides of the managing general partner of GCP I with respect to all investments it made after January 1, 2004 and the profit overrides of the general partners of GCP II, GCP Europe and GSAVP for all investments. From an economic perspective, profit overrides in respect of all merchant banking investments made after January 1, 2004 are allocated 50% to the Company and 50% to employees of the Company. In addition, the Company also includes in merchant banking revenue its portion and certain employees’ portion of the profit overrides of GCP I with respect to investments made prior to January 1, 2004. The economic share of the profit overrides allocated to the employees of the Company is recorded as compensation expense.
          The Company’s merchant banking revenue, by source, is as follows:
                 
    For the Three Months Ended  
    March 31,  
    2009     2008  
    (in thousands, unaudited)  
Management fees
  $ 4,464     $ 5,049  
Net realized and unrealized gains (losses) on investments in merchant banking funds
    (7,131 )     1,180  
Net realized and unrealized merchant banking profit overrides
    (300 )     (1,100 )
Other realized and unrealized investment loss
    (424 )     (598 )
 
           
Total merchant banking revenue
  $ (3,391 )   $ 4,531  
 
           

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          The carrying value of the Company’s investments in affiliated merchant banking funds are as follows:
                 
    As of     As of  
    March 31,     December 31,  
    2009     2008  
    (in thousands, unaudited)  
Investment in GCP I
  $ 7,333     $ 8,469  
Investment in GCP II
    49,626       55,852  
Investment in GSAVP
    3,521       2,730  
Investment in GCPE
    9,713       6,362  
 
           
Total investments in affiliated merchant banking funds
  $ 70,193     $ 73,413  
 
           
          At March 31, 2009 and December 31, 2008, the investment in GCP I included $0.4 million and $0.5 million, respectively, related to the noncontrolling interests in the managing general partner of GCP I held directly by various employees of the Company. At March 31, 2009 and December 31, 2008, the investment in GCP II included $1.1 million and $1.3 million, respectively, related to the noncontrolling interests in the general partner of GCP II held directly by various employees of the Company. At March 31, 2009 and December 31, 2008, approximately $0.8 million and $0.8 million, respectively, of the Company’s compensation payable related to profit overrides for unrealized gains of the Greenhill Funds. This amount may increase or decrease depending on the change in the fair value of the Greenhill Funds’ portfolio and is payable, subject to clawback, at the time the funds realize cash proceeds.
          At March 31, 2009, the Company had unfunded commitments of $46.7 million to the Greenhill Funds. These commitments are expected to be drawn on from time to time over a period of up to five years from the relevant commitment date of each fund. The commitments to GCP I expired on March 31, 2007. At March 31, 2009, the Company had unfunded commitments to GCP II of approximately $17.6 million which may be funded through June 2010, unfunded commitments to GSAVP of approximately $5.8 million which may be funded through September 2011, and unfunded commitments to GCP Europe of approximately $23.3 million which may be funded through December 2012.
          Summarized financial information for the combined GCP I funds, in their entirety, is as follows:
                 
    As of   As of
    March 31,   December 31,
    2009   2008
    (in thousands, unaudited)
Cash
  $ 10,514     $ 14,736  
Portfolio investments
    55,601       55,970  
Total assets
    66,118       70,716  
Total liabilities
    2,702       2,310  
Partners’ capital
    63,416       68,406  
                 
    For the Three Months Ended  
    March 31,  
    2009     2008  
    (in thousands, unaudited)  
Net realized and unrealized losses on investments
  $ (369 )   $ (27,846 )
Investment income
    19       310  
Expenses
    (147 )     (234 )
 
           
Net loss
  $ (497 )   $ (27,770 )
 
           

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     Summarized financial information for the combined GCP II funds, in their entirety, is as follows:
                 
    As of   As of
    March 31,   December 31,
    2009   2008
    (in thousands, unaudited)
Cash
  $ 9,771     $ 4,393  
Portfolio investments
    466,622       528,178  
Total assets
    478,795       533,123  
Total liabilities
    7,572       856  
Partners’ capital
    471,223       532,267  
                 
    For the Three Months Ended  
    March 31,  
    2009     2008  
    (in thousands, unaudited)  
Net realized and unrealized gains (losses) on investments
  $ (59,399 )   $ 48,924  
Investment income
    528       5,801  
Expenses
    (2,174 )     (3,666 )
 
           
Net income (loss)
  $ (61,045 )   $ 51,059  
 
           
Other Investments
     The Company’s other investments are as follows:
                 
    As of     As of  
    March 31,     December 31,  
    2009     2008  
    (in thousands)  
Barrow Street Capital II, LLC
  $ 4,261     $ 3,736  
Iridium 5% Convertible Note
    22,900       22,900  
GHLAC Common Stock and GHLAC Warrants
    7,892       8,316  
 
           
Total other investments
  $ 35,053     $ 34,952  
 
           
     The Company committed $5.0 million to Barrow Street Capital III, LLC (''Barrow Street III’’), a real estate investment fund, of which $0.5 million remains unfunded at March 31, 2009. The commitment to Barrow Street III expired in April 2009 subject to a reserve amount of $500,000 which may be called at any time to preserve or enhance the value of existing investments. The Company accounts for this investment under the equity method.
     In October 2008, GCE, a subsidiary of the Company, invested $22.9 million in Iridium Holdings, L.L.C. (“Iridium”). GHLAC has agreed to acquire Iridium subject to stockholder approval, various regulatory approvals and other customary closing conditions. The GCE investment is in the form of a convertible subordinated note (the “Iridium 5% Convertible Note”), which is unsecured, accrues interest at the rate of 5% per annum starting six months after the issuance date and matures on October 24, 2015. The Iridium 5% Convertible Note is convertible, at GCE’s option, into Iridium Class A units, subject to certain conditions. The carrying value of the investment in the Iridium 5% Convertible Note approximates fair value.

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Fair Value Hierarchy
The following tables set forth by level assets and liabilities measured at fair value on a recurring basis. As required by SFAS 157, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.
Assets Measured at Fair Value on a Recurring Basis as of March 31, 2009
                                 
    Quoted Prices in                    
    Active Markets     Significant Other     Significant     Balance as  
    For     Observable     Unobservable     of  
    Identical Assets     Inputs     Inputs     March 31,  
    (Level 1)     (Level 2)     (Level 3)     2009  
    (in thousands, unaudited)  
Assets
                               
Iridium 5% Convertible Note
  $     $     $ 22,900     $ 22,900  
GHLAC Warrants 1
                7,872       7,872  
 
                       
Total investments
  $     $     $ 30,772     $ 30,772  
 
                       
Assets Measured at Fair Value on a Recurring Basis as of December 31, 2008
                                 
    Quoted Prices in                     Balance as  
    Active Markets     Significant Other     Significant     Of  
    For     Observable     Unobservable     December  
    Identical Assets     Inputs     Inputs     31,  
    (Level 1)     (Level 2)     (Level 3)     2008  
    (in thousands, unaudited)  
Assets
                               
Iridium 5% Convertible Note
  $     $     $ 22,900     $ 22,900  
GHLAC Warrants 1
                8,295       8,295  
 
                       
Total investments
  $     $     $ 31,195     $ 31,195  
 
                       
Level 3 Gains and Losses
The following tables set forth a summary of changes in the fair value of the Company’s level 3 investments for the three months ended March 31, 2009.
                                                 
    Beginning                     Purchases,     Net     Ending  
    Balance     Realized     Unrealized     Sales, Other     Transfers     Balance  
    January 1,     Gains     Gains or     Settlements and     in and/or     March 31,  
    2009     or (Losses)     (Losses)     Issuances, net     out of Level 3     2009  
    (in thousands, unaudited)  
Assets
                                               
Iridium 5% Convertible Note
  $ 22,900     $     $     $     $     $ 22,900  
GHLAC Warrants 1
    8,295             (423 )                 7,872  
 
                                   
Total investments
  $ 31,195     $     $ (423 )   $     $     $ 30,772  
 
                                   
     The Company has used an internally developed model to value the GHLAC Warrants, which takes into account various standard option valuation methodologies, including Black Scholes modeling. Selected
 
1   The GHLAC Warrants consist of the founder warrants and the private placement warrants discussed in Note 1.

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inputs for the Company’s model include: (1) the terms of the warrants themselves, including exercise price, exercisability threshold (where applicable) and expiration date; (2) externally observable factors including yields on U.S. Treasury obligations and various equity volatility measures, including historical volatility of broad market indices; and (3) internal estimates, including the Company’s weighted average cost of capital and the probability of a GHLAC acquisition closing.
Note 4 — Related Parties
     At March 31, 2009 and December 31, 2008, the Company had receivables of $0.6 million and $0.5 million, due from the Greenhill Funds, respectively, relating to accrued management fees and expense reimbursements, which are included in due from affiliates.
     Included in accounts payable and accrued expenses are $0.3 million at March 31, 2009 and $0.3 million at December 31, 2008 in interest payable on the undistributed earnings to the U.K. members of GCI.
Note 5 — Revolving Bank Loan Facility
     The Company has a $90.0 million revolving loan facility from a U.S. banking institution to provide for working capital needs, facilitate the funding of investments and other general corporate purposes. The revolving loan facility is secured by all management fees earned by GCPLLC and GVP and any cash distributed to GCPLLC or GVP in respect of its partnership interests in GCPI and GCPII or GSAVP, respectively. Interest on borrowings is based on the higher of Prime Rate or 4.0% and is payable monthly. The revolving bank loan facility matures on December 31, 2009. In addition, the Company must comply with certain financial and liquidity covenants. The weighted average daily borrowings outstanding under the loan facility during the three months ended March 31, 2009 and 2008, was approximately $33.2 million and $78.7 million, respectively. The weighted average interest rates were 4.0% and 5.15% for the periods ended March 31, 2009 and 2008, respectively.
Note 6 —Equity
     As the result of adopting SFAS 160 in January 2009, noncontrolling interest is now included in equity as opposed to a liability or mezzanine equity. The Company adopted SFAS 160 as of January 1, 2009 and has revised prior year presentation, as required, to conform to this new presentation.
     On March 18, 2009, a dividend of $0.45 per share was paid to shareholders of record on March 3, 2009. Dividend equivalents of $1.1 million were paid on the restricted stock units that are expected to vest.
     During the three months ended March 31, 2009, 221,458 restricted stock units vested and were issued as common stock, of which the Company is deemed to have repurchased 89,182 shares at an average price of $64.38 per share in conjunction with the payment of tax liabilities in respect of stock delivered to its employees in settlement of restricted stock units.
     During the three months ended March 31, 2008, 160,913 restricted stock units vested and were issued as common stock, of which the Company repurchased in open market transactions 78,630 shares at an average price of $63.58. In addition, during the three months ended March 31, 2008, the Company is deemed to have repurchased 55,898 shares of its common stock at an average price of $66.55 per share in conjunction with the payment of tax liabilities in respect of stock delivered to its employees in settlement of restricted stock units.

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Note 7 — Earnings Per Share
     The computations of basic and diluted EPS are set forth below:
                 
    For the Three Months Ended  
    March 31,  
    2009     2008  
    (in thousands, except  
    per share amounts, unaudited)  
Numerator for basic and diluted EPS —net income available to common stockholders
  $ 13,898     $ 19,212  
 
           
Denominator for basic EPS — weighted average number of shares
    29,404       28,116  
Add — dilutive effect of:
               
Weighted average number of incremental shares issuable from restricted stock units
    54       74  
 
           
Denominator for diluted EPS — weighted average number of shares and dilutive potential shares
    29,458       28,190  
 
           
Earnings per share:
               
Basic
  $ 0.47     $ 0.68  
Diluted
  $ 0.47     $ 0.68  
Note 8 — Income Taxes
     The Company’s effective rate will vary depending on the source of the income. Investment and certain foreign sourced income are taxed at a lower effective rate than U.S. trade or business income.
     Based on the Company’s historical taxable income and its expectation for the future, management expects that the deferred tax asset, which relates principally to compensation expense deducted for book purposes but not yet for tax purposes, will be realized as offsets to deferred tax liabilities and as offsets to the tax consequences of future taxable income.
     Deferred taxes for the foreign affiliates are translated in accordance with SFAS 52. Any translation gain or loss is included in the foreign currency translation adjustment included as a component of other comprehensive income, net of tax, in the condensed consolidated statement of changes in equity.
     For the periods ended March 31, 2009 and 2008 the Company performed a tax analysis in accordance with FASB Interpretation No. 48, “Accounting for Uncertainty in Income Taxes, an interpretation of FASB No. 109” (“FIN 48”). Based upon such analysis the Company was not required to accrue any liabilities pursuant to FIN 48.
Note 9 — Regulatory Requirements
     Certain subsidiaries of the Company are subject to various regulatory requirements in the United States and United Kingdom, which specify, among other requirements, minimum net capital requirements for registered broker-dealers.
     G&Co is subject to the Securities and Exchange Commission’s Uniform Net Capital requirements under Rule 15c3-1 (the ''Rule’’), which specifies, among other requirements, minimum net capital requirements for registered broker-dealers. The Rule requires G&Co to maintain a minimum net capital of the greater of $5,000 or 1/15 of aggregate indebtedness, as defined in the Rule. As of March 31, 2009, G&Co’s net capital was $12.4 million, which exceeded its requirement by $12.2 million. G&Co’s aggregate indebtedness to net capital ratio was 0.26 to 1 at March 31, 2009. Certain advances, distributions and other capital withdrawals of G&Co are subject to certain notifications and restrictive provisions of the Rule.

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     GCI, GCEI and GCPE are subject to capital requirements of the FSA. As of March 31, 2009, each of GCI, GCEI and GCPE was in compliance with its local capital adequacy requirements.
Note 10 — Business Information
     The Company’s activities as an investment banking firm constitute a single business segment, with two principal sources of revenue:
Financial advisory, which includes engagements relating to mergers and acquisitions, financing advisory and restructuring, and fund placement services; and
Merchant banking, which includes the management of outside capital invested in the Greenhill Funds and the Company’s principal investments in such funds and similar vehicles.
     The following provides a breakdown of our aggregate revenues by source for the three month periods ended March 31, 2009 and 2008, respectively:
                                 
    For the Three Months Ended  
    March 31, 2009     March 31, 2008  
            % of             % of  
    Amount     Total     Amount     Total  
    (in millions, unaudited)  
Financial advisory
  $ 65.1     NM   $ 69.5       92 %
Merchant banking and other revenues
    (3.3 )   NM     5.9       8 %
 
                       
Total revenue
  $ 61.8       100 %   $ 75.4       100 %
     The Company’s financial advisory and merchant banking activities are closely aligned and have similar economic characteristics. A similar network of business and other relationships upon which the Company relies for financial advisory opportunities also generate merchant banking opportunities. Generally, the Company’s professionals and employees are treated as a common pool of available resources and the related compensation and other Company costs are not directly attributable to either particular revenue source. In reporting to management, the Company distinguishes the sources of its investment banking revenues between financial advisory and merchant banking. However, management does not evaluate other financial data or operating results such as operating expenses, profit and loss or assets by its financial advisory and merchant banking activities.
Note 11 — Subsequent Event
     On April 22, 2009, the Board of Directors of the Company declared a quarterly dividend of $0.45 per share. The dividend will be payable on June 10, 2009 to the common stockholders of record on May 27, 2009.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
      In this Management’s Discussion and Analysis of Financial Condition and Results of Operations, ’’we’’, ''our’’, ''firm’’ and ''us’’ refer to Greenhill & Co., Inc.
Cautionary Statement Concerning Forward-Looking Statements
      The following discussion should be read in conjunction with our condensed consolidated financial statements and the related notes that appear elsewhere in this report. We have made statements in this discussion that are forward-looking statements. In some cases, you can identify these statements by forward-looking words such as ''may’’, ''might’’, ''will’’, ''should’’, ’’expect’’, ''plan’’, ''anticipate’’, ''believe’’, ''estimate’’, ''predict’’, ''potential’’ or ’’continue’’, the negative of these terms and other comparable terminology. These forward-looking statements, which are subject to risks, uncertainties and assumptions about us, may include projections of our future financial performance, based on our growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements. These factors include, but are not limited to, those discussed in our Report on Form 10-K under the caption ''Risk Factors’’.
      Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance or achievements. You should not rely upon forward-looking statements as predictions of future events. We are under no duty to update any of these forward-looking statements after the date hereof.
Overview
     Greenhill is an independent investment banking firm that (i) provides financial advice on significant mergers, acquisitions, restructurings and similar corporate finance matters as well as fund placement services for private equity and other financial sponsors and (ii) manages merchant banking funds and similar vehicles and commits capital to those funds and vehicles. We act for clients located throughout the world from offices in New York, London, Frankfurt, Toronto, Tokyo, Chicago, Dallas, and San Francisco. Our activities constitute a single business segment with two principal sources of revenue:
    Financial advisory, which includes engagements relating to mergers and acquisitions, financing advisory and restructuring, and fund placement advisory; and
    Merchant banking, which includes the management of outside capital invested in the firm’s merchant banking funds and other similar vehicles, primarily Greenhill Capital Partners (“GCP I”), Greenhill Capital Partners II (“GCP II”), Greenhill Capital Partners Europe (“GCP Europe”), and Greenhill SAV Partners (“GSAVP” together with GCP I, GCP II, and GCP Europe, the “Greenhill Funds”), and the firm’s principal investments in the Greenhill Funds and other merchant banking funds and similar vehicles.
     Historically, our financial advisory business has accounted for the majority of our revenues, and we expect that to remain so for the near to medium term. However, there may be periods, such as the second quarter of 2008 and the first quarter of 2006, in which the revenues of our merchant banking business outweighed our financial advisory revenues. Since our initial public offering our financial advisory business has generated 84% of total revenues and our merchant banking and other business has generated approximately 16% of our total revenue.
     The main driver of the financial advisory business is overall mergers and acquisitions, or M&A, and restructuring volume, particularly in the industry sectors and geographic markets in which we focus. We have recruited and plan to continue to recruit new managing directors to expand our industry sector and geographic coverage. We expect these hires will, over time, add incrementally to our revenue and income growth potential. In 2009 we have announced the recruitment of seven Managing Directors who bring

