Document:

Employment contract

     

    Exhibit
      10.1

    

       

      EMPLOYMENT
        AGREEMENT

      BETWEEN
        WILLIAM GREENE AND SURGE GLOBAL ENERGY, INC.

      

      THIS
        AGREEMENT ("Agreement")
        is made
        as of December 14, 2006 by and between SURGE GLOBAL ENERGY, INC. a Delaware
        corporation ("Company"), and WILLIAM GREENE, an individual who resides in
        California ("Executive"), under the following circumstances:

      

      A. The
        Company is a publicly-traded company engaged in the business of oil and gas
        exploration.

      

      B. The
        Company has retained Executive since 2004 as an independent consultant to
        assist
        with SEC compliance matters.

      

      C. Executive
        was appointed by the Company's board of directors as Chief Financial Officer
        to
        be effective as of June 30, 2006.

      

      D. The
        Company desires to hire Executive as an employee to serve as its Chief Financial
        Officer and Executive desires to accept such employment on the terms and
        conditions set forth herein.

      

      NOW,
        THEREFORE, in consideration of the foregoing, the representations, warranties
        and covenants contained in this Agreement and for other good and valuable
        consideration, the receipt and sufficiency of which is acknowledged, and
        intending to be legally bound, the parties hereby agree as follows:

      

      1. 
        Employment. Effective
        as of June 30, 2006 (the "Effective Date") the Company employed Executive,
        and
        Executive hereby accepted employment by the Company. Executive shall serve
        as
        Chief Financial Officer (CFO) and shall report to the Chief Executive Officer
        of
        the Company, or, if none, to the Board. During the term of this Agreement,
        Executive shall devote substantially all of his business time and effort
        to the
        performance of his duties hereunder. The Company shall not require Executive,
        without Executive's
        consent, to relocate from the greater Southern California area or to spend
        more
        than five (5) nights away from home during any calendar month.

      

      2.  Duties.
        Executive
        shall serve in an executive capacity and shall perform such duties as are
        consistent with his position as CFO as may be reasonably required by the
        CEO or
        the Board. Such duties shall include without limitation, preparing financial
        statements, timely SEC compliance filings, proformas, operating budgets,
        financial models, P&L responsibility, communicating with shareholders,
        investors, public relations

      firm,
        subsidiaries, financing sources to maximize shareholder value. In addition
        executive will be assisting the CEO in developing Surge's
        strategic initiatives, M&A activity, expansion plans and cash funding
        requirements.

      

      
        
          
          

        

        
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        3. Term.
          Executive's employment under this Agreement shall commence on the Effective
          Date
          and continue for the period (the "Term") from such date until the earlier
          of
the first (1st) anniversary of such date or the date Executive's
          employment otherwise is terminated as provided in Section 7 hereof. The
          Term may
          be extended by mutual written agreement of the parties.

      

      

      4. Compensation.
        Executive
        shall receive as compensation for his services under this Agreement an annual
        salary ("Base
        Compensation")
        of
        $180,000, payable in installments in accordance with the normal payroll policies
        of the Company. In the event the Tenn of this Agreement is extended, Executive
        shall be entitled to annual increases in Base Salary determined at the sole
        discretion of the Compensation Committee of the Board (or the Board if there
        shall be no Compensation Committee) in its annual review of
        Executive.

      

      5. Performance
        Bonus Compensation. Executive
        shall be eligible to receive a bonus based upon performance ("Performance
        Bonus") as follows:

      

      5.1
        Criteria and Calculation. The
        Performance Bonus shall be discretionary and based upon performance above
        and
        beyond the required customary duties of the Chief Financial Officer. And
        may be
        paid in cash or stock.

       

      5.2 Eligibility.
        As
        a
        condition of eligibility for the Performance Bonus, Executive must be employed
        by the Company on the date payment is,due.

      

      6. Other
        Benefits. Executive
        shall be entitled to receive other benefits, as follows:

      

      6.1
        Vacation. Executive
        shall be entitled to four (4) weeks of paid vacation per year. The days selected
        for Executive's vacations shall be mutually agreeable to Company and
        Executive,

      

      6.2
        Medical Benefits. Executive
        shall be provided medical benefits similar to those extended to other executive
        officers of the Company. The Company may, in its sole discretion and from
        time
        to time establish other medical and dental benefit programs applicable to
        all
        executive officers as it deems appropriate,

      

      6.3
        Other Benefit Plans. Executive
        shall be entitled to participate in other benefit plans and arrangements
        as are
        generally made available by the Company to its employees but only if executive
        officers of the Company are generally eligible to participate in such plan
        or
        program. Executive understands that any such plans may be modified or eliminated
        in Company's
        discretion.

      

      6.4
        Reimbursement of Business Expenses. The
        Company shall reimburse Executive for all reasonable travel and entertainment
        expenses incurred by Executive in the course of his employment in accordance
        with the Company's normal policies, upon submission of properly documented
        expense account reports.

      

      6.5 Insurance.
        The
        Company will purchase and maintain a Directors and Officers Liability Insurance
        Policy of having a limit of no less than $5,000,000.

      
        
          
          

        

        
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        6.6 Indemnification. To
        the
        maximum extent permitted by law, the Company shall indemnify, defend and
        hold
        Executive harmless for any and all liabilities incurred in direct consequence
        of
        the discharge of his employment with the Company, unless the Executive believed
        such activities to be unlawful at the time he undertook or was directed to
        undertake such actions.

      

      7.  Stock
        Options. Executive
        shall be entitled to the following stock options:

      

      7.1 Initial
        Option. As
        of the
        Effective Date of this Agreement, the Company shall issue Executive an option
        to
        purchase four hundred thousand (400,000) shares of Common Stock of the Company
        at an exercise price of One Dollar and eleven cents ($1.11) per share (the
        "Initial Option")

      

      7.2 Vesting.
        The
        Initial Option shall vest over 3 years at the rate of 1136 per month. The
        Initial Option shall be exercisable for a term of ten (10) years, subject
        to
        continuing Service (as defined in the Option
        Agreement), which
        states the exercise period from date of departure to be 90 days.

      

      7.3 Vesting
        on Change of Control. Vesting
        of the Initial Option shall accelerate upon a Change in Control (as defined
        in
        the Option
        Agreement).

      

      8. Termination.
        Executive's
        employment under this Agreement may be terminated prior to the end of the
        Term
        as follows:

      

      8.1
        By the Company Without Cause. Subject
        to the payments pursuant to Section 8.5, the Executive's employment under
        this
        Agreement may be terminated by the Employer without Cause.

      

      8.2
        By Death or Disability. Subject
        to the payments pursuant to Section 8.5, Executive's employment shall terminate
        automatically upon his death or Total Disability (as hereinafter defined).
        For
        purposes of this Agreement, "Total
        Disability"
        means
        that Executive is unable to perform the essential functions of the position,
        even with reasonable accommodation, for ninety (90) consecutive
        days.

      

      8.3
        By the Company for Cause. Subject
        to the payments pursuant to Section 8.5, the Company may terminate Executive's
        employment under this Agreement at any time for Cause (as hereinafter defined),
        upon written notice to Executive stating the reason(s) for such termination.
        For
        purposes of this Agreement, "Cause" means the occurrence or existence of
        any of
        the following with respect to Executive: (a) Executive's repeated and continued
        failure to perform his duties and responsibilities as a Company employee
        in good
        faith after having a reasonable opportunity to cure such failure upon receiving
        specific written notice of such failure from the Board; (b) commission of
        any
        act of fraud with respect to the Company; or (c) conviction of a felony or
        a
        crime involving moral turpitude if such felony or crime caused material harm
        to
        the business and affairs of the Company.

      
        
          
          

        

        
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      8.4 Resignation.
        Executive
        may terminate his employment with the Company
        at any time on ninety (90) days prior written notice.

