Document:

Exhibit 10.3

AMENDMENT NO. 2 TO CREDIT AGREEMENT

 

This Amendment No. 2 (this “Amendment”) to the
Credit Agreement, dated as of September 30, 2005 (as amended by Amendment No.
1, dated as of June 14, 2006), the “Credit Agreement”), and entered into
by and among Duff & Phelps, LLC (the “Borrower”), Duff & Phelps
Acquisitions, LLC, as one of the guarantors (“Holdings”), the persons
designated as “Lenders” on the signature pages hereto (the “Lenders”)
and General Electric Capital Corporation, in its capacity as Administrative
Agent (the “Administrative Agent”) for its own benefit and the benefit
of the Lenders, is dated as of October 31, 2006 and entered into by and among
Borrower, the other Loan
Parties signatory hereto, the Lenders signatory hereto and Administrative
Agent.

 

R  E  C  I  T
A  L  S:

 

WHEREAS, Borrower has advised Administrative Agent and
Lenders it intends to enter into that certain Unit Purchase Agreement, dated as
of October 10, 2006 (the “Purchase Agreement”), among Chanin Capital
Partners, LLC, a Delaware limited liability company (“Chanin”), the
sellers named therein, and Holdings, pursuant to which, among other things,
Holdings will acquire all of the limited liability company interests of Chanin,
for total cash consideration of approximately $15,000,000, subject to certain
adjustments and an additional contingent purchase price of up to $15,000,000 specified
therein  and for the issuance to the sellers of
certain equity interests in Holdings (the “Acquisition”); and

 

WHEREAS, upon the consummation of the Acquisition,
Chanin will become a Guarantor and a Loan Party in accordance with Section
7.10 of the Credit Agreement; and

 

WHEREAS, to finance the Acquisition, the Lenders have
agreed, subject to the terms and conditions of this Amendment and the Credit
Agreement, to extend an additional term loan in the amount of $15,000,000 to
the Borrower (the “Additional Term Loan”); and

 

WHEREAS, the Borrowers have requested that the Chanin
Acquisition (as defined below) shall be a Permitted Acquisition (provided that
the consideration paid therefor shall not be counted against the aggregate
consideration limit contained in clause (a) of the definition of “Permitted
Acquisition”), and Borrowers have requested that the Lenders consent to
Holdings entering into the Chanin Acquisition Documents (as defined below) and
consummating the Chanin Acquisition and that the Lenders whose signatures
appear below agree to amend the Credit Agreement and certain of the other Loan
Documents as set forth below; and

 

WHEREAS, the Lenders whose signatures appear below are
willing to agree to such requests and the Lenders whose signatures appear below
and Administrative Agent are willing to enter into such amendment upon the
terms and conditions provided herein.

 

NOW, THEREFORE, in consideration of the premises and
the agreements, provisions and covenants herein contained, and subject to the
terms and conditions hereof the Loan Parties, the Lenders whose signatures appear below and
Administrative Agent agree as follows:

 

 

Section 1.

 

DEFINITIONS

 

1.1           Defined Terms. Unless
otherwise provided all capitalized terms used herein shall have the meanings
ascribed thereto in the Credit Agreement.

 

1.2.          Additional
Defined Terms. The capitalized terms set forth in Section 2.2(a)
below shall have the meanings when used herein as set forth therein.

 

Section 2.

 

CONSENT
AND AMENDMENT

 

2.1           Consent.
Subject to the satisfaction of the conditions set forth in Section 3,
the Required Lenders hereby consent to Holdings entering into the Chanin
Acquisition Documents (including the amendment and restatement of the Holdings
limited liability company agreement) and consummating the Chanin Acquisition in
accordance with the terms of the Chanin Acquisition Documents.

 

2.2           Amendments.
Subject to the satisfaction of the conditions set forth in Section 3,
the Credit Agreement and certain of the other Loan Documents are amended as
follows:

 

(a)           The following terms are added to Section
1.1 of the Credit Agreement in their appropriate alphabetical places:

 

“Additional Term Loan” has the meaning ascribed
to it in Section 2.1(b).

 

“Additional Term Loan Facility” means the
Additional Term Loan Commitments and the provisions herein related to the
Additional Term Loans.

 

“Additional Term Loan Lender” means any Lender
with an Additional Term Loan Commitment.

