Document:

Exhibit 10.5

 

 

FORM OF

 

REGISTRATION RIGHTS AGREEMENT

 

BY AND AMONG

 

DUFF & PHELPS CORPORATION

 

and

 

the HOLDERS, as defined herein

 

Dated as of      ,
2007

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  DEFINITIONS
  AND OTHER MATTERS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 1.1

  	
   

  	
  Definitions

  	
   

  	
  1

  
	
  Section 1.2

  	
   

  	
  Definitions Generally

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  REGISTRATION
  RIGHTS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 2.1

  	
   

  	
  Shelf Registration

  	
   

  	
  7

  
	
  Section 2.2

  	
   

  	
  Lovell Holders and Vestar Holders Demand
  Registration

  	
   

  	
  8

  
	
  Section 2.3

  	
   

  	
  Shinsei Holders Demand Registration

  	
   

  	
  9

  
	
  Section 2.4

  	
   

  	
  Priority on Demand Registration

  	
   

  	
  10

  
	
  Section 2.5

  	
   

  	
  Lovell Holders and Vestar Holders Piggyback
  Registration

  	
   

  	
  12

  
	
  Section 2.6

  	
   

  	
  Shinsei Holders Piggyback Registration

  	
   

  	
  14

  
	
  Section 2.7

  	
   

  	
  Priority on Piggyback Registrations

  	
   

  	
  15

  
	
  Section 2.8

  	
   

  	
  Lock-Up Agreements

  	
   

  	
  15

  
	
  Section 2.9

  	
   

  	
  Registration Procedures

  	
   

  	
  16

  
	
  Section 2.10

  	
   

  	
  Registration Restrictions

  	
   

  	
  19

  
	
  Section 2.11

  	
   

  	
  Indemnification by the Company

  	
   

  	
  19

  
	
  Section 2.12

  	
   

  	
  Indemnification by the Holders

  	
   

  	
  19

  
	
  Section 2.13

  	
   

  	
  Conduct of Indemnification Proceedings

  	
   

  	
  20

  
	
  Section 2.14

  	
   

  	
  Contribution

  	
   

  	
  20

  
	
  Section 2.15

  	
   

  	
  Underwritten Offering

  	
   

  	
  21

  
	
  Section 2.16

  	
   

  	
  Other Indemnification

  	
   

  	
  21

  
	
  Section 2.17

  	
   

  	
  Rule 144 Information/Exchange Act Reporting

  	
   

  	
  22

  
	
  Section 2.18

  	
   

  	
  No Transfer of Registration Rights

  	
   

  	
  22

  
	
  Section 2.19

  	
   

  	
  Parties in Interest

  	
   

  	
  22

  
	
  Section 2.20

  	
   

  	
  Mergers, Recapitalizations, Exchanges or
  Other Transactions Affecting Registrable Securities

  	
   

  	
  22

  
	
  Section 2.21

  	
   

  	
  Registration Expenses

  	
   

  	
  22

  
	
  Section 2.22

  	
   

  	
  No Inconsistent Agreements

  	
   

  	
  23

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  MISCELLANEOUS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 3.1

  	
   

  	
  Term of the Agreement; Termination of
  Certain Provisions

  	
   

  	
  24

  
	
  Section 3.2

  	
   

  	
  Amendments; Waiver

  	
   

  	
  24

  
	
  Section 3.3

  	
   

  	
  Governing Law

  	
   

  	
  24

  
	
  Section 3.4

  	
   

  	
  Notices

  	
   

  	
  25

  
	
  Section 3.5

  	
   

  	
  Severability

  	
   

  	
  25

  

 

i

 

	
  Section 3.6

  	
   

  	
  Specific Performance

  	
   

  	
  25

  
	
  Section 3.7

  	
   

  	
  Assignment; Successors

  	
   

  	
  26

  
	
  Section 3.8

  	
   

  	
  No Third-Party Rights

  	
   

  	
  26

  
	
  Section 3.9

  	
   

  	
  Section Headings

  	
   

  	
  26

  
	
  Section 3.10

  	
   

  	
  Execution in Counterparts

  	
   

  	
  26

  

 

ii

 

REGISTRATION RIGHTS AGREEMENT

 

This REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made
and entered into as of      , 2007, by and among Duff
& Phelps Corporation, a Delaware corporation (the “Company”) and the Holders (as defined herein).

 

W  I  T  N
E  S  S  E  T  H:

 

WHEREAS, the Holders are Beneficial Owners of Registrable Securities
(as defined herein).

 

WHEREAS, the Company desires to provide the Holders with registration
rights with respect to the Registrable Securities held by the Holders.

 

NOW, THEREFORE, in consideration of the premises and of the mutual
agreements, covenants and provisions herein contained, the parties hereto agree
as follows:

 

ARTICLE I

DEFINITIONS AND OTHER MATTERS

 

Section 1.1                                      Definitions.
Capitalized terms used in this Agreement without other definition shall, unless
expressly stated otherwise, have the meanings specified in this Section 1.1:

 

(a)                           “Affiliate”
shall
mean any person who is an “affiliate” as defined in Rule 12b-2 of the General
Rules and Regulations under the Exchange Act (as defined below).

 

(b)                          “Agreement” has the meaning ascribed to such
term in the preamble.

 

(c)                           “Beneficial
Owner” has the meaning set forth in Rule 13d-3 under the
Exchange Act.

 

(d)                          “Board” means the Board of Directors of the
Company.

 

 

(e)                           “Certificate
of Incorporation” means the Amended and Restated
Certificate of Incorporation of Duff & Phelps Corporation, as filed with
the Delaware Secretary of State on August 31, 2007.

 

(f)                             “Class A
Common Stock”means the Class A common stock, par
value $0.01 per share of Duff & Phelps Corporation.

 

(g)                          “Class B
Shares” means the Class B common stock, par value $0.0001 per share
of Duff & Phelps Corporation.

 

(h)                          “Common Stock” means Class A
Common Stock and Class B Shares.

 

(i)                              “Company” has the meaning ascribed to such
term in the preamble.

 

(j)                              “Demand
Notice” has the meaning ascribed to such term in Section
2.2(a).

 

(k)                           “Demand
Registration” means the registration under the
Securities Act of all or any portion of the Registrable Securities specified in
the Demand Notice.

 

(l)                              “DPA”
means Duff & Phelps Acquisitions, LLC, a Delaware limited liability
company.

 

(m)                        “Exchange
Act” means the United States Securities Exchange Act of
1934, as amended, and the rules and regulations promulgated thereunder.

 

(n)                          “Exchange
Agreement” means that certain Exchange Agreement, dated as of      
2007, among the Company, DPA and the members.

 

(o)                          “Fifth
Anniversary” means the five-year anniversary of
the date of closing of the IPO.

 

(p)                          “First
Anniversary” means the one-year anniversary of
the date of pricing of the IPO.

 

2

 

(q)                          “Governmental
Authority” means any national, local or foreign (including U.S.
federal, sta te or local) or supranational (including European Union)
governmental, judicial, administrative or regulatory (including
self-regulatory) agency, commission, department, board, bureau, entity or
authority of competent jurisdiction.

 

(r)                             “Holder”
means any persons that are beneficial owners of Registrable Securities.

 

(s)                           “Indemnified
Parties” has the meaning ascribed to such term in Section
2.11.

 

(t)                             “IPO” means the initial
public offering of the Class A Common Stock.

 

(u)                          “IPO Date” means the closing date of the IPO
of the Class A Common Stock.

 

(v)                          “LLC Agreement” means the Third Amended and
Restated Limited Liability Company Agreement, as amended, of Duff & Phelps
Acquisitions, LLC.

 

(w)                        “Lovell Holders” means,
collectively LM Duff Holdings, LLC, Lovell Minnick Equity Partners LP and any
transferee of Registrable Securities from such Lovell Holders.

 

(x)                            “Maximum Offering Size” has
the meaning ascribed to such term in 2.3(d).

 

(y)                          “New
Class A Units” means the New Class A Units of Duff & Phelps
Acquisitions LLC issued pursuant to the LLC Agreement.

 

(z)                            “Piggyback
Registration” means the registration under the Securities Act of
Registrable Securities on a registration statement initially intended to
register any equity securities of the Company (other than a registration on
Form S-8, or any successor Forms, or, with respect to the Lovell Holders and
the Vestar Holders, a registration that is pursuant to a Demand Registration
made by either the Lovell Holders or the Vestar Holders), whether or not for
sale for the Company’s own account.

 

3

 

(aa)                     “Registration
Expenses” means any and all expenses incident to the
performance of or compliance with any registration or marketing of securities,
including all (i) registration and filing fees, and all other fees and expenses
payable in connection with the listing of securities on any securities exchange
or automated interdealer quotation system, (ii) fees and expenses of compliance
with any securities or “blue sky” laws (including reasonable fees and
disbursements of counsel in connection with “blue sky” qualifications of the
securities registered), (iii) expenses in connection with the preparation,
printing, mailing and delivery of any registration statements, prospectuses and
other documents in connection therewith and any amendments or supplements
thereto, (iv) security engraving and printing expenses, (v) internal expenses
of the Company (including, without limitation, all salaries and expenses of its
officers and employees performing legal or accounting duties), (vi) customary
fees and expenses for independent certified public accountants retained by the
Company (including the expenses relating to any comfort letters or costs
associated with the delivery by independent certified public accountants of any
comfort letters requested pursuant to Section 2.9(h)), (vii) reasonable fees
and expenses of any special experts retained by the Company in connection with
such registration, (viii) reasonable fees, out-of-pocket costs and expenses of
the Company, including counsel for the Company, (ix) reasonable fees,
out-of-pocket costs and expenses of one counsel to the selling shareholders; provided,
however, that each of the Lovell Holders, the Vestar Holders and the
Shinsei Holders may engage their own counsel in any registration or marketing
of securities involving securities of the Company held by them and the Company
shall pay the reasonable fees and expenses of such counsel up to $50,000, (x)
fees and expenses in connection with any review by the Financial Industry
Regulatory Authority, Inc. (“FINRA”) of the underwriting arrangements or other
terms of the offering, and all fees and expenses of any “qualified independent
underwriter,” including the reasonable fees and expenses of any counsel
thereto, (xi) costs of printing and producing any agreements among
underwriters, underwriting agreements, any “blue sky” or legal investment
memoranda and any selling agreements and other documents in connection with the
offering, sale or delivery of the Registrable Securities, (xii) transfer agents’
and registrars’ fees and expenses and the fees and expenses of any other agent
or trustee appointed in connection with such offering, (xiii) expenses relating
to any analyst or investor presentations or any “road shows” undertaken in
connection with the registration, marketing or selling of the Registrable
Securities, (xiv) fees and expenses payable in connection with any ratings of
the Registrable Securities, including expenses relating to any presentations to
rating agencies and (xv) all out-of-pocket costs and expenses incurred by the
Company or its appropriate officers in connection with their compliance with
Section 2.9(l).

 

(bb)                   “Registrable
Securities” shall mean shares of Class A Common Stock that are
issuable upon the exchange of New Class A Units and cancellation of Class B
Shares pursuant to the Exchange Agreement. 
For purposes of this Agreement, (i) Registrable Securities shall also
include (A) any shares of Class A Common Stock acquired or owned by any Shinsei
Holders and (B) any shares of Class A Common Stock acquired or owned by any of
the Lovell Holders or Vestar Holders after the IPO Date provided such Lovell
Holders and Vestar Holders are each, respectively, Affiliates of the Company,
(ii) Registrable Securities shall cease to be Registrable Securities when a
Registration Statement covering such Registrable Securities has been declared
effective under the Securities Act by the SEC and such Registrable Securities
have been disposed of pursuant to such effective Registration Statement and (iii)
the Registrable Securities of a holder shall not be deemed to be

 

4

 

Registrable
Securities at any time when the entire amount of such Registrable Securities
proposed to be sold by in a single sale constitutes less than 1% of the then
outstanding shares of Class A Common Stock or, in the written opinion of
counsel satisfactory to the Company, in its reasonable judgment, may be sold to
the public pursuant to Rule 144(k) (or any successor provision then in effect)
under the Securities Act in any three-month period or any such Registrable
Securities have been sold in a sale made pursuant to Rule 144 of the Securities
Act.

 

(cc)                       “SEC” means the
Securities and Exchange Commission.

 

(dd)                   “Second Anniversary” means
the two-year anniversary of the date of pricing of the IPO.

 

(ee)                     “Securities
Act” means the United States Securities Act of 1933, as
amended, and the rules and regulations promulgated thereunder.

 

(ff)                         “Shinsei Holders” means
Shinsei Bank, Limited and any transferees of Registrable Securities from
Shinsei Bank, Limited.

 

(gg)                   “Stockholders
Agreement” means the Stockholders Agreement by and among the Company, DPA
and Shinsei
Bank, Limited, dated September 5, 2007.

 

(hh)                   “Subsidiary” means, with respect to any person,
any corporation, limited liability company, company, partnership, trust,
association or other legal entity or organization of which such person (either
directly or through one or more subsidiaries of such person) (a) owns, directly
or indirectly, a majority of the capital stock or other equity interests the
holders of which are generally entitled to vote for the election of the board
of directors or other governing body of such corporation, limited liability
company, partnership, trust, association or other legal entity or organization,
or (b) is otherwise entitled to exercise (1) a majority of the voting power
generally in the election of the board of directors or other governing body of
such corporation, limited  liability
company, partnership, trust, association or other legal entity or organization
or (2) control of such corporation, limited liability company, partnership,
trust, association or other legal entity or organization.

 

(ii)                           “Transfer” means, in respect of any Class B
Shares, New Class A Units, shares of Class A Common Stock, property or other
asset, any sale, assignment, transfer, distribution or other disposition
thereof, whether voluntarily or by operation of Law.

 

5

 

(jj)                           “Underwritten
Offering”
means a firm committment underwritten public offering pursuant to an effective
registration statement under the Securities Act, other than pursuant to a
registration statement on Forms S-4 or S-8 or any similar or successor form.

 

(kk)                     “Vestar Holders” means,
collectively, Vestar Capital Partners IV, L.P., Vestar/D&P Holdings LLC and
any transferee of Registrable Securities from such Vestar Holders.

 

Section 1.2                                      Definitions
Generally. Wherever required by the context of this Agreement, the singular
shall include the plural and vice versa, and the masculine gender shall include
the feminine and neuter genders and vice versa, and references to any
agreement, document or instrument shall be deemed to refer to such agreement,
document or instrument as amended, supplemented or modified from time to
time.  When used herein:

 

(a)                           the word “or” is not exclusive;

 

(b)                          the words “including,” “includes,” “included”
and “include” are deemed to be followed by the words “without limitation”;

 

(c)                           the terms “herein,” “hereof” and “hereunder”
and other words of similar import refer to this Agreement as a whole and not to
any particular section, paragraph or subdivision;

 

(d)                          the word “person” means any
individual, corporation, limited liability company, trust, joint venture,
association, company, partnership or other legal entity or a government or any
department or agency thereof or self-regulatory organization; and

 

(e)                           all section, paragraph or clause
references not attributed to a particular document shall be references to such
parts of this Agreement, and all exhibit, annex and schedule references not
attributed to a particular document shall be references to such exhibits,
annexes and schedules to this Agreement.

 

6

 

ARTICLE II

REGISTRATION RIGHTS

 

Section 2.1                                      Shelf
Registration.

