Document:

Exhibit 10.11

 

TRANSITION
SERVICES AGREEMENT

 

by and
among

 

SOCIÉTÉ GÉNÉRALE

 

SG AMERICAS, INC.,

 

SG
AMERICAS SECURITIES HOLDINGS, INC.,

 

COWEN AND
COMPANY, LLC

 

and

 

COWEN
GROUP, INC.

 

 

Dated as
of                                     ,
2006

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
  ARTICLE I

  	
  DEFINITIONS

  	
  1

  
	
  SECTION 1.01.

  	
  Certain Defined Terms

  	
  1

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
  SERVICES AND TERMS

  	
  4

  
	
  SECTION 2.01.

  	
  Initial Services

  	
  4

  
	
  SECTION 2.02.

  	
  Custom Modifications

  	
  4

  
	
  SECTION 2.03.

  	
  Provider Changes to
  Services

  	
  5

  
	
  SECTION 2.04.

  	
  Cooperation

  	
  5

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
  PERFORMANCE AND RECEIPT
  OF SERVICES; STANDARDS

  	
  5

  
	
  SECTION 3.01.

  	
  Standard for Services

  	
  5

  
	
  SECTION 3.02.

  	
  Volume and Quantity of
  Services

  	
  5

  
	
  SECTION 3.03.

  	
  Compliance with Laws

  	
  6

  
	
  SECTION 3.04.

  	
  Transitional Nature of
  Services

  	
  6

  
	
  SECTION 3.05.

  	
  Use of Third Parties to
  Provide Services

  	
  6

  
	
  SECTION 3.06.

  	
  Designation of Services
  Managers

  	
  6

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
  Billing; taxes

  	
  7

  
	
  SECTION 4.01.

  	
  Service Charges and
  Other Costs; Payments

  	
  7

  
	
  SECTION 4.02.

  	
  Invoices; Payment

  	
  7

  
	
  SECTION 4.03.

  	
  Disputes

  	
  7

  
	
  SECTION 4.04.

  	
  Taxes

  	
  8

  
	
  SECTION 4.05.

  	
  No Right to Set-Off

  	
  8

  
	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
  Prior Service level
  AGREEMENTS

  	
  8

  
	
  SECTION 5.01.

  	
  Service Level
  Agreements

  	
  8

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
  ADDITIONAL AGREEMENTS

  	
  9

  
	
  SECTION 6.01.

  	
  Consents

  	
  9

  
	
  SECTION 6.02.

  	
  Access

  	
  9

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
  INDEMNIFICATION;
  LIMITATION ON LIABILITY

  	
  10

  
	
  SECTION 7.01.

  	
  Limited Liability of a
  Provider

  	
  10

  
	
  SECTION 7.02.

  	
  Indemnification by Each
  Provider

  	
  10

  
	
  SECTION 7.03.

  	
  Indemnification by Each
  Recipient

  	
  10

  
	
  SECTION 7.04.

  	
  Indemnification
  Procedures

  	
  11

  
	
  SECTION 7.05.

  	
  Limitation on Liability

  	
  11

  
	
  SECTION 7.06.

  	
  Liability for Payment
  Obligations

  	
  11

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
  DISPUTE RESOLUTION

  	
  11

  
	
  SECTION 8.01.

  	
  .Dispute Resolution

  	
  11

  
				

 

i

 

	
   

  	
   

  	
  Page

  
	
  ARTICLE IX

  	
  TERMINATION

  	
  12

  
	
  SECTION 9.01.

  	
  Termination Rights;
  Post-Termination Transition

  	
  12

  
	
  SECTION 9.02.

  	
  Effect of Termination

  	
  12

  
	
  SECTION 9.03.

  	
  Survival

  	
  12

  
	
   

  	
   

  	
   

  
	
  ARTICLE X

  	
  GENERAL PROVISIONS

  	
  13

  
	
  SECTION 10.01.

  	
  Independent Contractors

  	
  13

  
	
  SECTION 10.02.

  	
  Regulatory Approval and
  Compliance

  	
  13

  
	
  SECTION 10.03.

  	
  Confidential
  Information

  	
  13

  
	
  SECTION 10.04.

  	
  Counterparts; Entire
  Agreement; Corporate Power; Facsimile Signatures

  	
  14

  
	
  SECTION 10.05.

  	
  Governing Law

  	
  14

  
	
  SECTION 10.06.

  	
  Notices

  	
  14

  
	
  SECTION 10.07.

  	
  Severability

  	
  15

  
	
  SECTION 10.08.

  	
  Assignability; No
  Third-Party Beneficiaries

  	
  16

  
	
  SECTION 10.09.

  	
  Subsidiaries

  	
  16

  
	
  SECTION 10.10.

  	
  Waivers

  	
  16

  
	
  SECTION 10.11.

  	
  Amendments

  	
  17

  
	
  SECTION 10.12.

  	
  Interpretation

  	
  17

  
	
  SECTION 10.13.

  	
  Mutual Drafting

  	
  17

  
				

 

ii

 

SCHEDULES

 

	
  SCHEDULE A

  	
  SERVICES PROVIDED BY SG TO COWEN LLC

  	
   

  
	
   

  	
   

  	
   

  
	
  Schedule A-1

  	
  Business Continuity Management

  	
   

  
	
  Schedule A-2

  	
  Facilities Management

  	
   

  
	
  Schedule A-3

  	
  Access to SG Data Room and E-mail
  Archives

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULE B

  	
  SERVICES PROVIDED BY COWEN LLC TO SG

  	
   

  
	
   

  	
   

  	
   

  
	
  Schedule B-1

  	
  Merchant Banking

  	
   

  
	
  Schedule B-2

  	
  Library

  	
   

  
	
  Schedule B-3

  	
  Training of Analysts

  	
   

  
				

 

iii

 

This
Transition Services Agreement, dated as of                               ,
2006, is made by and among SOCIÉTÉ GÉNÉRALE, a French banking corporation (“SG”),
SG AMERICAS, INC., a Delaware corporation (“SGAI”), SG AMERICAS
SECURITIES HOLDINGS, INC., a Delaware corporation (“SGASH”),
COWEN AND COMPANY, LLC, a Delaware limited liability company formerly known as “SG
Cowen & Co., LLC” (“Cowen LLC”), and COWEN GROUP, INC., a
Delaware corporation (“Cowen Inc.”).

 

RECITALS

 

WHEREAS, SG and Cowen LLC are parties to
Service Level Agreements (as defined herein) under which they have agreed to
provide certain services to each other in connection with the operation of
their respective businesses;

 

WHEREAS, SG, SGAI and SGASH have determined
that it is appropriate and advisable to separate the Cowen Business (as defined
herein) from the SG Business (as defined herein) (the “Separation”);

 

WHEREAS, SG, SGAI, SGASH, Cowen LLC and Cowen
Inc. have entered into a Separation Agreement, dated as of the date hereof (the
“Separation Agreement”), which sets forth certain terms and conditions
relating to the Separation, including the terms and conditions applicable to an
initial public offering by Cowen Inc. (the “Cowen IPO”); and

 

WHEREAS, in order to ensure an orderly
transition under the Separation Agreement, (a) prior to the Cowen IPO, SG
and Cowen LLC will continue to provide, or cause to be provided, certain
services to each other, in accordance with the terms and subject to the
conditions set forth in the Service Level Agreements, and (b) following
the Cowen IPO, SG, Cowen Inc. and Cowen LLC will continue to provide, or cause
to be provided, certain services to each other in accordance with the terms and
subject to the conditions set forth herein;

 

NOW,
THEREFORE, in consideration of the mutual agreements,
provisions and covenants contained in this Agreement and for other good and
valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the Parties hereby agree as follows:

 

ARTICLE I

DEFINITIONS

 

SECTION 1.01.  Certain Defined Terms.  Unless otherwise defined herein, all
capitalized terms used herein shall have the same meaning as in the Separation
Agreement.

 

The following
capitalized terms used in this Agreement shall have the meanings set forth
below:

 

“Agreement”
means this Transition Services Agreement, together with each of the schedules
hereto.

 

“Breaching
Party” has the meaning given to such term in Section 9.01(a).

 

 

“Business
Day” has the meaning given to such term in the Separation Agreement.

 

“Consents”
has the meaning given to such term in Section 6.01(a).

 

“Cowen
Acquired Business” has the meaning given to such term in Section 10.08.

 

“Cowen
Business” has the meaning given to such term in the Separation Agreement.

 

“Cowen
Divested Business” has the meaning given to such term in Section 10.08.

 

“Cowen
Group” means, collectively, Cowen Inc. and the Cowen Inc. Subsidiaries.

 

“Cowen Inc.”
has the meaning given to such term in the Preamble to this Agreement.

 

“Cowen IPO”
has the meaning given to such term in the Recitals to this Agreement.

 

“Cowen
Services” has the meaning given to such term in Section 2.01(b).

 

“Cowen
Services Manager” has the meaning given to such term in Section 3.06(b).

 

“Cowen
Subsidiary” has the meaning given to such term in the Separation Agreement.

 

“Information”
has the meaning given to such term in the Separation Agreement.

 

“Information
Systems” means computing, telecommunications or other electronic operating
or processing systems or environments, including, without limitation, computer
programs, data, databases, computers, computer libraries, communications
equipment, networks and systems.  When
referenced in connection with Services, Information Systems shall mean the
Information Systems accessed and/or used in connection with the Services.

