Amended
and Restated


Executive
Employment Agreement


 


This Amended and Restated Executive Employment
Agreement (this “Agreement”) is made as of the 11th day of June, 2013 by and between Liquid
Holdings Group, LLC, a Delaware limited liability company (“Holdings” or the “Employer”),
and Brian Ferdinand (the “Executive”). Holdings, any direct or indirect
wholly-owned subsidiary of Holdings, and any other affiliate company of the foregoing are sometimes referred to herein individually
as a “Liquid Company” and collectively as the “Liquid Company Group.”


 


WHEREAS, Executive and Holdings (individually,
a “Party” and together, the “Parties”) previously entered into that certain
Executive Employment Agreement dated as of November 27, 2012 (the “Prior Agreement”); and


 


WHEREAS, pursuant to Section 13 of the Prior
Agreement, the Prior Agreement may be amended in a writing signed by the Parties; and


 


WHEREAS, Holdings and the Executive have
determined that it is desirable and in their best interests to amend and restate the prior agreement to set forth the revised obligations
and duties of the Parties and that this Agreement shall supersede all previous agreements between the Parties with respect to the
subject matter contained herein, including, as of the Effective Date (as defined below), the Prior Agreement; and


 


WHEREAS, the Employer wishes to employ the
Executive, and the Executive is willing to be employed by the Employer, upon the terms and conditions provided in this Agreement.


 


NOW, THEREFORE, in consideration of the
promises and mutual covenants contained herein and for other good and valuable consideration, the receipt of which is mutually
acknowledged, the Parties, intending to be legally bound hereby, agree as follows:


 


1.          Employment.
The Employer hereby agrees to employ the Executive, and the Executive hereby agrees to be employed by the Employer, on the terms
and conditions set forth herein.


 


2.          Term.
Subject to the provisions for earlier termination as hereinafter provided, the term of this Agreement will begin on May 15, 2013
(the “Effective Date”) and will continue until the second anniversary of the Effective
Date (the “Initial Term of Employment”). This Agreement will be automatically renewed for successive
one (1) year terms (each, a “Renewal Term”) unless either the Employer or the Executive
sends written notice of termination to the other Party not less than sixty (60) days prior to the expiration of the Initial Term
of Employment or any Renewal Term. The Initial Term of Employment together with any Renewal Term(s) will hereinafter be referred
to as the “Term of Employment.”


 




    	 



    	 



    

 


3.          Position
and Duties; Place of Performance.


 


(a)          The
Executive will serve as Vice Chairman and Head of Corporate Strategy of Holdings, and in such role Executive shall have
such duties, responsibilities and authority customarily possessed by an executive in such position (subject to the input, direction
and oversight of the board of managers of Holdings (the “Board”)), together with such other duties as
may reasonably be assigned from time-to-time by the Board. During the entire Term of Employment, the Executive will also
be a member of the Board (though for the avoidance of doubt, the Nominating and Governance Committee of the Board shall retain
the discretion to not nominate Executive for re-election as a director, and any such failure to nominate Executive shall not constitute
a breach of this Agreement).


 


(b)          The
Executive will devote Executive’s full business time and best efforts to Executive’s employment and perform diligently
Executive’s duties hereunder; provided, the Executive may (i) serve on the board of other for profit or non-profit
entities, (ii) deliver lectures and fulfill speaking engagements and (iii) manage the Executive’s personal investments, so
long as such activities do not significantly interfere with the performance and fulfillment of the Executive’s duties and
responsibilities as an employee of Holdings in accordance with this Agreement and, in the case of the activities described in clause
(i) of this proviso, such activities will be conditioned upon consent by the Board. The Executive’s principal place of work
shall be located at Holdings’ principal office in Manhattan, New York.


 


(c)          The
Executive shall at all times comply with, and be subject to, such reasonable policies, procedures, rules and regulations as the
Employer may establish and maintain in effect from time to time, including the Employer’s Code of Conduct (collectively,
the “Policies”).


 


4.          Compensation.


 


(a)          Base
Salary. The Executive will receive from the Employer an annual base salary of four hundred and fifty thousand Dollars ($450,000)
(the “Base Salary”), payable in accordance with the standard practice of the Employer in the payment
of salaries of its employees but no less frequently than monthly. The Board will review the Base Salary from time to time, and
may, in its sole and absolute discretion, increase the Base Salary. The Executive’s Base Salary may not be reduced.


 


(b)          Additional
One Time Bonus. Upon completion of an Initial Public Offering, the Executive will receive a cash bonus that will equal the
difference between any salary actually received from Holdings for the period of time between May 15, 2012 and the date of the Initial
Public Offering (including pursuant to this Agreement) and an effective annual salary of $500,000 for the period of time between
May 15, 2012 and the date of the Initial Public Offering. For purposes of this Agreement, an Initial Public Offering shall mean
the listing of the Employer’s equity securities for public trading on a regulated exchange.


 




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(c)          Annual
Bonus. During the Term of Employment, the Executive shall be eligible to receive an annual performance bonus for each fiscal
year of the Employer at the discretion of the Employer, payable in cash (each an “Annual Bonus”), which
shall be determined in accordance with criteria established by the Board or any compensation committee appointed by the Board.


 


(d)          RSU
Grants. The Executive shall be entitled to receive 32.175 restricted stock units (“RSUs”) in respect
of the Common Units (as that term is defined in Holdings’ Limited Liability Company Agreement) of Holdings. The RSUs will
be granted as of the Effective Date (or as soon as practicable thereafter) and one-half of such grant will vest on each of the
next two anniversaries of the Effective Date. Upon termination of the Executive’s employment with the Company, the Executive
will retain all unvested RSUs, unless the Executive’s employment is terminated for Cause (as defined below), in which case
all unvested RSUs will be forfeited. All other terms of the RSU grants will be subject to the terms of the Company’s 2012
Amended and Restated Stock Incentive Plan.


 


(e)          Incentive
Compensation Awards. In addition to the RSU grants described in Section 4(d) above, the Executive shall be entitled to participate
in any equity-based compensation plan (or similar substitute equity incentive plan) of the Employer, as determined by the Board.


 


(f)          Executive
Benefits.


 


(i)          Executive
will also be provided with such medical, insurance and other employee privileges and benefits (“Benefits”)
as are afforded to other executive employees of the Employer.


 


(ii)         The
Employer may, at its election and for its benefit, obtain insurance against the disability, accidental loss or death of the Executive
(e.g. “Key Man Insurance”) and the Executive shall submit to such physical examinations and supply such information
as may be reasonably required in connection with the obtainment thereof.


 


(g)          Expenses.
The Executive will be entitled to prompt reimbursement by the Employer for all reasonable out-of-pocket expenses incurred by him
in performing services under this Agreement, upon submission of such records as required by the Employer.


 


(h)          Vacation.
The Executive shall be entitled to paid vacation of four (4) weeks per year and such other paid absences in accordance with the
Policies as in effect for other senior executives of the Employer.


 


5.          Termination
of Employment. Executive shall be an at-will employee of the Employer and, subject only to the terms of this Agreement, Executive’s
employment may be terminated for any reason or no reason and at any time, including, without limitation, under the following circumstances:


 




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(a)          Death.
The Executive’s employment shall be terminated upon Executive’s death.


 


(b)          Disability.
The Executive’s employment may be terminated by the Employer due to illness or other physical or mental disability of the
Executive, resulting in Executive’s inability to perform substantially Executive’s duties under this Agreement for
a period of ninety (90) or more consecutive days or for one hundred eighty (180) days in the aggregate during any consecutive twelve
(12) month period (“Disability”).


 


(c)          Cause.
The Executive’s employment may be terminated by the Employer for Cause. For purposes of this Agreement, the Employer will
have “Cause” to terminate the Executive’s employment upon:


 


(i)          the
Executive’s conviction or plea of nolo contendere for any felony;


 


(ii)         the
Executive’s commission of any act of embezzlement, theft, or fraud, or any misappropriation by the Executive of funds or
property of any Liquid Company, or any other willful misconduct or deliberate injury to any Liquid Company in the performance of
Executive’s duties hereunder;


 


(iii)        the
Executive’s willful failure to correct, cease or otherwise alter any act or omission that, directly or indirectly, could
reasonably be expected to have a material adverse effect on the business or operations of any Liquid Company, in each case where
such failure shall continue beyond a period of fifteen (15) calendar days immediately following the Executive’s receipt of
written notice from the Board;


 


(iv)        the
Executive’s intentional failure to perform Executive’s duties or carry out lawful directions of the Board; or


 


(v)         the
Executive’s willful material breach of any provision of this Agreement or any other agreement between the Executive and any
Liquid Company, in each case where such breach shall continue beyond a period of fifteen (15) calendar days immediately following
Executive’s receipt of written notice from the Board thereof.


 


Any termination for Cause shall be effectuated
by giving the Executive written notice setting forth in reasonable detail the specific conduct of the Executive that constitutes
Cause and the specific provision(s) of this Agreement on which the Employer relied.


