Document:

Exhibit 10.1

 

	
  

  	
   

  	
  March 4, 2008

  

 

Mr. Kim S. Fennebresque

Chairman and Chief Executive
Officer

Cowen Group, Inc.

1221 Avenue of the Americas

14th Floor

New York, NY 10020

 

Dear Mr. Fennebresque:

 

This  Agreement (the “Agreement”) contains the
terms and conditions of your resignation as Chief Executive Officer and
President of Cowen Group, Inc., including all titles and positions you may
hold with any subsidiaries and/or affiliates (“Cowen” or the “Company”),
effective as of March 4, 2008 (the “Effective Date”).  As set forth more fully below, this agreement
(the “Agreement”) shall supersede any and all prior employment agreements and
letters relating to your current employment with Cowen.

 

Set forth below are the terms
and conditions concerning your resignation from service with the Company:

 

1.             Resignation.  
Prior to the Effective Date, you shall have resigned your position as
Chief Executive Officer and President of the Company, as well as any and all
other titles of and/or positions with any subsidiaries and affiliates of the
Company.

 

2.             Non-Executive Chairman.   You shall serve as non-executive Chairman of
the Board of Directors of the Company.

 

3.               Equity Awards.   (a) You
shall continue to vest in the equity awards you received as part of your 2006
and 2007 compensation, respectively, subject to the terms and conditions set
forth in the applicable equity award agreements, dated January 16, 2007
and January 25, 2008, respectively, and to the terms and conditions set
forth herein; (b) You shall forfeit in its entirety to the Company the
equity award you received in connection with initial public offering of the
Company, dated July 11, 2006; and (c) upon a “Change in Control” (as
defined in Appendix A, attached hereto) of the Company at any point prior to January 1,
2009, you shall receive a lump sum cash payment equal to (i) the number of
shares subject to your July 11, 2006 equity award, multiplied by (ii) the
value per share paid or delivered in the Change in Control transaction, with
such adjustment as may be necessary to reflect the manner and form of payment
in connection with the Change in Control transaction.

 

 

 

4.             Release.  
In return for the payments and other consideration set forth above, you
hereby and forever discharge Cowen and its parent, subsidiary and affiliated
companies, and their shareholders, officers, members, directors, agents,
employees, predecessor companies, insurers, successors and assigns from any and
all claims, rights, demands, debts, actions, causes of action, suits,
agreements, damages, and liabilities, known or unknown, which exist or have
existed up to and including the date you signed this Agreement or which arise
out of, are in any way connected with, or relate to your employment or
termination of employment with Cowen, including, but not limited to, wrongful
discharge claims, breach of contract claims, claimed violations of fair
employment practices, anti-discrimination, or civil rights laws (including but
not limited to any claims of discrimination on the basis of race, sex, age,
religion, national origin, sexual orientation, handicap, veteran status or any
other protected classification) asserted under Title VII of the Civil Rights
Act of 1964, the Age Discrimination in Employment Act, as amended by the Older
Workers’ Benefit Protection Act (“ADEA”), the Americans With Disabilities Act
of 1990, the Family and Medical Leave Act, the Workers Adjustment and
Retraining Notification Act, the Sarbanes-Oxley Act, the Employee Retirement
Income Security Act, the New York State Human Rights Law, the New York City
Human Rights Law, New York Labor Law or any other federal, state or local law,
statute, ordinance or regulation, tort claims, statutory claims, constitutional
claims, claims for wages, bonuses, incentive compensation, commissions,
allowances, vacation or holidays, severance or any other compensation or
benefits, claims for compensatory or punitive damages or attorneys’ fees,
claims with respect to defamation, intentional infliction of emotional
distress, misrepresentation, fraud or wrongful discharge and claims under the
laws of the United States or any of its states. 
You release and waive your right to file any such claim in any judicial
forum provided, however, that nothing herein prevents you from filing a charge
with, cooperating with, or participating in any proceeding before the Equal
Employment Opportunity Commission or a state fair employment practices agency
(except that you acknowledge that you may not be able to recover any monetary
benefits in connection with any such claim, charge or proceeding).  As of the date of this Agreement, you
represent that you have no pending claims of any sort against Cowen or any of
its predecessor entities.  Further, you
agree that, in exchange for the foregoing consideration, you waive any claim
for personal or monetary relief that might be awarded to you by any forum,
whether such claim has been asserted by you or by another on your behalf.  This release of claims is intended by you to
be completely effective and binding, irrespective of whether any such claims
have been asserted and irrespective of any present lack of knowledge on your
part of any such claim.

