Document:

Collateral Pledge Agreement

 Exhibit 10.2 
 COLLATERAL PLEDGE AGREEMENT 
 THIS COLLATERAL PLEDGE AGREEMENT (this
“Agreement”), executed and delivered as of August 5, 2009, by RIDGE CLEARING & OUTSOURCING SOLUTIONS, INC., a New York corporation (“Debtor”), in favor of U.S. BANK NATIONAL ASSOCIATION,
a national banking association (“Secured Party”), pursuant to the terms of the Loan Agreement (Committed Customer Facility A) dated as of August 5, 2009, by and among Debtor, as Borrower, Broadridge Financial Solutions, Inc.,
as Guarantor, and Secured Party, as Lender, as the same may from time to time be amended, modified, extended, renewed or restated (the “Loan Agreement”; all capitalized terms used and not otherwise defined in this Agreement shall
have the respective meanings ascribed to them in the Loan Agreement); and has reference to the following facts and circumstances: 
 A. As a
condition precedent to Secured Party entering into the Loan Agreement, Secured Party has required that Debtor execute and deliver this Agreement to Secured Party. 
 B. In order to induce Secured Party to enter into the Loan Agreement, Debtor has agreed to execute and deliver this Agreement to Secured Party. 
 NOW, THEREFORE, in consideration of the foregoing, Debtor agrees with Secured Party as follows: 
 SECTION 1. DEFINITIONS. 
 Except as otherwise defined
in this Agreement and the Loan Agreement, all words, terms and/or phrases used in this Agreement shall be defined by the applicable definition therefor (if any) in the Uniform Commercial Code as adopted by the State of New York, as in effect from
time to time (the “New York Uniform Commercial Code”) (with terms used in Article 9 controlling over terms used in another Article). 
 SECTION 2. COLLATERAL - GENERAL TERMS. 
 2.01 To secure the prompt, full and faithful performance to Secured Party of
Borrower’s Obligations, Debtor grants to Secured Party a security interest in and to, and pledges and assigns to Secured Party, all of the following, now owned and hereafter acquired by Debtor and/or Debtor’s customers (referred to
individually and/or collectively as the “Collateral”): all right, title, share and interest in, to and under (a) the securities account listed on Schedule I attached hereto and incorporated by reference (the “Collateral
Account”); (b) those shares of stock, securities, security entitlements, and/or financial assets, together with any and all distributions, whether in cash or in kind, upon or in connection therewith, whether such distributions or
payments are dividends, are in partial or complete liquidation, or are the result of reclassification, readjustment or other changes in the capital structure of the Person issuing the same, or otherwise, and any and all subscriptions, warrants,
options and other rights issued upon and/or in connection therewith (collectively, the “Securities”), in each case, as deposited or held in or transferred or credited to or carried in the Collateral Account from time to time;
(c) any and all monies, reserves, deposits, certificates of deposit and deposit accounts and interest or dividends, securities, investment property, cash, cash equivalents and other property now or at any time or times hereafter in the
possession or under the control of Secured Party, its parent, Subsidiaries or Affiliates or its bailee; (c) any and all accessions to any of the Collateral and all substitutions, renewals, improvements and replacements of and additions thereto;
and (d) all proceeds of the foregoing (whether in the form of cash, proceeds of insurance policies, instruments, documents, general intangibles, contract rights, accounts, chattel paper, or otherwise). Notwithstanding anything to the contrary,
“Collateral” shall not include any (i) deposit accounts or securities accounts holding solely assets that have been segregated for the exclusive benefit of Debtor’s customers or such segregated assets, or (ii) trust or other
fiduciary deposit accounts or securities accounts and the assets therein. 
 2.02 Debtor shall execute and/or deliver to Secured Party upon
request, at any time and from time to time hereafter, all agreements, instruments, documents and other written matter (the “Supplemental Documentation”) that Secured Party reasonably may request, in form and substance acceptable to
Secured Party, to perfect and maintain Secured Party’s perfected security interest, lien and/or encumbrance in and/or pledge and assignment of the Collateral and to consummate the transactions contemplated in or by this Agreement. 

