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Exhibit 10.2  

 
 

MUTUAL SERVICES AGREEMENT    
    

This
MUTUAL SERVICES AGREEMENT (the "Agreement") is entered into as of March 27, 2001 by and between 

        INSTINET
CORPORATION, a Delaware Corporation with offices at 875 Third Avenue, New York, New York 10022 ("Instinet"), Archipelago. L.L.C.. an Illinois limited liability company with
offices at 110 South Wacker Drive, Suite 2000, Chicago, IL 60606 ("ENTITY"). 

Each
of Instinet and ENTITY are sometimes referred 10 as "Party" or collectively as the "Parties." 

 
 

WITNESSETH:    

        WHEREAS,
Each of lnstinet and ENTITY are broker-dealers registered with the Securities and Exchange Commission ("SEC") and members of the National Association of Securities
Dealers, Inc. ("NASD"): and 

        WHEREAS.
Instinet has developed specifications (the "Instinet Specifications") using the Financial Information Exchange ("FIX") protocol, for the development of a
computer-to-computer interface to the proprietary Instinet Real-Time Trading Service (the "Instinet System"), to enable ENTITY to receive from Instinet the Instinet
Services (as defined herein); 

        WHEREAS.
ENTITY has developed specifications (the "ENTITY Specifications"), using the FIX protocol for the development of a computer to computer interface to ENTITY'S proprietary
real-time trading system (the "ENTITY System") to enable Instinet to receive from ENTITY the ENTITY Services (as defined herein); 

        WHEREAS,
each of Instinet and ENTITY desires to receive the services of the other as defined herein and has requested a license to use the other's specifications, each to develop an
interface; 

        WHEREAS,
each of Instinet and ENTITY is willing to grant to the other a license to use its specifications to develop an interface, and to provide the other with access to the services as
described herein, subject to the terms and conditions hereof; 

        NOW,
THEREFORE, in consideration of the mutual promises contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows: 

 
 

TERMS AND CONDITIONS    

	1.
	License; Development of the Interfaces

	a)
	Instinet
represents that it owns all right, title and interest in and to, or has the right to license the Instinet Specifications and access to the Instinet System and Instinet
Services and hereby grants to ENTITY a nonexclusive, non-transferable, royalty-free License to utilize the Instinet Specifications solely to develop an interface to the
Instinet System (the "Interface to Instinet System"), in order to enable ENTITY to receive the Instinet Services (as defined herein), ENTITY acknowledges that Instinet does not grant to ENTITY any
right to use or possess the Instinet Specifications for any other purpose.

	(b)
	ENTITY
represents that it owns all right, title and interest in and to, or has the right to license the ENTITY Specifications and access to the ENTITY System and Services and hereby
grants lo Instinct a nonexclusive, non-transferable, royalty-free license to utilize the ENTITY Specifications solely to develop an interface to the ENTITY System (the
"Interface to ENTITY System") in order to enable Instinet to receive the ENTITY Services (as defined herein). Instinet acknowledges that ENTITY does not grant to Instinet any right to use or possess
the ENTITY Specifications for any other purpose. 

	(c)
	For
purposes of this Agreement, the Interface to the Instinet System and the Interface to the ENTITY System are sometimes collectively referred to as the "Interfaces."

	(d)
	Each
Party shall bear the cost for any equipment and telecommunications or other installation costs; necessary to connect its Interface to the other Party's system,

	(e)
	Each
of Instinet and ENTITY shall test the functionality and performance of the Interfaces and their connectivity to the ENTITY System and the Instinet System, respectively, in a
timely manner. If and when both Parties are satisfied, in their respective sole discretion, with the functionality and performance of the Interfaces and their connectivity co the Instinet System and
the ENTITY System. Instinet shall provide ENTITY with access in the Instinet Services (as defined herein) and ENTITY shall provide Instinet with access to the ENTITY Services (as defined herein).

	(f)
	Each
Party may, from time to time, each in its sole discretion, modify its Specifications, including but not limited to the applicable protocol. In the event of a material
modification which affects or will affect the operation of the other Party's Interface, the Party making such modifications shall use commercially reasonable efforts to provide thirty (30) days
written notice of the effective date thereof, to the other Party; provided however, that in the event such modification is in response to any rule, order or other release of any regulatory authority
having jurisdiction over Instinet and/or ENTITY, and/or to correct any errors, bugs or omissions in their respective Specifications or System, the Party making the modification may provide written
notification to the other on less than thirty (30) days notice of the effective date of such modification.

	(g)
	Each
of Instinet and ENTITY shall be solely responsible for any and all costs and expenses incurred in the development or modification of their respective Interfaces. 

2.    Term of Agreement  

        The effective date of this Agreement shall be the earlier of the date each of the Parties receives a fully executed copy of this Agreement together with all
applicable and agreed to exhibits, schedules and amendments thereto, or the first day that either Party provides the other with access to their System via the Interfaces. Thereafter, this Agreement
shall continue automatically, month to month, unless terminated pursuant to Section 17 hereof. 

3.    Provision of Services  

	a)
	For
purposes of this Agreement. "Instinet Services" shall mean the ability for ENTITY to execute against orders directly on the Instinet System to purchase or sell securities (i.e. hit
or take) where (a) such orders have been published in and are part of the quotation montage of the Nasdaq Stock Market ("Nasdaq"); and (b) are available for execution at the time of
acceptance on Nasdaq's SelectNet Service (or any successor service). ENTITY understands that hit or take orders executed via Nasdaq's SelectNet Service (or any successor service) are subject to access
fees as listed on Schedule A attached hereto, and any other charges imposed by Nasdaq.

	b)
	For
purposes of this Agreement, "ENTITY Services" shall mean the ability for Instinet to execute against orders directly on the ENTITY System to purchase or sell securities (i.e. hit
or take) where (a) such orders have been published in and are part of the quotation montage of Nasdaq; and (b) are available for execution at the time of acceptance on Nasdaq's SelectNet
Service (or any successor service).

	c)
	For
purposes of this Agreement, the Instinet Services and the ENTITY Services are sometimes referred to collectively as "Services."

	d)
	Subject
to the terms and conditions hereof and to Instinct's and ENTITY'S satisfaction with the Interfaces. Instinct shall provide ENTITY with the Instinet Services for use solely in
the United States, unless otherwise agreed to by the Parties in writing, and ENTITY shall provide Instinet with the ENTITY Services for use solely in the United States unless otherwise agreed to by
the 

Parties
in writing. Each of Instinet and ENTITY agrees to utilize and pay for the Services as provided herein, 

	e)
	Each
of Instinet and ENTITY acknowledges and agrees that the Services are the only services that each Party shall provide to the other, and that each shall be entitled to receive,
pursuant to this Agreement. In furtherance and not in limitation of the foregoing. Instinet and ENTITY acknowledge and agree that each shall not be permitted to enter and/or
route new orders to purchase/sell securities into the other's System nor engage in negotiations with other clients of the other Party's System unless the Parties execute a.separate written agreement,
or addendum to this Agreement.

	f)
	Each
of Instinet and ENTITY agrees to utilize the other Party's System in the normal course of its business and within the capacity of the other Party's System. Should Instinet
determine, in its sole discretion, that ENTITY'S use of the Instinet System is extraordinary and/or beyond the normal capacity of the Instinet System, Instinet shall have the right, power and
authority to suspend or terminate ENTITY'S use immediately, with oral or other notification to ENTITY occurring prior to, simultaneously with, or immediately after, termination of ENTITY'S access via
the Interface. Should ENTITY determine, in its sole discretion, that Instinet's use of the ENTITY System is extraordinary and/or beyond the normal capacity of the ENTITY System, ENTITY shall have the
right, power and authority to suspend or terminate Instinet's use immediately, with oral or other notification to Instinet occurring prior to, simultaneously with, or immediately after, termination of
ENTITY'S access, via the Interface. 

4.    Client Identification Number;  

	a)
	Each
of Instinet and ENTITY will assign identification numbers or other identifier or password, unique and specific to the Other Party, (the "IDs") to authenticate the other Party to
its System.

	b)
	Each
of Instinet and ENTITY shall be solely responsible and liable for all trading and all other activity of any type conducted through the use of its assigned IDs.

	c)
	Each
of Instinet and ENTITY shall immediately notify the other Party if it has reason to believe that the security of any of its IDs has been compromised or corrupted, and shall
request that the issuing Party immediately disable such IDs. Upon receipt of such notice and request, the issuing Parry shall take action promptly to disable such IDs.

	d)
	Each
of Instinet and ENTITY agrees that it is solely responsible for the safeguarding, security, and confidentiality of any IDs assigned to it by the other Party.

	e)
	The
Terminal IDs assigned to each Party are set forth in Schedules A & B attached hereto.

	f)
	Each
of Instinet and ENTITY hereby agrees, represents and warrants that it shall supervise and monitor the use of and access to the other Party's Services, and shall ensure that such
use of and access to the other Party's Services shall be in accordance with the terms and conditions of this Agreement. 

5.    Payment for Services  

        Each of ENTITY and Instinet shall pay to the other Party, for use of the other Party's Services, the charges set forth in Schedules A and B, respectively, that
are annexed hereto and made a part hereof. Such charges may be changed by Instinct and ENTITY, effective at any time, upon ten (10) calendar days written notice to the other Party. Each of
Instinet and ENTITY acknowledges and agrees that its continued use of the other's Services beyond ten (10) calendar days after its receipt of written notice of such change or amendment, is
fully subject to any such change or amendment. 

6.    Compliance with Applicable Law  

        Each of Instinet and ENTITY shall monitor its personnel and customers to ensure, in connection with their use of the Services, that all of its personnel and
customers abide by and comply with all applicable provisions of the federal and state securities laws, rules and regulations of any self-regulatory 

securities
organizations or securities exchanges of which each of Instinet and ENTITY and/or its personnel are members, or governmental agencies with jurisdiction over transactions executed by or on
behalf of the Parties through the Instinet & ENTITY Systems, including, among others, laws that relate to the use of non-public information, short sales, and the Parties receipt and
use of the Services, including but not limited to the Parties execution of securities transactions through the Instinet and ENTITY Systems. 

7.    Confidentiality and Trade Secrets  

	a)
	Each
of Instinet and ENTITY acknowledges and agrees that any information it receives through the other Party's Services, including but not limited to, any marketing data or research
prepared by Instinet or ENTITY for the other Party's use, the data base, programs, protocols, displays and manuals (including the selection, arrangement, and sequencing of the contents thereof) are
trade secrets, proprietary and unique to the other Parry, as to which copyright and patent rights of the other Party may also exist (the "Confidential Matter"), Each of Instinet and ENTITY agrees,
represents, and warrants that it will take all necessary precautions to maintain the secrecy and confidentiality of the other Party's Confidential Matter, and shall not disclose any such Confidential
Matter in any form to third parties, including, but not limited to, its customers or clients.

	b)
	Additionally,
each of Instinet and ENTITY shall keep confidential the terms of this Agreement and any additional non-public information regarding the other Parry that it
may receive in furtherance of this Agreement, except that the Parties may disclose the other's Confidential Matter to its directors, officers, employees and agents (including accountants, attorneys
and those of its parent company), (collectively, "Representatives") who need to know such information for the furtherance of
this Agreement; provided, however, that such Representatives are instructed to keep such information confidential in accordance with this Section 7. The receiving Party shall be responsible for
any breach of this subsection by any of its Representatives and agrees, at its sole expense, to take all reasonable measures (including but not limited to court proceedings) to restrain its
Representatives from prohibited or unauthorized disclosure or use of any Confidential Matter, Non-public information and the Confidential Matter shall include all information which either
Party does not make publicly available, but shall not include information which: (a) is otherwise in the public domain at the time of disclosure: (b) was in the possession of or
demonstrably known by either of Instinet or ENTITY prior to its receipt from the other; (c) is independently developed by either Party without use of non-public information; or
(d) becomes known to a receiving Party from a third party, where the receiving Party reasonably believes that the third party is not bound by
confidentiality obligations.

	c)
	If
a receiving Party is requested or required in any judicial or administrative proceeding or court to disclose any Confidential Matter, such receiving Party shall (i) use
commercially reasonable efforts to give the providing Party prompt notice of such request so that it may seek an appropriate protective order or other remedy and (ii) consult with the providing
Party as to the advisability of taking legally available steps to resist or narrow such request or requirement. The receiving Party shall cooperate fully with the providing Party in obtaining such an
order or other remedy. If in the absence of an appropriate protective order or other remedy the receiving Party is nonetheless legally required to disclose Confidential Matter, the receiving Party may
make such disclosure without liability hereunder; provided, however, that the receiving Party shall use its best efforts to give the providing Party
written notice of the information to be disclosed as far in advance of its disclosure as is practicable and, upon the providing Party's request and at its expense, use its best efforts to obtain
reasonable assurances that confidential treatment will be accorded to such Confidential Matter.

	d)
	Nothing
contained in this Section 7 shall be construed as granting or conferring any rights by license or otherwise to the Receiving Party in any Providing Party's Confidential
Matter. 

