Document:

Exhibit
10.4

 

AMENDED
AND RESTATED

OPERATING AGREEMENT OF

IBG LLC

Dated as
of
                 ,
2007

 

 

TABLE OF
CONTENTS

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE I.

  	
  ORGANIZATION

  	
  1

  
	
  Section 1.1

  	
   

  	
  Formation

  	
  1

  
	
  Section 1.2

  	
   

  	
  Company Name

  	
  1

  
	
  Section 1.3

  	
   

  	
  Purpose

  	
  1

  
	
  Section 1.4

  	
   

  	
  Principal Place
  of Business

  	
  1

  
	
  Section 1.5

  	
   

  	
  Term

  	
  1

  
	
  Section 1.6

  	
   

  	
  Filings; Agent
  for Service of Process

  	
  2

  
	
  Section 1.7

  	
   

  	
  Definitions

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II.

  	
  CAPITAL

  	
  6

  
	
  Section 2.1

  	
   

  	
  Initial Capital

  	
  6

  
	
  Section 2.2

  	
   

  	
  Other Matters

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III.

  	
  ALLOCATIONS

  	
  6

  
	
  Section 3.1

  	
   

  	
  Profits and
  Losses

  	
  6

  
	
  Section 3.2

  	
   

  	
  Other Allocation
  Rules

  	
  6

  
	
  Section 3.3

  	
   

  	
  Allocations of
  Taxable Income or Loss

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV.

  	
  DISTRIBUTIONS

  	
  7

  
	
  Section 4.1

  	
   

  	
  Net Cash Flow

  	
  7

  
	
  Section 4.2

  	
   

  	
  Tax Priority
  Distributions

  	
  7

  
	
  Section 4.3

  	
   

  	
  Manner of
  Distributions

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V.

  	
  MANAGEMENT

  	
  8

  
	
  Section 5.1

  	
   

  	
  Authority of the
  Managing Member

  	
  8

  
	
  Section 5.2

  	
   

  	
  Right to Rely
  upon Managing Member

  	
  9

  
	
  Section 5.3

  	
   

  	
  Restrictions on
  Authority of Managing Member

  	
  10

  
	
  Section 5.4

  	
   

  	
  Duties and
  Obligations of the Managing Member

  	
  10

  
	
  Section 5.5

  	
   

  	
  Compensation and
  Expenses

  	
  11

  
	
  Section 5.6

  	
   

  	
  Signatures;
  Power of Attorney

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI.

  	
  RECORDS AND
  ACCOUNTING

  	
  11

  
	
  Section 6.1

  	
   

  	
  Records and
  Accounting

  	
  11

  
	
  Section 6.2

  	
   

  	
  Tax Information

  	
  12

  
	
  Section 6.3

  	
   

  	
  Tax Returns

  	
  12

  

 

i

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 6.4

  	
   

  	
  Accounting
  Decisions

  	
  12

  
	
  Section 6.5

  	
   

  	
  Tax Elections

  	
  12

  
	
  Section 6.6

  	
   

  	
  Fiscal Year

  	
  12

  
	
  Section 6.7

  	
   

  	
  Tax Matters

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII.

  	
  AMENDMENTS;
  MEETINGS; VOTING

  	
  12

  
	
  Section 7.1

  	
   

  	
  Amendment

  	
  12

  
	
  Section 7.2

  	
   

  	
  Amendment to
  Articles of Organization

  	
  12

  
	
  Section 7.3

  	
   

  	
  Meetings of
  Members

  	
  13

  
	
  Section 7.4

  	
   

  	
  Proxy of Member

  	
  13

  
	
  Section 7.5

  	
   

  	
  Consent or
  Voting

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII.

  	
  PROVISIONS
  RELATING TO MEMBERS

  	
  13

  
	
  Section 8.1

  	
   

  	
  Investment
  Representation

  	
  13

  
	
  Section 8.2

  	
   

  	
  Restrictions on
  Member’s Transfer of an Interest

  	
  13

  
	
  Section 8.3

  	
   

  	
  Documentation
  Regarding Interests

  	
  14

  
	
  Section 8.4

  	
   

  	
  Interests and
  Shares

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IX.

  	
  MANAGING MEMBER

  	
  14

  
	
  Section 9.1

  	
   

  	
  Appointment of
  Managing Member

  	
  14

  
	
  Section 9.2

  	
   

  	
  Permitted
  Transfers

  	
  14

  
	
  Section 9.3

  	
   

  	
  Resignation of
  Managing Member

  	
  14

  
	
  Section 9.4

  	
   

  	
  Successor
  Managing Member

  	
  15

  
	
  Section 9.5

  	
   

  	
  Rights of
  Resigned Managing Member

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE X.

  	
  ADMISSION AND
  WITHDRAWAL OF MEMBERS

  	
  15

  
	
  Section 10.1

  	
   

  	
  Admission

  	
  15

  
	
  Section 10.2

  	
   

  	
  Withdrawal and
  Dissociation

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XI.

  	
  DISSOLUTION AND
  LIQUIDATION

  	
  15

  
	
  Section 11.1

  	
   

  	
  Dissolution

  	
  15

  
	
  Section 11.2

  	
   

  	
  Winding-Up of
  Affairs

  	
  16

  
	
  Section 11.3

  	
   

  	
  Liquidating
  Distributions

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XII.

  	
  MISCELLANEOUS

  	
  17

  
	
  Section 12.1

  	
   

  	
  Notices

  	
  17

  

 

ii

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 12.2

  	
   

  	
  Binding Effect

  	
  17

  
	
  Section 12.3

  	
   

  	
  Construction

  	
  17

  
	
  Section 12.4

  	
   

  	
  Headings

  	
  17

  
	
  Section 12.5

  	
   

  	
  Severability

  	
  18

  
	
  Section 12.6

  	
   

  	
  Incorporation by
  Reference

  	
  18

  
	
  Section 12.7

  	
   

  	
  Further Action

  	
  18

  
	
  Section 12.8

  	
   

  	
  No Other
  Beneficiaries

  	
  18

  
	
  Section 12.9

  	
   

  	
  Variation of
  Pronouns

  	
  18

  
	
  Section 12.10

  	
   

  	
  Governing Law

  	
  18

  
	
  Section 12.11

  	
   

  	
  Waiver of Action
  for Partition

  	
  18

  
	
  Section 12.12

  	
   

  	
  Counterpart
  Execution

  	
  18

  
	
  Section 12.13

  	
   

  	
  Sole and
  Absolute Discretion

  	
  18

  
	
  Section 12.14

  	
   

  	
  Non-Arbitrability

  	
  18

  

 

iii

 

AMENDED AND RESTATED OPERATING AGREEMENT OF IBG LLC

 

This
AMENDED AND RESTATED OPERATING AGREEMENT of IBG LLC (formerly known as Interactive
Brokers Group LLC) (the “Company”) is entered into and shall be effective as of
the commencement of business on the      day of                   ,
2007, by and among IBG Holdings LLC, a Delaware limited liability company (“IBG
Holdings”), and Interactive Brokers Group, Inc., a Delaware corporation
(“IBGI”), pursuant to the provisions of the Act, on the terms and conditions
set forth hereinafter.

 

WHEREAS,
the Company was originally established as The Timber Hill Group LLC, and
changed its name to Interactive Brokers Group LLC on February 15, 2001 and to
IBG LLC on November 20, 2006; and

 

WHEREAS,
as a condition of the sale of Interests in the Company to IBGI and the
admission of IBGI to the Company as the Managing Member, IBG Holdings and IBGI
have agreed to restate the Operating Agreement of the Company as hereinafter
set forth.

 

NOW,
THEREFORE, IBGI and IBG Holdings, as the holders of all of the Interests in the
Company, do hereby amend and restate the Operating Agreement of the Company in
its entirety as follows:

 

ARTICLE
I.

ORGANIZATION

 

Section 1.1                                      Formation.
The Company was established as a limited liability company and is and shall be
governed by the provisions of the Act, as hereinafter defined, and upon the
terms and conditions set forth in this Agreement.

 

Section 1.2                                      Company
Name. The name of the Company is IBG LLC, and all business of the Company
shall be conducted in such name.

 

Section 1.3                                      Purpose.
The purpose of the Company is any lawful act or activity for which limited
liability companies may be formed under Sections 34-100 to 34-242, inclusive,
of the Act.

 

Section 1.4                                      Principal
Place of Business. The principal place of business of the Company shall be
at such place as the Managing Member may designate. The Managing Member may
change the principal place of business of the Company to any other place upon
fifteen (15) days notice to the other Members.

 

Section 1.5                                      Term.
The term of the Company commenced upon the filing of the Articles of
Organization as described in Section 1.6(a) and shall continue until the
winding up

 

1

 

and liquidation of the Company, and the completion of its business
following a dissolution event, as provided in Article XII hereof.

 

Section 1.6                                      Filings;
Agent for Service of Process.

 

(a)                                  The
Articles of Organization of the Company were filed as required by and in
conformance with Section 34-121 of the Act (the “Articles of Organization”) on
July 1, 1996. The Managing Member shall further cause to be executed, filed and
recorded and shall cause to be published, if required by law, such other
certificates or other instruments as may be necessary or desirable under the
laws of any state in which the Company does business.

 

(b)                                 The
address to which the Secretary of State shall send service of process is c/o
Bergman, Horowitz & Reynolds, P.C., 157 Church Street, 19th Floor, New
Haven, Connecticut 06510.

 

(c)                                  Upon
the dissolution and following the wind-up and liquidation of the Company, the
Managing Member shall promptly execute and cause to be filed Articles of
Dissolution in accordance with the Act and the laws of any other states or
jurisdictions in which the Company may have filed Articles or certificates.

 

Section 1.7                                      Definitions.
Capitalized words and phrases used in this Agreement have the following
meanings:

 

“Act” means the Connecticut Limited Liability Company Act as
set forth in Title 34, Chapter 613, Sections 34-100 to 34-242, inclusive, of
the Connecticut General Statutes, as amended from time to time (or any corresponding
provisions of succeeding law).

 

“Agreement” or “Operating Agreement”
means this Amended and Restated Operating Agreement of IBG LLC, as amended from
time to time. Words such as “herein,” “hereinafter,” “hereof,” “hereto,” and
“hereunder” refer to this Agreement as a whole, unless the context otherwise
requires.

 

“Capital Contribution” means, with respect to any Member, the
amount of money and the initial Gross Asset Value of any property (other than
money) contributed to the Company with respect to the Interest in the Company
held by such Member pursuant to the terms of this Agreement.

 

“Code” means the Internal Revenue Code of 1986, as amended
from time to time (or any corresponding provisions of succeeding law).

 

“Company” means IBG LLC, a Connecticut limited liability
company.

 

“Depreciation” means, for each fiscal year or other period,
an amount equal to the depreciation, amortization, or other cost recovery
deduction allowable with respect to an asset for such year or other period,
except that if the Gross Asset Value of an asset differs from its

 

2

 

adjusted basis for federal income tax purposes at the
beginning of such year or other period, Depreciation shall be an amount which
bears the same ratio to such beginning Gross Asset Value as the federal income
tax depreciation, amortization or other cost recovery deduction for such year
or other period bears to such beginning adjusted tax basis; provided, however,
that if the federal income tax depreciation, amortization or other cost
recovery deduction for such year is zero, Depreciation shall be determined with
reference to such beginning Gross Asset Value using any reasonable method
selected by the Managing Member.

 

“Exchange Agreement” means that certain Exchange Agreement,
dated as of [        ], 2007, by and
among IBGI, the Company, IBG Holdings and the former members of the Company,
pursuant to which, among other things provided therein, (i) the former members
of the Company contributed their interests in the Company to IBG Holdings in
exchange for interests therein, (ii) IBG Holdings sold to IBGI a portion of IBG
Holdings’ interests in the Company, (iii) the IBG Holdings members were granted
certain rights to have their interests redeemed by IBG Holdings; (iv) IBG
Holdings was granted certain rights to redeem the interests of the IBG Holdings
members; and (v) IBGI agreed to undertake public offerings of IBGI Common Stock
and to purchase interests in the Company from IBG Holdings from time to time as
specified therein.

 

“Gross Asset Value” means, with respect to any asset, the
asset’s adjusted basis for federal income tax purposes, except as follows:

 

(i)                                     The
initial Gross Asset Value of any asset contributed by a Member to the Company
shall be the gross fair market value of such asset, as determined by the
Company;

 

(ii)                                  The
Gross Asset Values of all Company assets shall be adjusted to equal their
respective gross fair market values, as determined by the Managing Member, as
of the following times:  (a) the
acquisition of an additional Interest in the Company by any new or existing
Member in exchange for more than a de minimis Capital Contribution; (b) the
distribution by the Company to a Member of more than a de minimis amount of
Property as consideration for the redemption of an Interest in the Company; (c)
the liquidation of the Company within the meaning of Regulations Section
1.704-1(b)(2)(ii)(g); and (d)any other
circumstance when the Managing Member, in its discretion, determines that a
revaluation of the Property of the Company is necessary to properly reflect the
economic relationship of the Members to one another and the Company;

 

(iii)                               The
Gross Asset Value of any Company asset distributed to any Member shall be the
gross fair market value of such asset on the date of distribution; and

 

(iv)                              The
Gross Asset Values of Company assets shall be increased (or decreased) to
reflect any adjustments to the adjusted basis of such assets pursuant to Code
Section 734(b) or Code Section 743(b), but only to the extent that such
adjustments are taken into account pursuant to Regulations Section
1.704-1(b)(2)(iv)(m); provided, however, that Gross Asset Values shall not be
adjusted pursuant to this clause (iv) to the extent the Managing

 

3

 

Member determines that an adjustment pursuant to
clause (ii) above is necessary or appropriate in connection with a transaction
that would otherwise result in an adjustment pursuant to this clause (iv).

 

If the
Gross Asset Value of an asset has been determined or adjusted pursuant to
clause (i), clause (ii) or clause (iv) of this definition, such Gross Asset
Value shall thereafter be adjusted by the Depreciation taken into account with
respect to such asset for purposes of computing Profits and Losses.

 

“IBGI Common Stock” means Class A common stock, par value
$0.01 per share, of IBGI.

 

“Interest” means an ownership interest in the Company by a
Member, including any and all benefits to which the holder of such an Interest
may be entitled as provided in this Agreement, together with all obligations of
such Member to comply with the terms and provisions of this Agreement.

 

“Liquidator” means the Managing Member or its successor or,
if none, such other Person selected by a vote of the Members to conduct the
winding-up of the Company and distribution of its assets following dissolution
of the Company.

 

“Managing Member” means IBGI or a successor Managing Member
appointed in accordance herewith.

 

“Member” means IBG Holdings and IBGI or any other Person who
has become a Member pursuant to the terms of this Agreement and who has not
ceased to be a Member. “Members” means all such Members.