2.03 Debtor warrants and represents to and covenants with Secured Party that: (a) Debtor shall have, and Debtor shall continue to have, good and
marketable title to the Securities, free from any Liens, encumbrances, defenses and adverse claims other than the Liens created by this Agreement, the rights of 

 
Borrower’s customers with respect to Collateral consisting of customer securities, and Permitted Liens; (b) Debtor will defend the Securities
against all claims or demands of all Persons (other than Secured Party and holders of Permitted Liens) claiming the Securities or any interest therein; (c) immediately upon the delivery and pledge of any Securities as herein contemplated,
Secured Party will have a first and prior security interest in (and upon foreclosure as contemplated by this Agreement, Secured Party will have good title to, and will be the sole owner of) each of the Securities so delivered and pledged, free and
clear of any other pledge, Lien, encumbrance or security interest other than Permitted Liens; and (d) as of the date delivered, all Securities delivered under this Agreement shall be, to the best knowledge of the Officers, free from default.

 SECTION 3. COLLATERAL - SECURITIES. 
 3.01 If at any time and from time to time Secured Party determines that the total amount of all then outstanding Advances on any date are greater than the Borrowing Base as in effect on such date, Debtor shall, consistent with and as
required under Section 2.01 of the Loan Agreement, immediately either (a) prepay the amount by which the total amount of all then outstanding Advances exceed the Borrowing Base, or (b) deliver to Secured Party additional Securities,
such that following said prepayment or delivery, the total amount of all then outstanding Advances no longer exceed the Borrowing Base. 
 3.02 Upon the occurrence and continuation of any Event of Default, that portion of the pledged Securities consisting of distributions and payments upon or in connection therewith (whether such distributions or payments are dividends,
interest, principal or other distributions, or in partial or complete liquidation, or the result of reclassification, readjustment or other changes in the capital structure of the Persons issuing the same or otherwise) shall be delivered by Debtor
to Secured Party in the form that the distribution or payment is received by Debtor, and Secured Party shall hold any such distribution or payment as additional Collateral to secure the Borrower’s Obligations. Any shares of capital stock,
securities or evidence of indebtedness so distributed to Debtor shall be delivered to Secured Party accompanied with irrevocable stock powers relating thereto or assignments thereof duly signed by Debtor in form acceptable to Secured Party and duly
endorsed in blank by Debtor. 
 3.03 Upon the occurrence and continuation of any Event of Default, that portion of the pledged Securities
consisting of subscriptions, warrants, options and any other rights issued upon or in connection therewith or any portion thereof, shall be delivered by Debtor to Secured Party, and Secured Party shall hold such subscriptions, warrants, options and
other rights to secure Borrower’s Obligations; provided, however, that if Secured Party determines in its sole discretion that the value of any of such subscriptions, warrants, options or other rights shall terminate, expire or be
materially reduced by holding the same as Collateral, Secured Party shall have the right, in its sole discretion, to sell or exercise the same, and if exercised, then the monies disbursed by Secured Party in connection therewith shall be deemed
Advances by Secured Party to Debtor, and shall constitute part of Borrower’s Obligations, payable by Debtor to Secured Party on demand. 
 3.04 Upon the occurrence and continuation of any Event of Default, and after written notice to Debtor, Secured Party may transfer any or all of the Securities into the name of Secured Party, or into the name of Secured Party’s nominee,
without disclosing that such Securities so transferred are pledged or hypothecated, and without any indication on any new certificate or other document issued to evidence such Securities, that such Securities are pledged, and the Persons issuing the
same, or their transfer agents, shall not be bound to inquire in the event that Secured Party or said nominee makes any other transfer of the Securities, as to whether Secured Party or its nominee has the right to make such further transfer, and the
Persons issuing the same, or their transfer agents, shall not be liable for transferring the same. 
 3.05 Unless and until an Event of
Default shall have occurred and is continuing, Debtor shall be entitled to exercise any and all voting or consensual rights and powers and stock purchase or subscription rights relating or pertaining to the Securities or any part thereof for any
purpose; provided, however, that Debtor agrees that it will not exercise or refrain from exercising any such right or power if, as a result of so doing, it would have a Material Adverse Effect on the value of the Securities or any part
thereof. 
 3.06 Debtor further warrants and represents to Secured Party, to its knowledge, that: (a) the Securities are, and/or upon
issuance thereof will be, validly issued, fully paid and non-assessable; and (b) the Securities are, and/or upon issuance thereof will be, freely transferable without restriction under federal and state securities laws. 
  

