Document:

exhibit_10-7.htm

    

     

    Exhibit
10.7

     

    Third
Amended and Restated

     

    Thomas
Weisel Partners Group, Inc. Equity Incentive Plan

     

    Section
1. Purpose. The
purposes of this Equity Incentive Plan (the “PLAN”) are to attract, retain and
motivate key employees and directors of and consultants and advisors to Thomas
Weisel Partners Group, Inc. (the “COMPANY”) and its Subsidiaries and Affiliates
and to align the interests of key employees, directors, consultants and advisors
with shareholders with equity-based compensation and enhanced opportunities for
ownership of shares of the Company’s common stock.

     

    Section
2. Definitions. The
following terms used in the Plan and any agreement entered into pursuant to the
Plan shall have the meaning set forth below:

     

    “AFFILIATE”
means (i) any Person that directly, or through one or more intermediaries,
controls, or is controlled by, or is under common control with, the Company or
(ii) any entity in which the Company has a significant equity interest, as
determined by the Committee.

     

    “AWARD”
means any Option, award of Restricted Stock or Restricted Stock units,
Performance Award, Other Stock-Based Award, or any other right, interest or
grant relating to Shares or other property granted pursuant to the
Plan.

     

    “AWARD
AGREEMENT” means any written agreement, contract or other instrument or document
evidencing any Award, which may, but need not be (as determined by the
Committee) executed or acknowledged by a Participant as a condition to receiving
an Award or the benefits under an Award.

     

    “BOARD”
or “BOARD OF DIRECTORS” means the Board of Directors of the
Company.

     

    “CHANGE
IN CONTROL” means

     

    (a) the
consummation of a merger, consolidation, statutory share exchange or similar
form of corporate transaction involving the Company or the sale or other
disposition of all or substantially all of the assets of the Company to an
entity that is not an affiliate that, in each case, requires shareholder
approval under the laws of the Company’s jurisdiction of organization, unless
immediately following such transaction: (i) more than 50% of the total voting
power of the surviving entity or the entity that directly or indirectly has
beneficial ownership of 95% of the voting securities eligible to elect directors
of the surviving entity (a “Parent Entity”), if applicable, is represented by
securities of the Company that were outstanding immediately prior to the
transaction (or securities into which the Company’s securities were converted or
exchanged in such transaction) and such voting power among the holders thereof
is in substantially the same proportion as the voting power of such securities
among the holders thereof immediately prior to such transaction; (ii) no person
(other than any employee benefit plan (or any related trust) sponsored or
maintained by the surviving entity or the Parent Entity), is or becomes the
beneficial owner, directly or indirectly, of securities of the Parent Entity
(or, if there is no Parent Entity, the surviving entity) representing 20% of the
total voting power of the securities then outstanding generally eligible to vote
for the election of directors of the Parent Entity (or, if there is no Parent
Entity, the surviving entity); and (iii) at least a majority of the members of
the board of directors (including directors whose election or nomination was
approved by at least two-thirds of the incumbent directors of the Board) of the
Parent Entity (or, if there is no Parent Entity, the surviving entity) were
members of the Board at the time of the Board’s approval of the execution of the
initial agreement providing for the transaction;

     

    (b) any
event that results in the directors of the Board as of the effective date of the
Plan (including directors whose election or nomination was approved by at least
two-thirds of the incumbent directors of the Board) failing to constitute at
least a majority of the Board; or

     

    (c) the
shareholders of the Company approve a plan of complete liquidation or
dissolution of the Company;

     

    provided, however, that for purposes of
(a)(iii) and (b) above no individual initially elected or nominated as a
director of the Board as a result of an actual or threatened election contest
with respect to directors or as a result of any other actual or
threatened solicitation of proxies or consents by or on behalf of any person
other than the Board shall be included in the calculation of
incumbency.

     

    Notwithstanding
(a)(ii) above, a Change in Control shall not be deemed to occur solely because
any person acquires beneficial ownership of more than 20% of the total voting
power of securities then outstanding generally eligible to vote for the election
of directors of the Parent Entity (or, if there is no Parent Entity, the
surviving entity) as a result of the acquisition of securities by the Company
which reduces the number of such securities outstanding; provided, that if after such
acquisition by the Company such person becomes the beneficial owner of
additional securities then outstanding generally eligible to vote for the
election of directors of the Parent Entity (or, if there is no Parent Entity,
the surviving entity) that increases the percentage of such securities
beneficially owned by such person, a Change in Control of the Company shall then
occur.

     

    “CODE”
means the Internal Revenue Code of 1986, as amended.

     

    “COMMITTEE”
means the Compensation Committee of the Board, or any successor to such
committee, or any other committee of our Board appointed or designated by the
Board, in each case, composed of no fewer than two directors each of whom is a
“non-employee director” within the meaning of Rule 16b-3 of the Securities
Exchange Act of 1934, as amended, and an “outside director” within the meaning
of Section 162(m) of the Code and the regulations promulgated
thereunder.

     

    “COVERED
EMPLOYEE” means an individual who is both (i) a “covered employee” within the
meaning of Section 162(m)(3) of the Code, or any successor provision thereto and
(ii) expected by the Committee to be the recipient of compensation (other than
“qualified performance based compensation” as defined in Section 162(m) of the
Code) in excess of $1,000,000 for the tax year of the Company with regard to
which a deduction in respect of such individual’s Award would be
allowed.

     

    “DISABILITY”
means the disability of a Participant (i) such that the Participant is
considered disabled under any long term disability plan of the Company, or
otherwise (ii) as determined by the Committee in its sole
discretion.

     

    “ELIGIBLE
PERSON” means any full time or part time employee (including an officer or
director who is also an employee), consultant or advisor of the Company or any
Affiliate selected by the Committee. Other than for awards of Incentive Stock
Options, “Eligible Person” shall also include any individual to whom an offer of
employment has been extended, a member of the Board or a member of the board of
directors of a Subsidiary. References to “employment” and related terms in the
Plan shall include the provision of services in any capacity.

     

    “FAIR
MARKET VALUE” means, with respect to a Share as of any date, (i) the closing
sale price per Share, as reported on NASDAQ, or, if different, the principal
securities exchange or market on which the Shares are then traded, on such date,
or, if no sale of Shares is reported for that date, on the last preceding date
on which there was a sale of Shares on NASDAQ or such principal securities
exchange or market and (ii), if the Shares are not then traded on any securities
exchange or market, the fair market value thereof as determined in good faith by
the Committee.

     

    “INCENTIVE
STOCK OPTION” means any Option that is intended to qualify for special federal
income tax treatment pursuant to Sections 421 and 422 of the Code (or a
successor provision thereof) and which is so designated in the applicable Award
Agreement. Under no circumstances shall any Option that is not specifically
designated as an Incentive Stock Option be considered an Incentive Stock
Option.

     

    “INITIAL
PUBLIC OFFERING” means the consummation of initial offering of Shares of the
Company to the public.

     

    “NON-QUALIFIED
STOCK OPTION” means an Option that is not an Incentive Stock
Option.

     

    “OPTION”
means an option to purchase a Share or Shares granted under the
Plan.

     

    “OTHER
STOCK-BASED AWARD” means an Award granted pursuant to Section 9 of the
Plan.

     

    “PARTICIPANT”
means a person who has been granted an Award under the Plan which remains
outstanding, including a person who is no longer an Eligible
Person.

     

     “PERFORMANCE
AWARD” means an Award granted pursuant to Section 10 of the Plan.

     

    “PERFORMANCE
PERIOD” means the period of at least nine months established by the Committee at
the time any Performance Award is granted or at any time thereafter during which
any performance goals specified by the Committee with respect to such Award are
measured.

     

    “PERSON”
means an individual, corporation, partnership, association, trust, limited
liability company or any other entity or organization, including a government or
political subdivision or an agency, unit or instrumentality
thereof.

     

    “RESTRICTED
STOCK” means an award of shares which are subject to certain
restrictions.

     

    “RETIREMENT”
means termination of employment on or after the date the Participant has (i)
attained age 65 and completed at least six years of service following the
Company’s Initial Public Offering or (ii) completed at least twenty years of
service with the Company or its predecessors; provided that with respect to
Awards granted prior to May 23, 2007 “Retirement” means termination of
employment on or after the date the Participant has (i) attained age 65 and
completed at least two years of service following the Company’s Initial Public
Offering or (ii) completed at least twelve years of service with the Company or
its predecessors.

     

    “SHARE”
means a share of common stock of the Company, par value $0.01.

