Document:

exv10w59

EXHIBIT 10.59

EXECUTIVE EMPLOYMENT AGREEMENT

THIS EXECUTIVE EMPLOYMENT AGREEMENT (the “Agreement”) is dated as of November ___, 2010 (the
“Effective Date”) and is by and between GAIN Capital Holdings, Inc., a corporation organized under
the laws of Delaware, including its subsidiaries and affiliates (the “Company”) and Alexander
Bobinski, a resident of (“Executive”). This Agreement supersedes the employment offer
letter, dated as of August 10, 2005, by and between the Company and the Executive.

Recitals

WHEREAS, the Company desires to secure for itself the services of Executive, and the Executive
wishes to continue to furnish such services to the Company, pursuant to the terms and subject to
the conditions hereinafter set forth;

WHEREAS, Executive has served as Executive Vice President of Operations of the Company since June
1, 2009;

WHEREAS, the parties wish to amend and restate Executive’s terms of employment as set forth in this
Agreement;

NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and obligations set
forth herein, the parties hereto, intending to be legally bound, hereby agree as follows:

     1. Employment Term. The Company hereby agrees to employ the Executive
directly or through a subsidiary, and the Executive hereby agrees to continue such employment, as
the Executive Vice President of Operations of the Company, through the third anniversary of the
Effective Date, unless terminated sooner pursuant to Section 8 hereof (the “Term”).

     2. Representations and Warranties. The Executive represents that Executive
is entering into this Agreement voluntarily and that Executive’s employment hereunder and his
compliance with the terms and conditions of this Agreement will not conflict with or result in the
breach of any agreement to which Executive is a party or by which Executive may be bound, or any
legal duty that Executive owes or may owe to another.

     3. Duties and Extent of Services.

     (a) During the Term, the Executive shall serve as Executive Vice President of
Operations of the Company and its primary domestic operating subsidiaries, with such duties,
responsibilities and authority as are consistent with such position, subject to the oversight of
the Company (the “Board”), and shall so serve faithfully and to the best of Executive’s ability
under the direction and supervision of the Chief Executive Officer. As an executive officer of the
Company, the Executive shall be entitled to all of the benefits and protections to which all
officers of the Company are entitled pursuant to the Company’s Amended and Restated Certificate of
Incorporation, which shall include, but not be limited to, the rights of indemnification set forth
in such Amended and Restated Certificate of Incorporation, and coverage under the Company’s
directors’ and officers’ liability insurance as in effect from time to time.

     (b) During the Term, the Executive agrees to devote substantially his full time,
attention, and energies to the Company’s business and shall not be engaged in any other business
activity, whether or not such business activity is pursued for gain, profit, or other pecuniary
advantage. Subject, however, to Section 11, 12 and 13 herein, the Executive may serve in
charitable and civic positions and as a director of other companies with the prior consent of the
Chief Executive Officer, which consent shall not be

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unreasonably withheld. The Executive covenants, warrants, and represents that he shall devote
his full and best efforts to the fulfillment of his employment obligations, and he shall exercise
the highest degree of loyalty and the highest standards of conduct in the performance of his
duties.

     4. Compensation.

     (a) Base Salary. The Company shall pay the Executive a base salary (the
“Base Salary”) of not less than $225,000 per year, payable in monthly installments. The Base Salary
shall be reviewed by the Board annually and may be increased in the Board’s sole discretion. The
Executive shall not receive any additional compensation from any subsidiary of the Company
following the date hereof.

     (b) Bonus. During the Executive’s employment under this Agreement, the
Company shall cause the Executive to be eligible to participate in each bonus or incentive
compensation plan, program or policy maintained by the Company from time to time, in whole or in
part, for the executive officers of the Company (each, an “Incentive Compensation Plan” and
payments thereunder, “Incentive Compensation”). The Executive’s target and maximum compensation
under, and his performance goals and other terms of participation in, each Incentive Compensation
Plan shall be determined by the Company’s Compensation Committee in its sole discretion. Any such
Incentive Compensation is not guaranteed and is contingent upon the Executive and the Company
achieving deliverables or goals agreed upon. Any such Incentive Compensation shall not be
considered “earned” by the Executive until the Company has allocated payment to be made to the
Executive for any performance period. Payment under any such Incentive Compensation Plan shall be
made, if at all, after the close of the relevant performance period and by no later than March 15th
of the year after the year in which the performance period ends. Notwithstanding anything herein
to the contrary, to the extent permitted or required by governing law, the Company’s Compensation
Committee shall have discretion to require the Executive to repay to the Company the amount of any
Incentive Compensation to the extent the Compensation Committee or Board determines that such bonus
was not actually earned by the Executive due to (A) the amount of such payment was based on the
achievement of financial results that were subsequently the subject of a material accounting
restatement that occurs within three years of such payment (except in the case of a restatement due
to a change in accounting policy or simple error); (B) the Executive has engaged in fraud, gross
negligence or intentional misconduct; or (C) the Executive has deliberately misled the market or
the Company’s stockholders regarding the Company’s financial performance.

     5. Benefits. During the Term, the Executive shall be entitled to
participate in any and all benefit programs and arrangements generally made available by the
Company to executive officers, including, but not limited to, pension plans, contributory and
noncontributory welfare and benefit plans, disability plans and medical, death benefit and life
insurance plans for which the Executive may be eligible during the Term. Furthermore, the Executive
shall be permitted four (4) weeks of paid time off (“PTO”) during each calendar year. Accrued paid
leave may be used for vacation, professional enrichment and education, sickness and disability.
Unused leave shall not accrue from one calendar year to another.

     6. Expenses. During the Executive’s employment, the Executive will be
reimbursed for travel, entertainment and other out-of-pocket expenses reasonably incurred by
Executive on behalf of the Company in the performance of Executive’s duties hereunder, so long as
(a) such expenses are consistent with the type and amount of expenses that customarily would be
incurred by similarly situated corporate executives in the United States; and (b) the Executive
timely provides copies of receipts for expenses in accordance with Company policy.

     7. Adherence to Company Policy. The Executive acknowledges that he is
subject to insider information policies designed to preclude its employees from violating the
federal securities laws by
trading on material, non-public information or passing such information on to others in breach
of any duty

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owed to the Company or any third party. The Executive shall promptly execute any
agreements generally distributed by the Company or to its employees requiring such employees to
abide by its insider information policies.

     8. Termination.

     (a) Disability. In accordance with applicable law, the Company may
terminate the Executive’s employment at any time after the Executive becomes Disabled. As used
herein, “Disabled” means the incapacity of the Executive, due to injury, illness, disease, or
bodily or mental infirmity, to engage in the performance of substantially all of the usual duties
of employment with the Company.

     (b) Death. The Executive’s employment with the Company will terminate upon
the death of the Executive.

     (c) Termination with Cause. The Company may terminate the Executive’s
employment at any time for Cause by providing written notice of such termination to the Executive.
As used herein, “Cause” means any of the following, as determined by the Board:

          (i) the Executive’s material breach of this Agreement;

          (ii) the Executive’s gross negligence (other than as a result of disability or
occurring after the Executive’s provision of notice in connection with a resignation for Good
Reason) or willful misconduct in carrying out his duties hereunder, resulting in harm to the
Company;

          (iii) the Executive’s material breach of any of his fiduciary obligations as an
officer of the Company;

          (iv) any conviction by a court of law of, or entry of a pleading of guilty or nolo
contendere by the Executive with respect to, a felony or any other crime for which fraud or
dishonesty is a material element, excluding traffic violations;

          (v) the Executive willfully or recklessly engages in conduct which either is
materially or demonstrably injurious to the Company, monetarily or otherwise.

     For purposes of determining Cause, no act or omission by the Executive shall be considered
“willful” unless it is done or omitted in bad faith or without reasonable belief that the
Executive’s action or omission was in the best interests of the Company. Any act or failure to act
based upon: (a) authority given pursuant to a resolution duly adopted by the Board, or (b) advice
of counsel for the Company, shall be conclusively presumed to be done or omitted to be done by the
Executive in good faith and in the best interests of the Company. In addition, as to
subsections (i)-(iii) above, if the action or inaction in question is susceptible of a
cure, then no finding of Cause shall occur prior to written notice to the Executive setting forth
in reasonable detail the action or inaction at issue, and the Executive’s failure to cure such
condition following a cure period of no less than sixty (60) days.

     (d) Termination Without Cause. The Company, at the direction of the Board,
may terminate the Executive’s employment without Cause at any time upon no less than ninety (90)
days prior written notice, or ninety (90) days’ pay in lieu of notice.

     (e) Resignation for Good Reason. The Executive may resign from his
employment with the Company for Good Reason by providing written notice to the Chief Executive
Officer that an event
constituting Good Reason has occurred and the Executive desires to resign from his employment
with the

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Company as a result. Such notice must be provided to the Chief Executive Officer by the
Executive within sixty (60) days following the initial occurrence of the event constituting Good
Reason. After receipt of such written notice, the Chief Executive Officer shall have a period of
sixty (60) days to cure such event; provided, however, the Chief Executive Officer, may, at its
sole option, determine not to cure such event and accept the Executive’s resignation effective
thirty (30) days following the Chief Executive Officer’s receipt of the Executive’s notice that an
event constituting Good Reason has occurred. If the Chief Executive Officer does not cure the event
constituting Good Reason within the requisite sixty (60) day period, the Executive’s employment
with the Company shall terminate on account of Good Reason thirty (30) days following the
expiration of the Chief Executive Officer’s cure period, unless the Chief Executive Officer
determines to terminate the Executive’s employment prior to such date. As used herein, “Good
Reason” means that, without the Executive’s consent, any of the following has occurred:

          (i) a material diminution in the Executive’s authority, duties or
responsibilities;

          (ii) a material diminution in the Executive’s Base Salary; or

          (iii) any action or inaction by the Company that constitutes a material breach by
the Company of its obligations under this Agreement.

For the avoidance of doubt, in no event shall the expiration of this Agreement be construed as
giving rise to Good Reason.

     (f) Resignation Without Good Reason. The Executive may resign from his
employment with the Company without Good Reason (as that term is defined in Section 8(c))
at any time upon no less than ninety (90) days prior written notice to the Chief Executive Officer.
Upon such notice of resignation, the Company may, at its sole option, accept the Executive’s
resignation effective as of a date prior to the resignation date specified in the notice, and in
such event, the earlier date will be the effective date of termination of the Executive’s
employment for all purposes hereunder.