 

“Net Cash Flow” means the gross cash proceeds from Company
operations and from sales or refinancings attributable to Company assets less
the portion thereof used to pay or establish reserves for all Company expenses,
debt payments, capital improvements, replacements and contingencies, all as
reasonably determined by the Managing Member. Net Cash Flow shall not be
reduced by depreciation, amortization, cost recovery deductions or similar
allowances, but shall be increased by any reductions of reserves previously
established.

 

“Person” means any individual, partnership, corporation,
trust or other entity.

 

“Profits” and “Losses” means,
for each fiscal year or other period, an amount equal to the Company’s taxable
income or loss for such year or period, determined in accordance with Code
Section 703(a) (for this purpose, all items of income, gain, loss, or deduction
required to be stated separately pursuant to Code Section 703(a)(1) shall be
included in taxable income or loss), with the following adjustments:

 

4

 

(v)                                 Any
income of the Company that is exempt from federal income tax and not otherwise
taken into account in computing Profits or Losses shall be added to such
taxable income or loss;

 

(vi)                              Any
expenditures of the Company described in Code Section 705(a)(2)(B) or treated
as Code Section 705(a)(2)(B) expenditures pursuant to Regulations Section
1.704-1(b)(2)(iv)(i), and not otherwise taken into account in computing Profits
or Losses, shall be subtracted from such taxable income or loss;

 

(vii)                           In the
event the Gross Asset Value of any Company asset is adjusted, the amount of
such adjustment shall be taken into account as if gain or loss from the
disposition of such asset for purposes of computing Profits or Losses;

 

(viii)                        Gain or
loss resulting from any disposition of Property with respect to which gain or
loss is recognized for federal income tax purposes shall be computed by
reference to the Gross Asset Value of the property disposed of, notwithstanding
that the adjusted tax basis of such property differs from its Gross Asset
Value; and

 

(ix)                                In
lieu of the depreciation, amortization, and other cost recovery deductions
taken into account in computing such taxable income or loss, there shall be
taken into account Depreciation for such fiscal year or other period.

 

“Property” means all real and personal property acquired by
the Company and any improvements thereto, and shall include both tangible and
intangible property.

 

“Regulations” means the Income Tax Regulations promulgated
under the Code, as such Regulations may be amended from time to time (including
corresponding provisions of succeeding regulations).

 

“Shares” means the units into which the Interests are divided
and by reference to which votes of the Members are determined and allocations
of Profits and Losses and distributions of Net Cash Flow are made. Shares are
fungible, and each Share shall have the same economic rights and exercise the
same voting power as each other Share.

 

“Tax Priority” with respect to a holder of Shares means, with
respect to each year, an amount equal to the sum of (i) the product of (A) the
highest combined federal, state and local income tax rate, taking into account
the federal deduction for state and local taxes, for individuals resident in
New York City and (B) the amount of allocations of taxable income (exclusive of
net capital gain) to the Shares of such holder with respect to such year and
(ii) the product of (A) the highest combined federal, state and local income
tax rate, taking into account the federal deduction for state and local taxes,
on long term capital gains for individuals resident in New York City and (B)
the amount of allocations of net capital gain to the Shares of such holder with
respect to such year; provided that the rates used to compute the Tax
Priority shall be no less than the actual combined federal, state and local
income tax rates applicable to the allocable shares of income and net capital
gain of the Managing Member.

 

5

 

“Transfer” means, as a noun, any voluntary or involuntary
transfer, sale, pledge, hypothecation, or other disposition and, as a verb,
voluntarily or involuntarily to transfer, sell, assign, mortgage, give, create
a security interest in or lien on, encumber, place in trust (voting or
otherwise), pledge, hypothecate, or otherwise dispose of.

 

ARTICLE
II.

CAPITAL

 

Section 2.1                                      Initial
Capital. The names, addresses, Capital Contributions and number of Shares
of each of the Members, including any changes thereto from time to time, shall
be maintained in the records of the Company and shall be made available to any
Member upon request.

 

Section 2.2                                      Other
Matters.

 

(a)                                  Except
as otherwise provided in this Agreement, no Member shall demand or receive a
return of its Capital Contributions or its entitlements with respect to its
Shares, at any time, or withdraw from the Company without the consent of the
Managing Member.

 

(b)                                 No
Member shall be liable for the debts, liabilities, contracts or any other
obligations of the Company by reason of this Agreement. Except as otherwise
provided by this Agreement any other agreements among the Members or applicable
state law, no Member shall be required to make any additional Capital
Contributions to the Company or lend any funds to the Company; and no Member
shall have any personal liability for the repayment of any Capital
Contributions of any other Member.

 

ARTICLE
III.

ALLOCATIONS

 

Section 3.1                                      Profits
and Losses. Profits and Losses of the Company, and each item thereof, shall
be allocated among the Members in accordance with the number of Shares held by each.

 

Section 3.2                                      Other
Allocation Rules.

 

(a)                                  It
is the intention of the Members that all allocations provided in this Agreement
be made in accordance with Code Section 704(b), and Regulation Section 1.704-1;
and, notwithstanding anything to the contrary contained herein, the Managing
Member may provide for the allocation of any item or items, for tax purposes or
otherwise, including the allocation of any item or items to the Members as may
be necessary to be consistent therewith.

 

(b)                                 In
the event of a change in ownership of Shares and for purposes of determining
the Profits, Losses or any other items allocable to any period, Profits, Losses
and

 

6

 

any such other items shall be determined on a daily,
monthly or other basis, as determined by the Managing Member using any
permissible method under Code Section 706 and the Regulations thereunder.

 

Section 3.3                                      Allocations
of Taxable Income or Loss.

 

(a)                                  Items
of income, deduction, gain and loss that are recognized by the Company for
federal income tax purposes shall be allocated among the Members consistent
with the allocations of such items under Sections 3.1 and 3.2. To the extent
appreciation or depreciation in asset values is reflected in capital accounts
prior to recognition for tax purposes, allocations shall be made in accordance
with the principles and provisions of Section 704(c) of the Code.

 

(b)                                 All
items of federal income tax credit and items of tax credit recapture shall be
allocated among the Members in accordance with the Members’ interests in the
Company as of the time the tax credit or credit recapture arises, as provided
in Regulation Section 1.704-1(b)(4)(ii).

 

(c)                                  Allocations
pursuant to this Section 3.3 are solely for purposes of federal, state and
local taxes. As such, they shall not affect or in any way be taken into account
in computing a Member’s capital account or share of Profits or Losses or of
distributions pursuant to any provision of this Agreement.

 

ARTICLE
IV.

DISTRIBUTIONS

 

Section 4.1                                      Net
Cash Flow. Except as provided in Section 4.2, Net Cash Flow, as determined
by the Managing Member, shall be distributed among the Members at such times as
the Managing Member determines, in its sole discretion.

 

Section 4.2                                      Tax
Priority Distributions. Subject to the availability of Net Cash Flow, the
Managing Member shall distribute to the Members on an annual basis with respect
to each year and within 90 days following the end of such year amounts equal to
no less than the Tax Priority with respect to their Shares for such year.

 

Section 4.3                                      Manner
of Distributions. Each distribution to the Members shall be made to the
holders of the Shares as reflected in registry of Shares of the Company on the
record date for the distribution and in proportion to the number of Shares held
by each Member.

 

7

 

ARTICLE
V.

MANAGEMENT

 

Section 5.1                                      Authority
of the Managing Member. Subject to the provisions of Section 5.3, the
Managing Member shall manage the business of the Company and shall have all of
the rights and powers which may be possessed by managing members under the Act
including, without limitation, the right and power to:

 

(a)                                  acquire
by purchase, lease or otherwise any real or personal property which may be necessary,
convenient, or incidental to the accomplishment of the purposes of the Company;

 

(b)                                 deal
in any Company assets, whether real property or personal property;

 

(c)                                  operate,
maintain, finance, improve, construct, own, grant options with respect to,
sell, convey, assign, mortgage and lease any real estate and any personal
property necessary, convenient, or incidental to the accomplishment of the
purposes of the Company;

 

(d)                                 execute
any and all agreements, contracts, documents, certifications, and instruments
necessary or convenient in connection with the management, maintenance and
operation of Property, or in connection with managing the affairs of the
Company, including executing amendments to the Agreement and the Articles of
Organization in accordance with the terms of the Agreement pursuant to any
power of attorney granted by the Members to the Managing Member;

 

(e)                                  borrow
money and issue evidences of indebtedness necessary, convenient or incidental
to the accomplishment of the purposes of the Company, and secure the same by
mortgage, pledge, or other lien on any Property;

 

(f)                                    execute,
in furtherance of any or all of the purposes of the Company, any deed, lease,
mortgage, deed of trust, mortgage note, promissory note, bill of sale, contract
or other instrument purporting to convey or encumber any or all of the
Property;

 

(g)                                 prepay
in whole or in part, refinance, recast increase, modify or extend any
liabilities affecting the Property and in connection therewith execute any
extensions or renewals of encumbrances on any or all of the Property;

 

(h)                                 care
for and distribute funds to the Members by way of cash, income, return of
capital or otherwise, all in accordance with the provisions of this Agreement;
and perform all matters in furtherance of the objectives of the Company or this
Agreement

 

(i)                                     appoint
officers and agents of the Company and delegate to such Persons authority
granted to the Managing Member hereunder;

 

8

 

(j)                                     contract
on behalf of the Company for the employment and services of employees and/or
independent contractors, such as lawyers, accountants, and Members, and
delegate to such Persons the duty to manage or supervise any of the assets or
operations of the Company, and enter into agreements with respect to their
activities on behalf of the Company;

 

(k)                                  engage
in any kind of activity and perform and carry out contracts of any kind
(including contracts of insurance covering risks to Property and Managing
Member’s liability) necessary or incidental to, or in connection with, the
accomplishment of the purposes of the Company, as may be lawfully carried on or
performed by a limited liability company under the laws of each state in which
the Company is then formed or qualified;

 

(l)                                     vote
securities held by the Company;

 

(m)                               make
any and all elections for federal, state and local tax purposes including,
without limitation, any election, if permitted by applicable law:  (i) to adjust the basis of Property pursuant
to Code Sections 754, 734(b), and 743(b), or comparable provisions of state or
local law, in connection with transfers of Interests and Company distributions;
(ii) to extend the statute of limitations for assessment of tax deficiencies
against the Members with respect to adjustments to the Company’s federal,
state, or local’ tax returns; and (iii) to represent the Company and the
Members before taxing authorities or courts of competent jurisdiction in tax
matters affecting the Company and the Members in their capacities as Members
and to execute any agreements or other documents relating to or affecting such
tax matters, including agreements or other documents that bind the Members with
respect to such tax matters or otherwise affect the rights of the Company or
the Members;

 

(n)                                 take,
or refrain from taking, all actions, not expressly proscribed or limited by
this Agreement as may be necessary or appropriate to accomplish the purposes of
the Company;

 

(o)                                 institute,
prosecute, defend, settle, compromise, and dismiss lawsuits or other judicial
or administrative proceedings brought on or in behalf of, or against the
Company or the Members in connection with activities arising out of, connected
with, or incidental to this Agreement, and to engage counsel or others in
connection therewith; and

 

(p)                                 acquire
and enter into any contract of insurance which the Managing Member reasonably
deems necessary and proper for the protection of the Company, for the
conservation of any asset of the Company, or for any purpose beneficial to the
Company.

 

Section 5.2                                      Right
to Rely upon Managing Member. Any Person dealing with the Company may rely
(without duty of further inquiry) upon a certificate signed by the Managing
Member as to:

 

(a)                                  the
identity of the Managing Member or any other Member;

 

9

 

(b)                                 the
existence or nonexistence of any fact or facts which constitute a condition
precedent to acts by the Managing Member or which are in any other manner
germane to the affairs of the Company;

 

(c)                                  the
Members who are authorized to execute and deliver any instrument or document of
the Company; or

 

(d)                                 any
act or failure to act by the Company or any other matter whatsoever involving
the Company or any Member.

 

Section 5.3                                      Restrictions
on Authority of Managing Member. Except with the prior written consent of
all of the Members, the Managing Member shall not have the authority to:

 

(a)                                  do
any act in contravention of this Agreement;

 

(b)                                 knowingly
perform any act that would subject any Member to personal liability for debts
or obligations of the Company in any jurisdiction;

 

(c)                                  engage
in any activity which substantially changes the nature of the Company’s
business;

 

(d)                                 sell
all or a substantial portion of the Property of the Company;

 

(e)                                  merge
or consolidate the Company with or into another entity;

 

(f)                                    convert
the Company, by whatever means, into a corporation or another form of business
entity; or

 

(g)                                 dissolve
or liquidate the Company.

 

Section 5.4                                      Duties
and Obligations of the Managing Member. The Managing Member shall:

 

(a)                                  take
all actions which may be necessary or appropriate (i) for the continuation of
the Company’s valid existence as a limited liability company under the laws of
the State of Connecticut (and of each other jurisdiction in which such
existence is necessary to protect the limited liability of the Members or to
enable the Company to conduct the business in which it is engaged) and (ii) for
the accomplishment of the Company’s purposes, including the acquisition,
development maintenance, preservation and operation of Property in accordance
with the provisions of this Agreement and applicable laws and regulations;

 

(b)                                 devote
to the Company such time as may be necessary for the proper performance of all
duties hereunder in the discretion of the Managing Member;

 

10

 

(c)                                  be
under a fiduciary duty to conduct the affairs of the Company in the best
interests of the Company and of the Members, including the safekeeping and use
of all of the Property and the use thereof for the exclusive benefit of the
Company;

 

(d)                                 use
its reasonable efforts to cause the Company to be formed, reformed, qualified
or registered under assumed or fictitious name statutes or similar laws in any
state or country in which the Company owns property or transacts business if
such formation, reformation, qualification or registration is necessary in
order to protect the limited liability of the Members or to permit the Company
lawfully to own property or transact business; and

 

(e)                                  manage
and control the affairs of the Company and in doing so use its reasonable
efforts to carry out the purpose of the Company for the benefit of all of the
Members and in exercising its powers, recognize its fiduciary responsibility to
the Company.

 

Section 5.5                                      Compensation
and Expenses.

 

(a)                                  No
Member shall receive any salary, fee or draw for services rendered to or on
behalf of the Company, except as the Managing Member shall determine.

 

(b)                                 The
Managing Member may charge the Company for expenses reasonably incurred in
connection with the Company’s business and operations. For avoidance of doubt,
the Members acknowledge that IBGI has been formed to provide access by the
Company to the capital markets and IBG Holdings has been formed to assure a
continuity in management of the Company during the transition to public
ownership through IBGI. The Members acknowledge and agree that the expenses of
operation and maintenance of IBGI and IBG Holdings shall be borne by the
Company as an expense of operations pursuant hereto.