 


Any termination for Cause will not be in
limitation of any other right or remedy the Employer has under this Agreement or otherwise. In the event that the Executive’s
employment is terminated by the Employer for Cause, any amount due to the Executive under Section 6 below may be offset to the
extent of any losses resulting, directly or indirectly, to the Liquid Company Group from Executive’s conduct resulting in
the for Cause termination.


 




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(d)          Termination
by Executive for Good Reason. The Executive’s employment may be terminated by the Executive for “Good Reason.”
For the purposes of this Agreement, the Executive will have “Good Reason” to terminate Executive’s
employment upon:


 


(i)          any
reduction in Executive’s Base Salary;


 


(ii)         the
assignment to Executive of any duties inconsistent in any material respect with Executive’s position (including, without
limitation, status, office, title and reporting chain), authority, duties or responsibilities hereunder, or any other action that
results in a material diminution in any such position, duties, authority or responsibilities hereunder;


 


(iii)        any
change in Executive’s principal place of work to a location outside Manhattan, New York without the prior written consent
of Executive; or


 


(iv)        any
other material breach by the Employer of this Agreement, where the breach shall continue beyond a period of fifteen (15) calendar
days immediately following the Board’s receipt of written notice from the Executive thereof.


 


A termination of employment by the Executive for Good Reason
shall be effectuated by giving the Employer written notice (“Notice of Termination for Good Reason”),
not later than sixty (60) days following the occurrence of the circumstance that constitutes Good Reason, setting forth in reasonable
detail the specific conduct of the Employer that constitutes Good Reason and the specific provision(s) of this Agreement on which
the Executive relied. The Employer shall be entitled, during the 30-day period following receipt of a Notice of Termination for
Good Reason, to cure the circumstances that gave rise to Good Reason, provided that the Employer shall be entitled to waive its
right to cure or reduce the cure period by delivery of written notice to that effect to the Executive (such 30-day or shorter period,
the “Cure Period”). If during the Cure Period, such circumstance is remedied, the Executive will not
be permitted to terminate employment for Good Reason as a result of such circumstance. If, at the end of the Cure Period, the circumstance
that constitutes Good Reason has not been remedied, the Executive will be entitled to terminate employment for Good Reason during
the 30-day period that follows the end of the Cure Period. If the Executive does not terminate employment during such 30-day period,
the Executive will not be permitted to terminate employment for Good Reason as a result of such event.


 


6.          Compensation
Upon Termination.


 


(a)          If
the Executive’s employment is terminated as a result of the Executive’s death or Disability, Executive, or Executive’s
estate, will be entitled to:


 


(i)          any
Base Salary earned but not yet paid;


 


(ii)         continuation
of Executive’s Base Salary (the “Severance Payments”) for the period of two (2) months from the
date of termination.


 




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(iii)        reimbursement
in accordance with this Agreement of any business expense incurred by the Executive but not yet paid; and


 


(iv)        other
compensation or Benefits accrued and earned by the Executive through the date of Executive’s death or Disability in accordance
with applicable plans and programs of the Employer.


 


(b)          If
the Executive’s employment is terminated by the Employer for Cause, or by the Executive for other than Good Reason, the Executive
will be entitled to:


 


(i)          any
Base Salary earned but not yet paid;


 


(ii)         reimbursement
in accordance with this Agreement of any business expense incurred by the Executive but not yet paid; and


 


(iii)        other
compensation or Benefits accrued and earned by the Executive through the date of Executive’s termination, in accordance with
applicable plans and programs of the Employer.


 


(c)          If
the Executive’s employment is terminated by the Employer without Cause, or terminated by the Executive for Good Reason, the
Executive will be entitled to:


 


(i)          any
Base Salary earned but not yet paid;


 


(ii)         continuation
of the Base Salary (the “Severance Payments”), at the rate in effect on the date of Executive’s
termination of employment (determined without regard to any reduction constituting Good Reason) and, subject to Section 6(d), payable
to the Executive in accordance with the Employer’s standard payroll procedures, for the greater of one (1) year from the
date of termination or the remainder of the Term of Employment (the “Severance Period”);


 


(iii)        reimbursement
in accordance with this Agreement of any business expenses incurred by the Executive but not yet paid to him on the date of Executive’s
termination of employment;


 


(iv)        other
compensation or Benefits accrued and earned by the Executive through the date of Executive’s termination, in accordance with
applicable plans and programs of the Employer; and


 


(v)         continuation
of Benefits that are made available to executive employees of the Employer in general in accordance with applicable plans and programs
of the Employer until the expiration of the Severance Period.


 




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(d)          Any
amounts due under this Section 6 are in the nature of severance payments or liquidated damages or both, and will fully compensate
the Executive and Executive’s dependents or beneficiaries, as the case may be, for any and all direct damages and consequential
damages that any of them may suffer as a result of lawful termination of the Executive’s employment, and they are not in
the nature of a penalty. In order to receive any of the Severance Payments, prior to the payment of such amounts, Executive shall
execute and agree to be bound by a release of claims substantially in the form attached hereto as Exhibit A within sixty
(60) days after the date of termination of the Executive’s employment. Any Severance Payments due prior to the sixtieth day
after the date of the Executive’s termination of employment shall be payable on the first payroll date following such sixtieth
day and the remaining Severance Payments shall be made in accordance with the Employer’s standard payroll schedule. The Employer
shall tender the release of claims to the Executive within fifteen (15) days following the date of Executive’s termination
of employment and, upon any failure of the Employer to so tender such release within such time period, the Executive’s obligation
to provide such release in order to receive the Severance Payments shall cease to apply.


 


(e)          The
Executive shall not be required to seek other employment or attempt in any way to mitigate or reduce the amounts payable to him
under this Section 6 and such amounts shall not be reduced by any compensation earned by the Executive subsequent to the termination
of Executive’s employment with the Employer.


 


(f)          For
the avoidance of doubt, Executive will not be entitled to a Severance Payment as a result of the Employer’s election not
to renew this Agreement pursuant to Section 2.


 


(g)          Upon
the Executive’s termination of employment with Employer, the Executive’s employment with any other Liquid Company shall
terminate and, if requested by the Board, the Executive shall immediately resign from all other positions with any Liquid Company.


 


7.          Non-Competition
& Other Covenants.


 


(a)          The
Executive acknowledges that he has had or will have unlimited access to the confidential information and business methods relating
to the Liquid Company Group’s business and operations and that the Employer would be irreparably injured and the goodwill
of the Employer would be irreparably damaged if the Executive were to breach the covenants set forth in this Section 7.
The Executive further acknowledges that the covenants set forth in this Section 7 are reasonable in scope and duration and
do not unreasonably restrict the Executive’s association with other business entities, either as an employee or otherwise
as set forth herein.


 


(b)          During
the Term of Employment and for one (1) year after termination of the Executive’s employment (the “Noncompete
Period”), the Executive must not in North America, or in any foreign country in which the Liquid Company Group is,
as of the date of termination, conducting business or has taken significant steps to commence conducting business, directly or
indirectly, whether as an individual on the Executive’s own account, or as a shareholder, partner, member, joint venturer,
director, officer, employee, consultant, creditor and/or agent, of any person, firm or organization or otherwise:


 




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(i)          own,
manage, control or participate in the ownership, management or control of, or be employed or engaged by or otherwise affiliated
or associated as a consultant, independent contractor or otherwise with, any other corporation, partnership, proprietorship, firm,
association or other business entity or otherwise engage in any business that is engaged in the Business, as described in Section
7(d);


 


(ii)         employ,
or solicit for employment, other than by means of general advertising to the public, any present, former or future employee of
any Liquid Company that is employed by a Liquid Company during the Term of Employment; or


 


(iii)        affirmatively
induce, other than by means of general advertising to the public, any person who is a present or future employee, officer, agent,
affiliate or customer of any Liquid Company during the Term of Employment to terminate his, her or its relationship with such Liquid
Company.


 


For the avoidance of doubt, the foregoing restrictions shall
not apply in the event that the term of the Executive’s employment is not renewed pursuant to Section 2 of this Agreement.


 


(c)          Notwithstanding
anything herein to the contrary, the Executive will be permitted to own shares of any class of capital stock or other equity interests
of any publicly held entity so long as the aggregate holdings of the Executive represent less than five percent (5%) of the outstanding
shares of such class of capital stock or equity.


 


(d)          For
purposes of Section 7, the “Business” shall mean:


 


(i)          Operation
of a so-called “Mini Prime Brokerage” that services hedge funds with less than $50 million of assets under management
with a variety of services including capital introduction, execution services, office space, and technology; or


 


(ii)         Operation
of a commercial “front end” trading technology company and/or “risk management” technology company engaged
in selling/licensing “front end” trading systems and/or “risk management” systems to traders or firms and
receiving remuneration for the license. A “front end” is a program that enables a trader to enter orders to a single
or multiple exchanges on a manual basis. A “risk management” system is used to evaluate and quantify risk of traders’
and/or firms’ trading exposure.


 




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(e)          Notwithstanding
the foregoing, Section 7 shall not preclude the Executive from (i) forming or operating Executive’s own hedge fund,
(ii) working at or managing a hedge fund (except for any such fund that has a controlling interest, directly or indirectly, in
any entity engaged in the Business), (iii) trading for Executive’s own account (individually or within a partnership construct),
(iv) creating a technology company that does not operate in the financial services space, is not engaged in the Business and does
not otherwise compete with any member of the Liquid Company Group, and/or (v) creating technology that will support Executive’s
personal trading, which technology will not be sold, resold or licensed; provided that in all cases the Executive shall continue
to be bound by the terms and conditions set forth in the Proprietary Rights Agreement (as defined below).