     9. Compensation Upon Termination.

     (a) Disability. Upon termination of employment pursuant to
Section 8(a), the Executive will receive any Base Salary accrued and unpaid as of such date
as well as any accrued but unused PTO and appropriate expense reimbursements. Such amounts will be
paid as soon as practicable after the termination of employment. If the Executive becomes disabled
before the end of the fiscal year, the Executive will also receive Incentive Compensation for such
fiscal year on a pro rata basis (1/12th of the aggregate Incentive Compensation payable to the
Executive for such fiscal year for each month in which he was employed on the last day of that
month), but only to the extent that all prerequisites for receiving the Incentive Compensation have
otherwise been satisfied. Such pro rata Incentive Compensation will be paid at the time that the
Incentive Compensation is payable to other executives. The Company shall have no further
obligations under this Agreement to the Executive.

     (b) Death. In the event of the Executive’s death, the Executive’s estate
will receive his Base Salary accrued and unpaid as of the date of his death as well as any accrued
but unused PTO and appropriate expense reimbursements. Such amounts will be paid as soon as
practicable after the termination of employment. If the Executive dies before the end of the fiscal
year, the Executive’s estate will receive Incentive Compensation for such fiscal year on a pro rata
basis (1/12th of the aggregate Incentive Compensation payable to the Executive for such fiscal year
for each month in which he was employed on the last day of that month), but only to the extent that
all prerequisites for receiving the Incentive Compensation have otherwise been satisfied. Such pro
rata bonus will be paid at the time that

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the Incentive Compensation is payable to other executives. The Company shall have no further
obligations under this Agreement to the Executive.

     (c) Termination Without Cause or Resignation With Good Reason Other Than in
Connection With a Change in Control. If, other than in connection with a Change in Control as
defined in Section 9(d), the Company terminates the Executive’s employment without Cause
pursuant to Section 8(d) or if the Executive resigns for Good Reason pursuant to
Section 8(e), the Company will pay the Executive his Base Salary accrued and unpaid as of
the date of termination of employment as well as any accrued but unused PTO and appropriate expense
reimbursements. Such amounts will be paid as soon as practicable after the termination of
employment. In addition, subject to the Executive’s execution and nonrevocation of the general
release of claims described in Section 9(f) below and compliance with the requirements of
Section 20 below, as well as Executive’s compliance with the restrictive covenants set
forth in Sections 10 through 14 below, the Company will also pay and/or provide to the Executive
the following:

          (i) severance in an amount equal to twelve (12) months of the Executive’s monthly
Base Salary (the “Severance Amount”), minus applicable deductions and withholdings, which shall be
paid to the Executive in accordance with the Company’s normal payroll practices in equal
installments over the twelve (12) month period following Executive’s last day of employment and
which shall commence as soon as administratively practicable following the expiration of the
revocation period for the general release, but not later than sixty (60) days following the date of
Executive’s last day of employment with the Company;

          (ii) in accordance with Section 4(b), the Executive will receive any
accrued and unpaid Incentive Compensation, minus applicable deductions and withholdings, for which
he is eligible, with such amount to be paid in a lump sum as soon as practicable after the
termination of employment;

          (iii) notwithstanding any eligibility requirement that the Executive must be
employed by the Company as of the date on which the Incentive Compensation is paid, if the
Executive’s employment is terminated before such date in accordance with Section 8(d) or
8(e), he will be eligible to receive Incentive Compensation on a pro rata basis (1/12th of the
aggregate Incentive Compensation payable to the Executive for such fiscal year for each month in
which he was employed on the last day of that month (but not in duplication of the amount paid
pursuant to clause (ii) of this Section 9(c))), minus applicable deductions and
withholdings, but only to the extent that all prerequisites for receiving the Incentive
Compensation have otherwise been satisfied, with such pro rata Incentive Compensation being paid in
a lump sum at the same time that the Incentive Compensation is payable to other executives;

          (iv) notwithstanding any provision to the contrary in any applicable grant
agreement or the Company’s 2006 Equity Compensation Plan (or a successor plan), all shares subject
to Company equity grants (including without limitation stock options, stock units and stock awards)
that vest solely on the Executive’s continued employment with the Company for a specified period of
time held by the Executive at the time of his termination date that would have vested within the
twelve month (12) month period following the Executive’s termination date if the vesting schedule
for such grants were based on a monthly vesting schedule, as opposed to the vesting schedule set
forth in his grant agreement, shall become vested on the Executive’s termination date; and

          (v) the Company will provide continued health benefits to the Executive at the
same premium rates charged to other then current employees of the Company for the twelve (12) month
period following his termination of employment, unless the Executive is otherwise covered by health
insurance provided by a future employer.

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     For the avoidance of doubt, acceleration, if any, of equity grants that vest in whole or in
part based on the satisfaction of performance-based or market-based conditions will be governed by
the terms of the applicable award agreement and/or plan.

     The Company has no further obligation under this Agreement to the Executive upon his
termination without Cause, resignation for Good Reason, or the Company’s decision not to extend or
renew the contract upon its scheduled expiration date. The obligations of the Company set forth in
this Section 9(c) or Section 9(d) will be suspended and no longer enforceable if
the Executive materially breaches the terms and conditions of Sections 9(f), 7, 10, 11, 12, 13,
14 or 15, which material breach is not cured (if capable of cure) within ten (10) days written
notice of such breach. For the avoidance of doubt, in no event shall the expiration of this
Agreement be construed as a termination without Cause or resignation for Good Reason.

     (d) Termination Without Cause or Resignation With Good Reason in Connection
With a Change in Control. If, on or within twelve (12) months after a Change in Control as
defined below, the Company terminates the Executive’s employment without Cause pursuant to
Section 8(d) or if the Executive resigns for Good Reason pursuant to Section 8(e),
the Executive is entitled to his Base Salary accrued and unpaid as of the date of termination of
employment as well as any accrued but unused PTO and appropriate expense reimbursements. Such
amounts will be paid as soon as practicable after the termination of employment. In addition,
subject to the Executive’s execution and nonrevocation of the general release of claims described
in Section 9(f) below and compliance with the requirements of Section 20 below, the
Executive shall be entitled to the following:

          (i) severance in an amount equal to twelve (12) months of the Executive’s monthly
Base Salary (the “Change in Control Severance Amount”), minus applicable deductions and
withholdings, which shall be paid to the Executive in a lump sum as soon as administratively
practicable following the expiration of the revocation period for the general release, but not
later than sixty (60) days following the date of Executive’s last day of employment with the
Company;

          (ii) in accordance with Section 4(b), the Executive will receive any
accrued and unpaid Incentive Compensation, minus applicable deductions and withholdings, for which
he is eligible, with such amount to be paid in a lump sum as soon as practicable after the
termination of employment;

          (iii) notwithstanding any eligibility requirement that the Executive must be
employed by the Company as of the date on which the Incentive Compensation is paid, if the
Executive’s employment is terminated before such date in accordance with Section 8(d) or
8(e), he will be eligible to receive Incentive Compensation on a pro rata basis (1/12th of the
aggregate Incentive Compensation payable to the Executive for the fiscal year for each month in
which he was employed on the last day of that month), minus applicable deductions and withholdings,
based on the target Incentive Compensation for the applicable period, with such pro rata bonus
being paid in a lump sum as soon as administratively practicable following the expiration of the
revocation period for the general release, but not later than sixty (60) days following the date of
the Executive’s last day of employment with the Company;

          (iv) an amount equal to one times the Executive’s aggregate target Incentive
Compensation for the fiscal year of the Company in which the termination of employment occurs,
determined without regard to any reduction thereof that constitutes Good Reason, with such amount
to be paid in a lump sum as soon as administratively practicable following the expiration of the
revocation period for the general release, but not later than sixty (60) days following the date of
the Executive’s last day of employment with the Company;

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          (v) notwithstanding any provision to the contrary in any applicable grant
agreement or the Company’s 2006 Equity Compensation Plan (or a successor plan), all shares subject
to Company equity grants (including without limitation stock options, stock units and stock awards)
that vest solely on the Executive’s continued employment with the Company for a specified period of
time held by the Executive at the time of his termination date shall immediately vest in full
and/or become immediately exercisable or payable on the Executive’s termination date; and

          (vi) the Company will provide continued health benefits to the Executive at the
same premium rates charged to other then current employees of the Company for the twelve (12) month
period following his termination of employment, unless the Executive is otherwise covered by health
insurance provided by a future employer.

     For the avoidance of doubt, acceleration, if any, of equity grants that vest in whole or in
part based on the satisfaction of performance-based or market-based conditions will be governed by
the terms of the applicable award agreement and/or plan. In the event that the Company modifies
the performance periods or frequency at which discretionary bonuses are to be earned or paid, the
references to Incentive Compensation and Quarterly Bonus in this Section 9(d) shall be
construed accordingly to reflect such modified bonus periods or frequency.

     The Company has no further obligation under this Agreement to the Executive upon his
termination without Cause or resignation for Good Reason in connection with a Change in Control.
The obligations of the Company set forth in this Section 9(d) will be suspended and no
longer enforceable if the Executive materially breaches the terms and conditions of Sections
9(f), 7, 10, 11, 12, 13, 14 or 15, which material breach is not cured (if capable of cure)
within ten (10) days written notice of such breach. If benefits are due under this
Section 9(d), no benefits are due under Section 9(c).

     For purposes of this Agreement, “Change in Control” means a (I) Change in Ownership of the
Company, (II) Change in Effective Control of the Company, or (III) Change in the Ownership of
Assets of the Company, as described herein and construed in accordance with section 409A of the
Internal Revenue Code of 1986, as amended, and the regulations and Treasury guidance issued
thereunder (the “Code”); except that no Change in Control shall be deemed to occur as a result of a
change of ownership resulting from the death of a stockholder or a transaction in which the Company
becomes a subsidiary of another corporation and in which the stockholders of the Company,
immediately prior to the transaction, will beneficially own, immediately after the transaction,
shares entitling such stockholders to more than 50% of all votes to which all stockholders of the
parent corporation would be entitled in the election of directors (without consideration of the
rights of any class of stock to elect directors by a separate class vote).

