Document:

exv10w19

 

    Exhibit 10.19

 

    LPL INVESTMENT
    HOLDINGS INC.

    2010 OMNIBUS EQUITY INCENTIVE PLAN

 

    1. DEFINED TERMS

 

    Exhibit A, which is incorporated by reference, defines the
    terms used in the Plan and sets forth certain operational rules
    related to those terms.

 

    2. PURPOSE

 

    The Plan has been established to advance the interests of the
    Company by providing for the grant to Participants of Awards.

 

    3. ADMINISTRATION

 

    The Administrator has discretionary authority, subject only to
    the express provisions of the Plan, to interpret the Plan;
    determine eligibility for and grant Awards; determine, modify or
    waive the terms and conditions of any Award; prescribe forms,
    rules and procedures; and otherwise do all things necessary to
    carry out the purposes of the Plan. Determinations of the
    Administrator made under the Plan will be conclusive and will
    bind all parties.

 

    4. LIMITS ON AWARDS UNDER THE PLAN

 

    (a) Number of Shares.  At the
    Effective Date, the maximum number of shares of Stock that may
    be delivered in satisfaction of Awards under the Plan shall be:

 

    (1) 12,055,945 shares of the Stock; plus

 

    (2) any shares of Stock that become available for grant
    under the Company’s Existing Plans after the Effective Date
    as a result of termination of awards under the Existing Plans;
    provided, that such shares will not be available for issuance of
    ISOs.

 

    (b) ISO Shares; Adjustments to Maximum Available
    Shares.  The maximum number of shares of Stock
    deliverable upon the exercise of ISOs is 10,000,000 Shares
    of Stock that are subject to Awards that have been terminated,
    cancelled or forfeited upon termination of Employment under
    Section 6(a)(4) without becoming exercisable shall be
    available again for future grant under the Plan. The number of
    shares of Stock delivered in satisfaction of Awards shall be
    determined net of shares of Stock withheld by the Company in
    payment of the exercise price of the Award or in satisfaction of
    tax withholding requirements with respect to the Award and, for
    the avoidance of doubt, without including any shares of Stock
    underlying Awards settled in cash or which otherwise expire or
    become unexercisable without having been exercised or are
    forfeited to or repurchased by the Company due to failure to
    vest. The limits set forth in this Section 4(b) shall be
    construed to comply with Section 422. To the extent
    consistent with the requirements of Section 422 and with
    other applicable legal requirements (including applicable stock
    exchange requirements), Stock issued under awards of an acquired
    company that are converted, replaced or adjusted in connection
    with the acquisition shall not reduce the number of shares
    available for delivery upon the exercise of Awards under the
    Plan.

 

    (c) Type of Shares.  Stock
    delivered by the Company under the Plan may be authorized but
    unissued Stock or previously issued Stock acquired by the
    Company. No fractional shares of Stock will be delivered under
    the Plan.

 

    (d) Section 162(m)
    Limits.  The maximum number of shares of Stock
    for which Stock Options may be granted to any person in a
    calendar year and the maximum number of shares of Stock subject
    to SARs granted to any person in any calendar year will each be
    400,000. The maximum number of shares subject to other Awards
    granted to any person in any calendar year will be
    100,000 shares. The maximum amount payable to any person in
    any year under Cash Awards will be $5,000,000. The foregoing
    provision will be construed in a manner consistent with
    Section 162(m).

 

    5. ELIGIBILITY AND PARTICIPATION

 

    The Administrator will select Participants from among those key
    Employees, registered representatives and directors of, and
    consultants and advisors to, the Company or its Affiliates who,
    in the opinion of the Administrator, are in a position to make a
    significant contribution to the success of the Company and its
    Affiliates; provided, that, subject to such express
    exceptions, if any, as the Administrator may establish,
    eligibility shall be further limited to those persons as to whom
    the use of a
    Form S-8
    registration statement is permissible. Eligibility for ISOs is
    limited to employees of the Company or of a “parent
    corporation” or “subsidiary corporation” of the
    Company as those terms are defined in Section 424 of the
    Code. Eligibility for Awards other than ISOs are limited to
    individuals described in the first sentence of this
    Section 5 who are providing direct services on the date of
    grant of the Award to the Company or to a subsidiary of the
    Company that would be described in the first sentence of Treas.
    Regs. 1.409A-1(b)(5)(iii)(E).

 

    6. RULES APPLICABLE TO AWARDS

 

    (a) All Awards

 

    (1) Award Provisions.  The
    Administrator will determine the terms of all Awards, subject to
    the limitations provided herein. By accepting (or, under such
    rules as the Administrator may prescribe, being deemed to have
    accepted) an Award, the Participant agrees to the terms of the
    Award and the Plan. Notwithstanding any provision of this Plan
    to the contrary, awards of an acquired company that are
    converted, replaced or adjusted in connection with the
    acquisition may contain terms and conditions that are
    inconsistent with the terms and conditions specified herein, as
    determined by the Administrator.

 

    (2) Term of Plan.  No Awards may be
    made after the date that is one day before the
    10th anniversary of the Effective Date, but previously
    granted Awards may continue beyond that date in accordance with
    their terms.

 

    (3) Transferability.  Neither ISOs
    nor, except as the Administrator otherwise expressly provides in
    accordance with the second sentence of this
    Section 6(a)(3), Awards that are not ISOs may be
    transferred other than by will or by the laws of descent and
    distribution, and during a Participant’s lifetime ISOs
    (and, except as the Administrator otherwise expressly provides
    in accordance with the second sentence of this
    Section 6(a)(3), other Awards requiring exercise that are
    not ISOs) may be exercised only by the Participant. The
    Administrator may permit Awards that are not ISOs, but not
    Awards that are ISOs, to be transferred by gift, subject to such
    limitations as the Administrator may impose.

 

    (4) Vesting, etc.  The
    Administrator may determine the time or times at which an Award
    will vest or become exercisable and the terms on which an Award
    requiring exercise will remain exercisable. Without limiting the
    foregoing, the Administrator may at any time accelerate the
    vesting or exercisability of an Award, regardless of any adverse
    or potentially adverse tax consequences resulting from such
    acceleration. Unless the Administrator expressly provides
    otherwise, however, the following rules will apply:

 

    (A) Immediately upon the cessation of the
    Participant’s Employment, each Award requiring exercise
    that is then held by the Participant or by the
    Participant’s permitted transferees, if any, will cease to
    be exercisable and will terminate, except to the extent
    otherwise provided in (B), (C), (D) or (E) below, and
    all other Awards that are then held by the Participant or by the
    Participant’s permitted transferees, if any, to the extent
    not already vested will be forfeited.

 

    (B) Subject to (C), (D) and (E) below, all Stock
    Options and SARs held by the Participant or the
    Participant’s permitted transferees, if any, immediately
    prior to the cessation of the Participant’s Employment, to
    the extent then exercisable, will remain exercisable for the
    lesser of (i) a period of 90 days or (ii) the
    period ending on the latest date on which such Stock Option or
    SAR could have been exercised without regard to this
    Section 6(a)(4), and will thereupon terminate;

 

    (C) All Stock Options and SARs held by a Participant or the
    Participant’s permitted transferees, if any, immediately
    prior to the Participant’s death or total and permanent
    disability (as determined by the Administrator in its sole
    discretion), to the extent then exercisable, will remain
    exercisable for the lesser of (i) the one year period
    ending with the first anniversary of the Participant’s
    death or the date on which the Participant becomes so disabled
    or (ii) the period ending on the latest date on which such
    Stock Option or SAR could have been exercised without regard to
    this Section 6(a)(4), and will thereupon terminate;

 

    (D) All Stock Options and SARs held by a Participant or the
    Participant’s permitted transferees, if any, immediately
    prior to the Participant’s Retirement, to the extent then
    exercisable will remain exercisable for the lesser of (i) a
    period of two years or (ii) the period ending on the latest
    date on which such Stock Option could have been exercised
    without regard to this Section 6(a)(4), and will thereupon
    terminate; provided that all Stock Options and SARs will
    terminate immediately in the event the Board determines that the
    Participant is (i) not in compliance with any
    non-competition or non-solicitation or non-disclosure agreement
    with the Company, or (ii) if no such agreement exists,
    engages in Competitive Activity, within twelve (12) months
    following the Participant’s Retirement in violation of a
    Participant’s Award agreement; and

 

    (E) All Stock Options and SARs held by a Participant or the
    Participant’s permitted transferees, if any, immediately
    prior to the cessation of the Participant’s Employment will
    immediately terminate upon such cessation if the Administrator
    in its sole discretion determines that such cessation of
    Employment is for Cause.

 

    (5) Competitive Activity.  The
    Administrator may cancel, rescind, withhold or otherwise limit
    or restrict any Award at any time if the Participant is not in
    compliance with all applicable provisions of the Award agreement
    and the Plan, or if the Participant breaches any agreement with
    the Company or its Affiliates with respect to non-competition,
    non-solicitation or confidentiality.

 

    (6) Taxes.  The delivery, vesting
    or retention of Stock under an Award is conditioned upon full
    satisfaction by the Participant of all tax withholding
    requirements with respect to the Award. The Administrator will
    make such provision for the withholding and payment of taxes as
    it deems necessary. Such taxes shall be remitted to the Company
    by cash or check acceptable to the Administrator or by other
    means acceptable to the Administrator. In particular, but not in
    limitation of the foregoing, the Administrator may, but need
    not, hold back shares of Stock from an Award or permit a
    Participant to tender previously owned shares of Stock in
    satisfaction of tax withholding requirements (but not in excess
    of the minimum withholding required by law).

 

    (7) Dividend Equivalents, Etc.  The
    Administrator may in its sole discretion provide for the payment
    of amounts in lieu of cash dividends or other cash distributions
    with respect to Stock subject to an Award whether or not the
    holder of such Award is otherwise entitled to share in the
    actual dividend or distribution in respect of such Award. Any
    payment of dividend equivalents or similar payments shall be
    established and administered consistent either with exemption
    from, or in compliance with, the requirements of
    Section 409A. In addition, any amounts payable in respect
    of Restricted Stock or Restricted Stock Units may be subject to
    such limits or restrictions as the Administrator may impose.

 

    (8) Rights Limited.  Nothing in the
    Plan will be construed as giving any person the right to
    continued employment or service with the Company or its
    Affiliates, or any rights as a stockholder except as to shares
    of Stock actually issued under the Plan. The loss of existing or
    potential profit in Awards will not constitute an element of
    damages in the event of termination of Employment for any
    reason, even if the termination is in violation of an obligation
    of the Company or any Affiliate to the Participant.