 - 2 - 

 SECTION 4. REMEDIES UPON DEFAULT. 
 4.01 [RESERVED] 
 4.02 All of Secured Party’s rights and remedies under this Agreement are cumulative
and non-exclusive. 
 4.03 Upon the occurrence and during the continuation of an Event of Default, Secured Party, in its sole and absolute
discretion, may, consistent with the terms of this Agreement, the Loan Agreement and the other Transaction Documents, exercise any one or more of the following remedies: (a) if the outstanding Borrower’s Obligations are not paid, Secured
Party may at Secured Party’s election proceed to suit against Debtor; (b) reduce to cash or the like any of Debtor’s Property (other than customer segregated accounts) of any kind or nature in the possession, control or custody of
Secured Party, and, without notice to Debtor, apply the same in reduction or payment of the outstanding Borrower’s Obligations; (c) to the extent allowed by applicable law, without demand or notice of any kind, appropriate and apply toward
the payment of the outstanding Borrower’s Obligations, and in such order as the Secured Party may from time to time elect, any balances, credit, deposits, deposit accounts, accounts or moneys of Debtor (other than customer segregated accounts);
(d) exercise any one or more of the rights and remedies accruing to a secured party under the New York Uniform Commercial Code and any other applicable law upon default by a debtor; and/or (e) sell or cause to be sold the Collateral or any
part thereof and all of Debtor’s right, title and interest therein at public or private sale as Secured Party deems advisable in accordance with the applicable laws of the United States or of any state with such notice to Debtor as required by
applicable law. 
 4.04 Debtor agrees that in any sale of the Collateral, Secured Party is authorized to comply with any limitation or
restriction in connection with such sale as Secured Party may deem is necessary or advisable in order to avoid any violation of applicable law, or in order to obtain any required approval of the sale or of the purchaser by any governmental
regulatory authority or official, and Debtor further agrees that such compliance shall not result in such sale being considered commercially unreasonable, nor shall Secured Party be liable or accountable to Debtor for any discount allowed by reason
of the fact that the Collateral was sold in compliance with any such limitation or restriction. 
 4.05 Any sale of the Collateral may be
made for cash or credit at the election of Secured Party and the amounts of any such sale shall be credited to Borrower’s Obligations only when the proceeds thereof are actually received by Secured Party in immediately available or collected
funds. Secured Party or its nominee(s), may become the purchaser at such sale. Secured Party may, if it deems it reasonable, postpone or adjourn any such sale of the Collateral from time to time by an announcement at the time and place of sale or by
announcement at the time and place of such postponed or adjourned sale, without being required to give a new notice of sale. 
 4.06
[RESERVED] 
 4.07 Each notice, request, demand, consent, confirmation or other communication under this Agreement shall
be in writing and delivered in person or sent by telecopy, recognized overnight courier or registered or certified mail, return receipt requested and postage prepaid, to the applicable party at its address or telecopy number set forth on the
signature page of this Agreement, or at such other address or telecopy number as any party hereto may designate as its address for communications under this Agreement by notice so given. Such notices shall be deemed effective on the day on which
delivered or sent if delivered in person or sent by telecopy (with answerback confirmation received), on the first (1st) Business Day after the day on which sent, if sent by recognized overnight courier or on the third (3rd) Business Day after the day on which mailed, if sent by registered or certified mail.

 4.08 Debtor agrees that, to the extent allowed by applicable law, Secured Party has no obligation to preserve rights against prior parties
to the Collateral. Further, Debtor waives and releases any cause of action and claim against Secured Party as a result of Secured Party’s possession, collection or sale of the Collateral in 

  

