Document:

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                                                                   Exhibit 10.26

                                LICENSE AGREEMENT

            This LICENSE AGREEMENT is entered as of this ___th day of May, 2001
(the "Effective Date"), by and between Instinet Global Services Limited, a
United Kingdom corporation, with offices at __________________________________
("Instinet"), and Reuters Limited, a company organized under the laws of
England and Wales, with offices at 85 Fleet Street, London EC4P 4AJ, United
Kingdom ("Reuters").

                                   WITNESSETH:

            WHEREAS, Instinet, a subsidiary of Reuters as of the Effective Date,
operates a unique fixed-income brokerage system referred to as the FIM System
that incorporates a number of different software applications that link
professional market participants around the world via a private global computer
network or intranet; and

            WHEREAS, in light of the possibility that Reuters may divest a
portion of its ownership interest in Instinet at some point in the future,
Reuters desires to receive a license to use certain intellectual property rights
of Instinet relating to such system, and Instinet desires to grant Reuters such
a license, in each case on the terms and subject to the conditions contained
herein.

            NOW, THEREFORE, in consideration of the mutual covenants and
promises contained herein, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Parties (as
defined herein) hereto agree as follows:

                                   ARTICLE I

                                   DEFINITIONS

            1.1   Construction. All references in this Agreement (as defined
herein) to the "Preamble", "Recitals", "Articles", "Sections" and "Schedules"
refer to the preamble, recitals, articles, sections, and schedules to this
Agreement. As used in this Agreement, all terms used in the singular shall be
deemed to include the plural, and vice versa, as the context may require. The
words "hereof", "herein" and "hereunder" and other words of similar import refer
to this Agreement as a whole, including the Schedules hereto, as the same may
from time to time be amended or supplemented and not to any subdivision
contained in this Agreement. The words "including", "include" and "includes" are
not intended to be exclusive and are deemed to be followed by the words "without
limitation". Unless the context requires otherwise, derivative forms of any term
defined herein shall have a comparable meaning to that of such term.

            1.2   Capitalized Terms. The following capitalized terms will have
the meanings provided below:

            (a)   "Action" means any claim, action, suit, case, litigation,
arbitration, inquiry or proceeding.
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            (b)   "Affiliate" means, with respect to any specified Person, any
other Person that directly or indirectly through one or more intermediaries,
controls, is controlled by or is under common control with such specified
Person; provided, however, that, for the purposes of this Agreement, Reuters and
Instinet shall not be considered Affiliates of each other. For the purposes of
the foregoing, unless otherwise stated with respect to the use of the term
"Affiliate", "control" means the power to direct or cause the direction of the
management or policies of such other Person, whether through the ownership of
voting securities, by contract or otherwise.

            (c)   "Agreement" means this License Agreement, including all
Schedules hereto, in each case as modified, supplemented or amended from time to
time.

            (d)   "Business Day" means a day other than a Saturday or Sunday on
which banks are generally open in London and New York City for normal business.

            (e)   "Change of Control" means, with respect to Reuters, either (i)
the sale or transfer of all or substantially all of Reuters' assets to any
Person or group (as defined under Section 13(d)(3) of the United States
Securities Exchange Act of 1934) of Persons (other than a wholly-owned
subsidiary of Reuters); (ii) the acquisition of Reuters by another Person by
means of any transaction or series of related transactions (including any
reorganization, merger or consolidation, whether of Reuters with or into any
other Person or Persons or of any other Person or Persons with or into Reuters,
but excluding (x) any merger effected exclusively for the purpose of changing
the domicile of Reuters or (y) any consolidation or merger following which
holders of more than 50% of the equity securities outstanding immediately prior
to such merger or consolidation hold more than 50% of the equity securities of
the entity surviving such consolidation or merger or an entity controlling such
surviving entity after such consolidation or merger); (iii) a transaction or
series of transactions in which a Person or group of Persons acquires beneficial
ownership (as determined in accordance with Rule 13d-3 of the United States
Securities Exchange Act of 1934) of more than 50% of the voting power of
Reuters.

            (f)   "Claim" has the meaning set forth in Section 7.4.

            (g)   "Confidential Information" has the meaning set forth in
Section 5.1.

            (h)   "Decision Date" has the meaning set forth in Section 3.3.

            (i)   "Disclosing Party" means a Party that discloses Confidential
Information to the other Party.

            (j)   "Effective Date" has the meaning set forth in the Preamble.

            (k)   "Election Notice" has the meaning set forth in Section 9.7(a).

            (l)   "Election Period" has the meaning set forth in Section 9.7(a).

            (m)   "Enhancement" means any improvement, new release,
modification, customization, translation, upgrade, enhancement, fix, extension
to, or derivative work of applicable Licensed Technology that is intended to
improve, modify or supplement the functionality or features of same. For the
avoidance of doubt, Enhancements excludes Updates.

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            (n)   "Enhancement Agreements" has the meaning set forth in Section
3.4(a).

            (o)   "FIM Marks" means the trademarks, service marks and other
marks listed on Schedule A hereto.

            (p)   "FIM System" has the meaning set forth in the definition of
Licensed Technology.

            (q)   "Fixed Income Business" means, at any time, the field of
business conducted by Instinet or any of its Affiliates at such time that
relates to the fixed income markets.

            (r)   "Infringement" has the meaning set forth in Section 4.6.

            (s)   "Instinet" has the meaning set forth in the Preamble.

            (t)   "Instinet Competitor" has the meaning set forth in Section
4.8(a).

            (u)   "Instinet Property" has the meaning set forth in Section 4.1.

            (v)   "Intellectual Property" means all intellectual and industrial
property rights owned or held under license by a party in any jurisdiction,
including all such rights in, to, or arising out of any U.S. or foreign (i)
patents (including design and utility patents) and applications therefor and any
and all reissues, divisions, continuations, renewals, extensions and
continuations-in-part thereof; (ii) inventions (whether patentable or not),
invention disclosures, improvements, trade secrets, proprietary information,
know-how, technology, specifications, methodologies, processes and technical
data; (iii) copyrights, copyright registrations and, applications therefor, and
all other rights corresponding thereto; and (iv) any trade names, trademarks,
service marks, logos, slogans, trade dress, indicators of origin and similar
rights; in each case whether in development, production form or otherwise, and
including all goodwill associated with the foregoing, and all claims and
defenses, and all rights in any agreement related to the foregoing.

            (w)   "Licensed Know-How" means the know-how and confidential
information (including any Confidential Information) shared with or provided to
Reuters by Instinet hereunder that is necessary to assist Reuters with
incorporating the Licensed Technology into the FIM System in combination with
any Third Party Technology.

            (x)   "Licensed Technology" means the software applications owned by
Instinet and currently used to operate the trading system used by Instinet as of
the date hereof to conduct transactions in the Fixed Income Business and
currently referred to as the FIM System (the "FIM System"), and all Updates
thereto owned by Instinet.

            (y)   "Losses" has the meaning set forth in Section 7.3(a).

            (z)   "Notice" has the meaning set forth in Section 9.1.

            (aa)  "Notification Date" has the meaning set forth in Section 3.3.

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            (bb)  "Object Code" means machine-executable computer software
prepared by compiling and linking Source Code or machine independent
representations of computer software intended for subsequent interpretation or
just-in-time compiling which is not convenient to human understanding of the
program logic, but which is appropriate for execution or interpretation by a
computer.

            (cc)  "Offer" has the meaning set forth in Section 9.7(a).

            (dd)  "Offer Notice" has the meaning set forth in Section 9.7(a).

            (ee)  "Offered Assets" has the meaning set forth in Section 9.7(a).

            (ff)  "Offeror" has the meaning set forth in Section 9.7(a).

            (gg)  "Party" means either or both of Instinet and Reuters, as the
context may require.

            (hh)  "Person" means any legal person or entity, including any
individual, corporation, partnership, joint venture, association, joint stock
company, trust, unincorporated association, limited liability company,
governmental entity, or other person or entity of similar nature.

            (ii)  "Receiving Party" has the meaning set forth in Section 5.2.

            (jj)  "Reuters" has the meaning set forth in the Preamble.

            (kk)  "Reuters Parties" means, collectively, Reuters Ventures and
Reuters Subsidiaries.

            (ll)  "Reuters Product" means, with respect to Reuters or a Reuters
Party, a product or service that (i) contains content, technology and/or
functionality that is not Licensed Technology which content, technology and/or
functionality is a significant part of such product or service ("Licensed
Technology" to exclude any Enhancements created pursuant to Section 3.3, for
purposes of this definition), and (ii) is generally licensed, distributed,
offered for sale and/or sold by Reuters or such Reuters Party to Third Parties
in the ordinary course of business.

            (mm)  "Reuters Subsidiary" means any Person that is directly or
indirectly owned more than fifty (50) percent by Reuters Group Plc; provided,
however, that each such Person shall be deemed to be a Reuters Subsidiary, only
for as long as Reuters maintains at least such ownership percentage interest in
such Person.

            (nn)  "Reuters Venture" means a joint venture, partnership,
consortium, alliance, or similar Person in which Reuters has acquired or
invested, after the Effective Date, no less than twenty percent (20%) and no
more than fifty percent (50%) of the outstanding equity of such Person,
provided, however, that each such Person shall be deemed to be a Reuters Venture
only for as long as Reuters maintains such ownership percentage interest in such
Person.

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            (oo)  "Source Code" means computer software and any associated
documentation in human-readable form and all related compiler command files,
build scripts, scripts relating to the operation and maintenance to a software
application, object libraries, including comments, and the following items to
the extent that they are confidential: data files and structures, APIs headers,
include files, macros, programming tools not commercially available, technical
specifications, flowcharts and logic diagrams such that collectively the
foregoing will be sufficient to enable a person possessing reasonable skill and
expertise in computer software and information technology to build, load and
operate the Object Code of such software and to maintain support and effectively
use such software.

            (pp)  "Term" has the meaning set forth in Section 6.1.

            (qq)  "Third Party" means any Person other than a Party (or an
Affiliate).

            (rr)  "Third Party Technology" means any Intellectual Property owned
by a Third Party and currently used to operate the trading system used by
Instinet as of the date hereof to conduct transactions in the Fixed Income
Business, and all Updates thereto owned by a Third Party.

            (ss)  "Unrestricted Sale Date" has the meaning set forth in Section
9.7(b).

            (tt)  "Update" shall mean any change intended to maintain, repair or
restore intended functionality to the applicable existing Licensed Technology,
and not to improve or modify it.

                                   ARTICLE II

                                  LICENSE GRANT

            2.1   Grant of License. Subject to the terms and conditions of this
Agreement, Instinet hereby grants to Reuters a royalty-free and fully paid up,
worldwide, non-exclusive, non-transferable (subject to Section 9.5) right and
license to use, copy, distribute, perform and display the Licensed Know-How and
Licensed Technology (and, with respect to each of the rights under subsections
(i)-(iii), any and all rights to use Third Party Technology that Instinet has
the right to sublicense to Reuters for use in connection with each such right,
as applicable, at no additional cost, consideration or non-monetary obligation
to Instinet), in Object Code form only, solely in connection with (i) Reuters'
internal systems, internal development work and incorporation into Reuters
Products, (ii) provision of customer service and user support to customers of
Reuters and Reuters Parties, (iii) the distribution, offer for sale and sale of
Reuters Products to customers of Reuters and Reuters Parties for their use
thereof; and (iv) use by such customers of Reuters Products. For the avoidance
of doubt, the right to distribute the Licensed Technology under subsection (iii)
is limited solely to distributing Licensed Technology as and to the extent
incorporated within a Reuters Product.

