Document:

Exhibit 10.10

 

BRETT MARSCHKE

EMPLOYMENT AGREEMENT

 

This Employment Agreement (the “Employment
Agreement”), dated as of              ,
2007, by and between DUFF & PHELPS, LLC, a Delaware limited liability
company (“D&P, LLC”), and Brett Marschke (“Executive”).

 

WHEREAS, in connection with an initial public
offering (the “IPO”) of Duff & Phelps Corporation, a Delaware
corporation (the “Company”), with respect to which D&P, LLC is an
indirect wholly-owned subsidiary, D&P, LLC will become the sole successor
employer to the Executive pursuant to the Prior Employment Agreement; and

 

WHEREAS, the D&P Entities (as defined
below) wish to replace the Prior Employment Agreement in its entirety as set
forth herein; and

 

WHEREAS, Executive acknowledges and agrees
that, by entering into this Employment Agreement, Executive does not have a
basis for asserting “Good Reason” under the Prior Employment Agreement; and

 

WHEREAS, the parties desire to enter into
this Employment Agreement to set forth the terms and conditions for the
employment and executive relationship of Executive with D&P, LLC, the
Company and its subsidiaries (collectively, the “D&P Entities”).

 

NOW, THEREFORE, based upon the foregoing
representations, and expressly intending to be legally bound, thereby and hereby,
the parties agree as follows:

 

1.             Employment. Executive shall serve
as the Executive Vice President and Chief Operating Officer of the Company and
each of the D&P Entities and shall be an employee of D&P, LLC from the
date the registration statement filed in connection with the IPO becomes
effective (the “Effective Date”) through the end of the Term (as defined
below). As the Executive Vice President and Chief Operating Officer of the
Company, Executive shall render executive, policy, and other management
services to the Company of the type customarily performed by persons serving in
similar capacities as Executive and consistent with the past practice of
Executive while serving as the Executive Vice President and Chief Operating
Officer of D&P Acquisitions LLC. During the Term, and excluding any periods
of vacation and sick leave to which Executive is entitled, Executive agrees to
devote substantially all of his business attention and time during normal
business hours to the business and affairs of the D&P Entities and to use
his reasonable best efforts to perform such responsibilities in a commercially
reasonable manner; provided, that Executive may (i) with the consent of
the Board, which consent shall not be unreasonably withheld, serve on civic or
charitable boards or committees, (ii) 

 

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with the consent of the Board, which may be
withheld for any reason, serve on corporate boards or committees, and (iii)
manage his personal investments, so long as such activities under clauses (i),
(ii) and (iii) above do not interfere, with Executive’s responsibilities
hereunder. Executive shall also perform such duties as the board of directors
of the Company (the “Board”) may from time to time reasonably direct. Notwithstanding
the foregoing, Section 7(e) and 8(d) shall become effective as of the date of
this Employment Agreement.

 

2.             Salary. As compensation for
Executive’s services to the Company and other D&P Entities, the Executive
shall be entitled to receive during the Term a salary at the annual rate of $400,000,
which salary may, but need not be, increased from time to time as determined by
the Board (the “Annual Salary”). The Annual Salary shall be payable in
installments in accordance with the normal payroll practices of D&P, LLC. Except
as set forth in this Employment Agreement or as the Board may otherwise
provide, Executive shall not be entitled to receive any additional
compensation, whether in the form of equity or otherwise, for serving as an
officer or director of the D&P Entities.

 

3.             Additional Employment Compensation.

 

(a)           In addition to the Annual Salary, Executive shall be
entitled to receive annual bonus compensation (i) for the fiscal year ended
December 31, 2007, and for each fiscal year thereafter during the Term, in an
amount determined under Section 3(b) below and in the form described in 3(c)
below (for each respective year, the “Annual Bonus”). The cash portion
of the Annual Bonus, if any, shall be payable to Executive on or before March 15
of the year following the fiscal year to which such Annual Bonus relates; provided
that, subject to Section 8 of this Employment Agreement, the Executive is
employed by D&P, LLC as of the last day of the fiscal year to which such
Annual Bonus relates.

 

(b)           The amount of the Annual Bonus for the fiscal year
ended December 31, 2007 and each fiscal year thereafter during the Term shall
be calculated by multiplying the Target Bonus Amount by a fraction (i) the
numerator of which shall be Company EBITDA less Minimum Company EBITDA (which
shall not result in a number less than zero), and (ii) the denominator of which
shall be Target Company EBITDA less Minimum Company EBITDA. By way of example,
if Company EBITDA is equal to Target Company EBITDA then the Annual Bonus shall
be the Target Bonus Amount. Terms used and not defined in this Section 3(b)
shall have the meanings ascribed thereto on Exhibit A.

 

(c)           The form in which the Annual Bonus shall be payable is
as follows: (i) 70% (or such lower percentage as may be elected in accordance
with the procedures set forth below) in cash and (ii) an award of a number of
restricted Class A shares of the Company determined by dividing (a) the
remaining amount of the Annual Bonus by (b) the per share closing price of the Company’s
Class A 

 

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shares
as of the date of such award, rounded down to the nearest whole share, (the “Class
A Award”) which Class A Award shall, subject to Section 8 of this Employment
Agreement, become non-forfeitable as to 1/3 of such award on each of the first
three anniversaries of the date of such award, provided that the Executive’s
employment has not been terminated for Cause, by Executive without Good Reason,
or due to Executive’s death or Disability prior to such anniversary date. On
any date that is no later than June 30 of each fiscal year to which such Annual
Bonus relates, the Executive may make an irrevocable election (an “Election”)
that the percentage of such Annual Bonus that shall be provided in cash be
reduced by up to an additional 15% of such Annual Bonus and that the percentage
of such Annual Bonus that is to be provided in the form of an award of a number
of restricted Class A shares of the Company be increased by an equal percentage
(the “Additional Class A Award”). In the event that the Executive makes
an Election that a percentage of such Annual Bonus in excess of 30%, but no
more than 45%, be provided in the form of an award of restricted Class A shares
of the Company, the Executive shall be awarded an additional number of Class A
shares of the Company equal to the number of shares issuable with respect to
that portion of the award that exceeds 30% of the Annual Bonus (the “Matching
Award”). The Additional Class A Award and the Matching Award shall, subject
to Section 8 of this Employment Agreement, become non-forfeitable as to 1/3 of
such awards on each of the first three anniversaries of the date of such awards
for so long as the Executive remains employed by the Company through the respective
anniversary date.

 

4.             Participation in Employee Benefit Plans and Fringe
Benefits. Executive shall be eligible to participate in any plan
of the D&P Entities, if any, relating to options, equity purchases,
pension, thrift, profit sharing, employee equity ownership, group life
insurance, medical coverage, disability insurance, education, and/or other
retirement or employee benefits, that are available for the benefit of senior
executive officers of the D&P Entities. Executive shall also be eligible to
receive any other fringe benefits provided to senior executive officers of the
D&P Entities during the Term. Participation in these plans and receipt of
these fringe benefits shall not reduce the compensation payable to Executive
under Sections 2 and 3 above. Without limiting the foregoing, (a) the Annual
Bonus shall be included as compensation for purposes of determining Executive’s
entitlement under any supplemental 401(k) plan maintained by the D&P
Entities, if any, and (b) D&P, LLC will recommend to D&P Corp. that
Executive should be eligible to receive a stock option grant in connection with
the IPO pursuant to an agreement in substantially the form attached hereto as Exhibit
B.

 

5.             Term. The initial term of this
Employment Agreement shall be for a period commencing on the Effective Date and
ending on December 31, 2010. The initial term and any automatic renewal as
provided below in this Section, subject to any earlier termination of
employment as provided for under Section 7, is referred to herein as the “Term.”  Unless the parties hereto enter into a new
employment agreement or either party provides thirty (30) days advance notice
of its desire to not to renew this Employment Agreement before the expiration
of the Term (or any continuous subsequent one year renewal term), in the event
that Executive’s 

 

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employment continues after the expiration of
the Term, this Employment Agreement shall continue in effect from year to year
thereafter for successive one year renewal periods upon expiration of the Term.

 

6.             Vacations. Executive shall be
entitled to five (5) weeks of paid vacation leave per year, in accordance with
the vacation policy as then in effect. The timing of paid vacations shall be
scheduled by Executive, considering the reasonable needs of the D&P
Entities.

 

7.             Termination of Employment.

 

(a)           Death or Disability. The Term and Executive’s
employment shall terminate automatically upon Executive’s death. If the Board
determines in good faith that Executive is Disabled at any time during the Term
and gives Executive written notice of such determination, Executive’s
employment shall terminate effective on the 30th day after receipt of such
notice by Executive (the “Disability Effective Date”); provided
that such termination shall not be effective if, within thirty (30) days after
receipt of such notice, Executive has returned to full-time satisfactory
performance of Executive’s duties; provided, further, that, if
such termination is effective, Executive shall be entitled to receive medical
benefits consistent with the Company’s policies from time to time for a period
of two (2) years from the Disability Effective Date. “Disability” or “Disabled”
shall mean, Executive (i) is unable to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment
which can be expected to result in death or can be expected to last for a
continuous period of not less than 12 months; (ii) is, by reason of any
medically determinable physical or mental impairment which can be expected to
result in death or can be expected to last for a continuous period of not less
than 12 months, receiving income replacement benefits for a period of not less
than three months under an accident and health plan covering employees of the
Company; (iii) when used in connection with the exercise of an Incentive Stock
Option following termination of employment, has a disability within the meaning
of Section 22(e)(3) of the Internal Revenue Code of 1986, as amended (the “Code”);
or (iv) solely to the extent necessary to satisfy Section 409A of the Code, has
a “disability” or is “disabled” within the meaning of Section 409A of the Code.

 

(b)           Cause. The Term and Executive’s
employment may be terminated by D&P, LLC for Cause or without Cause. “Cause”
shall mean:  (i) Executive’s commission
of a willful act of fraud, embezzlement or misappropriation of any money or
properties of the D&P Entities (other than an insubstantial and
unintentional misappropriation that has been remedied within ten (10) days
after Executive’s receipt of notice of such misappropriation); (ii) Executive’s
indictment relating to any violation of any federal or state securities law or
fraud; (iii) Executive’s indictment for any felony or crime that causes a
material adverse effect to any of the D&P Entities; (iv) to the extent not
covered by (i) to (iii) above, Executive’s conviction of, or plea of no contest
to, any misdemeanor involving moral turpitude or any felony; (v) Executive’s
being enjoined from violating any federal or state securities law or being
determined to have violated any such law which impairs or prohibits Executive
from performing services or duties under this Employment Agreement; (vi)
Executive engaging in willful or reckless misconduct in connection with any
activity, the purpose or effect of which materially and adversely affects any 

 

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of
the D&P Entities; (vii) Executive becoming barred or prohibited by the Securities
and Exchange Commission from holding Executive’s position with any of the
D&P Entities; and (viii) Executive’s material breach of any of his
obligations under Section 10 of this Employment Agreement.

