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Exhibit 10.7  

 GFI GROUP INC.

2002 STOCK OPTION PLAN  

 

Effective as of June 4, 2002  

 
 

GFI GROUP INC.
  2002 STOCK OPTION PLAN    
    

 
  INTRODUCTION    
    

        GFI GROUP Inc. a Delaware corporation (hereinafter referred to as the "Corporation"), hereby establishes an incentive compensation plan to be known as the
"GFI GROUP INC. 2002 Stock Option Plan" (hereinafter referred to as the "Plan"), as set forth in this document. The Plan permits the grant of
Non-Qualified Stock Options and Incentive Stock Options. 

        The
Plan shall become effective on June 4, 2002. 

        The
purpose of the Plan is to promote the success and enhance the value of the Corporation by linking the personal interests of Optionees to those of the Corporation's stockholders by
providing Optionees with an incentive for outstanding performance. The Plan is further intended to assist the Corporation in its ability to motivate, and retain the services of, Optionees upon whose
judgment, interest and special effort the successful conduct of its and its Subsidiaries' operations is largely dependent. 

 
 

I
  DEFINITIONS    
    

        For purposes of the Plan, the following terms shall be defined as follows unless the context clearly indicates otherwise: 

        (a)    "Affiliate" shall mean any corporation or other entity, other than a Parent or Subsidiary of the Corporation, that is
classified by the Board of Directors as an "Affiliate." 

        (b)    "Award Agreement" shall mean the written agreement, executed by an appropriate officer of the Corporation, pursuant to
which an Option is granted. 

        (c)    "Board of Directors" shall mean the Board of Directors of the Corporation. 

        (d)    "Change of Control" shall mean a transaction in which any person (including any individual, firm, partnership or other
entity) together with all "Affiliates" and "Associates" (as defined for purposes of this subsection (d) under Rule 12b-2 of the General Rules and Regulations promulgated
under the Exchange Act) of such person (but excluding (i) a trustee or other fiduciary holding securities under an employee benefit plan of the Corporation or any subsidiary of the Corporation,
(ii) a corporation owned, directly or indirectly, by the stockholders of the Corporation in substantially the same proportions as their ownership of the Corporation, (iii) the
Corporation or any Subsidiary of the Corporation or (iv) only as provided in the immediately following sentence, an Optionee together with all Affiliates and Associates of the Optionee) who is
not a stockholder or an Affiliate or an Associate of a stockholder of the Corporation on the date of stockholder approval of the Plan is or becomes the "Beneficial Owner" (as defined in
Rule 13d-3 promulgated under the Exchange Act), directly or indirectly, of securities of the Corporation representing forty percent (40%) or more of the combined voting power of the
Corporation's then outstanding securities. The provisions of clause (iv) of the immediately preceding sentence shall apply only with respect to the Option(s) held by the Optionee who, together
with his or her Affiliates or Associates, if any, is or becomes the direct or indirect Beneficial Owner of the 40% of securities set forth in this subsection. Notwithstanding the above, a Change of
Control of the Corporation will not include any acquisition of any securities of the Corporation pursuant to a private placement of the Corporation's equity securities prior to the date, if any, on
which any class of the Corporation's equity securities become readily tradable on a recognized national securities exchange. 

        (e)    "Code" shall mean the Internal Revenue Code of 1986, as amended, and the rules and regulations thereunder. 

 

        (f)    "Committee" shall mean the Board of Directors or any committee of two or more persons designated from time to time by the
Board of Directors in its sole discretion (subject to the provisions of Section II hereof) to perform the functions of the Committee hereunder. 

        (g)    "Common Stock" shall mean the Class B common stock, par value $.01 per share, of the Corporation as authorized
from time to time or any security of the Corporation issued by the Corporation in substitution or exchange therefore. 

        (h)    "Consultant" shall mean an individual who is in a Consulting Relationship with the Corporation or any Parent, Subsidiary
or Affiliate. 

        (i)    "Consulting Relationship" shall mean the relationship that exists between an individual and the Corporation or any
Parent, Subsidiary or Affiliate if (i) such individual or (ii) any entity of which such individual is an executive officer or owns a substantial equity interest has entered into a
written consulting contract with the Corporation or any Parent, Subsidiary or Affiliate. 

        (j)    "Corporation" shall mean GFI Group Inc., a Delaware corporation. 

        (k)    "Disability" shall have the same meaning as the term "permanent and total disability" under Section 22(e)(3) of
the Code. 

        (l)    "Employee" shall mean an employee of the Corporation or of any Parent, Subsidiary or Affiliate, and to the extent
provided in Section IV, directors of the Corporation or of any Parent, Subsidiary or Affiliate. 

        (m)    "Exchange Act" shall mean the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder. 

        (n)    "Fair Market Value" shall mean the fair market value of the Corporation's Common Stock as determined by the Committee in
good faith in whatever manner it considers appropriate. 

        (o)    "Good Cause" shall, with respect to any Optionee, have the equivalent meaning (or the same meaning as "cause" or "for
cause") set forth in any employment agreement between the Optionee and the Corporation or any Parent, Subsidiary or Affiliate or, in the absence of any such agreement, such term shall mean
(i) the Optionee's continuing misconduct or willful misconduct or gross negligence in the performance of his or her duties for the Corporation or for any Parent, Subsidiary or Affiliate after
service of a thirty (30) day prior written notice (the "Thirty-Day Notice") of such misconduct or negligence, (ii) the Optionee's intentional or habitual neglect of his or
her duties for the Corporation or for any Parent, Subsidiary or Affiliate after service of a Thirty-Day Notice of such neglect, (iii) the Optionee's theft or misappropriation of
funds or other property of the Corporation or of any Parent, Subsidiary or Affiliate, (iv) the Optionee's fraud, criminal misconduct, breach of fiduciary duty or dishonesty in the performance
of his or her duties on behalf of the
Corporation or any Parent, Subsidiary or Affiliate or conviction of a felony, or crime of moral turpitude or any other conduct reflecting adversely upon the Corporation or any Parent, Subsidiary or
Affiliate, (v) the Optionee's violation of any restrictive covenant, including but not limited to, a covenant not to compete, not to solicit employees, customers or suppliers of goods or
services to the Corporation, or not to disclose confidential information with respect to the Corporation or any Parent, Subsidiary or Affiliate (including, but not limited to, any such covenant
included in an Award Agreement, (vi) the Optionee's termination of employment with the Corporation, or any Parent, Subsidiary or Affiliate without the written consent of such employer or
(vii) the Optionee's direct or indirect breach of any agreement with the Corporation or any Parent, Subsidiary or Affiliate, including but not limited to, the terms of a confidentiality
agreement, or consulting contract. 

        (p)    "Good Reason" shall, with respect to any Optionee, have the equivalent meaning set forth in any employment agreement
between the Optionee and the Corporation or any Parent, Subsidiary or 

2

 

Affiliate
or, in the absence of any defined meaning in any such agreement, the meaning, if any, that may be set forth in the applicable Option granted to such Optionee. 

        (q)    "Incentive Stock Option" shall mean a stock option satisfying the requirements for tax-favored treatment
under Section 422 of the Code. 

        (r)    "Non-Qualified Stock Option" shall mean a stock option which does not satisfy the requirements for, or which
is not intended to be eligible for, tax-favored treatment under Section 422 of the Code. 

        (s)    "Non-Employee Directors" shall mean "non-employee directors" as defined in
Rule 16b-3(b)(3) promulgated under the Exchange Act. 

        (t)    "Option" shall mean an Incentive Stock Option or a Non-Qualified Stock Option granted pursuant to the
provisions of Section V hereof. 

        (u)    "Optionee" shall mean an individual who is granted an Option under the terms of the Plan. 

        (v)    "Outside Directors" shall mean members of the Board of Directors of the Corporation who are classified as "outside
directors" under Section 162(m) of the Code and the regulations promulgated thereunder. 

        (w)    "Parent" shall mean a parent corporation of the Corporation within the meaning of Section 424(e) of the Code. 

        (x)    "Securities Act" shall mean the Securities Act of 1933, as amended, and the rules and regulations thereunder. 

        (y)    "Subsidiary" shall mean a subsidiary corporation of the Corporation within the meaning of Section 424(f) of the
Code. 

        (z)    "Termination of Consulting Relationship" shall mean the cessation, abridgment or termination of a Consultant's Consulting
Relationship with the Corporation or any Parent, Subsidiary or Affiliate as a result of (i) the Consultant's death or Disability, (ii) the cancellation, annulment, expiration,
termination or breach of the written consulting contract between the Corporation (or any Parent, Subsidiary or Affiliate) and the Consultant (or any other entity) giving rise to the Consulting
Relationship or (iii) if the written consulting contract is not directly between the Corporation and the Consultant, the Consultant's termination of service with, or the Corporation's sale of
all or substantially all of its equity interest in, the entity which has entered into the written consulting contract with the Consultant. 

 
 

II
  ADMINISTRATION    
    

        The Plan shall be administered by the Committee, which shall be composed of the entire Board of Directors or of two or more Non-Employee Directors, as
defined in Rule 16b-3(b)(3) promulgated under the Exchange Act (to the extent Section 16 of the Exchange Act is applicable to Options granted hereunder) and who also qualify
as Outside Directors (but only with respect to the period during which Options granted hereunder are subject to the deduction limitations of Section 162(m) of the Code). The Committee is
authorized to construe and interpret the Plan and to promulgate, amend and rescind rules and regulations relating to the implementation and administration of the Plan. Subject to the terms and
conditions of the Plan, the Committee shall make all determinations necessary or advisable for the implementation and administration of the Plan including, without limitation, (a) selecting the
Plan's Optionees, (b) awarding Options in such amounts and form as the Committee shall determine, (c) imposing such restrictions, terms and conditions upon such Options as the Committee
shall deem appropriate (including, but not limited to, accelerating the exercisability of any outstanding Options), 

3

 

and
(d) correcting any technical defect(s) or technical omission(s), or reconciling any technical inconsistency(ies), in the Plan, any Award Agreement and/or any other applicable agreement. The
Committee may designate persons other than members of the Committee to carry out the day-to-day ministerial administration of the Plan under such conditions and limitations as
it may prescribe. The Committee's determinations under the Plan need not be uniform and may be made selectively among Optionees, whether or not such Optionees are similarly situated. Any
determination, decision or action of the Committee in connection with the construction, interpretation, administration, or implementation of the Plan shall be final, conclusive and binding upon all
Optionees and any person(s) claiming under or through any Optionees. The Corporation shall effect the awarding of Options under the Plan, in accordance with the determinations made by the Committee by
execution of written agreements and/or other instruments in such form as is approved by the Committee. 

 
 

III
  SHARES AVAILABLE    
    

        Subject to the adjustments provided in Section VI of the Plan, the aggregate number of shares of Common Stock which may be granted for all purposes under
the Plan shall be twenty-five (25) million shares. Shares of Common Stock underlying awards of securities (derivative or not) shall be counted against the limitation set forth in
the immediately preceding sentence and may be reused to the extent that the related Option to any individual is settled in cash, expires, is terminated unexercised, or is forfeited. Common Stock
granted to satisfy Options under the Plan may be authorized and unissued shares of the Common Stock, issued shares of such Common Stock held in the Corporation's treasury or shares of Common Stock
acquired on the open market. 

 
 

IV
  ELIGIBILITY    
    

        Employees, Consultants, and directors of the Corporation or of any Parent, Subsidiary or Affiliate, shall be eligible to participate in the Plan. Where
appropriate under the Plan, directors who are not employees shall be referred to as "Employees" and their service as directors as "employment." 

 
 

V
  STOCK OPTIONS    
    

        The Committee shall have the authority, in its discretion, to grant Incentive Stock Options or to grant Non-Qualified Stock Options or to grant both
types of Options. Notwithstanding anything contained herein to the contrary, an Incentive Stock Option may be granted only to Employees of the Corporation or of any Parent or Subsidiary now existing
or hereafter formed or acquired. The maximum number of shares of Common Stock subject to Options which may be granted to any single Optionee during any calendar year is five (5) million shares.
Such maximum number of shares will be subject to adjustment in accordance with the provisions of Section VI of the Plan. The terms and conditions of the Options shall be determined from time to
time by the Committee; provided, however, that the Options granted under the Plan shall be subject to
the following: 

        (a)    Exercise Price.    The Committee shall establish the exercise price at the time any Option is granted at such
amount as the Committee shall determine; provided, however, that the exercise price for each share of
Common Stock purchasable under any Incentive Stock Option granted hereunder shall be such amount as the Committee shall, in its best judgment, determine to be not less than one hundred percent (100%)
of the Fair Market Value per share of Common Stock at the date the Option is granted; and provided further, that in the case of an Incentive Stock
Option granted to a person who, at the time such Incentive Stock Option is granted, owns shares of stock of the Corporation or of any Parent, Subsidiary or Affiliate which possess more than ten
percent (10%) of the total combined voting power of all classes of shares of stock of the Corporation or of any Parent, Subsidiary or Affiliate, (a 

4

 

"Ten
Percent Stockholder") the exercise price for each share of Common Stock shall be such amount as the Committee, in its best judgment, shall determine to be not less than one hundred ten percent
(110%) of such Fair Market Value per share of Common Stock at the date the Option is granted. The exercise price will be subject to adjustment in accordance with the provisions of Section VI of
the Plan. 

        (b)    Payment of Exercise Price.    The exercise price per share of Common Stock with respect to each Option shall be
payable at the time the Option is exercised in accordance with any procedures established by the Committee. Such price shall be payable (i) by payment in cash, certified check, bank draft or
money order payable to the order of the Corporation, (ii) by delivery of that number of shares of Common Stock already owned by the Optionee for at least six (6) months, having a Fair
Market Value equal to the Option exercise price for the portion exercised, or (iii) by any other method established by the Committee in its sole discretion. 

        (c)    Exercisability of Options.    Except as provided in any Award Agreement, each Option shall be exercisable in
whole or in installments, and at such time(s), and subject to the fulfillment of any conditions and/or limitations on exercisability as may be determined by the Committee at the time of the grant of
such Options. The right to purchase shares of Common Stock shall be cumulative so that when the right to purchase any shares of Common Stock has accrued, such shares of Common Stock or any part
thereof may be purchased at any time thereafter until the expiration or termination of the Option. Notwithstanding the above, no Option granted under this Plan may be exercised prior to the
consummation of an initial public offering of any class of the Corporation's equity securities. 

        (d)    Expiration of Options.    No Incentive Stock Option by its terms shall be exercisable after the expiration of
ten (10) years from the date of grant of the Option; provided, however, in the case of an Incentive Stock Option granted to a Ten Percent Stockholder, such Option shall not be exercisable after
the expiration of five (5) years from the date such Option is granted. In the event that an Optionee violates the terms of any restrictive covenant, including but not limited to, a covenant not
to compete, not to solicit employees, customers or suppliers of goods or services to the Corporation or any Parent, Subsidiary or Affiliate or not to disclose confidential information with respect to
the Corporation or any Parent, Subsidiary or Affiliate, then immediately upon such violation, the Committee in its sole discretion may cancel any or all of such Optionee's Options. 

        (e)    Maximum Amount of Incentive Stock Options.    Each Option under which Incentive Stock Options are granted shall
provide that to the extent the sum of (i) the Fair Market Value of the shares of Common Stock (determined as of the time of the grant of the Option) subject to such Incentive Stock Option plus
(ii) the Fair Market Values (determined as of the date(s) of grant of the option(s)) of all other shares of Common Stock subject to Incentive Stock Options granted to an Optionee by the
Corporation, which are exercisable for the first time by any person during any calendar year, exceed(s) one hundred thousand dollars ($100,000), such excess shares of Common Stock shall not be deemed
to be purchasable pursuant to Incentive Stock Options. The terms of the immediately preceding sentence shall be applied by taking all options, whether or not granted under the Plan, into account in
the order in which they are granted. 

        (f)    Dividend Equivalents for Outstanding Options.    The Committee may, in any Award Agreement, provide for the
grant of dividend equivalents in connection with Common Stock subject to the Option granted thereunder. 

5

  

        (g)    Reload Options. 

          (i)  Concurrently
with the award of an Option (for purposes of this subsection (h), the "Primary Option") to an Optionee, the Committee may, in its sole discretion,
authorize the award of an additional Option or Options (hereinafter referred to as "Reload Options") to such Optionee providing for the purchase of shares of Common Stock in an amount equal to the sum
of: 

        (A)  the
number of shares of Common Stock, if any, used to exercise the Primary Option; and 

        (B)  to
the extent authorized by the Committee, the number of shares of Common Stock used to satisfy any tax withholding requirement related to the exercise of the Primary
Option. 

For
purposes of this subsection (h), upon its exercise, a Reload Option shall be treated as a Primary Option. 

        (ii)   The
grant of a Reload Option will become effective upon the exercise of the Primary Option. At the discretion of the Committee, a Reload Option may be an Incentive
Stock Option. 

        (iii)  To
the extent that the exercise of any Primary Option will result in the award of a Reload Option, the Award Agreement under which such Primary Option is granted must
provide that the exercise of such Primary Option will result in the award of a related Reload Option, which will be evidenced under a separate Award Agreement. The terms of such Award Agreement shall
provide, among other items, that (A) the exercise price per share of Common Stock available for purchase under the Reload Option shall be no less than 100% of the Fair Market Value of such
Common Stock on the date the Reload Option is granted and (B) the term of the Reload Option shall not extend beyond the remaining term of the Primary Option. 

        (iv)  Notwithstanding
the terms of (i), (ii) or (iii) above, no Reload Option will be granted pursuant to the exercise of a Primary Option if such exercise
occurs after the termination of the Optionee's employment with the Corporation or with any Parent, Subsidiary or Affiliate. 