            2.2   Sublicenses. (a) Reuters may grant sublicenses of its rights
under Sections 2.1(ii)-(iv) to Reuters Parties, third-party redistributors,
resellers and original equipment manufacturers for further sublicensing solely
to customers of Reuters Parties, for and in connection with such customers' use
of Reuters Products.

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            (b)   Reuters may grant sublicenses (without further right of
sublicense) of its rights under Section 2.1(iv) directly to customers of Reuters
Parties, for and in connection with their use of Reuters Products.

            (c)   Reuters shall not grant to any sublicensee any rights in the
Licensed Technology or Licensed Know-How that exceed those granted to Reuters
herein. All sublicenses hereunder shall designate Instinet as a third-party
beneficiary of, with the right to enforce in its own name, all terms and
provisions of this Agreement governing the protection of Instinet's Confidential
Information, the Licensed Know-How and the Licensed Technology. Reuters shall
notify Instinet promptly after any new Reuters Subsidiary begins use of the
Licensed Technology.

            2.3   Notification. Reuters shall give Notice to Instinet if it (a)
executes a sublicense pursuant to Section 2.2(a), which Notice shall include
what Licensed Technology has been sublicensed, the identity of the sublicensee,
the nature of the sublicense and any other nonfinancial information reasonably
requested by Instinet to protect its rights in the Licensed Technology; or (b)
intends to create a new Reuters Product incorporating any Licensed Technology.

            2.4   FIM Marks.

            (a)   In connection with the license granted in Section 2.1,
Instinet hereby grants to Reuters, a non-exclusive, non-transferable (except as
part of a permitted transfer of this Agreement pursuant to Section 9.5),
sublicensable (solely to the extent the Licensed Technology may be sublicensed
in accordance with the terms hereof) right and license to use the FIM Marks
solely to the extent that such FIM Marks appear on the Licensed Technology
(including in Licensed Technology incorporated into a Reuters Product) solely as
provided by Instinet in the exact manner, style and typeface as they appear on
the Licensed Technology as delivered by Instinet to Reuters or in any other
manner, style or typeface approved or required by Instinet from time to time in
its sole discretion. Notwithstanding the foregoing, Reuters shall follow
instructions given by Instinet to Reuters from time to time regarding the form
of use of the FIM Marks, including the Guidelines for Instinet Marque Usage
attached hereto.

            (b)   Instinet may terminate the license in Section 2.4(a) at its
sole discretion, upon thirty (30) days advance Notice to Reuters, and Reuters
shall not use the FIM Marks after the termination date; provided that if the FIM
Marks are embedded or incorporated into any Reuters Product in any manner,
Instinet shall bear all costs and expenses for their removal or deletion and
shall ensure that such removal or deletion does not impair or compromise the
functionality of the applicable Licensed Technology in any way, and provided
further that Instinet must accomplish all such removal or deletion between the
Notice date and the termination date, subject to Reuters' reasonable cooperation
in connection therewith. Reuters shall not be deemed in breach of the license in
Section 2.4(a) with respect to any use of the Licensed Technology after the
above termination date if Instinet, subject to Reuters' reasonable cooperation,
has not timely accomplished the removal or deletion of the FIM Marks as set
forth above.

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            (c)   Without limiting Article IV, Reuters acknowledges and agrees
that the FIM Marks are the exclusive and valuable property of Instinet, Reuters
shall not acquire any ownership in the FIM Marks hereunder, and any goodwill
arising from Reuters's use of the FIM Marks shall inure solely to the benefit of
Instinet. Reuters shall cooperate with Instinet (at Instinet's cost in respect
of actually incurred out-of-pocket costs) in the registration in any
jurisdiction of any FIM Marks in the name of Instinet and/or the recordation of
this agreement as may be required under applicable law.

            (d)   In its use of the FIM Marks hereunder, Reuters shall maintain
the high quality control standards that Instinet maintains with respect to its
use of the FIM Marks as of the date hereof.

            2.5   Restrictions/Limitations. All rights in or to the Licensed
Technology or FIM Marks not expressly granted hereunder are expressly reserved
by Instinet. Reuters shall not use the Licensed Technology or FIM Marks other
than in accordance with the licenses granted herein, including as part of a
service bureau or network or time-sharing facility for third parties.

            2.6   Third Party Technology. Schedule B sets forth the agreements
concerning any and all Third Party Technology which, to Instinet's knowledge, is
in existence as of the date hereof and is not licensed to Reuters pursuant to
Section 2.1 for each use therein; provided that Instinet shall not be deemed in
breach of this Agreement if it inadvertently omits any Third Party Technology
from Schedule B, provided further that Instinet promptly notifies Reuters and
amends Section 2.1 accordingly after it becomes aware of any such omission.
During the Term, Instinet shall promptly inform Reuters whenever any Third Party
Technology not licensed to Reuters pursuant to Section 2.1 has been included in
any Update or Enhancement provided to Reuters by or on behalf of Instinet under
Section 3.2. Reuters shall be responsible for obtaining from any Third Parties
any rights to such Third Party Technology, including the payment of all fees and
assumption of all obligations relating thereto; provided that, at Reuters'
reasonable request, Instinet shall reasonably assist Reuters in any negotiations
with such Third Parties.

            2.7   Notice of Reuters Parties. Upon the reasonable request of
Instinet, Reutesr shall provide Instinet with a Notice listing all then-existing
Reuters Parties.

                                  ARTICLE III

                              ENHANCEMENTS/UPDATES

            3.1   Initial Delivery. Instinet shall, within a reasonable period
after the Effective Date, (i) deliver or cause to be delivered to Reuters one
(1) copy of the Licensed Technology in Object Code form, and all related
documentation (if any) in the form and manner in which the foregoing are
delivered to Instinet's other subscribers; and (ii) provide any Licensed
Know-How in the form and of the type that is provided to Instinet's other
subscribers.

            3.2   Routine Updates and Enhancements. Instinet has no obligation
to create, acquire or have created on its behalf any Updates and/or Enhancements
at any time. If, however, Instinet does create, acquire or have created on its
behalf any Updates and/or Enhancements (other than enhancements created
exclusively for any Third Parties), Instinet shall notify Reuters

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promptly after same is used by Instinet or its subscribers. After such
notification, as applicable: Instinet shall provide Reuters one (1) copy of the
Update (or Licensed Technology incorporating same) in Object Code form, and all
related documentation (if any), and shall reasonably provide Reuters with
Licensed Know-How, each in the form and manner in which the foregoing were
delivered or provided to Instinet's other subscribers; or (ii) the parties shall
negotiate promptly in good faith towards a new license for Reuters to use any
such Enhancements, upon commercially reasonable terms that are no less favorable
than the best terms currently offered to any other Instinet subscriber. Upon
delivery, all such Updates shall be considered within the definition of
"Licensed Technology" and licensed to Reuters pursuant to Section 2.1 hereunder.
The terms of the new license under this Section 3.2 shall govern Reuters' rights
with respect to any Enhancements provided to Reuters pursuant to this Section
3.2.

            3.3   Requested Updates and Enhancements. Reuters may request the
creation of any Update or Enhancement, either on behalf of itself or any Reuters
Party during the Term by giving Notice to Instinet in writing, specifying in
reasonable detail the requested Enhancement or Update, including the
functionality and other specifications desired (the "Notification Date").
Instinet may, at its sole option, (i) create such Update or Enhancement or
portion thereof, either alone or in connection with Third Parties, or (ii)
authorize Reuters to create such Update or Enhancement or portion thereof
(either alone or jointly with one or more Third Parties, at Reuters' option;
provided that Instinet shall inform Reuters of such decision within thirty (30)
days of the Notification Date (the "Decision Date"). If Instinet fails to notify
Reuters by such time, Instinet's consent to option (ii) shall be deemed given.

            3.4   Enhancement Agreements. (a) No work shall be performed on an
Update or Enhancement pursuant to Section 3.3 until all applicable parties
execute one or more agreements addressing all relevant legal issues, together
with one or more accompanying statements of work (upon execution, "Enhancement
Agreements" to be annexed as Schedules hereto and incorporated herein). The
Parties shall negotiate in good faith, and shall use their best efforts to
execute all such Enhancement Agreements on commercially reasonable terms (in the
case of option (ii), following the Parties' selection of reasonable, mutually
agreeable Persons for the engagement) as soon as reasonably possible after the
Decision Date, but in no event later than forty-five (45) days after such date.
Any Enhancement Agreement between a Party and a Third Party requires the consent
of the non-signing Party, which shall not be unreasonably withheld or delayed.
If Instinet is a party to an Enhancement Agreement, and an Enhancement Agreement
is not executed within such forty-five (45) day period due to no fault of
Reuters, Instinet's consent to option (ii) in Section 3.3 shall be deemed given.

            (b)   If Instinet elects option (i) in Section 3.3, (i) Reuters
shall pay Instinet on a cost plus fifteen (15) percent reimbursement basis (such
costs to include out-of-pocket costs and a reasonable allocation of salary for
Instinet employees working on the project); and (ii) Reuters shall have
royalty-free rights to use the applicable Enhancements that are at least as
broad as those in Sections 2.1 and 2.2 herein.

            (c)   If Instinet elects option (ii) in Section 3.3, such
Enhancement Agreement shall provide, inter alia, that: (i) Instinet shall
provide Reuters and such Third Parties with a current copy of and a license to
use, all Source Code and Object Code in the Licensed Technology and all related
documentation that is necessary to create, maintain and support such

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Enhancement subject to reasonable confidentiality obligations; (ii) after
termination of such Enhancement Agreement, any Third Parties shall return all
copies of the Source Code and related documentation to Instinet and cease all
use thereof, while Reuters may retain a copy of the Source Code and related
documentation for use in connection with supporting and maintaining the
Enhancement thereafter; (iii) as between Instinet and Reuters, Reuters shall own
all rights and Intellectual Property in any such Enhancement (subject to
Instinet's rights in the underlying Licensed Technology); provided that Instinet
shall have a perpetual, irrevocable, royalty-free license, on terms
substantially similar to those herein for Reuters, to use such Enhancement in
any fields in which Reuters cannot compete with Instinet pursuant to Section
4.8(b); and (iv) Instinet shall be designated a third-party beneficiary of, with
the right to enforce in its own name, all terms and provisions of such agreement
governing to the protection of its Confidential Information, any Licensed
Know-How and the Licensed Technology.

            (d)   All Enhancement Agreements, regardless of whether created by
Instinet or Reuters, shall contain, as applicable, terms including (i) obtaining
the right to use all Intellectual Property not owned by the parties thereto;
(ii) a description of the new Update or Enhancement (including components,
features, functionality and performance); (iii) a development schedule,
estimated fees, costs and expenses, and timing for and details of any project
status reports; (iv) necessary materials, equipment and personnel resources; (v)
procedures for change requests and acceptance testing procedures; (vi)
non-competition provisions for Reuters' use of the Enhancement equivalent to
those in Section 4.8; and (vii) indemnification by the proper parties for
third-party claims relating to the Enhancement and/or any modifications made to
the Licensed Technology in the process of creating the Enhancement.

            3.5   No Reverse Engineering. Reuters shall have no right to create
Updates or Enhancements or otherwise to decompile, reverse engineer or
disassemble the Licensed Technology, or otherwise to obtain, discover or
recreate any Source Code therein, or to engage, assist or permit Third Parties
to do any of the foregoing, except as expressly permitted by Instinet in
writing, either in an Enhancement Agreement or otherwise.

