Document:

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                                                                   March 2, 2001

                          FORM OF EMPLOYMENT AGREEMENT
                             FOR INSTINET EXECUTIVES

                  This EMPLOYMENT AGREEMENT (the "Agreement") is entered into as
of this ____ day of ______, 2001 by and between Instinet Group LLC, a Delaware
limited liability company (the "Company"), and ________ ("Executive").

                                   WITNESSETH:

                  WHEREAS, Executive is currently employed by the Company as its
[INSERT CURRENT TITLE];

                  WHEREAS, the Company desires to continue the employment of
Executive;

                  WHEREAS, the Company and Executive desire to set forth the
terms and conditions of Executive's continued employment with the Company and
Executive desires to accept such employment on the terms and conditions set
forth herein;

                  WHEREAS, this form of Executive Employment Agreement has been
approved by the Compensation Committee of the Company on March 2, 2001;

                  WHEREAS, each of the Company and Executive agrees that
Executive has had and will continue to have a prominent role in the management
of the business, and the development of the goodwill, of the Company and its
Affiliates, and has established and developed and will continue to establish and
develop relations and contacts with the principal customers and suppliers of the
Company and its Affiliates in           [INSERT PRINCIPAL COUNTRY(IES) OR
CONTINENT(S) WHERE EXECUTIVE'S SERVICES WILL BE PERFORMED] (collectively, the
"Restricted Territory"), all of which constitute valuable goodwill of, and could
be used by Executive to compete unfairly with, the Company and its Affiliates;
and

                  WHEREAS, (i) in the course of his employment with the Company,
Executive has obtained and will continue to obtain confidential and proprietary
information and trade secrets concerning the business and operations of the
Company and its Affiliates in the Restricted Territory that could be used to
compete unfairly with the Company and its Affiliates; (ii) Executive has and
will continue to create and develop certain work products, inventions and other
intellectual property which constitute an essential portion of the property of
the Company and its Affiliates, (iii) the covenants and restrictions contained
in Sections 8 through 14, inclusive, are intended to protect the legitimate
interests of the Company and its Affiliates in their respective goodwill, trade
secrets and other confidential and proprietary information and intellectual
property; and (iv) Executive desires to be bound by such covenants and
restrictions.

                  NOW, THEREFORE, in consideration of the premises and the
mutual covenants and promises contained herein and for other good and valuable
consideration, the Company and Executive hereby agree as follows:

                  l. Agreement to Continue Employment. Upon the terms and
subject to the conditions of this Agreement, the Company hereby continues the
employment of Executive, and Executive hereby accepts such continued employment
with the Company.

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                  2. Term; Position and Responsibilities.

                  (a) Term of Employment. Unless Executive's employment shall
sooner terminate pursuant to Section 7, the Company shall employ Executive on
the terms and subject to the conditions of this Agreement for a term commencing
on the date hereof (the "Commencement Date") and ending on the three year
anniversary of the Commencement Date (the "Initial Term"). Effective upon the
expiration of the Initial Term and of each Additional Term (as defined below),
Executive's employment hereunder shall be deemed to be automatically extended,
upon the same terms and conditions, for an additional period of one year (each,
an "Additional Term"), in each such case, commencing upon the expiration of the
Initial Term or the then current Additional Term, as the case may be, unless the
Company, at least 6 months prior to the expiration of the Initial Term or such
Additional Term, shall give written notice to Executive of its intention not to
extend the Employment Period (as defined below) hereunder. The period during
which Executive is employed by the Company pursuant to this Agreement shall be
referred to as the "Employment Period."

                  (b) Position and Responsibilities. During the Employment
Period, Executive shall serve as ___________ [INSERT TITLE] of the Company and
shall have such duties and responsibilities as are customarily assigned to
individuals serving in such position and such other duties consistent with
Executive's title and position as the Board of Directors of the Company (the
"Board") specifies from time to time. Executive shall devote all of his skill,
knowledge, commercial efforts and working time to the conscientious and faithful
performance of his duties and responsibilities for the Company (except for (i)
vacation time as provided by Company policy and absence for sickness or similar
disability and (ii) to the extent that it does not interfere with the
performance of Executive's duties hereunder, (A) such reasonable time as may be
devoted to the fulfillment of Executive's civic responsibilities and, subject to
the prior written approval of the Board and to compliance with the provisions of
Sections 8 through 14, inclusive, service on boards of directors of other
corporations and entities and (B) such reasonable time as may be necessary from
time to time for personal financial matters).

                  3. Base Salary. As compensation for the services to be
performed by Executive during the Employment Period, the Company shall pay
Executive a base salary at an annualized rate of $__________, payable in
installments on the Company's regular payroll dates. The Company shall review
Executive's base salary annually during the period of his employment hereunder
and, in its sole discretion, may adjust such base salary from time to time based
upon such factors as the Compensation Committee of the Board (the "Compensation
Committee") shall consider relevant. The annual base salary payable to Executive
under this Section 3 shall hereinafter be referred to as the "Base Salary".

                  4.       Incentive Compensation Arrangements.

                  (a) Annual Incentive Bonus. During the Employment Period and
subject to the review and approval of the Compensation Committee, Executive
shall be eligible to participate in the annual bonus program maintained by the
Company for its senior executives. Provided that, except to the extent expressly
provided otherwise in Section 7(f), Executive's employment has not terminated
prior to the last day of the fiscal year of the Company in respect of which any
bonus is payable, Executive shall have the opportunity to receive an annual
bonus

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under such program (the "Bonus"), which may be in cash, restricted stock,
options or other non-cash compensation, in an amount to be determined by the
Compensation Committee based on the achievement by the Company and Executive of
such performance objectives as may be established from time to time by the
Compensation Committee or other committee of the Board.

                  (b) Option Grants. During the Employment Period, Executive
shall be eligible to participate in the Instinet 2000 Stock Option Plan (as the
same may be amended and in effect from time to time, the "2000 Option Plan") and
any subsequent stock option plan maintained by the Company for its senior
executives, subject to the review and approval of the Compensation Committee.
The terms and conditions of all options to purchase shares of common stock
granted to Executive under the 2000 Option Plan or under any prior or subsequent
stock option plan maintained by the Company or its Affiliates (including any
options granted to Executive prior to the Commencement Date) (collectively, the
"Options"), including the grant, vesting, exercise, payment and all other terms
of such Options, shall be governed by the terms of the stock option plan under
which such Options were granted, as such plan or plans may be amended and in
effect from time to time.

                  5. Employee Benefits. During the Employment Period, Executive
shall be eligible to participate in the employee benefit plans and programs
maintained by the Company from time to time in which senior executives of the
Company are eligible to participate, including to the extent maintained by the
Company life, medical, dental, accidental and disability insurance plans and
profit sharing, pension, retirement, deferred compensation and savings plans, in
accordance with the terms and conditions thereof as in effect from time to time.
The benefits referred to in this Section 5 shall be provided to Executive on a
basis that is commensurate with Executive's position and duties with the
Company.

                  6.       Perquisites and Expenses.

                  (a) General. During the Employment Period, Executive shall be
eligible to participate in all special benefit or perquisite programs of the
Company generally available from time to time to senior executives of the
Company, on the terms and conditions thereof as in effect from time to time.

                  (b) Business Travel, Lodging, etc. During the Employment
Period, the Company shall reimburse Executive for reasonable travel, lodging,
meal and other reasonable expenses incurred by him in connection with the
performance of his duties and responsibilities hereunder upon submission of
evidence, satisfactory to the Company, of the incurrence and purpose of each
such expense and otherwise in accordance with terms and conditions of the
Company's business expense reimbursement policy applicable to its senior
executives as in effect from time to time.

                  (c) Vacation. During the Employment Period, Executive shall be
entitled to paid vacation on an annualized basis in the amount provided by
Company policy, without carryover accumulation.

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                  7.       Termination of Employment.

                  (a) Termination Due to Death or Disability. Executive's
employment may be terminated by the Company due to Executive's Disability (as
defined in the Company's Human Resources policies). In the event that
Executive's employment hereunder terminates due to his death or is terminated by
the Company due to Executive's Disability, no termination benefits shall be
payable to or in respect of Executive except as provided in Section 7(f) (ii).