 
 

VI
  ADJUSTMENT OF SHARES; MERGER OR
  CONSOLIDATION, ETC. OF THE CORPORATION    
    

        (a)    No Corporate Action Restriction.    The existence of the Plan, any Award Agreement and/or the Options granted
hereunder shall not limit, affect or restrict in any way the right or power of the Board of Directors or the stockholders of the Corporation to make or authorize (a) any adjustment,
recapitalization, reorganization or other change in the Corporation's or any Subsidiary's capital structure or its business, (b) any merger, consolidation or change in the ownership of the
Corporation or any Subsidiary, (c) any issue of bonds, debentures, capital, preferred or prior preference stocks ahead of or affecting the Corporation's or any Subsidiary's capital stock or the
rights thereof, (d) any dissolution or liquidation of the Corporation or any Subsidiary, (e) any sale or transfer of all or any part of the Corporation's or any Subsidiary's assets or
business, or (f) any other corporate act or proceeding by the Corporation or any Subsidiary. No Optionee, beneficiary or any other person shall have any claim against any member of the Board of
Directors or the Committee, the Corporation or any Subsidiary, or any Employees, officers, stockholders or agents of the Corporation or any Subsidiary, as a result of any such action. 

        (b)    Changes in Capital Structure.    Options granted under the Plan and any agreements evidencing such Options, the
maximum number of shares of Common Stock subject to all Options as stated in Section III and the maximum number of shares of Common Stock subject to Options which may be granted to any single
Optionee during any calendar year as stated in Section V shall be subject to 

6

 

adjustment
or substitution, as determined by the Board of Directors in its sole discretion, as to the number, price or kind of a share of stock or other consideration subject to such Options or as
otherwise determined by the Board of Directors to be equitable (i) in the event of changes in the outstanding stock or in the capital structure of the Corporation by reason of stock or
extraordinary cash dividends, stock splits, reverse stock splits, recapitalizations, reorganizations, mergers, consolidations, combinations, exchanges, a Change of Control or other relevant changes in
capitalization occurring after the date of grant of any such Option or (ii) in the event of any change in applicable laws or any change in circumstances which results in or would result in any
substantial dilution or enlargement of the rights granted to, or available for Optionees, or which otherwise warrants equitable adjustment because it interferes with the intended operation of the
Plan. The Corporation shall give each Optionee notice of an adjustment hereunder and, upon notice, such adjustment shall be conclusive and binding for all purposes. 

        Notwithstanding
the above, in the event of any of the following: 

        A.    The
Corporation is merged or consolidated with another corporation or entity; 

        B.    All
or substantially all of the assets of the Corporation are acquired by another person; 

        C.    A
Change of Control; 

        D.    The
reorganization or liquidation of the Corporation; or 

        E.    The
Corporation enters into a written agreement to undergo an event described in clauses A through D above; 

then
the Board of Directors may, in its discretion and upon at least ten (10) days advance notice to the affected persons, cancel any outstanding Options and cause the holders thereof to be
paid, in cash or stock (including any stock of a successor or acquirer), or any combination thereof, the value of such Options as determined by the Board of Directors, based upon the excess of the
value of a share of Common Stock over the exercise price per share of Common Stock. 

        (c)    Change of Control.    Following an initial public offering of any of the Corporation's equity securities, in
the event of a Change of Control, any outstanding Options then held by Optionees which are unexercisable or otherwise unvested, shall automatically be deemed exercisable or otherwise vested, as the
case may be, as of immediately prior to such Change of Control. 

 
 

VII
  MISCELLANEOUS PROVISIONS    
    

        (a)    Administrative Procedures.    The Committee may establish any procedures determined by it to be appropriate in
discharging its responsibilities under the Plan. All actions and decisions of the Committee shall be final. 

        (b)    Non-transferability.    Unless otherwise provided in the Optionee's Award Agreement, no Option
under the Plan or any Award Agreement, and no rights or interests herein or therein, shall or may be assigned, transferred, sold, exchanged, encumbered, pledged, or otherwise hypothecated or disposed
of by an Optionee or any beneficiary(ies) of any Optionee, except by testamentary disposition by the Optionee or pursuant to the laws of intestate succession. No such interest shall be subject to
execution, attachment or similar legal process, including, without limitation, seizure for the payment of the Optionee's debts, judgments, alimony, or separate maintenance. During the lifetime of an
Optionee, Options are exercisable only by the Optionee. 

        (c)    Investment Representation.    With respect to shares of Common Stock received pursuant to the exercise of an
Option, the Committee may require, as a condition of receiving such securities, that the Optionee furnish to the Corporation such written representations and information as the Committee 

7

 

deems
appropriate to permit the Corporation, in light of the existence or nonexistence of an effective registration statement under the Securities Act, to deliver such securities in compliance with
the provisions of the Securities Act. 

        (d)    Tax Withholding.    The Corporation shall have the right to deduct from any payment or settlement under the
Plan, including, without limitation, the exercise of any Option, any federal, state, local, foreign or other taxes of any kind which the Committee, in its sole discretion, deems necessary to be
withheld to comply with the Code and/or any other applicable law, rule or regulation. In addition, the Corporation shall have the right to require payment from a Optionee to cover any applicable
withholding or other employment taxes due upon the exercise of an Option. 

        (e)    Costs and Expenses.    The costs and expenses of administering the Plan shall be borne by the Corporation and
shall not be charged against any award nor to any individual receiving an Option. 

        (f)    Funding of Plan.    The Plan shall be unfunded. The Corporation shall not be required to segregate any of its
assets to assure the payment of any Option under the Plan. Neither the Optionees nor any other persons shall have any interest in any fund or in any specific asset or assets of the Corporation or any
other entity by reason of any Option, except to the extent expressly provided hereunder. 

        (g)    Other Incentive Plans.    The adoption of the Plan does not preclude the adoption by appropriate means of any
other incentive plan for Employees. 

        (h)    Plurals and Gender.    Where appearing in the Plan, the masculine gender shall include the feminine and neuter
genders, and the singular shall include the plural, and vice versa, unless the context clearly indicates a different meaning. 

        (i)    Headings.    The headings and sub-headings in the Plan are inserted for the convenience of
reference only and are to be ignored in any construction of the provisions hereof. 

        (j)    Severability.    In case any provision of the Plan shall be held illegal or void, such illegality or invalidity
shall not affect the remaining provisions of the Plan, but shall be fully severable, and the Plan shall be construed and enforced as if said illegal or invalid provisions had never been inserted
herein. 

        (k)    Liability and Indemnification.    

        (i)    Neither
the Corporation nor any Parent, Subsidiary or Affiliate shall be responsible in any way for any action or omission of the Committee, or any other fiduciaries in
the performance of their duties and obligations as set forth in the Plan. Furthermore, neither the Corporation nor any Parent, Subsidiary or Affiliate shall be responsible for any act or omission of
any of their agents, or with respect to reliance upon advice of their counsel, provided that the Corporation and/or the appropriate Parent, Subsidiary or Affiliate relied in good faith upon the action
of such agent or the advice of such counsel. 

        (ii)   Neither
the Corporation, any Parent, Subsidiary or Affiliate, the Committee, nor any agents, employees, officers, directors or shareholders of any of them, nor any
other person shall have any liability or responsibility with respect to the Plan, except as expressly provided herein. 

        (l)    Incapacity.    If the Committee shall receive evidence satisfactory to it that a person entitled to exercise
any Option is, at the time when such Option becomes exercisable, a minor, or is physically or mentally incompetent to receive such Option and to give a valid release thereof, and that another person
or an institution is then maintaining or has custody of such person and that no guardian, committee or other representative of the estate of such person shall have been duly appointed, the Committee
may permit such Option to be exercised by such other person or institution, including a custodian under a Uniform Gifts to Minors Act or corresponding legislation (who shall be an adult, a 

8

 

guardian
of the minor or a trust company), and the release by such other person or institution shall be a valid and complete discharge for the exercise of such Option. 

        (m)    Cooperation of Parties.    All parties to the Plan and any person claiming any interest hereunder agree to
perform any and all acts and execute any and all documents and papers which are necessary or desirable for carrying out the Plan or any of its provisions. 

        (n)    Governing Law; Venue.    All questions pertaining to the validity, construction and administration of the Plan
shall be determined in accordance with the laws of the State of New York, without regard to its principles of conflicts of law. Furthermore, in the event any action is brought by any individual with
respect to a claim or claims under this Plan, the venue for such action shall be the courts of the State of New York located within the County of New York; provided, however if the federal courts have
subject matter jurisdiction, any action shall be commenced and maintained in the federal court located in the Southern District of the State of New York. In any such action or proceeding, each party
hereto waives personal service of any summons, complaint or other process and agrees that service thereof may be made in accordance with subsection (p) of this Article VII. Within
30 days after such service, or such other time as may be mutually agreed upon in writing by the attorneys for the parties to such action or proceeding, the party so served shall appear or
answer such summons, complaint or other process. Should the party so served fail to appear or answer within such 30-day period or such extended period, as the case may be, such party shall
be deemed in default and judgment may be entered against such party for the amount as demanded in any summons, complaint or other process so served. 

        (o)    No Guarantee of Employment or Consulting Relationship.    Nothing contained in the Plan shall be construed as a
contract of employment (or as a consulting contract) between the Corporation (or any Parent, Subsidiary or Affiliate), and any Employee or Optionee, as a right of any Employee or Optionee to be
continued in the employment of (or in a Consulting Relationship with) the Corporation (or any Parent, Subsidiary or Affiliate), or as a limitation on the right of the Corporation or any Parent,
Subsidiary or Affiliate to discharge any of its Employees (or Consultants), at any time, with or without cause (but subject to the terms of any applicable employment or consulting agreement). 

        (p)    Notices.    Each notice relating to the Plan shall be in writing and delivered in person, by recognized
overnight courier or by certified mail to the proper address. Except as otherwise provided in any Award Agreement with respect to the exercise thereunder, all notices to the Corporation or the
Committee shall be addressed to it at 100 Wall Street, New York, New York 10005, Attn: General Counsel. All notices to Optionees, beneficiaries or other persons acting for or on behalf of such persons
shall be addressed to such person at the last address for such person maintained in the Committee's records. 

        (q)    Written Agreements.    Each Option shall be evidenced by a signed, written Award Agreement between the
Corporation and the Optionee containing the terms and conditions of the Option grant. 

 
 

VIII
  AMENDMENT OR TERMINATION OF PLAN    
    

        The Board of Directors of the Corporation shall have the right to amend, suspend or terminate the Plan at any time, provided that no amendment shall be made which
shall increase the total number of shares of the Common Stock of the Corporation which may be issued and sold pursuant to Incentive Stock Options, reduce the minimum exercise price in the case of an
Incentive Stock Option or modify the provisions of the Plan relating to eligibility with respect to Incentive Stock Options unless such amendment is made by or with the approval of the stockholders of
the Corporation within 12 months of the effective date of such amendment, but only if such approval is required by any applicable provision of law. Furthermore, no amendment to the Plan may,
without stockholder approval, change (i) the maximum amount of shares of Common Stock that may be granted under the Plan or (ii) that 

9

 

maximum
number of shares of Common Stock subject to Options that any Optionee may receive in a calendar year. The Board of Directors of the Corporation shall also be authorized to amend the Plan and
the Options granted thereunder to maintain qualification as "incentive stock options" within the meaning of Section 422 of the Code, if applicable. Except as otherwise provided herein, no
amendment, suspension or termination of the Plan shall materially and adversely affect any Optionee's Options previously granted under the Plan without the consent of the holders of Options covering a
majority of the shares subject to outstanding Options. 

 
 

IX
  TERM OF PLAN    
    

        The Plan shall automatically terminate on the day immediately preceding the tenth (10th) anniversary of the date the Plan was adopted by the Board
of Directors of the Corporation, unless sooner terminated by such Board of Directors. No Options may be granted under the Plan subsequent to the termination of the Plan. 

10

OPTION NO. 00-ISO-[            ] 

GFI Group Inc.  

 2002 Stock Option Plan  

INCENTIVE STOCK OPTION  

 Granted To

[                        ]

	    	 	 
	    	 	 
	Number of Shares: [            ]	 	Price per Share: $                        
	

Date Granted: [                        ], 200    	
 	

Expiration Date: [                        ], 200    

 
 

INCENTIVE STOCK OPTION AGREEMENT    
    

        AGREEMENT made as of this [    ] day of [            ],
200            (the "Date of Grant")
between GFI Group Inc., a Delaware corporation (hereinafter referred to as the "Company"), and [    ], residing at [    ]
(hereinafter referred to as the "Employee"). 

W I T N E S S E T H: 

        WHEREAS,
the Company desires, in connection with the employment of the Employee and in accordance with its 2002 Stock Option Plan (the "Plan"), to provide the Employee with an
opportunity to acquire Class B Common Stock, par value $0.01 per share (hereinafter referred to as "Common Stock"), of the Company on favorable terms and thereby increase his or her proprietary
interest in the continued progress and success of the business of the Company; 

        NOW,
THEREFORE, in consideration of the promises and the mutual covenants herein set forth and other good and valuable consideration, the Company and the Employee hereby agree as
follows: 

        1.    Incorporation By Reference; Plan Document Receipt.    This Agreement is subject in all respects to the terms and
provisions of the Plan (including, without limitation, any amendments thereto adopted at any time and from time to time unless such amendments are expressly intended not to apply to the grant of the
option hereunder), all of which terms and provisions are made a part of and incorporated in this Agreement as if they were each expressly set forth herein. Any capitalized term not defined in this
Agreement shall have the same meaning as is ascribed thereto under the Plan. The Employee hereby acknowledges receipt of a true copy of the Plan and that the Employee has read the Plan carefully and
fully understands its content. In the event of any conflict between the terms of this Agreement and the terms of the Plan, the terms of the Plan shall control. 

        2.    Confirmation of Grant of Option.    Pursuant to a determination by the Committee, the Company, subject to the
terms of the Plan and this Agreement, hereby grants to the Employee as a matter of separate inducement and agreement, and in addition to and not in lieu of salary or other compensation for services,
the right to purchase (hereinafter referred to as the "Option") an aggregate of [    ] shares of Common Stock, subject to adjustment as provided in the Plan (such
shares, as adjusted, hereinafter being referred to as the "Shares"). The Option is intended to qualify as an incentive stock option pursuant to Section 422 of the Code, and such qualification
is subject to appropriate shareholder approval of the Plan in accordance with the requirements of Section 422 of the Code, and the regulations promulgated thereunder. In the event that
appropriate shareholder approval of the Plan is not obtained within twelve (12) months of the date the plan is
adopted, the Option will not qualify as an Incentive Stock Option, but instead will be treated as an Non-Qualified Stock Option. 

        3.    Purchase Price.    The purchase price of Shares covered by the Option will be the amount per share set forth in
column 1 of Schedule A hereto, being not less than the percentage of the Fair Market Value of one share of Common Stock on the Date of Grant set
forth in column 2 of Schedule A hereto, subject to adjustment as provided in the Plan. 

        4.    Exercise of Option.    The Option shall be exercisable on the terms and conditions hereinafter set forth: 

        (a)   The
Option shall vest and become exercisable cumulatively on the dates indicated in column 3 of Schedule A hereto;
provided, the Employee is on each such date employed by or performing services for the Company. 

        (b)   The
Option may be exercised pursuant to the provisions of this Section 4, by notice and payment to the Company as provided in Sections 10 and 14 hereof. 

        (c)   Notwithstanding
the above, the Option may not be exercised prior to the consummation of an initial public offering of any class of the Company's equity securities. 

        5.    Term of Option.    The term of the Option shall commence on the Date of Grant and shall continue for the period
of years specified in column 4 of Schedule A hereto, subject to earlier 

termination
or cancellation as provided in the Plan or this Agreement. This Option, to the extent unexercised, shall expire on the day immediately prior to the date specified in column 5 of  Schedule A hereto.

        6.    Non-transferability of Option.    The Option, and any rights or interests therein, shall not be
sold, exchanged, transferred or assigned or otherwise disposed of in any way at any time by the Employee (or any beneficiary(ies) of the Employee), other than by testamentary disposition by the
Employee or the laws of descent and distribution. The Option shall not be pledged, encumbered or otherwise hypothecated in any way at any time by the Employee (or any beneficiary(ies) of the Employee)
and shall not be subject to execution, attachment or similar legal process. Any attempt to sell, exchange, pledge, transfer assign, encumber or otherwise dispose of or hypothecate the Option, or the
levy of any execution, attachment or similar legal process upon the Option contrary to the terms of this Agreement and/or the Plan shall be null and void and without legal force or effect. 

        7.    Exercise Upon Cessation of Employment.    (a) If the Employee ceases to be employed by the Company or any
Parent or Subsidiary (i) by reason of his or her discharge for Good Cause, (ii) by reason of his or her discharge as a result of the Employee's violation of any provision of
Section 21 of this Agreement (or any other restrictive covenant by which the Employee is bound), or (iii) due to his or her voluntary termination of employment without the written
consent of the Committee, then upon such cessation of employment, the Option, whether vested or unvested, shall terminate immediately and the Employee shall forfeit all rights hereunder. If the
Employee at any time violates any provision of Section 21 of this Agreement and does not cease to be employed by the Company or any Parent or Subsidiary as a result of such violation, then upon
such violation, the Option, whether vested or unvested, shall terminate immediately and the Employee shall forfeit all rights hereunder; provided,  however,
that the Company shall have the right, in its sole discretion, to elect not to terminate the Option in whole or in part. If, however, the
Employee ceases to be employed the Company or by any Parent or Subsidiary for any other reason (other than Disability or death), then the unvested portion of the Option shall be cancelled on the date
of such cessation of employment and the vested portion of the Option shall continue to be exercisable by the Employee at any time within the period specified in column 6 of  Schedule A hereto after
such cessation of employment, at the end of which period the Option, to the extent not then exercised, shall terminate
and the Employee shall forfeit all rights hereunder, even if the Employee subsequently returns to the employ of the Company or any Parent or Subsidiary. In no event, however, may the Option be
exercised after the expiration of the term provided in Section 5 hereof. 