 

    (9) Section 162(m).  This
    Section 6(a)(9) applies to any Performance Award intended
    to qualify as performance-based for the purposes of
    Section 162(m) other than a Stock Option or SAR. In the
    case of any Performance Award to which this Section 6(a)(9)
    applies, the Plan and

 

    such Award will be construed to the maximum extent permitted by
    law in a manner consistent with qualifying the Award for such
    exception. With respect to such Performance Awards, the
    Administrator will pre-establish, in writing, one or more
    specific Performance Criteria no later than 90 days after
    the commencement of the period of service to which the
    performance relates (or at such earlier time as is required to
    qualify the Award as performance-based under
    Section 162(m)). Prior to grant, vesting or payment of the
    Performance Award, as the case may be, the Administrator will
    certify whether the applicable Performance Criteria have been
    attained and such determination will be final and conclusive. No
    Performance Award to which this Section 6(a)(9) applies may
    be granted after the first meeting of the stockholders of the
    Company held in 2015 until the listed performance measures set
    forth in the definition of “Performance Criteria” (as
    originally approved or as subsequently amended) have been
    resubmitted to and reapproved by the stockholders of the Company
    in accordance with the requirements of Section 162(m) of
    the Code, unless such grant is made contingent upon such
    approval.

 

    (10) Coordination with Other
    Plans.  Awards under the Plan may be granted
    in tandem with, or in satisfaction of or substitution for, other
    awards made under other compensatory plans or programs of the
    Company or its Affiliates. For example, but without limiting the
    generality of the foregoing, awards under other compensatory
    plans or programs of the Company or its Affiliates may be
    settled in Stock (including, without limitation, Unrestricted
    Stock) if the Administrator so determines, in which case the
    shares delivered shall be treated as awarded under the Plan (and
    shall reduce the number of shares thereafter available under the
    Plan in accordance with the rules set forth in Section 4).
    In any case where an award is made under another plan or program
    of the Company or its Affiliates and such award is intended to
    qualify for the performance-based compensation exception under
    Section 162(m), and such award is settled by the delivery
    of Stock or another Award under the Plan, the applicable
    Section 162(m) limitations under both the other plan or
    program and under the Plan shall be applied to the Plan as
    necessary (as determined by the Administrator) to preserve the
    availability of the Section 162(m) performance-based
    compensation exception with respect thereto.

 

    (11) Section 409A.  Each Award
    shall contain such terms as the Administrator determines, and
    shall be construed and administered, such that the Award either
    (i) qualifies for an exemption from the requirements of
    Section 409A to the extent applicable, or
    (ii) satisfies such requirements.

 

    (12) Certain Requirements of Corporate
    Law.  Awards shall be granted and administered
    consistent with the requirements of applicable Delaware law
    relating to the issuance of stock and the consideration to be
    received therefor, and with the applicable requirements of the
    stock exchanges or other trading systems on which the Stock is
    listed or entered for trading, in each case as determined by the
    Administrator.

 

    (b) Awards Requiring Exercise.

 

    (1) Time And Manner Of
    Exercise.  Unless the Administrator expressly
    provides otherwise, an Award requiring exercise will not be
    deemed to have been exercised until the Administrator receives a
    notice of exercise (in form acceptable to the Administrator),
    which may be an electronic notice, signed (including electronic
    signature in form acceptable to the Administrator) by the
    appropriate person and accompanied by any payment required under
    the Award. If the Award is exercised by any person other than
    the Participant, the Administrator may require satisfactory
    evidence that the person exercising the Award has the right to
    do so.

 

    (2) Exercise Price.  The exercise
    price (or the base value from which appreciation is to be
    measured) of each Award requiring exercise shall be 100% (in the
    case of an ISO granted to a ten-percent shareholder within the
    meaning of subsection (b)(6) of Section 422, 110%) of the
    fair market value of the Stock subject to the Award, determined
    as of the date of grant, or such other amount as the
    Administrator may determine in connection with the grant. No
    such Award, once granted, may be repriced other than in
    accordance with the terms of Section 9 below and
    stockholder approval requirements of the New York Stock
    Exchange, as applicable. Fair market value shall be determined
    by the Administrator consistent with the applicable requirements
    of Section 422 and Section 409A.

 

    (3) Payment Of Exercise
    Price.  Where the exercise of an Award is to
    be accompanied by payment, payment of the exercise price shall
    be by cash or check acceptable to the Administrator, or, if so
    permitted by the Administrator and if legally permissible,
    (i) through the delivery of unrestricted shares of Stock
    that have been outstanding for at least six months (unless the
    Administrator approves a shorter period) and that have a fair
    market value equal to the exercise price, (ii) through a
    broker-assisted exercise program acceptable to the
    Administrator, (iii) through the withholding of shares of
    Stock otherwise to be delivered upon exercise of the Award whose
    Fair Market Value is equal to the aggregate exercise price of
    the Award being exercised, (iv) by other means acceptable
    to the Administrator, or (v) by any combination of the
    foregoing permissible forms of payment. No Award requiring
    exercise or portion thereof may be exercised unless, at the time
    of exercise, the fair market value of the shares of Stock
    subject to such Award or portion thereof exceeds the exercise
    price for the Award or such portion. The delivery of shares in
    payment of the exercise price under clause (i) above may be
    accomplished either by actual delivery or by constructive
    delivery through attestation of ownership, subject to such rules
    as the Administrator may prescribe.

 

    (4) Maximum Term.  Awards requiring
    exercise will have a maximum term not to exceed ten
    (10) years from the date of grant (five (5) years from
    the date of grant in the case of an ISO granted to a ten-percent
    shareholder within the meaning of subsection (b)(6) of
    Section 422) from the date of grant.

 

    7. EFFECT OF CERTAIN TRANSACTIONS

 

    (a) Mergers, etc.  Except as
    otherwise provided in an Award, the Administrator shall, in its
    sole discretion, determine the effect of a Covered Transaction
    on Awards, which determination may include, but is not limited
    to, taking the following actions:

 

    (1) Assumption or Substitution.  If
    the Covered Transaction is one in which there is an acquiring or
    surviving entity, the Administrator may provide for the
    assumption or continuation of some or all outstanding Awards or
    for the grant of new awards in substitution therefor by the
    acquiror or survivor or an affiliate of the acquiror or survivor.

 

    (2) Cash-Out of Awards.  If the
    Covered Transaction is one in which holders of Stock will
    receive upon consummation a payment (whether cash, non-cash or a
    combination of the foregoing), then subject to
    Section 7(a)(5) below the Administrator may provide for
    payment (a “cash-out”), with respect to some or all
    Awards or any portion thereof, equal in the case of each
    affected Award or portion thereof to the excess, if any, of
    (A) the fair market value of one share of Stock times the
    number of shares of Stock subject to the Award or such portion,
    over (B) the aggregate exercise or purchase price, if any,
    under the Award or such portion (in the case of an SAR, the
    aggregate base value above which appreciation is measured), in
    each case on such payment terms (which need not be the same as
    the terms of payment to holders of Stock) and other terms, and
    subject to such conditions, as the Administrator determines;
    provided, that the Administrator shall not exercise its
    discretion under this Section 7(a)(2) with respect to an
    Award or portion thereof providing for “nonqualified
    deferred compensation” subject to Section 409A in a
    manner that would constitute an extension or acceleration of, or
    other change in, payment terms if such change would be
    inconsistent with the applicable requirements of
    Section 409A.

 

    (3) Acceleration of Certain
    Awards.  If the Covered Transaction (whether
    or not there is an acquiring or surviving entity) is one in
    which there is no assumption, substitution or cash-out, then
    subject to Section 7(a)(5) below the Administrator may
    provide that each Award will become fully exercisable and the
    delivery of any shares of Stock remaining deliverable under each
    outstanding Award of Stock Units (including Restricted Stock
    Units and Performance Awards to the extent consisting of Stock
    Units) will be accelerated and such shares will be delivered,
    prior to the Covered Transaction, in each case on a basis that
    gives the holder of the Award a reasonable opportunity, as
    determined by the Administrator, following exercise of the Award
    or the delivery of the shares, as the case may be, to
    participate as a stockholder in the Covered Transaction;
    provided, that to the extent acceleration pursuant to this
    Section 7(a)(3) of an Award subject to Section 409A
    would cause the Award to fail to satisfy the requirements of
    Section 409A, the

 

    Award shall not be accelerated and the Administrator in lieu
    thereof shall take such steps as are necessary to ensure that
    payment of the Award is made in a medium other than Stock and on
    terms that as nearly as possible, but taking into account
    adjustments required or permitted by this Section 7,
    replicate the prior terms of the Award.

 

    (4) Termination of Awards Upon Consummation of
    Covered Transaction.  Each Award will
    terminate upon consummation of the Covered Transaction, other
    than the following: (i) Awards assumed pursuant to
    Section 7(a)(1) above; (ii) Awards converted pursuant
    to the proviso in Section 7(a)(3) above into an ongoing
    right to receive payment other than Stock, and
    (iii) outstanding shares of Restricted Stock (which will be
    treated in the same manner as other shares of Stock, subject to
    Section 7(a)(5) below).

 

    (5) Additional Limitations.  Any
    share of Stock and any cash or other property delivered pursuant
    to Section 7(a)(2) or Section 7(a)(3) above with
    respect to an Award may, in the discretion of the Administrator,
    contain such restrictions, if any, as the Administrator deems
    appropriate to reflect any performance or other vesting
    conditions to which the Award was subject and that did not lapse
    (and were not satisfied) in connection with the Covered
    Transaction. For purposes of the immediately preceding sentence,
    a cash-out under Section 7(a)(2) above or the acceleration
    of exercisability of an Award under Section 7(a)(3) above
    shall not, in and of itself, be treated as the lapsing (or
    satisfaction) of a performance or other vesting condition. In
    the case of Restricted Stock that does not vest in connection
    with the Covered Transaction, the Administrator may require that
    any amounts delivered, exchanged or otherwise paid in respect of
    such Stock in connection with the Covered Transaction be placed
    in escrow or otherwise made subject to such restrictions as the
    Administrator deems appropriate to carry out the intent of the
    Plan.

 

    (b) Changes in and Distributions With Respect to
    Stock

 

    (1) Basic Adjustment
    Provisions.  In the event of a stock dividend,
    stock split or combination of shares (including a reverse stock
    split), recapitalization or other change in the Company’s
    capital structure, the Administrator shall make appropriate
    adjustments to the maximum number of shares specified in
    Section 4(a) that may be delivered under the Plan and to
    maximum share limits described in Section 4(d), and will
    also make appropriate adjustments to the number and kind of
    shares of stock or securities subject to Awards then outstanding
    or subsequently granted, any exercise prices relating to Awards
    and any other provision of Awards affected by such change.

