Document:

Exhibit 10.1

 

 

$300,000,000

 

CREDIT AGREEMENT

 

among

 

INTERACTIVE BROKERS GROUP LLC,

as Borrower,

 

The Several Lenders from Time to Time Parties Hereto,

 

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent,

 

HARRIS N.A.,

as Syndication Agent,

 

and

 

CITIBANK, N.A. and HSBC BANK USA, NATIONAL
ASSOCIATION,

as Co-Syndication Agents

 

Dated as of May 19, 2006

 

 

J.P. MORGAN SECURITIES INC.

 

and

 

HARRIS NESBITT CORP.,

 

as Joint Lead Arrangers and Bookrunners

 

 

 

TABLE OF CONTENTS

 

	
   

  	
  Page

  
	
  SECTION 1.

  	
  DEFINITIONS

  	
  1

  
	
   

  	
   

  
	
  1.1

  	
  Defined Terms

  	
  1

  
	
  1.2

  	
  Other Definitional Provisions

  	
  15

  
	
   

  	
   

  
	
  SECTION 2.

  	
  AMOUNT AND TERMS OF COMMITMENTS

  	
  16

  
	
   

  	
   

  
	
  2.1

  	
  Revolving Commitments

  	
  16

  
	
  2.2

  	
  Procedure for Revolving Loan Borrowing

  	
  16

  
	
  2.3

  	
  Facility Fees, etc.

  	
  17

  
	
  2.4

  	
  Termination or Reduction of Revolving Commitments

  	
  17

  
	
  2.5

  	
  Optional Prepayments

  	
  17

  
	
  2.6

  	
  Conversion and Continuation Options

  	
  17

  
	
  2.7

  	
  Limitations on Eurodollar Tranches

  	
  18

  
	
  2.8

  	
  Interest Rates and Payment Dates

  	
  18

  
	
  2.9

  	
  Computation of Interest and Fees

  	
  18

  
	
  2.10

  	
  Inability to Determine Interest Rate

  	
  19

  
	
  2.11

  	
  Pro Rata Treatment and Payments

  	
  19

  
	
  2.12

  	
  Requirements of Law

  	
  20

  
	
  2.13

  	
  Taxes

  	
  21

  
	
  2.14

  	
  Indemnity

  	
  23

  
	
  2.15

  	
  Change of Lending Office

  	
  23

  
	
  2.16

  	
  Replacement of Lenders

  	
  23

  
	
  2.17

  	
  Increase in Revolving Commitments

  	
  24

  
	
   

  	
   

  
	
  SECTION 3.

  	
  REPRESENTATIONS AND WARRANTIES

  	
  25

  
	
   

  	
   

  
	
  3.1

  	
  Financial Condition

  	
  25

  
	
  3.2

  	
  No Change

  	
  26

  
	
  3.3

  	
  Existence; Compliance with Law

  	
  26

  
	
  3.4

  	
  Power; Authorization; Enforceable Obligations

  	
  26

  
	
  3.5

  	
  No Legal Bar

  	
  26

  
	
  3.6

  	
  Litigation

  	
  26

  
	
  3.7

  	
  No Default

  	
  27

  
	
  3.8

  	
  Ownership of Property; Liens

  	
  27

  
	
  3.9

  	
  Intellectual Property

  	
  27

  
	
  3.10

  	
  Taxes

  	
  27

  
	
  3.11

  	
  Federal Regulations

  	
  27

  
	
  3.12

  	
  ERISA

  	
  28

  
	
  3.13

  	
  Membership in NASD; CFTC; Registration, etc.

  	
  28

  
	
  3.14

  	
  Subsidiaries

  	
  28

  
	
  3.15

  	
  Use of Proceeds

  	
  28

  
	
  3.16

  	
  Environmental Matters

  	
  28

  
	
  3.17

  	
  Accuracy of Information, etc.

  	
  29

  
	
  3.18

  	
  Security Documents

  	
  30

  
				

 

 

	
  SECTION 4.

  	
  CONDITIONS PRECEDENT

  	
  30

  
	
   

  	
   

  
	
  4.1

  	
  Conditions to Initial Extension of Credit

  	
  30

  
	
  4.2

  	
  Conditions to Each Extension of Credit

  	
  31

  
	
   

  	
   

  
	
  SECTION 5.

  	
  AFFIRMATIVE COVENANTS

  	
  32

  
	
   

  	
   

  
	
  5.1

  	
  Financial Statements

  	
  32

  
	
  5.2

  	
  Certificates; Other Information

  	
  33

  
	
  5.3

  	
  Payment of Obligations

  	
  33

  
	
  5.4

  	
  Maintenance of Existence; Compliance

  	
  33

  
	
  5.5

  	
  Maintenance of Property; Insurance

  	
  33

  
	
  5.6

  	
  Inspection of Property; Books and Records;
  Discussions

  	
  33

  
	
  5.7

  	
  Notices

  	
  34

  
	
  5.8

  	
  Additional Collateral, etc.

  	
  34

  
	
  5.9

  	
  Compliance with Regulatory Requirements

  	
  35

  
	
  5.10

  	
  Post-Closing Covenant

  	
  36

  
	
   

  	
   

  
	
  SECTION 6.

  	
  NEGATIVE COVENANTS

  	
  36

  
	
   

  	
   

  
	
  6.1

  	
  Financial Condition Covenants

  	
  36

  
	
  6.2

  	
  Indebtedness

  	
  36

  
	
  6.3

  	
  Liens

  	
  38

  
	
  6.4

  	
  Fundamental Changes

  	
  39

  
	
  6.5

  	
  Disposition of Property

  	
  40

  
	
  6.6

  	
  Restricted Payments

  	
  40

  
	
  6.7

  	
  Investments

  	
  41

  
	
  6.8

  	
  Transactions with Affiliates

  	
  42

  
	
  6.9

  	
  Changes in Fiscal Periods

  	
  42

  
	
  6.10

  	
  Lines of Business

  	
  42

  
	
   

  	
   

  
	
  SECTION 7.

  	
  EVENTS OF DEFAULT

  	
  42

  
	
   

  	
   

  
	
  SECTION 8.

  	
  THE AGENTS

  	
  44

  
	
   

  	
   

  
	
  8.1

  	
  Appointment

  	
  44

  
	
  8.2

  	
  Delegation of Duties

  	
  45

  
	
  8.3

  	
  Exculpatory Provisions

  	
  45

  
	
  8.4

  	
  Reliance by Administrative Agent

  	
  46

  
	
  8.5

  	
  Notice of Default

  	
  46

  
	
  8.6

  	
  Non-Reliance on Agents and Other Lenders

  	
  46

  
	
  8.7

  	
  Indemnification

  	
  47

  
	
  8.8

  	
  Agent in Its Individual Capacity

  	
  47

  
	
  8.9

  	
  Successor Administrative Agent

  	
  47

  
	
  8.10

  	
  Syndication Agent

  	
  48

  
	
  8.11

  	
  Co-Syndication Agents

  	
  48

  
	
   

  	
   

  
	
  SECTION 9.

  	
  MISCELLANEOUS

  	
  48

  
	
   

  	
   

  
	
  9.1

  	
  Amendments and Waivers

  	
  48

  
	
  9.2

  	
  Notices

  	
  49

  
	
  9.3

  	
  No Waiver; Cumulative Remedies

  	
  49

  
	
  9.4

  	
  Survival of Representations and Warranties

  	
  49

  
				

 

 

	
  9.5

  	
  Payment of Expenses and Taxes

  	
  49

  
	
  9.6

  	
  Successors and Assigns; Participations and
  Assignments

  	
  50

  
	
  9.7

  	
  Adjustments; Set-off

  	
  53

  
	
  9.8

  	
  Counterparts

  	
  53

  
	
  9.9

  	
  Severability

  	
  54

  
	
  9.10

  	
  Integration

  	
  54

  
	
  9.11

  	
  GOVERNING LAW

  	
  54

  
	
  9.12

  	
  Submission To Jurisdiction; Waivers

  	
  54

  
	
  9.13

  	
  Acknowledgements

  	
  54

  
	
  9.14

  	
  Releases of Guarantees and Liens

  	
  55

  
	
  9.15

  	
  Confidentiality

  	
  55

  
	
  9.16

  	
  WAIVERS OF JURY TRIAL

  	
  55

  
	
  9.17

  	
  USA PATRIOT Act

  	
  56

  

 

 

	
  SCHEDULES:

  	
   

  
	
   

  	
   

  	
   

  
	
  1.1A

  	
  Revolving Commitments

  	
   

  
	
  1.1B

  	
  Broker-Dealer Subsidiaries

  	
   

  
	
  1.1C

  	
  Principal Subsidiaries

  	
   

  
	
  3.4

  	
  Consents, Authorizations, Filings and Notices

  	
   

  
	
  3.14

  	
  Subsidiaries

  	
   

  
	
  3.18(a)

  	
  UCC Filing Jurisdictions

  	
   

  
	
  6.2(e)

  	
  Existing Indebtedness

  	
   

  
	
  6.3(f)

  	
  Existing Liens

  	
   

  
	
  6.7(f)

  	
  Existing Investments

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBITS:

  	
   

  
	
   

  	
   

  	
   

  
	
  A

  	
  Form of Guarantee and Collateral Agreement

  	
   

  
	
  B

  	
  Form of Pledge and Collateral Agency Agreement

  	
   

  
	
  C

  	
  Form of Compliance Certificate

  	
   

  
	
  D

  	
  Form of Closing Certificate

  	
   

  
	
  E

  	
  Form of Assignment and Assumption

  	
   

  
	
  F

  	
  Form of Legal Opinion of Dechert LLP

  	
   

  
	
  G

  	
  Form of Exemption Certificate

  	
   

  

 

 

CREDIT AGREEMENT
(this “Agreement”), dated as of May 19, 2006, among INTERACTIVE BROKERS
GROUP LLC, a Connecticut limited liability company (the “Borrower”), the
several banks and other financial institutions or entities from time to time
parties to this Agreement (the “Lenders”). JPMORGAN CHASE BANK, N.A., as
Administrative Agent (as defined below), HARRIS N.A., as Syndication Agent (as
defined below), and CITIBANK, N.A. and HSBC BANK USA, NATIONAL ASSOCIATION, as
Co-Syndication Agents (as defined below).

 

The parties hereto
hereby agree as follows:

 

SECTION
1. DEFINITIONS

 

1.1                     Defined
Terms. As used in this Agreement, the terms listed in this Section 1.1
shall have the respective meanings set forth in this Section 1.1.

 

“ABR”: for
any day, a rate per annum (rounded upwards, if necessary, to the next 1/100 of
1%) equal to the greater of (a) the Prime Rate in effect on such day and (b)
the Federal Funds Effective Rate in effect on such day plus 1/2 of 1%. For purposes hereof: “Prime
Rate” shall mean the rate of interest per annum publicly announced from
time to time by JPMorgan Chase Bank, N.A., as its prime rate in effect at its
principal office in New York City (the Prime Rate not being intended to be the
lowest rate of interest charged by JPMorgan Chase Bank, N.A. in connection with
extensions of credit to debtors). Any change in the ABR due to a change in the
Prime Rate or the Federal Funds Effective Rate shall be effective as of the
opening of business on the effective day of such change in the Prime Rate or
the Federal Funds Effective Rate, respectively.

 

“ABR Loans”:
Loans the rate of interest applicable to which is based upon the ABR.

 

“Act”: as
defined in Section 9.17.

 

“Adjustment
Date”: as defined in the Pricing Grid.

 

“Administrative
Agent”: JPMorgan Chase Bank, N.A., together with its affiliates, as the
joint lead arranger of the Revolving Commitments and as the administrative
agent for the Lenders under this Agreement and the other Loan Documents,
together with any of its successors.

 

“Affiliate”:
as to any Person, any other Person that, directly or indirectly, is in control
of, is controlled by, or is under common control with, such Person. For
purposes of this definition, “control” of a Person means the power, directly or
indirectly, to direct or cause the direction of the management and policies of
such Person, whether by contract or otherwise. For purposes of Section 6.8, “Affiliate”
shall also include a Person with the power, directly or indirectly, to vote 10%
or more of the securities having ordinary voting power for the election of
directors (or persons performing similar functions) of such Person.

 

“Agents”:
the collective reference to the Administrative Agent, the Collateral Agent, the
Syndication Agent and the Co-Syndication Agents.

 

“Aggregate
Exposure”: with respect to any Lender at any time, an amount equal to the
amount of such Lender’s Revolving Commitment then in effect or, if the
Revolving Commitments have been terminated, the amount of such Lender’s
Revolving Loans then outstanding.

 

 

“Aggregate
Exposure Percentage”: with respect to any Lender at any time, the ratio
(expressed as a percentage) of such Lender’s Aggregate Exposure at such time to
the Aggregate Exposure of all Lenders at

such time.

 

“Agreement”:
as defined in the preamble hereto.

 

“Applicable Margin”:
as set forth in the Pricing Grid.

 

“Approved Fund”:
as defined in Section 9.6(b).

 

“Assignee”:
as defined in Section 9.6(b).

 

“Assignment and
Assumption”: an Assignment and Assumption, substantially in the form of
Exhibit E.

 

“Assuming
Lender”: as defined in Section 2.17.

 

“Available
Revolving Commitment”: as to any Lender at any time, an amount equal to the
excess, if any, of (a) such Lender’s Revolving Commitment then in effect over
(b) such Lender’s Revolving Extensions of Credit

then outstanding.

 

“Banking
Services”: treasury management services (including, without limitation,
controlled disbursement, automated clearinghouse transactions, return items,
overdrafts and interstate depository network services) provided to any Loan
Party by JPMorgan Chase Bank, N.A., any other Lender or any of their
Affiliates, which are governed by the relevant agreement, if any, among the
applicable Loan Party and the provider of such services.

 

“Banking
Services Obligations”: any and all obligations of the Loan Parties, whether
absolute or contingent and howsoever and whensoever created, arising, evidenced
or acquired (including all renewals, extensions and modifications thereof and
substitutions therefor) in connection with Banking Services or, to the extent
applicable, under the agreement governing the provision of such Banking
Services.

 

“Benefitted
Lender”: as defined in Section 9.7(a).

 

“Board”:
the Board of Governors of the Federal Reserve System of the United States (or
any successor).

 

“Borrower”:
as defined in the preamble hereto.

 

“Borrowing Date”:
any Business Day specified by the Borrower as a date on which the Borrower
requests the relevant Lenders to make Loans hereunder.

 

“Broker-Dealer
Subsidiaries”: the Subsidiaries listed on Schedule 1.1B and any other Subsidiary
that becomes a registered broker-dealer or the foreign equivalent of a
registered broker-dealer after the date hereof.

 

“Business”:
as defined in Section 3.16(b).

 

“Business Day”:
a day other than a Saturday, Sunday or other day on which commercial banks in
New York City are authorized or required by law to close, provided, that
with respect to notices

 

2

 

and determinations in
connection with, and payments of principal and interest on, Eurodollar Loans,
such day is also a day for trading by and between banks in Dollar deposits in
the interbank eurodollar market.

 

“Capital Lease
Obligations”: as to any Person, the obligations of such Person to pay rent
or other amounts under any lease of (or other arrangement conveying the right
to use) real or personal property, or a combination thereof, which obligations
are required to be classified and accounted for as capital leases on a balance
sheet of such Person under GAAP and, for the purposes of this Agreement, the
amount of such obligations at any time shall be the capitalized amount thereof
at such time determined in accordance with GAAP.

 

“Capital Stock”:
any and all shares, interests, participations or other equivalents (however
designated) of capital stock of a corporation, any and all equivalent ownership
interests in a Person (other than a corporation) and any and all warrants,
rights or options to purchase any of the foregoing, except for debt securities
convertible or exchangeable into such Capital Stock.

 

“Cash
Equivalents”: (a) marketable direct obligations issued by, or
unconditionally guaranteed by, the United States Government or issued by any
agency thereof and backed by the full faith and credit of the United States, in
each case maturing within one year from the date of acquisition; (b)
certificates of deposit, time deposits, eurodollar time deposits or overnight
bank deposits having maturities of six months or less from the date of
acquisition issued by any Lender or by any commercial bank organized under the
laws of the United States or any state thereof having combined capital and
surplus of not less than $500.0 million; (c) commercial paper of an issuer
rated at least A-1 by Standard & Poor’s Ratings Services (“S&P”)
or P-1 by Moody’s Investors Service, Inc. (“Moody’s”), or carrying an
equivalent rating by a nationally recognized rating agency, if both of the two
named rating agencies cease publishing ratings of commercial paper issuers
generally, and maturing within six months from the date of acquisition; (d)
repurchase obligations of any Lender or of any commercial bank satisfying the
requirements of clause (b) of this definition, having a term of not more than
30 days, with respect to securities issued or fully guaranteed or insured by the
United States government; (e) securities with maturities of one year or less
from the date of acquisition issued or fully guaranteed by any state,
commonwealth or territory of the United States, by any political subdivision or
taxing authority of any such state, commonwealth or territory or by any foreign
government, the securities of which state, commonwealth, territory, political
subdivision, taxing authority or foreign government (as the case may be) are
rated at least A by S&P or A by Moody’s; (f) securities with maturities of
six months or less from the date of acquisition backed by standby letters of
credit issued by any Lender or any commercial bank satisfying the requirements
of clause (b) of this definition; (g) money market mutual or similar funds that
invest exclusively in assets satisfying the requirements of clauses (a) through
(f) of this definition; or (h) money market funds that (i) comply with the
criteria set forth in SEC Rule 2a-7 under the Investment Company Act of 1940,
as amended, (ii) are rated AAA by S&P and Aaa by Moody’s and (iii) have
portfolio assets of at least $5.0 billion.

 

“CFTC”: the
Commodity Futures Trading Commission or any regulatory body which succeeds to
the functions of the Commodity Futures Trading Commission.

 

“Closing Date”:
the date on which the conditions precedent set forth in Section 4.1 shall have
been satisfied, which date shall not be later than May 19, 2006.

 

“Co-Syndication
Agents”: each of Citibank, N.A. and HSBC Bank USA, National Association,
together with its affiliates, as the co-syndication agent for the Lenders under
this Agreement and the other Loan Documents, together with any of its
successors.

 

“Code”: the
Internal Revenue Code of 1986, as amended from time to time.

 

3

 

“Collateral”:
all property of the Loan Parties, now owned or hereafter acquired, upon which a
Lien is purported to be created by any Security Document.

 

“Collateral
Agent”: as defined in the Pledge and Collateral Agency Agreement.

 

“Commitment
Increase”: as defined in Section 2.17.

 

“Commitment
Increase Date”: as defined
in Section 2.17.

 

“Commitment
Termination Date”: May 19, 2009.

 

“Commonly
Controlled Entity”: an entity, whether or not incorporated, that is under
common control with the Borrower within the meaning of Section 4001 of ERISA or
is part of a group that includes the Borrower and that is treated as a single
employer under Section 414 of the Code.

 

“Compliance
Certificate”: a certificate duly executed by a Responsible Officer
substantially in the form

of Exhibit C.

 

“Conduit Lender”:
any special purpose corporation organized and administered by any Lender for
the purpose of making Loans otherwise required to be made by such Lender and
designated by such Lender in a written instrument; provided, that the
designation by any Lender of a Conduit Lender shall not relieve the designating
Lender of any of its obligations to fund a Loan under this Agreement if, for
any reason, its Conduit Lender fails to fund any such Loan, and the designating
Lender (and not the Conduit Lender) shall have the sole right and
responsibility to deliver all consents and waivers required or requested under
this Agreement with respect to its Conduit Lender, and provided, further,
that no Conduit Lender shall (a) be entitled to receive any greater amount
pursuant to Section 2.12, 2.13, 2.14 or 9.5 than the designating Lender would
have been entitled to receive in respect of the extensions of credit made by
such Conduit Lender or (b) be deemed to have any Revolving Commitment.

 

“Confidential
Information Memorandum”: the Confidential Information Memorandum dated April
2006 and furnished to certain Lenders.

 

“Consolidated
Capitalization Ratio”: the ratio of (a) Consolidated Total Debt to
(b) Consolidated Total Capitalization.

 

“Consolidated
Net Income”: for any period, the consolidated net income (or loss) of the
Borrower and its Subsidiaries, determined on a consolidated basis in accordance
with GAAP; provided that (a) there shall be excluded (i) the income (or deficit)
of any Person accrued prior to the date it becomes a Subsidiary of the Borrower
or is merged into or consolidated with the Borrower or any of its Subsidiaries,
(ii) the income (or deficit) of any Person (other than a Subsidiary of the
Borrower) in which the Borrower or any of its Subsidiaries has an ownership
interest, except to the extent that any such income is actually received by the
Borrower or such Subsidiary in the form of dividends or similar distributions
and (iii) the undistributed earnings of any Subsidiary of the Borrower to the
extent that the declaration or payment of dividends or similar distributions by
such Subsidiary is not at the time permitted by the terms of any Contractual
Obligation (other than under any Loan Document) or Requirement of Law
applicable to such Subsidiary and (b) there shall be included gains and losses
with respect to “other comprehensive income”, as determined in accordance with
GAAP.

 

“Consolidated
Regulatory Capital”: the net capital of the Borrower and its Subsidiaries
determined in accordance with Rule 15c3-l (or any successor rule or regulation)
promulgated by the SEC under the Exchange Act, or any equivalent foreign law,
rule, regulation or guideline; provided, that (i)

 

4

 

regulatory capital
charges in the form of “haircuts” (and foreign equivalents) shall be excluded
and (ii) all other regulatory capital charges shall be included.

 

“Consolidated
Shareholders’ Equity”: at any time as of which the amount thereof is to be
determined, the sum of the following in respect of the Borrower and its
Subsidiaries (determined on a consolidated basis and excluding intercompany
items among the Borrower and its Subsidiaries): (i) the amount of issued and
outstanding share capital or member’s capital, plus (ii) the amount of
additional paid-in capital and retained income (or, in the case of a deficit,
minus the amount of such deficit), plus (or, in the event that “accumulated
other comprehensive income” at such time is negative, minus) (iii) the
amount of “accumulated other comprehensive income” which is included in the
equity section of the consolidated balance sheet, minus (iv) the
absolute value of any treasury stock and the absolute value of any stock
subscription receivables, as determined in accordance with GAAP.

 

“Consolidated
Total Capitalization”: as at any time as of which the amount thereof is to
be determined, the sum of Consolidated Total Debt plus Consolidated
Shareholders’ Equity.

 

“Consolidated
Total Debt”: at any date, the aggregate principal amount of all
Indebtedness of the Borrower and its Subsidiaries at such date (to the extent
such Indebtedness would be included on a balance sheet prepared in accordance
with GAAP); provided, that for the avoidance of doubt (A) subject to
clause (B) below, there shall be excluded from Consolidated Total Debt
Indebtedness incurred in the ordinary course of business by or on behalf of
Broker-Dealer Subsidiaries to finance working capital needs of Broker-Dealer
Subsidiaries and (B) there shall be included in Consolidated Total Debt any
third-party Indebtedness of the Borrower or any of its Subsidiaries that is
incurred for the purposes of funding (directly or through intermediate
Subsidiaries) Regulatory Capital of Broker-Dealer Subsidiaries.

 

“Continuing
Directors”: the directors of the Borrower on the Closing Date and each
other director, if, in each case, such other director’s nomination for election
to the board of directors of the Borrower is recommended by at least a majority
of the then Continuing Directors.

 

“Contractual
Obligation”: as to any Person, any agreement, undertaking or similar
provision of any security issued by such Person or of any agreement, instrument
or other undertaking (excluding a Loan Document) to which such Person is a
party or by which it or any of its property is bound.

 

“Default”:
any of the events specified in Section 7, whether or not any requirement for
the giving of notice, the lapse of time, or both, has been satisfied.

 

“Disposition”:
with respect to any property, any sale, lease, sale and leaseback, assignment,
conveyance, transfer or other disposition thereof. The terms “Dispose”
and “Disposed of” shall have correlative meanings.

 

“Dollars”
and “$”: dollars in lawful currency of the United States.

 

“Domestic
Subsidiary”: any Subsidiary of the Borrower organized under the laws of any
jurisdiction within the United States.

 

“Environmental
Laws”: any and all foreign, Federal, state, local or municipal laws, rules,
orders, regulations, statutes, ordinances, codes, decrees, requirements of any
Governmental or Regulatory Authority or other Requirements of Law (including
common law) regulating, relating to or imposing

 

5

 

liability or standards of
conduct concerning protection of human health or the environment, as now or may
at any time hereafter be in effect.

 

“ERISA”:
the Employee Retirement Income Security Act of 1974, as amended from time to
time.

 

“Eurocurrency
Reserve Requirements”: for any day as applied to a Eurodollar Loan, the
aggregate (without duplication) of the maximum rates (expressed as a decimal
fraction) of reserve requirements in effect on such day (including basic,
supplemental, marginal and emergency reserves) under any regulations of the
Board or other Governmental or Regulatory Authority having jurisdiction with
respect thereto dealing with reserve requirements prescribed for eurocurrency
funding (currently referred to as “Eurocurrency Liabilities” in Regulation D of
the Board) maintained by a member bank of the Federal Reserve System.

 

“Eurodollar
Base Rate”: with respect to each day during each Interest Period pertaining
to a Eurodollar Loan, the rate per annum determined on the basis of the rate
for deposits in Dollars for a period equal to such Interest Period commencing
on the first day of such Interest Period appearing on Page 3750 of the Telerate
screen as of 11:00 A.M., London time, two Business Days prior to the beginning
of such Interest Period. In the event that such rate does not appear on Page
3750 of the Telerate screen (or otherwise on such screen), the “Eurodollar
Base Rate” shall be determined by reference to such other comparable
publicly available service for displaying eurodollar rates as may be selected
by the Administrative Agent or, in the absence of such availability, by
reference to the rate at which the Administrative Agent is offered Dollar
deposits at or about 11:00 A.M., New York City time, two Business Days prior to
the beginning of such Interest Period in the interbank eurodollar market where
its eurodollar and foreign currency and exchange operations are then being
conducted for delivery on the first day of such Interest Period for the number
of days comprised therein.

 

“Eurodollar
Loans”: Loans the rate of interest applicable to which is based upon the
Eurodollar Rate.

 

“Eurodollar
Rate”: with respect to each day during each Interest Period pertaining to a
Eurodollar Loan, a rate per annum determined for such day in accordance with
the following formula (rounded upward to the nearest 1/100th of l%):

 

	
   

  	
  Eurodollar Base Rate

  	
   

  
	
   

  	
  1.00 - Eurocurrency Reserve Requirements

  	
   

  

 

“Eurodollar
Tranche”: the collective reference to Eurodollar Loans the then current
Interest Periods with respect to all of which begin on the same date and end on
the same later date (whether or not such Loans shall originally have been made
on the same day).

 

“Event of
Default”: any of the events specified in Section 7, provided that
any requirement for the giving of notice, the lapse of time, or both, has been
satisfied.

 

“Exchange Act”:
as defined in Section 7(k).

 

“Excluded
Regulated Subsidiary”: any Subsidiary that is a registered broker-dealer or
other regulated entity.

 

“Facility Fee
Rate”: as set forth in the Pricing Grid.

 

6

 

“Fed Funds
Loans”: Loans the rate of interest applicable to which is based upon the
Federal Funds Rate.

 

“Federal Funds
Effective Rate”: for any day, the weighted average of the rates on
overnight federal funds transactions with members of the Federal Reserve System
arranged by federal funds brokers, as published on the next succeeding Business
Day by the Federal Reserve Bank of New York, or, if such rate is not so
published for any day that is a Business Day, the average of the quotations for
the day of such transactions received by JPMorgan Chase Bank, N.A. from three
federal funds brokers of recognized standing selected by it.

 

“Federal Funds
Rate”: (i) for the first day of a Fed Funds Loan, the rate per annum which
is the average of the rates on the offered side of the Federal funds market
quoted by three interbank Federal funds brokers, selected by the Administrative
Agent, at approximately the time the applicable Borrower requests such
Borrowing, for dollar deposits in immediately available funds, for period
ending the next Business Day and in an amount, comparable to the principal
amount of such Fed Funds Loan, and (ii) for each day of such Fed Funds Loan
thereafter, the rate per annum which is the average of the rates on the offered
side of the Federal funds market quoted by three interbank Federal funds
brokers, selected by the Administrative Agent, at approximately 1:00 P.M. New
York City time, on such day for dollar deposits in immediately available funds,
for a period ending the next Business Day and in an amount comparable to the
principal amount of such Fed Funds Loan; in the case of both clauses (i) and
(ii), as determined by the Administrative Agent and rounded upwards, if
necessary, to the nearest 1/100 of 1%.

 

“Fee Payment
Date”: (a) the third Business Day following the last day of each March,
June, September and December and (b) the last day of the Revolving Commitment
Period.

 

“Foreign
Subsidiary”: any Subsidiary of the Borrower that is not a Domestic Subsidiary.

 

“Funding Office”:
the office of the Administrative Agent specified in Section 9.2 or such other
office as may be specified from time to time by the Administrative Agent as its
funding office by written notice to the Borrower and the Lenders.

 

“GAAP”:
generally accepted accounting principles in the United States as in effect from
time to time, except that for purposes of Section 6.1, GAAP shall be determined
on the basis of such principles in effect on the date hereof and consistent
with those used in the preparation of the most recent audited financial
statements referred to in Section 3.1. In the event that any “Accounting Change”
(as defined below) shall occur and such change results in a change in the
method of calculation of financial covenants, standards or terms in this
Agreement, then the Borrower and the Administrative Agent agree to enter into
negotiations in order to amend such provisions of this Agreement so as to
reflect equitably such Accounting Changes with the desired result that the criteria
for evaluating the Borrower’s financial condition shall be the same after such
Accounting Changes as if such Accounting Changes had not been made. Until such
time as such an amendment shall have been executed and delivered by the
Borrower, the Administrative Agent and the Required Lenders, all financial
covenants, standards and terms in this Agreement shall continue to be
calculated or construed as if such Accounting Changes had not occurred. “Accounting
Changes” refers to changes in accounting principles required or permitted by
the promulgation of any rule, regulation, pronouncement or opinion by the
Financial Accounting Standards Board of the American Institute of Certified
Public Accountants or, if applicable, the SEC.

 

“Governmental
or Regulatory Authority”: any nation or government, any state or other
political subdivision thereof, any agency, authority, instrumentality,
regulatory body, court, central bank or other entity exercising executive,
legislative, judicial, taxing, regulatory or administrative functions of

 

7

 

or pertaining to
government, any securities exchange and any self-regulatory organization
(including the NYSE, the Eurex US, the NASD and the National Association of
Insurance Commissioners).

 

“Group Members”:
the collective reference to the Borrower and its Subsidiaries.

 

“Guarantee and
Collateral Agreement”: the Guarantee and Collateral Agreement to be
executed and delivered by the Borrower and each Guarantor, substantially in the
form of Exhibit A.

