Document:

Document

Exhibit 10.22

RESTRICTED STOCK UNIT AND DEFERRED CASH AWARD AGREEMENT
THIS RESTRICTED STOCK UNIT AND DEFERRED CASH AWARD AGREEMENT (this “Agreement”) is made by and between Cowen Inc. (the “Company”), and [insert name], (the “Grantee”), as of February 19, 2020 (the “Grant Date”).
RECITALS
WHEREAS, the Company desires to grant to the Grantee the restricted stock units award (the “RSU Award”) and deferred cash award (the “Deferred Cash Award”) described herein (collectively, the “Awards”), subject to the terms of the Cowen Inc. 2010 Equity and Incentive Plan, as amended from time to time (the “Plan”);
WHEREAS, the RSU Award shall consist of a grant of restricted stock units of Cowen Inc. in accordance with the terms and subject to the conditions set forth in this Agreement and the Plan; 
WHEREAS, the Deferred Cash Award shall consist of a grant of deferred cash in accordance with the terms and subject to the conditions set forth in this Agreement and the Plan; 
WHEREAS, the Grantee has accepted the grant of the Awards and hereby agrees to the terms and conditions hereinafter stated; and
WHEREAS, the capitalized terms used but not defined herein shall have the respective meanings given to them in the Plan;
NOW, THEREFORE, in consideration of the foregoing recitals and of the promises and conditions herein contained, it is agreed as follows:
ARTICLE I
Section 1.1 - Grant of Restricted Stock Units.
The RSU Award granted to the Grantee by the Company as of the Grant Date consists of [insert] restricted stock units (“RSUs”) pursuant to the terms and subject to the conditions and restrictions of this Agreement and the Plan.  Each RSU constitutes an unfunded and unsecured promise of the Company to deliver (or cause to be delivered) to the Grantee upon settlement, subject to the terms of this Agreement, one share of Stock.  Until such settlement and delivery, the Grantee has only the rights of a general unsecured creditor, and no rights as a shareholder of the Company, provided that, whenever a normal cash dividend is paid on shares of Stock, the Company shall credit to the Grantee an amount of cash equal to the product of the per-share amount of the dividend paid times the number of then unsettled RSUs.  Such credited amounts shall be paid to the Grantee when and only to the extent the Stock underlying the RSU is transferred to the Grantee in accordance with this Agreement.
Section 1.2 - Grant of Deferred Cash.
The Deferred Cash Award granted to the Grantee by the Company as of the Grant Date consists of the right to receive [insert] dollars ($[insert]) in deferred cash, less applicable taxes and payroll deductions and subject to the conditions and restrictions of this Agreement and the Plan (“Deferred Cash”).  Until the Company pays the Grantee Deferred Cash under this Agreement, all funds shall continue to be part of the general funds of the Company, and title to and beneficial ownership of any 
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Exhibit 10.22

assets, whether cash or investments, which the Company may, in its sole discretion, set aside or earmark to meet its obligations hereunder shall at all times remain in the Company until paid to the Grantee.  The Grantee shall not under any circumstances acquire any property interest in any specific assets of the Company.  
Section 1.3 - Vesting and Settlement of Awards.
(a) Normal Vesting and Settlement Schedule.  The RSU Award shall vest and be settled as follows:  (i) twelve and one half percent (12.5%) on December 1, 2020; (ii) twelve and one half percent (12.5%) on September 1, 2021; (iii) twenty-five percent (25%) on September 1, 2022; (iv) twenty-five percent (25%) on September 1, 2023; (v) twenty-five percent (25%) on September 1, 2024; and the Deferred Cash will vest as follows: (vi) twelve and one half percent (12.5%) on November 15, 2020; (vii) twelve and one half percent (12.5%) on August 15, 2021; (viii) twenty-five percent (25%) on August 15, 2022; (ix) twenty-five percent (25%) on August 15, 2023; and (x) twenty-five percent (25%) on August 15, 2024 (each a “Vesting Date,” and collectively, the “Vesting Dates), provided that (A) as of each Vesting Date the Grantee is employed in Good Standing by the Employer; and (B) with respect to the settlement of RSUs, the Grantee satisfies the Tax Withholding Amount (defined below).  Vested Deferred Cash will be settled and paid via payroll by the first regularly schedule payroll after the Vesting Date.  
(b) Interest on Deferred Cash.   For each period of time in which a portion of the Deferred Cash Award remains unvested, and has not been forfeited, the Grantee shall be entitled to interest on the unvested amount at a rate equal to 70 basis points per annum.  Any interest accrued with respect to the Deferred Cash Award as of a given Vesting Date shall be paid in full when the vested Deferred Cash is settled.  In the event that the Grantee forfeits the right to receive any unvested Deferred Cash, the Grantee also forfeits any then-accrued and unpaid interest.   
(c) Vesting and Settlement in the Event of a Qualifying Termination.  Any unvested Awards shall vest and be settled in full due to a Qualifying Termination, provided that (i) the Grantee (or Grantee’s executor or estate as applicable) satisfies the Tax Withholding Amount related the settlement of the RSU Award; and (ii) the Grantee (or Grantee’s executor or estate as applicable) executes, delivers, and does not revoke a general release of claims in favor of the Company and its Affiliates, in a form requested by the Company, within seven (7) days (or such longer period as required by law for the release to become effective, but in no event longer than fifty-two (52) days).  For purposes of vesting and settlement under this Section, the vesting date shall be the date Grantee’s employment terminates, and the settlement date will be within sixty (60) days thereafter.  If the settlement under this Section could occur in more than one taxable year depending on the date Grantee executes and returns the general release, then, regardless of the year in which Grantee executes and returns the general release, the settlement date will be the later of (y) January 1 of the next calendar year; or (z) the next payroll date that is at least ten (10) business days after the general release becomes irrevocable.  If the Grantee (or Grantee’s executor or estate as applicable) does not execute and deliver the general release within the time permitted (or if the Grantee (or Grantee’s executor or estate as applicable) revokes the general release if permitted by law), all unvested Awards will be forfeited as of the date of termination of employment.  
(d) Vesting and Settlement in the Event of a Qualifying Retirement.  Any unvested Awards shall vest on the date of the Grantee’s Qualifying Retirement and shall be settled at such times set forth in Section 1.3(a) above, provided that (i) the Grantee satisfies the Tax Withholding Amount related the settlement of the RSU Award; (ii) the Grantee executes, delivers, and does not revoke a general release of claims in favor of the Company and its Affiliates, in a form requested by the Company, within seven (7) days (or such longer period as required by law for the release to become effective, but in no event longer 
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Exhibit 10.22

than fifty (50) days); and (iii) prior to each settlement date after Grantee’s Retirement Date, Grantee has provided the Company with a notarized affidavit in a form requested by the Company, which will include, but not be limited to, affirming whether Grantee is in compliance with this Agreement, whether the Grantee is engaged in a Competitive Activity, and disclosing Grantee’s then current employer, if any. In the event that the Grantee engages in any Competitive Activity prior to an applicable settlement date, the Grantee shall forfeit for no consideration all unsettled Awards that vested pursuant to this Section. Notwithstanding anything herein to the contrary, for purposes of vesting and settlement under this Section, the vesting date shall be the date Grantee’s employment terminates, and the settlement date will be the later of the date the general release becomes irrevocable and the settlement date set forth in Section 1.3(a) above.  If the Grantee does not execute and deliver the general release within the time permitted (or if the Grantee) revokes the general release if permitted by law), all unvested Awards will be forfeited as of the date of termination of employment.
(e) Vesting and Settlement Provision in Employment Agreement.  In the event that the Grantee is a party to an employment agreement with compensation terms in effect as of the Grant Date (“Employment Agreement”) that provides for accelerated vesting of any equity-based or deferred cash awards upon any event not specified in this Section, the vesting terms of such Employment Agreement shall control and the Awards will vest in accordance with the terms of such Employment Agreement upon the occurrence of such event and shall be settled within sixty (60) days of vesting, provided the Grantee has satisfied any Tax Withholding Amount related to such vesting.  
Section 1.4 - Forfeiture.
Except as set forth above, if the Grantee’s employment with the Employer is terminated, then any unvested Awards shall immediately be forfeited to the Company (and in the case of a voluntary resignation, such forfeiture shall occur as of the commencement of the Notice Period, as defined below), and neither the Grantee nor any of the Grantee’s successors, heirs, assigns, or personal representatives shall thereafter have any further rights or interests in such then-unvested Awards.  Additionally, if the Company reasonably determines, in its sole discretion, that the Grantee has violated the Notice of Termination Section of this Agreement, the Restrictive Covenants Section of this Agreement, or other notice obligations or restrictive covenants to which Grantee is otherwise subject, or commits an act or omission which would qualify as Cause (defined below) (any of these violations, a “Breach”), then any unvested Awards shall immediately be forfeited to the Company as of the date of the Company’s determination, and neither the Grantee nor any of the Grantee’s successors, heirs, assigns, or personal representatives shall thereafter have any further rights or interests in such unvested Awards. 
Section 1.5 - Taxes.
The Grantee agrees to pay promptly, at the time the Grantee recognizes taxable income or wages in respect of the Awards, the minimum amount equal to the federal, state, and local taxes and withholdings the Company determines are required to be withheld under applicable tax laws with respect to the Awards (the “Tax Withholding Amount”), and subject to the conditions and restrictions of this Agreement and the Plan.  In the case of a Qualifying Retirement, FICA taxes (e.g., social security and Medicare) are due on all vested but unsettled RSUs. With respect to the Deferred Cash, the Deferred Cash paid to the Grantee will be reduced by the Tax Withholding Amount.  With respect to RSUs, payment of the Tax Withholding Amount may be effected through (a) payment by the Grantee to the Company in cash or cash equivalents; (b) at the discretion of the Company, and in accordance with Company policy, either (x) the Company withholding the number of shares of Stock with an aggregate fair market value on the date of vesting equal to the Tax Withholding Amount; or (y) selling shares to cover the Tax 
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Exhibit 10.22

