Document:

EX-10.1

	Exhibit 10.1 

	
	

	

	November 5, 2012

	 

	
	Thomas B. Michaud

	
	At the address on file with the Company

	 

	Re:  Employment
	Agreement

	

	Dear Tom:

	 

	
	This is your employment agreement (this
	"Agreement") with
	Stifel Financial Corp., a Delaware corporation (the "Company").

	 

	1. Term
	of Your Employment

	
	
	This Agreement is being entered into in connection with the Agreement and
	Plan of Merger, dated November 5, 2012 (the
	"Acquisition Agreement"),
	between the Company and KBW, Inc. (the "Seller").  Your
	employment under this Agreement will begin on the date the merger provided
	for in the Acquisition Agreement becomes effective (your "Start
	Date") and is scheduled to end on the third anniversary of the Start
	Date (your "Scheduled Term").  If
	the Acquisition Agreement terminates for any reason before the merger
	occurs, this Agreement will become void and have no effect.  The Company
	does not traditionally enter into employment agreements with its employees,
	and this Agreement is accordingly not expected to be renewed following the
	Scheduled Term. 
	

	 

	
	2. Your
	Position, Performance and Other Activities

	
	
	(a) New
	KBW.  Beginning
	on the closing of the merger provided for in the Acquisition Agreement,
	the successor entity to the Seller ("New KBW") will
	operate as a separately branded broker-dealer subsidiary of the Company or,
	at the election of the Chief Executive Officer of the Company (the "Company
	CEO"), a separately branded division within the Company's broker
	dealer (in each case with the "KBW" name).
	New KBW's
	businesses will include, at a minimum, the combined equity research, equity
	sales and trading and investment banking operations for financial services
	of the Company and Seller.

	
	
	(b) Position;
	Duties.  You
	will be employed as Chairman and Chief Executive Officer of
	New KBW,
	reporting directly and solely to the Company CEO or, at the election of the
	Company CEO, to a designee of the Company CEO who reports directly to the
	Company CEO.  You will have all of the authorities, duties and
	responsibilities as customary for a chief executive officer of a division or
	material business line, including that all
	New KBW
	employees will report directly or indirectly to you (with such secondary,
	additional reporting lines as may required for purposes of regulatory or
	financial reporting requirements) and that you will determine the allocation
	of annual salaries and bonuses for
	New KBW
	employees in consultation with the Company CEO and/or his designee.  The
	annual salaries and bonuses for
	New KBW
	employees will be managed to a fifty percent (50%) ratio of compensation to
	revenue, excluding for this purpose any benefits, allocated overhead of
	Company administrative expenses and your compensation.  The Board of
	Directors of the Company (the "Board")
	will take such actions as may be necessary to appoint or elect you as a
	member of the Board (in Class II) effective on your Start Date.  Thereafter,
	during your Scheduled Term, the Board will nominate you for election or
	re-election as a member of the Board as and when your term as a director
	would otherwise expire.

	 

		
			
				

		
			 

		

	
	
	(c) Other
	Activities.  During
	your employment, you will not render any business, commercial or
	professional services other than to the Company or an affiliate.  However,
	you may (1) serve on
	civic or charitable boards or committees, or corporate boards or committees
	with the consent of the Company, (2) manage personal investments or (3)
	deliver lectures, fulfill speaking engagements or
	teach at educational institutions, so long as these activities do not
	significantly interfere with your performance of your responsibilities under
	this Agreement.  It is agreed that the activities that you are conducting at
	the time of this Agreement, and any substitute activities that are similar
	in nature and scope, do not significantly interfere with your
	responsibilities under this Agreement.

	 
	
	3. Your
	Compensation

	
	
	(a) Salary.  You
	will receive a base salary (your "Salary")
	of $250,000 per year.  Your Salary will be paid in accordance with the
	normal practices for Company senior vice presidents (together, your "Peers").

	
	
	(b) Bonus.  You
	will be entitled to receive an annual bonus (your "Bonus")
	for each fiscal year of the Company ending during your employment.  The
	amount of your Bonus will be determined by the Compensation Committee of the
	Board (the "Compensation
	Committee") in its discretion, applied consistently with your Peers;
	provided that your Bonus for 2013 will not be less than the 2013 annual
	bonus awarded to one or more of your Peers designated by the Company CEO and
	mutually agreed to by you.  Your Bonus will be paid in the form consistent
	with your Peers within two and one half months after the end of the
	Company's tax year to which it relates.

	
	
	Notwithstanding the foregoing, you will receive $30,000 per month as a
	non-forfeitable advance of your Bonus, payable on  your Start Date (and
	prorated to reflect a partial month, if applicable) and, thereafter, on the
	first payroll date of each month beginning during your employment.

	
	
	(c) Prior
	Arrangements.  You
	have entered into a retention and waiver letter with the Seller, dated the date
	of this Agreement (your "Waiver
	Letter").  The Company agrees to assume and honor the Waiver Letter
	in accordance with its terms, including the terms of the transition and
	retention equity-related awards provided therein or previously issued
	pursuant thereto (collectively, your
	"Transition Awards").

