Document:

EXHIBIT
10.13

The CORPORATEplan for
Retirement SM

EXECUTIVE
PLAN

 

Adoption Agreement

 

 

 

IMPORTANT NOTE

This document has not been approved by the
Department of Labor, the Internal Revenue Service or any other governmental
entity. An Adopting Employer must determine whether the plan is subject to the
Federal securities laws and the securities laws of the various states. An
Adopting Employer may not rely on this document to ensure any particular tax
consequences or to ensure that the Plan is “unfunded and maintained primarily
for the purpose of providing deferred compensation to a select group of
management or highly compensated employees” under the Employee Retirement
Income Security Act with respect to the Employer’s particular situation. Fidelity
Management Trust Company, its affiliates and employees cannot provide you with
legal advice in connection with the execution of this document. This document
should be reviewed by the Employer’s attorney prior to execution.

ADOPTION AGREEMENT

ARTICLE 1

1.01            PLAN INFORMATION

	
   

  	
  (a)

  	
  Name of Plan:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  This is the Chicago
  Board Options Exchange Deferred Compensation Plan for Officers
  (the “Plan”).

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  Name of Plan
  Administrator, if not the Employer:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Phone Number:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The Plan Administrator is the agent for service of
  legal process for the Plan.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  Plan Year End is
  December 31.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (d)

  	
  Plan Status (check
  one):

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (1) x

  	
  Effective Date of new Plan: 2/16/2005

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (2)  ̈

  	
  Amendment Effective Date: 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  The original effective date of the Plan: 

  
							

 

1.02                           EMPLOYER

	
  

  	
  (a) The Employer is:

  	
  Chicago Board Options Exchange, Inc.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  	
  400 South LaSalle Street 5th Floor

  	
   

  
	
   

  	
   

  	
   

  	
  Chicago, IL 60605

  	
   

  
	
   

  	
   

  	
  Contact’s Name:

  	
  Deborah Woods

  	
   

  
	
   

  	
   

  	
  Telephone Number:

  	
  312-786-7177

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (1)

  	
  Employer’s Tax Identification Number: 36-2730838

  
	
   

  	
   

  	
  (2)

  	
  Business form of Employer (check one):

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (A)

  	
  x

  	
  Corporation (Other than a Subchapter S corporation)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (B)

  	
   ̈

  	
  Other (e.g., Subchapter S corporation, partnership,
  sole proprietor)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (3)

  	
  Employer’s fiscal year end: 12/31

  
										

 

 1
 

(b)                                 The term “Employer” includes the following Related Employer(s)

(as defined in Section 2.01(a)(24)):

1.03                        COVERAGE

(a)                                 The
following Employees are eligible to participate in the Plan:

(1)                                   ̈                                    Only
those Employees listed in Attachment A will be eligible to participate in the
Plan.

(2)                                  x                                  Only
those Employees in the eligible class described below will be eligible to
participate in the Plan:

Only Officers of the Employer are eligible to participate in the Plan. Individuals
performing officer type services on a consulting, contract or other
self-employed basis, shall not be eligible to participate.

(3)                                   ̈                                    Only
those Employees described in the Board of Directors Resolutions attached hereto
and hereby made a part hereof will be eligible to participate in the Plan.

(b)                                 The
Entry Date(s) shall be (check one):

(1)                                   ̈                                    each
January 1.

(2)                                   ̈                                    each
January 1 and each July l.

(3)                                   ̈                                    each
January 1 and each April 1, July 1 and October 1.

(4)                                  x                                  the
first day of each month.

(5)                                   ̈                                    immediate
upon meeting the eligibility requirements specified in Subsection 1.03(a).

1.04                        COMPENSATION

For
purposes of determining Contributions under the Plan, Compensation shall be as
defined (check (a) or (b) below, as appropriate):

(a)         x          in Section 2.01(a)(8),(check (1) or (2) below, if and as
appropriate)):

(1)                                   ̈                                    but
excluding (check the appropriate box(es)):

(A)                               ̈                                    Overtime
Pay.

(B)                                 ̈                                    Bonuses.

(C)                                 ̈                                    Commissions.

 2
 

(D)                                ̈                                    The
value of a qualified or a non-qualified stock option granted to an Employee by
the Employer to the extent such value is includable in the Employee’s taxable
income.

(E)                                  ̈                                    The
following:

(2)                                  x                                  except
as otherwise provided below:

For purposes of determining contributions under the Plan, Compensation
shall include base compensation and bonuses. Compensation shall specifically
exclude amounts contributed by the Employer under the Senior Executive Cafeteria Plan.

(b)                                  ̈                                    in the                
Plan maintained by the Employer to the extent it is in excess of the limit
imposed under Code Section 401(a)(17).

1.05                        CONTRIBUTIONS

(a)                                 Employee
contributions (Complete all that apply)

(1)                                  x                                  Deferral
Contributions. The Employer shall make a Deferral Contribution in accordance
with, and subject to, Section 4.01 on behalf of each Participant who has an
executed salary reduction agreement in effect with the Employer for the
calendar year (or portion of the calendar year) in question, not to exceed 20%
of Compensation, exclusive of any Bonus.

(2)                                  x                                  Bonus
Contributions. The Employer requires Participants to enter into a special
salary reduction agreement to make Deferral Contributions of any percentage of
Employer paid cash Bonuses, up to 100% of such Bonuses. (The Compensation
definition elected by the Employer in Section 1.04 must include Bonuses if
Bonus contributions are permitted.)

(b)                                  ̈                                    Matching Contributions (Choose (1) or (2) below,
and (3) below, as applicable.)

(1)                                   ̈                                    The
Employer shall make a Matching Contribution on behalf of each Participant in an
amount equal to the following percentage of a Participant’s Deferral
Contributions during the Plan Year (check one):

(A)                               ̈                                    50%

(B)                                 ̈                                    100%

(C)                                 ̈                                          %

 3
 

(D)                                ̈                                    (Tiered
Match)                %
of the first                %
of the Participant’s Compensation contributed to the Plan.

(E)                                  ̈                                    The
percentage declared for the year, if any, by a Board of Directors’ resolution.

(F)                                  ̈                                    Other:

(2)                                   ̈                                    Matching
Contribution Offset. For each Participant who has made 401(k) Deferrals at
least equal to the maximum under Code Section 402(g) or, if less, the maximum
permitted under the Qualified Plan, the Employer shall make a Matching
Contribution for the calendar year equal to (A) minus (B) below:

(A)                              The
401(m) Match that the Participant would have received under the Qualified Plan
for such calendar year on the sum of the Participant’s Deferral Contributions
and the Participant’s 401(k) Deferrals if no limits otherwise imposed by tax
law applied to 401(m) Match and deeming the Participant’s Deferral Contributions
to be 401(k) Deferrals.

(B)                                The
401(m) Match actually allocated to such Participant under the Qualified Plan
for the calendar year.

For purposes of this Section 1.05(b): “Qualified Plan”
means the Plan; “401 (k) Deferrals” means contributions under the Qualified
Plan’s cash or deferred arrangement as defined in Code Section 401(k); and “401
(m) Match” means a matching contribution as defined in Code Section 401(m).

(3)                                   ̈                                    Matching
Contribution Limits (check the appropriate box(es)):

(A)                               ̈                                    Deferral
Contributions in excess of         % of
the Participant’s Compensation for the period in question shall not be
considered for Matching Contributions.

Note:                   If the Employer
elects a percentage limit in (A) above and requests the Trustee to account
separately for matched and unmatched Deferral Contributions, the Matching
Contributions allocated to each Participant must be computed, and the
percentage limit applied, based upon each period.

(B)                                 ̈                                    Matching
Contributions for each Participant for each Plan Year shall be limited to $             

(4)                                  Eligibility
Requirement(s) for Matching Contributions. A Participant who makes Deferral
Contributions during the Plan Year under Section 1.05(a) shall be entitled to
Matching Contributions for that Plan 

 4
 

Year if the Participant
satisfies the following requirement(s) (Check the appropriate box(es). Options
(B) and (C) may not be elected together):

(A)                               ̈                                    Is
employed by the Employer on the last day of the Plan Year.

(B)                                 ̈                                    Earns
at least 500 Hours of Service during the Plan Year.

(C)                                 ̈                                    Earns
at least 1,000 Hours of Service during the Plan Year.

(D)                                ̈                                    Other:                 

(E)                                  ̈                                    No
requirements.

Note:                   If option (A),
(B) or (C) above is selected, then Matching Contributions can only be made by the Employer after the Plan
Year ends. Any Matching Contribution made before Plan Year end shall not be
subject to the eligibility requirements of this Section 1.05(b)(3)).

(c)                                  Employer
Contributions

(1)                                  x                                  Fixed
Employer Contributions. The Employer shall make an Employer Contribution on
behalf of each Participant in an amount determined as described below (check at
least one):

(A)                               ̈                                    In
an amount equal to           %
of each Participant’s Compensation each Plan Year.

(B)                                 ̈                                    In
an amount determined and allocated as described below:

(C)                                 ̈                                    In
an amount equal to (check at least one):

(i.)                                   ̈                                    Any
profit sharing contribution that the Employer would have made on behalf of the
Participant under the following qualified defined contribution plan but for the
limitations imposed by Code Section 401(a)(17):

 

(ii.)                                ̈                                    Any
contribution described in Code Section 401(m) that the Employer would have made
on behalf of the Participant under the following qualified defined contribution
plan but for the limitations imposed by Code Section 401(a)(17):

 5
 

(2)                                   ̈                                    Discretionary
Employer Contributions. The Employer may make Employer Contributions to the
accounts of Participants in any amount, as determined by the Employer in its
sole discretion from time to time, which amount may be zero.

(3)                                  Eligibility
Requirement(s) for Employer Contributions. A Participant shall only be
entitled to Employer Contributions under Section 1.05(c)(1) for a Plan Year if
the Participant satisfies the following requirement(s) (Check the appropriate
box(es). Options (B) and (C) may not be elected together):

(A)                               ̈                                    Is
employed by the Employer on the last day of the Plan Year.

(B)                                 ̈                                    Earns
at least 500 Hours of Service during the Plan Year.

(C)                                 ̈                                    Earns
at least 1,000 Hours of Service during the Plan Year.

(D)                                ̈                                    Other:

(E)                                  ̈                                    No
requirements.

1.06                        DISTRIBUTION
DATES

Distribution from a Participant’s Account pursuant to
Section 8.02 shall begin upon the following date(s) (check either (a) or (b);
check (c), if desired):

(a)                                  ̈                                    Non-Class Year Accounting (complete (1) and (2)).

(1)                                  The
earliest of termination of employment with the Employer (see Plan Section 7.03)
and the following event(s) (check appropriate box(es); if none selected, all
distributions will be upon termination of employment):

(A)                               ̈                                    Attainment
of Normal Retirement Age (as defined in Section 1.07(f)).

(B)                                 ̈                                    Attainment
of Early Retirement Age (as defined in Section 1.07(g)).

(C)                                 ̈                                    The
date on whichthe
Participant becomes disabled (as defined in Section 1.07(h)).

(2)                                  Timing
of distribution (check either (A) or (B)).

(A)                               ̈                                    The
distribution of the Participant’s Account will be begin in the month following
the event described in (a)(1) above, however, if the event is termination of
employment, then 

 6
 

such distribution will
begin as soon as practicable on or after the 1st day of the seventh calendar month
following such separation if the Participant was a Key Employee.

(B)                                 ̈                                    The
distribution of the Participant’s Account will begin as soon as
administratively feasible in the calendar year following distribution event
described in (a)(1) above, provided however, that if the event is termination
of employment, in no event will such distribution begin earlier than the 1st
day of the seventh calendar month following such separation if the Participant
was a Key Employee.

(b)                                 x                                  Class Year Accounting (complete (1) and (2)).

(1)                                  Upon
(check at least one; (A) must be selected if plan has contributions pursuant to
section 1.05(b) or (c)):

(A)                              x                                  Termination
of employment with the Employer (see Plan Section 7.03);provided however, that if the
event is termination of employment, in no event will such distribution begin
earlier than the 1st day of the seventh calendar month following such
separation if the Participant was a Key Employee.

(B)                                x                                  The
date elected by the Participant, pursuant to Plan Section 8.02, and subject to
the restrictions imposed in Plan Section 8.02 with respect to future Deferral
Contributions, inwhich
event such date of distribution must be at least one year after the date such
Deferral Contribution would have been paid to the Participant in cash in the
absence of the election to make the Deferral Contribution.

(2)                                  Timing
of distribution subject to Subsection (b)(1)(A) above (check either (A) or
(B)).

(A)                              x                                  The
Distribution of the Participant’s Account will begin 411 (specify month and
day) following the event described in (b)(1)(B) above.

(B)                                 ̈                                    The
Distribution of the Participant’s Account will begin 4/1 (specify month and
day) of the calendar year following the event described in (b)(l) above.

(c)                                  x                                  Upon a Change of Control in
accordance with Plan Section 7.08.

Note: Internal Revenue Code Section 280G could impose
certain, adverse tax consequences on both Participants and the Employer as a
result of the application

 7
 

of this Section
1.06(c). The Employer should consult with its attorney prior to electing to
apply Section 1.06(c).

1.07                        VESTING
SCHEDULE

(a)                                 The
Participant’s vested percentage in Matching Contributions elected in Section 1.05(b) shall be based upon the
schedule(s) selected below.

(1)                                  x                                  N/A
- No Matching Contributions

(2)                                   ̈                                    100%
Vesting immediately

(3)                                   ̈                                    3
year cliff (see C below)

(4)                                   ̈                                    5
year cliff (see D below)

(5)                                   ̈                                    6
year graduated (see E below)

(6)                                   ̈                                    7
year graduated (see F below)

(7)                                   ̈                                    G below

(8)                                   ̈                                    Other
(Attachment “B”)

	
  Years of

  	
   

  	
   

  	
   

  
	
  Service for

  	
   

  	
  Vesting Schedule

  	
   

  
	
  Vesting

  	
   

  	
  C

  	
   

  	
  D

  	
   

  	
  E

  	
   

  	
  F

  	
   

  	
  G

  	
   

  
	
  0

  	
   

  	
  0

  	
  %

  	
  0

  	
  %

  	
  0

  	
  %

  	
  0

  	
  %

  	
   

  	
   

  
	
  1

  	
   

  	
  0

  	
  %

  	
  0

  	
  %

  	
  0

  	
  %

  	
  0

  	
  %

  	
   

  	
   

  
	
  2

  	
   

  	
  0

  	
  %

  	
  0

  	
  %

  	
  20

  	
  %

  	
  0

  	
  %

  	
   

  	
   

  
	
  3

  	
   

  	
  100

  	
  %

  	
  0

  	
  %

  	
  40

  	
  %

  	
  20

  	
  %

  	
   

  	
   

  
	
  4

  	
   

  	
  100

  	
  %

  	
  0

  	
  %

  	
  60

  	
  %

  	
  40

  	
  %

  	
   

  	
   

  
	
  5

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  	
  80

  	
  %

  	
  60

  	
  %

  	
   

  	
   

  
	
  6

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  	
  100

  	
  %

  	
  80

  	
  %

  	
   

  	
   

  
	
  7

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  	
  100

  	
  %

  	
  100

  	
  %

  	
  100

  	
  %

  

 

(b)                                 The
Participant’s vested percentage in Employer Contributions
elected in Section 1.05(c) shall be based upon the schedule(s) selected
below.