Withholding Amount on the open market; or (c) at the discretion of the Company, any combination of these methods.  If the Grantee does not pay the Tax Withholding Amount in accordance with the terms of this Section within forty-five (45) days after the Vesting Date, at the election of the Company, any then-vested, but unsettled, RSUs having an aggregate value equal to the Tax Withholding Amount (as determined by the Company in its sole discretion) shall immediately be forfeited to the Company and neither the Grantee nor any of the Grantee’s successors, heirs, assigns, or personal representatives shall thereafter have any further rights or interests in such RSUs.
ARTICLE II 
Section 2.1 - Definitions.  Notwithstanding the definitions set forth in this Section, if the Grantee is subject to an Employment Agreement that defines “Cause,” “Disability,” or “Good Standing,” such term will have the meaning set forth in the Employment Agreement, as amended by any subsequent deferred compensation award agreements.
(a) “Affiliate” means, with respect to any entity, any other entity that, directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, such entity.
(b) “Cause” means when the Employer, in its sole discretion in good faith, determines that: (i) the Grantee has breached any material provision of the Plan; this Agreement; Grantee’s Employment Agreement, offer letter, Terms and Conditions of Employment, or any deferred compensation award agreement including, but not limited to, the Notice of Termination Section or Restrictive Covenants Section below or in Grantee’s Employment Agreement or Terms and Conditions of Employment; (ii) the Grantee has been indicted for, convicted of, pled guilty or nolo contendere to, or committed any felony, or has been convicted of or pled guilty or nolo contendere to any other crime (whether or not related to the Grantee’s duties for the Employer or any Affiliate) with the exception of minor traffic offenses; (iii) the Grantee has committed an act of fraud, dishonesty, gross negligence, or substantial misconduct in his performance of his duties or responsibilities; (iv) the Grantee has violated or has failed to comply with the internal policies of the Employer or any Affiliate, including its policies against discrimination, harassment or retaliation, or the rules and regulations of any regulatory or self-regulatory organization with jurisdiction over the Employer or any Affiliate; (v) the Grantee has failed to perform a material duty of Grantee’s position including, by way of example and not of limitation, Grantee’s insubordination, or failure or refusal to follow an instruction reasonably given by Grantee’s superiors in the course of employment; and (vi) the Grantee has committed an act which results in negative publicity to the Company, regardless of whether such act occurred within the performance of his or her duties or responsibilities.  
(c) “Competitive Activity” means, directly or indirectly, on behalf of a Competitor engaging in any activity which is the same as or reasonably similar to:  (1) the positions Grantee has held with the any Cowen Inc. Company, (2) the activities Grantee has performed for any Cowen Inc. Company, (3) the activities Grantee gained knowledge of by virtue of his or her work for a Cowen Inc. Company; or (4) any activity engaged in by any department, division, or other group Grantee has managed on behalf of a Cowen Inc. Company. Competitive Activity includes being involved in any manner as an employee, stockholder, owner, officer, director, partner, agent, consultant, independent contractor, registered representative or in any other corporate or representative capacity. Competitive activity applies within the United States; provided, however, that if Grantee’s activities or position are located in, involve contact with or Grantee conducts business with countries other than the United States, it includes those countries, as permitted by law.
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Exhibit 10.22

(d) “Competitor” includes any company, partnership, entity or person which is currently competitive with, or is preparing to be competitive with, a Cowen Inc. Company. 
(e) “Cowen Inc. Company” includes Cowen Inc. and its subsidies, affiliates and joint ventures including, but not limited to, Cowen Investment Management LLC, Cowen and Company, LLC, Cowen Prime Services LLC, ATM Execution LLC, Cowen Execution Services LLC, Westminster Research Associates, Cowen Execution International, Cowen International Limited, and each of their subsidiaries, affiliates and joint ventures.
(f) “Disability” means that the Grantee (i) is unable to engage in any substantial gainful activity, with or without reasonable accommodation, 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 twelve (12) months; or (ii) is, by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, receiving income replacement benefits for a period of not less than three (3) months under an accident and health plan covering employees of the Employer or any Affiliate.
(g) “Employer” means the Company or the Affiliate of the Company that employs the Grantee.
(h) “Good Standing” means that Grantee remains actively employed and (i) has not been given notice of the termination of Grantee’s employment; (ii) has not given notice of resignation or resigned; and (iii) is not currently suspended or under investigation for conduct that could, in the Company’s good faith determination, result in a termination for Cause.  
(i) “Length of Service” means Grantee’s completed years of service with any Cowen Inc. Company as reflected in Cowen’s human resources management system (currently Workday);
(j)  “Qualifying Retirement” means the Grantee’s voluntary resignation that satisfies each of the following conditions:  (i) as of the date Grantee provides resignation notice: (A) Grantee is at least fifty-eight (58) years of age, (B) Grantee’s Length of Service is at least five (5) years; and (C) Grantee’s age plus Length of Service equals at least sixty-eight (68) years; (ii) Grantee has provided the Employer with at least six (6) months prior written notice of the Grantee’s intention to voluntarily resign in order to retire (such notice to specify, among other things as may be required by the Employer, the intended Retirement Date); (iii) the Grantee continues to use his or her best efforts in the performance of his or her duties and responsibilities, including hiring Grantee’s replacement if requested by the Company, through Grantee’s Retirement Date; (vi) Grantee remains in Good Standing with the Employer through Grantee’s Retirement Date, and (v) Cause does not exist from the time the resignation notice is provided by the Grantee through the Grantee’s Retirement Date.
(k) “Qualifying Termination” means termination of the Grantee’s employment due to (i) termination by the Employer without Cause; or (ii) Grantee’s death or Disability.
(l) “Retirement Date” means the date Grantee’s employment terminates due to a voluntary resignation due to a Qualifying Retirement.

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Exhibit 10.22

Section 2.2 - Notice of Termination.
Other than for a Qualifying Retirement, Grantee shall not voluntarily resign without first giving advanced written notice of the effective date of Grantee’s resignation.  The length of Grantee’s notice period (“Notice Period”) and the amount of advanced written resignation notice is based on Grantee’s corporate title and business division on the date Grantee provides resignation notice as follows:
									
	Corporate Title
	Front Office
	Business Operations/ Shared Services

	Managing Director
	4 months
	2 months

	Director
	3 months
	45 days

	Investment Banking - Vice President, Associate and Analyst
Equities - Vice President, Associate and Analyst
Equity Research – Vice President and Associate
Business Operations – Vice President, Assistant Vice President, Associate and Analyst
All other titles (less senior than Director) not otherwise listed on this chart
	2 months

	1 month

Examples of Front Office include positions within Investment Management, Investment Banking, Equities, Sales and Trading, Research, Algorithmic Trading, Electronic Trading, Credit, Cowen Prime Services, Cowen Execution Services or positions in any other revenue generating Affiliates. Business Operations and Shared Services positions include areas such as Information Technology, Operations, Finance, Human Resources, Accounting and Legal and Compliance. This Notice of Termination Section expressly supersedes any shorter Notice Periods set forth in any offer letter, Terms and Conditions of Employment, or deferred compensation award agreement; provided, however, that if Grantee has agreed to a longer Notice Period pursuant to an offer letter, Terms and Conditions of Employment, or deferred compensation award agreement, the longer length of time governs.   If the Grantee has an Employment Agreement in effect as of the Grant Date that contains a Notice Obligation, then that provision governs.  
Grantee must deliver written notice of resignation pursuant to this Section to Grantee’s manager with a copy to the Head of Human Resources by hand, e-mail, or mail with proof of delivery (such as certified mail, UPS, or FedEx).  If Grantee is resigning to take another position, Grantee agrees to identify the new employer in the written resignation notice.  Unless Grantee receives prior written consent from the head of Grantee’s Division, Grantee agrees not to send out a “goodbye” e-mail or other written communication, either internally to employees or externally, announcing Grantee’s resignation or departure.  The obligations in this Section are Grantee’s “Notice Obligations”.
During the Notice Period, Grantee continues to be an employee.  Grantee will continue to receive Grantee’s base salary or draw on a normal payroll cycle and remain eligible for benefits through the last day of employment.  Grantee will not be eligible to receive any bonus, incentive compensation or paid time off.  Grantee will forfeit any deferred compensation as of the date Grantee provides resignation notice.  As an employee, Grantee may not perform services for another employer during the Notice 
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Exhibit 10.22