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     us additional sector expertise in Financial Services, Infrastructure, Insurance, and Gaming and Lodging. We will also shortly open a new office in Los Angeles. We have also announced in 2009 the formation of the Financing Advisory & Restructuring Group with the addition of a Managing Director in New York and another in London. In addition, we have announced the recruitment of a Senior Advisor focused on strategic advisory activities with technology companies in Silicon Valley as well as a Senior Advisor in London focused on expanding the firm’s European advisory services.
     The principal drivers of our merchant banking revenues are management fees paid by the Greenhill funds and realized and unrealized gains on investments and profit overrides, the size and timing of which are tied to a number of different factors including the performance of the particular companies in which we invest, general economic conditions in the debt and equity markets and other factors which affect the industries in which we invest, such as commodity prices. The amount of profit override we recognize will depend upon the underlying fair value of each portfolio company and is subject to volatility based upon the factors mentioned above. Profit overrides are generally calculated as a percentage of profits over a specified threshold earned by such fund on investments of each fund. At March 31, 2009, the net internal rate of return of each of GCP II, GCP Europe and GSAVP was negative. Unless we have significant gains in the portfolio companies in each fund it is not likely in the near-term that we will exceed the profit threshold for each fund and recognize profit override revenue.
     Presently, we have three merchant banking funds which are actively investing and we have assets under management in those funds of $1.3 billion. In addition, in early 2008 we completed a $400.0 million initial public offering of GHL Acquisition Corp. (“GHLAC”), a special purpose acquisition company, in which we invested approximately $8.0 million. In September 2008, GHLAC announced an agreement to acquire Iridium Holdings, LLC (“Iridium”), a leading provider of voice and data mobile satellite services and in October 2008, the firm completed a $22.9 million investment in Iridium.
Business Environment
     Economic and global financial market conditions can materially affect our financial performance. See the ''Risk Factors’’ in our Report on Form 10-K filed with the Securities and Exchange Commission. Net income and revenues in any period may not be indicative of full-year results or the results of any other period and may vary significantly from year to year and quarter to quarter.
     Financial advisory revenues were $65.1 million for the three months ended March 31, 2009 compared to $69.5 million for the three months ended March 31, 2008, which represents a decrease of 6%. At the same time, worldwide completed M&A volume decreased by 43%, from $819 billion in the first three months of 2008 compared to $471 billion in the first three months of 2009. 2
     Since July 2007 the financial markets have experienced a sharp contraction in credit availability and global M&A activity. Recent levels of capital markets volatility and an uncertain macroeconomic outlook have further contributed to a volatile and uncertain environment for evaluating many assets, securities and companies, which may lead to a more difficult environment for M&A activity. Because we earn a majority of our financial advisory revenue from fees that are dependent on the successful completion of a merger, acquisition, restructuring or similar transaction or the closing of a fund, our financial advisory business has been negatively impacted and may be further impacted by a reduction in M&A activity. We believe, however, that our simple business model as an independent, unconflicted adviser, in a period of the bankruptcy or merger of many of our larger banking-focused competitors, will create opportunities for us to attract new clients and provide us with excellent recruiting opportunities to further expand our industry expertise and geographic reach.
 
2   Source: Thomson Financial as of April 27, 2009.

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     Merchant banking and other revenues were negative $(3.3) million for the three months ended March 31, 2009 compared to $5.9 million for the three months ended March 31, 2008. The negative revenue reported in the first quarter related to continued declines in the carrying value of the merchant banking investment portfolio.
     Adverse changes in general economic conditions, commodity prices, credit and public equity markets could impact negatively the amount of financial advisory and merchant banking revenue realized by the firm.
Results of Operations
Summary
     Our first quarter 2009 revenues of $61.8 million compare with revenues of $75.4 million for the first quarter of 2008, which represents a decrease of $13.6 million or 18%. The decrease in revenue in the first quarter 2009 revenue as compared to the same period in the prior year was primarily attributable to the decline in the carrying value of our merchant banking investments and to a lesser extent a slight decline in financial advisory revenue due to the completion of fewer assignments. Our first quarter net income of $13.7 million compares with net income of $19.2 million for the first quarter of 2008, which represents a decrease of $5.5 million or 28%. This decrease was primarily attributable to the decline in merchant banking revenue.
      Our quarterly revenues and net income can fluctuate materially depending on the number and size of completed transactions on which we advised, the number and size of merchant banking gains (or losses) and other factors. Accordingly, the revenues and net income in any particular quarter may not be indicative of future results.
Revenues By Source
     The following provides a breakdown of our total revenues by source for the three month periods ended March 31, 2009 and 2008, respectively:
Revenue by Principal Source of Revenue
                                 
    For the Three Months Ended  
    March 31, 2009     March 31, 2008  
    Amount     % of Total     Amount     % of Total  
    (in millions, unaudited)  
Financial advisory fees
  $ 65.1     NM   $ 69.5       92 %
Merchant banking and other revenues
    (3.3 )   NM     5.9       8 %
 
                       
Total revenues
  $ 61.8       100 %   $ 75.4       100 %
Financial Advisory Revenues
     Financial advisory revenues primarily consist of financial advisory and transaction related fees earned in connection with advising companies in mergers, acquisitions, restructurings or similar transactions. We earned $65.1 million in financial advisory revenues in the first quarter of 2009 compared to $69.5 million in the first quarter of 2008, which represents a decrease of 6%. During the quarter we generated revenue from one client that approximated 50% of our total financial advisory revenues for the quarter. By comparison, in 2008 our largest revenue generating client in each of the for quarters ranged from 17% to 28% of the total financial advisory revenues earned in such quarter. The slight decrease in our financial advisory fees in the first quarter of 2009 as compared to the same period in 2008 reflected the completion of fewer assignments. The firm also recognized significant advisory revenue during the quarter from certain strategic advisory assignments, as well as retainer fee revenue from our Financing Advisory & Restructuring Group.
     Completed assignments in the first quarter of 2009 included:

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    The acquisition by Roche Holding Ltd., of the outstanding publicly held interest in Genentech, Inc; and
    The sale by TUI AG of its shipping division Hapag-Lloyd AG to ‘Albert Ballin’ Holding GmbH & Co. KG.
Merchant Banking and Other Revenues
     Our merchant banking fund management activities currently consist primarily of the management of and our investment in Greenhill’s merchant banking funds: GCP I, GCP II, GSAVP and GCP Europe. We generate merchant banking revenue from (i) management fees paid by the funds, (ii) gains (or losses) on our investments in the merchant banking funds and other principal investment activities, and (iii) merchant banking profit overrides. The following table sets forth additional information relating to our merchant banking and other revenues:
                 
    For the Three Months  
    Ended March 31,  
    2009     2008  
    (in millions, unaudited)  
Management fees
  $ 4.5     $ 5.0  
Net realized and unrealized gains (losses) on investments in merchant banking funds
    (7.1 )     1.2  
Net realized and unrealized merchant banking profit overrides
    (0.3 )     (1.1 )
Other realized and unrealized investment income
    (0.4 )     (0.6 )
Interest income
          1.4  
 
           
Total merchant banking and other revenues
  $ (3.3 )   $ 5.9  
     The firm recorded negative $(3.3) million in merchant banking fund management & other revenue in the first quarter of 2009 compared to $5.9 million in the first quarter of 2008. This decrease principally resulted from a decline in the fair market value of our merchant banking funds, lower interest earned on cash balances and a reduction in management fee revenue from our European fund due to the impact of the stronger U.S. dollar. During the first quarter of 2009, our merchant banking funds (and the firm) recognized gains from five (5) of our portfolio companies and recorded losses from nine (9) of our portfolio companies. During the first quarter of 2008, our merchant banking funds (and the firm) recognized gains related to nine (9) of our portfolio companies and recorded losses related to six (6) of our portfolio companies.
     The values at which our investments are carried on our books are adjusted to fair value at the end of each quarter based upon a number of factors including the length of time the investments have been held, the trading price of the shares (in the case of publicly traded securities), restrictions on transfer and other recognized valuation methodologies. Significant changes in general economic conditions, stock markets and commodity prices, as well as capital events at the portfolio companies such as initial public offerings or private sales of securities, may result in significant movements in the fair value of such investments. Accordingly, any such changes or capital events may have a material effect, positive or negative, on our revenues and results of operations. The frequency and timing of such changes or capital events and their impact on our results are by nature unpredictable and will vary from period to period. See Management’s Discussion and Analysis of Financial Condition and Results of Operations — Critical Accounting Policies and Estimates — Merchant Banking Fund Management Revenues.
     Moreover, the aggregate value of our merchant banking investments may fluctuate depending on the timing of the investment and liquidation events and the life cycles of each of the funds. For example, the commitment period for GCP I expired on March 31, 2007, and the investments in GCP I have been largely sold or otherwise monetized, while the commitments made to GCP II, GCPE and GSAVP are still in the process of being invested (with approximately 73% of the commitments in GCP II, 22% of the commitments in GCPE, and 37% of the commitments in GSAVP having been invested as of March 31,

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2009). The time elapsed between making and monetization of investments in our merchant banking funds can vary considerably and the fair value of the investments may fluctuate significantly over that time.
     At March 31, 2009, the firm had principal investments of $105.2 million, nearly all of which either were through investments in our four merchant banking funds, in GHLAC and Iridium. Of that amount, 17% of our investments related to the energy sector, 27% to the financial services sector and 56% to other industry sectors (including the investments in GHLAC and Iridium). We held 97% of our total principal investments in North American companies, with the remainder in European companies. Our investments in companies that have become publicly traded after we first invested in them represented 25% of our total investments.
     In terms of new investment activity during the first quarter of 2009, our funds invested $9.3 million, 13% of which was firm capital. In the same period in 2008, our funds invested $13.7 million, 10% of which was firm capital
     In September 2008, GHLAC announced an agreement to acquire Iridium. The acquisition is subject to stockholder approval, various regulatory approvals and other customary closing conditions. If the acquisition of Iridium is consummated it could provide a significant source of additional merchant banking revenue upon completion and thereafter. However, we can provide no assurances that the transaction will receive stockholder approval and the various regulatory approvals required or that the parties will satisfy the various other closing conditions, nor can we provide assurance that the transaction, if consummated, will be completed on the current terms. In the event that GHLAC is unable to consummate a business combination prior to February 14, 2010 we will write-off our investment of approximately $8.0 million in GHLAC, which we made at the time of its initial public offering. Our investment of $22.9 million in Iridium is in the form of a convertible note which we have the option to convert into units of Iridium upon the later of (i) October 24, 2009 and (ii) the closing or termination of the transaction. The note matures in seven years and bears interest at 5% per annum.
      The investment gains or losses in our investment portfolio may fluctuate significantly over time due to factors beyond our control, such as individual portfolio company performance, equity market valuations, commodity prices and merger and acquisition opportunities. Revenue recognized from gains (or losses) recorded in any particular period are not necessarily indicative of revenue that may be realized and/or recognized in future periods.
Operating Expenses
     We classify operating expenses as compensation and benefits expense and non-compensation expenses.
     Our operating expenses for the first quarter of 2009 were $39.4 million, which compares to $45.4 million of total operating expenses for the first quarter of 2008. This represents a decrease in total operating expenses of $6.0 million or 13%, reflecting principally a decrease in compensation expense and is described in more detail below. The pre-tax income margin was 36% in the first quarter of 2009 compared to 40% for the first quarter of 2008.
     The following table sets forth information relating to our operating expenses, which are reported net of reimbursements of certain expenses by our clients and merchant banking portfolio companies:

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    For the Three Months  
    Ended March 31,  
    2009     2008  
    (in millions, unaudited)  
Employee compensation & benefits expense
  $ 28.4     $ 34.7  
% of revenues
    46 %     46 %
Non-compensation expense
    11.0       10.7  
% of revenues
    18 %     14 %
Total operating expense
    39.4       45.4  
% of revenues
    64 %     60 %
Total income before tax
    22.4       30.0  
Pre-tax income margin
    36 %     40 %
Compensation and Benefits Expenses
     Our employee compensation and benefits expense in the first quarter of 2009 was $28.4 million, which reflects a 46% ratio of compensation to revenues. This amount compares to $34.7 million for the three months ended March 31, 2008, which also reflected a 46% ratio of compensation to revenues. The decrease of $6.3 million or 18% is due to the lower level of revenues in the first quarter of 2009 compared to the comparable period in 2008.
      Our compensation expense is generally based upon revenue and can fluctuate materially in any particular quarter depending upon the amount of revenue recognized as well as other factors. Accordingly, the amount of compensation expense recognized in any particular quarter may not be indicative of compensation expense in a future period .
Non-Compensation Expenses
     Our non-compensation expenses include the costs for occupancy and rental, communications, information services, professional fees, recruiting, travel and entertainment, insurance, depreciation, interest expense and other operating expenses. Reimbursable client expenses are netted against non-compensation expenses.
     Our non-compensation expenses were $11.0 million in the first quarter of 2009, which compared to $10.7 million in the first quarter of 2008, representing an increase of 3%. The increase is principally related the incurrence of non-reimbursable professional fees attributable to an advisory engagement and the absence of foreign currency gains in the first quarter of 2009 as compared to the first quarter of 2008, partially offset by a decrease in interest expense due to lower average borrowings outstanding and lower borrowing rates.
     Non-compensation expenses as a percentage of revenue for the three months ended March 31, 2009 were 18% as compared to 14% for the three months ended March 31, 2008. The increase in non-compensation expenses as a percentage of revenue in the first quarter of 2009 as compared to the same period in 2008 reflects a slightly higher amount of non-compensation expenses spread over lower revenue.
      The firm’s non-compensation expenses as a percentage of revenue can vary as a result of a variety of factors including fluctuation in quarterly revenue amounts, the amount of recruiting and business development activity, the amount of reimbursement of engagement-related expenses by clients, the amount of short term borrowings, interest rate and currency movements and other factors. Accordingly, the non-compensation expenses as a percentage of revenue in any particular quarter may not be indicative of the non-compensation expenses as a percentage of revenue in future periods.
Provision for Income Taxes
     The provision for taxes in the first quarter of 2009 was $8.7 million, which reflects an effective tax rate of approximately 39%. This compares to a provision for taxes in the first quarter of 2008 of $10.9 million based on an effective tax rate of approximately 36% for the period. The decrease in the provision for taxes is due to the lower pre-tax income in the period partially offset by a higher effective tax rate resulting from a greater proportion of our pre-tax income being earned in higher tax rate jurisdictions during the period.

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      The effective tax rate can fluctuate as a result of variations in the relative amounts of advisory and merchant banking income earned in the tax jurisdictions in which the firm operates and invests. Accordingly, the effective tax rate in any particular quarter may not be indicative of the effective tax rate in future periods.
Liquidity and Capital Resources
     Our liquidity position is monitored by our Management Committee, which generally meets monthly. The Management Committee monitors cash, other significant working capital assets and liabilities, debt, principal investment commitments and other matters relating to liquidity requirements. As cash accumulates it is invested in short term investments expected to provide significant liquidity.
     We generate cash from both our operating activities in the form of financial advisory fees and asset management fees and our merchant banking investments in the form of distributions of investment proceeds and profit overrides. We use our cash primarily for operating purposes, compensation of our employees, payment of income taxes, investments in merchant banking funds, payment of dividends, repurchase of shares of our stock and leasehold improvements.
     Because a large portion of the compensation we pay to our employees is distributed in annual bonus awards in February of each year, our net cash balance is generally at its lowest level during the first quarter and accumulates throughout the remainder of the year. In general, we collect our accounts receivable within 60 days except for certain restructuring transactions where collections may take longer due to court-ordered holdbacks and fees generated through our fund placement advisory services, which are generally paid in installments over a period of two years. Our liabilities typically consist of accounts payable, which are generally paid monthly, accrued compensation, which includes accrued cash bonuses and benefits that are paid in the first quarter of the following year to the large majority of our employees, and taxes payable. In February 2009, cash bonuses and benefits of $18.6 million relating to 2008 compensation were paid to our employees. In addition, we paid approximately $11.6 million in early 2009 related to income taxes owed for the year ended December 31, 2008.
     Since our initial public offering we have used a portion of our cash reserves to repurchase shares of our common stock, pay dividends and make investments in our merchant banking funds. Our commitments to our merchant banking funds may require us to fund capital calls on short notice. On the other hand, distributions from our merchant banking funds are generally made shortly after proceeds are received by the funds. We are unable to predict the timing or magnitude of share repurchase opportunities, capital call requirements or distribution of investment proceeds.
     Our merchant banking funds typically invest in privately held companies. The ability of our merchant banking funds to sell or dispose of the securities they own depends on a number of factors beyond the control of the funds, including general economic and sector conditions, stock market conditions, commodity prices, and the availability of financing to potential buyers of such securities, among other issues. As a result we consider our investments illiquid for the short term.
     As of March 31, 2009, we had total commitments (not reflected on our balance sheet) relating to future principal investments in GCP II, GSAVP and GCP Europe and other merchant banking activities of $47.2 million. These commitments are expected to be drawn on from time to time and be substantially invested over a period of up to five years from the relevant commitment dates.
     To provide for working capital needs, facilitate the funding of merchant banking investments and other general corporate purposes we retain a $90.0 million revolving bank loan facility. Borrowings under the facility are secured by all management fees earned by Greenhill Capital Partners, LLC and Greenhill Venture Partners, LLC and any cash distributed in respect of their partnership interests in GCP I, GCP II and GSAVP, as applicable. Interest on borrowings is based on the higher of Prime Rate or 4.0%. The revolving bank loan facility matures on December 31, 2009. At March 31, 2009, $49.4 million of borrowings were outstanding on the loan facility and we were compliant with all loan covenants.