 

(a)                           Upon the earlier of (i) the
expiration of any lock-up period following the completion of the Company’s
second registered, Underwritten Offering following the IPO and (ii) the Second
Anniversary, if any Holder so requests, or at any time after one (1) year
following the IPO Date, if the Shinsei Holders so request, the Company shall
use its reasonable best efforts to cause to be filed under the Securities Act
with the SEC, a registration statement relating to sales of all Registrable
Securities for which the Company has received notice to include in such
registration statement, pursuant to Rule 415 promulgated under the Securities
Act, or any similar rule that may be adopted by the SEC (a “Shelf-Registration”); provided, however,
that in no event shall the Company be obligated to file a Shelf Registration
prior to the later of the First Anniversary and such time as the Company is
eligible to use Form S-3; provided, further, that, with respect
to the Shinsei Holders, the Company shall not be obligated to file a Shelf
Registration (i) after the Fifth Anniversary, or (ii) if (based on the
then-current market prices) the number of shares of Registrable Securities
specified in such notice would not yield gross proceeds to the selling
stockholders of at least $5,000,000.

 

(b)                          Whenever the Company is required by
this Section 2.1 to use its reasonable best efforts to effect the registration
of Registrable Securities on Form S-3, each of the procedures and requirements
of Section 2.9 hereof shall apply to such registration.  The Company shall maintain the effectiveness
of such Shelf Registration until the earlier of the date on which (i) all of
the Registrable Securities included thereon has been sold, or (ii) until such
Registrable Securities are no longer Registrable Securities. If, in connection
with any intended offering off of a Shelf Registration, a managing underwriter
advises the Company in writing that, in its view, the number of shares of
Registrable Securities to be included in the Shelf Registration exceeds the
number that can be included without having a material adverse effect on the
Company, then, there shall be no limitation on the number of Shelf
Registrations that the Company is obligated to effect under this Section 2.1 to
cover all of the Registrable Securities then outstanding, either by the filing
of a new Shelf Registration or through the addition of Registrable Securities
to an existing Shelf Registration by prospectus supplement or otherwise; provided,
however, that the Company shall not be required to file more than one
registration statement on Form S-3 in any three-month period pursuant to this
Section 2.1; provided, further, that, with respect to the Shinsei
Holders, the Company shall not be required to file more than two registration
statements on Form S-3 in any twelve-month period pursuant to this Section 2.1.

 

(c)                           Upon notice to the Holders, the
Company may postpone effecting a registration pursuant to this Section 2.1 for
a reasonable time specified in such notice but not exceeding 75 days from the
receipt of such notice, if (i) the Company’s Board of Directors (the “Board”)
shall determine in good faith that effecting the registration would materially
and adversely affect an offering of securities of the Company the preparation
of which had then been commenced or (ii) the Company is in possession of
material non-public information the disclosure of which during the period
specified in such notice the Board resolves in good faith would not be in the
best interests of the Company.

 

(d)                          Upon notice to the Holders, the
Company may terminate an existing Shelf Registration pursuant to this Section
2.1, if (i) the Company’s Board of Directors (the

 

7

 

“Board”)
shall determine in good faith that the existence of the Shelf Registration has
a material adverse effect on the Company or (ii) the Company is in possession
of material non-public information the disclosure of which the Board resolves
in good faith would not be in the best interests of the Company.

 

Section 2.2                                      Lovell
Holders and Vestar Holders Demand Registration.

 

(a)                           If on or after the 150th  day after the IPO, the Company shall
receive a written request (a “Demand Notice”)
from either of the Lovell Holders or the Vestar Holders that the Company effect
a Demand Registration, specifying the intended method of
disposition thereof, then the Company shall use its reasonable best efforts to
effect within 60 days of such Demand Notice (but in the event that such Demand
Notice is delivered between the 150th and 180th day after
the IPO, on or before the 240th day after the IPO), subject to the
restrictions in Section 2.2(d), the registration under the Securities Act of
the Registrable Securities for which the Lovell Holders and Vestar Holders have
requested registration under this Section 2.2, all to the extent necessary to
permit the disposition (in accordance with the intended methods thereof as
aforesaid) of the Registrable Securities so to be registered; provided, however,
that, subject to the provisions of the Exchange Agreement governing
restrictions on transfer, (i) the Company shall not be required to file the
registration statement related to such Demand Registration prior to expiration
of the Initial Lock-Up Period (as defined in the Exchange Agreement) and (ii)
the parties hereto shall take all reasonable steps to prevent any public
disclosure related to the exercise of the Demand Registration or preparation of
the registration statement related to such Demand Registration prior to the
expiration of the Initial Lock-Up Period. 
Notwithstanding the foregoing, (i) the Lovell Holders and Vestar Holders
shall collectively be entitled to three Demand Registrations pursuant to this
Section 2.2 up to the Second Anniversary and (ii) in the event the Company is
not eligible to use Form S-3 at any time beginning on or after the Second
Anniversary and ending on (and including) the last day of the 30th
month following the IPO, the Lovell Holders and Vestar Holders shall each be
entitled to one Demand Registration during such six month period, provided,
that, in any event, the Lovell Holders and Vestar Holders shall be
entitled to no more than one Demand Registration in the aggregate during any
three-month period and (iii) if either the Lovell Holders or Vestar Holders
provide a Demand Notice, the Company shall give written notice to the Lovell
Holders if a Vestar Holder made the demand or the Vestar Holders if a Lovell
Holder made the demand, informing them of such Demand Registration and giving
such Holders ten days to respond with a written request to include Registrable
Securities in such Demand Registration. Such Demand Notice will account for a
single Demand Registration.

 

(b)                          At any time prior to the effective
date of a registration statement relating to any registration, the Lovell
Holders or the Vestar Holders who elected to participate in a Demand
Registration pursuant to this Section 2.2, in their individual capacities, may
revoke all or part of such Demand Registration request by providing a notice to
the Company revoking such request.

 

8

 

(c)                           Upon notice to the Lovell Holders
and Vestar Holders, the Company may postpone effecting a registration pursuant
to this Section 2.2 on one occasion during any period of six consecutive months
for a reasonable time specified in the notice but not exceeding 75 days after
the receipt of such notice, if (i) the Company’s Board of Directors shall determine
in good faith that effecting the registration would materially and adversely
affect an offering of securities of such company the preparation of which had
then been commenced or (ii) the Company is in possession of material non-public
information the disclosure of which during the period specified in such notice
the Company believes in good faith would not be in the best interests of the
Company.

 

(d)                          Notwithstanding any provision in
this Section 2.2 or elsewhere in this Agreement, and subject to Section 2.3, no
provision relating to the registration of Registrable Securities shall be
construed as permitting any Holder, other than the Lovell Holders or Vestar
Holders, to make a Demand Registration prior to the Second Anniversary.

 

Section 2.3                                      Shinsei
Holders Demand Registration.

 

(a)                           If on or after the date that is one
(1) year from the date of the Stockholders Agreement,  the Company shall receive a Demand Notice
from the Shinsei Holders that the Company effect a Demand Registration for all
or any portion of the Registrable Securities specified in such Demand Notice,
specifying the intended method of disposition thereof, then the Company shall
use its reasonable best efforts to effect within 60 days of such Demand Notice,
subject to the restrictions of Section 2.3(c), the registration under the
Securities Act of the Registrable Securities for which the Shinsei Holders have
requested registration under this Section 2.3, all to the extent necessary to
permit the disposition (in accordance with the intended methods thereof as
aforesaid) of the Registrable Securities so to be registered; provided, that
the Company shall have no obligation to register such shares of Registrable
Securities pursuant to this Section 2.3 if (based on the then-current market prices)
the number of shares of Registrable Securities specified in such notice would
not yield gross  proceeds to the selling
stockholders of at least $5,000,000.  At
any time prior to the effective date of a registration statement relating to
any registration, the Shinsei Holders who elected to participate in a Demand
Registration pursuant to this Section 2.3, in their individual capacities, may
revoke all or part of such Demand Registration request by providing a notice to
the Company revoking such request.

 

(b)                          Subject to the provisions of Section
2.3(a), the Shinsei Holders shall be entitled to request an aggregate of two
(2) Demand Registrations, provided, that the Shinsei Holders
shall be entitled to no more than one Demand Registration during any six-month
period.

 

(c)                           Upon notice to the Shinsei Holders,
the Company may postpone effecting a registration statement for a Demand
Registration pursuant to this Section 2.3 on one occasion during any period of
six consecutive months for a reasonable time specified in the notice but not
exceeding 75 days after receipt of the notice, if (i) the Company’s Board of
Directors shall determine in good faith that effecting the registration would
materially and adversely affect an offering of securities of such company the
preparation of which had then

 

9

 

been
commenced or (ii) the Company is in possession of material non-public
information the disclosure of which during the period specified in such notice
the Company believes in good faith would not be in the best interests of the
Company.

 

(d)                          If a Demand Registration made
pursuant to this Section 2.3 involves an Underwritten Offering in which the
Company is selling and the managing underwriter advises the Company and the Shinsei
Holders that, in its view, the number of shares of common equity securities
requested to be included in such registration exceeds the largest number of
shares that can be sold without having an adverse effect on such offering,
including the price at which such shares can be sold (the “Maximum Offering
Size”), the Company shall include in such registration, in the priority
listed below, up to the Maximum Offering Size:

 

(i)  first, all Registrable Securities
requested to be registered in the Demand Registration by the Shinsei Holders
and all Registrable Securities proposed to be registered for the account of any
Lovell Holders and Vestar Holders pursuant to the Piggyback Registration rights
set forth in Section 2.5 hereof, pro rata among
such Shinsei Holders, Lovell Holders and Vestar Holders based on the respective
amounts of Registrable Securities held by such Shinsei Holders, Lovell Holders
and Vestar Holders and available for sale;

 

(ii)               so much of the Company securities
proposed to be registered for the account of the Company; and

 

(iii)            third, all Registrable Securities
proposed to be registered for the account of any other Holders, ratably among
such Holders based on the respective amounts of Registrable Securities held by
such Holders, pursuant to any Piggyback Registration rights, other than the
Piggyback Registration rights set forth in Section 2.5 hereof.

 

Section 2.4                                      Priority
on Demand Registration. If a Demand Registration made pursuant to Section
2.2 involves an Underwritten Offering and the managing underwriter advises the
Company in writing that, in its view, the number of shares of Registrable
Securities requested to be included in such registration exceeds the Maximum
Offering Size, the Company shall include in such registration, in
the priority listed below, up to the Maximum Offering Size:

 

(a)                           If the registration statement filed
pursuant to a Demand Registration is declared effective on or after the 180th
day and before the Second Anniversary,

 

(i)                  first,
all Registrable Securities requested to be registered in the Demand
Registration by any Lovell Holders and Vestar Holders and, if applicable, all
Registrable Securities proposed to be registered for the account of the Shinsei
Holders pursuant to the Piggyback Registration rights set

 

10

 

forth
in Section 2.6 hereof,  pro rata, among such Lovell Holders and Vestar Holders and,
if applicable, the Shinsei Holders based on the respective amounts of
Registrable Securities held by such Lovell Holders and Vestar Holders and, if
applicable, the Shinsei Holders, and available for sale;

 

(ii)               second, so much of the Company
securities proposed to be registered for the account of the Company; and

 

(iii)            third, all Registrable Securities
proposed to be registered for the account of any other Holders, ratably among
such Holders based on the respective amounts of Registrable Securities held by
such Holders, pursuant to any Piggyback Registration rights, other than the
Piggyback Registration rights set forth in Section 2.6 hereof.

 

(b)                          If the registration statement filed
pursuant to a Demand Registration is declared effective any time between the
Second Anniversary and on or before the last day of the 42nd month
following the IPO, and the combined aggregate number of Registrable Securities
held by the Lovell Holders and the Vestar Holders is no less than 50% of the
total number of Registrable Securities held by the Lovell Holders and Vestar
Holders immediately following the redemption contemplated to occur in connection
with the IPO,

 

(i)                  first,
all Registrable Securities requested to be registered in the Demand
Registration by any Lovell Holders and Vestar Holders and, if applicable, all
Registrable Securities proposed to be registered for the account of the Shinsei
Holders pursuant to the Piggyback Registration rights set forth in Section 2.6
hereof, pro rata among such Lovell Holders,
Vestar Holders and the Shinsei Holders based on the respective amounts of
Registrable Securities held by them and available for sale, in such amount that
for every two Registrable Securities requested to be registered by such Lovell
Holder, Vestar Holder or Shinsei Holder and accepted for inclusion in the
Demand Registration, the remaining Holders shall have been accepted for inclusion
in the Demand Registration one Registrable Security requested to be registered
by such Holders; and

 

(ii)               second, any securities proposed to
be registered by the Company or any securities proposed to be registered for
the account of any other persons, with such priorities among them as the
Company shall determine.

 

(c)                           If (x) the registration statement
filed pursuant to a Demand Registration is declared effective any time between
the Second Anniversary and on or before the last day of the 42nd
month following the IPO, and the combined aggregate number of Registrable
Securities held by the Lovell Holders and the Vestar Holders is less than 50%
of the total number

 

11

 

of
Registrable Securities held by the Lovell Holders and Vestar Holders
immediately following the redemption contemplated to occur in connection with
the IPO, or (y) the registration statement pursuant to a Demand Registration is
declared effective after the last day of the 42nd month following
the IPO:

 

(i)                  first,
all Registrable Securities requested to be registered in the Demand
Registration by any Lovell Holders, Vestar Holders, Shinsei Holders and any
other Holder who so requests to have Registrable Securities registered in such
Demand Registration, pro rata, based
on the number of Registrable Securities available for sale (after giving effect
to any transfer restrictions relating to such Registrable Securities) by each
respective Holder; and

 

(ii)               second, any securities proposed to
be registered by the Company or any securities proposed to be registered for
the account of any other persons, with such priorities among them as the
Company shall determine.

 

(d)                          Notwithstanding any provision in
this Section 2.4 or elsewhere in the Agreement, no Registrable Securities
proposed to be registered for the account of the Shinsei Holders pursuant to
the Piggyback Registration rights set forth in Section 2.6 hereof shall be
included in any registration statement prior to the expiration of the restrictions
on transfer applicable to such Registrable Securities.

 

Section 2.5                                      Lovell
Holders and Vestar Holders Piggyback Registration.

 

(a)                           If, subject to the provisions of the
Exchange Agreement governing restrictions on transfer, on or after the 180th
day after the IPO the Company proposes at any time to register any of its
equity securities under the Securities Act (other than a registration on Form
S-8 or S-4, or any successor forms, or a registration that is related to a
Demand Registration made by either the Lovell Holders or the Vestar Holders
which are addressed in Section 2.2 above), whether or not for sale for its own
account, the Company shall each such time give prompt notice at least 15
business days prior to the anticipated filing date of the registration
statement relating to such registration to the Lovell Holders and Vestar
Holders which notice shall set forth the Lovell Holders’ and Vestar Holders’
rights under this Section 2.5 and shall offer the Lovell Holders and Vestar
Holders the opportunity to include in a Piggyback Registration the number of
Registrable Securities of the same class or series as those proposed to be
registered as the Lovell Holders and Vestar Holders may request, subject to the
provisions of this Section 2.5(a) and 2.5(b). 
Upon the request of the Lovell Holders and Vestar Holders made within
seven business days after the receipt of notice from the Company (which request
shall specify the number of Registrable Securities, if any, intended to be
registered by the Lovell Holders and Vestar Holders), the Company shall use its
reasonable best efforts to effect the registration under the Securities Act of
all Registrable Securities that the Company has been so requested to register
by the Holders to the extent necessary to permit the disposition of the

 

12

 

Registrable
Securities so to be registered, provided that (i) if such registration involves
an Underwritten Offering, the Lovell Holders and Vestar Holders must sell their
Registrable Securities to the underwriters selected by the Company on the same
terms and conditions as apply to the Company, as applicable, and (ii) if, at
any time after giving notice of its intention to register any securities
pursuant to this Section 2.5(a) and prior to the effective date of the
registration statement filed in connection with such registration, the Company
shall determine for any reason not to register such securities, the Company
shall give notice to the Lovell Holders and Vestar Holders and, thereupon,
shall be relieved of its obligation to register any Registrable Securities in
connection with such registration.  No
registration effected under this Section 2.5 shall relieve the Company of its
obligations to effect the Shelf Registration to the extent required by Section
2.1 or a Demand Registration to the extent required by Sections 2.2.  There shall be no limitation on the number of
Piggyback Registrations that the Company shall be required to effect under this
Section 2.5; provided, however, that no Piggyback Registration
under this Section 2.5 shall require the Company to effectuate a Shelf
Registration.