 

(c)           Retirement. The Term and Executive’s employment
may be terminated by Executive subject to compliance with the notice provisions
set forth in 7(f) below, on or after reaching Retirement Age. “Retirement
Age” shall mean that (i) Executive is 65 years old, or (ii) is 55 years old
and has 15 years of service with the Company.

 

(d)           Good Reason. The Term and Executive’s
employment may be terminated by Executive for any reason, including Good
Reason, subject to compliance with the notice provisions set forth in 7(f)
below. “Good Reason” shall mean any action not consented to by Executive in
writing (which action shall not have been cured within thirty (30) days
following written notice from Executive to the Company specifying that such
action will give rise to a termination of Executive’s employment for Good
Reason) having the following effect or effects: 
(i) a breach of any of material obligations to Executive under this
Employment Agreement or any other material agreement to which Executive and any
of the D&P Entities is a party; (ii) requiring Executive to relocate to a
facility or location more than fifty (50) miles from the location at which he
was primarily located immediately prior to such requirement; (iii) any material
reduction in Executive’s duties or authority as compared to such duties or
authority as of the Effective Date, any adverse alteration in Executive’s
reporting relationship as compared to such reporting relationship as of the
Effective Date or any other material adverse alteration to the terms of
Executive’s employment; or (iv) any reduction in Executive’s base salary.

 

(e)           A “Change in Control” shall
be deemed to have occurred if the event set forth in any one of the following
paragraphs shall have occurred:

 

(i)            any Person is or becomes the
Beneficial Owner, directly or indirectly, of securities of the Company (not
including in the securities beneficially owned by such Person any securities
acquired directly from the Company or its Affiliates) representing 50% or more
of the combined voting power of the Company’s then outstanding securities,
excluding any Person who becomes such a Beneficial Owner in connection with a
transaction described in clause (a) of paragraph (iii) below; or

 

(ii)           the following individuals cease for
any reason to constitute a majority of the number of directors then serving:
individuals who, on the date hereof, constitute the Board and any new director
(other than a director whose initial assumption of office is in connection with
an actual or threatened election contest, including but not limited to a
consent solicitation, relating to the election of directors of the Company)
whose appointment or election by the Board or nomination for election by the
Company’s stockholders was approved or recommended by a vote of at least
two-thirds (2/3) of the directors then still in office who either were 

 

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directors
on the date hereof or whose appointment, election or nomination for election
was previously so approved or recommended; or;

 

(iii)          there is consummated a merger or consolidation
of the Company or any direct or indirect subsidiary of the Company with any
other corporation or other entity, other than (a) a merger or consolidation
which results in the voting securities of the Company outstanding immediately
prior to such merger or consolidation continuing to represent (either by
remaining outstanding or by being converted into voting securities of the
surviving entity or any parent thereof), in combination with the ownership of
any trustee or other fiduciary holding securities under an employee benefit
plan of the Company or any subsidiary of the Company, at least 50% of the
combined voting power of the securities of the Company or such surviving entity
or any parent thereof outstanding immediately after such merger or consolidation
or (b) a merger or consolidation effected to implement a recapitalization of
the Company (or similar transaction) in which no Person is or becomes the
Beneficial Owner, directly or indirectly, of securities of the Company (not
including in the securities Beneficially Owned by such Person any securities
acquired directly from the Company or its Affiliates) representing 50% or more
of the combined voting power of the Company’s then outstanding securities; or

 

(iv)          the stockholders of the Company approve
a plan of complete liquidation or dissolution of the Company or there is
consummated an agreement for the sale or disposition by the Company of all or
substantially all of the Company’s assets, other than a sale or disposition by
the Company of all or substantially all of the Company’s assets to an entity,
at least 50% of the combined voting power of the voting securities of which are
owned by stockholders of the Company in substantially the same proportions as
their ownership of the Company immediately prior to such sale.

 

Notwithstanding the foregoing, a “Change in
Control” shall not be deemed to have occurred by virtue of the consummation of
any transaction or series of integrated transactions immediately following
which the record holders of the common stock of the Company immediately prior
to such transaction or series of transactions continue to have substantially
the same proportionate ownership in an entity that owns all or substantially
all of the assets of the Company immediately following such transaction or
series of transactions.

 

(f)            Notice of Termination. Any termination of Executive’s
employment with or without Cause, or by Executive for Good Reason, without Good
Reason or for retirement, shall be communicated by the terminating party through
a Notice of Termination; provided that, in the event that the Executive
terminates employment for Good Reason, such Notice of Termination be delivered
by the Executive within ninety (90) days of the initial existence of the 

 

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condition
providing the basis for such Good Reason. For purposes of this Employment
Agreement, a “Notice of Termination” means a written notice that:  (i) indicates the specific termination
provision in this Employment Agreement relied upon; (ii) sets forth in
reasonable detail the facts and circumstances claimed to provide a basis for
termination of Executive’s employment under the provision so indicated; and
(iii) specifies the Date of Termination. The failure to set forth in the Notice
of Termination any fact or circumstance which contributes to a showing of Good
Reason or Cause, as the case may be, shall not waive any right of the parties
hereunder or preclude any party, respectively, from asserting such fact or
circumstance in enforcing any rights hereunder.

 

(g)           Date of Termination. “Date of Termination” means
(i) if Executive’s employment is terminated for Cause or by Executive for Good
Reason, the date that is one day after the last day of the applicable cure or
notice period, (ii) if Executive’s employment is terminated other than for
Cause, death or Disability, or if Executive resigns other than for Good Reason,
the Date of Termination shall be the date on which the terminating party
notifies Executive or the Company, as the case may be, of such termination and
(iii) if Executive’s employment is terminated by reason of death or Disability,
the Date of Termination shall be the date of death of Executive or the
Disability Effective Date, as the case may be.

 

8.             Obligations of the D&P Entities Upon
Termination.

 

(a)           Termination without Cause or by Executive with Good
Reason. If
Executive’s employment is terminated without Cause (other than termination by
reason of Executive’s death or Disability), or Executive terminates employment
for Good Reason, and Executive executes a general release in the form attached
hereto as Exhibit C, Executive shall be paid or provided, (i) within
thirty (30) days after the applicable Date of Termination, a cash lump sum
payment equal to the sum of: (a) any accrued but unpaid salary as payable
through such Date of Termination; (b) Executive’s Annual Salary as of the Date
of Termination; and (c) the most recent Annual Bonus earned by the Executive
pursuant to this Employment Agreement or, if higher, the Target Bonus Amount as
of the Date of Termination, (ii) a prorated portion of Executive’s Annual Bonus
through the Date of Termination, payable when and if it otherwise would have
been payable, (iii) full and immediate vesting of any equity or equity-based
awards (including stock options) then held by Executive,  (iv) should Executive elect continuation of
the medical and dental benefits under COBRA, payment of Executive’s costs for
such coverage for a period of up to one year following the applicable Date of
Termination; and (v) any other amounts or benefits required to be paid or
provided, or which Executive is entitled to receive, as of the applicable Date
of Termination, as provided for under any plan, program, policy, contract or
agreement of the D&P Entities, including any severance plan or policy which
is then applicable to Executive; provided, however, that if Executive is
employed by an employer that is not a D&P Entity during the period provided
for under Subsection (iv) above and is eligible to receive medical or dental
benefits under such employer’s plans or is 

 

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otherwise
eligible to receive benefits under any governmental plan, then Executive shall
no longer be entitled to such payments.

 

(b)           Termination for Cause, by Executive without Good
Reason or due to Executive’s death or Disability. If Executive’s employment is
terminated for Cause, Disability or death, or Executive terminates employment
other than for Good Reason, then the D&P Entities shall have no further
obligation, to provide any remuneration, accruals, or other benefits to
Executive, other than the obligation of D&P, LLC to pay to Executive, to
the extent not theretofore paid or provided, in a cash lump sum payment within
thirty (30) days after such Date of Termination equal to the Annual Salary
through the applicable Date of Termination, or as required by law, provided
that if Executive’s employment is terminated for Disability or death, (i) Executive
shall receive a pro rata share of any Annual Bonus to which Executive may be
entitled until the related Date of Termination, (ii) Executive shall receive
any unvested portion of any Class A Award or any Additional Class A Award (but
not any Matching Award), and (iii) any unvested equity awarded to Executive prior
to the date of this Employment Agreement shall become vested.

 

(c)           Retirement. If Executive retires after reaching Retirement Age,
then the D&P Entities shall have no further obligation, to provide any
remuneration, accruals, or other benefits to Executive, other than (i) the
obligation of D&P, LLC to pay to Executive, to the extent not theretofore
paid or provided, in a cash lump sum payment within thirty (30) days after such
Date of Termination equal to the Annual Salary through the Date of Termination,
or as required by law, and (ii) provided that Executive executes a general
release in the form attached hereto as Exhibit C, any unvested equity
awarded to Executive under this Employment Agreement shall become vested.