(1)                                  x                                  N/A
- No Employer Contributions

(2)                                   ̈                                    100%
Vesting immediately

(3)                                   ̈                                    3
year cliff (see C below)

(4)                                   ̈                                    5
year cliff (see D below)

(5)                                   ̈                                    6
year graduated (see E below)

(6)                                   ̈                                    7
year graduated (see F below)

(7)                                   ̈                                    G below

(8)                                   ̈                                    Other
(Attachment “B”)

 8
 

 

	
  Years of

  	
   

  	
   

  	
   

  
	
  Service for

  	
   

  	
  Vesting Schedule

  	
   

  
	
  Vesting

  	
   

  	
  C

  	
   

  	
  D

  	
   

  	
  E

  	
   

  	
  F

  	
   

  	
  G

  	
   

  
	
  0

  	
   

  	
  0

  	
  %

  	
  0

  	
  %

  	
  0

  	
  %

  	
  0

  	
  %

  	
   

  	
   

  
	
  1

  	
   

  	
  0

  	
  %

  	
  0

  	
  %

  	
  0

  	
  %

  	
  0

  	
  %

  	
   

  	
   

  
	
  2

  	
   

  	
  0

  	
  %

  	
  0

  	
  %

  	
  20

  	
  %

  	
  0

  	
  %

  	
   

  	
   

  
	
  3

  	
   

  	
  100

  	
  %

  	
  0

  	
  %

  	
  40

  	
  %

  	
  20

  	
  %

  	
   

  	
   

  
	
  4

  	
   

  	
  100

  	
  %

  	
  0

  	
  %

  	
  60

  	
  %

  	
  40

  	
  %

  	
   

  	
   

  
	
  5

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  	
  80

  	
  %

  	
  60

  	
  %

  	
   

  	
   

  
	
  6

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  	
  100

  	
  %

  	
  80

  	
  %

  	
   

  	
   

  
	
  7

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  	
  100

  	
  %

  	
  100

  	
  %

  	
  100

  	
  %

  

 

(c)           ̈            Years
of Service for Vesting shall exclude (check one):

(1)                                   ̈                                    for
new plans, service prior to the Effective Date as defined in Section
1.01(d)(1).

(2)                                   ̈                                    for existing plansconverting from another plan document, service prior to the
original Effective Date as defined in Section
1.01(d)(2).

(d)                                  ̈                                    A Participant will forfeit his Matching Contributions and Employer Contributions upon the
occurrence of the following event (s):

(e)                                  A
Participant will be 100% vested in his Matching Contributions and Employer
Contributions upon (check the appropriate box(es), if any; if 1.06(c) is selected, Participants will automatically
vest upon Change of Control as defined in Section 1.12):

(1)                                   ̈                                    
Normal Retirement Age (as defined in Section 1.07(f)).

(2)                                   ̈                                    Early
Retirement Age (as defined in Section 1.07(g)).

(3)                                   ̈                                    Death.

(4)                                   ̈                                    The
date on which the Participant becomes disabled, as determined under Section
1.07(h) of the Plan.

(f)             ̈            Normal
Retirement Age under the Plan is (check one):

(1)                                   ̈                                    age
65.

(2)                                   ̈                                    age
           (specify from 55
through 64).

(3)                                   ̈                                    the
later of age           
(cannot exceed 65) or the fifth anniversary of the Participant’s Commencement
Date.

If
no box is checked in this Section 1.07(f), then Normal Retirement Age is 65.

(g)          ̈            Early
Retirement Age is the first day of the month after the Participant attains age     
(specify 55 or greater) and completes           
Years of Service for Vesting.

(h)          ̈            A
Participant is considered disabled when that Participant (check one).

 9
 

(1)                                   ̈                                    is
unable to engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment which can be expected to result in
death or can be expected to last for a continuous period of not less than 12
months.

(2)                                   ̈                                    is,
by reason of any medically determinable physical or mental impairment which can
be expected to result in death or can be expected to last for a continuous
period of not less than 12 months, receiving income replacement benefits for a
period of not less than 3 months under an accident and health plan covering
employees of the Employer.

1.08                        PREDECESSOR
EMPLOYER SERVICE

 ̈                                    Service for purposes of vesting in Section 1.07(a)
and (b) shall include service with the following employer(s):

1.09                        UNFORESEEABLE
EMERGENCY WITHDRAWALS

Participant withdrawals for unforeseeable emergency prior to termination of employment (check one):

(a)         x          will
be allowed in accordance with Section 7.07, subject to a $ 1,000 minimum
amount. (Must be at least $1,000)

(b)          ̈            will not
be allowed.

1.10                        DISTRIBUTIONS

Subject to Articles 7 and 8 distributions under the Plan are always
available as a lump sum. Check below to allow distributions in installment payments:

x                                  under a systematic withdrawal plan (installments)
not to exceed 10 years which (check one if box for this Section is selected):

(a)          ̈            will
not be accelerated, regardless of the Participant’s Account balance.

(b)         x          will
be accelerated to a lump sum distribution in accordance with Section 8.03.

1.11                        INVESTMENT
DECISIONS

(a)         Investment Directions

Investments
in which the Accounts of Participants shall be treated as invested and reinvested shall be directed (check
one):

(1)                                   ̈                                    by
the Employer among the options listed in (b) below.

 10
 

(2)                                  x                                  by
each Participant among the options listed in (b) below.

(3)                                   ̈                                    in
accordance with investment directions provided by each Participant for all
contribution sources in a Participant’s Account except the following sources
shall be invested as directed by the Employer (check (A) and/or (B)):

(A)                               ̈                                    Nonelective
Employer Contributions

(B)                                 ̈                                    Matching
Employer Contributions

The Employer must direct the applicable sources among the same
investment options made available for Participant directed sources listed in
the Service Agreement.

(b)         Plan Investment Options

Participant Accounts will
be treated as invested among the Investment Funds listed in the Service
Agreement from time to time pursuant to Participant and/or Employer directions,
as applicable.

Note:             The method and
frequency for change of investments will be determined under the rules
applicable to the selected funds. Information will be provided regarding
expenses, if any, for changes in investment options.

1.12                        RELIANCE
ON PLAN

An adopting Employer may not rely solely on this Plan to ensure that
the Plan is “unfunded and maintained primarily for the purpose of providing
deferred compensation for a select group of management or highly compensated
employees” with respect to the Employer’s particular situation. This Agreement
must be reviewed by the Employer’s attorney before it is executed.

This Adoption Agreement may be used only in conjunction with the
CORPORATEplan for Retirement Executive Plan Basic Plan Document.

 11
 

EXECUTION PAGE

(Employer’s Copy)

IN WITNESS WHEREOF, the Employer has caused this
Adoption Agreement to be executed this 17th day of
February, 2005.

	
   

  	
  Employer

  	
   

  	
  Chicago Board Options Exchange

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
  /s/ Alan J. Dean

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title

  	
   

  	
  Executive V.P. Finance & CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Employer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title

  	
   

  

 

 12

Attachment A

Pursuant to Section 1.03(a), the following are the
Employees who are eligible to participate in the Plan:

 

	
   

  	
  Employer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Date

  	
   

  

 

Note:                   The Employer
must revise Attachment A to add Employees as they become eligible or delete
Employees who are no longer eligible. Attachment A should be signed and dated
every time a change is made.

Attachment B

(a)                ̈The Participant’s vested percentage in Matching
Contributions elected in Section 1.05(b) shall be based upon the following
schedule:

 

(b)                                  ̈The Participant’s vested percentage in Employer Contributions elected in Section
1.05(c) shall be based upon the following schedule:

 

The CORPORATEplan for RetirementSM

EXECUTIVE
Plan

 

Service Agreement

 

 

 

IMPORTANT NOTE

The CPR Executive Plan has not been approved by
the Department of Labor, the Internal Revenue Service or any other governmental
entity. An Adopting Employer must determine whether the plan is subject to the
Federal securities laws and the securities laws of the various states. An
Adopting Employer may not rely on the CPR Executive Plan documents to ensure
any particular tax consequences or to ensure that the Plan is “unfunded and
maintained primarily for the purpose of providing deferred compensation to a
select group of management or highly compensated employees” under the Employee
Retirement Income Security Act with respect to the Employer’s particular
situation. Fidelity Management Trust Company, its affiliates and employees
cannot provide you with legal advice in connection with the execution of any of
the CPR Executive Plan documents. The CPR Executive Plan document should be
reviewed by the Employer’s attorney prior to execution.

The CORPORATEplan for RETIREMENTSM

Executive Plan Service Agreement

 

EXECUTIVE PLAN

This
Agreement is between Fidelity Management Trust Company (“Fidelity”) and Chicago
Board Options Exchange, Inc. (the “Employer”), who maintains the Plan designated
below.

 

	
  Plan Name:

  	
  Chicago Board Options Exchange Deferred

  Compensation Plan for Officers

  
	
   

  	
   

  
	
  Implementation Type:

  	
  Start Up Plan

  
	
   

  	
   

  
	
  Effective
  Date:

  	
  02/27/2005

  
	
   

  	
   

  
	
  Implementation Date:

  	
  02/27/2005

  

 

 2
 

ARTICLE I. Basic Services
And Fees

A.            Implementation Services

	
  

  	
  Set Up Fee:

  	
  Fee Waived

  

 

Includes:

·                                          Model
plan document and trust agreement for review by Employer’s legal counsel.

·                                          Camera-ready
copy of all relevant Administrative Forms

·                                          Employee
Communication Materials

·                                          Fidelity
Plan Sponsor WebStation (PSW) Workbench Software and Reference Manual

·                                          Implementation
Conference Call. Issues covered include data transmission, contribution
processing cycles, plan administrative needs, plan profile, project timetables,
and resource coordination.

·                                          Preparation
of Participant and plan records for the Fidelity Participant Recordkeeping
System (FPRS).

·                                          Reconciliation
of all contribution data.

	
  

  	
  Conversion Fee:

  	
  Fee Waived

  

 

Includes:

·                                          Review
of prior plan document and comparison to CPR document

·                                          Reconciliation
of Participant records and Plan assets

·                                          Verification
report for all records received by Fidelity via electronic file (e.g.,
Participant indicative, balances)

·                                          Implementation
conference call with consultation
provided on the following:

·                                          Conversion
method

·                                          Data
transmission methods

·                                          Asset
transfer process

·                                          Coordination
with prior trustee or custodian for transfer of assets

 3
 

B.            Administrative Services

	
  

  	
  Annual fee:

  	
  Fee Waived

  

 

Includes:

Plan Administrator
Services:

·                                          Contribution
processing as provided in Appendix C

·                                          Employer
access to PSW, includes up to 2 User Identification Numbers

·                                          Daily
valuation

·                                          Investment
exchanges of existing Participant account balances

·                                          Investment
direction of future contributions

·                                          Monthly
Trial Balance Report

·                                          Distribution
processing as provided in Appendix D

·                                          Quarterly
Administrative Report**

·                                          Annual
Plan-Year End Summary Reporting Package (cash basis).

·                                          Custody
of plan assets held in trust at Fidelity.

Participant Services:

·                                          Participants’
Quarterly Statements as provided in Appendix B**

·                                          Internet
access (via NetBenefits) to account balance and fund price information

·                                          Maintenance
of individual account records for each Participant.

·                                          Telephone
access to account balance and fund price information

·                                          Investment
exchanges of existing Participant account balances

·                                          Investment
direction of future contributions

**The Quarterly
Administrative Report and Quarterly Statements will be generated based on:

January 31, April 30, July 31, and October 31 cycle.

 4
 

ARTICLE II. Terms And
Conditions

The
Implementation, Administrative and Trustee Services on the preceding pages are
contingent upon the following terns:

1.                                      Required
Documentation: This Service Agreement may only be used in conjunction
with the CORPORATEplan for Retirement
Executive Plan (“CPR Executive”) and Trust Agreement (“Trust Agreement”)
provided by Fidelity. Fidelity’s provision of Administrative and trustee
services under this Service Agreement shall be conditioned on the Employer
delivering to the Trustee a copy of the executed CPR Executive Adoption
Agreement and any amendments as soon as administratively feasible following the
Plan’s or the amendment’s adoption.

2.                                      Data
Submission: The Employer or Plan Administrator will provide Fidelity on
a timely basis with accurate and complete data via PSW. As of the
Implementation Date, the Employer or Plan Administrator must send Fidelity the
following required data for each new or existing Participant: name, address,
employment dates, employment status, status under the Plan as a Key Employee
(if applicable), and initial investment elections. After the Implementation
Date, the Employer or Plan Administrator may only send Fidelity the
aforementioned information for a new Participant or changes to the name,
address, employment dates, employment status, or status as a Key Employee for
an existing Participant. The inclusion of an Employee in the information
submitted to Fidelity shall constitute notice to Fidelity that such Employee
has been made a participant in the Plan pursuant to Section 1.03 of the CPR
Executive Adoption Agreement. Investment election changes may only be made as
provided in this Article II, Section Four. Fidelity will not be responsible for
any losses and/or expenses that arise due to the submission of incorrect or
incomplete data, or data transmitted to Fidelity in an improper format.

3.                                      Services:
Fidelity will have the responsibility to perform only the services set forth in
Articles I and II and Appendices A through E of this Agreement, effective as of
the Implementation Date. All other functions, including distributions to plan
participants and any and all required tax reporting or withholding, except to
the extent Fidelity has approved performing a distribution service as described
in Appendix D, shall be the responsibility of the Employer and the Plan
Administrator.