     (I) A “Change in Ownership of the Company” shall occur on the date that any one Person
acquires, or Persons Acting as a Group acquire, ownership of the capital stock of the Company that,
together with the stock held by such Person or Group, constitutes more than 50% of the total fair
market value or total voting power of the capital stock of the Company. However, if any one Person
is, or Persons Acting as a Group are, considered to own more than 50% of the total fair market
value or total voting power of the capital stock of the Company, the acquisition of additional
stock by the same Person or Persons Acting as a Group is not considered to cause a Change in
Ownership of the Company or to cause a Change in Effective Control of the Company (as described
below). An increase in the percentage of capital stock owned by any one Person, or Persons Acting
as a Group, as a result of a transaction in which the Company acquires its stock in exchange for
property will be treated as an acquisition of stock.

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     (II) A “Change in Effective Control of the Company” shall occur on the date a majority of
members of the Board is replaced during any 12-month period by directors whose appointment or
election is not endorsed by a majority of the members of the Board before the date of the
appointment or election.

     (III) A “Change in the Ownership of Assets of the Company” shall occur on the date that any
one Person acquires, or Persons Acting as a Group acquire (or has or have acquired during the
12-month period ending on the date of the most recent acquisition by such Person or Persons),
assets from the Company that have a total gross fair market value equal to or more than 75% of the
total gross fair market value of all of the assets of the Company immediately before such
acquisition or acquisitions. For this purpose, “gross fair market value” means the value of the
assets of the Company, or the value of the assets being disposed of, determined without regard to
any liabilities associated with such assets.

     The following rules of construction apply in interpreting the definition of Change in Control:

     (A) A “Person” means any individual, entity or group within the meaning of section 13(d)(3) or
14(d)(2) of the Securities Exchange Act of 1934, as amended, other than employee benefit plans
sponsored or maintained by the Company and by entities controlled by the Company or an underwriter
of the capital stock of the Company in a registered public offering.

     (B) Persons will be considered to be “Persons Acting as a Group” (or “Group”) if they are
owners of a corporation that enters into a merger, consolidation, purchase or acquisition of stock,
or similar business transaction with the corporation. If a Person owns stock in both corporations
that enter into a merger, consolidation, purchase or acquisition of stock, or similar transaction,
such shareholder is considered to be acting as a Group with other shareholders only with respect to
the ownership in that corporation before the transaction giving rise to the change and not with
respect to the ownership interest in the other corporation. Persons will not be considered to be
acting as a Group solely because they purchase assets of the same corporation at the same time or
purchase or own stock of the same corporation at the same time, or as a result of the same public
offering.

     (C) For purposes of the definition of Change in Control, “fair market value” shall be
determined by the Board.

     (D) A Change in Control shall not include a transfer to a related person as described in Code
section 409A or a public offering of capital stock of the Company.

     (E) For purposes of the definition of Change in Control, Code section 318(a) applies to
determine stock ownership. Stock underlying a vested option is considered owned by the individual
who holds the vested option (and the stock underlying an unvested option is not considered owned by
the individual who holds the unvested option). For purposes of the preceding sentence, however, if
a vested option is exercisable for stock that is not substantially vested (as defined by Treas.
Reg. § 1.83-3(b) and (j)), the stock underlying the option is not treated as owned by the
individual who holds the option.

     (e) Termination With Cause, Resignation Without Good Reason, or Expiration of
the Agreement. If, whether or not in connection with a Change in Control, the Company
terminates the Executive’s employment with Cause pursuant to Section 8(c), if the Executive
resigns without Good Reason pursuant to Section 8(f), or if the Executive is entitled to
the severance benefits pursuant to Section 9(c) or Section 9(d) and either does not
execute or revokes the general release of claims required pursuant to Section 9(f), or is
in breach of any of the covenants set forth in Sections 10, 11, 12, 13 or 14 below, the Company
will pay the Executive his Base Salary accrued and unpaid as of the date of termination of
employment as well as any accrued but unused PTO and appropriate expense reimbursements. Such
amounts will be paid as soon as practicable after the termination of employment.

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The Company shall have no further obligations under this Agreement to the Executive. If this
Agreement expires without any extension or renewal of its terms, the Executive will be an at-will
employee of the Company thereafter unless the Company elects to terminate the Executive’s
employment coincident with such expiration and the Company shall have no further obligations under
this Agreement to the Executive. If the Company elects to terminate the Executive’s employment
coincident with the expiration of this Agreement, the Company will pay the Executive his Base
Salary accrued and unpaid as of the date of termination of employment as well as any accrued but
unused PTO and appropriate expense reimbursements. For the avoidance of doubt, in no event shall
the expiration of this Agreement, or the termination of Executive’s employment coincident with such
expiration, be construed as a termination without Cause or resignation for Good Reason.

     (f) Release of Claims. As a condition for the payments of the Severance
Amount or the Change in Control Severance and Incentive Compensation provided in
Section 9(c) or Section 9(d), the Executive must execute a general release of all
claims (including claims under local, state and federal laws, but excluding claims for payment due
under Section 9(c) or Section 9(d) that the Executive has or may have against the
Company or any related individuals or entities (the “Release”). The Release shall be in a form
reasonably acceptable to the Company, and shall include confidentiality, cooperation, and
non-disparagement provisions, as well as other terms requested by the Company that are typical of
an executive severance agreement. The Severance Amount, Change in Control Severance Amount,
Incentive Compensation, acceleration of vesting and continued health benefits provided for in
Section 9(c) or Section 9(d) are conditioned upon and will not be paid (or be
provided) until the execution of the Release and the expiration of any revocation period;
provided that notwithstanding any provision of this Agreement to the contrary, in no event
shall the timing of the Executive’s execution of the Release, directly or indirectly, result in the
Executive designating the calendar year of payment, and if a payment that is subject to execution
of the Release could be made in more than one taxable year, payment shall be made in the later
taxable year. The Company shall provide the Release to the Executive by no later than ten days
after the Executive terminates employment with the Company, and the Executive shall execute the
Release during the statutory time period specified by applicable law. If the Release is not
executed during the statutory time period specified by applicable law, the Company’s obligation to
pay any Severance Amount, Change in Control Severance Amount, or Incentive Compensation and to
provide any acceleration of vesting and continued health benefits provided for in
Section 9(c) or Section 9(d) pursuant to this Agreement shall terminate.

     (g) Section 280G Cutback. The Executive shall bear all expense of, and be
solely responsible for, all federal, state, local or foreign taxes due with respect to any payment
received under this Agreement, including, without limitation, any excise tax imposed by Code
section 4999. Notwithstanding anything to the contrary in this Agreement, in the event that any
payment or benefit received or to be received by the Executive pursuant to the terms of this
Agreement or in connection with the Executive’s termination of employment or contingent upon a
Change in Control pursuant to any plan or arrangement or other agreement with the Company or any
affiliate (collectively, the “Payments”) would be subject to the excise tax imposed by Code section
4999, as determined by the Company, then the Payments shall be reduced to the extent necessary to
prevent any portion of the Payments from becoming nondeductible by the Company under Code section
280G or subject to the excise tax imposed under Code section 4999, but only if, by reason of that
reduction, the net after-tax benefit received by the Executive exceeds the net after-tax benefit
the Executive would receive if no reduction was made. For this purpose, “net after-tax benefit”
means (i) the total of all Payments that would constitute “excess parachute payments” within the
meaning of Code section 280G, less (ii) the amount of all federal, state, and local income taxes
payable with respect to the Payments calculated at the maximum marginal income tax rate for each
year in which the Payments shall be paid to the Executive (based on the rate in effect for that
year as set forth in the Code as in effect at the time of the first payment of the Payments), less
(iii) the amount of excise taxes imposed on the Payments described in clause (i) above by Code
section 4999. If,
pursuant to this

9

 

Section 9(g), Payments are to be reduced, the Company shall determine
which Payments shall be reduced in a manner so as to avoid the imposition of additional taxes under
Code section 409A.

     10. Confidentiality; Return of Company Property.

     (a) The Executive acknowledges that, by reason of Executive’s employment by the
Company, Executive will have access to confidential information of the Company, including, without
limitation, information and knowledge pertaining to products, inventions, discoveries,
improvements, innovations, designs, ideas, trade secrets, proprietary information, business
strategies, packaging, advertising, marketing, distribution and sales methods, sales and profit
figures, employees, customers and clients, and relationships between the Company and its business
partners, including dealers, traders, distributors, sales representatives, wholesalers, customers,
clients, suppliers and others who have business dealings with them (“Confidential Information”).
The Executive acknowledges that such Confidential Information is a valuable and unique asset of the
Company and covenants that, both during and after the Term, Executive will not disclose any
Confidential Information to any person or entity, except as Executive’s duties as an employee of
the Company may require, without the prior written authorization of the Board. The obligation of
confidentiality imposed by this Section 10 shall not apply to Confidential Information that
otherwise becomes generally known to the public through no act of the Executive in breach of this
Agreement or any other party in violation of an existing confidentiality agreement with the
Company, or which is required to be disclosed by court order or applicable law.

     (b) All records, designs, patents, business plans, financial statements, manuals,
memoranda, lists, research and development plans and products, and other property delivered to or
compiled by the Executive by or on behalf of the Company or its vendors or customers that pertain
to the business of the Company shall be and remain the property of the Company, and be subject at
all times to its discretion and control. Likewise, all correspondence, reports, records, charts,
advertising materials and other similar data pertaining to the business, activities or future plans
of the Company (and all copies thereof) that are collected by the Executive shall be delivered
promptly to the Company without request by it upon termination of the Executive’s employment.

     11. Non-Competition. While the Executive is employed at the Company and
for a period of twelve (12) months after the termination of his employment with the Company for any
reason (the “Restricted Period”), the Executive will not, directly or indirectly, own, maintain,
finance, operate, engage in, assist, be employed by, contract with, license, or have any interest
in, or association with a business or enterprise engaged in or planning to be engaged in, the
Internet retail trading of foreign exchange, or any business engaged in by the Company, or approved
for the Company or its affiliates to be engaged in by the Board of Directors of the Company, during
his employment with the Company.