	
	
	(d) Company
	Stock Award.  Effective
	as of the Merger, the Company will grant you an award of restricted shares
	of the Company's common stock (your "Company
	Retention RSA Grant").  The value of your Company Retention RSA Grant
	on the date it is granted will be $750,000 and the number of shares will be
	calculated using the average of the volume weighted average price of the
	Company's common stock during the ten business days immediately preceding
	(but not including) the date of the Merger.  The Company Retention RSA Grant
	will become transferable in five equal, annual installments beginning on the
	first anniversary of the grant date but will not be forfeited on your
	earlier termination of employment (i.e., there is no "service
	condition").  Instead, your Company Retention RSA Grant will still be
	settled on the scheduled payment date so long as you do not engage in a
	Competitive Activity or Soliciting Activity until that time (as such terms
	are defined in the agreement attached as Annex 3 to your Waiver Letter.  If
	you are terminated by the Company without Cause, your Company Retention RSA
	Grant will be paid on the scheduled payment date regardless of any
	subsequent Competitive Activity or Soliciting Activity.  There will be no
	Company Retention RSA Grant if the Merger is not consummated.  Your Company
	Retention RSA Grant will otherwise be subject to award terms and other
	documents describing the terms of such awards in more detail otherwise
	consistent with restricted stock units granted to your Peers.

	
	
	(e) Long-Term
	Incentive Awards.  Commencing
	in 2013, you will be entitled to receive annual grants of long-term
	incentive awards consistent with the Company's practice for your Peers;
	provided that your
	long-term incentive for 2013 will not be less than the 2013 long-term
	incentive awarded to one or more of your Peers designated by the Company CEO
	and mutually agreed to by you.  Consistent with the Company's customary
	historical practice, such 2013 long-term incentive award will be determined
	in 2014.

	
		
 

	

	
		
 

		
			

	

	
		
 

	

	
	4. Your
	Benefits

	
	
	(a) Employee
	Benefit Plans/Other Executive Compensation Plans/Perquisites.  During
	your employment, you will be entitled to participate in each of the
	Company's (and its affiliates') executive compensation programs, employee
	benefit plans and welfare plans, including plans providing retirement
	benefits or medical, dental, hospitalization, life or disability insurance,
	on a basis that is at least as favorable as that provided to your
	Peers.  For purposes of calculating benefits amounts and determining
	eligibility and vesting (including for early retirement) under any plan or
	program (but not for purposes of benefits accrual under a defined benefit
	pension plan), you will be credited fully for your service with any member
	of the "controlled group of corporations" of which the Seller was a
	member.  In addition, the Company and its affiliates will waive any
	preexisting conditions, waiting periods and actively at work requirements
	under any employee benefit or welfare plan and will cause such plans to
	honor, for purposes of any deductible, co-insurance or maximum out-of-pocket
	expenses provisions, any expenses incurred by you or your beneficiaries
	during the portion of the fiscal year before your Start Date.  Without
	limiting the foregoing, (1) you will be entitled to paid annual vacation on
	a basis that is at least as favorable as that provided to your Peers, (2)
	will be reimbursed for all reasonable business and entertainment expenses
	incurred by you in performing your responsibilities under this Agreement and
	(3) will be provided with office space, facilities, secretarial support and
	other business services consistent with your position on a basis that is at
	least as favorable as that provided to your Peers.

	
	
	(b) Indemnification;
	Advancement of Expenses.  To
	the extent permitted by law, the Company will indemnify you against any
	actual or threatened action, suit or proceeding against you, whether civil,
	criminal, administrative or investigative, arising by reason of your status
	as a director, officer, employee and/or agent of the Company or its
	affiliates during your employment.  In addition, to the extent permitted by
	law, the Company will advance or reimburse any expenses, including
	reasonable attorney's fees, you incur in investigating and defending any
	actual or threatened action, suit or proceeding for which you may be
	entitled to indemnification under this Section 4(b).  However, you agree to
	repay any expenses paid or reimbursed by the Company if it is ultimately
	determined that you are not legally entitled to be indemnified by the
	Company.  If the Company's ability to make any payment contemplated by this
	Section 4(b) depends on an investigation or determination by the Board or
	any board of directors of an affiliate, at your request the Company will use
	its best efforts to cause the investigation to be made (at the Company's
	expense) and to have the relevant board reach a determination as soon as
	reasonably possible.

	 

	
	5. Termination
	of Your Employment

	
	
	(a) No
	Reason Required.  Neither
	you nor the Company is under any obligation to continue your employment
	beyond the Scheduled Term.  In addition, you or the Company may terminate
	your employment early at any time for any reason, or for no reason, subject
	to compliance with Section 5(c).

	
	
	(b) Related
	Definitions.

	
	
	(1) "Cause"
	means any of the following: (A) your continued and willful failure to
	perform substantially your responsibilities to the Company under this
	Agreement, after demand for substantial performance has been given by the
	Board or any officer of the Company to whom you report that specifically
	identifies how you have not substantially performed your responsibilities (but
	not including any failure after the Company gives a Termination Notice
	without Cause or you give a Termination Notice for Good Reason); (B) your
	willful engagement in gross misconduct that results in material and
	demonstrable damage to the business or reputation of the Company; or (C)
	your conviction of, or plea of guilty or
	nolo contendere to,
	a felony.