Period, and Grantee continues to be bound by all fiduciary duties and policies and procedures.  During the Notice Period, the Employer or the Company may (i) require Grantee to transition duties and responsibilities; or (ii) withdraw any powers vested in, or duties assigned to, Grantee.  The Employer and the Company also retain the right, in their sole discretion, to waive the Notice Period in whole or in part or to place Grantee on paid leave for all or part of the Notice Period.  If the Employer or the Company waives or shortens the Notice Period, Grantee will only receive base salary/draw and benefits through Grantee’s termination date.
Section 2.3 - Restrictive Covenants.
(a) Employee Non-Solicitation.  Grantee agrees that during employment (including any Notice Period) and for a period of one (1) year after the date of the termination of Grantee’s employment for any reason, Grantee will not, without the Company's prior written consent, directly or indirectly:  (a) solicit or induce, or cause others to solicit or induce, any employees of a Cowen Inc. Company (defined below) to leave the Company or in any way modify their relationship with the Company; (b) hire or cause others to hire any employees of a Cowen Inc. Company; or (c) encourage or assist in the hiring process of any Cowen Inc. Company employee or in the modification of any such employee's relationship the Cowen Inc. Company, or cause others to participate, encourage or assist in the hiring process of any employees of a Cowen Inc. Company. 
(b) Non-Competition Obligation.  In order to safeguard the Employer’s and the Company’s Protectable Interests (as defined below), Grantee agrees that if he or she has a Front Office position, during Grantee’s employment and Post-employment Period after Grantee’s employment terminates, Grantee will not, without prior written consent of the Company’s Head of Human Resources, directly or indirectly, on behalf of a Competitor, engage in Competitive Activity (the restriction under this Paragraph, the “Non-competition Obligation”). The length of the post-employment Non-Competition Obligation will be equal to the length of Grantee’s Notice Obligation as of the date of Grantee’s termination of employment (the “Post-employment Period”).  For example, if Grantee has a 3-month Notice Obligation, the length of Grantee’s Post-employment Period is three (3) months.  The post-employment Non-competition Obligation does not apply if Grantee’s employment is terminated by the Company without Cause.  If Grantee fully complies with Grantee’s Notice Obligations, the length of Grantee’s Post-employment Period will be reduced by the number of days Grantee remains on payroll during the Notice Period (for example, if Grantee’s Employer holds Grantee to Grantee’s full Notice Period, Grantee will not have any further Post-employment Period if Grantee fully complies with the Notice Obligations).  Grantee acknowledges that this Non-Competition Obligation is in addition to any client non-solicitation obligation set forth in any offer letter, Terms and Conditions of Employment, or deferred compensation award agreement, and that such agreements are amended to add this Non-Competition Obligation; provided, however, that if Grantee has agreed to a longer post-employment non-competition period in an offer letter or Terms and Conditions of Employment, the longer length of time governs.   If the Grantee has an Employment Agreement in effect as of the Grant Date, then that Employment Agreement governs.
(c) Non-Disclosure of Confidential or Proprietary Information.  The Grantee shall not at any time, whether during Grantee’s employment or following the termination of Grantee’s employment, directly or indirectly, publish, disclose or furnish to any entity, firm, corporation or person, except as otherwise required by law or as required as part of Grantee’s position with the Company, any Confidential or Proprietary Information with respect to any aspect of its operations, business or clients.  "Confidential or Proprietary Information" shall mean any secret, confidential or proprietary information of a Cowen Inc. Company that is not generally known to the public to which you gain access by reason of 
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your employment and includes, but is not limited to, information relating to all principals, officers, and employees, all present or potential clients and investors; work product developed by and research conducted by a Cowen Inc. Company; research reports, models, and notes; business and marketing plans; sales, trading and financial data and strategies; legal and/or regulatory matters; operational costs; pitch books and presentation materials; client and investor lists; client contact and account information; pipelines; investor information; budgets; engagement letters; all current and prospective client confidential information; financial models; and internal procedures, manuals and guidebooks. This Paragraph does not prohibit any disclosure:  (i) made for the purpose of reporting a suspected violation of law or claiming retaliation for reporting a violation of law in confidence to (A) the Equal Employment Opportunity Commission, the National Labor Relations Board, the Occupational Safety and Health Administration, the Securities and Exchange Commission, FINRA, or any other federal, state or local government, agency or commission (“Government Agency”), (B) your attorney, or (C) in a sealed court document; (ii) made in cooperation with an investigation by a Government Agency; or (iii) required pursuant to a subpoena or other legal process; provided, however, with respect to a disclosure under (iii), other than to a Government Agency, that Grantee agrees to give the Company prompt written notice of the disclosure so that the Company may seek a protective order or waive Grantee’s compliance with this paragraph.  Upon termination of Grantee’s employment for any reason, or at any other time requested by the Employer or the Company, Grantee agrees to immediately return all Confidential or Proprietary Information in Grantee’s possession, custody or control, and upon request of the Employer or the Company, agrees to execute an affidavit confirming Grantee’s compliance with this obligation.
(d) Non-Disparagement.  The Grantee shall not at any time, whether during the Grantee’s employment or following any termination thereof, and shall not cause or induce others to, defame or disparage the Company or any Affiliate, or the directors, officers or employees of the Company or any Affiliate.  Grantee agrees not to take any action which is intended, or would reasonably be expected, to harm the reputation of a Cowen Inc. Company, or which would reasonably be expected to lead to negative publicity to a Cowen Inc. Company.
(e) Company Property.  All records, files, memoranda, reports, customer information, client and investor lists, documents, Work Made for Hire (defined below) and equipment relating to the business of the Company or any Affiliate that the Grantee prepares or possesses, or with which the Grantee comes into contact, in either case while the Grantee is an employee of the Company or any Affiliate, shall remain the property of the Company or such Affiliate.  The Grantee agrees that upon the Grantee’s termination of employment for any reason, the Grantee shall provide to the Company and any Affiliate, as applicable, all documents, papers, files, and other material in the Grantee’s possession and under the Grantee’s control that are connected with or derived from the Grantee’s services to the Company or any Affiliate. 
(f) Intellectual Property.  Grantee agrees that the following, without limitation, belongs to and shall be the sole intellectual property of the Company:  all inventions, improvements, products, designs, specifications, original works of authorship, trademarks, service marks, trade dress, discoveries, formulas, algorithms, processes, models, software or computer programs (including any modifications), data processing systems, analyses, data, techniques, trade secrets, know-how, ideas, creations, or work product (regardless of whether it contains Confidential or Proprietary Information or trade secrets), and any applications and registrations thereto, conceived, developed, made or improved on by Grantee: (i) in the course of employment with or work for a Cowen Inc. Company; or (ii) with the use of a Cowen Inc. Company’s time, material or facilities in any way related to or pertaining to or connected with the present or anticipated business, development, work or research of a Cowen Inc. Company (“Work Made for Hire”).  The Company shall exclusively own all rights, title and interest in any Work Made for Hire, and 
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Exhibit 10.22

