Document:

Resale Registration Rights Agreement

  
 Exhibit 4.2 

 
 BANC OF AMERICA SECURITIES LLC 
 MCDONALD INVESTMENTS INC. 
 LASALLE DEBT CAPITAL MARKETS, A DIVISION OF 
 ABN AMRO FINANCIAL SERVICES, INC. 
 SCOTIA CAPITAL (USA) INC. 
 C.E. UNTERBERG, TOWBIN 
 WELLS FARGO SECURITIES, LLC 
  
 $60,000,000 AGGREGATE PRINCIPAL AMOUNT 
  
 NAVIGANT INTERNATIONAL, INC. 
  
 4.875% CONVERTIBLE SUBORDINATED DEBENTURES 
  
 DUE 2023 
  
 Resale Registration Rights Agreement 
  
 dated November 7, 2003 

  
 RESALE REGISTRATION RIGHTS
AGREEMENT, dated as of November 7, 2003, between Navigant International, Inc., a Delaware corporation (together with any successor entity, herein referred to as the “Company”) and Banc of America Securities LLC (“BAS”),
McDonald Investments Inc., LaSalle Debt Capital Markets, a division of ABN AMRO Financial Services, Inc., Scotia Capital (USA) Inc., C.E. Unterberg, Towbin and Wells Fargo Securities, LLC, as representatives of the several initial purchasers (the
“Initial Purchasers”) under the Purchase Agreement (as defined below). 
  
 Pursuant to the Purchase Agreement, dated November 3, 2003 (the “Purchase Agreement”), between the Company and the Initial Purchasers, the Company has agreed to issue and sell to the Initial
Purchasers $60,000,000 in aggregate principal amount of the Company’s 4.875% Convertible Subordinated Debentures due 2023 (the “Debentures”) and to BAS an additional $12,000,000 in aggregate principal amount of the Debentures
if BAS exercises its option in full. The Debentures will be convertible into fully paid, nonassessable shares of common stock, par value $0.001 per share, of the Company (the “Common Stock”). The Debentures will be convertible on
the terms, and subject to the conditions, set forth in the Indenture (as defined herein). To induce the Initial Purchasers to purchase the Debentures, the Company has agreed to provide the registration rights set forth in this Agreement pursuant to
Section 5(h) of the Purchase Agreement. 
  
 The parties hereby
agree as follows: 
  
 1. Definitions. Capitalized terms
used in this Agreement without definition shall have their respective meanings set forth in the Purchase Agreement. As used in this Agreement, the following capitalized terms shall have the following meanings: 
  
 “Affiliate” of any specified person means any other person
which, directly or indirectly, is in control of, is controlled by, or is under common control with, such specified person. For purposes of this definition, control of a person means the power, direct or indirect, to direct or cause the direction of
the management and policies of such person whether by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing. 
  
 “Agreement”: This Resale Registration Rights Agreement. 
  
 “Blue Sky Application”: As defined in Section 6(a)(i)
hereof. 
  
 “Amendment Effectiveness Deadline
Date” has the meaning set forth in Section 2(e) hereof. 
  
 “Business Day”: The definition of “Business Day” in the Indenture. 
  
 “Commission”: Securities and Exchange Commission. 
  
 “Common Stock”: As defined in the preamble hereto. 
  
 “Company”: As defined in the preamble hereto. 
  

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 “Debentures”: As defined in the preamble hereto. 
  
 “Effectiveness Period”: As defined in Section 2(a)(iii)
hereof. 
  
 “Effectiveness Target Date”: As
defined in Section 2(a)(ii) hereof. 
  
 “Exchange
Act”: Securities Exchange Act of 1934, as amended. 
  
 “Holder”: A Person who owns, beneficially or otherwise, Transfer Restricted Securities. 
  
 “Indemnified Holder”: As defined in Section 6(a) hereof. 
  
 “Indenture”: The Indenture, dated as of November 7, 2003, between the Company and Wells Fargo Bank
Minnesota, N.A., as trustee (the “Trustee”), pursuant to which the Debentures are to be issued, as such Indenture is amended, modified or supplemented from time to time in accordance with the terms thereof. 
  
 “Initial Purchasers”: As defined in the preamble hereto.

  
 “Liquidated Damages”: As defined in Section
3(a) hereof. 
  
 “Liquidated Damages Payment
Date”: Each May 1 and November 1. 
  
 “Majority
of Holders”: Holders holding over 50% of the aggregate principal amount of Debentures outstanding; provided that, for the purpose of this definition, a holder of shares of Common Stock which constitute Transfer Restricted Securities and
issued upon conversion of the Debentures shall be deemed to hold an aggregate principal amount of Debentures (in addition to the principal amount of Debentures held by such holder) equal to the quotient of (x) the number of such shares of Common
Stock held by such holder and (y) the conversion rate in effect at the time of such conversion as determined in accordance with the Indenture. 
  
 “NASD”: National Association of Securities Dealers, Inc. 
  
 “Notice and Questionnaire”: A written notice executed by the respective Holder and delivered to the Company
containing substantially the information called for by the Selling Securityholder Notice and Questionnaire attached as Annex A to the Offering Memorandum of the Company issued November 3, 2003 relating to the Debentures. 
  
 “Notice Holder”: On any date, a Holder that has delivered a
Notice and Questionnaire to the Company on or prior to such date. 
  
 “Person”: An individual, partnership, corporation, company, unincorporated organization, trust, joint venture or a government or agency or political subdivision thereof. 
  
 “Purchase Agreement”: As defined in the preamble hereto.

  

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 “Prospectus”: The prospectus included in a Shelf Registration Statement, as amended or
supplemented by any prospectus supplement and by all other amendments thereto, including post-effective amendments, and all material incorporated by reference into such prospectus. 
  
 “Record Holder”: With respect to any Liquidated Damages Payment Date, each Person who is a Holder on the
15th day preceding the relevant Liquidated Damages Payment Date. In the case of a Holder of shares of Common Stock
issued upon conversion of the Debentures, “Record Holder” shall mean each Person who is a Holder of shares of Common Stock which constitute Transfer Restricted Securities on the 15th day preceding the relevant Liquidated Damages Payment Date. 
  
 “Registration Default”: As defined in Section 3(a) hereof. 
  
 “Securities Act”: Securities Act of 1933, as amended. 
  
 “Shelf Filing Deadline”: As defined in Section 2(a)(i)
hereof. 
  
 “Shelf Registration Statement”: As
defined in Section 2(a)(i) hereof. 
  
 “Subsequent Shelf
Registration Statement” has the meaning set forth in Section 2(c) hereof. 
  
 “Suspension Notice”: As defined in Section 4(c) hereof. 
  
 “Suspension Period”: As defined in Section 4(b)(i) hereof. 
  
 “TIA”: Trust Indenture Act of 1939, as amended, and the rules and regulations of the Commission thereunder,
in each case, as in effect on the date the Indenture is qualified under the TIA. 
  
 “Transfer Restricted Securities”: Each Debenture and each share of Common Stock issued upon conversion of Debentures until the earlier of: 
  
 (i) the date on which such Debenture or such share of Common
Stock issued upon conversion has been effectively registered under the Securities Act and disposed of in accordance with the Shelf Registration Statement; 
  
 (ii) the date on which such Debenture or such share of Common Stock issued upon conversion is transferred in compliance with Rule 144
under the Securities Act or may be sold or transferred by a person who is not an affiliate of the Company pursuant to Rule 144 under the Securities Act (or any other similar provision then in force) without any volume or manner of sale restrictions
thereunder; or 
  
 (iii) the date on which such
Debenture or such share of Common Stock issued upon conversion ceases to be outstanding (whether as a result of redemption, repurchase and cancellation, conversion or otherwise). 
  

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 “Underwritten Registration”: A registration in which Debentures of the Company are sold
to an underwriter for reoffering to the public. 
  
 Unless the
context otherwise requires, the singular includes the plural, and words in the plural include the singular. 
  
 2. Shelf Registration. 
  
 (a) The Company shall: 
  
 (i) not later than 90 days after the date hereof (the “Shelf Filing Deadline”), cause to be filed a registration
statement pursuant to Rule 415 under the Securities Act (the “Shelf Registration Statement”), which Shelf Registration Statement shall provide for resales of all Transfer Restricted Securities held by Holders that have provided the
information required pursuant to the terms of Section 2(b) hereof; 
  
 (ii) use its best efforts to cause the Shelf Registration Statement to be declared effective by the Commission not later than 180 days after the date hereof (the “Effectiveness Target Date”); and

  
 (iii) use its best efforts to keep the Shelf
Registration Statement continuously effective, supplemented and amended as required by the provisions of Section 4(b) hereof to the extent necessary to ensure that (A) it is available for resales by the Holders of Transfer Restricted Securities
entitled, subject to Section 2(b), to the benefit of this Agreement and (B) conforms with the requirements of this Agreement and the Securities Act and the rules and regulations of the Commission promulgated thereunder as announced from time to
time, for a period (the “Effectiveness Period”) until the earliest of: 
  
 (1) two years following the last date of original issuance of any of the Debentures; 
  
 (2) the date when the Holders of Transfer Restricted
Securities are able to sell all such Transfer Restricted Securities immediately without restriction pursuant to the volume limitation provisions of Rule 144(k) under the Securities Act; or 
  
 (3) the date when all of the Transfer Restricted Securities
of those Holders that complete and deliver in a timely manner the Notice and Questionnaire described below are registered under the Shelf Registration Statement and disposed of in accordance with the Shelf Registration Statement. 
  
 (b) At the time the Shelf Registration Statement is declared
effective, each Holder that became a Notice Holder on or prior to the date ten (10) Business Days prior to such time of effectiveness shall be named as a selling securityholder in the Shelf Registration Statement and the related Prospectus in such a
manner as to permit such 

  

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Holder to deliver such Prospectus to purchasers of Transfer Restricted Securities in accordance with applicable law. None of the Company’s
securityholders (other than the Holders of Transfer Restricted Securities) shall have the right to include any of the Company’s securities in the Shelf Registration Statement. 
  