	
	
	For this definition, (i) no act or omission by you will be "willful" unless
	it is made by you in bad faith or without a reasonable belief that your act
	or omission was in the best interests of the Company and (ii) any act or
	omission by you based on authority given pursuant to a resolution duly
	adopted by the Board or on the advice of counsel for the Company or on the
	instruction of any officer of the Company to whom you report will be deemed
	made in good faith and in the best interests of the Company. In
	addition, if the Company does not give you a Termination Notice within 90
	days after any executive officer of the Company (other than you) has
	knowledge that an event constituting Cause has occurred, the event will no
	longer constitute Cause.

	
	
		
			

	

	
	
	(2) "Good
	Reason" means any of the following:  (A) a material diminution in
	your Salary or Bonus; (B) a material diminution in your authority or
	responsibilities as provided in Section 2(b), including failure to nominate
	you for election and re-election to the Board; (C) the transfer of your
	primary work site to a new primary work site that increases your one-way
	commute to work by more than 25 miles; (D) any material breach of this
	Agreement by the Company; or (E) any purported termination by the Company of
	your employment other than as expressly permitted by this Agreement.

	
	
	If you do not give a Termination Notice within 90 days after you have
	knowledge that an event constituting Good Reason has occurred, the event
	will no longer constitute Good Reason.  In addition, you must give the
	Company notice and 30 days
	to cure the first event constituting Good Reason.

	
	
	(3) "Disability"
	means you are, 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 Company. If the
	Company determines in good faith that your Disability has occurred, it may
	give you a Termination Notice.  If within 30 days of the Termination Notice
	you do not return to full-time performance of your responsibilities, your
	employment will terminate.  If you do return to full-time performance in
	that 30-day period, the Termination Notice will be cancelled for all
	purposes of this Agreement.  Except as provided in this Section 5(b), your
	incapacity due to mental or physical illness or injury will not affect the
	Company's obligations under this Agreement.

	
	
	(c) Advance
	Notice Generally Required.

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

	
	
	(2) You
	and the Company agree to provide 90 days' advance Termination Notice of any
	termination, unless your employment is terminated by the Company for Cause
	or because of your Disability or death.  If you die or become Disabled after
	you provide a valid Termination Notice with Good Reason or the Company
	provides a Termination Notice without Cause, your termination will be
	treated as a termination with Good Reason or without Cause, as applicable,
	effective as of the date of your death or Disability.

	
	
	Following receipt of such
	notice, the Company may, at its sole discretion, choose to either (1) waive
	that notice period (thereby immediately terminating your employment) or (2)
	place you on paid leave, at your then-current salary (but with no
	eligibility for a discretionary bonus), for any or all of the notice
	period.  You also agree that if you provide such notice prior to the first
	day of the 12th month following the closing of the merger contemplated by
	the Acquisition Agreement, the Company may, at its sole discretion, place
	you on paid leave (with no eligibility for a discretionary bonus) through
	the last day of the 14th month following the closing of the merger
	contemplated by the Acquisition Agreement.

	
	
	(d) With
	Good Reason or Without Cause.
	If, during your Scheduled Term, the Company terminates your employment
	without Cause or you terminate your employment for Good Reason:

	
	
	(1) The
	Company will pay the following as of the end of your employment:  (A) your
	accrued but unpaid Salary, (B) your Salary for any accrued but unused
	vacation and (C) any accrued expense reimbursements and other cash
	entitlements (including for accrued expense reimbursement for which
	supporting documentation is submitted within thirty (30) days after
	termination of your employment) (together, your "Accrued
	Compensation").  In addition, the Company will timely pay you any
	amounts and provide you any benefits that are required, or to which you are
	entitled, under any plan, contract or arrangement of the Company (or any
	affiliate) as of the end of your employment (together, the "Other
	Benefits").

	
	
	(2) The
	Company will pay any accrued but unpaid Bonus for the Company's tax year
	ending immediately before the end of your employment (your "Earned
	Bonus").

	 
		
			
				

		
			 

		

	
	
	(3) The
	Company will pay you a lump sum amount of $3,500,000 (your "Severance
	Pay").

	
	
	(4) Your
	Transition Awards, Company Retention RSA Grant and all other equity-based
	compensation (other than stock options) awarded to you by the Company or any
	affiliate will vest and all stock options issued to you by the Company or
	any affiliate will vest and be exercisable until their regularly-scheduled
	expiration date, and in each case any non-competition, non-solicitation or
	other forfeiture provisions will be waived.  The benefits in this
	Section 5(d)(4) are referred to as "Accelerated
	Vesting".

	
	
	(5) For
	a period of thirty-six (36) months following your date of termination or
	such longer period as may be provided by the terms of the appropriate plan,
	program, practice or policy (such applicable period, the "Benefits
	Period"), you, your spouse and your dependents will be provided with
	health care, life insurance and other benefits at least as favorable, and at
	the same cost to the you, your spouse and your dependents, as those that
	would have been provided to you, your spouse and your dependents under
	Section 4(a) of this Agreement if your employment had continued until the
	end of the Benefits Period; provided, however, that the health care benefits
	will be provided during the Benefits Period in such a manner that such
	benefits (and the costs and premiums thereof) are excluded from your income
	for federal income tax purposes (if the Company reasonably determines that
	providing continued coverage under one or more of its health care benefit
	plans could be taxable to you, the Company will provide such benefits at the
	level required hereby through the purchase by the Company of individual
	insurance coverage); provided, further, however, that during any period when
	you are eligible to receive such benefits under another employer-provided
	plan, the benefits provided by the Company under this Section 5(d)(5) may be
	made secondary to those provided under such other plan. The Company will use
	its reasonable best efforts to ensure that, following the end of the
	Benefits Period, you, your spouse and your eligible dependents will be
	eligible to elect continued health coverage pursuant to Section 4980B of the
	Internal Revenue Code of 1986, as amended (the "Code")
	or other applicable law, as if your employment with the Company had
	terminated as of the end of such period.  For purposes of determining
	eligibility (but not the time of commencement of benefits) of you for
	retiree welfare benefits pursuant to the Company's retiree welfare benefit
	plans, if any, you will be considered to have remained employed until the
	end of the Benefits Period and to have retired on the last day of such
	period.