     12. Solicitation of Clients. During the Restricted Period, the Executive,
directly or indirectly, including through any other person or entity, shall not seek business from
any Client on behalf of any enterprise or business other than the Company, refer business generated
from any Client to any enterprise or business other than the Company, or receive commissions based
on sales or otherwise relating to the business from any Client, enterprise or business other than
the Company. For purposes of this Agreement, the term “Client” means any person, firm, corporation,
limited liability company, partnership, association or other entity (i) to which the Company sold
or provided services during the 12-month period prior to the time at which any determination is
required to be made as to whether any such person, firm, corporation, partnership, association or
other entity is a Client, or (ii) who or which has been approached by an employee of the Company
for the purpose of soliciting business for the Company and which business was reasonably expected
to generate revenue in excess of $100,000 per annum.

10

 

     13. Solicitation of Employees. During the Restricted Period, the
Executive, directly or indirectly, shall not contact or solicit any employee of the Company for the
purpose of hiring them or causing them to terminate their employment relationship with the Company.

     14. Inventions, Ideas, Processes, and Designs. All inventions, ideas,
processes, programs, software, and designs (including all improvements) conceived or made by the
Executive during his employment with the Company (whether or not actually conceived during regular
business hours) and related to the business of the Company, or the business approved by the Board
of Directors to be engaged in by the Company, shall be disclosed in writing promptly to the Company
and shall be the sole and exclusive property of the Company. An invention, idea, process, program,
software, or design (including an improvement) shall be deemed related to the actual or approved
business of the Company if (x) it was made with the Company’s equipment, supplies, facilities, or
Confidential Information, (y) results from work performed by the Executive for the Company, or (z)
pertains to the current business or demonstrably anticipated research or development work of the
Company. The Executive shall cooperate with the Company and its attorneys in the preparation of
patent and copyright applications for such developments and, upon request, shall promptly assign
all such inventions, ideas, processes, and designs to the Company. The decision to file for patent
or copyright protection or to maintain such development as a trade secret shall be in the sole
discretion of the Company, and the Executive shall be bound by such decision.

     15. Specific Performance/Remedies. The Executive acknowledges that the
services to be rendered by the Executive are of a special, unique and extraordinary character and,
in connection with such services, the Executive will have access to Confidential Information vital
to the Company’s business. Executive further agrees that the covenants contained in Sections 11,
12, 13 and 14 are reasonable and necessary to protect the legitimate business interests of the
Company. By reason of this, the Executive consents and agrees that if the Executive violates any
of the provisions of Section 11, 12, 13, and 14 hereof, the Company would sustain
irreparable injury and that monetary damages would not provide adequate remedy to the Company. The
Executive hereby agrees that the Company shall be entitled to have Section 11, 12, 13, or
14 hereof specifically enforced (including, without limitation, by injunctions and restraining
orders) by any court in the State of New Jersey having equity jurisdiction and agrees to be subject
to the jurisdiction of said court. As a further and non-exclusive remedy, Executive understands
that a breach of the covenants contained in Sections 11, 12, 13, or 14 above that causes material
harm to the Company as reasonably determined by the Board (which determination shall be binding and
final) shall eliminate Executive’s entitlement to any further payment of the Severance Amount,
Change in Control Severance Amount, Incentive Compensation, acceleration of vesting and continued
health benefits provided for in Section 9(c) or Section 9(d), and Executive shall be required to
return any such amounts in the event of such a breach. Nothing contained herein shall be construed
as prohibiting the Company from pursuing any other remedies available to it for such breach or
threatened breach, including the recovery of damages from the Executive.

     16. Complete Agreement. This Agreement embodies the entire agreement of
the parties with respect to the Executive’s employment, compensation, benefits and related items
and supersedes any other prior oral or written agreements, arrangements or understandings between
the Executive and the Company, other than the award agreements reflecting outstanding equity awards
held by the Executive as of the date of this Agreement which shall continue to control such equity
awards except as expressly modified by Sections 9(c) and 9(d) of this Agreement. This
Agreement may not be changed or terminated orally but only by an agreement in writing signed by the
parties hereto.

     17. Waiver. The waiver by either party of a breach of any provision of
this Agreement by the other party shall not operate or be construed as a waiver of any subsequent
breach by such party.

11

 

     18. Governing Law; Assignability.

     (a) This Agreement shall be governed by, and construed in accordance with, the
laws of the State of New Jersey without reference to the choice of law provisions thereof.

     (b) The Executive may not, without the Company’s prior written consent, delegate,
assign, transfer, convey, pledge, encumber or otherwise dispose of this Agreement or any interest
herein. Any such attempt shall be null and void and without effect. The Company and the Executive
agree that this Agreement and all of the Company’s rights and obligations hereunder may be assigned
or transferred by the Company and shall be assumed by and be binding upon any successor to the
Company.

     19. Severability. If any provision of this Agreement or any part thereof,
including, without limitation, Sections 11, 12, 13, or 14, as applied to either party or to
any circumstances shall be adjudged by a court of competent jurisdiction to be void or
unenforceable, the same shall in no way affect any other provision of this Agreement or remaining
parts thereof, which shall be given full effect without regard to the invalid or unenforceable part
thereof, or the validity or enforceability of this Agreement. In the event an arbitrator or court
of competent jurisdiction deems the restrictive covenants unreasonably lengthy in time or overly
broad in scope, it is the intention and agreement of the parties that those provisions which are
not fully enforceable be deemed as having been modified to the extent necessary to render them
reasonable and enforceable and that they be enforced to such extent.

     20. Notices. All notices to the Company or the Executive, permitted or
required hereunder, shall be in writing and shall be delivered personally, by telecopier or by
courier service providing for next-day delivery or sent by registered or certified mail, return
receipt requested, to the following addresses:

     If to the Company:

GAIN Capital Holdings, Inc.

Bedminster One

135 Route 202/206

Bedminster, New Jersey 07921

Attention: Chief Executive Officer

     If to the Executive, to the address set forth on the first page hereof.

     Either party may change the address to which notices shall be sent by sending written notice
of such change of address to the other party. Any such notice shall be deemed given, if delivered
personally, upon receipt; if telecopied, when telecopied; if sent by courier service providing for
next-day delivery, the next business day following deposit with such courier service; and if sent
by certified or registered mail, three days after deposit (postage prepaid) with the U.S. mail
service.

     21. Section 409A.

     (a) This Agreement shall be interpreted to avoid the imposition of any additional
taxes under Code section 409A. If any payment or benefit cannot be provided or made at the time
specified herein without incurring additional taxes under Code section 409A, then such benefit or
payment shall be provided in full at the earliest time thereafter when such sanctions will not be
imposed. The preceding provisions, however, shall not be construed as a guarantee by the Company of
any particular tax effect to Executive under this Agreement. For purposes of Code section 409A,
each payment under this Agreement shall be treated as a separate payment and the right to a series
of installment payments under this

12

 

Agreement shall be treated as a right to a series of separate payments. In no event may the
Executive, directly or indirectly, designate the calendar year of payment.

     (b) To the maximum extent permitted under Code section 409A, the cash severance
payments payable under this Agreement are intended to comply with the ‘short-term deferral
exception’ under Treas. Reg. §1.409A-1(b)(4), and any remaining amount is intended to comply with
the ‘separation pay exception’ under Treas. Reg. §1.409A-1(b)(9)(iii) or any successor provision;
provided, however, any amount payable to the Executive during the six-month period following the
Executive’s termination date that does not qualify within either of the foregoing exceptions and is
deemed as deferred compensation subject to the requirements of Code section 409A, then such amount
shall hereinafter be referred to as the ‘Excess Amount.’ If the Executive is a “key employee” of a
publicly traded corporation under section 409A at the time of his separation from service and if
payment of the Excess Amount under this Agreement is required to be delayed for a period of six (6)
months after separation from service pursuant to Code section 409A, then notwithstanding anything
in this Agreement to the contrary, payment of such amount shall be delayed as required by Code
section 409A, and the accumulated postponed amount shall be paid in a lump sum payment within ten
(10) days after the end of the six (6) month period. If the Executive dies during the postponement
period prior to the payment of the postponed amount, the amounts withheld on account of section
409A shall be paid to the personal representative of the Executive’s estate within sixty (60) days
after the date of the Executive’s death. A “key employee” shall mean an employee who, at any time
during the 12-month period ending on the identification date, is a “specified employee” under Code
section 409A, as determined by the Board, in its sole discretion. The determination of key
employees, including the number and identity of persons considered key employees and the
identification date, shall be made by the Board in accordance with the provisions of Code
sections 416(i) and 409A.

     (c) To the extent the Executive is, at the time of his termination of employment
under this Agreement, participating in one or more deferred compensation arrangements subject to
Code section 409A, the payments and benefits provided under those arrangements shall continue to be
governed by, and to become due and payable in accordance with, the specific terms and conditions of
those arrangements, and nothing in this Agreement shall be deemed to modify or alter those terms
and conditions.

     (d) “Termination of employment,” “resignation,” or words of similar import, as
used in this Agreement means, for purposes of any payments under this Agreement that are payments
of deferred compensation subject to Code section 409A, the Executive’s “separation from service” as
defined in Code section 409A.

     (e) Nothing herein shall be construed as having modified the time and form of
payment of any amounts or payments of “deferred compensation” (as defined under Treas. Reg. §
1.409A-1(b)(1), after giving effect to the exemptions in Treas. Reg. §§ 1.409A-1(b)(3) through
(b)(12)) that were otherwise payable pursuant to the terms of any agreement between Company and the
Executive in effect on or after January 1, 2005 and prior to the date of this Agreement.

     (f) All reimbursements provided under this Agreement shall be made or provided in
accordance with the requirements of Code section 409A, including, where applicable, the requirement
that (i) any reimbursement is for expenses incurred during the Executive’s lifetime (or during a
shorter period of time specified in this Agreement), (ii) the amount of expenses eligible for
reimbursement during a calendar year may not affect the expenses eligible for reimbursement in any
other calendar year, (iii) the reimbursement of an eligible expense will be made on or before the
last day of the calendar year following the year in which the expense is incurred, and (iv) the
right to reimbursement is not subject to liquidation or exchange for another benefit.

13

 

     22. Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, and all of which taken together shall
constitute one and the same instrument.

     23. Separation. All covenants that, by their terms, naturally would
survive the termination or expiration of this Agreement, including but not limited to
Sections 11, 12, 13, 14 and 15 hereof, shall survive the termination or expiration of this
Agreement.