 

(b)                          Notwithstanding any provision in
this Section 2.5 or elsewhere in this Agreement, no provision relating to the
registration of Registrable Securities shall be construed as permitting the
Lovell Holders and Vestar Holders to effect a transfer of securities that is
otherwise expressly prohibited by the terms of any applicable agreement between
the Lovell Holders and Vestar Holders and the Company or any of its
subsidiaries.  The Company shall not be
obligated to provide notice or afford Piggyback Registration to the Lovell
Holders and Vestar Holders pursuant to this Section 2.5 unless some or all of
the Lovell Holders’ and Vestar Holders’ Registrable Securities are permitted to
be transferred under the terms of applicable agreements between the Lovell
Holders and Vestar Holders and the Company or any of its subsidiaries.

 

(c)                           At any time prior to the effective
date of the registration statement relating to such registration, the Lovell
Holders and Vestar Holders may revoke such Piggyback Registration request by
providing a notice to the Company revoking such request.

 

(d)                          Notwithstanding any provision in
this Section 2.5 or elsewhere in the Agreement, the Company shall be entitled
to elect to effect the registration under the Securities Act of all of the
Registrable Securities held by the Lovell Holders and Vestar Holders in any
individual Piggyback Registration, subject to the right of the Lovell Holders
and Vestar Holders, in their individual capacities, to revoke all or a portion
of their respective Piggyback Registration request pursuant to Section 2.5(c).

 

(e)                           Notwithstanding any provision in
this Section 2.5 or elsewhere in the Agreement, the provisions of this Section
2.5 shall also apply to all Holders other than the Lovell Holders and Vestar
Holders until the earlier to occur of the effectiveness of a Shelf Registration
pursuant to Section 2.1(a) or the Second Anniversary (the “Other Holder
Piggyback Period”). During the Other Holder Piggyback Period, each such notice
required under this Section 2.5 shall also be given to all Holders other than
the Lovell Holders and Vestar Holders.

 

13

 

Nothing
in this Section 2.5(e) is intended to affect in any respect the rights of the
Vestar Holders or the Lovell Holders under this Section 2.5.

 

Section 2.6                                      Shinsei
Holders Piggyback Registration.

 

(a)                           From and after the IPO Date and
until the later of (i) the Fifth Anniversary, and (ii) such time as no
piggyback rights are held by either the Lovell Holders or the Vestar Holders
pursuant to Section 2.5 of this Agreement, whenever the Company proposes to
register any of its equity securities under the Securities Act (other than a
registration statement on Form S-8 or on Form S-4 or any similar successor
forms thereto), whether for its own account or for the account of one or more
stockholders of the Company, the Company shall each such time give prompt
written notice at least 15 business days prior to the anticipated filing date
of the registration statement relating to such registration to all Shinsei
Holders, which notice shall set forth the Shinsei Holders’ rights under this
Section 2.6 and shall offer the Shinsei Holders the opportunity to include in
such Piggyback Registration the number of Registrable Securities of the same
class or series as those proposed to be registered as the Shinsei Holders may
request, subject to the provisions of Sections 2.6(a) and 2.6(b).  Upon the request of the Shinsei Holders made
within seven (7) business days after the receipt of notice from the Company
(which request shall specify the number of 
Registrable Securities, if any, intended to be registered by the Shinsei
Holders), the Company shall use its reasonable best efforts to effect the
registration under the Securities Act of all Registrable Securities that the
Company has been so requested to register by the Shinsei Holders to the extent
necessary to permit the disposition of the Registrable Securities so to be
registered, provided that (i) if such registration involves an Underwritten
Offering, the Shinsei Holders must sell their Registrable Securities to the
underwriters selected by the Company on the same terms and conditions as apply
to the Company, as applicable, and (ii) if, at any time after giving notice of
its intention to register any securities pursuant to this Section 2.6(a) and
prior to the effective date of the registration statement filed in connection
with such registration, the Company shall determine for any reason not to
register such securities, the Company shall give notice to the Shinsei Holders
and, thereupon, shall be relieved of its obligation to register any Registrable
Securities in connection with such registration.  No registration effected under this Section
2.6 shall relieve the Company of its obligations to effect a Shelf Registration
to the extent required by Section 2.1 or a Demand Registration to the extent
required by Section 2.3. There shall be no limitation on the number of
Piggyback Registrations that the Company shall be required to effect under this
Section 2.6; provided, however, that no Piggyback Registration under this
Section 2.6 shall require the Company to effectuate a Shelf Registration.

 

(b)                                    Notwithstanding
any provision in this Section 2.6 or elsewhere in this Agreement, no provision
relating to the registration of Registrable Securities shall be construed as
permitting the Shinsei Holders to effect a transfer of securities that is
otherwise expressly prohibited by the terms of any applicable agreement between
the Shinsei Holders and the Company or any of its subsidiaries.  The Company shall not be obligated to provide
notice or afford Piggyback Registration to the Shinsei Holders pursuant to this
Section 2.6 unless some or all of the Shinsei Holders’ Registrable Securities
are permitted to be transferred under the terms of applicable agreements
between the Shinsei Holders and the Company or any of its subsidiaries.

 

14

 

(c)           At any time prior to the effective date of the
registration statement relating to such registration, the Shinsei Holders may
revoke such Piggyback Registration request by providing a notice to the Company
revoking such request.

 

(d)           Notwithstanding any provision in this Section 2.6 or
elsewhere in the Agreement, the Company shall be entitled to elect to effect
the registration under the Securities Act of all of the Registrable Securities
held by the Shinsei Holders in any individual Piggyback Registration, subject
to the right of the Shinsei Holders, in their individual capacities, to revoke
all or a portion of their respective Piggyback Registration request pursuant to
Section 2.6(c).

 

Section 2.7             Priority on
Piggyback Registrations.

 

(a)           If a Piggyback Registration (that is not related to a
Demand Registration made by the Lovell Holders, the Vestar Holders or the
Shinsei Holders) involves an Underwritten Offering and the managing underwriter
advises the Company, that, in its view, the number of Registrable Securities
that any eligible Holders intend to include in such registration exceeds the
Maximum Offering Size, the Company shall include in such registration, in the
following priority, up to the Maximum Offering Size:

 

(i)      first, so much of the Company securities proposed to
be registered for the account of the Company

 

(ii)     second, all Registrable Securities requested to be
registered in the Piggyback Registration by the Shinsei Holders, the Lovell
Holders and the Vestar Holders, pro rata, based
on the number of Registrable Securities available for sale (after giving effect
to any transfer restrictions relating to such Registrable Securities); and

 

(iii)    third, all Registrable Securities proposed to be
registered for the account of any other Holders, ratably among such Holders
based on the respective amounts of Registrable Securities held by such Holders
as determined by the Company.

 

Section 2.8             Lock-Up Agreements.
If any registration of Registrable Securities shall be effected in connection
with a Underwritten Offering, neither the Company nor any Holder shall effect
any public sale or distribution, including any sale pursuant to Rule 144, of
any shares of Common Stock or other security of the Company (except as part of
such Underwritten Offering) until the earliest of (i) 180 days following the
effective date of the registration statement in connection with the IPO, (ii)
90 days following other registrations of Registrable Securities pursuant to
this Agreement, (iii) with

 

15

 

respect to the Holders
generally, such shorter time as may be agreed to by the underwriters with
respect to any one Holder, and (iv) such time as members of management agree to
with the underwriters with respect to the public sale or distribution of
securities held by members of management.

 

Section 2.9             Registration
Procedures. Whenever the Company is required to effect a registration
hereunder (or, as applicable, requested to assist in connection with a sale
under a shelf registration statement), the Company shall use its reasonable
best efforts to effect the registration and sale of such Registrable Securities
in accordance with the intended method of disposition thereof as promptly as
practicable, and, in connection with any such request, as applicable:

 

(a)           The Company shall as expeditiously as reasonably
practicable prepare and file with the SEC a registration statement on any form
for which the Company then qualifies or that counsel for the Company shall deem
appropriate and which form shall be available for the sale of the Registrable
Securities to be registered thereunder in accordance with the intended method
of distribution thereof, and use its reasonable best efforts to (i) cause such
filed registration statement to become and remain effective, and (ii) promptly
update such registration statement so that it does not contain an untrue
statement of a material fact or omit to state any material fact required to be
stated therein or necessary to make the statements therein not misleading,
until all of the Registrable Securities included in such registration statement
shall have actually been sold thereunder; provided that, at the request of any
Holder, the intended method of distribution relating to the sale of the
Registrable Securities to be registered thereunder shall provide for individual
Holders to be named as selling stockholders under such registration statement.

 

(b)           Prior to filing a registration statement or prospectus
or any amendment or supplement thereto, the Company shall, if requested,
furnish to each Holder and each underwriter, if any, of the Registrable
Securities covered by such registration statement copies of such registration
statement as proposed to be filed, and thereafter the Company shall furnish to
each Holder and underwriter, if any, such number of copies of such registration
statement, each amendment and supplement thereto (in each case including all
exhibits thereto and documents incorporated by reference therein), the
prospectus included in such registration statement (including each preliminary
prospectus and any summary prospectus) and any other prospectus filed under
Rule 424 or Rule 430A under the Securities Act and such other documents as a
Holder or underwriter may reasonably request in order to facilitate the
disposition of the Registrable Securities owned by such Holder. The Holders
shall have the right to request that the Company modify any information
contained in such registration statement, amendment and supplement thereto
pertaining to the Holders, and the Company shall use its reasonable best
efforts to comply with such request, provided, however, that the Company shall
not have any obligation so to modify any information if the Company reasonably
expects that so doing would cause the prospectus to contain an untrue statement
of a material fact or omit to state any material fact required to be stated
therein or necessary to make the statements therein not misleading.

 

16

 

(c)           After the filing of the registration statement, the
Company shall (i) cause the related prospectus to be supplemented by any
required prospectus supplement, and, as so supplemented, to be filed pursuant
to Rule 424 under the Securities Act, (ii) comply with the provisions of the
Securities Act with respect to the disposition of all Registrable Securities
covered by such registration statement during the applicable period in
accordance with the intended methods of disposition by the Holders thereof set
forth in such registration statement or supplement to such prospectus and (iii)
promptly notify the Holders of any stop order issued or threatened by the SEC
or any state securities commission and take all reasonable best efforts to
prevent the entry of such stop order or to remove it if entered.

 

(d)           The Company shall use its reasonable best efforts to
(i) register or qualify the Registrable Securities covered by such registration
statement under such other securities or “blue sky” laws of such jurisdictions
in the United States as the Holders reasonably (in light of the Holders’
intended plan of distribution) requests and (ii) cause such Registrable
Securities to be registered with or approved by such other governmental
agencies or authorities as may be necessary by virtue of the business and
operations of the Company and do any and all other acts and things that may be
reasonably necessary or advisable to enable a Holder to consummate the
disposition of the Registrable Securities owned by such Holder, provided that
the Company shall not be required to (A) qualify generally to do business in
any jurisdiction where it would not otherwise be required to qualify but for
this Section 2.9(d), (B) subject itself to taxation in any such jurisdiction or
(C) consent to general service of process in any such jurisdiction.

 

(e)           The Company shall immediately notify the Holders, at
any time when a prospectus relating thereto is required to be delivered under
the Securities Act, of the occurrence of an event requiring the preparation of
a supplement or amendment to such prospectus so that, as thereafter delivered
to the purchasers of such Registrable Securities, such prospectus will not
contain an untrue statement of a material fact or omit to state any material
fact required to be stated therein or necessary to make the statements therein
not misleading and promptly prepare and make available to the Holders and file
with the SEC any such supplement or amendment.

 

(f)            The Company shall select an underwriter or
underwriters in connection with any Underwritten Offering; provided that, in
the event of a Demand Registration requested by the Lovell Holders or the
Vestar Holders, such underwriter or underwriters shall be selected by the
Lovell Holders or the Vestar Holders, as the case may be, with the consent of
the Company (which consent shall not be unreasonably withheld). In connection
with any Underwritten Offering, the Company shall enter into customary
agreements (including an underwriting agreement in customary form) and take all
such other actions as are reasonably required in order to expedite or
facilitate the disposition of such Registrable Securities in any such
Underwritten Offering, including, to the extent necessary, the engagement of a “qualified
independent underwriter” in connection with the qualification of the
underwriting arrangements with the FINRA.

 

17

 

(g)           Subject to the execution of confidentiality agreements
satisfactory in form and substance to the Company in the exercise of its good
faith judgment, the Company will give to the Holders, their counsel and
accountants (i) reasonable and customary access to its books and records, that,
in the opinion of the Board are pertinent corporate documents, and (ii) such
opportunities to discuss the business of the Company with its directors,
officers, employees, counsel and the independent public accountants who have
certified its financial statements, as shall be appropriate, in the reasonable
judgment of counsel, to the Holders, to enable them to exercise its due
diligence responsibility.

 

(h)           The Company shall use its reasonable best efforts to
furnish to the Holders and to each such underwriter, if any, a signed
counterpart, addressed to the Holders or such underwriter, of (i) an opinion or
opinions of counsel to the Company and (ii) a comfort letter or comfort letters
from the Company’s independent public accountants, each in customary form and
covering such matters of the kind customarily covered by opinions or comfort
letters, as the case may be, as the Holder and the underwriters reasonably
request.

 

(i)            Each Holder shall promptly furnish in writing to the
Company such information regarding such Holder that is reasonably necessary for
the distribution of the Registrable Securities as the Company may from time to
time reasonably request and such other information regarding such Holder as may
be legally required or advisable in connection with such registration.

 

(j)            Each Holder agrees that, upon receipt of any notice
from the Company of the happening of any event of the kind described in Section
2.9(e), such Holder shall forthwith discontinue disposition of Registrable
Securities pursuant to the registration statement covering such Holder’s
Registrable Securities until such Holder’s receipt of the copies of the
supplemented or amended prospectus contemplated by Section 2.9(e), and, if so
directed by the Company, such Holders shall destroy all copies, other than any
permanent file copies then in such Holder’s possession, of the most recent prospectus
covering such Registrable Securities at the time of receipt of such notice. If
the Company shall give such notice, the Company shall extend the period during
which such registration statement shall be maintained effective (including the
period referred to in Section 2.9(a)) by the number of days during the period
from and including the date of the giving of notice pursuant to Section 2.9(e)
to the date when the Company shall make available to the Holders a prospectus
supplemented or amended to conform with the requirements of Section 2.9(e).

 

(k)           The Company shall use its reasonable best efforts to
list all Registrable Securities covered by such registration statement on any
securities exchange or quotation system on which any of the Registrable Securities
are then listed or traded.

 

(l)            The Company shall have appropriate officers of the
Company (i) prepare and make presentations at any “road shows” and before
analysts and rating agencies, as the case may be, (ii) take other actions to
obtain ratings for any Registrable Securities and (iii)

 

18

 

otherwise use their reasonable best efforts
to cooperate as reasonably requested by the underwriters in the offering,
marketing or selling of the Registrable Securities.