 

    (2) Certain Other Adjustments.  The
    Administrator may also make adjustments of the type described in
    Section 7(b)(1) above to take into account distributions to
    stockholders other than those provided for in Section 7(a)
    and 7(b)(1), or any other event, if the Administrator determines
    that adjustments are appropriate to avoid distortion in the
    operation of the Plan and to preserve the value of Awards made
    hereunder, having due regard for the qualification of ISOs under
    Section 422 and the requirements of Section 409A and
    for the performance-based compensation rules of
    Section 162(m), where applicable.

 

    (3) Continuing Application of Plan
    Terms.  References in the Plan to shares of
    Stock will be construed to include any stock or securities
    resulting from an adjustment pursuant to this Section 7.

 

    8. LEGAL CONDITIONS ON DELIVERY OF STOCK

 

    The Company will use commercially reasonable efforts to satisfy
    applicable legal requirements for the issuance of shares of
    Stock pursuant to the exercise of any Award. The Company will
    not be obligated to deliver any shares of Stock pursuant to the
    Plan or to remove any restriction from shares of Stock
    previously delivered under the Plan until: (i) the Company
    is satisfied that all legal matters in connection with the
    issuance and delivery of such shares have been addressed and
    resolved; (ii) if the outstanding Stock is at the time of
    delivery listed on any stock exchange or national market system,
    the shares to be delivered have been listed or authorized to be
    listed on such exchange or system upon official notice of
    issuance; and (iii) all conditions of the Award have been
    satisfied or waived. If the sale of Stock has not been
    registered under the Securities Act of 1933, as amended,

 

    the Company may require, as a condition to exercise of the
    Award, such representations or agreements as counsel for the
    Company may consider appropriate to avoid violation of such Act.
    The Company may require that certificates evidencing Stock
    issued under the Plan bear an appropriate legend reflecting any
    restriction on transfer applicable to such Stock, and the
    Company may hold the certificates pending lapse of the
    applicable restrictions.

 

    9. AMENDMENT AND TERMINATION

 

    The Administrator may at any time or times amend the Plan or any
    outstanding Award for any purpose which may at the time be
    permitted by law, and may at any time terminate the Plan as to
    any future grants of Awards; provided, that except as
    otherwise expressly provided in the Plan the Administrator may
    not, without the Participant’s consent, alter the terms of
    a Award so as to affect materially and adversely the
    Participant’s rights under the Award, unless the
    Administrator expressly reserved the right to do so at the time
    the Award was granted. In furtherance of the foregoing, the
    Administrator may, without stockholder approval, amend any
    outstanding Award requiring exercise to provide an exercise
    price (or base value, in the case of an SAR) per share that is
    lower than the then-current exercise price (or base value) per
    share of such outstanding Award (but not lower than the exercise
    price or base value at which a new Award of the same type could
    be granted on the date of such amendment). The Board may also,
    without stockholder approval, cancel any outstanding award
    (whether or not granted under the Plan) and grant in
    substitution therefor new Awards under the Plan covering the
    same or a different number of shares of Common Stock, including,
    in the case of an Award requiring exercise, a new Award having
    an exercise price (or base value, in the case of an SAR) per
    share lower than the then-current exercise price (or base value,
    in the case of an SAR) per share of the cancelled award, subject
    to the requirements of Section 6(b)(2) above. Any
    amendments to the Plan shall be conditioned upon stockholder
    approval only to the extent, if any, such approval is required
    by law (including the Code and applicable stock exchange
    requirements), as determined by the Administrator.

 

    10. OTHER COMPENSATION ARRANGEMENTS

 

    The existence of the Plan or the grant of any Award will not in
    any way affect the Company’s right to award a person
    bonuses or other compensation in addition to Awards under the
    Plan.

 

    11. MISCELLANEOUS

 

    (a) Waiver of Jury Trial.  By
    accepting an Award under the Plan, each Participant waives any
    right to a trial by jury in any action, proceeding or
    counterclaim concerning any rights under the Plan and any Award,
    or under any amendment, waiver, consent, instrument, document or
    other agreement delivered or which in the future may be
    delivered in connection therewith, and agrees that any such
    action, proceedings or counterclaim shall be tried before a
    court and not before a jury. By accepting an Award under the
    Plan, each Participant certifies that no officer,
    representative, or attorney of the Company has represented,
    expressly or otherwise, that the Company would not, in the event
    of any action, proceeding or counterclaim, seek to enforce the
    foregoing waivers.

 

    (b) Limitation of
    Liability.  Notwithstanding anything to the
    contrary in the Plan, neither the Company, nor any Affiliate,
    nor the Administrator, nor any person acting on behalf of the
    Company, any Affiliate, or the Administrator, shall be liable to
    any Participant or to the estate or beneficiary of any
    Participant or to any other holder of an Award by reason of any
    acceleration of income, or any additional tax (including any
    interest and penalties), asserted by reason of the failure of an
    Award to satisfy the requirements of Section 422 or
    Section 409A or by reason of Section 4999 of the Code,
    or otherwise asserted with respect to the Award; provided, that
    nothing in this Section 11(b) shall limit the ability of
    the Administrator or the Company, in its discretion, to provide
    by separate express written agreement with a Participant for a
    gross-up
    payment or other payment in connection with any such
    acceleration of income or additional tax.

 

    (c) Rule 16b-3.  During
    any time when the Company has a class of equity security
    registered under Section 12 of the Exchange Act, it is the
    intent of the Company that Awards pursuant to the Plan and the
    exercise of any Awards granted hereunder that would otherwise be
    subject to Section 16(b) of the Exchange Act will qualify
    for exemption provided by
    Rule 16b-3
    under the

 

    Exchange Act. To the extent that any provision of the Plan or
    action by the Administrator does not comply with the
    requirements of
    Rule 16b-3,
    it shall be deemed inoperative with respect to such Awards to
    the extent permitted by law and deemed advisable by the
    Administrator, and shall not affect the validity of the Plan. In
    the event that
    Rule 16b-3
    is revised or replaced, the Administrator may exercise its
    discretion to modify this Plan in any respect necessary to
    satisfy the requirements of, or to take advantage of any
    features of, the revised exemption or its replacement.

 

    12. ESTABLISHMENT OF
    SUB-PLANS

 

    The Board may from time to time establish one or more
    sub-plans
    under the Plan for purposes of satisfying applicable blue sky,
    securities or tax laws of various jurisdictions. The Board shall
    establish such
    sub-plans by
    adopting supplements to the Plan setting forth (i) such
    limitations on the Administrator’s discretion under the
    Plan as the Board deems necessary or desirable and
    (ii) such additional terms and conditions not otherwise
    inconsistent with the Plan as the Board shall deem necessary or
    desirable. All supplements adopted by the Board shall be deemed
    to be part of the Plan, but each supplement shall apply only to
    Participants within the affected jurisdiction and the Company
    shall not be required to provide copies of any supplement to
    Participants in any jurisdiction that is not affected.

 

    13. GOVERNING LAW

 

    Except as otherwise provided by the express terms of an Award
    agreement or under a
    sub-plan
    described in Section 12, the provisions of the Plan and of
    Awards under the Plan and all claims or disputes arising out of
    our based upon the Plan or any Award under the Plan or relating
    to the subject matter hereof or thereof will be governed by and
    construed in accordance with the domestic substantive laws of
    the State of Delaware without giving effect to any choice or
    conflict of laws provision or rule that would cause the
    application of the domestic substantive laws of any other
    jurisdiction.

 

    EXHIBIT A

    

 

    Definition of
    Terms

 

    The following terms, when used in the Plan, will have the
    meanings and be subject to the provisions set forth below:

 

    “Administrator”:  The Compensation
    Committee, except that the Compensation Committee may delegate
    (i) to one or more of its members (or one or more other
    members of the Board) such of its duties, powers and
    responsibilities as it may determine; (ii) to one or more
    officers of the Company the power to grant rights or options to
    the extent permitted by Section 157(c) of the Delaware
    General Corporation Law; and (iii) to such Employees or
    other persons as it determines such ministerial tasks as it
    deems appropriate. In the event of any delegation described in
    the preceding sentence, the term “Administrator” shall
    include the person or persons so delegated to the extent of such
    delegation.

 

    “Affiliate”:  Any corporation or
    other entity that stands in a relationship to the Company that
    would result in the Company and such corporation or other entity
    being treated as one employer under Section 414(b) and
    Section 414(c) of the Code, except that in determining
    eligibility for the grant of an Award by reason of service for
    an Affiliate, Sections 414(b) and 414(c) of the Code shall
    be applied by substituting “at least 50%” for “at
    least 80%” under Section 1563(a)(1), (2) and
    (3) of the Code and Treas. Regs. § 1.414(c)-2;
    provided, that to the extent permitted under
    Section 409A, “at least 20%” shall be used in
    lieu of “at least 50%”; and further provided,
    that the lower ownership threshold described in this definition
    (50% or 20% as the case may be) shall apply only if the same
    definition of affiliation is used consistently with respect to
    all compensatory stock options or stock awards (whether under
    the Plan or another plan). The Company may at any time by
    amendment provide that different ownership thresholds
    (consistent with Section 409A) apply but any such change
    shall not be effective for twelve (12) months.

 

    “Award”:  Any or a combination of the
    following:

 

    (i) Stock Options.

 

    (ii) SARs.

 

    (iii) Restricted Stock

 

    (iv) Unrestricted Stock.

 

    (v) Stock Units, including Restricted Stock Units.

 

    (vi) Performance Awards.

 

    (vii) Cash Awards.

 

    (viii) Awards (other than Awards described in
    (i) through (vi) above) that are convertible into or
    otherwise based on Stock.

 

    “Board”:  The Board of Directors of
    the Company.

 

    “Cash Award”:  An Award denominated
    in cash.

 

    “Cause”:  In the case of any
    Participant, unless a defined term “cause” is set
    forth in a Participant’s Award or employment agreement in
    which case such definition shall govern, a termination by the
    Company or an affiliate of the Participant’s Employment or
    a termination by the Participant of the Participant’s
    Employment, in either case following the occurrence of any of
    the following events: (i) the Participant’s willful
    and continued failure to perform, or gross negligence or willful
    misconduct in the performance of, his or her material duties
    with respect to the Company or an Affiliate which, if curable,
    continues beyond ten business days after a written demand for
    substantial performance is delivered to the Participant by the
    Company; or (ii) Participant’s conviction of, or a
    plea of nolo contendere to, a crime constituting a felony under
    the laws of the United States or any state thereof;
    (iii) the Participant’s committing or engaging in any
    act of fraud, embezzlement, theft or other act of dishonesty
    against the Company or its subsidiaries that causes material
    injury, monetarily or otherwise, to the Company or an Affiliate;
    or (iv) the Participant’s breach of his or her
    noncompetition

 

    or nonsolicitation obligations in any agreement with the Company
    that causes material injury, monetarily or otherwise, to the
    Company or an Affiliate.

