Document:

JMP Group LLC 2004 Equity Incentive Plan

 Exhibit 10.11 
 JMP GROUP LLC 
 2004 EQUITY INCENTIVE PLAN 
 (as amended and restated October 1, 2004) 
 1. Purposes of the Plan. The purposes of this Plan are to attract and retain the best available personnel, to provide additional incentives to Employees and Consultants and to promote the success of the
Company’s business. 
 2. Definitions. The following definitions shall apply as used herein and in the individual Award
Agreements except as defined otherwise in an individual Award Agreement. In the event a term is separately defined in an individual Award Agreement, such definition shall supercede the definition contained in this Section 2. 
 (a) “Administrator” means the Executive Committee or any of the Committees appointed to administer the Plan. 

(b) “Applicable Laws” means the legal requirements relating to the Plan and Awards under applicable provisions of
federal securities laws, state limited liability company, corporate and securities laws, the Code, the rules of any applicable stock exchange or national market system, and the rules of any non-U.S. jurisdiction applicable to Awards granted to
residents therein. 
 (c) “Assumed” means that pursuant to a Company Transaction either (i) the Award is
expressly affirmed by the Company or (ii) the contractual obligations represented by the Award are expressly assumed (and not simply by operation of law) by the successor entity or its Parent in connection with the Company Transaction with
appropriate adjustments to the number and type of securities of the successor entity or its Parent subject to the Award and the exercise or purchase price thereof which at least preserves the compensation element of the Award existing at the time of
the Company Transaction as determined in accordance with the instruments evidencing the agreement to assume the Award. 
 (d)
“Award” means the grant of an Option, UAR, Distribution Equivalent Right, Restricted Unit or Restricted Phantom Unit. 
 (e) “Award Agreement” means the written agreement evidencing the grant of an Award executed by the Company and the Grantee, including any amendments thereto. 
 (f) “Cause” means, with respect to the termination by the Company or a Related Entity of the Grantee’s Continuous
Service, that such termination is for “Cause” as such term is expressly defined in a then-effective written agreement between the Grantee and the Company or such Related Entity, or in the absence of such then-effective written agreement
and definition, is based on, in the determination of the Administrator, the Grantee’s: (i) performance of any act or failure to perform any act in bad faith and to the detriment of the Company or a Related Entity; (ii) dishonesty,
intentional misconduct or material breach of any agreement with the Company or a Related Entity; or (iii) commission of a crime involving dishonesty, breach of trust, or physical or emotional harm to any person. 
  

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 (g) “Class A Common Interests” means Class A Common Interests of
the Company as defined in the LLC Agreement. 
 (h) “Class B Common Interests” means Class B Common Interests
of the Company as defined in the LLC Agreement. 
 (i) “Closing Date” means the date of the closing of the
transactions contemplated by the Purchase/Placement Agreement dated August 12, 2004 among the Company and JMP Holdings Inc., on one hand, and JMP Securities LLC and Keefe, Bruyette & Woods, Inc., on the other as initial purchasers and
placement agents, together with any subsequent amendments or modifications thereto effected from time to time. 
 (j)
“Code” means the Internal Revenue Code of 1986, as amended. 
 (k) “Committee” means any
committee appointed by the Executive Committee to administer the Plan. 
 (l) “Common Stock” means the common
stock of the Corporate Successor. 
 (m) “Company” means JMP Group LLC, a Delaware limited liability company,
or any successor entity that adopts the Plan in connection with a Company Transaction. Upon Incorporation, all references in the Plan to the Company shall automatically be converted to the Corporate Successor. 
 (n) “Company Transaction” means any of the following transactions, provided, however, that (i) a Company Transaction
shall not include the Incorporation and (ii) the Administrator shall determine under parts (iv) and (v) whether multiple transactions are related, and its determination shall be final, binding and conclusive: 
 (i) a merger or consolidation in which the Company is not the surviving entity, except for a transaction the principal purpose of which is
to change the state in which the Company is organized; 
 (ii) the sale, transfer or other disposition of all or substantially
all of the assets of the Company; 
 (iii) the complete liquidation or dissolution of the Company; 
 (iv) any reverse merger or series of related transactions culminating in a reverse merger (including, but not limited to, a tender offer
followed by a reverse merger) in which the Company is the surviving entity but (A) the Units outstanding immediately prior to such merger are converted or exchanged by virtue of the merger into other property, whether in the form of securities,
cash or otherwise, or (B) in which securities possessing more than forty percent (40%) of the total combined voting power of the Company’s outstanding securities are transferred to a person or persons different from those who held
such securities immediately prior to such merger or the initial transaction culminating in such merger, but excluding any such transaction or series of related transactions that the Administrator determines shall not be a Company Transaction; or

  

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 (v) acquisition in a single or series of related transactions by any person or related
group of persons (other than the Company or by a Company-sponsored employee benefit plan) of beneficial ownership (within the meaning of Rule 13d-3 of the Exchange Act) of securities possessing more than forty percent (40%) of the total
combined voting power of the Company’s outstanding securities, but excluding any such transaction or series of related transactions that the Administrator determines shall not be a Company Transaction. 
 (o) “Consultant” means any person (other than an Employee) who is engaged by the Company or any Related Entity to render
consulting or advisory services to the Company or such Related Entity. 
 (p) “Continuous Service” means that
the provision of services to the Company or a Related Entity in any capacity of Employee or Consultant, is not interrupted or terminated. In jurisdictions requiring notice in advance of an effective termination as an Employee or Consultant,
Continuous Service shall be deemed terminated upon the actual cessation of providing services to the Company or a Related Entity notwithstanding any required notice period that must be fulfilled before a termination as an Employee or Consultant can
be effective under Applicable Laws. A Grantee’s Continuous Service shall be deemed to have terminated either upon an actual termination of Continuous Service or upon the entity for which the Grantee provides services ceasing to be a Related
Entity. Continuous Service shall not be considered interrupted in the case of (i) any approved leave of absence, (ii) transfers among the Company, any Related Entity, or any successor, in any capacity of Employee or Consultant, or
(iii) any change in status as long as the individual remains in the service of the Company or a Related Entity in any capacity of Employee or Consultant (except as otherwise provided in the Award Agreement). An approved leave of absence shall
include sick leave, military leave, or any other authorized personal leave. 
 (q) “Corporate Successor”
means the corporation which shall succeed to all or a substantial portion of the assets and liabilities of the Company upon the Incorporation, including any corporation that owns all the outstanding equity securities of the Company after the
consummation of a Corporate Conversion (as such term is defined in the LLC Agreement). 
 (r) “Disability”
means as defined under the long-term disability policy of the Company or the Related Entity to which the Grantee provides services regardless of whether the Grantee is covered by such policy. If the Company or the Related Entity to which the Grantee
provides service does not have a long-term disability plan in place, “Disability” means that a Grantee is unable to carry out the responsibilities and functions of the position held by the Grantee by reason of any medically determinable
physical or mental impairment for a period of not less than ninety (90) consecutive days. A Grantee will not be considered to have incurred a Disability unless he or she furnishes proof of such impairment sufficient to satisfy the Administrator
in its discretion. 
 (s) “Distribution Equivalent Right” means a right entitling the Grantee to compensation
measured by distributions paid with respect to Units. 
  