 

(m)          The Company shall use its reasonable best efforts to
take all other steps necessary to effect the registration of Registrable
Securities contemplated hereby.

 

Section 2.10           Registration
Restrictions. Nothing in this Agreement shall be construed as to violate
the restrictions set forth in Section 2.1 and Section 2.6 of the Exchange
Agreement and no registration of Registrable Securities in violation of such
provisions shall be effectuated.

 

Section 2.11           Indemnification by
the Company. In the event of any registration of any securities of the
Company under the Securities Act pursuant to this Article II, the Company will,
and it hereby does, indemnify and hold harmless, to the extent permitted by
law, each Holder, each affiliate of such Holder and its members and managing
members (including any director, officer, affiliate, employee, agent and
controlling person of any of the foregoing, if applicable), each other person
who participates as an underwriter in the offering or sale of such securities
and each other person, if any, who controls such seller or any such underwriter
within the meaning of the Securities Act (collectively, the “Indemnified Parties”), against any and all losses, claims, damages or
liabilities, joint or several, and expenses (including reasonable attorney’s
fees and reasonable expenses of investigation) to which such Indemnified Party
may become subject under the Securities Act, common law or otherwise, insofar
as such losses, claims, damages or liabilities (or actions or proceedings in
respect thereof, whether or not such Indemnified Party is a party thereto)
arise out of or are based upon (i) any untrue statement or alleged untrue
statement of any material fact contained in any registration statement under
which such securities were registered under the Securities Act, any
preliminary, final or summary prospectus contained therein, or any amendment or
supplement thereto, or (ii) any omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein (in the case of a prospectus, in light of the circumstances under which
they were made) not misleading, and the Company will reimburse such Indemnified
Party for any legal or any other expenses reasonably incurred by it in
connection with investigating or defending against any such loss, claim,
liability, action or proceeding; provided, that the Company shall not be liable
to any Indemnified Party in any such case to the extent that any such loss,
claim, damage, liability (or action or proceeding in respect thereof) or
expense arises out of or is based upon any untrue statement or alleged untrue
statement or omission or alleged omission made in such registration statement
or amendment or supplement thereto or in any such preliminary, final or summary
prospectus in reliance upon and in conformity with written information
furnished to the Company with respect to such seller through an instrument duly
executed by such seller specifically stating that it is for use in the preparation
thereof.

 

Section 2.12           Indemnification by
the Holders. The Company may require, as a condition to including any
Registrable Securities in any registration statement filed in accordance with
this Article II, that the Company shall have

 

19

 

received an undertaking
reasonably satisfactory to it from the participating Holders or any underwriter
to indemnify and hold harmless, severally and not jointly, the Company and all
other prospective sellers of Registrable Securities with respect to any untrue
statement or alleged untrue statement in or omission or alleged omission from
such registration statement, any preliminary, final or summary prospectus
contained therein, or any amendment or supplement, if such untrue statement or
alleged untrue statement or omission or alleged omission was made in reliance
upon and in conformity with written information furnished to the Company with
respect to such seller through an instrument duly executed by such seller or underwriter
specifically stating that it is for use in the preparation of such registration
statement, preliminary, final or summary prospectus or amendment or supplement,
or a document incorporated by reference into any of the foregoing. Such
indemnity shall remain in full force and effect regardless of any investigation
made by or on behalf of the Company or the Holders, or any of their respective
affiliates, directors, officers or controlling persons and shall survive the
transfer of such securities by such person. In no event shall the liability of
the Holders hereunder be greater in amount than the dollar amount of the
proceeds received by the Holders upon the sale of the Registrable Securities
giving rise to such indemnification obligation.

 

Section 2.13           Conduct of
Indemnification Proceedings. Promptly after receipt by an Indemnified Party
hereunder of written notice of the commencement of any action or proceeding
with respect to which a claim for indemnification may be made pursuant to this
Article II, such Indemnified Party will, if a claim in respect thereof is to be
made against an indemnifying party, give written notice to the latter of the
commencement of such action; provided, that the failure of the Indemnified
Party to give notice as provided herein shall not relieve the indemnifying
party of its obligations under this Article II, except to the extent that the
indemnifying party is actually prejudiced by such failure to give notice. In
case any such action is brought against an Indemnified Party, unless in such
Indemnified Party’s reasonable judgment a conflict of interest between such
Indemnified Party and indemnifying parties may exist in respect of such claim,
the indemnifying party will be entitled to participate in and to assume the
defense thereof, jointly with any other indemnifying party similarly notified
to the extent that it may wish, with counsel reasonably satisfactory to such
Indemnified Party, and after notice from the indemnifying party to such
Indemnified Party of its election so to assume the defense thereof, the
indemnifying party will not be liable to such Indemnified Party for any legal
or other expenses subsequently incurred by the latter in connection with the
defense thereof other than reasonable costs of investigation. No indemnifying
party will consent to entry of any judgment or enter into any settlement which
does not include as an unconditional term thereof, the giving by the claimant
or plaintiff to such Indemnified Party of a release from all liability in
respect to such claim or litigation.

 

Section 2.14           Contribution. If
the indemnification provided for in this Article II from the indemnifying party
is unavailable to an Indemnified Party hereunder in respect of any losses,
claims, damages, liabilities or expenses referred to herein, then the
indemnifying party, in lieu of indemnifying such Indemnified Party, shall
contribute to the amount paid or payable by such Indemnified Party as a result
of such losses, claims, damages, liabilities or expenses in such proportion as
is appropriate to reflect the relative fault of the indemnifying party and
Indemnified Parties in connection with

 

20

 

the actions which resulted in
such losses, claims, damages, liabilities or expenses, as well as any other
relevant equitable considerations. The relative fault of such indemnifying
party and Indemnified Parties shall be determined by reference to, among other
things, whether any action in question, including any untrue or alleged untrue
statement of a material fact or omission or alleged omission to state a
material fact, has been made by, or relates to information supplied by, such
indemnifying party or Indemnified Parties, and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such
action. The amount paid or payable by a party under this Section 2.14 as a
result of the losses, claims, damages, liabilities and expenses referred to
above shall be deemed to include any legal or other fees or expenses reasonably
incurred by such party in connection with any investigation or proceeding. In
no event shall the liability of the Holders hereunder be greater in amount than
the dollar amount of the proceeds received by the Holders upon the sale of the
Registrable Securities giving rise to such indemnification obligation.

 

The parties hereto agree that it would not be
just and equitable if contribution pursuant to this Section 2.14 were
determined by pro rata allocation or by any other method of allocation which
does not take account of the equitable considerations referred to in the
immediately preceding paragraph. No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation.

 

Section 2.15           Underwritten
Offering

 

(a)           A Holder may not participate in any Underwritten
Offering hereunder unless such Holder (A) agrees to sell its securities on the
basis provided in any underwriting arrangements approved by the Lovell Holders
and Vestar Holders with respect to any Underwritten Offering pursuant to
Section 2.2, or by the Shinsei Holders with respect to any Underwritten
Offering pursuant to Section 2.3, or by the Company with respect to any
Underwritten Offering pursuant to Sections 2.5 or 2.6 and (B) completes and
executes all questionnaires, powers of attorney, indemnities, underwriting
agreements and other documents reasonably required under the terms of such
underwriting arrangements and the provisions of this Agreement in respect of
registration rights.

 

(b)           If Registrable Securities are to be sold in a
Underwritten Offering, the Company agrees to include in the registration
statement, or in the case of a Shelf Registration, a prospectus supplement, to
be used all such information as may be reasonably requested by the underwriters
for the marketing and sale of such Registrable Securities.

 

Section 2.16           Other
Indemnification. Indemnification similar to that specified herein (with
appropriate modifications) shall be given by the Company and a Holder
participating therein with respect to any required registration or

 

21

 

other qualification of
securities under any federal or state law or regulation or Governmental
Authority other than the Securities Act.

 

Section 2.17           Rule 144
Information/Exchange Act Reporting. With (i) a view to making available the
benefits of certain rules and regulations of the SEC which may at any time permit
the sale of the Registrable Securities to the public without registration, and
(ii) to keep any registration statement on Form S-3 filed pursuant hereto
effective, the Company agrees to:  (a)
make and keep public information available, as those terms are understood and
defined in Rule 144 under the Securities Act; (b) file with the SEC in a timely
manner all reports and other documents required of the Company under the
Securities Act and the Exchange Act; and (c) furnish to each Holder of
Registrable Securities forthwith upon request a written statement by the
Company as to its compliance with the reporting requirements of Rule 144 and of
the Securities Act and the Exchange Act, a copy of the most recent annual or
quarterly report of the Company, and such other reports and documents so filed
by the Company as such Holder may reasonably request in availing itself of any
rule or regulation of the SEC allowing such Holder to sell any Registrable
Securities without registration.

 

Section 2.18           No Transfer of Registration
Rights. Unless the Lovell Holders or the Vestar Holders transfer,
respectively, all or any portion of their rights as beneficial owners of New
Class A Units and Class B Shares to another person or an affiliate in
accordance with the terms of the LLC Agreement, or the Shinsei Holders transfer
all or any portion of their rights as beneficial owners of Class A Shares to
another person or an affiliate in accordance with the terms of the Stockholders
Agreement, none of the rights of the Holders under this Article II shall be
assignable by any Holder to any person acquiring securities.

 

Section 2.19           Parties in Interest.
Each Holder shall be entitled to receive the benefits of this Agreement and
shall be bound by the terms and provisions of this Agreement by reason of its
election to participate in a registration under this Article II. To the extent
Registrable Securities are effectively transferred in accordance with Section
2.18, the transferee of such Registrable Securities shall be entitled to receive
the benefits of this Agreement and shall be bound by the terms and provisions
of this Agreement upon becoming bound hereby pursuant to Section 3.1(b).

 

Section 2.20           Mergers,
Recapitalizations, Exchanges or Other Transactions Affecting Registrable Securities.
The provisions of this Agreement shall apply to the full extent set forth
herein with respect to the Registrable Securities, to any and all securities or
capital stock of the Company or any successor or assign of any such person
(whether by merger, amalgamation, consolidation, sale of assets or otherwise)
that may be issued in respect of, in exchange for, or in substitution of such
Registrable Securities, by reason of any dividend, split, issuance, reverse
split, combination, recapitalization, reclassification, merger, amalgamation,
consolidation or otherwise.

 

Section 2.21           Registration
Expenses. The Company shall pay all Registration Expenses promptly upon
request for payment or reimbursement therefore in connection with any

 

22

 

registration, request for
registration, or Underwritten Offering of Registrable Securities hereunder. The
obligation to pay the Registration Expenses shall apply irrespective of whether
a registration, once properly demanded, becomes effective, is delayed,
withdrawn or suspended, or in the case of an Underwritten Offering is
consummated.

 

Section 2.22           No Inconsistent
Agreements. The Company has not and shall not enter into any agreement with
respect to the Company’s securities that is inconsistent with the rights
granted to the Holders under this Agreement or that otherwise conflicts with
the provisions hereof. The Company represents and warrants that it is not a
party to, or otherwise subject to, any other agreement granting registration
rights to any other Person with respect to any Common Stock or Common Stock
equivalents. Unless otherwise consented to in writing by holders of a majority
of the Registrable Securities held by each of (i) the Vestar Holders, (ii) the
Lovell Holders and (iii) the Shinsei Holders, the following terms shall apply
to any grant by the Company to any person (an “Other Demanding Party”) of any
right to initiate (an “Other Demand Right”) the registration of any Common
Stock or Common Stock equivalents (a “Registration”):

 

(i)      no Other
Demand Right shall be granted that will permit an Other Demanding Party the
right to demand a Registration at any time prior to the date that is eighteen
months after the IPO;

 

(ii)     in
connection with any Other Demand Right the Vestar Holders, the Lovell Holders
and the Shinsei Holders will have the right to piggyback on any such
Registration and if a Registration pursuant to an Other Demand Right involves
an Underwritten Offering and for what ever reason the number of shares requested
to be included in such registration exceeds the Maximum Offering Size then the
Vestar Holders, the Lovell Holders and the Shinsei Holders shall be given equal
priority on a pro rata basis based on the number of shares held by such persons
and available for sale in such sale with the Other Demanding Party; and

 

(iii)    if the
Company so elects, the Other Demanding Party may be provided with the right to
piggyback on any Demand Registration pursuant to Section 2.2 hereof and/or
Section 2.3 hereof and if any such Registration involves an Underwritten
Offering and for whatever reason the number of shares requested to be included
in such registration exceeds the Maximum Offering Size then the Other Demanding
Party shall be given equal priority on a pro rata basis based on the number of
shares held by such persons and available for sale in such sale with the “other
Holders” or “other persons” pursuant to Section 2.3(d)(iii), 2.4(a)(iii),
2.4(b)(ii) or 2.4(c)(ii) as applicable.

 

23

 

ARTICLE III

MISCELLANEOUS

 

Section 3.1             Term of the
Agreement; Termination of Certain Provisions.

 

(a)           The term of this Agreement shall continue until such
time as no Registrable Securities are held by any Holder, except that Sections 2.11,
2.12, 2.13, 2.14 and Section 3.3 shall survive.

 

(b)           Unless this Agreement is theretofore terminated
pursuant to Section 3.1(a) hereof, each Holder shall be bound by the provisions
of this Agreement with respect to any of its Registrable Securities until such
time as such Holder ceases to hold any Registrable Securities. Thereafter, such
Holder shall no longer be bound by the provisions of this Agreement.

 

Section 3.2             Amendments; Waiver.

 

(a)           Subject to the limitations set forth in Section
3.2(b), the provisions of this Agreement may be amended only by the holders of
a majority of the Registrable Securities.

 

(b)           Any amendment of this Agreement that may adversely
affect the rights of the Lovell Holders, the Vestar Holders or the Shinsei
Holders shall require the approval of a majority of each of the Lovell Holders,
Vestar Holders and the Shinsei Holders, so adversely affected, respectively.

 

(c)           In addition to any other vote or approval that may be
required under this Section 3.2, any amendment of this Agreement that has the
effect of changing the obligations of the Company hereunder to make such
obligations materially more onerous to the Company shall require the approval
of the Company.

 

(d)           No provision of this Agreement may be waived except by
an instrument in writing executed by the party against whom the waiver is to be
effective.

 

Section 3.3             Governing Law.
THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE INTERNAL SUBSTANTIVE LAWS OF THE STATE OF NEW YORK
WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW OR

 

24

 

CONFLICTS
OF LAW PRINCIPLES ( OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF
THE STATE OF NEW YORK).

 

Section 3.4             Notices.

 

(a)           Any communication, demand or notice to be given
hereunder will be duly given (and shall be deemed to be received) when
delivered in writing by hand or first class mail or by telecopy to a party at
its address as indicated below:

 

If to the Company,

 

Duff & Phelps Corporation 

55 East 52nd Street

New York, NY 10055

Attention: General Counsel 

Fax: (212) 450-2801

 

with a copy (which shall not constitute
notice to the Company) to:

 

Skadden, Arps, Slate, Meagher & Flom LLP

Four Times Square

New York, New York 10036

Telephone: (212) 735-3000

Facsimile: (212) 735-2000

Attn: David J. Goldschmidt, Esq.

 

If to a Holder,

 

to the address and facsimile set forth in the
records of the Company.

 

(b)           Unless otherwise provided to the contrary herein, any
notice which is required to be given in writing pursuant to the terms of this
Agreement may be given by telecopy.