14

 

IN WITNESS WHEREOF, the parties hereto have duly executed this Employment Agreement as of the date
first above written.

	 	 	 	 	 

	GAIN CAPITAL HOLDINGS, INC.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	Name:

	 	 

Glenn Stevens
	 	 
	Title:

	 	President and Chief Executive Officer	 	 
	 
	 	 	 	 
	 	 	 
	Alexander Bobinski	 	 

15exv10w60

Exhibit 10.60

GAIN CAPITAL HOLDINGS, INC.

2006 EQUITY COMPENSATION PLAN

(Amended and Restated, effective December 31, 2006)

     The purpose of the GAIN Capital Holdings, Inc. 2006 Equity Compensation Plan (the “Plan”) is
to provide (i) designated employees of GAIN Capital Holdings, Inc. (the “Company”) and its
subsidiaries, (ii) certain consultants and advisors who perform services for the Company or its
subsidiaries and (iii) non-employee members of the Board of Directors of the Company (the “Board”)
with the opportunity to receive grants of incentive stock options, nonqualified stock options,
stock awards, stock units, stock appreciation rights and other equity-based awards. The Company
believes that the Plan will encourage the participants to contribute materially to the growth of
the Company, thereby benefiting the Company’s stockholders, and will align the economic interests
of the participants with those of the stockholders.

1. Administration

          (a) Committee. The Plan shall be administered and interpreted by the Board or by a
committee consisting of members of the Board, which shall be appointed by the Board. After an
initial public offering of the Company’s stock as described in
Section 21(b) (a “Public
Offering”), the Plan shall be administered by a committee, which may consist of “outside
directors” as defined under section 162(m) of the Internal Revenue Code of 1986, as amended (the
“Code”), and related Treasury regulations and “non-employee directors” as defined under Rule l6b-3
under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). However, the Board
shall approve and administer all grants under the Plan to non-employee directors. The committee
may delegate authority to one or more subcommittees, as it deems appropriate. To the extent the
Board, committee or subcommittee administers the Plan, references in the Plan to the “Committee”
shall be deemed to refer to such Board, committee or subcommittee.

          (b)
Committee Authority. The Committee shall have the sole authority to (i) determine
the individuals to whom grants shall be made under the Plan, (ii) determine the type, size and
terms of the grants to be made to each such individual, (iii) determine the time when the grants
will be made and the duration of any applicable exercise or restriction period, including the
criteria for exercisability and the acceleration of exercisability, (iv) amend the terms of any
previously issued grant, and (v) deal with any other matters arising under the Plan.

          (c) Committee Determinations. The Committee shall have full power and authority to
administer and interpret the Plan, to make factual determinations and to adopt or amend such rules,
regulations, agreements and instruments for implementing the Plan and for the conduct of its
business as it deems necessary or advisable, in its sole discretion. The Committee’s
interpretations of the Plan and all determinations made by the Committee pursuant to the powers
vested in it hereunder shall be conclusive and binding on all persons having any interest in the
Plan or in any awards granted hereunder. All powers of the Committee shall be executed in its sole
discretion, in the best interest of

 

 

the Company, not as a fiduciary, and in keeping with the
objectives of the Plan and need not be uniform as to similarly situated individuals.

2. Grants

     Awards under the Plan may consist of grants of incentive stock options as described in
Section 5 (“Incentive Stock Options”), nonqualified stock options as described in Section 5
(“Nonqualified Stock Options”) (Incentive Stock Options and Nonqualified Stock Options are
collectively referred to as “Options”), stock awards as described in Section 6 (“Stock Awards”),
stock units as described in Section 7 (“Stock Units”), stock appreciation rights (“SARs”) as
described in Section 8, and other equity-based awards as described in Section 9 (“Other Equity
Awards”) (collectively referred to herein as “Grants”). All Grants shall be subject to the terms
and conditions set forth herein and to such other terms and conditions consistent with this Plan
as the Committee deems appropriate and as are specified in writing by the Committee to the
individual in a grant instrument or an amendment to the grant instrument (the “Grant Instrument”).
All Grants shall be made conditional upon the Grantee’s acknowledgement, in writing or by
acceptance of the Grant, that all decisions and determinations of the Committee shall be final and
binding on the Grantee, his beneficiaries and any other person having or claiming an interest
under such Grant. Grants under a particular Section of the Plan need not be uniform as among the
Grantees.

3. Shares Subject to the Plan

          (a) Shares Authorized. Subject to adjustment as described below, the aggregate number
of shares of common stock of the Company (“Company Stock”) that may be issued or transferred under
the Plan is 3,800,000 shares. After a Public Offering, the maximum aggregate number of shares of
Company Stock that shall be subject to Grants made under the Plan to any individual during any
calendar year shall be 500,000 shares, subject to adjustment as described below.

          (b) Determination of Authorized Shares. The shares may be authorized but unissued
shares of Company Stock or reacquired shares of Company Stock. If and to the extent Options
or SARs granted under the Plan terminate, expire, or are canceled,
forfeited, exchanged or surrendered without having been exercised or if any Stock
Awards, Stock Units or Other Equity Awards are forfeited, the shares subject to such Grants shall
again be available for purposes of the Plan. If shares of Company Stock are used to pay the
exercise price of an Option, only the net number of shares received by the grantee pursuant to such
exercise shall be considered to have been issued or transferred under the Plan with respect to such
Option, and the remaining number of shares subject to the Option shall again be available for
purposes of the Plan.

          (c) Adjustments. If there is any change in the number or kind of shares of Company
Stock outstanding by reason of a stock dividend, spinoff, stock split or reverse stock split, or
by reason of a combination, reorganization, recapitalization or reclassification affecting the
outstanding Company Stock as a class without the Company’s receipt of consideration, the maximum
number of shares of Company Stock

 

 

available for Grants, the maximum number of shares of Company
Stock that any individual participating in the Plan may be granted in any year, the number of
shares covered by outstanding Grants, the kind of shares issued under the Plan and outstanding
Grants, and the price per share of outstanding Grants shall be equitably adjusted by the
Committee, as the Committee deems appropriate, to reflect any increase or decrease in the number
of, or change in the
kind or value of, issued shares of Company Stock to preclude, to the extent practicable, the
enlargement or dilution of rights and benefits under Grants; provided, however, that any
fractional shares resulting from such adjustment shall be eliminated. In addition, the Committee
shall have discretion to make the foregoing equitable adjustments in any circumstances in which
an adjustment is not mandated by this subsection (b) or applicable law, including in the event of
a Change of Control. Any adjustments to outstanding Grants shall be consistent with section 409A
or 422 of the Code, to the extent applicable. Any adjustments
determined by the Committee shall
be final, binding and conclusive.

4. Eligibility for Participation

          (a) Eligible Persons. All employees of the Company and its subsidiaries, including
Employees who are officers or members of the Board (“Employees”), and members of the Board who
are not Employees (“Non-Employee Directors”) shall be eligible to participate in the Plan.
Consultants and advisors who perform services for the Company or any of its subsidiaries (“Key
Advisors”) shall be eligible to participate in the Plan if the Key Advisors render bona fide
services to the Company or its subsidiaries, the services are not in connection with the offer
and sale of securities in a capital-raising transaction and the Key Advisors do not directly or
indirectly promote or maintain a market for the Company’s securities.

          (b) Selection of Grantees. The Committee shall select the Employees, Non-Employee
Directors and Key Advisors to receive Grants and shall determine the number of shares of Company
Stock subject to a particular Grant in such manner as the Committee determines. Employees, Key
Advisors and Non-Employee Directors who receive Grants under this Plan shall hereinafter be
referred to as “Grantees.”

5. Granting of Options

     The Committee may grant Options to an Employee, Non-Employee Director or Key Advisor, upon
such terms as the Committee deems appropriate. The following provisions are applicable to
Options:

          (a) Number of Shares. The Committee shall determine the number of shares of Company
Stock that will be subject to each Grant of Options to Employees, Non-Employee Directors and Key
Advisors.

          (b) Type of Option and Price.

               (i) The Committee may grant Incentive Stock Options that are intended to qualify as
“incentive stock options” within the meaning of section 422 of the Code or Nonqualified Stock
Options that are not intended so to qualify or any

 

 

combination of Incentive Stock Options and
Nonqualified Stock Options, all in accordance with the terms and conditions set forth herein.
Incentive Stock Options may be granted only to Employees. Nonqualified Stock Options may be
granted to Employees, Non-Employee Directors and Key Advisors.

               (ii) The purchase price (the “Exercise Price”) of Company Stock subject to an Option shall be determined by the Committee and may be equal to or
greater than the Fair Market Value (as defined below) of a share of Company Stock on the
date the Option is granted. However, an Incentive Stock Option may not be granted to an Employee
who, at the time of grant, owns stock possessing more than 10% of the total combined voting power
of all classes of stock of the Company or any subsidiary of the Company, unless the Exercise Price
per share is not less than 110% of the Fair Market Value of Company Stock on the date of grant.

               (iii) If the Company Stock is publicly traded, then the Fair Market Value per share shall be
determined as follows: (A) if the principal trading market for the Company Stock is a national
securities exchange or the Nasdaq National Market, the last reported sale price thereof on the
relevant date (or if there were no trades on that date, the latest preceding date upon which a
sale was reported), or (B) if the Company Stock is not principally traded on such exchange or
market, the mean between the last reported “bid” and “asked” prices of Company Stock on the
relevant date, as reported on Nasdaq or, if not so reported, as reported by the National Daily
Quotation Bureau, Inc. or as reported in a customary financial reporting service, as applicable
and as the Committee determines. If the Company Stock is not publicly traded or, if publicly
traded, is not subject to reported transactions or “bid” or “asked” quotations as set forth above,
the Fair Market Value per share shall be as determined by the Committee through any reasonable
valuation method authorized under the Code.

          (c)
Option Term. The Committee shall determine the term of each Option. The term of
any Option shall not exceed ten years from the date of grant. However, an Incentive Stock Option
that is granted to an Employee who, at the time of grant, owns stock possessing more than ten
percent of the total combined voting power of all classes of stock of the Company, or any parent
or subsidiary of the Company, may not have a term that exceeds five years from the date of grant.

          (d) Exercisability of Options.

                    (A) Options shall become exercisable in accordance with such terms and conditions,
consistent with the Plan, as may be determined by the Committee and specified in the Grant
Instrument. The Committee may accelerate the exercisability of any or all outstanding Options
at any time for any reason.