 (c) If the Shelf Registration Statement or any Subsequent Shelf Registration Statement ceases to be
effective for any reason at any time during the Effectiveness Period (other than because all Transfer Restricted Securities registered thereunder shall have been resold pursuant thereto or shall have otherwise ceased to be Transfer Restricted
Securities), the Company shall use its best efforts to obtain the prompt withdrawal of any order suspending the effectiveness thereof, and in any event shall within thirty (30) days of such cessation of effectiveness amend the Shelf Registration
Statement in a manner reasonably expected to obtain the withdrawal of the order suspending the effectiveness thereof, or file an additional Shelf Registration Statement covering all of the securities that as of the date of such filing are Transfer
Restricted Securities ( a “Subsequent Shelf Registration Statement”). If a Subsequent Shelf Registration Statement is filed, the Company shall use its best efforts to cause the Subsequent Shelf Registration Statement to become
effective as promptly as is practicable after such filing and to keep such Registration Statement (or subsequent Shelf Registration Statement) continuously effective until the end of the Effectiveness Period. 
  
 (d) The Company shall supplement and amend the Shelf
Registration Statement if required by the rules, regulations or instructions applicable to the registration form used by the Company for such Shelf Registration Statement, if required by the Securities Act or as reasonably requested by the Initial
Purchasers or by the Trustee on behalf of the Holders of the Transfer Restricted Securities covered by such Shelf Registration Statement. 
  
 (e) Each Holder agrees that if such Holder wishes to sell Transfer Restricted Securities pursuant to a Shelf Registration Statement and
related Prospectus, it will do so only in accordance with this Section 2(e) and Section 4(b). Each Holder wishing to sell Transfer Restricted Securities pursuant to a Shelf Registration Statement and related Prospectus agrees to deliver a Notice and
Questionnaire to the Company prior to any intended distribution of Transfer Restricted Securities under the Shelf Registration Statement. From and after the date the Shelf Registration Statement is declared effective the Company shall, as promptly
as practicable after the date a Notice and Questionnaire is delivered, and in any event upon the later of (x) ten (10) Business Days after such date (but no earlier than ten (10) Business Days after effectiveness) or (y) ten (10) Business Days after
the expiration of any Suspension Period in effect when the Notice and Questionnaire is delivered or put into effect within ten (10) Business Days of such delivery date or, if the Company is required to file with the Commission a new Shelf
Registration Statement, within thirty (30) calendar days after the date a Notice and Questionnaire is delivered: 
  
 (i) if required by applicable law, file with the Commission a post-effective amendment to the Shelf Registration Statement or an
additional Shelf Registration Statement or prepare and, if required by applicable law, file a 

  

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supplement to the related Prospectus or a supplement or amendment to any document incorporated therein by reference or file any other required document so
that the Holder delivering such Notice and Questionnaire is named as a selling securityholder in the Shelf Registration Statement and the related Prospectus in such a manner as to permit such Holder to deliver such Prospectus to purchasers of the
Transfer Restricted Securities in accordance with applicable law and, if the Company shall file a post-effective amendment to the Shelf Registration Statement or such additional Shelf Registration Statement, as the case may be, use its best efforts
to cause such post-effective amendment or such additional Shelf Registration Statement, as the case may be, to be declared effective under the Securities Act as promptly as is practicable, but in any event by the date (the “Amendment
Effectiveness Deadline Date”) that is sixty (60) days after the date such post effective amendment is required by this clause to be filed; 
  
 (ii) provide such Holder copies of any documents filed pursuant to Section 2(e)(i); and 
  
 (iii) notify such Holder as promptly as practicable after
the effectiveness under the Securities Act of any post-effective amendment filed pursuant to Section 2(e)(i); 
  
 provided that if such Notice and Questionnaire is delivered during a Suspension Period, the Company shall so inform the Holder delivering such Notice and Questionnaire and shall take the actions set forth in
clauses (i), (ii) and (iii) above upon expiration of the Suspension Period in accordance with Section 4(b). Notwithstanding anything contained herein to the contrary, (i) the Company shall be under no obligation to name any Holder that is not a
Notice Holder as a selling securityholder in any Registration Statement or related Prospectus and (ii) the Amendment Effectiveness Deadline Date shall be extended by up to ten (10) Business Days from the expiration of a Suspension Period (and the
Company shall incur no obligation to pay Liquidated Damages during such extension) if such Suspension Period shall be in effect on the Amendment Effectiveness Deadline Date. 
  
 3. Liquidated Damages. 
  
 (a) If: 
  
 (i) the Shelf Registration Statement is not filed with the Commission prior to or on the Shelf Filing Deadline; 
  
 (ii) the Shelf Registration Statement has not been declared
effective by the Commission prior to or on the Effectiveness Target Date; 
  
 (iii) the Company has failed to perform its obligations set forth in Section 2(e) within the time period required therein; 
  

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 (iv) any post-effective amendment to a Shelf Registration filed pursuant to Section
2(e)(i) has not become effective under the Securities Act on or prior to the Amendment Effectiveness Deadline Date; 
  
 (v) except as provided in Section 4(b)(i) hereof, the Shelf Registration Statement is filed and declared effective but, during the
Effectiveness Period, shall thereafter cease to be effective or fail to be usable for its intended purpose without being succeeded within ten Business Days by a post-effective amendment to the Shelf Registration Statement, a supplement to the
Prospectus or a report filed with the Commission pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act that cures such failure and, in the case of a post-effective amendment, is itself immediately declared effective; or 
  
 (vi) (A) prior to or on the 45th or 60th day, as the case
may be, of any Suspension Period, such suspension has not been terminated or (B) Suspension Periods exceed an aggregate of 120 days in any 360 day period, 
  
 (each such event referred to in foregoing clauses (i) through (vi), a “Registration Default”), the Company hereby agrees to pay interest
(“Liquidated Damages”) with respect to the Transfer Restricted Securities from and including the day following the Registration Default to but excluding the earlier of (1) the day on which the Registration Default has been cured and
(2) the date the Shelf Registration Statement is no longer required to be kept effective as set out below: 
  
 (A) in respect of the Debentures, the Company agrees to pay interest to each holder of Debentures accruing at a rate (x) with respect to
the first 90-day period during which a Registration Default shall have occurred and be continuing, equal to 0.25% per annum of the aggregate principal amount of the Debentures, and (y) with respect to the period commencing on the 91st day following
the day the Registration Default shall have occurred and be continuing, equal to 0.50% per annum of the aggregate principal amount of the Debentures; provided that in no event shall Liquidated Damages accrue at a rate per year exceeding 0.50%
of the aggregate principal amount of the Debentures; 
  
 (B) in respect of Debentures submitted for conversion into Common Stock during a Registration Default, the Company agrees to pay accrued and unpaid Liquidated Damages calculated in accordance with paragraph (A) up to and including the
Conversion Date (as defined in the Indenture) and to issue additional shares to each Holder that has submitted for conversion some or all of its Debentures into Common Stock equal to 3% of the applicable Conversion Rate (as defined in the Indenture)
for each $1,000 principal amount of Debentures (except to the extent the Company elects to deliver cash upon conversion in accordance with the terms of the Indenture); and 
  
 (C) in respect of Common Stock, each Holder of such Common Stock will not be entitled to any Liquidated
Damages. 
  

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 (b) All accrued Liquidated Damages shall be paid in arrears to Record Holders by the
Company on each Liquidated Damages Payment Date. Upon the cure of all Registration Defaults relating to any particular Debenture or share of Common Stock, the accrual of Liquidated Damages with respect to such Debenture or share of Common Stock will
cease. 
  
 All obligations of the Company set forth in this
Section 3 that are outstanding with respect to any Transfer Restricted Security at the time such security ceases to be a Transfer Restricted Security shall survive until such time as all such obligations with respect to such Transfer Restricted
Security shall have been satisfied in full. 
  
 The Liquidated
Damages set forth above shall be the exclusive monetary remedy available to the Holders of Transfer Restricted Securities for each Registration Default. 
  
 4. Registration Procedures. 
  
 (a) In connection with the Shelf Registration Statement, the Company shall comply with all the provisions of Section 4(b) hereof and shall
use its best efforts to effect such registration to permit the sale of the Transfer Restricted Securities, and pursuant thereto, shall as expeditiously as possible prepare and file with the Commission a Shelf Registration Statement relating to the
registration on any appropriate form under the Securities Act. 
  
 (b) In connection with the Shelf Registration Statement and any Prospectus required by this Agreement to permit the sale or resale of Transfer Restricted Securities, the Company shall: 
  
 (i) Subject to any notice by the Company in accordance with
this Section 4(b) of the existence of any fact or event of the kind described in Section 4(b)(iii)(D), use its best efforts to keep the Shelf Registration Statement continuously effective during the Effectiveness Period; upon the occurrence of any
event that would cause the Shelf Registration Statement or the Prospectus contained therein (A) to contain a material misstatement or omission or (B) not to be effective and usable for resale of Transfer Restricted Securities during the
Effectiveness Period, the Company shall file promptly an appropriate amendment to the Shelf Registration Statement, a supplement to the Prospectus or a report filed with the Commission pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange
Act, in the case of clause (A), correcting any such misstatement or omission, and, in the case of either clause (A) or (B), use its best efforts to cause such amendment to be declared effective and the Shelf Registration Statement and the related
Prospectus to become usable for their intended purposes as soon as practicable thereafter. Notwithstanding the foregoing, the Company may suspend the effectiveness of the Shelf Registration Statement by written notice to the Holders for a period not
to exceed an aggregate of 45 days in any 90-day period (each such period, a “Suspension Period”) if: 
  
 (x) an event occurs and is continuing as a result of which the Shelf Registration Statement, the Prospectus, any amendment or supplement
thereto, or any document incorporated by reference therein would, in the Company’s judgment, contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements
therein not misleading; and 
  

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 (y) the Company determines in good faith that the disclosure of such event at such time
would be seriously detrimental to the Company and its subsidiaries; 
  
 provided that, in the event the disclosure relates to a previously undisclosed proposed or pending material business transaction, the disclosure of which the Company determines in good faith would be reasonably likely to impede the
Company’s ability to consummate such transaction, the Company may extend a Suspension Period from 45 days to 60 days; provided, however, that Suspension Periods shall not exceed an aggregate of 120 days in any 360-day period. The Company shall
not be required to specify in the written notice to the Holders the nature of the event giving rise to the Suspension Period. 
  