 

Section 5.6                                      Signatures;
Power of Attorney. Subject to the limitations imposed by Section 5.1, the
signature of the Managing Member shall be necessary and sufficient to convey
title to any real property owned by the Company or to execute any promissory notes,
trust deeds, mortgages or other instruments of hypothecation. All of the
Members agree that a copy of appropriate provisions of this Agreement may be
shown to the appropriate parties in order to confirm the same, and further
agree that the signature of the Managing Member shall be sufficient to execute
any documents necessary to effectuate this or any other provision of this
Agreement. All of the Members do hereby appoint the Managing Member as their
attorney-in-fact for the execution of any or all of the documents described
herein.

 

ARTICLE
VI.

RECORDS AND ACCOUNTING

 

Section 6.1                                      Records
and Accounting. Proper and complete records and books of account of the
business of the Company shall be maintained at the Company’s principal place of
business. All books and records of the Company shall be kept in accordance with
Generally Accepted Accounting Principles in the United States (U.S. “GAAP”).

 

11

 

Section 6.2                                      Tax
Information. Prior to the day on which the Company’s tax return for such
fiscal year is filed, the Managing Member shall cause to be delivered to each
Person who was a Member at any time during such fiscal year all information
necessary for the preparation of such Member’s federal income tax return,
including a statement showing such Member’s distributive share of the Company’s
income, gains, losses, deductions, credits and tax preferences for the taxable
year of the Company ending within or with its taxable year for federal income
tax purposes, and the amount of any distribution made to or for the account of
such Member pursuant to this Agreement; provided, however, that within ninety
(90) days after the end of each fiscal year, the Managing Member shall cause to
be delivered to each such Person an estimate of all such information.

 

Section 6.3                                      Tax
Returns. The Managing Member shall cause all required federal and state and
local information returns for the Company to be prepared and timely filed with
the appropriate authorities.

 

Section 6.4                                      Accounting
Decisions. All decisions as to accounting principles used for financial
reporting and tax accounting purposes shall be made by the Managing Member on a
basis that is acceptable to the Company’s accountants notwithstanding any other
provisions to the contrary contained in this Agreement.

 

Section 6.5                                      Tax
Elections. The Managing Member may, from time to time, make the tax
elections it deems necessary, in its sole discretion to carry out the business
of the Company or the purposes of this Agreement. However, the Managing Member
shall cause the Company to elect, pursuant to Code Section 754 of the Code, to
adjust the basis of Company property upon the transfer of an Interest or
distribution of property as provided by the Code.

 

Section 6.6                                      Fiscal
Year. The fiscal year of the Company shall be the calendar year.

 

Section 6.7                                      Tax
Matters. The Managing member shall act for the Company as “tax matters
partner” for purposes of Section 6231(a)(7) of the Code.

 

ARTICLE
VII.

AMENDMENTS; MEETINGS; VOTING

 

Section 7.1                                      Amendment.
Except as otherwise required by law or as provided elsewhere in this Agreement,
this Agreement may be amended in any respect only with the unanimous consent of
the Members.

 

Section 7.2                                      Amendment
to Articles of Organization. In the event this Agreement shall be amended
pursuant to this Article VII, the Managing Member shall amend the Articles of
Organization to reflect such change if the Managing Member deems such amendment
to be necessary.

 

12

 

Section 7.3                                      Meetings
of Members. Meetings for purposes of voting shall be called by the Managing
Member who shall be required to give written notice thereof to all Members
entitled to vote at such meeting no less than ten (10) days and no more than
thirty (30) days prior to the date of such meeting. Any such notice shall state
briefly the purpose of the meeting, which shall be held at a reasonable time
and at the principal office of the Company or such other location as shall be
stated in the notice.

 

Section 7.4                                      Proxy
of Member. Each Member may authorize any Person or Persons to act for it by
proxy on all matters in which a Member is entitled to participate, including
waiving notice of any meeting or voting or participating at a meeting. Every
proxy must be signed by the Member or its attorney-in-fact. Every proxy shall
be revocable at the pleasure of the Member executing it.

 

Section 7.5                                      Consent
or Voting.

 

(a)                                  All
voting shall be based on the Shares outstanding and not the number of Members.

 

(b)                                 In
the event that the consent or vote of the Members shall be required for any
action hereunder and no specific proportion is stated herein, the affirmative
vote of the Members holding more than fifty percent (50%) of the total number
of Shares outstanding shall be required for such action. Where a consent or
vote of a specified percentage of Members or Interests is required, the
affirmative vote of Members holding at least such specified percentage of the
total number of Shares outstanding shall be required.

 

ARTICLE
VIII.

PROVISIONS RELATING TO MEMBERS

 

Section 8.1                                      Investment
Representation. Each Member represents and warrants that (a) its Interest
is acquired for investment and not with a view to the resale or other
distribution thereof, (b) it is understood that none of the Interests have been
registered under the Securities Act of 1933 or any similar legislation in any
other country or jurisdiction, and that there may be no market for any
Interest, and (c) the Interest is obtained without the benefit of any representation,
warranty, or other assurance with respect to the financial condition or
prospects of the Company or its Members or other representatives thereof.

 

Section 8.2                                      Restrictions
on Member’s Transfer of an Interest.

 

(a)                                  Except
as provided in paragraph (b) of this Section 8.2, no Member may Transfer all or
any portion of its Shares or any rights or entitlements deriving from its
Interest in the Company at any time or howsoever acquired without the written
consent of the remaining Members, which consent may be denied for any reason
whatsoever.

 

13

 

(b)                                 Shares
may be Transferred from time to time by IBG Holdings to IBGI in exchange for
the proceeds of the sale by IBGI of IBGI Common Stock pursuant to and in accordance
with the Exchange Agreement.

 

Section 8.3                                      Documentation
Regarding Interests. The Members’ Interests shall be documented and
recorded by an entry on the Company’s books and shall not be certificated or
otherwise documented except as may be determined by the Managing Member. If any
Transfer of a Member’s Interest is permitted pursuant to the terms of this
Agreement, such Transfer shall after receipt by the Managing Member of all
required documentation thereof be made by a proper entry on the books of the
Company. Any Transfer which is required pursuant to the terms of the Exchange
Agreement may be effected by the Managing Member without further action by the
Transferring Member.

 

Section 8.4                                      Interests
and Shares. Upon the date of this Agreement, the number of Shares into
which the Interests are divided corresponds to the sum of the number of shares
of IBGI Common Stock outstanding and common shares (representing membership
interests) of IBG Holdings outstanding. It is the intent of the Members that
this relationship remain constant throughout the term of the Company. It is
anticipated that from time to time and without regard to the Exchange
Agreement, IBGI may issue additional shares of IBGI Common Stock under
incentive plans for employees (including IBGI’s 2007 Stock Incentive Plan), in
exchange for capital or in other arrangements that benefit the Company. In any
such case, it is the intention of the Members that a corresponding number of
Shares shall be issued to IBGI in exchange for the consideration received by it
for its issuance of additional shares of IBGI Common Stock. If any shares of
IBGI Common Stock are issued subject to restrictions resulting in forfeiture to
IBGI or are otherwise redeemed by IBGI, a corresponding number of Shares of the
Company shall be surrendered to the Company by IBGI for cancellation.
Similarly, if any common shares of IBG Holdings are forfeited to IBG Holdings
and as a result thereof are no longer outstanding, a corresponding number of
Shares of the Company shall be surrendered to the Company by IBG Holdings for
cancellation. These and other adjustments to the number of Shares outstanding
may be made from time to time as necessary to properly reflect the relative
Interests of the Members.

 

ARTICLE
IX.

MANAGING MEMBER

 

Section 9.1                                      Appointment
of Managing Member. By the Members’ execution of this Agreement, IBGI is
appointed as Managing Member.

 

Section 9.2                                      Permitted
Transfers. A Managing Member may transfer all or any portion of its
Interest to any Person only with the consent of the remaining Members.

 

Section 9.3                                      Resignation
of Managing Member. Upon ninety (90) days prior written notice, any
Managing Member may resign. In the event of the resignation of a Managing
Member, a successor Managing Member shall be appointed as provided in Section
9.4 below.

 

14

 

Section 9.4                                      Successor
Managing Member. If the Managing Member ceases to act as Managing Member,
the successor Managing Member shall be selected by the majority vote of the Members.
The successor Managing Member shall become a Managing Member upon its written
acceptance of the appointment and written agreement to be bound as a Managing
Member under the terms of this Agreement. In the event a successor Managing
Member is designated and accepts the designation, the successor Managing Member
shall assume all the duties and obligations of the predecessor Managing Member
set forth in this Agreement

 

Section 9.5                                      Rights
of Resigned Managing Member.

 

(a)                                  The
resignation of a Managing Member shall not affect its right to reimbursement
for expenses incurred.

 

(b)                                 A
resigned Managing Member (which term, for purposes of this section, shall
include its successors and assigns) shall continue to have the rights and
obligations of a Member with respect to its continuing Interest, if any.

 

ARTICLE
X.

ADMISSION AND WITHDRAWAL OF MEMBERS

 

Section 10.1                                Admission.
No Person, other than an existing Member, shall acquire an Interest directly
from the Company or otherwise be admitted as a Member of the Company except
with the consent of the Managing Member and an approving vote of the remaining
Members. Any Person to be admitted as a Member shall execute such documents and
instruments, including an agreement to be bound by the terms of this Agreement,
and shall satisfy such other conditions as the Managing Member shall require.

 

Section 10.2                                Withdrawal
and Dissociation. No Member shall be permitted to withdraw from the Company
without the consent of the Managing Member and an approving vote of the remaining
Members. Anything in Section 34-180 of the Act to the contrary notwithstanding,
except as expressly provided herein, no Member shall be entitled to receive any
distribution of money or other property prior to the dissolution and
liquidation of the Company.

 

ARTICLE
XI.

DISSOLUTION AND LIQUIDATION

 

Section 11.1                                Dissolution.
The Company shall continue until the occurrence of any one or more of the
following events:

 

(a)                                  such
time that the Managing Member, with an approving vote of the remaining Members,
determines to dissolve the Company; or

 

15

 

(b)                                 upon
the bankruptcy, resignation, dissolution, or withdrawal of the Managing Member,
or upon the occurrence of any event which, under the provisions of the Act,
would cause a dissolution; provided, however, that upon such an
occurrence, no dissolution shall occur if the Members, by a majority vote,
elect to continue the business of the Company and appoint a successor Managing
Member in accordance with Section 9.4.

 

No
Member has the right, on account of any dissolution of the type described in
this Section 11.1, to have the Company’s assets applied to discharge its
liabilities or to have the value of its Interest ascertained or paid for.

 

Section 11.2                                Winding-Up
of Affairs. Upon the dissolution of the Company in accordance with the
provisions of this Agreement, the Company shall immediately commence winding up
its affairs and shall file a notice of dissolution or cancellation. The
winding-up of the affairs of the Company and the distribution of its assets
shall be conducted exclusively by the Liquidator, who is hereby authorized to
do all acts authorized by law for these purposes. Without limiting the
generality of the foregoing, the Liquidator, in carrying out such winding-up
and distribution, shall have full power and authority to sell all or any of the
Company assets or to distribute the same in kind to the Members. Any assets
distributed in kind shall be subject to all operating agreements or other
agreements relating thereto which shall survive the termination of the Company.
Following the winding-up of the Company, the proceeds from liquidation of
Company assets shall be applied and distributed as set forth in Section 11.3.

 

Section 11.3                                Liquidating
Distributions.

 

(a)                                  Following
dissolution of the Company and incident to the winding-up of the Company’s
affairs, all debts and liabilities of the Company shall be discharged in the
order of priority provided by law. The fair market value of the respective
remaining assets of the Company shall then be determined; with the fair market
value of any assets other than cash being determined by an independent
appraiser selected by the Liquidator with the approval of a majority vote of
the Members. Thereupon, the assets of the Company shall be distributed to the
Members in proportion to the number of Shares held by each Member in relation
to the aggregate number of outstanding Shares. For purposes of such allocation
only, it shall be assumed that the assets of the Company other than cash had
been sold for an amount equal to their fair market value as determined above,
and that the income, gain or loss from such sale had been allocated in
accordance with Article III. Each Member shall receive its share of the assets
in cash or in kind, and the proportion of such share that is received in cash
may vary from Member to Member, all as the Liquidator may decide. Except as
provided below, if such distributions are insufficient to return to any Member
the full amount of its Capital Contributions, such Member shall have no
recourse against the Company or any other Member.

 

(b)                                 The
proceeds of liquidation and any unliquidated assets of the Company shall be
distributed as provided in Section 11.3(a). Any reserves established by the
Liquidator in the course of such distribution shall be held for so long as the
Liquidator shall deem necessary in a special account maintained by the
Liquidator for the purpose of paying contingent or unforeseen liabilities or
obligations. At the time the Liquidator determines that there is no longer

 

16

 

a need for the reserve, it shall be distributed in the
order of priority established in Section 11.3(a). The distribution of the
reserve shall commence where the initial distribution of the assets of the
Company ended. For purposes of this Section 11.3, expenses of dissolution and
liquidation shall be treated as debts and obligations of the Company.

 

ARTICLE
XII.

MISCELLANEOUS

 

Section 12.1                                Notices.
All notices, consents, approvals, requests, demands or other communications
(“notices”) which any of the parties to this Agreement may desire to be
required to give hereunder, shall be in writing and shall be deemed properly
given if (i) hand delivered, (ii) sent by private or public mail carrier which
provides evidence of delivery, (iii) sent by United States, certified or
registered mail, postage prepaid, return receipt requested, (iv) sent by
facsimile transmission or (v) sent by electronic mail, in each case addressed as
follows:

 

(a)                                  to
the Company, or the Managing Member, at the principal place of business of the
Company or to such other addresses as may be designated by the Managing Member
by notice to all Members pursuant to the terms of this Section; and

 

(b)                                 to
Members at the address set forth on the signature page hereto or to such other
addresses as may be designated by the respective Members by notice to the
Company from time to time.

 

Any distribution made, or
notice given, to a Member at its last known address as shown on the records of
the Company shall be considered effective three (3) days after deposit in any
post office or branch post office, regularly maintained by the United States
government and shall completely satisfy the obligations of the Company hereunder
in respect of such distribution or notice. Any notice to be given by any Member
may be given by counsel or attorney-in-fact for that Member.

 

Section 12.2                                Binding
Effect. Unless otherwise provided herein, every covenant, term, and
provision of this Agreement shall be binding upon and inure to the benefit of
the Members and their respective heirs, legatees, legal representatives,
successors, transferees, and assigns, and shall inure to the benefit of the
Company, its successors and assigns.

 

Section 12.3                                Construction.
Every covenant, term, and provision of this Agreement shall be construed simply
according to its fair meaning and not strictly for or against the Company or
any Member.

 

Section 12.4                                Headings.
Section and other headings contained in this Agreement are for reference
purposes only and are not intended to describe, interpret, define, or limit the
scope, extent, or intent of this Agreement or any provision hereof.

 

17

 

Section 12.5                                Severability.
Every provision of this Agreement is intended to be severable. If any term or
provision hereof is illegal or invalid for any reason whatsoever, such legality
or invalidity shall not affect the validity or legality of the remainder of
this Agreement.