 


(f)          Non-Disparagement
Restrictions. Each of the Executive and the Employer covenants and agrees that during the Noncompete Period, such Party will
not, directly or indirectly, either in writing or by any other medium, make any disparaging, derogatory or negative statement,
comment or remark about the other Party or any of its affiliated companies, or any of their respective officers, directors, employees,
affiliates, subsidiaries, successors and assigns, as the case may be; provided, however, that either Party may make such statements,
comments or remarks as are necessary to comply with law.


 


8.          Rights
and Remedies Upon Breach.


 


(a)          The
Executive expressly agrees and understands that the remedy at law for any breach by the Executive of Section 7 will be inadequate
and that the damages flowing from such breach are not readily susceptible to being measured in monetary terms. Accordingly, it
is acknowledged that upon adequate proof of the Executive’s violation of Section 7, the Employer will be entitled,
among other remedies, to injunctive relief and may obtain a temporary restraining order restraining any threatened or further breach.
Nothing in this Section 8(a) will be deemed to limit the Employer’s remedies at law or in equity for any breach by
the Executive of any of the provisions of this Agreement which may be pursued or availed of by the Employer.


 


(b)          In
the event any court of competent jurisdiction determines that the specified time period or geographical area set forth in Section
7 is unreasonable, arbitrary or against public policy, then a lesser time period or geographical area that is determined by
the court to be reasonable, non-arbitrary and not against public policy may be enforced.


 


(c)          In
the event the Employer has successfully asserted in a formal legal action that the Executive is violating any legally enforceable
provision of Section 7 as to which there is a specific time period during which the Executive is prohibited from taking
certain actions or engaging in certain activities, then, in such event the violation will toll the running of the time period from
the date of the assertion until the violation ceases.


 


9.          Executive’s
Representations & Warranties. The Executive represents and warrants to the Employer as follows:


 




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(a)          The
Executive is not now, and will not become during the Term of Employment, a party to or otherwise subject to any other agreement
or restriction that could interfere with Executive’s employment with the Employer or Executive’s or the Employer’s
rights and obligations hereunder. Executive’s acceptance of employment with the Employer and the performance of Executive’s
duties hereunder will not breach the provisions of any contract, agreement, or understanding to which he is party or any duty owed
by him to any other third party, including, without limitation, any non-competition agreement, non-solicitation agreement, or confidentiality
agreement.


 


(b)          The
Executive: (i) is not subject to an order of the United States Securities and Exchange Commission (the “SEC”)
issued under Section 203(f) of the Investment Advisers Act of 1940 (the “Act”); (ii)
has not been found by the SEC to have engaged in, and has not been convicted of engaging in, any of the conduct specified in Section
203(e)(1), (5) or (6) of the Act; and (iii) is not subject to an order, judgment or decree described in Section 203(e)(4) of the
Act. The Executive has not been convicted within the last 10 years of any felony or misdemeanor.


 


10.         Assignability;
Binding Nature. This Agreement will be binding upon and inure to the benefit of the Parties and their respective successors,
heirs and personal representatives (in the case of the Executive in the event of Executive’s death or Disability) and permitted
assigns. The Executive’s heirs and personnel representatives are intended third party beneficiaries hereunder. No rights
or obligations of the Employer under this Agreement may be assigned or transferred by the Employer without the prior written consent
of the Executive, except that such rights or obligations may be assigned or transferred pursuant to (a) a merger or consolidation
in which an Employer is not the continuing entity, or (b) a sale or liquidation of all or substantially all of the assets of the
Liquid Company Group, provided that the assignee or transferee is the successor to all or substantially all of the assets of the
Liquid Company Group and such assignee or transferee assumes the liabilities, obligations and duties of the Liquid Company Group,
as contained in this Agreement, either contractually or as a matter of law. No obligations of the Executive under this Agreement
may be assigned or transferred by the Executive.


 


11.         Indemnification;
Directors and Officers Insurance. The Employer agrees that in connection with the Executive’s service to the Employer
pursuant hereto, the Executive shall be entitled to the benefit of any indemnification provisions in the Employer’s Limited
Liability Company Agreement and/or any of its affiliated companies and any director and officer liability insurance coverage carried
by the Employer and/or any of its affiliated companies, if any. The Employer shall take no action to amend or revise the provisions
in its Limited Liability Company Agreement that would reduce or impair the right of the Executive to indemnification thereunder.


 


12.         Entire
Agreement. This Agreement, together with the Form of Release attached hereto as Exhibit A and the At Will Employment,
Confidential Information, Invention Assignment and Arbitration Agreement attached hereto as Exhibit B (the “Proprietary
Rights Agreement”), contains the entire understanding of the Parties with regard to its subject matter
and supersedes all prior agreements and understandings between the Parties with regard to their subject matter, including, as of
the Effective Date, the Prior Agreement.


 




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13.         Amendment
or Waiver. No provision in this Agreement may be amended unless such amendment is agreed to in writing and signed by both the
Executive and authorized officers of the Employer. No waiver by either Party of any breach by the other Party of any condition
or provision contained in this Agreement to be performed by such other Party will be deemed a waiver of a similar or dissimilar
condition or provision at the same or any prior or subsequent time. Any waiver must be in writing and signed by the Executive or
authorized officers of the Employer, as the case may be.


 


14.         Severability.
Each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if
any provision of this Agreement is held to be prohibited or invalid under applicable law, such provision shall be ineffective only
to the extent of such prohibition or invalidity, without invalidating the remainder of this Agreement.


 


15.         Survivorship.
The respective rights and obligations of the Parties and third party beneficiaries hereunder, including, without limitation the
covenants of Section 7, will survive any termination of the Executive’s employment with the Employer to the extent
necessary to the intended preservation of such rights and obligations as described in this Agreement.


 


16.         Dispute
Resolution. In the event that the Parties are unable to resolve any controversy or claim arising out of or in connection with
this Agreement or breach hereof, such dispute shall be submitted to binding arbitration administered by the American Arbitration
Association under its national rules for the resolution of employment disputes. The Parties agree that each will bear their own
costs and attorneys’ fees and the arbitrator shall not have authority to award attorneys’ fees or costs to any Party.
The arbitrator shall have no power or authority to make awards or orders granting relief that would not be available to a Party
in a court of law. The arbitrator’s award is limited by and must comply with this Agreement. The decision of the arbitrator
shall be final and binding on the Parties. Notwithstanding the foregoing, no claim or controversy for injunctive or equitable relief
contemplated by or allowed under applicable law pursuant to Section 8 above or the Proprietary Rights Agreement will be
subject to arbitration under this Section 16, but will instead be subject to determination in a court of competent jurisdiction
applying New York law, consistent with Sections 17, 18 and 19 of this Agreement, where either party may seek
injunctive or equitable relief.


 


17.         Applicable
Law. The laws of the State of New York shall govern the interpretation, validity and performance of the terms of this Agreement,
regardless of the laws that might be applied under principles of conflicts of law.


 


18.         Consent
to Jurisdiction. Any legal action, suit, or proceeding arising out of or relating to this Agreement may only be instituted
in a state or federal court in the State of New York, and each party agrees not to assert, by way of motion, as a defense, or otherwise,
in any such action, suit, or proceeding, any claim that it is not subject personally to the jurisdiction of such court, that the
action, suit, or proceeding is brought in an inconvenient forum, that the venue of the action, suit, or proceeding is improper
or that this Agreement or the subject matter hereof may not be enforced in or by such court. Each party further irrevocably submits
to the jurisdiction of any such court in any such action, suit, or proceeding.


 




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19.         Waiver
of Jury Trial. THE PARTIES HEREBY KNOWINGLY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION
LITIGATED IN ANY COURT BASED UPON, WITH RESPECT TO, IN CONNECTION WITH, OR ARISING OUT OF THIS AGREEMENT AND ANY AND ALL OTHER
COMMON LAW AND STATUTORY CLAIMS. IN THE EVENT OF LITIGATION, A COPY OF THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL
BY THE COURT.


 


20.         Miscellaneous.


 


(a)          The
Employer shall withhold all applicable federal, state and local taxes, social security and workers’ compensation contributions
and other amounts as may be required by law with respect to compensation payable to the Executive.


 


(b)          Notwithstanding
anything herein to the contrary, this Agreement is intended to be interpreted and applied so that the payment of the compensation
and benefits set forth herein either shall either be exempt from the requirements of Section 409A (“Section 409A”)
of the Internal Revenue Code of 1986, as amended (the “Code”) or shall comply with the requirements
of such provision.


 


(c)          Notwithstanding
any provision of this Agreement to the contrary, if the Executive is a “specified employee” within the meaning of Section
409A, any payments or arrangements due upon or following a termination of the Executive’s employment under any arrangement
that constitutes a “nonqualified deferral of compensation” within the meaning of Section 409A shall be delayed and
paid or provided, without interest, on the earlier of (i) the first business day after the date which is six months after the Executive’s
“separation from service” (as such term is defined in Section 409A and the regulations and other published guidance
thereunder) for any reason other than death, and (ii) the date of the Executive’s death.