shall be the author for all purposes under copyright law. Grantee hereby assigns such Work Made for Hire to the Company and agrees, without further compensation or consideration, to immediately take such actions to effect such assignment as may be requested by the Cowen Inc. Company. If any intellectual property is not deemed a Work Made for Hire, or if Grantee, by operation of law, is deemed to obtain any rights to the Work Made for Hire, Grantee shall irrevocably assign to the Company, without further compensation or consideration, your entire right, title, and interest in and to the intellectual property. Grantee further agrees not to impermissibly reproduce, copy, display, distribute, forward, plagiarize, or use (whether in hardcopy or electronically, including via e-mail) any Third Party Copyrighted Materials in violation of any license, subscription agreement, or law.  “Third Party Copyrighted Materials” are copyrighted works, other than those of a Cowen Inc. Company including, but are not limited to, printed articles from publications; electronic articles and reports in online publications; database content; websites; streaming media; musical compositions, mobile apps; online videos; movies; sound recordings, including in digital form such as downloads and streams; images; presentations; training materials; manuals; documentation; computer programs, software programs, and blogs. 
(g) Compliance with Company Policies.  The Grantee agrees to comply fully with the applicable internal policies of the Company and the Employer including, but not limited to, those contained in the Company’s and the Employer’s Employee Handbook, Code of Business Conduct and Ethics, and compliance policies and procedures. The Company’s right to modify these policies does not affect Grantee’s duty to comply with these policies at all times.
(h) Cooperation.  The Grantee agrees to cooperate fully with the Company and the Employer at any time, whether during the Grantee’s employment or following any termination thereof, taking into account the requirements of any subsequent employment by the Grantee, on all matters relating to the Grantee’s employment, which cooperation shall be provided without additional consideration or compensation and shall include, without limitation, being available to serve as a witness and be interviewed and making available any books, records, and other documents within the Grantee’s control, provided, however, that the Grantee need not take any action hereunder that would constitute a violation of law or obligation to any third party (except to the extent such obligation arises due to any action taken by the Grantee with the intention to circumvent the operation of this Section or cause a waiver of attorney-client privilege).  Without limiting the generality of the foregoing, the Grantee shall cooperate fully and truthfully in connection with any (1) past, present, or future suit, action, claim, or other proceeding; (2) inquiry, proceeding, or investigation by or before any governmental authority; (3) arbitration, mediation, or other alternative dispute resolution process, in each case involving the Company, the Employer, or any Affiliates; and (4) internal investigation.  In connection with the Grantee’s providing such cooperation, the Company or the Employer, as applicable, shall reimburse the Grantee for reasonable, pre-approved expenses in connection with such cooperation.
(i) Publicity Consent.  In connection with Grantee’s employment, Grantee grants the Cowen Inc. Companies the right to use his or her name, likeness, image, portrait, voice, and appearance for business purposes including, but not limited to, videos, audio recordings, photographs, publications, advertisements, news releases, websites, and any promotional materials (the “Materials”).   Grantee acknowledges that he or she has no right, title, or interest in and to the Materials, and voluntarily waives the right to inspect or approve the use of the Materials. Grantee releases the Cowen Inc. Companies from all claims under federal, state and local law arising out of the Cowen Inc. Companies’ use of the Materials. 
(j) Grantee Representations Supporting Restrictive Covenants.  Grantee acknowledges and recognizes the highly competitive nature of the Employer’s and the Company’s business, that the 
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Employer will invest time and resources into Grantee’s training and education in furtherance of Grantee’s position, and that by virtue of Grantee’s position, Grantee will have access to the Employer’s and the Company’s Confidential and Proprietary Information and trade secrets (collectively, “Protectable Interests”).  Grantee understands that the restrictive covenants contained in this Agreement may limit Grantee’s ability to earn a livelihood in a position similar to or involving the same activities Grantee perform for the Employer, but Grantee acknowledges that Grantee will receive compensation and other benefits, including training and access to Confidential and Proprietary Information, sufficient to justify these restrictions.  Grantee further acknowledges that given Grantee’s education, skills, and abilities, Grantee does not believe that the restrictive covenants in this Agreement will prevent Grantee from earning a livelihood.  Grantee recognizes that the Company would not award the RSUs and Deferred Cash pursuant to this Agreement if Grantee was not willing to agree to the restrictive covenants contained in this Agreement.
Section 2.4 - Breach/Injunctive Relief.
In the event of a Breach, in addition to being entitled to exercise all rights granted by law, including recovery of damages, the Company and the Employer will be entitled to specific performance of its rights under this Agreement.  The Grantee acknowledges that the Company shall suffer irreparable harm in the event of a Breach or prospective Breach, and that monetary damages would not be adequate relief.  Accordingly, the Company shall be entitled to seek injunctive relief in any federal or state court of competent jurisdiction located in New York County, or in any state in which the Grantee resides.  The Grantee further agrees that the Company and the Employer shall be entitled to recover all costs and expenses (including attorneys’ fees and expenses) incurred in connection with the enforcement of the Company’s rights hereunder including, but not limited to, with respect to a Breach.
Section 2.5 - Offset.
In the event that the Grantee voluntarily terminates employment or if the Grantee’s employment is terminated, for any reason or no reason, the Company may offset, to the fullest extent permitted by law, any amounts of money or other property due to the Company from the Grantee, or advanced or loaned to the Grantee by the Company, from any money or property owed to the Grantee or the Grantee’s estate by the Company as a result of such termination of employment, except to the extent such withholding or offset is not permitted under Section 409A of the Code (“Section 409A”), without the imposition of additional taxes or penalties on the Grantee.
Section 2.6 - Governing Law.
This Agreement shall be governed by and construed in accordance with the laws of the State of New York other than its laws regarding conflicts of law (to the extent that the application of the laws of another jurisdiction would be required thereby).  Grantee consents that any arbitration with respect to this Agreement or Grantee’s employment will be brought in the New York County.  To the extent that Grantee or the Company is permitted to commence a court action, Grantee consents to venue and personal jurisdiction in the state and federal courts in New York County, and Grantee waives any right to a jury trial in any such action.  
Section 2.7 - Interpretation of Agreement.
Subject to the Plan, the Company shall have final authority to interpret and construe this Agreement and to make any and all determinations under them, and its decision shall be binding and 
10

Exhibit 10.22

conclusive upon the Grantee and the Grantee’s legal representative in respect of any questions arising under this Agreement.
Section 2.8 - Notices.
Any notice, other than notice by the Company relating to the Tax Withholding Amount and a resignation notice by Grantee, to be given under the terms of this Agreement shall be in writing and addressed to the Company at 599 Lexington Avenue, New York, New York 10022, Attention: General Counsel, and to the Grantee at the Grantee’s last known home address provided by Grantee to the Company as of the date of notice or at such other address as either party may hereafter designate in writing to the other by like notice.  Notice by the Company relating to the Tax Withholding Amount may be sent to the Grantee via e-mail.  
Section 2.9 - Effect of Agreement/Acknowledgment/Brokerage Account Requirement
Except as otherwise provided hereunder, this Agreement shall be binding upon and shall inure to the benefit of any successor or successors of the Company.  This Agreement shall only become effective and binding on the Company in the event that Grantee shall within thirty (30) days after the Grant Date: (i) return this signed Agreement to the Company’s Human Resources Department; and (ii) open and activate a brokerage account with the Company’s stock plan administrator.
Section 2.10 - Complete Agreement/Severability.
This Agreement may not be amended or modified in any manner (including by waiver) except by an instrument in writing signed by both parties hereto.  The waiver by either party of compliance with any provision of this Agreement shall not operate or be construed as a waiver of any other provision of this Agreement or of any subsequent breach of such party of a provision of this Agreement. Any provision of this Agreement held legally invalid or unenforceable shall not affect the enforceability of the remaining provisions. If any court or arbitrator determines that the Notice Period or restrictive covenants, or any part thereof, are invalid or unenforceable, it is the intention of the parties that these Sections shall not be terminated but shall be deemed to be amended to the extent required to make them valid and enforceable.
Section 2.11 - No Right to Continued Employment.
Nothing in this Agreement shall be deemed to confer on the Grantee any right to continued employment with the Company, Employer or any Affiliate.
Section 2.12 - Section 409A.
The intent of the parties is that payments under this Agreement comply with Section 409A
of the Code, to the extent subject thereto, and accordingly, to the maximum extent permitted, this
Agreement shall be interpreted and administered to be in compliance therewith. Notwithstanding anything contained herein to the contrary, the Grantee shall not be considered to have terminated employment with the Company for purposes of any payments under this Agreement which are subject to Section 409A of the Code until the Grantee has incurred a “separation from service” from the Company within the meaning of Section 409A of the Code. Each amount to be paid under this Agreement shall be construed as a separate identified payment for purposes of Section 409A of the Code. Without limiting the foregoing and notwithstanding anything contained herein to the contrary, to the extent required in order to avoid accelerated taxation and/or tax penalties under Section 409A of the Code, amounts that would otherwise be payable pursuant to this Agreement or any other arrangement between the Grantee and the 
11

Exhibit 10.22

Company during the six (6) month period immediately following the Grantee’s separation from service shall instead be paid on the first business day after the date that is six (6) months following the Grantee’s separation from service (or, if earlier, the Grantee’s date of death). The Company makes no representation
that any or all of the payments described in this Agreement will be exempt from or comply with Section 409A of the Code and makes no undertaking to preclude Section 409A of the Code from applying to any such payment.  In the event that any provision of this Agreement would cause this Agreement fail to comply with Section 409A, to the extent subject thereto, such provision may be deemed null and void, and the Company and the Grantee agree to amend or restructure this Agreement to the extent necessary and appropriate to avoid adverse tax consequences under Section 409A.
 
Section 2.13 - Entire Agreement.
Except as otherwise specified herein, this Agreement constitutes the entire agreement of the parties with respect to the Awards and supersedes in its entirety all prior undertakings, agreements, correspondence, and term sheets of or between the Company and the Grantee with respect to the Awards.  
Section 2.14 - Arbitration.
(a) Any and all disputes with the Company, the Employer, or any Affiliate arising out of or relating to this Agreement or to the Grantee’s employment will be submitted to and resolved exclusively by the Financial Industry Regulatory Association (“FINRA”) in accordance with its rules, unless Grantee is not registered or is not subject to FINRA’s jurisdiction, then by the American Arbitration Association (“AAA”) pursuant to the AAA’s Employment Arbitration Rules and Mediation Procedures.  In the event of arbitration before the AAA, the arbitrator’s fees and the administrative costs associated with holding the arbitration hearing (e.g., set-up and calendaring, room costs, etc.) will be paid by the Company; however, Grantee will be responsible for paying Grantee’s attorney’s fees, witness fees, and all other personal legal expenses related to Grantee’s legal representation.  In agreeing to arbitrate Grantee’s claims, Grantee recognizes that Grantee is waiving Grantee’s right to a trial in court and by a jury.  The arbitration award shall be binding upon Grantee, the Company, the Employer, and any Affiliate and judgment upon the award may be entered in a court of competent jurisdiction.  This arbitration provision applies to, but is not limited to, statutory discrimination, harassment, and retaliation claims under federal, state and local law.  
(b) Grantee agrees to waive any right to bring, participate in, or recover any relief from a class, collective or other representative action against the Company or its Affiliates to the maximum extent permitted by law.  If Grantee is included in a class, collective or other representative action, Grantee will take all steps necessary to opt-out of the action or refrain from opting-in.  A court must decide any issue concerning the validity of this waiver, and an arbitrator does not have the authority to consider it or to allow Grantee to serve as a representative of others in arbitration pursuant to this Section.  If for any reason a court finds this waiver unenforceable, the class, collective or representative claim may only be heard in court and not arbitrated, and to the fullest extent permitted by law, Grantee waives the right to a jury for any such claims.  Grantee retains the right to challenge the validity of this waiver.  
(c) This arbitration provision does not apply to:  (i) a claim for injunctive relief permitted under this Agreement, any Employment Agreement, offer letter, Terms and Conditions of Employment, or deferred compensation award agreement, for which jurisdiction shall be reserved in the federal and/or state courts in New York County, with the parties consenting to personal jurisdiction; (ii) any claim arising under Sarbanes-Oxley; and (iii) claims prohibited by law from being arbitrated.
12

Exhibit 10.22

IN WITNESS WHEREOF, the Company has caused this Agreement to be executed on its behalf by a duly authorized officer, and the Grantee has hereunto set the Grantee’s hand on the date indicated below.