 

“Additional Term
Loan Commitment” means (a) as to any Additional Term Loan Lender, the
commitment of such Lender to make its Pro Rata Share of the Additional Term
Loan (in the amount determined by the Administrative Agent in its sole
discretion and notified to such Additional Term Loan Lender, and in any event
not to exceed the amount set forth as its maximum Additional Term Loan
Commitment below the signature of such Additional Term Loan Lender on its
signature page to Amendment No. 2) in the maximum aggregate amount set forth in
Section 2.1(b) or in the most recent Assignment Agreement, if any, executed by
such Lender and (b) as to all Additional Term Loan Lenders, the aggregate
commitment of all Additional Term Loan Lenders to make the Additional Term Loan.
As of the Amendment No. 2 Effective Date, the Additional Term Loan Commitment
is $15,000,000.

 

“Amendment No. 2”
means Amendment No. 2, dated October 31, 2006 to this Agreement.

 

“Amendment No. 2 Effective Date” means October
31, 2006.

 

“Chanin” means Chanin Capital Partners, LLC, a
Delaware limited liability company.

 

“Chanin Acquisition” means the purchase by
Holdings of 100% of the limited liability

 

2

 

company interests of Chanin pursuant to and in
accordance with the terms of the Chanin Acquisition Documents.

 

“Chanin Acquisition Documents” means the Chanin
Purchase Agreement, together with all certificates and other documents entered
into, recorded or filed in connection therewith.

 

“Chanin Purchase Agreement” means that unit
purchase agreement, dated as of October 10, 2006, between Holdings, Chanin, the
unitholders signatory hereto as sellers and Jeffrey Chanin and Company, Inc. as
seller representative, as originally in effect or as amended, modified or
supplemented in accordance with its terms and the terms of this Agreement.

 

“Fee Letter” means, collectively, (i) the
letter agreement, dated as of August 23, 2005, from the Borrowers and addressed
to and accepted by General Electric Capital Corporation, with respect to
certain fees to be paid from time to time to General Electric Capital
Corporation and the Administrative Agent and its Related Persons and (ii) the
New Fee Letter.

 

“Initial Term Lender” means a Lender that made
or holds an Initial Term Loan.

 

“Initial Term Loans” means the $65,000,000 in
aggregate principal amount of term loans made hereunder on the Closing Date and
on March 31 , 2006.

 

“Initial Term Loan Balance” has the meaning
ascribed to it in Section 2.1(b).

 

“Initial Term Loan Commitment” means, with
respect to each Initial Term Loan Lender, the commitment of such Lender to make
Initial Term Loans to the Borrower, which commitment is in the amount set forth
opposite such Lender’s name on Schedule I under the caption “Term
Loan Commitment”, as amended to reflect Assignments and as such amount may
be reduced pursuant to this Agreement. The aggregate amount of the Initial Term
Loan Commitments on the Closing Date was $65,000,000.

 

“Initial Term Loan Facility” means the Initial
Term Loans and the provisions herein related to the Initial Term Loans.

 

“New Fee Letter” means the letter agreement,
dated as of October 10, 2006 from the Borrowers and addressed to and accepted
by General Electric Capital Corporation, with respect to certain fees to be
paid from time to time to General Electric Capital Corporation and the
Administrative Agent and its Related Persons.

 

“Purchase Agreements” collectively, means the
Acquisition Agreement and the Chanin Purchase Agreement.

 

(b)           The definition of “Consolidated
EBITDA” in Section 1.1 of the Credit Agreement is amended by (i) substituting
for the term “Acquisition” each place it appears therein, the phrase “Acquisition
and the Chanin Acquisition”, (ii) adding the following phrase after the end of clause
(b)(xiv) thereof “(xv) payments under section 1.5 of the Chanin Purchase
Agreement made in accordance with this Agreement”, and (iii) renumbering clause
(b)(xv) thereof as (b)(xvi).

 

(c)           The definition of “Consolidated Total
Debt” in Section 1.1 of the Credit Agreement is amended by adding
the following phrase at the end thereof: “;provided, further,
that obligations arising under section 1.5 of the Chanin Purchase Agreement are
not “Consolidated Total Debt” for purposes of this Agreement.

 

3

 

(d)           The definition of “Excess Cash
Flow” in Section 1.1 of the Credit Agreement is amended by (i)
substituting for the term “Acquisition” each place it appears therein, the
phrase “Acquisition and the Chanin Acquisition”, (ii) adding the following
phrase after the end of clause (xiv) thereof: “(xv) payments under section 1.5
of the Chanin Purchase Agreement, (iii) restating clause (xv) thereof in its
entirety as follows: “(xvi) any increase in the Working Capital of Holdings
during such period (measured as the excess of such Working Capital at the end
of such period over such Working Capital at the beginning of such period, but
in any event, for the fiscal year ending December 31, 2006, excluding the
Working Capital of Chanin)”, (iv) restating clause (b)(i) thereof in its
entirety as follows: “any decrease in the Working Capital of Holdings during
such period (measured as the excess of such Working Capital at the beginning of
such period over such Working Capital at the end thereof, but in any event, for
the fiscal year ending December 31, 2006, excluding the Working Capital of
Chanin)” and (v) adding the words “, in any event,” after the word “including”
in clause (vii) thereof.

