Document:

Instinet 2004 Performance Share Plan - Form of Award Notification

  
 Exhibit 10.1

  
 INSTINET 2004 
 PERFORMANCE SHARE PLAN 
 AWARD
NOTIFICATION 
  
 To:
                                        
         [Name of Participant] 
  
 The Compensation Committee (the “Committee”) of Instinet Group Incorporated (the “Company”), which administers the Instinet 2004 Performance Share Plan (“Plan”), is pleased to notify you
that you have been designated as a participant (the “Participant”) in the Plan for the period commencing January 1,              and ending December 31,
             (the “Plan Cycle”). The Plan’s Performance Measures, Weighting Factors, Performance Goals and percentage Payouts of your Award applicable for certain
performance levels are described below. Except as specifically provided in this Notification, all definitions, terms, conditions and provisions contained in the Plan are incorporated by reference into this Notification and shall apply as if fully
set out herein. 
  

	1.	Grant of Performance Shares. Subject to the terms of this Notification and the Plan, the Participant hereby is awarded, as of the date set out below,
                     [insert number] Performance Shares for the Plan Cycle (the “Award”). The Participant agrees that his or her
acceptance of the Award benefits is acceptance of, and consent to, the Plan terms and conditions. 

  

	2.	Performance Measure, Performance Goals and Percentage Payout. The sole Performance Measure (with a 100% Weighting Factor) for the Plan Cycle shall be return on equity
(“ROE”). Performance Goals shall be based on the Company’s average three-year ROE performance for the Plan Cycle, as certified by the Committee, and the Payout shall be based on the level of Performance Goal achievement, all as set
forth in the following chart: 

  

									
	 Performance Measure

	  	Weighting
Factor

	 	 Performance Goals
 (average three-year ROE)

	  	Percentage
Payouts of Award

	 Return on Equity (ROE)
	  	 	 	Maximum	  	% and above	  	150%
	 	  	100%	 	Target	  	%	  	100%
	 	  	 	 	Threshold	  	%	  	50%
	 	  	 	 	Below Threshold	  	% and below	  	0%

  

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 At the Committee’s discretion, it may choose to interpolate the performance on a straight-line basis
between the threshold and maximum goal levels, depending on the level of the Performance Goal achieved with respect to the Performance Measure. 
  

	3.	Payout of Performance Share Awards. The Company shall deliver shares of Stock in payment of Performance Shares earned by the Participant within three months of the end of the
Plan Cycle, as determined in accordance with the Payout amount and timing provisions of this Notification and the Plan, subject to satisfaction by the Participant of all applicable tax withholding obligations. Payouts are subject to continued
employment by Participant with the Company up through and including the date of Payout. Therefore, if the Participant’s employment terminates prior to the date of Payout, except for death, Disability, Retirement, voluntarily for Good Reason or
involuntarily without Cause, no Payouts will be made under the Plan. 

  

	4.	Retention of Stock. The Participant shall be required to retain in his or her name, and not sell, transfer or otherwise dispose of, at least fifty percent (50%) of the shares
of Stock constituting the Payout for the Plan Cycle, net of any applicable income and employment taxes, throughout his or her employment by the Company. 

  

	5.	Amendment. This Notification may be amended by written agreement of the Participant and the Committee, without the consent of any other person or entity.

  

	6.	Plan Governs. This Notification is subject to all of the terms and conditions of the Plan, which are controlling. A copy of the Plan is attached. 

  

									
	 Date:
                        
	 	 	 	 INSTINET GROUP INCORPORATED
 (On behalf of
the Committee)

					
	 	 	 	 	 	 	 By: 
	 	 
	 	 	 	 	 	 	 	 	 Edward J. Nicoll
 Chief Executive Officer

  

 2Instinet 2000 Stock Option Plan, as Amended and Restated, March 30, 2004

  
 Exhibit 10.2

  
 

 
  
 INSTINET STOCK OPTION PLAN

  
 GRANT NOTIFICATION FORM 
  
 [Name] 
 [Address] 
 [City, State] 
  
 Has an option to purchase 
  
 [                    ] shares of 
 Common Stock of Instinet Group Incorporated 
  

					
	 Grant Date

	 	 Exercise Price

	 	 Expiration Date

	 	 	 	 	 

  
 You have advised me that I have been
granted the above nonqualified stock option under the Instinet 2000 Stock Option Plan, as amended, and subject to the terms and conditions set forth in the accompanying Option Agreement. I acknowledge that I have received a copy of the Option
Agreement in my grant package. My signature below indicates my agreement to accept the grant subject to all the terms and conditions as set forth therein. 
  
 I understand that Instinet Group Incorporated has reserved the right to amend or terminate the Stock Option Plan at any time, and that the grant of an option in one year
or in one award cycle does not in any way obligate Instinet Group Incorporated to make a grant to me in any future year or in any given amount. I also understand that the grant is wholly discretionary in nature. 
  