 

Section 12.6                                Incorporation
by Reference. Every exhibit, schedule, and other appendix attached to this
Agreement and referred to herein is hereby incorporated in this Agreement by
reference.

 

Section 12.7                                Further
Action. Each Member, upon the request of the Managing Member, agrees to
perform all further acts and execute, acknowledge, and deliver any documents
which may be reasonably necessary, appropriate, or desirable to carry out the
provisions of this Agreement.

 

Section 12.8                                No
Other Beneficiaries. The rights and obligations of the Members under this
Agreement are for the exclusive benefit of the Members, and no creditor or
other party having dealings with the Company shall have any right or claim
hereunder.

 

Section 12.9                                Variation
of Pronouns. All pronouns and any variations thereof shall be deemed to
refer to masculine, feminine, or neuter, singular or plural, as the identity of
Member or Members may require.

 

Section 12.10                          Governing
Law. The laws of the State of Connecticut shall govern the validity of this
Agreement, the construction of its terms, and the interpretation of the rights
and duties of the Members. In the event this Agreement is in conflict with any
other agreement among any of the parties hereto, the provisions of this
Agreement shall prevail.

 

Section 12.11                          Waiver
of Action for Partition. Each of the Members irrevocably waives any right
that it may have to maintain any action for partition with respect to any of
the Property of the Company.

 

Section 12.12                          Counterpart
Execution. This Agreement may be executed in any number of counterparts
with the same effect as if all of the Members had signed the same document. All
counterparts shall be construed together and shall constitute one agreement.

 

Section 12.13                          Sole
and Absolute Discretion. Except as otherwise provided in this Agreement,
all actions which the Managing Member may take and all determinations which the
Managing Member may make pursuant to this Agreement may be taken and made at
the sole and absolute discretion of the Managing Member. In the event there
shall be more than one Managing Member, all such actions and determinations
shall be taken and made by the unanimous vote of all Managing Members.

 

Section 12.14                          Non-Arbitrability.
Notwithstanding any other provision of this Agreement or any rules or
regulations of any regulatory body, no controversy, claim, or breach arising
out of or relating to this Agreement shall be submitted for settlement to a
panel of arbitrators, and the

 

18

 

Members agree that any such disputes shall be
determined only by a court having jurisdiction thereof in accordance with this
Agreement.

 

[Signatures appear
on the following page.]

 

19

 

IN
WITNESS WHEREOF, the parties have entered into this Agreement as of the date
and year first above set forth.

 

	
   

  	
  IBG HOLDINGS LLC

  
	
   

  	
   

  
	
   

  	
  One Pickwick Plaza

  Greenwich, CT  06830

  Facsimile No.: (203) 618-5934

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name: Thomas Peterffy

  
	
   

  	
   

  	
  Title: Managing Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  INTERACTIVE BROKERS
  GROUP, INC.

  
	
   

  	
   

  
	
   

  	
  One Pickwick Plaza

  Greenwich, CT  06830

  Facsimile No.: (203) 618-5934

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name: Thomas Peterffy

  
	
   

  	
   

  	
  Title: Chairman, Chief
  Executive

  Officer and President

  

 

20Exhibit 10.5

 

 

LIMITED LIABILITY COMPANY AGREEMENT OF

IBG HOLDINGS LLC

 

 

Dated as of                  ,
2007

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE I.

  	
  ORGANIZATION

  	
  1

  
	
  Section 1.1.

  	
   

  	
  Formation

  	
  1

  
	
  Section 1.2.

  	
   

  	
  Company Name

  	
  1

  
	
  Section 1.3.

  	
   

  	
  Purpose

  	
  1

  
	
  Section 1.4.

  	
   

  	
  Principal Place of
  Business

  	
  1

  
	
  Section 1.5.

  	
   

  	
  Term

  	
  1

  
	
  Section 1.6.

  	
   

  	
  Filings; Agent for
  Service of Process

  	
  1

  
	
  Section 1.7.

  	
   

  	
  Definitions

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II.

  	
  CAPITAL

  	
  6

  
	
  Section 2.1.

  	
   

  	
  Initial Capital

  	
  6

  
	
  Section 2.2.

  	
   

  	
  Classes and Series of
  Interests

  	
  7

  
	
  Section 2.3.

  	
   

  	
  Interests Not
  Certificated

  	
  9

  
	
  Section 2.4.

  	
   

  	
  Other Matters

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III.

  	
  ALLOCATIONS

  	
  9

  
	
  Section 3.1.

  	
   

  	
  Allocations of Profits
  and Losses

  	
  9

  
	
  Section 3.2.

  	
   

  	
  Allocations of Taxable
  Income or Loss

  	
  9

  
	
  Section 3.3.

  	
   

  	
  Allocations When
  Interests Change

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV.

  	
  DISTRIBUTIONS

  	
  10

  
	
  Section 4.1.

  	
   

  	
  Distributions of Net
  Cash Flow

  	
  10

  
	
  Section 4.2.

  	
   

  	
  Distributions of Tax
  Benefit Payments

  	
  10

  
	
  Section 4.3.

  	
   

  	
  Clawback of Tax Benefit
  Distributions

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V.

  	
  MANAGEMENT

  	
  11

  
	
  Section 5.1.

  	
   

  	
  Authority of the
  Managing Member

  	
  11

  
	
  Section 5.2.

  	
   

  	
  Right to Rely upon
  Managing Member

  	
  13

  
	
  Section 5.3.

  	
   

  	
  Restrictions on
  Authority of Managing Members

  	
  13

  
	
  Section 5.4.

  	
   

  	
  Duties and Obligations
  of the Managing Member

  	
  14

  
	
  Section 5.5.

  	
   

  	
  Compensation and
  Expenses

  	
  14

  
	
  Section 5.6.

  	
   

  	
  Signatures; Power of
  Attorney

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI.

  	
  RECORDS
  AND ACCOUNTING

  	
  15

  
	
  Section 6.1.

  	
   

  	
  Records and Accounting

  	
  15

  

 

i

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 6.2.

  	
   

  	
  Tax Information

  	
  15

  
	
  Section 6.3.

  	
   

  	
  Tax Returns

  	
  15

  
	
  Section 6.4.

  	
   

  	
  Accounting Decisions

  	
  15

  
	
  Section 6.5.

  	
   

  	
  Tax Elections

  	
  15

  
	
  Section 6.6.

  	
   

  	
  Fiscal Year

  	
  15

  
	
  Section 6.7.

  	
   

  	
  Tax Matters

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII.

  	
  AMENDMENTS;
  MEETINGS; VOTING

  	
  15

  
	
  Section 7.1.

  	
   

  	
  Amendment

  	
  15

  
	
  Section 7.2.

  	
   

  	
  Amendment to Certificate
  of Formation

  	
  16

  
	
  Section 7.3.

  	
   

  	
  Meetings of Members

  	
  16

  
	
  Section 7.4.

  	
   

  	
  Proxy of Member

  	
  16

  
	
  Section 7.5.

  	
   

  	
  Consent or Voting

  	
  16

  
	
  Section 7.6.

  	
   

  	
  Conversion of Series B
  Shares into Voting Shares

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII.

  	
  PROVISIONS
  RELATING TO MEMBERS

  	
  16

  
	
  Section 8.1.

  	
   

  	
  Investment
  Representation

  	
  16

  
	
  Section 8.2.

  	
   

  	
  No Assurance of
  Employment

  	
  17

  
	
  Section 8.3.

  	
   

  	
  Restrictions on Member’s
  Transfer of an Interest

  	
  17

  
	
  Section 8.4.

  	
   

  	
  Member’s Elective
  Redemption

  	
  17

  
	
  Section 8.5.

  	
   

  	
  Company’s Optional
  Redemption of Interests

  	
  18

  
	
  Section 8.6.

  	
   

  	
  Documentation of
  Transfer of Interests

  	
  19

  
	
  Section 8.7.

  	
   

  	
  Confidentiality;
  Non-Compete

  	
  19

  
	
  Section 8.8.

  	
   

  	
  Termination of
  Employment

  	
  20

  
	
  Section 8.9.

  	
   

  	
  Modifications of
  Agreement

  	
  20

  
	
  Section 8.10.

  	
   

  	
  Consent to Specific
  Performance

  	
  21

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IX.

  	
  MANAGING
  MEMBER

  	
  21

  
	
  Section 9.1.

  	
   

  	
  Appointment of Managing
  Member

  	
  21

  
	
  Section 9.2.

  	
   

  	
  Permitted Transfers

  	
  21

  
	
  Section 9.3.

  	
   

  	
  Resignation of Managing
  Member

  	
  21

  
	
  Section 9.4.

  	
   

  	
  Removal of Managing
  Member

  	
  21

  
	
  Section 9.5.

  	
   

  	
  Successor Managing
  Member

  	
  21

  

 

ii

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 9.6.

  	
   

  	
  Rights of Former
  Managing Member

  	
  21

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE X.

  	
  ADMISSION
  AND WITHDRAWAL OF MEMBERS

  	
  22

  
	
  Section 10.1.

  	
   

  	
  Admission

  	
  22

  
	
  Section 10.2.

  	
   

  	
  Withdrawal and
  Dissociation

  	
  22

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XI.

  	
  MERGER,
  CONSOLIDATION OR SALE; DISSOLUTION AND LIQUIDATION

  	
  22

  
	
  Section 11.1.

  	
   

  	
  Merger, Consolidation
  or Sale

  	
  22

  
	
  Section 11.2.

  	
   

  	
  Dissolution

  	
  22

  
	
  Section 11.3.

  	
   

  	
  Winding Up of Affairs

  	
  22

  
	
  Section 11.4.

  	
   

  	
  Liquidating
  Distributions

  	
  23

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XII.

  	
  POWER
  OF ATTORNEY

  	
  23

  
	
  Section 12.1.

  	
   

  	
  Managing Member as
  Attorney-In-Fact

  	
  23

  
	
  Section 12.2.

  	
   

  	
  Nature as Special Power

  	
  24

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XIII.

  	
  MISCELLANEOUS

  	
  24

  
	
  Section 13.1.

  	
   

  	
  Notices

  	
  24

  
	
  Section 13.2.

  	
   

  	
  Binding Effect

  	
  25

  
	
  Section 13.3.

  	
   

  	
  Incorporation by
  Reference

  	
  25

  
	
  Section 13.4.

  	
   

  	
  Sole and Absolute
  Discretion

  	
  25

  
	
  Section 13.5.

  	
   

  	
  Independent Activities

  	
  25

  
	
  Section 13.6.

  	
   

  	
  Non-Arbitrability

  	
  25

  
	
  Section 13.7.

  	
   

  	
  Further Action

  	
  25

  
	
  Section 13.8.

  	
   

  	
  No Other Beneficiaries

  	
  25

  
	
  Section 13.9.

  	
   

  	
  Governing Law

  	
  25

  
	
  Section 13.10.

  	
   

  	
  Waiver of Action for
  Partition

  	
  25

  
	
  Section 13.11.

  	
   

  	
  Construction

  	
  26

  
	
  Section 13.12.

  	
   

  	
  Headings

  	
  26

  
	
  Section 13.13.

  	
   

  	
  Severability

  	
  26

  
	
  Section 13.14.

  	
   

  	
  Variation of Pronouns

  	
  26

  
	
  Section 13.15.

  	
   

  	
  Counterpart Execution

  	
  26

  

 

iii

 

LIMITED LIABILITY COMPANY AGREEMENT OF IBG HOLDINGS LLC

 

THIS LIMITED LIABILITY COMPANY AGREEMENT OF IBG
HOLDINGS LLC is entered into and shall be effective as of the commencement of
business on the     day of          ,
2007, by and among the individuals and entities executing this Agreement (whose
names are set forth in Schedule A attached hereto), pursuant to the
provisions of the Delaware Limited Liability Company Act, on the terms and
conditions set forth hereinafter.

 

WHEREAS, the initial Members are former members of IBG
LLC, a Connecticut limited liability company (formerly known as Interactive
Brokers Group LLC) who have transferred their interests in IBG LLC to the
Company in anticipation of a sale of a portion of such interests by the Company
to Interactive Brokers Group, Inc., a Delaware corporation (“IBGI”), all as
integral steps in the reorganization of the ownership of IBG LLC incident to
the initial public offering of Class A common stock, par value $0.01 per
share, of IBGI; and

 

NOW, THEREFORE, the undersigned, as the holders of all
of the Interests in the Company, do hereby join in this Agreement with respect
to the ownership, management, operation and governance of the internal affairs
of the Company as follows:

 

ARTICLE I.

ORGANIZATION

 

Section 1.1.                                   Formation.
The parties hereto have formed a limited liability company pursuant to the
provisions of the Delaware Limited Liability Company Act and upon the terms and
conditions set forth in this Agreement.

 

Section 1.2.                                   Company
Name. The name of the Company shall be IBG Holdings LLC, and all business
of the Company shall be conducted in such name.

 

Section 1.3.                                   Purpose.
The purpose of the Company is any lawful act or activity for which limited
liability companies may be formed under the Act.

 

Section 1.4.                                   Principal
Place of Business. The principal place of business of the Company shall be at
such place as the Managing Member may designate.

 

Section 1.5.                                   Term.
The term of the Company shall commence upon the effective date of formation of
the Company as provided in the Act and shall continue until the winding up and
liquidation of the Company, and the completion of its business following a
dissolution event, as provided in Article XII hereof.

 

Section 1.6.                                   Filings;
Agent for Service of Process.

 

(a)                                  On
behalf of the Members, the Managing Member has caused to be filed and recorded
an appropriate Certificate of Formation of the Company. The Managing Member

 

1

 

shall further cause to be
executed, filed and recorded and shall cause to be published, if required by
law, such other certificates or other instruments as may be necessary or
desirable under the laws of any state in which the Company does business.

 

(b)                                 The
address to which the Secretary of State shall send service of process is c/o
Corporation Service Company, 2711 Centerville Road, Suite 400, Wilmington,
Delaware 19808. The Company may, upon compliance with the applicable provisions
of the Act, change its registered office or registered agent from time to time
in the discretion of the Managing Member.

 

(c)                                  Upon
the dissolution of the Company and following the wind-up and liquidation of the
Company, the Managing Member shall promptly execute and cause to be filed a
Certificate of Cancellation in accordance with the Act and the laws of any
other states or jurisdictions in which the Company may have filed its
Certificate of Formation or other certificates of qualification or existence.

 

Section 1.7.                                   Definitions.
Capitalized words and phrases used in this Agreement have the following
meanings:

 

“Act” means the
Delaware Limited Liability Company Act, as amended from time to time (or any
corresponding provisions of succeeding law).

 

“Affiliate”
means, with respect to the Company, any person or entity directly or indirectly
controlling, controlled by or under common control with the Company, or a
successor to the business of the Company (by way of purchase of assets, or
otherwise). For purposes of this definition, “control” means the direct or indirect
ownership of at least fifty percent (50%) of all outstanding Voting Shares or
at least fifty percent (50%) of the fair market value of all Interests.