 

(d)           Termination and Change In Control.  The
Executive shall be entitled to receive the payments described in this Section 8(c)
upon the termination of the Executive’s employment within eighteen (18) months
following a Change in Control provided, that Executive executes a
general release in the form attached hereto as Exhibit C, unless such
termination is (i) for Cause, (ii) by reason of death or Disability, or (iii)
by the Executive without Good Reason. In lieu of any further salary payments to
the Executive for periods subsequent to the Date of Termination and in lieu of
any severance benefit otherwise payable to the Executive, Executive shall be
entitled to receive, (i) within thirty (30) days after the applicable Date of
Termination, a cash lump sum payment equal to the sum of (A) any accrued but
unpaid salary as payable through such Date of Termination, and (B) two times
the sum of (1) Executive’s Annual Salary as of the Date of Termination, and (2)
the most recent Annual Bonus earned by the Executive pursuant to this
Employment Agreement or, if higher, the Target Bonus Amount as of the Date of
Termination, (ii) a prorated portion of Executive’s Annual Bonus through the
Date of 

 

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Termination,
payable when and if it otherwise would have been payable, (iii) full and
immediate vesting of any equity or equity-based awards (including stock
options) then held by Executive,  (iv)
should Executive elect continuation of the medical and dental benefits under
COBRA, payment of Executive’s costs for such coverage for a period of up to one
year following the applicable Date of Termination; and (v) any other amounts or
benefits required to be paid or provided, or which Executive is entitled to
receive, as of the applicable Date of Termination, as provided for under any
plan, program, policy, contract or agreement of the D&P Entities, including
any severance plan or policy which is then applicable to Executive; provided,
however, that if Executive is employed by an employer that is not a D&P
Entity during the period provided for under Subsection (iv) above and is
eligible to receive medical or dental benefits under such employer’s plans or
is otherwise eligible to receive benefits under any governmental plan, then
Executive shall no longer be entitled to such payments. For purposes of this
Employment Agreement, the Executive’s employment shall be deemed to have been
terminated without Cause following a Change in Control or by the Executive with
Good Reason following a Change in Control if (x) the Executive’s employment is
terminated without Cause prior to a Change in Control (whether or not a Change
in Control ever occurs) and such termination was at the request or direction of
a Person who has entered into an agreement with the Company the consummation of
which would constitute a Change in Control (y) the Executive’s employment is
terminated without Cause in the ninety (90) period prior to or in anticipation
of a Change in Control (whether or not a Change in Control ever occurs) or (z)
if the Executive terminates his employment for Good Reason prior to a Change in
Control (whether or not a Change in Control ever occurs) and the circumstance
or event which constitutes Good Reason occurs at the request or direction of
such Person.

 

(e)           Adjustments to Payments. If it is reasonably determined
that any payment or distribution by the D&P Entities to or for the benefit
of Executive, whether paid or payable or distributed or distributable pursuant
to the terms of this Employment Agreement or otherwise pursuant to or by reason
of any other agreement, policy, plan, program or arrangement, including without
limitation any stock option, stock appreciation right or similar right, or the
lapse or termination of any restriction on or the vesting or exercisability of
any of the foregoing (the “Payments”) is subject to the excise tax
imposed by Section 4999 of the Code, (the “Excise Tax”), Executive shall
be entitled to an additional amount (the “Gross Up Payment”) such that
the net amount retained by the Executive, after deduction of any Excise Tax on
the Payments and any federal, state and local income and employment taxes and
Excise Tax upon the Gross-Up Payment, and after taking into account the phase
out of itemized deductions and personal exemptions attributable to the Gross-Up
Payment, shall be equal to the Payments.

 

(f)            For purposes of determining whether any of the
Payments will be subject to the Excise Tax and the amount of such Excise Tax,
(i) all of the 

 

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Payments
shall be treated as “parachute payments” (within the meaning of section
280G(b)(2) of the Code) unless, in the opinion of tax counsel (“Tax Counsel”)
reasonably acceptable to the Executive and selected by the accounting firm
which was, immediately prior to the Change in Control, the Company’s
independent auditor (the “Auditor”), such payments or benefits (in whole
or in part) do not constitute parachute payments, including by reason of
section 280G(b)(4)(A) of the Code, (ii) all “excess parachute payments” within
the meaning of section 280G(b)(l) of the Code shall be treated as subject to
the Excise Tax unless, in the opinion of Tax Counsel, such excess parachute
payments (in whole or in part) represent reasonable compensation for services actually
rendered (within the meaning of section 280G(b)(4)(B) of the Code) in excess of
the base amount (as defined in section 280G(b)(3) of the Code) (the “Base
Amount”) allocable to such reasonable compensation, or are otherwise not
subject to the Excise Tax, and (iii) the value of any noncash benefits or any
deferred payment or benefit shall be determined by the Auditor in accordance
with the principles of sections 280G(d)(3) and (4) of the Code and applicable
guidance under Treasury Regulation § 1.280G-1, and U.S. Treasury Department
rulings and releases. For purposes of determining the amount of the Gross Up
Payment, the Executive shall be deemed to pay federal income tax at the highest
marginal rate of federal income taxation in the calendar year in which the
Gross Up Payment is to be made and state and local income taxes at the highest
marginal rate of taxation in the state and locality of the Executive’s
residence on the Date of Termination, net of the maximum reduction in federal
income taxes which could be obtained from deduction of such state and local
taxes.

 

(g)           In the event that the Excise Tax is finally determined
to be less than the amount taken into account hereunder in calculating the
Gross-Up Payment, the Executive shall repay, within five (5) business days
following the time that the amount of such reduction in the Excise Tax is
finally determined, the portion of the Gross Up Payment attributable to such
reduction (plus that portion of the Gross Up Payment attributable to the Excise
Tax and federal, state and local income and employment taxes imposed on the
Gross Up Payment being repaid by the Executive), to the extent that such
repayment results in a reduction in the Excise Tax and a dollar-for-dollar
reduction in the Executive’s taxable income and wages for purposes of federal,
state and local income and employment taxes, plus interest on the amount of
such repayment at 120% of the rate provided in section 1274(b)(2)(B) of the
Code. In the event that the Excise Tax is determined to exceed the amount taken
into account hereunder in calculating the Gross-Up Payment (including by reason
of any payment the existence or amount of which cannot be determined at the
time of the Gross Up Payment), the Executive shall be entitled to an additional
Gross Up Payment in respect of such excess (plus any interest, penalties or
additions payable by the Executive with respect to such excess) within five (5)
business days following the time that the amount of such excess is finally
determined. The Executive and D&P, LLC shall each reasonably cooperate with
the other in connection with any administrative or judicial proceedings
concerning the existence or amount of liability for Excise Tax with respect to
the Total Payments.

 

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(h)           409A Compliance. Notwithstanding the foregoing, if any amount to be
paid to Executive pursuant to this Section 8 is “deferred compensation” subject
to Section 409A of the Code and the rules and regulations thereunder (“Section
409A”), and if the Executive is a “Specified Employee” (as defined under
Section 409A) as of the date of Executive’s termination of employment
hereunder, then, to the extent necessary to avoid the imposition of excise
taxes or other penalties under Section 409A, the payment of benefits, if any,
scheduled to be paid by the D&P Entities to Executive hereunder during the
first six (6) month period following the date of a termination of employment
hereunder shall not be paid until the date which is the first business day following
the six-month anniversary of Executive’s termination of employment for any
reason other than death. Any termination of employment or services from the
D&P Entities which triggers a payment of “deferred compensation” subject to
Section 409A of the Code shall, if applicable, meet the requirements of a “separation
from service” under Section 409A of the Code. In addition, the parties shall
cooperate fully with one another to ensure compliance with Section 409A of the
Code, including, without limitation, adopting amendments to arrangements
subject to Section 409A and operating such arrangements in compliance with
Section 409A; provided, however, nothing in this subsection (g) shall
require Executive to reduce his compensation.

 

(i)            409A Excise Tax. Subject to Executive’s compliance with Section 8(g)
above, if any portion of the Executive’s compensation less regular federal,
state and local income and employment taxes (“Compensation”) becomes
subject to the excise tax or interest penalties under Section 409A(a)(1)(B) of
the Code (“409A Excise Tax”), Executive shall be entitled to an
additional amount (the “409A Gross Up Payment”) such that the net amount
retained by the Executive, after deduction of any 409A Excise Tax on the
Compensation and any federal, state and local income and employment taxes and
the 409A Excise Tax upon the 409A Gross-Up Payment, and after taking into
account the phase out of itemized deductions and personal exemptions
attributable to the 409A Gross-Up Payment, shall be equal to the Compensation. This
subsection (h) shall be of no effect if the Company provides Executive with a
minimum of thirty (30) days advance notice of a potential Section 409A of the
Code violation and proposes a reasonable correction to Executive at such time,
and Executive refuses to respond or exercise good faith in agreeing to required
changes. Notwithstanding the foregoing, nothing in this subsection (h) shall
require Executive to reduce his compensation.

 

9.             No Assignments; Successors. This
Employment Agreement is personal to each of the parties hereto. Neither party
may assign or delegate any rights or obligations hereunder without first
obtaining the written consent of the other, provided that, in the event
of the death of Executive, all rights to receive payments hereunder shall
become rights of Executive’s estate, and provided  further that D&P,
LLC may assign its rights and obligations hereunder in connection with any sale
of the Company, and shall require any successor (whether direct or indirect, by
purchase, merger, consolidation or otherwise) to all or substantially all of
the 

 

11

 

business and/or assets of the Company to
expressly to assume and agree to perform this Employment Agreement in the same
manner and to the same extent that D&P, LLC would have been required to
perform if no succession had taken place. Notwithstanding anything in this
Employment Agreement to the contrary, each of the D&P Entities shall have
the right to enforce the provisions of Section 10 below.

 

10.           Confidential Information; Noncompetition;
Nonsolicitation.

 

(a)               Executive acknowledges that Executive has and will
have knowledge of certain trade secrets of the D&P Entities, including
information concerning the D&P Entities’ businesses, operations, future
plans, methodologies, and customers. Executive shall hold in a fiduciary
capacity for the benefit of the D&P Entities all secret or confidential
information, knowledge or data relating to the D&P Entities and their
respective businesses, which shall have been obtained by Executive during
Executive’s employment and which shall not be or become public knowledge (other
than by acts by Executive or representatives of Executive in violation of this
Employment Agreement). After termination of Executive’s employment, Executive
shall not, without prior written consent or as may otherwise be required by law
or legal process (provided adequate notice of and opportunity to challenge or
limit the scope of disclosure purportedly so required has been provided by
Executive), allow others to use to their personal advantage, communicate or
divulge any such information, knowledge or data to anyone other than the
D&P Entities and those designated by it or to an attorney retained by
Executive to provide legal advice with respect to this Section 10 and who has
agreed to keep such information confidential.

 

(b)              While employed under this Employment Agreement,
Executive shall comply with the rules and policies of the D&P Entities,
including without limitation the D&P Entities’ code of conduct and
conditions of employment and compliance policies.

 

(c)               Executive agrees promptly to disclose, in writing, all
Innovations (as defined below) to the D&P Entities, to provide all
assistance requested by the D&P Entities, at the D&P Entities’ expense,
in the preservation of the D&P Entities’ interests in any Innovations, and
hereby assigns and agrees to assign to the D&P Entities all rights, title
and interest in and to all worldwide patents, patent applications, copyrights,
trade secrets and other intellectual property or “Moral Rights” in any
Innovation. Furthermore, during the Term, the D&P Entities may use
Executive’s name and image as appropriate in the conduct of its business. “Innovations”
means all developments, improvements, designs, original works, formulas,
processes, software programs, databases, and trade secrets, whether or not
patentable, copyrightable or otherwise protectable, that Executive, whether by
himself or jointly with others, creates, modifies, develops, derives or
implements during the Term, that in any way relates to the D&P Entities’
business.