	
	
	(e) For
	Cause or without Good Reason.  If
	the Company terminates your employment for Cause or you terminate your
	employment without Good Reason, the Company will pay only your Accrued
	Compensation and your Other Benefits; however, in connection with any
	termination of your employment without Good Reason, you will remain eligible
	for continued vesting and/or payment of your Transition Awards and all other
	equity-based compensation or stock options awarded by the Company or any
	affiliate, in accordance with the terms of such awards.

	
	
	(f) For
	Your Disability or Death.  If,
	during your Scheduled Term, your employment terminates as a result of your
	death or Disability, the Company will pay your Accrued Compensation, Earned
	Bonus and Accrued Bonus and will provide Accelerated Vesting, your Other
	Benefits and the benefits contemplated by Section 5(d)(5) (substituting
	"eighteen (18) months" for "thirty-six (36) months").

	
	
	(g) Timing.  The
	benefits provided in Section 5 will begin at
	the end of your employment, and any cash payments owed you under this
	Section 5 will be paid in one lump sum 65 days following
	your date of termination.  Notwithstanding the foregoing, the cash lump sum
	payments described in Section 5(d)(3) will only be provided if, at the time
	of your termination, you provide a release of any and all claims you may
	have with respect to the Company (other than the benefits provided in
	Section 5 and the other rights under this Agreement that continue following
	your employment) in a form reasonably acceptable to the Company (but
	containing confirmation that the Company is not aware of claims against you)
	such that you have taken all action necessary for such release to become
	effective and irrevocable no later than 65 days following your date of
	termination.

	
	
		
			

	

	
		
 

	

	
	
	(h) Section
	409A.  This
	Agreement is intended to comply with or be exempt from the requirements of
	Section 409A of the Code ("Section
	409A") with respect to amounts, if any, subject thereto and shall be
	interpreted, construed and performed consistent with such intent.  To the
	extent you would otherwise be entitled to any payment under this Agreement
	or any other plan or arrangement of the Company or any affiliate that
	constitutes "deferred compensation" subject to Section 409A, and that if
	paid during the six months beginning on the date of termination of your
	employment would be subject to the Section 409A additional tax because
	you are a "specified employee" (within the meaning of Section 409A and as
	determined by the Company), (i) such payment will not be made to you and
	instead will be made to a trust in compliance with Rev. Proc. 92-64, but
	only to the extent the use of such trust does not cause adverse tax
	consequences to you under Section 409A, and (ii) such payment, together with
	any earnings on it, will be paid to you on the earlier of the six-month
	anniversary of your date of termination or your death.  Similarly, to the
	extent you would otherwise be entitled to any benefit (other than a payment)
	during the six months beginning on the termination of your employment that
	would be subject to the Section 409A additional tax, the benefit will be
	delayed and will begin being provided (together, if applicable, with an
	adjustment to compensate you for the delay) on the earlier of the six-month
	anniversary of your date of termination or your death. In
	addition, any payment or benefit due upon a termination of your employment
	that represents "deferred compensation" subject to Section 409A shall be
	paid or provided to you only upon a "separation from service" as defined in
	Treas. Reg. § 1.409A-1(h) and your date of termination for purposes of this
	Agreement with respect to such amounts shall be the date of "separation from
	service". 

	
	
	Notwithstanding anything to the contrary in this Agreement or elsewhere, any
	payment or benefit under this Agreement or otherwise that is exempt from
	Section 409A pursuant to Treas. Reg. Section 1.409A-1(b)(9)(v)(A) or (C)
	shall be paid or provided to you only to the extent that the expenses are
	not incurred, or the benefits are not provided, beyond the last day of your
	second taxable year following your taxable year in which the "separation
	from service" occurs; and provided further that such expenses are reimbursed
	no later than the last day of your third taxable year following the taxable
	year in which your "separation from service" occurs.  Except as otherwise
	expressly provided herein, to the extent any expense reimbursement or the
	provision of any in-kind benefit under this Agreement is determined to be
	subject to Section 409A, the amount of any such expenses eligible for
	reimbursement, or the provision of any in-kind benefit, in one calendar year
	shall not affect the expenses eligible for reimbursement in any other
	taxable year (except for any life-time or other aggregate limitation
	applicable to medical expenses), in no event shall any expenses be
	reimbursed after the last day of the calendar year following the calendar
	year in which you incurred such expenses, and in no event shall any right to
	reimbursement or the provision of any in-kind benefit be subject to
	liquidation or exchange for another benefit.