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     During the three months ended March 31, 2009, the Company is deemed to have repurchased 89,182 shares of its common stock at an average price of $64.38 per share in conjunction with the payment of tax liabilities in respect of stock delivered to its employees in settlement of restricted stock units.
     We evaluate our cash operating position on a regular basis in light of current market conditions. Our recurring monthly operating disbursements consist of base compensation expense and other operating expenses, which principally include rent and occupancy, information services, professional fees, travel and entertainment and other general expenses. Our recurring quarterly and annual disbursements consist of tax payments, dividend distributions and cash bonus payments. These amounts vary depending upon our profitability and other factors. We incur non-recurring disbursements for our investments in our merchant banking funds and other principal payments, leasehold improvements and share repurchases. While we believe that the cash generated from operations and funds available from the revolving bank loan facility will be sufficient to meet our expected operating needs, commitments to our merchant banking activities, build-out costs of new office space, tax obligations, share repurchases and common dividends, we may adjust our variable expenses and non-recurring disbursements, if necessary, to meet our liquidity needs. In the event that our needs for liquidity should increase further as we expand our business, we may consider a range of financing alternatives to meet any such needs.
Cash Flows
     In the first three months of 2009, our cash and cash equivalents decreased by $20.5 million from December 31, 2008. We used $17.5 million in operating activities, including $30.8 million from net income after giving effect to the non-cash items and a net decrease in working capital of $48.3 million (principally from an increase in trade account receivables outstanding and the annual payment of bonuses). We used $5.1 million in investing activities, including $5.5 million in new investments in our merchant banking funds and other investments and $0.2 million for the build-out of new office space, partially offset by distributions from investments of $0.6 million. We generated $3.2 million from financing activities, including $22.9 million of the net borrowings from our revolving loan facility, partially offset by $13.9 million for the payment of dividends and $5.7 million for the repurchase of our common stock.
     In the first three months of 2008, our cash and cash equivalents decreased by $104.4 million from December 31, 2007. We used $64.1 million in operating activities, including $29.3 million from net income after giving effect to the non-cash items and a net decrease in working capital of $93.4 million (principally from the annual payment of bonuses and taxes). We generated $0.4 million in investing activities, including $9.5 million from the sale of investments, $4.0 million from distributions received from our merchant banking investments, partially offset by $12.7 million in new investments in our merchant banking funds and $0.4 million primarily for the build-out of new office space. We used $41.6 million for financing activities, including $19.7 million for the net repayment of our revolving loan facility, $8.7 million for the repurchase of our common stock and $13.1 million for the payment of dividends.
Market Risk
     We limit our investments to (1) short term cash investments, which we believe do not face any material interest rate risk, equity price risk or other market risk and (2) principal investments made in GCP, GSAVP, GCP Europe and other merchant banking funds and GHLAC, Iridium and related investments.
     We maintain our cash and cash equivalents with financial institutions with high credit ratings. We may maintain deposits in federally insured financial institutions in excess of federally insured (FDIC) limits and in institutions in which deposits are not insured. However, management believes that the firm is not exposed to significant credit risk due to the financial position of the depository institution in which those deposits are held. We monitor the quality of these investments on a regular basis and may choose to diversify such investments to mitigate perceived market risk. Our short term cash investments are primarily denominated in U.S. dollars, Canadian dollars, pound sterling and Euros, and we face modest foreign currency risk in our cash balances held in accounts outside the United States due to potential currency movements and the associated foreign currency translation accounting requirements. To the extent that the cash balances in local currency exceed our short term obligations, we may hedge our foreign currency exposure.

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     With regard to our principal investments (including, to the extent applicable, our portion of any profit overrides earned on such investments), we face exposure to changes in the estimated fair value of the companies in which we and our merchant banking funds invest, which historically has been volatile. Significant changes in the public equity markets may have a material effect on our results of operations. Volatility in the general equity markets would impact our operations primarily because of changes in the fair value of our merchant banking or principal investments that are publicly traded securities. Volatility in the availability of credit would impact our operations primarily because of changes in the fair value of merchant banking or principal investments that rely upon a portion of leverage to operate. We have analyzed our potential exposure to general equity market risk by performing sensitivity analyses on those investments held by us and in our merchant banking funds which consist of publicly traded securities. This analysis showed that if we assume that at March 31, 2009, the market prices of all public securities were 10% lower, the impact on our operations would be a decrease in revenues of $1.4 million. We meet on a quarterly basis to determine the fair value of the investments held in our merchant banking portfolio and to discuss the risks associated with those investments. The respective Investment Committees manage the risks associated with the merchant banking portfolio by closely monitoring and managing the types of investments made as well as the monetization and realization of existing investments.
     In addition, the reported amounts of our revenues may be affected by movements in the rate of exchange between the euro, pound sterling and Canadian dollar (in which 31% of our revenues for the three months ended March 31, 2009 were denominated) and the dollar, in which our financial statements are denominated. We do not currently hedge against movements in these exchange rates. We analyzed our potential exposure to a decline in exchange rates by performing a sensitivity analysis on our net income. Because of the strengthening in value of the dollar relative to the pound sterling and euro since the first quarter of 2008, on a weighted average basis, our earnings in the first quarter of 2009 were lower than they would have been in the first quarter of 2008 had the value of the dollar relative to those other currencies remained constant. However, we do not believe we face any material risk in this respect.
Critical Accounting Policies and Estimates
     We believe that the following discussion addresses Greenhill’s most critical accounting policies, which are those that are most important to the presentation of our financial condition and results of operations and require management’s most difficult, subjective and complex judgments.
Basis of Financial Information
     Our condensed consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States, which require management to make estimates and assumptions regarding future events that affect the amounts reported in our financial statements and related footnotes, including investment valuations, compensation accruals and other matters. We believe that the estimates used in preparing our condensed consolidated financial statements are reasonable and prudent. Actual results could differ materially from those estimates. Certain reclassifications have been made to prior period information to conform to current period presentation.
     The condensed consolidated financial statements of the firm include all consolidated accounts and Greenhill & Co., Inc. and all other entities in which we have a controlling interest, including Greenhill & Co. International LLP, Greenhill & Co Europe LLP and Greenhill Capital Partners Europe LLP, after eliminations of all significant inter-company accounts and transactions. In accordance with FASB Interpretation No. 46, “Consolidation of Variable Interest Entities” (“FIN 46-R”), the firm consolidates the general partners of our merchant banking funds in which we have a majority of the economic interest. The general partners account for their investment in their merchant banking funds under the equity method of accounting pursuant to Accounting Principles Board Opinion No. 18, “The Equity Method of Accounting for Investments in Common Stock” (“APB 18”). As such, the general partners record their proportionate share of income (loss) from the underlying merchant banking funds. As the merchant banking funds follow investment company accounting and generally record all their assets and liabilities at fair value, the general partners’ investment in merchant banking funds represent an estimation of fair value. The firm does not consolidate the merchant banking funds since the firm, through its general partner and limited partner

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interests, does not have a majority of the economic interest in such funds and under EITF No. 04-5, ''Accounting for an Investment in a Limited Partnership When the Investor Is the Sole General Partner and the Limited Partners Have Certain Rights’’ (''EITF 04-5’’), is subject to removal by a simple majority of unaffiliated third-party investors.
Noncontrolling Interests
     The firm adopted FASB Statement No. 160, ''Noncontrolling Interests in Consolidated Financial Statements — an amendment of Accounting Research Bulletin No. 51’’ (''SFAS 160’’) as of January 1, 2009. SFAS 160 requires reporting entities to present noncontrolling (minority) interests as equity (as opposed to as a liability or mezzanine equity), present income allocated to both noncontrolling interests and common stockholders and provides guidance on the accounting for transactions between an entity and noncontrolling interests. The firm has revised its prior period presentation, as required, to conform to this new pronouncement.
     The portion of the consolidated interests in the general partners of our merchant banking funds, which are held directly by employees of the firm, are represented as noncontrolling interests in equity.
Revenue Recognition
Financial Advisory Fees
     We recognize financial advisory fee revenue for mergers and acquisitions or financing advisory and restructuring engagements when the services related to the underlying transactions are completed in accordance with the terms of the engagement letter. The firm recognizes fund placement advisory fees at the time of the client’s acceptance of capital or capital commitments in accordance with the terms of the engagement letter. Retainer fees are recognized as financial advisory fee revenue over the period in which the related service is rendered.
     Our clients reimburse certain expenses incurred by us in the conduct of financial advisory engagements. Expenses are reported net of such client reimbursements.
Merchant Banking and Other Revenues
     Merchant banking revenues consist of (i) management fees on our merchant banking activities, (ii) gains (or losses) on investments in our merchant banking funds and other principal investment activities and (iii) merchant banking profit overrides.
     Management fees earned from the firm’s merchant banking activities are recognized over the period of related service.
     We recognize revenue on investments in merchant banking funds based on our allocable share of realized and unrealized gains (or losses) reported by such fund. Investments held by merchant banking funds are recorded at estimated fair value. The value of merchant banking fund investments in privately held companies are determined by the general partner of the fund after giving consideration to the cost of the security, the pricing of other sales of securities by the portfolio company, the price of securities of other companies comparable to the portfolio company, purchase multiples paid in other comparable third-party transactions, the original purchase price multiple, market conditions, liquidity, operating results and other qualitative and quantitative factors. Discounts are generally applied to the funds’ privately held investments to reflect the lack of liquidity and other transfer restrictions. Investments held by the merchant banking funds as well as those held by us in publicly traded securities are valued using quoted market prices discounted for any legal or contractual restrictions on sale. Because of the inherent uncertainty of valuations as well as the discounts applied, the estimated fair values of investments in privately held companies may differ significantly from the values that would have been used had a ready market for the securities existed. The values at which our investments are carried on our books are adjusted to estimated fair value at the end of each quarter and the volatility in general economic conditions, stock markets and commodity prices may result in significant changes in the estimated fair value of the investments.

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          We recognize merchant banking profit overrides when certain financial returns are achieved over the life of the fund. Profit overrides are generally calculated as a percentage of the profits over a specified threshold earned by each fund on investments managed on behalf of unaffiliated investors for GCP I and principally all investors except the firm in GCP II, GCP Europe and GSAVP. The profit overrides earned by the firm are recognized on an accrual basis throughout the year in accordance with Method 2 of EITF Issue No. D-96, “Accounting for Management Fees Based on a Formula” (“EITF D-96”). In accordance with Method 2 of EITF D-96 the firm records as revenue the amount that would be due pursuant to the fund agreements at each period end as if the fund agreements were terminated at that date. Overrides are generally calculated on a deal-by-deal basis but are subject to investment performance over the life of each merchant banking fund. We may be required to repay a portion of the overrides paid to the limited partners of the funds in the event a minimum performance level is not achieved by the fund as a whole (we refer to these potential repayments as “clawbacks”). We would be required to establish a reserve for potential clawbacks if we were to determine that the likelihood of a clawback is probable and the amount of the clawback can be reasonably estimated. As of March 31, 2009, we have not reserved for any clawback obligations under applicable fund agreements.
Investments
          The firm’s investments in merchant banking funds are recorded under the equity method of accounting based upon the firm’s proportionate share of the fair value of the underlying merchant banking fund’s net assets. The firm’s holdings of the GHLAC common stock are also recorded under the equity method of accounting. The firm’s other investments are recorded at estimated fair value.
Restricted Stock Units
          In accordance with the fair value method prescribed by FASB Statement No. 123(R), “Share-Based Payment” (“SFAS 123(R)”), which is a revision of FASB Statement No. 123, “Accounting for Stock-Based Compensation”, the fair value of restricted stock units granted to employees with future service requirements are recorded as compensation expense and generally are amortized over a five-year service period following the date of grant. Compensation expense is determined at the date of grant. As the firm expenses the awards, the restricted stock units recognized are recorded within equity. The restricted stock units are reclassed into common stock and additional paid-in capital upon vesting. The firm records dividend equivalent payments, net of estimated forfeitures, on outstanding restricted stock units as a dividend payment and a charge to equity.
Earnings per Share
     The firm calculates earnings per share (“EPS”) in accordance with FASB Statement No. 128, “Earnings per Share” (“SFAS 128”). Basic EPS is calculated by dividing net income allocated to common stockholders by the weighted average number of shares outstanding for the period. Diluted EPS includes the determinants of basic EPS plus the dilutive effect of the common stock deliverable pursuant to restricted stock units for which future service is required as a condition to the delivery of the underlying common stock.
     The firm adopted FASB Staff Position No. EITF 03-6-1, “Determining Whether Instruments Granted in Share-Based Payments Transactions Are Participating Securities” (“FSP EITF 03-6-1”) as of January 1, 2009. FSP EITF 03-6-1 addresses whether instruments granted in share-based payment transactions are participating securities prior to vesting and therefore need to be included in the earnings allocation in calculating earnings per share under the two-class method described in SFAS 128. FSP EITF 03-06-1 requires firms to treat unvested share-based payment awards that have non-forfeitable rights to dividend or dividend equivalents as a separate class of securities in calculating earnings per share. The adoption of this pronouncement did not have a material effect in calculating earnings per share.

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Provision for Taxes
          The firm accounts for taxes in accordance with FASB Statement No. 109, “Accounting for Income Taxes”(“SFAS 109”), which requires the recognition of tax benefits or expenses on the temporary differences between the financial reporting and tax bases of its assets and liabilities.
Market/Credit Risks
          The firm maintains its cash and cash equivalents with financial institutions with high credit ratings. The firm maintains deposits in federally insured financial institutions in excess of federally insured (FDIC) limits and in institutions in which deposits are not insured. However, management believes that the firm is not exposed to significant credit risk due to the financial position of the depository institution in which those deposits are held.
Financial Instruments and Fair Value
          The firm adopted FASB Statement No. 157, “Fair Value Measurements” (“SFAS 157”), as of January 1, 2008. SFAS 157 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy under SFAS 157 are described below:
           Basis of Fair Value Measurement
Level 1 — Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;
Level 2 — Quoted prices in markets that are not active or financial instruments for which all significant inputs are observable, either directly or indirectly;
Level 3 — Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.
     A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. In determining the appropriate levels, the firm performs a detailed analysis of the assets and liabilities that are subject to SFAS 157. At each reporting period, all assets and liabilities for which the fair value measurement is based on significant unobservable inputs or instruments which trade infrequently and therefore have little or no price transparency are classified as Level 3.
Derivative Instruments
     The firm accounts for the GHLAC Warrants, which were obtained in connection with its investment in the GHLAC under FASB Statement No. 133, “Accounting for Derivative Instruments and Hedging Activities” (“SFAS 133”). SFAS 133 establishes accounting and reporting standards for derivative instruments and other hedging activities. In accordance with SFAS 133, the firm records the GHLAC Warrants in the condensed consolidated statement of financial condition at estimated fair value, with changes in estimated fair value recorded in merchant banking revenue in the condensed consolidated statement of income.

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Item 3. Quantitative and Qualitative Disclosures About Market Risk
          We do not believe we face any material interest rate risk, foreign currency exchange risk, equity price risk or other market risk. See “Item 2. Market Risk” above for a discussion of market risks.
Item 4. Controls and Procedures
          Under the supervision and with the participation of the firm’s management, including our Co-Chief Executive Officers and Chief Financial Officer, we conducted an evaluation of the effectiveness of the firm’s disclosure controls and procedures (as defined in Rule 13a-15(e) of the Securities Exchange Act of 1934, as amended (the ''Exchange Act’’)). Based upon this evaluation, our Co-Chief Executive Officers and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of the end of the period covered by this report.
          No change in the firm’s internal control over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) of the Exchange Act) occurred during the period covered by this report that materially affected, or is reasonably likely to materially affect, the firm’s internal control over financial reporting.

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Part II — Other Information
Item 1. Legal Proceedings
          From time to time, in the ordinary course of our business, we are involved in lawsuits, claims, audits, investigations and employment disputes, the outcome of which, in the opinion of the firm’s management, will not have a material adverse effect on our financial position, cash flows or results of operations.
Item 1A: Risk Factors
          There have been no material changes in our risk factors from those disclosed in our 2008 Annual Report on Form 10-K.
Item 2: Unregistered Sales of Equity Securities and Use of Proceeds
          Share Repurchases in the First Quarter of 2009:
                                 
                    Total Number of   Approximate
                    Shares Purchased   Dollar Value of
                    as Part of   Shares that May
    Total Number of           Publicly   Yet Be Purchased
    Shares   Average Price   Announced Plan   under the Plans
Period   Repurchased 1   Paid Per Share   or Programs   or Programs 2
January 1 — January 31
        $           $ 85,000,605  
February 1 — February 28
                       
March 1 — March 31
                       
 
1   Excludes 89,182 shares the Company is deemed to have repurchased at $64.38 from employees in conjunction with the payment of tax liabilities in respect of stock delivered to employees in settlement of restricted stock units.
 
2   Effective January 31, 2009 the Board of Directors’ authorization for the repurchase of up to $100,000,000 in common stock in the open market expired.
Item 3. Defaults Upon Senior Securities
          None.
Item 4. Submission of Matters to a Vote of Security Holders
          At the 2009 annual meeting of stockholders of the Company held on April 22, 2009, the Company’s stockholders elected seven directors each for a one-year term. The tabulation of votes with respect to each nominee for office was as follows:
                 
Nominee   For   Withheld
Robert F. Greenhill
    24,666,763       2,255,009  
Scott L. Bok
    26,349,603       572,169  
Simon A. Borrows
    26,349,595       572,177  
Robert T. Blakely
    26,707,331       224,441  
John C. Danforth
    26,734,658       187,114  
Steven F. Goldstone
    26,725,098       196,674  
Stephen L. Key
    26,725,093       196,679  
          The Audit Committee’s retention of Ernst & Young LLP as the independent registered public accounting firm for the Company for the fiscal year ending December 31, 2009, was ratified by the stockholders by a vote of 26,812,366 for and 109,374 against. There were 29 abstentions.

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Item 5. Other Information
          None.
Item 6. Exhibits
EXHIBIT INDEX
     
Exhibit    
Number   Description
2.1
  Reorganization Agreement and Plan of Merger of Greenhill & Co. Holdings, LLC (incorporated by reference to Exhibit 2.1 to the Registrant’s registration statement on Form S-1/A (No. 333-113526) filed on April 30, 2004).
 
   
3.1
  Amended and Restated Certificate of Incorporation (incorporated by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed on October 29, 2007).
 
   
3.2
  Amended and Restated By-Laws (incorporated by reference to Exhibit 3.2 to the Registrant’s registration statement on Form S-1/A (No. 333-113526) filed on May 5, 2004).
 
   
4.1
  Form of Common Stock Certificate (incorporated by reference to Exhibit 4.1 to the Registrant’s registration statement on Form S-1/A (No. 333-113526) filed on April 30, 2004).
 
   
10.1
  Form of Greenhill & Co, Inc. Transfer Rights Agreement (incorporated by reference to Exhibit 10.1 to the Registrant’s registration statement on Form S-1/A (No. 333-113526) filed on April 30, 2004).
 
