Document:

Exhibit 10.3.2

AMENDED AND
RESTATED

INVESTMENT TECHNOLOGY GROUP, INC.

NON-EMPLOYEE DIRECTORS’ STOCK OPTION PLAN

1. Purpose.
The purpose of this Amended and Restated Non-Employee Directors’ Stock
Option Plan (the “Plan”) of Investment Technology Group, Inc. (the “Company”)
is to promote ownership by eligible non-employee Directors of a greater
proprietary interest in the Company, thereby aligning such Directors’ interests
more closely with the interests of stockholders of the Company, and to assist
the Company in attracting and retaining highly qualified persons to serve as
non-employee Directors.

2. Definitions.
In addition to terms defined in Section 1 of the Plan, the following are
defined terms under the Plan:

(a) ‘Code”
means the Internal Revenue Code of 1986, as amended. References to any
provision of the Code shall be deemed to include successor provisions thereto-
and rules and regulations thereunder.

(b) “Exchange
Act” means the Securities Exchange Act of 1934, as amended. References to any
provision of the Exchange Act shall be deemed to include successor provisions
thereto and rules and regulations thereunder.

(c) “Fair
Market Value” of Stock means the closing sales price of a share of Stock on the
date on which such value is to be determined, as reported for such day on the
New York Stock Exchange, or, if no sales of Stock were reported for such date,
such closing sales price on the last preceding date on which a sale of Stock
was reported on the New York Stock Exchange.

(d) “Option”
means the right, granted to a Participant under Section 6, to purchase Stock at
the specified exercise price for a specified period of time under the Plan.
Options granted under the Plan will be “non­qualified stock options” and not “incentive
stock options” qualifying under Section 422 of the Code.

(e) “Participant”
means a Director who has been granted one or more Options which are exercisable
or may become exercisable under the Plan.

(f) “Stock”
means the Common Stock, $.01 par value, of the Company and such other securities
as may be substituted for Stock or such other securities pursuant to Section 7.

3. Shares
Available Under the Plan. The total number of shares of Stock reserved and
available for delivery under the Plan is 557,050 (subject to adjustment under
Section 7). 307,050 shares to be delivered under the Plan may be authorized but
unissued shares or treasury shares, as determined by the General Counsel, and
250,000 shares to be delivered under the Plan shall be exclusively treasury
shares. If any Option expires or terminates for any reason without having been
exercised in full, the unpurchased shares subject to such Option will again be
available for delivery under the Plan.

4. Administration
of the Plan. The Plan will be administered by the Board of Directors of the
Company; provided, however, that any action by the Board of
Directors relating to the Plan will be taken only if, in addition to any other
required vote, approved by the affirmative vote of a majority of the Directors
who are not then eligible to participate in the Plan. Ministerial tasks in
connection with the Plan will be performed by executive officers of the
Company.

5. Eligibility.
Each Director of the Company who, on any date on which an Option is to be
granted hereunder, is not, and has not been during the preceding three months,
(i) an employee of the Company or any parent or subsidiary of the Company or
(ii) a consultant who has received, during the preceding 12-month period,
payments in excess of $150,000 from the Company and its subsidiaries for
consulting services, will be eligible to receive a grant of an Option at such
date. No person other than those specified in this Section 5 may be granted an
Option under the Plan.

6. Options.
An Option to purchase 24,564 shares of Stock (subject to adjustment under
Section 7) will be granted under the Plan to each person who, after the
effective date of the Plan, is first elected or appointed to serve as a
Director of the Company, such grant to be effective at the date of such first
election or appointment, if such Director is then eligible to receive an Option
grant. In addition, an Option to purchase 6,141 shares of Stock (subject to
adjustment under Section 7) will be granted, on the 45th day following the
Company’s Annual Meeting of Stockholders at which Directors (or a class of
Directors if the Company then has a classified Board of Directors) are elected
or reelected by the Company’s stockholders, each year to each Director of the
Company

who is then
eligible to receive an Option grant; provided, however that no
such grant will be made to a person first elected or appointed to serve as a
Director of the Company after the date of such Annual Meeting of Stockholders.
Options granted under the Plan will be subject to the following terms and
conditions:

(a) Exercise
Price. The exercise price per share of Stock purchasable under an Option
will be equal to 100% of the Fair Market Value of Stock on the date of grant of
the Option.