                  (b) Termination by the Company for Cause. Executive's
employment may be terminated by the Company for Cause (as defined in the 2000
Option Plan). In the event of a termination of Executive's employment by the
Company for Cause, no termination benefits shall be payable to or in respect of
Executive except as provided in Section 7(f)(ii).

                  (c) Termination Without Cause. Executive's employment may be
terminated by the Company Without Cause (as defined below). In the event of a
termination of Executive's employment by the Company Without Cause, no
termination benefits shall be payable to or in respect of Executive except as
provided in Section 7(f)(i). For purposes of this Agreement and the Options, a
termination "Without Cause" shall mean a termination of Executive's employment
by the Company other than due to Executive's death or Disability as described in
Section 7(a) and other than for Cause as described in Section 7(b).

                  (d) Termination by Executive. Executive may terminate his
employment for any reason, including for Good Reason (as defined below). In the
event of a termination of Executive's employment by Executive other than for
Good Reason, no termination benefits shall be payable to or in respect of
Executive except as provided in Section 7(f)(ii) and in the event of a
termination of Executive's employment by Executive for Good Reason, no
termination benefits shall be payable to or in respect of Executive except as
provided in Section 7(f)(i). For purposes of this Agreement, a termination of
employment by Executive for "Good Reason" shall mean a termination by Executive
of his employment with the Company within 30 days following the occurrence,
without Executive's consent, of any of the following events: (i) a material
diminution in the Executive duties, authority, position or responsibilities;
(ii) a material decrease in the Executive's base pay, fees, incentive
compensation opportunities, and/or employee benefits and prerequisites; or (iii)
a requirement that the Executive relocate his or her primary place of employment
or service by more that 30 miles; provided that the Executive shall have given
the Company or the relevant Affiliate of the Company notice of the event or
events constituting Good Reason and the Company or such Subsidiary shall have
failed to cure such event or events within 10 business days after receipt of
such notice.

                  (e)      Notice of Termination; Date of Termination.

                  (i) Notice of Termination. Any termination by the Company
pursuant to Section 7(a), 7(b) or 7(c), or by Executive pursuant to Section
7(d), shall be communicated by a written Notice of Termination addressed to the
other party to this Agreement. A "Notice of Termination" shall mean a notice
stating that Executive or the Company, as the case may be, is electing to
terminate Executive's employment with the Company, stating the proposed
effective date of such termination, indicating the specific provision of this
Section 7 under which such

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termination is being effected and, if applicable, setting forth in reasonable
detail the circumstances claimed to provide the basis for such termination.

                  (ii) Date of Termination. The term "Date of Termination" shall
mean (i) if Executive's employment is terminated by his death, the date of his
death, (ii) if Executive's employment is terminated by the Company for Cause,
the date on which Notice of Termination is given or, if later, the effective
date of termination specified in such Notice of Termination, and (iii) if
Executive's employment is terminated by the Company Without Cause, due to
Executive's Disability or by Executive for any reason, the date specified in the
applicable Notice of Termination provided that such date shall not be less than
30 days nor more than 60 days after the date on which Notice of Termination is
given.

                  (f)      Payments Upon Certain Terminations.

                  (i) In the event of a termination of Executive's employment by
the Company Without Cause or a termination by Executive of his employment for
Good Reason during the Employment Period, the Company shall pay to Executive
(or, following his death, to Executive's estate) within 30 days of the Date of
Termination his (x) full Base Salary through the Date of Termination, (y)
reimbursement for any unreimbursed business expenses incurred by Executive prior
to the Date of Termination that are subject to reimbursement pursuant to Section
6(b) and (z) payment for vacation time accrued as of the Date of Termination but
unused (such amounts under clauses (x), (y) and (z), collectively the "Accrued
Obligations"). In addition, in the event of any such termination of Executive's
employment, provided Executive executes and delivers to the Company a Release
and Discharge of Claims in a form acceptable to the Company, Executive (or,
following his death, Executive's estate) shall be entitled to the following
payments and benefits, as liquidated damages:

                  (A) continued payments of the Base Salary, payable in
         installments in accordance with the Company's regular payroll policies,
         for the period beginning on the Date of Termination and ending on the
         second anniversary of the Date of Termination (the "Severance Period");

                  (B) a portion of Executive's Bonus for the fiscal year of the
         Company that includes the Date of Termination, such portion to equal
         the product (such product, the "Pro Rata Bonus") of (1) the Bonus that
         would have been payable to Executive for such year had he remained
         employed for the entire fiscal year and had Executive and the Company
         each achieved (but not exceeded) the target performance objectives for
         such year established by the Board or a committee thereof, multiplied
         by (2) a fraction, the numerator of which is equal to the number of
         days in such fiscal year that precede the Date of Termination and the
         denominator of which is equal to 365, such amount to be payable to
         Executive within five business days following the date (the "Bonus
         Payment Date") annual bonuses for such fiscal year are actually paid by
         the Company to its active executives;

                  (C) payment of an amount equal to 200% of the Average Bonus
         (as defined below), such amount to be paid in two equal installments,
         the first such installment to be paid within five business days
         following the Bonus Payment Date for the fiscal year of

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         the Company that includes the Date of Termination and the second such
         installment to be paid within five business days following the Bonus
         Payment Date for the next succeeding fiscal year of the Company;

                   (D) continued coverage during the Severance Period under the
         Company's medical and health insurance plans referred to in Section 5
         (the "Continued Benefits") for Executive and his eligible dependents
         participating in such plans immediately prior to the Date of
         Termination, subject to timely payment by Executive of all premiums,
         contributions and other co-payments required to be paid by senior
         executives of the Company under the terms of such plans as in effect
         from time to time.

                  The term "Average Annual Bonus" means the average of the
annual cash bonuses plus the value at the time of award of any non-cash bonuses
paid to Executive for each of the three complete fiscal years of the Company
ending immediately prior to the Date of Termination during which Executive was
employed by the Company or, if Executive has been employed by the Company for an
aggregate period of less than three fiscal years, the average of the annual
bonuses paid to Executive by the Company for Executive's period of employment.

                  Executive shall not have a duty to mitigate the costs to the
Company under this Section 7(f)(i), nor shall any payments from Company to
Executive of Base Salary, Average Annual Bonus and Pro Rata Bonus be reduced,
offset or canceled by any compensation, or fees o earned by (whether or not paid
currently) or offered to Executive during the Severance Period by a subsequent
employer or other Person (as defined below) for which Executive performs
services, including but not limited to consulting services. The foregoing
notwithstanding, should Executive receive benefits coverage by a subsequent
employer during the Severance Period, all health and medical benefits coverage
provided by the Company to Executive shall immediately terminate.

                  (ii) If Executive's employment shall terminate upon his death
or Disability or if the Company shall terminate Executive's employment for Cause
or Executive shall terminate his employment without Good Reason in any such case
during the Employment Period, the Company shall pay to Executive (or, in the
event of Executive's death, to his estate) the Accrued Obligations within 30
days following the Date of Termination. In addition, if Executive's employment
shall terminate upon his death or Disability during the Employment Period, the
Company shall pay to Executive (or, in the event of Executive's death, to his
estate) the Pro Rata Bonus, if any, in one lump sum within five business days
following the Bonus Payment Date for the fiscal year of the Company that
includes the Date of Termination.

                  (iii) Except as specifically set forth in this Section 7(f),
no benefits payable to Executive under any otherwise applicable plan, policy,
program or practice of the Company or its Affiliates in which Executive was a
participant during his employment with the Company or its Affiliates shall be
limited by this Section 7(f), provided that Executive shall not be entitled to
receive any payments or benefits under any such plan, policy, program or
practice providing any bonus or incentive compensation or severance compensation
or benefits (and the provisions of this Section 7(f) shall supersede the
provisions of any such plan, policy, program or practice).

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                  (g) Resignation upon Termination. Effective as of any Date of
Termination under this Section 7 or otherwise as of the date of Executive's
termination of employment with the Company, Executive shall resign, in writing,
from all Board memberships and other positions then held by him with the Company
and its Affiliates.