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 (t) “Employee” means any person, including an Officer, who is in the
employ of the Company or any Related Entity, subject to the control and direction of the Company or any Related Entity as to both the work to be performed and the manner and method of performance. In addition, Members who provide services to the
Company and members of a Related Entity who provide services to such Related Entity shall be considered Employees. 
 (u)
“Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 (v) “Executive
Committee” means the Executive Committee of the Company as described in the LLC Agreement. 
 (w) “Fair
Market Value” means, as of any date, the value of the Units or Common Stock determined as follows: 
 (i) If the
Common Stock is listed on one or more established stock exchanges or national market systems, including without limitation The Nasdaq National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its Fair Market Value shall be the
closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on the principal exchange or system on which the Common Stock is listed (as determined by the Administrator) on the date of determination (or, if no closing
sales price or closing bid was reported on that date, as applicable, on the last trading date such closing sales price or closing bid was reported), as reported in The Wall Street Journal or such other source as the Administrator deems reliable;

 (ii) If the Common Stock is regularly quoted on an automated quotation system (including the OTC Bulletin Board) or by a
recognized securities dealer, its Fair Market Value shall be the closing sales price for such stock as quoted on such system or by such securities dealer on the date of determination, but if selling prices are not reported, the Fair Market Value of
a share of Common Stock shall be the mean between the high bid and low asked prices for the Common Stock on the date of determination (or, if no such prices were reported on that date, on the last date such prices were reported), as reported in The
Wall Street Journal or such other source as the Administrator deems reliable; or 
 (iii) In the absence of an established
market for the Units or for the Common Stock of the type described in (i) and (ii), above, the Fair Market Value thereof shall be determined by the Administrator in good faith. 
 (x) “Grantee” means an Employee or Consultant who receives an Award under the Plan. 
 (y) “Incorporation” means the incorporation of the Company which shall be effected through the conversion (whether
through a merger, acquisition, exchange of equity resulting in the Company becoming a wholly-owned subsidiary of a corporation, or other transaction resulting in a corporation succeeding to all of or a substantial portion of the assets and
liabilities of the Company) of all the outstanding Units into shares of one or more series of Common Stock or preferred stock of the Corporate Successor as determined by the Executive Committee. The term Incorporation includes the Corporate
Conversion (as such term is defined in the LLC Agreement). 
  

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 (z) “LLC Agreement” means the Third Amended and Restated Limited
Liability Company Agreement of JMP Group LLC, dated as of August 18, 2004 together with any subsequent amendments or modifications thereto effected from time to time. 
 (aa) “Member” means a member of the Company as described in the LLC Agreement. 
 (bb) “Officer” means a person who is an officer of the Company or a Related Entity within the meaning of Section 16
of the Exchange Act and the rules and regulations promulgated thereunder. 
 (cc) “Option” means an option to
purchase Units pursuant to an Award Agreement granted under the Plan. 
 (dd) “Parent” means any entity
(other than the employer entity) in an unbroken chain of entities ending with the employer entity if, at the time of the granting of an Award, each of the entities other than the employer entity owns securities possessing 50% or more of the total
combined voting power of all classes of securities in one of the other entities in such chain. 
 (ee) “Plan”
means this 2004 Equity Incentive Plan. 
 (ff) “Post-Termination Exercise Period” means a period of no less
than three (3) months commencing on the date of termination (other than termination for Cause) of the Grantee’s Continuous Service, or such longer period as may be applicable upon death or Disability; provided, however, that if the
Grantee’s Continuous Service is terminated prior to the Incorporation for any reason, including, but not limited to, voluntary resignation, termination without Cause, death or Disability and unless otherwise determined by the Administrator,
there shall be no Post-Termination Exercise Period and each Award of such Grantee (including the vested portions of such Options) shall terminate concurrently with the termination of the Grantee’s Continuous Service. 
 (gg) “Registration Date” means the first to occur of (i) the closing of the first sale to the general public
pursuant to a registration statement filed with and declared effective by the Securities and Exchange Commission under the Securities Act of 1933, as amended, of (A) the Common Stock or (B) the same class of securities of a successor
corporation (or its Parent) issued pursuant to a Company Transaction in exchange for or in substitution of the Units or Common Stock; and (ii) in the event of a Company Transaction, the date of the consummation of the Company Transaction if the
same class of securities of the successor corporation (or its Parent) issuable in such Company Transaction shall have been sold to the general public pursuant to a registration statement filed with and declared effective by the Securities and
Exchange Commission under the Securities Act of 1933, as amended, on or prior to the date of consummation of such Company Transaction. 
 (hh) “Related Entity” means any Parent or Subsidiary of the Company and any business, corporation, partnership, limited liability company or other entity in which the Company or a Parent or a
Subsidiary of the Company holds a substantial ownership interest, directly or indirectly. 
  

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 (ii) “Replaced” means that pursuant to a Company Transaction the
Award is replaced with a comparable equity award or a cash incentive program of the Company, the successor entity (if applicable) or Parent of either of them which preserves the compensation element of such Award existing at the time of the Company
Transaction and provides for subsequent payout in accordance with the same (or a more favorable) vesting schedule applicable to such Award. The determination of Award comparability shall be made by the Administrator and its determination shall be
final, binding and conclusive. 
 (jj) “Restricted Phantom Units” means an Award which may be earned in whole
or in part upon the passage of time or the attainment of performance criteria established by the Administrator and which may be settled for cash, Units or other securities or a combination of cash, Units or other securities as established by the
Administrator. 
 (kk) “Restricted Units” means Units issued under the Plan to the Grantee for such
consideration, if any, and subject to such restrictions on transfer, rights of first refusal, repurchase provisions, forfeiture provisions, and other terms and conditions as established by the Administrator. 
 (ll) “Rule 16b-3” means Rule 16b-3 promulgated under the Exchange Act or any successor thereto. 
 (mm) “Share” means a share of the Common Stock. 
 (nn) “Subsidiary” means any entity (other than the employer entity) in an unbroken chain of entities beginning with the
employer entity if, at the time of the granting of an Award, each of the entities other than the last entity in the unbroken chain owns securities possessing 50% or more of the total combined voting power of all classes of securities in one of the
other entities in such chain. 
 (oo) “UAR” means a unit appreciation right entitling the Grantee to Units or
cash compensation, as established by the Administrator, measured by appreciation in the value of a Unit. 
 (pp)
“Unit” means, for the purposes of this Plan, a unit of Class B Common Interests which possesses a percentage interest in the Company equal to 0.0000069% of the combined Class A Common Interests and Class B Common Interests as
of the Closing Date. The economic interest of a Unit is subject to, and will be adjusted accordingly for, the dilution and accretion of the underlying Class B Common Interests pursuant to the LLC Agreement. References to Units shall be deemed to
refer to Shares upon an Incorporation. 
 3. Units Subject to the Plan. 
 (a) Subject to the provisions of Section 10 below, the maximum aggregate number of Units which may be issued pursuant to all Awards
is 2,960,000 Units. Initially, 1,480,000 Units of the total will be reserved for issuance as annual bonus compensation in the form of Restricted Units, with such number of Units so reserved for issuance as Restricted Units subject to increase or
decrease by the Administrator in its sole discretion. 
  

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 (b) Any Units covered by an Award (or portion of an Award) which is forfeited, canceled
or expires (whether voluntarily or involuntarily) shall be deemed not to have been issued for purposes of determining the maximum aggregate number of Units which may be issued under the Plan. Units that actually have been issued under the Plan
pursuant to an Award shall not be returned to the Plan and shall not become available for future issuance under the Plan, except that if unvested Units are forfeited or repurchased, such Units shall become available for future grant under the Plan.
To the extent not prohibited by Applicable Law, any Units covered by an Award which are surrendered (i) in payment of the Award exercise or purchase price or (ii) in satisfaction of tax withholding obligations incident to the exercise or
vesting of an Award shall be deemed not to have been issued for purposes of determining the maximum number of Units which may be issued pursuant to all Awards under the Plan, unless otherwise determined by the Administrator. Class B Common Interests
of the Company that are repurchased by the Company may be added by the Executive Committee to the maximum aggregate number of Units which may be issued pursuant to all Awards. 
 (c) In the event of an Incorporation, the Units shall be converted into shares of Common Stock. The number of Units of Common Stock
issuable under the Plan and under each outstanding Award immediately after the Incorporation shall be determined by multiplying the number of Units issuable under the Plan and under each outstanding Award respectively immediately prior to the
Incorporation by the ratio in effect for the conversion or exchange of Units into shares of Common Stock in the Incorporation and rounded to the nearest whole Share, and the exercise or purchase price payable per Unit under each outstanding Award
immediately prior to the Incorporation shall be divided by such conversion or exchange ratio and rounded to the nearest full cent to determine the exercise price payable per share of Common Stock under the adjusted Award immediately after the
Incorporation. For purposes of rounding, (i) any fractional share greater than or equal to 0.50 shall be rounded up to the nearest whole share and any fractional share less than 0.50 shall be rounded down to the nearest whole share and
(ii) any fraction of a cent greater than or equal to $0.0050 shall be rounded up to the nearest whole cent and any fraction of a cent less than 0.0050 shall be rounded down to the nearest whole cent. 
 4. Administration of the Plan. 
 (a) Plan Administrator. The Plan shall be administered by (i) the Executive Committee or (ii) a Committee designated by the Executive Committee, which Committee shall be constituted in such a manner
as to satisfy the Applicable Laws. 
 (b) Multiple Administrative Bodies. The Plan may be administered by different
bodies with respect to Officers, Consultants, and Employees. 
 (c) Powers of the Administrator. Subject to Applicable
Laws and the provisions of the Plan (including any other powers given to the Administrator hereunder), and except as otherwise provided by the Executive Committee, the Administrator shall have the authority, in its discretion: 
 (i) to select the Employees and Consultants to whom Awards may be granted from time to time hereunder; 
  