	
	
	6. Effect
	of Excise Tax and Limits on Golden Parachute Payments

	
	
	(a) Contingent
	Reduction of Parachute Payments.  If
	there is a change in ownership or control of the Company that would cause
	any payment, benefit or distribution by the Company or any other person or
	entity to you or for your benefit (whether paid or payable, provided or to
	be provided or distributed or distributable pursuant to the terms of this
	Agreement or otherwise) (each, a "Payment,"
	and collectively, the "Payments")
	to be subject to the excise tax imposed by Section 4999 of the Code (such
	excise tax, together with any interest or penalties incurred by you with
	respect to such excise tax, the "Excise
	Tax"), then you will receive the greatest of the following, whichever
	gives you the highest net after-tax amount (after taking into account
	federal, state, local and social security taxes): (1) the Payments or (2)
	one dollar less than the amount of the Payments that would subject you to
	the Excise Tax (the "Safe
	Harbor Amount").  If a reduction in the Payments is necessary so that
	the Payments equal the Safe Harbor Amount and none of the Payments
	constitutes a "deferral of compensation" within the meaning of and subject
	to Section 409A ("Nonqualified
	Deferred Compensation"), then the reduction shall occur in the manner
	you elect in writing prior to the date of payment.  If any Payment
	constitutes Nonqualified Deferred Compensation or if you fail to elect an
	order, then the Payments to be reduced will be determined in a manner which
	has the least economic cost to you and, to the extent the economic cost is
	equivalent, will be reduced in the inverse order of when payment would have
	been made to you, until the reduction is achieved.

	
	
	(b) Determination
	of the Payments.  Any
	other determination required to be made under this Section 6, including
	whether and when reduction of payments to the Safe Harbor Amount is required
	and the amount of the reduction of the Payments and the assumptions to be
	utilized in arriving at such determination, shall be made by the Accounting
	Firm  which shall provide detailed supporting calculations both to the
	Company and you within fifteen (15) business days of the receipt of notice
	from you that there has been a Payment, or such earlier time as is requested
	by the Company.  All fees and expenses of the Accounting Firm shall be borne
	solely by the Company.  Any determination by the Accounting Firm under this
	Section 6(b) shall be binding upon the Company and you.  You shall cooperate
	with any reasonable requests by the Company in connection with any contests
	or disputes with the Internal Revenue Service in connection with the Excise
	Tax.

	
	
		
			

	

	
		
 

	

	
	
	7. Effect
	on Other Agreements

	
	
	(a) Prior
	Employment Agreements and Severance Rights.  After
	the term of your employment starts, this Agreement will supersede and
	replace any earlier employment agreement and any earlier severance or
	similar rights you may have with any member of the Company, the Seller or
	any of the Seller's affiliates, which shall be terminated and of no further
	force and effect as of such time.

	
	
	(b) Entire
	Agreement.  This
	Agreement is the entire agreement between you and the Company with respect
	to the relationship contemplated by this Agreement (other than your Waiver
	Letter) and, other than as provided in Section 7(a), supersedes and replaces
	any earlier agreement, written or oral, with respect to the subject matter
	of this Agreement.  In entering into this Agreement, no party has relied on
	or made any representation, warranty, inducement, promise or understanding
	that is not in this Agreement.

	
	
	8. Successors

	
	
	(a) Assignment
	by You.  You
	may not assign this Agreement without the Company's consent.  Also, except
	as required by law, your right to receive payments or benefits under this
	Agreement may not be subject to execution, attachment, levy or similar
	process.  Any attempt to effect any of the preceding in violation of this
	Section 8(a), whether voluntary or involuntary, will be void.

	
	
	(b) Assumption
	by any Surviving Company.  Before
	the effectiveness of any merger, consolidation, statutory share exchange or
	similar transaction (including an exchange offer combined with a merger or
	consolidation) involving the Company (a "Reorganization")
	or any sale, lease or other disposition (including by way of a series of
	transactions or by way of merger, consolidation, stock sale or similar
	transaction involving one or more subsidiaries) of all or substantially all
	of the Company's consolidated assets (a "Sale"), the
	Company will cause (1) the Surviving Company to unconditionally assume this
	Agreement in writing and (2) a copy of the assumption to be provided to
	you.  After the Reorganization or Sale, the Surviving Company will be
	treated for all purposes as the Company under this Agreement.  The "Surviving
	Company" means (i) in a Reorganization, the entity resulting from the
	Reorganization or (ii) in a Sale, the entity that has acquired all or
	substantially all of the assets of the Company.  Except as provided in this
	Section 8(b), the Company may not assign this Agreement without your written
	consent.

	
	
	9. General
	Provisions

	
	
	(a) Withholding.  You
	and the Company will treat all payments to you under this Agreement as
	compensation for services.  Accordingly, the Company will withhold from any
	payment any taxes that are required to be withheld under any law, rule or
	regulation.

	
	
	(b) Severability.  If
	any provision of this Agreement is found by any court of competent
	jurisdiction (or legally empowered agency) to be illegal, invalid or
	unenforceable for any reason, then (1) the provision will be amended
	automatically to the minimum extent necessary to cure the illegality or
	invalidity and permit enforcement and (2) the remainder of this Agreement
	will not be affected.