 (ii) Prepare and file with the Commission such amendments and post-effective amendments to the Shelf Registration Statement as may be
necessary to keep the Shelf Registration Statement effective during the Effectiveness Period; cause the Prospectus to be supplemented by any required Prospectus supplement, and as so supplemented to be filed pursuant to Rule 424 under the Securities
Act, and to comply fully with the applicable provisions of Rules 424 and 430A under the Securities Act in a timely manner; and comply with the provisions of the Securities Act with respect to the disposition of all Debentures covered by the Shelf
Registration Statement during the applicable period in accordance with the intended method or methods of distribution by the sellers thereof set forth in the Shelf Registration Statement or supplement to the Prospectus. 
  
 (iii) Advise the selling Holders promptly and, if requested
by such selling Holders, to confirm such advice in writing, except as provided in clause (D) below: 
  
 (A) when the Prospectus or any Prospectus supplement or post-effective amendment has been filed, and, with respect to the Shelf
Registration Statement or any post-effective amendment thereto, when the same has become effective, 
  
 (B) of any request by the Commission for amendments to the Shelf Registration Statement or amendments or supplements to the Prospectus or
for additional information relating thereto, 
  
 (C) of the issuance by the Commission of any stop order suspending the effectiveness of the Shelf Registration Statement under the Securities Act or of the suspension by any state securities commission of the 

  

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qualification of the Transfer Restricted Securities for offering or sale in any jurisdiction, or the initiation of any proceeding for any of the preceding
purposes, or 
  
 (D) of the existence of any
fact or the happening of any event, during the Effectiveness Period, that makes any statement of a material fact made in the Shelf Registration Statement, the Prospectus, any amendment or supplement thereto, or any document incorporated by reference
therein untrue, or that requires the making of any additions to or changes in the Shelf Registration Statement or the Prospectus in order to make the statements therein not misleading. 
  
 If at any time the Commission shall issue any stop order suspending the effectiveness of the Shelf Registration Statement,
or any state securities commission or other regulatory authority shall issue an order suspending the qualification or exemption from qualification of the Transfer Restricted Securities under state securities or Blue Sky laws, the Company shall use
its best efforts to obtain the withdrawal or lifting of such order at the earliest possible time and will provide to each Holder who is named in the Shelf Registration Statement prompt notice of the withdrawal of any such order. 
  
 (iv) Make available at reasonable times for inspection by
one or more representatives of the selling Holders, designated in writing by a Majority of Holders whose Transfer Restricted Securities are included in the Shelf Registration Statement, and any attorney or accountant retained by such selling
Holders, all financial and other records, pertinent corporate documents and properties of the Company as shall be reasonably necessary to enable them to conduct a reasonable investigation within the meaning of Section 11 of the Securities Act, and
cause the Company’s officers, directors, managers and employees to supply all information reasonably requested by any such representative or representatives of the selling Holders, attorney or accountant in connection therewith; provided,
however, that the Company shall have no obligation to deliver information to any selling Holder or representative pursuant to this Section 4(b)(iv) unless such selling Holder or representative shall have executed and delivered a confidentiality
agreement in a form acceptable to the Company relating to such information. 
  
 (v) If requested by any selling Holders, promptly incorporate in the Shelf Registration Statement or Prospectus, pursuant to a supplement or post-effective amendment if necessary, such information as such selling
Holders may reasonably request to have included therein, including, without limitation, information relating to the “Plan of Distribution” of the Transfer Restricted Securities. 
  
 (vi) Furnish to each selling Holder upon their request,
without charge, at least one copy of the Shelf Registration Statement, as first filed with the Commission, and of each amendment thereto (and any documents incorporated by 

  

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reference therein or exhibits thereto (or exhibits incorporated in such exhibits by reference) as such Person may request). 
  
 (vii) Deliver to each selling Holder, without charge, as
many copies of the Prospectus (including each preliminary Prospectus) and any amendment or supplement thereto as such Persons reasonably may request; subject to any notice by the Company in accordance with this Section 4(b) of the existence of any
fact or event of the kind described in Section 4(b)(iii)(D), the Company hereby consents to the use of the Prospectus and any amendment or supplement thereto by each of the selling Holders in connection with the offering and the sale of the Transfer
Restricted Securities covered by the Prospectus or any amendment or supplement thereto. 
  
 (viii) Before any public offering of Transfer Restricted Securities, cooperate with the selling Holders and their counsel in connection
with the registration and qualification of the Transfer Restricted Securities under the securities or Blue Sky laws of such jurisdictions in the United States as the selling Holders may reasonably request and do any and all other acts or things
necessary or advisable to enable the disposition in such jurisdictions of the Transfer Restricted Securities covered by the Shelf Registration Statement; provided, however, that the Company shall not be required (A) to register or qualify as
a foreign corporation or a dealer of securities where it is not now so qualified or to take any action that would subject it to the service of process in any jurisdiction where it is not now so subject or (B) to subject itself to general or
unlimited service of process or to taxation in any such jurisdiction if they are not now so subject. 
  
 (ix) Cooperate with the selling Holders to facilitate the timely preparation and delivery of certificates representing Transfer Restricted
Securities to be sold and not bearing any restrictive legends (unless required by applicable securities laws); and enable such Transfer Restricted Securities to be in such denominations and registered in such names as the Holders may request at
least two Business Days before any sale of Transfer Restricted Securities. 
  
 (x) Use its best efforts to cause the Transfer Restricted Securities covered by the Shelf Registration Statement to be registered with or approved by such other U.S. governmental agencies or authorities as may be
necessary to enable the seller or sellers thereof to consummate the disposition of such Transfer Restricted Securities. 
  
 (xi) Subject to Section 4(b)(i) hereof, if any fact or event contemplated by Section 4(b)(iii)(D) hereof shall exist or have occurred, use
its best efforts to prepare a supplement or post-effective amendment to the Shelf Registration Statement or related Prospectus or any document incorporated therein by reference or file any other required document so that, as thereafter delivered to
the purchasers of Transfer Restricted Securities, the Prospectus will not contain an untrue statement of a material fact or omit to state any material fact required to be 

  

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stated therein or necessary to make the statements therein, in light of the circumstances in which they are made, not misleading. 
  
 (xii) Provide CUSIP numbers for all Transfer Restricted
Securities not later than the effective date of the Shelf Registration Statement and provide the Trustee under the Indenture with certificates for the Debentures that are in a form eligible for deposit with The Depository Trust Company. 

 
 (xiii) Cooperate and assist in any filings required to be
made with the NASD and in the performance of any due diligence investigation by any underwriter that is required to be retained in accordance with the rules and regulations of the NASD. 
  
 (xiv) Otherwise use its best efforts to comply with all applicable rules and regulations of the Commission
and all reporting requirements under the rules and regulations of the Exchange Act. 
  
 (xv) Cause the Indenture to be qualified under the TIA not later than the effective date of the Shelf Registration Statement required by
this Agreement, and, in connection therewith, cooperate with the Trustee and the holders of Debentures to effect such changes to the Indenture as may be required for such Indenture to be so qualified in accordance with the terms of the TIA; and
execute and use its best efforts to cause the Trustee thereunder to execute all documents that may be required to effect such changes and all other forms and documents required to be filed with the Commission to enable such Indenture to be so
qualified in a timely manner. 
  
 (xvi) Cause all
Common Stock covered by the Shelf Registration Statement to be listed or quoted, as the case may be, on each securities exchange or automated quotation system on which Common Stock is then listed or quoted. 
  
 (xvii) Provide to each Holder upon written request each
document filed with the Commission pursuant to the requirements of Section 13 and Section 15 of the Exchange Act after the effective date of the Shelf Registration Statement, unless such document is available through the Commission’s EDGAR
system. 
  
 (c) Each Holder agrees by acquisition
of a Transfer Restricted Security that, upon receipt of any notice (a “Suspension Notice”) from the Company of the existence of any fact of the kind described in Section 4(b)(iii)(D) hereof, such Holder will forthwith discontinue
disposition of Transfer Restricted Securities pursuant to the Shelf Registration Statement until: 
  
 (i) such Holder has received copies of the supplemented or amended Prospectus contemplated by Section 4(b)(xi) hereof; or 
  

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 (ii) such Holder is advised in writing by the Company that the use of the Prospectus may
be resumed, and has received copies of any additional or supplemental filings that are incorporated by reference in the Prospectus. 
  
 If so directed by the Company, each Holder will deliver to the Company (at the Company’s expense) all copies, other than permanent file copies then in such
Holder’s possession, of the Prospectus covering such Transfer Restricted Securities that was current at the time of receipt of such notice of suspension. 
  

(d) Each Holder agrees by acquisition of a Transfer Restricted Security, that no Holder shall be entitled to sell any of such Transfer
Restricted Securities pursuant to a Registration Statement, or to receive a Prospectus relating thereto, unless such Holder has furnished the Company with a Notice and Questionnaire as required pursuant to Section 2(e) hereof (including the
information required to be included in such Notice and Questionnaire) and the information set forth in the next sentence. Each Notice Holder agrees promptly to furnish to the Company all information required to be disclosed in order to make the
information previously furnished to the Company by such Notice Holder not misleading and any other information regarding such Notice Holder and the distribution of such Transfer Restricted Securities and the Company may from time to time reasonably
request in writing. Any sale of any Transfer Restricted Securities by any Holder shall constitute a representation and warranty by such Holder that the information relating to such Holder and its plan of distribution is as set forth in the
Prospectus delivered by such Holder in connection with such disposition, that such Prospectus does not as of the time of such sale contain any untrue statement of a material fact relating to or provided by such Holder to its plan of distribution and
that such Prospectus does not as of the time of such sale omit to state any material fact relating to or provided by such Holder or its plan of distribution necessary to make the statements in such Prospectus, in the light of the circumstances under
which they were made not misleading. 
  