                    (B) The Committee may provide in a Grant Instrument that the Grantee may elect to exercise
part or all of an Option before it otherwise has become exercisable. Any shares so purchased shall
be restricted shares and shall be subject to a repurchase right in favor of the Company during a
specified restriction period, with the repurchase price equal to the lesser of (A) the Exercise
Price or (B) the

 

 

Fair Market Value of such shares at the time of repurchase, or such other restrictions as the
Committee deems appropriate.

          (e) Grants to Non-Exempt Employees. Notwithstanding the foregoing, Options granted
to persons who are non-exempt employees under the Fair Labor Standards Act of 1938, as amended,
may not be exercisable for at least six months after the date of grant (except that such Options
may become exercisable, as determined by the Committee, upon the Grantee’s death, Disability or
retirement, or upon a Change of Control or other circumstances permitted by applicable
regulations).

          (f) Termination of Employment, Disability or Death.

               (i) Except as provided below, an Option may only be exercised while the Grantee is
employed by, or providing service to, the Employer (as defined below) as an Employee, Key
Advisor or member of the Board.

               (ii) In the event that a Grantee ceases to be employed by, or provide service to, the Employer
for any reason other than Disability, death, or termination for Cause
(as defined below), any Option which is otherwise exercisable by the Grantee shall terminate unless exercised
within 90 days after the date on which the Grantee ceases to be employed by, or provide service to,
the Employer (or within such other period of time as may be specified by the Committee), but in any
event no later than the date of expiration of the Option term. Except as otherwise provided by the
Committee, any of the Grantee’s Options that are not otherwise exercisable as of the date on which
the Grantee ceases to be employed by, or provide service to, the Employer shall terminate as of
such date.

               (iii) In the event the Grantee ceases to be employed by, or provide service to, the Employer
on account of a termination for Cause by the Employer, any Option held by the Grantee shall
terminate as of the date the Grantee ceases to be employed by, or provide service to, the Employer.
In addition, notwithstanding any other provisions of this Section 5, if the Committee determines
that the Grantee has engaged in conduct that constitutes Cause at any time while the Grantee is
employed by, or providing service to, the Employer or after the Grantee’s termination of employment
or service, any Option held by the Grantee shall immediately terminate and the Grantee shall
automatically forfeit all shares underlying any exercised portion of an Option for which the
Company has not yet delivered the share certificates, upon refund by the Company of the Exercise
Price paid by the Grantee for such shares. Upon any exercise of an Option, the Company may withhold
delivery of share certificates pending resolution of an inquiry that could lead to a finding
resulting in a forfeiture.

               (iv) In the event the Grantee ceases to be employed by, or provide service to, the Employer on
account of the Grantee’s Disability, any Option which is otherwise exercisable by the Grantee shall
terminate unless exercised within one year after the date on which the Grantee ceases to be
employed by, or provide service to, the Employer (or within such other period of time as may be
specified by the Committee), but in any event no later than the date of expiration of the Option
term.

 

 

Except as otherwise provided by the Committee, any of the Grantee’s Options which are not
otherwise exercisable as of the date on which the Grantee ceases to be employed by, or provide
service to, the Employer shall terminate as of such date.

               (v) If the Grantee dies while employed by, or providing service to, the Employer or within 90
days after the date on which the Grantee ceases to be employed or provide service on account of a
termination specified in Section 5(f)(ii) above (or within such other period of time as may be
specified by the Committee), any Option that is otherwise exercisable by the Grantee shall
terminate unless exercised within one year after the date on which the Grantee ceases to be
employed by, or provide service to, the Employer (or within such other period of time as may be
specified by the Committee), but in any event no later than the date of expiration of the Option
term. Except as otherwise provided by the Committee, any of the Grantee’s Options that are not
otherwise exercisable as of the date on
which the Grantee ceases to be employed by, or provide service to, the Employer shall
terminate as of such date.

               (vi) For purposes of the Plan:

                    (A) The term “Employer” shall mean the Company and its subsidiaries, as determined by the
Committee.

                    (B) “Employed by, or provide service to, the Employer” shall mean employment or service as an
Employee, Key Advisor or member of the Board (so that, for purposes of exercising Options and
satisfying conditions with respect to other Grants, a Grantee shall not be considered to have
terminated employment or service until the Grantee ceases to be an Employee, Key Advisor and member
of the Board), unless the Committee determines otherwise.

                    (C) “Disability” shall mean a Grantee’s becoming disabled within the meaning of section
22(e)(3) of the Code, within the meaning of the Employer’s long-term disability plan applicable
to the Grantee, or as otherwise determined by the Committee.

                    (D) “Cause” shall mean, except to the extent otherwise specified by the Committee, a finding
by the Committee that the Grantee (i) has materially breached his or her employment or service
contract with the Employer, which breach has not been remedied by the Grantee after written notice
has been provided to the Grantee of such breach, (ii) has engaged in disloyalty to the Employer,
including, without limitation, fraud, embezzlement, theft, commission of a felony or proven
dishonesty, (iii) has disclosed trade secrets or confidential information of the Employer to
persons not entitled to receive such information, (iv) has breached any written non-competition or
non-solicitation agreement between the Grantee and the Employer or (v) has engaged in such other
behavior detrimental to the interests of the Employer as the Committee determines.

 

 

          (g) Exercise of Options. A Grantee may exercise an Option that has become
exercisable, in whole or in part, by delivering a notice of exercise to the Company. The Grantee
shall pay the Exercise Price for an Option as specified by the Committee (i) in cash, (ii) with
the approval of the Committee, by delivering shares of Company Stock owned by the Grantee
(including Company Stock acquired in connection with the exercise of an Option, subject to such
restrictions as the Committee deems appropriate) and having a Fair Market Value on the date of
exercise equal to the Exercise Price or by attestation (on a form prescribed by the Committee) to
ownership of shares of Company Stock having a Fair Market Value on the date of exercise equal to
the Exercise Price, (iii) after a Public Offering (as described in Section 21(b)) of the Company’s
stock, payment through a broker in accordance with procedures permitted by Regulation T of the
Federal Reserve Board, or (iv) by such other method as the Committee may approve. The Committee
may authorize loans by the Company to Grantees in connection with the exercise of an Option, upon
such terms and conditions as the Committee, in its sole discretion deems appropriate. Shares of
Company Stock used to exercise an Option shall have been held by the Grantee for the requisite
period of time to avoid adverse accounting consequences to the Company with respect to the Option.
The Grantee shall pay the Exercise Price and the amount of any withholding tax due
(pursuant to Section 10) at such time as may be specified by the Committee.

          (h) Limits on Incentive Stock Options. Each Incentive Stock Option shall provide
that, if the aggregate Fair Market Value of the stock on the date of the grant with respect to
which Incentive Stock Options are exercisable for the first time by a Grantee during any calendar
year, under the Plan or any other stock option plan of the Company or a parent or subsidiary,
exceeds $100,000, then the Option, as to the excess, shall be treated as a Nonqualified Stock
Option. An Incentive Stock Option shall not be granted to any person who is not an
Employee of the Company or a parent or subsidiary (within the meaning of section 424(f) of the
Code).

6. Stock Awards

     The Committee may issue or transfer shares of Company Stock to an Employee, Non-Employee
Director or Key Advisor under a Stock Award, upon such terms as the Committee deems appropriate.
The following provisions are applicable to Stock Awards:

          (a) General Requirements. Shares of Company Stock issued or transferred pursuant to
Stock Awards may be issued or transferred for cash consideration or for no cash consideration, and
subject to restrictions or no restrictions, as determined by the Committee. The Committee may, but
shall not be required to, establish conditions under which restrictions on Stock Awards shall lapse
over a period of time or according to such other criteria as the Committee deems appropriate,
including, without limitation, restrictions based upon the achievement of specific performance
goals. The period of time during which the Stock Awards will remain subject to restrictions will be
designated in the Grant Instrument as the “Restriction Period.”

 

 

          (b) Number of Shares. The Committee shall determine the number of shares of
Company Stock to be issued or transferred pursuant to a Stock Award and the restrictions
applicable to such shares.

          (c) Requirement of Employment or Service. Unless the Committee determines otherwise,
if the Grantee ceases to be employed by, or provide service to, the Employer during a period
designated in the Grant Instrument as the Restriction Period, or if other specified conditions are
not met, the Stock Award shall terminate as to all shares covered by the Grant as to which the
restrictions have not lapsed, and those shares of Company Stock must be immediately returned to
the Company. The Committee may, however, provide for complete or partial exceptions to this
requirement as it deems appropriate.

          (d) Restrictions on Transfer and Legend on Stock Certificate. During the Restriction
Period, a Grantee may not sell, assign, transfer, pledge or otherwise dispose of the shares of a
Stock Award except to a Successor Grantee under Section 11(a).
Each certificate for a share of a
Stock Award shall contain a legend giving appropriate notice of the restrictions in the Grant. The
Grantee shall be entitled to have the legend removed from the stock certificate covering the
shares subject to restrictions when all restrictions on such shares have lapsed. The Committee may
determine that the Company will not issue certificates for Stock Awards until all restrictions on
such shares have lapsed, or that the Company will retain possession of certificates for shares of
Stock Awards until all restrictions on such shares have lapsed.

          (e) Right to Vote and to Receive Dividends. Unless the Committee determines
otherwise, during the Restriction Period, the Grantee shall have the right to vote shares of
Stock Awards and to receive any dividends or other distributions paid on such shares, subject to
any restrictions deemed appropriate by the Committee, including, without limitation, the
achievement of specific performance goals.

          (f) Lapse of Restrictions. All restrictions imposed on Stock Awards shall
lapse upon the expiration of the applicable Restriction Period and the satisfaction of all
conditions imposed by the Committee. The Committee may determine, as to any or all Stock Awards,
that the restrictions shall lapse without regard to any Restriction Period.

7. Stock Units

     The Committee may grant Stock Units representing one or more shares of Company Stock to an
Employee, Non-Employee Director or Key Advisor, upon such terms and conditions as the Committee
deems appropriate. The following provisions are applicable to Stock Units:

          (a) Crediting of Units. Each Stock Unit shall represent the right of the Grantee to
receive an amount based on the value of a share of Company Stock, if specified conditions are met.
All Stock Units shall be credited to bookkeeping accounts established on the Company’s records for
purposes of the Plan.