 

“Guarantee
Obligation”: as to any Person (the “guaranteeing person”), any
obligation, including a reimbursement, counterindemnity or similar obligation,
of the guaranteeing Person that guarantees or in effect guarantees, or which is
given to induce the creation of a separate obligation by another Person
(including any bank under any letter of credit) that guarantees or in effect
guarantees, any Indebtedness, leases, dividends or other obligations (the “primary
obligations”) of any other third Person (the “primary obligor”) in
any manner, whether directly or indirectly, including any obligation of the
guaranteeing person, whether or not contingent, (i) to purchase any such
primary obligation or any property constituting direct or indirect security
therefor, (ii) to advance or supply funds (1) for the purchase or payment of
any such primary obligation or (2) to maintain working capital or equity
capital of the primary obligor or otherwise to maintain the net worth or
solvency of the primary obligor, (iii) to purchase property, securities or
services primarily for the purpose of assuring the owner of any such primary
obligation of the ability of the primary obligor to make payment of such
primary obligation or (iv) otherwise to assure or hold harmless the owner of
any such primary obligation against loss in respect thereof; provided, however,
that the term Guarantee Obligation shall not include endorsements of
instruments for deposit or collection in the ordinary course of business. The
amount of any Guarantee Obligation of any guaranteeing person shall be deemed
to be the lower of (a) an amount equal to the stated or determinable amount of
the primary obligation in respect of which such Guarantee Obligation is made
and (b) the maximum amount for which such guaranteeing person may be liable
pursuant to the terms of the instrument embodying such Guarantee Obligation,
unless such primary obligation and the maximum amount for which such
guaranteeing person may be liable are not stated or determinable, in which case
the amount of such Guarantee Obligation shall be such guaranteeing person’s
maximum reasonably anticipated liability in respect thereof as determined by
the Borrower in good faith.

 

“Guarantor”:
each Subsidiary of the Borrower other than (a) any Foreign Subsidiary and (b)
any Excluded Regulated Subsidiary.

 

“IBG Notes”:
notes of the Borrower which are customarily offered to customers of either the
Borrower or its Subsidiaries.

 

“Increasing
Lender”: as defined in Section 2.17.

 

“Indebtedness”:
of any Person at any date, without duplication, (a) all indebtedness of such
Person for borrowed money, (b) all obligations of such Person for the deferred
purchase price of property or services (other than current trade payables
incurred in the ordinary course of such Person’s business), (c) all obligations
of such Person evidenced by notes, bonds, debentures or other similar
instruments, (d) all indebtedness created or arising under any conditional sale
or other title retention agreement with respect to property acquired by such
Person (even though the rights and remedies of the seller or lender under such
agreement in the event of default are limited to repossession or sale of such
property), (e) all Capital Lease Obligations of such Person, (f) all obligations
of such Person, contingent or otherwise, as an account party or applicant under
or in respect of acceptances, letters of credit, surety bonds or similar
arrangements, (g) the liquidation value of all mandatorily redeemable preferred
Capital Stock of such Person (to the extent such Capital Stock is required to
be redeemed prior to the date that is six months after the then scheduled
termination of this Agreement), (h) all Guarantee Obligations of such

 

8

 

Person in respect of
obligations of the kind referred to in clauses (a) through (g) above, (i) all
obligations of the kind referred to in clauses (a) through (h) above secured by
(or for which the holder of such obligation has an existing right, contingent
or otherwise, to be secured by) any Lien on property (including accounts and
contract rights) owned by such Person, whether or not such Person has assumed
or become liable for the payment of such obligation, (j) for the purposes of
Section 7(e) only, all obligations of such Person in respect of Swap Agreements
and (k) for the purposes of Section 7(e) only, all obligations or liabilities
of such Person arising from a Repo Transaction. The Indebtedness of any Person
shall include the Indebtedness of any other entity (including any partnership
in which such Person is a general partner) to the extent such Person is liable
therefor as a result of such Person’s ownership interest in or other
relationship with such entity, except to the extent the terms of such
Indebtedness expressly provide that such Person is not liable therefor.

 

“Indemnified
Liabilities”: as defined in Section 9.5.

 

“Indemnitee”:
as defined in Section 9.5.

 

“Insolvency”:
with respect to any Multiemployer Plan, the condition that such Plan is
insolvent within the meaning of Section 4245 of ERISA.

 

“Insolvent”:
pertaining to a condition of Insolvency.

 

“Intellectual
Property”: the collective reference to all rights, priorities and
privileges relating to intellectual property, whether arising under United
States, multinational or foreign laws or otherwise, including copyrights,
copyright licenses, patents, patent licenses, trademarks, trademark licenses,
technology, know-how and processes.

 

“Interest
Payment Date”: (a) as to any Fed Funds Loan, the last day of each calendar
month to occur while such Loan is outstanding and the final maturity date of
such Loan, (b) as to any Eurodollar Loan having an Interest Period of three
months or less, the last day of such Interest Period, (c) as to any Eurodollar
Loan having an Interest Period longer than three months, each day that is three
months, or a whole multiple thereof, after the first day of such Interest
Period and the last day of such Interest Period or (d) as to any Loan, the date
of any repayment or prepayment made in respect thereof, except in the case of a
partial prepayment of a Revolving Loan that is a Fed Funds Loan.

 

“Interest
Period”: as to any Eurodollar Loan, (a) initially, the period commencing on
the borrowing or conversion date, as the case may be, with respect to such
Eurodollar Loan and ending one, two, three or six (or, if agreed to by all
Lenders, nine or twelve) months thereafter, as selected by the Borrower in its
notice of borrowing or notice of conversion, as the case may be, given with
respect thereto; and (b) thereafter, each period commencing on the last day of
the next preceding Interest Period applicable to such Eurodollar Loan and
ending one, two, three or six (or, if agreed to by all Lenders, nine or twelve)
months thereafter, as selected by the Borrower by irrevocable notice to the
Administrative Agent not later than 12:00 Noon, New York City time, on the date
that is three Business Days prior to the last day of the then current Interest
Period with respect thereto; provided that, all of the foregoing
provisions relating to Interest Periods are subject to the following:

 

(i)                         if any
Interest Period would otherwise end on a day that is not a Business Day, such
Interest Period shall be extended to the next succeeding Business Day unless
the result of such extension would be to carry such Interest Period into
another calendar month in which event such Interest Period shall end on the
immediately preceding Business Day;

 

9

 

(ii)                      the Borrower
may not select an Interest Period that would extend beyond the Maturity Date;

 

(iii)                   any Interest
Period that begins on the last Business Day of a calendar month (or on a day
for which there is no numerically corresponding day in the calendar month at
the end of such Interest Period) shall end on the last Business Day of a
calendar month; and

 

(iv)                  the Borrower
shall select Interest Periods so as not to require a payment or prepayment of
any Eurodollar Loan during an Interest Period for such Loan.

 

“Investments”:
as defined in Section 6.7.

 

“Lenders”:
as defined in the preamble hereto; provided, that unless the context
otherwise requires, each reference herein to the Lenders shall be deemed to
include any Conduit Lender.

 

“Lien”: any
mortgage, pledge, hypothecation, assignment, deposit arrangement encumbrance,
lien (statutory or other), charge or other security interest or any preference,
priority or other security agreement or preferential arrangement of any kind or
nature whatsoever (including any conditional sale or other title retention
agreement and any capital lease having substantially the same economic effect
as any of the foregoing).

 

“Liquidity
Ratio”: as defined in Section 6.1(c).

 

“Loan”: any
loan made by any Lender pursuant to this Agreement.

 

“Loan Documents”:
this Agreement, the Security Documents, the Notes and any amendment, waiver,
supplement or other modification to any of the foregoing.

 

“Loan Parties”:
each Group Member that is a party to a Loan Document.

 

“Material
Adverse Effect”: a material adverse effect on (a) the business, property,
operations, condition (financial or otherwise) or prospects of the Borrower and
its Subsidiaries taken as a whole or (b) the validity or enforceability of this
Agreement or any of the other Loan Documents or the rights or remedies of the
Administrative Agent or the Lenders hereunder or thereunder.

 

“Material Group
Member”: the Borrower or any Material Subsidiary.

 

“Material
Subsidiary”: means any Subsidiary of the Borrower that, as of the last day of
the most recently ended fiscal quarter of the Borrower, had assets or revenues
(on a consolidated basis including its Subsidiaries) with a value in excess of
5.0% of the consolidated assets of the Borrower or 5.0% of the consolidated
revenues of the Borrower; provided, that in the event Subsidiaries that
would otherwise not be Material Subsidiaries shall in the aggregate account for
a percentage in excess of 10.0% of the consolidated assets of the Borrower or
10.0% of the consolidated revenues of the Borrower as of the end of and for the
most recently completed fiscal year, then one or more of such Subsidiaries as
designated by the Borrower (or, if the Borrower shall make no designation, one
or more of such Subsidiaries in descending order based on their respective
contributions to the consolidated assets of the Borrower), shall be included as
Material Subsidiaries to the extent necessary to eliminate such excess.

 

“Materials of
Environmental Concern”: any gasoline or petroleum (including crude oil or
any fraction thereof) or petroleum products or any hazardous or toxic
substances, materials or wastes,

 

10

 

defined or regulated as
such in or under any Environmental Law, including asbestos, polychlorinated
biphenyls and urea-formaldehyde insulation.

 

“Maturity Date”:
May 19, 2010.

 

“Moody’s”:
Moody’s Investors Service, Inc.

 

“Multiemployer
Plan”: a Plan that is a multiemployer plan as defined in Section
4001(a)(3)of ERISA.

 

“NASD”: the
National Association of Securities Dealers, Inc., or any other self-regulatory
body which succeeds to the functions of the National Association of Securities
Dealers, Inc.

 

“Non-Excluded
Taxes”: as defined in Section 2.13(a).

 

“Non-U.S.
Lender”: as defined in Section 2.13(d).

 

“Notes”:
the collective reference to any promissory note evidencing Loans.

 

“NYSE”: the
New York Stock Exchange.

 

“Obligations”:
the unpaid principal of and interest on (including interest accruing after the
maturity of the Loans and interest accruing after the filing of any petition in
bankruptcy, or the commencement of any insolvency, reorganization or like
proceeding, relating to the Borrower, whether or not a claim for post-filing or
post-petition interest is allowed in such proceeding) the Loans and all other
obligations and liabilities of the Borrower to the Administrative Agent or to
any Lender (or, in the case of Specified Swap Agreements and Banking Services
Obligations, any Affiliate of any Lender), whether direct or indirect, absolute
or contingent, due or to become due, or now existing or hereafter incurred,
which may arise under this Agreement, any other Loan Document, any Specified
Swap Agreement, any Banking Services Obligations or any other document made,
delivered or given in connection herewith or therewith, whether on account of
principal, interest, reimbursement obligations, fees, indemnities, costs,
expenses (including all fees, charges and disbursements of counsel to the
Administrative Agent or to any Lender that are required to be paid by the
Borrower pursuant hereto) or otherwise.

 

“Other Taxes”:
any and all present or future stamp or documentary taxes or any other excise or
property taxes, charges or similar levies arising from any payment made
hereunder or from the execution, delivery or enforcement of, or otherwise with
respect to, this Agreement or any other Loan Document.

 

“Participant”:
as defined in Section 9.6(c).

 

“PBGC”: the
Pension Benefit Guaranty Corporation established pursuant to Subtitle A of
Title IV of ERISA (or any successor).

 

“Permitted
Acquisition”: any acquisition of all or substantially all the assets of, or
shares or other equity interests in, a Person or division or line of business
of a Person that is in the same or similar line of business of (or primarily
engages in the same or similar business activities as) the Borrower and that
has been approved by such Person’s board of directors (or equivalent) if
immediately after giving effect thereto: (a) no Default or Event of Default
shall have occurred and be continuing or would result therefrom, (b) any
acquired or newly formed corporation, partnership, association or other
business entity shall be a Wholly Owned Subsidiary, or a Domestic Subsidiary in
which an Investment is

 

11

 

permitted (and to the
extent permitted) pursuant to Section 6.7, and all actions required to be
taken, if any, with respect to such acquired or newly formed Subsidiary under
Section 5.8 shall have been taken and (c) the Borrower and the Subsidiaries shall
be in compliance, on a pro forma basis after giving effect to such acquisition,
with the covenants contained in Section 6.1 recomputed as at the last day of
the most recently ended fiscal quarter of the Borrower and the Subsidiaries as
if such acquisition and related financings or other transactions had occurred
on the first day of each relevant period for testing such compliance.

 

“Permitted
Holders”: (i) Thomas Peterffy; any children and/or any grandchildren (in
each case, natural or adopted); any trust or similar entity for the benefit, to
the extent of at least 99%, of Thomas Peterffy or the benefit of any children
or any grandchildren (in each case, natural or adopted); and/or any corporation
or partnership in which the direct and beneficial owner of at least 99% of the
equity interest consists of Thomas Peterffy, any children and/or any
grandchildren (in each case, natural or adopted) or (ii) upon his death,
incompetency or disability for purposes of the protection and management of his
assets, Thomas Peterffy’s heirs, executors, administrators and/or personal
representatives.

 

“Person”:
an individual, partnership, corporation, limited liability company, business
trust, joint stock company, trust, unincorporated association, joint venture,
Governmental or Regulatory Authority or other entity of whatever nature.

 

“Plan”: at
a particular time, any employee benefit plan that is covered by ERISA and in
respect of which the Borrower or a Commonly Controlled Entity is (or, if such
plan were terminated at such time, would under Section 4069 of ERISA be deemed
to be) an “employer” as defined in Section 3(5) of ERISA.

 

“Pledge and
Collateral Agency Agreement”: the Pledge and Collateral Agency Agreement to
be executed and delivered by the Borrower and each Guarantor, substantially in
the form of Exhibit B.

 

“Pricing Grid”:
the table set forth below.

 

	
  Moody’s/S&P Rating

  	
   

  	
  Facility Fee

  	
   

  	
  Applicable Margin

  for Eurodollar Loans

  	
   

  	
  Applicable Margin

  for Fed Funds Loans

  	
   

  	
  Applicable Margin 

  for ABR Loans

  	
   

  
	
  Baa2/BBB or higher

  	
   

  	
  0.125

  	
  %

  	
  0.50

  	
  %

  	
  0.65

  	
  %

  	
  0.00

  	
  %

  
	
  Baa3/BBB-

  	
   

  	
  0.15

  	
  %

  	
  0.60

  	
  %

  	
  0.75

  	
  %

  	
  0.00

  	
  %

  
	
  Bal/BB+

  	
   

  	
  0.20

  	
  %

  	
  0.80

  	
  %

  	
  0.95

  	
  %

  	
  0.00

  	
  %

  
	
  Ba2/BB or lower

  	
   

  	
  0.25

  	
  %

  	
  1.25

  	
  %

  	
  1.40

  	
  %

  	
  0.25

  	
  %

  

 

In the event that
only one of Moody’s or S&P has issued a counterparty credit rating for the
Borrower, the facility fee and the Applicable Margin shall correspond to such
rating level. In the event that both Moody’s and S&P have issued a
counterparty credit rating for the Borrower and such ratings are at different
levels on the pricing grid, (i) the higher level shall be used if the two
ratings are only one level apart and (ii) the level immediately below the
higher level shall be used if the two ratings are two or more levels apart. At
any time when neither Moody’s nor S&P have issued a counterparty credit
rating of the Borrower, it shall be assumed for pricing grid purposes that the
Borrower is rated Ba2/BB. Changes in the Applicable Margin and facility fee
resulting from changes in the unsecured debt

 

12

 

rating by Moody’s or
S&P shall become effective on the business day following the announcement
of such new rating.

 

“Principal
Subsidiary”: each Subsidiary set forth on Schedule 1.1C and any other
Subsidiary the shareholders’ equity of which represents more than 5.0% of
Consolidated Shareholders’ Equity.

 

“Properties”:
as defined in Section 3.16(a).

 

“Register”:
as defined in Section 9.6(b).

 

“Regulation U”:
Regulation U of the Board as in effect from time to time.

 

“Regulatory
Capital”: the capital of any Broker-Dealer Subsidiary which is used by such
Broker-Dealer Subsidiary for the purposes of complying with applicable domestic
or foreign regulatory capital requirements.

 

“Reorganization”:
with respect to any Multiemployer Plan, the condition that such plan is in
reorganization within the meaning of Section 4241 of ERISA.

 

“Repo
Transaction”: any of the following: repurchase agreements, reverse
repurchase agreements, sell buy backs and buy sell backs agreements, securities
lending and borrowing agreements and any other agreement or transaction similar
to those referred to above in this definition.

 

“Reportable
Event”: any of the events set forth in Section 4043(c) of ERISA, other than
those events as to which the thirty day notice period is waived under
subsections .27, .28, .29, .30, .31, .32, .34 or .35 of PBGC Reg. § 4043.

 

“Required
Lenders”: at any time, the holders of more than 66 2/3% of the Total
Revolving Commitments then in effect or, if the Revolving Commitments have been
terminated, the Total Revolving Extensions of Credit then outstanding.

 

“Requirement of
Law”: as to any Person, any law, treaty, rule or regulation or
determination of an arbitrator or a court or other Governmental or Regulatory
Authority, in each case applicable to or binding upon such Person or any of its
property or to which such Person or any of its property is subject.

 

“Responsible
Officer”: the chief executive officer, president or chief financial officer
of the Borrower, but in any event, with respect to financial matters, the chief
financial officer, treasurer, controller or principal accounting officer of the
Borrower.

 

“Restricted
Payments”: as defined in Section 6.6.

 

“Revolving
Commitment”: as to any Lender, the obligation of such Lender, if any, to
make Revolving Loans in an aggregate principal and/or face amount not to exceed
the amount set forth under the heading “Revolving Commitment” opposite such
Lender’s name on Schedule 1.1A or in the Assignment and Assumption pursuant to
which such Lender became a party hereto, as the same may be changed from time
to time pursuant to the terms hereof. The original amount of the Total
Revolving Commitments is $300.0 million.

 

13

 

“Revolving
Commitment Period”: the period from and including the Closing Date to the
Commitment Termination Date.

 

“Revolving
Extensions of Credit”: as to any Lender at any time, an amount equal to the
aggregate principal amount of all Revolving Loans held by such Lender then
outstanding.

 

“Revolving Loans”:
as defined in Section 2.1(a).

 

“Revolving
Percentage”: as to any Lender at any time, the percentage which such Lender’s
Revolving Commitment then constitutes of the Total Revolving Commitments or, at
any time after the Revolving Commitments shall have expired or terminated, the
percentage which the aggregate principal amount of such Lender’s Revolving
Loans then outstanding constitutes of the aggregate principal amount of the
Revolving Loans then outstanding, provided, that, in the event that the
Revolving Loans are paid in full prior to the reduction to zero of the Total
Revolving Extensions of Credit, the Revolving Percentages shall be determined
in a manner designed to ensure that the other outstanding Revolving Extensions
of Credit shall be held by the Lenders on a comparable basis.

 

“S&P”:
Standard & Poor’s Ratings Service.

 

“SEC”: the
Securities and Exchange Commission, any successor thereto and any analogous
Governmental or Regulatory Authority.

 

“Secured
Parties”: as defined in the Pledge and Collateral Agency Agreement.

 

“Security
Documents”: the collective reference to the Guarantee and Collateral
Agreement, the Pledge and Collateral Agency Agreement and all other security
documents hereafter delivered to the Administrative Agent granting a Lien on
any property of any Person to secure the obligations and liabilities of any
Loan Party under any Loan Document.

 

“Single
Employer Plan”: any Plan that is covered by Title IV of ERISA, but that is
not a Multiemployer Plan.

 

“Specified Swap
Agreement”: any Swap Agreement entered into by the Borrower and any Lender
or Affiliate thereof in respect of interest rates.

 

“Subordinated
Indebtedness”: Indebtedness of the Borrower that is subordinated in right
of payment to the Obligations, provided, that such Indebtedness has (a) no
maturity, amortization, mandatory redemption or repurchase option or sinking
fund payment prior to the date that is six months after the Maturity Date, (b)
customary subordination provisions as shall be reasonably satisfactory to the Administrative
Agent and (c) no financial maintenance or performance covenants, unless such
Indebtedness shall also have standstill provisions as shall be reasonably
satisfactory to the Administrative Agent.

 

“Subsidiary”:
as to any Person, a corporation, partnership, limited liability company or
other entity of which shares of stock or other ownership interests having
ordinary voting power (other than stock or such other ownership interests
having such power only by reason of the happening of a contingency) to elect a
majority of the board of directors or other managers of such corporation,
partnership or other entity are at the time owned, or the management of which
is otherwise controlled, directly or indirectly through one or more
intermediaries, or both, by such Person. Unless otherwise qualified, all
references to a “Subsidiary” or to “Subsidiaries” in this Agreement shall refer
to a Subsidiary or Subsidiaries of the Borrower.

 

14

 

“Successor
Company”: as defined in Section 6.4(a).

 

“Swap Agreement”:
any agreement with respect to any swap, forward, future or derivative
transaction or option or similar agreement involving, or settled by reference
to, one or more rates, currencies, commodities, equity or debt instruments or
securities, or economic, financial or pricing indices or measures of economic,
financial or pricing risk or value or any similar transaction or any
combination of these transactions; provided that no phantom stock or
similar plan providing for payments only on account of services provided by
current or former directors, officers, employees or consultants of the Borrower
or any of its Subsidiaries shall be a “Swap Agreement”.

 

“Syndication
Agent”: Harris N.A., together with its affiliates, as the joint lead
arranger of the Revolving Commitments and as the syndication agent for the
Lenders under this Agreement and the other Loan Documents, together with any of
its successors.

 

“Total
Revolving Commitments”: at any time, the aggregate amount of the Revolving
Commitments then in effect.

 

“Total
Revolving Extensions of Credit”: at any time, the aggregate amount of the
Revolving Extensions of Credit of the Lenders outstanding at such time.

 

“Total
Revolving Loans”: at any time, the aggregate amount of the Revolving Loans
of the Lenders outstanding at such time.

 

“Transferee”:
any Assignee or Participant.

 

“Type”: as
to any Loan, its nature as a Fed Funds Loan, an ABR Loan or a Eurodollar Loan.

 

“United States”:
the United States of America.

 

“Voting Interests”:
with respect to any Person, Equity Interests of any class or kind ordinarily
having the power to vote for the election of, or to appoint, the managing
member or analogous Person, or directors, managers or other voting members of
the governing or managing body of, such Person.

 

“Wholly Owned
Subsidiary”: as to any Person, any other Person at least 99% of the Capital
Stock of which (other than directors’ qualifying shares required by law) is
owned by such Person directly and/or through other Wholly Owned Subsidiaries.

 

“Wholly Owned
Guarantor”: any Guarantor that is a Wholly Owned Subsidiary of the
Borrower.

 

1.2                     Other
Definitional Provisions. (a) Unless otherwise specified therein, all terms
defined in this Agreement shall have the defined meanings when used in the
other Loan Documents or any certificate or other document made or delivered
pursuant hereto or thereto.

 

(b) As used herein
and in the other Loan Documents, and any certificate or other document made or
delivered pursuant hereto or thereto, (i) accounting terms relating to any
Group Member not defined in Section 1.1 and accounting terms partly defined in
Section 1.1, to the extent not defined, shall have the respective meanings
given to them under GAAP, (ii) the words “include”, “includes” and “including”
shall be deemed to be followed by the phrase “without limitation”, (iii) the

 

15

 

word “incur” shall be
construed to mean incur, create, issue, assume, become liable in respect of or
suffer to exist (and the words “incurred” and “incurrence” shall have
correlative meanings), (iv) the words “asset” and “property” shall be construed
to have the same meaning and effect and to refer to any and all tangible and
intangible assets and properties, including cash, Capital Stock, securities,
revenues, accounts, leasehold interests and contract rights, and (v) references
to agreements or other Contractual Obligations shall, unless otherwise
specified, be deemed to refer to such agreements or Contractual Obligations as
amended, supplemented, restated or otherwise modified from time to time.

 

(c) The words “hereof,
“herein” and “hereunder” and words of similar import, when used in this
Agreement, shall refer to this Agreement as a whole and not to any particular
provision of this Agreement, and Section, Schedule and Exhibit references are
to this Agreement unless otherwise specified.

 

(d) The meanings
given to terms defined herein shall be equally applicable to both the singular
and plural forms of such terms.

 

SECTION
2. AMOUNT AND TERMS OF COMMITMENTS

 

2.1                     Revolving
Commitments. (a) Subject to the terms and conditions hereof, each Lender
severally agrees to make revolving credit loans (the “Revolving Loans”)
to the Borrower from time to time during the Revolving Commitment Period in an
aggregate principal amount at any one time outstanding which does not exceed
the amount of such Lender’s Revolving Commitment; provided, that such
Revolving Loans shall not be due and payable until the Maturity Date. During
the Revolving Commitment Period, the Borrower may use the Revolving Commitments
by borrowing, prepaying the Revolving Loans in whole or in part, and
reborrowing, all in accordance with the terms and conditions hereof. The
Revolving Loans may from time to time be Eurodollar Loans or Fed Funds Loans,
as determined by the Borrower and notified to the Administrative Agent in
accordance with Sections 2.2 and 2.5.

 

(b) The Borrower
shall repay all outstanding Revolving Loans on the Maturity Date. On the
Commitment Termination Date, the Borrower agrees to pay a fee to the
Administrative Agent, for the account of the Lenders, in an amount equal to the
product of (x) 0.25% and (y) the principal amount of the Revolving Loans
outstanding on the Commitment Termination Date.

 

2.2                     Procedure
for Revolving Loan Borrowing. The Borrower may borrow under the Revolving
Commitments during the Revolving Commitment Period on any Business Day, provided
that the Borrower shall give the Administrative Agent irrevocable notice (which
notice must be received by the Administrative Agent prior to 2:00 P.M., New
York City time, (a) three Business Days prior to the requested Borrowing Date,
in the case of Eurodollar Loans, or (b) on the requested Borrowing Date, in the
case of Fed Funds Loans), specifying (i) the amount and Type of Revolving Loans
to be borrowed, (ii) the requested Borrowing Date and (iii) in the case of
Eurodollar Loans, the respective amounts of each such Type of Loan and the
respective lengths of the initial Interest Period therefor. Each borrowing
under the Revolving Commitments shall be in an amount equal to (x) in the case
of Fed Funds Loan, $1.0 million or a whole multiple thereof (or, if the then
aggregate Available Revolving Commitments are less than $1.0 million, such lesser
amount) and (y) in the case of Eurodollar Loans, $5.0 million or a whole
multiple of $1.0 million in excess thereof. Upon receipt of any such notice
from the Borrower, the Administrative Agent shall promptly notify each Lender
thereof. Each Lender will make the amount of its pro rata
share of each borrowing available to the Administrative Agent for the account
of the Borrower at the Funding Office prior to (a) 12:00 Noon, New York City
time, in the case of Eurodollar Loans, or (b) 2:00 P.M., New York City time, in
the case of Fed Funds Loans, on the Borrowing Date requested by the Borrower in
funds immediately available to the Administrative Agent. Such borrowing will
then be

 

16

 

made available to the Borrower
by the Administrative Agent crediting the account of the Borrower on the books
of such office with the aggregate of the amounts made available to the
Administrative Agent by the Lenders and in like funds as received by the
Administrative Agent.

 

2.3                     Facility
Fees, etc. (a) The Borrower agrees to pay to the Administrative Agent for
the account of each Lender a facility fee for the period from and including the
date hereof to the Maturity Date, computed at the Facility Fee Rate on the
amount of the Revolving Commitment of such Lender during the period for which
payment is made, payable quarterly in arrears on each Fee Payment Date,
commencing on the first such date to occur after the date hereof; provided,
that on and after the Commitment Termination Date, the facility fee shall be
payable on the amount of the outstanding Loans of such Lender and shall be
payable on demand.

 

(b) The Borrower
agrees to pay to the Administrative Agent the fees in the amounts and on the
dates as set forth in any fee agreements with the Administrative Agent and to
perform any other obligations contained therein.

 

2.4                     Termination
or Reduction of Revolving Commitments. The Borrower shall have the right,
upon not less than three Business Days’ notice to the Administrative Agent, to
terminate the Revolving Commitments or, from time to time, to reduce the amount
of the Revolving Commitments; provided that no such termination or
reduction of Revolving Commitments shall be permitted if, after giving effect
thereto and to any prepayments of the Revolving Loans made on the effective
date thereof, the Total Revolving Extensions of Credit would exceed the Total
Revolving Commitments. Any such reduction shall be in an amount equal to $1.0
million, or a whole multiple thereof, and shall reduce permanently the
Revolving Commitments then in effect.

 

2.5                     Optional
Prepayments. The Borrower may at any time and from time to time prepay the
Loans, in whole or in part, without premium or penalty, upon irrevocable notice
delivered to the Administrative Agent no later than 12:00 Noon, New York City
time, three Business Days prior thereto, in the case of Eurodollar Loans, and
no later than 12:00 Noon, New York City time, one Business Day prior thereto,
in the case of Fed Funds Loans, which notice shall specify the date and amount
of prepayment and whether the prepayment is of Eurodollar Loans or Fed Funds
Loans; provided, that if a Eurodollar Loan is prepaid on any day other
than the last day of the Interest Period applicable thereto, the Borrower shall
also pay any amounts owing pursuant to Section 2.14. Upon receipt of any such
notice the Administrative Agent shall promptly notify each relevant Lender
thereof. If any such notice is given, the amount specified in such notice shall
be due and payable on the date specified therein, together with (except in the
case of Revolving Loans that are Fed Funds Loans) accrued interest to such date
on the amount prepaid. Partial prepayments of Revolving Loans shall be in an
aggregate principal amount of $1.0 million or a whole multiple thereof.

 

2.6                     Conversion
and Continuation Options. (a) The Borrower may elect from time to time to
convert Eurodollar Loans to Fed Funds Loans by giving the Administrative Agent
prior irrevocable notice of such election no later than 11:00 A.M., New York
City time, on the Business Day preceding the proposed conversion date, provided
that any such conversion of Eurodollar Loans may only be made on the last day
of an Interest Period with respect thereto. The Borrower may elect from time to
time to convert Fed Funds Loans to Eurodollar Loans by giving the
Administrative Agent prior irrevocable notice of such election no later than
12:00 Noon, New York City time, on the third Business Day preceding the
proposed conversion date (which notice shall specify the length of the initial
Interest Period therefor), provided that no Fed Funds Loan may be
converted into a Eurodollar Loan when any Event of Default has occurred and is
continuing and the Administrative Agent or the Required Lenders have determined
in its or their sole discretion not to permit such conversions. Upon receipt of
any such notice the Administrative Agent shall promptly notify each relevant
Lender thereof.