 

12

 

(d)              Executive acknowledges and agrees that all personal
property, of any nature whatsoever, furnished to Executive by the D&P
Entities in the course of or incident to his employment, belong to the D&P
Entities and promptly shall be returned to the D&P Entities upon
termination of Executive’s employment for any reason.

 

(e)               Executive acknowledges that if Executive were to
become employed by a competing organization, Executive’s new job duties and the
products, services and technology of the competing organization would be so
similar or related to those contemplated by this Employment Agreement that it
would be very difficult for Executive not to rely on or use the D&P
Entities’ trade secrets. Executive further acknowledges that Executive, and any
competing organization, cannot avoid using the trade secret information, due to
the fact that even in the best good faith, Executive cannot as a practical
matter avoid using the knowledge of the D&P Entities’ confidential methods
and trade secrets in Executive’s work with a competing organization. Accordingly,
Executive has not and will not, (i) while employed by the D&P Entities and
(ii) in the event that Executive’s employment is terminated for any reason, for
a period of one year after the Date of Termination (without the written consent
of the Company): directly or indirectly, own, manage, operate, control or
participate in the ownership, management, operation or control of, or be
connected as an officer, employee, partner, director or otherwise with, or have
any financial interest in, any business that engages in any business within a
50-mile radius of any metropolitan area in which the D&P Entities conducted
significant business during the 12-month period immediately preceding the Date
of Termination (1) that competes with any business actively conducted in such
area, at the time such engagement is commenced, by the D&P Entities and (2)
that is of the type of business activity in which Executive was engaged on
behalf of the D&P Entities during such 12-month period; provided
that ownership, for personal investment purposes only, of less than 5% of the
voting stock of any publicly held corporation shall not constitute a violation
hereof.

 

(f)               While employed under this Employment Agreement and for
two years after termination of employment for any reason, Executive shall not,
directly or indirectly, on behalf of Executive or any other person, solicit for
employment or hire (other than for the D&P Entities) any person known by
Executive to be employed by the D&P Entities at the time of such
solicitation or hiring or within the six (6) month period immediately preceding
thereto.

 

(g)              Notwithstanding any other provision in this Employment
Agreement, while employed under this Employment Agreement and for two years
after Executive’s termination of employment for any reason, Executive shall
not, directly or indirectly, on behalf of Executive or any other person,
solicit any Client to become a client and/or customer of Executive or of any
person other than the 

 

13

 

D&P
Entities. For purposes of this Section 10(g), a “Client” is a person,
firm or corporation that is, becomes or is known to be an actual or potential
client or customer of the D&P Entities as a result of a communication or
solicitation by the D&P Entities or agents acting on behalf of the D&P
Entities (whether prior to or after the date hereof).

 

(h)              The provisions of this Section 10 shall remain in full
force and effect until the expiration of the period specified herein
notwithstanding the earlier termination of Executive’s employment hereunder.

 

11.           Specific Performance. Executive
acknowledges that a violation on Executive’s part of any of the covenants
contained in Section 10 hereof would cause immeasurable and irreparable damage
to the D&P Entities. Accordingly, Executive agrees that the D&P
Entities shall be entitled to injunctive relief in any court of competent
jurisdiction for any actual or threatened violation of any such covenant in
addition to any other remedies it may have. Executive agrees that in the event
that any court of competent jurisdiction shall finally hold that any provision
of Section 10 is void or constitutes an unreasonable restriction against
Executive, the provisions of such Section 10 shall not be rendered void but
shall apply to such extent as such court may determine constitutes a reasonable
restriction under the circumstances.

 

12.           Other Contracts. Executive shall
not, during the Term, have any other paid employment except with the prior
approval of the Board.

 

13.           Indemnification.

 

(a)               Indemnification by the Company. The Company shall indemnify, hold
harmless and defend Executive to the fullest extent permitted under law from
and against any expenses (including but not limited to attorneys’ fees for one
counsel of Executive’s choosing, separate from any counsel of the Company,
expenses of investigation and preparation, and fees and disbursements of
Executive’s accountants or other experts), judgments, fines, penalties, and
amounts paid in settlement actually and reasonably incurred by Executive in
connection with any proceeding in which Executive was or is made party or was
or is involved (for example, as a witness) by reason of the fact that Executive
was or is employed by or acted for the Company other than any expenses incurred
as a result of Executive’s gross negligence or willful misconduct. The Company
shall advance to Executive all costs and expenses incurred in connection with
any proceeding covered by this provision within twenty (20) calendar days after
receipt by the Company of a written request for such advance subject to
Executive’s execution of an undertaking by Executive to repay the amount of
such advance if it shall ultimately be determined through final adjudication of
such matters in controversy that he is not entitled to be indemnified against
such costs and expenses.

 

14

 

(b)              Cooperation and Settlement. As a condition to indemnification
in any proceeding in which Executive seeks indemnification, Executive shall be
required to:  (i) keep the Company or its
designated counsel fully informed of the progress, relevant facts, issues and
events of such proceeding; (ii) cooperate with the Company and its counsel in
the defense of any such proceeding; (iii) provide full and truthful testimony
in and diligently pursue defense of such proceeding; and (iv) refrain from
settling such proceeding without the Company’s approval and unless such
settlement has a full and unconditional release of the Company and Executive.

 

14.           Amendments or Additions: Action by Board.
No amendments or additions to this Employment Agreement shall be binding unless
in writing and signed by all parties hereto. The prior approval by the Board
shall be required in order for the Company to authorize any amendments or
additions to this Employment Agreement, to give any consents or waivers of
provisions of this Employment Agreement, or to take any other action under this
Employment Agreement including any termination of employment with or without
Cause. Any action, consent, approval or determination of the Company under this
Employment Agreement shall be taken or effective only with the approval and
under the authority of the Board.

 

15.           Section Headings. The section
headings used in this Employment Agreement are included solely for convenience
and shall not affect, or be used in connection with, the interpretation of this
Employment Agreement.

 

16.           Enforceability. It is the desire
and intent of the parties that the provisions of this Employment Agreement
shall be enforced to the fullest extent permissible. In the event that any one
or more of the provisions of this Employment Agreement is held to be invalid,
illegal or unenforceable, the validity, legality and enforceability of the
remainder hereof will not in any way be affected or impaired thereby and any
such provision or provisions will be enforced to the fullest extent permitted
by law. Moreover, if any one or more of the provisions contained in this
Employment Agreement is held to be excessively broad as to duration, scope,
activity or subject, such provisions shall be construed by limiting and
reducing them so as to be enforceable to the maximum extent compatible with
applicable law.

 

17.           No Waiver. The failure of any of
the parties to insist, in one or more instances, upon strict performance of any
of the terms or conditions of this Employment Agreement shall not be construed
to constitute a waiver or relinquishment of any right granted under this
Employment Agreement or of the future performance of any such term, covenant,
or condition, and the obligations of the appropriate party with respect to any
such term or condition shall continue in full force and effect.

 

18.           Notices. All notices and other
communications hereunder shall be in writing and shall be given by hand
delivery to the Company (on behalf of the D&P Entities) or Executive, as 

 

15

 

the case may be, or by registered or
certified mail, return receipt requested, postage prepaid, addressed as
follows:

 

if to Executive:

 

Brett Marschke

1 Katonah Crossing

Katonah, NY 10536

 

if to D&P, LLC:

 

D&P, LLC

55 East 52nd Street

New York, NY 10055

Attention: Board of Directors 

Facsimile: (212) 450-2801

 

with copies to:

 

Duff & Phelps Corp.

55 East 52nd Street

New York, NY 10055

Attention: Board of Directors 

Facsimile: (212) 450-2801

 

and

 

Duff & Phelps Acquisitions, LLC

55 East 52nd Street

New York, NY 10055

Attention: Management Committee 

Facsimile: (212) 450-2801

 

and

 

Vestar Capital Partners IV, L.P. / Duff & Phelps, Inc. 

c/o Vestar Capital Partners

245 Park Avenue

41st Floor

New York, NY 10167

 

16

 

Attention: John R. Woodard and General Counsel 

Facsimile: (212) 808-4922

 

and

 

Lovell Minnick Financial Advisory Holdings LLC 

c/o Lovell Minnick Partners LLC

550 Deep Valley Drive

Suite 293

Rolling Hills Estates, CA 90274

Attention: General Counsel

Facsimile: (310) 265-1920

 

or to such other address as any party shall have furnished to the
others in writing in accordance herewith. All notices and communications shall
be effective when actually received by the addressee.

 

19.           Withholding. All amounts due and
payable under this Employment Agreement shall be less all amounts required or
authorized to be withheld by law, including all applicable federal, state and
local withholding taxes and deductions.

 

20.           Entire Agreement. This Employment
Agreement sets forth the entire agreement and understanding between Executive
and the D&P Entities and merges and supersedes any and all prior
agreements, representations, discussions, and understandings of every kind and
nature, written and oral, between Executive and the D&P Entities concerning
the subject matter hereof, including, but not limited to, the Prior Employment
Agreement. Executive represents that, in executing this Employment Agreement, he
has not relied upon any representation or statement made by the D&P
Entities other than those set forth herein, with regard to the subject matter,
basis or effect of this Employment Agreement or otherwise.

 

21.           Governing Law. This Employment
Agreement shall be subject to and construed in accordance with the laws of the
State of New York, without regard to its conflict of law rules.

 

22.           Each Party the Drafter. This
Employment Agreement, and the provisions contained in it, shall not be
construed or interpreted for, or against, any party to this Employment
Agreement because that party drafted or caused that party’s legal
representatives to draft any of its provisions.

 

23.           Counterparts. This Employment
Agreement may be executed in counterparts, which together shall constitute one
and the same original.

 

17

 

24.           Guarantee. D&P Acquisitions LLC
hereby guarantees all of the obligations of D&P, LLC hereunder.

 

[signature
page follows]

 

18

 

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

 

 

	
   

  	
   

  	
  DUFF &
  PHELPS, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Jacob
  Silverman

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President and

  
	
   

  	
   

  	
   

  	
   

  	
  Chief
  Financial Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Brett
  Marschke

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  For Purposes
  of Section 24 only

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  D&P
  ACQUISITIONS LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Jacob Silverman

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President and

  
	
   

  	
   

  	
   

  	
   

  	
  Chief
  Financial Officer

  

 

19Exhibit 10.11

 

EDWARD FORMAN

EMPLOYMENT AGREEMENT

 

This Employment Agreement (the “Employment
Agreement”), dated as of              ,
2007, by and between DUFF & PHELPS, LLC, a Delaware limited liability
company (“D&P, LLC”), and Edward Forman (“Executive”).