 

    “Code”:  The U.S. Internal
    Revenue Code of 1986 as from time to time amended and in effect,
    or any successor statute as from time to time in effect.

 

    “Company”:  LPL Investment Holdings
    Inc.

 

    “Compensation Committee”:  The
    Compensation and Human Resources Committee of the Board.

 

    “Competitive Activity”:  engaging,
    directly or indirectly, alone or as principal, agent, employee,
    employer, consultant, investor, partner or manager, or providing
    advisory or other services to, or owning any stock or any other
    ownership interest in, or making any financial investment in any
    business (or entity) that engages in any business in which the
    Company and its subsidiaries are engaged, or that provides any
    material products
    and/or
    services that the Company or its subsidiaries were actively
    developing or designing (provided that where such Competitive
    Activity occurs following termination of Employment, the
    Competitive Activity shall be determined at the date of
    termination); provided, that the foregoing shall not restrict
    the Participant from owning less than two percent (2%) of the
    outstanding securities of any class of securities listed on a
    national exchange or inter-dealer quotation system.

 

    “Covered Transaction”:  Any of
    (i) a consolidation, merger, or similar transaction or
    series of related transactions, including a sale or other
    disposition of stock, in which the Company is not the surviving
    corporation or which results in the acquisition of all or
    substantially all of the Company’s then outstanding common
    stock by a single person or entity or by a group of persons
    and/or
    entities acting in concert, in each case by other than an
    Affiliate (ii) a sale or transfer of all or substantially all
    the Company’s assets, or (iii) a dissolution or
    liquidation of the Company. Where a Covered Transaction involves
    a tender offer that is reasonably expected to be followed by a
    merger described in clause (i) (as determined by the
    Administrator), the Covered Transaction will be deemed to have
    occurred upon consummation of the tender offer.

 

    “Effective Date”:  The date on which
    the initial public offering of LPL becomes effective within the
    meaning of the Securities Act of 1933.

 

    “Employee”:  Any person who is
    employed by the Company or an Affiliate.

 

    “Employment”:  A Participant’s
    employment or other service relationship with the Company and
    its Affiliates. Employment will be deemed to continue, unless
    the Administrator expressly provides otherwise, so long as the
    Participant is employed by, or otherwise is providing services
    in a capacity described in Section 5 to the Company or its
    Affiliates. If a Participant’s employment or other service
    relationship is with an Affiliate and that entity ceases to be
    an Affiliate, the Participant’s Employment will be deemed
    to have terminated when the entity ceases to be an Affiliate
    unless the Participant transfers Employment to the Company or
    its remaining Affiliates. Notwithstanding the foregoing, in
    construing the provisions of any Award relating to the payment
    of “nonqualified deferred compensation” (subject to
    Section 409A) upon a termination or cessation of
    Employment, references to termination or cessation of
    employment, separation from service, retirement or similar or
    correlative terms shall be construed to require a
    “separation from service” (as that term is defined in
    Section 1.409A-1(h)
    of the Treasury Regulations) from the Company and from all other
    corporations and trades or businesses, if any, that would be
    treated as a single “service recipient” with the
    Company under
    Section 1.409A-1(h)(3)
    of the Treasury Regulations. The Company may, but need not,
    elect in writing, subject to the applicable limitations under
    Section 409A, any of the special elective rules prescribed
    in
    Section 1.409A-1(h)
    of the Treasury Regulations for purposes of determining whether
    a “separation from service” has occurred. Any such
    written election shall be deemed a part of the Plan.

 

    “Exchange Act”:  The Securities
    Exchange Act of 1934, as from time to time amended and in
    effect, or any successor statute as from time to time in effect.

 

    “Existing Plans”:  LPL Investment
    Holdings Inc. 2005 Stock Option Plan for Non-Qualified Stock
    Options; LPL Investment Holdings Inc. 2005 Stock Option Plan for
    Incentive Stock Options; LPL

 

    Investment Holdings Inc. 2008 Stock Option Plan; and LPL
    Investment Holdings Inc. Advisor Incentive Plan.

 

    “ISO”:  A Stock Option intended to be
    an “incentive stock option” within the meaning of
    Section 422. Each option granted pursuant to the Plan will
    be treated as providing by its terms that it is to be a
    non-incentive stock option unless, as of the date of grant, it
    is expressly designated as an ISO.

 

    “Participant”:  A person who is
    granted an Award under the Plan.

 

    “Performance Award”:  An Award
    subject to Performance Criteria. The Compensation Committee in
    its discretion may grant Performance Awards that are intended to
    qualify for the performance-based compensation exception under
    Section 162(m) and Performance Awards that are not intended
    so to qualify.

 

    “Performance Criteria”:  Specified
    criteria, other than the mere continuation of Employment or the
    mere passage of time, the satisfaction of which is a condition
    for the grant, exercisability, vesting or full enjoyment of an
    Award. For purposes of Awards that are intended to qualify for
    the performance-based compensation exception under
    Section 162(m), a Performance Criterion will mean an
    objectively determinable measure of performance relating to any
    or any combination of the following (measured either absolutely
    or by reference to an index or indices and determined either on
    a consolidated basis or, as the context permits, on a
    divisional, subsidiary, line of business, project or
    geographical basis or in combinations thereof): sales; revenues;
    assets; expenses; earnings before or after deduction for all or
    any portion of interest, taxes, depreciation, or amortization,
    whether or not on a continuing operations or an aggregate or per
    share basis; return on equity, investment, capital or assets;
    one or more operating ratios; borrowing levels, leverage ratios
    or credit rating; market share; capital expenditures; cash flow;
    stock price; stockholder return; sales of particular products or
    services; customer acquisition or retention; acquisitions and
    divestitures (in whole or in part); joint ventures and strategic
    alliances; spin-offs,
    split-ups
    and the like; reorganizations; or recapitalizations,
    restructurings, financings (issuance of debt or equity) or
    refinancings. A Performance Criterion and any targets with
    respect thereto determined by the Administrator need not be
    based upon an increase, a positive or improved result or
    avoidance of loss. To the extent consistent with the
    requirements for satisfying the performance-based compensation
    exception under Section 162(m), the Administrator may
    provide in the case of any Award intended to qualify for such
    exception that one or more of the Performance Criteria
    applicable to such Award will be adjusted in an objectively
    determinable manner to reflect events (for example, but without
    limitation, acquisitions or dispositions) occurring during the
    performance period that affect the applicable Performance
    Criterion or Criteria.

 

    “Plan”:  The LPL Investment Holdings
    Inc. 2010 Omnibus Equity Incentive Plan as from time to time
    amended and in effect.

 

    “Restricted Stock”:  Stock subject to
    restrictions requiring that it be redelivered or offered for
    sale to the Company if specified conditions are not satisfied.

 

    “Restricted Stock Unit”:  A Stock
    Unit that is, or as to which the delivery of Stock or cash in
    lieu of Stock is, subject to the satisfaction of specified
    performance or other vesting conditions.

 

    “Retirement”:  Termination of
    Employment other than for Cause following attainment of
    age 65 and completion of five (5) years of continuous
    service with the Company.

 

    “SAR”:  A right entitling the holder
    upon exercise to receive an amount (payable in cash or in shares
    of Stock of equivalent value) equal to the excess of the fair
    market value of the shares of Stock subject to the right over
    the base value from which appreciation under the SAR is to be
    measured.

 

    “Section 162(m)”:  Section 162(m)
    of the Code.

 

    “Section 409A”:  Section 409A
    of the Code.

 

    “Section 422”:  Section 422
    of the Code.

 

    “Stock”:  Common Stock of the
    Company, par value $0.001 per share.

 

    “Stock Option”:  An option entitling
    the holder to acquire shares of Stock upon payment of the
    exercise price.

 

    “Stock Unit”:  An unfunded and
    unsecured promise, denominated in shares of Stock, to deliver
    Stock or cash measured by the value of Stock in the future.

 

    “Unrestricted Stock”:  Stock not
    subject to any restrictions under the terms of the Award.exv10w1

Exhibit 10.1

EXECUTION COPY

FORM OF REGISTRATION RIGHTS AGREEMENT

          This Registration Rights Agreement (this “Agreement”) is made as of April 13, 2010, by
Jefferies Group, Inc., a Delaware corporation (the “Company”), and Leucadia National
Corporation, a New York corporation (“Leucadia” or the “Holder”).

     NOW, THEREFORE, the Company hereby agrees, in favor of Leucadia, as follows:

     1. Definitions. In addition to those terms defined elsewhere in this Agreement, the
following terms shall have the following meanings wherever used in this Agreement:

          “Act” shall mean the Securities Act of 1933, as amended, and any successor statute
from time to time.

          “Affiliate” shall mean, with respect to any person, any other person controlling,
controlled by or under common control with the first person.

          “Board” shall mean the Board of Directors of the Company.

          “Common
Stock” shall mean the authorized common shares, par value $0.0001 per share, of the Company.

          “Company” shall have the meaning set forth in the preamble hereto.

          “Costs and Expenses” shall mean reasonable out-of-pocket costs and expenses relating
to any subject Registration Statement and offering of the Registrable Securities pursuant thereto,
including but not limited to registration, filing and qualification fees, blue sky expenses, costs
and expenses of listing any Registrable Securities on any exchange or other trading media, the fees
and expenses of any Person (including special experts) retained by the Company, printing expenses,
fees and expenses of counsel and accountants to the Company (including expenses for any “comfort”
letters) and the underwriters, and reasonable fees and disbursements of a single counsel to the
Holder, and reasonable out-of-pocket expenses for a road show; provided, however,
that underwriting discounts, fees and commissions attributable solely to the securities registered
for the benefit of the Holder, and fees and disbursements of any additional counsel to the Holder,
shall be borne by the Holder. The Company shall bear all of its internal expenses (including all
salaries and expenses of its officers and employees performing legal or accounting duties), and the
expense of any annual audit.

          “Demand Registration” shall mean any Registration requested by the Holder pursuant to
Section 4 hereof involving an underwritten offering of Registrable
Securities by the Holder (other than a piggy back registration pursuant to Section 3 hereof),
including a request for the Company’s assistance with an underwritten offering

 

 

in connection with a sale of Registrable Securities pursuant to a Short-Form Registration (as defined herein).

          “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and any
successor statute from time to time.

          “Holder” shall mean Leucadia, its subsidiaries and any transferee of Registrable
Securities.