 

(e)           (i) The definition of “Excluded Foreign
Subsidiary” in Section 1.1 of the Credit Agreement is amended by (x)
adding the phrase “(A) Chanin Capital LLC to the extent it is a duly registered
broker-dealer under the Securities Exchange Act of 1934, as amended, and the
related rules and regulations promulgated thereunder, Chanin Shared Opportunity
Fund LLC and Chanin Investment Fund LLC and (B)” immediately after the word “means”;
and (y) substituting for the phrase “Excluded Foreign Subsidiary” the phrase “Excluded
Subsidiary” in each instance in which they appear in the Credit Agreement or in
any other Loan Document and (ii) the Credit Agreement and each other Loan
Document is further amended by substituting for the phrase “Excluded Foreign
Subsidiary” in each instance it appears therein, the phrase “Excluded
Subsidiary”.

 

(f)            The definition of “Permitted
Acquisition” in Section 1.1 of the Credit Agreement is amended by
(i) replacing the phrase “any Proposed Acquisition” appearing in the first line
thereof with the phrase “(1) the Chanin Acquisition and (2) any other Proposed
Acquisition”, (ii) adding the phrase “(other than the Chanin Acquisition)”
immediately after the phrase “and all other Permitted Acquisitions” appearing
in clause (a) thereof and (iii) adding the following immediately after the
phrase “$25,000,000,” appearing at the end of clause (a) thereof: “provided,
that amounts expended in respect of the Chanin Acquisition shall not be
included in any of the foregoing calculations”.

 

(g)           The definition of “Note” in Section
1.1 of the Credit Agreement is hereby deleted in its entirety and a new
definition is added to read as follows:

 

“Note” means (i) a
promissory note of the Borrower, in substantially the form of Exhibit B,
payable to the order of a Lender in any Facility in a principal amount
equal to the amount of such Lender’s Commitment under such Facility (or, in the
case of the Initial Term Loan Facility or Additional Term Loan Facility, the
aggregate initial principal amount of the Initial Term Loans or Additional Term
Loans, as applicable), and (ii) any amended and restated promissory note of the
Borrower, in substantially the form of Exhibit B-1 payable to the order
of a Lender in any Facility in a principal amount equal to the Lender’s
Commitment under such Facility (or, in the case of the Term Loan Facility, the
aggregate principal amount of the Term Loans).

 

(h)           The definition of “Related
Documents” in Section 1.1 of the Credit Agreement is amended by
adding the text “the Chanin Acquisition Documents,” immediately after the text “the
Acquisition Agreement,” appearing therein.

 

(i)            The definition of “Related
Transactions” in Section 1.1 of the Credit Agreement is amended by
(i) adding the text “the consummation of the Chanin Acquisition,” immediately after
the text “the consummation of the Acquisition,” appearing therein and (ii)
adding the following at the end thereof: 

 

4

 

“It is understood and agreed that any reference to the
term “Related Transactions” in the context of any representation or warranty
made or any condition fulfilled or to be fulfilled prior to the Amendment No. 2
Effective Date, shall be a reference to such term without regard to the
inclusion of the consummation of the Chanin Acquisition.”.

 

(j)            The definition of “Scheduled
Revolving Credit Termination Date” in Section 1.1 is amended by
changing the phrase “6th anniversary of the Closing Date” to “October
1, 2011.”

 

(k)           The definition of “Term Loan” in Section
1.1 of the Credit Agreement is amended and restated in its entirety as
follows:

 

“Term Loan” has
the meaning ascribed to that term in Section 2.1(b).

 

(l)            The definition of “Term Loan
Maturity Date” in Section 1.1 of the Credit Agreement is amended by
replacing the phrase “7th anniversary of the Closing Date” with the
phrase “October 1, 2012.”

 

(m)          The definition of “Term Loan
Commitment” in Section 1.1 of the Credit Agreement is amended and
restated in its entirety as follows:

 

“Term Loan Commitment” means and includes each
of the Initial Term Loan Commitment and the Additional Term Loan Commitment.

 

(n)           The definition of “Term Loan
Facility” in Section 1.1 of the Credit Agreement is amended and
restated in its entirety as follows:

 

“Term Loan Facility” means and includes the
Initial Term Loan Facility and the Additional Term Loan Facility.