            3.6   No Further Obligations. Except as expressly set forth in this
Agreement, Instinet shall have no obligation to provide to Reuters any
Enhancements, Updates or other development, consulting, support or maintenance
services. Reuters shall be solely responsible for, and Instinet shall have no
responsibility or liability for providing customer service and user support to
Reuters' customers and sublicensees and Reuters Parties' customers in connection
with Reuters Products (and any Licensed Technology embodied therein).

                                   ARTICLE IV

                         OWNERSHIP/PARTIES' OBLIGATIONS

            4.1   Licensed Technology. Reuters hereby acknowledges and agrees
that as between Instinet and Reuters, Instinet is the exclusive owner of all
right, title and interest in and to the FIM Marks, Licensed Technology and any
Updates or Enhancements thereto that are created by Instinet or otherwise
specified as owned by Instinet pursuant to an Enhancement Agreement ("Instinet
Property"). For the avoidance of doubt, the acknowledgment in this Section 4.1
shall not apply to any Third Party Technology. This Agreement grants or
transfers

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no title, ownership right or Intellectual Property in or to any Instinet
Property or to any portion thereof, and no such grant or transfer shall be
inferred or created by implication, and Reuters shall have no right to use the
Licensed Technology other than as expressly provided herein.

            4.2   Reuters Products. Instinet hereby acknowledges and agrees that
as between Instinet and Reuters, Reuters is the exclusive owner of all right,
title and interest in and to the Reuters Products, subject to Instinet's
ownership of any Instinet Property incorporated therein or appearing thereon.

            4.3   Cooperation. Each Party shall, at the other Party's reasonable
request and expense, cooperate with the requesting Party in obtaining,
perfecting or protecting such other Party's ownership and other interests as
acknowledged in this Article IV.

            4.4   Valuable Property. Reuters acknowledges and agrees that the
Licensed Technology may contain or incorporate unique or valuable trade secrets
of Instinet. Accordingly, the parties agree that if Instinet institutes an
Action to enforce any of Reuters' material obligations under Article IV or the
licenses granted under Article II, Instinet shall be entitled to seek
provisional or temporary injunctive relief without posting of any bond or other
security. The foregoing rights shall be in addition to and without prejudice to
any other rights that Instinet may have hereunder or applicable law, whether at
law or in equity.

            4.5   No Inconsistent Action. Neither Party shall take any action to
challenge the ownership, validity or enforceability of the other Party's
Intellectual Property rights as acknowledged hereunder. Without limiting the
foregoing, Reuters agrees that at no time shall it adopt, use, register or apply
to register in any jurisdiction any of the Licensed Technology or any
trademarks, service marks, slogans or logos confusingly similar to the FIM
Marks, nor shall it take any other action contrary with Instinet's ownership of
the Instinet Property.

            4.6   Protection of Rights. Each Party shall promptly notify the
other Party in writing of any threat, warning or notice of any Action adverse to
any of such other Party's Intellectual Property of which such Party may become
aware from time to time. The enforcement and protection, including the decision
of whether or not to prosecute infringements, misappropriations or violations
(each, an "Infringement") or maintain registrations, of a Party's Intellectual
Property hereunder shall be in the sole discretion and control of the Party
owning such Intellectual Property, and the other Party shall execute such
documents and provide such cooperation to the owning Party, at the owning
Party's expense, as the owning Party reasonably may request in this regard.

            4.7   Notices/Laws. Reuters shall not (a) modify or remove any
copyright, trademark or other proprietary notices or product identifications or
disclaimers present on all or any part of the Licensed Technology, or (b) use
the Licensed Technology, or any portion thereof, in any way that violates
applicable law.

            4.8   Competition (a) Reuters shall not, and shall use commercially
reasonable efforts to cause all Reuters Parties not to sell, license, loan,
lease, sublicense, make available, disclose, distribute or otherwise transfer or
provide any Licensed Technology to any Person listed on Schedule C as a current
competitor of Instinet, such list to be supplemented from time

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to time with comparable parties subject to good-faith agreement of the Parties
(all of the foregoing, "Instinet Competitors").

            (b)   Reuters shall not, and shall use commercially reasonable
efforts to cause all Reuters Parties not to use or otherwise exploit the
Licensed Technology (including, for the avoidance of doubt, Licensed Technology
incorporated within any Reuters Product) so as to compete directly with or
substantially replicate:

                  (i)   the business of trading fixed income instruments by
                        automated matching currently offered by Instinet or any
                        of its Affiliates that is in bona fide operation as of
                        the date of notification under Section 2.3(b) with
                        regard to any particular class of fixed income
                        instruments or for which Instinet or any of its
                        Affiliates commences bona fide operation within nine (9)
                        months of such date; or

                  (ii)  the business of trading publicly quoted equity
                        securities (and/or derivatives thereof) by electronic
                        matching, in which Instinet acts as a broker/dealer
                        and/or exchange, as applicable in the relevant
                        jurisdiction, that is currently offered by Instinet or
                        any of its Affiliates that is in bona fide operation as
                        of such date or for which Instinet or any of its
                        Affiliates has a written business plan to commence bona
                        fide operation within twelve (12) months of such date;

            provided that, if Instinet or its Affiliates has not actually timely
commenced bona fide operation of the new business as set forth in (i) or (ii)
above, Reuters or any sublicensee may use the Licensed Technology in connection
with the operation of such business without violating this Section 4.8(b).

                                   ARTICLE V

                            CONFIDENTIAL INFORMATION

            5.1   Definition. For purposes of this Agreement, "Confidential
Information" of a Party means any non-public, proprietary information and
materials disclosed by such Party to the other Party during the Term in
connection with this Agreement, whether oral, written or otherwise tangible;
provided that any oral information is designated simultaneously as
"confidential" or "proprietary" and is followed by written confirmation of such
status within ten (10) days thereafter, such confirmation to specify the
Confidential Information in reasonable detail. For the purposes hereof, subject
to Section 5.10 and to any applicable exceptions in Section 5.3, Instinet's
"Confidential Information" is deemed to include the Licensed Technology.

            5.2   Treatment. (a) Subject to Section 5.10, the Party receiving
the Confidential Information (the "Receiving Party") shall treat as confidential
all of the Disclosing Party's Confidential Information, and shall not use such
Confidential Information except as expressly permitted under this Agreement.
Without limiting the foregoing, the Receiving Party

                                       11
<PAGE>   12
shall use at least the same degree of care that it uses to prevent the
disclosure of its own confidential information of like importance, but in no
event less than reasonable care, to prevent the disclosure of the Disclosing
Party's Confidential Information. Subject to the foregoing, and except as may be
specifically agreed from time to time by the Parties, each Party shall not: (i)
communicate or disclose, directly or indirectly, any of the Confidential
Information (or any part thereof) of the other Party to any Person other than
its own employees, directors, officers, attorneys, accountants and similar
representatives bound by confidentiality obligations who have a need for such
information in connection with performance under this Agreement and who have
agreed to confidentiality obligations substantially similar to those set forth
in this Article V; (ii) use any Confidential Information (or any part thereof)
in any manner except as contemplated under this Agreement; or (iii) take any
other action with respect to the Confidential Information (or any part thereof)
of the other Party inconsistent with the confidential and proprietary nature of
such information. Each Party shall indemnify the other Party for any breach of
this Article V by any Person to whom it discloses the other Party's Confidential
Information.

            (b)   Each Party may copy, modify and internally distribute
Confidential Information of the other Party; provided that neither Party shall
make more copies, modifications or distributions of any Confidential Information
than it shall reasonably deem necessary in connection with its permitted use
thereof. Disclosure of any Confidential Information by either Party shall not be
deemed to represent an assignment or grant of any right, title or interest in
such Confidential Information to the Receiving Party other than as expressly set
forth hereunder.

            5.3   Exclusions. (a) Confidential Information shall exclude
information that the Receiving Party can demonstrate: (i) was independently
developed or conceived by the Receiving Party without reference to the
Disclosing Party's Confidential Information, as demonstrated by sufficient
evidence; (ii) became known to the Receiving Party, without restriction, from a
Third Party who had a right to disclose it; (iii) was in the public domain at
the time it was disclosed or enters the public domain through no act or omission
of the Receiving Party or any other Person with an obligation to keep such
information confidential; or (iv) was known to the Receiving Party at the time
of disclosure as demonstrated by sufficient evidence.

            (b)   The restrictions set forth in Section 5.2 shall not apply to
Confidential Information that is required to be disclosed by the Receiving Party
pursuant to an order or requirement of a court, administrative agency, or other
governmental body; provided, however, that the Receiving Party shall provide
prompt prior Notice thereof to the Disclosing Party describing in reasonable
detail all Confidential Information to be so disclosed, and shall use reasonable
efforts and cooperate with the Disclosing Party at the Disclosing Party's
expense to obtain a protective order or otherwise seek to prevent disclosure of
such Confidential Information.

            5.4   Confidentiality of Agreement. Each Party agrees that the terms
and conditions of this Agreement, but not the existence of this Agreement, shall
be treated as Confidential Information and that no reference to the terms and
conditions of this Agreement or to activities pertaining thereto shall be made
in any form of public or commercial advertising without the prior written
consent of the other Party; provided, however, that each Party may disclose the
terms and conditions of this Agreement: (i) as required by any court or other
governmental body; (ii) as otherwise required by law; (iii) to its own
employees, directors,

                                       12
<PAGE>   13
officers, attorneys, accountants and similar representatives bound by
confidentiality obligations who have a need for such information in connection
with performance under this Agreement; (iv) in connection with the requirements
of any governmental or securities exchange filing or a public offering; (v) in
confidence, to accountants, banks and financing sources and their advisors; or
(vi) in confidence, in connection with the enforcement of this Agreement or
rights under this Agreement and provided, further, that Instinet may disclose
the terms and conditions of this Agreement in confidence, to any prospective
buyers of all or substantially all of the assets of, or prospective investors in
(x) Instinet, (y) any Instinet business utilizing the Licensed Technology or (z)
the Licensed Technology itself.

            5.5   Third Party Disclosure. Each Party agrees that, to the extent
it is permitted to disclose Confidential Information to a Third Party (other
than pursuant to Section 5.3(b)), it shall do so pursuant to a written
non-disclosure agreement containing terms at least as protective of Confidential
Information as those set forth in this Agreement.

            5.6   Remedies. Unauthorized use by a Receiving Party of the
Disclosing Party's Confidential Information will result in irreparable harm to
the Disclosing Party. Therefore, if a Party breaches any of its obligations with
respect to confidentiality and use of Confidential Information hereunder, the
Disclosing Party, in addition to any rights and remedies it may have, shall be
entitled to seek equitable, including injunctive, relief to protect its
Confidential Information.

            5.7   Return. Subject to Sections 5.10 and 6.3, upon termination of
this Agreement for any reason, upon request, each Party promptly shall return to
the other Party all Confidential Information of the other Party, including all
copies thereof, under its possession or control, or destroy or purge its own
system and files of any such Confidential Information and deliver to the other
Party a written certificate signed by an officer of such Party that such
destruction and purging have been carried out.

            5.8   Legends. Each Party agrees that it shall not remove, alter,
deface or obscure, any statutory copyright notice or identification or evidence
of confidentiality contained on or included in any of the Confidential
Information. Each Party shall reproduce any such notice or identification on any
reproduction or modification of any of the Confidential Information and shall
add any statutory copyright notice or evidence of confidentiality to the
Confidential Information upon the reasonable request by the other Party.