(b) Option
Term. Each Option will expire five years after the date of grant; provided,
however, if the Participant ceases to serve as a Director of the Company
prior to five years after the date of grant, the Option will expire as follows
(except as otherwise provided in Section 9(d)): (i) if the Participant ceases
to serve as a Director of the Company due to death, disability, or retirement
at or after age 65, 12 months after such cessation of service, but in no event
later than five years after the date of grant; and (ii) if the Participant
ceases to serve as a Director of the Company for any reason other than due to
death, disability, or retirement at or after age 65, at the date 60 days after
such cessation of service, but in no event later than five years after the date
of grant.

(c) Exercisability.
Each Option will become fully exercisable beginning three months after the date
of grant, and will thereafter remain exercisable until the Option expires; provided,
however, that a Participant’s Option will be exercisable after the
Participant ceases to serve as a Director of the Company for any reason other
than death, disability, or retirement at or after age 65 only if the Option was
granted at least three months prior to such cessation of service.

(d) Method
of Exercise. A Participant (or other person entitled to exercise an Option)
may exercise an Option, in whole or in part, at such time as it is exercisable
and prior to its expiration by giving written notice of exercise to the Company
specifying the Option to be exercised and the number of shares to be purchased,
and paying in full the exercise price in cash (including by check) or by
surrender of shares of Stock acquired by the Participant prior to the exercise
date and having a Fair Market Value at the time of exercise equal to the
exercise price, or a combination of a cash payment and surrender of such Stock;
provided, however that shares previously acquired by exercise of
a stock option or upon lapse of restrictions on restricted stock granted by the
Company may be surrendered under this Section 6(d) only if such shares have been
held by the Director for at least six months.

7. Adjustment
Provisions. In the event any recapitalization, reorganization, merger,
consolidation, spin-off, combination, repurchase, exchange of shares or
other securities of the Company, stock split or reverse split, stock dividend,
other large, special and non-recurring dividend having a value in excess of
150% of the aggregate quarterly dividends paid during the preceding 12-month
period, liquidation, dissolution, or other similar corporate transaction or
event affects the Stock such that an adjustment is determined by the Board of
Directors to be appropriate in order to prevent dilution or enlargement of
Participants’ rights under the Plan, then the Board of Directors will, in a
manner that is proportionate to the change to the Stock and is otherwise
equitable, adjust (i) the number and kind of shares of Stock reserved and
available for future issuance under the Plan, (ii) the number and kind of
shares of Stock to be subject to each automatic grant of Options under Section
6, and (iii) the number and kind of shares of Stock issuable upon exercise of
outstanding Options, and/or the exercise price per share thereof. The foregoing
notwithstanding, no adjustment may be made hereunder except as shall be necessary
to preserve, without exceeding, the value of outstanding Options and potential
grants of Options. If at any grant date an insufficient number of shares are
available under the Plan for the automatic grant of Options at that date,
Options will be automatically granted under Section 6 proportionately to
Participants to the extent shares are available. Other provisions of this
Section 7 notwithstanding, no fractional shares will be issued upon exercise of
any Option.

8. Changes
to the Plan. The Board of Directors may amend, alter, suspend, discontinue,
or terminate the Plan or authority to grant Options under the Plan without the
consent of stockholders or Participants, except that any such action will be
subject to the approval of the Company’s stockholders at the next, annual
meeting of stockholders having a record date after the date such action was
taken if such stockholder approval is required by any federal or state law or
regulation or the rules of any automated quotation system or securities exchange
on which the Stock may then be quoted or listed, or if the Board of Directors
determines in its discretion to seek such stockholder approval; provided,
however, that, without the consent of an affected Participant, no such
action may materially impair the rights of such Participant with respect to any
previously granted Option.

9. General
Provisions.

(a) Consideration
for Grants; Agreements. Options will be granted under the Plan in considera­tion
of the services of Participants and, except for the payment of the Option
exercise price, no other consideration shall be required therefor. Grants of
Options will be evidenced by agreements executed by the Company and the
Participant containing the terms and conditions set forth in the Plan together
with such other terms and conditions not inconsistent with the Plan as the
Board of Directors may from time to time approve.