 

“Liabilities”
has the meaning given to such term in the Separation Agreement.

 

“Merchant
Banking Fund” means SG Merchant Banking Fund L.P., a Delaware limited
partnership.

 

“Non-breaching
Party” has the meaning set forth in Section 9.01(a).

 

“Other
Costs”  has the meaning set forth in Section 4.01(a).

 

“Parties”
means the parties to this Agreement.

 

“Person”
has the meaning given to such term in the Separation Agreement.

 

“Principal
Transaction Documents” has the meaning given to such term in the Separation
Agreement.

 

“Provider”
means the Party providing a Service under this Agreement.

 

“Provider
Indemnified Party” has the meaning set forth in Section 7.01.

 

2

 

“Recipient”
means the Party to whom a Service under this Agreement is being provided.

 

“Recipient
Indemnified Party” has the meaning set forth in Section 7.02.

 

“Representative(s)”
of a Person means any director, officer, employee, agent, consultant,
accountant, auditor, financing source, attorney, investment banker or other
representative of such Person.

 

“Separation
Agreement” has the meaning set forth in the Recitals of this Agreement.

 

“Separation
Date” has the meaning set forth in the Separation Agreement.

 

“Service(s)”
means, individually and collectively, the SG Services, the Cowen Services and
the Undertakings.

 

“Service
Charges” has the meaning set forth in Section 4.01(a).

 

“Service
Level Agreements” means each of the following Service Agreements between SG
or an SG Subsidiary and Cowen and/or one or more Cowen Subsidiaries:

 

(i) 
Master Services Agreement, dated as of January 1, 2004, as amended by a
First Amendment dated as of January 1, 2005 and by a Second Amendment
dated as of January [    ], 2006, between SG, acting through its New York Branch
and/or any of its other offices, subsidiaries and affiliates, and Cowen LLC
(each of which, including, in each case, the Service Level Agreements attached
as appendices to the foregoing agreements and amendments and incorporated by
reference therein, shall be terminated on or prior to the IPO Date); and

 

(ii)  the
Service Level Agreement, dated as of January 1, 2006, among SG, Cowen LLC
and SG Capital Partners L.L.C. for management of the Merchant Banking Fund from
January 1, 2006 until the effective date of the sale and transfer of
certain assets of the Merchant Banking Fund to Paul Capital Advisors, LLC, or
an affiliated entity thereof.

 

“Service
Termination Date” in respect of any Service shall mean the date specified
for such Service in the relevant Schedules, or such earlier date as provided in
this Agreement.

 

“SG
Acquired Business” has the meaning given to such term in Section 10.8.

 

“SG
Business” has the meaning given to such term in the Separation Agreement.

 

“SG
Divested Business” has the meaning given to such term in Section 10.8.

 

“SG
Services” has the meaning given to such term in Section 2.01(a).

 

“SG
Services Manager” has the meaning given to such term in Section 3.06(a).

 

“SG
Subsidiary” has the meaning given to such term in the Separation Agreement.

 

“Standard
for Services” has the meaning given to such term in Section 3.01.

 

3

 

“Subsidiary”
has the meaning given to such term in the Separation Agreement.

 

“Taxes”
has the meaning given to such term in the Separation Agreement.

 

“Third
Party” means any Person other than the Parties, the SG Subsidiaries and the
Cowen Inc. Subsidiaries.

 

“Transaction
Documents” has the meaning given to such term in the Separation Agreement.

 

“Undertakings”
means, collectively, the obligations of SG and its Subsidiaries and Cowen Inc.
and its Subsidiaries set forth in Articles II, III and V
of this Agreement.

 

ARTICLE II

SERVICES AND TERMS

 

SECTION 2.01.  Initial Services.  (a)  During the period commencing on the
date of the Cowen IPO and ending on the applicable Service Termination Date,
subject to the terms and conditions set forth in this Agreement, SG shall
provide or cause to be provided to Cowen Group each of the services listed in Schedules
A-1 to A-3 (collectively, the “SG Services”).  Except as provided in Section 10.8,
nothing in this Agreement shall require that any SG Service be provided other
than for use in, or in connection with, the Cowen Business.

 

(b)                                 During
the period commencing on the date of the Cowen IPO and ending on the applicable
Service Termination Date, subject to the terms and conditions set forth in this
Agreement, Cowen Inc. shall provide or cause to be provided to SG each of the
services listed in Schedules B-1 to B-3 (collectively, the “Cowen
Services”).  Except as provided in Section 10.08,
nothing in this Agreement shall require that any Cowen Service be provided
other than for use in, or in connection with, the SG Business

 

(c)                                  For
the avoidance of doubt, clearing services shall be provided pursuant to the
terms and subject to the conditions of the Clearing Agreement, dated as of [    ], 2006, and shall not be
considered an SG Service hereunder or be otherwise subject to in any way the
terms of this Agreement.

 

SECTION 2.02. 
Custom Modifications.

 

(a)                          The SG
Services shall include, and the Service Charges reflect charges for, such
maintenance, support, error correction, training, updates and enhancements
normally and customarily provided by SG to its Subsidiaries that receive such
services.  If Cowen Inc. requests that SG
provide a custom modification in connection with any SG Service, SG may, but
shall not be obligated to, provide such custom modification.  Cowen Inc. shall be responsible for the cost
of any such custom modification.

 

(b)                                 The
Cowen Services shall include, and the Service Charges reflect charges for, such
maintenance, support, error correction, training, updates and enhancements
normally and

 

4

 

customarily
provided by Cowen Inc. to its Subsidiaries that receive such services.  If SG requests that Cowen Inc. provide a
custom modification in connection with any Cowen Service, Cowen Inc. may, but
shall not be obligated, to provide such custom modification.  SG shall be responsible for the cost of any
such custom modification.

 

SECTION 2.03.  Provider Changes to Services.    Each Provider may make changes from time to
time in the manner of performing the Services if (i) such Provider is
making similar changes in performing analogous services for itself, (ii) such
Provider furnishes to the applicable Recipient substantially the same notice
(in content and timing) as such Provider shall furnish to its own organization
respecting such changes and (iii) such changes do not result in a material
degradation in the quality or sufficiency of the services received.  No such change shall affect the Service
Charges for the applicable Service unless the Parties otherwise agree.

 

SECTION 2.04.  Cooperation.  If (i) there is nonperformance of any
Service as a result of an event described in Section 9.03(b) or
(ii) the provision of a Service would violate applicable law, the Parties
agree to work together in good faith to arrange for an alternative means by
which the applicable Recipient may obtain, at the Recipient’s sole cost, the
Services so affected.

 

ARTICLE III

PERFORMANCE AND RECEIPT OF SERVICES; STANDARDS

 

SECTION 3.01.  Standard for Services.

 

(a)                          Except
as otherwise provided in this Agreement (including in any Schedule hereto),
from the date of the Cowen IPO until the applicable Service Termination Date,
the Provider agrees to perform all Services in a manner such that the nature,
quality, standard of care, timeliness and service levels of or at which such
Services are performed are substantially similar to the nature, quality,
standard of care, timeliness and service levels of or at which such Services
were performed by or on behalf of the Provider prior to the date of the Cowen
IPO in the ordinary course of business under the Service Level Agreements (the “Standard
for Services”).

 

(b)                                 Each
Provider shall, and shall cause its Subsidiaries to, perform its duties and
responsibilities hereunder in good faith and based on its past practices.

 

(c)                                  Each
Provider and Recipient shall exercise reasonable care in providing and
receiving the Services to (i) prevent access to the Services or
Information Systems by unauthorized Persons and (ii) not damage, disrupt
or interrupt the Services or Information Systems.

 

SECTION 3.02.  Volume and Quantity of Services.  No Provider shall be obligated to perform or
to cause to be performed any Service in a volume or quantity which materially
exceeds the volumes or quantities of analogous services performed for the
applicable Recipient in 2005 under the Service Level Agreements.  A Recipient may request a materially higher
volume or quantity of such historical volumes or quantities of a Service, which
request the applicable Provider may accept or reject in its reasonable
discretion.  If the Provider agrees to 

 

5

 

such a request,
the Parties shall cooperate and act in good faith to make any modifications to
the relevant Schedules for such Service.

 

SECTION 3.03.  Compliance with Laws.  Nothing in this Agreement shall require a
Provider to perform or cause to be performed any Service or a Recipient to receive
any Service in a manner that would constitute a violation of applicable laws.

 

SECTION 3.04.  Transitional Nature of Services.  The Parties acknowledge the transitional
nature of the Services and agree to cooperate in good faith and to use
commercially reasonable efforts to effectuate a smooth transition of the
Services from the Provider to the Recipient. Notwithstanding the foregoing, the
Parties agree that (i) it is the current intention of the Parties that the
Services described in Schedules A-1, A-3 and B-1 shall be
provided during the period commencing on the date of the Cowen IPO and ending
on December 31, 2006, and the Parties agree to enter into negotiations
following the Cowen IPO for the purpose of executing one or more mutually
acceptable agreements for the continued provision of such Services on a
stand-alone basis after December 31, 2006 (it being understood that none
of the Parties shall be obligated to use or provide Services to any other
Parties on a stand-alone basis after December 31, 2006, except as may
otherwise expressly be provided in this Agreement); and (ii) the Services
described in Schedule A-2 shall be provided during the period commencing
on the date of the Cowen IPO and ending on the earlier of (x) December 31,
2007 and (y) the date, if any, as of which Cowen LLC vacates the premises
at 1221 Avenue of the Americas, New York, New York 10020.