 


(d)          After
the Executive’s termination of employment, the Executive shall have no duties or responsibilities that are inconsistent with
having a “separation from service” within the meaning of Section 409A and, notwithstanding anything in the Agreement
to the contrary, distributions upon termination of employment of nonqualified deferred compensation may only be made upon a “separation
from service” as determined under Section 409A and such date shall be the Termination Date for purposes of this Agreement.
Each payment under this Agreement or otherwise shall be treated as a separate payment for purposes of Section 409A. In no event
may Executive, directly or indirectly, designate the calendar year of any payment to be made under this Agreement which constitutes
a “nonqualified deferral of compensation” within the meaning of Section 409A and to the extent an amount is payable
within a time period, the time during which such amount is paid shall be in the discretion of the Employer.


 




    	12



    	 



    

 


(e)          Notwithstanding
any other provision of this Agreement to the contrary, in the event, and to the extent that, the provision or reimbursement of
costs incurred in connection with any post-termination welfare benefits provided under this Agreement results in the deferral of
compensation within the meaning of Section 409A of the Code because the benefits are outside the scope of Section 1.409A-1(b)(9)(v)
of the Treasury Regulations and result in the deferral of compensation within the meaning of Section 409A of the Code, then the
reimbursement or provision of such benefits shall be subject to the requirements of Section 1.409A-3(i)(1)(iv) of the Treasury
Regulations, and (1) reimbursements or benefits shall be provided only during the applicable period specified in the Agreement,
(2) the amount of expenses eligible for reimbursement or the benefits provided in kind during a particular calendar year shall
not affect the expenses eligible for reimbursement or the in kind benefits to be provided in any other calendar year, (3) the reimbursement
of any eligible expense shall be made on or before December 31 of the year following the year in which the expense was incurred
provided reasonable documentation of such expense is submitted to the Employer within ninety (90) days after the date any such
expense was incurred, and (4) the Executive’s right to reimbursement or the provision of in-kind benefits shall not be subject
to liquidation or exchange for another benefit.


 


21.         Notices.
All notices, requests, consents, claims, demands, waivers and other communications hereunder shall be in writing and shall be deemed
to have been given: (a) when delivered by hand (with written confirmation of receipt); (b) when received by the addressee if sent
by a nationally recognized overnight courier (receipt requested); (c) on the date sent by facsimile or e-mail of a PDF document
(with confirmation of transmission) if sent during normal business hours of the recipient, and on the next business day if sent
after normal business hours of the recipient; or (d) on the third day after the date mailed, by certified or registered mail, return
receipt requested, postage prepaid. Such communications must be sent to the respective parties at the following addresses (or at
such other address for a party as shall be specified in a notice given in accordance with this Section 21):


 


	If to Holdings: 	
        800 Third Avenue, 39th Floor

        New York, NY 10022

        Attention: Brian Storms, CEO

        Telephone: (212) 293-2690

        Facsimile: (212) 293-2472

        E-mail: bstorms@liquidholdingsgroup.com

	 	 
	with a copy to:	
        Eduardo Gallardo

        Gibson Dunn & Crutcher

        200 Park Avenue

        New York, New York 10166

        Telephone: (212) 351-3847

        Facsimile: (212) 351-5245

        E-mail: egallardo@gibsondunn.com



 




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	If to the Executive:	
        Brian Ferdinand

        224 Muttontown Eastwoods Road

        Muttontown, NY 11791

        Telephone: (201) 401-4042

        E-mail: bferdinand@liquidholdingsgroup.com

	 	 
	with a copy to:	
        Jonathan Warner

        Warner & Scheuerman

        6 West 18th Street

        New York, NY 10011

        Telephone: (212) 924-7111

        Facsimile: (212) 924-6111

        E-mail: jdwarner@warnerandscheuerman.com



 


22.         Headings.
The section and other headings contained in this Agreement are for convenience of reference only and shall not affect the meaning
or interpretation of this Agreement.


 


23.         Counterparts.
This Agreement may be executed in one or more counterparts, each of which when so executed and delivered shall be deemed an original
and all of which together shall be deemed to be one and the same agreement.


 


[SIGNATURE PAGE FOLLOWS]


 




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IN WITNESS WHEREOF, the Parties have executed
this Executive Employment Agreement as of the date first above written.


 


	 	LIQUID HOLDINGS GROUP, LLC
	 	 
	 	By: 	/s/ Brian M. Storms
	 	Name: Brian M. Storms
	 	Title: Chief Executive Officer
	 	 
	 	EXECUTIVE
	 	 
	 	/s/ Brian Ferdinand
	 	Brian Ferdinand


 





Signature Page to


Executive Employment Agreement







 




    	 



    	 



    

 


EXHIBIT A


 


FORM OF RELEASE


 




    	 



    	 



    

 


AGREEMENT AND RELEASE


 


This Separation Agreement and Release (“Agreement”)
is made by and between __________ (“Employee”) and Liquid Holdings Group, LLC, a Delaware limited liability
company (“Employer”) (collectively referred to as the “Parties” or individually referred
to as a “Party”).


 


RECITALS


 


WHEREAS, Employee was employed by Employer
and ADP TotalSource as co-employers;


 


WHEREAS, Employee separated from employment
with Employer and ADP TotalSource effective [Date] (the “Separation Date”); and


 


WHEREAS, the Parties wish to resolve any
and all disputes, claims, complaints, grievances, charges, actions, petitions, and demands that the Employee may have against Employer
and any of the Releasees as defined below, including, but not limited to, any and all claims arising out of or in any way related
to Employee’s employment with or separation from Employer;


 


NOW, THEREFORE, in consideration of the
mutual promises made herein, Employer and Employee hereby agree as follows:


 


1.          Subject
to Employee’s compliance with this Agreement and Release, Employer agrees to provide Employee with severance payment in
the amount of [DOLLAR AMOUNT], minus applicable withholdings and deductions, to be paid within ten (10) business days of the effective
date of this Agreement and Release. [Employer also agrees to pay any Consolidated Omnibus Budget Reconciliation Act (“COBRA”)
premium for [#] months if Employee elects COBRA continuation coverage. (Employee may elect to continue health insurance coverage,
following the Separation Date, at Employee’s own expense in accordance with the provisions of COBRA regardless of whether
Employee enters into this Agreement and Release).] The consideration set forth in this Paragraph 1 is inclusive of any and all
amounts, including but not limited to attorneys' fees, that may be claimed by Employee or on Employee's behalf against Employer.
Employee's benefits will be governed by applicable plan terms.


 


2.          Employee
will receive by [DATE OF NEXT PAYDAY] any salary, wages, incentives, bonuses, commissions and any other type of compensation,
as well as payment for accrued, unused paid time off, where mandated by law, due to Employee, to be paid in full for work performed
through and including the Separation Date. Employee further acknowledges that, as of the date of Employee's signing of this Agreement
and Release, Employee has sustained no injury or illness related in any way to Employee's employment with Employer for which a
workers compensation claim has not already been filed.


 




    	 



    	 



    

 


3.          In
return for Employer's agreement to provide Employee with the consideration referred to in Paragraph 1, Employee, for Employee and
Employee's heirs, beneficiaries, devisees, privies, executors, administrators, attorneys, representatives, and agents, and Employee's
and their assigns, successors and predecessors, hereby releases and forever discharges Employer and ADP TotalSource, their parents,
subsidiaries and affiliates, its and their officers, directors, employees, members, agents, attorneys and representatives, and
the predecessors, successors and assigns of each of the foregoing (collectively, the "Released Parties") from
any and all actions, causes of action, suits, debts, claims, complaints, charges, contracts, controversies, agreements, promises,
damages, counterclaims, cross-claims, claims for contribution and/or indemnity, claims for costs and/or attorneys' fees, judgments
and demands whatsoever, in law or equity, known or unknown, Employee ever had, now has, or may have against the Released Parties
as of the date of Employee's signing of this Agreement and Release. This release includes, but is not limited to, any claims alleging
breach of express or implied contract, wrongful discharge, constructive discharge, breach of an implied covenant of good faith
and fair dealing, negligent or intentional infliction of emotional distress, negligent supervision or retention, violation of the
Age Discrimination in Employment Act, the Older Workers Benefit Protection Act, the Civil Rights Act of 1866, Title VII of the
Civil Rights Act of 1964, the Americans with Disabilities Act, claims pursuant to any other federal, state or local law regarding
discrimination, harassment or retaliation based on age, race, sex, religion, national origin, marital status, disability, sexual
orientation or any other unlawful basis or protected status or activity, and claims for alleged violation of any other local, state
or federal law, regulation, ordinance, public policy or common-law duty having any bearing whatsoever upon the terms and conditions
of, and/or the cessation of Employee's employment with and by Employer. This release does not include claims that may not be released
under applicable law.