 

“Agreement”
means this Limited Liability Company Agreement of IBG Holdings LLC, as amended
from time to time. Words such as “herein,” “hereinafter,” “hereof,” “hereto,”
and “hereunder” refer to this Agreement as a whole, unless the context
otherwise requires.

 

“Base Rate”
means the prime rate as published in the Wall Street Journal on the date the
relevant obligation arises.

 

“Capital Contribution”
means, with respect to any Member, the amount of money and the initial Gross
Asset Value of any property (other than money) contributed to the Company with
respect to the Interest in the Company held by such Member pursuant to the
terms of this Agreement.

 

“Code” means the
Internal Revenue Code of 1986, as amended from time to time (or any
corresponding provisions of succeeding law).

 

“Common Shares”
means the units representing a class of Interests in the Company,
exclusive of the Tax Benefit Shares but including the Series A Shares, the
Series B Shares and the Series C Shares, having the rights specified
in Section 2.2 and by reference to which allocations of Profits and Losses
(exclusive of Profits and Losses derived from Tax Benefit Payments) and
distributions of Net Cash Flow are made.

 

2

 

“Company” means
IBG Holdings LLC, the limited liability company formed pursuant to this
Agreement.

 

“Depreciation”
means, for each fiscal year or other period, an amount equal to the
depreciation, amortization, or other cost recovery deduction allowable with
respect to an asset for such year or other period, except that if the Gross
Asset Value of an asset differs from its adjusted basis for federal income tax
purposes at the beginning of such year or other period, Depreciation shall be
an amount which bears the same ratio to such beginning Gross Asset Value as the
federal income tax depreciation, amortization or other cost recovery deduction
for such year or other period bears to such beginning adjusted tax basis;
provided, however, that if the federal income tax depreciation, amortization or
other cost recovery deduction for such year is zero, Depreciation shall be
determined with reference to such beginning Gross Asset Value using any
reasonable method selected by the Managing Member.

 

“Exchange Agreement”
means that certain Exchange Agreement, dated as of [      ],
2007, by and among IBGI, the Company, IBG LLC and the initial Members, pursuant
to which, among other things provided therein, (i) the Members contribute
their interests in IBG LLC to the Company in exchange for Interests, (ii) the
Company will sell, and IBGI will purchase, a portion of the Company’s interests
in IBG LLC, (iii) the Members are granted certain rights to have their
Interests redeemed by the Company; (iv) the Company is granted certain
rights to redeem the Interests of the Members; and (v) IBGI agrees to
undertake public offerings of IBGI Common Stock and to purchase interests in
IBG LLC from the Company from time to time as specified therein.

 

“Fair Market Value”
shall be determined as follows:

 

(i)                                     Fair
Market Value of a Common Share of the Company, and of any IBG LLC interest held
by the Company means, as of the date of determination, the closing price per
share of Common Stock on the primary national securities exchange on which the
Common Stock is traded, as reported by Bloomberg L.P. or, if Bloomberg L.P. is
not available, as determined by another reputable third-party information
source selected by IBGI; and

 

(ii)                                  Fair
Market Value of any other assets (other than cash, which shall be the face
amount thereof) shall be determined by an independent appraiser selected by the
Managing Member (or, in the context of the winding up of the Company, such
other Person as may be charged with winding up the Company), with the
approval of the holders of a majority of the Voting Shares.

 

“General Redemption Date”
means any of the first and each subsequent anniversary date of the date of the initial
public offering of IBGI Common Stock, being              ,
2007.

 

“Gross Asset Value”
means, with respect to any asset, the asset’s adjusted basis for federal income
tax purposes, except as follows:

 

(i)                                     The
initial Gross Asset Value of any asset contributed by a Member to the Company
shall be the gross fair market value of such asset, as determined by the
Company;

 

3

 

(ii)                                  The
Gross Asset Values of all Company assets shall be adjusted to equal their
respective gross fair market values, as determined by the Managing Member, as
of the following times: (a) the issuance of an additional Interest in the
Company to any new or existing Member; (b) the redemption of an Interest
in the Company; (c) the liquidation of the Company within the meaning of
Regulations Section 1.704-1(b)(2)(ii)(g); and (d) any other
circumstance when the Managing Member, in its discretion, determines that a
revaluation of the Property of the Company is necessary to properly reflect the
economic relationship of the Members to one another and the Company;

 

(iii)                               The
Gross Asset Value of any Company asset distributed or deemed distributed to any
Member shall be the gross fair market value of such asset on the date of
distribution, which in the case of a share of IBG LLC transferred to IBGI on
behalf of a Member pursuant to the Exchange Agreement shall equal the Fair
Market Value of a share of IBGI Common Stock; and

 

(iv)                              The
Gross Asset Values of Company assets shall be increased (or decreased) to
reflect any adjustments to the adjusted basis of such assets pursuant to Code Section 734(b) or
Code Section 743(b), but only to the extent that such adjustments are
taken into account pursuant to Regulations Section 1.704-1(b)(2)(iv)(m);
provided, however, that Gross Asset Values shall not be adjusted pursuant to
this clause (iv) to the extent the Managing Member determines that an
adjustment pursuant to clause (ii) above is necessary or appropriate in
connection with a transaction that would otherwise result in an adjustment
pursuant to this clause (iv).

 

If the Gross Asset Value of an asset has been
determined or adjusted pursuant to clause (i), clause (ii) or clause (iv) of
this definition, such Gross Asset Value shall thereafter be adjusted by the
Depreciation taken into account with respect to such asset for purposes of
computing Profits and Losses.

 

“IBGI” is
defined in the preamble to this Agreement.

 

“IBGI Common Stock”
means the Class A common stock , par value $0.01 per share, of IBGI.

 

“IBG LLC” means
the Connecticut limited liability company, formerly known as Interactive
Brokers Group LLC, referred to in the preamble to this Agreement.

 

“Interest” means
any ownership interest in the Company by a Member, including any and all
benefits to which the holder of such an Interest may be entitled as
provided in this Agreement, together with all obligations of such Member to
comply with the terms and provisions of this Agreement. The Members’ Interests
in the Company are divided into units and classified as either Common Shares or
Tax Benefit Shares.

 

“Liquidator”
means the Managing Member or its successor or, if none, such other Person
selected by a vote of the Members to conduct the winding-up of the Company and
distribution of its assets following dissolution of the Company.

 

4

 

“Managing Member”
means any Member who has become a Managing Member in accordance with the terms
of this Agreement and who has not ceased to be a Managing Member pursuant
hereto. “Managing Members” means all such Members.

 

“Member” means
any Member (i) whose name is set forth as such on Schedule A attached
hereto, or who has become a Member pursuant to the terms of this Agreement, and
(ii) who has not ceased to be a Member. “Members” means all such Members.

 

“Net Cash Flow”
means the gross cash receipts of the Company received from IBG LLC and from any
other source, exclusive, however, of Tax Benefit Payments received from IBGI,
less the portion thereof used to pay Company expenses or establish reserves,
all as reasonably determined by the Managing Member. Net Cash Flow shall not be
reduced by depreciation, amortization, cost recovery deductions or similar
allowances, but shall be increased by any reductions of reserves previously
established.

 

“Person” means
any individual, partnership, corporation, trust, or other entity.

 

“Profits” and “Losses” means, for each fiscal year or other period, an
amount equal to the Company’s taxable income or loss for such year or period,
determined in accordance with Code Section 703(a) (for this purpose,
all items of income, gain, loss, or deduction required to be stated separately
pursuant to Code Section 703(a)(1) shall be included in taxable
income or loss), with the following adjustments:

 

(i)                                     Any
income of the Company that is exempt from federal income tax and not otherwise
taken into account in computing Profits or Losses shall be added to such
taxable income or loss;

 

(ii)                                  Any
expenditures of the Company described in Code Section 705(a)(2)(B) or
treated as Code Section 705(a)(2)(B) expenditures pursuant to
Regulations Section 1.704-1(b)(2)(iv)(i), and not otherwise taken into
account in computing Profits or Losses, shall be subtracted from such taxable
income or loss;

 

(iii)                               In
the event the Gross Asset Value of any Company asset is adjusted, the amount of
such adjustment shall be taken into account as gain or loss from the
disposition of such asset for purposes of computing Profits or Losses;

 

(iv)                              Gain
or loss resulting from any disposition of Property with respect to which gain
or loss is recognized for federal income tax purposes shall be computed by
reference to the Gross Asset Value of the property disposed of, notwithstanding
that the adjusted tax basis of such property differs from its Gross Asset
Value; and

 

5

 

(v)                                 In
lieu of the depreciation, amortization, and other cost recovery deductions
taken into account in computing such taxable income or loss, there shall be
taken into account Depreciation for such fiscal year or other period.

 

“Property” means
all real and personal property acquired by the Company and any improvements
thereto, and shall include both tangible and intangible property.

 

“Redemption Notice”
is defined in Section 8.5.

 

“Redemption Request”
is defined in Section 8.4.

 

“Regulations”
means the Income Tax Regulations promulgated under the Code, as such
Regulations may be amended from time to time (including corresponding
provisions of succeeding regulations).

 

“Series A Shares,”
“Series B Shares,” and “Series C Shares,” in each case means the units
representing Common Shares of the Company having the rights specified in Section 2.2.

 

“Tax Benefit Payments”
means payments received by the Company from IBGI pursuant to the Tax Receivable
Agreement.

 

“Tax Benefit Shares”
means the units representing a class of Interests in the Company that is
entitled to participate in allocations of Profits attributable to Tax Benefit
Payments and distributions of the proceeds thereof.

 

“Tax Receivable Agreement”
means that certain agreement dated [    
], 2007, by and between IBGI and the Company providing for, among other
things, the payment of amounts equal to 85% of tax savings derived by IBGI from
adjustments to the basis of the assets of IBG LLC underlying the interests in
IBG LLC acquired by IBGI from the Company.

 

“Transfer”
means, as a noun, any voluntary or involuntary transfer, sale, pledge,
hypothecation, or other disposition and, as a verb, voluntarily or involuntarily
to transfer, sell, assign, mortgage, give, create a security interest in or
lien on, encumber, place in trust (voting or otherwise), pledge, hypothecate,
or otherwise dispose of.

 

“Voting Shares”
means Series A Shares and, from and after the time specified in Section 7.6,
Series B Shares.

 

ARTICLE II.

CAPITAL

 

Section 2.1.                                   Initial
Capital. Each of the Members has contributed to the Company as his initial
Capital Contribution such Member’s interest in IBG LLC. The names, addresses,
IBG LLC membership interests contributed to the Company and number, classes and
series of Shares of the Company received in exchange therefor of each of
the Members are as set forth in Schedule A hereto. In the event that 

 

6

 

the number of Shares held
by any Member shall change during the year, the foregoing shall be reflected on
an amended or supplemental Schedule A, to be prepared by the Managing
Member.

 

Section 2.2.                                   Classes
and Series of Interests. The Interests in the Company shall initially
be divided into two classes:  the Common
Shares and the Tax Benefit Shares. The Common Shares shall be further divided
into three Series:  the Series A
Shares, the Series B Shares and the Series C Shares. Finally, the Series C
Shares shall be further divided into Series C Profits Shares and Series C
Capital Shares. The foregoing classes and series of Interests shall have
the following respective and relative rights:

 

(a)                                  Series A
Shares shall initially be the only Interests with the right to vote on any
matter submitted for a vote, or requiring the consent or approval, of the
Members. The holders of Series B Shares shall initially have no voting
rights, but Series B Shares may become Voting Shares as provided in Section 7.6.
The holders of Series C Shares shall have no voting rights.

 

(b)                                 As
Common Shares, Series A Shares, Series B Shares and Series C
Shares (which consist of Series C Profits Shares and Series C Capital
Shares) shall represent an interest in both Profits and capital of the Company,
exclusive of Profits and capital attributable to Tax Benefit Payments, each
with equal rights to share therein.

 

(c)                                  Each
Series C Capital Share shall represent an interest in capital of the
Company determined by reference to the capital account corresponding to such Series C
Capital Share at the date of its original issuance; and each Series C
Profits Share shall represent an interest in profits of the Company allocated
to a Series C Share from and after the date of issuance of such Series C
Profits Share. In the event a Series C Profits Share and a Series C
Capital Share are issued in conjunction with one another, on their date of
issuance the Series C Capital Share shall have a capital account balance
equal to the capital account of each outstanding Series A Share and each
outstanding Series B Share as of such date, and the Series C Profits
Share shall have no balance in its capital account at the date of issuance.

 

(d)                                 No
Capital Contribution will be required as consideration for the issuance of Series C
Profits Shares (other than future services to IBG LLC or the Company), provided
that upon the date hereof Series C Profits Shares shall be issued in
exchange for Members’ contributions of corresponding profits interests in IBG
LLC.

 

 

7

 

(e)                                  Tax
Benefit Shares shall represent an interest in Profits and capital of the
Company attributable to Tax Benefit Payments. Tax Benefit Shares shall have no
voting rights. Tax Benefit Shares shall be owned by the Members in the same
numbers and proportions as the Members initially own the Series A Shares
and Series B Shares; and, subject to earlier cancellation as set forth in
Sections 8.7 and 8.8 hereof, Tax Benefit Shares of any Member shall expire and
be cancelled by the Company when no remaining Tax Benefit Payments are
receivable by the Company.

 

(f)                                    Upon
the date of this Agreement, the number of outstanding Common Shares of the
Company plus the number of outstanding shares of IBGI Common Stock shall equal the
number of outstanding shares of IBG LLC. It is the intent of the Members that
this relationship remain constant throughout the term of the Company. If any Series C
Shares are forfeited to the Company pursuant to Sections 8.7 or 8.8 hereof, a
corresponding number of shares of IBG LLC shall be surrendered to IBG LLC for
cancellation. In addition, in the case of any redemption of Common Shares by
the Company as authorized by Section 8.4 and Section 8.5, it is
intended that the redemption purchase price be provided to the Company through
the sale of a corresponding number of IBG LLC shares to IBGI, which will fund
its purchase of such IBG LLC shares through an offering and sale of IBGI Common
Stock, provided that, in the discretion of the Managing Member, IBG LLC may be
allowed to redeem IBG LLC shares held by the Company to fund any such
redemption of Common Shares. These and other adjustments to the number of
Common Shares outstanding may be made from time to time as necessary to
properly reflect the relative Interests of the Members.

 

 

8

 

Section 2.3.                                   Interests
Not Certificated. Unless otherwise determined by the Managing Member, the
Members’ Interests and the Shares representing the same shall be documented and
recorded solely by an entry on the Company’s books.

 

Section 2.4.                                   Other
Matters.

 

(a)                                  Except
as otherwise provided in this Agreement, no Member shall demand or receive a
return of his Capital Contributions or his entitlements with respect to his
Interest, at any time, or withdraw from the Company without the consent of the
Managing Member.