 

SECTION 3.05.  Use of Third Parties to Provide Services.  Each Provider may perform its obligations
through its Subsidiaries or, if such Provider is obtaining analogous services
for itself from agents, subcontractors or independent contractors, the Provider
may perform its obligations hereunder through the use of such agents,
subcontractors or independent contractors, if such Provider furnishes to the
applicable Recipient substantially the same notice (in content and timing) as
such Provider shall furnish to its own organization respecting such use of
Third Parties.  If the Provider is not
obtaining analogous services for itself from Third Parties, the Provider may
perform its obligations hereunder through the use of agents, subcontractors or
independent contractors only upon obtaining the prior written consent of the
Recipient.  Notwithstanding the foregoing,
the Provider shall not be relieved of its obligations under this Agreement by
use of such Subsidiaries, agents, subcontractors or contractors.  Delegation of performance of any Service by a
Provider in accordance with this Section 3.05 shall not affect the
Service Charges for the applicable Service.

 

SECTION 3.06.  Designation of Services Managers.

 

(a)                                  SG
Services Manager.  SG will designate
a dedicated services manager (the “SG Services Manager”) who will be
directly responsible for coordinating and managing the delivery of the SG
Services and will have authority to act on SG’s behalf with respect to the
Services.  The SG Services Manager will
work with the Cowen Services Manager to address Cowen Group’s issues and the
Parties’ relationship under this Agreement.

 

(b)                                 Cowen
Services Manager.  Cowen Inc. will
designate a dedicated services account manager (the “Cowen Services Manager”)
who will be directly responsible for coordinating and managing the delivery of
the Services by Cowen Group and will have authority to act on Cowen Group’s behalf
with respect to the Services.  The Cowen
Services Manager will work with the SG Services Manager to address SG’s issues
and the Parties’ relationship under this Agreement.

 

6

 

ARTICLE IV

BILLING; TAXES

 

SECTION 4.01.  Service Charges and Other Costs; Payments.  (a)  The Recipient of each Service
provided hereunder shall pay the Provider thereof (or its designee) an amount
with respect to each such Service (individually, a “Service Charge,” and
collectively, the “Service Charges”) determined as set forth in the
relevant Schedules.

 

(b)                         In
addition, in connection with performance of the Services and in connection with
the Undertakings, the Provider may incur certain out-of-pocket costs consistent
in nature and magnitude with past practice (the “Other Costs”), which
shall either be paid directly by the Recipient or reimbursed to the Provider by
the Recipient; provided that any Other Costs shall only be payable by
Cowen Group or SG, as the case may be, in accordance with this Section 4.01
if the Recipient receives from the Provider reasonably detailed data and other
documentation sufficient to support the calculation of amounts due to the
Provider for such Other Costs; provided further that any Other Costs already
included in the Service Charges shall not otherwise be paid or reimbursed by
the Recipient pursuant to this paragraph.

 

(c)                          Notwithstanding
anything to the contrary in this Agreement, including the Schedules, in the
event that the level of any Service is decreased or increased as provided in Section 10.08,
then the Service Charge and Other Costs associated therewith shall be reduced
or increased to reflect pro rata the decrease or increase in Services provided.

 

SECTION 4.02.  Invoices; Payment.  From and after the date of the Cowen IPO, the
Provider shall deliver an invoice to the Recipient on a monthly basis (or at
such other frequency as is consistent with the basis on which the Service
Charges are determined and, if applicable, charged to Subsidiaries of the
Provider) in arrears for the Service Charges and any Other Costs due to the
Provider under this Agreement.  The
Recipient shall pay the amount of such invoice to the Provider in U.S. dollars
within thirty (30) days of the date Recipient received such invoice, provided
that, to the extent consistent with past practice with respect to Services
rendered outside the United States, payments may be made in local currency.

 

SECTION 4.03.  Disputes.

 

(a)                                  The
Recipient shall have the right to dispute any Service Charges and Other Costs
by delivering written notice of such dispute, setting forth in reasonable
detail the basis therefor, to the Provider no later than, thirty (30) days
after Recipient’s receipt of the applicable invoice therefor.  As soon as practicable after receipt by the
Provider of any such notice, the Provider shall provide the Recipient with
reasonably detailed data and documentation sufficient to support the
calculation of any Service Charges and Other Costs that are the subject of the
dispute. If the Provider’s furnishing of such information does not promptly
resolve such dispute, the dispute shall be resolved pursuant to Section 8.01
of this Agreement.

 

(b)                                 If
the Recipient fails to pay any Service Charges or Other Costs within thirty
(30) days of the date Recipient received such invoice (excluding any amount
contested in good faith pursuant to Section 4.03(a)), the Recipient
shall be obligated to pay to the Provider, in addition 

 

7

 

to the amount due,
interest on such amount at the lesser of (i) SG’s prime rate, plus two
percent or (ii) the maximum rate of interest allowed by applicable law,
from the date the payment was due through the date of payment.

 

SECTION 4.04.  Taxes. 
(a)  Each Recipient shall pay any and all Taxes (other than taxes
imposed on or measured by the Provider’s overall net income (however
denominated), and franchise taxes imposed on the Provider (in lieu of net
income taxes)) imposed or otherwise incurred in connection with the applicable
Provider’s provision of Services, including all sales, use, excise,
value-added, services, consumption, and similar Taxes.

 

(b)                         Each of
the Parties agrees that if reasonably requested by another Party, it will
cooperate with such other Party to enable the accurate determination of such
other Party’s Liability for Taxes and assist such other Party in minimizing its
Liability for Taxes to the extent commercially reasonable and legally
permissible, in each case, in respect of Taxes, including all sales, use,
excise, value-added, services, consumption and similar Taxes, imposed or
otherwise incurred in connection with the applicable Provider’s provision of
Services.

 

SECTION 4.05.  No Right to Set-Off.  The Recipient shall pay the full amount of
Service Charges and Other Costs incurred by the Provider under this Agreement,
and shall not set-off or otherwise withhold any such amount owed to the
Provider on account of any obligation owed by the Provider to the Recipient.

 

ARTICLE V

PRIOR SERVICE LEVEL AGREEMENTS

 

SECTION 5.01.  Service Level Agreements.  (a)  As of the date of this Agreement,
SG and Cowen LLC are parties to the Service Level Agreements.  Until the closing of the Cowen IPO, SG and
Cowen LLC will continue to provide, or cause to be provided, services to each
other and their respective Subsidiaries, in accordance with the terms and
subject to the conditions set forth in the Service Level Agreements.   Nothing in this Agreement, the Separation
Agreement or any other Transaction Documents shall affect in any way any
Liabilities arising under the Service Level Agreements and relating to the
periods prior to the IPO, which Liabilities shall be discharged in accordance
with the terms and conditions of the Service Level Agreements.  Except as expressly provided in this
Agreement, in the event and to the extent that there is a conflict between the
provisions of this Agreement and the provisions of any Service Level Agreement,
the provisions of this Agreement shall control.

 

(b)                                 Upon
the closing of the Cowen IPO, SG, Cowen Inc. and Cowen LLC shall cause all
Service Level Agreements to be terminated and will provide, or cause to be
provided, Services to each other in accordance with the terms and subject to
the conditions set forth in this Agreement; provided, however,
that such termination of the Service Level Agreements shall be without
prejudice to any Liabilities under such Service Level Agreements that have
incurred or accrued thereunder prior to the date of such termination.  Except as expressly set forth in this
Agreement, the Parties shall be under no obligation following the Cowen IPO to (a) provide
any services previously provided under the Service Level Agreements that do not
constitute “Services” as defined in this Agreement and (b) otherwise
comply with the terms of the Service 

 

8

 

Level Agreements; provided
that if upon the closing of the Cowen IPO the Cowen Group is reasonably unable
to provide for themselves or obtain from Third Parties any services previously
provided by SG under the Service Level Agreements despite their commercially
reasonable efforts to do so, SG shall use commercially reasonable efforts to
continue to provide such services to the Cowen Group at the Cowen Group’s sole
cost, and such service shall be deemed an SG Service hereunder until such time
as the Parties can effect a smooth transition of such Service to the Cowen
Group.  To the extent the terms and
conditions set forth in this Agreement contradict the terms and conditions
under which services were rendered pursuant to the Service Level Agreements,
the terms of this Agreement shall govern the rendering of such services.

 

ARTICLE VI

ADDITIONAL AGREEMENTS

 

SECTION 6.01.  Consents.  (a)  The Parties acknowledge and agree
that certain software and other licenses, consents, approvals, notices,
registrations, recordings, filings and other actions (collectively, “Consents”)
may need to be obtained in connection with the Separation and the provision of
Services under this Agreement.  Except as
otherwise expressly set forth in this Agreement or the Separation Agreement,
prior to, during, and after the Separation Date, the Provider shall, and shall
cause each of its Subsidiaries to, reasonably cooperate with the Recipient to
obtain all Consents necessary to provide the Services under this
Agreement.  The Provider will be
responsible for paying any out-of-pocket costs (including payments to Third
Parties) incurred to obtain, perform or otherwise satisfy any such Consents,
and the Recipient shall reimburse the Provider for one hundred percent (100%)
of such costs.  The Provider and the
Recipient shall reasonably cooperate with each other in seeking to minimize the
costs of any such Consents.