 

17

 

(b) Any Eurodollar
Loan may be continued as such upon the expiration of the then current Interest
Period with respect thereto by the Borrower giving irrevocable notice to the
Administrative Agent, in accordance with the applicable provisions of the term “Interest
Period” set forth in Section 1.1, of the length of the next Interest Period to
be applicable to such Loans, provided that no Eurodollar Loan may be
continued as such when any Event of Default has occurred and is continuing and
the Administrative Agent has or the Required Lenders have determined in its or
their sole discretion not to permit such continuations, and provided, further,
that if the Borrower shall fail to give any required notice as described above
in this paragraph or if such continuation is not permitted pursuant to the
preceding proviso such Loans shall be automatically converted to Fed Funds
Loans on the last day of such then expiring Interest Period. Upon receipt of
any such notice the Administrative Agent shall promptly notify each relevant
Lender thereof.

 

2.7                     Limitations
on Eurodollar Tranches. Notwithstanding anything to the contrary in this
Agreement, all borrowings, conversions and continuations of Eurodollar Loans
and all selections of Interest Periods shall be in such amounts and be made
pursuant to such elections so that, (a) after giving effect thereto, the
aggregate principal amount of the Eurodollar Loans comprising each Eurodollar
Tranche shall be equal to $5.0 million or a whole multiple of $1.0 million in
excess thereof and (b) no more than ten Eurodollar Tranches shall be
outstanding at any one time.

 

2.8                     Interest
Rates and Payment Dates. (a) Each Eurodollar Loan shall bear interest for
each day during each Interest Period with respect thereto at a rate per annum
equal to the Eurodollar Rate determined for such day plus the Applicable
Margin.

 

(b) Each Fed Funds
Loan shall bear interest at a rate per annum equal to the Fed Funds Rate plus
the Applicable Margin.

 

(c) (i) If all or
a portion of the principal amount of any Loan shall not be paid when due
(whether at the stated maturity, by acceleration or otherwise), all outstanding
Loans (whether or not overdue) shall bear interest at a rate per annum equal to
the rate that would otherwise be applicable thereto pursuant to the foregoing
provisions of this Section plus 2% and (ii) if all or a portion of any
interest payable on any Loan or any facility fee or other amount payable
hereunder shall not be paid when due (whether at the stated maturity, by
acceleration or otherwise), such overdue amount shall bear interest at a rate
per annum equal to the rate then applicable to ABR Loans plus 2%, in
each case, with respect to clauses (i) and (ii) above, from the date of such
non-payment until such amount is paid in full (as well after as before
judgment).

 

(d) Interest shall
be payable in arrears on each Interest Payment Date, provided that
interest accruing pursuant to paragraph (c) of this Section shall be payable
from time to time on demand.

 

2.9                     Computation
of Interest and Fees. (a) Interest and fees payable pursuant hereto shall
be calculated on the basis of a 360-day year for the actual days elapsed,
except that, with respect to ABR Loans the rate of interest on which is
calculated on the basis of the Prime Rate, the interest thereon shall be
calculated on the basis of a 365- (or 366-, as the case may be) day year for
the actual days elapsed. The Administrative Agent shall as soon as practicable
notify the Borrower and the relevant Lenders of each determination of a
Eurodollar Rate. Any change in the interest rate on a Loan resulting from a
change in the Federal Funds Rate, the ABR or the Eurocurrency Reserve
Requirements shall become effective as of the opening of business on the day on
which such change becomes effective. The Administrative Agent shall as soon as
practicable notify the Borrower and the relevant Lenders of the effective date
and the amount of each such change in interest rate.

 

18

 

(b) Each
determination of an interest rate by the Administrative Agent pursuant to any
provision of this Agreement shall be conclusive and binding on the Borrower and
the Lenders in the absence of manifest error. The Administrative Agent shall,
at the request of the Borrower, deliver to the Borrower a statement showing the
quotations used by the Administrative Agent in determining any interest rate
pursuant to Section 2.8(a).

 

2.10               Inability to
Determine Interest Rate. If prior to the first day of any Interest Period:

 

(a)
the Administrative Agent shall have determined (which determination shall be
conclusive and binding upon the Borrower) that, by reason of circumstances
affecting the relevant market, adequate and reasonable means do not exist for
ascertaining the Eurodollar Rate for such Interest Period, or

 

(b) the
Administrative Agent shall have received notice from the Required Lenders that
the Eurodollar Rate determined or to be determined for such Interest Period
will not adequately and fairly reflect the cost to such Lenders (as
conclusively certified by such Lenders) of making or maintaining their affected
Loans during such Interest Period,

 

the Administrative Agent
shall give telecopy or telephonic notice thereof to the Borrower and the
relevant Lenders as soon as practicable thereafter. If such notice is given (x)
any Eurodollar Loans requested to be made on the first day of such Interest
Period shall be made as Fed Funds Loans, (y) any Loans that were to have been
converted on the first day of such Interest Period to Eurodollar Loans shall be
continued as Fed Funds Loans and (z) any outstanding Eurodollar Loans shall be
converted, on the last day of the then-current Interest Period, to Fed Funds
Loans. Until such notice has been withdrawn by the Administrative Agent (which
the Administrative Agent agrees to do upon the cessation of the events giving
rise to such notice), no further Eurodollar Loans shall be made or continued as
such, nor shall the Borrower have the right to convert Loans to Eurodollar
Loans.

 

2.11               Pro Rata
Treatment and Payments. (a) Each borrowing by the Borrower from the Lenders
hereunder, each payment by the Borrower on account of any facility fee and any
reduction of the Revolving Commitments of the Lenders shall be made pro rata
according to the respective Revolving Percentages of the Lenders at the time
thereof.

 

(b) Each payment
(including each prepayment) by the Borrower on account of principal of and
interest on the Revolving Loans shall be made pro rata
according to the respective outstanding principal amounts of the Revolving
Loans then held by the Lenders.

 

(c) All payments
(including prepayments) to be made by the Borrower hereunder, whether on
account of principal, interest, fees or otherwise, shall be made without setoff
or counterclaim and shall be made prior to 12:00 Noon, New York City time, on
the due date thereof to the Administrative Agent, for the account of the
Lenders, at the Funding Office, in Dollars and in immediately available funds.
The Administrative Agent shall distribute such payments to the Lenders promptly
upon receipt in like funds as received. If any payment hereunder (other than
payments on the Eurodollar Loans) becomes due and payable on a day other than a
Business Day, such payment shall be extended to the next succeeding Business
Day. If any payment on a Eurodollar Loan becomes due and payable on a day other
than a Business Day, the maturity thereof shall be extended to the next
succeeding Business Day unless the result of such extension would be to extend
such payment into another calendar month, in which event such payment shall be
made on the immediately preceding Business Day. In the case of any extension of
any payment of principal pursuant to the preceding two sentences, interest
thereon shall be payable at the then applicable rate during such extension.

 

19

 

(d) Unless the
Administrative Agent shall have been notified in writing by any Lender prior to
a borrowing that such Lender will not make the amount that would constitute its
share of such borrowing available to the Administrative Agent, the
Administrative Agent may assume that such Lender is making such amount
available to the Administrative Agent, and the Administrative Agent may, in
reliance upon such assumption, make available to the Borrower a corresponding
amount. If such amount is not made available to the Administrative Agent by the
required time on the Borrowing Date therefor, such Lender shall pay to the
Administrative Agent, on demand, such amount with interest thereon, at a rate
equal to the greater of (i) the Federal Funds Effective Rate and (ii) a rate
determined by the Administrative Agent in accordance with banking industry
rules on interbank compensation, for the period until such Lender makes such
amount immediately available to the Administrative Agent. A certificate of the
Administrative Agent submitted to any Lender with respect to any amounts owing
under this paragraph shall be conclusive in the absence of manifest error. If
such Lender’s share of such borrowing is not made available to the
Administrative Agent by such Lender within three Business Days after such
Borrowing Date, the Administrative Agent shall also be entitled to recover such
amount at the rate per annum equal to the then applicable rate on Fed Funds
Loans, on demand, from the Borrower.

 

(e) Unless the
Administrative Agent shall have been notified in writing by the Borrower prior
to the date of any payment due to be made by the Borrower hereunder that the
Borrower will not make such payment to the Administrative Agent, the
Administrative Agent may assume that the Borrower is making such payment, and
the Administrative Agent may, but shall not be required to, in reliance upon
such assumption, make available to the Lenders their respective pro rata
shares of a corresponding amount. If such payment is not made to the
Administrative Agent by the Borrower within three Business Days after such due
date, the Administrative Agent shall be entitled to recover, on demand, from
each Lender to which any amount which was made available pursuant to the
preceding sentence, such amount with interest thereon at the rate per annum
equal to the daily average Federal Funds Effective Rate. Nothing herein shall
be deemed to limit the rights of the Administrative Agent or any Lender against
the Borrower.

 

2.12.            Requirements of Law.
(a) If the adoption of or any change in any Requirement of Law or in the
interpretation or application thereof or compliance by any Lender with any
request or directive (whether or not having the force of law) from any central
bank or other Governmental or Regulatory Authority made subsequent to the date
hereof:

 

(i)
shall subject any Lender to any tax of any kind whatsoever with respect to this
Agreement or any Eurodollar Loan made by it, or change the basis of taxation of
payments to such Lender in respect thereof (except for Non-Excluded Taxes
covered by Section 2.13 and changes in the rate of tax on the overall net
income of such Lender);

 

(ii)
shall impose, modify or hold applicable any reserve, special deposit, compulsory
loan or similar requirement against assets held by, deposits or other
liabilities in or for the account of, advances, loans or other extensions of
credit by, or any other acquisition of funds by, any office of such Lender that
is not otherwise included in the determination of the Eurodollar Rate; or

 

(iii)
shall impose on such Lender any other condition affecting this Agreement or any
Eurodollar Loans made by it;

 

and the result of any of
the foregoing is to increase the cost to such Lender, by an amount that such
Lender deems to be material, of making, converting into, continuing or
maintaining Eurodollar Loans, or to reduce any amount receivable hereunder in
respect thereof, then, in any such case, the Borrower shall promptly pay such
Lender, within five Business Days after demand therefor, any additional amounts

 

20

 

necessary to compensate
such Lender for such increased cost or reduced amount receivable. If any Lender
becomes entitled to claim any additional amounts pursuant to this paragraph, it
shall promptly notify the Borrower (with a copy to the Administrative Agent) of
the event by reason of which it has become so entitled.

 

(b) If any Lender
shall have determined that the adoption of or any change in any Requirement of
Law regarding capital adequacy or in the interpretation or application thereof
or compliance by such Lender or any corporation controlling such Lender with
any request or directive regarding capital adequacy (whether or not having the
force of law) from any Governmental or Regulatory Authority made subsequent to
the date hereof shall have the effect of reducing the rate of return on such
Lender’s or such corporation’s capital as a consequence of its obligations
hereunder to a level below that which such Lender or such corporation could
have achieved but for such adoption, change or compliance (taking into
consideration such Lender’s or such corporation’s policies with respect to
capital adequacy) by an amount deemed by such Lender to be material, then from
time to time, after submission by such Lender to the Borrower (with a copy to
the Administrative Agent) of a written request therefor, the Borrower shall pay
to such Lender, within five Business Days after demand therefor, such additional
amount or amounts as will compensate such Lender or such corporation for such
reduction.

 

(c) A certificate
as to any additional amounts payable pursuant to this Section, setting forth
the relevant calculations in reasonable detail, submitted by any Lender to the
Borrower (with a copy to the Administrative Agent) shall accompany the Lender’s
written request described in clause (b) above, and shall be conclusive in the
absence of manifest error. Notwithstanding anything to the contrary in this
Section, the Borrower shall not be required to compensate a Lender pursuant to
this Section for any amounts incurred more than six months prior to the date
that such Lender notifies the Borrower of such Lender’s intention to claim
compensation therefor; provided that, if the circumstances giving rise
to such claim have a retroactive effect, then such six-month period shall be
extended to include the period of such retroactive effect. The obligations of
the Borrower pursuant to this Section shall survive the termination of this
Agreement and the payment of the Loans and all other amounts payable hereunder.

 

2.13.            Taxes. (a) All
payments made by the Borrower under this Agreement shall be made free and clear
of, and without deduction or withholding for or on account of, any present or
future income, stamp or other taxes, levies, imposts, duties, charges, fees,
deductions or withholdings, now or hereafter imposed, levied, collected,
withheld or assessed by any Governmental or Regulatory Authority, excluding net
income taxes and franchise taxes (imposed in lieu of net income taxes) imposed
on the Administrative Agent or any Lender as a result of a present or former
connection between the Administrative Agent or such Lender and the jurisdiction
of the Governmental or Regulatory Authority imposing such tax or any political
subdivision or taxing authority thereof or therein (other than any such
connection arising solely from the Administrative Agent or such Lender having
executed, delivered or performed its obligations or received a payment under,
or enforced, this Agreement or any other Loan Document). If any such
non-excluded taxes, levies, imposts, duties, charges, fees, deductions or
withholdings (“Non-Excluded Taxes”) or Other Taxes are required to be
withheld from any amounts payable to the Administrative Agent or any Lender
hereunder, the amounts so payable to the Administrative Agent or such Lender
shall be increased to the extent necessary to yield to the Administrative Agent
or such Lender (after payment of all Non-Excluded Taxes and Other Taxes)
interest or any such other amounts payable hereunder at the rates or in the
amounts specified in this Agreement, provided, however, that the
Borrower shall not be required to increase any such amounts payable to any
Lender with respect to any Non-Excluded Taxes (i) that are attributable to such
Lender’s failure to comply with the requirements of paragraph (d) or (e) of
this Section or (ii) that are United States withholding taxes imposed on
amounts payable to such Lender at the time such Lender becomes a party to this
Agreement, except to the extent that such Lender’s assignor (if any) was
entitled, at the time of

 

21

 

assignment, to receive
additional amounts from the Borrower with respect to such Non-Excluded Taxes
pursuant to this paragraph.

 

(b) In addition,
the Borrower shall pay any Other Taxes to the relevant Governmental or
Regulatory Authority in accordance with applicable law.

 

(c) Whenever any
Non-Excluded Taxes or Other Taxes are payable by the Borrower, as promptly as
possible thereafter the Borrower shall send to the Administrative Agent for its
own account or for the account of the relevant Lender, as the case may be, a
certified copy of an original official receipt received by the Borrower showing
payment thereof. If the Borrower fails to pay any Non-Excluded Taxes or Other
Taxes when due to the appropriate taxing authority (and after having had the
ability to contest in good faith the payment of such taxes) or fails to remit
to the Administrative Agent the required receipts or other required documentary
evidence, the Borrower shall indemnify the Administrative Agent and the Lenders
for any incremental taxes, interest or penalties that may become payable by the
Administrative Agent or any Lender as a result of any such failure.

 

(d) Each Lender
(or Transferee) that is not a “U.S. Person” as defined in Section 7701(a)(30)
of the Code (a “Non-U.S. Lender”) shall deliver to the Borrower and the
Administrative Agent (or, in the case of a Participant, to the Lender from
which the related participation shall have been purchased) two copies of either
U.S. Internal Revenue Service Form W-8BEN or Form W-8ECI, or, in the case of a
Non-U.S. Lender claiming exemption from U.S. federal withholding tax under
Section 871(h) or 881(c) of the Code with respect to payments of “portfolio
interest”, a statement substantially in the form of Exhibit G and a Form
W-8BEN, or any subsequent versions thereof or successors thereto, properly
completed and duly executed by such Non-U.S. Lender claiming complete exemption
from, or a reduced rate of, U.S. federal withholding tax on all payments by the
Borrower under this Agreement and the other Loan Documents. Such forms shall be
delivered by each Non-U.S. Lender on or before the date it becomes a party to
this Agreement (or, in the case of any Participant, on or before the date such
Participant purchases the related participation). In addition, each Non-U.S.
Lender shall deliver such forms promptly upon the obsolescence or invalidity of
any form previously delivered by such Non-U.S. Lender. Each Non-U.S. Lender
shall promptly notify the Borrower at any time it determines that it is no
longer in a position to provide any previously delivered certificate to the
Borrower (or any other form of certification adopted by the U.S. taxing
authorities for such purpose). Notwithstanding any other provision of this
paragraph, a Non-U.S. Lender shall not be required to deliver any form pursuant
to this paragraph that such Non-U.S. Lender is not legally able to deliver.

 

(e) A Lender that
is entitled to an exemption from or reduction of non-U.S. withholding tax under
the law of the jurisdiction in which the Borrower is located, or any treaty to
which such jurisdiction is a party, with respect to payments under this
Agreement shall deliver to the Borrower (with a copy to the Administrative
Agent), at the time or times prescribed by applicable law or reasonably
requested by the Borrower, such properly completed and executed documentation
prescribed by applicable law as will permit such payments to be made without
withholding or at a reduced rate, provided that such Lender is legally
entitled to complete, execute and deliver such documentation and in such Lender’s
judgment such completion, execution or submission would not materially
prejudice the legal position of such Lender.

 

(f) If the
Administrative Agent or any Lender determines in its reasonable judgment that
it has received a refund of any Non-Excluded Taxes or Other Taxes as to which
it has been indemnified by the Borrower or with respect to which the Borrower
has paid additional amounts pursuant to this Section 2.13, it shall pay over
such refund to the Borrower (but only to the extent of indemnity payments made,
or additional amounts paid, by the Borrower under this Section 2.13 with
respect to the Non-Excluded Taxes or Other Taxes giving rise to such refund),
net of all out-of-pocket expenses of the

 

22

 

Administrative Agent or
such Lender and without interest (other than any interest paid by the relevant
Governmental or Regulatory Authority with respect to such refund); provided,
that the Borrower, upon the request of the Administrative Agent or such Lender,
agrees to repay the amount paid over to the Borrower (plus any penalties,
interest or other charges imposed by the relevant Governmental or Regulatory
Authority) to the Administrative Agent or such Lender in the event the
Administrative Agent or such Lender is required to repay such refund to such
Governmental or Regulatory Authority. This paragraph shall not be construed to
require the Administrative Agent or any Lender to make available its tax
returns (or any other information relating to its taxes which it deems confidential)
to the Borrower or any other Person.

 

(g) The agreements
in this Section shall survive the termination of this Agreement and the payment
of the Loans and all other amounts payable hereunder.

 

2.14               Indemnity.
The Borrower agrees to indemnify each Lender for, and to hold each Lender
harmless from, any loss or expense that such Lender may sustain or incur as a
consequence of (a) default by the Borrower in making a borrowing of, conversion
into or continuation of Eurodollar Loans after the Borrower has given a notice
requesting the same in accordance with the provisions of this Agreement, (b)
default by the Borrower in making any prepayment of or conversion from
Eurodollar Loans after the Borrower has given a notice thereof in accordance
with the provisions of this Agreement or (c) the making of a prepayment of
Eurodollar Loans on a day that is not the last day of an Interest Period with
respect thereto. Such indemnification may include an amount equal to the
excess, if any, of (i) the amount of interest that would have accrued on the
amount so prepaid, or not so borrowed, converted or continued, for the period
from the date of such prepayment or of such failure to borrow, convert or
continue to the last day of such Interest Period (or, in the case of a failure
to borrow, convert or continue, the Interest Period that would have commenced
on the date of such failure) in each case at the applicable rate of interest
for such Loans provided for herein (excluding, however, the Applicable Margin
included therein, if any) over (ii) the amount of interest (as
reasonably determined by such Lender) that would have accrued to such Lender on
such amount by placing such amount on deposit for a comparable period with
leading banks in the interbank eurodollar market. A certificate as to any
amounts payable pursuant to this Section submitted to the Borrower by any
Lender shall be conclusive in the absence of manifest error. This covenant
shall not survive the termination of this Agreement and the payment of the
Loans and all other amounts payable hereunder unless a certificate as to any
amounts payable pursuant to this Section shall be submitted to the Borrower by
the relevant Lender within 30 days of the termination hereof.

 

2.15               Change of
Lending Office. Each Lender agrees that, upon the occurrence of any event
giving rise to the operation of Section 2.12 or 2.13(a) with respect to such
Lender, it will, if requested by the Borrower, use reasonable efforts (subject
to overall policy considerations of such Lender) to designate another lending
office for any Loans affected by such event with the object of avoiding the
consequences of such event; provided, that such designation is made on
terms that, in the reasonable judgment of such Lender, cause such Lender and
its lending office(s) to suffer no economic, legal or regulatory disadvantage,
and provided, further, that nothing in this Section shall affect
or postpone any of the obligations of the Borrower or the rights of any Lender
pursuant to Section 2.12 or 2.13(a).

 

2.16               Replacement of
Lenders. The Borrower shall be permitted to replace any Lender that (a)
requests reimbursement for amounts owing pursuant to Section 2.12 or 2.13(a),
(b) defaults in its obligation to make Loans hereunder or (c) does not continue
to fund or make any Eurodollar Loan pursuant to Section 2.10, in each case with
a replacement financial institution; provided that (i) such replacement
does not conflict with any Requirement of Law, (ii) no Event of Default shall
have occurred and be continuing at the time of such replacement, (iii) prior to
any such replacement, such Lender shall

 

23

 

have taken no action
under Section 2.15 that eliminates the continued need for payment of amounts
owing pursuant to Section 2.12 or 2.13(a), (iv) the replacement financial
institution shall purchase, at par, all Loans and other amounts owing to such
replaced Lender on or prior to the date of replacement, (v) the Borrower shall
be liable to such replaced Lender under Section 2.14 if any Eurodollar Loan
owing to such replaced Lender shall be purchased other than on the last day of
the Interest Period relating thereto, (vi) the replacement financial
institution shall be reasonably satisfactory to the Administrative Agent (whose
consent to such replacement financial institution shall not be unreasonably
withheld), (vii) the replaced Lender shall be obligated to make such
replacement in accordance with the provisions of Section 9.6, (viii) until such
time as such replacement shall be consummated, the Borrower shall pay all
additional amounts (if any) required pursuant to Section 2.12 or 2.13(a), as
the case may be, and (ix) any such replacement shall not be deemed to be a
waiver of any rights that the Borrower, the Administrative Agent or any other
Lender shall have against the replaced Lender.

 

2.17               Increase in
Revolving Commitments. The Borrower may, at any time by notice to the
Administrative Agent, propose an increase in the Revolving Commitments (each
such proposed increase being a “Commitment Increase”) either by having a
Lender increase its Revolving Commitment then in effect (each an “Increasing
Lender”) or by adding as a Lender with a new Revolving Commitment which is
not then a Lender hereunder (each an “Assuming Lender”) (with, in the
case of any Commitment Increase provided by an Assuming Lender, the approval of
the Administrative Agent, which consent shall not be unreasonably withheld),
which notice shall specify the name of each Increasing Lender and/or Assuming
Lender, as applicable, the amount of the Commitment Increase and the portion
thereof being assumed by each such Increasing Lender or Assuming Lender, and
the date on which such Commitment Increase is to be effective (the “Commitment
Increase Date”) (which shall be a Business Day at least three Business Days
after delivery of such notice and 30 days prior to the Commitment Termination
Date); provided, that:

 

(a)
immediately after giving effect to any Commitment Increase, the Total Revolving
Commitments hereunder shall not exceed $500.0 million;

 

(b) no
Default or Event of Default shall have occurred and be continuing on the
relevant Commitment Increase Date or shall result from any Commitment Increase;

 

(c)
the Administrative Agent shall have received (i) a copy of the resolutions, in
form and substance reasonably satisfactory to the Administrative Agent, of the
managing members of the Borrower authorizing the borrowings contemplated
pursuant to such increase, certified by the Secretary or an Assistant Secretary
of the Borrower and (ii) from any Assuming Lender, any administrative
information reasonably requested from the Administrative Agent; and

 

(d)
the representations and warranties contained in Section 3, and in each of the
other Loan Documents, are complete and correct in all material respects, as if
made on and as of such date (or, if any such representation or warranty is
expressly stated to have been made as of a specific date, as of such specific
date).

 

Each Commitment Increase
(and the increase of the Revolving Commitment of each Increasing Lender and/or
the new Revolving Commitment of each Assuming Lender, as applicable, resulting
therefrom) shall become effective as of the relevant Commitment Increase Date
upon receipt by the Administrative Agent, on or prior to 11:00 a.m., New York
City time, on such Commitment Increase Date, of (A) a certificate of a duly
authorized officer of the Borrower stating that the conditions with respect to
such Commitment Increase under this Section 2.17 have been satisfied and (B) an
agreement, in form and substance reasonably satisfactory to the Borrower and
the Administrative Agent, pursuant to which, effective as of such Commitment
Increase Date, the Revolving Commitment of each such Increasing

 

24

 

Lender shall be increased
and/or each such Assuming Lender shall undertake a Revolving Commitment, duly
executed by such Increasing Lender or Assuming Lender, as the case may be, and
the Borrower and acknowledged by each Person for whom consent is required. Upon
the Administrative Agent’s receipt of a fully executed agreement from each
Increasing Lender and/or Assuming Lender referred to in clause (B) above,
together with the certificate referred to in clause (A) above, the
Administrative Agent shall record the information contained in each such
agreement in the Register and give prompt notice of the relevant Commitment
Increase to the Borrower and the Lenders (including, if applicable, each
Assuming Lender). On each Commitment Increase Date, in the event Revolving
Loans are then outstanding and unless it is decided to use a separate mechanism
as agreed to by the Administrative Agent, (i) each relevant Increasing Lender
and Assuming Lender shall make available to the Administrative Agent such
amounts in immediately available funds as such Administrative Agent shall
determine, for the benefit of the other relevant Lenders, as being required in
order to cause, after giving effect to such increase and the application of
such amounts to make payments to such other relevant Lenders, the Revolving
Loans to be held ratably by all Lenders in accordance with their respective
Revolving Commitments, (ii) the Borrower shall be deemed to have prepaid and
reborrowed all outstanding Revolving Loans as of such Commitment Increase Date
(with such borrowing to consist of the Revolving Loans, with related Interest
Periods if applicable, specified in a notice delivered by the Borrower in
accordance with the requirements of Section 2.2) and (iii) the Borrower shall
pay to each Lender receiving a prepayment the amounts, if any, payable under
Section 2.14 as a result of such prepayment.

 

SECTION
3. REPRESENTATIONS AND WARRANTIES

 

To induce the
Administrative Agent and the Lenders to enter into this Agreement and to make
the Loans, the Borrower hereby represents and warrants to the Administrative
Agent and each Lender that:

 

3.1                     Financial
Condition. The audited consolidated balance sheets of the Borrower and its
Subsidiaries and the audited consolidated balance sheet of each Principal
Subsidiary as at December 31, 2003, December 31, 2004 and December 31, 2005,
and the related consolidated statements of income and of cash flows for the
fiscal years ended on such dates, reported on by and accompanied by an
unqualified report from Deloitte & Touche LLP and BDO Visura (or an
affiliate thereof), as applicable, present fairly in all material respects the
consolidated financial condition of the Borrower and its Subsidiaries or of
such Principal Subsidiary, as applicable, as at such date, and the consolidated
results of such Persons’ or Person’s operations and its consolidated cash flows
for the respective fiscal years then ended. The unaudited consolidated balance
sheet of the Borrower and its Subsidiaries and the unaudited consolidated
balance sheet of each Principal Subsidiary as at March 31, 2006, and the
related unaudited consolidated statements of income and cash flows for the
three-month period ended on such date, present fairly in all material respects
the consolidated financial condition of the Borrower and its Subsidiaries or of
such Principal Subsidiary, as applicable, as at such date, and the consolidated
results of such Persons’ or Person’s operations and its consolidated cash flows
for the three-month period then ended (subject to normal year-end audit
adjustments and the absence of footnote disclosure). All such financial
statements, including the related schedules, have been prepared in accordance
with GAAP applied consistently throughout the periods involved (except as
approved by the aforementioned firm of accountants and disclosed therein). No
Group Member has any material (a)(i) Guarantee Obligations, (ii) contingent
liabilities or (iii) liabilities for taxes or (b) long-term leases, or unusual
forward or long-term commitments (including any interest rate or foreign
currency swap or exchange transaction, or other derivatives-related
obligations) except those that (x) are incurred in the ordinary course of
business, (y) would not reasonably be expected to result in a Material Adverse
Effect or (z) are reflected in the most recent financial statements referred to
in this paragraph. During the period from December 31, 2005 to

 

25

 

and including the date
hereof, there has been no Disposition other than in the ordinary course of
business by any Group Member of any material part of its business or property.

 

3.2                     No Change.
Since December 31, 2005, there has been no development or event that has had or
would reasonably be expected to have a Material Adverse Effect.

 

3.3                     Existence;
Compliance with Law. Each Material Group Member (a) is duly organized,
validly existing and in good standing under the laws of the jurisdiction of its
organization, (b) has the power and authority, and the legal right, to own and
operate its property, to lease the property it operates as lessee and to
conduct the business in which it is currently engaged, (c) is duly qualified as
a foreign corporation or other organization and in good standing under the laws
of each jurisdiction where its ownership, lease or operation of property or the
conduct of its business requires such qualification and (d) is in compliance
with all Requirements of Law, the certificate of incorporation, by-laws or
other organizational or governing documents of such Material Group Member
except, in the case of clause (c) and (d) above, to the extent that the failure
to comply therewith would not, in the aggregate, reasonably be expected to have
a Material Adverse Effect.

 

3.4                     Power;
Authorization; Enforceable Obligations. Each Loan Party has the power and
authority, and the legal right, to make, deliver and perform the Loan Documents
to which it is a party and, in the case of the Borrower, to obtain extensions
of credit hereunder. Each Loan Party has taken all necessary organizational
action to authorize the execution, delivery and performance of the Loan
Documents to which it is a party and, in the case of the Borrower, to authorize
the extensions of credit on the terms and conditions of this Agreement. No
consent or authorization of, filing with, notice to or other act by or in
respect of, any Governmental or Regulatory Authority or any other Person is
required in connection with the extensions of credit hereunder or with the
execution, delivery, performance, validity or enforceability of this Agreement
or any of the Loan Documents, except (i) consents, authorizations, filings and
notices described in Schedule 3.4, which consents, authorizations, filings and
notices have been obtained or made and are in full force and effect, (ii) the
filings referred to in Section 3.18 or (iii) such other consents,
authorizations, filings and notices the failure to receive or make would not
reasonably be expected to have a Material Adverse Effect. Each Loan Document
has been duly executed and delivered on behalf of each Loan Party party
thereto. This Agreement constitutes, and each other Loan Document upon
execution will constitute, a legal, valid and binding obligation of each Loan
Party party thereto, enforceable against each such Loan Party in accordance
with its terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
the enforcement of creditors’ rights generally and by general equitable
principles (whether enforcement is sought by proceedings in equity or at law).

 

3.5                     No Legal
Bar. The execution, delivery and performance of this Agreement and the
other Loan Documents, the borrowings hereunder and the use of the proceeds
thereof will not violate any Requirement of Law, the certificate of
incorporation, by-laws or other organizational or governing documents of any
Group Member or any Contractual Obligation of any Group Member, except where
such violation would not reasonably be expected to have a Material Adverse
Effect, and will not result in, or require, the creation or imposition of any
material Lien on any of their respective properties or revenues pursuant to any
Requirement of Law or any material Contractual Obligation (other than the Liens
created by the Security Documents). No such violation of a material Requirement
of Law is known to the Borrower. Each Group Member is in compliance with any
Requirement of Law applicable to such Group Member, except where the failure to
comply would not reasonably be expected to have a Material Adverse Effect.