      

      8.5Payment
        upon Termination. If
        Executive's employment is terminated pursuant
        to section 8.1, then the Company shall

       

      (a) pay
        Executive all amounts and receive such other benefits which would have been
        due
        if Executive's employment had terminated pursuant to sections 8.2 and 8.3,
        within thirty (30) days of such termination;

       

      (b) the
        company will pay Executive the balance of contract and pro rate his options
        based on the date of departure;

      

      If
        Executive's employment is terminated pursuant to section 8.3, then the Company
        shall

       

             
        (a) pay
        Executive's Base Compensation and other benefits through the termination
        date
        set forth in the applicable section, within thirty (30) days of such termination
        date; and

       

             
        (b) all
        unvested stock options and other equity awards granted by the Company to
        Executive shall be pro-rated through the applicable termination date and
        such
        stock options and other equity awards shall remain outstanding and exercisable
        according to the terms of the option agreement and option plan.

      

      9.
        Intellectual Property. Executive
        acknowledges and agrees that any copyrightable works prepared by him, either
        alone or jointly with others, within the scope of his employment are "works
        made
        for hire" under the United States Copyright Act and that the Company will
        be
        considered the author and owner of such copyrightable works. In the event
        that
        any such copyrightable works are not deemed to be "works made for hire,"
        Executive hereby irrevocably assigns all of his right, title and interest
        in and
        to such copyrightable works to the Company.

      

      Except
        for any invention that qualifies under Labor Code § 2870 (below), all
        inventions, designs, drawings, concepts, products, methods, or other
        developments ("Developments") that Executive conceives, assists in conceiving,
        improves, or otherwise develops during the term relating in any way to the
        business of the Company, developed during working hours or using supplies,
        equipment, or facilities of the Company, will be the exclusive property of
        the
        Company, and Executive assigns any rights Executive has or may have therein
        to
        the Company. Executive will promptly disclose to the Company any such
        Developments of any kind that relate to the Company's business that Executive
        conceives, makes, develops, or acquires during the term. Executive will execute
        any documents necessary or appropriate to perfect the Company's
        rights
        in and title to the Developments, including any assignment of copyright or
        assistance with any patent application. Company will reimburse Executive
        the
        reasonable cost of any lost wages incurred by Executive in complying with
        the
        execution of said documents, whether during or after employment terminates.
        Executive warrants and represents that Employee will not use and does not
        need
        to use any property or infringe any rights of any third party in the performance
        of Employee's duties under this Agreement.

      
        
          
          

        

        
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        California
          Labor Code § 2870 excludes from assignment any invention for which no equipment,
          supplies, facility, or trade secret information of the employer was used
          and
which was developed entirely on the employee's own time, and
        which (i) does not relate (1) to the business of the employer, or (2) to
        the
        employer's actual or demonstrably anticipated research or development, or
        (ii)
        does not result from the work performed by the employee for the employer.

      

      10. Confidentiality.

      

      (a) Executive
        shall not, during the period commencing on the date of this Agreement and
        ending
        two years after the last day of the Term, to the detriment of the Company
        or any
        of its Affiliates, disclose or furnish to any person any Confidential
        Information (as hereinafter defined) or otherwise use any such Confidential
        Information for Executive's own benefit or the direct or indirect benefit
        of any
        person other than the Company or any such Affiliate. Notwithstanding the
        foregoing, however, the requirements of this section shall not apply to
        information which: (i) is or becomes generally available to the public other
        than as a result of a disclosure by Executive, or (ii) becomes available
        to
        Executive on a non-confidential basis from a source other than the Company
        or
        any of its Affiliates which is not known by Executive to be under a
        confidentiality obligation to the Company or any of its Affiliates.

      

      (b) For
        purposes of this Agreement, "Confidential Information" means any information,
        data or other materials of the Company or any of its Affiliates which: (i)
        is
        proprietary or confidential to the Company or such Affiliate or otherwise
        was or
        is designated by the Company or such Affiliate as Confidential information,
        (ii)
        is not generally available to the general public, and (iii) is acquired by,
        disclosed to or known by Executive as a result of or through Executive's
        relationship with the Company or such Affiliate (including information
        conceived, originated, discovered or developed in whole or in part by
        Executive). "Confidential Information" includes, without limitation: (i)
        information concerning actual and potential customers, (ii) sales information,
        marketing and product development plans, marketing techniques, pricing policies
        and market forecasts, (iii) information concerning proprietary computer systems
        (including hardware and software), support systems and techniques and methods,
        (iv) information with respect to developments, improvements, inventions,
        ideas,
        processes, procedures, discoveries, concepts, designs, drawings, specifications,
        data and "know-how," (v) financial information (including, without limitation,
        sales and revenue information and financial statements), (vi) product or
        service
        information (including, without limitation, product designs and specifications,
        product development plans, product strategies and product delivery systems),
        (vii) information which, if used or disclosed, could adversely affect the
        Company or any of its Affiliates or give a competitor an advantage over a
        party
        without access to the information, and (viii) information of a type described
        in
        the foregoing clause (i) through (vii) which the Company or any of its
        Affiliates obtained from another party who treats the information as proprietary
        or designates it as confidential information or which is designated with
        a
        legend indicating that it is confidential or proprietary (whether or not
        owned
        or developed by the Company or such Affiliate).

      

      (c) Executive
        may respond to a lawful and valid subpoena or other legal process but shall
        give
        the Company the earliest possible notice thereof and shall, as much in advance
        of the return date as possible, make available to the Company and its counsel
        the documents and other information sought and shall assist such counsel
        in
        resisting or otherwise responding to such process.

      
        
          
          

        

        
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      (d)
        As
        used in this Agreement, the term "Affiliate" means a person or entity that,
        directly or indirectly through one or more intermediaries, controls or is
        controlled by the Company and including, without limitation, any joint venture
        entity that the Company or an Affiliate of the Company is a member, partner
        or
        shareholder. For purposes of this Agreement, Executive is not deemed an
        Affiliate.

      

      11. Injunctive
        Relief. The
        parties acknowledge that the remedy at law for a breach of any provision
        of
        Sections 9 and 10 will be inadequate. In addition to any other remedies that
        the
        Company may have in the event of such a breach, the Company shall be entitled
        to
        temporary and permanent injunctive relief to prevent Executive's continued
        breach of such provisions without the necessity of proving actual damage
        and
        without being required to post any bond. The obligations of Executive set
        forth
        in Sections 9 and 10 are independent, and the existence of any claim or cause
        of
        action by Executive or any of his affiliates against the Company, whether
        predicated on this Agreement or otherwise, shall not constitute a defense
        to the
        enforcement of this Agreement by the Company.

      

      12. Notices.
        Any
        notice under this Agreement shall be in writing and shall be deemed to have
        been
        given when: (a) delivered personally, (b) sent by express mail or other
        overnight courier service, or (c) deposited in the United States mail, certified
        or registered and with proper postage prepaid, addressed as follows, or to
        such
        other address as is provided by written notice delivered in accordance with
        this
        Section:

      

      If
        to
        Executive, to:

      

      William
        Greene

       

       
        

      

      If
        to the
        Company, to:

      

      SURGE
        GLOBAL ENERGY INC. 12220 El Camino Real Suite 410 San Diego, CA
        92130

      Attention:
        Office of the CEO Tel. (858) 704-5010

      Fax:
        (858) 704-5011

      

      13. Amendment;
        Waiver. No
        modification, amendment or waiver of any provision of this Agreement shall
        be
        valid and binding unless it is in writing and signed by both of the parties
        hereto, A waiver of any provision of this Agreement shall be effective only
        in
        the specific instance and for the particular purpose for which it was given.
        No
        failure to exercise and no delay in exercising, any right or power under
        this
        Agreement shall operate as a waiver of such right or power.

      
        
          
          

        

        
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      14. 
        Assignment. This
        Agreement shall inure to the benefit of and shall be binding upon the parties
        hereto and their respective successors, personal representatives, heirs and
        assigns. Neither this Agreement, nor the rights and obligations created
        hereunder, may be assigned by either party without the prior written consent
        of
        the other party.

      

      15. 
        Severability. If
        any
        provision of this Agreement is held to be illegal, invalid, or unenforceable
        under present or future laws effective during the term hereof, such provision
        shall be fully severable; this Agreement shall be construed and enforced
        as if
        such illegal, invalid, or unenforceable provision had never comprised a part
        hereof; and the remaining provisions shall remain in full force and effect
        and
        shall not be affected by the illegal, invalid, or unenforceable provision
        or by
        its severance from this Agreement. Furthermore, in lieu of such illegal,
        invalid, or unenforceable provision, there shall be added automatically as
        a
        part of this Agreement a legal, valid and enforceable provision as similar
        in
        terms to such illegal, invalid, or unenforceable provision as is possible;
        provided, however, that any such added provision shall not result in any
        material change in Executive's duties, responsibilities and obligations under
        this Agreement.

