Document:

exv10w46

Exhibit 10.46

Confidential Treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the
confidentiality request. Omissions are designated as “***”. A complete version of this exhibit has been filed separately with the Securities
and Exchange Commission.

FOREX INTRODUCING BROKER AGREEMENT

BETWEEN

GAIN CAPITAL GROUP, INC.

AND

TRADESTATION SECURITIES, INC.

 

 

FOREX

INTRODUCING BROKER AGREEMENT

     This FOREX INTRODUCING BROKER AGREEMENT (“Agreement”) is made this
20th day of April, 2005 by and between GAIN Capital Group, Inc., a Delaware corporation
(“GAIN”), and TradeStation Securities, Inc., a Florida corporation (“Broker”).

RECITALS

	A.	 	Broker wishes to introduce Broker’s customers (“Customers”) on a fully-disclosed basis
to GAIN, including Customers that may be referred to Broker by GAIN (as described
later in this Agreement), for the purpose of enabling the Customers to enter into principal
foreign exchange (“forex”) transactions with GAIN.
	 
	B.	 	The respective roles of GAIN and Broker with respect to forex accounts of Customers,
generally speaking, shall be as follows. Broker’s role is to acquire Customers, including
Customers that may be referred to Broker by GAIN (as described later in this
Agreement), for the forex services GAIN will provide, using whatever marketing, sales
and account-opening methods, techniques, media and efforts that Broker, in its sole and
absolute discretion, deems appropriate. Broker shall also provide customer and technical
support services to the Customers, and otherwise own and maintain the customer
relationship with Customers and all good will associated therewith (GAIN will, at no
additional cost or expense to Broker, provide training and remote services directly to
Broker to support these services as and when reasonably requested by Broker on a day to-
day basis). GAIN will provide trade desk and technical support services to Broker’s
trade desk and client services personnel when they call with issues relating to orders,
deals and other issues that may be raised by Customers with Broker on a daily basis.
GAIN shall not deal directly with Customers. GAIN’s role is to act as a
principal/counterparty in forex deals with Customers and to provide all order placement,
execution, clearing, settlement, processing, reporting and other deal services and
functions relating to forex transactions of and with Customers. Broker is not the only
introducing broker from whom GAIN or its affiliates may be introduced forex customers or
business, and GAIN is not or wil1not necessarily be the sole forex principal or clearing firm to or
with whom Broker or its affiliates may introduce or transact forex business (i.e., neither party is
granting or agreeing to an “exclusive” arrangement); provided, however, other than pursuant to any
agreements or arrangements Broker has in

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	 	 	place on the date of this Agreement, Broker shall, as long as this Agreement is in effect, not
use any forex principal other than GAIN during 2005.
	 
	C.	 	Forex orders will be made by Customers by seamlessly accessing GAIN’s elec1ronic
forex trading system via, as the complete front-end, Broker’s TradeStation trading
platform. In order to accomplish this, each party, at its own expense, shall, in
cooperation with the other party, develop and complete such application program
interfaces and other technical compatibilities as required to be able to provide to
Customers, as promptly as possible, using a FIX server engine framework, the
TradeStation trading platform for the design, back-testing, optimization,
analysis,
	 
	 	 	automation and placement of forex trading strategies, including manual and automated
trade execution seamlessly through GAIN’s electronic forex trading system, together
with real-time access to Customers’ positions and other trading and account information
(collectively, the “Compatibility”).

REPRESENTATIONS, WARRANTIES, COVENANTS AND UNDERTAKINGS

1.0 AGREEMENT

     Subject to the terms of this Agreement, GAIN shall deal as a principal/counterparty in
forex transactions with Customers of Broker. Each party represents, warrants and covenants to
the other that the Recitals above are true and accurate, and that the Recitals are hereby restated
and incorporated by reference in this Section I as if fully herein set forth, and constitute a part
of
this Agreement.

2.0 REPRESENTATIONS, WARRANTIES AND COVENANTS

     2.1 Representations, Warranties and Covenants. Each party represents, warrants and
covenants to the other as follows:

     2.1.1 Organization. It is duly organized, validly existing and in good standing under
the laws of the jurisdiction of its formation. It is authorized to do business in each jurisdiction
in
which it is required to be authorized to conduct its business, except where the failure to qualify
would not have a material adverse effect on Broker’s or GAIN’s business.

     2.1.2 Registration. It has obtained all registrations, licenses or
memberships required
by applicable governmental, quasi-governmental, agency or self-regulatory laws, rules, or
regulations as necessary for it to enter into and carry out its obligations and activities under
and
contemplated by this. Agreement.

     2.1.3 Authority to Enter Agreement. It has all requisite power and authority, whether
arising under applicable law or the applicable rules and regulations of any regulatory or
self-regulatory agency or organization to which it is subject, to enter into this Agreement and to
perform its obligations and contemplated activities in accordance with the terms of this
Agreement. This Agreement has been duly and validly executed and delivered by it and
constitutes its legal, valid and binding obligations, enforceable against it in accordance with the

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terms
hereof.

     2.1.4. Material Compliance with Rules and Regulations. Such party and its affiliates
and, to such party’s knowledge, each of their respective employees, are in material compliance
with, and during the term of this Agreement shall remain in material compliance with, the
registration, qualification, customer protection, and all other rules and regulations of every
governmental, quasi-governmental, agency and self-regulatory authority to which it or any of its
employees is subject (all of the laws, rules and regulations referred to in Sections 2.1.2, 2.1.3
and
this 2.1.4, as well as all other laws, rules or regulations applicable to either party’s business
or
the transactions or activities contemplated by this Agreement, are collectively referred to as
“Rules”); provided, however, such party shall not be in breach of this representation and
warranty if it or its affiliate (as applicable) remedies any material violation that occurs within
a reasonable time following notice or discovery thereof.