8.    Trademarks  

	a)
	Instinet
and the Matador Design are trademarks and service marks of Instinet, all rights reserved. ENTITY agrees, represents and warrants that these and other graphics, logos, service
marks and trademarks of Instinet (the "Instinet Marks") may not be used, displayed or referenced in any manner without the prior express written consent of Instinet. Nothing in this Agreement should
be construed as granting, by implication, estoppel, or otherwise, any license, right or authority to use the Instinet Marks.

	b)
	ENTITY
and the Archipelago trademarks and service marks are trademarks and service marks of ENTITY, all rights reserved. Instinet agrees, represents and warrants that these and other
graphics, logos, service marks and trademarks of ENTITY (the "ENTITY Marks") may not be used, displayed or referenced in any manner without the prior express written consent of ENTITY. Nothing in this
Agreement should be construed as granting, by implication, estoppel, or otherwise, any license, right or authority to use the ENTITY Marks. 

9.    Trade Reporting

	a)
	For
the purposes of transaction reporting to the Automated Confirmation Transaction Service ("ACT"), each of Instinet and ENTITY acknowledges and agrees that the Party that executes
any trade on its system shall be permitted to transmit price and/or quantity information about a particular trade to ACT and/or as otherwise required by regulatory authority or law. 

10.    Settlement of Transactions and Obligations

	a)
	ENTITY
agrees that settlement of trades executed by ENTITY through the Instinet System will be effected substantially in accordance with the manner set forth in Schedule C
hereto, ENTITY agrees that it is ENTITY'S absolute, non-assignable and unconditional obligation, in connection with each securities trade executed by ENTITY through the Interface to the
Instinet System to deliver, by settlement date, in good deliverable form, the subject securities and/or funds, as well as any required remittance of interest, dividend payments, and/or other
distributions. ENTITY agrees, represents, and warrants that it shall honor this settlement obligation without regard to whether: (a) the trade was made as a principal, or for a third-party
account as a broker, agent, trustee or other representative; (b) any such third-party account honors its obligations to deliver in a timely manner securities and/or funds, or remits in a timely
manner interest, dividends, or other distributions to ENTITY; (c) the trade executed was authorized by ENTITY and/or any third-party account; or (d) ENTITY wishes to challenge or raise
defenses of any nature whatsoever to the transaction. Without limiting the foregoing obligation, in the event ENTITY does not receive timely delivery of securities and/or funds from a third-party
account, or if ENTITY becomes aware that a third-party for whom ENTITY is acting is unwilling or unable to settle any transaction. ENTITY shall provide to Instinet immediate notice thereof, including
without limitation the identity (name and address) of the third party.

	b)
	Instinet
agrees that settlement of trades executed by Instinet through the ENTITY System will be effected substantially in accordance with the manner set forth in Schedule D
hereto. Instinet agrees that it is Instinet's absolute, non-assignable and unconditional obligation, in connection with each securities trade executed by Instinet through the Interface in
the ENTITY System to deliver, by settlement date, in good deliverable form, the subject securities and/or funds, as well as any required remittance of interest, dividend payments, and/or other
distributions. Instinet agrees, represent, and warrants that it shall honor this settlement obligation without regard to whether: (a) the trade was made as a principal, or for a third-party
account as a broker, agent, trustee or other representative; (b) any such third-party account honors its obligations to deliver in a timely manner securities and/or funds, or remits in a timely
manner interest, dividends, or other distributions to Instinet; (c) the trade executed was authorized by Instinet and/or any third-party account; or (d) Instinet wishes to challenge or
raise defenses of any nature whatsoever to the transaction. Without limiting the foregoing obligation, in the event Instinet does not receive timely 

delivery
of securities and/or funds from a third-party account, or if Instinet becomes aware that a third-party for whom Instinet is acting is unwilling or unable to settle any transaction, Instinet
shall provide to ENTITY immediate notice thereof, including without limitation the identity (name and address) of the third party. 

11.    Restricted Third Party Rights

	a)
	Each
of Instinet's clients shall be and hereby is deemed a third-party beneficiary of ENTITY'S obligations in Section 10 hereof. No other third party beneficiary rights in any
regard with respect to any client or any other third party are created by this Agreement.

	b)
	Each
of ENTITY'S clients shall be and hereby is deemed a third party beneficiary of Instinet's obligations in Section 10 hereof. No other third party beneficiary rights in any
regard with respect to any client or any other third party are created by this Agreement. 

12.    Clearly Erroneous Trades

	a)
	Instinet
has the right, power, and authority, in its sole discretion, to modify the terms of or ro cancel transactions executed through the Instinet System that Instinet determines in
its sole discretion to be the product of clearly erroneous orders placed by or on behalf of ENTITY into the Instinet System.

	b)
	ENTITY
has the right, power, and authority, in its sole discretion, to modify the terms of or to cancel transactions executed through the ENTITY System that ENTITY determines in its
sole discretion to be the product of clearly erroneous orders placed by or on behalf of Instinet into the ENTITY System. 

13.    Indemnity

	a)
	ENTITY
agrees to indemnify and hold Instinet, its affiliates (and their respective officers, directors, and employees) harmless from and against all costs, including, but not limited
to, costs relating to damages (direct, consequential, and/or incidental in nature, claims, demands, proceedings, suits, actions, investigations or inquiries by any regulatory body, any other
liabilities, and any legal fee or costs related thereto (together, the "Instinet Costs") resulting from, in connection with, or arising out of any failure by ENTITY, for any reason, fraudulent,
negligent, or otherwise, to comply with its obligations, or breach of its representations or warranties under this Agreement, unless such Instinet Costs result directly and solely from the gross
negligence, willful misconduct or fraud of Instinet.

	b)
	Instinet
agrees to indemnity and hold ENTITY, its affiliates (and their respective officers, directors, and employees) harmless from and against all costs, including, but not limited
to. costs relating to damages (direct, consequential, and/or incidental in nature), claims, demands, proceedings, suits, actions, investigations or inquiries by any regulatory body, any other
liabilities, and any legal fees or costs related thereto (together, the "ENTITY Costs") resulting from, in connection with, or arising out of any failure by Instinet, for any reason, fraudulent,
negligent, or otherwise, to comply with its obligations, or breach of its representations or warranties under this Agreement, unless such ENTITY Costs result directly and solely from the gross
negligence, willful misconduct or fraud of ENTITY. 

14.    No Warranties

	a)
	ENTITY
understands that all Instinet Services and Specifications are provided "as is", without warranty of any kind, by Instinet and its subsidiaries and affiliates, including, but not
limited to the implied warranties of merchantability, fitness for a particular purpose, title, and non-infringement. The entire risk as to the quality and performance of any Instinet
Service or Specification provided pursuant to or contemplated by this Agreement is unilaterally with ENTITY. Instinet does not agree, represent or warrant that such Instinet Service or Specification
will meet ENTITY'S 

requirements,
be error free, or operate without interruption. Instinet intends the information contained in the Instinet Services to be accurate and reliable and that the transactions will be carried
out without interruption or error. ENTITY, however, acknowledges and accepts that such errors may occur and agrees that any such errors do not create any cause of action or basis for recourse against
Instinet. Instinet makes no representations, express or implied, as to the content or accuracy of any third-party information available to ENTITY through use of the Instinet Services. Specifications
or the FIX Interface provided pursuant to or contemplated by the Agreement, and disclaims any responsibility for its content. 

	b)
	Instinet
understands that all ENTITY Services and Specifications are provided "as is," without warranty of any kind, by ENTITY and its subsidiaries and affiliates, including, but not
limited to, the implied warranties of merchantability, fitness for a particular purpose, title, and non-infringement. The entire risk as to the quality and performance of any ENTITY
Service or Specification provided pursuant to or contemplated by this Agreement is unilaterally with Instinet ENTITY does not agree, represent or warrant that such ENTITY Service or Specification will
meet Instinet's requirements, be error free, or operate without interruption. ENTITY intends the information contained in the ENTITY Services to be accurate and reliable and that the transactions will
be carried out without interruption or error. Instinet, however, acknowledges and accepts that such errors may occur and agrees that any such errors do not create any cause of action or basis for
recourse against ENTITY. ENTITY makes no representations, express or implied, as to the content or accuracy of any third-party information available to Instinet through use of the ENTITY Services,
Specifications or the Fix Interface provided pursuant to or contemplated by the Agreement, and disclaims any responsibility for its content. 

15.    No Investment Advice

        Instinet
and ENTITY each understand and acknowledge that no part of either Party's Services constitutes investment advice, and that the Services should not be construed  as making forecasts, projecting returns,
or recommending any particular course of action, security, investment strategy or other matter. 

16.    Limitation of Liability

        Except
as provided for in this section, NEITHER ENTITY, ITS SUBSIDIARIES AND AFFILIATES, NOR INSTINET ITS SUBSIDIARIES AND AFFILIATES, SHALL BE LIABLE FOR ANY LOSS OF PROFITS. LOSS OF
USE, LOSS OF COST OR OTHER SAVINGS, OR DAMAGE SUFFERED OR COSTS AND EXPENSES INCURRED BY THE OTHER PARTY, OR ANY THIRD PARTY CLAIMING BY OR THROUGH THE OTHER PARTY OF ANY NATURE, OR FROM ANY CAUSE
WHATSOEVER, WHETHER DIRECT, SPECIAL, INCIDENTAL, OR CONSEQUENTIAL, INCLUDING CHANGES TO OBLIGATIONS DUE UNDER THE LAWS, RULES, ORDERS, OR REGULATIONS OF ANY FEDERAL, STATE, OR OTHER REGULATORY
JURISDICTION, ARISING OUT OF OR RELATING TO THE FURNISHING PERFORMANCE OR USE OF, OR INABILITY TO USE ANY OF EITHER PARTY'S, SERVICE, SPECIFICATION, OR THE FIX INTERFACE PROVIDED PURSUANT TO OR
CONTEMPLATED BY THIS AGREEMENT. 

	a)
	Instinet
shall be responsible only for any direct loss or damage incurred by ENTITY directly and solely caused by: (i) errors in transmission and/or processing caused by
Instinet (verified by ENTITY'S system print-outs and substantiated by the computer's records) involving ENTITY in a transaction on terms other than those last entered by ENTITY;
(ii) any failure to confirm to ENTITY, by print-out at its terminal or by telephonic communication, any transaction to which ENTITY is a party, provided that ENTITY informs Instinet
promptly by telephone upon discovery of the same; (iii) Instinet's failure to make timely delivery of the subject securities and/or funds, as well as any required remittance of interest,
dividend payments, and/or other distributions not caused in whole or in part by the occurrence of any contingency beyond the control of Instinet, including but not limited to, work stoppages, fires,
civil disobedience, riots, rebellions, accidents, 

explosions,
interruptions or imperfections in telephone service, electrical disturbances, brown-outs or black-outs, floods, storms, acts of God, and similar occurrences; or
(iv) the gross negligence, willful default, or fraud of Instinet. 

	b)
	ENTITY
shill be responsible only for any direct loss or damage incurred by Instinet directly and solely caused by: (i) errors in transmission and/or processing caused by ENTITY
(as verified by ENTITY'S system print-outs and substantiated by the computer's records) involving Instinet in a transaction on terms other than those last entered by Instinet;
(ii) any failure to confirm to Instinet, by print-out at its terminal or by telephonic communication, any transaction to which Instinet is a party, provided that Instinet informs
ENTITY promptly by telephone upon discovery of the same; (iii) ENTITY'S failure to make timely delivery of the subject securities and/or funds, as well as any required remittance of interest,
dividend payments, and/or other distributions not caused in whole or in part by the occurrence of any contingency beyond the control of ENTITY, including but not limited to, work stoppages, fires,
civil disobedience, riots, rebellions, accidents, explosions, interruptions or imperfections in telephone service, electrical disturbances, brown-outs or black-outs, floods,
storms, acts of God, and similar occurrences; or (iv) the gross negligence, willful default, or fraud of ENTITY. 

17.    Termination

	a)
	Either
Instinet or ENTITY may terminate this Agreement, at any time, each in its sole discretion upon ten (10) calendar days prior written notice.

	b)
	Each
of Instinet or ENTITY has the unilateral right, power, and authority to terminate this Agreement, immediately, and without prior notice to the other Party, in the event:

	(i)
	the
other Party has materially breached or otherwise failed to comply with or adhere to any representation, warranty or material obligation under this Agreement;

	(ii)
	the
other Party has violated or, in the first Party's reasonable judgment, is about to violate any applicable federal or state law, any rule or regulation of any
self-regulatory securities organization or securities exchange of which the other Party and/or its employees are members or governmental agencies with jurisdiction ever transactions
executed by or on behalf of it through the first Party's System in connection with its receipt or use of the Services or Specifications:

	(iii)
	the
other Party is engaged in a bankruptcy. insolvency or similar proceeding, on a voluntary or involuntary basis, an order or resolution is passed far its winding up,
a receiver or administrator is appointed in respect of any of its assets, or the Party is otherwise unable to pay its debts as they come due; or

	(iv)
	a
Party determines, in its sole discretion, that the other Party's continued use of its Services and Specifications poses an undue or significant financial, regulatory,
operational, or other risk to the first Party, or is otherwise not in accordance which the first Party's then-applicable criteria for continuing access.

	c)
	Notwithstanding
any provision to the contrary in this Agreement, Instinet and ENTITY shall have the right, power, and authority to cease providing Services to the other Party, and/or
terminate such Party's license to use the other Party's Specifications, at any time without prior notice, and without any obligation or liability to the other Party, in the event the first Party
determines that the other Party is not using its Services in a manner consistent with their intended purpose or otherwise in accordance with the terms of this Agreement.

	d)
	Termination
of this Agreement in any manner shall not release either Party from any liability or responsibility, including payment obligations, with respect to transactions effected
prior to the effective date of such termination, whether or not claims relating to such transactions have been made before or after such termination. 