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 (ii) to determine whether and to what extent Awards are granted hereunder; 
 (iii) to determine the number of Units or the amount of other consideration to be covered by each Award granted hereunder; 
 (iv) to approve forms of Award Agreements for use under the Plan; 
 (v) to determine the terms and conditions of any Award granted hereunder; 
 (vi) to establish additional terms, conditions, rules or procedures to accommodate the rules or laws of applicable non-U.S. jurisdictions
and to afford Grantees favorable treatment under such rules or laws; provided, however, that no Award shall be granted under any such additional terms, conditions, rules or procedures with terms or conditions which are inconsistent with the
provisions of the Plan; 
 (vii) to amend the terms of any outstanding Award granted under the Plan, provided that any
amendment that would adversely affect the Grantee’s rights under an outstanding Award shall not be made without the Grantee’s written consent; 
 (viii) to construe and interpret the terms of the Plan and Awards, including without limitation, any notice of award or Award Agreement, granted pursuant to the Plan; and 
 (ix) to take such other action, not inconsistent with the terms of the Plan, as the Administrator deems appropriate. 
 (d) Indemnification. In addition to such other rights of indemnification as they may have as members of the Executive Committee or
as Officers or Employees of the Company or a Related Entity, members of the Executive Committee and any Officers or Employees of the Company or a Related Entity to whom authority to act for the Executive Committee, the Administrator or the Company
is delegated shall be defended and indemnified by the Company to the extent permitted by law on an after-tax basis against all reasonable expenses, including attorneys’ fees, actually and necessarily incurred in connection with the defense of
any claim, investigation, action, suit or proceeding, or in connection with any appeal therein, to which they or any of them may be a party by reason of any action taken or failure to act under or in connection with the Plan, or any Award granted
hereunder, and against all amounts paid by them in settlement thereof (provided such settlement is approved by the Company) or paid by them in satisfaction of a judgment in any such claim, investigation, action, suit or proceeding, except in
relation to matters as to which it shall be adjudged in such claim, investigation, action, suit or proceeding that such person is liable for gross negligence, bad faith or intentional misconduct; provided, however, that within thirty (30) days
after the institution of such claim, investigation, action, suit or proceeding, such person shall offer to the Company, in writing, the opportunity at the Company’s expense to defend the same. 
 5. Eligibility. Awards may be granted to Employees and Consultants. An Employee or Consultant who has been granted an Award may, if otherwise
eligible, be granted additional Awards. Awards may be granted to such Employees or Consultants who are residing in non-U.S. jurisdictions as the Administrator may determine from time to time. 
  

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 6. Terms and Conditions of Awards. 
 (a) Types of Awards. The Administrator is authorized under the Plan to award any type of arrangement to an Employee or Consultant
that is not inconsistent with the provisions of the Plan and that by its terms involves or might involve the issuance of (i) Units, (ii) cash or (iii) an Option, a UAR, or similar right with a fixed or variable price related to the
Fair Market Value of the Units and with an exercise or conversion privilege related to the passage of time, the occurrence of one or more events, or the satisfaction of performance criteria or other conditions. Such awards include, without
limitation, Options, UARs, sales or bonuses of Restricted Units, Restricted Phantom Units or Distribution Equivalent Rights, and an Award may consist of one such security or benefit, or two (2) or more of them in any combination or alternative.

 (b) Designation of Award. Each Award shall be designated in the Award Agreement. 
 (c) Conditions of Award. Subject to the terms of the Plan, the Administrator shall determine the provisions, terms, and conditions
of each Award including, but not limited to, the Award vesting schedule, repurchase provisions, rights of first refusal, forfeiture provisions, form of payment upon settlement of the Award, payment contingencies, and satisfaction of any performance
criteria. The performance criteria established by the Administrator may be based on any measure of performance selected by the Administrator. Partial achievement of the specified criteria may result in a payment or vesting corresponding to the
degree of achievement as specified in the Award Agreement. 
 (d) Acquisitions and Other Transactions. The
Administrator may issue Awards under the Plan in settlement, assumption or substitution for, outstanding awards or obligations to grant future awards in connection with the Company or a Related Entity acquiring another entity, an interest in another
entity or an additional interest in a Related Entity whether by merger, stock purchase, asset purchase or other form of transaction. 
 (e) Separate Programs. The Administrator may establish one or more separate programs under the Plan for the purpose of issuing particular forms of Awards to one or more classes of Grantees on such terms and conditions as determined
by the Administrator from time to time.  
 (f) Term of Award. The term of each Award shall be the term stated
in the Award Agreement. 
 (g) Transferability of Awards. Awards shall be transferable by will, by the laws of descent
and distribution, or to the extent and in the manner authorized by the Administrator. In addition, the Grantee may designate a beneficiary of the Grantee’s Award in the event of the Grantee’s death on a beneficiary designation form
provided by the Administrator. 
  

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 (h) Time of Granting Awards. The date of grant of an Award shall for all purposes
be the date on which the Administrator makes the determination to grant such Award, or such other later date as is determined by the Administrator. 
 7. Award Exercise or Purchase Price, Consideration and Taxes. 
 (a) Exercise or Purchase Price. The
exercise or purchase price, if any, for an Award shall be as follows: 
 (i) In the case of an Option, the per Unit exercise
price shall be not less than eighty-five percent (85%) of the Fair Market Value per Unit on the date of grant unless otherwise determined by the Administrator. 
 (ii) In the case of other Awards, such price as is determined by the Administrator. 
 (iii) Notwithstanding the foregoing provisions of this Section 7(a), in the case of an Award issued pursuant to Section 6(d),
above, the exercise or purchase price for the Award shall be determined in accordance with the provisions of the relevant instrument evidencing the agreement to issue such Award. 
 (b) Consideration. Subject to Applicable Laws, the consideration to be paid for the Units to be issued upon exercise or purchase of
an Award including the method of payment, shall be determined by the Administrator. In addition to any other types of consideration the Administrator may determine, the Administrator is authorized to accept as consideration for Units issued under
the Plan the following: 
 (i) cash; 
 (ii) check; 
 (iii) delivery of a Grantee’s promissory note with such recourse, interest, security, and redemption provisions as the Administrator determines as appropriate (but only to the extent that the acceptance or terms of the promissory note
would not violate an Applicable Law); 
 (iv) surrender of Units or delivery of a properly executed form of attestation of
ownership of Units as the Administrator may require which have a Fair Market Value on the date of surrender or attestation equal to the aggregate exercise price of the Units as to which said Award shall be exercised, provided, however, that Units
acquired under the Plan or any other equity compensation plan or agreement of the Company must have been held by the Grantee for a period of more than six (6) months (and not used for another Award exercise by attestation during such period);

 (v) with respect to Options, if the exercise occurs on or after the Registration Date, payment through a broker-dealer sale
and remittance procedure pursuant to which the Grantee (A) shall provide written instructions to a Company designated brokerage firm to effect the immediate sale of some or all of the purchased Shares and remit to the 

  