 

3.6                     Litigation.
No litigation, investigation or proceeding of or before any arbitrator or
Governmental or Regulatory Authority is pending or, to the knowledge of the
Borrower, threatened by

 

26

 

or against any Group
Member or against any of their respective properties or revenues (a) with
respect to the validity, enforceability or binding effect of any of the Loan
Documents or any of the transactions contemplated hereby or thereby, or (b)
that would reasonably be expected to have a Material Adverse Effect.

 

3.7                     No Default.
Each Group Member is in compliance with its material Contractual Obligations,
except where the failure to comply would not reasonably be expected to have a
Material Adverse Effect. No Default or Event of Default has occurred and is
continuing.

 

3.8                     Ownership
of Property; Liens. Each Group Member has title in fee simple to, or a
valid leasehold interest in, all its real property, and good title to, or a
valid leasehold interest in, all its other property, except in each case as
would not reasonably be expected to have a Material Adverse Effect, and none of
such property is subject to any Lien except as permitted by Section 6.3 or as
permitted pursuant to the Security Documents.

 

3.9                     Intellectual
Property. Each Material Group Member owns, or is licensed to use, the
Intellectual Property used in the conduct of its business as currently
conducted; no claim has been asserted in writing and is pending by any Person
challenging or questioning the use by any Material Group Member of any
Intellectual Property used in the business of such Material Group Member or the
validity or effectiveness of any Intellectual Property, nor does the Borrower
know of any valid basis for any such claim; and to the knowledge of the
Borrower, the use of Intellectual Property in the business of each Material
Group Member does not infringe on the rights of any Person in any respect,
except, in each case set forth above, as would not reasonably be expected to
have a Material Adverse Effect.

 

3.10               Taxes. Each
Group Member has filed or caused to be filed all Federal and all material state
and other tax returns that are required to be filed and has paid all taxes
shown to be due and payable on said returns or on any assessments made against
it or any of its property and all other taxes, fees or other charges imposed on
it or any of its property by any Governmental or Regulatory Authority other
than (a) any the amount or validity of which are currently being contested in
good faith by appropriate proceedings and with respect to which reserves in
conformity with GAAP have been provided on the books of the relevant Group
Member or (b) except in the case of filing consolidated Federal tax returns, to
the extent that the failure to do so would not reasonably be expected to result
in a Material Adverse Effect. To the knowledge of the Borrower, no material tax
lien has been filed and no claim is being asserted with respect to any such
tax, fee or other charge.

 

3.11               Federal
Regulations. (a) No part of the proceeds of any Loans, and no other
extensions of credit hereunder, will be used (a) for “buying” or “carrying” any
“margin stock” within the respective meanings of each of the quoted terms under
Regulation U as now and from time to time hereafter in effect for any purpose
that violates the provisions of the Regulations of the Board or (b) for any
purpose that violates the provisions of the Regulations of the Board. If
requested by any Lender or the Administrative Agent, the Borrower will furnish
to the Administrative Agent and each Lender a statement to the foregoing effect
in conformity with the requirements of FR Form G-3 or FR Form U-l, as
applicable, referred to in Regulation U.

 

(b) Each domestic
Broker-Dealer Subsidiary is a broker and dealer subject to the provisions of
Regulation T of the Board. Each domestic Broker-Dealer Subsidiary maintains
procedures and internal controls reasonably designed to ensure that such
domestic Broker-Dealer Subsidiary does not extend or maintain credit to or for
its customers other than in accordance with the provisions of Regulation T, and
members of each domestic Broker-Dealer Subsidiary regularly supervise its
activities and the activities of members and employees of such domestic
Broker-Dealer Subsidiary to insure that such domestic Broker-Dealer Subsidiary
does not extend or maintain credit to or for its customers other

 

27

 

than in accordance with
the provisions of Regulation T, except for occasional inadvertent failures to
comply with Regulation T in connection with transactions which are not material
either in number or amount.

 

3.12               ERISA.
Neither a Reportable Event nor an “accumulated funding deficiency” (within the
meaning of Section 412 of the Code or Section 302 of ERISA) has occurred during
the five-year period prior to the date on which this representation is made or
deemed made with respect to any Plan, and each Plan has complied in all
material respects with the applicable provisions of ERISA and the Code. No
termination of a Single Employer Plan has occurred, and no Lien in favor of the
PBGC or a Plan has arisen, during such five-year period. The present value of all
accrued benefits under each Single Employer Plan (based on those assumptions
used to fund such Plans) did not, as of the last annual valuation date prior to
the date on which this representation is made or deemed made, exceed the value
of the assets of such Plan allocable to such accrued benefits by a material
amount. Neither the Borrower nor any Commonly Controlled Entity has had a
complete or partial withdrawal from any Multiemployer Plan that has resulted or
would reasonably be expected to result in a material liability under ERISA, and
neither the Borrower nor any Commonly Controlled Entity would become subject to
any material liability under ERISA if the Borrower or any such Commonly
Controlled Entity were to withdraw completely from all Multiemployer Plans as
of the valuation date most closely preceding the date on which this
representation is made or deemed made. No such Multiemployer Plan is in
Reorganization or Insolvent.

 

3.13               Membership in
NASD; CFTC; Registration, etc. Each Broker-Dealer Subsidiary that (a) is a
Domestic Subsidiary is a member in good standing of the NASD and/or the NYSE,
and/or the Eurex US and any other applicable Governmental or Regulatory
Authority, is duly registered as a broker- dealer with the SEC and any other
applicable Governmental or Regulatory Authority and in each state in which the
conduct of its business requires such registration, is registered as futures
commission merchant with the CFTC and any other applicable Governmental or
Regulatory Authority and is not an “investment company”, or a company “controlled”
by an “investment company”, within the meaning of the Investment Company Act of
1940, as amended and (b) is not a Domestic Subsidiary is duly registered as a
broker-dealer and/or a futures commission merchant (or the local equivalent of
either) with the applicable Governmental or Regulatory Authority, in each case.
No Loan Party is subject to regulation under any Requirement of Law (other than
Regulation X of the Board) that materially limits its ability to incur
Indebtedness.

 

3.14               Subsidiaries.
Except as disclosed to the Administrative Agent by the Borrower in writing from
time to time after the Closing Date, (a) Schedule 3.14 sets forth the name and
jurisdiction of incorporation of each Subsidiary and, as to each such
Subsidiary, the percentage of each class of Capital Stock owned by any Loan
Party and (b) there are no outstanding subscriptions, options, warrants, calls,
rights or other agreements or commitments (other than stock options granted to
employees or directors, directors’ qualifying shares and agreements relating to
members’ interests) of any nature relating to any Capital Stock of the Borrower
or any Subsidiary, except as created by the Loan Documents.

 

3.15               Use of Proceeds.
The proceeds of the Revolving Loans shall be used for working capital and other
general corporate purposes of the Borrower and its Subsidiaries, including for
funding through subordinated loans the activities of the Broker-Dealer
Subsidiaries which subordinated loans will comply with 12 C.F.R.
§221.5(c)(9)(ii) or will otherwise comply with Regulation U of the Board.

 

3.16               Environmental
Matters. Except as, in the aggregate, would not reasonably be expected to
have a Material Adverse Effect:

 

28

 

(a) the facilities
and properties owned, leased or operated by any Group Member (the “Properties”)
do not contain, and have not previously contained, any Materials of
Environmental Concern in amounts or concentrations or under circumstances that
constitute or constituted a violation of, or would be reasonably likely to give
rise to liability under, any Environmental Law;

 

(b) no Group
Member has received or is aware of any notice of any material violation,
alleged violation, non-compliance, liability or potential liability regarding
environmental matters or compliance with Environmental Laws with regard to any
of the Properties or the business operated by any Group Member (the “Business”),
nor does the Borrower have knowledge or reason to believe that any such notice
will be received or is being threatened;

 

(c) Materials of
Environmental Concern have not been transported or disposed of from the
Properties in violation of, or in a manner or to a location that would be
reasonably likely to give rise to liability under, any Environmental Law, nor
have any Materials of Environmental Concern been generated, treated, stored or
disposed of at, on or under any of the Properties in violation of, or in a
manner that would be reasonably likely to give rise to any material liability
under, any applicable Environmental Law;

 

(d) no judicial
proceeding or governmental or administrative action is pending or, to the
knowledge of the Borrower, threatened, under any Environmental Law to which any
Group Member is or will be named as a party with respect to the Properties or
the Business, nor are there any consent decrees or other decrees, consent
orders, administrative orders or other orders, or other administrative or
judicial requirements outstanding under any Environmental Law with respect to
the Properties or the Business;

 

(e) there has been
no release or threat of release of Materials of Environmental Concern at or
from the Properties, or arising from or related to the operations of any Group
Member in connection with the Properties or otherwise in connection with the
Business, in violation of or in amounts or in a manner that would be reasonably
likely to give rise to any material liability under Environmental Laws;

 

(f) the Properties
and all operations at the Properties are in compliance, and have in the last
five years been in compliance, with all applicable Environmental Laws, and
there is no material contamination at, under or about the Properties or
violation of any Environmental Law with respect to the Properties or the
Business; and

 

(g) no Group
Member has assumed any material liability of any other Person under
Environmental Laws.

 

3.17     Accuracy of Information, etc. No
statement or information contained in this Agreement, any other Loan Document,
the Confidential Information Memorandum or any other document, certificate or
statement furnished by or on behalf of any Loan Party to the Administrative
Agent or the Lenders, or any of them, for use in connection with the
transactions contemplated by this Agreement or the other Loan Documents, taken
as a whole, contained as of the date such statement, information, document or
certificate was so furnished (or, in the case of the Confidential Information
Memorandum, as of the date of this Agreement), any untrue statement of a material
fact or omitted to state a material fact necessary to make the statements
contained herein or therein not misleading in light of the circumstances under
which such statements were made; provided, that the projections and pro
forma financial information contained in the materials referenced above are
based upon good faith estimates and assumptions believed by management of the
Borrower to be reasonable at the time made, it being recognized by the Lenders
that such financial information as it relates to future events is not to be
viewed as fact and that actual results during the period or periods covered by
such financial information may differ from the projected results set forth
therein by a material amount.

 

29

 

3.18     Security Documents. Each of the
Guarantee and Collateral Agreement and the Pledge and Collateral Agency
Agreement is effective to create in favor of the Administrative Agent or the
Collateral Agent, as applicable, for the benefit of the Lenders or the Secured
Parties, as applicable, a legal, valid and enforceable security interest in the
Collateral described therein and proceeds thereof. In the case of the Pledged
Stock described in the Pledge and Collateral Agency Agreement, when certificates
representing such Pledged Stock are delivered to the Collateral Agent (assuming
continued possession by the Collateral Agent of such certificates and that such
certificates are located in the United States) and, in the case of the
Collateral described in the Guarantee and Collateral Agreement in which a
security interest may be perfected by the filing of Uniform Commercial Code
financing statements, when financing statements and other filings specified on
Schedule 3.18(a) in appropriate form are filed in the offices specified on
Schedule 3.18(a) along with the payment of applicable filing fees, each of the
Guarantee and Collateral Agreement and Pledge and Collateral Agency Agreement
shall constitute a fully perfected Lien on, and security interest in, all
right, title and interest of the Loan Parties in the Collateral described
therein and the proceeds thereof, as security for the Obligations (as defined
in the Guarantee and Collateral Agreement or Pledge and Collateral Agency
Agreement, as applicable), in each case prior and superior in right to any
other Person (except subject to Liens permitted by Section 6.3 or as permitted
pursuant to the Security Documents).

 

SECTION
4. CONDITIONS PRECEDENT

 

4.1       Conditions to Initial Extension of
Credit. The agreement of each Lender to make the initial extension of
credit requested to be made by it is subject to the satisfaction, prior to or
concurrently with the making of such extension of credit on the Closing Date,
of the following conditions precedent (if not otherwise waived):

 

(a) Credit
Agreement: Guarantee and Collateral Agreement; Pledge and Collateral Agency
Agreement. The Administrative Agent shall have received (i) this Agreement,
executed and delivered by the Administrative Agent, the Borrower and each
Person listed on Schedule 1.1 A, (ii) the Guarantee and Collateral Agreement,
executed and delivered by the Borrower and each Guarantor, (iii) an
Acknowledgement and Consent in the form attached to the Guarantee and
Collateral Agreement, executed and delivered by each Issuer (as defined
therein), if any, that is not a Loan Party or a Regulated Entity, (iv) the
Pledge and Collateral Agency Agreement, executed and delivered by the Borrower
and each Guarantor and (v) an Acknowledgment and Consent in the form attached
to the Pledge and Collateral Agency Agreement, executed and delivered by each
Issuer (as defined therein), if any, that is not a Loan Party or a Regulated
Entity.

 

(b) Approvals.
The Loan Parties will use their commercially reasonable efforts to obtain any
material governmental and third party approvals necessary in connection with
the transactions contemplated hereby, and all applicable waiting periods shall
have expired without any action being taken or threatened by any competent
authority that would restrain, prevent or otherwise impose adverse conditions
on the financing contemplated hereby.

 

(c) Financial
Statements. The Lenders shall have received (i) audited consolidated
financial statements of the Borrower and its Subsidiaries and audited consolidated
financial statements of each Principal Subsidiary for the December 31, 2003,
2004 and 2005 fiscal years and (ii) unaudited interim consolidated financial
statements of the Borrower and its Subsidiaries and unaudited consolidated
financial statements of each Principal Subsidiary for each fiscal quarter ended
after the date of the latest applicable financial statements delivered pursuant
to clause (i) of this paragraph as to which such financial statements are
available, and such financial statements shall not, in the reasonable judgment
of the Lenders, reflect any material adverse

 

30

 

change in the
consolidated financial condition of the Borrower and its Subsidiaries or of
such Principal Subsidiary, as applicable, as reflected in the financial
statements or projections contained in the Confidential Information Memorandum.

 

(d) Lien
Searches. The Administrative Agent shall have received the results of a
recent lien search in each of the jurisdictions where assets of the Loan
Parties are located, and such search shall reveal no liens on any of the assets
of the Loan Parties except for liens permitted by Section 6.3 or as permitted
pursuant to the Security Documents, or liens discharged on or prior to the
Closing Date pursuant to documentation satisfactory to the Administrative
Agent.

 

(e) Fees.
The Lenders and the Administrative Agent shall have received all fees required
to be paid, and all expenses for which invoices have been presented (including
the reasonable fees and expenses of legal counsel), on or before the Closing
Date. All such amounts will be paid with proceeds of Loans made on the Closing
Date and will be reflected in the funding instructions given by the Borrower to
the Administrative Agent on or before the Closing Date.

 

(f) Closing
Certificate; Certified Certificate of Incorporation; Good Standing Certificates.
The Administrative Agent shall have received (i) a certificate of each Loan
Party, dated the Closing Date, substantially in the form of Exhibit D, with
appropriate insertions and attachments, including the certificate of
incorporation of each Loan Party that is a corporation certified by the
relevant authority of the jurisdiction of organization of such Loan Party, and
(ii) a long form good standing certificate for each Loan Party from its
jurisdiction of organization.

 

(g) Legal
Opinion. The Administrative Agent shall have received the legal opinion of
Dechert LLP, counsel to the Borrower and its Subsidiaries, substantially in the
form of Exhibit F.

 

(h) S&P
Rating. The Borrower shall have received a counterparty credit rating from
S&P of BBB- or better.

 

(i) Pledged
Stock; Stock Powers; Pledged Notes. (i) The Collateral Agent shall have
received the certificates (if any) representing the shares of Capital Stock of
Subsidiaries pledged pursuant to the Pledge and Collateral Agency Agreement,
together with an undated stock power for each such certificate executed in
blank by a duly authorized officer of the pledgor thereof and (ii) the Administrative
Agent shall have received each promissory note (if any) pledged to the
Administrative Agent pursuant to the Guarantee and Collateral Agreement
endorsed (without recourse) in blank (or accompanied by an executed transfer
form in blank) by the pledgor thereof.

 

(j) Filings,
Registrations and Recordings. Each document (including any Uniform
Commercial Code financing statement) required by the Security Documents or
under law or reasonably requested by the Administrative Agent to be filed,
registered or recorded in order to create in favor of the Administrative Agent,
for the benefit of the Lenders, a perfected Lien on the Collateral described
therein, prior and superior in right to any other Person (other than with
respect to Liens expressly permitted by Section 6.3 or as permitted pursuant to
the Security Documents), shall be in proper form for filing, registration or
recordation.

 

4.2       Conditions to Each Extension of Credit.
The agreement of each Lender to make any extension of credit requested to be
made by it on any date (including its initial extension of credit) is subject
to the satisfaction of the following conditions precedent:

 

(a) Representations
and Warranties. Each of the representations and warranties made by any Loan
Party in or pursuant to the Loan Documents shall be true and correct in all
material

 

31

 

respects on and as of
such date as if made on and as of such date or, if such representation and
warranty relates to a specific date, then as of such date.

 

(b) No
Default. No Default or Event of Default shall have occurred and be
continuing on such date or after giving effect to the extensions of credit
requested to be made on such date.

 

Each borrowing by the
Borrower hereunder shall constitute a representation and warranty by the
Borrower as of the date of such extension of credit that the conditions
contained in this Section 4.2 have been satisfied.

 

SECTION
5. AFFIRMATIVE COVENANTS

 

The Borrower
hereby agrees that, so long as the Revolving Commitments remain in effect or
any Loan or other amount is owing to any Lender or the Administrative Agent
hereunder, the Borrower shall and, to the extent applicable, shall cause each
of its Subsidiaries to:

 

5.1       Financial Statements. Furnish to
the Administrative Agent and each Lender:

 

(a) as
soon as available, but in any event before the earlier of (i) 120 days after
the end of each fiscal year of the Borrower or (ii) the date on which the
Borrower is required to file with the SEC such financial statements (to the
extent applicable), a copy of the audited consolidated balance sheet of the
Borrower and its consolidated Subsidiaries and the audited consolidated balance
sheet for each Principal Subsidiary as at the end of such year and the related
audited consolidated statements of income and of cash flows for such year,
reported on without a “going concern” or like qualification or exception, or
qualification arising out of the scope of the audit, by Deloitte & Touche
LLP or BDO Visura (or an affiliate thereof), as applicable, or other
independent certified public accountants of nationally recognized standing; and

 

(b) as
soon as available, but in any event not later than the earlier of (i) 45 days
after the end of each of the first three quarterly periods of each fiscal year
of the Borrower or (ii) the date on which the Borrower is required to file with
the SEC such financial statements (to the extent applicable), the unaudited
consolidated balance sheet of the Borrower and its consolidated Subsidiaries
and the unaudited consolidated balance sheet for each Principal Subsidiary as
at the end of such quarter and the related unaudited consolidated statements of
income and of cash flows for such quarter and the portion of the fiscal year
through the end of such quarter, certified by a Responsible Officer as being
fairly stated in all material respects (subject to normal year-end audit
adjustments and the omission of footnotes).

 

All such financial
statements shall fairly present in all material respects the financial
condition and results of operations of the Borrower and its consolidated
Subsidiaries or of such Principal Subsidiary, as applicable, and shall be
prepared in reasonable detail and in accordance with GAAP applied (except as
approved by such accountants or officer, as the case may be, and disclosed in
reasonable detail therein) consistently throughout the periods reflected
therein and with prior periods. Documents required to be delivered pursuant to
this Section 5.1 (to the extent any such documents are included in materials
otherwise filed with the SEC to the extent applicable) may be delivered by
posting such documents electronically with notice to the Administrative Agent
and each Lender thereof and if so posted, shall be deemed to have been delivered
on the date on which such documents are posted on the Borrower’s behalf on
IntraLinks/IntraAgency or another relevant website, if any, to which each
Lender and the Administrative Agent have access (whether a commercial,
third-party website or whether sponsored by the Administrative Agent).

 

32

 

5.2       Certificates; Other Information.
Furnish to the Administrative Agent (who will distribute to each Lender):

 

(a)
concurrently with the delivery of any financial statements pursuant to Section
5.1, (i) a certificate of a Responsible Officer stating that such Responsible
Officer has no knowledge of any Default or Event of Default except as specified
in such certificate and (ii) in the case of quarterly or annual financial
statements, (x) a Compliance Certificate containing all information and
calculations necessary for determining compliance by each Group Member with the
provisions of this Agreement referred to therein as of the last day of the
fiscal quarter or fiscal year of the Borrower, as the case may be, and (y) to
the extent not previously disclosed to the Administrative Agent, a description
of any change in the jurisdiction of organization of any Loan Party and a list
of any material Intellectual Property acquired by any Loan Party since the date
of the most recent report delivered pursuant to this clause (y) (or, in the
case of the first such report so delivered, since the Closing Date);

 

(b)
(i) within ten days after the same are sent, copies of all financial statements
and reports that the Borrower sends to the public holders of any class of its
debt securities or public equity securities and (ii) within ten days after the
same are filed, copies of all financial statements and reports that the
Borrower may make to, or file with, the SEC or any other domestic or foreign
Governmental or Regulatory Authority; and

 

(c)
promptly, such additional financial and other information as any Lender may
from time to time reasonably request through the Administrative Agent.

 

5.3       Payment of Obligations. Pay,
discharge or otherwise satisfy at or before maturity or before they become
delinquent, as the case may be, all its obligations of whatever nature, except
where (a) the amount or validity thereof is currently being contested in good
faith by appropriate proceedings and reserves in conformity with GAAP with
respect thereto have been provided on the books of the relevant Group Member or
(b) such failure would not reasonably be expected to have a Material Adverse
Effect.

 

5.4       Maintenance of Existence; Compliance.
(a)(i) Preserve, renew and keep in full force and effect its organizational
existence and (ii) take all reasonable action to maintain all rights,
privileges (including, in the case of each Broker-Dealer Subsidiary, its
registration as a broker-dealer with the SEC and its membership with the NASD
and/or its registration as a futures commission merchant with the CFTC (or any
local equivalent thereof)) and franchises necessary or desirable in the normal
conduct of its business, except, in each case, as otherwise permitted by
Section 6.4 or Section 6.5(e) and except, in the case of clause (ii) above, to
the extent that failure to do so would not reasonably be expected to have a
Material Adverse Effect; and (b) comply with all Contractual Obligations and
Requirements of Law except to the extent that failure to comply therewith would
not, in the aggregate, reasonably be expected to have a Material Adverse
Effect.

 

5.5       Maintenance of Property; Insurance,
(a) Keep all property useful and necessary in its business in good working
order and condition, ordinary wear and tear excepted, except where the failure
to do so would not reasonably be expected to have a Material Adverse Effect and
(b) maintain insurance on its premises with financially sound and reputable
insurance companies in a commercially reasonable amount and with commercially
reasonable terms and conditions.

 

5.6       Inspection of Property; Books and
Records; Discussions, (a) Keep proper books of records and account in which
complete entries in conformity with GAAP and all Requirements of Law shall be
made of all material dealings and transactions in relation to its business and
activities and (b)

 

33

 

upon reasonable notice at
reasonable times during normal business hours permit representatives of any
Lender to visit and inspect any of its properties and examine and make
abstracts from any of its books and records at any reasonable time and as often
as may reasonably be desired and to discuss the business, operations,
properties and financial and other condition of the Group Members with officers
and employees of the Group Members and with their independent certified public
accountants; provided that a representative of the Group Members shall
be present at any such discussion.

 

5.7       Notices. Promptly give notice to
the Administrative Agent and each Lender of:

 

(a)
the occurrence of any Default or Event of Default;

 

(b)
any litigation or proceeding affecting any Group Member (i) in which the amount
involved is $25.0 million or more and not covered by insurance or (ii) which
relates to any Loan Document;

 

(c)
the following events, as soon as possible and in any event within 30 days after
the Borrower knows of: (i) the occurrence of any Reportable Event with respect
to any Plan, a failure to make any required contribution to a Plan, the
creation of any Lien in favor of the PBGC or a Plan or any withdrawal from, or
the termination, Reorganization or Insolvency of, any Multiemployer Plan or
(ii) the institution of proceedings or the taking of any other action by the
PBGC or the Borrower or any Commonly Controlled Entity or any Multiemployer
Plan with respect to the withdrawal from, or the termination, Reorganization or
Insolvency of, any Plan;

 

(d)
(i) any Lien (other than Liens permitted under Section 6.3) on any of the
Collateral which would adversely affect the ability of the Administrative Agent
to exercise any of its remedies under the Security Documents or (ii) of the
occurrence of any other event which could reasonably be expected to have a
material adverse effect on the aggregate value of the Collateral or on the
security interests of the Lenders under the Security Documents; and

 

(e)
any development or event that, in the reasonable judgment of the Borrower, has
had or would reasonably be expected to have a Material Adverse Effect.

 

Each notice pursuant to
this Section 5.7 shall be accompanied by a statement of a Responsible Officer
setting forth details of the occurrence referred to therein and stating what
action the relevant Group Member proposes to take with respect thereto.

 

5.8       Additional Collateral, etc. (a)
With respect to any property acquired after the Closing Date by any Loan Party
(other than (x) property excluded from Collateral by the Security Documents,
(y) any property described in paragraph (b) or (c) below and (z) any property
subject to a Lien permitted by Section 6.3(c), (d), (f), (g), (j) and (m) or as
permitted pursuant to the Security Documents) as to which the Administrative
Agent, for the benefit of the Lenders, or the Collateral Agent, for the benefit
of the Secured Parties, as applicable, does not have a perfected Lien (“Excluded
Assets”), promptly (i) execute and deliver to the Administrative Agent
and/or the Collateral Agent such amendments to the Guarantee and Collateral
Agreement, the Pledge and the Collateral Agency Agreement or such other
documents as the Administrative Agent or the Collateral Agent reasonably deems
necessary to grant to the Administrative Agent, for the benefit of the Lenders,
or the Collateral Agent, for the benefit of the Secured Parties, as applicable,
a security interest in such property and (ii) take all actions necessary to
grant to the Administrative Agent, for the benefit of the Lenders, or the
Collateral Agent, for the benefit of the Secured Parties, as applicable, a
perfected first priority security interest in such property (subject to Liens
permitted by Section 6.3 or as permitted pursuant to the Security Documents),
including the filing of Uniform Commercial Code financing statements in such

 

34

 

jurisdictions as may be
required by the Guarantee and Collateral Agreement or the Pledge and Collateral
Agency Agreement or by law or as may be reasonably requested by the
Administrative Agent or the Collateral Agent, as applicable.

 

(b) With respect
to any new Material Subsidiary (other than a Foreign Subsidiary or an Excluded
Regulated Subsidiary) created or acquired after the Closing Date by any Loan
Party (which, for the purposes of this paragraph (b), shall include any
existing Material Subsidiary that is a directly Wholly Owned Subsidiary of one
or more Loan Parties that ceases to be a Foreign Subsidiary or an Excluded
Regulated Subsidiary and shall include any immaterial Subsidiary that becomes a
Material Subsidiary), promptly (i) execute and deliver to the Collateral Agent
such amendments to the Pledge and Collateral Agency Agreement as the Collateral
Agent reasonably deems necessary to grant to the Collateral Agent, for the
benefit of the Secured Parties, a perfected first priority security interest in
the Capital Stock of such new Material Subsidiary that is owned by any Loan
Party (subject to Liens permitted by Section 6.3 or as permitted pursuant to
the Security Documents), (ii) deliver to the Collateral Agent the certificates
representing such Capital Stock, together with undated stock powers, in blank,
executed and delivered by a duly authorized officer of the relevant Loan Party,
(iii) except in the case of an Excluded Regulated Subsidiary, cause such new
Material Subsidiary (A) to become a party to each of the Guarantee and
Collateral Agreement and the Pledge and Collateral Agency Agreement, (B) to
take such actions necessary to grant to the Administrative Agent, for the
benefit of the Lenders, and the Collateral Agent, for the benefit of the
Secured Parties, as applicable, a perfected first priority security interest in
the Collateral described in each of the Guarantee and Collateral Agreement and
the Pledge and Collateral Agency Agreement with respect to such new Material
Subsidiary, other than any Excluded Assets and subject to Liens permitted by
Section 6.3 or as permitted pursuant to the Security Documents, including the
filing of Uniform Commercial Code financing statements in such jurisdictions as
may be required by the Guarantee and Collateral Agreement or the Pledge and
Collateral Agency Agreement or by law or as may be reasonably requested by the
Administrative Agent or the Collateral Agent, as applicable, and (C) to deliver
to the Administrative Agent a certificate of such Material Subsidiary,
substantially in the form of Exhibit D, with appropriate insertions and
attachments, and (iv) if reasonably requested by the Administrative Agent or
the Collateral Agent, deliver to the Administrative Agent or the Collateral
Agent, as applicable, legal opinions relating to the matters described above,
which opinions shall be in form and substance, and from counsel, reasonably
satisfactory to the Administrative Agent or the Collateral Agent, as
applicable.

 

(c) With respect
to any new Foreign Subsidiary created or acquired after the Closing Date by any
Loan Party, promptly (i) execute and deliver to the Collateral Agent such
amendments to the Pledge and Collateral Agency Agreement as the Collateral
Agent deems necessary to grant to the Collateral Agent, for the benefit of the
Secured Parties, a perfected first priority security interest in the Capital
Stock of such new Foreign Subsidiary that is owned by any such Loan Party (provided
that in no event shall more than 65% of the total outstanding voting Capital
Stock of any such new first tier Foreign Subsidiary owned by a domestic Loan
Party be required to be so pledged and excluding the Capital Stock of any other
Foreign Subsidiary) (subject to Liens permitted by Section 6.3 or as permitted
pursuant to the Security Documents), (ii) deliver to the Collateral Agent the
certificates representing such Capital Stock, together with undated stock
powers, in blank, executed and delivered by a duly authorized officer of the
relevant Loan Party, and take such other action as may be necessary to perfect
the Collateral Agent’s security interest therein, and (iii) if reasonably
requested by the Collateral Agent, deliver to the Collateral Agent legal
opinions relating to the matters described above, which opinions shall be in
form and substance, and from counsel, reasonably satisfactory to the Collateral
Agent.

 

5.9       Compliance with Regulatory Requirements.
The Borrower will, and will cause each Broker-Dealer Subsidiary to comply with
all rules and regulations of the SEC and any other applicable domestic or
foreign Governmental or Regulatory Authority applicable to it (including such

 

35

 

rules and regulations
dealing with net capital or other applicable requirements), except where the
failure to comply would not reasonably be expected to have a Material Adverse
Effect.

 

5.10     Post-Closing Covenant. The Borrower
will deliver (i) the Pledged Stock (as defined in the Pledge and Collateral
Agency Agreement) set forth on Schedule 2 of the Pledge and Collateral Agency
Agreement to the Collateral Agent within 30 days of the Closing Date and (ii)
the Pledged Notes (as defined in the Guarantee and Collateral Agreement) set
forth on Schedule 2 of the Guarantee and Collateral Agreement within five
Business Days of the Closing Date.