     2.1.5 No Pending Action, Suit. Investigation, or Inquiry. Every material action, suit,
investigation, inquiry, or proceeding (formal or informal) pending or threatened against or
affecting it, any of its affiliates, or any officer, director, or principal of it, or their
respective
property or assets, by or before any court or other tribunal, any arbitrator, any governmental
authority, or any agency or self-regulatory organization of which any of them is a member, is
disclosed in its publicly available filings, and it shall amend or supplement such filings as
required by applicable law in the event a material disclosable event occurs. If it is not obligated
by law to publicly disclose all material litigation or claims against it, it shall promptly notify
the
other party of any such material action, suit, investigation, inquiry or proceeding that arises.

     2.1.6 Independent Contractor. Each party is an independent contractor and not an agent
or employee of the other. Neither will hold itself out as an agent of the other in any capacity.
Each party acknowledges that the other does not control the business or operations of such party.
Neither party will use the name of the oilier in answering its telephone or in any other way hold
itself out to be associated with the oilier, other than the relationship of introducing broker to
principal. Except as otherwise specifically set forth in this Agreement, neither shall have any
responsibility whatsoever for the expenses incurred by the other in connection with the operation
of the other’s business.

     2.1.7 Forex Data Services. GAIN shall provide to Broker, and hereby grants to Broker,
a royalty-free (subject only to the provisions of Section 14.1, if those provisions become
applicable) license to use and provide to Customers and other end users forex market data (which
shall be provided by GAIN as part of the Compatibility) on a streaming real-time, delayed, daily
and historical basis. This forex market data shall be the same data GAIN currently uses for its
proprietary and highest-end forex trading operations, as same may be enhanced or improved
from time to time, and shall be of the type and quality used by active or institutional forex
traders
to chart and analyze the forex markets in real-time and to spot trade. Broker’s license to use and
provide the forex data includes the right to use such data internally for any purpose related to
Broker’s or its affiliates’ businesses, and to redistribute such data to Customers and other end
users of Broker and its affiliates for their personal use and/or to assist them in
their forex trading.
Historical data acquired during the term of this Agreement may continue to be used and provided
royalty-free perpetually following any expiration or termination of this Agreement, but real-time,

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delayed and daily market data services shall not be received by Broker following the effective
date: of termination of this Agreement except pursuant to Section 14.1, if applicable, or unless
Broker and GAIN enter into an independent redistribution agreement at that time. In no event
Shall Customers or other end users be given the right to redistribute or re-vend the data service
to others. GAIN represents, warrants and covenants to Broker that it has the full power, right and
authority to grant to Broker the license to use the forex data as described above. At no cost or
expense to Broker, and as part of the Compatibility, GAIN shall provide such application
programming interfaces and other technical information and assistance as Broker reasonably
requires or requests to assist Broker in integrating the forex data with the TradeStation
platform
and to enable Broker to redistribute the data to Customers and other end users as part of; or in
conjunction with, Broker’s or its affiliates’ tec1mology or other services. GAIN’s obligation to
provide ongoing assistance shall terminate March 31, 2008, even though Broker’s right to use
and redistribute historical data continues perpetually.

3.0 CUSTOMER ACCOUNTS

     3.1 Acceptance of New Accounts. Broker shall be responsible for opening and
approving new accounts for forex trading with or through GAIN, subject to GAIN’s rejection
rights described below.

     3.1.1 Rejection of Accounts. GAIN reserves the right to reject any account which
Broker may forward to GAIN as a potential new account provided there is a reasonable basis for
such rejection. GAIN also reserves the right to terminate any account previously accepted by it
as a new account provided there is a reasonable basis for such termination. GAIN must notify
Broker directly of such decision so that Broker may inform the Customer or Customer prospect
of the decision.

     3.1.2 Customer Information. At the time of the opening of any new account, Broker
shall obtain information from the Customer sufficient to satisfy itself as to the identity of the
Customer and the source of the Customer’s funds for the purpose of complying with the
applicable requirements of any laws regarding anti-money laundering.

     3.2 Maintenance of Account Information. Broker shall ascertain the essential facts
relative to any Customer account, including the genuineness of all documents and signatures
provided by Customers for each account. Broker shall also have the responsibility, to the extent
required by Rules, to make full, fair and complete disclosure of the risks, terms and conditions of
forex trading to the Customers. GAIN may rely without inquiry on the validity of all Customer
information furnished to it by Broker.

4.0 SUPERVISION OF ORDERS AND ACCOUNTS

     4.1 Soliciting and Accepting Orders. Broker shall make any disclosures to, and
obtain any agreements from, Customers required by applicable Rules, including, without
limitation, any disclosures or agreements reasonably required by GAIN to be given to, or
obtained from, Customers (provided that GAIN timely provides the form and content of such
required agreements or disclosures to Broker). Broker may accept orders for forex transactions

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(via its trade desk or via the TradeStation platform) and will transmit such orders to
GAIN orally
or via the Compatibility. Broker shall obtain all essential facts relating to each Customer, each
account, each order that is orally transmitted by a Customer to Broker’s trade desk, and each
person holding a power of attorney over any account, in order to assess authenticity. Broker will
not open or maintain accounts for persons who it knows to be minors or otherwise legally
incompetent.

     4.2 Right to Refuse Orders. GAIN may, if reasonable under the circumstances, but
solely at its own risk and expense, refuse to accept and deal with any order, discontinue
accepting orders from any Customer, and impose limits on the size of any Customer account and the
positions carried therein.

     4.3 Preparation and Transmission of Confirmations and Statements. GAIN, at its
expense, shall prepare and deliver, in accordance with forex industry standards, confirmations
and periodic summary statements on an electronic basis to Customers (and/or on a hard·-copy
mailed basis if GAIN lacks the right or authority to give solely electronic statements) and
Broker. All confirmations and statements shall identify GAIN as dealer and Broker as referring
agent but otherwise shall, in look and feel and branding, resemble Broker’s statements to its
account holders.