                  8. Unauthorized Disclosure. During the period of Executive's
employment with the Company and following any termination of such employment,
without the prior written consent of the Board or its authorized representative,
except to the extent required by an order of a court having jurisdiction or
under subpoena from an appropriate government agency, in which event, Executive
shall use his best efforts to consult with the Board prior to responding to any
such order or subpoena, and except as required in the appropriate performance of
his duties hereunder, Executive shall not disclose any confidential or
proprietary trade secrets, customer lists, drawings, designs, programs,
software, protocols, information regarding product development, marketing plans,
sales plans, manufacturing plans, management organization information (including
but not limited to data and other information relating to members of the Board
of Directors of the Company or any of its Affiliates or to management of the
Company or any of its Affiliates), operating policies or manuals, business
plans, financial records, packaging design or other financial, commercial,
business or technical information (a) relating to the Company or any of its
Affiliates or (b) that the Company or any of its Affiliates may receive
belonging to suppliers, customers or others who do business with the Company or
any of its Affiliates (collectively, "Confidential Information") to any third
person unless such Confidential Information has been previously disclosed to the
public or is in the public domain (other than by reason of Executive's breach of
this Section 8).

                  9. Non-Competition. During the period of Executive's
employment with the Company and, following any termination thereof, the period
ending on the later of (a) six months after the Date of Termination and (b) the
last day of the Severance Period (such periods, collectively, the "Restriction
Period"), Executive shall not, directly or indirectly, become employed by,
engage in business with, serve as an agent or consultant to, or become a
partner, member, principal, stockholder or other owner (other than a holder of
less than 1% of the outstanding voting shares of any publicly held company) of,
any Person that competes or has a reasonable potential for competing, anywhere
in the Restricted Territory, with the Business (as defined below).

                  10. Non-Solicitation of Employees. During the Restriction
Period, Executive shall not, directly or indirectly, for his own account or for
the account of any other Person, anywhere in the Restricted Territory, (i)
solicit for employment, employ or otherwise interfere with the relationship of
the Company or any of its Affiliates with any natural person throughout the
world who is or was employed by or otherwise engaged to perform services for the
Company or any of its Affiliates at any time during which Executive was employed
by the Company or (in the case of any such activity during the period of
Executive's employment with the Company) or during the six-month period
preceding such solicitation, employment or interference (in the case of any such
activity after the date of Executive's termination of employment), other than
any such solicitation or employment on behalf of the Company or its Affiliates
during Executive's employment with the Company, or (ii) induce any employee of
the Company or its Affiliates who is a member of management to engage in any
activity which Executive is prohibited from engaging in under any of Sections 8,
9, 10 or 11 or to terminate his employment with the

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Company. For purposes of this Section 10 and Section 11, the terms "solicit" and
"solicitation" mean any communication of any kind whatsoever, regardless of by
whom initiated, inviting, encouraging or requesting any person or entity to take
or refrain from taking any action.

                  11. Non-Solicitation of Customers. During the Restriction
Period, Executive shall not, directly or indirectly, for his own account or for
the account of any other Person, anywhere in the Restricted Territory, solicit
or otherwise attempt to establish any business relationship of a nature that is
competitive with the business or relationship of the Company or any of its
Affiliates with any Person which is or was a customer, client or distributor of
the Company or any of its Affiliates at any time during which Executive was
employed by the Company (in the case of any such activity during the period of
Executive's employment with the Company) or during the twelve-month period
preceding the Date of Termination (in the case of any such activity after the
date of Executive's termination of employment), other than any such solicitation
on behalf of the Company or any of its Affiliates during Executive's employment
with the Company.

                  12. Return of Documents. In the event of the termination of
Executive's employment for any reason, Executive shall deliver to the Company
all of the property of the Company and its Affiliates and the non-personal
documents and data of any nature and in whatever medium of each of the Company
and its Affiliates, and he shall not take with him any such property, documents
or data or any reproduction thereof, or any documents containing or pertaining
to any Confidential Information.

                  13. Work Product. Executive agrees to disclose in confidence
to the Company any and all inventions, improvements, designs, original works of
authorship, formulas, processes, computer software programs, databases and trade
secrets (including, but not limited to, market information and marketing
designs, proposals and concepts) (all taken together, the "Developments") that
Executive makes, conceives, first reduces to practice, or creates, either alone
or jointly with others while Executive is employed by the Company and that: (a)
result from any work performed by Executive for the Company, whether or not in
the normal course of Executive's duties or during normal business hours; (b)
reasonably relate to the actual or anticipated business, services, products,
research or development of Executive; or (c) are developed with the use of the
Company time, equipment, supplies or facilities. Executive must promptly
disclose Developments to the Company whether or not such Developments are
patentable, copyrightable or protectible as trade secrets. Executive understands
and agrees that all Developments shall be the sole and exclusive property of the
Company and shall constitute "work made for hire" (as that term is defined under
Section 101 of the U.S. Copyright Act, 17 U.S.C. Section 101) with the Company
being the person for whom the work was prepared and that all intellectual
property rights therein shall be the sole and exclusive property of the Company,
and that in the event that any such Development is deemed not to be a "work made
for hire," Executive hereby irrevocably assigns, transfers and conveys to the
Company, exclusively and perpetually, all right, title and interest which
Executive may have or acquire in and to such Development throughout the world,
including without limitation any copyrights and patents, and the right to secure
registrations, renewals, reissues, and extensions thereof. Executive agrees to
sign any documents and to do all things necessary, without additional
compensation, whether during Executive's employment or after, to assist the
Company to register, perfect, maintain

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and/or enforce the Company's rights in any Development, including without
limitation any patent, copyright, trade secret or other right or interest.

                  14. Injunctive Relief with Respect to Covenants; Forum, Venue
and Jurisdiction. Executive acknowledges and agrees that the covenants,
obligations and agreements of Executive contained in Sections 8, 9, 10, 11, 12,
13 and 14 relate to special, unique and extraordinary matters and that a
violation of any of the terms of such covenants, obligations or agreements will
cause the Company irreparable injury for which adequate remedies are not
available at law. Therefore, Executive agrees that the Company shall be entitled
to an injunction, restraining order or such other equitable relief (without the
requirement to post bond) as a court of competent jurisdiction may deem
necessary or appropriate to restrain Executive from committing any violation of
such covenants, obligations or agreements. These injunctive remedies are
cumulative and in addition to any other rights and remedies the Company may
have. The Company and Executive hereby irrevocably submit to the exclusive
jurisdiction of the courts of New York, and the Federal courts of the United
States of America, in each case located in New York City in respect of the
injunctive remedies set forth in this Section 14 and the interpretation and
enforcement of Sections 8, 9, 10, 11, 12, 13 and 14 insofar as such
interpretation and enforcement relate to any request or application for
injunctive relief in accordance with the provisions of this Section 14, and the
parties hereto hereby irrevocably agree that (a) the sole and exclusive
appropriate venue for any suit or proceeding relating solely to such injunctive
relief shall be in such a court, (b) all claims with respect to any request or
application for such injunctive relief shall be heard and determined exclusively
in such a court, (c) any such court shall have exclusive jurisdiction over the
person of such parties and over the subject matter of any dispute relating to
any request or application for such injunctive relief, and (d) each hereby
waives any and all objections and defenses based on forum, venue or personal or
subject matter jurisdiction as they may relate to an application for such
injunctive relief in a suit or proceeding brought before such a court in
accordance with the provisions of this Section 14. All disputes not relating to
any request or application for injunctive relief in accordance with this Section
14 shall be resolved by arbitration in accordance with Section 17 (b).

                  Notwithstanding any other provision hereof, the Company's
obligations to pay Executive any amount or provide Executive with any benefit or
right pursuant to Section 7(f) is subject to Executive's compliance with his
obligations under Sections 8 through 14, inclusive.

                  15. Assumption of Agreement. The Company shall require any
Successor thereto, by agreement in form and substance reasonably satisfactory to
Executive, to expressly assume and agree to perform this Agreement in the same
manner and to the same extent that the Company would be required to perform it
if no such succession had taken place. Failure of the Company to obtain such
agreement prior to the effectiveness of any such succession shall be a breach of
this Agreement and shall entitle Executive to compensation from the Company in
the same amount and on the same terms as Executive would be entitled hereunder
if the Company had terminated Executive's employment Without Cause as described
in Section 7, except that for purposes of implementing the foregoing, the date
on which any such succession becomes effective shall be deemed the Date of
Termination.

