Document:

Amendment No. 2 to the Employment Agreement

 Exhibit 10.2 
 AMENDMENT NO. 2 
 TO THE 
 EMPLOYMENT AGREEMENT 
 This AMENDMENT NO. 2 (the “2nd Amendment”), dated 12, 2009, is entered into by and between Hudson Holding Corp., a Delaware corporation (the “Company”), and Keith R. Knox (the
“Employee”), for the purpose of amending the terms of that certain Employment Agreement, dated January 1, 2007 (the “Agreement”) and the Amendment No. 1 to the Employment Agreement, dated May 19, 2008
(1st Amendment). 
 WHEREAS, the Company and Employee desire to amend, modify and clarify the Agreement, and supersede and replace
the 1st Amendment, as set forth in this 2nd Amendment. 
 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,
the parties amend the Agreement and 1st Amendment and
agree as follows: 
 1. All capitalized terms not defined herein shall have the same meaning ascribed to them in the Agreement.

 2. Section 5(b) of the Agreement is hereby replaced in its entirety as follows: 
 (b) Annual Bonus. 
  

	 	(i)	In the event the Company’s annual consolidated pretax earnings, as determined in accordance with generally accepted accounting principles and reported in the
Company’s Form 10-K (the “Company’s Earnings”), are positive for any fiscal year the Company shall pay Employee annual bonus compensation (the “Annual Bonus”) in an amount equal to 4% of the Company’s Earnings for
such fiscal year. 

  

	 	(ii)	 A prorated portion of the Annual Bonus shall be payable quarterly (the “Quarterly Payment”) in the event quarterly and year to date
consolidated pretax earnings (the “Quarterly Earnings”) are positive and after deducting any bonus payments made hereunder in the current fiscal year. All Quarterly Payments are subject to a holdback of 25% (the “Holdback”) of
the Quarterly Payment due Employee. In the event the Quarterly Earnings are not positive calculated on a year to date basis, no Quarterly Payment shall be made and payment of the Annual Bonus, if any, shall be deferred until completion of the fiscal
year. Adjustment will be made to the Annual Bonus at year end to reflect any quarters subsequent to Quarterly Payments where Quarterly Earnings are not positive

	 	 
calculated on a year to date basis. Payment of the Annual Bonus at the end of the fiscal year shall be paid upon the filing of the Form 10-K and the payment of a Quarterly Payment, when due,
shall be made within forth five (45) days of the completion of the fiscal quarter. To the extent the Annual Bonus is due to Employee at the completion of the fiscal year (including the Holdback), such payment shall be less any Quarterly
Payments received by Employee during the fiscal year. To the extent that any payment received by the Employee in a fiscal year is in excess of the Annual Bonus due for such fiscal year, such excess amount shall be credited against the amount due to
Employee for the Annual Bonus for the succeeding fiscal year. In the event that Employee is entitled to a Termination payment under Section 13 hereunder, any Quarterly Payments that are an overpayment of the Annual Bonus prior to the
Termination Payment will be deducted.” 

 3. Section 13 of the Agreement is replaced in its entirety
as follows: 
  

	 	“13.	Termination For Cause/ Termination For Good Reason. 

 (a) The Company may terminate the employment of Employee under this Agreement only for Cause (as hereinafter defined), Disability or the death of the Employee during the Agreement Term. 
 (i) Upon such termination for Cause, the Company shall be released from any and all further obligations under this
Agreement, except that the Company shall be obligated to pay Employee his Salary, reimbursable expenses and benefits owing to the Employee through the date of termination and any Annual Bonus (or Quarterly Payment) due and not yet paid as of the
Termination Date. 
 (ii) Upon any termination without Cause or Employee’s termination or resignation for
Good Reason, Employee will be paid in a lump sum, less all appropriate withholding, within 30 days of the termination date, a termination payment (the “Termination Payment”). The Termination Payment will be equal to (1) all unpaid
Compensation under section 5 of the Agreement, and any amendments thereto, including Salary, and Car Allowance, that was not received by the Employee, for each calendar year, or portion thereof, from the Termination Date through the Agreement Term;
(2) a payment equal to the cost of COBRA premiums for medical insurance that were not received by the Employee for each calendar year, or portion thereof, from the Termination Date through the Agreement Term and (3) any Annual Bonus (or
Quarterly Payment) due and not yet paid as of the Termination Date. 