   
10.2
  Form of Greenhill & Co., Inc. Employment, Non-Competition and Pledge Agreement (incorporated by reference to Exhibit 10.2 to the Registrant’s registration statement on Form S-1/A (No. 333-113526) filed on April 20, 2004).
 
   
10.4
  Form of U.K. Non-Competition and Pledge Agreement (incorporated by reference to Exhibit 10.4 to the Registrant’s registration statement on Form S-1/A (No. 333-113526) filed on April 20, 2004).
 
   
10.5
  Equity Incentive Plan (incorporated by reference to Exhibit 10.5 to the Registrant’s registration statement on Form S-1/A (No. 333-113526) filed on April 20, 2004).
 
   
10.6
  Form of Indemnification Agreement (incorporated by reference to Exhibit 10.6 to the Registrant’s registration statement on Form S-1/A (No. 333-113526) filed on April 30, 2004).
 
   
10.7
  Tax Indemnification Agreement (incorporated by reference to Exhibit 10.7 to the Registrant’s registration statement on Form S-1/A (No. 333-113526) filed on April 20, 2004).
 
   
10.8
  Loan Agreement (Line of Credit) dated as of December 31, 2003 between First Republic Bank and Greenhill & Co. Holdings, LLC (incorporated by reference to Exhibit 10.8 to the Registrant’s registration statement on Form S-1/A (No. 333-113526) filed on April 20, 2004).
 
   
10.9
  Security Agreement dated as of December 31, 2003 between Greenhill Fund Management Co., LLC and First Republic Bank (incorporated by reference to Exhibit 10.9 to the Registrant’s registration statement on Form S-1/A (No. 333-113526) filed on April 20, 2004).

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Exhibit    
Number   Description
10.10
  Agreement for Lease dated February 18, 2000 between TST 300 Park, L.P. and Greenhill & Co., LLC (incorporated by reference to Exhibit 10.10 to the Registrant’s registration statement on Form S-1/A (No. 333-113526) filed on April 30, 2004).
 
   
10.11
  First Amendment of Lease dated June 15, 2000 between TST 300 Park, L.P. and Greenhill & Co., LLC (incorporated by reference to Exhibit 10.11 to the Registrant’s registration statement on Form S-1/A (No. 333-113526) filed on April 30, 2004).
 
   
10.12
  Agreement for Lease dated April 21, 2000 between TST 300 Park, L.P. and McCarter & English, LLP (incorporated by reference to Exhibit 10.12 to the Registrant’s registration statement on Form S-1/A (No. 333-113526) filed on April 30, 2004).
 
   
10.13
  Assignment and Assumption of Lease dated October 3, 2003 between McCarter & English, LLP and Greenhill & Co., LLC (incorporated by reference to Exhibit 10.13 to the Registrant’s registration statement on Form S-1/A (No. 333-113526) filed on April 30, 2004).
 
   
10.14
  Sublease Agreement dated January 1, 2004 between Greenhill Aviation Co., LLC and Riversville Aircraft Corporation (incorporated by reference to Exhibit 10.14 to the Registrant’s registration statement on Form S-1/A (No. 333-113526) filed on April 30, 2004).
 
   
10.15
  Agreement of Limited Partnership of GCP, L.P. dated as of June 29, 2000 (incorporated by reference to Exhibit 10.15 to the Registrant’s registration statement on Form S-1/A (No. 333-113526) filed on April 30, 2004).
 
   
10.16
  GCP, LLC Limited Liability Company Agreement dated as of June 27, 2000 (incorporated by reference to Exhibit 10.16 to the Registrant’s registration statement on Form S-1/A (No. 333-113526) filed on April 30, 2004).
 
   
10.17
  Amended and Restated Agreement of Limited Partnership of Greenhill Capital, L.P., dated as of June 30, 2000 (incorporated by reference to Exhibit 10.17 to the Registrant’s registration statement on Form S-1/A (No. 333-113526) filed on April 30, 2004).
 
   
10.18
  Amendment to the Amended and Restated Agreement of Limited Partnership of Greenhill Capital, L.P. dated as of May 31, 2004 (incorporated by reference to Exhibit 10.18 to the Registrant’s registration statement on Form S-1/A (No. 333-113526) filed on April 30, 2004).
 
   
10.19
  Amended and Restated Agreement of Limited Partnership of GCP Managing Partner, L.P. dated as of May 31, 2004 (incorporated by reference to Exhibit 10.19 to the Registrant’s registration statement on Form S-1/A (No. 333-113526) filed on April 30, 2004).
 
   
10.20
  Form of Assignment and Subscription Agreement dated as of January 1, 2004 (incorporated by reference to Exhibit 10.20 to the Registrant’s registration statement on Form S-1/A (No. 333-113526) filed on April 30, 2004).
 
   
10.21
  Form of Greenhill & Co., Inc Equity Incentive Plan Restricted Stock Unit Award Notification — Five Year Ratable Vesting (incorporated by reference to Exhibit 10.21 to the Registrant’s Quarterly Report on Form 10-Q for the period ended September 30, 2004).

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Exhibit    
Number   Description
10.22
  Form of Greenhill & Co., Inc Equity Incentive Plan Restricted Stock Unit Award Notification — Five Year Cliff Vesting (incorporated by reference to Exhibit 10.22 to the Registrant’s Quarterly Report on Form 10-Q for the period ended September 30, 2004).
 
   
10.23
  Form of Greenhill & Co., Inc. Equity Incentive Plan Restricted Stock Unit Award Notification — Five Year Ratable Vesting (incorporated by reference to Exhibit 10.23 to the Registrant’s registration statement on Form S-1/A (No. 333-112526) filed on April 30, 2004).
 
   
10.24
  Form of Greenhill & Co., Inc. Equity Incentive Plan Restricted Stock Unit Award Notification — Five Year Cliff Vesting (incorporated by reference to Exhibit 10.24 to the Registrant’s registration statement on Form S-1/A (No. 333-112526) filed on April 30, 2004).
 
   
10.25
  Amended and Restated Agreement of Limited Partnership of Greenhill Capital Partners (Employees) II, L.P. dated as of March 31, 2005 (incorporated by reference to Exhibit 99.2 of the Registrant’s report on Form 8-K filed on April 5, 2005).
 
   
10.26
  Amended and Restated Agreement of Limited Partnership of GCP Managing Partner II, L.P. dated as of March 31, 2005 (incorporated by reference to Exhibit 99.3 of the Registrant’s Current Report on Form 8-K filed on April 5, 2005).
 
   
10.27
  Form of Agreement for Sublease by and between Wilmer, Cutler, Pickering, Hale & Dorr LLP and Greenhill & Co., Inc. (incorporated by reference to Exhibit 10.27 to the Registrant’s Quarterly Report on Form 10-Q for the period ended June 30, 2005).
 
   
10.28
  Form of Greenhill & Co. Equity Incentive Plan Restricted Stock Award Notification — Five Year Ratable Vesting (incorporated by reference to Exhibit 10.28 to the Registrant’s Quarterly Report on Form 10-Q for the period ended September 30, 2005).
 
   
10.29
  Form of Senior Advisor Employment and Non-Competition Agreement (incorporated by reference to Exhibit 10.29 to the Registrant’s Quarterly Report on Form 10-Q for the period ended September 30, 2005).
 
   
10.30
  Form of Agreement for the Sale of the 7 th Floor, Lansdowne House, Berkeley Square, London, among Pillar Property Group Limited, Greenhill & Co. International LLP, Greenhill & Co., Inc. and Union Property Holdings (London) Limited (incorporated by reference to Exhibit 10.30 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2005).
 
   
10.31
  Loan Agreement dated as of January 31, 2006 by and between First Republic Bank and Greenhill & Co., Inc. (incorporated by reference to Exhibit 10.31 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2005).
 
   
10.32
  Form of Agreement of Limited Partnership of GSAV (Associates), L.P. (incorporated by reference to Exhibit 10.35 to the Registrant’s Quarterly Report on Form 10-Q for the period ended March 31, 2006).

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Exhibit    
Number   Description
10.33
  Form of Agreement of Limited Partnership of GSAV GP, L.P. (incorporated by reference to Exhibit 10.35 to the Registrant’s Quarterly Report on Form 10-Q for the period ended March 31, 2006).
 
   
10.34
  Form of First Modification Agreement by and between First Republic Bank and Greenhill & Co., Inc. (incorporated by reference to Exhibit 10.34 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2006).
 
   
10.35
  Form of Second Modification Agreement by and between First Republic Bank and Greenhill & Co., Inc. (incorporated by reference to Exhibit 10.35 to the Registrant’s Quarterly Report on Form 10-Q for the period ended March 31, 2007).
 
   
10.36
  Form of Third Modification Agreement by and between First Republic Bank and Greenhill & Co., Inc. (incorporated by reference to Exhibit 10.36 to the Registrant’s Quarterly Report on Form 10-Q for the period ended June 30, 2007).
 
   
10.37
  Form of Third-Party Security Agreement (Management and Advisory Fees) by and between Greenhill Capital Partners, LLC and First Republic Bank (incorporated by reference to Exhibit 10.37 to the Registrant’s Quarterly Report on Form 10-Q for the period ended June 30, 2007).
 
   
10.38
  Form of Amended and Restated Limited Partnership Agreement for Greenhill Capital Partners Europe (Employees), L.P. (incorporated by reference to Exhibit 10.38 to the Registrant’s Quarterly Report on Form 10-Q for the period ended June 30, 2007).
 
   
10.39
  Form of Amended and Restated Limited Partnership Agreement for GCP Europe General Partnership L.P. (incorporated by reference to Exhibit 10.39 to the Registrant’s Quarterly Report on Form 10-Q for the period ended June 30, 2007).
 
   
10.40
  Form of Fourth Modification Agreement by and between First Republic Bank and Greenhill & Co., Inc. (incorporated by reference to Exhibit 10.40 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2007).
 
   
10.41
  Form of Third-Party Security Agreement (Management and Advisory Fees) by and between Greenhill Venture Partners, LLC and First Republic Bank (incorporated by reference to Exhibit 10.41 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2007).
 
   
10.42
  Form of Reaffirmation of and Amendment to Form of Third-Party Security Agreement (Management and Advisory Fees) by and between Greenhill Capital Partners, LLC and First Republic Bank (incorporated by reference to Exhibit 10.42 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2007).
 
   
10.43
  Amended and Restated Equity Incentive Plan (incorporated by reference to Exhibit 10.43 to the Registrant’s Quarterly Report on Form 10-Q for the period ending March 31, 2008).
 
   
10.44*
  Amended and Restated Equity Incentive Plan.

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Exhibit    
Number   Description
10.45*
  Form of Greenhill & Co. Equity Incentive Plan Restricted Stock Award Notification (MDs) — Five Year Ratable Vesting.
 
   
10.46*
  Form of Greenhill & Co. Equity Incentive Plan Restricted Stock Award Notification (MDs) — Five Year Cliff Vesting.
 
   
10.47*
  Form of Greenhill & Co. Equity Incentive Plan Restricted Stock Award Notification (non-MDs) — Five Year Ratable Vesting.
 
   
31.1*
  Certification of Co-Chief Executive Officer Pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
 
   
31.2*
  Certification of Co-Chief Executive Officer Pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
 
   
31.3*
  Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
 
   
32.1*
  Certification of Co-Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
 
   
32.2*
  Certification of Co-Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
 
   
32.3*
  Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
 
*   Filed herewith.

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Signatures
     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Date: May 7, 2009
         
  GREENHILL & CO., INC.
 
 
  By:   /s/ SCOTT L. BOK    
    Name:   Scott L. Bok   
    Title:   Co-Chief Executive Officer   
 
     
  By:   /s/ SIMON A. BORROWS    
    Name:   Simon A. Borrows   
    Title:   Co-Chief Executive Officer   
 
     
  By:   /s/ RICHARD J. LIEB    
    Name:   Richard J. Lieb   
    Title:   Chief Financial Officer   
 

S-1

Exhibit 10.44
GREENHILL & CO., INC. EQUITY INCENTIVE PLAN
(as amended and restated)
     Section 1 . Purpose. The purposes of this Equity Incentive Plan (as amended and restated) (the “ Plan ”) are to attract, retain and motivate key employees and directors of and consultants and advisors to Greenhill & Co., Inc. (the “ Company ”) and its subsidiaries and to align the interests of key employees, directors, consultants and advisors with shareholders with equity-based compensation and enhanced opportunities for ownership of shares of the Company’s common stock.
     Section 2 . Definitions. The following terms used in the Plan and any agreement entered into pursuant to the Plan shall have the meaning set forth below:
     “ Affiliate ” means (i) any Person that directly, or through one or more intermediaries, controls, or is controlled by, or is under common control with, the Company or (ii) any entity in which the Company has a significant equity interest, as determined by the Committee.
     “ Award ” means any Option, award of Restricted Stock or Restricted Stock Units, Performance Award, Other Stock-Based Award, or any other right, interest or grant relating to Shares or other property granted pursuant to the Plan.
     “ Award Agreement ” means any written agreement, contract or other instrument or document evidencing any Award, which may, but need not be (as determined by the Committee) executed or acknowledged by a Participant as a condition to receiving an Award or the benefits under an Award.
     “ Board ” or “ Board of Directors ” means the Board of Directors of the Company.
     “ Change in Control ” means the consummation of a merger, consolidation, statutory share exchange or similar form of corporate transaction involving the Company or the sale or other disposition of all or substantially all of the assets of the Company to an entity that is not an affiliate or that, in each case, requires shareholder approval under the laws of the Company’s jurisdiction of organization, unless immediately following such transaction, either: (i) at least 50% of the total voting power of the surviving entity or its parent entity, if applicable, is represented by securities of the Company that were outstanding immediately prior to the transaction (or securities into which the Company’s securities were converted or exchanged in such transaction); or (ii) at least 50% of the members of the board of directors (including directors whose election or nomination was approved by the incumbent directors of the Board) of the company resulting from the transaction were members of the Board at the time of

 


 

the Board’s approval of the execution of the initial agreement providing for the transaction.
     “ Code ” means the Internal Revenue Code of 1986, as amended.
     “ Committee ” means the Compensation Committee of the Board, or any successor to such committee, or any other committee of our Board appointed or designated by the Board, in each case, composed of no fewer than two directors each of whom is a “non-Employee director” within the meaning of Rule 16b-3 of the Securities and Exchange Act of 1934, as amended, and an “outside director” within the meaning of Section 162(m) of the Code and the regulations promulgated thereunder.
     “ Covered Employee ” means an individual who is both (i) a “covered employee” within the meaning of Section 162(m)(3) of the Code, or any successor provision thereto and (ii) expected by the Committee to be the recipient of compensation (other than “qualified performance based compensation” as defined in Section 162(m) of the Code) in excess of $1,000,000 for the tax year of the Company with regard to which a deduction in respect of such individual’s Award would be allowed.
     “ Disability ” means the disability of a Participant (i) such that the Participant is considered disabled under any long term disability plan of the Company, or otherwise (ii) as determined by the Committee in its sole discretion.
     “ Eligible Person ” means any full time or part time employee (including an officer or director who is also an employee), consultant or advisor of the Company or any Affiliate selected by the Committee. Other than for awards of Options, “Eligible Person” shall also include any individual to whom an offer of employment has been extended, a member of the Board or a member of the board of directors of a Subsidiary. References to “employment” and related terms in the Plan shall include the provision of services in any capacity.
     “ Fair Market Value ” means the closing sale price of the Shares, as reported on the composite tape of New York Stock Exchange, or any other reporting system selected by the Committee on the relevant dates, or, if no sale of Shares is reported for that date, on the date or dates that the Committee determines, in its sole discretion, to be appropriate for purposes of the valuation.
     “ Incentive Stock Option ” means any Option designated as an incentive stock option within the meaning of Section 422 of the Code and qualifying thereunder.
     “ Non-Qualified Stock Option ” means an Option that is not an Incentive Stock Option.