 

5.             Event of Breach. 
In the event you take any action contrary to the obligations set forth
herein or otherwise breach your obligations to the Company, or should you
institute any complaint, demand or action with regard to your employment,
compensation or separation from employment with any court, except a claim made
in good faith for a violation of the ADEA, for the breach of this Agreement, or
for failure of Cowen to provide to you any obligation under any benefit plans
in which you may be vested, Cowen shall be entitled to cease making any
discretionary payments to you or on your behalf and to recover from you all
discretionary payments made to you or on your behalf pursuant to the Agreement
and to an award of all attorney’s fees and costs incurred by Cowen in defending
against such 

 

 

 

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complaints, demand  or action or otherwise enforcing Cowen’s
rights under this paragraph of the Agreement.

 

6.             Non-Disparagement.           You agree that you shall not at any time make any
disparaging comments about or disclose to anyone your opinions concerning
Cowen, its parent(s), its subsidiaries, or its affiliated entities, any person
employed by or otherwise affiliated with Cowen and/or any of its parent(s),
subsidiaries or affiliates, or any information concerning the business affairs
of Cowen or its parent(s) or any of its subsidiaries or affiliates, that
you may have acquired in the course of your employment, and that is or may be
detrimental to Cowen or to its affiliates.

 

7.             Company Property. 
You acknowledge that you have not removed any Company property or any
work product including, but not limited to, any computer disks, files or
equipment, any and all documents, tapes or files, pagers, cell phones or other
electronic devices, all corporate credit cards and any company keys, passes,
identification cards or badges (“Company Property”) belonging to Cowen or its
affiliates, or their employees, customers or others doing business with Cowen
or its affiliates.  You further agree to
return, no later than fourteen (14) days after the effective date of
termination, all Company Property to Cowen.

 

8.             Non-Disclosure of Confidential Information.  You understand that in connection with your
employment with Cowen you have been privy to and acquired certain proprietary
or business information relating to Cowen and/or its predecessors,
subsidiaries, parent or affiliates, including confidential information and
trade or business secrets not readily available in the marketplace or to the
public.  Such information may include,
but is not limited to, information relating to their operations, business
plans, financial and accounting matters, sales, transactions, trading and
marketing data and strategies, the identity of customers, and the terms,
conditions and status of customer and trading accounts or transactions.  You agree you will not disclose to any third
parties, directly or indirectly (except to the extent required by law), any
such confidential or proprietary information. 
You also agree that your obligations under this paragraph continue after
execution of this Agreement.

 

9.             Waiver of Notice. As
of the Effective Date, the Company shall waive the “Notice of Retirement,
Resignation or Termination of Employment” requirements set forth in Paragraph 9
of the employment agreement dated November 13, 2007, between you and the
Company, and as set forth in the equity award agreements dated January 16,
2007 and January 25, 2008, respectively.

 

10.           Other Legal Proceedings.  If, prior to the date of execution of this
Agreement, you, or your attorney or representative, have filed any legal
charge(s), complaint(s) or action(s) against Cowen or its affiliates
related to any matter released or waived herein, you agree to withdraw or
discontinue such matter(s) with prejudice and to execute all documents
necessary to effectuate such withdrawal or discontinuance.  You acknowledge that the consideration
provided in this Agreement shall be accepted in full satisfaction of any claim(s) asserted
and as sufficient basis for the immediate withdrawal or dismissal.  You agree that you will not voluntarily
participate or assist others in any lawsuit or judicial proceedings 

 

 

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against Cowen or its
affiliates.  You further agree that you
will fully cooperate with Cowen or its affiliates in connection with any legal
proceeding by providing necessary information or cooperation, including but not
limited to meeting with representatives of Cowen or its affiliates or their
respective legal counsel, or providing testimony when necessary.

 

11.           Arbitration.  Both parties agree that all controversies
that may arise out of this Agreement, or arising out of your employment with,
or termination of employment from, Cowen shall be determined by arbitration in
accordance with the Federal Arbitration Act to the fullest extent permitted by
law.  That arbitration shall be commenced
and conducted through the American Arbitration Association (“AAA”) before a
single arbitrator, in accordance with the rules and procedures of the AAA
Employment Arbitration Rules and Mediation.  By agreeing to arbitrate, you understand that
you are waiving your right to a trial by a jury.  The cost of such proceedings, including all
filing and session fees, and all attorneys’ fees, shall be assessed in
accordance with the AAA Rules or as otherwise determined by the
arbitrator.