 

(b)                                 No
Member shall be personally liable for the debts, liabilities, contracts or any
other obligations of the Company by reason of this Agreement. Except as
otherwise provided in Section 4.3 of this Agreement, any other agreements
among the Members or applicable state law, no Member shall be required to lend
any funds to the Company or, after his initial Capital Contributions have been
paid, to make any additional contributions to the Company, and no Member shall
have any personal liability for the repayment of any Capital Contributions of
any other Member.

 

ARTICLE III.

ALLOCATIONS

 

Section 3.1.                                   Allocations
of Profits and Losses.

 

(a)                                  Except
as otherwise provided in this Article III, all Profits and Losses of the
Company, and each item thereof, exclusive of Profits derived from Tax Benefit
Payments, shall be allocated among the Members in accordance with the number of
Common Shares held by each, with the allocations of Profits to be made with
respect to the Series C Shares to be made to the holders of the Series C
Profits Shares.

 

(b)                                 Profits
derived from Tax Benefit Payments shall be allocated among the holders of Tax
Benefit Shares in accordance with the number of Tax Benefit Shares held by each.
Losses derived from payments in satisfaction of a Tax Benefit Clawback
Obligation shall be allocated among the holders of Tax Benefit Shares who bear
such obligation as provided in Section 4.3.

 

Section 3.2.                                   Allocations
of Taxable Income or Loss.

 

(a)                                  Items
of income, deduction, gain and loss that are recognized by the Company for
federal income tax purposes shall be allocated among the Members consistent
with the allocations of such items under Sections 3.1 and 3.2. To the extent
appreciation or depreciation in asset values is reflected in capital accounts
prior to recognition for tax purposes, allocations shall be made in accordance
with the principles and provisions of Section 704(c) of the Code.

 

(b)                                 All
items of federal income tax credit and items of tax credit recapture shall be
allocated among the Members in accordance with the Members’ interests in the

 

9

 

Company as of the time
the tax credit or credit recapture arises, as provided in Regulation Section 1.704-1(b)(4)(ii).

 

(c)                                  The
Managing Member may, in his discretion, make a special allocation of net
capital gain to a Member whose Interest in the Company is redeemed during the
fiscal year as appropriate to reduce the amount of the difference, if any,
between the purchase price payable by the Company for such Member’s Interest
and the federal income tax basis thereof, determined as of the effective date
of redemption.

 

Section 3.3.                                   Allocations
When Interests Change. In the event that the number of Shares held by any
Member shall change during the year, allocations made under this Article III
to each such Member shall be prorated according to the number of Shares held by
each Member for each portion of the year, on a daily, monthly or other basis,
as determined by the Managing Member using any permissible method under Code Section 706
and the Regulations thereunder.

 

ARTICLE IV.

DISTRIBUTIONS

 

Section 4.1.                                   Distributions
of Net Cash Flow.

 

(a)                                  Net
Cash Flow, as determined by the Managing Member, shall be distributed to the
Members at least annually, and at such other times as the Managing Member may decide,
in its sole discretion.

 

(b)                                 Each
distribution of Net Cash Flow among the Members shall be made to the holders of
the outstanding Series A, Series B and Series C Shares, as
reflected in registry of Common Shares of the Company on the record date for
the distribution, in proportion to the number of Common Shares held by each
Member, with the share distributable with respect to the Series C Shares
to be distributed to the holders of Series C Profits Shares up to the
amount of cumulative net Profits allocated thereto, and thereafter to the
holder of the Series C Capital Shares corresponding thereto.

 

Section 4.2.                                   Distributions
of Tax Benefit Payments.

 

(a)                                  Tax
Benefit Payments received by the Company shall be distributed by the Company
within 90 days following the receipt thereof.

 

(b)                                 Tax
Benefit Payments shall be allocated among and distributed to the holders of Tax
Benefit Shares in accordance with the number of Tax Benefit Shares held by each,
subject to the forfeiture provisions contained in Sections 8.7 and 8.8 hereof.

 

Section 4.3.                                   Clawback
of Tax Benefit Distributions.

 

(a)                                  If
the Company is obligated under the Tax Receivable Agreement to pay back to IBGI
all or a portion of any Tax Benefit Payment received by the Company from IBGI
(a “Tax Benefit Clawback Obligation”) and the Company has insufficient funds to
pay such

 

10

 

amount, the Managing
Member shall call for such additional amount as is necessary to satisfy such
obligations, in which case each Member shall contribute to the Company, when
and as called, such Person’s pro rata share of the amount called by the
Managing Member determined pursuant to Section 4.3(b); provided that, a
Member shall not be obligated to contribute to the Company pursuant to this Section 4.3(a) an
aggregate amount which exceeds the lesser of (i) the aggregate amount of
distributions with respect to Tax Benefit Payments received by such Member from
the Company pursuant to this Agreement, or (ii) such Person’s pro rata
share of the amounts called by the Managing Member as determined pursuant to Section 4.3(b) hereof.

 

(b)                                 Any
contribution required to fund a Tax Benefit Clawback Obligation will be funded
by the Members pro rata according to the respective aggregate amounts of Tax
Benefit distributions received by or on behalf of such Members prior to the
date of such contribution.

 

(c)                                  In
no event shall the Members be obligated pursuant to this Section 4.3 to
contribute to the Company an aggregate amount with respect to the Tax Benefit
Clawback Obligation in excess of the aggregate amount the Company is obligated
to pay to IBGI pursuant to Section 3.04 of the Tax Receivable Agreement.

 

(d)                                 A
Member’s obligation to make contributions to the Company under this Section 4.3
shall survive the termination, dissolution, liquidation and winding up of the
Company, and for purposes of this Section 4.3, the Company may pursue
and enforce all rights and remedies it may have against each Member under
this Section, including instituting a lawsuit to collect such contribution with
interest from the date such contribution was required to be paid under this Section calculated
at a rate equal to the Base Rate plus four percentage points per annum,
compounded annually (but not in excess of the highest rate per annum permitted
by law).

 

(e)                                  The
Members acknowledge that they are severally obligated to fund their respective
shares of any Tax Benefit Clawback Obligation to IBGI, and that IBGI is a third
party beneficiary of such several obligations.

 

ARTICLE V.

MANAGEMENT

 

Section 5.1.                                   Authority
of the Managing Member. The Managing Member shall not permit the Company to
engage in any activity which substantially changes the nature of the Company’s
business as a holding company for interests in IBG LLC or enter in any material
agreement(s) on behalf of the Company, other than the Exchange Agreement, which
would in the aggregate, during any twelve (12) month period, result in a
transfer or commitment to transfer over twenty percent (20%) of the interests
in IBG LLC held by the Company, without the written consent of holders of a
majority of the Voting Shares. Subject to the foregoing and the provisions of Section 5.3,
the Managing Member shall manage the business of the Company and shall have all
of the rights and powers which may be possessed by a managing member under
the Act including, without limitation, the right and power to:

 

11

 

(a)                                  acquire
by purchase, lease or otherwise any real or personal property which may be
necessary, convenient, or incidental to the accomplishment of the purposes of
the Company;

 

(b)                                 sell
or exchange interests of the Company in IBG LLC to IBGI in exchange for cash or
IBGI Common Stock and deal in any other Company assets whether real property or
personal property;

 

(c)                                  operate,
maintain, finance, improve, construct, own, grant options with respect to,
sell, convey, assign, mortgage and lease any real estate and any personal
property necessary, convenient, or incidental to the accomplishment of the
purposes of the Company;

 

(d)                                 execute
any and all agreements, contracts, documents, certifications, and instruments
necessary or convenient in connection with the management, maintenance and
operation of Property or in connection with managing the affairs of the
Company, including executing amendments to the Agreement and the Certificate of
Formation in accordance with the terms of the Agreement pursuant to any power
of attorney granted by the Members to the Managing Member;

 

(e)                                  borrow
money and issue evidences of indebtedness necessary, convenient or incidental
to the accomplishment of the purposes of the Company, and secure the same by
mortgage, pledge, or other lien on any Property;

 

(f)                                    execute,
in furtherance of any or all of the purposes of the Company, any deed, lease,
mortgage, deed of trust, mortgage note, promissory note, bill of sale, contract
or other instrument purporting to convey or encumber any or all of the
Property;

 

(g)                                 prepay
in whole or in part, refinance, recast, increase, modify or extend any
liabilities affecting the Property and in connection therewith execute any
extensions or renewals of encumbrances on any or all of the Property;

 

(h)                                 care
for and distribute funds to the Members by way of cash, income, return of
capital or otherwise, all in accordance with the provisions of this Agreement,
and perform all matters in furtherance of the objectives of the Company or
this Agreement;

 

(i)                                     appoint
officers and agents of the Company and delegate to such Persons authority
granted to the Managing Member hereunder;

 

(j)                                     contract
on behalf of the Company for the employment and services of employees and/or
independent contractors, such as lawyers, accountants, and Members, and
delegate to such Persons the duty to manage or supervise any of the assets or
operations of the Company, and enter into agreements with respect to their
activities on behalf of the Company;

 

(k)                                  engage
in any kind of activity and perform and carry out contracts of any kind
(including contracts of insurance covering risks to Property and Managing
Member’s liability) necessary or incidental to, or in connection with, the
accomplishment of the purposes of the Company, as may be lawfully carried
on or performed by a limited liability company under the laws of each state in
which the Company is then formed or qualified;

 

12

 

(l)                                     vote
securities held by the Company;

 

(m)                               make
any and all elections for federal, state and local tax purposes including,
without limitation, any election, if permitted by applicable law: (i) to
adjust the basis of Property pursuant to Code Sections 754, 734(b), and 743(b),
or comparable provisions of state or local law, in connection with transfers of
Interests and Company distributions (which election shall be made as provided
in Section 6.5 of this Agreement); (ii) to extend the statute of
limitations for assessment of tax deficiencies against the Members with respect
to adjustments to the Company’s federal, state, or local tax returns; and (iii) to
represent the Company and the Members before taxing authorities or courts of
competent jurisdiction in tax matters affecting the Company and the Members in
their capacities as Members and to execute any agreements or other documents
relating to or affecting such tax matters, including agreements or other
documents that bind the Members with respect to such tax matters or otherwise
affect the rights of the Company or the Members;

 

(n)                                 take,
or refrain from taking, all actions not expressly proscribed or limited by this
Agreement as may be necessary or appropriate to accomplish the purposes of
the Company;

 

(o)                                 institute,
prosecute, defend, settle, compromise, and dismiss lawsuits or other judicial
or administrative proceedings brought on or in behalf of, or against, the
Company or the Members in connection with activities arising out of, connected
with, or incidental to this Agreement, and to engage counsel or others in
connection therewith; and

 

(p)                                 acquire
and enter into any contract of insurance which the Managing Member reasonably
deems necessary and proper for the protection of the Company, for the
conservation of any asset of the Company, or for any purpose beneficial to the
Company.

 

Section 5.2.                                   Right
to Rely upon Managing Member. Any Person dealing with the Company may rely
(without duty of further inquiry) upon a certificate signed by the Managing
Member as to:

 

(a)                                  the
identity of the Managing Member or any other Member;

 

(b)                                 the
existence or nonexistence of any fact or facts which constitute a condition
precedent to acts by the Managing Member or which are in any other manner
germane to the affairs of the Company;

 

(c)                                  the
Members who are authorized to execute and deliver any instrument or document of
the Company; or

 

(d)                                 any
act or failure to act by the Company or any other matter whatsoever involving
the Company or any Member.

 

Section 5.3.                                   Restrictions
on Authority of Managing Members. Except with the written consent of all of
the Members, the Managing Member shall not have the authority to:

 

(a)                                  do
any act in contravention of this Agreement; or

 

13

 

(b)                                 knowingly
perform any act that would subject any Member to personal liability for
the obligations of the Company in any jurisdiction.

 

Section 5.4.                                   Duties
and Obligations of the Managing Member. The Managing Member shall:

 

(a)                                  take
all actions which may be necessary or appropriate (i) for the
continuation of the Company’s valid existence as a limited liability company
under the laws of the State of Delaware (and of each other jurisdiction in
which such existence is necessary to protect the limited liability of the
Members or to enable the Company to conduct the business in which it is
engaged) and (ii) for the accomplishment of the Company’s purposes,
including the acquisition, development, maintenance, preservation and operation
of Property in accordance with the provisions of this Agreement and applicable
laws and regulations;

 

(b)                                 devote
to the Company such time as may be necessary for the proper performance of
all duties hereunder in the discretion of the Managing Member;

 

(c)                                  be
under a fiduciary duty to conduct the affairs of the Company in the best
interests of the Company and of the Members, including the safekeeping and use
of all of the Property and the use thereof for the exclusive benefit of the
Company;

 

(d)                                 use
its reasonable efforts to cause the Company to be formed, reformed, qualified
or registered under assumed or fictitious name statutes or similar laws in any
state or country in which the Company owns property or transacts business if
such formation, reformation, qualification or registration is necessary in
order to protect the limited liability of the Members or to permit the Company
lawfully to own property or transact business; and

 

(e)                                  manage
and control the affairs of the Company and in doing so use his reasonable
efforts to carry out the purpose of the Company for the benefit of all of the
Members and in exercising his powers, recognize his fiduciary responsibility to
the Company.

 

Section 5.5.                                   Compensation
and Expenses.

 

(a)                                  No
Member shall receive any salary, fee or draw for services rendered to or on
behalf of the Company, except as the Managing Member shall determine.

 

(b)                                 The
Managing Member may charge the Company for expenses reasonably incurred in
connection with the Company’s business.

 

Section 5.6.                                   Signatures;
Power of Attorney. Subject to the limitations imposed by Section 5.1,
the signature of the Managing Member shall be necessary and sufficient to
convey title to any real property owned by the Company or to execute any
promissory notes, trust deeds, mortgages or other instruments of hypothecation.
All of the Members agree that a copy of appropriate provisions of this
Agreement may be shown to the appropriate parties in order to confirm the
same, and further agree that the signature of the Managing Member shall be
sufficient to execute any documents necessary to effectuate this or any other
provision of this Agreement. All of the Members do hereby appoint the Managing
Member as their attorney-in-fact for the execution of any or all of the
documents described herein.

 

14

 

ARTICLE VI.

RECORDS AND ACCOUNTING

 

Section 6.1.                                   Records
and Accounting. Proper and complete records and books of account of the
business of the Company shall be maintained at the Company’s principal place of
business. All books and records of the Company shall be kept in accordance with
Generally Accepted Accounting Principles in the United States (U.S. “GAAP”).

 

Section 6.2.                                   Tax
Information. Prior to the day on which the Company’s tax return for such
fiscal year is filed, the Managing Member shall cause to be delivered to each
Person who was a Member at any time during such fiscal year all information
necessary for the preparation of such Member’s federal income tax return,
including a statement showing such Member’s distributive share of the Company’s
income, gains, losses, deductions, credits and tax preferences for the taxable
year of the Company ending within or with its taxable year for federal income
tax purposes, and the amount of any distribution made to or for the account of
such Member pursuant to this Agreement; provided, however, that within ninety
(90) days after the end of each fiscal year, the Managing Member shall cause to
be delivered to each such Person an estimate of all such information.