 

(b)                                 Prior
to receiving any reimbursement for its actual out-of-pocket costs pursuant to Section 6.01(a) above,
the Provider shall provide the applicable Recipient with an invoice accompanied
by reasonably detailed data and documentation sufficient to evidence the
out-of-pocket expenses for which the Provider is seeking reimbursement.  Upon receipt of such invoice and data and
documentation, the Recipient shall, except as otherwise provided in Section 6.01(a),
pay the amount of such invoice to the Provider within 30 days of the date of
receipt of such invoice.  If Recipient in
good faith disputes the invoiced amount, then the Parties shall work together
in good faith to resolve such dispute. 
If the Parties are unable to resolve such dispute, the dispute shall be
resolved pursuant to Section 8.01.

 

SECTION 6.02.  Access.  (a)  Cowen Inc. will, and will cause its
Subsidiaries to, allow SG and its Representatives reasonable access to the
facilities of Cowen Group necessary for the performance of the SG Services for
SG to fulfill its obligations under this Agreement.

 

(b)                                 SG
will, and will cause its Subsidiaries to, allow Cowen Group and its
Representatives reasonable access to the facilities of SG and its Subsidiaries
necessary for the performance of the Cowen Services for Cowen Group to fulfill
its obligations under this Agreement.

 

9

 

ARTICLE VII

INDEMNIFICATION; LIMITATION ON LIABILITY

 

SECTION 7.01.  Limited Liability of a Provider.  Notwithstanding the provisions of Section 3.01,
and except as otherwise provided in this Article VIII, no Provider
or its Subsidiaries or any of their respective directors, officers or
employees, or any of the heirs, executors, successors or assigns of any of the
foregoing (each, a “Provider Indemnified Party”), shall have any
liability in contract, tort or otherwise to the Recipient or its Subsidiaries
or Representatives for or in connection with (i) any Services rendered or
to be rendered by any Provider Indemnified Party pursuant to this Agreement, (ii) the
transactions contemplated by this Agreement, (iii) any Provider
Indemnified Party’s actions or inactions in connection with any such Services
or transactions, or (iv) any error of judgment or any mistake of fact or
law or for anything that the Provider or any of its Subsidiaries does or
refrains from doing in good faith hereunder; provided, however,
that such limitation on liability shall not extend to or otherwise limit any
Liabilities that have resulted from (a) such Provider Indemnified Party’s
gross negligence or willful misconduct, (b) a Provider’s breach of this
Agreement or (c) the improper use or disclosure of Information in
connection with the transactions contemplated by this Agreement or such
Provider’s provision of the Services.

 

SECTION 7.02.  Indemnification by Each Provider.  Each Provider shall indemnify, defend and
hold harmless each relevant Recipient and each of its Subsidiaries and each of
their respective directors, officers and employees, and each of the heirs,
executors, successors and assigns of any of the foregoing (each a “Recipient
Indemnified Party”), from and against any and all Liabilities of the
Recipient Indemnified Parties relating to, arising out of, or resulting from (a) the
gross negligence or willful misconduct of a Provider in connection with the
transactions contemplated by this Agreement or such Provider’s provision of the
Services, (b) a Provider’s breach of this Agreement, or (c) Provider’s
breach of Section 5.06 of the Separation Agreement or the improper
use of Information, in each case in connection with the transactions
contemplated by this Agreement or such Provider’s provision of the Services; provided,
that there shall be no amount payable by a Provider pursuant to its
indemnification obligations hereunder unless and until the cumulative amount of
all Liabilities determined to have been incurred by the Recipient Indemnified
Party that otherwise would be indemnifiable pursuant to this Section 7.02
exceeds $150,000, following which only any amount of such Liabilities in excess
of $150,000 shall become due and payable.

 

SECTION 7.03.  Indemnification by Each Recipient.  Each Recipient shall indemnify, defend and
hold harmless each relevant Provider Indemnified Party from and against any and
all Liabilities of the Provider Indemnified Parties relating to, arising out
of, or resulting from (a) the gross negligence or willful misconduct of a
Recipient in connection with the transactions contemplated by this Agreement or
such Recipient’s use of the Services, (b) a Recipient’s breach of this
Agreement, or (c) Recipient’s breach of Sections 5.06 or 5.07
of the Separation Agreement or the improper use or disclosure of Information,
in each case in connection with the transactions contemplated by this Agreement
or such Recipient’s receipt of the Services; provided, that there shall
be no amount payable by a Recipient pursuant to its indemnification obligations
hereunder unless and until the cumulative amount of all Liabilities determined
to have been incurred by the Provider Indemnified Party that otherwise would be
indemnifiable 

 

10

 

pursuant to this Section 7.03 exceeds $150,000, following
which only any amount of such Liabilities in excess of $150,000 shall become
due and payable.

 

SECTION 7.04.  Indemnification Procedures.  The matters set forth in Sections 3.04,
3.05 and 4.01 of the Indemnification Agreement shall be deemed
incorporated into, and made a part of, this Article VII.

 

SECTION 7.05.  Limitation on Liability.  Notwithstanding any other provision contained
in this Agreement, neither SG on the one hand, nor Cowen Group, on the other
hand, shall be liable to the other for any exemplary or punitive losses,
damages or expenses of the other arising from any claim relating to breach of
this Agreement or otherwise relating to any of the Services or Undertakings
provided hereunder.  For clarification
purposes only, the Parties hereto agree that the limitation on liability
contained in this Section 7.05 shall not apply to (a) damages
awarded to a Third Party pursuant to a Third Party claim for which a Provider
is required to indemnify, defend and hold harmless any Recipient Indemnified
Party under Section 7.02 and (b) damages awarded to a Third
Party pursuant to a Third Party claim for which a Recipient is required to
indemnify, defend and hold harmless any Provider Indemnified Party under Section 7.03.

 

SECTION 7.06.  Liability for Payment Obligations.  Nothing in this Article VII shall
be deemed to eliminate or limit, in any respect, SG or Cowen Group’s express
obligation in this Agreement to pay or reimburse, as applicable, for (i) Service
Charges, (ii) Other Costs, (iii) amounts with respect to any custom
modification provided pursuant to Sections 2.02, (iv) amounts
payable or reimbursable pursuant to Section 4.04 (Taxes), (v) amounts
payable or reimbursable pursuant to Section 10.02 (Regulatory
Approval and Compliance) and (vii) amounts payable or reimbursable
pursuant to Section 10.08 (Assignment; No Third Party
Beneficiaries), nor to eliminate or limit, in any respect, SG or Cowen Group’s
express obligations to pay or reimburse amounts pursuant to the Separation
Agreement.

 

ARTICLE VIII

DISPUTE RESOLUTION

 

SECTION 8.01.  Dispute Resolution.  The Parties shall cooperate with each other in
good faith to resolve all disputes, controversies or claims between them
arising out of, or relating to, this Agreement. 
Any dispute, controversy or claim that cannot be resolved by the contact
parties specified on the relevant Schedule shall be referred to the Cowen
Services Manager and the SG Services Manager for review. If the Cowen Services
Manager and the SG Services Manager cannot resolve the dispute, then the
dispute shall be referred to the SG Americas Chief Executive Officer and Cowen
Chief Executive Officer. Any dispute, controversy or claim arising out of, or
relating to, this Agreement that can not be resolved through discussions
between the SG Americas Chief Executive Officer and Cowen Chief Executive
Officer shall be resolved in accordance with the requirements of Article VI
of the Separation Agreement.

 

11

 

ARTICLE IX

TERMINATION

 

SECTION 9.01.  Termination Rights; Post-Termination
Transition.  (a)  The term of
this Agreement shall commence on the date hereof and expire on the first date
on which neither SG or its Subsidiaries nor Cowen Group has any further
obligations to provide a Service or perform an Undertaking.  This Agreement shall terminate with respect
to each Service and Undertaking on the applicable Service Termination Date or
other termination date specified in this Agreement or the Schedules
hereto.  In addition:  (i) a Recipient may from time to time
terminate any Service, in whole and not in part, upon giving at least
forty-five (45) days’ (or such shorter period of time as is mutually agreed
upon in writing by the Parties) prior written notice to the Provider specifying
which Service is being so terminated and (ii) any Party (the “Non-Breaching
Party”) may terminate this Agreement with respect to any Service, in whole
but not in part, at any time upon prior written notice by the Non-Breaching
Party to the other Party (the “Breaching Party”) if the Breaching Party
has failed to perform any of its material obligations under this Agreement
relating to such Service, and such failure shall have continued without cure
for a period of fifteen (15) days after receipt by the Breaching Party of a
written notice of such failure from the Non-Breaching Party seeking to
terminate such Service.