     4.4 Examination and Notification of Errors. Subsequent to the close of trading on
each trading day, GAIN will make available to Broker on an electronic basis a daily preliminary
repollt recapping the day’s trades made with Customers. In addition, GAIN shall make available
on an electronic basis daily equity and margin runs to Broker reporting all Customers’ trades for
the previous trading day as well as all open or rollover positions for Customers. Broker has the
obligation to examine each of the aforementioned reports and thereby check trades Broker has
executed for its Customers’ accounts via Broker’s trade desk by orally transmitting order
information to GAIN (“Orally-transmitted Trades”). Broker will use reasonable efforts to notify
GAIN of any patent error regarding Orally-transmitted Trades claimed by Broker in any account
prior to 9:00 AM (eastern time) on the trading day subsequent to the execution of the transaction
in dispute, provided that Broker is given sufficient and timely information to identify the error.
Solely GAIN, and not Broker, is responsible for any and all trading or reporting errors for trades
executed by GAIN or Customer.

     4.5 Responsibility for Errors in Execution. As between Broker and GAIN, GAIN
shall be responsible for all Customer orders and deals and for any errors in the recording,
transmission, processing, execution, clearing, settlement or reporting of such orders or deals.
Broker shall be responsible to transmit to GAIN Orally-transmitted Trade orders it receives from
Customers.

5.0 MARGIN AND DEFICITS

     5.1 Margin Requirements. The initial margin for Customer accounts shall be ***
and
a Customer account that falls below *** of initial margin shall be automatically frozen and
liquidated by GAIN using its auto-liquidation technology to the extent necessary to reestablish
the maintenance margin requirement or otherwise eliminate or reduce debit balances. Prior to a

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Customer account falling below the *** maintenance level, Broker may, in its sole and absolute
discretion, impose such margin calls and/or requirements and/or limitations on account trading as
it deems appropriate.. Without limitation of the foregoing, in the event of a margin call that is
not met, either Broker or GAIN, in its sole discretion, may liquidate any account in whole or in
part. In addition, each of Broker and GAIN is authorized to take whatever action it reasonably
deems necessary to protect itself from risk. Either Broker or GAIN may, whenever in its sole and
absolute discretion considers it necessary, liquidate the positions in any Customer’s account.
Either’s compliance with a request by the other to withhold action shall not be deemed a waiver by
e:ither of any of its rights under this Agreement. GAIN agrees to be responsible for, and to hold
Broker harmless from any loss or expense incurred by Broker as a result of, a margin call or an
automatic freezing or liquidation of a Customer account by GAIN, or an attempted or failed
freezing, liquidation or collection by GAIN, or other actions taken by GAIN based upon its risk
management decisions for margin account activity.

     5.2 Deficits. GAIN assumes full risk for all obligations of the Customers, including
in the event any Customer’s account is in a deficit status, 24 hours a day, 7 days a week, 52
weeks a year. GAIN may not withhold compensation or other amounts payable to Broker as a
result of Customer account deficits or a Customer’s refusal, failure or inability to pay or meet
any obligation.

     5.3 Charging of Interest. Interest with respect to deficit balances in Customers’
accounts shall be charged at *** over the announced prime rate of JPMorgan Chase.

6.0 AUDIO TAPING OF TELEPHONE CONVERSATIONS

     Each party understands that for quality control; dispute resolution or other business
purposes, the other party may record some or all telephone conversations between them. Each
party hereby consents to such recording and will inform Customers, employees, representatives
and agents of this practice.

7.0 COMPENSATION AND CHARGES

     During the term of this Agreement, GAIN shall compensate Broker as set forth in Exhibit
A hereto and as may from time to time be mutually agreed upon in writing. Broker may, in its
sole discretion, at any time and from time to time, require Customers to be charged and to pay
commissions and other fees and expenses, including, but not limited to, administrative
and
inactive account fees and charges.

8.0 FUNDS AND SECURITIES

GAIN is not responsible for any funds or securities delivered by a Customer to Broker
until those funds have been delivered to GAIN or GAIN’s bank or other custodial agent ill clear
funds. Any funds or securities of a Customer received by GAIN shall not be required to be
segregated by GAIN from the assets of other Customers or GAIN’s assets and revenues as a
forex principal/counterparty, except as otherwise required by applicable Rules or best practices
in the industry, and provided that GAIN remains a single-purpose entity that engages solely in

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the business of acting as a principal/counterparty for forex trading (and related and incidental
activities and services) and that, in all events, Customer funds shall not at any time be
commingled with funds of any GAIN affiliates or other persons or entities. GAIN fully assumes
all risks and liabilities related to decisions it makes relating to the handling and segregation of
Customer assets, and those decisions shall never violate, or cause violation of, any Rules.

9.0 FURTHER OBLIGATIONS AND RESPONSIBILITIES OF PARTIES

9.1 Disciplinary Action,’ Suspension, or Restriction. If either party or any of such
party’s affiliates, or any officer, director or principal of such party or its affiliates, becomes
subject to investigation, disciplinary action, suspension, or restriction by a governmental agency,
exchange, or regulatory or self-regulatory organization having jurisdiction over such person or
entity or its business, that could reasonably be expected to affect the transactions contemplated
by this Agreement, such party shall notify the other promptly, orally and in writing, and provide
the other with a copy of any document requests, subpoenas and decisions relating to such action,
suspension or restriction. The other party may take any action it reasonably deems to be
necessary: (i) to assure that such party will continue to comply with all applicable legal,
regulatory, and self-regulatory requirements, notwithstanding such action, suspension, or
restriction; and (ii) to comply with any requests, directives, or demands made upon the other
party by any such governmental agency, exchange, or regulatory or self-regulatory organization.
9.2 Privacy of Customer Financial Information. GAIN agrees that it shall not take
any action inconsistent with Broker’s published policies relating to the privacy of Customer
identity, contact and financial information. In no event, except as specifically required by Rules,
shall GAIN disclose to anyone any facts, metrics or statistics relating to Customers’ trading
activity or accounts, whether individually or as a group.

10.0 ACCESS TO INFORMATION; FINANCIAL REPORTS.

     10.1 Inspection. Each party shall make its books and records relating to forex trading
by Customers available for reasonable inspection at all times by duly authorized
representatives
of the other party.

     10.2 Customer Information. Each party shall, upon request, provide the other with any
information in its possession with respect to any Customer relating to forex trading.