 

(o)           The definition of “Term Loan
Lender” in Section 1.1 of the Credit Agreement is amended and
restated in its entirety as follows:

 

“Term Loan Lender” means and includes each
Initial Term Loan Lender and each Additional Term Loan Lender.

 

(p)           Section 2.1(b) of the Credit
Agreement is amended and restated in its entirety as follows:

 

(b)           Term Loan Commitments  The Initial Term Loan Lenders, in fulfillment
of their respective Initial Term Loan Commitments, made Initial Term Loans to
Borrower in two draws, on
the Closing Date and on March 31, 2006, respectively, in an aggregate amount of
$65,000,000. The outstanding principal balance of the Initial Term Loan
as of the Amendment No. 2 Effective Date is $64,350,000 (the “Initial Term
Loan Balance”). On the terms and subject to the conditions contained in
this Agreement, each Additional Term Loan Lender agrees, severally and not
jointly, to lend to Borrower in one draw, on the Amendment No. 2 Effective Date,
its Pro Rata Share of the aggregate amount of $15,000,000 (the “Additional
Term Loan”, and, when added to and combined with the Initial Term Loan
Balance, the “Term Loan”). Amounts of the Initial Term Loan or the
Additional Term Loan repaid may not be reborrowed.

 

(q)           Section 2.2(a) of the Credit
Agreement is amended by (i) replacing the proviso in the first sentence
thereof, with the following: “provided, however, that the
Borrower Representative may not request a LIBO Rate Loan with respect to the
Additional Term Loan with an Interest Period of longer

 

5

 

than one month  until the
earlier of (x) the date 30 days after the Amendment No. 2 Effective Date and
(y) the completion of “Primary Syndication” referred to in the New Fee Letter.”

 

(r)            Section 2.5(b) of the Credit
Agreement is amended and restated in its entirety as follows:

 

(b) Mandatory. All outstanding Commitments
shall terminate (i) in the case of the Initial Term Loan Facility, on the last
day of the Term Loan Availability Period (after giving effect to any Borrowing
occurring on such date), (ii) in the case of the Additional Term Loan Facility,
on the Amendment No. 2 Effective Date (after giving effect to any Borrowing
occurring on such date), and (iii) in the case of the Revolving Credit
Facility, on the Revolving Credit Termination Date.

 

(s)           Section 2.6(b) of the Credit
Agreement is amended and restated in its entirety as follows:

 

(b)           The
Borrower promises to repay the amount of the Term Loan on the Term Loan at the
dates and in the amounts set forth below and on the Term Loan Maturity Date:

 

 

	
  DATE

  	
   

  	
  AMOUNT *

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  January 1, 2007

  	
   

  	
  0.25

  	
  %

  
	
  April 1, 2007

  	
   

  	
  0.25

  	
  %

  
	
  July 1, 2007

  	
   

  	
  0.25

  	
  %

  
	
  October 1, 2007

  	
   

  	
  0.25

  	
  %

  
	
  January 1, 2008

  	
   

  	
  0.25

  	
  %

  
	
  April 1, 2008

  	
   

  	
  0.25

  	
  %

  
	
  July 1, 2008

  	
   

  	
  0.25

  	
  %

  
	
  October 1, 2008

  	
   

  	
  0.25

  	
  %

  
	
  January 1, 2009

  	
   

  	
  0.25

  	
  %

  
	
  April 1, 2009

  	
   

  	
  0.25

  	
  %

  
	
  July 1, 2009

  	
   

  	
  0.25

  	
  %

  
	
  October 1, 2009

  	
   

  	
  0.25

  	
  %

  
	
  January 1, 2010

  	
   

  	
  0.25

  	
  %

  
	
  April 1, 2010

  	
   

  	
  0.25

  	
  %

  
	
  July 1, 2010

  	
   

  	
  0.25

  	
  %

  
	
  October 1, 2010

  	
   

  	
  0.25

  	
  %

  
	
  January 1, 2011

  	
   

  	
  0.25

  	
  %

  
	
  April 1, 2011

  	
   

  	
  0.25

  	
  %

  
	
  July 1, 2011

  	
   

  	
  0.25

  	
  %

  
	
  October 1, 2011

  	
   

  	
  0.25

  	
  %

  
	
  January 1, 2012

  	
   

  	
  0.25

  	
  %

  
	
  April 1, 2012

  	
   

  	
  0.25

  	
  %

  
	
  July 1, 2012

  	
   

  	
  0.25

  	
  %

  
	
  October 1, 2012

  	
   

  	
  94.25

  	
  %

  

* As a percentage
of the balance of the Term Loan as of the Amendment No. 2 Effective Date and
after giving effect to the advance of the Additional Term Loan.