     

    “SUBSIDIARY”
means a corporation, limited liability company, partnership or other entity
where 50% or more of its outstanding voting securities or other equity interests
is owned directly or indirectly by the Company at the time an Award is issued
under the Plan.

     

    “SUBSTITUTE
AWARD” means an Award granted in assumption of, or in substitution for, an
outstanding equity award previously granted by a business or entity all or a
portion of which is acquired by the Company or any Affiliate or with which the
Company or an Affiliate combines.

     

    Section
3. Administration. (a)
The Plan will be administered by the Committee. Subject to and consistent with
the provisions of the Plan, the Committee will have full power and authority, in
its discretion, and without limitation, to: (i) select Eligible Persons to
become Participants; (ii) determine the type and number of Awards to be granted
to each Participant; (iii) determine the number of Shares to be covered by each
Award; (iv) determine the dates on which Awards may be exercised and on which
the risk of forfeiture or deferral period relating to Awards shall lapse or
terminate, and the acceleration of any such dates; (v) determine the expiration
date of any Award; (vi) determine whether, to what extent, and under what
circumstances an Award may be settled, or the exercise price of an Award may be
paid, in cash, Shares, other Awards, or other property or canceled, forfeited or
suspended and the method or methods by which an Award may be settled, canceled,
forfeited or suspended; (vii) determine any other terms and conditions of, and
all other matters relating to, Awards; (viii) prescribe Award Agreements (such
Award Agreements need not be identical for each Participant) and amendments
thereto; (ix) construe, interpret and implement the Plan and the respective
Award Agreements entered into pursuant to the Plan; (x) correct any defect,
supply any omission and reconcile any inconsistency in the Plan; and (xi) make
all other determinations necessary or advisable for administering the Plan. All
decisions and determinations of the Committee with respect to the administration
and interpretation of the Plan shall be final, conclusive, and binding upon all
persons interested in the Plan, including Participants, beneficiaries, and other
persons claiming rights from or through a Participant, and
shareholders.

     

    (b) To the fullest extent permitted by
law, each member and former member of the Committee and each person to whom the
Committee delegates or has delegated authority under this Plan shall have no
liability to any Person for any action taken, failure to act or determination
made in good faith with respect to this Plan or an Award and shall be entitled
to indemnification by the Company against and from any loss, liability,
judgment, damage, cost (including attorneys’ fees) and reasonable expense
incurred by such member, former member or other person by reason of any action
taken, failure to act or determination made in good faith under or with respect
to this Plan or an Award. The foregoing right of indemnification shall not be
available to such Committee member or delegate 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 him or her giving rise to the indemnification claim resulted from
such 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 such Committee member or delegate may be entitled under the Company’s
Certificate of Incorporation or By-laws, as a matter of law, or otherwise, or
any other power that the Company may have to indemnify such persons or hold them
harmless.

     

    Section
4. Shares Subject to the
Plan. (a) Shares to be issued under the Plan may consist, in whole or in
part, of authorized and unissued Shares, treasury Shares, Shares purchased by
the Company in the open market, Shares purchased in the open market by one or
more trusts established for the benefit of Participants or otherwise. Subject to
adjustment made in accordance with Section 12 of the Plan, the maximum number of
Shares that may be issued under the Plan will not exceed 17,150,000 Shares.
Notwithstanding the foregoing and subject to adjustment as provided in Section
12 of the Plan, no Covered Employee may be granted Awards under the Plan in any
calendar year that relate to more than 1,000,000 Shares. The Committee may
direct that any stock certificate evidencing Shares issued pursuant to the Plan
shall bear a legend setting forth such restrictions on transferability as may
apply to such Shares pursuant to the Plan.

     

    (b)
Shares subject to an Award (other than a Substitute Award) that is canceled,
expired, forfeited, settled in cash or otherwise terminated without a delivery
of Shares to the Participant will again be available for Awards, and Shares
withheld in payment of the exercise price or taxes relating to an Award and
Shares equal to the number surrendered in payment of any exercise price or taxes
relating to an Award shall be deemed to constitute Shares not delivered to the
Participant and shall be deemed to again be available for Awards under the Plan.
Shares underlying Substitute Awards shall not reduce the number of Shares
available for delivery under the Plan.

     

    Section
5. Eligibility. Awards
may be granted only to Eligible Persons who are selected to be Participants by
the Committee in accordance with the provisions of the Plan. Holders of
equity-based awards granted by a business or entity all or a portion of which is
acquired by the Company or any Affiliate or with which the Company or an
Affiliate combines are eligible to receive Substitute Awards
hereunder.

     

    Section
6. Options. The
Committee is authorized to grant Options to Participants on the following terms
and conditions and with such additional terms and conditions, not inconsistent
with the provisions of the Plan, as the Committee shall determine in its sole
discretion.

     

    (a) Exercise Price. The exercise
price of each Option granted under the Plan shall be determined by the Committee
and shall not be less than the Fair Market Value of a Share on the date of grant
of such Option and, once determined and established, shall not be changed or
reset by the Committee, except as provided in Section 12 of this
Plan.

     

    (b) Term and Termination of
Options. The term of each Option, together with the effect of termination
of employment or service by a Participant on such term, will be determined by
the Committee, but in no event will an Option be exercisable, either in whole or
in part, after the expiration of ten years from the date of grant of such
Option.

     

    (c) Exercise of Option. Each
Option shall be exercisable at such times and subject to such terms and
conditions as the Committee may, in its discretion, specify in the applicable
Award Agreement or thereafter (subject to the rights of a Participant provided
under Section 17 hereof); provided that each Option granted after the date of
the Initial Public Offering to any Participant (i) that is not a non-employee
director of the Company shall become exercisable and vested ratably (on a
monthly, quarterly, annual or other basis as (as the Committee may determine))
over no less than a period of three years and (ii) that is a non-employee
director of the Company shall become exercisable and vested ratably (on a
monthly, quarterly, annual or other basis as (as the Committee may determine))
over no less than a period of three years, unless such Option is granted as part
of such non-employee director’s regular annual compensation paid in accordance
with the Company’s director compensation policy. Unless the applicable Award
Agreement otherwise provides, an Option may be exercised from time to time as to
all or part of the shares as to which such Award is then exercisable (but, in
any event, only for whole shares).

     

    Section 7. Incentive Stock
Options. In accordance
with rules and procedures established by the Committee, the aggregate Fair
Market Value (determined as of the time of grant) of the Shares with respect to
which Incentive Stock Options held by any Participant which are exercisable for
the first time by such Participant during any calendar year under the Plan
(and under any other benefit plans of the Company or any Subsidiary) shall not
exceed $100,000 or, if different, the maximum limitation in effect at the time
of grant under Section 422 of the Code, or any successor provision, and any
regulations promulgated thereunder. Incentive Stock Options shall be granted
only to participants who are employees of the Company or a Subsidiary of the
Company, but, to the extent required under Section 422 of the Code, an Incentive
Stock Option may not be granted under the Plan to an employee who, at the time
the option is granted, owns stock possessing more than 10% of the total combined
voting power of all classes of stock of his or her employer corporation or of
its parent or subsidiary corporations (as such ownership may be determined for
purposes of Section 422(b)(6) of the Code) unless (i) at the time such Incentive
Stock Option is granted the option exercise price is at least 110% of the Fair
Market Value of the shares subject thereto and (ii) the Incentive Stock Option
by its terms is not exercisable after the expiration of five (5) years from the
date granted.

     

    Section
8. Restricted Stock and
Restricted Stock Unit Awards. The Committee is authorized to grant
Restricted Stock and/or Restricted Stock units to Participants.

     

    (a) The
Awards granted under this Section 8 shall be subject to such restrictions as the
Committee may impose (including, without limitation, any limitation on the right
to vote Shares underlying Restricted Stock and Restricted Stock units or the
right to receive any dividend, other right or property), which restrictions may
lapse separately or in combination at such time or times, in such installments
or otherwise, as the Committee may deem appropriate; provided that each Award
granted after the date of the Initial Public Offering to any Participant (i)
that is not a non-employee director of the Company shall vest and be settled
ratably (on a monthly, quarterly, annual or other basis as (as the Committee may
determine)) over no less than a period of three years and (ii) that is a
non-employee director of the Company shall vest and be settled ratably (on a
monthly, quarterly, annual or other basis as (as the Committee may determine))
over no less than a period of three years, unless such Award is granted as part
of such non-employee director’s regular annual compensation paid in accordance
with the Company’s director compensation policy. Shares of Restricted Stock may
not be sold, assigned, transferred, pledged or otherwise encumbered or disposed
of except as specifically provided in this Plan or the applicable Award
Agreement. Unless the applicable Award Agreement provides otherwise, additional
shares of common stock or other property distributed to the Participant in
respect of shares of Restricted Stock or Restricted Stock units, as dividends or
otherwise, shall be subject to the same restrictions applicable to such
Restricted Stock or Restricted Stock units.