          “Holders’ Representative” shall mean Leucadia, or any other Holder designated by
Leucadia as the Holders’ Representative.

          “Investment Agreement” shall mean the Investment Agreement, dated as of April 20,
2008, by and between the Company and Leucadia, as the same may be amended, modified, supplemented
and/or restated from time to time in accordance with the provisions thereof.

          “Person” shall mean any individual, corporation, partnership, limited partnership,
limited liability company, trust, or other entity of any kind, and any government or department or
agency thereof.

          “Prospectus” means the prospectus included in any Registration Statement (including a
prospectus that discloses information previously omitted from a prospectus filed as part of an
effective Registration Statement in reliance upon Rule 430A or Rule 430B promulgated under the
Securities Act), as amended or supplemented by any prospectus supplement with respect to the terms
of the offering of any portion of the Registrable Securities covered by such Registration
Statement, any issuer free writing prospectus related thereto, and all other amendments and
supplements to such prospectus, including post-effective amendments, and all material incorporated
by reference or deemed to be incorporated by reference in such prospectus.

          “Registrable Securities” shall mean (a) all shares of Common Stock owned by Leucadia
and its subsidiaries, as of the date of this Agreement, and all shares of Common Stock and other
securities of the Company acquired by Leucadia and its subsidiaries, on, and from and after, the
date of this Agreement, and (b) any securities issued directly or indirectly with respect to such
shares described in clause (a) because of stock splits, stock dividends, reclassifications,
recapitalizations, mergers, share exchanges, reorganizations, consolidations, or similar events.
As to any particular Registrable Securities, such securities shall cease to be Registrable
Securities when (i) a Registration Statement with respect to the sale of such securities shall have
become effective under the Act and such securities shall have been disposed of in accordance with
such Registration Statement or (ii) such securities shall have been sold to the public pursuant to
Rule 144 (or any successor provision) under the Act.

          “Registration” shall mean any registration of Common Stock pursuant to a registration
statement filed by the Company with the SEC in respect of any class of

2

 

Common Stock, other than a registration statement in respect of employee stock award or other employee benefit
plans or in respect of any merger, consolidation, acquisition, exchange or like transaction,
whether on Form S-4, Form S-8 or any equivalent form for registration then in effect.

          “Registration Period” shall mean, with respect to a Registration Statement, the period
of time from the effective date of such Registration Statement until the earlier of (a) the date on
which all of the Registrable Securities covered by such Registration Statement shall have been sold
to the public or (b) if neither Leucadia nor any subsidiary thereof holds the Registrable
Securities, the date on which the Registrable Securities covered by such Registration Statement (in
the opinion of counsel to the Company and reasonably acceptable to legal counsel to the Holder) may
be immediately sold without restriction (including, without limitation, as to volume or manner of
sale restrictions) by the Holder, without registration under the Act.

          “Registration Statement” shall mean any registration statement of the Company under
the Act which permits the public offering of any of the Registrable Securities pursuant to the
provisions of this Agreement, including the Prospectus, amendments and supplements to such
registration statement, including post-effective amendments, all exhibits and all material
incorporated by reference or deemed to be incorporated by reference in such registration statement.

          “SEC” shall mean the U.S. Securities and Exchange Commission, or any successor agency
or agencies performing the functions thereof.

     2. Shelf Registration.

          (a) The Company represents that it currently has an effective registration statement on Form
S-3 (the “Current Registration Statement”) that is an automatic shelf registration statement for a
“well-known seasoned issuer” as defined in Rule 405 under the Securities Act (“WKSI”). The Company
will use its best efforts to continue to qualify for registration on Form S-3 (including, if
available, an automatic shelf registration statement for a WKSI or any comparable or successor form
or forms or any similar short-form registration (together with the Current Registration Statement,
a“Short-Form Registration”). The Company will cause a Short-Form Registration to be filed
by the Company as promptly as practicable after a request by the Holder given in accordance with
the provisions of the Investment Agreement. Both the Current Registration Statement and any other
Short-Form Registration shall constitute a “shelf” registration statement providing for the
registration of, and the sale on a continuous or delayed basis of, the Registrable Securities,
pursuant to Rule 415 under the Securities Act, to permit the distribution of the Registrable
Securities in accordance with the methods of distribution elected by the Holders, including by
means of an underwritten offering, in an amount sufficient to cover the resale of all Registrable
Securities. The Company shall use its best efforts to keep any Short-Form Registration, including
the Current Registration Statement effective with the SEC at all times and any Short-Form
Registration shall be re-filed upon its expiration, and the Company shall cooperate in any

3

 

shelf take-down by amending or supplementing the Prospectus related to such Short-Form Registration as
may be reasonably requested by the Holders’ Representative or as otherwise required, until the
Holders no longer hold Registrable Securities.

          (b) The Company shall use all reasonable best efforts to cause any Registration Statement
required by this Section 2 to be declared effective under the Act as promptly as possible after the
filing thereof.

          (c) The Company shall use all reasonable best efforts to keep each Registration Statement
under this Section 2 effective at all times during the applicable Registration Period.

          (d) If any offering pursuant to a Registration Statement pursuant to this Section 2 involves
an underwritten offering, the Holder shall have the right to select its legal counsel and an
investment banking firm or firms and manager or managers to administer to the offering, which
investment banking firm or firms or manager or managers shall be reasonably satisfactory to the
Company.

     3. Piggyback Registration.

          (a) If the Company at any time proposes to effect a Registration of securities of the same
class as the Registrable Securities under the Securities Act (other than pursuant to section 2(a)),
whether or not for sale for its own account, and the registration form to be used may be used for
registration of the Registrable Securities, it will each such time give prompt written notice to
the Holder of its intention to do so and of the Holder’s rights under this section 3. Upon the
written request of any Holder made within 15 days after the receipt of any such notice (which
request shall specify the Registrable Securities intended to be disposed of by the Holder and the
intended method of disposition thereof), the Company will use its best efforts to effect the
registration under the Act of all Registrable Securities which the Company has been so requested to
register by the Holder, to the extent requisite to permit the disposition (in accordance with the
intended methods thereof as aforesaid) of the Registrable Securities to be registered, by inclusion
of such Registrable Securities in the registration statement which covers the securities which the
Company proposes to register, provided that if, at any time after giving written notice of
its intention to register any securities and prior to the effective date of the registration
statement filed in connection with such registration, the Company shall determine for any reason
either not to register or to delay registration of such securities, the Company may, at its
election, give written notice of such determination to the Holder and, thereupon, (i) in the case
of a determination not to register, shall be relieved of its obligation to register any Registrable
Securities in connection with such registration (but not from its obligation to pay the
Registration Expenses in connection therewith), without prejudice, however, to the rights of the
Holder to request that such registration be effected as a registration under section 2(a), and (ii)
in the case of a determination to delay registering, shall be permitted to delay
registering any Registrable Securities, for the same period as the delay in registering such
other securities. No registration effected under this section 3(a) shall relieve the

4

 

Company of its obligation to effect any registration upon request under section 5. The Company will pay all
Costs and Expenses in connection with each registration of Registrable Securities requested
pursuant to this section 3.

          (b) If (i) a registration pursuant to this Section 3 involves an underwritten offering of the
securities so being registered, whether or not for sale for the account of the Company, to be
distributed (on a firm commitment basis) by or through one or more underwriters of recognized
standing under underwriting terms appropriate for such a transaction, and (ii) the managing
underwriter of such underwritten offering shall inform the Company and the Holder by letter of its
belief that the distribution of all or a specified number of such Registrable Securities
concurrently with the securities being distributed by such underwriters would interfere with the
successful marketing of the securities being distributed by such underwriters (such writing to
state the basis of such belief and the approximate number of such Registrable Securities which may
be distributed without such effect), then the Company may, upon written notice to the Holder,
reduce pro rata (if and to the extent stated by such managing underwriter to be necessary to
eliminate such effect) the number of such Registrable Securities the registration of which shall
have been requested by the Holder and any other Holder of Registrable Securities so that the
resultant aggregate number of such Registrable Securities so included in such registration shall be
equal to the number of shares stated in such managing underwriter’s letter.

     4. Registration Procedures. (a) In the case of each Registration effected by the
Company in which Registrable Securities are to be sold for the account of the Holder, the Company,
at its sole cost and expense (exclusive of items excluded in the proviso to the definition of
“Costs and Expenses” above), will as expeditiously as possible use all reasonable best efforts to:

               (i) prepare and file with the SEC such amendments and supplements to such Registration
Statement and the prospectus included therein as may be necessary to effect and maintain the
effectiveness of such Registration Statement throughout the applicable Registration Period, as may
be required by the applicable rules and regulations of the SEC and the instructions applicable to
the form of such Registration Statement, and furnish to the Holder of the Registrable Securities
covered thereby copies of any such supplement or amendment prior to its being used and/or filed
with the SEC; and comply with the provisions of the Act with respect to the disposition of all the
Registrable Securities to be included in such Registration Statement;

               (ii) provide (A) the Holder of the Registrable Securities to be included in such Registration
Statement, (B) the underwriters (which term, for purposes of this Agreement, shall include a person
deemed to be an underwriter within the meaning of Section 2(11) of the Act), if any, thereof, (C)
the sales or placement agent, if any, therefor, (D) counsel for such underwriters or agent, and (E)
counsel for the Holder of such Registrable Securities, the opportunity to participate in the
preparation of such Registration Statement, each prospectus included therein or filed with the SEC, and each
amendment or supplement thereto and provide to such persons copies of any such

5

 

prospectus, amendment or supplement thereto (including documents that would be incorporated or deemed
incorporated by reference), subject to the limitations on reimbursement of counsel fees provided in
the definition of “Costs and Expenses”;

          The Company shall not file any such Registration Statement or Prospectus or any amendments or
supplements thereto relating to the Registrable Securities (including such documents that, upon
filing, would be incorporated or deemed to be incorporated by reference therein) with respect to
any Registration of the Registrable Securities pursuant to Section 4 hereof to which the managing
underwriter(s), if any, (or, with respect to any Registration other than a Piggyback Registration,
the Holders’ Representative, its counsel), shall reasonably object, in writing, on a timely basis,
unless, in the opinion of the Company, such filing is necessary to comply with applicable law; nor
shall the Company request acceleration of such Registration Statement relating to the Registrable
Securities (other than a Piggyback Registration) without prior notice to counsel to the Holder;

               (iii) for a reasonable period prior to the filing of such Registration Statement, and
throughout the period specified above, make available for inspection by the Persons referred to in
Section 4(ii) above such financial and other information and books and records of the Company and
its subsidiaries, and cause the officers, directors, employees, counsel and independent certified
public accountants of the Company and its subsidiaries to respond to such inquiries, as shall be
reasonably necessary, in the judgment of the respective counsel referred to in such Section 4(ii),
to conduct a reasonable investigation within the meaning of the Act; provided,
however, that each such party shall be required to maintain in confidence and not disclose
to any other person or entity any information or records reasonably designated by the Company in
writing as being confidential; and further provided, that the Company need
not make such information available, nor need it cause any officer, director or employee to respond
to such inquiry, unless the Holder of Registrable Shares to be included in a Registration Statement
hereunder, upon the Company’s request, executes and delivers to the Company a specific undertaking
to substantially the same effect contained in the preceding proviso;

               (iv) prepare and file with the SEC such amendments and post-effective amendments to each
Registration Statement as may be necessary to keep such Registration Statement continuously
effective during the period provided herein and comply in all material respects with the provisions
of the Act with respect to the disposition of all securities covered by such Registration
Statement, and cause the related Prospectus to be supplemented by any Prospectus supplement or
issuer free writing prospectus as may be necessary to comply with the provisions of the Act with
respect to the disposition of the securities covered by such Registration Statement, and as so
supplemented to be filed pursuant to Rule 424 (or any similar provisions then in force) under the
Act.