 

 

          (b) Terms of Stock Units. The Committee may grant Stock Units that are payable
if specified performance goals or other conditions are met, or under other circumstances. Stock
Units may be paid at the end of a specified performance period or other period, or payment may be
deferred to a date authorized by the Committee. The Committee shall determine the number of Stock
Units to be granted and the requirements applicable to such Stock Units.

          (c) Requirement of Employment or Service. Unless the Committee determines otherwise,
if the Grantee ceases to be employed by, or provide service to, the Employer during a specified
period, or if other conditions established by the Committee are not met, the Grantee’s Stock
Units shall be forfeited. The Committee may, however, provide for complete or partial exceptions
to this requirement as it deems appropriate.

          (d) Payment With Respect to Stock Units. Payments with respect to Stock Units may be
made in cash, in Company Stock, or in a combination of the two, as determined by the Committee.

8. Stock Appreciation Rights

     The Committee may grant SARs to an Employee, Non-Employee Director or Key Advisor separately
or in tandem with any Option. The following provisions are applicable to SARs:

          (a) Base Amount. The Committee shall establish the base amount of the SAR at the time
the SAR is granted. The base amount of each SAR shall not be less than the Fair Market Value of a
share of Company Stock on the date of Grant of the SAR.

          (b) Tandem SARs. In the case of tandem SARs, the number of SARs granted to
a Grantee that shall be exercisable during a specified period shall not exceed the number of shares
of Company Stock that the Grantee may purchase upon the exercise of the related Option during such
period. Upon the exercise of an Option, the SARs relating to the Company Stock covered by such
Option shall terminate. Upon the exercise of SARs, the related Option shall terminate to the extent
of an equal number of shares of Company Stock.

          (c) Exercisability. An SAR shall be exercisable during the period
specified by the Committee in the Grant Instrument and shall be subject to such vesting and other
restrictions as may be specified in the Grant Instrument. The Committee may accelerate the
exercisability of any or all outstanding SARs at any time for any reason. SARs may only be
exercised while the Grantee is employed by, or providing service to, the Employer or during the
applicable period after termination of employment or service as
described in Section 5(f) above. A
tandem SAR shall be exercisable only during the period when the Option to which it is related is
also exercisable.

          (d) Grants to Non-Exempt Employees. Notwithstanding the foregoing, SARs granted to
persons who are non-exempt employees under the Fair Labor Standards Act of 1938, as amended, may
not be exercisable for at least six months after

 

 

the date of grant (except that such SARs may
become exercisable, as determined by the Committee, upon the Grantee’s death, Disability or
retirement, or upon a Change of Control or other circumstances permitted by applicable
regulations).

          (e) Value of SARs. When a Grantee exercises SARs, the Grantee shall receive in
settlement of such SARs an amount equal to the value of the stock appreciation for the number of
SARs exercised. The stock appreciation for an SAR is the amount by which the Fair Market Value of
the underlying Company Stock on the date of exercise of the SAR exceeds the base amount of the SAR
as described in subsection (a).

          (f) Form of Payment. The appreciation in an SAR shall be paid in shares of Company
Stock, cash or any combination of the foregoing, as the Committee shall determine. For purposes
of calculating the number of shares of Company Stock to be received, shares of Company Stock
shall be valued at their Fair Market Value on the date of exercise of the SAR.

9. Other Equity Awards

     The Committee may grant Other Equity Awards, which are awards (other than those described in
Sections 5, 6, 7 and 8 of the Plan) that are based on, measured by or payable in Company Stock,
including, without limitation, stock appreciation rights, to any Employee, Non-Employee Director
or Key Advisor, on such terms and conditions as the Committee shall determine. Other Equity Awards
may be awarded subject to the achievement of performance goals or other conditions and may be
payable in cash, Company Stock or any combination of the foregoing, as the Committee shall
determine.

10. Withholding of Taxes

          (a) Required Withholding. All Grants under the Plan shall be subject to applicable
federal (including FICA), state and local tax withholding requirements. The
Employer may require that the Grantee or other person receiving or exercising Grants pay to
the Employer the amount of any federal, state or local taxes that the Employer is required to
withhold with respect to such Grants, or the Employer may deduct from other wages paid by the
Employer the amount of any withholding taxes due with respect to such Grants.

          (b) Election to Withhold Shares. If the Committee so permits, a Grantee may elect to
satisfy the Employer’s tax withholding obligation with respect to Grants paid in Company Stock by
having shares withheld up to an amount that does not exceed the minimum applicable withholding
tax rate for federal (including FICA), state and local tax liabilities. The election must be in
a form and manner prescribed by the Committee and may be subject to the prior approval of the
Committee.

11. Transferability of Grants

          (a) Nontransferability of Grants. Except as provided below, only the Grantee may
exercise rights under a Grant during the Grantee’s lifetime. A Grantee may not transfer those
rights except by will or by the laws of descent and distribution or with

 

 

respect to Grants other
than Incentive Stock Options, if permitted in any specific case by the Committee, pursuant to a
domestic relations order (as defined under the Code or Title I of the Employee Retirement Income
Security Act of 1974, as amended, or the regulations thereunder) or otherwise as permitted by the
Committee. When a Grantee dies, the personal representative or other person entitled to succeed to
the rights of the Grantee (the “Successor Grantee”) may exercise such rights. A Successor Grantee
must furnish proof satisfactory to the Company of his or her right to receive the Grant under the
Grantee’s will or under the applicable laws of descent and distribution.

          (b) Transfer of Nonqualified Stock Options. Notwithstanding the foregoing, the
Committee may provide, in a Grant Instrument, that a Grantee may transfer Nonqualified Stock
Options to family members, or one or more trusts or other entities for the benefit of or owned by
family members, consistent with the applicable securities laws, according to such terms as the
Committee may determine; provided that the Grantee receives no consideration for the transfer of an
Option and the transferred Option shall continue to be subject to the same terms and conditions as
were applicable to the Option immediately before the transfer.

12. Right of First Refusal; Repurchase Right

          (a) Offer. Prior to a Public Offering, if at any time an individual desires to sell,
encumber, or otherwise dispose of shares of Company Stock that were distributed to him or her
under this Plan and that are transferable, the individual may do so only pursuant to a bona fide
written offer, and the individual shall first offer the shares to the Company by giving the
Company written notice disclosing: (i) the name of the proposed transferee of the Company Stock,
(ii) the certificate number and number of shares of Company Stock proposed to be transferred or
encumbered, (iii) the proposed price, (iv) all other terms of the proposed transfer, and (v) a
written copy of the proposed offer. Within 90 days after receipt of such notice, the Company shall
have the option to purchase all or part of such Company Stock at the price and on the terms
described in the written notice; provided that if the price exceeds $1 million, the Company may
pay such price in installments over a period not to exceed five years, at the discretion of the
Committee.

          (b) Sale. In the event the Company (or a stockholder, as described below) does not
exercise the option to purchase Company Stock, as provided above, the individual shall have the
right to sell, encumber, or otherwise dispose of the shares of Company Stock described in
subsection (a) at the price and on the terms of the transfer set forth in the written notice to
the Company, provided such transfer is effected within 15 days after the expiration of the option
period. If the transfer is not effected within such period, the Company must again be given an
option to purchase, as provided above.

          (c) Assignment
of Rights. The Board, in its sole discretion, may waive the Company’s right of
first refusal and repurchase right under this Section 12. If the Company’s right of first refusal
or repurchase right is so waived, the Board may, in its sole discretion, assign such right to the
remaining stockholders of the Company in the same proportion that each stockholder’s stock
ownership bears to the stock ownership of

 

 

all the stockholders of the Company, as determined
by the Board. To the extent that a stockholder has been given such right and does not purchase his
or her allotment, the other stockholders shall have the right to purchase such allotment on the
same basis.

          (d) Purchase by the Company. Prior to a Public Offering, if a Grantee
ceases to be employed by, or provide service to, the Employer, the Company shall have the right
(but not the obligation) to purchase all or part of any Company Stock distributed to the Grantee
under this Plan at its then current Fair Market Value (as defined in Section 5(b)) or at such
other price as may be established in the Grant Instrument; provided, however, that such repurchase
shall be made in accordance with applicable accounting rules to avoid adverse accounting
treatment.

          (e) Public Offering. On and after a Public Offering, the Company shall have no
further right to purchase shares of Company Stock under this Section 12. The requirements of
this Section 12 shall lapse and cease to be effective upon a Public Offering.

          (f) Stockholder’s Agreement. Notwithstanding the provisions of this
Section 12, if the Committee requires that a Grantee execute a stockholder’s agreement with
respect to any Company Stock distributed pursuant to this Plan, which contains a right of first
refusal or repurchase right, the provisions of this Section 12 shall not apply to such Company
Stock, unless the Committee determines otherwise.

13. Change of Control of the Company.

          (a) As used herein, a “Change of Control” shall be deemed to have occurred if:

               (i) Any “person” (as such term is used in sections 13(d) and 14(d) of the Exchange Act) (other
than persons who are stockholders on the effective date of the Plan) becomes a “beneficial owner”
(as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the
Company representing more than 50% of the voting power of the then outstanding securities of the
Company; provided that a Change of Control shall not be deemed to occur as a result of a change of
ownership resulting from the death of a stockholder, and a Change of Control shall not
be deemed to occur as a result of a transaction in which the Company becomes a subsidiary of
another corporation and in which the stockholders of the Company, immediately prior to the
transaction, will beneficially own, immediately after the transaction, shares entitling such
stockholders to more than 50% of all votes to which all stockholders of the parent corporation
would be entitled in the election of directors (without consideration of the rights of any class of
stock to elect directors by a separate class vote); or

               (ii) The stockholders of the Company approve (or, if stockholder approval is not required,
the Board approves) an agreement providing for (i) the merger or consolidation of the Company with
another corporation where the stockholders of the Company, immediately prior to the merger or
consolidation, will not beneficially own, immediately after the merger or consolidation, shares
entitling such

 

 

stockholders to more than 50% of all votes to which all stockholders of the
surviving corporation would be entitled in the election of directors (without consideration of the
rights of any class of stock to elect directors by a separate class vote), (ii) the sale or other
disposition of all or substantially all of the assets of the Company, or (iii) a liquidation or
dissolution of the Company.