     

    (b) Any
Award of Restricted Stock or Restricted Stock units may be evidenced in such
manner as the Committee may deem appropriate, including, without limitation,
book-entry registration or issuance of a stock certificate or certificates. In
the event any stock certificate is issued in respect of Shares underlying a
Restricted Stock Award, such certificate shall be registered in the name of the
Participant.

     

    (c)
Unless the Committee shall otherwise determine, any certificate issued
evidencing shares of Restricted Stock shall remain in the possession of the
Company until such shares are free of any restrictions specified in the
applicable Award Agreement.

     

    Section
9. Other Stock-Based
Awards. The Committee is authorized, subject to limitations under
applicable law, to grant to Participants such other Awards that may be
denominated or payable in, valued in whole or in part by reference to, or
otherwise based on, or related to, Shares or factors that may influence the
value of Shares, including, without limitation, convertible or exchangeable debt
securities, other rights convertible or exchangeable into Shares, purchase
rights for Shares, Awards with value and payment contingent upon performance of
the Company or business units thereof or any other factors designated by the
Committee. The Committee shall determine the terms and conditions of such
Awards. Shares delivered pursuant to an Award in the nature of a purchase right
granted under this Section 9 shall be purchased for such consideration, paid for
at such times, by such methods, and in such forms, including, without
limitation, cash, Shares, other Awards, notes, or other property, as the
Committee shall determine. Cash awards, as an element of or supplement to any
other Award under the Plan, may also be granted pursuant to this Section 9.
Other than Awards which are granted in lieu of cash consideration, (i) Awards
granted pursuant to this Section 9 that are in the nature of a Performance Award
are subject to the requirement set forth in Section 2 that the related
Performance Period be
a period of at least nine months and (ii) Awards granted pursuant to this
Section 9 that are not in the nature of a Performance Award are subject to the
minimum vesting and settlement terms set forth in Section 6(c) and
8(a).

     

    Section
10. Performance
Awards.

     

    (a) General . Performance Awards
may be denominated as a cash amount, number of Shares, number of Share units
having a value equal to an identical number of Shares, or a combination thereof
and are awards which may be earned upon achievement or satisfaction of
performance conditions specified by the Committee. In addition, the Committee
may specify that any other Award shall constitute a Performance Award by
conditioning the right of a Participant to exercise the Award or have it
settled, and the timing thereof, upon achievement or satisfaction of such
performance conditions as may be specified by the Committee. The Committee may
use such business criteria and other measures of performance as it may deem
appropriate in establishing any performance conditions. In the event that a
stock certificate is issued in respect of Performance Awards, such certificates
shall be registered in the name of the Participant but shall be held by the
Company until the time the performance shares are earned.

     

    (b) Performance Goals Generally.
The performance goals for such Performance Awards shall consist of one or more
business criteria and a targeted level or levels of performance with respect to
each of such criteria, as specified by the Committee consistent with this
Section 10. The Committee may determine that such Performance Awards shall be
granted, exercised and/or settled upon achievement of any one performance goal
or that two or more of the performance goals must be achieved as a condition to
grant, exercise and/or settlement of such Performance Awards. Performance goals
may differ for Performance Awards granted to any one Participant or to different
Participants.

     

    (c) Business Criteria. Without
limitation of the use of other criteria, one or more of the following business
criteria for the Company, on a consolidated basis, and/or for specified
subsidiaries or affiliates or other business units of the Company may be used by
the Committee in establishing performance goals for such Performance Awards: (i)
earnings per share, (ii) return on average common equity, (iii) pre-tax income,
(iv) pre-tax operating income, (v) net revenues, (vi) net income, (vii) profits
before taxes, (viii) book value per share, (ix) stock price, (x) earnings
available to common shareholders, (xi) ratio of compensation and benefits to net
revenues and (xii) execution and origination of assignments directly related to
the individual covered employee. Such targets may relate to the Company as a
whole, or to one or more units thereof, and may be measured over such periods of
at least nine months, as the Committee shall determine. The targeted level or
levels of performance with respect to such business criteria may be established
at such levels and in such terms as the Committee may determine, in its
discretion, including in absolute terms, as a goal relative to performance in
prior periods, or as a goal compared to the performance of one or more
comparable companies or an index covering multiple companies.

     

    (d) Settlement of Performance Awards;
Other Terms. Settlement of Performance Awards shall be in cash, Shares,
other Awards or other property, in the discretion of the Committee. Performance
Awards will be distributed only after the end of the relevant Performance
Period. The Committee may, in its discretion, increase or reduce (subject to the
rights of a Participant provided under Section 17 hereof) the amount of a
settlement otherwise to be made in connection with such Performance Awards, but
may not exercise discretion to increase any such amount payable to a Covered
Employee in respect of a Performance Award subject to Paragraph (b) above. The
Committee shall specify the circumstances in which such Performance Awards shall
be paid or forfeited in the event of termination of employment by the
Participant.

     

    Section
11. Termination of
Employment. Unless otherwise determined by the Committee or provided by
the Committee in the applicable Award Agreement, the following provisions shall
apply:

     

    (a) Upon
a termination of employment as a result of death, Disability or
Retirement:

     

    (i) any
Award (other than Options) then held by the Participant will be immediately
accelerated and become fully vested, exercisable and payable, and

     

     (ii)
any Option then held by the Participant will be immediately accelerated and
become fully vested and exercisable and will expire on the earlier of (A) the
date the option would have expired had the Participant continued in such
employment and (B) one (1) year after the date such Participant’s service
ceases.

     

    (b) Upon
termination of employment by the Company for cause (as determined by the
Committee in its sole discretion):

     

    (i) any
Award then held by the Participant whose restrictions have not lapsed, which is
not exercisable or which is not payable will automatically be forfeited in full
and canceled by the Company upon such termination of employment,
and

     

    (ii) any
Option then held by the Participant, to the extent exercisable, will
automatically be forfeited in full and canceled by the Company upon such
termination of employment.

     

    (c) Upon
a termination of employment by the Company without cause (as determined by the
Committee in its sole discretion) within two years following the occurrence of a
Change in Control or (ii) upon a termination of employment by the Company
without cause (as determined by the Committee in its sole discretion) six months
prior to the occurrence of a Change in Control if, in the case of (ii), the
Committee reasonably determines in its sole discretion that such termination was
at the behest of the acquiring entity (each such termination of employment
deemed to be a termination of employment “in connection with” the occurrence of
a Change in Control):

     

    (i) any
Award (other than Options) then held by the Participant will be immediately
accelerated and become fully vested, exercisable and payable, and

     

    (ii) any
Option then held by the Participant will be immediately accelerated and become
fully vested, exercisable and payable and shall automatically expire on the
earlier of (A) the date the Option would have expired had the Participant
continued in such employment and (B) one year after the date such Participant’s
service ceases, or, in the case of clause (B), in the event the Committee
determines the termination was without cause at the behest of the acquiring
entity, one (1) year after the date of such determination.

     

    (d) Upon
termination of employment for any reason other than those specified in (a), (b)
or (c) above:

     

    (i) any
Award (other than Performance Awards) then held by the Participant whose
restrictions have not lapsed, which is not vested, which is not exercisable or
which is not payable will automatically be forfeited in full and canceled by the
Company upon such termination of employment,

     

    (ii) any
Option then held by the Participant, to the extent exercisable, shall
automatically expire on the earlier of (A) the date the Option would have
expired had the Participant continued in such employment and (B) one hundred and
eighty (180) days (or ninety (90) days in the case of an Option that is intended
to qualify as an Incentive Stock Option) after the date the such Participant’s
service ceases, and

     

    (iii) any
Performance Award then held by the Participant which is not then payable will be
paid in accordance with its terms, which terms may provide that the Performance
Award be forfeited.

     

    (e)
Unless the Committee determines at any time in its sole discretion that this
Section 11(e) shall not apply, in the event the Company sells or spins off a
portion of its assets or one of its Affiliates and a Participant is determined
by the Committee to have a termination of employment as a result of such sale or
spin-off, then the Participant shall be permitted to exercise Participant’s
Options that are vested and outstanding on the effective date of such
termination until the earlier of one (1) year after such termination of
employment or the expiration of the Award.

