Document:

EX-10.1

 

Exhibit 10.1

The Goldman Sachs Amended and Restated Restricted Partner Compensation Plan

Section 1. Purposes. The purpose of the Goldman Sachs Amended and Restated Restricted Partner
Compensation Plan (the “Plan”) is to attract, retain and motivate selected employees of The Goldman
Sachs Group, Inc. (“GS Inc.”) and its subsidiaries and affiliates (together with GS Inc., and their
and its successors, the “Firm”) who are executive officers of GS Inc. or members of the Firm’s
Management Committee (and any successor or successors thereto) in order to promote the Firm’s
long-term growth and profitability. It is also intended that all Bonuses (as defined in Section
5(a)) payable under the Plan be considered “performance-based compensation” within the meaning of
Section 162(m)(4)(C) of the Internal Revenue Code of 1986, as amended (the “Code”), and the
regulations thereunder, and the Plan shall be interpreted accordingly.

The amendments made to the Goldman Sachs Restricted Partner Compensation Plan, as in effect
prior to the effectiveness of the Plan pursuant to Section 7(o) (the “2003 Plan”), pursuant to this
amendment and restatement shall affect only Bonuses relating to Contract Periods commencing on or
after November 26, 2005, and the amendments to the 2003 Plan do not, and are not intended to,
affect any Bonus relating to any prior period.

Section 2. Administration.

(a) Subject to Section 2(d), the Plan shall be administered by a committee (the “Committee”)
appointed by the Board of Directors of GS Inc. (the “Board”), whose members shall serve at the
pleasure of the Board. The Committee at all times shall be composed of at least two directors of GS
Inc., each of whom is an “outside director” within the meaning of Section 162(m) of the Code and
Treasury Regulation Section 1.162-27(e)(3) and a “non-employee director” within the meaning of Rule
16b-3 promulgated under the Securities Exchange Act of 1934, as amended. Unless otherwise
determined by the Board, the Committee shall be the Compensation Committee of the Board.

(b) The Committee shall have complete control over the administration of the Plan, and shall
have the authority in its sole and absolute discretion to: (i) exercise all of the powers granted
to it under the Plan; (ii) construe, interpret and implement the Plan and each Contract Period
Schedule (as defined in Section 4(a)); (iii) prescribe, amend and rescind rules and regulations
relating to the Plan, including rules and regulations governing its own operations; (iv) make all
determinations necessary or advisable in administering the Plan (including, without limitation,
calculating the size of the Bonus payable to each Participant (as
defined in Section 4(a))); (v)
correct any defect, supply any omission and reconcile any inconsistency in the Plan and any
Contract Period Schedule; and (vi) amend the Plan and any Contract Period Schedule to reflect
changes in or interpretations of applicable law, rules or regulations.

(c) The determination of the Committee on all matters relating to the Plan and any amounts
payable thereunder shall be final, binding and conclusive on all parties.

(d) Notwithstanding anything to the contrary contained herein, the Committee may allocate
among its members and may delegate some or all of its authority or administrative responsibility to
such individual or individuals who are not members of the Committee as it shall deem necessary or
appropriate; provided, however, the Committee may not delegate any of its authority or
administrative responsibility hereunder (and no such attempted delegation shall be effective) if
such delegation would cause any Bonus payable under the Plan not to be considered

1

 

performance-based compensation within the meaning of Section 162(m)(4)(C) of the Code and the
regulations thereunder, and any such attempted delegation shall be void ab initio.

(e) No member of the Board or the Committee or any employee of the Firm (each such person a
“Covered Person”) shall have any liability to any person (including, without limitation, any
Participant) for any action taken or omitted to be taken or any determination made in good faith
with respect to the Plan or any Bonus. Each Covered Person shall be indemnified and held harmless
by GS Inc. against and from any loss, cost, liability or expense (including attorneys’ fees) that
may be imposed upon or incurred by such Covered Person in connection with or resulting from any
action, suit or proceeding to which such Covered Person may be a party or in which such Covered
Person may be involved by reason of any action taken or omitted to be taken under the Plan or in
connection with any Contract Period Schedule and against and from any and all amounts paid by such
Covered Person, with GS Inc.’s approval, in settlement thereof, or paid by such Covered Person in
satisfaction of any judgment in any such action, suit or proceeding against such Covered Person,
provided that GS Inc. shall have the right, at its own expense, to assume and defend any such
action, suit or proceeding and, once GS Inc. gives notice of its intent to assume the defense, GS
Inc. shall have sole control over such defense with counsel of GS Inc.’s choice. The foregoing
right of indemnification shall not be available to a Covered Person to the extent that a court of
competent jurisdiction in a final judgment or other final adjudication, in either case, not subject
to further appeal, determines that the acts or omissions of such Covered Person giving rise to the
indemnification claim resulted from such Covered Person’s bad faith, fraud or willful criminal act
or omission. The foregoing right of indemnification shall not be exclusive of any other rights of
indemnification to which Covered Persons may be entitled under GS Inc.’s Restated
Certificate of Incorporation or Amended and Restated Bylaws, as a matter of law, or otherwise, or
any other power that GS Inc. may have to indemnify such persons or hold them harmless.