 

SECTION
6. NEGATIVE COVENANTS

 

The Borrower
hereby agrees that, so long as the Revolving Commitments remain in effect or
any Loan or other amount is owing to any Lender or the Administrative Agent
hereunder, the Borrower shall not, and (to the extent applicable) shall not
permit any of its Subsidiaries to, directly or indirectly:

 

6.1       Financial Condition Covenants.

 

(a) Consolidated
Shareholders’ Equity. Permit Consolidated Shareholders’ Equity at any time
to be less than the sum of (i) $1,523,000,000 and (ii) 25% of cumulative
Consolidated Net Income for each fiscal quarter of the Borrower (beginning with
the fiscal quarter ending March 31, 2006) for which Consolidated Net Income is
positive.

 

(b) Consolidated
Capitalization Ratio. Permit the Consolidated Capitalization Ratio at any
time to be greater than 0.30 to 1.00.

 

(c) Minimum
Liquidity Ratio. Permit the ratio (such ratio, the “Liquidity Ratio”)
of (x) unencumbered marketable securities (after taking into account financing
haircuts) and other liquid financial assets (including excess exchange and
clearing deposits) of the Borrower and its Subsidiaries to (y) the sum of (i)
unsecured liabilities of the Broker-Dealer Subsidiaries and (ii) unsecured
liabilities of the Borrower and each of its Subsidiaries (other than
Broker-Dealer Subsidiaries) with maturities of one year or less at any time to be
less than 1.0 to 1.0.

 

(d) Consolidated
Total Debt to Regulatory Capital. Permit the ratio of (x) Consolidated
Total Debt to (y) Consolidated Regulatory Capital at any time to be greater
than 0.35 to 1.00.

 

6.2       Indebtedness. Create, issue,
incur, assume, become liable in respect of or suffer to exist any Indebtedness,
except:

 

(a)
Indebtedness of any Loan Party pursuant to any Loan Document;

 

(b)
Indebtedness of the Borrower to any Subsidiary or of any Subsidiary to the
Borrower or any other Subsidiary that in either case shall not have been
transferred or pledged to any third party to the extent that such Indebtedness
corresponds to any Investment permitted by Section 6.7(f) or (g);

 

(c)
Indebtedness of any Person that shall have become a Subsidiary after the
Closing Date; provided that such Indebtedness shall have existed at the
time such Person becomes a Subsidiary and shall not have been created in
contemplation of or in connection with such Person becoming a Subsidiary, and
any refinancings, refundings, renewals or extensions thereof (without
increasing the principal amount or shortening the maturity thereof);

 

36

 

(d)
Guarantee Obligations incurred in the ordinary course of business by the
Borrower or any of its Subsidiaries of obligations of (i) any Guarantor or any
Broker-Dealer Subsidiary or (ii) any Subsidiary in respect of Indebtedness
permitted under clause (k) below;

 

(e)
Indebtedness outstanding on the date hereof and listed on Schedule 6.2(e) and
any refinancings, refundings, renewals or extensions thereof (without
increasing the principal amount or shortening the maturity thereof);

 

(f)
Indebtedness (including, without limitation, Capital Lease Obligations) secured
by Liens permitted by Section 6.3(g) incurred to finance the acquisition,
construction or improvement of any fixed or capital assets, including Capital
Lease Obligations, and any Indebtedness assumed or incurred in connection with
the acquisition of any such assets or secured by a Lien on any such assets
prior to the acquisition thereof, and extensions, renewals and replacements of
any such Indebtedness that do not increase the outstanding principal amount
thereof; provided that such Indebtedness is incurred prior to or within 180
days after such acquisition or the completion of such construction or
improvement;

 

(g)
Indebtedness incurred by Broker-Dealer Subsidiaries under customary terms in
the ordinary course of business;

 

(h)
Subordinated Indebtedness of the Borrower;

 

(i)
Guarantee Obligations of the Borrower and its Subsidiaries in respect of
Indebtedness or liabilities of the Borrower and its Subsidiaries so long as the
incurrence or existence of such Indebtedness or liabilities is or was permitted
under this Agreement; provided that a Group Member that is not a Loan
Party may not incur such Guarantee Obligations in respect of Indebtedness of a
Loan Party unless such Group Member shall become a Guarantor hereunder; provided
further that any Guarantee Obligations of Subordinated Indebtedness
shall also be subordinated;

 

(j)
IBG Notes;

 

(k)
Indebtedness of Subsidiaries in an aggregate principal amount not to exceed, at
the time of incurrence of any such Indebtedness and after giving effect
thereto, when taken together with the principal amount of all Indebtedness then
outstanding under clause (ii) of Section 6.2(l), the product of clauses (a) and
(b) thereof as of such date; and

 

(l)
Indebtedness of the Borrower so long as any incurrence thereof does not (i)
result in pro  forma noncompliance with the financial covenants
set forth in Section 6.1 and (ii) so long as any such Indebtedness maturing on
or before the six-month anniversary of the Maturity Date does not exceed, when
taken together with the aggregate principal amount of all Indebtedness then
outstanding under clause (k) above, at the time of incurrence of any such
Indebtedness and after giving effect thereto, the product of (a) 0.05 and (b)
Consolidated Shareholders’ Equity as of such date;

 

provided
that, in the case of any Indebtedness incurred under clauses (j), (k) or
(l)(ii) above, on the date of the incurrence thereof and after giving effect
thereto, the aggregate principal amount of all Indebtedness then outstanding
under clauses (j), (k) and (l)(ii) above does not exceed the product of (a)
0.25 and (b) Consolidated Shareholders’ Equity as of such date. For the
avoidance of doubt, the financial covenants in Section 6.1 shall apply, and
compliance therewith shall be calculated to include as appropriate all
Indebtedness incurred as permitted under this Section 6.2.

 

37

 

6.3       Liens. Create, incur, assume or
suffer to exist any Lien upon any of its property, whether now owned or
hereafter acquired, except:

 

(a)
Liens for taxes not yet due or that are being contested in good faith by
appropriate proceedings, provided that adequate reserves with respect
thereto are maintained on the books of the Borrower or its Subsidiaries, as the
case may be, in conformity with GAAP;

 

(b)
carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s or other like
Liens arising in the ordinary course of business that are not overdue for a
period of more than 30 days or that are being contested in good faith by
appropriate proceedings;

 

(c)
pledges or deposits in connection with workers’ compensation, unemployment
insurance and other social security legislation;

 

(d)
deposits to secure the performance of bids, trade contracts (other than for
borrowed money), leases, statutory obligations, surety and appeal bonds,
performance bonds and other obligations of a like nature incurred in the
ordinary course of business;

 

(e)
easements, rights-of-way, restrictions and other similar encumbrances incurred
in the ordinary course of business that, in the aggregate, are not substantial
in amount and that do not in any case materially detract from the value of the
property subject thereto or materially interfere with the ordinary conduct of
the business of the Borrower or any of its Subsidiaries;

 

(f)
Liens in existence on the date hereof listed on Schedule 6.3(f), securing
Indebtedness permitted by Section 6.2(e), and Liens incurred to secure any
Indebtedness permitted under Section 6.2(e) to refinance such Indebtedness; provided
that no such Lien is spread to cover any additional property after the Closing
Date and that the principal amount of Indebtedness secured thereby is not
increased;

 

(g)
Liens securing Indebtedness of the Borrower or any other Subsidiary incurred
pursuant to Section 6.2(f), provided that (i) such Liens do not at any
time encumber any property other than the property financed by such
Indebtedness and (ii) the principal amount of Indebtedness secured thereby is
not increased;

 

(h)
Liens created pursuant to the Security Documents;

 

(i)
any interest or title of a lessor under any lease entered into by the Borrower
or any other Subsidiary in the ordinary course of its business and covering
only the assets so leased;

 

(j)
the filing of financing statements as a precautionary measure in connection
with operating leases or the assignment of goods;

 

(k)
any Lien existing on any property or asset prior to the acquisition thereof by
the Borrower or any Subsidiary or existing on any property or asset of any
Person that becomes a Subsidiary after the date hereof prior to the time such
Person becomes a Subsidiary; provided that (i) such Lien is not created in
contemplation of or in connection with such acquisition or such Person becoming
a Subsidiary, as the case may be, (ii) such Lien shall not apply to any other
property or assets of the Borrower or any Subsidiary and (iii) such Lien shall
secure only those obligations which it secures on the date of such acquisition
or the date such Person becomes a Subsidiary, as the case may be, and
extensions, renewals and replacements thereof that do not increase the
outstanding principal amount thereof as of such date;

 

38

 

(l)
Liens created, incurred or assumed by any Broker-Dealer Subsidiary in the
ordinary course of business upon assets owned by such Subsidiary or held for
such Subsidiary’s account to secure Indebtedness and other liabilities incurred
under Section 6.2(g);

 

(m)
any extension, renewal or replacement (or successive extensions, renewals or
replacements) in whole or in part of any Lien referred to in clauses (f), (g),
(k) and (l); provided that (i) the obligations secured thereby shall be
limited to the obligations secured by the Lien so extended, renewed or replaced
(and, to the extent provided in the foregoing clauses, extensions, renewals and
replacements thereof) and (ii) such Lien shall be limited to all or a part of
the assets that secured the Lien so extended, renewed or replaced; and

 

(n)
other Liens securing obligations in an amount not to exceed $50 million at any
time outstanding.

 

6.4       Fundamental Changes. Merge,
consolidate or amalgamate, or liquidate, wind up or dissolve itself (or suffer
any liquidation or dissolution), or Dispose of all or substantially all of its
property or business, except that:

 

(a)
the Borrower or any of its Subsidiaries may merge or consolidate with any
Person that is in the same or similar line of business (or primarily engages in
the same or similar business activities); provided that (A) in the case
of any merger or consolidation involving the Borrower, (x) the Borrower shall
be the continuing or surviving corporation or (y) if the Person formed by or
surviving any such merger or consolidation is not the Borrower (any such
Person, the “Successor Company”), (i) the Successor Company shall be an
entity organized or existing under the laws of the United States, any state
thereof, the District of Columbia or any territory thereof, (ii) the Successor
Company shall expressly assume all the obligations of the Borrower under this
Agreement and the other Loan Documents to which the Borrower is a party
pursuant to a supplement hereto or thereto in form reasonably satisfactory to
the Administrative Agent and by virtue of such merger or consolidation and such
assumption shall have become the “Borrower” hereunder, (iii) after giving
effect to such merger or consolidation, no Default or Event of Default shall
have occurred or be continuing, (iv) each Guarantor, unless it is the other
party to such merger or consolidation, shall have by a supplement to the
Guarantee and Collateral Agreement confirmed that its Guarantee and other
obligations thereunder shall apply to the Successor Company’s obligations under
this Agreement and (v) the Borrower shall have delivered to the Administrative
Agent an officer’s certificate and an opinion of counsel, each stating that
such merger or consolidation and such supplement to this Agreement or any Loan
Document comply with this Agreement; (B) in the case of any merger or
consolidation involving a Material Group Member, the surviving entity shall be
a Material Group Member; (C) in the case of any merger or consolidation
involving a Broker-Dealer Subsidiary, the surviving entity shall be a
Broker-Dealer Subsidiary and shall have only Indebtedness permitted to be incurred
under Section 6.2 (other than by virtue of paragraph (c) thereof) by such
Broker-Dealer Subsidiary; and (D) any merger or consolidation effected under
this Section 6.4(a) with a Person that is not the Borrower or one of its
Subsidiaries shall be treated for all purposes hereof as an acquisition of such
Person and shall be subject to the limitations of Section 6.7 (with the value
of such Person at the time of such merger or consolidation being deemed to be
the consideration paid for the acquisition thereof, if in such merger or
consolidation no consideration, in the form of Capital Stock of the Borrower or
otherwise, is paid for such acquisition);

 

(b)
any Subsidiary of the Borrower may Dispose of all or substantially all of its
assets (i) to the Borrower or any Subsidiary; provided that (A) in the
case of any such Disposition by any Material Group Member, the transferee
entity shall be a Material Group Member and shall have

 

39

 

only Indebtedness
permitted to be incurred under Section 6.2 (by such Material Group Member and
(B) in the case of any such Disposition by any Broker-Dealer Subsidiary, the
transferee entity shall be a Broker-Dealer Subsidiary and shall have only
Indebtedness permitted to be incurred under Section 6.2 by such Broker-Dealer
Subsidiary (ii) to the Borrower or any Guarantor (upon voluntary liquidation or
otherwise) or (iii) pursuant to a Disposition permitted by Section 6.5;

 

(c)
any Investment expressly permitted by Section 6.7 may be structured as a
merger, consolidation or amalgamation; and

 

(d)
any Subsidiary of the Borrower may liquidate or dissolve if (i) the Borrower
determines in good faith that such liquidation or dissolution is in the best
interests of the Borrower and is not materially disadvantageous to the Lenders
and (ii) in the case of a liquidation or dissolution of a Broker-Dealer
Subsidiary, such liquidation or dissolution is into another Broker-Dealer
Subsidiary that shall have only Indebtedness permitted to be incurred under
Section 6.2 (other than by virtue of paragraph (c) thereof) by such
Broker-Dealer Subsidiary.

 

6.5       Disposition of Property. Dispose
of any of its property, whether now owned or hereafter acquired, or, in the
case of any Subsidiary, issue or sell any shares of such Subsidiary’s Capital
Stock to any Person, except:

 

(a)
the Disposition of obsolete or worn out property in the ordinary course of
business;

 

(b)
the sale of inventory, cash, Cash Equivalents and other assets (including
securities and derivatives) in the ordinary course of business;

 

(c)
Dispositions permitted by clauses (i) or (ii) of Section 6.4(b) and Investments
permitted by Sections 6.7(f), (g) and (h);

 

(d)
the sale or issuance of the Capital Stock of (i) any Subsidiary to the Borrower
or any Guarantor or (ii) any Subsidiary that is not a Guarantor to any other
Subsidiary that is not a Guarantor;

 

(e)
(i) the sale by any Loan Party of its property or assets to another Loan Party,
(ii) the sale by any Subsidiary (other than a Broker-Dealer Subsidiary) that is
not a Guarantor of its property or assets to another Subsidiary that is not a
Guarantor and (iii) the sale by a Broker-Dealer Subsidiary of its property or
assets to another Broker-Dealer Subsidiary that shall not have any Indebtedness
not permitted to be incurred under Section 6.2.

 

(f)
the Disposition of other property having a fair market value not to exceed, in
the aggregate for any fiscal year of the Borrower, the product of (a) 0.10 and
(b) Consolidated Shareholders’ Equity as of such date; provided that any
such Disposition to a Person that is not a Group Member is for consideration at
least equivalent to the fair market value of such other property; and provided,
further, that each such Disposition would not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect.

 

6.6       Restricted Payments. Declare or
pay any dividend (other than dividends payable solely in common stock of the
Person making such dividend) on, or make any payment on account of, or set
apart assets for a sinking or other analogous fund for, the purchase,
redemption, defeasance, retirement or other acquisition of, any Capital Stock
of any Group Member, whether now or hereafter outstanding, or make any other
distribution in respect thereof, either directly or indirectly, whether in cash
or property or in obligations of any Group Member (collectively, “Restricted
Payments”), except that:

 

40

 

(a)
any Subsidiary may make Restricted Payments to the Borrower or any Subsidiary
which is a holder of the Capital Stock of such Subsidiary;

 

(b)
any Subsidiary may declare and pay dividends ratably with respect to its
Capital Stock;

 

(c)
the Borrower may make Restricted Payments pursuant to and in accordance with
stock option plans or other benefit plans for management or employees of the
Borrower and its Subsidiaries;

 

(d)
the Borrower may make Restricted Payments at any time so long as (i) no Default
or Event Default shall have occurred and be continuing and (ii) at the time of
the payment of such Restricted Payments, and after giving effect thereto, the
Borrower shall be in pro forma compliance with the covenants set forth in
Section 6.1; and

 

(e)
the Borrower or any Subsidiary having one or more holders of its Capital Stock
that are not the Borrower or any other Subsidiary may make Restricted Payments
at such times and in such amounts as may reasonably be deemed necessary in
respect of any then-current income taxes that become due and payable by direct
or indirect holders of its Capital Stock, to the extent such taxes are directly
attributable to the income of the Borrower and its Subsidiaries, or the Capital
Stock of such Subsidiary and its Subsidiaries, as the case may be.

 

6.7       Investments. Make any advance,
loan, extension of credit (by way of guaranty or otherwise) or capital
contribution to, or purchase any Capital Stock, bonds, notes, debentures or
other debt securities of, or any assets constituting a business unit of, or
make any other investment in, any Person (all of the foregoing, “Investments”),
except:

 

(a)
extensions of trade credit in the ordinary course of business;

 

(b)
investments in cash and Cash Equivalents (and other Investments in the ordinary
course of a broker-dealer business);

 

(c)
Guarantee Obligations permitted by Section 6.2;

 

(d)
loans and advances to employees of any Group Member in the ordinary course of
business (including for travel, entertainment and relocation expenses) in an
aggregate amount for all Group Members not to exceed $20.0 million at any one
time outstanding;

 

(e)
other Investments constituting Permitted Acquisitions; provided that the
aggregate amount of the consideration (including Capital Stock) paid in
connection with all Permitted Acquisitions shall not be in excess of the
product of (i) 0.50 and (ii) Consolidated Shareholders’ Equity as of such date;

 

(f)
(i) intercompany Investments by (A) any Group Member in the Borrower or any
Subsidiary that, prior to or concurrently with such investment, is or becomes a
Guarantor, (B) any Subsidiary that is not a Guarantor in any other Subsidiary
that is not a Guarantor and (C) the Borrower in any Wholly Owned Subsidiary, provided
that no proceeds of any Loan shall be used to make equity investments in, or
capital contributions to, such Subsidiary and (ii) the intercompany Investments
existing on the date hereof and listed on Schedule 6.7(f) and any refinancings,
refundings, renewals or extensions thereof;

 

41

 

(g)
any Investment by any Loan Party or a Broker-Dealer Subsidiary in a
Broker-Dealer Subsidiary, or any Investment by any Loan Party or a
Broker-Dealer Subsidiary in the form of the purchase by such Loan Party of any
Investment held by a Broker-Dealer Subsidiary, in either case with the intent
of permitting such Broker-Dealer Subsidiary to comply with applicable capital
requirements on a temporary basis and in the ordinary course of business;

 

(h)
Investments in Swap Agreements (it being understood that the Borrower shall
not, and shall not permit any of its Subsidiaries to, enter into any Swap
Agreements that effectively substitute for transactions prohibited hereby);

 

(i)
Investments received in settlement of amounts due to the Borrower or any
Subsidiary effected in the ordinary course of business; and

 

(j) in
addition to Investments otherwise expressly permitted by this Section,
Investments by the Borrower or any of its Subsidiaries in an aggregate amount
(valued at cost) not to exceed at any time outstanding an amount equal to the
product of (i) 0.05 and (ii) Consolidated Shareholders’ Equity as of such date.

 

6.8       Transactions with Affiliates.
Enter into any transaction, including any purchase, sale, lease or exchange of
property, the rendering of any service or the payment of any management,
advisory or similar fees, with any Affiliate (other than the Borrower or
Subsidiary) unless such transaction is (a) (i) otherwise permitted under this
Agreement, (ii) in the ordinary course of business of the relevant Group Member,
and (iii) upon fair and reasonable terms no less favorable to the relevant
Group Member than it would obtain in a comparable arm’s length transaction with
a Person that is not an Affiliate or (b) a Restricted Payment permitted by
Section 6.6.

 

6.9       Changes in Fiscal Periods. Permit
the fiscal year of the Borrower to end on a day other than December 31 or
change the Borrower’s method of determining fiscal quarters.

 

6.10     Lines of Business. Enter into any
business, either directly or through any Subsidiary, except for those
businesses in which the Borrower and its Subsidiaries are engaged on the
Closing Date and businesses similar, ancillary, complementary or otherwise
reasonably related thereto or that are a reasonable extension, development or
expansion thereof.

 

SECTION
7. EVENTS OF DEFAULT

 

If any of the
following events shall occur and be continuing:

 

(a)
the Borrower shall fail to pay any principal of any Loan when due in accordance
with the terms hereof; or the Borrower shall fail to pay any interest on any
Loan or any other amount payable hereunder or under any other Loan Document,
within five days after any such interest or other amount becomes due in
accordance with the terms hereof; or

 

(b)
any representation or warranty made or deemed made by any Loan Party herein or
in any other Loan Document or that is contained in any certificate (including
any certification of any financial statement) furnished by it at any time under
or in connection with this Agreement or any such other Loan Document shall
prove to have been inaccurate in any material respect on or as of the date made
or deemed made; or

 

(c)
any Loan Party shall default in the observance or performance of any agreement
contained in Section 6 hereof; or

 

42

 

(d)
any Loan Party shall default in the observance or performance of any other
agreement contained in this Agreement or any other Loan Document (other than as
provided in paragraphs (a) through (c) of this Section), and such default shall
continue unremedied for a period of 30 days after notice to the Borrower from
the Administrative Agent or the Required Lenders; or

 

(e)
any Material Group Member shall (i) default in making any payment of any
principal of any Indebtedness (including any Guarantee Obligation, but
excluding the Loans) beyond the period of grace, if any, with respect thereto;
or (ii) default in making any payment of any interest on any such Indebtedness
beyond the period of grace, if any, provided in the instrument or agreement under
which such Indebtedness was created; or (iii) default in the observance or
performance of any other agreement or condition relating to any such
Indebtedness or contained in any instrument or agreement evidencing, securing
or relating thereto, or any other event shall occur or condition exist, in each
case the effect of which default or other event or condition is to cause, or to
permit the holder or beneficiary of such Indebtedness (or a trustee or agent on
behalf of such holder or beneficiary) to cause, with the giving of notice if
required, such Indebtedness to become due prior to its stated maturity; provided,
that a default, event or condition described in clause (i), (ii) or (iii) of
this paragraph (e) shall not at any time constitute an Event of Default unless,
at such time, one or more defaults, events or conditions of the type described
in clauses (i), (ii) and (iii) of this paragraph (e) shall have occurred and be
continuing with respect to Indebtedness the outstanding principal amount of which
exceeds in the aggregate $50.0 million; or

 

(f)
(i) any Material Group Member shall commence any case, proceeding or other
action (A) under any existing or future law of any jurisdiction, domestic or
foreign, relating to bankruptcy, insolvency, reorganization or relief of
debtors, seeking to have an order for relief entered with respect to it, or
seeking to adjudicate it a bankrupt or insolvent, or seeking reorganization,
arrangement, adjustment, winding-up, liquidation, dissolution, composition or
other relief with respect to it or its debts, or (B) seeking appointment of a
receiver, trustee, custodian, conservator or other similar official for it or
for all or any substantial part of its assets, or any Material Group Member
shall make a general assignment for the benefit of its creditors; or (ii) there
shall be commenced against any Material Group Member any case, proceeding or
other action of a nature referred to in clause (i) above that (A) results in
the entry of an order for relief or any such adjudication or appointment or (B)
remains undismissed or undischarged for a period of 60 days; or (iii) there
shall be commenced against any Material Group Member any case, proceeding or
other action seeking issuance of a warrant of attachment, execution, distraint
or similar process against all or any substantial part of its assets that
results in the entry of an order for any such relief that shall not have been
vacated, discharged, or stayed or bonded pending appeal within 60 days from the
entry thereof; or (iv) any Material Group Member shall take any action in
furtherance of, or indicating its consent to, approval of, or acquiescence in,
any of the acts set forth in clause (i), (ii), or (iii) above; or (v) any
Material Group Member shall generally not, or shall be unable to, or shall
admit in writing its inability to, pay its debts as they become due; or

 

(g)
(i) any Person shall engage in any “prohibited transaction” (as defined in
Section 406 of ERISA or Section 4975 of the Code) involving any Plan, (ii) any “accumulated
funding deficiency” (as defined in Section 302 of ERISA), whether or not
waived, shall exist with respect to any Plan or any Lien in favor of the PBGC
or a Plan shall arise on the assets of any Group Member or any Commonly
Controlled Entity, (iii) a Reportable Event shall occur with respect to, or
proceedings shall commence to have a trustee appointed, or a trustee shall be
appointed, to administer or to terminate, any Single Employer Plan, which
Reportable Event or commencement

 

43

 

of proceedings or
appointment of a trustee is, in the reasonable opinion of the Required Lenders,
likely to result in the termination of such Plan for purposes of Title IV of
ERISA, (iv) any Single Employer Plan shall terminate for purposes of Title IV
of ERISA, (v) any Group Member or any Commonly Controlled Entity shall, or in
the reasonable opinion of the Required Lenders is likely to, incur any
liability in connection with a withdrawal from, or the Insolvency or Reorganization
of, a Multiemployer Plan or (vi) any other event or condition shall occur or
exist with respect to a Plan; and in each case in clauses (i) through (vi)
above, such event or condition, together with all other such events or
conditions, if any, would reasonably be expected to have a Material Adverse
Effect; or

 

(h)
one or more judgments or decrees shall be entered against any Material Group
Member involving in the aggregate a liability (not paid or to the extent not
covered by insurance) of $50.0 million or more, and all such judgments or
decrees shall not have been vacated, discharged, stayed or bonded pending
appeal within 30 days from the entry thereof; or

 

(i)
except as expressly permitted hereunder or thereunder, any of the Security
Documents shall cease, for any reason, to be in full force and effect, or any
Loan Party shall so assert in writing, or any Lien created by any of the
Security Documents shall, with respect to a material portion of the Collateral,
cease to be enforceable or of the same effect and priority purported to be
created thereby; or

 

(j)
except as expressly permitted hereunder or thereunder, the guarantee contained
in Section 2 of the Guarantee and Collateral Agreement shall cease, for any
reason, to be in full force and effect or any Loan Party or any Affiliate of
any Loan Party shall so assert; or

 

(k)
(i) the Permitted Holders shall cease, either directly or indirectly, to hold,
vote or direct the voting of those shares of common stock or member interests,
as the case may be, of the Borrower representing the majority of the Voting
Interests in the Borrower; or (ii) the board of directors of the Borrower shall
cease to consist of a majority of Continuing Directors;

 

then, and in any such
event, (A) if such event is an Event of Default specified in clause (i) or (ii)
of paragraph (f) above with respect to the Borrower, automatically the
Revolving Commitments shall immediately terminate and the Loans (with accrued
interest thereon) and all other amounts owing under this Agreement and the
other Loan Documents shall immediately become due and payable, and (B) if such
event is any other Event of Default, either or both of the following actions
may be taken: (i) with the consent of the Required Lenders, the Administrative
Agent may, or upon the request of the Required Lenders, the Administrative
Agent shall, by notice to the Borrower declare the Revolving Commitments to be
terminated forthwith, whereupon the Revolving Commitments shall immediately
terminate; and (ii) with the consent of the Required Lenders, the
Administrative Agent may, or upon the request of the Required Lenders, the
Administrative Agent shall, by notice to the Borrower, declare the Loans (with
accrued interest thereon) and all other amounts owing under this Agreement and
the other Loan Documents to be due and payable forthwith, whereupon the same
shall immediately become due and payable. Except as expressly provided above in
this Section, presentment, demand, protest and all other notices of any kind
are hereby expressly waived by the Borrower.

 

SECTION
8. THE AGENTS

 

8.1       Appointment. (a) Each Lender
hereby irrevocably designates and appoints the Administrative Agent as the
agent of such Lender under this Agreement and the other Loan Documents, and
each such Lender irrevocably authorizes the Administrative Agent, in such
capacity, to take such action on its behalf under the provisions of this
Agreement and the other Loan Documents and to exercise

 

44

 

such powers and perform
such duties as are expressly delegated to the Administrative Agent by the terms
of this Agreement and the other Loan Documents, together with such other powers
as are reasonably incidental thereto. Notwithstanding any provision to the
contrary elsewhere in this Agreement, the Administrative Agent shall not have
any duties or responsibilities, except those expressly set forth herein, or any
fiduciary relationship with any Lender, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this
Agreement or any other Loan Document or otherwise exist against the
Administrative Agent.

 

(b) Each Lender
hereby irrevocably designates and appoints the Collateral Agent as the agent of
such Lender under the Pledge and Collateral Agreement and the other Loan
Documents, and each such Lender irrevocably authorizes the Collateral Agent, in
such capacity, to take such action on its behalf under the provisions of the
Pledge and Collateral Agreement and the other Loan Documents and to exercise
such powers and perform such duties as are expressly delegated to the
Collateral Agent by the terms of the Pledge and Collateral Agreement and the
other Loan Documents, together with such other powers as are reasonably
incidental thereto. Notwithstanding any provision to the contrary elsewhere in
the Pledge and Collateral Agreement, the Collateral Agent shall not have any
duties or responsibilities, except those expressly set forth therein, or any
fiduciary relationship with any Lender, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into the
Pledge and Collateral Agreement or any other Loan Document or otherwise exist
against the Collateral Agent. The parties hereto agree that the Collateral
Agent, in its capacity as such, shall have all the benefits, rights and
indemnification accorded the Administrative Agent as set forth in this Article
VIII to the same extent as if the provisions hereof were set forth in the
Pledge and Collateral Agreement mutatis  mutandis. The provisions
of Section 8.9 shall apply to any successor Collateral Agent, which shall be
appointed by the Secured Parties (as defined in the Pledge and Collateral
Agreement) or, in the event of the termination of this Agreement and the
payment of the Loans and all other amounts payable hereunder, the IBG Note
Holders (as defined in the Pledge and Collateral Agreement), in each case in
accordance with Section 8.9. In connection with any such resignation of the
Collateral Agent, the Collateral Agent shall assign its interest in any
financing statements filed pursuant to the Pledge and Collateral Agreement to
the successor Collateral Agent. This Section 8.1(b) shall survive the
termination of this Agreement and the payment of the Loans and all other
amounts payable hereunder.

 

8.2       Delegation of Duties. The
Administrative Agent may execute any of its duties under this Agreement and the
other Loan Documents by or through agents or attorneys-in-fact and shall be
entitled to advice of counsel concerning all matters pertaining to such duties.
The Administrative Agent shall not be responsible for the negligence or
misconduct of any agents or attorneys in-fact selected by it with reasonable
care.

 

8.3       Exculpatory Provisions. Neither
any Agent nor any of their respective officers, directors, employees, agents,
attorneys-in-fact or affiliates shall be (i) liable for any action lawfully
taken or omitted to be taken by it or such Person under or in connection with
this Agreement or any other Loan Document (except to the extent that any of the
foregoing are found by a final and nonappealable decision of a court of
competent jurisdiction to have resulted from its or such Person’s own gross
negligence or willful misconduct) or (ii) responsible in any manner to any of
the Lenders for any recitals, statements, representations or warranties made by
any Loan Party or any officer thereof contained in this Agreement or any other
Loan Document or in any certificate, report, statement or other document referred
to or provided for in, or received by the Agents under or in connection with,
this Agreement or any other Loan Document or for the value, validity,
effectiveness, genuineness, enforceability or sufficiency of this Agreement or
any other Loan Document or for any failure of any Loan Party a party thereto to
perform its obligations hereunder or thereunder. The Agents shall not be under
any obligation to any Lender to ascertain or to inquire as to the observance or
performance of any of the agreements contained in, or

 

45

 

conditions of, this
Agreement or any other Loan Document, or to inspect the properties, books or
records of any Loan Party.