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Company sufficient funds to cover the aggregate exercise price payable for the purchased Shares and (B) shall provide written directives to the Company
to deliver the certificates for the purchased Shares directly to such brokerage firm in order to complete the sale transaction; or 
 (vi) any combination of the foregoing methods of payment. 
 The Administrator may at any time or from time to time, by adoption of
or by amendment to the standard forms of Award Agreement described in Section 4(c)(iv), or by other means, grant Awards which do not permit all of the foregoing forms of consideration to be used in payment for the Shares or which otherwise
restrict one or more forms of consideration. 
 (c) Taxes. No Units shall be delivered under the Plan to any Grantee or
other person until such Grantee or other person has made arrangements acceptable to the Administrator for the satisfaction of any non-U.S., federal, state, or local income and employment tax withholding obligations, including, without limitation,
obligations incident to the receipt of Units. Upon exercise or vesting of an Award the Company shall withhold or collect from the Grantee an amount sufficient to satisfy such tax obligations, including, but not limited to, by surrender of the whole
number of Units covered by the Award sufficient to satisfy the minimum applicable tax withholding obligations incident to the exercise or vesting of an Award. 
 8. Procedure for Exercise; Rights as a Member. 
 (a) Any Award granted hereunder shall
be exercisable at such times and under such conditions as determined by the Administrator under the terms of the Plan and specified in the Award Agreement. Notwithstanding the foregoing, Options may not be exercised prior to the Incorporation unless
otherwise determined by the Administrator. 
 (b) An Award shall be deemed to be exercised when written notice of such
exercise has been given to the Company in accordance with the terms of the Award by the person entitled to exercise the Award and full payment for the Units with respect to which the Award is exercised has been made, including, to the extent
selected, use of the broker-dealer sale and remittance procedure to pay the purchase price as provided in Section 7(b)(v). 
 9.
Conditions Upon Issuance of Units. 
 (a) Units shall not be issued pursuant to the exercise of an Award unless the
exercise of such Award and the issuance and delivery of such Units pursuant thereto shall comply with all Applicable Laws, and shall be further subject to the approval of counsel for the Company with respect to such compliance. 
 (b) As a condition to the exercise of an Award, the Company may require the person exercising such Award to represent and warrant at the
time of any such exercise that the Units are being purchased only for investment and without any present intention to sell or distribute such Units if, in the opinion of counsel for the Company, such a representation is required by any Applicable
Laws. 
  

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 (c) As a condition to the exercise of an Award, the Company may require the person
exercising such Award to execute and deliver a signature page to, and agree to comply with, the provisions of the LLC Agreement and to make such representations and warranties contained in the LLC Agreement that are required of Members of the
Company. 
 10. Changes in Units. Subject to any required action by the Members of the Company, the number of Units covered by each
outstanding Award, and the number of Units which have been authorized for issuance under the Plan but as to which no Awards have yet been granted or which have been returned to the Plan, the exercise or purchase price of each such outstanding Award,
as well as any other terms that the Executive Committee determines require adjustment shall be proportionately adjusted for (i) any increase or decrease in the number of issued Units resulting from a Unit split, reverse Unit split, Unit
distribution, combination or reclassification of the Units or similar event affecting the Units, (ii) any other increase or decrease in the number of issued Units effected without receipt of consideration by the Company, or (iii) as the
Executive Committee may determine in its discretion, any other transaction with respect to Units including a merger, consolidation, acquisition of property or Units, separation (including a spin-off or other distribution of Units or property),
reorganization, liquidation (whether partial or complete) or any similar transaction; provided, however that conversion of any convertible securities of the Company shall not be deemed to have been “effected without receipt of
consideration.” Such adjustment shall be made by the Executive Committee and its determination shall be final, binding and conclusive. Except as the Executive Committee determines, no issuance by the Company of units of any class, or securities
convertible into units of any class, shall affect, and no adjustment by reason hereof shall be made with respect to, the number or price of Units subject to an Award; provided, however, that the percentage of Class B Common Interests underlying the
Units shall be adjusted for any increase or decrease in the Class B Common Interests issued or repurchased by the Company and no action by the Administrator or the Executive Committee will be required for any such adjustment. 
 11. Company Transactions. 
 (a) Termination of Award to Extent Not Assumed in Company Transaction. Effective upon the consummation of a Company Transaction, all outstanding Awards under the Plan shall terminate. However, all such Awards shall not terminate to
the extent they are Assumed in connection with the Company Transaction. 
 (a) Acceleration of Award Upon Company
Transaction. Except as provided otherwise in an individual Award Agreement, in the event of a Company Transaction and: 
 (i) for the portion of each Award that is Assumed or Replaced, then such Award (if Assumed), the replacement Award (if Replaced), or the cash incentive program (if Replaced) automatically shall become fully vested, exercisable and payable
and be released from any repurchase or forfeiture rights (other than repurchase rights exercisable at Fair Market Value) for all of the Units at the time represented by such Assumed or Replaced portion of the Award, immediately upon termination of
the Grantee’s Continuous Service if such Continuous Service is terminated by the successor company or the Company without Cause within twelve (12) months after the Company Transaction; and 
  

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 (ii) for the portion of each Award that is neither Assumed nor Replaced, such portion of
the Award shall automatically become fully vested and exercisable and be released from any repurchase or forfeiture rights (other than repurchase rights exercisable at Fair Market Value) for all of the Units at the time represented by such portion
of the Award, immediately prior to the specified effective date of such Company Transaction, provided that the Grantee’s Continuous Service has not terminated prior to such date. The portion of the Award that is not Assumed shall terminate
under subsection (a) of this Section 11 to the extent not exercised prior to the consummation of such Company Transaction. 
 12.
Effective Date and Term of Plan. The Plan shall become effective upon its adoption by the Executive Committee. It shall continue in effect for a term of ten (10) years unless sooner terminated. 
 13. Amendment, Suspension or Termination of the Plan. 
 (a) The Executive Committee may at any time amend, suspend or terminate the Plan. To the extent necessary to comply with Applicable Laws,
the Company shall obtain Member approval of any Plan amendment in such a manner and to such a degree as required. 
 (b) No
Award may be granted during any suspension of the Plan or after termination of the Plan. 
 (c) No suspension or termination
of the Plan (including termination of the Plan under Section 12, above) shall adversely affect any rights under Awards already granted to a Grantee. 
 (d) Upon the Incorporation, all references to the number of Units issued or issuable under the Plan shall be adjusted to reflect the conversion or exchange ratio in effect for the conversion or exchange of Units into
shares of Common Stock or a class of preferred stock in consummation of the Incorporation and rounded to the nearest whole share, and the exercise price or purchase price per Unit under any outstanding Award immediately prior to the Incorporation
shall be divided by such conversion or exchange ratio and rounded to the nearest full cent to determine the exercise price or purchase price per share of Common Stock or preferred stock subject to the Award immediately after the Incorporation. Upon
the Incorporation, all references in the Plan to Units shall automatically be converted into references to the shares of Common Stock or preferred stock into which the Units are converted and all references to the Company shall automatically be
converted into references to the Corporate Successor. 
 14. No Effect on Terms of Employment/Consulting Relationship. The Plan shall
not confer upon any Grantee any right with respect to the Grantee’s Continuous Service, nor shall it interfere in any way with his or her right or the right of the Company or any Related Entity to terminate the Grantee’s Continuous Service
at any time, with or without Cause, and with or without notice. The ability of the Company or any Related Entity to terminate the employment of a Grantee who is employed at will is in no way affected by its determination that the Grantee’s
Continuous Service has been terminated for Cause for the purposes of this Plan. 
  

 13 

 15. No Effect on Retirement and Other Benefit Plans. Except as specifically provided in a
retirement or other benefit plan of the Company or a Related Entity, Awards shall not be deemed compensation for purposes of computing benefits or contributions under any retirement plan of the Company or a Related Entity, and shall not affect any
benefits under any other benefit plan of any kind or any benefit plan subsequently instituted under which the availability or amount of benefits is related to level of compensation. The Plan is not a “Retirement Plan” or “Welfare
Plan” under the Employee Retirement Income Security Act of 1974, as amended. 
 16. Unfunded Obligation. Grantees shall have the
status of general unsecured creditors of the Company. Any amounts payable to Grantees pursuant to the Plan shall be unfunded and unsecured obligations for all purposes, including, without limitation, Title I of the Employee Retirement Income
Security Act of 1974, as amended. Neither the Company nor any Related Entity shall be required to segregate any monies from its general funds, or to create any trusts, or establish any special accounts with respect to such obligations. The Company
shall retain at all times beneficial ownership of any investments, including trust investments, which the Company may make to fulfill its payment obligations hereunder. Any investments or the creation or maintenance of any trust or any Grantee
account shall not create or constitute a trust or fiduciary relationship between the Administrator, the Company or any Related Entity and a Grantee, or otherwise create any vested or beneficial interest in any Grantee or the Grantee’s creditors
in any assets of the Company or a Related Entity. The Grantees shall have no claim against the Company or any Related Entity for any changes in the value of any assets that may be invested or reinvested by the Company with respect to the Plan.