 

6

 

(t)            Section 2.8 of the Credit
Agreement is amended by adding the following after the end of paragraph (e) of
such Section:

 

“(f)          Chanin
Purchase Agreement Payments. Upon receipt of (i) any Sellers Adjustment
Payment (as such term is defined in the Chanin Purchase Agreement as of the
date hereof) or (ii) any
indemnification payment under Article X of the Chanin Purchase Agreement (other
than amounts paid as a result of a claim by a Loan Party for indemnification
under the Chanin Purchase Agreement to the extent that the amounts so received
are applied by such Loan Party for the purpose of (A) replacing, repairing or
restoring any assets or properties of such Loan Party or satisfying the
condition giving rise to the claim for indemnification, (B) payment of (or
reimbursement of payments made for) claims and settlements to third Persons not
an Affiliate of or a Loan Party, or (C) otherwise covering any out-of-pocket
expenses incurred by the Borrower in obtaining such indemnification), the
Borrower shall pay to the Administrative Agent an amount equal to such payment
for application to the Loans in accordance with Section 2.8(e).”

 

(u)           Section 2.14(e) of the Credit
Agreement is amended by adding the following at the end of such section:  Without limitation of the foregoing, to the
extent that a Lender holds a Note issued prior to the Amendment No. 2 Effective
Date evidencing its Initial Term Loan or its Revolving Credit Commitment and
such Lender requests a Note on or after the Amendment No. 2 Effective Date to
evidence such Lender’s Loans in the Term Facility or Revolving Credit Facility,
such Lender shall return its previously issued Note or Notes.

 

(v)           Article III of the Credit Agreement
is amended by adding the following new Section 3.3 immediately after the
end of Section 3.2 as follows:

 

3.1            Conditions Precedent to
Additional Term Loans. The obligation of each Lender to make any Additional
Term Loan on the Amendment No. 2 Effective Date is subject to the satisfaction
or due waiver of each of the following conditions precedent: (a) all conditions
to the effectiveness of Amendment No. 2 in Section 3 thereof shall have been satisfied
or waived by the Additional Term Loan Lenders and (b) all conditions to the
making of a Loan under Section 3.2 shall have been satisfied or waived.

 

(w)          Each of Section 4.2(c) and Section
6.3 of the Credit Agreement is amended by (i) replacing the title of such Section
4.2(c) with the phrase “Purchase Agreements” and (ii) replacing the
text “the Acquisition Agreement” in each instance in which it appears in either
such section with the text “any Purchase Agreement”.

 

(x)            Section 7.10(a)(ii) of the Credit
Agreement is amended by adding the following immediately after the words “Excluded
Foreign Subsidiary” in subclause (y):

 

“(except that notwithstanding the foregoing, the Loan
Parties shall be required to pledge 100% of the Stock of Chanin Capital LLC and
shall not be required to pledge any of the Stock of Chanin Shared Opportunity
Fund LLC or Chanin Investment Fund LLC)”.

 

(y)           Section 8.1 of the Credit
Agreement is amended by (i) deleting the “and” following clause (k) thereof,
(ii) deleting the period at the end thereof and replacing it with “; and” and
(iii) adding the following after such phrase “; and” to read as follows: “(m)
Indebtedness arising under section 1.5 of the Chanin Purchase
Agreement and Indebtedness of Chanin & Company, LLC in respect of
reimbursement and other obligations in respect of that certain letter of
credit issued by Northern Trust

 

7

 

Bank of California, N.A. on October 19, 2006 for
account of Chanin & Company, LLC, for the benefit of 330 Madison
Company LLC in the original face amount of $96,716.00 (but not any extension,
renewal, increase or replacement thereof).”

 

(z)            Section 8.2 of the Credit
Agreement is amending by adding a new paragraph (l) immediately following
paragraph (k) thereof as follows:

 

“(l) a Lien in favor of the issuer of the letter of
credit described in Section 8.1(m) (and securing
the obligations of Chanin & Company, LLC in respect of such letter of
credit)  on that certain certificate of deposit
issued by Northern Trust Bank of California, N.A. in the face amount of
$96,716.00 and maturing on November 1, 2007, it being agreed that
notwithstanding anything contained in the Security Agreement or any other Loan
Document to the contrary, so long as such certificate of deposit is collateral
for such issuer, such certificate of deposit shall not be collateral and shall
not be required to be pledged or delivered to the Administrative Agent”;

 

(aa)         Section 8.3(e) of the Credit
Agreement is amended by adding the following immediately prior to the semicolon
ending such section: “provided, further, that notwithstanding the
foregoing or anything to the contrary contained in this Agreement, in no event
shall any one of more Loan Parties invest in or transfer any money or property
to or incur any Guaranty Obligation in respect of any Indebtedness or
obligations of Chanin Shared Opportunity Fund LLC or Chanin Investment Fund
LLC, other than contributions of cash of not more than $20,000 per Fiscal Year
in the aggregate from all Loan Parties to each such entity and not more than
$30,000 per Fiscal Year in the aggregate to both such entities.”