     

    Section 12. Adjustment. In the event of any extraordinary
dividend or other extraordinary distribution (whether in the form of cash,
Shares, other securities, or other property), recapitalization, forward or
reverse split, reorganization, merger, consolidation, spin-off, combination,
repurchase, share exchange, liquidation, dissolution or other similar corporate
transaction or event, then the Committee shall, in such manner as it shall deem
equitable, adjust any or all of (i) the maximum number of Shares that may be
issued under the Plan as set forth in Section 4(a) or the number and kind of
Shares which may be delivered in connection with Awards granted thereafter, (ii) the number and
kind of Shares by which annual per person Award limitations are measured under
Section 4(a), (iii) the number and kind of Shares subject to or deliverable in
respect of outstanding Awards and (iv) the exercise price, grant price or
purchase price relating to any Award. In addition, the Committee shall, in such
manner as it shall deem equitable, make adjustments in the terms and conditions
of, and the criteria included in, Awards (including Performance Awards and
performance goals) in recognition of unusual or nonrecurring events (including,
without limitation, events described in the preceding sentence, as well as
acquisitions and dispositions of businesses and assets) affecting the Company,
any Subsidiary or Affiliate or other business unit, or the financial statements
of the Company or any Subsidiary or Affiliate, or in response to changes in
applicable laws, regulations, accounting principles, tax rates and regulations
or business conditions or in view of the Committee’s assessment of the business
strategy of the Company, any Subsidiary or Affiliate or business unit thereof,
performance of comparable organizations, economic and business conditions,
personal performance of a Participant, and any other circumstances deemed
relevant. After any adjustment made pursuant to this paragraph, the number of
shares subject to each outstanding Award shall be rounded to the nearest whole
number.

     

    Section
13. Change in Control.
Subject to Section 11 of the Plan and except as otherwise provided in the
applicable Award Agreement, upon the occurrence of a Change in Control, the
Committee shall determine whether outstanding but unvested or unexercisable
Options under the Plan shall become fully vested and exercisable and whether
outstanding but unvested, unexercisable or not yet payable Awards (other than
Options) under the Plan shall become fully vested, exercisable and payable;
provided that all Awards consisting of Restricted Stock units granted in
February 2006 in connection with the Initial Public Offering shall become fully
vested upon a Change in Control. In addition, upon a Change in Control, the
Committee may determine that any or all outstanding Awards granted under the
Plan shall be canceled and terminated; provided that, in connection with such
cancellation and termination of any Award which is then vested, exercisable or
payable, the holder of such Award receives for each Share subject to such Awards
a cash payment (or the delivery of Shares, other securities or a combination of
cash, stock and securities equivalent to such cash payment) equal to the
difference, if any, between the consideration received by shareholders of the
Company in respect of a Share in connection with such transaction and the
purchase price per share, if any, under the Award multiplied by the number of
Shares subject to such Award; provided further that if such product is zero or
less, the Awards will be canceled and terminated without payment
therefor.

     

    Section
14. Compliance with Laws;
Transferability. (a) The Company may, to the extent deemed necessary or
advisable by the Committee, postpone the issuance or delivery of Shares or
payment of other benefits under any Award until completion of such registration
or qualification of such Shares or other required action under any applicable
law, rule or regulation, listing or other required action with respect to any
stock exchange or automated quotation system upon which the Shares or other
securities of the Company are listed or quoted, or compliance with any other
obligation or policy of the Company, as the Committee may consider

     

    appropriate,
and may require any Participant to make such representations, furnish such
information and comply with or be subject to such other conditions as it may
consider appropriate in connection with the issuance or delivery of Shares or
payment of other benefits in compliance with applicable laws, rules, and
regulations, listing requirements, or other obligations or policies of the
Company. Nothing herein shall require the Company to list, register or qualify
the shares of common stock on any securities exchange.

     

    (b)
Except as the Committee may otherwise determine from time to time, (i) no Award
and no right under any Award shall be assignable, alienable, saleable or
transferable by a Participant otherwise than by will or by the laws of descent
and distribution; (ii) each Award, and each right under any Award, shall be
exercisable during the Participant’s lifetime only by the Participant or, if
permissible under applicable law, by the Participant’s guardian or legal
representative; and (iii) no Award and no right under any such Award, may be
pledged, alienated, attached, or otherwise encumbered, and any purported pledge,
alienation, attachment or encumbrance thereof shall be void and unenforceable
against the Company. The provisions of this Section 14(b) shall not apply to any
Award which has been fully exercised, earned or paid, as the case may be, and
shall not preclude forfeiture of an Award in accordance with the terms
thereof.

     

    Section 15. Certain Tax
Provisions. (a) The
Company and any Subsidiary or Affiliate is authorized to withhold from any Award
granted, any payment relating to an Award under the Plan, including from a
distribution of Shares, or any payroll or other payment to a Participant,
amounts of withholding and other taxes due or potentially payable in connection
with any transaction involving an Award (including, without limitation, FICA
tax), and to take such other action as the Committee may deem advisable to
enable the Company and Participants to satisfy obligations for the payment of
withholding taxes and other tax obligations relating to any Award. This
authority shall include authority to withhold or receive Shares or other
property and to make cash payments in respect thereof in satisfaction of a
Participant’s withholding obligations, either on a mandatory or elective basis
in the discretion of the Committee. Notwithstanding any other provision of the
Plan, only the minimum amount of Shares deliverable in connection with an Award
necessary to satisfy statutory withholding requirements will be withheld. For
this purpose, Fair Market Value shall be determined as of the date on which the
amount of tax to be withheld is determined (and any fractional share amount
shall be settled in cash).

     

    (b) If
any Participant shall make any disposition of Shares delivered pursuant to the
exercise of an Incentive Stock Option under the circumstances described in
Section 421(b) of the Code, such Participant shall notify the Company of such
disposition within ten days thereof.

     

    (c) If a
Participant, in connection with the acquisition of Shares under the Plan, is
permitted under the terms of the Award Agreement to make the election permitted
under Section 83(b) of the Code (i.e., an election to include in gross income in
the year of transfer the amounts specified in Section 83(b) of the Code
notwithstanding the continuing transfer restrictions) and the Participant makes
such an election, the Participant shall notify the Company of such election
within ten (10) days of filing notice of the election with the Internal Revenue
Service, in addition to any filing and notification required pursuant to
regulations issued under Section 83(b) of the Code.

     

    Section
16. General Provisions.
(a) Neither the Plan nor any action taken hereunder shall be construed as (i)
giving any Eligible Person or Participant the right to continue as an Eligible
Person or Participant or in the employ or service of the Company or a Subsidiary
or Affiliate, (ii) interfering in any way with the right of the Company or a
Subsidiary or Affiliate to terminate any Eligible Person’s or Participant’s
employment or service at any time (subject to the terms and provisions of any
separate written agreements), (iii) giving an Eligible Person or Participant any
claim to be granted any Award under the Plan or to be treated uniformly with
other Participants and employees, or (iv) conferring on a Participant any of the
rights of a shareholder of the Company unless and until the Participant is duly
issued or transferred Shares in accordance with the terms of an Award. Except as
expressly provided in the Plan and an Award Agreement, neither the Plan nor any
Award Agreement shall confer on any person other than the Company and the
Participant any rights or remedies thereunder.

     

    (b) The
prospective recipient of any Award under the Plan shall not, with respect to
such Award, be deemed to have become a Participant, or to have any rights with
respect to such Award, until and unless such recipient shall have received or
executed (if execution is required) an Award Agreement or other instrument
evidencing the Award and delivered a copy thereof to the Company, and otherwise
complied with the then applicable terms and conditions.

     

    (c) The
Committee shall have full power and authority to determine whether, to what
extent and under what circumstances any Award shall be canceled or suspended.
These powers may include cancellation or forfeiture if a Participant establishes
a relationship with a competitor of the Company or engages in activity which is
in conflict with or adverse to the interest of the Company, as determined under
the Company’s non-competition policy, as in effect from time to
time.

     

    (d) The
Committee shall be authorized to establish procedures pursuant to which the
payment of any Award may be deferred, either automatically, or at the election
of the Committee or a Participant. Subject to the provisions of the Plan and any
Award Agreement, the recipient of the Award (including, without limitation, any
deferred Award) may, if so determined by the Committee, be entitled to receive,
currently or on a deferred basis, cash dividends, or cash payments in amounts
equivalent to cash

     

    dividends
on Shares, with respect to the number of Shares covered by the Award, as
determined by the Committee, in its sole discretion, and the Committee may
provide that such amounts (if any) shall be deemed to have been reinvested in
additional Shares or otherwise reinvested. This Section 16(d) shall not apply to
any Award granted to any resident of Canada if the result of any such deferral
would be to postpone payment of such Award to a time later than the third
anniversary of the end of the calendar year in which the Award was
granted.