 

WHEREAS, in connection with an initial public
offering (the “IPO”) of Duff & Phelps Corporation, a Delaware
corporation (the “Company”), with respect to which D&P, LLC is an
indirect wholly-owned subsidiary, D&P, LLC will become the sole successor
employer to the Executive; and

 

WHEREAS, the D&P Entities (as defined
below) wish to replace the Prior Employment Agreement in its entirety as set
forth herein; and

 

WHEREAS, Executive acknowledges and agrees
that, by entering into this Employment Agreement, Executive does not have a
basis for asserting “Good Reason” under the Prior Employment Agreement; and

 

WHEREAS, the parties desire to enter into
this Employment Agreement to set forth the terms and conditions for the
employment and executive relationship of Executive with D&P, LLC, the
Company and its subsidiaries (collectively, the “D&P Entities”).

 

NOW, THEREFORE, based upon the foregoing
representations, and expressly intending to be legally bound, thereby and
hereby, the parties agree as follows:

 

1.             Employment. Executive shall serve
as the Executive Vice President, General Counsel and Secretary of the Company
and each of the D&P Entities and shall be an employee of D&P, LLC from
the date the registration statement filed in connection with the IPO becomes
effective (the “Effective Date”) through the end of the Term (as defined
below). As the Executive Vice President, General Counsel and Secretary of the
Company, Executive shall render executive, policy, and other management
services to the Company of the type customarily performed by persons serving in
similar capacities as Executive and consistent with the past practice of
Executive while serving as the Executive Vice President, General Counsel and
Secretary of Duff & Phelps Acquisitions, LLC, a Delaware limited liability
company (“D&P Acquisitions LLC”). During the Term, and excluding any
periods of vacation and sick leave to which Executive is entitled, Executive
agrees to devote substantially all of his business attention and time during
normal business hours to the business and affairs of the D&P Entities and
to use his reasonable best efforts to perform such responsibilities in a
commercially reasonable manner; provided, that Executive may (i) with
the consent of the Board, which consent shall not be 

 

1

 

unreasonably withheld, serve on civic or
charitable boards or committees, (ii) with the consent of the Board, which may
be withheld for any reason, serve on corporate boards or committees, and (iii)
manage his personal investments, so long as such activities under clauses (i),
(ii) and (iii) above do not interfere, with Executive’s responsibilities
hereunder. Executive shall also perform such duties as the board of directors
of the Company (the “Board”) may from time to time reasonably direct. Notwithstanding
the foregoing, Section 7(e) and 8(d) shall become effective as of the date of
this Employment Agreement.

 

2.             Salary. As compensation for
Executive’s services to the Company and other D&P Entities, the Executive
shall be entitled to receive during the Term a salary at the annual rate of $300,000,
which salary may, but need not be, increased from time to time as determined by
the Board (the “Annual Salary”). The Annual Salary shall be payable in
installments in accordance with the normal payroll practices of D&P, LLC. Except
as set forth in this Employment Agreement or as the Board may otherwise
provide, Executive shall not be entitled to receive any additional
compensation, whether in the form of equity or otherwise, for serving as an
officer or director of the D&P Entities.

 

3.             Additional Employment Compensation.

 

(a)           In addition to the Annual Salary, Executive shall be
entitled to receive annual bonus compensation (i) for the fiscal year ended
December 31, 2007, and for each fiscal year thereafter during the Term, in an
amount determined under Section 3(b) below and in the form described in 3(c)
below (for each respective year, the “Annual Bonus”). The cash portion
of the Annual Bonus, if any, shall be payable to Executive on or before March
15 of the year following the fiscal year to which such Annual Bonus relates; provided
that, subject to Section 8 of this Employment Agreement, the Executive is
employed by D&P, LLC as of the last day of the fiscal year to which such
Annual Bonus relates.

 

(b)           The amount of the Annual Bonus for the fiscal year
ended December 31, 2007 and each fiscal year thereafter during the Term shall
be calculated by multiplying the Target Bonus Amount by a fraction (i) the
numerator of which shall be Company EBITDA less Minimum Company EBITDA (which
shall not result in a number less than zero), and (ii) the denominator of which
shall be Target Company EBITDA less Minimum Company EBITDA. By way of example,
if Company EBITDA is equal to Target Company EBITDA then the Annual Bonus shall
be the Target Bonus Amount. Terms used and not defined in this Section 3(b)
shall have the meanings ascribed thereto on Exhibit A.

 

(c)           The form in which the Annual Bonus shall be payable is
as follows: (i) 70% (or such lower percentage as may be elected in accordance
with the procedures set forth below) in cash and (ii) an award of a number of
restricted Class A shares of the Company determined by dividing (a) the
remaining amount 

 

2

 

of
the Annual Bonus by (b) the per share closing price of the Company’s Class A
shares as of the date of such award, rounded down to the nearest whole share,
(the “Class A Award”) which Class A Award shall, subject to Section 8 of this
Employment Agreement, become non-forfeitable as to 1/3 of such award on each of
the first three anniversaries of the date of such award, provided that the
Executive’s employment has not been terminated for Cause, by Executive without
Good Reason, or due to Executive’s death or Disability prior to such
anniversary date. On any date that is no later than June 30 of each fiscal year
to which such Annual Bonus relates, the Executive may make an irrevocable
election (an “Election”) that the percentage of such Annual Bonus that
shall be provided in cash be reduced by up to an additional 15% of such Annual
Bonus and that the percentage of such Annual Bonus that is to be provided in
the form of an award of a number of restricted Class A shares of the Company be
increased by an equal percentage (the “Additional Class A Award”). In
the event that the Executive makes an Election that a percentage of such Annual
Bonus in excess of 30%, but no more than 45%, be provided in the form of an
award of restricted Class A shares of the Company, the Executive shall be
awarded an additional number of Class A shares of the Company equal to the
number of shares issuable with respect to that portion of the award that
exceeds 30% of the Annual Bonus (the “Matching Award”). The Additional
Class A Award and the Matching Award shall, subject to Section 8 of this
Employment Agreement, become non-forfeitable as to 1/3 of such awards on each
of the first three anniversaries of the date of such awards for so long as the
Executive remains employed by the Company through the respective anniversary
date.

 

4.             Participation in Employee Benefit Plans and Fringe
Benefits. Executive shall be eligible to participate in any plan
of the D&P Entities, if any, relating to options, equity purchases, pension,
thrift, profit sharing, employee equity ownership, group life insurance,
medical coverage, disability insurance, education, and/or other retirement or
employee benefits, that are available for the benefit of senior executive
officers of the D&P Entities. Executive shall also be eligible to receive
any other fringe benefits provided to senior executive officers of the D&P
Entities during the Term. Participation in these plans and receipt of these
fringe benefits shall not reduce the compensation payable to Executive under
Sections 2 and 3 above. Without limiting the foregoing, (a) the Annual Bonus
shall be included as compensation for purposes of determining Executive’s
entitlement under any supplemental 401(k) plan maintained by the D&P
Entities, if any, and (b) D&P, LLC will recommend to D&P Corp. that
Executive should be eligible to receive a stock option grant in connection with
the IPO pursuant to an agreement in substantially the form attached hereto as Exhibit
B.

 

5.             Term. The initial term of this
Employment Agreement shall be for a period commencing on the Effective Date and
ending on December 31, 2010. The initial term and any automatic renewal as
provided below in this Section, subject to any earlier termination of
employment as provided for under Section 7, is referred to herein as the “Term.”  Unless the parties hereto enter into a new
employment agreement or either party provides thirty (30) days advance notice
of its desire to not to renew this Employment Agreement before the expiration
of 

 

3

 

the Term (or any continuous subsequent one
year renewal term), in the event that Executive’s employment continues after
the expiration of the Term, this Employment Agreement shall continue in effect from
year to year thereafter for successive one year renewal periods upon expiration
of the Term.

 

6.             Vacations. Executive shall be
entitled to five (5) weeks of paid vacation leave per year, in accordance with
the vacation policy as then in effect. The timing of paid vacations shall be
scheduled by Executive, considering the reasonable needs of the D&P
Entities.

 

7.             Termination of Employment.

 

(a)           Death or Disability. The Term and Executive’s
employment shall terminate automatically upon Executive’s death. If the Board
determines in good faith that Executive is Disabled at any time during the Term
and gives Executive written notice of such determination, Executive’s
employment shall terminate effective on the 30th day after receipt of such
notice by Executive (the “Disability Effective Date”); provided
that such termination shall not be effective if, within thirty (30) days after
receipt of such notice, Executive has returned to full-time satisfactory
performance of Executive’s duties; provided, further, that, if
such termination is effective, Executive shall be entitled to receive medical
benefits consistent with the Company’s policies from time to time for a period
of two (2) years from the Disability Effective Date. “Disability” or “Disabled”
shall mean, Executive (i) is unable to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment
which can be expected to result in death or can be expected to last for a
continuous period of not less than 12 months; (ii) is, by reason of any
medically determinable physical or mental impairment which can be expected to
result in death or can be expected to last for a continuous period of not less
than 12 months, receiving income replacement benefits for a period of not less
than three months under an accident and health plan covering employees of the
Company; (iii) when used in connection with the exercise of an Incentive Stock
Option following termination of employment, has a disability within the meaning
of Section 22(e)(3) of the Internal Revenue Code of 1986, as amended (the “Code”);
or (iv) solely to the extent necessary to satisfy Section 409A of the Code, has
a “disability” or is “disabled” within the meaning of Section 409A of the Code.

 

(b)           Cause. The Term and Executive’s
employment may be terminated by D&P, LLC for Cause or without Cause. “Cause”
shall mean:  (i) Executive’s commission
of a willful act of fraud, embezzlement or misappropriation of any money or
properties of the D&P Entities (other than an insubstantial and
unintentional misappropriation that has been remedied within ten (10) days
after Executive’s receipt of notice of such misappropriation); (ii) Executive’s
indictment relating to any violation of any federal or state securities law or
fraud; (iii) Executive’s indictment for any felony or crime that causes a
material adverse effect to any of the D&P Entities; (iv) to the extent not
covered by (i) to (iii) above, Executive’s conviction of, or plea of no contest
to, any misdemeanor involving moral turpitude or any felony; (v) Executive’s
being enjoined from violating any federal or state securities law or being
determined to have violated any such law which impairs or prohibits Executive
from performing services or duties under this Employment Agreement; (vi)
Executive engaging in willful or reckless misconduct in 

 

4

 

connection
with any activity, the purpose or effect of which materially and adversely
affects any of the D&P Entities; (vii) Executive becoming barred or
prohibited by the Securities and Exchange Commission from holding Executive’s
position with any of the D&P Entities; and (viii) Executive’s material
breach of any of his obligations under Section 10 of this Employment Agreement.