 5. Registration
Expenses. 
  
 All expenses incident to the Company’s
performance of or compliance with this Agreement shall be borne by the Company regardless of whether a Shelf Registration Statement becomes effective, including, without limitation: 
  
 (i) all registration and filing fees and expenses (including filings made with the NASD); 
  
 (ii) all fees and expenses of compliance with federal
securities and state Blue Sky or securities laws; 
  
 (iii) all expenses of printing (including printing of Prospectuses and certificates for the Common Stock to be issued upon conversion of the Debentures) and the Company’s expenses for messenger and delivery services and telephone;

  
 (iv) all fees and disbursements of counsel to
the Company; 
  

 13 

 (v) all application and filing fees in connection with listing (or authorizing for
quotation) the Common Stock on a national securities exchange or automated quotation system pursuant to the requirements hereof; and 
  
 (vi) all fees and disbursements of independent certified public accountants of the Company. 
  
 The Company shall bear its internal expenses (including, without limitation,
all salaries and expenses of their officers and employees performing legal, accounting or other duties), the expenses of any annual audit and the fees and expenses of any Person, including special experts, retained by the Company. 
  
 6. Indemnification And Contribution.  
  
 (a) The Company agrees to indemnify and hold harmless each
Holder of Transfer Restricted Securities covered by the Shelf Registration Statement (including each Initial Purchaser) and its directors and officers and each person, if any, who controls any such Holder within the meaning of the Securities Act or
the Exchange Act (each, an “Indemnified Holder”), against any loss, claim, damage, liability or expense, joint or several, or any action in respect thereof (including, but not limited to, any loss, claim, damage, liability or action
relating to resales of the Transfer Restricted Securities), to which such Indemnified Holder may become subject, insofar as any such loss, claim, damage, liability or action arises out of, or is based upon: 
  
 (i) any untrue statement or alleged untrue statement of a
material fact contained in (A) the Shelf Registration Statement as originally filed or in any amendment thereof, in any Prospectus, or in any amendment or supplement thereto or (B) any blue sky application or other document or any amendment or
supplement thereto prepared or executed by the Company (or based upon written information furnished by or on behalf of the Company expressly for use in such blue sky application or other document or amendment on supplement) filed in any jurisdiction
specifically for the purpose of qualifying any or all of the Transfer Restricted Securities under the securities law of any state or other jurisdiction (such application or document being hereinafter called a “Blue Sky
Application”); or 
  
 (ii) the omission
or alleged omission to state therein any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, 
  
 and agrees to reimburse each Indemnified Holder promptly upon demand for any
legal or other expenses reasonably incurred by such Indemnified Holder in connection with investigating, defending, settling, compromising or paying any such loss, claim, damage, liability, expense or action; provided, however, that the
Company shall not be liable in any such case to the extent that any such loss, claim, damage, liability or expense arises out of, or is based upon, any untrue statement or alleged untrue statement or omission or alleged omission made in reliance
upon and in conformity with written information 

  

 14 

 
furnished to the Company by or on behalf of such Holder (or its related Indemnified Holder) specifically for use therein. The foregoing indemnity agreement
is in addition to any liability which the Company may otherwise have. 
  
 (b) Each Holder, severally and not jointly, agrees to indemnify and hold harmless the Company, its directors and officers and each person, if any, who controls the Company within the meaning of the Securities Act or
the Exchange Act to the same extent as the foregoing indemnity from the Company to each such Holder, but only with reference to written information relating to such Holder furnished to the Company by or on behalf of such Holder specifically for
inclusion in the documents referred to in the foregoing indemnity. This indemnity agreement set forth in this Section shall be in addition to any liabilities which any such Holder may otherwise have. In no event shall any Holder, its directors,
officers or any person who controls such Holder be liable or responsible for any amount in excess of the amount by which the total amount received by such Holder with respect to its sale of Transfer Restricted Securities pursuant to a Shelf
Registration Statement exceeds (i) the amount paid by such Holder for such Transfer Restricted Securities and (ii) the amount of any damages that such Holder, its directors, officers or any person who controls such Holder has otherwise been required
to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. 
  
 (c) Promptly after receipt by an indemnified party under this Section 6 of notice of any claim or the commencement of any action, the
indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under this Section 6, notify the indemnifying party in writing of the claim or the commencement of that action; provided, however, that the
failure to notify the indemnifying party shall not relieve it from any liability which it may have under this Section 6 except to the extent it has been materially prejudiced by such failure and, provided, further, that the failure to notify
the indemnifying party shall not relieve it from any liability which it may have to an indemnified party otherwise than under this Section 6. If any such claim or action shall be brought against an indemnified party, and it shall notify the
indemnifying party thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it wishes, jointly with any other similarly notified indemnifying party, to assume the defense thereof with counsel satisfactory to
the indemnified party. After notice from the indemnifying party to the indemnified party of its election to assume the defense of such claim or action, the indemnifying party shall not be liable to the indemnified party under this Section 6 for any
legal or other expenses subsequently incurred by the indemnified party in connection with the defense thereof other than reasonable costs of investigation; provided, however, that the Holders shall have the right to employ a single counsel to
represent jointly the Holders and their officers, employees and controlling persons who may be subject to liability arising out of any claim in respect of which indemnity may be sought by the Holders against the Company under this Section 6 if the
Holders seeking indemnification shall have been advised by legal counsel that there may be one or more legal defenses available to such Holders and their respective officers, employees and controlling persons that are different from or additional to
those available to the Company, and in that event, the fees and expenses of such separate counsel shall be paid by the Company. No indemnifying party shall: 
  
 (i) without the prior written consent of the indemnified parties (which consent shall not be unreasonably withheld) settle or compromise
or consent to the entry of any judgment with respect to any pending or threatened claim, action, suit or proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified parties are actual or
potential parties to such claim or action), unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising out of such claim, action, suit or proceeding, or 
  

 15 

 (ii) be liable for any settlement of any such action effected without its written consent
(which consent shall not be unreasonably withheld), but if settled with its written consent or if there be a final judgment for the plaintiff in any such action, the indemnifying party agrees to indemnify and hold harmless any indemnified party from
and against any loss of liability by reason of such settlement or judgment. 
  
 (d) The indemnifying party under this Section shall not be liable for any settlement of any proceeding effected without its written consent, which shall not be withheld unreasonably, but if settled with such consent
or if there is a final judgment for the plaintiff, the indemnifying party agrees to indemnify the indemnified party against any loss, claim, damage, liability or expense by reason of such settlement or judgment. Notwithstanding the foregoing
sentence, if at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel as contemplated by Section 6(c) hereof, the indemnifying party agrees that it shall be
liable for any settlement of any proceeding effected without its written consent if (i) such settlement is entered into more than 30 days after receipt by such indemnifying party of the aforesaid request and (ii) such indemnifying party shall not
have reimbursed the indemnified party in accordance with such request prior to the date of such settlement. No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement, compromise or consent to the
entry of judgment in any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity was or could have been sought hereunder by such indemnified party, unless such
settlement, compromise or consent (x) includes an unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding and (y) does not include a statement as to or an admission
of fault, culpability or a failure to act by or on behalf of any indemnified party. 
  
 (e) If the indemnification provided for in this Section 6 shall for any reason be unavailable or insufficient to hold harmless an
indemnified party under Section 6(a) or 6(b) in respect of any loss, claim, damage or liability (or action in respect thereof) referred to therein, each indemnifying party shall, in lieu of indemnifying such indemnified party, contribute to the
amount paid or payable by such indemnified party as a result of such loss, claim, damage or liability (or action in respect thereof): 
  
 (i) in such proportion as is appropriate to reflect the relative benefits received by the Company from the offering and sale of the
Transfer Restricted 

  

 16 

 
Securities on the one hand and a Holder with respect to the sale by such Holder of the Transfer Restricted Securities on the other, or 
  
 (ii) if the allocation provided by Section (6)(d)(i) is not
permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in Section 6(d)(i) but also the relative fault of the Company on the one hand and the Holders on the other in connection with the
statements or omissions or alleged statements or alleged omissions that resulted in such loss, claim, damage or liability (or action in respect thereof), as well as any other relevant equitable considerations. 
  
 The relative benefits received by the Company on the one hand and a Holder on the other with
respect to such offering and such sale shall be deemed to be in the same proportion as the total net proceeds from the offering of the Debentures purchased under the Purchase Agreement (before deducting expenses) received by the Company, on the one
hand, bear to the total proceeds received by such Holder with respect to its sale of Transfer Restricted Securities on the other. The relative fault of the parties shall be determined by reference to whether the untrue or alleged untrue statement of
a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company on the one hand or the Holders on the other, the intent of the parties and their relative knowledge, access to information
and opportunity to correct or prevent such statement or omission. The Company and each Holder agree that it would not be just and equitable if the amount of contribution pursuant to this Section 6(d) were determined by pro rata allocation or
by any other method of allocation that does not take into account the equitable considerations referred to in the first sentence of this paragraph (d). 
  
 The amount paid or payable by an indemnified party as a result of the loss, claim, damage or liability, or action in respect thereof, referred to above in
this Section 6 shall be deemed to include, for purposes of this Section 6, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending or preparing to defend any such action or claim.

  
 Notwithstanding the provisions of this Section 6, no Holder
shall be required to contribute any amount in excess of the amount by which the total price at which the Transfer Restricted Securities purchased by it were resold exceeds the amount of any damages which such Holder has otherwise been required to
pay by reason of any untrue or alleged untrue statement or omission or alleged omission. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person
who was not guilty of such fraudulent misrepresentation. The Holders’ obligations to contribute as provided in this Section 6(d) are several and not joint. 
  
 (f) The provisions of this Section 6 shall remain in full force and effect, regardless of any investigation
made by or on behalf of any Holder or the Company or any of the officers, directors or controlling persons referred to in Section 6 hereof, and will survive the sale by a Holder of Transfer Restricted Securities. 
  