        (b)   The
Option shall not be affected by any change of duties or position of the Employee so long as the Employee continues to be an a full-time Employee (as
defined by the Plan) of the Company or of any Parent or Subsidiary. If the Employee is granted a temporary leave of absence, such leave of absence shall be deemed a continuation of his or her
employment by the Company or any Parent or Subsidiary for the purposes of this Agreement, but only if and so long as the employing corporation consents in writing thereto. 

        8.    Exercise Upon Death or Disability.    (a) In the event that the Employee ceases to be Employed by the
Company or by any Parent or Subsidiary due to the Employee's death, the unvested portion of the Option shall be cancelled on such date of death and the vested portion of the Option may be exercised by
the estate of the Employee (or by the person or persons who acquire the right to exercise the Option by written designation of the Employee) at any time within the period specified in column 7 of  Schedule A hereto after the date of the Employee's death. In no event, however, may the Option be exercised after the expiration of the term
provided in Section 5 hereof. 

        (b)   In
the event that the Employee ceases to be employed by the Company or by any Parent or Subsidiary due to the Employee's Disability, the unvested portion of the Option
shall be cancelled upon such cessation of employment and the vested portion of the Option may be exercised by the Employee within the period specified in column 7 of  Schedule A hereto after the
date of such termination of employment, at the end of which period, the Option, to the extent not then exercised,
shall terminate and the Employee shall forfeit all rights hereunder, even if the 

Employee
subsequently returns to the employ of the Company or any Parent or Subsidiary. In no event, however, may the Option be exercised after the expiration of the term provided in Section 5
hereof. 

        9.    Registration.    At the time of issuance, the Shares subject hereto and issuable upon the exercise hereof may or
may not be registered under the Securities Act of 1933, as amended. The Company may register or qualify the Shares subject to the Option for sale pursuant to the Securities Act of 1933, as amended, at
any time prior to or after the exercise in whole or in part of the Option. 

        10.    Method of Exercise of Option.    (a) Subject to the terms and conditions of this Agreement, the Option
shall be exercisable by written notice in the manner set forth in Exhibit A hereto (the "Notice") and upon payment to the Company in accordance with the procedure prescribed herein. Each Notice
shall: 

          (i)  state
the election to exercise the Option and the number of Shares with respect to which it is being exercised; 

         (ii)  contain
a representation and agreement as to investment intent with respect to such Shares, in a form satisfactory to counsel to the Company; 

        (iii)  be
signed by the Employee or the person or persons entitled to exercise the Option and, if the Option is being exercised by any person or persons other than the
Employee, be accompanied by proof, satisfactory to counsel to the Company, of the right of such other person or persons to exercise the Option; 

        (iv)  be
accompanied with payment of the full purchase price for the Shares to be purchased pursuant to such exercise of the Option; and 

         (v)  be
received by the Company on or before the date of the expiration of this Option. In the event the date of expiration of this Option falls on a day which is not a
regular business day at the Company's
executive office in New York, New York, then such Notice must be received at such office on or before the last regular business day prior to such date of expiration. 

        (b)   The
purchase price of any Shares in respect of which the Option is exercised, shall be payable by the Employee and shall accompany the Notice. Such purchase price shall
be payable (i) by payment in cash, certified check, bank draft or money order payable to the order of the Company, (ii) if acceptable to the Committee, by delivery of that number of
shares of Common Stock already owned by the Employee [or his or her designee] for at least six (6) months, having a fair market value equal to the purchase price for the
portion exercised, or (iii) by any other method established by the Committee in its sole discretion. 

        (c)   The
Option shall be deemed to have been exercised with respect to any particular Shares if, and only if, the preceding provisions of this Section 10 and the
provisions of Section 11 hereof shall have been complied with, in which event the Option shall be deemed to have been exercised on the date the Notice and related payment were received by the
Company. Anything in this Agreement to the contrary notwithstanding, any Notice given pursuant to the provisions of this Section 10 shall be void and of no effect if all of the preceding
provisions of this Section 10 and the provisions of Section 11 shall not have been complied with. 

        (d)   The
certificate or certificates for Shares as to which the Option shall be exercised will be registered in the name of the Employee (or in the name of the Employee's
estate or other beneficiary if the Option is exercised after the Employee's death), or if the Option is exercised by the Employee and if the Employee so requests in the Notice, the Shares will be
registered in the name of the Employee and another person jointly, with right of survivorship. The certificate or certificates for Shares will be delivered as soon as practical after the date the
Notice is received by the Company, but only upon compliance with all of the provisions of this Agreement. 

        (e)   If
the Employee fails to accept delivery of all or any part of the number of Shares specified in his/her Notice, his or her right to exercise the Option with respect to
such undelivered Shares may be terminated in the sole discretion of the Committee. The Option may be exercised only with respect to full Shares. 

        (f)    The
Company shall not be required to issue or deliver any certificate or certificates for Shares purchased upon the exercise of any part of the Option prior to the
payment to the Company, upon its demand, of any amount requested by the Company for the purpose of satisfying its liability, if any, to withhold federal, state or local income or earnings tax or any
other applicable tax or assessment (plus interest or penalties thereon, if any, caused by a delay in making such payment) incurred by reason of the exercise of this Option or the transfer of Shares
thereupon. Such payment shall be made by the Employee in cash or, with the written consent of the Company, by tendering to the Company shares of
Common Stock equal in value to the amount of the required withholding. In the alternative, the Company may, at its option, satisfy such withholding requirements by withholding from the Shares to be
delivered to the Employee pursuant to an exercise of the Option a number of Shares equal in value to the amount of the required withholding. 

        11.    Approval of Counsel.    The exercise of the Option and the issuance and delivery of Shares pursuant thereto
shall be subject to approval by the Company's counsel of all legal matters in connection therewith, including, but not limited to, compliance with the requirements of the Securities Act of 1933, as
amended, (the "Securities Act") and the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder, and the requirements of any stock exchange or automated trading medium
upon which the Common Stock may then be listed or traded. 

        12.    Resale of Shares of Common Stock.    (a) If requested by the Company, upon any sale or transfer of the
Shares purchased upon exercise of the Option (subject to the provisions of Section 12(b) hereof), the Employee shall deliver to the Company an opinion of counsel satisfactory to the Company to
the effect that either (i) the Shares to be sold or transferred has been registered under the Securities Act and that there is in effect a current prospectus meeting the requirements of
Section 10(a) of said Act which is being or will be delivered to the purchaser or transferee at or prior to the time of delivery of the certificates evidencing the Shares to be sold or
transferred, or (ii) such Shares may then be sold without violating any provision of said Act. 

        (b)   The
Employee agrees that, if requested by the Company or any representative of the underwriters (the "Managing Underwriter") in connection with any registration of the
offering of any securities of the Company under the Securities Act, the Employee will not sell or otherwise transfer any Shares or other securities of the Company during the one (1) year period
(or a shorter period as may be requested in writing by the Managing Underwriter with respect to Shares owned by the Company's senior management) (the "Market Standoff Period") following the effective
date of a registration statement of the Company filed under the Securities Act. Such restriction shall apply only to the first registration statement of the Company to become effective under the
Securities Act that includes securities to be sold on behalf of the Company to the public in an underwritten public offering under the Securities Act. The Company may impose stop-transfer
instructions with respect to securities subject to the foregoing restrictions until the end of such Market Standoff Period. 

        (c)   The
Shares issued upon exercise of the Option shall bear the following (or similar) legend, and one or more other restrictive legends, if required by counsel for the
Company: 

THE
SHARES EVIDENCED BY THIS CERTIFICATE MAY NOT BE SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF UNLESS THEY HAVE FIRST BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR UNLESS, IN THE OPINION OF COUNSEL FOR THE COMPANY, SUCH REGISTRATION IS NOT REQUIRED. 

        13.    Limitation of Action.    The Employee and the Company hereby acknowledge that every right of action arising out
of or in connection with the Plan or this Agreement, accruing to him or her or it, as the case may be, against the Company or a Parent or Subsidiary, on the one hand, or against the Employee, on the
other hand, shall cease and be barred by the expiration of three years from the date of the act or omission in respect of which such right of action arises, irrespective of the place where such action
may be brought. 

        14.    Notices.    Each notice relating to this Agreement shall be in writing and delivered in person, by recognized
overnight courier or by certified mail to the proper address. All notices to the Company or the Committee shall be addressed to them at 100 Wall Street, New York, New York 10005, Attn: General
Counsel. All notices to the Employee shall be addressed to the Employee at the Employee's address above specified. Anyone to whom a notice may be given under this Agreement may designate a new address
by notice to that effect. 

        15.    Benefits of Agreement.    This Agreement shall inure to the benefit of the Company, the Employee and their
respective heirs, executors, administrators, personal representatives, successors and permitted assignees. 

        16.    Severability.    In the event that any one or more provisions of this Agreement shall be deemed to be illegal
or unenforceable, such illegality or unenforceability shall not affect the validity and enforceability of the remaining legal and enforceable provisions hereof, which shall be construed as if such
illegal or unenforceable provision or provisions had not been inserted. 

        17.    Governing Law, Choice of Law, Jurisdiction and Venue.    This Agreement has been negotiated and shall be
consummated in the State of New York and shall be governed by and construed in accordance with the laws of the State of New York, without regard to its principles of conflicts of law. The parties
hereto irrevocably consent to the jurisdiction of the courts of the State of New York located within the County of New York and to any federal court located in the Southern District of the State of
New York in connection with any action or proceeding arising out of or relating to this Agreement, any document or instrument delivered pursuant to, in connection with or simultaneously with this
Agreement, or a breach of this Agreement or any such document or instrument; provided, however, if the
federal courts have subject matter jurisdiction, any action shall be commenced and maintained there. In any such action or proceeding, each party hereto waives personal service of any summons,
complaint or other process and agrees that service thereof may be made in accordance with Section 14. Within 30 days after such service, or such other time as may be mutually agreed upon
in writing by the attorneys for the parties to such action or proceeding, the party served shall appear or answer such summons, complaint or other process. Should the party served fail to appear or
answer within such 30-day period or such extended period, as the case may be, such party shall be deemed in default and judgment may be entered against such party for the amount as
demanded in any summons, complaint or other process so served. 

        18.    Acknowledgment of Employee.    The Employee represents and warrants that as of the Date of Grant of the Option,
he/she does not own (within the meaning of Section 422(b)(6) of the Code) shares possessing more than 10% of the total combined voting power of all classes of shares of the Company or of any
Parent or Subsidiary. 

        19.    Employment.    Nothing contained in this Agreement shall be construed as (a) a contract of employment
between the Employee and the Company or any Parent or Subsidiary, (b) a right of the Employee to continue to be in the employ of the Company or any Parent or Subsidiary, or (c) a
limitation of the right of the Company or any Parent or Subsidiary to discharge the Employee at any time, with or without Good Cause 

        20.    Dividend Rights.    The Employee shall not have any rights to dividends or any other rights of a stockholder
with respect to any Shares subject to the Option until such Shares have been issued to him or her (as evidenced by the appropriate entry on the books of the Company or a duly authorized transfer agent
of the Company). 

        21.    Special Rules Regarding Non-Competition, Proprietary Information, Etc.    For purposes of this
Agreement, the following rules apply: 

        (a)    Nondisclosure of Confidential and Proprietary Information    

          (i)  The
Employee hereby acknowledges that during the term of this Agreement, he/she will have access to and possession of trade secrets, confidential information and
proprietary information (collectively, and as defined more extensively below, "Confidential Information") of the Company, and in some instances, its Parents, Affiliates and Subsidiaries (collectively
referred to as "Related Entities") and their respective clients. The Employee hereby recognizes and acknowledges that this Confidential Information is valuable, special and unique to the business of
the Company and its Related Entities, and that access to and knowledge of such Confidential Information is essential to the performance of Employee's duties to the Company and/or its Related Entities.
The Employee hereby agrees that during
his/her employment relationship with the Company and/or its Related Entities, the Employee will keep secret and will not use or disclose any Confidential Information to any person or entity, in any
fashion and for any purpose whatsoever, except at the request of the Company. 

         (ii)  For
purposes of this Agreement, the term "Confidential Information", includes, but is not limited to, information written, in digital form, in graphic form,
electronically stored, orally transmitted or memorized concerning or relating to GFI Group Inc. or any of its Related Entities, including all customer pricing information, telephone numbers,
addresses of and personal information about traders and other dealer representatives, profit and loss statements, productivity data, financial models, computer software programs, source and other
codes, information about direct communication lines, electronic and voice trading systems, screen systems and wiring instructions, all information about the Company's business prospects and
opportunities, and all other information about or gained from any customer or client to which the Company or its Related Entities provides services during the Employee's employment with the Company or
any Parent or Subsidiary. This clause shall not apply to any confidential information which enters the public domain other than through the Employee's default. 

        (iii)  pursuant
to any applicable Company policy or as the Employee may otherwise be directed by the Employee's supervisor, the Employee hereby agrees to maintain proper
files and records relating to work performed by the Employee pursuant to any employment relationship with the Company and/or any Parent or Subsidiary. All such files and records are the exclusive
property of the Company and shall be delivered to the Company within five (5) business days following the termination of the Employee's employment with the Company and any Parent or Subsidiary.
The Employee hereby further agrees to store and maintain all Confidential Information in a secure place pursuant to the standard policies and procedures of the Company as in effect from time to time. 

        (b)    Assignment of Inventions and Intellectual Property    

          (i)  For
purposes of this Agreement, the term "Proprietary Rights" means all trade secret, trademark, service mark, patent, copyright, mask work and other intellectual
property rights throughout the world. The term "Inventions" means all Proprietary Rights, inventions, ideas, processes, formulas, source and object codes, data, programs, technology, writings,
software programs, other works of authorship, know-how, discoveries, developments, designs, schematics, manuals, drawings, techniques, development tools or computer printouts (or any
related improvements or modifications to the foregoing). 

         (ii)  The
Employee hereby assigns and agrees to assign in the future (when any Inventions or Proprietary Rights are first reduced to practice or first fixed in a tangible
medium, as applicable) to the Company all right, title and interest in any and all Inventions and Proprietary Rights whether or not they are able to be patented or registered under copyright or
similar statutes, which are made, conceived, reduced to practice or learned by the Employee, either alone or jointly with others, during or after the Employee's employment with the Company or any
Parent or 

Subsidiary,
which (a) relate to methods, apparatus, designs, products, processes or devices which are sold, leased, used or under construction or development by the Company or its Related
Entities, or otherwise relate to or pertain to the business, functions, operations, research or development of the Company and its Related Entities, (b) arise (wholly or partly) from the
Employee's efforts during any time that the Employee is employed by the Company or any Parent or Subsidiary or utilizing any physical or intellectual property owned or leased by the Company or its
Related Entities, or (c) is based on any information or knowledge gained by the Employee within the scope of the Employee's employment with the Company or any Parent or Subsidiary. 

        (iii)  During
the Employee's employment with the Company and any Parent or Subsidiary and for twelve (12) months thereafter (the "Restriction Period"), the Employee
will promptly disclose to the Company, fully and in writing, all Inventions required to be assigned to the Company under Section 20(b)(ii) above which were authored, conceived or reduced
to practice by the Employee and all patent applications filed by the Employee or on the Employee's behalf either alone or jointly with others. 

        (iv)  The
Employee hereby acknowledges that all original works of authorship which are made by the Employee (solely or jointly with others) within the scope of the Employee's
employment and which may be protected by copyright are "works made for hire," pursuant to United States Copyright Act (17 U.S.C. Section 101) and are the property of the Company, without
limitation, including, but not limited to the sole and exclusive right to reproduce such works in multiple copies for distribution or sale to the public and to create and exploit derivative works
based thereon. 

        (c)    No Inducement or Employment of Other Employees    

        During
the Restriction Period, the Employee hereby agrees not to induce, employ, solicit the employment of, attempt to affiliate for profit with, or otherwise encourage, directly or
indirectly, any employee of, or any independent contractor performing services for, the Company, or any Related Entities, to leave the employ of, or to cease rendering services to the Company or any
Related Entities, for the benefit of the Employee, or any other party, or to assist any enterprise to employ any person employed by or any independent contractor performing services for the Company or
any Related Entities. 

        (d)    Non-Solicitation, Non-Competition    

          (i)  During
the Restriction Period, the Employee hereby agrees to refrain from, directly or indirectly, accepting business from, doing business with, inducing or soliciting
any customers or vendors of the Company or any Related Entities, to or on behalf of whom the Employee rendered any services during the course of the Employee's employment with the Company and any
Parent or Subsidiary, except as authorized in writing by the Company. 

         (ii)  During
the Restriction Period, the Employee will not, directly or indirectly, as an individual proprietor, partner, stockholder, officer, employee, director, joint
venturer, investor, lender, consultant, or in any other capacity (other than as the direct or indirect passive holder of not more than one percent (1%) of the combined voting power of the outstanding
stock of a publicly held company), develop, design, produce, market, sell or render (or assist any other person in developing, designing, producing, marketing, selling or rendering) products or
services competitive with those developed, designed, produced, marketed, sold or rendered by the Company or any Related Entities while the Employee was employed by the Company or any Parent or
subsidiary. 

        (e)    Company Rights    

        In
the event that the Employee fails to comply with any of the provisions of this Section 21, the Company may, as provided in Section 7 above, terminate the Option. 

        IN
WITNESS WHEREOF, the parties have executed this Agreement as of the Date of Grant set forth above. 

	 	 	GFI Group Inc.
	

 	
 	

By:	
 	

 
	 	 	 	 	
[Stephen J. McMillan]

Chief Operating Officer
	

 	
 	

[                  ]
	

ATTEST:	
 	

 	
 	

 
	

 	
 	

 Social Security Number

EXHIBIT A  

 
 

INCENTIVE OPTION EXERCISE FORM    
    

[DATE]                   

GFI
Group Inc.