      

      16. 
        Entire Agreement. This
        document constitutes the final, complete, and exclusive embodiment of the
        entire
        agreement and understanding between the parties related to the subject matter
        of
        this Agreement and supersedes and preempts any prior or contemporaneous
        understandings, agreements, or representations by or between the parties,
        written or oral.

      

      17. 
        Governing Law.
        This
        Agreement shall be governed by, and the legal relations among the parties
        shall
        be construed in accordance with, the laws of the State of California as applied
        to agreements executed and performed entirely within the United States and
        State
        of California.

      

       18.
         Arbitration.
        The
        parties agree that any and all disputes, claims or controversies arising
        out of
        or relating to this Agreement, the employment relationship between the parties,
        the terms or conditions of employment, or the termination of the employment
        relationship, that are not resolved by their mutual agreement shall be resolved
        by final and binding arbitration as the exclusive remedy in accordance with
        the
        JAMS Employment Arbitration Rules and Procedures in effect at the time
        arbitration is initiated. Either party may commence the arbitration process
        by
        filing a written demand for arbitration with JAMS and sending a copy to the
        other party. The arbitration shall be conducted by one neutral arbitrator
        selected by the parties from a list of arbitrators provided by JAMS, or its
        successor, in San Diego County, California. If the parties are unable to
        agree
        upon an arbitrator from the list provided, the parties shall alternate in
        striking names of arbitrators from the list until one is left who shall be
        the
        arbitrator. The parties shall be entitled to be represented by counsel in
        the
        arbitration 

        
          
            
            

          

          
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      proceeding.
        The arbitrator shall have the authority to order such discovery, by way of
        deposition, interrogatory, document production, or otherwise, as the arbitrator
        considers necessary to a full and fair exploration of the issues in dispute,
        consistent with the expedited nature of arbitration, The arbitrator is
        authorized to award any remedy or relief that the arbitrator deems just and
        equitable, including any remedy or relief that would have been available
        to the
        parties had the matter been heard in court. The arbitrator shall have the
        authority to provide for the award of attorney's fees and costs in accordance
        with applicable law. Executive shall not be required to pay any cost or expense
        of the arbitration that he or she would not be required to pay if the matter
        had
        been heard in court. The decision of the arbitrator shall be in writing and
        shall provide the reasons for the award unless the parties agree otherwise.
        Proceedings to enforce, confirm, modify, set aside or vacate an award or
        decision rendered by the arbitrator will be controlled by and conducted in
        conformity with the Federal Arbitration Act, 9 U.S.C. Sec 1 et. seq. or
        applicable state law. Nothing in this paragraph shall prohibit or limit the
        parties from seeking provisional remedies under California Code of Civil
        Procedure section 1281.8, including, but not limited to, injunctive relief
        from
        a court of competent jurisdiction. The parties agree that should either party
        initiate litigation in a court in violation of this paragraph, the party
        who
        successfully compels arbitration shall be entitled to recover its/his/her
        attorney's fees and costs incurred in compelling arbitration from the party
        who
        violated this paragraph, and that a court may require the payment of such
        attorney's fees and costs as part of its order compelling arbitration. If
        the
        court declines to order the payment of the attorney's fees and costs to the
        party who successfully compels arbitration, then the parties agree that the
        arbitrator shall have the authority to make such an order.

      

      19. 
        Mediation. Executive
        and Company agree to mediate any dispute or claim arising between them out
        of
        this Agreement or any resulting transaction, before resulting to arbitration
        or
        court action. Mediation fees, if any, shall be divided equally among the
        parties
        involved. If any party commences an action based on a dispute or claim to
        which
        this paragraph applies, without first attempting to resolve the matter through
        mediation, then that party shall not be entitled to recover attorney's fees,
        even if they would otherwise be available to that party in any such
        action.

      

      20. 
        Representation Legal Counsel/Interpretation. Executive
        and the Company have each consulted with legal counsel in connection with
        the,
        negotiation and entry into this Agreement. Accordingly, any rule of law or
        decision that would require interpretation of any claimed ambiguities in
        this
        Agreement against the party that drafted it has no application and is expressly
        waived. The provisions of this Agreement shall be interpreted in a reasonable
        manner to effect the intent of the parties.

      

      21. 
        Executive Representations. Executive
        hereby represents and warrants to Company that he or she (a) is not now under
        any contractual or quasi-contractual obligation that is inconsistent or in
        conflict with this Agreement or that would prevent, limit, or impair Executive's
        performance of his or her obligations under this Agreement; (b) has been
        represented by legal counsel in preparing, negotiating, executing, and
        delivering this Agreement; and (c) fully understands its terms and
        provisions.

       

      
        
          
          

        

        
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      22.  Company
        Representations. The
        Company represents and warrants to Executive that (a) it is not now under
        any
        contractual or quasi-contractual obligation that is inconsistent or in conflict
        with this Agreement or that would prevent, limit, or impair the
        Company's
        performance of its obligations under this Agreement; (b) has been represented
        by
        legal counsel in preparing, negotiating, executing, and delivering this
        Agreement; and (c) this Agreement has been duly approved by the Board of
        Directors hi accordance with the procedures set forth in Section 144(a)(1)
        of
        the Delaware General Corporation Law.

      

      IN
        WITNESS WHEREOF, the parties have duly executed this Agreement as of the
        date
        and year first above written.

       

      Company

       

      SURGE
        GLOBAL ENERGY, INC.

       

      
        By:
          /s/ David Perez

      

      Name:
        David Perez

      Title:
        CEO

       

        
          

        

      

      Executive
        

       

      By:
        /s/ William Greene

      Dated
        December 14. 2006

       Page
        9 of
        9Exhibit 4.1

 

 

 

KBW, INC.

 

 

SECOND AMENDED AND RESTATED STOCKHOLDERS’ AGREEMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

TABLE OF CONTENTS

	
   

  	
   

  	
   

  	
   

  	
  PAGE

  
	
  ARTICLE I

  	
   

  	
  DEFINITIONS

  	
   

  	
  1

  
	
  ARTICLE II

  	
   

  	
  LIMITATIONS ON TRANSFER OF SHARES

  	
   

  	
  3

  
	
  Section 2.1.

  	
   

  	
  General

  	
   

  	
  3

  
	
  Section 2.2.

  	
   

  	
  Disposition of
  Common Shares

  	
   

  	
  3

  
	
  Section 2.3.

  	
   

  	
  Disposition of
  Common Shares Upon Retirement

  	
   

  	
  3

  
	
  Section 2.4.

  	
   

  	
  Disposition of
  Common Shares Upon Death or Disability

  	
   

  	
  3

  
	
  Section 2.5.

  	
   

  	
  Disposition of
  Common Shares by Gift or Charitable Donation

  	
   

  	
  4

  
	
  Section 2.7.

  	
   

  	
  Disposition of
  Common Shares with the Consent of Board of Directors

  	
   

  	
  4

  
	
  Section 2.8.

  	
   

  	
  Compliance with
  Law and Regulations

  	
   

  	
  4

  
	
  Section 2.9.

  	
   

  	
  Legend on
  Certificates; Entry of Stop Transfer Orders

  	
   

  	
  5

  
	
  ARTICLE III

  	
   

  	
  STOCKHOLDER COVENANTS

  	
   

  	
  5

  
	
  Section 3.1.

  	
   

  	
  Noncompetition

  	
   

  	
  5

  
	
  Section 3.2.

  	
   

  	
  Nonsolicitation
  of Clients

  	
   

  	
  6

  
	
  Section 3.3.

  	
   

  	
  Nonsolicitation
  of Employees

  	
   

  	
  7

  
	
  Section 3.4.

  	
   

  	
  Transfer of
  Client Relationships

  	
   

  	
  7

  
	
  Section 3.5.