 

(bb)         Article VIII of the Credit Agreement is
amended by adding the following new Section 8.16 immediately after the
end of Section 8.15 as follows:

 

“Section 8.16         Payments
of Contingent Payment Amounts. No Group Member shall make any payment of
any Indebtedness arising under section 1.5 of the Chanin Purchase Agreement
unless (i) such payment is due and payable under the Chanin Purchase Agreement,
and does not exceed as to the applicable Post-Closing Period (as defined as of
the date hereof in the Chanin Purchase Agreement) $5,000,000, (ii) at the time
and after giving effect to such payment, no Default under Section 9.1(a)
or Event of Default is continuing, (iii) such Group Member shall have provided
to the Administrative Agent, at least ten (10) days in advance of making such
payment a detailed calculation of all components of such payment, a detailed
calculation of compliance with clause and (iv) of this Section 8.16 with
respect to such payment and the proposed date that such payment is to be made.”

 

(cc)         Section 9.1(d) of the Credit
Agreement is amended by (i) deleting the word “or” at the end of subclause (ii)
and adding a comma immediately after the phrase “of such Indebtedness” and (ii)
adding the phrase “, or (iv) Holdings shall fail to make any payments required
under section 1.5 of the Chanin Purchase Agreement when due (after giving
effect to any dispute resolution provisions of such section);”.

 

(dd)         Schedule I to the Credit
Agreement is amended and restated as set forth on Schedule I hereto.

 

(ee)         The Credit Agreement is further amended
by adding as Exhibit B-1 the Exhibit attached hereto as Exhibit B-1.

 

8

 

Section 3.

 

CONDITIONS TO EFFECTIVENESS

 

The consent provided in Section 2.1 and the amendments contained
in Section 2.2 shall become effective on the date (the “Effective
Date”) that the following conditions have been satisfied in full or waived
by the Required Lenders:

 

(a)           Administrative
Agent shall have received one or more counterparts of (i) this Amendment No. 2
executed and delivered by the Loan Parties,
the Required Lenders (including the Lenders who are listed in Schedule I
set forth in Section 2.2(a) hereof with an Additional Term Loan
Commitment) and Administrative Agent, (ii) the Assignment of Representations,
Warranties, Covenants and Indemnities, in the form attached hereto as Exhibit
A, executed and delivered by Holdings and Administrative Agent, (iii) an
amendment and restatement, each in the form of Exhibit B-1 of each Note
held by a Lender whose commitment is being increased hereunder, each dated the
Amendment No. 2 Effective Date and between the maker of such Note and such
Lender and (iv) the other documents listed on the closing checklist attached
hereto as Exhibit E.

 

(b)           Administrative Agent shall have received duly executed
copies of the Chanin Purchase Agreement, certified as correct and complete by
Holdings, and all other Chanin Acquisition Documents and material
related agreements and instruments, and all opinions, certificates and other
documents reasonably requested by the Administrative Agent and all required
regulatory and third party approvals.

 

(c)           omitted.

 

(d)           The conditions set forth in clauses
(b), (c), (e), (f) and, to the extent that receipt of any governmental approval
or material third-party consent referred to in clause (g) of the definition of
Permitted Acquisition is a condition to closing under the Chanin Purchase
Agreement, (g) of the definition of “Permitted Acquisition” in the Credit
Agreement (as in effect immediately prior to the Effective Date) shall have
been satisfied or waived by the Administrative Agent with respect to the Chanin
Acquisition.

 

(e)           There shall be no continuing Default
or Event of Default and the representations and warranties of the Loan Parties contained in the Loan
Documents, as amended by this Amendment No. 2, shall be true and correct in all
material respects as of the Effective Date or such other specific date as of
which any such representation or warranty is by its terms made.

 

(f)           Since December 31, 2005 and after
giving effect to the Chanin Acquisition and the funding of the Additional Term
Loan, no event or condition shall have occurred which could reasonably be
expected to have a Material Adverse Effect.

 

(g)          Administrative Agent shall have
received the fees described in the New Fee Letter.