 - 3 - 

 
accordance with the terms of this Agreement, any liability or penalty for failure of Secured Party to comply with any requirement imposed on Secured Party
relating to notice of sale, holding of sale or reporting of sale of the Collateral, and, to the extend permitted by law, any right of redemption from such sale. 
 SECTION 5. GENERAL. 
 5.01 If at any time or times hereafter Secured Party employs counsel (including attorneys who are
employees of Secured Party and/or any of its subsidiaries or affiliates) (a) for advice or other representation with respect to the Collateral, this Agreement or the administration thereof, (b) to represent Secured Party in any litigation,
contest, dispute, suit or proceeding or to commence, defend or intervene or to take any other action in or with respect to any litigation, contest, dispute, suit or proceeding (whether instituted by Secured Party, Debtor or any other Person) in any
way or respect relating to the Collateral, this Agreement or Debtor’s affairs, and/or (c) to enforce any rights of Secured Party against Debtor or any other Person which may be obligated to Secured Party by virtue of this Agreement the
reasonable costs, fees and expenses incurred by Secured Party in any manner or way with respect to the foregoing shall be part of Borrower’s Obligations, payable by Debtor to Secured Party on demand. The obligations of Debtor described in this
Section 5.01 are in addition to (but are not in duplication of ) and not in lieu of the obligations described in Section 8.03 of the Loan Agreement. 
 5.02 This Agreement shall be governed by and construed in accordance with the substantive laws of the State of New York. 
 5.03 DEBTOR AND SECURED PARTY HEREBY IRREVOCABLY (a) SUBMIT TO THE EXCLUSIVE JURISDICTION OF ANY STATE OR FEDERAL COURT SITTING IN THE BOROUGH OF MANHATTAN, CITY OF NEW YORK, IN ANY SUIT, ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER TRANSACTION DOCUMENT, (b) AGREE THAT ALL CLAIMS IN RESPECT TO SUCH SUIT, ACTION OR PROCEEDING MAY BE HELD AND DETERMINED IN ANY OF SUCH COURTS, (c) WAIVE, TO THE FULLEST
EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH DEBTOR OR SECURED PARTY MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT, (d) WAIVE ANY CLAIM THAT SUCH SUIT, ACTION OR PROCEEDING
BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM AND (e) WAIVE ALL RIGHTS OF ANY OTHER JURISDICTION WHICH DEBTOR OR SECURED PARTY MAY NOW OR HEREAFTER HAVE BY REASON OF ITS PRESENT OR SUBSEQUENT DOMICILES. DEBTOR AND SECURED
PARTY AUTHORIZE THE SERVICE OF PROCESS UPON DEBTOR AND SECURED PARTY BY REGISTERED MAIL SENT TO DEBTOR AND SECURED PARTY AT ITS ADDRESS REFERENCED IN SECTION 5.08. DEBTOR AND SECURED PARTY HEREBY IRREVOCABLY WAIVE THE RIGHT TO TRIAL BY JURY WITH
RESPECT TO ANY ACTION IN WHICH DEBTOR AND SECURED PARTY ARE PARTIES RELATING TO OR ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE OTHER TRANSACTION DOCUMENTS. 
 5.04 In the event any one or more of the provisions contained in this Agreement should be invalid, illegal or unenforceable in any respect, the validity,
legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby. 
 5.05
Secured Party’s failure at any time hereafter to require strict performance by Debtor of any provision of this Agreement shall not waive, affect or diminish any right of Secured Party thereafter to demand strict compliance and performance
therewith. Any suspension or waiver by Secured Party of an Event of Default by Debtor under this Agreement shall not suspend, waive or affect any other Event of Default by Debtor under this Agreement, whether the same or of a different type. None of
the undertakings, agreements, warranties, covenants and representatives of Debtor contained in this Agreement and no Event of Default by Debtor under this Agreement shall be deemed to have been suspended or waived by Secured Party unless such
suspension or waiver is by an instrument in writing signed by an officer of Secured Party directed to Debtor specifying such suspension or waiver. 
 5.06 This Agreement shall continue in full force and effect until Borrower’s Obligations are fully paid, performed and discharged. This Agreement shall continue to be effective or be reinstated, as the case may be, if at any time
payment of any of Borrower’s Obligations is rescinded or must otherwise be returned by Secured Party upon the insolvency, bankruptcy, or reorganization of Debtor or otherwise, all as though such payment had 

  