 

Section 3.5             Severability. If
any provision of this Agreement is finally held to be invalid, illegal or
unenforceable, (a) the remaining terms and provisions hereof shall be
unimpaired and (b) the invalid or unenforceable term or provision shall be
deemed replaced by a term or provision that is valid and enforceable and that
comes closest to expressing the intention of the invalid or unenforceable term
or provision.

 

Section 3.6             Specific
Performance. Each party hereto acknowledges that the remedies at law of the
other parties for a breach or threatened breach of this Agreement would be
inadequate and, in recognition of this fact, any part to this Agreement,
without posting any bond, and in addition to all other remedies that may be
available, shall, subject to Section 3.3, be entitled to obtain equitable
relief in the form of specific performance, a temporary restraining order, a
temporary or permanent injunction or any other equitable remedy that may be
then available.

 

25

 

Section 3.7             Assignment;
Successors. This Agreement shall be binding upon and inure to the benefit
of the respective legatees, legal representatives, successors and assigns of
each Holder; provided, however, that a Holder may not assign this Agreement or
any of his rights or obligations hereunder, except pursuant to Section 2.18,
and any purported assignment in breach hereof by a Holder shall be void; and
provided further that no assignment of this Agreement by the Company or to a
successor of the Company (by operation of law or otherwise) shall be valid
unless such assignment is made to a person which succeeds to the business of
such person substantially as an entirety.

 

Section 3.8             No Third-Party
Rights. Other than as expressly provided herein, nothing in this Agreement
will be construed to give any person other than the parties to this Agreement
any legal or equitable right, remedy, or claim under or with respect to this
Agreement or any provision of this Agreement. This Agreement and all of its
provisions and conditions are for the sole and exclusive benefit of the parties
to this Agreement and their successors and assigns.

 

Section 3.9             Section Headings.
The headings of sections in this Agreement are provided for convenience only
and will not affect its construction or interpretation.

 

Section 3.10           Execution in
Counterparts. This Agreement may be executed in any number of counterparts,
each of which shall be deemed an original, but all such counterparts shall
together constitute but one and the same instrument.

 

26

 

IN WITNESS WHEREOF, the parties hereto have
duly executed or caused to be duly executed this Agreement as of the dates
indicated.

 

	
   

  	
   

  	
  DUFF & PHELPS CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  DUFF & PHELPS
  ACQUISITIONS, LLC

  
	
   

  	
   

  	
  on behalf of the Holders

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  LM DUFF HOLDINGS, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  LOVELL MINNICK EQUITY
  PARTNERS LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  VESTAR CAPITAL PARTNERS IV,
  L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

 

	
   

  	
   

  	
  VESTAR/D&P HOLDINGS LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SHINSEI BANK, LIMITED

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:Exhibit 10.6

 

FORM OF

 

TAX RECEIVABLE AGREEMENT

 

This TAX RECEIVABLE AGREEMENT (as amended
from time to time, this “Agreement”), dated as of             , 2007, is hereby entered into by
and among Duff & Phelps Corporation, a Delaware corporation (the “Corporation”),
Duff & Phelps Acquisitions, LLC, a Delaware limited liability
company (“DPA”), and each of the undersigned parties hereto identified
as “Members.”

 

RECITALS

 

WHEREAS, the Members hold member interests (“Units”)
in DPA, which is treated as a partnership for United States federal income tax
purposes;

 

WHEREAS, the Corporation is the managing
member of, and holds and will hold Units in, DPA; 

 

WHEREAS, the Corporation will be entitled to
depreciation, amortization and other recovery of cost or basis for Tax purposes
in respect of the IPO Date Intangible Assets (as defined below); 

 

WHEREAS, as a result of the Members agreeing
to hold Units rather than transferring all of their Units in exchange for Class
A Shares (as defined below), the Corporation will incur significantly lower tax
liabilities on an ongoing basis with respect to the operations of DPA;

 

WHEREAS, the Units held by the Members are
exchangeable for Class A common stock (the “Class A Shares”) of the
Corporation;

 

WHEREAS, DPA and each of its direct and
indirect subsidiaries treated as a partnership for United States federal income
tax purposes will have in effect an election under Section 754 of the United
States Internal Revenue Code of 1986, as amended (the “Code”), for each
Taxable Year (as defined below) in which an exchange of Units for Class A
Shares occurs, which election is intended to result in an adjustment to the tax
basis of the assets owned by DPA and such subsidiaries (solely with respect to
the Corporation) at the time (such time, the 

 

 

“Exchange
Date”) of an exchange of Units for Class A Shares or any other acquisition
of Units for cash or otherwise (collectively, an “Exchange”)  by reason of such Exchange and the payments
under this Agreement;

 

WHEREAS, the contribution of proceeds by the
Corporation to DPA and the use of such proceeds to redeem a number of New Class
A Units, all pursuant to that certain Reorganization Agreement, dated as of
April 9, 2007, among DPA and the other parties named therein (the restructuring
transaction of DPA contemplated therein, the “Reorganization”), shall be
treated as an Exchange for all purposes of this Agreement; 

 

WHEREAS, the income, gain, loss, expense and
other Tax (as defined below) items of (i) the Corporation, as a member of DPA (and
in respect of each of DPA’s direct and indirect subsidiaries treated as a partnership
for United States federal income tax purposes), with respect to the IPO Date
Intangible Assets and the Specified Assets, may be affected by the existing Tax
basis of the IPO Date Intangible Assets and by the Basis Adjustment (defined
below) with respect to the IPO Date Intangible Assets and the Specified Assets and
(ii) the Corporation may be affected by the Imputed Interest (as defined
below); and

 

WHEREAS, the parties to this Agreement desire
to make certain arrangements with respect to the actual or deemed effect of the
Tax basis of the IPO Date Intangible Assets, the Basis Adjustment and the Imputed
Interest on the liability for Taxes of the Corporation.

 

NOW, THEREFORE, in consideration of the
foregoing and the respective covenants and agreements set forth herein, and
intending to be legally bound hereby, the parties hereto agree as follows:

 

ARTICLE I

DEFINITIONS

 

Definitions. As used
in this Agreement, the terms set forth in this Article I shall have the
following meanings (such meanings to be equally applicable to both the singular
and plural forms of the terms defined).

 

“Advisory Firm” means Skadden, Arps,
Slate, Meagher & Flom LLP, RSM McGladrey, any “big four” accounting firm or
any other law firm that is nationally recognized as being expert in Tax matters
and that is agreed to by the Board of Directors of the Corporation.

 

“Advisory Firm Letter” shall mean a
letter from the Advisory Firm stating that the relevant schedule, notice or
other information to be provided by the Corporation to the

 

2

 

Exchanging
Member and all supporting schedules and work papers were prepared in a manner
consistent with the terms of this Agreement and, to the extent not expressly
provided in this Agreement, on a reasonable basis in light of the facts and law
in existence on the date such schedule, notice or other information is
delivered to the Exchanging Member.

 

“Affiliate” means, with respect to any
Person, any other Person that directly or indirectly, through one or more
intermediaries, Controls, is Controlled by, or is under common Control with,
such first Person.  

 

“Agreed Rate” means LIBOR plus 100
basis points.

 

“Agreement” is defined in the preamble
of this Agreement.

 

“Amended Schedule” is defined in
Section 2.04(b) of this Agreement.

 

“Amount Realized” means, in respect of
an Exchange by an Exchanging Member, the amount that is deemed for purposes of
this Agreement to be the amount realized by the Exchanging Member on the
Exchange, which shall be the sum of (i) the Market Value of the
Class A Shares, the amount of cash and the amount or fair market value of
other consideration transferred to the Exchanging Member in the Exchange and
(ii) the Share of Liabilities attributable to the Units Exchanged.  The amount realized by an Exchanging Member,
as so determined, may differ from the amount realized by the Exchanging Member
for purposes of Section 1001 of the Code.

 

“Basis Adjustment” means the deemed adjustment
to the Tax basis of an IPO Date Intangible Asset or a Specified Asset, in each
case, arising in respect of an Exchange, as calculated under Section 2.01 of
this Agreement, under the principles of Section 732 of the Code (in a situation
where, as a result of one or more Exchanges, DPA becomes an entity that is
disregarded as separate from its owner for tax purposes) or Sections 743(b) and
754 of the Code (including in situations where, following an Exchange, DPA
remains in existence as an entity for tax purposes) and, in each case,
comparable sections of state, local and foreign Tax laws.  Notwithstanding any other provision of this
Agreement, the amount of any Basis Adjustment resulting from an Exchange of one
or more Units shall be determined without regard to any Pre-Exchange Transfer
of such Units and as if any such Pre-Exchange Transfer had not occurred.

 

A “Beneficial Owner” of a security is a Person who directly or
indirectly, through any contract, arrangement, understanding, relationship or
otherwise, has or shares: (i) voting power, which includes the power to vote,
or to direct the voting of, such security and/or (ii) investment power, which
includes the power to dispose of, or to direct the disposition of, such security.  The terms “Beneficially Own” and “Beneficial
Ownership” shall have correlative meanings.

 

3

 

“Board” means the board of directors of the Corporation.  

 

“Business Day” means Monday through
Friday of each week, except that a legal holiday recognized as such by the
government of the United States of America or the State of New York shall not
be regarded as a Business Day.

 

“Change of Control” means the
occurrence of any of the following events:

 

(i)                                     any Person or any group of Persons
acting together which would constitute a ”group” for purposes of Section
13(d) of the Securities and Exchange Act of 1934, or any successor
provisions thereto, excluding a group of Persons, which, if it
includes any Original Member or any of such Original Member’s Affiliates,
includes all Original Members then employed by DPA or any of DPA’s Affiliates,
is or becomes the Beneficial Owner, directly or indirectly, of securities of
the Corporation representing more than fifty percent (50%) of the combined
voting power of the Corporation’s then outstanding voting securities; or

 

(ii)                                  the following individuals cease for
any reason to constitute a majority of the number of directors of the Corporation
then serving: individuals who, on the date of the consummation of the initial
public offering of Class A Shares, constitute the Board and any new director
(other than a director whose initial assumption of office is in connection with
an actual or threatened election contest, including but not limited to a
consent solicitation, relating to an election of directors of the Corporation) whose
appointment or election by the Board or nomination for election by the Corporation’s
shareholders 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
the consummation of the initial public offering of Class A Shares or whose
appointment, election or nomination for election was previously so approved or
recommended by the directors referred to in this clause (ii); or

 

(iii)                               there is consummated a merger or
consolidation of the Corporation with any other corporation or other entity,
and, immediately after the consummation of such merger or consolidation, either
(x) the Board immediately prior to the merger or consolidation does not
constitute at least a majority of the board of directors of the company
surviving the merger or, if the surviving company is a subsidiary, the ultimate
parent thereof, or (y) all of the Persons who were the respective Beneficial
Owners of the voting securities of the Corporation immediately prior to such
merger or consolidation do not Beneficially Own, directly or indirectly, more
than 50% of the combined voting power of the then outstanding voting securities
of the Person resulting from such merger or consolidation; or

 

4

 

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

 

Notwithstanding the foregoing, except with
respect to clause (ii) and clause (iii)(x) above, a “Change in Control” shall
not be deemed to have occurred by virtue of the consummation of any transaction
or series of integrated transactions immediately following which the record
holders of the shares of the Corporation immediately prior to such transaction
or series of transactions continue to have  substantially
the same proportionate ownership in an entity which owns all or substantially
all of the assets of the Corporation immediately following such transaction or
series of transactions.

 

“Class A Shares” is defined in the
Recitals of this Agreement.

 

“Code” is defined in the Recitals of
this Agreement.

 

“Control” means the possession, direct
or indirect, of the power to direct or cause the direction of the management
and policies of a Person, whether through ownership of voting securities, by
contract or otherwise. 

 

“Corporation” is defined in the
Preamble of this Agreement.

 

“Corporation Return” means the United
States federal, state, local and/or foreign Tax Return, as applicable, of the
Corporation filed with respect to Taxes of any Taxable Year.

 

“Cumulative Net Realized Tax Benefit”
for a Taxable Year means the cumulative amount of Realized Tax Benefits for all
Taxable Years of the Corporation, up to and including such Taxable Year, net of
the cumulative amount of Realized Tax Detriments for the same period.  The Realized Tax Benefit and Realized Tax
Detriment for each Taxable Year shall be determined based on the most recent
Tax Benefit Schedule or Amended Schedule, if any, in existence at the time of
such determination.

 

“Default Rate” means LIBOR plus 500
basis points.

 

5

 

“Determination” shall have the meaning
ascribed to such term in Section 1313(a) of the Code or similar provision of
state, local and foreign Tax law, as applicable, or any other event (including
the execution of an IRS Form 870-AD) that finally and conclusively establishes
the amount of any liability for Tax.

 

“Dispute” has the meaning set forth in
Section 7.08(a).

 

“Early Termination Date” means the
date of an Early Termination Notice for purposes of determining the Early Termination
Payment.

 

“Early Termination Notice” is defined
in Section 4.02 of this Agreement.

 

“Early Termination Schedule” is
defined in Section 4.02 of this Agreement.

 

“Early Termination Payment” is defined
in Section 4.03(b) of this Agreement.

 

“Early Termination Rate” means the
lesser of (i) 6.5% and (ii) LIBOR plus 100 basis points.

 

“Exchange” is defined in the Recitals
of this Agreement, and “Exchanged” and “Exchanging” shall have correlative
meanings.

 

“Exchange Basis Schedule” is defined
in Section 2.02 of this Agreement.

 

“Exchange Date” is defined in the
Recitals of this Agreement.

 

“Exchange Payment” is defined in
Section 5.01.

 

“Exchanging Member” means a Member
that Exchanges some or all of its Units.

 

“Expert” is defined in Section 7.09 of
this Agreement.

 

“Hypothetical Tax Liability” means,
with respect to any Taxable Year, the liability for Taxes of the Corporation
(or DPA, but only with respect to Taxes imposed on DPA and allocable to the
Corporation) using the same methods, elections, conventions and similar
practices used on the relevant Corporation Return, but using the Non-Stepped Up
Tax Basis

 

6

 

instead of the
Tax basis reflecting the Basis Adjustments of the IPO Date Intangible Assets
and the Specified Assets and excluding any deduction attributable to Imputed
Interest.

 

“Imputed Interest” shall mean any
interest imputed under Section 1272, 1274 or 483 or other provision of the Code
and any similar provision of state, local and foreign Tax law with respect to
the Corporation’s payment obligations under this Agreement.

 

“IPO” means the initial public
offering of Class A Shares by the Corporation.

 

“IPO Date” means the date on which the
Corporation contributes to DPA the net proceeds received by the Corporation in
connection with the IPO.

 

“IPO Date Intangible Asset” means each
asset that is held by DPA, or by any of its direct or indirect subsidiaries
treated as a partnership or disregarded entity for purposes of the applicable
Tax, immediately prior to the IPO Date and is described in Section 197(d) of
the Code. 

 

“IRS” means the United States Internal
Revenue Service.

 

“LIBOR” means for each month (or
portion thereof) during any period, an interest rate per annum equal to the
rate per annum reported, on the date two days prior to the first day of such
month, on the Telerate Page 3750 (or if such screen shall cease to be publicly
available, as reported on Reuters Screen page “LIBO” or by any other publicly
available source of such market rate) for London interbank offered rates for United
States dollar deposits for such month (or portion thereof).

 

“LLC Agreement” means, with respect to
DPA, the Third Amended and Restated Limited Liability Company Agreement of DPA.