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(b) Compliance
with Laws and Obligations. The Company will not be obligated to issue Stock
in connection with any Option in a transaction subject to the registration
requirements of the Securities Act of 1933, as amended, or any state securities
law, any requirement under any listing agreement between the Company and any
automated quotation system or securities exchange, or any other law, regulation,
or contractual obligation, until the Company is satisfied that such laws,
regulations, and other obligations of the Company have been complied with in
full. Certificates representing shares of Stock issued under the Plan will be
subject to such stop-transfer orders and other restrictions as may be
applicable under such laws, regulations, and other obligations of the Company,
including any requirement that a legend or legends be placed thereon.

(c) Non-transferability.
Options and any other right under the Plan will not be transferable by a
Participant except by will or the laws of descent and distribution (or to a
designated beneficiary in the event of a Participant’s death), and will be
exercisable during the lifetime of a Participant only by such Participant or
his or her guardian or legal representative, except to the extent specifically
approved by the Board or a committee thereof to facilitate the Participant’s
estate planning.

(d) Continued
Service as an Employee.  If a
Participant ceases serving as a Director and, immedi­ately thereafter, he is
employed by the Company or any subsidiary, then, solely for purposes of
Sections 6(b) and (c) of the Plan, such Participant will not be deemed to have
ceased service as a Director at that time, and his or her continued employment
by the Company or any subsidiary will be deemed to be continued service as a
Director; provided, however, that such former Director will not be
eligible for additional grants of Options under the Plan.

(e) No
Right to Continue as a Director, Other Compensation. Nothing contained in
the Plan or any agreement hereunder will confer upon any Participant any right
to continue to serve as a Director of the Company. Nothing contained in the
Plan or any agreement hereunder will preclude the Company from paying other
compensation to Directors, including grants of options and stock-related
awards under other plans and arrangements.

(f) No
Stockholder Rights Conferred. Nothing contained in the Plan or any
agreement hereunder will confer upon any Participant any rights of a
stockholder of the Company unless and until an Option is duly exercised
hereunder.

(h) Governing
Law. The validity, construction, and effect of the Plan and any agreement
hereunder will be determined in accordance with the laws of the State of
Delaware and applicable federal law.

10. Effective
Date and Duration of Plan. The Plan became effective on June 28, 1995,  and this amendment and restatement of the
Plan became effective May 15, 2002. Unless earlier terminated by action of the
Board of Directors, the Plan will remain in effect until such time as no Stock
remains available for issuance under the Plan and the Company has no further
rights or obligations with respect to outstanding Options under the Plan.

Adopted by the
Board of Directors: June 28, 1995

Amended by the Board of Directors: August 4, 1999

Amended and restated by the Board of0 Directors:   May 21, 2002

 3Exhibit 10.3.7

STOCK OPTION AGREEMENT

This Stock Option Agreement (the “Agreement”) is entered
into as of                     ,
2004, among Investment Technology Group, Inc., a Delaware corporation (the “Company”)
and                     ,
a member of the Board of Directors of the Company (the “Participant”).

WHEREAS, the Board of Directors of the Company has
approved the Company’s Non-Employee Directors Stock Option Plan (the “Plan”),
pursuant to which members of the Board of Directors who are not employed by the
Company or by any subsidiary or parent of the Company are entitled to receive
certain automatic grants of options to purchase shares of the Company’s Common
Stock.

WHEREAS, the Participant is a member of the Board of
Directors who is not employed by the Company or a subsidiary or parent of the
Company and is not otherwise ineligible to participate in the Plan.

NOW THEREFORE, the parties agree as follows:

Section 1.  Grant
of Option.

1.1  The Company
hereby grants to the Participant a nonqualified stock option (the “Option”) to
purchase               
shares of the Company’s Common Stock (the “Stock”), for a price per share of $        
(the “Option Price”).  The Option is
intended to be a nonqualified stock option and shall not be treated as an incentive
stock option under the provisions of the Code.

1.2.  The Option
is granted under the Plan.  All of the
terms and conditions of the Plan are hereby incorporated by reference in this
Agreement as though fully set forth herein. 
Terms defined in the Plan but not in this Agreement shall have the
meanings set forth in the Plan.  To the
extent of any conflict between the provisions of this Agreement and those of
the Plan, the provisions of the Plan shall govern.  The Participant acknowledges receipt of a copy
of the Plan, accepts the Option subject to the terms and conditions set forth
in the Plan and this Agreement and consents to and agrees to comply with such
terms and conditions.