 (b) As used herein, the term “Cause” shall mean: 
 (i) a material breach or material default by Employee of the terms of (A) this Agreement (except any such breach or
default that is caused by the Disability or death of Employee), which breach or default remains uncured after twenty (20) days following Employee’s receipt from the Company of written notice specifying such breach or default or
(B) any material policy of the Company (including, without limitation, the Company’s policies with respect to insider trading and other trading activities); 
 (ii) gross negligence or willful misconduct by Employee or the breach of a fiduciary duty of Employee to the Company in the
performance of his duties hereunder; 
 (iii) the commission by Employee of an act of fraud, embezzlement or any
other crime by Employee in the performance of his duties as an employee hereunder; 
 (iv) conviction of
Employee of a felony or any other crime that could materially interfere with the performance of Employee’s duties hereunder or materially damages the reputation of the Company; 
 (v) failure to hold and maintain in full force and effect during the term of this Agreement, all licenses required by the
NASD, all applicable self regulatory organizations, and all federal and state securities and other laws necessary to perform services to the Company as contemplated by this Agreement. 
 (c) As used herein, the term “Good Reason” is defined as any of the following events which are not cured by Company
within twenty (20) days after receipt of written notice of termination from Employee based on: (i) reduction in the Employee’s (then) current Salary; (ii) diminution, reduction or other adverse change in the Annual Bonus,
Quarterly Payment, or other incentive compensation opportunities available to the Employee; (iii) a change in the Employee’s title subordinate to the title of President or a significant diminution of the Employee’s title, position,
authority or responsibility; (iv) assignment to the Employee of duties incompatible with the position of President; (v) a determination by a court that there has occurred a material breach by the Company of any provision of this Agreement,
or any amendments thereto, which is not remedied within 20 days after receipt by the Company of written notice from Employee; or (vi) a Change in Control as defined in Section 14. 

 (d ) Employee shall not be required to mitigate the amount of the
Termination Payment called for by Section 13, or any other payments or benefits due under this Agreement, by seeking other employment.” 
 “ 
 4. Section 14 of the Agreement is replaced in its entirety as
follows: 
  

	 	“14.	Change of Control. 

 (a) In the event that there occurs a “Change of Control” (as defined below) during the term of this Agreement and as a result thereof the Employee resigns for Good Reason (as defined in
Section 13(c)(vii) above), or this Agreement is terminated, the Company expressly agrees that upon such resignation or termination, the Company shall pay to the Employee the Termination Payment set forth in Section 13 above. As used
herein, the term “Change of Control” shall mean, either 
  

	 	(i)	any Person, or “group” as defined in section 13(d)(3) of the Securities Exchange Act of 1934, becomes, directly or indirectly, the Beneficial Owner of 50% or
more of the combined voting power of the then outstanding securities of the Corporation that are entitled to vote generally for the election of the Corporation’s directors (the “Voting Securities”) (other than as a result of an
issuance of securities by the Corporation approved by Continuing Directors, or open market purchases approved by Continuing Directors at the time the purchases are made). 

  

	 	(ii)	as the direct or indirect result of, or in connection with, a reorganization, merger, share exchange or consolidation (a “Business Combination”), a contested
election of directors, or any combination of these transactions, Continuing Directors cease to constitute a majority of the Corporation’s board of directors, or any successor’s board of directors, within two years of the last of such
transactions; 

  

	 	(iii)	 the shareholders of the Corporation or the Corporation approve a Business Combination, unless immediately following such Business Combination,
(1) all or substantially all of the Persons who were the Beneficial Owners of the Voting Securities outstanding immediately prior to such Business Combination Beneficially Own more than 60% of the combined voting power of the then outstanding
voting securities entitled to vote generally in the election of directors of the Corporation resulting from such Business Combination (including, without limitation, a company

	 	 
which as a result of such transaction owns the Corporation through one or more Subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Business
Combination, of the Voting Securities, (ii) no Person and any Affiliate and any employee benefit plan or related trust of the Corporation or the Corporation resulting from such Business Combination) Beneficially Owns 30% or more of the combined
voting power of the then outstanding voting securities entitled to vote generally in the election of directors of the Corporation resulting from such Business Combination, and (iii) at least a majority of the members of the board of directors
of the Corporation resulting from such Business Combination are Continuing Directors.” 

 5.
Section 15 of the Agreement is replaced in its entirety as follows: 
  

	 	“15.	Remedy. 