COWEN INC.

Signed:         
        [insert name]              Date
13Exhibit 10-1.

    

    ASSET PURCHASE AGREEMENT

    FOR THE WATER ASSETS

    OF THE TOWN OF FRANKFORD

    THIS ASSET PURCHASE AGREEMENT (“Agreement”) is entered into as of this 27th day of February, 2020 by and between Artesian
      Water Company, Inc., a Delaware corporation (“Buyer”) and the Town of Frankford, a Delaware municipality (“Seller”).

    WHEREAS, Seller is a municipality that provides public water service and fire protection service (the “Municipal Water Utility”)
      within its corporate limits and to certain customers outside its corporate limits (the “Service Area”); and

    WHEREAS, on or about July 28, 2019 Seller publicly issued Request for Proposal No. 2019-01 Provision of Drinking Water Service to Frankford Service Area, concerning
      a potential sale of Seller’s Municipal Water Utility assets, which is incorporated herein by reference;

    WHEREAS, Buyer desires to purchase from Seller, and Seller desires to sell, assign, transfer, convey and deliver to Buyer, substantially all of the operating assets
      of Seller’s water system, including the right to provide water service to Seller’s existing customers, under the terms and conditions set forth herein, free and clear of all Indebtedness and Liens (as hereinafter defined); and

    WHEREAS, in connection with sale of the water system assets, Seller and Buyer shall jointly file an application with the Delaware Public Service Commission (“PSC”) seeking regulatory approval to consummate the Agreement and the transactions contemplated in connection herewith;

    NOW, THEREFORE, in consideration of the representations, warranties, covenants and agreements of the parties hereinafter set forth, as well as other good and
      valuable consideration, the receipt and adequacy of which is hereby acknowledged, Buyer and Seller, intending to be legally bound, do hereby agree as follows:

                             ARTICLE I 

    DEFINITIONS

    Section 1.1 The
        following capitalized terms shall have the following meanings when used in this Agreement:

    (a)  “Indebtedness” means all (i) indebtedness of Seller for borrowed money, including, without limitation, purchase money indebtedness, bonds, debentures, capital or financing leases, equipment operating leases,
        non-trade payables and credit facilities, or obligations for or in respect of the deferred purchase price of goods or services, (ii) obligations of Seller under any guaranty, letter of credit, performance credit or other contract having the effect
        of assuring a creditor against loss, (iii) obligations of Seller under any interest rate, currency or other hedging contract, and (iv) any prepayment penalties, premiums or fees under any of the foregoing items described under causes (i), (ii) or
        (iii).  Prior to Closing, Seller has Indebtedness specifically relating to the Purchased Assets (as hereinafter defined) in the form of Water Infrastructure Advisory Council loans (the “WIAC Loans”), which
        shall be repaid at Closing as provided in Section 2.3 below.

    (b) “Liability” or “Liabilities” means any and all direct or indirect Indebtedness, liability, assessment, claim, loss, damage, deficiency, environmental liability, obligation
        or responsibility, expense (including, without limitation, reasonable attorneys’ fees, court costs, accountants’ fees, environmental consultants’ fees, laboratory costs and other professional fees), Order (as hereinafter defined), settlement
        payments, taxes, fines and penalties, fixed or unfixed, choate or inchoate, liquidated or unliquidated, secured or unsecured, accrued, absolute, actual or potential, contingent or otherwise (including any Liability under any guaranties or letters
        of credit, or with respect to insurance loss accruals).

    (c) “Lien” or “Liens” means, with respect to any Purchased Asset (as hereinafter defined), any lien (including mechanic’s, warehouseman’s, laborer’s and landlord’s liens),
        charge, restriction, claim, hypothecation, pledge, security interest, mortgage, preemptive right, right of first refusal, option, judgment, title defect, right of way, easement, conditional sale or other title retention agreement, or other
        restriction or encumbrance of any kind in respect of or affecting such asset.

    (d) “Order” means any order, judgment, preliminary or permanent injunction, temporary restraining order, award, citation, decree, consent decree or writ.

    ARTICLE II

    SALE AND DELIVERY OF PURCHASED ASSETS

    Section 2.1 Sale
          and Delivery of Purchased Assets.

    At Closing (as hereinafter defined), and subject to the terms and conditions of this Agreement, Seller shall sell, assign, transfer, convey and deliver to Buyer,
      free and clear of all Liens and Indebtedness, all of Seller’s right, title and interest in and to all of the following assets, rights, claims, properties and interests that Seller owns or in which Seller has any right, title or interest, other than
      the Excluded Property as hereinafter defined (each a “Purchased Asset” and collectively the “Purchased Assets”), as follows:

    (a) Municipal
          Water Utility.  Subject to the accounts receivable terms of Section 3.2, all of Seller’s right, title and interest in and to the Municipal Water Utility, including, without limitation, all of Seller’s right to serve the customers now or
        hereafter provided water service in the Service Area and all of Seller’s right to be served by or otherwise interact with all vendors and suppliers with respect to the conduct of the Municipal Water Utility.

    (b) Water Plant,
          Property and Equipment.  All of Seller’s wells, supply facilities, water treatment facilities, water service related equipment, water transmission and distribution mains, lines and conduits, hydrants, services, meters and related
        appurtenances from the mains to the meter pit at each service location (collectively, the “Water Plant”) on an “as is” basis.  The Purchased Assets shall not include the meter pit or any on-site water
        facilities after the meter at any service location (the “Excluded Property”).

    (c) Real Property. 
        The two (2) tax parcels upon which Seller’s water treatment and storage facilities are constructed, known as Tax Parcel Nos. 433-6.18-49.00  and 433-6.18-50.02, together with access or use of any other real property in the Service Area (including
        via easements granted by deeds or other instruments) that relates to the Water Plant (collectively, the “Real Property”).  A map reflecting the location of the principal Purchased Assets and the parameters of
        the Service Area is attached hereto and incorporated herein as Exhibit A.

    (d) Assumed
          Contracts.  All instruments, documents, contracts, agreements, arrangements, commitments, bids, licenses and any other contract rights (whether written or oral) (collectively, “Assumed Contracts”) of
        Seller existing on the date of Closing and relating to the Municipal Water Utility and/or Water Plant.

    (e) Easements. 
        To the extent assignable, all of Seller’s rights to access or use any real property or fixtures (including by license or easement) directly or indirectly used in connection with the Municipal Water Utility and/or the Water Plant.

    (f) Permits. 
        All approvals, consents, licenses, permits, waivers, certificates of public convenience and necessity, or other authorizations issued, granted, given, applied for at the time of Closing or otherwise made available by or under the authority of any
        governmental authority (collectively, “Permits”) for the ownership or operation of the Municipal Water Utility and/or Water Plant, to the extent such Permits are assignable.

    Section 2.2 Liabilities.

    (a) Liabilities
          Assumed by Buyer.  At Closing, Buyer shall assume Liability for and agree to pay, perform and discharge all of the following (collectively, the “Assumed Liabilities”):

    
      	
              (i)

            	
              All obligations and responsibilities to provide water service to the Service Area;

            

    

    
      	
              (ii)

            	
              All accounts payable and trade payables first accruing from and after Closing with respect to the provision of water service to the Service Area;

            

    

    
      	
              (iii)

            	
              The Assumed Contracts with respect to all periods from and after Closing, but shall not assume any Liability arising from Seller’s performance or
                non-performance under any Assumed Contracts at any time prior to Closing, whether asserted before or after Closing;

            

    

    
      	
              (iv)

            	
              All Liabilities with respect to taxes first accruing immediately after Closing and which are incurred in connection with Buyer’s ownership or operation of
                the Purchased Assets;

            

    

    
      	
              (v)

            	
              All Liabilities arising out of ownership and/or operation of the Purchased Assets subsequent to Closing; and

            

    

    
      	
              (vi)

            	
              All sales and use, transfer-related taxes, stamp, real property recordation fees or taxes and all other fees and/or costs associated with the transfer of
                title of the Purchased Assets from Seller to Buyer.