18.    Material Change to Business

        Each
of Instinet and ENTITY shall provide the other Party with oral and written notice of any: (a) name change, (b) change in control, (c) material change in
business structure, or (d) material change in business or financial condition of business that could affect that Party's ability to settle a trade, as promptly as possible after the occurrence
of any such event. 

19.    Bankruptcy or Insolvency

        Each
of Instinet and ENTITY Shall provide immediate written notice to the other Party in the event of any voluntary or involuntary filing by or against it under any bankruptcy,
insolvency, dissolution or liquidation law of any jurisdiction, whether now or hereafter in effect. 

20.    Waiver of Compliance

        Any
failure of Instinet on the one hand, or ENTITY on the other, to comply with any obligation herein may be expressly waived in writing by the other party to this Agreement. Any such
waiver or failure to insist upon strict compliance with such obligation, however, shall not operate as a waiver of, or estoppel with respect to any subsequent or other failure. 

21.    Assignment

        This
Agreement and the rights hereunder are not transferable or assignable without the prior written consent of the non-assigning party; provided however, that this Agreement
may be assigned by either Party to (a) person or entity who acquires substantially all of its assets, stock or business by sale, merger or otherwise or, (b) to an affiliate of the Party,
provided that prompt written notice of such assignment is sent to the other Party. Any purported assignment that is not expressly permitted by this
Section shall be void. 

22.    Notices

        Unless
otherwise expressly specified, all notices and other communications required or permitted hereunder shall be in writing and shall be deemed to have been duly given if and when
delivered by hand or certified or registered mail with postage prepaid, to the address of Instinet or ENTITY first set forth below, or to such other person or address as Instinet or ENTITY shall
furnish to the other in writing. Notices by certified or registered mail will be deemed to be received three (3) business days after being sent or on proof of delivery, if earlier.
Communications with Instinet via electronic mail or through the Administrative Messages Function do not. under any circumstance, constitute effective notice for any purpose under this Agreement;
except that notification of changes to Specifications made in accordance with the terms and conditions of Section 1 herein by either Party may be made via email, return receipt requested, to
the appropriate contacts designated by the Parties;. 

        For
Notification of changes to the Specifications: 

	

If to Instinet:	
 	

Mr. Craig Longstaff

Instinet Corporation

3 Times Square

New York, NY 10036
	

If to Entity:	
 	

Pat Murphy

Director of Compliance

Archipelago, L.L.C.

100 South Wacker Drive

Suite 2000

Chicago, 1L 60606

        For
all other Notice under this Agreement: 

	

If to Instinet:	
 	

Mr. Jean-Marc Bouhelier, COO

Instinet Corporation

3 Times Square

New York, NY 10036
	

With a copy to:	
 	

Mr. Paul A. Merolla, Esq.

General Counsel

Instinet Corporation

3 Times Square

New York, NY 10036
	

If to ENTITY:	
 	

Same as above

23.    Authority

        Each
of Instinet and ENTITY agrees, represents, and warrants that it has full power and authority to enter into this Agreement and to perform all responsibilities, duties, and
obligations for which it is responsible hereunder. 

24.    Governing Law

        This
Agreement, and the respective rights and obligations of the Parties hereunder, shall be governed by and interpreted in accordance with the laws of the State of New York without
reference to its conflicts of law principles. 

25.    Arbitration

        In the event of any dispute between the parties arising out of this Agreement not covered by Section 26 (Choice of Forum) herein, the parties shall attempt
to resolve such dispute in good faith within thirty (30) calendar days of notification of the dispute delivered by one party to the other. If the parties do not resolve such dispute within such
thirty-day period, such dispute shall be resolved before the arbitration facilities of the New York Stock Exchange, Inc. ("NYSE") or the National Association of Securities
Dealers, Inc. ("NASD"), by binding arbitration to be conducted in accordance with the NYSE or NASD arbitration rules and procedures, as applicable, in force and effect at the time the dispute
arises. ENTITY agrees that Instinet has the unilateral right to select between the NYSE or NASD arbitration facilities to resolve any dispute covered by this Section  25. With respect to
arbitration brought pursuant to the rules of the NYSE, the parties agree that:

	a)
	Arbitration is final and binding on the parties.  
	b)
	 The parties are waiving their right to seek remedies in court,
including the right to jury trial.  
	c)
	 Pre-arbitration discovery is generally more limited than and different from court proceedings.  
	d)

	 The arbitrators' award is not required to include factual findings or legal reasoning and any party's right to appeal or to seek modification of rulings by the arbitrators is strictly
limited.  

        The panel of arbitrators will typically include a minority of arbitrators who were or are
affiliated with the securities industry.

26.    Choice of Forum

	a)
	Notwithstanding
anything contained herein to the contrary, with respect to any alleged causes of action, claims, loss, damage or dispute or part thereof relating to the validity,
infringement, defense or enforcement of any intellectual properly right (including without limitation any claim relating to any Intellectual property right intended to vest or be assigned to Instinet
or ENTITY hereunder, and/or with respect to any alleged causes of action, claims, loss, damage or dispute or part thereof relating to breach of confidentiality obligations by Instinet or ENTITY
hereunder, 

Instinet
and ENTITY hereby irrevocably consent to the personal jurisdiction and venue of the courts of the State of New York and of any federal courts located in New York. 

	b)
	In
addition to the foregoing, notwithstanding any prohibition to the contrary herein, each of Instinet and ENTITY also retains the right to seek an injunction in any court to protect
itself against a violation by the other Party of its intellectual property rights and confidentiality and each Party acknowledges that the remedy at law for any such breach or threatened breach under
this Agreement will be inadequate and that the other party will be entitled to apply for and obtain injunctive relief to restrain the breach or threatened breach of, or otherwise to specifically
enforce, the other Party's obligations under this Agreement. 

27.    Incorporation of Attachments

        These
Terms and Conditions, and all applicable and agreed to exhibits and schedules hereto, as may be amended from time to time, are incorporated in and made a part of this Agreement to
the same extent as if set forth in full herein. All references to particular Sections and subsections herein are to Sections and subsections contained in these Terms and Conditions, 

28.    Definitions

        Terms
defined in any portion of this Agreement shall have the same definition throughout this Agreement. 

29.    Headings

        The
headings of the Sections of this Agreement are inserted for convenience only and shall not constitute a part hereof or affect in any way the managing or interpretation of this
Agreement. 

30.    Survivability

        The
provisions of Sections 5, 6, 7, 8, 10, 11, 13, 14, 16, 24, 25 and 26 shall survive termination of this Agreement or any portion thereof. 

31.    Entire Agreement

        This
Agreement, including all applicable and agreed to exhibits and schedules hereto, as may be amended from time to time pursuant to Section 5 or this Section 31, as
applicable, shall constitute the entire agreement between Instinet and ENTITY, and shall supersede all prior agreements, arrangements, representations or promises, whether oral
or written between the Parties regarding use of the other Parties Services and Specifications at defined, herein. Other than with respect to the provisions of Section 5,
this Agreement may be amended only by a writing executed by both parties hereto. 

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

	 ARCHIPELAGO, L.L.C.	 	INSTINET CORPORATION
	

By:	

/s/  MIKE CORMACK      
	
 	

/s/  JOAN WHITE      

	Acknowledged and Agreed on

Behalf of ENTITY	 	Acknowledged and Agreed on

behalf of ENTITY
	Name: Mike Cormack	 	Name: Joan White
	Title: President	 	Title:
	Date: 4/18/01	 	Date:

 
 

Mutual Services Agreement dated March 27, 2001
  "SCHEDULE A"
  
    SCHEDULE OF CHARGES AND LOCATION OF EQUIPMENT
  FOR THE INSTINET SERVICES    
    

	 
	 	 
	 	 
	 	 
	 	 
	 	One Time

Installation Charge
	 	Monthly Charges

	

•	
 	

Charge per Instinet Access ID:	
 	
[***]	
 	

[***]
 
	

 	
 	

Id#	
 	

	
 	

(FIX)	
 	

located at	
 	

	
 	

 
	

 	
 	

Id#	
 	

	
 	

(FIX)	
 	

located at	
 	

	
 	

 
	

 	
 	

Id#	
 	

	
 	

(FIX)	
 	

located at	
 	

	
 	

 
	

 	
 	

Id#	
 	

	
 	

(FIX)	
 	

located at	
 	

	
 	

 
	

•	
 	

Monthly Schedule of Transaction Fees for trades executed directly with Instinet via FIX:

	 
	 	Share Volume [***]
 
	 	Price per Share

	

 	
 	

[***]	
 	

[***]
	
1.	
 	

[***]	
 	

 
	

2.	
 	

[***]	
 	

 
	

3.	
 	

[***]	
 	

 
	

4.	
 	

[***]	
 	

 

	

By:	
 	

/s/  MIKE CORMACK      
	
 	

 
	Acknowledged and Agreed on

Behalf of Archipelago, L.L.C.	 	 
	

Name: Mike Cormack

Title: President

Date: 4/18/01	
 	

 

*** Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect
to the omitted portions. 

        Mutual
Services Agreement dated March 27, 2001 

 
 

"SCHEDULE B"
  
    SCHEDULE OF CHARGES AND LOCATION OF EQUIPMENT
  FOR THE ENTITY SERVICES    
    

	

By:	
 	

	
 	

 
	Acknowledged and Agreed on

Behalf of Instinet Corporation	 	 
	

Name:

Title:

Date:

	
 	

 

 
 

Mutual Services Agreement dated March 27,2001
  "SCHEDULE C"
  
    INSTINET CLEARING ARRANGEMENTS    
    

Instinet
settles all transactions on a fully disclosed basis through its affiliate, Instinet Clearing Services, Inc. ("ICS"). With respect to U.S. securities, ICS is a direct participant of the
Depository Trust and Clearing Corporation ("DTCC"). ICS's Broker Clearing Number at DTCC is                        . Trade
comparison and clearance are accomplished via the services and standards established
within the scope of the DTCC processes for U.S. securities deemed by the DTCC as either eligible or non-eligible for book entry settlement. 

With
respect to foreign securities, such securities will be cleared and settled in either the native country of such security and/or through external depositories recognized by Instinet. Settlement
will be on a delivery versus payment basis in the appropriate foreign currency with agents and/or affiliates as designated by ICS. 

 
 

Mutual Services Agreement dated March 27, 2001
  "SCHEDULE D"
  
    ENTITY CLEARING ARRANGEMENTS    
    

 
 

ADDENDUM TO MUTUAL SERVICES AGREEMENT
  For Mutual Provision of TERMINAL SERVICES    

        This
Addendum shall serve to amend the Mutual Services Agreement (the "Agreement") dated March 27, 2001 by and between Instinet Corporation, a Delaware corporation with
offices at 3 Times Square, New York, New York, 10036 ("Instinet") and Archipelago, L.L.C., an Illinois limited liability company with offices at 100 South Wacker Drive, Suite 2000, Chicago, IL
60606("ENTITY"), in the manner set forth herein. 

        Each
of Instinet and ENTITY individually and collectively may be referred to as "Party" and "Parties." All capitalized terms used herein without specific definition shall have the
meanings ascribed to them in the Agreement. 

 
 

RECITALS    

        WHEREAS,
Instinet and ENTITY have entered into the Agreement which allows each of Instinet and ENTITY the ability to execute against orders directly on the other Party's System to
purchase or sell securities (i.e. hit or take) where such orders have been published in and are part of the quotation montage of the Nasdaq Stock Market ("Nasdaq"), and are available for execution at
the time of acceptance on Nasdaq's SelectNet Service (or any successor service). 