 

“Market Value” shall mean the closing
price of the Class A Shares on the applicable Exchange Date on the national
securities exchange or interdealer quotation system on which such Class A
Shares are then traded or listed, as reported by the Wall Street
Journal; provided that if the closing price is not reported by the Wall Street Journal for the applicable Exchange Date, then
the Market Value shall mean the closing price of the Class A Shares on the
Business Day immediately preceding such Exchange Date on the national
securities exchange or interdealer quotation system on which such Class A
Shares are then traded or listed, as reported by the Wall Street
Journal; provided further, that if the Class A Shares are not then
listed on a National Securities Exchange or Interdealer Quotation System, “Market
Value” shall mean the cash consideration paid for Class A Shares, or the fair
market value of the other property delivered for Class A Shares, as determined
by the Board of Directors of the Corporation in good faith.

 

7

 

“Material Objection Notice” has the
meaning set forth in Section 4.02.

 

“Members” means the parties hereto,
other than the Corporation, and each other Person who from time to time
executes a Joinder Agreement in the form attached hereto as Exhibit A. 

 

“Non-Stepped Up Tax Basis” means, with
respect to any asset at any time, the Tax basis that such asset would have had
at such time if no Basis Adjustment had been made, provided that the
Non-Stepped Up Tax Basis of an IPO Date Intangible Asset shall be assumed to be
zero.  

 

“Objection Notice” has the meaning set
forth in Section 2.04(a).

 

“Original Members” means the members
of DPA on the date of, but immediately preceding, the initial public offering
of Class A Shares.  

 

“Payment Date” means any date on which
a payment is required to be made pursuant to this Agreement.

 

“Person” means any individual,
corporation, firm, partnership, joint venture, limited liability company,
estate, trust, business association, organization, governmental entity or other
entity.

 

“Pre-Exchange Transfer” means any
transfer (including upon the death of a Member) of one or more Units (i) that
occurs prior to an Exchange of such Units, and (ii) to which Section 743(b) of
the Code applies.

 

“Realized Tax Benefit” means, for a
Taxable Year and for all Taxes collectively, the net excess, if any, of the Hypothetical
Tax Liability over the “actual” liability for Taxes of the Corporation (or DPA,
but only with respect to Taxes imposed on DPA and allocable to the Corporation
for such Taxable Year), such “actual” liability to be computed with the
adjustments described in this Agreement. 
If all or a portion of the actual liability for Taxes of the Corporation
(or DPA, but only with respect to Taxes imposed on DPA and allocable to the
Corporation for such Taxable Year) for the Taxable Year arises as a result of
an audit by a Taxing Authority of any Taxable Year, such liability shall not be
included in determining the Realized Tax Benefit unless and until there has been
a Determination.

 

“Realized Tax Detriment” means, for a
Taxable Year and for all Taxes collectively, the net excess, if any, of the “actual”
liability for Taxes of the Corporation (or DPA,

 

8

 

but only with respect to Taxes imposed on DPA
and allocable to the Corporation for such Taxable Year), such “actual”
liability to be computed with the adjustments described in this Agreement, over
the Hypothetical Tax Liability for such Taxable Year.  If all or a portion of the actual liability
for Taxes of the Corporation (or DPA, but only with respect to Taxes imposed on
DPA and allocable to the Corporation for such Taxable Year) for the Taxable
Year arises as a result of an audit by a Taxing Authority of any Taxable Year,
such liability shall not be included in determining the Realized Tax Detriment
unless and until there has been a Determination.

 

“Reconciliation Dispute” has the
meaning set forth in Section 7.09.

 

“Reconciliation Procedures” shall mean
those procedures set forth in Section 7.09 of this Agreement.

 

“Reorganization” has the meaning set
forth in the Recitals hereto. 

 

“Schedule” means any Exchange Basis
Schedule or Tax Benefit Schedule and the Early Termination Schedule.

 

“Senior Obligations” is defined in Section
5.01 of this Agreement.

 

“Share of Base Liabilities”, as to any
Unit at the time of an Exchange, means the product of (i) the lesser of
(x) the aggregate amount of the liabilities of DPA, for purposes of
Section 752 and Section 1001 of the Code, at the time of the Exchange
and (y) the aggregate amount of the liabilities of DPA, for purposes of
Section 752 and Section 1001 of the Code, immediately prior to the
IPO Date and (ii) the percentage share of the Unit in the liabilities of
DPA immediately prior to the IPO Date, as set out on Annex A to this Agreement;
provided, however, that for purposes of this definition, the amount of
the liabilities of DPA at the time of the Exchange shall be increased by any
reduction in the liabilities of DPA at or after the time of the IPO arising
from the use of the proceeds of the IPO, or any other contribution to the
capital of DPA, to fund or repay liabilities.

 

“Share of Excess Liabilities”, as to
any Unit at the time of an Exchange, means the product of (i) the excess,
if any, of (x) the aggregate amount of the liabilities of DPA, for
purposes of Section 752 and Section 1001 of the Code, at the time of
the Exchange over (y) the aggregate amount of the liabilities of DPA, for
purposes of Section 752 and Section 1001 of the Code, immediately
prior to the IPO Date and (ii) the percentage share of the Unit in the
profits of DPA at the time of the Exchange; provided, however, that for
purposes of this definition, the amount of the liabilities of DPA at the time
of the Exchange shall be increased by any reduction in the liabilities of DPA
at or after the time of the IPO arising from the use of the proceeds of the
IPO, or any other contribution to the capital of DPA, to fund or repay
liabilities.

 

9

 

“Share of Liabilities”, as to any Unit
at the time of an Exchange, means the sum of (i) the Unit’s Share of Base
Liabilities and (ii) the Unit’s Share of Excess Liabilities, if any.

 

“Specified Asset” means each asset,
other than an IPO Date Intangible Asset, that is held by DPA, or by any of its
direct or indirect subsidiaries treated as a partnership or disregarded entity
for purposes of the applicable Tax, at the time of an Exchange. 

 

“Subsidiaries” means, with respect to
any Person, as of any date of determination, any other Person as to which such
Person, owns, directly or indirectly, or otherwise controls more than 50% of
the voting shares or other similar interests or the sole general partner
interest or managing member or similar interest of such Person.

 

“Tax Benefit Payment” is defined in
Section 3.01(b) of this Agreement.

 

“Tax Benefit Schedule” is defined in
Section 2.03 of this Agreement.

 

“Tax Return” means any return,
declaration, report or similar statement required to be filed with respect to
Taxes (including any attached schedules), including, without limitation, any
information return, claim for refund, amended return and declaration of
estimated Tax.

 

“Taxable Year” means a taxable year of
the Corporation as defined in Section 441(b) of the Code or comparable section
of state, local or foreign Tax law, as applicable (and, therefore, for the
avoidance of doubt, may include a period of less than 12 months for which a Tax
Return is prepared), ending on or after the IPO Date.

 

“Taxes” means any and all United
States federal, state, local and foreign taxes, assessments or similar charges
that are based on or measured with respect to net income or profits, whether as
an exclusive or on an alternative basis, and any interest related to such Tax.

 

“Taxing Authority” shall mean any
domestic, foreign, federal, national, state, county or municipal or other local
government, any subdivision, agency, commission or authority thereof, or any
quasi-governmental body exercising any taxing authority or any other authority
exercising Tax regulatory authority.

 

“Treasury Regulations” means the
final, temporary and proposed regulations under the Code promulgated from time
to time (including corresponding provisions and succeeding provisions) as in
effect for the relevant taxable period.

 

“Units” is defined in the Recitals of
this Agreement.

 

10

 

“Valuation Assumptions” shall mean, as
of an Early Termination Date, the assumptions that (1) in each Taxable Year
ending on or after such Early Termination Date, the Corporation will have
taxable income sufficient to fully use the deductions arising from any Basis
Adjustment and Imputed Interest during such Taxable Year, (2) the federal
income tax rates and state, local and foreign income tax rates that will be in
effect for each such Taxable Year will be those specified for each such Taxable
Year by the Code and other law as in effect on the Early Termination Date, (3)
any loss carryovers generated by any Basis Adjustment or Imputed Interest and
available as of the date of the Early Termination Schedule will be used by the
Corporation on a pro rata basis from the date of the Early Termination Schedule
through the scheduled expiration date of such loss carryovers, (4) any
non-amortizable assets will be disposed of on the fifteenth anniversary of the
earlier of the Basis Adjustment and the Early Termination Date, provided,
that in the event of a Change of Control, non-amortizable assets shall be deemed
disposed of at the earlier of (i) the time of sale of the relevant asset or
(ii) as generally provided in this Valuation Assumption (4)  and
(5) if, at the Early Termination Date, there are Units that have not been
Exchanged, then each such Unit shall be deemed to be Exchanged for the Market
Value of the Class A Shares and the amount of cash that would be transferred if
the Exchange occurred on the Early Termination Date.

 

ARTICLE II

DETERMINATION OF CUMULATIVE REALIZED TAX BENEFIT

 

Section 2.01           Basis Adjustment.

 

(a)           IPO
Date Intangible Assets. For purposes of this Agreement, as a result of an
Exchange, DPA shall be deemed to be entitled to a Basis Adjustment for each IPO
Date Intangible Asset with respect to the Corporation equal to the sum of (x) the
Amount Realized by the Exchanging Member in the Exchange, to the extent
attributable to such IPO Date Intangible Asset, plus (y) the amount of
payments made pursuant to this Agreement with respect to such Exchange, to the
extent attributable to such IPO Date Intangible Asset.  For purposes of this Agreement, in computing
the effect of the Basis Adjustment on the Tax liability of the
Corporation:  

 

1.                                       the actual basis
adjustment to each IPO Date Intangible Asset under Section 732 or
Section 743(b) of the Code shall be recovered by the Corporation in
accordance with its actual recovery for purposes of the applicable Tax;

 

2.                                       the portion of
the Basis Adjustment for each IPO Date Intangible Asset described in this
Section 2.01(a) that exceeds the actual basis adjustment to such IPO Date
Intangible Asset under Section 732 or Section 743(b) of the Code
shall be deemed to be amortized by the Corporation on a straight-line basis
over the 13 years following the
Exchange; and 

 

3.                                       any actual
depreciation, amortization or other recovery of cost or basis to the
Corporation for the IPO Date Intangible Asset shall be disregarded.  

 

11

 

(b)           Specified
Assets. For purposes of this Agreement, as a result of an Exchange, DPA
shall be deemed to be entitled to a Basis Adjustment for each Specified Asset
with respect to the Corporation, the amount of which Basis Adjustment shall be the excess, if any, of (i) the
sum of (x) the Amount Realized by the Exchanging Member in the Exchange, to
the extent attributable to such Specified Asset, plus (y) the amount of
payments made pursuant to this Agreement with respect to such Exchange, to the
extent attributable to such Specified Asset, over (ii) the Corporation’s share of DPA’s Tax basis for such Specified
Asset immediately after the Exchange, attributable to the Units Exchanged,
determined as if (x) DPA remains in existence as an entity for tax
purposes, and (y) DPA had not made the election provided by Section 754 of the
Code.  For the avoidance of doubt,
the Corporation’s share of DPA’s Tax
basis for such Specified Asset that is attributable to the Units
Exchanged shall be considered to be an amount of the Tax basis of the Specified
Asset, without regard to any Basis Adjustment, proportionate to the ratio that
the number of Units Exchanged bears to the number of outstanding Units
immediately prior to such Exchange.  For
purposes of this Agreement, in computing the effect of the Basis Adjustment on
the Tax liability of the Corporation:  

 

1.                                       the actual basis adjustment to each Specified
Asset under Section 732 or Section 743(b) of the Code shall be recovered by the
Corporation in accordance with its actual recovery for purposes of the
applicable Tax; and

 

2.                                       the portion of the Basis Adjustment
for each Specified Asset described in this Section 2.01(b) that exceeds the
actual basis adjustment to such Specified Asset under Section 732 or Section
743(b) of the Code shall be deemed to be amortized by the Corporation on a
straight line basis over the 13 years following the Exchange. 

 

(c)           Change
in Law.  To the extent that the
adjustment to DPA’s basis with respect to the Corporation, in any of DPA’s
assets, that is expected to result from an Exchange is limited because of a
change in law, the Basis Adjustment shall be correspondingly limited. 

 

(d)           Imputed
Interest.  For the avoidance of
doubt, payments made under this Agreement shall not be treated as resulting in
a Basis Adjustment to the extent such payments are treated as Imputed Interest.

 

Section 2.02           Exchange Basis Schedule .  Within 45 calendar days after the filing of
the United States federal income tax return of the Corporation for each Taxable
Year, the Corporation shall deliver to each Exchanging Member a schedule (the “Exchange
Basis Schedule”) that shows, in reasonable detail, for purposes of Taxes, (i)
the actual unadjusted Tax basis of the Specified Assets as of each applicable
Exchange Date, (ii) the Basis Adjustment with respect to the Specified Assets as
a result of the Exchanges effected in such Taxable Year, calculated in the
aggregate, (iii) the Tax basis in the IPO Date Intangible Assets as a result of
the Exchanges effected in such Taxable Year, as provided in Section 2.01(a), (iv)
the period or

 

12

 

periods, if any, over which the
Specified Assets and the IPO Date Intangible Assets are amortizable and/or
depreciable and (v) the period or periods, if any, over which each Basis
Adjustment is amortizable and/or depreciable (which, for non-amortizable assets
shall be based on the Valuation Assumptions).

 

Section 2.03           Tax Benefit Schedule.  Within 45 calendar days after the filing of
the United States federal income tax return of the Corporation for any Taxable
Year in which there is a Realized Tax Benefit or Realized Tax Detriment, the
Corporation shall provide to each Member a schedule showing, in reasonable
detail, the calculation of the Realized Tax Benefit or Realized Tax Detriment
for such Taxable Year (a “Tax Benefit Schedule”). The Schedule will
become final as provided in Section 2.04(a) and may be amended as provided in
Section 2.04(b) (subject to the procedures set forth in Section 2.04(b)).

 

Section 2.04           Procedures, Amendments

 

(a)           Procedure.
Every time the Corporation delivers to an Exchanging Member an applicable
Schedule under this Agreement, including any Amended Schedule delivered
pursuant to Section 2.04(b), but excluding any Early Termination Schedule or
amended Early Termination Schedule, the Corporation shall also (x) deliver to
the Exchanging Member schedules and work papers providing reasonable detail
regarding the preparation of the Schedule and an Advisory Firm Letter
supporting such Schedule and (y) allow the Exchanging Member reasonable access
at no cost to the appropriate representatives at the Corporation and the
Advisory Firm in connection with a review of such Schedule. The applicable
Schedule shall become final and binding on all parties unless the Exchanging Member,
within 30 calendar days after receiving an Exchange Basis Schedule or amendment
thereto or a Tax Benefit Schedule or amendment thereto, provides the
Corporation with notice of a material objection to such Schedule (“Objection
Notice”) made in good faith. If the parties, for any reason, are unable to
successfully resolve the issues raised in such notice within 30 calendar days
of receipt by the Corporation of an Objection Notice, if with respect to an
Exchange Basis Schedule or a Tax Benefit Schedule, the Corporation and the Exchanging
Member shall employ the reconciliation procedures as described in Section 7.09
of this Agreement (the “Reconciliation Procedures”).

 

(b)           Amended
Schedule. The applicable Schedule for any Taxable Year may be amended from
time to time by the Corporation (i) in connection with a Determination
affecting such Schedule, (ii) to correct material inaccuracies in the Schedule
identified as a result of the receipt of additional factual information
relating to a Taxable Year after the date the Schedule was provided to the Exchanging
Member, (iii) to comply with the Expert’s determination under the
Reconciliation Procedures, (iv) to reflect a material change in the Realized
Tax Benefit or Realized Tax Detriment for such Taxable Year attributable to a
carryback or carryforward of a loss or other tax item to such Taxable Year, (v)
to reflect a material change in the Realized Tax Benefit or Realized Tax
Detriment for such Taxable Year attributable to an amended Tax Return filed for
such Taxable Year, or (vi) to adjust the Exchange Basis Schedule to take into
account payments made pursuant to this Agreement (such Schedule, an “Amended
Schedule”).