100 Wall Street

New York, New York 10005

Attention: General Counsel 

Dear
Sir: 

        Pursuant
to the provisions of the Incentive Stock Option Agreement dated on the            day of            ,
200            (the "Agreement"), whereby you granted to me an
Incentive Stock Option (the "Option") to purchase up to                        shares of the Class B Common Stock (the
"Shares") of GFI Group Inc. (the "Company") subject to the terms of the
Agreement, I hereby notify you that I elect to exercise my option to purchase            of the Shares subject to such Option at the
$            per share price specified therein. In full
payment of the price for the Shares being purchased hereby, I am delivering to you herewith (i) cash, a certified check, bank draft or money order payable to the order of the Company in the
amount of $            , or (ii) a stock certificate or certificates for            shares of Common Stock of the Company,
which I have owned for at least six (6) months and which
have a fair market value as of the date hereof of $                        , [and a certified check, bank draft or money order
payable to the order of the Company, in the amount of
$                        ]. Any such stock certificate or certificates are endorsed, or are accompanied by an appropriate stock
power, to the order of the Company, with my signature and are
guaranteed by a bank or trust company or by a member firm of the New York Stock Exchange. I hereby acknowledge that I am purchasing these shares for investment purposes only and not for resale in
violation of any federal or state securities laws. 

	 	 	Very truly yours,
	

 	
 	

 [Address]

(For notices, reports, dividend checks and

other communications to stockholders.)

 
 

SCHEDULE A    
    

[Name]

Number of Shares: [            ] 

	1
	 	2
	 	3
	 	4
	 	5
	 	6

	$[            ]	 	100%	 	[            ] options vest on [            ], 200        ;
[            ] options vest on [            ], 200        ;
[            ] options vest on [            ], 200        and
[            ] options vest on [            ], 200        	 	Ten years.	 	[            ], 20        	 	Three months

OPTION NO. 01-NQO-[            ] 

GFI Group Inc.  

 2002 Stock Option Plan  

NON-QUALIFIED STOCK OPTION  

 Granted To

[                        ]

	    	 	 
	    	 	 
	Number of Shares: [            ]	 	Price per Share: $[                        ]
	

Date Granted: [                        ], 200    	
 	

Expiration Date: [                        ],
20        

 
 

NON-QUALIFIED STOCK OPTION AGREEMENT    
    

        AGREEMENT made as of this [    ] day of [    ], 200            (the "Date of Grant")
between GFI Group Inc., a Delaware corporation (hereinafter referred to as the "Company"), and [            ], residing
at                        (hereinafter referred to as
the "Employee"). 

 
 

W I T N E S S E T H:

        WHEREAS,
the Company desires, in connection with the employment of the Employee and in accordance with its 2002 Stock Option Plan (the "Plan"), to provide the Employee with an
opportunity to acquire Class B Common Stock, par value $0.01 per share (hereinafter referred to as "Common Stock"), of the Company on favorable terms and thereby increase his or her proprietary
interest in the continued progress and success of the business of the Company; 

        NOW,
THEREFORE, in consideration of the promises and the mutual covenants herein set forth and other good and valuable consideration, the Company and the Employee hereby agree as
follows: 

        1.    Incorporation By Reference; Plan Document Receipt.    This Agreement is subject in all respects to the terms
and provisions of the Plan (including, without limitation, any amendments thereto adopted at any time and from time to time unless such amendments are expressly intended not to apply to the grant of
the option hereunder), all of which terms and provisions are made a part of and incorporated in this Agreement as if they were each expressly set forth herein. Any capitalized term not defined in this
Agreement shall have the same meaning as is ascribed thereto under the Plan. The Employee hereby acknowledges receipt of a true copy of the Plan and that the Employee has read the Plan carefully and
fully understands its content. In the event of any conflict between the terms of this Agreement and the terms of the Plan, the terms of the Plan shall control. 

        2.    Confirmation of Grant of Option.    Pursuant to a determination by the Committee, the Company, subject to the
terms of the Plan and this Agreement, hereby grants to the Employee as a matter of separate inducement and agreement, and in addition to and not in lieu of salary or other compensation for services,
the right to purchase (hereinafter referred to as the "Option") an aggregate of [            ] shares of Common Stock, subject to adjustment as provided in the Plan (such
shares, as adjusted, hereinafter being referred to as the "Shares"). The Option is not intended to qualify as an incentive stock option under
Section 422 of the Internal Revenue Code of 1986, as amended (the "Code"). 

        3.    Purchase Price.    The purchase price of Shares covered by the Option will be the amount per share set forth in
column 1 of Schedule A hereto. 

        4.    Exercise of Option.    The Option shall be exercisable on the terms and conditions hereinafter set forth: 

        (a)   The
Option shall vest and become exercisable cumulatively on the dates indicated in column 3 of Schedule A hereto;  provided, the Employee is on each such
date employed by or performing services for the Company. 

        (b)   The
Option may be exercised pursuant to the provisions of this Section 4, by notice and payment to the Company as provided in Sections 10 and 14 hereof. 

        (c)   Notwithstanding
the above, the Option may not be exercised prior to the consummation of an initial public offering of any class of the Company's equity securities. 

        5.    Term of Option.    The term of the Option shall commence on the Date of Grant and shall continue for the period
of years specified in column 4 of Schedule A hereto, subject to earlier termination or cancellation as provided in the Plan or this Agreement.
This Option, to the extent unexercised, shall expire on the day immediately prior to the date specified in column 5 of Schedule A hereto. 

        6.    Non-transferability of Option.    The Option, and any rights or interests therein, shall not be
sold, exchanged, transferred, assigned or otherwise disposed of in any way at any time by the Employee 

(or
any beneficiary(ies) of the Employee), other than by testamentary disposition by the Employee or the laws of descent and distribution. The Option shall not be pledged, encumbered or otherwise
hypothecated in any way at any time by the Employee (or any beneficiary(ies) of the Employee) and shall not be subject to execution, attachment or similar legal process. Any attempt to sell, exchange,
pledge, transfer, assign, encumber or otherwise dispose of or hypothecate the Option, or the levy of any execution, attachment or similar legal process upon the Option, contrary to the terms of this
Agreement and/or the Plan shall be null and void and without legal force or effect. 

        7.    Exercise Upon Cessation of Employment.    (a) If the Employee ceases to be employed by the Company or by
any Parent or Subsidiary (i) by reason of his or her discharge for Good Cause, (ii) by reason of his or her discharge as a result of the Employee's violation of any provision of
Section 20 of this
Agreement (or any other restrictive covenant by which the Employee is bound), or (iii) due to his or her voluntary termination of employment without the written consent of the Committee, then
upon such cessation of employment, the Option, whether vested or unvested, shall terminate immediately and the Employee shall forfeit all rights hereunder. If the Employee at any time violates any
provision of Section 20 of this Agreement and does not cease to be employed by the Company or any Parent or Subsidiary as a result of such violation, then upon such violation, the Option,
whether vested or unvested, shall terminate immediately and the Employee shall forfeit all rights hereunder; provided,  however, that the Company shall have
the right, in its sole discretion, to elect not to terminate the Option in whole or in part. If, however, the
Employee ceases to be employed by the Company or by any Parent or Subsidiary for any other reason (other than Disability or death), then the unvested portion of the Option shall be cancelled on the
date of such cessation of employment and the vested portion of the Option shall continue to be exercisable by the Employee at any time within the period specified in column 6 of  Schedule A hereto
after such cessation of employment, at the end of which period, the Option, to the extent not then exercised, shall terminate
and the Employee shall forfeit all rights hereunder, even if the Employee subsequently returns to the employ of the 

        Company
or any Parent or Subsidiary. In no event, however, may the Option be exercised after the expiration of the term provided in Section 5 hereof. 

        (b)   The
Option shall not be affected by any change of duties or position of the Employee so long as the Employee continues to be an a full-time Employee (as
defined by the Plan) of the Company or of any Parent or Subsidiary. If the Employee is granted a temporary leave of absence, such leave of absence shall be deemed a continuation of his or her
employment by the Company or by any Parent or Subsidiary for the purposes of this Agreement, but only if and so long as the employing corporation consents in writing thereto. 

        8.    Exercise Upon Death or Disability.    (a) In the event that the Employee ceases to be Employed by the
Company or by any Parent or Subsidiary due to the Employee's death, the unvested portion of the Option shall be cancelled on such date of death and the vested portion of the Option may be exercised by
the estate of the Employee (or by the person or persons who acquire the right to exercise the Option by written designation of the Employee) at any time within the period specified in column 7 of  Schedule A hereto after the date of the Employee's death. In no event, however, may the Option be exercised after the expiration of the term
provided in Section 5 hereof. 

        (b)   In
the event that the Employee ceases to be employed by the Company or by any Parent or Subsidiary due to the Employee's Disability, the unvested portion of the Option
shall be cancelled upon such cessation of employment and the vested portion of the Option may be exercised by the Employee within the period specified in column 7 of  Schedule A hereto after the
date of such termination of employment, at the end of which period, the Option, to the extent not then exercised,
shall terminate and the Employee shall forfeit all rights hereunder, even if the Employee subsequently returns to the employ of the Company or any Parent or Subsidiary. In no event, however, may the
Option be exercised after the expiration of the term provided in Section 5 hereof. 

        9.    Registration.    At the time of issuance, the Shares subject hereto and issuable upon the exercise hereof may
or may not be registered under the Securities Act of 1933, as amended. The 

Company
may register or qualify the Shares subject to the Option for sale pursuant to the Securities Act of 1933, as amended, at any time prior to or after the exercise in whole or in part of the
Option. 

        10.    Method of Exercise of Option.    (a) Subject to the terms and conditions of this Agreement, the Option
shall be exercisable by written notice in the manner set forth in Exhibit A hereto (the "Notice") and upon payment to the Company in accordance with the procedure prescribed herein. Each Notice
shall: 

          (i)  state
the election to exercise the Option and the number of Shares with respect to which it is being exercised; 

         (ii)  contain
a representation and agreement as to investment intent with respect to such Shares, in a form satisfactory to counsel to the Company; 

        (iii)  be
signed by the Employee or the person or persons entitled to exercise the Option and, if the Option is being exercised by any person or persons other than the
Employee, be accompanied by proof, satisfactory to counsel to the Company, of the right of such other person or persons to exercise the Option; 

        (iv)  be
accompanied with payment of the full purchase price for the Shares to be purchased pursuant to such exercise of the Option; and 

         (v)  be
received by the Company on or before the date of the expiration of this Option. In the event the date of expiration of this Option falls on a day which is not a
regular business day at the Company's executive office in New York, New York, then such Notice must be received at such office on or before the last regular business day prior to such date of
expiration. 

        (b)   The
purchase price of any Shares in respect of which the Option is exercised, shall be payable by the Employee and shall accompany the Notice. Such purchase price shall
be payable (i) by payment in cash, certified check, bank draft or money order payable to the order of the Company, (ii) if acceptable to the Committee, by delivery of that number of
shares of Common Stock already owned by the Employee [or his or her designee] for at least six (6) months, having a fair market value equal to the purchase price for the
portion exercised, or (iii) by any other method established by the Committee in its sole discretion. 

        (c)   The
Option shall be deemed to have been exercised with respect to any particular Shares if, and only if, the preceding provisions of this Section 10 and the
provisions of Section 11 hereof shall have been complied with, in which event the Option shall be deemed to have been exercised on the date the Notice and related payment were received by the
Company, Anything in this Agreement to the contrary notwithstanding, any Notice given pursuant to the provisions of this Section 10 shall be void and of no effect if all of the preceding
provisions of this Section 10 and the provisions of Section 11 shall not have been complied with. 

        (d)   The
certificate or certificates for Shares as to which the Option shall be exercised will be registered in the name of the Employee (or in the name of the Employee's
estate or other beneficiary if the Option is exercised after the Employee's death), or if the Option is exercised by the Employee and if the Employee so requests in the Notice, the Shares will be
registered in the name of the Employee and another person jointly, with right of survivorship. The certificate or certificates for Shares will be delivered as soon as practical after the date the
Notice is received by the Company, but only upon compliance with all of the provisions of this Agreement. 

        (e)   If
the Employee fails to accept delivery of all or any part of the number of Shares specified in his/her Notice, his or her right to exercise the Option with respect to
such undelivered Shares may be terminated in the sole discretion of the Committee. The Option may be exercised only with respect to full Shares. 

        (f)    The
Company shall not be required to issue or deliver any certificate or certificates for Shares purchased upon the exercise of any part of the Option prior to the
payment to the 

Company,
upon its demand, of any amount requested by the Company for the purpose of satisfying its liability, if any, to withhold federal, state or local income or earnings tax or any other applicable
tax or assessment (plus interest or penalties thereon, if any, caused by a delay in making such payment) incurred by reason of the exercise of this Option or the transfer of Shares thereupon. Such
payment shall be made by the Employee in cash or, with the written consent of the Company, by tendering to the Company shares of Common Stock equal in value to the amount of the required withholding.
In the alternative, the Company may, at its option, satisfy such withholding requirements by withholding from the Shares to be delivered to the Employee pursuant to an exercise of the Option a number
of Shares equal in value to the amount of the required withholding. 

        11.    Approval of Counsel.    The exercise of the Option and the issuance and delivery of Shares pursuant thereto
shall be subject to approval by the Company's counsel of all legal matters in connection therewith, including, but not limited to, compliance with the requirements of the Securities Act of 1933, as
amended, (the "Securities Act") and the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder, and the requirements of any stock exchange or automated trading medium
upon which the Common Stock may then be listed or traded. 

        12.    Resale of Shares of Common Stock.    (a) If requested by the Company, upon any sale or transfer of the
Shares purchased upon exercise of the Option (subject to the provisions of Section 12(b) hereof), the Employee shall deliver to the Company an opinion of counsel satisfactory to the Company to
the effect that either (i) the Shares to be sold or transferred has been registered under the Securities Act and that there is in effect a current prospectus meeting the requirements of
Section 10(a) of said Act which is being or will be delivered to the purchaser or transferee at or prior to the time of delivery of the certificates evidencing the Shares to be sold or
transferred, or (ii) such Shares may then be sold without violating any provision of said Act. 

        (b)   The
Employee agrees that, if requested by the Company or any representative of the underwriters (the "Managing Underwriter") in connection with any registration of the
offering of any securities of the Company under the Securities Act, the Employee will not sell or otherwise transfer any Shares or other securities of the Company during the one (1) year period
(or a shorter period as may be requested in writing by the Managing Underwriter with respect to Shares owned by the Company's senior management) (the "Market Standoff Period") following the effective
date of a registration statement of the Company filed under the Securities Act. Such restriction shall apply only to the first registration statement of the Company to become effective under the
Securities Act that includes securities to be sold on behalf of the Company to the public in an underwritten public offering under the Securities Act. The Company may impose stop-transfer
instructions with respect to securities subject to the foregoing restrictions until the end of such Market Standoff Period. 

        (c)   The
Shares issued upon exercise of the Option shall bear the following (or similar) legend, and one or more other restrictive legends, if required by counsel for the
Company: 

THE
SHARES EVIDENCED BY THIS CERTIFICATE MAY NOT BE SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF UNLESS THEY HAVE FIRST BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR UNLESS, IN THE OPINION OF COUNSEL FOR THE COMPANY, SUCH REGISTRATION IS NOT REQUIRED. 

        13.    Limitation of Action.    The Employee and the Company hereby acknowledge that every right of action arising
out of or in connection with the Plan or this Agreement, accruing to him or her or it, as the case may be, against the Company or a Parent or Subsidiary, on the one hand, or against the Employee, on
the other hand, shall cease and be barred by the expiration of three years from the date of the act or omission in respect of which such right of action arises, irrespective of the place where such
action may be brought. 

        14.    Notices.    Each notice relating to this Agreement shall be in writing and delivered in person, by recognized
overnight courier or by certified mail to the proper address. All notices to the Company or the Committee shall be addressed to them at 100 Wall Street, New York, New York 10005, Attn: General
Counsel. All notices to the Employee shall be addressed to the Employee at the Employee's address above specified. Anyone to whom a notice may be given under this Agreement may designate a new address
by notice to that effect. 

        15.    Benefits of Agreement.    This Agreement shall inure to the benefit of the Company, the Employee and their
respective heirs, executors, administrators, personal representatives, successors and permitted assignees. 

        16.    Severability.    In the event that any one or more provisions of this Agreement shall be deemed to be illegal
or unenforceable, such illegality or unenforceability shall not affect the validity and enforceability of the remaining legal and enforceable provisions hereof, which shall be construed as if such
illegal or unenforceable provision or provisions had not been inserted. 

        17.    Governing Law, Choice of Law, Jurisdiction and Venue.    This Agreement has been negotiated and shall be
consummated in the State of New York and shall be governed by and construed in accordance with the laws of the State of New York, without regard to its principles of conflicts of law. The parties
hereto irrevocably consent to the jurisdiction of the courts of the State of New York located within the County of New York and to any federal court located in the Southern District of the State of
New York in connection with any action or proceeding arising out of or relating to this Agreement, any document or instrument delivered pursuant to, in connection with or simultaneously with this
Agreement, or a breach of this Agreement or any such document or instrument; provided, however, if the
federal courts have subject matter jurisdiction, any action shall be commenced and maintained there. In any such action or proceeding, each party hereto waives personal service of any summons,
complaint or other process and agrees that service thereof may be made in accordance with Section 14. Within 30 days after such service, or such other time as may be mutually agreed upon
in writing by the attorneys for the parties to such action or proceeding, the party served shall appear or answer such summons, complaint or other process. Should the party served fail to appear or
answer within such 30-day period or such extended period, as the case may be, such party shall be deemed in default and judgment may be entered against such party for the amount as
demanded in any summons, complaint or other process so served. 

        18.    Employment.    Nothing contained in this Agreement shall be construed as (a) a contract of employment
between the Employee and the Company or any Parent or Subsidiary, (b) a right of the Employee to continue to be in the employ of the Company or any Parent or Subsidiary, or (c) a
limitation of the right of the Company or any Parent or Subsidiary to discharge the Employee at any time, with or without Good Cause. 