  	
   

  	
  Prior Notice
  Required

  	
   

  	
  7

  
	
  Section 3.6.

  	
   

  	
  Stockholder
  Covenants Generally

  	
   

  	
  7

  
	
  Section 3.7.

  	
   

  	
  Damages

  	
   

  	
  8

  
	
  Section 3.8.

  	
   

  	
  Retirement-Eligible
  Stockholders; Employment Agreements

  	
   

  	
  8

  
	
  ARTICLE IV

  	
   

  	
  REPRESENTATIONS AND WARRANTIES OF THE STOCKHOLDERS

  	
   

  	
  9

  
	
  ARTICLE V

  	
   

  	
  MISCELLANEOUS

  	
   

  	
  9

  
	
  Section 5.1.

  	
   

  	
  Term of the
  Agreement; Termination of Current Stockholders Agreement

  	
   

  	
  9

  
	
  Section 5.2.

  	
   

  	
  Severability

  	
   

  	
  10

  
	
  Section 5.3.

  	
   

  	
  Governing Law

  	
   

  	
  10

  
	
  Section 5.4.

  	
   

  	
  Representatives,
  Successors and Assigns

  	
   

  	
  10

  
	
  Section 5.5.

  	
   

  	
  Further
  Assurances

  	
   

  	
  10

  
	
  Section 5.6.

  	
   

  	
  Execution in
  Counterparts

  	
   

  	
  10

  
	
  Section 5.7.

  	
   

  	
  Amendments;
  Waivers

  	
   

  	
  10

  
	
  Section 5.8.

  	
   

  	
  Submission to
  Jurisdiction; Waiver of Immunity

  	
   

  	
  11

  
	
  Section 5.9.

  	
   

  	
  Specific
  Performance

  	
   

  	
  11

  
	
  Section 5.10.

  	
   

  	
  Notices

  	
   

  	
  11

  
	
  Section 5.11.

  	
   

  	
  Gender

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

EXHIBIT A           STOCKHOLDERS

EXHIBIT B            NON-COMPETITION/NON-SOLICITATION AGREEMENT

 

 

 

STOCKHOLDERS’
AGREEMENT

This Stockholders’ Agreement, dated as of October 30, 2006,
among KBW, Inc., a Delaware corporation (the “Company”), and the persons
listed on Exhibit A hereto, each of whom holds a title as an employee at or
above the level of “Principal” as of the date hereof (individually, a “Stockholder”
and collectively, the “Stockholders”).

WITNESSETH:

WHEREAS, the Company expects to effect, promptly after
the date hereof, the initial public offering of the shares of the Common Stock,
par value $0.01 per share, of the Company (the “Common Stock”) pursuant
to a registration statement filed with the Securities and Exchange Commission
(the “IPO”, and the date on which the IPO is consummated, the “Effective
Time”);

WHEREAS, in order to ensure harmonious relationships
among themselves with respect to the conduct of the business and affairs of the
Company, the Stockholders desire to enter into certain agreements with respect
to the disposition of their Common Stock and various other matters;

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

The following words and phrases as used herein shall have
the following meanings:

(a)           The term “Board of Directors”
shall mean the Board of Directors of the Company, or any committee of such
Board of Directors to the extent expressly authorized by the Board of Directors
to exercise the powers of the Board of Directors under this Agreement.

(b)           The term “Cause” shall have
the meaning accorded such term in the KBW, Inc. 2006 Equity Incentive Plan, filed
by the Company with the Securities and Exchange Commission on September 28,
2006 as Exhibit 10.2 to the Company’s Registration Statement on Form S-1, as
such plan may be amended from time to time.

(c)           The term “Change of Control”
shall have the meaning accorded such term in the KBW, Inc. 2006 Equity
Incentive Plan, filed by the Company with the Securities and Exchange
Commission on September 28, 2006 as Exhibit 10.2 to the Company’s Registration
Statement on Form S-1, as such plan may be amended from time to time.

(d)           The term “Charitable Organization”
shall mean a private foundation or a charitable, civic, educational or other
similar not-for-profit corporation or organization which (in each case)
qualifies under Section 501(c)(3) of the Internal Revenue Code of 1986, as
amended.

 

 

(e)           The term “Common Shares” shall
mean any shares of Common Stock held by a Stockholder on or prior to the
Effective Time and any shares of stock into which such Common Shares may be
converted or exchanged pursuant to a merger, reorganization or consolidation,
or any shares of stock paid out as a dividend in respect of such common shares
(such as pursuant to a spinoff, stock split or otherwise).

(f)            The term “Current Stockholders
Agreement” shall mean the Amended and Restated Stockholders’ Agreement,
dated as of August 1, 2005, among the Company and the Stockholders.

(g)           The term “Disability” shall
mean disability as that term is defined under the Company’s long-term
disability plan in effect at the date of such determination, or any other plan
or definition designated by the Board of Directors for the purpose of this
provision.

(h)           The term “Disposition,” when
used in reference to shares of stock, shall mean any sale, assignment,
transfer, pledge, mortgage, encumbrance, or other disposition, directly or
indirectly, whether or not for value, and whether or not voluntarily, of any
Common Shares, other than by will or intestacy.

(i)            The term “employee” shall
mean any person employed by the Company and/or any Subsidiary who receives
regular and stated compensation other than a pension, retainer or compensation
in the nature of a consulting fee.

(j)            The term “Fair Market Value”
shall mean, as of any date, the average of the daily closing prices for a
Common Share on the New York Stock Exchange for the 20 consecutive business
days (or, if such trading has commenced less than 20 business days prior to the
date in question, the actual number of business days elapsed since the
commencement of such trading) before the date in question.

(k)           The term “own,” when used in
reference to shares of stock, shall mean any shares owned of record or
beneficially.

(l)            The term “Retirement” shall
mean the termination of employment with the Company or any Subsidiary of any
Stockholder who has both (a)(i) reached the age of 60 or older, or (ii) served
as an employee for a sufficient number of years that the sum of such
Stockholder’s age and the number of years served by such Stockholder as an
employee is equal to or greater than 65, and (b) entered into the two-year
Non-competition/Non-solicitation agreement with the Company in the form set
forth on Exhibit B hereto (the “Non-competition/Non-solicitation
Agreement”).

(m)          The term “Subsidiary” or “Subsidiaries”
shall mean any corporation(s) or other entity of which the Company, directly or
indirectly, has the power, whether through the ownership of voting securities, other
ownership interests, contract or otherwise, to elect at least a majority of the
members of such entity’s board of directors or other persons performing similar
functions.

 

2

 

ARTICLE II

LIMITATIONS ON TRANSFER OF SHARES

Section 2.1.            General  Each Stockholder agrees that, in addition to
any restrictions imposed by law, no Stockholder shall make a Disposition of any
Common Shares owned by such Stockholder, except as expressly permitted by and
in accordance with the terms of this Agreement and the terms of the lock-up
agreement entered into between such Stockholder and the underwriters in
connection with the IPO.

Section 2.2.            Disposition of Common Shares.  Except as otherwise specifically provided in
this Agreement:

(a)           No Stockholder may make any Disposition
of his Common Shares prior to the second anniversary of the Effective Time;

(b)           On or after the second anniversary of
the Effective Time and prior to the third anniversary of the Effective Time,
such Stockholder may make one or more Dispositions of his Common Shares
representing, in the aggregate, up to 25% (measured as of the Effective Time)
of such Stockholder’s Common Shares.

(c)           On or after the third anniversary of
the Effective Time and prior to the fourth anniversary of the Effective Time,
in addition to any Dispositions permitted by subparagraph (b) of this Section
2.2, such Stockholder may make one or more Dispositions of his Common Shares
representing, in the aggregate, up to an additional 25% (measured as of the
Effective Time) of such Stockholder’s Common Shares.

(d)           On or after the fourth anniversary of
the Effective Time and prior to the fifth anniversary of the Effective Time, in
addition to any Dispositions permitted by subparagraphs (b) and (c) of this
Section 2.2, such Stockholder may make one or more Dispositions of his Common
Shares representing, in the aggregate, up to an additional 25% (measured as of
the Effective Time) of such Stockholder’s Common Shares.