 - 4 - 

 
not been made. This Agreement shall be binding upon Debtor and inure to the benefit of Secured Party and Debtor, and their respective successors and assigns,
provided that Debtor may not assign or otherwise transfer any of its rights or delegate any of its obligations or duties under this Agreement without the prior written consent of Secured Party. 
 5.07 No termination of this Agreement, the Loan Agreement, or any of the other Transaction Documents shall in any way affect or impair the powers,
obligations, duties, rights and liabilities of Debtor or Secured Party in any way or respect relating to (a) any transaction or event occurring prior to such termination, (b) any of the Collateral, and (c) any of the undertakings,
agreements, covenants, warranties and representations of Debtor contained in this Agreement or the other Transaction Documents. 
 5.08 All
notices, requests and other communications to any party hereunder shall be in writing (including bank wire, telecopier or similar writing) and shall be given to such party at its address or telecopier number set forth on the signature pages hereof
or such other address or telecopier number as such party may hereafter specify; provided, that any such notices, requests and other communications under this Agreement sent by telecopy shall require the sending party to confirm via telephone
the receiving party’s receipt of such telecopy. Each such notice, request or other communication shall be effective (a) if given by telecopier, when such telecopy is transmitted to the telecopier number specified in this Section 5.08
and telephonic confirmation is received, (b) if given by mail, 72 hours after such communication is deposited in the mails with first class postage prepaid, addressed as aforesaid or (c) if given by any other means, when delivered at the
address specified in this Section 5.08. 
 5.09 All covenants, warranties and representations contained herein shall be true as of the
date hereof and shall survive the execution and delivery of this Agreement. 
 5.10 Any Liens granted to the Secured Party on any Collateral
pursuant hereto shall automatically be released (a) upon the payment in full of the Borrower’s Obligations and termination of Lender’s Revolving Credit Commitment, (b) at the time the Property subject to such Lien is sold or
otherwise disposed of to any Person to the extent that such sale or other disposition is made in compliance with the terms of the Loan Agreement, or (c) upon the effectiveness and to the extent of any written consent by the Secured Party to a
release of such Lien. In connection with any termination or release of a Lien described in the foregoing sentence, Secured Party shall execute and deliver to Debtor, at Debtor’s expense, all documents that Debtor shall reasonably request to
evidence such termination or release. Any execution and delivery of documents pursuant to this paragraph shall be without recourse to, or warranty by, Secured Party. 
 5.11 Any provision of this Agreement may be amended or waived if, but only if, such amendment or waiver is in writing and is signed by Debtor and Secured Party. 
 5.12 This Agreement may be executed in any number of counterparts (including telecopy counterparts), each of which shall be deemed an original, but all
of which together shall constitute one and the same instrument. 
 IN WITNESS WHEREOF, this Agreement has been duly executed as of the day
and year specified at the beginning hereof. 
 (SIGNATURES ON FOLLOWING PAGE) 
  

 - 5 - 

 SIGNATURE PAGE- 
 COLLATERAL PLEDGE AGREEMENT 
  

			
	
	 Debtor:

	
	RIDGE CLEARING & OUTSOURCING SOLUTIONS, INC
		
	 By:
	 	 /s/ Joseph Barra

	 Name:
	 	 Joseph Barra

	 Title:
	 	 President

	
	 Address:

	
	 1981 Marcus Avenue

	 Lake Success, NY 11042

	 Attention: General Counsel

	
	 Telecopy No. (866) 554-3112

  

			
	Accepted by and agreed by Secured Party to as of August 5, 2009:
	
	 Secured Party:

	
	 U.S. BANK NATIONAL ASSOCIATION

		
	 By
	 	 /s/ Robert L. Barrett

		 	Robert L. Barrett, Senior Vice President
	
	 Address:

	
	 461 Fifth Avenue (EX-NY-FA7)

	 New York, New York 10017

	 Attention: Broker-Dealer Division

	
	 Telecopy No. (646) 935-4533

  

 - 6 - 

 Schedule I 
 (Collateral Account) 
 Depository Trust Company Account No. 0158TradeStation Group, Inc. Amended and Restated Nonemployee Director Stock Option