11.0 DAMAGES; INDEMNIFICATION

     11.1 Limitations on Damages. Neither party shall be liable for special, indirect,
incidental, consequential or punitive damages, whether such damages arc incurred or
experienced as a result of entering into or relying on this Agreement or otherwise, even if each
party has been advised of the possibility of such damages. Broker and GAIN each agree not to
make any claim for punitive damages against the other. Each party acknowledges and agrees
that the parties’ respective economic positions under this Agreement reflect and take into
account an allocation of risks including, but not limited to, the foregoing limitation of liability

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and the indemnity obligations set forth below. A modification of the allocation of risks set forth
in this Agreement would affect each party’s bargain and, in consideration thereof, each party
agrees to such allocation of risks, including the indemnification obligations set forth below.

     11.2 GAIN Indemnification. In addition to any other obligations it may possess under
other provisions of this Agreement, GAIN shall indemnify, defend, and hold harmless Broker,
and its affiliates and officers and directors, from and against all claims, demands, proceedings,
suits, actions, liabilities, expenses, and reasonable attorneys’ fees (including fees and costs
incurred in enforcing Broker’s right to indemnification), and costs in connection therewith,
arising out of any negligent, dishonest, fraudulent or criminal act, error or omission on the part
of GAIN or any of its officers, agents or employees with respect to the services provided by GAIN,
or the transactions contemplated to be performed by GAIN, under this Agreement, or GAIN’s business,
or which arise out of any event or occurrence for which GAIN has agreed to assume responsibility,
or which arise out of or relate to forex orders and deals, and/or the execution, clearing,
settlement or reporting thereof. This paragraph shall be read together with Section 11.3 below, so
that each party’s indemnification obligations are proportionate to its fault.

     11.3 Broker Indemnification. In addition to any other obligation it may possess under
other provisions of the Agreement, Broker shall indemnify, defend, and hold ham1less GAIN,
and its affiliates any officers and directors, from and against all claims, demands, proceedings,
suits” actions, liabilities, expenses, and reasonable attorneys’ fees (including fees and costs
incurred in enforcing GAIN’s right to indemnification), and costs in connection therewith,
arising out of any negligent, dishonest, fraudulent, or criminal act, error or omission on the part
of Broker or any of its officers, agents or employees with respect to Broker’s business, Broker’s
dealings with Customers, or with respect to the transactions contemplated to be performed by
Broker under this Agreement, or which arise out of any event or occurrence for which Broker
has agreed to assume responsibility. This paragraph shall be read together with Section 11.2
above, so that each party’s indemnification obligations are proportionate to its fault.

     11.4 Indemnified Third-party’ Claims. Each party agrees to give the other prompt
written notice of any claim that might give rise to the other party’s indemnification obligations
under this Agreement, stating the nature and basis of the claim, and the actual or estimated
amount thereof (if it can reasonably be estimated), but the failure to give such notice shall not
affect the rights of the indemnified party except to the extent the indemnified party suffers
actual
damage or harm as a result of the failure to give notice or the timing thereof. The indemnifying
party shall have the right, at its sole cost and expense, to defend such claim in its name and the
name of the indemnified party by counsel of the indemnifying party’s choosing that is reasonably
acceptable to the indemnified party. If there is a conflict that arises from the claim (other than
a dispute relating to the right to indemnification or proportionate fault, which each party may
pursue and defend through counsel of its own choosing and at its own expense) that reasonably
requires GAIN and Broker to be represented by separate counsel, then the indemnifying party shall
also be required to pay the reasonable fees and expenses of the indemnified party’s counsel,
subject to its right to approve such counsel (which shall not be unreasonably withheld). Each party
agrees to render to the other such assistance as may be reasonably required to best ensure the
proper and adequate defense of the indemnified claim. The indemnified party may not settle any
claim without the consent of the indemnifying party; however, the indemnifying party may

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settle any claim, if, as and when it so decides, following notice to the indemnified party
describing the settlement, provided that it reasonably demonstrates to the indemnified party, if
requested, that it has the financial resources to pay the settlement in accordance with its terms.

12.0 THIRD-PARTY RIGHTS

     This Agreement is not intended to grant any third party any rights, whether as a third party
beneficiary or otherwise, including, but not limited to, any Customers.

13.0 COMMUNICATIONS WITH THE PUBLIC

     13.1 Advertising. Neither GAIN nor Broker shall utilize the name of the other in any
Way without the other’s prior written consent, which shall not be unreasonably withheld or
delayed, except to disclose the relationship between the parties. Neither party shall employ the
other’s name in such a manner as to create the impression that the relationship between them is
anything other than that of introducing broker and principal. Solely Broker is authorized to
market and advertise the forex services contemplated by this Agreement, which shall be in the
name and under the brands of solely Broker, and Broker may market and offer the forex services
contemplated by this Agreement together with its equities, futures, options and other brokerage
and related services; provided, however, that, solely for the purpose of soliciting and referring
to
Broker forex or futures accounts for existing GAIN customers or prospects, GAIN may, with
Broker’s prior written approval of the copy, method and distribution, market by direct mail or
similar direct means the forex brokerage and deal services contemplated by this Agreement
(“Referred Forex Customers”) and Broker’s futures brokerage services (“Referred Futures
Cus1Iomers”). The parties acknowledge that a principal part of any marketing approach may
be the value of the TradeStation platform for the design, testing, optimization,
automation and
analysis of forex trading ideas and strategies. The forex services under this Agreement shall be
solely under the TradeStation brand, and shall have a TradeStation brand look and feel, and the
only references to GAIN in the forex service offering shall be to fully disclose the relationship
between Broker and GAIN, and the role and services GAIN will perform, in the account opening
documentation, the contract between the Customer and GAIN therein, and in legal sections of
marketing materials.

     13.2 Linking Between Sites. Without express written authorization, and except as
specifically described in this Agreement, neither party may provide or allow an electronic
hyperlink directly from its service or site on the Internet to the other’s.