On or after the fifth
anniversary of the Effective Time, such Stockholder may make Dispositions of
his Common Shares free from any restrictions set forth in this Agreement.

Section 2.3.            Disposition of Common Shares Upon
Retirement.  Notwithstanding any
other provisions of this Agreement, any Stockholder who terminates his employment
and such termination constitutes a Retirement, may, from and after the later of
the date of such Retirement and the second anniversary of the Effective Date,
make Dispositions of Common Shares free from the restrictions set forth in Section
2.2 of this Agreement.

Section 2.4.            Disposition of Common Shares Upon
Death or Disability.  Notwithstanding
any other provisions of this Agreement, any Stockholder who ceases to be an
employee by reason of Disability, or, in the event of the death of a
Stockholder, the estate of such deceased Stockholder, shall have the right from
and after the date such Stockholder

 

3

 

ceases to be an employee
or the date of death, as the case may be, to make Dispositions of Common Shares
free from the restrictions set forth in Section 2.2 of this Agreement.

Section 2.5.            Disposition of Shares Upon
Termination of Employment without Cause. 
Notwithstanding any other provisions of this Agreement, any Stockholder
whose employment is terminated by the Company without Cause shall have the
right from and after the date of such termination to make Dispositions of
Common Shares free from the restrictions set forth in Section 2.2 of this
Agreement

Section 2.6.            Disposition of Common Shares by
Gift or Charitable Donation. 
Notwithstanding any other provisions of this Agreement, a Stockholder
may make a Disposition of Common Shares at any time (i) to a Family Member or a
Family Affiliate who agrees in writing to be bound by all the terms of this
Agreement as though such person or entity were a Stockholder; or (ii) to any
Charitable Organization; provided, that any such Dispositions to
Charitable Organizations exempt from restrictions on transfer by virtue of this
Section 2.6 shall be limited to an aggregate of $150,000 (as measured by the closing
market price on the New York Stock Exchange of the Common Shares on the date of
such Disposition(s)) by any Stockholder during each of the first two annual
periods following the date hereof.

For purposes of this Section 2.5, the following words
shall have the following meanings:

(a)           The term “Family Member” shall
mean, with respect to a Stockholder, the spouse and each parent, child
(including an adopted child), grandchild, sibling, niece and nephew of such Stockholder.

(b)           The
term “Family Affiliate” shall mean, with respect to a Stockholder, each
trust, corporation, limited liability company, partnership or other entity for
the benefit of or controlled solely by, either directly or indirectly, such
Stockholder or his spouse and one or more Family Members, provided that if any
trust, corporation, limited liability company or partnership shall cease to be
so controlled, it shall cease to be a Family Affiliate for all purposes of this
Agreement.

Section 2.7.            Change of Control.  Notwithstanding any other provisions of this
Agreement, the restrictions set forth in Section 2.2 shall terminate
automatically upon a Change of Control.

Section 2.8.            Disposition of Common Shares with
the Consent of Board of Directors. 
Notwithstanding any other provisions of this Agreement, a Stockholder
may make a Disposition of Common Shares of any amount at any time with the
prior written consent of the Board of Directors.

Section 2.9.            Compliance with Law and
Regulations.  Each Stockholder agrees
that any Disposition of Common Shares by such Stockholder shall be in
compliance with any applicable constitution, rule or regulation of, or any
applicable policy of, the National Association of Securities Dealers, Inc., any
of the exchanges or associations or other institutions

4

with which the Company or
any of its Subsidiaries has membership privileges or other privileges, and any
applicable law, rule or regulation of the Commission or any other governmental
agency having jurisdiction.

Section 2.10.          Legend on Certificates; Entry of
Stop Transfer Orders.

(a)           Each Stockholder agrees that each
outstanding certificate representing any Common Shares which are subject to
this Agreement shall bear an endorsement noted conspicuously on each such
certificate reading substantially as follows:

“The securities
represented by this certificate were issued without registration under the
Securities Act of 1933.  No transfer of
such securities may be made without an opinion of counsel, satisfactory to the
Company, that such transfer may properly be made without registration under the
Securities Act of 1933 or that such securities have been so registered under a
registration statement which is in effect at the date of such transfer.

The securities
represented by this certificate are subject to the provisions of an agreement
dated as of ________, 2006 among the Company and certain persons named in Exhibit A
to such agreement, a copy of which is on file at the principal executive office
of the Company, and such securities may be sold, assigned, pledged or otherwise
transferred only in accordance with such agreement.”

(b)           Each Stockholder agrees to the entry
of stop transfer orders against the transfer of legended certificates
representing Common Shares except in compliance with this Agreement.

ARTICLE III

STOCKHOLDER COVENANTS

Section 3.1.            Noncompetition.

(a)           In view of each Stockholder’s
importance to the Company, each Stockholder hereby agrees that the Company
would likely suffer significant harm from such Stockholder’s competing with the
Company during such Stockholder’s Employment Period and for some period of time
thereafter.  Accordingly, each
Stockholder hereby agrees that such Stockholder will not, without the written
consent of the Company, during the Employment Period and the Coverage Period:

(i)    form, or acquire a 5% or greater equity
ownership, voting or profit participation interest in, any Competitive
Enterprise; or

(ii)   associate (including, but not limited to,
association as an officer, employee, partner, director, consultant, agent or
advisor) with any Competitive Enterprise and in connection with such association
engage in, or directly or indirectly manage or supervise personnel engaged in,
any activity

 

5

 

(1)           which is similar or substantially
related to any activity in which such Stockholder was engaged, in whole or in
part, at the Company,

(2)           for which such Stockholder had direct
or indirect managerial or supervisory responsibility at the Company, or

(3)           which calls for the application of
the same or similar specialized knowledge or skills as those utilized by such
Stockholder in such Stockholder’s activities at the Company, and, in any such
case, irrespective of the purpose of the activity or whether the activity is or
was in furtherance of advisory, agency, proprietary or fiduciary business of
either the Company or the Competitive Enterprise.

(b)           For
purposes of the Stockholder Covenants, a “Competitive Enterprise” is a
business enterprise that engages in, or owns or controls a significant interest
in any entity that engages in financial services such as investment banking,
public or private finance, financial advisory services, private investing (for
anyone other than such Stockholder and members of such Stockholder’s family),
merchant banking, asset or hedge fund management, securities brokerage, sales,
lending, custody, clearance, settlement or trading.

(c)           For
purposes of the Stockholder Covenants, the term “Coverage Period” means
the period beginning on, and including, the Date of Termination, and ending on
the date that is ninety (90) days following the Date of Termination.

(d)           For
purposes of the Stockholder Covenants, the term “Date of Termination”
means (i) in the case of a termination of employment by a Stockholder, the date
that is ten (10) business days after the delivery of written notice of such Stockholder’s
termination, or such earlier date as may be determined by the Company in its
sole discretion, and (ii) in the case of a termination of employment by
the Company, the date on which written notice is delivered by the Company to
such Stockholder (unless the Company in its sole discretion specifies another
date of termination in such notice).

(e)           For purposes of the Stockholder
Covenants, with respect to any particular Stockholder, the term “Employment
Period” means the period beginning on the date hereof and ending on the
Date of Termination.

Section 3.2.            Nonsolicitation of Clients.

(a)           Each Stockholder hereby agrees that
during the Employment Period and the Coverage Period, such Stockholder will
not, in any manner, directly or indirectly, (1) Solicit a Client to
transact business with a Competitive Enterprise or to reduce or refrain from
doing any business with the Company or (2) interfere with or damage (or attempt
to interfere with or damage) any relationship between the Company and a Client.

(b)           For purposes of the Stockholder
Covenants, the term “Solicit” means any direct or indirect communication
of any kind whatsoever, regardless of by whom initiated, inviting, advising,
encouraging or requesting any person or entity, in any manner, to take or
refrain from taking any action.

 

6

(c)           For purposes of the Stockholder
Covenants, the term “Client” means any client or prospective client of
the Company to whom such Stockholder provided services, or for whom such
Stockholder transacted business, or whose identity became known to such
Stockholder in connection with such Stockholder’s relationship with or
employment by the Company.