 

8.4       Reliance by Administrative Agent.
The Administrative Agent shall be entitled to rely, and shall be fully
protected in relying, upon any instrument, writing, resolution, notice,
consent, certificate, affidavit, letter, telecopy, telex or teletype message,
statement, order or other document or conversation reasonably believed by it to
be genuine and correct and to have been signed, sent or made by the proper
Person or Persons and upon advice and statements of legal counsel (including
counsel to the Borrower), independent accountants and other experts selected by
the Administrative Agent. The Administrative Agent may deem and treat the payee
of any Note as the owner thereof for all purposes unless a written notice of
assignment, negotiation or transfer thereof shall have been filed with the
Administrative Agent. The Administrative Agent shall be fully justified in
failing or refusing to take any action under this Agreement or any other Loan
Document unless it shall first receive such advice or concurrence of the
Required Lenders (or, if so specified by this Agreement, all Lenders) as it
deems appropriate or it shall first be indemnified to its satisfaction by the
Lenders against any and all liability and expense that may be incurred by it by
reason of taking or continuing to take any such action. The Administrative Agent
shall in all cases be fully protected in acting, or in refraining from acting,
under this Agreement and the other Loan Documents in accordance with a request
of the Required Lenders (or, if so specified by this Agreement, all Lenders),
and such request and any action taken or failure to act pursuant thereto shall
be binding upon all the Lenders and all future holders of the Loans.

 

8.5       Notice of Default. The
Administrative Agent shall not be deemed to have knowledge or notice of the
occurrence of any Default or Event of Default unless the Administrative Agent
has received notice from a Lender or the Borrower referring to this Agreement,
describing such Default or Event of Default and stating that such notice is a “notice
of default”. In the event that the Administrative Agent receives such a notice
from the Borrower or any Lender, the Administrative Agent shall give notice
thereof to all of the other Lenders (and if not from the Borrower, to the
Borrower as well). The Administrative Agent shall take such action with respect
to such Default or Event of Default as shall be reasonably directed by the
Required Lenders (or, if so specified by this Agreement, all Lenders); provided
that unless and until the Administrative Agent shall have received such
directions, the Administrative Agent may (but shall not be obligated to) take
such action, or refrain from taking such action, with respect to such Default
or Event of Default as it shall deem advisable in the best interests of the
Lenders.

 

8.6       Non-Reliance on Agents and Other
Lenders. Each Lender expressly acknowledges that neither the Agents nor any
of their respective officers, directors, employees, agents, attorneys-in-fact
or affiliates have made any representations or warranties to it and that no act
by any Agent hereafter taken, including any review of the affairs of a Loan
Party or any affiliate of a Loan Party, shall be deemed to constitute any
representation or warranty by any Agent to any Lender. Each Lender represents
to the Agents that it has, independently and without reliance upon any Agent or
any other Lender, and based on such documents and information as it has deemed
appropriate, made its own appraisal of and investigation into the business,
operations, property, financial and other condition and creditworthiness of the
Loan Parties and their affiliates and made its own decision to make its Loans
hereunder and enter into this Agreement. Each Lender also represents that it
will, independently and without reliance upon any Agent or any other Lender, and
based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit analysis, appraisals and decisions in
taking or not taking action under this Agreement and the other Loan Documents,
and to make such investigation as it deems necessary to inform itself as to the
business, operations, property, financial and other condition and
creditworthiness of the Loan Parties and their affiliates. Except for notices,
reports and other documents expressly required to be furnished to the Lenders
by the Administrative Agent hereunder, the Administrative Agent shall not have
any duty or responsibility to provide any Lender with any credit or other
information concerning the business, operations, property, condition (financial
or

 

46

 

otherwise), prospects or
creditworthiness of any Loan Party or any affiliate of a Loan Party that may
come into the possession of the Administrative Agent or any of its officers,
directors, employees, agents, attorneys-in-fact or affiliates.

 

8.7       Indemnification. The Lenders agree
to indemnify each Agent in its capacity as such (to the extent not reimbursed
by the Borrower and without limiting the obligation of the Borrower to do so),
ratably according to their respective Aggregate Exposure Percentages in effect
on the date on which indemnification is sought under this Section (or, if
indemnification is sought after the date upon which the Revolving Commitments
shall have terminated and the Loans shall have been paid in full, ratably in
accordance with such Aggregate Exposure Percentages immediately prior to such
date), from and against any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements of any
kind whatsoever that may at any time (whether before or after the payment of
the Loans) be imposed on, incurred by or asserted against such Agent in any way
relating to or arising out of, the Revolving Commitments, this Agreement, any
of the other Loan Documents or any documents contemplated by or referred to
herein or therein or the transactions contemplated hereby or thereby or any
action taken or omitted by such Agent under or in connection with any of the
foregoing; provided that no Lender shall be liable for the payment of
any portion of such liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements that are found by a
final and nonappealable decision of a court of competent jurisdiction to have
resulted from such Agent’s gross negligence or willful misconduct. The
agreements in this Section shall survive the payment of the Loans and all other
amounts payable hereunder.

 

8.8       Agent in Its Individual Capacity.
Each Agent and its affiliates may make loans to, accept deposits from and
generally engage in any kind of business with any Loan Party as though such
Agent were not an Agent. With respect to its Loans made or renewed by it, each
Agent shall have the same rights and powers under this Agreement and the other
Loan Documents as any Lender and may exercise the same as though it were not an
Agent, and the terms “Lender” and “Lenders” shall include each Agent in its
individual capacity.

 

8.9       Successor Administrative Agent.
The Administrative Agent may resign as Administrative Agent upon 30 days’
notice to the Lenders and the Borrower. If the Administrative Agent shall
resign as Administrative Agent under this Agreement and the other Loan
Documents, then the Required Lenders shall appoint from among the Lenders a
successor agent for the Lenders, which successor agent shall (unless an Event
of Default under Section 7(a) or Section 7(f) with respect to the Borrower
shall have occurred and be continuing) be subject to approval by the Borrower
(which approval shall not be unreasonably withheld or delayed), whereupon such
successor agent shall succeed to the rights, powers and duties of the
Administrative Agent, and the term “Administrative Agent” shall mean such
successor agent effective upon such appointment and approval, and the former
Administrative Agent’s rights, powers and duties as Administrative Agent shall
be terminated, without any other or further act or deed on the part of such
former Administrative Agent or any of the parties to this Agreement or any
holders of the Loans. If no successor agent has accepted appointment as
Administrative Agent by the date that is 30 days following a retiring
Administrative Agent’s notice of resignation, the retiring Administrative Agent’s
resignation shall nevertheless thereupon become effective, and the Lenders
shall assume and perform all of the duties of the Administrative Agent
hereunder until such time, if any, as the Required Lenders appoint a successor
agent as provided for above; provided, however, that if any
collateral security is then held by the Administrative Agent on behalf of the
Lenders under any of the Loan Documents, the Administrative Agent shall
continue to hold such collateral security until such time as a successor
Administrative Agent is appointed. After any retiring Administrative Agent’s
resignation as Administrative Agent, the provisions of this Section 8 shall
inure to its benefit as to any actions taken or omitted to be taken by it while
it was Administrative Agent under this Agreement and the other Loan Documents.

 

47

 

8.10     Syndication Agent. The Syndication
Agent shall not have any duties or responsibilities hereunder in its capacity
as such.

 

8.11     Co-Syndication Agents. The Co-Syndication
Agents shall not have any duties or responsibilities hereunder in their
capacity as such.

 

SECTION
9. MISCELLANEOUS

 

9.1       Amendments and Waivers. Neither
this Agreement, any other Loan Document, nor any terms hereof or thereof may be
amended, supplemented or modified except in accordance with the provisions of
this Section 9.1. The Required Lenders and each Loan Party party to the
relevant Loan Document may, or, with the written consent of the Required
Lenders, the Administrative Agent and each Loan Party party to the relevant
Loan Document may, from time to time, (a) enter into written amendments,
supplements or modifications hereto and to the other Loan Documents for the
purpose of adding any provisions to this Agreement or the other Loan Documents or
changing in any manner the rights of the Lenders or of the Loan Parties
hereunder or thereunder or (b) waive, on such terms and conditions as the
Required Lenders or the Administrative Agent, as the case may be, may specify
in such instrument, any of the requirements of this Agreement or the other Loan
Documents or any Default or Event of Default and its consequences; provided,
however, that no such waiver and no such amendment, supplement or
modification shall (i) forgive the principal amount or extend the final
scheduled date of maturity of any Loan, reduce the stated rate of any interest
or fee payable hereunder (except in connection with the waiver of applicability
of any post-default increase in interest rates (which waiver shall be effective
with the consent of the Required Lenders)) or extend the scheduled date of any
payment thereof, or increase the amount or extend the expiration date of any
Lender’s Revolving Commitment, in each case without the written consent of each
Lender directly affected thereby; (ii) eliminate or reduce the voting rights of
any Lender under this Section 9.1 without the written consent of such Lender;
(iii) reduce any percentage specified in the definition of Required Lenders,
consent to the assignment or transfer by the Borrower of any of its rights and
obligations under this Agreement and the other Loan Documents, release all or
substantially all of the Collateral under the Guarantee and Collateral
Agreement or the Pledge and Collateral Agency Agreement or release any of the Guarantors
(or amend or modify the definitions of “Guarantor” or “Material Subsidiary”
whereby such amendment or modification would result in the release of any of
the Guarantors) from their obligations under the Guarantee and Collateral
Agreement, in each case without the written consent of all Lenders or as
otherwise expressly permitted hereunder; (iv) amend, modify or waive any
provisions in Section 2.11 (a), (b) and (c) without the written consent of each
Lender adversely affected thereby; or (v) amend, modify or waive any provision
of Section 8 without the written consent of the Administrative Agent. Any such
waiver and any such amendment, supplement or modification shall apply equally
to each of the Lenders and shall be binding upon the Loan Parties, the Lenders,
the Administrative Agent and all future holders of the Loans. In the case of
any waiver, the Loan Parties, the Lenders and the Administrative Agent shall be
restored to their former position and rights hereunder and under the other Loan
Documents, and any Default or Event of Default waived shall be deemed to be
cured and not continuing; but no such waiver shall extend to any subsequent or
other Default or Event of Default, or impair any right consequent thereon.

 

Notwithstanding
the foregoing, this Agreement may be amended (or amended and restated) with the
written consent of the Required Lenders, the Administrative Agent and the
Borrower (a) to add one or more additional credit facilities to this Agreement
and to permit the extensions of credit from time to time outstanding thereunder
and the accrued interest and fees in respect thereof to share ratably in the
benefits of this Agreement and the other Loan Documents with the Revolving
Loans and the accrued interest and fees in respect thereof and (b) to include
appropriately the Lenders holding such credit facilities in any determination
of the Required Lenders.

 

48

 

9.2       Notices. All notices, requests and
demands to or upon the respective parties hereto to be effective shall be in
writing (including by telecopy), and, unless otherwise expressly provided
herein, shall be deemed to have been duly given or made when delivered, or five
Business Days after being deposited in the mail, postage prepaid, or, in the
case of telecopy notice, when received, addressed as follows in the case of the
Borrower and the Administrative Agent, and as set forth in an administrative
questionnaire delivered to the Administrative Agent in the case of the Lenders,
or to such other address as may be hereafter notified by the respective parties
hereto:

 

 

	
  Borrower:

  	
   

  	
  Interactive Brokers
  Group LLC

  
	
   

  	
   

  	
  Two Pickwick Plaza

  
	
   

  	
   

  	
  Greenwich, CT 06830

  
	
   

  	
   

  	
  Attention: Alexander M.
  Ioffe and Paul J. Brody

  
	
   

  	
   

  	
  Telecopy: 203-618-5835

  
	
   

  	
   

  	
  Telephone: 203-618-5870

  
	
   

  	
   

  	
   

  
	
  Administrative
  Agent:

  	
   

  	
  JPMorgan Chase Bank,
  N.A.

  
	
   

  	
   

  	
  1111 Fannin Street,
  Floor 10

  
	
   

  	
   

  	
  Houston, TX 77002

  
	
   

  	
   

  	
  Attention: Heba Ahmad

  
	
   

  	
   

  	
  Telecopy: 713-750-2223

  
	
   

  	
   

  	
  Telephone: 713-750-3512

  

provided
that any notice, request or demand to or upon the Administrative Agent or the
Lenders shall not be effective until received.

 

Notices and other
communications to the Lenders hereunder may be delivered or furnished by
electronic communications pursuant to procedures approved by the Administrative
Agent; provided that the foregoing shall not apply to notices pursuant
to Section 2 unless otherwise agreed by the Administrative Agent and the
applicable Lender. The Administrative Agent or the Borrower may, in its
discretion, agree to accept notices and other communications to it hereunder by
electronic communications pursuant to procedures approved by it; provided
that approval of such procedures may be limited to particular notices or
communications.

 

9.3       No Waiver; Cumulative Remedies. No
failure to exercise and no delay in exercising, on the part of the
Administrative Agent or any Lender, any right, remedy, power or privilege
hereunder or under the other Loan Documents shall operate as a waiver thereof;
nor shall any single or partial exercise of any right, remedy, power or
privilege hereunder preclude any other or further exercise thereof or the
exercise of any other right, remedy, power or privilege. The rights, remedies,
powers and privileges herein provided are cumulative and not exclusive of any
rights, remedies, powers and privileges provided by law.

 

9.4       Survival of Representations and
Warranties. All representations and warranties made hereunder, in the other
Loan Documents and in any document, certificate or statement delivered pursuant
hereto or in connection herewith shall survive the execution and delivery of
this Agreement and the making of the Loans and other extensions of credit
hereunder.

 

9.5       Payment of Expenses and Taxes. The
Borrower agrees (a) to pay or reimburse the Administrative Agent, the Syndication
Agent and the Co-Syndication Agents for all of their respective reasonable
out-of-pocket costs and expenses incurred in connection with the development,
preparation

 

49

 

and execution of, and any
amendment, supplement or modification to, this Agreement and the other Loan
Documents and any other documents prepared in connection herewith or therewith,
and the consummation and administration of the transactions contemplated hereby
and thereby, including the reasonable fees and disbursements of one counsel to
the Administrative Agent, the Syndication Agent and the Co-Syndication Agents
and filing and recording fees and expenses, with statements with respect to the
foregoing to be submitted to the Borrower prior to the Closing Date (in the
case of amounts to be paid on the Closing Date) and from time to time
thereafter on a quarterly basis or such other periodic basis as the
Administrative Agent shall reasonably deem appropriate, (b) to pay or reimburse
each Lender and the Administrative Agent for all their reasonable costs and
expenses incurred in connection with the enforcement or preservation of any
rights under this Agreement, the other Loan Documents and any such other
documents, including the reasonable fees and disbursements of counsel to each
Lender and of counsel to the Administrative Agent, (c) to pay, indemnify, and
hold each Lender and the Administrative Agent harmless from, any and all
recording and filing fees and any and all liabilities with respect to, or
resulting from any delay in paying, stamp, excise and other taxes, if any, that
may be payable or determined to be payable in connection with the execution and
delivery of, or consummation or administration of any of the transactions
contemplated by, or any amendment, supplement or modification of, or any waiver
or consent under or in respect of, this Agreement, the other Loan Documents and
any such other documents, and (d) to pay, indemnify, and hold each Lender, the
Administrative Agent, the Syndication Agent and the Co-Syndication Agents and
their respective officers, directors, employees, affiliates, representatives,
agents and controlling persons (each, an “Indemnitee”) harmless from and
against any and all other liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, investigations, costs, expenses or disbursements of
any kind or nature whatsoever with respect to the execution, delivery,
enforcement, performance and administration of this Agreement, the other Loan Documents
and any such other documents, including any of the foregoing relating to the
use of proceeds of the Loans, any settlement entered into in connection with
the foregoing to the extent such settlement has been consented to by the
Borrower (which consent shall not be unreasonably withheld) or the violation
of, noncompliance with or liability under, any Environmental Law applicable to
the operations of any Group Member or any of the Properties and the reasonable
fees and expenses of legal counsel in connection with claims, actions or
proceedings by any Indemnitee against any Loan Party under any Loan Document
(all the foregoing in this clause (d), collectively, the “Indemnified
Liabilities”), regardless of whether any Indemnitee is a party thereto, provided,
that the Borrower shall have no obligation hereunder to any Indemnitee with
respect to Indemnified Liabilities to the extent such Indemnified Liabilities
are found by a final and nonappealable decision of a court of competent
jurisdiction to have resulted from the gross negligence or willful misconduct
of such Indemnitee. Without limiting the foregoing, and to the extent permitted
by applicable law, the Borrower agrees not to assert and to cause its
Subsidiaries not to assert, and hereby waives and agrees to cause its
Subsidiaries to waive, all rights for contribution or any other rights of
recovery with respect to all claims, demands, penalties, fines, liabilities,
settlements, damages, costs and expenses of whatever kind or nature, under or
related to Environmental Laws, that any of them might have by statute or
otherwise against any Indemnitee, to the extent such rights relate to this
Credit Agreement or the borrower/lender relationship established hereunder. All
amounts due under this Section 9.5 shall be payable not later than 30 days
after written demand therefor. Statements payable by the Borrower pursuant to
this Section 9.5 shall be submitted to Alexander Ioffe (Telephone No.
203-618-5870) (Telecopy No. 203-618-5835), at the address of the Borrower set
forth in Section 9.2, or to such other Person or address as may be hereafter
designated by the Borrower in a written notice to the Administrative Agent. The
agreements in this Section 9.5 shall survive repayment of the Loans and all
other amounts payable hereunder.

 

9.6       Successors and Assigns: Participations
and Assignments. (a) The provisions of this Agreement shall be binding upon
and inure to the benefit of the parties hereto and their respective successors
and assigns permitted hereby, except that (i) the Borrower may not assign or
otherwise transfer any of its rights or obligations hereunder without the prior
written consent of each Lender (and any

 

50

 

attempted assignment or
transfer by the Borrower without such consent shall be null and void) and (ii)
no Lender may assign or otherwise transfer its rights or obligations hereunder
except in accordance with this Section.

 

(b)(i) Subject to
the conditions set forth in paragraph (b)(ii) below, any Lender may assign to
one or more assignees (each, an “Assignee”) all or a portion of its
rights and obligations under this Agreement (including all or a portion of its
Revolving Commitments and the Loans at the time owing to it) with the prior
written consent of:

 

(A)
the Borrower (such consent not to be unreasonably withheld), provided
that no consent of the Borrower shall be required for an assignment to a
Lender, an affiliate of a Lender, an Approved Fund (as defined below) or, if an
Event of Default has occurred and is continuing, any other Person; and

 

(B)
the Administrative Agent (such consent not to be unreasonably withheld), provided
that no consent of the Administrative Agent shall be required for an assignment
to a Lender, an affiliate of a Lender or an Approved Fund.

 

(ii)
Assignments shall be subject to the following additional conditions:

 

(A)
except in the case of an assignment to a Lender, an affiliate of a Lender or an
Approved Fund or an assignment of the entire remaining amount of the assigning
Lender’s Revolving Commitments or Loans, the amount of the Revolving
Commitments or Loans of the assigning Lender subject to each such assignment
(determined as of the date the Assignment and Assumption with respect to such
assignment is delivered to the Administrative Agent) shall not be less than
$5.0 million unless each of the Borrower and the Administrative Agent otherwise
consent, provided that (1) no such consent of the Borrower shall be
required if an Event of Default has occurred and is continuing and (2) such
amounts shall be aggregated in respect of each Lender and its affiliates or
Approved Funds, if any;

 

(B)
the parties to each assignment shall execute and deliver to the Administrative
Agent an Assignment and Assumption, together with a processing and recordation
fee of $3,500; and

 

(C)
the Assignee, if it shall not be a Lender, shall deliver to the Administrative
Agent an administrative questionnaire.

 

For the purposes
of this Section 9.6, “Approved Fund” means any Person (other than a
natural person) that is engaged in making, purchasing, holding or investing in
bank loans and similar extensions of credit in the ordinary course of its
business and that is administered or managed by (a) a Lender, (b) an Affiliate
of a Lender or (c) an entity or an Affiliate of an entity that administers or
manages a Lender.

 

(iii) Subject to
acceptance and recording thereof pursuant to paragraph (b)(iv) below, from and
after the effective date specified in each Assignment and Assumption the
Assignee thereunder shall be a party hereto and, to the extent of the interest
assigned by such Assignment and Assumption, have the rights and obligations of
a Lender under this Agreement, and the assigning Lender thereunder shall, to
the extent of the interest assigned by such Assignment and Assumption, be
released from its obligations under this Agreement (and, in the case of an
Assignment and Assumption covering all of the assigning Lender’s rights and
obligations under this Agreement, such Lender shall cease to be a party hereto
but shall continue to be entitled to the benefits of Sections 2.10, 2.11, 2.12
and 9.5). Any assignment or transfer by a Lender of rights or obligations under
this Agreement that does not comply

 

51

 

with this Section 9.6
shall be treated for purposes of this Agreement as a sale by such Lender of a
participation in such rights and obligations in accordance with paragraph (c)
of this Section.

 

(iv) The
Administrative Agent, acting for this purpose as an agent of the Borrower,
shall maintain at one of its offices a copy of each Assignment and Assumption
delivered to it and a register for the recordation of the names and addresses
of the Lenders, and the Revolving Commitments of, and principal amount of the Loans
owing to, each Lender pursuant to the terms hereof from time to time (the “Register”).
The entries in the Register shall be conclusive, and the Borrower, the
Administrative Agent and the Lenders may treat each Person whose name is
recorded in the Register pursuant to the terms hereof as a Lender hereunder for
all purposes of this Agreement, notwithstanding notice to the contrary. The
Register shall be available for inspection by the Borrower and any Lender, at
any reasonable time and from time to time upon reasonable prior notice.

 

(v) Upon its
receipt of a duly completed Assignment and Assumption executed by an assigning
Lender and an Assignee, the Assignee’s completed administrative questionnaire
(unless the Assignee shall already be a Lender hereunder), the processing and
recordation fee referred to in paragraph (b) of this Section and any written
consent to such assignment required by paragraph (b) of this Section, the
Administrative Agent shall accept such Assignment and Assumption and record the
information contained therein in the Register. No assignment shall be effective
for purposes of this Agreement unless it has been recorded in the Register as
provided in this paragraph.

 

(c)(i) Any Lender
may, without the consent of the Borrower or the Administrative Agent, sell
participations to one or more banks or other entities (a “Participant”)
in all or a portion of such Lender’s rights and obligations under this
Agreement (including all or a portion of its Revolving Commitments and the
Loans owing to it); provided that (A) such Lender’s obligations under
this Agreement shall remain unchanged, (B) such Lender shall remain solely
responsible to the other parties hereto for the performance of such obligations
and (C) the Borrower, the Administrative Agent and the other Lenders shall
continue to deal solely and directly with such Lender in connection with such
Lender’s rights and obligations under this Agreement. Any agreement pursuant to
which a Lender sells such a participation shall provide that such Lender shall
retain the sole right to enforce this Agreement and to approve any amendment,
modification or waiver of any provision of this Agreement; provided that
such agreement may provide that such Lender will not, without the consent of
the Participant, agree to any amendment, modification or waiver that (1)
requires the consent of each Lender directly affected thereby pursuant to the
proviso to the second sentence of Section 9.1 and (2) directly affects such
Participant. Subject to paragraph (c)(ii) of this Section, the Borrower agrees
that each Participant shall be entitled to the benefits of Sections 2.10, 2.11
and 2.12 to the same extent as if it were a Lender and had acquired its
interest by assignment pursuant to paragraph (b) of this Section. To the extent
permitted by law, each Participant also shall be entitled to the benefits of
Section 9.7(b) as though it were a Lender, provided such Participant shall be
subject to Section 9.7(a) as though it were a Lender.

 

(ii) A Participant
shall not be entitled to receive any greater payment under Section 2.12 or 2.13
than the applicable Lender would have been entitled to receive with respect to
the participation sold to such Participant, unless the sale of the
participation to such Participant is made with the Borrower’s prior written
consent. Any Participant that is a Non-U.S. Lender shall not be entitled to the
benefits of Section 2.13 unless such Participant complies with Section 2.13(d).

 

(d) Any Lender may
at any time pledge or assign a security interest in all or any portion of its
rights under this Agreement to secure obligations of such Lender, including any
pledge or assignment to secure obligations to a Federal Reserve Bank, and this
Section shall not apply to any such pledge or assignment of a security
interest; provided that no such pledge or assignment of a security

 

52

 

interest shall release a
Lender from any of its obligations hereunder or substitute any such pledgee or
Assignee for such Lender as a party hereto.

 

(e) The Borrower,
upon receipt of written notice from the relevant Lender, agrees to issue Notes
to any Lender requiring Notes to facilitate transactions of the type described
in paragraph (d) above.

 

(f)
Notwithstanding the foregoing, any Conduit Lender may assign any or all of the
Loans it may have funded hereunder to its designating Lender without the
consent of the Borrower or the Administrative Agent and without regard to the
limitations set forth in Section 9.6(b). Each of the Borrower, each Lender and
the Administrative Agent hereby confirms that it will not institute against a
Conduit Lender or join any other Person in instituting against a Conduit Lender
any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceeding under any state bankruptcy or similar law, for one year and one day
after the payment in full of the latest maturing commercial paper note issued
by such Conduit Lender; provided, however, that each Lender designating
any Conduit Lender hereby agrees to indemnify, save and hold harmless each
other party hereto for any loss, cost, damage or expense arising out of its
inability to institute such a proceeding against such Conduit Lender during
such period of forbearance.

 

9.7       Adjustments; Set-off. (a) Except to
the extent that this Agreement expressly provides for payments to be allocated
to a particular Lender, if any Lender (a “Benefitted Lender”) shall
receive any payment of all or part of the Obligations owing to it, or receive
any collateral in respect thereof (whether voluntarily or involuntarily, by
set-off, pursuant to events or proceedings of the nature referred to in Section
8(f), or otherwise), in a greater proportion than any such payment to or
collateral received by any other Lender, if any, in respect of the Obligations
owing to such other Lender, such Benefitted Lender shall purchase for cash from
the other Lenders a participating interest in such portion of the Obligations
owing to each such other Lender, or shall provide such other Lenders with the
benefits of any such collateral, as shall be necessary to cause such Benefitted
Lender to share the excess payment or benefits of such collateral ratably with
each of the Lenders; provided, however, that if all or any
portion of such excess payment or benefits is thereafter recovered from such
Benefitted Lender, such purchase shall be rescinded, and the purchase price and
benefits returned, to the extent of such recovery, but without interest.

 

(b) In addition to
any rights and remedies of the Lenders provided by law, each Lender shall have
the right, without prior notice to the Borrower, any such notice being
expressly waived by the Borrower to the extent permitted by applicable law,
upon any amount becoming due and payable by the Borrower hereunder (whether at
the stated maturity, by acceleration or otherwise), to set off and appropriate
and apply against such amount any and all deposits (general or special, time or
demand, provisional or final), in any currency, and any other credits,
indebtedness or claims, in any currency, in each case whether direct or
indirect, absolute or contingent, matured or unmatured, at any time held or
owing by such Lender or any branch or agency thereof to or for the credit or
the account of the Borrower, as the case may be. Each Lender agrees promptly to
notify the Borrower and the Administrative Agent after any such setoff and
application made by such Lender, provided that the failure to give such
notice shall not affect the validity of such setoff and application.

 

9.8       Counterparts. This Agreement may
be executed by one or more of the parties to this Agreement on any number of
separate counterparts, and all of said counterparts taken together shall be
deemed to constitute one and the same instrument. Delivery of an executed signature
page of this Agreement by facsimile transmission shall be effective as delivery
of a manually executed counterpart hereof. A set of the copies of this
Agreement signed by all the parties shall be lodged with the Borrower and the Administrative Agent.

 

53

 

9.9       Severability. Any provision of
this Agreement that is prohibited or unenforceable in any jurisdiction shall,
as to such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate
or render unenforceable such provision in any other jurisdiction.

 

9.10     Integration. This Agreement and the
other Loan Documents represent the entire agreement of the Borrower, the
Administrative Agent and the Lenders with respect to the subject matter hereof
and thereof, and there are no promises, undertakings, representations or
warranties by the Administrative Agent or any Lender relative to the subject
matter hereof not expressly set forth or referred to herein or in the other
Loan Documents.

 

9.11     GOVERNING
LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

9.12     Submission To Jurisdiction; Waivers.
The Borrower hereby irrevocably and unconditionally:

 

(a)
submits for itself and its property in any legal action or proceeding relating
to this Agreement and the other Loan Documents to which it is a party, or for
recognition and enforcement of any judgment in respect thereof, to the
non-exclusive general jurisdiction of the courts of the State of New York, the
courts of the United States for the Southern District of New York, and
appellate courts from any thereof;

 

(b)
consents that any such action or proceeding may be brought in such courts and
waives any objection that it may now or hereafter have to the venue of any such
action or proceeding in any such court or that such action or proceeding was
brought in an inconvenient court and agrees not to plead or claim the same;

 

(c)
agrees that service of process in any such action or proceeding may be effected
by mailing a copy thereof by registered or certified mail (or any substantially
similar form of mail), postage prepaid, to the Borrower, as the case may be at
its address set forth in Section 9.2 or at such other address of which the
Administrative Agent shall have been notified pursuant thereto;

 

(d)
agrees that nothing herein shall affect the right to effect service of process
in any other manner permitted by law or shall limit the right to sue in any
other jurisdiction; and

 

(e)
waives, to the maximum extent not prohibited by law, any right it may have to
claim or recover in any legal action or proceeding referred to in this Section
any special, exemplary, punitive or consequential damages.

 

9.13     Acknowledgements. The Borrower
hereby acknowledges that:

 

(a) it
has been advised by counsel in the negotiation, execution and delivery of this
Agreement and the other Loan Documents;

 

(b)
neither the Administrative Agent nor any Lender has any fiduciary relationship
with or duty to the Borrower arising out of or in connection with this
Agreement or any of the other Loan Documents, and the relationship between
Administrative Agent and Lenders, on one hand,

 

54

 

and the Borrower, on the
other hand, in connection herewith or therewith is solely that of debtor and
creditor; and

 

(c) no
joint venture is created hereby or by the other Loan Documents or otherwise
exists by virtue of the transactions contemplated hereby among the Lenders or
among the Borrower and the Lenders.