     13.3 Referred Futures Customers. A “Referred Futures Customer” is any customer
who opens a futures brokerage account with Broker during the term of this Agreement (a)
directly as a result of the solicitation, procurement and referral of that customer by GAIN to
Broker, and (b) at the time of the referral, holds no other account with Broker or
Broker’s
affiliates (as a securities, futures or forex brokerage customer or as a subscriber or software
licensee). Broker shall pay GAIN a referral fee, on a monthly basis, for each Referred Futures
Customer, equal to 3% of each base round-turn commission (GAIN acknowledges that nearly all

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of Broker’s futures trades are electronic contracts for which $5.00 is the advertised base
round-turn commission charged) paid by such Referred Futures Customer with respect to each
round-turn traded by such Referred Futures Customers prior to the first anniversary of the date
such Referred Futures Customer’s account is funded. Broker has no obligation to approve or open, or
refrain from closing or otherwise dealing with, any futures account referred by GAIN.

14.0 TERMINATION OF AGREEMENT

     This Agreement shall continue until March 31, 2008 unless earlier terminated as
hereinafter provided:

     14.1 Termination Upon 30-Day Notice. This Agreement may be terminated by Broker
without cause upon at least thirty days prior notice. If Broker terminates this Agreement
pursuant to this Section 14.1, GAIN shall have the right to limit the number of new accounts it
accepts from Broker during the period between the giving of notice and the transfer of Broker’s
accounts. In the event that Broker terminates this Agreement pursuant to this Section 14.1: (a) if
the ,effective date of termination is on or before December 31, 2005, Broker shall pay to GAIN a
fee of $250,000; (b) if the effective date of termination is on or before December 31, 2006,
Broker shall pay to GAIN a fee of $125,000; (c) if the effective date of termination is on or
before August 31, 2007, Broker shall pay to GAIN a fee of $62,500; and, (d) if the effective date
of termination is on or after September 1,2007, but prior to March 1, 2008, Broker shall pay to
GAIN a fee of $31,250; provided, however, in no event shall any fee be payable if Broker’s
notice to terminate is given prior to Compatibility being attained to Broker’s satisfaction or if
Broker’s notice of termination is given prior to the sixtieth day following the date Customers
first begin executing forex deals with GAIN via the Compatibility as contemplated by this
Agreement. If any fee described in this Section 14.1 is payable by Broker, it shall be
paid on or
before the effective date of termination and, when paid, shall constitute a lump-sum royalty
payment for a continuation of the license from GAIN to Broker of the forex market data pursuant
to Section 2.1.7 (and, upon such payment being made, such license shall automatically be so
extended) from the effective date of termination through March 31, 2008.

     14.2 No Termination by GAIN Without Cause. This Agreement may be terminated by
GAIN only pursuant to Section 14.3 or 14.4 below.

     14.3 Default. If either party defaults in the performance of its
obligations under this
Agreement, or otherwise violates the provisions of this Agreement, the non-defaulting party may
terminate this Agreement by delivering notice to the defaulting party: (i) specifying the nature of
the default; and (ii) notifying the defaulting party that unless the default, if curable, is cured
within a period of 30 days from the date of the notice, this Agreement will be terminated without
further proceedings by the non-defaulting party; provided, however, if the party in default or
violation commences its cure activities or actions within said 30-day period and diligently
pursues to cure until the cure is effected, the 30-day grace period shall be extended by the
additional time it takes to complete the cure.

     14.4 Inability to Perform. This Agreement may be terminated by GAIN or Broker
immediately in the event that the other party is enjoined, suspend cd, prohibited, or othe1’Wise
becomes unable to engage in the forex business or any part of it by operation of law or as a result

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of any administrative or judicial order by any governmental, regulatory, or self-regulatory.
organization having jurisdiction over such party.

     14.5 Omnibus Account. The parties acknowledge and agree that it is anticipated that
Broker may, sometime in the future during the term of this Agreement, request to convert the
services described in this Agreement to undisclosed omnibus account services. GAIN agrees
that if and when that time comes (i) GAIN will, if reasonably requested by Broker, execute and
deliver a replacement or modified agreement materially consistent with the t=s of this Agreement
(with all business terms and risks at least as favorable to Broker as the ones set forth
in this Agreement and no less favorable than the terms of any omnibus account GAIN is then
clearing) and (ii) GAIN shall at no additional cost to Broker promptly implement all internal
operational changes necessary to facilitate Broker’s conversion from an introducing broker
arrangement to an omnibus account.

     14.6 Conversion of Accounts. In the event that this Agreement is
terminated for any
reason other than by a valid termination by GAIN pursuant to Section 14.4, Broker shall arrange
for the conversion of Broker’s and its Customers’ accounts to another company that will act as
principal counterparty or otherwise provide forex trading services for Broker’s introduced
customers, or to Broker if it plans to directly engage in such activities. Both parties shall use
all
reasonable efforts to help ensure that the transition is’ as seamless and uninterruptive to
Customers as possible. Broker shall give GAIN notice (the “Conversion Notice”) of: (i) the
name of the company that will assume responsibility for forex services for Customers and
Broker; (ii) the expected date on which such company will commence providing such services
(which is subject to reasonable changes as the conversion is implemented); (iii) whether SI
bulk
transfer is being requested (which, if it is, shall be honored by GAIN within a reasonable time
period and include a blanket assignment of GAIN’s agreements and other rights with or relating
to Customers in form and content reasonably acceptable to Broker); and (iv) the name of an
individual or individuals within the new company whom GAIN may contact to coordinate the
conversion. With respect to any such conversion, each party shall comply with all applicable
Rules, and bear its own cost and expenses relating to the conversion.

     14.7 Survival. Termination of this Agreement in any manner shall not release Broker
or GAIN from any liability or responsibility with respect to any representation or warranty or
covenant, or any indemnification obligation, or from any obligation or liability under this
Agreement accruing prior to termination of this Agreement, or affect any Customer forex
transaction on the books of GAIN.

15.0 CONFIDENTIAL NATURE OF DOCUMENTS AND OTHER INFORMATION

     15.1 Confidentiality. Neither GAIN nor Broker shall disclose the terms of this
Agreement or information obtained as a result hereof, except to
governmental, regulatory or self· regulatory organizations, pursuant to judicial process or as otherwise required by law, or to
authorized employees. Any other publication or disclosure of the terms of this Agreement may
be made only with the prior written consent of the other party. Broker and GAIN shall each
maintain the confidentiality of documents and information received from the other party pursuant
to this Agreement. Each party acknowledges that the transactions and activities contemplated
herelll1der may involve access to each other’s proprietary technology, trading and other systems,
and that techniques, algorithms and processes contained in such systems constitute trade secrets,
and each party shall exercise reasonable care to protect the other’s interest in such trade
secrets.