Section 3. Contract Period. The Plan shall operate for successive periods (each a “Contract
Period”). The first Contract Period shall commence on November 26, 2005 and shall terminate on
November 24, 2006. Thereafter, each Contract Period shall be one full fiscal year and/or portions
of fiscal years to the extent consistent with Treasury Regulation Section 1.162-27(e)(2), as
determined by the Committee.

Section 4. Participation; Contract Period Schedule.

(a) Prior to the earlier of (i) the last day of GS Inc.’s first fiscal quarter in a Contract
Period or (ii) the 90th day after the beginning of the Contract Period, or otherwise in a manner
not inconsistent with Treasury Regulation Section 1.162-27(e)(2) (the “Establishment Date”), the
Committee shall designate those individuals who shall participate in the Plan for each Contract
Period (the “Participants”). The names of the Participants shall be set forth on a schedule (the
“Contract Period Schedule”). No individual who is a Participant shall, at the same time, be a
participant in The Goldman Sachs Partner Compensation Plan.

(b) Unless otherwise provided in the Contract Period Schedule and except as provided below,
the Committee shall have the authority at any time (i) during the Contract Period to remove
Participants from the Plan for that Contract Period and (ii) prior to the Establishment Date to add
Participants to the Plan for a particular Contract Period. The Committee shall amend the Contract
Period Schedule to reflect an individual’s addition to, or removal from, the Plan.

2

 

Section 5. Bonus Amounts.

With respect to each Contract Period, each Participant shall be paid a bonus amount equal to
the Firm’s “Pre-Tax Earnings” (as defined in Section 5(c)) for such Contract Period multiplied by
the “Specified Percentage” (as defined in Section 5(d)) for such Contract Period. Notwithstanding
anything to the contrary in this Plan, the Committee may, in its sole discretion, reduce the bonus
amount for any Participant for a particular Contract Period at any time prior to the payment of
bonuses to Participants pursuant to Section 6 (a Participant’s bonus amount for each Contract
Period, as so reduced, the “Bonus”).

(i) If a Participant’s employment with the Firm terminates for any reason before the end of a
Contract Period, unless otherwise provided in the Contract Period Schedule, the Committee shall
have the discretion to determine whether (i) such Participant shall be entitled to any Bonus at
all, (ii) such Participant’s Bonus shall be reduced on a pro-rata basis to reflect the portion of
such Contract Period the Participant was employed by the Firm or (iii) to make such other
arrangements as the Committee deems appropriate in connection with the termination of such
Participant’s employment.

(ii) For purposes of this Section 5, “Pre-Tax Earnings” shall mean the Firm’s pre-tax earnings
as reported in its audited consolidated financial statements for the relevant fiscal year, adjusted
to eliminate, with respect to such fiscal year:

(1) gains or losses that are the direct result of a major casualty or natural
disaster;

(2) gains or losses that are separately disclosed and result from any newly-enacted
law, regulation, judicial order or accounting pronouncement; and

(3) amounts related to (i) exit or disposal activities, (ii) the impairment or
disposal of long-lived assets or the impairment of goodwill and other intangible assets,
(iii) net provisions for litigation and other regulatory proceedings, (iv) equity-based or
other employee retention awards granted in connection with any acquisition, and (v) items
that are unusual in nature or infrequent in occurrence and are separately disclosed;

provided, however, that for purposes of calculating Pre-Tax Earnings, the Firm’s pre-tax
earnings as reported in its audited consolidated financial statements will only be adjusted
for items (1) through (3) above if the net effect of such items, in the aggregate, changes
pre-tax earnings as reported by at least 5%. The above adjustments to Pre-Tax Earnings
shall be computed in accordance with GAAP. Following the completion of each Contract Period
and prior to any Bonus payment, the Committee shall certify in writing the Firm’s Pre-Tax
Earnings for such Contract Period.

(iii) For purposes of this Section 5, “Specified Percentage” shall be determined as follows:

(1) for the Contract Period commencing on November 26, 2005 and terminating on
November 24, 2006, the Specified Percentage shall be equal to 0.6%; and

(2) for any subsequent Contract Period, the Specified Percentage shall be equal to the
Specified Percentage for the immediately preceding Contract Period multiplied by 115%;
provided, however, that in no event shall the Specified Percentage for any Contract Period
exceed 1%.