        WHEREAS,
Instinet and ENTITY each desires to receive additional services via the other Party's terminal which provides the ability to access the other Party's System (each a "Terminal"),
including the ability to enter orders to buy and sell securities, subject to the terms and conditions set forth herein (the "Terminal Services"); 

        NOW
THEREFORE, in consideration or the foregoing premises, which are a part hereof, and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree to amend the Agreement as follows: 

 
 

TERMS AND CONDITIONS    

1.    Equipment Installation

	a)
	In
addition to the Services provided under the Agreement, each of Instinet and ENTITY shall install one or more Terminals at the other Party's premises as set forth in Schedule One
attached hereto (each a "Location"). Each acknowledges and agrees that the Terminals so installed remain the sole and exclusive property of Instinet and ENTITY, respectively.

	b)
	Each
of Instinet and ENTITY shall arrange for the installation of any telecommunications equipment and/or lines at its premises to accommodate receipt of the other Party's Terminal.
And, each Party shall connect and install any equipment and/or software (the "Equipment") as appropriate at the other Party's Location for connection of the Terminal to its System.

	c)
	Each
of Instinet and ENTITY shall, at its own expense, provide the necessary space, electrical service, outlets and wiring (in accordance with UL Standards) at its Location(s) for the
installation of the other Party's Terminal and Equipment.

	d)
	Each
of Instinet and ENTITY agree not to move, manipulate or otherwise modify or attempt to modify the other Party's Terminal or Equipment from its Location as installed by the other
Party, without the prior written consent and supervision of the other Party, for which supervision the receiving Parry may he charged at the other Party's then-current rates for such
installation and/or supervision. 

2.    Equipment Location:

	a)
	Each
of Instinet and ENTITY hereby agrees, represents and warrants that each of its Locations listed in Schedule One hereto is a business location of the Party under direct supervision
of that 

Party,
and that it is authorized to utilize the other Party's Terminal Services and otherwise to conduct a securities business at these Locations in compliance with all applicable federal and state
laws, and applicable rules and regulations of any self-regulatory organizations including any national securities exchanges or securities associations. 

	b)
	Each
Party represents that, to the extent required by applicable law or regulation, its Location is a properly registered branch office or principal place of business.

	c)
	Each
Party agrees, represents and warrants that it will lake reasonable steps to prevent unauthorized third party (or internal) use of or access to the Terminal, Equipment, and
Terminal Services accessed thereby. 

3.    Client ID Numbers

	a)
	Each
of Instinet and ENTITY will assign unique and specific identification numbers or other identifier to the other Party (the "IDs") to authenticate the other Party to its System.

	b)
	Each
of Instinet and ENTITY shall be solely responsible and liable for all trading and all other activity of any type conducted through the use of its assigned IDs.

	c)
	Each
of Instinet and ENTITY agrees that it is solely responsible for the safeguarding, security, and confidentiality of any IDs assigned to it by the other Party.

	d)
	The
Terminal IDs assigned to each Party are set forth in Schedule One attached hereto. 

4.    Use of Equipment

	a)
	Each
of Instinet and ENTITY hereby agrees, represents and warrants that with respect to the other Party's Terminal and Equipment, and the Terminal Services accessed thereby: each shall
be the sole authorized user of the Terminal, Equipment and Terminal Services; each shall take all reasonable steps to prevent unauthorized third-party (or internal) use of, or access to, the other
Party's Terminal and Equipment; and each shall be solely responsible for all acts or omissions that occur using the other Party's Terminal and Equipment. The Parties further agree, represent, and
warrant that no other person or entity shall receive, in any form, the other Party's Terminal Services provided to it, except as set forth in the Addendum or otherwise specifically agreed to in
advance and in writing.

	b)
	Each
of Instinet and ENTITY are prohibited from (i) combining, transmitting, broadcasting, disseminating, or creating electronic or other databases with any information obtained
through the Terminal, Equipment or the Terminal Services accessed thereby, (ii) making any alteration, connection or interface with or to the Terminal or Equipment or the Terminal Services
accessed thereby; (iii) using batch processing, uploading of files or any other means of automated, high speed or mass data entry into the materials; or (iv) otherwise sharing the other
Party's Terminal, Equipment and Terminal Services provided thereby, or any information contained therein or derived therefrom, with any third party without the prior written consent of the other
Party.

	c)
	If
Instinet and/or ENTITY, each in its own discretion, determines that the other Party must maintain a certain "Order Quality" with respect to orders submitted using a Terminal(s),
then Instinet and ENTITY shall mutually agree on the definition and level of such Order Quality for orders submitted through the other Party's System. "Order Quality" shall be defined in terms of the
tradability of an order based on a metric measuring size, price in-lineness and duration on the other Party's System.

	d)
	Each
of Instinet and ENTITY agrees to utilize the other party's Terminal, Equipment and Terminal Services in the normal course of its business and within the capacity of the other
Party's System. Should Instinet or ENTITY, each in its sole discretion, determine that the other Party's use of its Terminal, Equipment and Terminal Services is extraordinary and/or beyond its normal
system capacity, the Party shall have the right, power and authority to suspend or terminate the other Party's access to its Terminal, Equipment and Terminal Services immediately upon oral or 

other
notification to the other Party occurring prior to, simultaneously with, or immediately after such termination. 

5.    Training

	a)
	At
the other Party's request, each of Instinet and ENTITY shall provide reasonable training to the other Party in the proper use of the Terminal and Equipment, to specific employees of
the other Party. Instinct and ENTITY each agree to reimburse the other for the cost of any such training at the other Pliny's standard rates for such training. Each of Instinet and ENTITY agrees,
represents and warrants that only appropriately-trained employees will use or have access to the other Party's Terminal and Equipment and the Terminal Services accessed hereby.

	b)
	Each
of Instinet and ENTITY further agrees, represents and warrants that all employees that will use or have access to the other Party's Terminal. Equipment and the Terminal Services
accessed thereby, shall be fully familiar with its obligations under this Addendum and the Agreement, and each shall supervise and monitor it, receipt of and use of the other Party's Terminal,
Equipment and Terminal Services. Instinet and ENTITY shall have the right, each in its sole discretion, to prohibit any of the other Party's employees from using or having access to its Terminal,
Equipment and the Terminal Services accessed thereby by providing written or oral notice to the other Party of the identity of such individual. Instinet and ENTITY shall take appropriate steps to
immediately terminate such individual's use of and access to the other Party's Terminal, Equipment and Terminal Services. 

6.    Equipment Maintenance

	a)
	Each
of Instinet and ENTITY will use reasonable efforts to maintain its Terminal and Equipment issued to the other in good working order, and each shall repair at its own cost, any
mechanical or other Terminal or Equipment failures that interfere with the other Party's use of the Terminal Services except for those failures that may
be caused by the other Parry's negligence or misuse of the Terminal or Equipment, for which it shall charge the other Party in accordance with the maintenance charges set forth in Schedule One,
attached hereto and incorporated herein.

	b)
	Each
of Instinet and ENTITY agrees to permit representatives of the other Party access to the Location and its Terminal and Equipment at reasonable times and upon reasonable prior
notice for purposes of installation, inspection, maintenance, repair, replacement or removal of such Terminal and Equipment. Instinet and ENTITY will each exercise reasonable care in its use of the
other Party's Terminal and Equipment and shall take reasonable steps to protect the Terminal and Equipment from any unauthorized use and physical harm. Each of Instinet and ENTITY shall not permit
maintenance, repair, or modification of the other Party's Terminal, Equipment or Terminal Services accessed thereby, by a party other than the other Party or the other Party's representative. 

7.    Payment  

	a)
	Each
of Instinet and ENTITY shall pay the other Party for the receipt and use of the Other Party's Terminal, Equipment and Terminal Services accessed thereby in accordance with the
terms of the Agreement, this Addendum and Schedules One, Two and Three respectively, attached hereto and incorporated herein.

	b)
	Each
of Instinet and ENTITY, in its sole discretion, may change or amend the payment terms contained in Schedules One, Two and Three at any time upon ten (10) days prior written
notice. Each of Instinet and ENTITY acknowledges and agrees that its continued receipt or use of the other Party's Terminal, Equipment and Terminal Services accessed thereby, beyond ten
(10) calendar days after its receipt from the other Party of written notice of such change or amendment, is fully subject to any such change or amendment. 

8.    Reverse Engineering  

        Each
of Instinet and ENTITY agrees, represents and warrants that it shall not, nor shall it permit any third party to, modify, translate, reverse engineer, decompile, dissemble or
extract, as applicable, any ideas, algorithms or procedures from the whole or any part of the other Party's Terminal, Equipment and Terminal Services accessed thereby, for any reason. Instinet and
ENTITY each shall include this restriction in any relevant agreements with third parties, (including but not limited to license agreements and consulting agreements) relating to the other Party's
Terminal, Equipment and Terminal Services accessed thereby, that are otherwise permitted under this Addendum and the Agreement. 

9.    Crossing Services  

        If either Instinet and/or ENTITY accesses the other Party's Crossing Services as part of the Terminal Services via the Terminal and Equipment. Instinet and ENTITY
each acknowledges and agrees that the other Party has the right power and authority, which it may exercise in its sole discretion, to cancel trading through its crossing services in any stock at any
time. 

10.    Termination  

	a)
	Either
Instinet or ENTITY may terminate this Agreement, at any time, each in its sole discretion upon ten (10) calendar days prior written notice.

	b)
	This
Addendum shall automatically terminate on the occurrence of termination of the Agreement in accordance with Section 17 thereof. 

11.    Miscellaneous  

	a)
	Except
as specifically referenced in this Addendum, all terms and conditions of the Agreement shall remain in full force and effect.

	b)
	Unless
specifically addressed in this Addendum, all terms and conditions of the Agreement shall govern ENTITY's and Instinet's use of the other Party's Terminal Services. 

	INSTINET CORPORATION	 	ARCHIPELAGO, L.L.C.
	

By:	
 	

/s/  JOAN WHITE      
	
 	

By:	
 	

/s/  MIKE CORMACK      

	Name: Joan White	 	Name: Mike Cormack
	Title:	 	Title: President
	Date:	 	Date: 4/19/01

 
 

Addendum to Mutual Services Agreement dated March 27, 2001
  
    "SCHEDULE ONE"
  
    LOCATION OF EQUIPMENT & EQUIPMENT CHARGES    
    

            •    Instinet Corporation Terminal Services issued to:

	

Entity:	
 	

    
	
 	

 
	

Address:	
 	

    
	
 	

 
	

Address:	
 	

    
	
 	

 

        The Terminal Services permit internal, registered end-users to place orders directly on Instinet's Book. 

	

Id#	
 	

    
	
 	

(Workstation/OMS) located at	
 	

    

	

Id#	
 	

    
	
 	

(Workstation/OMS) located at	
 	

    

	 
	 	 
	 	One-Time

Installation Charge
	 	Monthly Charges

	a)	 	Instinet Terminal	 	[***]	 	[***]
	b)	 	Instinet Keyboard	 	[***]	 	[***]
	c)	 	Instinet Printer	 	[***]	 	[***]
	d)	 	Maintenance	 	[***]	 	[***]
	e)	 	Transaction Charges (as per Schedule Two)	 	 	 	 
	

 	
 	

•    ENTITY Terminal Services issued to:	
 	

 	
 	

 
	

 	
 	

Instinet Corporation

3 Times Square

New York, NY 10036	
 	

 	
 	

 

	Id#	 	    
	 	(Workstation/OMS) located at	 	    

	

Id#	
 	

    
	
 	

(Workstation/OMS) located at	
 	

    

	 
	 	 
	 	One-Time

Installation Charge
	 	Monthly Charges

	a)	 	Entity Terminal	 	[***]	 	[***]
	b)	 	Entity Keyboard	 	[***]	 	[***]
	c)	 	Entity Printer	 	[***]	 	[***]
	d)	 	Maintenance	 	[***]	 	[***]
	e)	 	Transaction Charges (as per Schedule Three)	 	 	 	 

        ***
Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

 
 

Addendum to Mutual Services Agreement dated March 27, 2001    
    
    "SCHEDULE TWO"
  
    INSTINET CORPORATION: TRANSACTION CHARGES FOR USE OF THE
  TERMINALS AND EQUIPMENT    
    

        Monthly Schedule of Transaction Fees for trades executed with Instinet via an Instinet Workstation or QMS Terminal (this table does nor apply direct hit or take
access via FIX): 

OTC Trades (monthly rates):  

	Shares [***]
 
	 	Cents Per Share

	[***]	 	[***]

[***]

[***]

[***]

Share Volume Calculation:

[***]

Listed Trades (monthly rates)

[***]

Shares Routed Through DOT:

[***] 

Stocks Priced Under $3.00 (Penny Stocks)

[***] 

Reduction or Elimination of Monthly Fees:

[***]

***
Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

 
 

Addendum to Mutual Services Agreement dated March 27, 2001
  
    "SCHEDULE THREE"
  
    ENTITY: TRANSACTION CHARGES FOR USE OF THE
  TERMINALS AND EQUIPMENT    
    

        Monthly Schedule of Transaction Fees for trades executed with ENTITY via: 

 
 

MUTUAL SERVICES AGREEMENT ADDENDUM No. 2    
    

This  MUTUAL SERVICES AGREEMENT ADDENDUM No. 2 (this "Addendum") to the Mutual Services Agreement dated March 27, 2001 by and between
Instinet Corporation ("Instinet") and Archipelago L.L.C. ("Entity") is entered into as of April 30, 2002, and is hereby attached to and made part of the Mutual Services Agreement. Instinet and
Entity are sometimes referred to individually as a "Party" and collectively as the "Parties." All capitalized terms not specifically defined in this Addendum shall have the meanings ascribed them in
the Mutual Services Agreement. The Mutual Services Agreement collectively with this Addendum may be referred to as the "Agreement" 

 
 

TERMS AND CONDITIONS    
    

        In consideration of the premises contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
Parties agree to supplement the Agreement as follows: 

        1.     For
purpose of the Agreement, Instinet's "BookStream Services" shall mean certain orders which comprise Instinet's delivered depth of book in certain market securities
(OTC and Listed). The BookStream Services are provided for display purposes only. For purposes of the Agreement, all references to the Instinet Services shall be deemed to include the BookStream
Services. 