                  16. Entire Agreement. This Agreement (including the Exhibit
hereto) constitutes the entire agreement among the parties hereto with respect
to the subject matter

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hereof. All prior correspondence and proposals (including but not limited to
summaries of proposed terms) and all prior promises, representations,
understandings, arrangements and agreements relating to such subject matter
(including but not limited to those made to or with Executive by any other
Person and those contained in any prior employment, consulting or similar
agreement entered into by Executive and the Company or any predecessor thereto
or Affiliate thereof) are merged herein and superseded hereby.

                  17.      Miscellaneous.

                  (a) Binding Effect; Assignment. This Agreement shall be
binding on and inure to the benefit of the Company and its successors and
permitted assigns. This Agreement shall also be binding on and inure to the
benefit of Executive and his heirs, executors, administrators and legal
representatives. This Agreement shall not be assignable by any party hereto
without the prior written consent of the other parties hereto, except as
provided pursuant to this Section 17(a). The Company may effect such an
assignment without prior written approval of Executive upon the transfer of all
or substantially all of its business and/or assets (by whatever means), provided
that the Successor to the Company shall expressly assume and agree to perform
this Agreement in accordance with the provisions of Section 15.

                  (b) Arbitration. Any dispute or controversy arising under or
in connection with this Agreement (except in connection with any request or
application for injunctive relief in accordance with Section 14) shall be
resolved by binding arbitration. The arbitration shall be held in New York City
and, except to the extent inconsistent with this Agreement, shall be conducted
in accordance with the Commercial Arbitration Rules of the American Arbitration
Association then in effect at the time of the arbitration, and otherwise in
accordance with principles which would be applied by a court of law or equity.
The arbitrator shall be acceptable to both the Company and Executive. If the
parties cannot agree on an acceptable arbitrator, the dispute shall be heard by
a panel of three arbitrators, one appointed by the Company, one appointed by
Executive, and the third appointed by the other two arbitrators. All expenses of
arbitration shall be borne by the party who incurs the expense, or, in the case
of joint expenses, by both parties in equal portions.

                  (c) 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 conflicts of laws.

                  (d) Taxes. The Company may withhold from any payments made
under this Agreement all applicable taxes, including but not limited to income,
employment and social insurance taxes, as shall be required by law.

                  (e) Amendments. No provision of this Agreement may be
modified, waived or discharged unless such modification, waiver or discharge is
approved by the Board or a Person authorized thereby and is agreed to in writing
by Executive. No waiver by any party hereto at any time of any breach by any
other party hereto of, or compliance with, any condition or provision of this
Agreement to be performed by such other party shall be deemed a waiver of
similar or dissimilar provisions or conditions at the same or at any prior or
subsequent time. No waiver of any provision of this Agreement shall be implied
from any course of dealing between

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or among the parties hereto or from any failure by any party hereto to assert
its rights hereunder on any occasion or series of occasions.

                  (f) Severability. In the event that any one or more of the
provisions of this Agreement shall be or become invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions contained herein shall not be affected thereby.

                  (g) Notices. Any notice or other communication required or
permitted to be delivered under this Agreement shall be (i) in writing, (ii)
delivered personally, by courier service or by certified or registered mail,
first-class postage prepaid and return receipt requested, (iii) deemed to have
been received on the date of delivery or, if so mailed, on the third business
day after the mailing thereof, and (iv) addressed as follows (or to such other
address as the party entitled to notice shall hereafter designate in accordance
with the terms hereof):

                  (A)      If to the Company, to it at:

                           Office of the General Counsel
                           Instinet Corporation
                           875 Third Avenue
                           New York, New York

                  (B)      if to Executive, to him at his residential
                           address as currently on file with the
                           Company.

                  (h) Voluntary Agreement; No Conflicts. Executive represents
that he is entering into this Agreement voluntarily and that Executive's
employment hereunder and compliance with the terms and conditions of this
Agreement will not conflict with or result in the breach by Executive of any
agreement to which he is a party or by which he or his properties or assets may
be bound.

                  (i) Counterparts. This Agreement may be executed in
counterparts, each of which shall be deemed an original and all of which
together shall constitute one and the same instrument.

                  (j) Headings. The section and other headings contained in this
Agreement are for the convenience of the parties only and are not intended to be
a part hereof or to affect the meaning or interpretation hereof.

                  (k)      Certain Definitions.

                  "Affiliate": with respect to any Person, means any other
Person that, directly or indirectly through one or more intermediaries,
Controls, is Controlled by, or is under common Control with the first Person,
including but not limited to a Subsidiary of the first Person, a Person of which
the first Person is a Subsidiary, or another Subsidiary of a Person of which the
first Person is also a Subsidiary.

                  "Business": means the creation and delivery of transactional
products and products related to the financial services sector and brokerage
services related thereto delivered

                                       11
<PAGE>   12
largely, but not exclusively, through advanced technology, that permit or aid
the Company's customers to invest in, purchase and sell securities (whether
fixed income or equity, both during normal market hours and after hours), and
any and all other businesses that after the date hereof, and from time to time
during the Employment Period, are material with respect to the Company's and its
Affiliates' businesses.

                  "Control": with respect to any Person, means the possession,
directly or indirectly, severally or jointly, of the power to direct or cause
the direction of the management policies of such Person, whether through the
ownership of voting securities, by contract or credit arrangement, as trustee or
executor, or otherwise.

                  "Person": any natural person, firm, partnership, limited
liability company, association, corporation, company, trust, business trust,
governmental authority or other entity.

                  "Subsidiary": with respect to any Person, each corporation or
other Person in which the first Person owns or Controls, directly or indirectly,
capital stock or other ownership interests representing 50% or more of the
combined voting power of the outstanding voting stock or other ownership
interests of such corporation or other Person.

                  "Successor": of a Person means a Person that succeeds to the
first Person's assets and liabilities by merger, liquidation, dissolution or
otherwise by operation of law, or a Person to which all or substantially all the
assets and/or business of the first Person are transferred.

                  IN WITNESS WHEREOF, the Company has duly executed this
Agreement by its authorized representatives, and Executive has hereunto set his
hand, in each case effective as of the date first above written.

                                          INSTINET GROUP LLC

                                          By:
                                             -----------------------------
                                          Name:
                                          Title:

                                          Executive:

                                          -------------------------------
                                          Name:

                                       12<PAGE>   1
                                                           FINAL - MARCH 2, 2001

                         INSTINET 2000 STOCK OPTION PLAN
                     AS AMENDED AND RESTATED, MARCH 2, 2001

1.       PURPOSE.

         The purposes of the Plan are to induce certain employees and directors
to remain in the employ or service of the Company and its Affiliates, to attract
new individuals to enter into such employment or service and to encourage such
individuals to secure or increase their stock ownership in the Company. The
Board believes that the granting of Options under the Plan will promote
continuity of management and increased incentive and personal interest in the
welfare of the Company by those who are or may become primarily responsible for
shaping and carrying out the long-range plans of the Company and securing the
continued growth and financial success of the Company and the Reuters group of
companies. Options granted hereunder shall not be "incentive stock options"
within the meaning of Section 422 of the Code. This is an amendment and
restatement of the Instinet Group LLC 2000 Stock Option Plan and any Options
granted prior to such amendment and restatement shall be governed by the terms
hereof except as expressly provided otherwise.

2.       EFFECTIVE DATE OF THE PLAN.

         The Plan became effective on February 14, 2000 by action of the Board
after approval by the Board of Directors of Reuters on January 25, 2000, was
amended and restated on September 5, 2000, and is hereby amended and restated as
of March 2, 2001.