Section 6. Payment of Bonus Amount; Voluntary Deferral. Unless otherwise provided in the
Contract Period Schedule, each Participant’s Bonus shall be payable by such Participant’s

3

 

Participating Employer (as defined in Section 7(k)), or in the case of a Participant employed by
more than one Participating Employer, by each such employer as determined by the Committee. The
Bonus shall be payable in the discretion of the Committee in cash and/or an equity-based award of
equivalent value (provided that in determining the number of GS Inc. restricted stock units,
restricted shares of GS Inc. common stock or unrestricted shares of GS Inc. common stock that is
equivalent to a dollar amount, that dollar amount shall be divided by the average of the closing
prices of GS Inc. common stock over the last 10 trading days in the applicable fiscal year (with
fractional shares being rounded to the nearest whole share)). The cash portion of the Bonus shall
be paid at such time as bonuses are generally paid by the Participating Employer(s) for the
relevant fiscal year in U.S. dollars or, if the Participant is located outside the United States,
in U.S. dollars or local currency (as determined by the Committee) based upon such conversion rates
as the Committee determines are appropriate (and the payments made under this Plan may, at the
Committee’s discretion, be subject to tax equalization or similar policies). Subject to approval by
the Committee and to any requirements imposed by the Committee in connection with such approval,
each Participant may be entitled to defer receipt, under the terms and conditions of any applicable
deferred compensation plan of the Firm, of part or all of any payments otherwise due under this
Plan. Any equity-based award shall be subject to such terms and conditions (including vesting
requirements) as the Committee and the administrative committee of the plan under which such
equity-based Award is granted may determine.

Section 7. General Provisions.

(a) Amendment, Termination, etc. Unless otherwise provided in the Contract Period Schedule,
(i) the Board reserves the right at any time and from time to time to modify, alter, amend,
suspend, discontinue or terminate the Plan and any Contract Period Schedule in any respect
whatsoever, including in any manner that adversely affects the rights of Participants, and (ii) the
Committee may amend the Contract Period Schedule in any manner it determines. No Participant shall
have any rights to payment of any amounts under this Plan unless and until the Committee determines
the amount of such Participant’s Bonus, that such Bonus shall be paid and the method and timing of
its payment. If and to the extent the Board determines that the Bonuses under the Plan should
constitute performance-based compensation within the meaning of Section 162(m)(4)(C) of the Code,
no amendment that would require stockholder approval in order for Bonuses paid pursuant to the Plan
to constitute performance-based compensation within the meaning of Section 162(m)(4)(C) of the Code
shall be effective without the approval of the stockholders of GS Inc. as required by Section
162(m) of the Code and the regulations thereunder.

(b) Nonassignability. No rights of any Participant (or of any beneficiary pursuant to this
Section 7(b)) under the Plan may be sold, exchanged, transferred, assigned, pledged, hypothecated
or otherwise disposed of (including through the use of any cash-settled instrument), either
voluntarily or involuntarily by operation of law, other than by will or by the laws of descent and
distribution. Any sale, exchange, transfer, assignment, pledge, hypothecation or other disposition
in violation of the provisions of this Section 7(b) shall be void. In the event of a Participant’s
death, any amounts payable under the Plan shall be paid in accordance with the Plan and the
Contract Period Schedule to a Participant’s estate. A Participant’s estate shall have no rights
under the Plan or any Contract Period Schedule other than the right, subject to the immediately
preceding sentence, to receive such amounts, if any, as may be payable under this Section 7(b), and
all of the terms of this Plan and the Contract Period Schedule shall be binding upon any such
Participant’s estate.

(c) Plan Creates No Employment Rights. Nothing in the Plan or any Contract Period Schedule
shall confer upon any Participant the right to continue in the employ of the Firm for the

4

 

Contract Period or thereafter or affect any right which the Firm may have to terminate such
employment.

(d) Arbitration. Any dispute, controversy or claim between the Firm and any Participant
arising out of or relating to or concerning the provisions of the Plan or any Contract Period
Schedule shall be finally settled by arbitration in New York City before, and in accordance with,
the rules then obtaining of the New York Stock Exchange, Inc. (“NYSE”) or, if the NYSE declines to
arbitrate the matter in New York City, the American Arbitration Association (the “AAA”) in
accordance with the commercial arbitration rules of the AAA. Prior to arbitration, all disputes,
controversies or claims maintained by any Participant must first be submitted to the Committee in
accordance with claim procedures determined by the Committee in its sole discretion. This Section
is subject to the provisions of Section 7(e).

(e) Choice of Forum.