 

(b)                                 In
addition to and not in limitation of the rights and obligations set forth in Articles
II, III and V, upon the request of the Recipient of a
Service, the Provider of such Service will, during the term of this Agreement
during which such Provider is providing such Service to the Recipient,
cooperate with the Recipient and use its good faith, commercially reasonable
efforts to assist the transition of such Service to the Recipient (or
Subsidiary of the Recipient or vendor designated by the Recipient) by the
Service Termination Date for such Service, except where, in the case of the
Services described on Schedules A-1, A-2 and B-1, the
Parties have reached a mutually acceptable agreement for the continued
provision of such Services by SG to the Cowen Group on a stand-alone basis
after December 31, 2006.

 

SECTION 9.02.  Effect of Termination.  Upon termination or expiration of any Service
or Undertaking pursuant to this Agreement, the relevant Provider will have no
further obligation to provide the terminated Service or expired Undertaking,
and the relevant Recipient will have no obligation to pay any future Service
Charges or Other Costs relating to any such Service or Undertaking (other than
for or in respect of Services or Undertakings provided in accordance with the
terms of this Agreement and received by such Recipient prior to such
termination).

 

SECTION 9.03.  Survival.  (a) Article IV (Billing;
Taxes), Section 6.01 (Consents), Section 6.02 (Access),
Article VII (Indemnification; Limitation on Liability), Article VIII
(Dispute Resolution), Section 9.02 (Effect of Termination), Section 9.03
(Survival), and Article X (General Provisions) shall survive the
expiration or other termination of this Agreement and remain in full force and
effect.

 

(b)                                 Force
Majeure.  No Party hereto shall be
deemed in default of this Agreement to the extent that any delay or failure in
the performance of its obligations (other than a payment obligation) under this
Agreement results from any cause beyond its reasonable control and without its
fault or negligence, such as acts of God, acts of Governmental Authority, embargoes, 

 

12

 

epidemics, war,
riots, insurrections, acts of terrorism, fires, explosions, earthquakes,
floods, unusually severe weather conditions, labor problems or unavailability
of parts, or, in the case of computer systems, any failure in electrical or air
conditioning equipment.  Each Party, upon
learning of the occurrence of any such force majeure event that would reasonably
be expected to result in a delay or failure in the performance of its
obligations (other than a payment obligation) under this Agreement, will
promptly notify the other Party or Parties hereto to which such obligations are
owed, either in writing or orally; provided that any such oral
notification shall be confirmed in writing as soon as practicable after being
delivered.  In the event of any such
excused delay, the time for performance shall be extended for a period equal to
the time lost by reason of the delay.  If
(x) Services are suspended as a result of such excused delay, (y) the
suspension has a material and negative impact on Recipient’s business
operations and (z) Provider cannot readily reinstate the relevant Services,
Provider will use commercially reasonable efforts to assist Recipient in
securing alternative services to minimize such negative impact on Recipient.

 

ARTICLE X

 

GENERAL PROVISIONS

 

SECTION 10.01.  Independent Contractors.  In providing Services hereunder, the Provider
shall act solely as independent contractor and nothing in this Agreement shall
constitute or be construed to be or create a partnership, joint venture, or
principal/agent relationship between the Provider, on the one hand, and the
Recipient, on the other.  All Persons
employed by the Provider in the performance of its obligations under this
Agreement shall be the sole responsibility of the Provider.

 

SECTION 10.02.  Regulatory Approval and Compliance.  Each of the Parties shall be responsible for
its own compliance with any and all Laws applicable to its performance under
this Agreement; provided, however, that each of SG and Cowen Inc.
shall, subject to reimbursement of out-of-pocket expenses by the requesting
Party, cooperate and provide one another with all reasonably requested
assistance (including, without limitation, the execution of documents and the
provision of relevant information) required by the requesting Party to ensure
compliance with all applicable laws in connection with any regulatory action, requirement,
inquiry or examination related to this Agreement or the Services.

 

SECTION 10.03.  Confidential Information.  Cowen Inc. agrees to maintain and safeguard
all Information concerning SG (or its business) and the SG Subsidiaries (or
their respective businesses) pursuant to Sections 5.06 and 5.07 of the
Separation Agreement and SG agrees to maintain and safeguard all Information
concerning Cowen Inc. (or its business) and the Cowen Inc. Subsidiaries (or
their respective businesses) pursuant to Sections 5.06 and 5.07 of the
Separation Agreement.  Each Party agrees
that Sections 5.06 and 5.07 of the Separation Agreement are hereby incorporated
by reference into, and a made a part of, this Agreement.

 

13

 

SECTION 10.04.  Counterparts; Entire Agreement; Corporate
Power; Facsimile Signatures.

 

(a)                                  Counterparts.  This Agreement may be executed in two or more
counterparts, each of which when executed shall be deemed to be an original but
all of which taken together shall constitute one and the same agreement.

 

(b)                         Entire
Agreement.  This Agreement, the
Separation Agreement, the other Transaction Documents and the exhibits,
schedules and annexes hereto and thereto contain the entire agreement between
the Parties with respect to the subject matter hereof and supersede all
previous agreements, negotiations, discussions, writings, understandings,
commitments and conversations with respect to such subject matter, and there
are no agreements or understandings between the Parties other than those set
forth or referred to herein or therein. 
Except as expressly provided in this Agreement, in the event and to the
extent that there is a conflict between the provisions of this Agreement and
the provisions of the Separation Agreement or any other Transaction Document,
the provisions of this Agreement shall control.

 

(c)                          Corporate
Power.  SG represents on behalf of
itself and, to the extent applicable, each SG Subsidiary, and Cowen Inc.
represents on behalf of itself and, to the extent applicable, each Cowen Inc.
Subsidiary, as follows:

 

(i)                                     each
such Person has the requisite corporate or other power and authority and has
taken all corporate or other action necessary in order to execute, deliver and
perform this Agreement and to consummate the transactions contemplated hereby;
and

 

(ii)                                  this
Agreement has been duly executed and delivered by it and constitutes a valid
and binding agreement of it enforceable in accordance with the terms thereof.

 

(d)                                 Facsimile
Signatures.  Each Party acknowledges
that it and the other Parties may execute this Agreement by facsimile, stamp or
mechanical signature.  Each Party
expressly adopts and confirms each such facsimile, stamp or mechanical
signature made in its respective name as if it were a manual signature and
agrees that it shall not assert that any such signature is not adequate to bind
such Party to the same extent as if it were signed manually.

 

SECTION 10.05.  Governing Law.  This Agreement shall be governed by and
construed and interpreted in accordance with the laws of the State of New York
irrespective of the choice of laws principles of the State of New York, as to
all matters, including matters of validity, construction, effect,
enforceability, performance and remedies.

 

SECTION 10.06.  Notices.  All notices or other communications under
this Agreement or any Transaction Document (except as otherwise provided
therein) must be in writing and shall be deemed to be duly given: (a) when
delivered in person; (b) upon transmission via confirmed facsimile
transmission, provided that such transmission is followed by delivery of a
physical copy thereof in person, via U.S. first class mail, or via a private
express mail courier; or (c) two days after deposit with a private express
mail courier, in any such case addressed as follows:

 

14

 

If to SG:

 

Société
Générale

1221 Avenue of
the Americas

New York, New York 10020

Attn:  General Counsel, SG Americas

Facsimile:  (212) 278-7432

 

With a copy
to:

 

Mayer, Brown,
Rowe & Maw LLP

1675 Broadway

New York, New York  10019

Attn:  James B. Carlson

Facsimile:  (212) 262-1910

 

If to Cowen
Group:

 

Cowen Group, Inc.

1221 Avenue of the Americas

New York, New York 10020

Attn:  General Counsel

Facsimile:  (646) 562-1861

 

With a copy
to:

 

Skadden, Arps,
Slate, Meagher & Flom LLP

Four Times Square

New York, NY  10036

Attn:       Lou R. Kling

Thomas W. Greenberg

Facsimile:  (212) 735-2000

 

Any Party may, by notice
to the other Parties, change the address to which such notices are to be given.

 

SECTION 10.07.  Severability.  If any provision of this Agreement or any
Transaction Document or the application thereof to any Person or circumstance
is determined by a court of competent jurisdiction to be invalid, void or
unenforceable, the remaining provisions hereof, or the application of such
provision to Persons or circumstances or in jurisdictions other than those as
to which it has been held invalid or unenforceable, shall remain in full force
and effect and shall in no way be affected, impaired or invalidated thereby, so
long as the economic or legal substance of the transactions contemplated hereby
or thereby, as the case may be, is not affected in any manner adverse to any
Party.  Upon such determination, the
Parties shall negotiate in good faith in an effort to agree upon a suitable and
equitable provision to effect the original intent of the Parties.

 

15

 

SECTION 10.08.  Assignability; No Third-Party
Beneficiaries.

 

(a)                          Subject
to the other provisions of this Section 10.08, this Agreement shall
not be assigned by any Party without the prior written consent of the other
Parties.

 

(b)                                 In
the event Cowen Group sells a Cowen Subsidiary or all or part of the Cowen
Business (in each case, a “Cowen Divested Unit”) to a Third Party, SG
shall not remain obligated to continue to provide SG Services to such Cowen
Divested Unit (or such Third Party acquirer) pursuant to the terms of this
Agreement, unless otherwise agreed upon by the Parties.  In the event SG sells a SG Subsidiary or all
or part of the SG Business (in each case, a “SG Divested Unit”) to a
Third Party, Cowen Group shall not remain obligated to continue to provide
Cowen Services to such SG Divested Unit (or such Third Party acquirer) pursuant
to the terms of this Agreement, unless otherwise agreed upon by the Parties.