4.                                      Participant
Investment Direction: If the Employer has selected participant
direction for the treatment of the investment and reinvestment of contributions
in the CPR Executive Adoption Agreement, the Trustee is directed to invest and
reinvest such funds in a manner which corresponds directly to elections made by
Participants. Each Participant in the Plan shall submit his/her initial
investment elections to the Employer or Plan Administrator. These elections
will then be submitted to Fidelity by the Employer or Plan Administrator in
accordance with the terms set forth in Section One. Thereafter, all subsequent
investment elections for existing Participants may only be directed in
accordance with this Section Four. Fidelity will not be responsible for any
losses and/or expenses that arise for clients who provide changes for existing
Participant investment elections via PSW.

 5
 

After his/her initial investment election, each
Participant in the Plan shall be permitted to direct the investment of his/her
individual account balance and investment of future contributions among the
Permissible Investments as provided in, and subject to the provisions of,
Appendix A to this Agreement through the use of Fidelity’s telephone exchange
system or an internet or other electronically based exchange system. The
Employer hereby directs Fidelity to act upon such instructions without
questioning the authenticity of such direction.

The number of exchanges from a Participant’s existing
account balance will be governed by the mutual fund prospectus or other
governing document for that investment, unless indicated otherwise in Appendix
A or E. Fidelity reserves the right to modify or withdraw the exchange
privilege in the future. Except as otherwise provided in this Agreement,
including any Appendices, a proper exchange request received by Fidelity prior
to the closing of the New York Stock Exchange shall be effective on that day.

A Participant shall be required to provide personal
identification information prior to being given access to his/her accounts. For
security purposes, upon proper notice to Fidelity, the Employer may direct that
a Participant using the telephone exchange system be required to respond to
additional questions (e.g., date of birth, date of hire) before being able to
access his/her accounts. Only authorized Plan contact(s) and the Participant
shall have access to a Participant’s account. A third party may not have access
to the Participant’s account or make exchanges of existing account balance
and/or changes in the investment of future contributions. Upon proper
documentation and notice to the Employer, an individual who becomes an active
Beneficiary in accordance with the Basic Plan Document due to the death of the
Participant shall have the right to access the deceased Participant’s account
for purposes of directing investments. Fidelity reserves the right to establish
a separate account for the Beneficiary based upon his/her entitlement to the
deceased Participant’s account.

A Participant may not change his/her address through a
telephone or internet exchange system. All such changes must be submitted to
the Employer. The Employer shall then send such changes to Fidelity in the
required format.

5.                                      Employer
Investment Direction: If Employer investment direction is chosen by the
Employer, then all Participant accounts must be invested in Permissible
Investments as provided in, and subject to the provisions of, Appendix A to
this Agreement. A Participant will not be allowed to make any telephone
exchanges of his/her account balance. The Employer may replace any existing
Fidelity Fund(s) for another by providing Fidelity with proper written
direction at least thirty days prior to the effective date of the change. Fidelity
will charge the Employer a reasonable additional fee to facilitate the
replacement of the fund(s).

6.                                      Contributions:
The Employer will be responsible for determining Employee eligibility and
for computing Employee and/or Employer contributions for eligible Participants.
The Employer shall provide contribution related information and make
contributions to the Plan in the manner provided in Appendix C. If the Employer
desires to use a Participant’s interest in the Plan to pay that Participant’s
employment taxes due on vested

 6
 

accruals under the Plan,
the Employer shall accomplish such payments by reducing contributions to the
Trust and shall be solely responsible for all tax reporting consequences of
that reduction.

7.                                      Distributions:
Unless Fidelity has approved the Plan for a different service as described
in Appendix D, Fidelity shall disburse monies to the Employer for Participant
benefit payments in the amounts the Employer directs. Distributions to
Participants or Beneficiaries shall be requested by the Employer in the method
described within, and subject to the constraints of, Appendix D.

8.                                      Fees:
As consideration for its services under this Agreement, Fidelity shall be
entitled to the fees computed in accordance with Articles I and II and any
Appendices or amendments to this Agreement. A reasonable additional fee will be
charged if Fidelity has to reprocess any contribution data transmission due to
excessive errors of the Employer or payroll vendor. Additional services and
special reports or statements may be provided if Fidelity and Employer enter
into a separate written agreement identifying such services and the associated
fees. Fidelity shall be entitled to reasonable compensation for its costs and
expenses incurred in the event of termination of this Agreement. However,
Fidelity reserves the right to charge a termination fee equal to a full year of
fees identified under Articles I and II in the event the Employer terminates
its relationship with Fidelity within one year after the Implementation Date.

The implementation service fee in Article I will be
billed during the implementation process. The administrative and trustee fees
in Article II will become effective as of the later of the Plan’s Effective
Date in Section 1.01(d) of the Adoption Agreement or the Implementation Date. These
fees shall be billed in arrears to the Employer quarterly.

If payment of the aforementioned fees is not received by
Fidelity within sixty days of receipt of Fidelity’s quarterly invoice, or the
fees are to be paid by the Participants, then the fees shall be paid from the
Trust fund. Unless allocable to the accounts of particular Participants, such
fees shall be charged against the respective accounts of all Participants on a
per capita basis.

9.                                      Duration
and Amendment: This Agreement shall remain in effect for the remainder
of the current calendar year and shall thereafter be automatically extended for
successive one-year terms. Either party, however, by sixty days prior written
notice to the other, may terminate this Agreement unless the receiving party
agrees to a shorter notice period. This Agreement may be amended or modified at
any time and from time to time by an instrument executed by the parties. Notwithstanding
the foregoing, Fidelity reserves the right to (1) terminate this Agreement if
the Employer terminates any other agreement the Employer has with Fidelity to
provide recordkeeping services to a retirement plan and (2) amend unilaterally
to update services and procedures or to revise the fee schedule upon sixty days
prior written notice to the Employer.

10.                               Beneficiary
Designation Forms: The Employer or Plan Administrator will be
responsible for physical custody of all Participant beneficiary designation
forms.

 7
 

11.                               Service
Providers: Fidelity Management Trust Company is the Trustee of the
Employer’s Plan under CPR Executive. Fidelity may use its affiliates in
providing the services described in this Agreement.

12.                               Construction
and Interpretation: This Agreement shall be construed in accordance
with the laws of the Commonwealth of Massachusetts except to the extent such
laws are superseded by Section 514 of ERISA. Unless defined herein or a
different meaning is clearly required by the context, capitalized terms shall
have the meanings set forth in the Trust.

13.                               Reliance
and Indemnification: Fidelity may rely upon and act upon any writing or
any other medium acceptable to Fidelity, including but not limited to electronic
medium, from any person authorized by the Employer to give instructions
concerning the Plan and may conclusively rely upon and be protected in acting
upon any written or electronic order from the Employer or upon any other
notice, request, consent, certificate, or other instructions or paper
reasonably believed by it to have been executed by a duly authorized person, so
long as it acts in good faith in taking or omitting to take any such action. Fidelity
need not inquire as to the basis in fact of any statement in writing received
from the Employer. Fidelity shall be entitled to reasonably rely upon the
information provided by the Employer in performance of its duties hereunder. Unless
resulting from Fidelity’s negligence or willful misconduct, the Employer shall
indemnify and save harmless Fidelity from any and all liabilities and expenses,
including without limitation, reasonable attorney’s fees incurred or required
to be paid by Fidelity in connection with the Plan.

Notwithstanding anything in this Agreement to the
contrary and subject to the provisions of the attached Appendices to this
Agreement, (i) any direction, notice or other communication provided to the
Employer or Fidelity by another party required to be in writing by the Plan or
this Service Agreement, (ii) any service provided under this Agreement
requiring or utilizing written information, or (iii) any written communication
or disclosure to Participants required by the Plan or this Service Agreement
may be provided through any medium that is permitted under applicable law or
regulation and, to the extent so allowed, will no longer require any writing to
which reference is made in this Agreement.

 8
 

Specimen Signatures

At
least one person is required to be authorized to provide instructions to
Fidelity Management Trust Company regarding the CORPORATEplan for Retirement Executive Plan Account. Only the following
person(s) designed below is/are authorized to advise Fidelity on all plan
administrative matters: 

	
  NAME & TITLE

  	
   

  	
  SPECIMEN SIGNATURE

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Alan J. Dean

  	
   

  	
  /s/ Alan J. Dean

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Executive V.P.
  Finance & CFO

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Deborah Woods

  	
   

  	
  /s/ Deborah
  Woods

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Vice President—Human
  Resources

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Theresa Trice

  	
   

  	
  /s/ Theresa
  Trice

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Director—Benefits

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

PROCEDURE FOR CHANGING SPECIMEN SIGNATURES:

The specimen signatures
can be changed by the Employer at any time. To add to a new authorized signer,
the Employer must send a letter of instruction signed by an authorized
individual to the Account Manager, with an original specimen signature of the
new authorized signer. To delete or replace a signer, the Employer should
identify the name(s) of the individual(s) who are no longer authorized
signer(s). The Employer must provide any change at least ten business days
prior to the date the change will become effective.

 9
 

Execution Page (Client’s
Copy)

This Agreement shall be
effective upon execution by both parties. By executing this Agreement, the
parties agree to terms and conditions contained in the Agreement and the
following attached Appendices:

	
  Service Agreement

  	
   

  	
  Original

  Effective Date

  	
   

  	
  Revision Date(s)

  
	
  Articles I (Basic Services and Fees)

  	
   

  	
  02/27/2005

  	
   

  	
   

  
	
  Article II (Terms and Conditions)

  	
   

  	
  02/27/2005

  	
   

  	
   

  
	
  Appendix A (Plan Investment Options)

  	
   

  	
  02/27/2005

  	
   

  	
   

  
	
  Appendix B (Enrollment and Education Services)

  	
   

  	
  02/27/2005

  	
   

  	
   

  
	
  Appendix C (Contribution Processing)

  	
   

  	
  02/27/2005

  	
   

  	
   

  
	
  Appendix D (Distribution Processing)

  	
   

  	
  02/27/2005

  	
   

  	
   

  
	
  Appendix E (Miscellaneous)

  	
   

  	
  02/27/2005

  	
   

  	
   

  

 

In witness
whereof, the parties hereto have caused this Agreement to be executed by their
duly authorized officers.

	
  Employer:

  	
   

  	
  Employer:

  
	
   

  	
   

  	
   

  
	
  /s/ Deborah
  Woods

  	
   

  	
   

  	
  (Signature)

  
	
   

  	
   

  	
   

  
	
  (Signature)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Deborah Woods

  	
   

  	
   

  	
  (Print Name)

  
	
   

  	
   

  	
   

  
	
  (Print Name)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Vice
  President—Human Resources

  	
   

  	
   

  	
  (Title)

  
	
   

  	
   

  	
   

  
	
  (Title)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  2-17-05

  	
   

  	
   

  	
  (Date)

  
	
   

  	
   

  	
   

  
	
  (Date)

  	
   

  	
   

  
					

 

Note:                   Only one
authorized signature is required to execute this Agreement unless the Employer’s
corporate policy mandates multiple authorized signatures.

Fidelity
Management Trust Company:

	
  /s/ Glen J. Kindness 

  	
   

  
	
   

  	
   

  
	
  (Signature)

  
	
   

  	
   

  
	
  Glen J. Kindness
  

  	
   

  
	
   

  	
   

  
			

 

 10
 

 

	
   

  	
   

  
	
  

  	
   

  
	
  (Print Name)

  
	
   

  	
   

  
	
  Authorized
  Signatory 

  	
   

  	
   

  
	
   

  
	
  (Title)

  
	
   

  	
   

  
	
  February 23,
  2005 

  	
   

  	
   

  
	
   

  
	
  (Date)

  	
   

  
	
   

  	
   

  

 

 11

APPENDIX A – INVESTMENT
SCHEDULE AND SERVICES

Participant
Accounts under the Trust shall be invested among the Permissible Investment
options listed below pursuant to Participant and/or Employer directions and
pursuant to the conditions and limitations contained in this Appendix A. Unless
specifically indicated otherwise within this Appendix A, Appendix E, or an
amendment to this Agreement, purchases, sales and exchanges of each Permissible
Investment option are controlled by that Permissible Investment’s prospectus or
other governing document(s).

1.                                      Fidelity
Funds (Core Options):

	
  Fund #

  	
   

  	
  Fidelity Fund Name

  
	
   

  	
   

  	
   

  
	
  0630

  	
   

  	
  Fidelity Retirement Money Market Portfolio

  
	
  0314

  	
   

  	
  Fidelity Asset Manager®

  
	
  0021

  	
   

  	
  Fidelity Magellan® Fund

  
	
  0022

  	
   

  	
  Fidelity Contrafund®

  
	
  0094

  	
   

  	
  Fidelity Overseas Fund

  
	
  0027

  	
   

  	
  Fidelity Growth & Income Portfolio

  
	
  0650

  	
   

  	
  Spartan® U.S. Equity Index Fund

  
	
  0026

  	
   

  	
  Fidelity Investment Grade Bond Fund

  
	
  0038

  	
   

  	
  Fidelity Capital & Income Fund

  
	
  0093

  	
   

  	
  Fidelity OTC Portfolio

  
	
  0370

  	
   

  	
  Fidelity Freedom 2000 Fund®

  
	
  1312

  	
   

  	
  Fidelity Freedom 2005 Fund

  
	
  0371

  	
   

  	
  Fidelity Freedom 2010 Fund®

  
	
  1313

  	
   

  	
  Fidelity Freedom 2015 Fund

  
	
  0372

  	
   

  	
  Fidelity Freedom 2020 Fund®

  
	
  1314

  	
   

  	
  Fidelity Freedom 2025 Fund

  
	
  0373

  	
   

  	
  Fidelity Freedom 2030 Fund®

  
	
  1315

  	
   

  	
  Fidelity Freedom 2035 Fund

  
	
  0718

  	
   

  	
  Fidelity Freedom 2040 Fund®

  
	
  0369

  	
   

  	
  Fidelity Freedom Income Fund®

  

 

The Employer agrees that any Fidelity Freedom funds
listed above (all those starting with “Fidelity Freedom”) are being selected as
a group of all the Fidelity Freedom funds currently available for the Plan. The
Employer understands that a choice can be made at any time to remove all
Fidelity Freedom funds as Permissible Investments for the Plan. The Employer
agrees that any change to the Permissible Investments for the Plan to remove
Fidelity Freedom funds will be effective as soon as administratively feasible
for Fidelity (after the Employer and Fidelity have amended this agreement to
reflect such change) and that the Employer will communicate to participants the
date and consequences of such change. The Employer hereby directs Fidelity to
add or remove as Permissible Investments for the Plan any Fidelity Freedom fund
being added to or removed from the group of all Fidelity Freedom funds.
Fidelity shall always give the Employer at least 90 days notice of the date
that funds available through the Freedom

Fund group will change and the Employer has until 20
days before such date to direct Fidelity to remove all Fidelity Freedom funds
as Permissible Investments for the Plan.