(1) The Firm and each Participant, as a condition to such Participant’s
participation in the Plan, hereby irrevocably submit to the exclusive jurisdiction of any
state or federal court located in the City of New York over any suit, action or proceeding
arising out of or relating to or concerning the Plan or any Contract Period Schedule that
is not otherwise arbitrated or resolved according to the provisions of Section 7(d).
This includes any suit, action or proceeding to compel arbitration or to enforce an
arbitration award. The Firm and each Participant, as a condition to such Participant’s
participation in the Plan, acknowledge that the forum designated by this Section 7(e) has a
reasonable relation to the Plan, the Contract Period Schedule and to the relationship
between such Participant and the Firm. Notwithstanding the foregoing, nothing herein shall
preclude the Firm from bringing any action or proceeding in any other court for the purpose
of enforcing the provisions of Sections 7(d) and 7(e).

(2) The agreement by the Firm and each Participant as to forum is independent of the
law that may be applied in the action, and the Firm and each Participant, as a condition to
such Participant’s participation in the Plan (i) agree to such forum even if the forum may
under applicable law choose to apply non-forum law, (ii) hereby waive, to the fullest
extent permitted by applicable law, any objection which the Firm or such Participant now or
hereafter may have to personal jurisdiction or to the laying of venue of any such suit,
action or proceeding in any court referred to in Section 7(e)(1), (iii) undertake not to
commence any action arising out of or relating to or concerning this Plan or any Contract
Period Schedule in any forum other than the forum described in this Section 7(e) and (iv)
agree that, to the fullest extent permitted by applicable law, a final and non-appealable
judgment in any such suit, action or proceeding in any such court shall be conclusive and
binding upon the Firm and each Participant.

(3) Each Participant, as a condition to such Participant’s participation in the Plan,
hereby irrevocably appoints the General Counsel of GS Inc. as such Participant’s agent for
service of process in connection with any action, suit or proceeding arising out of or
relating to or concerning the Plan or any Contract Period Schedule which is not arbitrated
pursuant to the provisions of Section 7(d), who shall promptly advise such Participant of
any such service of process.

(4) Each Participant, as a condition to such Participant’s participation in the Plan,
agrees to keep confidential the existence of, and any information concerning, a dispute,
controversy or claim described in Sections 7(d) or 7(e), except that a Participant may

5

 

disclose information concerning such dispute, controversy or claim to the arbitrator
or court that is considering such dispute, controversy or claim or to such Participant’s
legal counsel (provided that such counsel agrees not to disclose any such information other
than as necessary to the prosecution or defense of the dispute, controversy or claim).

(5) Each Participant recognizes and agrees that prior to being selected by the
Committee to participate in the Plan such Participant has no rights hereunder. Accordingly,
in consideration of a Participant’s selection to participate in the Plan, each Participant
expressly waives any right to contest the amount of any Bonus payable hereunder, the terms
of the Plan or any Contract Period Schedule, any determination, action or omission
hereunder by the Committee, GS Inc. or the Board, or any amendment to the Plan or Contract
Period Schedule. By accepting the payment of any Bonus, each Participant agrees to be bound
by the terms of this Plan and any Contract Period Schedule.

(f) Governing Law. All rights and obligations under the Plan and any Contract Period Schedule
shall be governed by and construed in accordance with the laws of the State of New York, without
regard to principles of conflict of Laws.

(g) Tax Withholding. In connection with any payments to a Participant or other event under the
Plan that gives rise to a federal, state, local or other tax withholding obligation relating to the
Plan (including, without limitation, FICA tax), (i) the Firm may deduct or withhold (or cause to be
deducted or withheld) from any payment or distribution to such Participant whether or not pursuant
to the Plan or (ii) the Committee shall be entitled to require that such Participant remit cash
(through payroll deduction or otherwise), in each case in an amount sufficient in the opinion of
the Firm to satisfy such withholding obligation.

(h) Right of Offset. The Firm shall have the right to offset against the obligation to pay a
Bonus to any Participant, any outstanding amounts (including, without limitation, travel and
entertainment or advance account balances, loans or amounts repayable to the Firm pursuant to tax
equalization, housing, automobile or other employee programs) such Participant then owes to the
Firm and any amounts the Committee otherwise deems appropriate pursuant to any tax equalization
policy or agreement.

(i) Severability; Entire Agreement. If any of the provisions of this Plan or any Contract
Period Schedule is finally held to be invalid, illegal or unenforceable (whether in whole or in
part), such provision shall be deemed modified to the extent, but only to the extent, of such
invalidity, illegality or unenforceability and the remaining provisions shall not be affected
thereby. Neither this Plan nor any Contract Period Schedule shall supersede any other agreement,
written or oral, pertaining to the matters covered herein, except to the extent of any
inconsistency between this Plan (or a Contract Period Schedule) and any prior agreement, in which
case this Plan (and the Contract Period Schedule) shall prevail.

(j) No Third Party Beneficiaries. Neither the Plan nor any Contract Period Schedule shall
confer on any person other than the Firm and any Participant any rights or remedies hereunder.