 

12.           Entire
Agreement.  You represent and
acknowledge that this Agreement represents the entire agreement between you and
Cowen, that it supersedes any prior written, oral or implied agreement between
you and Cowen regarding your employment and the termination of your employment,  and that it may not be amended or
modified except by a writing signed by you and Cowen.  You further acknowledge that you are not
relying upon any representations or statements, written or oral, made by or on
behalf of Cowen that are not expressly set forth herein.

 

13.           No
Admission of Liability.  This
Agreement is not intended, and should not be construed, as evidence of any
wrongdoing on the part of Cowen or its affiliates or subsidiaries, or as any
admission of liability under any federal, state or local law or regulation of
any nature whatsoever without application of any conflict of law
principles.  Nor may you admit, or seek
to admit, either the terms or existence of this Agreement in any proceeding,
arbitration or hearing, except to enforce this Agreement.

 

14.           Applicable
Law.  This Agreement shall be
construed and governed in accordance with the laws of the State of New York
without application of any conflict of law principles.

 

15.           Binding
Effect.  This Agreement shall be
enforceable against, and is intended to cover you, your successors, assigns,
heirs, beneficiaries and estate.  This
Agreement may not be amended, changed or modified, except by written instrument
executed by the parties executing this Agreement.

 

16.           Severability.  The provisions of this Agreement are
severable.  If a court of competent
jurisdiction rules that any provision of this Agreement is invalid or
unenforceable, such a ruling shall not affect the validity or enforceability of
any other provision of this Agreement.  However, in the event that the release and waiver
of claims set forth in paragraph 4 above shall in any respect be found to have
been void or unenforceable, Cowen shall rewrite paragraph 4 to correct the
defect.  You agree that you shall then
re-execute the revised document, and that you will not be entitled to any
additional monies, benefits, and/or compensation thereafter.

 

 

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17.           Representations and Acknowledgments.  By signing this Agreement and returning it to
us, you acknowledge that you:

 

A.                                   are
being provided with at least twenty-one (21) days to consider whether to
execute this Agreement (any or all of which you may use) and have had
sufficient time to review and consider the provisions of the Agreement;

 

B.                                     have
carefully read and fully understand the terms of this Agreement;

 

C.                                     are
entering into the Agreement knowingly and voluntarily; and

 

D.                                    have
been advised to seek advice from an attorney of your choosing prior to signing
this Agreement and have been given a reasonable opportunity to seek such
advice.

 

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You may signify your acceptance
of the terms and conditions of this Agreement by signing it and returning it to
me within thirty (30) days.  If you have
not returned the executed Agreement within the time permitted, the promises and
offers contained in the Agreement shall become null and void and you will not
be eligible to receive the payments and benefits described herein.  If you have returned the executed Agreement
within the time permitted, you may revoke the Agreement within seven (7) days
of signing, by delivering written notice of revocation to me in Cowen’s Human
Resources Department in New York.  Unless
revoked, the Agreement shall become effective and enforceable on the eighth day
after it is executed and returned to Cowen’s Human Resources Department.  In accordance with federal law regarding the
waiver of claims under the ADEA, Cowen has set forth additional information
regarding your severance offer in Appendix A to this Agreement.

 

We wish you well in your future
endeavors.  Should you have any questions
or need clarification concerning the Agreement or any aspect of your
separation, please contact me at your convenience.

 

	
   

  	
   

  	
  Yours very truly,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  COWEN GROUP, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John E. Toffolon, Jr.

  	
   

  
	
   

  	
   

  	
  John E. Toffolon, Jr.

  
	
   

  	
   

  	
  Lead Director

  
	
   

  	
   

  	
  Board of Directors

  
	
   

  	
   

  	
  Cowen Group, Inc.

  
	
   

  	
   

  	
   

  
	
  ACCEPTED AND AGREED TO

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Kim S. Fennebresque

  	
   

  	
   

  	
   

  
	
  Kim S. Fennebresque

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Dated:

  	
   March 4, 2008

  	
   

  	
   

  	
   

  
						

 

 

 

 

 

APPENDIX A

 

Change
in Control.