Section 3.3.            Nonsolicitation of Employees.  Each Stockholder hereby agrees that during
the Employment Period and the Coverage Period, such Stockholder will not, in
any manner, directly or indirectly, Solicit any person who is an Employee (or
was an employee of KBW at any time during the six-month period prior to any
such solicitation) to resign from the Company or to apply for or accept
employment with any Competitive Enterprise.

Section 3.4.            Transfer of Client Relationships.  During the Coverage Period, each Stockholder
hereby agrees to take all actions and do all such things as may be reasonably
requested by the Company from time to time to maintain for the Company the
business, goodwill, and business relationships with any of the Company’s
Clients with whom such Stockholder worked during the term of such Stockholder’s
employment.

Section 3.5.            Prior Notice Required. 
Each Stockholder hereby agrees that prior to accepting employment with
any other person or entity during the Employment Period or the Coverage Period,
such Stockholder will provide such prospective employer with written notice of
the provisions of this Agreement, with a copy of such notice delivered
simultaneously to the General Counsel of the Company.

Section 3.6.            Stockholder Covenants Generally.

(a)           Each Stockholder’s covenants as set
forth in this Article III are from time to time referred to herein as the “Stockholder
Covenants.”  If any of the
Stockholder Covenants is finally held to be invalid, illegal or unenforceable
(whether in whole or in part), such Stockholder Covenant shall be deemed
modified to the extent, but only to the extent, of such invalidity, illegality
or unenforceability and the remaining Stockholder Covenants shall not be
affected thereby; provided, however, that if any of the
Stockholder Covenants is finally held to be invalid, illegal or unenforceable
because it exceeds the maximum scope determined to be acceptable to permit such
provision to be enforceable, such Stockholder Covenant will be deemed to be
modified to the minimum extent necessary to modify such scope in order to make
such provision enforceable hereunder.

(b)           Each Stockholder understands that the
Stockholder Covenants may limit such Stockholder’s ability to earn a livelihood
in a business similar to the business of the Company.

(c)           Each Stockholder acknowledges that a
violation on such Stockholder’s part of any of the Stockholder Covenants would
cause irreparable damage to the Company. 
Accordingly, each Stockholder agrees that the Company will be entitled
to injunctive relief for any actual or threatened violation of any of the
Stockholder Covenants in addition to any other remedies it may have.

 

7

Section 3.7.            Damages.

(a)           Each Stockholder acknowledges that
such Stockholder’s compliance with the Stockholder Covenants is an important
factor to the continued success of the Company’s operations and its future
prospects.  Each Stockholder and the
Company agree that if at any time such Stockholder were to breach any of the
Stockholder Covenants, the damages to the Company would be material, but that
the amount of such damages would be uncertain and not readily
ascertainable.  Accordingly, each
Stockholder and the Company agree that if such Stockholder breaches any of the
Stockholder Covenants at any time, such Stockholder shall forfeit to the
Company that number of his or her Common Shares that remain subject to the
restrictions on Disposition under Section 2.2 of this Agreement at such time
(it being understood that, for purposes of this Section 3.7, any Dispositions
otherwise permitted under Section 2.2 at such time shall be prohibited with
respect to the Stockholder) with a Fair Market Value at such time equal
to the dollar amount (the “Liquidated Damages”) by which the Fair Market
Value of all of the Common Shares held by the Stockholder at the time of such
breach exceeds the original purchase price for such shares by the Stockholder.

(b)           Each Stockholder and the Company
agree that the Liquidated Damages are reasonable in proportion to the probable
damages likely to be sustained by the Company if such Stockholder breaches at
any time any of the Stockholder Covenants, that the amount of actual damages to
be sustained by the Company in the event of such breach is incapable of precise
estimation and that such forfeiture is not intended to constitute a penalty or
punitive damages for any purposes.  The
forfeiture by such Stockholder of his or her Common Shares will not be
construed as a release or waiver by the Company of the right to prevent the
continuation of any such violation of such Stockholder Covenants in equity
(including injunctive relief) or otherwise.

(c)           Each Stockholder acknowledges and
agrees that the Liquidated Damages pursuant to this Section 3.7 shall be in
addition to, and not in lieu of, any required forfeitures of awards that may be
granted to such Stockholder in the future under one or more of the Company’s
compensation and benefit plans.

Section 3.8.            Retirement-Eligible Stockholders;
Employment Agreements.  In the case
of any Stockholder whose termination of employment constitutes a Retirement, or
any Stockholder who is party to an employment agreement with the Company or any
of its Subsidiaries, to the extent any provisions of such Stockholder’s
Non-competition/Non-Solicitation Agreement or employment agreement (as
applicable, an “Other Agreement”) relate to the subject matter of this
Article III and conflict with the provisions of this Article III in any respect
(including without limitation as to time periods or restricted activities), the
relevant provisions of the Other Agreement shall control.

 

8

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF THE STOCKHOLDERS

Section 4.1.            Each Stockholder severally
represents and warrants for himself to the Company and to each other
Stockholder that:

(a)           At the Effective Time, such
Stockholder has good and marketable title to the Common Shares, free and clear
of any pledge, lien, security interest, charge, claim, equity or encumbrance of
any kind, other than pursuant to this Agreement or pursuant to the Current
Stockholders Agreement;

(b)           This Agreement has been duly
authorized, executed and delivered by such Stockholder or by his
attorney-in-fact on behalf of such Stockholder and constitutes a valid and
binding obligation of such Stockholder;

(c)           The execution and delivery of this
Agreement and the consummation of the transactions contemplated herein do not
and will not conflict with or result in a breach by such Stockholder of, or
constitute a default by such Stockholder under, any agreement or instrument to
which such Stockholder is a party or by which such Stockholder or his property
may be bound, or any existing applicable law, rule, regulation, judgment, order
or decree of any government, governmental instrumentality or court, domestic or
foreign, having jurisdiction over such Stockholder or his property; and

(d)           Such Stockholder has acquired his
Common Shares for his own account and not with a view to the sale or
distribution thereof.

ARTICLE V

MISCELLANEOUS

Section 5.1.            Term of the Agreement;
Termination of Current Stockholders Agreement.

(a)           Except as provided in Section 5.4 and
this Section, the term of this Agreement shall continue with respect to any
Stockholder party hereto, until such time as such party no longer has any
rights or obligations hereunder, and, with respect to the Company, until such
time as there is no longer any Stockholder who continues to be a party hereto.

(b)           Unless this Agreement is earlier
terminated pursuant to this Section 5.1 hereof, a signatory to this Agreement
shall be bound by its terms until the later of (i) such time as such
signatory is no longer subject to the provisions of Article III of this
Agreement and (ii) such time as all Common Shares owned by such signatory
are free of the provisions of Article II of this Agreement.  This Agreement may be terminated prior to the
time specified in Section 5.1(a) by written agreement of the Company and the
holders of a majority of the Common Shares then subject to this Agreement.

 

9

(c)           This
Agreement shall be effective as of the Effective Time, and as of such time the
Current Stockholders Agreement shall be terminated and be of no further force
and effect.  For the avoidance of doubt,
upon the Effective Time this Agreement shall embody the entire understanding of
the parties hereto, and shall supersede in all respects (including, without
limitation, any provisions relating to redemption or repurchase by the Company
of its Common Shares) all prior agreements entered into by the Company or its
Subsidiaries relating to the subject matter of this Agreement.

Section 5.2.            Severability.  If the final determination of a court of
competent jurisdiction declares, after the expiration of the time within which
judicial review (if permitted) of such determination may be perfected that any
term or provision hereof is invalid 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 5.3.            Governing Law. 
This Agreement shall be governed by and construed in accordance with the
laws of the State of Delaware, without giving effect to the principles of
conflicts of laws thereof.

Section 5.4.            Representatives, Successors and
Assigns.  This Agreement shall be
binding upon and inure to the benefit of the respective parties hereto and
their respective legatees, legal representatives, successors and assigns; provided,
however, that a Stockholder may not assign this Agreement or any of his
rights hereunder without the consent of the Company and any assignment without
such consent by a Stockholder shall be void. 
Each Stockholder shall use his best efforts to cause each Family
Affiliate and Family Member of such Stockholder to comply with the terms and
provisions of this Agreement, which obligations shall be in addition to the
conditions of any permitted Disposition to such entities provided in Section 2.5
hereof.