(k) Participating Employers. Each subsidiary or affiliate of GS Inc. that employs a
Participant shall adopt this Plan by executing Schedule A (a “Participating Employer”). Except for
purposes of determining the amount of each Participant’s Bonus, this Plan shall be treated as a
separate plan maintained by each Participating Employer and the obligation to pay the Bonus to each
Participant shall be the sole liability of the Participating Employer(s) by which the Participant

6

 

is employed, and neither GS Inc. nor any other Participating Employer shall have any liability with
respect to such amounts.

(l) Successors and Assigns. The terms of this Plan and each Contract Period Schedule shall be
binding upon and inure to the benefit of GS Inc., each Participating Employer and their successors
and assigns and each permitted successor or assign of each Participant as provided in Section 7(b).

(m) Plan Headings. The headings in this Plan are for the purpose of convenience only and are
not intended to define or limit the construction of the provisions hereof.

(n) Construction. In the construction of this Plan, the singular shall include the plural, and
vice versa, in all cases where such meanings would be appropriate.

(o) Plan Subject to Stockholder Approval. The 2003 Plan was adopted by the Board on January
16, 2003 and was approved by the stockholders of GS Inc. at GS Inc.’s 2003 Annual Meeting. The
Plan, which is an amendment and restatement of the 2003 Plan, was adopted by the Board on January
24, 2006, which adoption was expressly conditioned on the approval of the stockholders of GS Inc.
at GS Inc.’s 2006 Annual Meeting in accordance with Section 162(m)(4)(C) of the Code and Treasury
Regulation Section 1.162-27(e)(4). No Bonus shall be payable under the Plan absent such stockholder
approval. If the amendments are not so approved, then the 2003 Plan shall remain in full force and
effect notwithstanding the amendments adopted on January 24, 2006.

IN WITNESS WHEREOF, and as evidence of the adoption of this Plan effective as of November 26,
2005 by GS Inc., it has caused the same to be signed by its duly authorized officer this 25th day
of January, 2006.

	 	 	 	 	 	 	 	 	 
	 	 	THE GOLDMAN SACHS GROUP, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ Esta E. Stecher	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Esta E. Stecher	 	 
	 

	 	 	 	Title:
	 	Executive Vice President and
General Counsel	 	 

7EX-10.1

 

Exhibit 10.1

RESTRICTED STOCK AGREEMENT

PURSUANT TO THE

MARKETAXESS HOLDINGS INC. 2004 STOCK INCENTIVE PLAN

     THIS AGREEMENT, made as of the 31st day of January 2006, by and between MarketAxess Holdings
Inc., a Delaware corporation with its principal office at 140 Broadway, 42nd Floor, New
York, New York 10005 (the “Company”), and Richard M. McVey
residing at      
     
        
       
       
       
                 (the “Participant”).

     WHEREAS, the Board of Directors of the Company (the “Board”) adopted, and the stockholders of
the Company, approved the MarketAxess Holdings Inc. 2004 Stock Incentive Plan (the “Plan”);

     WHEREAS, the Company, through the Committee under the Plan, wishes to grant to the Participant
shares of its common stock, par value $.003 per share (“Common Stock” or the “Shares”) in the
amount set forth below; and

     WHEREAS, such Shares are subject to certain restrictions.

     NOW, THEREFORE, the Company and the Participant agree as follows:

     1.     Sale of Shares. Subject to the terms, conditions and restrictions of the Plan and
this Agreement, the Company awards to the Participant Four Hundred Five Thousand (405,000) shares
of the Company’s Common Stock on January 31, 2006 (the “Grant Date”). To the extent required by
law, the Participant shall pay the Company the par value ($.003) (the “Purchase Price”) for each
Share awarded to the Participant simultaneously with the execution of this Agreement in cash or
cash equivalents payable to the order of the Company. Pursuant to the Plan and Section 2 of this
Agreement, the Shares are subject to certain restrictions, which restrictions shall expire in
accordance with the provisions of the Plan and Section 2 hereof. While such restrictions are in
effect, the Shares subject to such restrictions shall be referred to herein as “Restricted Stock.”

     2.     Vesting.

     (a)     Except as set forth in subsections (b), (c) and (d) below, the Restricted Stock shall
become vested and cease to be Restricted Stock (but shall remain subject to the other terms of this
Agreement and the Plan) as follows if the Participant has been continuously employed by the Company
until such date:

	 	 	 	 	 
	Vesting Date	 	Percentage Vested	 
	February 1, 2007
	 	 	20%	 
	February 1, 2008
	 	 	20%	 
	February 1, 2009
	 	 	20%	
	February 1, 2010
	 	 	20%	 
	February 1, 2011
	 	 	20%	 

     Notwithstanding the foregoing, the Restricted Stock shall become vested and cease to be
Restricted Stock (but shall remain subject to the other terms of this Agreement and the Plan) upon
the attainment of the performance goals described on Exhibit A, attached hereto, as determined by
the Committee in its sole discretion as follows:

 

 

	 	 	 	 	 	 	 	 	 
	Attainment of Performance Goal	 	Vesting Dates	 	Percentage Vested	 
	Attainment of 2006 Revenue and EPS Goals
	 	February 1, 2007	 	 	34%	 
	 
	 	February 1, 2008	 	 	33%	 
	 
	 	February 1, 2009	 	 	33%	 

     The Committee may, in its sole discretion, make adjustments to any performance goals as a
result of acquisitions and new business ventures that were not initially considered when developing
the original goals or to reflect other extraordinary events.