2.                                      Non-Fidelity
Funds (Core Options):

The Employer has selected each (“Non-Fidelity Fund”)
of the following as an investment made available to the Plan for investment of
the assets of the Trust, subject to the terms and conditions given below:

	
  Fund #

  	
   

  	
  Non-Fidelity Fund Name

  
	
   

  	
   

  	
   

  
	
  OF78

  	
   

  	
  Templeton Foreign Fund - Class A

  
	
  OFQR

  	
   

  	
  Baron Asset Fund

  
	
   

  	
   

  	
   

  
	
  ONBP

  	
   

  	
  MS Insititutional Fund, Inc. - Value Equity
  Portfolio Class B

  

 

Fidelity shall provide recordkeeping services for
Non-Fidelity Funds subject to and in accordance with the terms and conditions
of this Section:

1.               For
purposes of this Agreement, ‘Non-Fidelity Fund’ shall mean an investment
company registered under the Investment Company Act of 1940, as amended, other
than one advised by Fidelity Management & Research Company, and specified
in an agreement between Fidelity and the transfer agent for such investment
company (‘Fund Vendor’).

2.               The
basis-point-per-annum fee charged by Fidelity shall be computed and billed or
charged in arrears quarterly based on the market value of Non-Fidelity Funds
held in Participant Accounts on the last business day of the quarter. In
addition to the fees specified above, Fidelity shall be entitled to fees from
the Fund Vendor as set forth in a separate agency agreement with the Fund
Vendor. Fidelity will make available appropriate information concerning the
current provisions of such agreements electronically (currently through Plan
Sponsor WebStation) for the Employer’s review.

3.               The
Fund Vendor shall prepare and provide descriptive information on the funds for
use by Fidelity in its written participant communication materials. Fidelity
shall utilize historical performance data obtained from third-party vendors in
communications with plan participants. The Employer hereby consents to Fidelity’s
use of such materials and acknowledges that Fidelity is not responsible for the
accuracy of such third-party information.

The Basis-point-per-annum fee has been waived on
amounts invested in Non-Fidelity Funds.

3.                                      Annual
Fee for Excess Core Permissible Investment Options

The fees stated in this Service Agreement take into
consideration the Core Permissible Investment options selected by the Employer
in this Service Agreement and include up to

20
Permissible Investment options with no additional annual fee. The annual fee
for each Core Permissible Investment option in excess of 20 is $500.00
per option and such fee is in addition to any fees specified elsewhere in this
Service Agreement, including any Appendices and amendments hereto. The annual
fee for excess Core Permissible Investment options shall be billed or charged
quarterly in arrears and paid by the Employer. The Fidelity Freedom
funds collectively shall each count as one Core Permissible Investment option. Any
change to the Permissible Investment options selected by the Employer after the
effective date of this Service Agreement shall require an amendment to this
Service Agreement and may result in amended or additional fees.

APPENDIX B – ENROLLMENT
AND EDUCATION SERVICES

Fidelity
shall provide Enrollment and Education Services as provided in Article I and as
outlined in this Appendix B.

1.                                      Enrollment
and Educational Services

a.                                       Unless
the Employer specifically directs Fidelity otherwise in writing, Plan
Participants will be provided educational and informational materials about
integrated Fidelity investment opportunities through the Fidelity Employee
Investment Services program.

b.                                      Fidelity
may from time to time produce communication materials and forms that the
Employer may use regarding the Plan. The Employer acknowledges that it is
solely responsible for any such communication materials and/or forms, or
modification thereof, ultimately distributed or otherwise used in connection
with the Plan.

c.                                       Participants
will receive account statements in the following manner:

Fidelity will mail Participant statements directly to Participants’
homes except for individual Participants who have indicated through Automated
Channels (Fidelity Automated Retirement Benefits Line, NetBenefitsSM World Wide Web Internet service, or any other
service subsequently employed by Fidelity to facilitate electronic plan
administration) that they desire to receive statements only through Automated
channels.

APPENDIX C – CONTRIBUTION
PROCESSING

Fidelity
shall provide contribution processing services as provided in Article I and as
outlined in this Appendix C. Contributions are subject to the terms and
conditions contained herein.

1.                                      The
Employer shall be responsible for calculating and effecting Participant and
Employer contributions to the Plan and transmitting such contributions and
associated contribution data to Fidelity within legal time limits.

2.                                      The
Employer must consolidate all contribution data for multiple payroll cycles
and/or multiple sites into one transmission. Contribution data shall be
received by Fidelity via Plan Sponsor Webstation (“PSW”), or other medium
permitted by Fidelity, in the manner specified. The Employer’s computer system
must meet certain minimum specifications to enable this service.

3.                                      Following
the receipt of contribution data in good order (as determined by Fidelity),
Fidelity shall, through Automated Clearing House (“ACH”), request an electronic
funds transfer from the account the Employer has specified in the Service Setup
Form. Contributions received in good order will be credited to Participants’
accounts on the business day they are received, if received prior to the close
of the New York Stock Exchange’s business day.

4.                                      Notwithstanding
section 3 contained herein, Fidelity may allow the Employer to wire transfer
contributions according to instructions provided by Fidelity conditioned that
the contribution data is reviewed by a Fidelity representative prior to the
initiation of the transfer. Fidelity reserves the right to require Employers to
wire transfer all contributions if an ACH transfer is rejected. Unsolicited or
improperly formatted transfers may not be invested until properly identified
and reconciled.

5.                                      In
the event that Fidelity, or any of its affiliates, provides tools or services
to assist the Employer with the calculation of the Matching Employer and/or
Employer Contributions, Fidelity does not represent, warrant, guarantee or
certify that such calculations are accurate. The Employer agrees that Fidelity
has no responsibility for any such calculations.

APPENDIX D – DISTRIBUTION
PROCESSING

1.                                      Distributions
for benefit payments will be processed once a month based upon a mutually
acceptable date determined immediately after the implementation period by
Fidelity and the Plan Administrator. Distributions will only be processed if
there is complete, accurate and properly authorized data received by Fidelity
in the required media. All distribution requests received after the monthly cutoff
date will be processed the following month. The monthly withdrawal date may be
changed once each Plan Year based upon the written consent of Fidelity and the
Employer. Fidelity shall not be responsible for: (i) making benefit payments to
Participants under the Plan, (ii) any Federal, State or local income tax
reporting or withholding with respect to such Plan benefits, and (iii) FICA
(Social Security and Medicare) or any Federal or State unemployment tax with
respect to Plan distributions.

2.                                      Class
Year Accounting (CYA). The Employer has elected CYA in its CPR Executive Plan
and Fidelity hereby agrees to track specific contribution years in which
contributions paid to the Trust will be distributed to the Participants. The
Employer agrees that this will be tracked electronically and that the
Participants will make their elections for distributions through the
NetBenefitsSM website or any other application subsequently
utilized by Fidelity for that purpose (“NetBenefitsSM”). The Employer understands that Fidelity
will only track as part of the contributions constituting one class year those
contributions actually received into the Trust by Fidelity during the calendar
year. A Participant may not elect to defer a subsequent calendar year’s
deferrals for a period of less than 12 months from the first day of the
calendar year in which such deferrals would otherwise have been paid to the
Participant. Notwithstanding the Employer having elected this CYA provision,
all distributions for benefit payments will be paid in accordance with the
distribution provisions provided in Section 1 of this Appendix D, except that
distributions will be paid on the date established within Fidelity’s electronic
tracking system.

APPENDIX E -
MISCELLANEOUS

The
following provision(s) of this Appendix E shall supersede the referenced
provision(s) of this Agreement, subject to the terms and conditions contained
herein:

Title:
Construction and Interpretation

Description: Article II, Section 12,
replace “Commonwealth of Massachussets” with “Illinois”.

Exception Fee: Fee Waived

Title:
Indemnification

Description: Article II, Section 13:
The following provisions apply notwithstanding anything contained in Section 13
of this Service Agreement:

1.             The last sentence of
paragraph 1 of Section 13 shall read as follows: Unless resulting from Fidelity’s
negligence or willful misconduct, the Employer shall indemnify and save
harmless Fidelity from any and all liabilities and expenses, including without
limitation reasonable attorney’s fees, incurred or required to be paid by
Fidelity in connection with any of the Plans, to the extent that such
liabilities and expenses result from the acts or omissions of the Employer, the
Plan Administrator or any of their employees or agents.

2.             The following
paragraph shall be added at the end of Section l3: Unless resulting from the
Employer’s negligence or willful misconduct, Fidelity shall indemnify and save
harmless the Employer from any and all liabilities and expenses, including
without limitation, reasonable attorney’s fees, incurred or required to be paid
by the Employer in connection with any of the Plans, to the extent that such
liabilities and expenses result from the acts or omissions of Fidelity or any
of its employees or agents.

Exception Fee: Fee Waived

Title:
Outside Trustee

Description: Fidelity Management Trust
Company (FMTC) will not act as a Trustee for the rabbi trust (the “Trust”)
associated with the Chicago Board of Options Exchange Executive Retirement
Plan, Supplemental Retirement Plan or Deferred Compensation Plan for Officers
(the “Plans”). FMTC and its affiliates (Fidelity) will provide certain
administrative and recordkeeping services, as outlined in this Service
Agreement. Fidelity will take direction from the Trustees of the Chicago Board
of Options Exchange’s Executive Retirement Plan, Supplemental Retirement Plan
or Deferred Compensation Plan for Officers, which direction may include
direction to set up accounts, accept contributions, provide investment options,
and distribute the assets. Fidelity will have no

responsibility to
determine if the distribution instructions (or any other instructions) provided
by the Trustee are permissible under the terms of the Plan(s) or any applicable
law. Fidelity will utilize the Fidelity Participant Recordkeeping System (FPRS)
to maintain individual, hypothetical participant accounts and will take
direction from the participants regarding the investment of the accounts among
the investment options permitted by the Trustee(s).

The Trustees shall
designate authorized signers.

Employer hereby
agrees that, although Fidelity will not serve as a Trustee for the Trust,
Fidelity shall nevertheless hold all of the assets of the Trust in mutual fund
investments selected solely by the Trustee.

Exception Fee: Fee Waived

Title:
Distributions

Description: The client will provide an
amendment that allows distribution at the earlier of termination of service or
a class year accounted date.

Exception Fee: Fee Waived

Title:
Changing Distributions

Description: The client will provide an
amendment allowing Participants to change the timing and form of distribution.

Exception Fee: Fee Waived

Title:
Deferral Contributions

Description: The client will provide an
amendment modifying the percentage of bonus deferral contributions.

Exception Fee: Fee Waived

CHICAGO BOARD OPTIONS
EXCHANGE

DEFERRED COMPENSATION PLAN FOR OFFICERS

SECOND AMENDMENT TO THE
ADOPTION AGREEMENT 

AND BASIC PLAN DOCUMENT

This
Amendment, which is effective February 16, 2005, is an integral part of theFidelity
Corporate Plan for Retirement Executive Plan as adopted by the Chicago Board
Options Exchange (“Employer”) in maintaining the Chicago Board Options Exchange
Deferred Compensation Plan for Officers (“Plan”). The provisions set forth in
this attachment shall be applicable with respect to the Plan as adopted by the
Employer notwithstanding any other provision contained in the Basic Plan
Document or the Adoption Agreement to the contrary. The execution of the
Adoption Agreement by the Employer is only valid with the inclusion of the provisions
set forth below.

ADOPTION AGREEMENT

Section 1.05 - Deferral Contributions - A Participant
may elect to make deferral contributions, pursuant to § 1.05(a) of the Adoption
Agreement, in a percentage not to exceed 20% of Compensation, exclusive of any bonus;
provided that the deferral contribution for the period commencing on February
16, 2005 and ending on December 31, 2005 shall not exceed 20% of Compensation
for calendar year 2005 exclusive of any bonus.

A
Participant may elect to make bonus contributions, pursuant to § 1.05(a) of the
Adoption Agreement, in a percentage not to exceed 20% of such bonus; provided,
however, that for the period commencing on February 16, 2005 and ending on
December 31, 2005, such percentage shall not exceed 20% of the bonus for
calendar year 2005.

Deferral
contributions shall be in whole or decimal percentages as designated by a
Participant in his or her election form.

Deferrals
of Compensation shall be made pursuant to election forms filed with the
Employer in writing, or by other means prescribed by the Employer, no later
than the close of the calendar year preceding the calendar year in which the
services related to such Compensation are performed. Notwithstanding the
preceding sentence, however:

1.             In
the first calendar year in which an Employee becomes eligible to participate in
the Plan, an election to defer Compensation may be made with respect to
services to be performed subsequent to the delivery of an election form within
30 days after the date the Employee becomes eligible to participate in the
Plan.

2.             An
election to defer a performance-based bonus, as defined in Internal Revenue
Code Section 409A and guidance issued thereunder, may be made no later than six
months before the end of the 12 month performance period during which the
services related to the bonus are performed.

An
election form may apply to a Participant’s total Compensation attributable to
both base compensation and bonus, or only to the portion of his or her
Compensation attributable to

either base compensation or bonus. An election form
applicable only to the portion of Compensation attributable to bonus shall be
effective only with respect to the specific bonus described therein. An
election form delivered by a Participant shall continue in effect for
succeeding calendar years until modified or revoked by a Participant with a
subsequent election form filed with the Employer in writing no later than the
last day of the calendar year immediately preceding the first day of the
calendar year for which such modification or revocation is effective.

IN WITNESS WHEREOF, the Employer
has caused this Second Amendment to be executed on its behalf by its officer
duly authorized on this 3rd day of January, 2006.

 

	
  

  	
  CHICAGO BOARD OPTIONS EXCHANGE, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Alan J. Dean

  
	
   

  	
  Alan J.

  	
   Dean

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
  Executive V.P. Finance & CFO

  
						

 

 2

CHICAGO
BOARD OPTIONS EXCHANGE

DEFERRED COMPENSATION PLAN FOR OFFICERS

AMENDMENT
TO THE ADOPTION AGREEMENT

AND BASIC PLAN DOCUMENT

This
Amendment, which is effective February 16, 2005, is an integral part of the
Fidelity Corporate Plan for Retirement Executive Plan as adopted by the Chicago
Board Options Exchange (“Employer”) in establishing the Chicago Board Options
Exchange Deferred Compensation Plan for Officers (“Plan”). The provisions set
forth in this attachment shall be applicable with respect to the Plan as
adopted by the Employer notwithstanding any other provision contained in the
Basic Plan Document or the Adoption Agreement to the contrary. The execution of
the Adoption Agreement by the Employer is only valid with the inclusion of the
provisions set forth below.