        2.     Instinet
has created specifications for the BookStream Services which may be updated by Instinet from time to time (collectively, the "BookStream Specifications").
Instinet is willing to grant Entity, and Entity desires to obtain, a limited, non-exclusive and non-transferable license to use the BookStream Specifications for the sole
purpose of developing an interface to the BookStream Services, subject to the terms and conditions contained in the Agreement. For purposes of the Agreement, the BookStream Specifications shall be
deemed to be included in the Instinet Specifications and the interface to the Bookstream Services shall be included in the Interfaces. 

        3.     For
purposes of the Agreement, the "Entity Book Service" shall mean: information consisting of U.S. equities traded via Archipelago electronic crossing network, including
bids to buy, offers to sell, and last sale data including price, change and volume, as reflected in Archipelago's electronic limit order book, and may include similar Data from additional third-party
ECNs integrated into the Archipelago trading system. All references to Entity's Services in the Agreement shall be deemed to include the Entity Book Service. 

        4.     ENTITY
has develop specifications (the "Entity's Book Specifications") for the development of an interface to the Entity Book Service. Entity is willing to grant
Instinet, and Instinet desires to obtain, a limited, non-exclusive and non-transferable license to use the Entity Specification for the sole purpose of developing an interface
to the Entity Book Service, subject to the terms and conditions contained in the Agreement. For purposes of the Agreement, Entity's Book Specifications shall be deemed to be included in the Entity
Specifications and the interface to the Entity Book Services shall be included in the Interfaces. 

        5.     Instinet
shall deliver the BookStream Services to Entity in the manner described in Schedule A (1) BookStream
Delivery System (the "Instinet Delivery System") attached hereto and incorporated herein. Entity shall deliver the Entity Book Services to Instinet in the manner described in  Schedule A (2) Entity
Book Services Delivery System (the "Entity Delivery System") attached hereto and incorporated herein. 

        6.     Entity
and Instinet shall test and provide access to the other's Services in accordance with the terms and conditions of the Agreement. 

        7.     Entity
agrees, represents and warrants that is shall not, and it shall not knowingly permit any other party to, reproduce, redistribute or otherwise redisseminate in any
way the BookStream Services or any portion thereof, except as expressly permitted in writing by Instinet and shall not change the content or value of the BookStream Services or any portion thereof in
any way, nor recompile, aggregate, disaggregate or combine the BookStream Services or any portion thereof in any way. 

        8.     Instinet
agrees, represents and warrants that it shall not, and it shall not knowingly permit any other part to reproduce, redistribute or otherwise redisseminate in any
way the [Book Services] or any portion thereof, except as expressly permitted in writing by Entity and shall not change the content or value of the Entity Book Services or any
portion thereof in any way, nor recompile, aggregate, disaggregate or combine the Entity Book Services or any portion thereof in any way. 

        9.     Instinet
shall retain sole ownership of the BookStream Services, including all Intellectual Property rights (as defined herein) subsisting in or relating to the
BookStream Services. Intellectual Property shall include, but not be limited to: (a) trademarks, service marks, logos, slogans, brand names, domain names, certification marks, trade dress,
trade names, words, symbols and other indications of origin and the goodwill associated therewith, and all registrations of and renewal or extensions of the foregoing; (b) software, original
works of authorship, copyrights and all renewals and translations thereof and any moral rights relating thereto; and (c) patents, utility models, industrial design, inventors' certificates and
inventions. All goodwill arising from the use of the Instinet Marks and the Instinet Logo shall inure to the benefit of Instinet. Except as expressly contained herein, nothing shall be construed as
granting or conferring any rights by license or otherwise to Entity or any third party to the BookStream Services or any other Intellectual Property or Confidential Matter of Instinet. 

        10.   Entity
shall retain sole ownership of the Entity Book Services, including all Intellectual Property rights (as defined herein) subsisting in or relating to the Entity
Book Services. Intellectual Property shall include, but not be limited to: (a) trademarks, service marks, logos, slogans, brand names, domain names, certification marks, trade dress, trade
names, words, symbols and other indications of origin and the goodwill associated therewith, and all registrations of and renewals or extensions of the foregoing; (b) software, original works
of authorship, copyrights and all renewals and translations thereof and any moral rights relating thereto; and (c) patents, utility models, industrial designs, inventors' certificates and
inventions. All goodwill arising from the use of the Entity Marks and the Entity Logo shall inure to the benefit of Instinet. Except as expressly contained herein, nothing shall be construed as
granting or conferring any rights by license or otherwise to Instinet or any third party to the Entity Book Services or any other Intellectual Property or Confidential Matter of Entity. 

        11.   All
terms and conditions of the Agreement will remain in full force and effect between Entity and Instinet, and Instinet and Entity hereby ratify and affirm the terms
and conditions of the Agreement. 

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

        IN WITNESS WHEREOF, authorized officers of the undersigned have caused this Entity Interface Agreement Addendum to be duly executed on
their behalf, as of the day and year first written above. 

	INSTINET CORPORATION	 	ARCHIPELAGO L.L.C.
	

By:	
 	

/s/  CHRISTY COOK      
	
 	

By:	
 	

/s/  MIKE CORMACK      

	Name: Christy Cook	 	Name: Mike Cormack
	Title Director	 	Title: President

 
 

SCHEDULE A(2)    
    
    Interim FIX 4.0/4.1 API for Archipelgo Book    
    

	Ryan Pierce	 	Copyright © 1997-9 Townsend Analytics Ltd.
	November 17, 1999 Revision	 	 

Overview  

        This document describes the Townsend Analytics Ltd. Implementation of the FIX Protocol's draft Market Data messages used to disseminate the Archipelago
ECN's book. 

        This
document assumes a thorough understanding of the FIX 4.0 or 4.1 protocol available at http://www.fixprotocol.org/ as well as the
Market Data Messages draft, dated November 17, 1999. 

        This
is an interim implementation of a draft specification that is scheduled for inclusion in the FIX 4.2 Specification. The FIX Technical Committee has read the draft once and made
comments, as well as assigned message types and field tags, but this does not mean that the Market Data draft will not change prior to inclusion in FIX 4.2. The Market Data draft carries the following
disclaimer: 

This
is a FIX Technical Committee Working Draft for review by FIX Committee and Working Group members and interested parties. It is a draft document and may be updated, replaced, or obsoleted by
other documents at any time. The ECNs and Exchanges Working Group will not allow early implementation to constrain its ability to make changes to this specification prior to final release. It is
inappropriate to use FIX Technical Committee Working Drafts as reference material or to cite them as other than "works in progress". 

        The
Archipelago FIX Book Server will likely be kept recent relative to the latest working draft, and it is expected that early adopters of the FIX Market Data Specification do so as
well. 

FIX
4.0/4.1 API for Archipelago
Book                                         
                                          
             11/17/99 Revision
 

FIX Application Protocol  

        The FIX session used to disseminated the Archipelago book is dedicated to this purpose; it cannot be used for orders or trade reports. The only application
messages sent form Archipelago to the client are Market Data—Incremental Refresh, MsgType=X. The messages are sent unsolicited; the client must not send a Market Data Request. Thus, the
Market Data messages from Archipelago to the client will have no MDReqID. 

        After
Logon, Archipelago will send all orders currently in its book, as well as any additions, changes or deletions of them. Each order is represented by its own MDEntryID, which is
unique among all currently live orders. As stated in the draft, an MDEntryID of a previously deleted entry may be reused, and Archipelago does this. At the client's request, MDEntryTime can be
specified with each MDEntry; the default is not to send the MDEntryTime as it consumes additional bandwidth. Only bids and offers are sent; no records of trades, opening, or closing prices are sent.
Orders preferenced to other ECNs or Market Makers are not sent via FIX, as they do not represent available liquidity in the ECN. 

        The
recovery model for unsolicited Market Data is purposefully left open in the Market Data draft specification so that firms can implement approaches that best meet the business needs
of their clients. The recovery model for the Archipelago FIX Book Server is based on providing the client with an up to date view of the current state of the Archipelago Book as quickly as possible.
Thus, we do not store or transmit any historical data for periods when clients are disconnected. If a client becomes disconnected, the client must invalidate and discard all Archipelago MDEntries and
reconnect. The
Archipelago FIX Book Server will begin by sending MDEntries for all orders currently in the Archipelago book, and then any changes to the book. 

	Copyright© 1997-9 Townsend Analytics Ltd.

Proprietary and Confidential	 	Page 2 of 3

FIX
4.0/4.1 API for Archipelago
Book                                         
                                          
             11/17/99 Revision 

FIX Session Protocol  

        The client will initiate a TCP connection to a server IP address and port specified by Archipelago. Both FIX 4.0 and FIX 4.1 are supported, however this must be
configured in advance. The CompID of Archipelago is "TAL" and the CompID of the client must be configured in advance. 

        Due
to the specialized nature of transmitting book data, The Archipelago FIX Book Server does not support the full FIX session protocol.
One critical distinction is that Resend Requests to Archipelago are rejected. This happens because Archipelago begins each FIX connection with the state of the current book and does not support
historical queries, hence Resend Request to recover lost messages become irrelevant. 

        Due
to this recovery design, the rigidity in the standard session layer regarding sequence numbering should be relaxed. The Archipelago FIX Book Server begins each day with a sequence
number of 1, and keeps incrementing it. If the client disconnects and reconnects, Archipelago will send its Logon
with the next consecutive sequence number. The Archipelago FIX Book Server will accept a Logon from the client, regardless of sequence number, and begin incrementing the next expected sequence number
from there, without attempting to send Resend Requests. It is required that the client similarly accept a Logon with any sequence number from the Archipelago FIX Book Server will reject such Resend
Requests. 

        Like
a standard FIX session, Archipelago will send heartbeats at an interval of 30 seconds of inactivity, as stated in Archipelago's Logon message, and will require the client to issue
sequential heartbeats at the interval the client specifies in the client's Logon message. 

Revision History  

	11/4/1999	 	Initial Release
	

11/17/1999	
 	

Updated the document with the latest status of the draft, which includes using real message types and field tags.

	Copyright© 1997-9 Townsend Analytics Ltd.

Proprietary and Confidential	 	Page 3 of 3

 
 

MUTUAL SERVICES AGREEMENT ADDENDUM NO. 3    
    

        This MUTUAL SERVICES AGREEMENT ADDENDUM NO. 3 (this "Addendum No. 3") to the Mutual Services Agreement
dated March 27, 2001 and as amended on April 15, 2002, by and between Instinet Corporation ("Instinet") and Wave Securities, L.L.C., formerly known as Archipelago, L.L.C. ("Entity") is
entered into as of May 31, 2002, and is hereby attached to and made part of the Mutual Services Agreement. Instinet and Entity are sometimes referred to individually as a "Party" and
collectively as the "Parties." All capitalized terms no specifically defined in this Addendum No. 3 shall have the meanings ascribed them in the Mutual Services Agreement and/or Addendum
No. 2. The Mutual Services Agreement collectively with Addendum No. 2 and this Addendum No. 3 may be referred to as the "Agreement." 

 
 

TERMS AND CONDITIONS    
    

        In consideration of the premises contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
Parties agree to supplement the Agreement as follows: 

	1.
	For
purposes of the Agreement, Listed Orders shall be included in the Instinet Services. Therefore, Section 3(a) of the Agreement shall be amended to include the following:

	

	For
purposes of this Agreement, the Instinet Services shall also include the ability to execute Listed Orders where "Listed Orders" shall be defined as
orders available to Instinet clients in securities listed on the New York and American Stock Exchanges (or other regional exchanges) where Instinet includes such orders in Instinet's delivered top of
book.

	2.
	For
purposes of the Agreement, listed orders shall be included in the Entity's Services. Therefore, Section 3(b) of the Agreement shall be amended to include the following:

	

	For
purposes of this Agreement, Entity's Services shall also include the ability to execute Listed Orders where "Listed Orders" shall mean orders available
to Entity clients in securities listed on the New York and American Stock Exchanges (or other regional exchanges) where Entity includes such orders in Entity's delivered top of book.

	3.
	In
addition, for purposes of clarification, the Parties agree that whenever a Party executes a trade, that Party is responsible for reporting such trade.

	4.
	The
Share Volume/Price Per Share in Schedule A to the Agreement (Schedule of Charges and Location of Equipment for the Instinet Services) is hereby amended to include Listed
Orders as follows: 

	Share Volume
 
	 	Price per Share

	LISTED	 	 
	[***]	 	[***]

	5.
	The
Share Volume/Price Per Share in Schedule B to the Agreement (Schedule of Charges and Location of Equipment for the Entity Services) is hereby amended to include Listed
Orders as follows: 

	Share Volume
 
	 	Price per Share

	LISTED	 	 
	[***]	 	[***]

***
Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

	6.
	All
terms and conditions of the Agreement will remain in full force and effect between entity and Instinet, and Instinet and Entity hereby ratify and affirm the terms and conditions of
the Agreement.