        19.    Dividend Rights.    The Employee shall not have any rights to dividends or any other rights of a stockholder
with respect to any Shares subject to the Option until such Shares have been issued to him or her (as evidenced by the appropriate entry on the books of the Company or a duly authorized transfer agent
of the Company). 

        20.    Special Rules Regarding Non-Competition, Proprietary Information, Etc.    For purposes of this
Agreement the following rules apply: 

        (a)    Nondisclosure of Confidential and Proprietary Information    

          (i)  The
Employee hereby acknowledges that during the term of this Agreement, he/she will have access to and possession of trade secrets, confidential information and
proprietary information (collectively, and as defined more extensively below, "Confidential Information") of the Company, and in some instances, its Parents, Affiliates and Subsidiaries (collectively
referred to as "Related Entities") and their respective clients. The Employee hereby recognizes and acknowledges that this Confidential Information is valuable, special and unique to the business of
the Company and its Related Entities, and that access to and knowledge of such Confidential Information is essential to the performance of Employee's duties to the Company and/or its 

Related
Entities. The Employee hereby agrees that during his/her employment relationship with the Company and/or its Related Entities, the Employee will keep secret and will not use or disclose any
Confidential Information to any person or entity, in any fashion and for any purpose whatsoever, except at the request of the Company. 

         (ii)  For
purposes of this Agreement, the term "Confidential Information", includes, but is not limited to, information written, in digital form, in graphic form,
electronically stored, orally transmitted or memorized concerning or relating to GFI Group Inc. or any of its Related Entities, including all customer pricing information, telephone numbers,
addresses of and personal information about traders and other dealer representatives, profit and loss statements, productivity data, financial models, computer software programs, source and other
codes, information about direct communication lines, electronic and voice trading systems, screen systems and wiring instructions, all information about the Company's business prospects and
opportunities, and all other information about or gained from any customer or client to which the Company or its Related Entities provides services during the Employee's employment with the Company or
any Parent or Subsidiary. This clause shall not apply to any confidential information which enters the public domain other than through the Employee's default. 

        (iii)  pursuant
to any applicable Company policy or as the Employee may otherwise be directed by the Employee's supervisor, the Employee hereby agrees to maintain proper
files and records relating to work performed by the Employee pursuant to any employment relationship with the Company and/or any Parent or Subsidiary. All such files and records are the exclusive
property of the Company and shall be delivered to the Company within five (5) business days following the termination of the Employee's employment with the Company and any Parent or Subsidiary.
The Employee hereby further agrees to store and maintain all Confidential Information in a secure place pursuant to the standard policies and procedures of the Company as in effect from time to time. 

        (b)    Assignment of Inventions and Intellectual Property    

          (i)  For
purposes of this Agreement, the term "Proprietary Rights" means all trade secret, trademark, service mark, patent, copyright, mask work and other intellectual
property rights throughout the world. The term "Inventions" means all Proprietary Rights, inventions, ideas, processes, formulas, source and object codes, data, programs, technology, writings,
software programs, other works of authorship, know-how, discoveries, developments, designs, schematics, manuals, drawings, techniques, development tools or computer printouts (or any
related improvements or modifications to the foregoing). 

         (ii)  The
Employee hereby assigns and agrees to assign in the future (when any Inventions or Proprietary Rights are first reduced to practice or first fixed in a tangible
medium, as applicable) to the Company all right, title and interest in any and all Inventions and Proprietary Rights whether or not they are able to be patented or registered under copyright or
similar statutes, which are made, conceived, reduced to practice or learned by the Employee, either alone or jointly with others, during or after the Employee's employment with the Company or any
Parent or Subsidiary, which (a) relate to methods, apparatus, designs, products, processes or devices which are sold, leased, used or under construction or development by the Company or its
Related Entities, or otherwise relate to or pertain to the business, functions, operations, research or development of the Company and its Related Entities, (b) arise (wholly or partly) from
the Employee's efforts during any time that the Employee is employed by the Company or any Parent or Subsidiary or utilizing any physical or intellectual property owned or leased by the Company or its
Related Entities, or (c) is based on any information or knowledge gained by the Employee within the scope of the Employee's employment with the Company or any Parent or Subsidiary. 

        (iii)  During
the Employee's employment with the Company and any Parent or Subsidiary and for twelve (12) months thereafter (the "Restriction Period"), the Employee
will promptly disclose to the Company, fully and in writing, all Inventions required to be assigned to the Company under Section 20(b)(ii) above which were authored, conceived or reduced
to practice by the Employee 

and
all patent applications filed by the Employee or on the Employee's behalf either alone or jointly with others. 

        (iv)  The
Employee hereby acknowledges that all original works of authorship which are made by the Employee (solely or jointly with others) within the scope of the Employee's
employment and which may be protected by copyright are "works made for hire," pursuant to United States Copyright Act (17 U.S.C. Section 101) and are the property of the Company, without
limitation, including, but not limited to the sole and exclusive right to reproduce such works in multiple copies for distribution or sale to the public and to create and exploit derivative works
based thereon. 

        (c)    No Inducement or Employment of Other Employees    

        During
the Restriction Period, the Employee hereby agrees not to induce, employ, solicit the employment of, attempt to affiliate for profit with, or otherwise encourage, directly or
indirectly, any employee of, or any independent contractor performing services for, the Company, or any Related Entities, to leave the employ of, or to cease rendering services to the Company or any
Related Entities, for the benefit of the Employee, or any other party, or to assist any enterprise to employ any person employed by or any independent contractor performing services for the Company or
any Related Entities. 

        (d)    Non-Solicitation, Non-Competition    

          (i)  During
the Restriction Period, the Employee hereby agrees to refrain from, directly or indirectly, accepting business from, doing business with, inducing or soliciting
any customers or vendors of the Company or any Related Entities, to or on behalf of whom the Employee rendered any services during the course of the Employee's employment with the Company and any
Parent or Subsidiary, except as authorized in writing by the Company. 

         (ii)  During
the Restriction Period, the Employee will not, directly or indirectly, as an individual proprietor, partner, stockholder, officer, employee, director, joint
venturer, investor, lender, consultant, or in any other capacity (other than as the direct or indirect passive holder of not more than one percent (1%) of the combined voting power of the outstanding
stock of a publicly held company), develop, design, produce, market, sell or render (or assist any other person in developing, designing, producing, marketing, selling or rendering) products or
services competitive with those developed, designed, produced, marketed, sold or rendered by the Company or any Related Entities while the Employee was employed by the Company or any Parent or
subsidiary. 

        (e)    Company Rights    

        In
the event that the Employee fails to comply with any of the provisions of this Section 20, the Company may, as provided in Section 7 above, terminate the Option. 

        IN
WITNESS WHEREOF, the parties have executed this Agreement as of the Date of Grant set forth above. 

	 	 	GFI Group Inc.
	

 	
 	

By:	
 	

 
	 	 	 	 	
[Stephen J. McMillan]

Chief Operating Officer
	

 	
 	

[                  ]
	

ATTEST:	
 	

 	
 	

 
	

 	
 	

 Social Security Number

EXHIBIT A  

 
 

NON-QUALIFIED OPTION EXERCISE FORM    
    

[DATE]                   

GFI
Group Inc.

100 Wall Street

New York, New York 10005

Attention: General Counsel 

Dear
Sir: 

        Pursuant
to the provisions of the Non-Qualified Stock Option Agreement dated on the            day of            ,
200            (the "Agreement"), whereby you
granted to me a Non-Qualified Option (the "Option") to purchase up to                        shares of the Class B Common
Stock (the "Shares") of GFI Group Inc. (the "Company")
subject to the terms of the Agreement, I hereby notify you that I elect to exercise my option to purchase            of the Shares subject to such Option at the
$            per share price
specified therein. In full payment of the price for the Shares being purchased hereby, I am delivering to you herewith (i) cash, a certified check, bank draft or money order payable to the
order of the Company in the amount of $                        , or (ii) a stock certificate or certificates
for            shares of Common Stock of the Company, which I have owned for at least
six (6) months and which have a fair market value as of the date hereof of $                        , [and a certified check,
bank draft or money order payable to the order of the Company,
in the amount of $                        ]. Any such stock certificate or certificates are endorsed, or are accompanied by an
appropriate stock power, to the order of the Company, with my
signature and are guaranteed by a bank or trust company or by a member firm of the New York Stock Exchange. I hereby acknowledge that I am purchasing these shares for investment purposes only and not
for resale in violation of any federal or state securities laws. 

	 	 	Very truly yours,
	

 	
 	

 [Address]

(For notices, reports, dividend checks and

other communications to stockholders.)

 
 

SCHEDULE A    
    

[Name]

Number of Shares: [            ] 

	1
	 	2
	 	3
	 	4
	 	5
	 	6

	$[            ]	 	N/A	 	[            ] options vest on [            ], 200        ,
and [            ] options vest on [            ], 200        	 	Ten years	 	[            ], 20        	 	Three months

QuickLinks

GFI GROUP INC. 2002 STOCK OPTION PLAN

INTRODUCTION

I DEFINITIONS

II ADMINISTRATION

III SHARES AVAILABLE

IV ELIGIBILITY

V STOCK OPTIONS

VI ADJUSTMENT OF SHARES; MERGER OR CONSOLIDATION, ETC. OF THE CORPORATION

VII MISCELLANEOUS PROVISIONS

VIII AMENDMENT OR TERMINATION OF PLAN

IX TERM OF PLAN

INCENTIVE STOCK OPTION AGREEMENT

INCENTIVE OPTION EXERCISE FORM

SCHEDULE A

NON-QUALIFIED STOCK OPTION AGREEMENT

W I T N E S S E T H

NON-QUALIFIED OPTION EXERCISE FORM

SCHEDULE AQuickLinks
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Exhibit 10.8  

       

 GFINET INC.

2000 STOCK OPTION PLAN
  

 

Effective as of March 8, 2000  

 
 

GFINET INC.
  2000 STOCK OPTION PLAN
  
  INTRODUCTION    
    

        GFInet inc. a Delaware corporation (hereinafter referred to as the "Corporation"), hereby establishes an incentive compensation plan to be known as the  "GFInet inc. 2000 Stock Option Plan" (hereinafter referred to as the "Plan"), as set forth in this document. The Plan permits the grant of
Non-Qualified Stock Options and Incentive Stock Options. 

        The
Plan shall become effective on March 8, 2000. 

        The
purpose of the Plan is to promote the success and enhance the value of the Corporation by linking the personal interests of Optionees to those of the Corporation's stockholders by
providing Optionees with an incentive for outstanding performance. The Plan is further intended to assist the Corporation in its ability to motivate, and retain the services of, Optionees upon whose
judgment, interest and special effort the successful conduct of its and its subsidiaries' operations is largely dependent. 

 
 
 

I
  DEFINITIONS    
    

        For purposes of the Plan, the following terms shall be defined as follows unless the context clearly indicates otherwise: 

        (a)   "Affiliate" shall mean any corporation or other entity, other than a Parent, Subsidiary or Affiliate of the Corporation,
that is classified by the Board of Directors as an "Affiliate." 

        (b)   "Award Agreement" shall mean the written agreement, executed by an appropriate officer of the Corporation, pursuant to
which an Option is granted. 

        (c)   "Board of Directors" shall mean the Board of Directors of the Corporation. 

        (d)   "Code" shall mean the Internal Revenue Code of 1986, as amended, and the rules and regulations thereunder. 

        (e)   "Committee" shall mean the Board of Directors or any committee of two or more persons designated by the Board of
Directors to perform the functions of the Committee hereunder. 

        (f)    "Common Stock" shall mean the common stock of the Corporation as authorized from time to time. 

        (g)   "Consultant" shall mean an individual who is in a Consulting Relationship with the Corporation or any Parent, Subsidiary
or Affiliate. 

        (h)   "Consulting Relationship" shall mean the relationship that exists between an individual and the Corporation (or any
Parent, Subsidiary or Affiliate) if (i) such individual or (ii) any entity of which such individual is an executive officer or owns a substantial equity interest has entered into a
written consulting contract with the Corporation or any Parent, Subsidiary or Affiliate. 

        (i)    "Corporation" shall mean GFInet inc., a Delaware corporation. 

        (j)    "Disability" shall have the same meaning as the term "permanent and total disability" under Section 22(e)(3) of
the Code. 

        (k)   "Employee" shall mean a common law employee of the Corporation or of any Parent, Subsidiary or Affiliate. 

        (l)    "Exchange Act" shall mean the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder. 

        (m)  "Executive" means an employee of the Corporation or of any Parent, Subsidiary or Affiliate whose compensation is subject
to the deduction limitations set forth under Code Section 162(m). 

        (n)   "Fair Market Value" of the Corporation's Common Stock on a Trading Day shall mean the last reported sale price for Common
Stock or, in case no such reported sale takes place on such Trading Day, the average of the closing bid and asked prices for the Common Stock for such Trading Day, in either case on the principal
national securities exchange on which the Common Stock is listed or admitted to trading, or if the Common Stock is not listed or admitted to trading on any national securities exchange, but is traded
in the over-the-counter market, the closing sale price of the Common Stock or, if no sale is publicly reported, the average of the closing bid and asked quotations for the
Common Stock, as reported by the National Association of Securities Dealers Automated Quotation System ("NASDAQ") or any comparable system or, if the Common Stock is not listed on NASDAQ or a
comparable system, the closing sale price of the Common Stock or, if no sale is publicly reported, the average of the closing bid and asked prices, as furnished by two members of the National
Association of Securities Dealers, Inc. who make a market in the Common Stock selected from time to time by the Corporation for that purpose. In addition, for purposes of this definition, a
"Trading Day" shall mean, 

2

 

if
the Common Stock is listed on any national securities exchange, a business day during which such exchange was open for trading and at least one trade of Common Stock was effected on such exchange
on such business day, or, if the Common Stock is not listed on any national securities exchange but is traded in the over-the-counter market, a business day during which the
over-the-counter market was open for trading and at least one "eligible dealer" quoted both a bid and asked price for the Common Stock. An "eligible dealer" for any day shall
include any broker-dealer who quoted both a bid and asked price for such day, but shall not include any broker-dealer who quoted only a bid or only an asked price for such day. In the event the
Corporation's Common Stock is not publicly traded, the Fair Market Value of such Common Stock shall be determined by the Committee in good faith in whatever manner it considers appropriate. 

        (o)   "Good Cause" shall, with respect to any Optionee, have the equivalent meaning (or the same meaning as "cause" or "for
cause") set forth in any employment agreement between the Optionee and the Corporation or Parent, Subsidiary or Affiliate or, in the absence of any such agreement, such term shall mean
(i) except as otherwise set forth in clause (iii) below, the Optionee's continuing misconduct or willful or gross negligence in the performance of his or her duties for the Corporation
or for any Parent, Subsidiary or Affiliate after service of a thirty (30) day prior written notice (the "Thirty-Day Notice") of such misconduct or negligence, (ii) the
Optionee's intentional or habitual neglect of his or her duties for the Corporation or for any Parent, Subsidiary or Affiliate after service of a Thirty-Day Notice of such neglect,
(iii) the Optionee's theft or misappropriation of funds or other property of the Corporation or of any Parent, Subsidiary or Affiliate, fraud, criminal misconduct, breach of fiduciary duty or
dishonesty in the performance of his or her duties on behalf of the Corporation or any Parent, Subsidiary or Affiliate or conviction of a felony, or crime of moral turpitude or any other conduct
reflecting adversely upon the Corporation or any Parent, Subsidiary or Affiliate, (iv) the Optionee's violation of any covenant not to compete, not to solicit employees, customers or suppliers
of goods or services to the Company, or not to disclose confidential information with respect to the Corporation or any Parent, Subsidiary or Affiliate (including, but in no way limited to, any such
covenant included in an Award Agreement or Employment Agreement), (v) the Optionee's termination of employment with the Corporation, or any Parent, Subsidiary or Affiliate without the written
consent of such employer or (vi) the direct or indirect breach by the Optionee of the terms of a confidentiality agreement, employment agreement or consulting contract with the Corporation or
any Parent, Subsidiary or Affiliate. 

        (p)   "Good Reason" shall, with respect to any Optionee, have the equivalent meaning set forth in any employment agreement
between the Optionee and the Corporation or any Parent, Subsidiary or Affiliate or, in the absence of any such defined meaning in any such agreement, the meaning, if any, that may be set forth in the
applicable Option granted to such Optionee. 

        (q)   "Incentive Stock Option" shall mean a stock option satisfying the requirements for tax-favored treatment
under Section 422 of the Code. 

        (r)   "Non-Qualified Option" shall mean a stock option which does not satisfy the requirements for, or which is not
intended to be eligible for, tax-favored treatment under Section 422 of the Code. 

        (s)   "Option" shall mean an Incentive Stock Option or a Non-Qualified Stock Option granted pursuant to the
provisions of Section VI hereof. 

        (t)    "Optionee" shall mean an individual who is granted an Option under the terms of the Plan. 

        (u)   "Outside Directors" shall mean members of the Board of Directors of the Corporation who are classified as "outside
directors" under Section 162(m) of the Code. 

        (v)   "Parent" shall mean a parent corporation of the Corporation within the meaning of Section 424(e) of the Code. 

3

 

        (w)  "Securities Act" shall mean the Securities Act of 1933, as amended, and the rules and regulations thereunder. 

        (x)   "Subsidiary" shall mean a subsidiary corporation of the Corporation within the meaning of Section 424(f) of the
Code. 

        (y)   "Termination of Consulting Relationship" shall mean the cessation, abridgment or termination of a Consultant's Consulting
Relationship with the Corporation or any Parent, Subsidiary or Affiliate as a result of (i) the Consultant's death or Disability, (ii) the cancellation, annulment, expiration,
termination or breach of the written consulting contract between the Corporation (or any Parent, Subsidiary or Affiliate) and the Consultant (or any other entity) giving rise to the Consulting
Relationship or (iii) if the written consulting contract is not directly between the Corporation (or any Parent, Subsidiary or Affiliate) and the Consultant, the Consultant's termination of
service with, or sale of all or substantially all of his or her equity interest in, the entity which has entered into the written consulting contract with the Corporation, Parent, Subsidiary or
Affiliate. 