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     “ Option ” means an option to purchase a Share or Shares granted under the Plan.
     “ Other Stock-Based Award ” means an Award granted pursuant to Section 9 of the Plan.
     “ Participant ” means a person who has been granted an Award under the Plan which remains outstanding, including a person who is no longer an Eligible Person.
     “ Performance Award ” means an Award structured in accordance with Section 10 of the Plan.
     “ Performance Period ” means the period established by the Committee at the time any Performance Award is granted or at any time thereafter during which any performance goals specified by the Committee with respect to such Award are measured.
     “ Person ” means an individual, corporation, partnership, association, trust, limited liability company or any other entity or organization, including a government or political subdivision or an agency, unit or instrumentality thereof.
     “ Restricted Stock ” means an award of shares which are subject to certain restrictions and to a risk of forfeiture.
     “ Restricted Stock Unit ” means a contractual right granted under Section 8 that is denominated in Shares. Each Restricted Stock Unit represents a right to receive the value of one Share upon the terms and conditions set forth in the Plan and the applicable Award Agreement.
     “ Retirement ” means termination of employment on or after the date the Participant has (i) attained age 65 and completed at least two years of service; (ii) completed at least twelve years of service as a managing director of the Company or its predecessors, (iii) has completed at least twenty years of service with the Company or its predecessors or (iv) effective for retirement on or after May 11, 2014, attained age 55 and completed at least five years of service as a managing director of the Company.
     “ Share ” means a share of common stock of the Company, par value $0.01.
     “ Subsidiary ” means a company where 50% or more of its issued stock or other membership interests is owned directly or indirectly by the Company at the time an Award is issued under the Plan.
     “ Substitute Award ” means an Award granted in assumption of, or in substitution for, an outstanding equity award previously granted by a business or

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entity all or a portion of which is acquired by the Company or any Affiliate or with which the Company or an Affiliate combines.
     Section 3 . Administration. (a) The Plan will be administered by the Committee. To the extent permitted by applicable law, the Committee or the Board may delegate to one or more officers of the Company the authority to grant awards except that such delegation shall not be applicable to any Award for a person then covered by Section 16 of the Act. Subject to and consistent with the provisions of the Plan, the Committee (or its delegate or a delegate of the Board) will have full power and authority, in its discretion, and without limitation, to: (i) select Eligible Persons to become Participants; (ii) determine the type and number of Awards to be granted to each Participant; (iii) determine the number of Shares to be covered by each Award; (iv) determine the dates on which Awards may be exercised and on which the risk of forfeiture or deferral period relating to Awards shall lapse or terminate, and the acceleration of any such dates; (v) determine the expiration date of any Award; (vi) determine whether, to what extent, and under what circumstances an Award may be settled, or the exercise price of an Award may be paid, in cash, Shares, other Awards, or other property; (vii) determine any other terms and conditions of, and all other matters relating to, Awards; (viii) prescribe Award Agreements (such Award Agreements need not be identical for each Participant) and amendments thereto; (ix) construe and interpret the Plan and the respective Award Agreements entered into pursuant to the Plan; and (x) make all other determinations necessary or advisable for administering the Plan. All decisions and determinations of the Committee with respect to the administration and interpretation of the Plan shall be final, conclusive, and binding upon all persons interested in the Plan, including Participants, beneficiaries, and other persons claiming rights from or through a Participant, and shareholders.
     (b) To the fullest extent permitted by law, each member and former member of the Committee and each person to whom the Committee or the Board delegates or has delegated authority under this Plan shall be entitled to indemnification by the Company against and from any loss, liability, judgment, damage, cost and reasonable expense incurred by such member, former member or other person by reason of any action taken, failure to act or determination made in good faith under or with respect to this Plan.
     Section 4. Shares Subject to the Plan; Limits on Awards.
     (a) Shares to be issued under the Plan may consist, in whole or in part, of authorized and unissued Shares, treasury Shares or Shares purchased by the Company in the open market or otherwise. Subject to adjustment made in accordance with Section 12 of the Plan, the maximum number of Shares that may be issued under the Plan will not exceed 30,000,000. Notwithstanding the foregoing and subject to adjustment as provided in Section 12 of the Plan, under the Plan no Covered Employee may be granted in any calendar year (i) Options that relate to more than 700,000 Shares, (ii) Performance Awards denominated in Shares that relate to more than 700,000 Shares and (iii) Performance Awards

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denominated in cash or valued with reference to property other than Shares with a maximum dollar value payable equal to $25,000,000.
     (b) Shares subject to an Award (other than a Substitute Award) that is canceled, expired, forfeited, settled in cash or otherwise terminated without a delivery of Shares to the Participant will again be available for Awards, and Shares withheld in payment of the exercise price or taxes relating to an Award and Shares equal to the number surrendered in payment of any exercise price or taxes relating to an Award shall be deemed to constitute Shares not delivered to the Participant and shall be deemed to again be available for Awards under the Plan. Shares underlying Substitute Awards shall not reduce the number of Shares available for delivery under the Plan.
     Section 5 . Eligibility. Awards may be granted only to Eligible Persons who are selected to be Participants by the Committee in accordance with the provisions of the Plan. Holders of equity-based awards granted by a business or entity all or a portion of which is acquired by the Company or any Affiliate or with which the Company or an Affiliate combines are eligible to receive Substitute Awards hereunder.
     Section 6. Options. The Committee is authorized to grant Options to Participants on the following terms and conditions and with such additional terms and conditions, not inconsistent with the provisions of the Plan, as the Committee shall determine.
     (a)  Exercise Price. The exercise price of each Option granted under the Plan shall be determined by the Committee and shall not be less than the Fair Market Value of a Share on the date of grant of such Option. Notwithstanding the foregoing, any Substitute Award may be granted with an exercise price per Share other than as required above.
     (b)  Term and Termination of Options . The term of each Option, together with the effect of termination of employment or service by a Participant on such term, will be determined by the Committee, but in no event will an Option be exercisable, either in whole or in part, after the expiration of ten years from the date of grant of such Option.
     (c)  Exercise of Option. Each Option shall be exercisable at such times and subject to such terms and conditions as the Committee may, in its sole discretion, specify in the applicable Award Agreement or thereafter. The Committee may impose such conditions with respect to the exercise of Options, including without limitation, any conditions relating to the application of federal or state securities laws, as it may deem necessary or advisable and shall determine the time in which Options shall be exercisable in whole or in part and the methods by which such exercise price may be paid or deemed to be paid and the form of such payment, including, without limitation, cash, Shares, or other property (including notes and other contractual obligations of Participants to make

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payment on a deferred basis, such as through “cashless exercise” arrangements, to the extent permitted by applicable law), and the methods by or forms in which Shares will be delivered or deemed to be delivered in satisfaction of Options to Participants.
     Section 7 . Incentive Stock Options. In accordance with rules and procedures established by the Committee, the aggregate Fair Market Value (determined as of the time of grant) of the Shares with respect to which Incentive Stock Options held by any Participant which are exercisable for the first time by such Participant during any calendar year under the Plan (and under any other benefit plans of the Company or any Subsidiary) shall not exceed $100,000 or, if different, the maximum limitation in effect at the time of grant under Section 422 of the Code, or any successor provision, and any regulations promulgated thereunder. Incentive Stock Options shall be granted only to participants who are employees of the Company or a Subsidiary of the Company. The terms of any Incentive Stock Option granted hereunder shall comply in all respects with the provisions of Section 422 of the Code, or any successor provision, and any regulations promulgated thereunder.
     Section 8 . Restricted Stock and Restricted Stock Unit Awards. The Committee is authorized to grant Restricted Stock and/or Restricted Stock Units to Participants.
     (a) The Awards granted under this Section 8 shall be subject to such restrictions as the Committee may impose (including, without limitation, any limitation on the right to vote Shares underlying Restricted Stock Awards or the right to receive any dividend, other right or property), which restrictions may lapse separately or in combination at such time or times, in such installments or otherwise, as the Committee may deem appropriate.
     (b) Any Award of Restricted Stock or Restricted Stock Units may be evidenced in such manner as the Committee may deem appropriate, including, without limitation, book-entry registration or issuance of a stock certificate or certificates. In the event any stock certificate is issued in respect of Shares underlying a Restricted Stock Award, such certificate shall be registered in the name of the Participant and shall bear an appropriate legend referring to the terms, conditions, and restrictions applicable to such Shares.
     (c) If the Committee intends that an Award of Restricted Stock or Restricted Stock Units shall constitute or give rise to “qualified performance based compensation” under Section 162(m) of the Code, such Award of Restricted Stock or Restricted Stock Units may be structured in accordance with Section 10 and any such Award of Restricted Stock or Restricted Stock Units shall be considered a Performance Award for purposes of this Plan.
     Section 9 . Other Stock-Based Awards. The Committee is authorized, subject to limitations under applicable law, to grant to Participants such other

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Awards that may be denominated or payable in, valued in whole or in part by reference to, or otherwise based on, or related to, Shares or factors that may influence the value of Shares, including, without limitation, convertible or exchangeable debt securities, other rights convertible or exchangeable into Shares, purchase rights for Shares, Awards with value and payment contingent upon performance of the Company or business units thereof or any other factors designated by the Committee. The Committee shall determine the terms and conditions of such Awards. Shares delivered pursuant to an Award in the nature of a purchase right granted under this Section 9 shall be purchased for such consideration, paid for at such times, by such methods, and in such forms, including, without limitation, cash, Shares, other Awards, notes, or other property, as the Committee shall determine. Cash awards, as an element of or supplement to any other Award under the Plan, may also be granted pursuant to this Section 9.
     Section 10 . Performance Awards.
     (a)  General . Performance Awards may be denominated as a cash amount, number of Shares, or a combination thereof and are awards which may be earned upon achievement or satisfaction of performance conditions specified by the Committee. In addition, the Committee may specify that any other Award shall constitute a Performance Award by conditioning the right of a Participant to exercise the Award or have it settled, and the timing thereof, upon achievement or satisfaction of such performance conditions as may be specified by the Committee. The Committee may use such business criteria and other measures of performance as it may deem appropriate in establishing any performance conditions.
     (b)  Performance Awards Granted to Covered Employees. If the Committee determines that a Performance Award to be granted to an Eligible Person who is designated by the Committee as likely to be a Covered Employee should qualify as “performance-based compensation” for purposes of Section 162(m) of the Code, the grant, exercise and/or settlement of such Performance Award shall be contingent upon achievement of a preestablished performance goal and other terms set forth in this Section 10(b). The Committee shall have the power to impose such other restrictions on Awards subject to this Section 10(b) as it may deem necessary or appropriate to ensure that such Awards satisfy all requirements for “performance-based compensation” within the meaning of Section 162(m)(4)(C) of the Code, or any successor provision thereto.
     (c)  Performance Goals Generally. The performance goals for such Performance Awards shall consist of one or more business criteria and a targeted level or levels of performance with respect to each of such criteria, as specified by the Committee consistent with this Section 10. The performance goals shall be objective, shall be pre-established by the Committee and shall otherwise meet the requirements of Section 162(m) of the Code and regulations thereunder. The Committee may determine that such Performance Awards shall be granted, exercised and/or settled upon achievement of any one performance goal or that

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two or more of the performance goals must be achieved as a condition to grant, exercise and/or settlement of such Performance Awards. Performance goals may differ for Performance Awards granted to any one Participant or to different Participants.
     (d)  Business Criteria. One or more of the following business criteria for the Company, on a consolidated basis, and/or for specified subsidiaries or affiliates or other business units of the Company shall be used by the Committee in establishing performance goals for such Performance Awards: (i) earnings per share, (ii) return on average common equity, (iii) pre-tax income, (iv) pre-tax operating income, (v) net revenues, (vi) net income, (vii) profits before taxes, (viii) book value per share, (ix) stock price, (x) earnings available to common shareholders, (xi) ratio of compensation and benefits to net revenues and (xii) execution and origination of assignments directly related to the individual covered employee. Such targets may relate to the Company as a whole, or to one or more units thereof, and may be measured over such periods, as the Committee shall determine. The targeted level or levels of performance with respect to such business criteria may be established at such levels and in such terms as the Committee may determine, in its discretion, including in absolute terms, as a goal relative to performance in prior periods, or as a goal compared to the performance of one or more comparable companies or an index covering multiple companies.
     (e)  Settlement of Performance Awards; Other Terms. Settlement of Performance Awards shall be in cash, Shares, other Awards or other property, or a combination thereof, in the discretion of the Committee. Performance Awards will be distributed only after the end of the relevant Performance Period. The Committee may, in its discretion, increase or reduce the amount of a settlement otherwise to be made in connection with such Performance Awards, but may not exercise discretion to increase any such amount payable to a Covered Employee in respect of a Performance Award subject to Paragraph (b) above. Any settlement which changes the form of payment from that originally specified shall be implemented in a manner such that the Performance Award and other related Awards do not, solely for that reason, fail to qualify as “performance-based compensation” for purposes of Section 162(m) of the Code. The Committee shall specify the circumstances in which such Performance Awards shall be paid or forfeited in the event of termination of employment by the Participant.
     Section 11 . Termination of Employment . Unless otherwise determined by the Committee or provided by the Committee in the applicable Award Agreement, the following provisions shall apply:
     (a) Upon a termination of employment as a result of death, Disability or Retirement:
     (i) any Restricted Stock Award or Restricted Stock Unit Award then held by the Participant will be immediately accelerated and become fully vested, exercisable and payable, and

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     (ii) any Option then held by the Participant will be immediately accelerated and become fully vested, exercisable and payable and will expire on the earlier of (A) the date the option would have expired had the Participant continued in such employment and (B) one year after the date such Participant’s service ceases.
     (b) Upon termination of employment by the Company for cause (as determined by the Committee in its sole discretion):
     (i) any Restricted Stock Award or Restricted Stock Unit Award then held by the Participant whose restrictions have not lapsed will automatically be forfeited in full and canceled by the Company upon such termination of employment, and
     (ii) any Option then held by the Participant, to the extent exercisable, will automatically be forfeited in full and canceled by the Company upon such termination of employment.
     (c) Upon a termination of employment by the Company without cause (as determined by the Committee in its sole discretion) within two years following the occurrence of a Change in Control or upon a termination of employment by the Company without cause (as determined by the Committee in its sole discretion) six months prior to the occurrence of a Change in Control if the Committee reasonably determines in its sole discretion that such termination was at the behest of the acquiring entity (each such termination of employment deemed to be a termination of employment “in connection with” the occurrence of a Change in Control):
     (i) any Restricted Stock Award or Restricted Stock Unit Award then held by the Participant will be immediately accelerated and become fully vested, exercisable and payable, and
     (ii) any Option then held by the Participant will be immediately accelerated and become fully vested, exercisable and payable shall automatically expire on the earlier of (A) the date the Option would have expired had the Participant continued in such employment and (B) one year after the date such Participant’s service ceases.
     (d) Upon termination of employment for any reason other than death, Disability, Retirement or termination of employment by the Company for cause (as determined by the Committee in its sole discretion) or in connection with the occurrence of a Change in Control:
     (i) any time vesting Restricted Stock Award or time vesting Restricted Stock Unit Award then held by the Participant whose restrictions have not lapsed will automatically be forfeited in full and canceled by the Company upon such termination of employment,

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     (ii) any Option then held by the Participant, to the extent exercisable, shall automatically expire on the earlier of (A) the date the Option would have expired had the Participant continued in such employment and (B) one hundred and eighty days (or ninety days in the case of an Option that is intended to qualify as an Incentive Stock Option) after the date the such Participant’s service ceases, and
     (iii) any Restricted Stock Award or Restricted Stock Unit Award then held by the Participant which is not then payable and remains subject to achievement of performance vesting goals will be paid in accordance with its terms at the time such Award would have been payable if the termination of employment had not occurred.
     Section 12 . Adjustment. In the event that the Committee shall determine that any dividend or other distribution (whether in the form of cash, Shares, other securities, or other property), recapitalization, forward or reverse split, reorganization, merger, consolidation, spin-off, combination, repurchase, share exchange, liquidation, dissolution or other similar corporate transaction or event affects Shares such that an adjustment is appropriate under the Plan, then the Committee shall, in such manner as it may deem equitable, adjust any or all of (i) the number and kind of Shares which may be delivered in connection with Awards granted thereafter, (ii) the number and kind of Shares by which annual per person Award limitations are measured under Section 4(a), (iii) the number and kind of Shares subject to or deliverable in respect of outstanding Awards and (iv) the exercise price, grant price or purchase price relating to any Award or, if deemed appropriate, the Committee may make provision for a payment of cash or property to the holder of an outstanding Option. In addition, the Committee is authorized to make adjustments in the terms and conditions of, and the criteria included in, Awards (including Performance Awards and performance goals) in recognition of unusual or nonrecurring events (including, without limitation, events described in the preceding sentence, as well as acquisitions and dispositions of businesses and assets) affecting the Company, any Subsidiary or Affiliate or other business unit, or the financial statements of the Company or any Subsidiary or Affiliate, or in response to changes in applicable laws, regulations, accounting principles, tax rates and regulations or business conditions or in view of the Committee’s assessment of the business strategy of the Company, any Subsidiary or Affiliate or business unit thereof, performance of comparable organizations, economic and business conditions, personal performance of a Participant, and any other circumstances deemed relevant.
     Section 13 . Change In Control. Subject to Section 11 of this Agreement and except as otherwise provided in the applicable Award Agreement, upon the occurrence of a Change in Control, the Committee shall determine whether outstanding Options under the Plan shall become fully exercisable and whether outstanding Awards (other than Options) under the Plan shall become fully vested and payable.

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     Section 14 . Compliance with Laws; Transferability.
     (a) The Company may, to the extent deemed necessary or advisable by the Committee, postpone the issuance or delivery of Shares or payment of other benefits under any Award until completion of such registration or qualification of such Shares or other required action under any federal or state law, rule or regulation, listing or other required action with respect to any stock exchange or automated quotation system upon which the Shares or other securities of the Company are listed or quoted, or compliance with any other obligation of the Company, as the Committee may consider appropriate, and may require any Participant to make such representations, furnish such information and comply with or be subject to such other conditions as it may consider appropriate in connection with the issuance or delivery of Shares or payment of other benefits in compliance with applicable laws, rules, and regulations, listing requirements, or other obligations.
     (b)  Limits on Transferability; Beneficiaries. Except as the Committee may otherwise determine from time to time, (i) no Award and no right under any Award shall be assignable, alienable, saleable or transferable by a Participant otherwise than by will or by the laws of descent and distribution; provided , however , that, if so determined by the Committee, a Participant may, in the manner established by the Committee, designate a beneficiary or beneficiaries to exercise the rights of the Participant, and to receive any property distributable, with respect to any Award upon the death of the Participant; (ii) each Award, and each right under any Award, shall be exercisable during the Participant’s lifetime only by the Participant or, if permissible under applicable law, by the Participant’s guardian or legal representative; and (iii) no Award and no right under any such Award, may be pledged, alienated, attached, or otherwise encumbered, and any purported pledge, alienation, attachment or encumbrance thereof shall be void and unenforceable against the Company. The provisions of this Section 14(b) shall not apply to any Award which has been fully exercised, earned or paid, as the case may be, and shall not preclude forfeiture of an Award in accordance with the terms thereof.
     Section 15 . Certain Tax Provisions.
     (a)  Withholding . The Company and any Subsidiary or Affiliate is authorized to withhold from any Award granted, any payment relating to an Award under the Plan, including from a distribution of Shares, or any payroll or other payment to a Participant, amounts of withholding and other taxes due or potentially payable in connection with any transaction involving an Award, and to take such other action as the Committee may deem advisable to enable the Company and Participants to satisfy obligations for the payment of withholding taxes and other tax obligations relating to any Award. This authority shall include authority to withhold or receive Shares or other property and to make cash payments in respect thereof in satisfaction of a Participant’s withholding obligations, either on a mandatory or elective basis in the discretion of the