 

For purposes of this Agreement,
a “Change in Control” shall be deemed to have occurred if the event set forth
in any one of the following paragraphs shall have occurred:

 

(i)                                     any
Person is or becomes the beneficial owner, directly or indirectly, of
securities of the Company (not including in the securities beneficially owned
by such Person any securities acquired directly from the Company or its
Affiliates) representing more than forty percent (40%) of the combined voting power
of the Company’s then outstanding voting securities, excluding any Person who
becomes such a beneficial owner (as defined in Rule 13d-3 under the
Securities Exchange Act of 1934 (the “Exchange Act”)) in connection with a
transaction described in clause (A) of paragraph (iii) below; or

 

(ii)                                  the
following individuals cease for any reason to constitute a majority of the
number of directors then serving: individuals who, on the date of this
Agreement, constitute the Board of Directors of the Company (the “Board”) and
any new director (other than a director whose initial assumption of office is
in connection with an actual or threatened election contest, including but not
limited to a consent solicitation, relating to the election of directors of the
Company) whose appointment or election by the Board or nomination for election
by the Company’s stockholders was approved or recommended by a vote of at least
two-thirds (2/3) of the directors then still in office who either were
directors on the date of this Agreement or whose appointment, election or
nomination for election was previously so approved or recommended by such
directors, provided, that no Change of Control for this purpose shall be deemed
to occur by virtue of  (i) the
death, disability, retirement or voluntary resignation of any directors or (ii) the
resignation, removal or other departure of any director under circumstances
involving cause or under circumstances involving the affirmative vote, approval
or acceptance of such departure by a majority of the remaining directors; or

 

(iii)                               the
Company executes a definitive Merger Agreement or other document(s) relating
to a merger or consolidation of the Company or any direct or indirect
subsidiary of the Company with any other corporation or other entity (provided,
however, that if the transactions contemplated by the Merger Agreement or other
documents do not close, then the execution of the definitive Merger Agreement
or other document(s) shall not be
deemed a  Change in Control), other than (A) a
merger or 

 

 

 

                                                consolidation
which results in the voting securities of the Company outstanding immediately
prior to such merger or consolidation continuing to represent (either by
remaining outstanding or by being converted into voting securities of the surviving
entity or any parent thereof), more than fifty percent (50%) of the combined
voting power of the voting securities of the Company or such surviving entity
or any parent thereof outstanding immediately after such merger or
consolidation, or (B) a merger or consolidation effected to implement a
recapitalization of the Company (or similar transaction) in which no Person is
or becomes the beneficial owner, directly or indirectly, of securities of the
Company (not including in the securities beneficially owned by such Person any
securities acquired directly from the Company or its Affiliates) representing
more than forty percent (40%) of the combined voting power of the Company’s
then outstanding securities; or

 

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

 

 “Person” shall have the meaning set forth in Section 3(a)(9) of
the Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof,
except that such term shall not include (1) the Company or any subsidiary
corporation, (2) a trustee or other fiduciary holding securities under an
employee benefit plan of the Company or any subsidiary corporation, (3) an
underwriter temporarily holding securities pursuant to an offering of such
securities, (4) a corporation owned, directly or indirectly, by the
stockholders of the Company in substantially the same proportions as their
ownership of stock of the Company, or (5) an individual, entity or group
which, pursuant to Rule 13d-l promulgated pursuant to the Exchange Act, is
permitted to, and actually does, report its beneficial ownership of securities
of the Company on Schedule 13G (or any successor Schedule); provided that, if
any such individual, entity or group subsequently becomes required to or does
report its beneficial ownership on Schedule 13D (or any successor Schedule),
then, for purposes of this paragraph, such individual, entity or group shall
thereupon become a “Person” and shall be deemed to have first acquired, on the
first date on which such individual, entity or group becomes required to or
does so report, beneficial ownership of all of the Company securities
beneficially owned by it on such date.Exhibit 10.2

 

	
  

  	
   

  	
  March 4, 2008

  

 

 

 

 

 

Mr. Kim S. Fennebresque

Chairman and Chief Executive
Officer

Cowen Group, Inc.

1221 Avenue of the Americas

14th Floor

New York, NY 10020

 

 

Dear
Mr. Fennebresque:

 

This
letter shall constitute your agreement (“Agreement”) relating to your
employment with Cowen Group, Inc. (including any successor entity or its
holding company, collectively “Cowen,” or the “Company”), as a Senior Advisor
(your “Employment”), effective as of March 4, 2008.  As set forth more fully below, the Agreement
shall supersede any and all prior employment agreements and letters relating to
your employment with Cowen.

 

1.             Position, Duties and Responsibilities.

 

(a)                                  Position
and Base Salary.  Commencing upon the
date of the Agreement (the “Effective Date”), and continuing until the end of
the calendar year of your seventieth (70th) birthday, except as
otherwise` specified herein (the “Term”), Cowen shall employ you as a Senior
Advisor.  In that capacity, you will be
entitled to receive an annual base salary of two hundred fifty thousand dollars
($250,000).