ADOPTION AGREEMENT

1.             Section 1.03(b)(4)
- Coverage - The Entry Date(s) shall be the first day of each month
following commencement of service as an officer.

2.             Section 1.05 -
Deferral Contributions - A Participant may elect to make deferral
contributions, pursuant to § 1.05(a) of the Adoption Agreement, in a percentage
not to exceed 20% of Compensation, exclusive of any bonus; provided that the
deferral contribution for the period commencing on February 16, 2005 and ending
on December 31, 2005 shall not exceed 20% of Compensation for calendar year
2005 exclusive of any bonus.

A
Participant may elect to make bonus contributions, pursuant to §1.05(a) of the
Adoption Agreement, in a percentage not to exceed 20% of such bonus; provided,
however, that for the period commencing on February 16, 2005 and ending on
December 31, 2005, such percentage shall not exceed 20% of the bonus for
calendar year 2005.

Deferral
contributions shall be in whole or decimal percentages as designated by a
Participant in his or her election form.

Deferrals
of Compensation shall be made pursuant to election forms filed with the
Employer in writing, or by other means prescribed by the Employer, no later
than the close of the calendar year preceding the calendar year in which the
services related to such Compensation are performed. Notwithstanding the
preceding sentence, however:

1.             In the first calendar
year in which an Employee becomes eligible to participate in the Plan, an
election to defer Compensation may be made with respect to services to be
performed subsequent to the delivery of an election form within 30 days after
the date the Employee becomes eligible to participate in the Plan.

2.             An election to defer
a performance-based bonus, as defined in Internal Revenue Code Section 409A and
guidance issued thereunder, may be made no later than six months

before the end of the 12 month performance period
during which the services related to the bonus are performed.

An
election form may apply to a Participant’s total Compensation attributable to
both base compensation and bonus, or only to the portion of his or her
Compensation attributable to either base compensation or bonus. An election
form applicable only to the portion of Compensation attributable to bonus shall
be effective only with respect to the specific bonus described therein. An
election form delivered by a Participant shall be irrevocable with respect to
any amounts covered by the election set forth therein.

3.             Section 1.06 -
Distribution Dates - Each election form delivered to the Employer with
respect to a calendar year shall specify the date on which the applicable
deferred amount and earnings thereon shall be distributed. Such date shall be
the first to occur of (1) the date of the Participant’s termination of
employment with the Employer; and (2) a date selected by the Participant,
provided that a selected date must be at least one year after the date the
deferred amount would have been paid to the Participant in cash in the absence
of the election to make the deferral. Any distribution described in clause (1)
shall be made as soon as practicable following the date of termination with the
Employer; provided, however, that in no event will distribution begin earlier
than the first day of the seventh calendar month following termination if the
Participant was a Key Employee.

Notwithstanding
the preceding paragraph, if elected by the Participant on his or her initial
election form, distribution of a Participant’s entire interest in the Plan
shall be made as soon as practicable after the date of consummation of a Change
of Control in accordance with Plan Section 7.08; provided, however, that a
Change of Control shall not include:

(a)           any
change in form of organization of the Employer from a non-stock entity to a stock
corporation, or

(b)           any
public offering of the Employer’s shares of stock after it becomes a stock
corporation.

If
the Participant fails to make an election, a change of control distribution
will not be made to the Participant.

4.             Section 1.10 -
Distributions - A distribution to a Participant pursuant to the Plan shall
be made to him or her in a single lump sum, unless the Participant, in the
initial election form filed with the Employer with respect to the amount being
distributed, indicated an election to be paid in annual installments over a
period of 10 or fewer years as designated by the Participant. If payments are
made in installments, the unpaid portion of the Participant’s interest in the
Plan from time to time shall continue to be adjusted to reflect earnings, gains
and losses thereon.

If
a Participant’s employment with the Employer terminates due to death, his or
her entire interest in the Plan shall be paid in a single lump sum as soon as
practicable after death to his or her beneficiary most recently designated by
him or her prior to the date of death. Each Participant from time to time,
pursuant to a beneficiary designation form furnished by the Employer, may
designate any legal or natural person or persons (who may be designated

 2

APPENDIX
A – INVESTMENT SCHEDULE AND SERVICES

Participant
Accounts under the Trust shall be invested among the Permissible Investment
options listed below pursuant to Participant and/or Employer directions and
pursuant to the conditions and limitations contained in this Appendix A. Unless
specifically indicated otherwise within this Appendix A, Appendix E, or an
amendment to this Agreement, purchases, sales and exchanges of each Permissible
Investment option are controlled by that Permissible Investment’s prospectus or
other governing document(s).

1.                                      Fidelity
Funds (Core Options):

	
  Fund #

  	
   

  	
  Fidelity Fund Name 

  
	
   

  	
   

  	
   

  
	
  0630

  	
   

  	
  FMMT - Retirement Money Market Fund

  
	
  0314

  	
   

  	
  Fidelity Asset Manager®

  
	
  0021

  	
   

  	
  Fidelity Magellan® Fund

  
	
  0022

  	
   

  	
  Fidelity Contrafund®

  
	
  0094

  	
   

  	
  Fidelity Overseas Fund

  
	
  0027

  	
   

  	
  Fidelity Growth & Income Portfolio

  
	
  0650

  	
   

  	
  Spartan® U.S. Equity Index Fund

  
	
  0026

  	
   

  	
  Fidelity Investment Grade Bond Fund

  
	
  0038

  	
   

  	
  Fidelity Capital & Income Fund

  
	
  0093

  	
   

  	
  Fidelity OTC Portfolio

  
	
  0370

  	
   

  	
  Fidelity Freedom 2000 Fund®

  
	
  1312

  	
   

  	
  Fidelity Freedom 2005 Fund

  
	
  0371

  	
   

  	
  Fidelity Freedom 2010 Fund®

  
	
  1313

  	
   

  	
  Fidelity Freedom 2015 Fund

  
	
  0372

  	
   

  	
  Fidelity Freedom 2020 Fund®

  
	
  1314

  	
   

  	
  Fidelity Freedom 2025 Fund

  
	
  0373

  	
   

  	
  Fidelity Freedom 2030 Fund®

  
	
  1315

  	
   

  	
  Fidelity Freedom 2035 Fund

  
	
  0718

  	
   

  	
  Fidelity Freedom 2040 Fund®

  
	
  0369

  	
   

  	
  Fidelity Freedom Income Fund®

  

 

The Employer agrees that any Fidelity Freedom funds
listed above (all those starting with “Fidelity Freedom”) are being selected as
a group of all the Fidelity Freedom funds currently available for the Plan. The
Employer understands that a choice can be made at any time to remove all
Fidelity Freedom funds as Permissible Investments for the Plan. The Employer
agrees that any change to the Permissible Investments for the Plan to remove
Fidelity Freedom funds will be effective as soon as administratively feasible
for Fidelity (after the Employer and Fidelity have amended this agreement to
reflect such change) and that the Employer will communicate to participants the
date and consequences of such change. The Employer hereby directs Fidelity to
add or remove as Permissible Investments for the Plan any Fidelity Freedom fund
being added to or removed from the group of all Fidelity Freedom funds. Fidelity
shall always give the Employer at least 90 days notice of the date that funds
available through the Freedom

Fund group will change and the Employer has until 20
days before such date to direct Fidelity to remove all Fidelity Freedom funds
as Permissible Investments for the Plan.

2.                                      Non-Fidelity
Funds (Core Options):

The Employer has selected each (“Non-Fidelity Fund”)
of the following as an investment made available to the Plan for investment of
the assets of the Trust, subject to the terms and conditions given below:

	
  Fund #

  	
   

  	
  Non-Fidelity Fund Name

  
	
   

  	
   

  	
   

  
	
  OF78

  	
   

  	
  Templeton Foreign Fund - Class A

  
	
  OFQR

  	
   

  	
  Baron Asset Fund

  
	
  OMYJ

  	
   

  	
  Wells Fargo Advantage Small Cap Value Fund – Class Z

  
	
   

  	
   

  	
   

  
	
  ONBP

  	
   

  	
  MS Insititutional Fund, Inc. - Value Equity
  Portfolio Class B

  

 

Fidelity shall provide recordkeeping services for
Non-Fidelity Funds subject to and in accordance with the terms and conditions
of this Section:

1.               For
purposes of this Agreement, ‘Non-Fidelity Fund’ shall mean an investment
company registered under the Investment Company Act of 1940, as amended, other
than one advised by Fidelity Management & Research Company, and specified
in an agreement between Fidelity and the transfer agent for such investment
company (‘Fund Vendor’).

2.               The
basis-point-per-annum fee charged by Fidelity shall be computed and billed or
charged in arrears quarterly based on the market value of Non-Fidelity Funds
held in Participant Accounts on the last business day of the quarter. In
addition to the fees specified above, Fidelity shall be entitled to fees from
the Fund Vendor as set forth in a separate agency agreement with the Fund
Vendor. Fidelity will make available appropriate information concerning the
current provisions of such agreements electronically (currently through Plan
Sponsor WebStation) for the Employer’s review.

3.               The
Fund Vendor shall prepare and provide descriptive information on the funds for
use by Fidelity in its written participant communication materials. Fidelity
shall utilize historical performance data obtained from third-party vendors in
communications with plan participants. The Employer hereby consents to Fidelity’s
use of such materials and acknowledges that Fidelity is not responsible for the
accuracy of such third-party information.

The Basis-point-per-annum fee has been waived on
amounts invested in Non-Fidelity Funds.

3.                                      Annual
Fee for Excess Core Permissible Investment Options

The fees stated in this Service Agreement take into
consideration the Core Permissible Investment options selected by the Employer
in this Service Agreement and include up to 20 Permissible Investment
options with no additional annual fee. The annual fee for each Core Permissible
Investment option in excess of 20 is $500.00 per option and such fee is
in addition to any fees specified elsewhere in this Service Agreement,
including any Appendices and amendments hereto. The annual fee for excess Core
Permissible Investment options shall be billed or charged quarterly in arrears
and paid by the Employer. The Fidelity Freedom funds collectively shall
each count as one Core Permissible Investment option. Any change to the
Permissible Investment options selected by the Employer after the effective
date of this Service Agreement shall require an amendment to this Service
Agreement and may result in amended or additional fees.

Execution Page (Employer’s Copy)

This
Agreement shall be effective upon execution by both parties. By executing this
Agreement, the parties agree to terms and conditions contained in the Agreement
and the following attached Appendices:

	
  Service Agreement

  	
   

  	
  Original

  Effective Date

  	
   

  	
  Revision Date(s)

  
	
  Articles I (Basic Services and Fees)

  	
   

  	
  02/27/2005

  	
   

  	
   

  
	
  Article II (Terms and Conditions)

  	
   

  	
  02/27/2005

  	
   

  	
   

  
	
  Appendix A (Plan Investment Options)

  	
   

  	
   

  	
   

  	
  06/01/2005

  
	
  Appendix B (Enrollment and Education Services)

  	
   

  	
   

  	
   

  	
   

  
	
  Appendix C (Contribution Processing)

  	
   

  	
   

  	
   

  	
   

  
	
  Appendix D (Distribution Processing)

  	
   

  	
   

  	
   

  	
   

  
	
  Appendix E (Miscellaneous)

  	
   

  	
   

  	
   

  	
   

  

 

In
witness whereof, the parties hereto have caused this Agreement to be executed
by their duly authorized officers.

	
  Employer:

  	
   

  	
  Employer:

  
	
   

  	
   

  	
   

  
	
             /s/
  Deborah Woods

  	
   

  	
   

  
	
   

  	
   

  	
  (Signature)

  
	
  (Signature)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
             Deborah
  Woods

  	
   

  	
   

  
	
   

  	
   

  	
  (Print Name)

  
	
  (Print Name)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
             Vice
  President—Human Resources

  	
   

  	
   

  
	
   

  	
   

  	
  (Title)

  
	
  (Title)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
             2-17-05

  	
   

  	
   

  
	
   

  	
   

  	
  (Date)

  
	
  (Date)

  	
   

  	
   

  

 

	
  Note:

  	
  Only one authorized signature is required to execute
  this Agreement unless the Employer’s corporate policy mandates multiple
  authorized signatures.

  

 

	
  Fidelity Management Trust Company:

  
	
   

  
	
             /s/
  Glen J. Kindness

  	
   

  
	
   

  	
   

  
	
  (Signature)

  	
   

  
	
   

  	
   

  
	
             Glen
  J. Kindness

  	
   

  
	
   

  	
   

  
	
  (Print Name)

  	
   

  
	
   

  	
   

  
	
             Authorized
  Signatory

  	
   

  
	
   

  	
   

  
	
  (Title)

  	
   

  
	
   

  	
   

  
	
             February
  29, 2005

  	
   

  
	
   

  	
   

  
	
  (Date)EXHIBIT
10.14

AMENDED
AND RESTATED

EMPLOYMENT AGREEMENT

THIS AMENDED AND RESTATED
EMPLOYMENT AGREEMENT (“Agreement”), made and entered into effective as of the
1st day of January, 2007 (the “Effective Date”), by and between the
CHICAGO BOARD OPTIONS EXCHANGE (“Employer”) and WILLIAM J. BRODSKY (“Employee”),
is an amendment and restatement of the employment agreement previously entered
into between the Employer and Employee dated May 18, 2004 (the “Prior Agreement”).

WITNESSETH:

WHEREAS, Employer and Employee desire to
amend, revise and restate the Prior Agreement;

WHEREAS, Employer desires that Employee
continue to provide services for the benefit of the Employer and its affiliates
and Employee desires to continue such employment with the Employer;

WHEREAS, Employer and Employee acknowledge
that Employee will continue to be a member of the senior management team of
Employer and, as such, will continue to participate in implementing the
Employer’s business plan;

WHEREAS, in the course of employment with
the Employer, Employee has had and will continue to have access to certain
confidential information that relates to or will relate to the business of the
Employer and its affiliates; and

WHEREAS, Employer desires that any such
information not be disclosed to other parties or otherwise used for
unauthorized purposes.

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

1.             Employment.

(a)           Employer shall continue
to employ Employee on the terms hereinafter set forth. Except as set forth in
Section 2 below, Employee shall continue to be employed as Chairman and Chief
Executive Officer for the term of this Agreement. Employee shall perform such
duties as may be prescribed for such offices in the Constitution and Rules of
Employer and those, consistent with the offices of Chairman and Chief Executive
Officer, that may be assigned to him from time to time by the Board of
Directors of Employer (“Board”).