 

9.14     Releases of Guarantees and Liens.
(a) Notwithstanding anything to the contrary contained herein or in any other
Loan Document, the Administrative Agent is hereby irrevocably authorized by
each Lender (without requirement of notice to or consent of any Lender except as
expressly required by Section 9.1) to take any action requested by the Borrower
having the effect of releasing any Collateral or guarantee obligations (i) to
the extent necessary to permit consummation of any transaction not prohibited
by any Loan Document or that has been consented to in accordance with Section
9.1 or (ii) under the circumstances described in paragraph (b) below.

 

(b) At such time
as the Loans and the other obligations under the Loan Documents (other than
obligations under or in respect of Swap Agreements) shall have been paid in
full and the Revolving Commitments have been terminated, the Collateral shall
be released from the Liens created by the Security Documents, and the Security
Documents and all obligations (other than those expressly stated to survive
such termination) of the Administrative Agent and each Loan Party under the
Security Documents shall terminate, all without delivery of any instrument or
performance of any act by any Person.

 

9.15     Confidentiality. Each of the Administrative
Agent and each Lender agrees to keep, and to cause its Affiliates to keep,
confidential all non-public information provided to it by any Loan Party, the
Administrative Agent or any Lender pursuant to or in connection with this
Agreement that is designated by the provider thereof as confidential; provided
that nothing herein shall prevent the Administrative Agent or any Lender from
disclosing any such information (a) to the Administrative Agent, any other
Lender, (b) subject to an agreement to comply with the provisions of this
Section, to any actual or prospective Transferee or any direct or indirect
counterparty to any Swap Agreement (or any professional advisor to such
counterparty), (c) to its Affiliates, and its and its Affiliates, respective employees,
directors, officers and agents, including accountants, legal counsel and other
advisors or to any other Lender or Participant (it being understood that such
disclosure will be made only to such Persons who have the need to know such
information and only if the Persons to whom such disclosure is made are
informed of the confidential nature of such Information, instructed to keep
such information confidential and receive such information in connection with
(i) their evaluation of the ability of the Borrower to repay the Loans and
perform their other obligations under the Loan Documents, (ii) administering
the Obligations under this Agreement, (iii) servicing the Borrowings hereunder,
(iv) protecting their interests under this Agreement or (v) performing any
similar function in connection with any other extension of credit by the
Lenders to the Borrower or a Subsidiary (excluding any transaction in any
public security of the Borrower or a Subsidiary), (d) upon the request or
demand of any Governmental or Regulatory Authority, (e) in response to any
order of any court or other Governmental or Regulatory Authority or as may
otherwise be required pursuant to any Requirement of Law, (f) if requested or
required to do so in connection with any litigation or similar proceeding, (g)
that has been publicly disclosed other than as a result of a known breach of
any requirement to keep such information confidential, (h) to the National
Association of Insurance Commissioners or any similar organization or any
nationally recognized rating agency that requires access to information about a
Lender’s investment portfolio in connection with ratings issued with respect to
such Lender, or (i) in connection with the exercise of any remedy hereunder or
under any other Loan Document.

 

9.16     WAIVERS
OF JURY TRIAL. THE BORROWER, THE ADMINISTRATIVE AGENT AND THE
LENDERS HEREBY IRREVOCABLY AND

 

55

 

UNCONDITIONALLY
WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT
OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

 

9.17     USA PATRIOT Act. Each Lender subject
to the Act hereby notifies the Borrower that pursuant to the requirements of
the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26,
2001)) (the “Act”), it is hereby required to obtain, verify and record
information that identifies the Borrower, which information includes the name
and address of the Borrower and other information that will allow such Lender
to identify the Borrower in accordance with the Act.

 

56

 

IN WITNESS
WHEREOF, the parties hereto have caused this Agreement to be duly executed and
delivered by their proper and duly authorized officers as of the day and year first
above written.

 

	
   

  	
  INTERACTIVE BROKERS
  GROUP LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul J. Brody

  
	
   

  	
   

  	
  Name: Paul J. Brody 

  
	
   

  	
   

  	
  Title: Chief Financial
  Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE BANK,
  N.A., as Administrative

  Agent and as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert Anastasio

  
	
   

  	
   

  	
  Name: Robert Anastasio

  
	
   

  	
   

  	
  Title: Vice President

  

 

 

SIGNATURE PAGE TO CREDIT AGREEMENT

 

 

	
   

  	
  HARRIS N.A., as
  Syndication Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Linda Haven

  
	
   

  	
   

  	
  Name: Linda Haven

  
	
   

  	
   

  	
  Title: Managing
  Director

  

 

 

SIGNATURE PAGE TO CREDIT AGREEMENT

 

 

	
   

  	
  HARRIS NESBITT
  FINANCING INC., as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Linda Haven

  
	
   

  	
   

  	
  Name: Linda Haven

  
	
   

  	
   

  	
  Title: Managing
  Director

  

 

 

SIGNATURE PAGE TO CREDIT AGREEMENT

 

 

	
   

  	
  CITIBANK, N.A., as
  Co-Syndication Agent and a

  Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William R. Mandaro

  
	
   

  	
   

  	
  Name: William R.
  Mandaro

  
	
   

  	
   

  	
  Title: Director

  

 

 

SIGNATURE PAGE TO CREDIT AGREEMENT

 

 

	
   

  	
  HSBC BANK USA, NATIONAL
  ASSOCIATION, as

  Co-Syndication Agent and a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul Lopez

  
	
   

  	
   

  	
  Name: Paul Lopez

  
	
   

  	
   

  	
  Title: Senior Vice
  President

  

 

 

SIGNATURE PAGE TO CREDIT AGREEMENT

 

 

	
   

  	
  BANK OF AMERICA, N.A.,
  as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Maryanne
  Fitzmaurice

  
	
   

  	
   

  	
  Name: Maryanne
  Fitzmaurice

  
	
   

  	
   

  	
  Title: Senior Vice
  President

  

 

 

SIGNATURE PAGE TO CREDIT AGREEMENT

 

 

	
   

  	
  U.S. BANK NATIONAL
  ASSOCIATION, as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Heath Williams

  
	
   

  	
   

  	
  Name: Heath Williams

  
	
   

  	
   

  	
  Title: Assitant Vice
  President

  

 

SIGNATURE PAGE TO CREDIT AGREEMENT

 

 

	
   

  	
  WACHOVIA BANK, N.A., as
  a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stephanie Cornell

  
	
   

  	
   

  	
  Name: Stephanie Cornell

  
	
   

  	
   

  	
  Title: Senior Vice
  President

  

 

 

SIGNATURE PAGE TO CREDIT AGREEMENTExhibit 10.2

 

 

PLEDGE
AND COLLATERAL AGENCY AGREEMENT

 

made by

 

INTERACTIVE
BROKERS GROUP LLC

 

and
certain of its Subsidiaries

 

in favor
of

 

JPMORGAN
CHASE BANK, N.A., as

Collateral Agent

 

Dated as
of May 19, 2006

 

 

 

TABLE OF CONTENTS

 

	
  SECTION
  1.

  	
  DEFINED
  TERMS

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
  1.1.

  	
   Definitions

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION
  2.

  	
  GRANT
  OF SECURITY INTEREST

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION
  3.

  	
  REPRESENTATIONS
  AND WARRANTIES

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
  3.1.

  	
   Title; No Other
  Liens

  	
   

  	
  4

  
	
  3.2.

  	
   Perfected First
  Priority Liens

  	
   

  	
  4

  
	
  3.3.

  	
   Jurisdiction of
  Organization; Chief Executive Office

  	
   

  	
  5

  
	
  3.4.

  	
   Pledged Stock

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION
  4.

  	
  COVENANTS

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  
	
  4.1.

  	
   Delivery of
  Instruments; Certificated Securities and Chattel Paper

  	
   

  	
  5

  
	
  4.2.

  	
   Maintenance of
  Perfected Security Interest; Further Documentation

  	
   

  	
  5

  
	
  4.3.

  	
   Changes in Name, etc.

  	
   

  	
  6

  
	
  4.4.

  	
   Notices

  	
   

  	
  6

  
	
  4.5.

  	
   Pledged Stock

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION
  5.

  	
  REMEDIAL
  PROVISIONS

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
  5.1.

  	
   Pledged Stock

  	
   

  	
  7

  
	
  5.2.

  	
   Proceeds to be
  Turned Over To Collateral Agent

  	
   

  	
  8

  
	
  5.3.

  	
   Application of
  Proceeds

  	
   

  	
  8

  
	
  5.4.

  	
   Code and Other
  Remedies

  	
   

  	
  8

  
	
  5.5.

  	
   Registration
  Rights

  	
   

  	
  9

  
	
  5.6.

  	
   Deficiency

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION
  6.

  	
  THE
  COLLATERAL AGENT

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
  6.1.

  	
   Collateral
  Agent’s Appointment as Attorney-in-Fact, etc.

  	
   

  	
  10

  
	
  6.2.

  	
   Duty of
  Collateral Agent

  	
   

  	
  11

  
	
  6.3.

  	
   Execution of
  Financing Statements

  	
   

  	
  12

  
	
  6.4.

  	
   Authority of Collateral
  Agent

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION
  7.

  	
  MISCELLANEOUS

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
  7.1.

  	
   Amendments in
  Writing

  	
   

  	
  12

  
	
  7.2.

  	
   Notices

  	
   

  	
  12

  
	
  7.3.

  	
   No Waiver by
  Course of Conduct; Cumulative Remedies

  	
   

  	
  13

  
	
  7.4.

  	
   Successors and
  Assigns

  	
   

  	
  13

  
	
  7.5.

  	
   Counterparts

  	
   

  	
  13

  
	
  7.6.

  	
   Severability

  	
   

  	
  13

  
	
  7.7.

  	
   Section Headings

  	
   

  	
  13

  
	
  7.8.

  	
   Integration

  	
   

  	
  13

  
	
  7.9.

  	
   GOVERNING LAW

  	
   

  	
  13

  
	
  7.10.

  	
   Submission To
  Jurisdiction; Waivers

  	
   

  	
  13

  

 

 

	
  7.11.

  	
  Acknowledgments

  	
   

  	
  14

  
	
  7.12.

  	
  Additional Grantors

  	
   

  	
  14

  
	
  7.13.

  	
  Releases

  	
   

  	
  14

  
	
  7.14.

  	
  Limitation on
  Collateral Agent’s Responsibilities with Respect to IBG Note Holders

  	
   

  	
  15

  
	
  7.15.

  	
  WAIVER
  OF JURY TRIAL

  	
   

  	
  16

  
	
  7.16.

  	
  Grantors

  	
   

  	
  16

  

 

	
  SCHEDULES

  	
   

  
	
   

  	
   

  
	
  Schedule 1

  	
  Notice Addresses

  
	
  Schedule 2

  	
  Pledged Stock

  
	
  Schedule 3

  	
  Perfection Matters

  
	
  Schedule 4

  	
  Jurisdictions of
  Organization and Chief Executive Offices

  
	
   

  	
   

  
	
  ANNEXES

  	
   

  
	
   

  	
   

  
	
  Annex 1

  	
  Form of Acknowledgment
  and Consent

  
	
  Annex 2

  	
  Form of Assumption
  Agreement

  

 

 

PLEDGE AND COLLATERAL AGENCY AGREEMENT

 

PLEDGE AND
COLLATERAL AGENCY AGREEMENT, dated as of May 19, 2006, made by INTERACTIVE
BROKERS GROUP LLC (the “Borrower”) and each of the other signatories
hereto (together with any other entity that may become a party hereto as
provided herein, the “Grantors”), in favor of JPMORGAN CHASE BANK, N.A.,
as Collateral Agent for the Secured Parties (as hereinafter defined) (in such
capacity, the “Collateral Agent”), and JPMORGAN CHASE BANK, N.A., as
Bank Agent (as hereunder defined).

 

W  I  T  N 
E  S  S 
E  T  H:

 

WHEREAS, pursuant
to the Credit Agreement (as hereinafter defined) the Lenders (as hereinafter defined)
have severally agreed to make extensions of credit to the Borrower upon the
terms and subject to the conditions set forth therein;

 

WHEREAS, the
Borrower is a member of an affiliated group of companies that includes each
other Grantor;

 

WHEREAS, the
proceeds of the extensions of credit under the Credit Agreement will be used in
part to enable the Borrower to make valuable transfers to one or more of the
other Grantors in connection with the operation of their respective businesses;

 

WHEREAS, the Borrower
and the other Grantors are engaged in related businesses, and each Grantor will
derive substantial direct and indirect benefit from the making of the
extensions of credit under the Credit Agreement;

 

WHEREAS, pursuant
to the Offering Memorandum (as hereinafter defined), the Borrower will from
time to time issue senior notes (the “IBG Notes”); and

 

WHEREAS, it is a
condition precedent to the obligation of the Lenders to make their respective
extensions of credit to the Borrower under the Credit Agreement that the
Grantors shall have executed and delivered this Agreement to the Collateral
Agent (as hereinafter defined) for the ratable benefit of the Secured Parties;

 

NOW, THEREFORE, in
consideration of the premises and to induce the Collateral Agent and the
Lenders to enter into the Credit Agreement and to induce the Lenders to make
their respective extensions of credit to the Borrower thereunder, each Grantor
hereby agrees with the Collateral Agent, for the ratable benefit of the Secured
Parties, as follows:

 

SECTION 1. DEFINED TERMS

 

1.1.      Definitions. (a)
Unless otherwise defined herein, terms defined in the Credit Agreement and used
herein shall have the meanings given to them in the Credit Agreement and the
following terms are used herein as defined in the Code (as hereinafter
defined): Certificated Security, Chattel Paper and Instruments.

 

(b)       The following terms shall
have the following meanings:

 

“Agreement”:
this Pledge and Collateral Agency Agreement, as the same may be amended,
supplemented or otherwise modified from time to time.

 

 

“Bank
Agent”: JPMorgan Chase Bank, N.A., a New York banking corporation, in its
capacity as administrative agent under the Credit Agreement.

 

“Bank
Collateral”: the collateral pledged pursuant to the Guarantee and Collateral
Agreement.

 

“Borrower
Obligations”: the collective reference to the unpaid principal of and
interest on the Loans and all other obligations and liabilities of the Borrower
(including, without limitation, interest accruing at the then applicable rate
provided in the Credit Agreement after the maturity of the Loans and interest
accruing at the then applicable rate provided in the Credit Agreement after the
filing of any petition in bankruptcy, or the commencement of any insolvency,
reorganization or like proceeding, relating to the Borrower, whether or not a
claim for post-filing or post-petition interest is allowed in such proceeding)
to the Bank Agent or any Lender (or, in the case of any Specified Swap
Agreement, any Affiliate of any Lender), whether direct or indirect, absolute
or contingent, due or to become due, or now existing or hereafter incurred,
which may arise under the Credit Agreement, this Agreement, the other Loan
Documents, any Specified Swap Agreement or any other document made, delivered
or given in connection with any of the foregoing, in each case whether on
account of principal, interest, reimbursement obligations, fees, indemnities,
costs, expenses or otherwise (including, without limitation, all fees and
disbursements of counsel to the Bank Agent or to the Lenders that are required
to be paid by the Borrower pursuant to the terms of any of the foregoing
agreements).

 

“Capital
Stock”: any and all shares, interests, participations or other equivalents
(however designated) of capital stock of a corporation, any and all equivalent
ownership interests in a Person (other than a corporation) and any and all
warrants, rights or options to purchase any of the foregoing, except for debt
securities convertible or exchangeable into such capital stock.

 

“Code”:
the Uniform Commercial Code as from time to time in effect in the State of New
York.

 

“Collateral”:
as defined in Section 2.

 

“Collateral
Account”: any collateral account established by the Collateral Agent as
provided in Section 5.2 or 5.3.

 

“Collateral
Agent”: JPMorgan Chase Bank, N.A., a New York banking corporation, in its
capacity as collateral agent hereunder.

 

“Credit
Agreement”: the Credit Agreement dated as of May 19, 2006, among the
Borrower, the Lenders, Harris, N.A., as syndication agent, Citibank, N.A. and
HSBC Bank USA, National Association, as co-syndication agents, and the Bank
Agent, as the same may be amended, supplemented or otherwise modified from time
to time.

 

“Event
of Default”: either an Event of Default (as defined in the Credit
Agreement) or an Event of Default (as defined in any IBG Note).

 

“Foreign
Subsidiary”: any Subsidiary organized under the laws of any jurisdiction
outside the United States of America.

 

“Foreign
Subsidiary Voting Stock”: the voting Capital Stock of any Foreign
Subsidiary.

 

2

 

“IBG
Note Holders”: the holders from time to time of the IBG Notes.

 

“IBG
Note Obligations”: the collective reference to the unpaid principal of and
interest on the IBG Notes and all other obligations and liabilities of the
Borrower to the IBG Note Holders under the IBG Notes, whether direct or
indirect, absolute or contingent, due or to become due, or now existing or
hereafter incurred, that may arise under the IBG Notes, whether on account of
principal, interest, reimbursement obligations, fees, indemnities, costs,
expenses or otherwise (including, without limitation, all fees and
disbursements of counsel to the IBG Note Holders that are required to be paid
by the Borrower pursuant to the terms of the IBG Notes or this Agreement.

 

“Issuers”: the collective reference to each
issuer of Pledged Stock that is a Wholly Owned Subsidiary that is a Material
Subsidiary.

 

“Lenders”: the holders from time to time of
Borrower Obligations.

 

“Obligations”: the collective reference to
the Borrower Obligations and the IBG Note Obligations.

 

“Offering Memorandum”: the Confidential
Private Offering Memorandum, dated as of April 6, 2006, in respect of the IBG
Notes, as the same may be amended, supplemented or otherwise modified from time
to time.

 

“Pledged Stock”: the shares of Capital Stock
of any Subsidiary listed on Schedule 2 required to be pledged hereunder,
together with any other shares, stock certificates, options, interests or
rights of any nature whatsoever in respect of the Capital Stock of any
Subsidiary (other than any voting rights in respect of any broker-dealer) that
may be issued or granted to, or held by, any Grantor while this Agreement is in
effect; provided that in no event shall more than 65% of the total
outstanding Foreign Subsidiary Voting Stock of any first tier Foreign
Subsidiary of any Grantor be deemed to be pledged hereunder (and in no event
shall any of the Capital Stock of any other Foreign Subsidiary of such Grantor
be deemed to be pledged hereunder).

 

“Proceeds”: all “proceeds” as such term is
defined in Section 9-102(a)(64) of the Code and, in any event, shall include,
without limitation, all dividends or other income from the Pledged Stock,
collections thereon or distributions or payments with respect thereto.

 

“Required Note Holders”: at any time, IBG
Note Holders holding more than 50% of the IBG Notes then outstanding.

 

“Secured Parties”: the collective reference
to the Lenders, the Bank Agent, the Collateral Agent and the IBG Note Holders.

 

“Securities Act”: the Securities Act of 1933,
as amended.

 

(c)       Other Definitional Provisions. (i) The words “hereof,” “herein,” “hereto”
and “hereunder” and words of similar import when used in this Agreement shall
refer to this Agreement as a whole and not to any particular provision of this
Agreement, and Section and Schedule references are to this Agreement unless
otherwise specified.

 

(ii)       The meanings given to terms
defined herein shall be equally applicable to both the singular and plural
forms of such terms.

 

3

 

(iii)      Where the
context requires, terms relating to the Collateral or any part thereof, when
used in relation to a Grantor, shall refer to such Grantor’s Collateral or the
relevant part thereof.

 

SECTION 2. GRANT OF SECURITY
INTEREST

 

Each Grantor hereby assigns and transfers to the Collateral Agent, and
hereby grants to the Collateral Agent, for the ratable benefit of the Secured
Parties (and in the case of Specified Swap Agreements, Affiliates of Lenders),
a security interest in, all of the following property now owned or at any time
hereafter acquired by such Grantor or in which such Grantor now has or at any
time in the future may acquire any right, title or interest (collectively, the “Collateral”),
as collateral security for the prompt and complete payment and performance when
due (whether at the stated maturity, by acceleration or otherwise) of the
Obligations:

 

(a)       all Pledged Stock;

 

(b)       to the extent not otherwise
included, all Proceeds and products of any and all of the Pledged Stock;

 

provided, however, that notwithstanding any of
the other provisions set forth in this Section 2, this Agreement shall not constitute a grant of a security
interest in any property to the extent that such grant of a security interest
is prohibited by any Requirements of Law of a Governmental Authority, requires
a consent not obtained (after the commercially reasonable efforts of the
relevant Grantor) of any Governmental Authority pursuant to such Requirement of
Law or is prohibited by, or constitutes a breach or default under or results in
the termination of or requires any consent not obtained (after the commercially
reasonable efforts of the relevant Grantor) under, any contract, license,
agreement, instrument or other document evidencing or giving rise to such
property or any applicable shareholder or similar agreement, except to the
extent that such Requirement of Law or the term in such contract, license,
agreement, instrument or other document or shareholder or similar agreement
providing for such prohibition, breach, default or termination or requiring
such consent is ineffective under applicable law.

 

SECTION 3. REPRESENTATIONS
AND WARRANTIES

 

To induce the Collateral Agent and the Lenders to enter into the Credit
Agreement and to induce the Lenders to make their respective extensions of
credit to the Borrower thereunder, each Grantor hereby represents and warrants
to the Collateral Agent and each Secured Party that:

 

3.1.      Title; No Other Liens.
Except for the security interest granted to the Collateral Agent for the
ratable benefit of the Secured Parties (and in the case of Specified Swap
Agreements, Affiliates of Lenders) pursuant to this Agreement and the other
Liens permitted to exist on the Collateral by the Credit Agreement, such
Grantor owns each item of the Collateral free and clear of any and all Liens or
claims of others. No Grantor has filed, consented to or authorized the filing
of any financing statement or other public notice with respect to all or any
part of the Collateral in any public office, except such as have been filed in
favor of the Collateral Agent, for the ratable benefit of the Secured Parties
(and in the case of Specified Swap Agreements, Affiliates of Lenders), pursuant
to this Agreement or as are permitted by the Credit Agreement.

 

3.2.      Perfected First Priority
Liens. When financing statements and the other filings specified on Schedule
3 in appropriate form are filed in the offices specified in Schedule 3
and the Pledged Stock been delivered to the Collateral Agent, as required
(assuming continued possession by the Collateral Agent of such certificates and
that such certificates are located in the United States), this

 

4

 

Agreement
will be effective to create, in favor of the Collateral Agent, for the ratable
benefit of the Secured Parties (and in the case of Specified Swap Agreements,
Affiliates of Lenders), a valid and perfected security interest under the Code
in all of the respective right, title and interest of each Grantor in, to and
under the Collateral, as collateral security for payment of the Obligations to
the extent perfection can be achieved by filing Uniform Commercial Code
financing statements and delivering Pledged Stock and such security interest
will be prior to all other Liens on the Collateral in existence on the date
hereof except for Liens permitted by the Credit Agreement.

 

3.3.      Jurisdiction of Organization; Chief Executive
Office. On the date hereof,
such Grantor’s jurisdiction of organization, identification number from the
jurisdiction of organization (if any), and the location of such Grantor’s chief
executive office or sole place of business or principal residence, as the case
may be, are specified on Schedule 4. Such Grantor has furnished to the
Collateral Agent a certified charter, certificate of incorporation or other
organization document and long-form good standing certificate as of a date
which is recent to the date hereof.

 

3.4.      Pledged Stock. (a) The shares of Pledged Stock pledged by
such Grantor hereunder constitute all the issued and outstanding shares of all
classes of the Capital Stock of each Issuer owned by such Grantor or, in the
case of Foreign Subsidiary Voting Stock 65% of the outstanding Foreign
Subsidiary Voting Stock of each relevant Issuer.

 

(b)       All the shares of the Pledged Stock have been
duly and validly issued and are fully paid and nonassessable.

 

(c)       Such Grantor is the record and beneficial
owner of, and has good and marketable title to, the Pledged Stock, free of any
and all Liens or options in favor of, or claims of, any other Person, except
the security interest created by this Agreement and Liens permitted by the
Credit Agreement.

 

SECTION 4. COVENANTS

 

Each Grantor covenants and agrees with the Collateral Agent and the
Secured Parties that, from and after the date of this Agreement until the
Obligations shall have been paid in full and the Revolving Commitments shall
have terminated:

 

4.1.      Delivery of Instruments: Certificated
Securities and Chattel Paper.
If any amount payable under or in connection with any of the Collateral shall
be or become evidenced by any Instrument, Certificated Security or Chattel
Paper, such Instrument, Certificated Security or Chattel Paper shall be
immediately delivered to the Collateral Agent, duly indorsed in a manner
satisfactory to the Collateral Agent, to be held as Collateral pursuant to this
Agreement.

 

4.2.      Maintenance of Perfected Security Interest:
Further Documentation. (a)
Such Grantor shall maintain the security interest in the Collateral created by
this Agreement as a perfected security interest having at least the priority
described in Section 4.2 with respect to the Collateral and shall defend such
security interest against the claims and demands of all Persons whomsoever,
subject to the rights of such Grantor under the Loan Documents to dispose of
the Collateral.

 

(b)       Such Grantor will furnish to the Collateral
Agent and the Secured Parties from time to time statements and schedules
further identifying and describing the assets and property of such Grantor and
such other reports in connection therewith as the Collateral Agent may
reasonably request, all in reasonable detail.

 

5

 

(c)       At any time and from time
to time, upon the written request of the Collateral Agent, and at the sole
expense of such Grantor, such Grantor will promptly and duly execute and
deliver, and have recorded, such additional financing or continuation
statements (or other filings as reasonably necessary) and deliver any
additional Pledged Stock or take such further actions as necessary to enable
the Collateral Agent to obtain “control” (within the meaning of the applicable
Uniform Commercial Code) with respect to the Pledged Stock, as required, as the
Collateral Agent may reasonably request for the purpose of obtaining or
preserving the full benefits of this Agreement and of the rights and powers
herein granted.

 

4.3.      Changes in Name, etc.
Such Grantor will not, except upon 15 days’ prior written notice to the
Collateral Agent and delivery to the Collateral Agent of all additional
executed financing statements and other documents reasonably requested by the
Collateral Agent to maintain the validity, perfection and priority of the
security interests provided for herein, (i) change its jurisdiction of
organization or the location of its chief executive office or sole place of
business or principal residence from that referred to in Section 3.3 or (ii)
change its name.

 

4.4.      Notices. Such Grantor
will advise the Collateral Agent and the Secured Parties promptly, in
reasonable detail, of the occurrence of any event set forth in Section 5.7(d)
of the Credit Agreement.

 

4.5.      Pledged Stock. (a) If
such Grantor shall become entitled to receive or shall receive, pursuant to
Section 5.8 of the Credit Agreement, any certificate, option or rights in
respect of the Capital Stock of any Issuer, whether in addition to, in
substitution of, as a conversion of, or in exchange for, any shares of the
Pledged Stock, or otherwise in respect thereof, such Grantor shall accept the
same as the agent of the Collateral Agent and the Secured Parties, hold the
same in trust for the Collateral Agent and the Secured Parties and deliver the
same forthwith to the Collateral Agent in the exact form received, duly
indorsed by such Grantor to the Collateral Agent, if required, together with an
undated stock power covering such certificate duly executed in blank by such
Grantor and with, if the Collateral Agent so requests, signature guaranteed, to
be held by the Collateral Agent, subject to the terms hereof, as additional
collateral security for the Obligations. Subject to the terms of the Credit
Agreement, any sums paid upon or in respect of the Pledged Stock upon any
liquidation or dissolution which is not permitted under the Credit Agreement of
any Issuer shall be paid over to the Collateral Agent to be held by it
hereunder as additional collateral security for the Obligations, and in case
any distribution of capital which is not permitted under the Credit Agreement
shall be made on or in respect of the Pledged Stock or any property shall be
distributed upon or with respect to the Pledged Stock pursuant to the
recapitalization or reclassification of the capital of any Issuer or pursuant
to the reorganization thereof which in any such case is not permitted under the
Credit Agreement, the property so distributed shall, unless otherwise subject
to a perfected security interest in favor of the Collateral Agent, be delivered
to the Collateral Agent to be held by it hereunder as additional collateral
security for the Obligations. If any sums of money or property so paid or
distributed in respect of the Pledged Stock which is required by this Section
4.5 to be paid or delivered over to the Collateral Agent shall be received by
such Grantor, such Grantor shall, until such money or property is paid or
delivered to the Collateral Agent, hold such money or property in trust for the
Collateral Agent and the Secured Parties, segregated from other funds of such
Grantor, as additional collateral security for the Obligations.

 

(b)       In the case of each Grantor
which is an Issuer, such Issuer agrees that (i) it will be bound by the terms
of this Agreement relating to the Pledged Stock issued by it and will comply
with such terms insofar as such terms are applicable to it and (ii) the terms
of Sections 5.1(c) and 5.5 shall apply to it, mutatis  mutandis,
with respect to all actions that may be required of it pursuant to Section
5.1(c) or 5.5 with respect to the Pledged Stock issued by it.

 

6

 

SECTION
5. REMEDIAL PROVISIONS

 

5.1.      Pledged Stock. (a)
Unless an Event of Default shall have occurred and be continuing and the
Collateral Agent shall have given notice to the relevant Grantor of the
Collateral Agent’s intent to exercise its corresponding rights pursuant to
Section 6.3(b), each Grantor shall be permitted to receive all cash dividends
paid in respect of the Pledged Stock paid in the normal course of business of
the relevant Issuer and consistent with past practice, to the extent permitted
in the Credit Agreement, and to exercise all voting and corporate or other
organizational rights with respect to the Pledged Stock; provided, however,
that no vote shall be cast or corporate or other organizational right exercised
or other action taken which, in the Collateral Agent’s reasonable judgment,
would impair the Collateral or which would constitute or result in a Default or
Event of Default under the Credit Agreement, this Agreement or any other Loan
Document.

 

(b)       If an Event of Default
shall occur and be continuing and the Collateral Agent shall have given three
Business Days notice of its intent to exercise such rights to the relevant
Grantor or Grantors, (i) the Collateral Agent shall have the right to receive
any and all cash dividends or other Proceeds paid in respect of the Pledged
Stock and make application thereof to the Obligations in such order as the
Collateral Agent may determine, and (ii) any or all of the Pledged Stock shall
be registered in the name of the Collateral Agent or its nominee, and the
Collateral Agent or its nominee may thereafter exercise (x) all voting,
corporate and other rights pertaining to such Pledged Stock at any meeting of
shareholders of the relevant Issuer or Issuers or otherwise and (y) any and all
rights of conversion, exchange and subscription and any other rights,
privileges or options pertaining to such Pledged Stock as if it were the
absolute owner thereof (including, without limitation, the right to exchange at
its discretion any and all of the Pledged Stock upon the merger, consolidation,
reorganization, recapitalization or other fundamental change in the corporate
or other organizational structure of any Issuer, or upon the exercise by any
Grantor or the Collateral Agent of any right, privilege or option pertaining to
such Pledged Stock, and in connection therewith, the right to deposit and
deliver any and all of the Pledged Stock with any committee, depositary,
transfer agent, registrar or other designated agency upon such terms and
conditions as the Collateral Agent may determine), all without liability except
to account for property actually received by it, but the Collateral Agent shall
have no duty to any Grantor to exercise any such right, privilege or option and
shall not be responsible for any failure to do so or delay in so doing.