 


4.          Employee
agrees not only to release and discharge the Released Parties from any and all claims against the Released Parties that Employee
could make on Employee's own behalf, but also those which may have been or may be made by any other person or organization on Employee's
behalf. Employee specifically waives any right to become, and promises not to become, a member of any class in a case in which
any claim or claims are asserted against any of the Released Parties based on any acts or omissions occurring on or before the
date of Employee's signing of this Agreement and Release. If Employee is asserted to be a member of a class in a case against any
of the Released Parties based on any acts or omissions occurring on or before the date of Employee's signing of this Agreement
and Release, Employee shall immediately withdraw with prejudice in writing from said class, if permitted by law to do so. Employee
agrees that Employee will not encourage or assist any person in filing or pursuing any proceeding, action, charge, complaint, or
claim against the Released Parties, except as required by law.


 


5.          This
Agreement and Release is not intended to interfere with Employee's exercise of any protected, nonwaivable right, including Employee's
right to file a charge with the Equal Employment Opportunity Commission or other government agency. By entering into this Agreement
and Release, however, Employee acknowledges that the consideration set forth herein is in full satisfaction of any amounts to which
Employee might be entitled and Employee is forever discharging the Released Parties from any liability to Employee for any acts
or omissions occurring on or before the date of Employee's signing of this Agreement and Release.


 


6.          Neither
this Agreement and Release, nor anything contained herein, shall be construed as an admission by the Released Parties of any liability
or unlawful conduct whatsoever. The parties hereto agree and understand that the consideration set forth in Paragraph 1 is in excess
of that which Employer is obligated to provide to Employee, and that it is provided solely in consideration of Employee's execution
of this Agreement and Release. Employer and Employee agree that the consideration set forth in Paragraph 1 is sufficient consideration
for the release being given by Employee in Paragraphs 3, 4 and 5, and for Employee's other promises herein.


 




    	 



    	 



    

 


7.          Employee’s
signature below constitutes Employee’s certification under penalty of perjury that Employee has returned any originals and
all copies of all files, notes, documents, slides, computer disks, printouts, reports, lists of Employer’s clients or leads
or referrals to prospective clients, and other media or property in Employee’s possession or control which contain or pertain
to Confidential Information (as defined below) and other items provided to Employee by Employer, developed or obtained by Employee
in connection with Employee’s employment with Employer, or otherwise belonging to Employer, including all property of Employer,
such as supplies, keys, access devices, books, identification cards, computers, telephones, and other equipment, and that Employee
has not supplied any such Confidential Information to any person, except as was required to carry out Employee’s duties as
an employee of Employer.


 


8.          Employee
understands and agrees that Employee may have learned or had access to, or assisted in the development of, highly confidential
and sensitive information and trade secrets about Employer, its operations and its clients, and that providing its clients with
appropriate assurances that their confidences will be protected is crucial to Employer’s ability to obtain clients, maintain
good client relations, and conform to contractual obligations. “Confidential Information” means any non-public
information that relates to the actual or anticipated business or research and development of Employer, technical data, trade secrets
or know-how, and includes, but is not limited to: (i) financial and business information related to Employer, such as strategies
and plans for future business, new business, product or other development, potential acquisitions or divestitures, and new marketing
ideas; (ii) product and technical information related to Employer, such as product formulations, new and innovative product ideas,
methods, procedures, devices, equipment, machines, data processing programs, software, software codes, computer models, and research
and development projects; (iii) client information, such as the identity of Employer’s clients, the names of representatives
of Employer’s clients responsible for entering into contracts with Employer, the amounts paid by such clients to Employer,
specific client needs and requirements, and leads and referrals to prospective clients; (iv) personnel information, such as the
identity and number of Employer’s other employees, their salaries, bonuses, benefits, skills, qualifications, and abilities;
(v) any and all information in whatever form relating to any client or client of Employer, including but not limited to its business,
employees, operations, systems, assets, liabilities, finances, products, and marketing, selling, and operating practices; (vi)
any information not included in (i) or (ii) above which Employee knows or should know is subject to a restriction on disclosure
or which Employee knows or should know is considered by Employer or Employer’s clients or prospective clients to be confidential,
sensitive, proprietary, or a trade secret or is not readily available to the public; and (vii) intellectual property, including
inventions and copyrightable works. Confidential Information is not generally known or available to the general public, but has
been developed, compiled or acquired by Employer at its great effort and expense. Confidential Information can be in any form:
oral, written, or machine readable, including electronic files.


 


9.          Employee
acknowledges and agrees that Employer is engaged in a highly competitive business and that its competitive position depends upon
its ability to maintain the confidentiality of the Confidential Information, which was developed, compiled and acquired by Employer
at its great effort and expense. Employee further acknowledges and agrees that any disclosing, divulging, revealing or using of
any of the Confidential Information, other than as specifically authorized by Employer, will be highly detrimental to Employer
and will cause it to suffer serious loss of business and pecuniary damage. Accordingly, Employee agrees that Employee will not,
for any purpose whatsoever, directly or indirectly use, disseminate, or disclose to any person, organization, or entity Confidential
Information, except as expressly authorized by the highest executive officer of Employer or by order of a court of competent jurisdiction
after providing Employer with sufficient notice to contest such order.


 




    	 



    	 



    

 


10.         Employee
will direct all requests for references to Employer’s Human Resources Department, who will confirm Employee's job title,
dates of employment and, with written authorization from Employee, Employee's salary. Employee agrees to refrain from making statements
that may reasonably be construed as negative or in any manner disparaging of the Released Parties.


 


11.         Employee
agrees and promises not to disclose, either directly or indirectly, in any manner whatsoever, any information regarding the existence
or terms of this Agreement and Release, to any person or entity, except to members of Employee's immediate family, Employee's attorney
and Employee's accountant and/or financial advisor, provided that such persons agree to keep this information confidential, and
except as may be required by law.


 


12.         Employee
agrees not to use, disclose to others, or permit anyone access to any of Employer's trade secrets or confidential or proprietary
information without Employer's express consent, and to return immediately to Employer all Employer property upon termination of
Employee's employment. Employee shall not retain any copy or other reproduction whatsoever of any Employer property after the termination
of Employee's employment. Employee will also comply with the Confidentiality Agreement signed by Employee.


 


13.         Each
party shall bear its own costs and attorneys' fees, if any, incurred in connection with this Agreement and Release.


 


14.         This
Agreement and Release contains the full agreement of the parties and may not be modified, altered, changed or terminated except
upon the express prior written consent of Employer and Employee or their authorized agents.


 


15.         Employee
acknowledges and agrees that: (a) no promise or inducement for this Agreement and Release has been made except as set forth in
(I) this Agreement and Release and (II) the Amended and Restated Executive Employment Agreement, dated as of June 11, 2013, between
the Company and Employee; (b) this Agreement and Release is executed by Employee without reliance upon any statement or representation
by Employer except as set forth herein; (c) Employee is legally competent to execute this Agreement and Release and to accept
full responsibility therefor; (d) Employee has been given forty-five (45) days within which to consider this Agreement and
Release; (e) Employee has used all or as much of that forty-five (45) day period as Employee deemed necessary to consider
fully this Agreement and Release and, if Employee has not used the entire forty-five (45) day period, Employee waives that period
not used; (f) Employee has read and fully understands the meaning of each provision of this Agreement and Release; (g) Employer
has advised Employee to consult with an attorney concerning this Agreement and Release; (h) Employee freely and voluntarily enters
into this Agreement and Release; and (i) no fact, evidence, event, or transaction currently unknown to Employee but which may hereafter
become known to Employee shall affect in any manner the final and unconditional nature of the release stated above.


 


16.         Employee
acknowledges that Employee has been provided with the following information in writing: a) any class, unit, or group of individuals
covered by this employment termination program, any eligibility factors for this program, and any time limits applicable to the
program; and b) the job titles and ages of all individuals eligible or selected for the program, and the ages of all individuals
in the same job classification or organizational unit who are not eligible or selected for the program.


 


17.         This
Agreement and Release shall become effective and enforceable on the eighth (8th) day following execution hereof by Employee unless
Employee revokes it by so advising Employer in writing before the end of the seventh (7th) day after its execution by Employee.


 




    	 



    	 



    

 


18.         This
Agreement and Release shall be governed by and construed in accordance with the laws of the State of New York.


 


19.         Any
notice or communication required or permitted to be given hereunder shall be in writing and deemed duly served on and given (i)
when delivered personally; (ii) three (3) business days after having been sent by registered or certified mail, return receipt
requested, postage prepaid; (iii) upon delivery by fax with written facsimile confirmation; or (iv) one (1) business day after
deposit with a commercial overnight carrier, with written verification of receipt. Such notices shall be in writing and delivered
to the address set forth on the signature page hereto, or to such other notice address as the other Party has provided by written
notice.


 


20.         The
waiver by any party of a breach of any provision herein shall not operate or be construed as a waiver of any subsequent breach
by any party.


 


21.         The
provisions of this agreement are severable. Should any provision herein be declared invalid by a court of competent jurisdiction,
the remainder of the agreement will continue in force, and the parties agree to renegotiate the invalidated provision in good faith
to accomplish its objective to the extent permitted by law.


 


22.         This
Agreement and Release may be signed in counterparts, and each counterpart shall be considered an original agreement for all purposes.