 

13

 

ARTICLE III

TAX BENEFIT PAYMENTS

 

Section 3.01           Payments

 

(a)           Payments.
Within five (5) calendar days of a Tax Benefit Schedule that was delivered to
an Exchanging Member becoming final in accordance with Section 2.04(a), the
Corporation shall pay to such Exchanging Member for such Taxable Year the Tax
Benefit Payment determined pursuant to Section 3.01(b).  Each such Tax Benefit
Payment shall be made by wire transfer of immediately available funds to a bank
account of the Exchanging Member previously designated by such Member to the
Corporation.  For the avoidance of doubt,
no Tax Benefit Payment shall be made in respect of estimated tax payments,
including, without limitation, federal income tax payments.

 

(b)           A
“Tax Benefit Payment” means an amount, not less than zero, equal to the
sum of the Net Tax Benefit and the Interest Amount.  The “Net Tax Benefit”  for each Taxable Year shall be an
amount equal to the excess, if any, of 85% of the Cumulative Net Realized Tax
Benefit as of the end of such Taxable Year over the total amount of payments
previously made under this Section 3.01, excluding payments attributable to
Interest Amount; provided, however, that for the avoidance of
doubt, no Member shall be required to return any portion of any previously made
Tax Benefit Payment.  The “Interest
Amount” for a given Taxable Year shall equal the interest on the Net Tax
Benefit for such Taxable Year calculated at the Agreed Rate from the due date
(without extensions) for filing the Corporation Return with respect to Taxes
for the most recently ended Taxable Year until the Payment Date.  Notwithstanding the foregoing, for each
Taxable Year ending on or after the date of a Change of Control, all Tax
Benefit Payments, whether paid with respect to Units that were Exchanged (i)
prior to the date of such Change of Control or (ii) on or after the date of
such Change of Control, shall be calculated by using Valuation Assumptions (1),
(3), and (4), substituting in each case the terms “the date on which a Change
of Control becomes effective” for an “Early Termination Date.”  The Net Tax Benefit and the Interest Amount
shall be determined separately with respect to each separate Exchange, on a
Unit-by-Unit basis by reference to the Amount Realized by the Exchanging Member
on the Exchange of a Unit and the resulting Basis Adjustment to the Corporation.
  

 

Section 3.02           No Duplicative Payments. It is
intended that the provisions of this Agreement will not result in duplicative
payment of any amount (including interest) required under this Agreement. It is
also intended that the provisions of this Agreement will result in 85% of the
Corporation’s Cumulative Net Realized Tax Benefit, and the Interest Amount thereon,
being paid to the Members pursuant to this Agreement.  The provisions of this Agreement shall be
construed in the appropriate manner so that these fundamental results are
achieved. 

 

Section 3.03           Pro Rata Payments.  For the avoidance of doubt, to the extent that
(i) the Corporation’s deductions with respect to any Basis Adjustment is
limited in a particular

 

14

 

Taxable Year or (ii) the
Corporation lacks sufficient funds to satisfy its obligations to make all Tax
Benefit Payments due in a particular taxable year, the limitation on the
deduction, or the Tax Benefit Payments that may be made, as the case may be,
shall be taken into account or made for the Exchanging Member in the same
proportion as Tax Benefit Payments would have been made absent the limitations
in clauses (i) and (ii) of this paragraph, as applicable.

 

ARTICLE IV

TERMINATION

 

Section 4.01           Early Termination and Breach of
Agreement.

 

(a)           The
Corporation may terminate this Agreement with respect to all of the Units held
(or previously held and Exchanged) by all Members at any time by paying to the Members
the Early Termination Payment; provided, however, that this Agreement shall
only terminate upon the receipt of the Early Termination Payment by all Members,
and provided, further, that the Corporation may withdraw any notice to execute
its termination rights under this Section 4.01(a) prior to the time at which
any Early Termination Payment has been paid. 
Upon payment of the Early Termination Payments by the Corporation,
neither the Members nor the Corporation shall have any further payment
obligations under this Agreement, other than for any (a) Tax Benefit Payment
agreed to by the Corporation and the Member as due and payable but unpaid as of
the Early Termination Notice and (b) Tax Benefit Payment due for the Taxable
Year ending with or including the date of the Early Termination Notice (except
to the extent that the amount described in clause (b) is included in the Early
Termination Payment).  For the avoidance
of doubt, if an Exchange occurs after the Corporation makes the Early
Termination Payments with respect to all Members, the Corporation shall have no
obligations under this Agreement with respect to such Exchange, and its only
obligations under this Agreement in such case shall be its obligations to all
Members under Section 4.03(a). 

 

(b)           In
the event that the Corporation breaches any of its material obligations under
this Agreement, whether as a result of failure to make any payment when due,
failure to honor any other material obligation required hereunder or by
operation of law as a result of the rejection of this Agreement in a case
commenced under the Bankruptcy Code or otherwise, then all obligations
hereunder shall be accelerated and such obligations shall be calculated as if
an Early Termination Notice had been delivered on the date of such breach and
shall include, but shall not be limited to, (1) the Early Termination Payment
calculated as if an Early Termination Notice had been delivered on the date of
a breach, (2) any Tax Benefit Payment agreed to by the Corporation and any Members
as due and payable but unpaid as of the date of a breach, and (3) any Tax
Benefit Payment due for the Taxable Year ending with or including the date of a
breach.  Notwithstanding the foregoing,
in the event that the Corporation breaches this Agreement, the Members shall be
entitled to elect to receive the amounts set forth in clauses (1), (2) and (3)
above or to seek specific performance of the terms hereof.  The parties agree that the failure to make
any payment due pursuant to this Agreement within three months of the date such
payment is due shall be deemed to be a breach of a material obligation under
this

 

15

 

Agreement
for all purposes of this Agreement, and that it will not be considered to be a
breach of a material obligation under this Agreement to make a payment due
pursuant to this Agreement within three months of the date such payment is due.

 

(c)           The Corporation, DPA and each of the Members hereby
acknowledge that, as of the date of this Agreement, the
aggregate value of the Tax Benefit Payments cannot reasonably
be ascertained for United States federal income tax or other applicable
Tax purposes. 

 

Section 4.02           Early Termination Notice. If
the Corporation chooses to exercise its right of early termination under
Section 4.01 above, the Corporation shall deliver to each present or former Member
notice of such intention to exercise such right (“Early Termination Notice”)
and a schedule (the “Early Termination Schedule”) specifying the
Corporation’s intention to exercise such right and showing in reasonable detail
the calculation of the Early Termination Payment for that Member. The Early
Termination Schedule shall become final and binding on all parties unless the Member,
within 30 calendar days after receiving the Early Termination Schedule,
provides the Corporation with notice of a material objection to such Schedule
made in good faith (“Material Objection Notice”). If the parties, for
any reason, are unable to successfully resolve the issues raised in such notice
within 30 calendar days after receipt by the Corporation of the Material
Objection Notice, the Corporation and the Member shall employ the
Reconciliation Procedures as described in Section 7.09 of this Agreement.

 

Section 4.03           Payment upon Early Termination.
(a) Within three calendar days after agreement between the Member and the
Corporation of the Early Termination Schedule, the Corporation shall pay to the
Member an amount equal to the Early Termination Payment. Such payment shall be
made by wire transfer of immediately available funds to a bank account
designated by the Member.

 

(b)           The
“Early Termination Payment” as of the date of the delivery of an Early
Termination Schedule shall equal with respect to any Member the present value,
discounted at the Early Termination Rate as of such date, of all Tax Benefit
Payments that would be required to be paid by the Corporation to the Member
beginning from the Early Termination Date and assuming that the Valuation
Assumptions are applied. 

 

ARTICLE V

SUBORDINATION AND LATE PAYMENTS

 

Section 5.01           Subordination.  Notwithstanding any other provision of this
Agreement to the contrary, any Tax Benefit Payment or Early Termination Payment
required to be made by the Corporation to the Members under this Agreement (an “Exchange
Payment”) shall rank subordinate and junior in right of payment to any
principal, interest or other amounts due and payable in respect of any
obligations in respect of indebtedness for borrowed money of

 

16

 

the Corporation and its
Subsidiaries (“Senior Obligations”) and shall rank pari passu with all
current or future unsecured obligations of the Corporation that are not Senior
Obligations.  

 

Section 5.02           Late Payments by the Corporation.
The amount of all or any portion of any Exchange Payment not made to any Member
when due under the terms of this Agreement shall be payable together with any
interest thereon, computed at the Default Rate and commencing from the date on
which such Exchange Payment was due and payable.

 

ARTICLE VI

NO DISPUTES; CONSISTENCY; COOPERATION

 

Section 6.01           Original Member Participation in
the Corporation’s and DPA’s Tax Matters. Except as otherwise provided
herein, the Corporation shall have full responsibility for, and sole discretion
over, all Tax matters concerning the Corporation and DPA, including without
limitation the preparation, filing or amending of any Tax Return and defending,
contesting or settling any issue pertaining to Taxes. Notwithstanding the
foregoing, the Corporation shall notify the applicable Original Member of, and
keep the applicable Original Member reasonably informed with respect to, the
portion of any audit of the Corporation and DPA by a Taxing Authority the
outcome of which is reasonably expected to affect the applicable Original
Member’s rights and obligations under this Agreement, and shall provide to the
applicable Original Member reasonable opportunity to provide information and
other input to the Corporation, DPA and their respective advisors concerning
the conduct of any such portion of such audit; provided, however,
that the Corporation and DPA shall not be required to take any action that is
inconsistent with any provision of the LLC Agreement.

 

Section 6.02           Consistency. Except upon the
written advice of an Advisory Firm, and except for items that are explicitly
described as “deemed” or in similar manner by the terms of this Agreement, the
Corporation and the Exchanging Member agree to report and cause to be reported
for all purposes, including federal, state, local and foreign Tax purposes and
financial reporting purposes, all Tax-related items (including without
limitation the Basis Adjustment and each Tax Benefit Payment) in a manner
consistent with that specified by the Corporation in any Schedule required to
be provided by or on behalf of the Corporation under this Agreement. Any
Dispute concerning such advice shall be subject to the terms of Section 7.09; provided,
however, that only an Original Member shall have the right to object to
such advice pursuant to this Section 6.02. In the event that an Advisory Firm
is replaced with another firm acceptable to the Corporation and the Exchanging
Member, such replacement Advisory Firm shall be required to perform its
services under this Agreement using procedures and methodologies consistent with
the previous Advisory Firm, unless otherwise required by law or the Corporation
and the Exchanging Member agree to the use of other procedures and
methodologies.

 

Section 6.03           Cooperation. The Exchanging
Member shall (a) furnish to the Corporation in a timely manner such
information, documents and other materials as the Corporation may reasonably
request for purposes of making any determination or computation necessary or
appropriate under this Agreement, preparing any Tax Return or contesting or
defending any audit, examination or controversy with any Taxing Authority, (b)
make itself

 

17

 

available to the Corporation
and its representatives to provide explanations of documents and materials and
such other information as the Corporation or its representatives may reasonably
request in connection with any of the matters described in clause (a) above,
and (c) reasonably cooperate in connection with any such matter, and the
Corporation shall reimburse the Exchanging Member for any reasonable
third-party costs and expenses incurred pursuant to this Section.

 

ARTICLE VII

MISCELLANEOUS

 

Section 7.01           Notices. All notices,
requests, claims, demands and other communications hereunder shall be in
writing and shall be deemed duly given and received (a) on the date of delivery
if delivered personally, or by facsimile upon confirmation of transmission by
the sender’s fax machine if sent on a Business Day (or otherwise on the next
Business Day) or (b) on the first Business Day following the date of dispatch
if delivered by a recognized next-day courier service. All notices hereunder
shall be delivered as set forth below, or pursuant to such other instructions
as may be designated in writing by the party to receive such notice:

 

if to the Corporation, to:

 

Duff & Phelps Corporation

55 East 52nd Street

New York, New York 10055

Attention: General Counsel

Facsimile: (212) 450-2810 

 

 with a copy (which shall not constitute
notice to the Corporation) to:

Skadden, Arps, Slate, Meagher & Flom LLP

Four Times Square

New York, New York 10036

Telephone: (212) 735-3000

Facsimile: (212) 735-2000

Attention: David J. Goldschmidt, Esq. 

 

If to the Exchanging
Member, to:

 

The address and facsimile number set forth in
the records of DPA.

 

Any party may change its address or fax number by giving the other
party written notice of its new address or fax number in the manner set forth
above.

 

18

 

Section 7.02           Counterparts. This Agreement
may be executed in one or more counterparts, all of which shall be considered
one and the same agreement and shall become effective when one or more
counterparts have been signed by each of the parties and delivered to the other
parties, it being understood that all parties need not sign the same
counterpart. Delivery of an executed signature page to this Agreement by
facsimile transmission shall be as effective as delivery of a manually signed
counterpart of this Agreement.

 

Section 7.03           Entire Agreement; No Third Party
Beneficiaries. This Agreement constitutes the entire agreement and
supersedes all prior agreements and understandings, both written and oral,
among the parties with respect to the subject matter hereof. This Agreement
shall be binding upon and inure solely to the benefit of each party hereto and
their respective successors and permitted assigns, and nothing in this
Agreement, express or implied, is intended to or shall confer upon any other
Person any right, benefit or remedy of any nature whatsoever under or by reason
of this Agreement.

 

Section 7.04           Governing Law. This Agreement
shall be governed by, and construed in accordance with, the law of the State of
Delaware, without regard to the conflicts of laws principles thereof that would
mandate the application of the laws of another jurisdiction.

 

Section 7.05           Severability. If any term or
other provision of this Agreement is invalid, illegal or incapable of being
enforced by any law or public policy, all other terms and provisions of this
Agreement shall nevertheless remain in full force and effect so long as the
economic or legal substance of the transactions contemplated hereby is not
affected in any manner materially adverse to any party. Upon such determination
that any term or other provision is invalid, illegal or incapable of being
enforced, the parties hereto shall negotiate in good faith to modify this
Agreement so as to effect the original intent of the parties as closely as
possible in an acceptable manner in order that the transactions contemplated
hereby are consummated as originally contemplated to the greatest extent
possible.

 

Section 7.06           Successors; Assignment; Amendments;
Waivers. No Member may assign this Agreement to any person without the prior
written consent of the Corporation; provided, however, that (i) to
the extent Units are effectively transferred in accordance with the terms of
the LLC Agreement, the transferring Member shall have the option to assign to
the transferee of such Units the transferring Member’s rights under this Agreement
with respect to such transferred Units, as long as such transferee has executed
and delivered, or, in connection with such transfer, executes and delivers, a
joinder to this Agreement, in form and substance reasonably satisfactory to the
Corporation, agreeing to become a “Member” for all purposes of this Agreement,
except as otherwise provided in such joinder, and (ii) once an Exchange has
occurred, any and all payments that may become payable to a Member pursuant to
this Agreement with respect to the Exchanged Units may be assigned to any
Person or Persons, including a liquidating trust, as long as any such Person
has executed and delivered, or, in connection with such assignment, executes
and delivers, a joinder to this Agreement, in form and substance reasonably
satisfactory to the Corporation, agreeing to be bound by Section 7.12 and
acknowledging specifically the terms of the next paragraph. For the avoidance
of doubt, if a Person transfers Units (regardless of whether the transferee is
a “Permitted Transferee” under the terms of the LLC Agreement) but does not
assign to the transferee of such Units such Person’s rights, if any, under this
Agreement with respect to such transferred Units, such Person shall be

 

19

 

entitled to receive the Tax
Benefit Payments, if any, due hereunder with respect to, including any Tax
Benefit Payments arising in respect of a subsequent Exchange of, such Units.