     

     (e)
If any provision of this Plan is or becomes or is deemed invalid, illegal or
unenforceable in any jurisdiction, or would disqualify the Plan or any Award
under any law deemed applicable by the Committee, such provision shall be
construed or deemed amended to the extent, but only to the extent, necessary to
conform to applicable laws or if it cannot be construed or deemed amended
without, in the determination of the Committee, materially altering the intent
of the Plan, it shall be stricken and the remainder of the Plan shall remain in
full force and effect.

     

    (f)
Awards may be granted to employees of the Company or any Subsidiary or Affiliate
who are foreign nationals or employed outside the United States, or both, on
such terms and conditions different from those applicable to Awards to those
employees employed in the United States as may, in the judgment of the
Committee, be necessary or desirable in order to recognize differences in local
law or tax policy. The Committee also may impose conditions on the exercise or
vesting of Awards in order to minimize the Company’s obligation with respect to
tax equalization for employees of the Company or any Subsidiary or Affiliate on
assignments outside their home country.

     

    (g) Any
and all grants of Awards and issuances of Shares under the Plan shall constitute
a special incentive payment to the Participant and shall not be taken into
account in computing the amount of salary or compensation of the Participant for
the purpose of determining any benefits under any pension, retirement,
profit-sharing, bonus, life insurance or other benefit plan of the Company or
under any agreement with the Participant, unless such plan or agreement
specifically provides otherwise. Nothing contained in the Plan shall be deemed
in any way to limit or restrict the Company from making any Award or payment to
any person under any other plan, arrangement or understanding, whether now
existing or hereafter in effect.

     

    (h) The
section headings contained herein are for the purpose of convenience only and
are not intended to define or limit the contents of the sections.

     

    (i)
Except as expressly provided therein, neither the Plan nor any Award Agreement
shall confer on any person other than the Company and the Participant any rights
or remedies hereunder or thereunder.

     

    (j) The
terms of the Plan shall be binding upon and inure to the benefit of the Company
and its successors and assigns.

     

    (k) Each
grantee of an Award recognizes and agrees that prior to being selected by the
Committee to receive an Award he or she has no right to any benefits hereunder.
Accordingly, in consideration of the grantee’s receipt of any Award hereunder,
he or she expressly waives any right to contest the amount of any Award, the
terms of any Award Agreement, any determination, action or omission hereunder or
under any Award Agreement by the Committee, the Company or the Board, or any
amendment to the Plan or any Award Agreement (other than an amendment to this
Plan or an Award Agreement to which his or her consent is expressly required by
the express terms of the Plan or an Award Agreement).

     

    Section
17. Effective Date; Amendment
and Termination. (a) This Second Amended and Restated Equity Incentive
Plan shall become effective upon its approval by the shareholders of the Company
on May 19, 2008.

     

    (b)
Unless the Plan will have been previously terminated by the Board, the Plan will
terminate ten years from the date set forth in Section 17(a). All Awards made
under the Plan prior to its termination shall remain in effect until such Awards
have been satisfied or terminated in accordance with the terms and provisions of
the Plan and the applicable Award Agreements. The Board will have the right, at
any time to suspend, amend, alter, discontinue or terminate the Plan, provided,
however that no such action shall be made without shareholder approval if such
approval is required under tax or stock exchange rules and regulations. No
termination of the Plan or action by the Board in amending or suspending the
Plan may materially impair the rights of a Participant under any outstanding
Award, without the consent of the affected Participant, except any such
amendment made to cause the Plan to comply with applicable law, stock exchange
rules and regulations or accounting or tax rules and regulations (including but
not limited to Section 409A of the Code).

     

    (c) The Committee may waive any
conditions or rights under, amend any terms of, or amend, alter, suspend,
discontinue or terminate, any Award theretofore granted, prospectively or
retroactively, without the consent of any Participant or holder or beneficiary
of any Award; provided, however, that, notwithstanding the foregoing in this Section 17(c), no
such action shall impair the rights of a Participant or holder or beneficiary
under any Award theretofore granted under the Plan.

     

    Section
18. Governing Law. The
Plan will be governed by and construed in accordance with the law of the State
of New York, without giving effect to principles of conflict of
laws.exhbit_10-19.htm

    Exhibit
10.19

    AMENDED AND RESTATED CEO EMPLOYMENT
AGREEMENT

    

    

    Thomas W.
Weisel

    Thomas
Weisel Partners Group, Inc.

    One
Montgomery Street, 37th Floor

    San
Francisco, California 94104

    

    December
15, 2008

    

    Dear
Thom:

    

    On February 1, 2006, you entered into
an EMPLOYMENT AGREEMENT with Thomas Weisel Partners Group, Inc., a Delaware
corporation (“TWPG
Inc.” and, together with its subsidiaries and affiliates and its and
their respective predecessors and successors, the “Firm”), which set forth the
terms and conditions of your employment with the Firm, and that agreement was
amended on September 12, 2007 (as amended, the “Prior
Agreement”).

    

    You and
the Firm wish to amend and restate the Prior Agreement in its entirety, pursuant
to the terms and conditions set forth in this EMPLOYMENT AGREEMENT (this “Agreement”), and this
Agreement sets forth the ongoing terms and conditions of your employment with
the Firm.

    

    1.           Employment

    

    TWPG Inc. does hereby employ you and
you do hereby accept employment as Chief Executive Officer of TWPG
Inc.  You shall have all the duties, responsibilities and authority
normally attendant to the office of Chief Executive Officer of the Firm, and you
shall render services consistent with such positions on the terms set forth
herein.  As Chief Executive Officer of the Firm, you shall report
solely and directly to the Board.  In addition, you shall have such
other executive and managerial powers and duties with respect to the Firm as may
reasonably be assigned to you by the Board, to the extent consistent with your
position and status as set forth above.  In no event shall your
duties, responsibilities and authority be less than those initially performed by
you as Chief Executive Officer.  All other employees of the Firm shall
report to you, either directly or through such other personnel as the Board or
you may designate.  Subject to the discretion of the Board, you may
also be designated as Chairman of the Board.

    

    You agree to devote substantially all
of your business time, labor, skill and energies to the business and affairs of
the Firm during the Employment Period, subject to periods of vacation and sick
leave to which you are entitled.  Except as otherwise provided below,
during the Employment Period, you will not render any business, commercial or
professional services to any individual or any entity that is not part of the
Firm.  However, you may serve on corporate, civic or charitable
boards, manage personal investments, deliver lectures or fulfill speaking
engagements, so long as these activities do not significantly interfere with
your performance of your responsibilities under this Agreement and any service
on a corporate, civic or charitable board is pre-approved by the
Board.  The Firm has discussed with you the activities that you are
conducting at the time of this Agreement and agrees that these activities, as
well as any substitute activities that are similar in nature and scope, will not
significantly interfere with your responsibilities under this
Agreement.

    

    2.           Term of
Employment

    

    Subject to Section 8, the term of
your employment commenced on the original effective date of the Prior Agreement
and shall end on December 31, 2009 (such period, the “Initial Employment
Period”).  After the Initial Employment Period your term of
employment shall be automatically extended for successive two-year periods,
subject to Section 8 and unless otherwise agreed in writing by you and the
Firm 90 days prior to the end of such periods.  References in
this Agreement to “your
employment” are to your employment under this Agreement.

    

    3.           Board
Membership

    

    During the Employment Period, TWPG Inc.
shall take all reasonable action to cause you to be appointed or elected to the
Board, and to serve as Chairman of the Board, subject to any applicable laws,
rules and regulations and any corporate governance policies and practices of
TWPG Inc.  In the event that, in the reasonable judgment of the Board,
based on its consideration of applicable legal, regulatory or corporate
governance (including stock exchange) requirements, the Board determines that
the Firm should split the function of Chairman of the Board and Chief Executive
Officer, you may be replaced as Chairman of the Board (but not as Chief
Executive Officer) without it being considered a termination of your employment
hereunder or otherwise a breach by TWPG Inc. of this Agreement.

    

    4.           Location

    

    In connection with your employment by
the Firm, you shall be based at the headquarters of TWPG Inc. in San Francisco,
California, except for travel reasonably required for the Firm’s
business.

    

    5.           Compensation

    

    (a)           Base
Salary.  During the Employment Period, subject to your
continued employment hereunder, you shall be paid an annualized base salary (the
“Base Salary”) of U.S.
$200,000, payable in semi-monthly installments.  Your base salary
shall be reviewed annually by the Firm, and may be increased (but not decreased)
at each such annual review.