	
	
	(c) No
	Set-off or Mitigation.  Your
	and the Company's respective obligations under this Agreement will not be
	affected by any set-off, counterclaim, recoupment or other right you or the
	Company (or any affiliate) may have against each other or anyone else.  You
	do not need to seek other employment or take any other action to mitigate
	any amounts owed to you under this Agreement, and those amounts will not be
	reduced if you do obtain other employment.

	
		
 

		
			

	

	
		
 

	

	
	
	(d) Notices.  All
	notices, requests, demands and other communications under this Agreement
	must be in writing and will be deemed given (1) on the business day sent,
	when delivered by hand or facsimile transmission (with confirmation) during
	normal business hours, (2) on the business day after the business day sent,
	if delivered by a nationally recognized overnight courier or (3) on the
	third business day after the business day sent if delivered by registered or
	certified mail, return receipt requested, in each case to the following
	address or number (or to such other addresses or numbers as may be specified
	by notice that conforms to this Section 9(d):

 

	
			
				
					
					If to you:

				
	
				
				  	
				
				  	
				
					
					At the address on file with the Company

				
	
				
				  	
				
				  	
				
				  
	
				
					
					If to the Company, to:

				
	
				
				  	
				
				  	
				
					
					Stifel Financial Corp.

				
	
				
				  	
				
				  	
				
					
					1 Financial Plaza

				
	
				
				  	
				
				  	
				
					
					North Broadway

				
	
				
				  	
				
				  	
				
					
					Saint Louis, MO 63102

				
	
				
				  	
				
				  	
				
					
					Attention:  General Counsel

				

	

	 

	
	
	(e) Amendments
	and Waivers.  Any
	provision of this Agreement may be amended or waived but only if the
	amendment or waiver is in writing and signed, in the case of an amendment,
	by you and the Company or, in the case of a waiver, by the party that would
	have benefited from the provision waived.  Except as this Agreement
	otherwise provides, no failure or delay by you or the Company to exercise
	any right or remedy under this Agreement will operate as a waiver, and no
	partial exercise of any right or remedy will preclude any further exercise.

	
	
	(f) Jurisdiction;
	Choice of Forum; Costs.  You
	and the Company irrevocably submit to the exclusive jurisdiction of any
	state or federal court located in the County of New York over any
	controversy or claim arising out of or relating to or concerning this
	Agreement or any aspect of your employment with the Company (together, an "Employment
	Matter").  Both you and the Company (1) acknowledge that the forum
	stated in this Section 9(f) has a reasonable relation to this Agreement and
	to the relationship between you and the Company and that the submission to
	the forum will apply even if the forum chooses to apply non-forum law,
	(2) waive, to the extent permitted by law, any objection to personal
	jurisdiction or to the laying of venue of any action or proceeding covered
	by this Section 9(f) in the forum stated in this Section, (3) agree not to
	commence any such action or proceeding in any forum other than the forum
	stated in this Section 9(f) and (4) agree that, to the extent permitted by
	law, a final and non-appealable judgment in any such action or proceeding in
	any such court will be conclusive and binding on you and the
	Company.  However, nothing in this Agreement precludes you or the Company
	from bringing any action or proceeding in any court for the purpose of
	enforcing the provisions of this Section 9(f).  To the extent permitted by
	law, the Company will pay or reimburse any reasonable expenses, including
	reasonable attorney's fees, you incur as a result of any Employment Matter.

	
	
	(g) Governing
	Law.  This
	Agreement will be governed by and construed in accordance with the law of
	the State of New York applicable to contracts made and to be performed
	entirely within that State.

	
	
	(h) Counterparts.  This
	Agreement may be executed in counterparts, each of which will constitute an
	original and all of which, when taken together, will constitute one
	agreement.

	
		
			
			  

	

	
		
			
			  

		
			

	

	
		
			
			  

	

 
		
			
			 Very truly yours, 
	
			
			 
	
			
				
				STIFEL FINANCIAL CORP.

			
	
			
			 	
			
			 
	
			
			 By:	
			
			 	
			
			 /s/ Ronald J. Kruszewski
	
			
			  	
			
				
				Name:

				
			
			  Ronald J. Kruszewski
	
			
			  	
			
			  	
			
			  
	
			
			  
	
			
				
				Accepted and agreed:

			
	
			
			 	
			
			 
	
			
			 By:	
			
			 	
			
			 /s/ Thomas B. Michaud
	
			
			  	
			
				
				Name:

				
			
			  Thomas B. Michaud
	
			
			  	
			
				
				Date:

				
			