1.3.  This
Option is granted for no consideration other than the services of the
Participant as a member of the Board of Directors and the Participant’s
agreements set forth herein.

1.4.  It is
intended that the grant of the Option be exempt from the provisions of Section
16(b) of the Exchange Act pursuant to the provisions of Rule 16b-3.

Section 2.  Terms
of Option.

2.1.  The Option
(to the extent not earlier exercised or forfeited) will expire at 5:00 p.m.,
Eastern time on              ,
2009; provided, however, if the Participant ceases to serve as a Director of
the Company prior to such date, except as otherwise provided in Section 9(d) of
the Plan, the Option will expire as follows: (i) if the Participant ceases to
serve as a Director of the Company due to death, disability or retirement at or
after age 65, the date 12 months after such cessation of service, but in no event
later than                   ,
2009; and (ii) if the Participant ceases to serve as a Director of the Company
for any reason other than due to death, disability or retirement at or after
age 65, at the date 60 days after such cessation of service, but in no event
later than                       ,
2009.

2.2.  The Option
will vest and become exercisable in three equal annual installments, beginning
on the first anniversary of the Grant Date. 
In the event the Participant ceases to serve as a Director of the
Company by reason of death or disability, the Option shall become vested and
exercisable in full at the time of such termination.  In the event the Participant ceases to serve
as a Director of the Company for any other reason, that portion of the Option
that has not yet vested shall be forfeited.

2.3.  Written
notice of exercise of the Option shall be given to the Secretary of the Company
and shall be deemed to have been received either when delivered personally to
the office of the Secretary or at 11:58 p.m. on the date of any U.S. Postal
Service postmark on the notice, whichever is earlier.  Such notice shall be irrevocable and must be
accompanied by the payment of the purchase price as provided in Section 2.4
below.  Upon the exercise of the Option,
the Company will transfer or will cause to be issued a certificate or
certificates for the Common Stock being purchased as promptly as practicable.

2.4.  The
purchase price of Stock purchased by the Participant upon exercise of the
Option (the “Option Shares”) shall be paid in full to the Company at the time
of such exercise in cash (including by check) or by the surrender of Stock
(including the surrender of Option Shares) or a combination thereof; provided,
however, that Stock held for less than six months may be surrendered in payment
or partial payment of the purchase price only with the approval of the Board of
Directors.

Section 3.  Adjustments.  The number and kind of shares purchasable
upon exercise of the Option, and other terms of the Option, shall be
appropriately adjusted, in the discretion of the Board of Directors, in
accordance with Section 7 of the Plan, in order to prevent dilution or
enlargement of the rights of the Participant.

Section 4.  Representations
of Participant.  The Participant
represents and warrants that the Participant is acquiring the Option for his
own account and not with a view to distribution of this Option or the Option
Shares. As a condition to the exercise of the Option, and in the event that the
Option Shares have not yet been registered under the Securities Act of 1933, as
amended (the “Act”) at the time they are issued, the Company may require the
Participant to make any representation and/or warranty to the Company as may, in

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the judgment of counsel to the Company, be required under any
applicable law or regulation, including but not limited to a representation and
warranty that the Option Shares are being acquired only for investment and
without any present intention to sell or distribute such shares if, in the
opinion of counsel for the Company, such a representation is required under the
Act or any other applicable law, regulation or rule of any governmental agency.

Section 5.   Nontransferability.  Neither the Participant nor any other person
shall have any right to commute, sell, assign, transfer, pledge, anticipate,
mortgage or otherwise encumber, transfer, hypothecate or convey the Option,
which Option is, and all rights under this Agreement are, expressly declared to
be unassignable and nontransferable, other than by will or under the laws of
descent and distribution.  No part of the
Option shall be subject to seizure or sequestration for the payment of any
debts, judgments, alimony or separate maintenance owed by the Participant or
any other person, nor be transferable by operation of law in the event of the
Participant’s or any other person’s bankruptcy or insolvency.

Section 6.  Miscellaneous.