 

(c)       Each Grantor hereby
authorizes and instructs each Issuer of Pledged Stock pledged by such Grantor
hereunder to (i) comply with any instruction received by it from the Collateral
Agent in writing that (x) states that an Event of Default has occurred and is
continuing and (y) is otherwise in accordance with the terms of this Agreement,
without any other or further instructions from such Grantor, and each Grantor
agrees that each Issuer shall be fully protected in so complying, and (ii)
unless otherwise expressly permitted hereby, pay any dividends or other
payments with respect to the Pledged Stock directly to the Collateral Agent.
The provisions of this paragraph (c) shall not apply in respect of any Issuer
that is a Regulated Entity unless the Borrower, in its reasonable judgment,
determines that such provisions would not have an adverse regulatory, financial
or accounting effect on such Issuer, and the Borrower agrees to use its best
efforts to make a determination as to whether such provisions would have such
an effect reasonably promptly following the Closing Date or the date on which
the Pledged Stock of such Issuer is pledged hereunder, as the case may be. The
Borrower shall promptly notify the Collateral Agent of any such determination
and if such determination is that such provisions would not have such an effect
cause such Issuer to execute and deliver to the Collateral Agent an
Acknowledgment and Consent in the form of Annex 1 attached hereto.

 

7

 

5.2.      Proceeds to be Turned
Over To Collateral Agent. If an Event of Default shall occur and be
continuing, all Proceeds received by any Grantor consisting of cash, checks and
other near- cash items shall be held by such Grantor in trust for the
Collateral Agent and the Secured Parties, segregated from other funds of such
Grantor, and shall, forthwith upon receipt by such Grantor, be turned over to
the Collateral Agent in the exact form received by such Grantor (duly indorsed
by such Grantor to the Collateral Agent, if required). All Proceeds received by
the Collateral Agent hereunder shall be held by the Collateral Agent in a
Collateral Account maintained under its sole dominion and control. All Proceeds
while held by the Collateral Agent in a Collateral Account (or by such Grantor
in trust for the Collateral Agent and the Secured Parties) shall continue to be
held as collateral security for all the Obligations and shall not constitute
payment thereof until applied as provided in Section 5.3.

 

5.3.      Application of Proceeds.
(a) At such intervals as may be agreed upon by the Borrower and the Collateral
Agent, or, if an Event of Default shall have occurred and be continuing, at any
time at the Collateral Agent’s election, the Collateral Agent may apply all or
any part of Proceeds constituting Collateral, whether or not held in any
Collateral Account in payment of the Obligations in the following order:

 

First,
to all reasonable costs and expenses of every kind incurred in respect thereof
or incidental to the care or safekeeping of any of the Collateral or in any way
relating to the Collateral or the rights of the Collateral Agent and the
Secured Parties hereunder, including, without limitation, reasonable attorneys’
fees and disbursements of counsel to the Collateral Agent;

 

Second,
to the Collateral Agent, for application by it towards payment of amounts then
due and owing and remaining unpaid in respect of the Obligations, pro  rata
among the Secured Parties according to the amounts of the Obligations then due
and owing and remaining unpaid to the Secured Parties;

 

Third,
to the Collateral Agent, for application by it towards prepayment of the
Obligations, pro  rata among the Secured Parties according to the
amounts of the Obligations then held by the Secured Parties; and

 

Fourth,
any balance remaining after the Obligations shall have been paid in full and the
Revolving Commitments shall have terminated shall be paid over to the Borrower
or to whomsoever may be lawfully entitled to receive the same.

 

(b)       For purposes of making the
allocations specified in Section 5.3(a) in respect of IBG Note Obligations, the
Collateral Agent shall rely upon information provided to it by the Borrower.
All payments to the IBG Note Holders hereunder shall be made to an account
notified to the Collateral Agent by the Borrower.

 

5.4.      Code and Other Remedies.
If an Event of Default shall occur and be continuing, the Collateral Agent, on
behalf of the Secured Parties, may exercise, in addition to all other rights
and remedies granted to them in this Agreement and in any other instrument or
agreement securing, evidencing or relating to the Obligations, all rights and
remedies of a secured party under the Code or any other applicable law. Without
limiting the generality of the foregoing, the Collateral Agent, without demand
of performance or other demand, presentment, protest, advertisement or notice
of any kind (except any notice required by law referred to below) to or upon
any Grantor or any other Person (all and each of which demands, defenses,
advertisements and notices are hereby waived), may in such circumstances
forthwith collect, receive, appropriate and realize upon the Collateral, or any
part thereof, and/or may forthwith sell, lease, assign, give option or options
to purchase, or otherwise dispose of and

 

8

 

deliver the Collateral or
any part thereof (or contract to do any of the foregoing), in one or more
parcels at public or private sale or sales, at any exchange, broker’s board or
office of the Collateral Agent or any Secured Party or elsewhere upon such
terms and conditions as it may deem advisable and at such prices as it may deem
best, for cash or on credit or for future delivery without assumption of any
credit risk. The Collateral Agent or any Secured Party shall have the right
upon any such public sale or sales, and, to the extent permitted by law, upon
any such private sale or sales, to purchase the whole or any part of the
Collateral so sold, free of any right or equity of redemption in any Grantor,
which right or equity is hereby waived and released. Each Grantor further
agrees, at the Collateral Agent’s request, to assemble the Collateral and make
it available to the Collateral Agent at places which the Collateral Agent shall
reasonably select, whether at such Grantor’s premises or elsewhere. The
Collateral Agent shall apply the net proceeds of any action taken by it
pursuant to this Section 5.4, after deducting all reasonable costs and expenses
of every kind incurred in connection therewith or incidental to the care or
safekeeping of any of the Collateral or in any way relating to the Collateral
or the rights of the Collateral Agent and the Secured Parties hereunder,
including, without limitation, reasonable attorneys’ fees and disbursements, to
the payment in whole or in part of the Obligations, in such order as the Collateral
Agent may elect, and only after such application and after the payment by the
Collateral Agent of any other amount required by any provision of law,
including, without limitation, Section 9-615(a)(3) of the Code, need the
Collateral Agent account for the surplus, if any, to any Grantor. To the extent
permitted by applicable law, each Grantor waives all claims, damages and
demands it may acquire against the Collateral Agent or any Secured Party
arising out of the exercise by them of any rights hereunder. If any notice of a
proposed sale or other disposition of Collateral shall be required by law, such
notice shall be deemed reasonable and proper if given at least 10 days before
such sale or other disposition.

 

5.5.      Registration Rights.
(a) If the Collateral Agent shall determine to exercise its right to sell any
or all of the Pledged Stock pursuant to Section 5.4, and if in the reasonable
opinion of the Collateral Agent it is necessary or advisable to have the
Pledged Stock, or that portion to be sold, registered under the provisions of
the Securities Act, the relevant Grantor will cause the Issuer thereof to (i)
execute and deliver, and cause the directors and officers of such Issuer to
execute and deliver, all such instruments and documents, and do or cause to be
done all such other acts as may be, in the reasonable opinion of the Collateral
Agent, necessary or advisable to register the Pledged Stock, or that portion
thereof to be sold, under the provisions of the Securities Act, (ii) use its
commercially reasonable efforts to cause the registration statement relating
thereto to become effective and to remain effective for only so long as is
necessary to permit the sale and distribution of the Pledged Stock, or that
portion thereof to be sold, not to exceed a period of one year from the date of
the first public offering of the Pledged Stock, or that portion thereof to be
sold, and (iii) make all amendments thereto and/or to the related prospectus
which, in the opinion of the Collateral Agent, are necessary or advisable, all
in conformity with the requirements of the Securities Act and the rules and
regulations of the Securities and Exchange Commission applicable thereto. Each
Grantor agrees to use its commercially reasonable efforts to cause such Issuer
to comply with the provisions of the securities or “Blue Sky” laws of any and
all jurisdictions which the Collateral Agent shall designate and to make
available to its security holders, as soon as practicable, an earnings
statement (which need not be audited) which will satisfy the provisions of
Section 11(a) of the Securities Act.

 

(b)       Each Grantor recognizes that
the Collateral Agent may be unable to effect a public sale of any or all the
Pledged Stock, by reason of certain prohibitions contained in the Securities
Act and applicable state securities laws or otherwise, and may be compelled to
resort to one or more private sales thereof to a restricted group of purchasers
which will be obliged to agree, among other things, to acquire such securities
for their own account for investment and not with a view to the distribution or
resale thereof. Each Grantor acknowledges and agrees that any such private sale
may result in prices and other terms less favorable than if such sale were a
public sale and, notwithstanding such circumstances, agrees that any such a
private sale shall be deemed to have been made in a

 

9

 

commercially reasonable
manner. The Collateral Agent shall be under no obligation to delay a sale of
any of the Pledged Stock for the period of time necessary to permit the Issuer
thereof to register such securities for public sale under the Securities Act,
or under applicable state securities laws, even if such Issuer would agree to
do so.

 

(c)       Each Grantor agrees to use
its commercially reasonable efforts to do or cause to be done all such other
acts as may be necessary to make such sale or sales of all or any portion of
the Pledged Stock pursuant to this Section 5.5 valid and binding and in
compliance in all material respects with any and all other applicable
Requirements of Law. Each Grantor further agrees that a material breach of any
of the covenants contained in this Section 5.5 will cause irreparable injury to
the Collateral Agent and the Secured Parties, that the Collateral Agent and the
Secured Parties have no adequate remedy at law in respect of such breach and,
as a consequence, that each and every covenant contained in this Section 5.5
shall be specifically enforceable against such Grantor, and such Grantor hereby
waives and agrees not to assert any defenses against an action for specific
performance of such covenants except for a defense that no Event of Default has
occurred under the Credit Agreement.

 

5.6.      Deficiency. Each
Grantor shall remain liable for any deficiency if the proceeds of any sale or
other disposition of the Collateral are insufficient to pay its Obligations and
the fees and disbursements of any attorneys employed by the Collateral Agent or
any Secured Party to collect such deficiency.

 

SECTION 6. THE COLLATERAL AGENT

 

6.1.      Collateral Agent’s
Appointment as Attorney-in-Fact etc. (a) Each Grantor hereby irrevocably
constitutes and appoints the Collateral Agent and any officer or agent thereof,
with full power of substitution, as its true and lawful attorney-in-fact with
full irrevocable power and authority in the place and stead of such Grantor and
in the name of such Grantor or in its own name, for the purpose of carrying out
the terms of this Agreement, to take any and all appropriate action and to
execute any and all documents and instruments which may be necessary or
desirable to accomplish the purposes of this Agreement, and, without limiting
the generality of the foregoing, each Grantor hereby gives the Collateral Agent
the power and right, on behalf of such Grantor, without notice to or assent by
such Grantor, to do any or all of the following:

 

(i)        in the name of such Grantor
or its own name, or otherwise, take possession of and indorse and collect any
checks, drafts, notes, acceptances or other instruments for the payment of
moneys due with respect to the Collateral and file any claim or take any other
action or proceeding in any court of law or equity or otherwise deemed
appropriate by the Collateral Agent for the purpose of collecting any and all
such moneys due with respect to the Collateral whenever payable;

 

(ii)       pay or discharge taxes and
Liens levied or placed on or threatened against the Collateral, effect any
repairs or any insurance called for by the terms of this Agreement and pay all
or any part of the premiums therefor and the costs thereof;

 

(iii)      execute, in connection with
any sale provided for in Section 5.4 or 5.5, any indorsements, assignments or
other instruments of conveyance or transfer with respect to the Collateral; and

 

(iv)      (1) direct any party liable
for any payment under any of the Collateral to make payment of any and all
moneys due or to become due thereunder directly to the Collateral Agent or as
the Collateral Agent shall direct; (2) ask or demand for, collect, and receive
payment of and

 

10

 

receipt for, any and all
moneys, claims and other amounts due or to become due at any time in respect of
or arising out of any Collateral; (3) commence and prosecute any suits, actions
or proceedings at law or in equity in any court of competent jurisdiction to
collect the Collateral or any portion thereof and to enforce any other right in
respect of any Collateral; (4) defend any suit, action or proceeding brought
against such Grantor with respect to any Collateral; (5) settle, compromise or
adjust any such suit, action or proceeding and, in connection therewith, give
such discharges or releases as the Collateral Agent may deem appropriate; and
(6) generally, sell, transfer, pledge and make any agreement with respect to or
otherwise deal with any of the Collateral as fully and completely as though the
Collateral Agent were the absolute owner thereof for all purposes, and do, at
the Collateral Agent’s option and such Grantor’s expense, at any time, or from
time to time, all acts and things which the Collateral Agent deems necessary to
protect, preserve or realize upon the Collateral and the Collateral Agent’s and
the Secured Parties’ security interests therein and to effect the intent of
this Agreement, all as fully and effectively as such Grantor might do.

 

Anything in this Section
6.1(a) to the contrary notwithstanding, the Collateral Agent agrees that it
will not exercise any rights under the power of attorney provided for in this
Section 6.1(a) unless an Event of Default shall have occurred and be
continuing.

 

(b)       If any Grantor fails to
perform or comply with any of its agreements contained herein, the Collateral
Agent, at its option, but without any obligation so to do, may perform or
comply, or otherwise cause performance or compliance, with such agreement.

 

(c)       The expenses of the
Collateral Agent incurred in connection with actions undertaken as provided in
this Section 6.1, together with interest thereon at a rate per annum equal to
the highest rate per annum at which interest would then be payable on any
category of past due ABR Loans under the Credit Agreement, from the date of
payment by the Collateral Agent to the date reimbursed by the relevant Grantor,
shall be payable by such Grantor to the Collateral Agent on demand.

 

(d)       Each Grantor hereby ratifies
all that said attorneys shall lawfully do or cause to be done by virtue hereof.
All powers, authorizations and agencies contained in this Agreement are coupled
with an interest and are irrevocable until this Agreement is terminated and the
security interests created hereby are released.

 

6.2.      Duty of Collateral Agent.
The Bank Agent hereby appoints the Collateral Agent to act as collateral agent
for the Lenders as set forth herein, and by its purchase of an IBG Note, each
IBG Note Holder will be deemed to have appointed the Collateral Agent to act as
collateral agent for the IBG Note Holders as set forth herein. Subject to the
other provisions hereof, the Collateral Agent hereby acknowledges that it has
accepted such appointment. The Collateral Agent’s sole duty with respect to the
custody, safekeeping and physical preservation of the Collateral in its
possession, under Section 9-207 of the Code or otherwise, shall be to deal with
it in the same manner as the Collateral Agent deals with similar property for
its own account. Neither the Collateral Agent, any Secured Party, any Affiliate
of any Secured Party nor any of their respective officers, directors, employees
or agents shall be liable for failure to demand, collect or realize upon any of
the Collateral or for any delay in doing so or shall be under any obligation to
sell or otherwise dispose of any Collateral upon the request of any Grantor or
any other Person or to take any other action whatsoever with regard to the
Collateral or any part thereof. The powers conferred on the Collateral Agent
and the Secured Parties hereunder are solely to protect the Collateral Agent’s
and the Secured Parties’ interests in the Collateral and shall not impose any
duty upon the Collateral Agent or any Secured Party to exercise any such
powers. The Collateral Agent and the Secured Parties shall be accountable only
for amounts that they actually receive as a result of the exercise of such
powers, and neither they nor any of their officers, directors, employees or
agents shall be

 

11

 

responsible to the
Grantors for any act or failure to act hereunder, except for their own gross
negligence or willful misconduct. The parties hereto agree that the Collateral
Agent, in its capacity as such, shall have all the benefits, rights and
indemnification accorded the Bank Agent as set forth in Article VIII of the
Credit Agreement to the same extent as if the provisions thereof were set forth
herein mutatis  mutandis (it being understood that nothing in this
Agreement or any other Loan Document shall be deemed to obligate the IBG Note
Holders to make payments on account of, or create any liability in respect of
or recourse to them under, any such indemnification provisions, and the IBG
Note Holders are not parties to any agreement providing any of the foregoing
obligations, liabilities or recourse).

 

6.3.      Execution of Financing
Statements. Pursuant to any applicable law, each Grantor authorizes the
Collateral Agent to file or record financing statements and other filing or
recording documents or instruments with respect to the Collateral without the
signature of such Grantor in such form and in such offices as the Collateral
Agent determines appropriate to perfect the security interests of the
Collateral Agent under this Agreement. Each Grantor authorizes the Collateral
Agent to use the collateral description “all personal property” in any such
financing statements. Each Grantor hereby ratifies and authorizes the filing by
the Collateral Agent of any financing statement with respect to the Collateral
made prior to the date hereof.

 

6.4.      Authority of Collateral
Agent. Each Grantor acknowledges that the rights and responsibilities of
the Collateral Agent under this Agreement with respect to any action taken by
the Collateral Agent or the exercise or non-exercise by the Collateral Agent of
any option, voting right, request, judgment or other right or remedy provided
for herein or resulting or arising out of this Agreement shall, as between the
Collateral Agent and the Lenders, be governed by the Credit Agreement and by
such other agreements with respect thereto as may exist from time to time among
them, but, as between the Collateral Agent and the Grantors, the Collateral
Agent shall be conclusively presumed to be acting as agent for the Secured
Parties with full and valid authority so to act or refrain from acting, and the
Grantors shall not be under any obligation, or entitlement, to make any inquiry
respecting such authority.

 

SECTION
7. MISCELLANEOUS

 

7.1.      Amendments in Writing.
None of the terms or provisions of this Agreement may be waived, amended,
supplemented or otherwise modified except in accordance with Section 9.1 of the
Credit Agreement; provided that (A) in no event shall Section 5.3(a)
hereof be waived, amended, supplemented or otherwise modified without the
consent of the Bank Agent and (B) no amendment (x) to Section 5.3 (a) or the
definition of “Obligations” or “IBG Note Obligations” that changes, in a manner
materially adverse to the interests of the IBG Note Holders, the pari  passu
application of payments between the IBG Note Obligations and the Bank
Obligations as set forth therein or (y) this clause (B) shall become effective
until the earlier of (1) the first date thereafter upon which no IBG Note
Obligations are outstanding and (2) the date on which consent thereto of the
IBG Note Holders so affected has been obtained (it being understood that
neither changes to the amount or nature of the Bank Obligations, the addition
of obligations to the definition of “Obligations”, nor the addition of or
modification to items set forth in Section 5.3(a) other than clauses (ii) and
(iii) thereof shall constitute a change subject to the foregoing effectiveness
provision).

 

7.2.      Notices. All notices,
requests and demands to or upon the Collateral Agent, the Bank Agent or any
Grantor hereunder shall be effected in the manner provided for in Section 9.2
of the Credit Agreement; provided that any such notice, request or
demand to or upon (i) any Grantor shall be addressed to such Grantor at its
notice address set forth on Schedule 1 and (ii) the Collateral Agent or
the

 

12

 

Bank Agent shall be
addressed to such party at JPMorgan Chase Bank, N.A., 1111 Fannin Street, Floor
10, Houston, TX 77002, Attention: Heba Ahmad (Telecopy: 713-750-2223;
Telephone: 713-750-3512).

 

7.3.      No Waiver by Course of Conduct;
Cumulative Remedies. Neither the Collateral Agent nor any Secured Party
shall by any act (except by a written instrument pursuant to Section 7.1),
delay, indulgence, omission or otherwise be deemed to have waived any right or
remedy hereunder or to have acquiesced in any Default or Event of Default. No
failure to exercise, nor any delay in exercising, on the part of the Collateral
Agent or any Secured Party, any right, power or privilege hereunder shall
operate as a waiver thereof. No single or partial exercise of any right, power
or privilege hereunder shall preclude any other or further exercise thereof or
the exercise of any other right, power or privilege. A waiver by the Collateral
Agent or any Secured Party of any right or remedy hereunder on any one occasion
shall not be construed as a bar to any right or remedy which the Collateral
Agent or such Secured Party would otherwise have on any future occasion. The
rights and remedies herein provided are cumulative, may be exercised singly or
concurrently and are not exclusive of any other rights or remedies provided by
law.

 

7.4.      Successors and Assigns.
This Agreement shall be binding upon the successors and assigns of each Grantor
and shall inure to the benefit of the Collateral Agent and the Secured Parties
and their successors and assigns; provided that no Grantor may assign,
transfer or delegate any of its rights or obligations under this Agreement
without the prior written consent of the Collateral Agent.

 

7.5.      Counterparts. This
Agreement may be executed by one or more of the parties to this Agreement on
any number of separate counterparts (including by telecopy), and all of said
counterparts taken together shall be deemed to constitute one and the same
instrument.

 

7.6.      Severability. Any
provision of this Agreement which is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

 

7.7.      Section Headings. The
Section headings used in this Agreement are for convenience of reference only
and are not to affect the construction hereof or be taken into consideration in
the interpretation hereof.

 

7.8.      Integration. This
Agreement, the outstanding IBG Notes, the Offering Memorandum and the other
Loan Documents to which the Grantors are party represent the agreement of the
Grantors and the Secured Parties with respect to the subject matter hereof and
thereof, and there are no promises, undertakings, representations or warranties
by any Secured Party relative to the subject matter hereof and thereof not
expressly set forth or referred to herein or therein.

 

7.9.
GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

7.10.    Submission To Jurisdiction;
Waivers. Each party to this Agreement hereby irrevocably and
unconditionally:

 

(a)       submits for itself and its
property in any legal action or proceeding relating to this Agreement and the
other Loan Documents to which it is a party, or for recognition and enforcement
of any judgment in respect thereof, to the non-exclusive general jurisdiction
of the courts of the State of New

 

13

 

York, the courts of the
United States of America for the Southern District of New York, and appellate
courts from any thereof;

 

(b)       consents that any such
action or proceeding may be brought in such courts and waives any objection
that it may now or hereafter have to the venue of any such action or proceeding
in any such court or that such action or proceeding was brought in an
inconvenient court and agrees not to plead or claim the same;

 

(c)       agrees that service of
process in any such action or proceeding may be effected by mailing a copy
thereof by registered or certified mail (or any substantially similar form of mail),
postage prepaid, to such Grantor at its address referred to in Section 7.2 or
at such other address of which the Collateral Agent shall have been notified
pursuant thereto;

 

(d)       agrees that nothing herein
shall affect the right to effect service of process in any other manner
permitted by law or shall limit the right to sue in any other jurisdiction; and

 

(e)       waives,
to the maximum extent not prohibited by law, any right it may have to claim or
recover in any legal action or proceeding referred to in this Section any
special, exemplary, punitive or consequential damages.

 

7.11.    Acknowledgments. Each
Grantor hereby acknowledges that:

 

(a)       it has been advised by
counsel in the negotiation, execution and delivery of this Agreement and the
other Loan Documents to which it is a party;

 

(b)       neither the Collateral Agent
nor any other Secured Party has any fiduciary relationship with or duty to any
Grantor arising out of or in connection with this Agreement or any of the other
Loan Documents, and the relationship between the Grantors, on the one hand, and
the Collateral Agent and the Secured Parties, on the other hand, in connection
herewith or therewith is solely that of debtor and creditor; and

 

(c)       no joint venture is created
hereby or by the other Loan Documents or otherwise exists by virtue of the
transactions contemplated hereby among the Secured Parties or among the
Grantors and the Secured Parties.

 

7.12.    Additional Grantors.
Each Subsidiary of the Borrower that is required to become a party to this
Agreement pursuant to Section 5.8 of the Credit Agreement shall become a
Grantor for all purposes of this Agreement upon execution and delivery by such
Subsidiary of an Assumption Agreement in the form of Annex 2 hereto.

 

7.13.    Releases. (a) At such
time as the Borrower Obligations (other than Borrower Obligations in respect of
Specified Swap Agreements) and the IBG Note Obligations (to the extent that
other indebtedness has been secured by the Pledged Stock on an equal and
ratable basis under the IBG Notes) shall have been paid in full and the
Revolving Commitments have been terminated, the Collateral shall be released
from the Liens created hereby, and this Agreement and all obligations (other
than those expressly stated to survive such termination) of the Collateral
Agent and each Grantor hereunder shall terminate, all without delivery of any
instrument or performance of any act by any party, and all rights to the
Collateral shall revert to the Grantors. Following any such termination, each
Grantor is hereby authorized to file UCC termination statements without the
signature of the Collateral Agent or any Secured Party. At the sole expense of
any Grantor following any such termination, the Collateral Agent shall deliver
to such Grantor, or to any other Person reasonably believed by the Collateral
Agent to be

 

14

 

entitled thereto, any
Collateral held by the Collateral Agent hereunder, and execute and deliver to
such Grantor, or such other Person, such documents as such Grantor, or such
other Person, shall reasonably request to evidence such termination.

 

(b)       If any of the Collateral
shall be sold, transferred or otherwise disposed of by any Grantor in a
transaction permitted by each of the Credit Agreement and the IBG Notes, then
the Collateral Agent, at the request and sole expense of such Grantor, shall
execute and deliver to such Grantor all releases or other documents reasonably
necessary or desirable for the release of the Liens created hereby on such Collateral.
At the request and sole expense of the Borrower, a Grantor shall be released
from its obligations hereunder in the in the event that all the Capital Stock
of such Grantor shall be sold, transferred or otherwise disposed of in a
transaction permitted by each of the Credit Agreement and the IBG Notes; provided
that the Borrower shall have delivered to the Collateral Agent, at least ten
days prior to the date of the proposed release, a written request for release
identifying the relevant Grantor and the terms of the sale or other disposition
in reasonable detail, including the price thereof and any expenses in
connection therewith, together with a certification by the Borrower stating
that such transaction is in compliance with each of the Credit Agreement and
the other Loan Documents and the IBG Notes.

 

7.14.    Limitation on Collateral
Agent’s Responsibilities with Respect to IBG Note Holders, (a) The
obligations of the Collateral Agent to the IBG Note Holders hereunder shall be
limited solely to (i) holding the Collateral for the ratable benefit of the IBG
Note Holders for so long as (A) any IBG Note Obligations remain outstanding and
(B) any IBG Note Obligations are secured by such Collateral, (ii) subject to
the instructions of the Required Lenders or the Required Note Holders,
enforcing the rights of the IBG Note Holders in their capacities as Secured
Parties in respect of Collateral and (iii) distributing any proceeds received
by the Collateral Agent from the sale, collection or realization of the Collateral
to the IBG Note Holders in respect of the IBG Note Obligations in accordance
with the terms of this Agreement. The IBG Note Holders shall not be entitled to
exercise (or direct the Collateral Agent to exercise) any rights or remedies
hereunder with respect to the IBG Note Obligations, including without
limitation, the right to receive any payments, enforce their security interest
in the Collateral, request any action, institute proceedings, give any
instructions, make any election, make collections, sell or otherwise foreclose
on any portion of the Collateral or execute any amendment, supplement, or
acknowledgment hereof, except that the Required Note Holders may, upon the
occurrence and during the continuance of an Event of Default under any of the
IBG Notes, direct the Collateral Agent to enforce the security interest in the
Collateral or otherwise exercise its rights and remedies hereunder, provided
that (x) the Collateral Agent shall be entitled to be, subject to Section 8.7
of the Credit Agreement, first indemnified and exculpated to its satisfaction
by or on behalf of the IBG Note Holders before it is required to take any
action to so enforce its security interest or otherwise exercise its rights and
remedies and (y), in the event of a conflict between any direction received by
it from the Required Lenders or on their behalf and any direction from the
Required Note Holders, the Collateral Agent shall be entitled to take no action
or to exercise its own judgment in its sole discretion after consulting with
representatives thereof. This Agreement shall not create any liability of the
Collateral Agent or the Lenders to the IBG Note Holders by reason of actions
taken with respect to the creation, perfection or continuation of the security
interest in the Collateral, actions with respect to the occurrence of an Event
of Default, actions with respect to the foreclosure upon, sale, release, or
depreciation of, or failure to realize upon, any of the Collateral or action
with respect to the collection of any claim for all or any part of the IBG Note
Obligations from any party or the valuation, use or protection of the
Collateral. By acceptance of the benefits under this Agreement, the IBG Note
Holders will be deemed to have acknowledged and agreed that the provisions of
the preceding sentence are intended to induce the Lenders to permit such
Persons to be Secured Parties under this Agreement and are being relied upon by
the Lenders as consideration therefor.

 

(b)       The Collateral Agent shall
not be required to ascertain or inquire as to the performance by the Borrower
of the IBG Note Obligations.

 

15

 

(c)       The Collateral Agent may
execute any of the powers granted under this Agreement and perform any duty
hereunder either directly or by or through agents or attorneys-in-fact, and
shall not be responsible for the gross negligence or willful misconduct of any
agents or attorneys-in-fact selected by it with reasonable care and without
gross negligence or willful misconduct.

 

(d)       The Collateral Agent shall
not be deemed to have actual, constructive, direct or indirect notice or
knowledge of the occurrence of any Event of Default unless and until the
Collateral Agent shall have received a notice of Event of Default or a notice
from a Grantor or the Secured Parties to the Collateral Agent in its capacity
as Collateral Agent indicating that an Event of Default has occurred. The
Collateral Agent shall have no obligation either prior to or after receiving
such notice to inquire whether an Event of Default has, in fact, occurred and
shall be entitled to rely conclusively, and shall be fully protected in so
relying, on any notice so furnished to it.

 

(e)       Notwithstanding anything to
the contrary herein, nothing in this Agreement shall or shall be construed to
(i) result in the security interest in the Collateral not securing the IBG Note
Obligations less than equally and ratably with the Borrower Obligations
pursuant to the Offering Memorandum to the extent required or (ii) modify or
affect the rights of the IBG Note Holders to receive the pro  rata share specified in Section 5.3(a)
of any proceeds of any collection or sale of the Collateral.

 

(f)        The parties hereto agree
that the IBG Note Obligations and the Borrower Obligations are, and will be,
equally and ratably secured with each other by the Liens on the Collateral, and
that it is their intention to give full effect to the equal and ratable
provisions of the Offering Memorandum, as in effect on the date hereof.

 

7.15.    WAIVER OF JURY TRIAL. EACH GRANTOR HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING
TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

 

7.16.    Grantors.
Notwithstanding anything contained in this Agreement to the contrary, no
Foreign Subsidiary or Excluded Regulated Subsidiary shall be deemed to be a
Grantor hereunder.

 

16

 

IN WITNESS
WHEREOF, each of the undersigned has caused this Pledge and Collateral Agency
Agreement to be duly executed and delivered as of the date first above written.

 

	
   

  	
   

  	
  INTERACTIVE BROKERS
  GROUP LLC

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Paul J. Brody

  	
   

  
	
   

  	
   

  	
  Title: Chief Financial
  Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  JPMORGAN CHASE BANK,
  N.A.,

  as Collateral Agent and as Bank Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Robert Anastasio

  	
   

  
	
   

  	
   

  	
  Title: Vice President

  	
   

  

 

 

SIGNATURE PAGE TO PLEDGE
AND COLLATERAL AGENCY AGREEMENT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}]]