 (a) It is mutually understood and agreed that Employee’s services are special, unique, unusual, extraordinary and of an intellectual character giving them a peculiar value, the loss of which cannot be reasonably or adequately
compensated in damages or in an action at law. Accordingly, in the event of any breach of this Agreement by Employee, the Company shall be entitled to equitable relief by way of injunction or otherwise in addition to damages the Company may be
entitled to recover. 
 (b) In the event of any dispute, controversy or claim arising under this Agreement, the
court or arbitration panel that decides the dispute, controversy or claim has the right and power to award to the prevailing party recovery of any or all costs of the legal proceeding (whether in court or in arbitration), interest on any amount
awarded from the date due, and reasonable attorneys’ fees and expenses. “ 
 6. The Company agrees that upon any
termination of Employee’s employment that within three days it will in good faith issue an opinion letter that will remove all restrictions on any stock he owns in the Company. 
 6. This 2nd Amendment supersedes in its entirety the 1st Amendment. Except as specifically set forth in this 2nd Amendment, the Agreement will remain unmodified and in full force and effect except as so amended herein. 

7. This Amendment shall be governed by and construed in accordance with the domestic laws of the State of New Jersey, without giving
effect to any choice of law or conflict of law provision or rule (whether the State of New Jersey or any other jurisdiction) that would cause the application of the laws of any jurisdiction

 
other than the State of New Jersey. This Amendment may be executed in one or more counterparts, any one of which may be by facsimile, and all of which taken together shall constitute one and the
same instrument. 
 8. By its signature below, the Company represents and warrants that this amendment has been approved by the
Company through its Board of Directors. 
 IN WITNESS WHEREOF, the parties have executed this Amendment as of the date
first above written. 
  

			
	HUDSON HOLDING CORP.
		
	By:	 	  

			
	Name:	 	
	Title:	 	
	
	EMPLOYEE
	
	  

	Keith R. KnoxTermination Agreement

 Exhibit 10.3 
 TERMINATION AGREEMENT 
 THIS AGREEMENT is made and entered into on this 12th day of October, 2009, by and between Martin Cunningham (hereinafter referred to as “Cunningham”) and Hudson Holdings Corporation (hereinafter referred to as the “Company”). 
 WITNESSETH: 
 WHEREAS, Cunningham is currently employed as the Chief Executive Officer of the Company, pursuant to an Employment Agreement between the Company and Cunningham effective January 1, 2007, and as amended May 19 ,2008 (as amended,
the “Employment Agreement”), 
 WHEREAS, Cunningham currently serves as Chairman of the Board of Directors of the
Company (the “Board”) and a director of the Company and 
 WHEREAS, Cunningham desires to terminate his employment
relationship with the Company; NOW, THEREFORE, in consideration of the premises and mutual promises herein contained, it is mutually agreed as follows: 
  

	1.	Termination of Employment and Directorships. 

 Effective on October 12, 2009 (the “Effective Date”), Cunningham shall: (a) resign from his employment with the Company; and (b) resign from his position as Chairman of the Board and a director of the Company. The
Company hereby represents that the terms of this Agreement have been duly approved by the Board and that its Form U5 filing will reflect Cunningham’s termination as voluntary. 
  

	2.	Payments to Cunningham. 

 In
consideration of Cunningham’s resignation of employment, his agreement in Section 4 below, and his execution of the release attached hereto as Exhibit A, the Company agrees to provide Cunningham the following benefits. 
 (a) The Company agrees to pay Cunningham the balance of the salary due to Cunningham under the Employment Agreement of $475,000 payable by
wire transfer pursuant to instructions provided by Cunningham as follows: 
 (i) $200,000 on October 12, 2009 

(ii) $275,000 payable in 12 installments of $22,916.66 on the first of each month beginning November 1, 2009 with the final payment
to be made on October 1, 2010. 
 The Company shall deliver to Cunningham its promissory note in the form of Exhibit B evidencing the
Company’s obligation to pay the balance of the salary due under the Employment Agreement as set forth in (ii) above. 
 (b) The Company shall pay on behalf of Cunningham all applicable premiums necessary for continued group health plan coverage under COBRA, such continued coverage to include medical insurance and dental insurance through
December 31, 2011, provided that Cunningham is not otherwise eligible for medical and dental benefits from a new employer which are comparable to the benefits provided by the Company during such period. Cunningham shall promptly notify the
Company if during the remaining term of the Agreement he accepts a position of employment that offers such comparable medical benefits. 
 (c) The Company shall pay the fees and out of pocket expenses of Cunningham’s counsel incurred in connection with the negotiation of this Agreement. 
 (d) Cunningham shall be responsible for the payment of all taxes due on such amounts. 