            

    

    (b) Liabilities
          Retained by Seller.  Except for the Assumed Liabilities, Buyer shall not assume, and shall not be deemed to have assumed through anything contained in this Agreement or otherwise, any Indebtedness, Liabilities or Liens of Seller whatsoever
        (the “Excluded Liabilities”).  Without limiting the generality of the foregoing, Buyer shall not assume, and shall not be deemed by anything contained in this Agreement or otherwise to have assumed the
        following Excluded Liabilities:

    
      	
              (i)

            	
              Liabilities and obligations of Seller set forth in this Agreement;

            

    

    
      	
              (ii)

            	
              Liabilities arising out of ownership or operation of the Municipal Water Utility or the Purchased Assets prior to Closing;

            

    

    
      	
              (iii)

            	
              Liabilities or demands for any unclaimed property relating to the Municipal Water Utility or the Purchased Assets that is in Seller’s possession, custody
                or control;

            

    

    
      	
              (iv)

            	
              Liabilities or demands arising out of any litigation (whether civil or criminal), arbitration, mediation, administrative proceeding, audit or
                investigation, or threatened litigation or proceedings, relating to any period ending at or prior to Closing;

            

    

    
      	
              (v)

            	
              Liabilities or demands arising out of any work or contract of Seller that were to be performed by Seller at or prior to Closing, including, without
                limitation, any warranty claims relating thereto;

            

    

    
      	
              (vi)

            	
              Liabilities or demands, including, without limitation, for any interest, penalties, late charges, prepayment charges or termination fees relating to any
                Indebtedness outstanding as of Closing, or resulting from cancellation of such Indebtedness,  it being understood that Buyer shall pay all Liabilities relating to the WIAC Loans as part of the Purchase Price at Closing as provided herein if
                the WIAC Loans have not been cancelled;

            

    

    
      	
              (vii)

            	
              any other Liens, Liabilities or Indebtedness of Seller that are not specifically enumerated above, including, without limitation, the WIAC Loans, it being
                understood that Seller shall determine the amount necessary to pay off the WIAC Loans at Closing.

            

    

    Section 2.3 Purchase
          Price.

    (a) Purchase Price
          for the Purchased Assets.  In consideration of the sale, assignment, transfer, conveyance and delivery of the Purchased Assets by Seller to Buyer and in reliance on the representations, warranties, covenants and agreements made by Seller in
        this Agreement, at the Closing Buyer shall pay Seller the sum of Three Million Six Hundred Thousand and 00/100 Dollars ($3,600,000.00) (“Cash Purchase Price”) as set forth in Section 3.3(b) below.

    (b) Payment of the
          Purchase Price for the Purchased Assets.  No later than Monday, March 16, 2020 Seller shall deliver to Buyer (a) a statement from the State of Delaware on State letterhead setting forth the payoff amount of the WIAC Loans as of March 19, 2020
        and the wire payment instructions for making the payoff payment to the State, and (b) wire payment instructions for payment to Seller of the remainder of the Cash Purchase Price.

    (c) Proration. 
        The parties shall make customary proration with respect to any personal or real property taxes, and power or other utility charges as of the Closing date.

    (d) Allocation of
          Purchase Price.  Buyer and Seller agree to allocate the Cash Purchase Price (and all other capitalizable costs) among the Purchased Assets for all purposes (including financial, accounting and tax purposes) in accordance with an allocation
        schedule to be agreed upon by Buyer and Seller prior to Closing.  Buyer and Seller shall file all tax returns, reports and other documents, including an asset acquisition statement on Form 8594, required by any competent taxing authority in a
        timely manner consistent with the allocation set forth on such agreed schedule.

                              ARTICLE III 

        CLOSING

    Section 3.1 Closing.

    The closing of the transactions contemplated by this Agreement (the “Closing”) is contingent upon obtaining regulatory
      approval from the PSC, which the parties anticipate will occur on March 18, 2020.  The Closing on the purchase of the Purchased Assets shall take place at Seller’s offices located at 5 Main Street, Frankford, Delaware 19945 at 10:00 a.m. on Thursday,
      March 19, 2020, unless another location, date or time is otherwise mutually agreed to by Buyer and Seller.

    Section 3.2 Municipal
          Water Utility Accounts Receivable at Closing.

    On the date of Closing Seller shall, with the assistance of Buyer as Seller reasonably requests, read the meters of all Municipal Water Utility customers.  Seller
      shall bill customers for all accrued water charges as of the date of Closing and Seller shall retain all such accounts receivable and be responsible for the collection thereof.

    Section 3.3 Closing
          Deliveries.

    (a) At Closing,
        Seller shall deliver or cause to be delivered to Buyer each of the following:

    
      	
              (i)

            	
              the Purchased Assets; and

            

    

    
      	
              (ii)

            	
              an easement in substantially the same form attached hereto as Exhibit B, which is incorporated herein by reference, duly executed in triplicate, granting
                Buyer rights in connection with its provision of water service relating to rights-of-way owned by Seller (the “Easement”); and

            

    

    
      	
              (iii)

            	
              duly executed duplicate originals of a Bill of Sale and General Assignment in substantially the same form attached hereto and incorporated herein as
                Exhibit C (the “Bill of Sale”); and

            

    

    
      	
              (iv)

            	
              executed copies of deeds and related transfer documents for the two (2) tax parcels that are part of the Purchased Assets; and

            

    

    
      	
              (v)

            	
              to the extent Seller has not delivered them to Buyer prior to Closing, such records relating to the Municipal Water Utility and/or the Purchased Assets,
                such as Permits, certificates of title duly endorsed for transfer, maintenance records, equipment warranties, and customer account information, as are necessary or proper to facilitate the transactions contemplated hereby, Buyer’s ownership
                of the Purchased Assets, or Buyer’s subsequent provision of water service to the Service Area; and

            

    

    
      	
              (vi)

            	
              a correct and complete list of Seller’s Municipal Water Utility customers as of Closing.

            

    

    (b) At Closing, Buyer
        shall deliver or cause to be delivered to Seller each of the following:

    
      	
              (i)

            	
              duly executed triplicate originals of the Easement; and

            

    

    
      	
              (ii)

            	
              duly executed duplicate originals of the Bill of Sale.

            

    

    (c) During Closing,
        Buyer shall payoff the WIAC Loans in the amount identified by the State of Delaware using the wire payment instructions provided by the State, and then Buyer shall pay the remainder of the Cash Purchase Price to Seller using the wire payment
        instructions provided by Seller.

                        ARTICLE IV 

        REPRESENTATIONS AND WARRANTIES OF SELLER

    Seller hereby represents and warrants to Buyer that each of the following representations and warranties are, as of the date hereof, and as of the Closing date will
      be, true and correct:

    Section 4.1 Authority
          and Validity.

    Seller’s execution and delivery of this Agreement, performance by Seller hereunder, and the consummation by Seller of the transactions contemplated hereby have been
      duly and validly authorized by all required action by or on behalf of Seller.  This Agreement has been duly and validly executed and delivered by Seller, and constitutes valid and legally binding obligations of Seller that are enforceable against
      Seller in accordance with its terms, except as the same may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws now or hereafter in effect relating to the enforcement of creditors’ rights generally or by
      principles governing the availability of equitable remedies.

    Section 4.2 No
          Conflict.

    Neither the execution and delivery of this Agreement nor the carrying out of any of the transactions contemplated hereby will result in any:  (a) violation,
      termination or modification of, or be in conflict with, Seller's powers or authority under applicable laws; (b) breach of, or constitute a default (or with notice, lapse of time or both would become a default) under, or give to others any rights of
      termination, amendment, acceleration or cancellation, or result in the creation of any Lien upon any of its properties or assets pursuant to any Permit or any contract to which Seller is a party or by which it or any of the Purchased Assets are bound
      or affected, or (c) violation of, or be in conflict with, any law or Permit applicable to Seller or by which the Purchased Assets are bound or affected.

    Section 4.3 Title
          to Assets.

    The Purchased Assets constitute all of Seller’s assets, properties and rights (in each case whether real or personal, tangible or intangible), other than the
      Excluded Property, necessary for Buyer to conduct the Municipal Water Utility after Closing.  Title to the Water Plant and all the Purchased Assets shall be conveyed to Buyer at Closing free and clear of all Indebtedness, Liens and Liabilities. 
      Except as otherwise stated herein, Seller has good and marketable title to, or a valid license to use, all of the Purchased Assets (in each case whether real or personal, tangible or intangible) used by Seller in the Municipal Water Utility or
      located on any property owned or used by Seller, free and clear of all Liens and defects of title.  Seller specifically warrants and represents that, except as otherwise identified herein and set for repayment as part of Closing in accordance with
      the terms hereof, no Liens or Indebtedness exist relating to the Purchased Assets other than current, ordinary monthly accruals such as the current month’s electric bill.  Except as previously disclosed in Seller’s publicly-issued Request for
      Proposals regarding the sale of the Municipal Water Utility, all of the Water Plant is in good condition and repair, ordinary wear and tear excepted, and has been maintained and repaired in a good and workmanlike manner in accordance with industry
      standards.

    Section 4.4 Litigation.

    There are no outstanding Orders of any governmental authority involving the Purchased Assets or the Municipal Water Utility.  There is no litigation (civil or
      criminal) and there are no other actions, suits, arbitrations, mediations, administrative proceedings, audits or investigations, whether or not the defense thereof or Liabilities in respect thereof are covered by insurance (collectively, “Claims”), pending or, to Seller’s knowledge, threatened against, or involving the Purchased Assets or the Municipal Water Utility.

    Section 4.5 Environmental.