(b)           Employee agrees to
continue to devote his full business time and efforts to the affairs of
Employer and to the performance of his duties as its Chairman and/or Chief

Executive Officer. In
doing so, he agrees to conduct himself at all times in a manner consistent with
the reputation of Employer.

(c)           Employee agrees not to
accept any membership on the board of directors of any private or public
corporation (other than a non-business, not-for-profit, corporation) without
the prior approval of the Board. Employer agrees to grant such approval if, in
the discretion of the Board, such membership will present no conflict of
interest or interference with Employee’s duties as Chairman and/or Chief
Executive Officer of Employer, or any other duties assigned to him pursuant to
Section 2. Employee will be entitled to retain all fees received in connection
with membership on any such board of directors.

2.             Term. The term
of this Agreement shall commence on the Effective Date and shall, unless
earlier terminated in accordance with Section 6 hereof, expire on
December 31, 2009. During the last calendar year of the term of this
Agreement, Employer may employ a successor to Employee. In anticipation of or
because of such event, during such last calendar year, Employee’s title and
duties may be changed by the Board, provided such changed duties shall not be
of the type described in Section 6(c)(iii) below. Any such change in the title
and duties of Employee may be made whether or not a successor to Employee is
employed during such last calendar year, and shall not in any way affect any
other provision of this Agreement. Such change shall not constitute Good Reason
under paragraph (c) of Section 6 or Section 9.

3.             Compensation. Employer
shall pay to Employee for all services to be performed by Employee during the
term of this Agreement:

(a)           A Base Salary at the
rate of $1,400,000, per annum, payable in substantially equal regular
installments in accordance with Employer’s practices for other executives, as
such practices may be determined from time to time.

(b)           In addition to the
aforementioned annual Base Salary, Employee may, for each calendar year of the
term, be entitled to an annual Bonus to reflect the value of his services
during the applicable calendar year. Each such annual Bonus shall be a cash
amount, as determined by the Board in its sole discretion, based upon the
recommendation of the Compensation Committee of the Board (“Committee”). The
Bonus for each calendar year shall be payable to Employee as soon as
practicable after the end of such calendar year, and in any event no later than
April 1 of the year immediately following the calendar year for which it was
earned.

(c)           All payments of Base
Salary and Bonus shall be subject to such deductions as may be required to be
made pursuant to law, government regulation or order, or by agreement with, or
consent of, Employee.

4.             Additional
Benefits.

(a)           Supplemental
Retirement Benefit. Employee shall be entitled to a Supplemental Retirement
Benefit for each calendar year commencing or ending during the term of this
Agreement, with the Supplemental Retirement Benefit for each such calendar year
being equal to:

 2
 

(i)            ten percent (10%) of
Employee’s annual Base Salary for the applicable calendar year, plus

(ii)           a Gross-Up Payment, as
such term is defined in paragraph (l) of this Section 4, in respect
of such Supplemental Retirement Benefit.

The Supplemental
Retirement Benefit for each calendar year shall be paid to Employee as soon as
practicable after the end of such calendar year, and in any event no later than
April 1 of the year immediately following such calendar year.

(b)           Benefit Plans. Employee
shall be entitled to participate in, and receive benefits under, (1) any
qualified or supplemental retirement plan, program or arrangement currently
made available by Employer for its executives, and (2) any such additional
or substitute plan, program or arrangement that Employer may make available in
the future and during the term of this Agreement for its executives (“Benefit
Plans”), subject to and on a basis consistent with the terms, conditions and
overall administration of each such Benefit Plan. If Employee’s employment with
Employer, whether before, at, or after the expiration of the term hereof,
terminates prior to Employee’s full vesting of benefits under any Benefit Plan,
and provided Employee’s employment is not terminated for “Cause” as defined in
Section 6 below, Employee’s rights thereunder shall not be subject to any
forfeiture, but shall be treated as if fully vested under the Benefit Plan, and
Employee shall receive fully vested benefits from either the Benefit Plan,
Employer or both, based upon the Benefit Plan’s then current benefit formula
and limited to Employee’s actual service with Employer and his average earnings
at the date of termination of employment. If Employee shall be terminated for
Cause, whether before, at, or after the expiration of the term hereof, prior to
Employee’s full vesting of benefits under any Benefit Plan, Employee shall be
entitled only to his vested benefit under such Benefit Plan based upon the
terms thereof. Employer shall make a contribution on behalf of Employee under
the Executive Retirement Plan of Employer, or any successor or substitute plan,
pursuant to the terms thereof, for any calendar year ending during the term
hereof, in an amount, if any, as designated by the Board in its sole
discretion; provided, however, that such contribution shall be consistent with
the contributions made for other senior executives of Employer.

Contributions made with
respect to Employee pursuant to the Supplemental Retirement Plan of Employer,
the Executive Retirement Plan of Employer, or any other nonqualified Benefit
Plan at any time during the term hereof maintained by Employer (other than the
Supplemental Retirement Benefit described in paragraph (a) of this
section), shall continue to be contributed by Employer to a trust agreement
established by Employer. Designated officers of Employer are the co-trustees of
such trust agreement and have investment authority with respect to trust
assets; provided that the trustees shall give consideration to investment
guidelines made available by Employee from time to time. Trust assets
attributable to contributions made with respect to Employee and earnings
thereon are subject to creditors of Employer, but are otherwise available only
to pay benefits to Employee and his beneficiaries pursuant to the terms of the
applicable Benefit Plans of Employer and the terms of this Agreement. Contributions
to the trust agreement for each calendar year shall be made as soon as
practicable after the end of such calendar year, and in any event within
90 days after the end of such calendar year.

 3
 

(c)           Memberships and
Business Expenses. Employer will pay or promptly reimburse Employee for the
following:

(i)            all initiation fees,
annual dues and membership expenses in one country club selected and joined by
Employee in which membership is useful for or necessary to the performance of
Employee’s duties hereunder, and all reasonable expenses incurred in
furtherance of, or in connection with the transaction of, the business of
Employer hereunder at such country club;

(ii)           all reasonable
initiation fees, annual dues and membership expenses in such civic,
professional and lunch clubs selected by Employee in which membership is useful
or necessary to the performance of Employee’s duties hereunder, and all
reasonable expenses incurred in furtherance of, or in connection with the
transaction of, the business of Employer hereunder at such civic, professional
and lunch clubs;

(iii)          all reasonable expenses
related to the spouse of Employee when she accompanies Employee on trips
necessary or useful to the performance of Employee’s duties hereunder and where
it is appropriate for such spouse to accompany Employee to further the
performance of his duties; and

(iv)          all other reasonable
business expenses, including automobile expenses, incurred by Employee in the
performance of his duties hereunder.

Employer shall pay a
Gross-Up Payment, as such term is defined in paragraph (l) of this
Section 4, in respect of any payment or reimbursement of expenses
described in this paragraph (c) that is includible in Employee’s income
for income tax purposes.

(d)           Professional
Services. Employee shall be entitled to reimbursement from Employer for his
expenses for professional services, including legal, accounting and investment
advice, relating to his continued employment with Employer and the performance
of duties and reporting obligations related to his employment with Employer,
and management of personal finances, income tax advice, and estate planning
advice. The total reimbursable amount hereunder for each calendar year
commencing or ending during the term of this Agreement shall not exceed the
aggregate of (1) $12,500, plus (2) an amount equal to the excess of
$12,500 over the amount reimbursed hereunder for any preceding calendar year
that is not reimbursed in any other preceding calendar year.

In addition to any
reimbursable amount under the preceding paragraph, Employee shall also be
entitled to reimbursement from Employer for his expenses for legal services in
connection with the negotiation of the terms of this Agreement, in an amount
not to exceed $10,000.

(e)           Administrative
Support. If Employee is employed by Employer on December 31, 2009,
then for a period not to exceed twelve (12) months thereafter, Employer
shall at its expense provide Employee with (1) an office on the premises
of Employer at its principal place of business and (2) reasonable
administrative support staff, which office and support staff shall be
consistent with Employee’s status during the term of this Agreement.

 4
 

(f)            Accounting For
Reimbursements. All of the aforementioned amounts subject to reimbursement
by Employer to Employee pursuant to paragraphs (c) and (d) of this
Section 4 shall be subject to an accounting by Employee and approval by
Employer.

(g)           Parking. Employer
shall provide, without charge, a reserved automobile parking space for the
exclusive use of Employee on the premises of Employer.

(h)           Vacations and
Holidays. Employee shall be entitled to five (5) weeks paid vacation
during each calendar year commencing or ending during the term of this
Agreement. Employee shall also be entitled to all paid holidays given by
Employer to its other executives.

(i)            Insurance Benefits.
Employee and his dependents shall be entitled to participate in, and receive
benefits under, (1) any health and dental plan, disability plan,
accidental death and dismemberment plan, survivor income plan, and life
insurance plan or arrangement currently made available by Employer for its
executives, and (2) any such additional or substitute plan that Employer
may make available in the future and during the term of this Agreement for its
executives (“Insurance Plans”), subject to and on a basis consistent with the
terms, conditions, and overall administration of each such Insurance Plan. At
all times during the term of this Agreement, Employer shall maintain in force
term life insurance coverage on Employee’s life in a face amount that, when
aggregated with the face amount of coverage available under any life insurance
plan or arrangement otherwise maintained by Employer, shall equal
$1.8 million dollars.

(j)            Retiree Medical
Coverage. Employer shall maintain retiree medical coverage for Employee and
his spouse for a period commencing on the date of his termination of employment
with Employer and ending on the date of death of the survivor of Employee and
his spouse on the terms and conditions set forth in this subparagraph (j). Such
retiree medical coverage shall be provided through a retiree medical plan to be
established by Employer for its retired employees and their dependents that
shall provide medical coverage for Employee and his spouse equivalent to that
available to active executives of Employer and their spouses under the health
plan of Employer from time to time in effect. The amount of such retiree
medical coverage for Employee and his spouse shall be reduced by the amount of
any medical coverage available to Employee and/or his spouse from time to time
from any subsequent employer and from Medicare. Employee or his spouse shall
pay the cost of such retiree medical coverage on an after-tax basis and shall
be reimbursed by Employer, within 60 days after the end of each calendar
year, for the cost of such coverage. Employee or his spouse shall also receive,
within 60 days after the end of each calendar year, a Gross-Up Payment, as
such term is defined in paragraph (l) of this Section 4, in respect
of such reimbursement.

(k)           Other Fringe
Benefits. Employee shall be entitled to participate in, and take advantage
of, any other fringe benefits offered from time to time during the term hereof
by Employer to its executives.

(l)            Gross-Up Payments.
For purposes of this Agreement, a “Gross-Up Payment” shall mean an additional
cash amount to be paid to Employee or his spouse in connection with a payment
or reimbursement to Employee or his spouse under paragraphs (a), (c) and
(j) of this Section 4, such that the net amount retained by Employee or
his spouse on such

 5
 

Gross-Up Payment, after
reduction for any federal, state and local income or employment tax (at the
highest applicable marginal rate of taxation for the applicable calendar years)
on the Gross-Up Payment, shall be equal to the federal, state and local income
or employment taxes owed on the payment or reimbursement to Employee or his
spouse under paragraphs (a), (c) and (j) of this Section 4.

5.             Conversion of
Employer to a For-Profit Corporation. In the event that Employer becomes a
For-Profit Corporation during the term of this Agreement, Employer agrees to
negotiate with Employee in good faith with respect to: (1) the grant to
Employee of long-term incentives related to the equity of Employer as a For-Profit
Corporation consistent with such equity grants to comparable executives made by
corporations engaged in similar businesses to that of Employer; and
(2) the adjustment of the terms of this Agreement as is appropriate as a
result of Employer’s status as a For-Profit Corporation; provided that the
total compensation and other benefits available to Employee under this
Agreement are not reduced in the aggregate or adversely affected as a result of
such adjustment. For purposes of this Section 5, Employer shall be deemed
to be a For-Profit Corporation if it converts from a not-for-profit member-owned
corporation to a for-profit shareholder-owned corporation. Further, upon
Employer’s adoption of a stock option or similar equity incentive plan,
Employer shall grant Employee options to purchase shares of its common stock in
amounts and subject to such terms as determined by the Board in its sole
discretion; provided, however, that the amount of options and the terms and
conditions of such options shall be substantially similar to (and not less
favorable to Employee than under) the proposed equity plan that was presented
to the Board at its September 28, 2006 meeting. Options granted to Employee
under such a plan shall provide, among other things, that options shall vest
upon Employee’s retirement after attaining age sixty-five (65), or upon the
occurrence of a Change in Control (as defined in Section 9 below), and all
vested options may thereafter be exercised by Employee for the remainder of
their term. The provisions of the foregoing sentence shall survive the
expiration of the Term of this Agreement.

6.             Termination.

(a)           Termination for
Cause. The Board, by vote of a majority of its members at a meeting at
which Employee is present and given an opportunity to present his views, may
terminate the employment of Employee with Employer at any time for “Cause.” For
purposes of this Agreement, “Cause” shall be deemed to exist if, and only if:

(i)            Employee shall engage,
during the performance of his duties hereunder, in acts or omissions
constituting dishonesty, intentional breach of fiduciary obligation or
intentional wrongdoing or malfeasance;

(ii)           Employee shall
intentionally disobey or disregard a lawful and proper direction of the Board;
or

(iii)          Employee shall
materially breach this Agreement, and such breach by its nature is incapable of
being cured, or such breach remains uncured for more than 30 days
following receipt by Employee of written notice from Employer specifying the
nature of the breach and demanding the cure thereof. For purposes of this
clause (iii), a material

 6
 

breach of this Agreement which involves inattention by
Employee to his duties under this Agreement shall be deemed a breach capable of
cure.

The following shall not
constitute Cause for the termination of the employment of Employee or the
modification or diminution of any of his authority hereunder:

(i)            any personal or policy
disagreement between Employee and Employer or any member of Employer or the
Board; or

(ii)           any action taken by
Employee in connection with his duties hereunder, or any failure to act, if
Employee acted or failed to act in good faith and in a manner he reasonably
believed to be in, and not opposed to, the best interest of Employer, and he
had no reasonable cause to believe his conduct was unlawful.