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Committee. Notwithstanding any other provision of the Plan, only the minimum amount of Shares deliverable in connection with an Award necessary to satisfy statutory withholding requirements will be withheld.
     (b)  Requirement of Notification Upon Disqualifying Disposition Under Code Section 421(b) . If any Participant shall make any disposition of Shares delivered pursuant to the exercise of an Incentive Stock Option under the circumstances described in Section 421(b) of the Code, such Participant shall notify the Company of such disposition within ten days thereof.
     (c)  Section 409A of the Code . With respect to Awards subject to Section 409A of the Code, if any, the Plan is intended to comply with the requirements of Section 409A, and the provisions hereof shall be interpreted in a manner that satisfies the requirements of Section 409A and the related regulations, and the Plan shall operate accordingly. If any provision of the Plan or any term or condition of any Award would otherwise frustrate or conflict with this intent, the provision, term or condition will be interpreted and deemed amended so as to avoid this conflict.
     Section 16 . General Provisions.
     (a) Neither the Plan nor any action taken hereunder shall be construed as (i) giving any Eligible Person or Participant the right to continue as an Eligible Person or Participant or in the employ or service of the Company or a Subsidiary or Affiliate, (ii) interfering in any way with the right of the Company or a Subsidiary or Affiliate to terminate any Eligible Person’s or Participant’s employment or service at any time (subject to the terms and provisions of any separate written agreements), (iii) giving an Eligible Person or Participant any claim to be granted any Award under the Plan or to be treated uniformly with other Participants and employees, or (iv) conferring on a Participant any of the rights of a shareholder of the Company unless and until the Participant is duly issued or transferred Shares in accordance with the terms of an Award or an Option is duly exercised. Except as expressly provided in the Plan and an Award Agreement, neither the Plan nor any Award Agreement shall confer on any person other than the Company and the Participant any rights or remedies thereunder.
     (b) The prospective recipient of any Award under the Plan shall not, with respect to such Award, be deemed to have become a Participant, or to have any rights with respect to such Award, until and unless such recipient shall have received or executed (if execution is required) an Award Agreement or other instrument evidencing the Award and delivered a copy thereof to the Company, and otherwise complied with the then applicable terms and conditions.
     (c) The Committee shall have full power and authority to determine whether, to what extent and under what circumstances any Award shall be canceled or suspended. In addition, all outstanding Awards to any Participant shall be canceled if the Participant, without the consent of the Company, while

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employed by the Company or after termination of such employment, establishes a relationship with a competitor of the Company or engages in activity which is in conflict with or adverse to the interest of the Company, as determined under the Company’s non-competition policy, as in effect from time to time.
     (d) Subject to applicable law, the Committee shall be authorized to establish procedures pursuant to which the payment of any Award may be deferred, either automatically, or at the election of the Committee or a Participant. Subject to the provisions of the Plan and any Award Agreement, the recipient of the Award (including, without limitation, any deferred Award) may, if so determined by the Committee, be entitled to receive, currently or on a deferred basis, cash dividends, or cash payments in amounts equivalent to cash dividends on Shares (“dividend equivalents”), with respect to the number of Shares covered by the Award, as determined by the Committee, in its sole discretion, and the Committee may provide that such amounts (if any) shall be deemed to have been reinvested in additional Shares or otherwise reinvested.
     (e) If any provision of this Plan is or becomes or is deemed invalid, illegal or unenforceable in any jurisdiction, or would disqualify the Plan or any Award under any law deemed applicable by the Committee, such provision shall be construed or deemed amended to conform to applicable laws or if it cannot be construed or deemed amended without, in the determination of the Committee, materially altering the intent of the Plan, it shall be stricken and the remainder of the Plan shall remain in full force and effect.
     (f) Awards may be granted to employees of the Company or any Subsidiary or Affiliate who are foreign nationals or employed outside the United States, or both, on such terms and conditions different from those applicable to Awards to those employees employed in the United States as may, in the judgment of the Committee, be necessary or desirable in order to recognize differences in local law or tax policy. The Committee also may impose conditions on the exercise or vesting of Awards in order to minimize the Company’s obligation with respect to tax equalization for employees of the Company or any Subsidiary or Affiliate on assignments outside their home country.
     Section 17 . Effective Date; Amendment and Termination.
     (a) The Plan shall become effective upon its adoption by the Board on May 4, 2004.
     (b) Unless the Plan will have been previously terminated by the Board, the Plan will terminate ten years from the date of its adoption. The Board will have the right, at any time to suspend, amend, alter, discontinue or terminate the Plan, provided, however that no such action shall be made without shareholder approval if such approval is necessary to qualify for or comply with any tax or regulatory requirement for which or with which the Board deems it necessary or

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desirable to qualify or comply. No termination of the Plan or action by the Board in amending or suspending the Plan may materially impair the rights of a Participant under any outstanding Award, without the consent of the affected Participant, except any such amendment made to cause the Plan to comply with applicable law, stock exchange rules and regulations or accounting or tax rules and regulations.
     (c) The Committee may waive any conditions or rights under, amend any terms of, or amend, alter, suspend, discontinue or terminate, any Award theretofore granted, prospectively or retroactively, without the consent of any Participant or holder of beneficiary of any Award, provided, however , that no such action shall impair the rights of a Participant or holder of beneficiary under any Award theretofore granted under the Plan.
     Section 18 . Governing Law. The Plan will be governed by and construed in accordance with the law of the State of New York.

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Exhibit 10.45
GREENHILL & CO., INC. EQUITY INCENTIVE PLAN
RESTRICTED STOCK UNIT AWARD NOTIFICATION
Greenhill & Co., Inc., a Delaware corporation (the “ Company ”), hereby grants to the “ Participant ” this Award of Restricted Stock Units (“ RSUs ”) pursuant to the Greenhill & Co., Inc., Equity Incentive Plan (the “ Plan ”) upon the following terms and conditions:
     
 
  Name of Participant :
 
   
 
  Grant Date :
 
   
 
  Number of RSUs :
1.   This Award is subject to all terms and conditions of this Notification and the Plan. The terms of the Plan are hereby incorporated by reference. Capitalized terms not otherwise defined herein shall have the meaning assigned to such term in the Plan. The term “ Notification ” means this Notification.
 
2.   Each RSU represents a right to a future payment equal to the Fair Market Value of one Share at the time of such payment. Such payment may, at the Committee’s election be in cash or Shares or a combination thereof.
 
3.   To the extent dividends are paid on Shares while the RSUs remain outstanding, you shall be entitled to receive at the time such dividends are paid (subject to your continued employment as of the relevant dividend payment date), cash payments in amount equivalent to cash dividends on Shares with respect to the number of Shares covered by the RSUs. If you incur a termination of employment prior to the payment of Shares underlying your vested RSUs but subsequent to the applicable RSUs vesting date, as set forth in Paragraph 4 below, you shall be entitled to receive with respect to such Shares underlying your vested RSUs cash payments in amount equivalent to cash dividends on Shares regardless of whether you continue to be employed as of the relevant dividend payment date. If you incur a termination of employment under circumstances in which, pursuant to the provisions of the Plan and this Award, Shares underlying this Award are forfeited, any dividend equivalent cash payments made pursuant to this paragraph with respect to the Unvested Dividend Portion, as hereinafter defined, of the forfeited Shares shall be required to be repaid to the Company by you promptly following your termination of employment. The “Unvested Dividend Portion” of the forfeited Shares shall be one minus the portion of the Award that has been recognized as an expense in the Company’s financial statements.
 
4.   Subject to your continued employment as of the relevant vesting date (unless otherwise provided under the terms and conditions of the Plan or this Notification), in accordance with Paragraph 2 above you shall be entitled to receive (and the Company shall deliver to you) within 75 days following the relevant vesting date set forth below, the number of Shares

 


 

    underlying the RSUs (or a cash payment therefor) as of the dates set forth below in accordance with the following schedule:
         
 
  Vesting Dates =   20% of the Shares underlying the RSUs on January 1st of each of the first, second, third, fourth and fifth calendar years following the grant date.
5.   Notwithstanding Section 11(a) of the Plan, if the Participant terminates employment for reason of Retirement, any unvested RSUs hereunder as of the date of such termination shall automatically be forfeited and cancelled by the Company; provided, however , if rather than terminating employment for reason of Retirement, the Participant offers to convert to Senior Advisor status pursuant to the terms of the Senior Advisor Employment and Non-Competition Agreement, the form of which is attached hereto, this Award will continue to vest in accordance with the schedule set forth in paragraph 4 above subject to the terms of the Plan, this Notification and the Senior Advisor Employment and Non-Competition Agreement the terms of which shall be incorporated herein by reference.
 
6.   In accordance with Section 15(a) of the Plan, the Committee may in its sole discretion withhold from the payment to you hereunder a sufficient amount (in cash or Shares) to provide for the payment of any taxes required to be withheld by federal, state or local law with respect to income resulting from such payment.
 
7.   An RSU does not represent an equity interest in the Company, and carries no voting rights. You will not have any rights of a shareholder with respect to the RSUs until the Shares have been delivered to you.
 
8.   Notices hereunder and under the Plan, if to the Company, shall be delivered to the Plan Administrator (as so designated by the Company) or mailed to the Company’s principal office, Greenhill & Co., Inc., 300 Park Avenue, New York, New York, 10022, attention of the Plan Administrator, or, if to you, shall be delivered to you or mailed to your address as the same appears on the records of the Company.
 
9.   All decisions and interpretations made by the Board of Directors or the Committee with regard to any question arising hereunder or under the Plan shall be binding and conclusive on all persons. In the event of any inconsistency between the terms hereof and the provisions of this Notification and the Plan, this Notification shall govern.
 
10.   By accepting this Award, you acknowledge receipt of a copy of the Plan, and agree to be bound by the terms and conditions set forth in this Notification and the Plan, as in effect from time to time.
 
11.   By accepting this Award, you further acknowledge that the federal securities laws and/or the Company’s policies regarding trading in its securities may limit or restrict your right to buy or sell Shares, including, without limitation, sales of Shares acquired in connection with your

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    RSUs. You agree to comply with such federal securities law requirements and Company policies, as such laws and policies are amended from time to time.

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12.   This Notification shall be governed by the laws of the state of New York without giving effect to its choice of law provisions.
             
    GREENHILL & CO., INC.
 
           
 
  By:        
 
  Name:  
 
Harold J. Rodriguez, Jr.
   
 
  Title:   Treasurer    
     If you would like to designate a beneficiary to exercise your rights under this Notification in the event of your death, please complete your designation in the space provided below, as well as please sign and print your name and date in the space provided below, and return this Notification to the attention of Harold J. Rodriguez, Jr.
             
Beneficiary:
           
 
 
 
 
 
Participant name (print):
   
 
           
 
      Date:                                                                   

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Exhibit A
FORM OF SENIOR ADVISOR EMPLOYMENT AND
NON-COMPETITION AGREEMENT
     This Senior Advisor Employment and Non-Competition Agreement (this “ Agreement ”) dated as of ___, ___is entered into by and among [ Name of Employee ] (the “ Senior Advisor ”) and Greenhill & Co., Inc., a Delaware corporation (the “ Company ”).
     WHEREAS, the Senior Advisor is an employee of the Company and is a participant in the Company’s Equity Incentive Plan (the “ Plan ”), with outstanding award(s) under the Plan;
     WHEREAS, the Senior Advisor is eligible for Retirement (as defined under the Plan) but would prefer to continue his or her employment with the Company pursuant to the terms provided for herein;
     WHEREAS, the Company desires to secure the continued services and employment of the Senior Advisor pursuant to the terms provided for herein; and
     WHEREAS, the Senior Advisor acknowledges and agrees that it is essential to the success of the Company that the Company be protected by non-competition and related protective restrictive agreements as set forth in this Agreement, which the Senior Advisor acknowledges and agrees are reasonable and which will not unnecessarily restrict the Senior Advisor’s professional opportunities should the Senior Advisor’s employment with the Company and its affiliates terminate.
     NOW, THEREFORE, in consideration of the foregoing premises and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:
     1. Definitions . Capitalized terms not otherwise defined herein shall have the meanings assigned to each such term in the Plan.
          “ Base Salary ” shall mean the annual rate of salary provided for in Section 4 of this Agreement, as adjusted from time to time.
          “ Competitive Enterprise ” shall have the meaning set forth in Section 10 of this Agreement.
          “ Effective Date ” shall have the meaning set forth in Section 2 of this Agreement.
          “ Employment Term ” shall have the meaning set forth in Section 2 of this Agreement.
          “ Termination of Employment Notice ” shall mean a notice delivered pursuant to Section 3 of this Agreement.

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          2. Term of Employment. The term of the Senior Advisor’s employment hereunder shall commence as of the date first above written (the “ Effective Date ”) and shall continue until the earliest of (a) the third anniversary of the Effective Date or (b) the termination of the Senior Advisor’s employment pursuant to Section 3 below (such term, the “ Employment Term ”).
          3. Notice of Termination . Either party to this Agreement may terminate the Employment Term upon 90 days’ prior written notice to the other party; provided, however, that such prior written notice shall not be required in the event of the Senior Advisor’s termination of employment by reason of the Senior Advisor’s death or Disability.
          4. Office. The Senior Advisor may perform his or her duties hereunder at the Company’s office principally utilized by him or her immediately prior to the date hereof or, at the Senior Advisor’s discretion and at his own expense, any other office or location determined by the Senior Advisor.
          5. Compensation .
          6. Base Salary . During the Employment Term, subject to the Senior Advisor’s continued employment hereunder, the Senior Advisor shall be paid an annualized Base Salary of US $          (or foreign currency equivalent), payable in semi-monthly installments.
          7. Annual Bonus . During the Employment Term, subject to the Senior Advisor’s continued employment hereunder, the Senior Advisor may be awarded an annual bonus in an amount determined in the sole discretion of the Committee.
          8. Outstanding Incentive Awards. During the Employment Term, each outstanding Award held by the Senior Advisor as of the Effective Date shall continue to vest in accordance with and be governed by the terms and conditions of the Plan and the applicable Award Agreement, subject to the following:
          any Award that remains unvested on the third anniversary of the Effective Date shall immediately accelerate and become fully vested on such third anniversary date;
          in the event of the Company’s termination of the Senior Advisor’s employment hereunder without Cause (as defined below), any Award then held by the Senior Advisor shall immediately accelerate and become fully vested on such employment termination date; and
          the Senior Advisor’s termination of employment hereunder as a result of Retirement shall be treated as a voluntary quit by the Senior Advisor subject to Section 11(d) of the Plan.
          “ Cause ” shall mean the Senior Advisor’s (i) willful misconduct, (ii) gross negligence or (iii) conviction for a felony that is injurious to the financial condition or business reputation of the Company or any of its affiliates

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          9. Employee Benefit Plans. During the Employment Term, subject to the Senior Advisor’s continued employment hereunder, the Senior Advisor shall be eligible to participate in all employee retirement and welfare benefit plans and programs of the type made available to the Company’s employees generally, in accordance with their terms and as such plans and programs may be in effect from time to time, including, without limitation, savings, profit-sharing and other retirement plans or programs, 401(k), medical, dental, flexible spending account, hospitalization, short-term and long-term disability and life insurance plans.
          10. No Severance. The Senior Advisor shall not be entitled to any severance payments or benefits upon termination of the Employment Term.
          11. Cooperation. The Senior Advisor agrees that upon termination of the Employment Term for any reason, the Senior Advisor shall cooperate with the Company as reasonably necessary in order to smoothly transition the Senior Advisor’s client relationships.
          12. Professional Code of Conduct. As a condition to the Senior Advisor’s continuing employment hereunder, the Senior Advisor agrees to comply with the Company’s professional code of conduct as in effect from time to time and further agrees to execute on an annual basis and at such additional times as the Company may reasonably request such code as set forth in the Company’s “Professional Conduct Manual” or other applicable manual or handbook of the Company or any of its subsidiaries as in effect from time to time. Notwithstanding the foregoing, the Senior Advisor agrees to execute such code to the extent the provisions therein are not inconsistent with the provisions of this Agreement.
          13. Confidential Information. The Senior Advisor will not at any time (whether during or after the Employment Term) disclose or use for the Senior Advisor’s own benefit or purposes or the benefit or purposes of any other person, firm, partnership, joint venture, association, corporation or other business organization, entity or enterprise other than the Company and any of its subsidiaries or affiliates, any trade secrets, information, data, or other confidential or proprietary information relating to customers, development programs, costs, marketing, trading, investment, sales activities, promotion, credit and financial data, financing methods, plans, or the business and affairs of the Company generally, or of any subsidiary or affiliate of the Company, provided that the foregoing shall not apply to information which is not unique to the Company or which is generally known to the industry or the public other than as a result of the Senior Advisor’s breach of this covenant. The Senior Advisor agrees that upon termination of the Employment Term for any reason, the Senior Advisor or, in the event of the Senior Advisor’s death, the Senior Advisor’s heirs or estate at the request of the Company, will return to the Company immediately all memoranda, books, papers, plans, information, letters and other data, and all copies thereof or therefrom, in any way relating to the business of the Company and its affiliates, except that the Senior Advisor (or the Senior Advisor’s heirs or estate) may retain personal notes, notebooks and diaries. The Senior Advisor further agrees that the Senior Advisor will not retain or use for the Senior Advisor’s account at any time any trade names, trademark or other proprietary business designation used or owned in connection with the business of the Company or its affiliates.
          14. Non-competition .