 


IN WITNESS WHEREOF,
the Parties have hereunto set their hands.


 


	[EMPLOYEE NAME]	 	For Liquid Holdings Group, LLC
	 	 	 
	 	 	 
	Date	 	Date


 


Address for Notices


 


	As to Employee:	As to Employer:
	[Name]	Liquid Holdings Group, LLC
	[Address]	Attn: Contracts Administration
	Fax:	800 Third Ave., 39th Floor
	 	New York, NY 10022
	 	Fax: (212) 293-2472


 




    	 



    	 



    

 


EXHIBIT B 


 


AT WILL EMPLOYMENT, CONFIDENTIAL INFORMATION,
INVENTION ASSIGNMENT AND ARBITRATION AGREEMENT


 




    	 



    	 



    

 





 


LIQUID HOLDINGS GROUP, LLC


 


AT WILL EMPLOYMENT, CONFIDENTIAL INFORMATION,


INVENTION ASSIGNMENT AND ARBITRATION
AGREEMENT


 


As a condition of my employment with Liquid
Holdings Group, LLC, its subsidiaries, affiliates, successors or assigns (together the “Company”), and in consideration
of my employment with the Company, my receipt of the compensation now and hereafter paid to me by the Company and the Company’s
agreement in the first sentence of Section 2(a) of this Agreement, I agree to the following:


 


1.   At-Will
Employment. I UNDERSTAND AND ACKNOWLEDGE THAT, UNLESS OTHERWISE EXPLICITLY STATED IN A VALIDLY EXECUTED AND ENFORCEABLE WRITTEN
EMPLOYMENT AGREEMENT BETWEEN THE COMPANY AND ME, MY EMPLOYMENT WITH THE COMPANY IS FOR AN UNSPECIFIED DURATION AND CONSTITUTES
“AT-WILL” EMPLOYMENT AND THAT THIS EMPLOYMENT RELATIONSHIP MAY BE TERMINATED AT ANY TIME, WITH OR WITHOUT GOOD CAUSE
OR FOR ANY OR NO CAUSE, AT THE OPTION EITHER OF THE COMPANY OR MYSELF, WITH OR WITHOUT NOTICE.


 


2.   Confidential
Information.


 


(a)   Company
Information. The Company agrees to provide or deliver to me or permit me to acquire, be exposed to, and/or have access to Confidential
Information (as defined below) during my term of employment. I agree at all times during the term of my employment and thereafter,
to hold in strictest confidence, and not to use, except for the benefit of the Company, or to disclose to any person, firm, corporation
or other entity without the Company’s written authorization, any Confidential Information of the Company, except under a
non-disclosure agreement duly authorized and executed by the Company. I understand that “Confidential Information”
means any non-public information that relates to the actual or anticipated business or research and development of the Company,
proprietary information, technical data, trade secrets or know-how, including, but not limited to, research, product plans or other
information regarding Company’s products or services and markets therefor, suppliers, customer lists and customers (including,
but not limited to, customers of the Company on whom I called or with whom I became acquainted during the term of my employment),
software, developments, inventions, processes, formulas, technology, designs, drawings, engineering, hardware configuration information,
marketing, sales channels, budgets, finances or other business information disclosed or made available to me by the Company, either
directly or indirectly, in writing, orally, or by drawings or observation of parts or equipment, or created by me during my period
of employment, whether or not during working hours. I further understand that Confidential Information does not include any of
the foregoing items which have become publicly known and made generally available through no wrongful act of mine or of others
who were under confidentiality obligations as to the item or items involved.


 


(b)   Former
Employer Information. I agree that I will not, during my employment with the Company, improperly use or disclose any confidential
information or trade secrets, if any, of any former or concurrent employer or other person or entity to whom or which I have an
obligation of confidentiality and that I will not bring onto the premises of the Company any unpublished document or proprietary
information belonging to any such employer, person or entity unless consented to in writing by such employer, person or entity.
I will use in the performance of my duties to the Company only information which is generally known and used by persons with training
and experience comparable to my own, which is common knowledge in the industry or otherwise legally in the public domain, or which
is otherwise provided or developed by the Company. I further agree that I will not disclose to the Company, or induce the Company
to use, any inventions, confidential, or proprietary information or material belonging to any previous employer or any other person
or entity.


 




    	-2-



    	 



    

 


(c)   Third
Party Information. I recognize that the Company has received and in the future will receive from third parties their confidential
or proprietary information subject to a duty on the Company’s part to maintain the confidentiality of such information and
to use it only for certain limited purposes. I agree to hold all such confidential or proprietary information in the strictest
confidence and not to disclose it to any person, firm or corporation or to use it except as necessary in carrying out my work for
the Company consistent with the Company’s agreement with such third party.


 


(d)   Legally
Required Disclosure. I understand that I will not be in violation of this Agreement if I disclose any Confidential Information
or third-party confidential or proprietary information in response to legal process, court order or other legal requirement to
disclose. However, I agree to give the Company prior notice, to the extent reasonably practicable, of any such legally required
disclosure and to cooperate with all reasonable efforts of the Company (at its expense) to resist or limit the required disclosure.


 


3.   Inventions.


 


(a)   Inventions
Retained and Licensed. I have attached hereto, as Exhibit A, a list describing with particularity all inventions,
original works of authorship, developments, improvements, and trade secrets which were made by me prior to my employment with the
Company (collectively referred to as “Prior Inventions”), which belong solely to me or belong to me jointly
with another, which relate in any way to the Company’s current or proposed businesses, products or research and development,
and which are not assigned to the Company hereunder; or, if no such list is attached, I represent that there are no such Prior
Inventions. If disclosure of any Prior Invention would cause me to violate any prior confidentiality agreement, I understand that
I am not to list such Prior Inventions in Agreement, but am only to disclose a cursory name for each such Prior Invention,
a listing of the party or parties to whom or which it belongs and the fact that full disclosure as to such Prior Invention has
not been made for that reason. If in the course of my employment with the Company, I incorporate into a Company product, process
or service a Prior Invention owned by me or in which I have an interest, I hereby grant to the Company a nonexclusive, royalty-free,
fully paid-up, irrevocable, perpetual, worldwide license (with the right to sublicense) to make, have made, copy, modify, use,
make derivative works of, sell and otherwise distribute such Prior Invention as part of or in connection with such product, process
or service, and to practice any method related thereto. However, I further agree that I will not incorporate, or permit to be incorporated,
any Prior Invention without the Company’s prior written consent.


 


(b)   Assignment
of Inventions. I agree that I will promptly make full written disclosure to the Company, will hold in trust for the sole right
and benefit of the Company, and hereby assign to the Company or its designee and hereby agree hereafter to assign to the Company
or its designee as necessary, all my right, title, and interest throughout the world in and to any and all inventions, original
works of authorship, developments, concepts, know-how, improvements, designs, discoveries, ideas, trademarks or trade secrets,
whether or not patentable or registrable under copyright or similar laws, that relate in any way to the Company’s current
or proposed businesses, products or research and development and that I may solely or jointly conceive or develop or reduce to
practice, or cause to be conceived or developed or reduced to practice, during the period of time I am in the employ of the Company
(collectively referred to as “Inventions”). I further acknowledge that all inventions, original works of authorship,
developments, concepts, know-how or trade secrets which are made by me (solely or jointly with others) within the scope of and
during the period of my employment with the Company are “works made for hire,” as that term is defined in the United
States Copyright Act (to the greatest extent permitted by applicable law) and are compensated by my salary. I understand and agree
that the decision whether or not to commercialize or market any invention developed by me solely or jointly with others is within
the Company’s sole discretion and for the Company’s sole benefit and that no royalty will be due to me as a result
of the Company’s efforts to commercialize or market any such invention.


 




    	-3-



    	 



    

 


(c)   Inventions
Assigned to the United States. I agree to assign to the United States government all my right, title, and interest in and to
any and all Inventions whenever such full title is required to be in the United States by a contract between the Company and the
United States or any of its agencies.


 


(d)   Maintenance
of Records. I agree to keep and maintain adequate and current written records of all Inventions made by me (solely or jointly
with others) during the term of my employment with the Company. The records will be in the form of notes, sketches, drawings, electronic
data or recordings, and any other format. The records will be available to and remain the sole property of the Company at all times.
I agree not to remove such records from the Company’s place of business except as expressly permitted by Company policy,
which may, from time to time, be revised at the sole election of the Company for the purpose of furthering the Company’s
business.