 

Section 6.3.                                   Tax
Returns. The Managing Member shall cause all required federal and state and
local information returns for the Company to be prepared and timely filed with
the appropriate authorities.

 

Section 6.4.                                   Accounting
Decisions. All decisions as to accounting principles used for financial
reporting and tax accounting purposes shall be made by the Managing Member on a
basis that is acceptable to the Company’s accountants notwithstanding any other
provisions to the contrary contained in this Agreement.

 

Section 6.5.                                   Tax
Elections. The Managing Member may, from time to time, make the tax
elections it deems necessary, in its sole discretion to carry out the business
of the Company or the purposes of this Agreement; provided that the Company
shall make the election authorized by Section 754 of the Code with its
initial federal income tax return.

 

Section 6.6.                                   Fiscal
Year. The fiscal year of the Company shall be the calendar year.

 

Section 6.7.                                   Tax
Matters. The Managing Member shall act for the Company as “tax matters
partner” for purposes of Section 6231(a)(7) of the Code.

 

ARTICLE VII.

AMENDMENTS; MEETINGS; VOTING

 

Section 7.1.                                   Amendment.
Except as otherwise required by law or as provided elsewhere in this Agreement,
this Agreement may be amended in any respect only with the vote of a
two-thirds (2/3) majority of the holders of the Voting Shares.

 

15

 

Section 7.2.                                   Amendment
to Certificate of Formation. In the event this Agreement shall be amended
pursuant to this Article VII, the Managing Member shall amend the
Certificate of Formation to reflect such change if the Managing Member deems
such amendment to be necessary.

 

Section 7.3.                                   Meetings
of Members. Meetings for purposes of voting shall be called by the Managing
Member who shall be required to give written notice thereof to all Members
entitled to vote at such meeting no less than ten (10) days and no more
than thirty (30) days prior to the date of such meeting. Any such notice shall
state briefly the purpose of the meeting, which shall be held at a reasonable
time and at the principal office of the Company or such other location as shall
be stated in the notice.

 

Section 7.4.                                   Proxy
of Member. Each Member may authorize any Person or Persons to act for
him by proxy on all matters in which a Member is entitled to participate,
including waiving notice of any meeting or voting or participating at a meeting.
Every proxy must be signed by the Member or his attorney-in-fact. Every proxy
shall be revocable at the pleasure of the Member executing it.

 

Section 7.5.                                   Consent
or Voting.

 

(a)                                  All
voting shall be based on the aggregate number of Voting Shares outstanding and
not the number of holders of such Shares.

 

(b)                                 In
the event that the consent or vote of the holders of Voting Shares shall be
required for any action hereunder and no specific proportion is stated herein,
the affirmative vote of holders of more than fifty percent (50%) of the total
Voting Shares outstanding shall be required for such action.

 

Section 7.6.                                   Conversion
of Series B Shares into Voting Shares. If at any time Thomas Peterffy,
his spouse, descendants, spouses of descendants, siblings, ancestors and the
spouses and descendants of his siblings, or one or more trusts established for
the benefit of any one or more of any of the foregoing, in the aggregate own
directly or through an entity (taking into account only their proportionate
share of the Shares owned by an entity based upon the equity of any such entity
owned by one or more of the foregoing) less than fifty percent (50%) of the
total outstanding Shares of the Company, then at such time all Series B
Shares shall automatically become Voting Shares.

 

ARTICLE VIII.

PROVISIONS RELATING TO MEMBERS

 

Section 8.1.                                   Investment
Representation. Each Member represents and warrants that (i) his
Interest is acquired for investment and not with a view to the resale or other
distribution thereof, (ii) he understands that none of the Interests have
been registered under the Securities Act of 1933 or any similar legislation in
any other country or jurisdiction, and that there may be no market for his
Interest, and (iii) he is acquiring his Interest without the benefit of
any representation, warranty, or other assurance from any other Member or
representative of the Company with respect to the financial condition or
prospects of the Company.

 

16

 

Section 8.2.                                   No
Assurance of Employment. Each Member who is an employee of IBG LLC or one
of its Affiliates fully understands that nothing herein modifies the terms of
the Member’s employment with IBG LLC or the Company, including IBG LLC’s or the
Company’s right, which such Member hereby confirms, to terminate such
employment at will.

 

Section 8.3.                                   Restrictions
on Member’s Transfer of an Interest.

 

(a)                                  Except
as otherwise provided in this Section 8.3, in Section 8.4 and in Section 8.5,
no Member may Transfer all or any portion of or any rights or entitlements
deriving from any Interest in the Company at any time or howsoever acquired
without (i) the written consent of the Managing Member, which consent may be
denied for any reason whatsoever, and (ii) the approval of the holders of
the Voting Shares. Upon such consent and approval, any Voting Shares owned by a
Member shall upon Transfer inure to the benefit of the transferee, who shall
subsequently have the right to cast any votes with respect to such Voting
Shares.

 

(b)                                 Thomas
Peterffy’s Voting Shares, together with the rights associated therewith, shall
inure to the benefit of those to whom he has made a voluntary Transfer of such
Voting Shares without the necessity of the consent of the Managing Member or
any vote or approval of the holders of Voting Shares.

 

(c)                                  Each
Member who has been granted rights pursuant to the Exchange Agreement may exercise
such rights in accordance with their terms with its terms.

 

(d)                                 The
forfeiture of Series C Shares and Tax Benefit Shares to the Company upon
the violation by the holder thereof of the restrictions described in Sections 8.7
and 8.8 shall not constitute a Transfer for purposes hereof.

 

Section 8.4.                                   Member’s
Elective Redemption.

 

(a)                                  Pursuant
to the Exchange Agreement, each Member has been granted the right to cause the
Company to redeem such Member’s Common Shares on the schedule and terms
specified in such agreement and otherwise in accordance with this Agreement.

 

(b)                                 Using
the request form attached to the Exchange Agreement and consistent with
the schedule of eligibility for redemption specified therein, each Member
shall be entitled to require the redemption of the Series B Shares or Series C
Shares held by such Member by giving written notice to the Company specifying
the number of Shares eligible for redemption that are to be redeemed (a “Redemption
Request”). Any such Redemption Request shall be delivered to the Company no
less than 60 days nor more than 90 days before a General Redemption Date. The
redemption of the Shares subject of the Redemption Request shall be at a
purchase price equal to the proceeds of sale of the shares of IBGI Common Stock
sold by IBGI in order to fund the Company’s redemption pursuant to this Section 8.4(b),
less any applicable underwriting discounts, in accordance with the procedures
established in the Exchange Agreement. Such purchase price shall be payable on
such terms and conditions as are set forth in paragraph (d) of this
Section.

 

17

 

(c)                                  Any
Person who becomes the holder of or otherwise entitled to any Interest of a
Member, whether by reason of death of the Member, any judicial process or
otherwise, shall succeed to the rights granted the Members to require the
redemption of their Shares described in paragraph (b) of this Section 8.4.

 

(d)                                 The
redemption of Shares subject to a Redemption Request shall occur on a date specified
by the Company with notice to the applicable Member within the later of (i) 30
days following the applicable General Redemption Date, or (ii) 10 business
days after completion of the public offering of IBGI Common Stock, the proceeds
from which will fund the redemption; provided that, if the redemption is to be
funded by a redemption by IBG LLC of a portion of its shares held by the
Company, the date specified by the Company for redemption of the Members Common
Shares shall be within the period described in clause (i). From and after the
date of redemption specified by the Company, the Member or other holder of the
Shares subject thereof shall cease to be the holder of such Shares and shall
have rights that are limited to entitlement to the payment(s) provided for in
this paragraph. The purchase price of Shares redeemed pursuant to Section 8.4(b) shall
be paid, in cash and without interest, on the date of redemption. The Shares so
redeemed by and sold to the Company shall be free and clear of all liens, charges
and encumbrances, other than those created by this Agreement.

 

Section 8.5.                                   Company’s
Optional Redemption of Interests.

 

(a)                                  The
Company has the unilateral right to redeem each Member’s Series B Shares and
Series C Shares in accordance with this Agreement.

 

(b)                                 The
Company (with the prior approval of the board of directors of IBGI) may at any
time demand to buy any or all Series B Shares or Series C Shares held
by any Member by giving written notice of such intent in accordance with the
mandatory exchange provisions of the Exchange Agreement (a “Redemption Notice”)
to such Member, and the Member shall sell, and shall be deemed to have sold, to
the Company, the Shares so demanded by the Company from the Member, on a date specified
in the Redemption Notice. The
purchase price per Share shall be equal to: (x) in the case of redemptions
financed through public offerings of shares of IBGI Common Stock, the Public
Offering Redemption Price (as defined in the Exchange Agreement), and (y) in
the case of redemptions financed using cash on hand at IBG LLC in accordance
with Section 4.3(c) of the Exchange Agreement, the Stock Price (as
defined in the Exchange Agreement) of the IBGI Common Stock as of the date of
redemption. Such purchase price shall be payable on such terms and
conditions as are set forth in paragraph (d) of this Section.

 

(c)                                  Any
Person who becomes the holder of or otherwise entitled to any Interest of a
Member, whether by reason of death of the Member, any judicial process or
otherwise, shall be subject to the rights granted the Company to purchase such
Interest described in paragraph (b) of this Section 8.5.

 

(d)                                 From
and after the date of sale specified in the Redemption Notice given by the
Company under this Section 8.5, the Member or other holder of the Shares
subject thereof shall cease to be the holder of such Shares and shall have
rights that are limited to entitlement to the payment(s) provided for in this
paragraph. The purchase price of Shares redeemed pursuant to Section 8.5(b) shall
be paid, in cash and without interest, (x) in the case of redemptions financed through public offerings of
shares of IBGI Common Stock, concurrently with the

 

18

 

settlement date for such corresponding public offerings, and (y) in the
case of redemptions financed using cash on hand at IBG LLC in accordance with Section 4.3(c) of
the Exchange Agreement, no less than 15 nor more than 45 days following
the date of the Redemption Notice. The Shares so purchased by and sold to the
Company shall be free and clear of all liens, charges and encumbrances, other
than those created by this Agreement.

 

Section 8.6.                                   Documentation
of Transfer of Interests. If any Transfer of a Member’s Interest is
required or permitted pursuant to the terms of this Article, such Transfer
shall, after receipt by the Managing Member of all required documentation
thereof, be made by a proper entry on the books of the Company. Any Transfer
that is required pursuant to the terms of this Agreement may be effected
by the Managing Member without further action by the transferring Member.

 

Section 8.7.                                   Confidentiality;
Non-Compete. Each Member who is a current or former employee of
IBG LLC or any of its Affiliates acknowledges that violation of any of the
following agreements will result in: (x) the forfeiture to the Company of any Series C
Shares that remain subject to restriction which are then held by such Member,
(y) the forfeiture to the Company of any Tax Benefit Shares, and all associated
rights to distributions, then held by such Member, and (z) the payment of
liquidated damages by such Member to IBG LLC in the amount set forth in a
letter agreement by and between the Company and such Member.

 

(a)                                  The
Member understands that as an employee of IBG LLC or one of its Affiliates, the
Member has and will have access to IBG LLC’s or its Affiliates’ training with
respect to their proprietary data which is unique and has been developed at
great cost, and which includes, but is in no way limited to, trade secrets,
business plans, computer skills, algorithms, software, source codes, data
files, programs and know-how, and financial information, and that such
proprietary data continues to be developed and may not become outdated. The
Member agrees to maintain the confidentiality of such proprietary data during
and after termination of employment and not to reveal it to third parties, nor
shall the Member use such proprietary data for the Member’s own benefit or the
benefit of anyone other than IBG LLC or its Affiliates, and the Member accepts
such contractual obligations and all other fiduciary obligations attendant with
receipt of such proprietary data, even though these obligations will impede the
Member’s ability upon leaving IBG LLC’s employ to enter into competition or be
employed or otherwise associated with one who is in competition with IBG LLC or
its Affiliates.

 

(b)                                 The
Member further understands that, as an employee of IBG LLC or its Affiliates, and
as a consultant to the Company or its Affiliates, he or she will make
contributions to the value of IBG LLC and its Affiliates. Such contributions
include development and enhancement of processes, inventions, patents,
discoveries, copyrights, designs, programs, trade secrets and other intangible
rights developed, conceived or enhanced by the Member (whether or not
patentable or copyrightable), either solely or jointly with others, during the
course of employment, or with the use of the time, materials or facilities of
IBG LLC or its Affiliates or otherwise relating to IBG LLC’s or its Affiliates’
businesses or operations. Such contributions shall be solely the property of
IBG LLC or its Affiliates and the Member shall have no proprietary rights in
such contributions, and shall be entitled to no other compensation for them
other than as provided herein and normal salary and benefits.

 

19

 

The Member shall disclose
such contributions and related documentation promptly to IBG LLC or its
Affiliates; and shall not disclose them to third-parties. The Member assigns
all right, title and interest in such contributions to IBG LLC or its
Affiliates; and agrees to assist IBG LLC or its Affiliates in obtaining all
patent, copyright or trade secret protection to the extent available at the
request of IBG LLC or its Affiliates. Upon termination of employment, and
otherwise at the request of IBG LLC or its Affiliates, the Member shall
promptly return to IBG LLC or its Affiliates all property owned by IBG LLC or
its Affiliates, including, but not limited to, all equipment, keys, credit
cards, building passes, all copies of documents, data, papers, reports,
manuals, computer programs, software and other material and other physical
embodiments of the foregoing (regardless of form or medium) which is or may contain,
relate to or be derived from IBG LLC’s or its Affiliates’ property.

 

(c)                                  So
that IBG LLC may avail itself of the Member’s special skills and
experience with IBG LLC, upon termination of employment with IBG LLC or its
Affiliates, the Member shall personally consult for the Company or its
Affiliates as required by IBG LLC or its Affiliates for a total of five (5) years:
for one (1) year from the date of such termination for a maximum of three (3) hours
per week and for a maximum of two (2) hours per week in each of the
succeeding four (4) years.

 

(d)                                 The
Member understands and agrees that, in order to effectively consult with IBG
LLC or its Affiliates, the Member shall not engage or assist others to engage
in competition with IBG LLC or its Affiliates; provided that any Member
whose employment with IBG LLC or any of its Affiliates has been terminated
without cause (as determined by the Managing Member) shall not be subject to
the requirements of this Section 8.7(d). Competition for this purpose means
directly or indirectly engaging in anywhere in the world one or more of, or
being employed by or associated in any capacity with any entity or person
located anywhere in the world which or who engages in one or more of the
businesses:  (i) of buying, selling,
investing or otherwise trading in stocks, bonds, securities, financial
instruments, options, derivative products, indices, commodities, currencies and
similar products in any pit, ring or other trading arena, on any exchange,
board of trade, or on any electronic, computer or other device in or upon which
trading or investing is conducted by IBG LLC or its Affiliates, or in or upon
which IBG LLC or its Affiliates plan to commence trading or investing within
six (6) months of termination of employment, or off-exchange with IBG LLC
or its Affiliates; or (ii) of providing advice or services of any nature,
including, but not limited to hardware, software or programming services of any
kind, for use in any such business or businesses.