 

(b)                                 Duties
and Responsibilities.  Your duties
and responsibilities shall be limited to providing advice and counsel to the
Chief Executive Officer of Cowen regarding strategic initiatives and other matters
to be mutually agreed upon; provided, however, that your time commitment to
Cowen as a Senior Advisor shall not
exceed twenty percent (20%) of the average level of bona fide services
performed by you on behalf of Cowen during the thirty-six (36) month period
immediately preceding the commencement of your service as a Senior Advisor.

 

(c)                                  Office Space and Administrative Assistant
Services.  You shall be entitled to an office of your
selection to be paid for by the Company, subject to an annual aggregate cap of
seventy five thousand ($75,000.00) dollars. 
Such cap shall be subject to an annual increase of seven and
three/tenths percent 

 

 

 

 

                                                (7.3%); provided, however, that in no event
shall the aggregate annual cost to the Company exceed one hundred seventy five
thousand ($175,000.00) dollars.  You
shall not enter into a lease of a duration of more than two (2) years
without the prior consent of the Company. Further, during the Term, you shall
be entitled to the services of an administrative assistant of your choosing,
who shall be a salaried employee of the Company, during your service as a
Senior Advisor.  To the extent your
receipt of the office space benefit and/or the services of an administrative
assistant results in the inclusion of income to you, the Company shall pay to
you an additional amount such that your receipt of these benefits, after paying
any federal, state and local income and employment taxes related to such
benefits, shall result in no after-tax expense to you.

 

(d)                                 Right of Suspension of Benefits.  You
shall have the right to suspend your utilization of the office space benefit
and the services of an administrative assistant at your discretion and retain
the right to re-commence utilization of this benefit at any time during your
service as a Senior Advisor; provided, however, that in no event shall your
right to this benefit extend beyond your seventieth (70) birthday.  In the event you exercise your right to
suspend your utilization of the office space benefit, the Company shall have no
obligation to pay for the office space during the suspension period.

 

(e)                                  Use of Facilities.   You
shall have reasonable use of and access to Cowen document processing, technical
support and facilities for assistance with speeches, books and other similar
projects, the costs of which will be borne the Company.

 

(f)                                    Car and Driver.  You
shall have continued use of the car and driver currently provided to you by the
Company through December 31, 2008. 
As of that date, you shall have the right to assume the lease
obligations as to the car.

 

(g)                                 Health
Benefits.  During your service as
Senior Advisor, you, your spouse and your eligible dependents shall continue to
receive health and medical benefits, consistent with the same basic terms and
conditions then existing and applied to Cowen Managing Directors or their
functional equivalents in the event the Company is merged or acquired in a
Change in Control.  All such health and medical benefits shall be
provided in accordance with the terms and eligibility requirements of their
respective plans, but in no event on terms that are less favorable than those
then existing and applied to Cowen Managing Directors.  Upon the expiration of your service as a
Senior Advisor or upon the event of your seventieth (70th) birthday,
whichever is earlier, you, your spouse and your eligible dependents shall have
the right to 

 

 

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                                                continue to be eligible to participate in the
Company’s health and medical benefit plans for the remainder of your lifetime
and the lifetime of your spouse, consistent with the same basic terms and
conditions then existing and applied to Cowen Managing Directors at that time,
to the extent such eligibility is permissible under the health and medical benefit
plans in place at the Company at that time. 
If you so elect to continue to participate in the Company’s health and
medical benefit plans, to the extent such eligibility is permissible under the
health and medical benefit plans in place at the Company at that time, you will
be responsible for paying the full cost of all premiums associated with such
coverage; provided, however, to the extent your participation in the Company’s
health and medical benefit plans results in the inclusion of income to you, the
Company shall pay to you an additional amount such that your participation in
such health and medical benefit plans, after paying any federal, state and
local income and employment taxes related to such participation, shall result
in no after-tax expense to you.

 

2.             Policies. 
You shall continue to be subject to and comply with Cowen’s Code of
Conduct, Conflict of Interest Policy, Employee Investment Policy, customary
compliance policies and all other policies, rules and practices applicable
to Cowen employees of similar rank and status, as now existing or as
subsequently modified or supplemented by Cowen in its sole discretion, except
as specified in Paragraph 7 herein and to the extent the applicability of any
such policies, rules and practices may be waived or modified by the
General Counsel of the Company.

 

3.             Expenses.  All documented and verified, reasonable and
necessary expenses which you incur in connection with the performance of your
duties hereunder shall be reimbursed in accordance with Cowen’s general
policies.  You must submit proper
documentation for each such expense within sixty (60) days after the later of (i) your
incurrence of such expense or (ii) your receipt of the invoice for such
expense.  The Company will reimburse you
for that expense within thirty (30) days after receipt of the documentation.