Section 5.5.            Further Assurances.  Each Stockholder agrees to execute such additional
documents and take such further action as may be reasonably necessary to effect
the provisions of this Agreement.

Section 5.6.            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.

Section 5.7.            Amendments; Waivers.

(a)           This Agreement may not be amended,
modified, revoked or changed unless such modification is approved by the
Company and the Board of Directors.

(b)           The
failure of any party at any time or times to require performance of any
provision of this Agreement shall in no manner affect the rights at a later
time to enforce

10

the same.  No
waiver by any party of the breach of any term contained in this Agreement,
whether by conduct or otherwise, in any one or more instances, shall be deemed
to be or construed as a further or continuing waiver of any such breach or the
breach of any other term of this Agreement.

Section 5.8.            Submission to Jurisdiction;
Waiver of Immunity.  Each Stockholder
for itself and its successors and assigns, hereby irrevocably (a) agrees that
any legal or equitable action, suit or proceeding against such Stockholder arising
out of or relating to this Agreement or any transaction contemplated hereby or
the subject matter of any of the foregoing may be instituted in any state or
federal court in the State of Delaware, (b) submits itself to the exclusive
jurisdiction of any state or federal court of competent jurisdiction in the
State of Delaware for purposes of any such action, suit or proceeding, (c)
waives any objection, and agrees not to assert as a defense in any such action,
suit or proceeding, that (i) it is not subject thereto or that such action,
suit or proceeding may not be brought or is not maintainable in said courts,
(ii) the venue thereof may not be appropriate and (ii) the internal laws of the
State of Delaware do not govern the validity, interpretation or effect of this
Agreement, (d) waives any immunity from jurisdiction to which it might
otherwise be entitled in any such action, suit or proceeding which may be
instituted in any state or federal court in the State of Delaware, and (e)
waives any immunity from the maintaining of an action against it to enforce any
judgment for money obtained in any such action, suit or proceeding and, to the
extent permitted by applicable law, any immunity from execution.

Section 5.9.            Specific Performance.  Each of the parties hereto acknowledges that
it will be impossible to measure in money the damage to the Company or the
Stockholders if any party hereto fails to comply with the provisions of this
Agreement and each party hereto agrees that in the event of any such failure,
neither the Company nor any Stockholder will have an adequate remedy at
law.  Therefore, the Company and each
Stockholder, in addition to all of the other remedies which may be available at
law or in equity, shall have the right to equitable relief, including, without
limitation, the right to enforce specifically the provisions of this Agreement
and to obtain injunctive relief against any violation thereof or otherwise.

Section 5.10.          Notices.  All notices to be given by any party
hereunder shall be in writing and shall be deemed to have been duly given if
mailed, by first class or registered mail or overnight courier, telexed or
telecommunicated, sent by telegram, or delivered to a Stockholder at such
Stockholder’s address as reflected in the books and records of the Company or
otherwise to such Stockholder at his principal place of employment with the
Company, or in the case of the Company, to it at the following address:

KBW, Inc.

787 Seventh Avenue

New York, NY 10019

Attention:  General Counsel

The parties may change their respective addresses for
purposes of notices hereunder by giving notice of such change to all other
parties in the manner provided in this Section.

 

11

Section 5.11.          Gender.  For the purposes of this Agreement, the words
“he”, “his” or “himself” shall be interpreted to include the masculine,
feminine and corporate or trust form.

 

12

IN WITNESS
WHEREOF, the parties hereto have caused this instrument to be duly executed as
of the day and year first above written.

	
   

  	
  KBW, INC.

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ MITCHELL B. KLEINMAN

  

 

 

 

13

EXHIBIT
A

STOCKHOLDERS

	
  Name of Stockholder

  	
   

  	
  Signature

  
	
  ANDERSON, SCOTT R.

  	
   

  	
   

  
	
  AX, ROBERT

  	
   

  	
   

  
	
  BANG, J. PETER J.

  	
   

  	
   

  
	
  BEEBE, JOSEPH

  	
   

  	
   

  
	
  BELL, ROBIN P.

  	
   

  	
   

  
	
  BELL, ROBIN P. FAMILY
  TRUST

  	
   

  	
   

  
	
  BERRY, JOSEPH J. GIFT FUND

  	
   

  	
   

  
	
  BERRY, JOSEPH S.

  	
   

  	
   

  
	
  BESHLIAN, MAURICE

  	
   

  	
   

  
	
  BIRD, JULIAN

  	
   

  	
   

  
	
  BJORKEDAL, NIKOLAI H.

  	
   

  	
   

  
	
  BROWNE JR, DANIEL

  	
   

  	
   

  
	
  BUCKLEY, RICHARD

  	
   

  	
   

  
	
  BUCKLEY, THOMAS

  	
   

  	
   

  
	
  CAFFREY, BERNARD

  	
   

  	
   

  
	
  CAHILL, JAMES

  	
   

  	
   

  
	
  CAHILL, JAMES W 2006 GRAT

  	
   

  	
   

  
	
  CAHILL, JAMES TRUST
  (KATHLEEN)

  	
   

  	
   

  
	
  CAHILL, JAMES TRUST
  (KERRY)

  	
   

  	
   

  
	
  CAHILL, JAMES TRUST
  (CHRISTOPHER)

  	
   

  	
   

  
	
  CANNON, FREDERICK

  	
   

  	
   

  
	
  CARSTATER, KENT D.

  	
   

  	
   

  
	
  CHENG, JILL

  	
   

  	
   

  
	
  CIQUERA, JAMES

  	
   

  	
   

  
	
  COATS, E. CRAIG

  	
   

  	
   

  
	
  CROWLEY, CHARLES A.

  	
   

  	
   

  
	
  CURRAN, DENNIS

  	
   

  	
   

  

 

 

 

 

 

	
  DALENA, JOHN J.

  	
   

  	
   

  
	
  DANIEL, PETER

  	
   

  	
   

  
	
  DAY, JACQUELINE

  	
   

  	
   

  
	
  DE
  ALMEIDA, JR., ALBERT A.

  	
   

  	
   

  
	
  DELSON, DONALD W.

  	
   

  	
   

  
	
  DERISO, WILLIAM

  	
   

  	
   

  
	
  DIANTONIO, ALBERT

  	
   

  	
   

  
	
  DILASCIA,DARYLE A.

  	
   

  	
   

  
	
  DISCLAIMER TRUST (JOSEPH J.
  BERRY)

  	
   

  	
   

  
	
  DUFFY, JOHN G.

  	
   

  	
   

  
	
  DUFFY, JOHN G. 2006 GRAT

  	
   

  	
   

  
	
  DUFFY, JOHN TRUST (BRIAN)

  	
   

  	
   

  
	
  DUFFY, JOHN TRUST (KEVIN)

  	
   

  	
   

  
	
  DUFFY, JOHN TRUST (KARA)

  	
   

  	
   

  
	
  DUFFY, JOHN TRUST
  (CAITLIN)

  	
   

  	
   

  
	
  DUNN, GEOFFERY

  	
   

  	
   

  
	
  ECCLES-WILLIAMS, MARK

  	
   

  	
   

  
	
  EKERT, THOMAS

  	
   

  	
   

  
	
  EVANS, JEFFREY

  	
   

  	
   

  
	
  FINK, JOSEPHINE A.

  	
   

  	
   

  
	
  FLOYD, DANIEL

  	
   

  	
   

  
	
  FURBISH, BRIAN M.

  	
   

  	
   

  
	
  GALLANT, CLIFFORD H.

  	
   

  	
   

  
	
  GHARI, CHRISTOPHER

  	
   

  	
   

  
	
  GIAMBRONE, ROBERT

  	
   

  	
   

  
	
  GOWSKI, WILLIAM

  	
   

  	
   

  
	
  GRANGER, DAVID A.

  	
   

  	
   

  
	
  GRIESSMAN, KATRINA

  	
   

  	
   

  
	
  GRUBELICH, ERIC J.