Notwithstanding anything
herein to the contrary, if Employer shall terminate the employment of Employee
hereunder for Cause, Employer shall give at least 30 days prior written
notice to Employee specifying in detail the reason or reasons for Employee’s
termination. If the employment of Employee with Employer is terminated by
Employer for Cause, Employer shall pay Employee his accrued but unpaid Base
Salary (at the rate most recently determined) through the date of termination
and a Supplemental Retirement Benefit calculated on Employee’s Base Salary
earned through the date of termination, and, except as otherwise provided in
this Agreement or in any Benefit Plan, Insurance Plan, program or arrangement of
Employer, Employer shall have no further obligation to Employee under this
Agreement. Such termination shall have no effect upon Employee’s rights under
the Benefit Plans, the Insurance Plans and the retiree medical coverage
described in paragraph (j) of Section 4 hereof.

(b)           Termination Without
Cause. The Board, by vote of a majority of its members, may terminate the
employment of Employee without Cause, at any time during the term of this
Agreement, as of a date at least 15 days after the date a written notice
of such termination is delivered by Employer to Employee. In such event,
Employer shall, subject to the terms of Section 17 of this Agreement, within
30 days following the date of such termination, pay to Employee:

(i)            his Base Salary (based
on the annual rate in effect on the date of termination) through the date of
termination;

(ii)           a pro-rated Bonus equal
to the Employee’s annual target Bonus for the calendar year in which Employee’s
employment terminates multiplied by a fraction, the numerator of which shall
equal the number of calendar days Employee was employed by Employer for the
year in which his employment terminates and the denominator of which shall
equal 365 (the “Pro-Rated Bonus”);

(iii)          a Supplemental
Retirement Benefit calculated on Employee’s Base Salary earned through the date
of termination; and

(iv)          a lump sum cash
severance payment in an amount equal to the aggregate of:

 7
 

(A)          the greater of
(1) one times Employee’s annual rate of Base Salary in effect on the date
of termination; or (2) the aggregate amount of Base Salary (based on the
annual rate in effect on the date of termination), payable to Employee during
the balance of the term of this Agreement following Employee’s date of
termination;

(B)           the greater of (1) one
times the Employee’s annual target Bonus for the calendar year in which his
employment terminates; or (2) the annual target Bonus for the calendar year in
which his employment terminates, multiplied by the number of years remaining in
the term of this Agreement;

(C)           a Supplemental
Retirement Benefit equal to ten percent (10%) of the aggregate amount payable
under clause (A) above, plus a Gross-Up Payment, as such term is defined
in paragraph (l) of Section 4, in respect of such Supplemental
Retirement Benefit payable pursuant to this clause (C); and

(D)          the aggregate amount of
all Employer contributions that Employee or his account would have received for
a period equal to the greater of one year or the remaining term of this
Agreement under the following employee benefit plans: (1) Chicago Board
Options Exchange SMART Plan; (2) Chicago Board Options Exchange
Supplemental Executive Retirement Plan; and (3) Chicago Board Options
Exchange Executive Retirement Plan, or any successor plan.

In the event Employee is
terminated without Cause during the term of this Agreement, except as otherwise
provided in this Agreement or in any Benefit Plan, Insurance Plan, program or
arrangement of Employer, Employer shall have no further obligation to Employee
under this Agreement. Such termination shall have no effect upon Employee’s
rights under the Benefit Plans, the Insurance Plans and the retiree medical
coverage described in paragraph (j) of Section 4 hereof.

(c)           Voluntary
Termination for Good Reason. Employee may voluntarily terminate his
employment at any time during the term of this Agreement for “Good Reason” as
of a date at least 15 days after the date a written notice of such
termination is delivered by Employee to Employer. For purposes of this
Agreement, “Good Reason” shall be deemed to exist if, and only if, without
Employee’s express written consent, Employer or a successor employer:

(i)            shall change Employee’s
position with Employer or a successor employer from the position of Chairman
and Chief Executive Officer, except as provided in Section 2;

(ii)           shall assign to
Employee duties of an executive nature that are reduced from Employee’s duties
as Chairman and Chief Executive Officer, except as provided in Section 2;

(iii)          shall assign to Employee
duties of a nonexecutive nature or for which Employee is not reasonably
equipped by his skills or experience;

 8

(iv)          shall reduce the Base Salary or the
percentage of Supplemental Retirement Benefit of Employee, or materially reduce
his fringe benefits and perquisites;

(v)           shall require Employee
to relocate his principal business office or his principal place of residence
outside the Chicago metropolitan area, or assign to Employee duties that would
reasonably require such relocation; or

(vi)          shall terminate, reduce
or limit Employee’s bonus opportunity under any bonus or incentive arrangement,
or his participation in any Benefit Plan or Insurance Plan relative to the
bonus opportunity or level of participation of other senior executives of
similar rank, and only to such an extent as to materially reduce the aggregate
value of Employee’s incentive compensation and benefits below their aggregate
value as of the date hereof.

A termination of Employee’s
employment for Good Reason shall be effectuated by giving Employer written
notice of the termination within sixty (60) days of the event constituting Good
Reason, setting forth in reasonable detail the specific conduct of Employer
constituting Good Reason. Notwithstanding anything herein to the contrary, if
Employee shall voluntarily terminate his employment for Good Reason, Employer
shall pay to Employee the same amounts as are applicable with respect to
termination by Employer without Cause under paragraph (b) of this
Section 6, subject to the same terms and conditions set forth under
Section 6(b).

(d)           Voluntary
Termination without Good Reason. Employee may voluntarily terminate his
employment without Good Reason at any time during the term of this Agreement as
of a date at least 30 days after the date a written notice of such
termination is delivered by Employee to Employer. If the employment of Employee
is voluntarily terminated by Employee without Good Reason, Employer shall pay
to Employee the same amounts as are applicable with respect to termination by
Employer for Cause under paragraph (a) of this Section 6.

7.             Death. Except
as otherwise provided in Section 8 below, if Employee dies during the term
of this Agreement, or thereafter but prior to receipt of any amounts to which
Employee is entitled, Employer agrees:

(a)           to pay Employee the
same amounts as are applicable with respect to termination by Employer without
Cause under Paragraph (b) of Section 6, subject to the same terms and
conditions set forth under Section 6(b); and

(b)           to provide retiree
medical coverage to the surviving spouse of Employee, if any, pursuant to the
provisions of paragraph (j) of Section 4 above.

8.             Disability.

(a)           If Employee is “Permanently
Disabled” for a continuous period of six (6) months, Employer may
terminate Employee’s employment under this Agreement upon written notice to
Employee. In such event:

 9
 

(i)            Employee shall be paid
the same amounts as are applicable with respect to termination by Employer
without Cause under Paragraph (b) of Section 6, subject to the same terms and
conditions set forth under Section 6(b); and

(ii)           Employee shall receive
a monthly disability payment in the amount of $50,000, commencing with the
month following the month through which payments are made pursuant to
clause (i) next above and ending with the first to occur of the month in
which Employee attains age 65 and the month in which Employee dies. Payments pursuant
to this clause (ii) shall be made by Employer and/or pursuant to a long-term
disability policy purchased by Employer from an insurance company it selects
with respect to Employee. Such payments shall be reduced by any payments made
to Employee pursuant to any long-term disability insurance policy or plan
maintained by Employer for its executives.

(b)           For purposes of this
Agreement, the term Permanently Disabled shall have the meaning set forth in
the long-term disability policy or plan maintained by Employer for its
executives then in effect, or if no such policy or plan is then in effect,
shall mean a condition of bodily injury or disease or mental disorder that
prevents Employee from performing the principal duties of his employment
hereunder, as determined by an independent physician selected with the approval
of both Employer and Employee.

9.             Change in Control.

(a)           If during the eighteen
(18) month period following a Change in Control that occurs during the
term of this Agreement (1) Employee is terminated by Employer or a
successor employer without Cause, or (2) Employee voluntarily terminates
his employment with Employer or a successor employer for Good Reason, Employee
shall receive, within 30 days following the date of such termination and
in lieu of and in complete satisfaction of any other payments described under
Sections 6(b) or (c) of this Agreement and subject to Section 17 of this
Agreement:

(i)            his accrued but unpaid
Base Salary (based on the annual rate in effect on the date of termination)
through the date of termination;

(ii)           the Pro-Rated Bonus;

(iii)          a Supplemental
Retirement Benefit calculated on Employee’s Base Salary earned through the date
of termination; and

(iv)          a lump sum cash
severance payment in an amount equal to the aggregate of:

(A)          three times Employee’s
annual rate of Base Salary in effect on the date of termination and three times
the Employee’s annual target Bonus for the calendar year in which Employee’s
employment terminates, if the Change in Control occurs during 2007; two times
Employee’s annual rate of Base Salary in effect on the date of termination and
two times the Employee’s annual target Bonus for the calendar year in which
Employee’s employment terminates, if the

 10
 

Change in Control occurs during 2008; and one times
Employee’s annual rate of Base Salary in effect on the date of termination and
one times the Employee’s annual target Bonus for the calendar year in which
Employee’s employment terminates, if the Change in Control occurs during 2009.

(B)           a Supplemental
Retirement Benefit equal to ten percent (10%) of the Base Salary payable under
clause (A) above, plus a Gross-Up Payment, as such term is defined in
paragraph (l) of Section 4, in respect of such Supplemental
Retirement Benefit payable pursuant to this clause (C); and

(C)           the aggregate amount of
all Employer contributions that Employee or his account would have received for
a period equal to three (3) years (if the Change in Control occurs during
2007), two (2) years (if the Change in Control occurs during 2008), or one (1)
year (if the Change in Control occurs during 2009), under the following
employee benefit plans: (1) Chicago Board Options Exchange SMART Plan;
(2) Chicago Board Options Exchange Supplemental Executive Retirement Plan;
and (3) Chicago Board Options Exchange Executive Retirement Plan, or any
successor plan.

For purposes of this
Agreement, a “Change in Control” of Employer shall be deemed to occur on the
effective time of (1) a merger or consolidation of Employer with one or
more other entities or corporations as a result of which holders of
memberships, seats or outstanding capital stock of Employer entitled to vote
for the election of directors (“Voting Stock”) of Employer immediately prior to
such merger hold less than 50% of the Voting Stock of the surviving or
resulting corporation or entity, or (2) a transfer of substantially all of
the property of Employer other than to a corporation or an entity of which
Employer owns at least 50% of the Voting Stock. Payments pursuant to this Section 9
shall be in lieu of any amounts otherwise payable under Section 6.

(b)           If there is a Change in
Control of Employer at anytime while Employee is employed by Employer or during
the six month period following a termination of Employee’s employment (other
than a termination for Cause), Employee shall be entitled to a bonus payment in
an amount as determined by the Board, which shall not be less than the value of
the options described in Section 5 above based upon the Towers Perrin report
delivered to the Board in September 2006 (the “Sale Bonus”), provided that such
Sale Bonus shall be reduced (but not below zero) by the value of options that
vest upon the occurrence of a Change in Control. The foregoing notwithstanding,
the Sale Bonus shall only be payable so long as Employer has not consummated an
Initial Public Offering prior to the date of the applicable Change in Control. An
“Initial Public Offering” shall be deemed to occur upon the first sale of common stock by Employer to underwriters for the
account of Employer pursuant to a registration statement under the Securities
Act of 1933, as amended, filed with and declared effective by the Securities
and Exchange Commission, with minimum net proceeds of Fifty Million Dollars
($50,000,000). Subject to the terms of Section 17, the Sale Bonus shall
be payable in full within thirty days following the Change in Control.

(c)           In the event that a
Change in Control shall occur, and a final determination is made by
legislation, regulation, ruling directed to Employee or Employer, by court
decision, or

 11
 

by independent tax
counsel described in paragraph (d) next below, that the aggregate amount
of any payment made to Employee (1) under this Agreement, and
(2) pursuant to any Benefit Plan, Insurance Plan or plan, program or
policy of Employer in connection with, on account of, or as a result of, such
Change in Control (“Total Payments”) will be subject to the excise tax
provisions of Section 4999 of the Code, or any successor section thereof,
Employee shall be entitled to receive from Employer, in addition to any other
amounts payable hereunder, a lump sum payment (the “Excise Tax Gross-Up Payment”)
sufficient to cover the full cost of such excise taxes and Employee’s federal,
state and local income and employment taxes on the Excise Tax Gross-Up Payment,
so that the net amount retained by Employee, after the payment of all such
excise taxes on the Total Payments, and all federal, state and local income and
employment taxes and excise taxes on the Excise Tax Gross-Up Payment (at the
highest applicable marginal rate of taxation for the applicable calendar
years), shall be equal to the Total Payments. Except as provided in
paragraphs (a), (c), (j) and (l) of Section 4, the Total Payments
shall be subject to any federal, state and local income and employment taxes
thereon. The Gross-Up Payment shall be made at the same time as the payments
described in clauses (1) and (2) of this paragraph (c).

(d)           Employer and Employee
shall mutually and reasonably determine the amount of the Excise Tax Gross-Up
Payment to be made to Employee pursuant to the preceding paragraph (c). Prior
to the making of any such Excise Tax Gross-Up Payment, either party may request
a determination as to the amount of such Excise Tax Gross-Up Payment. If such a
determination is requested, it shall be made promptly, at Employer’s expense,
by independent tax counsel selected by Employee and approved by Employer (which
approval shall not be unreasonably withheld), and such determination shall be
conclusive and binding on all parties. Employer shall provide such information
as such counsel may reasonably request, and such counsel may engage accountants
or other experts at Employer’s expense to the extent that they deem necessary
or advisable to enable them to reach a determination. The term “independent tax
counsel,” as used herein, shall mean a law firm of recognized expertise in
federal income tax matters that has not previously advised or represented
either party. It is hereby agreed that neither Employer nor Employee shall
engage any such firm as counsel for any purpose, other than to make the
determination provided for herein, for three years following such firm’s
announcement of its determination.

(e)           In the event the
Internal Revenue Service subsequently adjusts the excise tax computation made
pursuant to paragraphs (c) and (d) of this Section 9, Employer shall
pay to Employee, or Employee shall pay to Employer, as the case may be, the
full amount necessary to make either Employee or Employer whole had the excise tax
initially been computed as subsequently adjusted, including the amount of any
underpaid or overpaid excise tax, and any related interest and/or penalties due
to the Internal Revenue Service.