               (v) promptly notify in writing the Holder of Registrable Securities to be included in a
Registration Statement hereunder, the sales or placement agent, if any, therefor and the managing
underwriter of the securities being sold, (A)

6

 

when such Registration Statement or the prospectus
included therein or any prospectus amendment or supplement or post-effective amendment has been
filed, and, with respect to such registration statement or any post-effective amendment, when the
same has become effective, (B) of any comments by the SEC and by the blue sky or securities
commission or regulator of any state with respect thereto or any request by the SEC for amendments
or supplements to such Registration Statement or the prospectus or for additional information, (C)
of the issuance by the SEC of any stop order suspending the effectiveness of such registration
statement or the initiation of any proceedings for that purpose, (D) of the receipt by the Company
of any notification with respect to the suspension of the qualification of any Shares for sale in
any jurisdiction or the initiation or threatening of any proceeding for such purpose, or (E) if it
shall be the case, at any time that such Registration Statement, prospectus, prospectus supplement,
or any document incorporated by reference in any of the foregoing contains an untrue statement of a
material fact or omits to state any material fact required to be stated therein or necessary to
make the statements therein not misleading in light of the circumstances then existing;

          (vi) obtain the withdrawal of any order suspending the effectiveness of such Registration
Statement or any post-effective amendment thereto or the lifting of any suspension of the
qualification (or exemption from qualification) of any of the Registrable Securities for sale in
any jurisdiction at the earliest practicable date;

          (vii) if requested by any managing underwriter or underwriter, any placement or sales agent or
any Holder of Registrable Securities to be included in a Registration Statement, promptly
incorporate in a prospectus, prospectus supplement or post-effective amendment such information as
is required by the applicable rules and regulations of the SEC and as such managing underwriter or
underwriters, such agent or such Holder may reasonably specify should be included therein relating
to the terms of the sale of the Registrable Securities included thereunder, including, without
limitation, information with respect to the number of Registrable Securities being sold by such
Holder or agent or to such underwriters, the name and description of such Holder, the intended
method of distribution, the offering price of such Registrable Securities and any discount,
commission or other compensation payable in respect thereof, the purchase price being paid therefor
by such underwriters and with respect to any other terms of the offering of the Registrable
Securities to be sold in such offering; and make all required filings of such prospectus,
prospectus supplement or post-effective amendment promptly after notification of the matters to be
incorporated in such prospectus, prospectus supplement or post-effective amendment;

          (viii) furnish to the Holder of Registrable Securities to be included in such Registration
Statement hereunder, each placement or sales agent, if any, therefor, each underwriter, if any,
thereof without charge an executed copy of such Registration Statement, each such amendment and
supplement thereto (in each case
excluding all exhibits and documents incorporated by reference) and such number of copies of
the Registration Statement (excluding exhibits thereto and documents incorporated by reference
therein unless specifically so requested by the Holder, agent or

7

 

underwriter, as the case may be) and the prospectus included in such Registration Statement (including each preliminary prospectus
and any summary prospectus), in conformity with the requirements of the Act, as the Holder, agent,
if any, and underwriter, if any, may reasonably request in order to facilitate the disposition of
the Registrable Securities owned by the Holder, sold by such agent or underwritten by such
underwriter and to permit the Holder, agent and underwriter to satisfy the prospectus delivery
requirements of the Act; and the Company hereby consents to the use of such prospectus and any
amendment or supplement thereto by the Holder and by any such agent and underwriter, in each case
in the form most recently provided to such person by the Company, in connection with the offering
and sale of the Shares covered by the prospectus (including such preliminary and summary
prospectus) or any supplement or amendment thereto;

               (ix) timely (A) register or qualify (to the extent legally required) the Shares to be included
in such registration statement under such other securities laws or blue sky laws of such
jurisdictions to be designated by the Holder participating in such registration and each placement
or sales agent, if any, therefor and underwriter, sales or placement agent if any, thereof, as the
Holder and each underwriter, if any, of the securities being sold shall reasonably request, (B)
keep such registrations or qualifications in effect and comply with such laws so as to permit the
continuance of offers, sales and dealings therein in such jurisdictions during the applicable
Registration Period, and (C) take any and all such actions during the Registration Period as may be
reasonably necessary or advisable to enable the Holder, agent, if any, and underwriter sales or
placement agent to consummate the disposition in such jurisdictions of such Shares;
provided, however, that the Company shall not be required for any such purpose to
(X) qualify generally to do business as a foreign corporation or a broker-dealer in any
jurisdiction wherein it would not otherwise be required to qualify but for the requirements of this
Section 4(a)(ix), (Y) subject itself to taxation in any such jurisdiction, or (Z) consent to
general service of process in any such jurisdiction;

               (x) cooperate with the Holder and the managing underwriter(s) to facilitate the timely
preparation and delivery of certificates representing Registrable Shares to be sold, which
certificates shall be printed, lithographed or engraved, or produced by any combination of such
methods, in customary form to permit the transfer thereof through the Company’s transfer agent; and
enable such Registrable Shares to be in such denominations and registered in such names as the
managing underwriter(s) may request at least two (2) business days prior to any sale of the
Registrable Securities;

               (xi) provide a CUSIP number for all Registrable Securities, prior to the effective date of the
Registration Statement;

               (xii) with respect to any Demand Registration permitted hereunder, enter into such agreements
(including an underwriting agreement in form,
scope and substance as is customary in underwritten offerings) and take all such other actions
reasonably requested by the Holders of a majority of the Registrable Securities being sold in
connection therewith or by the managing underwriter(s), if any, to expedite

8

 

or facilitate the disposition of such Registrable Securities, and in connection therewith, whether or not an
underwriting agreement is entered into and whether or not the registration is an underwritten
registration, (A) make such representations and warranties to the selling Holders and the managing
underwriter(s), if any, with respect to the business of the Company and its subsidiaries, and the
Registration Statement, Prospectus and documents, if any, incorporated or deemed to be incorporated
by reference therein, in each case, in form, substance and scope as are customarily made by issuers
in underwritten offerings, and, if true, confirm the same if and when requested, (B) use its
reasonable best efforts to furnish to the selling Holders of such Registrable Securities opinions
of counsel to the Company and updates thereof (which counsel and opinions (in form, scope and
substance) shall be reasonably satisfactory to the managing underwriter(s), if any, and counsel(s)
to the selling Holders of the Registrable Securities), addressed to each selling Holder of
Registrable Securities and each of the managing underwriter(s), if any, covering the matters
customarily covered in opinions requested in underwritten offerings and such other matters as may
be reasonably requested by such counsel and managing underwriter(s), (C) use its reasonable best
efforts to obtain “comfort” letters and updates thereof from the independent certified public
accountants of the Company (and, if necessary, any other independent certified public accountants
of any subsidiary of the Company or of any business acquired by the Company for which financial
statements and financial data are, or are required to be, included in the Registration Statement)
who have certified the financial statements included in such Registration Statement, addressed to
each selling Holder of Registrable Securities (unless such accountants shall decline to so address
such letters because of applicable standards of the accounting profession) and each of the managing
underwriter(s), if any, such letters to be in customary form and covering matters of the type
customarily covered in “comfort” letters in connection with underwritten offerings, (D) if an
underwriting agreement is entered into, the same shall contain indemnification provisions and
procedures substantially to the effect set forth in Sections 7, 8 and 9 hereof with respect to all
parties to be indemnified pursuant to said Sections except as otherwise agreed by the Holders of a
majority of the Registrable Securities being sold in connection therewith and the managing
underwriter(s), if any, and (E) deliver such documents and certificates as may be reasonably
requested by the Holders of a majority of the Registrable Securities being sold in connection
therewith, their counsel and the managing underwriter(s), if any, to evidence the continued
validity of the representations and warranties made pursuant to clause (A) above and to evidence
compliance with any customary conditions contained in the underwriting agreement or other agreement
entered into by the Company. The above shall be done at each closing under such underwriting or
similar agreement, or as and to the extent required thereunder;

               (xiii) notify in writing the Holder of any proposal by the Company to amend or waive any
provision of this Agreement and of any amendment or
waiver effected pursuant thereto, each of which notices shall contain the text of the
amendment or waiver proposed or effected, as the case may be;

9

 

               (xiv) engage to act on behalf of the Company, with respect to the Registrable Securities to be
so registered, a registrar and transfer agent having such duties and responsibilities (including,
without limitation, registration of transfers and maintenance of stock registers) as are
customarily discharged by such an agent, and to enter into such agreements and to offer such
indemnities as are customary in respect thereof;

               (xv) cause all Registrable Securities included in the Registration Statement to be listed on
each securities exchange on which similar securities issued by the Company are then listed or, if
not so listed, to be listed on a national securities exchange;

               (xvi) use its reasonable best efforts to cause the Registrable Securities covered by the
Registration Statement to be registered with or approved by such other governmental entities within
the United States, except as may be required solely as a consequence of the nature of such selling
Holder’s business, in which case the Company will cooperate in all reasonable respects with the
filing of such Registration Statement and the granting of such approvals, as may be necessary to
enable the seller or sellers thereof or the managing underwriter(s), if any, to consummate the
disposition of such Registrable Securities;

               (xvii) upon the occurrence of any event contemplated by Section 4 (a)(v) (B), (C), (D), or (E)
above, prepare a supplement or post-effective amendment to the Registration Statement or a
supplement to the related Prospectus or any document incorporated or deemed to be incorporated
therein by reference or an issuer free writing prospectus related thereto, or file any other
required document so that, as thereafter delivered to the selling Holders, such Prospectus will not
contain an untrue statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading;

               (xviii) with respect to any Demand Registration permitted hereunder, cause its officers to use
their reasonable best efforts to support the marketing of the Registrable Securities covered by the
Registration Statement (including, without limitation, by participation in “road shows”) taking
into account the Company’s business needs; and

               (xix) otherwise comply with all applicable rules and regulations of the SEC, and make
available to the Holder, as soon as practicable, but in any event not later than 18 months after
the effective date of such Registration Statement, an earnings statement covering a period of at
least twelve months which shall satisfy the provisions of Section 11(a) of the Act (including, at
the option of the Company, pursuant to Rule 158 thereunder).