            5.9   Cooperation. Each Party agrees that, either upon learning of,
or upon a showing by the other Party of, any threatened or actual breach of the
provisions of this Article V or of any threatened or actual unauthorized use or
disclosure of the Confidential Information by its officers, directors,
employees, agents or subcontractors, or in the event of any loss of, or
inability to account for, any of the Confidential Information or any such
information or materials, the Party learning of the threatened or actual breach
or the unauthorized use or disclosure shall give Notice to the other Party
thereof and shall cooperate as reasonably requested by the other Party in
conjunction with the other Party's efforts to seek appropriate injunctive relief
or otherwise to prevent or curtail such threatened or actual breach or
unauthorized use or disclosure or to recover such Confidential Information.

                                       13
<PAGE>   14
            5.10  License. Nothing in this Article V (including Sections 5.1,
5.2 and 5.7) shall be construed so as to limit Reuters' rights under Sections
2.1 and 2.2 during the Term, including Reuters and sublicensees' rights to use,
copy, distribute, perform or display the Licensed Technology and/or Licensed
Know-How as set forth therein.

                                   ARTICLE VI

                                      TERM

            6.1   Term. Subject to Section 6.3, the term of this Agreement
("Term") shall commence on the Effective Date and shall continue in perpetuity;
provided that (i) with respect to Reuters, on the Business Day immediately
following the first date on which Reuters, directly or indirectly, ceases to own
more than fifty percent (50%) of the voting stock of Instinet, and (ii) with
respect to any Reuters Subsidiary or Reuters Venture, on the date that any such
party ceases to have such status, Instinet's obligations under Sections 3.2 and
3.3 shall expire with respect to any Updates or Enhancements created after such
date.

            6.2   Termination. (a) Subject to Section 6.3, (i) either Party may
terminate this Agreement, effective upon written notice to the other Party, if
such Party materially breaches this Agreement and does not cure such breach
within forty-five (45) days after notice from the non-breaching party specifying
the breach in reasonable detail; and (ii) Instinet may terminate this Agreement,
effective upon written notice to Reuters, if Reuters acquires or obtains control
of an Instinet Competitor in violation of Section 9.5.

            (b)   To the fullest extent permitted by law, either Party may
terminate this Agreement, effective upon Notice, (ii) upon the occurrence of:
(A) the insolvency of the other Party; (B) the appointment of a receiver or
trustee for all, or substantially all, of the property or assets of such other
Party; (C) the filing of a petition by, or of an involuntary petition against,
such other Party under the provisions of any bankruptcy, insolvency or similar
act; (D) the making by such other Party of an assignment for the benefit of
creditors; or (E) the dissolution of such other Party.

            6.3   Effect of Termination. (a) Notwithstanding Section 6.1 and
6.2, upon the expiration or termination of this Agreement with respect to
Reuters pursuant to Section 6.1(i) or 6.2, (i) the licenses and rights in
Article II shall remain in full force and effect with respect to all uses of
Licensed Know-How and Licensed Technology (including all Updates and
Enhancements) existing on or before the date of such expiration or termination;
and (ii) Reuters (either by itself or with a Third Party) may support, maintain,
and/or create Updates or Enhancements for any Reuters Products existing as of
the date of such expiration or termination, and Instinet shall continue to
license the Licensed Know-How and Licensed Technology (in both Source Code and
Object Code) and provide the Source Code to Reuters for such purposes, subject
in all cases to Reuters' obligations herein, including those in Section 4.8. For
the avoidance of doubt, after the date of such expiration or termination,
Reuters shall not (either by itself or with a Third Party) create any new
Reuters Products that both use and require significant development work on the
Licensed Technology and are not Updates or Enhancements to Reuters Products
existing on or before the date of such expiration or termination.

                                       14
<PAGE>   15
            (b)   Notwithstanding Section 6.1 and 6.2, upon the expiration or
termination of this Agreement with respect to a Reuters Subsidiary and/or
Reuters Venture pursuant to Section 6.1(ii), (i) the sublicenses in Section 2.2
shall remain in full force and effect with respect to all uses of Licensed
Know-How and Licensed Technology (including all Updates and Enhancements)
existing on or before the date of such expiration or termination; and (ii)
Reuters (either by itself or with a Third Party) may support, maintain, and/or
create Updates (but not Enhancements) for any Reuters Products existing as of
the date of such expiration or termination, and Instinet shall continue to
license the Licensed Know-How and Licensed Technology (in both Source Code and
Object Code) and provide the Source Code to Reuters for such purposes; provided
that the former Reuters Subsidiary or Reuters Venture is subject in all cases to
Reuters' obligations herein, including those in Section 4.8.

            6.4   Survival. Upon the expiration or termination of this Agreement
for any reason, the provisions of Articles IV, V, VII (other than Section 7.1),
VIII and IX (other than Section 9.7) and Sections 3.5, 6.3 and 6.4 shall
survive.

                                   ARTICLE VII

                 REPRESENTATIONS AND WARRANTIES; INDEMNIFICATION

            7.1   Both Parties. Each Party represents and warrants to the other
Party that, as of the date hereof: (i) it has the right, power and authority to
enter into this Agreement and to fully perform its obligations hereunder; and
(ii) the making of this Agreement does not violate any agreement existing
between such Party and any other Person.

            7.2   WARRANTY EXCLUSIONS. EXCEPT AS PROVIDED IN SECTION 7.1 ABOVE
AND WITHOUT LIMITING SECTION 7.3, ALL LICENSED TECHNOLOGY IS LICENSED AND
PROVIDED "AS IS," WITHOUT WARRANTY OF ANY KIND, AND ALL EXPRESS AND IMPLIED
WARRANTIES, INCLUDING WARRANTIES OF TITLE, NON-INFRINGEMENT, MERCHANTABILITY,
UNINTERRUPTED SERVICE OR FITNESS FOR A PARTICULAR PURPOSES, ARE EXPRESSLY
DISCLAIMED. FURTHER, INSTINET MAKES NO REPRESENTATION OR WARRANTY AS TO THE
CONDITION, DESIGN OR OPERATION OF ANY LICENSED TECHNOLOGY, AND, WITHOUT
SPECIFICALLY LIMITING THE GENERALITY OF THE FOREGOING, INSTINET SPECIFICALLY
DISCLAIMS ANY IMPLIED OR EXPRESS REPRESENTATIONS AND WARRANTIES THAT ANY OF THE
FOREGOING WILL MEET ANY REQUIREMENTS OR NEEDS REUTERS (OR ANY REUTERS PARTY) MAY
HAVE, THAT ANY OF THE FOREGOING WILL OPERATE ERROR-FREE OR IN AN UNINTERRUPTED
FASHION AND THAT ANY OF THE FOREGOING IS COMPATIBLE WITH ANY PARTICULAR
PLATFORM.

            7.3   Indemnification by Instinet. (a) Subject to any limitations in
any Enhancement Agreement executed pursuant to Section 3.4 hereunder, Instinet
shall defend, indemnify and hold harmless Reuters and its officers, directors,
employees and agents from and against any liabilities, debts, losses, judgments,
awards, verdicts, settlements, costs or expenses (including reasonable
attorneys' fees and costs of suit) (collectively, "Losses"), solely to the
extent based upon an Action by a Third Party (each, a "Claim") alleging (i) that
the use of the Licensed Technology (including any Update) by Instinet, or by
Reuters or any Reuters sublicensees as permitted hereunder, Infringes the
Intellectual Property of any such Third Party, or (ii) any misrepresentation or
breach of any representation, warranty or covenant of Instinet

                                       15
<PAGE>   16
contained in this Agreement; provided that Reuters promptly notifies Instinet in
writing of such Claim and provided further that Instinet shall have the
exclusive right to control such defense and/or settlement, and that Reuters and
the applicable sublicensees shall provide reasonable assistance (at Instinet's
expense and reasonable request) in the defense of same. Reuters may elect, at
its own expense, to join in such defense. In no event shall Reuters settle any
Claim without Instinet's prior written approval, which shall not be unreasonably
withheld.

            (b)   Instinet shall have no liability or obligation to Reuters for
any Claims or Losses under Section 7.3(a) to the extent they arise from or in
connection with (i) Reuters' or its sublicensees' failure to use any Update or
Enhancement provided by Instinet; (ii) Reuters' or its sublicensees'
modification of the Licensed Technology other than as approved in writing by
Instinet; (iii) Reuters' or its sublicensees' use of the Licensed Technology in
combination with any hardware or software or other product or material not
provided or approved in writing by Instinet; (iv) any necessary compliance by
Instinet with any designs, specifications or requirements set forth by Reuters
in a Enhancement Agreement or other writing; (v) Reuters' or its sublicensees'
use of the Licensed Technology other than as set forth in this Agreement; and
(vi) the gross negligence or intentional misconduct of Reuters or its
sublicensees.

            7.4   Suspension of License. In the event that Instinet reasonably
believes that Reuters' or its sublicensees' authorized use of any portion of the
Licensed Technology hereunder may Infringe the Intellectual Property of a Third
Party:

            (a)   Instinet may give Notice to Reuters that it and its
sublicenses should suspend use of any and all such portions believed to be
Infringing, and Reuters shall, and shall use commercially reasonable efforts to
cause its sublicensees immediately to suspend use of such portion, until
Instinet reasonably satisfies itself that the Infringement risk no longer
exists, and

            (b)   Instinet may, in its sole election, (i) defend against such
Infringement, (ii) modify or redesign the Licensed Technology to avoid such
Infringement, or (iii) obtain a license from such Third Party to permit
continued use of the Licensed Technology as permitted hereunder. If the parties
reasonably agree in good faith that the Infringement is continuing, and options
(i), (ii) or (iii) are not practicable, Reuters shall have the right, at its
option, to (A) subject to Sections 3.3 and 3.4, modify or redesign the Licensed
Technology to avoid such Infringement or (B) obtain a license from such Third
Party for continued use of the Licensed Technology. If the parties reasonably
agree in good faith that the Infringement is continuing, and options (A) and (B)
are not practicable, Instinet may terminate the Agreement solely with respect to
such Infringing portion of the Licensed Technology. Any continued use or
exploitation of the Licensed Technology by Reuters or a sublicensee after
receipt of Notice and/or termination pursuant to this Section 7.4 shall be at
the sole risk of Reuters, and Reuters thereafter will be responsible for any and
all Claims and Losses arising, assessed or incurred by Reuters and its
sublicensees as a result of any actual or alleged Infringement that accrues on
or after the date of such Notice or termination due to such use.

            (c)   Sections 7.3 and 7.4 state the entire liability of Instinet,
and the entire remedy of Reuters and the Reuters Parties, if any, with respect
to any actual or alleged Infringement of any Third Party Intellectual Property.

                                       16
<PAGE>   17
            7.5   Indemnification by Reuters. Reuters shall defend, indemnify
and hold harmless Instinet and its officers, directors, employees and agents
from and against any Losses to the extent based upon a Claim alleging (i) that
Reuters' and the Reuters Parties' use of the Licensed Technology as provided or
delivered to Reuters by or on behalf of Instinet (and any Updates thereto)
Infringes the Intellectual Property of any Third Party, except to the extent
such Claim is subject to Instinet's indemnity obligations under Section 7.3, or
(ii) any misrepresentation or breach of any representation, warranty or covenant
of Reuters contained in this Agreement; provided that Instinet promptly notifies
Reuters in writing of such Claim and provided further that Reuters shall have
the exclusive right to control such defense and/or settlement, and that Instinet
shall provide reasonable assistance (at Reuters' expense and reasonable request)
in the defense of same. Instinet may elect, at its own expense, to join in such
defense. In no event shall Instinet settle any Claim without Reuters' prior
written approval, which shall not be unreasonably withheld. Notwithstanding the
foregoing, Reuters shall have no liability or obligation to Instinet for any
Claims or Losses under Section 7.5 to the extent they arise from or in
connection with the gross negligence or intentional misconduct of Instinet.