 7. Rule 144A and Rule 144. The Company agrees with each Holder, for so
long as any Transfer Restricted Securities remain outstanding and during any period in which the 

  

 17 

 
Company (i) is not subject to Section 13 or 15(d) of the Exchange Act, to make available, upon request of any Holder, to such Holder or beneficial owner of
Transfer Restricted Securities in connection with any sale thereof and any prospective purchaser of such Transfer Restricted Securities designated by such Holder or beneficial owner, the information required by Rule 144A(d)(4) under the Securities
Act in order to permit resales of such Transfer Restricted Securities pursuant to Rule 144A, and (ii) is subject to Section 13 or 15 (d) of the Exchange Act, to make all filings required thereby in a timely manner in order to permit resales of such
Transfer Restricted Securities pursuant to Rule 144. 
  
 8. No
Participation In Underwritten Registrations. No Holder may participate in any Underwritten Registration hereunder. 
  
 9. Miscellaneous. 
  
 (a) Remedies. The Company acknowledges and agrees that any failure by the Company to comply with its obligations under Section 2
hereof may result in material irreparable injury to the Initial Purchasers or the Holders for which there is no adequate remedy at law, that it will not be possible to measure damages for such injuries precisely, and that, in the event of any such
failure, the Initial Purchasers or any Holder may obtain such relief as may be required to specifically enforce the Company’s obligations under Section 2 hereof. The Company further agrees to waive the defense in any action for specific
performance that a remedy at law would be adequate. 
  
 (b) Actions Affecting Transfer Restricted Securities. The Company shall not, directly or indirectly, take any action with respect to the Transfer Restricted Securities as a class that would adversely affect the ability of the Holders
of Transfer Restricted Securities to include such Transfer Restricted Securities in a registration undertaken pursuant to this Agreement. 
  
 (c) No Inconsistent Agreements. The Company has not, as of the date hereof, entered into, nor shall it, on or after the date
hereof, enter into, any agreement with respect to its securities that is inconsistent with the rights granted to the Holders in this Agreement or otherwise conflicts with the provisions hereof. In addition, the Company shall not grant to any of its
securityholders (other than the Holders of Transfer Restricted Securities in such capacity) the right to include any of its securities in the Shelf Registration Statement provided for in this Agreement other than the Transfer Restricted Securities.

  
 (d) Amendments and Waivers. This
Agreement may not be amended, modified or supplemented, and waivers or consents to or departures from the provisions hereof may not be given, unless the Company has obtained the written consent of a Majority of Holders; provided,
however, that with respect to any matter that directly or indirectly adversely affects the rights of any Initial Purchaser hereunder, the Company shall obtain the written consent of each such Initial Purchaser against which such amendment,
qualification, supplement, waiver or consent is to be effective. Notwithstanding the foregoing (except the foregoing proviso), a waiver or consent to depart from the provisions hereof, with respect to a matter, which relates exclusively to the
rights of 

  

 18 

 
Holders whose securities are being sold pursuant to a Shelf Registration Statement and does not directly or indirectly adversely affect the rights of other
Holders, may be given by the Majority Holders, determined on the basis of Debentures being sold rather than registered under such Shelf Registration Statement. 
  

(e) Notices. All notices and other communications provided for or permitted hereunder shall be made in writing by hand delivery,
first class mail (registered or certified, return receipt requested), telex, facsimile transmission, or air courier guaranteeing overnight delivery: 
  
 (i) if to a Holder, at the address set forth on the records of the registrar under the Indenture or the transfer agent of the Common
Stock, as the case may be; and 
  
 (ii) if to the
Company, initially at its address set forth in the Purchase Agreement. 
  
 All such notices and communications shall be deemed to have been duly given: at the time delivered by hand, if personally delivered; five Business Days after being deposited in the mail, postage prepaid, if mailed; when answered back, if
telexed; when receipt acknowledged, if transmitted by facsimile; and on the next Business Day, if timely delivered to an air courier guaranteeing overnight delivery. 
  
 Any party hereto may change the address for receipt of communications by giving written notice to the others. 
  
 (f) Successors and Assigns. This Agreement shall
inure to the benefit of and be binding upon the successors and assigns of each of the parties, including without limitation and without the need for an express assignment, subsequent Holders of Transfer Restricted Securities. The Company hereby
agrees to extend the benefit of this Agreement to any Holder and any such Holder may specifically enforce the provisions of this Agreement as if an original party hereto. 
  
 (g) Counterparts. This Agreement may be executed in any number of counterparts and by the parties
hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. 
  
 (h) Debentures Held by the Company or Their Affiliates. Whenever the consent or approval of Holders
of a specified percentage of Transfer Restricted Securities is required hereunder, Transfer Restricted Securities held by the Company or its Affiliates (other than subsequent Holders if such subsequent Holders are deemed to be Affiliates solely by
reason of their holding of such Debentures) shall not be counted in determining whether such consent or approval was given by the Holders of such required percentage. 
  
 (i) Headings. The headings in this Agreement are for convenience of reference only and shall not
limit or otherwise affect the meaning hereof. 
  

 19 

 (j) Governing Law. This Agreement shall be governed by and construed in accordance
with the law of the State of New York. 
  
 (k)
Severability. If any one or more of the provisions contained herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable, the validity, legality and enforceability of any such provision in every other
respect and of the remaining provisions contained herein shall not be affected or impaired thereby, it being intended that all of the rights and privileges of the parties shall be enforceable to the fullest extent permitted by law. 
  
 (l) Entire Agreement. This Agreement is intended by
the parties as a final expression of their agreement and intended to be a complete and exclusive statement of the agreement and understanding of the parties hereto in respect of the subject matter contained herein. There are no restrictions,
promises, warranties or undertakings, other than those set forth or referred to herein with respect to the registration rights granted by the Company with respect to the Transfer Restricted Securities. This Agreement supersedes all prior agreements
and understandings between the parties with respect to such subject matter. 
  

 20 

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

  

					
	NAVIGANT INTERNATIONAL, INC.
		
	By:	 	 /s/ Eugene A. Over, Jr.

	 	 	

	 	 	 Name:
	 	 Eugene A. Over, Jr.

	 	 	 Title:
	 	 Senior Vice President of Administration, General Counsel and Secretary

  

					
	BANC OF AMERICA SECURITIES LLC
	Acting severally on behalf of themselves and the several Initial Purchasers
	
	By BANC OF AMERICA SECURITIES LLC
			
	By:	 	/s/	 	Stephen A. Deily
	 	 	

	 	 	 Name:
	 	 Stephen A. Deily

	 	 	 Title:
	 	 Managing Director2000 Stock Incentive Plan

 Exhibit 10.3 
  
 NATIONAL FINANCIAL PARTNERS CORP. 
 2000 STOCK INCENTIVE PLAN 
  
 SECTION 1.
Purpose; Definitions 
  
 The purpose of the Plan is to give
National Financial Partners Corp. and any Related Entity (each as defined below) a competitive advantage in attracting, retaining and motivating officers, employees, independent contractors (including, without limitation, managers, including entity
managers), consultants and non-employee directors, and to provide the Company and its Related Entities with a stock plan providing incentives linked to the financial results of the businesses of the Company and its subsidiaries. 
  
 For purposes of the Plan, the following terms are defined as set forth below:

  
 “Affiliate” of a Person shall mean a Person
that directly or indirectly controls, or is controlled by, or is under common control with, such Person. 
  
 “Applicable Laws” means the legal requirements relating to the administration of stock incentive plans, if any, under applicable
provisions of federal securities laws, state corporate and securities laws, the Code, the rules of any applicable stock exchange or national market system, and the rules of any foreign jurisdiction applicable to Awards granted to residents therein.

  
 “Award” means a Stock Appreciation Right,
Stock Option, Restricted Stock or Performance Unit award. 
  
 “Award Agreement” means a Restricted Stock Agreement, Option Agreement, Stock Appreciation Right Agreement or Performance Unit Agreement. An Award Agreement may include provisions included in an employment, consulting or
management agreement or other agreement providing for the performance or provision of professional services. 
  
 “Award Cycle” means the period of consecutive fiscal years or portions thereof designated by the Committee over which Performance Units
are to be earned. 
  
 “Board” means the Board of
Directors of the Company. 
  
 “Cause” means (i)
the failure of a Participant to substantially fulfill his obligations with respect to his Employment/Service, (ii) the Participant is charged with or convicted of a felony or engages in conduct that constitutes gross negligence or gross misconduct
in carrying out his duties with respect to his Employment/Service, (iii) violation by the Participant of any noncompetition, nonsolicitation or confidentiality provision contained in any agreement between the Participant and the Company or (iv) any
material act by the Participant involving dishonesty or disloyalty or any act by the Participant involving moral turpitude which adversely affects the business of the Company. 
  

 “Code” means the Internal Revenue Code of 1986, as amended from time to time, and any
successor thereto. 
  
 “Committee” means such
committee of the Board as the Board may designate for the purpose of administering the Plan. 
  
 “Common Stock” means the common stock, par value $0.01 per share, of the Company. 
  
 “Company” means National Financial Partners Corp., a Delaware corporation. 
  
 “Disability” means a grantee would qualify for benefit payments under the long-term disability policy of
the Company regardless of whether the grantee is covered by such policy or employed by the Company. If the Company or the Related Entity to which the grantee provides services does not have a long-term disability plan in place,
“Disability” means that a grantee is unable to carry out the responsibilities and functions of the position held by the grantee by reason of any medically determinable physical or mental impairment. A grantee will not be considered to have
incurred a Disability unless he or she furnishes proof of such impairment sufficient to satisfy the Committee in its discretion. 
  
 “Employee” means any person, including an officer or director, who is an employee of the Company or any Related Entity. 
  
 “Employment/Service” means, unless otherwise defined in an
applicable Award Agreement, employment, consulting or management agreement or other agreement providing for the performance or provision of professional services, employment with, or services performed as an officer, non-Employee director, Employee,
independent contractor (including, without limitation, managers, including an entity manager) or agent of or as a consultant to, the Company or any Related Entity. 
  
 “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, and any successor
thereto. 
  
 “Fair Market Value” of the Common
Stock means, as of any given date, the mean between the highest and lowest reported sales prices of the Common Stock on the New York Stock Exchange or, if not listed on such exchange, on any other national securities exchange on which the Common
Stock is listed or, if not so listed, on the NASDAQ National Market on the last preceding date on which there was a sale of Common Stock on such exchange or the NASDAQ National Market. If the Common Stock is not then listed on any exchange or the
NASDAQ National Market, the Board in good faith shall determine the Fair Market Value of the Common Stock. 
  