 17. Construction. Captions and titles contained herein are for convenience only and shall not affect the meaning or interpretation
of any provision of the Plan. Except when otherwise indicated by the context, the singular shall include the plural and the plural shall include the singular. Use of the term “or” is not intended to be exclusive, unless the context clearly
requires otherwise. 
 18. Plan Approval. The Plan was adopted by the Executive Committee on August 12, 2004 . On October 1,
2004, the Executive Committee adopted and approved an amendment and restatement of the Plan to (a) reserve a total of 2,960,000 Units for issuance under the Plan and (b) provide that, initially, 1,480,000 Units of the total 2,960,000 Units
will be reserved for issuance as annual bonus compensation in the form of Restricted Units. 
  

 14Form of Stock Pledge Agreement

 Exhibit 10.12 
 FORM OF STOCK PLEDGE AGREEMENT 
 THIS STOCK PLEDGE AGREEMENT (this “Agreement”),
dated as of                     , 200    , is made between by and between JMP Holdings Inc., a Delaware corporation
(the “Secured Party” or the “Company”), on its behalf and on behalf of its subsidiaries and affiliates (collectively with the Company, JMP Group LLC and its and their predecessors and successors, the
“Firm”), and the individual whose name appears at the end of this Agreement (“Pledgor”). 
 W I T N E S S
E T H: 
 WHEREAS, in connection with Pledgor’s participation in the Reorganization and Exchange Agreement (the
“Reorganization Agreement”), dated as of                     , 2007, by and among the Company, JMP Group LLC (“JMP
LLC”) and Joseph A. Jolson as representative of the holders of JMP LLC membership interests, Pledgor, along with other individuals party thereto, and the Secured Party have entered into a Partners’ Exchange Agreement (as amended,
modified, renewed, extended or replaced from time to time, the “Partners’ Exchange Agreement”), dated as of the date hereof, in respect of, inter alia, Pledgor’s obligations to keep information concerning the Firm
confidential, not to engage in competitive activities, not to solicit the Firm’s clients or employees, and to cooperate with the Firm in maintaining certain relationships following the termination of Pledgor’s employment. In addition,
Pledgor has agreed under the Partners’ Exchange Agreement to certain provisions regarding arbitration, choice of law and choice of forum, injunctive relief and submission to jurisdiction with respect to the enforcement of the Obligations.

 NOW, THEREFORE, in consideration of the premises contained herein and for other good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, Pledgor and Secured Party hereby agree as follows: 
 SECTION 1 Definitions;
Interpretation. 
 (a) All capitalized terms used in this Agreement and not otherwise defined herein shall have the meanings assigned to
them in the Partners’ Exchange Agreement. 
 (b) As used in this Agreement, the following terms shall have the following meanings:

 “Additional Collateral” means any and all (i) securities, property, interest, dividends and other payments and
distributions issued as an addition to, in redemption of, in renewal or exchange for, in substitution of, or upon conversion of, the Pledged Shares or such additional capital stock or other equity securities or other interests in the Company
received in respect of any stock split, reverse stock split, stock dividend, spinoff, splitup, merger or other combination, exchange or distribution in connection with any reclassification, increase or reduction of capital, in each case, with
respect to the Pledged Shares, and (ii) cash and non-cash proceeds of the Pledged Shares, and all supporting obligations, of any or all of the foregoing, in each case from time to time received or receivable by, or otherwise paid or distributed
to or acquired by, Pledgor. 
  

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 “Company” has the meaning set forth in preamble. 
 “Documents” means this Agreement, the Partners’ Exchange Agreement, the Reorganization Agreement and all other certificates,
documents, agreements and instruments delivered to Secured Party under the Partners’ Exchange Agreement or in connection with the Obligations. 
 “Event of Default” has the meaning set forth in Section 7. 
 “Firm” has the meaning set
forth in preamble. 
 “Lien” means any mortgage, deed of trust, pledge, security interest, assignment, deposit arrangement,
charge or encumbrance, lien, or other type of preferential arrangement. 
 “Partners Exchange Agreement” has the meaning set
forth in the recitals. 
 “Obligations” means the liabilities and other obligations of Pledgor to Secured Party under or in
connection with this Agreement, the Partner Covenants under the Partners’ Exchange Agreement, including, without limitation, all the Liquidated Damages required to be paid under Partners’ Exchange Agreement, and all interest accrued
thereon, all fees and all other amounts payable by Pledgor to Secured Party thereunder or in connection therewith, whether now existing or hereafter arising, and whether due or to become due, absolute or contingent, liquidated or unliquidated,
determined or undetermined, and including interest that accrues after the commencement by or against Pledgor of any bankruptcy or insolvency proceeding naming such Person as the debtor in such proceeding. 
 “Person” means an individual, corporation, partnership, joint venture, trust, unincorporated organization, governmental agency or
authority, or any other entity of whatever nature. 
 “Pledged Collateral” has the meaning set forth in Section 2(a).

 “Pledged Shares” means all of the issued and outstanding shares of Common Stock, whether certificated or uncertificated,
of the Company issued to Pledgor by Company pursuant to the Reorganization Agreement in exchange for Class A Inside Member Interest (and specifically excluding any Common Stock issued in exchange for his or her Class B Member Interest with
respect to which he or she is deemed an Outside Member of the Firm), as more specifically described in Schedule 1. 
 “Prime Rate” means the prime rate as quoted from time to time in the “Money Rates” section of the western edition of the Wall Street Journal (or, if not available therein, in such other publication as the
Secured Party reasonably shall designate). 
 “Reorganization Agreement” has the meaning set forth in recitals. 

“UCC” means the Uniform Commercial Code as the same may, from time to time, be in effect in the State of California. 
  

 2 

 (c) Where applicable and except as otherwise defined herein, terms used in this Agreement shall have the
meanings assigned to them in the UCC. 
 (d) In this Agreement, (i) the meaning of defined terms shall be equally applicable to both the
singular and plural forms of the terms defined; and (ii) the captions and headings are for convenience of reference only and shall not affect the construction of this Agreement. 
 SECTION 2 Security Interest. 
 (a) As security for the payment and performance of the Obligations, Pledgor hereby pledges to Secured Party, and hereby grants to Secured Party a security interest in, all of Pledgor’s right, title and interest in, to and under
(i) the Pledged Shares and the Additional Collateral and any certificates and instruments now or hereafter representing the Pledged Shares and the Additional Collateral, (ii) all rights, interests and claims with respect to the Pledged
Shares and Additional Collateral, including under any and all related agreements, instruments and other documents, and (iii) all books, records and other documentation of Pledgor related to the Pledged Shares and Additional Collateral, in each
case whether presently existing or owned or hereafter arising or acquired and wherever located (collectively, the “Pledged Collateral”). 
 (b) Pledgor hereby agrees to deliver to or for the account of Secured Party, at the address and to the Person or Persons to be designated by Secured Party, the certificates representing the Pledged Shares, which shall
be in suitable form for transfer by delivery, or shall be accompanied by duly executed instruments of transfer or assignment in blank, all in form and substance satisfactory to Secured Party. The Pledged Shares shall be in certificated form,
however, if at any time the Pledged Shares are required by law to be issued in uncertificated form, Pledgor hereby agrees to deliver to or for the account of Secured Party, such instruments, control agreements or other documents necessary to
transfer and deliver control and possession of the uncertificated Pledged Shares to Secured Party all in form and substance satisfactory to Secured Party. 
 (c) If Pledgor shall become entitled to receive or shall receive any Additional Collateral, Pledgor shall accept any such Additional Collateral as Secured Party’s agent, shall hold it in trust for Secured Party,
shall segregate it from other property or funds of Pledgor, and shall deliver all Additional Collateral and all certificates, instruments and other writings representing such Additional Collateral forthwith to or for the account of Secured Party, at
the address and to the Person to be designated by Secured Party, which shall be in suitable form for transfer by delivery, or shall be accompanied by duly executed instruments of transfer or assignment in blank, all in form and substance
satisfactory to Secured Party, to be held by Secured Party subject to the terms hereof, as part of the Pledged Collateral. Upon accepting any such Additional Collateral hereunder, Secured Party shall promptly send a notification to Pledgor
describing the Additional Collateral accepted and held as part of the Pledged Collateral hereunder, which notification shall be deemed to be a Schedule to this Agreement and may be attached hereto. 
 (d) Pledgor hereby authorizes Secured Party to file at any time and from time to time any financing statements describing the Pledged Collateral, and
Pledgor shall execute and 