3.       STOCK SUBJECT TO PLAN.

     A. The number of shares available for grants of Options under the Plan
shall be as follows: (i) before an IPO, 10 percent of the outstanding shares of
Common Stock at the relevant time; and (ii) from and after an IPO, that number
of shares that equals 14 percent of the outstanding shares of Common Stock
determined immediately after such IPO. Shares of Common Stock delivered pursuant
to the exercise of Options may be outstanding shares, treasury shares or newly
issued shares of Common Stock as determined by the Committee in its discretion.
If any Options expire or terminate for any reason without having been exercised
in full, the shares subject thereto as to which exercise did not occur shall
again be available for grants under the Plan. In addition, any shares of Common
Stock that are used to pay the exercise price of an Option or to satisfy tax
withholding requirements shall again be available for grants under the Plan.

     B. If, in connection with the acquisition by the Company or one of its
Affiliates of another corporation or business enterprise that becomes an
Affiliate of the Company or a division of the Company or one of its Affiliates,
whether by exchange or purchase of stock, purchase of assets, merger or reverse
merger or otherwise (such corporation or business enterprise being hereafter
referred to as an "Acquired Subsidiary"), then-outstanding options with respect
to securities of the Acquired Subsidiary or of the entity disposing of the
Acquired Subsidiary held by employees, directors and/or consultants of an
Acquired Subsidiary are converted into or exchanged for options with respect to
the Common Stock (such options with respect to Common Stock, "Assumed Options"),
then (i) if such conversion or exchange occurs before an IPO, the

                                       1
<PAGE>   2

Assumed Options shall be treated as having been granted under the Plan for
purposes of applying the limitation of Section 3.A. above, and (ii) if such
conversion or exchange occurs after an IPO, the Assumed Options shall not be
treated as having been granted under the Plan for purposes of applying the
limitation of Section 3.A. above.

4.       COMMITTEE.

         The committee that administers the plan (the "Committee") as set forth
herein shall consist of two or more non-executive members of the Board, selected
by the Board from time to time or, if there is no such committee, the Board. At
all times while Reuters owns more than 50 percent of the Common Stock, the
chairperson of the Committee shall be a representative designated by Reuters who
is a member of the Board. A majority of the members of the Committee shall
constitute a quorum. All determinations of the Committee shall be made by a
majority of its members present at a meeting duly called and held, except as
specifically provided herein. Any decision or determination of the Committee
reduced to writing and signed by all of the members of the Committee shall be
fully as effective as if it had been made at a meeting duly called and held.

5.       ADMINISTRATION.

     A. Subject to the express provisions of the Plan, the Committee shall have
complete authority, in its discretion, to interpret the Plan, to prescribe,
amend and rescind rules and regulations relating to it, to determine the terms
and provisions of the respective option agreements (which need not be
identical), to determine the individuals (each a "Participant") to whom and the
times and the exercise prices at which Options shall be granted, the periods
during which each Option shall be exercisable, the number of shares of the
Common Stock to be subject to each Option, and to make all other determinations
necessary or advisable for the administration of the Plan. In making such
determinations, the Committee may take into account the nature of the services
rendered by the respective employees and directors, their present and potential
contributions to the success of the Company and its Affiliates and such other
factors as the Committee in its discretion shall deem relevant. The Committee's
determination on the matters referred to in this Section 5 shall be conclusive.
Any dispute or disagreement which may arise under or as a result of or with
respect to any Option shall be determined by the Committee, in its sole
discretion, and any interpretations by the Committee of the terms of any Option
shall be final, binding and conclusive.

     B. The Committee may, at any time or from time to time, delegate all or any
portion of its responsibilities and powers under the Plan to the Chief Executive
Officer of the Company, and all or any portion of its responsibilities that are
purely ministerial to any appropriate employee of the Company, except as
specifically provided herein. Notwithstanding the foregoing, no such delegation
may be made (i) with respect to the grant, interpretation or amendment of, or
exercise of discretionary authority or other non-ministerial acts with respect
to, Options granted to members of the Board or employees with a title of senior
vice president or above of the Company (or the equivalent level outside the
United States or at the Affiliate of the Company that employs them), or (ii)
with respect to the responsibilities and powers of the Committee under Section
13 hereof.

                                       2
<PAGE>   3

     C. Notwithstanding any other provision of the Plan, no action shall be
taken in connection with the administration of the Plan that would cause Reuters
to breach any listing rules of the London Stock Exchange or any other law or
regulation applicable to Reuters or applicable to the Company.

6.       ELIGIBILITY; GRANTS.

     A. Options may be granted only to (i) employees of the Company and
Designated Affiliates, (ii) members of the Board, including independent
directors, unless participation by such members is prohibited without the
consent of Reuters' shareholders under applicable law or under Reuters' policies
in effect on the date of this amendment and restatement, and (iii) any
individual who is expected to become an employee described in clause (i) (but
any Options granted to such an individual shall be forfeited if such individual
does not actually become such an employee).

     B. Each Option shall be evidenced by a written option agreement, executed
by the Company and the Participant, setting forth the terms and conditions of
the Option as determined by the Committee, including the requirements for
vesting and exercise thereof and the time and/or events that will result in
expiration of the Option. Such terms and conditions may include, without
limitation, requirements for continued employment or membership on the Board,
performance goals, and compliance with covenants not to compete or other
covenants.

     C. Notwithstanding any other provision of the Plan, except pursuant to
Section 13, in no event may the exercise price of Options be changed to be less
than the fair market value of the Common Stock on the date of grant, nor may
Options be granted in connection with the cancellation or replacement of Options
that have been previously granted, unless the aggregate and per-share exercise
prices of the new Options are equal to or greater than the aggregate and
per-share exercise prices of the Options that are cancelled or replaced.

7.       EXERCISE PRICES.

     A. The initial per-share exercise price of any Option shall be determined
by the Committee, but in no event shall it be less than the fair market value of
a share of the Common Stock on the date of grant.

     B. For all purposes of the Plan, the fair market value of a share of the
Common Stock on any date shall be determined by the Committee as follows:

         (i) If the Common Stock is listed on any established stock exchange or
a national market system, including without limitation The Nasdaq Stock Market,
its fair market value on a particular day shall be the reported closing selling
price, regular way, for the Common Stock on the preceding day on the principal
securities exchange or national market system on which the Common Stock is then
listed for trading. If there are no sales of Common Stock on such preceding day,
then the reported closing selling price, regular way, for the Common Stock on
the next preceding day for which such closing selling price is quoted shall be
determinative of fair market value.

                                       3
<PAGE>   4

         (ii) If the Common Stock is not traded on an established stock exchange
or a national market system, its fair market value shall be determined in good
faith by the Committee, based upon an independent appraisal report (a) reviewed
by the Board of Directors of Reuters or its designee while Reuters owns more
than 50 percent of the Common Stock, and (b) approved by the Board. The
methodologies used in such reports from time to time shall be consistent, unless
the Board of Directors of Reuters (or if applicable, the Board), specifically
determines that a change in such methodologies is appropriate given changes in
circumstances. All determinations of the Committee, the Board of Directors of
Reuters and the Board pursuant to this Section 7.B (ii) shall be conclusive and
binding on all persons for all purposes of the Plan.

8.       OPTION TERM.

         The original terms of Options shall be determined by the Committee, but
shall not exceed ten years from the date of grant.

9.       LIMITATIONS ON AMOUNT OF OPTIONS GRANTED.

         During the term of the Plan, no Participant shall be granted Options
under the Plan to purchase more than 10% of the total number of shares of Common
Stock available under the Plan.

10.       VESTING AND EXERCISE OF OPTIONS.

     A. Options shall become vested in accordance with the terms and conditions
set forth in the applicable option agreement. If the applicable option agreement
does not provide otherwise, then subject to the provisions of Section 12, an
Option shall vest (i) as to one quarter of the shares (rounded to the nearest
whole number of shares) subject thereto on the first anniversary of the date of
grant of the Option, (ii) with respect to three quarters of the shares subject
thereto, an additional 1/36 of such (rounded to the nearest whole number of
shares) on the last day of each calendar month that begins thereafter, ending
with the 35th such calendar month, and (iii) as to the remaining shares subject
thereto on the fourth anniversary of the date of grant of the Option. In no
event shall any Option be vested before the first anniversary of the date of
grant of the Option, except pursuant to Section 12 hereof.