			  November 5, 2012MAG 2012 Q3 EX10.1

EXHIBIT 10.1

MAGNETEK, INC.
AMENDED AND RESTATED
2010 NON-EMPLOYEE DIRECTOR STOCK OPTION PLAN
OCTOBER 31, 2012

1.    Purpose of the Plan. Under this 2010 Non-Employee Director Stock Option Plan (the “Director Plan”) of Magnetek, Inc., a Delaware corporation (the “Company”), options shall be granted to eligible persons, as set forth in Section 4, to purchase shares of the Company's common stock (“Common Stock”). This Director Plan is designed to promote the long-term growth and financial success of the Company by enabling it to attract, retain and motivate such persons by providing for or increasing their interest in the Company. This Plan replaces the Amended and Restated 1997 Non-Employee Director Stock Option Plan of the Company as of January 1, 2008 (the “1997 Plan”).
2.    Effective Dates. This Director Plan originally became effective on April 22, 1997. Options may not be granted subsequent to (a) the maximum number of shares that may be subject to options hereunder have been awarded or (b) termination of this Director Plan by the Board of Directors of the Company (the “Board”), whichever is earlier. 
3.    Plan Operation. To the extent that any questions of interpretation arise hereunder, these shall be resolved by the Board.
4.    Eligible Persons. The persons eligible to receive a grant of non-qualified stock options hereunder are any Director of the Board who on the date of said grant is not an employee of the Company or a subsidiary of the Company (a “Qualifying Director”).
5.    Stock Subject to Director Plan. The maximum number of shares that may be subject to options granted hereunder shall be 1,150,000 shares of Common Stock, subject to adjustments under Section 6. Shares of Common Stock subject to the unexercised portions of any options granted under this Director Plan which expire, terminate or are forfeited or cancelled may again be subject to options under this Director Plan.
6.    Adjustments. In the event that the outstanding shares of Common Stock of the Company are hereafter changed into or exchanged for a different number or kind of shares or other securities of the Company, or of another corporation, by reason of reorganization, merger, consolidation, recapitalization, reclassification, stock split-up, spin-off, stock dividend or combination of shares, appropriate adjustments shall be made in the number and kind of shares: (a) that may be subject to options granted under this Director Plan; (b) as to which options may thereafter be granted or issued under this Director Plan and (c) for which options then outstanding under this Director Plan may thereafter be exercised. Any such adjustments in outstanding options shall be made without changing the aggregate exercise price applicable to the unexercised portions of such options.
7.    Stock Options.
(a)    Upon initial election or appointment of any director to the Board or upon a continuing director becoming a Non-Officer Qualifying Director, such Non-Officer Qualifying Director will receive an option to purchase a number of shares of the Company's Common Stock pursuant to the terms and conditions described in this Section 7. In addition, Non-Officer Qualifying Directors will be automatically granted, on an annual basis, a non-qualified stock option to purchase a number of shares of the Company's Common Stock on the last business day of the Company's fiscal year ending after the initial grant of such Non-Officer Qualifying Director's share option pursuant to this Section 7. The number of shares subject to such option to purchase for the initial award and the annual award shall be determined by the Board. Each option granted pursuant to this Section 7(a) will have a term of ten years and shall become exercisable as follows: options with respect to 50% of the shares one year after the date of grant and options with respect to the remaining 50% of the shares two years after the date of grant.
(b)    The Board may from time to time, in its absolute discretion, grant non-qualified stock options to Qualifying Directors. Each option granted pursuant to this Section 7(b) will have a term of ten years unless otherwise specified by the Board, and the Board shall, in its absolute discretion, determine the exercisability and other provisions of such option.
(c)    The per share exercise price of options granted under this Director Plan will be the fair market value of a share of the Company's Common Stock on the date of grant (the “Fair Market Value”), defined as (i) the mean between the highest and lowest sales prices of a share of the Company's stock on the principal exchange on which shares of the. Company's stock are then trading, if any, on such determination date, or, if shares were not traded on such date, then on the next preceding trading day during which a sale occurred, as such prices are quoted in The Wall Street Journal; or (ii) if such stock is not traded on an exchange but is quoted on NASDAQ or a successor quotation system, (1) the mean between the highest and lowest sales prices (if the stock is then listed as a National Market Issue under the NASD National Market System) or (2) the mean between the closing representative bid and asked prices (in all other cases) for the stock on such determination date as reported by NASDAQ or such successor quotation system; or (iii) if such stock is not 