 The validity and construction of this Grant Notification Form will be governed by the laws of
the State of New York, USA, regardless of the citizenship or residence of any optionee or any person claiming under or through such optionee. 
  
 FOR SENIOR OFFICERS: I have read, understood and accept the terms and conditions set forth in Section 3 “Covenants” as found in the Instinet Stock Option
Agreement. 
  
 I understand that my acceptance of this grant does not obligate me
to exercise my Instinet Stock Option. 
  

					
	 ________________
	 	 	 	 
	 Date
	 	 	 	 Signature

  

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 INSTINET GROUP INCORPORATED

  
 INSTINET STOCK OPTION PLAN 
 OPTION AGREEMENT 
  
 This Agreement, when executed as set forth below by a duly authorized officer of Instinet Group Incorporated (the “Company”) and
[                            ] (the “Participant”), evidences the grant to the Participant
of an option (the “Option”) to purchase shares of Common Stock of the Company pursuant to the Instinet 2000 Stock Option Plan, as amended and restated (the “Plan”). Capitalized terms not defined herein shall have the meanings set
forth in the Plan. 
  

	1.	Grant of Option. 

  
 Subject to the provisions of this Agreement and to the provisions of the Plan, the Company hereby grants the Option to the Participant on the following
terms and conditions: 
  
 Number of shares of Common Stock
subject to the Option: [                    ] 
  
 Per-Share Exercise Price:
[$                    ] 
  
 Date of Grant: [                    ]

  
 Maximum Term of the Option:
[                                        ]

  

	2.	Exercisability of the Option. 

  
 (a) Subject to the provisions of Section 12 of the Plan and Section 3 below, the Option shall vest based on continued employment (i) as to
[                    ] shares subject thereto on
[                            ], (ii) as to an additional
[                    ] shares on
[                            ] and the last day of each calendar month that begins thereafter, ending
with the [        ]th such calendar month, and (iii) as to [                    ] shares on
[                    ]. The Option shall be exercisable as to all or a portion of the shares subject thereto on the date when it has vested as
to such shares. 
  
 (b) Notwithstanding the definitions provided
in the Plan, for purposes of the Option, the following terms shall have the following definitions: 
  

	 	(1)	The “Continuation Period” means the period of two years following an Involuntary Termination described in Section 12.D. of the Plan. 

  

	 	(2)	 An “Involuntary Termination” of the Participant shall mean both: (A) an Involuntary Termination of the Participant as defined in the Plan, and (B) a
Termination by the Participant within two years after a Change of Control, that occurs within 30 days after the occurrence of any of the following “Good Reason” events after a Change of Control without the Participant’s consent: (I) a
material diminution in the Participant’s duties, 

  

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authority, position or responsibilities; (II) a material decrease in the Participant’s base pay, fees, incentive compensation opportunities, and/or
employee benefits and prerequisites; or (III) a requirement that the Participant relocate his or her primary place of employment or service by more than 30 miles. Notwithstanding the foregoing, a Termination by the Participant described in clause
(B) of the preceding sentence shall not be considered an Involuntary Termination unless the Participant shall have given the Company or the relevant Affiliate of the Company notice of the event or events constituting “Good Reason” and the
Company or such Subsidiary shall have failed to cure such event or events within 10 business days after receipt of such notice. 

  

	 	(3)	The “Protected Period” means the period of two years following a Change of Control. 

  

	3.	Covenants 

  
 (a) Notwithstanding any other provision of the Plan or this Agreement, the Option shall immediately expire (whether or not vested) if at any time after
the Date of Grant, the Committee determines that the Participant has violated the covenant set forth in Section 3(b) or Section 3(c) below and that such violation warrants such forfeiture. In addition, if the Committee determines that the
Participant has violated Section 3(c) below, or if the Participant experiences a Termination for Cause, and the Committee determines that the application of this sentence is warranted, then the Participant shall be obligated to return to the Company
the Spread (as defined in the next sentence) with respect to each exercise of the Option that occurred or occurs on or after the date that is one year before such violation or Termination, as applicable, occurred. The “Spread” means (I)
the excess of (A) the fair market value of a share of Common Stock on the date of the exercise over (B) the per-share exercise price of the Option, times (II) the number of shares of Common Stock purchased pursuant to such exercise. To the fullest
extent permitted by applicable law, the Company may offset all or any portion of the Spread amounts that the Participant is obligated to pay to it pursuant to the foregoing against any amounts that it is otherwise obligated to pay to the
Participant. 
  