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          15. The Senior Advisor acknowledges and recognizes the highly competitive nature of the businesses of the Company and its affiliates. The Senior Advisor further acknowledges and agrees that in the course of the Senior Advisor’s subsequent employment with the Company or its affiliates, the Senior Advisor has been and will be provided with access to sensitive and proprietary information about the clients, prospective clients, knowledge capital and business practices of the Company or its affiliates, and has been and will be provided with the opportunity to develop relationships with clients, prospective clients, consultants, employees, representatives and other agents of the Company or its affiliates, and the Senior Advisor further acknowledges that such proprietary information and relationships are extremely valuable assets in which the Company or its affiliates or any of their predecessors have invested and will continue to invest substantial time, effort and expense. Accordingly, the Senior Advisor agrees that during the Employment Term, the Senior Advisor shall not, directly or indirectly, on the Senior Advisor’s behalf or on behalf of any other person, firm, corporation, association or other entity, as an employee or otherwise, engage in, or in any way be concerned with or negotiate for, or acquire or maintain any ownership interest in, a Competitive Enterprise. For purposes of this Agreement, “ Competitive Enterprise ” shall mean a business (or business unit) that (i) engages in any activity or (ii) owns or controls a significant interest in any entity that engages in any activity, that in either case, competes anywhere with any activity in which the Company or any of its subsidiaries is engaged at the time of Senior Advisor’s termination of employment under this Agreement. The activities covered by the previous sentence include, without limitation, investment banking financial advisory services, fund placement services for private equity and other financial sponsors and merchant banking and related services. Notwithstanding anything to the contrary in this Section 10, the foregoing provisions of this Section 11 shall not prohibit the Senior Advisor’s providing services to an entity having a stand-alone business unit which unit would, if considered separately for purposes of the definition of “Competitive Enterprise” hereunder, constitute such a Competitive Enterprise, provided the Senior Advisor is not providing services to such business unit and provided further that employment in a senior executive capacity of the business shall be deemed to be employment in the Competitive Enterprise. Further, notwithstanding anything in this Section 11, the Senior Advisor shall not be construed to be in violation of this Section 11 solely by reason of owning, directly or indirectly, any stock or other securities of a Competitive Enterprise (or comparable interest, including a voting or profit participation interest, in any such Competitive Enterprise) if the Senior Advisor’s interest does not exceed 5% of the outstanding capital stock of such Competitive Enterprise (or comparable interest, including a voting or profit participation interest, in such Competitive Enterprise).
          16. The Senior Advisor acknowledges that the Company or its affiliates is engaged in business throughout the United States and in various countries outside of the United States and that the Company intends to expand the geographic scope of its activities. Accordingly and in view of the nature of his position and responsibilities, the Senior Advisor agrees that the provisions of this Section 11 shall be applicable to each state and each foreign country, possession or territory in which the Company or its affiliates may be engaged in business during the Employment Term.
     (c) The Senior Advisor agrees that in light of the Senior Advisor’s education, skills, abilities and financial resources, the Senior Advisor will not assert, and it shall not be relevant nor admissible as evidence in any dispute arising under this Section 11 that any provisions of this

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Section 10 prevent the Senior Advisor from earning a living or otherwise are or may be void or held unenforceable. In applying this Section 11, the wishes or preferences of a client or prospective client of the Company or its affiliates as to who shall perform its services, or the fact that the client or prospective client of the Company or its affiliates may also be a client of a third party with whom the Senior Advisor is or becomes associated, shall neither be relevant nor admissible as evidence in any dispute arising under this Section 11.
     (d) The Senior Advisor shall remain subject to the restrictions of this Section 10 until the termination of the Employment Term.
          17. Nonsolicitation. The Senior agrees that during the Employment Term, the Senior Advisor will not, directly or indirectly, for himself or on behalf of any third party at any time in any manner, solicit, entice, persuade, induce, request or otherwise cause any employee who is at the associate level or above, officer or agent of the Company or any of its affiliates to apply for, or accept employment with, any Competitive Enterprise, or to otherwise refrain from rendering services to the Company or to terminate his or her relationship, contractual or otherwise, with the Company or any of its affiliates, other than in response to a general advertisement or public solicitation not directed specifically to employees of the Company or any of its affiliates.
          18. Injunctive Relief. The Senior Advisor acknowledges and agrees that the Company’s remedy at law for any breach of the covenants contained in Sections 11 or 12 of this Agreement would be inadequate and that for any breach of such covenants, the Company shall, in addition to other remedies as may be available to it at law or in equity, or as provided for in this Agreement, be entitled to an injunction, restraining order or other equitable relief, without the necessity of posting a bond, restraining the Senior Advisor from committing or continuing to commit any violation of the covenants. The Senior Advisor agrees that proof shall not be required, that monetary damages for breach of the provisions of this Agreement would be difficult to calculate and that remedies at law would be inadequate.
          19. Enforceability. In the event any of the provisions of Sections 10, 11, 12 or 13 of this Agreement are determined by a court of competent jurisdiction to be contrary to any applicable statute, law or rule, or for any reason to be unenforceable as written, such court may modify any of such provisions so as to permit enforcement thereof as thus modified.
          20. Termination of Agreement. This Agreement shall terminate upon the termination of the Employment Term, provided, however, that Sections 8, 10, 11, 12, 13, 14, 18 and 19 of this Agreement, to the extent applicable, shall survive and remain in effect notwithstanding the termination of the Employment Term or a breach by the Company or the Senior Advisor of any other term of this Agreement.
          21. Entire Agreement. This Agreement, the Plan and the applicable Award Agreements thereunder contain the entire understanding and agreement between the Company and the Senior Advisor concerning the subject matter hereof and supersede all prior agreements, understandings, discussions, negotiations and undertakings, whether written or oral, between the Company and the Senior Advisor with respect thereto.

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          22. Amendment or Waiver. No provision in this Agreement may be amended unless such amendment is agreed to in writing and signed by the Senior Advisor and an authorized officer of the Company. No waiver by the Company or by the Senior Advisor of any breach by the other party to this Agreement of any condition or provision contained in this Agreement to be performed by such other party shall be deemed a waiver of a similar or dissimilar condition or provision at the same or any prior or subsequent time. Any waiver must be in writing and signed by the Senior Advisor or an authorized officer of the Company, as the case may be. No failure or delay by the Company or by the Senior Advisor in exercising any right, power or privilege under this Agreement shall operate as a waiver thereof.
          23. Severability. In the event that any provision or portion of this Agreement shall be determined to be invalid or unenforceable for any reason, in whole or in part, the remaining provisions of this Agreement shall be unaffected thereby and shall remain in full force and effect to the fullest extent permitted by law so as to achieve the purposes of this Agreement.
          24. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York without reference to principles of conflict of laws.
          25. Notices. All notices and other communications required or permitted hereunder shall be in writing (including facsimile transmission and, if an electronic mail (“ e-mail ”) address is given below, e-mail transmission, so long as acknowledgement of receipt of such e-mail is requested and received) and shall be deemed given,
     if to the Company to:
Greenhill & Co., Inc.
300 Park Avenue
New York, New York 10022
Attention: U.S. Co-President
Fax: 212-389-1700
     with a copy to:
Davis Polk & Wardwell
450 Lexington Avenue
New York, New York 10017
Attention:
Facsimile No.: (212) 450-3800
E-mail:
     if to the Senior Advisor:

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[Name of Senior Advisor]
[address]
Attention:
Fax:
E-mail:
or such other address or facsimile number (or e-mail address) as such party may hereafter specify for the purpose by notice to the other parties hereto. All such notices, requests and other communications shall be deemed received on the date of receipt by the recipient thereof if received prior to 5:00 p.m. in the place of receipt and such day is a Business Day in the place of receipt. Otherwise, any such notice, request or communication shall be deemed not to have been received until the next succeeding Business Day in the place of receipt.
          26. Withholding Taxes. The Company may withhold from any and all amounts payable under this Agreement such federal, state, local and other applicable taxes as may be required to be withheld pursuant to any applicable law or regulation.
          27. Headings. The headings of the sections contained in this Agreement are for convenience only and shall not be deemed to control or affect the meaning or construction of any provision of this Agreement.
          28. Counterparts. This Agreement may be executed in two or more counterparts.
               IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first written above.
         
    [SENIOR ADVISOR]
 
       
     
 
       
    GREENHILL & CO., INC.
 
       
 
  By:    
 
       
 
      Name:
 
      Title:

11

Exhibit 10.46
GREENHILL & CO., INC. EQUITY INCENTIVE PLAN
RESTRICTED STOCK UNIT AWARD NOTIFICATION
Greenhill & Co., Inc., a Delaware corporation (the “ Company ”), hereby grants to the “ Participant ” this Award of Restricted Stock Units (“ RSUs ”) pursuant to the Greenhill & Co., Inc., Equity Incentive Plan (the “ Plan ”) upon the following terms and conditions:
      Name of Participant :
      Grant Date :
      Number of RSUs :
1.   This Award is subject to all terms and conditions of this Notification and the Plan. The terms of the Plan are hereby incorporated by reference. Capitalized terms not otherwise defined herein shall have the meaning assigned to such term in the Plan. The term “ Notification ” means this Notification.
2.   Each RSU represents a right to a future payment equal to the Fair Market Value of one Share at the time of such payment. Such payment may, at the Committee’s election be in cash or Shares or a combination thereof.
3.   To the extent dividends are paid on Shares while the RSUs remain outstanding, you shall be entitled to receive at the time such dividends are paid (subject to your continued employment as of the relevant dividend payment date), cash payments in amount equivalent to cash dividends on Shares with respect to the number of Shares covered by the RSUs. If you incur a termination of employment prior to the payment of Shares underlying your vested RSUs but subsequent to the applicable RSUs vesting date, as set forth in Paragraph 4 below, you shall be entitled to receive with respect to such Shares underlying your vested RSUs cash payments in amount equivalent to cash dividends on Shares regardless of whether you continue to be employed as of the relevant dividend payment date. If you incur a termination of employment under circumstances in which, pursuant to the provisions of the Plan and this Award, Shares underlying this Award are forfeited, any dividend equivalent cash payments made pursuant to this paragraph with respect to the Unvested Dividend Portion, as hereinafter defined, of the forfeited Shares shall be required to be repaid to the Company by you promptly following your termination of employment. The “Unvested Dividend Portion” of the forfeited Shares shall be one minus the portion of the Award that has been recognized as an expense in the Company’s financial statements.
4.   Subject to your continued employment as of the relevant vesting date (unless otherwise provided under the terms and conditions of the Plan or this Notification), in accordance with Paragraph 2 above you shall be entitled to receive (and the Company shall deliver to you) within 75 days following the relevant vesting date set forth below, the number of Shares underlying the RSUs (or a cash payment therefor) as of the dates set forth below in accordance with the following schedule:

 


 

     
Vesting Dates =
  100% of the Shares underlying the RSUs on January 1st of the fifth calendar year following the grant date.
5.   Notwithstanding Section 11(a) of the Plan, if the Participant terminates employment for reason of Retirement, any unvested RSUs hereunder as of the date of such termination shall automatically be forfeited and cancelled by the Company; provided, however , if rather than terminating employment for reason of Retirement, the Participant offers to convert to Senior Advisor status pursuant to the terms of the Senior Advisor Employment and Non-Competition Agreement, the form of which is attached hereto, this Award will continue to vest in accordance with the schedule set forth in paragraph 4 above subject to the terms of the Plan, this Notification and the Senior Advisor Employment and Non-Competition Agreement the terms of which shall be incorporated herein by reference.
 
6.   In accordance with Section 15(a) of the Plan, the Committee may in its sole discretion withhold from the payment to you hereunder a sufficient amount (in cash or Shares) to provide for the payment of any taxes required to be withheld by federal, state or local law with respect to income resulting from such payment.
 
7.   An RSU does not represent an equity interest in the Company, and carries no voting rights. You will not have any rights of a shareholder with respect to the RSUs until the Shares have been delivered to you.
 
8.   Notices hereunder and under the Plan, if to the Company, shall be delivered to the Plan Administrator (as so designated by the Company) or mailed to the Company’s principal office, Greenhill & Co., Inc., 300 Park Avenue, New York, New York, 10022, attention of the Plan Administrator, or, if to you, shall be delivered to you or mailed to your address as the same appears on the records of the Company.
 
9.   All decisions and interpretations made by the Board of Directors or the Committee with regard to any question arising hereunder or under the Plan shall be binding and conclusive on all persons. In the event of any inconsistency between the terms hereof and the provisions of this Notification and the Plan, this Notification shall govern.
 
10.   By accepting this Award, you acknowledge receipt of a copy of the Plan, and agree to be bound by the terms and conditions set forth in this Notification and the Plan, as in effect from time to time.
 
11.   By accepting this Award, you further acknowledge that the federal securities laws and/or the Company’s policies regarding trading in its securities may limit or restrict your right to buy or sell Shares, including, without limitation, sales of Shares acquired in connection with your RSUs. You agree to comply with such federal securities law requirements and Company policies, as such laws and policies are amended from time to time.

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12.   This Notification shall be governed by the laws of the state of New York without giving effect to its choice of law provisions.
         
    GREENHILL & CO., INC.
 
       
 
  By:    
 
  Name:   Harold J. Rodriguez, Jr.
 
  Title:   Treasurer
          If you would like to designate a beneficiary to exercise your rights under this Notification in the event of your death, please complete your designation in the space provided below, as well as please sign and print your name and date in the space provided below, and return this Notification to the attention of Harold J. Rodriguez, Jr.
                     
Beneficiary:
                   
                 
            Participant name (print):    
 
                   
 
          Date:        
 
             
 
   

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Exhibit A
FORM OF SENIOR ADVISOR EMPLOYMENT AND
NON-COMPETITION AGREEMENT
          This Senior Advisor Employment and Non-Competition Agreement (this “ Agreement ”) dated as of                          ,             is entered into by and among [ Name of Employee ] (the “ Senior Advisor ”) and Greenhill & Co., Inc., a Delaware corporation (the “ Company ”).
          WHEREAS, the Senior Advisor is an employee of the Company and is a participant in the Company’s Equity Incentive Plan (the “ Plan ”), with outstanding award(s) under the Plan;
          WHEREAS, the Senior Advisor is eligible for Retirement (as defined under the Plan) but would prefer to continue his or her employment with the Company pursuant to the terms provided for herein;
          WHEREAS, the Company desires to secure the continued services and employment of the Senior Advisor pursuant to the terms provided for herein; and
          WHEREAS, the Senior Advisor acknowledges and agrees that it is essential to the success of the Company that the Company be protected by non-competition and related protective restrictive agreements as set forth in this Agreement, which the Senior Advisor acknowledges and agrees are reasonable and which will not unnecessarily restrict the Senior Advisor’s professional opportunities should the Senior Advisor’s employment with the Company and its affiliates terminate.
          NOW, THEREFORE, in consideration of the foregoing premises and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:
     1. Definitions . Capitalized terms not otherwise defined herein shall have the meanings assigned to each such term in the Plan.
               “ Base Salary ” shall mean the annual rate of salary provided for in Section 4 of this Agreement, as adjusted from time to time.
               “ Competitive Enterprise ” shall have the meaning set forth in Section 10 of this Agreement.
               “ Effective Date ” shall have the meaning set forth in Section 2 of this Agreement.
               “ Employment Term ” shall have the meaning set forth in Section 2 of this Agreement.
               “ Termination of Employment Notice ” shall mean a notice delivered pursuant to Section 3 of this Agreement.

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               2.  Term of Employment. The term of the Senior Advisor’s employment hereunder shall commence as of the date first above written (the “ Effective Date ”) and shall continue until the earliest of (a) the third anniversary of the Effective Date or (b) the termination of the Senior Advisor’s employment pursuant to Section 3 below (such term, the “ Employment Term ”).
               3.  Notice of Termination . Either party to this Agreement may terminate the Employment Term upon 90 days’ prior written notice to the other party; provided, however, that such prior written notice shall not be required in the event of the Senior Advisor’s termination of employment by reason of the Senior Advisor’s death or Disability.
               4.  Office. The Senior Advisor may perform his or her duties hereunder at the Company’s office principally utilized by him or her immediately prior to the date hereof or, at the Senior Advisor’s discretion and at his own expense, any other office or location determined by the Senior Advisor.
               5.  Compensation .
               6.  Base Salary . During the Employment Term, subject to the Senior Advisor’s continued employment hereunder, the Senior Advisor shall be paid an annualized Base Salary of US                   (or foreign currency equivalent), payable in semi-monthly installments.
               7.  Annual Bonus . During the Employment Term, subject to the Senior Advisor’s continued employment hereunder, the Senior Advisor may be awarded an annual bonus in an amount determined in the sole discretion of the Committee.
               8.  Outstanding Incentive Awards. During the Employment Term, each outstanding Award held by the Senior Advisor as of the Effective Date shall continue to vest in accordance with and be governed by the terms and conditions of the Plan and the applicable Award Agreement, subject to the following:
               any Award that remains unvested on the third anniversary of the Effective Date shall immediately accelerate and become fully vested on such third anniversary date;
               in the event of the Company’s termination of the Senior Advisor’s employment hereunder without Cause (as defined below), any Award then held by the Senior Advisor shall immediately accelerate and become fully vested on such employment termination date; and
               the Senior Advisor’s termination of employment hereunder as a result of Retirement shall be treated as a voluntary quit by the Senior Advisor subject to Section 11(d) of the Plan.
               “ Cause ” shall mean the Senior Advisor’s (i) willful misconduct, (ii) gross negligence or (iii) conviction for a felony that is injurious to the financial condition or business reputation of the Company or any of its affiliates

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               9.  Employee Benefit Plans. During the Employment Term, subject to the Senior Advisor’s continued employment hereunder, the Senior Advisor shall be eligible to participate in all employee retirement and welfare benefit plans and programs of the type made available to the Company’s employees generally, in accordance with their terms and as such plans and programs may be in effect from time to time, including, without limitation, savings, profit-sharing and other retirement plans or programs, 401(k), medical, dental, flexible spending account, hospitalization, short-term and long-term disability and life insurance plans.
               10.  No Severance. The Senior Advisor shall not be entitled to any severance payments or benefits upon termination of the Employment Term.
               11.  Cooperation. The Senior Advisor agrees that upon termination of the Employment Term for any reason, the Senior Advisor shall cooperate with the Company as reasonably necessary in order to smoothly transition the Senior Advisor’s client relationships.
               12.  Professional Code of Conduct. As a condition to the Senior Advisor’s continuing employment hereunder, the Senior Advisor agrees to comply with the Company’s professional code of conduct as in effect from time to time and further agrees to execute on an annual basis and at such additional times as the Company may reasonably request such code as set forth in the Company’s “Professional Conduct Manual” or other applicable manual or handbook of the Company or any of its subsidiaries as in effect from time to time. Notwithstanding the foregoing, the Senior Advisor agrees to execute such code to the extent the provisions therein are not inconsistent with the provisions of this Agreement.
               13.  Confidential Information. The Senior Advisor will not at any time (whether during or after the Employment Term) disclose or use for the Senior Advisor’s own benefit or purposes or the benefit or purposes of any other person, firm, partnership, joint venture, association, corporation or other business organization, entity or enterprise other than the Company and any of its subsidiaries or affiliates, any trade secrets, information, data, or other confidential or proprietary information relating to customers, development programs, costs, marketing, trading, investment, sales activities, promotion, credit and financial data, financing methods, plans, or the business and affairs of the Company generally, or of any subsidiary or affiliate of the Company, provided that the foregoing shall not apply to information which is not unique to the Company or which is generally known to the industry or the public other than as a result of the Senior Advisor’s breach of this covenant. The Senior Advisor agrees that upon termination of the Employment Term for any reason, the Senior Advisor or, in the event of the Senior Advisor’s death, the Senior Advisor’s heirs or estate at the request of the Company, will return to the Company immediately all memoranda, books, papers, plans, information, letters and other data, and all copies thereof or therefrom, in any way relating to the business of the Company and its affiliates, except that the Senior Advisor (or the Senior Advisor’s heirs or estate) may retain personal notes, notebooks and diaries. The Senior Advisor further agrees that the Senior Advisor will not retain or use for the Senior Advisor’s account at any time any trade names, trademark or other proprietary business designation used or owned in connection with the business of the Company or its affiliates.
               14.  Non-competition .