 Exhibit 10.1 
 TRADESTATION GROUP, INC. 
 AMENDED AND RESTATED 
 NONEMPLOYEE DIRECTOR STOCK OPTION PLAN 
 1. Purpose. The purpose of the Plan is to attract and retain outstanding individuals to serve as members of the Board of Directors of TradeStation Group, Inc. (the “Company”) by providing such persons opportunities
to acquire common stock, $.01 par value, of the Company (“Common Shares”), thereby strengthening the mutuality of interest between such persons and the Company’s shareholders. 
 2. Shares Reserved under the Plan. There is hereby reserved for issuance under the Plan an aggregate of Seven Hundred Thousand
(700,000) Common Shares, which shall be authorized but unissued shares, reduced by an aggregate amount of shares of common stock, $.01 par value, of Omega Research, Inc., the predecessor of the Company (“Omega Research”), issued by
Omega Research prior to December 29, 2000 pursuant to the exercise of options granted under the Plan. If there is a lapse, expiration, termination or cancellation of any option granted under the Plan by the Company or Omega Research, all
unissued shares subject to or reserved for such option may again be used for new options granted under the Plan. 
 3.
Participation. Participation in the Plan is limited to members of the Board of Directors who are not salaried officers or employees of the Company or any of its direct or indirect subsidiaries (a “Nonemployee Director” or
“Participant”). 
 4. Options to be Granted under the Plan. Effective on or about the date of a Nonemployee
Director’s initial election to the Board of Directors (which initial election shall be deemed to have occurred when elected by the Board of Directors of either the Company, Omega Research or onlinetradinginc.com corp.), each Nonemployee
Director may be awarded nonqualified stock options to purchase up to a maximum of Seventy-Five Thousand (75,000) Common Shares (the “Initial Option”). The actual number of stock options awarded to each Nonemployee Director comprising
the Initial Option shall be determined by the Board of Directors as it deems necessary or advisable and in the best interests of the Company in order to attract and obtain outstanding and highly qualified candidates to serve on the Company’s
Board of Directors. Upon each re-election of such Nonemployee Director to the Board of Directors at the Company’s annual meeting of shareholders (“Annual Meeting”) commencing with the Annual Meeting held on June 18, 2001, each
Nonemployee Director shall automatically be awarded an additional nonqualified stock option (the “Additional Option”) to purchase Seven Thousand (7,000) Common Shares, provided, however, that, unless the Nonemployee Director has been
elected as a director at the Company’s previously-held, regularly-scheduled Annual Meeting (in which case the following exception is not intended to, and shall not, apply), such Nonemployee Director shall not be granted such Additional Option
upon such re-election if such Nonemployee Director was granted an Initial Option in the immediately preceding twelve (12)-month period upon his or her initial election to the Board of Directors in accordance with this Section 4. The Company is
authorized to provide the Participant with a stock option agreement consistent with the terms of the Plan. 
 5. Option Exercise
Price. Each option granted under the Plan shall be exercisable at an option price equal to 100% of the Fair Market Value (as defined in Section 10 hereof) of the Common Shares on the date of grant hereunder. 
  

 1 

 6. Limitations on Exercise. Any option granted under the Plan may be exercised (in
accordance with Section 7 hereof) in whole or in part, from time to time after the date granted, subject to the following limitations: 
 (a) No option granted hereunder may be exercised during the first year following the date such option was granted. Thereafter, each option may be exercised: 
 (i) to a maximum cumulative extent of one-third ( 1/3) of the total shares covered by the option on or after the first
anniversary of the date the option was granted; 
 (ii) to a maximum cumulative extent of
two-thirds ( 2/3) of the total shares covered by the option
on or after the second anniversary of the date the option was granted; and 
 (iii) to a maximum cumulative extent of
100% of the total shares covered by the option on or after the third anniversary of the date the option was granted. 
 Notwithstanding the
limitations of Section 6(a) above, any option granted under the Plan shall become fully exercisable upon the death of the Nonemployee Director while serving on the Board of Directors or upon the Retirement (as hereinafter defined in this
Section 6(b)) of the Nonemployee Director if such death or Retirement occurs on or after the first anniversary of the date such option was issued. For these purposes, “Retirement” means a Nonemployee Director’s termination of
service as a member of the Board of Directors after age 70 or at any time with the consent of the Board of Directors. Further, notwithstanding the limitations of Section 6(a) above, any option granted under the Plan shall become fully
exercisable upon a Change in Control. For these purposes, a “Change in Control” means the occurrence of any of the following: (A) any person or entity unaffiliated with the Company is or becomes the “beneficial owner” (as
defined in Rule 13d-3 under the Securities Act of 1933, as amended), directly or indirectly, of securities of the Company representing more than fifty (50%) of the combined voting power of the Company’s then outstanding securities;
(B) a merger or consolidation of the Company with any other corporation or other entity, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to
represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than fifty percent (50%) of the combined voting power of the voting securities of the Company or such surviving entity
outstanding immediately after such merger or consolidation, provided, however, that a merger or consolidation effected to implement a reorganization or recapitalization of the Company (or similar transaction) in which no person or entity acquires
more than fifty (50%) of the combined voting power of the Company’s then outstanding securities shall not constitute a Change in Control of the Company; or (C) the consummation of the sale or disposition by the Company, directly or
indirectly, of all or substantially all of the Company’s assets or accounts other than (x) the sale or disposition of all or substantially all of the assets of the Company to a subsidiary of the Company or to a person or persons who
beneficially own, directly or indirectly, at least fifty percent (50%) or more of the combined voting power of the outstanding voting securities of the Company at the time of the sale or (y) pursuant to a spin-off type transaction,
directly or indirectly, of such assets to the stockholders of the Company. 
 Notwithstanding the foregoing, in no event shall a Change in
Control be deemed to have occurred, with respect to a Nonemployee Director, if the Nonemployee Director is part of a purchasing group which consummates a transaction causing a Change in Control. A Nonemployee Director shall be deemed “part of a
purchasing group” for purposes of the preceding sentence if the Nonemployee Director is a direct or indirect equity participant in the purchasing company or group; provided however, that the Nonemployee Director shall not be considered part of
a purchasing group if the Nonemployee Director owns, directly or indirectly, 1% or less of the outstanding securities of the purchasing company or group. 
 For stock options issued prior to March 8, 2007, the definitions of Change in Control and Sale of the Company in effect under the Plan and used in the stock option agreements issued for those grants shall
continue to apply, and the definition above shall apply to grants on or after March 8, 2007. 
  