 

(h)          Administrative Agent shall have
received (a) the results, satisfactory to it, of UCC, judgment and tax lien
searches from such jurisdictions as the Administrative Agent shall have
reasonably required with respect to Chanin and (b) such evidence of insurance
with respect to the business and property being acquired in the Chanin
Acquisition together with an endorsement naming the Administrative Agent as
loss payee and an additional insured for the benefit of the Administrative
Agent and the Lenders in accordance with Section 7.5 of the Credit
Agreement as Administrative Agent shall have reasonably requested and in form
and substance reasonably satisfactory to the Agent.

 

9

 

(i)           Administrative Agent shall have
received a Pro Forma Balance Sheet as of the last fiscal month for which
financial statements are available, giving effect to the acquisition of Chanin
and the incurrence of the Additional Term Loan.

 

(j)           Within one hundred twenty (120) days
of the Effective Date, (a) Administrative Agent shall receive such control
agreements with respect to deposit accounts and securities accounts, if any, of
Chanin as the Administrative Agent shall have requested in accordance with Section
7.14 of the Credit Agreement, each in form and substance satisfactory to
the Administrative Agent, or (b) Chanin shall cause each of its deposit
accounts and securities accounts (to the extent not subject to a control
agreement pursuant to subclause (a) above), if any, to be closed and the funds
in each such account transferred into an Account subject to a control agreement
in form and substance satisfactory to the Administrative Agent.

 

(k)          (i) All conditions to the closing of
the Chanin Acquisition shall have been satisfied or, with (unless such waiver
would reasonably not be expected to have a materially adverse effect on the
Lenders) the consent of the Administrative Agent (not to be unreasonably
withheld), waived and concurrently with the effectiveness of this Amendment No.
2, the Chanin Acquisition shall be consummated in accordance with the Chanin Acquisition
Documents in all material respects and (ii) the equity interests of and the
business and assets owned by Chanin shall be free and clear of all Liens (other
than Permitted Liens).

 

(l)            The Administrative Agent shall have
been provided a first priority perfected Lien (subject to Permitted Liens) in
all equity interests of Chanin and all assets of Chanin in accordance with the
requirements of the Loan Documents, and Holdings, the Borrowers and Chanin
shall have executed such documents and taken such actions as may be required by
Administrative Agent in connection therewith.

 

Section 4.

 

LIMITATION ON SCOPE

 

Except as expressly amended hereby, the Loan Documents shall remain in
full force and effect in accordance with their respective terms. The amendments
set forth herein shall be limited precisely as provided for herein and shall
not be deemed to be waivers of, amendments of, consents to or modifications of
any term or provision of the Loan Documents or any other document or instrument
referred to therein or of any transaction or further or future action on the
part of any Loan Party requiring the consent of Administrative Agent or Lenders
except to the extent specifically provided for herein. Administrative Agent and
Lenders have not and shall not be deemed to have waived any of their respective
rights and remedies against any Loan Party for any existing or future Defaults
or Events of Default.

 

Section 5.

 

MISCELLANEOUS

 

(a)           Each Loan Party
hereby represents and warrants as follows:

 

(i)            this Amendment No. 2 has been duly
authorized and executed by such Loan Party and the Credit Agreement, as amended
by this Amendment No. 2 is the legal, valid and binding obligation of such Loan
Party, enforceable in accordance with its terms, except as (1) such enforceability
may be limited by applicable bankruptcy, insolvency, reorganization, moratorium
and similar laws affecting the rights of creditors in general and (2) the
availability of equitable remedies may be limited by equitable principles of
general applicability; and

 

10

 

(ii)           Such Loan Party repeats and restates
the representations and warranties of such Loan Party contained in the Credit
Agreement as of the Effective Date, except to the extent such representations
and warranties relate to a specific date; provided that references to
the “Credit Agreement” or “this Agreement” in such representations and
warranties shall be deemed to be references to the Credit Agreement as amended
pursuant to this Amendment No. 2.

 

(b)           This Amendment No. 2
is being delivered in the State of New York.

 

(c)           Each Loan Party
hereby ratifies and confirms that the Credit Agreement as amended hereby
remains in full force and effect.

 

(d)           Each Loan Party
agrees that all Loan Documents, as amended hereby or otherwise amended in
connection herewith, remain in full force and effect notwithstanding the
execution and delivery of this Amendment No. 2 and all other Loan Documents and
that nothing contained in this Amendment No. 2 shall constitute a defense to
the enforcement of any Loan Document.

 

(e)           This Amendment No. 2
may be executed by the parties hereto in separate counterparts, each of which
when so executed and delivered shall be deemed an original, but all of which
counterparts together shall constitute but one and the same instrument.