 

(c)                                  In
the event Cowen Group acquires a business or portion thereof by merger, stock
purchase, asset purchase or other means (a “Cowen Acquired Business”),
then SG and the SG Subsidiaries shall not be obligated to provide the SG
Services to such Cowen Acquired Business pursuant to the terms of this
Agreement, unless otherwise agreed upon by the Parties.  In the event SG or any SG Subsidiary acquires
a business or portion thereof by merger, stock purchase, asset purchase or
other means (an “SG Acquired Business”), then Cowen Inc. and the Cowen
Inc. Subsidiaries shall not be obligated to provide the Cowen Services to such
SG Acquired Business pursuant to the terms of this Agreement, unless otherwise
agreed upon by the Parties.

 

(d)                                         Except
as provided in Article VII with respect to Provider Indemnified
Parties and Recipient Indemnified Parties, this Agreement is for the sole
benefit of the Parties to this Agreement and their permitted successors and
assigns and nothing in this Agreement, express or implied, is intended to or
shall confer upon any other Person any legal or equitable right, benefit or
remedy of any nature whatsoever under or by reason of this Agreement.

 

SECTION 10.09.  Subsidiaries.  SG shall cause to be performed, and hereby
guarantees the performance of, all actions, agreements and obligations set
forth herein to be performed by any SG Subsidiary and Cowen Inc. shall cause to
be performed, and hereby guarantees the performance of, all actions, agreements
and obligations set forth herein to be performed by any Cowen Inc. Subsidiary.

 

SECTION 10.10.  Waivers.  The observance of any term of this Agreement
may be waived (either generally or in a particular instance and either
retroactively or prospectively) by the Party entitled to enforce such term, but
such waiver shall be effective only if it is in writing and signed by the Party
against whom the existence of such waiver is asserted.  Unless otherwise expressly provided in this
Agreement, no delay or omission on the part of any Party in exercising any
right or privilege under this Agreement shall operate as a waiver thereof, nor
shall any waiver on the part of any Party of any right or privilege under this
Agreement operate as a waiver of any other right or privilege under this
Agreement nor shall any single or partial exercise of any right or privilege
preclude any other or further exercise thereof or the exercise of any other
right or privilege under this Agreement. 
No failure by any Party to take any action or assert any right or
privilege hereunder shall be deemed to be a waiver of such right or privilege 

 

16

 

in the event of
the continuation or repetition of the circumstances giving rise to such right
unless expressly waived in writing by the Party against whom the existence of
such waiver is asserted.

 

SECTION 10.11.  Amendments.  No provisions of this Agreement shall be
deemed amended, supplemented or modified unless such amendment, supplement or
modification is in writing and signed by an authorized representative of each
of the Parties hereto.

 

SECTION 10.12.  Interpretation.  Words in the singular in this Agreement shall
be deemed to include the plural and vice versa and words of one gender shall be
deemed to include the other genders as the context requires.  The terms “hereof,” “herein,” and “herewith”
and words of similar import shall, unless otherwise stated, be construed to
refer to this Agreement as a whole (including all of the Schedules and Exhibits
hereto) and not to any particular provision of this Agreement.  Article, Section, Exhibit and Schedule references
are to the Articles, Sections, Exhibits, and Schedules to this Agreement unless
otherwise specified.  Unless otherwise
stated, all references to any agreement shall be deemed to include the
exhibits, schedules and annexes to such agreement.  The word “including” and words of similar
import when used in this Agreement shall mean “including, without limitation,”
unless the context otherwise requires or unless otherwise specified.  The word “or” shall not be exclusive.  Unless otherwise specified in a particular
case, the word “days” refers to calendar days. 
References herein to this Agreement or any Transaction Document shall be
deemed to refer to this Agreement or such Transaction Document as of the
Effective Time and as it may be amended thereafter, unless otherwise
specified.  References to the
performance, discharge or fulfillment of any Liability in accordance with its
terms shall have meaning only to the extent such Liability has terms; if the
Liability does not have terms, the reference shall mean performance, discharge
or fulfillment of such Liability.

 

SECTION 10.13.  Mutual Drafting.  This Agreement shall be deemed to be the
joint work product of the Parties and any rule of construction that a
document shall be interpreted or construed against a drafter of such document
shall not be applicable.

 

* * * * *

 

17

 

IN WITNESS
WHEREOF, the Parties have caused this Agreement to be executed by their
respective duly authorized officers as of the date first written above.

 

 

	
   

  	
  SOCIÉTÉ GÉNÉRALE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SG AMERICAS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SG AMERICAS SECURITIES HOLDINGS,

  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  COWEN AND COMPANY, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  COWEN GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

F-1Exhibit 10.12

ESCROW AGREEMENT

This ESCROW AGREEMENT (this “Agreement”), dated
as of
[                    ],
2006, is by and among SG AMERICAS SECURITIES HOLDINGS, INC. a Delaware
corporation (“SGASH”), COWEN GROUP, INC., a Delaware corporation (“Cowen
Inc.”), COWEN & CO., LLC, a Delaware limited liability company (“Cowen
LLC”) and [JPMORGAN CHASE BANK, N.A., a national banking association] (the “Escrow
Agent”).  Capitalized terms which are used but not otherwise defined
in this Agreement have the meaning assigned to such terms in the Separation
Agreement (as defined below).

WHEREAS, SGASH, Cowen Inc. and Cowen LLC are parties
to that certain Separation Agreement, dated as of
                    ,
2006 (the “Separation Agreement”), pursuant to which the Cowen Business
is separated from the SGASH Business (the “Separation”);

WHEREAS, SGASH, Cowen Inc. and Cowen LLC are also
parties to that certain Indemnification Agreement, dated as of
                            ,
2006 (the “Indemnification Agreement”) pursuant to which SGASH has
agreed to indemnify Cowen LLC against, among other things, any liability Cowen
may incur in respect of certain specified contingent liabilities identified in Schedule
2.02(b) to the Separation Agreement (the “Contingent Liabilities”)
to the extent such liabilities are not paid out of the Escrow Fund (as defined
below);

WHEREAS, in connection with the Separation, Cowen LLC
will deliver to the Escrow Agent
$                                
in cash, which amount equals the amount of the Closing Litigation Reserve, as
such term is defined in the Separation Agreement (the “Initial Escrow Amount”);

WHEREAS, the Initial Escrow Amount shall be held
pursuant to the terms and conditions of this Agreement;

WHEREAS, the funds held by Escrow Agent from time to
time pursuant to this Agreement, together with all income accrued thereon which
has not been distributed pursuant to this Agreement, are collectively referred
to herein as the “Escrow Fund.”

NOW, THEREFORE, in consideration of the mutual undertakings
contained herein, the parties hereto agree as follows:

1.                                      
Appointment of
Escrow Agent; Creation of Escrow Fund.  SGASH, Cowen Inc. and Cowen LLC hereby appoint
the Escrow Agent to serve as escrow agent under the terms of this
Agreement.  Cowen LLC will deliver the Initial Escrow Amount to the Escrow
Agent to establish the Escrow Fund upon execution of this Agreement.  The
Escrow Agent hereby agrees to hold and dispose of the Escrow Fund, and to act as
escrow agent, in accordance with all the terms, conditions and provisions of
this Agreement.  The Escrow Fund shall be held as a trust fund and shall
not be subject to any lien, attachment, trustee process or any other judicial
process of any creditor of any party hereto.  During the term of this
Escrow Agreement, the Escrow Fund shall be invested and reinvested by the
Escrow Agent in the investment indicated on Schedule I hereto or such
other investments as shall be directed jointly in writing by SGASH and Cowen
Inc. and as shall be reasonably acceptable to the Escrow Agent.  In the
absence of written instruction from the parties, hereto regarding an
investment, the Escrow Agent will invest the funds in a JPMorgan Money Market
Account.

1

2.                                      
Escrow Account.  During the term of this
Agreement, the Escrow Agent shall hold the Escrow Fund in a segregated account
maintained by the Escrow Agent (the “Escrow Account”).  The Escrow
Agent shall not dispose of the Escrow Fund except as expressly set forth in
this Agreement or as otherwise instructed in a writing signed by SGASH.

3.                                      
Adjustments;
Disbursements from the Escrow Fund.  Except as provided in this Section 3,
the Escrow Agent shall only distribute the Escrow Fund in accordance with
the  written instructions of the officers of SGASH set forth on Schedule
III hereto, which may be amended by SGASH from time to time in respect of
SG Persons.

(a)                         
Adjustments to
Litigation Reserve and Escrow Fund.  SGASH shall periodically review and, if
appropriate, after consultation with Cowen Inc. and Cowen Inc.’s outside
auditors, adjust the Litigation Reserve Amount and Litigation Reserve Sub-Amounts
(each as defined below) if the adjustment in the reserves for the Contingent
Liabilities to which such Litigation Reserve Amount and Litigation Reserve
Sub-Amount is required in accordance with generally accepted accounting
principles.

(b)                        
Litigation Reserve
Amount and Litigation Reserve Sub-Amounts, Defined.