  

 3 

 
deliver to Secured Party, and Pledgor hereby authorizes Secured Party to file (with or without Pledgor’s signature), at any time and from time to time,
all amendments to financing statements, assignments, continuation financing statements, termination statements, and other documents and instruments, in form reasonably satisfactory to Secured Party, as Secured Party may reasonably request, to effect
a transfer of a perfected first priority security interest in and pledge of the Pledged Collateral to Secured Party pursuant to the UCC and to continue perfected, maintain the priority of or provide notice of the security interest of Secured Party
in the Pledged Collateral and to accomplish the purposes of this Agreement. Without limiting the generality of the foregoing, Pledgor ratifies and authorizes the filing by Secured Party of any financing statements filed prior to the date hereof.
Pledgor will cooperate with Secured Party in obtaining control (as defined in the UCC) of Pledged Collateral consisting of investment property. Pledgor will join with Secured Party in notifying any third party who has possession of any Pledged
Collateral of Secured Party’s security interest therein and obtaining an acknowledgment from the third party that is holding the Pledged Collateral for the benefit of Secured Party. 
 (e) Pledgor agrees that this Agreement shall create a continuing security interest in and pledge of the Pledged Collateral which shall remain in effect
until terminated in accordance with Section 21. 
 SECTION 3 Representations and Warranties. Pledgor represents and
warrants to Secured Party that: 
 (a) This Agreement constitutes the legal, valid and binding obligation of Pledgor, enforceable against
Pledgor in accordance with its terms. 
 (b) No approval or consent of any other Person, is required for the due execution, delivery or
performance by Pledgor of this Agreement. 
 (c) With respect to the Pledged Shares Pledgor is, or when such Pledged Shares are issued by the
Company, Pledgor will be, and with respect to any Additional Collateral Pledgor will be, the legal record and beneficial owner thereof, and has and will have good and marketable title thereto, subject to no Lien except for the pledge and security
interest created by this Agreement. 
 (d) Pledgor’s residence and place of business, and all books and records concerning the Pledged
Collateral, are located at its address set forth on the signature pages hereof, and Pledgor’s exact legal name is as set forth in the first paragraph of this Agreement. 
 (e) Other than (i) financing statements previously disclosed in writing to Secured Party and (ii) financing statements in favor of Secured
Party, no effective financing statement naming Pledgor as debtor, assignor, grantor, mortgagor, pledgor or the like and covering all or any part of the Pledged Collateral is on file in any filing or recording office in any jurisdiction. 

(f) No control agreements exist with respect to any Pledged Collateral other than control agreements in favor of Secured Party. 
  

 4 

 Pledgor agrees that the foregoing representations and warranties shall be deemed to have been made by it
on the date of each delivery of Pledged Collateral hereunder. 
 SECTION 4 Covenants. So long as any of the Obligations
remain unsatisfied, Pledgor agrees that: 
 (a) Pledgor will, at its own expense, appear in and defend any action, suit or proceeding which
purports to affect its title to, or right or interest in, the Pledged Collateral or the security interest of Secured Party therein and the pledge to Secured Party thereof. 
 (b) Pledgor shall give prompt written notice to Secured Party (and in any event not later than 30 days following any change described below in this
subsection) of: (i) any change in Pledgor’s location of principal residence and (if different) its principal place of business; (ii) any change in the location of books and records pertaining to Pledged Collateral; and (iii) any
change in its name. 
 (c) Pledgor will not surrender or lose possession of (other than to Secured Party or, with the prior consent of
Secured Party, to a depositary or financial intermediary), exchange, sell, convey, transfer, assign or otherwise dispose of or transfer the Pledged Collateral or any right, title or interest therein. 
 (d) Pledgor will not create, incur or permit to exist any Liens upon or with respect to the Pledged Collateral, other than the security interest of and
pledge to Secured Party created by this Agreement. 
 (e) Pledgor will not enter into any shareholders agreement, voting trust, proxy
agreement or other agreement or understanding which affects or relates to the voting or giving of written consents with respect to any of the Pledged Collateral. 
 (f) Pledgor will give Secured Party immediate notice of the establishment of (or any change in or to) any securities account pertaining to any Pledged Collateral. 
 (g) Pledgor hereby agrees that the Secured Party is authorized to hold the Pledged Collateral through one or more custodians, including an affiliate of
Secured Party. If requested by Secured Party, Pledgor hereby agrees to execute and deliver a custody agreement, in form and substance satisfactory to Secured Party, whereby an affiliate of the Firm or a third party designated by the Company would
hold the Pledged Shares pursuant to the terms of this Agreement and the Partners’ Exchange Agreement. 
 (h) Pledgor will take such
actions as Pledgor as Secured Party shall reasonably request to consummate and make effective the transactions contemplated by this Agreement 
 SECTION 5 Administration of the Pledged Collateral. 
 (a) Unless an Event of Default shall have occurred:
(i) Pledgor shall be entitled to receive and retain for its own account any cash dividend in respect of the Pledged Collateral that is not Additional Capital, to the extent consistent with the Partners’ Exchange 

  

 5 

 
Agreement; and (ii) Pledgor shall have the right to vote the Pledged Collateral and to retain the power to control the direction, management and
policies of the Company to the same extent as Pledgor would if the Pledged Collateral were not pledged to Secured Party pursuant to this Agreement; provided, however, that Secured Party shall receive, and Pledgor shall not be entitled
to receive, (A) cash paid, payable or otherwise distributed in redemption of, or in exchange for or in substitution of, any Pledged Collateral, or (B) dividends and other distributions paid or payable in cash in respect of any Pledged
Collateral in connection with a partial or total liquidation or dissolution of the Company or in connection with a reduction of capital, capital surplus or paid-in-surplus or any other type of recapitalization involving the Company; and
provided further, however, that no vote shall be cast or consent, waiver or ratification given or action taken or proxy given which would have the effect of impairing the position or interest of Secured Party in respect of the
Pledged Collateral or which would alter the voting rights with respect to the stock of the Company or be inconsistent with or violate any provision of this Agreement or any other Documents. Secured Party shall execute and deliver (or cause to be
executed and delivered) to Pledgor all such proxies and other instruments as Pledgor may reasonably request for the purpose of enabling Pledgor to exercise the voting and other rights which it is entitled to exercise, and to receive distributions
which it is authorized to receive and retain, pursuant to this subsection (a). 
 (b) Upon and after the occurrence of any Event of
Default: (i) Secured Party shall be entitled to receive all distributions and payments of any nature with respect to the Pledged Collateral, to be held by Secured Party as part of the Pledged Collateral; (ii) Secured Party shall have the
right following prior written notice to Pledgor to vote or consent to take any action with respect to the Pledged Collateral and exercise all rights of conversion, exchange, subscription or any other rights, privileges or options pertaining to the
Pledged Collateral as if Secured Party were the absolute owner thereof; and (iii) Secured Party shall have the right, for and in the name, place and stead of Pledgor, to execute endorsements, assignments or other instruments of conveyance or
transfer with respect to all or any of the Pledged Collateral, to endorse any checks, drafts, money orders and other instruments relating thereto, to sue for, collect, receive and give acquittance for all moneys due or to become due in connection
with the Pledged Collateral and otherwise to file any claims, take any action or institute, defend, settle or adjust any actions, suits or proceedings with respect to the Pledged Collateral, execute any and all such other documents and instruments,
and do any and all such acts and things, as Secured Party may deem necessary or desirable to protect, collect, realize upon and preserve the Pledged Collateral, to enforce Secured Party’s rights with respect to the Pledged Collateral and to
accomplish the purposes of this Agreement. 
 (c) Distributions and other payments which are received by Pledgor but which it is not entitled
to retain as a result of the operation of subsection (a) or (b) shall be held in trust for the benefit of Secured Party, be segregated from the other property or funds of Pledgor, and be forthwith paid over or delivered to Secured Party in
the same form as so received. 
 (d) At any time and from time to time, Secured Party may cause any of the Pledged Collateral to be
transferred into its name or into the name of its nominee or nominees (subject to the revocable rights specified in subsection (a)). Secured Party shall at all times have the right to exchange uncertificated Pledged Collateral for certificated
Pledged Collateral, and to exchange certificated Pledged Collateral for certificates of larger or smaller denominations, for any purpose consistent with this Agreement. 
  