                                  ARTICLE VIII

                             LIMITATION OF LIABILITY

            EXCEPT WITH RESPECT TO THE INDEMNIFICATION OBLIGATIONS SET FORTH IN
SECTIONS 7.3 AND 7.5, AND EXCEPT TO THE EXTENT ARISING FROM A PARTY'S
INTENTIONAL OR WILLFUL MISCONDUCT AND/OR FRAUD, IN NO EVENT SHALL EITHER PARTY
BE LIABLE TO THE OTHER FOR ANY SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL
DAMAGES (INCLUDING ANY SUCH DAMAGES ARISING OUT OF A THIRD-PARTY CLAIM),
INCLUDING LOST PROFITS (BUT EXCLUDING LOST PROFITS AS COMPENSATORY DAMAGES FOR
INFRINGEMENT), COST OF COVER OR LOST BUSINESS OPPORTUNITIES, ARISING OUT OF OR
IN CONNECTION WITH THIS AGREEMENT OR ANY EVENTS OR TRANSACTIONS ARISING BY
VIRTUE OF THIS AGREEMENT, INCLUDING ANY BREACH HEREOF, REGARDLESS OF WHETHER
SUCH CAUSE OF ACTION IS BASED IN CONTRACT, TORT (INCLUDING NEGLIGENCE AND STRICT
LIABILITY) OR OTHERWISE. THE FOREGOING LIMITATIONS SHALL APPLY EVEN IF THE PARTY
AGAINST WHOM DAMAGES ARE SOUGHT HAS REASON TO KNOW OR HAS BEEN ADVISED OF THE
POSSIBILITY OF SUCH DAMAGES. NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY,
THE MAXIMUM LIABILITY OF EITHER PARTY HERETO TO THE OTHER PARTY UNDER THIS
AGREEMENT SHALL BE FIVE MILLION U.S. DOLLARS (US$5,000,000).

                                   ARTICLE IX

                                  MISCELLANEOUS

            9.1   Notices. Any notice or reports required or permitted to be
given under this Agreement (each, a "Notice") shall be given in writing and
shall be delivered by personal delivery, facsimile transmission, nationally
recognized overnight courier service or registered mail, postage prepaid, return
receipt requested, and shall be deemed given when so delivered by hand or
facsimile, on the fifth Business Day after deposit in the mail and on the first
Business Day following the date on which such communication is sent when
delivered by overnight courier service. Notices shall be sent to the Parties as
follows or to such other Person and address that a Party may specify in writing:

                                       17
<PAGE>   18
         If to Instinet:

                Instinet Global Services Limited
                _____________________________
                _____________________________
                _____________________________
                Attention:  _________________
                Tel:  _______________________
                Fax:  _______________________

         With a copy to

                Cleary, Gottlieb, Steen & Hamilton
                One Liberty Plaza
                New York, New York 10006
                Attention:  Joshua Rawson
                Tel:  (212) 225-2000
                Fax:  (212) 225-3999

         If to Reuters:

                Reuters Limited
                85 Fleet Street
                London, England
                EC4P 4 AJ
                Attention:  General Counsel
                Tel:  011-44171-250-1122
                Fax:  011-44171-324-5406

         With a copy to

                Simpson Thacher & Bartlett
                425 Lexington Avenue
                New York, New York 10017
                Attention:  Vincent Pagano
                Tel:  (212) 455-2000
                Fax:  (212) 455-2502

            9.2   Bankruptcy. All rights and licenses granted to Reuters in
Sections 2.1 and 2.2 are, and shall otherwise be deemed to be, for purposes of
Section 365(n) of the U.S. Bankruptcy Code (11 U.S.C. Section 101, et seq.),
licenses to rights of "intellectual property" as defined thereunder.
Notwithstanding any provision contained herein to the contrary, if Instinet is
under any proceeding under the Bankruptcy Code and the trustee in bankruptcy of
Instinet or Instinet as a debtor in possession rightfully elects to reject this
Agreement, Reuters may, pursuant to 11 U.S.C. Section 365(n)(1) and (2), retain
any and all rights hereunder granted to it to the maximum extent permitted by
law, subject to the payments, if any, specified herein.

                                       18
<PAGE>   19
            9.3   Export Regulation. Neither Reuters nor any of its sublicensees
shall export, directly or indirectly, any Licensed Technology or any other
Intellectual Property licensed to Reuters under this Agreement or any Reuters
Products utilizing any Licensed Technology to any country for which the U.S.
Government or any agency thereof at the time of export requires an export
license or other government approval without first obtaining such license or
approval.

            9.4   Waiver or Delay. Any waiver of any kind or character by a
Party of a breach of this Agreement must be in writing, shall be effective only
to the extent set forth in such writing, and shall not operate or be construed
as a waiver of any subsequent breach of the other Party. No failure of a Party
to insist upon strict compliance by the other with any obligation or provision
hereunder, and no custom or practice of the Parties at variance with the terms
hereof, shall constitute a waiver of such Party's right to demand exact
compliance with the terms of this Agreement, nor shall a Party's delay or
omission in exercising any right, power or remedy upon a breach or default by
the other Party impair any such right, power or remedy. The exercise of any
right or remedy provided by this Agreement shall be without prejudice to the
right to exercise any other right or remedy provided by law or equity.

            9.5   Assignment. Reuters and Instinet may assign this Agreement to
an Affiliate that has a market capitalization or net worth at least as high as
the assigning party as of the date of the assignment. Subject to the foregoing,
neither Party may, directly or indirectly, assign or transfer this Agreement or
any of its rights, duties or obligations hereunder, without the prior written
consent of the other Party, which consent shall not unreasonably be withheld. A
Change in Control of a Party or a merger, reorganization or sale of all or
substantially all of a Party's assets shall not be deemed an "assignment" for
purposes of this Section 9.5; provided that any such transaction involving, in
the case of Reuters, any Instinet Competitor shall require the prior written
consent of Instinet, which may be withheld in Instinet's sole discretion. If
Instinet sells, assigns or transfers any of the Licensed Technology (other than
in a transaction in which Section 9.7 is applicable, the provisions of Section
9.7 to control such transaction) the purchaser, assignee or transferee thereof
must assume in writing Instinet's obligations under this Agreement in connection
therewith. In the event of a permitted assignment hereunder, any assignee shall
be deemed a "Party" hereto for all purposes hereof. Nothing in this Section 9.5
shall be read to modify or limit the Parties' rights and obligations in Section
9.7 hereunder. Any purported assignment or transfer by a Party in violation of
this Section 9.5 shall be null and void ab initio and of no force or effect.

            9.6   Sales Tax. The Parties shall reasonably cooperate with one
another in order to minimize sales and use taxes applicable to each of them as a
result of the transactions contemplated hereby, provided that neither Party
shall be required to act in a manner that is disadvantageous to itself. Reuters
shall be responsible for the payment of all taxes arising from, or incurred in
connection with, Reuters' or any Reuters Parties' use of the Licensed
Technology, or any portion thereof, but, in each case, excluding any taxes based
upon Instinet's income.

            9.7   Right of First Refusal. (a) If Instinet receives a bona fide
offer (the "Offer") from a Third Party (an "Offeror") to purchase all or
substantially all of the Fixed Income Business taken as a whole (or to take a
license to the Instinet Property that shall have substantially the same effect
or purpose) or the voting stock of any Affiliate of Instinet engaged

                                       19
<PAGE>   20
in the Fixed Income Business such that the entity which owns such Fixed Income
Business shall no longer be an Affiliate of Instinet (collectively, the "Offered
Assets") which Instinet wishes to accept, Instinet shall cause the Offer to be
reduced to writing and shall notify Reuters in writing (the "Offer Notice") of
its wish to accept the Offer, and shall be entitled to accept such Offer,
subject to the provisions of this Section 9.7. The Offer Notice will disclose in
reasonable detail the proposed terms and conditions of the Offer (including, in
the event that the consideration to be received by Instinet in the Offer
includes non-cash consideration, Instinet's estimate of the cash value of such
non-cash consideration), and shall be accompanied by a true copy of the Offer
(at Instinet's option, redacting or removing any identifying information
respecting the Offeror). After delivery of the Offer Notice, Instinet shall
provide Reuters with the same due diligence materials and cooperation as
provided to the Offeror. Reuters or the Reuters Parties may elect to purchase
all (but not, in the aggregate, less than all) of such Offered Assets at the
price and on the terms specified in the Offer Notice by delivering Notice of
such election (an "Election Notice") to Instinet as soon as practicable, but in
any event within fifteen (15) days after delivery of the Offer Notice (the
"Election Period"). In the event that the terms of any Offer provide for the
delivery of non-cash consideration for the Offered Assets, Reuters or the
Reuters Party, as the case may be, may deliver cash for such Offered Assets in
an amount agreed by Instinet and Reuters to be equal to the non-cash
consideration, or, in the absence of such agreement, in an amount determined by
an investment banking firm of national reputation selected by mutual agreement
of Instinet and Reuters, provided that such investment banking firm shall not
have a material direct or indirect financial interest or other relationship with
any of the Parties or their respective Affiliates.

            (b)   If Reuters or a Reuters Party has elected to purchase all the
Offered Assets from Instinet, a binding purchase agreement (containing, at
Instinet's request, a breakup fee payable by Reuters to Instinet in an amount
and upon conditions customary in transactions of such type) shall be executed as
soon as practicable after the delivery of the Election Notice, but in any event
within thirty (30) days after the expiration of the Election Period (unless a
longer period of time is necessary to comply with the requirements of the
Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, in which case
such longer period), with the transaction to be consummated fully as soon as
reasonably possible thereafter.

            (c)   If Reuters (i) notifies Instinet within the Election Period
that it has elected not to purchase all of the Offered Assets being offered,
(ii) fails to respond during the Election Period; or (iii) timely notifies
Instinet of its election to purchase, but the Parties do not timely execute the
binding purchase agreement in Section 9.7(b) due to no fault of Instinet (any of
the foregoing dates, an "Unrestricted Sale Date"), Instinet may, for a period of
six months after the Unrestricted Sale Date, transfer all the Offered Assets to
the Offeror or any other Third Party, subject to the transferee or purchaser's
assumption in writing of all of Instinet's obligations hereunder, solely at a
price no less than the price specified in the Offer Notice and solely on other
terms no less favorable to Instinet than those contained in the Offer. If, at
the end of such six-month period, Instinet has not completed the transfer of
such Offered Assets as aforesaid, all the restrictions on transfer contained in
this Agreement shall again be in effect with respect to such Offered Assets. Any
purported transfer by Instinet in violation of this Section 9.7 shall be null
and void ab initio and of no force or effect.

                                       20
<PAGE>   21
            9.8   Force Majeure. If by reason of labor disputes, strikes,
lockouts, riots, war, inability to obtain labor or materials, earthquake, fire
or other action of the elements, accidents, governmental restrictions,
appropriation or other cause beyond the reasonable control of a Party hereto,
either Party is unable to perform in whole or in part its obligations as set
forth in this Agreement, then such Party shall be relieved of those obligations
to the extent it is so unable to perform and such inability to perform shall not
make such Party liable to the other Party. Neither Party shall be liable for any
loss, injury, delay or damages suffered or incurred by the other Party due to
the above causes.