 


(e)   Patent
and Copyright Registrations. I agree to assist the Company, or its designee, at the Company’s expense, in every proper
way to secure the Company’s rights in the Inventions and any copyrights, patents, mask work rights or other intellectual
property rights relating thereto in any and all countries, including (without limitation) the disclosure to the Company of all
pertinent information and data with respect thereto, the execution of all applications, specifications, oaths, assignments, recordations,
and all other instruments which the Company shall deem necessary in order to apply for, obtain, maintain and transfer such rights
and in order to assign and convey to the Company, its successors, assigns, and nominees the sole and exclusive rights, title and
interest in and to such Inventions, and any copyrights, patents, mask work rights or other intellectual property rights relating
thereto. I further agree that my obligation to execute or cause to be executed, when it is in my power to do so, any such instrument
or papers shall continue after the termination of this Agreement. If the Company is unable because of my mental or physical incapacity
or for any other reason to secure my signature to apply for or to pursue any application for any United States or foreign patents
or copyright registrations covering Inventions or original works of authorship assigned to the Company as above, then I hereby
irrevocably designate and appoint the Company and its duly authorized officers and agents as my agent and attorney in fact, to
act for and in my behalf and stead to execute and file any such applications and to do all other lawfully permitted acts to further
the prosecution, issuance, maintenance or transfer of letters patent or copyright registrations thereon with the same legal force
and effect as if originally executed by me. I hereby waive and irrevocably quitclaim to the Company any and all claims, of any
nature whatsoever, which I now or hereafter have for the infringement of any and all proprietary rights assigned to the Company.


 


4.   Conflicting
Employment. I agree that, during the term of my employment with the Company, I will not engage in any other employment, occupation
or consulting directly related to the business in which the Company is now involved or becomes involved during the term of my employment,
nor will I engage in any other activities that conflict with my obligations to the Company, without the Company’s express
written consent.


 




    	-4-



    	 



    

 


5.   Returning
Company Documents. I agree that, at the time of leaving the employ of the Company, I will deliver to the Company (and will
not keep in my possession, recreate or deliver to anyone else) any and all devices, records, data, notes, reports, proposals, lists,
correspondence, specifications, drawings blueprints, sketches, materials, equipment, other documents or property, or reproductions
of any aforementioned items developed by me pursuant to my employment with the Company or otherwise belonging to the Company, its
successors or assigns, including, without limitation, all Inventions, Confidential Information and those records maintained pursuant
to Section 3.D above. In the event of the termination of my employment, I agree to sign and deliver the “Termination
Certification” attached hereto as Exhibit B.


 


6.   Notification
of New Employer. In the event that I leave the employ of the Company, I hereby grant consent to notification by the Company
to my new employer or any party with whom I maintain a consulting relationship about my rights and obligations under this Agreement.


 


7.   Solicitation
of Employees. I agree that during my employment with the Company and for a period of twelve (12) months immediately following
the termination of my relationship with the Company for any reason, whether with or without cause (or such longer period specified
in a validly executed and enforceable written employment agreement between the Company and me), I shall not either directly or
indirectly solicit, induce, recruit or encourage, other than by means of general advertising to the public, any of the Company’s
employees to leave their employment, or take away such employees, or attempt to solicit, induce, recruit, encourage or take away
employees of the Company, either for myself or for any other person or entity.


 


8.   Conflict
of Interest Guidelines. I agree to diligently adhere to the Conflict of Interest Guidelines attached as Exhibit C
hereto.


 


9.   Representations.
I agree to execute any proper oath or verify any proper document required to carry out the terms of this Agreement. I represent
that my performance of all the terms of this Agreement will not breach any agreement to keep in confidence proprietary information
acquired by me in confidence or in trust prior to my employment by the Company. I hereby represent and warrant that I have not
entered into, and I will not enter into, any oral or written agreement in conflict herewith.


 


10. Arbitration
and Equitable Relief.


 


(a)   Arbitration.
IN CONSIDERATION OF MY EMPLOYMENT WITH THE COMPANY, ITS PROMISE TO ARBITRATE ALL EMPLOYMENT-RELATED DISPUTES AND MY RECEIPT OF
THE COMPENSATION, PAY RAISES AND OTHER BENEFITS PAID TO ME BY THE COMPANY, AT PRESENT AND IN THE FUTURE, ANY CONTROVERSY OR CLAIM
ARISING OUT OF OR RELATING TO MY EMPLOYMENT WITH THE COMPANY, INCLUDING ANY BREACH OF THIS AGREEMENT SHALL BE SETTLED BY ARBITRATION
ADMINISTERED BY THE AMERICAN ARBITRATION ASSOCIATION (“AAA”) UNDER ITS NATIONAL RULES FOR THE RESOLUTION OF EMPLOYMENT
DISPUTES (“AAA NATIONAL RULES”) AND JUDGMENT UPON THE AWARD RENDERED BY THE ARBITRATOR(S) MAY BE ENTERED IN ANY COURT
HAVING JURISDICTION THEREOF.


 


(b)   Procedure.
I AGREE THAT THE NEUTRAL ARBITRATOR WILL BE SELECTED IN A MANNER CONSISTENT WITH THE AAA NATIONAL RULES. I AGREE THAT THE ARBITRATOR
SHALL HAVE THE POWER TO DECIDE ANY MOTIONS BROUGHT BY ANY PARTY TO THE ARBITRATION, INCLUDING MOTIONS FOR SUMMARY JUDGMENT AND/OR
ADJUDICATION AND MOTIONS TO DISMISS AND DEMURRERS, PRIOR TO ANY ARBITRATION HEARING. I ALSO AGREE THAT THE ARBITRATOR SHALL HAVE
THE POWER TO AWARD ANY REMEDIES, INCLUDING ATTORNEYS’ FEES AND COSTS, AVAILABLE UNDER APPLICABLE LAW. I UNDERSTAND THE COMPANY
WILL PAY FOR ANY ADMINISTRATIVE OR HEARING FEES CHARGED BY THE ARBITRATOR OR AAA EXCEPT THAT I SHALL PAY THE FIRST $200.00 OF ANY
FILING FEES ASSOCIATED WITH ANY ARBITRATION I INITIATE. I AGREE THAT THE ARBITRATOR SHALL ADMINISTER AND CONDUCT ANY ARBITRATION
IN A MANNER CONSISTENT WITH THE AAA NATIONAL RULES. I AGREE THAT THE DECISION OF THE ARBITRATOR SHALL BE IN WRITING.


 




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(c)   Remedy.
EXCEPT AS PROVIDED BY THE AAA NATIONAL RULES AND THIS AGREEMENT, IN PARTICULAR SECTION 10.D BELOW, ARBITRATION SHALL BE THE SOLE,
EXCLUSIVE AND FINAL REMEDY FOR ANY DISPUTE BETWEEN ME AND THE COMPANY. ACCORDINGLY, EXCEPT AS PROVIDED FOR BY THE AAA NATIONAL
RULES AND THIS AGREEMENT, NEITHER I NOR THE COMPANY WILL BE PERMITTED TO PURSUE COURT ACTION REGARDING CLAIMS THAT ARE SUBJECT
TO ARBITRATION. NOTWITHSTANDING, THE ARBITRATOR WILL NOT HAVE THE AUTHORITY TO DISREGARD OR REFUSE TO ENFORCE ANY LAWFUL COMPANY
POLICY, AND THE ARBITRATOR SHALL NOT ORDER OR REQUIRE THE COMPANY TO ADOPT A POLICY NOT OTHERWISE REQUIRED BY LAW WHICH THE COMPANY
HAS NOT ADOPTED.


 


(d)   Availability
of Injunctive Relief. IN ADDITION TO THE RIGHT UNDER THE AAA NATIONAL RULES TO PETITION THE COURT FOR PROVISIONAL RELIEF, I
AGREE THAT ANY PARTY MAY ALSO PETITION THE COURT FOR INJUNCTIVE RELIEF WHERE EITHER PARTY ALLEGES OR CLAIMS A VIOLATION OF THE
AT-WILL EMPLOYMENT, CONFIDENTIAL INFORMATION, INVENTION ASSIGNMENT AND ARBITRATION AGREEMENT BETWEEN ME AND THE COMPANY OR ANY
OTHER AGREEMENT REGARDING TRADE SECRETS, CONFIDENTIAL INFORMATION OR NONSOLICITATION. I UNDERSTAND THAT ANY BREACH OR THREATENED
BREACH OF SUCH AN AGREEMENT WILL CAUSE IRREPARABLE INJURY AND THAT MONEY DAMAGES WILL NOT PROVIDE AN ADEQUATE REMEDY THEREFOR.
IN THE EVENT EITHER PARTY SEEKS INJUNCTIVE RELIEF, THE PREVAILING PARTY SHALL BE ENTITLED TO RECOVER REASONABLE COSTS AND ATTORNEYS
FEES.


 


(e)   Administrative
Relief. I UNDERSTAND THAT THIS AGREEMENT DOES NOT PROHIBIT ME FROM PURSUING AN ADMINISTRATIVE CLAIM WITH A LOCAL, STATE OR
FEDERAL ADMINISTRATIVE BODY SUCH AS THE NEW YORK STATE DIVISION OF HUMAN RIGHTS, THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION OR
THE WORKERS’ COMPENSATION BOARD. THIS AGREEMENT DOES, HOWEVER, PRECLUDE ME FROM PURSUING COURT ACTION REGARDING ANY SUCH
CLAIM.