12 

 

Each party agrees to make the proprietary nature of such systems known to those of its
consultants, staff, agents or clients who may reasonably be expected to come into contact with
such systems. Each party agrees that any breach of this confidentiality provision may result in
its being liable for damages as provided by law.

     15.2 Injunctive Relief. In the event of a breach or threatened breach of any of the
provisions of this Agreement by either party or any employee or representative of either party,
for which payment of damages would not be an adequate remedy (in whole or in part),
the other
party shall be entitled to seek preliminary and permanent injunctive relief to enforce the
provisions hereof. In addition, each party acknowledges that a breach of the tenns regsLJ:ding
confidentiality of information would cause irreparable and incalculable damage to the party that
owns such confidential information. Nothing herein shall preclude the parties from pursuing any
action or other remedy for any breach or threatened breach of this Agreement, all of which shall
be cumulative.

16.0 ACTION AGAINST CUSTOMERS BY GAIN

     GAIN may, in its sole discretion, upon notice to Broker, institute and prosecute in its
name any action or proceeding against any Customer in relation to any controversy or claim
arising out of GAIN’s agreements and transactions with such Customer provided that GAIN has
a good faith claim that has been rejected by the Customer, and Broker, after receiving reasonably
detailed notice from GAIN, has unreasonably refused to pursue the claim against such Customer.
Nothing contained in this Agreement shall be deemed either (a) to require GAIN to institute or
prosecute such an action or proceeding, or (b) to impair or prejudice its right to do so, should it
so eject, nor shall the institution or prosecution of any such action or proceeding relieve Broker
of any liability or responsibility which Broker would otherwise have had under this Agreement.
Broker assigns to GAIN its rights against its Customer as necessary to effectuate the provisions
of this paragraph.

17.0 NOTICES

Except as otherwise provided in this Agreement, all notices required to be given under
this .Agreement shall be in writing, and shall be effective upon receipt as provided herein. Any
such written notice shall be deemed received upon the earlier of: (a) actual receipt by the other
party; or (b) the close of business on: (i) the date of transmission if sent by facsimile
or same day
courier, (ii) on the business day after the date sent, if sent by overnight courier, or (iii) the
fifth business day after post-marked, if sent by first-class mail, postage prepaid. For the
purposes
of delivery of any notice hereunder, the address and facsimile number of GAIN and Broker,
respectively, shall be as set forth below. Either party may change its address or facsimile
number for notices by giving written notice of the new address or number to the other party.

	 	 	 

	Broker:

	 	TradeStation Securities, Inc.

8050 SW 10th St., Suite 2000

Plantation, FL 33324

Fax No.: (954) 652-7019 and (954) 652-5701 and (954) 652-5021

Attn: Joseph Nikolson and Marc J. Stone

13 

 

	 	 	 

	GAIN:

	 	GAIN Capital Group, Inc.

35 Technology Drive

Warren, NJ 07059

Fax No.: (908) 731-0701

Attn: Glenn Stevens and Mark Galant

18.0 GENERAL PROVISIONS

     18.1 Successors and Assigns. This Agreement shall be binding upon and shall inure
to the benefit of the parties and their respective successors and assigns. No assignment of this
Agreement or any rights hereunder by Broker or GAIN shall be effective unless the other’s
written consent shall be first obtained, which shall not be unreasonably withheld or delayed.
Notwithstanding the foregoing, and except as required by applicable Rules, no consent shall be
required for any assignment in connection with a direct or indirect sale or transfer of the equity
interests in, or assets of, a party. Each party may assign this Agreement to any of its affiliates
without consent being required.

     18.2 Severability. If any provision of this Agreement shall be held to be invalid or
unenforceable, the validity or enforceability of the remaining provisions and conditions shall not
be affected thereby.

     18.3 Counterparts. This Agreement may be executed and delivered via facsimile and
in oue or more counterparts, all of which taken together shall constitute a single agreement, and
shall be as legally binding as ink signatures delivered in person.

     18.4 Entire Agreement Amendments and Duties Not Specifically Enumerated Herein.
This Agreement represents the entire agreement between the parties with respect to the subject
matter herein contained and all prior discussions, agreements and promises, written or oral, are
herein merged. This Agreement may not be changed orally, but only by an agreement in writing signed
by the parties.

     18.5 Captions. Captions herein are for convenience only and are not of substantive
Effect.

     18.6 Applicable Law. This Agreement shall be governed by and construed in
accordance with the internal laws of the State of New York, without giving effect to its
principles of conflicts of laws. The parties agree to submit any dispute arising out of this
Agreement to the jurisdiction of, and hereby consent to jurisdiction and venue in, any state or
federal court in Broward County, Florida. Each party waives any objection to venue or
jurisdiction that it may have pursuant to the doctrine of forum non conveniens.

     18.7 Construction of Agreement. Neither this Agreement nor the performance of the
services hereunder shall be considered to create a joint venture or partnership between GAIN and
Broker or between Broker and other brokers for whom GAIN may perform the same or similar

14 

 

services.

     18.8 Non-Exclusivity of Remedies. The enumeration herein of specific remedies shall
not be exclusive of any other remedies. Any delay or failure by a party to this Agreement to
exercise any right, power, remedy, or privilege herein contained, or now or hereafter existing
under any applicable Rules, shall not be construed to be a waiver of such light, power, remedy,
or privilege. No single, partial, or other exercise of any such light, power, remedy, or privilege
shall preclude the further exercise thereof or the exercise of any other right, power, remedy, or
privilege.