 2 

 (b) Any option granted under the Plan shall not be exercised after the earliest to occur of any of the
following events: 
 (i) more than ninety (90) days after termination of any Nonemployee Director’s service as a
member of the Board of Directors for any reason other than death or Retirement (and then only to the extent that such Nonemployee Director could have exercised such option on the date of termination); 
 (ii) more than one hundred eighty (180) days after a Nonemployee Director’s Retirement from the Board of Directors (and then
only to the extent that such Nonemployee Director could have exercised such option on the date of Retirement, after giving effect to Section 6(b) above); 
 (iii) more than twelve (12) months after death of a Nonemployee Director (and then only to the extent that such Nonemployee Director
could have exercised such option on the date of death, after giving effect to Section 6(b) above); or 
 (iv) more than
ten (10) years from the date the option is granted. 
 7. Method and Time of Exercise: Delivery of Certificates. Any
option granted under the Plan shall be deemed exercised on the date written notice of exercise is received by the Secretary of the Company at the Company’s corporate headquarters. Such notice shall be accompanied by: (a) a check payable to
the Company for the purchase price of the shares to be purchased; or (b) delivery of Common Shares owned by the Participant for at least six (6) months whose Fair Market Value on the date of exercise equals the purchase price of the shares
to be purchased; or (c) any combination of the foregoing. 
 8. Nontransferability. Any option granted under this Plan
shall not be transferable other than as required by law or by will or the laws of descent and distribution, and shall be exercisable, during the Participant’s lifetime, only by the Participant or the Participant’s guardian or legal
representative. If a Nonemployee Director dies during the option period, any option granted to such Participant may be exercised by his estate or the person to whom the option passes by will or the laws of descent and distribution, but only in
accordance with Section 6 above. Notwithstanding the foregoing, an option shall automatically become transferable to the Participant’s “immediate family members” or trusts or family partnerships for the benefit of such persons.
For purposes of this Section 8, “immediate family members” shall mean the Participant’s spouse and lineal descendants. 
 9. Other Provisions; Securities Registration. The grant of any option under the Plan may also be subject to other provisions as counsel to the Company deems appropriate, including, without limitation, such provisions as may be
appropriate to comply with federal or state securities laws and stock listing requirements. 
 10. Definition of Fair Market
Value. For purposes of the Plan and any options granted hereunder, Fair Market Value of Common Shares shall be the closing price for the Company’s Common Shares as reported on The NASDAQ Stock Market (or such other exchange or
consolidated transaction reporting system on which such Common Shares are primarily traded) on the date of grant (or the closing price on the next trading date if Common Shares were not traded on the date of grant); provided, however, that, if the
Company’s Common Shares are not at the applicable time readily tradable on a national securities exchange or other market system, Fair Market Value shall mean the amount determined in good faith by the Board of Directors as the fair market
value of the Common Shares of the Company. 
 11. Adjustment Provisions. If the Company shall at any time change the number of
issued Common Shares without new consideration to the Company (such as by stock dividend or stock split), the total number of shares reserved for issuance under the Plan and the number of shares covered by each outstanding option and the exercise
price thereunder shall be automatically adjusted so that the aggregate consideration payable to the Company and the value of each option shall not be changed. If, during the term of any option granted under the Plan, the Common Shares shall be
changed into another kind of stock, securities, cash or other property, whether as a result of reorganization, sale, merger, consolidation, or other similar transaction, the Board of Directors shall cause adequate provision to be made whereby all
Participants shall thereafter be entitled to receive, upon the due exercise of any 