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               15. The Senior Advisor acknowledges and recognizes the highly competitive nature of the businesses of the Company and its affiliates. The Senior Advisor further acknowledges and agrees that in the course of the Senior Advisor’s subsequent employment with the Company or its affiliates, the Senior Advisor has been and will be provided with access to sensitive and proprietary information about the clients, prospective clients, knowledge capital and business practices of the Company or its affiliates, and has been and will be provided with the opportunity to develop relationships with clients, prospective clients, consultants, employees, representatives and other agents of the Company or its affiliates, and the Senior Advisor further acknowledges that such proprietary information and relationships are extremely valuable assets in which the Company or its affiliates or any of their predecessors have invested and will continue to invest substantial time, effort and expense. Accordingly, the Senior Advisor agrees that during the Employment Term, the Senior Advisor shall not, directly or indirectly, on the Senior Advisor’s behalf or on behalf of any other person, firm, corporation, association or other entity, as an employee or otherwise, engage in, or in any way be concerned with or negotiate for, or acquire or maintain any ownership interest in, a Competitive Enterprise. For purposes of this Agreement, “ Competitive Enterprise ” shall mean a business (or business unit) that (i) engages in any activity or (ii) owns or controls a significant interest in any entity that engages in any activity, that in either case, competes anywhere with any activity in which the Company or any of its subsidiaries is engaged at the time of Senior Advisor’s termination of employment under this Agreement. The activities covered by the previous sentence include, without limitation, investment banking financial advisory services, fund placement services for private equity and other financial sponsors and merchant banking and related services. Notwithstanding anything to the contrary in this Section 10, the foregoing provisions of this Section 11 shall not prohibit the Senior Advisor’s providing services to an entity having a stand-alone business unit which unit would, if considered separately for purposes of the definition of “Competitive Enterprise” hereunder, constitute such a Competitive Enterprise, provided the Senior Advisor is not providing services to such business unit and provided further that employment in a senior executive capacity of the business shall be deemed to be employment in the Competitive Enterprise. Further, notwithstanding anything in this Section 11, the Senior Advisor shall not be construed to be in violation of this Section 11 solely by reason of owning, directly or indirectly, any stock or other securities of a Competitive Enterprise (or comparable interest, including a voting or profit participation interest, in any such Competitive Enterprise) if the Senior Advisor’s interest does not exceed 5% of the outstanding capital stock of such Competitive Enterprise (or comparable interest, including a voting or profit participation interest, in such Competitive Enterprise).
               16. The Senior Advisor acknowledges that the Company or its affiliates is engaged in business throughout the United States and in various countries outside of the United States and that the Company intends to expand the geographic scope of its activities. Accordingly and in view of the nature of his position and responsibilities, the Senior Advisor agrees that the provisions of this Section 11 shall be applicable to each state and each foreign country, possession or territory in which the Company or its affiliates may be engaged in business during the Employment Term.
          (c) The Senior Advisor agrees that in light of the Senior Advisor’s education, skills, abilities and financial resources, the Senior Advisor will not assert, and it shall not be relevant

7


 

nor admissible as evidence in any dispute arising under this Section 11 that any provisions of this Section 10 prevent the Senior Advisor from earning a living or otherwise are or may be void or held unenforceable. In applying this Section 11, the wishes or preferences of a client or prospective client of the Company or its affiliates as to who shall perform its services, or the fact that the client or prospective client of the Company or its affiliates may also be a client of a third party with whom the Senior Advisor is or becomes associated, shall neither be relevant nor admissible as evidence in any dispute arising under this Section 11.
          (d) The Senior Advisor shall remain subject to the restrictions of this Section 10 until the termination of the Employment Term.
               17.  Nonsolicitation. The Senior agrees that during the Employment Term, the Senior Advisor will not, directly or indirectly, for himself or on behalf of any third party at any time in any manner, solicit, entice, persuade, induce, request or otherwise cause any employee who is at the associate level or above, officer or agent of the Company or any of its affiliates to apply for, or accept employment with, any Competitive Enterprise, or to otherwise refrain from rendering services to the Company or to terminate his or her relationship, contractual or otherwise, with the Company or any of its affiliates, other than in response to a general advertisement or public solicitation not directed specifically to employees of the Company or any of its affiliates.
               18.  Injunctive Relief. The Senior Advisor acknowledges and agrees that the Company’s remedy at law for any breach of the covenants contained in Sections 11 or 12 of this Agreement would be inadequate and that for any breach of such covenants, the Company shall, in addition to other remedies as may be available to it at law or in equity, or as provided for in this Agreement, be entitled to an injunction, restraining order or other equitable relief, without the necessity of posting a bond, restraining the Senior Advisor from committing or continuing to commit any violation of the covenants. The Senior Advisor agrees that proof shall not be required, that monetary damages for breach of the provisions of this Agreement would be difficult to calculate and that remedies at law would be inadequate.
               19.  Enforceability. In the event any of the provisions of Sections 10, 11, 12 or 13 of this Agreement are determined by a court of competent jurisdiction to be contrary to any applicable statute, law or rule, or for any reason to be unenforceable as written, such court may modify any of such provisions so as to permit enforcement thereof as thus modified.
               20.  Termination of Agreement. This Agreement shall terminate upon the termination of the Employment Term, provided, however, that Sections 8, 10, 11, 12, 13, 14, 18 and 19 of this Agreement, to the extent applicable, shall survive and remain in effect notwithstanding the termination of the Employment Term or a breach by the Company or the Senior Advisor of any other term of this Agreement.
               21.  Entire Agreement. This Agreement, the Plan and the applicable Award Agreements thereunder contain the entire understanding and agreement between the Company and the Senior Advisor concerning the subject matter hereof and supersede all prior agreements, understandings, discussions, negotiations and undertakings, whether written or oral, between the Company and the Senior Advisor with respect thereto.

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               22.  Amendment or Waiver. No provision in this Agreement may be amended unless such amendment is agreed to in writing and signed by the Senior Advisor and an authorized officer of the Company. No waiver by the Company or by the Senior Advisor of any breach by the other party to this Agreement of any condition or provision contained in this Agreement to be performed by such other party shall be deemed a waiver of a similar or dissimilar condition or provision at the same or any prior or subsequent time. Any waiver must be in writing and signed by the Senior Advisor or an authorized officer of the Company, as the case may be. No failure or delay by the Company or by the Senior Advisor in exercising any right, power or privilege under this Agreement shall operate as a waiver thereof.
               23.  Severability. In the event that any provision or portion of this Agreement shall be determined to be invalid or unenforceable for any reason, in whole or in part, the remaining provisions of this Agreement shall be unaffected thereby and shall remain in full force and effect to the fullest extent permitted by law so as to achieve the purposes of this Agreement.
               24.  Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York without reference to principles of conflict of laws.
               25.  Notices. All notices and other communications required or permitted hereunder shall be in writing (including facsimile transmission and, if an electronic mail (“ e-mail ”) address is given below, e-mail transmission, so long as acknowledgement of receipt of such e-mail is requested and received) and shall be deemed given,
          if to the Company to:
Greenhill & Co., Inc.
300 Park Avenue
New York, New York 10022
Attention: U.S. Co-President
Fax: 212-389-1700
          with a copy to:
Davis Polk & Wardwell
450 Lexington Avenue
New York, New York 10017
Attention:
Facsimile No.: (212) 450-3800
E-mail:
          if to the Senior Advisor:

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[Name of Senior Advisor]
[address]
Attention:
Fax:
E-mail:
or such other address or facsimile number (or e-mail address) as such party may hereafter specify for the purpose by notice to the other parties hereto. All such notices, requests and other communications shall be deemed received on the date of receipt by the recipient thereof if received prior to 5:00 p.m. in the place of receipt and such day is a Business Day in the place of receipt. Otherwise, any such notice, request or communication shall be deemed not to have been received until the next succeeding Business Day in the place of receipt.
               26.  Withholding Taxes. The Company may withhold from any and all amounts payable under this Agreement such federal, state, local and other applicable taxes as may be required to be withheld pursuant to any applicable law or regulation.
               27.  Headings. The headings of the sections contained in this Agreement are for convenience only and shall not be deemed to control or affect the meaning or construction of any provision of this Agreement.
               28.  Counterparts. This Agreement may be executed in two or more counterparts.
                    IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first written above.
                 
    [SENIOR ADVISOR]        
 
               
             
 
               
    GREENHILL & CO., INC.        
 
               
 
  By:            
               
 
      Name:        
 
      Title:        

10

Exhibit 10.47
GREENHILL & CO., INC. EQUITY INCENTIVE PLAN
RESTRICTED STOCK UNIT AWARD NOTIFICATION
Greenhill & Co., Inc., a Delaware corporation (the “ Company ”), hereby grants to the “ Participant ” this Award of Restricted Stock Units (“ RSUs ”) pursuant to the Greenhill & Co., Inc., Equity Incentive Plan (the “ Plan ”) upon the following terms and conditions:
      Name of Participant :
      Grant Date :
      Number of RSUs :
1.   This Award is subject to all terms and conditions of this Notification and the Plan. The terms of the Plan are hereby incorporated by reference. Capitalized terms not otherwise defined herein shall have the meaning assigned to such term in the Plan. The term “ Notification ” means this Notification.
2.   Each RSU represents a right to a future payment equal to the Fair Market Value of one Share at the time of such payment. Such payment may, at the Committee’s election be in cash or Shares or a combination thereof.
3.   To the extent dividends are paid on Shares while the RSUs remain outstanding, you shall be entitled to receive at the time such dividends are paid (subject to your continued employment as of the relevant dividend payment date), cash payments in amount equivalent to cash dividends on Shares with respect to the number of Shares covered by the RSUs. If you incur a termination of employment prior to the payment of Shares underlying your vested RSUs but subsequent to the applicable RSUs vesting date, as set forth in Paragraph 4 below, you shall be entitled to receive with respect to such Shares underlying your vested RSUs cash payments in amount equivalent to cash dividends on Shares regardless of whether you continue to be employed as of the relevant dividend payment date. If you incur a termination of employment under circumstances in which, pursuant to the provisions of the Plan and this Award, Shares underlying this Award are forfeited, any dividend equivalent cash payments made pursuant to this paragraph with respect to the Unvested Dividend Portion, as hereinafter defined, of the forfeited Shares shall be required to be repaid to the Company by you promptly following your termination of employment. The “Unvested Dividend Portion” of the forfeited Shares shall be one minus the portion of the Award that has been recognized as an expense in the Company’s financial statements.
4.   Subject to your continued employment as of the relevant vesting date (unless otherwise provided under the terms and conditions of the Plan or this Notification), in accordance with Paragraph 2 above you shall be entitled to receive (and the Company shall deliver to you) within 75 days following the relevant vesting date set forth below, the number of Shares underlying the RSUs (or a cash payment therefor) as of the dates set forth below in accordance with the following schedule:

 


 

     
Vesting Dates =
  20% of the Shares underlying the RSUs on January 1st of each of the first, second, third, fourth and fifth calendar years following the grant date.
5.   In accordance with Section 15(a) of the Plan, the Committee may in its sole discretion withhold from the payment to you hereunder a sufficient amount (in cash or Shares) to provide for the payment of any taxes required to be withheld by federal, state or local law with respect to income resulting from such payment.
 
6.   An RSU does not represent an equity interest in the Company, and carries no voting rights. You will not have any rights of a shareholder with respect to the RSUs until the Shares have been delivered to you.
 
7.   Notices hereunder and under the Plan, if to the Company, shall be delivered to the Plan Administrator (as so designated by the Company) or mailed to the Company’s principal office, Greenhill & Co., Inc., 300 Park Avenue, New York, New York, 10022, attention of the Plan Administrator, or, if to you, shall be delivered to you or mailed to your address as the same appears on the records of the Company.
 
8.   All decisions and interpretations made by the Board of Directors or the Committee with regard to any question arising hereunder or under the Plan shall be binding and conclusive on all persons. In the event of any inconsistency between the terms hereof and the provisions of this Notification and the Plan, this Notification shall govern.
 
9.   By accepting this Award, you acknowledge receipt of a copy of the Plan, and agree to be bound by the terms and conditions set forth in this Notification and the Plan, as in effect from time to time.
 
10.   By accepting this Award, you further acknowledge that the federal securities laws and/or the Company’s policies regarding trading in its securities may limit or restrict your right to buy or sell Shares, including, without limitation, sales of Shares acquired in connection with your RSUs. You agree to comply with such federal securities law requirements and Company policies, as such laws and policies are amended from time to time.
 
11.   This Notification shall be governed by the laws of the state of New York without giving effect to its choice of law provisions.
         
    GREENHILL & CO., INC.
 
       
 
  By:    
 
  Name:   Harold J. Rodriguez, Jr.
 
  Title:   Treasurer
          If you would like to designate a beneficiary to exercise your rights under this Notification in the event of your death, please complete your designation in the space provided below, as well

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as please sign and print your name and date in the space provided below, and return this Notification to the attention of Harold J. Rodriguez, Jr.
                 
Beneficiary:
               
             
            Participant name (print):
 
               
 
          Date:    
 
               

3

EXHIBIT 31.1
     I, Scott L. Bok, certify that:
  1.   I have reviewed this quarterly report on Form 10-Q of Greenhill & Co., Inc.;
 
  2.   Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;
 
  3.   Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;
 
  4.   The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f) and 15d-15(f)) for the registrant and have:
  a)   designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;
 
  b)   designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
 
  c)   evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this quarterly report based on such evaluation; and
 
  d)   disclosed in this quarterly report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
  5.   The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):
  a)   all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
 
  b)   any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date: May 7, 2009
     
/s/ SCOTT L. BOK
 
   
Scott L. Bok
   
Co-Chief Executive Officer
   

 

EXHIBIT 31.2
     I, Simon A. Borrows, certify that:
  1.   I have reviewed this quarterly report on Form 10-Q of Greenhill & Co., Inc.;
 
  2.   Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;
 
  3.   Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;
 
  4.   The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
  a)   designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;
 
  b)   designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
 
  c)   evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this quarterly report based on such evaluation; and
 
  d)   disclosed in this quarterly report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
  5.   The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):
  a)   all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
 
  b)   any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date: May 7, 2009
     
/s/ SIMON A. BORROWS
 
   
Simon A. Borrows
   
Co-Chief Executive Officer
   

 

EXHIBIT 31.3
     I, Richard J. Lieb, certify that:
  1.   I have reviewed this quarterly report on Form 10-Q of Greenhill & Co., Inc.;
 
  2.   Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;
 
  3.   Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;
 
  4.   The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
  a)   designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;
 
  b)   designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
 
  c)   evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this quarterly report based on such evaluation; and
 
  d)   disclosed in this quarterly report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
  5.   The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):
  a)   all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
 
  b)   any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date: May 7, 2009
     
/s/ RICHARD J. LIEB
 
   
Richard J. Lieb
   
Chief Financial Officer
   

 

EXHIBIT 32.1
May 7, 2009
Securities and Exchange Commission
100 F Street, N.E.
Washington, DC 20549
CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002, PURSUANT TO SECTION 1350 OF CHAPTER 63 OF TITLE 18 OF THE UNITED STATES CODE
     I, Scott L. Bok, Co-Chief Executive Officer of Greenhill & Co., Inc. (the “Company”), certify that, to the best of my knowledge:
  (1)   the report of the Company on Form 10-Q for the quarterly period ending March 31, 2009 (the “Report”) fully complies with the requirements of Section 15(d) of the Securities Exchange Act of 1934; and
 
  (2)   the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods presented in the Report.
         
/s/ SCOTT L. BOK
 
Scott L. Bok
         
Co-Chief Executive Officer
       
     A signed original of this written statement required by Section 906 has been provided to Greenhill & Co., Inc. and will be retained by Greenhill & Co., Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

 

EXHIBIT 32.2
May 7, 2009
Securities and Exchange Commission
100 F Street, N.E.
Washington, DC 20549
CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002, PURSUANT TO SECTION 1350 OF CHAPTER 63 OF TITLE 18 OF THE UNITED STATES CODE
     I, Simon A. Borrows, Co-Chief Executive Officer of Greenhill & Co., Inc. (the “Company”), certify that, to the best of my knowledge:
  (1)   the report of the Company on Form 10-Q for the quarterly period ending March 31, 2009 (the “Report”) fully complies with the requirements of Section 15(d) of the Securities Exchange Act of 1934; and
 
  (2)   the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods presented in the Report.
         
/s/ SIMON A. BORROWS
 
Simon A. Borrows
Co-Chief Executive Officer
       
     A signed original of this written statement required by Section 906 has been provided to Greenhill & Co., Inc. and will be retained by Greenhill & Co., Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

 

EXHIBIT 32.3
May 7, 2009
Securities and Exchange Commission
100 F Street, N.E.
Washington, DC 20549
CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002, PURSUANT TO SECTION 1350 OF CHAPTER 63 OF TITLE 18 OF THE UNITED STATES CODE
     I, Richard J. Lieb, Chief Financial Officer and Managing Director of Greenhill & Co., Inc. (the “Company”), certify that, to the best of my knowledge:
  (1)   the report of the Company on Form 10-Q for the quarterly period ending March 31, 2009 (the “Report”) fully complies with the requirements of section 15(d) of the Securities Exchange Act of 1934; and
 
  (2)   the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods presented in the Report.
         
/s/ RICHARD J. LIEB
 
Richard J. Lieb
Chief Financial Officer
       
     A signed original of this written statement required by Section 906 has been provided to Greenhill & Co., Inc. and will be retained by Greenhill & Co., Inc. and furnished to the Securities and Exchange Commission or its staff upon request.