          (b) No securities shall be included under any Registration Statement filed pursuant to Section
4 relating to the Registrable Securities without the written

10

 

consent of the Holders’
Representative, except Registrable Securities requested by the Holders to be included therein
pursuant to Section 4 hereof. Subject to the preceding sentence, if any of the Registrable
Securities registered pursuant to a Demand Registration are to be sold in a firm commitment
underwritten offering, and the managing underwriter(s) of such underwritten offering advise the
Holders in writing that it is their good faith opinion that the total number or dollar amount of
Registrable Securities proposed to be sold in such offering exceeds the total number or dollar
amount of such securities that can be sold without having an adverse effect on the amount, price,
timing or distribution of the Registrable Securities to be so included, then there shall be
included in such offering the number or dollar amount of Registrable Securities that in the opinion
of such managing underwriter(s) can be sold without so adversely affecting such offering, and such
number of Registrable Securities shall be allocated for inclusion pro rata among the participating
Holders.

          (c) If the Registrable Securities are registered for resale under an effective Registration
Statement, the Holder shall cease any distribution of such Shares under such Registration Statement
not more than once in any six (6) month period, for up to sixty (60) days, and not more than ninety
(90) days during any twelve (12) month period, upon the request of the Company signed by the Chief
Executive Officer and the Chief Financial Officer of the Company certifying that, in the good faith
judgment of the Board of Directors of the Company, such registration, offering or use would
reasonably be expected to materially adversely affect or materially interfere with any bona fide
and imminent material financing (including securities offerings) of the Company or any imminent
material transaction under consideration by the Company or would require the disclosure of
information that has not been, and is not otherwise required to be, disclosed to the public, the
premature disclosure of which would materially adversely affect the Company. The Company shall
promptly notify the Holder in writing at such time as (i) such transactions or negotiations have
been otherwise publicly disclosed or terminated, or (ii) such non-public information has been
publicly disclosed or counsel to the Company has determined that such disclosure is not required
due to subsequent events.

          In no event shall any Holder be prevented from selling Registrable Securities under an
effective Registration Statement more than once in any six (6) month period, for up to sixty (60)
days, and for not more than ninety (90) days during any twelve (12) month period.

     5. Limitations on Demand Registrations. The Holders will be entitled to initiate up
to an aggregate of three (3) Demand Registrations, and the Company will not be obligated to effect
more than one Demand Registration in any six month period provided each such request provides for
the registration of at least 20% of the Registrable Securities then held by all of the Holders or
is reasonably expected to result in aggregate gross proceeds of at least $25 million. Upon filing
a Registration Statement, the Company will use its reasonable best efforts to keep such
Registration Statement effective with the SEC at all times during the applicable Registration
Period. No request for a Demand Registration will count for the purposes of the limitations in this Section 5 if
(a) the Holders Representative determines in good faith to withdraw the proposed

11

 

registration prior to the effectiveness of the Registration Statement relating to such request (or to terminate the
underwritten offering prior to execution of the underwriting agreement or purchase agreement for
any Demand Registration to be effected under any Short-Form Registration) due to marketing
conditions or regulatory reasons relating to the Company (provided that this clause (a) shall cease
to apply to any Holder that has previously withdrawn a proposed registration, or terminated an
underwritten offering prior to execution of an underwriting agreement or purchase agreement for any
Demand Registration to be effected under a Short-Form Registration), (b) the Registration Statement
relating to such request is not declared effective within 60 days of the date such Registration
Statement is first filed with the SEC (other than solely by reason of the Holder having refused to
proceed or provide any required information for inclusion therein) and the Holder withdraws the
Registration Request prior to such Registration Statement being declared effective, (c) prior to
the sale of at least 90% of the Registrable Securities included in the applicable registration
relating to such request, such registration is adversely affected by any stop order, injunction or
other order or requirement of the SEC or other governmental agency or court for any reason and the
Company fails to have such stop order, injunction or other order or requirement removed, withdrawn
or resolved to the Holder’s reasonable satisfaction within thirty (30) days of the date of such
order, or (d) the conditions to closing specified in the underwriting agreement or purchase
agreement entered into in connection with the registration relating to such request are not
satisfied (other than as a result of a material default or breach thereunder by the Holder).
Notwithstanding the foregoing, the Company will pay all Registration Expenses in connection with
any request for registration pursuant to Section 5 regardless of whether or not such request counts
toward the limitation set forth above. No Piggyback Registration shall count for purposes of this
limitation.

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     6. Certain Additional Agreements

     (a) The Company may require each selling Holder to furnish to the Company in writing such
information required in connection with such registration regarding such selling Holder and the
distribution of such Registrable Securities as the Company may, from time to time, reasonably
request in writing and the Company may exclude from such registration the Registrable Securities of
any selling Holder who fails to furnish such information within a reasonable time after receiving
such request.

     (b) Each selling Holder agrees that upon receipt of any notice from the Company of the
happening of any event of the kind described in Section 4 (a)(v)(E) hereof, such Holder will
forthwith discontinue disposition of such Registrable Securities covered by such Registration
Statement or Prospectus until such Holder’s receipt of the copies of the supplemented or amended
Prospectus contemplated by Section 4 (a)(xvii) hereof, or until it is advised in writing by the
Company that the use of the applicable Prospectus may be resumed, and has received copies of any
additional or supplemental filings that are incorporated or deemed to be incorporated by reference
in such
Prospectus; provided, however, that (i) in no event shall such discontinuance exceed the time
period set forth in Section 4 (c) hereof.

     (c) The Company shall not enter into any agreement with respect to any equity securities that
grants or provides holders of such securities with registration rights that have terms that are
materially more favorable, taken as a whole, than the registration rights granted to holders of the
Registrable Securities in this Agreement unless similar rights are granted to holders of
Registrable Securities. The Company shall provide the Holders’ Representative with a copy of any
such agreement promptly after its execution and the Holders’ Representative shall notify the
Company within 60 days thereafter of such more favorable terms. The failure of the Holders’
Representative to so notify the Company shall not release, waive or otherwise affect the Company’s
obligations pursuant to this Section 6(c), except to the extent that the Company is prejudiced as a
result of such failure.

     (d) Each Holder covenants and agrees that it will comply with the prospectus delivery
requirements of the Securities Act as applicable to it or an exemption there from in connection
with sale of Registrable Securities pursuant to the Registration Statement.

     7. Indemnification by the Company.

          (a) The Company shall indemnify the Holder and its Affiliates from and against any claim,
loss, cost, charge or liability of any kind, including amounts paid in settlement and reasonable
attorneys’ fees, which may be incurred by the Holder or Affiliate as a result of any material
breach of any representation or warranty or covenant of the Company contained in this Agreement or
in any certificate delivered on the closing date of any public offering of Shares.

          (b) The Company shall indemnify and hold harmless the Holder and its Affiliates, any
underwriter (as defined in the Act) for the Holder or its Affiliates, each officer and director of
the Holder, legal counsel and accountants for the Holder, and each

13

 

person, if any, who controls a Holder or such underwriter within the meaning of the Act, against any losses, expenses, claims,
damages or liabilities, joint or several, to which such Holder or any such Affiliate, underwriter,
officer, director or controlling person becomes subject, under the Act or any rule or regulation
thereunder or otherwise, insofar as such losses, expenses, claims, damages or liabilities (or
actions in respect thereof) (i) are caused by any untrue statement or alleged untrue statement of
any material fact contained in any preliminary prospectus (if used prior to the effective date of
the Registration Statement), or contained, on the effective date thereof, in any Registration
Statement in which Registrable Shares were included, the prospectus contained therein, any
amendment or supplement thereto, or any other document related to such Registration Statement, or
(ii) arise out of or are based upon the omission or alleged omission to state therein a material
fact required to be stated therein or necessary to make the statements therein not misleading, or
(iii) arise out of any violation by the Company of the Act or any rule or regulation thereunder
applicable to the Company and relating to actions or omissions otherwise required of the Company in
connection with such registration; provided, however, that the Company shall not be liable to any such persons in
any such case to the extent that any such loss, claim, damage, liability or action arises out of or
is based upon any untrue statement or alleged untrue statement or omission or alleged omission made
in reliance upon and in conformity with information furnished to the Company in writing by such
Person expressly for inclusion in any of the foregoing documents. This indemnity shall not apply
to amounts paid in settlement of any such loss, claim, damage, liability or action if such
settlement is effected without the consent of the Company, which consent shall not be unreasonably
withheld or delayed.

     8. Further Obligations of Holder. The obligations of the Company with respect to the
Holder are subject to the Holder’s agreement to the following (which the Holder shall specifically
confirm in writing to the Company upon the Company’s request in connection with any Registration
Statement):

          (a) The Holder shall indemnify and hold harmless the Company, each of its directors, each of
its officers who has signed a Registration Statement, each person (if any) who controls the Company
within the meaning of the Act, and any underwriter (as defined in the Act) for the Company, against
any losses, claims, damages or liabilities to which the Company or any such director, officer,
controlling person or underwriter may become subject under the Act or any rule or regulation
thereunder or otherwise, insofar as such losses, claims, damages or liabilities (or actions in
respect thereof) (i) are caused by any untrue statement or alleged untrue statement of any material
fact contained in any preliminary prospectus (if used prior to the effective date of the
Registration Statement), or contained, on the effective date thereof, in any Registration Statement
in which the Holder’s Registrable Securities were included, the prospectus contained therein, any
amendment or supplement thereto, or any other document related to such Registration Statement, or
(ii) arise out of or are based upon the omission or alleged omission to state therein a material
fact required to be stated therein or necessary to make the statements therein not misleading, in
each case to the extent, but only to the extent, that such untrue statement or alleged untrue
statement or omission or alleged omission

14

 

was made in reliance upon and in conformity with
information furnished to the Company by the Holder in writing expressly for inclusion in any of the
foregoing documents. In no event shall any Holder be required to pay indemnification hereunder (or
contribution under Section 9(d) below) in an aggregate amount in excess of the net proceeds
received by the Holder in the subject offering. This indemnity shall not apply to amounts paid in
settlement of any such loss, claim, damage, liability or action if such settlement is effected
without the consent of the Holder, which consent shall not be unreasonably withheld or delayed.