publicly traded on an exchange and not quoted on NASDAQ or a successor quotation system, the mean between the closing bid and asked prices for the stock, on such determination date, as determined in good faith by the Board; or (iv) if the Company's stock is not publicly traded, the fair market value established by the Board in good faith. The Board shall use such procedures to determine fair market value in compliance with Code Section 409A and the regulations or other guidance issued thereunder.
(d)    If on any date upon which options are to be granted under this Director Plan the number of shares of Common Stock remaining available under the Director Plan are less than the number of shares required for all grants to be made on such date, then options to purchase a proportionate amount of such available number of shares of Common Stock shall be granted to each Qualifying Director.
8.    Documentation of Grants. Awards made under this Director Plan may be evidenced by written agreements or such other appropriate documentation as the Board shall prescribe. The Board need not require the execution of any instrument or acknowledgment of notice of an award under Section 7(a) of this Director Plan, in which case continued service as a Qualifying Director by the respective optionees will constitute agreement to the terms of the award.
9.    Nontransferability. Unless otherwise approved by the Board, options granted under this Director Plan are nontransferable by the optionee otherwise than by will or the laws of descent and distribution, and are exercisable, during the optionee's lifetime, only by the optionee.
10.    Amendment and Termination. The Board may alter, amend, suspend, or terminate this Director Plan, provided that no such action shall deprive any optionee, without his consent, of any option theretofore granted to the optionee pursuant to this Director Plan or of any of his rights under such option and provided further that the provisions of this Director Plan designating persons eligible to participate in the Director Plan and specifying the amount, exercise price and timing of grants under the Director Plan shall not be amended more than once every six months other than to comport with changes in the Internal Revenue Code, the Employee Retirement Income Security Act, or the rules thereunder. Notwithstanding the foregoing, no alteration, amendment, suspension or termination of this Director Plan or any other document evidencing an Award under this Director Plan shall cause all or a part of the payment under any Award to be subject to additional tax under Code Section 409A.
11.    Termination of Directorship. All vested options held by Qualifying Directors as of the date of cessation of service as a director may be exercised by the Qualifying Director or his heirs or legal representatives for one year after such cessation of service.
12.    Merger, Consolidation, Acquisition, Liquidation or Dissolution. Upon or in connection with the merger or consolidation of the Company with or into another corporation, the acquisition by another corporation, person or group of all or substantially all of the Company's assets or 40% or more of the Company's then outstanding voting stock or the liquidation or dissolution of the Company:
(a)    If so provided in the relevant agreement relating to a merger, consolidation, acquisition of assets, liquidation or dissolution, such option shall be either assumed or replaced by a substitute option, as applicable, issued by the successor or any corporation that is a “parent” of the Company within the meaning of Rule 405 under the Securities and Exchange Act of 1933, as amended (the “Securities Act”), resulting from such transaction, without any further action on the part of the Board or the Qualifying Director. 
(b)    If no provision is made as set forth in (a), or in the event of an acquisition of 40% or more of the Company's then outstanding voting stock to which subsection (c) is inapplicable, such option shall become (to the extent not then fully vested) fully exercisable from and after the date which is thirty days prior to the effective date of the transaction and until the normal expiration thereof. 
(c)    In the event of an acquisition of 40% or more the Company's then outstanding voting stock (other than pursuant to a merger resulting in the ownership of all of the Company's outstanding Common Stock by another corporation), if as a result of the transaction the Company's Common Stock will cease to be traded on a national stock exchange, listed as a National Market Issue on the National Market System or quoted on the NASDAQ quotation system, each option which has not been exercised prior to the consummation of the transaction shall be converted automatically into the right to receive, within thirty days of such consummation, an amount in cash equal to the difference between the aggregate exercise price for all shares subject to the option (whether or not then subject to exercise) and the Fair Market Value of such shares on the date which is the last trading date preceding the consummation of such transaction. 
(d)    The foregoing provisions shall have no application to a merger in which (i) the Company is the surviving corporation, (ii) no person or group acquires 40% or more of the Company's outstanding voting stock, and (iii) the shares of the Company's Common Stock outstanding prior to the merger remain outstanding thereafter. 
13.    Change of Control of the Board. If during any period of 12 consecutive months, individuals who at the beginning of such 12-month period constituted the Board (together with any new directors whose election by the Board or whose nomination 

for election by the stockholders of the Company was approved by a vote of a majority of the directors then still in office who were either directors at the beginning of such period or whose election or nomination for election was previously so approved) cease for any reason to constitute a majority of the Board then in office, then all outstanding options shall become (to the extent not then fully vested) fully exercisable from and after the effective date of such change of control of the Board.
14.    Manner of Exercise. All or a portion of an exercisable option shall be deemed exercised upon delivery to the Secretary of the Company at the Company's principal office of all of the following: (i) a written notice of exercise specifying the number of shares to be purchased signed by the Qualifying Director or other person then entitled to exercise the option, (ii) full payment of the exercise price for such shares by any of the following or combination thereof: (a) cash, (b) certified or cashier's check payable to the order of the Company, (c) the delivery of whole shares of the Company's Common Stock owned by the option holder, or (d) by requesting that the Company withhold whole shares of Company Common Stock then issuable upon exercise of the option (for purposes of such a transaction the shares withheld by the Company shall be valued at the Fair Market Value as of the date prior to the exercise date), (iii) such representations and documents as the Board, in its sole discretion, deems necessary or advisable to effect compliance with all applicable provisions of the Securities Act and other federal or state securities laws or regulations, (iv) in the event that the option shall be exercised by any person or persons other than the Qualifying Director, appropriate proof of the right of such person or persons to exercise the option, and (v) such representations and documents as the Board, in its sole discretion, deems necessary or advisable.
15.    Compliance with Law. Common Stock shall not be issued upon exercise of an option granted under this Director Plan unless and until counsel for the Company shall be satisfied that any conditions necessary for such issuance to comply with applicable federal, state or local tax, securities or other laws or rules or applicable securities exchange requirements have been fulfilled.
16.    Compliance with Code Section 409A.  The Awards granted hereunder are intended to comply with the exception to Code Section 409A set forth in Treas. Reg. § 1.409A-1(b)(5)(i)(A). However, to the extent any Award does not meet the requirements of this exception and therefore is subject to the requirements of Code Section 409A, to the extent necessary to comply with Code Section 409A, any Award that is subject to Code Section 409A may be modified, replaced or terminated in the discretion of the Board. Notwithstanding any provision of this Director Plan or any document evidencing an Award to the contrary, in the event that the Board determines that any Award is or may become subject to Code Section 409A, the Company may adopt such amendments to this Director Plan and the related documents evidencing any Awards, without the consent of the Participant, or adopt other policies and procedures (including amendments, policies and procedures with retroactive effective dates), or take any other action that the Board determines to be necessary or appropriate to either comply with Code Section 409A or to exclude or exempt this Director Plan or any Award from the requirements of Code Section 409A.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00209-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00209-of-00352.parquet"}]]