     There shall be no proportionate or partial vesting in the periods prior to the applicable
vesting dates and all vesting shall occur only on the appropriate vesting date.

     (b)     Upon the death or Disability of the Participant, all of the Restricted Stock shall become
vested and cease to be Restricted Stock (but shall remain subject to the other terms of this
Agreement and the Plan).

     (c)     In the event the Participant incurs a Termination by the Company without Cause (as defined
below), the lesser of (i) 67,500 shares of the Restricted Stock or (ii) all of the remaining
unvested shares of Restricted Stock shall become vested and cease to be Restricted Stock (but shall
remain subject to the other terms of this Agreement and the Plan).

     (d)     In the event of a Change in Control in which the holders of the Company’s outstanding
Common Stock receive cash in exchange for such Common Stock, the portion of the Restricted Stock
that is exchanged for cash shall become vested and cease to be Restricted Stock immediately prior
to such Change in Control. In the event of any other consideration payable in a Change in Control,
the portion of the Restricted Stock exchanged for such other consideration shall become vested and
cease to be Restricted Stock (but shall remain subject to the other terms of this Agreement and the
Plan) immediately upon the Participant’s incurring a Termination by the Company (or any successor
thereto) without Cause occurring after such Change in Control.

     (e)     For the purposes hereof, “Cause” shall mean (i) the Participant’s willful misconduct or
gross negligence in the performance of his duties under the letter agreement between the
Participant and the Company dated as of May 3, 2004 (the “Employment Agreement”), that is not cured
by the Participant within thirty (30) days after his receipt of written notice from the Company;
(ii) the Participant’s conviction of, or plea of guilty or nolo contendere to, a crime relating to
the Company or any affiliate or any felony; or (iii) a material breach by the Participant of the
Employment Agreement or any other material written agreement entered into between the Participant
and the Company that is not cured by the Participant within thirty (30) days after his receipt of
written notice from the Company.

     3.     Restrictions on Transfer. The Participant shall not sell, negotiate, transfer,
pledge, hypothecate, assign, encumber or otherwise dispose of the Shares or grant any proxy with
respect thereto, except as specifically permitted by the Plan and this Agreement. Any attempted
Transfer in violation of this Agreement and the Plan shall be void and of no effect and the Company
shall have the right to disregard the same on its books and records and to

2

 

issue “stop transfer” instructions to its transfer agent. Notwithstanding the foregoing,
nothing herein or in the Plan shall prohibit the Participant from pledging the Shares the
Participant is granted hereunder to the Company pursuant to a stock pledge agreement entered into
between the parties hereto.

     4.     Forfeiture. (a) The provisions in Section 8.l of the Plan regarding Detrimental
Activity shall apply to the Restricted Stock.

     (b)     If the Participant incurs a Termination for any reason, the Company shall repurchase from
the Participant for the Purchase Price paid for such shares of Restricted Stock, any and all
Restricted Stock.

     5.     Rights as a Holder of Restricted Stock. From and after the issue date, the
Participant shall have, with respect to the shares of Restricted Stock, all of the rights of a
holder of shares of Common Stock, including, without limitation, the right to vote the Shares, to
receive and retain all regular cash dividends payable to holders of Shares of record on and after
the issue date (although such dividends will be treated, to the extent required by applicable law,
as additional compensation for tax purposes), and to exercise all other rights, powers and
privileges of a holder of Shares with respect to the Restricted Stock, with the exceptions that (i)
the Participant shall not be entitled to delivery of the stock certificate or certificates
representing the Restricted Stock until such shares are no longer Restricted Stock; (ii) the
Company (or its designated agent) will retain custody of the stock certificate or certificates
representing the Restricted Stock and any other property (“RS Property”) issued in respect of the
Restricted Stock, including stock dividends at all times such Shares are Restricted Stock; (iii) no
RS Property will bear interest or be segregated in separate accounts; and (iv) the Participant
shall not, directly or indirectly, Transfer the Restricted Stock in any manner whatsoever.