 “Family Member” means any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew,
mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, sister-in-law, including adoptive relationships, any person sharing the grantee’s household (other than a tenant or Employee), a trust in which these persons have more
than fifty percent of the beneficial interest, a foundation in which these persons (or the 

  

 -2- 

 
grantee) control the management of assets, and any other entity in which these persons (or the grantee) own more than fifty percent of the voting interests.

  
 “Grant Date” means the effective date of
grant of any Award as set forth in the Award Agreement. 
  
 “IPO” means the consummation of a registered underwritten public offering or offerings of Common Stock with aggregate net proceeds to the Company and any selling stockholder of at least $50 million. 
  
 “Nonqualified Stock Option” means any Stock Option granted
pursuant to this Plan. 
  
 “Option Agreement”
means an agreement setting forth the terms and conditions of an Award of Stock Options and, if applicable, Stock Appreciation Rights. 
  
 “Parent” means a “parent corporation,” whether now or hereafter existing, as defined in Section 424(e) of the
Code. 
  
 “Participant” has the meaning set forth
in Section 4. 
  
 “Performance Goals” means the
performance goals established by the Committee in connection with the grant of a Performance Unit. 
  
 “Performance Unit” means an Award granted under Section 8. 
  
 “Performance Unit Agreement” means an agreement setting forth the terms and conditions of an Award of
Performance Units. 
  
 “Person” means an
individual, corporation, partnership, limited liability company, joint venture, trust, unincorporated organization, government (or any department or agency thereof) or other entity. 
  
 “Plan” means the National Financial Partners Corp. 2000 Stock Incentive Plan, as set forth herein and as
hereinafter amended from time to time. 
  
 “Plan
Shares” has the meaning set forth in Section 11(b). 
  
 “Related Entity” means any Parent, Subsidiary and any business, corporation, limited liability company or other entity in which the Company, a Parent or a Subsidiary holds a substantial ownership interest, directly or
indirectly. 
  
 “Restricted Stock” means an Award
granted under Section 7. 
  
 “Restricted Stock
Agreement” means an agreement setting forth the terms and conditions of an Award of Restricted Stock. 
  
 “SEC” means the Securities and Exchange Commission or any successor agency. 
  

 -3- 

 “Securities Act” means the Securities Act of 1933, as amended from time to time, and any
successor thereto. 
  
 “Share” means a share of
Common Stock. 
  
 “Stock Appreciation Right”
means a right granted under Section 6. 
  
 “Stock
Appreciation Right Agreement” means an agreement setting forth the terms and conditions of an Award of Stock Appreciation Rights. 
  
 “Stock Option” means an option granted under Section 5. 
  
 “Stockholders Agreement” has the meaning as set forth in Section 11(a). 
  
 “Subsidiary” means a “subsidiary
corporation,” whether now or hereafter existing, as defined in Section 424(f) of the Code. 
  
 In addition, certain other terms used herein have definitions otherwise ascribed to them herein. 
  
 SECTION 2. Administration of the Plan 
  
 a) Plan Administrator. The Plan shall be administered by the
Committee, or, if no Committee has been designated or appointed, by the Board (in which case all references herein to the Committee shall include the Board). 
  
 b) Powers of the Committee. Subject to Applicable Laws and the provisions of the Plan (including any other powers given to the Committee
hereunder), and except as otherwise provided by the Board, the Committee shall have the authority, in its discretion, to: 
  
 i) select the Participants to whom Awards may from time to time be granted; 
  
 ii) determine whether and to what extent awards of Nonqualified Stock Options, Stock Appreciation Rights,
Restricted Stock and Performance Units or any combination thereof are to be granted hereunder; 
  
 iii) determine the number of shares of Common Stock to be covered by each Award granted hereunder; 
  
 iv) determine the terms and conditions of any Award granted
hereunder (including, but not limited to, the option price (subject to Section 5(a)), any vesting conditions, restrictions or limitations (which may be related to the performance of the Participant, the Company or any Related Entity)) and any
acceleration of vesting or waiver of forfeiture regarding any Award and the shares of Common Stock relating thereto, based on such factors as the Committee shall determine; 
  

 -4- 

 v) modify, amend or adjust the terms and conditions of any Award, at any time or from
time to time including, but not limited to, Performance Goals; 
  
 vi) determine to what extent and under what circumstances Common Stock and other amounts payable with respect to an Award shall be deferred; 
  
 vii) determine under what circumstances an Award may be settled in cash or Common Stock under Section 5(g),
6(b), 6(d)(ii) or 8(b)(v); 
  
 viii) adopt, alter
and repeal such administrative rules, guidelines and practices governing the Plan as it shall from time to time deem advisable; 
  
 ix) interpret the terms and provisions of the Plan and any Award issued under the Plan (and any agreement relating thereto); and

  
 x) otherwise supervise the administration of
the Plan. 
  
 c) Committee Procedures. The Committee may
act only by a majority of its members then in office, except that the members thereof may authorize any one or more of their number or any executive officer of the Company to execute and deliver documents on behalf of the Committee. Once appointed,
such Committee shall continue to serve in its designated capacity until otherwise directed by the Board. The Board may authorize one or more executive officers of the Company to grant Awards subject to such limitations as the Board determines from
time to time. However, grants by an executive officer shall be subject to ratification by the Board and will not be effective until the date of such ratification. 
  
 Any dispute or disagreement which may arise under, or as a result of, or in any way relate to, the interpretation,
construction or application of the Plan or an Award (or related Award Agreement) granted hereunder shall be determined by the Committee. Any determination made by the Committee pursuant to the provisions of the Plan with respect to the Plan, any
Award or Award Agreement shall be made in the sole discretion of the Committee and, with respect to an Award, at the time of the grant of the Award or, unless in contravention of any express term of the Plan, at any time thereafter. All decisions
made by the Committee shall be final and binding on all persons, including the Company, any Related Entity and the Participants. 
  
 SECTION 3. Common Stock Subject to Plan and Adjustments to Capitalization 
  

a) Stock Subject to Plan. The total number of shares of Common Stock reserved and available for grant under the Plan shall be 16 million. Shares
subject to an Award under the Plan may be authorized and unissued shares or may be treasury shares. 
  
 Any shares of Common Stock covered by an Award (or portion of an Award) which is forfeited or canceled, expires or is settled in cash, shall be deemed not
to have been issued for purposes of determining the maximum aggregate number of Plan Shares which may be issued under the Plan. Shares that actually have been issued under the Plan pursuant to an Award shall not be returned to the Plan and shall not
become available for future issuance under the 

  

 -5- 

 
Plan, except that if unvested Plan Shares are forfeited, or repurchased by the Company at their original purchase price, such Plan Shares shall become
available for future grant under the Plan. 
  
 b) Adjustments
Upon Changes in Capitalization. Subject to any required action by the stockholders of the Company, the number of shares of Common Stock covered by each outstanding Award, and the number of Shares which have been authorized for issuance under the
Plan but as to which no Awards have yet been granted or which have been returned to the Plan, the exercise or purchase price of each such outstanding Award, as well as any other terms that the Committee determines require adjustment shall be
proportionately adjusted for (i) any increase or decrease in the number of issued Shares resulting from a stock split, reverse stock split, stock dividend, combination or reclassification of the Shares, or similar transaction affecting the Shares,
(ii) any other increase or decrease in the number of issued Shares effected without receipt of consideration by the Company, or (iii) as the Committee may determine in its discretion, any other transaction with respect to Common Stock to which
Section 424(a) of the Code applies or a similar transaction; provided, however that conversion of any convertible securities of the Company shall not be deemed to have been “effected without receipt of consideration.” The
Committee shall make such adjustment and its determination shall be final, binding and conclusive. Except as the Committee determines, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any
class, shall affect, and no adjustment by reason hereof shall be made with respect to, the number or price of Shares subject to an Award. 
  
 SECTION 4. Participants 
  
 Officers, Employees, independent contractors (including, without limitation, managers, including entity managers), consultants and non-Employee directors
of the Company and/or a Related Entity who are responsible for or contribute to the management, growth and profitability of the business of the Company and/or a Related Entity shall be “Participants” eligible to be granted Awards under the
Plan. 
  
 SECTION 5. Stock Options 
  
 The Committee shall have the authority to grant any Participant Stock
Options with or without Stock Appreciation Rights. 
  
 Stock
Options shall be evidenced by Option Agreements, which shall include such terms and provisions as the Committee may determine from time to time. The grant of a Stock Option shall occur on the date the Committee by resolution selects an individual to
receive a grant of a Stock Option, determines the number of shares of Common Stock to be subject to such Stock Option to be granted to such individual and specifies the terms and provisions of the Stock Option, or on such other date as the Committee
may determine. The Company shall notify a Participant of any grant of a Stock Option, and a written Option Agreement shall be duly executed and delivered by the Company to such Participant. Subject to Section 11(a), such agreement shall become
effective upon execution by the Company and the Participant. 
  

 -6- 

 Stock Options shall be subject to the following terms and conditions and shall contain such additional
terms and conditions as the Committee shall deem desirable: 
  
 a)
Exercise Price. The price per share of Common Stock purchasable under a Stock Option shall be determined by the Committee and set forth in the Option Agreement (the “Exercise Price”). 
  
 b) Option Term. The Committee shall fix the term of each Stock
Option; provided, that, no Stock Option shall be exercisable more than ten years after the date the Stock Option is granted. Absent any such term being fixed by the Committee, pursuant to an Option Agreement or otherwise, such term shall be
ten years. 
  
 c) Exercisability. Except as
otherwise provided herein, Stock Options shall be exercisable at such time or times and subject to such terms and conditions as shall be determined by the Committee. If the Committee provides that any Stock Option is exercisable only in
installments, the Committee may at any time waive such installment exercise provisions, in whole or in part, based on such factors as the Committee may determine. In addition, the Committee may at any time accelerate the exercisability of any Stock
Option. 
  
 d) Method of Exercise. Subject to the
provisions of this Section 5, vested Stock Options may be exercised, in whole or in part, at any time during the option term by giving written notice of exercise to the Company in accordance with the terms of the Award Agreement, which terms include
specifying the number of shares of Common Stock subject to the Stock Option to be purchased. 
  