 
 

II
  ADMINISTRATION    
    

        The Plan shall be administered by the Committee, which shall be composed of the entire Board of Directors or of two or more Non-Employee Directors, as
defined in Rule 16b-3(b)(3) promulgated under the Exchange Act (to the extent Section 16 of the Exchange Act is applicable to Options granted hereunder) and who also qualify
as "Outside Directors" (but only with respect to the period during which Options granted hereunder are subject to the deduction limitations of Section 162(m) of the Code). Subject to the
provisions of the Plan, the Committee may establish from time to time such regulations, provisions, proceedings and conditions of awards which, in its sole opinion, may be advisable in the
administration of the Plan. A majority of the Committee shall constitute a quorum, and, subject to the provisions of Section V of the Plan, the acts of a majority of the members present at any
meeting at which a quorum is present, or acts approved in writing by all of the members of the Committee, shall be the acts of the Committee as a whole. 

 
 

III
  SHARES AVAILABLE    
    

        Subject to the adjustments provided in Section VII of the Plan, the aggregate number of shares of the Common Stock which may be granted for all purposes
under the Plan shall be 20 Million (20,000,000) shares. Shares of Common Stock underlying awards of securities (derivative or not) shall be counted against the limitation set forth in the immediately
preceding sentence and may be reused to the extent that the related Option to any individual is settled in cash, expires, is terminated unexercised, or is forfeited. Common Stock granted to satisfy
Options under the Plan may be authorized and unissued shares of the Common Stock, issued shares of such Common Stock held in the Corporation's treasury or shares of Common Stock acquired on the open
market. 

 
 

IV
  ELIGIBILITY    
    

        Officers and key employees of the Corporation (or of any Parent, Subsidiary or Affiliate) who are Employees, and Consultants, and directors of the Corporation or
of any Parent, Subsidiary or Affiliate, shall be eligible to participate in the Plan. Where appropriate under the Plan, directors who are not Employees shall be referred to as "employees" and their
service as directors as "employment". 

4

  

 
 

V
  AUTHORITY OF COMMITTEE    
    

        The Plan shall be administered by, or under the direction of, the Committee, which shall administer the Plan so as to comply at all times with Section 16
of the Exchange Act and the rules and regulations promulgated thereunder, to the extent such compliance is required, and shall otherwise have plenary authority to interpret the Plan and to make all
determinations specified in or permitted by the Plan or deemed necessary or desirable for its administration or for the conduct of the Committee's business. All interpretations and determinations of
the Committee may be made on an individual or group basis and shall be final, conclusive and binding on all interested parties. Subject to the express provisions of the Plan, the Committee shall have
authority, in its discretion, to determine the persons to whom Options shall be granted, the times when such Options shall be granted, the number of Options, the exercise price of each Option, the
period(s) during which an Option shall be exercisable (whether in whole or in part), the restrictions to be applicable to Options and the other terms and provisions thereof (which need not be
identical). In addition, the authority of the Committee shall include, without limitation, the following: 

        (a)    Financing.    The arrangement of temporary financing for an Optionee by registered broker-dealers, under the
rules and regulations of the Federal Reserve Board, for the purpose of assisting an Optionee in the exercise of an Option, such authority to include the payment by the Corporation of the commissions
of the broker-dealer; 

        (b)    Procedures for Exercise of Option.    The establishment of procedures for an Optionee (i) to exercise an
Option by payment of cash, (ii) to have withheld from the total number of shares of Common Stock to be acquired upon the exercise of an Option that number of shares having a Fair Market Value,
which, together with such cash as shall be paid in respect of fractional shares, shall equal the Option exercise price of the total number of shares of Common Stock to be acquired, (iii) to
exercise all or a portion of an Option by delivering that number of shares of Common Stock already owned by him or her having a Fair Market Value which shall equal the Option exercise price for the
portion exercised and, in cases where an Option is not exercised in its entirety, and subject to the requirements of the Code, to permit the Optionee to deliver the shares of Common Stock thus
acquired by him or her in payment of shares of Common Stock to be received pursuant to the exercise of additional portions of such Option, the effect of which shall be that an Optionee can in sequence
utilize such newly acquired shares of Common Stock in payment of the exercise price of the entire Option, together with such cash as shall be paid in respect of fractional shares and (iv) to
engage in any form of "cashless" exercise. The Committee may, in its sole discretion, require that an exercise described under any one or more of the methods described under clauses (ii),
(iii) or (iv) of the immediately preceding sentence (to the extent such exercise is, or is deemed to constitute, an exercise effected by the tendering of Common Stock) be
consummated with Common Stock (i) held by the Optionee for at least six (6) months or (ii) acquired by the Optionee other than under the Plan or a similar program. 

        (c)    Withholding.    The establishment of a procedure whereby a number of shares of Common Stock may be withheld
from the total number of shares of Common Stock to be issued upon exercise of an Option or for the tender of shares of Common Stock owned by any Optionee to meet any obligation of withholding for
taxes incurred by the Optionee upon such exercise. The Committee may, in its sole discretion, require that if any such withholding is effected by the tendering of Common Stock, such withholding shall
be consummated with Common Stock (i) held by the Optionee for at least six (6) months or (ii) acquired by the Optionee other than under the Plan or a similar program. 

5

 
 
 

VI
  STOCK OPTIONS    
    

        The Committee shall have the authority, in its discretion, to grant Incentive Stock Options or to grant Non-Qualified Stock Options or to grant both
types of Options. Notwithstanding anything contained herein to the contrary, an Incentive Stock Option may be granted only to common law employees of the Corporation or of any Parent or Subsidiary now
existing or hereafter formed or acquired, and not to any director or officer who is not also such a common law employee. In order for an Option grant to satisfy the "performance-based compensation"
exemption to the deduction limitation under Code Section 162(m), the maximum number of shares of Common Stock subject to Options which may be granted to any single Executive during any one
calendar year, beginning with the year grants under the Plan first become subject to such deduction limitations, is 6.67 Million (6,670,000). The terms and conditions of the Options shall be
determined from time to time by the Committee; provided, however, that the Options granted under the
Plan shall be subject to the following: 

        (a)    Exercise Price.    The Committee shall establish the exercise price at the time any Option is granted at such
amount as the Committee shall determine; provided, however, that the exercise price for each share of Common Stock purchasable under any Option which is intended to satisfy the performance-based
compensation exemption to the deduction limitation under Section 162(m) of the Code or any Incentive Stock Option granted hereunder shall be such amount as the Committee shall, in its best
judgment, determine to be not less than one hundred percent (100%) of the Fair Market Value per share of Common Stock at the date the Option is granted; and provided, further, that in the case of an
Incentive Stock Option granted to a person who, at the time such Incentive Stock Option is granted, owns shares of stock of the Corporation or of any Parent, Subsidiary or Affiliate which possess more
than ten percent (10%) of the total combined voting power of all classes of shares of stock of the Corporation or of any Parent, Subsidiary or Affiliate, the exercise price for each share of Common
Stock shall be such amount as the Committee, in its best judgment, shall determine to be not less than
one hundred ten percent (110%) of the Fair Market Value per share of Common Stock at the date the Option is granted. The exercise price will be subject to adjustment in accordance with the provisions
of Section VII of the Plan. 

        (b)    Payment of Exercise Price.    The exercise price per share of Common Stock with respect to each Option shall be
payable at the time the Option is exercised. Such price shall be payable in cash or pursuant to any of the other methods set forth in Sections V(a) or (b) hereof, as determined by the
Committee. Shares of Common Stock delivered to the Corporation in payment of the exercise price shall be valued at the Fair Market Value of the Common Stock on the date preceding the date of the
exercise of the Option. 

        (c)    Exercisability of Options.    Except as provided in Section VI(e) hereof, each Option shall be
exercisable in whole or in installments, and at such time(s), and subject to the fulfillment of any conditions on, and to any limitations on, exercisability as may be determined by the Committee at
the time of the grant of such Options. The right to purchase shares of Common Stock shall be cumulative so that when the right to purchase any shares of Common Stock has accrued such shares of Common
Stock or any part thereof may be purchased at any time thereafter until the expiration or termination of the Option. Notwithstanding the above, no Option granted under this Plan may be exercised prior
to the first to occur of (i) the consummation of an initial public offering of any class of the Corporation's equity securities or (ii) the date upon which (a) Magnetic Holdings
International (DE) LLC, (b) Magnetic Holdings International (DNE) LLC, (c) Magnetic Holdings International (FE) LLC, or (d) Magnetic Holdings International (FNE) LLC distributes
to its members the shares it owns of the Corporation's Common Stock. Furthermore, no Option granted hereunder may be exercised prior to the initial public offering of the Corporation's Common Stock
unless the Optionee desiring to exercise 

6

 

such
Option enters into a shareholders' agreement containing restrictions on the transfer of such Common Stock and other similar items in the form and substance as is acceptable to the Committee. 

        (d)    Expiration of Options.    No Incentive Stock Option by its terms shall be exercisable after the expiration of
ten (10) years from the date of grant of the Option; provided, however, in the case of an Incentive Stock Option granted to a person who, at the
time such Option is granted, owns shares of stock of the Corporation or of any Parent, Subsidiary or Affiliate possessing more than ten percent (10%) of the total combined voting power of all classes
of shares of stock of the Corporation or of any Parent, Subsidiary or Affiliate, such Option shall not be exercisable after the expiration of five (5) years from the date such Option is
granted. 

        (e)    Exercise Upon Optionee's Termination of Employment or Termination of Consulting Relationship.    If the
employment of an Optionee by the Corporation or by any Parent, Subsidiary or Affiliate is terminated for any reason, any Incentive Stock Option granted to such Optionee may not be exercised later than
three (3) months (one (1) year in the case of termination due to death or Disability) after the date of such termination of employment. An Optionee who is both an employee (or a
Consultant) and a director of the Corporation and/or any Parent, Subsidiary or Affiliate (with respect to any
Non-Qualified Option that may have been granted to him or her) shall be considered to have incurred a termination of employment (or a Termination of Consulting Relationship) only upon his
or her termination of service both as an employee (or as a Consultant) and as a director. Furthermore, (i) if an Optionee's employment (or Consulting Relationship) is terminated by the
Corporation or by any Parent, Subsidiary or Affiliate for Good Cause, (ii) if an Optionee voluntarily terminates his or her employment other than (A) for Good Reason or for Disability or
(B) with the written consent of the Committee, regardless of whether such Optionee continues to serve as a director of the Corporation or of any Parent, Subsidiary or Affiliate, or
(iii) if the Optionee's rights hereunder are terminated for Good Cause, then the Optionee shall, at the time of such termination, forfeit all of his or her rights to exercise any and all of the
outstanding Option(s) theretofore granted to him or her. 

        (f)    Maximum Amount of Incentive Stock Options.    Each Option under which Incentive Stock Options are granted shall
provide that to the extent the sum of (i) the Fair Market Value of the shares of Common Stock (determined as of the time of the grant of the Option) subject to such Incentive Stock Option plus
(ii) the fair market values (determined as of the date(s) of grant of the option(s)) of all other shares of Common Stock subject to incentive stock options granted to an Optionee by the
Corporation or any Parent, Subsidiary or Affiliate, which are exercisable for the first time by any person during any calendar year, exceed(s) One Hundred Thousand Dollars ($100,000), such excess
shares of Common Stock shall not be deemed to be purchasable pursuant to Incentive Stock Options. The terms of the immediately preceding sentence shall be applied by taking all options, whether or not
granted under the Plan, into account in the order in which they are granted. 

        (g)    Dividend Equivalents for Outstanding Options.    The Committee may, in its sole discretion, provide that
amounts equivalent to dividends shall be payable with respect to one or more shares of Common Stock subject to vested but unexercised Option(s) granted to an Optionee. Subject to the terms contained
in the appropriate Option, dividend equivalents related to an Optionee's Options(s) shall be credited to a suspense account (and remain the property of the Corporation) at such times (and in such
amounts) as are dividends payable to the then shareholders of record of the Corporation's Common Stock. Dividend equivalents shall be payable to the Optionee in cash or in Common Stock, as set forth
under the terms of the Option, if and at such time as the related Option(s) are exercised. 

        (h)    Reload Options.    (i) Concurrently with the award of an Option (for these purposes, the "Primary
Option") to an Optionee, the Committee may, in its sole discretion, authorize the award of an additional Option or Options (hereinafter referred to as "Reload Options") to such Optionee providing for
the purchase of shares of Common Stock in an amount equal to the sum of: 

        (A)  the
number of shares of Common Stock, if any, used to exercise the Primary Option; and 

7

 

        (B)  to
the extent authorized by the Committee, the number of shares of Common Stock used to satisfy any tax withholding requirement related to the exercise of the Primary
Option. 

For
purposes of this subsection (h), upon its exercise a Reload Option shall be treated as a Primary Option. 

        (ii)   The
grant of a Reload Option will become effective upon the exercise of the Primary Option. At the discretion of the Committee, a Reload Option may be an Incentive
Stock Option. 

        (iii)  To
the extent that the exercise of any Option will result in the award of a Reload Option, the Award Agreement under which such Option is granted must provide that the
exercise of such Primary Option will result in the award of a related Reload Option, which will be evidenced under a separate Award Agreement. The terms of such Award Agreement shall include, among
other items, provisions providing that (A) the exercise price per share of Common Stock available for purchase under the Reload Option shall be no less than 100% of the Fair Market Value of
such Common Stock on the date the Reload Option is granted and (B) the term of the Reload Option shall not extend beyond the remaining term of the Primary Option. 

        (iv)  Notwithstanding
the above, no Reload Option will be granted pursuant to the exercise of a Primary Option if such exercise occurs after the termination of the Optionee's
employment with the Corporation and each Parent, Subsidiary or Affiliate. 

 
 

VII
  ADJUSTMENT OF SHARES; MERGER OR
  CONSOLIDATION, ETC. OF THE CORPORATION    
    

        (a)    Recapitalization, Etc.    In the event there is any change in the outstanding Common Stock of the Corporation
by reason of any reorganization, recapitalization, stock split, stock dividend, combination of shares or otherwise, there shall be substituted for or added to each share of Common Stock theretofore
appropriated or thereafter subject, or which may become subject, to any Option, the number and kind of shares of stock or other securities into which each outstanding share of Common Stock shall be so
changed or for which each such share shall be exchanged, or to which each such share shall be entitled, as the case may be, and the per share price thereof also shall be appropriately adjusted.
Notwithstanding the foregoing, (i) each such adjustment with respect to an Incentive Stock Option shall comply with the rules of Section 424(a) of the Code and (ii) in no event
shall any adjustment be made which would render any Incentive Stock Option granted hereunder to be other than an incentive stock option for purposes of Section 422 of the Code. 

        (b)    Merger, Consolidation or Change in Control of Corporation.    Upon (i) the merger or consolidation of
the Corporation with or into another corporation (pursuant to which the stockholders of the Corporation immediately prior to such merger or consolidation will not, as of the date of such merger or
consolidation, own a beneficial interest in shares of voting securities of the corporation surviving such merger or consolidation having at least a majority of the combined voting power of such
corporation's then outstanding securities), if the agreement of merger or consolidation does not provide for (1) the continuance of the Options granted hereunder or (2) the substitution
of new options for Options granted hereunder, or for the assumption of such Options by the surviving corporation, (ii) the dissolution, liquidation, or sale of all or substantially all the
assets of the Corporation to a person unrelated to the Corporation or to a direct or indirect owner of a majority of the voting power of the Corporation's then outstanding voting securities (such sale
of assets being referred to as an "Asset Sale") or (iii) the Change in Control of the Corporation, then the holder of any such Option theretofore granted and still outstanding (and not
otherwise expired) shall have the right immediately prior to the effective date of such merger, consolidation, dissolution, liquidation, Asset Sale or Change in Control of the Corporation to exercise
such Option(s) in whole or in part without regard to any installment provision that may have been made part of the terms and conditions of such Option(s); 

8

 

provided
that all conditions precedent to the exercise of such Option(s), other than the passage of time, have occurred. The Corporation, to the extent practicable, shall give advance notice to
affected Optionees of such merger, consolidation, dissolution, liquidation, Asset Sale or Change in Control of the Corporation. Unless otherwise provided in the subject Award Agreement or merger,
consolidation or Asset Sale agreement, all such Options which are not so exercised shall be forfeited as of the effective time of such merger, consolidation, dissolution, liquidation or Asset Sale
(but not in the case of a Change in Control of the Corporation). In the event the Corporation becomes a subsidiary of another corporation (the "New Parent Corporation") with respect to which the
stockholders of the Corporation (as determined immediately before such transaction) own, immediately after such transaction, a beneficial interest in shares of voting securities of the New Parent
Corporation having at least a majority of the combined voting power of such New Parent Corporation's then outstanding securities, there shall be substituted for Options granted hereunder, options to
purchase common stock of the New Parent Corporation. The substitution described in the immediately preceding sentence shall be effected in a manner such that any option granted by the New Parent
Corporation to replace an Incentive Stock Option granted hereunder shall satisfy the requirements of Section 422 of the Code. 