10.           Restrictive Covenant.
During the term of his employment, and, if Employee’s employment is terminated
pursuant to Sections 6(a), 6(b), 6(c), 6(d), 8 or 9, for a period of two years
following the termination of his employment (except for non-renewal of the
Term), Employee shall not:

(a)           singly, jointly, or in
any other capacity, directly or beneficially, manage, join, participate in the
management, operation or control of, or work for (as an employee, consultant or
independent contractor), or permit the use of his name by, or provide financial
or

 12
 

other assistance to, or
be connected in any manner with, any securities or futures exchange,
alternative trading system or electronic communications network (including any
derivatives market) providing for the trading of securities or futures
derivatives, located in the United States or any other country, or any
affiliate thereof, or any direct competitor of Employer, without the express
written approval of the Board of Employer. Employer shall have the sole and
exclusive authority to determine whether an entity is a direct competitor of
Employer for purposes of this Section 10;

(b)           provide any service or
assistance which (i) is of the general type of service or assistance provided
by Employee to Employer, (ii) relates to any technology, account, product,
project or piece of work, with which Employee was involved during his
employment with Employer, and (iii) contributes to causing an entity to come
within the definition described in paragraph (a) above;

(c)           interfere with the
relationship of Employer and any of its employees, agents or representatives;
or

(d)           directly or indirectly
divert or attempt to divert from Employer any business in which Employer has
been actively engaged during the term hereof, nor interfere with the
relationships of Employer with its sources of business.

11.           Confidentiality.
Employee acknowledges that Employer may disclose secret or confidential
information to Employee during the term of this Agreement to enable him to
perform his duties hereunder. Employee agrees that, subject to the following
sentence, he shall not during the term of this Agreement (except in connection
with the proper performance of his duties hereunder) and thereafter, without
the prior written consent of Employer, disclose to any person or entity any
secret or confidential information concerning the business of Employer that was
obtained by Employee in the course of his employment by Employer. This
paragraph shall not be applicable if and to the extent Employee is
required to testify in a legislative, judicial or regulatory proceeding
pursuant to an order of Congress, any state or local legislature, a judge, or
an administrative law judge, or if such secret or confidential information is
required to be disclosed by Employee by any law, regulation or order of any
court or regulatory commission, department or agency. Employee further agrees
that if his employment by Employer is terminated for any reason, he will not
take with him, but will leave with Employer, all records and papers and all
matter of whatever nature that bears secret or confidential information of
Employer. For purposes of this Agreement, the term “secret or confidential
information” shall include, but not be limited to, any and all records, notes,
memoranda, data, writings, research, personnel information, customer information,
clearing members’ information, Employer’s financial information and plans,
processes, methods, techniques, systems, formulas, patents, models, devices,
compilations or any other information of whatever nature in the possession or
control of Employer, that has not been published or disclosed to the general
public, the options industry or the commodities futures industry; provided that
such term shall not include knowledge, skills, and information that is common
to the trade or profession of Employee. If Employee fails to comply with any
provision of this Section 11, which failure (1) is inadvertent or
unintentional, (2) occurs notwithstanding Employee’s good faith effort to
comply with this Section 11 and (3) does not, and is not likely to,
result in significant loss to Employer, then such

 13
 

failure shall not
constitute a violation of any provision, covenant or agreement of this
Section 11 for purposes of this Agreement, including Sections 6 and 12
hereof.

12.           Remedies. Employee
consents and agrees that if, during the term of this Agreement, he violates any
provisions of Sections 10 or 11 of this Agreement, Employer or its
successors in interest shall be entitled, in addition to any other remedies
that they may have, including money damages, to an injunction to be issued by a
court of competent jurisdiction, restraining him from committing or continuing
any violation of Sections 10 or 11 of this Agreement.

If, at any time, Employee
violates, to any material extent, any of the covenants or agreements set forth
in Sections 10 or 11 of this Agreement, Employer shall have the right to
terminate the employment of Employee for Cause in accordance with the
provisions of paragraph (a) of Section 6.

13.           Indemnity. Employer
shall indemnify, protect, defend and save Employee harmless from and against
any threatened, pending, contemplated or completed action, suit or proceeding,
whether civil, criminal, administrative or investigative, in which Employee is
made a party by reason of the fact that Employee is an officer, employee or
agent of Employer, or any judgment, amount paid in settlement (with the consent
of Employer), fine, loss, expense, cost, damage and reasonable attorneys’ fees
incurred by reason of the fact that Employee is an officer, employee or agent
of Employer; provided, however, that Employee acted in good faith and in a
manner he reasonably believed to be in the best interests of Employer, and with
respect to any criminal action or proceeding, had no reasonable cause to
believe his conduct was unlawful. Employer, at its expense, shall have the
right to purchase and maintain insurance or fidelity bonds on behalf of
Employee against any liability asserted against him and incurred by him in his
capacity as an officer, employee or agent of Employer. Employee shall also be
indemnified under Employer’s Articles of Incorporation and By-Laws, and covered
by directors’ and officers’ liability insurance policies that are the same as
or equivalent to those Employer currently carries for its other executives.

14.           Assignment. Neither
Employee nor Employer may assign this Agreement, except that Employer’s
obligations hereunder shall be binding legal obligations of any successor to
all or substantially all of Employer’s business by purchase, merger,
consolidation, or otherwise.

15.           Employee Assignment.
No interest of Employee or his spouse or any other beneficiary under this
Agreement, or any right to receive any payment or distribution hereunder, shall
be subject in any manner to sale, transfer, assignment, pledge, attachment,
garnishment, or other alienation or encumbrance of any kind, nor may such
interest or right to receive a payment or distribution be taken, voluntarily or
involuntarily, for the satisfaction of the obligations or debts of, or other
claims against, Employee or his spouse or any other beneficiary, including
claims for alimony, support, separate maintenance, and claims in bankruptcy
proceedings.

16.           Benefits Unfunded.
Except as otherwise provided in paragraph (b) of Section 4:
(1) all rights of Employee and his spouse or any other beneficiary under
this Agreement shall at all times be entirely unfunded and no provision shall
at any time be made with respect to segregating any assets of Employer for
payment of any amounts due hereunder, and (2) neither

 14
 

Employee nor his spouse
or any other beneficiary shall have any interest in or rights against any
specific assets of Employer, and Employee and his spouse or any other
beneficiary shall have only the rights of a general unsecured creditor of
Employer.

17.           Release. As a
condition to receiving the payments under Sections 6, 8 and 9 of this
Agreement, Employee agrees to execute a release of claims (in a form
substantially similar to the form set forth in Exhibit A which is attached
hereto and made a part hereof) at the time such payments commence. Upon
Employer’s receipt of Employee’s executed release of claims, Employer shall
promptly commence payment of Employee’s payments. Notwithstanding the foregoing
or anything herein to the contrary, if Employee is or becomes a “specified
employee” as such term is defined under Section 409A of the Code and the
regulations and guidance promulgated thereunder, the payment of any amounts
under Sections 6 or 9 of this Agreement shall be delayed by a period of six (6)
months following Employee’s separation from employment if necessary to ensure
such payments are not subject to the penalties and interest under Section 409A.

18.           Waiver. No
waiver by either party at any time of any breach by the other party of, or
compliance with, any condition or provision of this Agreement to be performed
by the other party shall be deemed a waiver of any other provisions or
conditions at the same time or at any prior or subsequent time.

19.           Applicable Law. This
Agreement shall be construed and interpreted pursuant to the internal laws of
the State of Illinois, without regard to principles of conflicts of laws.

20.           Compliance. It
is intended that any amount payable under this Agreement will comply with
Section 409A of the Code, and regulations and guidance relating thereto, so as
not to subject Employee to the payment of any interest and tax penalty which
may be imposed under Section 409A of the Code, provided, however, that Employer
shall not be responsible for any such interest and tax penalties. If any
provision of this Agreement needs to be revised to satisfy the requirements of
Section 409A of the Code, then such provision shall be modified or restricted
to the extent and in the manner necessary to be in compliance with such
requirements of the Code and any such modification will attempt to maintain the
same economic results as were intended under this Agreement.

21.           Entire Agreement.
This Agreement contains the entire agreement between Employer and Employee and
supersedes any and all previous agreements, written or oral, between the
parties relating to the subject matter hereof, including, but not limited to,
the Prior Agreement. No amendment or modification of the terms of this
Agreement shall be binding upon either of the parties hereto unless reduced to
writing and signed by each of the parties hereto.

22.           Counterparts. This
Agreement may be executed in counterparts, each of which shall be deemed an
original.

23.           Severability.
The parties agree that this Agreement shall be construed in a way to make each
of its provisions enforceable, but that the unenforceability of one or more
provisions in one or more instances will not make invalid the entire Agreement
or any other provisions of

 15
 

this Agreement as all of
its provisions are severable. In the event a provision may be unenforceable as
written, the parties agree that it shall be partially enforced to the extent
permitted by law. The unenforceability of a provision in one instance shall not
affect its enforceability in other instances.

24.           Successors. This
Agreement shall be binding upon, and inure to the benefit of, the parties
hereto and their respective heirs, representatives and successors.

25.           Notices. Notices
required under this Agreement shall be in writing and sent by registered
U.S. mail, return receipt requested, to the following addresses or to such
other address as the party being notified may have previously furnished to the
other by written notice:

	
  

  	
  If to Employer:

  
	
   

  
	
   

  	
  Alan J. Dean, Executive Vice President

  
	
   

  	
        and Chief
  Financial Officer

  
	
   

  	
  Chicago Board Options Exchange

  
	
   

  	
  400 S. LaSalle Street

  
	
   

  	
  Chicago, Illinois 60605

  
	
   

  	
   

  
	
  

  	
  If to Employee:

  
	
   

  
	
   

  	
  William J. Brodsky

  
	
   

  	
  1223 North Astor Street

  
	
   

  	
  Chicago, Illinois 60610-2314

  
	
   

  
	
   

  	
  With a copy to:

  
	
   

  
	
   

  	
  Philip L. Mowery

  
	
   

  	
  Vedder Price Kaufman & Kammholz

  
	
   

  	
  222 North LaSalle Street, Suite 2600

  
	
   

  	
  Chicago, Illinois 60601

  
			

 

 16
 

26.           Headings. The
headings contained herein are for reference purposes only and shall not in any
way affect the meaning or interpretation of any provision of this Agreement.

IN
WITNESS WHEREOF, Employee has hereunto set his hand, and
Employer has caused these presents to be executed in its name on its behalf,
all as of the date first above written.

	
  

  	
  Chicago Board Options Exchange

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Eugene S. Sunshine

  	
   

  
	
   

  	
   

  	
  Eugene S. Sunshine

  
	
   

  	
   

  	
  Title:

  	
  Chairman of the Compensation

  
	
   

  	
   

  	
   

  	
  Committee of the Board of Directors

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ William J. Brodsky

  	
   

  
	
   

  	
  William J. Brodsky

  
					

 

 17

Exhibit
A

RELEASE
OF CLAIMS

THIS
RELEASE OF CLAIMS (“Release”) is made and entered into this
     day of
          ,
200   , to be effective as
of                       (the
“Effective Date”), by and between CHICAGO BOARD OPTIONS EXCHANGE, INCORPORATED,
a Delaware corporation (“CBOE”), and WILLIAM J. BRODSKY, a resident of the
State of Illinois (“Brodsky”).

1.             In consideration of
CBOE’s agreement to provide Brodsky with the severance pay and benefits
described in Sections 6,8, and 9 of the attached Amended and Restated
Employment Agreement by and between CBOE and Brodsky (the “Employment Agreement”),
to which Brodsky is not otherwise entitled and the sufficiency of which Brodsky
acknowledges, Brodsky does hereby fully, finally and unconditionally release
and forever discharge CBOE and CBOE’s former and current officers, directors,
employees, members, representatives and agents and all of their respective
predecessors, successors, and assigns (collectively “Released Parties”), in
their personal, corporate and representative capacities, from any and all
rights, claims, liabilities, obligations, damages, costs, expenses, attorneys’
fees, suits, actions, and demands, of any and every kind, nature and character,
known or unknown, liquidated or unliquidated, absolute or contingent, in law
and in equity, enforceable or arising under any local, state or federal common
law, statute or ordinance relating to Brodsky’s past employment with CBOE or
any past actions, statements, or omissions of CBOE or any of the Released Parties
occurring prior to Brodsky’s execution of this Release, including but not
limited to all claims for defamation, wrongful termination, back pay and
benefits, pain and suffering, negligent or intentional infliction of emotional
distress, breach of contract, and interference with contractual relations, tort
claims, employment discrimination claims, and all claims arising under the Age
Discrimination in Employment Act of 1967, as amended (“ADEA”), Title VII of the
Civil Rights Act of 1964, as amended, the Civil Rights Act of 1866, as amended
by the Civil Rights Act of 1991 (42 U.S.C. § 1981), the Family and Medical
Leave Act, the Equal Pay Act, the Fair Labor Standards Act, the Americans with
Disabilities Act, the Older Workers Benefit Protection Act, the Illinois Human
Rights Act, the Workers Adjustment and Retraining Act, and the Chicago and Cook
County Human Rights Ordinances, and any other statutory, contract, implied
contract, or common law claim arising out of or involving Brodsky’s employment,
the termination of Brodsky’s employment, or any continuing effects of Brodsky’s
employment with CBOE.

2.             Brodsky agrees not to
sue CBOE or any of the Released Parties with respect to rights and claims
covered by this Release. If any government agency or court assumes jurisdiction
of any charge, complaint, or cause of action covered by this Release, Brodsky
will not seek and will not accept any personal equitable or monetary relief in
connection with such investigation, action, suit, or legal proceeding.

3.             Brodsky has forty-five
(45) days
(until                )
within which to consider this Release, although Brodsky may accept it at any
time within those forty-five (45) days. Once Brodsky has signed this Release,
Brodsky will still have seven (7) days in which to revoke his acceptance of the
ADEA portion of the Release by notifying CBOE, and specifically,

 A-1
 

Deborah Woods,
Human Resources Department. The ADEA portion of the Release will not be
effective or enforceable until the seven (7) day revocation period has expired.
If the ADEA portion of the Release is revoked, the remainder of this Release
shall remain in full force and effect as to all of its terms except for the
release of claims under the ADEA, and CBOE will have three (3) business days to
rescind the entire Release by so notifying Brodsky.

4.             Brodsky agrees that
he will continue to be governed by those obligations arising under Paragraphs
10, 11 and 12 of the Employment Agreement, which are incorporated by reference
herein, shall not be released, shall be unaffected hereby, and shall remain in
full force and effect.

5.             This Release shall be
binding upon and inure to the benefit of CBOE and its successors and assigns
and Brodsky and his heirs, executors and administrators.

6.             This Release shall be
construed and interpreted under the laws of the State of Illinois to the extent
not preempted by applicable laws of the United States.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  William J. Brodsky

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
  CHICAGO BOARD OPTIONS EXCHANGE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
						

 

 A-2

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