 6 

 (e) For the purpose of enabling Secured Party to exercise its rights under this Section 5 or
otherwise in connection with this Agreement, Pledgor hereby (i) constitutes and appoints each of Secured Party, the Chief Executive Officer of the Secured Party, the Chief Financial Officer of the Secured Party and the General Counsel of the
Secured Party its true and lawful attorney-in-fact, each with full power and authority to execute any notice, assignment, endorsement or other instrument or document, and to do any and all acts and things for and on behalf of Pledgor, which Secured
Party may deem necessary or desirable to protect, collect, realize upon and preserve the Pledged Collateral, to enforce Secured Party’s rights with respect to the Pledged Collateral and to accomplish the purposes hereof, and (ii) except
for any power of attorney in favor of the Company or any of its employees or agents, the Firm or any employee or agent thereof in connection with the Reorganization and the IPO, revokes all previous proxies with regard to the Pledged Collateral and
appoints Secured Party as its proxyholder with respect to the Pledged Collateral to attend and vote at any and all meetings of the shareholders of the Company held on or after the date of this proxy and prior to the termination hereof, with full
power of substitution to do so and agrees, if so requested, to execute or cause to be executed appropriate proxies therefor. Each such appointment is coupled with an interest and irrevocable so long as the Obligations have not been paid and
performed in full. Pledgor hereby ratifies, to the extent permitted by law, all that Secured Party shall lawfully and in good faith do or cause to be done by virtue of and in compliance with this Section 5. 
 (f) If no Event of Default has occurred, the Pledged Shares and any Additional Collateral shall be released from the pledge hereunder, and the security
interest hereby created in the Pledged Shares and any Additional Collateral shall simultaneously be released as follows: 
 (i) On the first
Business Day following the second anniversary of the IPO Date, the number of Pledged Shares (and, as applicable, any Additional Collateral related thereto) equal to the number of shares of Common Stock of Pledgor that are released from the transfer
restrictions under Section 1.3(a)(i) of the Partners’ Exchange Agreement shall be released; 
 (ii) On the first Business Day
following the third anniversary of the IPO Date, the number of Pledged Shares (and, as applicable, any Additional Collateral related thereto) equal to the number of shares of Common Stock of Pledgor that are released from the transfer restrictions
under Section 1.3(a)(ii) of the Partners’ Exchange Agreement shall be released; 
 (iii) On the first Business Day following the
fourth anniversary of the IPO Date, all remaining Pledged Collateral shall be released; 
 Notwithstanding the foregoing, no Pledged Collateral shall be
released if there are one or more pending disputes between Pledgor and the Company as to the occurrence of an Event of Default or as to the right of the Secured Party to exercise its remedies under this Agreement or the Partners’ Exchange
Agreement, including realization against the Pledged Collateral in accordance with Section 8 hereof, and the Pledged Collateral shall not be released and this Agreement shall not terminate until the resolution of all such disputes. 

 

 7 

 SECTION 6 Secured Party’s Duties. Notwithstanding any provision contained in this
Agreement, Secured Party shall have no duty to exercise any of the rights, privileges or powers afforded to it and shall not be responsible to Pledgor or any other Person for any failure to do so or delay in doing so. Beyond the exercise of
reasonable care to assure the safe custody of the Pledged Collateral while held hereunder and the accounting for moneys actually received by Secured Party hereunder, Secured Party shall have no duty or liability to exercise or preserve any rights,
privileges or powers pertaining to the Pledged Collateral. 
 SECTION 7 Events of Default. Any of the following events which
shall occur and be continuing shall constitute an “Event of Default”: 
 (a) Pledgor shall fail to pay when due any amount of
the Liquidated Damages under the Partners’ Exchange Agreement. 
 (b) Pledgor shall fail to perform or observe in any material respect
any of the Partner Covenants under Partners’ Exchange Agreement. 
 SECTION 8 Remedies. 
 (a) Upon the occurrence and during the continuance of any Event of Default, Secured Party may declare the Liquidated Damages to be immediately due and
payable and shall have, in addition to all other rights and remedies granted to it in this Agreement or the Partners’ Exchange Agreement, the right to enforce the Liquidated Damages against Pledgor and all rights and remedies of a secured party
under the UCC and other applicable laws. Without limiting the generality of the foregoing, Pledgor agrees that any item of the Pledged Collateral may be sold for cash or on credit or for future delivery without assumption of any credit risk, in any
number of lots at the same or different times, at any exchange, brokers’ board or elsewhere, by public or private sale, and at such times and on such terms, as Secured Party shall determine; provided, however, that Pledgor shall
be credited with the net proceeds of sale only when such proceeds are finally collected by Secured Party in cash. Secured Party shall give Pledgor such notice of any private or public sales as may be required by the UCC or other applicable law.
Pledgor recognizes that Secured Party may be unable to make a public sale of any or all of the Pledged Collateral, by reason of prohibitions contained in applicable securities laws or otherwise, and expressly agrees that a private sale to a
restricted group of purchasers for investment and not with a view to any distribution thereof shall be considered a commercially reasonable sale. Secured Party shall have the right upon any such public sale, and, to the extent permitted by law, upon
any such private sale, to purchase the whole or any part of the Pledged Collateral so sold, free of any right or equity of redemption, which right or equity of redemption Pledgor hereby releases to the extent permitted by law. Pledgor acknowledges
and agrees with the Secured Party that the Secured Party has no affirmative obligation to prepare or keep effective any such registration statement and agrees that at any private sale the Pledged Shares may be sold at a price that is less than the
price which might have been obtained at a public sale or that is less than the aggregate outstanding amount of the Liquidated Damages. 
  

 8 

 (b) The cash proceeds actually received from the sale or other disposition or collection of Pledged
Collateral, and any other amounts received in respect of the Pledged Collateral the application of which is not otherwise provided for herein, shall be applied first, to the payment of the reasonable costs and expenses of Secured Party in
exercising or enforcing its rights hereunder and in collecting or attempting to collect any of the Pledged Collateral, and to the payment of all other amounts payable to Secured Party pursuant to Section 12; and second, to the payment of
the Liquidated Damages. Any surplus thereof which exists after payment and performance in full of the Liquidated Damages shall be promptly paid over to Pledgor or otherwise disposed of in accordance with the UCC or other applicable law. Pledgor
shall remain liable to Secured Party for any deficiency which exists after any sale or other disposition or collection of Pledged Collateral. 
 SECTION 9 Certain Waivers. (a) Pledgor waives, to the fullest extent permitted by law, (i) any right of redemption with respect to the Pledged Collateral, whether before or after sale hereunder, and all rights, if any,
of marshalling of the Pledged Collateral or other collateral or security for the Obligations; (ii) any right to require Secured Party (A) to proceed against any Person, (B) to exhaust any other collateral or security for any of the
Obligations, (C) to pursue any remedy in Secured Party’s power, or (D) to make or give any presentments, demands for performance, notices of nonperformance, protests, notices of protests or notices of dishonor in connection with any
of the Pledged Collateral; and (iii) all claims, damages, and demands against Secured Party arising out of the repossession, retention, sale or application of the proceeds of any sale of the Pledged Collateral; 
 (b) Pledgor waives any right it may have to require Secured Party to pursue any third person for any of the Obligations. Secured Party may comply with
any applicable state or federal law requirements in connection with a disposition of the Pledged Collateral and compliance will not be considered adversely to affect the commercial reasonableness of any sale of the Pledged Collateral. Secured Party
may sell the Pledged Collateral without giving any warranties as to the Pledged Collateral. Secured Party may specifically disclaim any warranties of title or the like. This procedure will not be considered adversely to affect the commercial
reasonableness of any sale of the Pledged Collateral. If Secured Party sells any of the Pledged Collateral upon credit, Pledgor will be credited only with payments actually made by the purchaser, received by Secured Party and applied to the
indebtedness of the purchaser. In the event the purchaser fails to pay for the Pledged Collateral, Secured Party may resell the Pledged Collateral and Pledgor shall be credited with the proceeds of the sale. 
 SECTION 10 Notices. All notices or other communications hereunder shall be in writing (including by facsimile transmission or by email)
and mailed (by certified or registered mail), sent or delivered to the respective parties hereto at or to their respective addresses, email addresses or facsimile numbers set forth below their names on the signature pages hereof, or at or to such
other address, facsimile number or email address as shall be designated by any party in a written notice to the other parties hereto. All such notices and communications shall be effective (i) if delivered by hand, sent by certified or
registered mail or sent by an overnight courier service, when received; and (ii) if sent by facsimile transmission or electronic mail, when sent. 
  