 

(c)           Retirement. The Term and Executive’s
employment may be terminated by Executive subject to compliance with the notice
provisions set forth in 7(f) below, on or after reaching Retirement Age. “Retirement
Age” shall mean that (i) Executive is 65 years old, or (ii) is 55 years old
and has 15 years of service with the Company.

 

(d)           Good Reason. The Term and Executive’s
employment may be terminated by Executive for any reason, including Good
Reason, subject to compliance with the notice provisions set forth in 7(f) below.
“Good Reason” shall mean any action not consented to by Executive in writing
(which action shall not have been cured within thirty (30) days following
written notice from Executive to the Company specifying that such action will
give rise to a termination of Executive’s employment for Good Reason) having
the following effect or effects:  (i) a
breach of any of material obligations to Executive under this Employment
Agreement or any other material agreement to which Executive and any of the D&P
Entities is a party; (ii) requiring Executive to relocate to a facility or
location more than fifty (50) miles from the location at which he was primarily
located immediately prior to such requirement; (iii) any material reduction in
Executive’s duties or authority as compared to such duties or authority as of
the Effective Date, any adverse alteration in Executive’s reporting
relationship as compared to such reporting relationship as of the Effective
Date or any other material adverse alteration to the terms of Executive’s
employment; or (iv) any reduction in Executive’s base salary.

 

(e)           A “Change in Control” shall
be deemed to have occurred if the event set forth in any one of the following
paragraphs shall have occurred:

 

(i)            any Person is or becomes the
Beneficial Owner, directly or indirectly, of securities of the Company (not
including in the securities beneficially owned by such Person any securities
acquired directly from the Company or its Affiliates) representing 50% or more
of the combined voting power of the Company’s then outstanding securities,
excluding any Person who becomes such a Beneficial Owner in connection with a
transaction described in clause (a) of paragraph (iii) below; or

 

(ii)           the following individuals cease for
any reason to constitute a majority of the number of directors then serving:
individuals who, on the date hereof, constitute the Board and any new director
(other than a director whose initial assumption of office is in connection with
an actual or threatened election contest, including but not limited to a
consent solicitation, relating to the election of directors of the Company)
whose appointment or election by the Board or nomination for election by the
Company’s stockholders was approved or recommended by a vote of at 

 

5

 

least
two-thirds (2/3) of the directors then still in office who either were
directors on the date hereof or whose appointment, election or nomination for
election was previously so approved or recommended; or;

 

(iii)          there is consummated a merger or
consolidation of the Company or any direct or indirect subsidiary of the
Company with any other corporation or other entity, other than (a) a merger or
consolidation which results in the voting securities of the Company outstanding
immediately prior to such merger or consolidation continuing to represent
(either by remaining outstanding or by being converted into voting securities
of the surviving entity or any parent thereof), in combination with the
ownership of any trustee or other fiduciary holding securities under an
employee benefit plan of the Company or any subsidiary of the Company, at least
50% of the combined voting power of the securities of the Company or such
surviving entity or any parent thereof outstanding immediately after such
merger or consolidation or (b) a merger or consolidation effected to implement
a recapitalization of the Company (or similar transaction) in which no Person
is or becomes the Beneficial Owner, directly or indirectly, of securities of
the Company (not including in the securities Beneficially Owned by such Person
any securities acquired directly from the Company or its Affiliates)
representing 50% or more of the combined voting power of the Company’s then
outstanding securities; or

 

(iv)          the stockholders of the Company
approve a plan of complete liquidation or dissolution of the Company or there
is consummated an agreement for the sale or disposition by the Company of all
or substantially all of the Company’s assets, other than a sale or disposition
by the Company of all or substantially all of the Company’s assets to an
entity, at least 50% of the combined voting power of the voting securities of
which are owned by stockholders of the Company in substantially the same
proportions as their ownership of the Company immediately prior to such sale.

 

Notwithstanding the foregoing, a “Change in
Control” shall not be deemed to have occurred by virtue of the consummation of
any transaction or series of integrated transactions immediately following
which the record holders of the common stock of the Company immediately prior
to such transaction or series of transactions continue to have substantially
the same proportionate ownership in an entity that owns all or substantially
all of the assets of the Company immediately following such transaction or
series of transactions.

 

(f)            Notice of Termination. Any termination of Executive’s
employment with or without Cause, or by Executive for Good Reason, without Good
Reason or for retirement, shall be communicated by the terminating party
through a Notice of Termination; provided that, in the event that the Executive
terminates employment for Good Reason, such Notice of 

 

6

 

Termination
be delivered by the Executive within ninety (90) days of the initial existence
of the condition providing the basis for such Good Reason. For purposes of this
Employment Agreement, a “Notice of Termination” means a written notice
that:  (i) indicates the specific
termination provision in this Employment Agreement relied upon; (ii) sets forth
in reasonable detail the facts and circumstances claimed to provide a basis for
termination of Executive’s employment under the provision so indicated; and
(iii) specifies the Date of Termination. The failure to set forth in the Notice
of Termination any fact or circumstance which contributes to a showing of Good
Reason or Cause, as the case may be, shall not waive any right of the parties
hereunder or preclude any party, respectively, from asserting such fact or
circumstance in enforcing any rights hereunder.

 

(g)           Date of Termination. “Date of Termination” means
(i) if Executive’s employment is terminated for Cause or by Executive for Good
Reason, the date that is one day after the last day of the applicable cure or
notice period, (ii) if Executive’s employment is terminated other than for
Cause, death or Disability, or if Executive resigns other than for Good Reason,
the Date of Termination shall be the date on which the terminating party notifies
Executive or the Company, as the case may be, of such termination and (iii) if
Executive’s employment is terminated by reason of death or Disability, the Date
of Termination shall be the date of death of Executive or the Disability
Effective Date, as the case may be.

 

8.             Obligations of the D&P Entities Upon
Termination.

 

(a)           Termination without Cause or by Executive with Good
Reason. If
Executive’s employment is terminated without Cause (other than termination by
reason of Executive’s death or Disability), or Executive terminates employment
for Good Reason, and Executive executes a general release in the form attached
hereto as Exhibit C, Executive shall be paid or provided, (i) within
thirty (30) days after the applicable Date of Termination, a cash lump sum
payment equal to the sum of: (a) any accrued but unpaid salary as payable
through such Date of Termination; (b) Executive’s Annual Salary as of the Date
of Termination; and (c) the most recent Annual Bonus earned by the Executive
pursuant to this Employment Agreement or, if higher, the Target Bonus Amount as
of the Date of Termination, (ii) a prorated portion of Executive’s Annual Bonus
through the Date of Termination, payable when and if it otherwise would have
been payable, (iii) full and immediate vesting of any equity or equity-based
awards (including stock options) then held by Executive,  (iv) should Executive elect continuation of
the medical and dental benefits under COBRA, payment of Executive’s costs for
such coverage for a period of up to one year following the applicable Date of
Termination; and (v) any other amounts or benefits required to be paid or
provided, or which Executive is entitled to receive, as of the applicable Date
of Termination, as provided for under any plan, program, policy, contract or
agreement of the D&P Entities, including any severance plan or policy which
is then applicable to Executive; provided, however, that if Executive is
employed by an employer that is not a D&P Entity during the period provided
for under Subsection (iv) above and is eligible to receive medical or dental
benefits under such employer’s plans or is 

 

7

 

otherwise
eligible to receive benefits under any governmental plan, then Executive shall
no longer be entitled to such payments.

 

(b)           Termination for Cause, by Executive without Good
Reason or due to Executive’s death or Disability. If Executive’s employment is
terminated for Cause, Disability or death, or Executive terminates employment
other than for Good Reason, then the D&P Entities shall have no further
obligation, to provide any remuneration, accruals, or other benefits to
Executive, other than the obligation of D&P, LLC to pay to Executive, to
the extent not theretofore paid or provided, in a cash lump sum payment within
thirty (30) days after such Date of Termination equal to the Annual Salary
through the applicable Date of Termination, or as required by law, provided
that if Executive’s employment is terminated for Disability or death, (i) Executive
shall receive a pro rata share of any Annual Bonus to which Executive may be
entitled until the related Date of Termination, (ii) Executive shall receive
any unvested portion of any Class A Award or any Additional Class A Award (but
not any Matching Award), and (iii) any unvested equity awarded to Executive prior
to the date of this Employment Agreement shall become vested.

 

(c)           Retirement. If Executive retires after reaching Retirement Age,
then the D&P Entities shall have no further obligation, to provide any
remuneration, accruals, or other benefits to Executive, other than (i) the
obligation of D&P, LLC to pay to Executive, to the extent not theretofore
paid or provided, in a cash lump sum payment within thirty (30) days after such
Date of Termination equal to the Annual Salary through the Date of Termination,
or as required by law, and (ii) provided that Executive executes a general
release in the form attached hereto as Exhibit C, any unvested equity
awarded to Executive under this Employment Agreement shall become vested.