	7.
	This
Addendum may be executed in one or more counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument. 

        IN WITNESS WHEREOF, authorized officers of the undersigned have caused this Mutual Services Agreement Addendum to be duly executed on
their behalf, as of the day and year first written above. 

	INSTINET CORPORATION	 	Wave Securities, L.L.C.
	

By:	
 	

          
	
 	

By:	
 	

/s/  MIKE CORMACK      

	Name:	 	Name: Mike Cormack
	Title:	 	Title: President

QuickLinks

MUTUAL SERVICES AGREEMENT

WITNESSETH

TERMS AND CONDITIONS

Mutual Services Agreement dated March 27, 2001 "SCHEDULE A" SCHEDULE OF CHARGES AND LOCATION OF EQUIPMENT FOR THE INSTINET SERVICES

"SCHEDULE B" SCHEDULE OF CHARGES AND LOCATION OF EQUIPMENT FOR THE ENTITY SERVICES

Mutual Services Agreement dated March 27,2001 "SCHEDULE C" INSTINET CLEARING ARRANGEMENTS

Mutual Services Agreement dated March 27, 2001 "SCHEDULE D" ENTITY CLEARING ARRANGEMENTS

ADDENDUM TO MUTUAL SERVICES AGREEMENT For Mutual Provision of TERMINAL SERVICES

RECITALS

TERMS AND CONDITIONS

Addendum to Mutual Services Agreement dated March 27, 2001 "SCHEDULE ONE" LOCATION OF EQUIPMENT & EQUIPMENT CHARGES

Addendum to Mutual Services Agreement dated March 27, 2001 "SCHEDULE TWO" INSTINET CORPORATION: TRANSACTION CHARGES FOR USE OF THE TERMINALS AND EQUIPMENT

Addendum to Mutual Services Agreement dated March 27, 2001 "SCHEDULE THREE" ENTITY: TRANSACTION CHARGES FOR USE OF THE TERMINALS AND EQUIPMENT

MUTUAL SERVICES AGREEMENT ADDENDUM No. 2

TERMS AND CONDITIONS

SCHEDULE A(2) Interim FIX 4.0/4.1 API for Archipelgo Book

MUTUAL SERVICES AGREEMENT ADDENDUM NO. 3

TERMS AND CONDITIONSEXHIBIT 10.3

 

LICENSE AGREEMENT

 

LICENSE AGREEMENT, dated as of January 7, 1999 (the “Effective
Date”), by and between ARCHIPELAGO HOLDINGS, L.L.C., a Delaware limited
liability company with its principal offices located at 100 South Wacker Drive,
Suite 2060, Chicago, IL 60606, and TOWNSEND ANALYTICS, LTD., an Illinois
corporation with its principal offices located at 100 South Wacker Drive, Suite
2040, Chicago, Illinois 60606 (“TAL”).

 

WITNESSETH:

 

WHEREAS, Archipelago Holdings, L.L.C., through its Affiliates, will
operate an “electronic communications network” (“ECN”) as contemplated by the
Limited Liability Company Agreement of Archipelago Holdings, L.L.C.;

 

WHEREAS, TAL has developed certain software for operating an ECN and
Archipelago Holdings, L.L.C. desires to use such software;

 

WHEREAS, TAL is willing to license such software to Archipelago and
Archipelago is willing to accept such license, pursuant to the terms and
subject to the conditions set forth below;

 

NOW, THEREFORE, in consideration of the promises and mutual covenants
contained herein, as well as good and valuable consideration, including $10.00
paid to TAL, the receipt of which is hereby acknowledged, Archipelago Holdings,
L.L.C. and TAL hereby agree and contract with one another as follows:

 

ARTICLE I

 

DEFINITIONS

 

1.1           DEFINITIONS.
For the purpose of this License Agreement, the following terms shall have the
following meanings:

 

“Affiliate” shall mean with respect to any Person (i) any other Person
that directly or indirectly through one or more intermediaries controls or is
controlled by or is under common control with such Person, (ii) any other
Person owning or controlling 25% or more of the outstanding voting securities
of or other ownership interests in such Person or (iii) any officer, director,
manager or partner of such Person.

 

“Archipelago” means Archipelago Holdings, L.L.C., a Delaware limited
liability company that is the signatory to this License Agreement and all
Affiliates of Archipelago Holdings, L.L.C. existing as of the Effective Date or
any entity that shall in the future become an Affiliate of Archipelago
Holdings, L.L.C.

 

“Archipelago Materials” means any hardware, software, firmware,
databases,

 

 

platforms or other materials used to operate the Software except
software specifically developed by TAL.

 

“Archipelago Subscriber” means any Person who is subscribing or will
subscribe to the Services, as defined below, of Archipelago on the Effective
Date of this License Agreement or thereafter.

 

“Business Day” means any day other than a Sunday or a day on which
banking institutions in Chicago, Illinois are authorized or obligated by law,
regulation or executive order to be closed.

 

“Development” means any fix, update, upgrade, development, improvement
or modification of the Software, including new versions and new releases,
resulting from a request from Archipelago pursuant to the Support Agreement.

 

“Documentation” means all written or electronically recorded materials
prepared by or on behalf of TAL relating to the Software, including all
Functional Specifications and Technical Specifications.

 

“ECN” means an electronic communications network, as such term is
defined in Rule 11Ac1-1(a)(8) under the Securities Exchange Act of 1934, as
amended (the “Exchange Act”). Although the ECN to be operated by Archipelago
will initially be limited to handling Nasdaq securities, for purposes of this
License Agreement it is assumed that Archipelago’s ECN may in the future be
expanded to handle exchange-listed securities as well. In addition, if ECNs are
in the future permitted, and Archipelago’s ECN elects, to operate, register and
be regulated as an “exchange” within the meaning of Section 3(a)(1) of the
Exchange Act, this License Agreement will continue to apply to Archipelago’s
ECN if and when it becomes registered as an exchange.

 

“Enhancements” means fixes, updates, upgrades, developments,
improvements or modifications of the Software, including new versions and new
releases, or any part thereof, developed by TAL or it Affiliates independently
of any request by Archipelago for a Development under the Support Agreement or
otherwise acquired by TAL or its Affiliates during the term of the Support
Agreement.

 

“Functional Specifications” means the operational capabilities of the
Software and the Enhancements thereto.

 

“Governmental Body” means any supranational body or organization,
country or government (federal, state, local, or foreign), any governmental or
regulatory body thereof, any political subdivision thereof, any agency,
instrumentality or authority thereof, any self-regulatory organization the
rules and regulations of which are enforceable by law (including any such
securities, futures or commodity exchange), or any court of competent
jurisdiction.

 

“Intellectual Property Right” means any patent, copyright, trademark,
service mark (and any application or registration respecting the foregoing),
trade secret, know-how and other intellectual property right of any type.

 

1

 

“License Agreement” means this License Agreement.

 

“Object Code” means the computer readable code for the Software and
Enhancements, which has been translated by a compiler for execution on
Archipelago’s computer.

 

“Person” shall mean an individual, corporation (including any
non-profit corporation), association, general or limited partnership,
organization, business, firm, limited liability company, joint venture, trust,
estate, or other entity, association or organization, whether constituting a
separate legal entity or not.

 

“Services” means the services provided by Archipelago to Archipelago
Subscribers.

 

“Software” means the software developed by or on behalf of TAL or its
Affiliates that is used to operate the business of Archipelago, together with
any Enhancements or Developments thereto developed, licensed or acquired by TAL
or its Affiliates. Specific components of the Software are listed on
Schedule A hereto.

 

“Source Code” means the form of code for the Software, which is human
readable and which can be translated by a compiler for execution on
Archipelago’s computer.

 

“Subscriber Agreement” means the agreement that an Archipelago
Subscriber may execute in order to utilize the Service.

 

“Support Agreement” means the Support, Development and Enhancement
Agreement dated as of the Effective Date between TAL and Archipelago.

 

“Technical Specifications” means the technical specifications
developed, licensed or acquired by or on behalf of TAL or its Affiliates for or
in connection with the Software.

 

 

ARTICLE II

 

LICENSE

 

2.1           SOFTWARE
LICENSE. TAL hereby grants to Archipelago a royalty free, worldwide, perpetual,
nontransferable (except as provided herein), exclusive (as provided herein)
license to use, reproduce, display, distribute (as provided in
Section 2.2), modify, enhance and create derivative works of the Software
for any business purpose of Archipelago. Such business purpose may not consist
solely of the distribution of the Software for a fee. Except as specified
herein, such license shall extend to Object Code, Source Code and the
Documentation.

 

2.2           RIGHT
TO SUBLICENSE. TAL hereby grants to Archipelago the right to grant a sublicense
to use the Software, in Object Code only, to any entity that is not an
Affiliate provided that any such sublicense must be in furtherance of a

 

2

 

business purpose of Archipelago. Such business purpose may not consist
solely of the distribution of the Software for a fee.

 

2.3           EXCLUSIVITY
OF LICENSE. TAL agrees that the license granted herein to the elements of the
Software listed on Schedule A and designated as exclusive shall be
exclusive to Archipelago, and that no other license will be granted by TAL or
any of its Affiliates in respect of such Software. The license to all other elements
of the Software listed on Schedule A shall be non-exclusive.

 

2.4           EXCLUSIVE
FIELD OF USE. So long as Archipelago, or a valid transferee of Archipelago’s
rights hereunder, shall operate an ECN or exchange (with the meaning of
Section 3(a)(1) of the Exchange Act or proposed Rule 3a1-1 under the
Exchange Act, as the same may be from time to time be re-proposed, adopted or
amended) or other facility for matching or executing orders that provides for
the trading of equity securities (i) of United States issuers or (ii) of
non-United States issuers whose equity securities are listed for trading on a
United States stock exchange or trade through the NASDAQ system, TAL agrees
that it will not license the Software to any other Person for such purpose or
use the Software itself for such purpose. This exclusive field of use does not
extend to the routing of orders for the securities described above to other
execution points.

 

2.5           TRANSFER
OF LICENSE. This License Agreement may only be transferred in a sale of all or
substantially all of the assets of Archipelago or a sale of a majority of the
voting interests of Archipelago provided that, in the case of a sale of all or
substantially all of the assets of Archipelago, such third party must agree to
be bound by the terms of this License Agreement. This License Agreement may not
be sold in any liquidation, foreclosure or insolvency proceeding unless it is
sold with all or substantially all the assets of Archipelago.

 

2.6           OWNERSHIP.
Any modification or enhancement of, or derivative work relating to, the
Software developed by Archipelago or any third party consultants hired by
Archipelago will be the property of Archipelago. Any Enhancements developed or
acquired by TAL will be property of TAL and shall be considered Software under
the License Agreement, and Archipelago shall have the rights to such Software
specified in the License Agreement. Unless otherwise agreed by the Parties at
the time of a request for a Development or thereafter, any Development shall be
the property of TAL and shall be considered Software under the License
Agreement, and Archipelago shall have the rights to such Software as specified
in the License Agreement.

 

2.7           REGULATORY
LICENSES AND PERMISSIONS. Archipelago shall be responsible for obtaining and maintaining
all regulatory licenses, permissions and approvals necessary to operate an ECN.

 

2.8           NECESSARY
EQUIPMENT. Archipelago shall be responsible for providing all hardware and
third party software required to operate the Software, including, but not limited
to the Microsoft Windows operating system and Microsoft SQL Server. If
requested by Archipelago or any of its Affiliates, TAL will provide a list,
which may be modified from time to time, of currently recommended hardware

 

3

 

and software.

 

ARTICLE III

 

DELIVERY OF OBJECT CODE, DOCUMENTATION,

AND SOURCE CODE

 

3.1           OBJECT
CODE AND DOCUMENTATION. TAL has provided to Archipelago the Object Code and all
available Documentation for the Software, and TAL has installed the Object Code
on Archipelago equipment at TAL’s principal office location. Upon Archipelago’s
request, TAL will install from time to time the Software at Archipelago’s
backup location or at any other location designated by Archipelago from time to
time. Archipelago will reimburse TAL for its reasonable out-of-pocket travel
and living expenses, if any, incurred with any such installation.

 

3.2           SOURCE
CODE. TAL shall provide to Archipelago’s Chief Technology Officer the Source
Code for the most current version of the Software. If any changes are made to
the Source Code, TAL shall promptly, but in no event later than two (2)
business days after a request by Archipelago, provide the Source Code for the
Software to Archipelago. TAL will also provide Archipelago all Documentation
relating thereto and with instructions regarding relevant third party compilers
and libraries necessary to compile the Source Code. Archipelago is responsible
for obtaining those compilers and libraries and for ensuring that they are
properly licensed to Archipelago. Upon Archipelago’s request, TAL will promptly
install the Source Code on one or more computers provided by Archipelago that
contain the appropriate compilers and ascertain that the Source Code compiles.
Archipelago will reimburse TAL for its reasonable out-of-pocket travel and
living expenses, if any, incurred with any such installation.