 Such notice shall be accompanied by payment in full of the Exercise Price per share by certified or bank check or such other instrument as the Company may accept. If approved by the Committee, payment, in full or in
part, may also be made in the form of unrestricted Common Stock already owned by the Participant of the same class as the Common Stock subject to the Stock Option (based on the Fair Market Value of the Common Stock on the date the Stock Option is
exercised); provided, however, that in all instances the portion of consideration equal to the par value of shares of Common Stock purchased must be paid in cash or other legal consideration permitted by the Delaware General Corporation Law.

  
 In the discretion of the Committee, after an IPO, payment for
any shares subject to a Stock Option may also be made by delivering a properly executed exercise notice to the Company, together with a copy of irrevocable instructions to a Company designated brokerage firm to effect the immediate sale of such
options and remit to the Company, out of the proceeds available on the settlement date, sufficient funds to cover the aggregate exercise price payable for the purchased shares of Common Stock as well as the amount of any federal, state, local or
foreign withholding taxes. 
  
 In addition, in the discretion of
the Committee, payment of the Exercise Price for any shares subject to a Stock Option may also be made in accordance with such other payment methods as may be permitted by the Committee in its sole discretion. 
  

 -7- 

 No shares of Common Stock shall be issued until full payment therefor has been made. Except as otherwise
provided in the Stockholders Agreement or the applicable Option Agreement, subject to a Participant’s compliance with Section 11(a) hereof, a Participant shall have all of the rights of a stockholder of the Company holding the class or series
of Common Stock that is subject to such Stock Option (including, if applicable, the right to vote the shares and the right to receive dividends and distributions), when the Participant has given written notice of exercise, has paid in full for such
shares and, if requested, has given the representations referred to in Section 11(c). 
  
 e) Nontransferability of Stock Options. No Stock Option shall be transferable by the Participant other than (i) by will or by the laws of descent and distribution or (ii) in the case of a Stock Option,
as otherwise expressly permitted under the applicable Option Agreement including, if so permitted, pursuant to a qualified domestic relations order (as defined in the Code) or pursuant to a gift to such Participant’s Family Member, whether
directly or indirectly or by means of a trust, partnership, limited liability company or otherwise. All Stock Options shall be exercisable, subject to the terms of this Plan, during the Participant’s lifetime, only by the Participant or any
person to whom such Stock Option is transferred pursuant to the preceding sentence, including such Participant’s guardian, legal representative and other transferee. The term “Participant” includes the estate of the Participant or the
legal representative of the Participant named in the Option Agreement and any person to whom an Option is otherwise transferred in accordance with this Section 5(e) by will or the laws of descent and distribution; provided, however, that
references herein to Employment/Service of a Participant or termination of Employment/Service of a Participant shall continue to refer to the Employment/Service or termination of Employment/Service of the applicable grantee of an Award hereunder.

  
 f) Termination of Employment/Service. Except as
otherwise provided by the Committee or in the applicable Option Agreement, (i) upon the Participant’s death or Disability on or after the second anniversary of the Grant Date, all Stock Options granted to the Participant shall become vested and
immediately exercisable and shall remain exercisable for a period of one year from the date of death or Disability, (ii) upon the Participant’s death or Disability prior to the second anniversary of the Grant Date, the Participant shall forfeit
unvested Stock Options as of the date of death or Disability and the Participant shall have one year to exercise vested Stock Options that are vested as of the date of death or Disability, (iii) if the Participant’s Employment/Service is
terminated with Cause, the Participant shall forfeit all Stock Options, whether vested or unvested that have not been exercised as of the date of termination and (iv) if the Participant’s Employment/Service is terminated for a reason other than
death, Disability or Cause, the Participant shall forfeit unvested Stock Options as of the date of termination and the Participant shall have thirty days to exercise vested Stock Options that are vested as of the date of termination. 
  
 A Participant’s Employment/Service shall not be considered terminated in
the case of (i) any approved leave of absence, (ii) transfers among the Company, any Related Entity, or any successor, in any capacity of Employee, director or consultant, or (iii) any change in status as long as the individual remains in the
service of the Company or a Related Entity in any capacity of Employee, director or consultant (except as otherwise provided in the Award 

  

 -8- 

 
Agreement). An approved leave of absence shall include sick leave, military leave or any other authorized personal leave. 
  
 Any vested Stock Options not exercised within the permissible period of time
shall be forfeited by the Participant. Notwithstanding any of the foregoing, the Participant shall not be permitted to exercise any Stock Option at a time beyond the initial option term. 
  
 g) Cashing Out of Stock Option. On receipt of written notice of exercise, the Committee may elect to cash out
all or any portion of the shares of Common Stock for which a Stock Option is being exercised by paying the Participant an amount, in cash, equal to the excess of the Fair Market Value of one share of Common Stock over the Exercise Price per share
times the number of shares of Common Stock for which the Option is being exercised on the effective date of such cash out. 
  
 SECTION 6. Stock Appreciation Rights 
  
 a) Grant and Exercise. Stock Appreciation Rights may be granted alone or in conjunction with all or part of a Stock Option granted under the
Plan and may be granted either at or after the time of grant of such Stock Option. A Stock Appreciation Right shall terminate and no longer be exercisable upon the termination or exercise of the related Stock Option. The terms and conditions of a
Stock Appreciation Right shall be set forth in the Option Agreement for the related Stock Option or an amendment thereto. 
  
 b) Freestanding Stock Appreciation Rights. A Stock Appreciation Right granted without relationship to a Stock Option, pursuant to Section
6(a), shall be exercisable as determined by the Committee, but in no event after ten years from the date of grant. Any such Award shall be in such form and shall have such terms and conditions as the Committee may determine; provided that,
the base price of a freestanding Stock Appreciation Right shall be determined by the Committee in its sole discretion. A freestanding Stock Appreciation Right shall entitle the holder, upon receipt of such right, to an amount, in cash, shares of
Common Stock or both, with the Committee having the right to determine the form of payment, determined by multiplying (i) the excess of the Fair Market Value of a share of Common Stock on the date of exercise of the Stock Appreciation Right over the
base price of the Stock Appreciation Right, by (ii) the number of shares of Common Stock as to which such Stock Appreciation Right shall have been exercised. A freestanding Stock Appreciation Right may be exercised by giving written notice of
exercise to the Company or its designated agent specifying the number of shares of Common Stock as to which such Stock Appreciation Right is being exercised. Except as otherwise provided by the Committee or as set forth in the Participant’s
Stock Appreciation Right Agreement, upon the Participant’s death or when the Participant’s Employment/Service is terminated for any reason, the Participant shall forfeit all freestanding Stock Appreciation Rights, whether vested or
unvested. Subject to the provisions of the Plan and the Stock Appreciation Right Agreement pursuant to which an award is granted, freestanding Stock Appreciation Rights may not be sold, assigned, transferred, pledged or otherwise encumbered.

  

 -9- 

 c) Tandem Stock Appreciation Rights. A Stock Appreciation Right may be exercised by a
Participant in accordance with Section 6(d) by surrendering the applicable portion of the related Stock Option in accordance with procedures established by the Committee. Upon such exercise and surrender, the Participant shall be entitled to receive
an amount determined in the manner prescribed in Section 6(d). Stock Options, which have been so surrendered, shall no longer be exercisable to the extent the related Stock Appreciation Rights have been exercised. A Stock Appreciation Right shall
terminate and no longer be exercisable upon the termination or exercise of the related Stock Option. 
  
 d) Tandem Stock Appreciation Rights Terms and Conditions. Stock Appreciation Rights shall be subject to such terms and conditions as shall
be determined by the Committee, including the following: 
  
 (i) Stock Appreciation Rights shall be exercisable only at such time or times and to the extent that the Stock Options to which they relate are exercisable in accordance with the provisions of Section 5 and this
Section 6; 
  
 (ii) upon the exercise of a Stock
Appreciation Right, a Participant shall be entitled to receive an amount equal to the product of (a) the excess of the Fair Market Value of one share of Common Stock on the date of exercise over the Exercise Price per share specified in the related
Stock Option and (b) the number of shares in respect of which the Stock Appreciation Right shall have been exercised. Such amount may be paid in cash, shares of Common Stock or both, which form shall solely be determined at the discretion of the
Committee; 
  
 (iii) Stock Appreciation Rights
shall be transferable only with the related Stock Option in accordance with Section 5(e); and 
  
 (iv) upon the exercise of a Stock Appreciation Right (other than an exercise for cash), the Stock Option or part thereof to which such
Stock Appreciation Right is related shall be deemed to have been exercised for the purpose of the limitation set forth in Section 3 on the total number of shares of Common Stock to be issued under the Plan, but only to the extent of the number of
shares covered by the Stock Appreciation Right at the time of exercise. 
  
 SECTION 7. Restricted Stock 
  
 The Committee
shall determine the Participants to whom and the time or times at which grants of Restricted Stock will be awarded, the number of shares to be awarded to any Participant, the conditions for vesting, the time or times within which such Awards may be
subject to forfeiture and restrictions on transfer and any other terms and conditions of the Awards (including provisions (i) relating to placing legends on certificates representing shares of Restricted Stock, (ii) permitting the Company to require
that shares of Restricted Stock be held in custody by the Company with a stock power from the owner thereof until restrictions lapse and (iii) relating to any rights to purchase the Restricted Stock on the part of the Company and any Related
Entity), in addition to those contained in the Stockholders Agreement. The terms and 

  

 -10- 

 
conditions of Restricted Stock Awards shall be set forth in a Restricted Stock Agreement, which shall include such terms and provisions as the Committee may
determine from time to time. Except as provided in this Section 7, the Restricted Stock Agreement, the Stockholders Agreement and any other relevant agreements, the Participant shall have, with respect to the shares of Restricted Stock, all of the
rights of a stockholder of the Company holding the class or series of Common Stock that is the subject of the Restricted Stock Award, including, if applicable, the right to vote the shares and, subject to the following sentence, the right to receive
any cash dividends or distributions (but, subject to the third paragraph of Section 3, not the right to receive non-cash dividends or distributions). If so determined by the Committee in the applicable Restricted Stock Agreement, cash dividends and
distributions on the class or series of Common Stock that is the subject of the Restricted Stock Award shall be automatically deferred and reinvested in additional Restricted Stock, held subject to the vesting of the underlying Restricted Stock, or
held subject to meeting conditions applicable only to dividends and distributions. 
  