     B. An Option may be exercised during its term as to any shares covered
thereby at any time after the later of (i) the time that it has vested with
respect to such shares and (ii) the occurrence of an IPO (as defined below), but
subject to the provisions of Section 12 and the applicable option agreement. In
addition, any vested Option whose term equals or exceeds seven years shall, to
the extent not otherwise exercisable on the date six months prior to the end of
such Option's term, become exercisable on such date.

     C. An Option may be exercised only by a written notice of intent to
exercise such Option or with respect to a specific number of shares of the
Common Stock and payment to the Company of the amount of the exercise price for
the number of shares of the Common Stock so specified; provided, however, that,
if the Committee shall in its sole discretion so determine, all or any

                                       4
<PAGE>   5

portion of such payment may be made in kind by the delivery of shares (whether
actual delivery or by attestation) of the Common Stock having a fair market
value equal to the portion of the exercise price so paid; provided, further,
however, that no portion of such payment may be made by delivering shares of the
Common Stock acquired upon the exercise of an Option if such shares shall not
have been held by the Participant for at least six months; and provided,
further, however, that following an IPO, and subject to the requirements of
Regulation T (as in effect from time to time) promulgated under the Exchange Act
and any other applicable law or regulation, the Committee may implement
procedures to allow a designated broker to make payment of all or any portion of
the exercise price and taxes payable upon the exercise of an Option and receive,
on behalf of such Participant, all or any portion of the shares of the Common
Stock issuable upon such exercise.

11.      TRANSFERABILITY.

         No Option shall be assignable or transferable except by will and/or by
the laws of descent and distribution and, during the life of any Participant,
each Option or granted to him or her may be exercised only by him or her.

12.      TERMINATION OF EMPLOYMENT OR SERVICE.

     A. Except as otherwise determined by the Committee at the time of grant or
thereafter, the consequences for a Participant's Options of the Participant's
Termination shall be as set forth in this Section 12, based upon the reason for
the Termination.

     B. If a Participant experiences a Termination for Cause (as defined below),
each of his or her Outstanding Options shall expire as of the date of the
Termination.

     C. If a Participant experiences a Termination as a result of death or
long-term disability pursuant to the long-term disability plan of the Company or
any of its Affiliates covering the Participant, each of his or her Outstanding
Options shall be fully vested and shall remain outstanding until, and expire
upon, the earlier of the first anniversary of the date of the Termination and
the end of its original term.

     D. If a Participant experiences an Involuntary Termination within the
Protected Period, then: (i) any Outstanding Option or portion thereof that is
not scheduled to vest by the end of the Continuation Period shall expire as of
the date of the Termination; (ii) his or her other outstanding Options or
portions thereof shall continue to vest in accordance with their original terms
during the Continuation Period as if he or she had remained employed; and (iii)
each Outstanding Option or portion thereof that vests in accordance with clause
(ii) or that has vested as of the date of Termination shall remain outstanding
until, and expire upon, the earlier of the 30th day following the end of the
Continuation Period and the end of its original term.

     E. With respect to Options granted prior to March 2, 2001, if a Participant
experiences a Termination as a result of retirement with the consent of the
Committee, then: (i) each of his or her Outstanding Options or portion thereof
that has not vested as of the date of the Termination shall expire as of the
date of the Termination; and (ii) each of his or her Outstanding Options or

                                       5
<PAGE>   6

portion thereof that has vested as of the date of the Termination shall remain
outstanding until, and expire upon, the earlier of the third anniversary of the
Termination and the end of its original term.

         With respect to Options granted on and after March 2, 2001, if a
Participant experiences a Termination as a result of a Qualifying Retirement (i)
prior to an IPO, then (a) each of his or her Outstanding Options or portion
thereof that has not vested as of the date of the Termination shall expire as of
the date of the Termination; and (b) each of his or her Outstanding Options or
portion thereof that has vested as of the date of the Termination shall remain
outstanding until, and expire upon, the earlier of the third anniversary of the
Termination and the end of its original term or (ii) after an IPO, then (a) each
of his or her Outstanding Options or portion thereof that has not vested as of
the date of the Termination shall continue to vest until the third anniversary
of such Termination and (b) each of his or her Outstanding Options or portion
thereof that has vested as of the end of such third anniversary shall remain
outstanding until, and expire upon, the earlier of the 30th day following the
third anniversary of such Termination and the end of its original term.

     F. With respect to Options granted prior to March 2, 2001, if a Participant
experiences a Termination for any reason not described in Sections 12.A. through
E. above, then: (i) each of his or her Outstanding Options or portion thereof
that has not vested as of the date of the Termination shall expire as of the
date of the Termination; and (ii) each of his or her Outstanding Options or
portion thereof that has vested as of the date of the Termination shall remain
outstanding until, and expire upon, the earlier of the 60th day following the
date of the Termination and the end of its original term.

         With respect to Options granted on and after March 2, 2001, if a
Participant experiences a Termination for any reason not described in Sections
12A through E. above (i) prior to an IPO, each Outstanding Option shall
immediately expire as of the date of Termination, or (ii) after an IPO, provided
such Participant executes a valid release and waiver in such form as the
Committee shall prescribe, then: (a) each of his or her Outstanding Options or
portion thereof that has not vested as of the date of the Termination shall
continue to vest during any applicable Severance Period and (b) each of his or
her Outstanding Options or portion thereof that has vested as of the end of such
applicable Severance Period shall remain outstanding until, and expire upon, the
earlier of the 30th day following the end of such applicable Severance Period
and the end of its original term.

13.      ADJUSTMENTS.

     A. In the event that a dividend shall be declared upon the Common Stock
payable in shares of the Common Stock, or if there is a stock split or reverse
stock split affecting the Common Stock, the number of shares of the Common Stock
then subject to, and the exercise price of, all Participants' Outstanding
Options and the number of shares of the Common Stock reserved for issuance in
accordance with the provisions of the Plan but not yet covered by an Option and
the number of shares set forth in Section 9 shall be proportionately adjusted in
an equitable manner as determined by the Committee.

                                       6
<PAGE>   7

     B. In the event that the outstanding shares of the Common Stock shall be
changed into or exchanged for a different number or kind of shares of stock or
other securities of the Company or of another corporation, or partly into or for
such shares or securities and partly into or for the right to receive a cash
payment, or into the right to receive cash as the full and only consideration
for their shares thereof, whether through reorganization, recapitalization,
stock split-up, combination of shares, sale of assets, merger or consolidation
(a "Transaction"), the Committee shall adjust the number and kind of shares
reserved for issuance in accordance with the provisions of the Plan but not
covered by an Option and the number and kind of shares referred to in Section 9
in such a manner as it deems appropriate to reflect such Transaction and enable
the Plan to continue to be used to further its original purposes without
enlargement or dilution of the benefits thereunder. In addition, the Committee
may make such amendments or adjustments, if any, of all Participants'
Outstanding Options as it may deem equitable and appropriate, including without
limitation by arranging for the assumption of each Participant's Outstanding
Options by the surviving corporation in such Transaction or an affiliate thereof
(with such adjustments to the number and kind of shares subject thereto and to
the exercise price thereof as shall be necessary or appropriate); provided, that
any Outstanding Options that are not so assumed may be cancelled with such
consideration the Committee in its discretion determines.

     C. In the event that the Company effects a spinoff, splitup or similar
transaction in which the shareholders of the Company receive a distribution of
stock of one or more subsidiaries of the Company, then the Committee may adjust
the number and kind of shares reserved for issuance in accordance with the
provisions of the Plan but not covered by an Option, the number and kind of
shares referred to in Section 9, and/or the number and kind of shares then
subject to and/or the exercise price of Outstanding Options, in such a manner as
it deems appropriate to reflect such change and enable the Plan to continue to
be used and Outstanding Options to continue to function to further their
original purposes without enlargement or dilution of the benefits thereunder.
Such adjustments may include, without limitation, causing some or all of the
Outstanding Options of some or all of the Participants to be converted into
options with respect to a distributed subsidiary.