 

 

ARTICLE IV

 

INDEMNIFICATION

 

4.1           INDEMNIFICATION
BY TAL. TAL, at its own expense, shall indemnify and hold harmless Archipelago
and their respective directors, managers, partners, officers, employees,
members, shareholders and agents from and defend any action brought against
same with respect to any claim, demand, cause of action, debt or liability,
including attorneys’ fees, relating to any claim that the Software, including
any Object Code, Source Code or Documentation, used hereunder infringe or
violate any patents, copyrights, trade secrets, licenses or other proprietary
rights of any third party, except to the extent that any such infringement is
due to (i) any Archipelago Materials or (ii) any modifications by a party other
than TAL or one of its Affiliates and other than at the direction of, or
pursuant to instructions from, TAL or one of its Affiliates. In the event of
any such infringement or violation, TAL shall use its best efforts to either
(x) modify or replace infringing portions of the Software with software of
substantially similar functionality, or (y) obtain license(s) for the
infringing portions.

 

4

 

4.2           INDEMNIFICATION
BY ARCHIPELAGO. Archipelago may, in its sole discretion, have Archipelago
Subscribers execute Subscriber Agreements with Archipelago. Such Subscriber
Agreements may include an indemnification in a form approved by TAL, in its
reasonable business judgment, in favor of TAL for claims, demands, causes of
action, debts or liabilities, including attorneys’ fees, arising out of the use
of the Service by the Subscriber. In such cases in which Archipelago does not
obtain a Subscriber Agreement containing such an indemnity, Archipelago, at its
own expense, shall indemnify and hold harmless TAL and its Affiliates, and
their respective directors, partners, officers, employees, shareholders and
agents from and defend any action brought against same with respect to any
claim, demand, cause of action, debt or liability, including attorneys’ fees,
to the extent that it is based on a claim arising out of the use of the Service
by the Subscriber, but such indemnity shall only apply to the extent that such
claim is not due to TAL’s gross negligence or willful misconduct or to any
obligation of TAL to indemnify Archipelago pursuant to Section 4.1.

 

4.3           NOTICE
OF ASSERTED LIABILITY. Promptly after receipt by any party (the “Indemnitee”)
of notice of any claim or the commencement of any action against it in respect
of which indemnity or reimbursement may be sought hereunder (an ‘Assertion”),
such Indemnitee shall promptly give written notice of the Assertion (the
“Claims Notice”) to any other party (or parties) obligated to provide
indemnification pursuant to this Article (the “Indemnitor”), but the
failure to so notify any Indemnitor shall not relieve any Indemnitor of any
liability it may have to the Indemnitee hereunder except to the extent such
Indemnitor has been materially prejudiced thereby. The Indemnitor shall have
the right to assume the defense of such Assertion, at its own expense, with
counsel chosen by the Indemnitor and reasonably satisfactory to the Indemnitee.
Notwithstanding that the Indemnitor may elect to assume the defense of any
Assertion, the Indemnitee shall have the right to participate in the
investigation and defense thereof, with separate counsel chosen by such
Indemnitee, but in such event the fees and expenses of such counsel shall be
paid by such Indemnitee unless (a) the Indemnitor shall have agreed to pay such
fees and expenses, (b) the Indemnitor shall have failed to assume the defense
of such Assertion with counsel reasonably satisfactory to such Indemnitee or
(c) in the reasonable judgment of such Indemnitee, based upon the written
advice of its counsel, a conflict of interest exists between the Indemnitor and
such Indemnitee with respect to such Assertion (in which case, if such
Indemnitee notifies the Indemnitor that such Indemnitee elects to employ
separate counsel, the Indemnitor shall not assume the defense of such Assertion
on behalf of such Indemnitee and shall be obligated to pay the reasonable fees
and expenses of such separate counsel). Notwithstanding anything to the
contrary in this Section, the Indemnitor shall not, without the written consent
of such Indemnitee (which consent shall not be unreasonably withheld or
delayed), settle or compromise any action in any manner that, in the reasonable
judgment of such Indemnitee or its counsel, may adversely affect such
Indemnitee; provided, however, that the Indemnitor may, without the written
consent of the Indemnitee, settle or compromise any action or consent to the
entering of any judgment which is for money damages only and includes as an
unconditional term thereof the

 

5

 

delivery by the claimant or plaintiff to such Indemnitee of a duly
executed written release of such Indemnitee from all liability in respect of
such Assertion, which release shall be satisfactory in form and substance to
counsel to such Indemnitee.

 

ARTICLE V

 

LIMITATION OF LIABILITY

 

5.1           IN
NO EVENT WILL EITHER PARTY BE LIABLE TO THE OTHER FOR SPECIAL, INCIDENTAL,
INDIRECT OR CONSEQUENTIAL DAMAGES, DAMAGES FROM LOSS OF USE, DATA, PROFITS OR
BUSINESS OPPORTUNITIES, OR FAILURE TO ACHIEVE COST SAVINGS, IN CONTRACT, TORT
OR OTHERWISE, EVEN IF EITHER PARTY SHALL HAVE BEEN ADVISED IN ADVANCE OF THE
POSSIBILITY OF SUCH LOSS, COST OR DAMAGES, ARISING OUT OF OR IN CONNECTION WITH
THIS LICENSE AGREEMENT. NOTWITHSTANDING THE FOREGOING, THE LIMITATIONS OF
LIABILITY OF THIS SECTION 5.1 WILL NOT APPLY TO THE INDEMNIFICATION
OBLIGATIONS OF ARCHIPELAGO OR TAL PURSUANT TO ARTICLE IV OR FOR VIOLATIONS
OF ARTICLE VI.

 

ARTICLE VI

 

CONFIDENTIALITY

 

6.1           DISCLOSURE
OF CONFIDENTIAL INFORMATION.

 

(a)           The parties acknowledge that each party (in
such capacity, a “Disclosing Party”) has disclosed or will disclose certain
Confidential Information to the other and its Affiliates (in such capacity, a
“Receiving Party”). For purposes hereof, and subject to the provisions of
Section 6.2, the term “Confidential Information” means (i) the Software
and Documentation, (ii) any information relating to the Disclosing Party or its
Affiliates and designated in writing as confidential, proprietary or marked
with words of like import, (iii) any information relating to the Disclosing
Party or its Affiliates that is orally conveyed, if the Disclosing Party
provides specific written notice that such oral communication shall be deemed
Confidential Information and delivers such writing to the Receiving Party
within ten (10) days of the oral conveyance and (iv) any information that the
Receiving Party should know in its reasonable business judgment is the
Confidential Information of the Disclosing Party.

 

(b)           The Receiving Party acknowledges the
confidential and proprietary nature of the Confidential Information and agrees
not to reveal or disclose any Confidential Information for any purpose (except
as permitted by the second immediately succeeding sentence) to any other Person
who is not an employee, manager, consultant, member or Affiliate of the
Receiving Party, or to use any Confidential Information for any purpose other
than as contemplated hereby, in each case, without the prior written consent of
the Disclosing Party. The

 

6

 

Receiving Party agrees to maintain adequate security procedures and
take reasonable precautions (no less rigorous than the Receiving Party takes
with respect to its own comparable Confidential Information, but, in no event,
less than due diligence and care) to prevent misuse, unauthorized or
inadvertent disclosure or loss of the Confidential Information of the
Disclosing Party. In the event that a Receiving Party wishes to disclose
Confidential Information to one of its professional advisors, consultants,
agents or business partners it may do so only if such third party agrees to
abide by the terms of this Article VI.

 

6.2           EXCLUSIONS.
Notwithstanding anything contained herein to the contrary, Confidential
Information shall not include information which:

 

(a)           at or prior to the time of disclosure by the
Disclosing Party was known to the Receiving Party other than by reason of
unlawful appropriation by the Receiving Party;

 

(b)           at or after the time of disclosure by the
Disclosing Party becomes generally available to the public through no act or
omission on the Receiving Party’s part;

 

(c)           is developed by the Receiving Party
independent of any Confidential Information it receives from the Disclosing
Party;

 

(d)           is received by the Receiving Party from a
third party not known by the Receiving Party not to be free to make such
disclosure without breach of any legal obligation; or

 

(e)           is required to be disclosed pursuant to any
statute, regulation, order, subpoena or document discovery request, provided
that prior written notice of such disclosure is furnished to the Disclosing
Party as soon as practicable in order to afford the Disclosing Party an
opportunity to seek a protective order (it being agreed that if the Disclosing
Party is unable to obtain or does not seek a protective order and the Receiving
Party is legally compelled to disclose such information, disclosure of such
information may be made without liability).

 

6.3           NOTIFICATION
OF PROHIBITED USE OR DISCLOSURE. The Receiving Party shall notify the
Disclosing Party promptly upon discovery of any prohibited use or disclosure of
the Confidential Information, or any other breach of this Article by the
Receiving Party, and shall fully cooperate with the Disclosing Party to help
the Disclosing Party, to the extent practicable, regain possession of the
Confidential Information and prevent the further prohibited use or disclosure
of the Confidential Information.

 

6.4           THIS
LICENSE AGREEMENT. The terms of this License Agreement shall be deemed to be
Confidential Information of both parties but may be disclosed by Archipelago to
its permitted sublicensees and prospective sublicensees who agree

 

7

 

to be bound by the confidentiality provisions of the License Agreement.

 

6.5           COPYRIGHT
NOTICES. The Receiving Party agrees that it will not remove any statutory
copyright notice or evidence of confidentiality contained on or included in the
Confidential Information. The Receiving Party will reproduce any such notice or
evidence on any reproduction of all or any part of the Confidential
Information, and, if requested by the Disclosing Party, will, at the election
of the Receiving Party, either attach such a notice or evidence on any
Confidential Information inadvertently provided without such a notice or
evidence, or return or destroy such Confidential Information.

 

ARTICLE VII

 

REPRESENTATIONS AND WARRANTIES

 

7.1           TAL’S
REPRESENTATIONS AND WARRANTIES. TAL represents and warrants that:.

 

(a)           TAL has the full power and authority to
execute, deliver and perform this License Agreement.

 

(b)           This License Agreement has been duly and
validly authorized, executed and delivered by TAL and constitutes a valid and
binding obligation of TAL enforceable in accordance with its terms.

 

(c)           The execution, delivery and performance by
TAL of this License Agreement as contemplated hereby will not (i) conflict
with, or result in the breach or termination of, or constitute a default under,
any agreement of any kind or any judgment or decree, to which TAL is in any way
bound, except for such conflicts, breaches or defaults as would not, in the
aggregate, have a material adverse effect on the ability of TAL to perform its
obligations under this License Agreement or (ii) constitute a violation by TAL
of any applicable law or regulation of any Governmental Body, or any rule or
written policy of any industry association of competent jurisdiction, or
require TAL to obtain or make any consent, approval, or filing of any kind
with, or notification to, any Person or Governmental Body, or any industry
association the sanctions of which are enforced by law or subject Archipelago
to any penalty or sanction.

 

(d)           TAL will keep the Software free at all times
from liens or encumbrances.

 

(e)           The Software and the marketing of the
Service thereof by Archipelago and the use of the Service by Subscribers does
not and will not in any manner contravene, breach or constitute an unauthorized
use, infringement, or misappropriation of any Intellectual Property Right or
any other property or proprietary right of any Person, provided that the
foregoing representations and warranties in this clause (e) will not apply to
the Software to the extent it has been modified by a party other than TAL or
one of its Affiliates and other than at the

 

8

 

direction of, or pursuant to instructions from, TAL or one of its
Affiliates.

 

(f)            TAL owns all, or has the rights to, the
Intellectual Property Rights in the Software, Object Code, Source Code and
Documentation and has all rights necessary to grant the licenses and rights it
grants hereunder under on the terms and conditions provided herein without the
approval or consent of any third party.

 

(g)           TAL has taken reasonable steps to protect
and maintain the Intellectual Property Rights in the Software, Object Code,
Source Code and Documentation.

 

(h)           The Software listed on Schedule A
provides functionality that is substantially the same as the software currently
used by TAL to provide ECN and related broker/dealer services, including but
not limited to order routing and matching, gateways, trade reporting, trade
processing and exception processing; provided, however, that such functionality
does not include (1) the display of market price quotations, news, and other
information for analysis as provided by TAL’s RealTick III software, and (2)
initiating order entry, position management, etc. as provided by TAL’s
RealTrade software; both RealTick III and RealTrade will be made available to
Archipelago pursuant to a separate License and Distribution Agreement.

 

(i)            Prior to January 1, 1999, the Software
shall recognize the advent of the year 2000 and will correctly recognize and
manipulate date information relating to dates on or after January 1, 2000,
including any leap years, and the operation and functionality of the Software
will not be adversely affected by the advent of the year 2000 or any
manipulation of data featuring information relating to dates. The Software will
comply with all regulatory and governmental requirements concerning year 2000
compliance. TAL shall use its best efforts to remediate any deficiency in the
Software concerning year 2000 compliance.