 

Section 8.8.                                   Termination
of Employment. If at any time the Member’s employment with the Company or
its Affiliates shall terminate for any reason (other than such Member’s death,
or as determined by the Managing Member, such Member’s disability, retirement
or termination without cause), (x) any Series C Shares held by the Member
on the date of such termination that remain subject to restriction shall be forfeited
to the Company, and (y) any Tax Benefit Shares and all associated rights
to distributions held by such Member on the date of such termination shall be
forfeited to the Company.

 

Section 8.9.                                   Modifications
of Agreement. Sections 8.7 and 8.8 hereof may be waived in whole or in
part, but only by written consent of the Managing Member, with the approval of
the holders of the Voting Shares. Each Member represents that the restrictions
with respect to Series C Shares and Tax Benefit Shares of the Company are
fully understood.

 

20

 

Section 8.10.                             Consent
to Specific Performance. The Members, in addition to all of the remedies
allowed by law for the enforcement of this Agreement, expressly consent to an
order for its specific performance in any court having jurisdiction with
respect to the Company’s rights contained in this Article VIII, and in
connection therewith, acknowledge that the Company will be irreparably injured
by a violation of this Article VIII and shall, therefore, be entitled to
injunctive relief pending a final determination of any controversy arising
hereunder.

 

ARTICLE IX.

MANAGING MEMBER

 

Section 9.1.                                   Appointment
of Managing Member. By their execution of this Agreement, the Members
holding Voting Shares appoint Thomas Peterffy as Managing Member.

 

Section 9.2.                                   Permitted
Transfers. The Managing Member may transfer all or any portion of his
or its Interest to any Person only with the consent of the holders of Voting
Shares.

 

Section 9.3.                                   Resignation
of Managing Member. Upon ninety (90) days prior written notice, a Managing
Member may resign. In the event of the resignation of the Managing Member,
a successor Managing Member shall be appointed as provided in Section 9.5
below.

 

Section 9.4.                                   Removal
of Managing Member. The Managing Member may be removed, with or
without cause, by an affirmative vote for removal of the holders of a two
thirds majority of the Voting Shares.

 

Section 9.5.                                   Successor
Managing Member. If a Managing Member ceases to act as Managing Member, a
successor Managing Member shall be selected by the plurality vote of the
holders of Voting Shares. The successor Managing Member shall become a Managing
Member upon his written acceptance of the appointment and written agreement to
be bound as a Managing Member under the terms of this Agreement. In the event a
successor Managing Member is designated and accepts the designation, the
successor Managing Member shall assume all the duties and obligations of the
predecessor Managing Member set forth in this Agreement.

 

Section 9.6.                                   Rights
of Former Managing Member.

 

(a)                                  The
resignation or removal of a Managing Member shall not affect such Managing
Member’s right to reimbursement for expenses incurred or repayment of loans
made by such former Managing Member to the Company in accordance with the
provisions of this Agreement.

 

(b)                                 A
resigned or removed Managing Member (which term, for purposes of this section,
shall include his or its successors and assigns) shall continue to have the
rights and obligations of a Member with respect to his or its continuing
Interest, if any.

 

21

 

ARTICLE X.

ADMISSION AND WITHDRAWAL OF MEMBERS

 

Section 10.1.                             Admission.
Any Person who acquires an Interest by Transfer from a Member shall be admitted
as a Member of the Company upon the consent of the Managing Member and the
approval of the holders of the Voting Shares. Any person or entity to be
admitted as a Member shall execute such documents and instruments, including an
agreement to be bound by the terms of this Agreement, as the Managing Member
shall require. No Person may acquire a Voting Share except as provided in Section 8.2
hereof.

 

Section 10.2.                             Withdrawal
and Dissociation. Except upon the Transfer of his entire Interest in
accordance with Article VIII, no Member shall be permitted to withdraw or
resign from the Company prior to the dissolution and winding up of the Company
without the consent of the Managing Member and approval of the holders of the
Voting Shares.

 

ARTICLE XI.

MERGER, CONSOLIDATION OR SALE;

DISSOLUTION AND LIQUIDATION

 

Section 11.1.                             Merger,
Consolidation or Sale. The Company may enter into an agreement of
merger, consolidation, or sale or other transfer of substantially all the
assets of the Company upon the decision of the Managing Member, with the
approval of the holders of the Voting Shares.

 

Section 11.2.                             Dissolution.
The Company shall continue until the occurrence of any one or more of the
following events:

 

(a)                                  such
time that the holders of a majority of the Voting Shares vote to dissolve the
Company; or

 

(b)                                 upon
the bankruptcy, death, insanity, retirement, resignation, dissolution,
expulsion, incapacity or withdrawal of any Managing Member, or upon the
occurrence of any event which, under the provisions of the Act, would cause a
dissolution; provided, however, that upon such an occurrence, no dissolution
shall occur if the holders of a majority of the Voting Shares, at such time as
they deem appropriate, vote to continue the business of the Company and, if
there is no Managing Member, appoint a successor Managing Member in accordance
with Section 9.5.

 

No Member has the right, on account of any dissolution
of the type described in this Section 11.2, to have the Company’s assets
applied to discharge its liabilities or to have the value of his or her
Interest ascertained or paid for.

 

Section 11.3.                             Winding
Up of Affairs. Upon the dissolution of the Company in accordance with the
provisions of this Agreement, the Company shall immediately commence winding up
its affairs. The winding-up of the affairs of the Company and the distribution
of its assets shall be conducted exclusively by the Liquidator, and the
Liquidator is hereby authorized

 

22

 

to do all acts authorized
by law for these purposes. Without limiting the generality of the foregoing,
the Liquidator, in carrying out such winding-up and distribution, shall have
full power and authority to sell all or any of the Company assets or to
distribute the same in kind to the Members. Any assets distributed in kind
shall be subject to all operating agreements or other agreements relating
thereto which shall survive the termination of the Company.

 

Section 11.4.                             Liquidating
Distributions.

 

(a)                                  Following
dissolution of the Company and incident to the winding up of the Company’s
affairs, all of the Company’s debts and liabilities shall be discharged in the
order of priority as provided by law. The Company’s entitlement under the Tax
Receivable Agreement to Tax Benefit Payments shall be allocated among and
assigned to the holders of the Tax Benefit Shares in complete cancellation of
such Shares. The Fair Market Value of the remaining assets of the Company shall
then be determined. Thereupon, the assets of the Company shall be distributed
to the Members in proportion to the number of Shares held by each Member in
relation to the aggregate number of outstanding Shares. For purposes of such
allocation only, it shall be assumed that the assets of the Company other than
cash had been sold for an amount equal to their Fair Market Value as determined
above, and that the income, gain or loss from such sale had been allocated in
accordance with Article III. Each Member shall receive his share of the
assets in cash or in kind, and the proportion of such share that is received in
cash may vary from Member to Member, all as the Liquidator may decide.
Except as provided below, if such distributions are insufficient to return to
any Member the full amount of his Capital Contributions, he shall have no
recourse against the Company or any other Member.

 

(b)                                 The
proceeds of liquidation and any unliquidated assets of the Company shall be
distributed as provided in Section 11.4(a). Any reserves established by
the Liquidator in the course of such distribution shall be held for so long as
the Liquidator shall deem necessary in a special account established for the
purpose of paying contingent or unforeseen liabilities or obligations. At the
time the Liquidator determines that there is no longer a need for the reserve,
such reserve shall be distributed in the order of priority established in Section 11.4(a).
The distribution of the reserve shall commence where the initial distribution
of the assets of the Company ended. For purposes of this Section 11.4,
expenses of dissolution and liquidation shall be treated as debts and
obligations of the Company.

 

ARTICLE XII.

POWER OF ATTORNEY

 

Section 12.1.                             Managing
Member as Attorney-In-Fact. Each Member hereby makes, constitutes, and
appoints the Managing Member and each successor Managing Member, with full
power of substitution and resubstitution, his true and lawful attorney-in-fact
for him and in his name, place, and stead and for his use and benefit, to sign,
execute, certify, acknowledge, swear to, file, and record (a) this
Agreement and all agreements, certificates, instruments, and other documents
amending or changing this Agreement which have been adopted as provided herein
and which the Managing Member may deem necessary, desirable, or
appropriate including, without limitation, amendments or changes to reflect (i) the
exercise by any Managing Member of any power granted to him under this
Agreement; and (ii) the disposition by any Member of his

 

23

 

Interest in the Company;
and (b) any certificates, instruments, and documents as may be
required by, or may be appropriate under, the laws of any state or
jurisdiction in which the Company is doing or intends to do business. Each
Member authorizes each such attorney-in-fact to take any further action which
such attorney-in-fact shall consider necessary or advisable in connection with
any of the foregoing, hereby giving each such attorney-in-fact full power and
authority to do and perform each and every act or thing whatsoever
requisite or advisable to be done in connection with the foregoing as fully as
such Member might or could do personally, and hereby ratifying and confirming
all that any such attorney-in-fact shall lawfully do or cause to be done by
virtue thereof or hereof.

 

Section 12.2.                             Nature
as Special Power. The power of attorney granted pursuant to this Article XII:

 

(a)                                  is
a special power of attorney coupled with an Interest;

 

(b)                                 may be
exercised by any such attorney-in-fact by listing the Members executing any
agreement, certificate, instrument, or other document with the single signature
of any such attorney-in-fact acting as attorney-in-fact for such Members; and

 

(c)                                  shall
survive the death, disability, legal incapacity, bankruptcy, insolvency,
dissolution, or cessation of existence of a Member and shall survive the
delivery of an assignment by a Member of the whole or a portion of his Interest
in the Company.

 

ARTICLE XIII.

MISCELLANEOUS

 

Section 13.1.                             Notices.
All notices, consents, approvals, requests, demands or other communications (“notices”)
which any of the parties to this Agreement may desire to be required to
give hereunder, shall be in writing and shall be deemed properly given if (i) hand
delivered, (ii) sent by private or public mail carrier which provides
evidence of delivery, (iii) sent by United States, certified or registered
mail, postage prepaid, return receipt requested, (iv) sent by facsimile
transmission, or (v) sent by electronic mail, in each case addressed as
follows:

 

(a)                                  to
the Company, or the Managing Member, at the principal place of business of the
Company or to such other addresses as may be designated by the Managing
Member by notice to all Members pursuant to the terms of this Section; and

 

(b)                                 to
Members at the same address set forth in Schedule A or to such other
addresses as may be designated by the respective Members by notice to the
Company.

 

Any distribution made, or notice given, to a Member at
his last known address as shown on the records of the Company shall be
considered effective three (3) days after deposit in any post office or
branch post office, regularly maintained by the United States government and
shall completely satisfy the obligations of the Company hereunder in respect of
such distribution or notice. Any notice to be given by any Member may be
given by counsel or attorney-in-fact for that Member.

 

24

 

Section 13.2.                             Binding
Effect. Except as otherwise provided in this Agreement, every covenant,
term, and provision of this Agreement shall be binding upon and inure to the
benefit of the Members and their respective heirs, legatees, legal
representatives, successors, transferees, and assigns, and shall inure to the
benefit of the Company, its successors and assigns.

 

Section 13.3.                             Incorporation
by Reference. Every exhibit, schedule, and other appendix attached to this
Agreement and referred to herein is hereby incorporated in this Agreement by
reference.

 

Section 13.4.                             Sole
and Absolute Discretion. Except as otherwise provided in this Agreement,
all actions which the Managing Member may take and all determinations
which any Managing Member may make pursuant to this Agreement may be
taken and made at the sole and absolute discretion of such Managing Member. In
the event there shall be more than one Managing Member, all such actions and
determinations shall be taken and made by the unanimous vote of all Managing
Members.

 

Section 13.5.                             Independent
Activities. Thomas Peterffy may, notwithstanding this Agreement, engage in
whatever activities he chooses, whether the same are competitive with the
Company or otherwise, without having or incurring any obligation to offer any
interest in such activities to the Company or any Member. As a material part of
the consideration for the execution of this Agreement by each Member, each
Member hereby waives, relinquishes, and renounces any such right or claim of
participation.

 

Section 13.6.                             Non-Arbitrability.
Notwithstanding any other provision of this Agreement or any rules or
regulations of any regulatory body, no controversy, claim, or breach arising
out of or relating to this Agreement shall be submitted for settlement to a
panel of arbitrators, and the Members agree that any such disputes shall be
determined only by a court having jurisdiction thereof in accordance with this
Agreement.

 

Section 13.7.                             Further
Action. Each Member, upon the request of the Managing Member, agrees to perform all
further acts and execute, acknowledge, and deliver any documents which may be
reasonably necessary, appropriate, or desirable to carry out the provisions of
this Agreement.

 

Section 13.8.                             No
Other Beneficiaries. Except as provided in Section 4.3(e), the rights
and obligations of the Members under this Agreement are for the exclusive
benefit of the Members, and no creditor or other party having dealings with the
Company shall have any right or claim hereunder.

 

Section 13.9.                             Governing
Law. The laws of the State of Delaware shall govern the validity of this
Agreement, the construction of its terms, and the interpretation of the rights
and duties of the Members. In the event this Agreement is in conflict with any
other agreement among any of the parties hereto, the provisions of this
Agreement shall prevail.

 

Section 13.10.                       Waiver
of Action for Partition. Each of the Members irrevocably waives any right
that he may have to maintain any action for partition with respect to any
of the Property of the Company.

 

25

 

Section 13.11.                       Construction.
Every covenant, term, and provision of this Agreement shall be construed simply
according to its fair meaning and not strictly for or against the Company or
any Member.

 

Section 13.12.                       Headings.
Section and other headings contained in this Agreement are for reference
purposes only and are not intended to describe, interpret, define, or limit the
scope, extent, or intent of this Agreement or any provision hereof.

 

Section 13.13.                       Severability.
Every provision of this Agreement is intended to be severable. If any term or
provision hereof is illegal or invalid for any reason whatsoever, such legality
or invalidity shall not affect the validity or legality of the remainder of
this Agreement.

 

Section 13.14.                       Variation
of Pronouns. All pronouns and any variations thereof shall be deemed to
refer to masculine, feminine, or neuter, singular or plural, as the identity of
Member or Members may require.

 

Section 13.15.                       Counterpart Execution.
This Agreement may be executed in any number of counterparts with the same
effect as if all of the Members had signed the same document. All counterparts
shall be construed together and shall constitute one agreement.

 

26

 

IN WITNESS WHEREOF, the parties have entered into this
Agreement as of the date and year first above set forth.

 

 

[Signatures of the Members of IBG Holdings LLC]

 

 

 

Signature Page to Limited Liability Company
Agreement of IBG Holdings LLC

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