    

    (b)           Annual
Bonus.  During the Employment Period, subject to your continued
employment hereunder, you may be awarded an annual bonus (the “Bonus”) pursuant to the
Thomas Weisel Partners Group, Inc. Bonus Plan.

    

    (c)           Equity
Compensation.  During the Employment Period, subject to your
continued employment hereunder, you shall be eligible to participate in all
equity incentive plans for senior executives of the Firm as may be in effect
from time to time, in accordance with the terms of any such plan.

    

    6.           Employee Benefit
Plans

    

    During the Employment Period, subject
to your continued employment hereunder, you shall be eligible to participate in
each employee retirement and welfare benefit plan and program of the type made
available to the Firm’s employees generally, and senior executives specifically,
in accordance with their terms and as such plans and programs may be in effect,
which may include from time to time, without limitation, savings, profit-sharing
and other retirement plans or programs, 401(k), medical, dental, flexible
spending account, hospitalization, short-term and long-term disability and life
insurance plans.

    

    7.           Other Employee
Benefits

    

    (a)           Vacation.  You
will be entitled to paid annual vacation during the Employment Period (totaling
at least four weeks in each calendar year) on a basis that is at least as
favorable as that provided to you as of the date of this Agreement.

    

    (b)           Reimbursement of Business
Expenses.  You will be reimbursed for all reasonable travel,
entertainment and other business expenses incurred by you in performing your
responsibilities under this Agreement, subject to the Firm’s normal policies and
practices (including appropriate documentation requirements) for senior
executives.

    

    (c)           Facilities.  During
the Employment Period, you will be provided with office space, facilities,
secretarial support and other business and personal services consistent with
your position on a basis that is at least as favorable as that provided to you
as of the date of this Agreement; provided, however, that such
support and services shall be subject to periodic review and modification by the
Compensation Committee in its sole discretion.

    

    8.           Early Termination of Your
Employment

    

    (a)           No Reason
Required.  You or TWPG Inc. may terminate your employment at
any time for any reason, or for no reason, subject to compliance with
Section 8(e).

    

    (b)           Termination by TWPG Inc. for
Cause.

    

    (1)           TWPG
Inc. may terminate your employment under any of the following circumstances, and
such termination shall be considered “for Cause”:

    

    (A)           Your
continued and willful failure to perform substantially your responsibilities to
the Firm under this Agreement.  “Cause” does not, however,
include any such failure after TWPG Inc. gives you a Termination Notice without
Cause, or you give the Firm a Termination Notice for Good Reason, in each case
in accordance with Section 8(e).

    

    (B)           Your
willful engagement in illegal conduct, fraud, embezzlement or gross misconduct,
in each case, that causes financial or reputational harm to the
Firm.

    

    (C)           Your
commission or conviction of, or plea of guilty or nolo contendere to, a
felony.

    

    (D)           Your
willful and material breach or violation of (i) this Agreement, the
Partners’ Equity Agreement, the Pledge Agreement or any other written agreement
between you and the Firm, or (ii) the code of conduct and ethics of TWPG
Inc. or any other Firm policy in respect of insider trading, hedging or
confidential information.

    

    (E)           Your
willful attempt to obstruct or willful failure to cooperate with any
investigation authorized by the Board or any governmental or self-regulatory
entity.

    

    (F)           Your
disqualification or bar by any governmental or self-regulatory authority from
serving in the capacity contemplated by this Agreement or your loss of any
governmental or self-regulatory license that is reasonably necessary for you to
perform your responsibilities to the Firm under this Agreement, if (i) the
disqualification, bar or loss continues for more than 90 days and
(ii) during that period the Firm uses its good faith efforts to cause the
disqualification or bar to be lifted or the license replaced.  While
any disqualification, bar or loss continues during your employment, you will
serve in the capacity contemplated by this Agreement to whatever extent legally
permissible and, if your employment is not permissible, you will be placed on
leave (which will be paid to the extent legally permissible).

    For this
definition of Cause, (i) no act or omission by you will be “willful” unless
it is made by you in bad faith or without a reasonable belief that your act or
omission was in the best interests of the Firm and (ii) any act or omission
by you based on authority given pursuant to a resolution duly adopted by the
Board or on the advice of counsel for the Firm will be deemed made in good faith
and in the best interests of the Firm.

    

    (2)           To
terminate your employment “for Cause”, the Board must determine in good faith
that Cause has occurred and TWPG Inc. must comply with
Section 8(e).

    

    (3)           TWPG
Inc. may place you on paid leave for up to 30 consecutive days while it
determines whether there is a basis to terminate your employment for
Cause.  This leave will not constitute Good Reason.

    

    (c)           Termination by You for Good
Reason.

    

    (1)           You
may terminate your employment under the following circumstances and such
termination shall be considered “for Good Reason”:

    

    (A)           Any
material and adverse change in your title, position or duties with the Firm
(including by reason of removal or failure to be elected or re-elected as a
director, other than as stipulated in the last sentence of Section 3
hereof).

    

    (B)           Any
failure by TWPG Inc. to provide you with authority, responsibilities and
reporting relationship as provided in Section 1 or any material and adverse
reduction in your authority, responsibilities or reporting relationship, in each
case other than any isolated, insubstantial and inadvertent failure by TWPG Inc.
that is not in bad faith and is cured promptly on your giving notice to TWPG
Inc.

    

    (C)           The
Firm moving its principal executive offices outside the San Francisco,
California metropolitan area.

    

    (D)           A
material breach by the Firm of any of its obligations to you under this
Agreement.

    

    (E)           Any
purported termination by TWPG Inc. of your employment that is in breach of this
Agreement.

    

    (F)           Any
failure by TWPG Inc. to maintain a bonus plan and/or equity incentive plan
(and/or equivalent corporate compensation policies) which when taken together
are substantially comparable to the plans described in Sections 5(b) and
(c) above; provided that, any reasonable period during which such a plan or
policy is not maintained and during which TWPG Inc. is in good faith seeking
board of directors or stockholder approval of the renewal or replacement of any
such plan or policy shall, during such reasonable period, not be deemed a
failure by TWPG Inc. to maintain such a plan or policy.

    

    (2)           To
terminate your employment “for Good Reason”, Good Reason must have occurred and
you must comply with Section 8(e).  However, (A) if you do
not give a Termination Notice within 90 days after you have knowledge that
an event constituting Good Reason has occurred, the event will no longer
constitute Good Reason and (B) you must give the Firm a 30-day period to
cure after notice of the first event constituting Good Reason under
Section 8(c).

    

    (d)           Termination on Disability or
Death.

    

    (1)           TWPG
Inc. may terminate your employment upon your Disability.  For purposes
of this Agreement, “Disability” means your
absence from your responsibilities with TWPG Inc. on a full-time basis for
180 days in any consecutive 12 months as a result of incapacity due to
mental or physical illness or injury.  If TWPG Inc. determines in good
faith that your Disability has occurred, it may give you Termination
Notice.  If within 30 days of the Termination Notice you do not
return to full-time performance of your responsibilities, your employment will
terminate.  If you do return to full-time performance in that 30-day
period, the Termination Notice will be cancelled for all purposes of this
Agreement.  Except as provided in this Section 8(d), any of your
incapacity due to mental or physical illness or injury will not affect TWPG
Inc.’s obligations under this Agreement.

    

    (2)           Your
employment will terminate automatically on your death.

    

    (e)           Advance Notice Generally
Required.

    

    (1)           To
terminate your employment before the end of the Employment Period, either you or
TWPG Inc. must provide a Termination Notice to the other.  A “Termination Notice” is a
written notice that states the specific provision of this Agreement on which
termination is based, including, if applicable, the specific clause of the
definition of Cause or Good Reason and a reasonably detailed description of the
facts that permit termination under that clause.  The failure to
include any fact in a Termination Notice that contributes to a showing of Cause
or Good Reason does not preclude either party from asserting that fact in
enforcing its rights under this Agreement.