     18.9 Broker’s Customers. Each brokerage client account introduced or transferred or
cleared by Broker to or through GAIN or for which Broker provides commodities, futures,
options, forex or securities brokerage services of any kind (as the case may be, a “Broker
Customer”), shall be treated by GAIN as confidential and proprietary information of Broker, and
GAIN shall not disclose or use any such information, including names or contact information of
any Broker Customers, except as required by Rules (GAIN hereby specifically acknowledging
that all of such information constitutes trade secrets of Broker). In addition, GAIN covenants to
Broker that GAIN shal1 not, and shall not permit any of its affiliates (GAIN and its affiliates are
collectively referred to as “GAIN Group”), under any circumstances, to solicit or accept
commodities, futures, options, forex or securities brokerage business of any kind from any
Broker Customers for a period commencing the date of the Agreement and ending two years
following termination of the Agreement (regardless of the reason for termination). In no event,
however, shall any member of GAIN Group ever, at any time during or after the Agreement,
directly or actively solicit the business of any Broker Customer.

     18.10 Relationship Manager. GAIN shall provide to Broker, at no additional
fee, cost or
expense, priority service, support, assistance and treatment in all material respects to help
ensure
that the business relationship between GAIN and Broker (as same may evolve to omnibus
clearing status as contemplated by this Agreement), and to help ensure that the brokerage and
clearing operations that this Agreement seeks to produce, are as high-quality and efficient as
reasonably possible.

IN WITNESS WHEREOF, the parties have executed and delivered this Agreement by
their respectively duly authorized officers on the date first above written.

	 	 	 	 	 	 	 

	 	 	GAIN CAPITAL GROUP, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 	 	Glenn Stevens, Managing Director	 	 
	 
	 	 	 	 	 	 
	 	 	TRADESTATION SECURITIES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 	 	Marc J. Stone, Vice President	 	 

15 

 

Exhibit A to Forex Introducing Broker Agreement between GAIN Capital Group, Inc.

(“GAIN”) and TradeStation Securities, Inc. (“TradeStation”)

1. GAIN shall offer via Compatibility and Orally-transmitted Trades the currency pairs set forth in
Exhibit A-I at the spreads (Pips) set forth below; such spreads may be amended from time to time
only as mutually agreed in writing by GAIN and TradeStation by an amendment to this Exhibit A,
provided that GAIN may, in its reasonable discretion consistent with industry practices, make
temporary spread adjustments for risk-management purposes in response to market volatility.
Subject to that proviso, the initial spread for each of the pairs on the attached Exhibit A-I shall
be
4 pips, except for EURIUSD and JPY/USD, each of which shall be 3 pips.

2. For each lot, per side, of each deal, GAIN shall pay TradeStation (a) for all Customers other
than
Referred Forex Customers, $8.50 ($17.00 round-trip, per lot, per deal), and (b) for
Referred Forex
Customers, (i) from account opening through the end of the ninth full calendar month
following account opening, $5.00 ($10.00 round trip, per lot, per deal), (ii) from the end of such
ninth month through the eighteenth full calendar month following account opening, $6.75 ($13.50
round trip, per lot, per deal), and (iii) for all periods thereafter, $8.50 ($17.00 round trip, per
lot, per deal). Payments shall be made on a semi-monthly basis by wire transfer to TradeStation’s
designated bank account at no cost or expense to TradeStation

3. With respect to the cost of carry/interest/premium GAIN charges for open positions/roUs, GAIN
shall, after deducting therefrom the amount, if any, of direct, out-of-pocket expenses paid by GAIN
(i.e., what GAIN pays the bank) to enable or maintain such open position/roll, 75% of the cost of
carry/interest/premium, which shall be remitted to TradeStation together with the
payments described in Section 2 above.

4. TradeStation will receive and be paid by GAIN 80% of the interest income generated by or from
Customers’ accounts, including interest income derived from interest paid to GAIN for Customers’
credit balances, together with the payments described in Section 2 above.

5. Any and all commissions and/or fees TradeStation charges Customer for forex transactions or any
related forex products or services (and TradeStation may charge such commissions and/or fees, or
not charge them, as TradeStation solely in its discretion determines) shall belong to, and be the
property of, solely TradeStation. Any such amounts shall be properly debited by GAIN to the
Customers’ accounts (provided that GAIN has received sufficient prior notice thereof from
TradeStation) and 100% thereof shall be remitted to TradeStation together with the payments
described in Section 2 above.

	 	 	 	 	 	 	 

	 	 	Agreed to and Accepted:	 	 
	 
	 	 	 	 	 	 
	 	 	GAIN CAPITAL GROUP, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 	 	Glenn Stevens, Managing Director	 	 
	 
	 	 	 	 	 	 
	 	 	TRADESTATION SECURITIES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 	 	Marc J. Stone, Vice President	 	 

16 

 

Exhibit A-1

Currency Pairs and Crosses

AUD/JPY

AUD/NZD

AUD/USD

CHF/JPY

EUR/AUD

EUR/CHF

EUR/GBP

EUR/JPY

EUR/SEK

EUR/USD

GBP/CHF

GBP/JPY

GBP/USD

NZD/USD

USD/CAD

USD/CHF

USD/JPY

USD/MXN

USD/NOK

USD/SEK

USD/ZAR

17exv10w55

EXHIBIT 10.55

EXECUTIVE EMPLOYMENT AGREEMENT

THIS
EXECUTIVE EMPLOYMENT AGREEMENT (the “Agreement”) is
dated as of December 6, 2010 (the
“Effective Date”) and is by and between GAIN Capital Holdings, Inc., a corporation organized under
the laws of Delaware, including its subsidiaries and affiliates (the “Company”) and Timothy
O’Sullivan, a resident of (“Executive”). This Agreement supersedes the employment offer
letter, dated as of March 8, 2000, by and between the Company and the Executive.

Recitals

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

WHEREAS, Executive has served as Chief Dealer of the Company since March 24, 2000;

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

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

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

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

     3. Duties and Extent of Services.

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

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

1

 

and best efforts to the fulfillment of his employment obligations, and he shall exercise the
highest degree of loyalty and the highest standards of conduct in the performance of his duties.

     4. Compensation.

     (a) Base Salary. The Company shall pay the Executive a base salary (the
“Base Salary”) of not less than $240,000 per year, payable in monthly installments. The Base Salary
shall be reviewed by the Board annually and may be increased in the Board’s sole discretion. The
Executive shall not receive any additional compensation from any subsidiary of the Company
following the date hereof.