6.1  Neither the
Participant nor any other person shall acquire by reason of the Option or the
Option Shares any right in or title to any assets, funds or property of the
Company whatsoever including, without limiting the generality of the foregoing,
any specific funds or assets which the Company, in its sole discretion, may set
aside in anticipation of a liability.  No
trust shall be created in connection with or by the granting of the Option or
the purchase of any Option Shares, and any benefits which become payable
hereunder shall be paid from the general assets of the Company.  The Participant shall have only a contractual
right to the amounts, if any, payable pursuant to this Agreement, unsecured by
any asset of the Company or any of its affiliates.

6.2.  The
Participant authorizes the Company to withhold, in accordance with any
applicable law, from any compensation payable to him any taxes required to be
withheld by federal, state or local law upon the issuance of Option Shares or
the payment of money pursuant to the exercise of the Option.  The Participant may elect to have the Company
withhold Option Shares to pay any applicable withholding taxes resulting from
the exercise of the Option, in accordance with any rules or regulations adopted
by the Board of Directors and then in effect.

6.3.  Shares
issued pursuant to exercise of the Option shall be shares of Stock, the
issuance of which is registered under the Act.

6.4.  The terms
of this Agreement shall be binding upon the executors, administrators, heirs,
successors, transferees and assignees of the Participant and the Company.

6.5.  In any
action at law or in equity to enforce any of the provisions or rights under
this Agreement, including any arbitration proceedings to enforce such
provisions or rights, the unsuccessful party to such litigation or arbitration,
as determined by the court in a

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final judgment or decree, or by the panel of arbitrators in its award,
shall pay the successful party or parties all costs, expenses and reasonable
attorneys’ fees incurred by the successful party or parties (including without
limitation costs, expenses and fees on any appeals), and if the successful
party recovers judgment in any such action or proceeding such costs, expenses
and attorneys’ fees shall be included as part of the judgment.

6.6.  The
Participant agrees to perform all acts and execute and deliver any documents
that may be reasonably necessary to carry out the provisions of this Agreement,
including but not limited to all acts and documents related to compliance with
federal and/or state securities laws.

6.7.  For
convenience, this Agreement may be executed in any number of identical
counterparts, each of which shall be deemed a complete original in itself and
may be introduced in evidence or used for any other purposes without the
production of any other counterparts.

6.8.  This
Agreement, together with the Plan, sets forth the entire agreement between the
parties with reference to the subject matter hereof, and there are no
agreements, understandings, warranties, or representations, written, express or
implied, between them with respect to the Option other than as set forth herein
or therein, all prior agreements, promises, representations and understandings
relative thereto being herein merged.

6.9.  Nothing
expressed or implied herein is intended or shall be construed to confer upon or
give to any person, other than the parties hereto, any right, remedy or claim
under or by reason of this Agreement or of any term, covenant or condition
hereof.

6.10.  This
Agreement may be amended, modified, superseded, canceled, renewed or extended
and the terms or covenants hereof may be waived only by a written instrument
executed by the parties hereto or, in the case of a waiver, by the party
waiving compliance.  Any such written
instrument must be approved by the Board of Directors to be effective as
against the Company.  The failure of any
party at any time or times to require performance of any provision hereof shall
in no manner affect the right at a later time to enforce the same.  No waiver by any party of the breach of any
term or provision contained in this Agreement, whether by conduct or otherwise,
in any one or more instances, shall be deemed to be, or construed as, a further
or continuing waiver of any such breach, or a waiver of the breach of any other
term or covenant contained in this Agreement.

6.11.  Any
notice to be given hereunder shall be in writing and delivered personally or
sent by registered or certified mail, postage prepaid, and, if to the Company,
addressed to it at 380 Madison Avenue, Fourth Floor, New York, New York 10017,
Attention: Secretary, and, if to the Participant, addressed to him at the
address set forth below his signature hereto, or to such other address of such
party as that party may designate by written notice to the other.

6.12.  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

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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.

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

	
  

  	
  INVESTMENT TECHNOLOGY GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Raymond L. Killian, Jr.,

  
	
   

  	
   

  	
  Title: Chairman

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  {Insert
  Name of Director}

  
	
   

  	
   

  
	
   

  	
  Address for
  Notices:

  

 

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