            9.9   Severability. The provisions of this Agreement are severable
and if any one or more such provisions shall be determined to be invalid,
illegal or unenforceable, in whole or in part, the validity, legality and
enforceability of any of the remaining provisions or portions thereof shall not
in any way be affected or impaired thereby and shall nevertheless be binding
between the Parties hereto as long as the remaining provisions do not
fundamentally alter the relations among the Parties.

            9.10  Headings. The Section and Article headings and captions of
this Agreement are included merely for convenience of reference. They are not to
be considered part of, or to be used in interpreting, this Agreement and in no
way limit or affect any of the contents of this Agreement or its provisions.

            9.11  Governing Law. This Agreement shall be governed by, and
constructed and interpreted in accordance with, the law of the State of New
York. The Parties exclude in its entirety the application to this Agreement of
the United Nations Convention on Contracts for the International Sale of Goods.
Any dispute arising out of this Agreement shall be brought in, and the Parties
consent to personal and exclusive jurisdiction of a venue in, the State and
federal courts located within New York City, New York.

            9.12  Relationship of the Parties. Nothing contained in this
Agreement, as such, shall be construed as creating any agency, partnership, or
other form of joint enterprise between Instinet and Reuters. The relationship
between Instinet and Reuters shall at all times be that of independent
contractors with respect to the matters contemplated by this Agreement. Neither
Instinet nor Reuters shall have authority to contract for or bind the other in
any manner whatsoever. This Agreement confers no rights upon a Party except
those expressly granted herein.

            9.13  Entire Agreement. This Agreement is the complete, entire,
final and exclusive statement of the terms and conditions of the agreement
between the Parties. This Agreement supersedes, and the terms of this Agreement
govern, any prior agreements, term sheets or letters of intent between the
Parties with respect to the subject matter hereof. This Agreement, including
this Section 9.13, may not be modified except in a writing executed by duly
authorized representatives of the Parties.

            9.14  Non-Solicitation. Reuters and the Reuters Subsidiaries on the
one hand and Instinet on the other hand shall not solicit the employees of the
other that have material knowledge relating to the Licensed Technology for two
years after the Effective Date; provided

                                       21
<PAGE>   22
that this provision shall not be violated if such employees respond to a general
recruitment advertising or solicitation by the other Party.

            9.15  Subcontractors. Each party shall have the right to appoint and
use Third Party subcontractors with respect to the performance of its
obligations hereunder; provided that such Party remains fully responsible and
liable for such obligations and such subcontractor's performance hereunder.

            9.16  Counterparts. This Agreement may be executed in counterparts,
each of which shall be deemed an original, but all of which together shall
constitute one and the same instruments.

            9.17  Publicity. Subject to the terms and conditions of this
Agreement, the Parties shall maintain the confidentiality of this Agreement and
not disclose or discuss its contents or the matters contemplated herein other
than with Affiliates and advisors that are subject to confidentiality
restrictions or duties without the written consent of the other Party, subject
in each case to applicable law. No press release or similar public communication
regarding this Agreement or the matters contemplated herein shall be made
without the prior written consent of both Parties.

                                       22
<PAGE>   23
            IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to
be signed by their respective duly authorized officers or representatives as of
the date first above written.

INSTINET GLOBAL SERVICES LIMITED         REUTERS LIMITED

By:_________________________________     By:_________________________________

Name:_______________________________     Name:_______________________________

Title:______________________________     Title:______________________________

Date:_______________________________     Date:_______________________________

                                       23<PAGE>   1
                                                                   EXHIBIT 10.27

                              EMPLOYMENT AGREEMENT

                This EMPLOYMENT AGREEMENT (the "Agreement") is entered into as
of this 30th day of April, 2001 by and between Instinet Group LLC, a Delaware
limited liability company (the "Company"), and Andre-Francois Helier Villeneuve
("Executive").

                                   WITNESSETH:

                WHEREAS, Executive is currently employed by the Company as its
Chairman;

                WHEREAS, the Company desires to continue the employment of
Executive;

                WHEREAS, the Company and Executive desire to set forth the terms
and conditions of Executive's continued employment with the Company and
Executive desires to accept such employment on the terms and conditions set
forth herein;

                WHEREAS, this form of Executive Employment Agreement has been
approved by the Compensation Committee of the Company on March 2, 2001;

                WHEREAS, each of the Company and Executive agrees that Executive
has had and will continue to have a prominent role in the management of the
business, and the development of the goodwill, of the Company and its
Affiliates, and has established and developed and will continue to establish and
develop relations and contacts with the principal customers and suppliers of the
Company and its Affiliates in the United States and Europe (collectively, the
"Restricted Territory"), all of which constitute valuable goodwill of, and could
be used by Executive to compete unfairly with, the Company and its Affiliates;
and

                WHEREAS, (i) in the course of his employment with the Company,
Executive has obtained and will continue to obtain confidential and proprietary
information and trade secrets concerning the business and operations of the
Company and its Affiliates in the Restricted Territory that could be used to
compete unfairly with the Company and its Affiliates; (ii) Executive has and
will continue to create and develop certain work products, inventions and other
intellectual property which constitute an essential portion of the property of
the Company and its Affiliates, (iii) the covenants and restrictions contained
in Sections 8 through 14, inclusive, are intended to protect the legitimate
interests of the Company and its Affiliates in their respective goodwill, trade
secrets and other confidential and proprietary information and intellectual
property; and (iv) Executive desires to be bound by such covenants and
restrictions.

                NOW, THEREFORE, in consideration of the premises and the mutual
covenants and promises contained herein and for other good and valuable
consideration, the Company and Executive hereby agree as follows:

                1.     Agreement to Continue Employment. Upon the terms and
subject to the conditions of this Agreement, the Company hereby continues the
employment of Executive, and Executive hereby accepts such continued employment
with the Company.

<PAGE>   2

                2.     Term; Position and Responsibilities.

                (a)    Term of Employment. Unless Executive's employment shall
sooner terminate pursuant to Section 7, the Company shall employ Executive on
the terms and subject to the conditions of this Agreement for a term commencing
on the date hereof (the "Commencement Date") and ending on the date of the 2003
Annual General Meeting of Instinet Global Services Limited or April 30, 2003,
whichever is the earlier (the "Term"). The period during which Executive is
employed by the Company pursuant to this Agreement shall be referred to as the
"Employment Period."

                (b)    Position and Responsibilities. During the Employment
Period, Executive shall serve as the executive Chairman of the Company and shall
have such duties and responsibilities as are customarily assigned to individuals
serving in such position and such other duties consistent with Executive's title
and position as the Board of Directors of the Company (the "Board") specifies
from time to time. Executive shall devote all of his skill, knowledge,
commercial efforts and working time to the conscientious and faithful
performance of his duties and responsibilities for the Company (except for (i)
vacation time as provided by Company policy and absence for sickness or similar
disability and (ii) to the extent that it does not interfere with the
performance of Executive's duties hereunder, (A) such reasonable time as may be
devoted to the fulfillment of Executive's civic responsibilities and, subject to
the prior written approval of the Board and to compliance with the provisions of
Sections 8 through 14, inclusive, service on boards of directors of other
corporations and entities and (B) such reasonable time as may be necessary from
time to time for personal financial matters).

                3.     Base Salary. As compensation for the services to be
performed by Executive during the Employment Period, the Company shall pay
Executive a base salary at an annualized rate of $511,294.50, payable in
installments on the Company's regular payroll dates. The Company shall review
Executive's base salary annually during the period of his employment hereunder
and, in its sole discretion, may adjust such base salary from time to time based
upon such factors as the Compensation Committee of the Board (the "Compensation
Committee") shall consider relevant. The annual base salary payable to Executive
under this Section 3 shall hereinafter be referred to as the "Base Salary".

                4.     Incentive Compensation Arrangements.

                (a)    Annual Incentive Bonus. During the Employment Period and
subject to the review and approval of the Compensation Committee, Executive
shall be eligible to participate in the annual bonus program maintained by the
Company for its senior executives. Provided that, except to the extent expressly
provided otherwise in Section 7(f), Executive's employment has not terminated
prior to the last day of the fiscal year of the Company in respect of which any
bonus is payable, Executive shall have the opportunity to receive an annual
bonus under such program (the "Bonus"), which may be in cash, restricted stock,
options or other noncash compensation, in an amount to be determined by the
Compensation Committee based on the achievement by the Company and Executive of
such performance objectives as may be established from time to time by the
Compensation Committee or other committee of the Board.

                                       2

<PAGE>   3

                (b)    Option Grants. During the Employment Period, Executive
shall be eligible to participate in the Instinet 2000 Stock Option Plan (as the
same may be amended and in effect from time to time, the "2000 Option Plan") and
any subsequent stock option plan maintained by the Company for its senior
executives, subject to the review and approval of the Compensation Committee.
The terms and conditions of all options to purchase shares of common stock
granted to Executive under the 2000 Option Plan or under any prior or subsequent
stock option plan maintained by the Company or its Affiliates (including any
options granted to Executive prior to the Commencement Date) (collectively, the
"Options"), including the grant, vesting, exercise, payment and all other terms
of such Options, shall be governed by the terms of the stock option plan under
which such Options were granted, as such plan or plans may be amended and in
effect from time to time.

                5.     Employee Benefits. During the Employment Period,
Executive shall be eligible to participate in the employee benefit plans and
programs maintained by the Company from time to time in which senior executives
of the Company are eligible to participate, including to the extent maintained
by the Company life, medical, dental, accidental and disability insurance plans
and profit sharing, pension, retirement, deferred compensation and savings
plans, in accordance with the terms and conditions thereof as in effect from
time to time. The benefits referred to in this Section 5 shall be provided to
Executive on a basis that is commensurate with Executive's position and duties
with the Company.

                6.     Perquisites and Expenses.

                (a)    General. During the Employment Period, Executive shall be
eligible to participate in all special benefit or perquisite programs of the
Company generally available from time to time to senior executives of the
Company, on the terms and conditions thereof as in effect from time to time.

                (b)    Business Travel, Lodging. etc. During the Employment
Period, the Company shall reimburse Executive for reasonable travel, lodging,
meal and other reasonable expenses incurred by him in connection with the
performance of his duties and responsibilities hereunder upon submission of
evidence, satisfactory to the Company, of the incurrence and purpose of each
such expense and otherwise in accordance with terms and conditions of the
Company's business expense reimbursement policy applicable to its senior
executives as in effect from time to time.

                (c)    Vacation. During the Employment Period, Executive shall
be entitled to paid vacation on an annualized basis in the amount provided by
Company policy, without carryover accumulation.

                7.     Termination of Employment.

                (a)    Termination Due to Death or Disability. Executive's
employment may be terminated by the Company due to Executive's Disability (as
defined in the Company's Human Resources policies). In the event that
Executive's employment hereunder terminates due to his death or is terminated by
the Company due to Executive's Disability, no termination benefits shall be
payable to or in respect of Executive except as provided in Section 7(f) (ii).

                                        3

<PAGE>   4
                  (b)      Termination by the Company for Cause. Executive's
employment may be terminated by the Company for Cause (as defined in the 2000
Option Plan). In the event of a termination of Executive's employment by the
Company for Cause, no termination benefits shall be payable to or in respect of
Executive except as provided in Section 7(f)(ii).