    (a) None of the real
        property relating to the Purchased Assets or the Easement is or has been listed on the National Priorities List, the Comprehensive Environmental Response, Compensation, Liability Information System (“CERCLIS”)
        or any similar state list, or is or has been the subject of any “Superfund” evaluation or investigation, or any other investigation or proceeding of any governmental authority or unaffiliated third party or of Seller evaluating whether any remedial
        action is necessary to respond to any release of any hazardous substance, pollutant or contaminant in connection with such real property.

    (b) Seller has
        received no notice, written or otherwise, which remains outstanding or unresolved, to the effect that the Water Plant is not being operated in compliance in all material respects with all applicable laws concerning the protection of public health,
        public safety or the environment (“Environmental Laws”).  Seller has received no notice, written or otherwise, which remains outstanding or unresolved, (i) (A) alleging that Seller or any of its agents is
        liable under any Environmental Law, or (B) ordering Seller or any of its agents to remedy or recommending that Seller or any of agents remediate, any environmental damage to any real property or modify or upgrade its Water Plant to comply with
        Environmental Laws, and (ii) to Seller’s knowledge, no such claims or notices are threatened or pending.

    (c)  There has been
        no violation of Environmental Laws that remain unremedied or unresolved respecting the release or threatened release of any hazardous substance, pollutant or contaminant to any soil, groundwater, surface water, building component, wastewater, air
        or other media on or from any real property relating to the Purchased Assets or the Easement during the ownership, occupation or use of such real property by Seller or any of its agents.

    (d) There are no and
        have not been any underground storage tanks, underground piping (except for water or sewer), or polychlorinated biphenyls used, stored, treated or disposed of at any real property relating to the Purchased Assets or the Easement.

    Section 4.6 Unclaimed
          Property. 

    Seller has no unpaid unclaimed property Liability relating to the Municipal Water Utility with respect to any taxable period ending on or before the Closing date
      for which Buyer would be liable or to which the Purchased Assets would be subject.

    Section 4.7    Compliance
          with Laws.

    The ownership and operation of the Purchased Assets and the operation of the Municipal Water Utility as it is currently conducted do not violate or infringe any law
      in any material respect.  Seller has not received written notice (or, to the Seller’s knowledge, oral notice) of any violation by Seller of any law applicable to the operation of the Municipal Water Utility as currently conducted or the Purchased
      Assets as currently operated.  Seller has timely paid all applicable fees, including registration fees and maintenance fees, required by any governmental authority, to maintain Permits in good standing.

    Section 4.8 No
          Brokers.

    Neither Seller, nor any representative or other person acting on behalf of Seller, has agreed to pay a commission, finder’s or investment banking fee, or similar
      payment in connection with this Agreement or any matter related hereto to any person, nor has any such person taken any action on which a claim for such a payment could be based, other than payments for which Buyer will have no Liability or
      obligation.

    Section 4.9 Disclosure.

    All agreements, schedules, exhibits, certificates and reports furnished or to be furnished to Buyer by or on behalf of Seller in connection with this Agreement or
      the transactions contemplated hereby are true, complete and accurate in all material respects.  None of the representations and warranties set forth in this Agreement, taken as a whole, contain any untrue statement of a material fact or omit to state
      a material fact necessary to make the statements contained herein or therein not misleading.

                                                                                                                                   ARTICLE V 
    REPRESENTATIONS AND WARRANTIES OF BUYER

    Buyer hereby represents and warrants to Seller that the following representations and warranties are, as of the date hereof, and as of the Closing date will be,
      true and correct:

    Section 5.1 Organization
          and Good Standing.

    Buyer is a corporation duly organized, validly existing and in good standing under the applicable laws of the State of Delaware.  Buyer has full corporate power and
      authority to own its properties and carry on its business as it is now being conducted.

    Section 5.2 Authority
          and Validity.

    Buyer’s execution and delivery of this Agreement, performance by Buyer hereunder, and the consummation by Buyer of the transactions contemplated hereby have been
      duly and validly authorized by all required corporate action by or on behalf of Buyer.  This Agreement has been duly and validly executed and delivered by Buyer, and constitutes valid and binding obligations of Buyer that are enforceable against
      Buyer in accordance with its terms, except as the same may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws now or hereafter in effect relating to the enforcement of creditors’ rights generally or by
      principles governing the availability of equitable remedies.

    Section 5.3 No
          Violation.

    There is no legal action, proceeding or investigation pending or, to the knowledge of Buyer, threatened against Buyer, nor is there any judgment outstanding against
      Buyer or to which Buyer is subject or bound, that materially adversely affects the ability of Buyer to consummate any of the transactions contemplated hereby.

    Section 5.4 No
          Brokers.

    Neither Buyer nor any person acting on behalf of Buyer has agreed to pay a commission, finder’s fee, investment banking fee or similar payment in connection with
      this Agreement or any matter relating hereto, nor has Buyer taken any action on which a claim for such a payment could be based.

    Section 5.5 Disclosure.

    None of the representations and warranties set forth in this Agreement furnished by Buyer to Seller pursuant hereto, taken as a whole, contain any untrue statement
      of a material fact or omit to state a material fact necessary to make the statements contained herein or therein not misleading.

    ARTICLE VI 

        PRE-CLOSING COVENANTS

    During the period from the date of this Agreement through and including the Closing date:

    Section 6.1 Seller’s
          Conduct of the Municipal Water Utility Pending Closing.

    Except as may be first consented to by Buyer in writing, during the period from the date of this Agreement through and including the Closing date, Seller shall
      conduct the Municipal Water Utility and operate the Purchased Assets according to its ordinary and usual course of business, preserve intact its Municipal Water Utility and the Purchased Assets, and keep available the services of its employees and
      independent contractors.  Seller will not sell, lease, transfer, assign, convey, hypothecate, encumber or make any dividend or distribution of any Purchased Assets, will not amend any unclaimed property filing relating to the Municipal Water Utility,
      and will otherwise maintain satisfactory relationships with respect to the Municipal Water Utility with all relevant governmental authorities, suppliers, agents, customers, and others having business relationships with Seller.  In addition, Seller
      shall promptly notify Buyer in writing of any notice or other communication that it receives (written or oral) respecting any litigation, regulatory proceeding, or audit involving or affecting Seller.  Without limiting the foregoing, Seller, except
      as may be first consented to by Buyer in writing, shall not:

    (a) enter into any
        contract other than with customers or suppliers in the ordinary course of business substantially as conducted heretofore;

    (b) cause any
        material adverse change, including performing or not performing any action, the performance or non-performance of which would reasonably be expected to result in a material adverse change;

    (c) make any loan or
        advance other than for services provided to customers on credit in the ordinary course of business consistent with past practice;

    (d) (i) incur any
        Indebtedness relating to the Purchased Assets, except expenses and current Liabilities incurred in connection with or for services rendered or goods supplied in the ordinary course of business, or obligations or Liabilities incurred by virtue of
        the execution of this Agreement, or (ii) create any Lien on any Purchased Assets; or

    (e) change the
        accounting principles, methods or practices (including without limitation any change in depreciation or amortization policies or rates) utilized by Seller involving or affecting the Purchased Assets or the ownership or operation thereof; or

    (f) make any capital
        expenditure or commitment therefor.

    Section 6.2 2019
          Consumer Confidence Report.

    Seller and its agents shall prepare the Consumer Confidence Report (“CCR”) for the Municipal Water Utility for calendar year
      2019 and provide it to all necessary governmental authorities and customers.

    Section 6.3 Removal
          of Chemicals.

    Seller shall remove and dispose of all chemicals from Tax Parcel No. 433-6.18-49.00 in accordance with applicable laws and regulations.  If this has not occurred
      prior to the scheduled Closing date, Closing shall be rescheduled.

    Section 6.4 Access;
          Cooperation.

    Upon reasonable prior notice, Seller shall give Buyer and its representatives such access to Seller’s Purchased Assets, records, customers and suppliers during
      regular business hours as may be reasonably requested by Buyer, including with respect to have a Phase I environmental assessment undertaken for those tax parcels that are Purchased Assets.  Seller and its representatives will also cooperate with
      Buyer and its representatives, including Buyer’s auditors and counsel, in the preparation of any documents or other materials required in connection with the transactions contemplated by this Agreement, including with respect to obtaining all
      necessary regulatory approvals from the PSC.  In addition, Seller and Buyer shall use their respective reasonable good faith efforts to satisfy all conditions to Closing and all other matters relating to the consummation of the transactions
      contemplated by this Agreement.  Seller and Buyer shall cooperate with each other in connection with any filings with any governmental entity with authority over the parties or the transactions contemplated by this Agreement and shall use their
      reasonable good faith efforts to furnish to each other all information required for any such filing to be made with any such governmental authority in connection with the transactions contemplated by this Agreement.

                          ARTICLE VII 

        POST-CLOSING COVENANTS

    Section 7.1 Remittance
          of Unclaimed Property.

      From and after Closing through and including the date that is the seventh (7th) anniversary of the Closing, Seller and Buyer shall cooperate fully with each other
      and make available or cause to be made available to each other in a timely fashion such data relating to taxes, prior tax returns, filings with the Internal Revenue Service or other governmental authorities, unclaimed property filings, and other
      information as may be reasonably requested for the preparation by Buyer or Seller of any tax returns or other filings with the Internal Revenue Service or other governmental authority.

    Section 7.2 2019
          CCR.