 

4.             Termination
of Employment.

 

(a)           Death or disability.  Your Employment as a Senior Advisor shall
terminate on your death. If you become disabled, Cowen may terminate your
Employment by giving you thirty (30) days written notice of its intention to
terminate this Agreement. In such event, your Employment shall be terminated
unless you return to full-time performance of your duties within such thirty
(30) day period. “Disabled”, as used herein, shall mean “Disability,” as such
term is defined in Section 409A of the 

 

 

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Internal Revenue Code of 1986,
as amended (“Section 409A”). 
Disputes on the issues of disability shall be determined by an impartial,
reputable physician agreed upon by the parties or their respective doctors.
Upon termination under this Paragraph 6(a), you or your estate shall be
entitled to receive only that portion of your Base Salary and any benefits or
compensation that have been earned, but unpaid, as of the date of termination.

 

(b)           Cause. 
Nothing herein shall prevent the Board of Directors of Cowen, by way of
a majority vote, taken in your absence, from terminating your Employment for
Cause. “Cause” shall mean:

 

(i)                                     fraud,
dishonesty, gross negligence or substantial misconduct in the performance of
your duties and responsibilities;

 

(ii)                                  any
wrongful act that materially adversely affects the business or reputation of
Cowen, including, but without limitation, breach of a fiduciary duty and/or
intentional material violations of Cowen policies or any violation of law;

 

(iii)                               your
failure or refusal, after written notice of such failure or refusal has been
given to you by the Office of the General Counsel, upon the direction of the
Board of Directors, in any material respect, to perform faithfully or
diligently, the provisions of this Agreement or the duties of your position,
including, by way of example and not of limitation, the failure or refusal to
follow instructions reasonably given in the course of employment, or violation
of any material duty to Cowen; or

 

(iv)                              your
employment by a “direct competitor” of the Company, as defined in Paragraph 7
herein.

 

Upon termination of your
Employment for Cause, you shall be entitled to receive only your Base Salary
and any other benefits or compensation that have been earned or vested in
accordance with the terms of the relevant plans, if any, pursuant to which such
benefits or compensation were awarded, but unpaid, as of the date of termination.

 

(c)           Offset.  In
the event of termination, Cowen may offset, to the fullest extent permitted by
law, any amounts due to Cowen from you, or advanced or loaned to you by Cowen,
from any monies owed to you or your estate by reason of your termination.

 

(d)           Section 409A
Compliance.  Notwithstanding anything
in this Agreement to the contrary, in the event that you are deemed to be a “specified
employee” within the meaning of Section 409A, no payment that is “deferred
compensation” subject to Section 409A shall be made to the Executive prior
to the date that is six (6) months after the date of your separation from
service (as defined 

 

 

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in Section 409A)(or such
earlier date as may be permitted by Section 409A). In such event, the
payments subject to the six (6)-month delay will be paid in a lump sum on the
earliest permissible payment date.

 

5.             Notice of Retirement, Resignation or Termination of
Employment.  During the Term of this
Agreement, you will not voluntarily retire, resign or otherwise terminate your
Employment as a Senior Advisor without first giving Cowen at least ninety (90)
days prior written notice of the effective day of your retirement, resignation
or other termination. Such written notice shall be sent, by certified mail, to
Cowen Group, Inc., Attn: General Counsel, 1221 Avenue of the Americas, New
York, NY 10020.

 

Cowen retains the right to
waive the notice requirement in whole or in part. Cowen may, but shall not be
obligated to, provide you with work at any time after such notice is given
pursuant to this paragraph and the Cowen may, in its discretion, in respect of
all or part of an unexpired period of notice: (i) require you to comply
with such conditions as it may specify in relation to transitioning your duties
and responsibilities, (ii) assign you other duties or (iii) withdraw
any powers vested in, or duties assigned to, you.

 

6.             Non-Solicitation.

 

(a)           While employed and for one 
year thereafter, you will not, without Cowen’s prior written consent,
directly or indirectly, (a) solicit or induce, or cause others to solicit
or induce, any employees of Cowen to leave Cowen, or in any way modify their
relationship with Cowen (except your current assistant(s)), (b) hire or
cause others to hire any employees of Cowen, (c) encourage or assist in
the hiring process of any employees of the Cowen or in the modification of any
such employee’s relationship with Cowen, or cause others to participate,
encourage or assist in the hiring process of any employees of Cowen.