 


(f)    Voluntary
Nature of Agreement. I ACKNOWLEDGE AND AGREE THAT I AM EXECUTING THIS AGREEMENT VOLUNTARILY AND WITHOUT ANY DURESS OR UNDUE
INFLUENCE BY THE COMPANY OR ANYONE ELSE. I FURTHER ACKNOWLEDGE AND AGREE THAT I HAVE CAREFULLY READ THIS AGREEMENT AND THAT I HAVE
ASKED ANY QUESTIONS NEEDED FOR ME TO UNDERSTAND THE TERMS, CONSEQUENCES AND BINDING EFFECT OF THIS AGREEMENT AND FULLY UNDERSTAND
IT, INCLUDING THAT I AM WAIVING MY RIGHT TO A JURY TRIAL. FINALLY, I AGREE THAT I HAVE BEEN PROVIDED AN OPPORTUNITY
TO SEEK THE ADVICE OF AN ATTORNEY OF MY CHOICE BEFORE SIGNING THIS AGREEMENT. THIS AGREEMENT SHALL NOT BE CONSTRUED AGAINST ANY
PARTY BY REASON OF THE DRAFTING OR PREPARATION HEREOF.


 


11. General
Provisions.


 


(a)   Governing
Law; Consent to Personal Jurisdiction. This Agreement will be governed by the laws of the State of New York. I hereby
expressly consent to the personal jurisdiction of the state and federal courts located in New York County, New York for any lawsuit
filed there against me by the Company arising from or relating to this Agreement.


 


(b)   Entire
Agreement. This Agreement, together with the Amended and Restated Executive Employment Agreement, dated as of June 11, 2013,
between the Company and me (the “Employment Agreement”), sets forth the entire agreement and understanding between
the Company and me relating to the subject matter herein and supersedes all prior discussions or representations between us including,
but not limited to, any representations made during my interview(s) or relocation negotiations, whether written or oral. No modification
of or amendment to this Agreement, nor any waiver of any rights under this Agreement, will be effective unless in writing signed
by the Company and me. Any subsequent change or changes in my duties, obligations, rights salary or compensation will not affect
the validity or scope of this Agreement. In the event of any conflict between the terms of this Agreement and the terms of the
Employment Agreement, the terms of the Employment Agreement shall control.


 




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(c)   Severability.
If one or more of the provisions in this Agreement are deemed void by law, then a court having jurisdiction may reform such provisions
to make them valid and enforceable, and the remaining provisions will continue in full force and effect.


 


(d)   Successors
and Assigns. This Agreement will be binding upon my heirs, executors, administrators and other legal representatives and will
be for the benefit of the Company, its successors, and its assigns.


 


(e)   Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, and all of which together
shall constitute one and the same instrument. Faxed signatures to this Agreement shall be binding for all purposes.


 


(f)    Survival.
The provisions of this Agreement shall survive the termination my employment with the Company and the assignment of this Agreement
by the Company to any successor in interest or assignee.


 


(g)   Waiver.
No waiver by the Company of any breach of this Agreement shall be a waiver of any preceding or succeeding breach. No waiver by
the Company of any right under this Agreement shall be construed as a waiver that right in any other circumstance or of any other
right. The Company shall not be required to give notice to enforce strict adherence to all terms of this Agreement.


 


	Date:	 	 	 
	 	 	Signature
	 	 	 
	 	 	 
	 	 	Name of Employee (typed or printed)
	 	 	 
	Witness:	 	 	 
	 	 	 
	Date:	 	 	 


 


Accepted by the Company, and signed to indicate the Company’s
agreement stated in the first sentence of Section 2(a), this ____ day of __________________________.


 


	By:	 	 
	 	 	 
	Name:	 	 
	 	 	 
	Title: 	 	 


 




    	-7-



    	 



    

 


Exhibit A


 


LIST OF PRIOR INVENTIONS


AND ORIGINAL WORKS OF AUTHORSHIP


 


The following is a complete list of all
inventions or improvements relevant to the subject matter of my relationship with the Company that have been made or conceived
or first reduced to practice by me alone or jointly with other prior to my engagement by the Company:


  


	
        Title
	 	
        Date
	 	
        Identifying Number or Brief

        Description

	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 


 


___ No inventions or improvements


 


___ Additional Sheets Attached


  


	Signature of Employee:	 	 


 


	Print Name of Employee:	 	 


 


	Date:	 	 







 




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Exhibit B


 


LIQUID HOLDINGS GROUP, LLC


TERMINATION CERTIFICATION


 


1.   At
the commencement of, or during my employment with Liquid Holdings Group, LLC or one of its subsidiaries or affiliates (collectively,
“LHG”), I signed an At-Will Employment, Confidential Information, Invention Assignment and Arbitration Agreement (the
“Confidentiality Agreement”) (a copy of which has been received by me), and I have reread that Confidentiality Agreement.
I acknowledge that I have acquired knowledge of or had access to trade secrets and proprietary or confidential information of LHG
during my employment, including but not limited to the information in my notebooks and those items identified below.


 


12. I
have been advised and understand that my obligations under the Confidentiality Agreement, including, without limitation, my obligations
with respect to “ Confidential Information” (as defined in the Confidentiality Agreement), continue in full force and
effect notwithstanding the termination of my employment. More specifically, following termination of my employment with LHG, I
will hold in the strictest confidence and will not use, publish or disclose, or permit others to use, publish or disclose any Confidential
Information. For example, I will not impart Confidential Information to any of my subsequent employers. I have also been advised
and understand my obligations with respect to solicitation of employees. More specifically, I will not, for a period of twelve
(12) months (or such longer period as may be specified in any employment agreement between the Company and me), directly or indirectly
solicit, induce, recruit or encourage any of the employees of LHG to leave their employment.


 


13. I
have delivered to LHG all LHG property, including all documents and data of any nature pertaining to my work for LHG or the work
of any employees of LHG, or consultants to LHG. I will promptly deliver to LHG all such property which may hereafter be in my possession
or under my control or to which I may gain access. I do not have in my possession, nor have I failed to return, any diskettes,
tapes, drawings, blueprints, notes, memoranda, specifications, or other documents, or other media containing or disclosing any
of LHG’s trade secrets or proprietary or confidential information, or copies of any of the foregoing, or other materials,
tools, equipment, or other property belonging to LHG.


 


14. I
understand that the items listed above are not intended to be an exhaustive list of all LHG’s trade secrets or proprietary
or confidential information to which I have been exposed, but rather are intended to indicate generally the type of information
contemplated by the Agreement. I understand that the listing of certain areas of trade secrets, proprietary information and confidential
information should not be interpreted to mean that I am at liberty to use or disclose other unlisted trade secrets, proprietary
information or confidential information. I am fully aware of the critical trade secret status of information and activity surrounding
LHG’s development and marketing strategies and have actively participated in efforts to protect the trade secrets, proprietary
and confidential information of LHG.


 


15. I
further certify that I have complied with all the terms of the Confidentiality Agreement, including (without limitation) the reporting
of any Inventions (as defined therein), conceived or made by me (solely or jointly with others) covered by the Agreement.


 


I HAVE READ THE ABOVE AND UNDERSTAND ITS
CONTENTS.


 


	 	 	NOT FOR SIGNATURE
	Date	 	 Employee


 


Exit interview conducted by _______________________
on ______________


 




    	-9-



    	 



    

 


Exhibit C


 


LIQUID HOLDINGS GROUP, LLC


 


CONFLICT OF INTEREST GUIDELINES


 


It is the policy of Liquid Holdings Group,
LLC to conduct its affairs in strict compliance with the letter and spirit of the law and to adhere to the highest principles of
business ethics. Accordingly, all officers, employees and independent contractors must avoid activities that are in conflict, or
give the appearance of being in conflict, with these principles and with the interests of the Company. The following are potentially
compromising situations which must be avoided. Any exceptions must be reported to the CEO and written approval for continuation
must be obtained.


 


Revealing confidential information to outsiders
or misusing confidential information. Unauthorized divulging of information is a violation of this policy whether or not for personal
gain and whether or not harm to the Company is intended. (The At-Will Employment, Confidential Information, Invention Assignment
and Arbitration Agreement elaborates on this principle and is a binding agreement.)


 


Accepting or offering substantial gifts,
excessive entertainment, favors or payments which may be deemed to constitute undue influence or otherwise be improper or embarrassing
to the Company.


 


Participating in civic or professional organizations
that might involve divulging confidential information of the Company.


 


Initiating or approving personnel actions
affecting reward or punishment of employees or applicants where there is a family relationship or is or appears to be a personal
or social involvement.


 


Initiating or approving any form of personal
or social harassment of employees.


 


Investing or holding outside directorship
in suppliers, customers, or competing companies, including financial speculations, where such investment or directorship might
influence in any manner a decision or course of action of the Company.


 


Borrowing from or lending to employees,
customers or suppliers.


 


Acquiring real estate of interest to the
Company.


 


Improperly using or disclosing to the Company
any proprietary information or trade secrets of any former or concurrent employer or other person or entity with whom obligations
of confidentiality exist.


 


Unlawfully discussing prices, costs, customers,
sales or markets with competing companies or their employees.


 






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Making any unlawful agreement with distributors
with respect to prices.


 


Improperly using or authorizing the use
of any inventions which are the subject of patent claims of any other person or entity.


 


Engaging in any conduct which is not in
the best interest of the Company.


 


Each officer, employee and independent contractor
must take every necessary action to ensure compliance with these guidelines and to bring problem areas to the attention of higher
management for review. Violations of this conflict of interest policy may result in discharge without warning.


 




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