     6.     Taxes; Section 83(b) Election. The Participant acknowledges, subject to the last
sentence of this paragraph, that (i) no later than the date on which any Restricted Stock shall
have become vested, the Participant shall pay to the Company or, to the extent permitted by law,
deliver to the Company outstanding shares of Common Stock held by the Participant or make other
arrangements satisfactory to the Company regarding payment of, any Federal, state or local taxes of
any kind required by law to be withheld with respect to any Restricted Stock which shall have
become so vested; (ii) the Company shall, to the extent permitted by law, have the right to deduct
from any payment of any kind otherwise due to the Participant any Federal, state or local taxes of
any kind required by law to be withheld with respect to any Restricted Stock which shall have
become so vested, including that the Company may, but shall not be required to, sell a number of
Shares sufficient to cover applicable withholding taxes or arrange for shares to be delivered on a
“net” basis, in each case subject to applicable law; and (iii) in the event that the Participant
does not satisfy (i) above on a timely basis, the Company may (to the extent permitted by
applicable law), but shall not be required to, pay such required withholding and treat such amount
as a demand loan to you at the maximum rate permitted by law, with such loan, at the Company’s sole
discretion and provided the Company so notifies the Participant within thirty (30) days of the
making of the loan, secured by the Shares, and any failure by you to pay the loan upon demand shall
entitle the Company to all of the rights at law of a creditor secured by the Shares. The Company
may hold as security any certificates representing any Shares and, upon demand of the Company, the
Participant shall deliver to the Company any certificates in his or her possession representing
Shares together with a stock power duly endorsed in blank. The Participant also acknowledges that
it is his or her sole responsibility, and not the Company’s, to file timely and properly any
election under

3

 

Section 83(b) of the Code, and any corresponding provisions of state tax laws, if the
Participant wishes to utilize such election.

     7.     Legend. In the event that a certificate evidencing Restricted Stock is issued, the
certificate representing the Shares shall have endorsed thereon the following legends:

     (a)     “THE ANTICIPATION, ALIENATION, ATTACHMENT, SALE, TRANSFER, ASSIGNMENT, PLEDGE, ENCUMBRANCE
OR CHARGE OF THE SHARES OF STOCK REPRESENTED HEREBY ARE SUBJECT TO THE TERMS AND CONDITIONS
(INCLUDING FORFEITURE) OF THE MARKETAXESS HOLDINGS INC. (THE “COMPANY”) 2004 STOCK INCENTIVE PLAN
(THE “PLAN”) AND AN AGREEMENT ENTERED INTO BETWEEN THE REGISTERED OWNER AND THE COMPANY DATED AS OF
THE 31st DAY OF JANUARY, 2006. COPIES OF SUCH PLAN AND AGREEMENT ARE ON FILE AT THE PRINCIPAL
OFFICE OF THE COMPANY.”

     (b)     Any legend required to be placed thereon by applicable blue sky laws of any state.
Notwithstanding the foregoing, in no event shall the Company be obligated to issue a certificate
representing the Restricted Stock prior to vesting as set forth in Section 2 hereof.

     8.     Securities Representations. The Shares are being issued to the Participant and
this Agreement is being made by the Company in reliance upon the following express representations
and warranties of the Participant. The Participant acknowledges, represents and warrants that:

     (a)     The Participant has been advised that the Participant may be an “affiliate” within the
meaning of Rule 144 under the Securities Act and in this connection the Company is relying in part
on the Participant’s representations set forth in this section;

     (b)     The Shares must be held indefinitely by the Participant unless (i) an exemption from the
registration requirements of the Securities Act is available for the resale of such Shares or (ii)
the Company files an additional registration statement (or a “re-offer prospectus”) with regard to
the resale of such Shares and the Company is under no obligation to continue in effect a Form S-8
Registration Statement or to otherwise register the resale of the Shares (or to file a “re-offer
prospectus”);

     (c)     The exemption from registration under Rule 144 will not be available under current law
unless (i) a public trading market then exists for the Common Stock of the Company, (ii) adequate
information concerning the Company is then available to the public, and (iii) other terms and
conditions of Rule 144 or any exemption therefrom are complied with and that any sale of the Shares
may be made only in limited amounts in accordance with such terms and conditions.

     9.     Not an Employment Agreement. Neither the execution of this Agreement nor the
issuance of the Shares hereunder constitute an agreement by the Company to employ or to continue to
employ the Participant during the entire, or any portion of, the term of this Agreement, including
but not limited to any period during which any Shares are outstanding.