 

(d)           Termination and Change In Control.  The
Executive shall be entitled to receive the payments described in this Section 8(c)
upon the termination of the Executive’s employment within eighteen (18) months
following a Change in Control provided, that Executive executes a
general release in the form attached hereto as Exhibit C, unless such
termination is (i) for Cause, (ii) by reason of death or Disability, or (iii)
by the Executive without Good Reason. In lieu of any further salary payments to
the Executive for periods subsequent to the Date of Termination and in lieu of
any severance benefit otherwise payable to the Executive, Executive shall be
entitled to receive, (i) within thirty (30) days after the applicable Date of
Termination, a cash lump sum payment equal to the sum of (A) any accrued but
unpaid salary as payable through such Date of Termination, and (B) two times
the sum of (1) Executive’s Annual Salary as of the Date of Termination, and (2)
the most recent Annual Bonus earned by the Executive pursuant to this
Employment Agreement or, if higher, the Target Bonus Amount as of the Date of
Termination, (ii) a prorated portion of Executive’s Annual Bonus through the
Date of 

 

8

 

Termination,
payable when and if it otherwise would have been payable, (iii) full and
immediate vesting of any equity or equity-based awards (including stock
options) then held by Executive,  (iv)
should Executive elect continuation of the medical and dental benefits under
COBRA, payment of Executive’s costs for such coverage for a period of up to one
year following the applicable Date of Termination; and (v) any other amounts or
benefits required to be paid or provided, or which Executive is entitled to receive,
as of the applicable Date of Termination, as provided for under any plan,
program, policy, contract or agreement of the D&P Entities, including any
severance plan or policy which is then applicable to Executive; provided,
however, that if Executive is employed by an employer that is not a D&P
Entity during the period provided for under Subsection (iv) above and is
eligible to receive medical or dental benefits under such employer’s plans or
is otherwise eligible to receive benefits under any governmental plan, then
Executive shall no longer be entitled to such payments. For purposes of this
Employment Agreement, the Executive’s employment shall be deemed to have been
terminated without Cause following a Change in Control or by the Executive with
Good Reason following a Change in Control if (x) the Executive’s employment is
terminated without Cause prior to a Change in Control (whether or not a Change
in Control ever occurs) and such termination was at the request or direction of
a Person who has entered into an agreement with the Company the consummation of
which would constitute a Change in Control (y) the Executive’s employment is
terminated without Cause in the ninety (90) period prior to or in anticipation
of a Change in Control (whether or not a Change in Control ever occurs) or (z)
if the Executive terminates his employment for Good Reason prior to a Change in
Control (whether or not a Change in Control ever occurs) and the circumstance
or event which constitutes Good Reason occurs at the request or direction of
such Person.

 

(e)           Adjustments to Payments. If it is reasonably determined
that any payment or distribution by the D&P Entities to or for the benefit
of Executive, whether paid or payable or distributed or distributable pursuant
to the terms of this Employment Agreement or otherwise pursuant to or by reason
of any other agreement, policy, plan, program or arrangement, including without
limitation any stock option, stock appreciation right or similar right, or the
lapse or termination of any restriction on or the vesting or exercisability of
any of the foregoing (the “Payments”) is subject to the excise tax
imposed by Section 4999 of the Code, (the “Excise Tax”), Executive shall
be entitled to an additional amount (the “Gross Up Payment”) such that
the net amount retained by the Executive, after deduction of any Excise Tax on
the Payments and any federal, state and local income and employment taxes and
Excise Tax upon the Gross-Up Payment, and after taking into account the phase
out of itemized deductions and personal exemptions attributable to the Gross-Up
Payment, shall be equal to the Payments.

 

(f)            For purposes of determining whether any of the
Payments will be subject to the Excise Tax and the amount of such Excise Tax,
(i) all of the 

 

9

 

Payments
shall be treated as “parachute payments” (within the meaning of section
280G(b)(2) of the Code) unless, in the opinion of tax counsel (“Tax Counsel”)
reasonably acceptable to the Executive and selected by the accounting firm
which was, immediately prior to the Change in Control, the Company’s
independent auditor (the “Auditor”), such payments or benefits (in whole
or in part) do not constitute parachute payments, including by reason of
section 280G(b)(4)(A) of the Code, (ii) all “excess parachute payments” within
the meaning of section 280G(b)(l) of the Code shall be treated as subject to
the Excise Tax unless, in the opinion of Tax Counsel, such excess parachute
payments (in whole or in part) represent reasonable compensation for services
actually rendered (within the meaning of section 280G(b)(4)(B) of the Code) in
excess of the base amount (as defined in section 280G(b)(3) of the Code) (the “Base
Amount”) allocable to such reasonable compensation, or are otherwise not
subject to the Excise Tax, and (iii) the value of any noncash benefits or any
deferred payment or benefit shall be determined by the Auditor in accordance
with the principles of sections 280G(d)(3) and (4) of the Code and applicable
guidance under Treasury Regulation § 1.280G-1, and U.S. Treasury Department
rulings and releases. For purposes of determining the amount of the Gross Up
Payment, the Executive shall be deemed to pay federal income tax at the highest
marginal rate of federal income taxation in the calendar year in which the
Gross Up Payment is to be made and state and local income taxes at the highest
marginal rate of taxation in the state and locality of the Executive’s
residence on the Date of Termination, net of the maximum reduction in federal
income taxes which could be obtained from deduction of such state and local
taxes.

 

(g)           In the event that the Excise Tax is finally determined
to be less than the amount taken into account hereunder in calculating the
Gross-Up Payment, the Executive shall repay, within five (5) business days
following the time that the amount of such reduction in the Excise Tax is
finally determined, the portion of the Gross Up Payment attributable to such
reduction (plus that portion of the Gross Up Payment attributable to the Excise
Tax and federal, state and local income and employment taxes imposed on the
Gross Up Payment being repaid by the Executive), to the extent that such
repayment results in a reduction in the Excise Tax and a dollar-for-dollar reduction
in the Executive’s taxable income and wages for purposes of federal, state and
local income and employment taxes, plus interest on the amount of such
repayment at 120% of the rate provided in section 1274(b)(2)(B) of the Code. In
the event that the Excise Tax is determined to exceed the amount taken into
account hereunder in calculating the Gross-Up Payment (including by reason of
any payment the existence or amount of which cannot be determined at the time
of the Gross Up Payment), the Executive shall be entitled to an additional
Gross Up Payment in respect of such excess (plus any interest, penalties or
additions payable by the Executive with respect to such excess) within five (5)
business days following the time that the amount of such excess is finally
determined. The Executive and D&P, LLC shall each reasonably cooperate with
the other in connection with any administrative or judicial proceedings
concerning the existence or amount of liability for Excise Tax with respect to
the Total Payments.

 

10

 

(h)           409A Compliance. Notwithstanding the foregoing, if any amount to be
paid to Executive pursuant to this Section 8 is “deferred compensation” subject
to Section 409A of the Code and the rules and regulations thereunder (“Section
409A”), and if the Executive is a “Specified Employee” (as defined under
Section 409A) as of the date of Executive’s termination of employment
hereunder, then, to the extent necessary to avoid the imposition of excise
taxes or other penalties under Section 409A, the payment of benefits, if any,
scheduled to be paid by the D&P Entities to Executive hereunder during the
first six (6) month period following the date of a termination of employment
hereunder shall not be paid until the date which is the first business day
following the six-month anniversary of Executive’s termination of employment
for any reason other than death. Any termination of employment or services from
the D&P Entities which triggers a payment of “deferred compensation”
subject to Section 409A of the Code shall, if applicable, meet the requirements
of a “separation from service” under Section 409A of the Code. In addition, the
parties shall cooperate fully with one another to ensure compliance with
Section 409A of the Code, including, without limitation, adopting amendments to
arrangements subject to Section 409A and operating such arrangements in
compliance with Section 409A; provided, however, nothing in this
subsection (g) shall require Executive to reduce his compensation.

 

(i)            409A Excise Tax. Subject to Executive’s compliance with Section 8(g)
above, if any portion of the Executive’s compensation less regular federal,
state and local income and employment taxes (“Compensation”) becomes
subject to the excise tax or interest penalties under Section 409A(a)(1)(B) of
the Code (“409A Excise Tax”), Executive shall be entitled to an
additional amount (the “409A Gross Up Payment”) such that the net amount
retained by the Executive, after deduction of any 409A Excise Tax on the
Compensation and any federal, state and local income and employment taxes and
the 409A Excise Tax upon the 409A Gross-Up Payment, and after taking into
account the phase out of itemized deductions and personal exemptions
attributable to the 409A Gross-Up Payment, shall be equal to the Compensation. This
subsection (h) shall be of no effect if the Company provides Executive with a
minimum of thirty (30) days advance notice of a potential Section 409A of the
Code violation and proposes a reasonable correction to Executive at such time,
and Executive refuses to respond or exercise good faith in agreeing to required
changes. Notwithstanding the foregoing, nothing in this subsection (h) shall
require Executive to reduce his compensation.

 

9.             No Assignments; Successors. This
Employment Agreement is personal to each of the parties hereto. Neither party
may assign or delegate any rights or obligations hereunder without first
obtaining the written consent of the other, provided that, in the event
of the death of Executive, all rights to receive payments hereunder shall
become rights of Executive’s estate, and provided  further that D&P,
LLC may assign its rights and obligations hereunder in connection with any sale
of the Company, and shall require any successor (whether direct or indirect, by
purchase, merger, consolidation or otherwise) to all or substantially all of
the 

 

11

 

business and/or assets of the Company to
expressly to assume and agree to perform this Employment Agreement in the same
manner and to the same extent that D&P, LLC would have been required to
perform if no succession had taken place. Notwithstanding anything in this
Employment Agreement to the contrary, each of the D&P Entities shall have
the right to enforce the provisions of Section 10 below.

 

10.           Confidential Information; Noncompetition;
Nonsolicitation.

 

(a)           Executive acknowledges that Executive has and will
have knowledge of certain trade secrets of the D&P Entities, including
information concerning the D&P Entities’ businesses, operations, future
plans, methodologies, and customers. Executive shall hold in a fiduciary
capacity for the benefit of the D&P Entities all secret or confidential
information, knowledge or data relating to the D&P Entities and their
respective businesses, which shall have been obtained by Executive during
Executive’s employment and which shall not be or become public knowledge (other
than by acts by Executive or representatives of Executive in violation of this
Employment Agreement). After termination of Executive’s employment, Executive
shall not, without prior written consent or as may otherwise be required by law
or legal process (provided adequate notice of and opportunity to challenge or
limit the scope of disclosure purportedly so required has been provided by
Executive), allow others to use to their personal advantage, communicate or
divulge any such information, knowledge or data to anyone other than the
D&P Entities and those designated by it or to an attorney retained by
Executive to provide legal advice with respect to this Section 10 and who has
agreed to keep such information confidential.

 

(b)           While employed under this Employment Agreement,
Executive shall comply with the rules and policies of the D&P Entities,
including without limitation the D&P Entities’ code of conduct and
conditions of employment and compliance policies.

 

(c)           Executive agrees promptly to disclose, in writing, all
Innovations (as defined below) to the D&P Entities, to provide all assistance
requested by the D&P Entities, at the D&P Entities’ expense, in the
preservation of the D&P Entities’ interests in any Innovations, and hereby
assigns and agrees to assign to the D&P Entities all rights, title and
interest in and to all worldwide patents, patent applications, copyrights,
trade secrets and other intellectual property or “Moral Rights” in any
Innovation. Furthermore, during the Term, the D&P Entities may use
Executive’s name and image as appropriate in the conduct of its business. “Innovations”
means all developments, improvements, designs, original works, formulas,
processes, software programs, databases, and trade secrets, whether or not
patentable, copyrightable or otherwise protectable, that Executive, whether by
himself or jointly with others, creates, modifies, develops, derives or
implements during the Term, that in any way relates to the D&P Entities’
business.