(i)                                    
As used in this
Agreement, “Litigation Reserve Amount” shall mean the Closing Litigation
Reserve, as adjusted from time to time pursuant to Section 3(a) of this
Agreement.

(ii)                                 
As used in this
Agreement, “Litigation Reserve Sub-Amounts” shall mean the specified
reserve amounts allocated by SG to each of the matters set forth on Schedule
2.02(b) to the Separation Agreement, which specified amounts shall in the
aggregate equal the Closing Litigation Reserve, as adjusted from time to time
pursuant to Section 3(a) of this Agreement.

(c)                         
Payment of
Contingent Liabilities from Escrow Fund.  If at any time prior to the Termination Date
(as hereinafter defined), SGASH reasonably determines in good faith, in
accordance with the Indemnification Agreement and Separation Agreement, that a
Contingent Liability is to be paid or if there is any judgment or settlement
requiring payment that has not been made by SG or SGASH, SGASH shall provide
prompt written notice of such payment to the Escrow Agent and Cowen LLC (a “Notice
of Claim”).  Promptly following its receipt of any Notice of Claim,

(i)                                    
the Escrow Agent
shall withdraw from the Escrow Fund and pay to the Person(s) designated as
payee(s) in the Notice of Claim by the due date specified in the Notice of
Claim an amount equal to the lesser of (i) the aggregate amount of the claims
asserted in the Notice of Claim or (ii) the balance in the Escrow Fund on the
date of payment.

(ii)                                 
if the Escrow Fund as
of the date the Escrow Agent received the Notice of Claim is less than the
aggregate amount of the claims asserted in the Notice of Claim, SGASH or an
SGASH Subsidiary designated by SGASH shall pay the amount of the shortfall to
the payee(s) designated in the Notice of Claim by the due date specified in the
Notice of Claim.

2

(iii)                              
if immediately after
making the payment(s) described in the Notice of Claim, the Escrow Fund is
greater than the Litigation Reserve Amount, as most recently determined by SGASH
pursuant to Section 3(a), SGASH shall instruct the Escrow Agent to, and
the Escrow Agent shall, promptly distribute the amount of the difference to
SGASH or the SGASH Subsidiary designated by SGASH.

(d)                        
Adjustment
Disbursement. 
If at any time prior to the Termination Date, SGASH, in accordance with Section
3(a), decreases a Litigation Reserve Sub-Amount, SGASH may instruct the
Escrow Agent to, and the Escrow Agent shall, distribute to SGASH or the SGASH
Subsidiary designated by SGASH, an amount equal to the amount of such decrease.

(e)                         
Statements.  Within ten (10) Business Days
following the last day of each calendar month (each a “Month End”)
during the term of this Agreement, the Escrow Agent shall provide to SGASH and
Cowen LLC, at no additional cost, a statement reflecting the dollar amount of
the Escrow Fund, including all income accrued thereon which has not been
distributed, as at the applicable Month End.  As used herein, “Business
Day” means any day that is not a Saturday, a Sunday or a day on which the
Escrow Agent is required or permitted to be closed for business.

(f)                           
Return of Interest
Earned on Escrow Fund.  Within ten (10) Business Days following the last day of each
calendar quarter (each a “Quarter End”) during the term of this
Agreement, the Escrow Agent shall, without further instructions from SGASH and
in the manner contemplated by Section 3(h) below, distribute to SGASH
any interest earned on the Escrow Fund and not yet distributed to SGASH as of
such Quarter End.

(g)                        
Release of Escrow
Fund.  On
the Termination Date, the Escrow Agent shall distribute to SGASH an amount
equal to the balance of the Escrow Fund.  As used herein, “Termination
Date” means the date on which the Escrow Agent and Cowen LLC receive notice
from SGASH in accordance with Section 7 that SGASH has determined, after
consultation with Cowen Inc. and Cowen Inc.’s outside auditors, that the
Litigation Reserve Amount may be adjusted to Zero U.S. Dollars ($0.00) pursuant
to Section 3(a).

(h)                        
Method of
Distributions. 
Any amount distributed to SGASH or Cowen LLC pursuant to this Agreement shall
be paid in U.S. Dollars.  Unless otherwise instructed by the party to whom
funds are to be released, the Escrow Agent shall liquidate assets in the Escrow
Fund to the extent that sufficient cash is not available in the Escrow Fund at
the time any such distribution is to be made and shall pay the proceeds thereof
to SGASH or Cowen LLC, as applicable, in accordance with this Section 3(h). 
Unless otherwise instructed by the party to whom funds are to be released, any
distribution from the Escrow Fund to SGASH or Cowen LLC shall be paid by wire
transfer of immediately available funds to the account and in accordance with
the wire transfer instructions designated for such party on Schedule III
attached hereto or to such other account as SGASH or Cowen LLC, as applicable,
may designate in writing.

(i)                            
Call-Back Schedule.  In the event fund transfer
instructions are given, whether in writing, by facsimile or otherwise, the
Escrow Agent is authorized to seek confirmation of such instructions by
telephone call-back to the person or persons designated on Schedule III
attached hereto, and the Escrow Agent may rely upon the confirmations of anyone
purporting to be the person or persons so designated.  The persons and
telephone numbers for call-backs and

3

signatures
for the fund transfer instructions set forth for a party on Schedule III
attached hereto may be changed only in writing signed by such party actually
received and acknowledged by the Escrow Agent.  The Escrow Agent and the
beneficiary’s bank in any funds transfer may rely solely upon any account
numbers or similar identifying numbers provided by SGASH or Cowen LLC to
identify (i) the beneficiary, (ii) the beneficiary’s bank or (iii) an
intermediary bank.  All fund transfer instructions must include the
signature of the person(s) listed on Schedule III attached hereto, as
amended from time to time in accordance with this Agreement.  The parties
to this Agreement acknowledge that these security procedures are commercially
reasonable.

4.                                      
Liability of
Escrow Agent. 
The Escrow Agent’s duties and obligations under this Agreement shall be
determined solely by the express provisions of this Agreement and the Escrow
Agent shall not have any duties or responsibilities except as expressly
provided in this Agreement.  The Escrow Agent shall not be obligated to
recognize, and shall not have any liability or responsibility arising under,
any agreement to which the Escrow Agent is not a party, even though reference
thereto may be made herein.  With respect to the Escrow Agent’s
responsibility, SGASH, Cowen Inc. and Cowen LLC further agree that:

(a)                         
The Escrow Agent
shall not be liable to anyone whomsoever by reason of any error of judgment or
for any act done or step taken or omitted by the Escrow Agent, or for any
mistake of fact or law or anything which the Escrow Agent may do or refrain
from doing in connection herewith, except to the extent caused by or arising
out of the Escrow Agent’s gross negligence or willful misconduct.  The
Escrow Agent may consult with counsel and accountants of its own choice and
execute any of its powers and perform any of its duties hereunder directly or
through agents or attorneys (and shall be liable only for the careful selection
of any such agent or attorney) and may consult with counsel, accountants and
other skilled persons to be selected and retained by it and shall have full and
complete authorization and protection for any action taken or suffered by the
Escrow Agent hereunder in good faith and in accordance with the opinion of such
counsel or accountants.  SGASH, Cowen Inc. and Cowen LLC shall jointly and
severally indemnify and hold the Escrow Agent and its directors, agents and
employees harmless from and against any and all liability and expense which may
arise out of any action taken or omitted by the Escrow Agent in accordance with
this Agreement, except to the extent that a court of competent jurisdiction
determines that the Escrow Agent’s gross negligence or willful misconduct was
the primary cause of any loss.  This Section 4(a) shall survive
notwithstanding any termination of this Agreement or the Escrow Agent’s
resignation.  Anything in this Escrow Agreement to the contrary
notwithstanding, in no event shall the Escrow Agent be liable for special,
indirect or consequential loss or damage of any kind whatsoever (including but
not limited to lost profits), even if the Escrow Agent has been advised of the
likelihood of such loss or damage and regardless of the form of action.

(b)                        
SGASH and Cowen LLC
may examine the records pertaining to the Escrow Fund at any time during normal
business hours at the Escrow Agent’s office upon twenty-four (24) hours’ prior
notice.

(c)                         
The provisions of
this Agreement are solely for the benefit of the parties hereto, their
successors, permitted assigns and heirs and to no other person whomsoever.

4

(d)                        
No succession to, or
assignment of, the interest of SGASH, Cowen Inc. or Cowen LLC shall be binding
upon the Escrow Agent unless and until written evidence of such succession or
assignment, in form reasonably satisfactory to the Escrow Agent, has been
delivered to and acknowledged by the Escrow Agent.

(e)                         
The Escrow Agent may
rely upon and shall not be liable for acting or refraining from acting upon any
written notices, requests or instructions signed by the proper parties or
bearing a signature or signatures believed by the Escrow Agent in good faith to
be the genuine signatures of the proper parties and shall be under no duty to
inquire into or investigate the validity, accuracy or content of any such
document.  In the event that the Escrow Agent shall be uncertain as to its
duties or rights hereunder or shall receive instructions, claims or demands
from any party hereto which, in its reasonable opinion, conflict with any of
the provisions of this Agreement, it shall notify SGASH and Cowen LLC of such
fact and request that they direct the Escrow Agent in writing as to the
appropriate action.