                  (c)      Termination Without Cause. Executive's employment may
be terminated by the Company Without Cause (as defined below). In the event of a
termination of Executive's employment by the Company Without Cause, no
termination benefits shall be payable to or in respect of Executive except as
provided in Section 7(f)(i). For purposes of this Agreement and the Options, a
termination "Without Cause" shall mean a termination of Executive's employment
by the Company other than due to Executive's death or Disability as described in
Section 7(a) and other than for Cause as described in Section 7(b).

                  (d)      Termination by Executive. Executive may terminate his
employment for any reason, including for Good Reason (as defined below). In the
event of a termination of Executive's employment by Executive other than for
Good Reason, no termination benefits shall be payable to or in respect of
Executive except as provided in Section 7(f)(ii) and in the event of a
termination of Executive's employment by Executive for Good Reason, no
termination benefits shall be payable to or in respect of Executive except as
provided in Section 7(f)(i). For purposes of this Agreement, a termination of
employment by Executive for "Good Reason" shall mean a termination by Executive
of his employment with the Company within 30 days following the occurrence,
without Executive's consent, of any of the following events: (i) a material
diminution in the Executive duties, authority, position or responsibilities;
(ii) a material decrease in the Executive's base pay, fees, incentive
compensation opportunities, and/or employee benefits and prerequisites; or (iii)
a requirement that the Executive relocate his or her primary place of employment
or service by more that 30 miles; provided that the Executive shall have given
the Company or the relevant Affiliate of the Company notice of the event or
events constituting Good Reason and the Company or such Subsidiary shall have
failed to cure such event or events within 10 business days after receipt of
such notice.

                  (e)      Notice of Termination; Date of Termination.

                  (i)      Notice of Termination. Any termination by the Company
pursuant to Section 7(a), 7(b) or 7(c), or by Executive pursuant to Section
7(d), shall be communicated by a written Notice of Termination addressed to the
other party to this Agreement. A "Notice of Termination" shall mean a notice
stating that Executive or the Company, as the case may be, is electing to
terminate Executive's employment with the Company, stating the proposed
effective date of such termination, indicating the specific provision of this
Section 7 under which such termination is being effected and, if applicable,
setting forth in reasonable detail the circumstances claimed to provide the
basis for such termination.

                  (ii)     Date of Termination. The term "Date of Termination"
shall mean (i) if Executive's employment is terminated by his death, the date of
his death, (ii) if Executive's employment is terminated by the Company for
Cause, the date on which Notice of Termination is given or, if later, the
effective date of termination specified in such Notice of Termination, and (iii)
if Executive's employment is terminated by the Company Without Cause, due to
Executive's Disability or by Executive for any reason, the date specified in the
applicable Notice

                                       4
<PAGE>   5

of Termination provided that such date shall not be less than 30 days nor more
than 60 days after the date on which Notice of Termination is given.

                  (f)      Payments Upon Certain Terminations.

                  (i)      In the event of a termination of Executive's
employment by the Company Without Cause or a termination by Executive of his
employment for Good Reason during the Employment Period, the Company shall pay
to Executive (or, following his death, to Executive's estate) within 30 days of
the Date of Termination his (x) full Base Salary through the Date of
Termination, (y) reimbursement for any unreimbursed business expenses incurred
by Executive prior to the Date of Termination that are subject to reimbursement
pursuant to Section 6(b) and (z) payment for vacation time accrued as of the
Date of Termination but unused (such amounts under clauses (x), (y) and (z),
collectively the "Accrued Obligations"). In addition, in the event of any such
termination of Executive's employment, provided Executive executes and delivers
to the Company a Release and Discharge of Claims in a form acceptable to the
Company, Executive (or, following his death, Executive's estate) shall be
entitled to the following payments and benefits, as liquidated damages:

                  (A)      continued payments of the Base Salary, payable in
         installments in accordance with the Company's regular payroll policies,
         for the period beginning on the Date of Termination and ending on the
         second anniversary of the Date of Termination or when Executive reaches
         the age of 60 years, whichever is earlier (the "Severance Period");

                  (B)      a portion of Executive's Bonus for the fiscal year of
         the Company that includes the Date of Termination, such portion to
         equal the product (such product, the "Pro Rata Bonus") of (1) the Bonus
         that would have been payable to Executive for such year had he remained
         employed for the entire fiscal year and had Executive and the Company
         each achieved (but not exceeded) the target performance objectives for
         such year established by the Board or a committee thereof, multiplied
         by (2) a fraction, the numerator of which is equal to the number of
         days in such fiscal year that precede the Date of Termination and the
         denominator of which is equal to 365, such amount to be payable to
         Executive within five business days following the date (the "Bonus
         Payment Date") annual bonuses for such fiscal year are actually paid by
         the Company to its active executives;

                  (C)      payment of an amount equal to 200% of the Average
         Bonus (as defined below) multiplied, in the event that the Date of
         Termination falls on a date after Executive reaches the age of 58
         years, by a fraction, the numerator of which is equal to the total
         number of days (working or non-working) between the day Executive
         reaches the age of 58 and the Date of Termination and the denominator
         of which is equal to 730, such amount to be paid within five business
         days following the Bonus Payment Date for the fiscal year of the
         Company that includes the Date of Termination;

                  (D)      continued coverage during the Severance Period under
         the Company's medical and health insurance plans referred to in Section
         5 (the "Continued Benefits") for Executive and his eligible dependents
         participating in such plans immediately prior to the

                                       5
<PAGE>   6

          Date of Termination, subject to timely payment by Executive of all
          premiums, contributions and other co-payments required to be paid by
          senior executives of the Company under the terms of such plans as in
          effect from time to time.

                  The term "Average Annual Bonus" means the average of the
annual cash bonuses plus the value at the time of award of any non-cash bonuses
paid to Executive for each of the three complete fiscal years of the Company
ending immediately prior to the Date of Termination during which Executive was
employed by the Company or, if Executive has been employed by the Company for an
aggregate period of less than three fiscal years, the average of the annual
bonuses paid to Executive by the Company for Executive's period of employment.

                  Executive shall not have a duty to mitigate the costs to the
Company under this Section 7 (f) (i), nor shall any payments from Company to
Executive of Base Salary, Average Annual Bonus and Pro Rata Bonus be reduced,
offset or canceled by any compensation or fees earned by (whether or not paid
currently) or offered to Executive during the Severance Period by a subsequent
employer or other Person (as defined below) for which Executive performs
services, including but not limited to consulting services. The foregoing
notwithstanding, should Executive receive benefits coverage by a subsequent
employer during the Severance Period, all health and medical benefits coverage
provided by the Company to Executive shall immediately terminate.

                  (ii)     If Executive's employment shall terminate upon his
death or Disability or if the Company shall terminate Executive's employment for
Cause or Executive shall terminate his employment without Good Reason in any
such case during the Employment Period, the Company shall pay to Executive (or,
in the event of Executive's death, to his estate) the Accrued Obligations within
30 days following the Date of Termination. In addition, if Executive's
employment shall terminate upon his death or Disability during the Employment
Period, the Company shall pay to Executive (or, in the event of Executive's
death, to his estate) the Pro Rata Bonus, if any, in one lump sum within five
business days following the Bonus Payment Date for the fiscal year of the
Company that includes the Date of Termination.

                  (iii)    Except as specifically set forth in this Section
7(f), no benefits payable to Executive under any otherwise applicable plan,
policy, program or practice of the Company or its Affiliates in which Executive
was a participant during his employment with the Company or its Affiliates shall
be limited by this Section 7(f), provided that Executive shall not be entitled
to receive any payments or benefits under any such plan, policy, program or
practice providing any bonus or incentive compensation or severance compensation
or benefits (and the provisions of this Section 7(f) shall supersede the
provisions of any such plan, policy, program or practice).

                  (g)      Resignation upon Termination. Effective as of any
Date of Termination under this Section 7 or otherwise as of the date of
Executive's termination of employment with the Company, Executive shall resign,
in writing, from all Board memberships and other positions then held by him with
the Company and its Affiliates.

                  8.       Unauthorized Disclosure. During the period of
Executive's employment with the Company and following any termination of such
employment, without the prior written consent of the Board or its authorized
representative, except to the extent required by an order of

                                        6
<PAGE>   7
a court having jurisdiction or under subpoena from an appropriate government
agency, in which event, Executive shall use his best efforts to consult with the
Board prior to responding to any such order or subpoena, and except as required
in the appropriate performance of his duties hereunder, Executive shall not
disclose any confidential or proprietary trade secrets, customer lists,
drawings, designs, programs, software, protocols, information regarding product
development, marketing plans, sales plans, manufacturing plans, management
organization information (including but not limited to data and other
information relating to members of the Board of Directors of the Company or any
of its Affiliates or to management of the Company or any of its Affiliates),
operating policies or manuals, business plans, financial records, packaging
design or other financial, commercial, business or technical information (a)
relating to the Company or any of its Affiliates or (b) that the Company or any
of its Affiliates may receive belonging to suppliers, customers or others who do
business with the Company or any of its Affiliates (collectively, "Confidential
Information") to any third person unless such Confidential Information has been
previously disclosed to the public or is in the public domain (other than by
reason of Executive's breach of this Section 8).

              9. Non-Competition. During the period of Executive's employment
with the Company and, following any termination thereof, the period ending on
the later of (a) six months after the Date of Termination and (b) the last day
of the Severance Period (such periods, collectively, the "Restriction Period"),
Executive shall not, directly or indirectly, become employed by, engage in
business with, serve as an agent or consultant to, or become a partner, member,
principal, stockholder or other owner (other than a holder of less than 1% of
the outstanding voting shares of any publicly held company) of, any Person that
competes or has a reasonable potential for competing, anywhere in the Restricted
Territory, with the Business (as defined below).

              10. Non-Solicitation of Employees. During the Restriction Period,
Executive shall not, directly or indirectly, for his own account or for the
account of any other Person, anywhere in the Restricted Territory, (i) solicit
for employment, employ or otherwise interfere with the relationship of the
Company or any of its Affiliates with any natural person throughout the world
who is or was employed by or otherwise engaged to perform services for the
Company or any of its Affiliates at any time during which Executive was employed
by the Company or (in the case of any such activity during the period of
Executive's employment with the Company) or during the six-month period
preceding such solicitation, employment or interference (in the case of any such
activity after the date of Executive's termination of employment), other than
any such solicitation or employment on behalf of the Company or its Affiliates
during Executive's employment with the Company, or (ii) induce any employee of
the Company or its Affiliates who is a member of management to engage in any
activity which Executive is prohibited from engaging in under any of Sections
8, 9, 10 or 11 or to terminate his employment with the Company. For purposes of
this Section 10 and Section 11, the terms "solicit" and "solicitation" mean any
communication of any kind whatsoever, regardless of by whom initiated, inviting,
encouraging or requesting any person or entity to take or refrain from taking
any action.

              11. Non-Solicitation of Customers. During the Restriction Period,
Executive shall not, directly or indirectly, for his own account or for the
account of any other Person, anywhere in the Restricted Territory, solicit or
otherwise attempt to establish any business relationship of a nature that is
competitive with the business or relationship of the Company or

                                        7

<PAGE>   8

any of its Affiliates with any Person which is or was a customer, client or
distributor of the Company or any of its Affiliates at any time during which
Executive was employed by the Company (in the case of any such activity during
the period of Executive's employment with the Company) or during the
twelve-month period preceding the Date of Termination (in the case of any such
activity after the date of Executive's termination of employment), other than
any such solicitation on behalf of the Company or any of its Affiliates during
Executive's employment with the Company.