     D. The Company intends to make an initial grant of Options upon or shortly
after the Effective Date of the Plan. The exercise price of these initial
Options will be based upon an independent appraisal report, as contemplated by
Section 7.B.(ii) hereof. It is expected that after these initial grants are
made, the businesses of the Company and its Affiliates will be reorganized. If,
after completion of such reorganization, the Remuneration Committee of the Board
of Directors of Reuters determines that it is appropriate to do so, it shall
make such adjustments to the number of shares and/or the exercise price of the
Options included in such initial grant and any subsequently granted Options, the
exercise price of which was based upon the same report, as it may determine to
be necessary to preserve the value (without enlargement or diminishment) of such
Options, taking into account the effect of any adjustment of the number of
outstanding shares of Common Stock that may have been made in connection with or
following such reorganization.

     E. In the event that there shall be any change, other than as specified in
Section 13.A., B., C. or D., in the number or kind of outstanding shares of the
Common Stock, or of any stock or other securities into which the Common Stock
shall have been changed, or for which it shall have been

                                       7
<PAGE>   8

exchanged or any other material corporate event occurs, then, if the Committee
shall, in its sole discretion, determine that such change or event equitably
requires an adjustment in the number or kind of shares or securities then
subject to and/or the exercise price of any Outstanding Option and the number or
kind of shares or securities reserved for issuance in accordance with the
provisions of the Plan but not yet covered by an Option and the number or kind
of shares or securities referred to in Section 9, such adjustment shall be made
by the Committee and shall be effective and binding for all purposes of the Plan
and of each option agreement entered into in accordance with the provisions of
the Plan, taking into account the effect of any adjustment of the number of
outstanding shares of Common Stock that may have been made in connection with or
following such reorganization.

     F. No adjustment or substitution provided for in this Section 13 shall
require the Company to sell a fractional share pursuant to any Option. Any
fractional share resulting from an adjustment or substitution provided for in
this Section 13 may be rounded up to the nearest whole share.

     G. In the event of the dissolution or liquidation of the Company, each
Option, to the extent not theretofore exercised, shall terminate forthwith.

14.      PURCHASE FOR INVESTMENT, WITHHOLDING AND WAIVERS.

     A. Unless the shares to be issued upon the exercise of an Option by a
Participant shall be registered prior to the issuance thereof under the
Securities Act, such Participant will, as a condition of the Company's
obligation to issue such shares, be required to give a representation in writing
that he or she is acquiring such shares for his or her own account as an
investment and not with a view to, or for sale in connection with, the
distribution of any thereof.

     B. In the event of the death of a Participant, a condition of exercising
any Option shall be the delivery to the Company of such tax waivers and other
documents as the Committee shall determine.

     C. A condition of exercising any Option shall be the entry by the person
exercising the same into such arrangements with the Company with respect to all
required tax or other withholding as the Committee may determine. Such
arrangements may include the withholding of shares of Common Stock that are
otherwise to be delivered pursuant to such exercise, but only in the minimum
amount necessary to satisfy the applicable tax withholding requirements.

15.      NO STOCKHOLDER STATUS.

         Neither any Participant nor his or her legal representatives, legatees
or distributees shall be or be deemed to be the holder of any share of the
Common Stock covered by an Option unless and until a certificate for such share
has been issued or an appropriate book entry evidencing ownership of such share
by the Participant has been made. Upon payment of the purchase price thereof, a
share issued upon exercise of an Option shall be fully paid and non-assessable.

                                       8
<PAGE>   9

16.      NO RESTRICTIONS ON CORPORATE ACTS.

         Neither the existence of the Plan nor any Option shall in any way
affect the right or power of the Company or its stockholders to make or
authorize any or all adjustments, recapitalizations, reorganizations or other
changes in the Company's capital structure or its business, or any merger or
consolidation of the Company, or any issue of bonds, debentures, preferred, or
prior preference stock ahead of or affecting the Common Stock or the rights
thereof, or dissolution or liquidation of the Company, or any sale or transfer
of all or any part of its assets or business, or any other corporate act or
proceeding whether of a similar character or otherwise.

17.      PARTICIPANTS OUTSIDE THE U.S.

         Notwithstanding any other provision of the Plan, the Committee may make
such rules and regulations and such amendments to the Plan, for purposes of
making grants to Participants subject to the laws of any jurisdiction outside
the United States, as it determines to be necessary to comply with such laws or
to take account of the tax or other consequences thereof, including without
limitation the grant of stock appreciation rights in lieu of Options; PROVIDED,
that such rules, regulations and amendments shall be subject to the limitations
set forth in Sections 3, 9 and 19.

18.      NO EMPLOYMENT OR SERVICE RIGHT.

         Neither the existence of the Plan nor the grant of any Option shall
require the Company or any of its Affiliates to continue any Participant in the
employ of the Company or such Affiliate or require the Company to continue any
Participant as a member of the Board.

19.      TERMINATION AND AMENDMENT OF THE PLAN.

     A. The Board may at any time terminate the Plan or make such modifications
of the Plan as it shall deem advisable, subject to Section 19.B.; PROVIDED,
HOWEVER, that the Board may not (nor may the Committee pursuant to Section 17),
without further approval of the holders of a majority of the shares of the
Common Stock present in person or by proxy at any special or annual meeting of
the stockholders, increase the number of shares as to which Options (or stock
appreciation rights in lieu thereof granted pursuant to Section 17) may be
granted under the Plan (except as adjusted in accordance with Section 13), amend
Section 6.C.,or extend the period during which an Option may be granted or
exercised beyond 10 years from the date of grant. Except as otherwise provided
in Section 13, no termination or amendment of the Plan may, without the consent
of the Participant to whom any Option shall theretofore have been granted,
adversely affect the rights of such Participant under such Option.

     B. Amendments to Sections 6.C., 10, 12, 13, 19 or 21 may only be made to
the Plan with the unanimous recommendation of all members of the Committee. Any
actions of the Committee pursuant to Sections 13.B., C., D. or E. must also be
by unanimous vote of all members of the Committee.

                                       9
<PAGE>   10

20.      EXPIRATION AND TERMINATION OF THE PLAN.

         The Plan shall terminate at such time as the Board may determine.
Options may be granted under the Plan at any time and from time to time prior to
its termination. Any Option outstanding under the Plan at the time of the
termination of the Plan shall remain in effect until such Option shall have been
exercised or shall have expired in accordance with its terms.

21.      DEFINITIONS.

         The terms set forth below have the meanings set forth in this Section
         21.

         ACQUIRED SUBSIDIARY has the meaning set forth in Section 3.B.

         An AFFILIATE of the Company means (i) any subsidiary of the Company and
(ii) at any time before an IPO while Reuters owns more than 50 percent of the
Common Stock, any subsidiary of Reuters.

         ASSUMED OPTIONS has the meaning set forth in Section 3.B.

         The BOARD means the Board of Directors of the Company.

         The BOARD OF DIRECTORS OF REUTERS means either the full Board of
Directors of Reuters or a duly authorized committee thereof.

         BUSINESS COMBINATION means a reorganization, merger or consolidation or
sale or other disposition of all or substantially all of the assets of the
Company or the acquisition of the stock or assets of another entity.

         CAUSE, with respect to any Participant, means: (a) the commission by
the Participant of any act or omission that would constitute a crime under
applicable federal, state or foreign law, (b) the commission by the Participant
of any act of moral turpitude, (c) fraud, dishonesty or other acts or omissions
by the Participant that result in a breach of any fiduciary or other material
duty to the Company and/or its Affiliates, (d) continued alcohol or other
substance abuse by the Participant that renders the Participant incapable of
performing his or her material duties to the satisfaction of the Company and/or
its Affiliates, (e) any act or omission by the Participant that is a violation
of any applicable federal or state or other securities law, regulation or rule
or of any applicable rule or regulation of any self-regulatory organization, or
(f) any failure by the Participant to act in the best interests of the
shareholders of the Company. In general, whether or not a Termination is for
Cause shall be determined by the Committee or its delegee, in its, his or her
sole discretion. However, while the Company remains a wholly owned subsidiary of
Reuters, the following shall apply. The Board of Directors of Reuters shall have
the power, in its sole discretion, to terminate a Participant for a Cause
described in clause (f) of this definition, and to determine that a Termination
of a Participant that it did not initiate is for such a Cause, subject to the
following procedures. If the Board of Directors of Reuters makes a preliminary
determination that such a Cause exists, it shall give the Participant involved
notice of that determination, setting forth the basis for the determination. The
Participant shall be given a reasonable opportunity to present evidence to the
Board of Directors of Reuters showing that no such Cause in fact exists, after
which the Board of Directors of Reuters shall make its final determination,
which shall be binding on the Company, the Participant and all other persons.