 9 

 SECTION 11 No Waiver; Cumulative Remedies. No failure on the part of Secured Party to
exercise, and no delay in exercising, any right, remedy, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, remedy, power or privilege preclude any other or further exercise
thereof or the exercise of any other right, remedy, power or privilege. The rights and remedies under this Agreement are cumulative and not exclusive of any rights, remedies, powers and privileges that may otherwise be available to Secured Party.

 SECTION 12 Costs and Expenses. 
 (a) Pledgor agrees to pay on demand all costs and expenses of Secured Party, including the fees and disbursements of counsel to Secured Party, in connection with the enforcement or attempted enforcement of, and
preservation of any rights or interests under, this Agreement, including in any out-of-court workout or other refinancing or restructuring or in any bankruptcy case, and the protection, sale or collection of, or other realization upon, any of the
Pledged Collateral. 
 (b) Pledgor agrees to indemnify Secured Party against and hold it harmless from any and all present and future stamp,
transfer, documentary and other such taxes, levies, fees, assessments and other charges made by any jurisdiction by reason of the execution, delivery, performance and enforcement of this Agreement. 
 (c) Any amounts payable to the Secured Party under this Section 12 or otherwise under this Agreement if not paid upon demand shall bear interest
from the date of such demand until paid in full at a per annum rate equal to the Prime Rate. 
 SECTION 13 Binding Effect.
This Agreement shall be binding upon, inure to the benefit of and be enforceable by Pledgor, Secured Party and their respective successors, assigns, personal representatives, heirs and legatees (including any trust pledgor now or hereafter may
create) and shall bind any Person who becomes bound as a debtor to this Agreement. Pledgor may not assign, transfer, hypothecate or otherwise convey its rights, benefits, obligations or duties hereunder without the prior express written consent of
Secured Party. Any such purported assignment, transfer, hypothecation or other conveyance by Pledgor without the prior express written consent of Secured Party shall be void. Pledgor acknowledges and agrees that in connection with an assignment of,
or grant of a participation in, the Obligations Secured Party may assign, or grant participations in, all or a portion of its rights and obligations hereunder. Upon any assignment of Secured Party’s rights hereunder, such assignee shall have,
to the extent of such assignment, all rights of Secured Party hereunder. Pledgor agrees that, upon any such assignment, such assignee may enforce directly, without joinder of Secured Party, the rights of Secured Party set forth in this Agreement.
Any such assignee shall be entitled to enforce Secured Party’s rights and remedies under this Agreement to the same extent as if it were the original secured party named herein. 
 SECTION 14 Pledgor’s Obligations Not Affected. 
 The obligations of Pledgor under this Agreement shall remain in full force and effect without regard to, and shall not be impaired or affected by (a) any subordination, 

  

 10 

 
amendment or modification of or addition or supplement to this Agreement, the Partners’ Exchange Agreement, the Reorganization Agreement or any
assignment or transfer thereof; (b) any exercise or non–exercise by the Secured Party of any right, remedy, power or privilege under or in respect of this Agreement, the Partners’ Exchange Agreement, the Reorganization Agreement or
any waiver of any such right, remedy, power or privilege; (c) any waiver, consent, extension, indulgence or other action or inaction in respect of this Agreement, the Partners’ Exchange Agreement, the Reorganization Agreement or any
assignment or transfer of any thereof; (d) any bankruptcy, insolvency, reorganization, arrangement, readjustment, composition, liquidation or the like, of the Company, whether or not Pledgor shall have notice or knowledge of any of the
foregoing; (e) any other act or omission to act or delay of any kind by Pledgor, the Secured Party or any other person or any other circumstance whatsoever which might, but for the provisions of this clause (e), constitute a legal and equitable
discharge of Pledgor’s obligations hereunder. 
 SECTION 15 Governing Law. This Agreement shall be governed by, and
construed in accordance with, the law of the State of California, except as required by mandatory provisions of law and to the extent the validity or perfection of the security interests hereunder, or the remedies hereunder, in respect of any
Pledged Collateral are governed by the law of a jurisdiction other than California. 
 SECTION 16 Jurisdiction. The parties
hereby agree that, unless otherwise set forth in this Agreement, any suit, action or proceeding seeking to enforce any provision of, or based on any matter arising out of or in connection with, this Agreement or the transactions contemplated hereby
shall be brought in the United States District Court for the Northern District of California or any California State court sitting in San Francisco, so long as one of such courts shall have subject matter jurisdiction over such suit, action or
proceeding, and that any case of action arising out of this Agreement shall be deemed to have arisen from a transaction of business in the State of California, and each of the parties hereby irrevocably consents to the jurisdiction of such courts
(and of the appropriate appellate courts therefrom) in any such suit, action or proceeding and irrevocably waives, to the fullest extent permitted by law, any objection that it may now or hereafter have to the laying of the venue of any such suit,
action or proceeding in any such court or that any such suit, action or proceeding which is brought in any such court has been brought in an inconvenient form. Process in any such suit, action or proceeding may be served on any party anywhere in the
world, whether within or without the jurisdiction of any such court. Without limiting the foregoing, each party agrees that service of process on such party as provided in Section 10 shall be deemed effective service of process on such party.

 SECTION 17 WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN
ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. 
 SECTION 18 Entire
Agreement; Amendment. This Agreement contains the entire agreement of the parties with respect to the subject matter hereof and shall not be amended except by the written agreement of the parties. 
  

 11 

 SECTION 19 Severability. Whenever possible, each provision of this Agreement shall be
interpreted in such manner as to be effective and valid under all applicable laws and regulations. If, however, any provision of this Agreement shall be prohibited by or invalid under any such law or regulation in any jurisdiction, it shall, as to
such jurisdiction, be deemed modified to conform to the minimum requirements of such law or regulation, or, if for any reason it is not deemed so modified, it shall be ineffective and invalid only to the extent of such prohibition or invalidity
without affecting the remaining provisions of this Agreement, or the validity or effectiveness of such provision in any other jurisdiction. 
 SECTION 20 Counterparts. This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which
taken together shall constitute but one and the same agreement. 
 SECTION 21 Termination. (a) Upon the earlier of
(i) Pledgor’s death or incapacity, (ii) payment and performance in full of all Obligations, or (iii) the release of all Collateral under Section 5(f), the security interests created under this Agreement shall terminate and
Secured Party shall promptly redeliver to Pledgor any of the Pledged Collateral in Secured Party’s possession and shall execute and deliver to Pledgor such documents and instruments reasonably requested by Pledgor as shall be necessary to
evidence termination of all security interests given by Pledgor to Secured Party hereunder. 
 SECTION 22 Joint and Several
Liability. When this Agreement is signed by more than one Pledgor, the word “Pledgor” shall mean all and any one or more of them, and the obligations of all persons signing this Agreement shall be joint and several. 

[Signature page follows] 
  

 12 

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

			
	  

	PLEDGOR
	
	  

	  

	  

	Attn:	 	  

	Fax:	 	  

	email:	 	  

	
	SECURED PARTY
	
	JMP Holdings Inc.
		
	By	 	  

	Title:	 	
	  

	  

	  

	Attn:	 	  

	Fax:	 	  

	email:	 	  

  

 13 

 SCHEDULE 1 
 to the Stock Pledge Agreement  
 PLEDGED SHARES 
                      stock of
                                        
being represented by stock certificates as follows: 
  

					
	 Certificate No.
	  	 Certificate Date
	  	 No. of Shares

  

 S-1.

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