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

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

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

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

2

 

distributed by the Company or to its employees requiring such employees to abide by its
insider information policies.

     8. Termination.

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

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

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

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

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

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

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

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

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

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

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

3

 

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

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

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

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

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

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

     9. Compensation Upon Termination.

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

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

4

 

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

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

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

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

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

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

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

5

 

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

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

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

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

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

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

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

6

 

Executive at the time of his termination date shall immediately vest in full
and/or become immediately exercisable or payable on the Executive’s termination date; and

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

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

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

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

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

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

     (III) A “Change in the Ownership of Assets of the Company” shall occur on the date that any
one Person acquires, or Persons Acting as a Group acquire (or has or have acquired during the
12-month

7

 

period ending on the date of the most recent acquisition by such Person or Persons),
assets from the Company that have a total gross fair market value equal to or more than 75% of the
total gross fair market value of all of the assets of the Company immediately before such
acquisition or acquisitions. For this purpose, “gross fair market value” means the value of the
assets of the Company, or the value of the assets being disposed of, determined without regard to
any liabilities associated with such assets.

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

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

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

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

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

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

     (e) Termination With Cause, Resignation Without Good Reason, or Expiration of
the Agreement. If, whether or not in connection with a Change in Control, the Company
terminates the Executive’s employment with Cause pursuant to Section 8(c), if the Executive
resigns without Good Reason pursuant to Section 8(f), or if the Executive is entitled to
the severance benefits pursuant to Section 9(c) or Section 9(d) and either does not
execute or revokes the general release of claims required pursuant to Section 9(f), or is
in breach of any of the covenants set forth in Sections 10, 11, 12, 13 or 14 below, the Company
will pay the Executive his Base Salary accrued and unpaid as of the date of termination of
employment as well as any accrued but unused PTO and appropriate expense reimbursements. Such
amounts will be paid as soon as practicable after the termination of employment.
The Company shall have no further obligations under this Agreement to the Executive. If this
Agreement expires without any extension or renewal of its terms, the Executive will be an at-will
employee of the Company thereafter unless the Company elects to terminate the Executive’s
employment coincident with such expiration and the Company shall have no further obligations under
this Agreement to the Executive. If the Company elects to terminate the Executive’s employment
coincident with the expiration of this Agreement, the Company will pay the Executive his Base
Salary accrued and unpaid as of the date of

8

 

termination of employment as well as any accrued but
unused PTO and appropriate expense reimbursements. For the avoidance of doubt, in no event shall
the expiration of this Agreement, or the termination of Executive’s employment coincident with such
expiration, be construed as a termination without Cause or resignation for Good Reason.

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

     (g) Section 280G Cutback. The Executive shall bear all expense of, and be
solely responsible for, all federal, state, local or foreign taxes due with respect to any payment
received under this Agreement, including, without limitation, any excise tax imposed by Code
section 4999. Notwithstanding anything to the contrary in this Agreement, in the event that any
payment or benefit received or to be received by the Executive pursuant to the terms of this
Agreement or in connection with the Executive’s termination of employment or contingent upon a
Change in Control pursuant to any plan or arrangement or other agreement with the Company or any
affiliate (collectively, the “Payments”) would be subject to the excise tax imposed by Code section
4999, as determined by the Company, then the Payments shall be reduced to the extent necessary to
prevent any portion of the Payments from becoming nondeductible by the Company under Code section
280G or subject to the excise tax imposed under Code section 4999, but only if, by reason of that
reduction, the net after-tax benefit received by the Executive exceeds the net after-tax benefit
the Executive would receive if no reduction was made. For this purpose, “net after-tax benefit”
means (i) the total of all Payments that would constitute “excess parachute payments” within the
meaning of Code section 280G, less (ii) the amount of all federal, state, and local income taxes
payable with respect to the Payments calculated at the maximum marginal income tax rate for each
year in which the Payments shall be paid to the Executive (based on the rate in effect for that
year as set forth in the Code as in effect at the time of the first payment of the Payments), less
(iii) the amount of excise taxes imposed on the Payments described in clause (i) above by Code
section 4999. If,
pursuant to this Section 9(g), Payments are to be reduced, the Company shall determine
which Payments shall be reduced in a manner so as to avoid the imposition of additional taxes under
Code section 409A.

9

 

     10. Confidentiality; Return of Company Property.

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

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

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

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

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

10

 

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

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

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

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

     18. Governing Law; Assignability.

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

11

 

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

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

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

If to the Company:

GAIN Capital Holdings, Inc.

Bedminster One

135 Route 202/206

Bedminster, New Jersey 07921

Attention: Chief Executive Officer

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

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

     21. Section 409A.

     (a) This Agreement shall be interpreted to avoid the imposition of any additional
taxes under Code section 409A. If any payment or benefit cannot be provided or made at the time
specified herein without incurring additional taxes under Code section 409A, then such benefit or
payment shall be provided in full at the earliest time thereafter when such sanctions will not be
imposed. The preceding provisions, however, shall not be construed as a guarantee by the Company of
any particular tax effect to Executive under this Agreement. For purposes of Code section 409A,
each payment under this Agreement shall be treated as a separate payment and the right to a series
of installment payments under this
Agreement shall be treated as a right to a series of separate payments. In no event may the
Executive, directly or indirectly, designate the calendar year of payment.

     (b) To the maximum extent permitted under Code section 409A, the cash severance
payments payable under this Agreement are intended to comply with the ‘short-term deferral
exception’

12

 

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

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

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

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

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

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

13

 

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

14

 

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

	 	 	 	 	 

	GAIN CAPITAL HOLDINGS, INC.	 	 
	 
	 	 	 	 
	By:
	 	/s/ Glenn Stevens	 	 
	Name:

	 	 

Glenn Stevens
	 	 
	Title:

	 	President and Chief Executive Officer	 	 
	 
	 	 	 	 
	/s/ Timothy O’Sullivan	 	 
	 	 	 
	Timothy O’Sullivan	 	 

15

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