  

 3 

 
outstanding options, the stock, securities, cash or other property such Participants would have been entitled to receive immediately prior to the effective
date of any such transaction for Common Shares which could have been acquired through the exercise of such options. 
 12. Amendment or
Discontinuation of Plan. The Board of Directors may amend the Plan at any time or suspend or discontinue the Plan at any time, but no such action shall adversely affect any outstanding option. 
 13. Governing Law. The Plan and any options granted hereunder shall be governed and construed in accordance with the laws of the State of
Florida (regardless of the law that might otherwise govern under applicable Florida principles of conflicts of laws). 
 14.
Shareholder Approval. The Plan was originally adopted by the Board of Directors of Omega Research and approved by the shareholders of Omega Research on July 24, 1997. On January 2, 1998, Omega Research’s Board of
Directors amended the Plan to increase the number of options that may be awarded to such individuals upon their initial election to the Board of Directors. The Plan was then assumed as of December 29, 2000 by the Company pursuant to the
Agreement and Plan of Merger and Reorganization dated as of January 19, 2000 among Omega Research, onlinetradinginc.com corp., the Company, Omega Acquisition Corporation and Onlinetrading Acquisition Corporation, and, in connection therewith,
the Plan was further amended by the Company’s Board of Directors on December 22, 2000 to be effective as of December 29, 2000 (the effective time of the merger pursuant to the foregoing Plan of Merger and Reorganization (the
“Effective Time”)), to reflect, among other things, the Company’s assumption of the Plan as of the Effective Time and to provide that all shares issuable after the Effective Time upon exercise of any options granted under the Plan
will be shares of $.01 par value common stock of the Company. The Plan in such amended form was approved by the Company’s shareholders on December 22, 2000, to be effective as of the Effective Time. On May 17, 2001, the Company’s
Board of Directors approved an amendment to the Plan, subject to the approval of the Company’s shareholders, to increase the number of Common Shares reserved for issuance under the Plan from 175,000 to 350,000 and to increase the number of
Common Shares included in the options automatically granted to a nonemployee director upon each annual reelection from 3,000 to 7,000. Such amendment was approved by the Company’s shareholders on June 18, 2001. The Plan was subsequently
amended by the Company’s Board of Directors, effective as of January 30, 2002, to clarify that the options granted under the Plan will become fully exercisable upon a Change in Control or a Sale of the Company. The Plan was subsequently
amended by the Company’s Board of Directors, effective as of June 6, 2006, to clarify that a Nonemployee Director is to automatically receive an Additional Option if the Initial Option was received in connection with being elected at the
last Annual Meeting, even if the current Annual Meeting date is fewer than twelve months from that preceding Annual Meeting date in connection with which the Initial Option was granted. The Plan was subsequently amended by the Company’s Board
of Directors, effective as of March 8, 2007, to make non-material amendments to the definition of Fair Market Value and Sale of the Company/Change in Control under Sections 10 and 6, respectively, of the Plan. Subsequently, on March 9,
2009, the Company’s Board of Directors approved an amendment to the Plan, subject to the approval of the Company’s shareholders, to increase the number of Common Shares reserved for issuance under the Plan from 350,000 to 700,000. Such
amendment was approved by the Company’s shareholders on June 2, 2009. Accordingly, the Plan represents the original 1997 Nonemployee Director Stock Option Plan as restated and amended through June 2, 2009. 
  

 4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00161-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00161-of-00352.parquet"}]]