          (b) Other Definition. The Committee may modify the definition of Change of Control
for a particular Grant as the Committee deems appropriate to comply with section 409A of the Code
or otherwise.

14. Consequences of a Change of Control

          (a) Acceleration. Upon a Change of Control, unless the Committee determines
otherwise, (i) all outstanding Options and SARs shall accelerate and become fully exercisable,
and (ii) all outstanding Stock Awards, Stock Units and Other Equity Awards shall become fully
vested and shall be payable on terms determined by the Committee.

          (b) Other Alternatives. In the event of a Change of Control, the Committee may take
any of the following actions with respect to any or all outstanding Grants: the Committee may (i)
determine that all outstanding Options and SARs that are not exercised shall be assumed by, or
replaced with comparable options by the surviving corporation (or a parent or subsidiary of the
surviving corporation), and other outstanding Grants that remain in effect after the Change of
Control shall be converted to similar grants of the surviving corporation (or a parent or
subsidiary of the surviving corporation), (ii) require that Grantees surrender their outstanding
Options and SARs in exchange for one or more payments, in cash or Company Stock as determined by
the Committee, in an amount, if any, equal to the amount by which the then Fair Market Value of the
shares of Company Stock subject to the Grantee’s unexercised Options and SARs exceeds the Exercise
Price or base amount of the Options and SARs, on such terms as the Committee determines, or (iii)
after giving Grantees an opportunity to exercise their outstanding Options and SARs, terminate any
or all unexercised Options and SARs at such time as the Committee deems appropriate. Such
assumption, surrender or termination shall take place as of the date of the Change of Control or
such other date as the Committee may specify.

15. Requirements for Issuance or Transfer of Shares

          (a) Stockholder’s Agreement. The Committee may require that a Grantee execute a
stockholder’s agreement, with such terms as the Committee deems appropriate, with respect to
any Company Stock issued or distributed pursuant to this Plan.

          (b) Limitations on Issuance or Transfer of Shares. No Company Stock shall be issued
or transferred in connection with any Grant hereunder unless and until all legal requirements
applicable to the issuance or transfer of such Company Stock have been complied with to the
satisfaction of the Committee. The Committee shall have the

 

 

right to condition any Grant made to
any Grantee hereunder on such Grantee’s undertaking in writing to comply with such restrictions
on his or her subsequent disposition of such shares of Company Stock as the Committee shall deem
necessary or advisable, and certificates representing such shares may be legended to reflect any
such restrictions. Certificates representing shares of Company Stock issued or transferred under
the Plan will be subject to such stop-transfer orders and other restrictions as may be required
by applicable laws, regulations and interpretations, including any requirement that a legend be
placed thereon.

          (c) Lock-Up Period. If so requested by the Company or any representative of the
underwriters (the “Managing Underwriter”) in connection with any underwritten offering of
securities of the Company under the Securities Act of 1933, as amended (the “Securities Act”), a
Grantee (including any successor or assigns) shall not sell or otherwise transfer any shares or
other securities of the Company during the 30-day period preceding and the 180-day period following
the effective date of a registration statement filed by the Company under the Securities Act for
such underwriting (or such shorter period as may be requested in writing by the Managing
Underwriter and agreed to in writing by the Company) (the “Market Standoff Period”). Such
restrictions shall apply only to the first registration statement of the Company to become
effective under the Securities Act that includes securities to be sold on behalf of the Company to
the public in an underwritten public offering under the Securities Act. The Company may impose
stop-transfer instructions with respect to securities subject to the foregoing restrictions until
the end of such Market Standoff Period.

16. Amendment and Termination of the Plan

          (a) Amendment. The Board may amend or terminate the Plan at any time; provided,
however, that the Board shall not amend the Plan without shareholder approval if such approval is
required in order to comply with the Code or to other applicable law.

          (b) Termination of Plan. The Plan shall terminate on the day immediately
preceding the tenth anniversary of its effective date, unless the Plan is terminated earlier
by the Board or is extended by the Board with the approval of the stockholders.

          (c) Termination and Amendment of Outstanding Grants. A termination or amendment of
the Plan that occurs after a Grant is made shall not materially impair the rights of a Grantee
unless the Grantee consents or unless the Committee acts under Section 23(b). The termination of
the Plan shall not impair the power and authority of the Committee with respect to an outstanding
Grant. Whether or not the Plan has terminated, an
outstanding Grant may be terminated or amended under Section 23(b) or may be amended by
agreement of the Company and the Grantee consistent with the Plan.

          (d) Governing Document. The Plan shall be the controlling document. No other
statements, representations, explanatory materials or examples, oral or written,

 

 

may amend the Plan
in any manner. The Plan shall be binding upon and enforceable against the Company and its
successors and assigns.

17. Funding of the Plan

     This Plan shall be unfunded. The Company shall not be required to establish any special or
separate fund or to make any other segregation of assets to assure the payment of any Grants under
this Plan. In no event shall interest be paid or accrued on any Grant, including unpaid
installments of Grants.

18. Rights of Participants

     Nothing in this Plan shall entitle any Employee, Key Advisor, Non-Employee Director or
other person to any claim or right to be granted a Grant under this Plan. Neither this Plan
nor any action taken hereunder shall be construed as giving any individual any rights to be
retained by or in the employ of the Employer or any other employment rights.

19. No Fractional Shares

     No fractional shares of Company Stock shall be issued or delivered pursuant to the Plan or
any Grant. The Board shall determine whether cash, other awards or other property shall be
issued or paid in lieu of such fractional shares or whether such fractional shares or any
rights thereto shall be forfeited or otherwise eliminated.

20. Headings

     Section headings are for reference only. In the event of a conflict between a
title and the content of a Section, the content of the Section shall control.

21. Effective Date of the Plan.

          (a)
Effective Date. The Plan was originally effective October 1, 1999. The Plan as
amended and restated is effective as of December 31, 2006.

          (b) Public Offering. The provisions of the Plan that refer to a Public
Offering, or that refer to, or are applicable to persons subject to, section 16 of the Exchange
Act or section 162(m) of the Code, shall be effective, if at all, upon the initial registration
of the Company Stock under section 12(g) of the Exchange Act, and shall remain effective
thereafter for so long as such stock is so registered.

22. California Requirements

          (a) Application. The provisions of this Section 22 shall apply only if any Grantee is
a resident of the state of California on the date on which a Grant is made under the Plan.

 

 

          (b) California Residents. The following provisions shall apply only to a Grantee who
is a resident of the state of California on the date on which a Grant is made under the Plan:

               (i) A Nonqualified Stock Option may not be granted to a person who, at the time of grant,
owns securities possessing more than 10% of the total combined voting power of all securities of
the Company or any parent or subsidiary of the Company, unless the Exercise Price per share is
not less than 110% of the Fair Market Value of a share on the date of grant.

               (ii) Options granted to persons other than officers, Board members or Key Advisors shall
become exercisable over a period of not more than five years from the date of grant and at a
rate of not less than 20% per year.

               (iii) Stock Awards and Stock Units granted to persons other than officers, Board members or
Key Advisors shall vest over a period of not more than five years from the date of grant and at a
rate of not less than 20% per year.

               (iv) The Company shall provide Grantees with financial statements of the Company at
least annually.

               (v) If shares are repurchased by the Company pursuant to Section 12(d) of the Plan, the
repurchase right must be exercised for cash within 90 days after the date of the Grantee’s
termination of employment or service or within 90 days after exercise of the applicable Option,
whichever is later.

          (c) Grant Limit. As required by California law, at no time shall the total number of
securities issuable upon exercise of all outstanding options to purchase securities of the Company
and the total number of Company securities called for under any bonus or similar plan or agreement
exceed a number of securities which is equal to 30% of then outstanding securities of the Company,
based on the securities of the Company which are outstanding at the time the calculation is made.
The foregoing limit shall be calculated in accordance with applicable California law (California
Code of Regulations Section 260.140.45).

23. Miscellaneous

          (a) Grants in Connection with Corporate Transactions and Otherwise. Nothing contained
in this Plan shall be construed to (i) limit the right of the Committee to make Grants under this
Plan in connection with the acquisition, by purchase, lease, merger, consolidation or otherwise,
of the business or assets of any corporation, firm or association, including Grants to employees
thereof who become Employees, or for other proper corporate purposes, or (ii) limit the right of
the Company to grant stock options or make other awards outside of this Plan. Without limiting the
foregoing, the Committee may make a Grant to an employee, director or advisor of another
corporation who becomes an Employee, Non-Employee Director or Key Advisor by reason of a corporate
merger,
consolidation, acquisition of stock or property, reorganization or liquidation involving the
Company, the parent or any of their subsidiaries in substitution for a stock

 

 

option or stock award
grant made by such corporation. The terms and conditions of the substitute grants may vary from
the terms and conditions required by the Plan and from those of the substituted stock incentives.
The Committee shall prescribe the provisions of the substitute grants.

          (b) Compliance with Law. The Plan, the exercise of Options and the obligations of the
Company to issue or transfer shares of Company Stock under Grants shall be subject to all
applicable laws and to approvals by any governmental or regulatory agency as may be required. It
is the intent of the Company that the Plan and Incentive Stock Options granted under the Plan
comply with the applicable provisions of section 422 of the Code and that, to the extent
applicable, Grants made under the Plan comply with the requirements of section 409A of the Code
and the regulations thereunder. To the extent that any legal requirement as set forth in the Plan
ceases to be required under applicable law, the Committee may determine that such Plan provision
shall cease to apply. The Committee may revoke any Grant if it is contrary to law or modify a
Grant or the Plan to bring a Grant or the Plan into compliance with any applicable law or
regulation.

          (c) Employees Subject to Taxation Outside the United States. With respect to
Grantees who are subject to taxation in countries other than the United States, the Committee may
make Grants on such terms and conditions as the Committee deems appropriate to comply with the
laws of the applicable countries, and the Committee may create such procedures, addenda and
subplans and make such modifications as may be necessary or advisable to comply with such laws.

          (d) Governing Law. The validity, construction, interpretation and effect of the
Plan and Grant Instruments issued under the Plan shall be governed and construed by and
determined in accordance with the laws of the State of Delaware, without giving effect to the
conflict of laws provisions thereof.

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