 SECTION 8. Performance Units 
  
 a)
Administration. Performance Units may be awarded either alone or in addition to other Awards granted under the Plan. The Committee shall determine the Participants to whom and the time or times at which Performance Units shall be
awarded, the number of Performance Units to be awarded to any Participant, the duration of the Award Cycle and any other terms and conditions of the Award, in addition to those contained in Section 8(b). 
  
 b) Terms and Conditions. Performance Unit Awards shall be
subject to the following terms and conditions: 
  
 (i) The Committee may, prior to or at the time of the grant, condition the settlement of Performance Units upon the attainment of Performance Goals. The Committee may also condition the settlement thereof upon the continued service of the
Participant. The provisions of such Awards (including without limitation any applicable Performance Goals) need not be the same with respect to each recipient. Subject to the provisions of the Plan and the Performance Unit Agreement referred to in
Section 8(b)(vi), Performance Units may not be sold, assigned, transferred, pledged or otherwise encumbered during the Award Cycle. 
  
 (ii) Except to the extent otherwise provided in the applicable Performance Unit Agreement or Section 8(b)(iii), upon a Participant’s
termination of Employment/Service for any reason during the Award Cycle or before any applicable Performance Goals are satisfied, all rights to receive cash or stock in settlement of the Performance Units shall be forfeited by the Participant.

  
 (iii) In the event that a Participant’s
Employment/Service is terminated (other than for Cause, as determined by the Committee), or in the event of the death of a Participant, the Committee shall have the discretion to waive, in whole or in part, any or all remaining payment limitations
with respect to any or all of such Participant’s Performance Units. 
  

 -11- 

 (iv) A Participant may elect to further defer receipt of cash or shares in settlement of
Performance Units for a specified period or until a specified event, subject in each case to the Committee’s approval and to such terms as are determined by the Committee (the “Elective Deferral Period”). Subject to any exceptions
adopted by the Committee, such election must generally be made prior to commencement of the Award Cycle for the Performance Units in question. 
  
 (v) At the expiration of the Award Cycle, the Committee shall evaluate the Company’s performance in light of any Performance Goals
for such Award, and shall determine the number of Performance Units granted to the Participant which have been earned, and the Committee shall then cause to be delivered (A) a number of shares of Common Stock equal to the number of Performance Units
determined by the Committee to have been earned, or (B) cash equal to the Fair Market Value of such number of shares of Common Stock to the Participant, as the Committee shall elect (subject to any deferral pursuant to Section 8(b)(iv)). 

 
 (vi) Each Award shall be confirmed by, and be subject to,
the terms of a Performance Unit Agreement. 
  
 SECTION 9. Term, Amendment and
Termination 
  
 The Plan will continue in effect for a term
of ten years after the effective date of the Plan unless sooner terminated. Awards outstanding as of such date shall not be affected or impaired by the termination of the Plan. 
  
 The Board may amend, alter or discontinue the Plan, prospectively or retroactively, but no amendment, alteration or
discontinuation shall be made which would materially impair the rights of any Participant under an Award theretofore granted without the Participant’s consent. 
  
 The Committee may amend the terms of any Award theretofore granted, prospectively or retroactively, but no such amendment
shall be made which would materially impair the rights of any Participant thereunder without the Participant’s consent. 
  
 SECTION 10. Unfunded Status of Plan 
  
 It is presently intended that the Plan constitute an “unfunded” plan for incentive and deferred compensation. The Committee may authorize the
creation of trusts or other arrangements to meet the obligations created under the Plan to deliver Common Stock or make payments; provided, however, that unless the Committee otherwise determines, the existence of such trusts or other
arrangements is consistent with the “unfunded” status of the Plan. 
  
 SECTION 11. General Provisions 
  
 a)
Stockholders Agreement. Notwithstanding anything in this Plan to the contrary, unless the Committee determines otherwise, it shall be a condition to receiving any Award under the Plan or transferring any Option in accordance with
Section 5(e) or any other 

  

 -12- 

 
transfer permitted under the terms of an Award Agreement or otherwise, that a Participant (or transferee in the case of such transfer) shall become a party
to the Stockholders Agreement, dated as of October 27, 2000, among the Company and certain stockholders of the Company, as such agreement may be amended and/or restated from time to time (the “Stockholders Agreement”), and such Participant
(or transferee in the case of such transfer) shall become a “Management Investor” thereunder (or such transferee shall become a “Permitted Transferee” of a “Management Investor” thereunder). 
  
 b) Awards and Certificates. Shares of Restricted Stock and
shares of Common Stock issuable upon the exercise of a Stock Option, Stock Appreciation Right or Performance Unit (together, “Plan Shares”) shall be evidenced in such manner as the Committee may deem appropriate, including book-entry
registration or issuance of one or more stock certificates. Any certificate issued in respect of Plan Shares shall be registered in the name of such Participant and shall bear appropriate legends referring to the terms, conditions, and restrictions
applicable to such Award, substantially in the following form: 
  
 “The transferability of this certificate and the shares of stock represented hereby are subject to the terms, conditions and restrictions (including forfeiture) of the National Financial Partners Corp. 2000 Stock Incentive Plan and a
Restricted Stock Agreement and/or an Option Agreement, as the case may be, between the issuer and the registered holder hereof. Copies of such Plan and Agreement are on file at the offices of National Financial Partners Corp., 1301 Avenue of the
Americas, 38th Floor, New York, New York 10019.” 
  
 “The securities represented by this certificate have not been registered under the Securities Act of 1933, as amended, or under the securities laws of any state, and may not be sold or otherwise disposed of except pursuant to an
effective registration statement under said Act and applicable state securities laws or an applicable exemption to the registration requirements of such Act and laws.” 
  
 Such Plan Shares may bear other legends to the extent the Committee or the Board determines it to be necessary or appropriate, including any
required by the Stockholders Agreement or pursuant to any applicable Award Agreement. 
  
 The Committee may require that any certificates evidencing Plan Shares be held in custody by the Company until the restrictions thereon shall have lapsed and that the Participant deliver a stock power, endorsed in
blank, relating to the Plan Shares. 
  
 c) Representations
and Warranties. The Committee may require each person purchasing or receiving Plan Shares to (i) represent to and agree with the Company in writing that such person is acquiring the shares without a view to the distribution thereof and (ii)
make any other representations and warranties that the Committee deems appropriate. 
  

 -13- 

 d) Additional Compensation. Nothing contained in the Plan shall prevent the Company or a
Related Entity from adopting other or additional compensation arrangements for its Employees. 
  
 e) No Right of Employment/Service. Adoption of the Plan or grant of any Award shall not confer upon any officer, Employee, independent contractor (including, without limitation, a manager, including an
entity manager), consultant, non-Employee director or agent any right to continued Employment/Service, nor shall it interfere in any way with the right of the Company or any Related Entity thereof to terminate the Employment/Service of any officer,
Employee, independent contractor (including, without limitation, a manager, including an entity manager), consultant, non-Employee director or agent at any time. 
  
 f) Withholding Taxes. No later than the date as of which an amount first becomes includible in the gross
income of a Participant for federal income tax purposes with respect to any Award under the Plan, such Participant shall pay to the Company or, if appropriate, any Related Entity, or make arrangements satisfactory to the Committee regarding the
payment of, any federal, state, local or foreign taxes of any kind required by law to be withheld with respect to such amount. If approved by the Committee, withholding obligations may be settled with Common Stock, including Common Stock that is
part of the Award that gives rise to the withholding requirement. The obligations of the Company under the Plan shall be conditional on such payment or arrangements, and the Company and any Related Entity shall, to the extent permitted by law, have
the right to deduct any such taxes from any payment otherwise due to the Participant. The Committee may establish such procedures, as it deems appropriate, including making irrevocable elections, for the settlement of withholding obligations with
Common Stock. 
  
 g) Beneficiaries. The Committee
shall establish such procedures as it deems appropriate for a Participant to designate a beneficiary to whom any amounts payable in the event of the Participant’s death are to be paid or by whom any rights of the Participant, after the
Participant’s death, may be exercised. 
  
 h) Governing
Law. Except to the extent that provisions of the Plan are governed by applicable provisions of the Code or other substantive provisions of Federal law, the Plan and all Awards made and actions taken thereunder shall be governed by and
construed and enforced in accordance with the laws of the State of Delaware without regard to the principles of conflicts of law thereof. 
  
 i) Compliance with Laws. If any Applicable Law shall require the Company or a Participant seeking to exercise Stock Options or Stock
Appreciation Rights to take any action with respect to the Plan Shares to be issued upon the exercise of Stock Options or Stock Appreciation Rights then the date upon which the Company shall issue or cause to be issued the certificate or
certificates for the Plan Shares shall be postponed until full compliance has been made with all such requirements of law or regulation; provided, that the Company shall use its reasonable efforts to take all necessary action to comply with
such requirements of law or regulation. Moreover, in the event that the Company shall determine that, in compliance with the Securities Act or other applicable statutes or regulations, it is necessary to register any of the Plan 

  

 -14- 

 
Shares with respect to which an exercise of a Stock Option or Stock Appreciation Right has been made, or to qualify any such Plan Shares for exemption from
any of the requirements of the Securities Act or any other applicable statute or regulation, no Stock Options or Stock Appreciation Rights may be exercised and no Plan Shares shall be issued to the exercising Participant until the required action
has been completed; provided, that the Company shall use its reasonable efforts to take all necessary action to comply with such requirements of law or regulation. Notwithstanding anything to the contrary contained herein, neither the Board
nor the members of the Committee owes a fiduciary duty to any Participant in his or her capacity as such. 
  
 SECTION 12. Effective Date of Plan 
  
 The Plan shall be effective as of the date it is approved by the Board. 
  

 -15-

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