 

(f)            All
references in the Loan Documents to the “Credit Agreement” and in the Credit
Agreement as amended hereby to “this Agreement,” “hereof,” “herein” or the like
shall mean and refer to the Credit Agreement as amended by this Amendment No. 2
(as well as by all subsequent amendments, restatements, modifications and
supplements thereto).

 

(g)           This Amendment is a “Loan Document” and each of the
following provisions of the Credit Agreement is hereby incorporated herein by
this reference with the
same effect as though set forth in its entirety herein, mutatis mutandis, and as if “this Agreement” in any such
provision read “this Amendment No. 2”: Section 12.13 (Governing Law), Section
12.14 (Jurisdiction), Section 12.15 (Waiver of Jury Trial) and Section 12.16
(Severability).

 

 

[Signature page is next
page]

 

11

 

Witness the due execution hereof by the respective
duly authorized officers of the undersigned of this Amendment No. 2 to the
Credit Agreement as of the date first written above.

 

 

	
   

  	
  DUFF & PHELPS, LLC

  
	
   

  	
  as Borrower

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jacob Silverman

  	
   

  
	
   

  	
  Name:

  	
  Jacob Silverman

  
	
   

  	
  Title:

  	
  EVP

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DUFF & PHELPS
  ACQUISITIONS, LLC

  
	
   

  	
  as Holdings

  
	
   

  	
   

  
	
   

  	
  By: DUFF & PHELPS HOLDINGS
  LLC

  
	
   

  	
  its Member

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Noah Gottdiener

  	
   

  
	
   

  	
  Name:

  	
  Noah Gottdiener

  
	
   

  	
  Title:

  	
  CEO

  

 

 

	
   

  	
  GENERAL
  ELECTRIC CAPITAL

  CORPORATION,

  
	
   

  	
   

  
	
   

  	
  as
  Administrative Agent, L/C Issuer, Swingline

  Lender and Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kimberly A.
  Mason

  	
   

  
	
   

  	
  Name:  

  	
  Kimberly A.
  Mason

  
	
   

  	
  Title:

  	
  Its duly
  authorized signatory 

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  Additional Term
  Loan Commitment up to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  $ 15,000,000.00Exhibit 10.7

 

NOAH GOTTDIENER

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 Noah Gottdiener (“Executive”).

 

WHEREAS, Executive has been employed pursuant
to a previous employment agreement dated as of September 30, 2005 with Duff
& Phelps Acquisitions, LLC, a Delaware limited liability company (“D&P
Acquisitions LLC”), Duff & Phelps Management Co., LLC, and Duff &
Phelps, LLC, a Delaware limited liability company (the “Prior Employment
Agreement”); and

 

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 Chief Executive 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 Chief
Executive Officer of the Company, Executive shall render executive, policy, and
other management services to the 

 

1

 

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 Chief Executive 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) 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.

 

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 $750,000,
which salary may, but need not be, increased from time to time as determined by
the Compensation Committee (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.

 

2

 

(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 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. D&P, LLC shall give credit to Executive for all service with Stone Ridge
Partners LLC to the extent Stone Ridge Partners LLC recognized such service,
for all purposes for which such service was taken into account or recognized by
Stone Ridge Partners LLC, as applicable, but not to the extent that crediting
such service would result in duplication of benefits; provided, however, that,
not withstanding the foregoing, such 

 

3

 

service shall only be recognized to the
extent the service would be recognized under D&P, LLC’s plans had the
service been performed at D&P, LLC.

 

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 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 

 

4

 

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 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, provided, that Executive’s replacement as Chairman of the
Board shall not constitute Good Reason if a majority of the Board determines,
in its good faith judgment, that Executive should not serve as Chairman as a
matter of corporate governance and the Board consults with Executive before the
Board selects an individual to replace Executive as Chairman, and provided,
further that, Executive shall not have Good Reason to terminate his employment if
following an acquisition of the Company (whether by merger, stock purchase or
otherwise), Executive is required to report to the Chief Executive Officer of
the Parent Company that acquires the Company; 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:

 

5

 

(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
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 

 

6

 

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 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 

 

7

 

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 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.

 

8

 

(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 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 

 

9

 

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 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 

 

10

 

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.

 

(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 

 

11

 

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 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 

 

12

 

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.

 

(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 

 

13

 

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 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.

 

14

 

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.

 

(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 

 

15

 

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

 

if to Executive:

 

Noah Gottdiener

239 East 61st Street

New York, NY 10021

 

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

 

16

 

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

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 

 

17

 

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.

 

[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

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NOAH
  GOTTDIENER

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  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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