(f)                           
In case any property
held by the Escrow Agent shall be attached, garnished or levied upon under a
court order, or the delivery thereof shall be stayed or enjoined by a court
order, or any writ, order, judgment or decree shall be made or entered by any
court, or any order, judgment or decree shall be made or entered by any court
affecting the property deposited under this Agreement or any part thereof, the
Escrow Agent is hereby expressly authorized to obey and comply with all writs,
orders, judgments or decrees so entered or issued, whether with or without
jurisdiction, and in case the Escrow Agent obeys or complies with any such
writ, order, judgment or decree, the Escrow Agent shall not be liable to SGASH
and Cowen LLC or to any other person by reason of such compliance in connection
with such litigation.  SGASH agrees to pay to the Escrow Agent on demand
its reasonable and documented costs, attorneys’ fees, charges, disbursements
and expenses in connection with such litigation.

(g)                        
The Escrow Agent
reserves the right to resign at any time by giving written notice of
resignation to SGASH, Cowen Inc. and Cowen LLC specifying the effective date
thereof, provided that the Escrow Agent shall continue to perform all of
its duties and obligations set forth hereunder until the distribution of the
property held hereunder to a successor escrow agent.  Within sixty (60)
days after receiving such notice, SGASH and Cowen LLC jointly shall appoint a
successor escrow agent to which the Escrow Agent may distribute the property
then held hereunder.  If a successor escrow agent has not been appointed
and has not accepted such appointment by the end of such thirty-day period, the
Escrow Agent may apply to a court of competent jurisdiction for the appointment
of a successor escrow agent, and SGASH shall bear all reasonable and documented
costs, expenses and attorney’s fees which are incurred by the Escrow Agent in
connection with such proceeding.

5.                                      
Compensation of
the Escrow Agent. 
SGASH agrees to pay the Escrow Agent upon execution of this Agreement and from
time to time thereafter reasonable compensation for services to be rendered by
the Escrow Agent hereunder, which unless otherwise agreed in writing by SGASH
and the Escrow Agent shall be as set forth on Schedule II attached
hereto, and further agrees to pay or reimburse the Escrow Agent upon request
for all reasonable and documented expenses, disbursements and advances,
including reasonable attorney’s fees and expenses, incurred or made by the
Escrow Agent in connection with the performance or any necessary modification
or the termination of this Agreement.

5

6.                                      
Tax Reporting.  SGASH, Cowen Inc. and Cowen LLC
agree to provide the Escrow Agent upon execution of this Agreement with
certified tax identification numbers for each of them by furnishing appropriate
Forms W-9 (or Forms W-8, in the case of non-U.S. persons) and other forms and
documents that the Escrow Agent may reasonably request (collectively, “Tax
Reporting Documentation”).  The parties hereto understand that if such
Tax Reporting Documentation is not so certified to the Escrow Agent, the Escrow
Agent may be required by the Internal Revenue Code, as it may be amended from
time to time, to withhold a portion of any interest or other income earned on
the investment of monies or other property held by the Escrow Agent pursuant to
this Agreement.  The Parties hereby agree that notwithstanding the terms
of the Separation Agreement or any other Ancillary Agreement, solely for United
States federal income tax purposes (a) the Escrow Fund shall be treated as
funded by a distribution of the Initial Escrow Amount from Cowen LLC to SGASH
prior to the Separation followed by a contribution of such amount to the Escrow
Fund by SGASH and (b) SGASH shall be treated as the owner of the Escrow Fund
assets.  Accordingly, SGASH shall include in its Tax Returns all income,
gain, losses, deductions and credits with respect to the Escrow Fund
assets.  This Section 6 shall survive notwithstanding any
termination of this Agreement.

7.                                      
Notices.  Any notice, request, demand or
other communication given by any party under this Agreement (each a “notice”)
shall be in writing, may be given by a party or its legal counsel, and shall be
deemed to be duly given (i) when personally delivered or (ii) upon
delivery by an internationally recognized express courier service which
provides evidence of delivery or (iii) when four (4) Business Days have
elapsed after its transmittal by registered or certified mail, postage prepaid,
return receipt requested, addressed to the party to whom directed at that
party’s address as it appears below or another address of which that party has
given notice or (iv) when delivered by confirmed facsimile transmission if a
copy thereof is also delivered in person or by overnight courier.  Notices
of address change shall be effective only upon receipt notwithstanding the
provisions of the foregoing sentence.

Notices to SGASH:

 

Société Générale

1221 Avenue of the Americas

New York, New York 10020

Attn:  General Counsel, SG Americas

Facsimile:  (212) 278-7432

 

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

 

Mayer, Brown, Rowe & Maw LLP

1675 Broadway

New York, New York  10019

Attn:  James B. Carlson

Facsimile:  (212) 262-1910

 

6

Notices to Cowen and
Cowen LLC:

 

Cowen Group, Inc.

1221 Avenue of the Americas

New York, New York 10020

Attn:  General Counsel

Facsimile:  (646) 562-1861

 

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

Skadden, Arps, Slate, Meagher & Flom LLP

Four Times Square

New York, NY  10036-6522

Attn: Lou R. Kling

                               
 Thomas W.
Greenberg

Facsimile: (212) 735-2000

 

Notices to Escrow Agent:

JPMorgan Chase Bank, N.A.

Worldwide Securities Services

4 New York Plaza, 21st Floor

New York, NY 10004

Attention:  Glenn Sturman

Facsimile: 
(212) 623-6168

Notwithstanding
the above, in the case of communications delivered to the Escrow Agent pursuant
to clause (ii) or (iii) of this Section 7, such
communications shall be deemed to have been given on the date received by the
Escrow Agent.  In the event that the Escrow Agent, in its sole discretion,
shall reasonably determine that an emergency exists, the Escrow Agent may use
such other means of communication as the Escrow Agent deems appropriate, provided
that such notice shall be effective only upon actual receipt by the intended
recipient.

8.                                      
Binding Effect;
Assignment. 
This Agreement and all of the provisions hereof will be binding upon and inure
to the benefit of the parties hereto and their respective successors and
permitted assigns.

9.                                      
Severability.  If any provision of this
Agreement is held to be illegal, invalid or unenforceable under present or
future laws effective during the term of this Agreement, 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 of this
Agreement; and the remaining provisions of this Agreement 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.

10.                                
No Strict
Construction. 
The language used in this Agreement will be deemed to be the language chosen by
the parties hereto to express their mutual intent, and no rule of strict
construction will be applied against any person.

7

11.                                
Headings.  The headings used in this
Agreement are for convenience of reference only and do not constitute a part of
this Agreement and will not be deemed to limit, characterize or in any way
affect any provision of this Agreement, and all provisions of this Agreement
will be enforced and construed as if no heading had been used in this
Agreement.

12.                                
Counterparts.  This Agreement may be executed in
two or more counterparts, any one of which need not contain the signatures of
more than one person, but all such counterparts taken together will constitute
one and the same instrument.

13.                                
Governing Law.  All issues and questions
concerning the construction, validity, enforcement and interpretation of this
Agreement shall be governed by, and construed in accordance with, the laws of
the State of New York without giving effect to any choice of law or conflict of
law rules or provisions (whether of the State of New York or any other
jurisdiction) that would cause the application of the laws of any jurisdiction
other than the State of New York.  In furtherance of the foregoing, the
internal law of the State of New York shall control the interpretation and
construction of this Agreement, even though under that jurisdiction’s choice of
law or conflict of law analysis, the substantive law of some other jurisdiction
would ordinarily apply.

14.                                
Account Opening
Information. 
IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT IN THE UNITED
STATES AND/OR FOR NON-U.S. ACCOUNTS:  To help the government fight the
funding of terrorism and money laundering activities, federal law requires all
financial institutions to obtain, verify and record information that identifies
each person who opens an account.  When an account is opened, the Escrow
Agent will ask for information that will allow it to identify relevant parties.

15.                                
Merger of Escrow
Agent.  Any
corporation into which the Escrow Agent in its individual capacity may be
merged or converted or with which it may be consolidated, or any corporation
resulting from any merger, conversion or consolidation to which the Escrow
Agent in its individual capacity shall be a party, or any corporation to which
substantially all the corporate trust business of the Escrow Agent in its
individual capacity may be transferred, shall be the Escrow Agent under this Agreement
without further act, provided that, upon any merger, conversion,
consolidation of the Escrow Agent or transfer of its interest in this Agreement
or its corporate trust business, SGASH and Cowen may mutually agree in writing
to appoint a replacement escrow agent.

16.                                
Force Majeure.  In the event that any party
hereto is unable to perform its obligations under the terms of this Agreement
because of acts of God, strikes, equipment or transmission failure or damage
reasonably beyond its control, or other cause reasonably beyond its control,
the Escrow Agent shall not be liable for damages to the other parties for any
damages resulting from such failure to perform otherwise from such
causes.  Performance under this Agreement shall resume when the Escrow
Agent is able to perform substantially.

*                                        
*                                        
*                                        
*

8

IN WITNESS WHEREOF, the parties hereto have executed
this Escrow Agreement on the day and year first above written.

	
   

  	
  SG AMERICAS SECURITIES
  HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  COWEN GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  COWEN & CO, LLC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE BANK,
  N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

9

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