 

12

 

(d)           Executive acknowledges and agrees that all personal
property, of any nature whatsoever, furnished to Executive by the D&P
Entities in the course of or incident to his employment, belong to the D&P
Entities and promptly shall be returned to the D&P Entities upon
termination of Executive’s employment for any reason.

 

(e)           Executive acknowledges that if Executive were to
become employed by a competing organization, Executive’s new job duties and the
products, services and technology of the competing organization would be so
similar or related to those contemplated by this Employment Agreement that it
would be very difficult for Executive not to rely on or use the D&P
Entities’ trade secrets. Executive further acknowledges that Executive, and any
competing organization, cannot avoid using the trade secret information, due to
the fact that even in the best good faith, Executive cannot as a practical
matter avoid using the knowledge of the D&P Entities’ confidential methods
and trade secrets in Executive’s work with a competing organization. Accordingly,
Executive has not and will not, (i) while employed by the D&P Entities and
(ii) in the event that Executive’s employment is terminated for any reason, for
a period of one year after the Date of Termination (without the written consent
of the Company): directly or indirectly, own, manage, operate, control or
participate in the ownership, management, operation or control of, or be
connected as an officer, employee, partner, director or otherwise with, or have
any financial interest in, any business that engages in any business within a
50-mile radius of any metropolitan area in which the D&P Entities conducted
significant business during the 12-month period immediately preceding the Date
of Termination (1) that competes with any business actively conducted in such
area, at the time such engagement is commenced, by the D&P Entities and (2)
that is of the type of business activity in which Executive was engaged on
behalf of the D&P Entities during such 12-month period; provided
that ownership, for personal investment purposes only, of less than 5% of the
voting stock of any publicly held corporation shall not constitute a violation
hereof.

 

(f)            While employed under this Employment Agreement and for
two years after termination of employment for any reason, Executive shall not,
directly or indirectly, on behalf of Executive or any other person, solicit for
employment or hire (other than for the D&P Entities) any person known by
Executive to be employed by the D&P Entities at the time of such
solicitation or hiring or within the six (6) month period immediately preceding
thereto.

 

(g)           Notwithstanding any other provision in this Employment
Agreement, while employed under this Employment Agreement and for two years
after Executive’s termination of employment for any reason, Executive shall not,
directly or indirectly, on behalf of Executive or any other person, solicit any
Client to become a client and/or customer of Executive or of any person other
than the 

 

13

 

D&P
Entities. For purposes of this Section 10(g), a “Client” is a person,
firm or corporation that is, becomes or is known to be an actual or potential
client or customer of the D&P Entities as a result of a communication or
solicitation by the D&P Entities or agents acting on behalf of the D&P
Entities (whether prior to or after the date hereof).

 

(h)           The provisions of this Section 10 shall remain in full
force and effect until the expiration of the period specified herein
notwithstanding the earlier termination of Executive’s employment hereunder.

 

11.           Specific Performance. Executive
acknowledges that a violation on Executive’s part of any of the covenants
contained in Section 10 hereof would cause immeasurable and irreparable damage
to the D&P Entities. Accordingly, Executive agrees that the D&P
Entities shall be entitled to injunctive relief in any court of competent
jurisdiction for any actual or threatened violation of any such covenant in
addition to any other remedies it may have. Executive agrees that in the event
that any court of competent jurisdiction shall finally hold that any provision
of Section 10 is void or constitutes an unreasonable restriction against
Executive, the provisions of such Section 10 shall not be rendered void but
shall apply to such extent as such court may determine constitutes a reasonable
restriction under the circumstances.

 

12.           Other Contracts. Executive shall
not, during the Term, have any other paid employment except with the prior
approval of the Board.

 

13.           Indemnification.

 

(a)           Indemnification by the Company. The Company shall indemnify, hold
harmless and defend Executive to the fullest extent permitted under law from
and against any expenses (including but not limited to attorneys’ fees for one
counsel of Executive’s choosing, separate from any counsel of the Company,
expenses of investigation and preparation, and fees and disbursements of
Executive’s accountants or other experts), judgments, fines, penalties, and
amounts paid in settlement actually and reasonably incurred by Executive in
connection with any proceeding in which Executive was or is made party or was
or is involved (for example, as a witness) by reason of the fact that Executive
was or is employed by or acted for the Company other than any expenses incurred
as a result of Executive’s gross negligence or willful misconduct. The Company
shall advance to Executive all costs and expenses incurred in connection with
any proceeding covered by this provision within twenty (20) calendar days after
receipt by the Company of a written request for such advance subject to
Executive’s execution of an undertaking by Executive to repay the amount of
such advance if it shall ultimately be determined through final adjudication of
such matters in controversy that he is not entitled to be indemnified against
such costs and expenses.

 

14

 

(b)           Cooperation and Settlement. As a condition to indemnification
in any proceeding in which Executive seeks indemnification, Executive shall be
required to:  (i) keep the Company or its
designated counsel fully informed of the progress, relevant facts, issues and
events of such proceeding; (ii) cooperate with the Company and its counsel in
the defense of any such proceeding; (iii) provide full and truthful testimony
in and diligently pursue defense of such proceeding; and (iv) refrain from
settling such proceeding without the Company’s approval and unless such
settlement has a full and unconditional release of the Company and Executive.

 

14.           Amendments or Additions: Action by Board.
No amendments or additions to this Employment Agreement shall be binding unless
in writing and signed by all parties hereto. The prior approval by the Board
shall be required in order for the Company to authorize any amendments or
additions to this Employment Agreement, to give any consents or waivers of
provisions of this Employment Agreement, or to take any other action under this
Employment Agreement including any termination of employment with or without
Cause. Any action, consent, approval or determination of the Company under this
Employment Agreement shall be taken or effective only with the approval and
under the authority of the Board.

 

15.           Section Headings. The section
headings used in this Employment Agreement are included solely for convenience
and shall not affect, or be used in connection with, the interpretation of this
Employment Agreement.

 

16.           Enforceability. It is the desire
and intent of the parties that the provisions of this Employment Agreement
shall be enforced to the fullest extent permissible. In the event that any one
or more of the provisions of this Employment Agreement is held to be invalid,
illegal or unenforceable, the validity, legality and enforceability of the
remainder hereof will not in any way be affected or impaired thereby and any
such provision or provisions will be enforced to the fullest extent permitted
by law. Moreover, if any one or more of the provisions contained in this
Employment Agreement is held to be excessively broad as to duration, scope,
activity or subject, such provisions shall be construed by limiting and
reducing them so as to be enforceable to the maximum extent compatible with
applicable law.

 

17.           No Waiver. The failure of any of
the parties to insist, in one or more instances, upon strict performance of any
of the terms or conditions of this Employment Agreement shall not be construed
to constitute a waiver or relinquishment of any right granted under this
Employment Agreement or of the future performance of any such term, covenant,
or condition, and the obligations of the appropriate party with respect to any
such term or condition shall continue in full force and effect.

 

18.           Notices. All notices and other
communications hereunder shall be in writing and shall be given by hand
delivery to the Company (on behalf of the D&P Entities) or Executive, as 

 

15

 

the case may be, or by registered or
certified mail, return receipt requested, postage prepaid, addressed as
follows:

 

if to Executive:

 

Edward Forman

1126 East Laurelton Pkwy

Teaneck, NJ 07666

 

if to D&P, LLC:

 

D&P, LLC

55 East 52nd Street

New York, NY 10055

Attention: Board of Directors 

Facsimile: (212) 450-2801

 

with copies to:

 

Duff & Phelps Corp.

55 East 52nd Street

New York, NY 10055

Attention: Board of Directors 

Facsimile: (212) 450-2801

 

and

 

Duff & Phelps Acquisitions, LLC

55 East 52nd Street

New York, NY 10055

Attention: Management Committee 

Facsimile: (212) 450-2801

 

and

 

Vestar Capital Partners IV, L.P. / Duff & Phelps, Inc. 

c/o Vestar Capital Partners

245 Park Avenue

41st Floor

New York, NY 10167

 

16

 

Attention: John R. Woodard and General Counsel 

Facsimile: (212) 808-4922

 

and

 

Lovell Minnick Financial Advisory Holdings LLC 

c/o Lovell Minnick Partners LLC

550 Deep Valley Drive

Suite 293

Rolling Hills Estates, CA 90274

Attention: General Counsel

Facsimile: (310) 265-1920

 

or to such other address as any party shall have furnished to the
others in writing in accordance herewith. All notices and communications shall
be effective when actually received by the addressee.

 

19.           Withholding. All amounts due and
payable under this Employment Agreement shall be less all amounts required or
authorized to be withheld by law, including all applicable federal, state and
local withholding taxes and deductions.

 

20.           Entire Agreement. This Employment
Agreement sets forth the entire agreement and understanding between Executive
and the D&P Entities and merges and supersedes any and all prior
agreements, representations, discussions, and understandings of every kind and
nature, written and oral, between Executive and the D&P Entities concerning
the subject matter hereof. Executive represents that, in executing this
Employment Agreement, he has not relied upon any representation or statement
made by the D&P Entities other than those set forth herein, with regard to
the subject matter, basis or effect of this Employment Agreement or otherwise.

 

21.           Governing Law. This Employment
Agreement shall be subject to and construed in accordance with the laws of the
State of New York, without regard to its conflict of law rules.

 

22.           Each Party the Drafter. This
Employment Agreement, and the provisions contained in it, shall not be
construed or interpreted for, or against, any party to this Employment
Agreement because that party drafted or caused that party’s legal
representatives to draft any of its provisions.

 

23.           Counterparts. This Employment
Agreement may be executed in counterparts, which together shall constitute one
and the same original.

 

24.           Guarantee. D&P Acquisitions LLC
hereby guarantees all of the obligations of D&P, LLC hereunder.

 

17

 

[signature
page follows]

 

18

 

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

 

 

	
   

  	
   

  	
  DUFF &
  PHELPS, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Jacob
  Silverman

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President and

  
	
   

  	
   

  	
   

  	
   

  	
  Chief
  Financial Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Edward
  Forman

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  For Purposes
  of Section 24 only

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  D&P
  ACQUISITIONS LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Jacob
  Silverman

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President and

  
	
   

  	
   

  	
   

  	
   

  	
  Chief
  Financial Officer

  

 

19

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