 

(b)           In addition, while employed and for one  year thereafter, you agree you will not,
directly or indirectly solicit the trade or patronage of any clients or
customers or any prospective clients or customers of Cowen with respect to any
products, services or other matters in which Cowen is active.

 

7.             Non-Competition. 
During your Employment as a Senior Advisor, you shall be prohibited from
any affiliation with a direct competitor of Cowen while serving as a Senior
Advisor without the prior written consent of the Board of Directors of Cowen,
which consent shall not be unreasonably withheld.  In the event the Board of Directors of Cowen
declines to consent to your affiliation with a 

 

 

5

 

direct competitor and you
thereafter resign as a Senior Advisor at that time, your service as a Senior
Advisor shall terminate for all purposes as of the date of your resignation and
you shall have no right of suspension pursuant to Paragraph 1(d) herein with
respect to any benefits otherwise provided to you  hereunder.  For purposes of this
provision, the term “direct competitor” of Cowen shall mean investment banking
firms engaged in both serving the same sectors as Cowen and providing similar
products and services in Equity Research, Equity Sales & Trading, and
Investment Banking.

 

8.             Non-Disclosure of Confidential Information.  You will not at any time, whether during your
Employment or following the termination or expiration of your Employment, for
any reason whatsoever, and forever hereafter, directly or indirectly disclose
or furnish to any firm, corporation or person, except as otherwise required by
law, any confidential or proprietary information of Cowen with respect to any
respect of its operations or affairs. “Confidential or proprietary information”
shall mean information generally unknown to the public to which you gain access
by reason of your employment by Cowen and includes, but is not limited to,
information relating to all present or potential customers, business and
marketing plans, sales, trading and financial data and strategies, salaries and
employment benefits, and operational costs. This provision survives the
expiration of the term of this Agreement.

 

9.             Return of Company Property and Company Work Product.  All records, files, memoranda, reports,
customer information, client lists, documents, equipment, and the like,
relating to the business of Cowen which you prepared or came into contact with
while you were an employee of Cowen, shall remain the sole property of Cowen.
You agree that on request by Cowen, and in any event upon the termination of
your Employment, you shall turn over to Cowen all documents, papers, or other
material in your possession and under your control which may contain or be
derived from confidential information, together with all documents, notes, or
other work product which is connected with or derived from your services to
Cowen whether or not such material is in your possession. You agree you shall
have no proprietary interest in any work product developed or used by you and
arising out of employment by Cowen. This provision survives the expiration of
the term of this Agreement.

 

10.           Remedies and Rights to Injunctive Relief.  In the event of a breach by you of your
obligation under this Agreement, Cowen, in addition to being entitled to
exercise all rights granted by law, including recovery of damages, will be
entitled to specific performance of its rights under this Agreement. You
acknowledge that Cowen shall suffer irreparable harm in the event of a breach
or prospective breach of Paragraphs 5, 6, 7, 8 and 9 hereof and monetary
damages would not be adequate compensation. Accordingly, Cowen shall be
entitled to seek injunctive relief in any federal or state court of competent
jurisdiction located in New York County. You waive the defense that a remedy at
law would be adequate. You further agree that Cowen and its affiliates shall be
entitled to recover all costs and expenses (including attorney’s fees) incurred
in connection with the enforcement of Cowen’s rights under this Agreement.

 

 

6

 

11.           Arbitration.

 

(a)           Both parties agree that all controversies that may arise
out of this Agreement, or arising out of your employment with, or termination
of employment from, Cowen shall be determined by arbitration in accordance with
the Federal Arbitration Act to the fullest extent permitted by law.  That arbitration shall be commenced and conducted
through the American Arbitration Association (“AAA”) before a single
arbitrator, in accordance with the rules and procedures of the AAA
Employment Arbitration Rules and Mediation.  By agreeing to arbitrate, you understand that
you are waiving your right to a trial by a jury.  The cost of such proceedings, including all
filing and session fees, and all attorneys’ fees, shall be assessed in
accordance with the AAA Rules or as otherwise determined by the
arbitrator.  

 

(b)           The arbitrators shall not have authority to amend, alter,
modify, add to or subtract from the provisions hereof. The award of the
arbitrators, in addition to granting the relief prescribed above and such other
relief as the arbitrators may deem proper, may contain provisions commanding or
restraining acts or conduct of the parties or their representatives and may
further provide for the arbitrators to retain jurisdiction over this Agreement
and the enforcement thereof. If either party shall deliberately default in
appearing before the arbitrators, the arbitrators are empowered, nonetheless,
to take the proof of the party appearing and render an award thereon.  