        (c)    Definition of Change in Control of the Corporation.    As used herein, a "Change in Control of the Corporation"
shall be deemed to have occurred if any person (including any individual, firm, partnership or other entity) together with all Affiliates and Associates (as defined under Rule 12b-2
of the General Rules and Regulations promulgated under the Exchange Act) of such person (but excluding (i) a trustee or other fiduciary holding securities under an employee benefit plan of the
Corporation or any subsidiary of the Corporation, (ii) a corporation owned, directly or indirectly, by the stockholders of the Corporation in substantially the same proportions as their
ownership of the Corporation, (iii) the Corporation or any subsidiary of the Corporation or (iv) only as provided in the immediately following sentence, an Optionee together with all
Affiliates and Associates of the Optionee) who is not a stockholder or an Affiliate or Associate of a stockholder of the Corporation on the date of stockholder approval of the Plan is or becomes the
Beneficial Owner (as defined in Rule 13d-3 promulgated under the Exchange Act), directly or indirectly, of securities of the Corporation representing Forty Percent (40%) or more of
the combined voting power of the Corporation's then outstanding securities. The provisions of clause (iv) of the immediately
preceding sentence shall apply only with respect to the Option(s) held by the Optionee who, together with his or her Affiliates or Associates, if any, is or becomes the direct or indirect Beneficial
Owner of the percentage of securities set forth in such clause. Notwithstanding the above, any Change in Control of the Corporation will not include any acquisition of any securities of the
Corporation pursuant to a private placement of the Corporation's equity securities prior to the date, if any, on which any class of the Corporation's equity securities become readily tradable on a
recognized national securities exchange. 

9

  

 
 

VIII
  MISCELLANEOUS PROVISIONS    
    

        (a)    Administrative Procedures.    The Committee may establish any procedures determined by it to be appropriate in
discharging its responsibilities under the Plan. All actions and decisions of the Committee shall be final. 

        (b)    Assignment or Transfer.    No grant or award of any Option (other than a Non-Qualified Option) or
any rights or interests therein shall be assignable or transferable by an Optionee except by will or the laws of descent and distribution or pursuant to a domestic relations order. During the lifetime
of an Optionee, Incentive Stock Options granted hereunder shall be exercisable only by the Optionee. 

        (c)    Investment Representation.    With respect to shares of Common Stock received pursuant to the exercise of an
Option, the Committee may require, as a condition of receiving such securities, that the Optionee furnish to the Corporation such written representations and information as the Committee deems
appropriate to permit the Corporation, in light of the existence or nonexistence of an effective registration statement under the Securities Act, to deliver such securities in compliance with the
provisions of the Securities Act. 

        (d)    Withholding Taxes.    In the case of the issuance or distribution of Common Stock or other securities hereunder
upon the exercise of any Option, the Corporation, as a condition of such issuance or distribution, may require the payment (through withholding from the Optionee's salary, reduction of the number of
shares of Common Stock or other securities to be issued, or otherwise) of any federal, state, local or foreign taxes required to be withheld. Each Optionee may satisfy the withholding obligations by
paying to the Corporation (or the appropriate Parent, Subsidiary or Affiliate) a cash amount equal to the amount required to be withheld or, subject to the Committee's consent thereto, by tendering to
the Corporation (or to the appropriate Parent, Subsidiary or Affiliate) a number of shares of Common Stock having a value equivalent to such cash amount, or by use of any available procedure approved
by the Committee as described under Section V(c) hereof. 

        (e)    Costs and Expenses.    The costs and expenses of administering the Plan shall be borne by the Corporation and
shall not be charged against any award nor to any individual receiving an Option. 

        (f)    Funding of Plan.    The Plan shall be unfunded. The Corporation shall not be required to segregate any of its
assets to assure the payment of any Option under the Plan. Neither the Optionees nor any other persons shall have any interest in any fund or in any specific asset or assets of the Corporation or any
other entity by reason of any Option, except to the extent expressly provided hereunder. 

        (g)    Other Incentive Plans.    The adoption of the Plan does not preclude the adoption by appropriate means of any
other incentive plan for employees. 

        (h)    Plurals and Gender.    Where appearing in the Plan, the masculine gender shall include the feminine and neuter
genders, and the singular shall include the plural, and vice versa, unless the context clearly indicates a different meaning. 

        (i)    Headings.    The headings and sub-headings in the Plan are inserted for the convenience of
reference only and are to be ignored in any construction of the provisions hereof. 

        (j)    Severability.    In case any provision of the Plan shall be held illegal or void, such illegality or invalidity
shall not affect the remaining provisions of the Plan, but shall be fully severable, and the Plan shall be construed and enforced as if said illegal or invalid provisions had never been inserted
herein. 

        (k)    Liability and Indemnification.    (i) Neither the Corporation nor any Parent, Subsidiary or Affiliate
shall be responsible in any way for any action or omission of the Committee, or any other 

10

 

fiduciaries
in the performance of their duties and obligations as set forth in the Plan. Furthermore, neither the Corporation nor any Parent, Subsidiary or Affiliate shall be responsible for any act
or omission of any of their agents, or with respect to reliance upon advice of their counsel, provided that the Corporation and/or the appropriate Parent, Subsidiary or Affiliate relied in good faith
upon the action of such agent or the advice of such counsel. 

	(ii)
	Neither
the Corporation, any Parent, Subsidiary or Affiliate, the Committee, nor any agents, employees, officers, directors or shareholders of any of them, nor any
other person shall have any liability or responsibility with respect to the Plan, except as expressly provided herein. 

        (l)    Incapacity.    If the Committee shall receive evidence satisfactory to it that a person entitled to exercise
any Option is, at the time when such Option becomes exercisable, a minor, or is physically or mentally incompetent to receive such Option and to give a valid release thereof, and that another person
or an institution is then maintaining or has custody of such person and that no guardian, committee or other representative of the estate of such person shall have been duly appointed, the Committee
may permit such Option to be exercised by such other person or institution, including a custodian under a Uniform Gifts to Minors Act or corresponding legislation (who shall be an adult, a guardian of
the minor or a trust company), and the release by such other person or institution shall be a valid and complete discharge for the exercise of such Option. 

        (m)    Cooperation of Parties.    All parties to the Plan and any person claiming any interest hereunder agree to
perform any and all acts and execute any and all documents and papers which are necessary or desirable for carrying out the Plan or any of its provisions. 

        (n)    Governing Law; Venue.    All questions pertaining to the validity, construction and administration of the Plan
shall be determined in accordance with the laws of the State of New York, without regard to its principles of conflicts of law. Furthermore, in the event any action is brought by any individual with
respect to a claim or claims under this Plan, the venue for such action shall be the courts of the State of New York located within the County of New York; provided, however if the federal courts have
subject matter jurisdiction, any action shall be commenced and maintained in the federal court located in the Southern District of the State of New York. In any such action or proceeding, each party
hereto waives personal service of any summons, complaint or other process and agrees that service thereof may be made in accordance with subsection (p) of this Article VIII. Within
30 days after such service, or such other time as may be mutually agreed upon in writing by the attorneys for the parties to such action or proceeding, the party so served shall appear or
answer such summons, complaint or other process. Should the party so served fail to appear or answer within such 30-day period or such extended period, as the case may be, such party shall
be deemed in default and judgment may be entered against such party for the amount as demanded in any summons, complaint or other process so served. 

        (o)    Nonguarantee of Employment or Consulting Relationship.    Nothing contained in the Plan shall be construed as a
contract of employment (or as a consulting contract) between the Corporation (or any Parent, Subsidiary or Affiliate), and any employee or Optionee, as a right of any employee or Optionee to be
continued in the employment of (or in a Consulting Relationship with) the Corporation (or any Parent, Subsidiary or Affiliate), or as a limitation on the right of the Corporation or any Parent,
Subsidiary or Affiliate to discharge any of its employees (or Consultants), at any time, with or without cause (but subject to the terms of any applicable employment or consulting agreement). 

        (p)    Notices.    Each notice relating to the Plan shall be in writing and delivered in person, by recognized
overnight courier or by certified mail to the proper address. Except as otherwise provided in any Award Agreement with respect to the exercise thereunder, all notices to the Corporation or the
Committee shall be addressed to it at 100 Wall Street, New York, New York 10005, Attn: General Counsel. All notices to Optionees, beneficiaries or other persons acting for or on behalf of such 

11

 

persons
shall be addressed to such person at the last address for such person maintained in the Committee's records. 

        (q)    Written Agreements.    Each Option shall be evidenced by a signed written agreement between the Corporation and
the Optionee containing the terms and conditions of the award. 

 
 

IX
  AMENDMENT OR TERMINATION OF PLAN    
    

        The Board of Directors of the Corporation shall have the right to amend, suspend or terminate the Plan at any time, provided that no amendment shall be made which
shall increase the total number of shares of the Common Stock of the Corporation which may be issued and sold pursuant to Incentive Stock Options, reduce the minimum exercise price in the case of an
Incentive Stock Option or modify the provisions of the Plan relating to eligibility with respect to Incentive Stock Options unless such amendment is made by or with the approval of the stockholders of
the Corporation within 12 months of the effective date of such amendment, but only if such approval is required by any applicable provision of law. Furthermore, no amendment to the Plan may
change (i) the maximum amount of Options that may be granted on an annual basis or (ii) the exercise price of any options granted hereunder without the prior approval of the
Corporation's stockholders in the manner required under Section 162(m) of the Code; provided, however, that such stockholder consent is required only during such period that the deduction
limitations under Code Section 162(m) apply to Options granted under the Plan. The Board of Directors of the Corporation shall also be authorized to amend the Plan and the Options granted
thereunder to maintain qualification as "incentive stock options" within the meaning of Section 422 of the Code, if applicable. Except as otherwise provided herein, no amendment, suspension or
termination of the Plan shall alter or impair any Option previously granted under the Plan without the consent of the holder thereof. 

 
 

X
  TERM OF PLAN    
    

        The Plan shall automatically terminate on the day immediately preceding the tenth (10th) anniversary of the date the Plan was adopted by the Board
of Directors of the Corporation, unless sooner terminated
by such Board of Directors. No Options may be granted under the Plan subsequent to the termination of the Plan. 

12

OPTION NO. 01-NQO-[            ] 

GFInet inc.  

 2000 Stock Option Plan  

NON-QUALIFIED STOCK OPTION  

 Granted To

[                        ]

	    	 	 
	    	 	 
	Number of Shares: [            ]	 	Price per Share: $[                        ]
	

Date Granted: [                        ], 2001	
 	

Expiration Date: [                        ], 2011

 
 
 

NON-QUALIFIED STOCK OPTION AGREEMENT    
    

        AGREEMENT made as of this [    ] day of [    ], 2001 (the "Date of Grant") between
GFInet inc., a Delaware corporation (hereinafter referred to as the "Company"), and [    ], residing
at                        (hereinafter referred to as the
"Employee"). 

W I T N E S S E T H:

        WHEREAS, the Company desires, in connection with the employment of the Employee and in accordance with its 2000 Stock Option Plan (the
"Plan"), to provide the Employee with an opportunity to acquire Common Stock, par value $0.01 per share (hereinafter referred to as "Common Stock"), of the Company on favorable terms and thereby
increase his or her proprietary interest in the continued progress and success of the business of the Company; 

        NOW,
THEREFORE, in consideration of the premises, the mutual covenants herein set forth and other good and valuable consideration, the Company and the Employee hereby agree as follows: 

        1.    Confirmation of Grant of Option.    Pursuant to a determination by the Committee, the Company, subject to the
terms of the Plan and this Agreement, hereby grants to the Employee as a matter of separate inducement and agreement, and in addition to and not in lieu of salary or other compensation for services,
the right to purchase (hereinafter referred to as the "Option") an aggregate of [            ] shares of Common Stock, subject to adjustment as provided in the Plan (such
shares, as adjusted, hereinafter being referred to as the "Shares"). The Option is not intended to qualify as an incentive stock option under
Section 422 of the Internal Revenue Code of 1986, as amended (the "Code"). 

        2.    Purchase Price.    The purchase price of shares of Common Stock covered by the Option will be the amount per
share set forth in column 1 of Schedule A hereto. 

        3.    Exercise of Option.    The Option shall be exercisable on the terms and conditions hereinafter set forth: 

        (a)   The
Option shall vest and become exercisable cumulatively as to the amounts of the number of Shares originally subject thereto (after giving effect to any adjustment
pursuant to the Plan), on the dates indicated in column 3 of Schedule A hereto. 

        (b)   The
Option may be exercised pursuant to the provisions of this Section 3, by notice and payment to the Company as provided in Sections 9 and 14 hereof. 

        4.    Term of Option.    The term of the Option shall be the period of years from the Date of Grant specified in
column 4 of Schedule A hereto, subject to earlier termination or cancellation as provided in this Agreement. This Option, to the extent unexercised, shall expire on the day immediately prior to
the date specified in Column 5 of Schedule A hereto. The holder of the Option shall not have any rights to dividends or any other rights of a stockholder with respect to any shares of Common
Stock subject to the Option until such shares shall have been issued to him or her (as evidenced by the appropriate entry on the books of the Company or a duly authorized transfer agent of the
Company) provided that the date of issuance shall not be earlier than the date this Option is exercised and payment of the full purchase price of the shares of Common Stock (with respect to which this
Option is exercised) is made to the Company. 

        5.    Non-transferability of Option.    The Option shall not be assigned, transferred or otherwise
disposed of, or pledged or hypothecated in any way, and shall not be subject to execution, attachment or other process, except as may be provided in the Plan. Any assignment, transfer, pledge,
hypothecation or other disposition of the Option attempted contrary to the provisions of the Plan, or any levy of execution, attachment or other process attempted upon the Option, will be null and
void and without effect. Any attempt to make any such assignment, transfer, pledge, hypothecation or other 

2

 

disposition
of the Option will cause the Option to terminate immediately upon the happening of any such event; provided, however, that any such termination of the Option under the foregoing provisions
of this Section 5 will not prejudice any rights or remedies which the Company or any Parent or Subsidiary may have under this Agreement or otherwise. 

        6.    Exercise Upon Cessation of Employment.    (a) If the Employee at any time ceases to be an Employee of the
Company and of any Parent or Subsidiary (i) by reason of his or her discharge for Good Cause, (ii) by reason of his or her violation of any provision of Section 21 of this
Agreement, or (iii) due to his or her voluntary termination of employment without the written consent of the Committee, the Option shall terminate immediately and the Employee shall forfeit all
rights hereunder. If the Employee at any
time violates any provision of Section 21 of this Agreement and does not cease to be an Employee of the Company as a result of such violation, the Option shall terminate immediately upon such
violation and the Employee shall forfeit all rights hereunder; provided, however, that the Company shall have the right, in its sole discretion, to elect not to terminate the Option in whole or in
part. If, however, the Employee for any other reason (other than Disability or death) ceases to be an Employee of the Company and of any Parent or Subsidiary, the Option shall, subject to the
provisions of Section 5 hereof, be exercisable by the Employee at any time within the period specified in column 6 of Schedule A hereto after such cessation of employment, at the end of
which period the Option, to the extent not then exercised, shall terminate and the Employee shall forfeit all rights hereunder, even if the Employee subsequently returns to the employ of the Company
or any Parent or Subsidiary. For purposes of the immediately preceding sentence, the Employee's vested interest in the Option (as set forth in column 3 of Schedule A hereof) shall be determined
as if he or she remained in the employ of the Company during the post-employment period described in the immediately preceding sentence. In no event, however, may the Option be exercised
after the expiration of the term provided in column 4 of Schedule A hereof. 

        (b)   The
Option shall not be affected by any change of duties or position of the Employee so long as the Employee continues to be an a full-time Employee of the
Company or of any Parent or Subsidiary thereof. If the Employee is granted a temporary leave of absence, such leave of absence shall be deemed a continuation of his or her employment by the Company or
of any Parent or Subsidiary thereof for the purposes of this Agreement, but only if and so long as the employing corporation consents thereto. 

        7.    Exercise Upon Death or Disability.    (a) If the Employee dies while he is employed by the Company or by
any Parent or Subsidiary, and on or after the first date upon which he would have been entitled to exercise the Option under the provisions of Section 3 hereof, the Option may, subject to the
provisions of Section 5 hereof, be exercised (to the same extent the Employee would have been entitled under Section 3 hereof to exercise the Option immediately prior to his or her
death), by the estate of the Employee (or by the person or persons who acquire the right to exercise the Option by written designation of the Employee) at any time within the period specified in
column 7 of Schedule A hereto after the date of such termination of employment. For purposes of the immediately preceding sentence, the Employee's vested interest in the Option (as set forth in
Section 3(a) hereof) shall be determined as if he or she remained in the employ of the Company during the post-employment period described in the immediately preceding sentence. 

        (b)   In
the event that the employment of the Employee by the Company and any Parent or Subsidiary is terminated by reason of the Disability of the Employee and on or after
the first date upon which he would have been entitled to exercise the Option under the provisions of Section 3 hereof, the Option may, subject to the provisions of Section 5 hereof, be
exercised by the Employee within the period specified in column 7 of schedule A hereto after the date of such termination of employment, at the end of which period the Option, to the extent not
then exercised, shall terminate and the Employee shall forfeit all rights hereunder even if the Employee subsequently returns to the employ of the Company or any Parent or Subsidiary. For purposes of 

3

 

the
immediately preceding sentence, the Employee's vested interest in the Option (as set forth in Section 3(a) hereof) shall be determined as if he or she remained in the employ of the Company
during the post-employment period described in the immediately preceding sentence. In no event, however, may the Option be exercised after the expiration of the term provided in
Section 4 hereof. 

        8.    Registration.    At the time of issuance, the shares of Common Stock subject hereto and issuable upon the
exercise hereof may not be registered under the Securities Act of 1933, as amended, and, if required upon the request of counsel to the Company, the Employee will give a representation as to his or
her investment intent with respect to such shares prior to their issuance as set forth in Section 9 hereof. The Company may register or qualify the shares covered by the Option for sale
pursuant to the Securities Act of 1933, as amended, at any time prior to or after the exercise in whole or in part of the Option. 