  	
   

  	
   

  
	
  GST-EXEMPT TRUST (JOSEPH
  J. BERRY)

  	
   

  	
   

  
	
  GUBA, TIMOTHY

  	
   

  	
   

  
	
  HAGGARD, ROBERT

  	
   

  	
   

  
	
  HANLEY, HAROLD T.

  	
   

  	
   

  

 

 

 

 

 

	
  HANLEY, JOHN

  	
   

  	
   

  
	
  HARRALSON, JEFFERSON

  	
   

  	
   

  
	
  HAWKINS, WILLIAM

  	
   

  	
   

  
	
  HEALEY, JR. JAMES

  	
   

  	
   

  
	
  HEALEY,
  JR., JAMES T GRAT (2006)

  	
   

  	
   

  
	
  HENNINGSON, WILLIAM A.

  	
   

  	
   

  
	
  HERR, RICHARD A.

  	
   

  	
   

  
	
  HEWES, CECILY

  	
   

  	
   

  
	
  HITCHINGS, CHRISTOPHER

  	
   

  	
   

  
	
  HOMPE, JOHN T.

  	
   

  	
   

  
	
  HOWARD, JOHN N., JR.

  	
   

  	
   

  
	
  HOWARD, STEPHEN

  	
   

  	
   

  
	
  HUGHES, ROBERT

  	
   

  	
   

  
	
  HUTCHINSON, ROBERT

  	
   

  	
   

  
	
  HUTSTON, JAMES

  	
   

  	
   

  
	
  JACHYM, PETER

  	
   

  	
   

  
	
  JOHNSTONE, MARY

  	
   

  	
   

  
	
  KAMPHAUS, MARK

  	
   

  	
   

  
	
  KARAMANOS, GEORGE

  	
   

  	
   

  
	
  KAVANAGH, BRIAN

  	
   

  	
   

  
	
  KENT, STEVEN P.

  	
   

  	
   

  
	
  KLEINMAN, MITCHELL B.

  	
   

  	
   

  
	
  KONRAD, DAVID

  	
   

  	
   

  
	
  KRASUTSKY, ALEXANDER

  	
   

  	
   

  
	
  KREPPEIN, EDWARD

  	
   

  	
   

  
	
  KURLAND, SETH

  	
   

  	
   

  
	
  LAMBERT, JEAN-PIERRE

  	
   

  	
   

  
	
  LEE, ROBERT

  	
   

  	
   

  
	
  LIPPONEN, JUKKA I

  	
   

  	
   

  
	
  LONG, PATRICK

  	
   

  	
   

  
	
  MABRY, IV, JAMES C.

  	
   

  	
   

  
	
  MACDONALD, MICHAEL

  	
   

  	
   

  
	
  MARITAL TRUST (JOSEPH J.
  BERRY)

  	
   

  	
   

  

 

 

 

 

 

	
  MATTALIANO, PAUL

  	
   

  	
   

  
	
  MCCLOSKEY, JEFFREY

  	
   

  	
   

  
	
  MCCORRY, PETER

  	
   

  	
   

  
	
  MCJOYNT, PATRICIA A.

  	
   

  	
   

  
	
  MCMAHEN, CRAIG R

  	
   

  	
   

  
	
  MCMURCHY, KEVIN

  	
   

  	
   

  
	
  MEENAN, KEVIN P.

  	
   

  	
   

  
	
  MERDIAN, DIANE FAMILY
  TRUST

  	
   

  	
   

  
	
  MICHAUD, THOMAS B.

  	
   

  	
   

  
	
  MILLER, SETH C.

  	
   

  	
   

  
	
  MOELLER, JOSEPH

  	
   

  	
   

  
	
  MORENO, VASCO

  	
   

  	
   

  
	
  MORGAN, J. TIMOTHY

  	
   

  	
   

  
	
  MORRIS, EVAN

  	
   

  	
   

  
	
  MURPHY, JOSEPH

  	
   

  	
   

  
	
  NON-EXEMPT TRUST (JOSEPH
  J. BERRY)

  	
   

  	
   

  
	
  NUCERA, BRYCE

  	
   

  	
   

  
	
  O’BRIEN, EDWARD

  	
   

  	
   

  
	
  O’BRIEN, MICHAEL T.

  	
   

  	
   

  
	
  OLITSKY, DAVID

  	
   

  	
   

  
	
  ORLANDO, LINDA

  	
   

  	
   

  
	
  PATERSON, GREIG

  	
   

  	
   

  
	
  PAWLAK, MARK

  	
   

  	
   

  
	
  PENNY, JAMES B.

  	
   

  	
   

  
	
  PLANER, JR., ROBERT G.

  	
   

  	
   

  
	
  PLUNKETT, ROBERT

  	
   

  	
   

  
	
  RAGAN, JOHN

  	
   

  	
   

  
	
  RAMIREZ, MANUEL

  	
   

  	
   

  
	
  RE, KATHERINE

  	
   

  	
   

  
	
  REIDEL, DOUGLAS L.

  	
   

  	
   

  
	
  ROBINS, JASON

  	
   

  	
   

  
	
  ROGOZ, ROBERT

  	
   

  	
   

  
	
  ROOT, GREGORY

  	
   

  	
   

  

 

 

 

 

 

	
  ROTH, PETER

  	
   

  	
   

  
	
  RUNCIMAN, ANGUS

  	
   

  	
   

  
	
  RYBECK, DEAN W.

  	
   

  	
   

  
	
  RYBECK, DEAN W GRAT (2006)

  	
   

  	
   

  
	
  SAUNDERS, BENJAMIN H.

  	
   

  	
   

  
	
  SAVITCH, ERIC

  	
   

  	
   

  
	
  SCHULZ, STEPHEN

  	
   

  	
   

  
	
  SCHUMAN, JEFFREY R.

  	
   

  	
   

  
	
  SENCHAK, ANDREW M.

  	
   

  	
   

  
	
  SHANAHAN, KENNETH

  	
   

  	
   

  
	
  SHAW, JARED

  	
   

  	
   

  
	
  SHEPPARD, ROBERT

  	
   

  	
   

  
	
  SHEUMACK, NICHOLAS J.

  	
   

  	
   

  
	
  SHOMO, IV, CHARLES E.

  	
   

  	
   

  
	
  SLOANE, CHARLES

  	
   

  	
   

  
	
  SMITH, DAVID

  	
   

  	
   

  
	
  SMITH, LAUREN

  	
   

  	
   

  
	
  SMITH, RICHARD

  	
   

  	
   

  
	
  SPALLUTO, JOSEPH J.

  	
   

  	
   

  
	
  SPINNER, KEVIN

  	
   

  	
   

  
	
  SPROTTE, ROBERT

  	
   

  	
   

  
	
  STAFFORD, NICHOLAS

  	
   

  	
   

  
	
  STAPLETON, ROBERT

  	
   

  	
   

  
	
  STEVENS, JAMES

  	
   

  	
   

  
	
  THOMAS, MARK

  	
   

  	
   

  
	
  TONGE, MATTHEW

  	
   

  	
   

  
	
  ULLMAN, DONALD

  	
   

  	
   

  
	
  VAN ETTEN, JUSTIN M.

  	
   

  	
   

  
	
  VOORHEES, THOMAS

  	
   

  	
   

  
	
  WASSMUNDT, FREDERICK

  	
   

  	
   

  
	
  WEBBER, COURTNEY

  	
   

  	
   

  
	
  WEBER, WILLIAM

  	
   

  	
   

  
	
  WEINTRAUB, JAY M.

  	
   

  	
   

  

 

 

 

 

 

	
  WENZEL, WILLAIM

  	
   

  	
   

  
	
  WESTHELLE, TED

  	
   

  	
   

  
	
  WHITESIDE, KEVIN J.

  	
   

  	
   

  
	
  WILSON, MARK

  	
   

  	
   

  
	
  WIRTH, PETER J.

  	
   

  	
   

  
	
  WISHNER, JEFFREY

  	
   

  	
   

  
	
  WOLFE, DERON

  	
   

  	
   

  
	
  WONG, WALTER

  	
   

  	
   

  
	
  WYNNE-GRIFFITH, RICHARD

  	
   

  	
   

  
	
  ZANARDO, MARCELLO

  	
   

  	
   

  
	
  ZIMRING, STACEY

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}]]