 

(c)           Following a Change in Control, you shall be entitled to
reimbursement for all reasonable attorneys’ fees and expenses in connection
with any dispute proceedings to the extent the arbitrator determines that you
are entitled to such reimbursement. 

 

12.           Notices.  Any
notice to be given hereunder shall be in writing and delivered personally or
sent by certified mail, postage prepaid, return receipt requested, addressed to
the party concerned at the address indicated below or to such other address as
such party may designate in writing.

 

7

 

	
  To:

  	
   

  	
  To:

  
	
  Mr. Kim
  S. Fennebresque

  	
   

  	
  Cowen
  Group, Inc.

  
	
  800
  Park Avenue

  	
   

  	
  General
  Counsel

  
	
  New
  York, NY 10021

  	
   

  	
  1221
  Avenue of the Americas

  
	
  And

  	
   

  	
  New
  York, NY 10020

  
	
  Cowen
  Group, Inc.

  1221 Avenue of the Americas

  New York, NY 10020

  	
   

  	
   

  

 

Any
notice delivered personally under this Paragraph shall be deemed given on the
date delivered, and any notice set by certified mail, postage prepaid, return
receipt requested, shall be deemed given on the dated mailed.

 

13.           Severability.  Should any provision herein be rendered or
declared legally invalid or unenforceable by a court of competent jurisdiction
or by the decision of an authorized governmental agency, such invalidation of
such part shall not invalidate the remaining portions thereof.

 

14.           Other Agreements.  You represent and warrant that you are not a
party to any agreement or bound by an obligation which would prohibit you from
accepting and agreeing hereto or fully performing the obligations hereunder.

 

15.           Complete Agreement.  The provisions herein contain the entire
agreement and understanding of the parties and fully supersede any and all
prior agreements or understandings between them pertaining to the subject
matter hereof, including the Prior Agreement. There have been no
representations, inducements, promises or agreements of any kind which have
been made by either party, or by any person acting on behalf of either party,
which are not embodied herein. The provisions hereof may not be changed or
altered except in writing duly executed by you and a duly authorized agent of
Cowen.

 

16.           No Rule of Strict
Construction.  The language contained
herein shall be deemed to be that approved by all parties hereto and no rules of
strict construction shall be applied against any party hereto.

 

8

 

17.           Applicable Law.  The interpretation and application of the
terms herein shall be governed by the laws of the State of New York without
regard to principles of conflict of laws.

 

18.           No Waiver.  Any failure by either party to exercise its
rights to terminate this Agreement or to enforce any of its provisions shall
not prejudice such party’s rights of termination or enforcement for any
subsequent or further violations or defaults by the other party.

 

19.           Titles.  Titles to the paragraphs in this Agreement
are intended solely for convenience and no provision of this Agreement is to be
construed by reference to the title of any paragraph.

 

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

 

21.           Section 409A.  This Agreement is intended to comply with the
requirements of Section 409A and shall be interpreted accordingly. In the
event that any provision of this Agreement would or may cause this Agreement to
fail to comply with Section 409A, such provision may be deemed null and
void and you and the Company agree to amend or restructure this Agreement, to
the extent necessary and appropriate to avoid adverse tax consequences under Section 409A.

 

22.           Successors and Assigns.  This Agreement shall inure to the benefit of,
and shall be binding upon your heirs, executors, administrators, successors and
legal representatives and shall inure to the benefit of, and be binding upon
Cowen and its successors and assigns. You shall not assign, delegate,
sub-delegate, transfer, pledge, encumber, hypothecate, or otherwise dispose of
this Agreement, or any rights, obligations or duties hereunder, and any such
attempted delegation or disposition shall be null and void and without any
force or effect; provided, however, that nothing contained herein shall prevent
you from designating beneficiaries for insurance, death or retirement benefits.

 

[Remainder of page intentionally blank]

 

9

 

If
you agree to the terms set forth in this Agreement please acknowledge your
agreement by signing the signature line set forth below.

 

	
   

  	
  Sincerely,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  COWEN
  GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ John E.
  Toffolon, Jr.

  
	
   

  	
  John
  E. Toffolon, Jr

  
	
   

  	
  Lead
  Director

  
	
   

  	
  Board
  of Directors

  
	
   

  	
  Cowen
  Group, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
  AGREED
  AND ACCEPTED

  	
   

  
	
   

  	
   

  
	
  Signed:

  	
  /s/
  Kim S. Fennebresque

  	
   

  
	
   

  	
  Kim
  S. Fennebresque

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
  March 4, 2008

  	
   

  
	
   

  	
   

  	
   

  

 

10

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