     9. Additional Provisions.

          (a) The Holder and each other Person indemnified pursuant to Section 7 above shall, in the
event that it receives notice of the commencement of any action against it which is based upon an
alleged act or omission which, if proven, would result in the Company’s having to indemnify it
pursuant to Section 7 above, promptly notify the Company, in writing, of the commencement of such
action and permit the Company, if
the Company so notifies such Holder within twenty (20) days after receipt by the Company of
notice of the commencement of the action, to participate in and to assume the defense of such
action with counsel reasonably satisfactory to the Holder; provided, however, that
such Holder or other indemnified person shall be entitled to retain its own counsel at its own
expense (except that the indemnifying party shall bear the expense of such separate counsel if
representation of both parties by the same counsel would be inappropriate due to actual or
potential conflicts of interest). The failure to notify the Company promptly of the commencement
of any such action shall not relieve the Company of any liability to indemnify such Holder or such
other indemnified person, as the case may be, under Section 7 above, except to the extent that the
Company shall be actually prejudiced or shall suffer any loss by reason of such failure to give
notice, and shall not relieve the Company of any other liabilities which it may have under this or
any other agreement.

          (b) The Company and each other Person indemnified pursuant to Section 8 above shall, in the
event that it receives notice of the commencement of any action against it which is based upon an
alleged act or omission which, if proven, would result in any Holder having to indemnify it
pursuant to Section 8 above, promptly notify such Holder, in writing, of the commencement of such
action and permit such Holder, if such Holder so notifies the Company within twenty (20) days after
receipt by such Holder of notice of the commencement of the action, to participate in and to assume
the defense of such action with counsel reasonably satisfactory to the Company; provided,
however, that the Company or other indemnified person shall be entitled to retain its own
counsel at the Company’s expense. The failure to notify any Holder promptly of the commencement of
any such action shall not relieve such Holder of liability to indemnify the Company or such other
indemnified person, as the case may be, under Section 8 above, except to the extent that the
subject Holder shall be actually prejudiced or shall suffer any loss by reason of such failure to
give notice, and shall not relieve such Holder of any other liabilities which it may have under
this or any other agreement.

15

 

          (c) No indemnifying party, in the defense of any such claim or litigation, shall, except with
the consent of each indemnified person who is party to such claim or litigation, consent to entry
of any judgment or enter into any settlement that does not include as an unconditional term thereof
the giving by the claimant or plaintiff to such indemnified person of a full release from all
liability in respect to such claim or litigation. Each such indemnified person shall furnish such
information regarding itself or the claim in question as an indemnifying party may reasonably
request in writing and as shall be reasonably required in connection with defense of such claim and
litigation resulting there from.

          (d) If the indemnification provided for in Section 7 and 8 is unavailable or insufficient to
hold harmless an indemnified party, then, subject to the limits set forth in Section 8(b) above,
each indemnifying party shall contribute to the amount paid or payable by such indemnified party as
a result of the expenses, claims, losses, damages or liabilities (or actions or proceedings in
respect thereof) referred to in Section 7 and 8, in such proportion as is appropriate to reflect
the relative fault of the
Company on the one hand and the sellers of Registrable Securities on the other hand in
connection with statements or omissions which resulted in such losses, claims, damages or
liabilities (or actions or proceedings in respect thereof) or expenses, as well as any other
relevant equitable considerations. The relative fault shall be determined by reference to, among
other things, whether the untrue or alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact relates to information supplied by the Company or the
sellers of Registrable Securities and the parties’ relative intent, knowledge, access to
information and opportunity to correct or prevent such untrue statement or omission. The Company
and the Holder agree that it would not be just and equitable if contributions pursuant to this
Section 9(d) were to be determined by pro rata allocation (even if all sellers of Registrable
Securities were treated as one entity for such purpose) or by another method of allocation which
does not take account of the equitable considerations referred to in the first sentence of this
Section. The amount paid by an indemnified person as a result of the expenses, claims, losses,
damages or liabilities (or actions or proceedings in respect thereof) referred to in the first
sentence of this Section 9(d) shall be deemed to include any legal or other expenses reasonably
incurred by such indemnified person in connection with investigating or defending any claim, action
or proceeding which is the subject of this Section 9(d). No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent misrepresentation. The
obligations of sellers of Registrable Securities to contribute pursuant to this Section 9(d) shall
be several in proportion to the respective amounts of Registrable Securities sold by them pursuant
to a Registration Statement.

     10. Rule 144 Information. For so long as the Company shall remain a reporting company
under the Exchange Act, the Company will at all times keep publicly available adequate current
public information with respect to the Company of the type and in the manner specified in Rule
144(c) promulgated under the Act.

16

 

     11. Notices. All notices, requests, demands and other communications required or
permitted under this Agreement shall be in writing and shall be given by personal delivery, by
telecopier (with confirmation of receipt), by recognized overnight courier service (with all
charges prepaid or billed to the account of the sender), or by certified or registered mail, return
receipt requested, and with postage prepaid, addressed (a) if to the Company:

Jefferies Group, Inc.

520 Madison Avenue

New York, New York 10021

Attention: General Counsel

          Fax: 212-284-2280

with a copy (which shall not constitute notice) to:

Morgan, Lewis & Bockius LLP

101 Park Avenue

New York, New York 10178

Attention: Stephen P. Farrell

          Fax: 212-309-6001

(b) if to the Holder:

Leucadia National Corporation

315 Park Avenue South

New York, New York 10010

Attention: Joseph S. Steinberg, President

          Fax: 212-598-3245

With a copy (which shall not constitute notice) to:

Weil, Gotshal & Manges LLP

767 Fifth Avenue

New York, New York 10153

Attention: Andrea A. Bernstein

or such other address or facsimile as shall have been specified by the Company or the Holder to the
other party by written notice. All notices shall be deemed to have been given either at the time
of the delivery or facsimile (with confirmation of receipt) thereof, or, if sent by overnight
courier, on the next business day following delivery thereof to the overnight courier service, or,
if mailed, at the completion of the third business day following the time of such mailing.

17

 

     12. Waiver and Amendment. No amendment or modification of this Agreement, or any
waiver of any performance hereunder, shall be valid unless made in writing and signed by the party
to be charged therewith.

     13. Governing Law. This Agreement shall be construed and interpreted and the rights
granted herein governed in accordance with the laws of the State of New York applicable to
contracts made and to be performed wholly within such State.

     14. Non-Assignability; Binding Effect. Neither this Agreement, nor any of the rights
or obligations of the parties hereunder, shall be assignable by any party hereto without the prior
written consent of the other parties, except that the rights of the Holder hereunder may be
assigned by the Holder to any other person who acquires Registrable Shares. Otherwise, this
Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their
respective successors and permitted assigns.

     15. Captions. The Section headings used in this Agreement are included for purposes
of convenience only, and shall not affect the construction or interpretation of any of the
provisions hereof.

     16. Gender. All pronouns used in this Agreement in the masculine, feminine or neuter
gender shall, as the context may allow, also refer to each other gender.

     17. Entire Agreement. This Agreement and the Investment Agreement constitutes the
entire agreement between the parties pertaining to the subject matter hereof, and supersedes all
prior agreements or understandings as to such subject matter. No waiver of any of the provisions
of this Agreement shall be deemed, or shall constitute, a waiver of any other provisions, whether
or not similar, nor shall any waiver constitute a continuing waiver. No waiver shall be binding
unless executed in writing by the party making the waiver. If any provision of this Agreement
shall be determined by a court of competent jurisdiction or by a duly appointed arbitrator to be
unenforceable to any extent or in any respect, then such provision shall be modified in scope or
effect, or shall be excised from this Agreement, only to such extent as may be required to render
such provision valid and enforceable, and the remainder of this Agreement shall be unaffected.

     18. Parties in Interest. Nothing in this Agreement, whether expressed or implied, is
intended to confer any rights or remedies under or by reason of this Agreement on any persons other
than the parties to it and their respective successors and permitted assigns, nor is anything in
this Agreement intended to relieve or discharge the obligations or liability of any third persons
to any party to this Agreement, nor shall any provision give any third persons any right of
subrogation or action over or against any party to this Agreement.

     19. Counterparts; Fax Signatures. This Agreement may be executed simultaneously in
any number of counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument. This Agreement

18

 

may be executed by means of fax,
electronic or portable document format signatures, which shall have the same binding legal effect
as original ink signatures.

     20. Nature of Holders’ Obligations. The obligations of each Holder under this
Agreement are several and not joint with the obligations of any other Holder, and no Holder shall
be responsible in any way for the performance of the obligations of any other Holder under this
Agreement. Nothing contained herein, and no action taken by any Holder pursuant hereto or in
connection herewith, shall be deemed to constitute the Holders as a partnership, a joint venture or
any other kind of entity, or create a presumption that the Holders are in any way acting in concert
or as a group with respect to such obligations or any of the transactions contemplated by this
Agreement.

     21. Remedies (a) Each party hereto acknowledges that monetary damages would not be
an adequate remedy in the event that any of the covenants or agreements in this Agreement is not
performed in accordance with its terms, and it is therefore agreed that, in addition to and without
limiting any other remedy or right it may have, the non-breaching party will have the right to an
injunction, temporary restraining order or other equitable relief in any court of competent
jurisdiction enjoining any such breach or threatened breach and enforcing specifically the terms
and provisions hereof. Each party
hereto agrees to waive any requirement for the securing or posting of any bond in connection
with such remedy.

          (b) All rights, powers and remedies provided under this Agreement or otherwise available in
respect hereof at law or in equity shall be cumulative and not alternative, and the exercise or
beginning of the exercise of any thereof by any party shall not preclude the simultaneous or later
exercise of any other such right, power or remedy by such party.

[Remainder of Page Intentionally Left Blank]

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          IN WITNESS WHEREOF, the Company and the Holder have executed this Agreement as of the date
first set forth above.

	 	 	 	 	 
	 	JEFFERIES GROUP, INC.

 	 
	 	By:  	/s/ Lloyd H. Feller
 	 
	 	 	Name:  	Lloyd H. Feller 	 
	 	 	Title:  	EVP, General Counsel and

Secretary 	 
	 

	 	 	 	 	 
	Accepted and Confirmed by the Holder:

LEUCADIA NATIONAL CORPORATION

 	 	 
	By:  	/s/ Joseph A. Orlando
 	 	 
	 	Name:  	Joseph A. Orlando 	 	 
	 	Title:  	Vice President

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