              12. Return of Documents. In the event of the termination of
Executive's employment for any reason, Executive shall deliver to the Company
all of the property of the Company and its Affiliates and the non-personal
documents and data of any nature and in whatever medium of each of the Company
and its Affiliates, and he shall not take with him any such property, documents
or data or any reproduction thereof, or any documents containing or pertaining
to any Confidential Information.

              13. Work Product. Executive agrees to disclose in confidence to
the Company any and all inventions, improvements, designs, original works of
authorship, formulas, processes, computer software programs, databases and trade
secrets (including, but not limited to, market information and marketing
designs, proposals and concepts) (all taken together, the "Developments") that
Executive makes, conceives, first reduces to practice, or creates, either alone
or jointly with others while Executive is employed by the Company and that: (a)
result from any work performed by Executive for the Company, whether or not in
the normal course of Executive's duties or during normal business hours; (b)
reasonably relate to the actual or anticipated business, services, products,
research or development of Executive; or (c) are developed with the use of the
Company time, equipment, supplies or facilities. Executive must promptly
disclose Developments to the Company whether or not such Developments are
patentable, copyrightable or protectible as trade secrets. Executive understands
and agrees that all Developments shall be the sole and exclusive property of the
Company and shall constitute "work made for hire" (as that term is defined under
Section 101 of the U.S. Copyright Act, 17 U.S.C. Section 101) with the Company
being the person for whom the work was prepared and that all intellectual
property rights therein shall be the sole and exclusive property of the Company,
and that in the event that any such Development is deemed not to be a "work made
for hire," Executive hereby irrevocably assigns, transfers and conveys to the
Company, exclusively and perpetually, all right, title and interest which
Executive may have or acquire in and to such Development throughout the world,
including without limitation any copyrights and patents, and the right to secure
registrations, renewals, reissues, and extensions thereof. Executive agrees to
sign any documents and to do all things necessary, without additional
compensation, whether during Executive's employment or after, to assist the
Company to register, perfect, maintain and/or enforce the Company's rights in
any Development, including without limitation any patent, copyright, trade
secret or other right or interest.

              14.   Injunctive Relief with Respect to Covenants: Forum, Venue
and Jurisdiction. Executive acknowledges and agrees that the covenants,
obligations and agreements of Executive contained in Sections 8, 9, 10, 11, 12,
13 and 14 relate to special, unique and extraordinary matters and that a
violation of any of the terms of such covenants, obligations or agreements will
cause the Company irreparable injury for which adequate remedies are not
available at law. Therefore, Executive agrees that the Company shall be entitled
to an injunction,

                                        8

<PAGE>   9

restraining order or such other equitable relief (without the requirement to
post bond) as a court of competent jurisdiction may deem necessary or
appropriate to restrain Executive from committing any violation of such
covenants, obligations or agreements. These injunctive remedies are cumulative
and in addition to any other rights and remedies the Company may have. The
Company and Executive hereby irrevocably submit to the exclusive jurisdiction of
the courts of New York, and the Federal courts of the United States of America,
in each case located in New York City in respect of the injunctive remedies set
forth in this Section 14 and the interpretation and enforcement of Sections 8,
9, 10, 11, 12, 13 and 14 insofar as such interpretation and enforcement relate
to any request or application for injunctive relief in accordance with the
provisions of this Section 14, and the parties hereto hereby irrevocably agree
that (a) the sole and exclusive appropriate venue for any suit or proceeding
relating solely to such injunctive relief shall be in such a court, (b) all
claims with respect to any request or application for such injunctive relief
shall be heard and determined exclusively in such a court, (c) any such court
shall have exclusive jurisdiction over the person of such parties and over the
subject matter of any dispute relating to any request or application for such
injunctive relief, and (d) each hereby waives any and all objections and
defenses based on forum, venue or personal or subject matter jurisdiction as
they may relate to an application for such injunctive relief in a suit or
proceeding brought before such a court in accordance with the provisions of this
Section 14. All disputes not relating to any request or application for
injunctive relief in accordance with this Section 14 shall be resolved by
arbitration in accordance with Section 17 (b).

              Notwithstanding any other provision hereof, the Company's
obligations to pay Executive any amount or provide Executive with any benefit or
right pursuant to Section 7(f) is subject to Executive's compliance with his
obligations under Sections 8 through 14, inclusive.

              15. Assumption of Agreement. The Company shall require any
Successor thereto, by agreement in form and substance reasonably satisfactory to
Executive, to expressly assume and agree to perform this Agreement in the same
manner and to the same extent that the Company would be required to perform it
if no such succession had taken place. Failure of the Company to obtain such
agreement prior to the effectiveness of any such succession shall be a breach of
this Agreement and shall entitle Executive to compensation from the Company in
the same amount and on the same terms as Executive would be entitled hereunder
if the Company had terminated Executive's employment Without Cause as described
in Section 7, except that for purposes of implementing the foregoing, the date
on which any such succession becomes effective shall be deemed the Date of
Termination.

              16. Entire Agreement. This Agreement (including the Exhibit
hereto) constitutes the entire agreement among the parties hereto with respect
to the subject matter hereof. All prior correspondence and proposals (including
but not limited to summaries of proposed terms) and all prior promises,
representations, understandings, arrangements and agreements relating to such
subject matter (including but not limited to those made to or with Executive by
any other Person and those contained in any prior employment, consulting or
similar agreement entered into by Executive and the Company or any predecessor
thereto or Affiliate thereof) are merged herein and superseded hereby.

                                        9

<PAGE>   10
                17.    Miscellaneous.

                (a)    Binding Effect; Assignment. This Agreement shall be
binding on and inure to the benefit of the Company and its successors and
permitted assigns. This Agreement shall also be binding on and inure to the
benefit of Executive and his heirs, executors, administrators and legal
representatives. This Agreement shall not be assignable by any party hereto
without the prior written consent of the other parties hereto, except as
provided pursuant to this Section 17(a). The Company may effect such an
assignment without prior written approval of Executive upon the transfer of all
or substantially all of its business and/or assets (by whatever means), provided
that the Successor to the Company shall expressly assume and agree to perform
this Agreement in accordance with the provisions of Section 15.

                (b)    Arbitration. Any dispute or controversy arising under or
in connection with this Agreement (except in connection with any request or
application for injunctive relief in accordance with Section 14) shall be
resolved by binding arbitration. The arbitration shall be held in New York City
and, except to the extent inconsistent with this Agreement, shall be conducted
in accordance with the Commercial Arbitration Rules of the American Arbitration
Association then in effect at the time of the arbitration, and otherwise in
accordance with principles which would be applied by a court of law or equity.
The arbitrator shall be acceptable to both the Company and Executive. If the
parties cannot agree on an acceptable arbitrator, the dispute shall be heard by
a panel of three arbitrators, one appointed by the Company, one appointed by
Executive, and the third appointed by the other two arbitrators. All expenses of
arbitration shall be borne by the party who incurs the expense, or, in the case
of joint expenses, by both parties in equal portions.

                (c)    Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of New York without reference
to principles of conflicts of laws.

                (d)    Taxes. The Company may withhold from any payments made
under this Agreement all applicable taxes, including but not limited to income,
employment and social insurance taxes, as shall be required by law.

                (e)    Amendments. No provision of this Agreement may be
modified, waived or discharged unless such modification, waiver or discharge is
approved by the Board or a Person authorized thereby and is agreed to in writing
by Executive. No waiver by any party hereto at any time of any breach by any
other party hereto of, or compliance with, any condition or provision of this
Agreement to be performed by such other party shall be deemed a waiver of
similar or dissimilar provisions or conditions at the same or at any prior or
subsequent time. No waiver of any provision of this Agreement shall be implied
from any course of dealing between or among the parties hereto or from any
failure by any party hereto to assert its rights hereunder on any occasion or
series of occasions.

                (f)    Severability. In the event that any one or more of the
provisions of this Agreement shall be or become invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions contained herein shall not be affected thereby.

                                       10

<PAGE>   11

                (g)    Notices. Any notice or other communication required or
permitted to be delivered under this Agreement shall be (i) in writing, (ii)
delivered personally, by courier service or by certified or registered mail,
first-class postage prepaid and return receipt requested, (iii) deemed to have
been received on the date of delivery or, if so mailed, on the third business
day after the mailing thereof, and (iv) addressed as follows (or to such other
address as the party entitled to notice shall hereafter designate in accordance
with the terms hereof):

                (A)    If to the Company, to it at:

                       Office of the General Counsel
                       Instinet Corporation
                       3 Times Square
                       New York, New York 10036

                (B)    if to Executive, to him at his residential address as
                       currently on file with the Company.

                (h)    Voluntary Agreement; No Conflicts. Executive represents
that he is entering into this Agreement voluntarily and that Executive's
employment hereunder and compliance with the terms and conditions of this
Agreement will not conflict with or result in the breach by Executive of any
agreement to which he is a party or by which he or his properties or assets may
be bound.

                (i)    Counterparts. This Agreement may be executed in
counterparts, each of which shall be deemed an original and all of which
together shall constitute one and the same instrument.

                (j)    Headings. The section and other headings contained in
this Agreement are for the convenience of the parties only and are not intended
to be a part hereof or to affect the meaning or interpretation hereof.

                (k)    Certain Definitions.

                "Affiliate": with respect to any Person, means any other Person
that, directly or indirectly through one or more intermediaries, Controls, is
Controlled by, or is under common Control with the first Person, including but
not limited to a Subsidiary of the first Person, a Person of which the first
Person is a Subsidiary, or another Subsidiary of a Person of which the first
Person is also a Subsidiary.

                "Business": means the creation and delivery of transactional
products and products related to the financial services sector and brokerage
services related thereto delivered largely, but not exclusively, through
advanced technology, that permit or aid the Company's customers to invest in,
purchase and sell securities (whether fixed income or equity, both during normal
market hours and after hours), and any and all other businesses that after the
date hereof, and from time to time during the Employment Period, are material
with respect to the Company's and its Affiliates' businesses.

                "Control": with respect to any Person, means the possession,
directly or indirectly, severally or jointly, of the power to direct or cause
the direction of the management

                                       11

<PAGE>   12

policies of such Person, whether through the ownership of voting securities, by
contract or credit arrangement, as trustee or executor, or otherwise.

                "Person": any natural person, firm, partnership, limited
liability company, association, corporation, company, trust, business trust,
governmental authority or other entity.

                "Subsidiary": with respect to any Person, each corporation or
other Person in which the first Person owns or Controls, directly or indirectly,
capital stock or other ownership interests representing 50% or more of the
combined voting power of the outstanding voting stock or other ownership
interests of such corporation or other Person.

                "Successor": of a Person means a Person that succeeds to the
first Person's assets and liabilities by merger, liquidation, dissolution or
otherwise by operation of law, or a Person to which all or substantially all the
assets and/or business of the first Person are transferred.

                IN WITNESS WHEREOF, the Company has duly executed this Agreement
by its authorized representatives, and Executive has hereunto set his hand, in
each case effective as of the date first above written.

                                      INSTINET GROUP LLC

                                      By: /s/ KENNETH MARSHALL
                                         -------------------------------
                                         Name: KENNETH MARSHALL
                                         Title: CHIEF OPERATING OFFICER

                                      Executive:

                                      ANDRE-FRANCOIS HELIER VILLENEUVE
                                      ---------------------------------------
                                      ANDRE-FRANCOIS HELIER VILLENEUVE

                                       12

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