 (b) The Participant hereby reaffirms that he/she
has signed, understands, and has agreed to abide by, and by his/her signature below and acceptance of the Option covenants to continue to abide by, the Instinet Code of Conduct (including without limitation the Reuters Code of Conduct as adopted by
the Company), for so long as it remains in effect. The Participant hereby further covenants to sign and agree to abide by, and by his/her signature below and acceptance of the Option covenants to abide by, any successor or amended code of conduct
that may hereafter be adopted by the Company or any Affiliate by which the Participant may be employed. 
  
 (c) It shall be a violation of this Section 3(c) if during the Restricted Period (as defined below), the Participant: 
  

	 	(1)	 engages in any business (whether as an employee, consultant, director, partner or substantial shareholder) that is in direct or indirect 

  

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competition with any active or planned business of the Company or any of its Affiliates (“Competitive Business”); 

  

	 	(2)	directly or indirectly solicits or induces, or causes others to solicit or induce, any person who is employed by the Company or any of its Affiliates to terminate his or her
employment with the Company and its Affiliates or to accept employment with anyone or any entity other than the Company and its Affiliates; or 

  

	 	(3)	directly or indirectly solicits or does business with any client or potential client of the Company or any of its Affiliates in connection with a Competitive Business.

  
 The “Restricted Period” means the period while the
Participant is employed by the Company or any of its Affiliates, plus, if the Participant experiences a Termination as a result of either the Participant’s voluntary resignation or a Termination for Cause, a Termination in connection with which
the Participant receives severance pay from the Company or any of its Affiliates, or a Termination as a result of retirement with the consent of the Committee pursuant to Section 12.E. of the Plan, the period of 180 days immediately following the
Termination or, if longer, the period with respect to which the Participant receives severance pay (whether in a lump sum or periodic payments). 
  

	4.	Notices. 

  
 All notices and other communications under this Agreement shall be in writing and shall be given by hand delivery to the other party or by confirmed fax
or overnight courier, or by postage paid first class mail, addressed as follows: 
  
 If to the Participant: 
  
 [                            ] 
  
 [                            ] 
  
 [                            ] 
  
 If to the Company: 
  
 Instinet Group Incorporated 
 900 Plaza 10

 Jersey City, NJ 07311-4099 
  
 Attention: Human Resources 
  
 or to such other address or facsimile number as either party shall have furnished to the other in writing in accordance with this Paragraph 4. Notice and communications
shall be effective when actually received by the addressee. 
  

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	5.	Effect of Agreement. 

  
 Except as otherwise provided hereunder, this Agreement shall be binding upon and shall inure to the benefit of any successor or successors of the Company.

  

	6.	Laws Applicable to Construction. 

  
 The interpretation, performance and enforcement of this Agreement shall be governed by the laws of the State of New York without reference to principles
of conflict of laws, as applied to contracts executed in and performed wholly within the State of New York. 
  

	7.	Severability. 

  
 The invalidity or enforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this
Agreement. 
  

	8.	Conflicts and Interpretation. 

  
 The Option is subject to the provisions of the Plan, which are hereby incorporated by reference. In the event of any conflict between this Agreement and
the Plan, the Plan shall control. In the event of any ambiguity in this Agreement, any term which is not defined in this Agreement, or any matters as to which this Agreement is silent, the Plan shall govern. 
  

	9.	Headings. 

  
 The headings of paragraphs herein are included solely for convenience of reference and shall not affect the meaning or interpretation of any of the
provisions of this Agreement. 
  

	10.	Amendment. 

  
 Except as otherwise provided in the Plan, this Agreement may not be modified, amended or waived except by an instrument in writing signed by both parties
hereto. The waiver by either party of compliance with any provision of this Agreement shall not operate or be construed as a waiver of any other provision of this Agreement, or of any subsequent breach by such party of a provision of this Agreement.

  

	11.	Counterparts. 

  
 This Agreement may be executed in counterparts, which together shall constitute one and the same original. 
  

	12.	No Security. 

  
 This Agreement is not a security and does not represent the Option described herein but, rather, describes the Option granted to the Optionee as reflected
on the books and records of the Company. Neither this Agreement nor the Option represented hereby are assignable or transferable by the Optionee except as otherwise permitted under the Plan. 
  

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	13.	Time for Execution. 

  
 If the Grant Notification Form is not executed by the Participant and returned to the Company in accordance with Section 4 above not later than 60 days
after the date of grant of the Option, the Option shall be cancelled and void ab initio. 
  
 IN WITNESS WHEREOF, as of the date first above written, the Company has caused this Agreement to be executed on its behalf by a duly authorized officer and the Participant has hereunto set the Participant’s hand.

  

			
	INSTINET GROUP INCORPORATED
		
	By:	 	 
	 	 	 Authorized Officer

	 	 	 Instinet Group Incorporated

	 	 	 Date:
[                            ]

	
	Note: The Option will be cancelled unless the Participant signs and returns the Grant Notification Form to the Company within 60 days after the date of grant specified above –
see Section 13 above.

  

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