        9.    Method of Exercise of Option.    (a) Subject to the terms and conditions of this Agreement, the Option
shall be exercisable by notice in the manner set forth in Exhibit A hereto (the "Notice") and provision for payment to the Company in accordance with the procedure prescribed herein. Each such
Notice shall: 

          (i)  state
the election to exercise the Option and the number of Shares with respect to which it is being exercised; 

         (ii)  contain
a representation and agreement as to investment intent, if required by counsel to the Company with respect to such Shares, in a form satisfactory to counsel to
the Company; 

        (iii)  be
signed by the Employee or the person or persons entitled to exercise the Option and, if the Option is being exercised by any person or persons other than the
Employee, be accompanied by proof, satisfactory to counsel to the Company, of the right of such other person or persons to exercise the Option; 

        (iv)  include
payment of the full purchase price for the shares of Common Stock to be purchased pursuant to such exercise of the Option; and 

         (v)  be
received by the Company on or before the date of the expiration of this Option. In the event the date of expiration of this Option falls on a day which is not a
regular business day at the Company's executive office in New York, New York, then such written Notice must be received at such office on or before the last regular business day prior to such date of
expiration. 

        (b)   Payment
of the purchase price of any shares of Common Stock, in respect of which the Option shall be exercised, shall be made by the Employee or such person or persons
at the place specified by the Company on the date the Notice is received by the Company (i) by delivering to the Company a certified or bank cashier's check payable to the order of the Company
or (ii) if consented to by the Company in writing, (A) by delivering to the Company properly endorsed certificates of shares of Common Stock (or certificates accompanied by an
appropriate stock power) with signature guaranties by a bank or trust company, (B) by having withheld from the total number of shares of Common Stock to be acquired upon the exercise of this
Option a specified number of such shares of Common Stock, (C) by any form of "cashless" exercise or (D) by any combination of the foregoing. For purposes of the immediately preceding
sentence, an exercise effected by the tender of Common Stock (or deemed to be effected by the tender of Common Stock) may only be consummated with Common Stock held by the Employee for a period of six
(6) months or acquired by the Employee other than under the Plan (or a similar plan maintained by the Company). 

4

 

        (c)   The
Option shall be deemed to have been exercised with respect to any particular shares of Common Stock if, and only if, the preceding provisions of this
Section 9 and the provisions of Section 10 hereof shall have been complied with, in which event the Option shall be deemed to have been exercised on the date the Notice and related
payment were received by the Company. Anything in this Agreement to the contrary notwithstanding, any Notice given pursuant to me provisions of this Section 9 shall be void and of no effect if
all of the preceding provisions of this Section 9 and the provisions of Section 10 shall not have been complied with. 

        (d)   The
certificate or certificates for shares of Common Stock as to which the Option shall be exercised will be registered in the name of the Employee (or in the name of
the Employee's estate or other beneficiary if the Option is exercised after the Employee's death), or if the Option is exercised by the Employee and if the Employee so requests in the notice
exercising the Option, will be registered in the name of the Employee and another person jointly, with right of survivorship and will be delivered as soon as practical after the date the Notice is
received by the Company (accompanied by full payment of the exercise price), but only upon compliance with all of the provisions of this Agreement. 

        (e)   If
the Employee fails to accept delivery of and pay for all or any part of the number of Shares specified in such Notice, his or her right to exercise the Option with
respect to such undelivered Shares may be terminated in the sole discretion of the Committee. The Option may be exercised only with respect to full Shares. 

        (f)    The
Company shall not be required to issue or deliver any certificate or certificates for shares of its Common Stock purchased upon the exercise of any part of the
Option prior to the payment to the Company, upon its demand, of any amount requested by the Company for the purpose of satisfying its liability, if any, to withhold federal, state or local income or
earnings tax or any other applicable tax or assessment (plus interest or penalties thereon, if any, caused by a delay in making such payment) incurred by reason of the exercise of this Option or the
transfer of shares thereupon. Such payment shall be made by the Employee in cash or, with the written consent of the Company, by tendering to the Company shares of Common Stock equal in value to the
amount of the required withholding. In the alternative, the Company may, at its option, satisfy such withholding requirements by withholding from the shares of Common Stock to be delivered to the
Employee pursuant to an exercise of the Option a number of shares of Common Stock equal in value to the amount of the required withholding. 

        10.    Approval of Counsel.    The exercise of the Option and the issuance and delivery of shares of Common Stock
pursuant thereto shall be subject to approval by the Company's counsel of all legal matters in connection therewith, including, but not limited to, compliance with the requirements of the Securities
Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder, and the requirements of any stock exchange or automated trading medium upon
which the Common Stock may then be listed or traded. 

        11.    Resale of Common Stock.    (a) If so requested by the Company, upon any sale or transfer of the Common
Stock purchased upon exercise of the Option (subject to the provisions of Sections 11(b) hereof), the Employee shall deliver to the Company an opinion of counsel satisfactory to the Company to the
effect that either (i) the Common Stock to be sold or transferred has been registered under the Securities Act and that there is in effect a current prospectus meeting the requirements of
Section 10(a) of said Act which is being or will be delivered to the purchaser or transferee at or prior to the time of delivery of the certificates evidencing the Common Stock to be sold or
transferred, or (ii) such Common Stock may then be sold without violating Section 5 of said Act. 

        (b)   The
Employee agrees that, if so requested by the Company or any representative of the underwriters (the "Managing Underwriter") in connection with any registration of
the offering of any securities of the Company under the Securities Act, the Employee will not sell or otherwise 

5

 

transfer
any Shares or other securities of the Company during the one (1) year period (or such shorter period as may be requested in writing by the Managing Underwriter with respect to Shares
owned by the Company's senior management) (the "Market Standoff Period") following the effective date of a registration statement of the Company filed under the Securities Act. Such restriction shall
apply only to the first registration statement of the Company to become effective under the Securities Act that includes securities to be sold on behalf of the Company to the public in an underwritten
public offering under the Securities Act. The Company may impose stop-transfer instructions with respect to securities subject to the foregoing restrictions until the end of such Market
Standoff Period. 

        (c)   The
Common Stock issued upon exercise of the Option shall bear the following (or similar) legend, and one or more other restrictive legends, if required by counsel for
the Company: 

THE
SHARES EVIDENCED BY THIS CERTIFICATE MAY NOT BE SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF UNLESS THEY HAVE FIRST BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR UNLESS, IN THE OPINION OF COUNSEL FOR THE COMPANY, SUCH REGISTRATION IS NOT REQUIRED. 

        12.    Reservation of Shares.    The Company shall at all times during the term of the Option reserve and keep
available such number of shares of Common Stock as will be sufficient to satisfy the requirements of this Agreement. 

        13.    Limitation of Action.    The Employee and the Company each acknowledges that every right of action accruing to
him or her or it, as the case may be, and arising out of or in connection with this Agreement against the Company or a Parent or Subsidiary, on the one hand, or against the Employee, on the other
hand, shall, irrespective of the place where an action may be brought, cease and be barred by the expiration of three years from the date of the act or omission in respect of which such right of
action arises. 

        14.    Notices.    Each notice relating to this Agreement shall be in writing and delivered in person, by recognized
overnight courier or by certified mail to the proper address. All notices to the Company or the Committee shall be addressed to them at 100 Wall Street, New York, New York 10005, Attn: General
Counsel. All notices to the Employee shall be addressed to the Employee or such other person or persons at the Employee's address above specified. Anyone to whom a notice may be given under this
Agreement may designate a new address by notice to that effect. 

        15.    Benefits of Agreement.    This Agreement shall inure to the benefit of the Company, the Employee and their
respective heirs, executors, administrators, personal representatives, successors and permitted assignees. 

        16.    Severability.    In the event that any one or more provisions of this Agreement shall be deemed to be illegal
or unenforceable, such illegality or unenforceability shall not affect the validity and enforceability of the remaining legal and enforceable provisions hereof, which shall be construed as if such
illegal or unenforceable provision or provisions had not been inserted. 

        17.    Governing Law, Choice of Law Jurisdiction; Venue.    This Agreement has been negotiated and shall be
consummated in the State of New York and shall be governed by and construed in accordance with the laws of the State of New York, without regard to its principles of conflicts of law. The parties
hereto irrevocably consent to the jurisdiction of the courts of the State of New York located within the County of New York and of any federal court located in the Southern District of the State of
New York in connection with any action or proceeding arising out of or relating to this Agreement, any document or instrument delivered pursuant to, in connection with or simultaneously with this
Agreement, or a breach of this Agreement or any such document or instrument; provided, however if the
federal courts have subject matter jurisdiction, any action shall be commenced and maintained 

6

 

there.
In any such action or proceeding, each party hereto waives personal service of any summons, complaint or other process and agrees that service thereof may be made in accordance with
Section 14. Within 30 days after such service, or such other time as may be mutually agreed upon in writing by the attorneys for the parties to such action or proceeding, the party so
served shall appear or answer such summons, complaint or other process. Should the party so served fail to appear or answer within such 30-day period or such extended period, as the case
may be, such party shall be deemed in default and judgment may be entered against such party for the amount as demanded in any summons, complaint or other process so served. 

        18.    Employment.    Nothing contained in this Agreement shall be construed as (a) a contract of employment
between the Employee and the Company or any Parent or Subsidiary, (b) as a right of the Employee to be continued in the employ of the Company or of any Parent or Subsidiary, or (c) as a
limitation of the right of the Company or of any Parent or Subsidiary to discharge the Employee at any time, with or without cause (subject to any applicable employment agreement). 

        19.    Definitions.    Unless otherwise defined herein, all capitalized terms used in this Agreement shall have the
same definitions as set forth in the Plan. 

        20.    Incorporation of Terms of Plan.    This Agreement shall be interpreted under, and subject to, all of the terms
and provisions of the Plan, which are incorporated herein by reference. 

        21.    Special Rules Regarding Non-Competition, Proprietary Information, Etc.    For purposes of the this
Agreement the following rules apply: 

        (a)    Nondisclosure of Confidential and Proprietary Information    

          (i)  Employee
acknowledges that during the term of this Agreement, Employee will have access to and possession of trade secret, confidential information and proprietary
information (collectively, and as defined more extensively below, "Confidential Information") of the Company, and in some instances, its affiliates and subsidiaries ("Related Entities") and their
respective clients. Employee recognizes and acknowledges that this Confidential Information is valuable, special and unique to the business of the Company and each Related Entity, and that access to
and knowledge thereof are essential to the performance of Employee's duties to the Company and to each Related Entity, if applicable. During the Relationship, Employee will keep secret and will not
use or disclose any Confidential Information to any person or entity, in any fashion or for any purpose whatsoever, except at the request of the Company. 

        The
term "Confidential Information", includes, but is not limited to, information written, in digital form, in graphic form, electronically stored, orally transmitted or memorized
concerning or relating to GFInet inc. or any of its Related Entities, including FENICS Ltd., FENICS Software Inc. or FENICS Software Ltd, or GFInet Analytics, including all
customer pricing information, telephone numbers, addresses of and personal information about traders and other dealer representatives, profit and loss statements, productivity data, financial models,
computer software programs, source and other codes, information about direct communication lines, electronic and voice trading systems, screen systems and wiring instructions, all information about
the Company's business prospects and opportunities, and all other information about or gained from any customer to the Company providing services during Employee's employment with the Company. This
clause shall not apply to any confidential information which enters the public domain other than through Employee's default. 

         (ii)  Pursuant
to applicable Company policy or as Employee may otherwise be directed by Employee's supervisor, Employee shall maintain proper files and records relating to
work performed by Employee pursuant to this Agreement. All such confidential files, records are the exclusive property of the Company and shall be delivered to the Company within five 

7

 

(5) business
days following the termination of Employee's employment with the Company. Employee further agrees to store and maintain all Confidential Information in a secure place pursuant to
the standard policies and procedures of the Company as in effect from time to time. 

        (b)    Assignment of Inventions and Intellectual Property    

          (i)  The
term "Proprietary Rights" means all trade secret, trademark, service mark, patent, copyright, mask work and other intellectual property rights throughout the world.
The term "Inventions" means all Proprietary Rights, inventions, ideas, processes, formulas, source and object codes, data, programs, technology, writings, software programs, other works of authorship,
know-how, discoveries, developments, designs, schematics, manuals, drawings, techniques, development tools or computer printouts (or any related improvements or modifications to the
foregoing). 

         (ii)  Employee
hereby assigns and agrees to assign in the future (when any such Inventions or Proprietary Rights are first reduced to practice or first fixed in a tangible
medium, as applicable) to the Company all right, title and interest in and to any and all Inventions (and all Proprietary Rights with respect thereto) whether or not they are able to be patented or
registered under copyright or similar statutes, made or conceived or reduced to practice or learned by Employee, either alone or jointly with others, during or at any time after the period of
employment with the Company, which (a) relate to methods, apparatus, designs, products, processes or devices sold, leased, used or under construction or development by the Company or its
affiliates, or otherwise relate to or pertain to the business, functions, operations, research or development of the Company, (b) arise (wholly or partly) from Employee's efforts during any
time that Employee is employed by the Company or utilizing any physical or intellectual property owned or leased by the Company or its affiliates, or (c) is based on any information or
knowledge gained by Employee within the scope of Employee's employment with the Company. 

        (iii)  During
Employee's period of employment and for twelve months (12) months thereafter (the "Period of Restriction"), Employee will promptly disclose to the
Company, fully and in writing, all Inventions required to be assigned to the Company under Section 21(b)(ii) above which were authored, conceived or reduced to practice by Employee, all
patent applications filed by Employee or on Employee's behalf either alone or jointly with others. 

        (iv)  Employee
acknowledges that all original works of authorship which are made by Employee (solely or jointly with others) within the scope of employment and which may be
protected by copyright are "works made for hire," pursuant to United States Copyright Act (17 U.S.C. Section 101) and are the property of the Company, without limitation which shall own all
rights of copyright therein including the sole and exclusive right to reproduce such works in multiple copies of distribution or sale to the public and to create and exploit derivative works based
thereon. 

        (c)    No Inducement or Employment of Other Employees    

        During
the Period of Restriction, Employee will not induce, employ, solicit the employment of, attempt to affiliate for profit with, or otherwise encourage, directly or indirectly, any
Employee of, or any independent contractor performing services for, the Company, or any Related Entities, to leave the employ of, or to cease rendering services to the Company or any Related Entities,
for the benefit of Employee, or any other party, or to assist any enterprise to employ any person employed by or any independent contractor performing services to the Company or any Related Entities. 

8

 

        (d)    Non-Solicitation, Non-Competition    

          (i)  Employee
agrees to refrain, directly or indirectly, during the Period of Restriction, from accepting business from, doing business with, inducing or soliciting any
customers or vendors of the Company, to or on behalf of whom Employee rendered any services during the course of Employee's employment under this Agreement, to do business with Employee in competition
with the type of services performed by Employee for the Company or for any other person or entity competing with the Company, except as authorized in writing by the Company; and 

         (ii)  During
the Period of Restriction, Employee will not directly or indirectly as an individual proprietor, partner, stockholder, officer, employee, director, joint
venturer, investor, lender, consultant, or in any other capacity whatsoever (other than as the direct or indirect passive holder of not more than one percent (1%) of the combined voting power of the
outstanding stock of a publicly held company), develop, design, produce, market, sell or render (or assist any other person in developing, designing, producing, marketing, selling or rendering)
products or services competitive with those developed, designed, produced, marketed, sold or rendered by the Company while the Employee was employed by the Company. 

        (e)   For
purposes of this Section 21, the term "Company" shall mean the Company and any and all subsidiaries, parents and affiliated corporations of the Company as may
be in existence from time to time. 10 

9

 

        IN
WITNESS WHEREOF, the parties have executed this Agreement as of the Date of Grant set forth above. 

	 	 	GFInet inc.
	

 	
 	

By:	
 	

 
	 	 	 	 	
Stephen J. McMillan

Chief Operating Officer
	

 	
 	

[                  ]
	

ATTEST:	
 	

 	
 	

 
	

 	
 	

 Social Security Number

10

EXHIBIT A  

 
 

NON-QUALIFIED OPTION EXERCISE FORM    
    

[DATE]                   

GFInet inc.

100 Wall Street

New York, New York 10005

Attention: General Counsel 

Dear
Sir: 

        Pursuant
to the provisions of the Non-Qualified Stock Option Agreement dated the            day of            , 2001 (the "Agreement"),
whereby you have granted to
me a Non-Qualified Option (the "Option") to purchase up to            shares of the Common Stock of GFInet inc. (the "Company") subject to the terms of the Agreement, I hereby
notify you that I elect to exercise my option to purchase                        of the shares of Common Stock covered by such
Option at the $            per share price specified therein. In full
payment of the price for the shares being purchased hereby, I am delivering to you herewith (i) certified or bank cashier's check payable to the order of the Company in the amount of
$            , or (ii) a certificate or certificates
for                        shares of Common Stock of the Company, and which have a fair market value as of the date hereof of
$                        ,
[and a certified or bank cashier's check, payable to the order of the Company, in the amount of $                        ]. Any
such stock certificate or certificates are endorsed, or
accompanied by an appropriate stock power, to the order of the Company, with my signature guaranteed by a bank or trust company or by a member firm of the New York Stock Exchange. I hereby acknowledge
that I am purchasing these shares for investment purposes only and not for resale in violation of any federal or state securities laws. 

	 	 	Very truly yours,
	

 	
 	

 [Address]

(For notices, reports, dividend checks and

other communications to stockholders.)

 
 

SCHEDULE A    
    

[Name]

Number of Shares: [            ] 

	1
	 	2
	 	3
	 	4
	 	5
	 	6
	 	7

	$[            ]	 	N/A	 	[            ] options vest on [            ], 2002, and
[            ] options vest on [            ], 2003	 	Ten years	 	[            ], 2011	 	Three months	 	One year

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GFINET INC. 2000 STOCK OPTION PLAN INTRODUCTION

I DEFINITIONS

II ADMINISTRATION

III SHARES AVAILABLE

IV ELIGIBILITY

V AUTHORITY OF COMMITTEE

VI STOCK OPTIONS

VII ADJUSTMENT OF SHARES; MERGER OR CONSOLIDATION, ETC. OF THE CORPORATION

VIII MISCELLANEOUS PROVISIONS

IX AMENDMENT OR TERMINATION OF PLAN

X TERM OF PLAN

NON-QUALIFIED STOCK OPTION AGREEMENT

NON-QUALIFIED OPTION EXERCISE FORM

SCHEDULE A

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