 

Notwithstanding the foregoing provisions of
this Section 7.06, no transferee described in clause (i) of the immediately
preceding paragraph shall have the right to enforce the provisions of Section
2.04, 4.02, 6.01 or 6.02 of this Agreement, and no assignee described in clause
(ii) of the immediately preceding paragraph shall have any rights under this
Agreement except for the right to enforce its right to receive payments under
this Agreement.

 

No provision of this Agreement may be amended
unless such amendment is approved in writing by each of the Corporation and DPA
and by Original Members who would be entitled to receive at least two-thirds of
the Early Termination Payments payable to all Original Members hereunder if the
Corporation had exercised its right of early termination on the date of the
most recent Exchange prior to such amendment (excluding, for purposes of this
sentence, all payments made to any Original Member pursuant to this Agreement
since the date of such most recent Exchange); provided, that no such amendment
shall be effective if such amendment will have a disproportionate effect on the
payments certain Members will or may receive under this Agreement unless all
such Members disproportionately affected consent in writing to such amendment.
No provision of this Agreement may be waived unless such waiver is in writing
and signed by the party against whom the waiver is to be effective.

 

All of the terms and provisions of this
Agreement shall be binding upon, shall inure to the benefit of and shall be
enforceable by the parties hereto and their respective successors, assigns,
heirs, executors, administrators and legal representatives. The Corporation
shall require and cause any direct or indirect successor (whether by purchase,
merger, consolidation or otherwise) to all or substantially all of the business
or assets of the Corporation, by written agreement, expressly to assume and
agree to perform this Agreement in the same manner and to the same extent that
the Corporation would be required to perform if no such succession had taken
place.  Notwithstanding anything to the
contrary herein, in the event an Original Member transfers his Units to a
Permitted Transferee (as defined in the LLC Agreement), excluding any other Original
Member, such Original Member shall have the right, on behalf of such transferee,
to enforce the provisions of Sections 2.04, 4.02 or 6.01 with respect to such
transferred Units.

 

Section 7.07           Titles and Subtitles. The
titles of the sections and subsections of this Agreement are for convenience of
reference only and are not to be considered in construing this Agreement.

 

Section 7.08           Resolution of Disputes.

 

(a)           Any
and all disputes which are not governed by Section 7.09, including but not
limited to any ancillary claims of any party, arising out of, relating to or in
connection with the validity, negotiation, execution, interpretation,
performance or non-

 

20

 

performance
of this Agreement (including the validity, scope and enforceability of this
arbitration provision) (each a “Dispute”) shall be finally settled by
arbitration conducted by a single arbitrator in New York in accordance with the
then-existing Rules of Arbitration of the International Chamber of Commerce. If
the parties to the Dispute fail to agree on the selection of an arbitrator
within ten (10) days of the receipt of the request for arbitration, the
International Chamber of Commerce shall make the appointment. The arbitrator
shall be a lawyer admitted to the practice of law in the State of New York and
shall conduct the proceedings in the English language. Performance under this
Agreement shall continue if reasonably possible during any arbitration
proceedings.  In addition to monetary
damages, the arbitrator shall be empowered to award equitable relief,
including, but not limited to an injunction and specific performance of any
obligation under this Agreement. The arbitrator is not empowered to award
damages in excess of compensatory damages, and each party hereby irrevocably
waives any right to recover punitive, exemplary or similar damages with respect
to any Dispute.   The award shall be
final and binding upon the parties as from the date rendered, and shall be the
sole and exclusive remedy between the parties regarding any claims, counterclaims,
issues, or accounting presented to the arbitral tribunal.  Judgment upon any award may be entered and
enforced in any court having jurisdiction over a party or any of its assets.

 

(b)           Notwithstanding
the provisions of paragraph (a), the Corporation may bring an action or special
proceeding in any court of competent jurisdiction for the purpose of compelling
a party to arbitrate, seeking temporary or preliminary relief in aid of an
arbitration hereunder, and/or enforcing an arbitration award and, for the
purposes of this paragraph (b), each Member (i) expressly consents to the
application of paragraph (c) of this Section 7.08 to any such action or
proceeding, (ii) agrees that proof shall not be required that monetary damages
for breach of the provisions of this Agreement would be difficult to calculate
and that remedies at law would be inadequate, and (iii) irrevocably appoints
the Corporation as such Member’s agent for service of process in connection
with any such action or proceeding and agrees that service of process upon such
agent, who shall promptly advise such Member of any such service of process,
shall be deemed in every respect effective service of process upon the Member
in any such action or proceeding.

 

(c)           (i)  EACH PARTY HEREBY IRREVOCABLY SUBMITS TO THE
JURISDICTION OF COURTS LOCATED IN NEW YORK, NEW YORK FOR THE PURPOSE OF ANY
JUDICIAL PROCEEDING BROUGHT IN ACCORDANCE WITH THE PROVISIONS OF PARAGRAPH (B)
OF THIS SECTION 7.08, OR ANY JUDICIAL PROCEEDING ANCILLARY TO AN ARBITRATION OR
CONTEMPLATED ARBITRATION ARISING OUT OF OR RELATING TO OR CONCERNING THIS
AGREEMENT. Such ancillary judicial proceedings include any suit, action or
proceeding to compel arbitration, to obtain temporary or preliminary judicial
relief in aid of arbitration, or to confirm an arbitration award. The parties
acknowledge that the fora designated by this paragraph (c) have a reasonable
relation to this Agreement, and to the parties’ relationship with one another;
and

 

21

 

(ii)     The
parties hereby waive, to the fullest extent permitted by applicable law, any
objection which they now or hereafter may have to personal jurisdiction or to
the laying of venue of any such ancillary suit, action or proceeding brought in
any court referred to in paragraph (c)(i) of this Section 7.08 and such parties
agree not to plead or claim the same.

 

Section 7.09           Reconciliation. In the event
that the Corporation and the Exchanging Member are unable to resolve a
disagreement with respect to the matters governed by Sections 2.04, 4.02 and
6.02 within the relevant period designated in this Agreement (“Reconciliation
Dispute”), the Reconciliation Dispute shall be submitted for determination
to a nationally recognized expert (the “Expert”) in the particular area
of disagreement mutually acceptable to both parties. The Expert shall be a
partner in a nationally recognized accounting firm or a law firm (other than
the Advisory Firm), and the Expert shall not, and the firm that employs the
Expert shall not, have any material relationship with either the Corporation or
the Exchanging Member or other actual or potential conflict of interest. If the
parties are unable to agree on an Expert within fifteen (15) days of receipt by
the respondent(s) of written notice of a Reconciliation Dispute, the Expert
shall be appointed by the International Chamber of Commerce Centre for
Expertise. The Expert shall resolve any matter relating to the Exchange Basis
Schedule or an amendment thereto or the Early Termination Schedule or an
amendment thereto within 30 calendar days and shall resolve any matter relating
to a Tax Benefit Schedule or an amendment thereto within 15 calendar days or as
soon thereafter as is reasonably practicable, in each case after the matter has
been submitted to the Expert for resolution. 
Notwithstanding the preceding sentence, if the matter is not resolved
before any payment that is the subject of a disagreement would be due (in the
absence of such disagreement) or any Tax Return reflecting the subject of a
disagreement is due, the undisputed amount shall be paid on such date and such
Tax Return may be filed as prepared by the Corporation, subject to adjustment
or amendment upon resolution.  The costs
and expenses relating to the engagement of such Expert or amending any Tax
Return shall be borne by the Corporation except as provided in the next
sentence.  The Corporation and each Exchanging
Member shall bear their own costs and expenses of such proceeding, unless an Exchanging
Member has a prevailing position that is more than 10% of the payment at issue,
in which case the Corporation shall reimburse such Exchanging Member for any
reasonable out-of-pocket costs and expenses in such proceeding.  Any dispute as to whether a dispute is a
Reconciliation Dispute within the meaning of this Section 7.09 shall be decided
by the Expert.  The Expert shall finally
determine any Reconciliation Dispute and the determinations of the Expert
pursuant to this Section 7.09 shall be binding on the Corporation and the Exchanging
Member and may be entered and enforced in any court having jurisdiction.  

 

Section 7.10           Withholding. The Corporation
shall be entitled to deduct and withhold from any payment payable pursuant to
this Agreement such amounts as the Corporation is required to deduct and
withhold with respect to the making of such payment under the Code or any
provision of state, local or foreign tax law. To the extent that amounts are so
withheld and paid over to the appropriate Taxing Authority by the Corporation,
such withheld amounts shall be treated for all purposes of this Agreement as
having been paid to the Exchanging Member.

 

22

 

Section 7.11           Admission of the Corporation into
a Consolidated Group; Transfers of Corporate Assets.  

 

(a)           If
the Corporation becomes a member of an affiliated or consolidated group of
corporations that files a consolidated income tax return pursuant to Sections
1501 et seq. of the Code or any corresponding provisions of state, local or
foreign law, then: (i) the provisions of this Agreement shall be applied with
respect to the group as a whole; and (ii) Tax Benefit Payments, Early
Termination Payments and other applicable items hereunder shall be computed
with reference to the consolidated taxable income of the group as a whole.

 

(b)           If
any entity that is obligated to make an Exchange Payment hereunder transfers
one or more assets to a corporation with which such entity does not file a
consolidated tax return pursuant to Section 1501 of the Code, such entity, for
purposes of calculating the amount of any Exchange Payment (e.g., calculating
the gross income of the entity and determining the Realized Tax Benefit of such
entity) due hereunder, shall be treated as having disposed of such asset in a
fully taxable transaction on the date of such contribution.  The consideration deemed to be received by
such entity shall be equal to the Fair Market Value of the contributed asset,
plus (i) the amount of debt to which such asset is subject, in the case of a
contribution of an encumbered asset or (ii) the amount of debt allocated to
such asset, in the case of a contribution of a partnership interest.

 

Section 7.12           Confidentiality.  Each Member and assignee acknowledges and
agrees that the information of the Corporation is confidential and, except in
the course of performing any duties as necessary for the Corporation and its
Affiliates, as required by law or legal process or to enforce the terms of this
Agreement, such person shall keep and retain in the strictest confidence and
not disclose to any Person any confidential matters, acquired pursuant to this
Agreement, of the Corporation and its Affiliates and successors, concerning DPA
and its Affiliates and successors or the other Members, learned by the Member
heretofore or hereafter.  This clause
7.12 shall not apply to (i) any information that has been made publicly
available by the Corporation or any of its Affiliates, becomes public knowledge
(except as a result of an act of such Member in violation of this Agreement) or
is generally known to the business community and (ii) the disclosure of
information to the extent necessary for a Member to prepare and file his or her
Tax returns, to respond to any inquiries regarding the same from any taxing
authority or to prosecute or defend any action, proceeding or audit by any
taxing authority with respect to such returns. 
Notwithstanding anything to the contrary herein, each Member and
assignee (and each employee, representative or other agent of such Member or
assignee, as applicable) may disclose to any and all Persons, without
limitation of any kind, the tax treatment and tax structure of the Corporation,
DPA, the Members and their Affiliates, and any of their transactions, and all
materials of any kind (including opinions or other tax analyses) that are
provided to the Members relating to such tax treatment and tax structure.

 

If a Member or
assignee commits a breach, or threatens to commit a breach, of any of the
provisions of this Section 7.12, the Corporation shall have the right and remedy
to have the provisions of this Section 7.12 specifically enforced by
injunctive relief or otherwise by any

 

23

 

court of competent jurisdiction without the
need to post any bond or other security, it being acknowledged and agreed that
any such breach or threatened breach shall cause irreparable injury to the
Corporation or any of its Subsidiaries or the other Members and the accounts
and funds managed by the Corporation and that money damages alone shall not
provide an adequate remedy to such Persons. 
Such rights and remedies shall be in addition to, and not in lieu of,
any other rights and remedies available at law or in equity.

 

Section 7.13           LLC Agreement. This Agreement
shall be treated as part of the partnership agreement of DPA as described in
Section 761(c) of the Internal Revenue Code of 1986, as amended, and Sections
1.704-1(b)(2)(ii)(h) and 1.761-1(c) of the Treasury Regulations.

 

Section 7.14           Partnerships. The Corporation
hereby agrees that, to the extent it acquires a general partnership interest,
managing member interest or similar interest in any Person after the date
hereof, it shall cause such Person to execute and deliver a joinder to this
Agreement and such Person shall be treated as a “partnership” for all purposes
of this Agreement.

 

24

 

IN WITNESS
WHEREOF, the Corporation and each Member have duly executed this Agreement as of
the date first written above.

 

	
   

  	
  DUFF & PHELPS CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DUFF & PHELPS ACQUISITIONS, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ON BEHALF OF EACH OF THE MEMBERS OF DUFF & PHELPS
  ACQUISITIONS, LLC:

  
	
   

  	
   

  	
   

  
	
   

  	
  NOAH GOTTDIENER

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  GERARD CREAGH

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

25

 

EXHIBIT A

 

JOINDER

 

This JOINDER (this “Joinder”) to the Tax
Receivable Agreement, dated as of            ,
by and among Duff & Phelps Corporation, a Delaware corporation (the “Corporation”),
Duff & Phelps Acquisitions, LLC, a Delaware limited liability company (“DPA”)
and                           
(“Permitted Transferee”).

 

WHEREAS, on            ,
Permitted Transferee acquired (the “Acquisition”)      
Units in DPA and the corresponding shares of Class B common stock of the
Corporation (collectively, “Interests” and, together with all other
Interests hereinafter acquired by Permitted Transferee from Transferor and its
Permitted Transferees (as defined in the Tax Receivable Agreement), the “Acquired
Interests”) from            
(“Transferor”); and

 

WHEREAS, Transferor, in connection with the
Acquisition, has required Permitted Transferee to execute and deliver this
Joinder pursuant to Section 7.06 of the Tax Receivable Agreement.

 

NOW,
THEREFORE, in consideration of the foregoing and the agreements contained
herein, Permitted Transferee hereby agrees as follows:

 

Section 1.1             Definitions. 
To the extent capitalized words used in this Joinder are not defined in
this Joinder, such words shall have the meaning set forth in the Tax Receivable
Agreement.

 

Section 1.2             Joinder.  Permitted Transferee hereby acknowledges and
agrees to become a “Member” (as defined in the Tax Receivable Agreement) for
all purposes of the Tax Receivable Agreement, including but not limited to,
being bound by Sections 7.12, 2.04, 4.02, 6.01 and 6.02 of the Tax Receivable
Agreement, with respect to the Acquired Interests, and any other Interests
Permitted Transferee acquires hereafter.

 

Section 1.3             Notice.  All notices, requests, consents and other
communications hereunder to Permitted Transferee shall be deemed to be
sufficient if contained in a written instrument delivered in person or sent by
facsimile (provided a copy is thereafter promptly delivered as provided in this
Section 1.3) or nationally recognized overnight courier, addressed to Permitted
Transferee at the address or facsimile number set forth below or such other
address or facsimile number as may hereafter be designated in writing by
Permitted Transferee:

 

Section 1.4             Governing
Law.  THIS JOINDER
SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE
OF DELAWARE, WITHOUT GIVING EFFECT TO CONFLICT OF LAWS PRINCIPLES THEREOF.

 

26

 

IN WITNESS WHEREOF, this
Joinder has been duly executed and delivered by Permitted Transferee as of the
date first above written.

 

                              

 

Signature Page for Joinder by                 

to the Tax Receivable Agreement

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