	3.	Indemnification and Insurance. 

 In connection with and in consideration for past services performed by Cunningham as an officer and director, the Company shall, from and after the Effective Date, indemnify and hold Cunningham harmless from and against any and all claims
that may be brought against him and liabilities that may be imposed (and related expenses, including without limitation reasonable attorneys’ fees) arising out or relating to his activities or position as an officer or director of the Company
prior or subsequent to the Effective Date, to the maximum extent then permitted by the laws of the State of Delaware, the Company’s Amended and Restated Articles of Incorporation, and the Company’s By-laws, and, to the extent possible,
shall name Cunningham as an insured party under the Company’s Director and Officer insurance policies. 
  

	4.	Non Solicitation. 

 (a) For a
period of twelve (12) months from the Effective Date, Cunningham shall not directly or indirectly employ, solicit the employment of, attempt to affiliate for profit with, or otherwise encourage any employee of the Company to terminate
employment or affiliation with the Company, as applicable, for the benefit of Cunningham or any other party, or assist any enterprise to employ any person employed by or affiliated with the Company at any time during the term of Cunningham’s
affiliation with the Company. 
 (b) For a period of twelve (12) months from the Effective Date, Cunningham shall not
directly or indirectly induce or solicit any of the designated customers of the Company set forth on Exhibit C to do business with Cunningham except on behalf of the Company or as authorized in writing by the Company. 
  

	5.	Publicity and Non-Disparagement. 

 Both Cunningham and the Company shall refrain from publicly discussing the circumstances surrounding the termination of Cunningham’s employment with the Company and shall, in all instances, refrain from making any statements that could
reasonably be interpreted as disparaging of one another. To the extent that the Company shall release a press statement relating to such management change, such press release shall be subject to the prior mutual agreement of both parties and their
counsel. 
  

	6.	Choice of Law, and Choice of Forum. 

 This Agreement is made and entered into in the State of New York, and shall in all respects be interpreted, enforced and governed under the laws of the State of New York. The language of all parts of this Agreement shall in all cases be
construed as a whole, according to its fair meaning, and not strictly for or against any of the parties. 
 It is intended that
amounts payable to or for the benefit of Cunningham under this Agreement shall comply with and avoid the imputation of any tax, penalty or interest under Section 409A of the Internal Revenue Code of 1986, as amended, and this Agreement shall be
construed and interpreted in a manner consistent with that intent. 
 Notwithstanding the foregoing, the Company and Cunningham
expressly consent to the sole and exclusive jurisdiction of the state and federal courts of New York in any proceeding involving this Agreement. 
 Notwithstanding the foregoing, it is mutually agreed that the Company may seek and obtain temporary and permanent injunctive relief in any court of competent jurisdiction to enforce Cunningham’s
non-solicitation obligations hereunder. 

	7.	Enforcement of Agreement. 

 The Company shall be
obligated to pay any expenses incurred by Cunningham, including reasonable attorney fees, out of pocket expenses, together with interest thereon, in connection with any action to enforce the terms of this Agreement that is resolved, whether by
judgment or settlement, in Mr. Cunningham’s favor.
  

	8.	Severability of Provisions. 

 Should any provision of this Agreement be declared or be determined by any court to be unenforceable or invalid as drafted, it may and shall be reformed or modified by a court of competent jurisdiction to the form of an enforceable and
valid provision that achieves, to the greatest extent possible, the result intended by the parties in drafting and agreeing to the unenforceable and invalid provision. Should a court of competent jurisdiction decline to so reform or modify such a
provision or determine that no enforceable and valid provision can be created to achieve the intended result, the unenforceability and invalidity of the remaining parts, terms or provisions of this Agreement shall not be affected thereby and said
unenforceable or invalid part, term, or provision shall be deemed not to be a part of this Agreement. 
  

	9.	Entire Agreement. 

 This
Agreement sets forth the entire agreement between the parties hereto, and fully supersedes any and all prior agreements or understanding between the parties hereto pertaining to the subject matter hereof, and may only be modified by a subsequent
written agreement. 
 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first above written. 
  

	
	HUDSON HOLDING CORPORATION
	
	  

	By:
	
	  

	Martin Cunningham

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