         A CHANGE OF CONTROL means the occurrence of any one of the following
         after an IPO:

                  (i) The acquisition by any Person of beneficial ownership
         (within the meaning of Rule 13d-3 promulgated under the Exchange Act)
         of the Requisite Percentage of either the Outstanding Company Common
         Stock or the combined voting power of the

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<PAGE>   11

         Outstanding Company Voting Securities; provided, however, that for
         purposes of this subsection (i), the following acquisitions shall not
         constitute a Change of Control: (a) any acquisition directly from the
         Company, (b) any acquisition by the Company or Reuters Group PLC or its
         controlled affiliates, (c) any acquisition by any employee benefit plan
         (or related trust) sponsored or maintained by the Company or any
         corporation controlled by the Company or (d) any acquisition by any
         corporation pursuant to a transaction which complies with clauses (a),
         (b) and (c) of subsection (iii) of this definition; or

                  (ii) The members of the Incumbent Board cease for any reason
         to constitute at least a majority of the Board; provided, however, that
         any individual becoming a director subsequent to the date hereof whose
         election, or nomination for election by the Company's shareholders, was
         approved by a vote of at least a majority of the directors then
         comprising the Incumbent Board shall be considered as though such
         individual were a member of the Incumbent Board, but excluding, for
         this purpose, any such individual whose initial assumption of office
         occurs as a result of an actual or threatened election contest with
         respect to the election or removal of directors or other actual or
         threatened solicitation of proxies or consents by or on behalf of a
         Person other than the Board; or

                  (iii) Consummation of a Business Combination, in each case,
         unless, following such Business Combination, (a) all or substantially
         all of the individuals and entities who were the beneficial owners,
         respectively, of the Outstanding Company Common Stock and Outstanding
         Company Voting Securities immediately prior to such Business
         Combination beneficially own, directly or indirectly, more than 50
         percent of, respectively, the then outstanding shares of common stock
         and the combined voting power of the then outstanding voting securities
         entitled to vote generally in the election of directors, as the case
         may be, of the corporation resulting from such Business Combination
         (including, without limitation, a corporation which as a result of such
         transaction owns the Company or all or substantially all of the
         Company's assets either directly or through one or more subsidiaries)
         in substantially the same proportions as their ownership, immediately
         prior to such Business Combination of the Outstanding Company Common
         Stock and Outstanding Company Voting Securities, as the case may be,
         (b) no Person (excluding any corporation resulting from such Business
         Combination or any employee benefit plan (or related trust) of the
         Company or such corporation resulting from such Business Combination)
         beneficially owns, directly or indirectly, the Requisite Percentage of,
         respectively, the then-outstanding shares of common stock of the
         corporation resulting from such Business Combination or the combined
         voting power of the then-outstanding voting securities of such
         corporation except to the extent that such ownership existed prior to
         the Business Combination and (c) at least a majority of the members of
         the board of directors of the corporation resulting from such Business
         Combination were members of the Incumbent Board at the time of the
         execution of the initial agreement, or of the action of the Board,
         providing for such Business Combination.

In addition, the consummation of a Transaction that would be a Change of Control
as defined above but for the fact that it occurs before an IPO shall be a Change
of Control unless it was initiated by the management of the Company.
Notwithstanding the foregoing, unless the Board of Directors in its sole
discretion determines otherwise, none of the foregoing events shall be a Change
of Control if (i) they occur in connection with or as a result of a strategic
merger, business combination, joint venture or asset transfer with or to another
entity that participates in

                                       11
<PAGE>   12

the same or similar businesses to the businesses of the Company, or (ii)
following the occurrence of such event, Reuters owns a percentage of the
outstanding Common Stock that is at least equal to 30 percent and exceeds the
percentage owned by any other single shareholder.

         The CODE means the Internal Revenue Code of 1986, as amended.

         The COMMITTEE has the meaning set forth in Section 4 hereof.

         COMMON STOCK means the Common Stock, $.01 par value, of the Company.

         The COMPANY means Instinet Group LLC, or any successor thereto.

         The CONTINUATION PERIOD means (i) the period following an Involuntary
Termination described in Section 12.D. that is defined as the "Continuation
Period" in the applicable option agreement or (ii) if no such definition is
included in the applicable option agreement, the period of one year following an
Involuntary Termination described in Section 12.D.

         DESIGNATED AFFILIATES means Affiliates of the Company designated by the
Board for participation in the Plan.

         The EXCHANGE ACT means the Securities Exchange Act of 1934, as amended.

         The INCUMBENT BOARD means the individuals who, as of the date of an
IPO, constitute the Board.

         An INVOLUNTARY TERMINATION shall mean a Termination of a Participant by
the Company or an Affiliate without Cause, and any other types of Termination
specifically provided for in the applicable option agreement.

         An IPO means the sale of 10 percent or more of the outstanding shares
of Common Stock to the public pursuant to a registration statement on Form S-1
or any successor or similar form (other than Form S-8) filed to register equity
interests in the Company under the Securities Act.

         An OPTION means an option to purchase Common Stock granted under the
Plan.

         OUTSTANDING COMPANY COMMON STOCK means, as of any given time, the
then-outstanding shares of Common Stock.

         OUTSTANDING COMPANY VOTING SECURITIES means, as of any given time, the
then-outstanding voting securities of the Company entitled to vote generally in
the election of directors.

         An OUTSTANDING OPTION means, as of any given time, an Option or portion
thereof that has been granted to a Participant that has not, before that time,
been exercised, expired or otherwise been cancelled or terminated.

         PARTICIPANT has the meaning set forth in Section 5 hereof.

         PERSON means any individual, entity or group within the meaning of the
Exchange Act.

         The PLAN means the Instinet 2000 Stock Option Plan, amending and
restating the Instinet Group LLC 2000 Stock Option Plan, as of March 2, 2001.

         The PROTECTED PERIOD means (i) the period following a Change of Control
that is defined as the "Protected Period" in the applicable option agreement or
(ii) if no such definition is included in the applicable option agreement, the
period of one year following a Change of Control.

         QUALIFYING RETIREMENT, with respect to a Participant, means a
Termination, other than an Involuntary Termination or a Termination for Cause,
death or disability, on or after such Participant's 55th birthday provided that
on such Termination the sum of (i) such Participant's age and (ii) the number of
complete years such Participant provided service to the Company equals or
exceeds 60.

                                       12
<PAGE>   13

         The REQUISITE PERCENTAGE means a percentage in excess of the highest of
30 percent and the percentages of the Outstanding Company Common Stock and the
Outstanding Company Voting Securities owned by Reuters and its controlled
affiliates.

         REUTERS means Reuters Group PLC.

         The SECURITIES ACT means the Securities Act of 1933, as amended.

         SEVERANCE PERIOD, with respect to a Participant, means the period
following such Participant's Termination during which such Participant is
entitled to severance payments by the Company or any of its Affiliates, if any,
pursuant to an effective employment agreement or as may be determined by the
Company at the time of Termination.

         TERMINATION of a Participant occurs when the Participant first is not
either (i) an employee of the Company or any Affiliate or (ii) a member of the
Board. A Termination shall not be considered to have occurred if the Participant
(a) transfers from the employment of the Company or any Designated Affiliate to
the employment of an entity that is, at the time of such transfer, an Affiliate
of the Company but not a Designated Affiliate, (b) ceases to be an employee of
the Company or any Affiliate of the Company but becomes or remains a member of
the Board, or (c) ceases to be a member of the Board but becomes or remains an
employee of the Company or any Affiliate (although such event may result in the
Participant becoming ineligible for further grants of Options under the Plan).
However, in the case of a Participant who is employed by an Affiliate of the
Company, a Termination shall be considered to have occurred if such entity
ceases to be an Affiliate of the Company, unless immediately following that
event the Participant is an employee of the Company or any entity that is an
Affiliate of the Company or a member of the Board.

         TRANSACTION has the meaning set forth in Section 13.B.

                                       13

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