    

    (2)           You
and TWPG Inc. agree to provide 90 days’ advance Termination Notice of any
termination prior to the end of the Employment Period or prior to any
non-extension of the Employment Period in accordance with Section 2, unless
your employment is terminated by TWPG Inc. for Cause or because of your
Disability or death.  Accordingly, the effective date of early
termination of your employment will be 90 days after Termination Notice is
given except that (A) the effective date will be the date of TWPG Inc.’s
Termination Notice if your employment is terminated by TWPG Inc. for Cause,
although TWPG Inc. may provide a later effective date in the Termination Notice,
(B) the effective date will be 30 days after Termination Notice is
given if your employment is terminated because of your Disability, and
(C) the effective date will be the time of your death if your employment is
terminated because of your death.  TWPG Inc. may elect to place you on
paid leave for all or part of the advance notice
period.  Notwithstanding this Section 8(e)(2), if you die or
become Disabled during your employment but after you provide a valid Termination
Notice with Good Reason or TWPG Inc. provides Termination Notice without Cause,
your termination will be treated as a termination with Good Reason, effective as
of the date of your death or Disability.  The effective date of
termination of your employment is referred to as the “Date of Termination” in this
Agreement.

    

    (3)           Within
five (5) business days following the delivery of a Termination Notice by you to
the Firm or by the Firm to you, the Firm will provide you with a draft form of a
separation agreement and you and the Firm agree to use all reasonable efforts to
finalize the terms of that separation agreement on or before the Date of
Termination.

    

    9.           TWPG Inc.’s Obligations in
Connection with Your Termination

    

    (a)           General
Effect.  On termination in accordance with Section 8, your
employment will end and the Firm will have no further obligations to you except
as provided in this Section 9 (other than pursuant to the employee benefit
plans and programs established by the Firm pursuant to which you have accrued
amounts and benefits).

    

    (b)           For Good Reason or Without
Cause.  If, during the Employment Period, TWPG Inc. terminates
your employment without Cause or you terminate your employment for Good
Reason:

    

    (1)           TWPG
Inc. will pay you, in a lump sum, the following as of the end of your
employment:  your unpaid Base Salary for periods prior to your
termination, and pay with respect to any of your accrued but unused vacation,
any accrued expense reimbursements and other cash entitlements, and any unpaid
but vested Bonus (the sum of such amounts, your “Accrued
Compensation”).  In addition, TWPG Inc. will timely pay you any
amounts and provide you any benefits that are required, or to which you are
entitled, under any plan, contract or arrangement of the Firm, including any
unpaid compensation deferred by you (together with any interest and/or earnings
through the end of your employment) other than pursuant to a tax-qualified plan
which is payable as a result of your termination of employment (together, the
“Other
Benefits”).

    

    (2)           TWPG
Inc. will pay you, in a lump sum, on the sixtieth (60th) day
following the Date of Termination, the amount of your remaining Base Salary from
the Date of Termination through the end of the then-existing Employment Period
(solely for purposes of this Clause (A), the then-existing Employment Period
shall be determined as if your employment were not then
terminated).

    

    (3)           TWPG
Inc. will pay you in a lump sum, on the sixtieth (60th) day
following the Date of Termination, an amount equal to the sum of (A) the
average of the Bonuses paid or payable to you for the three fiscal years ending
before Termination Notice is given (your “Historic Bonus”) plus
(B) the product of your Historic Bonus multiplied by a fraction, the
numerator of which shall be the number of days elapsed since the original
effective date of the Prior Agreement (or if such termination occurs after
December 31, 2009, the number of days elapsed since this Agreement was last
renewed in accordance with Section 2), and the denominator of which shall
be the number of days in the Initial Employment Period (or if such termination
occurs after December 31, 2009, 730 days).  In calculating
your Historic Bonus:

    

    (A)           your
Bonus for each of the 2003, 2004 and 2005 fiscal years will deemed to be
$1,000,000; and

    

    (B)           compensation
will be deemed paid or payable even if it was deferred and any Bonus for a
fiscal year for which you were employed for less than the full fiscal year will
be annualized.

    

                           (4)           All
stock options issued by TWPG Inc. to you will vest and become immediately
exercisable and will remain exercisable for a period of 12 months after the
end of your employment (or, if earlier, until they would have expired but for
your termination).  All restricted stock, restricted stock units and
other equity-based compensation awarded by TWPG Inc. to you will vest and become
immediately payable.  The benefits in this Section 9(b)(4) are
referred to as “Accelerated
Vesting”.

    

    (5)           For
24 months following the Date of Termination, you, your spouse and your
dependents will continue to be entitled to participate in each of the Firm’s
employee benefit and welfare plans providing for medical, dental,
hospitalization or life insurance on a basis that is at least as favorable as in
effect immediately before Termination Notice was given (the “Welfare
Benefits”).  However, if the Firm’s plans do not permit you,
your spouse or your dependents to participate on this basis, TWPG Inc. will
provide Welfare Benefits (with the same after-tax effect for you) outside of the
plans.  If you become employed during such 24-month period and are
eligible for coverage from your new employer, the Welfare Benefits will be
secondary to your new coverage (if the Firm reimburses you for any increased
cost and provides any additional benefits that are necessary to provide you with
the full Welfare Benefits).

    

    (c)           For Cause or Without Good
Reason.  If TWPG Inc. terminates your employment for Cause or
you terminate your employment without Good Reason, TWPG Inc. will pay your
Accrued Compensation and Other Benefits.

    

    (d)           For Your Disability or
Death.  If, during the Employment Period, your employment
terminates as a result of your death or Disability, TWPG Inc. will pay your
Accrued Compensation and Other Benefits.

    

    (e)           Condition.   TWPG
Inc. will not be required to make the payments and provide the benefits stated
in this Section 9 unless and until you execute and deliver to TWPG Inc., within
fifty (50) days following the Date of Termination, a release of claims releasing
the Firm, its affiliates, and each member of the Firm and any of their
respective past or present officers, directors, employees or agents from any and
all liabilities to you, and you do not revoke such release within any period
permitted under applicable law.  This agreement will be in a form
reasonably and mutually satisfactory to you and TWPG Inc.; provided that, in the
event of your termination under any of the circumstances described in Section
9(b) through 9(d), no such release shall be required prior to the payment of any
Accrued Compensation or Other Benefits.

    

    (f)           Code Section
409A.

    

    (1)           You
and the Firm agree that, with respect to any payments or benefits described in
Section 9 that constitute a deferral of compensation which is subject to Section
409A of the Internal Revenue Code of 1986, as amended (the “Code”), you and the
firm will use their respective best efforts to ensure that the termination of
your employment shall mean a “separation from service” within the meaning of
Section 409A of the Code and the regulations promulgated thereunder, including
Treasury Regulation Section 1.409A-1(h) (a “Separation from
Service”).  Notwithstanding any provision to the contrary in this
Agreement, if you are deemed by the Firm at the time of your Separation from
Service to be a “specified employee” for purposes of Section 409A(a)(2)(B)(i) of
the Code, to the extent delayed commencement of any portion of the benefits to
which you are entitled under this Agreement is required in order to avoid a
prohibited distribution under Section 409A(a)(2)(B)(i) of the Code, such portion
of your benefits shall not be provided to you prior to the earlier of (A) the
expiration of the six-month period measured from the date of your Separation
from Service with the Firm or (B) the date of your death.  Upon the
first business day following the expiration of the applicable Code Section
409A(a)(2)(B)(i) period, all payments deferred pursuant to this Section 8(f)
shall be paid in a lump sum to you (or your estate or beneficiaries), and any
remaining payments due under the Agreement shall be paid as otherwise provided
herein.

    

    (2)           In
addition, to the extent that any reimbursements payable pursuant to this
Agreement are subject to the provisions of Code Section 409A, such
reimbursements shall be paid to you no later than December 31 of the year
following the year in which the cost was incurred.  The amount of
expenses reimbursed in one year shall not affect the amount eligible for
reimbursement in any subsequent year, and your right to reimbursement under this
Agreement will not be subject to liquidation or exchange for another
benefit.

    

    (3)           Additionally,
in the event that following the date hereof the Firm or you reasonably
determines that any compensation or benefits payable under this agreement may be
subject to Section 409A of the Code, the Firm and you shall work together
to adopt such amendments to this agreement or adopt other policies or procedures
(including amendments, policies and procedures with retroactive effect), or take
any other commercially reasonable actions necessary or appropriate to
(x) exempt the compensation and benefits payable under this agreement from
Section 409A of the Code and/or preserve the intended tax treatment of the
compensation and benefits provided with respect to this Agreement or
(y) comply with the requirements of Section 409A of the Code and
related Department of Treasury guidance.

    

    10.           Certain
Covenants

    

    (a)           Covenants in Partners’
Equity Agreement.  You agree and acknowledge that you shall
comply with each of the covenants contained in the Partners’ Equity Agreement,
including, without limitation, covenants relating to confidential information,
noncompetition and non-solicitation, in each case in accordance with the terms
thereof.