     10.     Power of Attorney. The Company, its successors and assigns, is hereby appointed
the attorney-in-fact, with full power of substitution, of the Participant for the

4

 

purpose of carrying out the provisions of this Agreement and taking any action and executing
any instruments which such attorney-in-fact may deem necessary or advisable to accomplish the
purposes hereof, which appointment as attorney-in-fact is irrevocable and coupled with an interest.
The Company, as attorney-in-fact for the Participant, may in the name and stead of the
Participant, make and execute all conveyances, assignments and transfers of the Restricted Stock,
other RS Property, Shares and property provided for herein, and the Participant hereby ratifies and
confirms that which the Company, as said attorney-in-fact, shall do by virtue hereof.
Nevertheless, the Participant shall, if so requested by the Company, execute and deliver to the
Company all such instruments as may, in the judgment of the Company, be advisable for this purpose.

     11.     Miscellaneous.

     (a)     This Agreement shall inure to the benefit of and be binding upon the parties hereto and
their respective heirs, personal legal representatives, successors, trustees, administrators,
distributees, devisees and legatees. The Company may assign to, and require, any successor
(whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Company or any affiliate by which the
Participant is employed to expressly assume and agree in writing to perform this Agreement.
Notwithstanding the foregoing, the Participant may not assign this Agreement other than with
respect to Shares Transferred in compliance with the terms hereof.

     (b)     This award of Restricted Stock shall not affect in any way the right or power of the Board
or stockholders of the Company to make or authorize an adjustment, recapitalization or other change
in the capital structure or the business of the Company, any merger or consolidation of the Company
or subsidiaries, any issue of bonds, debentures, preferred or prior preference stock ahead of or
affecting the Common Stock, the dissolution or liquidation of the Company, any sale or transfer of
all or part of its assets or business or any other corporate act or proceeding.

     (c)     The Participant agrees that the award of the Restricted Stock hereunder is special
incentive compensation and that it, any dividends paid thereon (even if treated as compensation for
tax purposes) and any other RS Property will not be taken into account as “salary” or
“compensation” or “bonus” in determining the amount of any payment under any pension, retirement or
profit-sharing plan of the Company or any life insurance, disability or other benefit plan of the
Company.

     (d)     No modification or waiver of any of the provisions of this Agreement shall be effective
unless in writing and signed by the party against whom it is sought to be enforced.

     (e)     This Agreement may be executed in one or more counterparts, all of which taken together
shall constitute one contract.

     (f)     The failure of any party hereto at any time to require performance by another party of any
provision of this Agreement shall not affect the right of such party to require performance of that
provision, and any waiver by any party of any breach of any provision of this Agreement shall not
be construed as a waiver of any continuing or succeeding breach of such provision, a waiver of the
provision itself, or a waiver of any right under this Agreement.

5

 

     (g)     The headings of the sections of this Agreement have been inserted for convenience of
reference only and shall in no way restrict or modify any of the terms or provisions hereof.

     (h)     All notices, consents, requests, approvals, instructions and other communications provided
for herein shall be in writing and validly given or made when delivered, or on the second
succeeding business day after being mailed by registered or certified mail, whichever is earlier,
to the persons entitled or required to receive the same, at the addresses set forth at the heading
of this Agreement or to such other address as either party may designate by like notice. Notices
to the Company shall be addressed to the Compensation Committee of the Board.

     (i)     This Agreement shall be construed, interpreted and governed and the legal relationships of
the parties determined in accordance with the internal laws of the State of Delaware without
reference to rules relating to conflicts of law.

     (j)     By executing this Agreement within 60 days after the day and year first written above, the
award of Restricted Stock shall be accepted by the Participant within the time period required
under Section 8.2(b) of the Plan.

     12.     Provisions of Plan Control. This Agreement is subject to all the terms,
conditions and provisions of the Plan, including, without limitation, the amendment provisions
thereof, and to such rules, regulations and interpretations relating to the Plan as may be adopted
by the Committee and as may be in effect from time to time. The Plan is incorporated herein by
reference. A copy of the Plan has been delivered to the Participant. If and to the extent that
this Agreement conflicts or is inconsistent with the terms, conditions and provisions of the Plan,
the Plan shall control, and this Agreement shall be deemed to be modified accordingly. Unless
otherwise indicated, any capitalized term used but not defined herein shall have the meaning
ascribed to such term in the Plan. This Agreement contains the entire understanding of the parties
with respect to the subject matter hereof (other than any other documents expressly contemplated
herein or in the Plan) and supersedes any prior agreements between the Company and the Participant.

6

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of
the day and year first above written.

	 	 	 	 	 
	 	MARKETAXESS HOLDINGS INC.

 	 
	 	By:  	/s/ Richard M. McVey
 	 
	 	 	Name:  	Richard M. McVey 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 
	 	 	 
	 	By:  	                /s/ Cordelia Boise
 	 
	 	 	Name:  	Cordelia Boise 	 
	 	 	Title:  	Head of Human Resources 	 
	 
	 	 	 
	 	                                          /s/ Richard M. McVey
 	 
	 	Richard M. McVey 	 
	 	 	 
	 

7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00101-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00101-of-00352.parquet"}]]