 

(j)            To the best of TAL’s knowledge, TAL
represents and warrants that the Software does not and will not, contain any
“viruses.” TAL further represents and warrants that the Software does not and
will not, contain any “time-bombs,” “usage authorization codes,” or other codes
or programming devices that might or might be used to access, modify, delete,
damage, deactivate or disable the Software or other software, computer hardware
or data of Archipelago, other than with respect to TAL’s “permissioning system”
which TAL shall remove from the Software as soon as reasonably practical
following a request by Archipelago.

 

(k)           TAL is not subject to any contractual or
other obligation or restriction that prohibits or would prohibit, or impairs or
would impair, its grant of licenses and rights or the performance of its
obligations hereunder upon the terms and conditions provided herein.

 

9

 

(l)            TAL EXPRESSLY DISCLAIMS ALL OTHER
WARRANTIES, EXPRESS OR IMPLIED WITH RESPECT TO THE SOFTWARE, DOCUMENTATION AND
RELATED MATERIALS, OR THEIR QUALITY OF PERFORMANCE INCLUDING WARRANTIES OF
MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. TAL MAKES NO
REPRESENTATION CONCERNING THE LIKELIHOOD OF PROFITABLE TRADING USING THE
SOFTWARE AND DOCUMENTATION. EXCEPT AS PROVIDED HEREIN, THE SOFTWARE ARE
LICENSED “AS IS” AND “WITH ALL FAULTS”.

 

(m)          EXCEPT AS OTHERWISE PROVIDED IN CLAUSES (i)
AND (j) OF THIS SECTION 7.1, TAL DOES NOT WARRANT THAT THE SOFTWARE OR THE
DOCUMENTATION WILL BE ERROR OR BUG FREE OR THAT ALL ERRORS IN THE SOFTWARE CAN
BE CORRECTED.

 

7.2           REPRESENTATIONS
AND WARRANTIES OF ARCHIPELAGO. Archipelago represents and warrants to TAL that:

 

(a)           Archipelago has the full power and authority
to execute, deliver and perform this License Agreement.

 

(b)           This License Agreement has been duly and
validly authorized, executed and delivered by Archipelago and constitutes a
valid and binding obligation of Archipelago enforceable in accordance with its
terms.

 

(c)           The execution, delivery and performance by
Archipelago of this License Agreement as contemplated hereby will not (i)
conflict with, or result in the breach or termination of, or constitute a
default under, any agreement of any kind or any judgment or decree, to which
Archipelago is in any way bound, except for such conflicts, breaches or
defaults as would not, in the aggregate, have a material adverse effect on the
ability of Archipelago to perform its obligations under this License Agreement
or (ii) constitute a violation by Archipelago of any applicable law or
regulation of any Governmental Body, or any rule or written policy of any
industry association of competent jurisdiction, or require Archipelago to
obtain or make any consent, approval, or filing of any kind with, or
notification to, any Person or any Governmental Body, or any industry
association the sanctions of which are enforced by law.

 

(d)           Archipelago holds all permits,
registrations, licenses, variances, exemptions, orders and approvals from
Governmental Bodies which are material to the performance by Archipelago of its
obligations under this Agreement in the jurisdictions in which Archipelago
proposes to perform such obligations (collectively, the “Archipelago Permits”),
except for such permits, registrations, licenses, variances, exemptions, orders
and approvals that have not been received as of the Effective Date and which
Archipelago will seek within a reasonable period after the Effective Date.
Archipelago is in compliance with the terms of all Archipelago Permits it
currently holds, except where any such non-compliance would not, in the
aggregate, have a material

 

10

 

adverse effect on the ability of Archipelago to perform its obligations
under this Agreement. Archipelago is in compliance with all federal, state,
local and foreign laws, statutes, ordinances, codes, regulations, orders,
requirements, standards and procedures of any Governmental Body which are applicable
to its businesses except where any such non-compliance would not, in the
aggregate, (x) have a material adverse effect on the ability of Archipelago to
perform its obligations under this Agreement, (y) cause TAL to violate any such
federal, state, local or foreign law, ordinance, code, regulation, order,
requirement, standard or procedure or (z) subject TAL to any increased cost or
penalty.

 

ARTICLE VIII

 

SALE OF TAL’S BUSINESS

 

8.1           CONDITIONS
OF SALE OR TRANSFER. As a condition to the sale, transfer, lease, assignment or
other disposition by TAL of all or more than a de minimis portion of TAL’s
businesses or assets relating to TAL’s performance hereunder, TAL shall require
that such Person execute an instrument in form and substance reasonably satisfactory
to Archipelago agreeing to be bound by the provisions of this License Agreement
as and to the extent of TAL.

 

ARTICLE IX

 

MISCELLANEOUS

 

9.1           USE
OR SALES TAX. Archipelago will be responsible for paying, as and when due, any
use or sales tax required to be paid in connection with the use of the
Software.

 

9.2           FEES.
Archipelago shall be responsible for paying any and all fees related to the use
of the Software which may be charged or applied by the SEC, the NASD, or other
regulatory and/or Governmental Bodies.

 

9.3           WAIVER
OF COMPLIANCE. Any failure of either party to comply with any obligation
hereunder may be expressly waived in writing by the other party, but such
waiver or failure to insist upon strict compliance with such obligation shall
not operate as a waiver of, or estoppel with respect to, any subsequent
failure.

 

9.4           NOTICES.
Any notice or other communication required or permitted hereunder shall be in
writing, and shall have been sufficiently given if hand delivered, signature
required, if sent by certified or registered mail, return receipt required, if
sent by overnight delivery service, signature required, or if sent by telecopy
and promptly confirmed by dispatching the hard copy by another permitted method
of giving notice. Notice given by hand delivery, certified or registered mail
or overnight delivery service shall be effective upon receipt of signature, and
notice first given by telecopy shall be effective upon telephonic confirmation
of receipt of the appropriate number of pages and dispatch of the

 

11

 

hard copy. Notices or other communications shall be delivered or
telecopied to the address or telecopy number set forth below (or to such other
address or telecopy number as a party by notice to the other may provide):

 

 

If to Archipelago, to:

 

Archipelago Holdings, L.L.C.

100 South Wacker Drive, Suite 2060

Chicago, IL 60606

Fax:

Voice number for confirmation: 312-960-1314

Attention:  Chief Executive
Officer

 

If to TAL, to:

 

Townsend Analytics; Ltd.

100 South Wacker Drive

Suite 2040

Chicago, Illinois 60606

Attention: President

 

9.5           CONSENT
TO JURISDICTION. Each party consents specifically to the non-exclusive
jurisdiction of the federal courts of the United States sitting in the Northern
District of Illinois and the courts of the State of Illinois sitting in the
County of Cook (and any court to which an appeal therefrom may be taken) for
purposes of all legal proceedings arising out of or relating to this License
Agreement or the transactions contemplated hereby, and each party irrevocably
waives, to the fullest extent permitted by law, any objection which it may now
or hereafter have to the laying of venue of any such proceeding brought in such
a court and any claim that any such proceeding brought in such a court has been
brought in an inconvenient forum. Each party irrevocably waives its right to a
trial by jury and consents that service of process may be effected by mail in
accordance with the notice provisions contained in this Section 9.5.

 

9.6           ENFORCEMENT
OF AGREEMENT. The parties hereto agree that money damages or other remedy at
law would not be sufficient or adequate remedy for any breach or violation of,
or a default under, this License Agreement by them and that in addition to all
other remedies available to them, each of them shall be entitled to seek an
injunction restraining such breach, violation or default or threatened breach,
violation or default and to any other equitable relief, including, without
limitation, specific performance, without bond or other security being
required.

 

9.7           COMPLETE
AGREEMENT; AMENDMENTS. This License Agreement may not be amended, supplemented
or modified except by written agreement executed by both Parties. This License
Agreement (including the Exhibits and Schedules) contains, and is intended as,
a complete statement of the arrangements between the parties with respect to
the subject matter and supersedes all prior agreements between the parties with
respect to those matters. This License Agreement shall supersede

 

12

 

and replace any previous agreement or understanding between the parties
with respect to the confidential or proprietary information of either party,
with effect from the first date of disclosure of such information.

 

9.8           SEVERABILITY.
If any term or clause of this License Agreement is held to be illegal, invalid
or unenforceable, the validity or enforceability of the remainder of this
License Agreement shall not be affected thereby. If any Governmental Body
construes any term or clause of this License Agreement to be unreasonable
because of the duration of such term or clause, such Governmental Body shall
have the power to reduce the duration of such term or clauses and to enforce
such term or clause as so reduced.

 

9.9           COUNTERPARTS.
This License Agreement may be executed in any number of separate counterparts,
each such separate counterpart shall be an original instrument, and all such
counterparts shall together constitute the same agreement.

 

9.10         GOVERNING
LAW. This License Agreement shall be governed by and construed in accordance
with the laws of the State of Illinois without giving effect to the principles
of conflicts of laws thereof.

 

9.11         BINDING
EFFECT: NO THIRD-PARTY BENEFICIARIES; ASSIGNMENT. This License Agreement shall
be binding upon and inure to the benefit of the parties and their respective
successors and permitted assigns. Nothing in this License Agreement shall
create or be deemed to create any rights in any Person other than TAL or
members of Archipelago. Except as provided elsewhere in this Agreement no party
may assign any of its rights or delegate any of its duties under this License
Agreement without the prior written consent of the other not to be unreasonably
withheld or delayed.

 

9.12         RELATIONSHIP
OF THE PARTIES. There is no joint venture, partnership, agency or fiduciary
relationship existing between the parties and the parties do not intend to
create any such relationship by this License Agreement.

 

9.13         NO
BROKERS OR FINDERS. Archipelago and TAL respectively represent and warrant to
the other that it has not employed or utilized the services of any broker or
finder in connection with this License Agreement or the transaction
contemplated hereby.

 

9.14         FORCE MAJEURE. Neither
TAL nor any of its Affiliates, or Archipelago shall be liable or deemed to be
in default under any provision of this License Agreement for any delay or
failure to perform under this License Agreement resulting directly or
indirectly from any cause beyond the reasonable control of TAL, any Affiliates
of TAL, or Archipelago (as the case may be), including, without limitation,
Acts of God, war, fire, electrical failure, explosion, earthquake, flood,
elements, governmental order or regulation, acts of public enemy, labor
disputes, strikes, lockouts, supply shortages, equipment failures, malfunctions
of software provided by third parties and other failures or delays or failures
caused by third parties (including third party providers of services used in connection
with the performance of this License Agreement).

 

13

 

 

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

 

 

	
  ARCHIPELAGO HOLDINGS, L.L.C.

  
	
   

  
	
  BY:

  	
  /S/ GERALD D. PUTNAM

  	
   

  
	
   

  	
   

  
	
  PRINT NAME: GERALD D. PUTNAM

  
	
  PRINT
  TITLE:         CHIEF EXECUTIVE
  OFFICER

  
	
   

  	
   

  
	
   

  	
   

  
	
  TOWNSEND ANALYTICS LTD.

  
	
   

  
	
   

  
	
  BY:

  	
  /S/ STUART TOWNSEND

  	
   

  
	
  PRINT NAME: STUART TOWNSEND

  
	
  PRINT
  TITLE:         PRESIDENT

  
						

 

 

 

SCHEDULE A

 

 

CO-OWNED SOFTWARE

 

 

I.              GATEWAYS
— Provide access to external systems.

 

1.             Client Access - Gateways that connect the
client’s desktop application to the Trade Server over the WAN or the Internet.

•              FIX Gate & FIX
Reporter

•              CMS Gate

 

2.             External Liquidity — Gateways that connect
to external sources of liquidity.

•              SelectNet

•              ISI

•              ISLAND

•              SOES

•              Bloomberg

•              Instinet

•              MASH

•              CSS

 

II.            ORDER MANAGING AND EXECUTING — The hub of
the system, which executes or routes orders based upon internal rules.

 

1.             Managing and routing - The client’s
desktop software communicates to the Trader Server through one of the client
access gateways. The Trade Server maintains the client’s order and application
information. It will decide where to route based upon client preferences and
internal rules.

•              Trade server

 

2.             ECN Book Server - Has the logic and
information that is used to execute the client’s order, post it to the national
market or place it on the internal book. Provides an audit trail and publishes
the top of the book.

•              ELF’s Trade server

•              ELF (ELF is
comprised of the following functions: (i) a NASDAQ interface, (ii) matching
function, and (iii) processing of trades and quotes. ELF is the exclusive
element of this License Agreement to the extent that TAL shall not license,
whether directly or indirectly through a sublicense through one or more
intermediaries, all three functionalities of ELF to any other party)

•              ABBA

 

1

 

III.           BROKERAGE
OPERATION AND CLEARING —

1.             Clearing - Is a match and forward
environment. Places the executions into a file and forwards the file to
Southwest Securities.

•              Trade Capture SK

•              Trade Capture

•              Clearing Gateway

•              Exception Processing

 

2.             Brokerage Operation — Maintains the
customer’s account and billing information. Handles all regulatory requirements
and management reporting.

•              HTML Risk Manager

•              HTML Account Manager

•              ECN Billing

 

 

2

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