    

    (b)           Intellectual Property
Rights; Use of Names.  As between you and the Firm, all right,
title and interest, whether known or unknown, in any intellectual property that
is discovered, invented or developed directly or indirectly by, or disclosed to
you, in the course of rendering services under this Agreement or in the course
of rendering services to any predecessors to the Firm, will be the sole and
exclusive property of the Firm.  You agree to do anything reasonably
requested by the Firm in furtherance of perfecting the Firm’s possession of, and
title to, any of such intellectual property.

    

    Without limiting the foregoing under
this Section 10(b), to the extent you have any right, title or interest in
any name, trademark or service mark, whether currently existing or arising in
the future, that includes any of “Thomas Weisel,” “Thomas Weisel Partners,”
“TWP,” “Tailwind” or any name, trade mark or service mark that is derivative of
any of the foregoing, including any domain names relating to any of the
foregoing (collectively, the “Weisel Names”), you have
previously granted to the Firm a worldwide, perpetual, exclusive and
royalty-free right and license, substantially in the form attached as Annex A to
the Prior Agreement, to use the Weisel Names in connection with the business and
affairs, whether currently existing or arising in the future, of the Firm;
provided that you shall be permitted to use your name under any of the
conditions or for any of the purposes listed in Annex B to the Prior
Agreement.  NOTHING IN THIS AGREEMENT, INCLUDING ANY ANNEXES TO THE
PRIOR AGREEMENT REFERENCED HEREIN, SHALL BE CONSTRUED TO PRECLUDE OR OTHERWISE
HAMPER YOU FROM USING (1) YOUR FULL LEGAL NAME, (2) “THOMAS W. WEISEL”, (3)
“THOMAS WEISEL”, (4) “THOM WEISEL” OR (5) ANY OTHER SIMILAR VARIATION OF
YOUR LEGAL NAME, TO PERSONALLY IDENTIFY YOURSELF, WHETHER IN CONNECTION WITH
BUSINESS, PERSONAL OR OTHER MATTERS.

    

    (c)           Tax
Filing.  During the Employment Period, you will duly and
accurately file all required income tax returns and, if requested to do so, will
certify to that effect to the Firm annually on a form specified by the
Firm.

    

    (d)           Return of
Property.  All documents, data, recordings, or other property,
whether tangible or intangible, including all information stored in electronic
form, obtained or prepared by or for you and utilized by you in the course of
your employment with the Firm shall remain the exclusive property of the
Firm.  In the event of the termination of your employment for any
reason, and subject to any other provisions hereof, the Firm reserves the right,
to the extent permitted by law and in addition to any other remedy the Firm may
have, to deduct from any monies otherwise payable to you the following:
(i) the full amount of any specifically determined debt you owe to the Firm
at the time of or subsequent to the termination of your employment with the
Firm, and (ii) the value of the Firm’s property which you retain in your
possession after the termination of your employment with the Firm following the
Firm’s written request for such items’ return and your failure to return such
items within 30 days of receiving such notice.  In the event that
the law of any state or other jurisdiction requires the consent of an employee
for such deductions, this Agreement shall serve as such consent.

    

    11.           Successors

    

    (a)           Payments on Your
Death.  If you die and any amounts become payable under this
Agreement, the Firm will pay those amounts to your estate.

    

    (b)           Assignment by
You.  As this Agreement provides for the personal services to
be performed by you, you may not assign this Agreement.  In addition,
except as required by law, your right to receive payments or benefits under this
Agreement may not be subject to execution, attachment, levy or similar
process.  Any attempt to effect any of the preceding in violation of
this Section 11(b), whether voluntary or involuntary, shall be
void.

    

    (c)           Assumption by any Surviving
Company.  Before the effectiveness of any merger,
consolidation, statutory share exchange or similar transaction (including an
exchange offer combined with a merger or consolidation) involving TWPG Inc. (a
“Reorganization”) or
any sale, lease or other disposition (including by way of a series of
transactions or by way of merger, consolidation, stock sale or similar
transaction involving one or more subsidiaries) of all or substantially all of
the Firm’s consolidated assets (a “Sale”), TWPG Inc. will cause
(1) the Surviving Company to unconditionally assume this Agreement in
writing and (2) a copy of the assumption to be provided to
you.  After the Reorganization or Sale, the Surviving Company will be
treated for all purposes as TWPG Inc. under this Agreement.  The
“Surviving Company”
means (i) in a Reorganization, the entity resulting from the Reorganization
or (ii) in a Sale, the entity that has acquired all or substantially all of
the assets of the Firm.

    

    12.           Certain
Definitions

    

    As used in this Agreement, the
following terms have the following meanings:

    

    “Board” means the Board of
Directors of TWPG Inc.

    

    “Compensation Committee” means
the Compensation Committee of the Board, or any successor to such
committee.

    

    “Employment Period” means the
period commencing on the date of this Agreement and ending on the Date of
Termination, and includes the Initial Employment Period and any subsequent
extension periods after the expiration of the Initial Employment
Period.

    

    “Partners’ Equity Agreement”
means the Partners’ Equity Agreement, dated as of the date hereof, among TWPG
Inc. and the individuals listed on the signature page thereto, as in effect from
time to time.

    

    “Pledge Agreement” means the
Pledge Agreement, dated as of the date hereof, between you and TWPG Inc., as in
effect from time to time.

    

    13.           Dispute
Resolution

    

    Any dispute, controversy or claim
between you and the Firm, arising out of or relating to or concerning the
provisions of this Agreement, your employment with the Firm or otherwise
concerning any rights, obligations or other aspects of your employment
relationship in respect of the Firm, shall be finally resolved in accordance
with the provisions of Section 3.09 of the Partners’ Equity
Agreement.  Without limiting the foregoing, you acknowledge that a
violation on your part of this Agreement would cause irreparable damage to the
Firm.  Accordingly, you agree that the Firm will be entitled to
injunctive relief for any actual or threatened violation of this Agreement in
addition to any other remedies it may have.

    

    14.           Governing
Law

    

    THIS AGREEMENT SHALL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA, WITHOUT
REGARD TO PRINCIPLES OF CONFLICTS OF LAWS.

    

    15.           Miscellaneous

    

    This Agreement shall not supersede any
other agreement, written or oral, pertaining to the matters covered herein,
except to the extent of any inconsistency between this Agreement and any prior
agreement, in which case this Agreement shall prevail.  Notices
hereunder shall be delivered to the Firm at its principal executive office
directed to the attention of TWPG Inc.’s General Counsel, and to you at your
last address appearing in the Firm’s employment
records.    Amounts payable to you pursuant to this
Agreement shall be subject to any applicable withholding required under any
federal, state, local or foreign law, rule or regulation.

    

    This Agreement shall be binding upon
you and the Firm’s permitted successors and assigns.  This Agreement
shall inure to the benefit of and be binding upon the Firm and its
assigns.  This Agreement may not be amended or modified other than by
a written agreement executed by you and TWPG Inc. or its successors, nor may any
provision hereof be waived other than by a writing executed by you or TWPG Inc.
or its successors; provided, that any waiver,
amendment or modification of any of the provisions of this Agreement shall not
be effective against you or the Firm without the written consent of you and TWPG
Inc. or its designee.  No delay or omission in exercising any right
hereunder shall operate as a waiver of such right or any other
right.  A waiver upon any one occasion shall not be considered as a
waiver of any right or remedy on any future occasion.

    

    If any provision of this Agreement 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.  Except as expressly
provided herein, this Agreement shall not confer on any person other than you
and the Firm any rights or remedies hereunder.  The captions in this
Agreement are for convenience of reference only and shall not define or limit
the provisions hereof.

    

    [Remainder
of page intentionally left blank.]

    If the foregoing is in accordance with
your understanding, please kindly confirm your acceptance and agreement by
signing and returning this Agreement which will thereupon constitute an
agreement between you and TWPG Inc., on its behalf and on behalf of its
subsidiaries and affiliates.

    

    
      	 
      	 
      	 
      	 
      	 
      
	 
      	
              Very
      truly yours,

               

              THOMAS
      WEISEL PARTNERS GROUP, INC.

              (on
      its behalf, and on behalf of its subsidiaries and

              affiliates)

               

            	 
      
	 
      	
              By:  

            	 
      	 
      
	 
      	 
      	
              Name:  

            	
              Mark
      Fisher 

            	 
      
	 
      	 
      	
              Title:  

            	
              General
      Counsel and Secretary 

            	 
      
	 
      

    

    

    
      	 
      	 
      	 
      
	
              Agreed
      to and accepted as of the date of this Agreement:

            	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
              Name:
      Thomas W. Weisel

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