    If Seller has not completed and provided to all necessary governmental authorities and customers the CCR for 2019 prior to Closing, Seller and its agents shall do
      so after Closing.

    Section 7.3 Ordinance.

    Seller shall, no later than sixty (60) days after Closing, enact an Ordinance authorizing Buyer to construct and maintain a water system within the town that
      satisfies 9 Del. C. § 6703.

    Section 7.4 Access
          to Books and Records.

    From and after Closing, Seller shall give Buyer and its agents such access to Seller’s books and records relating to the Purchased Assets that pertain to the period
      prior to and ending at Closing as Buyer shall reasonably request, as necessary or appropriate for Buyer to prepare any tax filings or defend or prosecute any litigation or other proceeding.  Seller shall maintain its books and records relating to the
      period during which it owned the Purchased Assets for at least seven (7) years after Closing, or such other period as mandated by applicable law.  From and after Closing, Buyer shall give Seller and its agents such access to Buyer’s books and records
      relating to the Purchased Assets that pertain to the period prior to and ending at Closing as Seller shall reasonably request, as necessary or appropriate for Seller to prepare any tax filings or defend or prosecute any litigation or other
      proceeding.  Buyer shall maintain such books and records for a period of at least seven (7) years after Closing, or such other period as mandated by applicable law.

    Section 7.5 Rate
          Structure.

    After Closing and until such time as Buyer interconnects the Purchased Assets to Buyer’s regional water utility system, Buyer shall continue to assess water charges
      in the Service Area based upon Seller’s Municipal Water Utility rates as of Closing.  During that period Buyer, shall have the option of converting billing for the Service Area to monthly invoicing, rather than Seller’s current system of Municipal
      Water Utility billing.  Promptly upon interconnecting the Purchased Assets to Buyer’s regional water utility system, Buyer shall take all necessary and appropriate steps and seek all necessary regulatory approvals to convert water and fire protection
      rates in the Service Area to those that generally apply per Buyer’s tariff in the State of Delaware.

    Section 7.6 Continued
          Cooperation.

    At any time and from time to time after Closing, without further consideration (but at Buyer’s cost of preparation and filing) Seller shall promptly execute and
      deliver such confirmatory instruments of sale, transfer, conveyance, assignment and delivery, and take such other reasonable actions, as Buyer may reasonably request to transfer, convey and assign to Buyer, and to confirm Buyer’s right, title and
      interest in and to, each and all of the Purchased Assets, to put Buyer in actual possession and operating control thereof, to assist Buyer in exercising all rights with respect thereto, and to carry out the purposes and intent of this Agreement.

     

    

                                           ARTICLE VIII 

                                       INDEMNIFICATION
    Section 8.1 Indemnification.

    The representations, warranties, covenants and agreements made by the parties in this Agreement shall survive the Closing, and shall continue in full force and
      effect until the date on which the statute of limitations otherwise applicable to such claims expires.  The parties each agree to indemnify, defend and hold harmless the other party, including the other party’s affiliates, directors, officers,
      agents, employees, contractors, subcontractors, successors and assigns, from and against any and all claims, counterclaims, actions, proceedings, suits, losses, debts, demands, judgments, liens, costs and liabilities, including reasonable attorneys’
      fees and expert witness fees, arising out of or in any way relating to any breach of the indemnifying party’s representations and warranties.  Without limiting the foregoing, Seller indemnifies Buyer and shall hold Buyer harmless for all defects in
      title and all Liens, encumbrances, Liabilities, Indebtedness, security interests and claims of any nature relating to the Purchased Assets existing as of Closing, or that arise after Closing and relate to the period prior to the transfer of title to
      Buyer, and Seller shall bear all costs and expenses, including attorneys’ fees, necessary to cure any such defects in title and to remove any such Liens, encumbrances, Liabilities, Indebtedness security interests and/or claims.

    ARTICLE IX

      GENERAL PROVISIONS

    Section 9.1 PSC
          Approval.

    Notwithstanding anything to the contrary in this Agreement, Buyer shall not be liable to Seller for any failure to perform any obligations hereunder in the
      event the PSC refuses to grant Buyer any necessary regulatory approval relating to this Agreement or the transactions contemplated in connection herewith.

    Section 9.2 Expenses.

    The parties shall bear their respective expenses incurred in connection with the preparation, execution and performance of this Agreement and the consummation of
      the transactions contemplated hereby, including, without limitation, all fees and expenses of their respective representatives and all fees, expenses and costs for obtaining any required consents.

    Section 9.3 Successors
          and Assigns; Third Party Beneficiaries.

    This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective legal representatives, successors, heirs, executors
      and assigns; provided, however, that this Agreement and all rights and obligations hereunder may not be assigned or transferred without the prior
      written consent of the other party hereto, except that Buyer may assign its rights hereunder to a directly or indirectly wholly-owned subsidiary or affiliate of Buyer.  There are no intended third
      party beneficiaries in connection with this Agreement.

    Section 9.4 Choice
          of Law; Venue.

    This Agreement and the rights of the parties shall be governed by and construed in accordance with the laws of the State of Delaware without consideration of the
      choice of law or conflict of law principles.  Each of the parties hereto irrevocably consents to the service of any process, pleading, notices or other papers by the mailing of copies thereof by certified mail with return receipt requested, to such
      party at such party’s address set forth herein, or by any other method provided or permitted under the laws of the State of Delaware.  Each party hereby irrevocably submits to the jurisdiction of any federal or state court located in the State of
      Delaware (and any appellate court therefrom) with respect to any action or proceeding arising out of or relating to this Agreement.  Each party hereby irrevocably and unconditionally waives and agrees not to plead, to the fullest extent provided by
      law, any objection it may have to venue and the defense of an inconvenient forum to the maintenance of such action or proceeding in Delaware courts.

    Section 9.5 Waiver
          of Jury Trial.

    EACH PARTY HERETO HEREBY KNOWINGLY AND VOLUNTARILY IRREVOCABLY WAIVES, AFTER CONSULTATION WITH COUNSEL, ALL RIGHT TO TRIAL BY JURY IN ANY PROCEEDING (WHETHER BASED
      IN CONTRACT, TORT, EQUITY OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY TRANSACTION OR AGREEMENT CONTEMPLATED HEREBY, OR THE ACTIONS OF ANY PARTY HERETO IN THE NEGOTIATION, PERFORMANCE OR ENFORCEMENT HEREOF.

    Section 9.6   Notices.

    Unless otherwise provided in this Agreement, any notice required or permitted under this Agreement shall be given in writing and addressed to the party to be
      notified as indicated below, or at such other addresses as the parties may designate from time to time by written notice to the other party:

    If to Buyer:

    Artesian Water Company, Inc.

    Attention:  Karl G. Randall, General Counsel

    664 Churchmans Road

    Newark, Delaware 19702

    If to Seller:

    Town of Frankford

    Attention: Joanne Bacon, President of the Town Council

    5 Main Street

    Frankford, Delaware 19945

    With a copy to:

    Scott E. Chambers, Esquire

    Schmittinger & Rodriguez, P.A.

    414 State Street

    Dover, Delaware 19901

    Section 9.7 Severability.

    If any portion of this Agreement shall be held invalid, illegal or unenforceable by a court of competent jurisdiction, that portion shall, to the extent possible,
      be modified in such manner as to be valid, legal and enforceable, provided any such modification shall as nearly as possible retain the intent of the parties, and if such modification is not possible, such portion shall be severed from this
      Agreement.  In either case, the remainder of this Agreement shall be interpreted as if such provision were so modified or excluded, as the case may be, and shall be enforceable in accordance with its terms.

    Section 9.8 Entire
          Agreement.

    This Agreement constitutes the entire agreement among the parties with respect to the subject matter hereof and supersedes all prior understandings and agreements,
      whether written or oral.

    Section 9.9 Construction.

     The parties have participated jointly in the negotiation and drafting of this Agreement.  In the event an ambiguity or question of intent or interpretation arises,
      this Agreement shall be construed as if drafted jointly by the parties, and no presumption or burden of proof shall arise favoring or disfavoring either party by virtue of authorship of any particular portion hereof.  The titles and section headings
      used in this Agreement are for convenience only and are not to be considered in construing or interpreting this Agreement.  The Recitals in this Agreement form a part of this Agreement.

    Section 9.10 Counterparts.

    This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

    Section 9.11 Time
          Is of the Essence.

    The parties hereto agree that time is of the essence with respect to the performance of each party’s respective obligations and commitments under this Agreement.

    IN WITNESS WHEREOF, the parties have executed this Asset Purchase Agreement as of the date first written above.

    

    

    BUYER:

    ATTEST: ARTESIAN WATER COMPANY,
        INC.,

    A Delaware corporation

    

    

    

    

    By:/s/_Joseph A. DiNunzio By:/s/  Nicholle R. Taylor

    Name:  Joseph A. DiNunzio Name: 
        Nicholle R. Taylor

    Title:  Secretary Title: Chief
        Operating Officer

    

    

    

    

    

    

    

    

    SELLER:

    WITNESS/ATTEST: TOWN OF FRANKFORD,

    a Delaware municipality

    

    

    

    

    By:/s/ Greg Welch By:/s/Joanne Bacon

    Name: Greg Welch Name: Joanne Bacon

    Title: Councilman Title: President
        of Town Council

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